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PIRELLI TO FURTHER INVEST APPROXIMATELY 200 MILLION EURO IN ROMANIA THROUGH 2021, WILL BRING TOTAL INVESTMENT TO 740 MILLION EURO AND CREATE AROUND 500 NEW JOBS

CELEBRATES 10 YEARS OF INDUSTRIAL PRESENCE IN THE COUNTRY WITH THE VISIT OF THE ROMANIAN PRIME MINISTER DACIAN CIOLOS TO THE SLATINA HUB

Pirelli is celebrating ten years of its industrial presence in Romania and announcing further investment of around 200 million euro through 2021 at the Slatina production hub, underlining its strategic importance to the Group’s activities. By that year, the Italian tyre maker’s investment will have reached a total of around 740 million, creating around 500 new jobs and bringing annual production capacity up to 15 million units, from the present 10 million.

The ten year anniversary was marked by a visit to the Pirelli plant by Romanian Prime Minister Dacian Cioloș. He was accompanied by Finance Minister Anca Dana Dragu and Minister for Labor Dragos Pîslaru. Pirelli was represented by its Executive Vice Chairman and CEO Marco Tronchetti Provera and the CEO of Pirelli Tyres Romania Giuliano Menassi who is also the Group’s head of Research and Development.

The additional investments planned from now to the end of 2021 will allow a further improvement of Pirelli’s industrial competitiveness at the European level. Overall, the factory’s floor space, which since its inception has had the most advanced technologies for the production of car tyres for the Premium segment primarily destined to the markets of Eastern Europe, will be extended to 260,000 square metres from the present 210,000. The enhancement plan also involves the production area in Slatina dedicated to motorsport, which includes a F1 production unit which serves as a back-up for the main Pirelli F1 plant in Turkey.

Prime Minister Dacian Ciolos said: “For me, as the Prime Minister of Romania, this is a very important investment especially because it creates jobs and highly qualified work force. Pirelli also has a few hundred local suppliers, Romanian companies that are further developing together with Pirelli. In the near future, it is important to attract foreign direct investments, but also to anchor them in Romania so that they bring new investment in R&D and innovation in order to create opportunities for local communities and partners”.

Mr. Tronchetti Provera said: “Over this decade, Pirelli has never stopped growing. This is not only because of the strategic location of the Slatina plant, which for Pirelli represents a key logistics and commercial hub for all of Eastern Europe, but also because of the ability to attract and support international investments demonstrated by the country’s institutions which sees Italy as its second commercial partner and one of the most important in terms of investments”.

Pirelli committed to the local community

The Pirelli Group entered Romania in 2004 when it established the company “Pirelli Tyres Romania”. Building of the green field tyre factory began in 2005 and the tyres were manufactured in 2006. As well as its industrial presence in the country, Pirelli is involved in a number of research projects with the Universities of Bucharest and Craiova and committed to many social and cultural activities. These include a project for the dissemination of Italian culture in Slatina and, in collaboration with leading Italian soccer club Inter Milan, the Intercampus project dedicated the children of the city, as well as the partnership between Milan’s Niguarda Hospital and that of Slatina.

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PIRELLI MILAN TAKES PART TO “BIKE CHALLENGE MILANO 2016”

September 16th 2016 – Today is the first day of the European Mobility Week, promoted by the European Union in support of smart and sustainable mobility.

In occasion of the Mobility Week, Pirelli decided to join “Bike Challenge Milano 2016”, competition between companies in the Milan area that will award companies and individual employees collecting more kilometers by bike between September 16th and October 31st.

The Bike Challenge organized by LoveToRide and FIAB sees the participation of more than 100 companies interested in sustainable mobility and aware that the use of bicycles while going to work is  good both for the environment and the well-being of employees.

Click here for more details on Pirelli’s MobilityAction.


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Pirelli & C. Spa board approves results for 6 months ended 30 June 2016

-      Further growth of Premium with revenues at 65.1% of the Consumer business

-      Improved overall price/mix: +6% thanks to price increases and improved sales mix

-      Efficiencies of 51.3 million euros (45.8 million in first half 2015), 68% of 2014-2017 plan’s 350 million euros target achieved

-      Improved profitability with an EBIT (before charges) of 14.5% (14.2% in the same period of 2015 and same perimeter)

-      Profitability of Consumer business at 16.4% (15.7% in first half of 2015 with same perimeter)

-      Industrial Business impacted by persisting weakness in South America

-      Profitability increases in Europe and NAFTA. Apac confirmed as area of greatest profitability

-      Successful conclusion of debt refinancing

***

Comments on the economic data for the six months ended on 30 June 2016 – if not otherwise indicated – refer to comparisons with economic data for the six months ended 30 June 2015 for only the Pirelli Group and applying the same perimeter.

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The Board of Directors of Pirelli & C. SpA today reviewed and approved the group’s results for the six months ended on 30 June 2016. The semester was characterized by following key elements:

-       Revenues of 2,968.6 million euro, with organic growth (with the same perimeter and net of negative forex effect of 8.8%) of 5.9%, thanks to great improvement in the price/mix component (+6.0%) because of price increases in emerging markets, higher sales in the Replacement channel and different geographic and product mixes. The increase in revenues at the organic level was underpinned by the performance of the Consumer business (+7.4% organic growth) thanks to the performance of the Premium segment and mature markets, while the Industrial segment (+0.4% organic growth) was impacted by the weakness of the tyre market in South America and other emerging markets. Overall volumes were stable, with different dynamics in Consumer (+1.9%) and Industrial (-7.3%);

-       Further reinforcement of Premium, with volume growth of 13.4% (+15% solely in the second quarter after +11.7% in the first quarter) above the global Premium market trend (+9.4%). The Premium’s organic revenues increased by 11.3% to 1,607.2 million euro, growing to 65.1% of total Consumer revenues from 61.5% in the same period of 2015 (with the same perimeter);

-       Improved profitability thanks to the effect of internal levers of price/mix and efficiencies achieved to contrast forex volatility and the decline of some markets mainly in the Industrial business;

-       EBITDA margin before non-recurring and restructuring charges improved to 19.5% compared with 19.2% in the same period of 2015 and the same perimeter. EBITDA before non-recurring and restructuring charges was 578.7 million euro (588.0 million euro in the same period of 2015 and the same perimeter);

-       EBIT margin before non-recurring and restructuring charges grew to 14.5% compared with 14.2% in the first half of 2015 and the same perimeter. This results benefits, among other things, from the achievement of efficiencies of 51.3 million euro (45.8 million euro in the first half of 2015). Since 2014 total efficiencies of 238.1 million euro have been achieved, equal to 68% of the target set in the 2014-2017 4-year plan of 350 million euro. EBIT before non-recurring and restructuring charges of 429.1 million euro (434.8 million in the first half of 2015 and the same perimeter);

-       At the geographic level profitability improved in Europe and NAFTA thanks to strong growth of the Premium segment. APac was confirmed as the most profitable area with an EBIT margin above 20%.

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