Pirelli & C.

View your recently saved pages:
View all pages (0)

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 between 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).

The added value created by Pirelli & C. Group in 2009, 2008 and 2007 is broken down as follows:

Added value (in thousands of euros)

2009 2008 2007
GROSS OVERALL ADDED VALUE 1,429,659 1,169,029 1,871,969
Remuneration of personnel (1,053,732) 73.7% (1,210,440) 103.5% (1,156,170) 61.8%
Remuneration of Public Administration (97,897) 6.8% (78,335) 6.7% (133,503) 7.1%
Return on credit capital (85,353) 6.0% (76,087) 6.5% (36,288) 1.9%
Return on venture capital (81,132) 5.7% - 0.0% (169,503) 9.1%
Remuneration of the company (107,398) 7.5% 200,866 -17.2% (368,132) 19.7%
External donations (4,147) 0.3% (5,033) 0.4% (8,373) 0.4%

The changes in the items comprising gross overall added value is indicated hereinabove are adequately explained in Book One, Directors’ Report. Reference is made to that report for further details.

The table below shows the contributions and donations made by Pirelli & C. Group in the three-year period 2009, 2008 and 2007, broken down by category:

Area of intervention (in thousands of euros)

Education 711 1,322 1,035
Culture 1,633 2,076 5,774
Sport 50 137 287
Research 923 615 483
Solidarity 830 880 656
Other - 3 138
TOTAL 4,147 5,033 8,373

The current complexity associated with the economic situation has led to revaluation of what has been allocated to the different areas of intervention. The changes that have occurred over the last two years as compared with 2007 illustrate this situation, with a significant reduction in the total amount of contributions and donations although, when the individual items are observed, there has been a substantial increase in resources allocated to research, training and solidarity, which are of fundamental social importance during hard economic times.

Reference is made to the Social Dimension (“External Community” section) for a detailed description of the principal actions associated with these contributions and donations.

During FY 2009, no significant penalties were levied and paid on a final basis for violation of laws and regulations, including any penalties connected with the supply and use of Group products and/or services.

Finally, the Group “The Pirelli Group does not provide contributions, advantages, or other benefits to political parties or trade union organizations, or to their representatives or candidates, this without prejudice to its compliance with any relevant legislation.

(Ethical Code – “The Wider Community”).

Significant loans received in 2009

The European Investment Bank (EIB) and Pirelli signed an agreement for a Euro 100 million loan granted by EIB to support Pirelli Group research and development projects in 2009-2012.

The loan is intended to support research and development in the field of product innovation and production processes intended to reduce the environmental impact of tyres, among other objectives, by improving their performance and safety standards through the identification of innovative materials and components. The project involves the activities carried out at the various Pirelli research and development centres located inside and outside Italy, and was culminated by drawing on the Euro 200 million credit line resolved by EIB in July 2009.

The new loan consolidates the relationship between Pirelli and EIB, which has previously contributed to the Group’s constant commitment to innovation and development of its global competitiveness.

We are happy to continue in our tradition of supporting the Pirelli Group, which makes investment in research one of the pillars of its policy for growth in international markets, placing great attention on the goal of reduction of polluting emissions – which is a priority for EIB,” said Dario Scannapieco, EIB vice president in charge of Italy, Malta and the Western Balkans..

The loan from EIB,” said Marco Tronchetti Provera, chairman of Pirelli “represents a contribution to and an important recognition of the research activity of Pirelli, which has always been strongly committed in this direction with the aim of improving quality of products for the benefit of consumers and the competitiveness of the Group on the market. Today, in particular, this effort shows us committed to development of products and processes that are more and more eco-compatible, that is, oriented towards adopting technologies that offer customers not only safety and high performance, but also solutions which are respectful of the environment.