Financial highlights

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Revenues

€ million

Revenues ∆ '15 vs. '14 ∆ '16 vs. '15 ∆ '17 vs. '16 ∆ '18 vs. '17

Volumes 0.7% 3.5% 1.0% -3.1%
Of which High Value 17.1% 15.5% 12.5% 11.0%
Price/Mix 4.1% 3.4% 6.9% 6.8%
Foreign Exchange 2.0% -4.4% -0.7% -5.9%
Perimeter5 0.0% 1.5% 0.4% -0.7%
Total Revenue Growth 6.8% 4.0% 7.6% -2.9%

Adjusted2 EBIT without start-up costs6

€ million

€ million FY 20147 FY 20157 FY 20167 FY 2017 FY 2018 ∆ '18 vs. '17


Revenues 4,480 4,785 4,976 5,352 5,195 -2.9%
Of which High Value 45% 52% 55% ~58% 64% +7.5%
Of which Standard 55% 48% 45% ~42% 36% -17.1%


Adjusted1 EBITDA without start-up costs6 890 1,021 1,082 1,175 1,279 +8.9%
Adjusted1 EBITDA margin w/o start–up costs6 19.9% 21.3% 21.7% 22.0% 24.6% +2.6pp


Adjusted2 EBIT without start-up costs6 654 769 844 927 1,003 +8.2%
Of which High Value 68% 77% 81% ~83% 83%
Of which Standard 32% 23% 19% ~17% 17%
Adjusted2 EBIT margin w/o start-up costs6 14.6% 16.1% 17.0% 17.3% 19.3% +2.0pp


Adjusted2 EBIT 654 769 844 876 955 +9.0%
Adjusted2 EBIT margin 14.6% 16.1% 17.0% 16.4% 18.4% +2.0pp
Net Income (loss) from continuing operations 220 (364) 164 263 449 +70.5%
Net Income adjusted3 281 388 297 387 576 +49.0%
Net Income adjusted3 margin 6.3% 8.1% 6.0% 7.2% 11.1%
Adjusted1 EBITDA without start-up costs6 - CapEx 592 672 742 686 816
Cash conversion ratio4 67% 66% 69% 58% 64%
CapEx on Revenues 6.6% 7.3% 6.8% 9.1% 8.9%
Net Financial Position 1,038 1,241 4,961 3,219 3,180
Total Net Leverage5 1.2X 1.2X 4.6X 2.7X 2.49X
Research & Development costs 181 187 209 221 219
R&D costs / Revenues 4.0% 3.9% 4.2% 4.1% 4.2%
  • 1. Adjusted EBITDA: calculated by adjusting EBITDA for non-recurring and restructuring expenses, the contribution to the consolidated financial statements made by Pirelli Venezuela C.A. and the contribution to the consolidated financial statements made by the Steelcord activities.
  • 2. Adjusted EBIT: calculating by adjusting Operating profit (EBIT) for amortization of intangible assets included in PPA, non-recurring and restructuring expenses, the contribution to the consolidated financial statements made by Pirelli Venezuela C.A. and the contribution to the consolidated financial statements made by the Steelcord activities.
  • 3. Net income adjusted: calculated by adjusting Total net income (loss) for EBIT adjustments, the Venezuela deconsolidation, Net financial expenses and Tax.
  • 4. Cash conversion ratio: calculated by dividing Adjusted EBITDA - CapEx by Adjusted EBITDA.
  • 5. Total Net Leverage: calculated by dividing Net Financial Debt by Adjusted EBITDA without start-up costs.
  • 6. Start-up costs are related to (i) the start-up phase of programs addressing new customer requirements such as connectivity (cyber assets) and our return to the bicycles business (the Velo project), (ii) activities addressing the digital transformation of society, and (iii) work on the conversion of the Aeolus car factory acquired on October 1, 2016, from the production of Aeolus-brand products to Pirelli-brand products.
  • 7. Carve-out figures

Revenues

€ million

Revenues drivers ∆ YoY

Volumes -3.1%
Of which High Value +6.0%
Price/Mix +5.4%
Foreign Exchange / IAS 29 Argentina +0.5%
Total +2.8%

Adjusted3 EBIT w/o Start-Up costs4

€ million

€ million 9M 2018 9M 2019 ∆ YoY


Revenues 3,925 4,036 +2.8%
Of which High Value 2,530 2,720 +7.5%
Of which Standard 1,395 1,316 -5.7%


Adjusted2 EBITDA without Start-Up costs4 936 1,008 +7.6%
Adjusted2 EBITDA without Start-Up costs4 margin 23.9% 25.0%


Adjusted3 EBIT without Start-Up costs4 732 714 -2.4%
Adjusted3 EBIT without Start-Up costs4 margin 18.7% 17.7%


Adjusted3 EBIT 700 685 -2.2%
Adjusted3 EBIT margin 17.8% 17.0%


Net income before discontinued operations 378 386 +2.0%
Net Income margin 9.6% 9.6%


  • 1. Net of Forex effect.
  • 2. Adjusted EBITDA: calculated by adjusting EBITDA for non-recurring and restructuring expenses, the contribution to the consolidated financial statements made by Pirelli Venezuela C.A. and the contribution to the consolidated financial statements made by the Steelcord activities.
  • 3. Adjusted EBIT: calculating by adjusting Operating profit (EBIT) for amortization of intangible assets included in PPA, non-recurring and restructuring expenses, the contribution to the consolidated financial statements made by Pirelli Venezuela C.A. and the contribution to the consolidated financial statements made by the Steelcord activities.
  • 4. Start-up costs are related to (i) the start-up phase of programs addressing new customer requirements such as connectivity (cyber assets) and our return to the bicycles business (the Velo project), (ii) activities addressing the digital transformation of society, and (iii) work on the conversion of the Aeolus car factory acquired on October 1, 2016, from the production of Aeolus-brand products to Pirelli-brand products.

Last revised: 29 Oct 2019

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