The event comprised 80 stands, three conferences on the subjects of welfare, the young and women plus a packed programme of conventions and seminars. Visitors had the opportunity to personally confront the main public and private welfare organisations to be updated on the spot on their pension situation.

Pirelli decided to be an active protagonist at this exhibition, which wound its way between the past, present and future: from a pioneering past with its first formulae for workers’ welfare assistance, to working people of the future and welfare that also extends ever more towards the families.

The Pirelli Foundation made historic and archive material available for the occasion, necessary to testify to our commitment to a working reality which is increasingly made to measure for people.

http://www.giornatanazionaledellaprevidenza.it/parterre-gnp2012

The second initiative, Let’s Clean the Strehareti Forest, has become a tradition for our colleagues. And to confirm the sensitivity displayed by Pirelli Romania to that tradition, 180 volunteers took part.

The third and last project had our colleagues very much to the fore again, planting ornamental trees in a public area not far from the Intercampus football pitch.

But it’s not finished yet: next, participation in City Cross is on the cards, an event organised by the Romanian Olympic Committee. At the event called, Corporate Games, there will be a Pirelli football team, which will compete in a competition between multinationals.

• 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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EXPECTED 2014 CONVENTIONAL MOTO TYRE PRODUCTION 2 MILLION PIECES, GROWING TO 7 MILLION IN 2016

AT FULL OPERATION THE FACTORY WILL ACCOUNT FOR AROUND 25% OF PIRELLI’S TOTAL WORLDWIDE MOTO PRODUCTION

Pirelli has signed an agreement with Astra Otoparts, the  leading Indonesian automotive components maker, for the construction of a new factory in Indonesia, Pirelli’s first in the country, for the production of conventional motorcycle tyres.

The agreement was signed – on the occasion of a mission to Asia by the Italian Foreign Affairs Minister Giulio Terzi di Sant’Agata – by the Senior Vice President of Pirelli’s Moto Business Unit Uberto Thun and the CEO of Astra Otoparts, Siswanto Prawiroatmodjo. The signing was presided over by Terzi di Sant’Agata, the Indonesian Industry Minister M. S. Hidayat, the Minister for Trade and Investment Gita Wirjawan and the Italian ambassador in Jakarta Federico Failla.

The accord entails the creation of a joint venture in which Pirelli will hold the majority position with 60% of the capital and Astra will hold the remaining 40%. The joint venture will invest a total of 120 million dollars between 2012 and 2014 for the construction of a new factory.

Construction of the new factory, located a short distance from Jakarta, is expected to begin in the fourth quarter of 2012. The site will cover 25 hectares and when fully operated, in 2016, will employ 750 people.

The new factory is expected to become operational from the second half of 2013, with an estimated production of around 2 million conventional moto tyres in 2014 which when fully operational, in 2016, could reach 7 million pieces total. Of these, 3 million will be sold as Astra brands, while the remaining 4 million – equal to about 25% of all Pirelli’s moto production in the world – will carry Pirelli brands (Pirelli or Metzeler). In the context of the group’s ‘local for local’ strategy, 20-25% of the Pirelli brand production made in the Indonesian plant will serve the original equipment and replacement markets of the Asia Pacific area, where the moto market is forecast to grow at an average annual rate of 3.5% from 2011 to 2014. The remaining output will serve all the markets in which Pirelli operates with the exception of South America.

The new facility will allow Pirelli to not only strengthen its moto production capacity – which according to the forecasts of the industrial plan will grow to 16 million pieces in 2015 from 13 million pieces in 2011 – but also to have a direct presence in the Asean area’s biggest economy, which with a circulating pool of 250 million motorcycles is the biggest motorcycle market in the world.  Of this total, 68 million are in Indonesia whose moto market is growing by more than 10% a year. The in-country production capacity will also be free of export duties to Asean markets and reduce the cost of raw material supply thanks to the strong local presence of natural rubber producers.

Pirelli

Founded in 1872, Pirelli is the fifth tyre maker in the world by sales. Present in over 160 countries, at the end of 2011 it counted 21 production facilities on four continents and employed around 34,000 people. Pirelli is a leading producer in the high and ultra-high segments, thanks to its commitment to research and development, an area in which it invests about 3% of total revenues (5.6 billion euro in 2011) or 7% of Premium segment revenues, one of the highest levels in the tyre segment, with the goal of a constant improvement of products in terms of performance, safety and containment of environmental impact. Active in automotive sports since 1907, Pirelli is the exclusive supplier of the Superbike world championship and prestigious mono-brand championships, but above all it is the sole supplier for the Formula 1 championship for the 3-year period 2011-2013.

PT Astra Otoparts Tbk

PT Astra Otoparts Tbk (Astra Otoparts) is Indonesia’s foremost automotive component Company producing components both for Original Equipment (OEM) and Replacement Market (REM). The company counts most major car and motorcycle makers of the world among its clients and has become synonymous with high-quality automotive spare parts. These both satisfy growing local demand and are exported to 49 countries in the Middle East, Asia Oceania, Africa, Europe, and the Americas. The company has established three representative offices in Singapore, Dubai, and Australia. It employs circa 33,000 people and has been listed on the Indonesia Stock Exchange since 1998. Its consolidated revenues in 2011 were 7.36 trillion rupiah (626 million euro).

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Henkel continues is path towards sustainable mobility and announces a new project in collaboration with Pirelli, a high profile sustainable partner committed to the dissemination of the cultre of road safety. Henkel employees, on the occasion of its first ‘Sustainability Day’ at its Milan headquarters, installed a tyre pumping station available to all employees. The Pirelli station represents a new piece of a wider sustainability strategy which Henkel has been pursuing successfully for many years, also directly involving employees in sensitizing initiatives. Even an apparently simply gesture like checking one’s tyre pressure can contribute to ensuring  vehicle and passenger safety on the one hand and increasing motor efficiency, therefore reducing consumption and emissions, on the other.

During the inauguration of the station, Henkel employees also had the possibility of speaking with Pirelli technicians to learn things about correct tyre maintenance like tread depth, damage that can compromise safety, the difference between winter and summer tyres, pressure and methods of inflation.

The initiative was part of Henkel’s first Sustainability Day, conceived to motivate employee engagement with themes of importance to the company such as the consumption of resources, waste management, safety, social progress and the growth in value of company activities.

“We recently announced a new sustainability strategy which will see us committed from now until 2030 to increasing our efficiency by 30%, with short terms targets set for 2015. To achieve these results it is indispensable that everyone be involved, along the entire value chain and in all areas of activity, with a continual monitoring of the milestones reached. With regard to safety, we are implementing a strict policy of eliminating all types of workplace accidents, through continuous training in responsible behaviour. The theme of safe driving is dear to our hearts; our goal is to shine a light on such arguments also as a way of caring for the health of our employees,” said Giacomo Archi, Chairman and CEO of Henkel Italia.

“In Pirelli we live sustainability as a natural way of managing our business and of creating value for all stakeholders”, said Filippo Bettini, the Pirelli Group’s Director for Sustainability and Risk Governance.  “For this reason we developed a plan that fully fits into the business’s growth strategy and which will lead us to become ever more committed to process innovation, with more challenging targets, such as a 70% reduction in the drawing of water by 2015 or the 15% reduction in specific CO2 emissions and energy consumption in the same time frame. And, obviously, a commitment to continuous product innovation, developing tyres that deliver safety, performance and driving comfort in all atmospheric conditions, as well as environmental efficiency. At the heart of Pirelli plan, underlined Bettini, “is the quality of the workplace environment and the quality of the work of our employees, as well as a commitment to transforming the education of road safety in a true culture of safety. Occasions like today constitute a further cultural enrichment and a stimulus for future commitments”.

Contacts:

In line with the 2012-2014 industrial plan presented in London last November, with this operation Pirelli intends to strengthen its leadership in the Brazilian market both in retail and wholesale distribution, focusing on the higher growth Premium segment and increasing the number of Pirelli owned (Pirelli Pneuac) points of sale from the present 48 to 102.

The 54 Campneus points of sale included in the agreement are already part of Pirelli’s distribution network in Brazil, which counts over 600 points of sale in total. The Campneus stores, which will continue under the same brand even after the closing of the operation, are located in the states of São Paulo, Minas Gerais, Paraná, Mato Grosso do Sul, Santa Catarina and Rio Grande do Sul. They sell the complete range of Pirelli tyres for cars, light-trucks, trucks, buses and agricultural machinery, as well as for earth moving and off road equipment.

The agreement is subject to approval by CADE, the Conselho Administrativo de Defesa Econômica brasiliano, and finalization is expected at the end of the first half of 2012.

CAMPNEUS

The first Campneus point of sale was opened in the Brazilian city of Campinas on September 19th, 1975 and the following year extended to three resellers in the sates of São Paulo and Minas Gerais. At present, the company employs around 600 people in seven Brazilian states.

PIRELLI IN BRAZIL

With over 80 years’ commercial presence in Brazil, Pirelli has five tyre production factories in the country: in Gravataí (RS), Campinas (SP), Santo André (SP), Sumaré (SP) and Feira de Santana (BA). The company employs around 9,000 people in its Brazilian plants and has its own testing grounds in Sumaré city for its R & D activities. As well as official Pirelli resellers, the commercial structure in Brazil includes the Pirelli owned Pneuac chain with 48 points of sale in 14 states.

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Social integration against youthful hardships, in areas at risk, support for the educational system, educational training by the instructors: all of this is Inter Campus and now it is also in Mexico. Pirelli supports the Inter Campus projects in various parts of the world by the process of growth and integration of the young generation through sport, creating a link with the social fabric in which the society is present.

The Inter Campus programme has been active since 2004 at Queretaro, a colonial town 200 kilometres north of Mexico City, where the Marcelline sisters continues to offer underprivileged children from the peripheral quarter of Bolanos and the Girasol school the chance to take part in sports activities on the attractive seven pitch of synthetic grass inside their college grounds. The activity is run by coordinator Ernesto Ortega, professor of physical education at the institute, who has organised a theoretical course with eight trainers and a group of about 15 students from the Autonoma University of Sports at Queretaro. The theoretical courses, held every morning, are followed by practical ones in the afternoons on the pitch in which over 100 children participate.

As further development of the activities that have been in operation for years, the visit of an Inter Campus delegation was an opportunity of activating two new centres. Starting from 17 March, the Mexican project was expanded to include new activities that will involve the children. Christian Valeiro of Inter Campus will work directly with the project as he already had experience with other groups in Mexico: after a carefully inspection in Mexico City, he has given his OK to begin.

Another centre has been activated on a small cement pitch within the structure near the Fundaciòn Renacimiento located at Tepito, one of the most underprivileged and dangerous quarters in the Federal District. In line with tradition, the distribution of shirts to 25 children participating in the first training session was carried out and the event was run successfully by Ricardo and Omar, social workers with the same past as the children hosted by the institute, who manage the activity during the course of the year.

Boys and girls from 6 to 14 years-old, who share a difficult existence, come together with football in a cheerful and surprisingly equal game for all the children throughout the world. The ‘callejeros’, children of the street, learn respect for the others by playing and are taught tolerance through the sport.

The event began with a speech by chairman Marco Tronchetti Provera in which he underlined how the premium strategy also consists of being able to rely on equally premium outside sources.

The awards were assigned on the basis of seven criteria: quality, innovation, speed, total cost, sustainability, global presence and service level.

As certified by the German Motorrad TestCenter, which carried out a test for which it bought the Metzeler products and those of its direct competitors.

To guarantee a high level of safety to motorcyclists, Metzeler decided to develop new tread compounds for its Roadtec Z8 Interact tyres with the clear objective of offering them not only the latest technological solutions in the area of wet handling, but also the chance of having a tyre that represents the new point of reference in all weather conditions, from wet and cold to dry.

The values taken into consideration by the Motorrad TestCenter test in the wet were: riding precision and characteristics, maintenance of trajectory under acceleration, ease of riding, grip when cornering, grip of the front and rear tyres in lean angle, grip in acceleration, handling on the limit, response when leaning and braking stability in the complete braking phase with ABS.

The motorcycles selected for the test were a Honda CBR600F ABS and a Suzuki Bandit 1250 ABS. The test took place at the Vizzola Ticino track network last January and February in the dry in slightly cloudy weather.

The Metzeler Roadtec Z8 Interact™ was not only the safest tyre in the wet, but also the fastest over the timed lap. Considering all the values taken into account, the Motorrad TestCenter crowned the Metzeler Roadtec Z8 Interact™ superior to its competitors in its segment.