Exor N.v. · EURONEXT:EXO

Exor — Debt Investor Presentation (January 2018)

34 slides from Exor's debt investor presentation, Jan 10, 2018

  1. Slide 1: Company Presentation, January 10, 2018

    COMPANY PRESENTATION JANUARY 10, 2018

  2. Slide 2: statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticip…

    By accessing or reading this presentation you agree to be bound by the following advisers or representatives (collectively, the Joint Lead Managers) and, to the limitations. extent permitted by law, EXOR, and each of their respective directors, officers, employees, affiliates, advisers and represent

  3. Slide 3: Solely for the purposes of the manufacturer’s product approval process, the target manufacturer’s target

    Solely for the purposes of the manufacturer’s product approval process, the target This document is for distribution in Italy only to "qualified investors" (investitori market assessment in respect of the Notes has led to the conclusion that: (i) the qualificati), as defined pursuant to Article 100,

  4. Slide 4: “relevant persons”). This presentation is communicated only to relevant persons JANUARY 10, 2018 COMPANY

    This presentation is being communicated only to (i) persons who are outside the will be offered only pursuant to a final prospectus. United Kingdom, (ii) persons who have professional experience in matters relating to investments falling within Article 19(5) of The Financial Services and Markets Non

  5. Slide 5: Agenda

    COMPANY AGENDA PRESENTATION 1. PROFILE 2. PORTFOLIO COMPOSITION 3. GROSS DEBT UPDATE 4. OBJECTIVES JANUARY 10, 2018 COMPANY PRESENTATION 5

  6. Slide 6: 1. Profile

    COMPANY 1. PROFILE PRESENTATION JANUARY 10, 2018 COMPANY PRESENTATION 6

  7. Slide 7: More than a century in business

    MORE THAN A CENTURY IN BUSINESS 1899 Senator Giovanni Agnelli co-founds FIAT Senator Giovanni Agnelli creates a holding company, IFI, to control and 1927 oversee FIAT and his other businesses 1957 IFI acquires control of IFIL, a diversified financial service company 1964 IFINT IFINT (IFI Internation

  8. Slide 8: Over a century of owning businesses

    OVER A CENTURY OF OWNING BUSINESSES INDUSTRIAL MEDIA AND ENTERTAINMENT REAL ESTATE CONSUMER GOODS AND RETAIL BUSINESS SERVICES FINANCIAL SERVICES ConstitutionRe JANUARY 10, 2018 COMPANY PRESENTATION 8

  9. Slide 9: Last decade: simplifying holding companies

    LAST DECADE: SIMPLIFYING 5 HOLDING COMPANIES 1 HOLDING COMPANY • A decade of corporate structure simplification: from a complex structure with five different holdings to a single diversified holding company • This transformation has allowed to achieve an increased level of transparency, a more effic

  10. Slide 10: Last decade: transforming Fiat to create value

    LAST DECADE: TRANSFORMING FIAT TO CREATE VALUE FROM AN ITALIAN INDUSTRIAL CONGLOMERATE… …TO THREE FOCUSED GLOBAL BUSINESSES 2009 2011 2013 2014 2015/16 Fiat Group and Creation of Fiat CNHI listing on NYSE Agreement with IPO and Ferrari Chrysler Group LLC Industrial Group and Borsa Italiana VEBA¹ to

  11. Slide 11: 2. Portfolio Composition

    COMPANY 2. PORTFOLIO COMPOSITION PRESENTATION JANUARY 10, 2018 COMPANY PRESENTATION 11

  12. Slide 12: Net Asset Value at January 2018

    NET ASSET VALUE AT 8 JANUARY 20181 US$ mn 28,503 (3,977) OTHERS2 28,165 338 1,258 24,526 5,013 (5%) (18%) 5,197 (18%) 6,990 (25%) 9,707 (34%) EXOR BUSINESSES Cash & GROSS Gross NET equivalents, ASSET Debt ASSET T.shares VALUE VALUE $28.5 bn $24.5bn $16.5bn GROSS ASSET VALUE NET ASSET VALUE MARKET CA

  13. Slide 13: Capital allocation

    CAPITAL ALLOCATION 1 2 3 INVEST IN OUR NEW BUSINESSES BUYBACK BUSINESSES TOTAL INVESTED AMOUNT1 ~€1.2 bn ~€5.8 bn ~€0.3 bn 2009-2017 YTD  FCA mandatory convertible  Acquisition of 100% of  Between 2009 and 2017 we bond matured in 2016 PartnerRe’s common bought back ~10% of  Increased investment

  14. Slide 14: 3. Gross Debt Update

    COMPANY 3. GROSS DEBT UPDATE PRESENTATION JANUARY 10, 2018 COMPANY PRESENTATION 14

  15. Slide 15: Gross debt composition

    GROSS DEBT COMPOSITION DEBT COMPOSITION DEBT MATURITY PROFILE5 Bank debt 24% €750 Public €650 bonds 2 €550 42% $500 €200 Private €150 $170 placements ¥10,0003 34% 2018 2019 2020 2022 2024 2025 2026 2031 Gross debt = €3,322mn1 All figures are expressed in millions and in the original currency of issu

  16. Slide 16: Gross debt reduction and LTV below 20%

    GROSS DEBT REDUCTION AND LTV BELOW 20% € Bn 4.4 0.5 ✓ BANK DEBT 1.3 0.3 ✓ 0.3 ✓ 3.3 0.4 2017 BOND 0.4 5.375% 0.4 TERM LOAN 0.5 2018 2.5 2.2 BONDS 31-Mar-16 Disposal of Almacantar Other disposals + 2016 BlackAnt redemption 30-Jun-17 cashflow LTV ratio1: 27.9% 17.6% GAV: €15.3bn €18.4bn • A discipline

  17. Slide 17: 4. Objectives

    COMPANY 4. OBJECTIVES PRESENTATION JANUARY 10, 2018 COMPANY PRESENTATION 17

  18. Slide 18: Objectives

    OBJECTIVES OBJECTIVE WHERE WE ARE 1 NAV per share to outperform the MSCI World index in USD ✓ NAV per share has delivered ~19% vs. ~12% of the MSCI World1 2 Free cash flows²> Dividends ✓ ~€1,033 mn > €700 mn3 outflows 3 Investment Grade rating ✓ Rating: BBB+, stable outlook 1) Compounded annual rate

  19. Slide 19: EXOR performance vs. MSCI World ($)

    1 EXOR PERFORMANCE VS. MSCI WORLD ($) NAV PER SHARE PERFORMANCE: FIRST HALF OF 2017 125 120 +17.5% 115 110 +17.5% +9.4% 105 100 95 90 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 EXOR'S NAV per share in US$ MSCI World Index in US$ NAV PER SHARE VS MSCI WORLD INDEX DOLLARS1 ANNUAL PERCENTAGE CHAN

  20. Slide 20: Cash flow and dividends paid

    2 CASH FLOW AND DIVIDENDS PAID CUMULATIVE CASH FLOWS 2009-20171 € mn 308 183 1,524 700 1,033 333 INFLOWS Net financial income Recurrent net general FREE CASH Dividends out NET FREE CASH (Dividends) (expenses) expenses FLOWS FLOWS Net ordinary cash flows exceeding dividend outflows, with an improved

  21. Slide 21: S&P rating, stable outlook confirmed in 2017

    3 S&P RATING, STABLE OUTLOOK CONFIRMED IN 2017 CORPORATE CREDIT RATING LONG-TERM: BBB+ SHORT-TERM: A-2 OUTLOOK: STABLE FINANCIAL RISK SCORE BUSINESS RISK SCORE CURRENT POSITIONING IN THE RATING MATRIX BBB+ EXOR RATING IN THE PAST 10 Credit Watch/ YEARS Outlook 2006 2008 2010 2012 2014 2016 2018 Stab

  22. Slide 22: Key highlights

    KEY HIGHLIGHTS A responsible owner who combines its entrepreneurial approach with a sound financial discipline • Management and Board with a global and long-established experience MANAGEMENT • Strong, skilled and entrepreneurial management team with a long-term AND BOARD perspective • Diversified po

  23. Slide 23: Appendix

    COMPANY APPENDIX PRESENTATION JANUARY 10, 2018 COMPANY PRESENTATION 23

  24. Slide 24: Appendix: Board of Directors and Management

    APPENDIX 1. BOARD OF DIRECTORS AND MANAGEMENT JANUARY 10, 2018 COMPANY PRESENTATION 24

  25. Slide 25: Board of Directors

    BOARD OF DIRECTORS 2009 2012 2018  EXOR is created through the incorporation of  New directors appointed to the Board to bring an  New directors bring additional sectorial and IFIL in IFI increased international perspective international expertise  Board of 17 Directors, 4 of whom are  Board of

  26. Slide 26: Management team

    MANAGEMENT TEAM • Holds a Masters degree in Engineering from the Politecnico di Torino JOHN ELKANN • Started his professional career at General Electric as a member of the Corporate Audit Staff, CHAIRMAN AND CEO with assignments in Asia, the USA and Europe • Chairman of FCA and PartnerRe, Board memb

  27. Slide 27: Appendix: Portfolio Companies

    APPENDIX 2. PORTFOLIO COMPANIES JANUARY 10, 2018 COMPANY PRESENTATION 27

  28. Slide 28: Fiat Chrysler Automobiles

    FIAT CHRYSLER AUTOMOBILES Economic rights: 29.23% Voting rights: 42.4% FINANCIAL SNAPSHOT IFRS 2015 1 2016 H1 2017 Shipments2 (000s units) 4,602 4,482 2,216 Major Global OEM and a portfolio of iconic brands Net Revenues (€bn) 111 111 55.6 Adjusted EBIT (€bn) 3 4.8 6.1 3.4 Mass market Premium Compone

  29. Slide 29: PartnerRe

    PARTNER RE Economic rights1: 100% Voting rights1: 100% FINANCIAL SNAPSHOT US GAAP 2015 2016 H1 2017 Net Premiums written ($m) 5,230 4,954 2,650 A leading global, diversified and pure-play reinsurer Operating Earnings ($m) 2 749 413 154 operating in over 100 markets Adj Net income ($m) 2,3 453 517 24

  30. Slide 30: Ferrari

    FERRARI Economic rights: 22.91% Voting rights: 32.75% FINANCIAL SNAPSHOT IFRS 2015 2016 H1 2017 Shipments (units) 7,664 8,014 4,335 Net Revenues (€m) 2,854 3,105 1,741 The world’s most recognizable and powerful luxury sports car brand Adjusted EBITDA (€m) 1 748 880 512 Adjusted EBIT (€m) 1 473 632 3

  31. Slide 31: CNH Industrial

    CNH INDUSTRIAL Economic rights: 26.90% Voting rights: 39.91% FINANCIAL SNAPSHOT US GAAP 2015 2016 H1 2017 Net sales of Industrial Global leader in the capital goods sector with a global Activities ($bn) 24.7 23.7 12.0 presence and broad reach through 12 brands Operating Profit of 1,432 1,291 700 Ind

  32. Slide 32: Juventus

    JUVENTUS Economic rights: 63.77% Voting rights: 63.77% FINANCIAL SNAPSHOT IFRS 2015/16 2016/17 Professional Football Club and one of the most famous Total Revenues (€m) 387.9 562.7 and revered teams both in Italy and internationally Operating profit (€m) 20.2 67.4 Operating margin 5.2% 12.0% Net inc

  33. Slide 33: The Economist

    THE ECONOMIST Economic rights: 43.40% Voting rights 20.00% FINANCIAL SNAPSHOT 2015 2016 2017 IFRS IFRS IFRS The leading source of analysis Revenues (£m) 324 331 353 on international business and world affairs Operating profit (£m) 59 61 54 Group operating profit 18.3% 18.3% 15.3% margin Profit after

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