Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — H1 2010 Earnings Presentation
67 slides from Pirelli & C's earnings presentation, 2010
Slide 1: Pirelli 1H 2010 Results
Reco PIRELLI 1H 2010 RESULTS
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA’s current expectations and projections about future events and does not constitute an offer or solicitation for the sale. purchase or acquisition of securities of any of the companies
Slide 3: Agenda
Agenda Key Messages Pirelli Financial Review Pirelli Tyre & Parts Pirelli Real Estate Appendix 2
Slide 4: 1H 2010 Key Messages
Pirelli 1H 2010 Key Messages Pirelli Real Estate Separation Plan fully on track. Shares assignment within October 2010; Marked Operating Management improvement in the Real Estate and above all in the Tyre business; More expeditious p Tyre y Investment Plan to optimize p market opportunities an
Slide 5: Pirelli back to F1: fuelling intangible value creation
Pirelli back to F1: fuelling intangible value creation BACK TO WHY: After 20 years, Business Model changed WHY: Top TV event of the year year. In 2011, 2011 an estimated global audience of 2 bln people, 50% from emerging markets WHY: F1 and PIRELLI values match perfectly: technological innovation, p
Slide 6: Agenda
Agenda Key Messages Pirelli Financial Review Pirelli Tyre & Parts Pirelli Real Estate Appendix 5
Slide 7: Key Financial Results
Pirelli Key Financial Results €/mln 1H’10 1H’09 YoY 2Q’10 2Q’09 YoY 2Q RESULTS KEY DRIVERS restated* restated* Revenues 2,426.5 2,026.2 +19.8% 1,264.0 1,037.0 +21.9% Core business “value Organic growth (**) +16.8% +17.0% performance” is driving EBITDA before Restruct. Costs 307.1 228.7 +34.3% 1
Slide 8: EBIT trend
Pirelli EBIT trend €/mln Organic O i EBIT: EBIT 34.9 34 9 41.6 1.1 0.9 105.6 (0 0) (0.0) (7.8) 69.8 2Q 2010 Eco Broadband Other Restruct. 2Q’09 Tyre Tech access activities Costs 2Q’10 Organic EBIT: 72.8 2.0 193.4 78.7 1.8 ((1.2)) 118 8 118.8 (6.7) 1H 2010 Eco Broadband Other Restruct. 1H’09 Tyre
Slide 9: Net Income from continuing operations 1H'10 vs 1H'09
Pirelli Net Income from continuing operations 1H’10 vs 1H’09 3.0 0.4 74.6 80.8 (27.5) 30.3 EBIT Results financial taxes 1H’09 1H’10 from income/charges particip. 8
Slide 10: 1H'10 Net Financial Position
Pirelli 1H’10 Net Financial Position €/mln EBIT before restr. costs 90.4 635.1 Net of Pirelli RE Dep/Am: 51.8 Capex: p (50.1) NWC & others: (156.7) 85.1 696.9 14.0 678.4 34.0 6.5 10.4 (24.9) 61.6 47.0 ((10.0)) 64.6 (120.2) 528.8 EBIT before restr. costs 110.9 Dep/Am: 54 0 54.0 Capex: (85.4) NWC
Slide 11: Debt Structure as of June 30, 2010
Pirelli Debt Structure as of June 30, 2010* Net Financial Position Gross Debt Maturity €/mln 1,299 664 377 574 Committed Line 425 Drawdown 425 635 72 149 Other Borrowings 874 276 Gross Fin. Net Fin. Debt Assets** position Gross Debt maturity as of Jun. 30, 2010 21.2% 5.5% 44.2% 29.1% 1H’10 2010 2011
Slide 12: Pirelli & C 2010 FY targets update
Pirelli &C 2010 FY targets update €/bln 1H 2010 2010 targets 2010 2010 (restated excl. PRE 1st Targets upgrade 2nd Targets upgrade exc. PRE) (March 10, 2010) (May 5, 2010) (July 29, 2010) Group Revenues 2.4 4.3-4.5 4.6-4.7 4.8-4.9 EBIT % 8.0% 6.5-7% ≥6.5% ~7% post restructuring Capex 0 14 0.14 >0 3
Slide 13: Agenda
Agenda Key Messages Pirelli Financial Review Pirelli Tyre & Parts Pirelli Real Estate Appendix 12
Slide 14: Tyre performance
Pirelli Tyre performance 1Q’10 YoY% 2Q’10 YoY% 1H’10 YoY% €/mln Revenues 1,110.0 +19.8% 1,215.3 +22.9% 2,325.3 +21.4% EBITDA (before 146.4 +35.8% 177.5 +33.5% 323.9 +34.5% High quality operating restruct costs) restruct. performance with a sound margin 13.2% +1.6 p.p. 14.6% +1.2 p.p. 13.9% +1.3 p.p
Slide 15: Tyre: a solid positioning to capture growth
Pirelli Tyre: a solid positioning to capture growth Sales by region 2Q’10 Actions and Results % on sales l 100% 100% Yoy growth Europe Benefiting from Premium and Prestige OEMs sales increase Europe 42% 39% Mature M t Green Performance driving replacement sales Markets North America +17% High
Slide 16: Tyre 1H'10 operating performance
Pirelli Tyre 1H’10 operating performance €/mln 25.2 86.6 2.2 127.1 5.3 85.5 (74.9) (2.8) 2Q 2010 Raw materials: (62.1) Labour / energy / other: (12.8) EBIT 2Q’09 Price Volume Cost of Efficiencies Depreciation/ Exchange EBIT 2Q’10 mix inputs other costs rate (before (before restr. costs) restr.cost
Slide 17: Tyre NFP evolution
Pirelli Tyre NFP evolution €/mln EBIT (before restr. costs): 98.1 EBIT (before restr. costs): 127.1 Investments: (47.6) Investments: (84.5) Depreciation: 48.3 Depreciation: 50.4 ∆ NWC & others: (132.2) ∆ NWC & others: 37.0 156.0 1,212.9 ((5.6)) 22.2 1,122.5 45.6 (6.0) 8.3 61.7 33.4 1,027.3 (
Slide 18: Consumer Business: key market trends
Consumer Business: key market trends Car tyre shipments. % (yoy) 2Q‘09 3Q‘09 4Q‘09 1Q’10 2Q’10 +37% +12% +11% Europe* OE -12% -25% +12% +10% +11% +1% Replacement -7% +74% 74% +73% h America +2% OE -22% North -48% 48% +8% +8% +8% 8% +3% Replacement -10% +44% +25% +12% Mercosur OE -10% -8% +21% +26% +
Slide 19: Consumer Business: Pirelli performance
Consumer Business: Pirelli performance 1Q’10 YoY% 2Q’10 YoY% 1H’10 YoY% €/mln Revenues 780.9 +16.5% 835.8 +19.1% 1,616.7 +17.8% Significant double-digit top line growth driven by EBITDA (before 106.0 +37.0% 122.4 +35.4% 228.4 +36.1% volume growth limited by restruct. costs) factory shut-down in De
Slide 20: Industrial Business: key market trends
Industrial Business: key market trends Car tyre shipments, shipments 2Q‘09 3Q‘09 4Q‘09 1Q’10 2Q’10 +67% 67% +1% ope* OE Euro 50% -50% -72% -66% +12% +38% +19% Replacement -22% -14% +65% +61% +3% OE sur -33% 33% -32% 32% Mercos +23% +26% +19% Replacement -16% -10% * Turkey and Russia included Sources
Slide 21: Industrial Business: Pirelli performance
Industrial Business: Pirelli performance 1Q’10 YoY% 2Q’10 YoY% 1H’10 YoY% €/mln Revenues 329.1 +28.4% 379.5 +32.0% 708.6 +30.3% Sales growth in the more profitable markets EBITDA (before 40.4 +32.9% 55.1 +29.3% 95.5 +30.8% restruct. costs) Solid price increase across the margin 12.3% +0.4 p.p. 1
Slide 22: Accelerating investments in 2010
Accelerating investments in 2010 (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 C Tyres T Over 350 €/mln investments in 2010 to spee
Slide 23: Tyre 2010 targets update
Pirelli Tyre 2010 targets update €/mln 2010 2010 2010 FY’09 Targets 1st Targets upgrade 2nd Targets upgrade (March 10, 2010) (May 5, 2010) (July 29, 2010) Revenues 3,993 +6% / + 8%* >10%* Up to 15%* EBIT % 7.7% ~flat yoy post restruct. EBIT (Implicit in the 320÷330 360 post restruct. 308.5 guidance
Slide 24: Eco Technology: 1H'10 Key Financial Results
Pirelli Eco Technology: 1H’10 Key Financial Results €/mln 1H ’10 1H’09 YoY Revenues 35 1 35.1 28.3 +24.0% of which Filters 14.9 8.2 +81.7% Gecam 20.2 20.1 +0.5% Ebitda (2.3) (4.4) Ebit (3.5) (5.5) Net income (5.0) (6.6) NFP 37.2 32.8 Filters sales growth driven by Italy China operations and star
Slide 25: Agenda
Agenda Key Messages Pirelli Financial Review Pirelli Tyre & Parts Pirelli Real Estate Appendix 24
Slide 26: Results and Targets
Results and Targets €/mln H1-2010 H1-2009 FY 2010 target FY 2009 1) Real Estate Sales (€/mln) 562.1 351.9 1,300-1,500 1,031 2) Service Platform incl. G&A +11.2 (3.2) +20/+30 +7.8 Fixed Cost Saving +25.4 +29 +25/+30 +68 (versus previous year) NFP (excluding shareholders's loan) (452.3) (828.5) stable
Slide 27: Consolidated Profit and Loss
Consolidated Profit and Loss ACTUAL JUNE ACTUAL MARCH ACTUAL JUNE €/mln 2010 2010 2009 Revenues 135.1 51.7 115.8 of which service activities 79.9 41.6 94.7 of which other revenues 55.2 10.1 21.1 EBIT services 10.6 5.0 (5.2) Income from equity participations services 0.6 0.0 2.0 Service platform/G&A
Slide 28: Segment Report
Segment Report €/mln Italy Germany Poland NPL Holding Total 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 Service platform 15.2 6.7 2.8 2.7 (0.9) (0.1) (0.6) (2.4) (5.2) (10.0) 11.2 (3.2) V hi l & funds Vehicles f d 28 2.8 (10 3) (10.3) 43 4.3 (0 9) (0.9) 10 1.0 17 1.7 (1 5) (1.5) 34 3
Slide 29: Sales trend
Sales trend €/mln 1 300/1 500 1,300/1,500 Italy Germany Poland Development ~250 Gross margin of sales is approx. +5% as of June 2010 Trading & Soho ~200 ~1,050 Sales price vs market value is approx. -0.5% as of June 2010 Other ~600 771.3 Anastasia 209 2 209.2 fund 351.9 460.9 ~300 273.3 562.1 76.6 5
Slide 30: Update on Cost Saving 2010 vs 2009
Update on Cost Saving 2010 vs 2009 €/mln Consulting C lti costs +3.8 IT & Communication +1.2 12 +25.4 +11.7 Depreciation s +0.9 Others Headquarter fixed s +0.8 costs +13.7 1) +25 25 / +30 30 Marketing M k ti +0.7 Fixed Costs Savings Travel 6/2010 Labour +0 8 +0.8 costs Labour costs 2) Other +3.5 Tar
Slide 31: Impact of Real Estate Writedowns and Revaluations on P&L
Impact of Real Estate Writedowns and Revaluations on P&L €/mln June June June 2009 2010 2009 Revaluations Writedowns W it d (18 3) (18.3) (50.3) (50 3) Revaluations 45.5 Total impact (18.3) (4.8) 45.5 June 2010 (18 3) (18.3) (4 8) (4.8) (18.3) Writedowns (13.0) Italy (50.3) (5.3) Germany Writedowns
Slide 32: Real Estate AUM Evolution - like for like
Real Estate AUM Evolution - “like for like” (Market Value) + 0.7 €/bln -0.6 €/bln -0.1 €/bln -0.3 €/bln 14 4 € bln 14.4 14.1 € bln Capex, Dec 2009 acquisitions & Sales Writedowns Highstreet 1) Jun 2010 other The valuation of the Real Estate portfolio estimated by indipendent appraisers shows a -0.
Slide 33: Fund Management: New business for third parties
Fund Management New business for third parties p €/bln Expected new assets Effective from g under Management Progetto Mida 0.6 Jan 2010 Fondo Anastasia 0.3 2010 Fondo Fedora 0.1 / 0.3 2011 / 2012 Enasarco 0.6 / 1 2011 / 2012 Total 1.6 / 2.2 +1.6 / +2.2 2.0 / 2.6 +1.4 1.8 0.4 2009 2011 2012 32
Slide 34: Key Real Estate Portfolio Data as of June 2010
Key Real Estate Portfolio Data as of June 2010 €/mln Mkt. Value Mkt. Value Book Value UCG Net Debt NAV NIC PRE pro-quota 100% 30.06.10 LTV IAS 40 % 1) PRE pro-quota PRE pro-quota PRE pro-quota PRE pro-quota PRE pro-quota 30.06.10 (27% average) ITALY 6,254 1,775 1,653 122 999 56% 776 576 48% GERMANY
Slide 35: NFP excl. Shareholders' Loans
NFP excl. Shareholders’ Loans €/mln 458.6 21.1 452.3 445.8 11.0 7.5 10.3 (43.4) Equity Interests Capex NFP Dec NFP Mar Sales / contrib. to and other NFP Jun Layoff and 2009 2010 distributions funds and financial 2010 other SPV expenses 34
Slide 36: Group Corporate Lines
Group Corporate Lines Current Situation Situation post separation Bank Commitment Expiry Bank Commitment Expiry CLUB DEAL (*) 320,000 Jul-12 CLUB DEAL (*) 320,000 Jul-12 WEST LB 50,000 May-11 WEST LB 50,000 May-11 UNICREDIT 25,000 Feb-11 UNICREDIT 25,000 Dec-10 POP MILANO 10 000 10,000 Jul-11 Jul 11
Slide 37: Financial situation of participated vehicles/funds 1/2
Financial situation of partecipated vehicles/funds 1/2 €/mln 1) 2) AUM Net debt as of June 30, 2010 Refinancing 14,6 10.5 2.8 0.4 2.4 0.1 0.4 0.5 1.4 1,4 AuM Net Debt Net Debt Real NPL 2010 2011 2012 Beyond 100% 100% proquota Estate 1) Participated Real Estate+ NPL 2) Due to maturity 36
Slide 38: Financial situation of participated vehicles/funds 2/2
Financial situation of partecipated vehicles/funds 2/2 Bank Loan characteristics 1) LTV 67%: Italy 56%, Germany 80% and Poland 38% Average Duration close to 3.2 years (PRE pro-quota 3.0): Italy 2.7, Ero B o M?? Germany 3.6 and Poland 1.8 years Average spread: 222 bps (PRE pro-quota 177 bps)
Slide 39: Consolidated Balance Sheet
Consolidated Balance Sheet €/mln ACTUAL JUNE ACTUAL ACTUAL JUNE 2010 December 2009 2009 Fi d assets Fixed t 623 5 623.5 654 0 654.0 583 0 583.0 of which participations 443.9 472.3 406.7 of which goodwill 148.1 148.1 137.0 Net working capital 131.8 114.9 122.4 Net invested capital 755.4 768.9 705.3 N
Slide 40: Appendix
Appendix 39
Slide 41: Group – 1H'10 Results
Pirelli Group – 1H’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Pirelli Tyre Eco Technology Broadband Access Others Pirelli & C. Cons. 1H’10 1H’09 1H’10 1H’09 1H’10 1H’09 1H’10 1H’09 1H’09 (restated) 1H’10 (restated) Sales 2,325.3 1,915.9 35.1 28.3 57.8 72.8 8.
Slide 42: Group – 1H'10 Results
Pirelli Group – 1H’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Ambiente PZero Other Total Others 1H’09 1H’09 1H’10 1H’09 1H’10 1H’09 1H’10 (restated) 1H’10 (restated) Sales 3.6 2.0 3.5 2.2 1.2 5.0 8.3 9.2 ∆% 80.0% 59.1% EBITDA before Restruct Costs (1.0) (1.1)
Slide 43: Group – 2Q'10 Results
Pirelli Group – 2Q’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Pirelli Tyre Eco Technology Broadband Access Others Pirelli & C. Cons. 2Q’10 2Q’09 2Q’10 2Q’09 2Q’10 2Q’09 2Q’10 2Q’09 2Q’10 2Q’09 (restated) (restated) Sales 1,215.3 989.0 15.5 14.0 30.6 28.8 2.6
Slide 44: Group – 2Q'10 Results
Pirelli Group – 2Q’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Ambiente PZero Other Total Others 2Q’09 2Q’09 2Q’10 2Q’09 2Q’10 2Q’09 2Q’10 (restated) 2Q’10 (restated) Sales 1.7 0.7 0.4 0.4 0.5 4.1 2.6 5.2 ∆% 142.9% EBITDA before Restruct Costs 0.5 (0.4) (0.5)
Slide 45: Group – 1Q'10 Results
Pirelli Group – 1Q’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Pirelli Tyre Eco Technology Broadband Access Others Pirelli & C. Cons. 1Q’10 1Q’09 1Q’10 1Q’09 1Q’10 1Q’09 1Q’10 1Q’09 (restated) 1Q’10 1Q’09 (restated) Sales 1,110.0 926.9 19.6 14.3 27.2 44.0 5.7
Slide 46: Group – 1Q'10 Results
Pirelli Group – 1Q’10 Results* Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Ambiente PZero Other Total Others 1Q’09 1Q’09 1Q’10 1Q’09 1Q’10 1Q’09 1Q’10 (restated) 1Q’10 (restated) Sales 1.9 1.3 3.1 1.8 0.7 0.9 5.7 4.0 ∆% 46.2% 72.2% EBITDA before Restruct Costs (1.4) (0.7)
Slide 47: Group – FY'09 Results
Pirelli Group – FY’09 Results* Profit & Loss and Net Financial Position by Business Unit Pirelli €/mln Pirelli Tyre Eco Technology Broadband Access Others Pirelli & C. Cons. FY ’09 FY ’09 FY ’09 FY’09 FY’09 (restated) (restated) Sales 3,992.9 56.6 132.1 15.9 4,197.5 EBITDA before Restruct Costs 538.
Slide 48: Group – FY'09 Results
Pirelli Group – FY’09 Results Profit & Loss and Net Financial Position by Business Unit €/mln Pirelli Ambiente PZero Other Total Others FY ’09 FY ’09 FY’09 FY’09 (restated) (restated) Sales 3.6 5.0 7.3 15.9 EBITDA before Restruct Costs (2.3) (3.7) (15.1) (21.1) EBIT before Restruct Costs (2.4) (3.8)
Slide 49: Balance Sheet
Pirelli Balance Sheet €/mln 1H’10 FY’09 % Net Invested Capital Fi d Assets Fixed A 3 022 3 3,022.3 2 938 9 2,938.9 30.06.2010 31.12.2009 Net Working Capital 296.5 106.9 P.Tyre 72.9% 65.6% Net Invested Capital continuing operations 3,318.8 3,045.8 P Eco Tech. P.Eco Tech 1.1% 1.4% Net Invested capital
Slide 50: Group Cash Flow
Pirelli Group Cash Flow €/mln 1Q’10 2Q’10 1H’10 2Q’09 1H’09 EBIT before restructuring costs 90 4 90.4 110 9 110.9 201 3 201.3 76 0 76,0 128 5 128.5 Depreciation 51.8 54.0 105.8 50,5 100.2 Net investments (50.1) (85.4) (135.5) (29,1) (65.4) Working g capital/other p variations ((156.7)) 40.7 ((116.0)
Slide 51: Group: Net financial position 1H'10 by Business
Pirelli Group: Net financial position 1H’10 by Business €/mln Tyre Other business Other Pirelli Group June 10 Mar.10 Dec. 09 June 10 Mar.10 Dec. 09 June 10 Mar.10 Dec. 09 June. 10 Mar.10 Dec. 09 G Gross D Debt bt 1 779 1,489 1,779 1 489 1,553 1 553 101 104 101 277 259 276 1 299 1,299 1 347 1,407 1,3
Slide 52: 1H'10 Pirelli Tyre Mix
1H’10 Pirelli Tyre Mix Sales by business Sales by segment Car Consumer 60% 70% Motorbike 10% Steelcord & others Industrial 30% Truck 2% 28% Sales by channel Sales by region Replacement North America 75% Latin 9% Asia Pacific America 6% 35% MEA 10% OE Europe 25% 40% 51
Slide 53: 1H'10 Pirelli Tyre People
1H’10 Pirelli Tyre People Headcount People by region 29 048 29,048 North America Latin America 1% 27,241 43% Asia Pacific 8% MEA 11% Europe Jun. ‘09 Ju 09 Jun. ‘10 Ju 0 37% People by contract People by cluster Permanent 89% Workers 82% Employees 17% Temps & Agency Management 11% 1% 52
Slide 54: Raw Materials
Raw Materials 2Q 2010 mix Raw Materials price trend (Based on purchasing cost) 220,0 200,0 Synth. Rubber 180,0 23% Natural Rubber (+4pp yoy) 160,0 36% (+15pp yoy) Carbon black 140,0 11% 120,0 (-3pp yoy) 100,0 80,0 Chemicals 60,0 Steelcord 12% 8% (-6pp yoy) 40,0 Textiles ((-4pp 4pp yoy) QI/07 QII/07Q
Slide 55: Pirelli Tyre: 20 industrial plants in 11 Countries
Pirelli Tyre: 20 industrial plants in 11 Countries (as of June 2010) 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 C
Slide 56: Consolidated Pirelli RE Net Cash Flow
Consolidated Pirelli RE Net Cash Flow €/mln ACTUAL JUNE ACTUAL JUNE 2010 2009 Ebi before Ebit b f restructuring i costs, reval./deval. l /d l 66 6.6 (2 0) (2.0) Depreciation 2.7 3.6 Change in investments 6.6 (37.5) Change in other fixed assets (0.3) (0.7) Chenge in NWC, Funds (30.8) 15.7 Free cash f
Slide 57: Key Real Estate Portfolio Data as of June 2010
Key Real Estate Portfolio Data as of June 2010 €/mln Mkt. Value Mkt. Value Book Value UCG Net Debt NAV NIC PRE pro-quota 100% 30.06.10 LTV IAS 40 % 1) PRE pro-quota PRE pro-quota PRE pro-quota PRE pro-quota PRE pro-quota 30.06.10 (27% average) ITALY 6,254 1,775 1,653 122 999 56% 776 576 48% GERMANY
Slide 58: Italy: Key Real Estate Portfolio Data as of June 2010
Italy: Key Real Estate Portfolio Data as of June 2010 €/mln Mkt. Value Mkt. Value Book Value UCG Net Debt NAV NIC PRE pro-quota LTV 100% PRE pro-quota PRE pro-quota 1) PRE pro-quota PRE pro-quota PRE pro-quota 30.06.10 30.06.10 COMMERCIAL YIELDING & CORE 4,013 1,024 979 44 584 57% 439 388 TRADING &
Slide 59: Germany & Poland: Key Real Estate Portfolio Data
Germany & Poland: Key Real Estate Portfolio Data as of June 2010 €/mln Mkt. Value Mkt. Value Book Value UCG Net Debt NAV NIC PRE pro-quota LTV 100% PRE pro-quota PRE pro-quota 1) PRE pro-quota PRE pro-quota PRE pro-quota 30.06.10 30.06.10 DGAG (Residential) 921 377 371 7 262 69% 115 86 BAUBECON ((Re
Slide 60: Economic Results – Total Pirelli RE
Economic Results Total Pirelli RE €/mln JUNE 2010 MARCH 2010 JUNE 2009 Service platform & G&A Revenues 79.9 41.6 94.7 Services Platform/G&A Result 11.2 5.0 (3.2) V hi l & funds Vehicles f d Result from vehicles & funds (6.2) (1.2) (19.8) of which Real estate (3.4) (3.5) (22.8) of which NPL (2.8) 2.2
Slide 61: Economic Results – Italy
Economic Results Italy €/mln JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues 19.2 10.6 21.4 Fund & AM Fee Result 11.0 6.3 6.0 Agency Revenues 10.8 5.4 12.6 Agency g y Result 0.4 0.4 (3.5) Property Revenues 10.3 5.1 16.1 Property Result 3.7 1.7 4.1 Total Revenues 40.3 21.2 50.1 Service Platform
Slide 62: Economic Results – Germany
Economic Results Germany €/mln JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues 6.6 3.3 7.0 Fund & AM Fee Result 0.9 0.7 3.1 Agency Revenues 1.5 1.0 2.2 Agency g y Result 1.0 0.2 0.0 Property Revenues 13.1 6.8 13.6 Property Result 1.0 0.5 0.0 Facility Revenues 72 7.2 35 3.5 58 5.8 Facility Resu
Slide 63: Economic Results – Poland
Economic Results Poland €/mln JUNE 2010 MARCH 2010 JUNE 2009 Fund & AM Fee Revenues 09 0.9 04 0.4 11 1.1 Fund & AM Fee Result (0.2) (0.1) (0.5) Agency Revenues 0.3 0.2 0.5 Agency g y Result ((0.1)) ((0.0)) ((0.1)) Facility Revenues 0.3 0.2 1.5 Facility Result (0.5) (0.2) 0.6 Total Revenues 1.5 0.8 3
Slide 64: Economic Results – NPL
Economic Results NPL €/mln JUNE 2010 MARCH 2010 JUNE 2009 Service platform Revenues 8.4 4.4 8.7 Services Platform Result (0.6) (0.0) (2.4) Vehicles & funds Result from vehicles & funds (2.8) 2.2 3.0 Int. Inc. from shareholders' loans 1.3 0.6 0.4 Vehicles & Funds Result (*) (1 5) (1.5) 29 2.9 34 3.4
Slide 65: Participated Real Estate Assets under Management 1H 2010
Participated Real Estate Assets under Management 1H 2010 100% Quota PRE Passing Rent Passing Vacancy Book Value Market Value Net Debt (€/000) Yield Commercial Core Italy 95,099 5.9% 7.7% 1,612,607 1,738,160 1,082,738 Fondo TECLA 44.8% 40,073 5.8% 8.1% 688,773 692,700 463,142 Fondo Cloe 18.1% 30,511
Slide 66: Pro-quota Real Estate Assets under Management 1H 2010
Pro-quota Real Estate Assets under Management 1H 2010 Quota PRE Passing Rent Passing Vacancy Book Value Market Value Net Debt (€/000) pro-quota Yield quota PRE Pro-quota Pro-quota Commercial Core Italy 31,222 5.8% 7.5% 540,190 566,503 372,529 Fondo TECLA 44.8% 17,953 5.8% 8.1% 308,570 310,330 213,73
Slide 67: Rents and NPL Recoveries
Rents and NPL Recoveries (€/mln) RENTS NPL RECOVERIES 100% Pro quota 100% Pro quota 402.2 362.6 175.8 91.1 98.4 142.3 54.3 42.1 June June June June June June June June 2010 2009 2010 2009 2010 2009 2010 2009 66