Industrial Plan:
Vision 2015 and targets updates 2012-2014

On November 9, 2011, Pirelli illustrated its Industrial Plan to the Financial Community gathered in London.

Pirelli confirmed its focus on Premium – a strategy already outlined in 2010 Plan – with a stronger acceleration: the Company aims at World Premium Leadership in 2015.

To achieve this objective, Pirelli will rely upon:

  • the strength of its Brand – whose value was assessed to amount to 2.3 billion Euro at the end of 2011;
  • an unprecedented extension of its Product Range
  • the development of communication channels – from digital marketing to CRM – as well as innovative distribution channels – Pirelli stores in the main cities – with the aim of consolidating its ties with Premium clients;
  • the development of the Business in those Regions where Premium is expected to grow at higher rates
  • a more efficient, Premium-oriented production structure, with increasingly new plants. Local-for-local model adopted throughout the Group with the resulting cost advantages: in 2015, in each Region, an average of 82% of sales will be produced locally, as against 71% in 2011 (76% in 2012)

In the 2012-14 period, its strategy and actions will allow Pirelli to achieve:

  • an average yearly revenue growth of 10%, 8% excluding Russia;
  • the doubling of profitability (EBIT) compared with 2011, with a margin between 15% and 16% in 2014, as against 10% in 2011.

The strong operating cash generation – 3.2 billion Euro – expected between 2011 and 2015 will allow to:

  • support Pirelli considerable investment plan – 1.8 billion Euro, including Russia;
  • ensure a satisfactory return for Pirelli shareholders – 800 million Euro, the dividends estimated for the period;
  • further improve Pirelli financial position, by bringing the Indebtedness/Ebitda ratio down to 0.4x in 2015 (0.9x in 2011).
Last revised: 14 Mar 2013