Slide 1: Investor and Analyst Call
INVESTOR AND ANALYST CALL MAY 29, 2018
Slide 2: Forward-looking statements
Certain statements and information contained in this • many other factors, most of which are outside of presentation that are not statements or information of the control of EXOR. historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically These f
Slide 3: Agenda
INVESTOR AND AGENDA ANALYST CONFERENCE ▪ OVERVIEW CALL ▪ BUSINESSES ▪ GROSS DEBT ▪ BOARD OF DIRECTORS ▪ PARTNERS COUNCIL ▪ FAMILY BUSINESSES ▪ CLOSING REMARKS MAY 29, 2018 INVESTOR AND ANALYST CALL 3
Slide 4: Overview
INVESTOR AND OVERVIEW ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 4
Slide 5: EXOR Figures
EXOR FIGURES $29.4bn $25.6bn $17.9bn GROSS ASSET VALUE NET ASSET VALUE MARKET CAPITALIZATION ~30% ~13% <10 bps DISCOUNT LOAN-TO-VALUE RATIO HOLDING COSTS $162bn 350,000+ 180+ GROUP NET REVENUES1 GROUP EMPLOYEES COUNTRIES2 2017 EXOR is ranked 20th on the Fortune Global 500 list Note: Figures as of De
Slide 6: 2017 Highlights
2017 HIGHLIGHTS PERFORMANCE Best performing year since 2009 with a +57% NAV per share increase, beating our benchmark by 37% BUSINESSES All businesses achieved or exceeded their financial targets DEBT 25% Gross debt reduction1. Rating outlook upgraded by S&P 1) Since closing the PartnerRe acquisitio
Slide 7: Net Asset Value
NET ASSET VALUE NAV BREAKDOWN NAV PER SHARE PERFORMANCE Annual percentage change MSCI World $mn Value % GAV Year NAV/Share ($) Delta Index ($) 2009 113.2 55.6 57.6 EXOR Businesses 29,102 98.8% 2010 33.7 9.6 24.1 2011 (26.2) (7.6) (18.6) Others1 348 1.2% 2012 21.6 13.2 8.4 2013 21.0 24.1 (3.1) Gross
Slide 8: Total Shareholder Return (TSR)
TOTAL SHAREHOLDER RETURN (TSR) EXOR Share price (€) TSR (2009 – 2018YTD1) : 1,071% (~30% CAGR) €63.35 SHARE PRICE DIVIDENDS APPRECIATION DISTRIBUTED2 994% €700mn €5.79 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 EXOR’s share price performance has been driven both by NAV inc
Slide 9: Businesses
INVESTOR AND BUSINESSES ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 9
Slide 10: EXOR's Main Businesses (1/2)
EXOR’S MAIN BUSINESSES (1/2) COMPANY 2017 HIGHLIGHTS FUTURE DEVELOPMENTS • DOUBLED MARKET CAP • 2018-22 PLAN • FROM CASH BURNER TO CASH PRODUCER • CEO SUCCESSION • MAGNETI MARELLI 34% of GAV • GOOD UNDERWRITING RESULTS EVEN IN THE THIRD • CONTINUE TO STRENGTHEN HIGHEST INSURED LOSS YEAR ON RECORD TH
Slide 11: EXOR's Main Businesses (2/2)
EXOR’S MAIN BUSINESSES (2/2) COMPANY 2017 HIGHLIGHTS FUTURE DEVELOPMENTS • ALL BUSINESS LINES PROFITABLE (~20% INCREASE IN • CEO SUCCESSION OPERATING PROFIT AND ~40% IN NET INCOME) • 45% NET DEBT REDUCTION AND ACHIEVEMENT OF INVESTMENT GRADE RATING 15% of GAV • 10TH LARGEST FOOTBALL CLUB GLOBALLY BY
Slide 12: Gross Debt
INVESTOR AND GROSS DEBT ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 12
Slide 13: Gross Debt Evolution
GROSS DEBT EVOLUTION € Bn 4.4 0.5 CREDIT 1.3 LINES 0.6 3.3 BOND 5.375% 0.5 2017 0.4 TERM LOAN 0.3 2018 0.5 2.5 BONDS 2.2 31-Mar-16 Disposal of Almacantar Financial investment 31-Dec-17 proceeds and free cash LTV ratio1: 28% flow 14% • In 2017 we continued to focus on deleveraging, reducing total deb
Slide 14: Gross Debt Breakdown
GROSS DEBT BREAKDOWN DEBT COMPOSITION1 DEBT MATURITY PROFILE2 €750 Public Private €650 bonds placements €550 58% 41% €500 €200 €200 €150 $170 Bank debt ¥10,0003 1% 20192020 2022 202420252026 2028 2031 2038 Gross debt = €3,269mn All figures are expressed in millions and in the original currency of is
Slide 15: Debt Management
DEBT MANAGEMENT KEY METRICS APPROACH • Keep LTV below 20% LOAN-TO-VALUE (LTV) • Demonstrated ability to restore the ratio RATIO when it went above 20% after acquiring PartnerRe through an all-cash deal AMOUNT OF DEBT • Monitor our debt levels relative to the value of our assets, but also in absolute
Slide 16: Board of Directors
INVESTOR AND ANALYST BOARD OF DIRECTORS CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 16
Slide 17: Board of Directors
BOARD OF DIRECTORS 2009 2018 ▪ 17 Members ▪ 11 Members ▪ 23% Independent ▪ 54% Independent ▪ 0% Female ▪ 36% Female ▪ 60 Years old on average ▪ 50 Years old on average ▪ 2 Nationalities ▪ 7 Nationalities INDEPENDENT DIRECTORS ANNEMIEK ANTONIO JOSEPH Y. BAE MELISSA BETHELL MARC BOLLAND LAURENCE DEBRO
Slide 18: Partners Council
INVESTOR AND ANALYST PARTNERS COUNCIL CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 18
Slide 19: Partners Council
PARTNERS COUNCIL GEORGE MICHAEL JORGE PAULO NASSEF OSBORNE LARSON LEMANN SAWIRIS (CHAIR) Former British Chancellor of Chief Investment Officer Co-Founder CEO the Exchequer. BMGI 3G Capital OCI Editor London Evening USA BR EGY Standard ROB JOSEPH MIKE RUTHI SPEYER C. TSAI VOLPI WERTHEIMER President &
Slide 20: Family Businesses
INVESTOR AND FAMILY BUSINESSES ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 20
Slide 21: Family Businesses Have Out-Performed the Market Over the Long Term
FAMILY BUSINESSES (FB) HAVE OUT-PERFORMED THE MARKET OVER THE LONG TERM Last 20Y Total Shareholder Return 1,794% 1,130% Family Businesses1 Diversified Holdings2 217% MSCI World Index ($) 1) Family business defined as a company where (i) a family has a relevant voting power (20%+) or (ii) the CEO or
Slide 22: FB Have Recovered Faster After 2008 Market Downturn…
FB HAVE RECOVERED FASTER AFTER 2008 MARKET DOWNTURN… TSR Performance through 2008 market downturn (in $) 80.0% 60.0% +53% 40.0% 20.0% +3% 0.0% -20.0% -40.0% -60.0% Jun 2008 Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Family Businesses MSCI World Index Source: CIQ MAY 29, 2018 INVESTOR AND
Slide 23: …Supported by Strong Growth in Their Underlying Earnings
…SUPPORTED BY STRONG GROWTH IN THEIR UNDERLYING EARNINGS TSR components break-down (2008–2011) FAMILY BUSINESSES MSCI WORLD ($) +53% +3% 153 100 100 103 Initial Fwd EPS Fwd P/E Final Initial Fwd EPS Fwd P/E Final Dividends Dividends Value Growth Re-rating Value Value Growth Re-Rating Value Earnings
Slide 24: FB Bring Real Value
FB BRING REAL VALUE 1 A WINNING INVESTMENT STRATEGY • The evidence suggests FB deliver strong results over the long term and are well positioned to withstand market downturns • We are studying ways of creating a liquid financial instrument of high quality FB where EXOR and PartnerRe could invest in
Slide 25: Closing Remarks
INVESTOR AND CLOSING REMARKS ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 25
Slide 26: 2018 Objectives
2018 OBJECTIVES QUANTITATIVE QUALITATIVE • NAV per share in USD to outperform • Reassess our corporate culture as we the MSCI World index in USD reach EXOR’s first decade • Strengthen the governance framework • Free Cash Flow1 > Dividend outflow for EXOR companies • Loan-To-Value ratio below 20% • C
Slide 27: Q&A Session
INVESTOR AND Q&A SESSION ANALYST CONFERENCE CALL MAY 29, 2018 INVESTOR AND ANALYST CALL 27
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