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).

Valore Aggiunto Globale

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).).

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).