PIRELLI & C. SPA BOARD APPROVES CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013

PIRELLI & C. SPA BOARD APPROVES CONSOLIDATED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013         MILANO, Italy, March 27, 2014 (GLOBE NEWSWIRE) -- PRESS RELEASE             PIRELLI & C. SPA BOARD APPROVES CONSOLIDATED RESULTS FOR                        THE YEAR ENDED 31 DECEMBER 2013:    *RESULTS IN LINE WITH 2013 TARGETS   *PROFITABILITY 13%, ROI 20%   *2013 REVENUES +8.4% EXCLUDING EXCHANGE RATE IMPACT   *PREMIUM VOLUMES +15.3% IN 2013, BETTER THAN TARGET OF "ABOVE 13%", +27.5%     IN Q4   *ELEVATED NET CASH GENERATION, 232.4 MILLION IN 2013 (TARGET OVER 200     MILLION), IN Q4 NET CASH GENERATION 648.5 MILLION EURO                                 PIRELLI & C. SPA                                   2013 Results    *REVENUE 6,146.2 MILLION EURO (+1.2% COMPARED WITH 6,071.5 MILLION IN     2012), AN INCREASE OF 8.4% EXCLUDING EXCHANGE RATE IMPACT   *PREMIUM REVENUE 2,210.0 MILLION EURO (+6.5% COMPARED WITH 2,075.4 MILLION     IN 2012)   *TOTAL VOUMES +5.7%, PREMIUM VOLUMES +15.3%, INDUSTRIAL VOLUMES +8.7%   *EBIT 791.0 MILLION EURO (IN LINE WITH 792.5 MILLION IN 2012)   *EBIT MARGIN 12.9% (13.1% IN 2012)   *NET PROFIT 306.5 MILLION EURO (391.5 MILLION IN 2012) DISCOUNTS INCOME     FROM EQUITY PARTICIPATION AND NET FINANCIAL CHARGES   *NET FINANCIAL POSITION NEGATIVE 1,322.4 MILLION EURO (1,970.9 MILLION EURO     ON 30 SEPT. 2013 AND 1,205.2 MILLION EURO ON 31 DEC. 2012), ACHIEVES     TARGET OF LEVEL OF BELOW 1.4 BILLION EURO                                 TYRE ACTIVITIES    *REVENUES 6,115.8 MILLION EURO (+1.4% COMPARED WITH 6,031.3 MILLION IN     2012), AN INCREASE OF 8.6% EXCLUDING EXCHANGE RATE EFFECT   *EBIT 822.0 MILLION EURO (820.8 MILLION IN 2012), EBIT MARGIN 13.4% (13.6%     NEL 2012)   *CONSUMER EBIT MARGIN 13.3% (14.5% NEL 2012), INDUSTRIAL EBIT MARGIN 13.8%     (11.1% A YEAR EARLIER)                              Fourth quarter results    *REVENUES 1,490.0 MILLION EURO, IN LINE WITH 1,488.4 MILLION A YEAR     EARLIER, AN INCREASE OF 9.2% WITHOUT EXCHANGE RATE EFFECT   *EBIT 222.2 MILLION EURO (+10.8% COMPARED WITH 200.5 A YEAR EARLIER), EBIT     MARGIN 14.9% (13.5% IN 2012)   *CONSUMER EBIT MARGIN 15% (13.8% IN 2012), INDUSTRIAL EBIT MARGIN 14.7%     (12.6% IN 2012)                                      * * *    *THE BOARD ON JUNE 12 WILL PROPOSE TO SHAREHOLDERS THE DISTRBUTION OF A     DIVIDEND OF 0.32 EURO PER ORDINARY SHARE (0.32 THE PRIOR YEAR) AND 0.39     EURO PER SAVINGS SHARE (0.39 THE PRIOR YEAR), THEREFORE UNCHANGED FROM THE     PREVIOUS YEAR                                       * * *                                   2014 TARGETS    *CONSOLIDATED EBIT CONFIRMED AT AROUND 900 MILLION EURO BEFORE     RESTRUCTURING COSTS   *EBIT MARGIN AT 14.5% FROM PRIOR 13.5% BECAUSE OF IMPROVED PRICE MIX     (+4%/+5% FROM +3%/+4%) AND RAW MATERIAL SCENARIO WHICH OFFSET GREATER     EXPECTED VOLATILITY IN EXCHANGE RATES   *CONSOLIDATED SALES AROUND 6.2 BILLION EURO (FROM 6.6 BILLION) ESSENTIALLY     BECAUSE OF WORSENING EXCHANGE RATE EFFECT -9%/-10% (-2%/-3% INDICATED LAST     NOVEMBER)   *INVESTMENTS CONFIRMED FOR MAXIMUM OF 400 MILLION EURO   *CASH GENERATION CONFIRMED AT ABOVE 250 MILLION EURO AND NET FINANCIAL     POSITION APPROXIMATELY NEGATIVE 1.2 BILLION EURO                                       * * *  Following the coming into  effect from January 1°,  2013 of the new  principle  IAS 19  revised "Employee  Benefits",  the data  relative  to 2012  have  been  restated. In  the  present  document,  comments  of  variation  compared  with  December 31, 2012  are always  refer to  the restated  data, unless  otherwise  indicated.                                       * * *  Milan, 27  March 2014  - The  Board of  Directors of  Pirelli &  C. SpA  today  reviewed and approved results for the year ended December 31st, 2013.  The 2013 operating results of the Pirelli group show revenue growth and stable profitability, regardless  of  exchange  rate  volatility  and  the  difficult  macro-economic context,  which affected  Europe  in particular.  The  positive  performance of  emerging  markets more  than  offset the  weakness  of  mature  markets, with an  increase in revenues  of 4.3% compared  with a reduction  of  sales in Europe (-2.2%) and in the Nafta area (-1.5%). A particularly positive performance was  posted in  South  America (+5.2%)  and Apac  (+14.5%),  while  Russia remained substantially in  line with the previous  year and the  Middle  East Africa area saw a decline of 5% compared with the prior year, impacted by elevated exchange rate volatility.  Notwithstanding the unfavorable exchange rate impact, linked in particular  to  the devaluation of Latin American currencies,  revenues saw growth of 1.2%  to  over 6.1 billion euro,  which adjusted for the  exchange rate effect is  8.4%,  while Ebit  was in  line with  2012 levels  and 2013  targets. In  the  fourth  quarter alone, in  particular, profitability improved  markedly compared  with  both the same  period a year  earlier and  the preceding quarter  thanks to  a  better product mix, as can  be seen in the  strong growth of Premium  volumes.  Tyre Ebit in the last quarter was  222.2 million euro, an increase from  200.5  million euro  a year  earlier and  equal to  14.9% of  sales, up  from  13.5%.  Profitability improved  in both  the  Consumer business,  which saw  a  fourth  quarter Ebit  margin  of 15%  (13.8%  in the  same  period of  2012)  and  the  Industrial business (Ebit margin 14.7% from the prior 12.6%).   Total volumes grew 5.7% in 2013,  thanks to the favorable performance of  both  business segments: +4.6% in  Consumer thanks to  sales' increases in  emerging  markets, where volumes grew by 9.7%, and the good performance of Premium above all in Asia, South America and  Nafta, while in Industrial volumes grew  8.7%,  centred mainly in South America.  The Premium volumes,  in particular,  confirmed a  rate of  growth over  three  times greater  than  that of  the  entire Consumer  segment  and  particularly  favourable dynamics in emerging  countries. Premium volumes  grew by 15.3%  in  2013, with a particularly  positive performance in  the fourth quarter,  which  saw an increase of 27.5%.  The commitment to  Research & Development  activities, fundamentally aimed  at  ensuring the  constant product  innovation  which characterizes  Pirelli,  was  positioned among the highest levels of the sector. In 2013 Pirelli invested  a  total of 199.2 million euro - equal to 3.2% of sales - of which 163.3  million  euro for activities linked to Premium products - equal to 7.4% of revenues  in  the segment.  Pirelli & C. SpA  Consolidated revenues on December 31st, 2013 stood at 6,146.2 million euro, an increase of  1.2% from  6,071.5 million  euro a  year earlier.  Excluding  the  negative 7.2% impact linked  to exchange rates, total  revenues grew 8.4%.  In  the fourth quarter, in particular,  revenues totaled 1,496.3 million euro,  in  line with 1,497.4 million  euro in the  corresponding prior period.  Excluding  exchange rate effects, which  had a negative impact  of 9.1%, revenues in  the  quarter grew 9%.  The gross operating  margin (Ebitda)  before restructuring  costs was  1,105.4  million euro,  in  line with  1,102.9  million euro  in  2012. In  the  fourth  quarter, in particular, the gross operating margin was 292.0 million euro,  an  increase of 2.4% compared with 285.0 million euro in the same period of 2012.  The operating result (Ebit) was 791.0 million euro, in line with 792.5 million in 2012, despite  a negative exchange  rate impact of  62.7 million euro.  The  results were  positively  impacted  by the  contributions  from  volumes  (+98  million euro) and price/mix (+47 million euro), the lower cost of raw material (+136 million euro) and gross  efficiencies (+74 million euro), which  covered  higher production  costs, including  amortizations. The  operating result  was  further impacted by restructuring charges  of 25.5 million euro (39.1  million  euro on  December  31st,  2012)  linked  to  the  ongoing  rationalization  of  structures.  The Ebit margin - expressed as a percentage of sales - in 2013 stood at  12.9%  compared with 13.1% of the prior year. In the fourth quarter, Ebit was 209.3 million euro (+9.1% compared with  191.7  million in the  fourth quarter  of 2012),  with an  Ebit margin  of 14.0%,  an  improvement from 12.8% in the same period of 2012.   On December 31st, 2013, the income from equity participation was negative 78.3 million euro  (-52.2  million  in  the  same  period  of  2012)  mainly  as  a  consequence of:    *44.3 million relative to the fair value adjustment of the Prelios     convertendo financial instrument;   *12.8 million due to the equity consolidation method of the Prelios     affiliate;   *21.2 million relative to RCS Mediagroup (-4.9 million) which following the     dissolution of the shareholder pact was reclassified from affiliate to a     financial asset available for sale; Mediobanca (-10.4 million), Fin.Priv     (-1.3 million) and Alitalia (-4.9 million)  The total consolidated net profit was 306.5 million euro, a decrease of  21.7%  from 391.5 million in 2012. The total  was impacted by the income from  equity  participation and the increase of  approximately 45 million euro in  financial  charges (which amounted to 195.8 million  euro) as a result of higher  average  level of  debt above  all in  the first  six months  of 2013  and the  diverse  geographic mix of financings,  the negative 8.3  million euro effect  deriving  from the devaluation of  the Venezuelan currency on  the local operations.  In  2012 there was a benefit from  financial gains deriving from the financing  to  Prelios S.p.A. of about 13 million euro and one-time income on exchange  rates  of 8.7 million euro linked to the launch of the activities in Russia. In the fourth quarter of 2013 net profit was 48.4 million euro, a decrease  of  45.1% from 88.2 million euro in the fourth quarter of 2012 essentially due  to  the Prelios impact (55.4 million euro).  Pirelli & C. Spa  attributable consolidated net profit  on December 31,  2013  amounted to 303.6 million  euro compared with 387.1  million euro in the  same  period of 2012. Mainly following the impact of Prelios (-57.1 million euro).  Consolidated assets  on  December  31,  2013 stood  at  2,436.6  million  euro  compared with 2,389.4  million euro  on December 31,  2012. Pirelli  & C.  SpA  attributable consolidated net assets amount  to 2,376.1 million euro  compared  with 2,337.4 million euro on December 31, 2012.  The consolidated net financial position was negative 1.322,4 million euro,  in  line with  the target  of  below 1.4  billion  euro announced  last  November,  compared with 1,970.9 million  euro on 30 September  2013 and 1,205.2  million  euro on December  31, 2012.  The variation  from December  31, 2012  reflects,  among other things, the dividend payment to shareholders in the second quarter of approximately 159.8  million euro, material  and immaterial investments  of  413.1 million euro, the conversion of a financial credit in favour of  Prelios  into shares and equity  instruments following the closing  of the real  estate  company's debt restructuring process and capital increase, with a total impact on the  net financial  position of  193 million  euro, including  the  capital  increase carried out through the company Fenice Srl of about 23 million.   The total net cash flow, before the effects of the financial reorganization of Prelios and the parent  group's dividend payment,  was positive 232.4  million  euro (-335.8 million in  2012), in line  with the target  of over 200  million  euro.  The net  cash flow  from operations'  management in  2013 was  positive  720.1  million euro, a marked improvement from the 281.1 million of the corresponding 2012 period, essentially due to the better management of working capital above all in the second quarter.  The Group headcount was 37,979 on December 31st, 2013 compared with 37,338  at  the end of 2012.  The parent group Pirelli & C. SpA closed the year with a net profit of  191.9  million euro (234.4 million euro in 2012) after receiving dividends from  unit  Pirelli Tyre S.p.A. of 310  million euro and the  adjustment of the values  of  activities which had a negative impact of 126.7 million euro.  The Board will propose to shareholders the distribution of a dividend of  0.32  euro per ordinary share (0.32 the prior year) and 0.39 euro per savings  share  (0.39 the prior year), therefore unchanged from the previous year, equal to  a  total dividend payout of 156.7 million euro.  Tyre Activities  Sales on December 31, 2013 totaled  6,115.8 million euro, an increase of  1.4%  from 6,031.3 million euro in the  corresponding period of 2012. Excluding  the  exchange rate  effect (negative  7.2%) revenues  grew 8.6%.  This  performance  reflects volume  growth (+5.7%),  particularly  relevant in  emerging  markets  (+10.2%) which  represented 55.7%  of  tyre sales  during  the year,  and  the  component price/mix  (+2.9%). In  the fourth  quarter, revenues  were  1,490.0  million euro, substantially unchanged (+0.1%) compared with 1,488.4 million in the same period of  2012. Excluding the exchange  rate effect, negative  9.1%,  revenues increased by 9.2%. With regard to the Premium segment, revenues on December 31, 2013 amounted  to  2,210.0 million  euro,  an increase  of  6.5%  compared with  2,075.4  in  the  corresponding period of 2012.  The operating result (Ebit)  on December 31, 2013  was 822.0 million euro,  an  increase of 1.2 million euro (+0.1%)  compared with 820.8 million euro in  the  same period a year earlier, with a margin equal to 13.4% (13.6% in 2012).  The  operating result reflects:    *The positive impact of the volume component (97.7 million euro);   *The price/mix contribution (47.3 million euro);   *Gross efficiencies before slowdown impacts of 74.0 million euro;   *Raw material costs 136.2 million euro lower;  which compensated for:    *The increase in the cost of production factors of 138.5 million euro;   *The increase of all other operating costs and amortizations of 168.4     million euro, mainly stemming from: 25.5 million for the transformation of     the Settimo Torinese truck site into a new plant for the production of     Premium Car tyres and start-up costs for the plants in Mexico and Russia;     34.2 million for greater amortizations; 30.3 million for greater     commercial costs linked to the development of Premium;   *The negative exchange rate impact of 62.7 million euro.  In the fourth quarter the operating  result (Ebit) was 222.2 million euro,  an  increase of 10.8% compared with 200.5 million euro in the corresponding period a year  earlier, with  an  Ebit margin  growing to  14.9%  from 13.5%  a  year  earlier.    *In the Consumer business (Car/Light Truck and Moto tyres), sales totaled     4,478.9 million euro, an increase of 1.3% compared with 4,419.8 million     euro in the corresponding period of 2012. Excluding the exchange rate     effect, which had a negative impact of 6.5%, revenues in 2013 grew 7.8%.     In total, volumes rose 4.6%, with the fourth quarter registering an     increase of 6.9%.      Premium is confirmed as the driver of growth, with an increase in volumes     (+15.3% in 2013) more than three times more that of the entire Consumer     segment and characterized by diverse regional dynamics. Growth continues     to be strong in emerging markets (volumes +33%; revenues +22%), in     particular in Asia (revenues +29%) and South America (revenues +25%),     while in Russia and in the Nafta area revenue growth was more contained     with 2% and 3% respectively.      Europe saw revenue growth of 1.7% and volumes up 10.9%, thanks to the     improvement clocked in the last quarter of 2013. The overall performance     in Europe discounted the consumer crisis linked to the macro-economic     performance, a partial adjustment of prices to the actual raw material     scenario and a diverse mix of sales' channels, with greater weight in     original equipment which is an investment for the future development of     the replacement channel.      In the fourth quarter of 2013 revenues grew by 2.6% to 1,100.3 million     euro (1,072.9 million euro in the same period of 2012). Excluding the     exchange rate effect, which had a negative impact of 9.4%, revenues grew     12%. In the fourth quarter of 2013, Premium volumes grew 27.5%, after     growing 19.1% in the third quarter of 2013 and 11.1% compared with the     fourth quarter of 2012.      The operating result (Ebit) on December 31, 2013 was 596.4 million euro,     with a margin of 13.3%, compared with 642.7 million euro in the same     period of 2012 (14.5% of sales). In the fourth quarter Ebit was 165.0     million euro, compared with 148.0 million in the same period of 2012, with     an Ebit margin of 15% (13.8% in the same period of 2012).    *In the Industrial Business (Industrial Vehicles and Steelcord) sales were     1,636.9 million euro, an increase of 1.6% compared with December 31, 2012     (1,611.5 million euro). Excluding the exchange rate effect, negative 9.2%,     revenues grew 10.8%. In the fourth quarter revenues were 389.7 million     euro, a decline of 6.2% from 415.5 million euro in the corresponding 2012     period, but 2.2% higher with the exclusion of the exchange rate effect     which had a negative impact of 8.4%.      The volume component was particularly positive, which grew 8.7% over the     course of 2013 (-6.5% in the same period of 2012), essentially due to the     good performance of South America. The price/mix component registered     growth of 2.1% in 2013 and 2.5% in the fourth quarter.      The operating result (Ebit) reached 225.6 million euro, equal to 13.8% of     sales compared with 178.1 million euro registered on December 31, 2012     (11.1% of sales). In the fourth quarter Ebit was 57.2 million euro, with a     profitability of 14.7% compared with 52.5 million euro in the same period     of 2012 (12.6%). The result for the period benefitted from the growth of     activity in the reference markets, especially South America, where Pirelli     increased its market share, and Middle East Africa, and the exclusive     location of Truck production capacity in countries characterized by     competitive cost bases.  Investments in Research  & Development  delivered significant  results in  all  business segments:    *The launch in the car business of 10 new product lines, of the 20 foreseen     for the period 2011-2015, in line with the plans announced;   *In Truck the evolution of the Winter, Regional and Offroad products of the     :01 range was successfully completed;   *In Moto the new Enduro and Sport Touring products obtained the maximum     recognition in 2013 tests;   *The first generation of the Cyber Tyre (technology which enables the     real-time monitoring of a tyre's parameters thus reducing fuel costs and     optimizing efficiency in tyre maintenance operations) was brought to     market beginning from 2012 and the second will be launched by 2015.  Over the course of 2013, the traditional activities focused on the development of new high-end Premium products (UHP,  winter, runflat, SUV and moto  tyres),  were accompanied  by  a  growing  strategic  attention  to  the  reduction  of  environmental impact, through a "Green  Performance" strategy which calls  for  360°  eco-innovation  and   in  technology,   exploiting  the   technological  components  and  most  advanced  know-how,  resulting  from  intense  research  activity in  the areas  of  materials, modeling,  profiles, tread  design  and  production processes.                                      * * *  Sustainability Report The Board also approved the Sustainability Report, which is part of the Annual Report.  The  Sustainability  Report  is  prepared  in  accordance  with   the  Sustainability Reporting Guidelines  of the Global  Reporting Initiative -  in  particular the Comprehensive version of the GRI-G4 version - and is  inspired  by the principles of inclusivity, materiality and compliance with the  AA1000  Standard.  The  contents  of  the  report  are  centred  on  the  concept   of  materiality, and as such  include the themes which  are most relevant for  the  Company and of greatest interest to the Group's Stakeholders, highlighting  in  2013 that which was illustrated in 2012, with visibility on the performance of the last three years and the new 2014 and/or multi-year targets. In 2013, the  commitment to creating  value allowed Pirelli  to reconfirm  its  place on some the world's most prestigious sustainability stock market indices at the world level.  Among them, the Dow  Jones Sustainability Indices,  which  for the seventh consecutive  year recognized Pirelli's  leadership in the  ATX  Auto Components sector, the  FTSE4Good indices of  the London Stock  Exchange,  which gave Pirelli a rating of 100/100, the Carbon Disclosure Leadership Index (CDLI), which gives Pirelli  a rating of  96, the highest in  the world for  a  tyre maker, the Global Compact 100 index,  in which Pirelli was the only  tyre  maker among the 100 companies that compose the index at the global level,  and  the analysis  of Oekom  Research AG,  which classifies  Pirelli as  the  world  leader among automotive sector suppliers.  Significant events after December 31, 2013  On January 16, 2014, following the  decision of the World Motor Sport  Council  which confirmed  Pirelli  as the  sole  tyre for  the  Formula One  FIA  World  Championship, Pirelli announced  that it  renewed the contract  with FIA.  The  duration of the  agreement is  three years,  beginning from  the 2014  season.  Pirelli will continue to determine  the tyres' specifications and manage  all  aspects of their development, in close cooperation with FIA and the teams, and within the parameters established  in Formula One  FIA Sporting and  Technical  Regulations.  On February 28, 2014 Pirelli & C. S.p.A. and Bekaert announced the signing  of  an agreement for the sale of 100% of Pirelli's steelcord activities to Bekaert for a total value  (enterprise value) of approximately  255 million euro.  The  sale of  its steelcord  activities  will allow  Pirelli  to exit  an  activity  lacking competitive scale and to focus on Premium tyres where the margins  are  higher, As a part of  the agreement, a supply  agreement was also defined  for  the long-term  supply  and joint  development  of  products with  the  aim  of  enhancing R & D activities and ensure that the passage to the new  arrangement  will be in line  with respective growth plans.  The closing of the  operation,  subject to regulatory approval, is expected in the second half of the year and includes all five of Pirelli's  steelcord factories located in Italy,  Turkey,  Romania, China and Brazil. The economic  and financial impact of the sale  was  not factored into the  estimates contained in  Pirelli's industrial plan  last  November.  On February 28, 2014 Pirelli  & C. S.p.a. announced  that it had closed  with  effect from December  31, 2013 its  medium-long term cash  incentive plan  for  management - Long Term  Incentive (LTI) -  adopted in 2012  in support of  the  targets for  the  three  year  period  2012-2014  without  payment,  not  even  pro-quota, of the  three year  incentive. The  Company announced  that it  had  adopted a new  plan -  always for all  management (about  330 participants)  -  linked to the  targets for the  period 2014/2016 contained  in the  industrial  plan presented on November 6, 2013. The three year LTI plan, in line with  the  mechanisms of variable  compensation adopted at  the international level,  and  also based on the performance of Pirelli shares (so-called TSR) and allows for the alignment of the management's  interests with those of shareholders.  Also  the 2014/2016 plan, as in the past, is completely self-financing, in that  the  relative charges are included in the economic data of the industrial plan. The participants of the 2014/2016 LTI Plan include, among others, the Chairman and CEO of  Pirelli &  C. Marco  Tronchetti Provera,  the Vice  President  Alberto  Pirelli (in his  role as senior  manager), the COO  Gregorio Borgo,  directors  with strategic  responsibility Maurizio  Boiocchi (Chief  Technical  Officer),  Maurizio Sala (Chief Planning and Controlling Officer), Francesco Tanzi (Chief Financial Officer and Director indicated for the preparation of the  company's  financial  and  accounting  documents)  and  Christian  Vasino  (Chief   Human  Resources Officer).                                      * * *  Outlook for 2014  In light of the performance in the last quarter of 2013 and in the first months of 2014, Pirelli confirms the 2014 targets indicated last November in terms of:    *Ebit at 900 million euro before restructuring costs of 50 million euro   *investments below 400 million euro   *cash generation before dividends above 250 million euro   *net financial position negative at around 1.2 billion euro  In terms of profitability of operations, the margin before restructuring costs is raised from the prior 13.5% to approximately 14.5% as a consequence of:    *an improvement in the price/mix contribution to +4%/+5% (previously     +3%/+4%) with a positive impact on the operating result of about 15     million euro.   *lower raw material costs compared with previous estimates (-75 million     euro compared with -120 million euro previously);   *greater exchange rate volatility, the expected impact of which is seen at     between -9% and -10% (previously between -2% and -3%) with a total     negative impact on the operating result of -110 million euro compared with     the previous -50 million euro;  Consolidated sales, reflecting the more cautious exchange rate outlook described above, are expected at around 6.2 billion euro compared with the previous target of approximately 6.6 billion euro.  In organic terms, that is excluding exchange rate effects, growth is expected at >+9%/+10% compared with the previous estimate of >+8%/+9% in the following context:    *volumes above +5% (in line with previous targets) but with a greater     contribution from Premium component (growth above +14% compared with prior     target of about +12%). The volume growth estimates in Consumer and     Industrial remain unchanged, respectively >+6 and between +4% and +4.5%);   *price/mix improving to +4%/+5% (previous targets +3%/+4%) as already     noted.  Variations to the calendar of Company events and dividend payments  Pirelli announces that  the Shareholders' Meeting  of Pirelli &  C. will  take  place on Thursday,  June 12th  2014, in  Milan and in  a single  call, and  no  longer on Friday, May 9th as previously announced. The change was needed so as to consider the general agreements announced to the market and to the  company  concerning the  current major  shareholder  Camfin SpA  and allowing  for  the  presentation of slates that are  consistent with the expected new  shareholder  structure of Pirelli &  C. SpA in  view of the  expected renewal through  list  vote of the Board of Directors, which  is lapsing as it concludes its  mandate  with  the  Shareholders'   Meeting  called  to   approve  2013  results,   The  Shareholders' Meeting will also be called upon to resolve on the nomination of the  Board  of  Directors,  its  duration,  number  of  members  and  relative  compensation. Pirelli also  announces,  in  accordance  with Borsa  Italiana  SpA,  for  the  purposes of proceeding with the payment of the dividend proposed today by  the  Board in the shortest  time possible following  approval by Shareholders,  the  date of payment set for June 19, 2014, the coupon detachment date is June  16,  2014 and the record date in June 18, 2014.  It will also  be proposed  to shareholders  to authorize  the acquisition  and  disposition of its  own shares  for a period  of 18  months and up  to 10%  of  capital, which is a renewal of  an analogous authorization decided on May  13,  2013 and lapsing on November 13, 2014. In this regard, it should be noted that as of today no shares have been bought in execution of said authorization. In conclusion, Shareholders will  be called upon  to express via  consultative  vote on Policies relating  to matters of compensation  as well as, as  already  announced to the market, to approve,  in the part linked to Total  Shareholder  Return, the adoption of a three  year incentive plan 2014-2017 LTI (Long  Term  Incentive) for the Company's  management - correlated to  the targets for  the  period 2013/2016 contained in the 2013-2017 Industrial Plan - as announced  to  the market on November 13, 2014.  The relative informational document will  be  made available to the public in accordance with the law.  Board authorizes issue of bonds to a maximum of 1 billion euro  With the aim of quickly taking  advantage of the best financing  opportunities  in support of  the business's continuing  growth, drawing on  the Euro  Medium  Term Note Programme adopted  in November 2012, the  Board has authorized  with  date from May  1, 2014, the  issue of  non-convertible bonds up  to a  maximum  nominal value of 1 billion euro  (or equivalent amount in other currencies)  -  with the option of re-acquisition and/or  exchange also with, and of,  already  issued bonds -  to be  placed by  April 2015,  also in  multiple tranches,  on  international markets.  An analogous  authorization  decided on  November  12,  2012, expired at the end of 2013.                                       * * *  Conference call The resutls for the  year ended December 31,  2013 will be illustrated  today,  Thursday March  27,  2014  at  6.30  pm during  a  conference  call  with  the  participation of the Chairman  and CEO of Pirelli  & C. SpA, Marco  Tronchetti  Provera, and  the top  management.  Journalists will  be  able to  follow  the  presentation by telephone,  without the  possibility of  asking questions,  by  dialing either +39.02.3859.1420 or 800.145.655. The presentation will also  be  webcast - in real time - at www.pirelli.com in the Investors section where the slides will also be available.                                      * * *                                            The executive indicated for the preparation of the accounting documents of Pirelli & C. S.p.A. Mr. Francesco Tanzi, declares in accordance with section 2  of article 154 bisof the Financial Law (Testo Unico della Finanza) that the  accounting information contained in the present communication corresponds to                  the documentary results, books and accounts.                                      * * *      Pirelli Press Office - Tel. +39 02 64424270 - pressoffice@pirelli.com       Investor Relations Pirelli - Tel. +39 02 64422949 - ir@pirelli.com                                www.pirelli.com  Attached are prospectuses related  to the profit and  loss account, to  equity  data in summary and to consolidated financial reports. The company notes that these attachments are not subject to review by the auditing company  Group - Pirelli & C. Spa (in millions of euro)                                              12/31/2013  12/31/2012 12/31/2012                                                          restated   reported Net sales                                   6.146,2     6.071,5    6.071,5 Gross operating profit before restructuring 1.105,4     1.102,9    1.091,2 expenses % of net sales                              18,0%       18,2%      18,0% Operating income before restructuring       816,5       831,6      819,9 expenses % of net sales                              13,3%       13,7%      13,5% Restructuring expenses                      (25,5)      (39,1)     (39,1) Operating income                            791,0       792,5      780,8 % of net sales                              12,9%       13,1%      12,9% Net income (loss) from equity investments   (78,3)      (52,2)     (52,2) Financial income/(expenses)                 (195,8)     (150,5)    (129,5) Pre-tax income (loss)                       516,9       589,8      599,1 Income tax                                  (210,4)     (198,3)    (200,9) Tax rate %                                  40,7%       33,6%      33,5% Total net income (loss)                     306,5       391,5      398,2                                                                  Net income attributable to owners of        303,6       387,1      393,8 Pirelli & C. S.p.A. Total net earnings per share attributable  0,622       0,793      0,807 to owners of Pirelli & C. S.p.A. (in euro)                                                                  Non-current assets                          4.043,0     3.877,2    3.877,2 Inventories                                 987,3       1.102,6    1.102,6 Trade receivables                           666,4       704,6      704,6 Trade payables                              (1.244,5)   (1.268,7)  (1.268,7) Operating Net working capital               409,2       538,5      538,5 % of net sales  (°)                        6,7%        8,9%       8,9% Other receivables/other payables            3,0         11,0       11,0 Total net working capital                   412,2       549,5      549,5 % of net sales  (°)                        6,7%        9,1%       9,1% Net invested capital                        4.455,2     4.426,7    4.426,7 Equity                                      2.436,6     2.389,4    2.389,4 Provisions                                  696,2       832,1      832,1 Net financial (liquidity)/debt position     1.322,4     1.205,2    1.205,2                                                                  Equity attributable to the owners of        2.376,1     2.337,4    2.337,4 Pirelli & C. S.p.A. Equity per share attributable to the owners 4,869       4,790      4,790 of Pirelli & C. S.p.A. (in euro)                                                                  Total Tyre - net sales                      6.115,8     6.031,3    6.031,3 % of net sales total                        99,5%       99,3%      99,3% Total Tyre - operating income               822,0       820,8      809,1 % on total tyre - net sales                 13,4%       13,6%      13,4% Total Tyre - net sales Consumer             4.478,9     4.419,8    4.419,8 % on total tyre - net sales                 73,2%       73,3%      73,3% Total Tyre - net sales Industrial           1.636,9     1.611,5    1.611,5 % on total tyre - net sales                 26,8%       26,7%      26,7% Total Tyre - net sales Premium              2.210,0     2.075,9    2.075,9 % on net s ales Consumer                    49,3%       47,0%      47,0%                                                                  Capital expenditure                         413,1       470,9      470,9                                                                  Research and development expenses           199,2       178,9      178,9 % of net sales                              3,2%        2,9%       2,9% Research and development expenses - Premium 163,3       141,9      141,9 % on sales Premium                          7,4%        6,8%       6,8%                                                                  Headcount (number at end of period)         37.979      37.338     37.338 Industrial sites (number)                   23          23         23  Data by Business Sector (in millions of euro)                              Total Tyre       Other business  Total                             2013    2012     2013   2012     2013    2012                                      restated        restated         restated Net sales                    6.115,8 6.031,3  30,4   40,2     6.146,2 6.071,5 Gross operating profit before restructuring         1.130,3 1.126,5  (24,9) (23,6)   1.105,4 1.102,9 expenses Operating income before      845,4   859,9    (28,9) (28,3)   816,5   831,6 restructuring expenses Restructuring expenses       (23,4)  (39,1)   (2,1)  -        (25,5)  (39,1) Operating income             822,0   820,8    (31,0) (28,3)   791,0   792,5 % of net sales               13,4%   13,6%                  12,9%   13,1% Net income (loss) from                                    (78,3)  (52,2) equity investments Financial income/(expenses)                               (195,8) (150,5) Pre-tax income (loss)                                     516,9   589,8 Income tax                                                 (210,5) (198,3) Tax rate %                                                40,7%   33,6% Total net income (loss)                                    306,5   391,5                                                                  Net financial                                             1.322,4 1.205,2 (liquidity)/debt position  Data by quarter (in millions of euro)                   1° Q            2° Q            3° Q            4° Q            TOTAL                  2013    2012    2013    2012    2013    2012    2013    2012    2013    2012 Net sales        1.536,3 1.556,5 1.594,8 1.465,3 1.518,8 1.552,3 1.496,3 1.497,4 6.146,2 6.071,5              yoy -1,3%   11,1%   8,8%    5,5%    -2,2%   5,3%    -0,1%   5,3%    1,2%    7,5% Gross operating profit before    255,3   279,1   278,2   271,2   279,9   267,6   292,0   285,0   1.105,4 1.102,9 restructuring expenses % of net         16,6%   17,9%   17,4%   18,5%   18,4%   17,2%   19,5%   19,0%   18,0%   18,2% sales Operating income before    183,0   214,7   205,1   205,1   208,8   199,2   219,6   212,6   816,5   831,6 restructuring expenses % of net         11,9%   13,8%   12,9%   14,0%   13,7%   12,8%   14,7%   14,2%   13,3%   13,7% sales Operating        179,8   212,7   200,9   192,6   201,0   195,5   209,3   191,7   791,0   792,5 income % of net         11,7%   13,7%   12,6%   13,1%   13,2%   12,6%   14,0%   12,8%   12,9%   13,1% sales Pre-tax          114,6   188,9   137,1   155,9   158,5   126,3   106,7   118,7   516,9   589,8 income (loss) Total net        72,1    123,6   78,0    94,9    108,0   84,8    48,4    88,2    306,5   391,5 income (loss)  Cashflow statement (in millions of euro)                            Q1              Q2              Q3              Q4              TOTAL                            2013    2012    2013    2012    2013    2012    2013    2012    2013    2012 Operating income (EBIT) before restructuring       183,0   214,7   205,1   205,1   208,8   199,2   219,6   212,5   816,5   831,6 expenses Amortisation and           72,3    64,4    73,1    66,1    71,1    68,4    72,4    72,4    288,9   271,3 depreciation Capital expenditures of property, plant and equipment and              (79,7)  (80,1)  (84,3)  (114,8) (74,3)  (132,5) (174,8) (143,5) (413,1) (470,9)  intangible assets Change in working          (492,4) (511,1) (5,6)   (237,3) (160,3) (197,2) 686,1   594,7   27,8    (350,9) capital/other Operating cash flow        (316,8) (312,1) 188,3   (80,9)  45,3    (62,1)  803,3   736,2   720,1   281,1 Ordinary financial         (58,6)  (24,3)  (46,1)  (33,5)  (43,9)  (45,5)  (47,2)  (47,2)  (195,8) (150,5) income/(expenses) Ordinary tax charges       (42,5)  (65,3)  (59,1)  (61,0)  (50,5)  (41,5)  (58,3)  (30,5)  (210,4) (198,3) Net operating cash flow    (417,9) (401,7) 83,1    (175,4) (49,1)  (149,1) 697,8   658,4   313,9   (67,7) Financial                  -       3,2     -       -       (31,6)  2,3     (7,5)   -       (39,1)  5,5 investments/disinvestments Real estate disposals      -       -       -       -       26,5    -       -       20,5    26,5    20,5 Russia Investment          -       (154,5) -       -       -       (16,4)  -       -       -       (170,9) Impact of consolidating of        -       -       -       -       -       (39,5)  -       (39,5)  - Sino Italiana Wire Retail Investment          -       -       -       (106,2) (4,1)   -       (7,9)   (0,0)   (12,0)  (106,2) Other dividends paid       -       (2,2)   (3,1)   (0,7)   -       -       -       -       (3,1)   (2,9) Cash Out for restructuring (7,5)   (4,2)   (5,2)   (3,3)   (4,2)   (3,6)   (5,7)   (12,4)  (22,6)  (23,5) operations Foreign exchange           (49,6)  (8,5)   29,5    20,2    17,1    0,7     11,3    (3,0)   8,3     9,4 differences/other Net cash flow before       (475,0) (567,9) 104,3   (265,4) (45,4)  (166,1) 648,5   663,5   232,4   (335,8) divid. paid/Prelios Dividend paid by Parent    -       -       (156,7) (132,3) -       -       -       -       (156,7) (132,3) Receivable conversion/Prelios share   -       -       -       -       (192,9) -       -       -       (192,9) - capital increase Net cash flow              (475,0) (567,9) (52,4)  (397,7) (238,3) (166,1) 648,5   663,5   (117,2) (468,1)  Press release (PDF) http://hugin.info/143702/R/1772320/603753.pdf  HUG#1772320