Pirelli & C — Investor Presentation 2021

Aug 5, 2021

1H 2021 FINANCIAL RESULTS

Milan, August 5th, 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.

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.

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

> Post Pandemic recovery accelerating

• Global GDP growth expected at >+5% CAGR '20-'22
• Strengthened demand in H.V., driven by Replacement, while O.E. impacted by chip-shortage
• Healthy pricing environment

> Industrial Plan Key Programs progressing well

• Significant share gains in ≥18" and ≥19" across Regions
• Product portfolio enriched with new regional lines in EU (1Q) and N. America (2Q)
• Cost competitiveness program: ~60% of yearly target reached in 1H'21
• Plants utilization above 90%
• Pioneering a sustainable tyre FSC² -Certified, nurturing Environment & Communities

> Strong 2Q results and positive environment drove a general upgrade in our FY Guidance

• In 2Q profitability at 15.8% (14.7% in 1H) supported by strong contribution of internal levers (volume, price/mix and efficiencies)
• Significant Net Cash Flow¹ generation in 2Q: €173M (13% of Sales), due to operating performance and working capital management
• Better volumes (H.V. Replacement) and higher price/mix driving upward guidance revision

2021 SCENARIO, STRATEGY & TARGETS

1H 2021 MARKET AND PIRELLI PERFORMANCE

1H 2021 FINANCIALS IN DETAIL

APPENDIX

POST PANDEMIC RECOVERY ACCELERATING IN 2021

Accelerating GDP recovery

+5% GDP '21-'22 avg. growth (Ind. Plan +4.6%) 2H Forex less volatile than in 1H

Improved High Value demand outlook

FY21E ≥18" demand increased thanks to stronger repl.

OE revised downwards, impacted by chip shortage

Supportive pricing environment

Healthy inventories at dealers level

Price increases being implemented across Regions

MACRO-ECON TYRE DEMAND PRICING RAW MATERIALS

Inflationary scenario

Oil derivatives prices above expectations

Price/mix offsetting raw material and Forex headwinds in FY

STRATEGIC IMPLEMENTATION PLAN: 2Q / 1H 2021 TOP ACHIEVEMENTS

• Progressing in Covid vaccination program in cooperation with national authorities
• R&D tailored graduate program launched
• First ever FSC² -certified tyres

• Develop new skills for business transf.

• Nurture Environment & Communities

ESG

PIRELLI 1H 2021 RESULTS HIGHLIGHTS

€ million

Net Income Net Financial Position -102 132 +233

Milan, August 5th, 2021 6 1. before amortization of PPA, non-recurring items, restructuring costs & other adjustments; 2. IFRS 16 accounting principle establishes a new way of accounting leasing contracts.

1H'20 1H'21

FY 2021 CAR TYRE MARKET OUTLOOK

CAR TYRE MARKET YEARLY TREND CAR TYRE MARKET 2H TREND -15% ~+10% Δ '21 vs. '19

> 2021 market growth confirmed with a better mix:

• stronger Repl., especially ≥18" (+18%, +6pp vs. old guid.)
• weaker O.E. impacted by chip shortage (in ≥18" +10%, 5pp vs. old guid.)
• > FY'21e Pirelli ≥18" volumes higher than initial guidance, market outperform. confirmed; ≤17" growth still slightly below market

• > 2H market with cautious O.E. and tough comparison base:
  • in 2H'20 partially recovering post 1st pandemic impact
  • in 2H'19 ≥18" market (+8% YoY) stronger vs. 1H'19 (+4%)
• > Pirelli 2He ≥18" trend overall in line with the market, gaining share in Repl.

PIRELLI FY 2021 TARGETS UPDATE

€ billion	2020 A	@ 31-Mar 2021 E	@ 05-Aug 2021 E
Net Sales	4.3	~4.7 ÷ ~4.8	~5.0 ÷ ~5.1	• Vol. +14% ÷ +15% (old. guid. +11% ÷ +13%) • P/Mix: +4.5% ÷ +5.0% (old. guid. +2.5% ÷ +3%)
Adj. EBIT margin	11.6%	>14% ÷ ~15%	~15% ÷ ~15.5%	• FX: -2.5% ÷ -2.0% (old. guid. -3.5%)
CapEx (% on Sales)	0.14 (3.3%)	~0.33 (~7%)	Confirmed
Net Cash Flow bef. Dividends	0.211	~0.30 ÷ ~0.34	~0.36 ÷ ~0.39
Net Financial Position	3.3	~3.0	<3.0
NFP / adj. EBITDA	3.65x	~2.7x	≤2.6x
ROIC After taxes	10.4%	~16%	≥16%

2021 SCENARIO, STRATEGY & TARGETS

1H 2021 MARKET AND PIRELLI PERFORMANCE

1H 2021 FINANCIALS IN DETAIL

APPENDIX

IN 1H 2021 SHARE GAINS IN ALL SEGMENTS

Milan, August 5th, 2021 10

COMMERCIAL 2Q / 1H 2021: TECHNOLOGIES BOOSTING GROWTH IN H.V.

INNOVATION PROGRAM 1H 2021: NEW HIGH LOAD TECHNOLOGY SUPPORTING GROWTH IN EV FITMENTS

Tyre for EVs Technologically challenging

In 1H Pirelli brought to life new HL technology

• EVs Customers looking for Performance & Safety
• EV tyres with challenging technological requirements:

load

Lower

grip

Rolling Resist.

noise

FIRST TYRE WITH THE NEW 'HL' HIGH LOAD MARKING FOR ELECTRIC OR HYBRID CARS & SUVS

• LUCID AIR THE FIRST CAR TO USE NEW "HL TYRE" • THE NEW TYRE FOR THE AMERICAN ELECTRIC SEDAN ALSO FEATURES ELECT AND PNCS TECHNOLOGIES

INNOVATION PROGRAM 1H 2021: THE "NEW SCORPION AS PLUS 3" UNVEILED IN NORTH AMERICA, AFTER LAUNCHING EU PRODUCTS IN 1Q

INNOVATION PROGRAM 1H 2021: WORLD PREMIERE OF FOREST STEWARDSHIP COUNCIL-CERTIFIED TYRE

First and only Forest Stewardship Council-certified tyres, containing FSC-certified natural rubber and rayon

All these aspects are verified by accredited certification bodies all along the supply chain up to Pirelli factory

FSC Labelled

• "Perfect fit" for the new BMW X5 xDrive45e Plug-in-Hybrid
• High performance tyres, with A class rolling resistance according to the European tyre label

COMPETITIVENESS PROGRAM 1H DELIVERY IN LINE WITH FY TARGETS

2021 SCENARIO, STRATEGY & TARGETS

1H 2021 MARKET AND PIRELLI PERFORMANCE

1H 2021 FINANCIALS IN DETAIL

APPENDIX

TOP LINE SUPPORTED BY STRONG COMMERCIAL PERFORMANCE; PRICE INCREASE EFFECTIVE IN 2Q

72%

2,565

€ million 768 71% 55 Standard High Value 1,816

(74)

▬ USD vs. EUR -9% ▬ BRL vs. EUR -17% ▬ RUB vs. EUR -15%

1H 2021 RESULTS

Milan, August 5th, 2021 17 ¹ Car ≥18'' 2Q'20: -35%, -43% OE, -30% Repl

STRONG INTERNAL LEVERS CONTRIBUTION LEADING TO A PROFITABILITY IMPROVEMENT

€ million

1H 2021 NET INCOME BRIDGE

Milan, August 5th, 2021 19

CASH FLOW TREND BETTER VS 1H19 DUE TO WORKING CAPITAL MGMT.

other

TOTAL GROSS DEBT STRUCTURE

€ million

Net Financial Position Gross Debt maturity

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

1. including assets at fair value through P&L

1H 2021 RESULTS Milan, August 5th, 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 (Aug-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
	2020	LEAD	#1 Max score
	2021	10.4	#3 Auto Components (PI #3 / 209)
	2020	B	#1 Auto Components (PI #1 / 78)
	2020	Gold	n.a.
	2020	Advanced	#2 Automobiles (PI #2 / 40)

1H 2021 RESULTS

PIRELLI 2Q / 1H RESULTS HIGHLIGHTS

€ million

	2Q'20	2Q'21	Δ YoY	1H'20	1H'21	Δ YoY
Revenues	765	1,320	+72.6%	1,816	2,565	+41.2%
Organic Growth1			+73.9%			+45.3%
High Value Revenues (% on total)	72.4%	71.2%	-1.2pp	70.8%	71.9%	+1.1pp
adj. EBITDA2	24	307	n.m.	268	574	n.m.
Margin	3.1%	23.3%	+20.2pp	14.7%	22.4%	+7.7pp
adj. EBIT3	(74)	209	n.m.	67	377	n.m.
Margin	-9.7%	15.8%	+25.5pp	3.7%	14.7%	+11.0pp
PPA amortization	(29)	(28)		(57)	(57)
Non recurring & restructuring costs	(42)	(29)		(66)	(72)
EBIT	(145)	151		(57)	249
Margin	-19.0%	11.5%		-3.1%	9.7%
Results from Equity Investments	1	2		(5)	2
Financial Income (Charges)	(41)	(32)		(73)	(72)
EBT	(185)	122		(135)	179
Tax Rate	n.m.	26.4%		24.4%	26.4%
Net Income	(140)	89		(102)	132
Net Income adjusted3	(90)	130		(13)	224

Milan, August 5th, 2021 24 1. Excl. FX; 2. before non-recurring items & restructuring costs; 3. before amortization of PPA, non-recurring items & restructuring costs; 4. calculated by adjusting Net Income (Loss) for EBIT adjustments, net financial expenses and taxes

PIRELLI BALANCE SHEET

€ million	30-June-2020	31-Dec-2020	30-June-2021
Fixed assets (before IFRS 16)	8,619	8,423	8,446
Right of use IFRS 16	449	434	442
Fixed assets (incl. IFRS 16)	9,068	8,857	8,888
Inventories	962	836	957
Trade receivables	628	598	803
Trade payables	(858)	(1,268)	(967)
Operating net working capital	731	166	792
Other receivables / payables	145	(26)	(32)
Net Working Capital	876	141	761
Total net invested capital	9,944	8,998	9,648
Equity	4,404	4,552	4,799
Provisions	1,275	1,187	1,031
Net Financial Position (excl. IFRS 16)	3,782	2,793	3,342
Lease Obligations (IFRS 16)	482	466	477
Net Financial Position (incl. IFRS 16)	4,265	3,258	3,819
Total financing and shareholders' equity	9,944	8,998	9,648

PIRELLI 2Q / 1H GROUP CASH FLOW

€ million

	2Q'20	2Q'21	1H'20	1H '21
Adjusted EBIT1	(74)	209	67	377
Depreciation & Amortization (excl. PPA amortization)	98	99	201	197
Capital expenditures	(25)	(63)	(81)	(153)
Rights of use (IFRS 16)	(24)	(23)	(47)	(50)
Change in working capital / other	132	73	(729)	(644)
Operating Cash Flow	107	295	(590)	(273)
Financial income / (expenses)	(41)	(32)	(73)	(72)
Taxes paid	(22)	(35)	(54)	(72)
Cash-out for non recurring items and restructuring costs	(28)	(40)	(49)	(69)
Exchange rates difference / other	(20)	(15)	8	1
Net cash flow before dividends & extraordinary operations	(4)	173	(758)	(485)
Financial asset disposals / (acquisitions)	-	-	-	4
Net cash flow before dividends	(4)	173	(758)	(481)
Dividends paid	-	(79)	-	(79)
Net cash flow	(4)	93	(758)	(560)

KEY CAR MARKET TRENDS: EUROPE

1H 2021 RESULTS

KEY CAR MARKET TRENDS: NORTH AMERICA

Milan, August 5th, 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

KEY CAR MARKET TRENDS: ASIA PACIFIC

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

Milan, August 5th, 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

1H 2021 RESULTS

RAW MATERIAL COSTS TREND AND MIX

main raw materials price trend

Pirelli 1H 2021 mix (based on purchasing cost)

1H 2021 RESULTS

PIRELLI MANUFACTURING FOOTPRINT