Parent Company's highlights

The following table illustrates highlights of the parent’s operating results, earnings and financial position

(in milions of euro)
Operating income  24.3   17.5 
Net financial income and net income from equity investments  195.9  211.2 
Net income (loss)  191.9  234.4 
Non current-financial assets  1,536.1  1,363.7 
Equity  1,940.0  1,866.2 
Net financial (liquidity)/debt position (227.1)  (288.6) 

At December 31, 2013 the company had net income of euro 191.9 million, including euro 310 million in dividends received from the subsidiary Pirelli Tyre S.p.A. adjustment of the value of certain financial assets with a negative impact of euro 126.7 million, of which euro 20.1 million for the subsidiary Pirelli & C.Ambiente S.r.l., euro 15.2 million for the subsidiary Pzero S.r.l., euro 23.7 million for RCS Mediagroup S.p.A., euro 10.4 million for Mediobanca S.p.A. (adjustment made on the half-yearly financial statements at June 30, 2013 consistently with the policy that rules the significance threshold and duration of the decrease in value), euro 4.9 million for Alitalia S.p.A., euro 44.3 million for fair value adjustment of the “convertendo” equity instrument of the subsidiary Prelios S.p.A., and euro 4.8 million for the associate Fenice S.r.l..

The following table summarises the carrying values of the principal non-current financial assets at December 31, 2013

(in milions of euro)
Equity investments in subsidiaries
Pirelli Tyre S.p.A.  1,085.8 
Pirelli Finance (Luxembourg) S.A. - Lussemburgo  10.4 
Pirelli Ltda - Brasile  9.7 
Pirelli Ambiente S.r.l.  13.5 
Pirelli Labs S.p.A.  4.1 
Pirelli UK Ltd  21.8 
Pirelli Group Reinsurance Company S.A.  6.3 
PZero S.r.l.  4.0 
Pirelli Servizi Amministrazione e Tesoreria S.p.a.  3.2 
Other  3.3 
Total equity investments in subsidiaries 1,162.1 
Equity investments in associates and other financial assets
Eurostazioni S.p.A.  52.9 
Prelios S.p.A.  21.8 
"Convertendo" Prelios S.p.A.  104.0 
Fenice S.r.l.  18.2 
Mediobanca S.p.A.  100.1 
RCS Mediagroup S.p.A.  30.5 
Fin. Priv. S.r.l.  13.7 
Fondo Comune di Investimento Immobiliare - Anastasia  15.0 
Alitalia S.p.A.  7.5 
Istituto Europeo di Oncologia S.r.l.  5.0 
Other  5.3 
Total equity investments in associates and other financial assets  374.0 
Total non-current financial assets  1,536.1 

Equity rose from euro 1,866.2 million at December 31, 2012 to euro 1,940.0 million at December 31, 2013. The change is illustrated as follows

(in milions of euro)
Equity at 12.31.2012 1,866.2 
Net income 191.9 
Dividends paid (156.7) 
Gains/(losses) recognised directly in Equity 38.6 
Equity at 12.31.2013 1,940.0 

The following table illustrates the breakdown of equity at December 31, 2013 and comparative figures for the year at December 31, 2012

(in milions of euro)
Share capital 1,343.3  1,343.3 
Legal reserve 129.6  117.9 
Business combination reserve 12.4  12.4 
IAS operating reserve 42.6  3.9 
Retained earnings 220.2  154.3 
Net icome 191.9  234.4 
  1,940.0  1,866.2 

The net financial (liquidity)/debt position, which was a positive euro 227.1 million at December 31, 2013 as compared with euro 288.6 million at December 31, 2012, was mainly impacted by the receipt of dividends from the subsidiaries and other equity investments totalling euro 325.2 million (including euro 310.0 million from Pirelli Tyre S.p.A.), offset by payment of the dividend of euro 156.7 million and capital increases executed by RCS Mediagroup S.p.A. (euro 21.3 million) and Fenice S.r.l. (euro 23 million), plus reclassification of the euro 169.9 million credit from Prelios S.p.A. as shares and equity instruments following the extraordinary capital transactions completed in 3Q 2013 that involved financial restructuring of Prelios S.p.A..