Landi Renzo

Investor Presentation • Sep 6, 2024

H1 2024 Financial Results

Cavriago, 6th September 2024

Disclaimer

This document has been prepared by Landi Renzo S.p.A for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the "Group"), as well as any of their directors, officers, employees, advisers or agents (the "Group Representatives") accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available. This presentation contains forward looking statements regarding future events and future results of Landi Renzo S.p.A. (the "Company") that are based on the current expectations, estimates, forecasts and projections about the industries in which the Company operates, and on the beliefs and assumptions of the management of the Company. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management, competition, changes in business strategy and the acquisition and disposition of assets are forward looking in nature. Words such as 'expects', 'anticipates', 'scenario', 'outlook', 'targets', ' goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', as well as any variation of such words and similar expressions, are intended to identify such forward looking statements. Those forward looking statements are only assumptions and are subject to risks, uncertainties and assumptions that a re difficult to predict because they relate to events and depend upon circumstances that will occur in the future. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward looking statements. Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward-looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations. The values of this document are represented in Euro Millions while in the Financial Statement are represented in thousands of Euros, values could reflect rounding decimals effects.

H1 2024 confirms economic improvement of Green Transportation, while limited production level of Clean Tech Solutions influences negatively Group's result

Green Transportation (Automotive)	• H1 2024 revenue stands at 102,5 M€, in line with previous year (-1,7% vs. H1 2023) but with a more favourable mix of volumes on AM1 and OEM-MHD2 and decrease of OEM-PC3 driven by an increase • Product marginality continue to improve in all segments, thanks to pricelist adjustments and efficiencies in the operations • Strong management focus on Net Working Capital drives a significant reduction of Inventory; however, reduction of rescheduled trade payable and discontinuation of credit factoring cause a deterioration of NFP
Clean Tech Solutions (Infrastructure)	• Backlog beginning of the year below the expectations and slow order intake in the first months of 2024 lead to a reduction of revenue vs. previous year (-22,9% vs. H1 2023); • Volume's drop affect mainly traditional CNG business, while increasing orders of Oil&Gas and Hydrogen imply higher complexity in job execution and longer throughput time, leading to slower revenue recognition • Despite stable incidence of raw material, low volumes lead to higher incidence of non-compressible costs (e.g. direct labor, engineering) causing a deterioration of product profitability • Tight management of Net Working Capital mitigates financial impact on NFP, increased only by 0,9 M€
Capital Increase	• H1 2024 financial structure does not reflect impact of the financial optimization project, concluded with the agreements signed 1st august 2024 among company's majority Shareholders, Invitalia5 and financing banks, that will grant to the Company a capital increase of 40-45 M€ and the remodulation of debt instalments • Major shareholder contribution to the capital increase will already be at company's disposal in Q3 2024

(1) Aftermarket (2) Medium and Heavy Duty (3) Passenger Car (4) Net Financial Position

(5) Invitalia – "Agenzia nazionale per lo sviluppo", acting as manager of the "Fondo salvaguardia imprese" promoted by MIMIT - Ministry of Enterprises and Made in Italy

First half economic results show an almost null EBIDTA adj, leading to a Group's loss of 18,5 M€, in line with the previous year

	Green Transportation	Clean Tech Solutions	LRG
M€; %	H1 2024	H1 2024	H1 2024	H1 2023	delta	delta %
Revenues	102,5	36,7	139,1	151,8	-12,7	-8,3%
Adj. EBITDA	0,7	-0,7	0,1	3,9	-3,9
% on rev.	0,7%	-1,8%	0,0%	2,6%
EBITDA	-2,1	-1,6	-3,7	-0,3	-3,4
% on rev.	-2,0%	-4,4%	-2,7%	-0,2%
EBIT	-8,5	-3,0	-11,5	-8,8	-2,7
% on rev.	-8,3%	-8,1%	-8,3%	-5,8%
EBT			-18,0	-15,6	-2,4
% on rev.			-12,9%	-10,3%
Net Result			-18,5	-20,9	2,5

• Reduction of turnover vs. H1 2023 is mainly driven by Clean Tech Solutions, due to the low amount of backlog and order intake in the period
• Despite the improving performances of Green Transportation, Adjusted EBITDA remains almost null for both divisions, leading to a negative result after depreciation and financial charges

Green Transportation: despite a slight reduction of revenue, a more favorable product mix drives an increase of Adj. EBITDA

	M€ ; %	H1 2024	H1 2023	delta	delta %
	Revenues	102,5	104,3	-1,8	-1,7%
	Adj. EBITDA	0,7	0,2	0,6
	% on rev.	0,7%	0,2%
Green Transportation	EBIT	-8,5	-10,4	1,9
(Automotive)	% on rev.	-8,3%	-9,9%
	M€	H1 2024	FY 2023
	NWC	48,9	38,1
	NFP (1)	106,5	82,0

• Decrease of revenue with the main PC client (which has lower margin compared to other segments) is partly offset by increase of AM and OEM-MHD
• More favorable segment mix leads to an improvement of product marginality, and, despite higher fixed cost vs. H1 2023, to Adjusted EBITDA above previous year performances (+0,6 M€)
• Higher absorption of NWC is the main factor influencing NFP increase:
  • Reduction of debt with suppliers
  • Lower incidence of factor on credit collection
  • Inventory reduction

Clean Tech Solutions: lower Value of Production cause the significant deterioration of division's profitability in H1 2024

Clean Tech Solutions	M€ ; %	H1 2024	H1 2023	delta	delta %
	Revenues	36,7	47,5	-10,9	-22,9%
	Adj. EBITDA	-0,7	3,8	-4,4
	% on rev.	-1,8%	7,9%
	EBIT	-3,0	1,5	-4,5
	% on rev.	-8,1%	3,2%
		H1 2024	FY 2023
	NWC	11,7	14,6
	NFP (1)	17,5	16,6

• Low Value of Production of equipment influence H1 2024 results, due to:
  • Backlog at the end of 2023 slightly lower than expectations (~2,5M€)
  • Lower contribution from traditional (CNG) orders in both North America and Europe
  • Slower revenue recognition, due to higher complexity and execution timing for projects in growing Oil&Gas and Hydrogen segments
• Lower than expected volumes cause a deterioration of marginality, due to increased incidence of noncompressible costs (e.g., direct labor, engineering);
• Impact of negative economic performances on cash is partly mitigated through tight control of net working capital, with positive results in terms of inventory reduction and credit collection

NFP increase is mainly influenced by Net Working Capital increase in Green Transportation – improvement expected with financial optimization project

• NFP (including reduction due to variation of financial leases) increases by 22,9 M€, mainly driven by increase of Net Working capital in Green Transportation (reduction of debt with suppliers and discontinuation of factoring for credit collection)
• Long and Short-term debt remains stable, with limited repayment planned in the short term, thanks to agreement signed with lenders following company's financial optimization project
• H1 2024 financial structure do not reflect yet the impact of financial optimization project, including a Capital Increase by the end of the year of 40-45 M€, of which the portion invested by the majority shareholder will be already available in Q3

Landi Renzo S.p.A. Headquarter Via Nobel 2 - 42025 Corte Tegge Cavriago (RE), Italy

www.landirenzogroup.com www.landirenzo.com

WWW

Landi Renzo - Company profile

BOARD OF DIRECTORS

Stefano Landi – Chairman Sergio Iasi – Deputy Chairman Annalisa Stupenengo – CEO Andrea Landi – Director Silvia Landi – Director Massimo Lucchini – Director Anna Maria Artoni – Independent Director Sara Fornasiero – Independent Director Pamela Morassi – Independent Director

SHARE INFORMATION

Euronext STAR Milan segment of Borsa Italiana

N. of shares outstanding: 225.000.000

Price as of 06/09/2024: €0,23

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts:

Paolo Cilloni Tel: +39 0522 9433 E-mail: ir@landi.it www.landirenzogroup.com

CONSOLIDATED P&L

(Thousands of Euro)
CONSOLIDATED INCOME STATEMENT	30/06/2024	30/06/2023 (Restated)
Revenues from sales and services	139,142	151,805
Other revenues and income	458	1,024
Cost of raw materials, consumables and goods and change in inventories	-84,737	-94,405
Costs for services and use of third-party assets	-29,956	-28,386
Personnel costs	-26,649	-25,124
Allocations, w rite dow ns and other operating expenses	-1,962	-5,226
Gross Operating Profit	-3,704	-312
Amortization, depreciation and impairment	-7,770	-8,511
Net Operating Profit	-11,474	-8,823
Financial income	531	447
Financial expenses	-6,048	-5,399
Exchange gains (losses)	-257	-1,624
Income (expenses) from hyperinflation	-812	-212
Income (expenses) from equity investments	-548	-27
Income (expenses) from joint venture measured using the equity method	626	20
Profit (Loss) before tax	-17,982	-15,618
Taxes	-479	-5,316
Net profit (loss) for the Group and minority interests, including:	-18,461	-20,934
Net profit (loss) attributable to non controlling interests	-1,733	21
Net profit (loss) attributable to the Group	-16,728	-20,955
Basic earnings (loss) per share	-0.0743	-0.0931
Diluted earnings (loss) per share	-0.0743	-0.0931

CONSOLIDATED BALANCE SHEET (1/2)

(thousands of Euro)
ASSETS	30/06/2024	31/12/2023
Non-current assets
Land, property, plant, machinery and other equipment	13,016	13,232
Development expenditure	9,874	9,987
Goodw ill	80,132	80,132
Other intangible assets w ith finite useful lives	13,928	15,034
Right-of-use assets	9,967	11,945
Equity investments measured using the equity method	3,216	2,948
Other non-current financial assets	870	902
Other non-current assets	0	0
Deferred tax assets	8,5	8,745
Non-current assets for derivative financial instruments	25	39
Total non-current assets	139,528	142,514
Current assets
Trade receivables	75,676	72,821
Inventories	73,426	76,26
Contract w ork in progress	14,757	17,377
Other receivables and current assets	18,032	17,355
Current financial assets	618	20,647
Cash and cash equivalents	18,771	26,495
Total current assets	201,28	230,955
TOTAL ASSETS	340,808	373,469

CONSOLIDATED BALANCE SHEET (2/2)

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	30/06/2024	31/12/2023
Shareholders' Equity
Share capital	22,5	22,5
Other reserves	43,369	77,569
Profit (loss) for the period	-16,728	-35,169
Total Shareholders' Equity of the Group	49,141	64,927
Minority interests	3,44	5,277
TOTAL SHAREHOLDERS' EQUITY	52,821	70,204
Non-current liabilities
Non-current bank loans	5,13	67,785
Other non-current financial liabilities	15,496	18,503
Non-current liabilities for right-of-use	8,308	10,09
Provisions for risks and charges	5,819	6,244
Defined benefit plans for employees	3,317	3,257
Deferred tax liabilities	2,984	3,048
Non-current Liabilities for derivative financial instruments	80	515
Total non-current liabilities	41,134	109,442
Current liabilities
Bank financing and short-term loans	109,763	51,987
Other current financial liabilities	12,935	7,459
Current liabilities for right-of-use	2,479	2,792
Trade payables	83,295	100,115
Tax liabilities	1,968	2,44
Other current liabilities	36,653	29,03
Total current liabilities	247,093	193,823
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	340,808	373,469