Exor (EXO) H1 2024 earnings summary

Executive summary

• Net asset value (NAV) rose to €38.3 billion (€178.46/share) as of June 30, 2024, up from €35.4 billion (€164.02/share) at the start of the year, mainly driven by strong listed company performance, especially Ferrari, Philips, and Lingotto Funds.

• Net debt decreased to €3.7 billion from €4 billion, reflecting strong cash flow and dividend inflows.

• Loan-to-value (LTV) ratio improved to 8.9%–9% from 10% at the start of the year.

• Transitioned to investment entity reporting under IFRS 10 from January 1, 2024, resulting in a one-off positive impact of €11.8–€12.15 billion in the income statement.

• Strong free cash flow generation, with €1.5 billion from dividends and asset disposals, and €1.1 billion deployed into investments and buybacks.

Financial highlights

• NAV per share increased by 8.8%–9% in H1 2024, compared to 14%–14.2% for the MSCI World Index; Ferrari's share price dip impacted NAV per share near period end.

• Gross asset value (GAV) rose to €43.1 billion from €39.7 billion at January 1, 2024.

• Dividend income for H1 2024 was €1.1 billion, up from €825 million in H1 2023.

• Free cash flow was €953 million, 9.6 times the dividend paid.

• Basic EPS was €68.14, including the one-off IFRS 10 gain; diluted EPS was €66.99.

Segment performance

• Listed companies represent 80% of GAV; main growth drivers were Ferrari (+25%), Philips (+12%), and Iveco (+29%), while Stellantis (-13%) and CNH (-15%) declined.

• Increased Philips investment by €622 million, reaching 17.5% shareholding and a €1.2 billion gain since crossing 15% ownership.

• Became a long-term investor in Clarivate (10.1% shareholding, board seat); reclassified from others to companies.

• Unlisted companies' value rose by €69 million (2%), mainly from new investments in TagEnergy, Lifenet, NUO, and GEDI.

• Investments in Lingotto Funds and Ventures increased by €356 million, driven by positive fair value adjustments.