Landi Renzo

Quarterly Report • May 16, 2022

Q1-2022 Financial Results

Cavriago, 16th May 2022

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

In a challenging economic scenario Landi Renzo has focused on the opportunities and on operation effectiveness

Green Transportation (Automotive)	• Current oil cost supports After Market global demand increase
	• OEM still affected by shortages, on all segments, but LPG sales remain consistent
	• M&HD market stable, with China suffering from LNG high cost
	• Increasing opportunities on Hydrogen, with different negotiation ongoing worldwide
	• The CNG market in India is maintaining a steady growth

	Clean Tech Solutions (Infrastructure)	• Current portfolio, book order and advanced negotiations projecting a further increase of revenues in the year, with increasing demand for RNG solutions from all over the world
		• Idro Meccanica book order on hydrogen is also growing with increasing demand
		• The Group is investing in new compressor solutions that support the energy transition (oil free technology, up to
		1MW power and CO compression) 2

• Strong focus in managing supply chain shortage and material cost increase
• Different project ongoing for the integration of new acquired businesses (Metatron and Idro Meccanica), to better exploit synergies
  • Continuous focus on fixed cost control

Q1 results growing by 33,7M€, thanks to the expanded perimeter, with improvement also in terms of Adj. Ebitda

	Green Transportation	Clean Tech Solutions	LRG
M€; %	Q1 2022	Q1 2022	Q1 2022	Q1 2021	delta	delta %
Revenues	46,3	20,6	66,9	33,3	+33,7	+101,2%
Adj. EBITDA	1,3	1,3	2,7	0,5	+2,2	n.a.
% on rev.	2,9%	6,5%	4,0%	1,5%
EBITDA	0,5	1,3	1,8	0,4	+1,5	n.a.
% on rev.	1,2%	6,2%	2,7%	1,1%
EBIT	-3,1	0,6	-2,5	-3,0	+0,5	n.a.
% on rev.	-6,6%	2,9%	-3,7%	-9,0%
EBT			-3,1	-4,1	+1,0	n.a.
% on rev.			-4,6%	-12,4%
Net Result			-3,1	-4,1	+1,0	n.a.

• Revenues growth thanks to the new perimeter, as well as to the increase in both automotive and infrastructure business segments
• Adj. EBITDA benefits from the contribution of SAFE&CEC, with also green transportation doing better compared to Q1 2021. Supply chain shortage and energy cost increase impact on both businesses, eroding full potential revenues and profitability

The Automotive business highlights a recovery in both the OEM and AM channel

	M€ ; %	Q1 2022	Q1 2021(1)	delta	delta %	Highlights
	Revenues	46,3	33,3	+13,0	+39,2%
	Adj. EBITDA	1,3	0,5	+0,8	+161,2%
Green	% on rev.	2,9%	1,5%
Transportation (Automotive)	EBIT	-3,1	-3,0	-0,1	n.a.
	% on rev.	-6,6%	-9,0%
	NWC	45,0	35,3	+9,7		23,3% in Q1 2022)
	NFP (2)	111,7	91,1 (*)	+20,6

(*) at 31.12.2021

• Revenue increased by 39,2% YoY, driven by the good performance of all channels: AM, especially in LatAm and Asia, OEM, due to the growth of LPG sales in Europe and by the addition of Metatron revenues (2,9M€)
• Adj. EBITDA improves thanks to the higher volumes and to a limited increase in Fixed Costs
• NWC increase is mainly due to the new consolidation perimeter, improving in terms of % on revenues 12M rolling (25,5% in Q1 2021 vs

The Indian JV KLR, not consolidated, keeps growing with the Indian CNG market, which is expected to maintain its positive trend also in the coming years

• The CNG market keeps growing at a steady pace, with some OEM producers forced to delay shipping of new CNG vehicles due to the shortage of electronic components
• KLR revenues driven by the increasing request of the leading OEM customers, which are expanding the CNG carline offering

	M€ ; %	Q1 2022	Q1 2021(1)	delta	delta %
	Revenues	20,6	17,6	+3,0	+17,5%
	Adj. EBITDA	1,3	0,4	+0,9	+159%
	% on rev.	6,5%	2,5%
Clean Tech Solutions	EBIT	0,6	-0,2	+0,8	n.a.
	% on rev.	2,9%	-1,2%
	NWC	15,7	14,4	+1,3
	NFP (2)	15,3	4,0(*)	11,3

(*) at 31.12.2021

• Revenue increased 17,5% YoY, driven by the RNG projects in North America, UK and France, with growing opportunities in H² . Delay in revenues to Q2 because of the shortage of components
• Adj. EBITDA improvement, but still below the 10% target, due to the delay in job completion
• NWC increase mainly due to the need of stocking larger quantities of low-availability components and by the increased volumes
• NFP impacted by the acquisition of Idro Meccanica and by the NWC increase

Landi Renzo Group's net debt has grown mainly due to a new loan of 19,5M€ and by the acquisition of Idro Meccanica

M€

• NFP entails the debt for the acquisition of Idro Meccanica and Metatron
• The debt for Metatron share capital has been partially converted into a 18,1M€ loan by Girefin, which is classified under long-term debts
• Short-term debts of 2021 have been reclassified under long-term debts after upon request to the financing banks through consent letter
• Growth of the NFP is mainly to be ascribed to the 19,5M€ loan by Invitalia

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

SHAREHOLDING

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts:

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

SHARE INFORMATION

Euronext STAR Milan segment of Borsa Italiana N. of shares outstanding: 112.500.000 Price as of 13/05/2022: €0,83

CONSOLIDATED P&L

(thousands of Euro)
CONSOLIDATED INCOME STATEMENT	31/03/2022	31/03/2021
Revenues from sales and services	66,918	33,259
Other revenues and income	180	134
Cost of raw materials, consumables and goods and change in inventories	-39,606	-19,311
Costs for services and use of third-party assets	-13,280	-7,614
Personnel costs	-11,133	-5,603
Allocations, w rite dow ns and other operating expenses	-1,250	-508
Gross operating profit	1,829	357
Amortization, depreciation and impairment	-4,281	-3,336
Net operating profit	-2,452	-2,979
Financial income	23	54
Financial expenses	-1,218	-821
Exchange gains (losses)	620	-511
Income (expenses) from equity investments	-107	0
Income (expenses) from joint venture measured using the equity method	29	182
Profit (loss) before tax	-3,105	-4,075
Taxes	-30	-55
Net profit (loss) for the Group and minority interests, including:	-3,135	-4,130
Minority interests	14	30
Net profit (loss) for the Group	-3,149	-4,160
Basic earnings (loss) per share (calculated on 112,500,000 shares)	-0.0280	-0.0370
Diluted earnings (loss) per share	-0.0280	-0.0370

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	31/03/2022	31/12/2021
Non-current assets
Land , property, plant , machinery and other equipment	14,743	14,977
Development costs	11,521	12,222
Goodw ill	75,341	75,341
Other intangible w ith finite useful lives assets	16,272	16,711
Right-of-use assets	15,471	11,991
Equity investments measured using the equity method	2,057	2,028
Equity investments in controlled companies	6,400	0
Other financial non-current assets	812	882
Other non-current assets	2,556	2,556
Deferred tax assets	13,866	13,484
Assets for derivative financial instruments	413	0
Total non-current assets	159,452	150,192
Current assets
Trade receivables	66,332	66,048
Inventories	75,731	68,896
Contract w ork in progress	19,811	15,653
Other receivables and current assets	15,037	14,443
Other financial current assets	520	0
Cash and cash equivalents	36,379	28,039
Total current assets	213,810	193,079
TOTAL ASSETS	373,262	343,271

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY LIABILITIES AND	31/03/2022	31/12/2021
Shareholders' Equity
Share capital	11,250	11,250
Other reserves	44,446	44,615
Profit (loss) for the period	-3,149	-977
Total Shareholders' equity of the Group	52,547	54,888
Minority interests	6,040	5,738
TOTAL SHAREHOLDERS' EQUITY	58,587	60,626
Non-current liabilities
Non-current bank loans	61,820	10,174
Other financial liabilities non-current	46,870	9,320
for right-of-use Non-current liabilities	13,111	10,197
Provisions for risks and charges	4,784	4,535
Defined benefit plans for employees	3,850	3,977
Deferred tax liabilities	1,655	1,452
Liabilities for derivative financial instruments	1	99
Total non-current liabilities	132,091	39,754
Current liabilities
Bank financing and short-term loans	54,881	103,408
Other financial liabilities current	274	274
Current liabilities for right-of-use	3,141	2,624
Trade payables	84,535	82,886
Tax liabilities	3,898	3,758
Other liabilities current	35,855	49,941
Total current liabilities	182,584	242,891
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	373,262	343,271