19. SECURITIES HELD FOR TRADING

Securities held for trading amounted to euro 160,503 thousand (euro 209,770 thousand at December 31, 2010) and consisted of:

unlisted floating-rate bonds for euro 158,318 thousand;
unlisted fixed-rate bonds for euro 1,130 thousand;
equities for euro 1,020 thousand, including euro 832 thousand in listed stock;
other securities for euro 35 thousand.

The fair value of listed financial assets corresponds to their stock market price at December 31, 2011.

The fair value of unlisted financial instruments was estimated using the best information available.

The changes in fair value are recognised in the income statement at “Financial expenses” (note 37).

DATAHIGHLIGHTS

Historic trend

	2011	2010	2009 :	2008	2007
(in millions of euro)
GROUP INCOME STATEMENT
Net sales	5,655	4,848	4,067	4,660	6,076
Net sales (excluding DGAG - PRE) *				4,660	4,780
Gross operating profit	807	629	453	252	573
% of net sales	14.3%	13.0%	11.1%	5.4%	9.4%
Operating income	582	408	250	43	364
% of net sales - ROS	10.3%	8.4%	6.1%	0.9%	6.0%
Net income (loss) from continuing operations	313	228	77
Net income (loss) from discontinued operations	-	(224)	(100)
Prior period deferred tax assets - Italy	128	-	-
Total net income (loss)	441	4	(23)	(413)	324
Net income attributable to owners of Pirelli & C. S.p.A.	452	22	23	(348)	165
Total net earnings (losses) per share attributable to owners of Pirelli & C. S.p.A. (in euro)	0.926	0.045	0.047 °°	(0.065)	0.031

TYRE INCOME STATEMENT
Net sales	5,602	4,772	3,993	4,100	4,162
Gross operating profit	858	661	501	341	549
% of net sales	15.3%	13.9%	12.5%	8.3%	13.2%
Operating income	644	453	309	151	358
% of net sales - ROS	11.5%	9.5%	7.7%	3.7%	8.6%

GROUP BAlANCE SHEET
Non-current assets	3,558	3,164	3,596	3,665	3,815
Net working capital	399	303	427	600	551
% of net sales	7.1%	6.2%	10.5%	12.9%	11.5%
Total net working capital	155	117	222	418	298
% of net sales	2.7%	2.4%	5.5%	9.0%	6.2%
Net invested capital	3,713	3,281	3,818	4,083	4,113
Equity	2,192	2,028	2,495	2,374	3,804
Provisions	784	797	795	681	611
Net financial (liquidity)/debt position	737	456	529	1,028	(302)
Equity attributable to owners of Pirelli & C. S.p.A.	2,146	1,991	2,175	2,172	2,980
Equity per share attributable to owners of Pirelli & C. S.p.A. (in euro)	4.40	4.08	4.46°°	0.40	0.56

OTHER GROUP INFORMATION
Net operating cash flow	156	310	496	(147)	299
Depreciation and amortization	221	217	198	199	214
Capital expenditure - tangible	618	433	225	311	287
Capital expenditure/depreciation	2.80	2.00	1.14	1.56	1.34
Research and development expenses	170	150	137	156	173
% of net sales	3.0%	3.1%	3.4%	3.3%	3.6%
Headcount (at 12/31)	34,259	29,573	29,570	31,056	30,823
of whom temporary workers	2,649	2,426	2,245	2,913	3,642
Sales * per employee (in thousands of euro)	181	160	138	148	155
Operating income/Net invested capital ** - ROI	16.64%	11.49%	6.33%	1.05%	6.33%
Net income (loss)/Equity ** - ROE	20.89%	0.18%	(0.94%)	(13.37%)	7.63%
Net financial position/Equity - Gearing	0.34	0.22	0.21	0.43	n.s.

: Comparative income statement figures for 2009 related to Pirelli Real Estate and Pirelli Broadband Solutions business units, discontinued in 2010, have been reclassified to “net income (loss) from discontinued operations” °° 2009 per share figures have been reclassified on a comparable basis after the reverse stock split pursuant to the Shareholders’ Meeting resolution of July 15, 2010 * Excluding net sales for deconsolidation of DGAG real estate assets ** Average amounts

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19. SECURITIES HELD FOR TRADING

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