PRESS RELEASE CAMFIN S BOARD OF DIRECTORS APPROVES 2011 RESULTS: CAMFIN GROUP:

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1 CAMFIN PRESS RELEASE CAMFIN S BOARD OF DIRECTORS APPROVES 2011 RESULTS: CAMFIN GROUP: CONSOLIDATED NET RESULT POSITIVE 54.4 MILLION EURO, AN ALMOST THREEFOLD INCREASE FROM 18.3 MILLION EURO OF 2010 NET INFLOWS FROM SHAREHOLDINGS POSITIVE 77.3 MILLION EURO, ALMOST DOUBLE COMPARED WITH 39.6 MILLION EURO IN 2010 CONSOLIDATED NET FINANCIAL POSITION NEGATIVE MILLION EURO ( MILLION EURO ON 31 DECEMBER 2010) CAMFIN SPA: PARENT COMPANY NET RESULT POSITIVE 68,0 MILLION EURO, A MARKED IMPROVEMENT FROM 36.6 MILLION EURO IN 2010 Milan, 21 March 2012 Today, the Board of Directors of Camfin SpA reviewed and approved results for the 12 months ended December 31, Group operational performance 2011 In 2011, the Group registered a positive consolidated net result of 54.4 million euro, almost three times the 18.3 million euro of The result benefitted from net income from equity investments which on 31 December 2011 amounted to a positive 77.3 million euro, almost double the 39.6 million euro of The result attributable to Camfin from the shareholding Pirelli & C., consolidated on a net equity basis, was positive million euro, a great increase from 60.2 million euro in 2010 while Prelios had a negative impact 42.9 million euro. The net result also benefitted from a positive accounting effect of 20.9 million euro linked to the removal of Pirelli Eco Technology and Pirelli Ambiente from the scope of consolidation. Shareholders equity of the Group on 31 December 2011 rose to million euro from million euro at the end of This was in part a consequence of inflows linked to the exercise of the warrants. The net financial position at the end of 2011 was negative million euro, an improvement from million euro at end With reference to the performance of the main shareholdings, in 2011 Camfin benefitted from the increased operating result of Pirelli & C., which ended the year with revenues of 5,654.8 million euro, an increase of 16.6% from 4,848.4 million euro in The consolidated operating income after restructuring charges was million euro, compared with million euro in 2010 and with 10.3% margin on revenues compared with 8.4% in The consolidated net result was positive million euro (4.2 million euro in 2010) and includes a non-recurring impact of million euro linked to the booking of deferred taxation as a consequence of charges to Italian fiscal law in Italy.

2 As a result of its further concentration on the premium segment, Pirelli raised its profitability targets for 2012: the company expects an Ebit margin for the current year of at least 12%, compared with the previously indicated range between 11% and 12%, on expected sales of 6.6 billion euro, an increase of 17% from 5.65 billion euro in 2011.Within the framework of the Industrial Plan with vision to 2015, Pirelli expects to generate cash generation of around 3.2 billion euro and proposed the distribution to the market of total dividends over a four year period of around 800 million euro. Prelios - whose results in 2010 only figured in Camfin s consolidated accounts in the last quarter, while in 2011 they were included for the whole year - posted consolidated revenues of on 31 December 2011 of million euro, compared with 254 million euro in The sale of properties totaled 1.8 billion euro, an increase from 1.6 billion at end 2010 and above the target of 1.5 billion euro, with an average margin on sales of circa 5% against book value. The operating result was 5.7 million euro, compared with 41.1 million euro at end The net result attributable to Prelios was negative million euro compared with negative 95.3 million euro in This result was substantially caused by a devaluation of around million euro and restructuring charges of 48.7 million euro. The net financial position at the end of 2011 was negative 488 million euro (-424 million euro at end 2010). For the current year, Prelios confirms what it announced to the market last November: the company expects an operating result from the operations in Italy of between 14 and 18 million euro (12.6 million euro at end 2011) and a negative net financial position of circa 390 million euro. The parent group Camfin SpA On 31 December 2011 the net result for the parent group Camfin SpA was positive 68 million euro, a marked improvement compared with 36.6 million euro at end 2010 thanks to the receipt of dividends from the affiliated Pirelli of 20.6 million euro in 2011 and the partial recovery of value on the shareholding in Pirelli compared with the write-down effected in On the basis of an independent analysis, in accordance with IAS36, this value written down in 2008 from 7.37 euro to 6.05 euro per share, for a total value of million euro was brought to 6.91 euro, with a positive effect on the financial statement of million euro. The evaluation made on Cam Partecipazioni and Prelios resulted in value losses of, respectively, 16.3 million euro and 17.9 million euro. In particular, Prelios s book value was reduced from 0.43 euro per share to 0.29 euro per share. The parent group s net assets amounted to million euro, an increase compared to million euro at end The net financial position was negative million euro ( million euro on 31 December 2010). The Board of Directors will propose to shareholders that the year s profits, net of provisions, be returned to legal reserves. Shareholders meeting The Board of Directors has decided to call a meeting of shareholders on 11 May 2012 (sole call) to approve the 2011 results. Shareholders will also be asked to deliberate with regard the renewal on the Committee of Internal Auditors, whose mandate concludes with the results approval, by list vote and renewal of authorization for acquisition and availability for own shares. In conclusion, shareholders will be called upon to express themselves, via consultative vote, on the remuneration policy. * * * 2

3 The Board of Directors also declared that Camfin adheres to Borsa Italiana s new Code of Self- Regulation which was approved in December 2011 and recognized that Camfin s model of corporate governance has for some time already incorporated the new recommendations. In the report on the company s governance and ownership structures for next, there will be information on the application of the above mentioned recommendations Outlook The Camfin Group will in the course of 2012 benefit from the expected improvements in the results of its main affiliate Pirelli & C. With regard to the parent company, it is expected that 2012 results will conclude with a profit thanks to the expected increase in dividends from Pirelli & C., the Board of which will propose to shareholders the distribution of a dividend per ordinary share of 0.27 euro (0.165 euro the prior year) and of 0.34 euro per savings share (0.229 euro the prior year). Camfin will therefore receive around 33.6 million euro attributable to Camfin an increase of about 60% compared with 20.5 million euro in **** Pursuant to Art. 154-bis, paragraph 2 of the Consolidated Finance Act, Camfin. S.p.A. Financial Reporting Officer Mr. Luca Schinelli declares that all figures contained in this press release correspond to the company's records, books and accounting entries. In this press release, in addition to the financial aggregates provided for as per the IFRS, there are also aggregates that have yet to be provided for under IFRS («Non-GAAP Measures»). These aggregates are presented in order to facilitate a better valuation of the Group s operating performance and are not to be considered as alternatives to those provided for under the IFRS. More in detail, the following «Non-GAAP Measures» are utilized: Net income from investments: this is an aggregate that includes all items reported in the income statement referring to investments not consolidated on a line-by-line basis, precisely dividends, shares in companies valued at net equity, loss of value in available-for-sale financial assets, capital gains/(losses) from the sale of available-for-sale financial assets. This does not include the fair value valuation of available-for-sale financial assets which are recognized directly in net equity. Net financial position: this aggregate represents the gross financial debt less cash and cash equivalents, as well as other interest bearing financial receivables. * * * Camfin press office Tel Camfin Investor Relations Tel ir@gruppocamfin.it 3

4 In order to provide the most complete disclosure possible regarding FY 2011 results, attached please find the abridged consolidated financial statements included in the Directors Report approved by the Board of Directors. Please note that these attachments are not subject to audit by an independed auditing firm and that the latter has yet to complete its examination of the Parent Company s and the consolidated financial statements. Attachments Conto economico consolidato valori in migliaia di euro CONTO ECONOMICO Group's share results in investments carried at equity Dividends received from other investments Impairment of equity investments (295) (302) Fair value adjustment for financial assets and liabilities Trading income Net income (loss) from equity investments Net financial charges (18.524) (17.216) Net overheads (4.256) (3.833) Extraordinary charges and income Pre-tax income (loss) Taxes (392) (291) Net income (loss) Camfin's share of results in investments carried at equity Pirelli & C. S.p.A Prelios S.p.A. (42.907) (9.728) Pirelli & C. Ambiente S.p.A. (3.321) (4.037) Pirelli & C. Eco Technology S.p.A. (9.227) (7.168) Fondo Vivaldi (5.164) (846)

5 Condensed consolidated balance sheet 31/12/ /12/2010 Financial fixed assets Plant, property and equipment Intangible fixed assets Net working capital Shareholders' equity Funds Net financial position Net Financial Position 31/12/ /12/2010 Amounts owed banks and other financiers ( ) (9.079) Non current liabilities with banks and other financiers ( ) ( ) Cash and cash equivalents Financial liabilities booked at fair value in the income statement (8.095) (4.542) Net financial debt ( ) ( ) Reconciliation of net financial position 31/12/ /12/2010 Non current financial assets - - Financial assets booked at fair value in the income statement - - Total net financial position ( ) ( ) 5