Pirelli & C — Investor Presentation 2021

Nov 11, 2021

9M 2021 FINANCIAL RESULTS

Milan, November 11th, 2021

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.

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 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.

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, also following any further governmental measures related to the spread of COVID-19 (SARS-CoV-2) and any potential delay in the vaccines campaign.

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.

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.

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, 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 (liquidity) / debt Position, Net cash flow before dividends and convertible bond impact, Net cash flow before dividends & extraordinary operations, Net cash flow before dividends and Net cash flow.

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

> Industry scenario: positive outlook confirmed, but volatility is increasing

• Solid High Value Replacement demand and healthy pricing environment
• Higher volatility due to supply shortages (e.g. semi-conductor and logistics) and inflation
• Pirelli is fully seizing H.V. market recovery and anticipating external headwinds

> Industrial Plan delivery well on track in all programs

• Commercial: outperformance confirmed in Car ≥18"
• Innovation: product portfolio renewal on-going; increasing homologations in ≥19" and Specialties
• Competitiveness: reached 74% of FY'21 net efficiencies target
• ESG: progressing in our decarbonisation plan targeting 100% renewable electricity¹ worldwide by 2025 and carbon neutrality by 2030

> Solid 3Q results, driving the FY'21 guidance upgrade

• +10.9% price/mix in 3Q driven by price increase and mix improvement across segments
• €104 million Net Cash Flow (7.4% on Sales), supported by a tight working capital management
• Revenues and Net Cash Flow target raised, adjusted EBIT margin confirmed

2021 SCENARIO, STRATEGY & TARGETS

9M 2021 MARKET AND PIRELLI PERFORMANCE

9M 2021 FINANCIALS IN DETAIL

APPENDIX

2021 EXTERNAL SCENARIO UPDATE

MACRO-ECON.	INFLATION	TYRE DEMAND	TYRE PRICING
Growth momentum weakening	Rising rate	High Value demand outlook confirmed	Supportive pricing environment
>+5% Global GDP growth in 2021E, -0.2pp vs. Aug expectations due to supply chain disruptions & ongoing COVID outbreaks	Global inflation +3.7% in 2021E (Ind. Plan +2.3%) with headwinds on raw mat., energy, transportation & labour costs	FY'21E Car ≥18" demand +12% YoY, with sound Repl. (+18%) O.E. revised downwards	Additional price increases implemented in 3Q & October across Regions by all players

Pirelli is intensifying actions with all levers to counter external headwinds, i.e.:

• I. Price/mix improvement to offset Raw Mat. and FX
• II. Competitiveness Plan to more than cover inflation increase
• III. A well structured action plan to mitigate supply chain volatility impact

Milan, November 11th, 2021 4 Source: Pirelli Insight GDP growth estimates based on third party data; Pirelli Car Tyre market estimates based on third party and associations of tyre producers market data

INDUSTRIAL PLAN DELIVERY, WELL ON TRACK ON ALL PROGRAMS

	PLAN TARGETS	9M MAIN ACHIEVEMENTS	Ind. Plan
Commercial	• Capture H.V. rebound & gain share • Growing exposure to higher rims and technologies	• Vol. +10 pp vs. Car ≥18" market 66% weight of ≥19" (+3pp YoY)1 • • Elect volumes ~10x vs. 9M'20 levels
Innovation	• Homologations in ≥19" and Specialties • Speeding-up product pipeline with focus on Regional lines	• ~85% homologations ≥19", o/w ~45% Specialties • Product launches on going, with 5 new lines to tackle different regional Consumer needs (All seasons, Winter, push-lines)
Competitiveness	• Wave 2 program: €155M gross savings in FY'21 (4% of '20 baseline), €80M net	• €110M gross savings (€59M net)
Operations	• Completion of footprint rationalization and volumes ramp-up to full saturation	• Completed plant restructuring, with Gravatai closure (in 3Q) and Burton reorganization (in 2Q) • Capacity utilization confirmed above 90%
ESG	• Progressing our decarbonization Plan • Nurture Environment & Communities • Leadership among ESG evaluations	100% renewable power in EU2 • • Pirelli, BMW & Birdlife project for de-forestation free natural rubber in Indonesia • Confirmed in the UN Global Compact LEAD list - the only Automotive company

PIRELLI 9M 2021 RESULTS HIGHLIGHTS

€ million

599

Net Income Net Financial Position

FY 2021 CAR TYRE MARKET OUTLOOK UPDATE

> Lower 2021 Car market growth, mainly due to weaker O.E.

• O.E. impacted by chip shortage (O.E. total -1% YoY vs. +6% Aug. outlook; O.E. ≥18" +3%, -7pp vs. Aug. outlook)
• Repl. ≥18" trend confirmed (+18% YoY), slowing down in ≤17" (+8% YoY, -1pp vs. Aug. outlook) due to temporary lockdowns in 3Q
• > Pirelli 2021E volumes growth confirmed (~+14%÷~+15% YoY) benefitting from exposure to High Value where we are gaining share.

PIRELLI FY 2021 TARGETS UPDATE

€ billion	2020 A	@ 5-Aug 2021 E	@ 11-Nov 2021 E
Net Sales	4.3	~5.0 ÷ ~5.1	~5.1 ÷ ~5.15	• Volumes ~+14% ÷ ~+15% (Aug. guid. confirmed) • Price/mix ~+7% (Aug. guid. ~+4.5% ÷ ~+5%)
adj. EBIT margin	11.6%	~15% ÷ ~15.5%	confirmed	• FX ~-2% (Aug. guid. ~-2.5% ÷ ~-2%)
CapEx (% of Sales)	0.14 (3.3%)	~0.33 (~7%)	~0.33 (~6.5%)
Net Cash Flow bef. Dividends	0.211	~0.36 ÷ ~0.39	~0.39 ÷ ~0.41
Net Financial Position NFP / adj. EBITDA	3.3 3.65x	<3.0 ≤2.6x	confirmed
ROIC Post taxes	10.4%	≥16%	confirmed

Milan, November 11th, 2021 8 1. not including the impact related to Convertible Bond amounting to €41 million

2021 SCENARIO, STRATEGY & TARGETS

9M 2021 MARKET AND PIRELLI PERFORMANCE

9M 2021 FINANCIALS IN DETAIL

APPENDIX

CAR TYRE MARKET AND PIRELLI PERFORMANCE

H.V. market > 2019 level, with solid Repl. demand; O.E. impacted by chip shortage Pirelli outperformance confirmed in 3Q, despite a tough comparison base

COMMERCIAL PROGRAM PROGRESS

Strong over-performance mainly driven by ≥19" and Specialties

INNOVATION PROGRAM PROGRESS (1/2)

World's leading OEMs in Munich motor show chose Pirelli tyres for their EV cars

Pirelli FSC-certified tyres on display for the first time

Pirelli P Zero - with FSC-certified natural rubber & rayon fitted on:

• New BMW iX5 Hydrogen
• BMW X5 xDrive45e Plug-In Hybrid

INNOVATION PROGRAM PROGRESS (2/2)

in 3Q, completed the Cinturato family renewal

• Winter tyre for medium-sized cars and CUVs
• More Safety and Comfort with extendable tyre sipes, a Pirelli pioneered technology
• More mileage thanks to an innovative compound
• Developed with virtual simulation
• Eco-friendly tyre: low R. Resistance (B/C on EU label), low noise (A/B on EU label)

The Elect-marked Cinturato Winter 2 is available in selected sizes….

……as well as on Pirelli's cutting-edge Seal Inside technology.

The Cinturato Winter 2 offers market-leading performance in all sorts of winter weather, as proven by renowned German certification board TÜV SÜD, which has awarded Pirelli's new tyre its Performance Mark¹

ESG: PIRELLI, BIRDLIFE & BMW FOR DEFORESTATION FREE RUBBER IN INDONESIA

An additional milestone in our natural rubber sustainability journey, after producing the first ever FSC certified tyre in 2Q

3-year partnership project in Hutan Harapan rainforest (island of Sumatra), home to ~1,350 different animal species

Objectives:

• conserving a deforestation-free area of 2,700 hectares
• improving indigenous communities' quality of life
• promoting women's rights
• improving natural rubber quality
• Protecting endangered animal species

Project Activities - in line with Global Platform of Sustainable Natural Rubber¹goals

Agroforestry

Forest protection

Local community engagement & female empowerment

Good Agricultural practices Traceability and use of sustainable natural rubber

Milan, November 11th, 2021 14 1. GPSNR, the multi-stakeholder platform for the sustainable development of the natural rubber business, of which Pirelli, BMW and BirdLife are founder members

COMPETITIVENESS PROGRAM PROGRESS

9M'21 efficiencies delivery in line with Industrial Plan targets

2021 SCENARIO, STRATEGY & TARGETS

9M 2021 MARKET AND PIRELLI PERFORMANCE

9M 2021 FINANCIALS IN DETAIL

APPENDIX

9M 2021 RESULTS Milan, November 11th, 2021

9M 2021 NET SALES BRIDGE

Top line supported by strong commercial performance; record 3Q price/mix driven by price increases and mix improvement

1. Car ≥18" 2Q'20: -35%, -43% O.E., -30% Repl.

Milan, November 11th, 2021 17

9M / 3Q 2021 ADJUSTED EBIT BRIDGE

Strong Internal levers contribution offsetting external headwinds, 3Q margin YoY trend impacted by the reversal of 2020 COVID actions

9M 2021 NET INCOME BRIDGE

Earnings driven by improving operating performance

9M'21 NET FINANCIAL POSITION

Cash Flow better vs. 9M'19, due to Working Capital management

PIRELLI CAPITAL STRUCTURE AS OF SEPT. 30TH 2021

Liquidity Margin covering maturities until 1H'23, considering the extension option Cost of debt trend in line with FY'21 assumptions

€ million

9M 2021 RESULTS Milan, November 11th, 2021 21

2021 SCENARIO, STRATEGY & TARGETS

1H 2021 MARKET AND PIRELLI PERFORMANCE

1H 2021 FINANCIALS IN DETAIL

PIRELLI LEADING POSITION IN SUSTAINABILITY RANKINGS & INITIATIVES

Major sustainability ratings (Nov-21)	last update	score	positioning in the reference sector
	2020	84	#1 ATX Auto Components
	2021	Gold class	#1 Max score
	2020	A	#1 Max score
	2021	AA	#2 Auto Components (PI #2 / 36)
	2021	4.5 / 5	#1 Auto & Parts / Tyres
	2021	LEAD	#1 Max score
	2021	10.4	#3 Auto Components (PI #3 / 209)
	2020	B	#1 Auto Components (PI #1 / 78)
	2021	Platinum	n.a.
	2020	Advanced	#2 Automobiles (PI #2 / 40)

9M 2021 RESULTS Milan, November 11th, 2021 23

PIRELLI 3Q / 9M RESULTS HIGHLIGHTS

€ million

	3Q'20	3Q'21	Δ YoY	9M'20	9M'21	Δ YoY
Revenues	1,277	1,414	+10.7%	3,094	3,979	+28.6%
Organic Growth1			+10.5%			+31.0%
High Value Revenues	918	997	+8.7%	2,203	2,842	+29.0%
adj. EBITDA2	309	320	+3.5%	577	894	+54.9%
Margin	24.2%	22.6%	-1.6pp	18.7%	22.5%	+3.8pp
adj. EBIT3	214	221	+3.6%	280	599	n.m.
Margin	16.7%	15.7%	-1.0pp	9.1%	15.0%	+5.9pp
PPA amortization	(29)	(28)		(86)	(85)
Non recurring & restructuring costs	(33)	(15)		(99)	(87)
EBIT	152	178		96	426
Margin	11.9%	12.6%		3.1%	10.7%
Results from Equity Investments	(1)	(0)		(6)	2
Financial Income (Charges)	(40)	(35)		(113)	(107)
EBT	111	142		(24)	321
Tax Rate	24.2%	26.4%		25.0%	26.4%
Net Income	84	105		(18)	236
Net Income adjusted3	129	136		115	360

Milan, November 11th, 2021 24 1. Excl. FX; 2. before non-recurring items & restructuring costs; 3. before amortization of PPA, non-recurring items & restructuring costs; 3. calculated by adjusting Net Income (Loss) for EBIT adjustments, net financial expenses and taxes

PIRELLI BALANCE SHEET

€ million	30-Sept-2020	31-Dec-2020	30-Sept-2021
Fixed assets (before IFRS 16)	8,465	8,423	8,396
Right of use IFRS 16	444	434	427
Fixed assets (incl. IFRS 16)	8,909	8,857	8,823
Inventories	825	836	974
Trade receivables	949	598	939
Trade payables	(808)	(1,268)	(1,044)
Operating net working capital	965	166	869
Other receivables / payables	51	(26)	(29)
Net Working Capital	1,016	141	840
Total net invested capital	9,925	8,998	9,662
Equity	4,404	4,552	4,911
Provisions	1,269	1,187	1,036
Net Financial Position (excl. IFRS 16)	3,780	2,793	3,256
Lease Obligations (IFRS 16)	472	466	459
Net Financial Position (incl. IFRS 16)	4,252	3,258	3,715
Total financing and shareholders' equity	9,925	8,998	9,662

PIRELLI 3Q / 9M GROUP CASH FLOW

€ million

	3Q'20	3Q'21	9M'20	9M'21
Adjusted EBIT1	214	221	280	599
Depreciation & Amortization (excl. PPA amortization)	96	99	297	295
Capital expenditures	(25)	(61)	(106)	(213)
Rights of use (IFRS 16)	(15)	(10)	(62)	(60)
Change in working capital / other	(173)	(62)	(902)	(706)
Operating Cash Flow	97	188	(493)	(85)
Financial income / (expenses)	(40)	(35)	(113)	(107)
Taxes paid	(16)	(27)	(70)	(99)
Cash-out for non recurring items and restructuring costs	(42)	(33)	(91)	(103)
Exchange rates difference / other	15	11	23	12
Net cash flow before dividends & extraordinary operations	12	104	(745)	(381)
Financial asset disposals / (acquisitions)	-	-	-	4
Net cash flow before dividends	12	104	(745)	(377)
Dividends paid	-	(1)	-	(80)
Net cash flow	12	103	(745)	(457)

KEY CAR MARKET TRENDS: EUROPE

Milan, November 11th, 2021 27 Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement

KEY CAR MARKET TRENDS: NORTH AMERICA

Milan, November 11th, 2021 28 Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement; 1. N. America Replacement includes imports

9M 2021 RESULTS

KEY CAR MARKET TRENDS: ASIA PACIFIC

Milan, November 11th, 2021 29 Source: Pirelli tyre market estimates based on main data provider for the Region; historical market data may be subject to restatement

9M 2021 RESULTS

KEY MARKET TRENDS: RUSSIA, NORDICS, MEAI / SOUTH AMERICA

Milan, November 11th, 2021 30 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

9M 2021 RESULTS

RAW MATERIAL COSTS TREND AND MIX

main raw materials price trend

Pirelli 9M 2021 mix (based on purchasing cost)

PIRELLI MANUFACTURING FOOTPRINT