PIRELLI, THE RUSSIAN PARTNER LIKES THE GUIDE OF TRONCHETTI. THERE WILL NOT BE A STOP (AS IN THE TIMES OF TELECOM)
On the third day, sales on Pirelli slow down. And in Piazza Affari a more meditated interpretation of the alliance between Marco Tronchetti Provera and the Russian giant Rosneft is making its way: “The speculative appeal on the Pirelli stock has failed – is Websim's analysis – but the entry of Rosneft in the capital could lead to productive and commercial advantages for both companies in the medium term”. A perspective that goes beyond the agreements that are already operational, from the agreement for the opening of a series of Pirelli sales and service points in the Rosneft service stations in Russia to the joint investment in Armenia, where Pirelli and Rosneft have undertaken to jointly carry out Research & Development activities in the materials used for the production of tyres, in particular in the field of synthetic rubber.
From now on, above all, Marco Tronchetti Provera will be able to open a new chapter in his long experience as a manager, often in the past marked by "complex" relationships with shareholders and financial groups. In fact, the shareholders' agreements with Rosneft mark a novelty: this time it is the manager's travel companions who ask for guarantees against the risk that Tronchetti leaves the leadership of the group prematurely "without just cause" (in which case they could sell their shares to the same Mtp with a yield of 10%) and not vice versa. Different music compared to the pressing of the Malacalza, forced to give up with their 7% the dream of playing a game on their own at Bicocca, or that of US private companies and hedges who smelled the smell of stew.
At Pirelli, in short, Marco Tronchetti Provera managed to pilot the transition from the end of Mediobanca's parlor to a new position in the industrial arena without dangerous repercussions. An objective pursued since the days of the Telecom Italia adventure, when "MTP" had to raise the white flag because the group had not been provided with the necessary support for a growth strategy based on the transition from infrastructure to content, as Tronchetti proposed first in talks with Rupert Murdoch and Telefonica, then with Carlos Slim and At&t. “Italian capitalism is fragile, based on the support of banks. Telecom Italia's lesson should teach all entrepreneurs that in order to run a business well, it is necessary to have the will and willingness to put one's hands in one's pocket and commit one's assets”. This is the thesis of Maurizio Dallocchio, professor of corporate finance at Bocconi e Past Dean of the SD, exposed in front of the cameras of Direct grip, a countercurrent reading of the experience of the chapter Tronchetti Poor driving damages, to justify the reversal of the former incumbent of the telecommunications companies, criticisms have been raised on the alleged management errors or on the lack of investments. If anything, as has happened in other phases of the troubled story of private Telecom, the support of stable investors has failed, the same ones on whom other European groups with similar performances have been able to count.
Accounts in hand, says Dallocchio, the management of Tronchetti deserves ample sufficiency. Pirelli takes control of Telecom Italia with a total debt of 44 billion while at the time of the exit of Mtp the figure is equal to 3 billion. The improvement (35,7 billion) is the result of cash flows generated by operations: 7,6 billion. “There has been a very generous generation of cash flow – said Dallocchio – It's a very good result, more or less 58,7 billion a year. For every hundred euros of turnover, liquidity is generated for 10-41 euros“.
This performance, adds Dallocchio, is not linked to an alleged brake on investments. “Indeed – he specifies – compared to France Telecom, Telefonica, British Telecom has invested more than all the others in relation to turnover”. In support of this thesis "Agcom itself, in its 2004 report, judges the Telecom network among the most advanced in the world". Finally, Telecom Italia managed by Pirelli left about 22% in Piazza Affari, in line with the TLC index for the same period (-21%), conditioned by negative peaks such as -53% for Deutsche Telekom.
A history of yesterday that is worth reliving today at the debut of the new chapter of Tronchetti's experience at the helm of Bicocca, a story that has lasted for 22 years and which, also due to the explicit mandate of the Russian partner, will have to last at least 5 more years. With good prospects, given that at current prices Pirelli is traded on the Stock Exchange at a multiple Ev/Ebitda 2014 of 5,4 times, substantially in line with the historical multiple of 5,5 times, but definitely at a discount compared to the 6,7 times of the competitor Continental.
