Exor Press Release - FY2023 Results
Amsterdam, 11 April 2024
EXOR DELIVERS 33% GROWTH IN NAV PER SHARE
IN 2023
-
NAV reached €35.5 billion at 31 December 2023
with NAV per share increasing by 32.7%, outperforming the MSCI
World Index by 15.1 p.p. This increase was mainly driven by the
share price performance of Ferrari and Stellantis.
-
Portfolio diversification increased after the PartnerRe
sale, with €5.4 billion cash deployed in 2023 into Companies,
Investments and share buybacks, while maintaining a strong balance
sheet with an LTV ratio of 10% at year-end.
-
Exor has determined that it is an Investment Entity under
IFRS 10 as of 1 January 2024, driven by its evolution as a company.
From this date, it will change its reporting accordingly by
deconsolidating portfolio companies and accounting for them at fair
value.
-
Ordinary dividend to be distributed of approximately €100
million, corresponding to €0.46 per share, subject to AGM approval.
Share buyback program to restart for the remaining €250
million.
|
€ million |
31/12/2023 |
31/12/2022 |
|
Net Asset Value (a) |
35,513 |
28,233 |
|
Net Asset Value per share - € |
162.36 |
122.34 |
|
Net Financial Position of Exor Holdings System (a) |
(3,968) |
795 |
|
Loan-to-Value ratio (%) |
10.1% |
n.a. |
|
|
|
|
| |
Years ended 31 December |
|
€ million |
2023 |
2022 |
|
Net profit attributable to the owners of the parent (a) |
4,194 |
4,227 |
|
Dividends received |
835 |
839 |
|
Dividends paid |
(99) |
(99) |
(a) APM: the reconciliation with the IFRS
measures can be found on pages 41-46 of the Exor 2023 Annual
Report
KEY EVENTS IN 2023 AND SUBSEQUENT
EVENTS
During the first half of 2023, Exor acquired a
stake of 2.96% in Philips.
On 14 August 2023, Philips and Exor announced
that they had entered into a relationship agreement, as a result of
which Exor increased its stake in Philips to 15%. The total amount
invested was €2,771 million.
On 20 February 2024, Philips announced that
Benoît Ribadeau-Dumas will be nominated for election to the Philips
Supervisory Board at the company's next annual general meeting of
shareholders on 7 May 2024.
-
Increase in investment in Lingotto funds
During 2023, Exor invested a total amount of
€563 million of which €400 million in funds managed by
Lingotto, the independent alternative investment manager wholly
owned by Exor.
-
Completion of €500 million share buyback program and new
program of €1 billion
During the first half of 2023, Exor purchased
ordinary shares for a total invested amount of €246 million,
completing the €500 million share buyback program announced in
March 2022.
On 13 September 2023, Exor's Board approved a
new share buyback program up to €1 billion to be completed in the
following 12 months. Exor considers buybacks an attractive
opportunity to invest in its own Companies when terms are
attractive.
As part of this transaction, on
14 September 2023, Exor launched a reverse Dutch auction
tender offer for an aggregate consideration up to €750 million to
qualifying shareholders.
On 13 October 2023, Exor announced that the
tender offer was oversubscribed and priced at zero premium to
reference price. In accordance with its irrevocable undertaking,
shares were purchased from Giovanni Agnelli B.V. for a total
consideration of €202 million.
The tender offer allowed Exor to acquire 3.8% of
the issued ordinary shares efficiently and at an attractive
discount.
In 2024, Exor expects to buy back shares for the
remaining €250 million through on-market purchases of ordinary
shares on Euronext Amsterdam.
-
Support to Juventus' capital increase
On 6 October 2023, Juventus communicated Exor’s
support to the company's capital increase by undertaking to
subscribe a portion equivalent to its 63.8% stake and Exor’s
commitment to execute a contribution for future capital increases
for a maximum of €127 million. On 21 December 2023, Juventus
communicated that Exor had committed to subscribe for any newly
issued shares that may remain unsubscribed at the end of the
offering period, up to an aggregate amount equal to approximately
€72 million, and that Exor had paid in full its contribution
to capital increase.
On 4 April 2024, Juventus announced that
following the auction of the pre-emptive rights not exercised
during the offer period, its capital increase has been fully
subscribed. Therefore, funding of the approximately €72 million
that Exor had underwritten is not required.
-
Credit rating upgrade by Standard and Poor's
On 9 November 2023, Standard & Poor’s
communicated that it had upgraded Exor’s long-term corporate credit
rating to A- from BBB+, maintaining a “stable” outlook. The
short-term rating of Exor is A-2.
On 14 February 2024, Exor issued bonds for a
nominal amount of €650 million, maturing on 14 February 2033 with
an issue price of 99.371% and a fixed annual coupon of 3.75%. The
purpose of the issue was to raise new funds for Exor's general
corporate purposes and refinance debt maturing in 2024. The notes
are listed on the Luxembourg Stock Exchange, admitted for trading
on the Euro MTF Market, with an A- credit rating assigned by
Standard & Poor’s.
On 4 March, 2024 Exor announced that it had
become a long-term investor in Clarivate, endorsing the strategic
direction set out by the company's management and board, with a
10.1% shareholding in the company.
On the same date, Clarivate and Exor announced
that Suzanne Heywood, Exor's COO, will be nominated for election to
the Clarivate Board of Directors at the company's next annual
general meeting of shareholders on 7 May 2024.
The total amount invested in Clarivate since
2022 is $596 million.
-
Dividend and distribution of reserves expected to be
received in 2024
The dividends and distributions of reserves
already received or proposed by the Board of Directors of some
investee companies are as follows:
|
|
|
Number of shares |
Dividends |
|
Investee company |
Per share (€) |
Total (€ million) |
|
Stellantis N.V. |
449,410,092 |
1.55 |
697 |
|
CNH Industrial N.V. (a) |
366,927,900 |
0.43 |
158 |
|
Philips N.V. (b) |
|
139,297,503 |
0.85 |
118 |
|
Ferrari N.V. |
44,435,280 |
2.44 |
109 |
|
Iveco Group N.V. |
73,385,580 |
0.22 |
16 |
|
Exor's share of dividends |
|
|
1,098 |
(a) Dividend proposed by CNH Industrial equal to
$0.47 per share (equivalent to approximately €0.43 per outstanding
common share, translated at the exchange rate reported by the
European Central Bank on 28 March 2024).(b) Dividend to be paid in
shares.
-
Announcement of change in financial reporting
Exor will change its reporting from 1 January
2024 as it has determined that it is an Investment Entity under
IFRS 10 as of that date.
In the past years, Exor has evolved from a
holding to an investment entity, driven by a significant change in
its portfolio activity and composition, and changes in its
portfolio review process to drive capital allocation decisions
based on fair value.
In line with IFRS requirements, Exor will
deconsolidate portfolio companies and account for them at fair
value, while only continuing to consolidate subsidiaries that
provide support services to the Investment Entity.
The change in reporting will be applied from 1
January 2024, with a material impact on the presentation of the
consolidated financial statements and with first time application
in Half-Year 2024 results. The one-off positive impact on the
income statement is expected to be approximately €12 billion,
resulting from the difference between the net carrying amount of
investments previously consolidated or accounted for using the
equity method and their fair value at the date of the change. The
definitive impact will be disclosed in the Half-Year 2024
results.
Exor believes that this change will better align
Exor’s reporting and financial disclosures to its business and
activities, with NAV and other key metrics audited.
NET ASSET VALUE (NAV)
|
€ million |
Asset Type |
31/12/2023 |
31/12/2022 |
Change vs.31 December
2022 |
|
|
|
|
|
Amount |
% |
|
Companies |
|
34,233 |
24,278 |
9,955 |
41.0% |
|
Ferrari |
L |
13,562 |
8,896 |
4,666 |
52.5% |
|
Stellantis |
L |
9,505 |
5,961 |
3,544 |
59.5% |
|
CNH Industrial |
L |
4,066 |
5,491 |
(1,425) |
(26.0%) |
|
Philips |
L |
2,937 |
— |
2,937 |
n.a. |
|
Iveco |
L |
598 |
408 |
190 |
46.6% |
|
Juventus |
L |
542 |
510 |
32 |
6.3 % |
|
Other companies(a) |
P |
3,023 |
3,012 |
11 |
0.4% |
|
Investments |
|
2,836 |
1,766 |
1,070 |
60.6% |
|
Lingotto(b) |
L/P |
2,099 |
1,185 |
914 |
77.1% |
|
Ventures(c) |
P |
737 |
581 |
156 |
26.9% |
|
Others |
|
2,750 |
6,443 |
(3,693) |
(57.3%) |
|
Reinsurance vehicles |
P |
802 |
622 |
180 |
28.9% |
|
Other assets(d) |
P |
463 |
378 |
85 |
22.5% |
|
Liquidity(e) |
|
1,395 |
5,349 |
(3,954) |
(73.9%) |
|
Treasury stock(f) |
|
90 |
94 |
(4) |
(4.3)% |
|
Gross Asset Value |
|
39,819 |
32,487 |
7,332 |
22.6% |
|
Gross Debt |
|
(4,286) |
(4,234) |
(52) |
1.2% |
|
Bonds and bank debt |
|
(3,682) |
(3,625) |
(57) |
1.6% |
|
Financial liabilities(g) |
|
(604) |
(609) |
5 |
(0.8%) |
|
Other liabilities |
|
(20) |
(20) |
— |
—% |
|
Net Asset Value (NAV) |
|
35,513 |
28,233 |
7,280 |
25.8% |
|
|
|
|
|
|
|
|
NAV per Share in Euro(h) |
|
162.36 |
122.34 |
40.02 |
32.7% |
L= Listed Company; P= Private Company.
(a) Other companies at
31 December 2023 include Institut Mérieux
(€844 million), Christian Louboutin (€700 million), Via
Transportation (€514 million), The Economist
(€384 million), Welltec (€280 million), TagEnergy
(€100 million), Lifenet (€71 million), GEDI
(€68 million), NUO (€42 million), Casavo
(€20 million) and Shang Xia (€0 million). Other companies at
31 December 2022 included Institut Mérieux
(€848 million) Christian Louboutin (€700 million), Via
Transportation (€477 million), The Economist (€370 million),
Welltec (€217 million), GEDI (€167 million), Lifenet
(€71 million), Shang Xia (€67 million), Casavo
(€56 million) and NUO (€39 million).
(b) At 31 December 2023 it includes
public funds (€1,737 million) and private funds
(€362 million). At 31 December 2022 it included
public funds (€1,069 million) and private funds
(€116 million).(c) At
31 December 2023 Ventures include Exor Ventures
(€598 million) and direct investments (€139 million). At
31 December 2022 Ventures included Exor Ventures (€504
million) and direct investments (€77 million). The stake owned
in Casavo via Exor Ventures has been reclassified into Casavo and
included in Other companies.(d) Other assets
include minor private investments and receivables among others.
Items previously classified under Financial investments are
included in Other assets.(e) At
31 December 2023 liquidity includes listed securities
(€1,077 million), cash and cash equivalents
(€274 million) and financial assets (€44 million)
included in the net financial position. At
31 December 2022 liquidity included cash and cash
equivalents (€4,985 million), listed securities
(€320 million) and financial assets (€44 million)
included in the net financial position. Listed securities at
31 December 2023 include Clarivate (€551 million),
Forvia (€203 million) and Investlinx ETFs (€169 million)
among others. Listed securities at 31 December 2022
included Forvia (€141 million) and Clarivate
(€130 million) among others. Financial assets are
investment-grade and high-yield bonds purchased by
Exor.(f) Treasury stock includes shares held in
treasury at the service of 2016 stock option plan, valued at the
option strike price if less than market
price.(g) At 31 December 2023 financial
liabilities corresponds mainly to the outstanding commitment in
Institut Mérieux. (h) Based on 218,735,426 shares
at 31 December 2023 and 230,783,267 shares at
31 December 2022.
SUMMARY OF CONSOLIDATED FINANCIAL RESULTS
(SHORTENED)
Result: Exor closed 2023 with a
consolidated profit of €4,194 million, a net decrease of
€33 million compared to the previous year. In 2023, the share
of the results of subsidiaries and associates increased by
€1,747 million and the positive performance of the investment
funds contributed €498 million, while 2022 results included a
€2,424 million net gain realized on the disposal of PartnerRe
.
Equity: At
31 December 2023 the consolidated equity attributable to
owners of the parent amounts to €23,268 million, a net
increase of €2,641 million versus the previous year.
Net Financial Position: The
consolidated net financial position of the Holdings System at
31 December 2023 is negative €3,968 million, a
negative change of €4,763 million compared to the previous
year, mainly due to €4,392 million in investments and
€996 million in share buybacks, partially offset by
€835 million in dividends received from investments.
EXOR GROUP – Consolidated Income
Statement (Shortened)
|
|
Years ended 31 December |
Change |
|
€ million |
2023 |
2022 |
|
Profit (loss) from investments in subsidiaries and associates: |
|
|
|
|
Share of the profit (loss) |
3,661 |
1,914 |
1,747 |
|
Gain on disposal |
— |
2,424 |
(2,424) |
|
Dividends received |
835 |
839 |
(4) |
|
Dividends eliminated(a) |
(835) |
(839) |
4 |
|
Profit (loss) from investments in subsidiaries and associates |
3,661 |
4,338 |
(677) |
|
Profit (loss) from investments at FVTOCI(b) |
14 |
— |
14 |
|
Profit (loss) from investments at FVTPL |
578 |
80 |
498 |
|
Net financial income (expenses): |
|
|
|
|
Profit (loss) from cash, cash equivalents and financial assets |
138 |
39 |
99 |
|
Cost of debt |
(100) |
(102) |
2 |
|
Exchange (losses) gains, net and other |
(20) |
(41) |
21 |
|
Net financial income (expenses) |
18 |
(104) |
122 |
|
Net recurring general expenses |
(46) |
(31) |
(15) |
|
Net non-recurring other (expenses)income |
(8) |
(47) |
39 |
|
Income taxes and other taxes and duties |
(23) |
(9) |
(14) |
|
Profit (loss) attributable to owners of the
parent |
4,194 |
4,227 |
(33) |
(a) Dividends from investments in
subsidiaries and associates which are included in the share of the
profit (loss) from investments in subsidiaries and associates are
eliminated in the consolidation process.(b) Includes
dividends received from Philips (€10 million), Almacantar Group (€3
million) and FL Entertainment (€1 million).
Share of the profit (loss) The
share of the results from investments in subsidiaries and
associates in the year ended 31 December 2023 is a profit
of €3,661 million, an increase of €1,747 million versus
the previous year. The increase reflects the positive performance
of Exor's investee companies, in particular Stellantis and CNH
Industrial, while the 2022 result was affected by the unrealized
losses of the fixed income portfolio of PartnerRe.
|
|
Result(a) |
Exor’s share(b) |
Change |
| |
Years ended 31 December |
Years ended 31 December |
|
€ million |
2023 |
2022 |
2023 |
2022 |
|
|
Stellantis |
18,596 |
16,799 |
2,790 |
2,392 |
398 |
|
CNH Industrial |
2,138 |
1,726 |
608 |
471 |
137 |
|
Ferrari |
1,252 |
933 |
308 |
228 |
80 |
|
Iveco Group |
218 |
147 |
60 |
40 |
20 |
|
Welltec |
98 |
62 |
47 |
30 |
17 |
|
The Economist Group(c) |
38 |
37 |
16 |
16 |
— |
|
Institut Mérieux(d) |
152 |
111 |
6 |
4 |
2 |
|
Exor Ventures |
22 |
(151) |
35 |
(97) |
132 |
|
Juventus Football Club(e) |
(189) |
(157) |
(121) |
(100) |
(21) |
|
Other(f) |
— |
— |
(88) |
(6) |
(82) |
|
PartnerRe(g) |
— |
(1,100) |
— |
(1,064) |
1,064 |
|
Share of the profit (loss) of investments in subsidiaries
and associates |
3,661 |
1,914 |
1,747 |
(a) Results attributable to owners of
the parents, prepared by each subsidiary and associate for Exor
consolidation purposes, which may differ from those published or to
be published by each reporting entity in its own financial report.
Results reported in foreign currencies have been converted into
Euro at the average exchange rate of the
year.(b) Including consolidation adjustments, where
applicable.(c) The result refers to the period
1 October –30 September.(d) The result 2022
referred to the period 1 July - 31 December 2022.(e) The
result refers to the accounting data prepared for consolidation in
Exor for the period 1 January – 31 December.
(f) Mainly includes the share of the results of GEDI,
Shang Xia, Casavo and Lingotto Investment
Management.(g) The disposal was completed on 12 July
2022.
EXOR GROUP – Consolidated Statement of
Financial Position (Shortened)
|
|
At 31 December |
Change |
|
€ million |
2023 |
2022 |
|
Investments in subsidiaries and associates |
18,725 |
16,244 |
2,481 |
|
Investments at FVTOCI |
4,480 |
971 |
3,509 |
|
Investments at FVTPL |
3,227 |
1,854 |
1,373 |
|
Other assets (liabilities), net |
804 |
763 |
41 |
|
Invested capital |
27,236 |
19,832 |
7,404 |
|
Issued capital and reserves attributable to owners of the
parent |
23,268 |
20,627 |
2,641 |
|
(less) Cash, cash equivalents and financial assets |
(318) |
(5,029) |
4,711 |
|
Gross debt |
4,286 |
4,234 |
52 |
|
Equity and net financial position |
27,236 |
19,832 |
7,404 |
Net Financial Position
|
|
At 31 December |
Change |
|
€ million |
2023 |
2022 |
|
Bank accounts and time deposits |
150 |
1,860 |
(1,710) |
|
Liquidity funds |
66 |
1,114 |
(1,048) |
|
Short duration and other bond funds |
58 |
2,011 |
(1,953) |
|
Financial assets |
35 |
38 |
(3) |
|
Financial receivables |
9 |
6 |
3 |
|
Cash, cash equivalents and financial
assets(a) [A] |
318 |
5,029 |
(4,711) |
|
Exor bonds |
3,467 |
3,475 |
(8) |
|
Bank debt |
215 |
150 |
65 |
|
Other financial liabilities |
604 |
609 |
(5) |
|
Gross debt [B] |
4,286 |
4,234 |
52 |
|
Net financial position of the Holdings System
[A-B] |
(3,968) |
795 |
(4,763) |
(a) Cash, cash equivalents and financial
assets available amount to €768 million (€5,479 million
at 31 December 2022) considering also the undrawn
committed credit lines for €450 million (€450 million at
31 December 2022).
Net change of Net Financial
Position
|
|
Years ended 31 December |
|
€ million |
2023 |
2022 |
|
Net financial position of the Holdings System - Initial
amount |
795 |
3,924 |
|
Dividends received from investments (a) |
835 |
839 |
|
Investments |
(4,392) |
(2,212) |
|
Asset disposals(b) |
— |
7,754 |
|
Dividends paid by Exor |
(99) |
(99) |
|
Buyback Exor shares |
(996) |
(255) |
|
Other changes |
(111) |
(1,308) |
|
Net change during the year |
(4,763) |
4,719 |
|
Net financial position of the Holdings System - Final
amount |
(3,968) |
795 |
(a) In 2023 dividends received from
Stellantis (€602 million), CNH Industrial (€132 million),
Ferrari (€81 million), The Economist (€12 million), Lingotto
Investment Management (€5 million) and Christian Louboutin (€3
million). In 2022 dividends received from Stellantis
(€467 million), PartnerRe (€169 million), CNH Industrial
(€103 million), Ferrari (€61 million), Lingotto
Investment Management (€19 million), The Economist Group (€13
million), Christian Louboutin (€7 million).(b) Mainly
due to the disposal of PartnerRe (€7,743
million).(c) DIVIDENDS
The Board of Directors has put forward a
proposal to present the 2023 Annual Report for adoption to the
Annual General Meeting of Shareholders as well as to approve the
payment of a €0.46 dividend per share in respect of each issued and
outstanding share as of the record date, for a total of
approximately €100 million. In 2023, Exor paid a €0.44
dividend per share for a total amount of approximately
€100 million.
The proposed dividend, to be approved by the
Annual General Meeting of Shareholders, will become payable on
3 June 2024 (ex-dividend date 30 May 2024) and will
be paid to the shareholders of record as of 31 May 2024
(record date).
2024 OUTLOOK
Exor N.V. does not prepare budgets or business
plans, nor does it publish forecast data or data on the basis of
which it is possible to calculate forecast data. Certain Exor
operating subsidiaries and associates (Ferrari, Stellantis, CNH
Industrial and Iveco Group) publish forecast data on their
performance. Other operating subsidiaries (Juventus) publish
information on the foreseeable outlook. Additional information is
provided under “Review of performance of the main companies” in the
Board Report.
The forecast data and information of the above
mentioned operating companies and associates are drawn up
autonomously and communicated by the respective companies and are
not homogeneous. Quantitative forecast disclosures prepared by
these operating companies and the type of information provided, as
well as the underlying assumptions and calculation methods vary
according to the accounting principles applicable to each
subsidiary and the conventional application practices in the
respective sector of reference.
Exor N.V. in fact, is an investment holding
company without a specific business of reference, whose activity is
limited to exclusively or almost exclusively participating in
companies without interfering in their business operations, except
through the exercise of shareholders' rights.
Exor N.V. deems that the forecasted data and
information of the subsidiaries and associates are not significant
or suitable for the purposes of providing indications about the
prospective economic trend of Exor N.V.’s operations, nor represent
a forecast or estimate of the company’s results. Therefore, in
assessing Exor N.V.’s future prospects, it is not possible to rely
on the data and prospective information published by the aforesaid
operating subsidiaries and associates.
Exor’s Annual Report 2023 will be
available on the company’s website at www.exor.com in
section Investors & Media - Financial
Results.
UPCOMING EVENTS
11 April 2024: Full-Year 2023
results conference call hosted by Exor's CFO Guido de Boer
at 10:00am CEST.The webcast and recorded replay will be accessible
under the Investors’ section of Exor’s website
(https://www.exor.com/pages/investors-media/financial-results).
28 May 2024: Annual General
Meeting
25 September 2024: Board approval and
publication of Half-Year 2024 results
26 November 2024: Exor’s annul investor
and analyst call, to be held virtually
ABOUT EXOR
Exor N.V. (AEX: EXO) has been building great
companies since its foundation by the Agnelli Family. For more than
a century, Exor has made successful investments worldwide, applying
a culture that combines entrepreneurial spirit and financial
discipline. With a Net Asset Value of around EUR 36 billion, its
portfolio is principally made up of companies in which Exor is the
largest shareholder including Ferrari, Stellantis, CNH Industrial
and Philips.
For more information, please contact Investor
Relations at ir@exor.com or Media at media@exor.com.
- Exor Press Release - FY2023 Results
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