Landi Renzo

Investor Presentation • Sep 13, 2023

H1 2023 Financial Results

Cavriago, 12th September 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

Both Clean Tech and Green Transportation BUs show recovery of margins in Q2, with strong momentum for RNG and H2 demand (infrastructure) and MHD sales (Automotive)

	Both Clean Tech and Green Transportation BUs show recovery of margins in Q2, with
	strong momentum for RNG and H2 demand (infrastructure) and MHD sales (Automotive)
	• Persisting difficulties of emerging economies continue penalizing After Market's performances
Green Transportation	• OEM – PC strong demand continue also in Q2; a major marginality improvement with main European client contributes significantly to overall profitability improvement
(Automotive)	• M&HD European market is in line with expectations, while strong market momentum in China is boosting CNG and LNG sales
	• Q2 results are in line with previous year performances, but recovering marginality improves BU's profitability
Clean Tech Solutions (Infrastructure)	• Traditional CNG refueling station sales are progressively being replaced by different applications along the (O&G) value chain; RNG and H demand is growing at fast rate, with large contribution already in 2023 and several 2 advanced negotiations expected to guarantee a solid backlog for 2024
	• For the Automotive BU, Q2 shows first results of management dedicated focus on working capital optimization, with further financial benefit expected in the second half of the year
Operation improvement	• For the Infrastructure BU, improved credit collection and continuous inventory reduction offset lower customer deposits vs. previous period; lean manufacturing project under development expected to bring further operational improvements by the end of FY 2023

Clean Tech
Solutions

Operation improvement

• improvement deposits vs. previous period; lean manufacturing project under development expected to bring further operational improvements by the end of FY 2023

Solutions LRG¹ Group's H1 revenue show a ~5% growth vs. 2022, however unfavorable segment mix in Green Transportation division dilutes overall profitability

	Green Transportation	Clean Tech
M€; %	H1 2023	H1 2023	H1 2023	H1 2022	delta	delta %	Highlights
Revenues	104,3	47,5	151,8	144,4	+7,4	+5,1%
Adj. EBITDA	0,2	3,8	3,9	6,5	-2,6	-40,0%
% on rev.	0,2%	7,9%	2,6%	4,5%			vehicles)
EBITDA	-3,3	3,0	-0,3	5,3	-5,6	n.a.
% on rev.	-3,2%	6,3%	-0,2%	3,7%			expectations Aftermarket sales) imply an
EBIT	-10,4	1,5	-8,8	-3,4	-5,4	n.a.
% on rev.	-9,9%	3,2%	-5,8%	-2,4%
EBT			-15,6	-6,1	-9,5	n.a.
% on rev.			-10,3%	-4,2%			leveraging improving industrial margins
Net Result			-20,9	-6,6	-14,3	n.a.

Highlights delta %

• +5,1% • Revenues increase vs. 2022 (+7.4 M€, 5.1%) is driven by Green Transportation division, supported by increasing volumes in the OEM business (both passenger and mid/ heavy-duty vehicles) • In terms of marginality, growing OEM • Despite revenue in line with previous years, Clean Tech Solutions increases profitability, -40,0%
  • Passenger Car volumes (replacing below expectations Aftermarket sales) imply an unfavorable segment mix, only partly offset by OEM Mid/Heavy Duty growth
  • leveraging improving industrial margins
  • Group's EBITDA and Net Results below previous year are negatively affected by Green Transportation marginality loss

Green Transportation double-digit revenue growth is fueled by OEM volumes, but reduced share of Aftermarket sales impacts negatively division's profitability

						Highlights
	M€ ; %	H1 2023	H1 2022	delta	delta %
	Revenues	104,3	93,8	+10,4	+11,1%
	Adj. EBITDA	0,2	3,3	-3,2	n.a.	Aftermarket segment
Green	% on rev.	0,2%	3,5%
Transportation (Automotive)	EBIT	-10,4	-5,1	-5,2	n.a.
	% on rev.	-9,9%	-5,5%
	NWC	46,1	49,4
	NFP (1)	80,5	(*) 68,5
			(*) at 31/12/2022			year

• Double-digit revenues growth (11.1%) is mainly driven by OEM Passenger Car volumes, with significant demand from main EU Client offsetting performances below expectations in the Aftermarket segment • Almost null adj. EBITDA is influenced by product margin with main Passenger Car Client lead to a • First results of management plan to optimize 104,3 +11,1%
  • mix shifted towards OEM segment; however, increasing revenue of MHD sales and improving recovery in Q2 vs. Q1 results
  • NWC are already visible, with main activities focused on inventory level reduction; further improvements expected for the second half of the year

After Q1's slowdown, strong recovery in Q2 realigns Indian JV KLR (not consolidated) with expected performances

• Normalization of natural gas price at the pump pushes revenue recovery in Q2, aligning H1
• 22,7 +51% 2023 results with expected performances • Positive outlook is expected also for the second half of the year, favored by more stable natural gas price dynamics and confirmed fast-

Despite a light revenue contraction, Clean Tech Solutions shows improving profitability, driven by recovery of previous raw material cost increases and operational efficiencies

						Highlights
Clean Tech Solutions	M€ ; %	H1 2023	H1 2022	delta	delta %	• Postponement of some important orders in the traditional CNG refueling station
	Revenues	47,5	50,6	-3,1	-6,0%	business is partly offset by fast-growing demand for applications in O&G, bio
	Adj. EBITDA	3,8	3,2	+0,5	+16,6%	methane and hydrogen
	% on rev.	7,9%	6,4%			• Adj. EBITDA improves, with +16.6%
	EBIT	1,5	1,7	-0,2	-10,0%	increase vs. H1'22 favored by recovery of previous raw material price increases and operational efficiencies
	% on rev.	3,2%	3,4%
						• Significant reduction of NWC is caused by progressive completion of company's WIP,
	NWC	10,1	18,0			while PFN slightly increases compared to the end of 2022; both measures are in line
	NFP (1)	9,2	(*) 8,7			with normal business cycle (mainly related to advance payments for equipment orders)
			(*) at 31/12/2022			• "Lean World Class Manufacturing" initiative (mainly focused on reducing waste on not value-adding activities), started in Q2, is expected to bring first results already in the

• -6,0% +16,6% the traditional CNG refueling station business is partly offset by fast-growing demand for applications in O&G, biomethane and hydrogen
  • Adj. EBITDA improves, with +16.6% increase vs. H1'22 favored by recovery of previous raw material price increases and operational efficiencies
• Significant reduction of NWC is caused by progressive completion of company's WIP, while PFN slightly increases compared to the end of 2022; both measures are in line with normal business cycle (mainly related to advance payments for equipment orders) • "Lean World Class Manufacturing" initiative
  • (mainly focused on reducing waste on not value-adding activities), started in Q2, is expected to bring first results already in the second half of the year

Improvement of NFP by 3.5 M€ (vs. Q1) is driven by Clean Tech Solution increasing profitability and optimization of NWC for Green Transportation

• Q2 2023 shows a NFP reduction compared to Q1 2023, thanks to Clean Tech Solutions improved profitability and optimization of NWC for Green Transportation: • Due to IFRS applicable rules, part of long-term debt has been
• Despite Q2 improvement, H1'23 NFP(1) increases by 11.6€ vs. FY 22, mainly due to negative economic performance of Green Transportation division
• reclassified in short-term debt; however, Landi Renzo Group has received the waiver from financing banks both for FY 2022 and H1 2023, allowing to maintain most of short termdebt as long-term debt

Landi Renzo S.p.A. Headquarter Cavriago (RE), Italy

Landi Renzo - Company profile

BOARD OF DIRECTORS

Stefano Landi – Chairman Sergio Iasi – Deputy Chairman Andrea Landi – Director Silvia Landi – Director

SHARE INFORMATION

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	30/06/2023	30/06/2022
Revenues from sales and services Other revenues and income	151,805 1,024	144,446 484
Cost of raw materials, consumables and goods and change in inventories	-94,405	-87,949
Costs for services and use of third-party assets	-28,386	-26,836
Personnel costs	-25,124	-22,515
Allocations, write downs and other operating expenses	-5,226	-2,322
Gross Operating Profit	-312	5,308
Amortization, depreciation and impairment	-8,511	-8,724
Net Operating Profit	-8,823	-3,416
Financial income	447	55
Financial expenses	-5,399	-3,531
Exchange gains (losses)	-1,836	826
Income (expenses) from equity investments	-27	-138
Income (expenses) from joint venture measured using the equity method	20	143
Profit (Loss) before tax	-15,618	-6,061
Taxes	-5,316	-557
Net profit (loss) for the Group and minority interests, including:	-20,934	-6,618
Minority interests	21	214
Net profit (loss) for the Group	-20,955	-6,832
Basic earnings (loss) per share (calculated on 225,000,000 shares)	-0.0931	-0.0607
Diluted earnings (loss) per share	-0.0931	-0.0607

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	30/06/2023	31/12/2022
Non-current assets
Land, property, plant, machinery and other equipment	13,411	14,015
Development expenditure	10,027	11,141
Goodwill	80,132	80,132
Other intangible assets with finite useful lives	16,131	17,263
Right-of-use assets	13,305	13,618
Equity investments measured using the equity method	2,487	2,496
Other non-current financial assets	1,027	847
Other non-current assets	1,710	1,710
Deferred tax assets	9,219	14,109
Assets for derative financial instruments	372	103
Total non-current assets	147,821	155,434
Current assets
Trade receivables	65,093	73,559
Inventories	81,056	76,680
Contract work in progress	14,966	20,429
Other receivables and current assets	17,292	17,148
Current financial assets	25,161	412
Cash and cash equivalents	25,034	62,968
Total current assets	228,602	251,196
TOTAL ASSETS	376,423	406,630

12

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	30/06/2023	31/12/2022
Shareholders' Equity
Share capital	22,500	22,500
Other reserves	79,101	91,698
Profit (loss) for the period	-20,955	-14,281
Total Shareholders' Equity of the Group	80,646	99,917
Minority interests	6,537	5,967
TOTAL SHAREHOLDERS' EQUITY	87,183	105,884
Non-current liabilities Non-current bank loans	11,296	8,169
Other non-current financial liabilities	21,452	24,456
Non-current liabilities for right-of-use	11,099	11,314
Provisions for risks and charges	6,607	5,484
Defined benefit plans for employees	3,095	3,413
Deferred tax liabilities	2,931	2,910
Liabilities for derivative financial instruments	0	0
Total non-current liabilities	56,480	55,746
Current liabilities Bank financing and short-term loans	102,051	103,629
Other current financial liabilities	4,941	3,956
Current liabilities for right-of-use	3,140	3,196
Trade payables	94,554	98,033
Tax liabilities	2,386	3,697
Other current liabilities	25,688	32,489
Total current liabilities	232,760	245,000
	376,423	406,630
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES