CREATING SUSTAINABLE VALUE

Marco Tronchetti ProveraChairman and CEO

CORPORATE SUSTAINABILITY IS A CORE PIRELLILONG TERM STRATEGY

Pirelli’s sustainable approach includes: the whole corporate value chain

all stakeholders’ interests and expectations

to preserve and enhance the value of all Group assets

Shareholders, Investors, Financial

Community

Employees Customers

Suppliers

Environment

Public Authorities

Local Communities

Competitors

Socialdimension

Economicdimension

Environmental dimension

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INTERNATIONAL ACCOMPLISHMENTS

At the forefront in the development of products combining performance and sustainability (“green performance”)

International Awards

2008 2009 2010

36%25%19%

% Green revenuesof total Pirelli sales

Cinturato P7: Max rating from Autobild

for the perfect balance among:

energy efficiency

performance

safety

IndustryLeadership

GreenPerformance

products

For the 4th consecutive year, global sustainability leader in the Auto Parts and Tyre Industry

Well ahead of industry peers in several key sustainability dimensions: Corporate Governance Code of conduct/compliance Quality in the work place Supply chain sustainability Human capital development

Widely present in Social Responsible Investors portfolio

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CORPORATE GOVERNANCE: THREE PILLARS

Key management role and accountability of the Board of Directors1

Effective risk management process2

Long term value creation among the drivers of Top Management remuneration

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BOARD OF DIRECTORS

Vast majority of the 20 Board members are non-executive and independent Directors

2 “Governing” Board committees composed exclusively of independent Directors

Board’s key role:

Addressing strategic guidelines (industrial and financial plans)Monitoring management performance

Overseeing risk management processesManaging conflicts of interest

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1

NEW RISK MANAGEMENT PROCESS

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2

Value driven Focus on risks threatening strategic targets and assets

Fully integratedHorizontal to the organization in the industrial and financial

planning processes

Proactive and responsive Leading to recovery plans and mitigation actions supporting

the annual management plan

“Top down” approachEnabling the Board of Directors and Top Management to

oversee, assess and manage risk in all key business decisions

Alignment of executive remuneration to shareholders’ value creationMore than 70% of Management’s variable compensation linked to the financial

targets of the 2011-2013 industrial plan

Incentive scheme applied to the entire management team

Introduction of innovative retention mechanismsPart of the annual variable compensation retained in a “Bonus bank” to boost

commitment to long term results

LONG TERM INCENTIVE SYSTEMS

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3

THE 2011-13 SUSTAINABILITY PLAN INTEGRATESTHE INDUSTRIAL PLAN IN THREE KEY AREAS

Sustainability Plan 2011-13 Architecture

Socialdimensio

n

Economicdimension

Environmental

dimension

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SOCIAL DIMENSION

Launch of a yearly revised safety program for all plants worldwide

Push Pirelli’s Total Quality approach through:sustainable joint development partnerships extensive third-party independent audits on suppliers’ compliance

Pro-active membership, dialogue and cooperation with: Public Authorities and NGOs* High level institutional bodies

for shared local and international economic, social and

environmental development

......... .........

Health & Safety

HR and organization development

Supply chainmanagement

Localcommunities & international partnerships

* Non Governmental Organizations

Focus on employees’ welfare Increase diversity in management

Pursuing a shared growth

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ENVIRONMENTAL DIMENSION

ProductProduct

Further and aggressive reduction of consumption / emissions

ProcessProcess

Settimo Torinese Plant opening in 2011:PlantsPlants

Towards carbon &

water footprint

Towards carbon &

water footprint

Green procurement rules

Greener & performance across all market segments

- 35%- 35%

- 15%- 15%

~ -15%~ -15%

Water specific consumption Energy specific consumption CO2 specific emissions

2009 2015 2009 2015 2009 2015

17.6 14.1 1.07

m3/ton of finished product GJ/ton of finished product ton/ton of finished product

Taking care of the planetBiomaterials

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2010 2011 2013

47%39%36%% Green revenues

of total Pirelli sales2015

~60%

Green product revenuesGreen cost optimizationLower cost of capital from

de-risking programs

Main Value Leverage

ECONOMIC DIMENSION

Employer of choiceBrand equity increaseTrust from society

Main Intangible Assets

Gaining from Sustainability

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Sustainability Plan 2011-13

Sustainability Plan 2011-13

Industrial Plan 2011-13

Industrial Plan 2011-13

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. 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.

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