Group Presentation. Conference Call with the Financial Community Third Quarter Nine Months 2005 Results 11 th November 2005

Transcription

1 Group Presentation Conference Call with the Financial Community Third Quarter Nine Months 2005 Results 11 th November 2005

2 GROUP MISSION ENHANCING ENTERPRISE VALUE through LEADING TECHNOLOGY & BUSINESS INNOVATION leveraging on MANAGEMENT SKILLS driven by AN EFFECTIVE CORPORATE GOVERNANCE 1

3 9M 05 PIRELLI GROUP RESULTS /mn 9M 05 9M 04 05/04 Net Sales (as reported) 3,322 2, % Net Sales (organic) 3, % % margin 8.4% 7.6% Result from Equity Participations Olimpia including Result from Equity Participations % Net Income (Loss) from Continuing Operations % Discontinued Operations Net Income (Loss) Attributable Net Income NET FINANCIAL POSITION of which Discontinued Operations ,236 2, % 2

4 9M M 2005: GROUP VARIATION /mn (16) (*) Including Results from Equity Participations + 26 mn YoY GROUP 9M 2004 Exchange Rates Variation Tyre Variation Broadband Solutions Variation Pirelli RE Variation Others GROUP 9M 2005 (*) in 9M 04, 14 mn positive contribution from disposed submarine TLC cables activities IPR 3

5 FY M 2005: GROUP NET FINANCIAL POSITION VARIATION /mn Pirelli & C. Capital Increase (1,062) mn Olimpia Capital Increase 1,344 mn 1, (198) (7) 1,236 (1,205) GROUP NFP FREE CASH FLOW ORDINARY ACTIVITIES PIRELLI & C./ OLIMPIA CAPITAL INCREASE TELECOM ITALIA SHARES PURCHASE CABLES DISPOSAL IMPACT NET CASH FLOW CABLES ACTIVITIES CHINA TYRE JV IMPACT PIRELLI & C. PIRELLI RE DIVIDENDS FINANCIAL AND FISCAL CHARGES OTHERS GROUP NFP

6 9M 05 PIRELLI TYRE RESULTS /mn Net Sales DA 9M 05 2, M 04 2, Variation +9.8% +17.7% Price/mix: +5.2% Volumes: +1.8% Actual Variation: +7.0% Exch. Rates: +2.7% Perimeter: +0.1% Total: +9.8% DA margin 15.2% 14.2% margin % % +24.9% Commercial Variations: 112mn Efficiencies: 5mn Unit Costs/Other: (63)mn Total: 54mn Net Income % 7.2% Net Sales organic growth in Third Quarter coming from both Consumer and Industrial segments Further Price & Mix improvements (5.5% in the quarter) offset raw materials and energy cost increase also in Third Quarter Pirelli two digit Winter Sales growth is more than twice the market allowing a +1.9% volume overall growth in the quarter, which includes initial 2 months of Chinese new operations 5

7 PIRELLI TYRE: SEASONALITY TREND & FY 2005 OUTLOOK PIRELLI TYRE QUARTERLY ROS (%) % 10.6% % 9.5% 9.2% % 8.2% 7.8% 6.1% 7.4% 6.4% 9% ROS (Target FY06) anticipated in FY05 8.4% 7.4% FY04 FY03 1Q 2Q 3Q 4Q Soft market demand expected to continue till year end 4Q raw materials and energy cost increase pressure on margins Announced price increases will materialize from early % ROS for FY 2005 is confirmed 6

8 9M 05 PIRELLI BROADBAND SOLUTIONS RESULTS /mn 9M 05 9M 04 Variation Net Sales DA (6) (7) DA margin (6) (7) margin Net Income (7) (11) First revenues contribution from Photonic products 9M 2005 improved, as a result of: positive contribution of Broadband Access and Photonic development costs (start-up and qualification tests) Confident to reach FY05 Sales targets 7

9 PIRELLI BROADBAND SOLUTIONS: FIELDS OF ACTIVITY BROADBAND ACCESS: ENLARGING CLIENTS PORTFOLIO PHOTONICS: BECOMING A REALITY Increasing contribution to Revenues from businesses with Italian TLC carriers First revenues contribution in 3Q 2005 (CWDM City 8 TM ) Scouting the European TLC market to provide value added BBA solutions DTL qualification test Discus Modular Access Gateway TM CWDM City 8 TM Dynamically Tunable Laser 8

10 9M 05 PIRELLI RE RESULTS /mn 9M 05 9M 04 05/04 % Aggregate Revenues 2, , % Incl. Income from Equity Participations % Profit Before Taxes % Net Attributable Income % 9

11 9M 05 PIRELLI RE ACHIEVEMENTS Ebit including Income from equity participations increase by 31% to Euro mn, with greater contribution of services, distribution network and asset and fund management fees (from 25% to above 40%) Long term portfolio increased its weight on total Asset Under Management from 28% at the end of 2004 to around 40% as of September 2005 thanks to Berenice office fund contribution Specialised Services posted a significant increase at level (+26% over the same period of 2004) and ROS reached 18% (14% as at Sept. 2004) As at September 2005, Pirelli Re Franchising competed 803 affiliations (444 shops are already operating through the country) 10

12 PIRELLI GROUP OUTLOOK Pirelli Tyre: - 9% FY 2005 ROS confirmed Pirelli Broadband Solutions: Sales target confirmed - confident on growing Photonics contribution on Sales in 2006 Pirelli RE: - committed to deliver Growth Targets 11

13 12 BACKUP SLIDES

14 PIRELLI GROUP STRUCTURE Engine of Innovation Pirelli Labs 100% Pirelli & C. SpA Main Shareholders Camfin 25.4% Assicurazioni Generali 5.2% Edizione Holding 4.5% Mediobanca 4.5% Fondiaria SAI 4.3% R.A.S. SpA 4.3% 100% 51% Start-Ups Pirelli Broadband Solutions Pirelli Ambiente 100% 51% 57.7% Core Businesses Pirelli Tyre Pirelli Real Estate Olimpia 18% Telecom Italia 13

15 9M 2005 GROUP RESULTS /mn Pirelli Tyres Pirelli Broadband Solutions Pirelli RE Others PIRELLI GROUP 9M M /04 9M M /04 9M M /04 9M M /04 9M M /04 Net Sales (as reported) 2,707 2, % % % ,322 2, % Net Sales (organic) 2, % 74 3, % DA % (6) (7) % (18) (2) % DA margin 15.2% 14.2% 13.1% 12.8% % (6) (7) % (29) (13) (*) % margin 10.0% 8.8% 8.4% 7.6% Result from Equity Participations (included Dividends) Olimpia including Result from Equity Participations % (6) (7) % % Financial Charges (30) (27) (1) (4) 4 (79) (47) (110) (74) EBT % (7) (11) % % Fiscal Charges (76) (71) - - (26) (21) 5 9 (97) (83) Net Income (loss) before Discontinued Operations % (7) (11) % % Discontinued Operations Net Income (loss) % (7) (11) % % Attributable Net Income % NET FINANCIAL POSITION ,236 2,046 of which Discontinued operations 649 (*) after 14 mn positive contribution from disposed submarine TLC cables activities IPR 14