During the conference call that followed the publication by Exor (led by CEO John Elkann and majority shareholder of Juventus, Ferrari and Stellantis among others) of the 2023 budget, Guido De Boer, the Chief Financial Officer of the Agnelli-Elkann family holding, spoke to talk about the “firepower” available to the group.
«As far as firepower goes, basically nothing has changed since the investor update we did in November, which we still have about 1.7 billion euros of liquidity not yet spent, but already allocated mainly towards Institut Mérieux for an amount slightly less than 600 million euros, 350 million euros towards Lingotto, and approximately 400 million euros towards Ventures and the remaining part of the buyback”the words of the manager during the conference call.
«In that sense, we have completely allocated our cash revenue that we are receiving, and in 2024 – unless we sell something, or if we have to use increased debt, which we do not intend to do for now -, that is basically the firepower busy. For next year we expect dividends to continue to be solid. So every year we will have approx 900 million euros of cash income: subtracting the portion of dividends to be paid (about 100 million per year, ed.) and holding costs, this provides the amount that we can, on an ongoing basis, reinvest annually without divestments”.
«For this year’s costs, there is a unique special award granted to the current President (Nitin Nohria, ed.). If you adjusted for this, essentially 2023 net recurring overhead is in line with the prior year. Therefore, we expect that in the long term the costs will be around the 30 million euros that we expect to have”.
As regards Exor’s “firepower”, based on the words of the CFO of the Agnelli-Elkann holding the figure could settle beyond 750 million of euros per year: this is in fact the value of the revenue (estimated by De Boer himself at approximately 900 million euros per year) net of expenses regarding i dividends to be paid (around 100 million per year) and the costs related to the holding (equal to around 30 million per year), for a total of approximately 770 million euros per year that can be reinvested.
