PIRELLI: THIRD QUARTER SAW IMPROVEMENT, NET INCOME +6.6% TO 83.9 MILLION EURO

HIGH VALUE VOLUMES +3.9% (CAR NEW PREMIUM +5.3%), ADJUSTED EBIT AT 213.7 MILLION EURO WITH MARGIN AT 16.7%, NET CASH FLOW POSITIVE (12.2 MILLION EURO) THANKS TO SIGNFICANT REDUCTION OF INVENTORIES

IMPACT OF COVID ON NINE MONTHS RESULT MITIGATED BY EFFICIENCIES PLAN AND COSTS REDUCTION IN LINE WITH TARGETS FOR THE YEAR

Board of Directors of Pirelli & C. S.p.A. approved consolidated results through September 30, 2020

Third quarter 2020

• Revenues: 1,277.4 million euro, with an organic variation of -1.5% compared with 3Q 2019 (-7.5% including effect of forex) thanks to a recovery in demand for High Value and price/mix (+2.3%)

• Adjusted Ebit: +213.7 million euro (+244.5 in 3Q 2019), Adjusted Ebit margin at 16.7% (17.7% in 3Q 2019) thanks to the contribution of internal levers

• Total net income: +83.9 million euro (+6.6% compared with +78.7 million euro in 3Q 2019)

• Cash flow positive 12.2 million euro (+11.6 million euro in 3Q 2019)

First nine months 2020

• Revenues: 3,093.8 million euro, with an organic variation of -19.3% (-23.4% including the effect of forex) because of a fall in demand particularly in the second quarter and the volatility of exchange rates.

• Adjusted ebit: 280.4 million euro thanks to the contribution of efficiencies and cost containment actions which limited the impact of the fall in demand and the slowdown (adjusted ebit 685.0 million euro on September 30, 2019)

• Net result: -17.8 million euro (+385.7 million euro on September 30, 2019)

• Net cash flow: -745.3 million euro (-805.8 million euro on September 30, 2019; -628.9 million net of dividends distributed in 2019)

• Net Financial Position: -4,252.5 million euro, substantially unchanged compared with -4,264.7 on June 30, 2020

• Liquidity margin: 1,849.8 million euro on September 30, 2020; financial debt maturities guaranteed until the end of the first half of 2023

2020 OUTLOOK

• 2020 market outlook improves thanks to Original Equipment in Apac and North America, but outlook cautious for Europe because of recent anti-Covid measures following the resurgence of the pandemic

• Volumes expected at about -17%/-18% (previous indication about -18%/-20%)

• Revenues expected at around 4.18/4.23 billion euro (previous indication about 4.15/4.25 billion)

• Adjusted ebit margin expected at between around 11.5% and 12% (previous indication expected at between about 12% and13%) because of the impact of exchange rates, raw materials and the increase of other costs which are in part non-monetary

• Cash generation confirmed at approximately 190-220 million euro

• Net financial position at around -3.3 billion euro confirmed

• Efficiencies and cost reduction plans confirmed

Published on: 11 November 2020, 17:50 CET