De'Longhi

Investor Presentation • Nov 10, 2021

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This presentation might contain certain forward-looking statements that reflect the company's current views with respect to future events and financial and operational performance of the company and its subsidiaries.

Forward looking statements are based on De' Longhi's current expectations and projections about future events. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments, many of which are beyond the ability of De' Longhi to control or estimate. Consequently, De' Longhi S.p.A. cannot be held liable for potential material variance in any looking forward in this document.

Any forward-looking statement contained in this presentation speaks only as of the date of the document. Any reference to past performance or trends or activities of De' Longhi S.p.A. shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. De' Longhi S.p.A. disclaims any obligation to provide any additional or updated information, whether as a result of a new information, future events or results or otherwise.

This presentation does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

The manager responsible for preparing the company's financial reports declares, pursuant to paragraph 2 of Article 154-bis of Legislative Decree no. 58 of February 24 1988, that the accounting information contained in this presentation corresponds to the results documented in the books, accounting and other records of the company.

In this presentation:

• Adjusted stands for "before non recurring items and notional cost of the stock option plans"
• "At constant exchange rates" means excluding the effects of exchange rates' variations and of hedging derivatives
• ForEx or FX stand for Foreign Exchange Rates;
• "Like-for-like" or "LFL" stands for at constant perimeter;
• "M" stands for million and "bn" stands for billion;
• Q3 stands for third quarter (July 1st September 30th);
• 9M stands for nine months (January 1st September 30th);
• Reported stands for official data including the consolidation of Capital Brands Holdings Inc. and its subsidiaries since January 1st (following the acquisition finalized on December 29th , 2020) and the consolidation of Eversys since April 1st (following the acquisition finalized on May 3rd, 2021).

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On Sept. 2nd we launched our first global campaign in the coffee starring Brad Pitt, with the goal to affirm the De' Longhi brand as the Global Leader and Authority in the Coffee space for households.

The campaign is part of our communication strategy as foreseen in our Medium Term Plan

The campaign is aimed

• to increase penetration of machines working with fresh ingredients worldwide
• to position De' Longhi as the premium brand offering the best coffee transformation systems across all relevant segments
• to build a loyal community of consumers by crafting a best in class end to end experience

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9 MONTHS 2021 RESULTS THE AMBASSADOR CAMPAIGN HAS BEEN SHOWING UP IN PREMIUM AND SUPER- PREMIUM LOCATIONS ALL OVER THE PLACE

quality media: prime time TV (first time in some markets), Digital Out of Home, High end Print, Premium in Store execution, Social Media.

Full-auto coffee machine A user-friendly interface and a customized selection of beverages, delivered with

just "one touch"

Pump coffee machine Authentic manual experience; simple and rewarding thanks to a full set of Barista tools

Pump coffee machine The stylish pump, with My Latte Art steam wand; a better result in cup thanks to the bigger capacity of the filters

Kitchen machine Direct to bowl weighing, plus you can customise your machine with 8 different colour PopTops

Kitchen machine 1200W motor and the .85 silver model feautures high quality stainlesssteel tools

sleek new makeover and includes a host of new features

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In order to step up competitiveness, the De' Longhi Treviso plant invested in digital and analytics to become:

• more agile (reducing minimum order quantity and lead time),
• more productive (improving labour productivity),
• achieving high standard quality (improving field quality, obtaining Food and Beverage industry certification)

The De' Longhi's Italian plant has been admitted to the Global Lighthouse Network of the WORLD ECONOMIC FORUM, a community of world leading manufacturers, driving the Fourth Industrial Revolution identified by: agility and customer centricity, supply chain resilience, speed and productivity and ecoefficiency. The G.L.N. is a project of the World Economic Forum in collaboration with McKinsey & Co

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(Eur million)	9M - 2021	At constant perimeter	Change of perimeter	9M - 2020
Revenues	2,149.5	1,943.9	205.6	1,473.2
change %	45.9%	31.9%
at constant fx ch. %	49.2%	34.4%
Ebitda adjusted	357.0	314.9	42.1	208.7
% of revenues	16.6%	16.2%	20.5%	14.2%

• The 9M-2021 revenues at constant perimeter grew by 31.9%, expanding by 34.4% at constant exchange rates;
• All regions were up double-digit, with America and MEIA still expanding at a significant pace of growth in the last quarter;
• In the first nine months of 2021 consumer demand was the main driver supporting the Group's performance, reinforcing the positive effect of 2020 new products launches and increased spending in communication and marketing activities.

EUR milio n	9 months 2021 at c ons tant pe rime te r	var. %	var. % at c o ns tant FX	Q3 2021 at c ons tant pe rime te r	var. %	var. % at c o ns tant FX
S outh We s t E urope	816.6	35.0%	35.0%	256.3	8.5%	8.5%
North E a s t E urope	521.5	28.7%	32.6%	175.2	3.8%	4.2%
EUROPE	1,338.1	32.5%	34.0%	431.5	6.6%	6.7%
Ame ric as	236.8	33.0%	40.4%	80.8	24.4%	23.5%
MEIA (Middle Eas t/India/Afric a)	140.6	79.7%	88.3%	40.0	19.3%	16.5%
As ia-Pac ific	228.3	10.5%	10.5%	79.5	8.7%	4.4%
TOTAL REVENUES	1,943.9	31.9%	34.4%	631.8	9.6%	8.9%

• o South-West Europe in the quarter achieved high single digit growth, confirming the positive trend already highlighted in the first phase of the year; in continuity with the previous months, Germany and France achieved double digit growth, together with other countries such as Austria and Greece;
• o North-East Europe grew by 3.8% in the quarter (4.2% at constant exchange rates), thanks to the strong expansion of Russia and the Scandinavian Peninsula;
• o the Americas region confirmed a double digit growth rate (+ 24.4%) in the quarter, in line with the strong trend highlighted since the beginning of the year;
• o in the quarter MEIA achieved robust double digit growth, maintaining solid expansion in the nine months, with a growth rate at constant exchange rates of 88.3%;
• o Asia Pacific region grew at a high single digit rate in the quarter, thanks in particular to the development of Australia, New Zealand and South Korea.

Main Ups & Downs (at constant FX)

Main Ups & Downs (at constant FX)

	reported
(Eur million)	9M-2021	9M-2020
net ind. margin	1,079.7	721.6
% of revenues	50.2%	49.0%
adjusted Ebitda	357.0	208.7
% of revenues	16.6%	14.2%
Ebitda	354.1	200.4
% of revenues	16.5%	13.6%
Ebit	291.9	142.5
% of revenues	13.6%	9.7%
Net Income (pertaining to the Group)	243.5	104.0
% of revenues	11.3%	7.1%

• Net industrial margin, equal to 1,079.7M€ improved by 49.6% from 49% to 50.2% of revenues, thanks above all to higher volumes and the positive contribution of price-mix (58.1 M€ in the nine months);
• adjusted Ebitda amounted to 357 M€, equal to 16.6% of revenues; on a like-for-like basis, it stood at 314.9 M€, with a sharp improvement from 14.2% to 16.2% of revenues;
• net income pertaining to the Group amounted to 243.5 M€, equal to 11.3% of revenues (up from 7.1%).

EUR million	reported Sept. 30, 2021	reported Sept. 30, 2020	Change 12m	reported Dec. 31, 2020	Change 9m
Net Working Capital	123.5	222.1	-98.6	96.2	27.4
Net Equity	1,453.4	1,265.3	188.1	1,267.4	186.0
Net debt / (Net cash)	216.1	451.5	-235.5	232.0	-15.9
N.W.C. / Revenues	4.1%	9.8%	bps 5 7 -	4.1%	0 0 bps

• Net financial position as at 30.09.2021 stood at 216.1 M€, slightly lower than the beginning of the year due to the cash out for the dividend (80.8 M€) and acquisitions (134.1 M€).
• Over the last 12 months, the free cash flow before dividends and acquisitions was 389.5 M€, thus almost entirely covering both the M&A deals 463.4 M€ and the 161.6 M€ dividend distribution.
• Net working capital, as ratio on revenues, didn't change vs. last year: the increase in inventories was widely offset by an increase in trade payables in the 12 months, thus bringing the ratio of net working capital to revenues down to 4.1%, i.e. a marked reduction vs. last year (9.8%), but more in line with end of 2020. The inventory level grew both compared to 2020 and at the beginning of the year, due to the development of the business in the coming months and an increased stocking of products and components in light of the tensions in the global supply chain.

Massimo Garavaglia, Group C.E.O.:

"The third quarter showed a robust growth trend at a high single digit rate, despite the challenging comparison with the same quarter of last year, which recorded a tremendous growth of +26% versus 2019. The exceptional results obtained in this macroeconomic environment were accompanied by the planned acceleration of investments in communication and marketing, which found maximum expression in the launch of the Group's first global campaign starring Brad Pitt, the Group's new Ambassador and perfect icon to represent the path we are making towards the affirmation of our brands in the "Life-style" space. For this 2021 we believe we can continue to look positively at the evolution of the business, in the face of the growing global difficulties in the distribution and production areas, and therefore we confirm the targets and guidance for this 2021 previously communicated."

FY 2021 guidance (confirmed)

REVENUES growing at constant exch.ratesrate in the upper end of the range 28% - 33% (including Capital Brands); Eversys is seen adding 2% of growth.

Adj. EBITDA improving in value and as a percentage of revenues vs last year (including also both Capital Brands and Eversys)

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Contacts:

9 MONTHS 2021 RESULTS

Investor Relations:

Fabrizio Micheli, Samuele Chiodetto T: +39 0422 4131 e-mail: investor.relations@delonghigroup.com

Media relations:

Mattia Rosati T: +39 0422 4131 e-mail: media.relations@delonghigroup.com

On the web: www.delonghigroup.com