PEERS & MARKETS

The week from February 11^th to 15^th was mixed for major international stock markets (Milan -0.8%, London +1.0%, Frankfurt -0.8%, Paris +0.3%). The expectations for the outcome of the G20 meeting in Moscow (global currency balance the main topic on the agenda) and the not-encouraging data of fourth quarter GDP in Italy, France and Germany (all down QoQ and lower than expected) feed the uncertainty and volatility in the markets.

European Auto&Parts sector was down after previous week’s positive performance (-1.6% Stoxx Auto, +4.4% YTD). Among the major OEMs Renault and Peugeot were in countertendency after 4Q FY-2012 results above analysts’ expectations: +6.7% and +10.4%, respectively, the weekly return.

European tyre sector was also mixed. Pirelli ended at € 8.71 (-2.4%, +1.1% Continental, Michelin -6.5%). Low activity on the stock with an average daily trading volume of approximately 1.9 million shares (-30% vs. the average of the last 3 months). In the last quarter, the stock gained 6.2% in line with the performance of the Milan Stock Exchange.

PEERS & MARKETS

The week from 26 to 30 November 2012 was a positive one for major European markets (Milan +1.1%, London +0.8%, Frankfurt +1.3%, Paris +0.8%) thanks to the agreement on economic aid package for Greece: Eurozone Finance ministers have given the go-ahead to 34.4 billion euro to the Greek Government. The positive environment was also supported by European macroeconomic data as the Germany labour data and Economic Sentiment Index in Europe resulted better than expected in November.

Auto&Parts sector was also up by 3.1%, despite the not-encouraging data on European Commercial Vehicles registrations in November: compared to the same month of 2011 there was a decline of 9.4% to 147,000 units.

Pirelli ended the week at € 8.92 up by 5.3% with an average daily trading volume of about 1.8 million. The stock, with a YTD performance of 37.1% is still one of the top 10 blue chip in Milan Stock Exchange with a performance year-to-date vs FTSE Mib Index of +32.4 percentage points.

PEERS & MARKETS

Main European stock markets were up on the week from October 29 to November 2, 2012 (Milan +1.2%, London +1.1%, Frankfurt +1.8%, Paris +1.7%, +2.5% Madrid). Stock exchanges benefited from U.S. October macroeconomic data on Consumer Confidence (the highest since 2008) and Manufacturing (more than 50 points, the threshold of the recession) which were both above expectations.

Auto & Parts sector delivered positive returns (+3.8% Stoxx Auto) thanks to a number of encouraging quarterly results and good market data for the U.S. market: car sales were up 7% yoy in October with Premium European OEMs showing a double-digit growth (+15 %).

Also european tyre stocks were positive following the good reporting season with Pirelli up by 5.2% at € 8.97 and an average daily trading volumes of about 2.7 million. The stock continues to be among the 10 top-performers in the FTSE-Mib thanks to a YTD performance of +37.9%.

Average Target Price was unchanged in the week at €10.3 (15% above Friday’s close price), as well as the percentage of analysts with a positive recommendation on the stock, 91% of total.