Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Q1 2017 Earnings Presentation
18 slides from Pirelli & C's earnings presentation, 2017
Slide 1: 1Q 2017 Financial Results
1Q 2017 Financial Results
Slide 2: Key Messages
KEY MESSAGES > Transformation into a pure Consumer tyre player on-going, with the implementation of "new value generating programs" aimed at strengthening Prestige and Premium positioning and at capturing new trends in mobility > New value generating programs for the medium term: › conversion of Aeo
Slide 3: Agenda
AGENDA 1 1Q 2017 RESULTS 2 APPENDIX 1Q 2017 RESULTS 2
Slide 4: Pirelli Key Financial Results
PIRELLI KEY FINANCIAL RESULTS € million 1Q ‘16 1Q ‘16 Δ vs 1Q ‘16 1Q ‘17 reported restated1 restated1 1Q Highlights Revenues 1,436.0 1,180.9 1,339.3 +13.4% Sound organic growth sustained by: Organic Growth2 +8.4% strengthening on Premium top industry price/mix (+5.5%) EBITDA before non recurring
Slide 5: Revenues Bridge
REVENUES BRIDGE ∆ YoY change (in € million and %) +13.4% 47.8 11.0 65.2 +4.0% +1.0% 34.4 +5.5% 1,339.3 +2.9% o/w 1,180.9 Premium +15.3% Revenue 1Q ’16 Volume Price/Mix Δ Perimeter FX Revenue 1Q ’17 restated Top line quality improving: +15.3% Premium volumes growth more than offsetting the Non Prem
Slide 6: 1Q 2017 Performance by Region
1Q 2017 PERFORMANCE BY REGION Group Sales Group EBIT Margin adjusted2 Organic € million Δ YoY growth1 Discounting the impact of “new Total 1,180.9 1,339.3 13.4% +8.4% 15.3% (-1.9 pp YoY) value generating programs” and the time lag between price increases and raw material costs hike Europe 45% 42%
Slide 7: 1Q 2017 Premium Performance by Region
1Q 2017 PREMIUM PERFORMANCE BY REGION Organic Δ YoY Growth1 € million Total 782.2 907.4 +16.0% +14.8% 1Q reports again a positive performance, further reinforcing Pirelli position after a strong 1Q 2016 with double digit growth Consistent growth across all businesses and all channels, with furth
Slide 8: Operating Performance
OPERATING PERFORMANCE € million 4.0 (20.2) 39.6 (38.4) 203.6 16.4 205.0 ∑ +60.0 ∑ -58.6 EBIT 1Q ’16 Volume Price / Mix FX Raw D&A / other costs EBIT 1Q ’17 adjusted1 materials & related to the adjusted1 restated other input development of costs net of Premium & new efficiencies businesses (Connesso
Slide 9: 1Q 2017 Net Financial Position
1Q 2017 NET FINANCIAL POSITION € million Financial charges (77.0) Taxes (39.1) 11.9 33.6 116.1 (269.3) 5,525.2 720.1 4,912.8 EBIT before restr. costs 205.0 Depreciation / Amortisation 65.4 Investments1 (98.3) NWC & other (892.2) FY’16 restated Operating Fin. Inc./ Cash-out FX / Industrial 1Q ’17 C
Slide 10: Pirelli Debt Structure as of March 31, 2017
PIRELLI DEBT STRUCTURE AS OF MARCH 31, 2017 Net Financial Position Gross Debt Maturity € million 1 Cash & Cash 6,146 621 Equivalents 1,621 Other 483 Borrowings 353 138 1,984 352 1 Committed Line 4,719 Drawdown 1,372 Fin. Receivables & other assets 600 1,375 5,525 13 Debt Capital 605 1,199 Market 812
Slide 11: Agenda
AGENDA 1 1Q 2017 RESULTS 2 APPENDIX 1Q 2017 RESULTS 10
Slide 12: Consumer Business: Key Market Trends
CONSUMER BUSINESS: KEY MARKET TRENDS Market trend 1Q’16 2Q’16 3Q’16 4Q’16 FY’16 1Q’17 % YoY 8 4 2 3 3 O.E. (2) Europe1 3 4 2 4 REPLACEMENT 1 (1) 4 2 2 2 1 1 O.E. NAFTA 7 4 2 2 REPLACEMENT2 0 (4) 17 19 South America O.E. (15) (13) (12) (29) 11 REPLACEMENT3 (7) (2) (4) (1) (3) 34 China 28 19 9 9 9 1 R
Slide 13: Pirelli Balance Sheet
PIRELLI BALANCE SHEET € million 31/12/20161 31/03/2017 Fixed assets related to continuing operations 10,299.2 9,213.6 Inventories 1,055.6 925.5 Trade receivables 679.3 1,044.8 Trade payables (1,498.5) (1,062.2) Operating net working capital related to continuing operations 236.4 908.1 Other receivab
Slide 14: Pirelli Group Cash Flow
PIRELLI GROUP CASH FLOW 1Q ‘16 reported 1Q ‘17 EBIT before non recurring items & restructuring costs 203.6 205.0 Amortization and depreciation 57.9 65.4 Capital expenditures (70.0) (98.3) Change in working capital / other (783.8) (892.2) Operating Cash Flow (592.3) (720.1) Financial income / expense
Slide 15: March 2017 Pirelli People
MARCH 2017 PIRELLI PEOPLE Headcount People by Region NAFTA South America 7% 25% Asia Pacific 30,200 16% 29,787 MEAI 2% Russia Europe 11% 39% Dec '16 1 Mar '17 1 People by Contract People by Cluster Temps & Agency Management 5% 1% Employees 95% Staff 21% Workers 78% 1 Without Venezuela headcount, inc
Slide 16: Pirelli Plants in the World as of March 31st 2017
PIRELLI PLANTS IN THE WORLD1 AS OF MARCH 31ST 2017 ITALY GERMANY Low-cost countries U.K. Bollate – Car U.S. Breuberg – Car / Settimo Torinese Burton – Car Moto – Car Rome – Car Carlisle – Car RUSSIA Kirov – Car Voronezh – Car MEXICO ROMANIA Silao – Car TURKEY Slatina – Car Izmi
Slide 17: Raw Materials
RAW MATERIALS Raw Material Price Trend Brent Oil (in $ / barrel) Yearly Average Natural Rubber (in $ / tons) Natural Rubber: Sicom Brent: www.oilnergy.com 4,519 3,156 108.9 111.0 2,517 111.7 99.5 1,711 45.0 56.6 1,378 1,370 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4
Slide 18: Disclaimer
DISCLAIMER This presentation is not and does not constitute an offer to sell or the solicitation, invitation or recommendation to purchase any securities in the United States or any other jurisdiction. The information included in this presentation is not intended to constitute or form part of, and s