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This year, again, we have made ambitious commitments to you and the market. As always, we will approach them with seriousness, rigour and responsibility. Our challenge is not only to achieve them, but to exceed them again. Letter to the shareholders. In the light of these results, we can look to the future with confidence and determination. And we demonstrated this with the presentation of a new industrial plan for the 3-year period 2011-2013, based on a vision of strategy and scenarios that extends to 2015. It is a plan which will see Pirelli focused on satisfying the growing demand from the Premium segment, where our company already excels at the global level, and ready to seize opportunities for geographical diversification linked to the growth of rapidly developing economies and, given the constant increase in the cost of raw materials, also committed to research and the development of agreements in the area of materials as alternatives and complements to the use of natural rubber. The Settimo Torinese project was the result of a constant commitment to research, which was also a factor in one of our greatest successes in 2010: winning the contract as exclusive supplier to Formula One. For the 3-year period 2011-2013, the Pirelli mark will be a protagonist on the most important car circuits of the world. Thank you to all of you, our shareholders, for sharing in our commitment. The strengthening of our financial and asset structure, achieved with the cash flow generated by Pirelli Tyre and through actions to diversify funding sources and lengthen debt maturities taken during the year, allowed us to immediately embark on a new phase of expansion, particularly in rapidly developing countries. Among these expansion projects, I would note Mexico, where Pirelli's first and future plant in the country will also serve Nafta area markets, Russia, where the finalization of agreements with local partners could lead to our having a production capability in the country, China, where we will extend production to include motorcycle tyres, and Italy, where the new technology hub at Settimo Torinese represents a new frontier in terms of product and process innovation, as well attention to sustainability and the environmental quality of the workplace. “We love challenges. To achieve them we rely on our culture of enterprise, vigilant Governance, ambitious Sustainability goals, passion and courage” First of all, strategy. In line with our goal of focusing Pirelli on the industrial activities of Pirelli Tyre, 2010 saw the completion of the process of separation of the real estate activities of Pirelli Re and the disposal of non-strategic activities, with the consequent transformation of Pirelli into a 'pure Tyre company'. This transformation enables a more immediate reading of our industrial strategy and our economic data by the market. In 2010, these data benefited from the worldwide recovery in demand for tyres and our ability to adapt strategies to the economic climate, as well as our continued attention to costs, constant commitment to greater efficiency, financial rigour, and product and process innovation. The business's good performance and the effectiveness of operations' management allowed us to conclude 2010 not only with a result superior to the targets set for 2011, but also with a positive net result notwithstanding the negative impact on accounts of the Pirelli Re operation. The year 2010 was an important one for Pirelli. The targets set in the 2009-2011 industrial plan were reached ahead of schedule and exceeded, both in terms of strategic positioning and in terms of economic results. The chairman Marco Tronchetti Provera.

 

 

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