Cash Flow Generation
Strong cash generation to be used for investments, dividend distribution and to reduce indebtedness.
Between 2014 and 2017, Pirelli envisages a gross cash generation, before investments and dividend distribution, equal to 3 billion euro, in addition to the sale of financial assets for 150 million euro.
These resources will be used to:
- Fund 1.6 billion euro to be invested over the four years of the Plan;
- Distribute more than 700 million euro in dividends, with a payout confirmed at 40% of consolidated net profits;
- Reduce our net financial position, with what is left, i.e. 850 million euro of net cash flow
The strong cash generation will improve our net financial position from the estimated <-1.4 billion euro at the end of 2013 to approximately -500 million euro in 2017, with the resulting improvement of the net debt/EBITDA ratio going from 1.2x to 0.3x.