The Benetton Group Annual Report 1996

8. Financial fixed assets
Equity investments
As of the balance sheet date, equity investments not consolidated on a line-by-line basis are as follows:
Subsidiary companies:
12-31-1995 12-31-1996
% Group
ownership
Book value % Group
ownership
Book value
- T.W.R. Group Ltd. 50% 36,399 50% 38,260
- Other minor investments - 3,592 - 838
Associated companies:
- Texmantova S.p.A. 21.73% 4,253 - -
- Other minor investments - - - 1,653
Other companies - 2,907 - 2,490
Total 47,151 43,241
Investments in subsidiary companies, amounting to Lire 39,098 million, include Lire 38,260 million relating
to T.W.R. Group Ltd., which is carried on an equity basis since it operates in a sector dissimilar to that of
the rest of the Group. The inclusion of this company within the scope of the consolidation would have
distorted the consolidated financial statements to the point where they would not have provided a true
and fair view of the financial and operating position of the Group. The balance, Lire 838 million, relates
to other minor subsidiary companies, mainly foreign trading companies, that are carried at cost since
they are either not yet operating or are in liquidation at the balance sheet date.
Benetton International N.V. entered into an agreement to sell Benetton Engineering Ltd. in December
1996. The sale is subject to receipt by the company, from the buyer, of the purchase price.
This subsidiary, which owns 50% of T.W.R. Group Ltd., is wholly owned by Benetton International N.V. The
agreed sale price, £stg. 16,000,000, will generate a gain of £stg. 858,000 with respect to the original cost
incurred, plus related interest at market rates.
Other investments primarily represent minority interests in Japanese retail companies.
Equity investments are analyzed in detail in an attachment.
The 21.73% interest in Texmantova S.p.A. was judged no longer relevant to Group's diversification
strategy and was accordingly sold.
Financial receivables
Financial receivables consist of the following:
Financial receivables:
Balance Maturities (in years) Balance
12-31-1995 Within 1 1 to 5 Beyond 5 12-31-1996
- due within 12 months 10,019 4,170 - - 4,170
- due beyond 12 months 3,355 - 1,629 15 1,644
Assets leased to third parties:
- due within 12 months 173 1,053 - - 1,053
- due beyond 12 months 1,054 - - - -
Guarantee deposits 29,753 - - 13,332 13,332
Total 44,354 5,223 1,629 13,347 20,199
Financial receivables earn interest at market rates.