Landi Renzo

Investor Presentation • May 14, 2019

Q1 2019 FINANCIAL RESULTS

Executive Summary

	Executive Summary
	• New Board of Directors appointed for 2019-2021, with the appointment of Mr. Vincenzo Russi as new
Governance	Independent Director and Mr. Paolo Ferrero as new members of the Board • Mr. Stefano Landi confirmed Chairman and Mr. Cristiano Musi confirmed in his position as Chief Executive Officer and General Manager
Q1 2019 Financial Results	• Q1 2019 results presented under IFRS 16 • Revenues +4,2% vs Q1 2018 • EBITDA +20,0% vs Q1 2018 (+6,1% vs Q1 2018 ante-IFRS 16) • Net Income positive 0,6M€ (vs 1,2M€ negative in Q1 2018) • NFP @ 64,2M€ (59,7M€ ante-IFRS 16) • SAFE&CEC revenues +26,1% vs Q1 2018; Adj. EBITDA positive @ 0,3M€ (+1,3M€ vs Q1 2018)
Main events	• Signed an agreement with Hydrogenics to design and develop fuel cell hydrogen systems and components for heavy duty mobility. The initial project foresees a collaboration to design and prototype a truck system application • Cerved updated the rating of Landi Renzo to B1.2 • LRG is in discussion with KLR to fully consolidate the company, with positive impact both in term of volume and EBITDA • Started working on New Strategic Plan, with the main goal to identify the proper competitive positioning and a set of actions to accelerate growth and sustain the performance improvement
Strategic	• SAFE&CEC had signed important agreement with ENI in Italy and is valuing strategic option to enter LNG • 2019 Outlook confirmed both for Landi Renzo Group and SAFE&CEC
Outlook

Q1 2019 performance improved compared to last year, with results aligned to expectations

Q1 LRG economic result is positive with a net income of 0,6M€ Revenues and EBITDA increased Y-o-Y, in line with expectations

M€; %

Q1 LRG economic result is positive with a net income of 0,6M€
M€; %					Revenues and EBITDA increased Y-o-Y, in line with expectations Highlights
	2019 Q1	2018 Q1	Delta M€	Delta %	(+4,2%), mainly due to OEM volumes increase (+15,9% vs
Revenues	43,8	42,0	1,8	4,2%
EBITDA Adj. % on Revenues	5,4 12,4%	5,4 12,8%	0,1	1,5%	share on turnover EBITDA reached 12,4% of revenues,
EBITDA	5,4	4,5	0,9	20,0%	impacted by the reduction of
% on Revenues EBIT	12,4% 2,3	10,8% 1,9	0,4	21,1%	fixed cost, showing that the company has a cost structure aligned to OEM suppliers
% on Revenues	5,2%	4,5%			• EBIT positive, 5,2% of
Capital Gain/Loss	-0,1	-0,9	0,8	87,4%	revenues, in line with best practices in the automotive
Financials EBT	-0,7 1,5	-1,1 -0,1	0,4 1,6	37,7% NA	sector
Taxes	-0,9	-1,0	0,2	17,0%	• Impact from SAFE&CEC
Net Income	0,6	-1,2	1,8	NA	improved, compared to Q1 2018 and expected to be positive in Q2

Highlights

• Revenues increased by 1,8M€ (+4,2%), mainly due to OEM volumes increase (+15,9% vs Q1 2018), while AM is stable Delta %
• Despite the increase of OEM share on turnover EBITDA reached 12,4% of revenues, up to 0,9M€ (+20,0%) positively impacted by the reduction of fixed cost, showing that the company has a cost structure aligned to OEM suppliers compared to a loss of 1,2M€ in
  • EBIT positive, 5,2% of revenues, in line with best practices in the automotive sector
  • Impact from SAFE&CEC improved, compared to Q1 2018 and expected to be positive in Q2
  • Net Income positive by 0,6M€ Q1 '18

Q1 2019 Net Sales details by sector and geographical region

M€; %

2019 Q1 EBITDA improved by 0,9M€ thanks to continuous improvement projects Working Capital in line with budget expectations

Highlights

• 5,4 • EBITDA improved by 0,9M€ compared to last year due to:
  • o Higher revenues impact by 0,5M€
• Q1 '19 o Effect of change in sales mix between Aftermarket and OEM sectors impacting by 2,1M€, offset by fixed costs reduction by 1,9M€ thanks to full benefit from the industrial turnaround implemented
  • o Effect of «IFRS 16» rules application from 2019 (+0,6M€)
• Working Capital increased to sustain strong Q2 volume expectations, considering OEM sales orders for April as well as expected growth in AM. Moreover, the company has reduced payment terms to suppliers '18 Q1 '19

NFP evolution impacted by investments in working capital and in R&D to support new products development for the Heavy Duty segment

				-1,7	-59,7
						-4,5	-64,2
NFP 2018	Q1 '19 Ebitda	Working Capital & others	CapEx	Financials, Taxes & others	NFP 2019 at 31.03 (net of IFRS16)	IFRS16 effect	NFP 2019 at 31.03
15,1			Cash liquidity (+)				17,2
-28,1 (2)			Bond (-)				-28,1(2)
-68,0			Tot. Gross Debt (-)				-81,4
-52,9			NFP (1)				-64,2
	(2) accrued interests included	(1) Short and long terms debt and bond are inclusive of amortized cost effect

SAFE&CEC result shows strong improvement in performance with +26% of revenues and a positive EBITDA

					SAFE&CEC result shows strong improvement in performance with +26%
of revenues and a positive EBITDA
M€; %
	2019 Q1	2018 Q1	Delta M€	Delta %	• Consolidated revenues reached
Revenues	12,4	9,9	2,6	26%
EBITDA Adj.	0,3	-1,0	1,3	NA	compared to Q1 2018, confirming the growing trend of volumes and
% on Revenues	2,7%	-10,4%
Extraord.Expenses	-0,1	-0,5	0,4	-88%	on the market
EBITDA	0,3	-1,5	1,8	NA	• Order book of Q1 more that 20% higher compared to the same
% on Revenues	2,3%	-15,2%			period of 2018
Depreciation	-0,4	-0,3	-0,1	19%
EBIT	-0,1	-1,8	1,7	95%
% on Revenues	-0,7%	-18,3%
Net Income	-0,3	-1,9	1,6	85%	in 2018
	2019	2018			(+1,6M€)
	Q1	Q1			• Working capital as at March 31,
Working Capital % on 12M rolling revenues	9,0 14,7%	8,7 14,8%

2019	2018
Q1	Q1

Highlights

• Consolidated revenues reached 12,4M€, increasing by 26% compared to Q1 2018, confirming the growing trend of volumes and the strong positioning of the Group on the market • Q1 2019 Adj. EBITDA positive by %
  • Order book of Q1 more that 20% higher compared to the same period of 2018
  • 0,3M€ (compared to negative 1,0M€ of Q1 2018), thanks to the volume effect as well as the impact of cost saving initiatives completed in 2018 • Q1 2019 Net loss of 0,3M€ compared to minus 1,9M€ in Q1
  • (+1,6M€)
  • Working capital as at March 31, 2019 is in line to December 2018

Landi Renzo - Company profile (10/05/2019)

BOARD OF DIRECTORS

SHAREHOLDING SHARE INFORMATION

N. of shares outstanding: 112.500.000

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts:

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

STOCK VS MARKET

CONSOLIDATED P&L

(thousands of Euro)
INCOME STATEMENT	31/03/2019	31/03/2018
Revenues (goods and services)	43,798	42,037
Other revenue and income	203	102
Cost of raw materials, consumables and goods and change in inventories	-22,806	-20,145
Costs for services and use of third party assets	-8,487	-9,575
Personnel expenses	-6,727	-7,218
Accruals, impairment losses and other operating expenses	-542	-668
Gross Operating Profit	5,439	4,533
Amortization, depreciation and impairment losses	-3,164	-2,654
Net Operating Profit	2,275	1,879
Financial income	19	26
Financial expenses	-920	-919
Gains (losses) on exchange rate	192	-245
Gains (losses) on joint venture accounted for using the equity method	-110	-873
Profit (Loss) before tax	1,456	-132
Current and deferred taxes	-866	-1,043
Profit (loss) of the period for the Group and minority interests, including:	590	-1,175
Minority interests	-13	-52
Profit (Loss) of the period for the Group	603	-1,123
Basic earnings (loss) per share (calculated on 112,500,000 shares)	0.0054	-0.0100
Diluted earnings (loss) per share	0.0054	-0.0100

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET
(thousands of Euro)
ASSETS	31/03/2019	31/12/2018	31/03/2018
Non-current assets
Property, plant and equipment	12,254	12,745	13,489
Development expenditure	7,347	6,932	4,904
Goodwill	30,094	30,094	30,094
Other intangible assets with finite useful lives	13,848	14,039	15,356
Right-of-use assets	4,616	0	0
Investments accounted for using the equity method	22,593	22,292	23,428
Other non-current financial assets	383	352	445
Other non-current assets	3,991	3,991	4,560
Deferred tax assets	10,170	10,538	7,647
Total non-current assets	105,296	100,983	99,923
Current assets
Trade receivables	34,498	35,131	30,386
Inventories	42,375	38,895	38,822
Other receivables and current assets	7,744	8,016	8,918
Cash and cash equivalents	17,156	15,075	18,670
Total current assets	101,773	97,117	96,796
TOTAL ASSETS	207,069	198,100	196,719

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET
(thousands of Euro)
EQUITY AND LIABILITIES	31/03/2019	31/12/2018	31/03/2018
Group shareholders' equity
Share capital	11,250	11,250	11,250
Other reserves	49,033	43,931	45,474
Profit (loss) of the period	603	4,671	-1,123
Total equity attributable to the shareholders of the parent	60,886	59,852	55,601
Minority interests	-298	-276	-674
TOTAL EQUITY	60,588	59,576	54,927
Non-current liabilities
Non-current bank loans	23,117	23,055	26,813
Other non-current financial liabilities	24,428	24,427	29,790
Non-current right-of-use liabilities	2,991	0	0
Provisions for risks and charges	5,652	5,443	9,045
Defined benefit plans	1,709	1,646	2,027
Deferred tax liabilities	433	339	457
Total non-current liabilities	58,330	54,910	68,132
Current liabilities
Bank overdrafts and short-term loans	25,026	16,203	13,049
Other current financial liabilities	4,282	4,262	2,792
Current right-of-use liabilities	1,470	0	0
Trade payables	49,592	55,166	49,168
Tax liabilities	1,728	2,385	3,265
Other current liabilities	6,053	5,598	5,386
Total current liabilities	88,151	83,614	73,660
TOTAL EQUITY AND LIABILITIES
	207,069	198,100	196,719

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

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