Exor N.V.: history, ownership, mission, how it works & makes money

A Brief History of Exor N.V.

Exor N.V. was founded in 1927, originally as a holding company for the Agnelli family, known for their significant stake in Fiat Chrysler Automobiles (FCA). Over the decades, Exor has expanded its portfolio beyond automotive into several industries, including insurance, media, and real estate.

As of October 2023, Exor N.V. is headquartered in Amsterdam, Netherlands, and is listed on the Euronext Amsterdam stock exchange. The company reported a market capitalization of approximately €16 billion.

In 2009, Exor made a notable acquisition when it took control of Fiat when they held a 20% stake. By 2021, FCA merged with PSA Group to form Stellantis, one of the largest automotive manufacturers in the world, and Exor became the largest shareholder with a stake of approximately 14%.

Exor’s financial performance has been robust over the past few years. In 2022, they reported a revenue of €16.1 billion, while net income reached €1.3 billion. The company declared an annual dividend of €0.50 per share in 2023.

In addition to its automotive holdings, Exor's investments include significant stakes in the insurance sector through PartnerRe, acquired in 2016 for approximately $6.9 billion. PartnerRe is known for its robust reinsurance offerings, contributing to Exor's diversified investment strategy.

As of early 2023, Exor also held stakes in prominent companies like Juventus F.C. (approximately 63%), the well-known Italian football club, and The Economist Group (approximately 43%). These investments allow Exor to tap into various market segments, enhancing its revenue streams.

Exor has consistently focused on value creation through its investment strategy. In 2022, the company's total assets were valued at approximately €31 billion. The net asset value (NAV) has grown steadily, reflecting effective portfolio management and strategic acquisitions.

In summary, Exor N.V. has evolved significantly since its inception, marking its presence across diverse sectors while maintaining a strong influence within the automotive industry through Stellantis and various other investments.

A Who Owns Exor N.V.

Exor N.V., a prominent investment company, has a diverse ownership structure predominantly influenced by its founding family, the Agnelli family. As of the latest available data, Exor's largest shareholder is Giovanni Agnelli B.V., which is controlled by the Agnelli family. This entity holds approximately 52.9% of the voting rights in Exor.

Furthermore, the company has a corporate governance structure where other significant shareholders include the following:

Exor N.V. has a unique position within the investment landscape, holding substantial stakes in various companies across sectors, including automotive, reinsurance, and media. The firm’s key investments include:

• Fiat Chrysler Automobiles (FCA) - Out of the total equity, Exor holds approximately 14.4% ownership.
• CNH Industrial - Exor's stake stands at about 25.8%.
• Juventus F.C. - Exor owns around 63.8% of the club.
• PartnerRe - Ownership currently sits at 100% following a purchase in 2016.

In terms of financial performance, as reported in the latest earnings, Exor N.V. demonstrated a net asset value of approximately €24 billion as of year-end 2022. The company's NAV per share was reported at around €112.60.

The governance model of Exor is characterized by a board that includes several members from the Agnelli family, ensuring continuity and alignment with family interests. The board comprises 12 members, with 7 being independent, underscoring a mixed governance structure.

Exor N.V. operates with a long-term investment horizon, focusing on value creation and capital appreciation across its portfolio. The firm's strategy emphasizes enduring businesses that possess competitive advantages, enabling it to maintain substantial control over its investments while pursuing growth opportunities in innovative sectors.

The impact of its ownership structure on corporate strategy is significant, allowing Exor to leverage its connections and expertise within industries that are both traditional and contemporary.

Exor N.V. Mission Statement

Exor N.V. is an investment holding company known for its commitment to creating long-term value through its diversified portfolio. The current mission statement emphasizes a focus on sustainable growth and innovative solutions across various industries. Exor aims to strategically invest in companies that have strong potential for growth and profitability.

As of 2023, Exor's primary industries include automotive, reinsurance, and media. The company's investments are substantial, with a reported net asset value of approximately €30.3 billion as of September 30, 2023. This value reflects a diversified portfolio, with significant holdings in companies such as Fiat Chrysler Automobiles (now part of Stellantis), Ferrari, and The Economist Group.

Exor's mission is deeply intertwined with its investment philosophy, which prioritizes active stewardship and operational improvement in its portfolio companies. In 2022, Exor reported a total revenue of €11.8 billion and a net income attributable to owners of the parent of €2.3 billion, indicating robust operational performance.

Furthermore, Exor focuses on sustainable practices, which are central to its investment criteria. The company is committed to aligning its investments with environmental, social, and governance (ESG) principles. As of 2023, approximately 60% of Exor’s portfolio companies are actively engaged in sustainability initiatives, showcasing their dedication to responsible investment.

Exor N.V. operates with a long-term vision, aspiring to enhance its global presence while driving tangible value both for its shareholders and society at large. The company seeks to uphold its standards of excellence by forging partnerships that yield mutual growth, thereby reinforcing its mission statement in practice.

How Exor N.V. Works

Exor N.V. is a Netherlands-based holding company, known for its diversified investments across various sectors, including automotive, media, and technology. As of Q3 2023, Exor’s total consolidated assets were reported at approximately €34 billion.

The company’s largest investments include stakes in Ferrari N.V., Stellantis N.V., and The Economist Group. The following table illustrates the key ownership interests held by Exor as of September 2023:

Exor's investment strategy focuses on long-term value creation. For instance, in Q2 2023, Exor reported a net profit of €1.3 billion, which represented a substantial increase compared to the €678 million reported in the same period in 2022. This growth is largely attributed to strong performance from Ferrari and Stellantis.

The company employs a disciplined approach to capital allocation, investing in sectors where it sees sustainable growth potential. In 2022 alone, Exor invested approximately €1.1 billion in various technology and luxury firms, reinforcing its commitment to innovation and premium branding.

Exor's financial performance in the first half of 2023 also showed resilience, with consolidated revenues reaching €10 billion, up from €8.5 billion year-over-year. This increase is driven by robust sales from its automotive and insurance segments.

Moreover, Exor has implemented a strategic focus on sustainability, with plans to allocate €0.5 billion toward sustainable investments by 2025. The company has already made significant strides in its sustainability agenda, aiming for a 50% reduction in greenhouse gas emissions by 2030 across its portfolio companies.

Exor maintains a proactive approach to risk management, ensuring its diverse portfolio mitigates potential downturns in specific markets. As of October 2023, the company’s debt-to-equity ratio stands at 0.25, indicating a solid financial position relative to its equity base.

The company’s market capitalization as of mid-October 2023 is approximately €15.3 billion. This valuation reflects investor confidence in Exor’s strategic direction and its ability to navigate market fluctuations effectively.

How Exor N.V. Makes Money

Exor N.V. is a prominent investment company with a diverse portfolio spanning various sectors. The company primarily generates revenue through its significant stakes in a range of industries, including automotive, reinsurance, and media.

As of the third quarter of 2023, Exor reported total revenue of €12.5 billion, driven largely by its holdings in Fiat Chrysler Automobiles (now part of Stellantis) and Ferrari. These holdings represent substantial pillars of Exor’s income strategy.

Key Revenue Streams

• Automotive Sector:

  Exor's investment in Stellantis contributes significantly to revenue. In the first half of 2023, the automotive sector alone generated approximately €70 billion in revenue, with Exor’s share representing about 29% of that amount, equating to around €20.3 billion.

• Luxury Goods:

  Ferrari is another vital asset, achieving revenues of €1.7 billion in the second quarter of 2023, driven by a robust demand for luxury vehicles. Exor holds a 22.9% stake, translating to an income of approximately €388 million for the first half of the year.

• Reinsurance:

  Exor's reinsurance subsidiary, PartnerRe, delivered $1.5 billion in gross written premiums in 2022. This arm is essential for risk diversification in Exor's portfolio.

• Media and Entertainment:

  Through its ownership of The Economist Group, Exor benefits from a revenue contribution of approximately £450 million (about €525 million) annually, with digital subscriptions experiencing substantial growth during 2023.

Investment Portfolio

Exor N.V. holds strategic investments across several companies. The following table outlines Exor's key holdings as of September 2023:

Exor’s operational strategy emphasizes long-term value creation. By maintaining strategic investments in sectors with high-growth potential, Exor aligns itself to benefit from capital appreciation and revenue generation.

Recent Performance Metrics

As of Q3 2023, Exor’s net asset value stands at €32 billion, marking an increase of 10% from the previous year. The company's diversification strategy has allowed it to achieve a total return of 15% annually over the last decade.

Furthermore, the company's operating income for 2022 was recorded at €2.8 billion, which reflects a solid performance across its various holdings despite overall market volatility.

In terms of shareholder returns, Exor has consistently enhanced its dividend payouts, with a reported dividend of €1.45 per share in 2023, showcasing a commitment to rewarding its shareholders while continuing to reinvest in growth opportunities.