In the light of the results achieved in 2022 and the expected macroeconomic scenario, Pirelli expects for 2023 to achieve revenues of between ~6.6 and ~6.8 billion euros.
In detail, it expects volumes from stable to growing by ~+1%; an improving price/mix to ~+4.5% / ~+5.5% thanks to the price increases made in 2022 and those announced at the beginning of the year, as well as the improvement in the product mix; a foreign exchange impact between ~-4.5% / ~-3.5%.
Adjusted Ebit Margin is expected between >14% and ~14.5%. Efficiencies and the price/mix will offset the impact of the external scenario (raw materials, inflation and exchange rates).
With reference to the generation of net cash before dividends, a value between ~440 and ~470 million is expected, thanks to the operating performance and efficient management of working capital. This target includes the payment of long-term management incentives for the three-year period 2020-2022. It should be remembered that from 2024, following the transition to the “rolling” system, the payment of incentives will be on an annual basis with a substantial alignment expected between the impact on the income statement and cash outflow.
Expected investments are approximately 400 million (~6% of revenues). Finally, the net financial position is estimated to be around -2.35 billion, with a ratio between NFP/Adjusted Ebitda between ~1.65 /~1.7 times.