marco tronchetti provera - creating sustainable value
DESCRIPTION
Marco Tronchetti Provera - Industrial PlanTRANSCRIPT
CREATING SUSTAINABLE VALUE
Marco Tronchetti ProveraChairman and CEO
CORPORATE SUSTAINABILITY IS A CORE PIRELLILONG TERM STRATEGY
Pirelli’s sustainable approach includes: the whole corporate value chain
all stakeholders’ interests and expectations
to preserve and enhance the value of all Group assets
Shareholders, Investors, Financial
Community
Employees Customers
Suppliers
Environment
Public Authorities
Local Communities
Competitors
Socialdimension
Economicdimension
Environmental dimension
2
INTERNATIONAL ACCOMPLISHMENTS
At the forefront in the development of products combining performance and sustainability (“green performance”)
International Awards
2008 2009 2010
36%25%19%
% Green revenuesof total Pirelli sales
Cinturato P7: Max rating from Autobild
for the perfect balance among:
energy efficiency
performance
safety
IndustryLeadership
GreenPerformance
products
For the 4th consecutive year, global sustainability leader in the Auto Parts and Tyre Industry
Well ahead of industry peers in several key sustainability dimensions: Corporate Governance Code of conduct/compliance Quality in the work place Supply chain sustainability Human capital development
Widely present in Social Responsible Investors portfolio
3
CORPORATE GOVERNANCE: THREE PILLARS
Key management role and accountability of the Board of Directors1
Effective risk management process2
Long term value creation among the drivers of Top Management remuneration
3
4
BOARD OF DIRECTORS
Vast majority of the 20 Board members are non-executive and independent Directors
2 “Governing” Board committees composed exclusively of independent Directors
Board’s key role:
Addressing strategic guidelines (industrial and financial plans)Monitoring management performance
Overseeing risk management processesManaging conflicts of interest
5
1
NEW RISK MANAGEMENT PROCESS
6
2
Value driven Focus on risks threatening strategic targets and assets
Fully integratedHorizontal to the organization in the industrial and financial
planning processes
Proactive and responsive Leading to recovery plans and mitigation actions supporting
the annual management plan
“Top down” approachEnabling the Board of Directors and Top Management to
oversee, assess and manage risk in all key business decisions
Alignment of executive remuneration to shareholders’ value creationMore than 70% of Management’s variable compensation linked to the financial
targets of the 2011-2013 industrial plan
Incentive scheme applied to the entire management team
Introduction of innovative retention mechanismsPart of the annual variable compensation retained in a “Bonus bank” to boost
commitment to long term results
LONG TERM INCENTIVE SYSTEMS
7
3
THE 2011-13 SUSTAINABILITY PLAN INTEGRATESTHE INDUSTRIAL PLAN IN THREE KEY AREAS
Sustainability Plan 2011-13 Architecture
Socialdimensio
n
Economicdimension
Environmental
dimension
8
SOCIAL DIMENSION
Launch of a yearly revised safety program for all plants worldwide
Push Pirelli’s Total Quality approach through:sustainable joint development partnerships extensive third-party independent audits on suppliers’ compliance
Pro-active membership, dialogue and cooperation with: Public Authorities and NGOs* High level institutional bodies
for shared local and international economic, social and
environmental development
......... .........
Health & Safety
HR and organization development
Supply chainmanagement
Localcommunities & international partnerships
* Non Governmental Organizations
Focus on employees’ welfare Increase diversity in management
Pursuing a shared growth
9
ENVIRONMENTAL DIMENSION
ProductProduct
Further and aggressive reduction of consumption / emissions
ProcessProcess
Settimo Torinese Plant opening in 2011:PlantsPlants
Towards carbon &
water footprint
Towards carbon &
water footprint
Green procurement rules
Greener & performance across all market segments
- 35%- 35%
- 15%- 15%
~ -15%~ -15%
Water specific consumption Energy specific consumption CO2 specific emissions
2009 2015 2009 2015 2009 2015
17.6 14.1 1.07
m3/ton of finished product GJ/ton of finished product ton/ton of finished product
Taking care of the planetBiomaterials
10
2010 2011 2013
47%39%36%% Green revenues
of total Pirelli sales2015
~60%
Green product revenuesGreen cost optimizationLower cost of capital from
de-risking programs
Main Value Leverage
ECONOMIC DIMENSION
Employer of choiceBrand equity increaseTrust from society
Main Intangible Assets
Gaining from Sustainability
11
Sustainability Plan 2011-13
Sustainability Plan 2011-13
Industrial Plan 2011-13
Industrial Plan 2011-13
DISCLAIMER
This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA’s current expectations and projections about future events and does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of the financial community. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activities and situation relating to the Company. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those expressed in or implied by these forward looking statements as a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely. Consequently it is recommended that they be viewed as indicative only. Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of unanticipated events. The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests – as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) – that all the accounting information contained in this presentation correspond to the documented results, books and accounting of the Company.
12