Pirelli & C — Interim / Quarterly Report 2025

May 14, 2025

May 14th, 2025 1Q 2025 Results

PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

Milan

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2 PIRELLI & C. – 1Q 2025 RESULTS
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3	FY 2025 OUTLOOK AND TARGETS
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4 APPENDIX
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PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

Key messages

1Q'25 results confirming the strength of our strategy in a very challenging external scenario:

• Organic growth (+4.7% yoy) driven by solid commercial performance:
  • market share gain in ≥18" Replacement across regions
  • solid price/mix (+3.9% yoy) supported by mix enhancement and OE indexation clauses
• Profitability improvement driven by internal levers, with efficiencies fully covering inflation
• Cash flow trend in line with business seasonality

FY 2025 outlook and targets confirmed

• Despite the current environment, Consumer Demand still holding with High Value outperforming Standard
• High level of uncertainty on tariffs due to the ongoing international negotiations with the US administration
• A mitigation plan is already in place to guarantee should current tariffs be maintained for the full year the Adjusted Ebit target and cash generation at the lower end of guidance, therefore achieving the deleveraging target

Governance update

• The negotiations with major shareholders have concluded, at present without a positive outcome
• Pirelli remains confident to find a solution to comply with US regulation

1Q 2025 results highlights

Solid operating performance, improving in all metrics

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3	FY 2025 OUTLOOK AND TARGETS
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4 APPENDIX
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PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

1Q 2025 Strategic programs delivery

COMMERCIAL	Car ≥18'' (OE+Repl): +5% Pirelli vs +4% Mkt Global H.V. leadership further Mkt share gain in HV Replacement supported by OE pull-through strengthened and new Replacement lines Partnership with CTS to strengthen Nordics distribution
INNOVATION	2 products launched for Car and 2 for Motorcycle New products & award wins Award-winning products in both Car & Moto (Cinturato C3, Cinturato SF3 and Diablo Supercorsa V4 SP)
	OEMs new engagement for the development of integration project Cyber Tyre Partnership with Movyon for road surface monitoring
OPERATIONS	Increasing efficiencies €25M gross savings, in line with programs seasonality
	~91% capacity utilization Improving operations and environmental footprint Plant decarbonization progressing through the electrification of curing presses

Commercial Program 1Q25

Share gain in HV Replacement, lower exposure to Standard driven by mix improvement strategy in South America

Innovation Program 1Q 2025: 4 new HV product lines, boosting the performance level

New Car Products New Motorcycle Products

New

The summer tyre designed for Premium cars

• Excellent braking performance
• 'A' rating on wet across the entire range
• 20% mileage increase & lower rolling resistance

"Strong dry performance, excellent dry handling and impressive wet performance"

Intended for performance cruiser motorcycles

• Custom-touring tyre with a sporty attitude
• Excellent handling and grip even in wet conditions.
• Slick shoulder for better grip in dry conditions

Result of experience in the

Establishing new level of performance in All Terrain segment

• Tailored for both ICE and NEV trucks
• Extreme off-road performance and on-road stability
• High mileage and durability

The champions tyre for mid-soft terrains

• New front for greater braking and easier cornering
• Rear with increased traction out of turns
• Enlarged versatility also on mid-hard pack

3PMSF rating Result of experience in the

Efficiencies program 1Q 2025

In line with expectations and programs seasonality

		FY 2025 GUI	1Q 2025	MAIN PROJECTS
	Product Cost		accelerating from Q2	Design Modularity (tyre structure, weight and cost optimization).
				High tech automation solutions in finishing, handling and material flow
	Manufacturing		~20% of FY	Digital solutions to increase productivity, quality and flexibility
				efficiency through curing electrification and B.E.M.S.1 Energy
SG&A			~30% of FY	Warehouse efficiencies and distribution optimization
				Supplier base rationalization and centralization
	Organization		~35% of FY	Upskilling and change in the mix of competencies
	Total Gross Impact	~€150M	~16% of FY

1Q 2025 Sales bridge

Mid single-digit organic growth supported by a solid commercial performance

Volumes: positive performance supported by HV growth, whereas reducing exposure to Standard

Price/Mix improvement driven by consistent product mix enhancement and slight price contribution (indexation clauses)

Forex trend in 1Q discounting both USD appreciation and depreciation of emerging markets' currencies

1Q 2025 Adjusted EBIT

Profitability improvement driven by internal levers, more than offsetting raw materials & input costs headwinds

Price Mix more than offsetting Raw Materials headwind, mainly Natural Rubber and Oil

• Efficiencies are progressing in line with expectations and programs seasonality, fully offsetting inflation impact
• FX positive impact mainly linked to Mexican peso depreciation and USD appreciation

1Q 2025 Net Income

Earnings growth thanks to higher operating performance and lower financial expenses, partially offset by higher taxes € million

• Financial Income & Expenses: for a total -€59M (-€110M in 1Q'24) including -€6M non-cash impact (-€46M in 1Q'24) linked to forex and hyperinflation
• Taxes: higher than 1Q'24 which was benefitting from positive effect of tax litigation settlement in addition to Patent Box incentive

1Q 2025 Net Financial Position

Net Cash Flow in line with business seasonality

Inventory at ~22.0% (vs 21.4% in 1Q'24 and 21.7% FY24), discounting higher mix inventory build-up in US in light of announced tariffs

Receivables at ~14.6% and Payables at ~23.5% in line with business seasonality

Gross Debt structure as of March 31th 2025

Liquidity margin covers 3.5 years of debt maturity protecting the company in current volatile markets. ESG linked financings on track with 2025 targets

2	PIRELLI & C. – 1Q 2025 RESULTS
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3 FY 2025 OUTLOOK AND TARGETS
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4	APPENDIX
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PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

Car Tyre demand in 2025: outlook confirmed

Replacement Consumer Demand still holding. Potential impact of GDP slowdown to be monitored

• OE: declines low-single digit due to weak car production in EU & North America
• REPLACEMENT: flat / slightly positive in EU, slightly negative in North America and China
• Car ≥18'': mid-single digit demand for Replacement, while OE still weak
• Car ≤17": demand declines YoY both on OE & Replacement

Pirelli expects to gain share on High Value, while keeping on reducing exposure to Standard

Import flows and inventory

Crash program at Group level

optimization

US commercial agreements review

Cost cutting

Pirelli in US: update on tariffs and mitigation plan

FY 2025 Targets confirmed

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	2024	2025
€ billion	Actual	Guidance
Net Sales	6.77	~ 6.8 ÷ 7.0	Volumes: ~ +1% ÷ +2% Price/Mix: ~ +2% ÷ +3% Forex: ~ -2.5% ÷ -1.5%
Adj. EBIT Margin	15.7%	~ 16%
CapEx % of Sales	0.42 6.1%	~ 0.42 ~ 6%
Net Cash Flow bef. Dividends	0.53	~ 0.55 ÷ 0.57
Net Financial Position NFP / adj. EBITDA	1.93 1.27x	~ 1.6 ~ 1.0x
ROIC*	23.2%	~ 23%

The US tariff scenario is still evolving, with negotiations going on between the US and its major commercial partners. The impact and duration of duties remain uncertain. Should current tariffs be maintained for the full year, a mitigation plan is already in place to guarantee the Adj. Ebit and cash generation targets at the lower end of the guidance, therefore achieving the deleveraging target.

2 PIRELLI & C. – 1Q 2025 RESULTS
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3 FY 2025 OUTLOOK AND TARGETS
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4 APPENDIX
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PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

Economic results summary

	1Q 2025	1Q 2024	A YoY
Net Sales	1,758.6	1,695.5	+3.7%
Organic variation			+4.7%
adjusted EBITDA1	399.0	376.3	+6.0%
% of net sales	22.7%	22.2%	+0.5 p.p
reported EBITDA	387.5	368.6	+5.1%
% of net sales	22.0%	21.7%	+0.3 p.p
adjusted EBIT	279.8	262.6	+6.5%
% of net sales	15.9%	15.5%	+0.4 p.p
reported EBIT	239.9	226.5	+5.9%
% of net sales	13.6%	13.4%	+0.2 p.p
Net income / (loss) from equity investments	5.8	6.0	-3.3%
Financial income / (expenses)	(59.5)	(110.1)	-46.0%
EBT	186.2	122.4	+52.1%
Taxes	(59.0)	(22.0)	n.m.
Tax rate %	-31.7%	-18.0%
Net Income / (loss)	127.2	100.4	+26.7%
Earnings / (loss) per share (€ per share)	0.12	0.09
Net income / (loss) adjusted	155.6	126.2

Consolidated Balance Sheet

€ million

	31/03/2025	31/12/2024	31/03/2024
Fixed assets	8 723 1 ,	8 771 6 ,	8 826 3 ,
Net working capital	889 7	51 2	982 9
% of sales net	13 0%	0 8%	14 8%
invested capital Total net	9 612 8 ,	8 822 8 ,	9 809 2 ,
Equity	6 013 1 ,	5 912 3 ,	5 868 7 ,
Provisions	977 2	984 7	1 005 4 ,
financial position Net	2 622 5 ,	1 925 8 ,	2 935 1 ,
Total financing and shareholders' equity	9 612 8 ,	8 822 8 ,	9 809 2 ,
Attributable equity net	842 4 5 ,	756 1 5 ,	5 734 5 ,
debt1 financial Total net	2 730 4 ,	2 034 4 ,	3 063 5 ,

Net Cash Flow

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€ million

Sustainability: delivering on Plan targets*

				2023	2024	2025	2030
PEOPLE	Safety first Engagement & Retention	Towards zero accident at work leveraging on employees listening and experience	Accident Frequency Index1 Global Sustainable engagement Index	1.69 83%	1.41 83%	~1 ≥80% constantly	<1 ≥80% constantly
CLIMATE	NET ZERO @2040 (Scope 1+2+3, SBTi approved)	95.6% of electricity purchased from the grid is renewable Primary data available covering >90% of RM suppliers' total emissions	CO2 absolute emissions Scope 1+22 CO2 absolute emissions Scope 32	-45.0% vs 2018 -25.0% vs 2018	-57.1% vs 2018 -26.2% vs 2018	-60% vs 2018 -27% vs 2018	-80% vs 2018 CARBON NEUTRALITY -30% vs 2018	NET ZERO 2040 SBTi approved
PRODUCT	Efficiency & Safety Bio-based & Recycled	reducing rolling resistance, material innovation to increase never compromising on safety non-fossil origin: PZERO E6 , our lighthouse on the market: material innovation to increase non-fossil origin: PZERO E3 , our lighthouse on the market:	Volumes A+B (Rolling Resistance and Wet Grip) Best product available on the market3	29.8% 55.5%3	34.5% 58.5%3	35% >70%	>50% >80%
NATURE	Freshwater Biodiversity	reducing dependency and preserving water quality Biodiversity action Plan covering the five IPBES4 drivers	High water Specific water stress areas withdrawal All group sites % on all Pirelli Industrial sites & track test areas	-30.8% vs 2015 -45.3% vs 2015 -	-34.6% vs 2015 -51.4% vs 2015 55%	-36% vs 2015 100%	-45% vs 2015 -60% vs 2015 100%

* Full Pirelli sustainability plan and targets available on pirelli.com; Full Plan targets performances 2024 available in Pirelli Sustainability Statement (CSRD) 2024

PIRELLI 1Q 2025 RESULTS Wednesday, 14 May, 2025

1. Frequency Index(FI): ∑(Fatalities + Serious lost time injuries + Lost time injuries ) x 1,000,000/ worked hours If calculated based on 200,000 hours worked, Index 2024 is 0.28, ~ 0.2 @2025 and <0.2 @2030; 2. Science Based Targets initiative (SBTi) approved; 3. PZERO E measure 255/50R20 - IPcode 42871 - thanks to a combination of physical segregation and mass balance approach. Bio-based materials are natural rubber, textile reinforcements, bio-chemicals, bio-resins and lignin, while recycled materials are metallic reinforcements, chemicals and - through mass balance - synthetic rubber, silica and carbon black; 4. Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) – Five Drivers are: resources exploitation, pollution, invasive species, climate change, land/water/sea use change.

ESG Indices: a globally acknowledged sustainability leadership

Update @ 14/05/25

Major rankings	Last update	Score	Positioning in the reference sector Top score Auto Components and Automotive sector
Dow Jones Sustainability Index	2024	84
	2025	TOP 1% ESG	The only tyre maker in Top1%
	2025	A	A LIST – Max score
	2024	A	A LIST– Max score Supplier Engagement Leaders
	2024	B	Prime status - Top score Auto Components
	2024	AA	AA - ESG Leader Category
SUSTAINALYTICS	2025	8.2	Top score Tyre industry (Negligible risk); Awarded Industry ESG Top Rating
	2025	82	Platinum - Top 1%

Raw material costs trend and mix

Main raw materials price trend

Pirelli Q1 2025 mix based on purchasing cost

Pirelli manufacturing footprint

Disclaimer

In General. This disclaimer applies to this document and any oral comments of any person presenting it. This document, taken together with any such oral comments, is referred to herein as the "Presentation". This document has been prepared by Pirelli & C. S.p.A. ("Pirelli" or the "Company" and, together with its subsidiaries the "Group"). The Presentation is being furnished to you for information purposes only and for use in presentations of the results and strategies of the Group.

No distribution of this Presentation. This Presentation is being furnished to you solely for your information and may not be reproduced, in whole or in part, or redistributed to any other individual or legal entity.

Forward-looking statement. ""Forward-looking statements" (which expression shall include opinions, predictions or expectations about any future event) that may be contained in the Presentation are based on a variety of estimates and assumptions by the Group, including, among others, estimates of future operating results, the value of assets and market conditions. These estimates and assumptions are inherently uncertain and are subject to numerous potential risks that are outside of the Group's control. There can be no assurance that the assumptions made in connection with the forward-looking statements will prove accurate, and actual results may differ materially. The inclusion of the forwardlooking statements herein should not be regarded as an indication that the Group considers the forward-looking statements to be a reliable prediction of future events and the forward-looking statements should not be relied upon as such. Neither the Group nor any of its representatives has made or makes any representation to any person regarding the forward-looking statements and none of them intends to update or otherwise revise the forward-looking statements to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the forward-looking statements are later shown to be in error.

The forward-looking statements does not take into account any additional negative effects that may arise from impacts on the global market in which Pirelli operates and more generally on the macroeconomic scenario.

No update. The information and opinions in this Presentation is provided to you as of the dates indicated and the Group does not undertake to update the information contained in this Presentation and/or any opinions expressed relating thereto after its presentation, even in the event that the information becomes materially inaccurate, except as otherwise required by applicable laws.

Verbal explanation. This Presentation has to be accompanied by a verbal explanation. A simple reading of this Presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding.

No offer to purchase or sell securities. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.

Rounding. Due to rounding, numbers presented throughout this Presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Miscellanea. This Presentation has been prepared on a voluntary basis. Pirelli is therefore not bound to prepare similar presentations in the future, unless where provided by law.

Neither the Company nor any member of the Group nor any of its or their respective representatives, directors, employees or agents accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it.

Fabio Bocchio, the manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis,paragraph 2, of the Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records.

Non-IFRS and Other Performance Measures

This Presentation contains certain items as part of the financial disclosure which are not defined under IFRS. Accordingly, these items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other entities.

Pirelli management has identified a number of "Alternative Performance Indicators" ("APIs"). These APIs (i) are derived from historical results of Pirelli and are not intended to be indicative of future performance, (ii) are unaudited non-IFRS financial measures derived from the Financial Statements, and (iii) are not an alternative to financial measures prepared in accordance with IFRS.

The APIs presented herein are EBIT, EBIT margin, EBITDA, EBITDA margin, net income and net income margin.

In addition, this Presentation includes certain measures that have been adjusted by us to present operating and financial performance net of any non-recurring events and non-core events. The adjusted indicators are EBITDA adjusted, EBIT adjusted and net income adjusted. In order to facilitate the understanding of our financial position and financial performance, this Presentation contains other performance measures, such as Net Financial Position, Operating Cash Flow, Net Cash Flow before Dividends and extraordinary Operations, Net Cash Flow before Dividends, Net Cash Flow, CapEx (Capital Expenditure), Liquidity Margin and ROIC (Return On Invested Capital).

These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results.

These measures are used by our management to monitor the underlying performance of our business and operations. Similarly entitled non-IFRS financial measures reported by other companies may not be calculated in an identical manner, consequently our measures may not be consistent with similar measures used by other companies. Therefore, investors should not place undue reliance on this data.