Slides
Page 1
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 FY 2025 Results FY 2025 Preliminary Results Milan, February 25th, 2026 TYRE PARTNER OF MILANO CORTINA 2026
Page 2
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 1 Agenda 1 KEY MESSAGES 2 PIRELLI & C. – FY 2025 PRELIMINARY RESULTS 3 FY 2026 OUTLOOK AND TARGETS 4 APPENDIX
Page 3
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 2 Key messages 2025 results: Outstanding execution in a challenging environment • High Value position strengthened, with market share gains across channels and regions • Top profitability among Tier 1, with price/mix and efficiencies more than offsetting external headwinds • Deleveraging above targets, driven by strong cash flow and the conversion of the equity-linked bond Sustainability fully on track: • Significant progress across all pillars (People, Products, Climate and Nature), meeting all 2025 targets • Pirelli confirmed “Top 1%” of S&P Global 2026 Sustainability Yearbook, the only tyre maker worldwide 2026 Guidance confirms a solid improvement despite external headwinds • Geopolitical uncertainties continue to shape a complex environment • Growth momentum confirmed in the High Value Car Tyre segment • Pirelli data-driven model supports company’s growth profile, technology edge, and structural efficiencies
Page 4
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 3 Agenda 1 KEY MESSAGES 2 PIRELLI & C. – FY 2025 PRELIMINARY RESULTS 3 FY 2026 OUTLOOK AND TARGETS 4 APPENDIX
Page 5
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 4 Solid execution in a challenging external environment… +4.2% organic growth supported by the solid commercial performance Profitability improvement Internal lever (p/mix, efficiencies, tariffs mitigation actions) more than offsetting external headwinds for ~-€320M Earnings growth (+5.9% yoy) thanks to improved operating performance & lower financial expenses Successful de-leveraging (2.4x in 2021ye) €1,074M NCF before dividends thanks to the solid cash generation and the equity-linked bond conversion STD H.V. 76% FY’24 79% FY’25 6,773 6,776 FY’24 FY’25 1,061 1,081 501 531 FY’24 FY’25 FY’24 FY’25 1,926 1,102 NET SALES ADJ. EBIT NET INCOME NET FINANCIAL POSITION 6.7 ÷ 6.8B € million 15.7%margin 16.0% ~16% 1.6B Net Debt / EBITDA ~1x not provided Guidance: ~ 1.3x ~ 0.7x
Page 6
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 5 Goals NET ZERO @ 2040 SBTi2 validated >80% weight of bio-based & recycled materials by 2030 (best product on the market) Reduce water specific withdrawal by 60% by 2030 (all group sites) Accident Frequency Index1 @ 2030 <1 … with a continued progress on Sustainability All KPIs and comparison vs. 2025 guidance is illustrated on slide 14; 1. Frequency Index(FI): ∑(Fatalities + Serious lost time injuries + Lost time injuries ) x 1.000.000/ worked hours . If calculated based on 200.000 hours worked, Index 2025 is 0,24 and <0,2 @2030; 2. SBTi:Science Based Targets initiative; 3. IPcode 35837 285/45R22 XL LR ncs 114 Y P-ZERO Summer NCS - thanks to a combination of physical segregation and mass balance approach. Bio-based and recycled content is at least 31,7% and 38,3% respectively. Bio-based materials are natural rubber, textile reinforcements and bio-chemicals, while recycled materials are silica from rice husk ash, reclaimed rubber, recycled steel and – through mass balance – synthetic rubber, carbon black and silica. 2025 Progress >70%3 -54.3%1.211 -63.3% Scope 1+2 -27.5% Scope 3 ( vs. 2018) ( vs. 2015)
Page 7
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 6 2025 Results overview: leadership enhanced through key strategic programs Innovation Leadership confirmed: ▪ Top position in product tests ▪ Worldwide recognition for Cyber Tyre Boosting competitiveness: ▪ € 158M efficiency gain (2.3% of sales) ▪ Progressing on Manufacturing program HV share gains across regions & channels ▪ OE: expanding partnerships ▪ Replacement: faster portfolio renewal and top-ranked products INNOVATION PROGRAM OPERATIONS PROGRAM COMMERCIAL PROGRAM
Page 8
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 7 Strengthening our leadership in the High Value Market Share gain in both channels of Car ≥18’’, while keeping reducing the exposure to Standard Source: Pirelli market estimates based on third party and market data from tyre -makers associations Pirelli MarketTOTALO.E.REPL. TOTAL CAR ≥18” PIRELLI PERFORMANCE High Value: double digit growth across channels ▪ OE: strong performance, in both North America & APac, thanks to the strengthening of our partnerships and favourable comparison YoY ▪ Replacement: market share gain across Regions Standard: Continued reduction of exposure ▪ -13% in 4Q in line with the previous quarter (-11% in FY’25) 4Q’25 HIGHLIGHTS MARKET ▪ Total: slightly better trend supported by High Value and OE performance ▪ HV: solid growth confirmed in both channels driven by High Value regions COMMERCIAL 2% 4% 0% -2% FY’25 1% 0% FY’25 6% 7% 5% 7% 6% 7% 3% 6% 0% 0% 4Q’25 1% 2% 4Q’25 8% 11% 6% 11% 10% 11%
Page 9
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 8 A Superior Portfolio of Homologations to Secure Future Growth Leveraging best-in-class technology and partnerships with leading Premium & Prestige OEMs (*) ≥19’’ OE marked IP5 @ Jan26 German pricelist (no off -road, no Winter Nordics) Most iconic models introduced in 2025, fitting Pirelli tyres~ 320 new homologations in 2025 Ferrari TestaRossa (849) AMG GT Jaguar Panthera X900 BMW X5(G65) iX5(G65) Maextro S800 Genesis GV90 (JG1) Prestige Premium BEV/NEV RAM Rampage JEEP Wrangler Volvo S90 Lamborghini URUS SE Ford Mustang Mercedes GLC/EQ BMW iX3 ~90% on ≥19” ~70% on Specialties ~60% on EV ≥19’’ Marked Homologation Portfolio ~3x vs Peers average* COMMERCIAL Audi Q5 Bentley Continental GT Porsche Cayenne E4 INNOVATION Some examples
Page 10
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 9 Leadership in High-End segment with a renewed and distinctive offering INNOVATION Record year for Car product tests success 6 7 9 New Car Product Lines Main product families Safety & durability for Sedans and CUVs Superior performance chosen by the best OEMs The SUV specialist 2023 2024 2025 Test winner Test winner 12 victories & 5 podiums in comparative tests Test winner PZERO (PZ5) PZERO WINTER 2 CINTURATO AS SF3 Compasso d’Oro AwardPZERO E Summer Winter All Season #2 MOTO PRODUCTS #4 CYCLING PRODUCTS For Custom-Touring motorbikes COMPARATIVE TEST WINNER Motorrad, with Scorpion Trail 3 PS Magazine with Supercorsa Endurance Tyre with 50% bio- based & recycled materials Dedicated to MTB and Cross-country race CAR TWO WHEELS For motocross racing For Gravel bikes, with a new mixing and structure Test winner SCORPION AS SF3
Page 11
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 10 Cyber Tyre gains worldwide recognition Vehicle-to-Everything (V2X) Innovation of the Year INNOVATION SafetyBest Award “for the pioneering development of Cyber Tyre technology, an innovation of exceptional significance for automotive safety.” Pirelli named “Company of the Year” for the innovative scope of Cyber Tyre, a technology that “highlights how digital systems are able to redefine even the traditional components of the automotive sector” #1st prize in the Safety category at the Automobile Awards thanks to its advanced warning of risks. Combined with V2X connectivity and Pirelli’s algorithms, it can also share road-condition alerts with infrastructure and other connected vehicles to improve safety and mobility. “Cyber Tyre is a key technology for the future of smart mobility, which includes autonomous driving, connected vehicles, and the digitalisation of infrastructures” 10
Page 12
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 11 Efficiency program delivery above target Efficiencies supported profitability improvement, with benefits above inflation. Product cost & Manufacturing the main contributors 1. Building Energy Management System Total Gross Impact Product Cost ~40% of total ~15% of total ~15% of total €158M FY 2025 ACT Manufacturing SG&A Organization Design Modularity (tyre structure, weight and cost optimization). ~30% of total Energy efficiency through curing electrification and B.E.M.S.1 High-tech automated solutions in finishing, handling and material flow Digital solutions to increase productivity, quality and flexibility Warehouse efficiencies and distribution optimization Upskilling and change in the mix of competences MAIN PROJECTS Supplier base rationalization and centralization OPERATIONS Vs. €150M Target, covering 1.3x input cost inflation
Page 13
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 12 FY 2025 Sales bridge Solid organic growth supported by sound price/mix improvement offsetting forex headwinds. HV Sales Reach 79% of Total Sales +4.2% +0.4% +3.8% -3.8% +0.0% STD H.V. € million Price/Mix: In line with expectations, supported by product and regional mix; negative channel mix due to OE outperformance Volumes: strong HV growth across regions, especially in OE, coupled with continued reduction of Standard Forex: US$ weakness and LatAM currencies volatility; perimeter due to Däckia AB de-consolidation 76% FY’24 28 Δ Volumes 261 Δ Price/mix Organic Growth (258) Δ Forex (28) Δ Perimeter 79% FY’25 6,773 6,776 4Q DYNAMICS 4Q’25 +6.1% -0.5%+2.4% +3.7% -5.3% -0.4% -1.3%
Page 14
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 13 FY 2025 adjusted EBIT Internal levers (p/mix, efficiencies & tariffs mitigation actions) drive profitability growth, offsetting external headwinds for ~€320M 173 158 FY’24 11 Volume Price/mix (56) Raw Mat. (85) FX Effic. (121) Inflation (26) D&A (33) Other FY’25 1,061 1,081 15.7%margin 16.0% FY commodities only on Raw Mat + consolidation Net impact +37Net impact +32 Net impact +69 245 24641 4Q’24 15 Volume 32 Price/mix 1 Raw Mat. (32) FX Effic. (28) Inflation (5) D&A (23) Other 4Q’25 15.4%margin 15.6% 4Q commodities only on Raw Mat + consolidation Net impact +13Net impact +1 Net impact +14 € million € million o/w US Gross Tariffs -55 o/w US Gross Tariffs -20
Page 15
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 14 FY 2025 Net Income Earnings growth supported by sound operating performance and lower financial expenses 7.8%7.4%% of sales Financial Income & Expenses: 184M€ vs 287M€, due to lower non-cash items and reduced financial charges € million Income Taxes: 30.2% tax rate (vs. 22.6% in FY24) no longer benefitting from tax incentives in Italy 501 531103 FY’24 21 Δ adj. EBIT (33) Δ non recurr. / restr. costs 21 Δ Net Income / loss from equity partecipations Δ Financial income / expenses (83) Δ Taxes FY’25 Non-recurring: organisation streamlining in Europe and LatAm Equity Participations: including the proceeds from the disposal of the Finpriv stake (Mediobanca)
Page 16
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 15 FY 2025 Net Financial Position Strong deleverage thanks to solid operating cash flow and equity bond conversion 420 200 250 NFP FY’24 (1,548) EBITDA adjusted CapEx 113 Increase in rights of use (9) ∆ Work. Cap. & other Interests paid 154 Taxes Paid 92 Other (497) Bond Conversion Dividends NFP FY’25 1,926 1,102 Net Cash Flow before dividends: +1,074 (+534 in FY’24) Operating Cash Flow: +1,024 (+989 in FY’24) Careful inventories management (~21.5% of sales, stable YoY) NWC DYNAMYCS 1.27x 0.71xNet Debt / EBITDA Payables and Receivables in line with previous year (Payables ~31% of sales, Receivables ~9%)
Page 17
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 16 Gross Debt structure as of December 31st 2025 1.Including assets at FV through P&L 2. Based on average gross debt and hedging of intragroup financing € million Gross Debt maturity Net Financial Position Liquidity profile Cost of debt (last 12 months) Break-down by currency2 Liquidity position1 Liquidity margin 1,606 3,106 Committed lines not drawn 1,500 458 1,198 1,192 112 Gross Debt (1,606) (253) Fin. Assets Net Fin. Position 2,960 1,102 Fin. receivables & other Liquidity position Loan Bond Other IFRS 16 % of total Gross Debt ~7% ~43% ~22% ~4%~23% ~1% 111 125 102 599 599 2026 881 2027 597 70 2028 595 49 2029 24 2030 2031 & beyond 213 689 1,265 644 24 125 Dec’24 Dec’25 5.06% 4.40% (1,858) ESG finance on gross debt at 80.7% In January 2026 completed the full refinancing of 2027 loan maturities and renewed the undrawn committed lines to 2031. 2025 Target of 100% of ESG debt at HQ level achieved. EUR 83% BRL 6% GBP 3% RUB 1% CNY 1% OTHERS 4% RON 3%
Page 18
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 17 Agenda 1 KEY MESSAGES 2 PIRELLI & C. – FY 2025 PRELIMINARY RESULTS 3 FY 2026 OUTLOOK AND TARGETS 4 APPENDIX
Page 19
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 18 Navigating a dynamic landscape characterized by uncertainty and structural transformations RISING GEOPOLITICAL TENSIONS MACROECONOMIC HEADWINDS TECH ADVANCEMENT & TRANSITION Regional Escalations Trade War Value chain disruptions Demand uncertainties Forex volatility R/Mat. swings & rising input costs 2.9% 2.9% 2025 2026E Real GDP 3.2% 2.9% Inflation (CPI) 2025 2026E Resilient World GDP growth with easing inflation… EV, Software-defined vehicles and AI … amid rising FX & commodity volatility USD vs EUR 1,14 1,15 1,16 1,17 1,18 1,19 1,20 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Oil & Gas driven by geopolitical tensions; Natural Rubber by SE Asia weather Source: S&P Global Market Intelligence, February 2026; Bloomberg
Page 20
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 19 Pirelli’s reference market expected to be resilient: High Value growing mid-single-digit Weak demand for ≤17'' in key Standard regions Global car tyre market YoY % growth Car ≥18’’: mid-single digit Repl. demand, car production expected to recover in 2H China NA EU OE slightly positive (car production expected to recover in 2H), Replacement expected to grow mid-single digit Flattish OE market (due to uncertainty around consumer spending) while Replacement confirms its resilience (supported by the existing car parc) Pirelli expects to outgrow the market, gaining share in High Value, while keeping on reducing exposure to Standard Low single-digit growth on OE (due to the changes incentive systems); a better trend on Replacement 2025A 2026E ~ +6% ~ -1% + Mid-single digit ~ +1% -1% ÷ +1% Negative low-single digit ≥18" ≤17"
Page 21
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 20 Three main priorities to strengthen leadership & cope with a challenging external scenario… HIGH VALUE GROWTH INNOVATION TRANSFORMATIVE EFFICIENCY Market Pirelli Car ≥18’’ Outperforming Leveraging Pirelli’s business model and iconic brand Accelerating technology development to sustain global leadership Digitalization, Automation, Electrification and acceleration in AI introduction
Page 22
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 21 … leveraging a pervasive Digital Architecture integrated across the entire value chain, empowered by progressive AI introduction INTEGRATED BUSINESS PLANNING INDUSTRIAL IoT & DIGITAL MANUFACTURING SUPPLY CHAIN Digital Enablers NEW SALES & CRM Cloud strategy Big Data Lake Plant planning & Manufacturing Execution System Forecast Raw Material Logistic & Supply Chain Supplier Management PRODUCT LIFECYCLE MANAGEMENT (PLM) Technology & Product Roadmap Material Development Product Development Simulation & Prototyping Portfolio Mngmt & Homologation Cyber Tyre Industrial Internet of Things Mixing Semi finishing Building GC handling & delivering Curing Finishing Post processing DIGITAL TWIN New business evaluations OE & Replacement Digital Marketing Online e-commerce
Page 23
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 22 GROWTH | Exploit technological & market opportunities EXPANDING OE OPPORTUNITIES MARKET OPPORTUNITIES PRODUCT MIX IMPROVEMENT Leverage leadership on EV and Specialties Broader portfolio coverage in niche segments Boosting regional offer to meet customer needs US OEMs Partnerships on Iconic Models Consolidate leadership with Chinese Premium NEV Leveraging our tech leadership with EU Prestige & Premium OEMs Market Pirelli 5% Car ≥18’’ 2025 2026 79% >80% HV Sales REINFORCING HV POSITIONING + Mid-single digit Outperforming Growing in USA, the largest HV market Exploiting opportunities in fast growing HV markets
Page 24
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 23 GROWTH | Leveraging an iconic brand beyond tyres Enlarging our reach through art, culture and strategic sponsorships 1. Based on Kantar 2025 Brand Equity Research for Pirelli Road to MotoGP: Sole Tyre Supplier from 2027 Exclusive global tyre partner Sponsor & Technical Partner Olympic Official Tyre Partner Shaping contemporary culture for > 50 years Promoting and producing contemporary art Official Tyre Partner STRATEGIC SPONSORSHIPS in prestige/sporty & high-tech brand perception11st WORLDWIDE BRAND RECOGNITION in brand metrics among high- value consumers worldwide1 Top Scorer ART & CULTURE ASSETS 23
Page 25
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 24 PRODUCT INNOVATION in 2026 1. Time To Market Renewal of highly successful lines for specific segments/markets Addressing customers’ needs across segments Moto: 3 new products, ensuring performance with a sporty character Cycling: Launch of 4 new products for racing, road & gravel and MTB 9 NEW CAR PRODUCTS 7 NEW TWO-WHEELS PRODUCTS Focus on safety & performance, incorporating our latest technologies Leveraging modularity to reduce manufacturing complexity Virtualization and advanced materials drive lower time-to-market and better quality
Page 26
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 25 Partnerships Projects & Collaborations Visual Sensing Virtual Sensing Sensor Fusion Solution Ecosystem Smart Roads via V2X Technology Predictive Maintenance Infrastructure Monitoring Vehicle Dynamics + Autonomous Driving PRODUCT INNOVATION | CyberTyre ecosystem development is ongoing Advanced smart infrastructure monitoring and safety through partnerships with top technology players & Institutions… ... while expanding agreements with new International Prestige & Premium OEMs
Page 27
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 26 TRANSFORMATIVE EFFICIENCY | delivering ~€150M mainly through product & manufacturing Programs leveraging Digitalization, Automation and AI introduction to enable a sustainable cost base transformation 1. Industrial internet of Things 2. Building energy management system 3. Kwh/pcs plus CO2 and water withdrawal reduction 26 >80% of products developed PRODUCT DESIGN Virtualization & Simulation: accelerating innovation pace while reducing costs Modularity: Design for competitiveness to reduce factory complexity ~80% of machineries is already connected energy consumption 3-80% Digitalization: Expanding IIoT1 & digital solutions to increase productivity, quality & flexibility Electrification: Improving energy efficiency through curing electrification & B.E.M.S.2 Automation: High tech automation solutions in process plus finishing, handling & material flow MANUFACTURING Digital Twin -12% of semifinished commonality across the whole production
Page 28
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 27 FY 2026 Guidance Targeting solid organic growth & profitability improvement, while sustaining sound cash generation despite higher taxes € billion 2026 E Volumes: ~ +1% ÷ +2% Price/Mix: ~ +2% Organic growth: +3% ÷ +4% Forex & perimeter: -4.5% ÷ -2.5% Guidance Net Sales 6.78 ~ 6.7 ÷ 6.9 16%Adj. EBIT Margin ~ 16% CapEx % of sales 0.42 6.2% ~ 0.45 ~ 6.5% 2025 A slightly improving YoY • Solid operating cash flow generation confirmed (Free Cash Flow conversion >70%) • Higher taxes due to expiration of tax benefits in ItalyNet Cash Flow bef. dividends & convertible bond 0.58 ~ 0.5 Net Financial Position 1.1 ~ 1.2 Leverage Net debt / adj. EBITDA ~0.7x ~ 0.75x Including ~€0.25B impact (delta Net Debt + option strike price) related to the exercise of the option to increase the stake in Jining Shenzhou Tyre Co. from 49% up to 70% • In line with last year dividend policy (~50% of group net profit), the Board will propose a dividend of €0.24/share, for a total of ~€260M. • Considering the solid 2025 results and lower leverage, an additional dividend of €0.10/share will also be proposed, for ~€109M. • Overall, the proposed total dividend amounts to €0.34/share, corresponding to a total distribution of ~€369M.
Page 29
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 28 Agenda 1 KEY MESSAGES 2 PIRELLI & C. – FY 2025 PRELIMINARY RESULTS 3 FY 2026 OUTLOOK AND TARGETS 4 APPENDIX
Page 30
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 29 Economic results summary 1 Adjustments refers to one-off, non-recurring and restructuring expenses to the amount of €83.5M (€43.8M in 2024). With referen ce only to EBIT, amortization of intangible assets recognized as a consequence of Business Combinations amounting to €106.7M (€113.7M in 2024). € million -0.1 p.p.
Page 31
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 30 Consolidated Balance Sheet 1. Total net financial debt = net financial position excluding non-current financial receivables and non-current derivative financial instruments € million
Page 32
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 31 Net Cash Flow € million 1Q 2025 2Q 2025 3Q 2025 4Q 2025 4Q 2024 FY 2025 FY 2024 Budget FY’25 Adjusted Operating income (EBIT) 279.8 278.5 277.2 245.9 244.6 1,081.4 1,060.5 1,130.1 Amortiz. & depreciations (excl. PPA amortiz.) 119.2 115.4 115.1 117.2 117.9 466.9 459.0 480.8 Investments in tangible and intangible assets (Capex) (60.0) (68.0) (95.5) (196.2) (179.2) (419.7) (414.9) (420.0) Increase in right of use (28.3) (43.3) (25.5) (15.8) (29.6) (112.9) (118.8) (140.8) Change in working capital/other (865.7) 55.4 (11.1) 829.9 802.4 8.5 3.0 32.7 Operating Cash Flow (555.0) 338.0 260.2 981.0 956.1 1,024.2 988.8 1,082.8 Financial income/(expenses) paid (49.1) (67.6) (37.8) (45.8) (69.6) (200.3) (249.4) (213.8) Taxes paid (31.6) (35.0) (45.3) (42.3) (41.0) (154.2) (158.5) (187.8) Cash-out for non recurring items and restructuring costs / other (12.6) (9.9) (19.3) (10.9) (10.6) (52.7) (47.4) (50.0) Dividend paid to minorities 0.0 (0.4) (6.2) (2.5) 0.1 (9.1) (6.4) (19.1) Exchange rates difference/other (29.8) (75.0) (8.0) 22.9 66.8 (89.9) 40.3 (27.0) Net Cash Flow before extr. oper. / equity transactions / divid. (678.1) 150.1 143.6 902.4 901.8 518.0 567.4 585.1 Extraordinary operations (18.6) 42.9 (2.4) 37.4 (11.1) 59.3 (33.5) (35.1) Net Cash Flow before dividends & bond convertion (696.7) 193.0 141.2 939.8 890.7 577.3 533.9 550.0 Bond Convertion 496.5 496.5 Net Cash Flow before dividends (696.7) 193.0 141.2 1,436.3 890.7 1,073.8 533.9 550.0 Dividends paid by Parent 0.0 (249.2) (0.4) (0.4) (0.3) (250.0) (198.0) (250.0) Net Cash Flow (696.7) (56.2) 140.8 1,435.9 890.4 823.8 335.9 300.0
Page 33
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 32 ESG Indices: a globally acknowledged sustainability leadership Source: third party official rankings Major rankings 2025/early 2026 Positioning in the reference sector S&P Dow Jones Sustainability Indices Top 1% - The only tyre maker Prime status - Top score Auto Components ESG Leader Platinum A LIST– Max score status @19/02/2026 Top Score Auto Components and Automotive sector S&P Sustainability Yearbook CDP – Climate List MSCI – ESG Ratings Sustainalytics – ESG Risk Rating Ecovadis – Sustainability Rating ISS – ESG Corporate Rating CDP – Supplier Engagement A LIST– Max score Score 86 TOP 1% A A B AA 8 82 Top score Tyre industry - Negligible risk; 2026 ESG Global, Regional, Industry LeaderSUSTAINALYTICS
Page 34
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 33 Targets 1. Frequency Index(FI): ∑(Fatalities + Serious lost time injuries + Lost time injuries ) x 1.000.000/ worked hours . If calculated based on 200.000 hours worked, Index 2025 is 0,24, Index 2024 is 0,28, targets are ~ 0,2 @2025 and <0,2 @2030; 2. Science Based Targets initiative (SBTi) approved; 4, IPBES: Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services – 5 Drivers are: resources exploitation, pollution, invasive species, climate change, land/water/sea use change; 6. PZEROE measure 255/50R20 - IPcode 42871 - thanks to a combination of physical segregation and mass balance approach. Bio-based materials are natural rubber, textile reinforcements, bio-chemicals, bio-resins and lignin, while recycled materials are metallic reinforcements, chemicals and - through mass balance - synthetic rubber, silica and carbon black; 7. IPcode 35837 285/45R22 XL LR ncs 114 Y P-ZERO Summer NCS - thanks to a combination of physical segregation and mass balance approach. Bio -based and recycled content is at least 31,7% and 38,3% respectively. Bio-based materials are natural rubber, textile reinforcements and bio-chemicals, while recycled materials are silica from rice husk ash, reclaimed rubber, recycled steel and – through mass balance – synthetic rubber, carbon black and silica. Full Pirelli sustainability plan and targets available on pirelli.com; Full 2025 sustainability related performances will be available in 2025 Pirelli Annual Report, Sustainability Statement section. -60% vs 2018 -27% vs 2018 -80% vs 2018 -30% vs 2018 CARBON NEUTRALITY NET ZERO 2040 SBTi validated CO2 absolute emissions Scope 1+22 CO2 absolute emissions Scope 32 NET ZERO @2040 (Scope 1+2+3, SBTi validated) 100% of electricity purchased from the grid is renewable Primary data available covering >90% of RM suppliers’ total emissions -57.1% vs 2018 -26.2% vs 2018 35% >70% >50% >80% Volumes A+B (Rolling Resistance and Wet Grip) Best product available on the market 6 Efficiency & Safety Bio-based & Recycled reducing rolling resistance, never compromising on safety 34.5% 58.5%6 ≥80% constantly ≥80% constantly ~1 <1 Accident Frequency Index1 Global Sustainable engagement Index Safety first Engagement & Retention Towards zero accident at work leveraging on employees listening and experience 83% 1.41 100% 100% -36% vs 2015 -45% vs 2015 Specific water withdrawal % on all Pirelli Industrial sites & track test areas Freshwater Biodiversity reducing dependency and preserving water quality Biodiversity action Plan covering the five IPBES4 drivers5 55% -34.6% vs 2015 -60% vs 2015-51.4% vs 2015 High water stress areas All group sites material innovation to increase non-fossil origin: PZERO E6, our lighthouse on the market: Sustainability: deep dive on 2025 achievements Actual 2024 Actual 2025 2025 Targets 2030 -27,5% 100% 83% -43,1% -63,3% >707 39,5% -54,3% 1,21
Page 35
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 34 Pirelli manufacturing footprint 1. 49% Joint Venture with the Hixih Group 2. 63% Joint Venture with PT Astra Otoparts U.S. Rome – Car Brazil Campinas – Car / Moto Feira de Santana – Car Argentina Merlo – Car Mexico Silao – Car U.K. Burton – Semi-finished Carlisle – Car Indonesia Subang – Moto (JV2) China Yanzhou – Car / Moto Jiaozuo – Car Shenzhou – Car (JV)1 Russia Kirov – Car Voronezh – Car Turkey Izmit – Car Italy Germany Breuberg – Car / Moto Romania Slatina – Car Bollate – Cycling Settimo – Car
Page 36
PIRELLI FY 2025 PRELIMINARY RESULTS Wednesday, 25 February, 2026 35 Disclaimer In General. This disclaimer applies to this document and any oral comments of any person presenting it. This document, taken together with any such oral comments, is referred to herein as the “Presentation”. This document has been prepared by Pirelli & C. S.p.A. (“Pirelli” or the “Company” and, together with its subsidiaries the “Group”). The Presentation is being furnished to you for information purposes only and for use in presentations of the results and strategies of the Group. No distribution of this Presentation. This Presentation is being furnished to you solely for your information and may not be reproduced, in whole or in part, or redistributed to any other individual or legal entity. Forward-looking statements. ““Forward-looking statements” (which expression shall include opinions, predictions or expectations about any future event) that may be contained in the Presentation are based on a variety of estimates and assumptions by the Group, including, among others, estimates of future operating results, the value of assets and market conditions. These estimates and assumptions are inherently uncertain and are subject to numerous potential risks that are outside of the Group’s control, including, but not limited to, the regulatory environment in Italy and internationally. There can be no assurance that the assumptions made in connection with the forward-looking statements will prove accurate, and actual results may differ materially. The inclusion of the forward-looking statements herein should not be regarded as an indication that the Group considers the forward-looking statements to be a reliable prediction of future events and the forward-looking statements should not be relied upon as such. Neither the Group nor any of its representatives has made or makes any representation to any person regarding the forward-looking statements and none of them intends to update or otherwise revise the forward-looking statements to reflect circumstances existing after the date when made or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the forward-looking statements are later shown to be in error. The forward-looking statements do not take into account any additional negative effects that may arise from impacts on the global market in which Pirelli operates and more generally on the macroeconomic scenario. No update. The information and opinions in this Presentation is provided to you as of the dates indicated and the Group does not undertake to update the information contained in this Presentation and/or any opinions expressed relating thereto after its presentation, even in the event that the information becomes materially inaccurate, except as otherwise required by applicable laws. Verbal explanation. This Presentation has to be accompanied by a verbal explanation. A simple reading of this Presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding. No offer to purchase or sell securities. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the “Other Countries”), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries. Rounding. Due to rounding, numbers presented throughout this Presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Miscellanea. This Presentation has been prepared on a voluntary basis. Pirelli is therefore not bound to prepare similar presentations in the future, unless where provided by law. The data contained in this presentation are preliminary in nature and refer to the date hereof and, therefore, may be subject to further variations. Please note that these preliminary data are subject to review by the independent auditors that still have to complete their necessary analysis in order to release their report. The 2025 final result will be approved by the Board of the Directors scheduled on the 26th of March 2026 and will be disclosed to the market according to, and in the terms set for by, the applicable laws and regulations. Neither the Company nor any member of the Group nor any of its or their respective representatives, directors, employees or agents accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it. Fabio Bocchio, the manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis, paragraph 2, of the Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records. Non-IFRS and Other Performance Measures This Presentation contains certain items as part of the financial disclosure which are not defined under IFRS. Accordingly, these items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other entities. Pirelli management has identified a number of “Alternative Performance Indicators” (“APIs”). These APIs (i) are derived from historical results of Pirelli and are not intended to be indicative of future performance, (ii) are unaudited non-IFRS financial measures derived from the Financial Statements, and (iii) are not an alternative to financial measures prepared in accordance with IFRS. The APIs presented herein are EBIT, EBIT margin, EBITDA, EBITDA margin, net income and net income margin. In addition, this Presentation includes certain measures that have been adjusted by us to present operating and financial performance net of any non-recurring events and non-core events. The adjusted indicators are EBITDA adjusted, EBIT adjusted and net income adjusted. In order to facilitate the understanding of our financial position and financial performance, this Presentation contains other performance measures, such as Net Financial Position, Operating Cash Flow, Net Cash Flow before Dividends and extraordinary Operations, Net Cash Flow before Dividends, Net Cash Flow, CapEx (Capital Expenditure), Liquidity Margin and ROIC (Return On Invested Capital). These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results. These measures are used by our management to monitor the underlying performance of our business and operations. Similarly entitled non-IFRS financial measures reported by other companies may not be calculated in an identical manner, consequently our measures may not be consistent with similar measures used by other companies. Therefore, investors should not place undue reliance on this data.