PIRELLI & C. S.P.A. CENTRALITY OF HIGH VALUE SEGMENT CONFIRMED
WITH GREATER FOCUS ON TYRES LARGER THAN 19 INCHES AND SPECIALTIES
IN STANDARD SEGMENT FOCUS ON 17-INCH TYRES, REDUCTION OF SMALLER SIZES
NEW PLAN'S 3 PROGRAMS: COST COMPETITIVENESS, COMMERCIAL DEVELOPMENT AND TECHNOLOGICAL INNOVATION
SOLID COMPETITIVE BARRIERS THANKS TO LINKS WITH PREMIUM/PRESTIGE CARMAKERS, TECHNOLOGY, COMMERCIAL/INDUSTRIAL DISTRIBUTION, BRAND, ESG PERFORMANCE
COST REDUCTION OVER 3 YEARS OF 510 MLN EURO GROSS OF INFLATION
INVESTMENTS OVER THE PERIOD OF THE PLAN OF ABOUT 900 MLN EURO, FOCUSED ON TECHNOLOGY, COMPARED WITH 1.3 BLN IN THE PREVIOUS 3-YEAR PERIOD
CASH GENERATION OF ABOUT 1.5 BLN EURO IN THE 3-YEAR PERIOD
IN ORIGINAL EQUIPMENT SELECTIVE GROWTH OF CLIENT BASE
IN REPLACEMENT CAPITALIZING ON PULL-THROUGH EFFECT OF HOMOLOGATIONS AND NEW SUV/CUV CLIENTS
ACCELERATION OF PROCESS AND PRODUCT INNOVATION WITH 20 NEW PRODUCT LINES
IMPROVEMENT OF CONSUMER NEEDS PREDICTIVE CAPACITY THANKS TO NEW DATA ANALYTICS PLATFORM
NEW LTI INCENTIVE PLAN FOR MANAGEMENT IN SUPPORT OF 2020-2022 OBJECTIVES
GOAL OF 100% ELECTRIC ENERGY FROM RENEWABLE SOURCES BY 2025 AND CARBON NEUTRALITY BY 2030
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TARGETS
2022 REVENUES AT 5.8 BLN EURO, WITH AVERAGE ANNUAL GROWTH OF ABOUT 3%
ADJUSTED EBIT MARGIN GROWING TO 18-19% IN 2022
INVESTMENT OVER PERIOD OF PLAN OF ABOUT 900 MLN EURO
CASH GENERATION OF ABOUT 1.5 BLN EURO OVER THE 3 YEARS
DIVIDEND POLICY CONFIRMED WITH PAYOUT EQUAL TO 40% OF CONSOLIDATED NET PROFIT
NET FINANCIAL POSITION AT -3.3 BLN EURO IN 2020 AND -2.5 BLN EURO IN 2022
***
2019 PRELIMINARY RESULTS
Revenues: 5,323.1 million euro, an increase of 2.5% compared with 2018 (2019 target≥5,300 million)
Adjusted Ebit: 917.3 million euro with a margin of 17.2% (2019 target >17%/17.5%)
Net cash flow before dividends and IFRS 16 impact: 332.9 million euro (2019 target 330/350 million euro). Cash flow before dividends after IFRS 16 impact of 344.1 million euro
Net Financial Position: 3,024.1 million euro (3,507.2 million including leasing debt of 483.1 million euro following the application of the IFRS 16 accounting principle), a reduction compared with 3,180.1 million euro on 31 December 2018. The ratio of net financial position to Adjusted Ebitda before start-up costs is 2.42x, or 2.59x including IFRS 16 impact (target 2.42x/2.36x, including IFRS 16 impact 2.59x/2.53x)
Research & Development expenses: 232.5 million euro in 2019 (4.4% of sales), of which 215.7 million euro destined to High Value activities (6.1% of segment's revenues)
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Pirelli & C. S.p.A. published this content on 19 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 February 2020 11:24:07 UTC
