DISCLAIMER. Statement

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2 DISCLAIMER This presentation contains statements that constitute forward-looking statements based on Pirelli & C SpA s current expectations and projections about future events and does not constitute an offer or solicitation for the sale, purchase or acquisition of securities of any of the companies mentioned and is directed to professionals of the financial community. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of the activities and situation relating to the Company. \ Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those expressed in or implied by these forward looking statements as a result of various factors, many of which are beyond the ability of Pirelli & C SpA to control or estimate precisely. Consequently it is recommended that they be viewed as indicative only. Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Pirelli & C. SpA undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in Pirelli & C. SpA business or acquisition strategy or to reflect the occurrence of unanticipated events. Statement The Manager mandated to draft corporate accounting documents of Pirelli & C. SpA. Francesco Tanzi, attests as per art.154-bis. comma 2 of the Testo Unico della Finanza (D.Lgs. 58/1998) that all the accounting information contained in this presentation correspond to the documented results, books and accounting of the Company. 1

3 AGENDA KEY MESSAGES PIRELLI & C FINANCIAL REVIEW PIRELLI TYRE 2011 TARGETS UPDATE APPENDIX 2

4 KEY MESSAGES TYRE INDUSTRY Demand remains supportive Price discipline in all Regions Input costs show mixed trends with likely predictable headwinds in 2011 Reaches another profitability peak through an in-progress value strategy Well on track with its project to rebalance profitability by Regions and its efficiency plan Continue to benefit from a faster tax rate reduction Ready to enter the Russian tyre market 3

5 REBALANCING PROFITABILITY AMONG REGIONS Sales by region 1H 011 YoY growth 1H 2010 Ebit % by Region 1H 2011 Actions Europe 42% +23% Mid single digit Double digit Focus on premium and efficiency MEA 9% +5% Mid double digit Small reduction Factories back (Egypt) at full capacity in view of 2H market recovery NAFTA 10% +20% Low single digit Stable Building of Mexican factory well on-track Asia Pacific 6% +20% High single digit Stable Expansion of premium OE homologation portfolio Latin America 33% +16% Mid double digit Stable Increasing medium/heavy truck tyre capacity to make the most of market rebound in 2H WELL ON TRACK WITH 3Y PLAN 4

6 RUSSIA: READY TO GO JV1: Pirelli & Russian Technologies 25.01% Russian Technologies MOSCOW KIROV 50% 24.99% Fleming Family & Partners JV1(NL) + OTHER ASSETS 100% 100% Management Co 100% Kirov Other assets being assessed 7 Mln tyres (today) 4 Mln tyres by 14 Rapidly Expanding Market Expanding macroeconomic context Accelerated growth of Premium Weather Winter High incidence of the Replacement channel Rationale Competition & Custom Barrier Main international peers have limited local manufacturing capacity Dynamic market 20% duties on car & light truck tyres, 15% on truck tyres 5 Pirelli Opportunities Earlier production of Pirelli brand in Russia than in greenfield project Acquisition of an established industrial basis with highly skilled personnel Partnership with RT: support to country risk management and sharing of financial investment

7 RUSSIAN JV1: EARLY FACTS & FIGURES Russian market ml pcs Vehicle car park ml pcs Tyre market segmentation % 44% 47% 49% 52% 2% 3% 4% 5% 6% 54% 7% 19% 20% 23% 25% 26% 27% 28% 32% 29% 35% 31% 35% 55% 53% 49% 46% 42% 39% 55% 53% 49% 43% 37% 33% 010A 011E 012E 013E 014E 015E Foreign Local manufacturers Local manufacturers manufacturers new models old models 010A 011E 012E 013E 014E 015E Classe A Classe B Classe C Source: April 2011 Boston Consulting Group Main Market targets JV1 market share of > 20% ~50% Pirelli brand of total JV1 production by 2014 (11Mln tyres) Main P&L figures Revenues (Mln ) EBIT % 2012 ~ 300 Mid single digit 2014 >500 Double digit (since 2013) JV1 Financial commitments: (Assets purchasing price) 55 Mln by Mln by 12 CAPEX Source: Company estimates 200 Mln (Upgrade to Pirelli std & capacity increase) 6

8 KEEPING ON CREATING BRAND VALUE: F1 Pirelli on television Results & Returns after the first 9 GPs AUSTRALIA MALAYSIA CHINA TURKEY BARCELONA MONACO MONTREAL VALENCIA SILVERSTONE 04h 16mm 20ss 02h 11mm 30ss 04h 37mm 30ss 01h 41mm 30ss 01h 40mm 30ss 03h 23mm 30ss 03h 58mm 30ss 04h 16mm 30ss 02h 16mm 40ss Unrivalled global brand exposure = ~200 /mln advertising & media value equivalent* Premium Sales 1H 2011: +33% yoy Strong involvement of dealer chain: >400 dealers attending GPs and company presentations TOTAL BRAND EXPOSURE 28h 37mm 05ss Unique inputs from Formula 1 to R&D to innovate tech for premium tyres *Comulative Brand exposure by circuit advertising in the official FOM tv Feed, just considering ten key markets (Brazil, China, France, Germany, Italy, Russia, Spain, Turkey, UK and USA) 7

9 AGENDA KEY MESSAGES PIRELLI & C FINANCIAL REVIEW PIRELLI TYRE 2011 TARGETS UPDATE APPENDIX 8

10 PIRELLI KEY FINANCIAL RESULTS /mln 1H11 1H10* D YoY 2Q11 2Q10* D YoY 2Q results key drivers Revenues Organic growth** EBITDA before Restr. Costs Margin 2, % 12.9% 2, % +18.4% +34.6% 1, % 13.2% 1, % +16.2% +27.1% Value strategy in progress: price momentum and successful premium product sales drove Tyre top line performance EBIT before Restr. Costs Margin Restructuring Costs % 8.4% (7.7) (7.9) +49.0% % 8.9% (4.5) (5.3) +38.0% QoQ profitability improvement despite higher raw material impact EBIT PBT Margin Tax Rate Income before disc. Operations (Adj. Net Income) Attributable Net Income % 8.1% % 47.7% (165.5) +51.2% +2.3 p.p % p.p % 8.5% % 49.8% (204.7) +40.7% +2.1 p.p % p.p. Further tax rate optimization: fully in line with 2011FY target (tax rate <37%) +92% net income yoy increase on a comparable base Investments*** Net Debt (*) 2010 figures restated excluding Pirelli RE and Pirelli Broadband vs 1Q QoQ limited net debt increase despite higher investments and dividend payment (83 /mln) (**) Homogeneous terms variations, excluding exchange rate effects (***) Tangible and intangible investments 9

11 PIRELLI NET INCOME 1H11 VS 1H (4.1) (17.2) 77.0 Net Income Adjusted (income before discontinued operations) 1H10 DEBIT D Results from particip. D Financial income/charges D Taxes Net Income 1H11 10

12 PIRELLI 1H11 NET FINANCIAL POSITION /mln EBIT before restr. costs Dep/Am: Investments*: D NWC & others: (96.9) (313.5) 2.8 (15.3) EBIT before restr. costs Dep/Am: Investments*: D NWC & others: (137.2) (3.5) (88.4) Disposal of Cyoptics Disposal of Banca Leonardo Dividends Exch. Rate & Others (0.7) (7.5) FY10 Operating Cash Flow Fin. Inc./Expen. & taxes Cash out Restr. Costs Others 1Q11 Operating Cash Flow Fin. Inc./Expen. & taxes Cash out Restr. Costs Others Dividends 1H11 (*)Tangible and intangible investments 11

13 PIRELLI DEBT STRUCTURE AS OF JUNE 30, 2011 Net Financial Position Gross Debt Maturity /mln Committed Line Drawdown 1, Bond Other Borrowings New 5 year bond 219 Gross Debt Fin. Assets* Net Fin. position Gross Debt maturity as of Jun. 30, % 10.4% 6.1% 8.4% 14.5% 45.0% & beyond 1H11 New revolving facility 1,110 Total Committed Lines Not Drawn Total 1, (*)Financial receivables, cash and cash equivalents 12

14 AGENDA KEY MESSAGES PIRELLI & C FINANCIAL REVIEW PIRELLI TYRE 2011 TARGETS UPDATE APPENDIX 13

15 PIRELLI TYRE KEY RESULTS /mln 1Q11 YoY% 2Q11 YoY% 1H11 YoY% Revenues EBITDA (before restruct. costs) margin 1, % +24.7% +43.1% +1.9p.p. 1, % +13.3% +23.0% +1.3p.p. 2, % +18.7% +32.1% +1.6p.p. Double-digit top line growth driven by Pirelli s strategic priorities: Consumer Premium and EM Industrial sales. EBIT (before restruct.costs) % % % margin 11.2% +2.4 p.p. 12.0% +1.5 p.p. 11.6% +1.9p.p. EBIT (after restruct.costs) margin % 11.0% +2.4p.p % 11.6% +1.6p.p % 11.3% +2.0 p.p. Top profitability level as a result of both value strategy and cost efficiencies Net Income % % % 1Q11 2Q11 1H11 Revenue drivers D Price/Mix D Volume D Rev. (before exch. rate impact) D Exch. Rate +15.9% +6.1% +22.0% +2.7% +15.8% +1.2% +17.0% -3.7% +15.9% +3.5% +19.4% -0.7% Significant price/mix improvement offsetting raw materials: confirmed strong track record in the Industry 14

16 1H Q 2011 PIRELLI TYRE 1H11 OPERATING PERFORMANCE /mln (145.5) (5.5) Raw materials: (129.7) Labour / energy / other: (15.8) EBIT 2Q10 (before restr.costs) Price mix Volume Cost of inputs Efficiencies Depreciation/ other costs Exchange rate EBIT 2Q11 (before restr.costs) (240.7) (18.9) (3.0) Raw materials: (211.5) Labour / energy / other: (29.2) EBIT 1H10 (before restr.costs) Price mix Volume Cost of inputs Efficiencies Depreciation/ other costs Exchange rate EBIT 1H11 (before restr.costs) 15

17 PIRELLI TYRE 1H11 NET FINANCIAL POSITION /mln 1, ,359.0 (89. 1) (18.8) EBIT before restr. costs Dep/Am: Investments*: D NWC & others: (94.5) (291.6) EBIT before restr. costs Dep/Am: Investments*: D NWC & others: (133.8) 4.5 (500.0) D NFP: D NFP: FY10 Operating Cash Flow Fin. Inc. /Expen. & taxes Cash out Restr. Costs Others 1Q11 Operating Cash Flow Fin. Inc. /Expen. & taxes Cash out Restr. Costs Others Dividends Capital Increase 1H11 (*) Tangible and intangible investments 16

18 Mercosur North America Europe CONSUMER BUSINESS: KEY MARKET TRENDS % YoY 2Q10 3Q10 4Q10 1Q11 2Q11 +11% +5% +12% +3% OE* -2% +11% +6% +7% +8% +1% Replacement** +74% +26% +6% +16% +2% OE Replacement +8% +0% +1% +7% -5% +12% +11% +6% +8% +7% OE +14% +10% +4% Replacement*** -2% -1% (*)Turkey and Russia included (**)Turkey included (***)Non-pool members imports not included Sources: major external data provider for each region and Pirelli estimates 17

19 CONSUMER BUSINESS: PIRELLI PERFORMANCE /mln 1Q11 YoY% 2Q11 YoY% 1H11 YoY% Revenues EBITDA (before restruct. costs) margin % +25.9% +51.5% +2.7p.p % +14.7% +38.6% +3.1 p.p. 1, % +20.1% +44.6% +2.9 p.p. Further increase on Premium: +30% yoy revenues growth in 2Q with mkt share increase in Europe EBIT (before restruct.costs) margin % +72.2% +3.3 p.p % +51.8% +3.3 p.p % +61.0% +3.3 p.p. Lower sales of standard tyres in favour of pre-production for the winter season EBIT (after restruct.costs) % % % margin 11.9% +3.3p.p. 13.0% +3.4p.p. 12.4% +3.3p.p. Record profitability 1Q11 2Q11 1H11 Revenue drivers D Price/Mix D Volume +14.6% +9.0% +16.2% +2.6% +15.4% +5.7% Price increase successfully implemented across regions D Rev. (before exch. rate impact) +23.6% +18.8% +21.1% D Exch. Rate +2.3% -4.1% -1.0% 18

20 Mercosur Europe* INDUSTRIAL BUSINESS: KEY MARKET TRENDS % YoY 2Q10 3Q10 4Q10 1Q11 2Q11 +67% +84% +90% +77% +42% OE +19% +15% +9% +16% +11% Replacement +61% +49% +22% +1% +4% OE +19% +23% +22% +12% +2% Replacement** (*)Turkey included and Russia excluded (**)Non-pool members imports not included Sources: major external data provider for each region and Pirelli estimates 19

21 INDUSTRIAL BUSINESS: PIRELLI PERFORMANCE /mln 1Q11 YoY% 2Q11 YoY% 1H11 YoY% Revenues EBITDA (before restruct. costs) % +21.0% % -11.6% % +2.2% Revenues growth sustained by a firm price discipline margin 12.2% -0.1p.p % -2.8p.p. 11.9% -1.6 p.p. EBIT (before restruct.costs) margin EBIT (after restruct.costs) % 8.9% +0.2p.p % % 8.6% -2.6p.p % % 8.8% -1.2 p.p % Profitability trend in 2Q discounts impact of natural rubber peak price on COGS margin 8.9% +0.2p.p. 8.6% -2.3p.p. 8.7% -1.2 p.p. 1Q11 2Q10 1H11 Revenue drivers D Price/Mix +19.0% +14.9% +16.8% Volumes trends reflect: Rebuilding inventories in Egypt D Volume D Rev. (before exch. rate impact) D Exch. Rate -0.7% +18.3% +3.6% -1.9% +13.0% -3.0% -1.4% +15.4% +0.1% Market slowdown in China OE and Repl. markets Progressive reduction of non-radial truck tyre sales in LatAm 20

22 FOCUS ON BRAZIL Economic scenario* Tyre Market Outlook Real GDP (bn real) Growth at a more sustainable rate 7.5% 5.5% 4.4% (mln/pieces) Export Import Mega events will maintain momentum in the medium term: 2014 World cup: 32 $ bln investments 2016 Olimpic Games: 14 $ bln inv. *Source: IHS Global Insight, June 2011 Pirelli Strategy New Mexican factory designed to free up premium capacity in Brazil Focus on premium consumer segments in both OE and Replacement Channels Drive Technology evolution in the industrial segments by increasing radial capacity Domestic Market Domestic Production Actions tyre trade unbalance confirmed in 2011 while waiting capacity increase from major players Mix improvement: 1H 2011 launch of Green Performance tyres, Scorpion MTR (SUV tyres) 2H more products coming No. 1 local OEM strategic supplier >80% of M/H Truck radial production in 2011 M/H Radial truck tyres capacity increase in Gravataì (+10% in 2H 2011, +10% in 2012) 21

23 AGENDA KEY MESSAGES PIRELLI & C FINANCIAL REVIEW PIRELLI TYRE 2011 TARGETS UPDATE APPENDIX 22

24 PIRELLI 2011 TARGETS UPDATE /bln 2011 Targets (May 4, 2011) 2011 Targets Update Revenues Tyre Volumes Price/mix >5.85 >5.80 >+6% ~+15% Confirmed Confirmed > +5% > +16% EBIT % Tyre Raw Material Headwind 8.5% 9.5% 9% 10% % 10% 10% 11% 540 Tax rate Capex <37% >0.5 Confirmed Confirmed NFP ~0.7 * Confirmed *Not including Russian JV1 23

25 RAW MATERIALS IMPACT /mln (70) Average Cost of Goods Sold Old Guidance New Guidance Natural Rubber TSR 20 ($/ton) 4,900 4,600 Oil ($/barrell) Brent Old Guidance (March 8, 2011) Natural Rubber Synthetic Rubber & Others 2011 New Guidance (July 27, 2011) 24

26 AGENDA KEY MESSAGES PIRELLI & C FINANCIAL REVIEW PIRELLI TYRE 2011 TARGETS UPDATE APPENDIX 25

27 PIRELLI GROUP 1H11 RESULTS Profit & Loss and Net Financial Position by Business Unit /mln Pirelli Tyre Other Pirelli & C. Cons. 1H11 1H10 1H11 1H10 1H11 1H10 Sales % 2, , % , , % EBITDA before Restruct Costs % on sales % 13.9% (17.0) (18.7) % 12.9% EBIT before Restruct Costs % on sales Restructuring Costs % 9.7% (7.7) (7.9) (22.4) (25.4) % 8.4% (7.7) (7.9) EBIT % on sales Results from equity partecipations Financial Income/Charges % 9.3% (0.7) 0.4 (47.0) (38.7) (22.4) (25.4) 1.6 (4.4) 2.3 (1.9) % 8.1% 0.9 (4.0) (44.7) (40.6) EBT Fiscal Charges (102.0) (68.6) (18.5) (31.7) 14.5 (1.7) (87.5) (70.3) Net Result before disc. Op. Discontinued Operations Net Income (4.0) (33.4) 0.0 (252.6) (4.0) (286.0) (252.6) (175.6) Attributable Net Income (165.5) Net Financial Position ,212.9 (185.0) (553.5)

28 PIRELLI GROUP 2Q11 RESULTS Profit & Loss and Net Financial Position by Business Unit /mln Pirelli Tyre Other Pirelli & C. Cons. 2Q11 2Q10 2Q11 2Q10 2Q11 2Q10 Sales % 1, , % , , % EBITDA before Restruct Costs % on sales % 14.6% (10.9) (14.2) % 13.2% EBIT before Restruct Costs % on sales Restructuring Costs % 10.5% (4.5) (5.3) (13.3) (17.5) % 8.9% (4.5) (5.3) EBIT % on sales Results from equity partecipations Financial Income/Charges % 10.0% (0.4) 0.2 (30.4) (22.3) (13.3) (17.5) 0.5 (1.3) 0.5 (0.7) % 8.5% 0.1 (1.1) (29.9) (23.0) EBT Fiscal Charges (55.0) (39.4) (12.3) (19.5) 15.4 (0.5) (39.6) (39.9) Net Result before disc. Op. Discontinued Operations Net Income (20.0) 0.0 (254.8) 3.1 (274.8) (254.8) 77.4 (214.5) Attributable Net Income 78.9 (204.7) Net Financial Position ,212.9 (185.0) (553.5)

29 PIRELLI BALANCE SHEET /mln 1H11 FY10 Fixed Assets 3,203.0 Net Working Capital Net Invested Capital 3, , ,280.8 % Net Invested Capital Total Net Equity 2,047.2 Provisions , H11 FY10 Net Financial Position Pirelli Tyre 86.3% 84.7% Total 3, ,280.8 Other 13.7% 15.3% Attributable Net Equity 2, ,990.8 Equity per Share (euro) ,080 28

30 PIRELLI GROUP CASH FLOW /mln 1Q11 2Q11 1H11 1Q10 2Q10 EBIT before restructuring costs Depreciation Net investments (96.9) (137.2) (234.1) Working capital/other variations (313.5) 18.1 (295.4) OPERATING CASH FLOW (207.0) 88.4 (118.6) Financial income (expenses) (14.8) (29.9) (44.7) Tax charges (47.9) (39.6) (87.5) NET OPERATING CASH FLOW (269.7) 18.9 (250.8) Financial investments/divestitures Dividends paid (0.7) (82.8) (83.5) Cash-out for restructuring (2.8) (5.7) (8.5) PBS Net Cash Flow PRE Net Cash Flow Exchange rate differentials/others (8.4) 3.5 (4.9) (50.2) (143.2) (51.5) (17.6) (30.4) (99.5) - - (34.0) (12.1) (14.0) (85.2) (23.0) (39.9) (85.1) (9.9) 0.7 (6.5) 24.9 NET CASH FLOW (257.2) (66.1) (323.3) (149.6) (18.5) 29

31 PIRELLI GROUP: 1H11 NET FINANCIAL POSITION BY BUSINESS /mln Tyre Other businesses Corporate Pirelli Group Jun. 11 Dec. 10 Jun. 11 Dec. 10 Jun. 11 Dec. 10 Jun. 11 Dec. 10 Gross Debt 1, , , ,147.0 to Corporate Financial receivables (114.7) (98.3) (5.1) (4.8) (932.3) (806.7) (261.0) (236.9) to Prelios (150.0) (140.4) (150.0) (140.4) Cash and cash equivalents (312.7) (405.4) (3.6) (6.6) (44.3) (42.5) (360.6) (454.5) Net Financial Position , (268.2) (726.2)

32 1H11 PIRELLI TYRE MIX SALES BY BUSINESS SALES BY SEGMENT Consumer 70% Car 61% Motorbike 9% Industrial 30% Truck 28% Steelcord & others 2% SALES BY CHANNEL SALES BY REGION Replacement 74% Latin America 33% Nafta 10% Asia Pacific 6% MEA 9% OE 26% Europe 42% 31

33 1H 2011 PIRELLI PEOPLE HEADCOUNT PEOPLE BY REGION 29,573 31,643 Europe 37% Nafta 1% Latin America 42% Dec 2010 June 2011 Asia Pacific 9% MEA 12% PEOPLE BY CONTRACT PEOPLE BY CLUSTER Permanents 89% Workers 81% Temps & Agency 11% Management 1% Employees 18%

34 PIRELLI TYRE: 19 MANUFACTURING PLANTS IN 11 COUNTRIES (AS OF JUNE 2011) Burton Carlisle U.K. Car Car Italy Bollate (MI) Settimo Torinese Figline Valdamo Car Car/Truck Steelcord Breuberg Merzig Germany Car/Moto Steelcord Turkey U.S.A Izmit Car/Truck Steelcord Rome Car Romania Slatina Car/Steelcord Guacara Venezuela Car China Brazil Yanzhou Car/Truck Campinas Feira de Santana Santo André Gravatai Sumaré Car Car/Truck Truck/Agro Moto/Truck Steelcord Merlo Argentina Car Alexandria Egypt Truck 33

35 RAW MATERIALS RAW MATERIALS PRICE TREND 5, , , , , , ,330 1,523 Brent Oil (in usd/bbl) Natural Rubber (in usd/tons) 69 1,837 2, , ,096 3, ,254 3, , Natural Rubber: Sicom Brent: In Italic Year Average 1H 2011 MIX (BASED ON PURCHASING COST) Raw mat. costs on sales: 40% Natural Rubber 37% (+3 pp yoy) Synth. Rubber 24% (+2 pp yoy) Carbon black 11% (0 pp yoy) Steelcord 7% (-2 pp yoy) Textiles 9% (-1 pp yoy) Chemicals 12% (-2pp yoy) 34