COMPANY PROFILE

PREMIUM,
A CHOICE
OF VALUE

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Premium Strategy evolution, at the basis of our industrial success


Unique positioning in the industry, consolidated partnerships with Top Premium Car Makers, budget entirely allocated to R&D in the Premium segment and responsible manufacturing.

Premium Tyres

CAR

  • > 17 inches;
  • High technological content;
  • High driving performance, comfort and safety.

MOTO

  • Radial Tyres;
  • Products for specific applications, e.g. Custom Touring, Off-Road and Sport Touring X-Ply, with a speed index ≥H.

Premium "Engine"

The engine of growth in the Tyre market, approximately three times the non-Premium,
the Premium segment has always been ingrained in our DNA.

In steady and on-going increment the incidence of Premium cars over the total number of vehicles in use.
Approximately 60% of Premium car sales are concentrated in Europe and
Nafta countries, while the Asia Pacific Region is strongly increasing.

2013

˜9 % PREMIUM
VEHICLES

(weight on car parc)
>

2017

˜10 % PREMIUM
VEHICLES

(weight on car parc)

Premium innovation

To Pirelli, "Premium" means state-of-the-art technology matched with product excellence.
Pirelli Research & Development can count on:

  • over 40 years of experience in the Premium segment;
  • a global centre in Milan and 10 regional centres, 1400 engineers, besides numerous open innovation projects with research centres of Universities and Car Makers;
  • a budget entirely allocated to R&D in the Premium segment amounting to 7% of the sales in such segment;
  • global Partnerships with the most prestigious Car Makers to meet the growing demand for performance, safety and product customisation, key to develop the Replacement market.

R&D INNOVATION LOOP

LegislationExploitation of opportunities
coming from new regulations
(Winter, Label, Aof)
Replacement marketStronger antennas on
dealers and final costumers
needs
SuppliersJDA with strategic suppliers
wolrdwide on innovative
technologies
Universitiesmedium-term partneship
for strategic projects
OE costumersOn-going partnerships with
the most technically
advanced Car manufacturers

Product definition
development

Innovation

Pirelli
R&D

Original Equipment, Tailor-Made Excellence

After more than 40 years of co-operation with Top Prestige and Premium Car Makers, we can boast the widest product portfolio in the market, with over 400 homologated and marked Top-of-the-Range Tyres.

OE: a Tyre is Forever

Through a stringent homologation process, the major Car Manufacturers choose the Tyres that better meet the performance and safety requirements of each vehicle.

The connection between a Tyre and a vehicle does not end with the Original Equipment fitted on the car: using homologated Tyres marked by Car Makers to replace the original ones allows high performance and safety standards to be kept.

The homologation process

The homologation process can last up to 36 months. It starts with studying the performance of a new vehicle: driving performance, safety and comfort requirements affect the choice of Tyre.

During the Tyre design stage, Pirelli Research & Development department and Car Makers' engineers work in close co-operation to device the ideal solution.

Testing is the last phase of the homologation process: the Car Maker certifies that the perfect interaction between the Tyre and the vehicle has been achieved.

1. Study

3 months THE TIME DEVOTED TO DESIGNING ON PAPER THE CHARACTERISTICS THAT A PARTICULAR TYRE SHOULD HAVE

4 rangesTHE RANGE OF PIRELLI ORIGINAL EQUIPMENT TYRES: P ZERO, CINTURATO, SCORPION, AND WINTER

2. Test

3 YEARSTHE NUMBER OF YEARS IT TAKES TO CREATE AN APPROVED TYRE, FROM DESIGN TO PRODUCTION

AROUND 20OUTDOOR PERFORMANCES EVALUATED

AROUND 15INDOOR PERFORMANCES EVALUATED

3. Make

2-6 MONTHSTHE NUMBER OF MONTHS IT TAKES TO MANUFACTURE A STANDARD TYRE

36THE NUMBER OF CAR BRANDS WITH PIRELLI APPROVED TYRES

1300THE NUMBER OF PIRELLI TYRE APPROVALS

Premium Growth Strategy

Our growth strategy in the Business segments with the highest value continues

Premium Incidence on Car Business Revenues

2011

46%

>

2013

56%

>

2016

60%

Premium value driver

3 below are the major levers for value creation in the Premium segment:

  1. OEM pull through: exploitation of the Original Equipment channel to increase sales of Replacements;
  2. More focus on the consumer through a retail network integration program and targeted marketing actions;
  3. Strengthening of sales activities in the most relevant areas, with an expansion of our retail network to approximately 9,500 units in 2016, of which 6,000 added by the end of 2013, with a sales target of 50% in the Premium segment.

CAR TYRES: RELENTLESS PUSH TOWARDS PREMIUM

Premium Distribution

Sophisticated geomarketing tools allow us to know exactly the breakdown and geographic distribution of Premium vehicles in use.

Our strategy envisages the optimisation of our distribution channels with the aim of ensuring our Premium Clients the best service level through a more pervasive geographic reach and a higher engagement.

  • frankfurt, germany

  • wuhan, china

  • moscow, russia

Geomarketing Model

RETAIL COVERAGE
AND MANAGEMENT

DIGITAL TRADE
ENGAGEMENT

DIGITAL CONSUMER
ENGAGEMENT