Elica

Investor Presentation • Oct 31, 2019

9M 2019 CONSOLIDATED RESULTS

THURSDAY 31ST OF OCTOBER, 2019

AGENDA

Q3 & 9M 2019 HIGHLIGHTS

Q3 & 9M 2019 HIGHLIGHTS

• Persisting Negative WW Industry (-2,0%) (*)
• Q3 Net Sales +4,9% vs LY (+3,3% organic), driving 9M YoY trend to +0,2% (-1,1% organic):
  • Cooking: +5,5% vs LY driven by Own Brands in "Greater Europe", India and B2B EMEA recovery (+8,3% vs. LY).
  • Motor Division: recovering to +0,8% in Q3 vs LY (from -15,2% vs. 2018 in H1)
• "OWN Brand" @ ≈53% of cooking business sales (51,4% H1), growing ≈11% vs Q3 2018
• Q3 Solid Operating Performance Improvement:
  • ADJ EBITDA: 11,3 €M @ 9.7% on Net Sales (9,0% @ 2018 IFRS, +60 bps vs. Q3 2018)
  • ADJ EBIT: 5,1 €M @ 4.3% on Net Sales (+70 bps vs. Q3 2018)
  • NET PROFIT: 2,8 €M vs. 1,7 €M Q3 2018 (+64%)
• NFP (60,1) €M vs (66,5) €M Q3 2018 (**)

MARKET SCENARIO

COOKER HOODS INDUSTRY SHIPMENTS (UNITS)

• Improving Western EU: positive industry in Italy, Spain and France, weak Germany.
• Turkish Market trend (-10%) worsening EMEA overall trend.
• Persisting negative market in NA; worsening Asia (China -5%) despite a +7% India growth.

Volume Data Change% vs . Y-1	03 19	9M '19	Key evidence
Western Europe	0.8%	0.1%	EMEA
Eastern Europe (incl. CIS)	(4.3%)	(2.1%)	Turkey is dragging down the Eastern Europe, followed by Poland while Russia remains stable compared to the
Europe	(1.3%)	(0.8%)	previous year. Slight recovery of the WE especially thanks to France and
EMEA	(0.8%)	(0.6%)	Netherlands. Germany continues to be weak. AMERICAS
North America	(2.0%)	(2.1%)	Worsening global trade and escalating trade tensions are hurting NA performance.
Latin America	1.5%	0.5%	LA is staging a slight recovery.
AMERICAS	(0.7%)	(1.1%)	ASIA Chinese downturn is affected by governmental policies
ASIA	(3.3%)	(1.5%)	regulating Real estate market and limiting investments in Top-Tier cities. Solid growth in India, stability in South-East Asia.
WORLD	(2.1%)	(1.1%)

NET SALES DYNAMICS

SALES KEY DRIVERS

• Q3 Net Sales +3,3% organic growth vs LY, driving 9M YoY trend to +0,2% (-1,1% organic):
  • Cooking: +5,5% vs LY driven by Own Brands in "Greater Europe", India and B2B EMEA recovery (+8,3% vs. LY)
  • Motor Division: recovering to +0,8% in Q3 vs LY (from -15,2% vs. 2018 in H1)

	Q3			9M
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price/Mix	3,6	3.3%	Vol/Price/Mix	(3,9)	(1.1%)
Currency	1,8	1.6%	Currency	4,7	1.3%
Reported	5,4	4.9%	Reported	0,8	0.2%

REGIONAL SALES DISTRIBUTION

• Q3 EMEA positive performance driven by Own Brand Growth in all Markets while OEM sales shows a trend inversion vs. Q3 2018.
• Q2 & Q3 Demand and main OEM customers performance affecting Americas dynamics.

SALES by BUSINESS - BRAND

• Cooking Business Sales +5,5% vs LY driven by Own Brands (@ 53%), India and B2B EMEA recovery (+8,3% vs. LY). Americas slow-down OEM demand driven.
• Motor Div. trend inversion despite persisting negative industry and TK market dynamics

KEY PRODUCT CATEGORIES PERFORMANCE

• Growing trend in all key product categories thanks to Range extension & Renovation:
  • NicolaTesla range already strongly Above 2018 FY Revenues
  • New platform launch boost effect on New Ceiling sales

NPI & RANGE EXTENSION KEY CATEGORIES NS TREND %

RENOVATION ASPIRATION HOBS RANGE 2019

RENOVATION HOODS RANGE 2019

ELICA FIRST BUILT IN PRODUCT WITH NO DRIP TECHNOLOGY

ECONOMICS & FINANCIALS

9M 2019 EBITDA

• Q3 ADJUSTED EBITDA (@ 2018 IFRS) 9,0% on NS: +70 bps vs. Q3 LY.
• 9M 2019: 2,0 M€ Adj (CEO agreement, Restructuring Costs); 4,0 M€ in 2018 (Gutmann GMbH Insolvency)

9M 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 (≈60 bps)

Q3
Change vs Y-1
€M Volume/Price/Mix	++
Operations Efficiency	-
Currency	+
Cost Efficiency	++
IFRS 16	+
ADJ EBITDA (€M)	2,0

9M
Change vs Y-1
€M Volume/Price/Mix	-
Operations Efficiency	-
Currency	+
Cost Efficiency	++
IFRS 16	+
ADJ EBITDA (€M)	3,2

9M 2019 NET PROFIT

• Net Profit attributable to the Group improving 35,8% vs. 9M 2018 (+0,6 M€).
• India ownership share change in Sept 2018 (from 51% to 25,5%) and business growth main effect over Minorities

NET FINANCIAL POSITION

• Improving NWC increase to support B2C growth and product availability in key markets impacting Operating CF. Tax and Financial Items effect balanced.
• CAPEX yoy decrease of 4,7 M€ vs. 9M 2018, in line with reduction target.

CONCLUSIONS & TAKEAWAYS

CONCLUSIONS & TAKEAWAYS

• Persisting Negative WW Industry trend, improving West Europe (*)
• 9M Net Sales in line with 2018 (-1,1% Organic); Strong recovery in Q3 (+4,9%)
• "OWN Brand" @ 53% of cooking business sales, growing ≈11% vs Q3 2018
• Q3 Solid Operating Performance Improvement (9,0% EBITDA @ 2018 IFRS): Good Exit Speed over Q4
• Continuous NFP improvement to (60,1) €M vs (66,5) €M Q3 2018 (**)

▪ Q4-FY 2019 OUTLOOK

• Q4 WW Industry: «Slightly Negative to Flat» vs 2018
• Net Sales: Q4 in line with Q3 Exit Speed
• CapEx: ≈ 4,3% 4,5% on Net Sales

▪ 3Y PLAN

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

ANNEXES FINANCIAL HIGHLIGHTS

9M CONSOLIDATED INCOME STATEMENT

²⁴ (*) 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	9M '19	9M '18	△
Trade receivables % on annualized sales	62.9 13.3%	65.6 13.8%	(2.6) (50) bps
Inventories % on annualized sales	78.7 16.6%	78.8 16.6%	(0.1) 0 bps
Trade payables % on annualized sales	(109.7) (23.1)%	(114.3) (24.1)%	4.7 100 bps
Managerial Working Capital % on annualized sales	32.0 6.7%	30.1 6.4%	1.9 30 bps
Short term assets & liabilities % on annualized sales	(12.7) (2.7)%	(8.5) (1.8)%	(4.1) (90 bps)
Net Working Capital % on annualized sales	19.3 4.1%	21.6 4.6%	(2.3) (50 bps)

CONSOLIDATED CASH FLOW

EM	9M '19	9M '18
Operating Cash Flow (*)	11.2	13.8
Capex	(14.4)	(19.1)
Cash Flow from Financing Activities	(1.5)	7.4
A Net Financial Position	(4.6)	2.1

CONSOLIDATED B/S

	2019	2018		2019	2018
Net Operating Fixed Assets	174.7	161.5	Net Financial Position (*)	71.3	66.5
Net Working Capital	19.3	21.5	Group Equity Minorities	109.1 13.3	106.9 ರಿ.5
Net Financial Assets	(0.3)	(0.2)	Total Shareholders' Equity	122.4	116.4
Net Capital Employed	193.7	182.9	Total Sources	193.7	182.9