- Text size: A A A
- Contrast: less contrast more contrast
- Contacts
- Italiano
Growth Drivers
On February 11, 2009 Pirelli Top Management presented to the Financial Community the strategic guidelines for 2009-2011.Through the actions indicated in the business plan, the Group will therefore be able to not only face the current economic scenario but also to take advantage of new growth and development opportunities.
Here below the actions and growth drivers for the different Group businesses
Tyre >
Pirelli Tyre objective for 2009-2011 is profitability improvement (8%/8.5% the ebit margin expected by 2011 vs. 6.1% in 2008) and cash generation (250 €/mln in 2010-2011), using the competitive advantage of a manufacturing presence in emerging markets which present greater growth rates and lower industrial costs.
Actions on costs
Actions on revenues
Actions on costs
- continuation of the plan already begun in 2008, with the goal of saving over 300 million euros in the three-year period. This will be through:
- rationalization of manufacturing structures and staff in Europe;
- renegotiation of raw materials purchasing agreements;
- savings from lower energy costs and on logistics;
- growth of manufacturing capacity in emerging markets, where the greatest demand and the lowest industrial costs (logistics, energy, cost of labour) are located.
Actions on revenues
- Skill in responding to demand in high growth markets, taking advantage of the competitive leverage of local presence and brand strength;
- Development and launch of new products: premium, green performance and Cyber Tyre
R&D and technology >
- evolution of MIRS, Pirelli's robotized system for manufacturing tyres;
- new ecological materials (e.g. silica derived from rice husk) with benefits both on the environmental front and on the cost front. Development of "green performance" products is foreseen for the various segments, strengthening in particular the leadership Pirelli already holds in the Premium segment;
- technological partnerships with other actors in the sector
- development of the technological and manufacturing facility in Settimo Torinese (Turin), factory for production of the company's most technologically advanced and efficient 'green' tyres.
Pirelli Eco Technology >
Pirelli Eco Technology aims to achieve in the next 3/5 years a leadership position in the field of technology for control of diesel vehicle emissions with the use of particulate filters. This goal will be pursued in part thanks to synergies with Pirelli Tyre, in particular relating to use of its commercial network. The use of such filters is constantly increasing as international regulations become more and more stringent, and due to incentives for their use in some countries and the low cost of their application.
Pirelli Eco Technology intends to capitalize on the competitive advantage it enjoys, based on:
Pirelli Eco Technology intends to capitalize on the competitive advantage it enjoys, based on:
- an increase in manufacturing capacity;
- greater commercial presence in key markets, with a focus in Europe and China and, later, to other parts of the world;
- strengthening both in the retrofit segment and, in the medium term, in original equipment;
- research and innovation, in part thanks to collaboration with international universities, as well as with Pirelli Labs, for development of new applications and continuous improvement of manufacturing processes.
Pirelli RE >
The objective of Pirelli RE is to increase efficiency of management of the assets in its portfolio, cut costs and adapt its internal organization to the changed scenario in the real estate market, accelerating the turnaround the company has already begun.
Actions on costs
Actions on revenues
Actions on costs
- rationalization of the number of employees in real estate, with the goal of reaching a headcount of about 800 people at the end of 2009;
- reduction of the number of corporate vehicles and cutbacks in other fixed costs.
Actions on revenues
- Preside efficiently over all the phases in the value chain, responding to demand for services both in Residential and in Commercial
- Focus the business on the following activities:
- sales of non-strategic real property;
- selective development of real estate initiatives in Residential, realizing products with distinctive characteristics such as eco-compatibility, at sustainable prices;
- increase profitability in Commercial;
- partnerships in the public and private sectors for management of large real estate portfolios.
Pirelli Broadband Solutions >
In the three-year period the company plans:
- constant focus on technological innovation;
- completion and broadening of the product portfolio, with consequent diversification and growth of the customer base;
- strengthening of its commercial presence internationally, with particular attention to Latin America, Asia Pacific, and North Africa;
- possible strategic partnerships to sustain further development.
Last Revised: 29
2009