45. OTHER INFORMATION

Research and development expenses

Research expenses rose from euro 150 million in 2010 (3.1% of sales) to euro 170 million in 2011 (3.0% of sales). They were expensed on the income statement insofar as they did not satisfy IFRS requirements for capitalisation.

 

Compensation of directors and statutory auditors

Fees paid to directors and statutory auditors of Pirelli & C. S.p.A. for performance of their duties at the parent and also at other consolidated companies were as follows:

(in thousands of euro)
  2011 2010
Directors 14,274 8,377
Statutory Auditors 167 161
  14,441 8,538

 

Employees

The average headcount of employees of consolidated companies is as follows, broken down by category:

  2011 2010
Executives and white collar staff 5,838 6,543
Blue collar staff 22,310 20,926
Temporary workers 3,104 2,860

31,252 30,329

 

Compensation of independent auditors

IThe following statement, prepared pursuant to Art. 149–duodecies of the Consob Issuers Regulation, shows the fees accruing to financial year 2011 for auditing services and for services other than auditing, rendered by the accounting firm Reconta Ernst & Young S.p.A. and by entities belonging to its network:

(in thousands of euro)
 
Company that provided
the service
Company that
received the
service
Partial fees Total fees  
Independent
auditing services
and certification
services 1  
Reconta Ernst & Young S.p.A. Pirelli & C. S.p.A. 508    
Reconta Ernst & Young S.p.A. Subsidiaries 738    
Network Ernst & Young Subsidiaries 1,441 (2) 2,687 94.30%
Servizi diversi
dalla revisione  
Reconta Ernst & Young S.p.A. Pirelli & C. S.p.A. 113 (3)    
Reconta Ernst & Young S.p.A. Subsidiaries -    
Network Ernst & Young Subsidiaries 48 (4) 161 5.70%
   
    2,848 100.00%
1 the item “independent auditing services and certification services” includes amounts paid for legal accounting auditing services and other services that envisage the issuance of an auditor’s report as well as amounts paid for certification services linked with legal auditing activities 2 of which euro 104 thousand for certification services 3 assistance services for risks and suppliers assessment activities 4 tax assistance services

 

Transactions resulting from unusual and/or exceptional operations

Pursuant to Consob Notice of July 28, 2006, the Group certifies that it did not carry out any unusual and/or exceptional transactions in 2011, as defined in the Notice itself.

 

Exchange rates

The main exchange rates used for consolidated purposes are as follows:

(local currency against euro)

END OF THE PERIOD CHANGE IN % AVERAGE CHANGE IN %
31/12/2011 31/12/2010 2011 2010
Bolivar Venezuela Fuerte 5.5638 5.7457 (3.17%) 5.5638 5.7457 (3.17%)
Australian dollar 1.2723 1.3136 (3.14%) 1.3482 1.4431 (6.58%)
Canadian dollar 1.3215 1.3322 (0.80%) 1.3760 1.3657 0.75%
Singapore dollar 1.6819 1.7136 (1.85%) 1.7491 1.8069 (3.20%)
U.S. dollar 1.2939 1.3362 (3.17%) 1.3921 1.3263 4.96%
Swiss franc 1.2156 1.2504 (2.78%) 1.2330 1.3810 (10.72%)
Egyptian pound 7.8187 7.7553 0.82% 8.2780 7.4807 10.66%
New Turkish lira 2.4556 2.0590 19.26% 2.3356 1.9982 16.89%
New Romanian leu 4.3233 4.2620 1.44% 4.2381 4.2115 0.63%
Argentine peso 5.5690 5.3127 4.82% 5.7530 5.1893 10.86%
Mexican peso 18.0463 16.5343 9.14% 17.3090 16.7490 3.34%
South African rand 10.4830 8.8625 18.28% 10.0972 9.7029 4.06%
Brazilian real 2.4271 2.2264 9.01% 2.3313 2.3334 (0.09%)
Chinese renminbi 8.1527 8.8493 (7.87%) 8.9907 8.9785 0.14%
Russian rouble 41.6714 40.3331 3.32% 40.9038 40.2157 1.71%
British pound 0.8353 0.8608 (2.96%) 0.8679 0.8582 1.13%
Japanese yen 100.2000 108.6500 (7.78%) 110.9897 116.3803 (4.63%)

 

Net financial (liquidity) debt position

(alternative performance measure not envisaged by the acounting standards )

Net financial (liquidity) debt position is broken down as follows:

(in thousands of euro)
  NOTE 12/31/2011 12/31/2010
    of which non-
controlling
interests
  of which non-
controlling
interests
Current borrowings from banks and other financial institutions 25 369,451 286 247,515 77
Current derivative financial instruments (liabilities) 28 6,138   4,810  
Non-current borrowings from banks and other financial institutions 25 1,402,497   894,711  
Total gross debt   1,778,086   1,147,036  
Cash and cash equivalents 20 (556,983)   (244,725)  
Securities held for trading 19 (160,503)   (209,770)  
Current financial receivables 16 (52,536) (24,763) (13,266) (5,926)
Current derivative financial instruments (assets) 28 (20,262)   (915)  
Net financial debt *   987,802   678,360  
Non-current fiancial receivables 16 (250,733) (161,013) (222,757) (140,419)
Total net financial (liquidity) debt position *   737,069   455,603  
* Pursuant to Consob Notice of July 28, 2006 and in compliance with CESR recommendation of February 10, 2005 “Recommendation for the consistent implementation of the European Commission Regulation on Prospectuses”

 

Companies consolidated line-by-line
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOlDING HELD BY
EUROPE        
Austria    
Pirelli GmbH Tyre Vienna Euro 726,728 100.00% Pirelli Tyre (Suisse) S.A.
Belgium            
Pirelli Tyres Belux S.A. Tyre Bruxelles Euro 700,000 100.00% Pirelli Tyre (Suisse) S.A.
France
Gecam France S.a.S. Sustainable mobility Villepinte Euro 130,205 70.00% Pirelli & C. Eco Technology S.p.A.
Pneus Pirelli S.a.S Tyre Villepinte Euro 1,515,858 100.00% Pirelli Tyre (Suisse) S.A.
Germany
Deutsche Pirelli Reifen Holding GmbH Tyre Breuberg / Odenwald Euro 7,694,943 100.00% Pirelli Tyre S.p.A.
Drahtcord Saar Geschaeftsfuehrungs GmbH Tyre Merzig Deut. Mark 60,000 50.00% Pirelli Deutschland GmbH
Drahtcord Saar GmbH & Co. KG Tyre Merzig Deut. Mark 30,000,000 50.00% Pirelli Deutschland GmbH
Driver Handelssysteme GmbH Tyre Breuberg / Odenwald Euro 26,000 100.00% Deutsche Pirelli Reifen Holding GmbH
Pirelli Deutschland GmbH Tyre Breuberg / Odenwald Euro 26,334,100 100.00% Deutsche Pirelli Reifen Holding GmbH
Pirelli Personal Service GmbH Tyre Breuberg / Odenwald Euro 25,000 100.00% Deutsche Pirelli Reifen Holding GmbH
PK Grundstuecksverwaltungs GmbH Tyre Hoechst / Odenwald Euro 26,000 100.00% Deutsche Pirelli Reifen Holding GmbH
Pneumobil GmbH Tyre Breuberg / Odenwald Euro 259,225 100.00% Deutsche Pirelli Reifen Holding GmbH
Greece 
Elastika Pirelli S.A. Tyre Kallithea (Athens) Euro 11,192,000 99.90% Pirelli Tyre (Suisse) S.A.
          0.10% Pirelli Tyre S.p.A.
Pirelli Hellas S.A. (in liquidation) Tyre Athens US $ 22,050,000 79.86% Pirelli Tyre S.p.A.
The Experts in Wheels – Driver Hellas S.A. Tyre Kallithea (Athens) Euro 100,000 72.00% Elastika Pirelli S.A.
Hungary
Pirelli Hungary Tyre Trading and Services Ltd Tyre Budapest Hun. Forint 3,000,000 100.00% Pirelli Tyre (Suisse) S.A.
Ireland      
Pirelli reinsurance Company Ltd Services Dublin US $ 7,150,000 100.00% Pirelli Finance (Luxembourg) S.A.
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOLDING HELD BY
ITALY      
Driver Italia S.p.A. Tyre Milan Euro 350,000 72.45% Pirelli Tyre S.p.A.
EPRE S.r.l. Environment Milan Euro 10,000 100.00% Solar Utility S.p.A.
IESS Pachino S.r.l. Environment Milan Euro 10,000 100.00% Solar Utility S.p.A.
IN & OUT S.r.l. Fashion Milan Euro 20,000 100.00% PZero S.r.l.
Maristel S.p.A. Services Milan Euro 1,020,000 100.00% Pirelli & C. S.p.A.
P.A. Società di Gestione del Risparmio S.p.A.. Environment Milan Euro 2,000,000 100.00% Pirelli & C. Ambiente S.p.A.
Pirelli & C. Ambiente S.p.A. Environment Milan Euro 1,000,000 100.00% Pirelli & C. S.p.A.
Pirelli & C. Ambiente Site Remediation S.p.A. Environment Milan Euro 155,700 100.00% Pirelli & C. Ambiente S.p.A.
Pirelli & C. Eco Technology S.p.A. Sustainable mobility Milan Euro 17,810,000 100.00% Pirelli & C. S.p.A.
Pirelli Industrie Pneumatici S.r.l. Tyre Settimo Torinese (To) Euro 31.000.000 100,00% Pirelli Tyre S.p.A.
Pirelli Labs S.p.A. Services Milan Euro 5,000,000 100.00% Pirelli & C. S.p.A.
Pirelli Nastri Tecnici S.p.A. (in liquidation) Services Milan Euro 384,642 100.00% Pirelli & C. S.p.A.
Pirelli Servizi Amministrazione e Tesoreria S.p.A. (ex-Centro Servizi Amministrativi PIRELLI S.r.l.) Services Milan Euro 2,047,000 100.00% Pirelli & C. S.p.A.
Pirelli Sistemi Informativi S.r.l. Services Milan Euro 1,010,000 100.00% Pirelli & C. S.p.A.
Pirelli Tyre S.p.A. Tyre Milan Euro 756,820,000 100.00% Pirelli & C. S.p.A.
Poliambulatorio Bicocca S.r.l. Tyre Milan Euro 10,000 100.00% Pirelli Tyre S.p.A.
PZero S.r.l. Fashion Milan Euro 4,000,000 100.00% Pirelli & C. S.p.A.
Servizi Aziendali Pirelli S.C.p.A. Services Milan Euro 104,000 92.25% Pirelli & C. S.p.A.
          2.00% Pirelli Tyre S.p.A.
          1.00% Pirelli & C. Ambiente S.p.A.
          0.95% Pirelli Servizi Amministrazione e Tesoreria S.p.A. (ex-Centro Servizi Amministrativi Pirelli S.r.l.)
          0.95% Pirelli Labs S.p.A.
          0.95% Pirelli Sistemi Informativi S.r.l.
          0.95% PZero S.r.l.
          0.95% Pirelli & C. Eco Technology S.p.A.
Solar Utility S.p.A. Environment Milano Euro 14,000,000 100.00% Pirelli & C. Ambiente S.p.A.
Solar Utility Sicilia S.r.l. Environment Milano Euro 10,000 100.00% Solar Utility S.p.A.
Luxembourg
Pirelli Finance (Luxembourg) S.A. Financial Luxembourg Euro 13,594,910 100.00% Pirelli & C. S.p.A.
Poland
Driver Polska Sp.ZO.O. Tyre Warsaw Pol. Zloty 100,000 62.50% Pirelli Polska Sp.ZO.O.
Pirelli Polska Sp.ZO.O. Tyre Warsaw Pol. Zloty 625,771 100.00% Pirelli Tyre (Suisse) S.A.
Romania
S.C. Cord Romania S.r.l. Tyre Slatina Rom. Leu 36,492,150 80.00% Pirelli Tyre S.p.A.
S.C. Pirelli & C. Eco Technology RO S.r.l. Sunstainable mobility Oras Bumbesti-Jiu Rom. Leu 55,000,000 100.00% Pirelli & C. Eco Technology S.p.A.
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOlDING HELD BY
Slovakia
Pirelli Slovakia S.R.O. Tyre Bratislava Euro 6,639 100.00% Pirelli Tyre (Suisse) S.A.
Spain
Euro Driver Car S.L. Tyre Barcelona Euro 876,000 25.34% Pirelli Neumaticos S.A. - Sociedad Unipersonal
          28.08% Proneus S.L. - Sociedad Unipersonal
Omnia Motor S.A. - Sociedad Unipersonal Tyre Barcelona Euro 1,502,530 100.00% Pirelli Neumaticos S.A. - Sociedad Unipersonal
Pirelli Iniciativas Tecnologicas S.L. - Sociedad Unipersonal Tyre Barcelona Euro 10,000 100.00% Pirelli Neumaticos S.A. - Sociedad Unipersonal
Pirelli Neumaticos S.A. -Sociedad Unipersonal Tyre Barcelona Euro 25,075,907 100.00% PIRELLI Tyre S.p.A.
Proneus S.L. - Sociedad Unipersonal Tyre Barcelona Euro 3,005 100.00% Pirelli Neumaticos S.A. - Sociedad Unipersonal
Tyre & Fleet S.L. - Sociedad Unipersonal Tyre Barcelona Euro 20,000 100.00% Pirelli Neumaticos S.A. - Sociedad Unipersonal
Sweden
Pirelli Tyre Nordic A.B. Tyre Bromma Swed. Krona 950,000 100.00% Pirelli Tyre (Suisse) S.A.
Switzerland
Pirelli Group Reinsurance Company S.A. Service Lugano Swiss Franc 8,000,000 100.00% Pirelli & C. S.p.A.
Pirelli Tyre (Suisse) S.A. Tyre Basel Swiss Franc 1,000,000 100.00% Pirelli Tyre S.p.A.
The Netherlands
E-VOLUTION Tyre B.V. Tyre Heinenoord Euro 100,000 50.00% Pirelli Tyre S.p.A.
Pirelli China Tyre N.V. Tyre Heinenoord Euro 38,045,000 100.00% Pirelli Tyre S.p.A.
Pirelli Tyres Nederland B.V. Tyre Heinenoord Euro 18,152 100.00% Pirelli Tyre (Suisse) SA
Turkey
Celikord A.S. Tyre Istanbul Turkey Lira 29,000,000 98.73% Pirelli Tyre S.p.A.
          0.63% Pirelli International Ltd
          0.37% Pirelli UK Tyres Ltd
          0.27% Pirelli Industrie Pneumatici S.r.l.
Turk-Pirelli Lastikleri A.S. Tyre Istanbul Turkey Lira 140,000,000 99.839% Pirelli Tyre S.p.A.
          0.152% Pirelli Industrie Pneumatici S.r.l.
          0.009% Pirelli Tyre (Suisse) S.A.
United Kingdom
CPC 2010 Ltd Tyre Burton on Trent British Pound 10,000 100.00% Pirelli UK Tyres Ltd
CTC 1994 Ltd Tyre Burton on Trent British Pound 984 100.00% CTC 2008 Ltd
CTC 2008 Ltd Tyre Burton on Trent British Pound 100,000 100.00% Pirelli UK Tyres Ltd
Pirelli International Ltd Tyre Burton on Trent Euro 250,000,000 100.00% Pirelli Tyre S.p.A.
Pirelli Motorsport Services Ltd Tyre Burton on Trent British Pound 1 100.00% Pirelli Tyre S.p.A.
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOlDING HELD BY
NORTH AMERICA
Canada
Pirelli Tyre Inc. Tyre Fredericton (New Brunswich) Can. $ 6,000,000 100.00% Pirelli Tyre (Suisse) S.A.
U.S.A.
Pirelli North America Inc. Tyre Atlanta US $ 10 100.00% Pirelli Tyre S.p.A.
Pirelli Tire LLC Tyre Wilmington (Delaware) US $ 1 100.00% Pirelli North America Inc.
CENTRAL/SOUTH AMERICA
Argentina
Pirelli Neumaticos S.A.I.C. Tyre Buenos Aires Arg. Peso 101,325,176 95.00% Pirelli Tyre S.p.A.
          5.00% Pirelli Pneus Ltda
Brazil
Comercial e Importadora de Pneus Ltda Tyre Sao Paulo Bra. Real 12,913,526 100.00% Pirelli Pneus Ltda
Cord Brasil - Industria e Comercio de Cordas para Pneumaticos Ltda Tyre Santo Andrè Bra. Real 84,784,342 100.00% Pirelli Pneus Ltda
Ecosil - Industria Quimica do Brasil Ltda Tyre Meleiro Bra. Real 1,370,000 85.00% Pirelli Pneus Ltda
Pirelli Ltda Financial Sao Paulo Bra. Real 14,000,000 100.00% Pirelli & C. S.p.A.
Pirelli Pneus Ltda Tyre Santo Andrè Bra. Real 341,145,811 100.00% Pirelli Tyre S.p.A.
RF Centro de Testes de Produtos Automotivos Ltda Tyre Elias Fausto (Sao Paulo) Bra. Real 10,000 49.00% Pirelli Pneus Ltda
TLM - Total Logistic Management Serviços de Logistica Ltda Tyre Santo Andrè Bra. Real 1,006,000 99.98% Pirelli Pneus Ltda
          0.02% Cord Brasil - Industria e Comercio de Cordas para Pneumaticos Ltda
Chile
Pirelli Neumaticos Chile Limitada Tyre Santiago Chile Peso /000 1,918,451 99.98% Pirelli Pneus Ltda
          0.02% Comercial e Importadora de Pneus Ltda
Colombia
Pirelli de Colombia S.A. Tyre Santa Fe De Bogota Col. Peso/000 3,315,069 92.91% Pirelli Pneus Ltda
          2.28% Pirelli de Venezuela C.A.
          1.60% Cord Brasil - Industria e Comercio de Cordas para Pneumaticos Ltda
          1.60% TLM - Total Logistic Management Serviços de Logistica Ltda
          1.60% Comercial e Importadora de Pneus Ltda
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOlDING HELD BY
Mexico
PIRELLI Neumaticos de Mexico S.A. de C.V. Tyre Mexico City Mex. Peso 35,098,400 99.98% PIRELLI Pneus Ltda
          0.02% Comercial e Importadora de Pneus Ltda
PIRELLI Neumaticos S.A. de C.V. Tyre Silao Mex. Peso 500,050,000 99.00% PIRELLI Tyre S.p.A.
          1.00% PIRELLI Pneus Ltda
PIRELLI Servicios S.A. de C.V. Tyre Silao Mex. Peso 50,000 99.00% PIRELLI Tyre S.p.A.
          1.00% Servicios PIRELLI Mexico S.A. de C.V.
Servicios PIRELLI Mexico S.A. de C.V. Tyre Mexico City Mex. Peso 50,000 99.00% PIRELLI Pneus Ltda
          1.00% Comercial e Importadora de Pneus Ltda
Venezuela
PIRELLI de Venezuela C.A. Tyre Valencia Ven. Bolivar/000 20,062,679 96.22% PIRELLI Tyre S.p.A.
AFRICA
Egypt
Alexandria Tire Company S.A.E. Tyre Alexandria Egy. Pound 393,000,000 89.08% PIRELLI Tyre S.p.A.
          0.03% PIRELLI Tyre (Suisse) S.A.
International Tire Company Ltd Tyre Alexandria Egy. Pound 50,000 99.80% Alexandria Tire Company S.A.E.
South Africa
PIRELLI Tyre (Pty) Ltd Tyre Centurion S.A. Rand 1 100.00% PIRELLI Tyre (Suisse) S.A.
OCEANIA
Australia
PIRELLI Tyres Australia Pty Ltd Tyre Sydney Aus $ 150,000 100.00% PIRELLI Tyre (Suisse) S.A.
New zealand
PIRELLI Tyres (NZ) Ltd Tyre Auckland N.Z. $ 100 100.00% PIRELLI Tyres Australia Pty Ltd
ASIA
China
PIRELLI Tyre Co. Ltd Tyre Yanzhou Ch. Renminbi 1,721,150,000 90.00% PIRELLI China Tyre N.V.
PIRELLI Tyre Trading (Shangai) Co. Ltd (ex-PIRELLI Scientific and Technological Consulting (Shangai) Co. Ltd) Tyre Shangai US $ 700,000 100.00% PIRELLI China Tyre N.V.
Yanzhou Hixih Ecotech Environment CO. Ltd Sustainable mobility Yanzhou Ch. Renminbi 130,000,000 60.00% PIRELLI & C. Eco Technology S.p.A.
Japan
PIRELLI Japan Kabushiki Kaisha Tyre Tokyo Jap. Yen 2,700,000,000 100.00% PIRELLI Tyre S.p.A.
Singapore
PIRELLI Asia Pte Ltd Tyre Singapore Sing. $ 2 100.00% PIRELLI Tyre (Suisse) S.A.
Taiwan
PIRELLI Taiwan Co. Ltd Tyre New Taipei City N.T. $ 10,000,000 100.00% PIRELLI Tyre (Suisse) S.A.

 

INVESTMENTS ACCOUNTED FOR BY THE EQUITY METHOD
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOLDING HELD BY
EUROPE
Germany
Industriekraftwerk Breuberg GmbH Tyre Hoechst/Odenwald Euro 1,533,876 26.00% Pirelli Deutschland GmbH
Greece
Eco Elastika S.A. Tyre Athens Euro 60,000 20.00% Elastika Pirelli S.A.
Italy
A.P.I.C.E. - società per azioni Environment Rome Euro 200,000 50.00% Pirelli & C. Ambiente S.p.A.
Eurostazioni S.p.A. Financial Rome Euro 160,000,000 32.71% Pirelli & C. S.p.A.
Green&Co2 S.r.l. Environment Milan Euro 10,000 49.00% Pirelli & C. Ambiente S.p.A.
GWM Renewable Energy II S.p.A. Environment Rome Euro 15,063,016 16.87% Solar Utility S.p.A.
Idea Granda Società Consortile r.l. Environment Cuneo Euro 1,292,500 49.00% Pirelli & C. Ambiente S.p.A.
RCS MediaGroup S.p.A. Financial Milan Euro 762,019,050 5.33% Pirelli & C. S.p.A.
Serenergy S.r.l. Environment Milan Euro 25,500 50.00% Pirelli & C. Ambiente S.p.A.
Romania
S.C. Eco Anvelope S.A. Tyre Bucarest Rom. Leu 160,000 20.00% S.C. Pirelli Tyres Romania S.r.l.
Spain
Signus Ecovalor S.L. Tyre Madrid Euro 200,000 20.00% Pirelli Neumaticos S.A. -Sociedad Unipersonal
ASIA
China
Sino Italian Wire Technology Co. Ltd Tyre Yanzhou Ch. Reminbi 227,500,000 49.00% Pirelli Tyre S.p.A.

 

OTHER INVESTMENTS CONSIDERED SIGNIFICANT AS PER CONSOB RESOLUTION NO. 11971 OF MAY 14, 1999
COMPANY BUSINESS HEADQUARTER CURRENCY SHARE CAPITAL % HOLDING HELD BY
Belgium
Euroqube S.A. (in liquidazione) Services Brussels Euro 84,861,116 17.79% Pirelli & C. S.p.A.
France
Aliapur S.A. Tyre Lion Euro 262,500 14.29% Pirelli Tyre S.p.A.
Hungary      
HUREC Tyre Recycling Public Benefit Company Tyre Budapest Hun. Forint 50,000,000 17.00% Pirelli Hungary Tyre Trading and Services Ltd
Italy
Fin. Priv. S.r.l. Financial Milan Euro 20,000 14.29% Pirelli & C. S.p.A.
Poland
Centrum Utylizacji Opon Organizacja Odzysku S.A. Tyre Warsawa Pol. Zloty 1,008,000 14.29% Pirelli Polska Sp. ZO.O.
Tunisia      
Société Tunisienne des Industries de Pnéumatiques S.A. Tyre Tunis Tun. Dinar 12,623,472 15.83% Pirelli Tyre S.p.A.
United Kingdom
Tlcom I Ltd Partnership Financial London Euro 1,204 10.39% Pirelli Finance (Luxembourg) S.A.