Landi Renzo

Earnings Release • Mar 16, 2022

Full Year 2021 Financial Results

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

Landi Renzo Board of Directors approved a new strategic plan that sets the path for being a leading player along the full RNG(1) and H² value chain, from infrastructure to mobility

• Landi Renzo Group wants to play a significant role in the Energy transition as strategic specialist in the biomethane and hydrogen segments, with a complete offering along the entire value chain:
• Landi Renzo Strategic Mission
• o Clean Tech Solutions: compression solutions for natural/renewable gas and hydrogen along the entire pipeline, from post generation to grid injection, from gas transportation to distribution
• o Green transportation: complete range of products for the hydrogen & gas mobility, both for passenger cars and Mid&Heavy duty where the Group aims to be leader in H² high pressure components
• Thanks to the strengthened capital base, Landi Renzo Group is also willing to act as an aggregator of companies that stand out for their advanced technology and excellent market positioning in the field of RNG and H²

The Board has approved a Capital Increase, backed by current Shareholder and a new Strategic Investor

Landi Renzo strongly reinforced its positioning in high potential business segments through the consolidation of SAFE&CEC and the acquisition of Metatron and Idro Meccanica

	•	In August 2021 Landi Renzo announced the acquisition of Metatron, a leading T1 supplier of Hydrogen, CNG/LNG and H components, with a strong focus on 2 the Mid & Heavy Duty market
Green Transportation	•	Metatron has a market share of about 50% in M&HD segment for pressure regulators, with a client portfolio that includes the major HD OEM producers worldwide

• The acquisition strongly accelerates go-to-market in the fast growing segment for alternative fuels, with also significant synergies both in terms of cost and capex

Reinforce technology leadership in pressure regulator production and accelerate go to market, covering all alternative fuels in the M&HD segment

Playing a leading role in the expansion of Hydrogen Infrastructure from compression post generation to industrial segment and H² filling stations

Landi Renzo Group's pro-forma revenues approaching 300M€, with SAFE&CEC representing more than 30% of total revenues

Full year pro-forma figures

• Group revenues of ~300M€ driven by the growth of both mobility as well as SAFE&CEC, with Clean Tech Solutions business representing more than 30% of total revenues
• In the Green Transportation business impressive growth of the Indian JV, with further expected growth in the years to come
• Clean Tech Solutions growth driven by increasing sales of RNG and continuous growth of CNG solutions
• Starting revenues from Hydrogen applications, mainly for Mid&Heavy Duty
• Expected large investments on RNG and Hydrogen along the full value chain, with significant benefit for the Group

In 2021 Landi Renzo Group's consolidation perimeter was extended to include SAFE&CEC and Metatron

	Green Transportation(1)	Clean Tech Solutions(2)	LRG
M€; %	2021 FY	May-Dec 2021	2021 FY	2020 FY	delta	delta %
Revenues	172,9	69,1	242,0	142,5	+99,,5	+69,9%
Adj. EBITDA	7,2	7,4	14,6	8,0	+6,6	+82,3%
% on rev.	4,2%	10,7%	6,0%	5,6%
EBITDA	5,5	7,1	12,6	6,7	+6,0	+89,6%
% on rev.	3,2%	10,2%	5,2%	4,7%
EBIT	-8,3	5,4	-2,9	-5,5	+2,6	n.a.
% on rev.	-4,8%	7,8%	-1,2%	-3,9%
EBT			1,8	-11,4	+13,2	n.a.
% on rev.			0,7%	-8,0%
Net Result			0,5	-7,8	+8,3	n.a.

Highlights

• SAFE&CEC (as of 1st May) and Metatron (as of 1 st August) are included in LRG's consolidated financial statements
• Adj. EBITDA up 82,3% to 14,6M€, with a significant contribution from SAFE&CEC consolidation (7,4M€)
• Net Result positively impacted by a consolidation profit connected to the fair value evaluation of SAFE&CEC and calculated as a comparison between the new "fair value" and "equity" method (8,8M€)

	M€ ; %	2021 FY	2020 FY	delta	delta %
	Revenues	19,6	9,3	+10,3	+110,1%
	Adj. EBITDA	3,6	0,5	+3,1	n.a.
	% on rev.	18,2%	5,5%
KLR(1)	EBIT	3,3	0,4	+2,9	n.a.
	% on rev.	17,1%	4,0%
	NWC	3,5	1,8	+1,7
	Capex	1,5	0,0	+1,5
	NFP	1,2	1,0	+0,2

The Indian Landi Renzo JV (KLR) is consolidated with the equity method

Highlights

• The Indian market is strongly growing, thanks to government plans to support the CNG development, targeting to increase the share of Natural Gas as energy source from 6,2% to 15% mix by 2030, reaching 98% of the population with the distribution network
• The strong growth of KLR turnover is driven by the tight relationship with the leading producer of CNG-powered vehicles in India and a share higher than 60% on different components
• EBITDA level in line with best practice
• Expected strong volume growth in 2022 and coming years
• The Group is working on the full consolidation of KLR

SAFE&CEC confirms its continuous growth, with better profitability and positive cash generation

	M€ ; %	2021 FY(1)	2020 FY(1)	delta	delta %
	Revenues	92,3	79,5	+12,9	+16,2%
	Adj. EBITDA	8,3	5,1	+3,3	+64,0%
	% on rev.	9,0%	6,4%
Clean Tech Solutions	EBIT	4,6	2,2	+2,4	+109,0%
	% on rev.	5,0%	2,8%
	NWC	9,6	12,4	-2,8
	Capex	1,7	1,1	+0,6
	NFP (2)	4,0	9,8	-5,8

Highlights

• Revenue increased 16,2% YoY, driven by:
• o a continuous development of the gas infrastructures, with a growing presence in North America, Europe and MEA
• o increase of RNG applications both in Europe and in the United States, where the Group has increased its market share, being supplier of leading players
• Adj. EBITDA outperforms the growth of revenues thanks to value added recognition by customers as well as a tighter control on operating costs
• NFP significantly improved thanks to Working Capital optimization
• In December 2021 the Company issued a 7M€ bond to finance the acquisition of Idro Meccanica, which will be fully consolidated from Q1 2022

Net debt has grown mainly due to the financing of Metatron's acquisition and to the new consolidated perimeter

Highlights

• Net debt includes also the effect of Metatron and SAFE&CEC
• NFP is impacted by:
• o Long-term debt reclassified as of December 2021 as short-term because of IFRS applicable rules. In February 2022 the Group has received the waiver from banks, so that in Q1 2022 an important portion of short term-debt will be classified as long-term
• o Financial lease increase due to the consolidation of SAFE&CEC and Metatron
• o The debt for the acquisition of Metatron (25,4M€) is related to the payment to be done end of 2021

M€

2022 Forecast

Green Transportation

• Current oil cost supports After Market global demand increase, with increasing book order • OEM still affected by shortages, on all segments • Increasing opportunities on Hydrogen, with different RFQs ongoing globally for different applications, from LCV to truck, from H ICE to FCEV 2 • The Indian market continues growing, both with current OEM customers, and with new important negotiations on Mid&Heavy Duty

SAFE&CEC (Clean Tech Solutions)

• Current portfolio, book order and advanced negotiations are double digit higher than in 2021 (more than 80M€), 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 along the full value chain (from oil free compressor to compressors up to 1MW to CO compression) 2

• Very strong efforts to reduce the impact from components shortage, especially for electronics
• Different actions with Group coordination put in place

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

www.landirenzogroup.com www.landirenzo.com

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Landi Renzo - Company profile

BOARD OF DIRECTORS

Stefano Landi – Chairman Giovannina Domenichini – Honorary Chairman Cristiano Musi - CEO Angelo Iori – Director Silvia Landi - Director Dario Melpignano – Independent Director Sara Fornasiero - Independent Director Vincenzo Russi – Independent Director Paolo Ferrero - 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 14/03/2022: €0.792

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CONSOLIDATED P&L

(thousands of Euro)
CONSOLIDATED INCOME STATEMENT	31/12/2021	31/12/2020
Revenues from sales and services	241,994	142,455
Other revenues and income	2,610	313
Cost of raw materials, consumables and goods and change in inventories	-150,272	-84,212
Costs for services and use of third-party assets	-43,075	-27,844
Personnel costs	-34,920	-22,398
Allocations, w rite dow ns and other operating expenses	-3,722	-1,662
Gross Operating Profit	12,615	6,652
Amortization, depreciation and impairment	-15,556	-12,193
Net Operating Profit	-2,941	-5,541
Financial income	217	298
Financial expenses	-4,344	-3,310
Exchange gains (losses)	-362	-2,827
Income (expenses) from equity investments	8,581	0
Income (expenses) from joint venture measured using the equity method	620	-11
Profit (Loss) before tax	1,771	-11,391
Taxes	-1,226	3,541
Net profit (loss) for the Group and minority interests, including:	545	-7,850
Minority interests	1,522	-188
Net profit (loss) for the Group	-977	-7,662
Basic earnings (loss) per share (calculated on 112,500,000 shares)	-0.0087	-0.0681
Diluted earnings (loss) per share	-0.0087	-0.0681

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	31/12/2021	31/12/2020
Non-current assets
Land, property, plant, machinery and other equipment	14,977	13,212
Development expenditure	12,222	9,506
Goodw ill	75,341	30,094
Other intangible assets w ith finite useful lives	16,711	10,860
Right-of-use assets	11,991	4,975
Equity investments measured using the equity method	2,028	22,509
Other non-current financial assets	882	921
Other non-current assets	2,556	2,850
Deferred tax assets	13,484	12,201
Total non-current assets	150,192	107,128
Current assets
Trade receivables	66,048	39,353
Inventories	68,896	42,009
Contract w ork in progress	15,653	0
Other receivables and current assets	14,443	6,712
Other current financial assets	0	2,801
Cash and cash equivalents	28,039	21,914
Total current assets	193,079	112,789
TOTAL ASSETS	343,271	219,917

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	31/12/2021	31/12/2020
Shareholders' Equity
Share capital	11,250	11,250
Other reserves	44,615	53,199
Profit (loss) for the period	-977	-7,662
Total Shareholders' Equity of the Group	54,888	56,787
Minority interests	5,738	-473
TOTAL SHAREHOLDERS' EQUITY	60,626	56,314
Non-current liabilities
Non-current bank loans	10,174	68,181
Other non-current financial liabilities	9,320	408
Non-current liabilities for right-of-use	10,197	2,871
Provisions for risks and charges	4,535	2,897
Defined benefit plans for employees	3,977	1,556
Deferred tax liabilities	1,452	297
Liabilities for derivative financial instruments	99	458
Total non-current liabilities	39,754	76,668
Current liabilities
Bank financing and short-term loans	103,408	23,108
Other current financial liabilities	274	378
Current liabilities for right-of-use	2,624	2,228
Trade payables	82,886	53,509
Tax liabilities	3,758	2,677
Other current liabilities	49,941	5,035
Total current liabilities	242,891	86,935
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	343,271	219,917