A note on methodology

Scope of performance reporting

Scope of production sites

Scope of production sites

* Excluded from reporting as specified in the chapter

The reported performance cover the three-year period 2009 – 2011 and the entire scope of Group consolidation, as also illustrated in Volume A of the Annual Financial Report at December 31, 2011. Since the scope of the report is based on the operating-control approach, the Chinese steel cord production site is not consolidated, insofar as it is an associate.

Visibility is also given to the specific performance of the Tyre business in comparison with that of the other businesses (Pirelli Eco Technology, Pirelli Ambiente, PZero, and Corporate entities). The Tyre business includes both its production sites and associated commercial offices.

It should be emphasised that almost the entire environmental impact of Pirelli processes is generated by its production sites (about 97%). As previously specified in the last Sustainability Report, the companies Pirelli Real Estate S.p.A. (now Prelios S.p.A.) and Pirelli Broadband Solutions S.p.A. were sold in 2010.

For the sake of transparent accounting, the numerical tables show the 2009 and 2010 figures related to the two sold entities on a separate line. Instead, the graphics show the three-year trend for 2009 – 2011 on a comparable scope of consolidation basis.

Expansions and new sites

In December 2011, Pirelli Tyre acquired a tyre and steel cord production plant located in Kirov, Russia. Since this acquisition was finalised just a few days before the end of 2011, the environmental performance of this plant has not been consolidated in this report insofar as it did not fall in the scope of Pirelli operations during 2011. This performance will be reported beginning with the Sustainability Report at December 31, 2012.

In 2011, industrial development continued at Slatina, Romania, with expansion of the tyre and steel cord production plant, at Yanzhou, China, with expansion of the tyre manufacturing plant and a steel cord manufacturing plant, and at Silao, Mexico, where work continued on construction of a plant that will make high-performance and ultra-high-performance tyres. This latter plant will start up operation in 2012, so its performance will be reported beginning with the next sustainability report. Each project has been executed by dedicating maximum attention to all environmental issues, from the design of buildings to the definition and installation of processes and production machinery, with the awareness that these choices will impact environmental and other types of performance over the years to come.