Material presented at: MANUCORE - SUPPLY CHAIN LEADERSHIP FORUM, EUROPE - 5-7 March 2018, Warsaw, Poland. Marcelo describes the transformation of Pirelli into a “pure consumer tyre company” and how the company’s digital strategy is driving the reinvention of its products, business model and ways of working. He offers a few lessons learned for companies going through similar transformations as well as outlines his vision on how the major technology trends will impact the way companies operate in the future.

1. MANUCORE
SUPPLY CHAIN LEADERSHIP FORUM
WARSAW, MARCH 5-7, 2018
Marcelo De Santis, Group CIO
THE JOURNEY TOWARDS
DIGITAL PRODUCTS AT
PIRELLI

2. • Marcelo is a Business Technology leader with +20 years of
experience creating business value at the intersection of people,
data & technology across different industries - CPG, telco,
consulting, financial & automotive. He lived and worked in United
States, Latin America, Asia Pacific and Europe.
• Marcelo strongly believes in the power of an entrepreneurial,
collaborative and agile team culture to accelerate results.
• Determined to make a difference in the world, he mentors and
supports startups & NGO working on improving the lives of
underprivileged children.
• Marcelo is currently the Group CIO at Pirelli, and provides
leadership to the digitization of company products and business
processes.
ABOUT MARCELO

3. AGENDA
PIRELLI: THE JOURNEY TOWARDS DIGITAL PRODUCTS
A PERSPECTIVE ON TECH TRENDS (FROM THE CIO SEAT)
1
2

4. PIRELLI - ICONIC BRAND GLOBALLY RECOGNISED

5. 1Excluding non recurring, one-off and extraordinary items and startup costs. Source: Pirelli FY2017 Group data
2Percentage based on 2016 Consumer revenues net of Moto only. Source: FY 2016 carve-out Consolidated financial statements consumer business only, Pirelli
estimates on third party data
Revenues
€5,352 Mln
Adj. EBIT1
€927 Mln
(Margin 17,3%)
Car
93% of revenues2
Moto
7% of revenues2
HQ & Worldwide R&D center
in Milan
presence in 6 REGIONS
19 FACTORIES
in 13 COUNTRIES
~14,600 POS
in 160 COUNTRIES
almost 50%
Market Share
Prestige Car
Manufacturers
Long standing partnership with
Exclusive supplier
#1
PIRELLI: PURE CONSUMER TYRE COMPANY; FOCUS ON HIGH VALUE

6. THE JOURNEY STARTED HERE: 4 MAJOR AUTOMOTIVE TRENDS
AUTONOMOUS DRIVING
Shift from human driven to
self driven
SHARED MOBILITY
Shift from car ownership to
transportation as a service
ELECTRIC CARS
Shift from internal
combustion to
electric engines.
1 2 3
Electric vehicles to be 30% of
new car sales by 2040
(currently is 1%).
- IHS Markit
Car sharing market revenue
USD 16.5 billion by 2024
- Global Market Insights
L4 & L5 to reach 4% of new
vehicle sales by 2030;
up to 55 % by 2040.
- Center for Automotive Research

7. CAR CONNECTIVITY: CONSUMERS HAVE ALL TYPES OF INFO.
V2V/V2X communication engine efficiency battery storage driver safety navigation/mapping
adas/car automation
auto repair
tyres
connected car
vehicle cybersecurity
AN OPPORTUNITY: INFORMATION ABOUT THEIR TYRES
4

8. PIRELLI DIGITAL PRODUCTS
Shared
Connected
Monitoring of tyres’ conditions,
via smartphone
or car electronics.
Cloud based solutions for
fleets, enabling TCO reduction
and higher uptime of vehicles
D
A
T
A
C
O
L
L
E
C
T
I
O
N
S
E
R
V
I
C
E
S
C
U
S
T
O
M
E
R
C
E
N
T
R
I
C
Autonomous
Integrated real-time analysis of
tyres and car performance, for
the safest autonomous drive
Electric
Ultra
Low
Rolling
Resistance
Homologation of «Green»
tyres (A-label RR), specifically
designed for electric cars

9. AN EXAMPLE OF A PIRELLI DIGITAL PRODUCT:
4
3
2
1
5
6

10. MANY BUSINESS OPPORTUNITIES ARISING FROM

11. PIRELLI IS ALSO DIGITIZING ITS CORE BUSINESS & OPERATIONS
SMART
MANUFACTURING
INTEGRATED
FORECASTING
DIGITAL
PLATFORMS

12. RETROSPECTIVE : WHAT DID WE LEARN?

13. AGENDA
PIRELLI: THE JOURNEY TOWARDS DIGITAL PRODUCTS
A PERSPECTIVE ON TECH TRENDS (FROM THE CIO SEAT)
1
2

14. ARTIFICIAL INTELLIGENCE: FROM “KNOW-HOW” to “DO-HOW”

15. INTERNET OF THINGS: WHEN EVERY-THING HAS A VOICE

16. BLOCKCHAIN: THE INTERNET OF TRUST

17. DATA: IT’S AT THE CORE

18. “ The first responsibility of a leader
is to define reality.
The last is to say thank you.
In between, the leader is a servant. ”
- Max de Pree
THE JOURNEY STARTS HERE: 4 MAJOR AUTOMOTIVE TRENDS

19. TECH INNOVATION IS TURNING THINGS “UPSIDE DOWN”

20. SOME LOVE THE FEELING ...

21. OTHERS … NOT SO MUCH...

22. WHY ?

23. TECH INNOVATION IS CHALLENGING TRADITIONAL RULES …

24. … AT A VERY FAST PACE.

25. BUT, WHEN EVERYONE IS MOVING FAST: BEING FAST IS NOT ENOUGH

26. SPEED
ACCELERATION
.. IT’S NOT ANYMORE ABOUT SPEED …
IT’S ABOUT: HOW FAST DO WE GET FAST?

27. IT’S ABOUT … HOW FAST DO WE LEARN THE NEW …
YOU MUST
UNLEARN
WHAT YOU HAVE
LEARNED

28. … TO ADAPT

29. THIS IS OUR LEADERSHIP MOMENT

30. LET’S ACCELERATE

31. LET’S BE BOLD

32. LET’S BE RESPONSIBLE

33. AND REMEMBER THAT …
”POWER IS NOTHING WITHOUT CONTROL”

34. THANK YOU