Pirelli & C S p A : Interim Financial Report at31 March 2024

INTERIM FINANCIAL

REPORT

AT MARCH 31, 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 EVENTS OF THE QUARTER	10
GROUP PERFORMANCE AND RESULTS	12
OUTLOOK FOR 2024	22
SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE QUARTER	23
ALTERNATIVE PERFORMANCE INDICATORS	24
OTHER INFORMATION	27
FINANCIAL STATEMENTS	34
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…………………...43

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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	Antonella Carù
Statutory Auditors	Francesca Meneghel
Statutory Auditors	Teresa Naddeo
Statutory Auditors	Alberto Villani
Alternate Auditors	Franca Brusco
Alternate Auditors	Maria Sardelli

1. Appointment: July 31, 2023. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2025.
2. Appointment: June 15, 2021. Expiry: Shareholders' Meeting convened for the approval of the Financial Statements at December 31, 2023.

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Alternate Auditors	Marco Taglioretti
Audit, Risk, Sustainability 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 Manager 3	Francesco Tanzi
Manager responsible for the preparation
of the Corporate Financial Documents	Fabio Bocchio 4
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.

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MACROECONOMIC AND MARKET SCENARIO

Economic Overview

For the first quarter of 2024, global GDP grew by +2.5% year-on-year, thanks to the resilience of the US and Chinese economies, and despite geopolitical tensions in the Middle East.

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

	1Q 2023	2Q 2023	3Q 2023	4Q 2023	1Q 2024
EU	1.2	0.6	0.1	0.2		0.5
US	1.7	2.4	2.9	3.1		3.0
China	4.5	6.3	4.9	5.2		5.3
Brazil	3.8	3.3	2.4	2.2		1.6
World	2.4	3.0	2.7	2.7		2.5

Note: P ercentage change compared to the same period of the previo us year. P reliminary data for 1Q 2024 for the EU, the US and China and

estimates fo r the other countries and regions. So urce: Natio nal statistics o ffices and S&P Global M arket Intelligence, A pril 2024.

Consumer Prices, Change in Year-on-Year Percentages

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

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

In the European Union, the economy remained weak (GDP growth of +0.5% for the first quarter). Monetary policy continued to weigh on the performance of domestic demand, while the rise in inflation decelerated (averaging +2.8% for the first quarter of 2024, +3.4% for the fourth quarter of 2023).

The trend for the US economy improved (+3.0% for the first quarter of 2024), sustained by consumer spending and investments, while inventories and foreign trade weighed on growth. Inflation for the first quarter of 2024 (+3.2%) remained unchanged compared to the fourth quarter of 2023, cooling expectations of possible Fed rate cuts in 2024.

Economic growth in China accelerated slightly during the first quarter of 2024 to +5.3% year-on-year, compared to +5.2% for the final quarter of 2023. This GDP performance was supported by the dynamics of consumer spending, and by investments in the manufacturing sector and infrastructure, while the real estate sector remained weak.

Economic indicators in Brazil during the first months of the year showed signs of recovery following economic stagnation in the second half of 2023. Its GDP is estimated to have grown by +1.6% for the first quarter of 2024, slowing from +2.2% for the previous quarter and +3.8% for the first quarter of 2023. The fall in inflation (4.3% for the first quarter of 2024, compared to 4.7% for the fourth

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quarter), allowed the central bank to continue its path of normalising interest rates with two further cuts of 50 basis points in the first quarter, bringing the benchmark interest rate to 10.75% at the end of March.

Exchange Rates

Divergences between inflation trends and the monetary policies of the central banks, continued to drive the exchange rate momentum during the first quarter of 2024.

Key Exchange Rates		1Q
			2024	2023	2022
US$ per euro	1.09	1.07	1.12
Chinese renminbi per US$	7.10	6.85	6.35
Brazilian real per US$	4.95	5.20	5.24

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

The narrowing of differences between interest rates in the US and the Eurozone during 2023, led to the gradual strengthening of the euro against the US dollar, which resulted in the euro averaging US$ 1.09 for the first three months of 2024, an appreciation of +1.2%compared to the same period in 2023 (US$ 1.07).

In China, the easing of monetary policy in support of the economy, weakened the renminbi, which averaged 7.10 against the US dollar for the first quarter of 2024, depreciating by -3.6% compared to the same period of 2023 (renminbi 6.85) and by -4.7% against the euro.

The Brazilian real strengthened during the first quarter of 2024, both against the US dollar (+4.9%, to an average of 4.95 Brazilian real, compared to 5.20 for the same period of the previous year) and against the euro (+3.7%, compared to the same period of 2023). The appreciation of the real was supported by a still wide interest rate difference in comparison to the USA and the Eurozone, despite the narrowing during the previous year.

Raw Materials Prices

There were differing trends for raw materials prices during the first three months of 2024, following the trajectory towards normalisation during 2023, after the peaks of 2022 caused by the Russia-Ukraine crisis.

Raw Materials Prices

Brent (US$ / barrel)

European natural gas (€ / MWh) Butadiene (€ / tonne)

Natural rubber TSR20 (US$ / tonne)

1Q

2024	% chg.	2023	% chg.	2022
81.4	-1%	82.2	-16%	97.4
28	-48%	53	-47%	100
812	-16%	970	-9%	1,067
1,573	15%	1,373	-23%	1,772

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

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Crude oil and natural gas prices remained contained during the first quarter despite geopolitical uncertainties. Brent crude averaged US$ 81.4 per barrel for the first quarter of 2024, declining by -1% compared to US$ 82.2 for the same quarter of 2023, but with increased volatility. Monthly performances in the first three months of 2024 showed an upward trend, from US$ 79 per barrel in January to US$ 84 in March, following the cut in production by OPEC+ countries, the conflict in the Gaza Strip and the interruptions to shipping in the Red Sea which began in December.

Natural gas prices (TTF) fell during the first quarter of 2024, averaging euro 28 per MWh (megawatt- hour), (down by -48% compared to euro 53 for the corresponding period of 2023, a price that reflected the interruption of the gas supply from Russia). Prices during the first three months of 2024 benefited from milder than expected temperatures, as well as from the increased use of liquefied natural gas (LNG), high European stockpile levels and the increased production of electricity from renewable sources in Europe.

The price of butadiene fell during the first quarter of 2024, due to the decrease in the price of natural gas, lower logistics costs and the prospects of a slowdown in global growth. The average price stood at euro 812 per tonne, down by -16% compared to the first quarter of 2023, but with a steady growth trend for the first three months of the year, which saw the quarterly average increased by +5% compared to the final quarter of the previous year.

The average price of natural rubber for the first quarter of 2024, increased by +15% compared to the same period of 2023, to US$ 1,573 per tonne (US$ 1,373 per tonne for the first three months of 2023). Similar to butadiene, the price of natural rubber gained strength during the first quarter. This recovery reflected the uncertainty of supply from producing countries such as Thailand, Malaysia and Indonesia, due to adverse weather conditions combined with a sustained demand from the automotive sector.

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Trends in Car Tyre Markets

During the first quarter of 2024, the car tyre market recorded a global level growth in volumes of +2.1%, compared to the same quarter of 2023.

Volume performance per channel differed:

• +1.2% for the Original Equipment channel, thanks to growth in APAC and North America, which offset the decline in demand in Europe and South America;
• +2.5% 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 a growth of +6.5% compared to the first quarter of 2023 (+1.5% for Original Equipment, +10.1% for Replacement), with a positive performance particularly in North America and Europe.

Market demand for Car ≤17" recorded growth of +0.8% for the first quarter of 2024, compared to the same period of the previous year (+1.1% for Original Equipment, +0.7% for Replacement).

Trends in Car Tyre Markets

% change year-on-year	1Q 2023	2Q 2023	3Q 2023	4Q 2023	2023	1Q 2024
Total Car Tyre Market
Total	-0.9	2.3	1.1	6.4	2.2	2.1
Original Equipment	6.1	16.5	4.7	9.6	9.1	1.2
Replacement	-3.5	-2.4	-0.1	5.2	-0.3	2.5

Market ≥ 18"

Total	5.4	7.3	8.2	12.0	8.2
Original Equipment	13.5	18.7	7.9	11.3	12.7
Replacement	0.2	0.3	8.4	12.5	5.2

6.5

1.5

10.1

Market ≤ 17"

Total	-2.6	0.9	-0.7	4.9	0.6
Original Equipment	2.7	15.5	3.2	8.8	7.4
Replacement	-4.3	-3.0	-1.8	3.7	-1.4
Source: Pirelli estimates.

0.8

1.1

0.7

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