2020-2022 Financial Targets

€ billion

1. assuming average 40% dividend pay-out on consolidated net income in the 2020-22 Industrial Plan

Net Sales: in 2020 revenues are expected to grow to ~€5.4 billion and in 2022 to ~€5.8 billion, with a 2019-22 CAGR of ~+3%. Looking at the single drivers:

  • total volumes 2020-22 CAGR ~+1.5%÷+2%; High Value volumes growth to accelerate (~+8%), while Standard reduction to continue (~-5%)
  • price/mix to improve by ~+3% each year, assuming: 1) a slight decline in the prices component; 2) a positive mix contribution
  • exchange rates are expected on average ~-2% per year, because of the expected strengthening of the euro against the dollar and the growing volatility of currencies in emerging economies

High Value revenues will account for ~73% of Group revenues at the end of the plan period, compared with 69% expected in 2020 (about 67% in 2019).

Adjusted EBIT:

  • in 2020 is expected to be substantially stable compared with 2019: the effect of the internal levers (price/mix, volumes and efficiencies) will offset the impact of the external context (inflation of production costs, raw materials and price pressure)
  • in 2022 adj. EBIT margin is estimated to grow to 18%÷19% compared with 17.2% in 2019

Net Cash Flow:

  • CapEx: the already high technological level and adequate capacity of the production plants is the basis of the investment plan that will be more contained than the previous 3-year period - equal to ~€900 million between 2020 and 2022 compared with €1.3 billion of 2017-2019
  • more contained investments will contribute to the generation of a high level of cash flow together with the expected improvement of the operating result, more contained financial and fiscal costs, and an effective management of working capital; over the Plan period (2020-22), the total net cash flow before dividends is expected to be ~€1.5 billion, of which ~€400 million in 2020, ~€500 million in 2021 and ~€600 million in 2022
  • dividend policy foresees a payout confirmed at equal to 40% of consolidated net profit

At the end of the plan period (2022), the group Net Financial Position, including the impact of the IFRS 16 accounting principle, is expected to fall from the €3.5 billion of 2019 to ~€3.3 billion in 2020 down to ~€2.5 billion in 2022.

Last revised: 2 Mar 2020