Exor N.v. · EURONEXT:EXO

Exor — Investor Day (November 2019)

35 slides from Exor's investor day presentation, Nov 21, 2019

  1. Slide 1: Exor Investor Day

    EXOR INVESTOR DAY NOVEMBER 21, 2019

  2. 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

  3. Slide 3: Exor Investor Day Agenda

    EXOR INVESTOR DAY AGENDA 2019  EXOR: FIRST DECADE  OUR CULTURE  OUR COMPANIES  FINANCIAL UPDATE  CLOSING REMARKS  Q&A SESSION NOVEMBER 21, 2019 3

  4. Slide 4: Exor: First Decade

    EXOR INVESTOR DAY EXOR: FIRST DECADE 2019 JOHN ELKANN EXOR CHAIRMAN AND CEO NOVEMBER 21, 2019 4

  5. Slide 5: Over the last 10 years we have delivered on our target of growing NAV/share

    OVER THE LAST 10 YEARS WE HAVE DELIVERED ON OUR TARGET OF GROWING NAV/SHARE... Annual percentage change In USD Year NAV/Share MSCI World Index Delta 20091 113.2 55.6 57.6 2010 33.7 9.6 24.1 2011 (26.2) (7.6) (18.6) 2012 21.6 13.2 8.4 2013 21.0 24.1 (3.1) 2014 0.8 2.9 (2.1) 2015 8.4 (2.7) 11.1 2016 9

  6. Slide 6: Generating above market returns for shareholders

    ...GENERATING ABOVE MARKET RETURNS FOR SHAREHOLDERS Exor Share price (€) 2009-2019 Exor2 MSCI World (10 years)1 Index €71.89 €54.27 Share Performance 837% 225% 10 years Total Shareholder Return 965% 322%3 €5.79 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 NAV/Share pe

  7. Slide 7: Growth driven by portfolio rotation and efficient use of capital

    GROWTH HAS BEEN DRIVEN BY THE ROTATION OF OUR PORTFOLIO AND EFFICIENT USE OF CAPITAL... 2009-2019 (10 years)1 Capital Allocation KEY EXOR ACHIEVEMENTS1 Focused on what makes a difference: INFLOWS OUTFLOWS  Three of the “Big Four”2 companies divested  Increased portfolio concentration: “Big Four” c

  8. Slide 8: The great performance of our companies

    ...AND THE GREAT PERFORMANCE OF OUR COMPANIES Exor Gross Asset Value (GAV) 1 OUR COMPANIES’ ACHIEVEMENTS MARCH 2009 MARCH 2019  The transformation of Fiat led to the creation Others 2 of three leading global companies 8% CNHI PartnerRe 2 15% 29%  Increased geographic diversification of Others Fiat

  9. Slide 9: Our Culture

    EXOR INVESTOR DAY OUR CULTURE 2019 JOHN ELKANN EXOR CHAIRMAN AND CEO NOVEMBER 21, 2019 9

  10. Slide 10: Our culture: entrepreneurial spirit and financial discipline

    OUR CULTURE: ENTREPRENEURIAL SPIRIT AND FINANCIAL DISCIPLINE WE LOOKED AT... OUR HISTORY OUR PEERS OUR PEOPLE OUR NETWORK We learnt from our past We examined the We debated what Shared their experience purpose and values of motivates us and what of creating meaningful similar organizations distingui

  11. Slide 11: Build great companies

    OUR CULTURE: PURPOSE AND VALUES TO BUILD: GREAT COMPANIES: • Foster a culture with clarity of purpose and shared values • Perform to the highest standards • Appoint leaders who walk the talk BUILD • Are distinctive in what they do • Create governance that ensures alignment GREAT • Act in a responsib

  12. Slide 12: Our culture: purpose and values

    OUR CULTURE: PURPOSE AND VALUES AMBITION & HUMILITY CURIOSITY & FOCUS We set high aspirations but remain We seek new ideas while prioritising grounded what matters COURAGE & RESPONSIBILITY PATIENCE & DRIVE We take bold actions while being We take a long term perspective but mindful of their conseque

  13. Slide 13: Our governance framework helps us deliver our purpose

    OUR GOVERNANCE FRAMEWORK HELPS US DELIVER OUR PURPOSE BOARD We create effective Board Structures STRUCTURE • Board size – we have reduced the size of our Boards to increase the quality of board debates • Committees – we have streamlined committees, focusing them on audit, governance and remuneration

  14. Slide 14: Our purpose also guides how we look for companies

    OUR PURPOSE ALSO GUIDES HOW WE LOOK FOR COMPANIES UNDERSTANDING PEOPLE VALUE We invest only when we We back talent and look for We decide based on value understand cultural alignment  We learn from practitioners  We believe people are  We will assess intrinsic and who bring deep knowledge what ma

  15. Slide 15: Our Companies

    EXOR INVESTOR DAY OUR COMPANIES 2019 JOHN ELKANN EXOR CHAIRMAN AND CEO SUZANNE HEYWOOD EXOR MANAGING DIRECTOR NOVEMBER 21, 2019 15

  16. Slide 16: Net Asset Value

    NET ASSET VALUE €mn (% GAV) 1.319 1.379 (3,494) (5%) 3.726 (5%) (14%) 6.535 (25%) 6.706 25.279 26.598 23.104 (25%) 6.933 (26%) BIG FOUR OTHERS COMPANIES Investments, GROSS Gross NET 1 Cash & ASSET Debt ASSET equivalents, VALUE VALUE T.shares Note: Figures as of November 15, 2019. 1) Includes accrued

  17. Slide 17: Big Four Companies

    BIG FOUR COMPANIES COMPANY 2019 (FIRST 9M) HIGHLIGHTS WHAT’S NEXT • Book Value up 17.7% (dividend adjusted) • Continue to strengthen the • Improved Non-Life UW profit (+$148mn) and L&H organization allocated UW profit (+$6mn) yoy • Net investment income up +9% yoy; $765mn net • Disciplined underwrit

  18. Slide 18: Building great companies: CNH Industrial

    OUR COMPANIES BUILDING GREAT COMPANIES AN EXAMPLE: CNH INDUSTRIAL NOVEMBER 21, 2019 18

  19. Slide 19: Exor ownership offers advantages to our companies

    EXOR OWNERSHIP OFFERS ADVANTAGES TO OUR COMPANIES 1 2 3 WE CREATE AN WE EMPOWER OUR WE USE GOVERNANCE TO ENVIRONMENT WHERE LEADERS TO BUILD GREAT STEER OUR COMPANIES COMPANIES CAN THRIVE COMPANIES  Long-term, stable  Use our network to find  Build effective Boards ownership new leaders  Support

  20. Slide 20: We create an environment where companies can thrive (1/2)

    1 WE CREATE AN ENVIRONMENT WHERE COMPANIES CAN THRIVE (1/2) We guided CNHI in formulating its ‘Transform 2 Win’ strategy DELIVER SUPERIOR STAKEHOLDER VALUE DRIVE FUTURE OPPORTUNITIES EXECUTE ACROSS THE CYCLE REVIEW PORTFOLIO NOVEMBER 21, 2019 EXOR INVESTOR DAY: BUILDING GREAT COMPANIES 20

  21. Slide 21: We create an environment where companies can thrive (2/2)

    1 WE CREATE AN ENVIRONMENT WHERE COMPANIES CAN THRIVE (2/2) CNHI’S PURPOSE CNHI’S VALUES ENTREPRENEURSHIP WE CHALLENGE THE STATUS QUO, ARE INNOVATIVE AND SEEK SIMPLICITY. PASSION WE ARE HIGHLY COMMITTED TO DELIVERING AMBITIOUS GOALS. POWERING SUSTAINABLE TEAM SPIRIT TRANSFORMATION WE BUILD DIVERSE T

  22. Slide 22: We supported management in building their 5-year plan

    1 WE SUPPORTED MANAGEMENT IN BUILDING THEIR 5-YEAR PLAN STRATEGIC THEMES CORPORATE OBJECTIVES Innovation and Grow net sales1 thought leadership  5% CAGR Industry-benchmark Improve and simplify operations Delivering margin performance  Adj. EBIT margin1 ~10% (+400 bps) superior total  Adj. EPS ~18

  23. Slide 23: This will transform the company

    1 THIS WILL TRANSFORM THE COMPANY We support CNHI’s plan to create two world-leading companies OFF-HIGHWAY ON-HIGHWAY Specialty Vehicles Construction Powertrain Commercial Vehicles (including buses) $15.6bn1 $13.1bn1 Agriculture • Leader in sustainable agriculture solutions • Leader in sustainable t

  24. Slide 24: We help our leaders build great companies

    2 WE HELP OUR LEADERS BUILD GREAT COMPANIES Exor has supported the recent management changes We ensured the effective succession of the Chairperson We have led the board’s process to appoint a new CEO We supported the streamlining of senior leadership roles, from 23 in 2013 to 13 today, alongside cr

  25. Slide 25: We use governance to steer our companies

    3 WE USE GOVERNANCE TO STEER OUR COMPANIES We have strengthened and empowered the Board to challenge and shape the new strategic business plan to translate our ambitions We reduced the number of directors from 11 in 2013 to 9 today while increasing the weight of independent directors in the Board We

  26. Slide 26: Financial Update

    EXOR INVESTOR DAY FINANCIAL UPDATE 2019 ENRICO VELLANO EXOR CFO NOVEMBER 21, 2019 26

  27. Slide 27: We have managed gross debt efficiently by deleveraging

    WE HAVE MANAGED GROSS DEBT EFFICIENTLY BY DELEVERAGING... Loan to Value (LTV) ratio evolution (20161-2019YTD) 35% PartnerRe acquisition March November € billion Delta 20161 2019 30% 25% Net Debt ~4.3 ~2.4 -44% 20% GAV ex cash2 ~15.2 ~25.5 +68% 15% LTV ratio ~28.3% ~9.4% -18.9pp 10% 5% 0% Mar-16 Sep-

  28. Slide 28: While taking advantage of debt market opportunities

    ...WHILE TAKING ADVANTAGE OF DEBT MARKET OPPORTUNITIES BREAKDOWN MATURITY PROFILE2 Commercial Paper 1% Private €750 placements €650 35% €550 2019 €500 issuance €300 Public €200 €200 $170 bonds ¥10,0003 64% 2020 2022 2024 2025 2026 2028 2031 2034 2038 Gross debt ~ €3.4bn1 All figures are expressed in

  29. Slide 29: We compare favourably with our peers

    WE COMPARE FAVOURABLY WITH OUR PEERS Our Targets Peer Average3 ✓ NAV per Share1 Outperform MSCI OBJECTIVE ~95% ~28% 3Y growth (%) World Index (26%) ✓ FCF2 / Dividend paid Above 1.0x ~1.9x ~0.8x 3Y Avg. ✓ EXOR Cash holding cost / GAV Below 10bps ~10bps ~26bps KPIs 3Y Avg. ✓ Loan To Value ratio (%) Be

  30. Slide 30: We expect to have significant firepower in the next 3 years

    WE EXPECT TO HAVE SIGNIFICANT FIREPOWER IN THE NEXT 3 YEARS in € billion CASH GENERATION CASH USES ~0,3 ~0,4 ~1,8 ~2,6 ~1,9 ~0,8 2019 YE Cash and 2020-2022 Ordinary Total cash available Dividend outflows Deleveraging Firepower capacity 4 equivalents Free Cash Flow • Estimated Cash and equivalents1 a

  31. Slide 31: Closing Remarks

    EXOR INVESTOR DAY CLOSING REMARKS 2019 JOHN ELKANN EXOR CHAIRMAN AND CEO NOVEMBER 21, 2019 31

  32. Slide 32: Our priorities for the next 10 years

    OUR PRIORITIES FOR THE NEXT 10 YEARS • Continue Building Great Companies COMPANIES • Acquire New Companies • Develop our Financial and Seeds investment capabilities INVESTMENTS • Add investment ideas/themes • NAV per share to outperform the MSCI World index • Target Gross Debt of ≤ €2bn keeping LTV

  33. Slide 33: Presenting our new website

    PRESENTING OUR NEW WEBSITE www.exor.com NOVEMBER 21, 2019 EXOR INVESTOR DAY: BUILDING GREAT COMPANIES 33

  34. Slide 34: Exor Investor Day Q&A Session

    EXOR INVESTOR DAY Q&A SESSION 2019 NOVEMBER 21, 2019 34

  35. Slide 35: Slide 35

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