Disclaimer. Statement

Transcription

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2 Disclaimer This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA s current expectations and projections about future events and does not constitute an offer or solicitation for the sale. purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of the financial community. These statements appear in a number of places in this presentation and include statements regarding the intent. belief or current expectations of the customer base. estimates regarding future growth in the different business lines and the global business. market share. financial results and other aspects of the activities and situation relating to the Company. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties. and actual results may differ materially from those expressed in or implied by these forward looking statements as a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely. Consequently it is recommended that they be viewed as indicative only. Analysts are cautioned not to place undue reliance on those forward looking statements. which speak only as of the date of this presentation. Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation. including. without limitation. changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of unanticipated events. Statement The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) that all the accounting information contained in this presentation correspond to the documented results. books and accounting of the Company. 1

3 Agenda Key Messages Pirelli Financial Review Pirelli Tyre & Parts Pirelli Real Estate Appendix 2

4 Results and Targets H H FY 2010 target FY 2009 Real Estate Sales () 1) ,300-1,500 1,031 Service Platform incl. G&A (3.2) +20/ ) Fixed Cost Saving (versus previous year) / NFP (excluding shareholders's loan) (452.3) (828.5) stable (445.8) 1) Thanks to the placement of the Anastasia Fund, sales will reach approx. 771 mln 2) Including 13.5 mln related to 10% Pirelli RE SGR and 20% Credit Servicing shares disposals 3

5 Consolidated Profit and Loss ACTUAL JUNE 2010 ACTUAL MARCH 2010 ACTUAL JUNE 2009 Revenues of which service activities of which other revenues EBIT services Income from equity participations services (5.2) 2.0 Service platform/g&a (3.2) EBIT consolidated investment activities Income from equity participations Interest income from Shareholders' loans (4.0) (2.2) 12.9 (1.2) (0.1) (22.8) 13.7 Investments (6.0) EBIT incl. income from equity part. & interest income from shareholders' loans (9.2) Restructuring costs Real estate writedowns/revaluations 1) 0.0 (18.3) (11.5) (4.8) EBIT incl. inc. from equity part.after restr. costs, writedown/ reval. (0.4) 10.3 (25.6) Financial charges Profit before taxes (11.9) (12.3) (5.2) 5.0 (14.7) (40.3) Income taxes Net income (8.1) (20.4) (4.1) 0.9 (2.4) (42.7) Minority interests (0.5) (0.6) 0.4 Net income after minority interests (20.9) 0.4 (42.3) 1) Market appraisals by indipendent evaluators are updated on a six month basis 4

6 Segment Report Italy GermanyTotal Poland NPL Holding Service platform Vehicles & funds EBIT including income and interest income SH Loans (0.9) (0.1) (0.6) (2.4) (5.2) (10.0) 11.2 (3.2) 2.8 (10.3) 4.3 (0.9) (1.5) (6.0) 18.0 (3.6) (2.1) 1.0 (5.2) (10.0) 17.9 (9.2) 5

7 Sales trend 1,300/1,500 Italy Germany Poland Development ~250 Gross margin of sales is approx. +5% as of June 2010 ~1,050 Trading & Soho ~200 Other ~600 Sales price vs market value is approx. -0.5% as of June Anastasia fund ~ ~50 Target 2010 June 2010 June

8 Update on Cost Saving 2010 vs 2009 Consulting costs IT & Communication +1.2 Depreciations +0.9 Others fixed costs Headquarters ) +25 / +30 Fixed Costs Savings 6/2010 Labour Labour costs costs Marketing +0.7 Travel +0.8 Other ) Target Q 10 1) Includes cost of Directors 2) Includes provisions, consummables and other 7

9 Impact of Real Estate Writedowns and Revaluations on P&L Writedowns June 2010 (18.3) June 2009 (50.3) June 2009 Revaluations Revaluations 45.5 Total impact (18.3) (4.8) 45.5 June 2010 (18.3) (4.8) (18.3) Writedowns (13.0) Italy (50.3) (5.3) Germany Writedowns 8

10 Real Estate AUM Evolution - like for like (Market Value) /bln -0.6 /bln -0.1 /bln -0.3 /bln 14.4 bln 14.1 bln Capex, Dec 2009 acquisitions Jun 2010 & other Sales Writedowns Highstreet 1) The valuation of the Real Estate portfolio estimated by indipendent appraisers shows a -0.6% decrease on a like for 2) like basis in the first half 2010 The Italian portfolio marks a -1.1% and the German portfolio -0.3% 2) 1) Pending finalization of the negotiations aimed at restructuring the Karstdat group, the Highstreet s real estate market value has been conventionally estimated consistently with the expectations of recovery of the remaining net invested capital equal to approx mln 2) Excluding Highstreet 9

11 Fund Management New business for third parties /bln Expected new assets under Management Effective from Progetto Mida 0.6 Jan 2010 Fondo Anastasia Fondo Fedora 0.1 / / 2012 Enasarco 0.6 / / 2012 Total 1.6 / / /

12 Key Real Estate Portfolio Data as of June 2010 Mkt. Value 100% Mkt. Value PRE pro-quota Book Value UCG Net Debt 1) PRE pro-quota PRE pro-quota PRE pro-quota (27% average) LTV NAV PRE pro-quota NIC PRE pro-quota IAS 40 % ITALY 6,254 1,775 1, % % GERMANY 6,644 1,664 1, ,325 80% % POLAND % % TOTAL REAL ESTATE 13,070 3,503 3, ,348 67% 1, % NPL (investment) SERVICES TOTAL PIRELLI RE 1,146 1) Participated AUM (market value) NOTE: The difference between NAV and UCG+NIC (equal to 177 mln) is due to other assets and liabilities not included into the calculation of real estate NAV 11

13 NFP excl. Shareholders Loans (43.4) NFP Dec 2009 NFP Mar 2010 Sales / distributions Equity contrib. to funds and SPV Layoff Interests and other financial expenses Capex and other NFP Jun

14 Group Corporate Lines Current Situation Situation post separation Bank Commitment Expiry Bank Commitment Expiry CLUB DEAL (*) 320,000 Jul-12 WEST LB 50,000 May-11 UNICREDIT 25,000 Dec-10 POP MILANO 10,000 Jul-11 RBS 25,000 Feb-11 CLUB DEAL (*) WEST LB UNICREDIT POP MILANO RBS PIRELLI & C. (**) 320,000 50,000 25,000 10,000 25, ,000 Jul-12 May-11 Feb-11 Jul-11 Feb-11 Jul-12 TOTAL 430,000 TOTAL 580,000 AVERAGE RESIDUAL LIFE 21 months AVERAGE RESIDUAL LIFE 22 months (*) Club Deal Partecipants: Unicredit 100M Banca Popolare Sondrio 20M Intesa SanPaolo 50M Banca Popolare Emilia Romagna 20M Monte Paschi Siena 50M Banca Carige 20M Banca Popolare Milano 50M UBI - Centrobanca 10M (**) Previously it was an uncommitted line; still under negotiation 13

15 Financial situation of partecipated vehicles/funds 1/2 AUM 14,6 1) 2) 10.5 Net debt as of June 30, 2010 Refinancing ,4 AuM 100% Net Debt 100% Net Debt proquota NPL Real Estate Beyond 1) Participated Real Estate+ NPL 2) Due to maturity 14

16 Financial situation of partecipated vehicles/funds 2/2 Bank Loan characteristics 1) LTV 67%: Italy 56%, Germany 80% and Poland 38% Ero B o M?? Average Duration close to 3.2 years (PRE pro-quota 3.0): Italy 2.7, Germany 3.6 and Poland 1.8 years Average spread: 222 bps (PRE pro-quota 177 bps) 83% hedged interest rate risk (PRE pro-quota 77%) Pro-quota recourse guarantees pro-quota for approx. 29 mln/ 1) Excluding NPL and subsidiaries. 15

17 Consolidated Balance Sheet ACTUAL JUNE 2010 ACTUAL December 2009 ACTUAL JUNE 2009 Fixed assets of which participations of which goodwill Net working capital Net invested capital Net equity of which Group net equity Funds Net financial position of which Shareholders' loan (390.5) (404.4) (491.1) Total sources NFP excluding shareholders' loan NIC excluding shareholders' loan 1, , ,196.4 Gearing

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19 Consolidated Pirelli RE Net Cash Flow ACTUAL JUNE 2010 ACTUAL JUNE 2009 Ebit before restructuring costs, reval./deval. Depreciation Change in investments Change in other fixed assets Chenge in NWC, Funds (0.3) (30.8) (2.0) 3.6 (37.5) (0.7) 15.7 Free cash flow (15.2) (20.8) Restructuring costs Interest income/expenses and taxes (7.5) 2.3 (23.6) (3.4) Cash flow before dividends (20.5) (47.8) Dividends paid Net cash flow (20.5) (47.8) 18

20 Key Real Estate Portfolio Data as of June 2010 Mkt. Value 100% Mkt. Value PRE pro-quota Book Value UCG Net Debt 1) PRE pro-quota PRE pro-quota PRE pro-quota (27% average) LTV NAV PRE pro-quota NIC PRE pro-quota IAS 40 % ITALY 6,254 1,775 1, % % GERMANY 6,644 1,664 1, ,325 80% % POLAND % % TOTAL REAL ESTATE 13,070 3,503 3, ,348 67% 1, % NPL (investment) SERVICES TOTAL PIRELLI RE 1,146 1) Participated AUM (market value) NOTE: The difference between NAV and UCG+NIC (equal to 177 mln) is due to other assets and liabilities not included into the calculation of real estate NAV 19

21 Italy: Key Real Estate Portfolio Data as of June 2010 Mkt. Value Mkt. Value Book Value UCG Net Debt PRE pro-quota 100% 1) PRE pro-quota PRE pro-quota PRE pro-quota LTV NAV PRE pro-quota NIC PRE pro-quota COMMERCIAL YIELDING & CORE 4,013 1, % TRADING & SOHO % DEVELOPMENT 1, % TOTAL ITALY 6,254 1,775 1, % Italian participated portfolio 6.3 mln Development 21% Trading & Soho 15% Commercial Yielding & Core 64% 1) Participated AUM (market value) NOTE: The difference between NAV and UCG+NIC (equal to 78 mln) is due to other assets and liabilities not included into the calculation of real estate NAV 20

22 Germany & Poland: Key Real Estate Portfolio Data as of June 2010 Mkt. Value Mkt. Value Book Value UCG Net Debt PRE pro-quota 100% 1) PRE pro-quota PRE pro-quota PRE pro-quota LTV NAV PRE pro-quota NIC PRE pro-quota DGAG (Residential) % BAUBECON (Residential) 1, % HIGHSTREET (Commercial) 3, % Other (Ger) % Development (Poland) TOTAL GERMANY TOTAL POLAND % ,644 1,664 1, ,325 80% % ) Participated AUM (market value) NOTE: The difference between NAV and UCG+NIC (equal to 99 mln) is due to other assets and liabilities not included into the calculation of real estate NAV 21

23 Economic Results Total Pirelli RE JUNE 2010 MARCH 2010 JUNE 2009 Service platform & G&A Revenues Services Platform/G&A Result (3.2) Vehicles & funds Result from vehicles & funds (6.2) (1.2) (19.8) of which Real estate (3.4) (3.5) (22.8) of which NPL (2.8) Int. Inc. from shareholders' loans Vehicles & Funds Result (*) (6.0) Total Result (*) (9.2) (*) Result' represents EBIT including income from equity participations including interest income from shareholders loans 22

24 Economic Results Italy JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues Fund & AM Fee Result Agency Revenues Agency Result (3.5) Property Revenues Property Result Total Revenues Service Platform Result Result from vehicles & funds 0.0 (0.1) (14.6) Int. Inc. from shareholders loans Vehicles & Funds Result (*) (10.3) Total Italy (*) (3.6) (*) Result' represents EBIT including income from equity participations including interest income from shareholders loans 23

25 Economic Results Germany JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues Fund & AM Fee Result Agency Revenues Agency Result Property Revenues Property Result Facility Revenues Facility Result (0.1) (0.5) (0.4) Total Revenues Service Platform Result Result from vehicles & funds (3.6) (3.4) (8.8) Int. Inc. from shareholders loans Vehicles & Funds Result (*) (0.9) Total Germany (*) (*) Result' represents EBIT including income from equity participations including interest income from shareholders loans 24

26 Economic Results Poland JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues Fund & AM Fee Result 0.9 (0.2) 0.4 (0.1) 1.1 (0.5) Agency Revenues Agency Result 0.3 (0.1) 0.2 (0.0) 0.5 (0.1) Facility Revenues Facility Result (0.5) (0.2) 0.6 Total Revenues Service Platform Result (0.9) (0.3) (0.1) Result from vehicles & funds Int. Inc. from shareholders loans Vehicles & Funds Result (*) Total Poland (*) (*) Result' represents EBIT including income from equity participations including interest income from shareholders loans 25

27 Economic Results NPL JUNE 2010 MARCH 2010 JUNE 2009 Service platform Revenues Services Platform Result (0.6) (0.0) (2.4) Vehicles & funds Result from vehicles & funds Int. Inc. from shareholders' loans (2.8) Vehicles & Funds Result (*) Total NPL (*) (1.5) (2.1) (*) Result' represents EBIT including income from equity participations including interest income from shareholders loans 26

28 Participated Real Estate Assets under Management 1H % ( /000) Quota PRE Passing Rent Passing Yield Vacancy Book Value Market Value Net Debt Commercial Core Italy 95, % 7.7% 1,612,607 1,738,160 1,082,738 Fondo TECLA 44.8% 40, % 8.1% 688, , ,142 Fondo Cloe 18.1% 30, % 10.7% 446, , ,964 FONDO RETAIL & ENTERTAINMENT 31.6% 24, % 477, , ,632 Commercial Yieding Italy 151, % 8.5% 2,153,269 2,274,540 1,108,842 Fondo FIRPS 22.0% 20, % 286, , ,977 TIGLIO % 13, % 45.9% 175, , ,666 Fondo Raissa 35.0% 21, % 309, , ,878 Fondo Olinda 11.3% 32, % 4.0% 518, , ,411 Dolcetto Tre S.r.l. 33.0% 1, % 13,675 19,100 9,722 PROGETTO PERUGIAsrl 100.0% 1, % 1.7% 32,737 34,200 - Fondo Armilla 2.0% 16, % 224, , ,778 FONDO SPAZIO INDUSTRIALE 22.1% 34, % 3.1% 486, , ,581 FONDO HOSPITALITY & LEASURE 35.0% 9, % 106, ,240 77,831 TOTAL Italy 246, % 8.4% 3,765,876 4,012,700 2,191,581 Commercial Germany 6, % 9.1% 104, ,910 65,878 Mistral Properties 35.0% 6, % 9.1% 104, ,910 65,878 Residential Yielding Germany 188, % 4.1% 1) 2,728,803 2,762,449 2,154,861 DGAG - Residential+Special Properties 40.0% 66, % 2.4% 904, , ,270 BIB 40.0% 102, % 4.8% 1,540,145 1,552,741 1,302,040 Small Deal 49.9% 18, % 5.4% 284, , ,551 TOTAL Germany 2) 194, % 4.6% 2,833,795 2,869,359 2,220,739 TOTAL YIELDING PORTFOLIO 441, % 6.4% 6,599,671 6,882,059 4,412,319 Residential Small Office House Office ITA 14,791 n.m. n.m. 822, , ,417 Development ITA 2,401 n.m. n.m. 1,217,789 1,296, ,528 Highstreet Germany 3) 271,166 4) n.m. n.m. 3,650,000 3,650,000 3,279,625 Development Germany 5,364 n.m. n.m. 111, ,430 65,708 Development Poland 208 n.m. n.m. 130, ,297 60,930 OTHER PORTFOLIO 293,930 5,932,313 6,187,548 4,750,210 GRAND TOTAL REAL ESTATE 735,211 12,531,983 13,069,607 9,162,529 1) Vacancy calculated on units 2) Excluding Highstreet 3) Passing rents not including potential changes related with the current negotiation on the restructuring of Karlstadt group 4) Pending finalization of the negotiations aimed at restructuring the Karstdat group, the Highstreet s real estate market value has been conventionally estimated consistently with the expectations of recovery of the remaining net invested capital equal to approx mln 27

29 Pro-quota Real Estate Assets under Management 1H 2010 ( /000) Commercial Core Italy Quota PRE Passing Rent pro-quota Passing Yield Vacancy Book Value quota PRE Market Value Pro-quota Net Debt Pro-quota 31, % 7.5% 540, , ,529 Fondo TECLA Fondo Cloe FONDO RETAIL & ENTERTAINMENT Commercial Yieding Italy Fondo FIRPS TIGLIO 1 Fondo Raissa Fondo Olinda Dolcetto Tre S.r.l. PROGETTO PERUGIAsrl Fondo Armilla FONDO SPAZIO INDUSTRIALE FONDO HOSPITALITY & LEASURE TOTAL Italy Commercial Germany Mistral Properties Residential Yielding Germany DGAG - Residential+Special Properties BIB Small Deal TOTAL Germany TOTAL YIELDING PORTFOLIO 2) Residential Small Office House Office ITA Development ITA Highstreet Germany Development Germany Development Poland OTHER PORTFOLIO GRAND TOTAL REAL ESTATE 44.8% 17, % 8.1% 308, , , % 5, % 10.7% 80,863 99,472 49, % 7, % 150, , ,218 30, % 5.6% 439, , , % 4, % 62,969 63,646 46, % 1, % 45.9% 22,608 27,378 15, % 7, % 108, ,844 40, % 3, % 4.0% 58,546 64,185 27, % % 4,513 6,303 3, % 1, % 1.7% 32,737 34, % % 4,499 4,752 2, % 7, % 3.1% 107, ,826 51, % 3, % 37,375 37,884 27,241 62, % 6.2% 979,258 1,023, ,864 2, % 10.1% 44,556 45,234 27, % 2, % 10.1% 44,556 45,234 27,790 76, % 4.1% 1) 1,112,301 1,125, , % 26, % 2.4% 370, , , % 41, % 4.8% 616, , , % 8, % 5.4% 125, ,597 88,678 78, % 4.7% 1,156,857 1,171, , , % 5.2% 2,136,114 2,194,727 1,485,987 5,082 n.m n.m 290, , , n.m n.m 382, , ,873 32,811 n.m n.m 441, , ,223 3) 4) 2,302 n.m n.m 45,806 51,271 29, n.m n.m 49,560 64,827 24,485 40,865 1,210,723 1,308, , ,713 3,346,837 3,503,494 2,347,758 1) Vacancy calculated on units 2) Excluding Highstreet 3) Passing rents not including potential changes related with the current negotiation on the restructuring of Karlstadt group 4) Pending finalization of the negotiations aimed at restructuring the Karstdat group, the Highstreet s real estate market value has been conventionally estimated consistently with the expectations of recovery of the remaining net invested capital equal to approx mln 28

30 Rents and NPL Recoveries () RENTS NPL RECOVERIES 100% Pro quota 100% Pro quota June 2010 June 2009 June 2010 June 2009 June 2010 June 2009 June 2010 June 2009 The Manager mandated to draft corporate accounting documents of Pirelli & C. Real Estate S.p.A. Gerardo Benuzzi, attests - as per article 154-bis, comma 2, of the Testo Unico della Finanza (Decreto Legislativo 58/1998) - that all the accounting information contained in this presentation, correspond to the documented results, book and accounting of the Company. 29