Slide 1: FY 2007 Group Results
Reco FY 2007 Group Results
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: 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 4: Pirelli Group Structure
PIRELLI GROUP STRUCTURE Main Shareholders* Camfin 20.3% Mediobanca 4.6% €/ Mln Edizione Holding 4.6% Group Sales: 5,209 Fondiaria SAI 4.4% Pirelli & C. SpA Group Net Invested Capital: 4,113 Allianz 4.4% Assicurazioni Generali 4.4% Pirelli Tech Sales: 189 Venture NIC: 2% (sul totale) Pirelli RE Pirel
Slide 5: Group Mission
GROUP MISSION Skilled management with an international culture Technology, Focus on core innovation and IPR business “Creating value for shareholders & stakeholders” Effective Corporate Governance 4
Slide 6: Pirelli Worldwide: A Global Company
PIRELLI WORLDWIDE: A GLOBAL COMPANY 24 Plants 12 Countries 30,813 Employees 160 commercial presence Approx. 100 Scientists Enhanced production and presence in Brazil, Romania, China = Manufacturing Plant = Local Subsidiary Sales by Area* * excluding DGAG sales Employees distribution Asia/Africa/othe
Slide 7: Key Events
KEY EVENTS •17thJanuary 2007 - Pirelli & C.: shareholders' agreement renewed untill April 2010 •12thFebruary 2007 - Pirelli Tyre: syndication of revolving credit line for €675 mn concluded successfully •19thJuly - Pirelli Tyre opens in Romania new high-technology industrial pole for the automotive s
Slide 8: Cash In & Cash Out
CASH IN & CASH OUT Pirelli Olimpia €3.3 Bn • €3.3 Bn cash destination: - €826 Mln for “extraordinary” dividend distribution (€0.154 per share); - €434.4 Mln to “buyback” Tyre Minorities; - €1.3 Bn to repay corporate debt. - € 93.2 Mln (€ 0.0160 per ordinary share; € 0.0728 per saving share*) Note: S
Slide 9: Buyback of Tyre Minorities
“BUYBACK” OF TYRE MINORITIES Before After Pirelli & C. Pirelli & C. 61.1% Capitalia Merchant S.p.a. (19%) 100% B. Intesa S.p.a. (19%) Pirelli Tyre One Equity Partners II L.P. Debt (JPMorgan) (19%) Speed S.p.a. 61.1% Speed S.p.a. LB UK RE Holding Ltd (Lehman €401.1 Mln Brothers) (19%) 38.9% Mediobanc
Slide 10: CSR: Investigation Area
CSR : INVESTIGATION AREA Environment Human Resources Suppliers “multi-stakeholder” Institutions Clients Approach Shareholders Social Community 9
Slide 11: CSR Achievements
CSR ACHIEVEMENTS Dow Jones Indexes Dow Jones Sustainability World Dow Jones Sustainability STOXX 2008 world Leader in the Autoparts and Tyres Sector Financial Times Indexes FTSE4Good Global FTSE4Good European STOXX 2008 Sector Leader and Gold Class Company in the “Sustainability Sustainability Yearb
Slide 12: FY 2007 Pirelli Group Financials
FY 2007 Pirelli Group Financials
Slide 13: FY 07 Pirelli Group Results
FY 07 PIRELLI GROUP RESULTS €/mn FY 07 FY 06 Variation IAS/IFRS IAS/IFRS 07/06 Net Sales (as reported) 6,504.5 4,841.2 +34.4% Net Sales (organic) (*) 5,208.9 4.800,2 +8.5% EBIT 366.9 401.4 (8.6)% EBIT margin 7.0% 8.3% n.m. EBIT Incl. Income from Eq. Part.(**) 562.2 1,192.1 n.m. Total Net Income (los
Slide 14: Sales & Consolidated Net Invested Capital Breakdown
SALES & CONSOLIDATED NET INVESTED CAPITAL BREAKDOWN FY 2007 Consolidated FY 2007 Sales Breakdown Net Invested Capital (NIC) Breakdown by Business Segment by Business Segment Corporate Tech ventures € 873Mln PRE € 189Mln 4% 21% € 853Mln 16% Tech ventures € 77Mln 2% Tyre** € 2.086Mln PRE** 51% Tyre €
Slide 15: FY 2006 – FY 2007: Group EBIT Variation
FY 2006 – FY 2007: GROUP EBIT INC. INCOME FROM EQ. PART. VARIATION €/mn 1192.1 (416.4) 19.7 22.1 560.5 562.2 (215.2) (20.8) (19.3) GROUP EBIT capital gain capital gain GROUP EBIT GROUP EBIT inc.Income 2006 inc.Income Pirelli Pirelli Tech inc.Income 2006 sale PRE Other From eq.part. Capitalia From eq
Slide 16: FY 2006 – FY 2007: Group Net Financial Position Variation
FY 2006 – FY 2007: GROUP NET FINANCIAL POSITION VARIATION 74.4 €/mn 107.0 271.7 (43.9) 1,979.6 110.3 31.5 P.TYRE 42.9 P.REAL ESTATE (298.5) 826.3 (302.1) (3,329.0) NFP Op.Cash Financial Dividends Sale of PRE inv. in Purchase Capital NFP at flow & fiscal P.Tyre and OLIMPIA funds & of P&C RE Other Rei
Slide 17: FY 2007 Pirelli Tyre Results
Reco FY 2007 Pirelli Tyre Results
Slide 18: FY 2007 Pirelli Tyre Results
FY 2007 PIRELLI TYRE RESULTS €/mn FY 2007 FY 2006 Variation IAS/IFRS IAS/IFRS 07/06 ΔPrice/mix: +4.7% ΔVolumes: +1.8% Net Sales 4,161.7 3,949.5 +5.4% ΔActual Variation: +6.5% ΔExch. Rates: (1.1%) EBITDA ΔTotal: +5.4% 548.6 533.7 +2.8% EBITDA margin 13.2% 13.5% EBIT 358.1 342.3 +4.6% ΔCommercial Vari
Slide 19: FY 2007 Pirelli Tyre Results by Business Segment
FY 2007 PIRELLI TYRE RESULTS BY BUSINESS SEGMENT €/mn FY 07 FY 06 Variation IAS/IFRS IAS/IFRS 07/06 CONSUMER Sales 2,861.4 2,735.1 +4.6% EBIT 252.5 240.7 +4.9% ROS 8.8% 8.8% INDUSTRIAL Sales 1,300.3 1,214.4 +7.1% EBIT 105.6 101.7 +3.8% ROS 8.1% 8.4% • Consumer sales up 4.6% driven by higher OE and M
Slide 20: FY 2007 Pirelli Tyre Sales Mix
FY 2007 PIRELLI TYRE SALES MIX North America Europe 48% 8% (Italy 10%) Africa & Asia/pacific 16% Latin America 28% Truck tyres 28% Car Tyres 61% 2 wheels tyres 8% 3% 19 Steelcord/Others
Slide 21: 2008 Pirelli Tyre Highlights
2008 PIRELLI TYRE HIGHLIGHTS New car tyre plant in China announced in Nov. 2007 with an investment of 100 ml $. Agreement signed in Feb. 2008 with the University of Turin and the Piemonte region for the development of research and innovation programmes at the new industrial pole at Settimo Torinese,
Slide 22: 2008 Pirelli Tyre and Market Outlook
2008 PIRELLI TYRE AND MARKET OUTLOOK Consumer, OE + 1% Repl. + 1% Consumer, OE - 5% Industrial, OE + 5% Repl. +1% Repl. - 1% Consumer, OE +10% Repl. + 5% Consumer, OE +10% Industrial, OE +10% Repl. + 5% Repl. + 5% Industrial, OE + 10% Repl. + 5% Notwithstanding the difficult macroeconomic and tyre b
Slide 23: FY 2007 Pirelli Real Estate Results
FY 2007 Pirelli Real Estate Results
Slide 24: Pirelli RE Key Achievements
PIRELLI RE KEY ACHIEVEMENTS • EBIT including Income from Equity Participations €236.5 Mln (+10%); net of temporary impact of DGAG is in line with last year. • Assets under Management of €15 Bn (€14.5 Bn at end 2006) – Real estate assets: €12.6 Bn, 71% in Italy and 29% in Germany and Poland (14% at e
Slide 25: FY2007 Pirelli RE Consolidated P&L
FY2007 PIRELLI RE CONSOLIDATED P&L €/mn Actual Actual Variation December December 07/06 2007 2006 Pro-quota Aggregate Revenues (*) 1,543.1 1,560.0 Consolidated Revenues (*) 853.1 702.0 EBIT Incl. Income from Equity Participations 236.5 214.4 10% (**) Profit before taxes 195.0 211.3 Net Attributable
Slide 26: FY 2007 Pirelli RE Consolidated Balance Sheet
FY 2007 PIRELLI RE CONSOLIDATED BALANCE SHEET €/mn Actual Actual December December 2007 2006 Fixed Assets 886.1 581.7 Of which investments in participated companies 601.3 427.2 Of which goodwill 218.4 93.4 Net Working Capital 190.5 283.3 Net Invested Capital 1,076.6 865.0 Shareholders’ Equity 720.1
Slide 27: 2008 Group Outlook
Reco 2008 Group Outlook
Slide 28: Pirelli Group Outlook 2008
PIRELLI GROUP OUTLOOK 2008 WE FORECAST 2008 COMBINED OPERATING RESULTS OF OUR BUSINESS IN LINE WITH 2007, WITH A SOUND FINANCIAL STRUCTURE. 27
Slide 29: FY 2007 Pirelli Tech Ventures
Back up slides FY 2007 Pirelli Tech Ventures •Ambiente •Broadband solutions
Slide 30: Broadband Solutions Results
FY 07 BROADBAND SOLUTIONS RESULTS €/mn FY 07 FY 06 IAS/IFRS IAS/IFRS SALES 117.1 129.4 TOTAL EBITDA (11.1) 1.1 EBIT (13.5) (0.3) NET (17.4) (3.3) INCOME 29
Slide 31: 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 32: Technological Ventures
TECHNOLOGICAL VENTURES PIRELLI PIRELLI & C. ECO TECHNOLOGY SpA AMBIENTE SpA - GECAM TM - ENERGY RECOVERY FROM SOLID WASTE - ANTIPARTICULATE FILTERS - PHOTO VOLTAIC ENERGY - ENVIRONMENTAL RECLAMATION AND DUE DILIGENCE - Sales consolidation of Gecam ™. - Sales consolidation of high quality fuel throug
Slide 33: Pirelli FY07 Group Results
PIRELLI FY07 GROUP RESULTS PIRELLI PIRELLI PIRELLI OTHER OTHER PIRELLI & C. CONS. TYRE REAL ESTATE BROADB. SOLUTIONS BUSINESS GROUP Euro/Mln 31.12.07 31.12.06 31.12.07 31.12.06 31.12.07 31.12.06 31.12.07 31.12.06 31.12.07 31.12.06 31.12.07 31.12.06 Sales 4,161.7 3,949.5 2,148.7 (I) 702.0 117.1 129.4