2013-2017 Industrial Plan


“Premium for Pirelli is not just the top of the range, but a new business approach oriented to value creation.”


This Plan is the result of a strategic evolution of the transformation process that since 2010 led Pirelli to focus on segments with the highest value, and to double its profitability. The evolution of this process is a renewed approach to business management, oriented to cash generation and ensuring a high ROI.




 

2013-2017 Strategy


The Plan provides for:

  • Growth in the business segments with the highest value - Premium: 60% of Car revenues in 2016 (56% in 2013; 46% in 2011)
  • More competitive offering in the Medium segment - Focus on specialties and production cost reduction (process and platform standardization, production in low-cost countries)
  • Keeping our leadership of the Industrial Business in key markets (South America and MEA), business development in Europe – Through a more competitive offering (100% of production is in low-cost facilities) – and in Asia Pacific – Through partnerships
  • On-going innovation of products: 14 new lines of Car products, 21 of Moto products and 11 of Truck products, by the end of 2017
  • Implementation of a new efficiency program: 350 €/mln between 2014 and 2017 (=1% of revenues each year)
  • Careful management of working capital
  • Selective investments in high-return projects: 1.6 €/bln capex in the 2014-17 period (~5% of revenues in 2017, ~7% estimated for 2013, 11% in 2011)


2017 Targets




*Ebit margin before restructuring costs
**cumulated figures 2014-2017




2013 - 2017 Industrial Plan Presentation



Results achieved in the previous Plan period


The new Industrial Plan confirms the focus on Premium and efficiency programs, through which profitability was doubled compared with 2010.



2011 - 2013




Targets previous Plan period


The Consumer segment reached the target set for 2011 and 2012 Fiscal Years and, in Rapidly Developing Economies (RDEs), in 2013, too. 2013 targets were weighed down by the slowdown in the European Economy, the weakness of the Russian Car market together with delays in the development of the commercial offering and the slowdown of the Moto market, affected by the economic crisis.

Last revised: 19 Dec 2013