The Board of Directors of Pirelli & C. SpA met today and approved the group’s results for the three months which ended on March 31, 2016. It should be noted that Pirelli de Venezuela C.A. was deconsolidated at the end of 2015: the operating results for 2015, for the purposes of comparison, are presented applying the same perimeter of first quarter 2016. The following are the main elements which characterized the quarter:

-       Revenues were 1,436.0 million euro, with organic growth (applying the same perimeter and net of the forex effect of negative 9.3%) of 5.1%, thanks to the significant improvement of the price/mix component (+6.1%) as a result of price increases in emerging markets, greater sales in the Replacement channels and the diverse geographic and product mix. This performance more than offset the slight reduction in volumes (-0.8%, mainly in emerging markets and the Industrial business) and reduction of sales of other activities (-0.2%).

-       Further reinforcement of Premium, with volume growth of 11.7%, above the global premium market trend (+10%) and organic revenue growth of 10.5% to 781.9 million euro. Premium accounted for 67.1% of Consumer revenues, a decided (?) increase from 61.2% in the same period of 2015 (with the same perimeter).

-       Ebitda before non-recurring and restructuring charges was 290 million euro, an increase of 2.5%  compared with 282.9 million euro in the same period of 2015 with the same perimeter, with an Ebitda margin of 20.2%, an increase from 18.9% in the same period of 2015 with the same perimeter;

-       Ebit before non-recurring and restructuring charges was 215.5 million euro, an increase of 4.2% compared with 206.9 million euro in the first quarter of 2015 with the same perimeter, with an Ebit margin increasing to 15% (13.8% in the first quarter of 2015 with the same perimeter). This result benefits from, among other things, the achievement of 30.5 million euro in efficiencies (21.1 million euro in the first quarter of 2015), which is the implementation of the 4-year 2014-2017 plan of 350 million euro;

-       At the geographic level, profitability improved in Europe, Apac and Nafta thanks to significant growth in the Premium segment.

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The result from participations was negative 42.5 million euro mainly attributable to the impact deriving from devaluations and value adjustments of affiliates Fenice S.r.l. and Prelios S.p.a., as well as Rcs.

The total net result was 40.4 million euro (84.6 million euro in the same period of 2015) and reflects, as well as the negative impact of the result of participations, the 30.6 million euro increase in net financial charges, mainly due to the early repayment of the US Private Placement bond loan.

The net cash flow from operations improved, passing from -688.9 million euro in the first quarter of 2015 to – 499.9 million euro in the first quarter of 2016, thanks to the management of working capital.

Investments totaled 74 million euro (85.6 million euro in first quarter 2015), mainly earmarked for increased Premium capacity in Europe, Nafta and China, as well as improvements in mix.

The total net cash flow was negative 704.6 million euro, an improvement compared with -753.3 million euro in the first quarter of 2015, when the entry included a positive impact of 24.4 million euro deriving from a payment trance from the disposal of the steelcord activities.

The net financial position was negative 1,903.7 million euro, compared with 1,946.6 million euro in the same period of 2015 with the same perimeter and 1,199.1 million euro on December 31, 2015.

Employees on March 31, 2016 numbered 35,899 (37,527 in the first quarter of 2015 and 36,753 at the end of December 2015)