De'Longhi

Earnings Release • Mar 12, 2024

FY & Q4 2023 RESULTS

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.

The officer responsible for preparing the company's financial reports declares, pursuant to paragraph 2 of Article 154 bis of Legislative Decree no. 58 of February 24 1988 , that the accounting information contained in this presentation corresponds to the results documented in the books, accounting and other records of the company. Finally, it should be noted that the audit of the Group consolidated financial statements is still ongoing.

As of the date of this Annual Financial Report, the business combination between Eversys S.A. and La Marzocco International LLC has not yet produced any effect on the De'Longhi Group's consolidated financial statements, with the exception of the accounting of some costs for advisory and consultancy services related to the aggregation.

In this presentation:

• "Adjusted" stands for before non recurring items and notional cost of the stock option plans
• "At constant exchange rates" means excluding the effects of exchange rates' variations and of hedging derivatives
• "ForEx" or "FX" stand for Foreign Exchange Rates;
• "M" stands for million and "bn" stands for billion;
• Q4 stands for fourth quarter (October 1 st – December 31st);
• 12M stands for nine months (January 1st December 31st);
• "NWC" stands for Net Working Capital;

• "Capex" stands for capital expenditures, i.e. investments in fixed assets.

• Revenues fell slightly in the first half of 2023, mainly due to a start to the year conditioned by some transitory and extraordinary factors;

• In the second half of the year, the Group achieved organic growth in the high single digits, showing a significant progression and expansion of underlying trends in both the coffee and nutrition and food preparation sectors;
• The group's sales in Q4 were up 4.7% (8% at constant currency), thanks to a strong contribution from the European area and core products.

EUR million	2023	var. %	var. % at constant FX	Q4 2023	var. %	var. % at constant FX
South West Europe North East Europe	1,109.4 797.6	$-1.6\%$ 6.8%	$-1.9\%$ 10.7%	404.3 294.9	10.3% 11.9%	10.1% 16.8%
EUROPE	1,907.1	1.7%	$3.1\%$	699.2	11.0%	12.9%
MEIA (MiddleEast/India/Africa)	174.4	$-11.3\%$	$-7.9\%$	44.4	6.2%	13.4%
Americas	547.0	$-12.2\%$	$-9.7\%$	183.7	$-10.3\%$	$-5.7\%$
Asia-Pacific	447.4	$-3.6\%$	2.4%	150.7	$-1.5\%$	$4.8\%$
TOTAL REVENUES	3,075.9	$-2.6\%$	$-0.2\%$	1,078.1	4.7%	8.0%

• South-Western Europe saw a partial decline in turnover in the year, however the area achieved high-single digit organic growth in the second half of the year. Germany and France saw turnover in the high teens in the fourth quarter;
• North-Eastern Europe recorded a substantial positive trend in 2023, with additional progress made in the last few months of the year, thanks to a significant expansion of the core product categories in the major markets;
• MEIA area had organic growth in the low teens in the fourth quarter, but it remained negative in the year due to macroeconomic conditions;
• in 2023 the result of the Americas area was significantly affected by the impact of the exit from the mobile air conditioning business, net of which the turnover would have been slightly lower than the previous year, with the coffee and nutrition and food preparation business is in positive territory in organic terms in the 12 months;
• finally, the Asia Pacific region achieved an expansion in turnover in organic terms over the twelve months, thanks to an acceleration in the second half of the year, which led to mid-single-digit organic growth in the fourth quarter.

REVENUES BY MARKET (12 MONTHS)

Main Ups & Downs (at constant FX)

REVENUES GROWTH BY QUARTERS

$Q3 - 23$

$Q2 - 23$

$Q4 - 23$

DēLonghi Group

$Q1 - 23$

REVENUES BY PRODUCT LINE (12 MONTHS)

Main Ups & Downs (at constant FX)

(Eur million)	2023	2022	change	change %	Q4-2023	Q4-2022	change	change %
net ind. margin	1,504.3	1,493.3	11.0	$0.7\%$	518.1	477.8	40.3	$\boldsymbol{8.4\%}$
% of revenues	48.9%	47.3%			48.1%	46.4%
adjusted Ebitda	444.2	362.0	82.2	22.7%	179.1	150.0	29.1	19.4%
% of revenues	14.4%	11.5%			16.6%	14.6%
Ebitda	437.8	369.4	68.4	18.5%	176.9	151.6	25.3	16.7%
% of revenues	14.2%	11.7%			16.4%	14.7%
Ebit	329.6	263.5	66.1	25.1%	146.8	122.4	24.4	20.0%
% of revenues	10.7%	8.3%			13.6%	11.9%
Net Income*	250.4	177.4	72.9	41.1%	108.2	78.0	30.2	38.7%
% of revenues	8.1%	5.6%			10.0%	7.6%

• the net industrial margin stood at €1,504.3 million, which equals 48.9% of revenues, compared to 47.3% in 2022, benefiting from a positive effect of the price mix and an easing of inflationary pressures on product costs;
• adjusted Ebitda was €444.2 million, or 14.4% of revenues, a substantial increase from 2022 (at 11.5%). The constant increase in profitability achieved over the year was additionally contributed by partial savings from media and communication ("A&P") investments, which were achieved through improved spending effectiveness and more targeted use of assets and channels. The currency component had a negative impact.

EUR million	Dec 31st, 23	Dec 31st, 22	change 12 months
operating NWC	61.1	288.8	-227.7
operating NWC / Revenues	2.0%	9.1%	$-7.2\%$
Net Financial Position	662.6	298.8	363.8
Net Bank Position	761.7	389.5	372.2
Net Equity	1,811.1	1,659.1	152.0

After achieving notable cash generation in the fourth quarter, the Group ended the 2023 financial year with a positive Net Financial Position of €663M, up €364 M over the course of the year ;

• Free cash flow before dividends and acquisitions totalled €436 M over the 12 months ;
• At the level of operating working capital (equivalent to 2 % of revenues in the 12 months), we highlight: a further reduction in inventory compared to previous years ; an almost steady level of receivables from customers ; a significant increase in debts to suppliers compared to 2022.

13

KEY TAKEAWAYS

The Q4 showed a high-single digit organic growth, extending the improved trend already seen from Q2 and consolidating the phase of gradual post-pandemic normalisation.

The Group has reaffirmed its commitment to communication and innovation, which has been strengthened in recent months by the launch of the new "Perfetto" and "Nutribullet: it's that simple" campaigns.

Net financial position as at 31 December 2023 stood at 663 ME, an increase of $\epsilon$ 364 million over the previous year, thanks to significant cash generation in Q4.

During the year, margins improved significantly due to rigorous cost control, a careful investment strategy and partial easing of inflationary pressures on some industrial costs, allowing the 2022 decline to be quickly recovered.

In the words of the C.E.O., Fabio de' Longhi:

*Guidance on revenues and adj Ebitda estimated consolidating the business combination between La Marzocco and Eversys from March 1, 2024.

Contacts:

Investor Relations:

Samuele Chiodetto $T: +3904224131$ e-mail: investor.relations@delonghigroup.com

Media relations:

$T: +3904224131$ e-mail: media.relations@delonghigroup.com

On the web: www.delonghigroup.com