Pirelli in Figures 3Q 2011

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					                    PIRELLI IN FIGURES 9M 2011
    Agenda
1   Highlights by quarter    9   Debt                  17   Revenues driver
2   Highlights FY           10   Key Ratio             18   Tyre EBIT Bridge
3   2011 Guidance           11   Equity 2011           19   Tyre NFP
4   2012-14 Guidance        12   Capex                 20   Tyre Markets
5   Income Statement FY     13   R&D                   21   Raw Materials
6   Balance Sheet FY        14   Tyre Mix              22   Industrial Plants
7   Balance Sheet YTD       15   Tyre Quarterly Data   23   Financial Calendar
8   Cash Flow FY            16   Tyre YtD              24   Contacts
9   Cash Flow 9M
PIRELLI & C. HIGHLIGHTS DATA BY QUARTER
(euro mln)

                                                                           2008            2009            2009           1Q10       2Q10      3Q10      4Q10      2010      1Q11        2Q11       3Q11
                                                                                                        restated*
Profit and Loss
Net sales                                                                    4,660        4,462.2         4,067.5         1,134.4    1,234.6   1,249.7   1,229.7   4,848.4    1,400.9    1,388.4    1,476.5
Ebitda before restructuring cost                                               396          508.1           507.8           141.9     163.3     174.9     173.6     653.7      203.4      207.5      220.2
% on sales                                                                    8.5%          11.4%           12.5%           12.5%     13.2%     14.0%     14.1%     13.5%      14.5%      14.9%      14.9%
Ebit before restructoring costs                                                187          297.0           304.9            90.2     109.6     119.9     112.8     432.5      146.5      151.3      163.3
% on sales                                                                    4.0%           6.7%            7.5%            8.0%      8.9%      9.6%      9.2%      8.9%      10.5%      10.9%      11.1%
Ebit                                                                            43          217.4           249.7            87.6     104.3     115.4     100.5     407.8      143.3      146.8      161.1
% on sales                                                                   0.93%           4.9%             6.1%           7.7%      8.4%      9.2%      8.2%      8.4%      10.2%      10.6%      10.9%
Ebit incl. income from equity participations                                  (323)         160.7            238.1           84.7     103.2     137.4     105.9     431.2      144.1      146.9      163.2
Net income before discontinued operation                                      (476)         (22.6)            77.6           36.7      40.3      83.3      67.7     228.0       81.4       77.4       92.5
Net income                                                                    (413)         (22.6)           (22.6)                                                    4.2      81.4       77.4       92.5
Attributable Net income                                                       (348)          22.7             22.7                                                   21.7       82.8       78.9       93.6


Balance Sheet
Fixed assets                                                                 3,665          3,596            3,596                                                  3,164      3,142
Net working capital                                                            418            222              222                                                    117        416
Net invested capital                                                         4,083          3,818            3,818                                                  3,281      3,559
Equity                                                                       2,374          2,495            2,495                                                  2,028      2,072
Provisions                                                                     681            794              795                                                    797        774
Net financial (liquidity)/debt position                                      1,028            529              529                                                    456        713
 Pirelli & C. attributable Equity                                            2,172          2,175            2,175                                                  1,991       3,559
 Pirelli & C. attributable Equity (in euro)**                                 4.45           4.46             4.46                                                   4.08    2,034.70

Cash Flow
Operating cash flow                                                        (129.6)          556.1                           (51.5)    120.3      65.4     176.1     310.3      (207.0)      88.4      (42.5)
Net operating cash flow                                                    (282.2)          372.8                           (99.5)     57.4      11.3     137.9     107.1      (269.7)      18.9     (113.2)
Net cash flow                                                            (1,329.8)          498.9                          (149.6)    (18.5)     (8.0)    249.3      73.2      (257.2)     (66.1)    (159.4)

** Tot Pirelli shares post reverse stock split 487,991,493 (of which ordinary shares 475,740,182 and saving shares 12,251,311)




                                                                                                                                                                                                              1
PIRELLI & C. HIGHLIGHTS YEARLY DATA
(euro mln)
                                                                                                                                                                   2009
                                                                                                     2005          2006             2007      2008      2009            1   2010
                                                                                                                                                                 restated

Profit and Loss
Net sales*                                                                                             4,546        4,841           4,780     4,660     4,462      4,067     4,848
Ebitda before restructuring cost                                                                        568           614            573       396       508        508       654
% on sales                                                                                            12.5%         12.7%          12.0%      8.5%     11.4%      12.5%     13.5%
Ebit before restructoring costs                                                                         355           401            364       187       297        305       433
% on sales                                                                                             7.8%          8.3%           7.6%      4.0%      6.7%       7.5%      8.9%
Ebit                                                                                                    355           401            364        43       217        250       408
% on sales                                                                                              7.8%         8.3%            7.6%      0.9%      4.9%       6.1%      8.4%
Ebit incl. income from equity participations                                                             622        1,192             513      (323)      161        238       238
Net income**                                                                                             399       (1,049)            324      (413)      (23)       (23)        4
Attributable Net income                                                                                  327       (1,167)            165      (348)       23         23        22
Attributable Net income per share (in euro)                                                            0.062       (0.217)          0.031    (0.065)    0.004      0.047     0.044

Balance Sheet
Fixed assets                                                                                           7,624        6,924           3,815     3,665     3,596      3,596     3,164
Net working capital                                                                                      (48)         463             298       418       222        222       117
Net invested capital                                                                                   7,576        7,387           4,113     4,083     3,818      3,818     3,281
Equity                                                                                                 5,614        4,687           3,804     2,374     2,495      2,495     2,028
Provisions                                                                                               785          720             611       681       794        795       797
Net financial (liquidity)/debt position                                                                1,177        1,980            (302)    1,028       529        529       456
Pirelli & C. attributable Equity                                                                       5,205        3,880           2,980     2,172     2,175      2,175     1,991
Pirelli & C. attributable Equity (in euro)****                                                         10.77         7.95            6.11      4.45      4.46       4.46      4.08

Cash Flow
Operating cash flow                                                                                      343          374             299      (130)     556         496      310
Net operating cash flow                                                                                  134          104              27      (282)     373         335      107
Net cash flow                                                                                            389         (802)          2,282    (1,330)     499         499       73

Capex and R&D***
Capex                                                                                                    234          255            287       311       225         225      433
Depreciation                                                                                            197           201            214       199       202        198       217
Capex/Amortization & Depreciation                                                                       1.19          1.27           1.34      1.56      1.12       1.14      2.00
R&D expenses                                                                                            174           171            173       156       137        137       150
% on sales                                                                                              3.8%         3.5%           3.6%      3.3%      3.1%        3.4%     3.1%

Key Financial Ratio
Net income/Equity - ROE                                                                              7.38%       (20.37%)           7.63% (13.35%) (93.00%)      (0.93%)     0.19%
Ebit/Net invested capital - ROI                                                                      5.02%          5.36%           6.33%    1.05%    5.50%        6.32%    11.49%
Net financial position / Equity - Gearing                                                               0.21         0.42            n.s.     0.43     0.21         0.21      0.22
Sales* per employee (in thousands of euro)                                                              173           172             155      148      151          138       160

Employees (at 31/12)                                                                                 26,827       28,617           30,823    31,056    29,570    29,570     29,573
of which Tyre                                                                                         23,673        25,169         27,224    28,601    27,481      27,481   28,865
(1) Pirelli RE and PBS as discontinued operations
 * Excluding net sales for deconsolidation DGAG real estate assets in 2007 for €1296mln
 ** 2006 loss was due to the Olimpia writedown
 *** R&D expenses fully included in P&L
**** Tot Pirelli shares post reverse stock split 487,991,493 (of which ordinary shares 475,740,182 and savings share 12,251,311)


                                                                                               11


                                                                                                                                                                                     2
                                  PIRELLI 2011 TARGETS UPDATE
  €/bln
                                           2011 Targets       2011 Targets Update
                                            (July 27, 2011)       (Nov 8, 2011)


                   Revenues                     >5.85                 <5.8
                         Tyre                   >5.80                ~5.7
                             Volumes            >+5%                 ~+3%
                             o/w Premium                             +23%
                             Price/mix          >16%                ~+18%

                   EBIT %                   9.5% ÷ 10%               ~10%
                         Tyre                10% ÷ 11%               ~11%
                      Raw Material
                      Headwind                 540                  510


                   Tax rate                     <37%               Confirmed
                   Capex                        >0.5                  <0.6

                   NFP                          ~0.7 *             Confirmed

*Not including Russian JV1
                                   PIRELLI TARGETS: 2011-2014 P&L
         €/bln
                                                             2011E                              2012E                               2014E

         Total Revenues                                         <5.8                              ~6.7                                 ~7.7
                                                                                                  YoY                            CAGR 11-14

          Growth rate                                                                             16%                                  10%
                 o/w Russia JV                                                                     6%                                  2%
                 o/w volumes                                 ~ +3%                                 2%                                  3%
                       o/w Premium                            23%                                  20%                                 17%
                 o/w price/mix                               ~+18%                                  8%                                  5%


         EBITDA*%                                            ~14%                          15% ÷ 16%                            19% ÷ 20%


         EBIT*%                                             ~ 10%                          11% ÷ 12%                         ~ 15% ÷ ~ 16%
                 o/w Russia                                                                 mid single digit                      14% ÷ 15%


                 (€/mln)                                        2011                              2012                                 2014

                 Holding Costs & LTI provisions                 <20                             Including Tyre following the new organization

                 Minor Business & other
                                                                ~ -35                             < -20                                < -10
                 non-recurring items

*After continuous restructuring



                                PIRELLI 2014 TARGET
                       NET FINANCIAL POSITION & 2015 LEVERAGE
     €/mln




                       ~ 0.05                                                        0.3
                                                                          0.5                      ~1
      ~0.70                       ~0.75                                                                       (1.3)                       0.3      <0.6
                                                                                                                            <0.6
                                             (1.85)       1.3




     2011E NFP        RUSSIA      2011E     OPERATING   FINANCIAL       DIVIDENDS Δ PERIMETER   2014 E      OPERATING      FINANCIAL   DIVIDENDS   2015E
      BEFORE                                CASH FLOW    & FISCAL                    RUSSIA                 CASH FLOW       & FISCAL
                                   NFP                                                           NFP                                                NFP
      RUSSIA                                            CHARGES                                                            CHARGES



  Net
 Debt/       0.9X                                                                                0.7X                                              0.4X
Ebitda


                                                                Dividend policy


Shareholder remuneration: ~40% distribution of cumulative 2012-2014 Consolidated Net Profit
PIRELLI & C INCOME STATEMENT YEARLY DATA
(€ milion)                                                               2005                          2006                       2007                        2008                        2009                          2009                        2010
                                                                                                                                                                                                                      restated
                                                                                       of which                     of which                    of which                    of which                    of which                     of which                     of which
                                                                                 related parties              related parties             related parties             related parties             related parties              related parties              related parties
Revenues from sales and services                                       4,546              405       4,841              371      6,505              299      4,660              138      4,462              155       4,067                 1      4,848                 6
Other income                                                             284              118         293              104        286               73        176                         175                          147                          154                 2
- of which non-recurring events                                           21                                                        3                          17                            6                            6
Change in inventories of work in process, semi-finished and finished       13                            7                          30                         115                        (117)                        (109)                          34
Raw materials and consumables (net of change in inventories)           (1,640)                      (1,773)                     (3,037)                     (1,833)                     (1,399)                      (1,373)                      (1,905)
Personnel expenses                                                     (1,030)              (8)     (1,076)              (5)    (1,156)             (15)    (1,175)              (3)    (1,054)             (13)       (949)             (13)     (1,064)              (5)
- of which non-recurring events                                                                                                     5                        (132)                         (59)                         (51)                         (18)
Amortization, depreciation and impairments                              (216)                        (215)                       (219)                       (219)                       (231)                        (219)                        (229)
- of which non-recurring events                                                                                                                                 (7)                         (8)                          (8)                          (7)
Other expenses                                                         (1,613)           (106)      (1,684)           (111)     (2,049)           (117)     (1,688)             (43)    (1,621)             (37)     (1,317)             (16)     (1,443)             (23)
- of which non-recurring events                                           (21)                         (13)                                                     (5)                        (19)                          (1)                            -
Increase in property, plant and equipment from internal work              11                            9                           7                            5                           3                            3                          11
Operating income                                                         355                          401                         367                           43                        217                          250                          408
Net income from equity investments                                       188                          114                         133                         (366)                        (57)                         (12)                         23
   - share of net income of associates and joint ventures                251                          104                         119                        (176)            (176)       (61)              (61)          0                0          0                 0
   - gains on equity investments                                                                                                                                56                          33                0         18                           24
   - losses on equity investments                                        (90)                          (56)                       (20)                       (282)                        (37)                         (37)                          (6)
   - dividends                                                            27                            66                         34                           35                           8                            7                           6
Financial income                                                         248                13         876               17       340                31        525               34       373                30        345                          298                 1
Financial expenses                                                      (314)               (0)       (343)              (0)     (416)               (4)      (605)              (0)     (458)              (11)      (415)                        (363)                 -
Net income before income taxes                                           478                         1,049                        424                         (403)                         75                         168                          365
Income taxes                                                            (128)                         (128)                      (134)                         (73)                        (98)                         (90)                       (137)
Net income from continuing operations                                    349                           921                        291                         (476)                        (23)                          78                         228
Net income from discontinued operations                                   50                        (1,970)                        33                           63                           -                        (100)                        (224)
Net income for the period                                                399                        (1,049)                       324                         (413)                        (23)                         (23)                          4
Attributable to:
Equity holders of the parent company                                     327                        (1,167)                       165                        (348)                          23                           23                           22
Minority interests                                                        72                           119                        159                         (65)                         (45)                         (45)                         (18)

Earnings/(losses) per share (euro per thousand shares)
basic earnings per share
- continuing operations                                                                             150.24                      24.47                       (70.65)                      4.24                        161.39                       479.66
- discontinued operations                                                                          (368.87)                      6.12                         5.74                          -                       (114.73)                     (435.04)
                                                                                                   (218.63)                      30.59                      (64.91)                       4.24                        46.66                        44.62




                                                                                                                                                                                                                                                                              7
PIRELLI & C BALANCE SHEET YEARLY DATA
(€ milion)                                                  2005                      2006                   2007                   2008                   2009                  2010
                                                                     of which                 of which               of which               of which              of which              of which

Assets                                                           related parties         related parties        related parties         related parties       related parties       related parties

Property, plant and equipment                              1,572                     1,575                  1,650                  1,598                   1,727                 1,977
Intangible assets                                            477                       516                    673                  1,046                   1,047                   849
Investments in associates and joint ventures               4,543                     3,826                    534                    515                     593                   153
Other financial assets                                     1,032                     1,007                    958                    527                     228                   185
Deferred tax assets                                           82                        64                     59                     72                      91                    70
Other receivables                                            539         262           706       334          673        521         702         565         557    395            316
Tax receivables                                                9                        11                     12                     10                      10                    11
Financial instruments                                        -                           -                      4                      3                       -                     -
Investments properties                                           5                       -                      -                      -                       -                     -

NON-CURRENT ASSETS                                        8,259.4                   7,704.8                4,563.0                4,474.2                 4,254.2               3,560.0

Inventories                                                681.1                     715.5                   776.5                 921.1                   679.0                 692.3
Trade receivables                                          943.4        190          999.7       168       1,098.9      122        788.0         77        735.8     91          676.7   8
Other receivables                                          325.0          1          356.2        12         241.5       22        240.0         24        197.1     19          175.0 150
Securities held for trading                                179.6                     119.2                   114.0                 115.8                   161.0                 209.8
Cash and cash equivalents                                  300.3                     269.6                 2,057.7                 253.9                   632.1                 244.7
Tax receivables                                             58.2                      33.4                    43.3                  46.2                    41.5                  25.2
Financial instruments                                       67.1                      29.1                    58.3                  94.0                    26.6                  35.2

CURRENT ASSETS                                            2,554.7                   2,522.7                4,390.2                2,459.0                 2,473.1               2,058.8
TOTAL ASSETS                                             10,814.2                  10,227.5                8,953.2                6,933.2                 6,727.3               5,618.8

Equity and Liabilities

Attributable to the equity holders of the company:        5,204.9                   3,879.6                2,980.2                2,171.8                 2,175.0               1,990.8
         Share capital                                    2,762.7                   2,790.0                1,555.9                1,554.3                 1,554.3               1,375.7
         Other reserves                                   2,010.7                   1,971.0                1,259.7                  965.0                   598.0                 593.3
         Retained earnings                                  104.0                     286.1                    0.0                      -                       -                     -
         Income (loss) for the year                         327.4                  -1,167.4                  164.6                 -347.5                    22.7                  21.8
Attributable to the minority interest:                      408.9                     807.0                  823.8                  202.6                   319.6                  37.2
         Reserves                                           337.4                     688.4                  664.8                  267.6                   365.0                  54.7
         Income for the year                                 71.5                     118.6                  159.0                  -65.0                   -45.3                 -17.5

TOTAL EQUITY                                              5,613.8                   4,686.6                3,804.1                2,374.4                 2,494.7               2,028.0
Borrowings from banks and other financial institutions    1,550.5                   1,377.4                  905.3                1,375.7                 1,505.8                 894.7
Other payables                                               61.8                     132.9                   23.3                   48.5                    34.0                  41.7
Provisions for other liabilities and charges                170.6                     145.1                  146.3                  141.2                   167.8                 165.7
Deferred tax liabilities                                     54.6                      42.9                   44.6                   38.4                    44.0                  33.7
Employee benefit obligations                                510.8                     415.9                  349.1                  366.5                   451.9                 481.7
Tax payables                                                  2.7                       9.7                   11.2                    9.7                    10.0                   5.5
Financial instruments                                         2.0                       4.8                    6.8                    2.1                       -                     -

NON-CURRENT LIABILITIES                                   2,352.9                   2,128.7                1,486.7                1,982.2                 2,213.5               1,623.1

Borrowings from banks and other financial institutions      600.4                   1,562.3        0         754.7        3         695.6         5        289.3      2           247.5 77
Trade payables                                            1,018.3        27         1,102.5       25       1,323.6       29       1,108.6        24        987.9     24         1,066.4   5
Other payables                                              838.3         0           536.9        3       1,394.7       22         482.4         8        491.0     11           403.4   1
Provisions for other liabilities and charges                 54.0                     116.5                   71.3                  135.7        49        130.8      3           116.0 -
Tax payables                                                 42.2                      48.8         1         45.7                   44.0         1         43.9      1            64.6 -
Financial instruments                                       294.3                      45.4                   72.5                  110.5                   76.2                   69.9

CURRENT LIABILITIES                                       2,847.4                   3,412.3                3,662.5                2,576.7                 2,019.1               1,967.7

TOTAL EQUITY AND LIABILITIES                             10,814.2                  10,227.5                8,953.2                6,933.2                 6,727.3               5,618.8


                                                                                                                                                                                                      9
PIRELLI & C BALANCE SHEET YTD
                                                                1Q 09         1H 09           9M 09       FY 09        1Q 10       1H 10       9M 10       FY 10        1Q 11       1H 11       9M 11
(€ milion)

Assets
Property, plant and equipment                                    1,599         1,618            1,612       1,727        1,777      1,867        1,820      1,977         1,973      2,040        2,102
Intangible assets                                                1,044         1,038            1,035       1,047        1,047        850         849         849           847        848         848
Investments in associates and joint ventures                       509           530             523          593         595         132         134         153           137        136         153
Other financial assets                                             404           396             319          228         235         173         183         185           185        178         155
Deferred tax assets                                                 73            78              80              91       97          72          72          70            66         61          62
Other receivables                                                  750           660             641          557         559         162         157         316           323        337         183
Tax receivables                                                     11                9               9           10       10          11          10          11            10         11          10
Financial instruments                                                6                -               -            -           -           -           -        -               -           -           -

NON-CURRENT ASSETS                                              4397.3        4329.7          4219.8       4254.2      4319.6      3267.9      3226.4       3560.0     3541.652     3611.3      3512.9


Inventories                                                      824.4         759.7           673.4        679.0       710.7       669.8       635.0        692.3        747.0      844.3       890.4
Trade receivables                                                886.4         828.6           923.0        735.8       922.8       791.1       858.9        676.7        953.6      887.1      1024.8
Other receivables                                                254.1         204.1           204.9        197.1       213.5       254.0       271.8        175.0        214.9      255.6       420.9
Securities held for trading                                      119.5         104.7           135.0        161.0       142.7       136.4       247.9        209.8        205.3      224.8       239.5
Cash and cash equivalents                                        242.4         237.8           413.1        632.1       436.8       334.5       141.3        244.7        163.3      135.8       286.7
Tax receivables                                                   42.3          41.5            38.9         41.5        46.8        43.4        45.4         25.2         26.0       30.0        28.3
Financial instruments                                             40.2          32.4            27.6         26.6        45.2        71.2        60.9         35.2         58.0       42.1        96.0
Owned asset for the distribution to shareholders                                                                                   1232.9      1211.8                                                 -

CURRENT ASSETS                                                  2409.1        2208.7          2415.9       2473.1      2518.4      3533.4      3473.0       2058.8       2368.0     2419.6      2986.6

Assets held for sale                                        -             -               -                       -            -           -           -           -            -           -           -

TOTAL ASSETS                                                    6806.4        6538.5          6635.7       6727.3      6838.0      6801.3      6699.5       5618.8       5909.7     6030.9      6499.5


Equity and Liabilities
Attributable to the equity holders of the company:              2129.0        2202.1          2244.9       2175.0      2271.8      2004.9      1823.2      1,990.8       2034.7     2013.6      2026.5
         Share capital                                          1554.3        1554.3          1554.3       1554.3      1554.3      1554.3      1375.7      1,375.7       1375.7     1343.3      1343.3
         Other reserves                                          565.2         641.5           672.5        598.0       678.3       616.1       534.4        593.3        576.1      508.6       427.9
         Income (loss) for the year                                9.6           6.3            18.2         22.7        39.2      (165.5)      (90.0)        21.8         82.8      161.7       255.3
Attributable to the minority interest:                           173.4         167.5           325.8        319.6       324.2       311.4       309.1         37.2         37.3       33.6        23.4
         Reserves                                                181.8         186.2           352.7        365.0       324.5       321.5       323.6         54.7         38.7       36.6        27.4
         Income for the year                                      (8.4)        (18.7)          (26.9)       (45.3)       (0.4)      (10.1)      (14.5)       (17.5)        (1.4)      (3.0)       (4.0)

TOTAL EQUITY                                                    2302.4        2369.6          2570.7       2494.7      2596.0      2316.3      2132.3       2028.0       2072.0     2047.2      2049.9

Borrowings from banks and other financial institutions          1354.8        1287.3          1355.0       1505.8      1433.4      1012.8      1033.6        894.7        977.9     1054.9      1367.1
Other payables                                                    38.4          23.3            24.9         34.0        37.7        37.4        37.6         41.7         47.5       43.1        52.5
Provisions for other liabilities and charges                     147.1         155.6           163.9        167.8       171.9       159.6       153.4        165.7        162.1      164.6       153.4
Deferred tax liabilities                                          39.2          42.5            42.7         44.0        44.0        42.3        38.5         33.7         25.8       28.7        23.7
Employee benefit obligations                                     360.2         390.5           374.2        451.9       438.6       484.1       474.3        481.7        471.0      474.8       490.9
Tax payables                                                      10.1           9.6             9.9         10.0        10.6        16.8         5.5          5.5          5.0        5.4         4.7
Financial instruments                                              2.3    -               -                      -           -           -           -           -             -          -           -

NON-CURRENT LIABILITIES                                         1952.1        1908.7          1970.6       2213.5      2136.1      1753.0      1742.8       1623.1       1689.3     1771.5      2092.3

Borrowings from banks and other financial institutions           974.3         721.8           448.7        289.3       301.2       267.3       167.6        247.5        348.5      342.4       385.5
Trade payables                                                   840.8         802.8           833.4        987.9      1026.8       994.6       961.8      1,066.4       1087.4     1140.8      1206.3
Other payables                                                   448.2         465.4           513.4        491.0       461.3       379.1       617.0        403.4        425.5      484.0       479.0
Provisions for other liabilities and charges                     160.4         143.4           158.2        130.8       149.3       117.1       117.8        116.0        115.1      111.3       101.5
Tax payables                                                      57.8          40.3            55.5         43.9        62.5        65.3        86.3         64.6         98.1       71.1        83.3
Financial instruments                                             70.4          86.4            85.2         76.2       104.8       111.2       101.5         69.9         73.9       62.6       101.7
Liabilities related to asset held for the distribution to
shareholder                                                                                                                         797.4       772.4                                                   -

CURRENT LIABILITIES                                             2551.9        2260.1          2094.3       2019.1      2105.9      2732.0      2824.4       1967.7       2148.4     2212.2      2357.3

Liabilities associated with assets held for sale                     -                -               -           -            -           -           -           -            -           -           -
TOTAL EQUITY AND LIABILITIES                                    6806.4        6538.5          6635.7       6727.3      6838.0      6801.3      6699.5       5618.8       5909.7     6030.9      6499.5




                                                                                                                                                                                                            8
   PIRELLI & C STATEMENT OF CASH FLOWS
   (€ milion)                                                                             2009                  2010
                                                                                                    of which              of which
                                                                                                     related               related
                                                                                                     parties               parties


   Income from continuing operations before taxes                                           168                   365
   Amortization, depreciation / impairment (losses) reversals of intangible assets and
   property, plant and equipment                                                            219                   229
   Reversal of Financial income                                                             415                   363
   Reversal of Financial expenses                                                          (345)                 (298)
   Reversal of Dividends                                                                     (7)                   (6)
   Earnings (losses) from partecipations                                                     19                   (17)
   Share of earnings (losses) of associates and joint ventures (net of dividends
   received)                                                                                  0                    (0)
   Income taxes                                                                             (90)                 (137)
   Change in inventories                                                                    245                  (110)
   Change in trade receivables/payables                                                    (102)                  128
   Change in other receivables/payables                                                       6                    51
   Change in employee benefit obligations and other provisions                               68                    42
   Other changes                                                                            (64)                   18

A Net cash flows provided by (used for) operating activities                             532.4                 628.1

   Investments in property, plant and equipment                                           (223.2)               (433.1)
   Disposals of property, plant and equipment                                               37.3                  18.0
   Investments in intangible assets                                                         (4.6)                 (4.8)
   Disposals of intangible assets                                                           10.1                   2.8
   Acquisitions of investments in associates and joint ventures                            (13.8)                (16.9)
   Acquisitions of other financial assets                                                   (1.5)                (23.5)          (1)
   Disposal of other financial assets                                                      223.8                      -
   Acquisitions of minorities shares                                                        (4.2)                     -
   Dividends received                                                                        6.9                   5.8

B Net cash flows provided by (used for) investing activities                              30.9                 (451.7)

   Change in share capital                                                                      -                  4.8
   Change in financial payables                                                            (95.8)               (186.4)
   Change in financial receivables                                                          (6.1)               (235.4)
   Change in financial payables/receivables for acquisitions                               (70.1)                (65.8)
   Dividends paid                                                                           (2.3)                (85.1)         (21)


C Net cash flows provided by (used for) financing activities                             (174.3)               (567.9)

   Net cash flows provided by (used for) operating activities                               (8.8)               (8.0)
   Net cash flows provided by (used for) investing activities                                5.2                (1.0)
   Net cash flows provided by (used for) financing activities                                1.2                11.3

   Total cash flows provided by (used for) discontinued operations                         (2.5)                  2.2

D Total cash flows provided by (used for) during the year (A+B+C)                        386.5                 (389.3)

E Net cash and cash equivalents, at beginning of the year                                227.1                 610.8
F Exchange differences on translation of cash and cash equivalents                          (2.4)                  5.3

G Net cash and cash equivalents, at end of the year ( D+E+F) (°)                         611.2                 226.8

   (°) of which:
       cash                                                                               632.1                 244.7
       bank overdrafts                                                                    (21.3)                (18.0)




                                                                                                                                       11
   PIRELLI & C STATEMENT OF CASH FLOWS
   (€ milion)                                                                        9M 2010                      9M 2011
                                                                                                   of which                     of which
                                                                                                related parties              related parties


   Income from continuing operations before taxes                                       271                          390
   Amortization, depreciation / impairment (losses) reversals of intangible assets
   and property, plant and equipment                                                    162                          170
   Reversal of financial expenses                                                       273                          479
   Reversal of financial income                                                        (218)                        (415)
   Reversal of dividends                                                                 (3)                          (1)
   Gains (losses) on equity investments                                                 (17)                          (3)
   Share of net income from associates and joint ventures                                 1                            1
   Income tax                                                                          (110)                        (139)
   Change in inventories                                                                (53)                        (236)
   Change in trade receivables/payables                                                (159)                        (212)
   Change in other receivables/payables                                                  53                           19
   Change in provisions for employee benefits and other provisions                       21                           (7)
   Other changes                                                                        (13)                          10

A Net cash flows provided by (used for) operating activities                         207.8                          56.0
   Investments in property, plant and equipment                                       (225.8)                      (393.9)
   Disposals of property, plant and equipment                                           10.2                         16.7
   Investments in intangible assets                                                     (1.8)                        (2.3)
   Disposals (Acquisitions) of equity investments in subsidiaries                        0.0                        (28.0)
   (Acquisitions) Disposals of equity investments in associates and joint ventures      (2.1)                        (2.5)
   Acquisitions (Disposals) of other financial assets                                    8.3                          7.2
   Dividends received                                                                    2.9                          1.2

B Net cash flows provided by (used for) investing activities                         (208.3)                      (401.6)
   Capital increases (reductions) by non-controlling interests                           0.0                         4.7
   Change in financial payables                                                       (127.9)                      611.1
   Change in financial receivables                                                    (200.6)                      (86.4)
   Financial income (expenses)                                                         (53.6)                      (64.1)
   Dividends paid                                                                      (85.1)                      (83.5)

C Net cash flows provided by (used for) financing activities                         (467.2)                      381.8
   Net cash flows provided by (used for) operating activities                         (33.2)                         0.0
   Net cash flows provided by (used for) investing activities                         (21.4)                         0.0
   Net cash flows provided by (used for) financing activities                          11.3                          0.0
  Total cash flows provided by (used for) discontinued
D operations                                                                          (43.3)                         0.0

  Total cash flows provided by (used for) during the year
E (A+B+C+D)                                                                          (511.0)                        36.2

F Net cash and cash equivalents, at beginning of the year                            610.8                        226.8
G Exchange differences on translation of cash and cash equivalents                       2.5                         (5.1)

H Net cash and cash equivalents, at end of the year (°)                              102.4                        257.8
   (°)    of which:
          cash                                                                        141.3                        286.7
          bank overdrafts                                                             (38.9)                       (28.9)




                                                                                                                                               10
                     PIRELLI DEBT STRUCTURE AS OF SEP 30, 2011

                             Net Financial Position                                                         Gross Debt Maturity

         €/mln                          1,758.1
                                                         819.8
                 Committed Line                                                                                                                       159
                    Drawdown                370

                                                                                                                                                      500
                                                                                                                                          486.7
                              Bond          500                    938.3
                                                                                                                                           370

                                                                                                                                          116.7
            Other Borrowings               888.1                                                                               127.9
                                                                                                                      89
                                                                                                         207.6
                                                                                              187.9

                                           Gross          Fin.     Net Fin.                   10.7%      11.8%       5.1%       7.3%      27.7%      37.4%
                                           Debt          Assets*   position
                                                                                                                                                     2016 &
                                                                                               2011       2012       2013       2014       2015
                       Gross Debt maturity as of Sep. 30, 2011                                                                                       beyond


                                                                    3Q11                                                                   830

                 Total Committed                                    Total                        -         -          -           -
                 Lines Not Drawn                                    830
   (*)Financial receivables, cash and cash equivalents
Pirelli can count on a sound financial structure. Gross Debt is 1.8 billion Euro.
70% is at fixed rate, while 70% is denominated in Euro.
The 500 million Euro Bond issued at the end of February allowed the Debt maturity to be postponed by two years. To date, more than 60% of this Debt expires from 2015.
Pirelli can also access revolving committed credit lines of 0.8 billion Euro expiring in 2015




                                                                                                                                                                         12
PIRELLI & C: FINANCIAL RATIOS
                                                                                                                                               2009
                                                                           2005         2006         2007         2008         2009                        2010
                                                                                                                                            restated***

Redditivity Ratio

EBITDA / NET SALES*                                                          12.5%        12.7%        12.0%         5.4%         9.6%            11.1%      13.0%

EBIT / NET SALES* - ROS                                                       7.8%         8.3%         7.6%         0.9%         4.9%             6.1%       8.4%

NET INCOME / NET EQUITY** - ROE                                               7.4%       -20.37%        7.6%        -13.4%       -0.9%            -0.9%       0.2%

EBIT / NET INVESTED CAPITAL** - ROI                                          5.02%        5.36%         6.3%         1.1%         5.5%             6.3%      11.5%

Indebtness Ratio

NET FINANCIAL DEBT / NET EQUITY - Gearing                                     21%           42%             n.m       43%         21%              21%        22%

Operating Ratio

CAPITAL EXPENDITURE / DEPRECIATION                                            1.19          1.27        1.34          1.49        1.12              1.14      2.00

R&D EXPENDITURE / NET SALES*                                                  3.8%         3.5%         3.6%         3.4%         3.1%             3.4%       3.1%

NET SALES* PER EMPLOYEE (in thousand of Euros)                                    173          172          155          148          151           138           160


* On net sales excluding DGAG
**Average Values
***Pirelli RE and Pirelli Broadband Solutions as discontinued operations




                                                                                                                                                                        15
Dividends
  Dividend Policy: ~40% distribution of cumulative 2012-14 consolidated net profit
 2010 Shareholder Remuneration
 Dividend approved by Pirelli & C. AGM (21 April 2011)


                                                                          DPS (€)                              N° of Shares**               Dividends (€/mln)


                                                                  2010                  2009*                       mln                         2010    Δ % yoy
              Ordinary shares                                    0.1650             0.1595                          475                         78.4

               Savings shares                                    0.2290         0.4466                               12                         2.7
                                                                       (of which 0.2233 for the
                                                                         financial year 2008)
                                                                                                                                                81.1      stable
  *Net of treasury shares: 0.4 mln ordinary shares and 0.4mln savings shares.                                                               93% of parent company
 Coupon Detachment: 23 May, 2011; Dividend Payment: starting from 26 May, 2011



Dividend Trend
               ord. shares         sav. Shares                            DPS ord.         DPS sav.       Total Dividend   Parent company net
                                                     tot. Shares (mln)                                                                          Pay Out        Ex-date
                  (mln)               (mln)                                 (€)              (€)                (€)            inc. (€/mln)

  2010                   475.4               11.8                  487          0.165             0.229               81                  87           93%         23-May-11

  2009                   475.4                11.8                 487          0.1595           0.4466               81                112.6          72%         24-May-10
                                                                                         No dividend distribution
  2008

  2007                   475.5                11.8                 487           0.176           0.8008               93                100.7          93%         19-May-08
                                                                                        No dividend distribution
  2006

  2005                   470.9                12.3                 483           0.231           0.4004              114                139.8          81%         22-May-06

  2004                   470.7                12.3                 483           0.231           0.4004              114                149.6          76%         23-May-05

  2003                   302.2                12.3                 314           0.341           0.4554              109                137.8          79%         24-May-04

  2002                     56.2                3.1                  59            0.88           0.9944               53                 60.2          87%          9-Jun-03

DPS: Dividend per share
PIRELLI & C: EQUITY                                                                                  (€ milion)
                                                                                         Minority
                                                                          Group                      Total
                                                                                        Interests

Equity at December 31, 2009                                                2,175.0          319.7    2,494.7

Equity at December 31, 2010                                                1,990.8           37.2    2,028.0

Translation differences                                                     (111.5)           0.1     (111.4)
Income (loss) for the period                                                 255.3           (4.0)     251.3
Change in fair value of available-for-sale financial assets/derivatives       (6.8)             -       (6.8)
Other changes in continuing operations attributable to net equity            (16.8)             -      (16.8)
Net actuarial gain (loss) on employee benefits                               (10.2)             -      (10.2)
Dividends paid                                                               (81.1)          (2.4)     (83.5)
Acquisition of China Tyre minority interests                                 (10.2)         (17.8)     (28.0)
Venezuela inflation effect                                                    16.2            0.6       16.8
Capital increase                                                                 -            9.4        9.4

Other changes                                                                     0.8          0.3        1.1

Total changes                                                                35.7           (13.8)      21.9
Equity at June 30, 2011                                                    2,026.5           23.4    2,049.9




                                                                                                                  16
PIRELLI & C: CAPEX
                                                                                        2005                      2006                     2007                      2008             2009           2010
(€ milion)
Pirelli Group
. Capex                                                                                             234                      255                     287                     311               225          433
. Capex/ depreciation                                                                               1.2                      1.3                      1.3                    1.6               1.1          2.0

Pirelli Tyre
. Capex                                                                                             208                      224                      262                    285               217          402
. Capex/depreciation                                                                                1.1                      1.2                      1.4                    1.5               1.1          1.9



                                                                                                          Old Plan 2011-2015                         New Plan 2011-2015
                          €/Bln
                                       2011E                                                                             > 0.5                                       < 0.6
                                       Cumulated Capex (w/o Russia)                                                      >1.9                                        <2.2
                                       Russia                                                                              (*)                                       ~0,2
                                       Premium Capacity Growth (Mln pcs)                                               +22,5                                          +24
                                       Russia                                                                           +3,5                                           +8
                                       Total Premium Capacity Growth (Mln pcs)                                            +26                                         +32

                                       Investments by destination (w/o Russia)
                                       Mix (mature plants)                                                               12%                                         16%
                                       Quality (mature plants)                                                            7%                                         10%
                                       Capacity                                                                          56%                                         53%
                                       Others**                                                                          25%                                         21%

                                                                                                          New Plan
                                      Year End Capacity
                                       (mln/pcs)                                          2010A              2011E            2014            2014/2011               2015         2015/2011

                                      Consumer*** w/o Russia                                56                  60              71                +18%                 74            +23%
                                      Russia                                                 -                   -              10                                     10
                                      Industrial                                            5.8                 6               6.4               +7%                  6.8           13%
                        (*) In Old Plan Russia is assumed to have a JV partnership (in 2013 financial investments only) with 2015 purchase (all data consolidated)
                        (**) Logistics, IT, Maintenance, Heath Safety Environment, others
                        (***) In Consumer Capacity is included Motoradial only




                                                                                                                                                                                                                  17
R&D: PIRELLI TYRE vs MAIN PEERS
                                  2005         2006         2007         2008         2009         2010
(€ milion)


Pirelli Tyre
. R&D expenses                           146          147          148          145          133          146

. R&D expenses / Net sales           4.0%         3.7%         3.6%         3.5%         3.3%         3.1%


Michelin
. R&D expenses                           565          591          571          499          506          545

. R&D expenses / Net sales           3.6%         3.6%         3.4%         3.0%         3.4%         3.0%


Continental (Rubber Group)
. R&D expenses                                                                  222          212          223

. R&D expenses / Net sales                                                  2.4%         2.6%         2.2%




                                                                                                                18
                           9M11 PIRELLI TYRE MIX
    SALES BY BUSINESS                        SALES BY SEGMENT
                                           Car
Consumer                                   62%
  70%                                                                 Motorbike
                                                                        8%
                                                                    Steelcord
                                                                    & others
                                                    Truck
               Industrial 30%                                          2%
                                                     28%




    SALES BY CHANNEL                          SALES BY REGION
                                                             Nafta
 Replacement                               Latin
                                                             10% Asia Pacific
     74%                                  America                    6%
                                           34%
                                                                       MEA
                                                                       9%


                 OE                                 Europe
                 26%                                 41%
PIRELLI TYRE P&L DATA BY QUARTER
                                                                   2008   2009    1Q 10   2Q 10   3Q 10   4Q 10   2010    1Q 11   2Q 11   3Q 11
(€ milion)

. Net sales                                                       4100    3993    1110    1215    1234    1213    4772    1349    1412    1465
    Consumer                                                      2801    2828     781     836     847     837    3300     983     959    1024
    Industrial                                                    1299    1165     329     380     387     376    1472     401     418     441
. Ebitda before restructoring costs                                441     538     146     178     173     187     684     210     218     228
. % on net sales                                                  10.8%   13.5%   13.2%   14.6%   14.0%   15.5%   14.3%   15.5%   15.5%   15.6%
    Consumer                                                       282     380     106     122     119     141     488     161     170     172
    % on net sales                                                10.1%   13.4%   13.6%   14.6%   14.0%   16.9%   14.8%   16.3%   17.7%   16.8%
    Industrial                                                     159     158     40      55      54      46      196     49      49      56
    % on net sales                                                12.2%   13.6%   12.3%   14.5%   14.0%   12.3%   13.3%   12.2%   11.7%   12.8%
. Ebit (before restruct. costs )                                   251     346     98      127     122     130     476     156     165     174
. % on net sales                                                  6.1%    8.7%    8.8%    10.5%   9.8%    10.7%   10.0%   11.5%   11.7%   11.9%
    Consumer                                                       139     234     70      85      81      100     335     120     129     131
    % on net sales                                                5.0%    8.3%    8.9%    10.1%   9.5%    11.9%   10.1%   12.2%   13.4%   12.8%
    Industrial                                                     112     112     29      42      41      30      142     36      36      43
    % on net sales                                                8.6%    9.6%    8.7%    11.2%   10.6%   7.9%    9.6%    8.9%    8.6%    9.8%
. Restructuring expenses                                          -100     -37     -2.6    -5.3    -4.5   -10.8   -23.2    -3.2    -4.5    -2.2
Ebit (after restruct. costs)                                       151     309     96      122     117     119     453     152     160     172
. % on net sales                                                  3.7%    7.7%    8.6%    10.0%   9.5%    9.8%    9.5%    11.3%   11.3%   11.7%
    Consumer                                                                                                               117     124     129
    % on net sales                                                0.0%    0.0%    0.0%    0.0%    0.0%    0.0%    0.0%    11.9%   13.0%   12.6%
    Industrial                                                                                                             36      36      43
    % on net sales                                                0.0%    0.0%    0.0%    0.0%    0.0%    0.0%    0.0%    8.9%    8.6%    9.7%


Consumer: Passenger Car, Moto and Controlled Distribution
Industrial : Truck, Agro, Steelcord and Controlled Distribution




                                                                                                                                                  21
PIRELLI TYRE YEARLY DATA
                                                             2008     1Q 09    1H 09    9M 09    2009     1Q 10    1H 10    9M 10    2010     1Q 11    1H 11    9M 11
(€ milion)
Profit & Loss

. Net sales                                                  4100      927     1916     2959     3993     1110     2325     3559     4772     1349     2761     4226
    Consumer                                                 2801      671     1372     2108     2828      781     1617     2464     3300      983     1942     2967
    Industrial                                               1299      256      544      851     1165      329      709     1095     1472      401      819     1259
. Ebitda before restructoring costs                          441       108      241      383      538      146      324      497      684      210      428      656
. % on net sales                                            10.8%     11.6%    12.6%    12.9%    13.5%    13.2%    13.9%    14.0%    14.3%    15.5%    15.5%    15.5%
    Consumer                                                 282       77       168      268      380      106      228      347      488      161      330      503
    % on net sales                                          10.1%     11.5%    12.2%    12.7%    13.4%    13.6%    14.1%    14.1%    14.8%    16.3%    17.0%    16.9%
    Industrial                                               159       30       73       115      158      40       96       150      196      49       98       154
    % on net sales                                          12.2%     11.9%    13.4%    13.5%    13.6%    12.3%    13.5%    13.7%    13.3%    12.2%    11.9%    12.2%
. Ebit before restruct. Costs                                251       61       147      241      346      98       225      347      476      156      320      494
. % on net sales                                             6.1%     6.6%     7.6%     8.1%     8.7%     8.8%     9.7%     9.7%     10.0%    11.5%    11.6%    11.7%
    Consumer                                                 139       42       97       161      234      70       154      235      335      120      248      379
    % on net sales                                          5.0%      6.2%     7.0%     7.6%     8.3%     8.9%     9.5%     9.5%     10.1%    12.2%    12.8%    12.8%
    Industrial                                               112       19       50       80       112      29       71       112      142      36       72       115
    % on net sales                                          8.6%      7.4%     9.2%     9.4%     9.6%     8.7%     10.0%    10.2%    9.6%     8.9%     8.8%     9.1%
. Restructuring expenses                                    (100.0)   (3.5)    (9.7)    (18.1)   (37.0)    -2.6     -7.9    -12.4    (23.2)   (3.2)      -8      -9.9
Ebit                                                         151       58       137      223      309      96       217      334      453      152      313      484
. % on net sales                                             3.7%     6.2%     7.1%     7.5%     7.7%     8.6%     9.3%     9.4%     9.5%     11.3%    11.3%    11.5%
. Earnings (losses) from investments                          28        4        4        4        4        0        0        0        0        0        -1       -2
. Operating profit (loss) incl. earnings from investments    179       61       141      227      313      96       218      334      453      152      312      483
. Financial income (expenses)                                -83       -23      -43      -60      -76      -16      -39      -53      -66      -17      -47      -65
. EBT                                                         96       38       98       167      237      79       179      282      387      136      265      417
. Income taxes                                               -70       -23      -43      -76      -90      -29      -69      -105     -134     -47      -102     -162
. Tax rate                                                   73%      61%      44%      46%      38%      37%      38%      37%      35%      35%      39%      39%
. Net Income (loss)                                           26       15       54       91       147      50       110      177      253      89       163      255

Cash Flow

. Operating cash flow                                         -8                                  562      -52      69       134      369      -207     -119     -161
. Net operating cash flow                                   (161)                                 396     -99.5     42.1    -30.9     168     -269.7   -250.8    -364

Capex and R&D*

. Capex                                                      285                                  217      49.9    135.4    226.9     439      96.8    234.1    396.2
. Capex/Amort. & Depreciation                                1.50                                1.13     1.03     1.37     1.51     2.11     1.80     2.17     2.45
. R&D expenses                                               145                                  133               70.8    109.3     146               84.9    126.4
. R&D expenses / Net sales                                   4%                                   3%       0%       3%       3%       3%       0%       3%       3%
Employees and Factories

. Employees (number at period-end)                          28,601    27,304   27,241   27,283   27,481   30,054   30,989   31,050   29,573   30,344   31,643   31,815
. Factories                                                   23       23       23       23       20       21       21       20       20       20       20       20
Consumer: Passenger Car and Moto tyres
Industrial : Truck and Agro Tyres

* R&D expenses fully included in P&L




                                                                                                                                                                         22
PIRELLI TYRE: REVENUES DRIVERS
                                   2008           1Q 09     2Q 09     3Q 09     4Q 09     2009           1Q 10     2Q 10     3Q 10     4Q 10     2010           1Q 11      2Q 11      3Q 11
(€ milion)

Pirelli Tyre
                      D Volume            -6.0%    -18.1%    -13.3%     -3.3%     15.6%          -5.8%     17.4%      7.5%      1.8%      3.4%          7.3%       6.1%       1.2%          2.8%

                     D Price/Mix          7.3%       6.9%      5.6%      4.7%     -1.7%          4.2%       1.4%     10.1%     12.3%     11.3%          8.9%      15.9%      15.8%         18.6%

             D Revenues organic           1.3%     -11.2%     -7.7%     1.4%     13.9%           -1.6%     18.8%     17.6%     14.1%     14.7%      16.2%         22.0%      17.0%         21.4%

                D Exchange rate           -2.8%     -2.7%     -1.5%     -3.3%     4.8%           -1.0%      1.0%      5.3%      4.2%      2.6%          3.3%       2.7%       -3.7%        -2.7%

                    D% yoy Tot.           -1.5%    -13.9%     -9.2%     -1.9%     18.7%          -2.6%     19.8%     22.9%     18.3%     17.3%          19.5%     24.7%      13.3%         18.7%

   Consumer

                      D Volume            -5.8%    -14.7%     -9.8%      1.7%     -0.9%          -2.7%     14.9%      6.2%      0.8%      4.2%          6.4%       9.0%       2.6%          4.3%

                     D Price/Mix          6.5%       6.6%      5.1%      3.6%     16.4%          3.9%       1.2%      8.7%     10.7%      9.3%          7.6%      14.6%      16.2%         18.4%

             D Revenues organic           0.7%      -8.1%     -4.7%     5.3%     15.5%           1.2%      16.1%     14.9%     11.5%     13.5%      14.0%         23.6%      18.8%         22.7%

                D Exchange rate           -2.8%     -2.3%     -1.3%     -2.2%     5.7%           -0.3%      0.4%      4.2%      3.6%      2.7%          2.7%       2.3%       -4.1%        -1.8%

                    D% yoy Tot.           -2.1%    -10.4%     -6.0%      3.1%     21.2%          0.9%      16.5%     19.1%     15.1%     16.2%          16.7%     25.9%      14.7%         20.9%

   Industrial

                      D Volume            -6.6%    -25.7%    -20.9%    -13.4%     14.0%      -12.6%        24.1%     10.4%      4.2%      1.6%          9.4%       -0.7%      -1.9%        -0.5%

                     D Price/Mix          9.1%       7.2%      6.8%      7.0%     -3.5%          5.0%       1.8%     13.7%     16.2%     15.7%          12.3%     19.0%      14.9%         19.0%

             D Revenues organic           2.6%     -18.5%    -14.1%     -6.4%    10.5%           -7.6%     25.9%     24.1%     20.4%     17.3%      21.7%         18.3%      13.0%         18.5%

                D Exchange rate           -2.7%     -3.5%     -2.2%     -5.8%     2.9%           -2.7%      2.5%      7.9%      5.7%      2.4%          4.6%       3.6%       -3.0%        -4.6%

                    D% yoy Tot.           -0.1%    -22.0%    -16.3%    -12.2%     13.4%      -10.3%        28.4%     32.0%     26.1%     19.7%          26.3%     21.9%      10.0%         13.9%




                                                                                                                                                                                      23
PIRELLI TYRE: EBIT BRIDGE
                                  FY09       1Q10         2Q10         3Q10         4Q10         FY10         1Q11         2Q11         3Q11
                                   vs         vs           vs           vs           vs           vs           vs           vs           vs
(€ milion)                        FY08       1Q09         2Q09         3Q09         4Q09         FY09         1Q10         2Q10         3Q10

Ebit before restructoring cost
                                    250.7           61       85.5         94.3        104.7        345.5         98.1        127.1        121.5
at the beginning of the period

Price mix                            94.4           6.1      86.6        107.3        131.9        331.9        128.1        154.3        177.4

Volume                               -56.7      50.8         25.2             5.2      19.8          101         28.7             8.8      13.9

Cost of inputs                       54.6       -14.1        -74.9        -91.1       -137.7       -317.8        -95.2       -145.5       -146.7

Efficiencies                         35.6           7.6          5.3      14.4         22.8         50.1         15.6         22.1         17.3

Depreciation/other costs             -30.2       -8.1         -2.8        -11.3        -15.4        -37.6        -22.2            3.3       -5.1

Exchange rate                         -2.9       -5.2            2.2          2.7          3.5          3.2          2.5       -5.5         -4.2

Ebit before restructuring costs
                                    345.5       98.1        127.1        121.5        129.6        476.3        155.6        164.6        174.1
at the end of the period




                                                                                                                                                   24
PIRELLI TYRE: NFP
                                                                 2008      2009      1Q 10      2Q 10      3Q 10      4Q 10      2010      1Q 11      2Q 11      3Q 11
(€ milion)

Operating income (EBIT) before restructuring expenses              250.7     345.5       98.1     127.1      121.5       129.6     476.3      155.6      164.6      174.1
Total amortizations & depreciation                                 190.5     192.5       48.3      50.4       51.5        57.8       208       53.9       53.8       54.3
Investments in Property, plant and equipment/Intangible assets    -294.2    -217.4      -47.6     -84.5      -88.1      -184.8      -405      -94.5     -133.8     -160.3
Change in working capital/other                                   -165.1     240.9     -132.2        37       -9.9       194.3      89.2     -291.6        4.5      -99.7

OPERATING CASH FLOW                                                -18.1     561.5      -33.4       130         75      196.9      368.5     -176.6      89.1       -31.6

Financial expenses/tax expenses                                   -152.9    -166.1      -45.6      -61.7      -50.8      -42.7    -200.8      -63.6      -85.4      -78.3

NET OPERATING CASH FLOW                                             -171     395.4      -79.0      68.3       24.2      154.2      167.7     -240.2        3.7     -109.9

Dividends paid                                                     -93.2     -66.5                 -156                  -70.6    -226.6                -121.7          0
Acquisition of Speed S.p.A.                                         -409                                                                                                0
Acquisition of minority interests (China)                                                                                                                             -28
Capital Increase                                                                                                                                          500           0
Purchase of minorities in Turkey and asset sales                   -32.3        11                                                                                      0
Cash out for restructuring expenses                                -15.3     -62.4      -22.2       -8.3         -7        -2      -39.5       -1.8      -5.7        -1.6
Exchange differences/others                                         13.6       -38          6        5.6       -9.3      13.5       15.8       -7.1      18.8         8.4

NET CASH FLOW                                                     -707.2     239.5      -95.2      -90.4       7.9       95.1      -82.6     -249.1     395.1      -131.1


NET DEBT                                                          1266.8    1027.3    1122.5     1212.9       1205     1109.9     1109.9      1359      963.9       1095




                                                                                                                                                                            25
                                        TYRE MARKET WATCH: MARKET VOLUMES TREND

                     PASSENGER CAR & LIGHT TRUCK TYRE MARKET TREND


        D % YoY             FY 09      2010                                                                               2011
                                          FY            JAN        FEB        MAR            1Q     APR    MAY    JUN    2Q      1H    JUL    AUG   SEP    3Q     9M     OCT


Europe
 OE                         -19%        13%            10%         14%         0%            7%     4%     6%     0%     3%      7%    -4%    12%   -5%    3%     4%     8%

 Replacement*               -4%          8%            14%         13%        -1%            8%     -3%    8%     0%     1%      4%    0%     11%   1%     6%     5%     3%


Nafta
 OE                         -32%        39%            16%         14%        19%            16%    2%     4%     1%     2%      9%    1%     9%    8%     8%     8%     9%

 Replacement                -3%          4%            14%         2%          5%            7%     -3%    -10%   -1%    -5%     1%    -1%    3%    0%     -2%    0%     -5%


Mercosur
 OE                         -1%         13%             7%         21%        -1%            8%     6%     7%     7%     7%      8%    7%     6%    -5%    3%     6%     -8%

 Replacement                 7%         11%             -6%        2%          0%            -2%    -6%    8%     -5%    -1%     -2%   -5%    3%    4%     3%     0%     -4%


China
 OE                         47%         31%            11%         6%          6%            7%     -1%    -3%    4%     -1%     4%    4%     10%   1%     5%     4%


 Replacement                20%         31%                                                  35%                                                           11%    13%


Japan
 OE                         -32%        20%             -7%        -6%        -57%           -26%   -60%   -31%                        -16%   1%    -6%    -5%    -22%

 Replacement                -8%          9%            16%         9%          3%            8%     22%    44%    7%     23%     15%   7%     2%    11%    4%     11%    4%


 *excluding Russia



                                                                TRUCK TYRE MARKET TREND


        D % YoY             FY 09      2010                                                         2011
                                          FY            JAN        FEB        MAR            1Q     APR    MAY    JUN    2Q      1H    JUL    AUG   SEP    3Q     9M     OCT

Europe
                            -64%        57%            83%         80%        70%            77%    49%    60%    23%    42%     57%   35%    26%   16%    24%    40%    8%
 OE*
                            -14%        18%            17%         29%         7%            16%    13%    20%    2%     11%     14%   -2%    -6%   -16%   -9%    5%     -11%
 Replacement*

Nafta
                            -36%        30%            58%         53%        61%            57%    53%    66%    54%    57%     59%   40%    54%   62%    52%    57%    57%
 OE
                            -13%        18%            15%         32%        24%            23%    2%     -6%    3%     0%      10%   -10%   5%    3%     -1%    6%     5%
 Replacement

Mercosur
                            -25%        47%             9%         11%        -12%           1%     -15%   14%    13%    4%      3%    10%    27%   9%     16%    8%     9%
 OE
                            -9%         23%            11%         18%         7%            12%    -3%    7%     1%     2%      6%    -12%   -6%   1%     -6%    2%     1%
 Replacement

China
                            28%         53%            21%         1%         11%            11%    1%     -18%   -25%   -13%    1%    -23%   -9%   -12%   -15%   -10%
 OE
                                        10%                                                  2%                                                            -1%    -2%
 Replacement

Japan
                            -49%        37%             7%         5%         -53%           -15%   -65%   -24%                        3%     13%   18%    11%    -9%
 OE
                            -21%        14%            24%         0%         -18%           21%    15%    16%    10%    14%     17%   20%    71%   24%    38%    26%    16%
 Replacement

 *excluding Russia

Source: Pirelli estimates
Disclaimer:
Market trends are published every month on Pirelli web site for information purposes only.
Market trends do not represent the performance of Pirelli Tyre.
Trends can be revised in line with the updated information.
                                                                                                                                                                                27
                                                      RAW MATERIALS
                                             RAW MATERIALS PRICE TREND                                                                    5,251
                                                                                                                                                   4.671     4.565
                                                             Brent Oil (in usd/bbl)                                      4.254
                                                             Natural Rubber (in usd/tons)
                123
                           117                                                                                                                       118
                                                                                                                                  3.380                        112

     96                                       99                                2.513        3.096   3.022       3.148
               2.943                                                                                                                      105
                          2.973                                                                                                                                            0.485927 0.596981 0.229805 0.424417
     2.653
                                                                      1.837                                                  87     80                                     0.134911 0.196005 0.024705 0.111116
                                           2.531          1.523                   76         77        80
                                      57      1.330                                                                77
                                                                       69               63
                                  1.553      45            60                      1.801                                                                                   0.531506 0.656329 0.535395 0.573239
                                                                                                                                                                           0.020312 -0.05748   0.0276 -0.00211

Natural Rubber: Sicom                                                                                                                                                      -0.14512 0.138019 0.13035 0.042567
Brent: www.oilnergy.com                                                                                                                           In Italic Year Average
                                                                                                                                                                           -0.02931 0.065365 0.011521 0.019764

                              9M 2011 MIX (BASED ON PURCHASING COST)                                                                                                       0.006296   -0.18274
Raw mat. costs                            Natural Rubber
on sales: 43%                                                                                        Synth. Rubber 25%
                                               36%
                                                                                                           (+2 pp yoy)                                                     -0.65334 -0.24378
                                            (+3 pp yoy)
                                                                                                                                                                            0.15035 0.161702 0.097744 0.135959



                                                                                                             Carbon black
                                                                                                                 11%
                                                                                                              (-1 pp yoy)
                                               Steelcord
                                                  7%
                                               (-1 pp yoy)                                    Chemicals
                                                                  Textiles 9%
                                                                  (-1 pp yoy)                   12%
                                                                                              (-2pp yoy)

                                                                                                                                                                           0.485927 0.596981 0.229805 0.424417
                                                                                                                                                                           0.134911 0.196005 0.024705 0.111116

                                                                                                                                                                           0.531506 0.656329 0.535395 0.573239
                                                                                                                                                                           0.020312 -0.05748   0.0276 -0.00211

                                                                                                                                                                           -0.14512 0.138019 0.13035 0.042567
                                                                                                                                                                           -0.02931 0.065365 0.011521 0.019764

                                                                                                                                                                           0.006296   -0.18274


                                                                                                                                                                           -0.65334 -0.24378
                                                                                                                                                                            0.15035 0.161702 0.097744 0.135959
          PIRELLI TYRE: 19 MANUFACTURING PLANTS
          IN 11 COUNTRIES (AS OF SEPTEMBER 2011)
                                                   Italy                   Germany
                        U.K.            Bollate (MI)             Car   Breuberg        Car/Moto
                                        Settimo Torinese   Car/Truck   Merzig          Steelcord
             Burton               Car   Figline Valdamo    Steelcord
             Carlisle             Car
                                                                                                                   Turkey
                                                                                                           Izmit         Car/Truck
                                                                                                                         Steelcord
       U.S.A
Rome             Car                                                                                           Romania
                                                                                                           Slatina   Car/Steelcord




   Venezuela
Guacara            Car
                                                                                                                   China
                                                                                                       Yanzhou          Car/Truck
               Brazil
   Campinas                     Car
   Feira de Santana       Car/Truck               Argentina                             Egypt
   Santo André           Truck/Agro
   Gravatai              Moto/Truck
   Sumaré                 Steelcord            Merlo           Car                Alexandria       Truck
2012 Financial Calendar

Date                      Title
                          Board of Directors meeting to review the budget and the consolidated financial statement for the
March 8, 2012
                          year ending December 31, 2011

                          Board of Directors meeting to review results for the three months ending March 31, 2012 and
May 10, 2012
                          Shareholder Meeting to approve results for 2011 sole call


July 26, 2012             Board of Directors meeting to review results for the six months ending June 30, 2012



November 7, 2012          Board of Directors meeting to review results for the nine months ending September 30, 2012




                                                                                                                             34
Contacts - IR Team

Investor Relations Office
Address                V.le Sarca, 222 -20126 Milano

Tel                    +39 02 6442 2949

Fax                    +39 02 6442 4686

Mail

Map


Valeria Leone          Investor Relations Officer      Sonia Bianchini   Investor Relations assistant
Cell                   +39 335 6335111                 Tel               +39 02 6442 2949

Tel                    +39 02 6442 2524                Fax               +39 02 6442 4686

Fax                    +39 02 6442 4686                Mail

Mail




Aldo Perrone           Investor Relations Manager
Cell                   +39 335 6339603

Tel                    +39 02 6442 51525

Fax                    +39 02 6442 4686
Mail



Francesco Brilli       Investor Relations              Fabio Ruffini     Investor Relations
                       Fin. Analysis - Benchmarking                      Fin. Analysis - Benchmarking
Tel                    +39 02 6442 57557               Tel               +39 02 6442 37690

Fax                    +39 02 6442 4686                Fax

Mail                                                   Mail




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