Pirelli & C — Investor Presentation 2018

Feb 26, 2018

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 subsidiary 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.

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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 business, industry, market, regulatory, geo-political, competitive and financial 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 forward-looking 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.

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.

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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.

This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to Law 25/2016 in application of Directive 2013/50/EU. 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.

Francesco Tanzi, 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 & C. S.p.A. and are not intended to be indicative of future performance, (ii) are non-IFRS financial measures and, although derived from the Financial Statements, are unaudited 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, EBITDA adjusted without start up costs, EBIT, EBIT adjusted, EBIT adjusted without start up costs,, net income adjusted.

In order to facilitate the understanding of our financial position and financial performance, this Presentation contains other performance measures, such as Fixed Assets related to continuing operations, Provisions, Operating Working Capital related to continuing operations, Net Working Capital related to continuing operations, Net Financial (liquidity) / debt Position.

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.

KEY MESSAGES_

>

2017 RESULTS: SOUND HIGH VALUE STRATEGY DELIVERY

• ▬ Strengthened foothold in High Value (~58% on revenues, ~83% on adjusted EBIT before start-up costs)
• ▬ Top Price/Mix improvement in the industry: +6.9% in FY, +7.8% in 4Q
• ▬ Solid profitability increase driven by internal levers : EBIT margin reaching 17.3% in FY, 18.7% in 4Q

> 2018 EXPECTED PERFORMANCE: KEEPING THE PACE OF THE INDUSTRIAL PLAN

• ▬ High Value volumes: ≥+13% in 18'' and above
• ▬ Solid Price/Mix improvement driven by new products
• ▬ Efficiencies ~1% of sales

INDUSTRY FUTURE TRENDS: OUR STEPS AHEAD

• ▬ Electric car: partnership with Global Car Makers and most innovative Chinese brands
• ▬ Connected / autonomous: Cyber O.E. Products and solutions adoption currently under evaluation by some car makers; Connesso: market test finalized
• ▬ New mobility: expanding the Velo range, entering the Electric bicycle segment

PLAN DELIVERY IN 2017 AND 2018 OUTLOOK

SUSTAINABILITY PLAN UPDATE

REVIEW OF 2017 RESULTS

APPENDIX

2017 RESULTS HIGHLIGHTS_

million	2016A	2017E	2017A	∆ vs. guidance ~-0.7pp on FX
		target @ 6-Nov-18	YoY	~-0.8pp on faster Standard reduction
Revenues	4,976	~+9% YoY	5,352 +7.6% ~
HV Revenues	2,754		3,078 +11.8%
HV weight on tot. revenues	55%	>57%	57.5%
Adjusted EBIT w/o start-up1	844	~930	927 +9.7%
Margin	17.0%		17.3%
High Value weight	81%	~83%	~83%
Adjusted EBIT	844	~880	876 +3.8%
Net Income Consumer	164		263 +61%
Net Financial Position	4,961		3,219
NFP / adj.EBITDA w/o start-up costs	4.6X	<3X	2.7X
CapEx on Revenues	6.8%	~9%	9.1%

1 EBIT adjusted excluding PPA amortization, non recurring, one-off, extraordinary items and start-up costs;;

2017 PERFORMANCE BY HIGH VALUE REGION_

2017 PERFORMANCE BY STANDARD REGION_

PIRELLI, GLOBAL HIGH VALUE

FY 2017 RESULTS 26 February 2018 ⁶

PILLAR 1: HIGH VALUE 2017 ACHIEVEMENTS AND 2018 PRIORITIES_

PIRELLI, GLOBAL HIGH VALUE

1

PILLAR 2: TRANSFORMATION PROGRAMS 2017 ACHIEVEMENTS AND 2018 PRIORITIES

2017 achievements 2018 priorities

• Integrated O.E. / Repl. business mgmt. successfully redesigned, first pilots of predictive/forecasting tools showing encouraging results 1
• ~1% efficiencies reached in 2017 as planned, new centralized plant planning function working with new digital tools
• Specific Prestige Business Unit bearing first fruits: Global OE Market Share increased in 2017 up to almost half of the market 3

• New "customize to order" supply chain activated for Color Edition, Prestige supply chain reviewed 4

• ▬ Re-engineer and consolidate the Integrated Business Planning process, starting from Prestige

• ▬ ~1% efficiencies in continuity with plan
• ▬ Extend people training (tgt. 10 times the people involved in 2017)
• ▬ Capitalize high O.E. share in replacement market leveraging new digital approach to sales
• ▬ Increase Tier 1 agreements with additional key clients and gradually move towards a "make to order" model

1 Internet of Things

2

PIRELLI, GLOBAL HIGH VALUE

2

PILLAR 3: STANDARD CAPACITY REDUCTION, 2017 ACHIEVEMENTS AND 2018 PRIORITIES

STANDARD CAPACITY EVOLUTION 2016-2020 2017 ACHIEVEMENTS

Volumes Consistent with:

• ▬ Requests from O.E. Customers with Premium and Standard Range
• ▬ Retailers assortment
• ▬ Geographic car parc peculiarities (LatAm, Russia)

• ▬ Progressive upgrade of Jiaozuo (former Aeouls Car) into Pirelli brand production

• ▬ Mix improvement

• ▬ Phasing out of legacy brands in Russia (e.g. Amtel)
• ▬ Pruning of lower rim sizes in Europe and South America
• ▬ Limiting low value O.E. contracts
• ▬ Profitability improvement:
• ▬ Russia and CIS EBIT margin at «Low- teen» vs. «low single digit in 2016
• ▬ South America: high single digit profitability, improving YoY

2018 PRIORITES

LatAm:

• ▬ Cut standard production and conversion to High Value
• ▬ Focus on high mix, exploiting increasing SUV penetration (+15% SUV registration CAGR in 16-20)

MEAI

• ▬ Progressive reduction of Standard production
• ▬ Increasing weight of High Value sales (already >50% in 2017)

Russia:

• ▬ Focus on Pirelli mix to improve share in ≥17'' with an increasing weight of locally produced High Value tyre
• ▬ Strengthening price positioning

2018 HIGH VALUE MARKET OUTLOOK IN LINE WITH OUR PLAN_

FY 2018 OUTLOOK_

	2017A	2018E
million
Revenues	5,352	≥+6% YoY ~+10% Net of FX
High Value weight	58%	~60%
Adjusted EBIT w/o start-up1	927	>€ 1,0 bln
High Value weight	83%	≥83%
Start-up costs	50	~40
Adjusted EBIT2	876	~€1,0 bln
Net financial position / Adjusted EBITDA w/o start-up costs3	2.7X	~2.3X
CapEx on Revenues	9.1%	~8%
		~50% High Value capacity increase ▬ (Europe, NAFTA, APac and LatAm) ~25% mix & quality ▬ ~25% maintenance & other ▬

1 EBIT adjusted excluding PPA amortization, non recurring, one-off, extraordinary items and start-up costs; 2 EBIT adjusted excluding PPA amortization, non recurring, one-off and extraordinary items; 3 EBITDA adjusted excluding non recurring, one-off, extraordinary items and start-up costs

PLAN DELIVERY IN 2017 AND 2018 OUTLOOK

SUSTAINABILITY PLAN UPDATE

REVIEW OF 2017 RESULTS

APPENDIX

THE SUSTAINABILITY PLAN_

The Plan 2020 with selected 2025 target

• > Was drafted according to Pirelli Value Driver Model, with a Return on Capital approach
• > Integrates Group Industrial Plan and its High Value development strategy
• > Replaces previous Sustainability Plan 2013-2017 with selected targets 2020 (vs. 2009)
• > Maintains 2009 as base reference year to allow long-term numerical trends to be appreciated
• > Impacts on 12 of the Sustainable Development Goals 2030 set forth by the United Nations

FY 2017 RESULTS

SUSTAINABILITY PLAN UPDATE: ACHIEVEMENTS AND KEY TARGETS_

KPIs		'17 vs '09	'17 vs '16	Targets '20 vs '09		FURTHER 2017/18 ACHIEVEMENTS
	Green Performance Tyres revenues accounted for 42% of total tyre sales in 20171		+2%	>50% >65% on HV	>	Natural Rubber Policy»
	Accident frequency index reduction	-83%	-18%	-87%	>
	Plant CO specific emissions reduction 2	-9%	-4%	-17%		Model with ISO 204004
	Specific energy consumption reduction	-15%	-4%	-19%
	~43% of the electricity we buy comes from renewable sources2		+5%	
	93% of waste recovered in 2017	+24%	+1%	≥95%
	Specific water withdrawal reduction	-62%	-14%	-66%
	Avg. rolling resistance of Pirelli car tyres reduction	-15%		-20% -15% noise reduction		Awarded Global Sustainability
	Average training days per capita: ~8 in 2017		In line	≥7 days		2018 Sustainability Yearbook6
	83 ESG3 audits of Supplier Sustainability risk assessment		-16% Non conformities found on site	Non-tier 1 ESG risk governance

Awarded Global Sustainability Leader of Auto Components sector⁵

Awarded Gold Class Company in the 2018 Sustainability Yearbook⁶

1 Figure obtained by weighing the value of sales of Green Performance tyres on the total value of sales of Group tyres; Green Performance products identify tyres that Pirelli produces throughout the world and that fall only under rolling resistance and wet grip classes A, B, C according to the labeling parameters set by European legislation; 2 Internal evaluation on International Energy Agency (IEA) data considering Pirelli geographical breakdown; 3 Environmental, Social and Governance; 4 Confirmed by third party (Feb. 2018); 5 with a score of 83 points vs. sector average of 42 (Feb. 2018); 6 Edited by RobecoSAM, who is responsible for evaluations of inclusion in the Daw Jones Sustainability Index

PLAN DELIVERY IN 2017 AND 2018 OUTLOOK

SUSTAINABILITY PLAN UPDATE

REVIEW OF 2017 RESULTS

APPENDIX

FY 2017 RESULTS: HIGHLIGHTS_

€ million

NET INCOME CONSUMER NET FINANCIAL POSITION

1 before amortization of PPA, non-recurring items & restructuring costs; 2 Aeolus Car, Velo, Cyber & digital transformation ; 3 2016 ratio calculated using the NFP relative to the sole Consumer business

FY 2017 NET SALES BRIDGE_

FY / 4Q 2017 OPERATING PERFORMANCE_

FY 2017 NET INCOME BRIDGE_

1 U.S. private placement early redemption fees; 2 Wash down fee BBC financing

FY 2017 CASH FLOW AND NET FINANCIAL POSITION_

€ million

1 reported; 2 before non-recurring items and restructuring costs; 3 Industrial reorg: partial debt push down to Prometeon ; 4 Capital Increase made by Marco Polo; 5 2016 ratio calculated using the NFP relative to the sole Consumer business equal to €4,961 million

CURRENT CAPITAL STRUCTURE (DECEMBER 2017)_

€ million

NET FINANCIAL POSITION GROSS DEBT MATURITY 649 596 Net Fin. Position 3,219 Fin. Assets 153 1,151 Gross Debt 4,523 3,278 Loan Bond Other Cash & Cash equivalents Fin receivables & Other

LIQUIDITY PROFILE

Liquidity margin1	1,851
Total committed lines not drawn	700
Liquidity position	1,151

BREAK-DOWN BY CURRENCY

COST OF DEBT

1 covers ~ 2.4 years of forthcoming maturities

PLAN DELIVERY IN 2017 AND 2018 OUTLOOK

SUSTAINABILITY PLAN UPDATE

REVIEW OF 2017 RESULTS

APPENDIX

FY / 4Q 2017 RESULTS HIGHLIGHTS_

€ million

	FY '16 restated	FY '17	Δ YoY	4Q '16 restated	4Q '17	Δ YoY
Revenues	4,976.4	5,352.3	+7.6%	1,269.9	1,313.8	+3.5%
Organic Growth1			+7.9%			+8.3%
High Value Revenues	2,753.8	3,078.1	+11.8%	677.2	734.2	+8.4%
Organic Growth1			+13.4%			+12.7%
% on total Revenues	55.3%	57.5%	+3 p.p.	53.3%	55.9%	+3 p.p.
EBITDA adjusted w/o start-up costs2	1,082.3	1,175.1	+8.6%	280.9	309.4	+10.1%
Margin	21.7%	22.0%	+0.3 p.p	22.1%	23.6%	+1.5 p.p
EBITDA adjusted3	1,082.3	1,137.7	+5.1%	280.9	301.4	+7.3%
Margin	21.7%	21.3%	-0.4 p.p.	22.1%	22.9%	+0.8 p.p.
EBIT adjusted w/o start-up costs2	844.3	926.6	+9.7%	223.6	245.4	+9.7%
Margin	17.0%	17.3%	+0.3 p.p.	17.6%	18.7%	+1.1 p.p.
EBIT adjusted3	844.3	876.4	+3.8%	223.6	234.2	+4.7%
Margin	17.0%	16.4%	-0.6 p.p.	17.6%	17.8%	-0.2 p.p.
EBIT	686.5	673.6		172.8	132.5
Margin	13.8%	12.6%		13.6%	10.1%
Results from Equity Investments	(20.0)	(6.9)		32.7	11.7
Financial Income / (Charges)	(427.3)	(362.6)		(75.7)	(72.7)
EBT	239.2	304.1		129.8	71.5
Tax Rate	31.4%	13.4%		n.m.	9.9%
Net Income (Consumer)	164.0	263.3		128.2	64.4
Net Income adjusted (Consumer)	296.6	386.8		164.0	129.3

4Q Highlights

	Strong organic growth on the back of:
▬	Strengthening High Value
▬	Top Industry price/mix (+7.8%)
▬	Volumes +0.5%, with +11.5% on High Value and -5.8% on Standard, given the accelerated exit from low profitable products

▬	EBIT adj. improvement, with internal levers which more than compensated for rising raw mat. costs, inflation and other costs related to business development
▬	EBIT margin adj. w/o start-up at 18.7% (+1.1pp YoY)
▬	Lower financial charges related to reduced cost of debt

^▬ Tax rate positively impacted by detection of deferred tax assets and other temporary differences (e.g. ACE)

1 Excl. FX / perimeter; 2 Aeolus Car, Velo, Cyber & digital transformation; 3 before amortization of PPA, non-recurring items & restructuring costs;

2017 RESULTS HIGHLIGHTS BY QUARTER_

€ million

	1Q '16 restated	1Q '17	Δ YoY	2Q '16 restated	2Q '17	Δ YoY	3Q '16 restated	3Q '17	Δ YoY	4Q '16 restated	4Q '17	Δ YoY
Revenues	1,180.9	1,339.3	+13.4%	1,246.0	1,346.0	+8.0%	1,279.6	1,353.2	+5.8%	1,269.9	1,313.8	+3.5%
Organic Growth1			+8.4%			+6.2%			+8.3%			+8.3%
High Value Revenues	663.4	775.0	+16.8%	707.5	786.7	+11.2%	705.7	782.3	+10.8%	677.2	734.2	+8.4%
Organic Growth1			+16.0%			+11.2%			+13.9%			+12.7%
% on total Revenues	56%	58%	+2 p.p.	57%	58%	+1 p.p.	55%	58%	+3 p.p.	53%	56%	+3 p.p.
EBITDA adjusted w/o start-up costs2	261.5	281.7	+7.7%	268.4	285.1	+6.2%	271.5	298.9	+10.1%	280.9	309.4	+10.1%
margin	22.1%	21.0%	-1.1 p.p.	21.5%	21.2%	-0.3 p.p.	21.2%	22.1%	+0.9 p.p.	22.1%	23.6%	+1.5 p.p
EBITDA adjusted3	261.5	270.4	+3.4%	268.4	276.0	+6.2%	271.5	289.9	+6.8%	280.9	301.4	+7.3%
margin	22.1%	20.2%	-1.9 p.p.	21.5%	20.5%	-0.1 p.p.	21.2%	21.4%	+0.2 p.p.	22.1%	22.9%	+0.8 p.p.
EBIT adjusted w/o start-up costs2	203.6	219.5	+7.8%	209.6	233.5	+11.4%	207.5	238.2	+14.8%	223.6	245.4	+9.7%
margin	17.2%	16.4%	-0.8 p.p.	16.8%	16.6%	+0.8 p.p.	16.2%	17.6%	+1.4 p.p.	17.6%	18.7%	+1.1 p.p.
EBIT adjusted3	203.6	205.0	+0.7%	209.6	211.2	+0.8%	207.5	226.0	+8.9%	223.6	234.2	+4.7%
Margin	17.2%	15.3%	-1.9 p.p.	16.8%	15.7%	-0.1 p.p.	16.2%	16.7%	+0.5 p.p.	17.6%	17.8%	+0.2 p.p.
PPA amortization	(26.2)	(26.2)		(26.1)	(26.1)		(26.1)	(28.6)		(26.2)	(28.7)
non recurring & restructuring costs	(11.3)	(10.1)		(8.1)	(35.6)		(9.2)	25.5		(24.6)	(73.0)
EBIT	166.1	168.7	+1.6%	175.4	149.5	-14.8%	172.2	222.9	+29.4%	172.8	132.5	-23.3%
margin	14.1%	12.6%	-1.5 p.p.	14.1%	11.1%	-3.0 p.p.	13.5%	16.5%	+3.0 p.p.	13.6%	10.1%	-3.5 p.p.

1 Excl. FX / perimeter; 2 Aeolus Car, Velo, Cyber & digital transformation; 3 before amortization of PPA, non-recurring items & restructuring costs;

FY PIRELLI BALANCE SHEET_

€ million

	31/12/2016 Carve-out	31/12/2016 Reported	31/12/2017
Fixed assets related to continuing operations	9,168	10,299	9,121
Inventories	874	1,056	941
Trade receivables	680	679	653
Trade payables	(1,281)	(1,499)	(1,674)
Operating net working capital related to continuing operations	274	236	(80)
Other receivables / payables	19	(311)	(42)
Net Working Capital related to continuing operations	293	(74)	(123)
Net invested capital held for sale	-	-	61
Total net invested capital	9,460	10,225	9,059
Equity	2,633	3,275	4,177
Provisions	1,866	2,037	1,664
Net Financial Position	4,961	4,913	3,219
Total financing and shareholders' equity	9,460	10,225	9,059

FY PIRELLI GROUP CASH FLOW_

		FY '16 restated	FY '17
€ million
	EBIT adjusted1	844	876
	Depreciation & Amortization (excl. PPA amortization)	238	261
	Capital expenditures	(342)	(489)
	Change in working capital / other	32	124
	Operating Cash Flow	772	772
	Financial income / (expenses)	(427)	(363)
	Taxes paid	(104)	(136)
	Financial investments	(7)	(3)
	Financial asset disposals	109	26
	Asset disposals	91	-
	Dividends paid to minorities	-	(13)
	Cash-out for non recurring items and restructuring costs	(49)	(64)
	Bidco financial costs after merger / other refinancing adjust. already incl. in fin. charges	23	-
	Minorities	-	(6)
	Financial expenses already included in acquisition debt	122	-
	Partial purchase from Dasa of Pneuac shares	-	(15)
	Exchange rates difference/other	(193)	1
	Net cash flow before extraordinary operations	336	200
	Industrial reorganization	47	305
	Capital increase	-	1,189
	Impact on NFP Aeolus Car	(74)	-
	Cinda cash-in from 38% of P.I. sale	266	-
	Bidco NFP variation 1.1 – 31.05.2016	(134)	-
	Bidco financial costs after merger/other refinancing adjustments	(23)	-
	Net cash flow	418	1,694

1 before amortization of PPA, non recurring items and restructuring costs

2018E FOREX GUIDANCE

€ million

PIRELLI, GLOBAL HIGH VALUE

FY 2017 RESULTS

2018E RAW MATERIAL GUIDANCE

breakdown FY 2017 A based on purch. costs 15% Natural Rubber 29% Synthetic Rubber 9% Carbon Black 15% Steel Reinf. 16% Textiles 21% Chemicals AVERAGE COST OF COMMODITIES Natural Rubber TSR20 (\$ / tonne) Brent Oil (\$ / barrel) Butadiene EU (€ / tonne) 2017 A 1,651 54.9 1,112 2018 E ~1.800 ~68 ~1,200 ∆ YoY +8% +23% +7% raw mat. 35% on Sales Raw Mat. subtotal ~-55 FX impact ~-40 TOT. IMPACT ~-95 2018E EBIT impact ~+15 ~-80 ~+10 € million 2018E IPO plan ~1,800 ~61 ~2,200 ~76% of production in lowcost countries

ATTRACTIVE TYRE MARKET: ≥18" OUTGROWING STANDARD ~4x SUSTAINED BY PREMIUM & PRESTIGE CAR PARC EXPANSION_

Source: Company elaborations based on third party data relative to car market and on data provided by local associations of tyre producers

KEY CAR MARKET TRENDS: EUROPE¹_

Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement

PIRELLI, GLOBAL HIGH VALUE

FY 2017 RESULTS

KEY CAR MARKET TRENDS: NAFTA_

Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement; 1 NAFTA Replacement includes imports

KEY CAR MARKET TRENDS: APAC_

Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement

KEY MARKET TRENDS: RUSSIA & CIS AND SOUTH AMERICA_

Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement; 1 South America Replacement restated to include Brazilian imports

RAW MATERIAL COSTS TREND AND MIX_

MAIN RAW MATERIALS PRICE TREND

FY 2017 MIX (BASED ON PURCHASING COST)

PIRELLI MANUFACTURING FOOTPRINT AS OF DECEMBER 31ST 2017