Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — 9M 2005 Earnings Presentation
15 slides from Pirelli & C's earnings presentation, Nov 11, 2005
Slide 1: Group Presentation: Third Quarter – Nine Months 2005 Results
Group Presentation Conference Call with the Financial Community Third Quarter – Nine Months 2005 Results 11th November 2005
Slide 2: Group Mission
GROUP MISSION ENHANCING ENTERPRISE VALUE through LEADING TECHNOLOGY & BUSINESS INNOVATION leveraging on MANAGEMENT SKILLS driven by AN EFFECTIVE CORPORATE GOVERNANCE 1
Slide 3: 9M 05 Pirelli Group Results
9M 05 PIRELLI GROUP RESULTS 9M 05 9M 04 ∆ 05/04 €/mn IAS/IFRS IAS/IFRS Net Sales (as reported) 3,322 2,932 +13.3% Net Sales (organic) 3,035 +9.5% EBIT 278 224 +24.1% EBIT margin 8.4% 7.6% Result from Equity Participations 65 106 Olimpia 130 8 EBIT including Result from Equity Participations 473 338
Slide 4: 9M 2004 – 9M 2005: Group EBIT Variation
9M 2004 – 9M 2005: GROUP EBIT VARIATION €/mn 1 15 39 278 15 (16) (*) 224 EBIT Including Results from Equity Participations +€26 mn YoY GROUP Exchange Tyre Broadband Pirelli RE Others GROUP EBIT Rates EBIT Solutions EBIT EBIT 9M 2004 Variation Variation EBIT Variation 9M 2005 Variation (*) in 9M 04,
Slide 5: FY 2004 – 9M 2005: Group Net Financial Position Variation
FY 2004 – 9M 2005: GROUP NET FINANCIAL POSITION VARIATION €/mn Pirelli & C. Capital Increase €(1,062) mn Olimpia Capital Increase €1,344 mn 127 282 1,601 169 1,236 149 (198) 59 259 (7) (1,205) GROUP FREE CASH FLOW PIRELLI & C./ TELECOM CABLES NET CASH FLOW CHINA PIRELLI & C. FINANCIAL OTHERS GROUP N
Slide 6: 9M 05 Pirelli Tyre Results
9M 05 PIRELLI TYRE RESULTS €/mn 9M 05 9M 04 Variation ∆Price/mix: +5.2% IAS/IFRS IAS/IFRS ∆Volumes: +1.8% Net ∆Actual Variation: +7.0% 2,707 2,466 +9.8% ∆Exch. Rates: +2.7% Sales ∆Perimeter: +0.1% EBITDA 412 350 +17.7% ∆Total: +9.8% EBITDA margin 15.2% 14.2% ∆Commercial Variations: € 112mn EBIT 271
Slide 7: Pirelli Tyre: Seasonality Trend & FY 2005 Outlook
PIRELLI TYRE: SEASONALITY TREND & FY 2005 OUTLOOK PIRELLI TYRE QUARTERLY ROS (%) 10.6% 2005 10.2% 9.5% 9.2% 2004 9.1% 7.8% 9% ROS (Target FY06) 2003 8.9% anticipated in FY05 8.2% 7.4% 8.4% FY04 6.1% 6.4% 7.4% FY03 1Q 2Q 3Q 4Q • Soft market demand expected to continue till year end • 4Q raw materials
Slide 8: 9M 05 Pirelli Broadband Solutions Results
9M 05 PIRELLI BROADBAND SOLUTIONS RESULTS €/mn 9M 05 9M 04 Variation IAS/IFRS IAS/IFRS Net 81 39 nm Sales EBITDA (6) (7) nm EBITDA margin nm nm EBIT (6) (7) nm EBIT margin nm nm Net Income (7) (11) nm • First revenues contribution from Photonic products • 9M 2005 EBIT improved, as a result of: posit
Slide 9: Pirelli Broadband Solutions: Fields of Activity
PIRELLI BROADBAND SOLUTIONS: FIELDS OF ACTIVITY BROADBAND ACCESS: PHOTONICS: ENLARGING CLIENTS PORTFOLIO BECOMING A REALITY • Increasing contribution to Revenues from • First revenues contribution in 3Q 2005 businesses with Italian TLC carriers (CWDM City 8 TM) • Scouting the European TLC market to
Slide 10: 9M 05 Pirelli RE Results
9M 05 PIRELLI RE RESULTS €/mn 9M 05 9M 04 ∆ 05/04 IAS/IFRS IAS/IFRS % Aggregate Revenues 2,381.1 1,584.5 +50% EBIT Incl. Income from Equity Participations 104.5 79.6 +31% Profit Before Taxes 105.3 83.7 +25% Net Attributable Income 78.0 62.4 +25% 9
Slide 11: 9M 05 Pirelli RE Achievements
9M 05 PIRELLI RE ACHIEVEMENTS • Ebit including Income from equity participations increase by 31% to Euro 104.5 mn, with greater contribution of services, distribution network and asset and fund management fees (from 25% to above 40%) • Long term portfolio increased its weight on total Asset Under Ma
Slide 12: Pirelli Group Outlook
PIRELLI GROUP OUTLOOK • Pirelli Tyre: - 9% FY 2005 ROS confirmed • Pirelli Broadband Solutions: - 2005 Sales target confirmed - confident on growing Photonics contribution on Sales in 2006 • Pirelli RE: - committed to deliver 06-08 Growth Targets 11
Slide 13: Backup Slides
BACKUP SLIDES FrRecou
Slide 14: Pirelli Group Structure
PIRELLI GROUP STRUCTURE Main Shareholders Pirelli & C. SpA Camfin 25.4% Assicurazioni Generali 5.2% Edizione Holding 4.5% Mediobanca 4.5% 100% Fondiaria – SAI 4.3% Engine of Pirelli R.A.S. SpA 4.3% Innovation Labs 100% 51% Pirelli Start-Ups Pirelli Broadband Ambiente Solutions 100% 51% 57.7% Core Pi
Slide 15: 9M 2005 Group Results
9M 2005 GROUP RESULTS Pirelli Tyres Pirelli Broadband Solutions Pirelli RE Others PIRELLI GROUP €/mn 9M 2005 9M 2004 ∆ 05/04 9M 2005 9M 2004 ∆ 05/04 9M 2005 9M 2004 ∆ 05/04 9M 2005 9M 2004 ∆ 05/04 9M 2005 9M 2004 ∆ 05/04 Net Sales (as reported) 2,707 2,466 9.8% 81 39 107.7% 459 392 17.1% 75 35 3,322