Elica

Earnings Release • Nov 14, 2016

Q3 '16 Highlights

• Overall market demand continue to increase 1.5%, with all markets still growing except for Latin America
• Group Net Sales slightly increase 0.3%, driven by strong Own brand business growth +12.6%, due mostly to Elica brand robust performance +24.4%
• EBIT adjusted* decrease by 14.5%, affected by increasing structural costs not completely offset by procurement saving and enhanced industrial productivity
• Outstanding Managerial Working Capital performance (6.9% on annualized Net Sales)
• Net Financial Position stable (62.5 €M), in line with business seasonality

Q3'16 Cooker Hoods Industry Unit Shipments*

Volume Data_Change % vs Y-1

	Q3 '16	9M '16
Western Europe	1.5%	3.1%
Eastern Europe (including CIS)	0.9%	0.6%
Europe	1.3%	2.1%
North America	5.0%	4.7%
Latin America	(0.6)%	(1.0)%
Americas	2.8%	2.3%
Rest of the World	1.2%	(0.5)%
World	1.5%	0.7%

Elica Sales 9M 2016

Sales Trend vs. 9M '15

• Cooking 6.1%
• Own Brands: increase 13.4%
• Client brands: increase 1.1%, stable share on Top OEM
• Electric Motors decrease (-7.0%), mainly due to heating segment trend

	Q3 '16	9M '16
Americas	(7.3)%	2.2%
Europe	0.4%	3.9%
Rest of the World	9.6%	7.7%
Total	0.3%	4.1%

Elica Brand Sales 9M '16

	Q3 '16	9M '16
Europe	19.9%	22.7%
Americas	24.3%	14.7%
Rest of the World	36.9%	28.9%
Total	24.4%	23.8%

9M '16 Consolidated Income Statement

€M	9M'16	9M'15		Δ%
Net Sales	321.0		308.3	4.1%
EBITDA Adj	25.0		23.5	6.6%
%	7.8%		7.6%	0.2 p.p.
EBITDA	23.2		22.2	4.6%
%	7.2%		7.2%	0.0 p.p.
EBIT Adj	11.2		10.5	6.7%
%	3.5%		3.4%	0.1 p.p.
EBIT	9.4		9.3	1.9%
%	2.9%		3.0%	(0.1) p.p.
Net Result	3.5		3.7	(6.2)%
%	1.1%		1.2%	(0.1) p.p.
EPS* – Euro cents	4.93		5.39	(8.5)%

* EPS as at September 30 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.

Q3 '16 Consolidated Income Statement

€M	Q3'16	Q3'15		Δ%
Net Sales	105.5		105.1	0.3%
EBITDA Adj	8.7		9.1	(4.0)%
%	8.3%		8.7%	(0.4) p.p.
EBITDA	7.1		8.8	(20.0)%
%	6.7%		8.4%	(1.7) p.p.
EBIT Adj	4.0		4.7	(14.5)%
%	3.8%		4.5%	(0.7) p.p.
EBIT	2.3		4.4	(47.3)%
%	2.2%		4.2%	(2.0) p.p.
Net Result	0.7		2.1	(68.8)%
%	0.6%		2.0%	(1.4) p.p.
EPS* – Euro cents	0.73		3.18	(77.0)%

* EPS as at September 30 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.

9M '16 Marginality Key Drivers

Change vs. 2015

€M

Net Working Capital as of September, 30

	9M '16 12M'13	12M'13 9M '15	Δ
Trade receivables	68.8	71.1	2.2
% on annualized sales	16.1%	17.3%	(1.2) p.p.
Inventories	69.4	66.2	3.2
% on annualized sales	16.2%	16.1%	0.1 p.p.
Trade payables	(108.5)	(102.1)	(6.5)
% on annualized sales	(25.4)%	(24.8)%	(0.6) p.p.
Managerial Working Capital	29.7	35.2	(5.5)
% on annualized sales	6.9%	8.6%	(1.7) p.p.
Short term assets & liabilities	(9.2)	(11.5)	(2.2)
% on annualized sales	(2.2)%	(2.8)%	0.6 p.p.
Net Working Capital	20.5	23.7	(3.3)
% on annualized sales	4.8%	5.8%	(1.0) p.p.

Consolidated Cash Flow as of September, 30 €M

	Q3 '16	Q3 '15	9M '16	9M '15
Operating Cash Flow	7.9	6.8	15.8	10.0
CapEx	(6.4)	(4.1)	(19.2)	(14.1)
Cash Flow from Financing Activities	(1.7)	(0.6)	(5.8)	(6.2)
FX impact on NFP	(0.5)	(0.7)	(0.4)	(0.4)
∆ Net Financial Position	(0.7)	1.5	(9.5)	(10.8)

Net Financial Position Evolution €M

* Managerial Working Capital

Guidance 2016 Revised

• Group Net Sales from +2.5% to +3.5%
• EBIT Adj* > 3% on Net Sales
• Net Financial Position 61 M€

* Data adjusted by non recurring and restructuring costs

Disclaimer

This presentation contains 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.