Marzocchi Pompe

Investor Presentation • Apr 11, 2022

2021 Results Presentation

Paris, 11 April 2022

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.

• Company at a Glance
• 2021 Results & Outlook
• Achievements
• Market & Competitive Positioning
• Appendix
  • Business Overview

Marzocchi Pompe at a Glance: leader in high-performance products

	Marzocchi Pompe at a Glance: leader in high-performance 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 Predosa and Casalecchio di Reno, through an extremely	known for its high performance and great at satisfying the customer demand for high Pompe» is entirely carried out in Italy, in two verticalized process that allows to keep the	reliability, covering most of the performance products. locations nearby Bologna: Zola product quality under control.
Main Consolidated Financials	€/000 2018 2019 2020 2021 Net Sales 42.719 39.171 34.143 40.538 EBITDA 7.516 5.422 4.129 7.153 EBITDA Margin 17,6% 14,4% 12,2% 16,4% Net Income 2.926 203 229 1.591 Net Equity 10.984 18.676 18.444 19.796 Net Financial Debt 19.217 12.535 9.252 7.838 • Over 1,0 mln pumps produced • 2021 KPI More than 800 active clients • Average employees number: 271 Calculated on Revenue from production and sales (Sales Revenues + WIP), in 2019 net of the take or pay clause effect on automotive sales, not applicable in subsequent years	FY 2021 Revenues by Business Line 18,6% 36,3% 24,0% 21,1% Sales Network Automotive Industrial Mobile	FY 2021 Revenues by geographic area 0,30% 17,1% 30,0% 27,2% 25,5% AMERICA EUROPE ITALY 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 injection machines (Industrial) • to develop innovative products for the Automotive	its capacity and improve efficiency consolidating its position in the reference (Core Business) applications such as the market, as witnessed by the important award	market forklift trucks (Mobile) and plastic from a leading world player

2021 Results

NET SALES UP 18.8% AT EURO 40.5 MLN MAINLY DRIVEN BY CORE BUSINESS +33.5%

THE CORE BUSINESS SALES JUMPED TO EURO 32.0 MLN (+33.5%) BENEFITING FROM THE RECOVERY TREND ALREADY VISIBLE IN PAST SEMESTERS, ON THE

OTHER HAND THE AUTOMOTIVE SALES POSTED A 16% DECREASE TO EURO 8.6 MLN ESSENTIALLY DUE TO THE WORLDWIDE CHIP SHORTAGE. EBITDA MARGIN ROSE TO 16.4% (vs 12.2% in 2020), CLOSE TO ALL-TIME HIGH OF 2018 (17.6%), THANKS TO SALES GROWTH & CONSTANTLY IMPROVING OPERATING EFFICIENCY

MARZOCCHI WAS ABLE TO INCREASE SELLING PRICES TO OFFSET THE RISING RAW MATERIAL AND TRASPORT COSTS: CORE BUSINESS PRICES WERE UPLIFTED TWICE THROUGHOUT 2021 (THUS BENEFITING ALSO 2022), WHEREAS IN AUTOMOTIVE AUTOMATIC COST-TO-PRICE ADJUSTMENTS OPERATE.

NET FINANCIAL DEBT FURTHER DECREASED TO EURO 7.8 MLN, DOWN 8% VS. H1 2021 AND 15.3% VS. EURO 9.3 MLN IN 2020, THANKS TO PROFIT GROWTH & PERSISTENTLY HEALTHY CASH GENERATION DESPITE WORKING CAPITAL REQUIREMENTS' PHYSIOLOGICAL GROWTH, MARZOCCHI POMPE BOASTS A VERY TIGHT CONTROL ON CASH MANAGEMENT.

MARZOCCHI POMPE'S "IN-HOUSE" MANAGEMENT OF KEY PRODUCTION PROCESSES TOGETHER WITH ITS "MAKE" CHOICE REGARDING CORE COMPONENTS DO PREVENT ANY BUSINESS INTURRUPTION KEY SUCCESS FACTORS FOR MARZOCCHI GROWTH: 1) RELENTLESS PRODUCT INNOVATION AS WITNESSED BY THE NEWLY LAUNCHED "FTP" LOW PRESSURE PUMP ("ELIKA" FAMILY) THAT OPENS NEW MARKETS), AND 2) OPERATING FLEXIBILITY ALLOWING CUSTOMIZED HIGH-PERFORMANCE PRODUCTS.

Sales Revenue and EBITDA (€m) Source: consolidated financial statements 16.4%. Margin+19% +73% 34,1 40,5 4,1 7,2 0 5 10 15 20 25 30 35 40 45 2020 2021 Sales Revenue EBITDA 12.2% Margin

* EBITDA Margin based on Sales Revenue + WIP

• Revenues jumped to Euro 40.5 mln in 2021, recording a healthy 19% growth thus fully
• recovering the pre-Covid levels • Growth was driven by the Core Business which topped the all-time high of Euro 32 mln (+33.5%), while Automotive sales were down 16% (Euro 8.6 mln) due to chip shortage worldwide • EBITDA nearly doubled to Euro 7.1 mln (vs. Euro 4.1 mln in 2020), with the EBITDA margin at 16.4% (vs. 12.2% in 2020), not far from the all-time high

pre-Covid levels (17.6% in 2018) • Aside the strong sales increase, the outstanding growth in profitability benefited on the one hand from Marzocchi relentless drive for operational efficiency, which gained even more momentum during the pandemic, and on the other hand from the growing importance of the "Elika" family, which is a major driver for sales acceleration

Revenue Breakdown per Business Line (%) • Revenues by Core market segments (Sales Network, Industrial and Mobile), accounting for nearly three quarters of Total Revenues, reached the all-time high of Euro 32 mln vs. Euro 24 mln in 2020 thanks to the economic recovery gaining pace on a global basis which strongly pushed industry demand • Weight of Automotive sales slid to 21% of Total Revenues from 30% in 2020 due to the chip shortage mainly affecting the Asian suppliers that is slowing production in the automotive sector at worldwide level, although

demand is expecting to pick-up in the coming months

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

• compared to a loss of Euro 1.1 mln in 2020, even though impacted by depreciation and amortisation
• Adjusted EBIT, calculated net of revaluation depreciation and amortisation resulting from the merger from LBO, amounting to Euro 1.1 mln in the year, equalled Euro 3.4 mln compared to Euro 0.2 mln in 2020 • In 2021 Marzocchi reported a Net Profit of Euro 1.6 mln, compared to Euro 0.2 mln in
• 2020

Net Financial Debt further down thanks to healthy cash generation

- Net Financial Debt further improved to Euro 7.8 mln at end-2021, down 15% from Euro 9.3 mln at end-2020, despite the physiological growth in working capital linked to the strong sales growth, mostly affecting Inventories to offset rising raw material & transport costs, further demonstrating the Group's proven equity and financial solidity, as well as its great capability to generate cash flow • In detail, the optimal management of Working Capital and the regular management of orders and payments' terms allowed for a considerable cash generation of Euro 1.4 mln, reflected in the Net Financial Position improvement

- ON 30TH MARCH 2022 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 12 CENTS PER SHARE (DOUBLED FROM EURO 6 CENTS PER SHARE IN 2020), FOR A TOTAL DIVIDEND AMOUNT OF EURO 784.650. IF THE SHAREHOLDERS' MEETING DUE ON 29TH APRIL 2021 APPROVES ITS DISTRIBUTION, THE DIVIDEND WILL BE PAID AS FROM 11TH MAY 2022, AFTER DETACHMENT OF THE COUPON ON 9TH MAY 2022 THE DATE OF ENTITLEMENT TO PAYMENT (RECORD DATE) IS SET AT 10TH MAY 2022

Achievements

- 2021 SAW THE FULL ECONOMIC RECOVERY FROM THE COVID-19 PANDEMIA WORLDWIDE: MARZOCCHI RECORDED VERY STRONG ORDERS IN ITS CORE BUSINESS, WHILE AUTOMOTIVE GROWTH WAS PARTIALLY HALTED BY THE CHIP SHORTAGE COMING FROM THE ASIAN SUPPLIERS, ALTHOUGH DEMAND IS EXPECTED TO TURN AROUND BY YEAR-END SUCH A BOUYANT MARKET SCENARIO ALLOWED MARZOCCHI TO RETURN TO PRE-COVID SALES LEVEL AND PROFIT MARGINS NOT FAR FROM THE ALL-TIME HIGH OF 2018, WITNESSING THE STRENGHT AND RESILIENCE OF ITS BUSINESS MODEL MARZOCCHI TOP PERFORMING PRODUCT RANGE HAD BEEN EMPOWERED BY THE LAUNCH OF THE NEW "FTP" ELIKA LINE IN SEPTEMBER 2021, WHICH OPENED NEW MARKETS AND WHOSE BENEFICIARY EFFECTS WILL FULLY DISPLAY FROM 2022 THE ROBUST ORDER BACKLOG COUPLED WITH THE PRODUCTION FLEXIBILITY AND AN ENVIABLE FINANCIAL SOLIDITY WILL LIKELY ALLOW MARZOCCHI TO CONTINUE GROWTH IN COMING YEARS

-

- RELENTLESS EFFORTS TO DEVELOP NEW PRODUCTS AND PARTNERSHIP WITH TOP CLIENTS FOR CUSTOMIZED HIGH-PERFORMING LINES ARE EMPOWERING MARZOCCHI REPUTATION AND LEADERSHIP POSITION ON THE INTERNATIONAL MARKETS, AS WITNESSED BY RECENT RENEWAL UP TO 2034 OF THE DEAL WITH A WORLD LEADER AUTOMOTIVE PLAYER: THIS CONTRACT FORESEES 1.5 MILLION PUMPS IN THE 2023 – 2034 PERIOD. 2022 IS ALSO SEEING THE RETURN TO COMMERCIAL EVENTS IN PRESENCE: MARZOCCHI WILL SEIZE ALL THE OPPORTUNITIES THAT MAY ARISE FROM DIRECT MARKETING CONTACT WITH EXISTING AND PERSPECTIVE CUSTOMERS

ESG Achievements confirm strong commitment towards Sustainability

• Sustainability Report – Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, with the aim of strengthening also this respect to enhance value creation • Marzocchi Certifications • ESG Score by Environmental Policies Ethic Code 1.35 1.10 1.38 1.10 4.93 = BBB

• 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 Physical and Biometric Security of last generation Cynet tasks are:
• the: Attack Prevention & Detection Response Orchestration

H24x7x365 monitoring of company networks

Monitoring & Control

IN 2019 THE NEW ELIKA DEPARTMENT HAD BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EURO IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH 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 ALSO OPENS UP NEW MARKETS AT WAS AND THAT WAS PRESENTED IN SEPTEMBER AT THE "IVT EXPO"

- EFFICIENCY

-

"We are very pleased to have completed this first and important piece of our business plan. In 2019 we have already invested over 1 mlneuros, 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 thanks to the proceeds of the listing, in the second half of the year we will continue with further investments, for about half a mlneuros, 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 Köln – Industrial Vehicles Symposium Stand 1100 GFPS Napoli – Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table bauma München – World Mobile Exhibition EIMA Bologna – Agricultural Exhibition

bauma China – Mobile Exhibition

Hall A4 Stand 414

Stand to be announced

Stand to be announced

2022 Investor Relations Forthcoming Events

	What's Next: …and Constantly in touch with the Market leaders
	2022 Investor Relations Forthcoming Events
1st April	FY 2021 Results Presentation (Videoconference)
11th April	Road Show in Paris
24th May	Euronext Growth Conference (Virtual)
29th November	Mid & Small Conference in Milan

Market & Competitive Positioning

Hydraulic market – geographic breakdown Hydraulic end - use market 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 billions in 2000, to around Euro 41.5 billions 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: 10th 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
Source: CETOP 3– ISC Statistics 2020	Notes: World and regional aggregates consist of the 21 countries included within the analysis Source: Oxford Economics –	National Fluid Power Association, Forecast of End-Use Markets-					Winter 2021
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 (2): ISC - International Statistics Committee project has the objective of providing comparable information on Fluid Power markets in Europe, USA and Asia. 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,

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.

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 9.4% of sales and the top 10 representing 25.3%. The Automotive sector, on the other hand, has fewer clients making up for most of its' sales. In total, the company counts 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 78.9% and 21.1% of total sales, respectively) according to the financial year's consolidated data on 31st December ²⁰²¹

	Overview weight %	clients1 top
	Industrial & Mobile2		Automotive
	Revenues 2021	%	Revenues 2021	%
Top 3	3.00 mln	9.4%	8,57 mln	100,0%
		25.3%	8,57 mln	100,0%
Top 10	8.08 mln
Total	31.97 mln	100.0%	8,57 mln	100,0%

% 93% of automotive' s revenues are made from sales to only one client, with whom Marzocchi Pompe recently renewed a multi-year contract, expiring on 31st December 2022, for the period 2023 - 2034. The contract guarantees the supply of micro-pumps by MP, with the following clauses: - Pre-established price, mainly based on volumes ordered - Price-adjustment according to previously established mechanisms, based on current raw material 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 experiencing growth	• 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)
	• Evidence of upward trend of Italian hydraulic market in the 2009-2018 period, with a decrease of 15.2% in production from 2019 to 2020 due to the Covid-19 pandemic
Wide range of product applications	• Countless possibilities in terms of MP's pump and motor applications, thanks to the Company's versatility and product personalization options
Business model geared	• Production process relies on high-tech machinery and extensive use of automation
towards innovation	• Internalization of strategic production process, guaranteeing constant monitoring and high-quality standards • Continuous product innovation, as it can be seen with ELIKA, covered by two patents, which stands out for its outstanding technological level that allows low noise emissions and low pulsations, but high efficiency
High profitability and	• EBITDA margin at 16.4% in 2021, strongly improved vs. 2020 (12.2%) and 2019 (14.4%), and close to the 16.9% for the period 2016-2018 (pre-Covid levels)
cash flow generation	• High net cash flow (Euro 1.4 mlnin 2021) allowing for further decrease in Net Debt with a comfortable NFP/EBITDA of 1.1x
Esteemed execution	• Renowned production capability for customized products
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 1st January 2022 the workforce consists of 271 resources (of which 254 are permanent employees), with an heterogeneous background of professional skills that strengthens the efficiency of the work team. The

Marco Minghetti

History

€/000	31-Dec-21		31-Dec-20
Sales Revenue	40,538	100,00%	34,143	100,00%
WIP changes	3.044		-307
Revenue from production and sales	43,582		33,836
Other revenue	1.230		916
PRODUCTION VALUE	44,812		34,752
Raw materials consumption	-10,716	-24.60%	-7,931	-23.40%
Service costs	-12,005	-27.50%	-9,621	-28.40%
Costs for use of third-party goods	-316	-0.70%	-307	-0.90%
Various operating costs	-436	-1.00%	-378	-110%
VALUE ADDED	21,339	48.96%	16,516	48.81%
Staff costs	-14,185	-32.50%	-12,387	-36.60%
EBITDA	7,153	16.41%	4,129	12.20%
Depreciation, amortisations and write-downs	-4,869	-11.20%	-5,229	-15.50%
OPERATING PROFIT (EBIT)	2,285	5.24%	-1,100	-3.30%
Non-recurring income and charges	0	0.00%	0	0.00%
Financial income and charges	-231	-0.50%	-510	-1.50%
Financial value adjustments	-106	-0.20%	-24	-0.10%
EARNINGS BEFORE TAX	1,948	4.47%	-1,634	-4.80%
Income tax for the year	-358 1,591	-0.80% 3.65%	1,863 229	5.51% 0.68%
NET INCOME

Consolidated Balance Sheet

€/000	31-Dec-21	31-Dec-20
A) NET FIXED ASSETS	19,081	22,426
Intangible fixed assets	1,306	1,502
Tangible fixed assets	16,391	19,712
Financial fixed assets	1,384	1,212
B) NET WORKING CAPITAL	10,105	6,901
Inventories	12,121	7,673
Advances from customers	-11	-17
Trade receivables	7,703	6,365
Other receivables	2,680	2,299
Trade payables	-7,503	-4,858
Other payables	-3,628	-2,494
Provisions for risks and charges	-1,570	-1,526
Other assets/liabilities	313	-542
C) GROSS INVESTED CAPITAL	29,186	29,327
D) EMPLOYEE SEVERANCE PAY	-1,552	-1,631
E) NET INVESTED CAPITAL	27,633	27,696
covered by
	-19,796	-18,444
F) EQUITY
G) NET FINANCIAL POSITION	-7,838	-9,252
Medium/long-term financial payables	-8,881	-11,705
Short-term financial payables	-4,637	-5,191
Cash and cash equivalents H) TOTAL HEDGES	5,681 -27,633	7,644 -27,696

€/000 2021 2020
Operating profit [EBIT] 2,285 -1,100
Tax effect -358 1,863
Change in funds -35 -1,295
Provisions and write-downs 4,869 5,229
Income cash flow 6,761 4,697
Changes in working capital
Inventories -4,448 446
Trade receivables -1,343 1,497
Other receivables -381 -936
Trade payables 2,645 303
Other payables 279 -179
Changes in working capital -3,248 1,131
Operating cash flow (Free cash flow) 3,513 5,829
Net tangible & intangible investments -1,352 -1,574
Change other fixed assets -172 24
Financial value adjustments -106 -24
Cash flow from investing activity -1,629 -1,574
Financial charges/income -231 -510
Share capital increases (/decreases) 0
Other Equity changes -239 -461
Cash flow from financial activities -470 -971
Net cash flow 1,414 3,283
Start-of-period cash or (exposure) -9,252 -12,535
End-of-period cash or (exposure) -7,838 -9,252
Net cash increase (decrease) 1,414 3,283

Focus on 2018 LBO

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.
	40

CONTACTS

Marzocchi Pompe S.p.A.

ir@marzocchipompe.com

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

Luca Comi luca.comi@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