PEERS & MARKETS

Major international markets were up in the week from July, 30 to August 3, 2012 (Milan +3.9%, +2.6% Frankfurt, Paris +2.9%, +2.8% in London, Madrid +2.1%). After an initial negative reaction to the words of the ECB Governor, Draghi, (economic interventions subject to a request for aid from Countries) markets recovered at the end being positively impacted by U.S. employment data and the Spanish Prime Minister Rajoy willing to ask the ‘EFSF intervention in case of need.

Similar trends for the European Auto&Parts (+2.6% Stoxx the car).

Pirelli ended the week at € 8.58 outperforming the sector with a +6.5% performance. Daily average traded volume was just over 5 million pieces.

UBS has initiated coverage of the stock with a “BUY” rating and a target price of 10 €. The broker has a positive view on Pirelli Premium strategy and consider the stock “highly attractive”. The consensus target price now stands at 10.5 € with 90% of coverage with a Buy rating.

PEERS & MARKETS

The main European stock markets were up in the week from the 27th to the 2nd of March, 2012 (Milan +2.5%, London -0.5%, Frankfurt +0.8%, Paris +1%). Investors reacted positively to the liquidity injection by the ECB into the banking sector (three years, 1% interest rate), which benefited the bond market (EU government bond yields generally retreated in the week).

Auto & Parts stocks were slightly down (Stoxx index -0.6%), due to uncertainties related to rising oil prices (Brent futures $123/barrel).

Pirelli closed at €7.895 (-0.4%, in line with the sector). Broker Mediobanca upgraded the stock’s Target Price from €8 to €10, confirming the Outperform rating. According to the analyst, Q4 2011 results should confirm the good profitability trend, thanks to price/mix growth which should compensate weak volumes.

Tyre peers’ stocks performance was subdued: Michelin (-2%), Nokian (-0.4%). Continental outperformed (+2.6%) after presenting FY11 results and an optimistic market outlook for FY12.

PEERS & MARKETS

It was a very volatile week (from the 9th to the 13th) on the international stock markets (London -0.2%, Paris +1.9%, Frankfurt +1.4%) on the continuing rumors about EU countries debt de-rating by the main agencies.

Piazza Affari (+2.5%) emerged as the best performing Market in Europe thanks to the good quarterly auction of Bot. Italian bonds was placed with a yield down to 2.735%, dropped by a half since last December.

Pirelli Investor Relations