2022 financial targets

Pirelli FY 2022 targets update: price/mix & efficiencies more than offsetting raw mat. & inflation

Ukraine conflict and China slowdown affecting profitability; solid NCF target confirmed

1. adjusted for goodwill and PPA intangibles

In view of the outlook for 2022, Pirelli expects:

Revenues ranging ~€5.9÷~€6.0 billion (previous estimate: ~€5.6÷~€5.7 billion), with:

Group volumes growing ~+0.5%÷~+1.5% (previous indication: ~+1.5%÷~+2.5%); High Value volumes are expected to increase ~+5.5%÷~+6% (previous indication: ~+6%÷~+7%) while Standard volumes are expected to decrease ~-5%÷~-4% (previous indication: ~-3%÷~-4%)
price/mix growing ~+10%÷~+11% (previous indication: ~+5.5%÷~+6.5%) thanks to further price increases and a more favourable mix
exchange rate impact now expected to be ~flat (previous indication: negative ~-1.5%÷~-2%)

adjusted EBIT margin is expected to be ~15% (previous indication: ~16%÷~16.5%), with increasing inflation and raw material costs more than offset by the price/mix and efficiencies; further actions are being planned to improve this profitability target which prudently reflects:

the impact of the Russia-Ukraine crisis, with the confirmation of an adj. EBIT of €890 million, as already indicated in the sensitivity in February, although this did not take into account the blocking of import/export flows
the drop in demand in China, due to the new lockdown measures, being partly offset by the better performance expected in North and South America

Net Cash Flow before Dividends is expected to be ~€450 million (previous indication: ~€450÷~€480 million), at the lower end of the range indicated in February
confirmed CapEx of ~€390 million (~6.5% of revenues)
confirmed Net Financial Position of ~-€2.6 billion, with a NFP / adj. EBITDA ratio of ≤2x
ROIC of ~19% (previous target: ≥19%), consistent with the expected operating performance