Factors
1)
-In 2013, consolidated net sales increased by 1.2% in spite of large, negative translation effects. This was accomplished thanks to an increase in premium segment sales and a growing contribution made by emerging markets.

2)
-In 2013, net sales by the Tyre Business, which generates 99.5% of Company net sales, increased by 1.4%. The total Tyre Business reported higher volumes both in the consumer business, driven by sales to the South America and good performance of the premium segment in China, NAFTA and Europe, and in the industrial business, where growth was focused on South America.

Joint Development
-In December 2013, the Company, Rosneft and Oil Techno have signed a Memorandum of Understanding for joint research and development relating to synthetic rubber, in particular Styrene-Butadiene Rubber (SBR), in Armenia. Under the terms of the MOU, Rosneft, a Russian oil company, will be the leading investor in the SBR operation in Armenia and Oil Techno will be the local partner. For its part, Pirelli will cooperate jointly with Rosneft in research and development activities to develop SBR and is interested in entering into a long-term supply agreement to purchase the SBR produced. (From a press release on December 27, 2013)

-In November 2013, the Company, Rosneft, a Russian oil company, and Rostec, a Russian national company, signed a Memorandum of Understanding with regard to a joint research and development agreement in the area of materials to be used in the manufacturing of tires. The companies plan to cooperate for the purpose of research and development in the field of high-tech synthetic rubber and reinforcing materials, which includes carbon nanotubes. (From a press release on November 26, 2013)

R&D Activity