PIRELLI IN BRIEF

Pirelli was founded in Milan in 1872 and today stands as a global brand known for its cutting-edge technology, high-end production excellence and passion for innovation that draws heavily on its Italian roots.

1
%
Consumer Company

With 18 production plants in 12 countries and a commercial presence in over 160, Pirelli has around 31,300 employees and had a turnover of about 6.6 billion euro in 2022. It is among the world’s major producers of tyres and associated services and the only one focused solely on the Consumer tyre market, which includes tyres for cars, motorcycles and bicycles.

71
OF REVENUES
CAME FROM
HIGH-VALUE TYRES
29
OF REVENUES
CAME FROM
STANDARD TYRES

6.6 Billion

revenues

~92%

of revenues

~8%

of revenues

Pirelli, a Pure Consumer Tyre Company, has a particular focus on the High Value1 tyre market and is constantly engaged in the development of innovative products created to reach the highest levels of performance, safety, noise reduction and adherence to the road surface. Tyres to address the most specific mobility needs of the final Consumer.

Within the tyre industry, Pirelli competes with “Tier 1” manufacturers that have higher than average price positioning, a wide range of products and dedicated regional lines. Among these players, Pirelli stands out because of its exclusive positioning in the Pure Consumer Tyre segment, focused on High Value that at the end of 2022 accounted for around 71% of group revenues. In the context of High Value tyres, Pirelli is the leader in Prestige tyres, with a market share of over 50% in the Original Equipment channel.

1More specifically, the High Value segment includes:
(I) car tyres which have a rim size of 18 inches or more;
(II) car tyres, so-called Specialties and Super Specialties, which respond to specific client needs: Run FlatTM, Seal InsideTM, PNCSTM, Elect™, Pirelli Cyber™, Racing, Collezione, regardless of rim size;
(III) radial motorcycle tyres, so called Premium; racing motorcycle tyres, custom touring and with speed index ≥H tyres (off road and sport touring segments).

Products Portfolio

A HIGH VALUE RANGE
OF CONSUMER TYRES
74
Car tyre capacity per year
73
of total capacity from high-value tyres

Over the years, Pirelli has concentrated, above all, on the development, production and marketing of tyres with large rim sizes, special technical and aesthetic characteristics and associated with high performance, advanced technology and safety. Recognized by consumers as high value products, the company’s product range consists of innovative tyres for cars, motorcycles, and bicycles, as well as a growing portfolio of tyres for specific applications and customized ones. Among them Pirelli Cyber™ Tyre, the result of the most recent Research & Development activities and technological innovation, which thanks to sensors inside the tyre (the only element of the car capable of ‘sensing’ the conditions of the surface on which it is being driven) will contribute to the delivery of essential information to improve vehicle performance and driving safety.

March 2022 saw the start of cycling tyre production at the Pirelli plant in Bollate, which is now the only factory to produce “Made in Italy” bicycle tyres on an industrial scale. This factory is in fact dedicated to the production of high-tech tyres, designed both for amateurs and athletes.

The company’s consumer focus starts at the tyre development stage. For High Value products, this is the result of solid partnerships with the most prestigious car and motorcycle manufacturers, as well as in the Cycling world with the top UCI cycling teams. These collaborations allow Pirelli to develop tyres, model by model , which are tailor made to satisfy the specific needs of the most sophisticated consumers.

Racing

ALL THE MOTORSPORT TECHNOLOGY
IN CONSUMER PRODUCTS

Pirelli’s technological excellence is also nourished by the innovation and competencies derived from sporting competitions, in which it has been active for over 115 years. Currently, the Company participates in over 350 car and motorcycle sporting championships and since 2011 it has been the exclusive tyre supplier to the Formula 1© World Championship and will remain as sole Global Tyre Partner until 2027. The year 2022 was particularly significant in terms of technical innovations: after more than half a century, tyres went from 13 to 18 inches; the change in size involved all elements of the tyre, from profiles to structure to compounds, with a wider window of use. The design required more than 10,000 hours of indoor testing, more than 5,000 hours of simulation and more than 70 solutions which were developed virtually, and which lead to the 30 specifications being tested by almost all the teams. 18 inch tyres are closer to the those used daily by regular drivers around the world. This will enable better transfer of all the technologies developed for Formula 1 to Pirelli road products.

In 2021, Pirelli was chosen by the FIA - International Automobile Federation - as the sole supplier of tyres for the World Rally Championship, which facilitated the technical development of many specialties and features, later also applied to road tyres. Technological evolution during the 2022 season was marked by the introduction of the new hybrid engines for the WRC cars, which lead to the development of a full range of tyres to handle the extra weight and increased power of the new WRC1 cars. Pirelli is also involved in the main GT competitions, where some of the most prestigious car brands compete.

In 2022, Pirelli continued its commitment in the role of Official Tyre Supplier for all classes of the MOTUL FIM Superbike World Championship. This technical partnership, which began in 2004, can claim the record for the longest running single tyre brand ever in the history of international motor sport, and which has been continually sustained by intense research and development work. The most important new event for 2022 was the debut of the new extra-soft SCQ compound. Thanks to its historical experience with racing motorcycles, Pirelli develops its road tyre range, with this philosophy: “We sell what we race, we race what we sell”. Such a strong presence in motorsport enables Pirelli to generate avant-garde solutions that are then transferred to tyre ranges for the Consumer market, ensuring the maximum levels of performance and safety.

In Motocross, Pirelli has won 79 world titles, including world titles in the three maximum classes: MXGP, MX2 and WMX (the FIM Women’s Motocross World Championship).

In cycling, in 2022, the Company signed a partnership with the top teams from the UCI World Tour andadded a new partnership with the Q36.5 Pro Cycling Team. The MTB world sees Pirelli as co-title sponsorship of the Wilier PIRELLI Factory Team, and also the new ones with Trek-Factory Racing and Team BMC, among the most important and renowned teams of the international MTB Cross Country marathon scene. Pirelli’s commitment to the world of cycling continues to grow: in gravity racing and with CANYON CLLCTV PIRELLI, an international Downhill team, as well as being the tyre supplier for the enduro team CANYON CLLCTV Dainese.

Research & development

CAPACITY FOR CONTINUAL
TECHNOLOGICAL INNOVATION

All of this has grown from a strong commitment to Research and Development based on an “Open Innovation” model. In 2022, Pirelli’s investment in R&D stood at more than 5% of its revenues from High Value products, one of the highest levels among the world’s major tyre producers. Pirelli boasts around 2,000 people engaged in R&D, located at its Milan headquarters and 12 local technology centres abroad, and a portfolio of more than 5,900 patents from 690 active patent families. In 2022, Pirelli inaugurated the new “Digital Solutions Centre” in Bari, for the development of Machine Learning and Artificial Intelligence software and algorithms to support business functions, the realisation of new digital products and services for the tyre world. Pirelli also has in place a series of R&D collaborations and Joint Development Agreements with external players such as suppliers, universities and car manufacturers. It has 65 collaboration projects with Universities, more than 20 Joint Development Agreements and collaborations with suppliers and a huge number of R&D collaborations with Premium car manufacturers in innovative technologies. The year 2023 marked the end of the first cycle of the second level university masters program “R&D Excellence Next”, devised in collaboration with the Politecnico di Milano, which involved 34 recently hired young engineers with the goal of training specialized engineers.

Operations

GLOBAL PRODUCTION
AND SALES STRUCTURE

FOCUSED ON HIGH VALUE

To produce the highest-quality products, Pirelli insists on operational excellence along its whole value chain. The Company counts:

  • 18 factories located in 12 countries
  • Production capacity in 2022 of 74 million car tyres
  • Points of sale in over 160 countries (around 20,000 in 2022), an extensive and growing sales network that brings Pirelli ever closer to its customers.

People

OUR PEOPLE,
A DIVERSE SET OF TALENTS

The strength of Pirelli lies in its people, who come from a diversity of countries and have a wide variety of skill sets. Pirelli encourages diversity, recognizing the professional excellence of its many specialized individual functions and investing in the development of young talent. In order to enable all of its 31,300 employees to reach their full potential, Pirelli is also committed to providing continuous training (7.6 average training days per capita in 2022), promoting cross-functional cooperation, ensuring the exchange of practical and theoretical know-how between countries, and supporting the implementation of the most highly evolved company procedures.

Brand

A powerful BRAND,
Beyond tyres

The Pirelli brand is an international icon standing for technology, tastefulness and Italian excellence, synonymous with safety and reliability. Represented by the unmistakable “long P” logo for more than a century, the Pirelli name is associated with exclusivity, luxury and innovation, strengthening its distinctive position as a supplier to luxury car manufacturers. Pirelli continually enhances the reputation and strength of the brand through its involvement in motorsport events and competitions, cultural and artistic projects and initiatives benefitting local communities.

In the world of sports, Pirelli is the Global Tyre Partner of FC Internazionale Milano, and has since 2018 also been the “co-title sponsor” of Luna Rossa which in 2024 will take part in the 37th America’s Cup in Barcelona. Since 2002, Pirelli has also been the main and lead sponsor of “Alla Grande Pirelli”, the 100% made-in-italy Class 40 with which the Milanese yachtsman Ambrogio Beccaria took second place in the solo ocean race Route du Rhum.

sustainability

PIRELLI’S SUSTAINABILITY MODEL IS INSPIRED BY THE 10 PRINCIPLES OF THE UNITED NATIONS GLOBAL COMPACT, THE AA1000 STANDARD FOR STAKEHOLDER ENGAGEMENT AND THE GUIDELINES OF THE ISO 26000.

*Eco&Safety - Figure obtained by weighing the value of sales of Eco & Safety Performance tyres on the total value of sales of Group car tyres. Eco & Safety Performance products identify the car tyres that Pirelli produces throughout the world and that fall under rolling resistance and wet grip classes A, B, C according to the labelling parameters set by European legislation.

Pirelli’s commitment to the creation of sustainable value inspires its responsible management and economic, social and environmental performance and, as a result, it has been included in some of the world’s most prestigious sustainability market indices.

In 2022, Pirelli continued to record improvements in its environmental, social and economic performances, achieving significant milestones.

  • On May 2022 Pirelli announced that the Science Based Targets initiative (SBTi) had validated the upgrade of Pirelli’s greenhouse gas emission reduction targets, which by the end of 2021 had reached the previous targets validated by SBTi for Scope 1 and 2, four years ahead of schedule. The new targets include measures consistent with keeping global warming “to within 1.5°C”, compared to the previous scenario that envisaged staying “well below 2°C”. In particular, the SBTi - which defines and promotes science-based best practices for reducing emissions - has validated Pirelli’s targetted -42% reduction in absolute greenhouse gas emissions (Scope 1 and 2) by the end of 2025, compared to 2015, and a -9% reduction in absolute greenhouse gas emissions from purchased raw materials by the end of 2025, compared to 2018 (Scope 3).
  • On December, 2022 Pirelli was confirmed for inclusion in the Dow Jones Sustainability World and European Index, following the annual index review conducted by S&P Global. This confirmation follows the announcement of the global Top Score achieved by Pirelli on 21 October 2022 in the ATX Auto Components sector in S&P Global’s Corporate Sustainability Assessment for 2022, with a score of 86 points (reviewed after the initial score of 85). Pirelli achieved the highest score in several management areas, including Corporate Governance and Due Diligence in the areas of human rights, natural resource management and CO2 emissions reduction, innovation and cyber security, and thoroughness and transparency in social and environmental reporting.
  • In the same month Pirelli was confirmed, for the fifth consecutive year, as a global leader in the fight against climate change, earning a place on the Climate A List for 2022 drawn up by the CDP, the international non-profit organisation that collects, distributes and promotes information on environmental issues. The “A” rating assigned to Pirelli at the conclusion of the analysis process, the highest possible score was awarded to only 294 companies out of more than 18,700 participants, assessed on the basis of the effectiveness of their efforts to reduce emissions and climate risks and to develop a low-carbon economy, as well as on the basis of the completeness and transparency of the information provided and the adoption of best practices associated with environmental impact.

Last Revised: 14 Sep 2017