Elica

Investor Presentation • Apr 27, 2023

Q1 2023 Results ANALYSTS PRESENTATION

THURSDAY APRIL 27TH, 2023

AGENDA

ELICA TURNAROUND PROCESS

ELICA BUSINESS TURNAROUND

	KEY STRATEGIC INITIATIVES	ACHIVEMENTS
Y T LI BI A T FI O R P	▪ EMEA INDUSTRIAL FOOTPRINT Rebalance	▪ Last step of the industrial relocation plan, successfully completed in Q1 2023
	▪ DECOMPLEXITY	▪ Product families reduction of 40%
	▪ OPERATIONAL COSTS REDUCTION	▪ SG&A Resizing and continuous structural cost reduction
N O H TI A S A R	▪ WORKING CAPITAL MANAGEMENT	▪ Self-financing the payment execution of the key strategic initiatives: EMC Acquisition (~30M€) ▪
C E N E G	▪ CAPEX OPTIMIZATION	New Industrial Footprint (~12M€) ▪ → Back to a sustainable dividend policy, buy-back
	▪ OWN BRAND sales growth	▪ From 49% in 2019 to 62% in Q1 2023 own brand sales on total cooking sales
H T W O R G	▪ PRODUCT INNOVATION AND RANGE ENLARGEMENT
	▪ COOKING	▪ New Business categories toward a cooking 360° (LHOV, Ovens, Induction Hobs, Wine cellars) ▪ Aspiration Hob Full Range value proposition
	▪ MOTORS	▪ Doubled net sales in 2 years taking the leadership in the ventilation ▪ Heating: "Hydrogen Ready": 100% Premix range fully certified, Heat-Pump 4

COOKING: FROM CORE BUSINESS TO A COMPLETE RANGE OFFER

Aspiration Hobs HOVs Built-in complements Grow in market share thanks to a Wide range based on design and unique features, able to address the different user needs and flexible for any kitchen configuration Enlarging the offer in built-in leveraging on leadership position in growing markets A breakthrough innovation to create a new cooking segment Cooker hoods Keep the leadership and the unique selling proposition leveraging design and technology. CORE BUSINESS NEW BUSINESS OPPORTUNITIES

TOWARDS TO A COOKING COMPANY

COOKING 360° Design Performance Innovation

MOTORS: BUILD THE FUTURE

SOLUTIONS FOR HEAT PUMPS AND RESIDENTIAL VENTILATION UNITS

100 % H2 READY BLOWERS FOR HEATING SYSTEM

• Co- design activity in progress
• Pre-series expected Q4 2023

• Current FAN production H2 certification on going
• Expected SOP 2025

TOWARD ELECTRIFICATION AND SUSTAINABILITY

Q1 HIGHLIGHTS

Q1 2023 RESULTS

HIGHLIGHTS

NET SALES 129,0 M€

YoY Change -15,0 M€ -10,4% (organic: -10,9%)

EBIT ADJ	YoY Change
6,7 M€	-2,3 M€
5,2%	-1,1 pts

NFP (33,0) M€ Leverage:~0,7 YoY Change -2 M€

• In line with expectations: Cooking market demand still negative aligned with second half of 2022. OWN Brand resilient and Motor slightly positive driven by Heating segment
• Margins protected despite negative sector dynamics: low volumes and persisting high level of inflation, balanced by the flexibility of our new European footprint and effective cost management
• Continued strong ongoing cash conversion financing the payment execution of the last tranche of EMC acquisition (6,5M€) and industrial footprint relocation (1,4M€)

INDUSTRY TREND & MKT SHARE INDUSTRY TREND

Q1-Q4 '22 & Q1 '23 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ Change% vs . Y-1

10 *SOURCE: ELICA GROUP ESTIMATES

**SOURCE AHAM: DATA REFERS TO ALL COOKING PRODUCT RANGES, COVERING ≈ 40% OF THE MARKET

SALES DYNAMIC

SALES KEY DRIVERS & REGIONAL OVERVIEW

Consolidated Sales Variance

SALES DRIVERS BY BUSINESS & BRANDS

Business overview

Q1 2022	31,7	112,3	144,0
Currency	-	+0,7	+0,7
	-0,1%	+0,6%	+0,5%
ORGANIC	+1,0	-16,7	-15,7
	+3,0%	-14,8%	-10,9%
YoY	+0,9	-15,9	-15,0
Change	+2,9%	-14,2%	-10,4%
Q1 2023	32,7	96,4	129,0
Business weights	25%	75%

Cooking B.U. by brand

Q1 2022	52,4	59,9	112,3
Currency	+0,5	+0,2	+0,7
	+1,0%	+0,3%	+0,6%
ORGANIC	-16,2	-0,5	-16,7
	-30,9%	-0,8%	-14,8%
YoY	-15,6	-0,3	-15,9
Change	-29,8%	-0,5%	-14,2%
Q1 2023	36,8	59,6	96,4
Brand weights	38%	62%

ECONOMICS & FINANCIALS ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

€M	Q1				CHANGES vs. PRIOR YEAR
	2023	2022	VAR €	% VAR
					VOLUME
NET SALES	129,0	144,0	-15,0	-10,4%	PRICE-MIX
ADJ EBITDA	12,6	14,9	-2,4	-16,0%
% NET SALES	9,7%	10,4%	-0,6%	-60 bps	RAW MATERIAL INFLATION
ADJ EBIT	6,7	9,0	-2,3	-25,6%	SG&A
% NET SALES	5,2%	6,2%	-1,1%	-110 bps	CURRENCY
NRI	(0,6)	(0,9)	0,3	30,2%	D&A
EBIT	6,0	8,1	-2,0	-25,1%
% NET SALES	4,7%	5,6%	-0,9%	-90 bps	ADJ EBIT
PBT	5,0	7,7	-2,7	-35,1%	NRI
% NET SALES	3,9%	5,3%	-1,5%	-150 bps	FINANCIAL COSTS
NET PROFIT	3,8	5,2	-1,4	-27,6%	COMBINED TAX RATE
% NET SALES	2,9%	3,6%	-0,7%	-70 bps	NET PROFIT
MINORITIES	0,4	0,4	-0,1	-21,8%
GROUP NET PROFIT	3,4	4,7	-1,3	-28,2%
% NET SALES	2,6%	3,3%	-0,7%	-70 bps
ADJ GROUP NET PROFIT	3,9	5,4	-1,5	-28,4%
% NET SALES	3,0%	3,8%	-0,8%	-80 bps

VOLUME	---
PRICE-MIX	+
RAW MATERIAL INFLATION	-
SG&A	+
CURRENCY	+
D&A	-
ADJ EBIT	-2,3
NRI	+
FINANCIAL COSTS	-
COMBINED TAX RATE	+
NET PROFIT	-1,4

Lower margins in line with expectations considering a strongly negative industry

Q1 2023 – NET FINANCIAL POSITION

€M	IQ 2023	IQ 2022	VAR
OPENING NFP	43 9 ,	35 1 ,	(8 8) ,
IFRS16 EFFECT	14 0 ,	12 4 ,	1 6 ,
OPENING NFP NET of IFR16	29 9 ,	22 7 ,	(7 2) ,
OPERATING CASH FLOW	13 0 ,	4 5 ,	8 5 ,
(*) CAPEX	(2 9) ,	(2 2) ,	(0 7) ,
TAXES	(1 1) ,	(1 4) ,	0 3 ,

OPERATING FCF	9 0 ,	0 9 ,	8 1 ,
SALES %	1 6% ,	0 6% ,
Buy Back	(0 4) ,		(0 4) ,
Cash-out Industrial Footprint	(1 4) ,		(1 4) ,
M&A Cash Out	(6 5) ,	(5 0) ,	(1 5) ,
Dividend & Financial Items	(3 4) ,	(3 8) ,	0 4 ,
Other NRI	(0 3) ,	(0 4) ,	0 1 ,
CLOSING of NFP IFR16	33 0 ,	31 0 ,	(2 0) ,

LEVERAGE(NFP/EBITDA) 0,7 0,8

COMMENTS

Key strategic initiatives cash-out, founded though a Solid Free Cash Flow, with stable Leverage:

▪ EU Manufacturing footprint relocation : ~1,4M€ ▪ M&A (Last tranche EMC): ~6,5M€ ▪ Shares Buyback: ~0,4M€

Improvement of the Operating Cash Flow (8,5M€) driven by inventory management and Reverse Factoring Program with structural impact on DPO

CLOSING REMARKS

CLOSING REMARKS

• TOWARDS A "MORE & MORE" COOKING COMPANY
• First quarter revenues in line with our expectations, persisting negative market demand
• Margin Protection in a low volumes and high inflation environment through Europe flexible industrial footprint and agile cost management
• Growing Motors Division, ready to seize by year-end the Growth opportunity coming from the HEAT PUMP demand
• Solid Net Financial Position to support M&A and Strategic Investments

▪ 2023 outlook in line with consensus in an industry scenario where record inflation and decision over interest rates may continue to affect consumer sentiment.

ANNEX: FINANCIAL HIGHLIGHTS

Q4 CONSOLIDATED INCOME STATEMENT

€M	1Q 23	1Q 22	%
Net Sales	129.0	144.0	-10.4%
EBITDA Adj	12.6	14.9	-16.0%
%	9.7%	10.4%	-64 bps
EBITDA	11.9	14.1	-15.1%
%	9.3%	9.8%	-51 bps
EBIT	6.0	8.1	-25.1%
0%	4.7%	5.6%	-92 bps
Net Result	3.8	5.2	-27.6%
%	2.9%	3.6%	-69 bps
EPS* - Euro cents	5.44	7.49	-27.4%

²⁰ (*) EPS is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data.

NET WORKING CAPITAL

EM	2023	2022	△
Trade receivables	46.1	48.5	(2.4)
% on annualized sales	8.9%	8.8%	10 bps
nventories	106.8	101.5	5.4
% on annualized sales	20.7%	18.5%	220 bps
Trade payables	(139.5)	(139.6)	0.1
% on annualized sales	(27.0)%	(25.4)%	(160) bps
Managerial Working Capital	13.4	10.4	3.0
% on annualized sales	2.6%	1.9%	70 bps
Short term assets & liabilities	(6.3)	(12.6)	6.3
% on annualized sales	(1.2)%	(2.3)%	110 bps
Net Working Capital	7.1	(2.2)	9.3
% on annualized sales	1.4%	(0.4)%	180 bps

CONSOLIDATED CASH FLOW

€M	2023	2022
Operating Cash Flow	10.2	2.7
Capex (*)	(2.9)	(2.2)
Cash Flow from Financial Activities	(10.4)	(8.6)
A Net Financial Position	(3.0)	(8.1)

CONSOLIDATED B/S

	2023	2022		2023	2022
Net Operating Fixed Assets	178.5	172.2	Net Financial Position (*)	46.6	44.5
Net Working Capital	7.1	1.3	Group Equity Minorities	138.7 4.8	125.5 6.1
Net Financial Assets	4.5	2.6	Total Shareholders' Equity	143.5	131.5
Net Capital Employed	190.1	176.1	Total Sources	190.1	176.1

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI

€M	2023	2022
	Q1	Q1
RESTRUCTURING SG&A	0,3	0,4
INDUSTRIAL PLAN	0,2	0,5
OTHERS	0,1	0,0
TOT NRI	0,6	0,9

MINORITIES

€M	2023		2022
	MINORTY SHARES	Q1	MINORTY SHARES	Q1
ARIAFINA	49,0%	0,4	49,0%	0,4
AIRFORCE	—%	—	40,0%	0,0
TOT MINORITIES		0,4		0,4

FOCUSED ONE-OFFS TO DELIVER INCREASING MARGINS & ELIMINATE LIABILITIES:

• Corporate SG&A Re-sizing
• Industrial Plan: Project completely delivered
• ARIAFINA (Japan) performance in line with 2022
• AIRFORCE is 100% controlled by Elica since July 2022