Guidance upgrade mainly driven by Price/Mix

1. adjusted for goodwill and PPA intangibles

In light of the solid performance registered in the first half and the changed external scenario, Pirelli updates its 2022 targets:

  • Revenues between ~€6.2 and ~€6.3 bn (around €300 mln more compared with the previous target of ~€5.9 and ~€6.0 bn) with growth on an annual basis expected between +17% and +18%, as a result of:
    • total volumes’ growth between ~+0.5% and ~+1.5% (in line with the previous indication) but with a better performance in High Value, particularly in Original Equipment;
    • price/mix improving to between ~+13.5% and ~+14.5% compared with previous indications of ~+10% and ~+11%, because of additional price increases;
    • impact of forex improving and now expected to be positive at around +2.5% (previous estimate neutral impact), prudently estimating greater volatility of exchange rates in emerging countries in the second half.
  • Adj. Ebit Margin expected at ~15% (in line with previous indication) with improvement in absolute value;
  • Net cash generation before dividends expected between ~€450 and ~€470 mln (previous indications ~€450 mln) thanks to a solid operating performance and efficient management of working capital;
  • Investments confirmed at around €390 mln (~6% of revenues);
  • Net financial position confirmed at ~-€2.6 bn with a NFP/ Adj. Ebitda ratio of ≤ 2x;
  • ROIC expected at ~19%, in line with the previous indication.

Last revised: 4 Ago 2022