REGIONAL & LEAN

Andrea PirondiniBU Truck

2

3

AGENDA

TREADING ON A WIDER AND FASTER ROAD

DRIVING INNOVATION, TECHNOLOGY AND PRODUCTS

HEADING TOWARDS OUR GROWTH TARGETS

4

TRUCK TYRE MARKET: TRENDS IN DEMAND

CAGR ‘05-’10 All Steel Xply

Total Truck

CAGR ‘10-’15

3.2%3.2%

Radialization

2.6%2.6%

33

-6.4%-6.4%

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘10‘09 ‘11 ‘12 ‘13 ‘14 ‘15

64% 85%

5.8%5.8%

-4.6%-4.6%

75%

5.8%5.8%

72 70 75 8089 93 101 109 114

124107

132 140 148 156 16440 42

45 46

5051

5050 42 40

33

3836

3432

29

112 112120 126

139144

151159 156 164

140

170176

182188

193

5

A UNIQUE FOOTPRINT TO CAPTURE GROWTH

China

South

America

Southern EU

and Near-East

North Africa

Newentry

# 2

# 1

# 1

Leader in Pirelli key markets Enhanced product positioning and

Focus on Premium Green performance

Pirelli Focus

Russia

FastGrowth

Mature

Pirelli Volumes (all steel)

RDE

EUROPE: price premium focusMEA: defend leadership and

premiumAPAC: gain share in tubeless and

premiumLATAM: leadership and premium

74%82%

86%

26% 18% 14%

8.3%

8.3%

2.2%

2.2%

2005 2010 2015

7.3%

7.3%

Emerging markets continue to deliver strong growth in All Steel:

economic developmentradialization

7.5%

7.5%

2.1%

2.1%

Market By Area (all steel)

Mature

RDE

52% 33%

48%

67%

73%

27%

2005 2010 2015

5.8%

5.8%

Mln pcs

CAGR ‘10-’15

6

MARKET SEGMENTATION AND PIRELLI PREMIUM

DLTC: Dual Layer Tread Compound

Hexa: Hexagonal Bead Wire Package

Slim pack/ High Penetration Steel Cords

Green Materials and Structures

SATT: Spiral Advanced

Technology for Truck

Technology Packages

New Products *: % of Total Sales

2005 2010 2015

25 4555

* Products launched in the previous 3 years

45

Customer Lifecycle

ValueEnergy Tubeless China

Black Diamond North Africa

Multi Lives CityBus Latam

Highway Regional On/Off City Winter

Premium

New Product Line

Mid

Budget

7

First Life Regr1 Retread1 Regr2 Retread2

CUSTOMER LIFECYCLE VALUECUSTOMER LIFECYCLE VALUE

PRODUCT INNOVATION: GREEN PERFORMANCE

low rolling resistance

=fuel saving >4%

lower CO2 emissionslower CO2 emissionsEnhanced tyre lifecycle: improved mileage and environmental impact

PERFORMANCE AREA

GREEN AREA

01 series

reference

Retreadability & MileageRetreadability & Mileage

towards 1,000,000 Km

Fuel SavingFuel Saving

8

TRUCK TYRE PRODUCTION CAPACITY

CAPACITY RENEWAL:By 2015 50% of capacity installed in the last 10 years*.

Production by Area 2010-15

RDE91%

Mature9%

* All Steel Capacity

Factories

YanzhouBrazil

Alexandria

Izmit

Feira de SantanaSanto AndrèGravatai

Settimo Torinese

Italy

ChinaLocal-for-Local: 85%

EgyptTurkey

Yanzhou

125 140100

2013 20152010

Factory Scale Growth *

9

STEELCORD: PIRELLI WIRE TECHNOLOGIES

GLOBAL COVERAGE AND DISTINCTIVE KNOW HOW

GLOBAL COVERAGE AND DISTINCTIVE KNOW HOW

Slatina

Izmit Yanzhou

Turkey

Figline Valdarno Merzig

Worldwide Presence

Italy

Romania

Germany

Brazil

Sumarè

Turkey China

10

A DIFFERENT TRACK RECORD

* 2006-2009 company figures; 2010 consensus expectations

100 = 2006

Top European Players*

CYCLE MANAGEMENT FLEXIBILITYCYCLE MANAGEMENT FLEXIBILITY

Geography Fast Response Lean StructureCore Business

FocusSupply Chain Integration

Sales Trend

8.4% 8.1% 8.6% 9.6% >9.5%

6.6% 7.6%

2.4%

-0.9%

4,4%

Ebit margin (%)

100

107103

10799

95 81

122

98

2006 2007 2008 2009 E2010

Top European Players*

Pirelli Industrial

Pirelli Industrial

2006 2007 2008 E20102009

11

PIRELLI INDUSTRIAL: GROWTH & INVESTMENT STRATEGY

Investments: €/Mln W

200200

400400

Incl:Pcs Tot. Truck + Agro Rear

+20%

+15%

Mln pieces

5.8

7.08.0

Truck: +30% by 2013

Truck: +30% by 2013 Agro: +20% by 2013Steelcord: +10% by 2013

Truck: +40% by 2013Steelcord: Greenfieldoperative by 2011

Egypt

Mercosur

China

Steelcord: +30% by 2013

Romania

Agro: GreenfieldOperatonal by 2013

Russia

New Initiatives Year End Capacity

2010 2013 2015

12

PIRELLI INDUSTRIAL SEGMENT: ECONOMICS

>9.5% 11÷12%

€/bln

+9.4%+9.4%

REVENUE GROWTH EBIT MARGIN

2010E2010E

2013E2013E

> 1.4> 1.4

~1.9~1.9

2009A2009A

1.21.2

2011E2011E

> 1.6> 1.69.6%

~10%

2010E2010E

2013E2013E

2009A2009A

2011E2011E

TruckTruck

AgroAgro

10%10%

90%90%

12%12%

88%88%

11%11%

89%89%

11%11%

89%89%

CAGR

13

INDUSTRIAL EBIT INDEX BRIDGE 2010-2013

Depreciation/ others

EfficienciesPrice/mix Raw materials

& cost of inputs

Volume EBIT 2013EBIT 2010

index “150”(20)30

100

index “100”60

(120)

Index “100” = EBIT 2010

14

PIRELLI INDUSTRIAL SEGMENT: SUMMARY

Consistent Profitability

Lean & Focused

Unique Geography

15

DISCLAIMER

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