1Q 2020 RESULTS

Milan, May 13th, 2020

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.

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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.

The data contained in this presentation are preliminary in nature and refer to the date hereof and, therefore, may be subject to further variations. Please note that these preliminary data are subject to review by the independent auditors that still have to complete their necessary analysis in order to release their report. The 2019 final results will be approved by the Board of Directors scheduled on the 2 nd of March 2020 and will be disclosed to the market according to, and in the terms set for by, the applicable laws and regulations.

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 include EBIT, EBIT margin, EBITDA, EBITDA 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 margin adjusted, EBITDA adjusted without start-up costs, EBITDA margin adjusted without start-up costs, EBIT adjusted, EBIT margin adjusted, EBIT adjusted without start-up costs, EBIT margin adjusted without start-up costs.

In order to facilitate the understanding of our financial position and financial performance, this Presentation contains other performance measures, such as CapEx (Capital Expenditures) or Investments in property, plant & equipment, Operating working capital related to continuing operations, Net Financial (liquidity) / debt Position, Net financial (liquidity)/debt position without IFRS 16, Operating net cash flow, Net cash flow and Net cash flow before dividends.

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

April 3 rd 2020 Outlook confirmed

global car tyre demand down 20% YoY
High Value resilience vs. Standard
Pirelli volume trend (-19% on total car, -12.5% on ≥18")

Fully on track on "Competitiveness Program". A second program launched to offset Covid impact and protect profitability.

> Working on transforming Pirelli into a leaner and faster player ready for the new post-crisis scenario in late 2020

2020 OUTLOOK

MARKET AND PIRELLI PERFORMANCE

1Q 2020 FINANCIAL REVIEW

APPENDIX

APRIL 3RD 2020 OUTLOOK CONFIRMED: WEAK CAR TYRE DEMAND, H.V. RESILIENCE, PIRELLI VOLUMES TREND

1Q 2020 RESULTS Milan, May 13th, 2020 4

PIRELLI COMPETITIVENESS PROGRAM COUPLED WITH «COVID ACTIONS» TO PROTECT MARGIN, ALREADY DELIVERYING IN 1Q 2020

1Q 2020 RESULTS

Milan, May 13th, 2020 5

TRANSFORMING PIRELLI INTO A LEANER AND FASTER PLAYER

Markets will take 2 years to go back to 2019 level. We are therefore working to transform Pirelli.

A LEANER COMPANY THROUGH:

Product Range Streamlining
Organization Simplification
Digitalization of Processes
Adoption of new working methods

A FASTER COMPANY THROUGH:

Direct Connection to Consumers and Customers
Advanced Collaborative forecasting
Enhanced Simulation application to New Product Introduction
Reduction of plant throughput time

2020 TARGETS CONFIRMED

€ billion

		@ 3-Apr	@ 13-May
	2019 A	2020 E	2020 E
Net Sales	5.3	Tot. Vol.: ~-18%÷-20% ~4.3 ÷ ~4.4 • High Value: ~-14% • Standard: ~-26%	confirmed
adj. EBIT margin	0.9 17.2%	~14% ÷ ~15%	confirmed
CapEx	0.39	~0.13	Confirmed
Net Cash Flow bef. Dividends	0.33	~0.23 ÷ ~0.26 assuming no dividends	confirmed
Net Financial Position (IFRS 16)	3.5	~3.3	confirmed

2020 OUTLOOK

MARKET AND PIRELLI PERFORMANCE

1Q 2020 FINANCIAL REVIEW

APPENDIX

1Q 2020 MARKET SCENARIO HEAVILY IMPACTED BY COVID-19

VERY CHALLENGING OUTLOOK, TYRE MARKET DEMAND AT ~-40% IN 2Q

KEY TRENDS IN 2Q TYRE MARKET DEMAND

Channels

• OE: <-40% globally (Car production <-45% YoY) >

• Repl: slightly better than OE, heavily impacted by lock-down measures >

High Value Regions

APac: cautious optimism in China (good April trends), but Japan and South East Asia to suffer >
EU and N. America: facing the worst quarter of the year, with deep demand contraction especially in OE >

Standard Regions

LatAm severely hit by lockdowns >
Russia impacted also by Oil crisis and Ruble trend >

DEEP DIVE ON COMPETITIVENESS AND COVID ACTIONS

CONTAINING PRODUCTION SLOWDOWN COSTS

COST COMPETITIVENESS AND COVID ACTIONS

Actions to mitigate the costs of reduced level of Capacity Utilization

> Adhesion to Social Safety Net
Reduction of complexity cost inside plants to maximize efficiency thanks to modularity and product range simplification >
> Faster mix rotation to privilege clients' service level
> Faster allocation of standard volumes in low cost plants
> Quick alignment of Raw material inflow to lowered needs
> Acceleration in Digitalization processes within Plants

ACCELLERATING COMMERCIAL DEVELOPMENT AND INNOVATION

COMMERCIAL DEVELOPMENT

DESTOCKING 1Q

Commercial policy aimed at maintaining low inventory levels with distribution partners (Mainly Europe & N. America)
Ready for the restart of activities

CHINA EXPOSURE

Leverage experience gained in China, where production and commercial activities are returning to normal
China rebound supporting in next quarters given our exposure (~12% Group Sales in 2019)

TRADE

Accelerating new clients activation in Europe and N. America
In Germany widening client Portfolio and renewing Franchising distribution

O.E.

• Client base broadening confirmed in N. America and APAC

TECHNOLOGY-BASED INNOVATION

NEW PRODUCTS INTRODUCTION

• Anticipating Product Roadmap milestones to introduce New Lines in 4Q 2020 (N. America and Europe)

2020 TARGETS: OPERATIONAL DRIVERS

€ billion

		@ 3-Apr	@ 13-May	2020 MAIN OPERATIONAL DRIVERS
	2019 A	2020 E	2020 E		2020 E
Net Sales	5.3	~4.3 ÷ ~4.4	confirmed	Volumes • o/w High Value	~ -18% ÷ -20% ~ -14%
adj. EBIT margin	0.9 17.2%	~14% ÷ ~15%	confirmed	• o/w Standard Price/mix	~ -26% ~ +2%
CapEx	0.39	~0.13	confirmed	Forex	~ -2%
Net Cash Flow bef. Dividends	0.33	~0.23 ÷ ~0.26 assuming no div.	confirmed	Efficiencies (net of inflation) Raw Mat.	~ +€110m ~ +€15m
Net Financial Position (IFRS 16)	3.5	~3.3	confirmed	Cost Cutting (Covid Actions) Slowdown	~ +€120m ~ -€90m

1 2020 OUTLOOK

2 MARKET AND PIRELLI PERFORMANCE

3 1Q 2020 FINANCIAL REVIEW

4 APPENDIX

1Q 2020 NET SALES BRIDGE

€ million

• 1Q Price/Mix performance: >

Price in line with 4Q'19 trend (O.E. re-negotiation and competitive dynamics on 18" non specialties)
Mix impacted by both the temporary negative Channel mix (better O.E. trend) and Regional mix (lower sales in Europe, N.A. and APac vs. EM) and limited contribution from H.V. / Std. relative performance.

1Q 2020 ADJUSTED EBIT BRIDGE

€ million

1Q 2020 CASH FLOW AND NET FINANCIAL POSITION

€ million

Main working capital dynamics in 1Q'20

▬ Inventories: 22%¹ on Sales (raw mat. and finished products increase, due to slowdown); ongoing actions to normalize this level through the year
▬ Trade receivables: 13%¹ on Sales (16% in 1Q'19), almost stable in absolute value vs. 2019 year end
▬ Trade payables: 19%¹ on Sales (22% in 1Q'19) due to the reductions of purchases and investments in line with the new outlook

CURRENT CAPITAL STRUCTURE (MARCH 2020)

€ million

Liquidity Margin covering maturities until 1Q'23, considering the extension option

1 2020 OUTLOOK

2 MARKET AND PIRELLI PERFORMANCE

3 1Q 2020 FINANCIAL REVIEW

4 APPENDIX

1Q 2020 RESULTS HIGHLIGHTS

€ million	1Q'19	1Q'20	Δ YoY

Revenues	1,314	1,052	-20.0%
Organic Growth1			-18.5%
High Value Revenues	895	732	-18.2%
% on total Revenues	68.1%	69.6%	+1.5 pp

EBITDA adjusted2	316	244	-22.6%
Margin	24.0%	23.2%	-0.8 pp
EBIT adjusted3	219	141	-35.6%
Margin	16.7%	13.4%	-3.3 pp
PPA amortization	-29	-29
Non recurring & restructuring costs	-7	-24
EBIT	183	88	-51.7%
Margin	13.9%	8.4%	-5.5 pp

Results from Equity Investments	2	-5
Financial Income (Charges)	-48	-33
EBT	137	51
Tax Rate	26.0%	24.0%
Net Income	101	38

1Q 2020 PIRELLI BALANCE SHEET

€ million	31-March-2019	31-Dec-2019	31-March-2020
Fixed assets related to continuing operations (before IFRS 16)	9,070	9,007	8,724
Right of use IFRS 16	472	463	451
Fixed assets related to continuing operations (incl. IFRS 16)	9,542	9,470	9,175
Inventories	1,166	1,094	1,137
Trade receivables	858	649	659
Trade payables	(1,143)	(1,612)	(961)
Operating net working capital related to continuing operations	881	132	835
Other receivables / payables	74	81	163
Net Working Capital related to continuing operations	955	213	998
Net invested capital held for sale	1	-	-
Total net invested capital	10,498	9,683	10,173
Equity	4,688	4,827	4,590
Provisions	1,423	1,349	1,322
Net Financial Position (excl. IFRS 16)	3,913	3,024	3,787
Lease Obligations (IFRS 16)	474	483	474
Net Financial Position (incl. IFRS 16)	4,387	3,507	4,261
Total financing and shareholders' equity	10,498	9,683	10,173

1Q 2020 PIRELLI GROUP CASH FLOW

€ million

	1Q'19	1Q '20
Adjusted EBIT1	219	141
Depreciation & Amortization (excl. PPA amortization)	97	103
Capital expenditures	(78)	(57)
Rights of use (IFRS 16)	(3)	(23)
Change in working capital / other	(836)	(861)
Operating Cash Flow	(602)	(697)
Financial income / (expenses)	(48)	(33)
Taxes paid	(30)	(31)
Cash-out for non recurring items and restructuring costs	(16)	(21)
Exchange rates difference / other	-	28
Net cash flow before dividends & extraordinary operations	(696)	(754)
Financial asset disposals / (acquisitions)	(17)	-
Net cash flow before dividends	(713)	(754)
Dividends paid	-	-
Net cash flow	(713)	(754)

2020 E RAW MATERIAL GUIDANCE

€ million

2020 E FOREX GUIDANCE

Breakdown FY 2019 A based on currency 18% USD 37% EUR 13% other 3% RUB 6% GBP 11% BRL 12% CNY MAIN AVERAGE EXCHANGE RATES 2019 A 2020 E ∆ YoY EUR / USD 1.12 1.10 -6.9% USD / BRL 3.95 5.08 +38.9% EUR / GBP 0.88 0.89 +0.7% EUR / RUB 72.4 79.3 +7.3% USD / CNY 6.9 7.03 +6.2% TOT. IMPACT ON SALES ∆ YoY vs. EUR +29.3% -1.0% -6.9% +7.3% +0.7% ~-2% 2020 E 4.07 7.05 1.12 73.0 0.90 ~-2% € million May-20 guid. Feb-20 guid. / / / / /

KEY CAR MARKET TRENDS: EUROPE

Milan, May 13th, 2020 26 Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement