Elica

Investor Presentation • May 7, 2020

Q1 2020 GROUP CONSOLIDATED RESULTS

THURSDAY MAY 7^h , 2020

AGENDA

1 2 3 GLOBAL OVERVIEW & Q1 2020 HIGHLIGHTS

INDUSTRY TREND

GLOBAL OVERVIEW & Q1 2020 HIGHLIGHTS

GOBAL OVERVIEW: COVID SPREAD & EFFECTS on BUSINESS CONTINUITY

• % Group Net Sales: 1%
• Plant Lock-down till 24th Feb
• Supply Chain continuity
• Improving business dynamics

▪ EUROPE

• % Group Net Sales: 70%
• Lock-down (IT, PL) in April (1 to 4 weeks)
• Commerce blocked in most of countries, OEM
• Phase 2: evaluating recovery dynamics

▪ US & OTHER ASIA

• % Group Net Sales: 29%
• Lock-down (Mex, India) Apr (May tbd)
• Worsening Health scenario
• Distribution mostly blocked

GOBAL OVERVIEW: CRISIS GOVERNANCE

1

3 MAIN PILLARS CRISIS COMMITTEE TASK-FORCE COVID 19

• CEO
• CFO
• Group HR
• COO
• EHS Manager
• Corporate Communication
• IT
• Motor Division
• Plant Managers
• Countries
• Internal Audit & Risk
• Legal

KEEPING SAFE OUR PEOPLE & COMMUNITIES

DELIVERING OUR BUSINESS GOALS & SERVING OUR CUSTOMERS 2

IMPROVING OUR GOVERNANCE & ESG COMMITMENT 3

• Adoption of all available health protection measures (health protocol)
• Smart Working since 1st week of march & in-advance implementation of technical-organizational aids for health protection (Plants, HQ's, w/houses)
• Covid-19 health insurance extended to all employees
• Communication to our community Radio Elica
• Re-organization of operating activities & Operational Emergency management (adapting to customer requests and regulation scenario)
• Implementation of strong actions to sustain margins, control SG&A and improve liquidity
• Maintaining 100% focus on Key New Product and Strategic initiatives
• Analysis of the technical-organizational measures adopted with respect to what is defined by the applicable legislation
• Analysis of possible impacts with relevance pursuant to L. Decree 231/01 and equivalents
• Real-time monitoring of potential cyber-security threats

Q1 2020 HIGHLIGHTS

• Negative WW Industry : Health emergency strongly affecting QTR-end dynamics in EMEA (*)
• Net Sales -5.0% vs Q1 2019, mainly affected by March result (+2.0% YTD February)
• Solid Operating Performance, despite impact of COVID-19, driven by cost management:
  • EBITDA: 10,9 €M @ 9,9% on Net Sales (8,8% in Q1 2019)
  • EBIT: 4,3 €M @ 3,9% on Net Sales (3,7% in Q1 2019)
  • NET PROFIT: 2,0 €M vs. 2,1 €M Q1 2019 (-3,1%)
• Major Focus on SG&A and 360° Cost Containment actions to balance Top-Line stress
• Further NFP Improvement (12,1 €M vs Q1 2019) delivering incremental liquidity; planning additional CAPEX cut to mitigate crisis effects.

7

COOKER HOODS INDUSTRY SHIPMENTS (UNITS)

$$\mathbb{S}\mathbb{C}\mathbb{S}$$

• Dynamics strongly affected by Covid-19 progressive WW emergency and countermeasures adoption.
• Asia trend driven by China; India impacted only @ QTR end
• Europe shipments deep slow-down in March (Government lock-down strategy in WE)

Volume Data % Change vs . Y-1	FY (19	Q1 '20
Western Europe	0.8%	(5.0%)
Eastern Europe (incl. CIS)	(1.8%)	(0.5%)
Europe	(0.3%)	(2.7%)
EMEA	(0.2%)	(2.5%)
North America	(2.1%)	(1.5%)
Latin America	0.6%	1.6%
AMERICAS	(1.0%)	(0.2%)
ASIA	(1.2%)	(28.3%)
WORLD	(0.8%)	(14.4%)

NET SALES DYNAMICS

9

SALES KEY DRIVERS

• Net Sales -5.0% vs Q1 2019, mainly affected by March result (YTD February@ +2.0% vs 2019), negative volume effect partially offset by positive price/mix (+1.4%)
  • Cooking: -6.7% vs LY driven by OEM Brand (-11.45%) March impact
  • Motor Division: +6.3% vs LY despite slow down in March ( YTD February @ +9.6%)

Q1 SALES DISTRIBUTION & DYNAMICS

• EMEA, AMERICAS & ASIAN clusters strongly affected by overall COVID-19 spread, shipment cancellation and progressive Country lock-down policies
• Motor Division: Production Continuity. Very positive progression in Jan-Feb, demand slow-down in March
• OWN Brands: positive YTD February (+9.8%), while OEM impacted by key customers crisis stock reduction

REGIONAL DISTRIBUTION BUSINESS - BRAND

KEY PRODUCT CATEGORIES PERFORMANCE

• Growing trend in all key product categories thanks to Range extension & Renovation:
  • NicolaTesla range arriving to 7.3% of Global Group Revenues (vs 5.9% Q1 2019)
  • All trends negatively affected by March Dynamics

ECONOMICS & FINANCIALS

13

EBITDA

• Negative Volume Effect mitigated by Price Mix and positive Operational Efficiencies despite production volumes drop @ March month-end.
• Strong focus on Labour Cost and SG&A containment

		Q1 EBITDA			KEY DRIVERS
				€M	Change vs Y-1
% NS	9,9%	+110 bps	8,8%		€M Volume	--
				Price-Mix	+
10,9 10,2 % VAR +7,1%			Operation Efficiency	+
		Currency	-
			Cost Efficiency	++
	Q1 2020		Q1 2019		EBITDA (€M)	0,7

STRONG FOCUS ON COST CONTAINMENT & FINANCIAL SUSTAINABILITY

LABOUR COST	SG&A	OTHER ACTIONS
▪ WW Activation Of Labour Cost Containment Institutes: ▪ Italy (Plants + HQ) ▪ France	▪ New WW SG&A Procedure: (Group CFO Approval for any OPEX above 3K€) ▪ EuroCucina & Fairs Cut	▪ 50% Capex Budget Cut ▪ Pocket and maximize Raw Material deflation opportunities
▪ Spain ▪ Germany ▪ Mexico (Plant + HQ) ▪ Poland (Plants + HQ) ▪ Collective Holidays	▪ Trade Marketing Events ▪ Travel Ban ▪ Key Contracts Renegotiation (Rentals, Energy, Logistic &	▪ Postponement Of All "Non Strategic" Projects With 2020 Cost Impact. ▪ Reduction in senior executive officers

• Hiring Freeze
• Factories flexible workforce adapted to current demand environment
• Warehousing costs, IT, Consulting & Support, ...)

compensation

NET PROFIT

• Net Profit attributable to the Group penalised by COVID-19 spread over European Countries & negative combined tax rate effect. Volume and previous years Capex Carryover effect on D&A.
• Minorities increase mainly related to India (0,3 M€)

KEY DRIVERS
Change vs Y-1
€M EBITDA	++
D&A	--
Financial Costs	+
Combined Tax Rate	-
NET PROFIT (€M)	(0,1)

NET FINANCIAL POSITION

• Operating Cash Flow +4 M€ vs Q1 2019, driven by EBITDA growth and Inventories reduction.
• Negative FX Effect (0,8 M€ vs 2019) from FX conversion differences over Foreign Entities NFP (*)
• Leverage Ratio strongly below covenants, space to cope with crisis effects
• On-going analysis with Group main financial partners for a more structured M/L term approach

Leverage Ratio: NFP/ Rolling 12 Months EBITDA (*) Mainly EUR/MXP in ElicaMex (0,8) M€

CONCLUSIONS & TAKEAWAYS

18

Q1 EXECUTIVE SUMMARY

• Solid Operating Performance, showing a more and more flexible business model
• Effective cost management: ability to adapt quickly to demand environment
• Key Products showing positive YoY trend despite Covid-19 effect in March
• Further NFP Improvement: Leverage Ratio 40% improvement vs. Q1 2020

FY 2020 ESTIMATES & CHALLENGES

• Trend inversion and «shape» of the recovery difficult to forecast @ this stage
• Net Sales YoY expected to decline, with major hit in Q2 2020
• Maintaining the already strong focus on cost containment actions & financial sustainability, while evaluating a turn-around plan
• → Solid fundamentals to capitalize on demand recovery

ANNEX 1 FINANCIAL HIGHLIGHTS

Q1 2020 HIGHLIGHTS

FY CONSOLIDATED INCOME STATEMENT

€M	Q1 20	01 19	%
Net Sales	110.8	116.6	-5.0%
EBITDA Adj	10.9	10.2	7.1%
%	9.9%	8.8%	110 bps
EBITDA	10.9	10.2	7.1%
%	9.9%	8.8%	110 bps
EBIT	4.3	4.3	0.7%
%	3.9%	3.7%	20 bps
Net Result	2.0	2.1	-3.1%
%	1.8%	1.8%	0 bps
EPS* - Euro cents	1.41	2.12	-32.2%

²² (*) 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 20	Q1 19	△
Trade receivables % on annualized sales	62.1 14.0%	60.9 13.1%	1.2 90 bps
Inventories % on annualized sales Trade payables	72.3 16.3%	80.5 17.2%	(8.2) (90 bps)
% on annualized sales	(108.1) (24.4)%	(108.9) (23.4)%	(0.8) (100 bps)
Managerial Working Capital % on annualized sales	26.3 5.9%	32.4 7.0%	(6.1) (110 bps)
Short term assets & liabilities % on annualized sales	(12.0) (2.7)%	(12.7) (2.7)%	(0.7) 0 bps
Net Working Capital % on annualized sales	14.4 3.2%	19.8 4.2%	(5.4) (100 bps)

CONSOLIDATED CASH FLOW

€M	Q1 20	Q1 19
Operating Cash Flow (*)	(0.6)	(4.9)
Capex	(3.3)	(3.1))
Cash Flow from Financing Activities	(3.1)	(3.4)
A Net Financial Position	(7.1)	(11.3)

CONSOLIDATED B/S

€M	2020	2019		2020	2019
Net Operating Fixed Assets	167.6	175.0	Net Financial Position (*)	66.0	78.3
Net Working Capital	14.4	19.8	Group Equity Minorities	101.3 13.5	107.0 10.8
Net Financial Assets	(1.2)	1.2	Total Shareholders' Equity	114.8	117.8
Net Capital Employed	180.8	196.0	Total Sources	180.8	196.0

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