Stellantis launches the second phase of its share buyback plan – 06/07/2023 at 10:37 am

(AOF) – Stellantis has today announced that it has signed a share buyback agreement with an independent financial company for the second phase of its share buyback program for a maximum amount of 1.5 billion euros. was announced on February 22, 2023. This contract relates to a maximum of 500 million euros. The second phase of the program will start on June 7, 2023 and end before September 7, 2023. The ordinary shares purchased under this program will be canceled in due course .

The regular share purchase plan will be implemented based on the approval given by the general meeting of shareholders on April 13, 2023, which may be renewed or extended, up to a maximum of 10% of the share capital.

The purchase price per common share will not exceed an amount equal to 110% of the market price of the shares on the NYSE, Euronext Milan or Euronext Paris (as applicable). The market price will be calculated as the average of the highest price of each of the five trading days prior to the purchase date, as indicated on the official list on the NYSE, Euronext Milan or Euronext Paris. Redemption will be made according to market conditions and in accordance with applicable laws and regulations.

Stellantis explains that so far, taking into account the relevant part of the first phase of the purchase of shares, the remaining authorization is about 290 million shares, which is enough to finance this plan. held by partner China Dongfeng Corporation, as announced on July 15, 2022.

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Important points

– The sixth largest car group in the world – 3rd in the United States with 11% of the market and 2nd in Europe with 18%, born in January 2021 from the Peugeot-Fiat Chrysler alliance;

– Sales 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;

– A business model that transforms the group for new applications for drivers and for electric vehicles (world positions in electric vehicles) through digital transformation, internal performance culture (high industrial competitiveness) and social responsibility;

– Capital with 4 major shareholders: Agnelli family holding company Exor for 14.4%, Peugeot family for 7.2%, China’s Dongfeng for 5.6% and France’s BPI 5.66%, John Elkann chairman of the board of directors of 11 members and Carlos Tavares as managing director;

– Good financial position: €61.3 billion in available industrial liquidity and equity of €61.3 billion, against debt of €34 billion.

Challenge

“Dare forward 2030” strategic plan:

– maintenance of an equity level below 50% of invoices and an operating margin of more than 2 digits;

– a doubling of revenues including a fourfold increase in volume, ¼ obtained outside Europe and North America (€ 20 billion in China) and 1/3 from online sales,

– software strategy for sales of 20 billion and approximately 40% of the total amount;

– Innovation strategy:

– increased battery capacity up to 400 GWh,

– a combination of fuel cells / hydrogen for great service;

– a new capital fund of €300 million for advanced technology,

– a collaborative ecosystem, with more than 160 projects funded by more than 1,000 partners – autonomous driving, connectedness, electrification and high mobility,

– academy in digital and data and electricity with 9 digital hubs;

– An environmental strategy of carbon neutrality in 2038 through a 50% reduction in 2030 versus 2021:

– 100% electric vehicles in Europe and 50% in the United States;

– new circular economy unit – purchase of the Stimcar upgrader, launch of regional cycle centers from 2023, SUSTAINera label – targeting 2 billion euro revenue by 2030,

– investment in the “sustainable” copper mine of Los Azules in Argentina,

– Share Integration is now an expert – 5 million customers worldwide;

– Protecting the battery ecosystem with 5 giga companies in Europe and North America and with the vertical integration of raw materials;

Challenge

– Reducing the semiconductor shortage by the end of 2023;

– Spin-off from the strategic partnership with Archer in the production of electric vertical take-off and landing (eVTOL) aircraft;

– Progress in financing activities in the United States and Europe, with high profits;

– After a 29% increase in revenue in the 3rd quarter, confirmation of the 2022 target of a double-digit operating margin and a healthy free cash flow.

– 2022 dividend of €1.34 and share buyback for €1.5 billion.

Paradox performance

Data from EY highlights that the performance of the world’s top 16 manufacturers was strongest in 2021. Although the average rate has decreased for three consecutive years, from 6.3% in 2017 to just 3.5% in 2020, this rate stood at 8.5%. in 2021. This rate is a record for ten years. However, the context was very difficult for developers, faced with an unprecedented shortage of equipment. Global sales fell by 14% in 2020, the year of the health crisis, and increased again by 5% in 2021. However, last year, players were able to reap the benefits of their efforts on their fixed cost structure.