Slide 1: FY '09 Pirelli Results & 2010 Outlook
Reco FY ’09 PIRELLI RESULTS & 2010 OUTLOOK
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute forward-looking statements and does not constitute an offer or solicitation for the sale. purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of the financial community. These statem
Slide 3: Agenda
Agenda Pirelli FY’09 Results review 2010 Outlook & Targets Pirelli Tyre & Parts Pirelli Real Estate Appendix 2
Slide 4: Pirelli FY'09 Key Messages
Pirelli FY’09 Key Messages Strategic Goals Actions Results COMPETITIVENESS We exploited our exposure in Consolidated share in all markets, emerging markets especially in South America Vigorous marketing strategy Best tyre market performance in the Development of new energy- industry effic
Slide 5: Pirelli FY'09 results vs targets
Pirelli FY’09 results vs targets €/bln FY’09 Targets FY’09 revised FY’09 Results (Feb.’09) Targets (Nov.’09) Revenues ~ 4.3 > 4.3 4.5 of which “Green Performance” 25% 25% 25% (+5 p.p. YoY) EBIT % After continuous restructuring* 4.5-5.0% ~ 4.5% 4.9% Capex 0.7 in ’09-’11 plan 0.22 NFP 1.0 ~ 0.7 0.5 (*
Slide 6: Pirelli Key Financial Results
Pirelli Key Financial Results €/mln FY’09 FY’08 YoY 4Q’09 4Q’08 YoY 4Q’09 Results Drivers Revenues 4,462.2 4,660.2 -4.2% 1,154.8 992.2 +16.4% Tyre top line strong rebound (+18.7% yoy) Organic growth (*) -3.3% +11.7% sustained by market share increase in all EBITDA before Restruct. Costs 508.1
Slide 7: Pirelli EBIT trend
Pirelli EBIT trend €/mln Organic EBIT: 136.8 53.6 56.6 (139.8) 4Q trend 40.7 0.9 6.1 85.8 3.3 Eco Real Broadband Other Restruct. 4Q’09 4Q’08 Tyre Tech Estate access activities Costs €/mln Organic EBIT: 109.6 64.6 217.4 14.6 0.6 FY trend 1.0 94.8 (1.4) 43.2 Eco Real Broadband Other Restruct. FY’0
Slide 8: Pirelli attributable net income FY'09 vs FY'08
Pirelli attributable net income FY’09 vs FY’08 250.3 (63.9) (30.7) 22.7 (63.4) (19.7) 123.4 174.2 (347.5) FY’08 EBIT Results Deval./sale Other results financial discontinued minorities FY’09 from equity particip. from particip. charges operations particip. PRE in listed co. and taxes 7
Slide 9: Dividend Proposal
Dividend Proposal Parent Company Net Income: 112.6 €/mln (vs -189.5 €/mln in 2008) Dividend Proposal to be submitted to Pirelli & C. AGM (21 April 2010) DPS N° of Shares* Dividends mln €/mln Ordinary shares 1.45 €/cent 5,229 75.8 Saving shares 4.06 €/cent** 130 5.3 81.1 72% of parent company Net I
Slide 10: Pirelli FY'09 net financial position
Pirelli FY’09 net financial position €/mln EBIT before restr. 297.0 Dep/Am: 211.1 Capex: (227.8) NWC & others: 275.8 TI sale 191.8 PRE cap subscribed minorities 162.9 1,027.7 106.2 183.3 528.8 (232.3) (556.1) FY’08 Operating Fin. Inc./Expen. Cash out Others FY’09 Cash Flow & taxes Restr. Costs 9
Slide 11: Pirelli Debt Structure as of December 31, 2009
Pirelli Debt Structure as of December 31, 2009 Net Financial Position Gross Debt Maturity €/mln 1,824 1,295 237 1,119 Committed Line 1,061 Drawdown 976 529 150 143 Other Borrowing 763 50 318 100 35 283 Gross Fin. Net Fin. Debt Assets* position Gross Debt maturity as of Dec. 31, 2009 18% 8% 61% 13% F
Slide 12: Agenda: 2010 Outlook & Targets
Agenda Pirelli FY’09 Results review 2010 Outlook & Targets Pirelli Tyre & Parts Pirelli Real Estate Appendix 11
Slide 13: 2010 Outlook
2010 Outlook Growing with value into a "pure Tyre company, a frontrunner in Green Performance" Tyre and Parts .... ready for a new leap forward on a solid ground. Tyre ongoing growth by business differentiation improvement of our cost competitiveness investments acceleration to build up capacity
Slide 14: Pirelli 2010 - 2011 targets
Pirelli 2010 - 2011 targets €/bln 2010 2011 Targets 2009 A Targets (’09-’11plan) Group Revenues 4.5 4.7-4.8 4.7-4.8 of which “Green Performance” 25% 33% 40% EBIT % New 3Y 4.9% 6.5-7% ~ 8% post restructuring industrial plan (2011-2013) will be announced before 2010 ye Capex 0.22 >0.3 0.7 in 3Y plan N
Slide 15: Agenda: Pirelli Tyre & Parts
Agenda Pirelli FY’09 Results review 2010 Outlook & Targets Pirelli Tyre & Parts 4Q’09 Results 2010 Outlook & Targets Pirelli Real Estate Appendix 14
Slide 16: FY'09 Results: exceeding our targets twice
FY’09 Results: exceeding our targets twice €/bln FY’09 Targets FY’09 revised FY’09 Results (Feb.’09) Targets (Nov.’09) Revenues 3.8 ~3.9 4.0 EBIT % 6.5/ 7.0% ≥ 7.0% 7.7% After continuous restructuring Cost reduction program 0.2 0.2 NFP 1.3* 1.0 (*) before dividends 15
Slide 17: 4Q'09: The best quarter of the year
4Q’09: The best quarter of the year Strong top line rebound: +18.7% yoy thanks to market share increase in all major markets (except Russia) and the exposure to high growth markets (50% of our revenues). Double-digit margin on both Consumer and Industrial: 10% EBIT margin before restructuring cost
Slide 18: Pirelli Tyre quarterly performance
Pirelli Tyre quarterly performance €/mln 1Q’09 YoY% 2Q’09 YoY% 3Q’09 YoY% 4Q’09 YoY% FY’09 YoY% Revenues 926.9 -13.9% 989.0 -9.2% 1,042.7 -1.9% 1,034.3 +18.7% 3,992.9 -2.6% EBITDA (before 107.8 -28.6% 133.0 -1.8% 142.0 +54.7% 155.2 +146.7% restruct. costs) 538.0 +21.9% margin 11.6% -2.4 p.p. 13.4% +
Slide 19: Pirelli Tyre operating performance
Pirelli Tyre operating performance €/mln +15.3 0.4 Raw materials: +81.5 +76.7 104.7 Labour / energy / other: (4.8) (14.1) 4Q’09 Price/mix trend 4Q trend reflects a higher comparison base +30.8 (price/mix +14% in 4Q08) 18.9 and the increasing OE channel weight in 4Q09 (23.3) (+4pp yoy) EBIT 4Q’08
Slide 20: Pirelli Tyre NFP evolution
Pirelli Tyre NFP evolution €/mln 30 35 8 1,299 1,027 4Q trend EBIT (before restr. costs): 105 (345) Invest. & Depreciation: (69) Δ NWC & others: 309 9M’09 Exchange Restructuring Financial Operating FY’09 rate Cash out charges / Cash Flow Taxes 166 62 67 38 1,267 (11) 1,027 FY trend (562) EBIT
Slide 21: Consumer Business: market trends in FY'09
Consumer Business: market trends in FY‘09 Market trends Car tyre shipments. % (yoy) 1Q’09 2Q‘09 3Q‘09 4Q‘09 FY‘09 +18% OE Europe -1% -34% -12% -20% +12% +1% Replacement -5% -8% 0% +2% North America OE -22% -32% +8% -49% -48% +3% Replacement -10% -3% -13% +44% Mercosur OE -8% -1% -18% -10% +18% +7% +
Slide 22: Consumer Business: Pirelli economics in FY'09
Consumer Business: Pirelli economics in FY‘09 €/mln 1Q ‘09 YoY% 2Q ‘09 YoY% 3Q ‘09 YoY% 4Q ‘09 YoY% FY ‘09 YoY% Highest profitability in 4Q supported by: Revenues 670.5 -10.4% 701.5 -6.0% 736.0 +3.1% 719.8 21.2% 2,827.8 +0.9% Winter tyre in Europe EBITDA (before Strong sales in South restruct. c
Slide 23: Industrial Business: market trends in FY'09
Industrial Business: market trends in FY‘09 Market trends Car tyre shipments, 1Q’09 2Q‘09 3Q‘09 4Q‘09 FY‘09 OE Europe -62% -44% -75% -66% -64% +12% Replacement -33% -25% -14% -16% +16% OE Mercosur -26% -29% -27% -19% +23% Replacement -22% -16% -10% -9% OE: Mercosur, the first market to recover R
Slide 24: Industrial Business: Pirelli economics in FY'09
Industrial Business: Pirelli economics in FY‘09 €/mln 1Q ‘09 Δ% 2Q ‘09 Δ% 3Q ’09 Δ% 4Q ’09 Δ% FY ‘09 Δ % Revenues 256.4 -22.0% 287.5 -16.3% 306.7 -12.2% 314.5 +13.4% 1,165.1 -10.3% Strong volumes rebound also driven by fleet EBITDA (before restocking and trade restruct. costs) 30.4 -28.1% 42.6 -7.
Slide 25: Agenda: Pirelli Tyre & Parts
Agenda Pirelli FY’09 Results review 2010 Outlook & Targets Pirelli Tyre & Parts 4Q’09 Results 2010 Outlook & Targets Pirelli Real Estate Appendix 24
Slide 26: Our Strategic Guidelines for 2010
Our Strategic Guidelines for 2010 1 A different growth strategy by business Consumer Industrial Pirelli Brand enhancing Premium Segment Further exposure in Emerging Markets to best seize positioning (>70% of Consumer) in Europe growth opportunities and North America 27% 22% 18% Europe Full exp
Slide 27: Our growth strategy in the Consumer market
Our growth strategy in the Consumer market … Market Outlook Our Growth Strategy Car tires, Mln pieces North America +4÷5% Keep growing our market share in the 1000 Replacement segment: new products, new Replacement customers, brand pull 800 EMEA 2010 Replacement: +4% EU + Nafta +3% More selec
Slide 28: ... and in the Industrial market
… and in the Industrial market Market Outlook Our Growth Strategy Mln pieces. Percent. Radial + truck tires Emea +6÷7% Consolidate market recovery 140 Replacement 120 LatAm Consolidate leadership in Mercosur while 100 2010 Replacement: +5% increasing share in Central America EU + Nafta +4-5% E
Slide 29: Latin America: present & future leadership
Latin America: present & future leadership LEADERSHIP Regional leadership with Net Sales of 1.9$/bln BEST RANGE No.1 local OEM Strategic supplier The only full range player: from 2 wheels tyres to Truck to Agro/OTR No.1 BRAND Top of Mind Brand in Mercosur with 100 yrs of history in Argentina
Slide 30: Cinturato: introducing the Green Performance concept
Cinturato: introducing the Green Performance concept THE TECHNOLOGY Distinctive features offered by new Patented Pirelli Twinscrew compound mixing process, enhancing LRR without compromising performance and safety THE MARKET 2010 winner of the most popular summer tyre tests in Europe (ADAC, OMT,
Slide 31: Test Summer 2010 – Pirelli on the top
Test Summer 2010 – Pirelli on the top “Very balanced tyre; good on wet and dry surfaces; “Very balanced summer tyre with very high mark low fuel consumption; the lowest noise” on wet surface; low wear” Very Recommendable Very Recommendable 205/55R16 91V 205/55R16 91V “….Cinturato P7 competes both ha
Slide 32: Pirelli and Sustainable Performance
Pirelli and Sustainable Performance Worldwide leader in Autoparts and Tyre industry for the third consecutive year Best in class for Economic, Environmental and Social dimension; Pirelli rating: 88% (+11pp yoy) vs. Autoparts & Tyre average 48% rating Excellence Areas: Health & Safety, Brand Ma
Slide 33: '09-'11 Pirelli Tyre Cost reduction program update
‘09-‘11 Pirelli Tyre Cost reduction program update 2009 COST REDUCTION PROGRAMS 2010 Target ACHIEVEMENT 15% rightsizing in high-cost Labour countries; bonus and pay freeze for management and staff in 2009 360° purchasing contracts >60 €/mln of 200 €/mln of renegotiation gross savings gross savings
Slide 34: An accelerated investment plan: key projects
An accelerated investment plan: key projects (capacity increase from 2009 to 2011) RUSSIA Greenfield start up ITALY New green factory ROMANIA + 60% Car Tyres CHINA + 20% Truck Tyres + 100% Car Tyres EGYPT + 20% Truck Tyres MERCOSUR + 20% Truck Tyres + 25% Car Tyres Over 300 €/mln investments in 2010
Slide 35: Pirelli Tyre target 2010
Pirelli Tyre target 2010 €/mln REVENUES EBIT (post restructuring costs) +6-8% 308.5 4.100 -2.6% 7.7 3.993 Ebit margin -6 ÷ -7% 150.7 % ~ flat vs. ’09 FY 3.7% 2008 2009 2009A 2010E 2011 2008A 2009A 2010E 3y Plan 3y Plan Note: at current exchange rates 34
Slide 36: Pirelli Eco Technology: FY'09 Key Financial Results
Pirelli Eco Technology: FY’09 Key Financial Results €/mln 1Q ’09 YoY 2Q ’09 YoY 3Q ’09 YoY 4Q ’09 YoY FY ’09 YoY Revenues 14.3 -13.9% 14.0 -16.7% 10.5 -25.5% 17.8 +15.6% 56.6 -10% of which Filters 3.7 4.5 2.7 7.6 280% 18.5 236% Gecam 10.6 9.5 7.8 10.2 -24% 38.1 -34% Ebitda (2.3) (2.1) (2.8) (1.9) -6
Slide 37: Pirelli Eco Technology outlook
Pirelli Eco Technology outlook Conservative 2010 Filters sales plan, while waiting for decision-making process on DPF adoption in Italy, France, Spain Reduced 2010 Gecam sales plan due to additional taxation in Italy and France Improved efficiency from Rumanian factory Investments linked to new
Slide 38: Agenda: Pirelli Real Estate
Agenda Pirelli FY’09 Results review 2010 Outlook & Targets Pirelli Tyre & Parts Pirelli Real Estate Appendix 37
Slide 39: 3 Steps Paving the Way for a Turnaround
3 Steps Paving the Way for a Turnaround REFOCUS REBALANCE EFFICIENCY Focus on core business; disposal of non-core Capital structure rebalance Structure optimization assets We are positioning the company to regain market confidence and capture future sustainable growth as proved by 2009 achievements
Slide 40: 2009 Achievements
2009 Achievements Management change Business model renewal Strategic partnership with Intesa Sanpaolo in Fund Management (10% SGR stake) Trading & SOHO* real estate assets disposal of approx. 250 €/mln REFOCUS Non-strategic participations disposal: 20% UPIM (completed in January 2010) Italia
Slide 41: FY'09 results vs targets
FY’09 results vs targets Targets Results FY FY 2008 (26 May’09) 2009 Real Estate Assets Sales 865€/mln 1€/bln 1,031€/mln - Italy 570€/mln 613€/mln - Germany 185€/mln 380€/mln - Poland 110€/mln 38€/mln EBIT + IEP before special -59.7€/mln -25/-35€/mln -26.1€/mln effects* Fixed cost savings -19€/mln -
Slide 42: Consolidated Profit and Loss
Consolidated Profit and Loss €/mln Actual Actual Actual December 2009 September 2009 December 2008 Revenues 271.7 199.2 365.1 of which service activities 187.3 137.4 224.3 of which other revenues 84.4 61.8 140.8 EBIT services (5.7) (8.4) (31.9) Income from equity participations 13.51) 7.9 1.6 Servic
Slide 43: Segment Report
Segment Report €/mln Italy Germany Poland NPL G&A Total 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Delta Service platform 32.0 11.3 1.3 (9.7) (1.1) (2.0) (4.0) 3.7 28.2 3.3 7.8 (30.3) G&A (20.5) (33.5) (20.5) (33.5) Investment (3.3) (18.8) (2.8) (14.5) 1.2 21.8 (9.5) 4.3 0.9 (14.4)
Slide 44: Pirelli RE: Key data as of Dec. 2009
Pirelli RE : Key data as of Dec. 2009 €/mln Mkt. Book Net Mkt. UCG NAV NIC Value Value Debt IAS Value PRE 26% Quota LTV4) Quota Quota Quota Quota 40%7) 100% 1) average PRE2) PRE5) PRE6) PRE PRE3) ITALY 6,753 1,893 1,757 136 1,090 58% 803 613 47% GERMANY 7,036 1,723 1,693 30 1,369 79% 354 233 53% POL
Slide 45: Asset Allocation by Country (Market Value)
Asset Allocation by Country (Market Value) €/bln Market Value Dec. 2009: 16.0 €/bln Market Value Dec. 2008: 17.3 €/bln NPL 1.61) NPL 1.91) Real Estate 14.4 Real Estate 15.4 Of which partecipated 14.0 Of which partecipated 15.0 o/w Real o/w Real Estate Estate Poland 1% Poland 1% Germany Germany 49% 4
Slide 46: NFP excl. Shareholders' Loans
NFP excl. Shareholders’ Loans €/mln As of end of February, Pirelli RE has committed bank lines amounting to 430 €/mln (in addition to the intercompany facility granted by Pirelli & C.) with an average duration of 25 months 898.4 861.8 828.5 40.4 445.8 31.1 (399.3) 447.4 29.2 (3.8) (113.6) NPL (sal
Slide 47: Financial situation of participated vehicles/funds
Financial situation of partecipated vehicles/funds 100% 11.1 €/bln 3.0 0.5 2.5 SPVs NET DEBT Pro-Quota NPL RE Assets Refinancing needs 2,487 219 344 472 1,452 RE Assets 2010 2011 2012 Beyond Bank Loan characteristics (*) Average duration ~ 3,6 years (pro-quota PRE 3,4) Average costs of debt 3.7%
Slide 48: Update on Headcount and Cost Savings
Update on Headcount and Cost Savings €/mln Reduction from 2,956 in 2007 Headcount to 1,097 end of 2009 decrease 1,473 1,205 1,097 12/200 9/2009 12/2009 8 Consultancy costs +11 Marketing costs +5 36 Travel Cost Saving 68 Cost Savings Expenses +6 32 Headquarters +4 Labour Others Savings IT +4 costs fi
Slide 49: 2010 Strategy by country
2010 Strategy by country ITALY Portfolio optimization through active asset management Focusing on Fund management (SGR) leveraging on market leadership to exploit both internal and external growth Revamping the overall service proposition to increase third party market share with integrated and v
Slide 50: Economic and Financial Targets for 2010
Economic and Financial Targets for 2010 Stable AUM with a shift in geographical Real Estate Assets sales 1.3 / 1.5 €/bln distribution (increase in Italy and continuous reduction abroad) Co-investments to 22-23% Continued disposal effort of low yield “Soho and Trading” assets (~200 €/mln) EBIT
Slide 51: Year to come: Profit & Loss trend by activities
Year to come: Profit & Loss trend by activities Targets confirmed RESULTS 2008 2009 2010E 2011E Continuous focus on management platform turnaround; Lower break-even point thanks to a two-year Services Platform - = + €50 95€mln cost reduction program (approx. 70% already completed in 2009) Com
Slide 52: Appendix
Appendix | | PIRELU FY '09 PIRELLI RESULTS & 2010 OUTLOOK =51 | IRELLI
Slide 53: Pirelli Group – FY'09 Results
Pirelli Group – FY’09 Results Profit & Loss and Net Financial Position by Business Unit Pirelli €/mln Pirelli Tyre Eco Technology Pirelli Real Estate Broadband Access Others Pirelli & C. Cons. FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 Sales 3,992.9 4,100.2 5
Slide 54: Pirelli Group – FY'09 Results
Pirelli Group – FY’09 Results Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Ambiente PZero Others Total Other FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 FY ’09 FY ’08 Sales 3.6 5.1 5.0 3.6 0.3 (1.3) 8.9 7.4 ∆% -29.4% 38.9% EBITDA before Restruct Costs (2.3) (2.5) (3.7) (3.9)
Slide 55: Pirelli Group – 4Q'09 Results
Pirelli Group – 4Q’09 Results Profit & Loss and Net Financial Position by Business Unit Pirelli €/mln Pirelli Tyre Eco Technology Pirelli Real Estate Broadband Access Others Pirelli & C. Cons. 4Q ’09 4Q ’08 4Q ’09 4Q ’08 4Q ’09 4Q ’08 4Q ’09 4Q ’08 4Q’09 4Q’08 4Q ’09 4Q ’08 Sales 1,034.3 871.0 17.8
Slide 56: Pirelli Group – 9M'09 Results
Pirelli Group – 9M’09 Results Profit & Loss and Net Financial Position by Business Unit Pirelli €/mln Pirelli Tyre Eco Technology Pirelli Real Estate Broadband Access Others Pirelli & C. Cons. 9M ’09 9M ’08 9M ’09 9M’08 9M’09 9M’08 9M ’09 9M ’08 9M ’09 9M ’08 9M ’09 9M ’08 Sales 2,958.6 3,229.2 38.8
Slide 57: Pirelli Balance Sheet
Pirelli Balance Sheet €/mln FY ‘09 FY ‘08 Fixed Assets 3.596.2 3.686.7 Net Working Capital 203.1 397.1 Net Invested Capital 3,799.3 4,083.8 % Net Invested Capital 31.12.2009 31.12.2008 Equity 2,494.7 2,374.4 Provisions 775.8 681.7 P.Tyre 65.6% 62.7% Net Financial Position 528.8 1.027.7 Total Assets
Slide 58: Pirelli Group Cash Flow
Pirelli Group Cash Flow €/mln 1Q ‘09 2Q’09 3Q ‘09 4Q’09 FY’09 EBIT before restructuring costs 50.3 72.0 82.8 91.9 297.0 Depreciation 51.4 52.4 52.3 55.0 211.1 Net investments (42.9) (37.4) (32.0) (115.5) (227.8) Working capital/other variations (262.8) 96.7 84.4 357.5 275.8 FREE CASH FLOW (204.0) 18
Slide 59: Pirelli Group: Net financial position FY'09 by Business
Pirelli Group: Net financial position FY’09 by Business €/mln OTHER PIRELLI TYRE PRE CORPORATE BUSINESSES GROUP Gross Debt 1,553 489 101 276 1,824 to Corporate 411 72 73 Financial receivables (84) (415) (37) (561) (502) Cash and cash equivalents (442) (33) (4) (314) (793) Net Financial Position 1,02
Slide 60: World Tyre Market
World Tyre Market Delta share 2008 vs 2000 (PNT) Total Market Market + 7.2% Share Bl$ % 140 120.0 128 131 20,0% 112 Bridgestone -3.2 90.0 102 15,0% Michelin -3.0 93 81 Goodyear -5.6 70 72 69 60.0 10,0% Continental -1.4 30.0 5,0% Pirelli +0.6 0.0 0,0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Slide 61: FY'09 Pirelli Tyre Mix
FY’09 Pirelli Tyre Mix Sales by segment Sales by region Latin Europe Car America 42% 63% Motorbike 8% 34% Steelcord & others 2% MEA 10% Asia Truck North Pacific 27% America 6% 8% Sales by channel Replacement 77% OE 23% 60
Slide 62: Pirelli Tyre Selective Positioning in the Consumer Segment
Pirelli Tyre Selective Positioning in the Consumer Segment Sales Breakdown By Area Pirelli Focus Production By Area % of production Segment Share % of production 100% 100% 100% 100% High <39% <30% Emea Cost 38% Prestige 56% North America 27% Premium Low 11% >61% >70% South Cost 6% America 28% Asia 2
Slide 63: Industrial Segment: a Unique Competitive Position
Industrial Segment: a Unique Competitive Position Sales Breakdown By Area Pirelli Focus Production By Area % of production % of production 100% 100% 100% 100% Southern EU 13% <10% Emea 27% High and Near-East Cost 44% North 15% America China South 11% Latin America America North 48% Africa Low Asia 8
Slide 64: FY'09 Pirelli Tyre People
FY’09 Pirelli Tyre People Headcount People by region 28,601 Europe North America 27,481 1% Latin 38% America 43% Asia Pacific MEA 8% 10% Dec 08 Dec 09 People by contract People by cluster Permanent Workers 92% 80% Employees Temps & 19% Agency Management 8% 1% 63
Slide 65: Raw Materials
Raw Materials Pirelli Tyre mix Natural Rubber price trend Synth. Rubber 23% Natural Carbon Rubber black 13% 23% Chemicals 17% Steelcord 10% Textiles 14% 64
Slide 66: Recent Pirelli Tyre Highlights
Recent Pirelli Tyre Highlights Ben Spies wins the World Superbike Championship in Portugal (Portimao). Pirelli has been the official supplier since 2003 and Diablo tyres ensure the 26/10/2009 highest performance standards to all competing teams and riders throughout the season In the PZero fashion s
Slide 67: Pirelli Tyre: 20 factories in 11 Countries
Pirelli Tyre: 20 factories in 11 Countries (as of Dec.’09) Italy Bollate (MI) Car Settimo Torinese Car Germany U.K. Settimo Torinese Truck Breuberg Car/Moto Figline Valdarno Steelcord Merzig Steelcord Burton Car Carlisle Car Turkey Izmit Car/Truck Steelcord U.S.A Rome Car Romania Slatina Car/Steelco
Slide 68: Economic Results
Economic Results Total Pirelli RE December 2009 September 2009 December 2008 €/mln Services Platform/G&A Consolidated revenues 187.3 137.4 224.3 Other (*) 13.4 7.9 1.6 Total Revenues 200.7 145.3 225.9 Services Platform/G&A Result(**) 7.8 (0.5) (30.3) Vehicles & Funds Result from vehicles & funds (33
Slide 69: Economic Results
Economic Results Italy December 2009 September 2009 December 2008 €/mln Services Platform Consolidated revenues 99.7 73.9 113.6 Other (*) 11.7 6.1 17.0 Total Revenues 111.3 80.0 130.6 Service Platform Result (**) 32.0 19.5 11.3 Vehicles & Funds Result from vehicles & funds (10.8) (21.0) (30.4) Share
Slide 70: Economic Results
Economic Results Service Platform Italy December 2009 September 2009 December 2008 €/mln Fund & AM Fee Consolidated revenues 43.5 32.1 48.5 Other (*) 11.7 6.1 17.0 Total Revenues 55.2 38.2 65.5 Fund AM Fee Result (**) 26.1 16.4 17.4 Agency Consolidated revenues 27.4 17.9 24.0 Other (*) Total Revenue
Slide 71: Economic Results
Economic Results Germany December 2009 September 2009 December 2008 €/mln Services Platform Consolidated revenues 58.6 44.4 61.1 Other (*) 0.0 0.0 1.4 Total Revenues 58.6 44.4 62.5 Result (**) 1.3 2.2 (9.7) Vehicles & Funds Result from vehicles & funds (18.6) (14.9) (25.5) Shareholders’ loans intere
Slide 72: Economic Results
Economic Results Service Platform Germany December 2009 September 2009 December 2008 €/mln Fund & AM Fee Consolidated revenues 14.2 10.3 15.0 Other (*) Total Revenues 14.2 10.3 15.0 Fund AM Fee Result (**) 3.2 3.1 (5.0) Agency Consolidated revenues 3.9 3.4 4.4 Other (*) (0.1) Total Revenues 3.9 3.4
Slide 73: Economic Results
Economic Results Poland December 2009 September 2009 December 2008 €/mln Services Platform Consolidated revenues 5.3 4.0 6.8 Other (*) 0.0 0.0 0.0 Total Revenues 5.3 4.0 6.8 Result (**) (1.1) (1.1) (2.0) Vehicles & Funds Result from vehicles & funds (1.1) 0.3 20.1 Shareholders’ loans interests 2.2 1
Slide 74: Economic Results
Economic Results Services Platform Poland December 2009 September 2009 December 2008 €/mln Fund & AM Fee Consolidated revenues 1,8 1.6 2.8 Other (*) Total Revenues 1,8 1.6 2.8 Result (**) (1.1) (0.9) (1.9) Agency Consolidated revenues 1.2 0.7 1.3 Other (*) Total Revenues 1.2 0.7 1.3 Result (**) 0.1
Slide 75: Economic Results
Economic Results NPL December 2009 September 2009 December 2008 €/mln Services Platform Consolidated revenues 18.8 12.1 34.8 Other (*) 1.8 1.8 0.0 Total Revenues 20.6 14.0 34.8 Result (**) (4.0) (5.2) 3.7 Vehicles & Funds Result from vehicles & funds (3.5) 6.0 6.4 Shareholders’ loans interests (6.0)
Slide 76: Consolidated Balance Sheet
Consolidated Balance Sheet €/mln DECEMBER 2009 DECEMBER 2008 1 Fixed assets 654.0 589.1 of which participations 472.3 405.7 of which goodwill 148.1 137.8 2 Net working capital 114.9 133.1 3 Net invested capital 768.9 722.2 4 Net equity 663.1 366.4 of which group net equity 653.4 361.7 5 Funds 64.5 6
Slide 77: Consolidated Net Cash Flow
Consolidated Net Cash Flow €/mln Dec-09 Dec-08 Ebit + IEP before restructuring costs. (26.1) (59.7) writedowns/revalutations Depreciation 7.4 9.5 Change in investments 1) (101.2) 2.6 Change in other fixed assets (9.9) (16.8) Change in NWC. funds and other 41.7 (2.5) Free cash flow (88.1) (67.0) Impa
Slide 78: Real Estate Portfolio: Sales, Rents and Acquisitions by Country
Real Estate Portfolio: Sales, Rents and Acquitions by Country €/mln SALES RENTS ACQUISITIONS 1,031.4 4,968.7 37.8 782.8 34.4 0.4 207.7 864.9(*) 669.2 380.1 0.5 109.9 4.635.0 487.6 184.5 331.8 527.6 527.6 613.5 294.9 3.0 336.9 570.5 294.7 291.9 299.3 December December December December December Decem
Slide 79: AUM Real Estate Evolution “like for like” (Market Value)
AUM Real Estate Evolution “like for like” (Market Value) €/bln Capex Acquisitions & other Sales Devaluations + 0.4 - 1.0 - 0.4 15.0 14.0 2008 2009 The valuation of the Real Estate portfolio assessed by experts shows a 2.8% decrease on a “like for like” basis vs. the previous year The Italian, Ge
Slide 80: Italy: Real Estate Portfolio Key Data as of Dec. 2009
Italy: Real Estate Portfolio Key Data as of Dec. 2009 €/mln Mkt. Net Mkt. UCG NAV NIC Value BV Quota Debt Value Quota LTV Quota Quota PRE 28% PRE Quota 100% 1) PRE PRE2) PRE average PRE COMMERCIAL 4,317 1,087 1,043 44 627 58% 460 416 YIELDING & CORE TRADING & SOHO 1,007 351 298 53 204 58% 147 71
Slide 81: Germany & Poland: Real Estate Portfolio Key Data as of Dec.09
Germany & Poland: Real Estate Portfolio Key Data as of Dec.09 €/mln Mkt. Net Mkt. UCG NAV NIC Value BV Quota Debt Value Quota LTV Quota Quota PRE 28% PRE Quota 100% 1) PRE PRE2) PRE average PRE DGAG (Residential) 928 380 372 8 264 69% 116 87 BAUBECON 1,566 626 619 7 529 84% 97 42 (Residential)
Slide 82: Participated Real Estate Assets under Management 100%
Participated Real Estate Assets under Management 100% Quota PRE Passing Rent Passing Vacancy Book Value Market Value Net Debt Yield €/mln Commercial Core Italy 90,431.6 5.6% 10.2% 1,620,665.3 1,745,250 1,092,581.6 Fondo TECLA 44.8% 38,838.1 5.5% 9.4% 708,290.0 708,290 481,846.1 Fondo Cloe 18.1% 29,6
Slide 83: Pro-quota Real Estate Assets under Management
Pro-quota Real Estate Assets under Management Quota PRE Passing Rent Passing Vacancy Book Value Market Value Net Debt Pro-quota Yield Pro-quota Pro-quota Pro-quota €/mln Commercial Core Italy 29,699.2 5.4% 9.9% 545,947.3 571,272.5 380,221.5 Fondo TECLA 44.8% 17,399.4 5.5% 9.4% 317,313.9 317,313.9 22
Slide 84: Consolidated income statement 100% YoY trend
Consolidated income statement 100% YoY trend €/mln Total Real Total Real Total Total Total Total Estate Total Italy Estate Total Italy Germany Poland Germany Poland Dec.2009 Dec.2008 Sales 1,031.4 613.5 380.1 37.8 860.9 566.5 184.6 109.9 Rents 782.8 294.7 487.6 0.4 669.2 336.9 331.8 0.5 capital gain
Slide 85: Consolidated income statement 100% - December 2009
Consolidated income statement 100% - December 2009 €/mln Total Italy Germany Real Total Total Total Estate Italy Yeilding Trading & Development Germany Yeilding Yielding Development Poland Dec.2009 SOHO commercial residential Sales 1,031.4 613.5 288.5 249.0 75.9 380.1 196.9 105.7 77.5 37.8 Rents 782
Slide 86: Consolidated income statement 100% - December 2008
Consolidated income statement 100% - December 2008 €/mln Total Italy Germany Total Total Real Poland Italy Yeilding Trading & Non Germany Yeilding Yielding Estate SOHO Development strategic commercial residential Development Sales 860.9(*) 566.5 234.0 189.3 143.1 0.0 184.6 48.9 34.5 101.2 109.9 Rent