What distinguishes Pirelli in the Tyre Industry is:
- A growing focus on the Premium Segment - 56% of the Car Revenues in 2013, 60% its expected weight in 2016 – this is the Business Segment least affected by the economic slowdown;
- A strong presence in the Replacement channel - 75% of revenues as against the Industry average of 70% - less exposed to the dynamics of the Automotive Industry;
- A balanced distribution of revenues amongst Mature Markets (33% in Europe, 11% in Nafta) and Rapid Development Economies – 4% in Russia, 36% in South America, 8% in Middle East Africa, 8% in Asia Pacific;
- A high manufacturing activity in countries with a competitive cost basis - 100% of production in the Industrial Business and 78% of the Consumer business in 2013.
Due to its Business Profile, Pirelli ranks amongst the most profitable Companies in the Tyre Industry - the EBIT margin in the Tyre Business was 13.4% in 2013 – and is amongst the least affected by the economic trends.
Premium Player in the Consumer Business
Pirelli is a leader in the Premium segment with a market share of approximately 50% in the Prestige OE market and approximately 20% in Premium OE. This is due to:
- Cutting-edge technology, resulting from its high investments in R&D –7.4% of the Premium revenues, among the highest in the Industry;
- Long-lasting partnerships with the major Car Makers – from Ferrari to Maserati, from Lamborghini to Bentley, from Audi to BMW and Mercedes;
- Strong, world famous Brand, synonymous with top of range, high performance, Formula 1.
An acceleration of the Premium strategy, leveraging on OE pull-through, consumer engagement and developing the retail distribution network, will bring the total weight of Premium revenues on total car revenues to 60% in 2016 up from 56% in 2013.
Regional Player in the Industrial Business
In the Truck market, Pirelli is by far the leader in South America and North Africa and ranks among the major players in the Middle East.
A selective geographic positioning, the offering of technologically advanced products with the new 01 Series and 100% low-cost production capacity allow Pirelli Industrial Business to achieve a profitability level among the highest in the industry, with an Ebit margin greater than 13% in 2013.