For the eighth consecutive year, Pirelli has been nominated the world leader in the ATX Auto Components sector of the Dow Jones Sustainability Indices, with a score of 85 points compared with a sector average of 48 points.
The results of the annual Dow Jones Sustainability Indices (DJSI) review were announced today by S&P Dow Jones Indices, one of the world’s largest providers of financial market indices, and RobecoSAM, the investment specialist focused exclusively on Sustainability Investing. Launched in 1999, the DJSI were the first global indices to track the financial performance of the leading sustainability-driven companies worldwide.
The DJSI follow a best-in-class approach, including companies across all industries that outperform their peers in numerous sustainability metrics. The sustainable performance evaluation comprises the 2,500 companies with the largest free-float on the S & P Global Broad Market Index and 59 relative sectors in 47 countries.
The Corporate Sustainability Assessment provides an in-depth analysis of financially material economic, environmental and social practices, such as innovation or supply chain management, climate strategy and Stakeholder engagement and places a special focus on industry-specific risks and opportunities.
FIRST HALF NET PROFIT +28.5% TO 192.1 MILLION EURO
RESULTS DRIVEN BY STRENGTHENING OF PREMIUM (VOLUMES +21.6%), POSITIVE DEMAND DYNAMICS IN EUROPE AND APAC AND BY FURTHER PRICE/MIX IMPROVEMENT (+5.3%)
PREMIUM REVENUES GROW TO 56.2% OF CONSUMER SALES
(50.5% IN FIRST HALF 2013)
EFFICIENCIES OF 48.9 MILLION EURO, EQUAL TO 54% OF FULL-YEAR TARGET
PROFITABILITY (EBIT MARGIN BEFORE RESTRUCTURING CHARGES) GROWS TO 14.7% FROM 12.5% IN FIRST HALF 2013
SIGNIFICANT IMPROVEMENT OF PROFITABILITY IN RUSSIA (EBIT MARGIN HIGH-SINGLE-DIGIT)
SECOND QUARTER CASH GENERATION BEFORE DIVIDENDS OF 187.1 MILLION EURO
(104.3 IN SECOND QUARTER 2013)
PIRELLI CONSOLIDATED RESULTS
EBIT: +12.6% AT 426.2 MILLION EURO (378.5 MILLION EURO ON 30 JUNE 2013)
EBIT MARGIN BEFORE RESTRUCTURING CHARGES AT 14.7% (12.5% ON 30 JUNE 2013), EBIT MARGIN AT 14.3% (12.2% ON 30 JUNE 2013)
NET PROFIT: +28.5% AT 192.1 MILLION EURO (149.5 MILLION EURO ON 30 JUNE 2013)
TOTAL VOLUMES +1.8%, WITH PREMIUM VOLUMES GROWING 21.6%
REVENUES: 2,986.9 MILLION EURO, WITH ORGANIC GROWTH OF 6.7%;
-3.3% COMPARED WITH 3,090 MILLION EURO ON 30 JUNE 2013 INCLUDING
FOREX EFFECT (-10.0%);
PREMIUM REVENUES: 1,285.1 MILLION EURO, WITH ORGANIC GROWTH OF 16.6%;
+12.7% INCLUDING FOREX EFFECT (-3.9%)
NET FINANCIAL POSITION NEGATIVE 1,935.2 MILLION EURO (1,965.6 MILLION EURO ON 31 MARCH 2014 AND 1,322.4 MILLION EURO ON 31 DECEMBER 2013)
EBIT: +11.1% TO 434.0 MILLION EURO (390.6 MILLION EURO ON 30 JUNE 2013)
EBIT MARGIN BEFORE RESTRUCTURING CHARGES AT 15.0% (12.9% ON 30 JUNE 2013), EBIT MARGIN AT 14.6% (12.7% ON 30 JUNE 2013)
CONSUMER BUSINESS EBIT MARGIN AT 14.9% (12.4% ON 30 JUNE 2013)
INDUSTRIAL BUSINESS EBIT MARGIN AT 13.6% (13.5% ON 30 JUNE 2013)
REVENUES: 2,980.8 MILLION EURO, WITH ORGANIC GROWTH OF 7.1%;
- 3.0% COMPARED WTH 3,072.9 MILLION EURO ON 30 JUNE 2013 INCLUDING
FOREX EFFECT (-10.1%)
MAURIZIO BOIOCCHI NOMINATED GENERAL MANAGER TECHNOLOGY
ALL TARGETS CONFIRMED
As an effect of the underwriting of the agreement for the disposal of 100% of the steelcord activities, this business was classified as a “discontinued operation” and the reclassified result in the financial statements under the heading “results for discontinued operative activities”. The economic indicators relative to the first half of 2014 thus refer to functioning activities and the comparative data for 30 June 2013 have been restated.
The first half in summary
Milan, 5 August 2014 – The Board of Directors of Pirelli & C. SpA today reviewed and approved results for the six months ended 30 June 2014.
The results for the first half of 2014 show growth in the main economic indicators thanks to the strengthening of the Premium segment, continuing price/mix improvement and the implementation of the efficiency plan.
In the first half Premium volumes grew by 21.6% (+20.9% in the second quarter), evidence of this segment’s positive demand dynamic, with consequent increases in market share in all geographic areas.
In the first six month of 2014 the price/mix component registered growth of 5.3% (+6% in the second quarter), as a result of improved product mixes in all business segments and price increases in emerging markets to offset forex volatility.
In the meantime, the efficiencies plan has continued, delivering benefits in the half of 48.9 million euro, 54% of the full-year target, the first results of the 350 million euro, 4-year plan (2014-2017) announced in November 2013.
The strategic focus on value and the results of the efficiencies plan contributed to improve profitability: +12.6% Ebit growth, reaching 426.2 million euro in the first half (full-year 2014 target ~850 million euro) and profitability (Ebit margin) at 14.3%, + 2.1 percentage points higher compared with the same period of 2013.
Consolidated revenues registered first half organic growth of 6.7% to 2,986.9 million euro, in particular thanks to the above mentioned improvement in the price/mix component, +5.3% (full-year target +4%/+5%). Including the forex impact – negative 10.0% and linked to the continuing appreciation of the euro and the volatility of other currencies – revenues registered a decline of 3.3%.
Total volume growth was 1.8%, as a result of the 5.1% increase of the Consumer business and the 7.4% decline of the Industrial business. The dynamic of the Industrial volumes discounts the very high rate of growth recorded in emerging markets in the first half of 2013 (+16.1%, +22% in the second quarter), the contraction of the Original Equipment market in South America and the progressive reduction of Pirelli’s exposure to the conventional tyre business in that geographic area.
Consumer revenues, totaling 2,288.3 million euro, registered organic growth of 10.3% (+1.5% net of forex impacts) supported by volumes’ growth (+5.1%) and improved price/mix (+5.2%). Ebit was 340.1 million euro, an increase of 21.4% with profitability (Ebit margin) at 14.9%, 2.5 percentage points higher than the first half of 2013.
The profitability of the Industrial business remained stable, with an Ebit margin of 13.6% despite the decline in volumes (-7.4%) and the great forex impact (-13.8% on revenues) which were offset the progressive improvement of the price/mix component (+5.9% in the half, +6.5% in the second quarter) and the lower impact of raw material costs. First half Industrial revenues totaled 692.5 million euro (organic variation -1.5%, including forex impact -15.3%).
At the geographic level, the positive business performances in Europe and the Asia Pacific region were notable, with revenues’ growth of approximately 10% and profitability (Ebit margin) above the group’s average (mid-teen for Europe, circa 20% for Apac). In South America, despite slowdowns in the Industrial market and Car Original Equipment, mid-teen profitability was confirmed thanks to price increases to offset forex volatility, mix improvement (product and channel) and the contribution from efficiencies. In Russia, in particular, the turnaround process continued, with an increase of market share – thanks to a broadening of the product range and greater territorial coverage – and positive high-single-digit profitability. The results in the Nafta and MEAI areas also improved.
The solid operations’ performance and careful management of working capital resulted in positive second quarter cash generation of 187.1 million euro before dividends (104.3 million euro in the second quarter of 2013), with a fall in net debt on 30 June 2014 to 1,935.2 million euro from 1,965.6 million euro on 31 March 2014, notwithstanding dividend payments of 156.7 million euro.
APPROVES DISTRIBUTION OF DIVIDEND OF 0.32 EURO PER ORDINARY SHARE AND 0.39 EURO PER SAVINGS SHARE
NEW BOARD OF DIRECTORS NOMINATED
VOTE IN FAVOUR OF REMUNERATION POLICY AND NEW LTI PLAN
AUTHORIZATION FOR THE ACQUISITION AND DISPOSITION OF OWN SHARES APPROVED
PIRELLI & C. SPA BOARD OF DIRECTORS MEET:
MARCO TRONCHETTI PROVERA CHAIRMAN AND CHIEF EXECUTIVE OFFICER
ALBERTO PIRELLI DEPUTY CHAIRMAN
Milan, 12 June 2014 – The shareholders of Pirelli & C. SpA met today in ordinary session and approved financial results for 2013, which ended with a consolidated net profit of 306.5 million euro and a parent company net profit of 191.9 million euro, as well as deciding upon the distribution of a dividend of 0.32 euro per ordinary share and 0.39 euro per savings share. The dividend payment date is June 19, 2014 (ex-dividend date June 16, 2014 and record date June 18, 2014).
Shareholders then established that the duration of the entire Board of Directors will be three years (until the approval of results for the year ending December 31, 2016) and determined that board members will number 15, of which 8 independent. The annual retribution for the entire Board of Directors was set at 1.5 million euro.
On the basis of the slates presented, the following individuals have been nominated as members of the Board of Directors of Pirelli & C. SpA:
Marco Tronchetti Provera
Anna Maria Artoni (independent)
Luigi Piergiuseppe Ferdinando Roth (independent)
Piero Alonzo (independent)
Emiliano Nitti (independent)
Luciano Gobbi (independent)
taken from the slate of the majority (voted for by circa 62.14% of the capital represented at the Shareholders’ Meeting) presented by Camfin SpA, also in name and on behalf of Cam Partecipazioni SpA and Cam 2012 SpA;
Elisabetta Magistretti (independent)
Manuela Soffientini (independent)
Paolo Pietrogrande (independent)
taken from the slate of the minority (voted for by circa 26.48% of the capital represented at the shareholders’ meeting) presented by a group of savings management companies and financial intermediaries.
Shareholders also approved the authorization for the Board of Directors to buy and dispose of own shares for up to 10% of Company Capital and for a maximum period of 18 months, thus renewing the previous authorization deliberated on May 13, 2013.
Shareholders expressed themselves in favour of, with 97% of the voting capital, the Company’s Remuneration Policy and approved – for the part linked to Total Shareholder Return – with 72.79% of the voting capital – the adoption of the 3-year incentive plan 2014-2016 LTI (Long Term Incentive) already announced to the market on February 28 and correlated to the targets of the 2013-2017 industrial plan.
At the conclusion of the Shareholders’ Meeting, the Board of Directors of Pirelli & C. SpA met and nominated Marco Tronchetti Provera as Chairman and Chief Executive Officer, and Alberto Pirelli as Deputy Chairman.
The Board of Directors also verified, on the basis of the available information and the statements made by the interested parties, the existence of the requisites of independence (both in accordance with legislative decree 58/1998 and the Code of Self-regulation for listed companies) with regard to all eight independent board members (Anna Maria Artoni, Luigi Roth, Piero Alonzo, Emiliano Nitti, Luciano Gobbi, Elisabetta Magistretti, Manuela Soffientini and Paolo Pietrogrande).
Francesco Tanzi, the group’s Chief Financial Officer, was confirmed as the manager with responsibility for the preparation of the company’s financial documents.
In closing, the Board of Directors postponed to the next meeting, to be called at the designation of the lead independent director, the renewal of board committees and the 231 vigilance body, which expired together with the board that had nominated them.
The Company also announces that Professor Enrico Laghi has resigned from the position of standing statutory auditor for the Company because his numerous professional commitments prevent him from carrying out his responsibilities in Pirelli with the due dedication. The Board of Directors and Audit Committee wish to express their sincere thanks to Professor Laghi for his contribution over the years.
As a consequence of this resignation and in accordance with the bylaws, the role will be filled by the alternate statutory auditor Sebastiano Umile Iacovino who is from the same slate as the person resigning.
Mr. Iacovino’s Curriculum Vitae can be seen online at www.pirelli.com.
It should be noted that the documentation relative to the Annual Report for 2013 is available to the public at the Company’s headquarters in Milan, at Viale Piero e Alberto Pirelli 25, and at Borsa Italiana S.p.A., as well as online at www.pirelli.com.
The minutes of the Shareholders’ Meeting will be available to the public in the same manner as indicated above, as well as through the authorized storage mechanism, from July 11, 2014.