The 2019 forecasts reflect our strategy focusing on High Value and the accelerated reduction of exposure to the Standard segment. The figures, furthermore, already take into account the marginal effects of the re-modulation of some of the terms of the licensing contract with the Prometeon Tyre Group and Aeolus. The 2019 forecasts are:

  • revenues to grow by between 4% and 6% compared with €5,195 million in 2018, underpinned by the strengthening of High Value (67% weight on revenues compared with ~64% in 2018) and the continuing improvement of the price/mix (+5% ÷ +5.5%)

  • High Value volumes to increase by ~+11% and accelerated reduction of exposure to the Standard segment (Standard volumes -10% ÷ -9%) to continue

  • total volumes: between 0 and +1% compared with 2018

  • impact of exchange rates at -1% ÷ -0.5%

  • profitability rising with an adjusted EBIT margin of ~19% (18.4% in 2018) underpinned by improvements of internal levers (price/mix and cost efficiencies)

  • weight of High Value on adjusted EBIT before start-up costs at ~85% (~83% in 2018)

  • start-up costs at ~€40 million (€48 million in 2018) and aimed at reinforcing the company’s digital transformation program, the ongoing development of Cyber solutions and start of production activities at the new JV in China

  • reduction of debt with a ratio between net financial position and adjusted EBITDA before start-up costs of ~2.1x1 compared with 2.49x at the end of 2018

  • investments of ~€430 million, in line with the 2018 figure

  1. Excluding the impact of the new IFRS 16 accounting principle, ~2.3x including first estimate of IFRS 16 impact.

Source: FY 2018 Preliminary Results Presentation

Last Revised: 28 Feb 2019