Production Facility

Production Capacity at year-end 2014: 72 mln pcs Consumer and 6.3 mln pcs Industrial

Production Process of a tyre

Source: Science and Technologic of Rubber, 2nd Edition, Academic Process

Product Range

Car

ULTRA HIGH PERFORMANCE

Tyres combining the best of Pirelli knowledge with the experience of many years of sport racing competition with the best car manufactures.

TOURING & GREEN PERFORMANCE

Tyres that bring together performance and safety with a lower environmental footprint through the use of materials that reduce the emissions of CO2.

SUV

Tyres specifically designed or SUVs or both on and off road driving.

WINTER

Tyres specifically designed to guarantee performance and safety in winter conditions, such as SottozeroTM.

Motorbike

SUPERSPORT

High performance tyres designed for both track and road use on supersport and naked bikes.

SPORT TOURING

Tyres designed for Touring purposes featuring high mileage and easy handling capabilities.

ENDURO STREET

Tyres designed or Enduro Street bikes used mainly on road with off road look and traction.

OFF ROAD

Tyres specifically designed for extreme off road; 62 times World Champion in MX category.

Truck

H

Products designed for long-haul transport vehicles on motorways or arterial roads with very low specific tread-wear conditions.

R

Products designed for all-around trasport vehicles traveling on slightly abrasive surfaces, including winding/hilly roads and urban traffic.

G

Products designed for mixed use vehicles on the road, on construction sites and under slightly-aggressive tread-wear conditions.

W

Products designed for use over long and medium distances under critical weather conditions and on snow covered surface.

Key performance indicators

2010 2011 2012 2013B 2014B
Economic Kpis €/mln
Group Revenues 4,848 5,655 6,072 6,061 6.018
Consumer Revenues 3,300 3,926 4,420 4,479 4.610
Industrial Revenues 1,472 1,676 1,612 1,552 1.397
PremiumA Revenues 1,448 1,716 2,075 2,274 2.536
% on Consumer Revenues 44% 44% 47% 51% 55%
Group EBITDA Before Restr. Costs 654 835 1,103 1,095 1.168
Consumer EBITDA Before Restr. Costs 488 669 871 840 935
Industrial EBITDA Before Restr. Costs 196 206 256 280 242
Group EBITDA Margin Before Restr. Costs 13.5% 14.8% 18.2% 18.1% 19,4%
Consumer EBITDA Margin Before Restr. Costs 14.8% 17.1% 19.7% 18.7% 20,3%
Industrial EBITDA Margin Before Restr. Costs 13.3% 12.3% 15.9% 18.1% 17,3%
Group EBIT Before Restr. Costs 433 610 832 810 869
Consumer EBIT Before Restr. Costs 335 507 664 612 697
Industrial EBIT Before Restr. Costs 142 155 196 227 183
Group EBIT Margin Before Restr. Costs 8.9% 10.8% 13.7% 13.4% 14,4%
Consumer EBIT Margin Before Restr. Costs 10.1% 12.9% 15.0% 13.7% 15,1%
Industrial EBIT Marging Before Restr. Costs 9.6% 9.3% 12.1% 14.6% 13,1%
Net Income Before Disc. Operations 228 313 392 304 315
Net Income 4 441 392 306 333
Attributable Net Income 22 452 387 304 319
EPS € 0.04 0.93 0.79 0.62 0,65
Dividend Per Share (Ordinary) € 0.17 0.27 0.32 0.32 0.37
Dividend Per Share (Risp) € 0.23 0.34 0.39 0.39 0.43
Dividend Pay Out on Group Net Income Adj. C 93% 40% 40% 43% 41%
Capex 439 626 471 413 378
% on sales 9% 11% 8% 7% 6%
Consumer Capacity (mln pcs) 56 59 68 70 72
% Premium Capacity 34% 37% 40% 48% 52%
Industrial Capacity (mln pcs) 5.8 5.9 6.3 6.2 6.3
Net Cash Flow Before Dividends and Acquisitions/ Disposals 153 (115) (59) 232 312
% on Sales 3% n.m. n.m 4% 5%
Net Invested Capital 3,281 3,727 4,427 4,455 4,273.1
Net Debt 456 737 1,205 1,322 980
Net Debt/Ebitda 0.7x 0.9x 1,1x 1,2x 0,8x
Net Debt/Equity - Gearing 22% 34% 50% 54% 38%
Group ROID 15% 19% 22% 20% 22%
Stock Market CapitalisationE 3,011 3,220 4,258 5,570 5,412
Number of Ordinary Shares (millions) 475.7 475.7 475.7 475.7 475.7
Number of Savings Shares (millions) 12.3 12.3 12.3 12.3 12.3
Gross global added value 1,496 1,918 2,211 2,218 2,296
of which contributions to the external community 3.6 5.1 5.3 5.5 6.6
R&D expenses 150 170 179 199 206
% of Revenues 3% 3% 3% 3% 3%
% of Premium Revenues 7% 7% 7% 7% 7%
Green Performance Revenues n.a 34.9% 39.7% 43.1% 45.7%

A Premium Car: tyres with rim size of 17 inches and above; Premium Moto: Radial tyres and Custom Touring, Off Road and Sport Touring X-ply tyres with speed index ≥ H.
B Steelcord Among Discontinued Operations.
C 2010 data based on parent company Net Income.
D ROI: without financial assets, before restructuring costs. 2012 trend discounts the different consolidation perimeter.
E Stock market capitalization, December average in €/mln.

2010 2011 2012 2013 2014
Employees and Society KPIs
Headcount at end of year 29,573 34,259 37,338 37,979 37,561
of whom % women in managerial positions 17% 18% 18% 18% 19%
of whom temporary workers 2,426 2,649 2,714 2,620 2,448
Scope of Pirelli subject to application of SA8000® reference standard 100% 100% 100% 100% 100%
OHSAS 18001 certified Tyre operating facilities 90% 90% 83% 83% 96%
Accident frequency index 1.6 1.1 0.8 0.6 0.5
Average number of training days per employee 6.3 6.2 5.1 7.2 8.2
ISO 9001 certified Tyre operating facilities 100% 100% 100% 100% 100%
Whistleblowing reports 1 2 8 11 23
Number of independent audits on suppliers’ sustainability 46 56 62 62 78
Environment KPIs
Energy specific consumption [GJ / tonFP] 14.57 14.65 14.86 14.45 14.05
CO2 equivalents specific emission [ton/tonFP] 1.05 1.04 1.11 1.09 1.07
Water specific withdrawal [m3/tonFP] 16.2 15.0 16.5 14.9 12.1
Waste specific production [kg/tonFP] 141 131 152 160 142
Waste recovery 66% 69% 76% 80% 83%
ISO 14001 certified Tyre operating facilities 100% 100% 100% 96% 100%

Tyre Revenues breakdown

By Geographical Area
2010 2011 2012 2013 2014
By Business
% Consumer 70% 70% 73% 74% 77%
% Industrial 30% 30% 27% 26% 23%
 
By Channel
% Original Equipment 25% 25% 24% 25% 24%
% Replacement 75% 74% 76% 75% 76%

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