Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — H1 2007 Earnings Presentation
25 slides from Pirelli & C's earnings presentation, Sep 11, 2007
Slide 1: 1H 07 Group Results
1H 07 Group Results 11 September 2007 0
Slide 2: Statement
STATEMENT The Manager mandated to draft corporate accounting documents of Pirelli & C. S.p.A., Claudio De Conto, attests – as per art.154-bis, comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) – that all the accounting information contained in this presentation correspond to the documented r
Slide 3: Key Events After 30 June 2007
KEY EVENTS AFTER 30 JUNE 2007 • New geographical developments for Pirelli Tyre: • in Romania new high-technology industrial pole for the automotive sector • building new factory in China (Car/SUV) • screening new business opportunities in India and Russia • Public Offer on Tecla listed fund by Gamma
Slide 4: 1H 07 Pirelli Group Results
1H 07 PIRELLI GROUP RESULTS 1H 07 1H 06 €/mn IAS/IFRS IAS/IFRS Δ 07/06 Net Sales (as reported) 3,196.7 2,445.9 +30.7% Net Sales (2007 excluding DGAG effect) (*) 2,666.8 2,412.1 +10.6% EBITDA 319.7 324.2 -1.4% EBITDA margin (2007 excluding DGAG effect) 12.0% 13.3% EBIT 214.1 216.1 -0.9% EBIT margin (
Slide 5: 1H 2006 – 1H 2007: Group EBIT Variation
1H 2006 – 1H 2007: GROUP EBIT VARIATION €/mn 216.1 214.1 (4.6) 11.7 (6.3) (18.2) 15.4 For Pirelli RE the significant value is the EBIT including Result from Equity Participations: € 33.1 mn Group Pirelli Pirelli Pirelli RE Pirelli Others Group EBIT at Tyre EBIT Broadband EBIT Ambiente EBIT at 30.06.
Slide 6: FY 2006 – 1H 2007: Group NFP Variation
FY 2006 – 1H 2007: GROUP NFP VARIATION €/mn 839.0 74.4 2,969.2 (91.0) 167.2 1,979.6 NFP NET CASH ADDITIONAL CASH-IN DIVIDENDS NFP AT FLOW NFP FROM TO AT 31.12.2006 ORDINARY (DGAG) PRYSMIAN MINORITIES 30.06.2007 ACTIVITY WARRANT 5
Slide 7: 1H 2007 Pirelli Tyre Results
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Slide 8: 1H 07 Pirelli Tyre Results
1H 07 PIRELLI TYRE RESULTS €/mn 1H 07 1H 06 IAS/IFRS IAS/IFRS Variation ΔPrice/mix: +5.5% Net ΔVolumes: +2.9% 2,151.4 2,018.4 +6.6% Sales ΔActual Variation: + 8.4% ΔExch. Rates: -1.8% EBITDA 301.7 292.6 +3.1% ΔTotal: +6.6% EBITDA margin 14.0% 14.5% ΔCommercial Variations: € 67.8 mn EBIT 206.3 194.6
Slide 9: 1H Pirelli Tyre Results by Business Segment
1H 07 PIRELLI TYRE RESULTS BY BUSINESS SEGMENT €/mn 1H 07 1H 06 Variation IAS/IFRS IAS/IFRS CONSUMER Sales 1,492.1 1,402.7 +6.4% EBIT 149.1 137.4 +8.5% EBIT margin 10.0% 9.8% INDUSTRIAL Sales 659.3 615.7 +7.1% EBIT 57.2 57.2 EBIT margin 8.7% 9.3% • Consumer sales organic growth 8.1% driven by volume
Slide 10: 1H 2007 Pirelli Broadband Solutions Results
1H 2007 Pirelli Broadband Solutions Results
Slide 11: 1H 07 Pirelli Broadband Solutions Results
1H 07 PIRELLI BROADBAND SOLUTIONS RESULTS €/mn 1H 07 1H 06 IAS/IFRS Variation IAS/IFRS Net Sales 55.8 72.7 -23.2% EBITDA (5.9) (0.1) n.m. EBITDA margin n.m. n.m. n.m. EBIT (6.9) (0.6) n.m. EBIT margin n.m. n.m. n.m. Net Income (7.9) (3.3) n.m. • Sales contraction mainly ralated to a different yearly
Slide 12: 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 sales and new tenders • Launch of Transponder MSA300 expected A
Slide 13: 1H 2007 Pirelli Ambiente Results
1H 2007 Pirelli Ambiente Results
Slide 14: Pirelli Ambiente: Environmental Group's Solutions
PIRELLI AMBIENTE: ENVIRONMENTAL GROUP’S SOLUTIONS PIRELLI AMBIENTE PIRELLI AMBIENTE SOLAR UTILITY SpA ECO TECHNOLOGY RENEWABLE ENERGY (50% STAKE) Energy recovery from Energy recovery from Gecam TM, Filters municipal solid waste municipal solid waste (SRF-P) (SRF-P) Reducing the Reducing CO 2 emissio
Slide 15: 1H 07 Pirelli Ambiente Results
1H 07 PIRELLI AMBIENTE RESULTS €/mn 1H 07 1H 06 Variation IAS/IFRS IAS/IFRS Net 35.0 39.3 -10.9% Sales EBIT (3.1) 1.5 (*) n.m. Net Income (3.2) 1.1 n.m. (*) Including €2.9 mn of agreement with RE Energy for CDR • Sales consolidation of Gecam and start-up of anti-particulate filters for industrial ve
Slide 16: 1H 2007 Pirelli Real Estate Results
1H 2007 Pirelli Real Estate Results
Slide 17: Pirelli RE Recent Achievements
PIRELLI RE RECENT ACHIEVEMENTS • Assets under Management (Real Estate and NPLs) €15.5 bn, with 73% of Real Estate AUM in Italy and 27% outside of Italy • EBIT including Income from Equity Participations at €125.4 mn, +36% compared with first half 2006 • Acquisition of DGAG and Baubecon • achieved in
Slide 18: 1H 07 Pirelli RE Consolidated P&L
1H 07 PIRELLI RE CONSOLIDATED P&L 1H 07 1H 06 Δ 07/06 IAS/IFRS IAS/IFRS % €/mn Pro-quota Aggregate Revenues 811.9 673.5 +21% Consolidated Revenues (*) 421.8 308.4 EBIT Incl. Income from Equity Participations 125.4 92.3 +36% Profit before taxes 101.9 91.7 Net Attributable Income 80.1 70.0 +14% (*) No
Slide 19: 1H 07 Pirelli RE Consolidated Balance Sheet
1H 07 PIRELLI RE CONSOLIDATED BALANCE SHEET 1 H 07 1H 07 FY 06 Pro-Forma after €/mn IAS/IFRS DGAG decons. IAS/IFRS Fixed Assets 745.2 757 581.7 (of which Investments in Participated Company and Funds) 460.9 473 426.1 Net Working Capital 1.147.0 246 283.3 Net Invested Capital 1.892.2 1.003 865.0 Shar
Slide 20: Pirelli Group Outlook 2007
PIRELLI GROUP OUTLOOK 2007 • CONFIRMED IMPROVEMENT IN 2007 RESULTS • FINANCIAL STRUCTURE WILL BENEFIT FROM THE CASH IN COMING FROM THE CLOSING OF OLIMPIA DEAL (€3.3 bn cash expected for Pirelli) 19
Slide 21: 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 22: Back-up Slides
BACK-UP SLIDES 21
Slide 23: Pirelli Worldwide Presence
PIRELLI WORLDWIDE PRESENCE 24 Plants 12 Countries Enhanced production and presence 31,270 Employees (1H 2007) 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% 2
Slide 24: 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% 52.3% 51% 80% Discontinued Operations Pirelli Pirelli Pirelli Pirelli Broadband Olimpia Tyre Real Esta
Slide 25: 1H 2007 – Pirelli Group Results
1H 2007 – PIRELLI GROUP RESULTS PIRELLI PIRELLI PIRELLI PIRELLI OTHERS GROUP TYRE BROADB.SOLUT. REAL ESTATE AMBIENTE PIRELLI & C. CONS. €/mn 30.06.07 30.06.06 30.06.07 30.06.06 30.06.07 30.06.06 30.06.07 30.06.06 30.06.07 30.06.06 30.06.07 30.06.06 Net Sales 2,151.4 2,018.4 55.8 72.7 951.7 308.4 35.