Elica

Investor Presentation • Feb 13, 2020

Q4 & PRELIMINARY FY 2019 GROUP CONSOLIDATED RESULTS

THURSDAY FEBRUARY 13th, 2020

AGENDA

Q4 & PRELIMINARY FY 2019 HIGHLIGHTS

Q4 & PRELIMINARY FY 2019 HIGHLIGHTS

• § WW Industry Flat in Q4 2019, slightly negative FY (-0,8%) (*)
• § Q4 Net Sales +5,8% vs LY (+4,3% organic), driving FY trend to +1,6% vs LY (+0,3% organic):
• § Cooking: +4,2% vs LY driven by Own Brands in "Greater Europe"
• § Motor Division: +17,5% vs LY in Q4 (from -15,2% vs. 2018 in H1)
• § "OWN Brand" @ 55% of cooking business sales in Q4 (52% FY), growing ≈11% vs 2018
• § Q4 Solid Operating Performance:
• § ADJ EBITDA: 12,5 €M @ 10.0% on Net Sales (9,1% @ 2018 IFRS, +7,4% vs. Q4 2018)
• § ADJ EBIT: 5,7 €M @ 4.6% on Net Sales (-10 bps vs. Q4 2018)
• § NET PROFIT: 1,5 €M vs. -1,8 €M Q4 2018 (+183%)
• § NFP (47,2) €M vs (56,3) €M Q4 2018 (**)

NS TREND by QTR 2018-2019

FY 2019: 1 YEAR @ 2 SPEEDS

	H1 2019		H2 2019			FY 2019
	RESULT		YoY	RESULT		YoY	RESULT		YoY
NET SALES	238,7	▼	-1,9%	241,3	▲	+5,3%	480,0	▲	+1,6%
ADJ. EBITDA MARGIN (*)	8,3%	▬	+10 bps	9,1%	▲	+40 bps	8,7%	▬	+20 bps
ADJ. EBIT MARGIN	3,7%	▼	-50 bps	4,5%	▲	+30 bps	4,1%	▬	-10 bps
NFP (*)	(62,7)	▼	+7,2 M€	(47,2)	▼	+9,1 M€	(47,2)	▼	+9,1 M€

MARKET SCENARIO

COOKER HOODS INDUSTRY SHIPMENTS (UNITS)

• § Improving Western EU: positive industry in GB, Spain and France balance a weak Germany
• § Turkish Market trend (-5%) worsening Eastern EU overall trend
• § Persisting negative market in NA and Asia with a negative China (-0,5%) and a growing India (+5,5%)

Volume % Change vs. Y-1	Q4 '19	FY '19	Key evidence
Western Europe	2.9%	0.8%	EMEA
Eastern Europe (incl. CIS)	$(1.1\%)$	(1.8%)	EU is staging a recovery. France and UK consumption effect) demand increase c
Europe	1.2%	$(0.3\%)$	back. Turkey continues to drag down the EE, f
EMEA	0.9%	(0.2%)	that shows industry softness. AMERICAS
North America	$(2.0\%)$	(2.1%)	Worsening global trade and escalating t rendering NA economy vulnerable. LA is
Latin America	1.0%	0.6%	recovery due to the Brazilian stimulated
AMERICAS	(0.9%	$(1.0\%)$	ASIA China's economic slowdown is continuir
ASIA	(0.3%)	(1.2%)	strongest factors there are rising tensio war with the US. Solid growth in India p increased public spending and growing
WORLD	0.0%	(0.8%)	consumption. Stability in South-East Asi

NET SALES DYNAMICS

SALES KEY DRIVERS

• § Cooking: +4,2% vs LY driven by Own Brands in "Greater Europe", Japan & India (FY: +2,5%)
• § Motor Division: strong recovery coming from Product Mix-Up and New Deals: +17,5% vs LY (FY -4,4% vs. 2018)

	Q4			FY
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price/Mix	5,1	4.4%	Vol/Price/Mix	1,2	0.3%
Currency	1,7	1.4%	Currency	6,4	1.3%
Reported NS	124,1	5.8%	Reported NS	480,0	1.6%

REGIONAL SALES DISTRIBUTION

• § EMEA positive performance driven by Own Brand Growth in all Markets
• § Asian cluster Q4 trend driven by China and Asia-Pacific demand while India remains strong.
• § North America market demand and main OEM customers performance affecting Americas dynamics.

SALES by BUSINESS - BRAND

• § Cooking Business Sales +4,2% vs LY and Motor Division trend inversion driving the overall positive performance in Q4. Negative OEM dynamics driven by Americas.
• § Own Brands sales @ 55% of Cooking Business in Q4

ECONOMICS & FINANCIALS

EBITDA

• § Q4 ADJUSTMENT (0,6 M€) mainly related to Americas Organization Restructuring costs
• § 6,2 M€ in 2018 related to Gutmann GMbH Insolvency closing transaction.
• § IFRS 16 introduction effect on full comparability

2019 PROFITABILITY KEY DRIVERS

• § Balanced Manufacturing Costs thanks to positive volume effect and operational efficiencies (EMEA). Positive FX effect and continuous focus on SG&A containment
• § IFRS 16 effect on YoY comparison (≈70 bps)

Q4
Change vs Y-1
€M Volume/Price/Mix	++
Operations Efficiency	-
Currency	+
Cost Efficiency	+
IFRS 16	+
ADJ EBITDA (€M)	1,9

FY
Change vs Y-1
€M Volume/Price/Mix	-
Operations Efficiency	-
Currency	+
Cost Efficiency	++
IFRS 16	+
ADJ EBITDA (€M)	5,1

NET PROFIT

• § Net Profit attributable to the Group improving 409,7% vs. 2018 (+3,9 M€).
• § Minorities increase mainly related to India performance (+0,9 M€ vs 2018) and ownership share change in Sept 2018 (from 51% to 25,5%) and Ariafina Japan (+0,2 M€ vs 2018)

NET FINANCIAL POSITION

• § Planned CAPEX reduction delivering 6,6 M€ vs. 2018 FCF improvement.
• § NWC in line with 2018 despite B2C growth (+10% YoY) and an overall Net Sales increase of 5,8% in Q4 2019.
• § Financial items YoY Variance due to Derivatives evaluation @ MKT price (1,0 M€), IFRS 16 (0,4 M€) and positive effect in 2018 of the discounting of Gutmann GMbH Receivables (0,7 M€).

¹⁷ (*) 2018: Elica PB India 25,5% Shares Sale to Whirlpool (10,2 €M, Q3). 2019: Gutmann GMbH transaction (1,6 €Min, Q1) and 2,04% Treasury Shares Sale to TIP (2,5 €M, Q3).

CONCLUSIONS & TAKEAWAYS

CONCLUSIONS & TAKEAWAYS

§ Q4-FY 2019

• § Negative WW Industry trend; improvement confirmed in West Europe (*)
• § Net Sales +5,8% vs LY in Q4 (+4,3% organic), driving FY trend to +1,6% vs LY
• § "OWN Brand" @ 55% of cooking business sales in Q4
• § Solid Operating Performance Improvement (9,1% EBITDA @ 2018 IFRS)
• § Continuing NFP Improvement to (47,2) €M vs (56,2) €M 2018 à Leverage Ratio @ 1,1. (**)

§ POSITIVE "ENTRY SPEED" IN 2020

ANNEX PRELIMINARY 2019 FY FINANCIAL HIGHLIGHTS

FY CONSOLIDATED INCOME STATEMENT

				2018 GAAAP
€M	12M '19	12M '18	%	12M '19
Net Sales	480.0	472.4	1.6%	480.0
EBITDA Adj	45.0	40.0	12.7%	41.6
$\%$	9.4%	8.5%	90 bps	8.7%
EBITDA	42.5	29.8	42.4%	39.1
$\%$	8.9%	6.3%	260 bps	8.1%
EBIT	17.1	8.5	99.7%	17.0
$\%$	3.6%	1.8%	180 bps	3.5%
Net Result	7.4	2.3	218.9%	7.6
$\%$	1.5%	0.5%	100 bps	1.4%
$EPS^*$ - Euro cents	4.70	(1.55)	403.2%	4.99

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

$\geq$ elica

€M	12M '19	12M '18	Δ
Trade receivables	55.0	51.2	3.8
% on annualized sales	11.5%	10.8%	70 bps
Inventories	72.9	76.2	(3.3)
% on annualized sales	15.2%	16.1%	(90 bps)
Trade payables	(110.1)	(109.9)	(0.2)
% on annualized sales	$(22.9)\%$	$(23.3)\%$	(40 bps)
Managerial Working Capital	17.8	17.5	0.3
% on annualized sales	3.7%	3.7%	0 bps
Short term assets & liabilities	(9.7)	(10.8)	1.1
% on annualized sales	$(2.0)\%$	$(2.3)\%$	30 bps
Net Working Capital	8.1	6.7	1.5
% on annualized sales	1.7%	1.4%	30 bps

CONSOLIDATED CASH FLOW

€M	12M'19	12M'18
Operating Cash Flow (*)	32.7	33.3
Capex	(21.2)	(27.8)
Cash Flow from Financing Activities	(3.0)	6.9
$\triangle$ Net Financial Position	8.5	12.4

CONSOLIDATED B/S

	2019	2018		2019	2018
Net Operating Fixed Assets	175.4	163.7	Net Financial Position $(*)$	58.9	56.3
Net Working Capital	8.1	6.7	Group Equity Minorities	111.1 14.2	102.9 11.3
Net Financial Assets	0.7	0.1	Total Shareholders' Equity	125.3	114.2
Net Capital Employed	184.2	170.5	Total Sources	184.2	170.5

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