NEW PIRELLI GROUP STRUCTURE

Transcription

1 NEW PIRELLI GROUP STRUCTURE Main Shareholders (*) Camfin 23.7% Assicurazioni Generali 4.6% RCS MediaGroup 4.4% Fondiaria SAI 4.2% Mediobanca 4.0% Edizione Holding 3.9% R.A.S. 3.8% 100% 100% 100% 61.7% 50.4% Pirelli Energy Cables & Systems Pirelli Telecom Cables & Systems Pirelli Tyre Holding N.V. Pirelli & C Real Estate Olimpia (*) An overall 42.2% stake of the ordinary capital is regrouped in a Shareholders Syndicate Pact

2 Successful merger and capital increase and stronger financial position PIRELLI GROUP S KEY MILESTONES Industrial businesses recovering after an impressive turnaround, with positive outlook Real Estate activities growing in size and profitability Olimpia ready to take direct advantage from TI Group results: (Olimpia share close to 20%) + Market value Net debts PBIT Cash generation 80Bl/ 30Bl/ (by end 2004) > 20% > 10 Bl PIRELLI GROUP STRENGHTS Simplified and strengthened post merger structure A balance of assets industrial, real estate and telecommuncations strongly placed in all businesses Leveraging on:. A strong and integrated management team. A strong Group culture focused on value creation. The sharing of Group knowhow Solid and reliable post merger financial structure Continued emphasis on technology and innovation allied to rigorous cost management and return on investment Businesses well positioned to capture benefits of any rebound:. New products and processes. Competitive cost structures. High potential geographic markets

3 PIRELLI INDUSTRIAL ACVITIES Pirelli Energy Cables & Systems Utilities HV/Submarine General Market Special Cables Pirelli Tyres Car Moto Industrial Steel Cord Pirelli Telecom Cables & Systems Cables & Fibers Submarine Systems BBA Systems Photonic Products PIRELLI INDUSTRIAL ACTIVITIES 77 Plants in 22 Countries Energy Telecom Tyres 33,400 Employees Energy Telecom Tyres Geographical split of sales 6034 Ml Total sales Tyres 49% 32% 7% 61% Energy 44% Africa, Asia & Pacific Italy 14% 15% North America 11% South America Telecom 7% 13% Europe 47%

4 PIRELLI TYRES WORLD Italy 14% 2970 Ml Total Sales Industrial 29% North America 7% Europe 45% Consumer 71% Africa Asia & Pacific 14% South America 20% PIRELLI TYRES RESULTS Var (%) Net Sales 2,970 2, % EBITDA % EBIT EBIT margin % 7.4% 6.7% EBIT %

5 Competitive Scenario PBIT SALES 9 MONTHS 03/02 % % % 7.3 4% LE 2.6 TOP TEN +8% ($) GoodYear Cooper 2,4% 17,6% 16% 19,1% Others Kumho 2,1% Toyo 1,9% Yoko 3,4% SRI 3,8% Michelin 19,6% 20% 6,9% 7% 4% 4% Continental 19,2% 20% Bridgestone/ Firestone Source: Company Reports PIRELLI VISION OF THE TYRE MARKET Consumer market Car Ten years market trend Billion USD, Percent Pick Up Van and SUV Motorcycles and Scooter 75 Weight of consumer market on revenues: Market 60% Pirelli 70% Total CAGR % 65 Industrial market Consumer 3.1% Truck Industrial 2.8% Earth Movers Agricultural, etc. Driven by HP segment growth (c.10% per year)

6 PIRELLI CAR & SUV PRODUCT PORTFOLIO Premium SUV ZERO ICE & SNOW Off road A/T A/T UHP STR On Road O.E. PZero Rosso PZero Giallo PZero Corsa PZero Nero Tuning Runflat Performance Comfort SUMMER WINTER & m+s P6 FOURSEASONS Winter WINTER SNOWSPORT P6 M+S P7 P6000 P3000 WINTER SNOWCONTROL PIRELLI TYRES WORLD Direct presence in over 100 markets MIRS Plants Traditional Plants Distribution Centers

7 Tyres Guidelines: SERVICE AND COSTS COMPETITIVENESS Focus and speed SUPPLIER End to end process integration & organization BUY 1 MAKE MOVE & HOLD PLANNING & CONTROL MANUFACTURING 3PL/4PL SELL DISTRIBUTION CUSTOMER Front End Back End End to end platforms B2B SAP CRM ONE CLIENT Delocalization Consumer products production volumes 51% 44% Industrial products production volumes 15% 14% Lowcost countries 49% 56% Lowcost countries 85% 86% PIRELLI TYRES WORLD International network of Integrated R&D centers Carlisle Rome Burton Manresa Breuberg Milano Guacara Campinas Santo André Merlo Plants R&D Centers 900 Technologists

8 The Role Of Innovation: THREE TIER APPROACH TO R&D CORECOM & CORIMAV New Businesses Breakthrough innovation Development of intellectual property Deployment of advanced technologies Optical components & modules 110 scientists Services & electronics integration Energy Materials & processes Innovative solutions Acceleration of product/ process renewal Sustaining innovation Product/ process improvements Offer enrichment Tyre R&D 900 technicians Industrialization of PLabs projects Key Suppliers OE Customers Motorsport teams Material Developments Product Testing Continous improvements PIRELLI FOCUS ON PERFORMANCE SEGMENT Technical investments 80% 70% 60% 50% 40% 30% 20% 10% Capex/deprec Innovation Capacity Maintenance + other Pirelli Market share 2002 European Performance segments 80% 20% R&D weight on revenues R&D spending focused on HP Additional leverage from Pirelli Labs World Performance segments 88% 12% 3,9% 4,4% 4,3% 4% World Tyre Market 96%

9 Tyres Guidelines: INNOVATION AND TECHNOLOGY OE selection on prestige endorsement Cyber tyre and vehicle dynamic interaction, teamed up with OE customers knowhow Innovative materials, thanks to advanced research support from PLabs and CCM processing Selfsupporting Tyre and TPM solutions Robotized production systems based on MIRS TM technology FERTILIZED Nominal Pressure INTERNAL REINFORCEMENT Zero Pressure