Elica

Investor Presentation • Jul 27, 2023

H1 2023 Results ANALYSTS PRESENTATION

THURSDAY JULY 27TH, 2023

AGENDA

Q2 2023 RESULTS

HIGHLIGHTS

NET SALES 125,5 M€

YoY Change -20,7 M€ -14,1% (organic: -13,6%)

EBIT ADJ	YoY Change
7,5 M€	-2,1 M€
6,0%	-0,5 pts

NFP (36,8) M€ Leverage: ~ 0,8 YoY Change -6 M€

• Still challenging market scenario with a persisting soft demand in Cooking business. Sudden industry slowdown in Motors Heating products from May
• Sequential ongoing margins expansion (+80 bps QoQ) driven by:
  • Costs Containment
  • Flexibility of the new production footprint in EU
• Stable NFP despite revenues decline, focus on NWC management and Capex optimization

H1 2023 RESULTS

ELICA TURNAROUND PROCESS INDUSTRY TREND

Q1-Q4 '22 & Q1-Q2 '23 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ Change % vs Y-1

**SOURCE AHAM: DATA REFERS TO ALL COOKING PRODUCT RANGES but MICROWAVES, COVERING ≈ 40% OF THE MARKET

SALES DYNAMIC

7

SALES KEY DRIVERS

• Sales affected by volumes decline, as a result of the weaker market demand compared to last year mainly in the Emea Region.
• Pressure on sales mix due to lower consumer purchasing power
• Strong Promo Environment

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

COOKING SALES BY BRAND

226,5 H1 2022 H1 2023 192,6 -26,8 -7,1 M€ -15,0% OEM OWN BRAND

Net Sales

Net Sales

H1 2022	100,7	125,8	226,5
Currency	+0,5	-0,7	-0,1
	+0,5%	-0.5%	-0,1%
ORGANIC	-27,4	-6,4	-33,8
Growth	-27,2%	-5,1%	-14,9%
YoY	-26,8	-7,1	-33,9
Change	-26,7%	-5,6%	-15,0%
H1 2023	73,9	118,7	192,6

ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

	2023
€M	Q1	Q2	H1
NET SALES	129,0	125,5	254,5
ADJ EBITDA	12,6	13,5	26,1
% NET SALES	9,7%	10,8%	10,2%
ADJ EBIT	6,7	7,5	14,2
% NET SALES	5,2%	6,0%	5,6%
NRI	(0,6)	(0,4)	(1,0)
EBIT	6,0	7,1	13,2
% NET SALES	4,7%	5,7%	5,2%
PBT	5,0	5,9	10,9
% NET SALES	3,9%	4,7%	4,3%
NET PROFIT	3,8	4,7	8,5
% NET SALES	2,9%	3,8%	3,3%
MINORITIES	0,4	0,4	0,7
GROUP NET PROFIT	3,4	4,4	7,8
% NET SALES	2,6%	3,5%	3,1%
ADJ GROUP NET PROFIT	3,9	4,7	8,5
% NET SALES	3,0%	3,7%	3,4%

EBIT* MARGIN TREND BY QUARTER

*Excluding non recurring item

GROUP NET PROFIT TREND BY QUARTER

2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0%

-4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

SEQUENTIAL IMPROVEMENT IN Q2 DESPITE LOWER SALES THANKS TO STRONG FOCUS ON COST CONTAINMENT

0

5

10

15

MARGINS & KEY RESULT DRIVERS

	Q2			1H
€M	2023	2022	% VAR	2023	2022	% VAR
NET SALES	125,5	146,2	(14,1)%	254,5	290,2	(12,3)%
ADJ EBITDA	13,5	15,5	(12,7)%	26,1	30,4	(14,3)%
% NET SALES	10,8%	10,6%	18 bps	10,2%	10,5%	-24 bps
ADJ EBIT	7,5	9,6	(21,6)%	14,2	18,5	(23,6)%
% NET SALES	6,0%	6,5%	-60 bps	5,6%	6,4%	-80 bps
NRI	(0,4)	(1,1)	65,6%	(1,0)	(2,0)	49,8%
EBIT	7,1	8,5	(15,9)%	13,2	16,5	(20,4)%
% NET SALES	5,7%	5,8%	-12 bps	5,2%	5,7%	-53 bps
PBT	5,9	11,3	(47,8)%	10,9	19,0	(42,7)%
% NET SALES	4,7%	7,7%	-300 bps	4,3%	6,5%	-230 bps
NET PROFIT	4,7	7,7	(38,5)%	8,5	12,9	(34,2)%
% NET SALES	3,8%	5,3%	-150 bps	3,3%	4,5%	-111 bps
MINORITIES	0,4	0,2	(137,0)%	0,7	0,6	20,3%
GROUP NET PROFIT	4,4	7,6	(42,3)%	7,8	12,3	(36,9)%
% NET SALES	3,5%	5,2%	-170 bps	3,1%	4,2%	-120 bps
ADJ GROUP NET PROFIT	4,7	8,4	(44,6)%	8,5	13,8	-38,3%
% NET SALES	3,7%	5,8%	-200 bps	3,4%	4,8%	-140 bps

CHANGES vs. PRIOR YEAR

	Q2	1H
VOLUME	--	--
PRICE / MIX	-	+
RAW MATERIAL INFLATION	-	-
COST TAKEOUT	+	+
CURRENCY	-	-
D&A	-	-
ADJ EBIT	-2,1	-4,4
NRI	+	+
FINANCIAL COSTS	-	-
COMBINED TAX RATE	+	+
NET PROFIT	-3,0	-4,4

H1 EBITDA MARGIN PROTECTION (10,2% vs 10,5% LY) DESPITE SALES DROP

1H 2023 – NET FINANCIAL POSITION

€M	H1 2023	H2 2022	VAR
OPENING NFP	43 9 ,	35 1 ,	(8 8) ,
IFRS16 EFFECT	14 0 ,	12 4 ,	1 6 ,
OPENING NFP NET of IFR16	29 9 ,	22 7 ,	(7 2) ,
CASH OPERATING FLOW	16 7 ,	21 6 ,	(4 9) ,
(*) CAPEX	(6 8) ,	(8 4) ,	1 7 ,
TAXES	(1 2) ,	(4 9) ,	3 7 ,
FCF OPERATING	8 8 ,	8 3 ,	0 5 ,
SALES %	1 6% ,	1 5% ,
Buy Back	(0 6) ,	(1 0) ,	0 4 ,
Industrial Footprint Cash-out	(1 9) ,	(7 7) ,	5 8 ,
M&A Cash Out	(6 5) ,	(5 0) ,	(1 5) ,
Dividend & Financial Items	(5 7) ,	(5 0) ,	(0 7) ,
Other NRI	(0 9) ,	2 3 ,	(3 1) ,
CLOSING NFP of IFR16	36 8 ,	30 8 ,	(6 1) ,

LEVERAGE(NFP/EBITDA) 0,8 0,8

COMMENTS

• Strong management of operational FCF despite a critic market scenario:
• Stable Working Capital absorption vs LY thanks to inventories control and the implemented Supply Chain Finance Solution (structural impact on DPO)
• Operating CF generation @8,8M€ slightly better than LY to finance:

▪	EU Manufacturing footprint relocation :	~1,9M€
▪	M&A (Last tranche EMC):	~6,5M€
▪	Shares Buyback:	~0,6M€

CLOSING REMARKS

H1 2023 Takeaways :

• Persisting negative market demand and strong promotional environment
• Margin increase QoQ: solid fundamentals, low contribution from decreasing raw materials costs
• Cash generation/Leverage under control

Full Year Guidance:

• Revenues: ~ -8%
  • Cooking market demand not expected to improve YoY in H2
    • Priorities: Defend Market Shares and phase-in Elica new complete product range
  • Motors: heating customers in a destocking momentum
    • Priorities: Heat-Pumps (Q4), Hydrogen
• Operating Margin: ~ +10/20 bps vs LY
• Solid Net Financial Position, Leverage in line with LY

SOLID FUNDAMENTALS TOWARDS OUR MIDTERM STRATEGY

In the last 2 years, while we achieved record margins in a volatile and inflationary market environment, we have built our future

We are well-positioned to benefit from the demand recovery and achieve our mid-term profitability targets

ANNEX: FINANCIAL HIGHLIGHTS

18

Q2 CONSOLIDATED INCOME STATEMENT

€M	20 23	2Q 22	%
Net Sales	125.5	146.2	-14.1%
EBITDA Adj	13.5	15.5	-12.7%
%	10.8%	10.6%	18 bps
EBITDA	13.1	14.4	-8.6%
%	10.4%	9.8%	63 bps
EBIT	7.1	8.5	-15.9%
0%	5.7%	5.8%	-12 bps
Net Result	4.7	7.7	-38.5%
%	3.8%	5.3%	-150 bps
EPS* - Euro cents	6.99	12.04	-42.0%

¹⁹ (*) 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.

H1 CONSOLIDATED INCOME STATEMENT

€M	H1 23	H1 22	%
Net Sales	254.5	290.2	-12.3%
EBITDA Adj	26.1	30.4	-14.3%
%	10.2%	10.5%	-24 bps
EBITDA	25.1	28.4	-11.8%
%	9.8%	9.8%	-6 bps
EBIT	13.2	16.5	-20.4%
%	5.2%	5.7%	-53 bps
Net Result	8.5	12.9	-34.2%
%	3.3%	4.5%	-111 bps
EPS* - Euro cents	12.43	19.53	-36.4%

²⁰ (*) 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	H1 23	FY 22	△
Trade receivables	46.9	48.5	(1.6)
% on annualized sales	9.2%	8.8%	(40) bps
nventories	109.2	101.5	7.7
% on annualized sales	21.4%	18.5%	290 bps
Trade payables	(139.2)	(139.6)	0.4
% on annualized sales	(27.3)%	(25.4)%	(190) bps
Managerial Working Capital	16.9	10.4	6.5
% on annualized sales	3.3%	1.9%	140 bps
Short term assets & liabilities	(7.4)	(12.6)	5.2
% on annualized sales	(1.5)%	(2.3)%	80 bps
Net Working Capital	9.5	(2.2)	11.7
% on annualized sales	1.9%	(0.4)%	230 bps

CONSOLIDATED CASH FLOW

€M	H1 23	H1 22
Operating Cash Flow	13.1	10.6
Capex (*)	(6.8)	(8.4)
Cash Flow from Financial Activities	(12.9)	(10.9)
A Net Financial Position	(6.5)	(8.7)

CONSOLIDATED B/S

	H1 23	H1 22		H1 23	H1 22
Net Operating Fixed Assets	182.6	178.3	Net Financial Position (*)	49.9	44.5
Net Working Capital	ರಿ.5	5.5	Group Equity Minorities	140.4 4.8	133.1 6.1
Net Financial Assets	2.8	-0.1	Total Shareholders' Equity	145.1	139.2
Net Capital Employed	195.0	183.7	Total Sources	195.0	183.7

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI

€M		2023	2023
	Q2	H1	Q2	H1
PATENTS AGREEMENT	---	---	-3,2	-3,2
RESTRUCTURING SG&A	0,3	0,6	0,5	0,9
INDUSTRIAL PLAN	0,0	0,2	3,8	4,3
OTHERS	0,0	0,2	---	---
TOT NRI	0,4	1,0	1,1	2,0

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

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

MINORITIES

€M	2023			2022
	MINORTY SHARES	Q2	H1	MINORTY SHARES	Q2	H1
ARIAFINA	49,0%	0,3	0,7	49,0%	0,2	0,6
AIRFORCE	--%	--	--	40%	(0,1)	0,0
TOT MINORITIES		0,3	0,7		0,1	0,6

• ARIAFINA (Japan) performance in line with 2022
• AIRFORCE is 100% controlled by Elica since July