MILAN - JULY 29th, 2009

Abstract from Pirelli Group H1-’09 Financial Results

(*) Related to revenues on controlled initiatives

Consolidated Profit and Loss

A + B

Revenuesof which services 94.7 47.7 115.0of which other revenues 21.1 6.1 77.8

EBIT before restructuring costs (2.0) (2.2) 20.3Income from Equity Participations (20.9) (12.5) 17.4EBIT inl. Inc. From Equity Part. Before Restructuring costs, writedowns/revaluations (22.9) (14.7) 37.7Restructuring Costs (11.5) 0.0 (16.2)Real Estate writedowns/revaluations (4.8) 0.0 (0.8)EBIT inl. Inc.From Equity Part. After Restructuring costs, writedowns/revaluations (39.3) (14.7) 20.7Interest Income from Participations 13.7 8.5 13.6EBIT incl. Income from Equity Part. & Interest Income from Part. (25.6) (6.2) 34.3Financial Charges (14.7) (8.3) (20.9)Profit Before taxes (40.3) (14.5) 13.4Income Taxes (2.4) (2.1) (6.4)Net Income before discontinued operations (42.7) (16.6) 7.0Discontinued Operations 0.0 0.0 4.4Net Income (42.7) (16.6) 11.4Minority Interests 0.4 0.8 (2.4)Net Income after minority interests (42.3) (15.8) 9.0

(9.2) (6.2) 51.3

1H’09 1Q’09 1H’08

A

B

1

€/mln

115.8 53.8 192.8

Writedowns and Revaluations

Italy

20.5

1.8(18.7)

Based on independent appraisals, on a like for like basis, market value of real estate participated assets were written down by 2.3%

In Italy the writedowns were -1.7%

In Germany we had writedowns of ca. -2.8% (of which 257 €/mln with a pro quota Pirelli Re economic impact of 28.1 €/mln) and in Poland of -6%

With the application of the announced hold strategy, a large part of the German residential portfolio and the trophy assets in Italy of the Retail and Entertainment funds, have been accounted according to IAS 40 with a revaluation in the Book Value

45.5

(50.3)

(4.8)

Total Pirelli RE

WritedownsRevaluations

Germany &Poland

(6.6)

(31.6)

25.0

Of which Highstreet (28.1)

2

€/mln

Update on Headcount and on Cost savings

Reduction from 2,956 in 2007 to 1,267 as of June. New targets confirmed

29 € mln savings as of 2009 (of which approx. 50% related to headcount). Year end target improved compared to the 50 €mln forecast

Headcountreduction

Cost Savings

2008 A 1H’09 2009 E

1,4731,267

890(*)

220 NPL

1,110

Headcountcost

Otherfixedcosts

Total Savings

June 2009

15 €/mln

14 €mln 29

€/mln

55/60 €/mln

ExpectedSavings12/2009

(*) Not Including possible outsourcing for 160 FTE

3

(€/mln)

Details on Service Platform & on Vehicles /Funds

(*) Includes the result from participated companies, success fees, promote and a capital gain from quota disposals(**) EBIT is referred to operating income results including income from equity participations, before restructuring costs,

writedowns / revaluations, but including interest income from equity participations

4

Consolidated Revenues 47.7 115.0Other Revenues (*) 2.0 0.0 17.6

1.6

Total Revenues 96.7 47.7 132.6 -17.0 Berenice Fee-15.4

EBIT (**) (3.2) (1.3)

Vehicles & funds (19.8) (13.4) 36.2-of which Real Estate (22.8) (16.6) 24.5-of which NPLs 3.0 3.2 11.8

Interests Income from Participations 13.7 8.4 13.6

EBIT(**) (6.0) (4.9) 49.7

TOTAL Pirelli RE (9.2) (6.2) 51.3

Service Platform & Holding

Vehicles & Funds

1H’09 1Q’09 1H’08

1.6

1H’09 1Q’09 1H’08

94.7

(€/mln)

Net of one-off

Economic Results – Italy

Net of one-offConsolidated Revenues 50.1 26.2 59.5

Other Revenues (*) 0.0 0.0 17.016.9

Total Revenues 50.1 26.2 76.5-17.0 Berenice Fee-0.1

EBIT (**) 6.7 4.9

Vehicles & funds (14.6) (10.7) 4.3

Interests Income from Participations 4.3 2.5 5.0

EBIT(**) (10.3) (8.2) 9.3

TOTAL ITALY (3.6) (3.3) 26.2

Service Platform

Vehicles & Funds

1H’09 1Q’09 1H’08

16.9

1H’09 1Q’09 1H’08

(*) Includes the result from participated companies, success fees, promote and a capital gain from quota disposals

5

(**) EBIT is referred to operating income results including income from equity participations, before restructuring costs, writedowns / revaluations, but including interest income from equity participations

(€/mln)

(**)

Consolidated Revenues 28.5 13.5 30.2Other Revenues (*) 0.0 0.0 0.4

Total Revenues 28.5 13.5 30.6

EBIT (**) 2.7 1.4

Vehicles & funds (8.8) (6.1) 2.0

Interests Income from Participations 7.9 3.7 4.1

EBIT(**) (0.9) (2.4) 6.1

TOTAL GERMANY 1.8 (1.0) 3.8

Service Platform

Vehicles & Funds

1H’09 1Q’09 1H’08

(2.3)

1H’09 1Q’09 1H’08

Economic Results – Germany

6

(*) Includes the result from participated companies, success fees, promote and a capital gain from quota disposals(**) EBIT is referred to operating income results including income from equity participations, before restructuring costs,

writedowns / revaluations, but including interest income from equity participations

(€/mln)

(**)

Economic Results – Poland

Consolidated Revenues 3.1 2.1 4.5

Total Revenues 3.1 2.1 4.5

EBIT (**) (0.1) 0.4

Vehicles & funds 0.6 0.2 18.2

Interests Income from Participations 1.1 0.5 0.5

EBIT(**) 1.7 0.7 18.7 (***)

TOTAL POLAND 1.6 1.0 19.2

Service Platform

Vehicles & Funds

1H’09 1Q’09 1H’08

0.6

1H’09 1Q’09 1H’08

(***) Includes result from disposal of one asset

7

(*) Includes the result from participated companies, success fees, promote and a capital gain from quota disposals(**) EBIT is referred to operating income results including income from equity participations, before restructuring costs,

writedowns / revaluations, but including interest income from equity participations

(€/mln)

Economic Results – NPLs

(**)

Consolidated Revenues 8.7 3.6 18.0Other Revenues (*) 2.0 0.0 0.0

Total Revenues 10.7 3.6 18.0

EBIT (**) (2.4) (2.9)

Vehicles & funds 3.0 3.2 11.8

Interests Income from Participations 0.4 1.7 4.1

EBIT(**) 3.4 4.9 15.8

TOTAL NPLs 1.0 2.0 18.2

Service Platform

Vehicles & Funds

1H’09 1Q’09 1H’08

2.3

1H’09 1Q’09 1H’08

8

(*) Includes the result from participated companies, success fees, promote and a capital gain from quota disposals(**) EBIT is referred to operating income results including income from equity participations, before restructuring costs,

writedowns / revaluations, but including interest income from equity participations

(€/mln)

Evolution of Real Estate sales and NPL recoveries

1H’09 1H’08

527.6

351.9

1H’09 1H’08

207.7116.6

527.6

1H’09 1H’08

207.7

54.367.4

527.6

1H’09 1H’08

207.7

235.0

175.8

Margin on sales is approx. 15% as of June 2009

Confirmed 1 €/bln of real estate sales by year end, including the preliminary contracts, offers received and undergoing negotiations

9

€/mln

100% Pro quota 100% Pro quota

REAL ESTATE SALES NPL RECOVERIES

NAV 12/2008

Net Asset Value as of June 2009

10

3.311.4

Real Estate NAV at 100% (€/bn) Real Estate NAV Pro quota (€/bn)

As of June 2009, unrealized capital gain (Market Value – Book Value) is approximately 200 €/mln with Real Estate NAV (Market Value – Bank Debt) of approximately 1.2 €/bln.

3.73.9

3.1

Book ValueBook Value Mkt Value Net Debt NAV

Participated AUM RE

1.1 SHL

2.7

Mkt Value Net Debt NAV 06/2009

0.4 SHL

10.3

1.24.4

0.8

1.2

0.8

Unrealized Capital Gain 0.2

14.713.9

Pirelli Group 1H’09 Key Messages

Pirelli Tyre Results

Pirelli Real Estate Results

Appendix

Pirelli Group Financial Review

Pirelli Eco Technology Results

11

Agenda

Asset allocation by Products / Countries (Market Value)

o/w Real Estate

Real Estate 15.1

NPL 1.7 NPL 1.9

Real Estate 15.4

Poland 1%

Germany 49%Germany 49% Italy 50% Italy 50%

Of which participated 14.7Of which participated 15.0

Market Value June 2009: 16.8 € bln Market Value Dec. 2008: 17.3 € bln

12

o/w Real Estate

Poland 1%

(€/mln)

(€/000)

Jun-09

AUM participated Real Estate – 100%

PRE Quota Passing Rent Passing Yield Vacancy Book Value Market Value Net Financial Position Of which Net Debt

Commercial Core Italy 90,758 5.7% 9.7% 1,592,340 1,722,030 1,132,574 1,098,676Tecla Fondo Uffici 45.0% 40,499 5.6% 8.6% 725,280 725,280 502,923 502,923Fondo Cloe 18.6% 26,959 6.9% 11.2% 390,224 500,800 226,804 226,804Fondo Retail & Entertainm 31.6% 23,300 4.9% 13.1% 476,837 495,950 402,847 368,949

Commercial Yieding Italy 178,676 7.0% 6.2% 2,549,786 2,733,885 1,432,114 1,367,749Fiprs 22.0% 21,249 8.2% 0 259,309 303,300 206,973 193,823Tiglio 1 12.9% 13,978 6.9% 37.8% 201,999 219,300 121,554 121,554Raissa 35.0% 23,917 6.8% 0 351,830 359,810 194,115 164,441Olinda Fondo Shop 11.8% 38,389 6.6% 3.1% 578,870 638,990 293,363 293,363Dolcetto Tre S.r.l. 33.0% 1,426 10.4% 0.0% 13,675 20,180 9,171 9,171Progetto Perugia 100.0% 1,587 4.8% 1.7% 33,138 33,700 -Armilla 2.3% 16,790 7.5% 0.0% 224,970 238,700 133,985 133,985Spazio Industriale Fondo (Portafoglio) 22.1% 42,330 7.2% 1.9% 585,119 608,020 313,127 313,127Fo. Hospitality & Leisure 35.0% 9,012 8.3% 0.0% 108,653 114,620 100,646 79,105Italia Turismo 16.3% 9,998 5.2% 0.0% 192,223 197,265 59,179 59,179TOTAL Italy 269,433 6.5% 6.9% 4,142,126 4,455,915 2,564,688 2,466,426

Commercial Core Germany 118,690 6.2% 0.0% 1,925,333 1,936,809 1,336,148 1,223,491

Mistral 35.0% 9,500 6.3% 0.0% 151,479 161,110 114,542 99,655Highstreet 12.1% 109,190 6.2% 0.0% 1,773,854 1,775,699 1,221,606 1,123,836

Commercial Germany 169,316 7.0% 1.3% 2,414,096 2,421,800 2,639,774 2,499,478

Highstreet 12.1% 162,144 7.1% 1.0% 2,280,869.838 2,286,490 2,524,164 2,398,205Mistral 35.0% 7,172 5.4% 10.8% 133,226.194 135,310 115,609 101,273

Residential Yielding Germany 190,624 6.9% 6.0% 2,768,410 2,833,865 2,615,151 2,262,949DGAG 40.0% 70,429 7.5% 3.6% 934,494.972 979,237 843,268 730,428BIB 40.0% 102,152 6.6% 7.1% 1,557,380.44 1,565,198 1,534,587 1,335,138Small Deal 49.9% 18,044 6.5% 9.1% 276,535.011 289,430 237,296 197,382

TOTAL Germany 478,631 6.7% 4.0% 7,107,839 7,192,474 6,591,073 5,985,918

INCOME PORTFOLIO 748,064 6.6% 5.0% 11,249,965 11,648,389 9,155,761 8,452,344

Residential Small Office House Office ITA 21,056 n.m. n.m. 1,057,852 1,212,107 899,508 745,660

Development ITA 2,401 1,328,085 1,418,230 1,108,793 928,253

Development Germany 8,121 163,753 187,570 138,197 138,197

Development Poland 176 140,785 182,415 122,173 62,567

OTHER PORTFOLIO 31,755 2,690,475 3,000,322 2,268,671 1,874,678

GRAND TOTAL 779,819 13,940,440 14,648,711 11,424,433 10,327,021

13

AUM participated Real Estate – pro-quota(€/000)

Passing Rent pro-quota Passing Yield Vacancy Book Value pro-quota Market Value pro-quota Net Financial Position Of which Net DebtProquota

Commercial Core Italy 30,602 5.6% 9.4% 549,638 576,245 410,169 389,407Tecla Fondo Uffici 18,225 5.6% 8.6% 326,376 326,376 233,452 233,452Fondo Cloe 5,014 6.9% 11.2% 72,582 93,149 42,185 42,185Fondo Retail & Entertainm 7,363 4.9% 13.1% 150,680 156,720 134,532 113,771

Commercial Yieding Italy 35,969 7.0% 4.0% 516,166 548,963 300,978 277,894Fiprs 4,675 8.2% 0 57,048 66,726 55,566 50,408Tiglio 1 1,802 6.9% 37.8% 26,038 28,268 15,959 15,959Raissa 8,371 6.8% 0 123,140 125,934 67,940 57,554Olinda Fondo Shop 4,530 6.6% 0.9% 68,307 75,401 34,681 34,681Dolcetto Tre S.r.l. 471 10.4% 0.0% 4,513 6,659 3,027 3,027Progetto Perugia 1,587 4.8% 1.7% 33,138 33,700Armilla 386 7.5% 0.0% 5,174 5,490 3,028 3,028Spazio Industriale Fondo (Portafoglio) 9,363 7.2% 1.9% 129,428 134,494 69,278 69,278Fo. Hospitality & Leisure 3,154 8.3% 0.0% 38,028 40,117 35,226 27,687Italia Turismo 1,631 5.2% 0.0% 31,352 32,174 16,272 16,272TOTAL Italy 66,571 6.2% 5.5% 1,065,804 1,125,208 711,146 667,301

Commercial Core Germany 16,434 6.2% 0.0% 266,008 269,515 253,886 214,814

Mistral 3,240 6.3% 0.0% 51,666 54,951 39,121 24,762Highstreet 13,194 6.2% 0.0% 214,342 214,565 214,765 190,051

Commercial Germany 21,468 6.5% 1.5% 328,069 329,480 320,878 274,703

Highstreet 19,592 7.1% 1.0% 275,607 276,286 276,688 244,848Mistral 1,875 3.6% 10.8% 52,462 53,194 44,191 29,855

Residential Yielding Germany 78,044 7.0% 6.1% 1,119,503 1,145,958 1,056,785 904,411

DGAG 28,172 7.5% 3.6% 373,798 391,695 337,307 280,284BIB 40,861 6.6% 7.1% 622,952 626,079 613,835 535,524Small Deal 9,012 7.3% 9.1% 122,753 128,184 105,643 88,603TOTAL Germany 115,946 6.8% 5.2% 1,713,579 1,744,953 1,631,549 1,393,928

INCOME PORTFOLIO 182,517 6.6% 5.3% 2,779,383 2,870,161 2,342,695 2,061,229

Residential Small Office House Office ITA 6,857 n.m n.m 356,642 414,423 294,010 242,384

Development ITA 600 428,885 456,670 368,967 297,137

Development Germany 3,592 70,313 81,154 59,106 59,106

Development Poland 60 54,058 69,136 48,968 25,017

OTHER PORTFOLIO 11,109 909,897 1,021,382 771,051 623,644

GRAND TOTAL 193,626 3,689,280 3,891,543 3,113,746 2,684,873

Jun-09

14

Net invested Capital

Italy0.8

Germany0.3

Real EstateInvestment

0.8

Services0.3

InvestmentItaly0.6

InvestmentGermany 0.2

1.2

1.1 1.1

Net Invested Capital of 1.2 € bln, of which:

Approx. 0.8 € bln in Real Estate and for 0.3 € bln in the service platform

Total Net Invested Capital in Italy – NPLs included – is approx. 75% of the total

Market ValueParticipated Real Estate Asset

under Management

Services Ita 0.2

Services Ger 0.1

Total NIC NIC excluding NPL

NPL 0.1

Germany& Poland 7.6 Italy 7.1

€/bln

15

Consolidated Balance Sheet

(*) Capital Increase of 399,3 €/mln gross of closing costs

16

Fixed Assets 583.0 589.1 795.3- of which participations 406.7 405.7 608.5- of which goodwill 137.0 137.8 141.7

Net Working Capital 122.4 133.1 183.1

Net Invested Capital 705.3 722.2 978.4

Net Equity 308.2 707.5 366.4 657.1- of which Group Net Equity 302.3 361.7 650.1

Funds 59.8 66.3 50.8

Net Financial Position 337.3 289.5 270.5- of which shareholders' Loans (491.1) (572.3) (539.2)

Total Sources 705.3 722.2 978.4

NFP excluding shareholders' Loans 828.5 429.2 861.8 809.8NIC excluding shareholders' Loans 1,196.4 1,294.5 1,517.6

Gearing 2.69 0.61 2.35 1.23

1H’09 2009 Post cap. increase

2008 actual 1H’08

€/mln

Consolidated Net Cash Flow

17

€/mln

Ebit before restructuring costs (2.0) 20.3Depreciation 3.6 4.3Change in investments (37.5) 9.3

Change in other fixed assets (0.7) (15.0)

Change in NWC, Funds and other 15.7 (22.7)

Free Chas Flow (20.8) (3.8)

Impact from Facility Mgm disposal 0.0 102.4Restructuring costs ( provisioned in 2008) (23.6) (7.8)Interest Income /expenses and Taxes (3.4) 13.5Cash Flow before dividends (47.8) 104.3Dividend paid 0.0 (85.1)

Net Cash Flow (47.8) 19.2Capital Increase 0.0 0.0Treasury shares purchase/sales 0.0 0.0

Net Cash Flow (47.8) 19.2

1H’081H’09

Financial situation Vehicles and participated Funds

18

100%13.0

Euro / bn3.7

0.50.5

2.7

SPVs DEBT Pro-Quota PRE

Shareholders’Loans

NPL RE Assets

2.685 133248

771

High Street 1,533415

2009 2010 2011 Ahed

MA

TUR

ITY

RE Assets

Ero B o M??

Euro / mln

Banks Debt characteristics:

Average maturities closed to 3.2 years

Average Spread (*): 178 bps (pro-quota PRE 154 bps)

81% hedged against interests rate change

Average leverage (LTV): Real Estate 69% of which Italy 59% and Germany 80%

Pro quota recourse debt approximately 46.5 mln/€

(*) Excluding NPL e subsidies.

(€/mln)

NFP evolution excluding shareholders’ loans

861.8

828.5

(89.2)

16.0

23.6

NFP December

2008

PFN Dicembre 2008Equityinjectionsto vehicles

Layoff

NPL ( 20% sales of C.S

and refinincing.to

Calyon)

NFP June 2009

429.2

NFP June 2009 (Post Cap.

increase) (*)

27.5

Investments

(11.2)

Working Capital & Others

898.4

PFN Mach2009

(*) Capital Increase of 399.3 € mln gross of closing costs

19