Information systems

The Information Systems of the Pirelli Group are operated and coordinated through Pirelli Sistemi Informativi S.r.l., a company formed on July 11, 2007 and operational since October 1, 2007, the effective date of the spin-off of activities previously included in Share Service Center S.c.r.l., a company subsequently sold to Telecom Italia.

The main activities carried out during the year in the individual areas of operation are described below:

Architectures, Infrastructures and Shared Group Services

The work of consolidating the SAP systems for all the units of the Group in the Central Data Center in Milan was completed. The result was achieved by completing the consolidation of the One-client SAP systems of the Tyre business for Europe and South America. All the Group’s SAP systems are therefore now managed centrally by the Systems Competence Center of Pirelli Sistemi Informativi. The SAP environment currently being managed for the whole Group has a production database with a total of 23 Terabytes. On average, about 9,000 users connect to the system daily.

Work continued to coordinate and integrate the Group’s data transmission network on a global basis. In particular, the geographical network for connectivity between South America and Milan has been redrawn, and will be operational by the first half of 2008. The new system has made it sustainable to centralize Data Center services and will make it possible to proceed with the activity of consolidating other services (Email, Internet access, etc.) currently handled in Milan, and to make some of the new Pirelli Intranet services accessible to more users. The international geographical network has been extended by including the new offices opened or acquired (mainly in Pirelli RE) in the Group standards.

With regard to the distributed architecture (APISxp), the German unit (DGAG) recently acquired by Pirelli RE was brought to standard and integrated, bringing the number of network users (APIS/Email) to 16,500. The continuing focus on the consolidation activities of the electronic mail services has reduced the number of the Group’s exchange sites to three.

The infrastructure Help Desk service (network station management) was activated at the Craiova headquarters. The team of people responsible for distributing the service replies in English and German and is currently directing the service towards the Tyre sector in Germany, Austria, and Benelux. The service for UK Tyre and Pirelli RE Germany is being set up and is expected to become operational during the first half of 2008. AMS maintenance for the Group in the SAP environment has also been set up and the services are being distributed to all the companies in the Group. They are organized into the following SAP environments: Sales, Purchasing, Logistics, User Profiles, E-procurement, Management Control and Real Estate.

The Pirelli Internet world saw the release of local sites, except those of the Operating Units in the Far East, which will be released in the first quarter of 2008. The websites are entitled Pirelli Film, Pirelli Pzero and the new site Pirelli Ambiente.

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The home page of the Pirelli Film website.

In addition, the graphics and surfing of all the Metzeler sites have been updated. With regard to access, the Pirelli Internet sites continue to show a growing trend of user traffic, with more than 2.7 million visits to the websites in a month.

In 2007, the Pirelli website ( again came fifth in Italy in the Hallvarsson & Hallvarsson quality table.

New Pirelli web applications were released, for example in support of the Group strategy on Corporate Social Responsibility.

In the area of Administration, Finance and Control, the main activities involved the implementation of the SAP system as a result of the acquisition of Ingest in Italy and Poland by Pirelli RE, while, in the sphere of the One-supplier Tyres project, the acquisition of invoices through EDI was implemented.

In the area of Resources, with regard to the Tyre sector, SAP HR was implemented for the affiliates in Argentina, Venezuela and Egypt. Moreover, during the year, the integrated Performance Management Tool application was developed with the HR SAP system, Reporting for Corporate Social Responsibility and Equal Opportunity.

Pirelli Tyre

Activities focused on aspects of the geographical extension of the One-Client platform, the enhancement and extension of Sell-Side solutions, with the launch of the Sales Force Automation project for sales staff, and the completion of the PVT (Purchasing Value Targeting) program in Purchasing. Work also continued to consolidate the One-supplier initiative.

In the sphere of R&D, work continued on the evolution of the Product Lifecycle Management platform, while the up-grade was completed on the new version of the Business Intelligence platform and the review of the Industrial Tableau de Board.

Pirelli Real Estate

The information systems of Pirelli Real Estate were implemented to increase the functional coverage and the efficiency of the business systems of the Services Companies, to support foreign expansion (especially in Germany, now added to Poland).

In particular, the integration process was completed between the Agency and Franchising systems to manage the channeling of the real estate product towards the network of affiliates, and the physical (infrastructure and networks) and applications (SAP) integration of Ingest Italy and Ingest Poland with the Pirelli architecture was terminated. Other activities involved a procedure for managing and monitoring the Facility contracts portfolio on the SAP-Business Intelligence platform.

With regard to the Franchising business, the new Internet portal was released, based on the Pirelli framework, and integration was completed with the Agency systems for marketing the PRE residential product through the distribution channel of the affiliates network.

In Germany, the process of standardizing the IT infrastructures of the former company DGAG was completed. The new webpage was created, and a project is in progress to harmonize and consolidate the SAP system with the aim of making the corporate data and processes uniform with those of the Group and consolidating them on the Group’s central SAP systems.

Pirelli Broadband Solutions

Business support activities continued, particularly with regard to Logistics and Sales. Collaboration focused on the renewal of ISO9001 certification and the relative control measurements, reviewing the IT approach and support processes with the business. The audit was conducted in November 2007.

The collaboration environment with selected customers and suppliers was released for the publication of general documents about products, such as compiling instruction manuals, rather than producing specific manuals about products for one or more partners. This was done using the SAP cFolder product and to date about 30 external partners are involved in the possibility of document exchange.