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.

Last revised: 19 Dec 2013