Economic Dimension
Group companies are committed to contributing to the economic well-being and growth of the community in which they operate by providing efficient and technologically advanced services (article 5 of the Ethical Code - Community)
Added value
Added value means the wealth created over a given reporting period, calculated as the difference between the revenues generated and the external costs sustained in the period.
The distribution of added value among the stakeholders enables the expression, in monetary terms, of the existing relations between Pirelli and the major stakeholders, thus shifting attention to the socio-economic system in which the Group operates (as shown in the diagram below).
The added value created by Pirelli & C. Group in 2007, 2006 and 2005 was shared out as follows:
|
ADDED VALUE (thousands of euro) |
||||||
|
2007 |
2006* |
2005 |
||||
|
GROSS OVERALL ADDED VALUE |
1,871,969 |
1,996,516 |
1,836,320 |
|||
|
Payments to personnel |
(1,156,170) |
61.8% |
(1,075,819) |
53.9% |
(1,029,880) |
56.10% |
|
Payments to Public Administration |
(133,503) |
7.1% |
(127,849) |
6.4% |
(128,484) |
7% |
|
Payments of credit capital |
(36,288) |
1.9% |
(126,976) |
6.4% |
(90,672) |
4.90% |
|
Payments of venture capital |
(169,503) |
9.1% |
(78,299) |
3.9% |
(149,492) |
8.10% |
|
Payments to the company |
(368,132) |
19.7% |
(579,535) |
29.0% |
(429,361) |
23.40% |
|
Outside donations |
(8,373) |
0.4% |
(8,038) |
0.4% |
(8,431) |
0.50% |
|
* The gross overall added value for 2006 does not take into account non-recurring operations recorded in the period. Specifically, the disposal to third parties of 38.9% of Pirelli Tyre SpA and the entire holding in Capitalia (631 million euro), the costs sustained for the IPO (13 million euro) and the depreciation of the affiliate company Olimpia (2,110 million euro).). |
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The table below shows the contributions and donations made by Pirelli & C. Group in the three year period 2007, 2006 and 2005, broken down by category:
|
AREA OF INTERVENTION (thousands of euro) |
|||
|
2007 |
2006 |
2005 |
|
|
Education |
1,035 |
1,246 |
799 |
|
Culture |
5,774 |
5,188 |
5,533 |
|
Sport |
287 |
244 |
450 |
|
Research |
483 |
339 |
290 |
|
Solidarity |
656 |
739 |
914 |
|
Other |
138 |
282 |
445 |
|
TOTAL |
8,373 |
8,038 |
8,431 |
Please see the “Social dimension” section for a detailed description of the principal actions associated with these contributions and donations.
Finally, the companies in the Group “do not contribute or confer advantages or other benefits upon political parties and trade union organisations or their representatives and candidates, without prejudice to compliance with the relevant prevailing legislation.” (from article 5 of the Ethical Code - Community).