Added value means the wealth created over a given reporting period, calculated as the difference between the revenues generated and the external costs sustained in the period.
The distribution of added value between stakeholders enables the expression in monetary terms of the existing relations between Pirelli and the major stakeholders, thus shifting attention to the socio-economic system in which the Group operates, as shown in the diagram below.
SOCIO-ECONOMICS SYSTEM OF PIRELLI GROUP
The added value created by the Pirelli & C. S.p.A. Group in 2013, 2012 and 2011 is broken down as follows.
breakdown of added value
|Global added value, gross||2,217,739||2,210,618||1,918,054|
|Remuneration of employees||(1,210,928)||54.6%||(1,205,608)||54.5%||(1,123,507)||58.6%|
|Remuneration of Public Administration||(210,392)||9.5%||(200,837)||9.1%||(34,457)||1.8%|
|Remuneration of borrowed capital||(195,832)||8.8%||(192,471)||5.9%||(89,440)||4.7%|
|Remuneration of risk capital||(156,743)||7.1%||(132,382)||6.0%||(81,151)||4.2%|
|Remuneration of the Company||(438,682)||19.8%||(537,259)||24.3%||(584,435)||30.5%|
The growth in added value created in 2013 is 0.3%, compared with 2012, and 15.6% vs 2011.
The trends of the items that determine total gross added value, as shown above, are explained fully in Volume 01: Annual Financial Report at December 31, 2013, to which the reader is referred for details.
Account must also be taken of the value generated by the price increase of Pirelli shares on the stock market. Their market performance in 2013 confirmed Pirelli as one of the best stocks in the European Auto & Parts sector, with a 45.3% increase, thus significantly outperforming the Italian Blue Chip index (+28.7 percentage points compared to the MIB FTSE) and the European sector index (+8 percentage points compared to Stoxx auto).
With reference to outside donations, the following table shows the amount of contributions and donations disbursed by Pirelli in the years 2013, 2012 and 2011, broken down by category.
breakdown of outside donations 2011-2013
|Sector of action||2013||2012||2011|
|Culture and Research||4,003||3,859||3,319|
For the correct sizing and proportion of the expense in the various sectors of intervention it must be considered that the data are consolidated in euro even though the sums were mainly disbursed in the local currencies in the various different countries in which Pirelli works, many of which are emerging markets/developing economies. This is particularly true for the Education and Solidarity categories. Paradoxically, the reported amounts, which are less in absolute terms than the amount allocated to Culture and Research, were instead used to finance a large array of development projects in the grant recipient countries.
We invite you to refer to Chapter 4 – Social Dimension for descriptive details of the main initiatives correlated with the disbursals indicated above.
Finally, the Group “does not provide contributions, advantages, or other benefits to political parties or trade union organisations, nor to their representatives or candidates, this without prejudice to its compliance with any relevant legislation”
(Values and Ethical Code – The wider Community).