Pirelli envisages an annual increase in total revenues of 10% concentrated in the Premium segment due to its strategy of selective growth and the application of a price/mix component. Volumes will grow 3% annually, with a +17% growth in the Premium segment.
A focus on this segment will produce a constant improvement in the mix which remains one of the fundamental drivers for the increase in profitability envisaged by Pirelli together with the increased impact of the Consumer and Replacement channel which are more profitable and less cyclical. By 2014 the Consumer segment will represent 75% of total sales, with an increase of 5 percentage point compared with 2011. At the same time, a more selective strategy towards Original Equipment will be adopted with a focus on key Premium clients. The Replacement channel will show an increase from 74% to 79%, with a 5 percentage point increase similar to that of the Consumer segment.
This strategy will allow Pirelli to register growth in total revenues in 2012 of 16% (10% excluding Russia) and an EBIT margin between 11% and 12%, anticipating by one year the previous industrial plan; by 2014 an EBIT margin between 15% and 16%, with an average annual growth of 25% and a contribution derived from the Consumer sector equal to 82%, a 6 percentage point increase compared with 2011.