De'Longhi — Investor Presentation 2019

Mar 15, 2019

FY 2018 Results

Definitions & assumptions

In this presentation:

• •Continuing Operations identify the consolidated perimeter excluding NPE s.r.l.;
• • ForEx or FXstand for Foreign Exchange Rates;
• •Organic stands for effect net of ForEx and hedging derivatives;
• •Adjusted stands for "before non recurring items and inputed costs of the stock option plan"
• • Q4 stands for fourth quarter (October1st – December 31st), FY stands for full year (January 1st – December 31st);
• •"M" stands for million and "bn" stands for billion.

CONTENTS

• •FY 2018 Results
• •Outlook FY 2019
• •Appendix

FY 2018 RESULTS ("continuing operations") HIGHLIGHTS

In the FY 2018:

• Revenues up 5.4% to € 2,078.4 million (+ 8.4% organic), driven by coffee makers (+13.8% organic);
• Adjusted EBITDA up to € 312,8 million equal to 15.1% of revenues , but in organic terms at 15,2% as in 2017;
• Net Financial Position positive to € 228.1 M, after dividends paid of € 149.5 M and capex of € 66.4 million;
• as expected, profitability impacted by some headwinds like the increase of cost of raw materials, pressure on prices and currencies' volatility.

In Q4:

at constant exchange rates, adjusted EBITDA margin stood to 20,1% in line with the previous year.

FY 2018 RESULTS ("continuing operations") SALES AND NET INDUSTRIAL MARGIN

	F Y 1 8	F Y 1 7	C h a n g e	C h % a n g e
R e e n e s v u	2 0 7 8 4 ,	1, 9 7 2 8	1 0 5 6	5 4 %
t i d t i l i n e n s r a m a r g n u % f o r e v e n u e s	9 9 0 7 4 % 7 7	9 6 7 3 9 0 % 4	2 3 4 b p s	2 4 % 1 3 6. 7 -
				+ +	i F Y, 8, 4 % o r g a n c i Q 7, 4 % 4 o r g a n c

• The FY18 revenues grew by 5.4%, but in organic terms the expansion has been +8.4%;
• the growth dynamics of the last quarter were confirming the previous trends, with coffee makers sustaining the overall growth;
• the net industrial margin was under pressure due to higher raw material prices (as expected), currency headwinds and pressure on prices due to ^a tough competitive scenario.

FY 2018:MAIN ORGANIC UPS & DOWNS

G R O W I N G O G D U B L E D I I T	S & C U d a n a a • R i U k & C I S u s s a r. • , P l d o a n •
G R O W I N G S G G I N L E D I I T	G e r m a n y • G C h i t r e a e r n a • J a p a n •
D O W N	I l t a y • S & i P t l p a n o r u g a • S h A f i t o u r c a • B i l r a z •

FY 2018 RESULTS ("continuing operations")

REVENUES BREAKDOWN BY MARKET

Re f he "co inu ing ion " t t t ve nu es o n op er a s
l l E U R i ion m	hs 1 2 t m on 2 0 1 8	hg % c	hg ic org an c . %	h 4 Q t te r 2 ua r 0 1 8	hg % c	hg ic org an c . %
h S W E u t t o e s r o p e u	8 2 4. 1	% 1. 7	% 2. 4	3 0 3. 5	% 0. 3	% 0. 8
h N E E u t t o r a s r o p e	5 5 2. 3	7. 5 %	1 2. 4 %	2 2 5. 1	5. 7 %	9. 7 %
O E U R P E	1, 3 7 6. 4	3. 9 %	6. 3 %	5 2 8. 6	2. 5 %	4. 5 %
( f ) i i i i A P A A / P / A s a a c c m e r c a s	5 6 6. 0	8. 7 %	1 3. 0 %	2 0 8. 1	1 2. 6 %	1 3. 2 %
( i d d l d i f i ) M E I A M E / I / A t e a s n a r c a	1 3 6. 0	% 6. 3	% 1 0. 9	4 1. 5	% 2 1. 3	% 1 9. 6
O S T T A L R E V E N U E	2, 0 7 8. 4	5. 4 %	8. 4 %	7 7 8. 1	5. 9 %	7. 4 %

• South-West Europe: Germany and Austria have sustained the growth, while the trend in some of Mediterranean countries showed some weakness;
• North-East Europe: up double digit at an organic level, with strong Russia, Poland and eastern Europe countries; in the Q4 we highlight ^a recovery in UK and some weakness of Nordics;
• APA: double digit growth in organic terms, remarkable increase of sales in US & Canada (now second market of the Group), jointly with ^a good expansion in Asia;
• MEIA: continuous recovery in Q4 , thanks to the recovery in UAE.

FY 2018 sales breakdown by product

FY 2018:MAIN ORGANIC UPS & DOWNS

• o In the coffee segment, all categories have grown, except for Dolce Gusto (down double digit):
• in organic terms:
• o full auto up double digit, both in the Q4 and over 12months;
• otraditional pump up high single digit;
• o Lattissima Nespresso up double digit in the FY18.

COFFEE MAKERS

• o the whole segment was only slightly negative yoy, but with a persistent weakness of the foodpreparation global market (GFK data);
• o Kitchen machines branded Kenwood have shown signs of improvement in the last quarters.

COMFORT & HOME CARE

• o The comfort segment (portable heating, air conditiong and air treatment) grew strongly over the 12months, helped by favorable climate conditions;
• o Braun's irons were up, thanks to the launch of the new steam generators which grew double digit in Q4.

FY 2018 RESULTS ("continuing operations")

EBITDA MARGINS AND NET PROFIT

	F Y 1 8	F Y 1 7	C h C h % a n g e a n g e
d j t d E B I T D A a u s e % f o r e v e n u e s	3 1 2 8 1 5 1 %	3 0 9 5 1 5 7 %	3 3 1. 1 % b 6 3. 8 p s -
E B I T D A % f o r e v e n u e s	3 0 4 5 1 4 7 %	3 0 3 7 1 5 4 %	0 8 0. 3 % b 7 4. 3 p s -
N t f i t e p r o % f o r e v e n u e s	1 8 3 9 8 8 %	1 7 9 7 9 1 %	4 2 2 3 % b 2 6. 3 p s -
d j t d N t f i t a u s e e p r o % f o r e v e n u e s	1 9 0 3 9 2 %	1 7 3 2 8 8 %	1 7 1 9. 9 % b 3 7. 7 p s

• The 2018 adjusted Ebitda was slightly up, but in organic terms the Group had ^a stable margin vs last year both in the 4th quarter (20,1%) and in the full year (15,2%);
• De'Longhi has increased promotional and support activities with the goal of ensuring adequate visibility to our products;
• the adjusted net profit (net of non recurring operating, financial items and tax effect) accounted to € 190.3 million, up by 9.9% compared to 2017.

FY 2018 RESULTS ("continuing operations") ADJUSTED EBITDA BRIDGE

FY 2018 RESULTS ("continuing operations")

NET FINANCIAL POSITION AND WORKING CAPITAL

	F Y 1 8	F Y 1 7	C h a n g e
N W k i C i l t t e o r n g a p a	3 2 2 5	2 8 5 7	6 4 7
N t i t e e q u y	1 0 6 9 5 ,	1 0 2 3 3 ,	2 6 4
N d b / ( N h ) t t t e e e c a s	2 2 8 1 -	2 5 0 6 -	2 2 5
N D b / E b i d ( l ) t t e e a e e r a g e v	0 7 -	0 8 -
C / N W R e v e n u e s	% 1 5 5	% 1 3 1	b 2 4 5 p s

The net financial position as at December 31st was positive by 228.1 million €;

• the cash flow from investments is equal to 66.4 million € lower than 2017;
• the higher level of inventories, compared to the previous year, was due to an anticipation of supplies to the North American market (in light of the expected rise in duties on goods imported from China) as well as greater stocks of coffee makers to meet the growth dynamics budgeted for the first quarters of the new year.

FY 2018 RESULTS ("continuing operations") THE CASH FLOW PERFORMANCE

CONTENTS

• •FY 2018 Results
• •Outlook FY 2019
• •Appendix

OUTLOOK FY19

COFFEE MAKERS: NEW PRODUCTS

MAESTOSA

Full auto coffee machine

Key features: double grinder, double boiler, connectivity.

LA SPECIALISTA

Pump coffee machine

The "barista" experience at home

MULTISERVE

Drip coffee maker

Preparation of multiple coffee sizes, from single cup to full carafe, tea preparation

OUTLOOK FY19

COOKING & FOOD PREPARATION: NEW PRODUCTS

COOKEASY +

Cooking food processor

New connected all-inone cooker

CHEF XL SENSE Special Edition

Kitchen machine

Best performance with enhanced design / finishing

IDEALFRY

Air Fryer

Great tasting fried food Excellent cooking performance

OUTLOOK FY19

COMFORT & HOME CARE: NEW PRODUCTS

PAC EL Wi-Fi

Portable Air Condition.

First ever Pinguino wi-fi Working Smart Speakers

NEW CARESTYLE 5

Steam Generator Irons

Excellent ergonomic design FastClean System Braun´s lightest iron

TASCIUGO ARIA DRY PURE WiFi

Dehumidifier

21l/d dehumidification Certified Asthma&Allergy Friendly

OUTLOOK FY19GUIDANCE

CONTENTS

• •FY 2018 Results
• •Outlook FY 2019
• •Appendix

APPENDIX

KEY P&L FIGURES 2017-2018 («continuing operations»)

( ) i l l ion Eu ro m		2 0 1 7				2 0 1 8
	Q 1- 1 7	Q 2- 1 7	H 1	Q 3- 1 7	Q 4- 1 7	F U L L Y E A R	Q 1- 1 8	Q 2- 1 8	H 1	Q 3- 1 8	Q 4- 1 8	F U L L Y E A R
R e v e n u e s	3 8 5. 1	4 3 1. 6	8 1 6. 7	4 2 1. 7	7 3 4. 4	1, 9 7 2. 8	4 0 2. 6	4 5 2. 1	8 5 4. 7	4 4 5. 6	7 7 8. 1	2, 0 7 8. 4
% ha c ng e y -o -y	6. 3 %	4. 2 %	5. 1 %	8. 7 %	7. 7 %	6. 8 %	4. 5 %	4. 7 %	4. 6 %	5. 7 %	5. 9 %	5. 4 %
i d i l i t t n e n u s r a m a r g n	1 9 2. 3	2 0 8. 8	4 0 1. 1	2 0 6. 6	3 5 9. 6	9 6 7. 3	1 9 8. 0	2 0 9. 0	4 0 7. 1	2 1 0. 5	3 7 3. 1	9 9 0. 7
%	4 9. 9 %	4 8. 4 %	4 9. 1 %	4 9. 0 %	4 9. 0 %	4 9. 0 %	4 9. 2 %	4 6. 2 %	4 7. 6 %	4 7. 2 %	4 8. 0 %	4 7. 7 %
d j d E B I T D A t a s e u	2. 5 5	4. 0 5	1 0 6. 5	3. 0 5	1 0. 0 5	3 0 9. 5	3. 4 5	5 5. 7	1 0 9. 1	3. 1 5	1 0. 5 7	3 1 2. 8
%	1 3. 6 %	1 2. 5 %	1 3. 0 %	1 2. 6 %	2 0. 4 %	1 5. 7 %	1 3. 3 %	1 2. 3 %	1 2. 8 %	1 1. 9 %	1 9. 4 %	1 5. 1 %
E B I T D A	1. 6 5	3. 0 5	1 0 4. 7	0. 5 5	1 4 8. 5	3 0 3. 7	2. 4 5	2. 6 5	1 0 0 5.	2. 1 5	1 4 7. 4	3 0 4. 5
%	1 3. 4 %	1 2. 3 %	1 2. 8 %	1 2. 0 %	2 0. 2 %	1 5. 4 %	1 3. 0 %	1 1. 6 %	1 2. 3 %	1 1. 7 %	1 8. 9 %	1 4. 7 %
E B I T	3 8. 9	3 8. 9	7 7. 9	3 5. 3	1 3 2. 2	2 4 5. 4	3 9. 3	3 8. 6	7 7. 9	3 5. 0	1 3 0. 0	2 4 2. 9
%	1 0. 1 %	9. 0 %	9. % 5	8. 4 %	1 8. 0 %	1 2. 4 %	9. % 7	8. % 5	9. 1 %	9 % 7.	1 6. % 7	1 1. % 7
P f i b f T t r o e o r e a e s x	3 2. 9	4 3. 7	6. 6 7	3 2. 9	1 1 9. 7	2 2 9. 2	3 2. 2	3 6. 6	6 8. 8	3 0. 0	1 2 0 5.	2 2 3. 9
T a e s x	( 4 ) 7.	( 1 1. ) 7	( 1 9. 1 )	0. 4	( 3 0. 8 )	( 4 9. ) 5	( 8 ) 5.	( 1 ) 7.	( 1 2. 9 )	( 4. 0 )	( 2 3. 1 )	( 4 0. 0 )
Pr f i / ( Lo ) in ing he Gr t ta to t o ss p er ou p	2 5. 5	3 2. 0	5 7. 5	3 3. 3	8 8. 9	1 9. 7 7	2 6. 4	2 9. 5	9 5 5.	2 6. 0	1 0 1. 9	1 8 3. 9
%	6. 6 %	7. 4 %	7. 0 %	7. 9 %	1 2. 1 %	9. 1 %	6. 6 %	6. 5 %	6. 5 %	5. 8 %	1 3. 1 %	8. 8 %

THANK YOU

Contacts:

Investor Relations:

Fabrizio Micheli / Samuele ChiodettoT: +39 0422 4131investor.relations@delonghigroup.com