(AOF) – Stellantis has signed a common share repurchase agreement for the third tranche of its share repurchase program. This agreement will cover a maximum amount of 500 million euros. This third tranche will begin on September 11, 2023 and will end no later than December 11, 2023. Common shares purchased under this program will be canceled in due course.
“To date, taking into account the relevant part of the first and second tranche of share buybacks, the remaining authorization amounts to approximately 260 million shares, which is more than sufficient to cover this program share repurchase and the potential repurchase of 99.2 million shares currently held by Chinese partner Dongfeng Corporation, as announced on July 15, 2022,” Stellantis explained.
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Key points
– Sixth largest automotive group in the world – 3rd American with 11% market share and 2nd European with 18%, born in January 2021 from the Peugeot-Fiat Chrysler Group merger;
– Turnover of €179.6 billion achieved under 14 brands – Alfa Romeo, Chrysler Citroën, DS, Jeep, Opel, Peugeot, etc. -, mainly in North and South America and Europe;
– Business model adapting the group to the new uses of motorists and the electrification of vehicles (global positions in electric vehicles) via digital transformation, internal culture of performance (high industrial competitiveness) and social responsibility;
– Capital with 4 main shareholders: the Agnelli family holding company Exor for 14.4%, the Peugeot family for 7.2%, the Chinese Dongfeng for 5.6% and BPI France for 5.66%, John Elkann chairing the 11-member board of directors with Carlos Tavares serving as general manager;
– Healthy financial situation: €61.3 billion in available industrial liquidity and €61.3 billion in equity, compared to a debt of €34 billion.
Challenges
“Dare forward 2030” strategic plan:
– maintaining a balance point of less than 50% of billings and operating margins of more than 2 figures,
– doubling of revenues including a quadrupling in the high end, ¼ generated outside Europe and North America (€20 billion in China) and 1/3 derived from online sales,
– software strategy of 20 billion turnover and around 40% gross margin;
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Innovation strategy based on 4 pillars:
– electrification: 100% electric vehicles (BEV) sold in Europe and 50% in the United States in 2030
– hydrogen fuel cells: increase in battery capacity to 400 GWh,
– intelligent vehicles: more than 30 billion euros by 2025 in software and electrification, with deployment from 2024 of 3 platforms powered by artificial intelligence on the 4 future vehicle platforms,
– autonomous driving: participation in the European L3 Pilot t Hi_Drive projects,
– organized into a collaborative ecosystem, with more than 160 co-financed projects and more than 1,000 partners, academies in digital & data and electricity, 8 dedicated hubs and a €300 million venture capital fund for cutting-edge technologies ;
– Environmental strategy of carbon neutrality in 2038 via a 50% reduction in 2030 vs 2021:
– new circular economy division targeting €2 billion in turnover in 2030,
– specialized investments – “sustainable” Los Azules copper mine in Argentina, geothermal energy for German sites, etc.,
– Integration of the Share now specialist -5 million customers worldwide;
– Securing the battery ecosystem: 5 giga-companies in Europe and the United States and vertical integration of raw materials.
Challenges
– Confirmation of the resumption of semiconductor supplies;
– Spin-off of the strategic partnership with Archer in the production of electric vertical take-off and landing (eVTOL) aircraft;
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Advances in financing activities in the United States and Europe, with high profitability, and continued strong growth in global sales of electric vehicles, reinforced by 9 launches in 2023;
– After a 14% increase in revenues on 1
er
quarter, confirmation of the 2022 objective of a 2-digit operating margin and positive free cash flow.
– 2022 dividend of €1.34 and share buyback for €1.5 billion. .
A paradoxical performance
Data from the firm EY highlights that the performance of the world’s top 16 manufacturers was particularly high in 2021. While the average margin fell for three years in a row, going from 6.3% in 2017 to only 3.5% in 2020. , this margin stood at 8.5% in 2021. This level constitutes a record for ten years. However, the context was particularly turbulent for manufacturers, faced with unprecedented shortages of components. Global sales fell by 14% in 2020, the year of the health crisis, to rebound by only 5% in 2021. However, last year, players were able to reap the benefits of their efforts on the structure of their fixed costs .