Pirelli & C — Investor Presentation 2021

May 12, 2021

1Q 2021 FINANCIAL RESULTS

Milan, May 12th, 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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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

> Positive 2021 scenario confirmed by 1Q strong rebound

• Yearly global GDP projections at +5.3%
• Robust tyre demand with ≥18" already above 1Q'19 levels
• Healthy pricing environment, key to offset raw materials headwind

First evidence of Industrial Plan Key Programs implementation in 1Q

• Significant share gains in ≥18" and ≥19"; in APac volume growth 2x market
• Homologations achieved in highly technological fitments, 2 new products launched in EU
• Cost competitiveness program on track
• Plants utilization back to ~90%

> 1Q results in line with expectations

• Sales growth driven by strong High Value overperformance vs. market (+13pp in Car ≥18")
• Profitability (13.6%, +0.2pp YoY) discounts costs to be reabsorbed over the course of the year, with EBIT margin expected to improve quarter over quarter
• Better cash flow trend vs. 1Q'20 (€100M lower cash absorption) linked to operating performance and working capital management

FY 2021 Guidance confirmed

>

>

2021 SCENARIO, STRATEGY & TARGETS

1Q 2021 MARKET AND PIRELLI PERFORMANCE

1Q 2021 FINANCIALS IN DETAIL

APPENDIX

POSITIVE 2021 SCENARIO CONFIRMED

Solid GDP rebound confirmed

+4.7% GDP '21-'22 avg. growth (plan +4.6%)

1Q FX volatility expected to ease in next months

Healthy demand in High Value

1Q ≥18" back to 2019 levels, FY confirmed at double digit growth

Strictly monitoring chip shortage evolution

Positive pricing environment

Healthy inventories at dealers level

Price increases kicking-in mainly from 2Q

MACRO-ECON TYRE DEMAND PRICING RAW MATERIALS

Inflationary scenario

Positive balance between Price/mix and raw mat. in 1Q, confirmed also in FY

STRATEGY IMPLEMENTATION PLAN: 1Q 2021 ACHIEVEMENTS

	PLAN TARGETS	1Q MAIN ACHIEVEMENTS
Commercial	• Capture H.V. rebound and gaining share • Growing exposure towards higher rims and technologies	• Volume growth +13pp vs. WW market in ≥18", even stronger performance in China • 66% weight of ≥19" (+2pp YoY), Elect volumes 8x vs. 1Q'20 levels
Innovation	• Homologations in ≥19" and Specialties • Speeding-up product pipeline with focus on Regional lines	• ~80% homologations ≥19", ~50% specialties • 2 EU Push products launched: «Powergy» and «New Cinturato All-Season SF2»
Competitiveness	• Wave 2 program: €155M gross savings in '21 (4% of '20 baseline), €80M net	• €26M gross savings (€15M net), in line with the expected quarterly delivery
Operations	• Completion of footprint rationalization and volumes ramp-up to full saturation	• On track with restructuring activities, Plant utilization already at ~90%

2021 TARGETS CONFIRMED

€ billion	2020 A	@ 31-Mar 2021 E	@ 12-May 2021 E
Net Sales	4.3	~4.7 ÷ ~4.8	confirmed
Adjusted EBIT margin	11.6%	>14% ÷ ~15%	confirmed
CapEx (% on sales)	0.14 (3.3%)	~0.33 (~7%)	confirmed
Net Cash Flow bef. Dividends & conv. Bond impact	0.21	~0.30 ÷ ~0.34	confirmed
Net Financial Position NFP / adj. EBITDA	3.3 3.65x	~3.0 ~2.7x	confirmed
ROIC Post taxes	10.4%	~16%	confirmed

2021 SCENARIO, STRATEGY & TARGETS

1Q 2021 MARKET AND PIRELLI PERFORMANCE

1Q 2021 FINANCIALS IN DETAIL

APPENDIX

IN 1Q 2021 PIRELLI OVER-PERFORMING MARKET IN ALL SEGMENTS

1Q 2021 RESULTS Milan, May 12th, 2021 8

COMMERCIAL 1Q 2021: STRONG PROGRESS IN THE QUARTER DRIVEN BY ≥19" AND SPECIALTIES

INNOVATION 1Q 2021: 2 NEW PUSH PRODUCTS LAUNCHED (i/ii)

INNOVATION 1Q 2021: 2 NEW PUSH PRODUCTS LAUNCHED (ii/ii)

COMPETITIVENESS PROGRAM ON TRACK

2021 SCENARIO, STRATEGY & TARGETS

1Q 2021 MARKET AND PIRELLI PERFORMANCE

1Q 2021 FINANCIALS IN DETAIL

APPENDIX

1Q 2021 NET SALES BRIDGE

€ million

1Q 2021 ADJUSTED EBIT BRIDGE

1Q 2021 NET INCOME BRIDGE

1Q 2021 RESULTS Milan, May 12th, 2021 16

1Q 2021 CASH FLOW AND NET FINANCIAL POSITION

Trend in line with the seasonality of the business. Lower cash absorption (~€100M) than in 1Q'20:

• inventory management (+€29M vs. +€111M in 1Q'20), mainly related to raw mat., while stock of finished products were down vs. 2020 year end
• higher cash absorption related to receivables (+€211M vs +€55M in 1Q'20) mainly due to higher sales recorded in the period
• lower cash absorption in payables (+€404M vs. +€655M in 1Q'20) as a consequence of lower payables in FY'20 than in FY'19

TOTAL GROSS DEBT STRUCTURE

€ million

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

1Q 2021 RESULTS Milan, May 12th, 2021 18

2021 SCENARIO, STRATEGY & TARGETS

1Q 2021 MARKET AND PIRELLI PERFORMANCE

1Q 2021 FINANCIALS IN DETAIL

1Q 2021 RESULTS HIGHLIGHTS

€ million

	1Q'20	1Q'21	Δ YoY
Revenues	1,052	1,245	+18.4%
Organic Growth1			+24.5%
High Value Revenues (% on total)	69.6%	72.6%	+3.0 pp
adj. EBITDA2	244	267	+9.1%
Margin	23.2%	21.4%	-1.8 pp
adj. EBIT3	141	169	+19.6%
Margin	13.4%	13.6%	+0.2 pp
PPA amortization	(29)	(28)
Non rec. & restr. costs	(24)	(43)
EBIT	88	97
Margin	8.4%	7.8%
Results from Equity Inv.	(5)	(0)
Financial Income (Charges)	(33)	(40)
EBT	51	57
Tax Rate	24.0%	26.4%
Net Income	39	42
Net Income adjusted4	76	94

1Q 2021 PIRELLI BALANCE SHEET

€ million	31-March-2020	31-Dec-2020	31-March-2021
Fixed assets related to continuing operations (before IFRS 16)	8,724	8,423	8,432
Right of use IFRS 16	451	434	439
Fixed assets related to continuing operations (incl. IFRS 16)	9,175	8,857	8,871
Inventories	1,137	836	875
Trade receivables	659	598	814
Trade payables	(961)	(1,268)	(862)
Operating net working capital related to continuing operations	835	166	827
Other receivables / payables	163	(26)	2
Net Working Capital related to continuing operations	998	141	829
Net invested capital held for sale	-	-	-
Total net invested capital	10,173	8,998	9,699
Equity	4,590	4,552	4,633
Provisions	1,322	1,187	1,155
Net Financial Position (excl. IFRS 16)	3,787	2,793	3,440
Lease Obligations (IFRS 16)	474	466	472
Net Financial Position (incl. IFRS 16)	4,261	3,258	3,912
Total financing and shareholders' equity	10,173	8,998	9,699

1Q 2021 PIRELLI GROUP CASH FLOW

€ million

	1Q'20	1Q '21
Adjusted EBIT1	141	169
Depreciation & Amortization (excl. PPA amortization)	103	98
Capital expenditures	(57)	(90)
Rights of use (IFRS 16)	(23)	(27)
Change in working capital / other	(861)	(717)
Operating Cash Flow	(697)	(567)
Financial income / (expenses)	(33)	(40)
Taxes paid	(31)	(37)
Cash-out for non recurring items and restructuring costs	(21)	(29)
Exchange rates difference / other	28	16
Net cash flow before dividends & extraordinary operations	(754)	(657)
Financial asset disposals / (acquisitions)	-	4
Net cash flow before dividends	(754)	(654)
Dividends paid	-	-
Net cash flow	(754)	(654)

KEY CAR MARKET TRENDS: EUROPE

KEY CAR MARKET TRENDS: NORTH AMERICA

Milan, May 12th, 2021 24 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

Milan, May 12th, 2021 25 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 & NORDICS / SOUTH AMERICA

Milan, May 12th, 2021 26 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

1Q 2021 RESULTS

RAW MATERIAL COSTS TREND AND MIX

main raw materials price trend

1Q 2021 mix (based on purchasing cost)

MANUFACTURING FOOTPRINT AS OF MARCH 31ST, 2021

1Q 2021 RESULTS Milan, May 12th, 2021