De'Longhi

Investor Presentation • Nov 9, 2023

9M & Q3 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.

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;
• Q3 stands for third quarter (July 1st September 30th);
• 9M stands for nine months (January 1st September 30th);
• "NWC" stands for Net Working Capital;
• "Capex" stands for capital expenditures, i.e. investments in fixed assets.

THE 9 MONTHS HIGHLIGHTS

• The start of the year was impacted by some temporary factors, but over the last six months the Group has seen a constant improvement of the organic growth, thanks to Q3 achieving growth of 3.3% (8.1% at constant currency) and Q2 in positive territory excluding the impact from the discontinuity in the US market;
• The third quarter was supported by a positive performance in both the coffee and cooking food preparation segments, showing progress towards the end of the normalization phase.

EUR million	9M - 2023	var. %	var. % at FX constant	Q3 - 2023	var. %	var. % at FX constant
South-West Europe	705 1	4% -7	7% -7	242 5	6 9%	0% 7
North-East Europe	502 7	4 0%	3% 7	181 1	5 7%	11 8%
EUROPE	1 207 8 ,	-2 9%	-1 9%	423 6	6 4%	9 0%
America	363 3	-13 2%	-11 5%	137 4	6 2%	13 8%
MEIA	130 0	-16 0%	-13 7%	44 2	-9 8%	-2 3%
Asia-Pacific	296 7	-4 6%	1 2%	101 5	-5 5%	2 5%
TOTAL REVENUES	1 997 8 ,	-6 1%	-4 2%	706 6	3 3%	8 1%

In the quarter:

• South-Western European area showed an expansion in turnover of 7%, thanks to the increase in both core categories which contributed to achieving double-digit performance in Germany, Austria and the Iberian Peninsula;
• North-Eastern Europe accelerated in Q3, benefiting from significant growth in the UK, Benelux and in the area of the Czech Republic, Slovakia and Hungary, supported both by a recovery in the food preparation business and by a continuation of coffee expansion;
• MEIA region was still in negative territory, mainly due to the macro context and the currency impact;
• in America, in the first part of the year sales were affected by the discontinuity relating to the exit from mobile air conditioning business, but net of this Q2 was up and Q3 accelerated (+13.8% organic) thanks to the contribution of coffee and Nutribullet's products;
• finally, the Asia Pacific region showed an expansion in turnover of 2.5% at constant exchange rates, but with a significant negative currency impact in many countries in the area both in the quarter and in the nine months (8% of negative currency effect in the 3Q).

REVENUES BY MARKET (9 MONTHS)

Main Ups & Downs (at constant FX)

REVENUES BY PRODUCT LINE (9 MONTHS)

Main Ups & Downs (at constant FX)

million) (Eur	9M-23	9M-22	Change %	Q3-23	Q3-22	Change %
ind . margin net % of revenues	986 2 49 4%	1 015 5 , 47 7%	9% -2	346 1 49 0%	319 4 46 7%	4% 8
adjusted Ebitda % of revenues	265 1 13 3%	212 0 10 0%	25 1%	105 0 14 9%	62 9 9 2%	66 9%
Ebitda % of revenues	260 9 13 1%	217 8 10 2%	19 8%	101 9 14 4%	67 2 9 8%	51 5%
Ebit of % revenues	182 8 9 2%	141 2 6 6%	5% 29	74 7 10 6%	9 40 6 0%	82 8%
Net Income (pertaining to the Group) of % revenues	142 2 7 1%	99 4 4 7%	43 0%	59 5 8 4%	27 7 4 1%	114 4%

In the quarter:

• the net industrial margin stood at € 346.1 million, equal to 49% of revenues compared to 46.7% in 2022, benefitting from the recovery of some production costs. We highlight that in the 9 months the price-mix effect was positive by € 30.4 million;
• adjusted Ebitda amounted to € 105 million, or 14.9% of revenues, a noticeable improvement compared to the 9.2% of the third quarter of 2022 and in continuity with the marked improvement achieved in the first six months;

BRIDGE TO ADJUSTED EBITDA (Q3 2023)

DēLonghi Group

(DeLonghi) KENWOOD BRAUN nutribullet. Ariete

BRIDGE TO ADJUSTED EBITDA (9M 2023)

EUR million	30 9 2023	30 9 2022	change (12 months)	31 12 2022	change (9 months)
operating NWC	259 3	472 7	-213.5	288 8	-29.5
Net Equity	1 719 9 ,	1 648 0 ,	71.9	1 663 4 ,	56.5
Financial Position Net	326 0	28 8	297.2	298 8	27.2
Net Bank Position	411 3	115 9	295.4	389 5	21.9
/ oper. NWC Revenues	8 6%	14 8%	-6.2%	9 1%	-0.5%

• The Group closed the first nine months of 2023 with a positive Net Financial Position at € 326 million, strongly improving vs. 2022 (€ 28.8 million);
• Free Cash Flow before dividends and M&A was equal to 14.3 M€ in the quarter and € 369.2 M€ in the 12 months;
• In details, In terms of operating working capital (8.6% of 12-month rolling revenues), the negative change in inventories (because of increased production to prepare for peak season) was not counterbalanced by the positive cash generation of trade receivables and payables' management. It should also be noted that level of inventories in September 2023 (€ 730.2 million) was much lower than the level of last year (€ 892.1 million).

NET CASH FLOW (9 MONTHS)

NET CASH FLOW (12 MONTHS)

KEY TAKEAWAYS

The Q3 showed a high-single digit organic growth, extending the improved trend already seen in 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 weeks by the launch of the new "Perfetto" and "Nutribullet: it's that simple" campaigns.

The Group ended the 9M period of 2023 with a € 326 M positive Net Financial Position, thanks to an efficient working capital management and a robust cash generation from operations in the last 12 months.

In the first nine months of the year, profit margins showed a steady increase compared to the previous year, as a result of careful pricing strategy and a strict control of investments, together with a recovery of logistics costs an easing of pressure on the remaining operating costs.

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

Contacts:

Investor Relations:

Fabrizio Micheli, Samuele Chiodetto T: +39 0422 4131 e-mail: investor.relations@delonghigroup.com

Media relations:

T: +39 0422 4131 e-mail: media.relations@delonghigroup.com

On the web: www.delonghigroup.com