Marzocchi Pompe

Investor Presentation • Apr 4, 2023

FULL-YEAR 2022 RESULTS PRESENTATION

April 2023

Disclaimer

Disclaimer
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Information	The document does not represent in its entirety neither Marzocchi Pompe S.p.A. nor the project that Marzocchi Pompe S.p.A. aims to achieve and, therefore, there may be some omissions concerning information related to it. Marzocchi Pompe S.p.A. is not obliged to provide the recipient with any updates or additions to the document, even if it contains errors, omissions or inaccuracies.
	The document was produced with due care and diligence; nevertheless, Marzocchi Pompe S.p.A. gives no warranty as to both the completeness, accuracy and correctness of the information and the forecasts or opinions expressed therein. Some parts of the document contain statements which are long-term forecasts, which represent then estimates subject to risks and uncertainties and, therefore, may differ, even substantially, from any future results.
	Neither Marzocchi Pompe S.p.A. nor its employees assume responsibility for the content of the document, even in cases where the recipient may suffer, even implicitly, any damages or losses caused by the omission of information, data and analysis.
General terms &	The document has been prepared by the management of Marzocchi Pompe S.p.A
conditions	The document is not to be construed as an offer or solicitation to buy or subscribe shares issued by Marzocchi Pompe S.p.A. or the respective managers, directors, employees or agents. It is agreed that, if you were to make an offer or invitation to purchase or subscribe shares or related financial instruments issued by Marzocchi Pompe S.p.A., the same would be carried out in compliance with the applicable regulations and with the use, when applicable, of an admission document.

• Company at a Glance
• Full-Year 2022 Results & Outlook
• Achievements
• Market & Competitive Positioning
• Appendix
• Business Overview

Marzocchi Pompe at a glance: world leader in top-performing products

	Marzocchi Pompe at a glance: world leader in top-performing products
Company	Marzocchi Pompe is a leading world player in the design, motors, which are used in sectors like: industrial (textile energy, etc.), mobile (agricultural machines, forklift trucks,	production and marketing of high machines, machine tools, plastic injection etc.) and automotive (transmissions, power	performance external gear pumps and machines, medical equipment, steering, attitude adjusters,).
Key Success Factors	Marzocchi Pompe boasts a wide range of products well market needs in terms of displacements and interfacing. A key feature is the continuous investment in R&D aimed The production of the historical brand «Marzocchi Pompe» Predosa and Casalecchio di Reno, through an extremely	known for its high performance and great at satisfying the customer demand for is entirely carried out in Italy, in two verticalized process that allows to keep the	reliability, covering most of the high performance products. locations nearby Bologna: Zola product quality under control.
Main Consolidated Financials	€/000 2019 2020 2021 2022 Net Sales 39.171 34.143 40.538 48.513 EBITDA 5.422 4.129 7.153 7.557 EBITDA Margin 14,4% 12,2% 16,4% 15,4% Net Income 203 229 1.591 1.962 Net Equity 18.676 18.444 19.796 21.400 Net Financial Debt 12.535 9.252 7.838 7.848 • Over 1,0 mln pumps produced • More than 800 active clients 2022 KPI • Total employees to date 260 Calculated on Sales Revenues + WIP, in 2019 net of the take or pay clause effect on automotive sales, not applicable in subsequent years	2022 Revenues by Business Line 19,0% 37,5% 23,7% 19,8% Sales Network Automotive Industrial Mobile	2022 Revenues by geographic area 0,4% 9,7% 36,3% 28,5% 25,1% AMERICA EUROPA ITALIA ASIA RoW
Strategy	Marzocchi Pompe aims to continue: • to upgrade the production plant in order to expand • to invest in R&D in order to enlarge the product range, • to increase penetration on Mobile and Industrial America) • to develop innovative products for the Automotive	its capacity and improve efficiency consolidating its position in the reference applications in emerging/new markets (India, market, as witnessed by the important award	market Africa & Middle East, Oceania, South from a leading world player

2022 Results

NET SALES UP 19.7% AT EURO 48.5 MLN, DRIVEN BY STRONG CORE BUSINESS* GROWTH AT +21.7%

THE CORE BUSINESS* SALES REACHED EURO 38.9 MLN IN 2022, POSTING A HEALTHY 21.7% Y-O-Y INCREASE THANKS TO MARZOCCHI CAPABILITY TO RETAIN AND EXPAND CUSTOMER BASE IN A VERY DIFFICULT COMPETITIVE SCENARIO. SALES GROWTH ALSO BENEFITED FROM SIGNIFICANT SELLING PRICE UPLIFT THE AUTOMOTIVE SALES SATISFACTORILY GREW 12.1% Y-O-Y TO EURO 9.6 MLN, WITNESSING MARZOCCHI COMMERCIAL STRENGTH AND ITS CAPABILITY TO APPLY COST-TO-PRICE ADJUSTMENTS. NORTH AMERICA SALES ROSE BY 45%, REPRESENTING THE MAIN MARKET WITH 36.3% OF TOTAL REVENUES

VERY STRONG EBITDA MARGIN AT 15.4%, JUST SLIGHTLY DOWN FROM PREVIOUS YEAR 16.4%, DUE TO THE INERTIA IN PASSING ON COST INCREASES (ENERGY & RAW MATERIAL COSTS) TO SALE PRICES

THE DISTINCTIVE "MAKE" APPROACH COUPLED WITH A TARGETED INCREASE IN INVENTORY, ENABLED MARZOCCHI POMPE TO KEEP DELIVERY TIMES UNCHANGED AND TO AVOID ANY DISRUPTION IN THE PRODUCTION CHAIN. IN ADDITION, ENERGY SAVING MEASURES HAVE BEEN DEFINED, WHICH ADDED TO THE COMPANY RELENTLESS EFFORTS TO IMPROVE OPERATIONAL EFFICIENCY DID LIMIT THE IMPACT ON MARGIN

NET FINANCIAL DEBT DECREASED TO EURO 7.8 MLN (DOWN 23% VS. 10.1 MLN IN JUNE 2022, STABLE VS 7.8 MLN IN 2021) BENEFITING FROM HIGH CASH FLOW GENERATION DESPITE RELEVANT WORKING CAPITAL AND CAPEX REQUIREMENTS LINKED TO STRONG BUSINESS GROWTH WHILE KEEPING NET DEBT FULLY UNDER CONTROL, SIGNIFICANTLY LOWERING IT ON A SIX-MONTH BASIS AND KEEPING IT FLAT ON A YEAR-ON-YEAR BASIS

TIGHT CONTROL ON CASH MANAGEMENT REPRESENTS ONE OF MARZOCCHI MAJOR STRENGTHS AS IT ALLOWED FOR BOOSTING MARKET PENETRATION

* Core Business Sale (high-performance external gear pumps for various industrial sectors) are obtained by deducting the Automotive Market Sales from Total Sales Revenue

Revenues up 19.7% to € 48.5 mln, EBITDA margin at a robust 15.4%

* EBITDA Margin based on Sales Revenue + WIP

Source: consolidated financial statements

• Revenues topped Euro 48.5 million in 2022, recording a strong 19.7% increase and marking the

full-year all-time high for Marzocchi Pompe • Growth was mainly driven by the Core Business sales (Euro 38.9 million, +21.7%), Automotive sales posted a healthy 12% rise to Euro 9.6 million despite persistently challenging market scenario • EBITDA reached Euro 7.6 million (vs. Euro 7.15 million 2021), confirming Marzocchi resilience in the global scenario of significantly rising energy and raw material costs

• EBITDA margin only slid to 15.4% (from 16.4% in 2021), as the higher weight of production costs (54.3% on Sales from 52.1% in 2021) was partially offset by the efficiency gains following Marzocchi Pompe great flexibility at both technical and production levels. In addition, its customized product excellence allowed for pricelist increase (although with some inevitable inertia vs. cost rise)

Source: consolidated financial statements

• Revenues by Core market segments (Sales Network, Industrial and Mobile) exceeded 80% of Total Revenues, reaching Euro 38.9 million (vs. Euro 32 million in 2021), thanks to generally recovering demand from pandemic levels and driven in particular by Marzocchi Pompe distinctive capability to serve clients with high performing products on a customized basis • Weight of Automotive sales slid little below 20% (vs. 21.1% in 2021) as growth rate was 12% vs. 21.7% of Core Business. Thanks to Marzocchi high reputation with top global players, Automotive sales performed very well in a basis Core Business

persistently difficult market outlook on a global

* EBIT Adjusted is Net of depreciation from revaluation resulting from the merger from LBO

Source: consolidated financial statements

EBIT stood at Euro 2.7 million, +18.8% vs. Euro 2.3 million in 2021, confirming Marzocchi Pompe excellent operating performance

• Adjusted EBIT, calculated net of revaluation depreciation and amortisation resulting from the merger from LBO, amounting to Euro 0.9 million, equalled Euro 3.6 million with a 6.6% increase compared to Euro 3.4 million in 2021 • In 2022 Net Profit stood at Euro 2.0 million, with a 23% growth vs. 1.6 million in

1. This excellent performance witnesses Marzocchi Pompe capability to seize all the business opportunities also in challenging markets, putting in place prompt actions to control costs and push sales forward

(8,0)
Eur 000	31-Dec-22	31-Dec-21
Liquidity	6,927	5,681
Net current financial debt	2,215	1,043
Non-current financial assets	257
Payables to bank	(8,803)	(7,571)
Payables to leasing companies	(1,038)	(831)
Payables to others	(480)	(480)
Non-current financial debt	(10,063)	(8,881)
Adjusted Net Financial Position	(7,848)	(7,838)
Source: consolidated financial statements

• Net Financial Debt decreased to Euro 7.8 million at the end of 2022, from Euro 10.1 million in June 2022 and flat compared to Euro 7.8 million at 31 December 2021

• Marzocchi showed once again its strong capability to generate cash flow in very challenging times and despite the important increase in working capital (to Euro 13.5 million vs. Euro 10.1 million in 2021) linked to nearly 20% sales growth, and the increase in capex to expand production capacity (Euro 3.6 million, or 7.4% on sales, from Euro 1.4 million in 2021) • The increase in Shareholders' Equity at the end of 2022 (to Euro 21.4 million, +8% YoY) is due to Net Profit growth

• ON 29TH MARCH 2023 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 15 CENTS PER SHARE (VS. EURO 12 CENTS PER SHARE IN 2021), FOR A TOTAL DIVIDEND AMOUNT OF EURO 976.950. IF THE SHAREHOLDERS' MEETING DUE ON 28TH APRIL 2023 APPROVES ITS DISTRIBUTION, THE DIVIDEND WILL BE PAID AS FROM 10H MAY 2023, AFTER DETACHMENT OF THE COUPON ON 8TH MAY 2023 THE DATE OF ENTITLEMENT TO PAYMENT (RECORD DATE) IS SET AT 9TH MAY 2023

Achievements

• IN OCTOBER 2022 MARZOCCHI POMPE LAUNCHED "FCIP" AND "FCIM", THE NEW RANGE OF GEAR PUMPS AND MOTORS
• ENTIRELY MADE OF CAST IRON THESE NEW PRODUCTS TARGET APPLICATIONS WITH HIGHER PRESSURES THAN THOSE ACHIEVABLE WITH THE GHP PUMPS AND TO COVER AS MUCH AS POSSIBLE THE MARKET NEEDS,

• GHM MOTORS ALREADY IN THE CATALOG, HAVING A CAST IRON COVER AND FLANGE BUT A DISTINCTIVE ALUMINUM BODY THANKS TO THE COMPACT DESIGN AND THE CAPABILITY TO SUPPLY INTEGRATED VALVES, THE NEW PUMPS AND MOTORS ARE

• IN OCTOBER 2022 MARZOCCHI POMPE HAS PURCHASED AN INDUSTRIAL PROPERTY OF APPROXIMATELY 4800 SQUARE METRES, OF WHICH APPROXIMATELY 1800 COVERED, NEXT TO THE ZOLA PREDOSA PLANT FOR A TOTAL AMOUNT OF € 1.15 MILLION THE NEW BUILDING ALLOWS MARZOCCHI TO INCREASE PRODUCTION CAPACITY AND IMPROVE OPERATIONAL EFFICIENCY THE PURCHASE IS PART OF THE GROUP'S REAL ESTATE RATIONALISATION AND FOLLOWS THE SALE IN JULY, FOR € 670,000, OF A SMALLER BUILDING (ABOUT 3,000 SQUARE METRES), ALSO LOCATED IN ZOLA PREDOSA BUT DISTANT FROM THE CURRENT PLANT AND INDUSTRIALLY NO LONGER USED RENOVATION WORK FOR THE NEW FACILITY INCLUDE THE INSTALLATION OF PHOTOVOLTAIC PANELS, A FURTHER MOVE WHICH ENHANCE THE MARZOCCHI'S

• COMMITMENT TOWARDS SUSTAINABILTY objectives " declared Gabriele Bonfiglioli, CEO of Marzocchi Pompe.

• THE YEAR 2022 WAS CHARACTERIZED BY GREAT ECONOMIC UNCERTAINTY, MAINLY DUE TO RISING RAW MATERIAL & ENERGY

• COSTS, AMPLIFIED BY THE WAR IN UKRAINE, THE INTEREST RATE RISE AND THE ONGOING HEALTH EMERGENCY IN CHINA IN SUCH A CHALLENGING SCENARIO, MARZOCCHI POMPE ACHIEVED ITS BEST-EVER SALES REVENUE IN 2022, CONFIRMING THE BRAND EXCELLENT MARKET POSITIONING AS WELL AS THE EFFECTIVENESS OF THE GROUP BUSINESS MODEL FEATURING A DISTINCTIVE "MAKE" APPROACH AND HIGH PRODUCTION FLEXIBILITY, BOTH SUPPORTING ITS KEY STRENGHT: THE CAPABILITY TO SUPPLY TOP-PERFORMING CUSTOMIZED PRODUCTS FULLY DEVELOPED ON CLIENT NEEDS, WHICH ALSO ALLOWS TO FURTHER STRENGTHEN CUSTOMER RELATIONSHIP AND ULTIMATELY TO GAIN MARKET SHARE MARZOCCHI'S ROBUST ORDER BACKLOG TO DATE COUPLED AN ENVIABLE FINANCIAL SOLIDITY MAKE MANAGEMENT LOOK AT THE FUTURE WITH GREAT CONFIDENCE. THE CURRENT STRONG FLUCTUATIONS IN ENERGY AND RAW MATERIAL COSTS, ON THE ONE HAND, ARE BEING PARTIALLY OFFSET BY ONGOING EFFICIENCY GAINS (AT BOTH DESIGN AND PRODUCTION LEVEL), ON THE OTHER THEY WILL BE ABSORBED BY THE NEW PRICE LISTS IMPLEMENTED IN THE SECOND HALF OF THE YEAR AND ONWARDS THE FORECASTS FOR THE 3-YEAR PERIOD 2022 –2024 (OUTLINED IN THE MARCH 29 PRESS RELEASE) REMAIN UNCHANGED: SIGNIFICANT ORGANIC GROWTH IN REVENUES, WITH A CAGR 2021-2024 IN THE 6-8% RANGE
• RETENTION OF THE GOOD LEVELS OF PROFITABILITY ACHIEVED DURING THE YEAR MAINTAINING AN OPTIMAL LEVEL OF LEVERAGE (NET DEBT/EBITDA 1-1.5X) AND A LEVERAGE RATIO BELOW 50% OF SHAREHOLDERS' EQUITY CONFIRMATION OF THE DIVIDEND POLICY ALREADY ADOPTED IN RECENT YEARS

ESG Achievements: Strong commitment towards Sustainability (1/2)

• Sustainability Report Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, in order to improve its footprint to enhance value creation
• Marzocchi Certifications

ESG Achievements: Strong commitment towards Sustainability (2/2)

New «Green» Projects in 2023

• Treedom Forest In February Marzocchi launched the creation of the "Marzocchi Pompe Forest", giving away the first 300 trees to its employees
• This project will not only bring a contribution to carbon dioxide reabsorption but, being composed of fruit trees donated to the local community (in Africa, South America and Asia), it will also have a positive impact for the latter in social terms • The size of Marzocchi Forest will be expanded in the years to come
• Photovoltaic panels for the recently bought Zola Predosa Plant This new facility aims at increasing Marzocchi production capacity at the same time improving its operational efficiency • The renovation work includes the installation of photovoltaic panels to supply "green energy" to Marzocchi production processes • The investment has an estimated payback of 3.5 years

A brand new Security Operation Center

• In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project • Marzocchi's Cognitive Security Information Center C SOC will operate the: ^o Physical and Biometric Security of last generation

o H24x7x365 monitoring of company networks ^o Attack Prevention & Detection ^o Response Orchestration

• Cynet tasks are:

• o Monitoring & Control

• IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH EFFICIENCY IN THE SECOND HALF OF 2021, THE PLANNED RANGE EXTENSION WAS BOOSTED BY: 1. THE NEW "ELIKA 1P" AND "ELIKA K1P" PUMPS, WHICH FURTHER IMPROVE PERFORMANCES 2. THE NEW "FTP – FLUID TRANSMISSION PUMP", WHICH OPENS UP NEW MARKETS AND THAT AT WAS WAS PRESENTED IN MARCH AT THE "VTM" IN TURIN AND IN JUNE AT THE "IVT EXPO" IN KOLN (BOTH EVENTS TOOK PLACE IN PRESENCE)

we have already invested over 1 million euros, in a recently renovated area of the historic headquarters of Casalecchio (BO), a new department focused on the production of the ELIKA pump in its various versions. We want to focus on the product, with higher margins than traditional ones, which we believe may be one of our main drivers of growth for the coming years. Also, in the second half of the year we will continue to invest about half a million euros, aimed at launching new products and increasing the efficiency and productivity of our production sites." declared Gabriele Bonfiglioli, CEO of Marzocchi Pompe.

2022 Live Exhibitions: Marzocchi Pompe is always in the forefront

• VTM Torino Automotive Symposium
• Fucine Hall Booth 48 IVT Expo Cologne – Industrial Vehicles Symposium Stand 1100
• GFPS Naples Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table Bauma Munich – World Mobile Exhibition EIMA Bologna – Agricultural Exhibition CTI Berlin – Automotive Symposium Main Hall Stand F4
• Hall A4 Stand 414
• Hall 18 Stand B19

Dritev Baden Baden – 05.07.2023 Agritechnica Hannover – 12.11.2023

Hannover Messe – 17.04.2023 World Fluid Power Exhibition – Booth H5.F18 Automotive Symposium - Main Hall Perumin Arequipa – 25.09.2023 Mining Exhibition – Hall 5 World Agriculture Exhibition – Hall 17, Booth E43 CTI Berlin – 05.12.2023 Automotive Symposium - Booth E7

• 11 April Road Show in Paris
• 6 October Mid Cap Event in Paris
• 18 November Integrae Finance Gala

4 – 5 April	Road Show in Paris
13 April	FY 2022 Results Presentation
Begininning of October	H1 2023 Results Presentation
9 – 10 October	Road Show in Paris
Second Half of November	Integrae Finance Gala

Market & Competitive Positioning

Hydraulic market – geographic breakdown Hydraulic end - use markets' forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25.7 billion in 2000, to around Euro 41.5 billion in 2020 of which Euro 29.9 billion (72%) stemming from the hydraulic sector, and Euro 11.6 billion (28%) from the pneumatic sector (Source: ISC2 – 2020 – International Fluid Power Statistics – date of publication: 10 December 2021). In Italy, the Fluid Power market in 2020 was estimated to be around Euro 1.9 billion, of which Euro 1.2 billion (63%) stemming from the hydraulic sector, and Euro 0,7 billion (37%) from the pneumatic sector. (Source: Assofluid – Il Fluid Power in Italia, Rapporto di settore 2020). Below is given a geographic breakdown of the home hydraulic market, estimated by ISC, and the weighted growth forecast for the hydraulic end-use markets, published by Oxford Economics.

€29.9 bn
	Notes: World and regional aggregates consist of the 21 countries included within the analysis
Source: CETOP 3– ISC Statistics 2020	Source: Oxford Economics –	National Fluid Power Association, Forecast of End-Use Markets-			Winter 2021

Focus on hydraulic pumps' market

Within the Hydraulic home1 market, the pumps' segment is estimated by ISC to be around Euro 4.9 billion in 2020 (17%), of which Euro 3.2 billion (11%) coming from the reciprocating pumps' segment (axial and radial piston pumps) and Euro 1.8 billion (6%) from the rotary pumps' segment (gear, vane, orbital, screw and other types of pumps). Focusing on the rotary pumps sector, in which MP operates, USA stands out as the main marketplace with around Euro 0.738 billion (41.2%) activity, followed by Asia, with Euro 0.730 billion (40.8%), and Europe with Euro 0.324 billion (18%).

Note (1 )The Home Market concept is used, as explained by CETOP on the report European Fluid Power Directory 2017/2018, for the market estimates in order to cover all of the fluid power market, and not exclusively that segment covered by companies which are part of the organization. For statistic's sake, the country where the product was built is irrelevant, while the country where the product was sold is considered.

Note (3) CETOP - European Fluid Power Committee –is an organization of associations present in 17 European countries and representing more than 1.000 companies operating Fluid Power, representing 80 to 90% of the country's industry, most of the times.

Competitive positioning

Competitive positioning
Characteristic Company	Quality & Performance	Customer service	Gear Pumps Range	Fluid Power Range	Customization	Competitiveness vs Price	Quality vs Price
Marzocchi Pompe
Bosch Rexroth
Bucher
Casappa
Concentric
Galtech/Interpump
Hema / DB
HPI / JTech
Parker
Roquet
Salami
Turolla/Sauer Danfoss
Settima
Vivoil
Source: Marzocchi Pompe SpA	management estimates		Legend:	High	Medium - high	Medium	Low

Leadership in external gear pumps market

Appendix

MP core business: manufacturing of external gear pumps and motors

• The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the delivery circuit occurs through the rotation of the two toothed wheels (the so-called "gears") inserted in the pump body, which is realized through the coupling with an endothermic motor or an electric motor. The oil that is transferred is located between the teeth compartments of the gear wheels and the pump body. The pressure that is created in the flow circuit downstream of the pump is proportional to the load determined by use. • MP produces external gear pumps with straight teeth with an involute profile and helical rotor pumps with a conjugate profile. Both are part of the group of pumps called "volumetric", to which vane pumps, internal gear pumps and screw pumps also belong. The piston pumps also belong to the same category, which differ from the previous ones for the alternative movement instead of the rotary one. • The gear motor is the actuator that transforms the hydraulic energy supplied by the pump into mechanical energy, creating a rotary motion with a defined number of revolutions and supplying a certain torque to the shaft on which mechanical systems such as fans and pulleys are connected.

Overview of pump composition and application examples

The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further components can also be integrated (for example valves), which vary depending on the type of product and customization requirements by the customer.

Product applications

Medical equipment Actuators for surgical tables, diagnostic equipment, latestgeneration stretchers, dental chairs: in general, for small medical equipment, where reliability and silence are necessary. Fixed applications (eg presses, machine tools, etc.) that require hydraulic power units with high performance levels. This sector was among the first that the company positioned itself in. Agricultural machinery Even in agricultural machinery there is an important evolution in terms of hydraulic systems. Increasingly high performance and low noise levels are required. MP is specialized in the production of very low displacement pumps, which require a high technological level to obtain high efficiency standards.

Industrial

Micro-hydraulics

There are many pump applications in the nautical sector: movable bulkheads, thrusters, opening and closing valves, flap drives, boarding and disembarking ladders, piloting systems. Machinery and equipment for material handling Even for these type of machines, very often used inside production facilities, low noise levels are increasingly required in addition to high efficiency standard.

Marine

Construction machinery Extreme flexibility in terms of interface versions (shafts, ports, flanges, etc.) and very high reliability are the features required Gardening machines In this type of application it is essential that oil-hydraulic pumps and motors guarantee the complete absence of contamination.

by this market. Means of transport Brake systems for trams and city trains as well as for airport vehicles. In a world that makes mobility an irreplaceable necessity, products that guarantee the highest level of reliability and safety are in high demand. Municipality issues require a very wide range of products, all with maximum reliability. New energy sources In these applications, such as wind and solar, the compatibility with the environment is of fundamental importance. Even in electric cars, small displacements gear pumps are increasingly used in many applications such as: powertrain, power steering, attitude regulators (with PPM of defectiveness tending to zero).

Municipality

Automotive

Technological innovation and quality standards

The Group's business model is focused on the design, production and marketing of high-performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand "Marzocchi Pompe", which is highly recognizable

	Technological innovation and quality standards
The Group's business manufactures almost all in the sector.	model is focused on the design, production and marketing of high-performance external gear pumps and motors. The Company the main components within its own production sites and uses the historical brand "Marzocchi Pompe", which is highly recognizable
Automated and highly innovative production process	• Technologically advanced production process with a high degree of automation • Strategic phases of the production process entirely managed in house • Internal department dedicated to the design and production of equipment and machinery for the internal production needs • Application of the concepts of lean production, with the aim of maximizing efficiency while minimizing stocks
Continuous product and process innovation	• Continuous product development to meet the increasing market requirements, in terms of silence and efficiency In particular, the R&D activity has allowed Marzocchi Pompe to stand out for: − its wide range of products' cubic capacities (from 0.12 cc to 200 cc) − the high performances of its products, with particular reference to the micro hydraulics field (displacements starting from 0.12 cc) − the patented ELIKA product, low noise pump, high efficiency even at low speed and flow rate regularity due to low pulsations
Focus on quality and excellence	• Made in Italy product • High quality standards • IATF 16949 (formerly ISO TS) certifications (required for the supply of Automotive customers) and ISO 14001 for the plant in Zola Predosa (BO), and ISO 9001 for the plant in Casalecchio di Reno • 100% qualified product ensured by a test carried out on specifically designed test benches

Target markets

(*) The industrial and mobile machines sectors are served by MP both directly, through direct sales, and indirectly, through a distributors' channel/external sales network; the share of sales registered from the sales network can't be attributed to either sector, industrial or mobile machines

Main client composition

• The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 9.7% of sales and the top 10 representing 19.6%. The Automotive sector, on the other hand, has fewer clients making up for most of its sales. In total, the company has more than 800 active clients • The following table reports the weight on consolidated revenues of the top 3 and 10 clients for both sectors (Industrial & Mobile and Automotive, accounting for 80.2% and 19.8% of total sales, respectively) according to the financial year's consolidated data of Dec. 31st 2022

	Overview weight % Industrial & Mobile2	clients1 top	Automotive
	Revenues	%	Revenues 2022	%
	2022
Top 3	4.73 mln	9.7%	9.61 mln	100,0%
Top 10	9.50 mln	19.6%	9.61 mln	100,0%
Total	38.90 mln	100.0%	9.61 mln	100,0%

• % 93% of automotive' s revenues are made from sales to only one client, with whom MP subscribed, on October 2014, a multi-year contract expired on December 31st 2022 but this contract has been renewed until 2034 and guarantees the supply of micro-pumps by MP, with the following clauses: - Minimum order volume, with penalties for violation of amount - Pre-established price, mainly based on volumes ordered - Price-adjustment according to previously established mechanisms, based on current raw materials' prices
• 100,0%
• 100,0%

Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors, sales1 , American branch operations and Chinese branch operations

• a network of 7 salesmen

Nota (1): the term "distributors" describes those subjects that purchase MP's products and then re-sell them, establishing a prolonged business relationship with the company

Investment highlights
Large target market	• The Hydraulic market is large, estimated to be around Euro 8.6 billion in 2020 in Europe (Source: CETOP) and Euro 1.9 billion in 2020 in Italy (Source: Assofluid)
experiencing growth	• Evidence of upward trend of Italian hydraulic market in the 2009-2018 period, with a 15.2% decrease in production from 2019 to 2020 due to the Covid-19 pandemic, which is now totally over
Wide range of product applications	• Countless possibilities in terms of MP pumps' and motors' applications, thanks to the company's versatility and product personalization options
	• Production process relies on high-tech machinery and extensive use of automation
Business model geared towards innovation	• Internalization of strategic production process, guaranteeing constant monitoring and high-quality standards • Continuous product innovation, as it can be seen with ELIKA, one of MP's pumps covered by two patents, which stands out for its outstanding technological level that allows it to produce low noise emissions and low pulsations, but has high efficiency
High profitability and	• EBITDA margin at 15.4% in 2022, little lower vs. 2021 (16.4%) and well above 2020 (12.2%)
cash flow generation	• High free cash flow (3.6M€ in 2022, vs. 3.5M€ in 2021) allowing for further decrease in Net Debt with a comfortable NFP/EBITDA of 1.04x
	• Renowned production ability for customized products
Esteemed execution capabilities	• High standards on quality, reliability and product performance
	• Highly responsive customer service, and competent assistance in pre- and post-order phases

Organizational structure and production sites

• Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 1st of January 2023 the workforce consists of 260 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills that strengthens the efficiency of the work team. The

Marco Minghetti

History

Consolidated Profit & Loss

Eur 000	31-Dec-22		31-Dec-21
Sales Revenue	48,513	100%	40,538	100%
WIP changes	451		3,044
Other revenue	1,211		1,230
PRODUCTION VALU	50,176		44,812
Raw materials consumption	(12,790)	(26.1%)	(10,716)	(24.6%)
Service costs	(13,785)	(28.2%)	(12,005)	(27.5%)
Costs for use of third-party goods	(382)	(0.8%)	(316)	(0.7%)
Various operating costs	(445)	(0.9%)	(436)	(1.0%)
VALUE ADDES	22,773	46.51%	21,339	48.96%
Staff costs	(15,216)	(31.1%)	(14,185)	(32.5%)
EBITDA	7,557	15.43%	7,153	16.41%
Depreciation, amortizations, and write-
downs	(4,843)	(9.9%)	(4,869)	(11.2%)
OPERATING PROFIT (EBIT)	2,714	5.54%	2,285	5.24%
Financial income and charges	(184)	(0.4%)	(231)	(0.5%)
Financial value adjustments	50	0.10%	(106)	(0.2%)
EARNINGS BEFORE TAX	2,580	5.27%	1,948	4.47%
Income tax for the year	(618)	(1.3%)	(358)	(0.8%)
NET INCOME	1,962	4.01%	1,591	3.65%

(National accounting standards + IAS 17)

Consolidated Balance Sheet

Eur 000	31-Dec-22	31-Dec-21
A) NET FIXED ASSETS	17,512	19,081
Intangible fixed assets	1,065	1,306
Tangible fixed assets	14,907	16,391
Financial fixed assets	1,540	1,384
B) NET WORKING CAPITAL	13,518	10,105
Inventories	14,008	12,121
Advances from customers	(199)	(11)
Trade receivables	8,376	7,703
Other receivables	2,092	2,680
Trade payables	(6,671)	(7,503)
Other payables	(3,592)	(3,628)
Provisions for risks and charges	(1,454)	(1,570)
Other assets/liabilities	958	313
C) GROSS INVESTED CAPITAL	31,030	29,186
D) EMPLOYEE SEVERANCE PAY	(1,525)	(1,552)
E) NET INVESTED CAPITAL	29,505	27,633
Covered by
F) EQUITY	(21,400)	(19,796)
G) NET FINANCIAL POSITION(*)	(8,105)	(7,838)
Medium/long-term financial payables	(10,320)	(8,881)
Short-term financial payables	(4,712)	(4,637)
Cash and cash equivalents	6,927	5,681
H) TOTAL HEDGES	(29,505)	(27,633)

(*) Including the fair value of interest rate hedging derivatives receivable of € 0.26M classified as financial fixed assets (pursuant to OIC 32 No. 28b)

(National accounting standards + IAS 17)

Consolidated Cash Flow Statement

	2022	2021
	€/000	€/000
Operating profit [EBIT]	2,714	2,285
Tax effect	(618)	(358)
Change in funds	(143)	(35)
Provisions and write-downs	4,843	4,869
Income cash flow	6,796	6,761
Changes in working capital
Inventories	(1,887)	(4,448)
Trade receivables	(486)	(1,343)
Other receivables	588	(381)
Trade payables	(831)	2,645
Other payables	(561)	279
Changes in working capital	(3,178)	(3,248)
Operating cash flow (Free cash
flow)	3,618	3,513
Net tangible & intangible investments	(3,118)	(1,352)
Other fixed assets changes	101	(172)
Financial value adjustments	50	(106)
Cash flow from investing activity	(2,968)	(1,629)
Financial charges/income	(184)	(231)
Share capital increases (/decreases)	0	0
Other Equity changes	(734)	(239)
Cash flow from financial activities	(918)	(470)
Net cash flow	(267)	1,414
Start-of-period cash or (exposure)	(7,838)	(9,252)
End-of-period cash or (exposure) (*)	(8,105)	(7,838)
Net cash increase (decrease)	(267)	1,414

(National accounting standards + IAS 17)

Focus on family and management Buy-out

During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi.

Disclaimer

Disclaimer
Privacy	The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced without the written consent of Marzocchi Pompe S.p.A., either wholly or partially. It is therefore explicitly agreed that, by accepting this presentation, the recipient implicitly gives his consent to be bound by the limitations it contains.
	If the recipient at any time disagreed with this constraint, he would kindly and immediately return the document to Marzocchi Pompe S.p.A
Information	The document does not represent in its entirety neither Marzocchi Pompe S.p.A. nor the project that Marzocchi Pompe S.p.A. aims to achieve and, therefore, there may be some omissions concerning information related to it. Marzocchi Pompe S.p.A. is not obliged to provide the recipient with any updates or additions to the document, even if it contains errors, omissions or inaccuracies.
	The document was produced with due care and diligence; nevertheless, Marzocchi Pompe S.p.A. gives no warranty as to both the completeness, accuracy and correctness of the information and the forecasts or opinions expressed therein. Some parts of the document contain statements which are long-term forecasts, which represent then estimates subject to risks and uncertainties and, therefore, may differ, even substantially, from any future results.
	Neither Marzocchi Pompe S.p.A. nor its employees assume responsibility for the content of the document, even in cases where the recipient may suffer, even implicitly, any damages or losses caused by the omission of information, data and analysis.
General terms &	The document has been prepared by the management of Marzocchi Pompe S.p.A
Conditions	The document is not to be construed as an offer or solicitation to buy or subscribe shares issued by Marzocchi Pompe S.p.A. or the respective managers, directors, employees or agents. It is agreed that, if you were to make an offer or invitation to purchase or subscribe shares or related financial instruments issued by Marzocchi Pompe S.p.A., the same would be carried out in compliance with the applicable regulations and with the use, when applicable, of an admission document.
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CONTACTS

Marzocchi Pompe S.p.A. ir@marzocchipompe.com

Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D'Antonio francesco.dantonio@integraesim.it

Diego Carmignani diego.carmignani@integraesim.it

CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cdr-communication.it Martina Zuccherini, Media Relations martina.zuccherini@cdr-communication.it