FINANCIALS MAURIZIO SALA

Transcription

1 FINANCIALS MAURIZIO SALA

2 PIRELLI BY 2015 > 16% Ebit margin (8.4% in 2010) ~30% ROI (11.5% in 2010) 0.4x Net Debt/Ebitda (0.7x in 2010) A REAL VALUE PLAYER 1

3 RECAP OF OUR VALUE ROADMAP 1 FROM REGIONAL PREMIUM TO GLOBAL PREMIUM LEADER 2 INCREASING WEIGHT OF CONSUMER AND REPLACEMENT, SELECTIVE PRESENCE IN OEMs 3 INDUSTRIAL FOOTPRINT IMPROVEMENT AND EFFICIENCY PLAN 4 TIGHT WORKING CAPITAL MANAGEMENT 5 INVESTMENT SELECTION 2

4 PIRELLI TYRE TARGETS: REVENUES EBIT MARGIN (Post Restructuring) /Bln CAGR 10% ~ % Ind. Cons % 69% ~5.7 30% 70% ~6.7 27% 73% 25% 75% Ind. Cons. 9.5% 30% 70% ~11% 24% 76% 11% 12% 21% 79% 18% 82% 2010A 2010A 2011E 2012E 2014E 2011E 2012E 2014E 2012 vs CAGR Volumes +2% +3% o/w Consumer Premium +20% +17% Price/Mix +8% +5% Russia +6% +2% Total +16% +10% 3

5 TYRE EBIT BRIDGE 100 = Ebit 2011 Premium= (20) (30) (25) (10) Volumes Volumes Mix Price Raw non Premium materials Premium Inflation Deprec. & others Efficiencies 2014 Before Russia Russia

6 CONSUMER* BU: TARGETS SALES EBIT MARGIN (Post Restructuring) /Bln Moto CAGR +13% +10% excluding Russia ~ % 10% 10% ~ % 9.6% ~12% % % Car 89% 90% 90% 90% 2010A 2010A 2011E 2011E 2012E 2012E 2014E 2014E 2012 vs CAGR Volumes +3% +4% o/w Premium +20% +17% Price/Mix +11% +6% Russia +7% +3% Total +21% +13% * Moto + Car + Controlled distribution 5

7 CONSUMER EBIT BRIDGE 100 = Ebit 2011 Premium= (20) (30) (35) (10) Volumes Volumes Mix Price Raw non Premium materials Premium Inflation Deprec. & others Efficiencies 2014 Before Russia Russia

8 INDUSTRIAL * BU: TARGETS REVENUE GROWTH EBIT MARGIN (Post Restructuring) /Bln CAGR +4% Agro % 13% 12% % 9.2% ~9% 9 10% 11 12% Truck 88% 88% 87% 87% 2010A 2010A 2011E 2011E 2012E 2012E 2014E 2014E 2012 vs CAGR Volumes +1% +2% (+4% radial) Price/Mix +3% +2% Total +4% +4% * Truck + Agro + Steelcord + Controlled distribution 7

9 INDUSTRIAL EBIT BRIDGE 100 = Ebit (50) 45 (20) Volumes Price Mix Raw materials & Other Cost Efficiencies Deprec. & others

10 RAW MATERIALS BREAKDOWN 9M 2011 (based on purchasing cost) GUIDANCE Synthetic Rubber 25% Average Cost of Goods Sold Headwind (2012 vs 2011) /mln 2013/ 2014 Natural Rubber 36% Carbon Black 11% Natural Rubber TSR20 ($/ton) Brent Oil ($/barrell) 4,600 4, (20) flat flat Textile 9% Steel 7% Chemicals 12% Raw Material cost on sales: 43% Butadiene EU ( /ton) FX (R$,TRY,EGP, US$) 1,900 2,100 (30) (140) TOTAL (140) flat 2012 raw material headwind fully offset by price increases Any additional raw material variation will be countered with our price policy 9

11 250 /MLN EFFICIENCY PLAN IN DEPTH Raw Materials Use of alternative Raw Materials Weight reduction Waste improvement Labour Productivity & Scale Optimization of production process Automation of mature plants New plants designed more efficiently G&A & Fixed costs Cost rationalization Allocation To Low-Cost Plants 120 /Mln 25% 9% 21% 45% 130 /Mln 37% 41% 3% 19% Capacity expansion in low-cost country 2012 Cumulative

12 PROFITABILITY BY REGION EBIT CAGR RDEs (except LATAM) <20% <20% >20% +50% SOUTH AMERICA >50% >40% >30% 10% MATURE <30% >40% <50% +30% RDEs South America Mature 2010A 2011E 2014E Premium development drives profitability increase Leading position in market and profitability; stable double-digit Ebit margin Strong profitability improvement sustained by Premium market development and higher Efficiency 11

13 CASH FLOW: NEW VS OLD PLAN 0.45 Capex: <1.5 (1.1) NEW PLAN (NOV. 11) <1.1 < Capex: 0.7 (2.1) Net Debt/ Ebitda* 2010A 0.7X OPERATING CASH FLOW FINANCIAL & FISCAL CHARGES DIVIDENDS 2013E Δ PERIMETER/ RUSSIA AT THE SAME PERIMETER ~0.6X 2013E ~0.9X OPERATING CASH FLOW FINANCIAL & FISCAL CHARGES DIVIDENDS 2015E ~0.4X Capex: >1.2 OLD PLAN (NOV. 10) Capex: 0.7 <1.0 < > (0.8) 0.8 (1.3) 0.7 Net Debt/ Ebitda* 1.1X OPERATING CASH FLOW FINANCIAL & FISCAL CHARGES DIVIDENDS 2013E ~1X OPERATING CASH FLOW FINANCIAL 2010E& FISCAL CHARGES DIVIDENDS 2015E ~0.6X *After continuous restructuring 12

14 2012 NET FINANCIAL POSITION /Bln Capex: 0.45 ~0.7 ~0.05 ~ 0.75 (>0.4) 0.4 <0,75 ~ 0,25 < before Russia RUSSIA 2011E OPERATING CASH FLOW FINANCIAL & FISCAL CHARGES 2012E BEFORE DIVIDENDS AND RUSSIA RUSSIA 2012E BEFORE DIVIDENDS Net Debt/ Ebitda* 0.9X ~0.7% ~1.0X *After continuous restructuring 13

15 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. 14