Pirelli attributes strategic importance to communication as a key instrument to build a relationship of trust with the financial community. In this respect, and in line with the requirements in The Values and Ethics Code of the Group, Pirelli maintains an ongoing dialogue, through the Investor Relations department and the Group’s Top Management, with analysts and investors (institutional and individual), promoting fair, transparent, timely and accurate communication.
In 2014, financial communication was aimed at further strengthening dialogue with key stakeholders: institutional investors (representing more than 46% of the share capital), SRI (Socially Responsible Investing) investors, individual shareholders (11% of the share capital), bond holders and financial analysts. There are numerous opportunities to meet on the main financial markets in Europe (Milan, London, Paris, Frankfurt, Zurich, Copenhagen, Stockholm and Helsinki), in North America (New York, Boston, San Francisco, Los Angeles, Chicago, Toronto), and in Asia (Shanghai, Singapore, Hong Kong and Tokyo).
Moreover, the participation of Pirelli in Formula 1 competition as the sole supplier of tyres continues to represent a major opportunity for acquainting the financial community with the company business. In 2014, in conjunction with the main Grand Prix events, Pirelli organised meetings with financial analysts and leading local investors, with detailed sections dedicated to technology, the product, the brand and distribution. These activities, together with the growing investor interest in the specificity of the Equity Story of Pirelli in the Tyre industry, have led the shareholder base to become more and more international: at the end of 2014 foreign investors represented 43% of the ordinary share capital and are mainly concentrated in the United States, the United Kingdom and the Scandinavian countries.
In 2014 the Company has continued its dialogue with SRI investors, a sector whose weight is progressively growing and which sees Pirelli among the most appealing companies, partly due to the specific communication activities developed by the management through roadshows and dedicated webinars. The focus of the financial community in its dealings with Pirelli is confirmed by the coverage of its shares by 26 of the major national and international investment banks. The assessment (Target Price) and analysts’ estimates (Consensus) are periodically published on the company website.
Pirelli closed 2014 with a stock market value of €5.4 billion (average December market capitalisation).
The share price performance, especially in the last quarter of 2014, was affected however by the volatility of the South American markets and the geopolitical crisis in Russia. The preliminary results of 2014, published on 12 February, highlighted the Group solidity leading investor interest in the shares: +20% growth in the stock market in the first two months of 2015.
PIRELLI & C. stock price performance VS FTSE MIB, EUROPE STOXX AUTO
For more information reference is made to the Investors section of the Pirelli website, which offers a comprehensive and constantly updated source of information on matters of interest to shareholders and the financial community.
Stock market indices and ethical finance
The commitment to create long-term value that characterises the company’s responsible management and economic, social and environmental performance, has allowed Pirelli to be ranked on some of the world’s most prestigious stock market sustainability indices for years.
Pirelli has been included in the Dow Jones Sustainability indices since 2002. In September 2014, Pirelli for the eighth year in a row was confirmed as global sustainability leader in the ATX Auto Components segment in the Dow Jones Sustainability World and Europe indices. The Pirelli global rating 2014-2015 totalled 85 points compared to an industry average of 48. In January 2015 Pirelli was named global sustainability leader in the ATX Auto Components Sector and a Gold Class Company for the eighth year in a row in the prestigious Sustainability Yearbook 2015. Published by RobecoSAM, the Yearbook includes the Top Sustainability Scoring Companies belonging to some 59 business sectors. Pirelli has also been included in the FTSE Global and European STOXX indices since 2002. The 2014 rating of Pirelli in the Automobiles & Parts sector was once again 100 out of 100, for the third consecutive year.
Ability to manage the risks and opportunities related to climate change are the subject of analysis by Carbon Disclosure Project: for the third year, Pirelli is part of the Climate Disclosure Leadership Index (CDLI) with a rating of 99B (compared to 96B in 2013). In 2014 the company was awarded the top position in the CDP Italy 100 and has the highest disclosure score among the largest tyre manufacturers in the world. The Carbon Disclosure Project (CDP) is an independent, non-profit organisation that offers companies and countries a system for measuring, recording, managing and sharing global information on climate change and water resource risk. Today more than 3,700 organisations present in the most economically developed countries measure their own greenhouse gas emissions and analyse the risks and opportunities related to climate change through the CDP, with the aim of establishing emission reduction objectives and improving results. The CDP is supported by 822 institutional investors that manage over USD 95,000 billion and control the largest international database containing information about the climate change management policies implemented by the most important global organisations.
For the second consecutive year, Pirelli is the only tyre manufacturer in the world among the 100 companies that make up the Global Compact 100 index. The index is composed of 100 companies chosen on the basis of their compliance with the ten guiding principles of the UN Global Compact, which expresses the commitment by management to issues related to sustainability and the level of profitability. These companies, whose stock market performance was monitored by UN Global Compact over the last three years, have outperformed the FTSE® All World stock index over the past two years.
Pirelli & C is included in the Ethibel EXCELLENCE Investment Register and in the Ethibel Sustainability Index (ESI) Excellence Europe. Forum ETHIBEL (www.forumethibel.org) only considers actions of companies that obtain a high CSR rating on all related issues.
For the fourth consecutive year, Pirelli is part of the STOXX Global ESG Leaders Indices. The indices were created in 2011 by the company STOXX Limited which selects the best companies in terms of sustainable performance from among the securities presented in the initial international basket, the STOXX Global 1800 Index.
Pirelli continues to be part of Euronext Vigeo – Eurozone 120, which includes the 120 listed companies with the highest sustainability rating on the Stock exchanges in the euro area, selected on the basis of 330 indicators evaluated by Vigeo within 38 sustainability drivers.
Since 2008, Pirelli has been included in the sustainable finance indices of ECPI, in particular in the ECPI EMU Ethical Equity index, in the ECPI Global Developed ESG Best in Class index, in the FTSE ECPI Italia SRI Benchmark index and FTSE ECPI Italia SRI Leaders.