Ariston Holding N.V. — Earnings Release 2022

Dec 10, 2025

August 3 rd , 2022

Ariston posts record top-line result at €1,135M in the first half of 2022, +24% vs prior year

H1 2022 RESULTS HIGHLIGHTS

• Net revenue at 1,135 million euro, increasing 24.1% compared to H1 2021 thanks to a very strong second quarter (+24.3% YoY) and the Chromagen acquisition
• EBIT adjusted amounted to 95 million euro, increasing +5.9% versus H1 2021
• Net profit of 66 million euro, versus 81 million euro in H1 2021 which included a 22-million-euro one-off fiscal benefit
• Free cash flow at -63 million euro, versus +20 million euro in H1 2021
• Net financial position¹ at 31 million euro net debt at June 30th , 2022, following strong frontloading of net working capital, payment for acquisitions and dividends, versus 149 million euro net cash at December 31st , 2021

SHARE BUYBACK PROGRAM

Up to 1.5 million ordinary shares approved by the Board to cover long-term incentive plans

"We are proud to report a solid growth in the first half of the year", commented Paolo Merloni, Executive Chairman of Ariston Group, adding that "The results reward the strategic choice to focus on renewable solutions like heat pumps, a key technology in driving the energy transition. Indeed, the second quarter confirms a positive trend: in Europe² , our sales of heat pumps are already comparable to those of gas products".

"The Group delivered a strong growth, with a positive trend in all geographies" – added Laurent Jacquemin, CEO of Ariston Group. – "The integration of Chromagen is proceeding according to plan, positively contributing to the top line result. We continue to invest in innovation: we have renewed, as per plan, the heat pumps range in the main European markets and we are testing boilers working with 100% hydrogen".

¹ Calculated according to ESMA 32-382-1138 guidelines.

² EU+CH.

The Board of Directors of Ariston Holding N.V. (MTA/EXM; Bloomberg ticker: ARIS IM) met today and approved the consolidated half-year report for the six months ending on June 30th, 2022.

H1 2022 CONSOLIDATED RESULTS

Net revenue amounted to 1,134.5 million euro, a growth of 24.1% compared to the 914.5 million euro registered in the first half of 2021. The performance was particularly strong in the Thermal Comfort division, remarkably supported by the increasing demand forsustainable heating systems in Europe. Notably, the second quarter (+24.3%) confirmed the strong growth registered in the first quarter (+23.8%).

€M	H1 2022	H1 2021	Change	o/w M&A
Thermal Comfort	1,042.4	828.7	+25.8%	65.9
Burners	43.8	43.6	+0.5%
Components	48.4	42.2	+14.6%
Total	1,134.5	914.5	+24.1%	65.9

€M	H1 2022	H1 2021	Change	o/w M&A
Europe	740.4	628.1	+17.9%	2.8
Americas	141.8	121.6	+16.6%	0.7
Asia/Pacific & MEA	252.4	164.8	+53.1%	62.4
Total	1,134.5	914.5	+24.1%	65.9

Currency exchanges provided a positive effect worth a +3.3%; the newly-acquired Chromagen, consolidated since the beginning of the year, added a further 7.2%.

EBITDA registered at 132.7 million euro, a growth of 12.7% with respect to the 117.8 million euro registered in H1 last year, while EBIT amounted to 88.6 million euro, up 9.7% compared to the 80.7 million euro of the first half of 2021.

These margins are also presented in an adjusted form which is more suitable to appreciate the trend of normal business operations, with the exclusion of costs or revenues not representative of them; the most significant adjustments in the period consisted in the write-off of some assets in Ukraine, net capital gain on real estate and – for EBIT – the PPA amortization for the newly-acquired Chromagen business.

EBITDA adjusted amounted to 135.5 million euro, with a growth of 8.1% with respect to the 125.3 million euro registered in the first half of 2021, with a decrease in margin on net revenue from 13.7% to 11.9%.

EBIT adjusted amounted to 94.7 million euro, up 5.9% compared to the 89.4 million euro of the first half of 2021. The corresponding margin on net revenue went from the record-high 9.8% of H1 2021

to 8.3%, incorporating a dilution from M&A, an increase of SG&A expenses aimed at sustaining future growth, and a further surge in raw material costs immediately following the beginning of Russia's invasion of Ukraine, partially reverted to normal at the half-year point.

Net profit for the half year reached 66.3 million euro, with a consolidated tax rate of 23.0%. The result is 18.4% lower than the 81.3 million euro registered in the first half of 2021, which benefitted from the booking of a one-off fiscal benefit worth 22.0 million euro from the revaluation of certain tangible and intangible assets. Net of this one-off effect, this year's H1 net profit is 11.9% higher than H1 last year.

Free cash flow in the half year amounted to -62.8 million euro, versus +20.1 million euro for H1 2021. Among its components, the higher EBITDA and the positive mark-to-market on derivatives were overshadowed by a negative change in other assets and liabilities and by a significant increase in net working capital aimed at preserving business continuity in the presence of significant disruptions in worldwide supply chains and logistics. The increase, in addition of normal seasonal factors, brought net working capital to 14.2% of last- twelve-months revenue. This ratio is expected to decrease by year-end, assuming a normalization in global trade.

Net financial indebtedness at June 30th , 2022 (calculated according to ESMA 32-382-1138 guidelines) went from 149.0 million euro net cash at the beginning of the year to 30.6 million net debt, substantially due to the increase in net working capital, the cash-out related to the Chromagen acquisition, and the payment of dividends.

For comparison purposes, applying the calculation method used before the adoption of ESMA guidelines, the net financial position went from 184.8 million euro net cash to 4.0 million euro net debt. The main differences are ESMA's inclusion – among liabilities – of put & call options related to acquisitions, and the neutralization of positive mark-to-market from derivatives.

SHARE BUYBACK PROGRAM

The Board of Directors approved a program to purchase up to 1,500,000 ordinary shares, aimed to meet the Company's obligations under the long-term incentive plans, and resolved to grant the power to the Executive Chair to execute such program in accordance with applicable laws and regulations. Further details will be announced in due course before the launch of the program.

HALF-YEAR REPORT AND ANALYST PRESENTATION

The half-year report, prepared in accordance with IAS34, is not subject to auditing and is not published in ESEF format. It is available in electronic format at the authorized repository www.1info.it and on the corporate website www.aristongroup.com in the "Investors & Governance" section.

The H1 2022 Analyst Presentation will be made available at the authorized repository www.1info.it and on www.aristongroup.com in the "Investors & Governance" section.

CONTACTS

www.aristongroup.com

Media Relations Brunswick Alessandro Iozzia – Andrea Mormandi ariston@brunswickgroup.com +39 02 9288 6200

Investor Relations Luca Mirabelli investor.relations@ariston.com +39 02 8567 2317

About Ariston Group

Ariston Group is a global leader in sustainable solutions for hot water and space heating, components and burners. In 2021 the Group reported almost 2 billion euro revenues. Ariston Group has about 8,000 employees, representative offices in 43 countries, 25 production sites and 26 research and development centers in 5 continents. Ariston Group is listed on Euronext Milan since November 2021.

Ariston Group demonstrates its commitment to sustainability through the development of renewable and high efficiency solutions, such as heat pumps, water heating heat pump, hybrid solutions and solar thermal systems. The Group also stands out for its continuous investment in technological innovation, digitalization and advanced connectivity systems.

The Group offers a full range of products, solutions and services mainly under the global brands Ariston and ELCO, and operates under iconic local brands such as Calorex, NTI, HTP, Chaffoteaux, ATAG, Chromagen, Racold as well as Thermowatt and Ecoflam in the component and burner business.

Alternative Performance Measures (APMs)

This announcement contains certain financial performance measures that are not defined in IFRS standards (non-GAAP measures). These measures comply with the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority ('ESMA') in its communication ESMA/2015/1415. For a full presentation and discussion of alternative performance measures, please refer to chapter 4.6 "Definition and reconciliation of the Alternative Performance Measures (APMs or non GAAP measures) to GAAP measures" in Ariston Group's half-year 2022 report.

Forward-looking statements

This announcement may contain certain forward-looking statements, estimates and forecasts reflecting management's current views with respect to certain future events. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the Group's future financial position and results of operations, strategy, plans, objectives, goals and targets and future developments in the markets where the Group operates or intends to operate. Forward-looking information is based on information available to the Group as of today and is based on certain key assumptions; as such, forward-looking statements speak only as of the date of this announcement. No assurance can be given that such future results will be achieved; actual events may materially differ as a result of risks and uncertainties faced by the Group, which could cause actual result to vary materially from the future results indicated, expressed or implied in such forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward- looking statements as a prediction of actual results. Except as required by applicable laws and regulations, the Group expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based; the Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document, and in any related oral presentation, including responses to questions following the presentation, or in connection with any use by any third party. Further information on the Group and its activities, including those factors that may materially influence its financial results, are contained in the reports and documents of the Group deposited with the AFM and CONSOB.

Attachments:

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

H1 2022 INCOME STATEMENT

H1 2022 CASH FLOW STATEMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

(in million €)	At June 30, 2022	At December 31, 2021
Assets
NON-CURRENT ASSETS
Intangible assets
Goodwill	319.0	294.8
Other intangible assets	129.0	113.0
Total intangible assets	448.1	407.8
Property, plant and equipment
Land and buildings excluding ROU	128.9	121.4
Land and buildings ROU	50.2	40.5
Land and buildings	179.1	161.9
Plant and machinery excluding ROU	109.5	103.2
Plant and machinery ROU	1.3	1.3
Plant and machinery	110.7	104.5
Other property, plant and equipment excluding ROU	80.6	87.8
Other property, plant and equipment ROU	24.0	18.2
Other property, plant and equipment	104.6	106.0
Total property, plant and equipment	394.4	372.4
Investments in associates & Joint ventures	2.4	2.4
Deferred tax assets	104.0	102.4
Financial assets	5.3	5.2
Non-current financial assets	2.2	0.0
Other non-current assets	7.6	6.4
Non-current tax receivables	1.2	1.2
Total non-current assets	965.2	897.8
CURRENT ASSETS
Inventories	519.1	382.0
Trade receivables	300.1	248.3
Tax receivables	38.2	29.8
Current financial assets	30.2	10.8
Other current assets	58.4	56.4
Cash and cash equivalents	515.0	689.7
Total current assets	1,461.1	1,417.0
ASSETS HELD FOR SALE	1.3	2.3
TOTAL ASSETS	2,427.5	2,317.0

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

(in million €)	At June 30, 2022	At December 31, 2021
Liabilities and Equity
NET EQUITY
Share capital	46.1	46.0
Share premium reserve	313.3	293.7
Retained earnings and other reserves	537.3	402.0
Net profit attributable to the Group	66.4	136.5
Net equity attributable to the Group	963.1	878.3
Non-controlling interests and reserves	2.2	0.0
Net profit attributable to non-controlling interests	-0.1	-0.2
Net equity attributable to non-controlling interests	2.1	-0.2
Net equity	965.2	878.1
NON-CURRENT LIABILITIES
Deferred tax liabilities	60.3	50.8
Non-current provisions	58.3	56.9
Post-employment benefits	40.8	51.7
Non-current financing	462.3	446.4
Other non-current liabilities	4.4	4.9
Non-current tax liabilities	1.3	7.8
Total non-current liabilities	627.3	618.5
CURRENT LIABILITIES
Trade payables	496.3	477.2
Tax payables	50.2	45.1
Current provisions	34.5	33.5
Current financial liabilities	64.5	46.1
Current loans	24.7	23.1
Other current liabilities	164.8	195.4
Total current liabilities	835.0	820.4
LIABILITIES HELD FOR SALE	0.0	0.0
TOTAL LIABILITIES AND NET EQUITY	2,427.5	2,317.0

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

(in million €)	For the six months		For the six months
	ended June 30, 2022		ended June 30, 2021
REVENUE AND INCOME
Net revenue	1,134.5	100.0%	914.5	100.0%
Other revenue and income	24.5	2.2%	18.7	2.0%
Revenue and Income	1,159.0	102.2%	933.2	102.0%
OPERATING EXPENSES
Change in inventories	-118.1	-10.4%	-77.8	-8.5%
Raw materials, consumables and goods for resale	650.4	57.3%	482.5	52.8%
Services	234.9	20.7%	178.4	19.5%
Personnel	231.7	20.4%	208.6	22.8%
Amortisation	44.1	3.9%	37.1	4.1%
Provisions	7.5	0.7%	9.3	1.0%
Write-downs	0.0	0.0%	0.0	0.0%
Other operating expenses	19.9	1.8%	14.5	1.6%
Operating expenses	1,070.4	94.4%	852.5	93.2%
OPERATING PROFIT	88.6	7.8%	80.7	8.8%
FINANCIAL INCOME AND EXPENSE
Financial Income	3.0	0.3%	1.5	0.2%
Financial Expense	-7.1	-0.6%	-6.0	-0.7%
Exchange rate gains/losses	-3.3	-0.3%	-0.5	-0.1%
Financial Income and Expense	-7.4	-0.7%	-5.0	-0.5%
PROFIT (LOSS) ON INVESTMENTS
Profit (loss) on investments	4.9	0.4%	-2.0	-0.2%
PROFIT BEFORE TAX	86.1	7.6%	73.7	8.1%
TAXES	19.8	1.7%	-7.5	-0.8%
		23.0%		-10.2%
PROFIT (LOSS) FROM CONTINUING OPERATIONS	66.3	5.8%	81.3	8.9%
NET PROFIT	66.3	5.8%	81.3	8.9%
Net profit attributable to non-controlling Interests	-0.1	-0.1%	0.0	0.0%
Net profit attributable to the Group	66.4	5.9%	81.3	8.9%
Basic earnings per share (€)	0.20		0.25
Diluted earnings per share (€)	0.20		0.25

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

(in million €)

For the six months ended June 30,

For the six months ended June 30,

	CASH FLOW FROM OPERATING ACTIVITIES
1	NET PROFIT	66.3	81.3
2	- Taxes	19.8	-7.5
3	- Income and expense from financing and investment activities	2.5	7.0
4	- Amortisation excluding ROU	31.3	26.8
5	- Amortisation ROU	12.8	10.2
6	- Provisions	7.5	9.3
7	- Other adjustments	0.0	0.0
8	= GROSS OPERATING CASH FLOW (+1+2+3+4+5+6+7)	140.3	127.0
9	- Change in trade receivables	-19.5	-9.0
10	- Change in inventories	-93.8	-77.8
11	- Change in trade payables	-21.0	45.0
12	- Change in other short-term assets/liabilities	-16.1	-2.1
13	- Change in provisions	-10.8	-7.2
14	- Tax paid	-27.5	-24.0
15	= NET OPERATING CASH FLOW (+8+9+10+11+12+13+14)	-48.4	51.9
	CASH FLOW FROM INVESTMENT ACTIVITIES
16	- Investments in intangible assets	-7.2	-5.6
17	- Investments in property, plant and equipment	-12.2	-13.1
18	- Investments in financial assets	-53.0	-4.7
19	- Change in the scope of consolidation	-1.9	0.0
20	- Value of tangible and intangible assets sold	-0.1	1.6
21	= CASH FLOW FROM INVESTMENT ACTIVITIES (+16+17+18+19+20)	-74.3	-21.8
	CASH FLOW FROM FINANCING ACTIVITIES
22	- Financial income/expense collected/paid	-0.8	-1.5
23	- Financial expense pursuant to IFRS16	-0.9	-0.7
24	- Other inflows (outflows) of cash classified as financing activities	-5.6	-2.6
25	- Increase/decrease in short-term financial payables	5.2	46.2
26	- New loans	8.2	202.5
27	- Loans repayment	-16.8	-319.1
28	- Dividends	-46.4	-48.3
29	- Capital and reserves increase/distribution	0.0	0.0
30	- Proceeds from issue of ordinary shares	0.0	0.0
31	- Buyback/sale of treasury shares	0.0	0.0
32	= CASH FLOW FROM FINANCING ACTIVITIES (22+ / +31)	-57.1	-123.4
33	= CASH FLOW FROM CONTINUING OPERATIONS (15+21+32)	-179.8	-93.3
34	= CASH FLOW FROM DISCONTINUED OPERATIONS	0.0	0.0
35	= TOTAL CASH FLOW (33+34)	-179.8	-93.3
36	Effect of changes in exchange rates	13.2	6.3
37	= TOTAL MOVEMENT IN CASH AND CASH EQUIVALENTS (+35+36)	-166.6	-87.0
38	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	655.5	430.7
39	CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (+37+38)	488.9	343.7