Pirelli & C. S.p.a. · MIL:PIRC

Pirelli & C — Pirelli & C Spa Azioni — 9M 2025 Earnings Presentation

33 slides from Pirelli & C's earnings presentation, Nov 6, 2025

  1. Slide 1: 9M 2025 Results

    9M 2025 Results Milan November 6th, 2025 PIRELLI 9M 2025 RESULTS Thursday, 6 November, 2025

  2. Slide 2: Agenda

    Agenda 1 9M 2025 KEY MESSAGES 2 PIRELLI & C. – 9M 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 9M 2025 RESULTS 1 Thursday, 6 November, 2025

  3. Slide 3: Key messages

    Key messages 9M’25 results: delivering solid execution despite external challenges ▪ Sound organic growth: +3.7% YoY driven by the continuous price/mix improvement ▪ Best-in-class Profitability: internal levers successfully offset FX, raw mat/inflation and tariffs impacts ▪ Solid cash flow generatio

  4. Slide 4: Agenda

    Agenda 1 9M 2025 KEY MESSAGES 2 PIRELLI & C. – 9M 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 9M 2025 RESULTS 3 Thursday, 6 November, 2025

  5. Slide 5: 9M 2025 Financial Results: a solid execution in a challenging external environment

    9M 2025 Financial Results: a solid execution in a challenging external environment 5,185 5,195 +0.2% YoY STD NET +3.7% organic growth H.V. SALES 76% 79% supported by the constant p/mix improvement across quarters 9M’24 9M’25 816 835 +2.4% YoY 16.1% adj. EBIT margin (+0.4pp yoy) ADJ. EBIT thanks to t

  6. Slide 6: Sustainability: a strategic lever for innovation, growth & competitiveness

    Sustainability: a strategic lever for innovation, growth & competitiveness Fully supported by the engagement of our people PRODUCT >70% Bio-based & Recycled materials in best PEOPLE product: PZero for JLR launched in July 2025 Safety first: Accident Frequency FSC-certified natural rubber: on track t

  7. Slide 7: 9M 2025 Results: leadership enhanced through key strategic programs

    9M 2025 Results: leadership enhanced through key strategic programs COMMERCIAL PROGRAMS INNOVATION PROGRAMS OPERATIONS PROGRAMS Market share gain in Car ≥18’’ Enlarging our HV portfolio Boosting competitiveness Unique homologation portfolio in ≥19’’ 9M’25: PI +5% vs. +4% Mkt ~ €117M efficiencies (~7

  8. Slide 8: Strengthening our leadership in the High Value Market

    COMMERCIAL Strengthening our leadership in the High Value Market Gaining share in Car ≥18’’ in both channels, while still reducing the exposure to Standard TOTAL CAR ≥18” 3Q’25 HIGHLIGHTS Market Pirelli 3Q’25 9M’25 3Q’25 9M’25 MARKET 5% 4% 5% ▪ Total: low single digit market decline due to a TOTAL 3

  9. Slide 9: A Superior Portfolio of Homologations Secures Future Growth

    INNOVATION A Superior Portfolio of Homologations Secures Future Growth Leveraging on best-in-class technology and partnerships with leading Premium & Prestige OEMs ~ 210 NEW HOMOLOGATIONS IN 9M CONSISTENT GAP VS. PEERS MOST ICONIC MODELS FITTING PIRELLI TYRES Presented in 3Q ~90% Higher rim sizes (≥

  10. Slide 10: Pirelli products recognised as top-notch in the industry

    INNOVATION Pirelli products recognised as top-notch in the industry PZero E (launched in 2023) wins International Compasso D’oro Prize First tyre ever to win one of the world’s most prestigious industrial design awards Awarded for “combining environmental awareness with high performance, safety, eff

  11. Slide 11: Cyber Tyre innovation advancing worldwide

    INNOVATION Cyber Tyre innovation advancing worldwide Winning the 2025 Autotech Breakthrough award Vehicle-to-Everything (V2X) Innovation of the Year “Cyber Tyre is a key technology for the future of smart mobility, which includes autonomous driving, connected vehicles, and the digitization of infras

  12. Slide 12: 9M'25 Efficiencies in line with programs development

    OPERATIONS 9M’25 Efficiencies in line with programs development Efficiencies reached ~78% of the annual target; Manufacturing programs will drive Q4 benefits FY 2025 GUI 9M 2025 MAIN PROJECTS Product Cost ~80% of FY Design Modularity (tyre structure, weight and cost optimization). High-tech automate

  13. Slide 13: 9M 2025 Sales bridge

    9M 2025 Sales bridge Sound organic growth driven by continuous price/mix improvement € million -0.2% +3.9% +3.7% -3.4% -0.1% +0.2% 5,185 5,375 5,195 (11) 202 (174) (7) STD H.V. 76% 79% 9M’24 Δ Volumes Δ Price/mix Organic Growth Δ Forex Δ Perimeter 9M’25 3Q’25 -1.5% +3.9% +2.4% -4.3% -0.4% -2.3% Volu

  14. Slide 14: 9M 2025 Adjusted EBIT

    9M 2025 Adjusted EBIT Strong price/mix contribution and efficiencies support profitability improvement, offsetting external headwinds € million Net impact +55 Net impact +31 Net impact +24 816 141 (57) (53) 117 (93) 835 (4) (21) (10) 9M margin 15.7% 16.1% 9M’24 Volume Price/mix Raw Mat. FX Effic. In

  15. Slide 15: 9M 2025 Net Income

    9M 2025 Net Income Earnings supported by the sound operating performance and lower interest expenses € million (38) 401 371 20 (19) 67 0 9M’24 Δ adj. EBIT Δ non recurr. / Δ Net Income / Δ Financial Δ Taxes 9M’25 restr. costs loss from equity income / % of sales 7.2% partecipations expenses 7.7% Fina

  16. Slide 16: 9M 2025 Net Financial Position

    9M 2025 Net Financial Position Sound cash generation in 3Q Net Cash Flow (before dividends): -363 (-357 in 9M’24) Operating Cash Flow: +43 (+33 in 9M’24) 2,538 250 139 1,926 112 155 821 (1,185) 97 224 NFP FY ’24 EBITDA CapEx Increase in ∆ Work. Interests paid Taxes Paid Other Dividends NFP 9M’25 adj

  17. Slide 17: Gross Debt structure as of September 30th 2025

    Gross Debt structure as of September 30th 2025 Cost of debt at 4.66%, in reduction mainly driven by decreasing rates in the euro area. ESG linked financings on track with 2025 targets € million Net Financial Position Gross Debt maturity 3,800 (1,262) Liquidity position 1,245 Loan (999) Bond 1,498 59

  18. Slide 18: Agenda

    Agenda 1 9M 2025 KEY MESSAGES 2 PIRELLI & C. – 9M 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 9M 2025 RESULTS 17 Thursday, 6 November, 2025

  19. Slide 19: Car Tyre demand in 2025: High Value Resilience confirmed

    Car Tyre demand in 2025: High Value Resilience confirmed Global car tyre market YoY % growth +1% ~ flat ≥18" + Mid-single ~+4% digit ≤17" Negative flat low-single digit 2024 A 2025 E OE: flattish demand due to weak car production in EU & North America REPLACEMENT: flat globally, slightly positive in

  20. Slide 20: US Tariffs impact and mitigation plan

    US Tariffs impact and mitigation plan PIRELLI IN US - KEY FIGURES US TARIFFS MITIGATION PLAN >20% of Group Revenues, mainly High Value May 3rd Review Georgia high-tech plant US IMPORT FLOWS EU 25% 15% - from Aug 1st Operations Import flows and inventory optimization UK 25% 10% - from Jul 1st Confirm

  21. Slide 21: FY 2025 Targets confirmed

    FY 2025 Targets confirmed: a better price/mix is offsetting a softer volume growth 2024 2025 € billion Act July Guidance November Guidance Volumes: ~ +1% Volumes: ~ +0.5% Price/Mix: ~ +3.5% ÷ +4.0% Net Sales 6.77 ~ 6.7 ÷ 6.8 Price/Mix: ~ +3% ÷ +3.5% ~ 6.7 ÷ 6.8 Organic growth: ≥ +4% Organic growth:

  22. Slide 22: Agenda

    Agenda 1 9M 2025 KEY MESSAGES 2 PIRELLI & C. – 9M 2025 RESULTS 3 FY 2025 OUTLOOK AND TARGETS 4 APPENDIX PIRELLI 9M 2025 RESULTS 21 Thursday, 6 November, 2025

  23. Slide 23: Economic results summary

    Economic results summary 9M 2025 € million 3Q 2025 3Q 2024 ∆ YoY 9M 2025 9M 2024 ∆ YoY ∆ YoY Budget Net Sales 1,696.6 1,737.0 -2.3% 5,195.2 5,184.5 +0.2% 5,408.0 +4.3% Organic variation +2.4% +3.7% +6.6% adjusted EBITDA1 392.3 388.7 +0.9% 1,185.2 1,157.0 +2.4% 1,224.5 +5.8% % of net sales 23.1% 22.4

  24. Slide 24: Consolidated Balance Sheet

    Consolidated Balance Sheet € million 30/09/2025 31/12/2024 30/09/2024 Fixed assets 8,572.5 8,771.6 8,664.7 Inventories 1,405.3 1,467.7 1,342.7 Trade receivables 997.3 622.9 1,032.0 Trade payables (1,609.7) (2,081.6) (1,562.8) Operating net working capital 792.9 9.0 811.9 % of net sales* 11.7% 0.1% 1

  25. Slide 25: Net Cash Flow

    Net Cash Flow € million Budget 9M 3Q 2025 3Q 2024 9M 2025 9M 2024 2025 Adjusted Operating income (EBIT) 277.2 276.8 835.5 815.9 865.1 Amortiz. & depreciations (excl. PPA amortiz.) 115.1 111.9 349.7 341.1 359.4 Investments in tangible and intangible assets (Capex) (95.5) (92.1) (223.5) (235.7) (293.9

  26. Slide 26: Net Financial Position Detail

    Net Financial Position Detail € million 30/09/2025 31/12/2024 Current borrowings from banks and other financial institutions 997.9 760.9 - of which lease liabilities 103.7 105.2 Current derivative financial instruments 46.4 3.5 Non-current borrowings from banks and other financial institutions 2,756

  27. Slide 27: Net Income Adjusted detail

    Net Income Adjusted detail € million 3Q 2025 3Q 2024 9M 2025 9M 2024 Net income 136.6 139.8 400.6 371.1 Amortization from PPA 26.4 28.4 83.3 85.3 One off, non-recurring and restructuring expenses and 11.1 7.2 32.9 22.8 non-recurring income Taxes impact (12.9) (10.0) (35.4) (30.8) Net income adjusted

  28. Slide 28: Total Gross Debt Structure

    Total Gross Debt Structure Total gross debt structure at September 30, 2025 € million Within Between Between Between Between Beyond Total 1 year 1 & 2 years 2 & 3 years 3 & 4 years 4 & 5 years 5 years Club Deal EUR 1.6 bln. ESG 2022 5y - 599.2 - - - - 599.2 Club Deal EUR 600 mln. ESG 2024 4.5y - - -

  29. Slide 29: 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

  30. Slide 30: ESG Indices

    ESG Indices: a globally acknowledged sustainability leadership Update @ 06/11/25 Major rankings Last update Score Positioning in the reference sector Dow Jones Top score Auto Components Sustainability 2025 86 Index and Automotive sector as at 06.11.2025 2025 TOP 1% ESG The only tyre maker in Top1% 2

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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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