De'Longhi

Investor Presentation • May 28, 2024

DēLonghi Group Capital Market Day 2024

May 28th, 2024

50 years of evolution

The beginning

Product diversification: the range expands, from radiators through electric fan heaters to catalytic stoves

The first product created by De' Longhi is an oil-filled radiator

The global launch

The De' Longhi brand is launched globally through major sponsorships

The Group launches Pinguino, the iconic product supported by a TV campaign

Key steps to set up a global firm

Historic partnership with Nespresso

Kenwood and Ariete acquisition

Building market leadership

De' Longhi establishes itself as the market leader in the superautomatic espresso machine

Braun joins the Group, specifically its household products

First step in the professional business, thanks to the acquisition of 40% of Eversys

From product to consumer's experience

In the US, De' Longhi acquires nutribullet global leader in the personal blenders segment

Business combination between La Marzocco and Eversys

		• •		Above €3,3bln	Above €500M	Above €300M
				Approx.	Approx.	Approx.
€

More than 10.500 employees

Our Leadership Team

Giuseppe de' Longhi Chairman and Executive Director

Fabio de' Longhi Vice-Chairman & CEO

Silvia de' Longhi Chief Corporate Service Officer

Nicola Serafin Group's General Manager

Paul Accornero Chief Commercial Officer

Marco Cenci Chief Planning & Control Officer

Aparna Sundaresh Chief Marketing Officer

Debora Guma Chief Information Officer

Roberto Ceschin Chief People Officer

Matteo Pecci Chief Operations Officer

Martin Strehl Eversys's CEO

The innovation is part of our DNA

Group research centres

Italy, Germany, UK, US and China, as well as cross-brand structures and Design teams dedicated to specific business segments

Innovation Partnerships

Multiple partnerships and research activities with top universities worldwide

Patents over 1 .000 A portfolio of more than 1000 patent families

Investment in R&D

In the last 5 years, the Group invested* more than €300 M€ to improve its products and innovation processes

Total Group ca. 2,4% on sales

Espresso pioneers, resulting in innovative solutions

Nutrition explorers, leading to clever solutions

ActiveBlade

PowerBell Plus

BEAN ADAPT TECHNOLOGY

COLD EXTRACTION

iTexture Control

Extensive internal expertise in core technologies, systems and processes, that led to Multiple products awards

reddot winner 2024

DēLonghi Group

based on pro forma FY23

Manufacturing Excellence

100% of Professional Coffee machines produced internally

HANDCRAFTED APPROACH

Over 80% of Household Coffee products produced internally (100% Fully-Auto and Pump machines)

SUPERIOR KNOW HOW IN THE INDUSTRY

Over 40% of the Others categories produced internally (above 90% Kitchen Machine - Hand Blender)

MIX BETWEEN INTERNAL COMPETENCES AND CO-SUPPLY STRATEGY

Reported figures

Key factors for the De' Longhi's achievements

From Comfort & Traditional Kitchen to Coffee & Nutrition

Expanding geographical coverage

Establishing as a global market leader

Fostering sustainable choices

Global communication campaign

From Appliances to Consumer experiences

Strategic acquisitions

O

O

O

O

O

From Comfort & Traditional Cooking to Coffee & Nutrition

Over the years, the Group has successfully shifted its focus from traditional cooking and comfort to a global lifestyle approach, becoming a leader in the coffee and nutrition categories.

Expanding geographical coverage

The Group has expanded its worldwide reach, diversified its product offerings, and strengthened its market leadership in both established and emerging regions.

More balanced geographical relevance, thanks to North America organic growth and acquisitions.

Establishing as a global market leader

De' Longhi's primary focus is to establish its products as premium and market leaders.

Organic growth and acquisitions were developed in order to accomplish those purposes.

Establishing as a global market leader

First espresso coffee machine «carbon neutral»

Our appliances allow customers to reduce food waste and encourage the use of fresh products

Next De' Longhi Group's priorities

Coffee market growth drivers

How De' Longhi has been leading the pack

Taking it to the next level

Coffee consumption has increased significantly

The rise in consumer education and the emphasis on quality in the café industry have lifted the coffee quality standard and consumer expectation.

1 st Wave: The traditional coffee

Coffee is known as commodity coffee and it was used as a morning drink to recharge batteries.

Period: beginning to mid twentieth century

2nd Wave A shift from commodity to branded chains

Coffee becomes a lifestyle product, with social aspects

Period: mid to end twentieth century

3rd Wave A shift from branded chains to specialty coffee

Along with barista training and professionalism, coffee bean origin and quality became more important.

Period: beginning twentyone century

4th Wave The expansion from coffee to coffee beverages

Technology is used to take coffee experiences to the next level, variety of coffee and beyond (such as cold brew, myxology…)

Period: now

Coffee has become part of our daily routine

Coffee has changed its role – it is no more a commodity – it's an experience both in and out of home!

Frequency of drinking coffee

AROMA and IN-CUP results are the core essence and spirit of the coffee experience

A majority of coffee drinkers agree that the best cup of coffee is made from freshly ground beans and are interested in testing new varietals

Consumers are interested in knowing and learning more about coffee:

• Country of origin of the coffee
• Type of coffee beans and blends
• Freshness of the coffee beans
• Level / degree of roasting

DēLonghi Group

Source: external survey on Global Coffee Drinking Habits , based on more than 8k respondents

The market for espresso makers has grown, as consumers have became more sophisticated and Espresso coffee expansion is outpacing total market growth

The Fully-Auto is recognized as the most versatile product that is adaptive to the fourth wave of coffee

Coffee consumer tendencies have changed over time, generations and culture.

and Mocktails

Roasts

Coffee market growth drivers

How De' Longhi has been leading the pack

Taking it to the next level

De' Longhi is the only brand that covers all consumer needs and coffee segments

Leading-edge innovation

Design & Quality & Technology

Building the coffee experience at home

Investing in outstanding communication

Younger and Wider Target Audience

Multiple Moments of use

Additional reason-why for purchase or trade up

Coffee consumer tendencies have changed over time, generations and culture

Leading-edge innovation

Our latest products are all designed to leverage and amplify these trends

Leading-edge innovation

Our latest innovations are all designed to leverage and amplify these trends

Leading-edge innovation

We're not simply launching new products...

---we are unlocking new experiences

Design & Quality & Technology

Design & Quality & Technolcoty

Building the coffee experience at home

Key consumer category drivers: Fully-Auto*

• 1 To get a better coffee at home

• 2 To have a variety of drinks

• 3 To personalize my coffee

Key consumer drivers for selecting a De' Longhi's Fully-Auto*

1 De' Longhi quarantees a good quality #2 De' Longhi has a good reputation #3 De' Longhi was recommended to me

*De'Longhi fullautomatic early buyers survey, 2024

From espresso to coffee experience

Plenty of customisation choices and receipts to elevate the consumer service level

Ambassador Campaign renewed

Growing Brand Awareness and Mental Availability

Building Emotional Connection

Amplifying Premiumness and Brand Value Perception

Coffee market growth drivers

How De' Longhi has been leading the pack

Taking it to the next level

Address emerging trends beyond the espresso category, introducing new technologies and solutions

Strengthen mid-to-high end leadership and increase premiuness position in the Fully-auto category

Leverage the Nespresso partnership, which is still driving espresso at home expansion

Strengthen our position in the pump segment trough the expansion of the "La Specialista range"

Capitalize on the low penetration of espresso, both in existing and emerging markets

Our goals

EXPAND PENETRATION ACROSS ALL COFFEE SEGMENTS

Target '24-'26 Cagr

HOME COFFEE MAKERS CAN GROW AT MID TO HIGH SINGLE DIGIT

Nutrition

Consumer preferences are fast evolving

The Group is reframing growth strategy

Future-fit value creation plan

Source: survey greater than 5k respondents FRA, DE, IT, AU, UK, US. Social listening

Becoming more important

Control over quality & freshness is the second biggest reason to cook at home

Top 3 concerns: Hyper processed Added sugars Saturated fat

Sustainability Biggest link to quality 66% Kind to planet 64% Freshness 50%

Food is becoming multicultural and 'glo-cal'

of cuisines cooked at home: More than 4 cuisines 56% Younger consumers 71%

Easy to manage preferences with cooking at home vs other options

Cooked at home 86% Eat outside 36% Delivery 21% Ready to eat. 17%

Information and inspiration hungry

Young consumers Cook with a phone or tablet

59%

Search - Information

How to Keto, intermittent, gluten free

15 Mn

DēLonghi Group

SOCIAL

Trendy topics Mediteranian, vegan, vegetarian

2 Mn

Shrinking space and wallet

2\3 people think space is too less

=

DēLonghi Group

Source: Quant survey: Q3. How would you describe the size of these spaces in your kitchen? %

Cost conscious

65%

81%

Nutrition

Consumer preferences are fast evolving

The Group is reframing growth strategy

Future-fit value creation plan

nutribullet® fits wonderfully with this phenomenon

nutribullet: it's that simple

nutribullet.

nutribullet.

Expanding across geographies: early signs of success

BRAUN

1

Which are the barriers to Hand Blender ownership?

BRHUN

30% Have other appliances that meets needs

17% Don't do enough food prep

UNLIMITED VERSATILITY

Attract new consumers Expand current consumers

MORE than a hand blender

world's largest attachment system*, for unlimited versatility

KENWOOD

KENWOOD

Light weight

Compact & Wonderful gift

express serve

6 to #3 Food Processor 2023 and to #2 in Europe in just one year

FASTEST growing brand in 2024

Multipro GO +4pp Mkt share on total food processors

● Viral TitkTok video campaign with influencers 20M views and 34M on instagram

IT FR DE UK 0

Nutrition

Consumer preferences are fast evolving

The Group is reframing growth strategy

Future-fit value creation plan

De' Longhi's nutrition plan

Optimise portfolio in line with consumer preferences

Drive innovation to resolve consumer pain points and evolve category boundaries

Social by Design: Scale up influencer and affiliate marketing

Leverage CRM and connected machines to cross-sell and drive expandability

Scale up e-commerce, reviews program and DTC selling models

PLAY OUR BRAND PORTFOLIO WITH SHARP CATEGORY FOCUS

FOCUS ON INNOVATION, MARKETING DATA DRIVEN AND NEW APPROACH TO THE CONSUMER EXPECTATIONS

Professional Coffee

The market's growth and consistent enhancement in coffee quality

La Marzocco and Eversys's role in leading the market

Combining capabilities for leveraging opportunities

LE MAR ZITE CO

Coffee consumption has increased significantly

Population expansion, rising per capita income, and a growing middle class enhance coffee volume and quality everywhere

Coffee Consumption by Country

The lifestyle associated with coffee shops has a major impact on the evolution of the coffee industry, spreading the coffee consumption across the world.

Coffee is trending worldwide

Consumption (tons)

Branded Coffee Shops by Region

Modern coffee shops offer an alternative way to socialise between work and home, and they are influencing consumer lifestyles that value convenience, social engagement, and high-quality experiences

Total Coffee shops per M population

The professional coffee market is expected to steadily expand

Expected High single digit expansion of number of coffee shops in Asia and a low single digit growth in Europe and the US

Filter coffee is still the most popular in the US, but younger customers prefer espresso-based beverages (as Icedcoffee, Cappuccino).

Consumers demanding higher quality and improved experiences as their knowledge and expectations increase

Above 60% of industry leaders think there is plenty of opportunity for business expansion, so improving footfall and beverages

Automatic coffee machines grind beans, portion coffee, and add milk foam.

Semi-automatic coffee machines separate bean grinding, espresso brewing and milk heating processes and thus need to be operated by a barista

Machines use capsules/pods to brew coffees and espresso (milk can be added via separate appliance)

Vending machines make coffee from beans, liquid, or powder, but they use milk powder and are less sophisticated

Filter coffee machines brew traditional black coffee from ground beans, using fine (e.g. paper) filters instead of sieves

Professional Coffee

The market's growth and consistent enhancement in coffee quality

La Marzocco and Eversys's role in leading the market

Combining capabilities for leveraging opportunities

LE MAR 2011 10

Offices and Branded Resellers
Distributors
Operational Footrpint
People
% Spare parts & Service

LOVED BRAND

INNOVATION IS IN LMZ'S DNA

ADJACENT CATEGORIES

THE HOME OPPORTUNITY

SUPERIOR IN-CUP QUALITY

(EVERSYS

ADVANCE CORE TECHNOLOGY

DESIGN TO SIMPLIFY MAINTENANCE

INNOVATIVE SOLUTIONS

Superior In-Cup quality

Consistency

Automated calibration and telemetry ensure precise, high-quality beverages even during peak hours, minimizing errors and waste.

Superior In-Cup quality

Working with Eversys is like having a silent expert by your side, ensuring every cup reflects our passion and dedication to coffee.

Chris Loukakis (World Latte Art Champion 2011)

Eversys machines bring a new level of precision to our craft. They're not just machines; they're our partners in pushing the envelope of coffee excellence.

Dale Harris (World Barista Champion 2017)

Peak times have become more manageable without needing extra staff on shift, as the machine can just step up a gear… without any drop in quality.

Boram Um (World Barista Champion 2023)

Advance one technology

Telemetry has been a game-changer for many customers, enabling remote software integration that allows for unparalleled control over coffee profiling, milk monitoring, and water management

Cup Quality (Differentiation)

Asset Efficiency (Total Cost of Ownership)

125,464

evertiye

10,037

OVERSYS

Design to simplify maintenence

Each Eversys espresso machine is built in modules with a technician's mind set, ensuring rapid access for technical intervention with minimal downtime, quick replacement and reduced maintenance costs.

Innovative solutions

NEW TECHNOLOGIES

R&D leads the pack in professional espresso technology on:

• Cold brew
• Milk system .
• Brewing .
• · Cleaning

loT

Developed ecosystem of IoT partners covering payments, under-counter solutions, self-service coffee, etc.

TELEMETRY

Industry Leadership, tracking more than 33 million beverages monthly

Iconic design

Officine Fratelli Bambi Bespoke is an extraordinary design collaboration between brands and artisans to create the ultimate handcrafted espresso machine 180

Le Café Lacoste at KaDeWe Porsche Carrera Cup Limited-edition RIMOWA

Loved brand

Triathlon legend Jan Frodeno

"It's quite temperamental, this, but I love it… It's the best, " Beckham tells Beckham docuseries, as he ushers him into his kitchen at the beginning of episode two.

Loved brand

Jimmy Butler

Innovation is in La Marzocco's DNA

Adjacent categories

Brand awareness, technical competence, production know how are among the factors that enable La Marzocco to move into adjacent areas.

Just the addressable grinder market is worth around over € 300 M

The Home opportunity

A significant opportunity in a developing area, leveraging brand knowledge and know-how to serve the luxury home market

Price

Professional Coffee

The market's growth and consistent enhancement in coffee quality

La Marzocco and Eversys's role in leading the market

Combining capabilities for leveraging opportunities

LE MAR 2011 10

Exploit combined business opportunities, collaborating on partnerships and commercial propositions

Take advantage of the Group's size for achieving economies of scale in sourcing and supply chain

Joint technological know how for developing new innovative solutions, as the cold coffee trend

Riding the Home opportunity and exploring adjacent category potential

COFFEE SHOP GROWTH AND EQUIPMENT IMPROVEMENT

SUPERIOR IN-CUP QUALITY, TECHNOLOGICAL EXPERTISE, ICONIC DESIGN

Our medium term goals

3 years Business Plant

3 years Business Plan /

• •

• •

• •

• •

• •

• •

Mid single digit growth, driven by Home Coffee in key geographies

• •
• •
• •

• •
• •

Total Group: Business performances by Product Segment

-

100

200

300

400

500

600

700

3Y Group's Adj Ebitda margin blocks

VOLUME

Volume growth led by coffee (both home and professional) and nutrition

PRODUCTION COSTS

Production cost normalization (raw materials, electronic components and freights) and efficiencies driven by volumes

CHANGE PERIMETER

Consolidation of La Marzocco, with accretive Ebitda marqin

PRICE MIX

A&P

Improve the product mix through the premiumization on core categories

OPEX

Long-term projects development to enlarge product ranges both in coffee and nutrition

Growing investment in advertising and communication to support all products 'perfect launch' and coffee leadership

DēLonghi Group

Adj Ebitus bridge

Price Mix development

Excerpt from Investor Day 2021

Since 2019, the new commercial policy combined with increased investments in media and communication has generated a positive effect

8

Price Mix development

Positive trend is continued, as so Price Mix effect, in particular for a further improvement of mix is expected positive for the next three years

Capital Allocation's key factors

CAPEX

Investing in product categories and ranges, digitalization, production capacity and automation

DIVIDENDS

Cash distribution for shareholders' return

M&A

M&A as a consistent strategy for backing organic growth

Free Cash Flow (before DVD and M&A)

DēLonghi Group

€ 150 M per year

Dividends

Total DVD cumulated

since 2016

2016

2017

2018

2019

2020

2021

DēLonghi Group

2022

2023

PAY OUT RATIO at 40% of Net Earnings, that in the last years has supported 3 significan acquisitions

Threshold can be modified in case of significant changes of the net financial position

Net Financial position

A robust FCF enabled 3 major acquisitions, maintaining a solid financial position

DēLonghi Group

* The Enterprise Value at which the acquisition deal was completed

Key criteria about M&A

Leadership position (Brand, Technology, Market)	Strategic fit: category and geo complementarity	Adjacent to Group's know how and management continuity
Ebitda accretive to the Group's average	ROCE and FCF conversion of the target above Group's performance	Expected Revenues growth above Group's trend

Group's last deals

Leadership position (Brand, Technology, Market)
Strategic fit (category - geo)
Adjacent know how and management continuity
Ebitda accretive
ROCE and FCF conversion performance
Expected Revenues growth above Group's trend

100

3 years Business Plan /

6 STRATEGIC ENABLERS	Talent Development	Sustainability
Beyond 3 years up to 5 years	Innovation	Digital Transformation
Ensure long term vision and development strategy	Media and market activation	Operational Excellence
3 SPECIFIC WORKSTREAMS Across 3 years Focus and investments on dedicated workstreams	Professional Ecommerce Coffee accelleration	NUTRIBULLET International expansion
YEARLY PLAN By year Plan developed by regions, brands and products categories	�������������������� . ����������������������������� DOODOOOOO (DeLonghi) BRHUN KENWOOD nutribullet. Ariete	. 000000000000000 . Обовооор 0000 > [2VERSYS

Strategic Enablers

Operational Excellence	Sustainability	Media and market activation
Focus on operational excellence, logistic simplification, procurement optimization and process automation	Integrate sustainability into business processes through the endorsement of three overarching commitments	Expand media investments in core categories across all key markets and channels
Talent Development	Innovation	Digital Transformation
Empower people's development and growth by valuing each individual talent, addressing employees' ambitions and expectations	Enhance our innovation capabilities across all the Group to ensure a long-lasting products leadership	Accelerate our digital adoption and evolve into a fully digitalized and data-driven company

Sustainability by De' Longhi Group

Our journey started some years ago

Our Sustainability Commitments

Our Sustainability Plan

COMMITMENT AREAS	INITIATIVES		— Enabling Pillars
	Biodiversity risk assessment		的 ocesses
	Minimization of waste sent to landfill		门通 Processes	Land
	Products refurbishment	ിന് Products	门门 Processes	Capital Partners
	Reduction of packaging's environmental impact	대		agos
	Reduction of products' environmental impact	ില്‍ Products		Capital Partners
	Submission of SBTi Targets and definition of a carbon reduction plan	일	ದ್ದಾರೆ. ಬೆಳೆ 11	400
	Water efficiency	Products	11 Processes
	Inclusive products guidelines	ി	ಿಗ್ಗೆ ಮಾಡಿದ್ದಾರೆ. ಬೆಳೆದ
	Enablement of healthy and sustainable lifestyles	ിച്ച് Products	ನ್ನಾಗಿ 111 People Processes	Land
	Employees' wellbeing and development		ನ್ನಾಗಿ
	Gender equality		ಿಗ್ಗೆ ಸ್ಮಿಕಾ
	External communities impact		న్నారు. విశ్ People
	Safe environment		புர

Working on a Sustainability Culture

Our People Diversity, competences, talent development among the key ingredients of people development	The energy we use Constant increase of energy efficiency and renewable sourcing	The materials we choose Implementation of eco-design quidelines and ongoing research of sustainable materials
The optimisation we execute	The people who inspired us	The partners we engage
Improve operational efficiency by optimizing resource utilization, minimizing waste and digitalizing operations	Fostering conscious choices and responsible behaviour (Inspirational speeches, courses)	Working on best sustainable practices with suppliers, customers and other stakeholders (Code of Conduct, Audits)

Our People

Inspirational meeting with prof. Joseph Stiglitz

INSPIRING UPSKILLING

Group's platform is designed to foster sustainability education

switch ('in a responsible day

The energy we use

In 2023, total emissions market based decreased by 55% compared with 2022, due to 100% grid-sourced electricity covered by Guarantees of Origin (GO)

In 2023, the energy intensity (energy consumed kwh/pieces produced) decreased from 6.7 to 5.8

Eco-Design Guidelines

Handbook of Guidelines to Design Low Environmental Impact

HANDBOOK OF GUIDELINES TO DESIGN SUSTAINABLE DELONGHI PRODUCTS

Implementation of Eco-Design approach

By implementing this approach, we lessen environmental hazards, improve efficiency, lower costs, and attract environmentally conscious consumers, positioning ourselves for long-term success.

RIVELIA:

the 1st CARBON NEUTRAL domestic coffee-machine

This presentation might contain certain forward-looking statements that reflect the company's current views with respect to future events and financial and operational performance of the company and its subsidiaries.

Forward looking statements are based on De' Longhi's current expectations and projections about future events. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments, many of which are beyond the ability of De' Longhi to control or estimate. Consequently, De' Longhi S.p.A. cannot be held liable for potential material variance in any looking forward in this document.

Any forward-looking statement contained in this presentation speaks only as of the date of the document. Any reference to past performance or trends or activities of De' Longhi S.p.A. shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. De' Longhi S.p.A. disclaims any obligation to provide any additional or updated information, whether as a result of a new information, future events or results or otherwise.

This presentation does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

These are published financial data which, given the extension of the analysis period, may not be entirely comparable as a result of changes in the scope of consolidation or in the applicable accounting principles.

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