Emak

Investor Presentation • Oct 13, 2021

EMAK GROUP VIRTUAL STAR CONFERENCE - Fall Edition 2021

• Group overview
• A look to the future
• H1 2021 Results

• Appendix

• A look to the future

• H1 2021 results
• Appendix

Emak at a glance

A global player in three businesses

Global presence

Outdoor Power Equipment

Pumps & High Pressure Water Jetting

Components & Accessories

Applications and sectors

Trimmers for cutting grass and brush

GARDENING & FORESTRY

Lawn mowers and tractors for gardens and parks

Chainsaws for pruning, felling, limbing, from DIY to professional

Pumps and components for boom sprayers

Pumps for orchard airblast spraying for high pressure or low volume treatments

Hand spraying for applications inside green houses

Pumps and accessories for pressure cleaners, from compact to professional machines

INDUSTRIAL

CLEANING

Pumps, units and accessories for application in the shipyard and in the offshore sector

Pumps, units and accessories for application in construction sites

equipment from small to professional models

• Group overview
• A look to the future
• H1 2021 Results
• Appendix

Research & Development

New 40V battery powered range

New R&D center (Bagnolo in Piano) VRA technology

• Group overview
• A look to the future
• H1 2021 Results
• Appendix

H1 2021 highlights

• Solid performance in all segments

• Volume growth, price policy, operating costs containment

• Higher raw materials and logistics costs

• Strong cash flow from operations

• Improved working capital level

FY sales forecast review +17%/+21% (vs prev +15%/+20%)

H1 2021 results

€/000	H1 2021	H1 2020	ch. %	Q2 2021	Q2 2020	ch. %
Revenues from sales	332,964	247,496	34.5%	170,083	129,529	31.3%
EBITDA Adj. % on revenues	53,702 16.1%	33,220 13.4%	61.7%	27,327 16.1%	19,193 14.8%	42.4%
EBIT % on revenues	42,180 12.7%	21,813 8.8%	93.4%	21,011 12.4%	13,438 10.4%	56.4%
Net profit	31,608	10,912	189.7%	16,328	7,079	130.7%

Revenues: organic growth for 35%, change in the scope of consolidation for 2.3%, the negative effect of conversion rates for 2.8%.

EBITDA Adj: volume growth and containment of operating costs' incidence. Higher personnel costs due to increase in production volumes, increase in raw material and logistic costs.

Net profit: positive forex and lower tax rate thanks to fiscal relief. In H1 2020 negative impact of forex and the exercise of options on equity investments

€/000	30.06.2021	31.12.2020	30.06.2020
Net non-current assets	186,808	183,197	176,859
Net working capital	189,911	165,655	189,661
Net capital employed	376,719	348,852	366,520
Net financial position	(125,225)	(126,552)	(149,593)
Net financial position (net of IFRS 16)	(96,930)	(97,678)	(120,728)
Total equity	251,494	222,300	216,927

Net working capital: seasonal increase compared to 31.12.20, improved management compared to 30.06.20

Net financial position: strong cash flow from operations considering investments for 7.7 million and dividend distribution for € 7.4 million.

Outdoor Power Equipment

€/000	H1 2021	H1 2020	Var. %	Q2 2021	Q2 2020	Var. %
Europa	102,842	72,616	41.6	52,765	37,753	39.8
Americas	4,840	2,717	78.1	2,452	1,218	101.3
Asia, Africa e Oceania	10,484	9,709	8.0	5,831	5,204	12.0
Total	118,166	85,042	39.0	61,048	44,175	38.2

SALES

✓ Europe: significant increase especially in Italy, France, Poland

and Spain

• ✓ Americas: overall increase, especially in Q2.
• ✓ Asia, Africa and Oceania: growth in China and Far East more

than offset decrease in Turkey.

€/000	30.06.2021	30.06.2020
Sales to third parties	118,166	85,042
Intersegment sales	184	409
Revenues from sales	118,350	85,451
Ebitda Adj	13,308	5,323
Ebitda Adj / Revenues from sales%	11.2%	6.2%
Ebit	9,202	1,449
Ebit / Revenues from sales%	7.8%	1.7%

EBITDA Adj

• ✓ Increase in sales volumes
• ✓ Operating costs in line
• ✓ Higher personnel costs related to volumes' growth

Pumps & High Pressure Water Jetting

€/000	H1 2021	H1 2020	Var. %	Q2 2021	Q2 2020	Var. %
Europa	71,476	51,963	37.6	34,007	28,093	33.4
Americas	41,126	35,279	16.6	21,007	17,580	14.4
Asia, Africa e Oceania	16,048	12,081	32.8	8,158	6,718	17.4
Totale	128,650	99,323	29.5	63,172	52,391	25.0

SALES

• ✓ Europe: growth driven by Italy, France, UK, Poland, Russia and
• Spain. Strong development of of online sales.
• ✓ Americas: positive trend in North America, Brazil and Chile.
• ✓ Asia, Africa and Oceania: positive performance in China and Far East.

€/000	30.06.2021	30.06.2020
Sales to third parties	128,650	99,323
Intersegment sales	1,714	1,252
Revenues from sales	130,364	100,575
Ebitda Adj	22,581	16,265
Ebitda Adj / Revenues from sales%	17.3%	16.2%
Ebit	19,349	12,146
Ebit / Revenues from sales%	14.8%	12.1%

EBITDA Adj

✓ Increase in sales volumes

Components & Accessories

€/000	H1 2021	H1 2020	Var. %	Q2 2021	Q2 2020	Var. %
Europa	48,690	37,588	29.5	24,831	19,361	28.3
Americas	26,075	17,670	47.6	12,975	8,411	54.3
Asia, Africa e Oceania	11,383	7,873	44.6	5,751	5,191	10.8
Totale	86,148	63,131	36.5	43,557	32,963	32.1

SALES

• ✓ Europe: generalized growth for all product lines.
• ✓ Americas: good performance of local companies and new scope of consolidation (Agres)
• ✓ Asia, Africa and Oceania: growth driven by China, Japan, Australia.

€/000	30.06.2020	30.06.2020
Sales to third parties	86,148	63,131
Intersegment sales	5,643	4,465
Revenues from sales	91,791	67,596
Ebitda Adj	19,977	12,664
Ebitda Adj / Revenues from sales%	21.8%	18.7%
Ebit	15,793	9,250
Ebit / Revenues from sales%	17.2%	13.7%

EBITDA Adj

• ✓ Increase in sales volumes
• ✓ Contribution of scope of consolidation
• ✓ Negative trend in raw material prices

• ✓ Higher personnel costs

• Group overview

• A look to the future
• H1 2021 Results
• Appendix

Shareholders and Governance

Emak has been listed on the Italian Stock Exchange since 1998 and since 2001 on STAR segment (dedicated to mid-size companies that adhere to strict requirements appreciated by global investors in terms of governance, liquidity, transparency).

Yama is an industrial holding whose shareholders are the families that founded the Group in late 60's.

Seven families hold 97% of Yama's share capital, with shareholdings from 6% to 23%.

Board of Directors
Bellamico Fausto	Chairman & CEO
Burani Aimone	Vice Chairman & CFO
Bartoli Luigi	Executive director
Baldi Francesca	Director
Bartoli Ariello	Director
Becchi Paola	Director
Ferrari Giuliano	Director
Salsapariglia Marzia	Director
Spaggiari Vilmo	Director
Zambelli Guerrino	Director
Iotti Elena	Independent Director
Lanza Alessandra	Independent Director
Livatino Massimo	Lead Independent Director

Chairman

Deloitte & Touche S.p.A.

H1 2021 - Results by business segment

	OUTDOOR POWER EQUIPMENT		PUMPS AND HIGH PRESSURE WATER JETTING		COMPONENTS AND ACCESSORIES		Other not allocated / Netting		Consolidated
€/000	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020
Sales to third parties	118,166	85,042	128,650	99,323	86,148	63,131			332,964	247,496
Intersegment sales	184	409	1,714	1,252	5,643	4,465	(7,541)	(6,126)
Revenues from sales	118,350	85,451	130,364	100,575	91,791	67,596	(7,541)	(6,126)	332,964	247,496
Ebitda	13,235	5,239	23,063	16,191	19,705	12,566	(2,164)	(1,032)	53,839	32,964
Ebitda/Total Revenues %	11.2%	6.1%	17.7%	16.1%	21.5%	18.6%			16.2%	13.3%
Ebitda before non ordinary expenses	13,308	5,323	22,581	16,265	19,977	12,664	(2,164)	(1,032)	53,702	33,220
Ebitda before non ordinary expenses/Total Revenues %	11.2%	6.2%	17.3%	16.2%	21.8%	18.7%			16.1%	13.4%
Operating result	9,202	1,449	19,349	12,146	15,793	9,250	(2,164)	(1,032)	42,180	21,813
Operating result/Total Revenues %	7.8%	1.7%	14.8%	12.1%	17.2%	13.7%			12.7%	8.8%
Net financial expenses (1)									(786)	(6,110)
Profit befor taxes									41,394	15,703
Income taxes									(9,786)	(4,791)
Net profit									31,608	10,912
Net profit/Total Revenues%									9.5%	4.4%
(1) Net financial expenses includes the amount of Financial income and expenses, Exchange gains and losses and the amount of the							Income from equity investment
STATEMENT OF FINANCIAL POSITION Net debt	30.06.2021 3,906	31.12.2020 10,780	30.06.2021 90,192	31.12.2020 87,031	30.06.2021 31,127	31.12.2020 28,741	30.06.2021	31.12.2020	30.06.2021	31.12.2020
Shareholders' Equity	186,422	178,820	78,973	66,031	63,754	55,096	0	0	125,225	126,552
Total Shareholders' Equity and Net debt	190,328	189,600	169,165	153,062	94,881	83,837	(77,655) (77,655)	(77,647) (77,647)	251,494	222,300
	128,685	130,336	87,192	86,970	46,406	41,397	(75,475)	(75,506)	376,719	348,852
Net non-current assets (2)	61,643	59,264	81,973	66,092	48,475	42,440	(2,180)	(2,141)	186,808	183,197
Net working capital	190,328	189,600	169,165	153,062	94,881	83,837	(77,655)	(77,647)	189,911	165,655
Total net capital employed (2) The net non-current assets of the Outdoor Power Equipment area includes the amount of Equity investments for 76,074 thousand						Euro			376,719	348,852
OTHER STATISTICS	30.06.2021	31.12.2020	30.06.2021	31.12.2020	30.06.2021	31.12.2020	30.06.2021	31.12.2020	30.06.2021	31.12.2020
Number of employees at period end	729	738	805	777	613	613	8	8	2,155	2,136
OTHER INFORMATIONS	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020	30.06.2021	30.06.2020
Amortization, depreciation and impairment losses	4,033	3,790	3,714	4,045	3,912	3,316			11,659	11,151
Investment in property, plant and equipment and in

intangible assets 2,058 2,143 1,722 1,823 3,956 4,974 7,736 8,940

H1 2021 - Consolidated income statement

Year 2020	€/000	H1 2021	H1 2020
469,778	Revenues from sales	332,964	247,496
4,152	Other operating incomes	2,151	1,096
9,996	Change in inventories	4,469	(5,779)
(258,006)	Raw materials, consumables and goods	(180,198)	(126,507)
(84,588)	Personnel expenses	(50,319)	(41,355)
(85,698)	Other operating costs and provisions	(55,228)	(41,987)
(22,692)	Amortization, depreciation and impairment losses	(11,659)	(11,151)
32,942	Operating result	42,180	21,813
727	Financial income	366	161
(5,164)	Financial expenses	(2,881)	(2,529)
(3,547)	Exchange gains and losses	1,729	(2,229)
(2,144)	Income from/(expenses on) equity investment	-	(1,513)
22,814	Profit before taxes	41,394	15,703
(3,202)	Income taxes	(9,786)	(4,791)
19,612	Net profit (A)	31,608	10,912
(312)	(Profit)/loss attributable to non controlling interests	(477)	(95)
19,300	Net profit attributable to the Group	31,131	10,817
0.118	Basic earnings per share	0.190	0.066
0.118	Diluted earnings per share	0.190	0.066

H1 2021 - Consolidated balance sheet - Assets

31.12.2020	€/000	30.06.2021	30.06.2020
	Non-current assets
76,409	Property, plant and equipment	77,175	76,641
23,069	Intangible assets	22,623	21,342
27,925	Rights of use	27,132	27,895
67,464	Goodwill	69,146	62,401
8	Equity investments in other companies	8	8
-	Equity investments in associates	-	2,848
9,063	Deferred tax assets	9,587	8,216
808	Other financial assets	1,056	2,438
57	Other assets	57	58
204,803	Total non-current assets	206,784	201,847
	Current assets
163,602	Inventories	170,738	149,247
111,082	Trade and other receivables	156,646	134,190
7,516	Current tax receivables	6,031	4,268
229	Other financial assets	139	137
506	Derivative financial instruments	833	327
99,287	Cash and cash equivalents	84,218	85,864
382,222	Total current assets	418,605	374,033
587,025	TOTAL ASSETS	625,389	575,880

H1 2021 - Consolidated balance sheet - Liabilities

31.12.2020	€/000	30.06.2021	30.06.2020
	Shareholders' Equity
220,137	Shareholders' Equity of the Group	248,806	214,974
2,163	Non-controlling interests	2,688	1,953
222,300	Total Shareholders' Equity	251,494	216,927
	Non-current liabilities
135,456	Loans and borrowings due to banks and other lenders	120,533	139,571
24,058	Liabilities for leasing	23,558	23,971
6,465	Deferred tax liabilities	6,500	8,318
7,608	Employee benefits	7,564	7,918
2,382	Provisions for risks and charges	2,540	2,337
4,343	Other non-current liabilities	2,315	3,977
180,312	Total non-current liabilities	163,010	186,092
	Current liabilities
110,554	Trade and other payables	133,844	89,460
4,764	Current tax liabilities	8,136	6,961
62,032	Loans and borrowings due to banks and other lenders	62,082	69,088
4,816	Liabilities for leasing	4,737	4,894
1,020	Derivative financial instruments	561	835
1,227	Provisions for risks and charges	1,525	1,623
184,413	Total current liabilities	210,885	172,861

587,025 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 625,389 575,880

Synthesis of results

€m	2011	2011 PF	2012	2013	2014	2015	2016	2017	2017 PF	2018	2019 no IFRS 16	2019	2020
Sales	204.4	357.0	354.8	355.0	354.8	381.6	391.9	422.2	461.8	452.8	434.0	434.0	469.8
EBITDA adj	19.6	37.8	31.7	34.2	33.1	37.5	40.5	45.6	52.5	50.8	40.9	46.9	56.3
margin	9.6%	10.6%	8.9%	9.6%	9.3%	9.8%	10.3%	10.8%	11.4%	11.2%	9.4%	10.8%	12.0%
EBITDA	17.5	35.8	28.8	34.2	31.5	35.8	39.5	43.9	50.1	49.4	40.1	46.1	55.6
margin	8.6%	10.0%	8.1%	9.6%	8.9%	9.4%	10.1%	10.4%	10.8%	10.9%	9.2%	10.6%	11.8%
EBIT	10.4	23.7	16.6	22.4	20.0	23.3	21.9	30.0	35.8	34.0	21.5	22.0	32.9
margin	5.1%	6.6%	4.7%	6.3%	5.6%	6.1%	5.6%	7.1%	7.8%	7.5%	5.0%	5.1%	7.0%
Net profit	5.8	13.0	8.6	10.5	10.2	9.0	17.7	16.4	20.6	25.6	13.4	13.1	19.6
Margin	2.8%	3.6%	2.4%	3.0%	2.9%	2.4%	4.5%	3.9%	4.5%	5.7%	3.1%	3.0%	4.2%
FCF from operations *	12.9	25.0	20.8	22.4	21.7	21.5	35.3	30.4	34.9	41.1	32.1	37.2	42.3
Net Equity	140.1	140.1	145.0	150.8	160.1	168.5	181.7	187.5	187.5	205.8	212.2	211.5	222.3
Net fin. debt	97.3	97.3	99.9	76.4	79.0	99.4	80.1	125.3	125.3	117.4	116.6	146.9	126.6
Debt/Equity	0.7	0.7	0.7	0.5	0.5	0.6	0.4	0.7	0.7	0.6	0.5	0.7	0.6
Debt/EBITDA adj	5.0	2.6	3.1	2.2	2.4	2.7	2.0	2.7	2.4	2.3	2.8	3.1	2.2

* Calculated by adding the items "Net profit" plus "Amortization, depreciation and impairment losses"

2011: Acquisition of Epicenter (Ukraine), Tecomet, Comet, Sabart and Raico 2012: Start-up of Emak do Brazil, acquisition of Valley in USA 2014: Acquisition of Speed Industrie Sarl (Marocco), S.I.Agro Mexico, Geoline Electronic, Master Fluid, Speed South America (Chile) 2015: Acquisition of Lemasa (Brazil) 2016: Acquisition of 30% of Cifarelli S.p.A. 2017: Acquisition of Lavorwash Group 2018: Sale of Raico; acquisition of Spraycom 2019: acquisition of 30% of Agres (Brazil) 2020: acquisition of 51% of Markusson (Sweden); increase in Agres to 91%.

Aimone Burani, the executive responsible for the preparation of the corporate accounting documents, declares and certifies in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in this presentation correspond to the underlying accounting documents, records and accounting entries.

Emak S.p.A 42011 Bagnolo in Piano (RE) Italy www.emakgroup.com www.linkedin.com/company/emap-s-p-a-

Speakers

Mr. Fausto Bellamico – Chairman and CEO Mr. Aimone Burani – Deputy Chairman and CFO Mr. Andrea La Fata – Investor Relator andrea.lafata@emak.it - 0039-0522.956.332