Milan - 12 Feb 2015 17:53 UTC

RESULTS IN LINE WITH TARGETS

FURTHER REINFORCEMENT OF PREMIUM (VOLUMES +17.8%) IN ALL MARKETS; PRICE/MIX AT +4.2%; EFFICIENCIES OF €92 MILLION

CASH GENERATION ABOVE EXPECTATIONS; IN FOURTH QUARTER THE NET FINANCIAL POSITION IMPROVED BY MORE THAN €1 BILLION

CONSOLIDATED RESULTS

• EBIT: +6.8% TO €838 MILLION (€784.7 MILLION IN 2013), IN LINE WITH 2014 TARGET OF APPROX. €840 MILLION

• EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 14.4% (13.4% IN 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT13.9% (12.9% IN 2013)

• REVENUES: €6,018 MILLION, IN LINE WITH THE TARGET OF >€6.0/ < 6.1 BILLION, WITH ORGANIC GROWTH OF 5.9%; -0.7% COMPARED WITH €6,061 MILLION IN 2013 INCLUDING FOREX EFFECT (-6.6%),

• NET FINANCIAL POSITION NEGATIVE APPROX. €980 MILLION;

EXCLUDING STEELCORD DISPOSAL THE FIGURE IS ABOUT €1,170 MILLION BETTER THAN 2014 TARGET OF ~€1,200 MILLION (€1,322.4 MILLION AT END 2013 AND €2,003.9 MILLION ON 30 SEPTEMBER 2014)

TYRE ACTIVITIES

• EBIT: +4.5% TO €853 MILLION (€815.7 MILLION IN 2013)

• EBIT MARGINE BEFORE RESTRUCTURING COSTS AT 14.7% (13.9% IN 2013), EBIT MARGIN AFTER RESTRUCTURING COSTS AT 14.2% (13.5% IN 2013)

• TOTAL VOLUMES +2.0% , CONSUMER VOLUMES +5.0% AND PREMIUM VOLUMES +17.8%, INDUSTRIAL VOLUMES -6.5% DUE TO THE SLOWDOWN OF SOUTH AMERICAN MARKET

• PREMIUM REVENUES: €2,536 MILLION, WITH ORGANIC GROWTH OF 13.2%; +11.5% INCLUDING FOREX EFFECT (-1.7%). PREMIUM EQUAL TO 55% OF CONSUMER REVENUES (+4 PERCENTAGE POINTS COMPARED TO 2013)

• REVENUES: €6,008 MILLION, WITH ORGANIC GROWTH OF 6.2%; – 0.4% COMPARED WITH €6,030.6 MILLION IN 2013 INCLUDING FOREX EFFECT (-6.6%)

• CONSUMER EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 15.1% (13.7% IN 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT 14.7% (13.3% IN 2013)

• INDUSTRIAL EBIT MARGIN BEFORE RESTRUCTURING COSTS AT 13.1% (14.6% AT END 2013); EBIT MARGIN AFTER RESTRUCTURING COSTS AT 12.6% (14.1% AT END 2013). THE INDUSTRIAL ANNUAL PROFITABILITY TREND REFLECTS THE 6.5% FALL IN VOLUMES MAINLY IN EMERGING MARKETS

2015 TARGETS

• CONSOLIDATED EBIT ~930 MILLION EURO AFTER RESTRUCTURING CHARGES OF APPROX. 40 MILLION EURO

• CONSOLIDATED EBIT WILL BE DRIVEN BY:

- THE CONSUMER BUSINESS WITH A MARGIN BEFORE RESTRUCTURING CHARGES EQUAL TO OR ABOVE 16% ON SALES OF APPROX. 4.9 BILLION EURO

- THE INDUSTRIAL BUSINESS WITH A MARGIN BEFORE RESTRUCTURING CHARGES OF APPROX. 12% ON EXPECTED SALES OF APPROX. 1.5 BILLION EURO AFTER THE COMPLETE DECONSOLIDATION OF STEELCORD

• TOTAL REVENUES FORECAST TO GROW BY +6%/+6.5% TO APPROX. 6.4 BILLION EURO DERIVING FROM:

- VOLUME GROWTH EXPECTED AT EQUAL TO OR ABOVE+3%. PREMIUM WILL BE THE DEVELOPMENT DRIVER WITH A RATE OF VOLUME GROWTH EQUAL TO OR ABOVE +10%

- PRICE/MIX GROWTH AT EQUAL TO OR ABOVE +4%

- FOREX IMPACT AT ABOUT -1%

• CASH GENERATION BEFORE DIVIDENDS OVER 300 MILLION EURO

• 2015 TARGETS REFLECT ADJUSTMENT OF VENEZUELAN EXCHANGE RATE TO 20 BOLIVAR PER US DOLLAR

• INVESTMENTS BELOW 400 MILLION EURO

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