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

INTERIM FINANCIAL

REPORT

AT SEPTEMBER 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

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

TABLE OF CONTENTS
MACROECONOMIC AND MARKET SCENARIO	6
SIGNIFICANT EVENTSOF THE FIRST NINE MONTHS	10
GROUP PERFORMANCE AND RESULTS	13
OUTLOOK FOR 2024	25
SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE QUARTER	27
ALTERNATIVE PERFORMANCE INDICATORS	28
OTHER INFORMATION	31
FINANCIAL STATEMENTS	37
DECLARATION OF THE MANAGER RESPONSIBLE FOR THE PREPARATION OF THE
CORPORATE AND ACCOUNTING DOCUMENTATION PURSUANT TO THE PROVISIONS OF
ARTICLE 154-BIS, PARAGRAPH 2 OF THE LEGISLATIVE DECREE 58/1998…………………...46

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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.

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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

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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 Documents4	Fabio Bocchio
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 (October 4, 2017). Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025.

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MACROECONOMIC AND MARKET SCENARIO

Economic Overview

During the first nine months of 2024, despite persistent geopolitical tensions, the global economy remained resilient, with overall growth for the third quarter which stood at +2.7%, (+2.6% for the second quarter and +2.7% for the first three months of the year). The global inflation rate stood at 4.3% for the first nine months of 2024, averaging 4.0% for the third quarter of 2024, in decline compared to 4.9% for the third quarter of 2023. Inflation trends in the main regions, for the first nine months of 2024, varied from 4.2% in Brazil, to 3.0% for the US and 2.6% for the European Union.

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

	1Q 2023	2Q 2023	3Q 2023	4Q 2023
EU	1.2	0.5	0.1	0.4
US	2.3	2.8	3.2	3.2
China	4.5	6.3	4.9	5.2
Brazil	3.8	3.3	2.4	2.2
World	2.6	3.1	2.8	2.8

1Q 2024	2Q 2024	3Q 2024
0.6	0.8	0.9
2.9	3.0	2.7
5.3	4.7	4.6
2.1	2.8	3.2
2.7	2.6	2.7

Note: Percentage change compared to the same period of the previous year. Preliminary data for 3Q 2024 for the EU, the US and China and

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

Consumer Prices, Change in Year-on-Year Percentages

	1Q 2023	2Q 2023	3Q 2023	4Q 2023		1Q 2024	2Q 2024	3Q 2024
EU	9.4	7.2	5.7	3.4	2.8	2.6	2.4
US	5.8	4.0	3.5	3.2	3.2	3.2	2.6
China	1.3	0.1	-0.1	-0.3	0.0	0.3	0.5
Brazil	5.3	3.8	4.6	4.7	4.3	3.9	4.4
World	6.9	5.3	4.9	4.5		4.5	4.4	4.0

So urce: National statistics offices and S&P Global M arket Intelligence for World estimate, October 2024.

In the European Union, growth in GDP was more contained, compared to other geographic regions, but had improved during the third quarter: +0.9% growth, compared to +0.8% for the second quarter and +0.6% for the first. Growth was underpinned by the performance of the economies in Spain and France - the latter thanks to the positive effect of the Olympic Games - which compensated for the more subdued performances in Germany and Italy. Inflation recorded a steady fall during the year: 2.4% for the third quarter, compared to 2.6% for the second quarter and 2.8% for the first. On the basis of this trend, the European Central Bank decided to continue with its loosening of monetary policy. Following the cut in interest rates by 25 basis points in June, further reductions of the same amount were made in September and October.

In the United States, positive performances in the labour market and in consumer spending sustained GDP growth, which for the third quarter of 2024 recorded +2.7%, (+3.0% for the second quarter and +2.9% for the first quarter). Inflation for the third quarter of 2024 fell to 2.6%, from 3.2% for the previous quarter, allowing the Fed to cut the benchmark rate by 50 basis points in September, which was the first reduction since March 2020.

GDP growth in China for the third quarter of 2024 equalled +4.6%, (+4.7% for the second quarter and +5.3% for the first quarter), impacted by the weakness in domestic demand, which continued to be penalised by the crisis in the real estate sector. Various measures to support the economy were

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announced during the third quarter, and the central bank cut interest rates in July, September and October.

A positive performance was recorded by the Brazilian economy which grew by +3.2%, compared to +2.4% for the corresponding period of 2023, thanks to the positive dynamics of domestic demand and to state aid policies, which limited the impact of the floods in Rio Grande do Sul.

The depreciation of the real in the second and third quarters rekindled inflation, which stood at 4.4% for the period, compared to 3.9% for the previous three months, with the Brazilian Central Bank deciding to intervene by raising interest rates by 25 basis points in September.

Exchange Rates

The euro strengthened slightly during the course of the first nine months of 2024, averaging US$ 1.09 per euro, compared to an average of US$ 1.08 during the same period in 2023. The euro's performance during the third quarter (averaging US$ 1.10 for the period, compared to US$ 1.08 the previous quarter), reflected the strengthening of the euro from US$ 1.07 at the end of June, to US$ 1.12 at the end of September, with the euro being bolstered by the prospect of an imminent interest rate cut by the Fed, which arrived in September.

Key Exchange Rates		1Q			2Q			3Q			First nine months
		2024		2023		2024		2023		2024		2023	2024	2023
US$ per euro	1.09		1.07		1.08		1.09		1.10		1.09		1.09	1.08
Chinese renminbi per US$	7.10		6.85		7.11		7.01		7.11		7.17		7.11	7.01
Brazilian real per US$	4.95		5.20		5.22		4.95		5.54		4.88		5.24	5.01

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

The slowdown in the Chinese economy during 2024, coupled with the gradual cut in interest rates during the year, weakened the renminbi, whose average exchange rate against the US dollar for the first nine months of 2024 stood at 7.11, with a depreciation of -1.3% compared to the same period of 2023 (-1.7% against the euro).

The Brazilian real averaged 5.24 against the US dollar for the first nine months of 2024, a decline of -4.5%, compared to the same period of 2023, (a depreciation of -4.8% for the real against the euro in the same period). The decrease in the differential between US and euro interest rates and the growing risks on the fiscal and monetary front in Brazil, progressively weakened the real over the course of the year: from 4.95 real per US dollar for the first quarter, to 5.54 for the third quarter.

Raw Materials Prices

During the first nine months of 2024, geopolitical and climatic factors, as well as trends in supply and demand, led to differing price trends for the main raw materials.

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Raw Materials Prices

Brent (US$ / barrel)

European natural gas (€ / MWh)

Butadiene (€ / tonne)

Natural rubber TSR20 (US$ / tonne)

	1Q				2Q				3Q			First nine months
2024	2023	% chg.	2024	2023	% chg.	2024	2023	% chg.	2024	2023	% chg.
81.8	82.2	0%		85.0	78.0	9%		78.4	86.1	-9%		81.7	82.1	0%
28	53	-48%		32	35	-9%		36	34	5%		32	41	-22%
812	970	-16%		978	937	4%		1,027	722	42%		939	876	7%
1,574	1,373	15%		1,684	1,345	25%		1,757	1,338	31%		1,672	1,352	24%

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

During the first nine months of 2024, the average price of Brent crude stood at US$ 81.7 per barrel, substantially consistent with US$ 82.1 per barrel for the first nine months of 2023. During the course of the third quarter, the price of Brent fell, reflecting a weaker than expected global demand, particularly in China, despite the high volatility linked mainly to geopolitical risks and to market fears over possible interruptions in the supply of crude oil, due to the war in the Middle East.

Natural gas prices in Europe during the first nine months of 2024 averaged euro 32 per MWh, a decline of -22% compared to euro 41 during the corresponding period of 2023. During the third quarter of 2024, despite high European stockpile levels, the average price for natural gas equalled euro 36 per MWh, an increase of +5% compared to the third quarter of 2023, as a result of geopolitical risks and the growth in demand, particularly from the Asian markets.

The price of butadiene, the main raw material in the production of synthetic rubber, rose by +7% in the European market during the first nine months of 2024, compared to the same period of 2023, to euro 939. During the third quarter, the production of butadiene was limited by either planned closures for maintenance or the unplanned shutdowns of several production facilities, resulting in an almost stable year-on-year demand that sustained butadiene prices, (up by +4.9% compared to the previous quarter, to euro 1,027 per tonne), bringing the change, compared to the third quarter of 2023, to +42%.

The average price of natural rubber for the first nine months of 2024, recorded an increase of +24%, compared to the same period of 2023, to US$ 1,672 per tonne (US$ 1,352 per tonne for the first nine months of 2023), due to a combination of impacts: the pace of recovery in demand in key sectors, adverse meteorological conditions which impacted the supply from producing countries, exchange rates and regulatory factors. Natural rubber prices reached an average of US$ 1,757 per tonne for the third quarter, up by +31% compared to the same quarter of the previous year, the highest level in 11 quarters.

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Trends in Car Tyre Markets

During the first nine months of 2024, the car tyre market recorded a global level growth in volumes of +1.1%, compared to the same period of 2023.

Volume performance per channel differed:

• -0.6%for Original Equipment, due to the fall in demand in Europe;
• +1.7% for the Replacement channel, due to the strong recovery in demand in Europe and North America.

Demand was more sustained for Car ≥18", which recorded growth of +5.0% compared to the first nine months of 2023 (+1.4% for Original Equipment, +7.5% for Replacement), with a positive performance particularly in North America and Europe.

Market demand for Car ≤17" was stable during the first nine months of 2024, compared to the same period of the previous year.

Trends in Car Tyre Markets

% change year-on-year	1Q 2024	2Q 2024	3Q 2024
Total Car Tyre Market
Total	2.1	1.1	0.2
Original Equipment	1.2	0.5	-3.4
Replacement	2.5	1.3	1.4
Market ≥ 18"
Total	6.5	5.6	2.8
Original Equipment	1.5	3.2	-0.4
Replacement	10.1	7.5	5.0
Market ≤ 17"
Total	0.8	-0.2	-0.6
Original Equipment	1.1	-0.9	-4.9
Replacement	0.7	-0.0	0.7
Source: Pirelli estimates.

9M 2024

1.1

-0.6 1.7

5.0

1.4

7.5

0.0

-1.6 0.5

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