Added value

  • The distribution of added value between stakeholders enables the to express, in monetary terms, the existing relations between Pirelli and the major stakeholders
  • In spite of the complex economic situation in 2008 and 2009, the Group maintained its focus on the importance of distributing value to the external community
  • Marked increase in contributions to research

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 to express, in monetary terms, 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).


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The added value created by Pirelli & C. Group in 2010, 2009 and 2008 is broken down as follows:

  2010 2009 2008
GROSS OVERALL ADDED VALUE 1,495,881 % 1,293,255 % 918,953 %
Remuneration of personnel (1,063,648) 71.1% (949,217) 73.4% (1,007,702) 109.7%
Remuneration of Public Administration (137,358) 9.2% (90,350) 7.0% (71,400) 7.8%
Return on credit capital (65,793) 4.4% (70,112) 5.4% (51,396) 5.6%
Remuneration of venture capital (81,151) 5.4% (81,132) 6.3% 0 0.0%
Remuneration of the company (144,306) 9.6% (99,144) 7,7% 214,157 -23.3%
Outside donations (3,625) 0.2% (3,300) 0.3% (2,612) 0.3%

(*) The figures do not include the operations discontinued during the year that belonged to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A.) and Broadband Solutions S.p.A.
The previous periods (2009 and 2008) were consequently restated on a comparable basis.

 

The trends of the items comprising gross overall added value as indicated hereinabove are adequately explained in Volume 1, Annual Financial Report at december 31, 2010. Reference is made to that Volume for further details.

With reference to the outside donations, the table below shows the contributions and donations made by Pirelli in the three-year period 2010, 2009 and 2008, broken down by category:

Outside donations*
(in thousands  of Euro)      
  2010 2009 2008
Education 770 696 785
Culture 1,035 1215 624
Research 1,119 629 560
Solidarity, Sport 702 761 640
Other 0 0 3
TOTAL 3,625 3,301 2,612

(*) The figures do not include the operations discontinued during the year that belonged to Pirelli & C. Real Estate S.p.A. (now Prelios S.p.A.) and Broadband Solutions S.p.A.
The previous periods (2009 and 2008) were consequently restated on a comparable basis.

In spite of the complex economic situation in 2008 and 2009, the Group maintained its focus on the importance of distributing value to the external community. These contributions were further increased in 2010 once the economic recovery got underway. The change over the past two years as compared with 2008 shows a marked increase in contributions to research. This area is considered key to global recovery from the crisis.

To correctly dimension and understand the proportion of the spent among the above categories, it must be remembered that the amounts shown are consolidated figures indicated in Euro, although they were mainly spent in local currency in the various countries (often emerging markets / developing countries) where Pirelli operates. This is particularly true for the categories “Education” and “Solidarity.” Paradoxically, though the reported figures shown are lower in absolute terms than what was spent on Culture and Research, they correspond in real terms to the financing of a “universe” of development projects in the receiving countries.

Reference is made to the Social Dimension section for a detailed description of the principal actions associated with these contributions and donations.

During FY 2010, 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 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).