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PIRELLI TOP PARTNER OF “ZANETTI AND FRIENDS MATCH FOR EXPO MILANO 2015”

Pirelli will also take to the field alongside Javier Zanetti and the other great champions who made the history of soccer, in the charity initiative “Zanetti and Friends Match For Expo Milano 2015” which will take place at the Stadio Meazza on May 4th, 2015. The event, which from the field of San Siro wants to give a symbolic “kick off” to the Universal Exposition which begins on May 1st, sees Pirelli in the role of Top partner for the initiative and as jersey sponsor for the team that will go up against one carrying the Alfa Romeo brand, the match’s other Top partner.

The support for “Zanetti and Friends Match For Expo Milano 2015” reaffirms Pirelli’s commitment to the promotion and dissemination of sport as an instrument of integration and dialogue between different cultures and generations, as well as further strengthening the relationship between Pirelli and Expo. In 2014, in fact, Pirelli supported the “Inter-religious Match for Peace – promoted by Javier Zanetti’s Fondazione P.U.P.I. and by Scholas Occurrentes – to be an ambassador for the values of diversity, multiculturalism and dialogue, always central to Pirelli.

Being one of the protagonists of Expo also with this initiative is one of the ways in which Pirelli, in line with its international mission, wants to contribute to this great international event which for several months will transform the city into the centre of the world, a crossroads for different cultures and lifestyles. For this reason, Pirelli already supports the “Albero della Vita”, the exposition’s icon, as a symbol of creativity and industrial quality which characterizes the country within Expo. Further, Expo Milano 2015, has already supported Pirelli giving its patronage to “Form and Desirer”, the exhibition dedicated to the Pirelli Calendar which ended last month and was organized and produced by GAmm Giunti and Palazzo Reale, which hosted the show in its own rooms.

Pirelli’s commitment to “Zanetti and Friends Match For Expo Milano 2015” bears witness to the Company’s commitment to the creation of a society of solidarity and ethics, above all between young people, also through sport. The company’s passion began in 1895 in cycling, followed in 1913 by Pirelli’s entry into the world of motorcycles where it remained until 1956, only to return in at the end of the 1990s, becoming from 2004 sole supplier of the Superbike world championship. It began in motorsport in 1907 when Pirelli tyres were used on “Itala” which participated in the Peking-Pars raid. It was the beginning of an adventure which saw it also as a protagonist in the Mille Miglia, the world of Rallies, Grand Touring up to Formula 1 where Pirelli, since the 2011 season, has been the sole supplier for all the teams.

Beyond the world of motors, Pirelli’s most famous relationship with sport is that with the world of soccer. This began in 1877 when the production of articles in rubber for sport commenced and in 1922 it evolves into a patent for the rubber treatment of soccer balls. In 1926, Piero Pirelli – the company’s founder’s son – promotes the construction of the San Siro stadium, still one of Milan’s symbolic locations and which today hosts the “Zanetti and Friends Match For Expo Milano 2015”. But it is in 1995 that Pirelli’s relationship with soccer becomes even closer, when its history becomes entwined with that of Inter, one of the world’s most important and well known clubs. A relationship which sees Pirelli also as a supporter of the Inter Campus project, born in Italy and subsequently exported also to other countries of the world with the goal of helping children in difficulty setting them on thepath of scholastic and sporting education. Pirelli’s commitment to society is not limited to sport, but takes many forms of social involvement: since its foundation, in 1872, Pirelli has in fact promoted civic progress in all the communities where it operates, supporting social, environmental, cultural and sporting initiatives throughout the world in the context of health, education and training.

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Categories: Group Sustainability


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PIRELLI SUPPLIER AWARDS 2015

The 16th of April, at the Bicocca Headquarter, Chairman and CEO Marco Tronchetti Provera has awarded our best suppliers with the Supplier Awards 2015.

Nine international suppliers have been selected considering different evaluation criteria: safety, innovation, quality of materials, sustainability, level of risk and supply-chain efficiency.

The awarded suppliers come from different sectors, from raw materials to logistics, to software, demonstrating that multiple and diverse competences contribute to Pirelli’s success.

At the moment, about 12,000 companies work with us. Selected on the basis of stringent criteria of compatibility with our way of doing business, characterised by product innovation and quality, suppliers are an ample and complex range, within which the nine 2015 award winners represent absolute excellence.

Our sincere wish is to maintain a beneficial and long-lasting collaboration.


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BOARD OF PIRELLI & C. SPA APPROVES CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

The company recalls that on February 12, 2015 it released to the market preliminary data for 2014. The present communique as well as reporting the same economic indicators already announced in February, includes new elements, such as net profit and dividends, approved by today’s meeting of the Board of Directors.

  • TOTAL NET PROFIT: +8.6% TO 332.8 MILLION EURO (306.5 MILLION EURO IN 2013) AFTER VENZUELA IMPACT OF 72 MILLION EURO AND ADJUSTMENT OF THE VALUE OF FINANCIAL SHAREHOLDINGS

  • THE BOARD TO PROPOSE TO SHAREHOLDERS’ MEETING THE DISTRIBUTION OF A DIVIDEND OF 0.367 EURO PER ORDINARY SHARE (0.32 PRIOR YEAR) AND 0.431EURO PER SAVINGS SHARE (0.39 EURO PRIOR YEAR)


CONSOLIDATED RESULTS

  • EBIT: +6.8% TO 837.9 MILLION (784.7 MILLION IN 2013), IN LINE WITH 2014 TARGET OF APPROX. 840 MILLION

  • EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 14.4% (13.4% IN 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT13.9% (12.9% IN 2013)

  • REVENUES: 6,018 MILLION, IN LINE WITH THE TARGET OF >€6.0/<6.1 BILLION, WITH ORGANIC GROWTH OF 5.9%; -0.7% COMPARED WITH 6,061 MILLION IN 2013 INCLUDING FOREX EFFECT (-6.6%)

  • NET FINANCIAL POSITION NEGATIVE 979.6 MILLION EURO;

EXCLUDING STEELCORD DISPOSAL THE FIGURE IS 1,167.5 MILLION BETTER THAN 2014 TARGET OF ~1,200 MILLION (1,322.4 MILLION AT END 2013 AND 2,003.9 MILLION ON 30 SEPTEMBER 2014)

TYRE ACTIVITIES

  • EBIT: +4.5% TO 852.6 MILLION (815.7 MILLION IN 2013)

  • EBIT MARGINE BEFORE RESTRUCTURING COSTS AT 14.7% (13.9% IN 2013), EBIT MARGIN AFTER RESTRUCTURING COSTS AT 14.2% (13.5% IN 2013)

  • TOTAL VOLUMES +2.0% , CONSUMER VOLUMES +5.0% AND PREMIUM VOLUMES +17.8%, INDUSTRIAL VOLUMES -6.5% DUE TO THE SLOWDOWN OF SOUTH AMERICAN MARKET

  • PREMIUM REVENUES: 2,536,0 MILLION, WITH ORGANIC GROWTH OF 13.2%; +11.5% INCLUDING FOREX EFFECT (-1.7%). PREMIUM EQUAL TO 55% OF CONSUMER REVENUES (+4.2 PERCENTAGE POINTS COMPARED TO 2013)

  • REVENUES: €6,007.5 MILLION, WITH ORGANIC GROWTH OF 6.2%; – 0.4% COMPARED WITH 6,030.6 MILLION IN 2013 INCLUDING FOREX EFFECT (-6.6%)

  • CONSUMER EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 15.1% (13.7% IN 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT 14.7% (13.3% IN 2013)

  • INDUSTRIAL EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 13.1% (14.6% AT END 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT 12.6% (14.1% AT END 2013). THE INDUSTRIAL ANNUAL PROFITABILITY TREND REFLECTS THE 6.5% FALL IN VOLUMES MAINLY IN EMERGING MARKETS

2015 TARGETS CONFIRMED

  • CONSOLIDATED EBIT ~930 MILLION EURO AFTER RESTRUCTURING CHARGES OF APPROX. 40 MILLION EURO

• TOTAL REVENUES FORECAST TO GROW BY +6%/+6.5% TO APPROX. 6.4 BILLION EURO DERIVING FROM:

- VOLUME GROWTH EXPECTED AT EQUAL TO OR ABOVE+3%. PREMIUM WILL BE THE DEVELOPMENT DRIVER WITH A RATE OF VOLUME GROWTH EQUAL TO OR ABOVE +10%

- PRICE/MIX GROWTH AT EQUAL TO OR ABOVE +4%

- FOREX IMPACT AT ABOUT -1%

  • INVESTMENT BELOW 400 MILLION EURO

• CASH GENERATION BEFORE DIVIDENDS OVER 300 MILLION EURO BEFORE STEELCORD DISPOSAL

  • 2015 TARGETS REFLECT ADJUSTMENT OF VENEZUELAN EXCHANGE RATE TO 20 BOLIVAR PER US DOLLAR

CAMFIN – CHEMCHINA OPERATION

With regard to the operation announced by Camfin and ChemChina – without prejudice to the valuations which, on the basis of the applicable laws, the independent directors and board of directors will be called upon to make regarding the public tender offer when it is launched – the Board of Directors takes note of the friendly nature of the operation, the characteristics of which – on the basis of that which has been made public – are consistent with the strategy in the Industrial sector which already foresaw paths of growth and aggregation in geographically strategic areas like Asia.

***

As a consequence of the underwriting of the agreement to sell 100% of the steelcord activities, that business has been classified as a “discontinued operation” and the reclassified results are in the accounts under the heading “results of disposed operating activities”. The economic indicators relative to 31 December 2014 thus refer to the activities in function and the comparative data of 31 December 2013 have been restated. The 2014 targets – previously indicated using a like-for-like perimeter – have been rectified, excluding the steelcord contribution and are now >€6.0/<6.1 billion for revenues and c. €840 million for EBIT.

The Board of Directors of Pirelli & C. SpA met today to review and approve results for the year ended December 31st, 2014. The year’s performance, which saw growth in the main economic indicators, was characterised in particular by:

  • growth above expectations of the Premium segment, with volumes increasing 17.8% (above the 2014 target of >16%), and the consequent strengthening of Pirelli’s positioning in all main geographical areas, in particular Apac. Premium revenues accounted for 55% of Consumer revenues, an increase from 50.8% in 2013;
  • the price/mix component at +4.2% (in line with the 2014 target of about +4%/~+5%) thanks to the performance of Premium, the greater weight of sales in the replacement channel and price increases in emerging markets to compensate for currency devaluations;
  • organic growth in revenues +5.9% (-0.7% net of the negative forex variation of 6.6%). As well as the already mentioned price/mix, higher volumes (+2%) also contributed. The 5% volume growth in the Consumer business, in particular, offset the 6.5% decline in volumes of the Industrial business which discounts the unfavourable economic context of the Latam market, in particular in Original Equipment;
  • the achievement of internal efficiencies of €92.4 million (in line with the annual target of approximately €90 million of the approximately €350 million four-year efficiencies plan for 2014-2017);
  • the marked improvement in profitability, with EBIT growth of 6.8% to €837.9 million (in line with the target of circa €840 million) and an EBIT margin of 13.9% – with growth of one percentage point compared with 12.9% at the end of 2013 – thanks to the Premium strategy, price increases in emerging markets, and the efficiencies which more than offset the negative forex impact and inflation in production factors.
  • forex volatility only partially influenced the operating results at the group level thanks to Pirelli’s ever more balanced presence in the various geographic regions and to the production policy of our factories which are approximately 80% dedicated to supplying demand from local markets.
  • the positive performances in the Apac, Europa and Nafta areas, with respective revenue growth of 17.5% (Apac) and approximately 5% in Europe and Nafta and an improvement in profitability which attenuated the effects of the slowdown in the South American market;
  • the turnaround of the business in Russia, characterised by a marked improvement in the product mix and positive “mid-single-digit” profitability from “negative” in 2013, and improvement in the MEAI area;
  • net profit of 332.8 million euro, an increase of 8.6% after the impact of the devaluation of the Venezuela exchange rate (72 million euro) and the adjustment of shareholdings (-87 million euro);
  • cash generation before dividends and the steelcord disposal above expectations at approximately €311.6 million (above the 2014 target of >€250 million). Taking receipts from the steelcord disposal into account, cash generation before dividends was approximately €499.5 million;
  • the improvement in the net financial position which as at 31 December 2014 was €979.6 million after the disposal of steelcord or, excluding the disposal of the steelcord activities, €1.167.5 billion, better than the 2014 target of approximately €1.2 billion. In the fourth quarter, in particular, the net financial position saw an improvement of over €1 billion, mainly thanks to the operating result, the positive performance of working capital and the impact of the disposal of the steelcord business;
  • Investments in research and development of 205.5 million euro, equal to 3.4% of sales, of which 174.5 million euro for activities linked to Premium products, equal to 6.9% of the segment’s sales;
  • significant steps towards the achievement of the group’s sustainability goals. In 2014 the Green Performance tyres represented about 46% of total sales for Pirelli which has reduced the specific drawing of water by 19%, energy consumption by 3% and CO2 emissions by 2%. This commitment is evidenced by the company’s inclusion in the most important sustainability indices at the world level, such as the Dow Jones Sustainability Index, where the group has lead the ATX Auto Components sector eight consecutive years; the FTSE4Good Index where Pirelli earned a score of 100/100 and the Carbon Disclosure Leadership Index, where it beat all competitors.