Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — H1 2006 Earnings Presentation
20 slides from Pirelli & C's earnings presentation, Sep 12, 2006
Slide 1: 1H 2006 Group Results
1H 2006 Group Results 12 September 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 After June 30th
KEY EVENTS AFTER JUNE 30th • Olimpia shareholders’ structure evolution: Pirelli from 57.66% to 70.46% • Pirelli Tyre Private Placement: Equity Value ~ €1.9 bn (38.9% equal to €740 mn) 2
Slide 4: Olimpia Shareholders' Structure Evolution
OLIMPIA SHAREHOLDERS’ STRUCTURE EVOLUTION Previous Current (since July ’06) } } Pirelli & C. 57.66% Pirelli & C. 70.46% Edizione 16.80% Edizione 20.00% B. Intesa 4.77% Olimpia Olimpia Unicredit Hopa 4.77% 16.00% *{ B. Intesa Unicredit 4.77% 4.77% 18% 19.99% 18% 80.01% Holinvest 3.6% TI ord. TI ord.
Slide 5: Pirelli Group: Pirelli Tyre Private Placement
PIRELLI GROUP: PIRELLI TYRE PRIVATE PLACEMENT Pirelli & C. 61.1% { Capitalia Merchant S.p.a. (19%) B. Intesa S.p.a. (19%) 38.9% One Equity Partners II L.P. (JPMorgan) (19%) Pirelli Tyre Speed S.p.a. LB UK RE Holding Ltd (Lehman Brothers) (19%) Mediobanca S.p.a. (19%) G. Banca Leonardo (4%) • Private
Slide 6: 1H 06 Pirelli Group Results
1H 06 PIRELLI GROUP RESULTS 1H06 1H05 ∆ 06/05 €/mn IAS/IFRS IAS/IFRS Net Sales (as reported) 2,445.9 2,281.4 7.2% Net Sales (organic) 2,365.9 3.4% EBIT 216.1 202.5 6.7% EBIT margin 8.8% (*) 8.9% Result from Equity Participations 165.2 (included dividends) 133.4 of which Olimpia 71.2 85.8 EBIT includ
Slide 7: 1H 2005 – 1H 2006: Group EBIT Variation
1H 2005 – 1H 2006: GROUP EBIT VARIATION 4.7 3.3 216.1 2.0 14.1 2.0 €/mn (12.5) 202.5 GROUP Tyres Broadband Pirelli RE Pirelli CORPORATE IPO Costs GROUP EBIT EBIT Solutions EBIT Ambiente EBIT EBIT 1H 2005 Variation EBIT Variation EBIT Variation 1H 2006 (Before Variation Variation (Before IPO Costs) I
Slide 8: FY 2005 – 1H 2006: Group Net Financial Position Variation
FY 2005 – 1H 2005: GROUP NET FINANCIAL POSITION VARIATION €/mn 162.4 1,574.9 38.2 201.0 (27.3) (13.5) 36.7 1,177.4 NFP NET CASH TELECOM FC NFP CAPITALIA P&C DIVIDENDS AT FLOW ITALIA INTERNATIONAL AT SHARES WARRANT 31.12.2005 ORDINARY SHARES PARTIAL SALE 30.06.2006 PURCHASE EXERCISE ACTIVITIES PURCHA
Slide 9: 1H 06 Pirelli Tyre Results
1H 06 PIRELLI TYRE RESULTS €/mn 1H 06 1H 05 Variation IAS/IFRS IAS/IFRS ∆Price/mix: +3.1% ∆Volumes: +4.3% Net Sales 2,018.7 1,795.8 +12.4% ∆Actual Variation: +7.4% ∆Exch. Rates: +5.0% EBITDA 292.6 279.6 +4.6% ∆Total: +12.4% EBITDA margin 14.5% 15.6% EBIT before +7.5% 201.1 187.0 IPO costs EBIT befor
Slide 10: 1H 06 Pirelli Tyre Results by Business Segment
1H 06 PIRELLI TYRE RESULTS BY BUSINESS SEGMENT €/mn FY 05 1H 06 1H 05 Variation IAS/IFRS IAS/IFRS IAS/IFRS CONSUMER Sales 2,523.7 1,402.7 1263.7 +11.0% * EBIT 202.1 140.7 119.8 +17.4% ROS 8.0% 10.0% 9.5% INDUSTRIAL Sales 1,109.2 615.7 532.1 +15.7% * EBIT 126.7 60.4 67.2 -10.1% ROS 11.4% 9.8% 12.6% T
Slide 11: 1H 06 Broadband Solutions Results
1H 06 BROADBAND SOLUTIONS RESULTS €/mn 1H 06 1H 05 Variation IAS/IFRS IAS/IFRS Net 72.7 63.9 +13.8% Sales EBITDA (0.1) (2.3) - EBITDA margin - - EBIT (0.6) (2.6) - EBIT margin - - Net Income (3.3) (3.6) - • Sales increase in BBA due to higher volume in the first half of the year • In the photonics t
Slide 12: Broadband Access Home Networking and Photonics
BROADBAND ACCESS HOME NETWORKING BBA PHOTONICS • Moving from old platform ADSL 2/2+ • Consolidation of City 8 on sales in Europe • Introducing new Dual Mode Phone in the market • Telcordia qualification DTL completed in • Introducing STB on ANT platform August DiscusTM DiscusTM Multiplay MultiMediaG
Slide 13: Pirelli & C. Ambiente: Environmental Group's Solutions
PIRELLI & C. AMBIENTE: ENVIRONMENTAL GROUP’S SOLUTIONS Total Net Sales: 39.3 €/mn Net Result: 1.1 €/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) Re
Slide 14: 1H 06 Pirelli RE Results
1H 05 PIRELLI RE RESULTS €/mn 1H 06 1H 05 ∆ 06/05 IAS/IFRS IAS/IFRS % Aggregate Revenues 1,706,2 1,741.7 EBIT Incl. Income from Equity Participations 92.3 80.3 +15% Profit Before Taxes 91.7 80.4 Group Net Income 70.0 59.8 +17% 13
Slide 15: 1H 06 Pirelli RE Achievements
1H 05 PIRELLI RE ACHIEVEMENTS • Asset Under Management increased by 15% over the last twelve months to around €14 bn • The Value of the Real Estate assets is equal to €12 bn of which €6.6 bn are in funds and the remaining in SPVs • The Net Asset Value increased by 3% to €1,086 mn over December 2005
Slide 16: Pirelli Group 2006 Outlook
PIRELLI GROUP 2006 OUTLOOK • Confirmed 2006 increase in all operating results with a sound financial structure 15
Slide 17: Back up
Back up 16
Slide 18: Pirelli Current Group Structure
PIRELLI CURRENT GROUP STRUCTURE Main Shareholders Pirelli & C. Camfin 25.3% Assicurazioni Generali 5.2% Edizione Holding 4.7% 100% Pirelli Mediobanca 4.5% Labs Fondiaria – SAI 4.3% R.A.S. SpA 4.3% 100% 61.1% 51% 70.46% Pirelli Unlisted Broadband Pirelli Pirelli Olimpia companies Tyre Ambiente Soluti
Slide 19: 1H 06 Olimpia Contribution
1H 06 OLIMPIA CONTRIBUTION €/mn 1H 06 1H 05 TI Consolidated Net Consolidated TI Income Post Minorities 1,496 1,775 Net Income Olimpia % (13.04%) (*) 1H 06 1H 05 195.1 231.7 Financial Charges & N. Income 1,496 1,775 (77.3) (89.8) others Olimpia IAS/IFRS 117.8 141.9 Net Result Contribution on 71.2 85.
Slide 20: 1H 2006 Group Results
1H 2006 GROUP RESULTS Pirelli Broadband Pirelli Tyres Pirelli RE Pirelli Ambiente Others PIRELLI GROUP Solutions €/mn 1H 2006 1H 2005 ∆ 05/06 1H 2006 1H 2005 ∆ 05/06 1H 2006 1H 2005 ∆ 05/06 1H 2006 1H 2005 ∆ 05/06 1H 2006 1H 2005 ∆ 05/06 1H 2006 1H 2005 ∆ 05/06 Net Sales (as reported) 2,018.4 1,795.