Pirelli & C S p A : Interim Financial Report at30 June 2024

HALF-YEAR

FINANCIAL REPORT

AT JUNE 30, 2024

PIRELLI & C. Società per Azioni (Joint Stock Company)

Milan Office

Viale Piero e Alberto Pirelli n. 25

Share Capital Euro 1,904,374,935.66

Milan Company Register No. 00860340157

REA (Economic Administrative Index) No. 1055

1

PIRELLI & C. S.p.A. - MILAN

TABLE OF CONTENTS
MACROECONOMIC AND MARKET SCENARIO	6
SIGNIFICANT EVENTS OF THE HALF-YEAR	10
GROUP PERFORMANCE AND RESULTS	13
OUTLOOK FOR 2024	25
SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE HALF-YEAR	27
ALTERNATIVE PERFORMANCE INDICATORS	28
OTHER INFORMATION	31
CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AT JUNE 30, 2024....	35
CERTIFICATIONS………………………………………………………………………………….…….100

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The Board of Directors1
Chairman	Jiao Jian
Executive Vice Chairman	Marco Tronchetti Provera
Chief Executive Officer	Andrea Casaluci
Director	Chen Aihua
Director	Zhang Haitao
Director	Chen Qian
Independent Director	Alberto Bradanini
Independent Director	Michele Carpinelli
Independent Director	Domenico De Sole
Independent Director	Fan Xiaohua
Independent Director	Marisa Pappalardo
Independent Director	Grace Tang
Independent Director	Roberto Diacetti
Independent Director	Paola Boromei
Independent Director	Giovanni Lo Storto
Secretary of the Board	Alberto Bastanzio
Board of Statutory Auditors2
Chairman	Riccardo Foglia Taverna
Statutory Auditors	Maura Campra
Statutory Auditors	Francesca Meneghel
Statutory Auditors	Teresa Naddeo
Statutory Auditors	Riccardo Perotta
Alternate Auditors	Franca Brusco
Alternate Auditors	Roberta Pirola
Alternate Auditors	Enrico Holzmiller

1. Appointment: July 31, 2023. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025.
2. Appointment: May 28, 2024. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2026.

3

Audit, Risk and Corporate Governance Committee

Chairman - Independent Director	Fan Xiaohua
Independent Director	Giovanni Lo Storto
Independent Director	Roberto Diacetti
Independent Director	Michele Carpinelli
	Chen Aihua
Committee for Related Party Transactions
Chairman - Independent Director	Marisa Pappalardo
Independent Director	Giovanni Lo Storto
Independent Director	Michele Carpinelli
Nominations and Successions Committee
Chairman	Marco Tronchetti Provera
Independent Director	Domenico De Sole
	Chen Aihua
	Zhang Haitao

Remuneration Committee
Chairman - Independent Director	Grace Tang
Independent Director	Michele Carpinelli
Independent Director	Paola Boromei
Independent Director	Alberto Bradanini
	Chen Aihua

4

Strategies Committee
Chairman	Marco Tronchetti Provera
	Jiao Jian
	Andrea Casaluci
Independent Director	Domenico De Sole
Independent Director	Alberto Bradanini
Independent Director	Roberto Diacetti
	Chen Qian
	Zhang Haitao
Sustainability Committee
Chairman	Marco Tronchetti Provera
	Jiao Jian
	Andrea Casaluci
Independent Director	Giovanni Lo Storto
Corporate General Manager3	Francesco Tanzi
Manager responsible for the preparation
of the Corporate Financial Documents	Fabio Bocchio4
Independent Auditing Firm5	PricewaterhouseCoopers S.p.A.

The Supervisory Board (as provided for by the Organisational Model 231, adopted by the Company), is chaired by Prof. Carlo Secchi.

1. Appointment: August 3, 2023.
2. Position confirmed by the Board of Directors' Meeting on August 3, 2023.
3. Appointment: August 1, 2017, effective from the date of the commencement of trading of Pirelli shares on the stock exchange on October 4, 2017). Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025.

5

MACROECONOMIC AND MARKET SCENARIO

Economic Overview

The first half-year of 2024 saw the consolidation of global growth, (+2.6% for the second quarter, +2.7% for the first three months of the year), thanks to the resilience of the US economy, and the gradual recovery of the European economy. Global inflation remained at 4.5% for the second quarter also, essentially stable compared to the levels of the previous two quarters.

Economic Growth, Year-On-Year Percentage Change in GDP

	1Q 2023	2Q 2023	3Q 2023	4Q 2023	1Q 2024	2Q 2024
EU	1.1	0.5	0.2	0.4		0.6	0.7
US	1.7	2.4	2.9	3.1		2.9	3.1
China	4.5	6.3	4.9	5.2		5.3	4.7
Brazil	3.7	3.4	2.4	2.2		1.7	1.5
World	2.4	3.0	2.7	2.8		2.7	2.6

Note: Percentage change compared to the same perio d of the previous year. Preliminary data for 2Q 2024 for the EU, the US and China and

estimates for the other countries and regions. Source: National statistics offices and S&P Global M arket Intelligence, July 2024.

Consumer Prices, Change in Year-on-Year Percentages

	1Q 2023	2Q 2023	3Q 2023	4Q 2023		1Q 2024	2Q 2024
EU	9.4	7.2	5.7	3.4	2.8	2.6
US	5.8	4.0	3.5	3.2	3.2	3.2
China	1.3	0.1	-0.1	-0.3	0.0	0.3
Brazil	5.3	3.8	4.6	4.7	4.3	3.9
World	6.9	5.3	4.9	4.5		4.5	4.5

Source: National statistics offices and S&P Global Market Intelligence for World estimate, July 2024.

In the European Union, GDP growth during the second quarter (+0.7%, compared to +0.6% for the first quarter) was buoyed by the services sector, which offset the downturn in the manufacturing sector. Inflation fell to 2.6% for the second quarter (2.8% for the first quarter), permitting the European Central Bank to cut its benchmark interest rate, which had remained fixed since September 2023, by 25 basis points.

Positive developments in the labour market, together with consumer spending, lent support to GDP growth in the US, which recorded +3.1% for the second quarter of 2024, an acceleration compared to growth in the first quarter, driven by consumer spending and investments. Inflation for the second quarter of 2024 remained unchanged (+3.2%) compared to the first quarter of 2024, prompting the Fed to reduce their expectations to only one benchmark rate cut during the course of 2024, instead of the three that were previously expected.

GDP growth for the second quarter in China equalled +4.7%, having decelerated compared to +5.3% for the first quarter of 2024, mainly due to weak domestic demand, which was partially compensated by industrial activity.

In Brazil, the floods in April in the state of Rio Grande do Sul, impacted economic activity with second quarter GDP estimated at +1.5%, having slowed compared to +1.7% for the preceding quarter.

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Despite the drop in inflation (+3.9% for the second quarter of 2024, compared to +4.3% for the first quarter), the Brazilian Central Bank carried out only one interest rate cut of 25 basis points, due to the depreciation of the Brazilian real during the second quarter, and the narrowing of the interest rate differential with the US.

Exchange Rates

The divergence between inflation trends and the monetary policies of the central banks, continued to drive the exchange rate momentum during the first half-year of 2024.

Key Exchange Rates	1Q			2Q			1HY
		2024		2023		2024		2023		2024		2023
US$ per euro	1.09		1.07		1.08		1.09		1.08		1.08
Chinese renminbi per US$	7.10		6.85		7.11		7.01		7.11		6.93
Brazilian real per US$	4.95		5.20		5.14		4.95		5.08		5.07

Note: Average exchange rates for the period. Source: National central banks.

The US dollar/euro exchange rate remained unchanged for the first half-year of 2024, compared to the same period of the previous year, with the US dollar averaging 1.08 against the euro after hitting a low of US$ 1.10 per euro at the beginning of the year, before recovering to US$ 1.07 in June.

In China, the easing of the monetary policy in support of the economy, as well as uncertainties over possible new tariffs especially by the US and also by the European Union, weakened the renminbi, which averaged 7.11 against the US dollar for the first half-year of 2024, depreciating by -2.5% compared to the same period of 2023 (renminbi 6.93).

The average exchange rate for the Brazilian real remained substantially stable against the US dollar during the first half-year of 2024, compared to the same period in 2023, averaging 5.08 (5.07 for first half-year of 2023). The narrowing of the differential between US and euro interest rates, and the growing risks on the fiscal and monetary front, gradually weakened the real against the US dollar which shifted from 4.95 for the first quarter, to 5.14 for the second quarter with a low of 5.39 in June.

Raw Materials Prices

Raw materials prices rose gradually during the course of the first six months of 2024, following the trajectory towards normalisation during 2023.

Raw Materials Prices				1Q				2Q				1HY
			2024	2023	% chg.		2024	2023	% chg.		2024	2023	% chg.
Brent (US$ / barrel)	81.8	82.2	0%		85.0	78.0	9%		83.4	80.1	4%
European natural gas (€ / MWh)	28	53	-48%		32	35	-9%		30	44	-33%
Butadiene (€ / tonne)	812	970	-16%		978	937	4%		895	953	-6%
Natural rubber TSR20 (US$ / tonne)	1,574	1,373	15%		1,684	1,345	25%		1,629	1,359	20%

Note: Data are averages for the period. Source: Reuters, ICIS.

7

The average price for crude oil and natural gas remained relatively stable for the first half-year, despite fluctuations caused by geopolitical uncertainties. Brent crude averaged US$ 83.4 per barrel for the first half-year of 2024, (+4% compared to US$ 80.1 for the same half-year of 2023), in the presence of increased volatility. Monthly trends for the first six months of 2024, showed a peak of US$ 89 per barrel in April, which coincided with the raid launched by Iran on Israel. Fears of escalating tensions between the two countries then subsided in the following months, and the price of Brent fell to US$ 83 in June.

Natural gas prices in Europe (NGT) during the first half-year of 2024 averaged euro 30 per MWh, (down -33% compared to euro 44 for the corresponding period of 2023, a price that is still in a normalisation phase, following the interruption of gas flows from Russia in 2022 due to the sanctions associated with the Russia-Ukraine conflict). Despite high European stockpile levels, prices increased in the second quarter (+15% compared to the first three months of 2024), driven by an increase in global demand particularly from the Asian markets.

The price of butadiene also fell during the first half-year of 2024, due to the fall in the price of natural gas and lower logistics costs. The average price stood at euro 895 per tonne (-6% compared to the first half-year of 2023), with a progressive upwardly trend particularly during the second quarter (+21% compared to the first three months of the year), as a result of the reduction in market supply, and a reduction in the supply of natural rubber.

The average price of natural rubber for the first half-year of 2024, recorded an increase of +20% compared to the same period of 2023, to US$ 1,629 per tonne (US$ 1,359 per tonne for the first half-year of 2023), due to adverse weather conditions which impacted the supply by producing countries.

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Trends in Car Tyre Markets

During the first half-year of 2024, the car tyre market recorded global level volume growth of +1.5%, compared to the same period of 2023.

Volume performance per channel differed:

• +0.8% for the Original Equipment channel, thanks to growth in APAC and North America, which offset the decline in demand in Europe and South America;
• +1.8% for the Replacement channel, due to the strong recovery in demand in North America and Europe.

Demand was more sustained for Car ≥18", which recorded growth of +6.1% compared to the first half-year of 2023 (+2.3% for Original Equipment, +8.8% for Replacement), with a positive performance particularly in North America and Europe.

Market demand for Car ≤17' was stable during the first half-year of 2024, compared to the same period of the previous year.

Trends in Car Tyre Markets

% change year-on-year	1Q 2023	2Q 2023	3Q 2023	4Q 2023	2023	1Q 2024	2Q 2024
Total Car Tyre Market
Total	-0.9	2.3	1.1	6.4	2.2	2.1	0.9
Original Equipment	6.1	16.6	4.7	9.6	9.1	1.2	0.5
Replacement	-3.5	-2.4	-0.1	5.2	-0.3	2.5	1.1
Market ≥ 18"
Total	5.4	8.6	8.1	12.0	8.5	6.5	5.6
Original Equipment	13.5	22.1	7.8	11.3	13.5	1.5	3.2
Replacement	0.2	0.3	8.4	12.5	5.2	10.1	7.5
Market ≤ 17"
Total	-2.6	0.6	-0.7	4.9	0.5	0.8	-0.5
Original Equipment	2.7	14.0	3.2	8.8	7.0	1.1	-0.9
Replacement	-4.3	-3.0	-1.8	3.7	-1.4	0.7	-0.3

Source: Pirelli estimates.

1HY 2024

1.5

0.8

1.8

6.1

2.3

8.8

0.1

0.1

0.2

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