2021 FINANCIALS TARGETS

A more detailed guidance will be provided on March 31st


In 2021, the global Car tyre market is expected to register “high-single-digit” growth. Car ≥18’’ confirmed as the segment with the greatest growth and in 2021 is expected to increase by “double-digit” levels thanks to a recovery of demand in both channels, Original Equipment and Replacement, which will return to 2019 levels.

In this context Pirelli aims to:

  • reinforce leadership in High Value, thanks also to strong growth in pull-through demand in Car ≥19”, driven by homologations garnered by Pirelli in recent years with the main Prestige and Premium carmakers; the growth of Car ≥18” volumes will be more balanced between O.E. and Repl., compared with what happened in 2020
  • renew its product range for the Replacement channel
  • further strengthen its positioning in China, also leveraging the on-line channel
  • continue with implementation of “Cost Competitiveness” efficiencies plan, as presented to the market on 19 February 2020
  • invest in digitalization, improving mix and quality

Pirelli 2021 forecasts:

  • Revenues: ~€4.7 ÷ ~€4.8 billion (€4.3 billion in 2020), sustained by the above mentioned over-performance of the Car ≥18" segment and improvement of the price/mix; negative forex impact
  • adj. EBIT margin: seen at >14% ÷ ~15%; price/mix will compensate for the increase in materials’ cost
  • confirmation of net benefits foreseen from the Competitiveness Plan presented in February 2020 which will broadly offset costs linked to certain activities which were suspended in 2020 as foreseen in the Covid Action Plan
  • Net Cash Flow before dividends expected at between ~€300 ÷ ~€340 million (€207.6 million in 2020, excluding the impact of the convertible bond) after investments equal to ~7% of sales

More details of the 2021 outlook will be provided during the Investor Day presentations on 31 March 2021.

Last revised: 10 Mar 2021