Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Pirelli & C Spa Azioni — FY 2024 Earnings Presentation
33 slides from Pirelli & C's earnings presentation, Feb 26, 2025
Slide 1: FY 2024 Preliminary Results
FY 2024 Milan Preliminary Results February 26th, 2025 FY 2023 Financial Results PIRELLI FY 2024 PRELIMINARY RESULTS Wednesday, 26 February, 2025 March 6th, 2024
Slide 2: Agenda
Agenda 1 FY 2024 KEY MESSAGES 2 PIRELLI & C. – FY 2024 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI FY 2024 PRELIMINARY RESULTS 1 Wednesday, 26 February, 2025
Slide 3: Key messages
Key messages 2024 results confirming a solid execution despite a challenging external scenario: • High Value position further strengthened, with market share gain across regions • Solid price/mix (+2.5%) driven by product mix enhancement • Profitability above targets, supported by internal levers (p
Slide 4: Agenda
Agenda 1 FY 2024 KEY MESSAGES 2 PIRELLI & C. – FY 2024 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI FY 2024 PRELIMINARY RESULTS 3 Wednesday, 26 February, 2025
Slide 5: FY 2024 results confirm the strength of our business model
FY 2024 results confirm the strength of our business model Net Sales Adjusted EBIT1 € million +1.9% +5.9% 6,650 6,773 1,002 1,061 +4.4% STD organic growth H.V. 75% 76% FY’23 FY’24 FY’23 FY’24 margin 15.1% 15.7% Net Income Net Financial Position 501 -336 496 2,262 1,926 NCF bef. Div. + €534M FY’23 FY
Slide 6: FY 2024 Sustainability achievements: People
FY 2024 Sustainability achievements PEOPLE Further decline in the accident Gender Balance Improvement Enhanced Employee Sense of frequency index1 achieved Belonging 1.41 on 1mln worked hours 28.3% 83% Women in Management Positions 2024 Sustainable -16.6% vs FY’23 +1.3 pp vs FY’23 Engagement Index IN
Slide 7: FY 2024 Sustainability achievements: Climate, Product, Nature
FY 2024 Sustainability achievements CLIMATE PRODUCT NATURE Reducing CO2 footprint in Increasing the % of bio-based Preserving freshwater through house and in our supply chain & recycled materials reduction of specific withdrawal - 57% - 26% reached 58.5% - 34.6% - 51.4% CO2 emission CO2 emission Bes
Slide 8: FY 2024 Strategic programs: delivery in line with targets
FY 2024 Strategic programs: delivery in line with targets Car ≥18’’ (OE+Repl): +5% in FY vs +4% Mkt Global H.V. leadership further HV OE market share gains, China drives outperformance COMMERCIAL strengthened HV Repl. Outperforms in all regions, thanks to our OE pull-through model and new replacemen
Slide 9: Commercial Program: Pirelli outperforming market, driven by HV
Commercial Program: Pirelli outperforming market, driven by HV TOTAL CAR ≥18” 4Q/FY HIGHLIGHTS Market Pirelli 4Q24 FY24 4Q24 FY24 MARKET ▪ Total: 4Q/FY trend supported by Replacement. 5% Weak global OE, South America rebounding in 4Q TOTAL 4% ▪ HV: Replacement overperformance in 4Q and FY; 1% 1% 1%
Slide 10: Cutting edge innovation
Cutting edge innovation Strengthening our leadership in HV homologations & upgrade of Regional lines to meet local customers' needs 306 NEW OE HOMOLOGATIONS #12 NEW PRODUCTS ~90% Higher rim sizes (≥19”) 7 Car products #2 Global Winner of Test ~65% Specialties (on ≥18”) Winter #5 Regional >50% of hom
Slide 11: Efficiencies in line with expectations and fully offsetting cost inflation
Efficiencies in line with expectations and fully offsetting cost inflation Design modularity, electrification of manufacturing, process digitalization and SGA cost reduction are driving efficiencies program Focusing on: FY 2024 4Q 2024 Modularity Product Cost ~10% of FY Design speed and virtualizati
Slide 12: FY 2024 Sales bridge
FY 2024 Sales bridge Solid organic growth supported by a sound commercial performance across the year. FX rebounding in 4Q € million +1.9% +2.5% +4.4% -2.5% +1.9% 6,650 6,937 6,773 122 165 (164) STD H.V. 75% 76% FY’23 Δ Volumes Δ Price/mix Organic Growth Δ Forex FY’24 4Q’24 +0.5% +1.8% +2.3% +4.3% +
Slide 13: FY/4Q 2024 Adjusted EBIT
FY/4Q 2024 Adjusted EBIT Profitability improvement supported by internal levers (volumes, price/mix and efficiencies) Net impact +62 Net impact +62 Net impact +1 1,002 110 (24) (25) 143 (142) 1,061 49 (22) (30) Commodities +26 FY -50 R&D / mktg. Exp. -22 FX Stock & Others -8 margin 15.1% 15.7% FY’23
Slide 14: FY 2024 Net Income
FY 2024 Net Income Earnings trend reflecting different dynamics: non-cash impact in 2024 and Patent-box benefits in 2023 € million 36 16 (93) 496 59 501 (13) FY’23 Δ adj. EBIT Δ non recurr. / Δ Net Income / Δ Financial Δ Taxes FY’24 restr. costs loss from equity income / % of sales 7.5% partecipatio
Slide 15: FY/4Q 2024 Net Financial Position
FY/4Q 2024 Net Financial Position Strong cash generation driven by a solid operating performance Net Cash Flow (before dividends): 534 (509 in FY’23) Operating Cash Flow: 989 (1,025 in FY’23) 2,262 1,926 198 47 (1,520) 159 249 119 (3) 415 NFP FY ’23 EBITDA CapEx Increase in ∆ Work. Interests paid Ta
Slide 16: Gross Debt structure as of December 31th 2024
Gross Debt structure as of December 31th 2024 Liquidity margin covering 4.5 years. Sound Investment Grade metrics sustained by liquidity profile, strong cash generation & reduced financial leverage € million Net Financial Position Gross Debt maturity 3,833 (1,907) Liquidity position 1,251 Loan Bond
Slide 17: Agenda
Agenda 1 FY 2024 KEY MESSAGES 2 PIRELLI & C. – FY 2024 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI FY 2024 PRELIMINARY RESULTS 16 Wednesday, 26 February, 2025
Slide 18: Geopolitical risks are rising and impacting the macroeconomic scenario in 2025
Geopolitical risks are rising and impacting the macroeconomic scenario in 2025 Trade tensions are looming with effects on GDP and inflation World GDP World inflation YoY % CPI YoY % 2.7 2.6 2.5 2.3 2024 Ind. Plan 2.3 4.7 4.5 Budget assumptions1 3.1 3.4 Trade war risk2 2024 2025 2024 2025 Trade war r
Slide 19: Car Tyre demand in 2025: resilience confirmed for ≥18'' segment
Car Tyre demand in 2025: resilience is confirmed for ≥18’’ segment Demand for ≤17'' still weak in key Standard regions Global car tyre market YoY % growth O.E.: declines low-single digit due to weak car production in EU & N.A. +1% -1% ÷ +1% + Mid-single ≥18" ~+4% digit REPL.: flat / slightly positiv
Slide 20: Main priorities to strengthen Pirelli HV technological leadership
Main priorities to strengthen Pirelli HV technological leadership & cope with the new scenario Forefront ‘Transformational’ Value Chain Product Innovation Efficiency Resilience & Rebalance Consolidate High Value Expedite our competitiveness Reshape our value chain, seizing leadership, through innova
Slide 21: Forefront product innovation in 2025
Forefront product innovation in 2025 Supporting High Value growth Accelerated by joint development cooperation with Bosch Further exploring intelligent tyre technology with Cyber Tyre Supply agreements with Prestige and Premium carmakers Widening OE portfolio, while responding to OEMs newcomers’ cha
Slide 22: Transformational efficiency in 2025
Transformational efficiency in 2025 Competitiveness programs boosted by automation and digital solutions Gross Impact 2025 ~150Mln € Main Projects on-going Industrial Plan ’24 forecast ~135M€ Product Cost Product Cost New product design concept: reducing product cost while increasing design speed ap
Slide 23: Mitigation Plan on US Duties
Mitigation Plan on US Duties Pirelli in US: key figures >20% of group Revenues, mainly High Value Detroit New York >50% from Mexican plant, ~ 40% from Brazil & EU Rome, Georgia Atlanta Georgia high-tech plant producing ~0.4 mln tyres Pirelli operations in the US 2025 Contingency Plan in case of duti
Slide 24: FY 2025 Guidance
FY 2025 Guidance Targets do not include US tariffs impact, due to uncertainties related to these measures & timing of their application 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
Slide 25: Sustainability targets confirmed
Sustainability targets confirmed 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 constantly CLIMATE
Slide 26: Agenda
Agenda 1 FY 2024 KEY MESSAGES 2 PIRELLI & C. – FY 2024 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI FY 2024 PRELIMINARY RESULTS 25 Wednesday, 26 February, 2025
Slide 27: Economic results summary
Economic results summary 4Q 2024 4Q 2023 ∆ YoY FY 2024 FY 2023 ∆ YoY Net Sales 1,588.8 1,489.9 +6.6% 6,773.3 6,650.1 +1.9% Organic variation +2.3% +4.4% adjusted EBITDA1 362.5 330.3 +9.7% 1,519.5 1,446.1 +5.1% % of net sales 22.8% 22.2% +0.6 p.p. 22.4% 21.7% +0.7 p.p. reported EBITDA 341.5 279.4 +22
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet € million 31/12/2024 31/12/2023 Fixed assets 8,771.6 8,812.1 Net working capital 51.2 67.2 % of net sales 0.8% 1.0% Total net invested capital 8,822.8 8,879.3 Equity 5,912.3 5,619.6 Provisions 984.7 998.0 Net financial position 1,925.8 2,261.7 Total financing and sharehold
Slide 29: Net Cash Flow
Net Cash Flow 1Q 2024 2Q 2024 3Q 2024 4Q 2024 4Q 2023 FY 2024 FY 2023 € million Adjusted Operating income (EBIT) 262.6 276.5 276.8 244.6 219.3 1,060.5 1,001.8 Amortiz. & depreciations (excl. PPA amortiz.) 113.7 115.5 111.9 117.9 111.0 459.0 444.3 Investments in tangible and intangible assets (Capex)
Slide 30: ESG Indices: a globally acknowledged sustainability leadership
ESG Indices: a globally acknowledged sustainability leadership Update @ 25/02/25 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 31: Raw material costs trend and mix
Raw material costs trend and mix Main raw materials price trend yearly avg.; Δ YoY 98.9 ; +40% YoY 82.3 ; -17% YoY 79.8 ; -3% YoY 1.548 ; -8% YoY 1.378 ; -11% YoY 1.743 ; +27% YoY $ / kg Brent Oil (in $ / barrel) $ / barrel 1.95 Natural Rubber (in $ / kg) 130 115 1.70 100 85 1.45 70 1.20 55 40 0.95
Slide 32: 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 33: 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
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