Landi Renzo

Investor Presentation • Aug 5, 2024

FY 2023 Financial Results

Cavriago, 05th August 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

2023 results are negatively affected by unfavourable revenue mix in Green Transportation and delay of major orders for Clean Tech Solutions

	M€ (+5,5% vs. previous year), driven by strong increase in demand for OEM-PC1 • FY 2023 revenue reach 212,9 and OEM-MHD2 segments (28.7% vs. previous year)
Green Transportation (Automotive)	• On the other hand, AfterMarket's sales drop (-20,7%) and low marginality associated with main PC customer influence negatively overall profitability, with 3,1 M€ EBITDA adjusted achieved in 2023 (1,5% on revenue)
	• Strong management focus on Working Capital optimization (mainly inventory reduction) brings significant results, with a reduction of NWC3 by 7,5M€ vs. end of 2022 (16,4% of 2022 value)

Clean Tech Solutions (Infrastructure)	• FY 2023 results are significantly affected by postponement of some major orders, that caused a slowdown of production in Q3
	• Despite partial recovery in Q4, FY 2023 revenue stand at 90,4 M€ (-13,5% compared to previous year), with an EBITDA adjusted of 3,9 M€ (4,3% on revenue)
	• Slowdown affected mainly traditional CNG orders, while backlog composition indicate a continuous increase of H 2 and O&G projects
	NWC3 • is negatively impacted by slowdown of production in Q3, causing an increase of 5,5 M€ vs. previous year (mainly due to loss of advance payments for postponed large orders in Q3)

Despite Group's revenue are in line with previous year, segment's mix in Green Transportation and delay of major orders for Clean Tech Solutions cause a profitability drop

	Green Transportation	Clean Tech Solutions	LRG1
M€; %	FY 2023	FY 2023	FY 2023	FY 2022	delta	delta %
Revenues	212,9	90,4	303,3	306,3	-3,0	-1,0%
Adj. EBITDA	3,1	3,9	7,0	15,3	-8,2	-54,0%
% on rev.	1,5%	4,3%	2,3%	5,0%
EBITDA	-2,3	2,4	0,1	11,0	-10,9
% on rev.	-1,1%	2,7%	0,0%	3,6%
EBIT	-16,1	-0,5	-16,6	-6,0	-10,6
% on rev.	-7,6%	-0,5%	-5,5%	-2,0%
EBT			-29,8	-13,9	-15,9
% on rev.			-9,8%	-4,5%
Net Result			-36,4	-14,3	-22,2

• Green Transportation accounts for 70% of Group's FY sales vs. a 66% incidence in 2022 and drives overall revenue growth (+11,2 M€ YoY)
• Group's Adj. EBITDA falls below previous year's level, due to higher incidence of OEM Passenger Car volumes in Green Transportation and lower revenue in Clean Tech Solutions
• Increase of financial charges and the write-off of deferred taxes generated a negative impact on the Net Result vs previous year

Revenue growth is mainly fueled by Passenger Car sales, while increase in MHD volumes vs. previous year partly offset Aftermarket's reduction

	M€ ; %	FY 2023	FY 2022	delta	delta %
	Revenues	212,9	201,7	+11,2	+5,5%
	Adj. EBITDA	3,1	9,3	-6,2	-66,7%
Green	% on rev.	1,5%	4,6%
Transportation (Automotive)	EBIT	-16,1	-8,6	-7,5	+86,9%
	% on rev.	-7,6%	-4,3%
	NWC	38,1	45,6
	NFP (1)	82,0	68,5

• OEM Passenger Car and Medium and Heavy-Duty segments drive revenue growth (+28.7 % YoY), partly mitigated by the reduction of Aftermarket volumes (-20.7% YoY)
• Adjusted EBITDA falls below previous year performances (-6,2 M€), due to lower product's marginality of PC segment compared to MHD and Aftermarket; however, MHD growing sales continue to generate improvement compared to previous quarters (Adj. EBITDA 9M 2023 was 1,3 M€)
• Negative impact of low profitability on cash absorption is partly mitigated by improvement of NWC, reduced by 7,5 M€ YoY (mainly through inventory optimization)

Indian JV KLR (not consolidated) confirms to grow at high double-digit rate (+46% YoY), leveraging leading position in fast-growing Indian OEM market for CNG vehicles

Highlights

• KLR's leading position in the Indian CNG market continues driving company's performances

Postponement of some major orders in Q3 has significantly impacted FY 2023 results, with both Revenue and profitability below previous year levels

	M€ ; %	FY 2023	FY 2022	delta	delta %
	Revenues	90,4	104,6	-14,1	-13,5%
	Adj. EBITDA	3,9	6,0	-2,1	-34,3%
	% on rev.	4,3%	5,7%
Clean Tech Solutions	EBIT	-0,5	2,6	-3,1
	% on rev.	-0,5%	2,5%
	NWC	14,6	9,1
	NFP (1)	16,6	8,7

• Reduction of turnover (-13,5% YoY) is mainly affected by postponement of some large orders in Q3
• Volume reduction in Q3 has a significant impact also on profitability: despite revenue increase in Q4, EBITDA adj. closes at 3,9 M€ YoY (-2,1 M€ compared to previous year)
• NFP growth is mainly driven by lower economic performances and NWC growth (reduction of advance payments due to order postponement)

Unfavourable revenue mix in Green Transportation and delay of major orders for Clean Tech Solutions lead to a 20 M€ increase of NFP

• NFP increases by 20,1 M€, mainly impacted by limited profitability (Group's EBITDA at 0,1 M€), capital expenditures and financial charges
• Cash reduction at the end of the period is driven by operational and financial absorption occurred throughout the FY 2023
• Based on the Bank agreement signed in July 2024, 73 M€ of long-term debt were rescheduled to 2030 vs the previous deadline of 2028

Last months have been focused on defining LRG's industrial plan and securing all the financial resources required to implement it

Financial resources required to implement the Industrial Plan are guaranteed through the capital structure reinforcement and the extension of financing banks support

FY 2024 outlook

• Turnover expected in line with 2023, with improving profitability in Green Transportation division
• More favorable sales mix for Green Transportation and acceleration of order intake for Clean Tech Solutions are expected to generate improvements in the second half of 2024

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 02/08/2024: €0,25

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	31/12/2023	31/12/2022 Restated
Revenues from sales and services	303,339	306,297
Other revenues and income	2,305	1,249
Cost of raw materials, consumables and goods and change in inventories	-189,468	-188,979
Costs for services and use of third-party assets	-57,699	-54,780
Personnel costs	-51,010	-47,218
Allocations, w rite dow ns and other operating expenses	-7,378	-5,525
Gross Operating Profit	89	11,044
Amortization, depreciation and impairment	-16,706	-17,077
Net Operating Profit	-16,617	-6,033
Financial income	1,460	1,129
Financial expenses	-11,646	-7,630
Exchange gains (losses)	-1,626	-1,453
Income (expenses) from hyperinflation	-1,272	-217
Income (expenses) from equity investments	-224	-275
Income (expenses) from joint venture measured using the equity method	107	597
Profit (Loss) before tax	-29,818	-13,882
Taxes	-6,621	-385
Net profit (loss) for the Group and minority interests, including:	-36,439	-14,267
Minority interests	-1,270	14
Net profit (loss) for the Group	-35,169	-14,281
Basic earnings (loss) per share (calculated on 225,000,000 shares)	-0.1563	-0.0635
Diluted earnings (loss) per share	-0.1563	-0.0635

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	31/12/2023	31/12/2022
Non-current assets
Land, property, plant, machinery and other equipment	13,232	14,015
Development expenditure	9,987	11,141
Goodw ill	80,132	80,132
Other intangible assets w ith finite useful lives	15,034	17,263
Right-of-use assets	11,945	13,618
Equity investments measured using the equity method	2,498	2,496
Other non-current financial assets	902	847
Other non-current assets	0	1,710
Deferred tax assets	8,745	14,109
Non-current assets for derivative financial instruments	39	103
Total non-current assets	142,514	155,434
Current assets
Trade receivables	72,821	73,559
Inventories	76,260	76,680
Contract w ork in progress	17,377	20,429
Other receivables and current assets	17,355	17,148
Current financial assets	20,647	0
Current assets for derivative financial instruments	0	412
Cash and cash equivalents	26,495	62,968
Total current assets	230,955	251,196
TOTAL ASSETS	373,469	406,630

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	31/12/2023	31/12/2022
Shareholders' Equity
Share capital	22,500	22,500
Other reserves	77,596	91,698
Profit (loss) for the period	-35,169	-14,281
Total Shareholders' Equity of the Group	64,927	99,917
Minority interests	5,277	5,967
TOTAL SHAREHOLDERS' EQUITY	70,204	105,884
Non-current liabilities
Non-current bank loans	67,785	8,169
Other non-current financial liabilities	18,503	24,456
Non-current liabilities for right-of-use	10,090	11,314
Provisions for risks and charges	6,244	5,484
Defined benefit plans for employees	3,257	3,413
Deferred tax liabilities	3,048	2,910
Liabilities for derivative financial instruments	515	0
Total non-current liabilities	109,442	55,746
Current liabilities Bank financing and short-term loans	51,987	103,629
Other current financial liabilities	7,459	3,956
Current liabilities for right-of-use	2,792	3,196
Trade payables	100,115	98,033
Tax liabilities	2,440	3,697
Other current liabilities	29,030	32,489
Total current liabilities	193,823	245,000
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	373,469	406,630