BOARD PROPOSES EXTRAORDINARY DIVIDEND THANKS TO POSITIVE RESULTS AND DECREASED FINANCIAL LEVERAGE

TOTAL DIVIDEND OF 0.34 EURO PER SHARE OF WHICH 0.10 EURO EXTRAORDINARY

***

IN 2025 REVENUES SAW ORGANIC GROWTH OF 4.2%, WITH ADJUSTED EBIT MARGIN RISING TO 16% NOTWITHSTANDING IMPACT OF FOREX, TARIFFS AND INPUT COST INFLATION

NET FINANCIAL POSITION FALLS TO -1.1 BILLION EURO (TARGET ~-1.6 BILLION), NET FINANCIAL POSITION/ADJUSTED EBITDA RATIO AT 0.71 TIMES (2025 TARGET ~1 TIME)

 IN 2025 RECOGNIZED AS SECTOR LEADER IN KEY FINANCIAL SUSTAINABILITY INDICES

***

Full-year 2025

-        Revenues: 6,776.2 million euro (at higher end of 2025 target of “between 6.7 and ~6.8 billion”), with organic growth of +4.2% excluding forex effect (-3.8%) and deconsolidation of Däckia (-0.4%); including these effects, revenues were stable compared with 6,773.3 million euro in 2024;

-        Further strengthening of High Value (79% of sales compared with 76% in 2024);

-        Price/Mix: +3.8% thanks especially to the ongoing improvement of product and region mix (2025 target between ~+3.5% / ~+4%);

-        Adjusted Ebit: +2.0% to 1,081.4 million euro thanks to the efficacy of internal levers;

-        Adjusted Ebit Margin rises to 16% (in line with 2025 target of ~16%), compared with 15.7% in 2024;

-        Net profit: +5.9% to 530.7 million euro (501.1 million euro in 2024);

-        Net cash flow before dividends: +1,073.8 million euro (+533.9 million in 2024); +577.3 million euro (2025 target ~550 million euro) excluding impact of bond loan conversion of 496.5 million euro;

-        Net Financial Position: -1,102 million euro (-1,925.8 milion on 31 December 2024), better than target of ~ -1.6 billion euro. NFP/Adjusted Ebitda ratio at 0.71 times (better than 2025 target of ~1 time);

-        In 2025 recognized as sector leader in principle sustainable finance indices

Fourth quarter 2025

-        Revenues: 1,581 million euro, with organic growth of 6.1% excluding the forex effect (-5.3%) and the deconsolidation of Däckia (-1.3%); total variation -0.5% compared with 1,588.8 million euro in fourth quarter 2024;

-        Price/Mix: +3.7% supported by the continuous improvement of the product mix and despite a negative channel mix;

-        Adjusted Ebit: 245.9 million euro, stable compared with 244.6 million euro in fourth quarter 2024 thanks to the contribution of internal levers;

-        Adjusted Ebit Margin rises to 15.6% from 15.4% in fourth quarter 2024;

-        Net profit: 130.1 million euro (130.0 million euro in 2024);

-        Net cash flow before dividends: +1,436.3 million euro, +939.8 million euro excluding the impact of the conversion of the bond loan of 496.5 million euro (+890.7 million in fourth quarter 2024)

***

2026 TARGETS

-        Revenues seen between ~6.7 and ~6.9 billion euro, with an Adjusted Ebit Margin of ~16%, a slight improvement compared with 2025

-        Net cash flow before dividends ~0.50 billion euro

-        Net financial position at end 2026 of ~1.2 billion euro, with a NFP/Adjusted Ebitda ratio of ~0.75 times

***

Milan, 25 February 2026 – The Board of Directors of Pirelli & C. Spa met today and approved preliminary and unaudited results to 31 December 2025 and 2026 budget.

In a challenging context, characterized by geopolitical and commercial tensions and marked forex volatility, Pirelli closed 2025 with better results compared with the previous year and in line with the targets announced to the market, confirming the efficacy of the business model and key programs of the Industrial Plan.

Published on: 25 February 2026, 17:54 CET

RIYADH/MILAN – October 26, 2023: The Public Investment Fund (PIF) and Pirelli Tyre S.P.A (Pirelli), a leading global tire manufacturer, have announced today the signing of a joint venture (JV) agreement to build a tire manufacturing facility in Saudi Arabia. PIF will hold a 75% stake in the new JV with Pirelli holding the remaining 25% and acting as a strategic technology partner to support the development of the project by providing technical and commercial assistance.

The plant is expected to start production in 2026. The JV will manufacture high-quality tires for passenger vehicles, under the Pirelli brand, and will also manufacture and market tires under a new local brand targeting the domestic and regional market. The total investment in the JV is around $550 million. For Pirelli, the project will have a neutral impact on the company’s deleveraging targets to 2025.

Saudi Arabia is set to become a global automotive manufacturing hub by 2030. PIF has established a world-class automobile sector in Saudi Arabia by driving transformation and boosting manufacturing capabilities, infrastructure and supply chains in Saudi Arabia and beyond. Among its major investments in the sector, PIF and Hyundai Motor Company recently announced a landmark $500 million JV to establish a state-of-the-art automotive manufacturing plant in Saudi Arabia. And the launch of Tasaru, the National Automotive and Mobility Investment Company, which is dedicated to localizing automotive supply chains and manufacturing capabilities.

PIF has also made other significant investments in the future of mobility, including establishing Ceer, Saudi Arabia’s first national electric vehicle brand, as well as investing in Lucid Motors, which recently officially opened its first international manufacturing plant in Saudi Arabia.

As a leading global tire manufacturer, Pirelli will offer technical support and expertise to design, develop and operate the plant. Through this JV, PIF and Pirelli are committed to creating a national and regional champion that localizes manufacturing capabilities for an important segment in the automotive industry, while enabling upstream and downstream activities across the value chain.

The plant is expected to generate an annual production capacity of 3.5 million units, bringing additional economic benefits and complemented by a commitment to environmental sustainability. The JV will also serve as an important anchor to attract further investment to Saudi Arabia.

In line with its local-for-local strategy, Pirelli, through the JV, will become the first tier 1 tire maker to directly source production in Saudi Arabia.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Through this Joint Venture with Pirelli, PIF is building production capabilities in the automotive and mobility value chain and enhance opportunities for private sector contribution. This collaboration marks another pivotal milestone in our journey to diversify the economy, enhance sustainability and localize manufacturing capabilities in Saudi Arabia”.

Marco Tronchetti Provera, Executive Vice Chairman of Pirelli, said: “Accessing local production in Saudi Arabia, one of the most promising markets today, in line with our positioning in High Value and electric, represents a great opportunity for Pirelli. Capturing it alongside a partner like PIF with its plans to enable the automotive sector.”

The closing of the transaction is subject to obtaining approvals from the relevant authorities and satisfying certain conditions under the agreement.

- ENDS -

ABOUT PIF

The Public Investment Fund (PIF) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz, Prime Minister, Chairman of the Council of Economic and Development Affairs, and Chairman of the Public Investment Fund. PIF a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, PIF has established 90 companies. PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in Saudi Arabia and globally. PIF's strategy, as set out in the PIF Program 2021-2025 - one of the Vision 2030 realization programs - aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy domestically. As the investment arm Saudi Arabia, PIF looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for Saudi Arabia, in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.

More information about PIF can be found at: www.pif.gov.sa

Media Contact: media@pif.gov.sa  

ABOUT Pirelli

Established in 1872, Pirelli is among the world’s leading tyre producers. It is the only pure consumer tyre company that includes car, motorbike, and bicycle tyres as well as associated services.

Pirelli has a distinct positioning in high value tyres, characterised by an advanced technology with about 4,000 homologations obtained, thanks to partnerships with the most prestigious car manufacturers in the world. In order to achieve the highest levels of performance, safety and containment of environmental impact, Pirelli has always been strongly committed to research and development, in which it invested more than 5% of revenue from high-value products in 2022.

Involved in motorsport since 1907, Pirelli has been the exclusive official tyre partner of the Formula 1™ World Championship since 2011 and has renewed the agreement until 2027.

Pirelli's commitment to the creation of sustainable value, a characteristic of the Company's responsible management and its economic, social and environmental performances has resulted in its inclusion in some of the world’s most prestigious sustainability stock market indices such as the Dow Jones World and Europe Sustainability Indices and Global Compact LEAD of the United Nations.

Pirelli Press Office – Tel. +39 02 64424270 – pressoffice@pirelli.com   

Pirelli Investor Relations  – Tel. +39 02 64422949 – ir@pirelli.com

www.pirelli.com  

Published on: 26 October 2023, 11:43 CET

The estimated tax benefit for the 3-year period 2020-2022 is about 40 million euro, with a similar estimated positive impact at the level of net profit and will be booked in the accounts of the year underway which will also take into account the quantification, now being determined, for the year 2023. The effect on cash flow will be distributed between 2023 and 2025 without any significant impact on the 2023 cash flow. Therefore, the cash flow target for 2023 remains unchanged.

The Patent Box is a preferential taxation scheme that benefits companies that directly use, or use through concessions to utilize, software, industrial patents, designs and models as well as processes protected by copyright, and formulae and information relating to experience acquired in the industrial, commercial and scientific fields that can be protected under law. 

Published on: 3 August 2023, 18:47 CET

The Board of Directors will also be called upon to appoint Marco Tronchetti Provera as Executive Vice Chairman, delegating to him powers related to general strategies, supervision of the implementation of the business plan, and powers related to communication, corporate affairs and internal controls, as well as relations with shareholders and institutions.

The Chief Executive Officer will have the power, inter alia - in coordination with the Executive Vice Chairman - to propose to the Board of Directors the business plan, the annual budget, and any resolutions concerning industrial partnerships or strategic joint ventures.

The Chief Executive Officer and Corporate General Manager will be delegated with the ordinary management of Pirelli and - under the supervision of the Executive Vice Chairman - the power to implement the business plan and budget.

The newly constituted Corporate General Management structure will head the current functions of Finance and Services, Sustainability and Future Mobility, Chief Legal Officer, Chief Digital Officer and Pirelli Hangar Bicocca.

The Administration Planning and Controlling function and Manager responsible for the preparation of the corporate financial documents as well as the Chief Human Resources Officer will report to the Chief Executive Officer.

Published on: 28 June 2023, 18:15 CET

The Executive Vice Chairman and Chief Executive Officer, Marco Tronchetti Provera, as a consequence of the organizational changes that will be adopted, will propose to the board meeting already scheduled for 11 November the nomination of the new manager responsible for the preparation of the company’s financial documents, in accordance with current legislation. Mr. Tanzi does not own ordinary shares in the company.

Pirelli wishes to thank Mr. Tanzi for his contribution to the company over his many years of service.

Published on: 7 September 2021, 19:20 CET

The proposal – shared with the Chairman of the Board of Directors Ning Gaoning and the Nominations and Succession Committee and of which Board Members have been informed – also aims to strengthen the management team in consideration of the future succession pathway in line with the Procedure already adopted by the company and foresees that Deputy-CEO may also contribute to the course of enhancement of the international management team.

Informed of this proposal, the Board Member Angelos Papadimitriou, whose confirmation was included in the agenda of today’s shareholders’ meeting, communicated the he would withdraw his candidacy as a board member, in order to allow the implementation of the above proposal.

The Executive Vice Chairman and CEO will therefore propose to the Board of Directors Meeting of March 31, 2021, to invite the Shareholders’ Meeting scheduled for June 15, 2021, to nominate Giorgio Luca Bruno as a board member and will also propose that once nominated as a Board Member he will assume the role of Deputy-CEO. Until then Giorgio Luca Bruno will continue to support the industrial activities of Prometeon Tyre Group, of which he is today Chief Executive Officer.

Following the assumption of the role of Deputy-CEO by Giorgio Luca Bruno, the macro-organizational structure of Pirelli, foresees that the Executive Deputy Chairman and CEO, who will be responsible for strategic and industrial guidance, will continue to head Strategic Planning & Controlling; Investor Relations, Competitive, Business Insight, Micromobility Solutions; Communication and Brand Image; Institutional Affairs and Culture; Corporate Affairs, Compliance, Audit and Company Secretary.

The Deputy-CEO will be given all the necessary executive levers, as well as staff areas not directly reporting to the Executive Vice Chairman, and the report of the General Manager Operations, Andrea Casaluci, who will continue to head all the business lines and regions. 

Giorgio Bruno has developed significant managerial experience in complex financial and industrial contexts, including the tyre industry. After obtaining a degree in Company Economics from Milan’s Bocconi University he began his career in the IFIL Group (an Agnelli family holding company) where he handled the group’s diversified activities, in particular financial services. In 1991 he entered Camfin where he managed investments in various sectors, Pirelli first among them, and then those in the distribution of petroleum products, energy services, renewable energy and the new technologies applied to these. In Camfin he also had the opportunity to take significant operational roles in some units. In 2008, he entered directly into Pirelli’s operational structure with responsibility for corporate development and diversified businesses, a role in which he favoured the entrance of new shareholders and the revision of the group’s financial structure. In 2013, he became Executive Chairman of Prelios, managing its turnaround and subsequent sale to a fund. More recently, he dealt with the process of separating Pirelli’s Industrial business, which became an autonomous company named Prometeon Tyre Group (PTG), part of the ChemChina group. In 2017, he became Chairman of PTG and in January 2018 he also became its CEO, guiding the company’s turnaround and managing to achieve and maintain positive results even during the pandemic.

Published on: 24 March 2021, 13:24 CET

In particular, Mr. Papadimitriou shared the intention that he wishes to evaluate a professional pathway with entrepreneurial elements, in line with his experience gained over the years, and expressed his willingness to continue to support Pirelli by maintaining his role as a board member and member of the Strategies Committee.

The Board of Directors approved the proposal of the Executive Vice Chairman and CEO to entrust ad interim to the same Executive Vice Chairman and CEO responsibility for the office of the General Manager co-CEO.

The Executive Vice Chairman and CEO communicated to the Board of Directors the intention to immediately launch the process of identifying a figure on the market who will be able to support the execution of the next Strategic Plan, with an enhancement of the internal management.

The Board of Directors expressed its sincere thanks to Mr. Papadimitriou for his contribution in these months and will examine the terms and conditions for the resolution of his work relationship at a meeting which will be called in the coming days. Following the relative approval, it will be communicated to the market.

The Executive Vice Chairman and CEO Marco Tronchetti Provera said: “I thank Mr. Papadimitriou for the commitment generously given in these months of intense activity for the development of the Strategic Plan. Mr. Papadimitriou confirmed the positive personal characteristics and excellent professional competencies which led to his entry into Pirelli. With Mr. Papadimitriou I have begun preliminary talks to evaluate, at the Camfin level, the development together of new investment initiatives also in consideration of the private equity pathway launched by Camfin itself”.

Mr. Papadimitriou said: “In the coming weeks, after months of intense work, my managerial role in Pirelli will come to an end. It is a company with excellent management, well above market standards, and with a clear and winning strategy. I will continue to remain close to Pirelli by maintaining my roles on the Board of Directors and Strategies Committee. Over these months, I have in addition developed a positive personal and professional relationship with Mr. Tronchetti, with whom preliminary talks have begun to evaluate together the development of new entrepreneurial initiatives.”

Mr. Papadimitriou owns 170,000 Pirelli shares.

Published on: 20 January 2021, 12:33 CET

Published on: 18 December 2020, 15:10 CET

Published on: 15 December 2020, 07:04 CET

Published on: 14 December 2020, 19:20 CET

PIRELLI ASSOCIATED ONLY BECAUSE OF THE PRINCIPLE OF “PARENTAL LIABILITY” EVEN THOUGH IT DID NOT TAKE PART IN THE ACTIVITIES OF THE CARTEL

Milan, Oct. 28, 2020 – The sentence with which the EU Court of Justice today confirmed the prior decisions of the EU Tribunal and EU Commission regarding the investigation into a cartel in the electrical cables market will have no economic impact on Pirelli. The company, as previously announced, has already made the opportune provisions in its risk and charges fund for potential liabilities relative to these proceedings.

It is worth mentioning that in 2014 the EU Commission sanctioned Prysmian, jointly and severally with Pirelli, with a fine of Euro 67,310,000.00. In this respect, Pirelli had already delivered to the EU Commission a bank guarantee in the amount of Euro 33,655,000.00 plus interest.

From the financial point of view, if payment of the fine takes place before December 31, 2020, the Net Cash Flow target announced to the market on August 5, 2020 (Net Cash Flow between about +190 and about +220 million euro), would be respected in the lower part of the range.

The EU Court of Justice has so far rejected all the appeals filed by the entities involved in the antitrust investigation. With today’s decision, it confirmed that Pirelli must answer jointly and severally with Prysmian in application of the principle of so-called “parental liability”. This is because Pirelli held the share capital of Prysmian for part of the period of the cartel’s activity, from 1999 through 2005, even though Pirelli did not have any involvement in the activities of the cartel.

Since 2014, it should be noted, there has been a case brought by Pirelli pending before the Milan Court of First Instance to obtain a declaration that Prysmian has an obligation to hold Pirelli fully relieved of any claim related to the cartel, including but not limited to, the fine issued by the EU Commission.

Published on: 28 October 2020, 15:25 CET

The proposed reorganization – already shared with the Chairman of the Board of Directors Ning Gaoning and about which board members have been informed – aims also to broaden the management team in consideration of the future succession path in line with the Procedure already adopted by the Company.

The Procedure foresees that the path will conclude with the identification of a candidate by October 2022. The candidate will be proposed as the new chief executive officer of Pirelli in the first half of 2023, following the renewal of the Board of Directors by the Shareholders Meeting called to approve the company’s results for the year ending on December 31, 2022.

In the proposed new macro-organizational structure, the Executive Vice Chairman and CEO will continue to head the direction and control of strategy and extraordinary operations, and maintain as his reports Corporate Affairs, Compliance and Company Secretary; Strategic Planning & Controlling and Investor Relations; Communication and Brand Image; Global Institutional Affairs and Sustainability.

The General Manager co-CEO will be attributed with all the necessary executive levers, as well as all the staff areas not reporting directly to the Executive Vice Chairman and CEO, and the General Manager Operations, Andrea Casaluci, to whom all the business lines and regions will continue to refer, will also report to him. 

***

Angelos Papadimitriou is a manager who has held leadership positions at the international level in important multinational companies operating in a variety of industrial sectors. After obtaining a degree in Computer Science & Economics and an MBA at Harvard Business School, he began his career at Laboratoires Fournier and then moved to the Schering Plough pharmaceutical group to manage its Italian subsidiary and then become its Head of Primary Care in the United States. In 2003, he moved to Glaxo in London to head its commercial operations in Europe and then given responsibility for Country Italy, managing its repositioning and transforming it into one of the country’s main players in the pharmaceutical sector. Following the job done, he assumed a series of association roles, including the Presidency of the Board of Foreign Investors of Confindustria. In 2010, he became CEO of Coesia, a group active in the production of packaging machines, contributing to its path of development and the consolidation of its leadership in the sector at the global level, with actions to improve company performance and active growth through external avenues.

Published on: 15 July 2020, 08:05 CET

FURTHER COST CUTS AND LOWER INVESTMENT TO PROTECT PROFITABILITY AND CASH FLOW

REDUCTION OF BOARD, CEO AND TOP MANAGEMENT COMPENSATIONS

CANCELLATION OF MANAGEMENT SHORT-TERM INCENTIVE SYSTEM

2019 DIVIDEND CANCELLED

2020 TARGETS REVISED IN LIGHT OF DETERIORATING ECONOMIC CONTEXT

END 2020 REVENUES EXPECTED AT BETWEEN 4.3 AND 4.4 BILLION EURO (PRIOR INDICATION AROUND 5.4 BILLION EURO)

2020 ADJUSTED EBIT MARGIN BETWEEN 14%-15% (MARGIN IMPLICIT IN PREVIOUS TARGETS AROUND 17%)

INVESTIMENTS OF ABOUT 130 MLN EURO (PRIOR INDICATION ABOUT 300 MLN EURO)

2020 NET CASH FLOW BETWEEN 230-260 MLN EURO (IMPLICIT LEVEL OF PREVIOUS GUIDANCE AROUND 220 MLN EURO) TAKING INTO ACCOUNT CANCELLED DIVIDEND DISTRIBUTION

NET FINANCIAL POSITION AT END 2020 CONFIRMED AT ABOUT -3.3 BILLION EURO

FINANCIAL STRUCTURE SOLID AND ALREADY REINFORCED

IN LIGHT OF NEW 2020 GUIDANCE THE 2020-2022 PLAN TARGETS TO BE REVISED IN Q4 2020

***

Milan, 3 April 2020 – The Board of Directors of Pirelli met today and took stock of the deterioration of the global economic growth outlook because of the Covid-19 health emergency and the supersession of the scenario that was the basis for the 2020-2022 Industrial Plan presented on February 19, 2020.

In this context, the Board of Pirelli has therefore decided to:

• reformulate the 2020 targets in light of the elements available today, while reserving the recalculation of the 2022 ones in the fourth quarter, on the basis of the evolution of the external scenario;
• cancel the distribution of dividends for 2019, modifying the decision approved on March 2, 2020, while reserving at the same time the distribution of reserves to shareholders in the second half of 2020, should cash generation exceed the new 2020 target and/or the economic scenario permit greater visibility on the total impacts of the Covid-19 emergency.
• revise 2020 remuneration policy taking into account, in particular, the cancellation of the short-term incentive system for 2020.

Measures taken to deal with the Covid-19 emergency

In response to the Covid-19 health emergency, Pirelli immediately implemented all preventative actions to safeguard the health of its employees and the wider community. Pirelli created a task force that is in constant contact with the various institutional crisis units in all the countries where the company is present. The HSE function is coordinating the implementation of actions at the global level and, in addition, has created an emergency hotline for employees that is staffed 24/7 by doctors, security specialists and HSE. Pirelli has also promoted a number of initiatives to support the wider community: in Italy with donations together with the Lombardy Regional Government for Milan’s Sacco Hospital to provide medical devices; in China from a donation to the 'Coronavirus Relief Efforts' to the sending of healthcare equipment. There was a contribution to research against the Coronavirus drawn from the Pirelli Calendar project, following the cancellation of the 2021 edition. Pirelli is constantly in contact with all its stakeholders (including suppliers, clients and the distribution network) with the aim of limiting the impact of the crisis and to better plan the recovery.

New 2020 market scenario and actions taken

The Covid emergency will impact the global economy with a general fall in production and consumption.

In light of the elements available today and based on a prudent scenario, Pirelli now expects a fall of 2020 GDP at the global level of about -2.8% (+2.7% the outlook foreseen in the Industrial Plan presented on February 19). In this scenario, the expectations for the overall car tyre market are for a decline of approximately -19% with:

• -21% in the Original Equipment channel (prior estimate -2.4%) as a result of the global fall in the production of new vehicles;

• -18% in the Replacement channel (prior estimate +0.5%), taking also into account the measures restricting circulation adopted by various countries.

The expectations for the Car New Premium segment (Car tyres ≥18’’) are for a decline of -14% (prior indication +6%), more contained than the expected fall of -20% (prior indication around -2%) for the Standard segment (Car tyres ≤17’’).

To deal with this new scenario, Pirelli has implemented a series of actions aimed at protecting profitability and cash generation. In particular:

• temporary reduction of production levels: factory activity, which was slowed from the beginning of the emergency, has been temporarily suspended, beginning from March 20, in all production facilities (with the exception of China) with the adoption of social safety nets. In China, following the suspension of activities for about a month in two factories, activity is gradually returning to normal;
• launch of additional cost containment actions (reduction of discretionary costs, revision of marketing and communication activities, renegotiation of contracts with suppliers, prioritizing investments in R&D and efficiencies in the distribution channel). These actions are in addition to the competitiveness program already called for in the context of the industrial plan;
• revised investment plans for the current year in line with the new market outlook;
• launched actions for the optimal management of working capital (e.g. reducing of inventory levels);
• reduced compensation of top management and cancelled short-term incentive plan for 2020;
• cancelled 2019 dividend payment;
• reinforcement of the financial structure through refinancing actions already implemented in the first quarter of the year.

Updated 2020 guidance

Based on the new economic context and taking into account the actions implemented, Pirelli estimates for 2020:

· Revenues of between 4.3 and 4.4 billion euro (prior indication around 5.4 billion), with total volumes falling by between -18% and -20% (prior indication between 0% and +1%). In the High Value segment the expected decline is -14% (prior indication + 8%) with a performance of Car New Premium of about -11.5% (-14% fall expected for New Premium market) and a fall of around -26% in the Standard segment (previous indication -6%);

· Adjusted Ebit Margin of between 14% and 15% (around 17% margin implicit in the targets presented on February 19) thanks to above mentioned cost containment actions and a more favourable scenario for raw materials and energy costs;

·  Investments of around 130 million euro (prior indication about 300 million euro) mainly for plant management and improvement of mix and quality;

· Net Financial Position confirmed at around -3.3 billion euro with net cash generation of approximately 230-260 million euro (the corresponding implicit level in the previous guidance about 220 million euro), assuming the cancelled distribution of dividends.

In the fourth quarter of the year, in light of the situation’s evolution, there will be a revision of the 2022 outlook formulated in the context of the 2020-2022 Industrial Plan.

Cancellation of dividend for 2019

In light of the Covid-19 emergency, the board decided to cancel payment of the dividend for 2019, modifying therefore the proposed distribution of the 2019 profit already approved on March 2, calling for a dividend of 0.183 euro per share for a total of 183 million euro.

Therefore, at the next Pirelli & C. shareholders’ meeting, called for June 18, there will be a proposal to bring back the entire 2019 profit, about 273.2 million euro. The board will evaluate the possible calling of a shareholders’ meeting, to be held in the second half of the year, to propose the eventual distribution of reserves, should cash generation exceed the new 2020 target and/or the economic scenario permit greater visibility on the total impacts of the Covid-19 emergency.

Management compensation 2020 and remuneration policy

In the context of measures to contain costs, the Executive Vice Chairman and CEO, Marco Tronchetti Provera, members of the board of directors and managers of the leadership team have renounced part of their compensation for the next three months. In particular:

• 50% of the gross fixed annual compensation of the Executive Vice Chairman and CEO, Marco Tronchetti Provera, also for the positions of Vice Chairman, Executive Director and CEO, as well as for the positions of board member and Chairman of the board committees;

• 50% of the remuneration of board members;

• 20% of the gross fixed annual compensation of managers of the leadership team.

The Pirelli board also decided to cancel the short-term monetary incentive plan (STI, Short Term Incentive), destined to all group Managers including the Executive Vice Chairman and CEO and the leadership team.

The actions described above will allow savings of approximately 31 million euro.

Group’s financial solidity confirmed

The group’s financial solidity has been further reinforced, thanks in part to refinancing actions already taken in the first quarter with the subscription to a new sustainable bank line of 800 million euro (5-year) and the extension of the maturity of a 200 million euro credit line to September 2021, compared with the original maturity of June 2020. These actions will allow the company, through liquidity and bank lines, to meet its debt maturities for the next 3 years, approximately.

***

The content of this press release is also available in presentation format at the website www.pirelli.com in the Investor Relations section. The next conference call with the financial community will take place on May 13, 2020, when the results of the first quarter of 2020 are reviewed.

Published on: 03 April 2020, 17:43 CET

REORGANIZATION OF PRODUCTION STRUCTURE TO ACCELERATE FOCUS ON HIGH VALUE PRODUCTS, MAXIMIZE EFFICIENCY AND ENSURE COMPETITIVENESS

STRENGTHENING OF FACTORY IN CAMPINAS (SAN PAOLO) WITH THE CREATION OF A PRODUCTION HUB FOR HIGH VALUE CAR, MOTO AND MOTORSPORT TYRES FOR LATIN AMERICA; 300 NEW HIRES SEEN BY 2022

IN GRAVATAÍ (RIO GRANDE DO SUL) ACTIONS WILL BE TAKEN, IN AGREEMENT WITH UNIONS, TO MITIGATE THE SOCIAL IMPACT OF THE TRANSFER OF MOTO PRODUCTION TO CAMPINAS

PIRELLI AND PROMETEON TYRE GROUP WILL RECIPROCALLY EVALUATE ACTIONS AIMED AT MITIGATING EMPLOYMENT IMPACTS

Milan, 13 May 2019 – Pirelli confirms its strategic presence in Brazil through a reorganization of its production structure, which will facilitate the acceleration of its the focus on High Value products and improve the competitiveness of its manufacturing sites in the Country, considering also the difficult economic context.

The Company foresees a 120 million euro investment plan for the period 2019-2021 for the modernization and reconversion of its production plants from Standard to High Value, and the ongoing improvement of the mix and quality in the factories of Campinas (San Paolo) and Feira de Santana (Bahia). These investments are in addition to the 320 million euro already deployed in the period 2013-2018. This reorganization will make Pirelli’s presence in Brazil more solid and more competitive.

In particular, the reorganization calls for the strengthening of the factory in Campinas, which today only produces Car tyres, through the transfer of Moto tyre production from the plant in Gravataí (Rio Grande do Sul), which will be completed by mid-2021. This reorganization will facilitate the creation of an industrial hub to serve the markets of Latin America, which will be dedicated to the production of Car, Moto and Motorsport tyres, with a growing focus on High Value. This operation will permit the optimization of production processes and logistics flows, also thanks to the Campinas plant’s favourable position closer to the production of facilities of car and motorcycle makers, and its enhancement will permit the hiring of around 300 people by 2022.

The resources relative to the reorganization are mainly derived from the signing of the fiscal agreement for the Patent Box, which took place in October of 2018 and, as announced at the time, go towards the further focus on High Value and faster reduction of the Standard segment.

At the same time, with the goal of finding an agreement with unions during the period of production transfer, the Company will take all possible actions to mitigate the social impact at the Gravataí plant, which today employs around 900 people.

In particular, as a first step on this path and considering the confirmation received from Prometeon Tyre Group Brazil of its industrial presence in Gravataí, Pirelli and Prometeon Tyre Group will reciprocally evaluate actions aimed at mitigating the effect on employment, compatibly with the conditions of the local market and the competitiveness of the respective businesses.

Published on: 13 May 2019, 20:12 CET

Milan, April 1, 2019 - Pirelli was today informed that a judicial decision by the Federal Regional Court of the First Region (T.R.F.-1, with seat in Brasilia), which recognized the right of its Brazilian subsidiary, Pirelli Pneus Ltda., to exclude the ICMS tax (State Tax on Operations levied on the delivery of goods and interstate and inter-municipal transport and communication services) from the calculation basis of the PIS and COFINS social contributions for the period 2003-2014, is no longer subject to appeal and will formally become final (res judicata).

This will generate an expected positive income impact in the first half of 2019, net of due income taxes, of approximately 107 million euro, broken down as:

• positive impact on the Operating Result (EBIT) of around 80 million euro
• positive impact on Financial Income of about 82 million euro
• negative fiscal impact of around -55 million euro

As these positive non-recurring impacts only effect the above mentioned items in the income statement, there are no changes to the 2019 forecast figures (adjusted Ebit margin* ~19%, revenues +4%/+6%), as announced to the market on 14 February. The benefits in terms of group cash flow are expected to arrive in the 5-year period 2020-2024.

*adjusted EBIT margin: is calculated by dividing the EBIT adjusted by revenues from sales and services (net sales). This measure is used to evaluate operational efficiency, and excludes from the operating result (EBIT) the amortisation of intangible assets relative to assets recognised as a consequence of Business Combinations, the operating costs attributable to non-recurring and restructuring expenses and the expenses relative to the retention plan approved by the Board of Directors on February 26, 2018.

Published on: 1 April 2019, 18:37 CET

Pirelli announces that today it signed a preliminary agreement with the Italian taxation office for access the tax facilitations of the Patent Box, with reference to the fiscal years 2015-2019.

The estimated tax benefit for the 3-year period 2015-2017 will be around 54 million euro and will be booked in the financial statement for the current year taking into account the exact figure, now being determined, of the benefit for 2018. The Chief Executive Officer of Pirelli, Marco Tronchetti Provera, will propose to the Board of Directors meeting called for November 14, 2018 to review the results for the nine months ending on September 30, 2018, that these resources are used to further focus on the High Value segment through a more rapid reduction of the standard segment and related costs.

The calculation of the benefit for 2019 will, instead, be done when the results for the relative period are being prepared.

The average consolidated tax rate expected for the period 2018-2020 will be in the 26% to 28% range, in line with the average consolidated rate for the period of the 2017-2020 industrial plan presented for the IPO and then estimated at below 30%.

The Patent Box is system of tax breaks benefitting companies which use, directly or through concessions, intellectual works, industrial patents, trademarks, designs, models and processes, formulae and information relative to experience acquired in the industrial, commercial or scientific fields which can be protected by law. The breaks will last five years (2015-2019) and can be renewed at the end of the period through the signing of a new agreement.

Published on: 15 October 2018, 12:15 CET

• Revenues posted organic growth of 5.5% to 2,630.3 million euro, the overall variation -2% taking into account the forex effect (-6.9%) and variation in accounting principles (-0.6%)

• Strengthening of High Value segment: +12.7% organic revenue growth, equal to 64.0% of sales (58.2% in first half 2017).

• High Value volumes growing by 13.1%, including +18.3% of Car New Premium ≥18 inches

• Price/mix saw significant improvement: +6.7% in first half 2018 (+5.9% in first half 2017)

• Adjusted Ebit before start-up costs: +6.8% to 473.3 million euro (443 million euro in first half 2017), with a margin on revenues increasing to 18% (16.5% in first half 2017)

• Net profit from continuing operations: +169% to 181.9 million euro (67.6 million euro in first half 2017)

• Net financial position at 3,916.5 million euro (4,176.5 million euro in first half 2017)

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2018 OUTLOOK

• Profitability targets confirmed (Adjusted Ebit before start-up costs >1 billion euro and Adjusted Ebit at ~1 billion euro) and Net Financial Position (~2.3x the NFP/Adjusted Ebitda ratio before start-up costs)

• The strengthening of High Value was confirmed (>60% weight on revenues, >83% weight on Adjusted Ebit before start-up costs); further acceleration in the reduction in the standard segment

• Expected revenues of ~5.4 billion euro; the growth in High Value volumes (≥+13% growth in volumes) and the price mix (+6.5%/+7.5%) was confirmed

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• Ning Gaoning co-opted to the Board and appointed Chairman

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• Approved repurchase of bond issues up to 150 million euro

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As a result of the assignment in the month of March 2017 by Pirelli & C. S.p.A. to the controlling company Marco Polo International Holding Italy S.p.A. of the shares of TP Industrial Holding S.p.A., the company into which were conferred almost the totality of Pirelli’s Industrial assets, in continuity with 2017 some residual Industrial activities in Argentina (separation completed in 2018) and in China (separation expected in during 2018) are qualified as “discontinued operations”.

Please note also that the comparative data at 30 June 2017 refer to the Carve Out financial statement at 30 June 2017 prepared in accordance with the IAS 34 in order to represent the assets, liabilities, revenues and costs directly attributable solely to Consumer activities, approved by the Board of Directors on 28 July 2017 and included in the registration document prepared for the authorization for admission for listing of Pirelli shares on the Mercato Telematico Azionario organized and managed by Borsa Italiana SpA.

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Milan, 7 August 2018 - A meeting of the Board of Directors of Pirelli & C. S.p.A. today reviewed and approved the results for the six months which ended on June 30, 2018. The first half performance was in line with the path focused on High Value and shows growth of all key economic indicators. In particular:

• the organic growth of revenues thanks to the Pirelli’s strengthening position in High Value in all Regions alongside a progressive reduction of the exposure to the standard segment;
• the improvement of price/mix;
• the further increase of profitability by 1.5 percentage points to 18% (Adjusted Ebit margin before start-up costs against revenues);
• the further strengthening of partnerships with Prestige and Premium car makers;
• the increasing of High Value production capacity mainly in Europe and Nafta;
• the reinforcement of distribution coverage in Europe, Nafta, Apac and LatAm;

• the development of business progammes that intercept the new needs of end customers (such as Cyber and Velo). These are accompanied by projects for the digital transformation of the company and the reconversion of Aeolus branded production to Pirelli branded in the Jiaozou Aeolus Car factory.

Published on: 7 August 2018, 17:50 CET

Yanzhou (China), 1 August 2018 – Pirelli has reached an understanding with the Hixih Group, the signing of which is expected in the coming days, for the creation of a Joint Venture which will own, through the company Jining Shenzhou Tyre Co., a new consumer tyre production plant in China.

The investment will give Pirelli the necessary production flexibility in the High Value segment, taking into account the evolution of the Chinese market, the expected developments in electric vehicles and the growing share of homologations obtained in the Original Equipment segment in China, Japan and Korea.

Under the terms of the agreement, Pirelli will manage the operation of the plant and acquire a 49% stake in the JV for around 65 million euro with the right to increase it up to 70% in the period from 1 January 2021 to December 2025.

The transaction, which is subject to the obtainment of the relevant approvals from local authorities and the closing of which is expected to occur by the end of the current year, leaves all targets indicated in the 2017-2020 industrial plan unchanged.

The acquisition of a significant stake in this technologically advanced consumer tyre plant will reinforce the group’s High Value strategy, which identified the Apac area a key growth driver, through a strategy which calls for the continuous improvement of the product mix, the digitalization of processes and constant attention to environmental sustainability.

In the future, a new local structure for Research and Development, deploying the latest innovations and technologies, will be concentrated in Yanzhou in the Hixih Industrial Park, near Pirelli’s existing Chinese production hub. This will further reinforce Pirelli’s operations in Yanzhou, which is today among the most advanced tyre manufacturing facilities in the world, focused on the production of High Performance tyres.

Published on: 1 August 2018, 20:12 CET

Published on: December 21, 2017, 01:34 PM CET

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