H1 Results 2022 ANALYSTS PRESENTATION

THURSDAY JULY 28TH, 2022

AGENDA

INDUSTRY TREND & MKT SHARE H1 2022 HIGHLIGHTS

A RECORD SETTING – Q2 2022 RESULTS

HIGHLIGHTS

NET SALES 146,2 M€

YoY Change +14 M€ +10,4% (organic: +6,0%)

EBIT ADJ	YoY Change
9,6 M€	+1,4 M€
6,5%	+0,4 pts

NFP (30,8) M€ Leverage:~ 0,8 YoY Change +16 M€

Revenues hitting a new quarterly record driven by EMEA Cooking and Motor division, despite a negative industry shipment environment
Very strong margin improving 40 bps vs LY, largely offsetting 19 M€ cost inflation
Results Trend confirm our ability to operate in a volatile environment showing strong resilience vs sector current dynamics
Strong Operating Cash Flow despite additional inventories and industrial footprint relocation cashout (~8M€)

H1 2022 RESULTS ON TRACK VS OUR COMMITMENT

NFP Leverage

-1 -0,5 0 0,5 1 1,5 2

INDUSTRY TREND & MKT SHARE INDUSTRY TREND

2022 – COOKER HOODS INDUSTRY SHIPMENTS (Units YoY Change)

	Q1 '22	Q2 '22	H1 '22
Western Europe	(1,9%)	(9,7%)	(6,0%)
Eastern Europe (incl CIS)	(2,7%)	(14,0%)	(8,7%)
Europe	(2,2%)	(11,6%)	(7,2%)
EMEA	(1,7%)	(10,0%)	(6,0%)
North America	4,0%	(8,0)%	(1,8)%
Latin America	(5,5%)	(5,5%)	(5,4%)
AMERICAS	0,1%	(7,2)%	(3,1)%
ASIA	2,1%	(5,3)%	(1,3)%
Total	+0,7%	(7,4)%	(3,4)%

Key evidence

GENERAL REMARKS

The Russia-Ukraine conflict is hitting economies worldwide just as activity is recovering from COVID-19. As close neighbors to Russia and Ukraine, European countries are among the most exposed to the latest shock. Higher energy and food prices weigh on purchasing power, especially for lower income households. Inflation pressures continue to intensify, with implications for the growth outlook. Recent Covid-19-related lockdowns in China added to global manufacturing supply-chain pressures. Energy and food supply disruptions from the Russia-Ukraine war are having a swifter impact on European situation than expected.

EMEA

The Eurozone economy is extremely vulnerable to the rise in energy and food prices due to cuts in supply from Russia and Ukraine. It is also highly sensitive to rising geopolitical risks from the war. Pessimistic consumer sentiment is hitting household spending. For Central and Eastern Europe, the pace of economic growth decelerates in H1, partially due to a base effect, supply chain constraints and growing inflation.

AMERICAS

The US economy slowed down due to higher prices and higher costs of credit access, two main factors that influence consumers cutting down on purchases. Latin America's negative performance derives from tightening financial conditions and persistent high inflation.

ASIA

China's economic growth has slowed down since the beginning of 2022 and contracted in Q2 mostly due to the shutdowns in major cities and ports in China owing to the zero-COVID policy. India performs very well mostly thanks to improvement in mobility. Japan's economy recovered in Q2 thanks to private consumption as a driving force.

SALES DYNAMIC

SALES KEY DRIVERS

Persisting Organic growth trend: Q2 Organic Growth@ +6,0% compared to Q1 @ 5,7%
Net Sales second consecutive quarter record in a row, H1 Organic Growth @ 5,8%
Divestiture/Acquisition net positive balance driven by Motors growth that more than offset India's divestiture

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

COOKING SALES BY BRAND

Q2 2021	49,6	63,1	112,6	H1 2021	106,8	123,7
Divestiture & M&A	-	-6,4 -10,2%	-6,4 -5,7%	Divestiture & M&A	-	-17,5 -14,2%
Currency	+1,9 +3.8%	+0,8 +1,2%	+2,7 +2,4%	Currency	+3,0 +2,9%	+0.5 +0.4%
ORGANIC Growth	-3,1 -6,3%	+8,5 +13,4%	+5,3 +4,7%	ORGANIC Growth	-9,1 -8,5%	+19,1 +15,4%
YoY Change	-1,3 -2,5%	+2,8 +4,4%	+1,5 +1,4%	YoY Change	-6,0 -5,7%	+2,1 +1,7%
Q2 2022	48,3	65,9	114,2	H1 2022	100,7	125,8
Brand weights	42%	58%		Brand weights	44%	56%

KEY PRODUCT CATEGORIES PERFORMANCE

Persisting growth trend in all strategic product families
NikolaTesla range @ 16% of Cooking Sales

ELICA @EUROCUCINA WELCOMED VISITORS UNDER A SKY OF COLOURFUL FLOWERS, A SYMBOL OF RESTARTING.

NIKOLATESLA FIT 3Z NIKOLATESLA ALPHA

NIKOLATESLA RANGE NEW PRODUCTS 2022

NIKOLATESLA UNPLUGGED NIKOLATESLA SWITCH GLOW

16 NIKOLATESLA FIT 3Z NIKOLATESLA ALPHA

TWO DEDICATED LANDING PAGES ON ELICA.COM TO DESCRIBE EUROCUCINA EVENT & LHOV TEASING AND REVEALING STORY

LHOV

59.753 website visits, of which 79% were new users.

Teasing & Revealing landing page, updated post revealing.

Eurocucina

11.881 website visits, of which 93% were new users.

Dedicated lading page with all the product novelties for the event, updated post fair.

ECONOMICS & FINANCIALS ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

	Q2			H1
€M	2022	2021	% VAR	2022	2021	% VAR
NET SALES	146,2	132,4	10,4%	290,2	269,5	7,7%
ADJ EBITDA	15,5	14,2	9,2%	30,4	28,5	6,6%
% NET SALES	10,6%	10,7%	-10 bps	10,5%	10,6%	-10 bps
ADJ EBIT	9,6	8,2	17,2%	18,5	16,7	11,1%
% NET SALES	6,5%	6,2%	40 bps	6,4%	6,2%	20 bps
NRI	(1,1)	(0,5)	132,3%	(2,0)	(3,0)	-32,9%
EBIT	8,5	7,7	10,1%	16,5	13,7	20,6%
% NET SALES	5,8%	5,8%	- bps	5,7%	5,1%	-60 bps
PBT	11,3	7,3	56,1%	19,0	13,0	46,4%
% NET SALES	7,7%	5,5%	230 bps	6,5%	4,8%	170 bps
NET PROFIT	7,7	4,4	76,4%	12,9	8,5	51,8%
% NET SALES	5,3%	3,3%	200 bps	4,5%	3,2%	130 bps
MINORITIES	0,2	1,1	-84,6%	0,6	2,8	-77,9%
GROUP NET PROFIT	7,6	3,3	127,1%	12,3	5,7	114,4%
% NET SALES	5,2%	2,5%	270 bps	4,2%	2,1%	210 bps
ADJ GROUP NET PROFIT	8,4	3,7	127,7%	13,8	7,6	82,1%
% NET SALES	5,8%	2,8%	300 bps	4,8%	2,8%	190 bps

CHANGES vs. PRIOR YEAR

	Q2	H1
VOLUME	+	+ +
/ PRICE MIX	+ +	+ +
RAW MATERIAL INFLATION	--	--
SG&A	+	+
CURRENCY	+	+
D&A	-	-
ADJ EBIT	1 4 ,	1 8 ,
NRI	-	+
FINANCIAL COSTS	+ +	+ +
COMBINED TAX RATE	+	+
NET PROFIT	3 3 ,	4 4 ,

Margins growth in line with Mid term targets, despite a volatile business environment

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI MINORITIES

€M	2022		2021
	Q2	H1	Q2	H1
PATENTS AGREEMENT	-3,2	-3,2	0,0	---
RESTRUCTURING SG&A	0,5	0,9	0,5	1,4
INDUSTRIAL PLAN	3,8	4,3	0,0	---
CHINA BUSINESS MODEL	---	---	---	1,6
TOT NRI	1,1	2,0	0,5	3,0

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

Patent Asset co-ownership
Corporate SG&A Re-sizing
Industrial Plan: additional voluntary exit agreement

€M	MINORTY SHARES	2022		2021
		Q2	H1	Q2	H1
ELICA PB INDIA	—%	—	—	0,6	1,8
ARIAFINA	49,0%	0,2	0,6	0,4	0,8
AIRFORCE	40,0%	(0,1)	—	0,1	0,2
TOT MINORITIES		0,1	0,6	1,1	2,8

MINORITIES impact reduced due to INDIA deconsolidation
ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2021

H1 2022 – NET FINANCIAL POSITION

		COMMENTS

		▪ Strong Operating Cash Flow - despite additional inventories to manage industrial footprint transition and supply chain
		bottlenecks - due for the positive effect of Working Capital
		Project (Prime Revenue)

		▪ Neutral effect of FX impact, negative impact of Divided & Financial Items

		▪ Execution buyback programme - negative impact in Cash
		Flow for 1 M€

		▪ 7,7M€ Cash-out for Voluntary Agreement signed with trade
		unions

		▪ 5M€ of M&A Cash-out related to Motor Division acquisition
		(second tranche of 6,6M€ will be paid in July)

BACK TO A SUSTAINABLE DIVIDEND POLICY

	DIVIDEND CASH-OUT (ME)				GROUP NET PROFIT PRIOR YEAR (M€)	PAYOUT RATIO (%)	DIVIDEND PER SHARE (€)
2007			2,5		8,3	30%	0,04
2008			2,8		ਰੇ,3	30%	0,05
2009	1,1				3,6	30%	0,02
2010
2011		1,5			4,3	35%	0,03
2012
2013		1,4			5,0	28%	0,02
2014		1,7			1,4	123%	0,03
2015		1,8			2,6	68%	0,03
2016	0,6				6,2	10%	0,01
2017
2018
2019
2020
2021
2022				3,8	12,1	31%	0,06

DIVIDEND DISTRIBUTION RATIONALE

Improved Operating Cash flow and Healthy Net Financial Position, despite high level of restructuring NRI
Growing Net Profit Attributable to the Group, thanks to business execution and EMC Acquisition
Demonstrated ability to operate in a volatile environment showing strong resilience vs sector dynamics and growing margins, with further opportunities to improve
Focus on innovation, investments and M&A initiatives remains unchanged
Shareholder's Meeting called for September 28th to approve a dividend payout of 0,06€/Share and re-start a sustainable long term dividend policy.

CLOSING REMARKS & 2022 GUIDANCE

CLOSING REMARKS

Strong Execution offsetting cost inflation without impacting Growth while Improving Profitability
- Delivered second consecutive quarter record in a row with Very Strong Margins
All «mid-term» strategic projects running in line with our expectations:
- Industrial plan relocation confirmed by 1st of January 2023
Full year guidance confirmed :
- Revenues @ consensus despite a worsening demand scenario
- Margins trend in line with our 2022 & mid-term targets path
- Further Net Financial Position Improvement
Back to a Sustainable Dividend Policy, maintaining our focus on innovation, investments and M&A initiatives

ANNEX: FINANCIAL HIGHLIGHTS

Q2 CONSOLIDATED INCOME STATEMENT

Q2 '22	Q2 '21

²⁶ (*) 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

H1 '22	H1 '21

²⁷ (*) 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	2022	2021	△
Trade receivables	93.9	92.3	1.6
% on annualized sales	16.2%	17.1%	(90) bps
nventories	118.6	81.3	37.3
% on annualized sales	20.4%	15.1%	530 bps
Trade payables	(178.5)	(124.5)	(53.9)
% on annualized sales	(30.7)%	(23.1)%	(760) bps
Managerial Working Capital	34.0	49.1	(15.1)
% on annualized sales	5.9%	9.1%	(320) bps
Short term assets & liabilities	(28.5)	(10.8)	(17.7)
% on annualized sales	(4.9)%	(2.0)%	(290) bps
Net Working Capital	5.5	38.2	(32.7)
% on annualized sales	0.9%	7.1%	(620) bps

CONSOLIDATED CASH FLOW

EM	2022	2021
Operating Cash Flow	10.6	15.1
Capex (*)	(8.4)	(6.2)
Cash Flow from Financial Activities	(10.9)	(4.2)
A Net Financial Position	(8.7)	4.8

CONSOLIDATED B/S

	2022	2021		2022	2021
Net Operating Fixed Assets	178.3	147.3	Net Financial Position (*)	44.5	56.4
			Group Equity	133.1	111.0
Net Working Capital	5.5	38.2	Minorities	6.1	19.5
Net Financial Assets	(0.1)	1.2	Total Shareholders' Equity	139.2	130.4
Net Capital Employed	183.7	186.8	Total Sources	183.7	186.8

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