Landi Renzo

Investor Presentation • Nov 13, 2020

9M 2020 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

9M results significantly affected by Covid-19, yet with a positive performance in Q3

Landi Renzo and SAFE&CEC are keeping control over strategic activities, being ready to capture the full benefits of recovering markets

	being ready to capture the full benefits of recovering markets
MARKET RECOVERY	R&D	PROFIT & LIQUIDITY
• Q3 saw the global automotive business return above Q1 levels	• R&D projects continued keeping the focus on CNG/LNG and Hydrogen applications	• LRG signed a six-year 21M loan with a pool of banks (BPM, Intesa, Unicredit) covered by a
• The commercial initiatives undertaken allowed Landi Renzo to achieve quarterly	• LNG pressure regulator for HD has successfully passed the winter test for a major Chinese HD OEM	90% SACE guarantee, with two years of grace period • Costs containment and
sales exceeding Q3 2019 in OEM, while AM is down 10,9% compared to Q3 2019 •	• The cooperation with Hydrogenics for the developments of hydrogen components is expanding to new projects	efficiency initiatives (SG&A reduced by 3,9M€ vs. same period in 2019) have secured
Growing sales portfolio in Q4 vs. Q3	• Launched a New R&D stream on hydrogen applications for	the economical and financial situation of the company
A recovery in AM is expected by Q2 2021	Passenger Cars

• levels undertaken allowed Landi Renzo to achieve quarterly sales exceeding Q3 2019 in
• Q3
• Q2 2021
• business return above Q1 • R&D projects continued keeping the focus on CNG/LNG and Hydrogen applications
  • LNG pressure regulator for HD has successfully passed the winter test for a major Chinese HD OEM
• OEM, while AM is down 10,9% compared to Q3 2019 for the developments of hydrogen components is expanding to new projects
  • hydrogen applications for Passenger Cars
• LRG signed a six-year 21M loan with a pool of banks (BPM, Intesa, Unicredit) covered by a 90% SACE guarantee, with two years of grace period
• Costs containment and efficiency initiatives (SG&A reduced by 3,9M€ vs. same period in 2019) have secured the economical and financial situation of the company • The development of ^a
• Good performance also thanks to the worldwide growing biomethane market • Very important order (1M\$) for
• Highest portfolio and pipeline ever for the coming months
• RNG application in California
• Hydrogen compressor is progressing steadily with expected result in Q1 2021
  • Disciplined management helped controlling all activities also during the lockdown period
  • Improvement of the NWC thanks to actions on production and Supply Chain Management

Net Sales in Q3 up by 72,6% compared to Q2

Sector

- Landi Renzo confirms its position as the top OEM "tier-1" supplier in Europe • OEM share in up to 48,2%,

• compared to 38,5% in 2019 • AM still down compared to Q3 2019, mainly because of LatAm, while other markets grew by 15% vs Q3 2019 • Europe and Italy had a strong • America revenues still affected • Asia&RoW market resuming

- sales

• 18,8

9M results show a positive EBITDA in difficult market conditions

M€; %	2020 9M	2019 9M	delta	delta %
Revenues	99,0	137,9	-38,9	-28,2%
Adj. EBITDA	4,4	18,1	-13,7	-75,7%
% on rev.	4,4%	13,1%
EBITDA	3,5	17,3	-13,8	-79,8%
% on rev.	3,5%	12,5%
EBIT	-5,6	8,2	-13,8	n.a.
% on rev.	-5,7%	6,0%
EBT	-9,5	4,9	-14,4	n.a.
% on rev.	-9,6%	3,5%
Net Result	-7,9	3,1	-11,0	n.a.

Highlights

• -28,2% • Revenues impacted by the Covid-19 pandemic, decreased by 28,2% YoY, affected by the decline of sales in H1 (-41,3% vs H1 2019), returning to a positive growth in Q3 (+9,1% vs Q3 2019) • Adj.EBITDA reduction due to the contraction in sales and a less favorable sales mix, partially offset by the control and reduction of fixed costs • EBITDA remains positive, despite non-recurring expenses, also linked to the Covid-19 health and safety measures
• -75,7%
• -79,8%
• EBT benefits from a reduction of interest costs, (2,4€ vs 3,2M€ of 9M 2019) due to the improvement of financial conditions, still affected by higher foreign exchange unrealized losses due to depreciation of currencies mainly in Lat Am

Cost control initiatives mitigate the consequences of the shrinking business

Highlights

• Adj. EBITDA affected by reduced volumes and a change in sales mix, with an increase of OEM share over total sales and price pressure
• in the AM channel • Positive effect of cost-control initiatives, linked to a tight control of non essential expenses and to the usage of payroll subsidies ("Cassa Integrazione")
• 24,7% 27,1% • Working Capital, typically higher at end of Q3, is expected to decrease by the end of the year, thanks to inventory reduction and credit collection

Integrazione")
	30.09 2019	FY 2019	30.06 2020
DSO	66	77	94
DPO	126	137	120
DIOH	84	76	99
				6

(1) Automotive sector

NFP impacted by the increase of working capital and by investments in R&D to support new products development for the HD segment

M€

-5,5 -86,0 NFP 9M '20 Financials, NFP IFRS 16 (-5,1) Ebitda Capital and Leasing Taxes and derivatives 2019 2020 at 30.09 payment (b) & (-0,4) effect (net of IFRS16) (net of others IFRS16)
22,7 Cash liquidity (+) 19,8
Derivatives (-) -0,4
-61,8 NFP (1) -86,0

SAFE&CEC 9M 2020 shows a growth of the Value of Production (+14,9% YoY); with historically higher portfolio and pipeline for 2021 reached 53,9M€ confirming the growing trend

M€; %	2020 9M	2019 9M	delta
Value of Production	53,9	46,9	7,0
Adj. EBITDA	3,1	3,8	-0,7
% on Value of Product.	5,8%	8,2%
Net Result	-0,2	0,1	-0,3	n.a.
	2020 9M	FY 2019
Working Capital % on Value of Product.	12,7 16,7%	15,2 20,7%

Highlights

• 9M 2020 consolidated value of production of the Group delta %
• Adj. EBITDA has been affected by the lockdown in H1, offset by a strong performance in Q3 (1,5M€). Adj Ebitda is negative, affected by performance in Colombia and Peru where service revenues went down because of Covid 14,9% -18,8%
  • Net Result is substantially in line with 9M 2019
  • Working Capital as of September 30, 2020 improves compared to Dec. 31, 2019 and represents 16,7% of rolling Value of Production, mainly due to the improved credit collection activity and controlled inventory management

Landi Renzo Group and SAFE&CEC are very well positioned to play a leading role in the gas and hydrogen mobility • There is a constantly increasing request for clean fuel and energy, • Maintained a disciplined management approach to ensure business

Market context

with CNG, RNG, LNG and hydrogen taking a major role in policies and projects • Continue to invest strategically to position our Group as leading

Execution

• continuity until the "new normal" situation is reached:
  • o Protect workforce enforcing rigorous health and safety measures
  • o Keep control over fixed costs
  • o Carefully manage working capital
  • o Keep focus on efficiency in production and supply chain processes

Long-term strategy

• player in clean and sustainable mobility:
  • o LNG applications for Heavy Duty
  • o Hydrogen applications for HD and Passenger Cars
  • o Bio-methane generation
  • o Hydrogen compression

LRG kept executing its strategy on AM and OEM, focusing on starting new programs in HD, both for Natural Gas as well as H2 Return to pre-Covid levels is expected by

A "V turn" is expected in AM in many markets from Q1/Q2 2021

2021

SAFE&CEC managed to navigate through the Covid-19 crisis virtually unaffected

It is expected to maintain the growth trend that the company has been experiencing in the last three years

Landi Renzo - Company profile (13/11/2020)

BOARD OF DIRECTORS

Stefano Landi – 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

TOP MANAGERS

SHAREHOLDING SHARE INFORMATION

FTSE Italia STAR

N. of shares outstanding: 112.500.000

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	30/09/2020	30/09/2019
Revenues from sales and services	99,008	137,910
Other revenue and income	89	315
Cost of raw materials, consumables and goods and change in inventories	-57,995	-71,083
Costs for services and use of third party assets	-19,972	-27,965
Personnel expenses	-16,224	-20,169
Accruals, impairment losses and other operating expenses	-1,418	-1,745
Gross Operating Profit	3,488	17,263
Amortization, depreciation and impairment losses	-9,092	-9,051
Net Operating Profit	-5,604	8,212
Financial income	221	75
Financial expenses	-2,367	-3,178
Exchange gains (losses)	-1,718	-531
Gains (Losses) on joint venture valuate using the equity method	-21	315
Profit (Loss) before tax	-9,489	4,893
Taxes	1,612	-1,761
Net profit (loss) for the Group and minority interests, including:	-7,877	3,132
Minority interests	-163	-53
Net profit (loss) for the Group	-7,714	3,185
Basic earnings (loss) per share (calculated on 112,500,000 shares)	-0.0686	0.0283
Diluted earnings (loss) per share	-0.0686	0.0283

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
ASSETS	30/09/2020	31/12/2019
Non-current assets
Property, plant and equipment	13,109	11,578
Development expenditure	8,976	8,228
Goodwill	30,094	30,094
Other intangible assets with finite useful lives	11,345	12,536
Right-of-use assets	5,010	6,402
Investments in associated companies and joint ventures	22,338	23,530
Other non-current financial assets	921	334
Other non-current assets	2,850	3,420
Deferred tax assets	10,561	8,704
Total non-current assets	105,204	104,826
Current assets
Trade receivables	39,592	40,545
Inventories	41,525	39,774
Other receivables and current assets	7,167	7,337
	2,821	2,801
Current financial assets
Cash and cash equivalents	19,821	22,650
Total current assets	110,926	113,107

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	30/09/2020	31/12/2019
Shareholders' Equity
Share capital	11,250	11,250
Other reserves	52,870	49,367
Profit (loss) of the period	-7,714	6,048
Total Shareholders' Equity of the Group	56,406	66,665
Minority interests	-454	-332
TOTAL SHAREHOLDERS' EQUITY	55,952	66,333
Non-current liabilities
Non-current bank loans	73,181	50,991
Other non-current financial liabilities	770	0
Non-current liabilities for right-of-use	3,227	4,535
Provisions for risks and charges	2,837	3,609
Defined benefit plans for employees	1,543	1,630
Deferred tax liabilities	316	407
Liabilities for derivative financial instruments	397	30
Total non-current liabilities	82,271	61,202
Current liabilities
Bank overdrafts and short-term loans	28,996	29,460
Other current financial liabilities	210	210
Current liabilities for right-of-use	1,916	1,992
	38,648	51,935
Trade payables	2,654	2,134
Tax liabilities		4,667
Other current liabilities	5,483
Total current liabilities	77,907	90,398
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	216,130	217,933