9. Replacement Price Index
Overall Tyre Diameter, Load & Speed Performances
1X 3X
225/45 R17 W
245/50 R18 RF Y
6X
FOCUS ON HIGH VALUE PREMIUM SEGMENTS
295/35 ZR20 (Y)
10X
155/80 R13 T
9
10. SUV
D - F
SUV
A - C
BEST PRODUCT RANGE LINED UP
TO MEET CONSUMER NEEDS
Launch Year Renewal Year
URBAN
TOURING
PURE
PERFORMANCE
CONSUMER
STYLE
VEHICLE
SEGMENT
A B D FEC Race
2007 20122012
2010
2010
2011
2009
2010
10
11. New Products (% on Total sales) OEM’s Homologations
GREEN, RENEWAL SPEED, INNOVATION
AND OPTIMIZATION
21%
2010 2013 20152009
25%
30% 28%
31%
20152009
35%
50%
61%
138
2010 2013 20152009
140
160 170
2010 2013
Green Products (% on Total sales) Portfolio Optimization
Size covered
From 2009… …To 2015
496 680
Product
lines
SKU
47
~1.70
0
35
~1.60
0
SKU = Stock-Keeping Unit
11
12. EXPECTED DIRECT RETURNS
Increased Pirelli Sales, especially
PZero (double speed growth vs. average)
Higher Dealer penetration
Higher price positioning
Stronger partnerships with “high-end” car-
makers
F1 marketing investments will
create concrete returns through
commercial support programs
F1 MARKET ACTIVATION WILL DRIVE VALUE SALES GROWTH
+
EXPECTED INDIRECT RETURNS
Brand awareness (particularly in RDE)
Brand value
Increase of Consumer consciousness
(proud to fit Pirelli tyres)
12
13. RIDING THE PREMIUM INCREASE WITH ONE POWER BRAND
~95%~95% ~97%~97%
Weight of
Premium
products
on total
sales
Weight of
Pirelli
branded
products
on total
sales
201
0
201
3
2015
66%
71%
73%
200
5
62%
~93%~93%
13
14. 2010
14
64% 71%
% on OE sales
VALUE CREATION IN OE BEING SELECTIVE ON CUSTOMERS,
MODELS AND SIZES
2013
Prestige
Premium
Synergic
Pirelli
Segment
Share
Pull-through
+
-
# 1
Strong,
2- digits
Low,
1- digits
Premium Mix
on OE Sales
72%
2015
15. WHILE THE REPLACEMENT FOCUS CONTINUES TO BE THOSE
CONSUMERS THAT SEEK, RECOGNIZE AND PAY FOR VALUE
Supporting Actions
EMEA + NAFTA 75% 80%
% on sales
Replacement
rate
RDE mkts 47% 57%
79%
52%
Enlarge retail network
Develop the B2C platform and Web-Market
Place for our hard-franchise network
F1 Market Commercial Activation
Exploit Moto best practices in
engaging the Consumer
Enhance Web-based customer integration
to optimize Supply Chain
+
-
2010 2013 2015
Premium on total Replacement Sales
Premium
high/end
cars
Mass market
15
17. PREMIUM & EFFICIENCY
Greenfield New capacity / Mix improvement … Capex
ROMANIA
+60% by 2013 focused
on Premium /
Specialties
MERCOSUR
+10% by 2011 and
another 10% available
thanks to Mexican
ramp-up by 2012
MEXICO
Operational by 2012
Better service and lower
costs to deliver high-end
NAFTA markets
Debottlenecking Latam
Operational by 2012
Radial only to serve
International markets
ITALY
Hi-Tech Prestige
Competence Center
Next MIRS
100% Green Performance
30% higher efficiency
RUSSIA
JV with initial output by
2012
CHINA
+100% by 2013 focused on
Premium / Specialties
2010
56
70
≤80
Mln pieces (Radial only)
800 ml€800 ml€ 500 ml€500 ml€
70
80
2013 2015
+25%
+15%
YEAR END CAPACITY
Improve focus, simplify operations
17
18. Production by Plant MaturityPirelli Industrial FootprintProduction by Area
“Old
Plants”
“New
Plants”
GermanyGermany
TurkeyTurkeyTurkeyTurkeyTurkey
UK
UK
ItalyItalyItaly
USAUSA
ArgentinaArgentinaArgentina
VenezuelaVenezuelaVenezuela
Greenfield
Mix Improvement
Capacity Increase
China
Romania
MexicoMexico
Mature
RDE
COMPETITIVE CAPACITY INCREASE IN HIGH GROWTH AND
LOW COST AREAS
2010
70%
30%
2013
61%
2015
48%
39%
52%*
2010
29%
71%
2013
26%
2015
20%
74% 80%
Russia
Localization: increase of
local for local production
from 83% to 89% (reduction of
logistic and duties costs)
Specialized platform, product
customization and new
processes (NEXT MIRS and
PTSM for a flexible UHP
production in small lots)
Average plant capacity +30%
2015 vs. 2010
New and recent Greenfields
capacity projected > 10 mln pcs
* 10% coming from new machineries in old factories
18
23. DISCLAIMER
23
This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA’s
current expectations and projections about future events and does not constitute an offer or solicitation for the
sale, purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of
the financial community.
These statements appear in a number of places in this presentation and include statements regarding the intent,
belief or current expectations of the customer base, estimates regarding future growth in the different business
lines and the global business, market share, financial results and other aspects of the activities and situation
relating to the Company.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ materially from those expressed in or implied by these forward looking statements as
a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely.
Consequently it is recommended that they be viewed as indicative only.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of
the date of this presentation.
Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking
statements which may be made to reflect events and circumstances after the date of this presentation, including,
without limitation, changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of
unanticipated events.
The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests –
as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) – that all the accounting
information contained in this presentation correspond to the documented results, books and accounting of the
Company.