Elica

Investor Presentation • Feb 13, 2024

Q4 & FY 2023 Preliminary Results ANALYSTS PRESENTATION

TUESDAY FEBRUARY 13TH, 2024

AGENDA

FY 2023 RESULTS HIGHLIGHTS

NET SALES 473,2 M€ YoY Change -75,4 M€ -13,7% (organic: -12,8%) EBIT ADJ 24,3 M€ 5,1% YoY Change -8,8 M€ -0,9 pts NFP (41,3) M€ Leverage: ~ 0,9 YoY Change -11 M€

• Cooking: Negative industry demand for the second year in a row, combined with high promotional activity, a slowdown in the real estate sector and reduced consumer purchasing power, resulted in a negative product mix.
• Motors: A year marked by a two-speed sales trend, led by the significant slowdown in the heating sector that began at the end of the first half of the year.
• Margins protected through effective cost management and flexibility of new production footprint in Europe

▪ Net Financial Position remains solid to support strategic investments and shareholders return.

Q4 2023 RESULTS

HIGHLIGHTS

NET SALES 113,0 M€

YoY Change -16,5 M€ -12,7% (organic: -11,0%)

YoY Change -11 M€

EBIT ADJ	YoY Change
4,9 M€	-2,6 M€
4,3%	-1,4 pts

NFP (41,3) M€ Leverage: ~ 0,9

• Q4 results improved on a sequential basis (+7%) compared to Q3 2023. Growth in the North American region in both OEM and Own Brand cooking compared to LY, the latter driven by the new distribution strategy implemented in the region.
• Intensified promotional activities and a more aggressive business strategy, combined with a negative product mix, created pressure on margins.

▪ Strong inventory reduction delivered (~20M€ vs Q3)

4

EMEA - COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data Change % vs LY

-14,0%

-14,0%

FY 2015 - 2023 HOODS SELL OUT VOLUMES TREND HOODS MARKET EU19 (excl. Russia)

Industry's higher promotional activity and reduced consumer purchasing power….……driving negative price/mix 2022- 2023 AVERAGE PRICE TREND IN EUROPE (Excl. Russia)

NORTH AMERICA – VENTILATION INDUSTRY UNIT SHIPMENTS

FY 2023

20,0% 30,0% 40,0%

Volume Data Change % vs LY

HEATING SECTOR MARKET TREND - BOILERS

SALES KEY DRIVERS

• Cooking: despite persistent weakness in market demand compared to last year, positive organic growth in NAR's OEM and Own Brand business, thanks to the new distribution strategy implemented in the region.
• Motors: Heating change in trend started in the 3rd quarter, also had a negative impact in the 4th quarter, due to the change in incentive regulations and the effect of the announcement of the legislation, along with the OEM customer destocking measures.

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

COOKING SALES BY BRAND

FY 2022	177,4	245,4	422,8
Currency	-0,3 -0,2%	-5,1 -2,1%	-5,5 -1,3%
ORGANIC Growth	-33,8 -19,0%	-17,9 -7,3%	-57,1 -12,2%
YoY Change	-34,1 -19,2%	-23,1 -9,4%	-57,1 -13,5%
FY 2023	143,4	222,3	365,7

MARGINS & KEY RESULT DRIVERS

ADJ GROUP NET PROFIT 1,3 5,0 (73,5)% % NET SALES 1,2% 3,9% -270 bps

	Q4		FY
€M	2023	2022	% VAR	2023	2022	% VAR
NET SALES	113,0	129,5	(12,8)%	473,2	548,6	(13,7)%
ADJ EBITDA	10,6	13,3	(20,2)%	48,1	56,6	(15,0)%
% NET SALES	9,4%	10,3%	-90 bps	10,2%	10,3%	-20 bps
ADJ EBIT	4,9	7,4	(34,3)%	24,3	33,0	(26,5)%
% NET SALES	4,3%	5,7%	-140 bps	5,1%	6,0%	-90 bps
NRI	(1,4)	(2,3)	35,7%	(2,7)	(5,7)	52,1%
EBIT	3,4	5,2	(33,7)%	21,5	27,3	(21,2)%
% NET SALES	3,0%	4,0%	-100 bps	4,6%	5,0%	-40 bps
PBT	1,3	3,9	(66,0)%	15,1	25,9	(41,4)%
% NET SALES	1,2%	3,0%	-180 bps	3,2%	4,7%	-150 bps
NET PROFIT	0,6	3,7	(83,3)%	11,3	18,2	(37,9)%
% NET SALES	0,5%	2,9%	-230 bps	2,4%	3,3%	-90 bps
MINORITIES	0,4	0,4	(0,2)%	1,5	1,6	(4,8)%
GROUP NET PROFIT	0,2	3,3	(93,5)%	9,8	16,6	(41,0)%
% NET SALES	0,2%	2,6%	-240 bps	2,1%	3,0%	-100 bps

CHANGES vs. PRIOR YEAR

	Q4	FY
VOLUME	-	--
PRICE / MIX	--	-
RAW MATERIAL INFLATION	+	+
COST TAKEOUT	+	+
CURRENCY	-	-
D&A	-	-
ADJ EBIT	-2,5	-8,8
NRI	++	++
FINANCIAL COSTS	-	-
COMBINED TAX RATE	--	+
NET PROFIT	-3,1	-6,9

COST TAKEOUT AND PROJECT EXECUTION TO DEFEND MARGINS IN A NEGATIVE INDUSTRY MARKET

11,9 21,0 -43,2% 2,5% 3,8% -130 bps

We Have Taken Proactive actions maximizing cash conversion

Reduced Inventory value by 10% vs. Last year

Optimized investments in key strategic initiatives

FY 2023 – NET FINANCIAL POSITION

€M	FY 2023	FY 2022	VAR
OPENING NFP	43 9 ,	35 1 ,	(8 8) ,
IFRS16 EFFECT	14 0 ,	12 4 ,	1 6 ,
OPENING NFP IFRS NET of 16	29 9 ,	22 7 ,	(7 2) ,
OPERATING CASH FLOW	37 6 ,	63 8 ,	(26 2) ,
(*) CAPEX	(16 1) ,	(23 3) ,	2 7 ,
TAXES	(2 7) ,	(6 5) ,	3 8 ,
OPERATING FCF	18 8 ,	34 1 ,	(15 2) ,
% SALES	4 0% ,	6 2% ,
Buy Back	(1 2) ,	(1 7) ,	0 5 ,
Industrial Footprint Cash-out	(3 5) ,	(11 8) ,	8 3 ,
M&A Cash Out	(7 0) ,	(13 1) ,	6 1 ,
Dividend Financial & Items	(11 1) ,	(7 8) ,	(3 3) ,
Other NRI	(7 5) ,	(6 8) ,	(0 7) ,
CLOSING NFP NET of IFRS 16	41 3 ,	29 9 ,	(11 4) ,
LEVERAGE(NFP/EBITDA)	0 9 ,	0 6 ,

COMMENTS

▪ Leverage under control despite Sales drop, Margin reduction and Cash-out for 16M€:

▪	EU Manufacturing footprint relocation	~2,7M€
▪	M&A (Last tranche EMC):	~7,0M€
▪	Shares Buyback:	~1,2M€
▪	Elica Dividend	~5,0M€

• Further CAPEX optimization (3,3% on Sales vs 4,2% LY)
• Q4 Strong Inventory reduction ~ 20M€

3 YEARS OF TURNAROUND IN A DIFFICULT SCENARIO …

2021-2023: execution of a 3 years plan focused on competitiveness & margins improvement, while implementing long term growth initiatives in product & distribution …

… in a dramatic market disruption scenario since H2 2022, deepened by geopolitical tensions and restrictive monetary policies to fight inflation

… DELIVERED A STRONGER COMPANY

Delivering in 3 years the highest performance in Elica history

	RESULTS

Numbers Talks:

€M	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
NET SALES	472 4 ,	480 0 ,	452 6 ,	541 3 ,	548 6 ,	473 0 ,
ADJ EBITDA	40 0 ,	45 0 ,	42 2 ,	57 1 ,	56 6 ,	48 1 ,
% NET SALES	8,5%	9,4%	9,3%	10,5%	10,3%	10,2%
ADJ EBIT	19 8 ,	19 6 ,	15 9 ,	32 3 ,	33 0 ,	24 3 ,
% NET SALES	4,2%	4,1%	3,5%	6,0%	6,0%	5,1%
GROUP NET PROFIT	-1 0 ,	3 1 ,	-1 8 ,	12 1 ,	16 6 ,	9 8 ,
% NET SALES	-0,2%	0,6%	-0,4%	2,2%	3,0%	2,1%

… WITH A NEW SET OF WEAPONS

ELICA RUNS TOGETHER WITH DUCATI CORSE: SPONSORSHIP SIGNED FOR 2024 MOTOGP CHAMPIONSHIP

24

2024 EXPECTATIONS

	H1	H2	COMMENTS
DEMAND	Negative	Neutral	▪ Still difficult market environment especially in the heating sector
PRICE/MIX	Negative	Negative	▪ High promotional activity and product mix headwinds
INFLATION	Positive	Positive	▪ Slightly positive net cost saving: negative labour inflation offset by raw materials tailwinds

Focus on REVENUE GROWTH: cooking transformation, AWARENESS and SALES SUPPORT to boost product innovation and a wider distribution network

• Focus on REVENUE GROWTH:
  • COOKING Priorities: Defend/Grow Market Shares, phase-in Elica new complete product range, new Elica brand strategy ready to be deployed, phase-in new OEM Customers
  • MOTOR Priorities: Growth market share, Heat-Pumps, Hydrogen
• FOCUS ON COST EFFICIENCY will continue without compromising LONG-TERM GROWTH INITIATIVES
• NET FINANCIAL POSITION UNDER CONTROL to support strategic investments and M&A
• KEEP THE FOCUS ON SHAREHOLDER'S RETURN

Q4 CONSOLIDATED INCOME STATEMENT

€M	4Q 23	4Q 22	%
Net Sales	113.0	129.5	-12.8%
EBITDA Adj	10.6	13.3	-20.2%
%	9.4%	10.3%	-87 bps
EBITDA	9.2	11.1	-16.4%
%	8.2%	8.5%	-35 bps
EBIT	3.4	5.2	-33.7%
%	3.0%	4.0%	-96 bps
Net Result	0.6	3.7	-83.3%
%	0.5%	2.9%	-232 bps
EPS* - Euro cents	0,39	5.32	-92.6%

²⁸ (*) 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 23	FY 22	%
Net Sales	473.2	548.6	-13.7%
EBITDA Adj	48.1	56.6	-15.0%
%	10.2%	10.3%	-15 bps
EBITDA	45.4	50.8	-10.7%
%	9.6%	9.3%	33 bps
EBIT	21.5	27.3	-21.2%
%	4.6%	5.0%	-43 bps
Net Result	11.3	18.2	-37.9%
%	2.4%	3.3%	-93 bps
EPS* – Euro cents	15.74	26.47	-40.5%

²⁹ (*) 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	FY 23	FY 22	△
Trade receivables	26.7	48.5	(21.8)
% on annualized sales	5.6%	8.8%	(320) bps
nventories	90.9	101.5	(10.6)
% on annualized sales	19.2%	18.5%	70 bps
Trade payables	(107.1)	(139.6)	32.5
% on annualized sales	(22.6)%	(25.4)%	280 bps
Managerial Working Capital	10.5	10.4	0.2
% on annualized sales	2,2%	1.9%	30 bps
Short term assets & liabilities	0.2	(12.6)	12.8
% on annualized sales	0.0%	(2.3)%	230 bps
Net Working Capital	10.8	(2.2)	13.0
% on annualized sales	2.3%	(0.4)%	270 bps

CONSOLIDATED CASH FLOW

EM	FY 23	FY 22
Operating Cash Flow	29.5	42.7
Capex (*)	(16.1)	(23.3)
Cash Flow from Financial Activities	(24.3)	(26.4)
A Net Financial Position	(10.9)	(6.9)

CONSOLIDATED B/S

	FY 23	FY 22		FY 23	FY 22
Net Operating Fixed Assets	187.3	181.2	Net Financial Position (*)	53.4	43.9
Net Working Capital	10.8	(2.2)	Group Equity	140.9	132.5
			Minorities	5.6	5.4
Net Financial Assets	1.9	2.9	Total Shareholders' Equity	146.5	138.0
Net Capital Employed	199.9	181.8	Total Sources	199.9	181.8

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI

€M	2023		2022
	Q4	FY	Q4	FY
PATENTS AGREEMENT	---	---	---	-3,2
RESTRUCTURING SG&A	0,6	1,5	1,2	2,2
INDUSTRIAL PLAN	0,1	0,4	0,5	6,2
OTHERS	0,6	0,8	0,5	0,5
TOT NRI	1,4	2,7	2,3	5,7

MINORITIES

€M	2023		2022
	MINORTY SHARES	Q4	FY	MINORTY SHARES	Q4	FY
ARIAFINA	49,0%	0,4	1,5	49,0%	0,4	1,6
TOT MINORITIES		0,4	1,5		0,4	1,6

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

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

▪ ARIAFINA (Japan) performance in line with 2022