The Board of Directors approves results for 3 months to 31 March 2011
ALL INDICATORS IMPROVED CONSOLIDATED NET PROFIT MORE THAN DOUBLED
FURTHER INCREASE IN PROFITABILITY
2011 REVENUE TARGET RAISED
PIRELLI & C. SPA
REVENUES 1,400.9 MILLION EUROS, +23.4% COMPARED WITH 1,135.0 MILLION EUROS ON 31 MARCH 2010
OPERATING RESULT (EBIT) AFTER RESTRUCTURING CHARGES 143.3 MILLION EUROS (+63.6% COMPARED WITH 87.6 MILLION EUROS ON 31 MARCH 2010), WITH PROFITABILITY (EBIT/SALES) RISING TO 10.2% FROM 7.7%
TOTAL CONSOLIDATED NET PROFIT 81.4 MILLION EUROS, MORE THAN DOUBLE COMPARED WITH 38.9 MILLION EUROS ON 31 MARCH 2010;
ATTRIBUTABLE CONSOLIDATED NET PROFIT 82.8 MILLION EUROS (39.2 MILLION EUROS ON 31 MARCH 2010)
NET FINANCIAL POSITION NEGATIVE 712.8 MILLION EUROS (678.4 MILLION EUROS ON 31 MARCH 2010), AFTER TOTAL INVESTMENT ALMOST DOUBLED TO 96.9 MILLION EUROS FROM 50.2 MILLION EUROS IN Q1 2010
PIRELLI TYRE
REVENUES 1,384.5 MILLION EUROS, +24.7% COMPARED WITH 1,100.0 MILLION EUROS ON 31 MARCH 2010
OPERATING RESULT (EBIT) AFTER RESTRUCTURING CHARGES 152.4 MILLION EUROS, +59.6% COMPARED WITH 95.5 MILLION EUROS ON 31 MARCH 2010;
PROFITABILITY (EBIT/SALES) AT RECORD LEVEL OF 11% (8.6% IN Q1 2010)
2011 TARGETS
REVENUE TARGET REVISED FROM “ABOVE 5.55 BILLION EUROS” TO “ABOVE 5.85 BILLION EUROS”. TAKES INTO ACCOUNT PRICE RISES TO OFFSET RAW MATERIAL COST INCREASES BEYOND INDUSTRIAL PLAN ESTIMATES
PROFITABILITY TARGETS CONFIRMED: EBIT MARGIN POST GROUP RESTRUCTURING COSTS BETWEEN 8.5% AND 9.5%, PIRELLI TYRE BETWEEN 9% AND 10%
INVESTMENT ABOVE 500 MILLION EUROS CONFIRMED AND NET FINANCIAL POSITION EXPECTED AT AROUND NEGATIVE 700 MILLION EUROS
Over the next three years, Pirelli will invest 300 million euros in China to meet the growing demand of the biggest car market in the world.
And it was in that country that Pirelli gained its most recent recognition in the form of the best marketing award, which it received recently during the China Auto Aftersales Summit Forum.
The prestigious award was presented to Giovanni Angelo Ponzoni, Pirelli’s director of marketing in the Asia-Pacific area, who was visibly pleased to receive this authoritative recognition. He said, “We are honoured to have won the best marketing award, which gratifies us and recognises the efforts Pirelli makes in this area.
“We are fully concentrated on our green performance products, a reason for which the F1 teams and many luxury car manufacturers chose us”, Mr. Ponzoni continued. He concluded by recalling Pirelli’s strong commitment in China, saying, “Over the next few years, Pirelli will continue to invest in the development of its products, brand marketing and technological innovation in the Chinese market and in general throughout Asia”.
• DIVIDENDS APPROVED: 0.165 EURO PER ORDINARY SHARE, 0.229 EURO PER SAVINGS SHARE
• NEW BOARD OF DIRECTORS NOMINATED
• NEW GENERAL REMUNERATIONS POLICY VOTED IN
• MODIFICATIONS TO BYLAWS AND CANCELLATION OF ASSIGNMENT RESERVE APPROVED
PIRELLI & C. SPA BOARD OF DIRECTORS MEETING:
• MARCO TRONCHETTI PROVERA CHAIRMAN AND CHIEF EXECUTIVE OFFICER; VITTORIO MALACALZA AND ALBERTO PIRELLI DEPUTY CHAIRMEN
• GOVERNANCE FURTHER STRENGTHENED THROUGH THE INSTITUTION OF STRATEGIES COMMITTEE, AND NOMINATIONS AND SUCCESSIONS COMMITTEE
• CARLO SECCHI CONFIRMED AS LEAD INDEPENDENT DIRECTOR
BOARD MEETING TO REVIEW RESULTS FOR THE 3 MONTHS TO 31 MARCH BROUGHT FORWARD TO 4 MAY
The Shareholders of Pirelli & C. SpA met today in ordinary and extraordinary session.
In the ordinary session, Shareholders approved results for the year 2010, which closed with a consolidated net profit of 4.2 million euros and a Parent Company net profit of 87.4 million euros, and the distribution of dividends of 0.165 eurosper ordinary share and 0.229 euros per savings share. The payment date is 26 May 2011 (ex-dividend date 23 May 2011).
Shareholders then established that the duration of the entire Board of Directors will be three years (until the approval of results to 31 December 2013) and determined that the number of board members will be 20, of whom 11 independent. The annual gross compensation for the entire Board is set at 1.7 million euros.
On the basis of the lists presented, the following people were nominated directors of Pirelli & C. SpA:
Marco Tronchetti Provera
Vittorio Malacalza
Alberto Pirelli
Carlo Acutis (independent) Anna Maria Artoni (independent) Gilberto Benetton
Alberto Bombassei (independent) Luigi Campiglio (independent) Enrico Tommaso Cucchiani
Paolo Ferro Luzzi (independent) Giulia Maria Ligresti
Massimo Moratti
Renato Pagliaro
Giovanni Perissinotto
Luigi Roth (independent) Carlo Secchi (independent)
The above were chosen from the majority list (voted by about 84,0% of the capital represented at the shareholders’ meeting) presented by Camfin, Mediobanca, Edizione, Fondiaria-Sai, Allianz, Assicurazioni Generali, Intesa Sanpaolo, Sinpar and Massimo Moratti, belonging to the shareholder syndicate of Pirelli & C. SpA
Franco Bruni (independent) Elisabetta Magistretti (independent) Francesco Profumo (independent) Pietro Guindani (independent)
The above were chosen from the minority list (voted by about 15.6% of the capital represented at the shareholders’ meeting) presented by a group of fund manager companies and international institutional investors.
The curricula of the directors can be seen online at www.pirelli.com.
Shareholders also voted in favour of the Group’s General Policy of Remuneration, containing the guidelines for the definition of the remuneration of executive directors and management in general.
The Board decided that the remuneration structure will be submitted to shareholders for review one year earlier than required by law.
In the extraordinary session, in conclusion, Shareholders decided to modify the company’s bylaws in order to introduce into them some powers foreseen by the legislature when Italy adopted European community directives regarding the rights of shareholders in listed companies (shareholders’ rights directives). Also during the extraordinary session, shareholders approved the voluntary reduction of company capital by 32,498,345.12 euros, in accordance with article 2445 of the civil code to attribute to net assets. This reduction is aimed at the completion of the operation of assignment of Prelios SpA shares (formerly Pirelli RE SpA) carried out during 2010 and does not entail any reduction of company capital, the amount of the reduction being destined to net assets cancelling the negative reserve generated at the conclusion of the operation of assignment. It is expected that the reduction will be finalized by August 2011, once the terms called for by law are met.
