• DISTRIBUTION OF 0.27 EURO DIVIDEND PER ORDINARY SHARE AND 0.34 EURO PER SAVINGS SHARE DECIDED

• BOARD MEMBERS MANUELA SOFFIENTINI AND GIUSEPPE VITA NOMINATED

• NEW AUDIT COMMITTEE NAMED

• REMUNERATION POLICY APPROVED

• MANAGEMENT LTI INCENTIVE PLAN APPROVED

• ‘PIRELLI SHAREHOLDERS CLUB’ LAUNCHED FOR INDIVIDUAL INVESTORS

The shareholders of Pirelli & C. SpA met today in ordinary session and approved full-year results for 2011 which ended with a consolidated net profit of 440.7 million euro and parent company net profit of 272.5 million euro. They decided the on the distribution of a dividend of 0.27 euro per ordinary share and 0.34 euro per savings share with payment on 24 May 2012 (ex-dividend 21 May 2012).

Shareholders nominated board members Manuela Soffientini (independent) and Giuseppe Vita, both already coopted.

Shareholders also nominated, via list vote, the new Audit Committee for the years 2012, 2013 and 2014. The committee is thus composed of Francesco Fallacara (who shareholders named as chairman), Antonella Carù and Enrico Laghi, as standing auditors, and Umile Sebastiano Iacovino and Andrea Lorenzatti as alternate auditors. The chairman of the new audit committee and the alternate auditor Andrea Lorenzatti were chosen from the minority list (voted for by about 22% of the capital represented at the shareholders meeting) presented by a group of fund managers and financial intermediaries, while the other nominations were chosen from the majority list (voted for by circa 78% of the capital represented at the shareholders meeting) presented by Camfin, Mediobanca, Edizione, Fondiaria-Sai, Allianz, Assicurazioni Generali, Intesa Sanpaolo, Sinpar and Massimo Moratti, members of the Pirelli & C. SpA shareholder agreement. The compensation for the standing auditors was established at 50,000 euro and for the Committee chairman at 75,000 euro.

The curricula of the new auditors are available at the company’s website (www.pirelli.com).

Shareholders also expressed themselves in favour of the Company and Group remuneration policy, as well as approving the 3-year LTI incentive plan (Long Term Incentive), decided by the Board of Directors in March following its proposal by the Remunerations Committee and destined for management. The new plan is linked to the achievement of the targets of the 2012-2014 group industrial plan, to TSR (Total Shareholders Return) and Pirelli’s position in the key sustainability rankings at the world level.

It should be noted that documentation relative to the 2011 annual results and the information document prepared for the LTI plan are available to the public at the company’s headquarters in Milan (Viale Piero e Alberto Pirelli 25) and at Borsa Italiana S.p.A., as well as being online at the company’s website www.pirelli.com.

The minutes of the shareholders’ meeting will be available to the public via the same channels by 8 June 2012.

’Pirelli Shareholders Club’ for individual investor launched

During today’s shareholders’ meeting, Pirelli also presented the “Pirelli Shareholders Club”, an initiative that is one of a number for individual investors. Through this new project Pirelli, the sixth biggest group in terms of the weight of individual investors with 16% of capital held by 70,000 shareholders, intends to bring investors closer to its world and products. By enrolling in the Club, in fact, shareholders will receive not only all the information needed to know the company, but also gain access to exclusive prizes linked to Pirelli’s world, like sporting, cultural and lifestyle events.

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• REVENUES 1,556.5 MILLION EURO, +11.1% COMPARED WITH 1,400.9 MILLION EURO ON 31 MARCH 2011

• OPERATING RESULT (EBIT) AFTER RESTRUCTURING CHARGES 209.4 MILLIONI  EURO (+46.1% COMPARED WITH 143.3 MILLION EURO ON 31 MARCH 2011)

• EBIT MARGIN ON 31 MARCH 2012 AT 13.5% COMPARED WITH 10.2% FOR THE SAME PERIOD IN 2011

• CONSOLIDATED NET PROFIT 125.3 MILLION EURO, AN INCREASE OF 54% COMPARED WITH 81.4 MILLION EURO AT END MARCH 2011

• ATTRIBUTABLE CONSOLIDATED NET PROFIT 122.9 MILLION EURO, AN INCREASE OF 48.4% COMPARED WITH THE PRIOR 82.8 MILLION EURO

• NET FINANCIAL POSITION NEGATIVE 1,305 MILLION EURO, AN INCREASE FROM NEGATIVE 737.1 MILLION EURO AT END DECEMBER 2011

TYRE BUSINESS

• REVENUES 1,542.6 MILLION EURO, +11.4% COMPARED  WITH 1,384.5 MILLION EURO ON 31 MARCH 2011

• PREMIUM REVENUES 584.4 MILLION EURO, +29.2% FROM 31 MARCH 2011

• OPERATING RESULT (EBIT) AFTER RESTRUCTURING CHARGES 215.2 MILLION EURO, +41.2% COMPARED WITH 152.4 MILLION EURO ON 31 MARCH 2011

• EBIT MARGIN ON 31 MARCH 2012 GREW TO RECORD LEVEL OF 14% COMPARED WITH 11% IN THE SAME PERIOD OF 2011

2012 TARGETS

•        REVENUE TARGET REVISED TO APPROXIMATELY 6.45 BILLION EURO, AN INCREASE OF 14% COMPARED WITH 2011 (PREVIOUS TARGET: ~6.6 BILLION EURO, UP 17%)

•        EBIT FORECAST: AT LEAST 800 MILLION EURO, MARGIN ABOVE 12% (PREVIOUS ESTIMATE: MARGIN ABOVE OR EQUAL TO 12%)

•        INVESTMENT TARGET LOWERED TO APPROXIMATELY 500 MILLION EURO (PREVIOUS ESTIMATE: APPROXIMATELY 560 MILLION EURO)

•        NET FINANCIAL POSITION TARGET CONFIRMED NEGATIVE AT BELOW 1 BILLION EURO BEFORE DIVIDENDS

***

ORGANIZATIONAL MODEL RE-DEFINED. INTRODUCES ROLES OF CTO (CHIEF TECHNICAL OFFICER) AND CCO (CHIEF COMMERCIAL OFFICER) REPORTING TO THE CHAIRMAN AND CEO

***

The Board of Directors of Pirelli & C. SpA today reviewed and approved intermediate results for the 3 months ended 31 March 2012.

The continual strengthening of production in rapidly growing economies and the focus on the Premium segment, which as well as being the most profitable segment is also the tyre market’s fastest growing, enabled Pirelli to end the first quarter of 2012 with further improvements in key economic indicators and profitability, notwithstanding the persistent macro-economic slowdown, particularly in Western economies.

Consolidated revenues on 31 March 2012 totaled 1,556.5 million euro, an increase of 11.1% compared with 1,400.9 million euro in first quarter 2011. The consolidated operating result after restructuring charges was 209.4 million euro, with an increase of 46.1% compared with 143.3 million euro in first quarter 2011 and saw the margin on revenues rise by over three percentage points to 13.5% compared with 10.2% in the same period of 2011. The net result was 125.3 million euro, an increase of 54% from 81.4 million euro in first quarter 2011.

The consolidated net financial position was negative 1,305.0 million euro compared with 737.1 million at end 2011 (negative 712.8 million euro on 31 March 2011), reflecting a normal seasonal variation in the business working capital, as well as payment, of 154.5 million euro, for the acquisition of the Russian plants in Kirov and Voronezh.

For the Tyre activities, which represent almost all (99%) group sales, the quarter registered a further increase in sales (+11.4% to 1,542.6 million euro) and a further increase in profitability which reached the record level of 14% compared with 11% in the same period of 2011. In a market context discounting the global economic slowdown, these results were achieved thanks to the continual improvement of the sales mix – increasingly focused on Premium products – and the ability to use the price lever to offset increases in the cost of raw materials, which in the quarter had an impact of approximately 85 million euro, as well as constant improvement in efficiencies, which totaled 26 million euro in the period.

With regard to the Premium segment, in particular, in the first quarter of 2012 revenues grew 29.2% compared with the same period a year earlier in 2011 to 584.4 million euro, and in the Car business represented 52.6% of the total, with an increase of over five percentage points compared with 47.4% in the same period of 2011.

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GOVERNANCE METRICS INTERNATIONAL (GMI) CONFIRMS 10/10 JUDGEMENT FOR CORPORATE GOVERNANCE ON THE ITALIAN MARKET

Francesco Chiappetta, Group General Counsel, receives the 2012 World Finance Corporate Award at the London Stock Exchange.

Since 2007 the award recognizes the leading companies in corporate governance and the management of their financial activities.

All of which for Pirelli is a reason satisfaction and pride, as reflected in the words of Francesco Chiappetta during an interview at the award ceremony.

Video: Award ceremony and interview

The positive operating performance was underpinned by the core tyre business which accounts for 98.4% of Group sales. Pirelli Tyre registered sales growth of 19.5% (+16.2% net of exchange rate effects) sustained in particular by price/mix effectiveness (8.9%) and volume growth (+7.3%).

Pricing actions compensated for increased production costs, in particular raw material costs. The progressive and strategic shift of the mix towards Premium products, increased volumes and constant attention to improving company efficiency all contributed to the significant increase in Pirelli Tyre’s profitability: in 2010 Ebit before restructuring charges reached 10% of sales for the first time (8.7% in 2009), while Ebit after restructuring charges rose to 9.5% of sales from 7.7% in 2009. The Consumer division contributed to the result with a post-restructuring-charges margin of 9.6% (7.4% in 2009) while the Industrial division’s was 9.2% (8.5% in 2009).

With reference to group targets, where the activities of Pirelli Re and Pirelli Broadband Solutions are considered discontinued operations and contribute only to the net result (2009 data were reclassified to enable like-for-like comparison):

• revenue: 4,848.4 million euros (+19.2% from 2009) compared with “approximately 4.8 billion euro” target. Of this, 37% stemmed from “green” activities (25% at end 2009) compared with a 36% target
• Ebit margin after restructuring charges: 8.4% compared with “over 7.5%” target
• Net financial position: negative 455.6 million euros, significantly better than “under 700 million euro” target

Pirelli Tyre, ended the year with:

• Revenues of 4,772 million euros (+19.5% from 2009) compared with “above 4.7 billion euro” target
• Ebit margin after restructuring charges: 9.5% (7.7% in 2009), compared with a “greater than 8.5%” target

The focus on core tyre sector industrial activities and the transformation of Pirelli into a pure tyre company was completed during the year with the separation of Pirelli RE from the Pirelli & C. group (finalized on 25 October 2010 with the attribution of Pirelli RE shares to Pirelli shareholders and the voluntary reduction of company capital) and the disposal of Pirelli Broadband Solutions. Despite the negative 223.8 million euro impact of these discontinued operations, the total consolidated net profit on 31 December 2010 was 4.2 million euros compared with a loss of 22.6 million euros in 2009, while the net attributable result was a positive 21.7 million euros, substantially in line with 22.7 million euros of 2009. The net consolidated result excluding discontinued operations was a positive 228 million euros, almost three times the 2009 result of 77.6 million euros.

The consolidated operating result, after restructuring charges of 24.7 million euros compared with 55.2 million euro in 2009, was 407.8 million euros compared with 249.7 million euro in 2009, equal to 8.4% of revenues compared with 6.1% in 2009. Revenues in 2010 were 4,848.4 million euros, an increase of 16.0% on a like-for-like basis and net of exchange rate effects (4,067.5 million euros in 2009).

The consolidated net financial position on 31 December 2010 was negative 455.6 million euros (after dividend payments of 81 million euros) compared with negative 528.8 million euros on 31 December 2009, thanks to inflows from the disposal of non-strategic assets and, above all, the positive contribution of net operations inflows from Pirelli Tyre, a positive 167.7 million euros (395.4 million euros in 2009), notwithstanding investment that nearly doubled from 2009 (405.0 million euros in 2010 compared with 217.4 million euros), particularly aimed at the increase of production capacity.

It is with noting that in 2010, the value of investments in research and development remained at around 3% of sales, one of the highest levels in the sector. This enables the company to continually enrich its patents’ portfolio (today numbering over 4,500) and renew its offering of Premium products, as well as continually innovating material-mixing and tyre-building processes in all product segments, and developing alternative materials with lower costs and lower environmental impact…

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Tema della sesta edizione, ‘Viruses: the Invisibile Enemy’. Scienziati di fama internazionale hanno raccontato come i virus si sono evoluti e come gli esseri umani hanno imparato nel tempo a debellarli. Hanno indicato come scienza e tecnologia possono affrontare le nuove minacce virali sviluppando nuovi vaccini preventivi e terapie mirate, basate sulle conoscenze più avanzate della biologia molecolare. Presenti all’evento, tra gli altri, Marco Tronchetti Provera, presidente di Pirelli, Umberto Veronesi, Direttore Scientifico dell’Istituto Europeo di Oncologia, Giovanni Batoli presidente della Fondazione Giorgio Cini, il sindaco di Venezia Giorgio Orsoni, Ferruccio Fazio, Ministro della Salute, Luc Montagnier, Premio Nobel della medicina 2008.

La Fondazione Silvio Tronchetti Provera è nata nel 2001 per promuovere la ricerca nei settori dell’economia, delle scienze, delle tecnologie e del management e in altre aree di interesse per lo sviluppo industriale. La fondazione punta, in particolare, a promuovere la formazione di giovani talenti in queste discipline. In nove anni di attività ha favorito il rientro di giovani e brillanti ricercatori e finanziato importanti ricerche nei settori delle nanotecnologie, delle energie rinnovabili (green technologies), dell’infomobilità, della fotonica, e delle biotecnologie. La Fondazione, inoltre, opera a stretto contatto con le principali università italiane e straniere e si avvale della collaborazione di aziende come Microsoft, Pirelli, STMicroeletrics, e Value Partners e di istituzioni pubbliche quale il CNR e l’ l’ Agenzia per la diffusione delle tecnologie per l’innovazione.

www.thefutureofscience.org/

www.fondazionetronchetti.it

Revenues in Turkey seen at 500 million euros in 2010, an increase of over 25% from 2009

140 million euros invested in Izmit facility in the last 10 years, new investment of 30 million euros planned for 2011

With 8 million units produced a year, Izmit is Pirelli’s biggest plant

50,000 tyres will be produced for F1 in 2011

Pirelli, present since 1960, celebrates 50 years’ activity in Turkey

Istanbul, 23 September 2010 – Pirelli today inaugurated the “Factory of Champions” at Izmit, the plant where the group will produce tyres for all the Formula One teams for the 3-year period 2011-2013. The Izmit facility, which this year celebrates 50 years’ activity, has housed the Motorsport tyre production line since 2007 and, in synergy with the Research and Development centre in Milan, will become the heart of Pirelli’s Formula One activities.

Producing 8 million tyres for cars, trucks and motorsport each year, Izmit is the Pirelli factory with the greatest unit output of all. The group has invested 140 million euros there over the last 10 years and plans to invest a further 30 million euros in 2011 to support expansion in Turkey and nearby emerging markets.

The Formula One tyre division was inaugurated with a press conference at the plant with the participation of Nihat Ergun, Turkey’s Minister for Industry and Commerce, Gianpaolo Scarante, Ambassador of Italy in Turkey, Marco Tronchetti Provera, Chairman and CEO of the Pirelli Group, Francesco Gori, CEO of Pirelli Tyre, Andrea Pirondini, CEO of Turk Pirelli Lastikleri and Metin Ar, Chairman of Turk Pirelli Lastikleri.

Pirelli in Turkey

Inaugurated in 1960, the Izmit facility produces tyres for the car and industrial segments, as well as Motorsport. It supplies key European markets (including Turkey, ltaly, Germany, France, Spain, Greece, Switzerland, Austria, United Kingdom) and the Middle East, as well as car makers such as Mercedes, Jaguar, Fiat and Renault. The facility, which also houses a steel cord factory in its 25th year of activity, covers an area of 340,000 square metres and employs 1,800 people.

Pirelli expects 2010 revenue in Turkey of over 500 million euros, an increase of over 25% compared with 2009, and will strengthen its position further with new investments of 30 million euros in 2011, having already invested 140 million euros in the last 10 years.

Turkey and Formula One

With the launch of the Formula One division, Pirelli has broadened its offering of automobile sports tyres. In 2011, the Company will produce a total of 200,000 competition tyres, 50,000 of these for Formula One and 70,000 for the GP2 and GP3 championships, for which Pirelli is the sole supplier. The remainder will go to the 60 international automobile road and track competitions for which the Milan-based tyre maker is the exclusive supplier, as well as prestigious single brand championships such as the Ferrari Challenge, Lamborghini Super Trofeo and Trofeo Maserati. In total, Pirelli’s automotive sports range counts 200 types of racing tyres, including rally tyres.

Formula One tyres will be produced exclusively at the Izmit plant on the basis of simulation models, compounds and structures developed by Pirelli Research and Development, which counts over 1,000 engineers and technicians. The Formula One line, which covers an area of 15,000 square metres, will run the most advanced sports tyre production machinery.

The Izmit facility, in synergy with Pirelli’s centre for the preparation of sports tyres in Burton on Trent (United Kingdom), will also be the centre of all Formula One logistics activities.

First tests

The new PZero Formula One tyres, developed on the basis of Pirelli’s extensive experience in road and track automobile competitions, have been tested, beginning in mid-August, with success on tracks in Mugello (Italy), Le Castellet (France) and Jerez (Spain) and have recently undergone new tests on the Monza (Italy) circuit. In Mugello and Le Castellet, structures and profiles were tested to guarantee maximum adaptability, continuity and homogeneity of tyre performance. In Jerez and Monza, testing focused on optimization of the compounds, of which there will be six: four “slicks” for dry conditions, one rain tyre and one intermediate for light rain.

Track testing was done on a Toyota TF 109, used in last season’s Grand Prix, driven in Jerez by Germany’s Nick Heidfeld. Final testing is expected to take place in Abu Dhabi in November after the Grand Prix.

“The tests went beyond my own expectations and I believe Pirelli is at a good point in the development of the tyres,” said Heidfeld. “The Pirelli team, to whom I think I gave some useful advice, has from the beginning been on the right track in terms of supplying all Teams with reliable and safe tyres to ensure a great show and enable each driver to express their own driving style”.

Formula One and sustainability

In line with the Pirelli Group’s Green Performance strategy, aimed at developing products and solutions that combine maximum performance and safety with respect for the environment, Formula One production was also inspired by criteria of environmental sustainability. In particular, as in all Pirelli competition tyres, the compounds for the PZero are free of highly aromatic oils. Further, the processes used in Izmit are based on energy and water efficiency and the reduction of dangerous emissions like carbon dioxide. Special attention has been given to the re-utilization of production remnants and used tyres. The waste handling protocol calls for the recycling of used F1 tyres for either the generation of new primary material or energy production. Pirelli’s attention to the issue of sustainability is also shown by its recent confirmation in the Dow Jones Sustainability STOXX and Dow Jones Sustainability World indices, where the Company has been the leading company in the “Autoparts and Tires” sector for four consecutive years.

Pirelli’s 50 years in Turkey

The inauguration of the Formula One division coincides with celebrations for the 50^th anniversary of Turk Pirelli’s activities which will include, among other things, a photographic exhibition which opened yesterday at Istanbul’s Ciragan Palace. The collection of images recounts the history of the Company’s industrial presence in Turkey and its technological evolution. The official opening was attended by local authorities and leading exponents of Turkey’s business and cultural communities, including the director Ferzan Ozpetek and singer Sezene Aksu

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It is to them that the photography exhibit ‘Workers’ is dedicated. The exhibit was organised by the Pirelli Foundation and depicts the entrepreneurial and technological soul of Pirelli’s Settimo Torinese facilities through the faces of the men and women who work there. Seventy faces will be on display from 12 September to 10 October at La Giardinera, Settimo Torinese, faces that show intelligence, energy and skill, as well as pride in the good work they do for Pirelli.

Workers
The history and future of Pirelli in Settimo Torinese in the faces of those who make it
A Pirelli Foundation project
Photos by Carlo Furgeri Gilbert

La Giardinera, via Italia, 90 bis – Settimo Torinese
Thursday & Friday, 3pm to 7pm
Saturday & Sunday, 10am to 12 noon / 3pm to 7pm
Admission is free
www.fondazionepirelli.org

Pirelli Tyre. Both revenues and investment are on the rise. ‘Pirelli World’ reports on the group’s strategies for success in the global marketplace.

Horacio Pagani visits the University of Milan. On the eve of the new course record at the Nürburgring set by Pagani Zonda R on Pirelli P Zero Slick tyres, ‘Pirelli World’ has asked Horacio Pagani, founder and president of Pagani Automobili (a Pirelli partner since 2005), to talk about this prestigious car manufacturer and the secret to its success.

Pirelli Manufacturing System (PMS). The outcome of the ‘Managing to Lea(r)n’ project, which Pirelli launched in 2010 with the help of the SDA Bocconi School of Business, Milan. The project seeks to insert lean procedures and tools into the production process and has already seen the participation of 130 employees from all of the group’s tyre facilities. 

In the latest issue, ‘Pirelli World’ goes to Egypt to tell the story of more than ten years of growth with Karim Gaddas, CEO of Pirelli Egypt, in conjunction with the inauguration of the new area of the Alexandria truck facilities.

The Pirelli Foundation now operational. Established with the goal of developing and promoting Pirelli’s history and entrepreneurial culture, the Foundation publishes periodicals, photos, video, sketches and other mementos that depict the 138 years of the company’s history and culture. ‘Pirelli World’ gives us a taste of this immense heritage.

All this and more in the latest issue of  ‘Pirelli World’

JUNE 2010:

• FIRST HALF OPERATING RESULTS SIGNIFICANTLY IMPROVED OVER THE SAME PERIOD OF 2009

• IN THE SECOND QUARTER PIRELLI TYRE REPORTS RECORD QUARTERLY OPERATING PROFIT 

• 2010 TARGETS OF PIRELLI GROUP AND PIRELLI TYRE RAISED AGAIN:

PIRELLI GROUP: 2010 REVENUE TARGET IMPROVED (EXCLUDING PIRELLI RE) TO 4.8-4.9 BILLION EUROS, COMPARED WITH  4.6-4.7 BILLION EUROS ESTIMATED IN MAY, WITH EBIT OF ABOUT 7% (IN MAY TARGET WAS AT LEAST 6.5%); INVESTMENTS  RISING TO MORE THAN 350 MILLION EUROS FROM MORE THAN 300 MILLION EUROS, WITH CONFIRMATION OF THE TARGET FOR A NET FINANCIAL POSITION OF – 700 MILLION EUROS 

PIRELLI TYRE: 2010 REVENUE TARGET RAISED, REVENUES EXPECTED TO RISE ORGANICALLY UP TO 15%, COMPARED WITH A TARGET OF MORE THAN 10% ORGANIC GROWTH ESTIMATED IN MAY; EBIT IN ABSOLUTE VALUE EQUAL TO AT LEAST 360 MILLION EUROS COMPARED WITH 320- 330 MILLION EUROS ESTIMATED IN MAY

• BOND ISSUE APPROVED, TO TAKE PLACE WITHIN 12 MONTHS, POSSIBLY IN MORE THAN ONE INSTALLMENT, OF UP TO 800 MILLION EUROS TO OPTIMIZE THE DEBT STRUCTURE 

• CARLO PURI NEGRI RESIGNS. VITTORIO MALACALZA COOPTED TO THE BOARD OF DIRECTORS 

PIRELLI & C. GROUP

• REVENUES: +19.8% TO 2,426.5 MILLION EUROS (2,026.2 MILLION EUROS AS OF 30 JUNE 2009)

• EBIT: +62.8% TO 193.4 MILLION EUROS (118.8 MILLION EUROS AS OF 30 JUNE 2009)

• NET INCOME OF CONTINUING OPERATIONS 80.8 MILLION EUROS, MORE THAN DOUBLE COMPARED WITH 30.3 MILLION EUROS IN THE FIRST HALF OF 2009 

• TOTAL CONSOLIDATED NET RESULT NEGATIVE FOR 175.6 MILLION EUROS DUE TO ACCOUNTING EFFECT OF THE SEPARATION OF PIRELLI RE (NEGATIVE FOR 256.4 MILLION EUROS)

• OPERATING CASH FLOW POSITIVE FOR 55.6 MILLION EUROS (-18.5 MILLION EUROS IN THE FIRST HALF OF 2009); INVESTMENTS UP TO 135.5 MILLION EUROS (65.4 MILLION EUROS IN THE FIRST HALF OF 2009); NET FINANCIAL POSITION NEGATIVE FOR 696.9 MILLION EUROS (- 528.8 MILLION EUROS AS OF 31 DECEMBER 2009)

PIRELLI TYRE

• REVENUES: +21.4% TO 2,325.3 MILLION EUROS (1,915.9 MILLION EUROS IN THE FIRST HALF OF 2009); OPERATING INCOME: +59% TO 217.3 MILLION EUROS (136.8 MILLION EUROS IN THE FIRST HALF OF 2009), WITH EBIT MARGIN RISING TO 9.3% FROM 7.1%

• REVENUES IN THE SECOND QUARTER: +22.9% TO 1,215.3 MILLION EUROS (989.0 MILLION EUROS IN THE SECOND QUARTER OF 2009); OPERATING INCOME: +54% TO 121.8 MILLION EUROS (79.3 MILLION EUROS IN THE SECOND QUARTER OF 2009), WITH EBIT MARGIN RISING TO 10% FROM 8%

With the ‘Millions of Smiles’ tournament, the second edition of the InterCampus Romania series came to an end at Slatina recently. The special project was launched in July 2008 in collaboration with F.C. Internazionale Milano, Pirelli and Comunità Nuova.

For three days, over 250 children played in football matches that took place on pitch two of the 1^st May Stadium, plus recreational activities organised in parallel with them. Fun was assured for the smallest children, who enjoyed karaoke competitions, a puppet theatre, cartoons, clowns and face paint.

‘Millions of Smiles’, made possible by the work of volunteers from various Italian associations, the trainers of F.C. Internazio nale Milano, representatives of Comunità Nuova of Milan, the William Tyrell Foundation of Slatina and employees of Pirelli Tyres Romania, is the event with which InterCampus Romania celebrated a year of sports-recreational activities organised for more than 80 children from various social environments. For more than two years, the children have learnt to work as a team and integrate themselves into an organisational system through football, as well as gaining experience in social values like collaboration, friendship, loyalty and other important qualities.

“The ‘Millions of Smiles’ tournament is the concluding event of the second season, during which over 80 children have been involved in football and relating to each other”, said Luca de Vecchi, a Comunità Nuova representative. “To see their high spirits, the will to play together, to get to know each other without prejudice, makes us believe that the substantial objective we set ourselves with Pirelli and InterCampus of integration through sport is also possible in Slatina”.

“The InterCampus staff has experienced these three days with great satisfaction, establishing that not only the children have made tremendous improvements on the pitch in this sports season, the greatest pleasure was to see how much they enjoyed themselves, thanks also to the activity of animation”, declared Annalisa Novembre for InterCampus. “We would like to thank Pirelli, which has supported this event, the NIP volunteers and Comunità Nuova, Bambini in Romania and the William Tyrell Foundation, who allowed the hundreds of children to enjoy a unique experience and give us thousands of smiles”.

A spokesperson for the volunteers of the Bambini in Romania association said, “For us, the importance of the event was the collaboration between the various Italian and Romanian associations more than anything else, having the mutual objective of creating a joint moment of festivity and integration in the Slatina area. We have seen great potential in the event, which we hope can be exploited and increased in the years to come”.

Fourteen teams from sports clubs in the Olt region and InterCampus competed in this year’s football championship in the various age categories for children born in 1997-1998; 1999; 2000-2001.