Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Q1 2007 Earnings Presentation
24 slides from Pirelli & C's earnings presentation, May 10, 2007
Slide 1: 1Q 07 Group Results
1Q 07 Group Results Milan, 10th May 2007 0
Slide 2: Disclaimer
DISCLAIMER This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current ex
Slide 3: Key Events – After 1Q 2007
KEY EVENTS – AFTER 1Q 2007 • 2nd April 2007 - Financial instruments from disposal of cables sold to Goldman Sachs for an amount of approximately € 246 mn • 28th April 2007 - Pirelli and Sintonia agreement for sale of 100% of Olimpia for more than € 4 bn • 4th May 2007 - Pirelli sells 3% of Intek to
Slide 4: Olimpia Deal
OLIMPIA DEAL • On 28th of April 2007, Pirelli and Sintonia signed and agreement for the disposal of the 100% of Olimpia to primary institutional financial investors and industrial operators for an amount of more than € 4 bn • The amount to be received by Pirelli is around € 3.3 bn, equal to 80% of t
Slide 5: Pirelli Group Structure
PIRELLI GROUP STRUCTURE Main Shareholders (*) Pirelli & C. Camfin 19.6% Mediobanca 4.4% Edizione Holding 4.4% Fondiaria SAI 4.2% R.A.S. 4.2% 100% Assicurazioni Generali 4.2% Pirelli Labs 100% 61.1% 50.3% 51% 80% Discontinued Operations Pirelli Pirelli Pirelli Pirelli Broadband Olimpia Tyre Real Esta
Slide 6: Pirelli Worldwide Presence
PIRELLI WORLDWIDE PRESENCE 24 Plants 12 Countries Enhanced production and presence 30,269 Employees in Brazil, Romania, China Industrial Sales Breakdown by Geographical Area (FY 2006) Asia, Africa and Pacific Italy 14% 15% Central and South America 25% North America Rest of Europe 8% 38% 5
Slide 7: 1Q 07 Pirelli Group Results
1Q 07 PIRELLI GROUP RESULTS €/mn 1Q 07 1Q 06 IAS/IFRS IAS/IFRS ∆ 07/06 Net Sales (as reported) 1,811.3 1,206.1 +50.2% Net Sales (2007 excluding DGAG effect) (*) 1,303.7 1,177.1 +10.8% EBITDA 181.6 174.1 +4.3% EBITDA margin (2007 excluding DGAG effect) 13.9% 14.4% EBIT 129.5 119.8 8.1% EBIT margin (2
Slide 8: 1Q 2006 – 1Q 2007: Group EBIT Variation
1Q 2006 – 1Q 2007: GROUP EBIT VARIATION €/mn 129.5 119.8 (4.1) 2.9 4.5 (3.1) 9.5 For Pirelli RE the significant value is the EBIT including Result from Equity Participation: € 8.4 mn Group Tyre EBIT Pirelli Pirelli RE Ambiente Others Group EBIT at Proadband EBIT EBIT EBIT at 31.03.06 Solution 31.03.
Slide 9: 1Q 2007 Pirelli Tyre Results
Reco 1Q 2007 Pirelli Tyre Results
Slide 10: 1Q 07 Pirelli Tyre Results
1Q 07 PIRELLI TYRE RESULTS €/mn 1Q 07 1Q 06 Variation IAS/IFRS IAS/IFRS Net ∆Price/mix: +5.2% 1,060.0 1,000.4 +6.0% Sales ∆Volumes: +3.9% ∆Actual Variation: + 9.1% EBITDA 150.9 148.7 ∆Exch. Rates: -3.1% ∆Total: +6.0% EBITDA margin 14.2% 14.9% EBIT 103.7 99.2 +4.5% ∆Commercial Variations: € 27.8 mn ∆
Slide 11: 1Q Pirelli Tyre Results by Business Segment
1Q 07 PIRELLI TYRE RESULTS BY BUSINESS SEGMENT €/mn 1Q 07 1Q 06 Variation IAS/IFRS IAS/IFRS CONSUMER Sales 740.3 699.0 +5.9% EBIT 77.6 71.7 +8.2% ROS 10.5% 10.3% INDUSTRIAL Sales 319.7 301.4 +6.1% EBIT 26.1 27.5 -5.1% ROS 8.2% 9.1% • Consumer sales organic growth up 8.4% driven by volumes mainly in
Slide 12: 1Q 2007 Pirelli Broadband Solutions Results
1Q 2007 Pirelli Broadband Solutions Results
Slide 13: 1Q 07 Pirelli Broadband Solutions Results
1Q 07 PIRELLI BROADBAND SOLUTIONS RESULTS €/mn 1Q 07 1Q 06 IAS/IFRS Variation IAS/IFRS Net 25.1 38.5 -34.8% Sales EBITDA (3.4) (0.4) n.m. EBITDA margin n.m. n.m. EBIT (3.8) (0.7) n.m. EBIT margin n.m. n.m. Net Income (4.2) (1.7) n.m. • Product-mix and different purchasing planning of the telecom ope
Slide 14: Pirelli Broadband Solutions: Fields of Activity
PIRELLI BROADBAND SOLUTIONS: FIELDS OF ACTIVITY BBA: ENLARGING CLIENTS PORTFOLIO PHOTONICS: AND PRODUCTS BECOMING A REALITY • CWDM City 8TM enhancement to 10 Gbits • ADSL2/2+ deployment on track • DTL and ITLA market sales • SET-TOP-BOX start-up sales • Launch of Transponder MSA300 expected Access D
Slide 15: 1Q 2007 Pirelli Ambiente Results
1Q 2007 Pirelli Ambiente Results
Slide 16: Pirelli Ambiente: Environmental Group's Solutions
PIRELLI AMBIENTE: ENVIRONMENTAL GROUP’S SOLUTIONS PIRELLI AMBIENTE PIRELLI AMBIENTE PIRELLI AMBIENTE ECO TECHNOLOGY RENEWABLE ENERGY SITE REMEDIATION Energy recovery from Environmental Gecam TM, Filters municipal solid waste Reclamation (SRF-P) Reducing CO 2 Reducing the Global solutions for emissio
Slide 17: 1Q 2007 Pirelli Ambiente Results
1Q 2007 PIRELLI AMBIENTE RESULTS €/mn 1Q 07 1Q 06 Variation IAS/IFRS IAS/IFRS Sales 17.4 21.4 -18.7% EBIT (1.7) 2.4 (*) n.m. Net Income (1.7) 2.0 n.m. (*) Including € 2.9 mn of agreement with RE Energy for CDR • Sales consolidation of Gecam and start-up business of anti-particulate filters for indus
Slide 18: 1Q 2007 Pirelli Real Estate Results
1Q 2007 Pirelli Real Estate Results
Slide 19: Pirelli RE Recent Achievements
PIRELLI RE RECENT ACHIEVEMENTS • Revenues (Pro –Quota) reached € 405.8m (+38%) vs Q1-06 • EBIT including Income from Equity Participations € 47.3m or 22% increase vs last year, Net Income € 19 mn vs € 30 mn in 1Q 06 • Real Estate Asset sales at 100% amounting to € 641mn (+41%) • Acquisition (100%) a
Slide 20: 1Q 07 Pirelli RE Consolidated P&L
1Q 07 PIRELLI RE CONSOLIDATED P&L 1Q 07 1Q 06 ∆ 07/06 IAS/IFRS IAS/IFRS % €/mn Pro-quota Aggregate Revenues 405.8 293.4 Consolidated Revenues (*) 201.0 142.1 EBIT Incl. Income from Equity Participations 47.3 38.9 +22% Profit before taxes 32.2 39.2 Net Attributable Income 19.0 30.1 (*) Not including
Slide 21: 1Q 07 Pirelli RE Consolidated Balance Sheet
1Q 07 PIRELLI RE CONSOLIDATED BALANCE SHEET 1 Q 07 1Q 07 1Q 06 Pro-Forma after €/mn IAS/IFRS DGAG decons. IAS/IFRS Fixed Assets 598.5 623 435.5 (of which Investments in Participated Company and Funds) 346.5 361 328.9 Net Working Capital 1,182.8 267 199.6 Net Invested Capital 1,781.3 890 635.1 Shareh
Slide 22: Pirelli Group Outlook 2007
PIRELLI GROUP OUTLOOK 2007 • WE CONFIRM 2007 INCREASE IN RESULTS, WITH A SOUND FINANCIAL STRUCTURE 21
Slide 23: Back-up Slides
BACK-UP SLIDES 22
Slide 24: 1Q 2007 – Pirelli Group Results
1Q 2007 – PIRELLI GROUP RESULTS PIRELLI PIRELLI PIRELLI PIRELLI Other GROUP TYRE BROADB.SOLUT. REAL ESTATE AMBIENTE PIRELLI & C. CONS. €/mn 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06 31.03.07 31.03.06 Sales 1,060.0 1,000.4 25.1 38.5 708.6 142.1 17.4 21.