A company that has its accounts in order, which has reduced its debt and was able to go public quickly". Here, in summary, the “new” Pirelli as he tells it Marco Tronchetti Provera on the eve of the return to Piazza Affari set for October 4, at the end of the road show that began yesterday under the Bicocca tower. Without hiding the legitimate pride for having accelerated the stages of the return to the price list, brought forward by a good year compared to the initial roadmap. Thanks also to the great harmony with the Chinese partners of Marco Polo, or the giant Chem China.
It is not the only record achieved by the group: “No one has invested as much as we have in recent years – underlines Tronchetti – We have grown in terms of production capacity, we have decreased in the low range. It's a mix that guarantees higher profitability and a homologation portfolio in high-end cars that is market-leading”. Today the highest and most profitable segment of the market represents 55% of turnover, but between now and 2020 it will rise by another ten points. AND the portfolio, which currently includes 850 counterparts, will rise to 1.050.
These are the industrial strengths that will probably allow the group to achieve such a high valuation during the IPO that analysts are already talking about “Prada of tires”, providing for a placement price in line with Nokia, the Finnish company that boasts the best fundamentals in the sector. A difficult mission for what it will be the most important IPO in Europe of this 2017 (350 million shares for sale, 90% aimed at institutional investors and the minimum 10% assigned to retail). But not impossible, given the attention of the operators and the excellent setting of the market, hungry for quality offers. For this the wait is for an introductory price in the high range of the fork (from 6,3 to 8,3 euros per share, for a total of 6,3 and 8,3 billion euros) already indicated by the board of directors.
But the careful financial make-up that preceded the return will help facilitate a sprint debut. In fact, the shareholders proceeded to various extraordinary operations before the IPO which made it possible to obtain an investment grade rating from the rating agencies before listing. "We have reduced the debt – said Tronchetti – thanks to 600 million obtained from the separation of the truck activities, another 1,2 billion derive from the capital increase subscribed by the shareholders before the IPO. Another 500 million are the result of the cash flow of the last two years. “All of this – continued Tronchetti – has produced a very rapid reduction of the debt which has allowed us to go to the Stock Exchange earlier than expected. At the end of the year we will have a net debt/ebitda ratio of less than 3 times which will drop below 2 times by 2020”. All this without neglecting the distribution of the dividend which, starting from 2019, will be equal to 40% of the net result. Finally, a further propellant will be guaranteed by the launch of the new Borsa Italiana index dedicated to Italian excellence, eagerly awaited by international investors, which will have Pirelli and Ferrari as the two most representative thoroughbreds.
The "new" Pirelli therefore appears on the Stock Exchange with such a predictable character and structure to the point that Tronchetti anticipates that no acquisitions or other extraordinary transactions are envisaged “outside the current perimeter”. A novelty for a group that is always very dynamic (sometimes too much in its past) on a financial level. This too bodes well for the short and medium-term future, favored by the trend in international demand: after years of crisis (costing Pirelli two growth points less, from 21 to 19%) South America is in full recovery, the Trump effect does not affect growth in Mexico; also the Russian market where in a few months the group will be able to count on a new factory. Clear skies also on the front of relations between Tronchetti and the main shareholders, that is the Chinese of ChemChina, happy to demonstrate to the world that they can be reliable and fair partners. "The Chinese have accepted everything we put on the table with regard to governance - said Tronchetti - they themselves have set themselves constraints by demonstrating that their participation is financial in respect of the autonomy and professionalism of the management and in respect of the people , of Pirelli history and technology”.
ChemCina, moreover, accepted di fall below the 50% barrier during the IPO: its share will in fact be between 45 and 49%, ahead of Camfin (between 10 and 12%) and Rosneft (5%). This will be the definitive structure of the last season of the leadership of the entrepreneur who has confirmed his intention to hand over the baton of command in 2020. And speaking of the name of who will lead the company after that date, the number of the company he said: “There is always a name. It's inside an envelope. It may well be that it changes by 2020, as it has in the past, but it hasn't happened lately. In 2020 I'll be 72 and it's only right that leadership should pass to someone else, even if I'll always be close to Pirelli". It will therefore be an internal choice. “I see the future in good hands – adds the CEO speaking of his team of managers – all young” and the name is among them: “I've never been able to find anyone out better”.
