Exor, the
investment vehicle through which the Agnelli
family manages its 30.47% stake in Fiat Spa and
30.45% in Fiat Industrial, suffered a difficult
2011 and its total assets actually lost a
quarter of their value, although the company did
turn in a 504.2 million euro consolidated profit
which was significantly up on the year before.
The financial
report issued by Exor reveals that its net asset
value stood at 6,320 million euros on December
31, 2011, which adds up to a reduction of 2,044
million euros when compared to the 8,364 million
euros of assets it held on December 31, 2010.
Exor underperformed the MSCI World Index
(the global reach benchmark against which the
company measures its performance) by 19.9% last
year, although if it is compared to European
indices the underperformance was much narrower.
Exor Group
closed the year 2011 with a consolidated profit
of 504.2 million euros which compares favourably
with the previous years (2010) when a
consolidated profit of 136.7 million euros was
posted. The increase of 367.5 million euros,
says Exor, stemmed from better results reported
by subsidiaries and associates (+396.2 million
euros), higher dividends from investment
holdings (+32.1 million euros), offset in part
by lower net financial income (expenses) (-54.1
million euros) and other net changes (-6.7
million euros). Subsidiary Exor Spa was also hit
last year by a 56.2 million euro write-down at
Juventus Football Club which it holds a
controlling 63.77% stake.
In a
letter to shareholders yesterday, Exor Chairman
John Elkann said: "Despite our negative 2011 NAV
[Net Asset Value] performance we strongly
believe that the quality of the companies we own
and the ability of their leaders will allow
Exor’s NAV to continue to outperform the MSCI
World Index over the long term." He predicts
that Exor will continue to turn in a profit this
year.
Elkann also believes
that the situation Exor is facing has markedly
improved during the three months that have
passed since its 2011 financial year closed out.
"The new year began with a renewal of positive
sentiment regarding the future, and many of the
worries with which 2011 ended seemed to fade
away," he believes. "This led to greater
optimism in the world’s capital markets, with
equities rallying and the ability to issue debt
significantly improved. This scenario exceeded
my own expectations as 2011 closed. While such a
positive development is welcome, I consider it
appropriate to remain cautious, particularly
while consumption data, especially in the EU,
remains weak."
Exor's four biggest
assets (Fiat Industrial, SGS, Fiat-Chrysler and
Cushman & Wakefield) represent 83.5% of its
investment value and Elkann also hints in the
letter to shareholders that non-core assets will
be disposed of this year as the company focuses
on a reduced number of investments. "What we can
say confidently about 2012 is that it will be a
year of continuous simplification for our
organisation and our investments," he added. "I
am convinced: for us, simpler is better."
