STRATEGIC DIRECTIONS FOR THE NEW 2017-2020 INDUSTRIAL PLAN
STRATEGIC DIRECTIONS FOR THE NEW 2017-2020 INDUSTRIAL PLAN
• Pirelli, a pure consumer tyre company focusing on High Value products • Strategic positioning in more technologically advanced segments, with high growth and high profitability • Leadership position in the higher value markets: global leader in Prestige and New Premium replacement in Europe, China and Brazil • Development in High Value, including through digital transformation, safeguarding in relation to future technological trends, strategic conversion of Standard capacity
FORECAST DATA THROUGH 2020
• ≥+9% average annual growth in revenues during the 2016-2020 period • Percentage represented by High Value revenues of total growing from 55% in 2016 to 63% at the end of 2020 • Adjusted ebit margin from 17% in 2016 to ~18.5%/~19.5% at the end of 2020 • High value to grow from 81% of total adjusted Ebit in 2016 to 85% in 2020 • Efficiency plan achieved between 2017 and 2020 equal to 1.0% of revenues • Investments planned in the 2017-2020 period on average equal to approximately 7% of annual income, 82% destined to High Value • Debt declining with a Net Financial Position/Adjusted Ebitda ratio decreasing from 4.6 times at the end of 2016 to less than 2 at the end of 2020
RESULTS ON 30 JUNE 2017 CARVE-OUT
• Revenues on 30 June 2017 grew by 10.6% to 2,685.3 million euro • Adjusted ebit before start-up costs on 30 June 2017 at 443.0 million euros, with a margin of 16.5% • Adjusted ebit on 30 June 2017 at 416.2 million euro, with a margin of 15.5% • Net profit on 30 June 2017 grows to 67.6 million euro (-6.5 million euro on 30 June 2016) • Net Financial Position at 4,176.5 million euro on 30 June 2017 (4,960.7 million euro on 31 December 2016).
Pirelli announces (i) the forecast data through the end of the period of the new 2017-2020 Industrial Plan, as well as (ii) the carve-out interim consolidated financial statement for the six months to 30 June 2017, and the carve-out data for the 2016, 2015, 2014 consolidated financial statements, prepared for the purposes of illustrating the assets, liabilities, revenues and costs directly and indirectly attributable to the Pirelli group’s Consumer activities following the assignation of the Industrial activities to Marco Polo. The information supplied reflects Pirelli's new strategy of focusing on the High Value segment. In 2016, Pirelli's consumer activities generated 55% of its sales (2.8 billion euro out of a total of 5 billion euro) and 81% of its adjusted Ebit within the High Value segment (in 2014 the High Value weightings of income and adjusted Ebit were 45% and 68%, respectively), reaching an overall profitability (adjusted Ebit margin) in the consumer segment of 17%, an improvement compared with 15% in 2014.