Elica

Investor Presentation • Feb 14, 2023

FY 2022 Preliminary Results ANALYSTS PRESENTATION

TUESDAY FEBRUARY 14TH, 2022

AGENDA

FY 2022 RESULTS

HIGHLIGHTS

NET SALES 548,6 M€

YoY Change +7 M€ +1,3% (organic: +1,6%)

EBIT ADJ
33,0 M€
6,0%

YoY Change +0,8 M€ 10 pts

YoY Change -7 M€

NFP (29,9) M€ Leverage:~0 ,6

• Positive organic growth @1,6% in a negative industry, leveraging Cooking Elica brand leadership and Motor division double-digit expansion
• ~60 M€ inflationary costs more than offset by agile price increase execution and effective cost management: margins protected despite negative sector dynamics
• Strong ongoing cash conversion, self-financing the payment execution of the key strategic initiatives: industrial footprint relocation (12M€), M&A (13M€) and buy back (2M€), while coming back to a sustainable dividend policy.

Q4 2022 RESULTS

HIGHLIGHTS

NET SALES 129,6 M€

YoY Change -4,9 M€ -3,6% (organic: -5,9%)

EBIT ADJ 7,4 M€ 5,7%

YoY Change +0,1 M€ +0,2 pts

NFP (29,9) M€ Leverage:~0 ,6 YoY Change -7 M€

▪ In line with expectations: value market share gain (Europe) in a strongly negative cooking industry.

• Margins supported by industrial footprint relocation project completion, quick production capacity rebalance and effective cost management while defending current pricing.
• Solid cash conversion despite payment for Dividend and Capex driven by margin growth, ~20M€ of Inventory reduction with positive carryover effect on Q1 2023

2022 – COOKER HOODS INDUSTRY SHIPMENTS

(Units YoY Change)

	Q1	Q2	Q3	Q4	FY
Western Europe	(1.9%)	(9.7%)	(14.7%)	(14.5%)	(10.2%)
Eastern Europe (incl. CIS)	(2.7%)	(14.0%)	(16.8%)	(17.6%)	(12.7%)
Europe	(2.2%)	(11.6%)	(15.5%)	(15.8%)	(11.3%)
EMEA	(1.7%)	(10.0%)	(13.5%)	(13.6%)	(9.7%)
North America	4.0%	(8.0%)	(11.0%)	(8.0%)	(5.7%)
Latin America	(5.5%)	(5.0%)	(6.6%)	(6.6%)	(6.0%)
AMERICAS	0.1%	(7.2%)	(9.4%)	(7.4%)	(5.8%)
ASIA	2.9%	(5.3%)	0.9%	(11.8%)	(4.0%)
WORLD	0.7%	(7.4%)	(5.9%)	(11.7%)	(6.3%)

GENERAL REMARKS

Industry and consumer activity has still slowed under the weight of inflation and rising interest rates, although the most recent signs suggest, in the absence of unforeseen shocks, that inflation may have peaked as wholesale energy and food prices have started to decline from previous high points.

Key evidence

EMEA

High energy and food prices, weak confidence, supply bottlenecks and the initial impact of tighter monetary policy have led to a significant slowdown in consumer demand. Only recently consumer confidence has shown signs of improvement, although it continues to be far from the levels reached last year.

Eastern Europe is still the area most affected by the consequences of the ongoing geopolitical tensions.

AMERICAS

In the United States, while inflation still remains high, albeit declining, real incomes have fallen and the savings rate has contracted. Home sales also continue to be sluggish, as potential buyers not only face rising mortgage rates but also a low inventory, which in turn contributes to rising prices. All this again has led to a decline in demand.

In Latin America, rising inflation has triggered a negative effect on economic stability. The slowdown reflects the weakening of domestic demand, due to rising consumer prices and political uncertainty.

ASIA

In China, economic momentum weakened again due to new COVID-19 restrictions in several cities, which hurt economic activity and depressed final consumer spending. The weak sentiment manifests itself in very low consumer demand.

In India, recent indicators have continued to show an expansion in manufacturing and services.

SALES DYNAMIC

SALES KEY DRIVERS

• On a Full year basis positive organic growth driven by Cooking own brands (above market with share gains in core markets) and Motor business unit double-digit expansion
• The inflationary trend further driving down consumer confidence in Q4 and sharpening customers destocking measures, resulted in -5,9% organic sales down in the quarter

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

FY 2021	88,3	453,0	541,3
Divestiture	+19,0	-30,1	-11,1
& M&A	+21,6%	-6,7%	-2,1%
Currency	-0,1	+9,9	+9,8
	-0,1%	+2,2%	+1,8%
ORGANIC	+18,5	-9,9	+8,6
Growth	+20,9%	-2,2%	+1,6%
YoY	+37,4	-30,1	+7,3
Change	+42,3%	-6,6%	+1,3%
FY 2022	125,7	422,8	548,6

COOKING SALES BY BRAND

Net Sales

Net Sales

FY 2021	203,7	249,2	453,0
Divestiture	-	-30,1	-30,1
& M&A		-12,1%	-6,7%
Currency	+7,3	+2,6	+9,9
	+3,6%	+1,1%	+2,2%
ORGANIC	-33,6	+23,7	-9,9
Growth	-16,5%	+9,5%	-2,2%
YoY	-26,3	-3,8	-30,1
Change	-12,9%	-1,5%	-6,6%
FY 2022	177,4	245,4	422,8

KEY PRODUCT CATEGORIES PERFORMANCE

• Persisting growth trend in all strategic product families
• NikolaTesla range @ 16% of Cooking Sales.

FROM TWO SEPARETED COMPANIES WITH A TOTAL NET SALES OF 80 M€ TO ONE COMBINED ENTITY OF 126 M€ TURNOVER: +50% VALUE CREATION

PRODUCT AWARDS UPDATE

DESIGN for PASSION NikolaTesla Unplugged Design Fabrizio Crisà

Latest Award won

Finalist

Already winner of

DESIGN for LOVE LHOV Design Fabrizio Crisà

Finalist

CROSS-CHANNEL CAMPAIGN TO BOOST THE NIKOLATESLA RANGE THROUGH THE NEW NT UNPLUGGED

ECONOMICS & FINANCIALS ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

	Q4			FY
€M	2022	2021	% VAR	2022	2021	% VAR
NET SALES	129,5	134,4	(3,6)%	548,6	541,3	1,3%
ADJ EBITDA	13,3	13,8	(3,8)%	56,6	57,1	(0,9)%
% NET SALES	10,3%	10,3%	0 bps	10,3%	10,5%	-20 bps
ADJ EBIT	7,4	7,4	1,0%	33,0	32,3	2,4%
% NET SALES	5,7%	5,5%	30 bps	6,0%	6,0%	10 bps
NRI	(2,3)	(2,8)	20,3%	(5,7)	(22,4)	74,4%
EBIT	5,2	4,5	14,3%	27,3	9,9	175,3%
% NET SALES	4,0%	3,4%	60 bps	5,0%	1,8%	310 bps
PBT	3,9	3,8	1,3%	25,9	23,2	11,3%
% NET SALES	3,0%	2,8%	10 bps	4,7%	4,3%	40 bps
NET PROFIT	3,3	2,2	49,0%	17,8	17,5	1,8%
% NET SALES	2,6%	1,7%	90 bps	3,2%	3,2%	0 bps
MINORITIES	0,4	0,5	(25,8)%	1,6	5,4	(70,6)%
GROUP NET PROFIT	2,9	1,7	73,3%	16,2	12,1	33,8%
% NET SALES	2,3%	1,3%	100 bps	3,0%	2,2%	70 bps
ADJ GROUP NET PROFIT	4,6	3,8	20,6%	20,6	15,9	29,0%
% NET SALES	3,6%	2,9%	70 bps	3,7%	2,9%	80 bps

CHANGES vs. PRIOR YEAR

	Q4	FY
VOLUME	--	-
/ PRICE MIX	+ +	+
RAW MATERIAL INFLATION	--	-
SG&A	+	+
CURRENCY	+	+
D&A	+	+
ADJ EBIT	0 1 ,	0 8 ,
NRI	+	++
FINANCIAL COSTS	-	-
COMBINED TAX RATE	+	-
NET PROFIT	1 1 ,	0 3 ,

FY Margins growth despite inflationary pressure and negative industry

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI

€M		2022		2021
	Q4	FY	Q4	FY
PATENTS AGREEMENT	---	-3,2	---	---
RESTRUCTURING SG&A	1,2	2,2	1,1	4,8
INDUSTRIAL PLAN	0,5	6,2	0,8	15,8
OTHERS	0,5	0,5	1,0	1,8
TOT NRI	2,3	5,7	2,8	22,4

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

• Patent Asset co-ownership
• Corporate SG&A Re-sizing
• Industrial Plan: additional voluntary exit agreement and operational execution costs.

MINORITIES

€M		2022			2021
	MINORTY SHARES	Q4	FY	MINORTY SHARES	Q4	FY
ELICA PB INDIA	—%	—	—	74,5%	—	3,4
ARIAFINA	49,0%	0,4	1,6	49,0%	0,5	1,7
AIRFORCE	—%	—	—	40,0%	0,1	0,3
TOT MINORITIES		0,4	1,6		0,6	5,4

• MINORITIES impact reduced due to INDIA deconsolidation
• ARIAFINA (Japan) performance in line with 2021
• AIRFORCE is 100% controlled by Elica since July

12M 2022 – NET FINANCIAL POSITION

€M	12M 2022	12M 2021	VAR
OPENING NFP	35,1	61,0	25,9
IFRS16 EFFECT	12,4	9,7	2,8
OPENING NFP NET of IFR16	22,7	51,4	28,7
OPERATING CASH FLOW	63,8	61,8	2,0
(*) CAPEX	(23,3)	(23,3)	0,0
TAXES	(6,5)	(7,5)	1,0
OPERATING CF	34,1	31,1	3,0
% SALES	6,2%	5,7%
Buy Back	(1,7)		(1,7)
Industrial Footprint Cash-out	(11,8)		(11,8)
M&A Cash Out	(13,1)	(13,0)	(0,1)
Divestiture Impact		13,2	(13,2)
Dividend & Financial Items	(7,8)	(0,4)	(7,4)
Other NRI	(6,8)	(1,8)	(5,0)
CLOSING NFP NET of IFR16	29,9	22,7	(7,2)

LEVERAGE(NFP/EBITDA) 0,6 0,6

COMMENTS

Key strategic initiatives cash-out, founded though Operating Cash flow, with stable Leverage:

• EU Manufacturing footprint relocation : ~12M€ ▪ M&A (EMC, AIRFORCE): ~13M€ ▪ Shares Buyback: ~ 2M€
• Dividend Distribution: ~ 4M€
• Successfully launched Reverse Factoring Program with structural impact on DPO
• 20M€ of Inventory Reduction vs Q3 2022, with positive carryover effect on Q1 '23

CLOSING REMARKS

CLOSING REMARKS

2 Years of successful execution…

• New highly committed management team
• All mid term strategic initiatives achieved
• Second Record Year in ^a row in terms of Sales, Ebit Margin and Net Profit in the most adverse inflationary, demand and geopolitical scenario of the last decades
• Clear strategy for both Cooking and Motor Divisions in term of products, customers and regional distribution

… are be the baseline to successfully overcome 2023 challenge

• Production flexibility abroad and ^a solid industrial footprint in Italy to face ^a "Two-speed" year, with an H1 2023 even more difficult than end of 2022 and a recovery in H2, supported by product range expansion and new OEM customers
• We remain committed on Full Year targets aligned with Consensus, with margins growing gradually in the second part of the year
• Solid and robust Net Financial Position to sustain strategic investments and M&A opportunities

ANNEX: FINANCIAL HIGHLIGHTS

Q4 CONSOLIDATED INCOME STATEMENT

€M	4Q 22	4Q 21	%
Net Sales	129.5	134.4	$(3.6)\%$
EBITDA Adj	13.3	13.8	$(3.8)\%$
%	10.3%	10.3%	$(2)$ bps
EBITDA	11.1	13.2	$(16.1)\%$
$\%$	8.5%	9.8%	$(127)$ bps
EBIT	5.2	4.5	14.3%
$\%$	4.0%	3.4%	63 bps
Net Result	3.3	2.2	49.0%
$\%$	2.6%	1.7%	91 bps
$EPS^*$ - Euro cents	4.70	2.66	74.5%

²⁵ (*) 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.

FY CONSOLIDATED INCOME STATEMENT

€M	FY 22	FY 21	%
Net Sales	548.6	541.3	1.3%
EBITDA Adj	56.6	57.1	(0.9)%
$\%$	10.3%	10.5%	$(24)$ bps
EBITDA	50.8	38.5	31.9%
℅	9.3%	7.1%	215 bps
EBIT	27.3	9.9	175.3%
$\%$	5.0%	1.8%	315 bps
Net Result	17.8	17.5	1.8%
%	3.2%	3.2%	2 bps
$EPS^*$ – Euro cents	25.85	19.14	34.7%

(*) 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

€M	2022	2021	Δ
Trade receivables	48.5	82.2	(33.7)
% on annualized sales	8.8%	15.2%	$(640)$ bps
Inventories	101.5	84.9	16.6
% on annualized sales	18.5%	15.7%	280 bps
Trade payables	(139.6)	(141.2)	1.7
% on annualized sales	$(25.4)\%$	$(26.1)\%$	70 bps
Managerial Working Capital	10.4	25.8	(15.5)
% on annualized sales	1.9%	4.8%	$(290)$ bps
Short term assets & liabilities	(12.6)	(34.5)	21.8
% on annualized sales	$(2.3)\%$	$(6.4)\%$	410 bps
Net Working Capital	(2.3)	(8.7)	6.4
% on annualized sales	$(0.4)\%$	$(1.6)\%$	120 bps

CONSOLIDATED CASH FLOW

€M	2022	2021
Operating Cash Flow	42.7	52.5
Capex $(*)$	(23.3)	(23.7)
Cash Flow from Financial Activities	(26.4)	(0.5)
$\wedge$ Net Financial Position	(6.9)	28.3

CONSOLIDATED B/S

	2022	2021		2022	2021
Net Operating Fixed Assets	180.8	167.5	Net Financial Position $(*)$	43.9	35.2
			Group Equity	132.1	117.2
Net Working Capital $-2.3$		$-8.7$	Minorities	5.4	6.9
Net Financial Assets	2.9	0.5	Total Shareholders' Equity	137.6	124.1
Net Capital Employed	181.5	159.3	Total Sources	181.5	159.3