Pirelli & C — Investor Presentation 2021

Mar 31, 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 eventual 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.

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 2020 final results will be approved by the Board of Directors scheduled on the 31stof March 2021 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 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 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.

TODAY'S PROGRAM

TIME	TOPIC	SPEAKER
13.30 - 13.50	1. STRATEGIC GUIDELINES & PLAN SUMMARY	MARCO TRONCHETTI PROVERA Executive V. Chairman & CEO
13.50 - 14.00	2. MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN	ANDREA CASALUCI General Manager Operations
14.00 - 14.20	2.1 COMMERCIAL	MATTIA BUSSACCHINI SVP Commercial Operations
14.20 - 14.35	2.2 INNOVATION	PIERANGELO MISANI SVP Research & Development and Cyber
14.35 - 15.00	ST 1 Q&A SESSION
15.00 - 16.10	BREAK
16.15 - 16.35	2.3. – 2.5 COMPETITIVENESS, OPERATIONS & DIGITAL TRANSFORMATION	ANDREA CASALUCI General Manager Operations
16.35 - 16.55	3. TARGETS	FABIO BOCCHIO SVP Planning & Controlling
16.55 - 17.25	ND 2 Q&A SESSION
17.25 - 17.30	CLOSING REMARKS	MARCO TRONCHETTI PROVERA Executive V. Chairman & CEO

AGENDA

What the 2020 Covid crisis has taught us STARTING POINT

Strong reaction in terms of togetherness and participation

Learning also from Pirelli China, we launched countermeasures

Decision supported by insights, predictions and early warning system

Resilient response to social, economic and environmental stresses

OUR TEAM IS MORE ENGAGED

FASTER IN ADAPTING TO THE VOLATILE ENVIRONMENT

MORE DATA DRIVEN SUSTAINABILITY AT THE CORE

MACROECONOMICS

Data indicates two distinctive phases

'21-'25 overall: China growth engine +5.8%, us at +3.4%, eurozone at +2.5% - euro appreciation

DEMOGRAPHICS SCENARIO

High-end consumers growing and far more digital

High-end Consumer growth confirmed

Global # Households (Million) with Annual Income >\$75 K

Covid has re-prioritized some Core Values

Safety – Well-being

Digital economy (e-commerce, remote working & learning, delivery, telemedicine)

Servitization

Purpose, culture and inclusivity

Climate Emergency

Online shopping booming also in tyres

Total market B2C sales through online channels, %

55% of world population "digital natives" in 2025

MOBILITY SCENARIO: MILES DRIVEN

Car Global Miles Driven, Trillion

By 2025 ~2/3 of miles driven increase from private cars, reaching old plan levels

MOBILITY SCENARIO: EVs

Positively impacted by growing

Electric vehicles growth accelerated, pushing demand for technology tyres

EV¹ Penetration in Premium & Prestige production

EV¹ penetration in Global Premium & Prestige Car Parc

Tyre for EVs Technologically challenging

• EVs Customers mostly "Motorheads" and "Tech enthusiast", looking for Performance & Safety features
• EV tyres have to meet challenging technological requirements:

Higher load

Rolling Resistance

Lower noise

GREEN TRANSITION

Higher grip

EV SPECIALTY TYRES HIGHER COMPETITIVE BARRIERS

Rich H.V. Demand particularly in ≥19" WORLD CAR & TYRE MARKET

Car production

≥18" O.E. Tyre market

Car parc

≥18" Replacement Tyre market

High value tyre demand: double digit growth by '22e, high single digit by '25e

Emerging

PIRELLI WELL POSITIONED IN THE H.V. COMPETITIVE SCENARIO

In this scenario Pirelli has grown its array of competitive strengths

Conventional 2 Wheels

Brand of choice for reputation, leadership and high tech

Very favorable scenario for Pirelli SUMMARY

Two Phase Macro-Economic Growth: strong rebound till 2022, followed by steady state growth, both confirming High Value segment opportunity

China Leading Macro-Economic Growth where Pirelli is leader in the ≥18"

High-End Consumer Growth, with higher than expected use of private cars & 2-wheels

Demand for technologically sophisticated EV Tyres rapidly increasing

STRATEGIC GUIDELINES

In continuity with Febraury 2020 plan Additional & Accelerated

Focus on H.V. Market, growing and resilient

• Capitalize on array of strengths
• Green Transition spurring innovation and enhancing Competitive Barriers

Growth in Specialties/EVs and ≥19"

Rebalancing O.E. (-) and Replacement (+)

• China acceleration
• Consumer Insights feeding:
  • Online to Offline Commerce
  • Replacement-only products
• Digital Business Model coming on stream

Fully Capture 2021-2022 rebound opportunities

Accelerate cash generation as a remodelled High Value Specialties Leader

On the highest growing and most profitable segments PIRELLI FOCUS

≥18" O.E. Tyre market

≥18" Replacement Tyre market

STRATEGY IMPLEMENTATION PLAN: KEY PROGRAMS' IMPACT

	2021 - 2022	2023 - 2025
	Fully capture rebound opportunities	Accelerate cash generation as a remodelled specialties leader
Commercial	Revenue Increase: ~+€0.8B ÷ ~+€1B Volume based	Revenue Increase: ~+€0.6B ÷ €0.9B Volume and mix based
Innovation	Product Launches / year : ~10 Technical homologations / year : ~330	Product Launches / year: ~ 8 Technical homologations / year ~300
Competitiveness	Net efficiencies ~€170M, 4.5% vs. baseline'20	Net efficiencies ~€70M÷€100M; 2% ÷ 2.5% vs. baseline'20
Operations	Footprint rationalization and organization streamlining completed	H.V. capacity in Low Cost Countries from 74% in '20 to 77% in '25

Investing in H.V. Capacity and mix upgrade (≥19'' & specialties) CAPEX

ALL KEY PROGRAMS WILL LEVERAGE ON PROACTIVE PEOPLE STRATEGY

PEOPLE AT THE HEART OF OUR JOURNEY

Our Ambitions in 2025

Wellbeing

[# of New Initiatives]

Protect our employees, safe workplace and healthy lifestyle Shift from traditional welfare programs to tailored wellbeing initiatives New policies to increase flexibility and autonomy of people Support business transformation with up/reskilling initiatives Exploit Professional Academies, leveraging on senior experts' knowledge Develop life-long learning culture Support education and knowledge development partnering with local Communities & Universities Promote social values and improve standard of living (cooperation with hospitals, volunteering initiatives,…) Caring Knowledge Social Inclusion

Integrate company culture with perspectives, coming from diverse personal and professional areas

Our Priorities

2021-22/25 TARGETS

€ billion	2020 A	2021 E	2022 E	2025 E
Net Sales	4.3	~4.7 ÷ ~4.8	~5.1 ÷ ~5.3	~5.7 ÷ ~6.2
Adjusted EBIT margin	11.6%	>14% ÷ ~15%	>16% ÷ ~17%	~19% ÷ ~20% o/w
CapEx (% on sales)	0.14 (3.3%)	~0.33 (~7%)	~0.38 ÷ ~0.4 (~7.5%)	~9% in '23 ~1.3 ~1.2 ÷ ~7.5% in '24 cum '23-'25 ~6% in '25 (~7.5% avg)
Net Cash Flow bef. Dividends & conv. Bond impact	0.21	~0.30 ÷ ~0.34	~0.42 ÷ ~0.46	~1.9 ~1.7 ÷ o/w cum '23-'25 ~0.5 in '23
Net Financial Position NFP / adj. EBITDA	3.3 3.65x	~3.0 ~2.7x	~2.75 ÷ ~2.65 ~2x	~0.6 in '24 ~1.6 ÷ ~1.4 ~0.7 in '25 ~1x
ROIC Post taxes	10.4%	~16%	~19%	~25%

Dividend policy: ~50% pay out of 2021-22 net income; 40% of 2023-24 net income

OPPORTUNITY AND FLEXIBILITY VS TARGETS 2021-25

OUR SUSTAINABILITY STRATEGY: KEY TARGETS

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Area		Focus		KPIs	2020A	2025E	2030E
	SAFETY FIRST	Towards zero accidents at work		Accident frequency index	0.22	<0.10
	PRODUCT ECO	Improve Rolling	Target scope: new products	RR1 = A/B	39%	>70%
	& SAFETY PERFORMANCE	Resistance with no compromise on safety	(all new labelled IPCodes)	WG1 = A/B	87%	>90%
		Increase the % of	Target scope:	Renewable	23%	>40%	>60%
MATERIALS	INNOVATION	renewable and recycled materials while reducing fossils	Selected products	Recycled	1%2	>3%2	>7%2
				Fossil based	68%	<40%	<30%
	TOWARDS			CO 2 (plants)	-31% (COVID impact) -12,5% (target)	-25% vs 20153	Carbon neutrality
	DECARBONIZATION	Reduce CO footprint 2		CO 2 (suppliers raw mat.)	-22% (COVID impact) -2,5% (target)	-9% vs 20183
				Renewable electricity	52%4	100%

We will deliver our strategy through our people: Passionate, engaged and highly skilled in a safe and inclusive environment

1. RR: Rolling Resistance, WG: Wet Grip, focus on new labelled IPcode; 2. Excluding metals; 3. Target approved by the Science Based Target Initiative in line with "well below 2° scenario"; 4. Internal assessment based on data from the International Energy Agency (IEA) taking into account the geographical distribution of Pirelli

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

HIGH VALUE CAR TYRE DEMAND

≥19" growing double-digit, 3-5pp faster than ≥18"; demand from pure EVs booming, sizable in '22-'25

PURE EV PENETRATION IN PREMIUM & PRESTIGE

Higher than traditional ICE, leading to a rich tyre market

PIRELLI'S JOURNEY TO EV PREMIUM & PRESTIGE LEADERSHIP

Rich project pipeline, supporting mix improvement

EV Contribution to High Value Pirelli positioning at 2025

Growth in rim

Higher weight and torque call for high performance tyres

17" 18" 19"

Q4-tron

Premium Price

EV car (price higher than ICE) calls for Premium fitments and more technology in tyres

Loyalty Rate¹ EV > ICE

OE Premium EV Market share vs. traditional ICE Premium market share

CHINA A LONG LASTING OPPORTUNITY

Boosting High Value tyre market in the Region

China ≥18" OE + Replacement tyre market

Outperforming the market in the next 5 years

China ≥18" OE + Replacement PIRELLI volumes

Pirelli consolidating leadership position in HV

22

China and EV as key drivers of growth PRESTIGE

Prestige new trends

Pirelli undisputed leadership

1 out 2 Prestige car fitting Pirelli tyres

• Consumer digital engagement
• P ZEROTM EXPERIENCE: a new, distinctive business model for Pirelli and its Partners
• Service excellence thanks to dedicated supply chain
• Technologies: PNCS, Elect and Cyber

PLAN MAIN PROGRAMS

2021-22			2023-25
	COMMERCIAL	Capture H.V. market rebound, thanks to: Acceleration of new product launches Rich homologation portfolio China fast growth	Rebalancing OE / Repl in favour of Replacement High Value Specialties & ≥19" growth Consumer Value pricing & Journey Management Stabilization of Standard in profitable niche
	INNOVATION	New Products time to market reduced, through Virtualization and Modelling Modularity & Commonality vs. variety Sustainability: Eco & Safety design – LCA*	Processes innovation / robotics Growth in EV solutions Connectivity becoming mainstream Sustainability, strong focus on recycled materials
	COMPETITIVESS	Complete the Wave 1 and Wave 2 programs	Draw benefits from Wave 3, especially Digital Transformation benefits
	OPERATIONS	Ramp-up volumes to full saturation Completion of industrial footprint rationalization and delocalization	Process innovation & IIoT Selective High Value capacity increase Supply chain streamlining
	DIGITIZATION	Adoption of new customers, consumers and salesforce workflows and analytics Integrated long-term business planning	Coming on stream: Product life cycle management Intelligent operations Integrated operational business planning

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

PIRELLI VS. MARKET

Overperforming in High Value taking advantage of already achieved homologation

HIGH VALUE REPLACEMENT

Key initiatives to gain shares

As a result of strong relationship with OEMs WIDE RANGE OF SPECIALTIES

Focus on ≥19''

To be furtherly boosted by future homologations pipelines

Focus on Specialties⁴

• ~70% of ≥18" Repl. Volumes in 2025
• Extending specialties product range
• Pirelli Leadership in technologies²
• Strong O.E. Loyalty Replacement rate
• Higher value added proven by sell-out prices up to +20%

Competitive barrier: loyalty rate >80%³

DEEPER UNDERSTANDING OF CONSUMER NEEDS Consumer Driver

"Perfect fit" in designing regional product lines

28

DEEPER UNDERSTANDING OF CONSUMER NEEDS

"Perfect fit" in designing regional product lines

TOP 6 PURCHASE DRIVERS
	Relevance
RELIABILITY & TRUST	100
GOOD REPUTATION	95
COMFORTABLE DRIVE	88
HIGH QUALITY (ALL SEASON T.)	81
DURABILITY	79
SAFETY (SAVE DRIVE)	74

DEEPER UNDERSTANDING OF CONSUMER NEEDS

"Perfect fit" in designing regional product lines

191 VI VIVINVE VIVING VINIEW
	Relevance
DURABILITY	100
COMFORTABLE DRIVE	92
RELIABILITY & TRUST	87
HIGH QUALITY (ALL-SEASON T.)	86
GOOD REPUTATION	79
SAFETY (EXCELLENT GRIP)	75

DISTRIBUTION NETWORK

Will coherently support the Replacement regional strategy

Increase market coverage in Pirelli Retail thanks to new product lines and digital tools

Tier1 program reinforcement with top distribution players Coverage increase

thanks to new products (online, regional chains and distributors)

Keep expanding controlled retail network, introducing Prestige retail concept; High Value leadership with top Online players

THE ROLE OF BIG DATA ANALYTICS

O.E.- Replacement integrated sales process to maximize effectiveness

Predictive Market Intelligence CRM B2B2C Implementation

Data Science know-how and dedicated tools to accurately identify commercial opportunities

+ 5pp increase market penetration vs market(1) +5% service level improvement(2)

B2B New sales force and customer relation approach 2021 2020 2022 +15% sales visits +30% Points of sale +20% Contact Center efficiency

B2C New relation with consumer and Life cycle management targeting by 2022:

• +10pp Cross selling (consumer with 2 products or more – summer+winter or moto+car)
• +10 points NPS(3)

THE ROLE OF BIG DATA ANALYTICS

Premium & Prestige car parc analytics integrated in company process

Car parc Car parc Car parc

CAGR 20-22: +3% CAGR 25-22: +3%

CAGR 20-22: +2% CAGR 25-22: +2%

CAGR 20-22: +8% CAGR 25-22: +6%

Porsche 911 example

2025 Premium & Prestige car parc >190M:

• Forecast visibility beyond 2025
• Linked to tyre fitments info generating billion of market potential data
• Collected into unique Data-Lake feeding dedicated
  • sales force tools
  • forecasting tools

Reallocation towards conversion MARKETING SPEND

Pirelli Global Brand Investments in Consumer Journey funnel

Pirelli «Click to Buy» Platform

Thanks to advanced digital solutions:

• Funnel consumers on Pirelli digital properties where they can have an immersive experience in Pirelli product and solutions
• Enable the consumers to finalize the purchase leading them to our trade partner's platforms:

Online: Click to buy Offline¹ : Shopping windows

HIGH VALUE O.E. KEY INITIATIVES

SOLID PROJECT PIPELINE THANKS TO ALREADY ACHIEVED HOMOLOGATIONS

85% 21-22 volumes coming from business already running/sourced to Pirelli

FOCUS ON ≥19"

50% of total volumes from 2022 and ~90% new homologations in 2025

CUSTOMER – BASE DIVERSIFICATION

Growing in North America and APac (+6pp in volumes incidence in the next 5 years)

INCREASE EV PENETRATION

in 2025 "Elect" marking in ~30% OE ≥18" fitments

STD

Stabilization of standard volumes at double digit Ebit margin STANDARD

Pirelli Car Standard volumes

2 WHEEL HIGH VALUE LEADERSHIP

Enhance moto positioning, projecting solid growth in the cycling, exploiting 2-wheel favourable market

SESSION AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

INNOVATION MODEL

Leveraging our strengths, further developing enablers to accellerate product solutions Vs. previous plan

How we constantly get inspiration to foster our cutting edge innovation OUR INNOVATION MODEL STRENGTHS

Collaboration with top Car makers Constant feedbacks from consumers Leading research & innovation

OE Leadership: 2x Homologations on Marked items

Consumer Insights through O2O Journey, regionally tailored products

Open Innovation Model: Forefront Suppliers, Universities & Innovation Hubs

WE KNOW WHERE TECHNOLOGY AND SOLUTIONS ARE GOING

WE KNOW HOW CONSUMER NEEDS ARE EVOLVING

PEOPLE SKILLS: RESHAPING THE FUTURE OF R&D

Empowerment and spread of new competencies through acquisition and upskilling

DESIGN INNOVATION

Virtualization and Simulation bringing tangible benefits in both product development and industrialization

1. Renewable Materials are natural resources, such as agricultural product or biomass, that, after exploitation, can return to their previous stock levels by natural processes of growth or replenishment(*), on a human time scale(**). Fossil resources and minerals are not renewable resources. Definition based on: (*) OECD glossary definition at https://stats.oecd.org/glossary/detail.asp?ID=2290 ); (**) ISO 17422:2018(en) Plastics — Environmental aspects — General guidelines for their inclusion in standards); Recycled materials are materials derived from the conversion of waste, by means of any recovery operation which returns substances or

materials used to fulfil a particular function, in place of virgin raw materials. Recycled materials are no more classified as a waste. Recycled materials do not include materials that are to be used as fuels, as other means to generate energy, or for backfilling operations. Definition based on Dir 2008/98/EC "Waste Framework Directive" 42

INDUSTRIAL PROCESS DESIGN

Integrated roadmaps and Data driven process design to support industrial efficiencies

MODULARITY

Extension of modularity concept to planning and processes to optimize variety management

PIRELLI ECO & SAFETY LEADERSHIP

Sustainability pervasive innovation approach

Speeding up Product Pipeline with focus on Regional Consumer Driven Lines PRODUCT SOLUTIONS

Product renewal Acceleration

46

New Homologation Pipeline focused on Top-end range (≥19) and Specialties PRODUCT SOLUTIONS

From ~70% in 2017-19 to ~90% expected in 2025

From 47% in '20 to ~60% of ≥18 New Homologations in '25

EVs to represent more than half of homologations in 2025 PRODUCT SOLUTIONS

CYBERTYRE Hits the ground as the first tyre system

2020-2022 WORLD FIRST TYRE SYSTEM IN A SERIES CAR

A road of features towards vehicle safety, fleet & data solutions

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

Wave 2 confirmed, Wave 3 worth ~€70M÷€100M cumulated '23-'25 Net impact COST COMPETITIVENESS

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

MANUFACTURING CAPACITY

Back to 90% saturation already in 2022, capacity increase in '23-'25 to support volume growth

CAR MANUFACTURING FOOTPRINT EVOLUTION

Rationalization completed by 2022, 2023-2025 H.V. capacity growth in Low Cost Countries

Platform enhancing plant efficiency and aiming at zero defect INDUSTRIAL IOT

Higher efficiency, Zero Defect Manufacturing, immediate Best Practice sharing across plants

SUSTAINABLE INDUSTRIAL FOOTPRINT

100% renewable electricity worldwide by 2025

Group Carbon Neutrality by 2030

Commitment to the Science Based Target initiative

in alignment with our CO2 emissions reduction strategy¹

Most efficient plants in terms of sustainability²

(e.g. excellence in water management, zero waste to landfill)

CUSTOMER CENTRIC SUPPLY CHAIN

Enhancing service level through dedicated supply chains and digital customers integration

55

TIER-1 Synchronized supply chain with car build schedule Collaborative Make To Order with top distributor to deliver >95% service guaranteed* Yearly Frozen Make To Stock and express delivery service for selected high profitability items OEMs SPECIALTY Dedicated Production and Delivery exploiting geolocalized Parc to optimize forecasts (one day shipping) PRESTIGE (small seller) LONG RUN (best seller) Predictive preparation and distribution, with full-truck load and routing efficiency

5 dedicated supply chains Customers digital integration

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

BY 2023 A TOTALLY REMODELED, "SIMULTANEOUS" COMPANY

• Workflows integrating internal functions with external partners/ customers
• Integration is real time, 24/7, data intensive
• All data stored in shared "data lake" enabling better interpretation by AI models
• 5 leading-edge platforms supporting workflows

Plan factors in only first bottom up improvements, in a typically exponential curve

STRATEGY IMPLEMENTATION PLAN: RECAP

	Brand heritage & Open Sky innovation	H.V. ≥19", Specialties, EVs	H.V. capacity in low cost countries	High cost capacity rationalization	China	High Technology Sports Activities	Speed Effectiveness Integration Efficiency
Commercial							
Innovation							
Competitiveness							
Operations							
Digitization							

All programs leveraging & enhancing Pirelli strengths

AGENDA

1 STRATEGIC GUIDELINES & PLAN SUMMARY

2 MARKET OUTLOOK & STRATEGY IMPLEMENTATION PLAN

2.1 COMMERCIAL

2.2 INNOVATION

2.3 COMPETITIVENESS

2.4 OPERATIONS

2.5 DIGITIZATION

3 TARGETS

2021-22/25 TARGETS

€ billion	2020 A	2021 E	2022 E	2025 E
Net Sales	4.3	~4.7 ÷ ~4.8	~5.1 ÷ ~5.3	~5.7 ÷ ~6.2
Adjusted EBIT margin	11.6%	>14% ÷ ~15%	>16% ÷ ~17%	~19% ÷ ~20% o/w
CapEx (% on sales)	0.14 (3.3%)	~0.33 (~7%)	~0.38 ÷ ~0.4 (~7.5%)	~9% in '23 ~1.3 ~1.2 ÷ ~7.5% in '24 cum '23-'25 ~6% in '25 (~7.5% avg)
Net Cash Flow bef. Dividends & conv. Bond impact	0.21	~0.30 ÷ ~0.34	~0.42 ÷ ~0.46	~1.9 ~1.7 ÷ o/w cum '23-'25 ~0.5 in '23
Net Financial Position NFP / adj. EBITDA	3.3 3.65x	~3.0 ~2.7x	~2.75 ÷ ~2.65 ~2x	~0.6 in '24 ~1.6 ÷ ~1.4 ~0.7 in '25 ~1x
ROIC Post taxes	10.4%	~16%	~19%	~25%

Dividend policy: ~50% pay out of 2021-22 net income; 40% of 2023-24 net income

2021-2022 REVENUES TREND

€ billion		YoY ~+10% ÷	~+12%	YoY ~+7% ÷ ~+10%
	High Value Standard	4.3 70%	~ 4.7 ÷ ~ 4.8 ~ 71%	~ 5.1 ÷ ~ 5.3 ~ 73%
		2020 A	2021 E	2022 E
Volumes		-15%	~ +11 ÷ ~ +13%	Mid-single-digit
	High Value	-9%	~ +15 ÷ ~ +17% Outperf. Car ≥18" market	Outperf. Car ≥18" market
	Standard	-21%	~ +6 ÷ ~ +8% (recovering in LatAm & Russia)	Slightly declining (reducing the exposure to Car ≤16")
Price/mix		+1.2%	~ +2.5 ÷ ~ +3%	Slightly higher vs. 2021 performance
Forex		-5.1%	~ -3.5%	Slightly negative

2021-2022 PRICE-MIX TREND

EFFICIENCIES 2020-22

Covid actions '20-21

20-22 Competitiveness Plan confirmed

• 2 nd Wave almost in line with 2020 Feb plan despite a lower Standard production saturation vs. the old plan
• Lower benefits on manufacturing and product cost partially covered by higher SG&A and Organization savings

2020 Short term cost cutting plan to counterbalance Covid-19

2021 Reverse Impact

• €73 million of costs related to activities kept on–hold in 2020 (65% of 2020 gross efficiencies)
• • €44 million linked to volume rebound (55% of 2020 slowdown): production recovery still below the old plan and furlough not contributing anymore

2021-2022 PROFITABILITY TREND

BELOW ADJUSTED EBIT

Restructuring and non recurring costs

Financial income and expenses

Restructuring:

• on-going plant restructuring (Brazil, Italy, Burton MIRS), rightsizing / organization streamlining and early retirement programs
• benefits already visible within competitiveness program
• cash-out ~+20% vs P&L in both '21-22 (previous years accruals)
• 2021 Non Recurring: mainly Retention and other costs not related to the business (e.g. pension fund de-risking actions)
• Cost of Debt 2022E: 2.2% vs. 1.94% in 2020A due to higher interest rate in Emerging Markets (~17% of gross debt)
• Deleveraged benefits dented by:
  • commercial hedging increases due to our top-line growth

  • exposure to high yield currencies

• In line with Feb 2020 Industrial plan

2021-2022 NET CASH FLOW (BEF. DIV.) & NET FIN. POS. TREND

2021 2022 2025

2023-2025 REVENUES TREND

€ billion

2023-2025 ADJ. EBIT TREND

2023-2025 NET CASH FLOW (BEF. DIV.) & NET FIN. POS. TREND

~1.7 ÷ ~1.9 of cum. net cash flow bef. dividends in 2023-25 (~10.5% on sales)

A GOVERNANCE

B SUSTAINABILITY STRATEGY & TARGETS

PIRELLI GOVERNANCE HIGHLIGHTS

Pirelli By-Laws shall be inspired by international best practices

Pirelli Technological know-how never be transferred unless approved by 90% of Pirelli shareholders

Pirelli headquarters shall remain in Milan (Italy) unless approved by 90% of Pirelli shareholders

One-fifth of the Board shall be appointed by minority shareholders

Board made of highly qualified Members with a suitable mix of skills.

Independent directors shall be the majority of the Board

Focus on Diversity value: gender, age, seniority, nationality, educational background and work-experience

Internal committees in line with the best practices, with independent directors having a key role.

Transactions with related parties to be governed by best International practices with a key role of the Committee for Related Parties Transactions

By-laws Board of Directors Shareholders agreement

• The partnership acknowledges: (i) Pirelli is a company specialised in high quality and technology products, (ii) loyalty, professional skills and expertise of the management, key factor for the Company success and business growth
• Pivotal role of the top management to maintain quality standards, to preserve and value Pirelli industrial legacy
• Pirelli Chief Executive Officer to lead top management and ensure Pirelli business culture continuity
• Pirelli Recruiting, Career Plans and incentive schemes to match management and shareholders interests. Incentive plan targets consistent with Pirelli Strategic Plan, and in line with the best practices for listed Companies (e.g.: TSR, sustainability)

Leading role of Marco Tronchetti Provera in the designation of his successor

INSTITUTIONAL

PIRELLI SHAREHOLDER STRUCTURE

Source: Nasdaq, Libro Soci Pirelli, updated on January 2021

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1. Tacticum Investment S.A. (formerly Long-Term Investments Luxembourg S.A.): stake transferred to a third party, subject to a "Repurchase Agreement". Such third party committed to transfer back to Tacticum, when due, the ownership of the same number of Pirelli stocks and to do everything is in its power to exercise the right to vote, subject to the transaction, according to the voting instructions given by Tacticum each time 2. Includes the 7.68% held by ICBC Standard Bank Plc, which is the subject of the repurchase agreement between ICBC and Longmarch Holding S.à.r.l.. On May 13, 2020, Camfin and Longmarch entered into an agreement relating to the potential participation of Longmarch in Pirelli. For more details, please refer to the following link

3. Includes the 4.99% stake held by Alberto Bombassei (also through Brembo S.p.A.)

4. Stake assigned on Sept. 29, 2020 to PFQY Srl, an Italian company wholly owned by Silk Road Fund, following the demerger from Marco Polo International Italy Srl, in line with the shareholders agreement between

Chemchina and SRF at the IPO of Pirelli in 2017. For more information, please refer to the shareholders agreement at the following link

PIRELLI REMUNERATION SYSTEM ALIGNED WITH INDUSTRIAL PLAN

Remuneration structure to be approved by the Shareholders' Meeting (June 15, 2021)

Compensation mix for key management

Fixed component

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No more than 50% of Total Annual Direct Compensation on reaching all objectives at target level

Short term incentive (1/3 of total variable compensation)

• Cash incentive based on key financial objectives: Group adj. EBIT, Net Income, Net Cash Flow before dividends
• Sustainability target: Eco-Safety Performance¹ Revenues
• On / off condition: Group Net Cash Flow before dividends

Long-term incentive plan 2021-23 (2/3 of total variable compensation)

• Cash plan based on 3 key objectives: Relative TSR vs. Tier 1 peers; 2021- 23 Cumulated Group Net Cash Flow before dividends; on-going inclusion in Sustainability Indices (Dow Jones Sustainability World Index ATX Auto Component sector, CDP scoring)
• Rolling plan: every year starting a new 3-year period
• Payment in 2024 (and, for the following years, at the end of each 3-year vesting period)
• All variable components Are capped
• Non-competitive agreement
• Claw-back clauses Key management in both STI and LTI plans

SHORT TERM INCENTIVE PLAN OBJECTIVES

Objective	Weight
Group adjusted EBIT	40%
Group Net Cash Flow1	30%
Net Income	20%
Eco & Safety Performance Revenues	10%

On / off condition: Group Net Cash Flow before Dividends

Bonus at target level defined as percentage of base salary; pay-out cap. is 2x bonus at target level

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2021-2023 LONG-TERM INCENTIVE PLAN HIGHLIGHTS

• Cash, long-term incentive plan aligned with the 2021-2023 Industrial Plan
• Rolling plan, with 3 objectives with different weights

Objective	Weight	Value at target
Relative TSR	40%	Pirelli performance aligned to the average of the peers' performance – Tier 1 (Nokian, Michelin, Continental, Goodyear, Bridgestone)
Group Net Cash Flow1	40%	2021-2023 cumulated Pirelli Cash Flow consistent with the Industrial Plan
Sustainability Index	20%	• Pirelli ranking in Dow Jones Sustainability World Index ATX Auto Component sector (weight 10%) • Pirelli ranking in CDP ranking (weight 10%)

• Rolling plan: every year starting a new three-years period, with relevant targets
• Bonus at target level defined as percentage of base salary; pay-out cap. is ~2.6x bonus at target level, entry level pay-out is 0.75x bonus at target level.

A GOVERNANCE

B SUSTAINABILITY STRATEGY & TARGETS

OUR INTEGRATED MODEL

MULTI-STAKEHOLDER APPROACH

OUR SUSTAINABILITY LEADERSHIP IN NUMBERS

2020 KPIs¹

-54% (vs. 2015) Accident frequency index

• 58% Eco & Safety performance² revenues -9%
  • (vs.2015) Avg. rolling resistance of car tyres
    • 52%³ Electricity from renewable sources
    • (vs.2015) -31%⁴ Plant CO² absolute emissions
  • -22%⁵ Raw materials suppliers CO² absolute (vs.2018) emissions
• -26% (vs.2015) Specific water withdrawal

97% Waste sent to recovery

1. Non exhaustive list; 2. Eco-Safety Performance products, previously known as "Green Performance Products", refer to car tyres that Pirelli produces worldwide and which fall exclusively into classes A, B, C for rolling resistance and wet grip, standardized according to the European labelling parameters. Figure is obtained by weighing Eco & Safety Performance sales on total car tyres sales; 3. Internal assessment based on data from the International Energy Agency (IEA) taking into account the geographical distribution of Pirelli; 4. Impacted by COVID, target for 2020 was -12.5% vs 2015; 5. Impacted by COVID, target for 2020 was - 2.5% vs 2018;

LEADING THE SECTOR IN MAJOR SUSTAINABILITY RANKINGS & INITIATIVES

OUR SUSTAINABILITY LEADERSHIP «IN REAL LIFE TERMS»

Note: Pirelli estimates based on public data; 1 Internal assessment based on data from the International Energy Agency (IEA) taking into account the geographical distribution of Pirelli; 2. Impacted by COVID, target for 2020 was -12.5% vs 2015; 3. Impacted by COVID, target for 2020 was -2.5% vs 2018; 4. Related to Pirelli's direct renewable electricity procurement; 5. Data refer to the 2018-2020 period; 6. Considering 150 kgCO² /tree/lifetime

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GLOBAL SCENARIO @2025-2030

Opportunities & challenges must match the global journey towards UN SDGs

Demographic growth and urbanization Climate change

• Population reaching 8.5 Bn. in 2030¹ (7.8 Bn. in '20) of which 60%² will live in urban areas
• Mega and Smart cities

Future of work Mobility

• Manufacturing productivity gain
• Aging pressure
• Competition on talents
• Social inequality rising
• Remote working
• Inclusivity and well-being in employer propositions

Technological breakthroughs

• Automation, Robotics

• Artificial Intelligence

• Flooding, weather emergencies, displaced people impacting businesses, governments and economies

• Stress on natural resources

• Electric vehicles sales accelerating

• Autonomous vehicles investments not stopped despite the crisis
• Bikes and e-bikes sales booming

Cybersecurity

Cybercrime may cost several trillions dollars by 2030 if not properly tackled

COVID impacts all areas at least for the mid-term

OUR GROUP SUSTAINABILITY STRATEGY AND TARGETS @2025-2030

Eco & safety growth shaped around sustainable development goals is our must to tackle future scenarios in a resilient and competitive way

THE LEVER ACROSS TO REACH SDGS: HUMAN RIGHTS

4

Protect, Respect, Remedy, and ENGAGE

Reporting (Annual Report)

• N° of on-site 3P⁴ audits & risk materiality
• N° of HR⁵ related whistleblowing and measures taken

Addressing Impacts & Tracking Results

• Recovery Plans: actions, deadlines & responsibilities
• On-site 3P⁴ follow-up
• Whistleblowing management & remediation
• Contract closure contractually reserved

OUR BUSINESS CONDUCT: HUMAN RIGHTS IN VALUE CHAIN 5 2

Our Model

ISO 26000¹- ISO 20400¹ - SA 8000² UN Guiding Principles on Business and Human Rights³

Our Policies along the value chain

The Values and Ethical Code, Human Rights Policy (incl. Conflict Minerals), Social Responsibility Policy, Equal Opportunities Statement, Health, Safety and Environment Policy, Privacy Policy, Natural Rubber Sustainability Policy Whistleblowing Procedure

1 Risk and Impact Assessment

• Recurring country materiality update
• Analysis before entering new countries/markets
• Conflict Minerals and Cobalt due diligence

Prevention and Mitigation of Adverse Impacts

Supply chain

• On-boarding HR compliance declaration
• 3P⁴ on-site pre-homologation audit (raw materials)
• Contractual clause
• 3P⁴ on-site Annual Audit Campaign (all suppliers)
• Training

By Pirelli facilities

• Internal Audits
• SA8000 gap analysis in Country Sustainability Plans
• Training

Beyond due diligence: engage to impact

UN Global Compact Action Platform "Decent Work in Global Supply Chains" WBCSD CEO Guide to Human Rights

Global Platform for Sustainable Natural Rubber Support areas: health, education, sport, solidarity and inclusiveness

3

PEOPLE AT THE HEART OF OUR JOURNEY

Our Priorities

Caring

Knowledge

Social Inclusion

Our Ambitions in 2025

2020 2025

2019

OUR LIFE-CYCLE STRATEGY: ECO & SAFETY DESIGN

To minimize impacts on people and planet while maximizing performance

OUR CONSUMER TYRES RAW MATERIALS TARGETS

Eco & Safety Design

Our Eco & Safety strategy starts from raw materials

We push innovation to increase bio-based and recycled materials while decreasing fossils

Targets
	2020A	By 2025	By 2030
Renewable materials1	23%	>40%	>60%
Recycled materials2	1%3	>3%3	>7%3
Fossil based materials	68%	<40%	<30%

Scope: Selected products

Note: Pirelli's Eco & Safety targets refer to consumer tyres and, therefore, should only be compared, where relevant, with consumer tyre targets and not other tyre categories or consolidated production segments; 1. Renewable Materials are natural resources, such as agricultural product or biomass, that, after exploitation, can return to their previous stock levels by natural processes of growth or replenishment(*), on a human time scale(**). Fossil resources and minerals are not renewable resources. Definition based on: (*) OECD glossary definition at https://stats.oecd.org/glossary/detail.asp?ID=2290 ); (**) ISO 17422:2018(en) Plastics — Environmental aspects — General guidelines for their inclusion in standards); 2. Recycled materials are materials derived from the conversion of waste, by means of any recovery operation which returns substances or materials used to fulfil a particular function, in place of virgin raw materials. Recycled materials are no more classified as a waste. Recycled materials do not include materials that are to be used as fuels, as other means to generate energy, or for backfilling operations. Definition based on Dir 2008/98/EC "Waste Framework Directive"; 3. Excluding metals Check out more at www.naturalrubber.pirelli.com ⁸²

OUR RENEWABLE AND RECYCLED MATERIALS INNOVATION

Eco & Safety Design

To achieve our targets, we are introducing new polymers, reinforcements, fillers and chemicals including

	What	Why	When
RICE HUSK SILICA	Silica produced from rice husk, one of the major by-products of rice production It replaces silica from quartz-sand	Avoid new raw material exploitation Recovering a by-product of the food industry Reduce CO emission due to less energy 2 intensive process	Introduction in 2021 in Pirelli materials' portfolio Extensive use in selected categories in following years
LIGNIN	Lignin is sourced from paper pulp and can be used as antioxidant instead of fossil derived products	Most abundant bio-polymer on earth Light weight filler Reduced water depletion and CO 2 emissions vs replaced filler Pirelli patented process and Trademark	Already in use in normal production for cycling application Extension to top sustainable selected Car products in 2022
PYROLYSIS CARBON BLACK	Recovered Carbon Black (rCB) is obtained by pyrolyzed end of life tyres	Favorable CO impact thanks to energy co 2 generation during process through pyrolytic gas Relevant opportunity of end of life tyres recycling (circular economy in closed loop) Cost advantage vs standard fossil based Carbon Black	Introduction in limited application in 2021 Specific cooperation with suppliers to extend the use to a broader range of applications

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OUR MANUFACTURING TARGETS

Eco & Safety Design

There is a urgent need for climate action to reduce greenhouse gas emissions in line with Paris Agreement goals

CO2 abatement is only one among the key sustainability areas in operations

		2020A	By 2025
2 O C	Absolute emissions approved by the SBTi3	-31%1 vs 2015	-25% vs 2015	Carbon Neutrality
	Renewable Electricity	52%	100%	by 2030
eff. s e c r u o s e R	Specific energy cons.	+9.5%2 vs 2019	-10% vs 2019
	Specific water withdrawal	-26% vs 2015	-43% vs 2015
	Waste to recovery	97%	98%
e pl o e P	Accident frequency index	0.22	0.10

1. Reduction favoured by COVID impact, target for 2020 was -12.5% vs 2015; 2. Inefficiency from COVID impact; 3. Science Based Targets initiative, for more details please see the following slide Carlo Furgeri Gilbert, 2016 ⁸⁴

Targets

OUR DECARBONIZATION STRATEGY IN LINE WITH THE PARIS AGREEMENT GOALS

1. Global Warming Potential, data based on Pirelli carbon footprint analysis 2020; 2. logistic is outsourced; 3. Science-based targets are GHG emissions reduction targets in line with the decarbonization level required to meet Paris Agreement goals, limiting global warming to well-below 2°C above pre-industrial levels and pursuing limitation to 1.5°C; 4. End of Life Tyres

line with "well below 2°" scenario

Transversal

ELTs⁴ derived materials

CO² emissions of the car

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OUR FOCUS ON WATER

Excellence in Water Management, every drop counts

WATER STEWARDSHIP

Group water footprint Water use and quality

Sustainable water management

OUR PRODUCT PERFORMANCE TARGETS

Eco & Safety Design

Targets

• Tyre rolling resistance plays a key role in reducing fuel and energy consumption and thus CO² emissions.
• Our Eco and Safety approach consists on a continuous reduction of rolling resistance without any compromise on safety in all driving conditions.

	2020A	By 2025
Rolling Resistance	A/B=39%	A/B ≥ 70%
Wet Grip	A/B=87%	A/B ≥ 90%

87%

Scope: New products (all new labelled IPcodes)

OUR TECHNOLOGY FOR ELECTRIC VEHICLES

Electric vehicles are key to decarbonize mobility and have specific features that our tyres perfectly match

ElectTM is the answer to the specific needs of Electric Vehicles:

• High load capacity for heavier vehicles
• Ultra low Rolling Resistance to improve battery range
• Lower noise

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• Maximum grip for high torque
• Specific development for specific Electric vehicles, following the Perfect Fit Strategy

OUR TYRES FOR AUTONOMOUS VEHICLES

Sensorized tyres can play a key role in road safety, enhancing ADAS and targeting Autonomous Vehicles

Pirelli Cyber TyreTM can provide important safety related real-time data to the vehicle, the driver and the infrastructure:

• High-accuracy Pressure and Temperature monitoring
• Tyre ID for actual tyre fitted information
• Car Load for accurate Battery Range estimation (EVs) and optimal suggested tyre inflation
• Tyre wear indication
• Aquaplaning risk information
• Data distribution through 5G network and V2X¹ technologies

In 2019, Pirelli world first company to develop tyres interacting with the 5G network, providing road conditions information through smart tyres.

In 2021, Pirelli world first company to supply a sensorized tyre as original equipment for McLaren Artura

ECO & SAFETY PERFORMANCE REVENUES¹

Our targets

REVENUES²

ECO & SAFETY

ECO & SAFETY PERFORMANCE

TOTAL RANGE PRODUCTS

PERFORMANCE REVENUES HIGH VALUE PRODUCTS³

1. Eco-Safety Performance products, previously known as "Green Performance Products", refer to car tyres that Pirelli produces worldwide and which fall exclusively into classes A, B, C for rolling resistance and wet grip, standardized according to the European labelling parameters; 2. Figures calculated in % by weighing the value of sales of eco & safety performance products on the total value of Group car sales; 3. Focus on HIGH VALUE products including RIM18+ and «specialties» (Run-Flat, PNCS, Seal Inside with rim ≤ 17)

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PIRELLI CYCLING

Our history and outlook

• 1890: Pirelli produces its first tyre, a bicycle tyre
• 2017: Pirelli re-enters in the cycling business

2020: The turning point

• Bicycle market booming worldwide
• Pirelli in its best shape to take advantage of this scenario: new OE partnership, product range extension
• Racing: Pirelli in 3 top World Tour teams and MTB¹ World Cup teams

2021: Made in Italy production and Urban Strategy revamping

2025: Challenging plan to become a leading player in the industry, targeting 8x volumes (vs 2020)

OUR APPROACH TO ELT¹

Eco & Safety Design

End of life consumer tyres are a precious source of secondary raw materials for a number of industries, importantly valorized in circular economy

Pirelli's Open Innovation Model

Joint Development Agreements with key suppliers to enhance the quality of secondary raw materials deriving from ELTs

from tyre to tyre

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R&D to support innovation in industrial ecosystems to value ELTs derived materials through:

• Dedicated partnerships
• Cooperation with key national and international stakeholders (eg. TIP – WBCSD, ETRMA)²

OUR FOCUS ON 5R¹ CIRCULAR ECONOMY

Re-think: Eco & Safety Design

Design outstanding products, processes and services in terms of performance, environmental impact, health and safety

Refuse	Reduce	Reuse	Recycle
Avoid processes, products, services, materials that can be made redundant Enhance chemicals safety through substitution	Reduce use of resources, especially those not renewable Reduce waste, air, soil and water emissions	Reuse resources and products as much as possible Prevent waste generation and resource depletion	Ensure that ELT2 are recovered or recycled Enhance new solutions to maximize ELT secondary raw materials quality and performance
Anticipation of Raw Material & Chemicals HSE	CO reduction, towards carbon 2 neutrality	Acceleration on plant closed loop water cycles	Increase in use of recycled materials
concerns Health, safety and hygiene	Fossil based / non-renewable materials reduction	Plant-scrapped material	Tyre design to improve recyclability either in open or closed loop
risk prevention	Energy, water, waste reduction	enhancement and reuse
Phase out of single use plastics	Tyre Rolling Resistance reduction	Innovative materials based on non tyre production by-products	R&D to support innovative industrial ecosystems valorizing ELT derived materials

Transversal

SOME ENVIRONMENTAL BENEFITS «IN REAL LIFE TERMS»

Pirelli journey continues: by 2025 we are committed to almost double the environmental benefit delivered since 2015

From 2015 to 2020		From 2020 to 2025	Targets @2025
Electricity from renewable sources	SAVED1 FOSSIL BASED ELECTRICITY = 590 Mln kWh	ELECTRICITY CONSUMED BY 370k EU inhabitants in a year	SAVED1 FOSSIL BASED ELECTRICITY 4.6 Bn kWh =	ELECTRICITY CONSUMED BY 2.9 mln EU inhabitants in a year	100%
Plant CO absolute 2 emissions	EMISSION SAVED 550k tons of CO = 2	CARBON CONSUMED BY 3.6 mln	EMISSION SAVED 925k tons of CO = 2	CARBON CONSUMED BY 6 mln	-25% vs. 2015
Raw materials suppliers CO absolute emissions 2	680k tons of CO = 2	mln2 4.5 Trees over their lifetime3	817k tons of CO = 2	5 mln Trees over their lifetime3	-9% vs. 2018
Specific water withdrawal	WATER SAVED 11 Mln m3 =	WATER AMOUNT 12 hours Tiber river volume of water flow	WATER SAVED 20 Mln m3 =	WATER AMOUNT 1 day Tiber river volume of water flow	-43% vs. 2015
Waste sent to recovery	WATER RECOVERED 16k tons =	WASTE EQUIVALENT OF 31k EU inhabitants in a year	WATER RECOVERED 32k tons =	WASTE EQUIVALENT OF 65k EU inhabitants in a year	98%

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OUR SUPPLY CHAIN: COMPLIANCE, ENGAGEMENT AND SHARED VALUE CREATION Starting with common business values is a pre-requisite for a shared growth

Management model: UN GLOBAL COMPACT – ISO 26000 – SA8000 - ISO 20400¹

Policies designed to embed Suppliers engagement

ESG² fully integrated in PROCUREMENT PROCESS and ERM³

SELECTION + QUALIFICATION

• ESG² on-boarding assessment
• 3 rd Party pre-qualification on on-site audit (high value supplies)
• Cobalt & conflict minerals assessment

CONTRACTUAL STAGE Sustainability & anti-corruption clause

RATING STAGE

• 100% coverage of ESG² Risk suppliers with 3rd Party on-site audit based on yearly risk mapping on all supply base
• Vendor Rating: ESG² KPIs (on-boarding assessment , on site audit performance, CDP⁴ response) weighting on average 20% on the overall score
• Science Based Target to reduce raw material suppliers CO² absolute emissions by 9% in 2025 vs 2018
• CDP⁴ Supply chain: target to reach 90% response rate from raw materials suppliers (84% in 2020)
• Joint development partnership for innovative eco & safety raw materials
• Training sessions on-line and on-site
• Dialogue: the business case is natural rubber sustainability strategy, codeveloped with suppliers, clients, NGOs
• Awarding Suppliers' best practices

Compliance Engagement Shared Value Creation

• Human rights and environmental performances enhanced
• Innovative eco & safe materials
• Enhanced Quality
• Efficiency, productivity & competitive advantage
• Business continuity along the value chain

RESILIENCY & DEVELOPMENT

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Digital tools adopted to support and boost in-depth Market analysis

OUR FOCUS ON NATURAL RUBBER SUSTAINABILITY

Pirelli Policy, Implementation Manual and Roadmap drafted in multi-stakeholder dialogue

The new forward-looking plan will be released end 2021/early 2022 Photo taken by Alessandro Scotti for Pirelli

Check out more at www.naturalrubber.pirelli.com

1. Initiated by WBCSD's TIP Tyre makers, the Global Platform for sustainable Natural Rubber (GPSNR) was launched in 2018 and is today an independent multi-stakeholder initiative pursuing sustainable development of the natural rubber value-chain 96

CORPORATE CITIZENSHIP: OUR KEY AREAS OF ENGAGEMENT

Culture

OUR CULTURE STEMMING FROM OUR LONG HISTORY

A 147-year story made up of people, technology and a pioneering spirit recognized throughout the world, an important historic tradition and a corporate culture that brings together industry and humanity

• Pirelli Foundation preserves the historical heritage of the company and promotes the bond between the Group and culture with a multi-disciplinary approach towards schools, universities and other cultural institutions
• Pirelli HangarBicoccaTM is a non-profit foundation, an institution for producing and promoting contemporary art, one of the largest contiguous exhibition spaces in Europe presenting major solo exhibitions every year by international artists, cultural events and educational projects

Community projects

OUR ROOTS IN COMMUNITIES Supporting personal development and the improvement of living standards

Health, education and sport as a lever of inclusivity, with a particular focus on children; even in 2020 more than 3000 children involved in sporty activities around the world

Road Safety

POWER IS NOTHING WITHOUT CONTROL™

Control is the heart of performance: safety shall be embedded in the way people approach moving

• Donor and Member of the Advisory Board of the United Nations Road Safety Fund
• Partnership with FIA supporting both motorsport and road safety initiatives