Types of Group Customers

The types of customer differ greatly from one business area to the next.

The Tyre Sector serves the following categories of customer:

  • “Original Equipment”, which includes the leading international makers of cars, motorcycles, scooters, commercial vehicles (light, medium and heavy), buses and agricultural machinery.
  • “Replacements”, which includes a total of around 15 distribution channels (for car, truck and motorcycle tyres), and whose importance differs from country to country.

In the Real Estate Sector we have:

  • “Investment & Fund Management”, whose customers consist of funds and property-owning companies in which Pirelli & C. Real Estate generally has a qualified minority shareholdings.
  • “Service companies”, whose customers include, in addition to third parties, funds and property-owning companies and non-performing loans managed by the Asset Management departments of Pirelli & C. Real Estate.
  • The “Franchising Network”, made up of Pirelli RE Agency’ s affiliate agencies distributed throughout Italy.

Customers of Pirelli Broadband Solutions may be divided into the following categories:

for Broadband Access (BBA) products

  • Added Value Retailers.
  • System Integrators.
  • Telecommunications operators.

for New-generation photonics products:

  • System integrators and/or operators.
  • Component and module manufacturers.

The companies under Pirelli & C. Ambiente have the following categories of customer:

  • Customers of the Renewable Energy sector, i.e. companies that convert urban solid waste to energy.
  • Customers of the Site Remediation sector, i.e. companies – mainly in the Group and other closely-related companies – that are interested in having assesssed, planned and managed the demolition and decontamination of buildings and/or lands.

Customers of Pirelli Ambiente Eco Technology:
They are companies that operate in public transport, goods transport, waste collection, the mining sector and in construction. Pirelli Ambiente Eco Technology also operates through partners that are licensees of its Gecam™ technology and which operate independently in Italy. In addition to receiving royalties on its licensees’ sales, the company also (indirectly) performs the technical and marketing activities associated with the product.

Suddivisione delle vendite per area geografica

Group Policies

Customer orientation – a central element in the Values and Ethical Code of the Group – presumes a constant and ongoing commitment from Pirelli in terms of:

  • Comprehension of the market context in which the Group operates.
  • Consideration of the impact of the Group’s actions and behaviour on the customer.
  • Exploiting every opportunity in doing business in order to satisfy the customer’s needs.
  • These principles are made explicit in articles 2 and 4 of the Pirelli Ethical Code. The relevant extracts are given below. “The Company:
  • “pursues market excellence and competitiveness, offering customers a quality of service that effectively meets their requirements;” (article 2 of the Ethical Code - Aims and Values).
  • “bases the excellence of the Group’s products and services on customer service and the readiness to meet customer needs. The aim is to offer immediate, thoroughgoing and competent responses, tailored to the needs of customers, and in keeping with the spirit of legality, courtesy and co-operation” (article 4 of the Ethical Code - Customers).
  • The Company’s commitments to the customer described above are similarly made explicit in the General Conditions of Supply applied by the Group companies.

Focus ON Pirelli Tyre

The wide variety of Group customers entails many different methods for dialogue and interaction between the customers and the various businesses. As in 2006, we have decided to focus again in 2007 on relations between the Tyre Sector and its customers, also to enable a year on year comparison of performance.

Dialogue and interaction

  • In addition to the daily contact with the sales organisation operating at local level, customer relations are handled by the Sales and Marketing departments, via the Contact Centres, which monitor the performance of the interactions between the company and the market by means of the following:
  • KPI Contact Centre monthly reporting: quantitative measurement of the main Customer Service parameters to aid the analysis of the levels of service offered.
  • WMT (Workflow Management Tool): an application that enables the mapping of all the requests originating from the market to obtain both quantitative (number of requests by subject area and requestor, response times, etc.) and qualitative (response method) analysis designed to improve the service and enhance Customer Care.
  • Customer Satisfaction Surveys, conducted periodically in a variety of ways including interviews with native language operators, anonymous surveys, and web based questionnaires that identify levels of satisfaction on a scale of one to five.

The table below shows the results of the surveys for the last 4 years:

LEVEL OF SATISFACTION

2007

2006

2005

2004

No. countries involved

11

13

11

12

Overall satisfaction level (1-5)

4,00

3,96

3,88

3,84

  • Customers can also contact the company through the Pirelli Tyre website.

Attention to Quality: certifications and recognition

  • The attention given to quality by Pirelli Tyre, both as producer and as supplier, is demonstrated by the certifications it has obtained, which conform to international standards and deal with aspects of both the processes and the products and services. In particular:
  • ISO 9001
    The Group has had a Quality Management System since 1970 and since then has gradually introduced it in all its plants. From 1993 onwards, Pirelli obtained certification of its quality system under the ISO 9001 standard. Currently 100% of the factories are certified to the most recent edition of this standard.
  • ISO/TS 16949
    To meet the requirements of the car makers, from 1999 onwards the Group obtained certification for its quality management system under the ISO/TS 16949 standard, and has since maintained its certification under the standard in force. All factories that supply the car makers have obtained this certification.
  • ISO/IEC 17025
    In 1993, the Materials and Products and Outdoor Experimentation Lab of the Pirelli Group introduced a quality management system that is accredited under the ISO/IEC 17025 standard. This quality management system is maintained in conformance with the standard in force.

Pirelli’s car tyres are an excellent example of the company’s focus on quality, which is confirmed by Pirelli’s supremacy in a large number of product tests, and also ensured by the company’s close links with very prestigious partners (famous car makers, specialist magazines, driving schools etc.) for product development and experimentation. The table shown below gives the results for 2007 of various different product tests on summer tyres, conducted by the leading specialist magazines:

PRODUCT TESTS ON SUMMER TYRES

Tested pattern

Size

Test Vehicle

Final Result

Comment

Magazine

Issue

Pirelli P3000E

155/70R13 T

VW Lupo

Very
recommendable

Very well balanced tyre with optimal notes on wet ground.

Mar-07

Pirelli P7

205/55R16 V

Peugeot 407

TEST WINNER

Very well balanced tyre with best note in test on wet track. Low tread wear.

Pirelli P Zero Nero

205/45R16 W

VW Polo GTI

Exemplary

Very convincing all-rounder with high steering precision and dynamic driving behaviour on wet and dry ground. Short braking distance on wet track.

Apr-07

Pirelli P7

225/55R16 W

Mercedes E Class

TEST WINNER

Precise and harmonic reactions make it the best in handling in wet conditions. The best in test in braking on wet track. In the dry optimal in handling and slalom and very good in braking: the best in test. Very safe and easy to drive.

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Feb-07

Pirelli Scorpion Zero Asimmetrico

235/60R18 V

Volvo XC90

TEST WINNER

The best in test in off-road conditions with optimal braking performance. By far the best in test also by dry track due to its traction and driving safety. Shortest braking distance and best handling on wet ground.

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Apr-07

Pirelli P Zero

245/40R18 Y

Audi TT 2.0

TEST WINNER

Very high performance and optimal driving behaviour by wet conditions: best in test. On dry track by far the best: the fastest in slalom and handling, the shortest braking distance; safe and easy to drive.

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May-07

Pirelli P Zero Nero

245/30R20 Y

Audi TT 2.0

Exemplary

Very good performance in every exercise on wet ground, especially in braking. Very good driving behaviour also in dry conditions.

Apr-07

Pirelli Camper L6

215/70R15 R CP

Fiat Ducato

Very good

Absolutely the best in test by wet conditions with very safe driving behaviour. Excellent load capacity.

May-07

Pirelli P Zero

235/35R19 Y

BMW 335i

TEST WINNER

Excellent grip level and optimal driving behaviour on dry ground. Very well balanced and short braking distance in wet conditions.

May-07

Pirelli Tyre’s commitment to customer safety

The Group has always pursued product innovation to improve quality and safety for the end consumer. To achieve this, Pirelli Tyre makes use of its close cooperative links with the leading car makers in a market segment that is particularly scrupulous and demanding: the Ultra High Performance segment, an area where Pirelli is leader brand. Customer safety, for example, forms part of the DNA of the following products:

  • The New Pirelli Cinturato, whose innovation integrates driver safety and the reduction of environmental impacts. The New Cinturato is discussed in detail in the section “Environmental Dimension”, to which the reader is referred for further information;
  • K-PRESSURE™, an innovative safety device capable of detecting whether the pressure of the tyre is correct or below the alert threshold and to warn the driver in real time through an onboard alarm;
  • Self-supporting or Run Flat tyres, which provide greater vehicle control in emergency conditions and allow continued safe driving even during a rapid loss of inflation pressure. Mobility is guaranteed by the “self supporting” construction process, achieved through the introduction of elastomeric reinforcements in the sidewalls, thus making the structure self supporting. Support in other words, in the absence of pressure, for the vertical loads and the horizontal and transversal stresses from the vehicle allowing the driver to reach the nearest service centre in safety;
  • Specialist tyres for new types of vehicles and new uses, for example Winter UHP tyres for ultra-high performance supercars for mixed road/track use;
  • New concept tyres like the new P Zero launched in February 2007 that, thanks to its special tread compound, offers the extreme performance of a warm tyre from a “cold” start. This provides immediate driving enjoyment and raises the safety standards for limit, straight-line and corner braking, in wet and dry conditions, at all speeds achievable on the road and track;
  • SWS™, the first self-inflating tyre, now also available for SUVs;
  • Cyber™Tyre System, a tyre “memory”, through which a car’s onboard computer communicates information about the operational condition of the cover in real time;
  • Cyber™Wheel System, to use the rim as a sensor to detect physical sizes and transmit them to the car. Assessing the deformation caused by the vehicle’s movement, it is able to evaluate (also thanks to special algorithms developed by Pirelli in collaboration with the Polytechnic of Milan) so-called hub forces and provide real-time information to the dynamic control systems that maintain the stability of the vehicle.
PZero_2007

P ZERO Launched in February 2007, thanks to its special tread compound, offers the extreme performance of a warm tyre from a “cold” start

Finally, we would like to mention Pirelli’s commitment to increasing the attention paid by drivers to tyres - and therefore to their safety, through specific institutional campaigns. Of particular note is Pirelli’s role within the ETRMA, whose Chairman is the CEO and Managing Director of Pirelli Tyre, who was responsible for the signing of the European Road Safety Charter .