Back to Formula 1 - Pirelli

World No.
Worldwide quarterly magazine of the Pirelli Group
Back
to Formula 1
Competitiveness
around the world
58
SEPTEMBER 2010

Contents
Scenario Growing investments for a global strategy 2
Road Safety A sustainable future - The European response
to the future challenges of transport 4
‘Safe&Go’ Pirelli's Italian campaign in partnership
with the Minister of Transport and Autostrade per l’Italia 6
Night Dragon The launch of Pirelli's custom V-Twin tyre in Europe 8
Truck
Pirelli's factory in Alexandria, Egypt, is growing 9
Product Development
The partnership with Pagani Automobili and the Zonda R's
record at the Nürburgring on P Zero tyres 10
'Managing to Lea(r)n' A PMS training programme 12
No. 58 — September 2010
Worldwide quarterly magazine
of the Pirelli Group
Registrazione Tribunale di Milano
n. 494 del 24.9.1994
www.pirelli.com
F1 Dossier
How Pirelli is getting ready for the big competition.
The Izmit factory in Turkey. 1913-2010: the Pirelli
success story 13
'My Time for Haiti'
Pirelli's worldwide fund raising campaign, concrete help for 4,000 children 25
Sustainability The Pirelli Group's 2009 Sustainability Report 26
'Team for kids' in Romania
The Pirelli Steelcord managers help to restructure
the paediatrics department of Slatina Hospital 28
Corporate culture
The inauguration
of the Pirelli Foundation 30
Superbike World Championship: the highlights 34
2010 awards World leaders 36
Published by
Pirelli & C. S.p.A.
Direzione Affari Istituzionali
e Culturali
Editor-in-Chief
Antonio Calabrò
Executive Editor
Alessia Magistroni
Managing Editor
Cinzia Storti
E-mail
pw.editorial@pirelli.com
Editorial office
Viale P. e A. Pirelli, 25 - Milano
English text editor
Robert Newman
Graphics
Leftloft — www.leftloft.com
Printing
Graphicscalve S.p.a.
Printed on GardaPat 13 Kiara paper
CQ-COC-000018
Continuing to be
protagonists
of the future
A
passion for cars, the most
sophisticated technologies,
high performance together
with ultimate safety, the most
demanding adventures in industrial
production and in sport. There
is all of this behind the return of
Pirelli to Formula 1 as the exclusive
supplier of tyres to all of the racing
teams for the three year period
2011-2013. A return in great style
after an absence of almost 20 years:
the last Grand Prix in which Pirelli
competed was in 1991. It is a highly
demanding challenge on both the
technological front and for the
precision of associated services.
“A success for Italian technology
and for the Pirelli technicians”,
confirmed Pirelli chairman Marco
Tronchetti Provera. It is the
result of a constant presence in
both the world of motor racing
(rallying) and equipping road cars
of prestige and high performance;
the supercars, from the Ferraris
to the Lamborghinis, from the
Porsches to the Aston Martins and
so the list goes on. An international
challenge, naturally. Because the
world of Formula 1 is international,
with the involvement of the most
advanced racings cars that take
to the track and with the interest
of an audience of two billion
enthusiasts at the circuits and
in front of the TV. That is why
the commitment of Pirelli will
be international, with research
into materials and products and
with production on which R&D
at Bicocca, Milan, will insist, as
they will in the department of the
Pirelli Izmit factory in Turkey, our
specialists in motor sport tyres.
Behind us there is a long history of
excellence of performance. Ahead of
us, the ambition of continuing to be
protagonists of the future.
No. 58 — September 2010
1

Scenario
Group's results and international markets
Growing investments
for a global strategy
Pirelli Tyre achieved the best
operational result in its history.
The Group's figures as per 30 June 2010
confirm the positive trend
Antonio Calabrò
Pirelli, an Italian multinational
undergoing expansion in
the main international markets:
turnover and investments
growing, profitability improved,
employment on the increase, new
technological and production challenges
taking place. This is the portrait
that also emerges from the six
monthly results of both Pirelli & C.,
the holding company, and Pirelli
Tyre, approved by the board of directors
on 29 July.
The great crisis that has convulsed
the economies of half the world
since 2008 still makes itself felt.
And especially in the most ancient
and deep rooted areas of industrial
and financial development, in
Europe and the USA, processes of
profound reconstruction are taking
place in a radical re-think of
products and production systems,
of consumption and of lifestyles.
But other areas, like China, Brazil,
Russia and India, are undergoing
swift rhythms of growth. The economic
and social geography of the
world is changing. New subjects
are asserting themselves. And one
2 PIRELLI WORLD
needs to take account of that.
From the autumn of 2008, Pirelli
has reacted to the first signs of the
global crisis. It was restructured,
cutting costs to become more lean
and efficient and, above all, investing
in the most dynamic markets
and high range product segments,
more profitable. It has concentrated
Pirelli worldwide
USA
United
Kingdom
Spain
Venezuela
Brazil
Argentina
Italy
its energies on its core industrial activities,
tyres and products linked to
the evolved automotive market. And
it has played the green performance
card, sustainable products and production
systems both environmentally
and socially, making them the
pivot of its three-year plan 2009-2011.
Today, the results can be seen with
great clarity, actuality and perspective.
A few numbers, just to be clear.
The turnover of the Pirelli Group up
to 30 June 2010 exceeded 2,426 million
euros, an increase of 19.8% over
the same period last year. The operational
result was 193.4 million, an
increase of 62.8%. And if one looks
deeper into that result, one discovers
that 217.3 million are attribut-
Germany
Romania
Turkey
Egypt
China

able to Pirelli Tyre, so to the core
industrial activity. With the satisfaction
of a record: in the second
three months Tyre achieved the
best operational result in its history
at 121.8 million. A fine incentive
with which to affront the second
part of the year with confidence
and also look positively to 2011.
In fact, in these conditions the
turnover target for all of 2010 improves
to 4.8 or even 4.9 billion
compared to the 4.6 estimated
in May, with an ebit of 7% (an increase
compared to the 6.5% of the
May prevision), naturally excluding
Pirelli RE, now outside the perimeter
of Pirelli business.
And investments? Growing, exceeding
350 million euros. Here
is some key data. Exactly. Investments.
Where? In Italy as well as
in other major areas of dynamism;
in Brazil, Argentina, Romania, China,
the USA, while on the horizon
there are those in Russia, Turkey
(to meet the new challenge of tyre
supply to Formula 1); where growing
markets demand products
with which to fulfil the need to
develop the automotive industry.
Looking at an imaginary map
showing the industrial presence of
Pirelli (24 factories in 12 countries
The Pirelli
Group's results
as per 30 June 2010
Turnover
2,426
million euros
+ 19.8%
(over the same period last year)
Investments
Exceeding
350
million euros
across the world) and the new investment
projects, it is easy to see
the dimensions that the Group is
strengthening and developing.
The multinational rooted in its historic
Italian identity, not just because
Bicocca, Milan, is its headquarters
and home of the most advanced
R&D structure (in which Pirelli
continues to invest between 3% and
4% of turnover, the largest amount
of all the tyre manufacturers), but
also because at Settimo Torinese in
Italy a new industrial centre is taking
shape, the most technologically
innovative and environmentally
sustainable factory, accounting for a
substantial investment of 170 million
euros by the end of 2011.
While remaining Italian, Pirelli still
monitors growing markets. A global
strategy. And at the same time local.
There is no contradiction between
the two dimensions. Quite
the reverse. A good synthesis that
could be a paradigm of reference
for other industrial strategies. To
those who maintain that industrial
production in the west, with
its high labour costs, is becoming
The new factory
in Settimo Torinese,
Italy, an investment
of 170 million euros
increasingly impossible, Pirelli responds
with new plants that reach
profitability due to more sophisticated
and innovative production
technologies for products of extremely
high range, advanced performance
and safety. The industrial
soul marries with research
under the sign of excellence. Yet at
the same time, profitability is pursued
in low cost countries, aiming
not only at lower labour costs and
advantages for new installations,
but at the dynamism of the new
markets. Not a strategy of delocalisation,
but focalisation on growth.
On the other hand, it is part of
Pirelli’s tradition to know how to
play the role of protagonist in the
various areas of the world, gathering
development opportunities.
And it is because the company,
aware of history, has always been
used to business culture, of contemporaneousness,
continuously
thinking of the future, that today
it can continue to feel young, in
step with the times. A fine testimony
to the best Italian character
in syntonic with the world.
No. 58 — September 2010
3

European strategies
Environment and safety
A sustainable future
for transport
The European authorities are working closely with
industry to provide an adequate response
to mobility challenges
Marianna Restaino
European authorities are particularly concerned
about the expected increase in the mobility
of people and of the transport of goods
in Europe. More trucks and cars on the roads will
have a negative impact on the environment, causing
additional pollution as well as higher social costs.
20%
reduction in CO 2 exhaust
emissions by road passenger
and freight traffic set by the
European Parliament
over
35,000
lives lost per year means
road transport is not safe
The European authorities are working closely with
industry to provide an adequate response to these future
challenges. The European Commission is working
with the European Parliament and the council
for a new long term strategy relating to the transport
4 PIRELLI WORLD
sector, which should be
environmentally, economically
and socially
sustainable: the white
paper on the future of
transport is expected
by the end of this year.
Through its adoption of
the communication on
a sustainable future for
transport on 17th June 2009,
the European commission
provided some input for the
European Parliament and stakeholders
in order to address concrete
proposals for drafting the white paper.
Over the next decade, transport policy will address
several challenges. First, sustainability should
mean safety; as the vice-president for transport Sim
Kallas recently recalled, “ A transport system which
still takes the lives of more than 35,000 people each
year is not safe”. Second, transport has to mitigate
its negative impact on the environment and on human
health, by reducing energy consumption and
pollutant emissions, in particular the concentration
of PM10; the presence of such a substance, which is
seriously harmful to human health, still exceeds the
limit permitted in many European countries, among
them Italy.
Through more ambitious proposals, the European
Parliament has decided to make an important

contribution to the global vision of the future of
transport. By a majority of 599 votes, it adopted its
position on the future transport policy and asked
the European Commission to set up clear objectives,
to be achieved by 2020. Parliament stressed,
above all, that the future transport policy must
increase the safety of all users. As one of the targets
to be achieved in the forthcoming ten-year
period, it recommended a 40% reduction in the
number of deaths and serious injuries involving
active and passive road transport users. The European
Parliament recognises that several measures
must be adopted for attain this goal. First of all,
it urges a fostering of research and development
of technologies able to increase
road safety. For this purpose, one of
the priorities of the European
agenda is to support research
for an intelligent, interoperable
and connected transport
organisation and
safety systems, such as
ITS. Parliament is convinced
that the deployment
of such technologies
must be ensured
in all member states.
Along the same lines,
considering that the
tyre is an essential element
in improving road
transport safety, as it is
the sole point of contact
with the road, the available
technologies in order to obtain
basic information about
the vehicle-road interaction
must be applied to road transport
with a view to reducing accidents
and potential risk under adverse weather
conditions.
Progress should also be made with regard to environmental
aspects. The European Parliament has
set a 20% reduction in CO 2 exhaust emissions from
passenger and freight road traffic. The committee
on the environment and the one on industry explained
that in their opinion, any new solution
to decrease CO 2 emissions by road transport should
be considered without any precondition. All possible
solutions should be applied to achieve this
goal. More in detail , the environmental committee,
, considering the increase in respiratory, cardiovascular
and other diseases, as an effect on health,
of air pollution emitted by transport, says that the
most advanced emission reduction technologies
Pirelli Eco Technology
for sustainable transport
The international convention ‘Sustainable transport:
energy, health and the environment. Problems
and solutions’ took place in Rome on 24 June with
the contribution of Pirelli, organised by VERT – Verification
of Emission Reduction Technologies - the
cross-border scientific association for the control
of polluting emissions. During her opening address,
Italian Minister for the Environment, Stefania Prestigiacomo
presented her government’s national plan
for the fight against smog, embodying harsh and
rigorous measures. The initiatives against heavy
transport comprise a system of filters to be installed
in diesel-engined commercial vehicles which will
permit the investment of one euro in return for five
in terms of social and health costs, as these vehicles
produce 60% of traffic smog, the numbers of which
are worrying: in the 15 most populous Italian cities,
PM10 kills 6,000 people a year (source Nomisma).
“Anti-particulate filters are the most immediate and
effective anti-smog systems currently available. In
Lombardy, 7,000-8,000 trucks and buses have been
fitted with such filters, compared to the 1,500 in the
rest of Italy”, said Bruno Tronchetti Provera, president
of VERT, and managing director of Pirelli Eco
Technology. Fausta Ciccarella
Bruno Tronchetti Provera, managing director of Pirelli Eco
Technology, and Stefania Prestigiacomo, Italian Minister for the
Environment
must be applied to all vehicles currently on the road.
Old generation engines can be adapted by using filtration
technology, with the objective of reaching
the low level of ultra-fine solid particle emissions
of new vehicles.
No. 58 — September 2010
5

Road safety
Pirelli's Italian campaign
A perfect
journey
with
‘Safe&Go’
The initiative was unveiled in
Rome on 16 June in the presence
of the Minister of Transport,
Altero Matteoli, Pirelli chairman
Marco Tronchetti Provera and the
president of Autostrade per l’Italia,
Fabio Cerchiai
Marco Pieri
The poster along the motorways of the Italian campaign 'Safe&Go'
6 PIRELLI WORLD
Pirelli has always focused its
product research on matters
linked to ecology and
performance, safety and a sporting
spirit. The Cinturato is an
example of precisely that, a tyre
developed to meet the needs of
sustainable mobility which responds
to three necessities: ecocompatibility,
energy-money saving
and safety.
When motorists travel, it is essential
that they are familiar with the
correct use and maintenance not
only of the car but also its tyres,
the only contact between the vehicle
and the ground.
And to make the greatest possible
number of motorists aware
of just how much difference correct
maintenance can make between
avoiding an obstacle and
hitting it, Pirelli is running an
operation throughout Italy during
the most critical periods of
the summer exodus, providing
free informative support and
checks on the state of travellers’
tyres.

The initiative involves the installation
of mobile Pirelli Safe&Go
workshops in the key service areas
of Italy’s motorways or motorways.
There, the company’s
specialist technicians meet motorists
and provide them with
free checks on the state of their
cars’ tyres during the most
critical weekends of
the summer. The
Pirelli specialists illustrate
in a clear
and simple manner
why it is important
to maintain tyres
properly.
The Italians are generally
enthusiastic about their cars,
but often do not stop and think
about the fundamental road safety
role of their tyres. Maintaining
tyres periodically and knowing
their specific characteristics are
basic elements in guaranteeing
safety in all situations, increasing
mileage potential and saving
money.
Pressures, integrity, seasonal nature
and remaining tread: these
are the four elements on which
the Safe&Go campaign is based
to make motorists more aware of
road safety. But Pirelli’s commit-
The 'Safe&Go'
communications
campaign
60
Safe&Go centres installed in
service areas along
the motorways
1,200
radio advertisements
82
national press advertisements
150
posters along the motorways for
two months
10 million
web impressions
ment to safety does not stop there.
As well as the information awareness
initiative on the motorways,
motorists can visit members of
Pirelli’s official tyre dealer network
– over 1,000 specialists
throughout the country – where
drivers can receive more information
on the role of tyres
as safety devices and a
free tyre check before
setting off on their
holidays.
To encourage greater
awareness among
motorists, Pirelli also
decided to contribute
significantly to the scrapping
of tyres which are no
longer safe by instituting a ‘Pirelli
Incentives for Safety’ campaign.
Before leaving on holiday motorists
can obtain awards of up to
€170 by going to an official Pirelli
dealer to replace worn
tyres that could compromise
the control of
the vehicle.
A partnership with
Autostrade and Telepass,
supporters of the
initiative, has enabled
the company to make
a further communications
push through
panels along the Italian
motorway network
with variable messages,
suggesting motorists
should check their tyres
more frequently and with
promotional material being
distributed from Punti Blu.
The campaign was announced
at a press conference
in Rome on 16
June in which Pirelli
chairman Marco Tronchetti
Provera took part,
together with the Minister
of Transport, Altero
Matteoli, and the president of
Autostrade per l’Italia, Fabio Cerchiai.
During the meeting, the
two companies shared with jour-
A9
Belluno A23 Treviso
A26 A4
A27
Brescia
A8
Torino Milano Padova
A1
A26
Venezia
A7
A13
A10 Genova
Bologna
Ravenna
A12 A1
A14
Pisa Firenze
A11
Ancona
A1
A14
Civitavecchia
A1
A12
Roma
Pescara
A14
A1
A20
A14
Napoli A16
Taranto
'Safe&Go'
workshops
Free tyre checks and
lessons in maintenance
at the 60 Safe&Go mobile
workshops spread along
the Italian motorway
network
nalists their commitment and
reciprocal initiatives of making
motorists more aware of road
safety.
No. 58 — September 2010
7

Night Dragon
Custom touring
From America to Europe
During the Swiss
Harley Days sponsored
by Pirelli, the Night
Dragon custom
V-Twin tyre was
launched to European
motorcyclists
Kevin Allen
T
he new Night Dragon
custom touring motorcycle
tyre from Pirelli
took claim as the undisputed
star of the
19th Annual European H.O.G. rally
and Swiss Harley Days, held in mid-
July between Lugano and Campione
d'Italia. Pirelli’s exhibition space was
a piece of the heavily trafficked lakeside
avenue then transformed into
famous American cruising ‘strips’
like those found in popular U.S. biker
destinations frequented by Harley-
Davidson enthusiasts.
The weekend’s atmosphere was
filled parades, parties and music, and
a record attendance of nearly 60,000
fans, a quarter of which parked their
8 PIRELLI WORLD
rolling museums along the lakeside.
A dozen fortunate European and
American press and VIP clients enjoyed
an exclusivity at this annual
event with invitation to the welcome
party with 500 Harley Owner’s Group
(H.O.G.) members, organized at the
Casino of Campione d’Italia, which
was proceeded the following day by a
spectacular mountain ride ending at
Pirelli’s exhibition along the lakeside.
Late Saturday afternoon, Harley riders
demonstrated their spirit of riding
together when a parade of more
Pirelli’s Night Dragon exhibition
on the banks of Lake Lugano
than fifteen hundred bikes rode
through the streets of Lugano.
The new Night Dragon has been
created by Pirelli for the exclusive
custom V-Twin motorcycles and
performance versions of the legendary
Harley-Davidson. Technological
innovation and high performance,
grip and handling and
an aggressive look for riders pay
attention to the style and aesthetics
of their motorcycles. Italian
at heart, made with the American
passion of custom cruising.

Pirelli Truck
Alexandria’s factory expansion
Growing
in Egypt
Pirelli World interviews Karim Gaddas,
CEO Pirelli Egypt, after the inauguration
of the new area of the Pirelli Truck factory
in Alexandria on 18 July
Cinzia Storti
What does the factory expansion
project consist of?
Karim Gaddas Last year, Pirelli
celebrated the 10th anniversary
of its presence in Egypt, years in
which the plant’s truck tyre production
capacity has been more
than quadrupled. This substantial
growth of capacity, together
with the qualitative evolution of
our products, has enabled us to
acquire a strong competitive position
in the local market and to
develop our export activities to
EMEA countries. The current expansion
project is a further important
stage in the consolidation
of Pirelli’s presence in the area,
which will enable us to bring our
production capacity up to one million
tyres a year by the end of 2011.
Which truck tyres are made in
Alexandria? For which markets?
K. G. In Egypt we produce all
steel tubeless and tube type tyres
for the North African, Middle East
and European markets, the latter
accounting for about 50% of our
exports. As part of the range renewal
process and focus on quality,
R&D has developed the new
range of Diamante (Diamond)
products for Egypt, which are
achieving considerable market
success for their optimum qualities
of resistance to loads. By the
end of the year, we will be making
the Diamante Nero (Black Diamond)
range, which is aimed at
the super premium market segment
due to its high mileage and
comfort characteristics.
In Egypt, Pirelli is known for its
attention to employee training.
How did that come about?
K. G. Focus on quality, cost leadership
and HSE cultural development
are accompanied by training
programmes at all the organisational
levels.
The staff is exposed to training
programmes for growing awareness
of matters of priority for the
organisation and to professional
courses with the purpose of improving
management or technoprofessional
ability. Ad hoc development
programmes are also
created for talented young people
in coordination with central HR.
At an industrial worker level,
training focuses on the awareness
of quality and safety.
As well as tutoring our own
people, we also have a training
centre for our dealer and
fleet clients in which about 400
people are trained each year in
truck tyre fitting, balancing and
maintenance. This is one of the
most important activities we
run to support the professionalism
and promote the image of
our authorised Pirelli dealers in
the market, and at the same time
strengthens their loyalty to our
company.
No. 58 — September 2010
9

Product Development
In partnership with Pagani Automobili
When science
meets art
Avant-garde technology and design. Pagani cars
are unique, the holders of two records established
on the Nürburgring in partnership with Pirelli
Cinzia Storti
Your company produces an
average of 20 cars a year, each of
which costs over a million euros.
What makes a person buy one?
Horacio Pagani: Paganis are
objectively unique cars from both
the technological and aesthetic
points of view. Our avant-garde
technology and materials – principally
titanium and carbon fibre
– are inspired by aeronautics and
Formula 1 and are particularly
sophisticated. We also take great
care over design, right down to the
smallest components to be able to
produce such exclusive cars.
It is the philosophy of Leonardo da
Vinci, the Renaissance artist who
knew better than any other how to
10 PIRELLI WORLD
unite scientific research with the
love of art, that inspired the design
and construction of our cars.
In short, art and science can live
together, even in a car. Achieving
this synthesis today is certainly
easier due to the technology available
to us.
I would say people buy our car out
of passion, a choice of the intelligence
of the heart.
The Zonda F, which you drove to
Bicocca today, is fitted with P Zero
tyres. How did that partnership
with come about?
H.P.: The first concrete projects
date back to 2005. Before that we
were not ready to work with a
company like Pirelli, despite already
having many things in common.
For example, Juan Manuel
Fangio, the legendary Argentinean
racing driver, winner of three
Formula 1 World Championships
with Alfa Romeo, Maserati and
Pirelli. Fangio has been my idol
since childhood: it is he who en-

abled me to come to Italy and realise
my dream.
Our collaboration with Pirelli
went through an especially important
period in 2007. The objective
was to break the Nürburgring lap
record of 7 minutes 32 seconds, established
by a Porsche Carrera GT.
When we arrived at the German
circuit we were confident, certainly,
but we did not think we would
break the record by as much as we
did, five seconds. This, for a small
constructor like us, was certainly
a surprising result. To be supported
by Pirelli was a decisive factor
for us, because the objective was
achieved most of all thanks to the
yield of the tyres, which alone contributed
to reducing the time by
3-4 seconds. And I also believe that
working with us is stimulating
for Pirelli, because we are a small
constructor that asks for new solutions
adequate for our product in a
short period of time, which com-
The Zonda
and P Zero records
On Wednesday 30 June, the Pagani Zonda R broke
the record on the Nordschleife of the Nürburgring in
Germany by covering the 20.83 km lap in a time of
6 minutes 47 seconds, fitted with Pirelli P Zero Slick
tyres in sizes 265/645-19TL front and 325/705-20TL
rear. The car broke the record, set a few months earlier
by another extreme supercar on a competitor’s
tyres. The Zonda’s was a time made possible by its
optimum grip on the asphalt and its ability to transfer
all its power to the ground through the P Zero
Slicks, which were designed exclusively by Pirelli for
the Modenese supercar.
The tyres were produced in Milan on the first line
prototype Next MIRS, the Pirelli technological process
par excellence, which creates ultra-high performance
and motor sport tyres. Other factors that contributed
to such high performance grip include the
car being 200 kg lighter than the road-going version
of the Zonda R, the carbon-titanium chassis, lightened
suspension, lower centre of gravity, a reduction
in polar inertia and optimum aerodynamic load.
prises very special characteristics,
like the rigidity of the chassis, the
refined suspension etc.
What fuels your continuous
technological and aesthetic
research?
H.P.: Passion and love of my work.
The desire to do well, to continue
to exceed oneself. The cars we build
could be considered toys, pure objects
of desire. The success of our
Zonda on You Tube and in video
games shows that.
All in all, we also enter into the
imagination of motorists who are
not able to buy the car but must
still have a chance to dream.
What is the next object of desire
that Pagani Automobili will be
launching onto the market?
H.P.: The new car, the launch of
which will take place in a few
months, will be even more extreme
than recent models. The
materials with which it is built
are the result of a continuous research
for a better shape and increasingly
higher performance.
The most significant example is
carbo-titanium, a composite material
that brings together carbon
fibre, which is rigid, with titanium,
which produces more safety.
Like all Zondas, it is a fast and responsive
car, able to forgive you if
you make a mistake, giving you the
chance to go back over your own
steps if, for example, you take a corner
in a rather hazardous way ... In
this, Pirelli tyres are ideal partners
for our car because they are sincere,
they communicate with the
car and with the driver, permitting
him to correct his manoeuvre, all
to the advantage of safety.
That is fundamental for a car that
flies along at 300 km/h ... almost
like a plane, which is what inspired
us to design the profile of
the new Zonda.
No. 58 — September 2010
11

PMS – Pirelli Manufacturing System
Worldwide training programme
Managing
to Lea(r)n
Designed in collaboration with Milan’s SDA
Bocconi business school, it involves 130 people
from all of Pirelli Tyre’s factories
Donatella De Vita
Two years have passed since
the Dresden Industrial
Convention at which the
company presented the Pirelli
Manufacturing System (PMS), a
programme of tools and methods
of lean working to apply in the
factories to improve productivity.
From that moment on, Pirelli has
achieved significant results: the
number of accidents at the place
of work has been reduced, product
quality has improved, efficiency
has increased and waste has been
reduced for an overall gain of
more than four million euros. The
PMS model, which has involved
about 10,000 employees from 2008
until today, has also contributed to
a greater uniformity between the
19 factories on the four different
continents due to the application
of a common language and of a
shared approach to the resolution
of technical and process problems.
Due to these notable results, with
the collaboration of the SDA Bocconi
business school in Milan,
the Managing to Lea(r)n training
course has started. It aims to insert
the ‘lean strategy’ into production
processes through a common
12 PIRELLI WORLD
management model of technical
and production factors and the
alignment of various experiences
of the factories. The programme
comprises four modules of three
days each for a total of 15 months.
About 130 people from all the Pire-
More than anything
else, Managing
to Lea(r)n means
to learn on the job
lli Tyre factories will participate in
the programme, sub-divided into
four intakes. The training modules
offer an in-depth examination of
PMS methodology (from the value
stream mapping process to the
methodology of problem solving
to groups of improvement 5S), and
the development of leadership
behaviour and competence in
managing people: how to always
communicate the priorities and
the whys and wherefores, listen to
and involve people, always offering
them challenging objectives.
More than anything else, Managing
to Lea(r)n means to learn on
the job. For that reason, the first
module is devoted to a visit to the
factories that are already using
lean thinking. Among them the
Merk pharmaceuticals plant in
Pavia, Italy, Electrolux near Milan,
the Honda Automobiles production
site in Santo Andrè and the
Parker Systems of Movement and
Control in Jacareí, both in Brazil.
Programme participants also
visited the hospitals at Florence,
Italy, and São Paolo, Brazil, which
have begun lean programmes. The
second rule inspired by Managing
to Lea(r)n is ‘you learn only by doing
the job, making mistakes and
trying again’. Every concept, model
and tool is, in fact, experimented
with in both a simulated manner
and directly in the Slatina, Breuberg,
Santo Andrè and Settimo Torinese
factories through a positive
exchange of experiences among
colleagues, who are more or less
experts. The Managing to Lea(r)n
programme, which began in January
2010, will conclude during the
summer of 2011.

World
Dossier
Back
to Formula 1
Getting ready for
the big competition
Into the Izmit
factory in Turkey
1913-2010:
a success story

Dossier Back to Formula 1
Ready for the big
competition
Pirelli will equip all the F1 world championship teams with
six different tyre typologies: four slicks for dry asphalt, a rain
tyre for downpours and another for damp asphalt
Davide Tammaro
P
irelli is ready to launch
into its new Formula 1
adventure. Due to the
technology and cooperation
with the teams, the
company was able to satisfy the conditions
imposed by the Fédération
International de l’Automobile (FIA)
14 PIRELLI WORLD
and the requests from the teams,
beating its competitors. “This new
challenge has begun with success”,
declared chairman Marco Tronchetti
Provera at the press conference
for the presentation of the agreement,
which took place in Milan at
the Fondazione Pirelli on Thursday
24 June. “It is nice that they have
chosen Pirelli as sole supplier in the
midst of other important competitors:
a success for Italian technology
and for all of our technicians”. The
sole supplier for the period 2011-2013,
Pirelli will make six different tyre typologies
available to the teams: four
slicks of different compounds and
destined for races on dry asphalt, a
rain tyre for downpours and an intermediate
for damp asphalt and
light rain. The various compounds
to be developed by Pirelli in the coming
months will be differentiated in
their performance and success of
the race will depend on the tyres
the teams choose.
From left:
Francesco Gori, general
manager Tyre & Parts Pirelli
& C and CEO and general
manager Pirelli Tyre;
Marco Tronchetti Provera,
chairman of the Pirelli
Group; Maurizio Boiocchi,
Tyre & Parts R&D director,
at the press conference for
the presentation of the F1
agreement, which took place
in Milan on 24 June

Innovative technology
Even if the Grand Prix in which it
last competed dates back to 1991,
over those 20 years Pirelli has
always been committed to the
most prestigious car manufacturers
on all the circuits of the world,
experimenting and testing new
developments. “Pirelli technology
for tyres of ultra-high performance,
an area in which we are
the unquestioned leader, enables
us to affront a sport like Formula 1
with serenity. Today, tyres for the
supercars of Aston Martin, Lamborghini
and Porsche embody a
much evolved technology that requires
machines, processes, compounds
and studies which are
those at the basis of our return to
Formula 1”, declared director general
Francesco Gori when replying
to journalists attending the
press conference. Not only that,
as Maurizio Boiocchi, Pirelli R&D
Press clippings
The new Formula 1
agreement
in the European
and international
newspapers
Pirelli named sole supplier
for Formula One from 2011
Pirelli, an Italian manufacturer, has been
appointed as the single tyre supplier for
the Formula One world championship
for three years starting from 2011, the
Federation Internationale de l’Automobile,
or F.I.A said on Wednesday...
Pirelli, which has supplied
tyres exclusively for
the GP3 championship
this year, will also produce
tyres for the GP2
championship from 2011, becoming the sole
provider of tyres for the most prestigious
single-seater championships in global motorsport
director explained, “The methods
of design and simulation that we
have for high range vehicles coincide
with those of Formula 1,
consequently the commitment of
supply to GP3 of last year brought
us closer to the world of single
seater cars, which we have further
intensified. Our methods,
Pirelli équipera la formule 1,
Michelin se désiste
...Pirelli n’est pas un inconnu dans les
paddocks. Le groupe milanais s’est
notamment illustré dans les années 1980
en équipant des écuries comme Lotus,
Brabham et Benetton. Sa dernière victoire
remonte à 1991 au Canada...
...Außerdem gibt es andere Reifen. Pirelli
löst als Alleinausrüster Bridgestone ab.
Der Entscheidung war ein monatelanges
Tauziehen vorausgegangen. Um den
Vertrag hatte sich
auch die französische
Firma Michelin
beworben…
our abilities are, therefore, adequate
with which to affront this
undertaking”.
With a view to a return to the maximum
formula of single seater racing,
Pirelli’s R&D is already at work
and has produced its first Formula
1 tyre, a demonstration of the company’s
great speed of reaction. A
Pirelli to steer
Formula One
...The majority of the
teams favoured the
Italian company
which last supplied
F1 with tyres in the
1990s...
Pirelli, the Italian tire maker, won a threeyear
contract to supply tires to Formula
1 teams, giving it marketing visibility
without affecting its financial targets, the
company said...
No. 58 — September 2010
15

Dossier Back to Formula 1
Pirelli team will be exclusively devoted
to the development of tyres
destined for Formula 1, which will
be produced in the motor sport
area of the Pirelli factory at Izmit,
Turkey, the production of which is
exclusively motor racing tyres.
The team, constituted with internal
resources, will be formed of technicians
and researchers with mature
experience in all the most important
competitions and who have
developed winning tyres for the
Rally and Superbike world champi-
What are the most important challenges that face
R&D in the development phase of tyres for Formula 1?
Maurizio Boiocchi For us, time is the most important
challenge. In fact, to develop the best tyres possible, it is
a priority that we built up our bank of knowledge of the
tracks, the conditions of the tyres’ use on current F1 cars
etc. In this, the association of F1 teams (FOTA) is supporting
us with all the non-confidential
data useful to our development work.
As far as tyre technology is concerned,
we believe we have all that is necessary
as a result of the work we carry out daily
with the top car manufacturers at a
technological level and with vehicles
of exceptionally high performance, the
methods of design (modelling, testing,
processes, materials) which demand sophisticated technologies,
comparable to those of F1.
What are the winning characteristics of the new P Zero?
M. B. The great spirit of motivation of the whole
company, which pervades every area. We are working
on the product with clear ideas of the structure, materials
and production times, which are uncommon.
We will be able to say more after the first track tests,
but for now we want to concentrate on our objectives.
16 PIRELLI WORLD
onships, the Rolex Sports Car Series
in North America and numerous
GT championships, as well as single
marque competitions. Made up of
an international staff, the team will
be based in Milan, home of the Pirelli
Tyre Research and Development
Centre, which has always been the
heart of Pirelli Group technology: it
comprises 1,000 researchers in five
centres across the world. As confirmation
of the strategic role of innovation
to the company, Pirelli
Tyre allocates an annual 3%-4% of
its turnover to R&D, the highest percentage
of all manufacturers in the
world’s tyre industry. In particular,
sports activities benefit the innovations
introduced by Pirelli R&D in
tyres of high and ultra-high performance.
World level visibility
In addition, entering Formula 1
will have no impact on the company’s
budget, which can sustain
its cost of participation in the F1
world championship without
‘Time is the most
important challenge’
Interview with Maurizio Boiocchi,
Tyre & Parts R&D director
Cinzia Storti
In which activities is R&D involved from now to the
start of the new championship?
M. B. In the development of the F1 and GP2 tyres as
far as choice of compounds and materials are concerned,
but more than anything else on the production
structure. We are improving our Turkish factory
to the characteristics of these new tyres for quality,
precision and reproducibility – fundamental factors
by which to give exactly the same material to all
teams.
Let’s talk about the Pirelli team devoted to Formula
1. How will it be made up? Where
will it work? What will it do?
M. B. The team has been put together.
We still lack a few details,
but we are well enough ahead. Design
is in Milan with personnel
100% devoted to that aspect. Here,
we speak of experts in modelling,
materials, compounds, processes,
testing and laboratories.
But all of that is not enough without a production department
of an exceptionally high level, able to turn
studies into reality and provide the teams with the
maximum in terms of the product: and that is the
production department in the Izmit factory. I want
to make it clear that the whole F1 team will be provided
with the highest levels of competence available
within the group, and as a consequence our team will
be an international one.

problem. In short, a great return
for a global company, which has
broadened its horizons, without
the prohibitive costs of 20 years
ago and with a much more vast
stage. Pirelli’s participation in
Formula 1 will ensure important
media coverage worldwide. About
two billion spectators and viewers
watch Formula 1, of whom one
billion are in the so-called emerging
areas such as Latin America,
the Middle East and Asia Pacific,
where the Grand Prix calendar
Photography by Carlo Furgeri Gilbert
envisages numerous events and
in which Pirelli has grown considerably
in recent years. Exceptionally
high numbers compared to
the 150 million people who watch
world championship rallying, to
which Pirelli will be the sole tyre
supplier until the end of next
year and from which it will draw
the necessary resources to affront
the F1 adventure. There will be no
negative financial impact on the
company, in part due to the new
economic scenario, which has im-
Izmit, making
motorsport tyres
posed a realistic and collaborative
approach on the competing teams
as far as sharing industrial and logistical
costs are concerned.
“We are enthusiastic”, concluded
Marco Tronchetti Provera, “and
that is especially true for the young
people who are in Pirelli, and who
can be part of an adventure in a
company that shows it is young
despite its 130 years of history”.
So spectacle is guaranteed next
season in the world’s maximum
motor racing championship.
Pirelli Formula 1 tyres
will be made in the
motor sport area of
the Pirelli factory
at Izmit, Turkey, the
production of which
is exclusively motor
racing tyres
No. 58 — September 2010
Photography by Carlo Furgeri Gilbert
17

Dossier Back to Formula 1
A history
of success
A century of victories with the most prestigious Italian and
international car manufacturers and teams, from Ferrari to
Maserati, Lotus to Brabham with the most successful drivers
in history, among them Achille Varzi, Juan Manuel Fangio,
Nelson Piquet and Michael Schumacher, on the world’s most
demanding circuits, from Italy to South Africa, from Canada
and South America to Australia
Davide Tammaro
1913
Pirelli wins its first international GP
French driver Georges Boillot won the Grand Prix of
France in a 5.6-litre Peugeot on the Picardie circuit
at Amiens on 12 July. Second came Jules Goux in another
Pirelli-shod Peugeot. This was the Italian tyre
manufacturer’s first international Grand Prix win.
18 PIRELLI WORLD
1922
Bordino wins at Monza
The circuit of Monza was inaugurated
in September 1922 with the
Grand Prix of the Automobile Club
of Italy, won by Pietro Bordino in
a 6-cylinder Fiat 804 fitted with
Pirelli tyres.

The Stella Bianca
Introduced in 1927, the Stella Bianca tyre was a synthesis
of Pirelli technological solutions of the 1920s:
its straight sidewalls, new cord carcass material
without wefts and the balloon: it was the low pressure
tyre.
Used in the United States since 1907, the straight
sidewalls combined bead wire and systems that
resolved the problem of fitting the tyre to the rim.
In addition, Stella Bianca was constructed of a cord
carcass without wefts. With the arrival of cord,
a manufacturing process was introduced using
semi-automatic machines which meant that the
rubberised textile plies could be placed diagonally
on a toric template, turning up the bead area, while
the various plies were laid across each other: this
is the cross ply method, a form of tyre construction
that remained in use until the ‘50s and beyond. Vulcanisation
took place using an inflatable tube: the
tyre was placed in the mould, no longer with the
metallic template on which it was built, but with
a tube kept inflated by steam for the entire vulcanising
cycle, which kept the tyre pressed against
1924
On 17 August 1924, Milanese driver Giuseppe Campari won the French GP
at Lyon in an Alfa Romeo. The car was equipped with Pirelli tyres, which
were already using ‘cord’ technology, the carcass plies without wefts to
ensuring greater reliability.
The 1924 season began a cycle of victories for the Alfa Romeo-Pirelli duo
with drivers of the calibre of Campari, Antonio Ascari and Gastone Brilli
Peri, who won on the circuits of Italy, France and Belgium.
its mould, eradicating
deformation and waving
typical of canvass
reinforced covers.
The balloon, the technological
innovation
that increases the section
and reduces the
diameter of rims, was
also able to reduce the
weight of the rotating
mass to the advantage
of comfort.
Tread patterns also took
a giant step forward A Stella Bianca advertisement
with the Stella Bianca in the magazine L'autoaccesso-
and would remain more
rio, January 1934
or less unchanged until
after the Second World War. The new tyre’s tread design
had a sophisticated combination of bi-trapezoidal
blocks tightly linked to each other by small robust
“bridges” to avoid them being torn at high speed.
1925
Gastone Brilli Peri wins
the world championship
at Monza
Brilli Peri took victory at Monza
and won the first World Grand
Prix Championship. The Pirelli-Alfa
Corse team continued its winning
ways throughout the 1930s
with Varzi, Carlo Pintacuda and
Tazio Nuvolari: the Pirelli Stella
Bianca tyre earned itself the epithet
‘tyre of victory’. On the cover
of the first edition of Rivista Pirelli,
Orio Vergani wrote, “All ages
have their hermits and their religions.
It seems that Nuvolari is the
hermit of speed”.
No. 58 — September 2010
19

Dossier Back to Formula 1
1933
Giuseppe Campari won the Grand
Prix of France in a Maserati 8C,
a car with which Pirelli wrote
another chapter in motor racing
history.
1939
Italian driver Luigi Villoresi won
the Grand Prix of South Africa at
the wheel of a Maserati 6CM.
20 PIRELLI WORLD
1946
Villoresi returned to Grand Prix
racing with Maserati-Pirelli in
France in 1946 to win the GP of
Nice, then again in 1948 with Giuseppe
Farina as his team mate.
1952
Alberto Ascari won
the world championship
in a Ferrari-Pirelli
Alfa Romeo retired from Grand
Prix racing in 1952, leaving the
way clear for rising star Maserati.
1949
Enzo Ferrari entered his Ferrari 125 in GP on Pirelli tyres driven by Alberto
Ascari, so forming an inseparable and victorious trio of Ascari-
Ferrari-Pirelli that won almost everything in 1952-53, including the two
years' world championships

1956
Pirelli's retirement
from racing
Pirelli retired from Formula 1. Its
technological efforts were switched
to a new, revolutionary tyre called
the Cinturato: the era of the Stella
Bianca and Stelvio was over.
The Stelvio
Pirelli launched the Stelvio in the
early ‘50s. It was a tyre that embodied
major new developments, especially
in the materials from which it
was made. The tread pattern, a more
aggressive and compact evolution
of the Stella Bianca’s, was its most
obvious new characteristic, earning
it the epithet “the tyre that bites
the road”. As a result of Alberto Ascari
winning the 1952 and 1953 world
championships in his Stelvio-shod
Ferrari 500 F2, the tyre would soon
be known – like its predecessor – as
“the tyre of victory”. Collaboration
with Ferrari in the development of
the Stelvio, which could best withstand
the sporting demands of the
car from Maranello, was perhaps
Back cover of Rivista Pirelli, the first major example of a modern
no. 5, October 1953
partnership between a car constructor
and a tyre manufacturer: so the
original equipment concept soon
became synonymous with technological excellence. In just a
few years, Fiat launched the 600, 500, 1100 and Bianchina; Lancia
the Aurelia and the Appia. Pirelli responded to this model
diversification by gradually broadening its tyres family to cover
all the needs of the car makers. The Cinturato era is starting.
1957
A trio of success,
Fangio-Maserati-Pirelli
Fitted with Pirelli tyres, Maserati
signed its greatest driver, Argentinean
Juan Manuel Fangio, who
had already become famous with
Alfa Romeo, with whom he won
the 1951 Formula 1 World Championship
for Drivers. Fangio also
drove the Maserati 250F to the
world titles of 1954 and 1957, the
latter with Pirelli “warehouse leftovers”
after the Milan manufacturer
had retired from racing.
No. 58 — September 2010
21

Dossier Back to Formula 1
1981
Pirelli returned to Formula 1 with the Toleman-Hart
TG 181 sponsored by Candy, the Italian white goods
manufacturer. The team’s drivers were Brian Henton
and Derek Warwick, who had already been protagonists
of an outstanding F2 season the previous
year, culminating in Henton winning the European
championship in a Toleman-Hart TG 280.
In July of that same year, the Arrows-Beta team
with drivers Riccardo Patrese and Siegfried Stohr
(later replaced by Jacques Villeneuve) joined Tole-
The P7 tyre
The Pirelli P7 was the basis on
which the history of the modern
Pirelli tyre was built from the
mid-70s. It was of radial ply construction
with a rubberised steel
cord belt and was a new tyre revolution
from the geometry point
of view. In 1973, the Lancia Stratos
Rally needed a technological
invention to put down onto the
ground its 240 horse power. Pirelli
was able to harness the power
of the new Lancia by designing
a radial tyre with an extremely
wide tread but with sidewalls
lowered to just half, a guarantee
of maximum rigidity and, therefore,
maximum cornering power.
The Pirelli P7 first competed
in rallying on the Stratos in 1974
when they won their first world
championship, and the tyre was
later adopted for the road-going
Porsche Carrera, after which
along came the P6, the first low
aspect ratio tyre for mass produced
cars.
The ‘80s offered Pirelli a new
challenge: flexibility. As the
number of sizes increased, the
tread patterns diversified as did
the composition of the different
compounds: sufficiently automated
and flexible machines
were needed for their manufacture
to handle a product range,
22 PIRELLI WORLD
which was becoming increasingly
complex. They were years that
saw the diffusion of low profile
tyres in all motoring segments,
while their production process
became ever more automated.
man as Pirelli F1 tyre competitors, as did the Fittipaldi
squad with Keke Rosberg and Chico Serra from
the Italian G.P. Collaboration with Toleman-Candy
continued during the 1982 season, with the two cars
driven by Derek Warwick and Teo Fabi, as well as
support for Arrows-Beta and their drivers Henton
and Mauro Baldi. Other teams also joined the Pirelli
fold, Osella (Jean-Pierre Jarier and Riccardo Paletti)
Fittipaldi (Serra) and March (Jochen Mass and Raul
Boesel).
1983.
Elio de Angelis
in a Lotus-Pirelli

1984. Ayrton Senna made his debut
in a Toleman/Hart on Pirelli tyres
1983
Pirelli tyres equipped the Lotus
JPS cars of Elio De Angelis and Nigel
Mansell as well as the Derek
Warwick-Bruno Giacomelli Toleman-Candy
team. In 1984, the
company continued to fit its tyres
to the Tolemans. Driving the British
car, said Pirelli technicians at
the time, was “an extremely talented
tester who, despite his tender
age, gives us a mine of useful
information on the handling of
the car and tyres”. That young test
driver was Ayrton Senna Da Silva.
Bruno Giacomelli
in a Toleman-Hart-Pirelli
No. 58 — September 2010
23

Dossier Back to Formula 1
1986
Pirelli retires from Formula 1
Gerhard Berger won the Grand
Prix of Mexico in a Pirelli-shod
Benetton-BMW.
1989
Pirelli returns once more to the
Formula 1 circuits with Team
Brabham (Stefano Modena), Minardi
(Pierluigi Martini), Dallara
(Andrea De Cesaris) and Bernd
Schneider Zakspeed.
1991
As well as Benetton, whose number
two driver was Michael
Schumacher, Pirelli tyres also
equipped Brabham, Scuderia Italia
and Tyrrell. Nelson Piquet won the
Canadian G.P. in a Benetton-Ford
on Pirelli tyres.
24 PIRELLI WORLD
1986, Benetton, Berger.
The P Zero
The ultra-high performance P
Zero inaugurated a new Pirelli epoch.
Its single tread pattern was
divided into three different designs
that co-existed side-by-side:
one was deeply grooved for rain,
another was an intermediate for
damp road surfaces and the slick
area was completely smooth for
the dry.
But it was not until the 1987 Rally
of San Remo that this latest marvel
from Pirelli finally competed,
fitted to the winning Lancia Delta
HF 4x4 driven by Miki Biasion.
Meanwhile in July 1987 Maranello
celebrated Ferrari's 40th anniversary
with the production of the
unrepeatable F40: a supercar of
480 hp, 324 km/h and a price of 360
1991,
million lire. And for that phenom- Nelson Piquet in a Benetton-Ford
enon, which was unique in the
history of motoring, Ferrari wanted the P Zero at all costs.
So Pirelli created a 17-inch diameter P Zero and was the first to introduce
the Z speed rating for cars capable of over 240 km/h. In addition,
the wondertyre's sidewalls were only 35% as high as the tyre was wide
and was in two different sizes for the same car for the first time, one of
them wider for the F40's rear drive wheels and a narrower one for the
front steering axle. That was the official birth of the Pirelli P Zero "family",
tyres synonymous with exceptionally high performance.
1991,
Michael Schumacher in a Benetton-Ford

Corporate social responsibility
Solidarity campaign
Concrete
help
for 4,000
children
Three schools will be rebuilt with the 200,000
euros raised by Pirelli’s employees worldwide and
the company together. The “My Time for Haiti”
fund supports the project of the United Nations’
High Commission for Refugees
Cinzia Storti
Haiti emergency after the
earthquake of January 12:
222,000 confirmed dead,
300,000 injured, 600,000 who have
left the capital Port-au-Prince;
about 100,000 buildings destroyed
and 190,000 damaged.
Pirelli responded with ‘My Time
for Haiti’, a fund raising campaign
that involved almost
30,000 employess across the
world. Launched last March, the
initiative raised 200,000 euros,
of which 86,000 euros were donated
by employees who gave one
or more hours of their working
time, with the rest added by the
company.
Among the initiatives promoted
by Global Compact, the world
forum of the United Nations to
which businesses and organi-
The logo of Pirelli's fund
raising campaign
in support
of Haiti
sations throughout the planet
belong to contribute to the construction
of a ‘more inclusive
and sustainable global economy’,
Pirelli has chosen to finance a
project of the United Nations
High Commission for Refugees
(UNHCR), which has been on the
island of Haiti since the week following
the earthquake.
By the end of the year, four thousand
Haitian children will be able
to return to school thanks to Pirelli
and all the Group’s employees, who
have supported the reconstruction
of three schools – two in the city of
Belladère (Ecole Atenoir Furmin and
Ecole Congreganiste Marie Jeanne,
filles de Marie and one in Anse-à-
Pitre (Anse-à-Pitre Liceum), making
available new classrooms, toilet facilities
and all the scholastic materials
necessary to ensure the children
will be able to study in a safe and
comfortable environment.
Exclusively financed by Pirelli
and its employees, the project is
already under way. Reconstruction
work has begun at the three
schools and is being constantly
monitored by the UNHCR; it will
be completed by 31 December
2010.
No. 58 — September 2010
25

Green performance
Sustainability Report
All the
sustainability
numbers
An interview with Filippo Bettini, the Pirelli
Group’s sustainability and risk management
director, on strategic choices and the results
of the Group’s sustainable growth
Cinzia Storti
Sustainability is a word that
has today become part of the
multinationals’ common parlance.
What specific significance does it
assume to the Pirelli Group today?
Filippo Bettini At Pirelli, sustainability
affects all the company’s decisions
and implies a constant monitoring
of the economic, social and
environmental impact of our daily
26 PIRELLI WORLD
activities. Business ethics, the quality
of relations with all the interest
bearers (the stakeholders), plans for
the improvement of the environmental
performance of products
and process, activities of integration
with local communities, monitoring
the respect for human rights,
of work and the environment in the
supply chain with particular atten-
tion to foreign countries in the international
community considered
at risk in those matters.
And again internal procedure to
guarantee transparency and traceability
of decisions: a clear example
of just how sustainability itself is
a composition of common values
and transverse methods between
the various company functions. It
is a really widespread business culture.
But it is also an instrument of
risk prevention. A competitive lever
which, improving the processes and
products, defines relations with clients
and stakeholders. An example?
Green performance, the strategy
of green growth within the Group.
But being sustainable brings with it
the need to monitor one’s own economic,
social and environmental
performance and the adequacy of
one’s own plans for continuous improvement
by the external community.
Shareholders, media, financial
analysts of sustainability, among
others, evaluate us with attention.
We can recall with pride that Pirelli
has been the world leader in sustainability
in the ‘auto parts and tyres’
sector of the Dow Jones sustainability
indices for three consecutive years.
The strategic importance of this
choice, after years of commitment
to Corporate Social Responsibility
(CSR) has now led Pirelli to create a
specific sustainability division.

The Group’s 2009 sustainability
balance sheet has just been
published. Who is it aimed at?
What are its main features?
F. B. The sustainability balance
sheet is aimed at all stakeholders
and is integrated within the annual
financial report of the Group.
The information and data is certified
by third parties for maximum
transparency. And every chapter
specifies whether or not the objectives
set the previous year have
been met, and new
ones are stipulated.
For example, the previous
Pirelli balance sheet
declared as one of its
objectives that the sale
of green performance
products would increase
from the 20% of the total
by the end of 2008 to 25% by
the end of 2009. This year’s
target has been met in full
and the objective of reaching
40% of green products
out of the total produced by
the end of 2011 has been confirmed.
With some satisfaction,
we have also been able to present
a statement showing a notable
reduction in the consumption of
water over the last two years and a
great decrease in refuse produced
by the Group during the same period.
And with reference to the supply
chain in countries at risk, for
2009 Pirelli declared its objective of
commissioning from an independent
and specialised company the
verification of respect on the part
of its suppliers, their parameters
of sustainability envisaged in standard
SA8000® in the Social Responsibility
Policy for Health, Safety and
Rights at Work, Environment and
in the Pirelli Ethical Code. Seventytwo
verifications have been carried
out on 72 suppliers operating in
10 countries in which the Group
has activities, which were Argentina,
Brazil, Egypt, China, Romania,
Turkey and Venezuela or acquires
natural rubber (Brazil, Indonesia,
Malaysia, and Thailand). The new
objectives are multiple, like for example
a reduction in energy consumption
at the tyre and steel cord
production sites of minus 6% in the
three years 2010-2012. For all the
other objectives, I suggest you look
at the text of the balance sheet as
there are many of them and all of
them merit consideration.
SUSTAINABILITY REPORT EXTRAORDINARY SESSION
CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ REPORT PRELIMINARY INFORMATION
Water Consumption
Targeted measures continued in 2009 to streamline the water consumption of production units,
which substantially confi rmed specifi c consumption, while water consumption for the entire
Group fell by 12% from 2008.
WATER - CONSUMPTION
20,0E+6
18,0E+6
16,0E+6
14,0E+6
12,0E+6
10,0E+6
8,0E+6
6,0E+6
4,0E+6
2,0E+6
000,0E+0
Water – total consumption [m³]
62 PIRELLI & C. S.p.A. MILAN
2007 2008 2009
WATER – DISTRIBUTION OF CONSUMPTION – PRODUCTION SITES 2009
8,2%
Steel Cord
WATER – WATER SOURCES – GROUP 2009
14%
Water from other sources
75%
Water from on-site wells
20,00
18,00
16,00
14,00
12,00
10,00
8,00
6,00
4,00
2,00
0,00
What is the role of the employees
in company sustainability? How
important is their involvement?
F. B. Their involvement is fundamental.
The employees are the
company. Comply with the rules,
be proud to be part of a business attentive
to its economic, social and
environmental impact, participate,
each within his or her own role, in
company sustainability plans, in
the concrete daily activity; they are
all aspects connected to a correct
interpretation of sustainability:
for those who define the new policies
and their implementation by
all employees, for those who work
on the product, on processes and
Specific Consumption [m 3 / ton PF]
Specific Consumption
of Production Sites
[m
Group [%]
3 / ton PF]
0,2%
Eco Technology
Production Sites
91,6%
Tyres
11%
Water from public system
WATER 2009 vs 2008 2009 vs 2007
Group Total - 12.3% - 14.0 %
Production sites - 12.8 % - 15.1 %
Production sites – Specifi c Consumption -0.7 % - 2.2 %
As far as water discharges are concerned:
— the volume of discharged industrial water could be estimated in the amount of 10 million
cubic metres, of which about 80% was channelled to surface catch basins;
— the remainder was discharged in the sewage system, to which non-industrial waste water
was channelled;
study how to always be more efficient,
for those who are required to
meet the needs of the employees.
Stick to the code of ethics, work
to reduce the waste of natural resources,
grow within the company
both in moments of crisis and
those of development: provide a
collective commitment at all levels
of the Pirelli Group.
At Pirelli Sustainability
affects all the
company's decisions
— before being discharged in the fi nal catch basin, industrial waste water was subjected to
periodic analysis, which did not reveal any violation of maximum concentrations allowed
by local standards.
Waste production and recycling
The total amount of waste generated by the Group fell sharply in 2009, not only in absolute
terms (-13.9%) but also in specifi c terms (- 2.1%), associated with an increase in the percentage
of recovered waste (+ 2.2%, see following graphs).
WASTE – TOTAL AND SPECIFIC PRODUCTION
Waste [ton]
140000 140
120000 120
100000 100
80000 80
60000 60
40000 40
20000 20
0 0
2007 2008 2009
RECYCLED WASTE [%]
Recycled waste [%]
90
80
70
60
50
40
30
20
10
0
2007 2008 2009
GROUP – DISTRIBUTION OF HAZARDOUS AND NON-HAZARDOUS WASTE - 2009
13%
Hazardous Waste
Group Total
Total Production Sites
Specific Waste Production
Sites [GJ /tonFP]
SECONDO BOOK − ANNUAL SUSTAINABILITY REPORT AT DECEMBER 31, 2009 63
In what way will an official
document like the sustainability
balance sheet be made available to
everyone?
F. B. First of all, via the web: it is
possible to download it from the reports
area of the sustainability section
on site www.pirelli.com. That
section also hosts the sustainability
channel, an innovative and interactive
instrument, which is constantly
updated with sustainability news
in which Pirelli is the protagonist.
We also envisage a disclosure programme
of the main subjects in the
balance sheet through all the channels
most suited to internal communication.
No. 58 — September 2010
Specific waste [kg/ton FP]
Group [%]
Production Sites
87%
Non-hazardous Waste
Wastes are classifi ed according to their hazardousness pursuant to specifi c European Union
regulations, specifi cally EC Decision no. 532 of May 3, 2000 (as amended) and EC Directive 98
of November 19, 2008.
27

Romania
Restructuring the paediatrics department of Slatina hospital
Steelcord Team
for happy kids
28 PIRELLI WORLD

The Pirelli Steelcord
managers involved in an
innovative three-day project
of CSR and team building
Fausta Ciccarella
Three days of intense work in the Hospital
of Slatina, the Romanian city in
which Pirelli has tyre manufacturing
and R&D facilities, to make the neuromotor
paediatrics department more efficient
and comfortable. That was the
objective of the ‘Team for Kids’ project
in which 21 managers of Pirelli’s
Steelcord BU – now renamed Pirelli
Wire Technologies – took part.
The project entailed restructuring the
whole department, which accommodates
children of between one and
10 years-old as residential or day patients.
From 7-9 July, the team went full
steam ahead and worked as labourers,
decorators and bricklayers, painting
the walls, fitting new wardrobes,
cleaning rooms and then distributed many new toys
to the young patients.
In short, they all worked to contribute to the rebirth
of the department, the conditions of which had seriously
deteriorated.
But that is not all, because every self-respecting hospital
also needs modern medical technology and that
is the reason why the Steelcord BU decided to donate
significant equipment to the department to make
Slatina paediatrics avant-garde.
The ‘Team for Kids’ project, part of a broad cooperation
programme begun in 2008 between the Pirelli
Group and the Slatina Hospital, is also a new means
of training adopted by Pirelli with the support of
Impact Italia, a company specialised in the development
of people. The Community Action Programme
(CAP) methodology is founded on the attribution of a
social usefulness of team building projects, with the
objective of growing leadership in a more conscious
and integrated manner with the values of the Pirelli
Group. The Steelcord team passed its exam due to
a substantial commitment by each of its members;
they concluded their work quickly, attaining optimum
results and demonstrated a great harmony and
coordination.
“Social responsibility is an integral part of the Pirelli
'Team for Kids'
project is part of a
cooperation programme
between Pirelli and the
Slatina Hospital
strategy throughout the world and Pirelli Wire Technologies
is motivated to give a small but concrete contribution
to Slatina”, said Carlo Costa, head of the business
unit. “We benefit from this because helping those
who are much worse off than us enables us to make
our point of view more relative and to break down barriers
that daily competition inevitably creates”.
Fabrizio Filippucci, director general of Cord Romania,
expressed great satisfaction with the undertaking,
saying, “The project is an innovative method of
team building for our managers, but above all for the
transformation of the image and atmosphere of the
department through a mix of activities”.
With this project that took just a few days, it was possible
to make a concrete and useful contribution to
Slatina Hospital and the city’s community, of which
the Pirelli Group feels it is now an integral part.
No. 58 — September 2010
29

Corporate culture
14 April, the inauguration of the Pirelli Foundation
When business
history becomes
contemporary values
Over 2,000 people visited
the Pirelli Foundation
and the Historic Archive
in Milan
Fausta Ciccarella
With an inauguration ceremony attended
by over 500 people the Pirelli Foundation,
which was constituted in 2009, officially
opened its doors to the public on 14 April. The evening
involved those attending in a symbolic journey
through the immense patrimony of the Pirelli Historic
Archive, which has now been made available to
the public due to the recovery, classification and digi-
30 PIRELLI WORLD
talisation work carried out in line with the wishes of
the Pirelli family.
The Foundation intends to promote and propagate
knowledge of the Group’s cultural, historic and documentary
patrimony, an integral story which is part of
the entrepreneurial, social and creative history of Italy,
with an international spread. Among the Foundation’s
objectives is the promotion and enhancement of cultural
initiatives, which have characteristics of similarity
and coherence with Pirelli’s cultural enterprise.
Attending the inauguration were Pirelli and Foundation
chairman Marco Tronchetti Provera, Cecilia and
Alberto Pirelli, respectively honorary president and
board member of the Foundation, its director Antonio
Calabrò and a number of prominent regional and
city authorities. They included Roberto Formigoni,
president of the Lombardy region, and Alberto Meo-

The showroom and event location on the first floor
martini, president of Assolombarda, both of whom
underlined the importance of the history and relevance
of cultural enterprise, of which Pirelli is such
a significant example.
The offices of the Foundation are in Fabbricato 134, a
1930s building that has been completely restructured
to a project by Studio Cerri & Associati. It is specifically
devoted to the Foundation and retains all of the
architectural fascination of the renowned Bicocca
factory, the industrial heart of Pirelli since 1908.
Visitors are greeted at the entrance of the building by
a simpatico black cat, a giant reproduction of Gatto
Meo – Meo Romeo is its full name – created in 1949
from the imagination of that ingenious designer
Bruno Munari. In the early ‘50s, Munari was artistic
director of the Pirelli rubber toy division, which produced
dolls, puppets and items for the seaside. The
The consulting room with the mosaic 'La Ricerca Scientifica'
(1961) made from the original design by Renato Guttuso
arrival of foam rubber in that period multiplied the
ideas in Munari’s mind with which to invent something
new. And that is how Meo was created – with
wire covered by the miraculously light and spongy
material – a delightful cat with whiskers of nylon and
fabric ears. Munari himself baptised his cat Meo Romeo,
which was recently shown at the Disegno and
Design exhibition at the Ara Pacis in Rome.
Climbing the Foundation’s stairs, there is the original
design along the wall of La Ricerca Scientifica (Scientific
Research) by Renato Guttuso, an imposing
work of about 5.60 x 3.20 metres commissioned
by Pirelli from the artist
for the 1961 International
Expo in Turin. The design,
which was recently restored,
was the basis of a similar mosaic
ordered by Pirelli from
the masters of mosaics at
Ravenna, which today occupies
an entire wall of the first
floor consulting room.
On display on the same floor
is the initial Pirelli calendar The giant reproduction
published in 1964, plus a series of Meo Romeo, the toy
of industrial design objects.
cat by Bruno Munari
No. 58 — September 2010
31

Corporate culture
''Adess ghe
capissaremm on
quaicoss: andemm a
guardagh denter"
"Now we will be able to
understand something:
let's look into the matter"
That was the expression used by
engineer Luigi Emanueli, vice-president
of Pirelli in 1954, when the technicians
with whom he worked appeared frightened
because the results of certain tests
were negative. His tenacity and passion
for research and analysis always led him
to seek out solutions to problems.
In 1971, a part of Bicocca’s Via Egeo
was named after him. The Via Emanueli
sign was unveiled in the presence of the
mayor Aldo Aniasi, Leopoldo Pirelli and
engineer Luigi Rossari, who was then
vice-president of Industrie Pirelli.
The archive for the conservation of historic material
is housed on the ground floor, where compatible filing
cabinets have been installed to hold 2,500 metres
of shelves. There is also a room for chests of drawers
and a laboratory in which to work on material.
In Fabbricato 134, visitors are able to see 138 years of
history covered by the more than 2.5 kilometres of
documents and objects. Among them are original
layouts by Bob Noorda, Manzi, Fletcher, the red shoes
32 PIRELLI WORLD
worn by Olympic phenomenon Carl Lewis for the famous
Pirelli tyre advertisements, historic films, television
advertising of yesterday and today and much
more. There is also an entire collection of Rivista
Pirelli, in which there are articles written by greats
such as Eugenio Montale, Alberto Moravia, Umberto
Saba, Carlo Emilio Gadda and Umberto Eco.
A little over three months after its inauguration, the
Pirelli Foundation had been visited by over 2,000 peo-

The immense patrimony of the Pirelli
Historic Archive is cotained in more
than 2,5 kilometres of documents
and is partially available through touch
screen technologies.
Left: a drawing for Stelvio tyre advertisement
by Armando Testa (1955)
ple: and they were not only researchers and scholars,
therefore those interested in specific content of the
Historic Archives, but also students, from those attending
lower secondary school to others at university.
Visitors also included some of the company’s
ex-employees, people from the worlds of design and
fashion and advertising history enthusiasts.
Among the events that take place at the Foundation
company functions play a principal role, because the
Pirelli Foundation:
the mission
The foundation was born in 2009 in line with the wishes of
the Pirelli family and the Group, which have attributed to it
two main objectives. One is to safeguard and enhance the
knowledge of the immense cultural, historic and contemporary
patrimony of Pirelli, and the other is to promote its cultural
enterprise as an important part of Italy’s patrimony. The Pirelli
Historic Archive has been transferred to the new Foundation
building, where a vast programme of work has begun on
material that has been conserved with a view to ensuring its
best protection and use. At the same time, the Foundation
has begun to operate on the documentation of the Group’s
contemporary activities and the promotion of initiatives that
represent the cultural enterprise of present day Pirelli.
The Pirelli Foundation is at
Viale Sarca, 222 - 20126 Milan (MI)
It is open to the public by appointment
from Tuesday until Thursday
from 9 am until 5 pm
For appointments and information:
Tel: 02 64423971
e-mail: info@fondazionepirelli.org
web site: www.fondazionepirelli.org
structure is able to offer areas that can be personalised
for meetings, exhibitions, press conferences
and institutional events.
In brief, through the Historic Archives the Foundation
has collected together all of Pirelli’s past and has started
to operate with an eye to the future, both on the documentation
front of the contemporary activities of the
Group and the promotion of initiatives aimed at representing
the cultural enterprise of present day Pirelli.
No. 58 — September 2010
33

2010 Superbike
Highlights from the circuits
World Superbike
Championship
34 PIRELLI WORLD
1

3
4
5
1 Misano - Max Biaggi wins the race
2 Brno - Preparing SBK motorcycle tyres
3 Brno - Haslam in action
4 Assen - spectators
5 Brno - Toseland in action
No. 58 — September 2010
2
35

2010 awards
From Public Institutions, private companies and consumers
Leaders worldwide
China | Pirelli is the
‘recommended brand’
Chinese Automobile
Aftermarket
experts and brand
representatives
invited to the
China Automobile
Aftermarket
Summit named
Pirelli as the
‘recommended
brand’
Venezuela | ‘Top Ford
supplier’
During the Ford World Excellence
Awards presentation, Pirelli received the
World Excellence Award of the Ford Motor
Company for the excellence of its quality,
cost and delivery
36 PIRELLI WORLD
MaY
MaY
U.S.A | The best tyres
for sports vehicles
The high performance tyres for sports
vehicles preferred by American motorists
are Pirelli, says the Original Equipment Tyre
Satisfaction Index Study carried out by the
prestigious research institute JD Power &
Associates
Nigeria | ‘Tyre Brand
of the Year’
Pirelli is the ‘2009 Tyre Brand
of the Year’ in Nigeria. This
is the result of the Original
Equipment Tyre Satisfaction
Index Study carried out by
JD Power & Associates.
Pirelli is active in Nigeria
through its distributor
The Infinity Group
which, with its sales organisation,
contributed
to the achievement of
the award.
Spain | Cinturato P7,
‘Tyre of the year’
The Cinturato P7 has won the title 2010 Tyre
of the Year in Spain. The decision was made
by an award jury organised by the magazine
Neumáticos y Mecánica Rápida composed
of specialists, distributors and specialised
journalists
aPR.
FEB. MaR.
Italy
‘Premio Guido
Carli’
Italy | The best in Investor
Relations
Over 700 national and foreign analysts and investors
have rewarded Pirelli with the ‘2010 Country
Award’ for Italy assigned in London by the
authoritative IR Magazine Europe to the best and
most professional companies in their relations
with investors
Sustainability,
leadership grows
The '2010 Sustainability Yearbook' places Pirelli
as 'Sector Leader', 'Sector Mover' and 'Gold Class
Company' in the 'Autoparts and Tyres' area. Pirelli
has thus confirmed its leadership in sustainability
in its industry both at worldwide level and in Italy
Pirelli again
in the FSTE4Good
Pirelli has been reconfirmed
as part of the
Financial Times Index
of Sustainability or the
FTSE4Good (FTSE Global
and FTSE4Good Europe)
MaY
Marco Tronchetti Provera, chairman
of Pirelli Group, received the
‘Premio Guido Carli’ at Montecitorio,
Rome, for having distinguished
himself during the year in the field
of economics
Jul.
Jan. MaY