Landi Renzo

Investor Presentation • Nov 20, 2023

Q3 2023 Financial Results

Cavriago, 20th november 2023

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

Green	• Despite After Market's volumes continue being below historical levels, Revenue 9M YTD top at 155.0 M€ (+9.8% vs. previous year), fueled by increasing demand in both PC1 and MHD2 segments
Transportation	• Improvement of marginality with main PC European customers, strong incidence of MHD sales in China and
(Automotive)	operational efficiencies drive also EBITDA adjustment improvement, achieving 1.2 M€ in the third quarter,
	compared to 0.2 M€ generated in the first half

	Clean Tech	• Q3 results are strongly affected by the postponement of some major orders that causes a slowdown of production, with Revenue 9M YTD at 66.1 M€ (-12% compared to previous year)
(Infrastructure)	Solutions	• Volume reduction in Q3 affects strongly overall profitability, causing a negative EBITDA adjusted in Q3 of -0.5 M€
		• Despite contraction of Q3, H and O&G projects continue growing at fast rate, contributing to 2024 backlog 2

• Green Transportation: management efforts to optimize working capital (mainly inventory reduction), are slightly offset by increase of receivables (influenced by sales mix)
• Clean Tech Solutions: major orders postponement directly affects also Net Working Capital, causing higher cash absorption (reduction of advanced payment from customers)

Despite YoY growth in revenue (2% vs. 9M 2022), profitability decreases due to lower incidence of Clean Tech Solutions on turnover and unfavorable segment mix in Green Transportation

	Green Transportation	Clean Tech Solutions	LRG1
M€; %	9M 2023	9M 2023	9M 2023	9M 2022	delta	delta %
Revenues	155,0	66,1	221,1	216,4	+4,7	+2,2%
Adj. EBITDA	1,3	3,2	4,6	8,7	-4,1	-47,5%
% on rev.	0,9%	4,9%	2,1%	4,0%
EBITDA	-3,2	2,1	-1,1	7,1	-8,2
% on rev.	-2,1%	3,2%	-0,5%	3,3%
EBIT	-13,8	0,0	-13,9	-6,0	-7,9
% on rev.	-8,9%	-0,1%	-6,3%	-2,8%
EBT			-23,0	-8,9	-14,1
% on rev.			-10,4%	-4,1%
Net Result			-28,6	-9,9	-18,7

• Green Transportation accounts for 70% of Group's 9M sales vs. a 65,3% incidence in 9M 2022 and drives overall revenue growth (+4,7 M€ YoY)
• Green Transportation Adj. EBITDA improves compared to the previous quarters, but is still below previous years level, due to higher incidence of growing OEM Passenger Car volumes (replacing below expectations Aftermarket sales)
• Production slowdown in Q3 strongly affects Clean Tech Solutions 9M results and dilutes overall group Adj. EBITDA (-4,1 M€ vs. 9M 2022)

Stable growth of Passenger Car volumes continue to sustain Green Transportation revenue increase but reduced share of Aftermarket sales impacts division's profitability

	M€ ; %	9M 2023	9M 2022	delta	delta %
	Revenues	155,0	141,2	+13,8	+9,8%
	Adj. EBITDA	1,3	4,4	-3,1	-70,0%
Green	% on rev.	0,9%	3,1%
Transportation (Automotive)	EBIT	-13,8	-7,9	-5,9
	% on rev.	-8,9%	-5,6%
	NWC	47,1	46,5
	NFP (1)	85,9	(*) 68,5

(*) at 31/12/2022

Highlights

• OEM Passenger Car segment, supported by acceleration of MHD sales, continue to drive division's revenue growth (+9.8% YoY) and offset contraction of Aftermarket volumes (- 16% YoY)
• Due to unfavorable segment mix, Adjusted EBITDA is below previous year performances (-3,1 M€); however, thanks to increasing incidence of MHD sales and marginality increase with main PC client, results improve compared to first semester (Adj. EBITDA H1 2023 was 0.2 M€)
• Increasing trade receivables due to revenue mix increase working capital absorption, partly offsetting results of inventory optimization process

Indian JV KLR (not consolidated) confirms positive results in Q2, with YoY revenue growth still at high double-digit level

Highlights

• KRL revenue increase is in line with fastgrowing Indian CNG market for Passenger Car, with volumes expected further increase and multiple OEMs ready to introduce their gas vehicles in

Production slowdown in Q3, due to the postponement of some major orders, strongly affects both revenue and profitability of Clean Tech Solutions

	M€ ; %	9M 2023	9M 2022	delta	delta %
	Revenues	66,1	75,1	-9,0	-12,0%
	Adj. EBITDA	3,2	4,3	-1,1	-24,2%
	% on rev.	4,9%	5,7%
Clean Tech Solutions	EBIT	0,0	1,9	-1,9
	% on rev.	-0,1	2,6%
	NWC	14,4	18,8
	NFP (1)	14,9	(*) 8,7

(*) at 31/12/2022

Highlights

• Postponement of some important orders in traditional CNG business strongly impacts Q3 turnover (-24,2 % vs. Q3 2022) and penalizes 9M cumulated revenue (-12% YoY)
• Volume reduction in Q3 has a significant impact also on Adj. EBITDA, that decreases by 1,1 M€ YoY, offsetting first semester positive results (+0,5 M€ vs. H1 2022)
• Order postponement directly affects Net Working Capital dynamics, with lower advanced payments from customers causing higher cash absorption during Q3

NFP increases by 10.5 M€ vs. H1 2023, with significant impact of Clean Tech Solution negative economic performance and Working Capital absorption

Highlights

• Both divisions contribute to the increase of NFP:
  • Despite improving performances, negative economic result for Green Transportation division do not compensate labor cost capitalization and financial charges
  • For Clean Tech Solutions, Q3 volume reduction has a double effect, leading to a negative economic performance and an increase of the Net Working Capital
• Due to IFRS applicable rules, part of 2022 long-term debt has been reclassified in short-term debt

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

www.landirenzogroup.com www.landirenzo.com

WWW

9

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 13/11/2023: €0,44

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	30/09/2023	30/09/2022 Restated
Revenues from sales and services	221,138	216,351
Other revenues and income	1,296	582
Cost of raw materials, consumables and goods and change in inventories	-138,294	-132,925
Costs for services and use of third-party assets	-41,579	-39,455
Personnel costs	-37,373	-34,289
Allocations, w rite dow ns and other operating expenses	-6,310	-3,194
Gross Operating Profit	-1,122	7,070
Amortization, depreciation and impairment	-12,771	-13,065
Net Operating Profit	-13,893	-5,995
Financial income	891	988
Financial expenses	-8,341	-5,484
Exchange gains (losses)	-1,614	1,128
Income (expenses) from equity investments	-173	-288
Income (expenses) from joint venture measured using the equity method	134	778
Profit (Loss) before tax	-22,996	-8,873
Taxes	-5,615	-1,019
Net profit (loss) for the Group and minority interests, including:	-28,611	-9,892
Minority interests	-883	223
Net profit (loss) for the Group	-27,728	-10,115
Basic earnings (loss) per share	-0.1232	-0.0450
Diluted earnings (loss) per share	-0.1232	-0.0450

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	30/09/2023	31/12/2022
Non-current assets
Land, property, plant, machinery and other equipment	13,396	14,015
Development expenditure	9,519	11,141
Goodw ill	80,132	80,132
Other intangible assets w ith finite useful lives	15,587	17,263
Right-of-use assets	12,472	13,618
Equity investments measured using the equity method	2,635	2,496
Other non-current financial assets	1,183	847
Other non-current assets	1,140	1,710
Deferred tax assets	8,518	14,109
Non-current assets for derative financial instruments	422	103
Total non-current assets	145,004	155,434
Current assets
Trade receivables	69,219	73,559
Inventories	81,770	76,680
Contract w ork in progress	13,264	20,429
Other receivables and current assets	17,685	17,148
Current financial assets	20,253	412
Cash and cash equivalents	21,198	62,968
Total current assets	223,389	251,196
TOTAL ASSETS	368,393	406,630

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	30/09/2023	31/12/2022
Shareholders' Equity
Share capital	22,500	22,500
Other reserves	78,009	91,698
Profit (loss) for the period	-27,728	-14,281
Total Shareholders' Equity of the Group	72,781	99,917
Minority interests	5,820	5,967
TOTAL SHAREHOLDERS' EQUITY	78,601	105,884
Non-current liabilities
Non-current bank loans	77,764	8,169
Other non-current financial liabilities	20,578	24,456
Non-current liabilities for right-of-use	10,547	11,314
Provisions for risks and charges	7,080	5,484
Defined benefit plans for employees	3,175	3,413
Deferred tax liabilities	2,766	2,910
Liabilities for derivative financial instruments	0	0
Total non-current liabilities	121,910	55,746
Current liabilities
Bank financing and short-term loans	38,060	103,629
Other current financial liabilities	5,861	3,956
Current liabilities for right-of-use	2,872	3,196
Trade payables	94,201	98,033
Tax liabilities	2,477	3,697
Other current liabilities	24,411	32,489
Total current liabilities	167,882	245,000
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	368,393	406,630