Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — 9M 2004 Earnings Presentation
21 slides from Pirelli & C's earnings presentation, Nov 11, 2004
Slide 1: Pirelli Group 9 Months 2004 Results
Pirelli Group 9 Months 2004 Results 11.11.04 Marco Tronchetti Provera - Chairman Giovanni Ferrario - Managing Director Industrial Businesses Carlo Puri Negri – Vice Chairman and Managing Director Pirelli RE Conference Call with the Financial Community
Slide 2: Agenda
AGENDA • 9 MONTHS GROUP RESULTS • OLIMPIA • 9 MONTHS INDUSTRIAL RESULTS • 9 MONTHS PIRELLI RE RESULTS
Slide 3: 9M 2004 Pirelli at a Glance
9M 2004 PIRELLI AT A GLANCE ... •Group Sales: € 5.3 bn, (+7.7%) compared with € 4.9 bn of first 9M 2003 (+4.0% on a like-for-like basis) •Group Operating Result: € 279 mn (+41.6%), compared with € 197 mn in the same period of 2003; ROS from 4.0% to 5.3% •Industrial Aggregate Operating Result: € 289
Slide 4: Further Developments of the Strategic Roadmap Announced in 2001
... AND IS READY FOR FURTHER DEVELOPMENTS OF THE STRATEGIC ROADMAP ANNOUNCED IN 2001 •Energy Cables and Systems & Telecom Cables: •Started the project for the business valorization •Broadband Solutions: •Established Pirelli Broadband Solutions SpA •Tyres: •New production sites in growing markets are
Slide 5: Developing the 2001 Strategic Roadmap: Energy Cables & Systems and TLC Cables
DEVELOPING THE 2001 STRATEGIC ROADMAP... Energy Cables & Systems and TLC Cables •Project of valorization aimed at their further development through the entry of selected institutional investors •Pirelli is considering to mantain a minority stake in the business •Current management will grant continu
Slide 6: Developing the 2001 Strategic Roadmap: Broadband Solutions
DEVELOPING THE 2001 STRATEGIC ROADMAP... BROADBAND SOLUTIONS •Established Pirelli Broadband Solutions SpA •Pushing 2G Photonics start-up (confirmed significant revenues with a positive EBIT in 2006) •Increasing BBA current customers’ revenues and enriching customers’ portfolio (confirmed CAGR Revenu
Slide 7: Developing the 2001 Strategic Roadmap: Tyres
DEVELOPING THE 2001 STRATEGIC ROADMAP... TYRES •Signed M.O.U. for a joint venture in China (Henan region) with an increase of 33% of Pirelli world-wide truck tyre production capacity, 50% of the radial truck tyres production •Planned two new production facilities in China: one for car tyres and a se
Slide 8: Developing the 2001 Strategic Roadmap: Real Estate and Pirelli Ambiente
DEVELOPING THE 2001 STRATEGIC ROADMAP... REAL ESTATE • Balancing short term opportunities with long- term activities • Fund Management: expected launch of 3 new funds within 1H 2005 for a total of 6-7 funds by 2006 •Growing in non-performing loans business PIRELLI AMBIENTE •Building a fully integrat
Slide 9: 9M 2004 Group Results
9M 2004 GROUP RESULTS €/mn Industrial Pirelli Total Others Businesses Real Estate 9M 04 9M 03 9M 04 9M 03 9M 04 9M 03 9M 04 9M 03 Variation % Net Sales 4,943 4,538 383 413 (21) (23) 5,305 4,928 +7.7% 502 424 52 54 (16) (10) 538 468 EBITDA EBITDA margin 10.2% 9.3% - - - - 10.1% 9.5% 289 194 36 42 (46
Slide 10: 9M 2003 – 9M 2004: Group EBIT Variation
9M 2003 – 9M 2004: GROUP EBIT VARIATION €/mn Of which in 2003 + 51 + 95 -10 €/Mln CIENA SETTLEMENT 279 + 15 -6 + 39 -7 Pirelli RE EBIT including 197 results from Equity Participation: +16 €/Mln -10 EBIT DELTA Energy TLC Tyres INDUSTRIAL Pirelli RE CORPORATE EBIT Sept 2003 Exchange EBIT EBIT EBIT Agg
Slide 11: Agenda
AGENDA • 9 MONTHS GROUP RESULTS • OLIMPIA • 9 MONTHS INDUSTRIAL RESULTS • 9 MONTHS PIRELLI RE RESULTS 10
Slide 12: Olimpia: Further Strengthening of Financial Structure
OLIMPIA FURTHER STRENGHTENING OF FINANCIAL STRUCTURE •New revolving credit line of € 2.4 bn to re-finance the existing facilities with longer maturity and better conditions •Expected closing in January 2005 •Maturity date January 2010 •Variable Interest rate: Euribor +100 bp (reduced from the previo
Slide 13: Agenda
AGENDA • 9 MONTHS GROUP RESULTS • OLIMPIA • 9 MONTHS INDUSTRIAL RESULTS • 9 MONTHS PIRELLI RE RESULTS 12
Slide 14: 9M 2004 Industrial Aggregate Results
9M 2004 INDUSTRIAL AGGREGATE RESULTS €/mn INDUSTRIAL AGGREGATE 9M 2004 9M 2003 Variation % Variation % Sales 4,943 4,538 +8.9% Organic Sales (*) 4,943 4,709 +5.0% EBITDA 502 424 +18.4% EBITDA Margin 10.2% 9.3% EBIT 289 194 +48.9% EBIT Margin 5.8% 4.3% Net Result 153 74 (*) Exchange Rates/Metal Price
Slide 15: 9M 2003 – 9M 2004: Industrial Aggregate EBIT Variation
9M 2003 – 9M 2004: INDUSTRIAL AGGREGATE EBIT VARIATION €/mn ENERGY + 19 TELECOM +17 + 110 + 47 TYRES + 74 289 (1) (52) 194 +1 LABOUR COST (27) (10) RAW MATERIALS (25) ENERGY + 13 TELECOM (45) TYRES + 33 EBIT DELTA PRICES/ UNITARY EBIT VOLUMES PRODUCTION EFFICIENCIES AMMORT. MIX Sept 2003 Exchange Se
Slide 16: Energy C&S: 9M 2004 Results
ENERGY C&S: 9M 2004 RESULTS ∆Price/mix: -1.5% €/mn 9M 2004 9M 2003 Variation ∆Volumes: +1.7% ∆Actual Variation: +0.2% Net ∆Exch. Rates: -1.1% Sales 2,187 1,966 +11.2% ∆Metal Price: +12.1% EBITDA 148 116 +27% ∆Total: +11.2% EBITDA margin 6.8% 5.9% ∆Price/mix (except metals): €+13mn ∆Volumes: €+19mn E
Slide 17: Telecom C&S: 9M 2004 Results
TELECOM C&S: 9M 2004 RESULTS €/mn 9M 2004 9M 2003 Variation ∆Price/mix: -18.2% ∆Volumes: +14.2% Net Sales 308 322 -4.3% ∆Actual Variation: -4.0% ∆Metal Price +2.3% ∆Exch. Rates : -2.6% EBITDA 3 (3) n.m. ∆Total : -4.3% EBITDA margin 1% n.m. ∆Price/mix !Price/mix: €+1.8% !Price/mix:(except metals): +1
Slide 18: Tyres: 9M 2004 Results
TYRES: 9M 2004 RESULTS € /mn 9M 2004 9M 2003 Variation ∆Price/mix: +2.6% ∆Volumes: +8.4% Net Sales 2,448 2,250 +8.8% ∆Actual Variation: +11.0% ∆Exch. Rates : -2.2% ∆Total sales: +8.8% EBITDA 351 311 +13% EBITDA margin 14.3% 13.2% ∆Price/mix: €+33mn ∆Volumes: €+74mn EBIT 217 174 +25% ∆Exch. Rates: €-
Slide 19: Agenda
AGENDA • 9 MONTHS GROUP RESULTS • OLIMPIA • 9 MONTHS INDUSTRIAL RESULTS • 9 MONTHS PIRELLI RE RESULTS 18
Slide 20: Pirelli RE: 9M 2004 Key Financial Data
PIRELLI RE: 9M 2004 KEY FINANCIAL DATA € /mn Actual Actual Variation Sept 2004 Sept 2003 % Aggregate Production Value (net of acquisitions) 1229 982 25% Consolidated Production Value 354 389 EBIT 36 42 Income from Equity Participations 52 30 EBIT incl. Income from Equity Participations 88 72 23% Pro
Slide 21: Pirelli RE: 9M Key Achievements
PIRELLI RE: 9M KEY ACHIEVEMENTS •EBIT including income from equity participations grew to € 88 mn (+23% YoY) •Over € 710 mn of acquisitions of real estate assets •In the Fund Management business we have placed funds (Tecla and Cloe) for a market value of € 1.8 bn. At the beginning of September Pirel