Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Non-Deal Roadshow (February 2001)
24 slides from Pirelli & C's roadshow presentation, February 2001
Slide 1: February 2001
iReras February 2001 fimewis
Slide 2: Pirelli Group shareholder structure
PIRELLI PIRELLI GROUP GROUP SHAREHOLDER SHAREHOLDER STRUCTURE STRUCTURE (as (as of of 31.1.2001) 31.1.2001) Camfin Camfin 29.99% 29.99% Generali Generali Group Group 6.17% 6.17% PIRELLI & C. Ed. Ed. Holding Holding 6.03% 6.03% HdP HdP 6.01% 6.01% SAI SAI 5.70% 5.70% RAS RAS 5.25% 5.25% Mediobanca Me
Slide 3: 2000 preliminary results
PIRELLI PIRELLI SPA SPA 2000 2000 PRELIMINARY PRELIMINARY RESULTS RESULTS (consolidated (consolidated unaudited unaudited figures) figures) Euro Euro mn mn 2000 2000 1999 1999 Var. Var. Net Net Sales Sales 7,460 7,460 6,482 6,482 +15% +15% EBITDA EBITDA 820 820 678 678 +22% +22% % % on on Net Net Sa
Slide 4: Major extraordinary events in 2000
PIRELLI PIRELLI GROUP GROUP MAJOR MAJOR EXTRAORDINARY EXTRAORDINARY EVENTS EVENTS IN IN 2000 2000 ü ü Sale Sale to to Cisco Cisco Systems Systems of of Terrestrial Terrestrial Optical Optical Systems: Systems: 1,454 1,454 mn mn euro euro ü ü Sale Sale to to Corning Corning of of Optical Optical Comp
Slide 5: Investments: 2000 and 2001 plan
PIRELLI PIRELLI GROUP GROUP INVESTMENTS: INVESTMENTS: 2000 2000 & & 2001 2001 PLAN PLAN 2000 2000 2001 2001 Euro Euro mil. mil. Communication Communication 160 160 (E) (E) 400 ** 400 Energy Energy 100 100 (E) (E) 120 120 355 355with withAcquisitions Acquisitions ** Tyres Tyres 220 220 (E) (E) 330 **
Slide 6: The business structure - 1
PIRELLI PIRELLI GROUP GROUP THE THE BUSINESS BUSINESS STRUCTURE STRUCTURE -- 1 1 FROM FROM THE THE OLD OLD MODEL MODEL … … Corporate Corporate Cables Cables Tyres Tyres and andSystems Systems Sector Sector Sector Sector Country Country Country Country Country Country Country Country Country Country
Slide 7: The business structure - 2
PIRELLI PIRELLI GROUP GROUP THE THE BUSINESS BUSINESS STRUCTURE STRUCTURE -- 2 2 …TO …TO THE THE NEW NEW ONE ONE Corporate Corporate •• Network Network company •• Shared company model Services model Shared Services Tyres Tyres Energy Energy Communication Communication BU BU BU BU BU BU BU BU BU BU B
Slide 8: Pirelli Tyres
PIRELLI PIRELLI TYRES TYRES Expected sales at December 31, 2000 (Euro mn mn)) 2,870 (E) YoY +12% TYRE Car & Light truck Truck Moto Steel Sector Cord Shared Business Standard services and Unit Production competencies Performance Unit Market Development Unit Latin America Employees: Employees: 20,637
Slide 9: Strategies by business unit
PIRELLI PIRELLI TYRES TYRES STRATEGIES STRATEGIES BY BY BUSINESS BUSINESS UNIT UNIT CAR + LIGHT TRUCK TRUCK MOTO Ø Deployment of new Ø Allocation of Ø Introduction of plants based on new production in low MIRS process processes (MIRS) labour cost Ø Strengthening of countries Ø Focus in HP/UHP market
Slide 10: Focused manufacturing systems
PIRELLI PIRELLI TYRES TYRES FOCUSED FOCUSED MANUFACTURING MANUFACTURING SYSTEMS SYSTEMS Ø Standardisation Ø Focused working models Ø Product/process optimisation •UHP-HP •SUV •Run Flat •MIRS •PAX • Standard • Associate Brand TURKEY
Slide 11: MIRS technological excellence can be exploited on different segments
PIRELLI TYRES MIRS technological excellence can be exploited on different segments UHP ++ 33 Year Year Investment Investment plan: plan: 500 500mn mnEuro Euro Ø Ø Total Total cost cost reduction: reduction: 25% 25% Ø Ø Lead Lead time: time: from from 66 days days to to 72 72 minutes M minutes HP ++
Slide 12: Tyre as a sensor
PIRELLI PIRELLI TYRES TYRES Tyre Tyre as as a a sensor sensor Competencies to preside over Tyre + Sensors + devices in the rim in order to modify wheel conditions Mission while “running” (e.g. pressure restoration) Pirelli Tyres wants to develop tyre centric solutions and systems, with: - Speciality
Slide 13: Cables and Systems: the energy business
PIRELLI PIRELLI CABLES CABLES AND AND SYSTEMS SYSTEMS THE THE ENERGY ENERGY BUSINESS BUSINESS Expected sales at December 31, 2000 (Euro mn mn)) World # 1 Employees: 14,384 Factories: 54 (6 mixed) ENERGY ENERGY 3,160 (E) YoY +23% Industries Industries General General Utilities Utilities Submarine Sub
Slide 14: Enhancing leadership and profitability
PIRELLI PIRELLI ENERGY ENERGY ENHANCING ENHANCING LEADERSHIP LEADERSHIP AND AND PROFITABILITY PROFITABILITY Ø Ø Reorganisation Reorganisation of of production production capacity capacity and and improvement improvement of of cost cost leadership leadership Ø Ø Increasing Increasing productivity pro
Slide 15: Post merger integration
PIRELLI PIRELLI ENERGY ENERGY POST POST MERGER MERGER INTEGRATION INTEGRATION After the recent acquisitions in the energy cables business (Siemens, MM, NKF and BICC) Pirelli appears as a global leader with a strong local presence Ø Ø Pirelli Pirelli is is completing completing the the restructuring
Slide 16: The underground project
PIRELLI PIRELLI ENERGY ENERGY THE THE UNDERGROUND UNDERGROUND PROJECT PROJECT NETWORK AVAILABILITY RELIABILITY SAFETY FACTORS ENVIRONMENTAL FACTORS (EMF, visual impact…) COMPETITIVE INNOVATIVE SOLUTIONS A competitive cable system is the best solution to environmental, reliability and safety issues
Slide 17: Energy = product innovation
PIRELLI PIRELLI ENERGY ENERGY ENERGY ENERGY = = PRODUCT PRODUCT INNOVATION INNOVATION GM UT AFUMEXTM Low smoke - zero Halogen LT LV/MV/HV COMPACTTM Weight / dimension reduction LV (same power transmission) LV MV MV HV AIR BAGTM New protection system LV concept for underground LV MV MV HV Armoured Ai
Slide 18: Cables and Systems: the communication business
PIRELLI PIRELLI CABLES CABLES AND AND SYSTEMS SYSTEMS THE THE COMMUNICATION COMMUNICATION BUSINESS BUSINESS Expected sales at December 31, 2000 (Euro mn mn)) Employees: 5,802 COMMUNICATION COMMUNICATION Factories: 17 (6 mixed) 1,375 (E) YoY +24% 100% 100% 100% 100% 90% (Cisco 90% (Cisco 10% 10% )) 1
Slide 19: Creating value in a high-tech environment
PIRELLI PIRELLI COMMUNICATION COMMUNICATION Creating Creating value value in in a a high-tech high-tech environment: environment: actions actions for for the the near near future future Ø Ø Developing Developing Pirelli Pirelli Optical Optical Labs Labs Ø Ø Investing Investing in in Optical Optical
Slide 20: The optical evolution
PIRELLI PIRELLI COMMUNICATION COMMUNICATION THE THE OPTICAL OPTICAL EVOLUTION EVOLUTION Optical push from core to access and from data centre to desktop CARRIER ENTERPRISE 1990s 1995 CORE 2000s DATA 2000s CENTER 1980s 1990s METRO WORKGROUP ACCESS : DESKTOP LAST MILE & FIBER TO THE HOME
Slide 21: Fiber optics innovation
PIRELLI PIRELLI COMMUNICATION COMMUNICATION FIBER FIBER OPTICS OPTICS INNOVATION INNOVATION PAST PRODUCTS PRESENT - FUTURE PRODUCTS APPLICATIONS Long Long length, length, High High Optical Optical FreeLight FreeLightTM TM Power Power terrestrial terrestrial systems systems DeepLight Ultra Ultra Long
Slide 22: Corporate shared services
PIRELLI PIRELLI GROUP GROUP CORPORATE CORPORATE SHARED SHARED SERVICES SERVICES Pirelli Pirelli Corporate Corporate is is developing developing effective effective and and efficient efficient Shared Shared Services Services Centres Centres for for the the Group’s Group’s Sector Sector // Business Bu
Slide 23: Progressing as a networked company
PIRELLI PIRELLI GROUP GROUP PROGRESSING PROGRESSING AS AS A A NETWORKED NETWORKED COMPANY COMPANY In In 2000, 2000, key key “e-business “e-business transformation” transformation” programs programs were were launched: launched: Ø Ø New New open open IT IT architecture architecture on on which which
Slide 24: The Corning cash: rules for investing
PIRELLI PIRELLI GROUP GROUP THE THE CORNING CORNING CASH: CASH: 4 4 RULES RULES FOR FOR INVESTING INVESTING A fully committed team is evaluating: F F Value Value creation creation opportunities opportunities F F Business Business related related to to the the Pirelli Pirelli industrial industrial vo