Shareholders, investors and the financial community

  • The Group maintains an open and transparent dialogue with analysts and investors
  • Ensure that a proper valuation of Group assets can be made
  • Pirelli representatives met with 408 institutions, comprised of both current and prospective investors, along with roadshows.
  • In 2010 the Group met more frequently with investors on major financial markets during dedicated road-shows and participation at industry conferences

“In its relations with all classes of shareholders, with institutional and private investors, financial analysts, market operators and, in general, with the financial community, the Pirelli Group is fully transparent, complies with the requirements of accuracy, timeliness, and equal access, and aims to ensure that a proper valuation of Group assets can be made.”
(Ethical Code - Shareholders, Investors and the Financial Community).

Pirelli attributes great strategic importance to financial communication, considering it a key tool for building a trust-based relationship with the markets. Accuracy, timeliness, equality and transparency are the basic rules that Pirelli applies to its financial disclosures.

Through top management and the Investor Relations Department, the Group maintains an open and transparent dialogue with analysts and investors – both individuals and institutional investors – in view of promoting fair valuation of its assets.

In 2010, financial communication aimed to promote the Pirelli Equity Story.
Conclusion of the process of transforming the company into a pure tyre company (following spin-off of Pirelli RE and the disposal of non-strategic activities) and the achievementachievement of 2011 targets a year early led to drafting of the new 2011-2013 Business Plan, with vision to 2015.

The new plan calls for:

  • further focus on the premium tyre segment, which is growing at a rate faster than the market and in which Pirelli holds a leadership position;
  • adjustment of production activities between rapidly developing economies (RDE), Latin America and mature markets, in consequence of which each of the three areas will contribute one-third to Group profits in 2015;
  • technological upgrade of production sites and machinery (in 2015, 60% of production will be in plants less than ten years old).

In 2010 the Group met more frequently with investors on major financial markets (Milan, London, Edinburgh, New York, Boston, Paris, Frankfurt, Zurich, Copenhagen and Stockholm) during dedicated road-shows and participation at industry conferences. Pirelli representatives met with 408 institutions, comprised of both current and prospective investors. At the same time, coverage of Pirelli stock by investment banks was expanded, especially amongst international investment banks with specialised coverage for the tyre industry. At December 31, 2010 Pirelli stock was covered by 21 brokers who regularly publish on it, including 43% global (25% at December 31, 2008). For years Pirelli has been dedicating special attention to relations with the ratings agencies that specialise in sustainable finance. In 2010 it also dedicated special attention to Socially Responsible Investors, with whom dedicated road-shows were held in the Paris and Frankfurt financial centres.

Pirelli financial communication is rounded out by a series of information services offered in the Investors section of the Pirelli website: from the “Investor Channel,” a financial and business news channel, to Peers and Market, a weekly financial newsletter, from Tyre Market Watch, which monitors tyre market trends in the principal geographical areas where the Group operates, to the summary forecasts (Consensus) of financial analysts who cover Pirelli stock.

In recognition of the efforts made by the company to financial communication, Pirelli was awarded the “Country Award 2010” for Italy. This important award is granted by IR Magazine Europe to the best firms and professionals in the area of investor relations.

The following graphic illustrates the stock market performance of Pirelli & C. in 2010. It also indicates the performance of the Auto & Parts segment and the FTSE Mib, for easy comparison:

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In 2011 financial communication will continue by reporting the gradual implementation of the new 2011-2013 Business Plan, and by expanding contacts with analysts and investors, dedicating special attention to SRI Investors as part of the Group sustainability strategy.

For more details, reference is made to the regularly updated “Investors” section of the website www.pirelli.com. It provides a complete information tool for matters of interest to shareholders and the financial community.