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

Sustainability: Pirelli enters the ECPI ethical finance index

Since December, Pirelli & C. has been in the ethical finance index ECPI Ethical Index EMU, the classification by E. Capital Partners (ECPI), the rating company leader in socially responsible investments (SRI).

The index includes the 150 companies of greater capitalisation of the EMU market (Economic and Monetary Union), who have been found to be leaders of sustainability as a result of the screening, conducted in line with the parameters of ESG (Environmental, Social, Governance), for the assessment of environmental risk, social impact and Corporate Governance structure.

Subjected to the screening, Pirelli was inserted in the ECPI Ethical Index EMU as well as in the investable universe of the ECPI Ethical Index Global and the ECPI Ethical Index Euro.

Rating and ECPI Indices also appear on the Italian Stock Exchange site, ethical finance section: http://www.borsaitaliana.it/speciali/finanza-etica/case-history/casehistory/ecpi.htm

IN THE FRONT LINE FOR EQUAL OPPORTUNITY

Yesterday, institutions and companies met at the headquarters of Assolombarda, Milan, in support of equal opportunity. Diana Bracco, President of the Sodalitas Foundation, presented the ‘Document for equal opportunity and equality at work’, a declaration of intent for the diffusion of a business and political culture of human resources free of discrimination and prejudice and capable of enhancing talent in all its diversity.

Promoted by the Sodalitas Foundation, AIAF (Associazione Italiana Imprese Familiari), AIDDA (Associazione Imprenditrici Donne Dirigenti d’Azienda), Impronta Etica, UCID (Unione Cristiana Imprenditori Dirigenti), the Ufficio Nazionale Consigliera di Parità with the support of the Ministry of Work, Health and Social Policies and the Ministry for Equal Opportunity, the Document provides a picture of reference evaluation to guide companies adherent to its application, containing non-detailed regulations but few programmatic commitments based on the principals and key elements of effective programmes of change, tested with success by committed companies that have been associated with the subject for some time.

Sixteen Italian companies voluntarily signed the document on the conclusion of a convention that took place, among the speakers at which were Maurizio Sacconi, Minister of Work, Health and Social Policies and Simonetta Matone, Head of the Cabinet at the Ministry for Equal Opportunity. Among the companies were Abb, Bpm, Bracco, IBM, Nestlé, l’Oréal Italia and Unipol. After having illustrated the commitment of the Group in drafting the Document and the diffusion of a culture of equal opportunity, Antonio Calabrò, director of Institutional and Cultural Affairs and a member of the Presidential Committee of Assolombarda for culture and social responsibility in business, signed the Document for Pirelli, a commitment for the diffusion of policies and resources free of discrimination and prejudice, also contributing in that way to the competitiveness and success of  the company.

To learn more go to pirelli.com