Pirelli & C. S.p.a. · MIL:PIRC
Pirelli & C — Pirelli & C Spa Azioni — 1H 2025 Earnings Presentation
34 slides from Pirelli & C's earnings presentation, Jul 31, 2025
Slide 1: 1H 2025 Results
1H 2025 Results Milan July 31st, 2025 PIRELLI 1H 2025 RESULTS Thursday, 31 July, 2025
Slide 2: Agenda
Agenda 1 1H 2025 KEY MESSAGES 2 PIRELLI & C. – 1H 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1H 2025 RESULTS 1 Thursday, 31 July, 2025
Slide 3: Key messages
Key messages 1H’25 results: solid execution in a challenging external environment ▪ Sound organic growth: +4.4% YoY supported by our commercial performance ▪ Best-in-class Profitability: internal levers successfully offset FX, raw mat/inflation and tariffs impacts ▪ Solid cash flow generation in 2Q
Slide 4: Agenda
Agenda 1 1H 2025 KEY MESSAGES 2 PIRELLI & C. – 1H 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1H 2025 RESULTS 3 Thursday, 31 July, 2025
Slide 5: 1H 2025 Financial Results confirming a solid execution in a tough environment
1H 2025 Financial Results confirming a solid execution in a tough environment 3,448 3,499 +1.5% YoY STD NET +4.4% organic growth H.V. SALES 77% 80% supported by a solid commercial performance 1H’24 1H’25 539 558 +3.6% YoY ADJ. 16% adj. EBIT margin (+0.4pp yoy) EBIT tariffs mitigation actions already
Slide 6: 1H 2025 Sustainability results in line with the long term plan
1H 2025 Sustainability results in line with the long term plan PEOPLE -3% Accident Frequency Index1 vs FY 24 Driven by a continuous focus on health & safety Scope 3 absolute emissions CLIMATE - 16.5% yoy on track with 2025 target Progressing towards our target NET ZERO by 2040 Scope 1+2 emissions (S
Slide 7: 1H'25 Results: strengthening our Leadership through key strategic programs
1H’25 Results: strengthening our Leadership through key strategic programs Inserire immagine COMMERCIAL PROGRAMS INNOVATION PROGRAMS OPERATIONS PROGRAMS Boosting competitiveness & Market share gain in Car ≥18’’ Enlarging our HV portfolio supply chain resilience Unique homologation portfolio on ≥19’’
Slide 8: Strengthening our leadership in the High Value Market
COMMERCIAL Strengthening our leadership in the High Value Market Gaining share on Car ≥18’’ in both channels, while further reducing the exposure to Standard TOTAL CAR ≥18” 2Q’25 HIGHLIGHTS Market Pirelli 2Q’25 1H’25 2Q’25 1H’25 MARKET ▪ Total: slightly positive demand driven by OE TOTAL 5% 5% (stro
Slide 9: Securing growth through a superior portfolio of homologations
INNOVATION Securing growth through a superior portfolio of homologations Leveraging on best-in-class technology and partnerships with leading Premium & Prestige OEMs ~ #110 NEW HOMOLOGATIONS IN 1H UNIQUE HOMOLOGATION PORTFOLIO ~90% Higher rim sizes (≥19”) ≥19’’ ‘marked’ homologation (Europe) 1H’251
Slide 10: PZERO 5th generation: further rising the benchmark in UHP thanks to virtual design and AI
INNOVATION PZERO 5th generation: further rising the benchmark in UHP thanks to virtual design and AI The Iconic Tyre leading the UHP evolution in the last 40 years, fitting racing and the most prestigious cars NEW PZEROTM GENERATION EVENT Milan HQ & Monza Circuit – May 2025 Leader of homologations A
Slide 11: Two Wheels Product innovation: new Moto products and 4 Cycling in 1H'25
INNOVATION Two Wheels Product innovation: 2 new Moto products and 4 Cycling in 1H’25 Strengthening our positioning on both Moto and Cycling business Road Result of experience in the NERO MTB Result of experience in the Our strengths and positioning • Product performance leadership • Innovation rate
Slide 12: Cyber Tyre: Technology development is speeding up
INNOVATION Cyber Tyre: Technology development is speeding up Renewed partnership agreement with New OE integration projects with Premium and Prestige OEMs already active and others ongoing Infrastructure monitoring agreements concluded with: • Movyon for mapping the motorway sections of ASPI (Autost
Slide 13: Brand power further enhanced by strategic partnerships
Brand power further enhanced by strategic partnerships Amplifying our reach through sponsorships in global competitions Exclusive global tyre partner F1 gaining audience worldwide New 2025 Sole Tyre Supplier from 2027 Highest level of motorbike competition New 2025 Official Tyre Partner Olympic flee
Slide 14: 1H'25 Efficiencies in line with programs development
OPERATIONS 1H’25 Efficiencies in line with programs development Efficiencies achieved ~45% of the annual target; R&D and manufacturing programs expected to drive second half benefits FY 2025 GUI 1H 2025 MAIN PROJECTS Product Cost ~40% of FY Design Modularity (tyre structure, weight and cost optimiza
Slide 15: Focus on Manufacturing Program: transformation leading current and future efficiencies
OPERATIONS Focus on Manufacturing Program: transformation leading current and future efficiencies Leveraging on automation & digitization to improve our manufacturing performance development phase execution phase Smart Manufacturing Energy efficiency CONTROL TOWER CURING ELECTRIFICATION Benefits: re
Slide 16: Enhancing our Supply Chain: more resilient, sustainable and customer-oriented
OPERATIONS Enhancing our Supply Chain: more resilient, sustainable and customer-oriented Leveraging on Integrated approach, local-for-local, digitization and suppliers' engagement MAIN PROJECTS KEY HIGHLIGHTS Building end-to-end integrated business planning from procurement to consumer sales End-to-
Slide 17: 1H 2025 Sales bridge
1H 2025 Sales bridge Mid-single-digit organic growth supported by a solid commercial performance € million +0.5% +3.9% +4.4% -2.9% +1.5% 3,448 3,598 3,499 15 135 (99) STD H.V. 77% 80% 1H’24 Δ Volumes Δ Price/mix Organic Growth Δ Forex 1H’25 1Q’25 +0.8% +3.9% +4.7% -1.0% +3.7% 2Q’25 +0.1% +3.9% +4.0%
Slide 18: 1H 2025 Adjusted EBIT
1H 2025 Adjusted EBIT Profitability improvement driven by internal levers. Tariffs mitigation actions already effective in 2Q € million Net impact +32 Net impact +24 Net impact +8 539 94 (51) 70 (62) 558 6 (19) (15) (4) 1H margin 15.6% 16.0% 1H’24 Volume Price/mix Raw Mat. FX Effic. Inflation D&A Ot
Slide 19: 1H 2025 Net Income
1H 2025 Net Income Earnings growth supported by operating performance and lower financial expenses € million (34) 264 231 53 19 (6) 0 1H’24 Δ adj. EBIT Δ non recurr. / Δ Net Income / Δ Financial Δ Taxes 1H’25 restr. costs loss from equity income / % of sales 6.7% partecipations expenses 7.5% Financi
Slide 20: 1H 2025 Net Financial Position
1H 2025 Net Financial Position Net Cash Flow in line with business seasonality. Däckia divestment (~€43M) partially offsetting FX and tariffs impact € million Net Cash Flow (before dividends): -504 (-519 in 1H’24) Operating Cash Flow: -217 (-279 in 1H’24) 2,679 249 67 103 1,926 117 810 (793) 128 72
Slide 21: Gross Debt structure as of June 30th 2025
Gross Debt structure as of June 30th 2025 Liquidity margin covers 3.5 years of debt maturity protecting the company in current volatile markets. ESG linked financings on track with 2025 targets € million Net Financial Position Gross Debt maturity 3,868 (1,189) Liquidity position 1,245 Loan (931) Bon
Slide 22: Agenda
Agenda 1 1H 2025 KEY MESSAGES 2 PIRELLI & C. – 1H 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1H 2025 RESULTS 21 Thursday, 31 July, 2025
Slide 23: Car Tyre demand in 2025: outlook confirmed
Car Tyre demand in 2025: outlook confirmed Replacement Consumer Demand still holding. Potential impact of GDP slowdown to be monitored Global car tyre market YoY % growth +1% -1% ÷ +1% ≥18" + Mid-single ~+4% digit ≤17" Negative flat low-single digit 2024 A 2025 E OE: flattish demand due to weak car
Slide 24: US Tariffs impact and mitigation plan
US Tariffs impact and mitigation plan The tariff scenario is still being defined: an agreement was reached with the EU, discussions underway with Brazil PIRELLI IN US - KEY FIGURES US TARIFFS MITIGATION PLAN >20% of Group Revenues, mainly High Value May 3rd - July 31st From Aug 1st Georgia high-tech
Slide 25: FY 2025 Targets update: Profitability and Cash confirmed
FY 2025 Targets update: Profitability and Cash confirmed despite higher FX impact, thanks to solid organic growth and tariffs mitigation plan 2024 2025 € billion Act May Guidance July Guidance Volumes: ~ +1% (old +1% ÷ +2%) Net Sales 6.77 ~ 6.8 ÷ 7.0 ~ 6.7 ÷ 6.8 Price/Mix: ~ +3% ÷ +3.5% (old +2% ÷ +
Slide 26: Agenda
Agenda 1 1H 2025 KEY MESSAGES 2 PIRELLI & C. – 1H 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 1H 2025 RESULTS 25 Thursday, 31 July, 2025
Slide 27: Economic results summary
Economic results summary 1H 2025 € million 2Q 2025 2Q 2024 ∆ YoY 1H 2025 1H 2024 ∆ YoY ∆ YoY Budget Net Sales 1,740.0 1,752.0 -0.7% 3,498.6 3,447.5 +1.5% 3,581.6 +3.9% Organic variation +4.0% +4.4% +6.2% 1 adjusted EBITDA 393.9 392.0 +0.5% 792.9 768.3 +3.2% 806.9 +5.0% % of net sales 22.6% 22.4% +0.
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet € million 30/06/2025 31/12/2024 30/06/2024 Fixed assets 8,571.9 8,771.6 8,748.0 Inventories 1,445.5 1,467.7 1,417.7 Trade receivables 896.5 622.9 937.3 Trade payables (1,573.7) (2,081.6) (1,499.1) Operating net working capital 768.3 9.0 855.9 % of net sales* 11.3% 0.1% 12.
Slide 29: Net Cash Flow
Net Cash Flow € million Budget 1H 2Q 2025 2Q 2024 1H 2025 1H 2024 2025 Adjusted Operating income (EBIT) 278.5 276.5 558.3 539.1 568.1 Amortiz. & depreciations (excl. PPA amortiz.) 115.4 115.5 234.6 229.2 238.7 Investments in tangible and intangible assets (Capex) (68.0) (90.2) (128.0) (143.6) (188.8
Slide 30: Sustainability: delivering on Plan targets
Sustainability: delivering on Plan targets* 2023 2024 2025 2030 PEOPLE Accident Frequency Safety first Towards zero accident at work Index1 1.69 1.41 ~1 <1 Engagement & leveraging on employees Global Sustainable 83% 83% ≥80% ≥80% Retention listening and experience engagement Index constantly constan
Slide 31: ESG Indices: a globally acknowledged sustainability leadership
ESG Indices: a globally acknowledged sustainability leadership Update @ 21/07/25 Major rankings Last update Score Positioning in the reference sector Dow Jones Top score Auto Components Sustainability 2024 84 Index and Automotive sector 2025 TOP 1% ESG The only tyre maker in Top1% 2025 A A LIST – Ma
Slide 32: Raw material costs trend and mix
Raw material costs trend and mix Main raw materials price trend yearly avg.; Δ YoY 82.3 ; -17% YoY 79.8 ; -3% YoY 1.378 ; -11% YoY 1.743 ; +27% YoY $ / kg Brent Oil (in $ / barrel) $ / barrel Natural Rubber (in $ / kg) 130 1,95 115 1,70 100 85 1,45 70 1,20 55 40 0,95 2023 2024 2025 25 0,70 10 J F M
Slide 33: Pirelli manufacturing footprint
Pirelli manufacturing footprint U.K. Germany Romania Burton – Semi-finished Breuberg – Slatina – Car Carlisle – Car Car / Moto U.S. Rome – Car Russia Kirov – Car Voronezh – Car China Mexico Yanzhou – Car / Moto Italy Silao – Car Jiaozuo – Car Bollate – Cycling Shenzhou – Car
Slide 34: Disclaimer
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
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