21. EQUITY

21.1 Equity attributable to owners of the Parent

The equity attributable to owners of the Parent rose from euro 1,990,831 thousand at December 31, 2010 to euro 2,146,099 thousand at December 31, 2011.

The net increase was mainly accounted for by the net income for the period (positive euro 451,608 thousand) and the effect resulting from application of inflation accounting in Venezuela, for a positive euro 21,711 thousand, offset by the decrease tied to dividends paid (euro 81,151 thousand), the balance of exchange differences tied to conversion into euro of the financial statements of subsidiaries whose functional currency is not the euro (negative euro 62,981 thousand), the effects of transfer of non-controlling interests (49%) of the Environmental Products and Services BU (reduction of euro 32,749 thousand; in this regard, please see the note “Acquisition of non-controlling interests in subsidiaries”), the fair value adjustment of derivative financial instruments in cash flow hedge (reduction of euro 31,465 thousand) and available-for-sale investments (reduction of euro 45,085 thousand) and actuarial losses on pension funds (euro 80,640 thousand).

The subscribed and paid-up share capital at December 31, 2011 (including treasury shares) is represented by 475,740,182 ordinary shares and 12,251,311 savings shares, without par value and having normal entitlements, for a total of euro 1,345,381 thousand.

The share capital is presented net of the value of treasury shares (351,590 ordinary shares, representing 0.07% of ordinary shares, and 408,342 savings shares, representing 3.33% of savings shares), for a net total of euro 1,343,285 thousand.

The total of treasury shares represents 0.16% of share capital.

The share capital decreased from December 31, 2010 after the Shareholders’ Meeting on April 21, 2011 resolved on the voluntary reduction for euro 32,498 thousand pursuant to Article 2445 Italian Civil Code, to be charged to equity. This reduction was executed to complete the assignment of Prelios S.p.A. shares carried out in 2010. It does not reduce the equity attributable to owners of the Parent since the amount of the reduction was allocated to eliminate the negative equity reserve created upon conclusion of the share assignment.

The equity per share was euro 4.398, compared with euro 4.080 at December 31, 2010.

 

21.2 Equity attributable to non-controlling interests

The equity attributable to non-controlling interests rose from euro 37,152 thousand at December 31, 2010 to euro 45,479 thousand at December 31, 2011. The change is mainly due to the result for the period (negative euro 10,957 thousand), the transfer by the Camfin Group of the remaining 49% of the Environmental Products and Services BU (positive impact of euro 25,766 thousand), and the acquisition of an additional 15% of Pirelli Tyre Co Ltd. (China) from the minority shareholder (reduction of euro 17,796 thousand).

The principal non-controlling interests in equity are illustrated as follows:

  12/31/2011 12/31/2010
Drahtcord Saar Gmbh & Co. K.G. (Germany) 50.00% 50.00%
Euro Driver Car S.L. (Spain) 46.58% 47.18%
Yanzhou Hixih Ecotech Environment CO. Ltd (China) 40.00% 40.00%
Driver Italia S.p.A. (Italy) 27.55% 27.46%
E-VOLUTION Tyre B.V. (Netherlands) 25.00% -
S.C. Cord Romania S.R.L (Romania) 20.00% 20.00%
Alexandria Tire Co. S.A.E. (Egypt) 10.90% 10.90%
Pirelli Tyre Co. Ltd (China) 10.00% 25.00%
Pirelli de Venezuela C.A. (Venezuela) 3.78% 3.78%
Pirelli & C. Eco Technology S.p.A. (Italy) - 49.00%
Pirelli & C. Ambiente S.p.A. (Italy) - 49.00%