Pirelli’s corporate governance and sustainability are two assets that guide and supplement the company’s achievement of the objectives of its industrial plan and the creation of value. This was reiterated by the chairman of Pirelli & C., Marco Tronchetti Provera, when the industrial plan was presented. From 2011 to 2013, that is, for the duration of the industrial plan, Pirelli will, specifically, start a new plan of actions for environmental, social and economic sustainability. Pirelli will increasingly use low environmental impact raw materials in its production systems, and processes that will lead to a reduction of over 35% in water consumption and 15% in energy consumption by 2015, with CO2 emissions 15% lower than in 2009. To support the definition and control part of the group’s energy policy, the new technology centre in Settimo Torinese - the most “eco-efficient” tyre factory in the world, will be in full operation from 2011. It will also act as a model for the other group production facilities.

For the third time in a row, Pirelli received awards thanks to the readers of SportAuto, the authoritative German car magazine. In response to the research SportAuto conducted amongst its readers, Pirelli was particularly appreciated in the ‘sportsmanship’ category, thanks to the score it obtained in the ‘stability on curves’, ‘safety at high speed’ and ‘excellent braking performance’ categories. Pirelli also won in the ‘emotionality’ category, thanks to the readers’ appreciation expressed in the ‘I like the brand’ ad ‘sport look’ areas. ‘

Pirelli celebrated its 100 year presence in Argentina with an international press conference in Merlo, in the province of Buenos Aires, in the presence of Cristina Fernández de Kirchner, President of Argentina and Pirelli chairman Marco Tronchetti Provera, as well as the managing director of Pirelli Tyre, Francesco Gori, the Ceo of Pirelli Pneus America Latina, Guillermo Kelly, and the chairman of Pirelli Neumáticos Argentina, Franco Livini. In Merlo, Pirelli presented its development plans to 2013, which aim to increase the group’s production capacity from 5 to over 6 million pieces per year, focussed on the Suv and light commercial vehicle segments. By the end of 2013, the company will have invested 100 million dollars in Argentina. The Merlo facility, in operation since 1951, represents 10% of the total production of the group in Latin America, where Pirelli is present with 7 plants, including 5 in Brazil and 1 in Venezuela, and, with the Argentine plant, they generate 36% of the total turnover of Pirelli Tyre.

Pirelli is ‘top automotive employer 2010/2011’ in Germany. So says the CFR, the international research institute that provides comparative analysis of hr management and company best practice. Business culture, work-life balance, pay, training, development, career opportunities and innovation management are the aspects examined this year in the CFR study, which praised 25 companies in the automotive sector, from major automobile manufacturers to small suppliers of spare parts. Now in its fourth edition, the study was carried out in collaboration with consultants at Kearney, the CAR (center for automotive research), the university of Duisburg-Essen and the German automobile industry association.

In recent months, work has started in the town of Belladère, Haiti, on the rebuilding of the” Ecole Congreganiste Marie Jeanne, filles de Marie”, one of the three schools severely damaged by the earthquake on 12 january that will be rebuilt thanks to the ‘My time for Haiti’ campaign. The specifications envisage reconstruction of the roof and toilets, installation of the service stairs and new windows and doors.

Ten of the largest cement companies in the world, members of the world business council for sustainable development (WBCSD) met in Warsaw on 13 to 15 September to together identify the concrete action to be taken to ensure the ‘sustainable’ development of their sector. Pirelli was invited to the cement sustainability initiative as an example of best practice. Can Alatas, Health, Safety and Environment chief at Pirelli Turkey, firstly presented the Pirelli approach to the sustainable management of its business and the recognition it has obtained, then considered the specific topic of his speech: the practices used by Pirelli to constantly improve Workplace Health & Safety. These practices, based on a study carried out by the Cement Sustainability Initiative, were, in fact, found to be the best of those adopted by the Autoparts & Tyres sector participants in the study.

Pirelli has inaugurated its “Fabbrica dei Campioni (Factory of Champions)”, a plant in which the group will produce the tyres designed for all the Formula One teams in the three year period 2011-2013 in its izmit facility in Turkey. The facility, which celebrates its Fiftieth year of business this year, has housed the production line for Motorsport tyres since 2007, and will now become the heart of Pirelli’s business for formula one, in synergy with the milan research and development centre. Over the last 10 years the group has invested 140 million euros in the Izmit facility, which, with its 8 million pieces per year for motorsport, automobile and trucks , is the Pirelli factory that produces the most tyres, and will invest a further 30 million euros in 2011, to support the strategy of expansion in Turkey and the neighbouring emerging markets.

At ‘BMWRIDERS’ 2010 held in early September in formigal, in spain, in the heart of the pyrenees, metzeler organised “Safety and Experience”, a round table on the subject of safety, attended by representatives of the spanish ministry of transport, ANESDOR (Asociación Nacional De Empresas del Sector de Dos Ruedas) and the Guardia Civil.

Sunday 12 September 2010 saw the inauguration of ‘Workers’ exhibition, a photographic history of Pirelli in Settimo Torinese, through the portrayal of the people who, with their work, write the history of the factory day by day. Men and women, pensioners and new recruits, manual workers and engineers. Carlo Furgeri Gilbert, who took the seventy shots on show in la Giardinera, in the centre of Settimo Torinese, gives substance to the emotions of “doing” – making the pride and awareness of industrial production tangible, with the intelligent physicality of the face, arms, glances.

For the fourth consecutive year, Pirelli is the world leader in Sustainability in the Autoparts and Tyres, in the dow jones world and europe sustainability indices. And for the second year running Pirelli is the only italian company to be world Leader in its sector.

‘Exemplary’ and with no weaknesses’: Cinturato P7 gets through the summer ecological tests organised in germany by specialist publication ‘Autobild’ to assess the capacity of this type of product to combine energy saving and safety in even the wettest conditions. Compared with the other four tyres in the 205/55R16 V size category, Pirelli’s ‘green’ tyre for cars with medium and large engines obtained the highest score, and did particularly well in its performance on wet surfaces – handling, braking distance and control of aquaplaning.

Pirelli has joined the “Healthy Workplaces” campaign of the European Agency for Safety and Health at Work (EU-OHSA). The new 2010-11 campaign, launched on 28 April 2010 by László Andor , European Commissioner for Employment, Social Affairs and Inclusion, will focus on the subject of “Safe maintenance”. The aim is to reduce the number of accidents in the workplace linked to maintenance practices.

The second edition of Intercampus Romania, the social project launched in July 2008 by FC Internazionale Milano, Pirelli and Comunità Nuova ended in Slatina with the “Milioni di sorrisi (Millions of smiles)” tournament. For three days over 250 children participated in the football matches played on pitch 2 of the 1st May Stadium, and in the recreational activities organised at the same time. For the youngest children, guaranteed fun, with karaoke competitions, puppet theatre, entertainers, clowns and face painting.

Making the neuromotory paediatric department of Romania’s Slatina Hospital more efficient and comfortable. This is the aim of “Team for kids”, the three days on the ward spent by twenty one Pirelli managers from the ex-Steelcord BU, now Pirelli Wire Technologies, involved in an intense programme of restoration and restructuring initiatives for both inpatients and outpatients, children between 1 and 10 years of age. From 7 to 9 July, the team assembled new cupboards, painted walls and distributed toys, making a visible contribution to the rebirth of a ward previously in very poor condition.

Pirelli has won the 'Country Award 2010' for Italy, awarded in London by the authoritative IR Magazine Europe to the best companies and professionals in investor relations. The prize is based on the opinions of over 700 national and international investors and analysts The other Italian companies shortlisted for the award were Azimut Holding, Fiat Group and Intesa San Paolo.

Pirelli Ambiente, the Pirelli group company working in the renewal energy sources field, has signed a licensing agreement with Bosco International, which promotes industrial processes and systems for a sustainable environment, which will allow the Australian company to use Pirelli patents to produce fuel from quality waste (CDR-Q). The Pirelli technology will initially be used in the Latrobe area, in the state of Victoria, as part of the “Towards Zero Waste Policy” programme introduced by the state governor to contain waste, with the aim of coveting the 600 thousand tonnes of solid urban waste produced by the city of Melbourne every year into fuel from quality waste.

“Safe&Go”, the summer safety campaign starts. Pirelli, in collaboration with “Autostrade per l”Italia” and “Telepass”, launched its new summer road safety campaign, with the patronage of the Italian Ministry of Infrastructure and Transport. The prevention campaign is addressed to all drivers, and its aim is to make Italians’ holidays safer. From mid-June to the end of August, drivers can meet Pirelli technicians for a free tyre check in one of the ten mobile workshops distributed in service areas that the Società Autostrade will have made available. The check-up will end with the issue of a test certificate indicating the health status of the tyre, and the provision of information on correct tyre maintenance.

“Business sustainability and responsible investments to create long term value” is the title of a seminar organised by the Academy-London Exchange Group in which Pirelli took part. Group chairman Marco Tronchetti Provera illustrated the results obtained so far in terms of sustainability and the aims established in the 2009-2011 plan to industry rating experts, investors and financial analysts assembled at the headquarters of Borsa Italiana: growth of the proportion of turnover attributable to “green” components up to 25% from the 20% achieved in 2008 and 2009; the current year’s target is 33%, and 40% for 2011. These targets were pursued due in part to new “green performance” products like the Cinturato P7 and the Scorpion Verde. He reminded his audience that, for Pirelli, sustainability is not just respecting the environment, but a new management model that is an integral part of the growth strategy for the Group: this is the best way of managing the economic, social and environmental impacts related to processes, products and services inspired by the principles of the United Nations’ Global Compact, respecting shared policy values, according to the most advanced management systems.

Pirelli the best brand in the replacement tyre market in China. This was established by the “China Automobile Aftermarket Summit”, the forum held at the end of April in Peking, promoted by prestigious magazine “Motor Trend”. Twenty seven tyre brands were candidates for the prize, appraised by experts from the sector involved in the meeting, who declared Pirelli “Recommended Brand” per il 2010.

Pirelli received the “World Excellence Award” from the Ford Motor Company for its excellent quality, costs and delivery. The award ceremony was held in Dearborn, Michigan. The leading figure in this award was the Guacara tyre plant in Venezuela, which produces Pirelli tyres for Ford. The first quarter was decisively better for Pirelli & C SpA. This was confirmed by the results submitted to the board of directors, who also approved the planned separation from Pirelli Re. The good results achieved by Pirelli Tyre has improved the revenue target for 2010, now predicted to be between 4.9 and 5 billion euros, instead of the 4.7. 4.8 previously estimated, with EBIT of at least 6.5%.
 

The payment date is 27 May 2010 (ex-dividend on 24 May 2010). Pirelli & C. SpA's annual financial report, including the company's financial statements and the consolidated financial statements at 31 December 2009, as well as the further documentation provided for by the current regulations, is available to the public at www.pirelli.com, at the company headquarters in Milan (Viale Piero e Alberto Pirelli 25) and at the Borsa Italiana SpA (Italian stock exchange).

American motorists prefer Pirelli tyres for their sport cars. According to the research promoted by the "Original Equipment Tire Satisfaction Index Study' of JD Power & Associates, which every year assesses the general level of satisfaction among motorists based on four parameters: wear and tear, appearance, traction/handling and driving. In 2010, Pirelli took first place and won the JD Power & Associates Award, for the "Performance Sport" category, recognized by American consumers as an important indicator of quality and performance.

For Pirelli, 2010 starts off with recognition from Japan. Autobacs, historic Japanese retailer of automobile spare parts and accessories, with offices all over the world, awarded Pirelli the title of "best tyre supplier". Pirelli excelled in deploying three components: a significant contribution to the 2009 sales, the success of P4 Four Season and effective team work between the Pirelli China and Pirelli Japan headquarters. The prize giving awards ceremony took place on 7 January 2010 in Tokyo.

The Group's commitment in the Sustainability sector continues. Pirelli & C. entered the ethical finance index ECPI Ethical Index EMU, the classification by E. Capital Partners (ECPI), the leader in socially responsible investments (SRI). The index includes the 150 companies with greatest capitalization of the EMU (Economic and Monetary Union) market, found to be leaders as a result of the screening conducted in line with ESG (Environmental, Social, Governance) parameters for the assessment of environmental risk, social impact and the Corporate Governance structure.
(http://www.borsaitaliana.it/speciali/finanza-etica/case-history/casehistory/ecpi.htm)

Pirelli Broadband Solutions took part in the 14th edition of Cairo ICT, the main fair event of the Middle East and Northern Africa on telecommunications and Information Technology. The stand was honoured by the visit of Minister Tarek Kamel, the Egyptian Minister of Communications and Information Technology, who wished that the "dynamic players like Pirelli Broadband Solutions would actively participate in the great opportunities of infrastructure development and telecommunication services that Egypt offers". There was great interest in the novelty of PBS, from the USB key, which gives access to the Internet while mobile, and the set top box which unites the capacity of a decoder (satellite, digital terrestrial, IPTV and Internet TV) to that of home multimedia centres for the management of personal contents through the software platform Pirelli EpicentroTM.

Pirelli is also the top tyre brand of the year in Nigeria. The awards ceremony of
Nigeria Auto Media Awards, the competition organized by the specialized press for the car and transport sector, took place in Lagos. For the tyre category, the title ‘Tyre Brand of the Year 2009' was won by Pirelli, present in Nigeria through its distributor The Infinity Group which, with its sales and after sales network, contributed to the achievement of the award.

Pirelli Neumáticos España, S.A. can, from today, count on a new Logistics Hub at the Manresa factory (Spain). The hub, functional since the start of the year, covers a total of 27,000 square metres and includes a new warehouse of 2,800 square metres and 19 loading and unloading bays. The site offers services to all Pirelli's clients in Spain and Portugal for all the divisions (car, truck and motorcycle), and is capable of moving over 250 tons per day.

The 2010 edition of Daytona Prototype Rolex 24, the most prestigious endurance race of the Grand-Am circuit, witnessed the victory of the innovative P Zero Racing, slick tyres without highly aromatic oils. The new slicks, which were tested at the Daytona circuit a month before the race, produced consistency, durability and speed, to the full satisfaction of all the teams which, for the third consecutive year, were fitted exclusively with Pirelli. The competition, marked by heavy rain and wind alternating with dry spells and less cold temperatures, also witnessed the new P Zero Racing rain tyres in action, which took on and passed the test of the 48th Daytona. "We are incredibly proud of our organization and the products we design, develop and manufacture", said Tom Gravalos, Vice-president of Marketing, Motorsports and Original Equipment sales at Pirelli Tire North America. The winner of the Daytona Prototype Rolex 24 was car number 9, the Action Express Porsche Riley, driven by Jaoa Barbosa, Terry Borcheller, Ryan Dalziel and Mike Rockenfeller. They covered 755 laps at an average of 111,930 mph, and put in a fastest lap of 1:41.722 seconds. A total of 22,500 laps and 80,100 miles, for a Daytona exclusively on Pirelli tyres.

Pirelli chose Barcelona as the location to launch Scorpion Verde, the first ecological high performance tyre for SUVs and Crossovers. A result of the company strategy of ‘Green Performance', Scorpion Verde ensures an overall reduction in fuel consumption of up to 3.9% on urban roads and 3.4% on mixed routes (urban and extra-urban), reduced acoustic emissions by a decibel (equal to 30% overall, in other words it's like removing an entire lane of a three-lane motorway) and uses 10% less raw materials. Among the latest generation SUVs and Crossovers, Volkswagen's Touareg has already chosen Scorpion Verde in first equipment.

The Board of Directors of Pirelli & C. SpA met today and examined and approved the draft financial statement for the year 2009. The restructuring, already started in 2008 and continued in 2009 to counteract the effects of the international crisis, permitted the Pirelli group to conclude the year with better results compared to the 2009 targets, moreover already revised at the upturn last November, on the occasion of the announcement of the third quarter results.
Note the following in reference to the group targets:
Cinturato P7 and P6 are leaders in Green Performance, as confirmed by the tests carried out by ADAC, the most important and prestigious automobile club in Germany and Europe, with over 19 million members.
The test results, which have also been distributed through the automobile clubs of Austria and Switzerland (TCS and OAMTC), confirm that Pirelli Cinturato P7 is the best tyre that marries a high level of performance, in both wet and dry conditions, with low rolling resistance, greater mileage and reduced sound emission. There were similar results for the Cinturato P6, which not only beat all tyres in its tests, but it is also – according to ADAC – the only tyre to be able to take its place in the Green Performance area.