Emak

Investor Presentation • Dec 4, 2023

Geneva Midcap Event 2023

Agenda

• Emak at a glance
• 9M 2023 results
• Appendix

Agenda

• Emak at a glance
• 9M 2023 results
• Appendix

Emak at a glance

Established in 1972

Listed at the Stock Exchange in 1998

3 business segments

2022 sales turnover: 606 €m

>2,000 employees

Our strategy

Innovation

• Product innovation (emissions reduction, safety, comfort)
• Process innovation (virtual reality, 3D printing)
• Digital transformation
• New technologies and applications

Distribution

• Expand and strengthen distribution network in market with high growth potential
• Strengthen OEM relationship
• Omni-channel approach

Efficiency

• Lean approach
• Cost rationalization and operating leverage
• Value creation from acquisitions (synergies)
• Optimization of invested capital

Acquisitions

• Access new technologies
• Complete product range
• Enter new markets

Successfull M&A track record

OUTDOOR POWER EQUIPMENT

PUMPS & HIGH PRESSURE WATER JETTING

COMPONENTS & ACCESSORIES

Agenda

• Emak at a glance
• 9M 2023 results
• Appendix

Summary 9M 2023

Sales

Group

Consolidated sales decreased by 8.6%. This decrease is due to an organic decline in sales for 13.9% and the negative effect of foreign exchange translation for 0.5%, partially offset by the positive effects of the change in the scope of consolidation for 5.8%.

Outdoor Power Equipment

The turnover decrease in Europe concerns the markets that had performed best in 2022: France, Germany and Italy. A general decline is also noted in the Americas area. In the Asia, Africa and Oceania area, sales recover thanks to a good performance in the Turkish market, which offset the lower sales in the Far East and Africa.

Pumps and High Pressure Water Jetting

In Europe, sales generally contracted in all markets in the area, with significant decline especially in Italy and France. The increase in revenues in the Americas area is due to the change in the consolidation area (Bestway contributed for aprox. 25.5 €m), while there was a contraction in sales in South America, with the exception of Brazil. Good performance on the Turkish market, decrease in sales in Oceania, Thailand and China.

Components and Accessories

The slight growth in turnover in Europe is due to the effect of the change in the area (apox. 3 €m), offsetting the decrease recorded in the Italian and Polish markets. The Americas area was penalized by the negative performance recorded by Brazilian subsidiaries, combined with the general decline in the South American market. Contraction in turnover in Asia, Africa and Oceania despite the growth in Turkey.

Profitability

FY 2022		9M 2023	9M 2022	∆	Q3 2023	Q3 2022	∆
605.7	Revenues from sales	449.9	492.3	-8.6%	118.8	124.1	-4.3%	• Acquisition contribution of 3€m
76.6	EBITDA Adj	60.5	68.7	-11.8%	11.1	14.6	-23.9%
12.7%	% on sales	13.5%	14.0%		9.4%	11.8%		• Increase in commercial costs partly offset by the
46.8	EBIT	38.3	49.2	-22.1%	3.5	8.0	-56.1%	reduction in transport costs
7.7%	% on sales	8.5%	10.0%		2.9%	6.4%		• Higher personnel expenses mainly due to scope of
4.0 (8.6)	Financial income Financial expenses	2.9 (11.7)	3.0 (4.7)		0.9 (3.4)	1.2 (2.2)		consolidation and wage dynamics.
1.9	Forex	0.9	2.9		(0.3)	0.7		• Increase financial expenses due to higher market
44.1	Profit befor taxes	30.4	50.4	-39.7%	0.7	7.6	-90.8%	interest rates.
(12.9)	Income taxes	(7.6)	(13.3)		0.0	(2.2)
31.2	Net profit	22.8	37.1	-38.6%	0.8	5.4	-86.1%

31.12.2022	€m	30.09.2023	30.09.2022
206.6	Net non-current assets	222.2	206.6
247.7	Net working capital	253.4	267.3
454.3	Total net capital employed	475.5	473.9
(177.3)	Net financial position	(186.5)	(181.6)
38.0	IFRS16 effect	42.9	37.4
(139.3)	Net financial position (no IFRS16)	(143.6)	(144.2)
277.0	Total equity	289.0	292.2

•		Net working capital:
---	--	----------------------	--

➢ positive trend of reduction in continued in the

third quarter.

➢ Progressive normalization of the level of

inventories

• ➢ decline in trade receivables due to lower sales
• ➢ Acquisition impact of 12€m
• Net financial position
  • ➢ Acquisition impact of 20€m

Cash flow

Agenda

• Emak at a glance
• 9M 2023 results
• Appendix

Results by business segment – 9M 2023

	OUTDOOR POWER EQUIPMENT		PUMPS AND HIGH PRESSURE WATER JETTING		COMPONENTS AND ACCESSORIES		Other not allocated / Netting		Consolidated
€/000	30.09.2023	30.09.2022	30.09.2023	30.09.2022	30.09.2023	30.09.2022	30.09.2023	30.09.2022	30.09.2023	30.09.2022
Sales to third parties	137,470	169,594	193,155	192,540	119,316	130,131			449,941	492,265
Intersegment sales	319	297	2,529	2,829	5,988	7,977	(8,836)	(11,103)
Revenues from sales	137,789	169,891	195,684	195,369	125,304	138,108	(8,836)	(11,103)	449,941	492,265
Ebitda (*)	12,468	13,431	27,645	29,983	21,131	27,457	(1,569)	(2,414)	59,675	68,457
Ebitda/Total Revenues %	9.0%	7.9%	14.1%	15.3%	16.9%	19.9%			13.3%	13.9%
Ebitda before non ordinary expenses (*)	12,553	13,490	28,170	30,061	21,393	27,539	(1,569)	(2,414)	60,547	68,676
Ebitda before non ordinary expenses/Total Revenues %	9.1%	7.9%	14.4%	15.4%	17.1%	19.9%			13.5%	14.0%
Operating result	6,661	7,315	19,551	23,666	13,681	20,623	(1,569)	(2,414)	38,324	49,190
Operating result/Total Revenues %	4.8%	4.3%	10.0%	12.1%	10.9%	14.9%			8.5%	10.0%
Net financial expenses (1)									(7,923)	1,207
Profit befor taxes									30,401	50,397
Income taxes									(7,592)	(13,250)
Net profit									22,809	37,147
Net profit/Total Revenues%									5.1%	7.5%
(1) Net financial expenses includes the amount of Financial income and expenses, Exchange gains and losses and the amount of the					Income from equity investment
STATEMENT OF FINANCIAL POSITION	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022
Net debt (*)	7,455	21,295	129,405	108,992	49,638	47,018	0	0	186,498	177,305
Shareholders' Equity	188,301	184,363	103,119	98,689	75,786	72,228	(78,166)	(78,293)	289,040	276,987
Total Shareholders' Equity and Net debt	195,756	205,658	232,524	207,681	125,424	119,246	(78,166)	(78,293)	475,538	454,292
Net non-current assets (2) (*)	121,826	122,922	117,253	101,679	58,338	57,242	(75,249)	(75,238)	222,168	206,605
Net working capital (*)	73,930	82,736	115,271	106,002	67,086	62,004	(2,917)	(3,055)	253,370	247,687
Total net capital employed (*)	195,756	205,658	232,524	207,681	125,424	119,246	(78,166)	(78,293)	475,538	454,292
(2) The net non-current assets of the Outdoor Power Equipment area includes the amount of Equity investments for 76,074 thousand				Euro
OTHER STATISTICS	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022	30.09.2023	31.12.2022
Number of employees at period end	733	747	958	873	692	655	9	9	2,392	2,284
OTHER INFORMATIONS	30.09.2023	30.09.2022	30.09.2023	30.09.2022	30.09.2023	30.09.2022	30.09.2023	30.06.2022	30.09.2023	30.09.2022
Amortization, depreciation and impairment losses	5,807	6,116	8,094	6,317	7,450	6,834			21,351	19,267
Investment in property, plant and equipment and in intangible assets	3,574	3,025	6,870	4,788	5,408	5,685			15,852	13,498

Consolidated income statement

Year 2022	€/000	3 Q 2023	3 Q 2022	9 M 2023	9 M 2022
605,723	Revenues from sales	118,785	124,060	449,941	492,265
4,753	Other operating incomes	846	1,212	3,321	3,049
12,790	Change in inventories	(2,786)	(701)	(10,205)	9,627
(331,528)	Raw materials, consumables and goods	(58,622)	(62,057)	(228,176)	(269,344)
(99,519)	Personnel expenses	(24,600)	(22,156)	(78,194)	(75,768)
(116,140)	Other operating costs and provisions	(22,790)	(25,864)	(77,012)	(91,372)
(29,324)	Amortization, depreciation and impairment losses	(7,335)	(6,532)	(21,351)	(19,267)
46,755	Operating result	3,498	7,962	38,324	49,190
4,007	Financial income	932	1,172	2,851	3,017
(8,560)	Financial expenses	(3,443)	(2,177)	(11,708)	(4,711)
1,895	Exchange gains and losses	(299)	654	932	2,901
-	Income from/(expeses on) equity investment	16	-	2	-
44,097	Profit before taxes	704	7,611	30,401	50,397
(12,932)	Income taxes	47	(2,210)	(7,592)	(13,250)
31,165	Net profit (A)	751	5,401	22,809	37,147
(897)	(Profit)/loss attributable to non controlling interests	(209)	(339)	(742)	(862)
30,268	Net profit attributable to the Group	542	5,062	22,067	36,285
0.185	Basic earnings per share	0.003	0.031	0.136	0.222
0.185	Diluted earnings per share	0.003	0.031	0.136	0.222

Consolidated balance sheet - Assets

31.12.2022	€/000	30.09.2023	30.09.2022
	Non-current assets
82,524	Property, plant and equipment	85,066	80,255
24,482	Intangible assets	29,399	24,324
36,461	Rights of use	41,062	35,958
71,216	Goodwill	72,914	75,360
8	Equity investments in other companies	8	8
-	Equity investments in associates	802	-
10,395	Deferred tax assets	10,918	10,267
1,151	Other financial assets	1,239	1,133
60	Other assets	98	62
226,297	Total non-current assets	241,506	227,367
	Current assets
233,970	Inventories	225,495	234,170
119,661	Trade and other receivables	121,684	131,451
9,967	Current tax receivables	8,565	8,705
38	Other financial assets	37	38
2,707	Derivative financial instruments	1,984	2,394
86,477	Cash and cash equivalents	91,499	86,185
452,820	Total current assets	449,264	462,943
679,117	TOTAL ASSETS	690,770	690,310

Consolidated balance sheet - Liabilities

31.12.2022	€/000	30.09.2023	30.09.2022
	Shareholders' Equity
273,003	Shareholders' Equity of the Group	284,631	288,542
3,984	Non-controlling interests	4,409	3,707
276,987	Total Shareholders' Equity	289,040	292,249
	Non-current liabilities
	Loans and borrowings due to banks and other
152,346	lenders	171,924	142,871
31,682	Liabilities for leasing	35,484	31,210
7,962	Deferred tax liabilities	7,667	8,019
6,291	Employee benefits	6,153	7,455
2,778	Provisions for risks and charges	2,906	2,605
1,510	Other liabilities	1,373	1,601
202,569	Total non-current liabilities	225,507	193,761
	Current liabilities
109,344	Trade and other payables	95,305	98,691
4,984	Current tax liabilities	5,338	6,609
	Loans and borrowings due to banks and other
76,594	lenders	66,056	90,333
6,357	Liabilities for leasing	7,368	6,216
699	Derivative financial instruments	425	747
1,583	Provisions for risks and charges	1,731	1,704
199,561	Total current liabilities	176,223	204,300
679,117	TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	690,770	690,310

Results by business segment – FY 2022

	OUTDOOR POWER EQUIPMENT		PUMPS AND HIGH PRESSURE WATER JETTING		COMPONENTS AND ACCESSORIES		Other not allocated / Netting		Consolidated
€/000	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021
Sales to third parties	199,436	202,977	241,283	229,990	165,004	155,332			605,723	588,299
Intersegment sales	357	345	3,308	2,877	9,685	10,524	(13,350)	(13,746)
Revenues from sales	199,793	203,322	244,591	232,867	174,689	165,856	(13,350)	(13,746)	605,723	588,299
Ebitda	12,257	16,221	34,910	33,991	31,937	30,913	(3,025)	(3,829)	76,079	77,296
Ebitda/Total Revenues %	6.1%	8.0%	14.3%	14.6%	18.3%	18.6%			12.6%	13.1%
Ebitda before non ordinary expenses	12,495	16,360	35,082	33,382	32,092	31,523	(3,025)	(3,829)	76,644	77,436
Ebitda before non ordinary expenses/Total Revenues %	6.3%	8.0%	14.3%	14.3%	18.4%	19.0%			12.7%	13.2%
Operating result	1,251	8,089	26,054	26,128	22,475	22,516	(3,025)	(3,829)	46,755	52,904
Operating result/Total Revenues %	0.6%	4.0%	10.7%	11.2%	12.9%	13.6%			7.7%	9.0%
Net financial expenses (1)									(2,658)	(7,019)
Profit befor taxes									44,097	45,885
Income taxes									(12,932)	(12,774)
Net profit									31,165	33,111
Net profit/Total Revenues%									5.1%	5.6%
(1) Net financial expenses includes the amount of Financial income and expenses, Exchange gains and losses and the amount of the						Income from equity investment
STATEMENT OF FINANCIAL POSITION	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021
Net debt	21,295	6,778	108,992	96,092	47,018	41,399	0	0	177,305	144,269
Shareholders' Equity	184,363	186,501	98,689	83,830	72,228	63,454	(78,293)	(77,852)	276,987	255,933
Total Shareholders' Equity and Net debt	205,658	193,279	207,681	179,922	119,246	104,853	(78,293)	(77,852)	454,292	400,202
Net non-current assets (2)	122,922	128,424	101,679	95,854	57,242	53,233	(75,238)	(75,394)	206,605	202,117
Net working capital	82,736	64,855	106,002	84,068	62,004	51,620	(3,055)	(2,458)	247,687	198,085
Total net capital employed	205,658	193,279	207,681	179,922	119,246	104,853	(78,293)	(77,852)	454,292	400,202
(2) The net non-current assets of the Outdoor Power Equipment area includes the amount of Equity investments for 76,074 thousand Euro
OTHER STATISTICS	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021
Number of employees at period end	747	758	873	837	655	622	9	8	2,284	2,225
OTHER INFORMATIONS	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021
Amortization, depreciation and impairment losses	11,006	8,132	8,856	7,863	9,462	8,397			29,324	24,392
Investment in property, plant and equipment and in intangible assets	4,461	4,266	8,639	5,229	8,632	8,066			21,732	17,561

Business seasonality

Bestway AG

• The company is recognized as a key player in the US market for the production and marketing of sprayers, equipment for agricultural applications.
• The transaction will allow the expansion and completion of PWJ product range
• The North American agricultural market can be reached and served in a more capillary way.
• FY 2022 figures: turnover of 32 \$m; EBITDA of 2.5 \$m.
• The final consideration for the acquisition was equal to 22.1 million US dollars.

ELECTRONICS

Shareholders and Governance

Emak has been listed on the Italian Stock Exchange since 1998 and since 2001 on STAR segment (dedicated to mid-size companies that adhere to strict requirements appreciated by global investors in terms of governance, liquidity, transparency).

Yama is an industrial holding whose shareholders are the families that founded the Group in late 60's.

Seven families hold 97% of Yama's share capital, with shareholdings from 6% to 23%.

Board of Statutory Auditors
-----------------------------	--

Montanari Stefano Chairman Labanti Roberta Pasquetti Livio

Independent Auditors

Deloitte & Touche S.p.A.

ESG indicators

Environmental	2022	2021
Scope 1 GHG emissions Tons C02eq	4,302	4,974
Scope 2 GHG emissions - market based Tons C02eq	8,047	9,069
Scope 2 GHG emissions - location based Tons C02eq	7,274	8,141
Scope 1 + Scope 2 (market based) Tons C02eq	12,349	14,043
Scope 1 + Scope 2 (location based) Tons C02eq	11,576	13,115
Total waste generated Tons	2,564	2,861
% of recovered waste	69%	63%
% of hazardous waste	4%	4%
Social	2022	2021
# employees	2,284	2,225
% men	65%	64%
% women	35%	36%
Governance	2022	2021
Board gender diversity	46%	38%
Female	6	5
Male	7	8
Total board members	13	13
Average age	58	63
Independent directors	3	3
Executive directors	2	3
Non executives directors	8	7
Separate chairman and CEO	Yes	No
Code of ethics	Yes	Yes

Synthesis of results

€m	2014	2015	2016	2017	2017 PF	2018	2019	2020	2021	2022
Sales	354.8	381.6	391.9	422.2	461.8	452.8	434.0	469.8	588.3	605.7
EBITDA adj	33.1	37.5	40.5	45.6	52.5	50.8	46.9	56.3	77.4	76.6
margin	9.3%	9.8%	10.3%	10.8%	11.4%	11.2%	10.8%	12.0%	13.2%	12.7%
EBITDA	31.5	35.8	39.5	43.9	50.1	49.4	46.1	55.6	77.3	76.1
margin	8.9%	9.4%	10.1%	10.4%	10.8%	10.9%	10.6%	11.8%	13.1%	12.6%
EBIT	20.0	23.3	21.9	30.0	35.8	34.0	22.0	32.9	52.9	46.8
margin	5.6%	6.1%	5.6%	7.1%	7.8%	7.5%	5.1%	7.0%	9.0%	7.7%
Net profit	10.2	9.0	17.7	16.4	20.6	25.6	13.1	19.6	33.1	31.2
margin	2.9%	2.4%	4.5%	3.9%	4.5%	5.7%	3.0%	4.2%	5.6%	5.1%
FCF from operations *	21.7	21.5	35.3	30.4	34.9	41.1	31.8	36.7	51.4	53.8
Net Equity	160.1	168.5	181.7	187.5	187.5	205.8	211.5	222.3	255.9	277.0
Net fin. debt	79.0	99.4	80.1	125.3	125.3	117.4	146.9	126.6	144.3	177.3
Debt/Equity	0.5 * Calculated by adding the items "Net profit" + "Amortization, depreciation and impairment losses" –	0.6	0.4	0.7	0.7	0.6 IFRS 16 effect (starting from 2019)	0.7	0.6	0.6	0.6
Debt/EBITDA adj	2.4	2.7	2.0	2.7	2.4	2.3	3.1	2.2	1.9	2.3

* Calculated by adding the items "Net profit" + "Amortization, depreciation and impairment losses" – IFRS 16 effect (starting from 2019)

2014: Acquisition of Speed Industrie Sarl (Marocco), S.I.Agro Mexico, Geoline Electronic (Italy), Master Fluid (Italy), Speed South America (Chile) 2015: Acquisition of Lemasa (Brazil) 2016: Acquisition of 30% of Cifarelli S.p.A. 2017: Acquisition of Lavorwash Group 2018: Sale of Raico; acquisition of Spraycom (Brazil) 2019: acquisition of 30% of Agres (Brazil) 2020: acquisition of 51% of Markusson (Sweden); increase in Agres to 91% 2021: Acquisition of 80% of Poli (Italy) 2022: Acquisition of 83.33% of Trebol (Spain)

Roberto Bertuzzi, manager responsible for the preparation of the corporate accounting documents, declares and certifies in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in this presentation correspond to the underlying accounting documents, records and accounting entries.

Speakers

Mr. Luigi Bartoli– CEO Mr. Cristian Becchi – CFO Mr. Andrea La Fata – Investor Relator andrea.lafata@emak.it - 0039-0522.956.332