Elica

Investor Presentation • Jul 30, 2020

H1 2020 GROUP CONSOLIDATED RESULTS

THURSDAY JULY 30th, 2020

AGENDA

INDUSTRY TREND

3 NET SALES DYNAMICS

Q2 2020 HIGHLIGHTS

Q2 2020 HIGHLIGHTS

• Industry : Health emergency dramatic effect over production and business dynamics (*)
• Net Sales -40.0% vs Q2 2019, -23% H1: Trade and Production Lock-down in most of the Geographies.
• Huge effort on cost containment to keep H1 Operating Margin @ Break-even: 7 €M SG&A cut vs. 2019 (-17%)
• NFP affected by Health-Emergency-driven NWC dynamics.
• New 100 M€ Loan to support "back-to-growth" recovery and group's working capital management

5

H1 2020 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ Change% vs . Y-1

	Q2'20	H1'20 H1 '20	Key evidence
Western Europe	(29.6%)	(17.9%)	GENERAL REMARKS
Eastern Europe (incl. CIS)	(14.6%)	(7.7%)	volatility in financial markets and corporate decision-making.
Europe	(23.1)	(13.6%)
EMEA	(21.7%)	(12.6%)	EMEA
North America	(30.0%)	(14.9%)
Latin America	(47.9%)	(21.1%)	AMERICAS
AMERICAS	(37.0%)	(17.4%)
ASIA	(12.3%)	(19.9%)	ASIA
WORLD	(19.1%)	(16.9%)	the effectiveness of containment measures adopted in each

GENERAL REMARKS

COVID-19 brought the global economy to a sudden stop, causing shocks to supply and demand. China showing a mild recovery from the effects of the pandemic. The economic situation, remains highly fluid globally fueling perceptions of risk and volatility in financial markets and corporate decision-making.

EMEA

The economic blow was considerably tougher in Q2, due to the prolongation of containment measures. The collapse in industrial production and retail sales was registered throughout the eurozone, particularly in Italy, France, Spain and the UK.

AMERICAS

The US economic response to coronavirus has been overwhelming. Q2 brought the acceleration of infections all over the North and South America with reduction in international trade, falling commodity prices, lower demand and drop in remittances.

ASIA

The main impact of lockdowns is Q2 for most Asian economies excluding China. Emerging as well as advanced economies are struggling, although the situation is not homogeneous due to different intensity of integration with the global value chain and the effectiveness of containment measures adopted in each country.

NET SALES DYNAMICS

7

SALES KEY DRIVERS

• Net Sales -23.0% vs H1 2019, severely impacted by the pandemic.
• Production Shut-downs and Consumer demand declined due to lock-downs and restrictions

	Q2			H1
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price/Mix	(48,0)	-39.3%	Vol/Price/Mix +3,7%	(54,6) +1,1%	-22.9%
Currency	(0,6)	-0.5%	Currency	0,1	≈% 0.1% -5,0%
Reported NS	73,4	-39.8%	Reported NS	184,2	-22.8%

H1 REGIONAL SALES DISTRIBUTION

• ALL clusters affected by COVID-19 spread and progressive Country lock-down policies adoption.
• EMEA & ASIA impacted less than other Geographies thanks to Motor Division and quick B2C Recovery (EMEA) and Japan (Asia)

H1 SALES BY BUSINESS BRAND

• Cooking: Quick B2C recovery in May-June, 54% Own Brand sales. OEM strongly affected by almost 2 moth of Mexican production facility lock-down.
• Motor Division: Production close to normal, demand slow-down since march

KEY PRODUCT CATEGORIES PERFORMANCE

• H1 Growing trend in 3 out of 4 key product categories, despite 4 months of negative COVID-19 effect on business dynamics & production:
  • NicolaTesla range reaching 8% of Global Group Revenues (9% in Q2)
  • New Ceiling & High-End Built-In Hoods growing in their segments

ECONOMICS & FINANCIALS

12

EBITDA

• Q2 Negative Volume Effect (-40%) driving Margin performance, despite the strong focus on SG&A Labour and Opex containment (-21% vs Q2 2019).
• Q2 2020 adjustment (0,9 €M) mainly related to 0,7 €M extra provision (TOT 4,8 €M) for the closing agreement of the litigation between Elica S.p.A and Esperança Real S/A (Brasil), signed and finalised in July.

Q2 2019 adjustment (2,0 €M) related to New CEO appointment (1,3 €M) and Italian Plant restructuring costs

NET PROFIT

• Operating Performance driving Gap in Net Profit despite improved D&A and Financial Costs
• Minorities stable thanks to Japan very late pandemic effect on economy and India flexible business model.
• Major impact over Group Entities due to prolonged Lock-down (Italy, Mexico) and retail trade stop in April, May.

NET FINANCIAL POSITION

• Operating Cash Flow mostly impacted by Covid effects and factories lock-downs. Managerial WC on Sales from 5,6% 2019 to 11,5% 2020, despite 10,6 M€ inventories reduction.
• CAPEX cut on target (-50% vs 2019)
• Negative Effect (1,6 M€ vs 2019) from FX conversion differences over Foreign Entities NFP (*)

→ Leverage largely below covenants, space to cope with crisis-recovery dynamics

NEW FINANCING

• 100 M€ Loan to support "back-to-growth" recovery and group working capital management
• Out of "Decreto Liquidità" programme; competitive Interest Rates
• Additional 50 €M liquidity vs previous Loans reimbursement plan

CONCLUSIONS & 2020 GUIDANCE

17

H1 EXECUTIVE SUMMARY

• Break-even Operating Performance in a -40% volumes scenario
• Effective cost management (SG&A -17% YoY): quick adj. to demand environment
• Key Products showing positive YoY trend despite Covid-19 effect in H1
• Capex 50% Cut, maintaining high focus on New Product and Strategic initiatives
• New 100 M€ Loan to support "back-to-growth" recovery

FY 2020 ESTIMATES & CHALLENGES

• Significant Trend inversion in Q3, B2C back to growth
• Q4 and «shape» of the recovery still difficult to forecast @ this stage

▪ FY Net Sales expected to decline ≈ 15-17% vs. 2019 (from -20% previous est.)

___________________________________________________________________________________

• Maintaining a strong focus on structural cost reduction & financial sustainability
• Margins: moving to the "high-side" of current consensus
• Planning & first execution of key projects to achieve mid-term targets

ANNEX FINANCIAL HIGHLIGHTS

Q1 2020 HIGHLIGHTS

H1 CONSOLIDATED INCOME STATEMENT

€M	H1 '20	H1 19	%
Net Sales	184.2	238.7	-22.8%
EBITDA Adj	12.2	21.2	-42.4%
%	6.7%	8.9%	-220 bps
EBITDA	11.3	19.3	-41.4%
%	6.1%	8.1%	-200 bps
EBIT	(0.9)	6.9	-112.8%
%	-0.5%	2.9%	-340 bps
Net Result	(3.0)	3.1	-195.9%
%	-1.6%	1.3%	-290 bps
EPS* - Euro cents	(7.55)	2.23	-438.6%

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	H1 20	H1 19	△
Trade receivables	55.5	62.8	(7.3)
% on annualized sales	15.1%	13.2%	190 bps
Inventories	68.7	79.4	(10.6)
% on annualized sales	18.7%	16.6%	210 bps
Trade payables	(81.0)	(115.4)	33.6
% on annualized sales	(22.2)%	(24.2)%	(200 bps)
Managerial Working Capital	42.4	26.8	15.7
% on annualized sales	11.5%	5.6%	590 bps
Short term assets & liabilities	(10.0)	(12.3)	2.3
% on annualized sales	(2.7)%	(2.6)%	(10 bps)
Net Working Capital	32.5	14.5	18.0
% on annualized sales	8.8%	3.0%	580 bps

CONSOLIDATED CASH FLOW

EM	H1 '20	H1 '19
Operating Cash Flow	(16.0)	7.6
Capex (*)	(5.9)	(11.2)
Cash Flow from Financing Activities	(4.5)	(3.4)
A Net Financial Position	(26.4)	(7.0)

CONSOLIDATED B/S

	2020	2019		2020	2019
Net Operating Fixed Assets	164.4	176.3	Net Financial Position (*)	85.5	73.9
Net Working Capital	32.4	14.5	Group Equity	98.8	105.2
			Minorities	14.0	11.8
Net Financial Assets	1.5	0.1	Total Shareholders' Equity	112.8	117.0
Net Capital Employed	198.3	190.9	Total Sources	198.3	190.9

DISCLAIMER

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.

Investor Relations

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