Financial communication

In 2011 Pirelli further intensified meeting occasions with investors on major financial markets (Milan, London, Edinburgh, New York, Boston, San Francisco, Los Angeles, San Diego, Paris, Frankfurt, Zurich, Copenhagen and Stockholm), visiting Asian markets (Shanghai, Singapore, Hong Kong and Beijing) and Latin American markets (São Paulo) for the first time.

During the year, Pirelli met with 510 institutions, comprised of both current and prospective investors (25% more than the previous year) during dedicated road-shows and participation at industry conferences.

Formula 1 also represented a major opportunity for strengthening ties between the financial community and Pirelli . During the 2011 Grand Prix races (from Monte Carlo to Singapore, from Montreal to Monza, etc.), Pirelli organised meetings with financial analysts and leading local investors with detailed sections dedicated to technology, product, brand and distribution.

To increase equity investments by United States investors, Pirelli launched the level 1 (over-the-counter) ADR (American Depositary Receipts) programme in cooperation with JP Morgan in 2011. Since November 2011 American investors may invest in Pirelli through dollar-denominated financial instruments.

In 2011 the Company continued its dialogue with socially responsible investors through participation at international conferences on governance and sustainability issues and organisation of road-shows dedicated to SRI funds in major financial centres, particularly in Great Britain, The Netherlands, Germany, France, Switzerland and the United States.

Pirelli has also improved communication with individual investors by creating a web space dedicated to retail investors, found in the Investors section of the institutional website. This allows users to keep up to date on the principal corporate events, stock performance, strategy implementation, business evolution, earnings results, and Pirelli and PZero innovation and products. The services offered include: the weekly stock market report, calculation of the stock return on investment, the quarterly newsletter IN, Blog (Investor Channel), E-mail/SMS Alert, and more.

Finally, coverage of Pirelli stock by leading investment banks was extended. At December 31, 2011, 24 brokers publish periodic reports on Pirelli (21 in 2010), of which 43% are global (25% at December 31, 2008). The stock reached a market price of euro 8.74 (average target price) at December 31, 2011, compared with euro 7 in January 2011. The most frequent recommendation given by analysts (88%) was “buy.”

The variation in Pirelli stock price over 2011, as illustrated in the following graphic, confirms that it was the best-performing stock of its sector in Europe: +7.5% vs. –24% for DJ Stoxx Auto&Parts.

FY2011 stock price performance

FY2011 stock price performance

For more details, reference is made to the “Investors” section of the website
It provides a complete, updated information tool for matters of interest to shareholders and the financial community.