Sustainability Channel

The board of directors of pirelli & c. Spa approves 2009 financial statements

Milan, 10 March 2010 - The Board of Directors of Pirelli & C. SpA, which met today, reviewed and approved 2009 draft financial statements.

PIRELLI & C. SPA

• PARENT COMPANY RETURNS TO PROFIT WITH 112.6 MILLION EUROS IN NET PROFIT (NET LOSS OF 189.5 MILLION EUROS IN 2008)

• BOARD TO PROPOSE DISTRIBUTION OF A DIVIDEND OF 0.0145 EUROS PER ORDINARY SHARE AND 0.0406 EUROS PER SAVINGS SHARE

PIRELLI & C. GROUP

• 2009 REVENUES: 4,462.2 MILLION EUROS (-3.3% ON A LIKE-FOR-LIKE BASIS), COMPARED WITH A TARGET OF MORE THAN 4.3 BILLION EUROS

• EBIT POST RESTRUCTURING CHARGES QUINTUPLED TO 217.4 MILLION EUROS, (43.2 MILLION EUROS IN 2008);

EBIT MARGIN 4.9%, BETTER THAN TARGET OF 4.5% DESPITE THE IMPACT OF ADDITIONAL RESTRUCTURING CHARGES OF APPROX. 50 MILLION EUROS COMPARED WITH 30 MILLION EUROS INITIALLY FORECAST IN 2009-2011 PLAN

• ATTRIBUTABLE NET RESULT RETURNS TO PROFIT OF 22.7 MILLION EUROS, COMPARED WITH A LOSS OF 347.5 MILLION EUROS IN 2008; TOTAL NET RESULT NEGATIVE FOR 22.6 MILLION EUROS, SIGNIFICANTLY IMPROVED OVER 2008 LOSS OF 412.5 MILLION EUROS

• NET DEBT NEARLY HALVED: 528.8 MILLION EUROS (1,027.7 MILLION EUROS IN 2008) COMPARED WITH THE INITIAL TARGET OF 1 BILLION EUROS, WHICH HAD ALREADY BEEN IMPROVED AT THE END OF Q3 TO 700 MILLION EUROS

PIRELLI TYRE

• 2009 REVENUES: 3,992.9 MILLION EUROS (-1.6% ON A LIKE-FOR-LIKE BASIS COMPARED WITH 4,100.2 MILLION EUROS IN 2008) COMPARED WITH A TARGET OF 3,900 MILLION EUROS (ALREADY IMPROVED AT THE END OF Q3)

• EBIT POST RESTRUCTURING CHARGES: 308.5 MILLION EUROS, MORE THAN DOUBLE THE 150.7 MILLION EUROS OF 2008;

EBIT MARGIN 7.7% (3.7% IN 2008), HIGHER THAN THE TARGET OF AT LEAST 7% (WHICH HAD BEEN IMPROVED AT THE END OF Q3)

• IN 2009 OPERATING CASH FLOW POSITIVE FOR 561.5 MILLION EUROS (-18.1 MILLION EUROS IN 2008)

• NET DEBT APPROX. 1 BILLION EUROS POST DIVIDENDS, COMPARED WITH A TARGET OF 1.3 BILLION EUROS BEFORE DIVIDENDS

2010 TARGETS

• PIRELLI & C. GROUP: REVENUES 4.7/4.8 BILLION EUROS, EBIT MARGIN 6.5%/7%

• PIRELLI TYRE: REVENUES +6%/+8%, EBIT MARGIN TENDENTIALLY IN LINE WITH 2009

NEW 2011-2013 THREE-YEAR PLAN TO BE PRESENTED BEFORE THE END OF 2010

Cinturato leader of Green Performance

The Cinturato P7 and P6 passed the tests carried out by ADAC with flying colours. ADAC is the most important and prestigious automobile club in both Germany and Europe, with over 19 million members.

So Pirelli confirms its leadership in terms of performance, safety and eco-compatibility, demonstrating yet again to have made the philosophy and driving values of “Green Performance” its own.

The test results, which have also been distributed through the automobile clubs of Austria and Switzerland (the OAMTC and TCS), show how the Cinturato P7 and P6 are extremely reliable tyres and, therefore, considered strongly recommendable to users.

During the tests, the Pirelli Cinturato P7 turned out to be the best tyre that marries a high level of performance in both the wet and dry with low rolling resistance, greater mileage and reduced sound emission. This is the result of Pirelli’s approach to green performance, which has permitted the company to conquer a position of leadership by combining safety, performance and eco-compatibility.

There were similar results for the Cinturato P6, which not only beat all tyres in its tests, but it is also the only cover to be able to take its place in the Green Performance area. (see graph).

From Nigeria an award for Pirelli

Pirelli is also the top tyre brand of the year in Nigeria.

The news arrived from the city of Lagos, where on 21 January an awards ceremony took place for the presentation of the Nigeria Auto Media Awards, the competition organised by the specialised press for the car and transport sector.

For the tyre category, the title ‘2009 Tyre Brand of the Year’ was won by Pirelli, present in Nigeria through its distributor The Infinity Group which, with its sales organisation, after sales network and competence, contributed to the achievement of the award.

The special ‘Diamond Jewel Award’ was received by Lorenzo Arrigone, Pirelli Area Manager – West Africa.

Reads the article on the Nigeria Auto Media Awards:

www.sunnewsonline.com