The Industrial Plan forecasts revenues to grow by an average growth rate of approximately 7.5% between 2013 and 2016, enabling Pirelli to reach 7.5 billion euro by the end of the period.

Growth in value-added segments and an incisive efficiency plan underpin the expected improvement in profitability: ~15% Ebit margin before restructuring costs expected in 2016, +2pp growth with respect to 2013.

The expected strong cash flow generation will be used to fund investments, distribute dividends and reduce indebtedness to reach a target ratio between net debt and Ebitda of 0.3x in 2017 as compared with 1.2x in 2013.

Pirelli 2013-2017 Industrial Plan is strongly oriented to value creation, as witnessed by Return On Investments (ROI), which is expected to hit approximately 28% in 2017, an increase with respect to the 20% figure of 2013, and in line with Pirelli Premium attitude.

This improvement will be made possible by the profitability increase forecast in all Business Areas, with an EBIT margin at ~15% in 2016 vs. ~13% in 2013, and by the benefits of past investments.

2014-2016 Consumer Targets

2014-2016 Industrial Targets

Last revised: 19 Dec 2013