Trend of purchases

The Pirelli Tyre core business in 2013 accounts for 97% of Group purchases (vs 96% in 2012).

The following tables show the value of purchases made by Pirelli Tyre and the percentage of the relative suppliers divided by geographical area. The provided information reveals that the value of purchases in OECD areas is approximately the same as the value of purchases in non-OECD areas, while the number of suppliers is slightly higher in OECD areas.

Note that 78% (vs 76% in 2011) of suppliers – excluding raw material suppliers - operate locally with respect to the supplied Pirelli Tyre affiliates, in accordance with a “local for local” supply logic.

PERCENTAGE VALUE OF PIRELLI TYRE PURCHASING BY GEOGRAPHICAL AREA

  2013 2012 2011 
OECD Countries Europe 40.2%  42.7%  43.2% 
North America  3.0%  2.7%  2.6% 
Others 2.8%  2.6%  1.3% 
Non-OECD Countries Latin America 20.2%  26.8%  27.0% 
Asia  19.5%  15.5%  18.9% 
Africa  1.2%  1.0%  1.0% 
Others 13.0%  8.7%  6.1% 

PERCENTAGE OF PIRELLI TYRE SUPPLIERS BY GEOGRAPHICAL AREA

  2013 2012 2011 
OECD Countries Europe 47.5%  51.6%  59.2% 
North America  3.0%  3.6%  3.3% 
Others 2.2%  1.9%  0.3% 
Non-OECD Countries Latin America 28.0%  30.1%  25.5% 
Asia  8.8%  4.5%  5.2% 
Africa  2.2%  2.1%  1.2% 
Others 8.3%  6.2%  5.3% 

The following table shows a breakdown of the percentage value of Pirelli Tyre purchases by type. It reveals that the largest and most significant purchasing category concerns raw materials, with an incidence on total purchases in 2013 of 60.5%, substantially in line with the figure for 2012 and on which impacted the increase in prices that characterised the year.

PERCENTAGE VALUE OF PIRELLI TYRE PURCHASING BY TYPE

 2013 2012 2011 
Raw materials 60.5%  58.4%  58.5% 
Supplies 5.1%  4.4%  4.6% 
Services 25.0%  26.5%  23.8% 
Capital goods 9.4%  10.8%  13.1% 
Total 100%  100%  100% 

With reference to the percentages of Pirelli Tyre suppliers by type and number as at the following table, already from 2010 the consumables and services suppliers categorisation criteria had been defined. The sum of the number of operators in the two categories remains in excess of 80% of the total, even though the incidence on total purchases is significantly lower than, for example, that of raw material purchases. The fragmentation of consumables and services suppliers is clearly visible compared to the substantial concentration of raw materials purchases over a small number of operators.

PERCENTAGE OF PIRELLI TYRE SUPPLIERS BY TYPE OF PURCHASE

 2013 2012 2011 
Raw materials 2.6%  3.0%  2.8% 
Supplies 34.6%  38.9%  40.5% 
Services 51.4%  46.1%  46.2% 
Capital goods 11.4%  12.0%  10.5% 
Total 100%  100%  100% 

Finally, the following table shows the percentage breakdown by value of the mix of raw materials purchased by Pirelli Tyre in 2013, 2012 and 2011. With respect to 2012, in 2013 we see an increase in the incidence of synthetic rubber, chemicals and textiles versus a reduction of natural rubber due to the general price of rubber and the production mix.

The volume of raw materials utilised for the production of tyres in 2013 amounted to approximately one million tonnes, of which approximately 6%, in line with the previous year.

PURCHASED RAW MATERIALS PURCHASED BY PIRELLI TYRE MIX (BY VALUE)

 2013 2012 2011 
Natural rubber 24%  26%  35% 
Synthetic rubber 29%  31%  27% 
Carbon Black 13%  12%  11% 
Chemicals 16%  14%  12% 
Textile 11%  10%  8% 
Steel cord 7%  7%  7%