Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — 9M 2006 Earnings Presentation
20 slides from Pirelli & C's earnings presentation, Nov 7, 2006
Slide 1: 9M 2006 Group Results
9M 2006 Group Results 7th November 2006
Slide 2: 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 3: Key Events
KEY EVENTS • 2nd August : sale of 38.9 % Pirelli tyre (capital gain ~ € 416* mn – net cash effect ~ € 716* mn) • 30th September: restatement of Olimpia book value (negative impact ~ € 2,110* mn) • 4th October: Pirelli stake in Olimpia rose to 80% (impact on NFP ~ € 1,040* mn) • 9th October: Pirelli
Slide 4: Restatement of Olimpia Book Value at 30th Sept. 2006
RESTATEMENT OF OLIMPIA BOOK VALUE AT 30th SEPT. 2006 TI “see through” value from ~ 4 € per share to 3 € per share €/mn P&C - Statutory Accounts P&C - Consolidated Accounts Before After ∆ Before After ∆ Balance Sheet Equity 4,763 2,936 (1,827) 6,537 4,427 (2,110) attributable 5,876 3,766 (2,110) of w
Slide 5: 9M 06 Pirelli Group Results
9M 06 PIRELLI GROUP RESULTS 9M 06 9M 05 ∆ 06/05 €/mn IAS/IFRS IAS/IFRS Net Sales (as reported) 3,623.1 3,322.3 +9.1% Net Sales (organic) 3,623.1 3,404.1 +6.4% EBIT 299.7 278.0 +7.8% EBIT margin 8.3% 8.4% Result from Equity Participations 97.1 65.2 +48.9% Net Cap. Gain from 38.9% of P. Tyre Disp. 416
Slide 6: 9M 2005 – 9M 2006: Pirelli Group EBIT Variation
9M 2005 – 9M 2006: PIRELLI GROUP EBIT VARIATION EBIT Including Results from Equity Participations +€ 11.1 mn YoY €/mn 3.3 2.7 299.7 10.4 0.3* 5.0 278.0 GROUP Tyre Broadband Pirelli RE Pirelli Ambiente Others GROUP EBIT EBIT Solutions EBIT EBIT EBIT 9M 2005 Variation EBIT Variation Variation 9M 2006
Slide 7: Pirelli Group NFP Variation – 9M 2006
PIRELLI GROUP NFP VARIATION – 9M 2006 BALANCE SHEET 497.7 €/mn 162.4 38.2 201.0 1,430.8 (27.3) (715.8) 110.7 (13.5) 1,177.4 TELECOM OLIMPIA NFP NET CAPITALIA P&C FC SALE OF NFP ITALIA SHARES at OPERATING SHARES WARRANT INTERNAZIONALE DIVIDENDS 38.9% P. at SHARES PURCHASE 31.12.2005 CASH FLOW PURCHAS
Slide 8: Pirelli & C. – 9M 2006 Market Asset Value vs Corporate Net Financial Position
PIRELLI & C. – 9M 2006 BALANCE SHEET MARKET ASSET VALUE VS CORPORATE NET FINANCIAL POSITION €/bn [email protected] 5.1*** 0.8** EST. NFP SEPT. DEC. (Euro/bln) 1.1 Total Industrial Activities 0,9 0,7 Corporate 0,5 1,3 Pirelli Group NFP 1,4 2,0 (*) (*) excluding PRE acquisition in Germany 1.2* 2.0 1.1 1
Slide 9: 9M 2006 Pirelli Tyre Results
9M 2006 PIRELLI TYRE RESULTS €/mn 9M 2006 9M 2005 Variation IAS/IFRS IAS/IFRS ∆Price/mix: +3.4% ∆Volumes: +3.9% Net Sales 2,990.6 2,706.9 +10.5% ∆Actual Variation: +7.3% ∆Exch. Rates: +3.2% EBITDA before IPO costs 425.5 412.4 +3.2% ∆Total: +10.5% EBITDA margin bef. IPO costs 14.2% 15.2% EBIT before
Slide 10: 9M 2006 Pirelli Tyre Results by Business Segment
9M 2006 PIRELLI TYRE RESULTS BY BUSINESS SEGMENT €/mn 9M 06 9M 05 Variation IAS/IFRS IAS/IFRS CONSUMER Sales 2,072.0 1,894.3 +9.4% EBIT 193.9 170.5 +13.7% * Pre IPO costs ROS 9.4% 9.0% INDUSTRIAL Sales 918.6 812.6 +13.0% EBIT 84.9 100.6 -15.6% * Pre IPO costs ROS 9.2% 12.4% • Consumer sales up 9.4%
Slide 11: 9M 2006 – Pirelli Tyre Highlights
9M 2006 – PIRELLI TYRE HIGHLIGHTS • Successes in the most important winter test by the Automobilclub and by leading German, Austrian e Swiss magazine. Pirelli Winter Sottozero, Snowsport, Snowcontrol and Scorpion ICE & Snow have been appointed best in class • J.D. Power & Associates Award 2006 in th
Slide 12: 9M 06 Pirelli Broadband Solutions Results
9M 06 PIRELLI BROADBAND SOLUTIONS RESULTS €/mn 9M 06 9M 05 Variation IAS/IFRS IAS/IFRS Net 102.6 81.4 +26.0% Sales EBITDA (0.1) (5.6) EBIT (1.0) (6.0) Net Income (2.5) (6.9) • Growth in terms of volumes of the BBA business unit allowed the access business to post a positive EBIT (€ 7 mn), notwithsta
Slide 13: Pirelli Broadband Solutions: Fields of Activity
PIRELLI BROADBAND SOLUTIONS: FIELDS OF ACTIVITY BROADBAND ACCESS: PHOTONICS: ENLARGING CLIENTS PORTFOLIO BECOMING A REALITY • Continuous increase of volumes in the • More than € 10 mn revenues in CWDM traditional business of gateways City 8 TM • First sales of the new DMP telephone in several tier 2
Slide 14: Pirelli Ambiente: Environmental Group's Solutions
PIRELLI AMBIENTE: ENVIRONMENTAL GROUP’S SOLUTIONS Total Net Sales: € 54.5 mn Net Result: € 0.5 mn PIRELLI AMBIENTE PIRELLI AMBIENTE PIRELLI AMBIENTE ECO TECHNOLOGY RENEWABLE ENERGY SITE REMEDIATION Energy recovery from Environmental Gecam TM, Filters municipal solid waste Reclamation (SRF-P) Reducin
Slide 15: 9M 06 Pirelli RE Results
9M 06 PIRELLI RE RESULTS €/mn 9M 06 9M 05 ∆ 06/05 Aggregate Revenues (pro Quota) 915.1 920.1 -0.5% EBIT Incl. Income from Equity Participations 115.6 104.5 +11% Profit Before Taxes 114.6 105.3 +9% Net Attributable Income 84.0 78.0 +8% 14
Slide 16: Pirelli RE Recent Achievements
PIRELLI RE RECENT ACHIEVEMENTS • Assets Under Management at market value after the DGAG acquisition exceed € 15 bn, of which around € 2 bn abroad, therefore approaching in advance the 20% target of international assets set out for 2008 • Assets Under Management through Funds reached € 6.7 bn at mark
Slide 17: Group Outlook 2006
PIRELLI GROUP OUTLOOK 2006 WE CONFIRM 2006 INCREASE IN ALL OPERATING RESULTS, WITH A SOUND FINANCIAL STRUCTURE 16
Slide 18: Back-up Slides
BACK-UP SLIDES 17
Slide 19: Pirelli Group Structure
PIRELLI GROUP STRUCTURE Main Shareholders* Pirelli & C. Camfin 19.6% Mediobanca 4.4% 100% Edizione Holding 4.4% Pirelli Fondiaria SAI 4.2% Labs R.A.S. 4.2% Assicurazioni Generali 4.2% 100% 61.1% 51% 80% Pirelli Unlisted Broadband Pirelli Pirelli Olimpia companies Tyre Ambiente Solutions 50.3% 18% (o
Slide 20: 9M 2006 – Pirelli Group Results
9M 2006 – PIRELLI GROUP RESULTS Pirelli Tyres Pirelli Broadband Solutions Pirelli RE Pirelli Ambiente Others PIRELLI GROUP €/mn 9M 2006 9M 2005 ∆ 06/05 9M 2006 9M 2005 ∆ 06/05 9M 2006 9M 2005 ∆ 06/05 9M 2006 9M 2005 ∆ 06/05 9M 2006 9M 2005 ∆ 06/05 9M 2006 9M 2005 ∆ 06/05 Net Sales (as reported) 2,99