Landi Renzo

Investor Presentation • May 15, 2020

Q1 2020 FINANCIAL RESULTS

Cavriago, 15th May 2020 •LRG actions to face the pandemic

• Q1 2020 Financial Results

• Looking ahead

A daily management team has been established to set priorities and manage business continuity, looking forward to continue our strategic journey

Safeguard health and well-being of our employees

Business focus- established a daily management team chaired by the CEO

Keep and maintain a constant relationship with our customers and suppliers

Ensure sustainable operational and financial business continuity

Go ahead with our R&D projects, with strong focus on CNG/LNG and Hydrogen

We expect clean gas-mobilityto play a very important role due to the convenient TCO(1)

SAFE&CEC portfolio is much higher than 2019, with Canada operation always ongoing

(1) Total Cost of Ownership

Agenda

• LRG actions to face the pandemic

•Q1 2020 Financial Results

• Looking ahead

Q1 results have been significantly impacted by Covid-19, even if order portfolio "at lockdown" was higher compared to last 3 years

Revenues 37,2M€ Liquidity 21,6M€ (*) without IFRS 16 effect Production value 14,3M€ Adj. EBITDA 0,3M€ NFP (*) 12,5M€ Landi Renzo Group SAFE&CEC Net Income -1,4M€ NFP (*) 63,5M€ Adj. EBITDA 2,9M€ w/o Covid-19 Revenues at 45,0M€ (7,8M€ of orders not shipped because of lockdown) Adj. EBIT -0,2M€ Covid-19 impacted significantly on Q1 volumes, working capital and net financial position LRG Revenues impacted by temporary production stoppage and demand disruption in all regions related to pandemic Strategic initiatives implemented to ensure sustainable operational and business continuity (15% SG&A cost reduction on annual basis) The Group enter the "crisis" with a very strong liquidity position R&D activities have been regularly carried on during the lockdown period SAFE&CEC Q1 in line with 2019 even if Italian operational performance has been impacted. Q1 Highlights Investments 2,8M€ Liquidity 2,5M€ (*) without IFRS 16 effect

Overall the Group confirms the

growing trend with positive outlook

•

•

•

•

•

•

Order portfolio on Q1 was higher than expectation, confirming the strong market positioning. Important recognition to our R&D in Italy and US

• First quarter order portfolio, until the emergence of the Covid-19 crisis, was higher than 2019 and budget expectations

• As a consequence of the lockdown:

• o European and Chinese OEMs decided to shut down all plants in March and April with a consequent drop of orders
• o Main AM Counties adopted stringent confinement regulation that prevented any commercial activity

• By the end of the quarter, Landi Renzo cumulated about 7,8M€ of unclaimed or postponed orders that had been already producedto meet expected demand

• • a funding of 1,3M€ by the Region Emilia-Romagna for the next two years to develop innovative components for hydrogen-powered systems with the goal of introducing new products and services and sustaining investments and production capacity at regional level
• • Landi USA has been awarded by a 600K\$ grant from South Coast AQMD and SoCalGas for the development of a new "near-zero emission" natural gas Heavy Duty engine

• Current R&D programs have been regularly carried on during the lockdown period, with positive recognition of our new HD product portfolio both in China and India

In the global scenario, the automotive business fell by -27,1% on Q1 2020

• • All major OEMs have shut down their manufacturing facilities due to lockdown measures, limited parts supply and just-intime production strategy. OEMs and Tier1 re-started at the end of April. Most of our reference market in AM were in lockdown starting from mid of March
• •Oil price collapsed to lowest level since 2002due to the slowdown and interruption in the worldwide production activities

• Currencies related to our sales (mainly in all LatAm) have depreciated against the Euro in the last two months, with a direct impact of our revenues

Source: LR elaboration on Roland Berger and AlixPartners research documents

Highlights

Q1 2020 Net Sales down by 15,1% versus a market decline of 27,1%

7

Sector

1"

year Q1

Region

Covid-19

regions:

Europe

addicted

America

down

and

market

Asia&RoW

impacted

crisis

production

also

and

Colombia

by

•

•

• position

OEM/AM

Renzo

as the top

share in line with last

crisis

and

to

due

impact

Italy

OEM

to

shutdowns

revenues

lockdown

revenues

the

in Europe

46,3%

supplier

OEM confirms

OEM

53,7% its

"tier-

AM

in

all

mainly

plant

Brazilian

Covid-19

slightly

of Peru

strongly

• Landi

•

Q1 results show an Adjusted EBIT at break-even despite volumes significantly impacted by Covid-19

M € % ;	2 0 2 0 Q 1	2 0 9 1 Q 1	d l t e a	d l % t e a
R e v e n u e s	3 7, 2	4 3, 8	-6 6 ,	-1 5, 1 %
A d j. E B I T D A	2, 9	5, 4	-2 5 ,	-4 7, 0 %
% on re v.	7, 8 %	1 2, 4 %
E B I T D A	2, 4	5, 4	-3 0 ,	1 -5 5, %
% on re v.	6, 6 %	1 2, 4 %
A d j. E B I T	0, 2 -	2, 3	-2 5 ,	n.a
% on re v.	-0, 4 %	5, 2 %
E B I T	0, 6 -	2, 3	-2 9 ,	n.a
% on re v.	-1, 6 %	5, 2 %
E B T	1, 6 -	1, 5	-3 1 ,	n.a
% on re v.	-4, 2 %	3, 3 %
N R l t t e e s u	1, 4 -	0, 6	-2 0 ,	n.a

Highlights

• •Revenues impacted by lockdown due to Covid-19, that affected all regions, by 7,8M€ of orders not shipped in Q1
  • o Considering Q1 orders not shipped due to Covid-19 crisis, Q1 revenues would have been 45,0M€ - higher by 2,7% compared to last year
• • Adj. EBITDA positively affected by a continued reduction of fixed costs (0,3M€). Lower profitability is mainly due to a different and unfavourable sales mix in OEM in addition to a price reduction in AM required to remain competitive in the changing environment conditions. Net of Covid-19 Adj. EBITDA would have been in line with 2019 and better than expectations
• • FY 2019 Net Result (-1,4M€) decreased by 2M€ compared to last year also due to a unfavourable effect of currency exchange

Pandemic impacts on worldwide market conditions. Cost control partially mitigates the effect of the shrinking business

Highlights

•Adj. EBITDA decreased by 2,5M€ compared to last year:

• o Effect of lower volumes and of change in sales miximpacting by 2,8M€
• o Positively affected by a continued reduction of fixed costs 0,3M€
• • Working Capital at 18,3%, strongly impacted by an increase of inventories due to sales orders not shipped, because of Covid-19, with an impact of ~5M€ and advanced purchases to manage risks of materials lack for 1,1M€. Net of Covid DIOH would have been better than Q1 2019

	3 1. 0 3 2 0 1 9	F Y 2 0 1 9	3 1. 0 3 2 0 2 0
S O D	6 7	7 7	7 5
D P O	1 2 7	1 3 7	1 3 5
D I O H	8 1	7 6	9 5 ( 7 9 Co	f t o ne i d- 1 9 ) v

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

2 0 9 1	N F P	th 2 0 2 0 3 M h 1 t a a r c
2 2, 7	Ca h l iq i d i ( ) ty s u +	2 6 1,
2, 8	Cu F in ia l As ( ) t ts rre n an c se +	2, 8
(2) -2 9, 7	S ho de b (- ) t- ter ts r m	(2) -3 4, 5
-5 1, 0	Lo de b (- ) -te ts ng rm	-5 3, 4
2 -5 5,	N F P f I F R S 1 6 t o ne	-6 3, 5
(3) -6, 6	F ina ia l Le (- ) nc as e	(3) -6, 3
-6 1, 8	( 1) N F P	-6 9, 8

(2)

(1) Short and long terms debt and bond are inclusive of amortized cost effect

Accrued interests included

(3) Financial liability related to first time adoption of IFRS 16 – Leases and derivatives

SAFE&CEC: strong turnover growth (+14,7%), while Adj. EBITDA is impacted by Covid-19 because of delay in WIP completion in Italy

M € % ;	2 0 2 0 Q 1	2 0 1 9 Q 1	d l t e a	d l % t e a
V l f P d i t a u e o r o u c o n	3 1 4,	1 2, 4	1, 8	1 4, 7 %
A d j. E B I T D A	0, 3	0, 3	0, 0	0, 0 %
Va lue f Pr du % t. on o o c	1, 9 %	2, 7 %
N R l t t e e s u	0, 0	-0 3 ,	0, 3	n.a

Highlights

• • Q1 2020 consolidated value of production reached 14,3 M€, confirming the growing trend in volumes already seen in FY2019. due to Italian plant shutdown the Group has delays the completion of some orders still on WIP at end of the quarter, while Canadian operation has continue to operate as usual
• •Adj. EBITDAin line with previous year
• •Net Result is slightly positive, vs a net loss in Q1 2019

W k i C i l t o r n g a p a	1 5, 2	1 5, 2	0, 0
Va lue f Pr du % t. on o o c	2 0, 3 %	2 0, 7 %

• Despite having been impacted by Covid-19 in Italy (WIP), the Company has maintained working capital at 20,3% of value of production, and it is working to optimize

Agenda

• LRG actions to face the pandemic

• Q1 2020 Financial Results

•Looking ahead

We are committed to emerge stronger from the current situation, also leveraging our experience in managing complex situation

• • Ongoing safety and well being of our employees
• • Adoption of smart and new way of working for all the employees

CUSTOMERS & SUPPLY CHAIN

• •Support our dealer network to facilitate recovery phase and respond effectively to the consumer demand
• Study new special initiatives to boost the sale recovery in H2
• •Coordinate suppliers and align the supply base schedule to ensure continuity of production

• •Costs savings, with non essential services postponed or eliminated (SG&A reduced by more than 15% on annual basis)
• • Working Capital optimization to preserve liquidity, also thanks to team expertise
• •Focus on strategic investments

OPERATIONS & R&D

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•

• Guarantee the continuity of production in compliance with safety standards
• •Ensure new product development activities

Landi Renzo Group special opportunities

Although the current emergency situation has inevitably affected our business, we are deeply committed to emerge from this crisis stronger and more efficient. In particular, we will continue to invest in our future growth and we are optimistic that we will be better positioned than ever after this pandemic to achieve our long-term potential

Arising Market opportunities in Automotive

• • Sustainability has emerged even more important after the pandemic, even because of many signs of correlation between air quality and Covid-19 spread, with gas-mobility as immediate economically sustainable solution to improve air quality worldwide
• • There are sign of postponement of Euro7 as well as delay of e-mobility growth in Europe, that would positively impact on gas-mobility growth
• • Typically during economic downturn people look for solution that help to reduce cost, we expect a growth in AM conversion and in new OEM sales of gas vehicles as soon as mobility will re-start
• • The lockdown and the general delay in many projects gives us the opportunities to be better positioned in HDs and Hydrogen as soon as "market" will re-start, as well as the opportunities to value our enter in e-mobility for mid-duty, also through the development of solutions that bring together gas and electrical

SAFE&CEC 2020 perspective has been less impacted by Covid-19, also thanks to the strategic agreement in Egypt and strong market positioning

• • First quarter order portfolio higher than 2019 and budget expectations
• • Revenues are expected in line with 2019, with improvement in profitability
• • in our consolidated market many opportunities are still arising in Europe, Canada and Euroasia

• New strategic plan is ongoing and will be completed by mid-June
• • New growth opportunities from Hydrogen compression, biomethane application and new approach to service
• • Ongoing reinforcement of Management team to support the growth perspective

• Very positive perspective for high value creation even in the short term

Landi Renzo - Company profile (14/05/2020)

BOARD OF DIRECTORS

TOP MANAGERS

SHARE INFORMATION

FTSE Italia STAR

N. of shares outstanding: 112.500.000

Price as of 14/05/2020 € 0.538

INVESTOR RELATIONS

Investor Relations Contacts:

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

CONSOLIDATED P&L

( ho ds f Eur ) t usa n o o
C O N S O L I D A T E D I N C O M E S T A T E M E N T	3 1 / 0 3 / 2 0 2 0	3 1 / 0 3 / 2 0 1 9
Re fro les d s ice ve nue s m s a an erv s	3 7, 1 7 0	4 3, 7 9 8
O he d inc t r re ve nue an om e	5 1	2 0 3
Co f ra ia ls, b les d g ds d c ha in inv ies t o ter tor s ma co ns um a an oo an ng e en w	-1 9, 4 4 5	-2 2, 8 0 6
Co for f t ice d u h ir d p ts ty ts s se rv s a n se o ar as se	-8, 5 6 7	-8, 4 8 7
Per l ex so nne p en se s	-6, 2 6 3	-6, 7 2 7
Ac ls, imp irm los d o he ing t t t cru a a en se s a n r o p era ex p en se s	-5 0 6	-5 4 2
Gr Op ing Pro f it t os s er a	2, 0 4 4	3 9 5, 4
Am iza ion de ia ion d imp irm los t t t t or p rec an a en se s ,	-3, 0 4 3	-3, 1 6 4
Op Ne ing Pro f it t t er a	-6 0 3	2, 2 7 5
F ina ia l inc nc om e	3 0	1 9
F ina ia l ex nc p en se s	-7 3 8	-9 2 0
Exc ha ins ( los ) ng e g a se s	-2 6 1	1 9 2
Ga ins ( Los ) j int lua ing he ity ho d ntu te t t se s on o ve re va us eq me u	2 1	-1 1 0
Pro f it ( Lo ) be for tax ss e es	-1, 5 5 1	6 1, 4 5
Ta xe s	1 7 7	-8 6 6
Gr Ne f it ( Lo ) for he d m ino ity int inc lu d ing t p t ts, ro ss ou p an r er es :	-1, 3 7 4	5 9 0
M ino ity inte ts r res	-6	-1 3
Gr Ne f it ( Los ) for he t p t ro s ou p	-1, 3 6 8	6 0 3
Ba ic e ing ( los ) ha ( lcu la d o 1 1 2, 5 0 0, 0 0 0 s ha ) te s arn s s p er s re ca n res	-0. 0 1 2 2	0. 0 0 5 4
D i lu d e ing ( los ) ha te arn s s p er s re	-0. 0 1 2 2	0. 0 0 4 5

CONSOLIDATED BALANCE SHEET

( ho ds f Eu ) t us an o ro
A S S E T S	3 1 / 0 3 / 2 0 2 0	3 1 / 1 2 / 2 0 1 9
No t a ts n-c ur re n ss e
Pro lan d e ip ty, t a t p er p n q u me n	1 1, 9 2 4	1 1, 5 7 8
De lop d i t e tur ve me n xp en e	8, 4 8 8	8, 2 2 8
Go dw i l l o	3 0, 0 9 4	3 0, 0 9 4
O he in i b le a i h de f in i fu l l ive t tan ts t te r g ss e us e s w	1 2, 2 8 8	1 2, 5 3 6
R ig h f-u t-o ts se as se	6, 0 6 5	6, 4 0 2
Inv in a ia d c ies d j in tme ts te t v tur es n ss oc om p an an o en es	2 2, 3 7 8	2 3, 5 3 0
O f he ina ia l as t t ts r n on -cu rre n nc se	3 3 5	3 3 4
O he t t a ts r n on -cu rre n ss e	3, 4 2 0	3, 4 2 0
De fer d tax ts re as se	8, 9 1 8	8, 7 0 4
To l n ta t a ts on -cu rre n ss e	1 0 3, 9 0 1	1 0 4, 8 2 6
Cu t a ts rre n ss e
Tra de iva b les re ce	3 8, 0 2 7	4 0, 4 5 5
Inv ies tor en	4 8, 0 6 4	3 9, 7 7 4
O he iva b les d c t t a ts r re ce an urr en ss e	8, 2 1 7	3 3 7, 7
Cu f ina ia l as t ts rre n nc se	2, 8 2 2	2, 8 0 1
Ca h a d c h e iva len ts s n as q u	2 1, 6 4 8	2 2, 6 5 0
To l c ta t a ts ur re n ss e	1 1 9, 2 8 2	1 1 3, 1 0 7
T O T A L A S S E T S	2 2 3, 1 8 3	2 1 7, 9 3 3

CONSOLIDATED BALANCE SHEET

( ho ds f Eu ) t us an o ro
S H A R E H O L D E R S ' E Q U I T Y A N D L I A B I L I T I E S	3 1 / 0 3 / 2 0 2 0	3 1 / 1 2 / 2 0 1 9
S ha ho l de ' Eq i ty re rs u
S ha i l ta re ca p	1 1, 2 5 0	1 1, 2 5 0
O he t r re se rve s	5 3, 2 7 6	4 9, 3 6 7
Pro f i ( Lo ) f he io d t t ss o p er	-1, 3 6 8	6, 0 4 8
To l S ha ho l de ' Eq i f he Gr ta ty t re rs u o ou p	6 3, 8 1 5	6 6, 6 6 5
M ino i in ty ter ts r es	-3 1 9	-3 3 2
O S O S Q T T A L H A R E H L D E R ' E U I T Y	6 2, 8 3 9	6 6, 3 3 3
No l ia b i l i ies t t n-c ur re n
No ba k loa t n-c urr en n ns	3, 3 9 6 5	0, 9 9 1 5
No l ia b i l i ies for ig h f-u t t t-o n-c urr en r se	4, 1 9 3	4, 5 3 5
Pro is ion for is ks d c ha s r an rg es v	3, 1 3 9	3, 6 0 9
f f for De ine d be i lan loy t p ne s em p ee s	1, 5 6 0	1, 6 3 0
De fer d l ia b i l i ies tax t re	3 5 6	4 0 7
L ia b i l i ies for de iva ive f ina ia l ins t t tru ts r nc me n	1 9 5	3 0
To l n l ia b i l i ies ta t t on -cu rre n	6 2, 8 0 3	6 1, 2 0 2
Cu l ia b i l i ies t t rre n
Ba k o dra f d s ho loa ts t- ter n ve r an r m ns	3 4, 3 3 5	2 9, 4 6 0
O he f ina ia l l ia b i l i ies t t t r c urr en nc	2 1 0	2 1 0
Cu l ia b i l i ies for ig h f-u t t t-o rre n r se	1, 9 8 8	1, 9 9 2
Tra de b les p ay a	5 4, 3 4 8	5 1, 9 3 5
Ta l ia b i l i ies t x	1, 6 4 5	2, 1 3 4
O he l ia b i l i ies t t t r c urr en	0 1 5, 5	4, 6 6 7
To l c l ia b i l i ies ta t t ur re n	9 7, 5 4 1	9 0, 3 9 8
T O T A L S H A R E H O L D E R S ' E Q U I T Y A N D L I A B I L I T I E S	2 2 3, 1 8 3	2 1 7, 9 3 3

2020 Corporate financial agenda

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 document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking statements are subject to significant risks and uncertainties (many of which are outside the control of the Company and/or the Group) which could cause a material difference between forward-looking information and actual future results.

The information set out in this document is provided as of the date indicated herein. 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