BOARD COMMITTEES

The Committees set up within the Board have fact-finding, proposing and/or advisory duties in relation to the issues which particularly require an in-depth examination so that there can be an effective and informed discussion of opinions on such issues.

It is a consolidated practice in Pirelli, in harmony with best practices, for the Board to formally define the duties and powers of the specific committee at the date the committee is established (by means of a so-called written charter), and to render them public by publication on the Pirelli Internet website and also reporting on them in this Report.

The Board of Directors set up four committees following its reappointment, on April 21, 2011, including two new committees: the Committee for Internal Control, Risks and Corporate Governance40, the Remuneration Committee; the Appointments and Succession Committee and the Strategies Committee.

The composition of the Board Committees is detailed in table 4.

40 T his name was adopted from September 1, 2009 and substitutes the name “Committee for Internal Control and Corporate Governance”.