Pirelli & C — Investor Presentation 2015

Nov 11, 2015

PIRELLI 9M 2015 RESULTS

MILANO – NOVEMBER 11, 2015

KEY MESSAGES

9M Financial results and updated 2015 Guidance

• > Sound results despite ~1/3 of our business being in countries (e.g. South America and Russia) where the external scenario suddenly deteriorated in mid-August; FX volatility increased, demand fell sharply in the OE Channel (both Car and Truck) and in the Industrial Business.
• > In this scenario, we achieved industry-leading organic growth and sound profitability, boosted by Premium outperformance across markets, top price/mix improvement and progress on the efficiency plan. Strong performance in Consumer business offset weakness in Industrial.
• 2015 guidance update: cash flow and NFP target confirmed. Our internal value drivers (efficiency and price/mix) and a prompt recovery plan will mitigate the impact of the external scenario on profitability. >

Next chapter of our equity story

• > Completion of Public Tender Offer is a testimony to the positive response by Financial Markets to ChemChina-Pirelli industrial partnership
• Partnership will strengthen Pirelli's presence in a strategic geographic area characterized by strong growth as well as give birth to a global leader in the Industrial tyre segment >
• Re-listing expected by at least the fourth year following the transaction >

Pirelli Management wish to thank investors and analysts who took part in the Company's value creation journey, and is looking forward to a prompt return to equity market with a new growth story

AGENDA

PIRELLI KEY FINANCIAL RESULTS

€/Mln	9M 14	9M 15	Δ yoy	3Q 14	3Q 15	Δ yoy	Q3 Highlights
Revenues	4,528.7	4,711.9	+4.0%	1,541.8	1,533.4	-0.5%	• Sound organic growth despite South
Organic Growth*			+3.3%			+3.7%	American and Russian market deterioration
EBITDA before Restr. Costs	867.7	893.4	+3.0%	284.9	283.8	-0.4%	• Increasing Premium weight at 62%
Margin	19.2%	19.0%	-0.2 p.p.	18.5%	18.5%	0.0 p.p.	(+6 p.p. yoy)
EBIT before Restr. Costs	647.8	657.2	+1.5%	208.9	205.8	-1.5%	• Profitability performance sustained by
Margin	14.3%	13.9%	-0.4 p.p.	13.5%	13.4%	-0.1 p.p.	strong price/mix, best quarterly result ytd
Restructuring Costs	(18.1)	(9.1)		(5.4)	(4.3)
EBIT	629.7	648.1	+2.9%	203.5	201.5	-1.0%	• Stable margin overall: profitability growth in the Consumer business
Margin	13.9%	13.8%	-0.1 p.p.	13.2%	13.1%	-0.1 p.p.	compensating Industrial weakness
Results from Equity Investments	(32.3)	(6.2)		(5.1)	(2.2)
Financial Income / (Charges)	(135.7)	(180.5)		(43.6)	(67.1)		• Financial charges negatively
PBT	461.7	461.4	-0.1%	154.8	132.2	-14.6%	impacted by the effect of Bolivar devaluation on trade receivables
Tax Rate	-35.6%	-36.9%		-32.0%	-39.6%		(23€/mln in 9M) and interest rate increase in Russia
Net Income before discontinued operations	297.4	291.2		105.3	79.8		• Higher tax rate in 3Q '15 reflects the impact of the Bolivar devaluation
Discontinued operations	2.6	(14.6)		0.9	0.3
Net Income	300.0	276.6		106.2	80.1
Attributable Net Income	290.5	269.0		101.4	78.2
Investments**	244.7	261.8		101.1	73.0		• Net Debt trend in line with seasonality
Net Debt	2,003.9	1,685.5		2,003.9	1,685.5		of the net working capital, to be reversed in the last quarter

* Excluding exchange rate effects

** Tangible and Intangible investments

9M 2015 PERFORMANCE BY REGION

* Excluding exchange rate effects

PREMIUM PERFORMANCE BY REGION

* Excluding exchange rate effects

PIRELLI NET INCOME 9M 2015 VS 9M 2014

€/Mln

PIRELLI DEBT STRUCTURE AS OF SEPTEMBER 30, 2015

Gross Debt Maturity

Liquidity Profile

Liquidity Margin	1,722.8
Total committed lines not drawn due 2020	826.2
Liquidity position	896.6
€/Mln

Debt Profile

• ~ 50% of the debt maturity beyond 2016
• Cost of debt 6.04% as of September 30th, 2015
• Gross debt profile ~ 75% Fixed and ~ 25% Floating
• Average debt maturity: ~ 2.1 years

PIRELLI 9M 2015 NET FINANCIAL POSITION

€/Mln

AGENDA

9M 2015 RESULTS

2015 OUTLOOK & TARGETS

9M 15 TYRE OVERVIEW

APPENDIX

2015 MACROECONOMIC SCENARIO WHAT HAS CHANGED vs 1H 2015: BRAZIL AND RUSSIA IN DEEPER RECESSION

• Brazil: deterioration of macroeconomic scenario in mid-August (2Q GDP -2.6% vs. -1.6% in 1Q, inflation above 9%) led S&P to downgrade government debt to "junk" status which weakened currency (BRL devaluation vs. USD -36% in 3Q, -28% in 9M). Prospects continue to be weak in 2016. >
• Russia: deeper recession (2Q GDP -4.6% vs. -2.2 in 1Q) driven by weaker domestic demand, low oil prices, and sanctions. Renewed burst of inflation exacerbated by depreciation of the Ruble (-43% vs. USD in 3Q, 41% in 9M). Recovery expected in early 2017. >

* Old: July 2015 estimates; New: Oct. 2015 estimates. Source: Global Insight

CAR TYRE MARKET:

WEAKER EMERGING MARKET TREND vs. 1H 2015 EXPECTATIONS

* Old: July 2015 estimates; New: Oct. 2015 estimates. Source: Pirelli estimates on local pools

TRUCK TYRE* MARKET: WORSENING LATAM DEMAND AND CHINA SLOWDOWN

9M 2015 RESULTS 12

2015 REGIONAL TARGETS UPDATE: NAFTA AND EUROPE MITIGATE THE SLOWDOWN IN LATAM AND RUSSIA

	Tyre Market ( yoy)		2015 Pirelli Tyre Business Target				Highlights
			Revenues		EBIT Margin**
A T F A N		Car ~ +2% o/w Premium ~ +6% Truck* ~ +6%	Mid single-digit organic growth (>20% in €)		Low twenties increasing YOY	=	• Supportive ForEx, mix improvement and favourable impact from Mexico and LatAm production sources
E P O R U E		= Car ~ +2% o/w Premium ~ +12% Truck* ~ +7%	Mid single-digit organic growth		Mid teens stable YOY	=	• Strategy confirmed: Premium leadership consolidating fully benefitting on OE pull through, new product launch and selected retail approach
AI E M		Car ~ +7% o/w Premium ~+10% = Truck* > +2%	High single-digit organic growth (mid-teens in €)	=	High teens stable YOY	=	• Outgrowing Premium segment in key countries
c a P A		Car ~ +2% = o/w Premium > +10% Truck* >-4%	Low-teen organic growth (>20% in €)		Twenties increasing YOY	=	• Strategy confirmed: outperforming Premium market leveraging on OE pull-through and retail development
M A T A L		= Car OE ~ -18% Repl. ~+2% o/w Premium ~ +10% Truck* OE -47% Repl. -9%	Low single-digit organic growth (high single-digit decline in €)	=	Double-digit declining YOY		• Recovery plan already in action: further price increases, cost cutting and efficiency enhancement, export increase towards Nord America
A SI S U R		Car ~ -23% = o/w Premium ~ -15% Truck* -16%	Mid single-digit organic growth (high-teen decline in €)		Low single-digit declining YOY		• Coping with market contraction by focusing on efficiencies and higher exports in Europe
	TOTAL	= Car ~ +1% = o/w Premium +7% Truck* ~ -2%					=  vs previous guidance
							* All steel only ** Before Restructuring Costs

9M 2015 RESULTS 13

FY 2015 GUIDANCE

	2015 targets August 2015	2015 targets November 2015	Main changes vs. previous Guidance
Revenues	> 6.35 € bln	> 6.25 € bln
• Volumes	+0.5% ÷ +1%	-0.5% ÷ -1%	• Volumes: -1/-2 p.p. in growth due to market drop in Brazil
- o/w Premium	≥ +10%	confirmed	(in deeper recession since mid-August 2015) and Russia
• Price/mix	~+4%	≥+5.5%	• Price/Mix: Stronger action on product and channel mix
• Foreign Exchange	~+1%	~ -1.5%	• FX: EUR/ EUR/ USD/ USD/ USD/
Total Revenues Growth	~ +6%	~+4%	USD RUB BRL VEF ARS
			Aug '15 1.10 65.0 3.0 20.0 11.5 9.5 Nov '15 1.12 68.0 3.4 confirmed
EBIT before non recurring items and restructuring costs Non recurring items and restructuring costs	~ 960 €/mln ~ 30 €/mln	~ 925 €/mln ~ 55 €/mln	Stronger Price/Mix (+45 €/mln) and higher efficiencies (+10 €/mln) partially offsetting the worsening external scenario (-22 €/mln volumes drop, -68 €/mln FX) Additional 25 €/mln of non recurring items related to further
EBIT	~ 930 €/mln	~ 870 €/mln	restructurings in LatAm and additional Industrial BU separation costs
Capex	<400 €/mln	confirmed
Net Cash Flow before Dividends and Steelcord disposal	≥ 300 €/mln	confirmed
Net Financial Position	~850 €/mln	confirmed

FY'15 EBIT (Before non recurring items & restructuring costs): NEW vs. OLD

Stronger push on Price/Mix and higher efficiencies to fully offset the drop in volumes and mitigate the stronger than expected volatility in FX rates

2015 CONSUMER & INDUSTRIAL GUIDANCE

	Industrial Business
		2015 targets August 2015	2015 Targets November 2015
confirmed	Revenues	~1.35 € bln	~1.25 € bln
~+1%	• Volumes	~ -3%	~ -6%
confirmed
> +6.5%	• Price/mix	~ +1%	> +2%
flat	• Forex	~ -2%	~ -7%
>+8%	Total	~ -4%	~ -11%
~ 16%	EBIT margin before non-recurring items and restr. costs	~ 10%	≥ 8%

2015 PROFITABILITY GUIDANCE

Driver	2015 targets	2015 targets	 vs. previous guidance
	Aug 2015	Nov 2015	on revenues	on Ebit
Volumes	+0.5% ÷ +1% of sales	-0.5% ÷ -1% of sales	-80 € /mln	-22 € mln (lower volumes with below-average profitability)
Price/Mix	~ +4% of sales	≥+5.5% of sales	+110 €/mln	+45 €/mln (mainly higher channel and regional mix)
Forex	~+1% of sales	~-1,5% of sales	-130 €/mln	-38€/mln
Efficiencies	~ +90 €/mln	~+100 €/mln		+10 €/mln due to acceleration actions in LatAm
Raw Materials	+40 €/mln	+10 €/mln		-30 €/mln (100% FX impact)
Other Input Costs	~ -145 €/mln	confirmed
D&A	-30 €/mln	confirmed
Other Costs	-60€/mln	confirmed
Minor businesses	ΔYoY slightly positive (FY15E EBIT: ~-10 €/mln )	confirmed
EBIT before non rec. items & restr. costs	960 €/mln	925 €/mln		-35 € mln
Non recurring & restr. costs	-30 €/mln	-55€/mln		-25 €/mln due to additional costs for BU Industrial separation and restructuring costs
EBIT	930 €/mln	870 €/mln

2015 RAW MATERIAL GUIDANCE

Raw Material Breakdown 9M 2015

AGENDA

9M 2015 RESULTS

2015 OUTLOOK & TARGETS

9M 15 TYRE OVERVIEW

APPENDIX

KEY TYRE RESULTS

€/Mln

	1Q'15	∆ %	2Q'15	∆ %	3Q'15	∆ %	9M'15	∆ %
Revenues	1,565.3	+6.5%	1,608.4	+6.4%	1,531.3	-0.5%	4,705.0	+4.1%
o/w Premium	726.9	+13.6%	770.5	+19.4%	765.1	+17.9%	2,262.5	+17.0%
EBITDA before restr. costs	293.5	+4.7%	319.1	+3.4%	285.4	-0.6%	898.0	+2.5%
Margin	18.8%	-0.3 p.p.	19.8%	-0.6 p.p.	18.6%	-0.1 p.p.	19.1%	-0.3 p.p.
EBIT before restr. costs	215.3	+2.4%	239.7	+1.5%	207.8	-1.8%	662.8	+0.7%
Margin	13.8%	-0.5 p.p.	14.9%	-0.7 p.p.	13.6%	-0.2 p.p.	14.1%	-0.5 p.p.
EBIT	213.3	+4.1%	238.2	+4.0%	204.0	-1.1%	655.5	+2.4%
Margin	13.6%	-0.3 p.p.	14.8%	-0.4 p.p.	13.3%	-0.1 p.p.	13.9%	-0.3 p.p.

Revenue drivers	1Q'15	2Q'15	3Q'15	9M'15
∆ Price/Mix	+3.7%	+3.4%	+7.0%	+4.8%
∆ Volumes	-1.3%	+0.6%	-3.3%	-1.4%
o/w Premium	+10.0%	+11.0%	+12.2%	+11.0%
∆ Revenues (before exchange rate impact)	+2.4%	+4.0%	+3.7%	+3.4%
∆ Exchange Rate	+4.1%	+2.4%	-4.2%	+0.7%

PIRELLI TYRE OPERATING PERFORMANCE

9M 2015 RESULTS 21

CONSUMER BUSINESS: PIRELLI PERFORMANCE

€/Mln

	1Q'15	∆ %	2Q'15	∆ %	3Q'15	∆ %	9M'15	∆ %
Revenues	1,237.4	+9.6%	1,284.3	+10.8%	1,239.9	+5.3%	3,761.6	+8.5%
o/w Premium	726.9	+13.6%	770.5	+19.4%	765.1	+17.9%	2,262.5	+17.0%
% revenues	58.7%	+2.0 p.p.	60.0%	+4.4 p.p.	61.7%	+6.6 p.p.	60.1%	+4.3 p.p.
EBITDA before restr. costs	246.3	+12.3%	276.8	+12.9%	255.9	+12.2%	779.0	+12.5%
Margin	19.9%	+0.5 p.p.	21.6%	+0.5 p.p.	20.6%	+1.2 p.p.	20.7%	+0.7 p.p.
EBIT before restr. costs	182.0	+11.9%	210.0	+12.4%	190.4	+13.8%	582.4	+12.7%
Margin	14.7%	+0.3 p.p.	16.4%	+0.3 p.p.	15.4%	+1.2 p.p.	15.5%	+0.6 p.p.
EBIT	180.4	+13.6%	208.5	+15.0%	187.2	+14.0%	576.1	+14.2%
Margin	14.6%	+0.5 p.p.	16.2%	+0.6 p.p.	15.1%	+1.2 p.p.	15.3%	+0.8 p.p.

Revenue drivers	1Q'15	2Q'15	3Q'15	9M'15
∆ Price/Mix	+4.7%	+4.1%	+7.8%	+5.5%
∆ Volumes	+0.4%	+2,2%	-1.4%	+0.4%
o/w Premium	+10.0%	+11.0%	+12.2%	+11.0%
∆ Revenues (before exchange rate impact)	+5.1%	+6.3%	+6.4%	+5.9%
∆ Exchange Rate	+4.5%	+4.5%	-1.1%	+2.6%

INDUSTRIAL BUSINESS: PIRELLI PERFORMANCE

€/Mln

	1Q'15	∆ %	2Q'15	∆ %	3Q'15	∆ %	9M'15	∆ %
Revenues	327.9	-3.8%	324.1	-7.8%	291.4	-19.3%	943.4	-10.5%
EBITDA before restr. costs	47.2	-22.5%	42.3	-33.5%	29.5	-50.2%	119.0	-35.2%
Margin	14.4%	-3.5 p.p.	13.1%	-5.0 p.p.	10.1%	-6.3 p.p.	12.6%	-4.8 p.p.
EBIT before restr. costs	33.3	-30.0%	29.7	-39.8%	17.4	-60.8%	80.4	-43.1%
Margin	10.2%	-3.8 p.p.	9.2%	-4.8 p.p.	6.0%	-6.3 p.p.	8.5%	-4.9 p.p.
EBIT	32.9	-28.6%	29.7	-37.9%	16.8	-60.1%	79.4	-41.6%
Margin	10.0%	-3.5 p.p.	9.2%	-4.4 p.p.	5.8%	-5.9 p.p.	8.4%	-4.5 p.p.

-3.0 p.p. vs. 9M 2014 excl. Steelcord business

Revenue drivers	1Q'15	2Q'15	3Q'15	9M'15
∆ Price/Mix	-0.1%	+1.3%	+4.8%	+2.0%
∆ Volumes	-6.7%	-4.7%	-9.7%	-7.1%
∆ Revenues (before exchange rate impact)	-6.8%	-3.4%	-4.9%	-5.1%
∆ Exchange Rate	+3.0%	-4.4%	-14.4%	-5.4%

AGENDA

2015 OUTLOOK & TARGETS

9M 15 TYRE OVERVIEW

APPENDIX

PIRELLI GROUP – 3Q 2015 RESULTS

Profit & Loss Statement and Net Financial Position by Business Unit

	Pirelli tyre		Other		Pirelli	& C. Cons.
€/Mln	3Q'14	3Q'15	3Q'14	3Q'15	3Q'14	3Q'15
SALES	1,539.2	1,531.3	2.6	2.1	1,541.8	1,533.4
EBITDA before Restr. Costs	287.2	285.4	(2.3)	(1.6)	284.9	283.8
% of sales	18.7%	18.6%			18.5%	18.5%
EBIT before Restr. Costs	211.7	207.8	(2.8)	(2.0)	208.9	205.8
% of sales	13.8%	13.6%			13.5%	13.4%
Restructuring Costs	(5.4)	(3.8)	0.0	(0.5)	(5.4)	(4.3)
EBIT	206.3	204.0	(2.8)	(2.5)	203.5	201.5
% of sales	13.4%	13.3%			13.2%	13.1%
Results from equity participations					(5.1)	(2.2)
Financial income/charges					(43.6)	(67.1)
EBT					154.8	132.2
Fiscal Charges					(49.5)	(52.4)
Net Income before discontinued operations					105.3	79.8
Discontinued operations					0.9	0.3
Net Income					106.2	80.1
Attributable Net Income					101.4	78.2
Net Financial Position					2,003.9	1,685.5

PIRELLI GROUP – 9M 2015 RESULTS

Profit & Loss Statement and Net Financial Position by Business Unit

	Pirelli tyre		Other		Pirelli	& C. Cons.
€/Mln	9M'14	9M'15	9M'14	9M'15	9M'14	9M'15
SALES	4,520.0	4,705.0	8.7	6.9	4,528.7	4,711.9
EBITDA before Restr. Costs	876.2	898.0	(8.5)	(4.6)	867.7	893.4
% of sales	19.4%	19.1%			19.2%	19.0%
EBIT before Restr. Costs	658.1	662.8	(10.3)	(5.6)	647.8	657.2
% of sales	14.6%	14.1%			14.3%	13.9%
Restructuring Costs	(17.8)	(7.3)	(0.3)	(1.8)	(18.1)	(9.1)
EBIT	640.3	655.5	(10.6)	(7.4)	629.7	648.1
% of sales	14.2%	13.9%			13.9%	13.8%
Results from equity participations					(32.3)	(6.2)
Financial income/charges					(135.7)	(180.5)
EBT					461.7	461.4
Fiscal Charges					(164.3)	(170.2)
Net income before discontinued operations					297.4	291.2
Discontinued operations					2.6	(14.6)
Net Income					300.0	276.6
Attributable Net Income					290.5	269.0
Net Financial Position					2,003.9	1,685.5

PIRELLI GROUP – 2014 QUARTERLY RESULTS

		Q1'14		Q2'14 Q3'14		Q4'14		FY'14
€/Mln	Tyre	Group	Tyre	Group	Tyre	Group	Tyre	Group	Tyre	Group
SALES	1,469.5	1,473.2	1,511.3	1,513.7	1,539.2	1,541.8	1,487.5	1,489.4	6,007.5	6,018.1
EBITDA before Restr. Costs	280.3	277.3	308.7	305.5	287.2	284.9	300.7	300.3	1,176.9	1,168.0
% of sales	19.1%	18.8%	20.4%	20.2%	18.7%	18.5%	20.2%	20.2%	19.6%	19.4%
EBIT before Restr. Costs	210.3	206.7	236.1	232.2	211.7	208.9	222.3	221.4	880.4	869.2
% of sales	14.3%	14.0%	15.6%	15.3%	13.8%	13.5%	14.9%	14.9%	14.7%	14.4%
Restructuring Costs	(5.4)	(5.7)	(7.0)	(7.0)	(5.4)	(5.4)	(10.0)	(13.2)	(27.8)	(31.3)
EBIT	204.9	201.0	229.1	225.2	206.3	203.5	212.3	208.2	852.6	837.9
% of sales	13.9%	13.6%	15.2%	14.9%	13.4%	13.2%	14.3%	14.0%	14.2%	13.9%
Results from equity participations		(13.8)		(13.4)		(5.1)		(54.7)		(87.0)
Financial Income / (Charges)		(43.3)		(48.8)		(43.6)		(126.7)		(262.4)
EBT		143.9		163.0		154.8		26.8		488.5
Fiscal Charges		(53.5)		(61.3)		(49.5)		(9.0)		(173.3)
Net Income before discontinued operations		90.4		101.7		105.3		47.8		350.4
Discontinued Operations		1.1		0.6		0.9		15.0		17.6
Net Income		91.5		102.3		106.2		32.8		332.8
Attributable Net Income		89.7		99.4		101.4		28.8		319.3
Net Financial Position		1,965.6		1,935.2		2,003.9		979.6		979.6

PIRELLI GROUP CASH FLOW

€/Mln	3Q'14	9M'14	1Q'15	2Q'15	1H'15	3Q'15	9M'15
EBIT before restructuring costs	208.9	647.8	213.4	238.0	451.4	205.8	657.2
Depreciation / Amortisation	76.0	219.9	78.5	79.7	158.2	78.0	236.2
Net investments	(101.1)	(244.7)	(85.6)	(103.2)	(188.8)	(73.0)	(261.8)
Working capital / other variations	(155.0)	(764.2)	(895.2)	151.6	(743.6)	(113.7)	(857.3)
OPERATING CASH FLOW	28.8	(141.2)	(688.9)	366.1	(322.8)	97.1	(225.7)
Financial income / (expenses)	(43.6)	(135.7)	(52.1)	(61.3)	(113.4)	(67.1)	(180.5)
Taxes	(49.5)	(164.3)	(54.2)	(63.7)	(117.8)	(52.4)	(170.2)
NET OPERATING CASH FLOW	64.3	(441.2)	(795.1)	241.1	(554.0)	(22.4)	(576.4)
Financial investments/divestments	(12.1)	(13.0)	(14.4)	(0.4)	(14.8)	-	(14.8)
Other dividends paid	-	(3.4)	(7.6)	(2.5)	(10.1)	-	(10.1)
Cash-out for restructuring	(8.0)	(26.8)	(6.4)	(2.6)	(9.0)	(3.7)	(12.7)
Deval. Venezuela incl. in financial charges	-	-	-	14.2	14.2	9.1	23.3
Net cash flow from discontinued operations	2.5	4.3	-	-	-	-	-
Call option exercise on Fenice	-	-	-	-	-	(12.2)	(12.2)
Exchange rate differentials / others	13.2	(44.7)	45.8	(37.4)	8.4	22.5	30.9
NET CASH FLOW BEFORE DIVIDENDS & STEELCORD	(68.7)	(524.8)	(777.7)	212.4	(565.3)	(6.7)	(572.0)
Dividends paid	-	(156.7)	-	(179.5)	(179.5)	-	(179.5)
Impact on NFP of Steelcord units disposal	-	-	24.4	35.6	60.0	(14.4)	45.6
NET CASH FLOW	(68.7)	(681.5)	(753.3)	68.5	(684.8)	(21.1)	(705.9)

PIRELLI BALANCE SHEET

€/Mln	FY'14	9M'15
FIXED ASSETS	3,874.0	3,825.5
Inventories	1,055.0	1,062.2
Trade receivables	673.8	1,035.0
Trade payables	(1,394.4)	(1,040.4)
NET OPERATING WORKING CAPITAL	334.4	1,056.8
Other payables/receivables	33.9	102.5
Net Working Capital	368.3	1,159.3
Net Invested Capital held for sale	30.8	-
NET INVESTED CAPITAL	4,273.1	4,984.8
Total Net Equity	2,611.5	2,665.3
Provisions	682.0	634.0
Net Financial Position	979.6	1,685.5
TOTAL	4,273.1	4,984.8
Attributable Net Equity	2,548.3	2,603.7
Equity per Share (euro)	5.22	5.34

CONSUMER BUSINESS: KEY MARKET TRENDS

9M 2015 RESULTS 30

INDUSTRIAL BUSINESS: KEY MARKET TRENDS

9M 2015 PIRELLI TYRE MIX

SEPTEMBER 2015 PIRELLI PEOPLE

PIRELLI PLANTS IN THE WORLD

RAW MATERIALS

Raw Material Price Trend

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

9M 2015 Mix (Based on Purchasing Cost)

9M 2015 RESULTS 35

DISCLAIMER

This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA's current expectations and projections about future events and does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of the financial community.

These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activities and situation relating to the Company.

Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those expressed in or implied by these forward looking statements as a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely. Consequently it is recommended that they be viewed as indicative only.

Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation.

Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of unanticipated events.

Statement

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The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests – as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) – that all the accounting information contained in this presentation correspond to the documented results, books and accounting of the Company.