Exor N.v. · EURONEXT:EXO
Exor — Investor Day (November 2023)
35 slides from Exor's investor day presentation, Nov 30, 2023
Slide 1: Exor Investor Day
EXOR INVESTOR DAY 30 NOVEMBER 2023
Slide 2: Forward-looking statements
Certain statem ents and inform ation contained in this presentation These factors should not be construed as exhaustive and should be that are not statem ents or inform ation of historical fact constitute read in conjunction with the other cautionary statements included forward-looking statements, n
Slide 3: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 3
Slide 4: In 2023 we continued to execute on our priorities
IN 2023 WE CONTINUED TO EXECUTE ON OUR PRIORITIES ▪ Became a long-term investor in Philips, a global leader in health technology, and built a 15% stake ▪ Joined forces with Impala to develop TagEnergy, a fast-growing company in the renewal energy space COMPANIES ▪ Committed to participate in the Juv
Slide 5: We have redeployed the Partner Re sale proceeds
WE HAVE REDEPLOYED THE PARTNER RE SALE PROCEEDS in Euro billion CASH CASH REMAINING GENERATION1 CASH USES ALLOCATED6 CASH 2022-24 ~10.0 3.5 1.7 1.3 0.6 0.7 ~1.7 ~0.5 Debt Companies2 Investments3 Buyback Others5 reduction4 1) Including proceeds from the sale of Partner Re, cash and cash equivalents a
Slide 6: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 6
Slide 7: Our three largest companies continue to progress on their strategic plans
OUR THREE LARGEST COMPANIES CONTINUE TO PROGRESS ON THEIR STRATEGIC PLANS PUSHING THE BOUNDARIES DARE FORWARD BREAKING NEW GROUND Net revenues of €4.4bn YTD Net revenues of €143.5bn YTD Revenues2 of $17.9bn YTD (+19% vs LY)1 (+10% vs LY)1 (+8% vs LY)1 Net profit of €1.0bn YTD Global BEV sales +37% N
Slide 8: We have continued to look for new companies in our three priority sectors
WE HAVE CONTINUED TO LOOK FOR NEW COMPANIES IN OUR THREE PRIORITY SECTORS Priorities Rationale ▪ A non-cyclical sector with structural tailwinds HEALTHCARE ▪ Large sector with significant inefficiencies where we can accelerate innovation ▪ Technology-enabled healthcare solutions can be highly scalab
Slide 9: We have deepened our knowledge of healthcare
WE HAVE DEEPENED OUR KNOWLEDGE OF HEALTHCARE LONG-TERM SUPPORTING TRENDS AREAS WE ARE EXPLORING: Healthcare expenditure has nearly tripled in value since 2000 to +$9tn and represents ~10% of global GDP Healthcare Imaging & COMPANIES Diagnostics Services Instruments Pro capita healthcare expenditure
Slide 10: Our investment in Philips is our largest healthcare investment
OUR INVESTMENT IN PHILIPS IS OUR LARGEST HEALTHCARE INVESTMENT STRONG ALIGNMENT WITH PHILIPS MANAGEMENT TEAM “Exor’s investment in Philips, their long-term outlook and increased focus on healthcare and technology, fit well with our strategy and substantial value creation potential. With our market l
Slide 11: Philips has successfully repositioned itself in the healthcare domain
PHILIPS HAS SUCCESSFULLY REPOSITIONED ITSELF IN THE HEALTHCARE DOMAIN, AND IS CURRENTLY MANAGING A SET OF CHALLENGES SALES (€BN) AND SHARE PRICE EVOLUTION (€) Healthcare (incl. Others) Lighting Entertainment Domestic Appliances Share Price Respironics recall and operational 24.8bn 24.2bn 24.5bn diff
Slide 12: Philips is well positioned in attractive segments
PHILIPS IS WELL POSITIONED IN ATTRACTIVE SEGMENTS Market Leader DIAGNOSIS & TREATMENT CONNECTED CARE PERSONAL HEALTH Mother & Child Enterprise Care 10% Ultrasound Informatics 20% 20% Diagnostic Personal imaging SALES SPLIT¹ €8.9BN 40% €5.4BN Monitoring Oral €3.6BN Care 55% Sleep & 60% Healthcare Ima
Slide 13: Our investment enables us to expand our presence in healthcare
OUR INVESTMENT ENABLES US TO EXPAND OUR PRESENCE IN HEALTHCARE IN LINE WITH OUR ▪ Largest shareholder in a large-scale public company exposed to both healthcare and technology STRATEGY OPERATES IN ATTRACTIVE ▪ Leadership position in attractive niche markets as well as growing exposure to informatics
Slide 14: Philips becomes the fourth large company in our portfolio
PHILIPS BECOMES THE FOURTH LARGE COMPANY IN OUR PORTFOLIO COMPANIES ~86% of GAV or ~€33.4bn ~ 75% of GAV ~ 11% of GAV Gross Asset Value (GAV) ~€38.8bn INVESTMENTS ~7% of GAV or ~€2.8bn (examples) VENTURES OTHERS1 ~7% of GAV or ~€2.6bn Note: Figures based on market prices as of 23 November. 1) Includ
Slide 15: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 15
Slide 16: We have invested ~$0.6bn across a balanced Ventures portfolio
WE HAVE INVESTED ~$0.6BN ACROSS A BALANCED VENTURES PORTFOLIO STAGE EXPOSURE SECTOR EXPOSURE GEOGRAPHIC EXPOSURE PORTFOLIO COMPOSITION LatAm APAC 1% Mobility 7% Other 23% Moonshots 13% 20% EMEA Core Late 43% Positions (10) 56% Deeptech Healthcare 41% Early 11% 22% 44% U.S. Mid-size Consumer 49% Posi
Slide 17: We have launched Vento: the Italian chapter of Exor Ventures
WE HAVE LAUNCHED VENTO: THE ITALIAN CHAPTER OF EXOR VENTURES EARLY-STAGE INVESTING VENTURE BUILDING ✔ The most recognized program for early-stage (pre- VISION ✔ Back the brightest minds to launch ventures seed & seed) Italian entrepreneurs ✔ Invest in 50%+ of the best new companies over the ✔ At lea
Slide 18: Lingotto Overview
Lingotto Overview November 2023
Slide 19: Introduction to Lingotto
Introduction to Lingotto Who We Are Our Objective Lingotto is an independent alternative investment manager, that was launched in May “We are committed to delivering 2023, and is wholly owned by Exor attractive long-term returns to our Two Founding investors: Exor and Covéa limited partners, protect
Slide 20: Our Differentiated Approach
Our Differentiated Approach Capital People Committed, long-term investors with Experienced, entrepreneurial alignment of interest and shared leaders with proven industry track objectives record Strategies Risk Management Complementary and unique Acceptance of concentration, investment philosophies i
Slide 21: Lingotto Values
Lingotto Values Courage & Responsibility Ambition & Humility Having conviction in our differentiated Encouraging diversity of opinion and analysis whilst embracing concentration and rigorous thinking, we aim to deliver maintaining full accountability uncorrelated results Curiosity & Focus Patience &
Slide 22: Strategies and Managing Partners/CIOs
Strategies and Managing Partners/CIOs ~$4.5bn¹ Assets Under Management Today LONG/SHORT EQUITY OPPORTUNITY INNOVATION Matteo Scolari Nikhil Srinivasan James Anderson 20 years investment experience 20 years investment experience 40 years investment experience Former Eton Park Portfolio Manager Former
Slide 23: Strategic and Operational Progress
Strategic and Operational Progress Progress in 2023… …Future Priorities STRATEGIES ‘Opportunity’ launched in Q1 2023 Launch new strategies selectively ‘Innovation’ launched in Q2 2023 New joiners - Investment Teams Managing Partner and CIO, Partners and Analysts Continue to recruit high quality tale
Slide 24: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 24
Slide 25: We have continued to deliver on our targets
WE HAVE CONTINUED TO DELIVER ON OUR TARGETS Our Targets 2023YTD1 Last 5 years2 Outperform ~28% ~63% NAV/Share growth % MSCI World Index vs. MSCI: ~13% vs. MSCI: ~51% OBJECTIVES TSR CAGR % 8% ~32% ~8% FCF3/ Dividend paid Above 1.0x ~7.0x ~3.0x EXOR Holding cost4 / GAV Below 10bps ~7bps ~6bps KPIs Loa
Slide 26: We are disciplined in how we allocate capital
WE ARE DISCIPLINED IN HOW WE ALLOCATE CAPITAL WHILE ENSURING A STRONG BALANCE SHEET AND A STABLE DIVIDEND Companies Investments Buyback • Invest in existing • Invest in Ventures, with • Invest in our own shares companies exposure to early and late- when terms are attractive stage opportunities • Acq
Slide 27: We have taken advantage of our discount to NAV to invest in our portfolio
WE HAVE TAKEN ADVANTAGE OF OUR DISCOUNT TO NAV TO INVEST IN OUR PORTFOLIO ▪ New share buyback program of €1bn announced in September, bringing total share buyback to €1.5bn between 2022 and 2024 ▪ Tender offer for an amount of €750mn launched on 14 September ▪ Oversubscribed and priced at zero premi
Slide 28: We focus on efficient debt management, supported by a rating upgrade to A-
WE FOCUS ON EFFICIENT DEBT MANAGEMENT, SUPPORTED BY A RATING UPGRADE TO A- Current Gross Debt1,2 ~€3.7bn BREAKDOWN WELL BALANCED MATURITY PROFILE Bank debt 7% Public €265 bonds ¥10,000 3 48% Private €200 placements €500 €550 €500 €500 €500 45% €300 $170 €200 2024 2025 2026 2028 2030 2031 2034 2038 A
Slide 29: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 29
Slide 30: Significant progress around our ESG passions
WE ARE CONTINUING TO MAKE SIGNIFICANT PROGRESS AROUND OUR ESG PASSIONS OUR PASSIONS COMMITMENTS AT HOLDING LEVEL OUR PROGRESS ENVIRONMENT ▪ Achieve carbon neutrality by 2022 and ✓ Published our first TCFD Report Emissions reduction net zero emissions by 2025 ✓ Carbon neutral since FY2021 ✓ National
Slide 31: In 2023 we scaled up our Matabì initiative
IN 2023, WE SCALED UP OUR MATABÌ INITIATIVE THAT AIMS TO REDUCE THE GENDER GAP IN STEM SUBJECTS UNDERSTANDING MATABÌ WHAT HAVE WE BEEN BUILDING IN 2023/24? NATIONAL ROLLOUT ▪ Publicly launched in Naples Aim: Reduce the gender gap in STEM subjects ▪ 130 classes from 25 schools in 6 Italian regions ▪
Slide 32: Investor Day Agenda
EXOR INVESTOR AGENDA DAY ▪ UPDATE ▪ COMPANIES ▪ INVESTMENTS ▪ FINANCIALS ▪ ESG ▪ WHAT’S NEXT? 30 NOVEMBER 2023 32
Slide 33: We will continue to focus on our priorities
WE WILL CONTINUE TO FOCUS ON OUR PRIORITIES ✓ Remain a long-term and active shareholder, aligning ownership, governance and leadership ✓ Strengthen our investment capabilities through Exor Ventures and Lingotto ✓ Continue to explore new opportunities ✓ Maintain discipline in capital allocation, whil
Slide 34: Mediocrity is not worth the trip
Mediocrity is not worth the trip. Sergio Marchionne 34
Slide 35: Q&A Session
EXOR INVESTOR Q&A SESSION DAY 30 NOVEMBER 2023 35