HIGHLIGHTS (Euro Mln)

Transcription

1 TYRES

2 HIGHLIGHTS (Euro Mln) 2,490 2,558 2,763 2,634 2,798 2,695 NET SALES 2, , EBIT 112 NET RESULT (101) (97)

3 1999 KEY RATIOS ROE ROI , ROS

4 NET SALES VARIATIONS /1998 Var. Volume Currency Prices Agri Mix TOTAL +1.5% - 4.0% - 3.0% - 1.9% +2.4% - 5.0%

5 EBIT VARIATIONS: 1999/1998 EBIT 1998 Euro/Mln 176 Exchange rates (21) EBIT 1998 at 1999 exch. rates 155 Variances: Volume and mix Selling prices Raw Material prices/efficiency Efficiency Costs (var. and fixed) and other Agri and ATCo effects EBIT (78) (23) ( 5) 185

6 THE MARKET CHALLENGE: THE ANSWER + COOPER TIRES FULL RANGE PLAYER + PARTNERSHIPS FULL RANGE PLAYER Cost reduction Original equipment HP/UHP Leadership Winter/ SUV growth New products + Image New technologies, new materials + Run flat New Processes MIRS GROWTH

7 CHEMICALS Tyres THE BUSINESS CHALLENGE: MIRS SYNTETIC RUBBER NATURAL RUBBER OILS FABRIC STEEL CORD DOSING BAMBURY + MILLS 1 COMPOUND EXTRUDER CUSHION CALENDER TEXTILE CALENDER METALLIC CALENDER STOCKS BEADS CONFECTION COMPLEX CUTTING T.T.M.A SEMICURING DIPPING EXTRUSION BEADS TREAD SIDEWALL PLY CHAFER NYLON 0 BELTS BEADS BUILDING CURING 2 FINISHING 3

8 THE BUSINESS CHALLENGE: MIRS New Process / Product Technology TYRE DESIGN PROCESS SOFTWARE PROGRAMMING System Integrated Software PRODUCTION Tyre Design Engineer Production Engineer Challenge ESTABLISH A NEW QUALITY AND PERFORMANCE EDGE IN THE ULTRA HIGH PERFORMANCE SEGMENT

9 MIRS - 2 KEY HIGHLIGHTS pcs/day COSTS - 25% INVESTMENTS - 50% AREAS - 80% PRODUCTIVITY + 80% QUALITY +100% ENERGY - 33% LEAD TIME 72 MINUTES EXPECTED 5 UNITS IN N. AMERICA S. AMERICA EUROPE ASIA Total capacity pcs/year within 2002

10 THE BUSINESS CHALLENGE: THE FUTURE

11 THE BUSINESS CHALLENGE: COOPER ALLIANCE 1 Sales growth on channels with 2 Multibrand and delivery through Cooper logistics 3 Price recovery through channel mix (+10% on Cooper dealers) 4 Investments on branding and mix PZERO Launch in Miami Higher Advertising Pull Racing with Cadillac Scorpion & Cinturato OE Homologations on M+S

12 E-BUSINESS INTERNAL ENVIRONMENT & INFRASTRUCTURE Common Worldwide System (SAP R/3) Worldwide Dedicated Communication Network > 14,000 Networked Workstations Worldwide Standard Office Productivity Tools (APIS) > 6,000 Internet Individual Connections > 85 Live WWW -based Applications > 15 Major e-projects Running

13 THE CHALLENGE OF CHANGE: INTEGRATED SUPPLY CHAIN Unique and Integrated Planning and Control Solution Backbone for the entire Company Supply Chain Planning System Raw Material Supply Manufacturing Distribution Transportation Demand Order processing months + weeks days Order Production Order Production Feedback PRIMARY SHIPMENT Sales & Orders Sell-out sales O.E. SALES END USER SUPPLIER Scheduling Shipment Orders CONSIGNMENT SELL-IN RETAILER SELL-OUT buy make move & store sell

14 B2B SELL-SIDE: OBJECTIVE AND ACTIVITIES Activities Online Ordering Collaborative Forecasting Co-Managed Inventory Tracking & Tracing Technical & Mktg Support Payment & Statistics... Pirelli Dealer Objective Differentiate Sales Offer Through Service Drive Costs out of the Supply Chain Sell-out Visibility Target Europe: Y2K Q1 >25% Turnover via Electronic Ordering Y2K Q4 >50% Turnover via Electronic Ordering (Replacement Market Focus)

15 B2C SELL-SIDE: OBJECTIVE AND ACTIVITIES Activities Product Launches: P2500Euro... Dealer Network: Focus on Service Co-marketing P.O.S Lead/Traffic Generation End-User Data Collection On-line sales Pirelli Dealer Customer Objective Customer Intimacy Dealer Partnership

16 STRATEGIC GUIDELINES BUSINESS FOCUS Speediness NEW R&D ORGANIZATION INNOVATION FOCUS ON NEW TECHNOLOGY - MIRS High-Tech E-BUSINESS NEW PRODUCTS