Reduce Impact, NOT Performance
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2 PIRELLI COMMITMENT FOR SUSTAINABILITY The environment is one of the central planks of the industrial plan that the Group presented at the beginning of Consistent with its announcements at that time, the Group is continuing to develop leading-edge products and solutions in the green economy sector, which offers significant ifi development opportunities in various areas. Marco Tronchetti Provera Moving towards Green Performance Milan, february 11th 2009 Pirelli Group Strategic Plan This is the beginning of the third industrial revolution. We must all become good craftsmen of the environment Pirelli can make the most out of this new business opportunity given our propensity towards innovation Pirelli will be the leader in the Green Performance arena, it will be a substantial and challenging change in our strategic approach For Pirelli sustainability is a core choice, an integral part of the group vision and growth strategy, across all its areas of business and all its management choices
3 GREEN PERFORMANCE AT PIRELLI MEANS The Pirelli group has long had an advanced sustainability governance system for managing the economic, social, and environmental impact associated with its processes, products and services. A 360 Eco- Innovation - from Processes to Products PLANTS Green Processes - ISO is the environmental certification adopted by all plants Green Factory New Polo Torinese, the group-wide leading example A big investment in the biennium 2008/2009 to improve environmental performance of Pirelli Plants PRODUCTS TYRE: enlargement of the Green Range by enhancing Performance and Safety while reducing the Environmental impact DPF System: emission control technologies for eco-sustainable road transportation
4 GREEN PERFORMANCE IN TYRE PRODUCTS MEANS GREEN PERFORMANCE is a commitment to reduce consumption and harmful emissions, increasing mileage and improving safety by using eco-compatible materials ENERGY EFFICIENT Lower rolling resistance reduced fuel consumption reduced CO2 emission CLEAN AIR Manufactured with Highly Aromatic Oil Free compounds and 10% less raw materials less impact on the environment HIGH MILEAGE HIgh mileage that gives great value to the consumer saving money LOW NOISE Optimized tread pattern reduced road noise RETREADABILITY Stronger & recyclable structures longer lasting tyre SA AFETY & PERF FORMANCE ENERGY EFFICIENT On March 10th 2009, the European Parliament has approved dthe Regulation on the General Safety of motor vehicles, that introduces new requirements on tyre performances with respect to fuel efficiency, noise level and wet braking
5 GREEN PERFORMANCE IN REAL LIFE: ROLLING RESISTANCE CINTURATO P7 REFERENCE WET 100 MILEAGE 90 DRY NOISE
6 GREEN PERFORMANCE IN REAL LIFE: FR:01/ TR:01 REFERENCE TEAR RESISTANCE TRACTION Performance Area HANDLING WET BREAKING at a speed of 60 km/h 24.8 m Reference m 12.9% RETREADABILITY 75 BRAKING ROLLING RESISTANCE REDUCTION MILEAGE NOISE 50 Green Area WEIGHT ROLLI NG RESI ST ANCE Rolling Resista ance [%] FR25 FR01 TR26 TR01 Front tyre Rear tyre MORE THAN 3% of fuel cost saving vs. reference tyre RETREADABILITY + MILEAGE: enhanced tyre life-cycle to improve Performance and reduce Environmental impact Reference 1 Mio KM Tyre 1 First Life Tyre 1 Retr.1 Tyre 2 First Life Tyre 2 Retr.1 Tyre 3 First Life Tyre 3 Retr.1 SAVINGS Raw materials -20% Prod. Energy -22% Fuel saving >3% 1 Mio KM Tyre 1 First Life Tyre 1 Retr.1 Tyre 1 Retr.2 Tyre 2 First Life Tyre 2 Retr.1 Tyre 2 Retr.2 Less CO 2 emission
7 TYRE TECHNOLOGICAL TOOLS: MATERIALS MATERIAL BENEFITS ATTITUDE NANOFILLER FUNCTIONALISED POLIMERS Rolling Resistance Weight Reduction Handling Rolling Resistance GREEN GREEN PERFORMANCE GREEN Grip on wet PERFORMANCE & SAFETY HYBRID OVERLAY Wear, Rolling Resistance, Weight GREEN Handling PERFORMANCE
8 TYRE TECHNOLOGICAL TOOLS: VIRTUAL PROTOTYPING COMPUTER SIMULATION FOR ENERGY DISSIPATION COMPUTER SIMULATION FOR SAFETY Thermo-mechanical iterative procedure Energy dissipation estimation Setting of material T C Stress-Strain analysis Internal Tyre Temperature estimation Dynamic and Structural-fluid dynamic procedure Footprint t and tread pattern optimisation i Cornering prediction Aquaplaning INTERNAL TEMPERATURE ( C) DISSIPATED ENERGY DENSITY (mw)
9 GREEN PERFORMANCE IN REAL LIFE: CYBER TM TYRE LEAN The new generation of Tyre Monitoring System THE INTELLIGENT TYRE THAT CAN READ THE ASPHALT CONDITIONS CYBER TYRE TM LEAN MAIN FEATURES Inflation pressure monitoring Temperature e compensated tyre pressure e sensings Compliant to 2012 and future regulations on TPMS With or without battery Full automotive specs, weight <10g Mounting process compliant to VDA standard Tread temperature estimation (cold tyres alert!) Tyre ID (ABS performance optimization, homologated size, max speed index info) Average vertical load wheel by wheel (ABS/ESP performance optimization, suspension diagnostic check, anomalous load distribution on the vehicle) Vehicle centre of gravity indication for ABS/ESP optimization and sensors elimination (cost saving) Tyre mileage counter
10 GREEN PERFORMANCE IN DIESEL PARTICULATE FILTERS MEANS DPF systems are committed to improve emission control technologies, reducing in volume (from -50% to -99%) harmful emissions produced by Diesel engines for PM and No 2 emission. CLEAN AIR New technologies to reduce over 90% of PM, average of 50% of NO 2. Commitment to abat health consequences (WTO reccommendations). TOP ON ROAD PERFORMANCES Wall flow structure for effective filtration, SIC made for a major resistance to temperature stress. EMISSION CONTROL AWARDED Europe, China, Chile approved as top level filtration standard. VERT approved. KBA approved for Germany. Freepass for Low Emission Zones. SUSTAINABILITY Brings circulating vehicles (commercial and heavy duty means) to EURO 4. Freepass for Low Emission Zones. DED LOGIES AWAR TECHNOL GREEN PERFORMANCE EMISSION CONTROL INTERNATIONAL APPROVAL Thanks to the installation of Pirelli DPF Systems, most of the Diesel vehicles for commercial transport, heavy duty, turistic (autobus) and municipal (buses and cleaning), can reduce the PM emission levels below the limits required from the local administrations: EURO4.
11 GREEN PERFORMANCE IN REAL LIFE: PIRELLI FEELPURE TM AR FEELPURE TM AR IS AN ADVANCED TECHNOLOGY FOR APPLICATION WITH GAS TEMPERATURES LOWER THAN 200 C APPROVED ACCORDING TO LOCAL LEGISLATION Innovation: allowing big fleets of public and private transport operators (buses, garbage collection) work in critical conditions such as stop&go traffic The Feelpure TM A/R system satisfies special needs of this type of working. Fleets circulating in Low Emission Zones are required to reach EURO4 levels and a Feelpure TM DPF system application allows to reach this target also. FEEL PURE TM AR FOR CITY USE UPGRADES CIRCULATING MEANS FROM EURO TO EURO 4
12 DPF TECHNOLOGICAL TOOLS SILICON CARBIDE developed by Pirelli enables: Design flexibility of the filters Porosity Average of the holes dimensioning Mechanical resistance. WALL FLOW STRUCTURE The effective choice for pollution abatment: more than 90% of PM reduced by mass (99% by number thanks to: Resistant to high temperatures (does not melt, resists oxidative atmosphere up to 1500 C) Optimal thermal conductor High mechanical resistant: optimal mechanical strength due to the honeycomb structure and material processing High filtering efficient: thanks to the plugged wall-flow ceramic structure Guarantees the filtration of over 90% of PM particles.
13 A STRONGLY RECOGNIZED SUSTAINABLE PERFORMANCE Worldwide leader in Auto-parts and Tyre industry for the 3 CONSECUTIVE YEAR (SAM Assessment for Dow Jones Sustainability Indexes) Best in class for Economic, Environmental and Social dimension Pirelli 2009/10 rating: 88% (+11pp yoy) vs. Autoparts t & Tyre average 48% rating Included in all major sustainability global indexes since early 2000s:
14 Thank you for your attention Roberto Sangalli
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