Landi Renzo

Investor Presentation • May 16, 2023

Q1 2023 Financial Results

Cavriago, 15th May 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

Clean Tech BU grows in line with expectations, while uncertainty in developing Countries and delay in gross margin recovery slow down Green Transportation

Clean Tech
Solutions
(Infrastructure)

• Q1 results, with more than 10% growth in revenues, are in line with the expectations, with positive outlook for Q2
• Strong momentum in RNG and H2 infrastructure are driving up compressor solutions demand, with portfolio, book order and advanced negotiations already covering almost full year plan
• R&D and operation investments are ongoing to enlarge product portfolio and scale up production capacity

improvement
-------------

• For the Automotive BU, management's key target are gross margin and Net Working Capital improvement, with several projects focused on supply chain and procurement areas
• For the Infrastructure BU, multiple initiatives are also under development with main activities focusing on optimize purchasing efficiency and streamline internal processes

Landi Renzo Group's pro-forma¹ revenues in Q1 accounts for ~80 M€, with KLR and Clean Tech Solutions partly offsetting Automotive BU's negative results

• Group's revenues account for ~80 M€, with increasing weight of Hydrogen products and RNG solutions (infrastructure)
• Green Transportation (net of KLR) negative results are mainly driven by AM volume contraction and OEM lower gross margins (delays in new price definition)
• Volume contraction affects also KLR, with low EBITDA driven also by unfavorable product mix, but positive expectations remain for the rest of the year
• Conversely, Clean Tech Solutions results are in line with expectations, with strong potential for further improvements
• Green Transportation BU's negative results and seasonal increase of working capital for Infrastructure drives up NFP at 95,6M€

Full year pro-forma figures

Q1 revenue show a ~6% growth vs. 2022, however negative results of Green Transportation affect overall Group's performances

	Green Transportation	Clean Tech Solutions	LRG1
M€; %	Q1 2023	Q1 2023	Q1 2023	Q1 2022	delta	delta %
Revenues	48,1	23,1	71,2	66,9	+4,3	+6,4%
Adj. EBITDA	-2,5	1,6	-1,0	2,7	-3,6	-136,0%
% on rev.	-5,2%	6,7%	-1,4%	4,0%
EBITDA	-3,4	1,3	-2,1	1,8	-3,9	n.a.
% on rev.	-7,1%	5,7%	-2,9%	2,7%
EBIT	-6,9	0,6	-6,3	-2,5	-3,8	n.a.
% on rev.	-14,4%	2,7%	-8,8%	-3,7%
EBT			-10,1	-3,1	-7,0	n.a.
% on rev.			-14,1%	-4,6%
Net Result			-9,9	-3,1	-6,8	n.a.

• Revenues increase vs. 2022 (+4.3 M€ 6.4%) is driven by both divisions, supported by improving market conditions in the OEM business and fastgrowing demand for compressors
• Adj. EBITDA reflects the combined dynamics of different effects:
  • Clean Tech marginality is in line with last year results and shows improvements compared to Q4 2022
  • Margin dilution in Green Transportation, due to delayed price increase for largest OEM client and unfavorable product mix

Green Transportation shows an improvement in revenues

	M€ ; %	Q1 2023	Q1 2022	delta	delta %
	48,1 46,3 Revenues Adj. EBITDA -2,5 1,3 % on rev. -5,2% 2,9% Green EBIT -6,9 -3,1 % on rev. -14,4% -6,6%	+1,8	+3,8%
				-3,8	n.a.
Transportation (Automotive)				-3,9	n.a.
	NWC	47,8	45,0	+2,8
	NFP (1)	78,8	(*) 68,5	+10,3

(*) at 31/12/2022

• Revenues growth (3,8%) in spite of lower demand in developing countries for the AM segment, while both OEM – PC and OEM – M&HD segments show double-digit growth level vs. previous years
• Adj. EBITDA is influenced by lower AM volumes and general below-expectations marginality, due to delays in definition of a price adjustment with an important OEM client
• Lower AM demand and product mix shift vs. expectations generate an increase of inventory, driving up NWC compared to previous year's level, with mitigating measures already in place through an analytic plan (results already expected in Q2)

Indian JV KLR, not consolidated, slows down in Q1 due to natural gas price still to high; performance improvement expected in Q2

• Compared to previous years, KLR revenue grows only single-digit, affected by natural gas price at the pump, still above average levels after 2022 energy crisis
• KLR performances started improving in May, with Q2 positive outlook driven also by expected decrease of natural gas price at the pump

Growth of Clean Tech Solution grows steadily at double-digit vs. 2022, fueled by Renewable Natural Gas and Hydrogen strong momentum

	M€ ; %	Q1 2023	Q1 2022	delta	delta %	• Double-digit revenue increase (+12.1%) is driven by fast-growing demand for
	Revenues	23,1	20,6	+2,5	+12,1%	compressors and strong demand for Hydrogen and biomethane applications
Clean Tech	Adj. EBITDA % on rev.	1,6 6,7%	1,3 6,5%	+0,2	+16,3%	• Adj. EBITDA is improving compared to Q1 2022 and is expected to continue growing also thanks to initiatives in place to reduce
Solutions % on rev. 2,7% 2,9% NWC 14,1 15,7 -1,6 (*) NFP (1) 14,6 8,7 +5,9	EBIT	0,6	0,6	+0,0	+3,5%	direct cost and recover extra costs • Despite reduction of NWC compared to Q1 2022, PFN increase (vs. end of 2022) is in line with normal business cycle (mainly
		related to advance payments for equipment orders)
						• SAFE and Idro have launched a "Lean World

(*) at 31/12/2022

• driven by fast-growing demand for compressors and strong demand for Hydrogen and biomethane applications
• Adj. EBITDA is improving compared to Q1 2022 and is expected to continue growing also thanks to initiatives in place to reduce direct cost and recover extra costs
• Despite reduction of NWC compared to Q1 2022, PFN increase (vs. end of 2022) is in line with normal business cycle (mainly related to advance payments for equipment orders)
• SAFE and Idro have launched a "Lean World Class Manufacturing" initiative to improve project executions, process effectiveness, asset optimization and reduce waste on not value added activities (efficiency)

LRG closes Q1 2023 with a NFP Adj. of 93.4 M€, due to negative results of green Transportation and physiological increase of WC for Clean Tech Solutions

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

www.landirenzogroup.com www.landirenzo.com

WWW

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Landi Renzo - Company profile

BOARD OF DIRECTORS

Stefano Landi – Chairman Sergio Iasi – Deputy Chairman Cristiano Musi – 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: 220.281.064

Price as of 12/05/2023: €0,550

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts:

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

CONSOLIDATED P&L

of
(thousands Euro)
CONSOLIDATED INCOME STATEMENT	31/03/2023	31/03/2022
Revenues from sales and services	71,168	66,918
Other revenues and income	201	180
Cost of raw materials, consumables and goods and change in inventories	-46,189	-39,606
Costs for services and use of third-party assets	-13,729	-13,280
Personnel costs	-12,365	-11,133
Allocations, w rite dow ns and other operating expenses	-1,177	-1,250
Operating Profit Gross	-2,091	1,829
Amortization, depreciation and impairment	-4,193	-4,281
Net Operating Profit	-6,284	-2,452
Financial income	175	23
Financial expenses	-2,583	-1,218
(losses) Exchange gains	-1,089	620
Income (expenses) from equity investments	- 7	-107
Income (expenses) from joint measured using the equity method venture	-269	29
Profit (Loss) before tax	-10,057	-3,105
Taxes	118	-30
Net profit (loss) for the Group and minority interests, including:	-9,939	-3,135
Minority interests	-34	14
Net profit (loss) for the Group	-9,905	-3,149
Basic earnings (loss) per share (calculated on 225,000,000 shares)	-0.0440	-0.0280
Diluted earnings (loss) per share	-0.0440	-0.0280

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	31/03/2023	31/12/2022
Non-current assets
Land plant , machinery and other equipment , property,	13 627 ,	14 015 ,
Development expenditure	10 468 ,	11 141 ,
Goodw ill	80 132 ,	80 132 ,
Other finite useful intangible assets w ith lives	16 640 ,	17 263 ,
Right-of-use assets	12 816 ,	13 618 ,
Equity investments measured using the equity method	2 259 ,	2 496 ,
Other financial non-current assets	1 054 ,	847
Other non-current assets	1 720 ,	1 710 ,
Deferred tax assets	14 287 ,	14 109 ,
Non-current for derivative financial instruments assets	60	103
Total non-current assets	153,063	155,434
Current assets
Trade receivables	66 635 ,	73 559 ,
Inventories	82 102 ,	76 680 ,
Contract w ork in progress	15 298 ,	20 429 ,
Other receivables and current assets	18 773 ,	17 148 ,
Current for derivative financial instruments assets	289	412
Cash and cash equivalents	52 104 ,	62 968 ,
Total current assets	235,201	251,196
TOTAL ASSETS	388,264	406,630

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	31/03/2023	31/12/2022
Shareholders' Equity
Share capital	22,500	22,500
Other reserves	77,538	91,698
Profit (loss) for the period	-9,905	-14,281
Total Shareholders' Equity of the Group	90,133	99,917
Minority interests	6,004	5,967
TOTAL SHAREHOLDERS' EQUITY	96,137	105,884
Non-current liabilities
Non-current bank loans	84,965	8,169
Other financial liabilities non-current	24,356	24,456
for right-of-use Non-current liabilities	10,553	11,314
for Provisions risks and charges	5,253	5,484
Defined benefit plans for employees	3,358	3,413
Deferred liabilities tax	2,851	2,910
Liabilities for derivative financial instruments	130	0
Total liabilities non-current	131,466	55,746
Current liabilities
Bank financing and short-term loans	32,237	103,629
Other financial current liabilities	3,975	3,956
Current liabilities for right-of-use	3,157	3,196
Trade payables	93,396	98,033
Tax liabilities	2,453	3,697
Other liabilities current	25,443	32,489
Total liabilities current	160,661	245,000
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	388,264	406,630