• Net Asset Value (NAV) per Share Growth: Increased by 9% in 2024.
• Ferrari Performance: Value increased by 36% in 2024.
• Stellantis Performance: Value decreased by 36% in 2024.
• Philips Performance: Value increased by 19% in 2024.
• Lingoto Investment Value: Increased by 570 million in 2024.
• Private Companies Return: Aggregate return of 5.5% in 2024.
• Lingoto Fund Return: 26% return in 2024.
• Free Cash Flow: Strong free cash flow over dividends paid in 2024.
• Dividend Inflow Expectation for 2025: Approximately 750 million.
• Management Cost: Slight reduction in 2024.
• Leverage Target: Reduced from 20% to 15%.
• Buyback Announcement: New tender offer for 1 billion.

• Warning! GuruFocus has detected 5 Warning Signs with EXXRF.

Release Date: March 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EXOR NV (EXXRF) increased its net asset value (NAV) per share by 9% in 2024, driven by strong performances from Ferrari and Philips.
• Ferrari, a key asset for EXOR NV (EXXRF), had an extraordinary year with a 36% increase in value, contributing significantly to the company's portfolio.
• Lingoto, EXOR NV (EXXRF)'s investment management company, delivered a strong performance with a 26% return on investments in 2024.
• EXOR NV (EXXRF) is focusing on long-term investments, particularly in healthcare, with significant investments in Philips and Aerie.
• The company is committed to maintaining a disciplined financial approach, reducing its leverage target from 20% to 15% to ensure financial stability.

Negative Points

• Stellantis faced operational challenges in North America, leading to leadership changes and a disappointing performance with a 36% decline in value.
• CNH Industrial experienced difficulties due to downturns in the agriculture and construction equipment markets, impacting its financial performance.
• EXOR NV (EXXRF) reported a 50% discount on its NAV, which has persisted for some time, indicating potential undervaluation concerns.
• The luxury market, including Louboutin, faced a decline in performance in 2024, affecting EXOR NV (EXXRF)'s luxury investments.
• EXOR NV (EXXRF) acknowledged that 2024 was a mixed year overall, with some companies underperforming, highlighting the need for improved performance in 2025.

Q & A Highlights

Q: What is Exor's attitude towards Ferrari shares, and what explains the 50% discount on the stock? A: John Elkann, CEO, explained that Exor's discount on NAV is seen as an opportunity to invest in themselves. The focus is on improving performance, which will naturally address the discount. Regarding Ferrari, while Exor appreciates concentration, they are mindful of not having too much concentration in one asset.

Q: Could you provide more details on the potential spinoff of Iveco's military business? A: Suzanne Heywood, COO, stated that the board of Iveco is considering a spinoff, but a formal decision has not been made. The board will consider any offers that come forward, but the spinoff is the primary path being considered.

Q: How is Exor's venture exposure being managed, and what is the situation with Louboutin? A: John Elkann, CEO, mentioned that venture exposure will be managed through Lingoto's funds, with a focus on innovation. Suzanne Heywood, COO, noted that Louboutin experienced a decline in luxury performance in 2024 but is hopeful for recovery, given its creativity and loyal customer base.

Q: How does Exor view the current macro and political environment, and what is their strategy for portfolio rotation? A: John Elkann, CEO, emphasized focusing on long-term trends, particularly in healthcare, technology, and luxury. Benoit Ribadeau-Dumas, Managing Director, highlighted the commitment to healthcare investments, focusing on productivity and prevention. Exor remains opportunistic and disciplined in its investment approach.

Q: What is Exor's approach to capital allocation and potential exits in the portfolio? A: John Elkann, CEO, and Guido de Boer, CFO, explained that Exor is disciplined in its portfolio review process, aiming for more capital per company. They are patient in seeking the right opportunities and are not driven by short-term timing for investments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.