What distinguishes Pirelli in the Tyre Industry is:
- A growing focus on the Premium Segment - 50% of the Car Revenues in 2012, 60% its expected weight in 2015 – this is the Business Segment least affected by the economic slowdown;
- A strong presence in the Replacement channel - 76% 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 (34% in Europe, 12% in Nafta) and Rapid Development Economies – 4% in Russia, 34% in South America, 9% in Middle East Africa, 7% in Asia Pacific;
- A high manufacturing activity in countries with a competitive cost basis - 78% of the overall production in 2012.
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 2012 – and is amongst the least affected by the economic trends.
Premium Player in the Consumer Business
In the Consumer Business - Car and Moto account for 73% of the Tyre revenues – Pirelli aims at becoming Global Premium Leader in 2015. Pirelli already has a share of 14% of the European Premium Market, the largest in the world – approximately 50% of the Global Premium Market, due to:
- Cutting-edge technology, resulting from its high investments in R&D – over 7% of the Premium revenues, the highest percentage 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.
Its presence in those markets where the Premium Segment is bound to grow at higher rates – at least three times the overall market – together with a more extensive range of products, and targeted actions on Brand and Distribution will strengthen Pirelli positioning in the Premium segment, that in 2015 will account for 60% of the Car revenues and 81% of the EBIT produced by the Car Business Unit.
Regional Player in the Industrial Business
Different positioning in the Industrial Business - Truck plus Agro, 27% of Tyre revenues. Through its focus on emerging markets and its production capacity concentrated in countries with a competitive cost basis - 97% of the overall production in 2012 - Pirelli enjoys a unique positioning in the Industry, as shown by its high profitability: EBIT margin of 11.1% in 2012, the highest in the Industry.
Pirelli is the Leader in South America, where it also operates the Agro Business, as well as in Middle East Africa. In Europe, it enjoys a prominent position, and in China and Asia Pacific, it aims at expanding its market share in the Radial Truck Business.