Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Q1 2025 Earnings Presentation
27 slides from Pirelli & C's earnings presentation, May 14, 2025
Slide 1: 1Q 2025 Results
1Q 2025 Results Milan May 14th, 2025 PIRELLI 1Q 2025 RESULTS 0 Wednesday, 14 May, 2025
Slide 2: Agenda
Agenda 1 1Q 2025 KEY MESSAGES 2 PIRELLI & C. – 1Q 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1Q 2025 RESULTS 1 Wednesday, 14 May, 2025
Slide 3: Key messages
Key messages 1Q’25 results confirming the strength of our strategy in a very challenging external scenario: ▪ Organic growth (+4.7% yoy) driven by solid commercial performance: • market share gain in ≥18” Replacement across regions • solid price/mix (+3.9% yoy) supported by mix enhancement and OE in
Slide 4: 1Q 2025 results highlights
1Q 2025 results highlights Solid operating performance, improving in all metrics Net Sales Adjusted EBIT1 € million +3.7% +6.5% 1,696 1,759 263 280 +4.7% STD organic growth H.V. 77% 81% 1Q’24 1Q’25 1Q’24 1Q’25 margin 15.5% 15.9% Net Income Net Financial Position +27% -312 127 100 2,935 2,623 1,926 N
Slide 5: Agenda
Agenda 1 1Q 2025 KEY MESSAGES 2 PIRELLI & C. – 1Q 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1Q 2025 RESULTS 4 Wednesday, 14 May, 2025
Slide 6: 1Q 2025 Strategic programs delivery
1Q 2025 Strategic programs delivery Car ≥18’’ (OE+Repl): +5% Pirelli vs +4% Mkt Global H.V. leadership further Mkt share gain in HV Replacement supported by OE pull-through COMMERCIAL strengthened and new Replacement lines Partnership with CTS to strengthen Nordics distribution 2 products launched f
Slide 7: Commercial Program 1Q25
Commercial Program 1Q25 Share gain in HV Replacement, lower exposure to Standard driven by mix improvement strategy in South America TOTAL CAR ≥18” 1Q’25 HIGHLIGHTS Market Pirelli 1Q’25 1Q’25 MARKET ▪ Total: positive 1Q’25 trend driven by Replacement. Global OE flat, impacted by weak car production
Slide 8: Innovation Program 1Q 2025: new HV product lines
Innovation Program 1Q 2025: 4 new HV product lines, boosting the performance level New Car Products New Motorcycle Products New The summer tyre designed for Premium cars Intended for performance cruiser motorcycles Excellent braking performance Custom-touring tyre with a sporty attitude ‘A’ rating o
Slide 9: Efficiencies program 1Q 2025
Efficiencies program 1Q 2025 In line with expectations and programs seasonality FY 2025 GUI 1Q 2025 MAIN PROJECTS accelerating Product Cost Design Modularity (tyre structure, weight and cost optimization). from Q2 High tech automation solutions in finishing, handling and material flow Manufacturing
Slide 10: 1Q 2025 Sales bridge
1Q 2025 Sales bridge Mid single-digit organic growth supported by a solid commercial performance € million +0.8% +3.9% +4.7% -1.0% +3.7% 1,696 1,776 1,759 14 66 (17) STD 77% 81% H.V. 1Q’24 Δ Volumes Δ Price/mix Organic Growth Δ Forex 1Q’25 1Q’24 +2.3% +2.3% +4.6% -4.8% -0.2% Volumes: positive perfor
Slide 11: 1Q 2025 Adjusted EBIT
1Q 2025 Adjusted EBIT Profitability improvement driven by internal levers, more than offsetting raw materials & input costs headwinds Net impact +25 Net impact +24 Net impact +1 263 42 (22) 4 25 (24) 280 (8) (5) 6 1Q margin 15.5% 15.9% 1Q’24 Volume Price/mix Raw Mat. FX Effic. Inflation D&A Other 1Q
Slide 12: 1Q 2025 Net Income
1Q 2025 Net Income Earnings growth thanks to higher operating performance and lower financial expenses, partially offset by higher taxes € million 51 (37) 127 100 17 (4) 0 1Q’24 Δ adj. EBIT Δ non recurr. / Δ Net Income / Δ Financial Δ Taxes 1Q’25 restr. costs loss from equity income / % of sales 5.9
Slide 13: 1Q 2025 Net Financial Position
1Q 2025 Net Financial Position Net Cash Flow in line with business seasonality Net Cash Flow (before dividends): -697 (-673 in 1Q’24) Operating Cash Flow: -555 (-538 in 1Q’24) 2,623 49 32 61 0 1,926 866 (399) 60 28 NFP FY ’24 EBITDA CapEx Increase in ∆ Work. Interests paid Taxes Paid Other Dividends
Slide 14: Gross Debt structure as of March 31th 2025
Gross Debt structure as of March 31th 2025 Liquidity margin covers 3.5 years of debt maturity protecting the company in current volatile markets. ESG linked financings on track with 2025 targets € million Net Financial Position Gross Debt maturity 3,857 (1,235) Liquidity position 1,250 Loan (1,002)
Slide 15: Agenda
Agenda 1 1Q 2025 KEY MESSAGES 2 PIRELLI & C. – 1Q 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1Q 2025 RESULTS 14 Wednesday, 14 May, 2025
Slide 16: Car Tyre demand in 2025: outlook confirmed
Car Tyre demand in 2025: outlook confirmed Replacement Consumer Demand still holding. Potential impact of GDP slowdown to be monitored Global car tyre market YoY % growth +1% -1% ÷ +1% ≥18" ~+4% + Mid-single digit ≤17" Negative flat low-single digit 2024 A 2025 E OE: declines low-single digit due to
Slide 17: Pirelli in US: update on tariffs and mitigation plan
Pirelli in US: update on tariffs and mitigation plan TARIFFS introduced by the US PIRELLI IN US - KEY FIGURES administration (as of May 14th 2025) MITIGATION PLAN >20% of group Revenues, mainly High Value Georgia high-tech plant US IMPORT FLOWS 25% from EU and Brazil from May 3rd Operations Import f
Slide 18: FY 2025 Targets confirmed
FY 2025 Targets confirmed 2024 2025 € billion Actual Guidance Volumes: ~ +1% ÷ +2% Net Sales 6.77 ~ 6.8 ÷ 7.0 Price/Mix: ~ +2% ÷ +3% Forex: ~ -2.5% ÷ -1.5% Adj. EBIT Margin 15.7% ~ 16% CapEx 0.42 ~ 0.42 % of Sales 6.1% ~ 6% Net Cash Flow 0.53 ~ 0.55 ÷ 0.57 bef. Dividends Net Financial Position 1.93
Slide 19: Agenda
Agenda 1 1Q 2025 KEY MESSAGES 2 PIRELLI & C. – 1Q 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1Q 2025 RESULTS 18 Wednesday, 14 May, 2025
Slide 20: Economic results summary
Economic results summary PIRELLI 1Q 2025 RESULTS 1 Adjustments refers to one-off, non recurring and restructuring expenses to the amount of €11.5M (€7.7M in 1Q 2024). With reference only to EBIT, amortization of intangible assets recognized as a 19 Wednesday, 14 May, 2025 consequence of Business Com
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet € million 31/03/2025 31/12/2024 31/03/2024 Fixed assets 8,723.1 8,771.6 8,826.3 Net working capital 889.7 51.2 982.9 % of net sales 13.0% 0.8% 14.8% Total net invested capital 9,612.8 8,822.8 9,809.2 Equity 6,013.1 5,912.3 5,868.7 Provisions 977.2 984.7 1,005.4 Net financi
Slide 22: Net Cash Flow
Net Cash Flow € million PIRELLI 1Q 2025 RESULTS 21 Wednesday, 14 May, 2025
Slide 23: Sustainability: delivering on Plan targets
Sustainability: delivering on Plan targets* 2023 2024 2025 2030 PEOPLE Accident Frequency Safety first Towards zero accident at work Index1 1.69 1.41 ~1 <1 Engagement & leveraging on employees Global Sustainable 83% 83% ≥80% ≥80% Retention listening and experience engagement Index constantly constan
Slide 24: ESG Indices: a globally acknowledged sustainability leadership
ESG Indices: a globally acknowledged sustainability leadership Update @ 14/05/25 Major rankings Last update Score Positioning in the reference sector Dow Jones Top score Auto Components Sustainability 2024 84 Index and Automotive sector 2025 TOP 1% ESG The only tyre maker in Top1% 2025 A A LIST – Ma
Slide 25: Raw material costs trend and mix
Raw material costs trend and mix Main raw materials price trend yearly avg.; Δ YoY 82.3 ; -17% YoY 79.8 ; -3% YoY 1.378 ; -11% YoY 1.743 ; +27% YoY $ / kg Brent Oil (in $ / barrel) $ / barrel Natural Rubber (in $ / kg) 130 1,95 115 1,70 100 85 1,45 70 1,20 55 40 0,95 2023 2024 25 0,70 10 J F M A M J
Slide 26: Pirelli manufacturing footprint
Pirelli manufacturing footprint U.K. Germany Romania Burton – Semi-finished Breuberg – Slatina – Car Carlisle – Car Car / Moto U.S. Rome – Car Russia Kirov – Car Voronezh – Car China Mexico Yanzhou – Car / Moto Italy Silao – Car Jiaozuo – Car Bollate – Cycling Shenzhou – Car
Slide 27: Disclaimer
Disclaimer In General. This disclaimer applies to this document and any oral comments of any person presenting it. This document, taken together with any such oral comments, is referred to herein as the “Presentation”. This document has been prepared by Pirelli & C. S.p.A. (“Pirelli” or the “Company