EXOR NV (EXXRF) (H1 2026) Earnings Call Highlights: EUR4 Billion Firepower and a 56% Discount to NAV

Negative Points

• EXOR NV's NAV declined by EUR1.2 billion during the period, primarily driven by a significant drop in Stellantis' share price.

• EXOR NV's total shareholder return was below NAV performance due to a widening discount, with shares trading at a substantial 56% discount to NAV.

• EXOR NV's Lingotto Intersection fund declined by EUR317 million, highlighting volatility in hedge fund investments.

• EXOR NV faces concentration risk with Ferrari representing 34% of its portfolio, though reduced from previous levels.

• EXOR NV has been patient in deploying its large cash reserves, with no major new investments in the last 18 months, potentially missing opportunities in turbulent markets.

Q & A Highlights

Q: Filippe Goossens of Degroof Petercam asked about concentration risk, noting Ferrari represents about 38-39% of Exor's GAV, and whether the company is comfortable with that level given the volatility seen in luxury brands. A: CFO Guido de Boer explained that when Ferrari reached 50% of the portfolio a year and a half ago, Exor reduced its stake via a EUR3 billion block trade because of concentration risk and elevated multiples. Today, Ferrari trades at a significantly lower multiple and represents 37-39% of GAV, far below the 50% level, so the situation is different. He added that Exor always evaluates both upside and downside of its portfolio positions.

Q: Filippe Goossens asked whether Exor would consider monetizing part of its Ferrari stake to fund an attractive new investment, thereby reducing concentration risk while raising capital. A: CFO Guido de Boer said Exor behaves like any investor: if an attractive opportunity arises, it first reviews available cash and debt headroom, and if insufficient, it would consider monetizing the least attractive asset in the portfolio. He stressed that Ferrari is an amazing company and remains highly regarded, but it is not exempt from portfolio review.

Q: Jon Perez of Kepler Cheuvreux asked about portfolio construction for the next investment, including whether healthcare, luxury, and tech remain priority sectors, how Exor thinks about long-term moats, and any timeline for deployment. A: CFO Guido de Boer said those three sectors remain areas of domain expertise but Exor is not limited to them. The company targets listed companies where it can acquire a 15-20% stake for at least EUR2 billion (about 5% of its books), acting as an active shareholder. It seeks structural tailwinds, companies with the right to win, and fit with ownership structure. He emphasized Exor is patient and in no rush to deploy, especially in turbulent times that create opportunities.

Q: Alberto Villa of Intermonte asked about Stellantis's deteriorating cash position and whether Exor, as a shareholder, has a view on a potential capital increase, as well as the commitment to Stellantis versus other investments like Ferrari. A: CFO Guido de Boer said Exor fully endorses Stellantis's announced plan and is confident in its execution. He declined to comment on any potential capital increase, saying it is a topic for Stellantis management and that he has no view on it.

Q: Alberto Villa asked about the reasons behind Lingotto's weaker performance this year compared to a very strong prior year. A: CFO Guido de Boer said there is no particular reason; hedge funds are inherently volatile, and Exor embraces volatility as a long-term investor. The Intersection fund has delivered an IRR of about 24% since inception in 2018. He also highlighted strong performance at Lingotto Horizon, which is now fully invested and entering a monetization period where value step-ups are typically seen.

Q: Filippe Goossens asked about the reference in the Chairman/CEO letter to an approval that would open the way to a potential increase in Exor's stake in Philips, and whether that fits the 15-20% large listed company framework. A: CFO Guido de Boer said the renewal of the partnership with Philips is a testament to a working investment and governance relationship. Philips previously had a 20% ownership limit, now increased to 22%, which he sees as a vote of trust. He stressed no action is imminent and no decision has been made on if or when to increase the stake.

Q: Martino De Ambroggi of Equita asked for clarification on the EUR4 billion firepower figure and whether it includes the buyback. A: CFO Guido de Boer clarified that firepower is approximately EUR4 billion, from which the EUR500 million buyback is deducted, leaving about EUR3.5 billion. The bridge: EUR1.4 billion starting cash, EUR2.7 billion expected inflows from disposals, around EUR300 million net free cash flow, and EUR300 million of commitments.

Q: Martino De Ambroggi asked whether healthcare, luxury, and tech remain the main priority sectors, or whether Exor is now more open to other sectors. A: CFO Guido de Boer said Exor is very open to other sectors and is actively considering them, provided they offer structural tailwinds and are less correlated with the existing portfolio for diversification. He noted Exor has a strong network and understanding in the three named sectors but is definitely not limiting itself to them.

Q: Martino De Ambroggi asked why, despite strong firepower over the last 18 months, no major investment has been made whether due to lack of opportunities, high prices, or uncertainty around assets like Stellantis. A: CFO Guido de Boer said Exor did not miss any transactions and is making an active choice not to deploy now. He compared Exor's patience to Berkshire Hathaway's, noting Exor's firepower as a percentage is much smaller. He expects many opportunities ahead and stressed Exor will remain disciplined, investing for the long term at good prices.

Q: Martino De Ambroggi asked for an update on Lingotto's strategy regarding third-party assets under management and contributions. A: CFO Guido de Boer said there is no update at the half year. He reiterated that Lingotto is about investment returns, not about gathering third-party AUM or generating management fee income. More information on Lingotto's overall size will be provided at the full-year results.

Q: Alberto Villa asked whether, given the numerous divestments in the first half of 2026 and afterwards, there are further divestment opportunities among Exor's listed and unlisted companies. A: CFO Guido de Boer said Exor continuously evaluates its entire portfolio as a long-term investor, always assessing whether it is the best owner for each business or whether a good opportunity exists. He gave a generic answer rather than a specific one but noted Exor has been very active on this front.

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