Q2 2026 Exor NV Earnings Call

September 23, 2026

Speaker #2: Welcome, and thank you for joining Exor's half-year 2026 results conference call. Please note that the presentation materials and the related press release are available for download on Exor’s website.

Operator: Welcome, and thank you for joining Exor's Half Year 2026 Results Conference Call. Please note that the presentation materials and the related press release are available for download on Exor's website, www.exor.com, under the Investors and Media Financial Results section. Any forward-looking statements made during this call are covered by the safe harbor statement included in the presentation material. As a reminder, all participants are in a listen-only mode. Later, there will be a brief question and answer session. Please note that this conference is being recorded. At this time, I would like to turn the conference over to Exor's Chief Financial Officer, Guido de Boer. Sir, you may begin.

Speaker #2: www.exor.com, under the "Investors and Media Financial Results" section. Any forward-looking statements made during this call are covered by the Safe Harbor statement included in the presentation material.

Speaker #2: As a reminder, all participants are in listen-only mode. Later, there will be a brief question-and-answer session. Please note that this conference is being recorded.

Speaker #2: At this time, I would like to turn the conference over to Exor's Chief Financial Officer, Guido de Boer. You may begin.

Speaker #3: Thank you for opening this call, and welcome, everyone, to the half-year 2026 results call. Exor has two main highlights that we would like to present to you today.

Guido de Boer: Thank you for opening this call, and welcome all to the Half Year 2026 Results Call, Exor. Two main highlights that we would like to present to you today. We announced last year that we would progress with simplifying our portfolio, and we've progressed at speed with doing that. The most sizable one, Iveco, you've all followed closely, where earlier in the half-year, the sale of the defense business completed to Leonardo, and also a few weeks ago, CNH formally launched its tender offer for Iveco with closing to happen in 2 months.

Speaker #3: We announced last year that we will progress with simplifying our portfolio, and we've progressed at speed with doing that. The most sizable one, Iveco, you've all followed closely, where earlier in the half-year, the defense business completed with Leonardo. Also, a few weeks ago, Tata formally launched its tender offer for Iveco, with closing anticipated in two months.

Speaker #3: Also, during the period, we completed the divestments of JD Lightnet and Nuro, and I'm pleased to tell you that in the past days we signed an agreement to sell our stake in Welltech, where we've owned the company through a business cycle, managing to run that business in a very good way, with a price which will be substantially in line with what we put in our fair value balance sheet.

Guido de Boer: Also, during the period, we completed the divestments of GEDI, Lifenet, and NUO. I am pleased to tell you that the past days we signed an agreement to sell our stake in Welltec, where we've owned the company through a business cycle, managing to run that business in a very well way with a price which will be substantially in line with what we put in our fair value balance sheet, which returned a MOIC of 2.4 times, and we expect that to close in the H1 2027. That leaves us in an extremely strong position in turbulent times and leaves us in a good position to benefit from those turbulent times with a balance sheet that is extremely solid with EUR 4 billion of deployable cash approximately. To give you the bridge of that, we started the year of EUR 1.4 billion of cash.

Speaker #3: Which returned an MOIC of 2.4x. We expect that to close in the first half of 2027. That leaves us in an extremely strong position in turbulent times and puts us in a good position to benefit from those turbulent times.

Speaker #3: With a balance sheet that is extremely solid, with approximately $4 billion of deployable cash. To give you the bridge on that, we started the year with $1.4 billion of cash.

Speaker #3: The proceeds from these divestments and some other divestments, like reinsurance vehicles and distributions from the French arm, deliver around $2.7 billion of proceeds. And then, with some net cash inflow from dividends and some capital calls we made for Ligotto, we'll end up with approximately $4 billion of cash.

Guido de Boer: The proceeds from these divestments and some other divestments like reinsurance vehicles and distributions from rental arm deliver around EUR 2.7 billion of proceeds. Then with some net cash inflow from dividends and some capital calls we made for Lingotto, we'll end up with approximately EUR 4 billion of cash, of which we'll use half a billion in the buyback to execute in 6 months, and we'll speak a bit further about that later in the call. Moving on to the key figures. During the period, our NAV declined by EUR 1.2 billion. We'll go into the detailed sources of changes from. While our loan to value strengthened quite a bit, obviously, with the increase in cash position. NAV per share fundamentally moved in line with our NAV as we did not do buyback in the period.

Speaker #3: Of which we'll use $500 million in a buyback to execute it in the next six months, and we'll speak a bit further about that later in the statement.

Speaker #3: So, moving on to the key figures. During the period, our NAV declined by $1.2 billion. We'll go into the detailed sources of changes performed.

Speaker #3: While our NAV loan-to-value strengthened quite a bit, obviously with the increase in cash position, NAV per share fundamentally moved in line with our NAV, as we did not.

Speaker #3: Buyback in the period. And our total shareholder return was below that because of a widening of this composition as our portfolio changed on a few important items.

Guido de Boer: Our total shareholder return was below that because of the widening of this. Composition of our portfolio changed a few important items. Ferrari strengthened a bit from 32% to 34%. An important mover was CNH as well with a very strong performance in the period, moved from 8% to 10%. Obviously, also cash up to 6% during the period. If we then move to the breakdown of the change in GAV, there are a lot of numbers on this slide. The key one that explains the performance in this period is the change in value by listed company. We will break down all the other buckets in detail. We want to be extremely transparent and show you all the levers of performance.

Speaker #3: Ferrari strengthened a bit, moving from 32 to 34. An important mover was CNH as well, with a very strong performance in the period, moving from 8% to 10%.

Speaker #3: And obviously, also cash up to 6% during the period. If we then move to the breakdown of the change in GAV, there's a lot of numbers on this slide.

Speaker #3: The key factor that explains the performance in this period is the change in value for our listed company. We'll break down all the other buckets in detail.

Speaker #3: So we want to be extremely transparent and show you all the levers of performance, so we'll dive into that a bit further. But all of them led, in the period, to an increase in cash and cash equivalents from $1.4 billion to $2.2 billion.

Guido de Boer: We will dive into that a bit further, but all of them left in the period, an increase from cash and cash equivalents from EUR 1.4 billion to EUR 2.2 billion. As mentioned, from EUR 300 million of investments largely behind the commitment to Lingotto, around half a billion of disposals, the dividend we did, and in other changes, the EUR 676 million is the dividend inflow that we had less expenses. We then move to the core bucket of investments that we have are listed companies. There you see the key driver of our performance was a strong decline in the share price of Stellantis during the period. The other three big companies almost performed well, with a notable mention for CNH. Iveco seems like a weak performer here. We would like to note that they distributed EUR 427 million of special dividend following the divestment of Leonardo.

Speaker #3: As mentioned, from €300 million of investments, largely behind commitment at Lingotto, around half a billion of disposals, the dividend we did, and in other changes. €676 million is the dividend inflow that we had, less expenses.

Speaker #3: So if we then move to the core bucket of investments that we have, our listed companies, there you see the key driver of our performance was a strong decline in the share price of Stellantis during the period.

Speaker #3: The other three big companies all performed well, with a notable mention for CNH. Iveco seems like a weak performer here; I would like to note that they distributed a €427 million special dividend following the divestment of Leonardo.

Guido de Boer: For TSR, they showed a strong green performance. Eventus and Clarivate were weak during the period. Via Transportation, which recently IPO'd, and they showed similar trends of many US tech companies that IPO and weakened, have for now since rebounded, and its underlying performance, strong results. If we could then move on to unlisted companies. We disposed in the period, GEDI and NUO, and after the period, we also sold Lifenet and Welltec, as I just mentioned. In total, around EUR 900 million of reduction of these unlisted companies and shifting more to a listed portfolio. The change in value, you see Institut Mérieux. We will speak later also about the direct holding in bioMérieux, because the change in value of Institut Mérieux is largely driven by the change of the listed bioMérieux. Then moving to Lingotto and others.

Speaker #3: So, for TSR, they showed a strong green performance. Juventus and Clarivate were weak during the period. Via Transportation, which recently IPO'd, showed a similar trend to many U.S. tech companies that IPO'd and then weakened.

Speaker #3: And Absent has now since rebounded and its underlying performance shows strong results. So if we then move on to unlisted companies, we disposed in the period JD and Nuro, and after the period we also sold LifeNet and Welltech, as I just mentioned.

Speaker #3: So, in total, around $900 million of reduction of these unlisted companies and shifting more to a listed portfolio. The change in value you see instantly there—we'll speak later also about the direct holding in Biomed here—because the change in value has instantly largely driven the change in value.

Speaker #3: Of the listed Biomed here, then moving to Lingotto and others, the Intersection fund declined by approximately—you might recall that last year they went up $1.2 billion.

Guido de Boer: The Intersection fund declined by EUR 317 million, approximately. You might recall that last year they went up EUR 1.2 billion. This is a logical volatility that lies in the market and very confident. Given that they have never had a down year before, they will also strive to post positive in these months. Lingotto Horizon was a good positive surprise, where they have one investment in their portfolio, which saw a unicorn round. Because we are one of the early investors, that shows a very nice uplift there. Value depth portfolio and the others moved steadily during the period. The investments we did were existing commitments for Horizon Innovation and Mosaic, and we invested in a very promising new hedge fund talent that is starting a new hedge fund with a capital of EUR 200 million that is deployed in this period.

Speaker #3: So this is a logical volatility that we'll have in the market, and we're very confident, even though they've never had a down year before. They'll also drive to a positive in these months.

Speaker #3: Lingotto Horizon was the good positive surprise, where they have one investment in their portfolio which saw a unicorn round. Because we're one of the early investors, that shows a very nice uplift of value.

Speaker #3: That portfolio, and the others, moved steadily in the period. The investments we did were existing commitments for Horizon Innovation and Mosaic. And we invested in a very promising new hedge fund talent that's starting a new hedge fund with capital of $200 million that's deployed in this period.

Speaker #3: Then we have the bucket of other assets, which at the start of the period amounted to $2.3 billion. We've been disposing of quite a bit of the assets in that category as well, and that's an ongoing process we plan to continue.

Guido de Boer: Then we have the bucket of other assets, which before, at the start of the period, amounted to EUR 2.3 billion. We have been disposing quite a bit of assets in that category as well, and that is an ongoing process we plan to do. Key proceeds in the funds managed by third parties were EUR 55 million of reinsurance vehicles, still left over from the PartnerRe disposal, and EUR 38 million of distributions from Aura Global, the former Exor Ventures arm. Other assets were loans extended to GEDI, and as part of the sale of GEDI, these were also. On the changes in value, also on the venture capital arm, they have made investments in some of the early AI companies, both in AI businesses themselves as well as

Speaker #3: Key proceeds in the funds managed by third parties were $55 million of reinsurance vehicles, still leftover from the partner re-disposal, and $38 million of distributions from Aura Global, the former XR Ventures.

Speaker #3: Other assets were loans extended to JD, and as part of the sale of JD, these were also on the changes in value. Also, on the venture capital arm, they've made investments in some of the early AI companies, both in AI businesses themselves as well as in infrastructure.

Speaker #3: And these all look to be unicorn investments that's driving a strong upward revision of the valuation of Aura Global. Listed companies are down by $237 million, $180 million of that is related to Biomed here, and also Forvia, on the back of the weakness in automotive, like I mentioned from Stellantis.

Guido de Boer: These all look to be unicorn investments, and I think that is driving a strong upward revision of the valuation of Aura Global. Listed companies, down by 237, EUR 180 million of that is related to bioMérieux and also Forvia on the back of the weakness in automotive, like I mentioned. Stellantis was down 50, which explains the grand result of that change. So that is for a tour de raison of the performance of our portfolio, and gladly answering further questions in full. As I mentioned, the change in cash and cash equivalents, the breakdown I showed you at a high level before, EUR 861 million of dividends. We received a bit more of dividends, but we chose to take half of the dividend of Philips in shares. So that you will not see here in the cash and cash equivalents, but that explains the bridge between dividends and dividend actually received.

Speaker #3: Was down 50. The grand majority of that change. So that's a tour d'horizon of the performance of our portfolio. And I'll gladly answer further questions at the end of the call.

Guido de Boer: So that is for a tour de raison of the performance of our portfolio, and gladly answering further questions in full. As I mentioned, the change in cash and cash equivalents, the breakdown I showed you at a high level before, EUR 861 million of dividends. We received a bit more of dividends, but we chose to take half of the dividend of Philips in shares. So that you will not see here in the cash and cash equivalents, but that explains the bridge between dividends and dividend actually received.

Speaker #3: As I mentioned, the change in cash and cash equivalents—the breakdown I showed you at a high level before—$861 million of dividends. We received a bit more in dividends, and we chose to take half of the dividend of Philips in shares.

Speaker #3: But that, you won't see here in the cash and cash equivalents, but that explains the bridge between dividends and dividends actually received. The disposals you see here that we just mentioned—investments and investee shareholder distributions—equal dividends in this period.

Guido de Boer: The disposals you see here that we just mentioned, investment and shareholder distributions equal dividends in this period. Given our sizable cash position, we also repaid one of our private placements, just to make sure we treat our investment interest returns as efficiently as possible, and these borrowings were carrying a higher interest rate than from our cash position. So that is why we prepaid debt and then we took onto the cash. On the debt side, not much to report as I like it, being prudent on our debt position. So we have a debt position of EUR 3.7 billion, in line with what we had last year. Maybe see a bit of movement in other financial liabilities, EUR 140 million. That is just the timing of an FX transaction we did, which started at the end of the period and completed on the first day of July. So that is an accounting entry.

Speaker #3: Given our sizable cash position, we also repaid one of our private placements, just to make sure we treat our investment interest returns as efficiently as possible.

Speaker #3: And these borrowings were carrying a higher interest rate than our cash position, so that's why we repaid them. We ended the half year with $2.2 billion of cash.

Speaker #3: On the debt side, not much to report, as I like it; being prudent on our debt position. So, we have a debt position of $3.7 billion.

Guido de Boer: On the debt side, not much to report as I like it, being prudent on our debt position. So we have a debt position of EUR 3.7 billion, in line with what we had last year. Maybe see a bit of movement in other financial liabilities, EUR 140 million. That is just the timing of an FX transaction we did, which started at the end of the period and completed on the first day of July. So that is an accounting entry.

Speaker #3: In line with what we had last year, you maybe see a bit of old movements in other financial liabilities at €140 million. That's just the timing of an FX transaction we did, which started at the end of the period and completed on the first day of July.

Speaker #3: So that's an accounting entry. The bottom line number is $3.7 billion. We have no redemptions anymore in 2026, nor in 2027. So, in these turbulent times on the debt and capital markets, I'm happy that we are fully funded on that side, and the first redemption will follow in 2028 with a very well-spread out maturity profile.

Guido de Boer: The bottom line number is EUR 3.7 billion. We have no redemptions anymore in 2026, nor in 2027. So in these turbulent times in the debt and capital markets, happy that we are fully funded on that side, and first redemption to follow in 2028 with a very well spread out maturity profile for the coming next 12 years. So that is that on the debt side. Let me now turn to the capital allocation decisions we took in the board yesterday, doing a 500 on market buyback program. We will execute that in the next six months. So you will see also in the announcement that we are very explicit that both because the shares trade at a substantial discount to our NAV and do not reflect our assessment of the intrinsic value of our portfolio, we made this decision.

Speaker #3: For the coming next 12 years. So that's that on the debt side. Let me now turn to the capital allocation decisions we took in the board yesterday.

Speaker #3: During a $500 million on-market buyback program, and we'll execute that in the next six months. You'll see also in the announcement that we are very explicit that both because the shares trade at a substantial discount to our NAV, and don't reflect our assessment of intrinsic value for the portfolio, we made this decision.

Speaker #3: We also said before we do this because it's at a substantial discount to our NAV, because we feel that this is a good resource allocation, investing in our portfolio, which we like.

Guido de Boer: We also said before we do this, because it is at a substantial discount as our NAV, because we feel that this is a good resource allocation. Investing at our portfolio, which we like, at half of the cost is an investment that makes a lot of sense. We also chose to make the statement a bit stronger because I think we are actually in a triple whammy situation of the discount is at a very high level. At 56% is a long time that we reached that. Our companies are at depressed levels, and we have a cash position that is well utilized. So we feel this is part of our toolbox, but also a part of our ongoing toolbox that we continuously evaluate to do. It is not an opportunistic transaction.

Speaker #3: At half of the cost, it's an investment that makes a lot of sense. We also chose to make the statement a bit stronger, because I think we are actually in a triple whammy situation: the discount is at a very high level, 56%. That is long-term, that we reset.

Speaker #3: Our companies are at depressed levels, and we have a cash position that is well utilized. So we feel this is part of our toolbox, but also part of our ongoing toolbox that we continuously evaluate to do.

Speaker #3: It's not an opportunistic transaction. We also chose not to do this as a tender offer, but on-market. The program has started today and will continue until the full-year results.

Guido de Boer: We also chose not to do this as a tender offer on the market, a program which has started today, and which will continue until the full year results in six months. It is important for us because we are committed to driving NAV per share growth as we have always done, outperforming both on an absolute and relative basis. As I mentioned, buybacks are and will remain a critical part of our capital allocation. So with those closing remarks, I would love to hand it over to the Q&A.

Speaker #3: In six months, it's important for us because we are committed to driving NAV per share growth, as we've already done, outperforming both on an absolute and relative basis.

Speaker #3: And as I mentioned, buybacks are, and will remain, a critical part of our capital strategy. So with those closing remarks, I would love to hand it over to the Q&A.

Speaker #1: Thank you. We will now begin the question and answer session. If you have a question, please press star, then one, and one on your touch-tone phone.

Operator: Thank you. We will now begin the question and answer session. If you have a question, please press star then 1 and 1 on your touch tone phone. Once again, if you have a question, please press star then 1 and 1 on your touch tone phone. Please stand by while we compile the Q&A queue. Thank you. We will now take the first question. Please stand by. First question is from Alberto Villa from Intermonte. Please go ahead.

Speaker #1: Once again, if you have a question, please press star, then one, and one on your touch-tone phone. Please stand by while we compile the Q&A queue.

Speaker #1: Thank you. We will now take the first question. Please stand by. The first question is from Alberto Villa at Intermonte. Please go ahead.

Alberto Villa: Hi, thanks for taking my questions. I have actually two. One is related to the situation at Stellantis. There is a plan and a recovery expected in Q4 and the coming years, but the situation in terms of cash of the company has deteriorated. So I was wondering if there is a scenario in which Stellantis might need to raise cash. What is the position of Exor as a shareholder on that. I have read there is a lot of commitment in the report on some investments like Ferrari and so on. I was wondering, what is the commitment on Stellantis. The second question is on the performance of Lingotto, was very positive last year, not so positive this year. I was wondering if there is any specific reason behind that. Thank you very much.

Speaker #2: Hi, thanks for taking my questions. Actually, I have two. One is related to the situation at Stellantis. There is a plan, and a recovery is expected in the fourth quarter and in the coming years.

Speaker #2: But the situation, in terms of cash, at the company has deteriorated. So, I was wondering if there is a scenario in which Stellantis might need to raise cash.

Speaker #2: What is Exor's position as a shareholder on that? I've read there is a lot of commitment in the report on some investments, like Ferrari and so on.

Speaker #2: I was wondering, what is the commitment on Stellantis? The second question is on the performance of Benghotta. It was very positive last year, not so positive this year.

Speaker #2: I was wondering if there is any specific reason behind that. Thank you very much.

Speaker #3: All right. Thanks, Alberto, for this good question. On Stellantis, we fully endorse the plan that has been announced by the management, and we're very confident in their execution of it.

Guido de Boer: All right. Thanks, Alberto, for these good questions. On Stellantis, we fully endorse the plan that has been announced by the management. We are very confident in the execution of it. It is an uncertain market. How they will do on their cash position and their capital increase, I am not aware of any of those plans, and honestly, also not really a question I can answer. These are more topics to raise to Stellantis management. No view on these topics. Lingotto, I think no particular reason. The performance last year was very strong on the back of the hedge fund. Hedge funds have volatility, and we are very happy as a long-term investor to embrace volatility if the long-term performance is great. This fund has returns since inception, I think an IRR of 24% is calculated. Those numbers since 2018, a stellar performance.

Speaker #3: It's an uncertain market. How they'll do on their cash position in the capital increase, I am not aware of any of those plans. And honestly, it's also not really a question I can answer. These are more topics to raise to Stellantis management.

Speaker #3: So, no view on these topics. Lingoto, I think, no particular reason. The performance last year was very strong from the back of the hedge fund.

Speaker #3: Hedge funds have volatility, and we are very happy, as long-term investors, to embrace volatility if the long-term performance is great. This fund has returned, since inception, I think, an IRR of 24%.

Speaker #3: Calculate those numbers since 2018. A stellar performance. So, if there is a blip in one month, there's no concern at all. This is the volatility that's inherent with such a strategy.

Guido de Boer: If there is a blip in one month, there is no concern about. This is the volatility that is inherent with such a strategy. For Intersection, that is just par for the course for the type of strategy that it is. I was very encouraged to see the strong performance of Horizon. Horizon is a fund that invests in private investments. It is now fully invested in monetization period. That is usually the moment where you start seeing the large value step-ups. Seeing our investors at Lingotto delivering on this is very encouraging. I hope this answers your questions, Roberto.

Speaker #3: So, for Intersection, that's just par for the course for the type of strategy that it is. I was very encouraged to see the strong performance of Horizon.

Speaker #3: Horizon is a fund that invests in private investments. It's now fully invested and in the monetization period. So that's usually the moment when you start seeing the large value step-ups.

Speaker #3: And seeing our investors at Lingotto delivering on this is very encouraging. So, I hope this answers your questions, Alberto.

Speaker #2: Okay, thank you. If I can add an additional one: you performed various divestments in the first part of 2026 and also afterwards. I was wondering if there is any opportunity for further divestments between your listed and unlisted companies.

Alberto Villa: Okay. Thank you. If I can, an additional one. You performed various divestments in H1 2026 and also afterwards. I was wondering if there is any opportunity for further divestments between your listed and unlisted companies. Thank you.

Speaker #2: Thank you.

Speaker #3: Yeah, we're also— we're always evaluating our portfolio, and we've mentioned that in previous calls. We always look at all of our investments. We're a long-term investor.

Guido de Boer: Yeah. We are always evaluating our portfolio, and mentioned that in previous calls. We always look at all of our investments. We are a long-term investor, so we are not going to invest in divesting all the time. But we always look at, are we the best owner of these businesses for the long term, or is there a good opportunity to run a? That is always the case. I hope you understand I give a generic answer rather than a specific one. But as you have seen, we have been very action-oriented.

Speaker #3: So, we're not going to invest in the rest of the time, but we always look at, are we the best owner of these businesses for the long term?

Speaker #3: Or, is there a good opportunity? That's always the case. I hope you understand—I give a generic answer rather than a specific one.

Speaker #3: But you've seen that we've been very action-oriented.

Speaker #2: Thank you.

Alberto Villa: Thank you.

Speaker #3: All right. Thank you.

Guido de Boer: All right. Thank you.

Speaker #1: Thank you. We will now take our next question. This is from John Perez from Kepler Shubra. Please go ahead.

Operator: Thank you. We will now take our next question. This is from Jon Pérez from Kepler Cheuvreux. Please go ahead.

Speaker #2: Hi, John Perez from Kepler Shubra. Thank you for the presentation. Just one question from me on portfolio construction, in the context of the next investment.

Jon Pérez: Hi. Jon Pérez from Kepler Cheuvreux. Thank you for the presentation. Just one question from me on portfolio construction in the context of the next investment. The press release mentioned about EUR 4 billion of cash rates to be deployed. In the past, I think I recall the sectors that were mentioned were healthcare, luxury, and tech. I would be keen to hear about how you think of portfolio construction, considering the rest of the current portfolio, and whether there are specific thematics that you would be happy to get exposure to with your next investment, how you think about a long-term moat in the current environment, and whether there are specific risk factors that you would like to avoid. Any clue on the timeline would be welcome as well. Thank you.

Speaker #2: So, the press release mentioned about $4 billion of cash ready to be deployed. In the past, I think I recall the sectors that were mentioned were healthcare, luxury, and tech.

Speaker #2: I would be keen to hear about how you think about portfolio construction, considering the rest of the current portfolio, and whether there are specific thematics that you would be happy to get exposure to with your next investment.

Speaker #2: How do you think about a long-term moat in the current environment? And are there specific risk factors that you would like to avoid? Any clue on the timeline would be welcome as well.

Speaker #2: Thank you.

Speaker #3: Thank you, John, for these thoughtful questions. So, portfolio construction is obviously a critical part of what we do. During the partner disposal, we said these are the three sectors.

Guido de Boer: Thank you, Jon, for these thoughtful questions. Portfolio construction is obviously a critical part of what we do. During PartnerRe disposal, because these are the three main sectors. They are still sectors that we like a lot and where we have a lot of domain expertise, and where we know where the hidden gems are hidden. It does not mean that we will only invest in these sectors. What we are primarily looking at is a large list of companies in which we can acquire a shareholding of 15% to 20%, for an investment of at least EUR 2 billion. EUR 2 billion being approximately 5% of our books as a company. The thinking of that is we want to have the right level of diversification in our portfolio. At 5%, an investment makes an impact. That is why we have a lower threshold of EUR 2 billion for Exor.

Speaker #3: There are still sectors that we like a lot, where we have a lot of domain expertise, and where we know where the hidden gems are hidden.

Speaker #3: But it doesn't mean that we'll only invest in these sectors. What we're primarily looking at is large listed companies in which we can acquire a shareholding of 15% to 20%.

Speaker #3: For an investment of at least $2 billion—$2 billion being approximately 5% of our gross asset value. So, the thinking behind that is we want to have the right level of diversification in our portfolio.

Speaker #3: At 5%, it's an investment that makes an impact, so that's why we have a lower threshold of $2 billion for these investments. But it's largely in listed companies where we have an influence similar to what we have in our other listed companies.

Guido de Boer: It is largely in listed companies where we have then an influence similar as we have in our other listed companies. It is what can we contribute as a shareholder? Being an active shareholder where we can add value, either in turbulent times, to offer long-term stability to the company or in companies that go very well, but need a shareholder also to keep the management sharp and driving long-term performance. That is overall what we look at. Then we look at individual sectors where there is structural tailwinds, and within those sectors, companies that have the right to win, and where there is also a fit with the ownership structure as we do and the way we drive value creation with this. That is, in general, our philosophy around searching for the next large opportunity. We are patient shareholders, but we are also patient investors.

Speaker #3: And it's: what can we contribute as a shareholder? Being an active shareholder, where we can add value either in turbulent times to offer long-term stability to the company.

Speaker #3: Or in companies that are doing very well, but also need a shareholder to help keep management sharp and focused on driving long-term performance. So that's overall what we look at.

Speaker #3: And then we look at individual sectors where there's a structural tailwind, and within those sectors, companies that have a right to win. We also consider whether there's a fit with the ownership structure that we use and the way we drive value creation with those companies.

Speaker #3: So that's, in general, our philosophy around searching for the next large companies. We are patient shareholders, but we're also patient investors. And as I mentioned in my opening, these are quite turbulent times.

Guido de Boer: As I mentioned in my opening, these are quite turbulent times, and turbulent times bring opportunities for the patient. We are not in a rush to deploy. It is about finding the right company at the right price, at the right time. I will not give any timing on when we at Exor make the next investment. Obviously sooner rather than later, obviously we want to deploy capital, but we are patient to wait for the right one. I hope that answered your questions, Jon.

Speaker #3: And turbulent times bring opportunities for the patient. So we're not in a rush to deploy. It is about finding the right company at the right price.

Speaker #3: It's the right time. So, I will not give any timing on when we envisage the next investment. Obviously, sooner rather than later. Obviously, we want to deploy capital.

Speaker #3: But we are patient and willing to wait for the right opportunity. So I hope that answered your questions, John.

Speaker #2: Yes. Thank you very much.

Jon Pérez: Yes. Thank you very much.

Speaker #3: Thank you.

Guido de Boer: Thank you.

Speaker #1: Thank you. We will now take our next question. Please stand by. The next question is from Felipe Goossens from De Groef Petercam. Please go ahead.

Operator: Thank you. We will now take our next question. Please stand by. Next question is from Philippe Goossens from Degroof Petercam. Please go ahead.

Speaker #2: Yes. Good afternoon, Guido. Thanks for taking my questions. Actually, I have two today if I may. The first one, maybe building on the previous question in terms of portfolio composition.

Filippe Goossens: Yes, good afternoon, Guido. Thanks for taking my questions. I actually have two today, if I may. The first one may be building on the previous question in terms of portfolio composition, and my question is specifically with regard to concentration risk. Today, if we look at Ferrari, it is about 39% of your GAV. So that is your largest position. You have always positioned the Ferrari investment, and I fully concur with that, as a luxury brand. It is not a car manufacturer, which is good today because we all know the challenges that the car industry is facing. So it is a luxury brand that has performed very well for you.

Speaker #2: And my question is specifically with regard to concentration risk. So today, if we look at Ferrari, it's about 39% of your NAV, so it's really your largest position.

Speaker #2: And you have always positioned the Ferrari investment—and I fully concur with that—as a luxury brand. It's not a car manufacturer, which is good today because we all know the challenges that the car industry is facing.

Speaker #2: So, it's a luxury brand that has

Speaker #4: It has performed very well for you. But at 38%, I wonder how you feel about that 38%, because if you look at some other players in the luxury brand segment today—LVMH, Hermès—if we had said at the beginning of the year these companies could be down almost 40% in market cap year-to-date, we would never have believed it.

Filippe Goossens: At 38%, I wonder how you feel about that 38%, because if you look at some other players in the luxury brand segment today, LVMH, Hermès, if we had said at the beginning of the year, these companies could be down almost 40% in market cap year to date, we would never have believed it. So it is a great brand. It is a luxury brand, but it is 38% of your portfolio. How do you think about that? If you could kind of walk us through that, in terms of how you evaluate that at the board meetings. I just would love to understand that a little bit more if you could help me here.

Speaker #4: So, it's a great brand. It's a luxury brand. But it's 38% of your portfolio. How do you think about that? If you could kind of walk us through that, in terms of how you evaluate that at the board meeting.

Speaker #4: I just would love to understand that a little bit more, if you could help me here.

Guido de Boer: Thanks, Philippe. Great. Did you have another question, or was this-

Speaker #5: Great. And did you have another question, or was this— Yes, yes, the second question, Guido. So, in the

Filippe Goossens: Yes. The second question, Guido. In the letter from your chairman or CEO, Alan, was a reference made to an approval reached with Philips, which would open the way to a potential increase in your stakeholding. If you maybe can just kind of elaborate a little bit on that, I would imagine that would be within the constraints of what you just shared before, meaning large listed companies between 15% and 20%. Does it fit within that context that we should look at that potential increase in the Philips stake?

Speaker #4: A letter from your chairman or CEO, Altman, referenced an approval reached with Philips, which would open the way to a potential increase in your stakeholding.

Speaker #4: If you could maybe elaborate a little bit on that, I would imagine it would be within the constraints of what you just shared before—meaning large listed companies between 15% and 20%.

Speaker #4: Is it—does it fit within that context that we should look at?

Speaker #5: That potential increase in the Philips stake? Yeah, no, I'll comment on that. Maybe I'll take that one. So, I think the renewal of the partnership with Philips is, I think, a testament to our investment working well and our partnership with the company working well, just adding value to the governance of Exor.

Guido de Boer: Yeah. No, I will comment on that and maybe to take the other one. I think the renewal of the partnership with Philips is, I think, a testament to our investment working well and our partnership with the company working well, just adding value to the governance of Philips. That has been evidenced also with the company opening up to increase our stake further. Previously, we had a limit of 20%, but now increased to 22%. That does not mean that there is any action now taken to increase that or that it is imminent. But we have the opportunity, and we see that as a vote of trust from Philips that they value our ownership. I would say that is the key takeaway from that investment.

Speaker #5: That has been evidenced also by the company opening up to increase our stake, our stakeholding. Previously, we had a limit of 20%, which has now increased to 22%.

Speaker #5: That doesn't mean that there is any action now taken to increase that, or that it's imminent, but we have the opportunity, and we see that as a vote of trust from Philips—that they value our ownership.

Speaker #5: So, I would say that that is the key takeaway from that investment, from that.

Speaker #4: Okay, and that would happen—that would happen in the form of open market purchases if you were to decide to increase that, or would you look at a block trade, or...

Filippe Goossens: Okay. That would happen, Guido, in the form of open market purchases if you were to decide to increase that or-

Guido de Boer: I do not know.

Filippe Goossens: if you look at the block trade or. Okay.

Speaker #5: Yeah, okay. So we have not decided anything on if and when that would happen, but first—okay. And then when we do it, we use whatever we need, but it's not on the table.

Guido de Boer: We have not decided anything on if and when that will happen. First, if, and then when we do it, we use whatever we need, but it is not off the table.

Speaker #5: Okay, fair enough. Thank you. Ferrari, I think it's a very good question. So, maybe to repeat what I said following the block trade that we did on Ferrari—$3 billion, now a year and a half ago.

Filippe Goossens: Okay, fair enough. Thank you.

Guido de Boer: Ferrari, I think it is a very good question. To repeat what I said following the block trade that we did on Ferrari at EUR 3 billion now a year and a half ago, at that time, the concentration of Ferrari was reaching 50%. At 50%, and also the multiples the company was trading, exactly what you were saying is a sizable risk. If half of our portfolio trades at this value and there is a potential for the share price to decline at such a level, it is prudent to reduce the cost. That is what we have done at the time, and these were the considerations. At this moment, the multiple at which Ferrari trades is significantly below the multiple it was trading at when we did the transaction.

Speaker #5: At that time, the concentration of Ferrari was reaching 50%. So at 50%, and also considering the multiples the company was trading at, exactly what you were saying is, it's a sizable risk.

Speaker #5: If half of our portfolio trades at this value, and there's a potential for the share price to decline to such a level, it is prudent to reduce the concentration.

Speaker #5: So that's what we've done at the time, and these were the considerations. At this moment, you know, the multiple at which Ferrari trades is significantly below the multiple it was trading at when we did that transaction.

Speaker #5: So the 30, uh, 37 or 39 percent of the gap that it represents now is still far below the 50, and also the multiple is not good.

Guido de Boer: The 37% or 39% of GAV that it represents now is still far below 50%, and also the multiple is not at the same level. It is not the same situation. But we always look at our portfolio from what is the upside, but also obviously the downside.

Speaker #5: Same with that also. And it's, it's not the same situation. But we always look at our portfolio from what is the upside, but also, obviously, the downside.

Speaker #4: Yeah, very good. Very—thanks for that clarification, Guido. Maybe just a quick follow-on, if I may. In your search for attractive additional investment opportunities as you build out your portfolio.

Filippe Goossens: Very good. Thanks for that clarification, Guido. Maybe just a quick follow-on, if I may. In your search for attractive additional investment opportunities as you build out your portfolio, if the right transaction were to present itself and you do not have sufficient liquidity to do that transaction, would you be willing to consider monetizing part of your Ferrari investment so that you would basically kill two birds with one stone? One, raise the funds needed to make a very accretive transaction, and secondly, to reduce the concentration risk in the portfolio.

Speaker #4: If the right transaction were to present itself and you didn't have sufficient liquidity to do that transaction, would you be willing to consider monetizing part of your Ferrari investment, so that you would basically kill two birds with one stone?

Speaker #4: First, raise the funds needed to make a very accretive transaction; and second, reduce the concentration risk in the portfolio.

Speaker #5: We are an investor, so we do what every investor does. If we see an attractive opportunity to invest in, we will do that, and then we'll review our sources of funding.

Guido de Boer: We are an investor, so we do what every investor does. If we see an attractive opportunity to invest in, we will do that, and then we will review our sources of funding. We first of all, look, obviously, if we have cash or still headroom on the debt side. If we do not, and we really like the new opportunity more than the least attractive one at that moment in our portfolio, we will look to monetize something in our portfolio. That is an approach that is exactly similar as any investor does. We are not different there.

Speaker #5: So, first of all, we look to see if we have cash or still have headroom on the debt side. And if we don't, and we really like the new opportunity more, then the least attractive one in our portfolio at that moment—we'll look to monetize something in our portfolio.

Speaker #5: So, that approach is exactly the same as what any investor does. We're not different there. Okay, fair enough. Thank you so much, Guido.

Filippe Goossens: Okay. Fair enough. Thank you so much, Guido. Very helpful.

Speaker #5: Very helpful. But it's not that Ferrariable. It is on top of the list. We think Ferrari is an amazing company. We're very happy. Okay.

Guido de Boer: It's not that Ferrari isn't on the list. We think Ferrari is an amazing company, and we're very happy.

Filippe Goossens: Okay. I see that. I agree with you. Okay. Thank you so much, Guido.

Speaker #4: I see that. I agree with you. Okay, thank you so much, Guido. Thank you. Thank you.

Guido de Boer: Thank you.

Operator: Thank you. As a reminder, if you would like to ask a question, please press star 1 and 1 on your touchtone phone. We will now take the next question. This is from the line of Martino De Ambroggi from Equita. Please go ahead.

Speaker #6: As a reminder, if you would like to ask a question, please press star 1 and 1 on your touchtone phone. We will now take the next question.

Speaker #6: This is from the line of Martino De Ambrogi from Equita. Please go ahead.

Speaker #5: Thank you. Good afternoon, Guido. The first is just a very quick clarification. The firepower of $4 billion—this does not include the buyback, which is on top?

Martino De Ambroggi: Thank you. Good afternoon, Guido. The first is just a very quick clarification. The firepower of EUR 4 billion, this does not include the buyback, which is on top?

Speaker #5: Um, so the firepower is $4 billion, and from that you would deduct $500 million for buyback. So after buyback, there's $3.5 billion. Okay, okay.

Guido de Boer: The firepower is EUR 4 billion, and from that you would deduct EUR 500 million for buyback. So after buyback, there is EUR 3.5 billion.

Martino De Ambroggi: Okay. So it is EUR 3.5 billion.

Speaker #5: So it's $3.5 billion, and by then we're, we're at the start of the year, so then we'll start getting dividends. and inflows again. So, but that's, uh, that's basically the capital.

Guido de Boer: And by then, we are at the start of the year, so then we will start getting dividend inflows again. So that is basically the capital. So EUR 1.4 current cash, EUR 2.7 of expected cash inflows from disposals, around EUR 300 million of net free cash flow and EUR 300 million of commitments gets you to around EUR 4 billion, less EUR 500 million is EUR 3.5 million.

Speaker #5: So, $1.4 billion of current cash, $2.7 billion of expected cash inflows from disposals, around $300 million of net free cash flow, and $300 million of commitments gets you to around $4 billion.

Speaker #5: Less than $500 million. It's $3.5 billion net. Okay. The second is a follow-up on what you commented in the past. So you are looking primarily, but not only, to healthcare, luxury, and tech.

Martino De Ambroggi: Okay. The second is a follow-up on what you commented in the past. So you are looking primarily, but not only to healthcare, luxury and tech. In luxury, in your previous calls, you mentioned it is difficult to find something interesting. Are still these three sectors your main priority, or as you mentioned, we are open to other opportunities, but as a secondary option, or always looking at these three?

Speaker #5: In luxury, in your previous calls you mentioned it is difficult to find something interesting. Are these three sectors still your main priority, or as you mentioned, are you open to other opportunities—but as a secondary option? Or are you always looking at these three?

Speaker #5: No, we're very open to other sectors, and we also are actively considering other sectors, but with the same structural tailwinds—less correlated to the current part of our portfolio—to also make sure we have diversity.

Guido de Boer: No, we are very open to other sectors, and we are also actively considering other sectors. But with the same structural tailwinds, less correlated to the current part of our portfolio, to also make sure we have diversification in the business from a sector-wise, and then finding companies that have opportunities for great returns within those sectors. So we are not bound with those sectors at all, but we do have a great network and understanding of those. But we are definitely not limiting ourselves.

Speaker #5: Diversification in business from sector-wise, and then finding companies that have opportunities for great returns within those sectors. So we're not bound by those sectors at all, but we do have a great network and understanding of them.

Speaker #5: So, but we're definitely not limiting ourselves. Okay. Looking back over the last 18 months, you already had very good firepower. So, but nothing happened.

Martino De Ambroggi: Okay. Looking back in the last 18 months, you had already had a very good firepower, but nothing happened. So I remember you mentioned the prudent and patient approach and so on, but is it because there is a lack of interesting opportunity, because the prices are too high, because you need better visibility on some of your assets, as you mentioned in the previous question? Was Stellantis the question mark for a needed eventual cash injection? So just to know what happened in the last 18 months, if you bid for something that did not materialize, or there is lack of serious opportunities.

Speaker #5: So, I remember you mentioned a prudent and patient approach and so on, but is it because there is a lack of interest in opportunity because the prices are too high? Is it because you need better visibility on some of your assets—as you mentioned in the previous question with Stellantis—and a question mark for a needed eventual cash injection?

Speaker #5: So, just to understand what happened in the last 18 months, if you—

Speaker #7: Bid for something that didn't materialize, or is there a lack of serious opportunities?

Speaker #5: So, we did not miss any transactions. We look at Berkshire Hathaway and their cash position, so our firepower in that sense is—it has a percentage.

Guido de Boer: So we did not miss any transactions. We look at Berkshire Hathaway and their cash position. So our firepower in that sense is, as a percentage, much smaller. They are also very patient. I think this is a time where there will be many opportunities. So it is an active choice of us not to deploy now. We have, obviously, potential targets. We continue to look for others, but we will remain very disciplined in putting our money to work because we invest for the long term. So we try to find a good opportunity at a good price every time. Hope this is clear, Martino.

Speaker #5: Much, much smaller. We're also very patient, and I think this is a time when there will be many opportunities. So it's an active choice for us.

Speaker #5: Not to deploy now. We have, obviously, potential targets. We continue to look for others, but we will remain very disciplined in putting our money to work.

Speaker #5: Because we invest for the long term, we try to find a good opportunity at a good price. I hope this is clear, Martino.

Speaker #5: Yeah, yeah, yeah. And the last one on Lingotto.

Martino De Ambroggi: Yeah. The last one on Lingotto. Is there any update on the strategy in terms of asset under management, third parties contributions, and these kind of things?

Speaker #7: Is there any update on the strategy in terms of assets under management, third-party contributions, and these kinds of things?

Speaker #5: No, no update there in the half-year. As I mentioned, we're very happy with the performance of— and principally, it's great that Lingotto grows assets under management.

Guido de Boer: No update there in the H1. As I mentioned, we are very happy with the performance. Principally, it is great that Lingotto grows assets under management because it gives it some scale. As you might remember, because you have been around Exor for a long time, when we announced the start of Lingotto, we invest for returns. This is not about assets under management for third parties and creating management fee income. We want to make investment returns, and that is where Lingotto has been a very strong contributor to our overall returns. But as we always do in the full year, you will see more information on the overall side of Lingotto.

Speaker #5: Because it gives it some scale. As you might remember, because you've been around Exor for a long time, when we announced the start of Lingotto, we invest for returns.

Speaker #5: This is not about assets under management from third parties and creating management fee income. We want to make investment returns, and that's where Lingotto has been a very strong contributor.

Speaker #5: Overall returns. But as we always do for the full year, you'll see more information on the overall side of Lingotto. Okay, thank you, Guido.

Martino De Ambroggi: Okay. Thank you, Guido.

Speaker #5: All right, thank you, Martino. Thank you.

Guido de Boer: All right. Thank you, Martino.

Operator: Thank you. There are no further questions at this time. I will now hand the conference back to Guido de Boer for any closing comments.

Speaker #6: And there are no further questions at this time, so I will now hand the conference back to Guido de Boer for any closing comments.

Speaker #5: Nothing from my side, except to thank you for being on this call. I'm looking forward to reading about your views in the upcoming Q3 reports.

Guido de Boer: Nothing from my side except for thanking you for being in this call and making the time, and looking forward to read about your views in the coming issue of the reports. Thank you all, and please you know where to find myself, Mike, and Niccolò in case of any questions. For the press side, Suzanne. Thank you very much and have a nice day. Bye-bye.

Speaker #5: Thank you all, and please, you know where to find myself, Mike, and Niccolò in case of any questions. For the press site, to download.

Speaker #5: Thank you very much, and have a nice day. Bye bye.

Operator: Thank you. Ladies and gentlemen, this concludes today's conference. Thank you for participating and you may now disconnect.

Browse all earnings call transcripts

Q2 2026 Exor NV Earnings Call

Request TrialDemo

Exor

Earnings