Elica

Investor Presentation • May 5, 2021

Q1 Results 2021 ANALYSTS PRESENTATION

WEDNESDAY MAY 5TH, 2021

AGENDA

EXECUTIVE SUMMARY Q1 2021 HIGHLIGHTS

EXECUTIVE SUMMARY Q1 2021 HIGHLIGHTS

▪

• Industry : Strong Q1 in EMEA, driven by European dynamics. (*)
• Revenues growing above Market: +23,7% vs Q1 2020 (+27,3% Organic)
• Products: NikolaTesla, with the new fit range, driving sales boost in high-end segment (~ +60% YoY in Q1)
• Margins: Revenues growth and cost containment delivering:
  • 14,4 M€ Adj. EBITDA (10,5% on NS) vs. 10,9 M€ 2020 (9,9% on NS) and
  • 8,5 M€ Adj. EBIT (6,2% on NS), vs. 4,3 M€ 2020 (3,9% on NS)
• NFP: Positive Operating Cash Flow as a result of strong earning and Capex stabilization.

INDUSTRY TREND

5

Q1|Q4 2020 & Q1 2021 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ Change % vs . Y-1

	Q1'20	H1 '20 Q1'21	H1 '20 Q4'20	Key evidence
Western Europe	(5.0%)	3.9%	4.0%	GENERAL REMARKS
Eastern Europe (incl. CIS)	(0.5%)	8.7%	6.6%
Europe	(2.7%)	6.0%	5.0%	EMEA
EMEA	(2.5%)	5.3%	4.2%
North America	(1.5%)	2.0%	(0.5%)	recorded a strong quarter as a whole.
Latin America	1.6%	1.6%	(1.8%)	AMERICAS
AMERICAS	(0.2%)	1.8%	(1.0%)	lockdown measures and slowing down the expected rebound.
ASIA	(28.3)	30.5%	1.8%	ASIA
WORLD	(14.4%)	14.7%	2.1%

GENERAL REMARKS

Many economies especially in Europe are still subject to significant social distancing and economic activity restrictions in Q1 2021, however the global economic situation has improved although the recoveries are diverging across countries and sectors suggesting a K-shaped recovery. The general situation is improving as vaccine distribution accelerates.

EMEA

The second wave of the COVID—19 has had a significant impact on the economies of Germany and UK that register negative results due to local lockdowns and restrictions especially in the first two month of 2021. The positive Europe result is triggered mostly by the Eastern Europe robust growth. Markets across Europe, the Middle East and Africa recorded a strong quarter as a whole.

AMERICAS

U.S. market surged higher in Q1 2021 on the back of two overriding themes – greater than expected stimulus and vaccine progress. The resurgence of new daily COVID-19 cases at the beginning of 2021 led to every major Latin American economy reimposing lockdown measures and slowing down the expected rebound.

ASIA

China's economy expand notably in the first quarter, a growth figure inflated by the coronavirus-related crash in the year-ago period. Japan's economy shrinks due to a second state of emergency. Although Indian economic activity has rebounded, highfrequency indicators suggest that the recovery has been uneven so far.

SALES DYNAMICS

SALES KEY DRIVERS

• Q1 Confirmed robust growth (+27,3% organic) driven by Volume/Price-Mix. Positive also vs 2019 (+17%)
• Currencies (USD,INR,JPY) negatively affecting Revenues (-3,6%) but fully balanced @ Margins level

Q1
Change vs Y-1	€M €M	%
Vol/Price-Mix	30,3	27,3%
Currency	(4,0)	(3,6)%
Reported NS	137	23,7%

Q1 SALES DISTRIBUTION & DYNAMICS

• Q1: All geographies growing supported by positive demand, EMEA above the market in all channels.
• AMERICAS & ASIA: Strong operational performance partially offset by negative FX effect.
• COOKING: Double digit growth in both OWN Brands and OEM.
• MOTOR: Q1 persistent growth driven by positive market demand powered by Eco-bonus & New Projects.

OUR DESIGN, OUR DNA, our PASSION

KEY PRODUCT CATEGORIES PERFORMANCE

• NikolaTesla range reaching 11.5% of Cooking Sales, thanks to range expansion boost: Nikola Tesla Fit (60cm)
• Acceleration & Fast Growth in all Categories improving mix-up and margins.

€M

2021 ECONOMICS & FINANCIALS

14

MARGINS & KEY RESULT DRIVERS VS LY

€M	Q1		VAR			CHANGES vs. PRIOR YEAR
	2021	2020	€	%

CHANGES vs. PRIOR YEAR	01
VOLUME	+++
PRICE / MIX	+
RAW MATERIAL INFLATION
SG&A	+
CURRENCY
D&A	+
ADJ EBIT	4,2
NRI
FINANCIAL COSTS	+
COMBINED TAX RATE	+
NET PROFIT	2,1

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI MINORITIES

€M	Q1 2021	Q1 2020

€M	MINORTY SHARES	Q1 2021	Q1 2020	VAR
ELICA	5%	2	0	0
PB	74	1	7	5
INDIA	,	,	,	,
ARIAFINA	49	0	0	(0
	0%	4	5	1)
	,	,	,	,
AIRFORCE	40	0	0	0
	0%	1	0	1
	,	,	,	,
TOT MINORITIES		1 7 ,	1 1 ,	0 6 ,

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

• China assets write-off with no financial effect
• Corporate SG&A Re-sizing
• Former CEO No Competition Agreement
• ELICA PB INDIA: Delivering Record Result driven by Sales Growth (+46%) and Flexible Business Model.
• ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2020.

NET FINANCIAL POSITION

€M	I Q 2021	I Q 2020	VAR	COMMENTS
OPENING NFP	(60 3) ,	(56 8) ,	(3 4) ,
IFRS16 EFFECT	8 9 ,	9 7 ,
OPENING NFP of NET IFR16	(51 4) ,	(47 2) ,	(4 2) ,	target.
CASH OPERATING FLOW	5 3 ,	1 1 ,	4 1 ,
(*) CAPEX	(3 4) ,	(3 3) ,	( 1) ,
TAXES	(1 8) ,	(1 8) ,	( 0) ,
CF OPERATING	1 ,	(4 0) ,	4 1 ,
SALES %	0 0% ,	-0 8% ,	0 9% ,
DIVIDENDS & FINANCIAL ITEMS	(1 4) ,	(3 1) ,	1 8 ,
FX EFFECT	3 ,	(1 0) ,	1 4 ,
RESTRUCTURING COSTS	0 ,	0 ,	0 ,
OTHER NRI	1 0 ,	0 ,	1 0 ,
CLOSING NFP	(51 3) ,	(55 3) ,	4 0 ,
LEVERAGE	1 2 ,	1 3 ,

• Positive OPERATING CF result mainly driven by EBITDA Growth and CAPEX stabilization in line with target.
• Positive impact in cash out vs LY from Dividend (Ariafina) and Financial items (Putian).
• Positive impact vs LY for FX conversion of the Foreign Entities NFP (mainly MXP, INR and JPN ).
• Other NRI: 1st settlement of China Land Transfer.
• Closure Q1 aligned with Q4 2020 despite negative seasonality that historically affects the first quarter.

INCREASING OCF IN Q1: NFP BETTER THAN LY, LEVERAGE LARGELY BELOW NEW 100 M€ LOAN COVENANTS

CLOSING REMARKS & TAKE-AWAYS

18

CLOSING REMARKS

• Sales & Margins: Q1 Results continues to report a robust growth above the market trend.
• Price Mix: Strong Focus to carry on the Cost based Price Increase to mitigate the Component and Raw Materials inflationary.
• Maintaining strong focus on New Product and Strategic initiatives, with a strict control of CAPEX spending.
• Increasing Operating Cash generation driven by Margin growth.
• All «mid-term» strategic projects running in line with our expectations to deliver incremental growth, margins and cash generation.

Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS

Q1 CONSOLIDATED INCOME STATEMENT

€M	Q1 21	Q1 '20	%
Net Sales	137.0	110.8	23.7%
EBITDA Adj	14.4	10.9	31.4%
%	10.5%	9.9%	60 bps
EBITDA	13.5	10.9	23.2%
%	9.8%	9.9%	0 bps
EBIT	6.0	4.3	40.2%
%	4.4%	3.9%	50 bps
Net Result	4.1	2.0	103.9%
%	3.0%	1.8%	120 bps
EPS* - Euro cents	3.81	1.41	170.2%

²¹ (*) 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	Q1 '21	Q1 20	△
Trade receivables	97 4	62.1	35.3
% on annualized sales	17.8%	14.0%	380 bps
Inventories	80.0	72.3	7.7
% on annualized sales	14.6%	16.3%	(170 bps)
Trade payables	(133.0)	(108 1)	(24.9)
% on annualized sales	(24.3)%	(24.4)%	100 bps
Managerial Working Capital	44.4	26.3	18.1
% on annualized sales	8.1%	5.9%	220 bps
Short term assets & liabilities	(10.4)	(11.9)	1.5
% on annualized sales	(1.9)%	(2.7)%	80 bps
Net Working Capital	34.0	14.4	19.6
% on annualized sales	6.2%	3.2%	300 bps

CONSOLIDATED CASH FLOW

EM	Q1 '21	Q1 '20
Operating Cash Flow	4.5	(0.6)
Capex (*)	(3.4)	(3.3)
Cash Flow from Financing Activities	(1.4)	(3.1)
A Net Financial Position	(0.3)	(7.1)

CONSOLIDATED B/S

	2021	2020		2021	2020
Net Operating Fixed Assets	149.0	167.6	Net Financial Position (*)	60.2	66.0
Net Working Capital	34.0	14.4	Group Equity Minorities	107.0 18.8	101.3 13.5
Net Financial Assets	3.0	(1.2)	Total Shareholders' Equity	125.8	114.8
Net Capital Employed	186.0	180.8	Total Sources	186.0	180.8

DISCLAIMER

Investor Relations

Francesca Cocco – Lerxi Consulting – Investor Relations Tel: +39 (0)732 6104205 E-mail: investor-relations@elica.com

This presentation may contain forwards-looking information and statements about Elica S.p.A. and its Group.

Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance.

Although the management of Elica S.p.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Elica are cautioned that forward-looking information and statements are subject to various risk and uncertainties, many of which are difficult to predict and generally beyond the control of Elica S.p.A.; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements.

These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, Elica S.p.A. does not undertake any obligation to update any forward-looking information or statements.