De'Longhi — Investor Presentation 2021

Jul 29, 2021

FIRST HALF 2021 RESULTS

Disclaimer

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.

Definitions & assumptions

In this presentation:

• Adjusted stands for "before non recurring items and inputed costs of the stock option plans"
• "At constant exchange rates" means escluding 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;
• Q2 stands for second quarter (April 1st June 30th);
• H1 stands for first half (January 1st June 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).

STRONG INVESTMENTS IN NEW MARKETING INITIATIVES

NEW MARKET INITIATIVES: BRAUN 100 YEARS

NEW MARKET INITIATIVES: KENWOOD

Chef Oldani

HIGHLIGHTS

Like for like

H1 - 2021 RESULTS TOP LINE & MARGINS

(Eur million)	H1 2021 -	At constant perimeter	Change of perimeter	H1 2020 -
Revenues	1 431 8 ,	1 312 1 ,	119 8	896 6
change %	59 7%	46 3%
fx ch % at constant	65 4%	50 8%
Ebitda adjusted	251 4	230 0	21 4	111 8
% of revenues	17 6%	17 5%	17 8%	12 5%

• In H1-2021 revenues at constant perimeter grew by 46%, expanding by 51% at constant exchange rates;
• All regions were up double-digit, with a strong recovery in MEIA, expanding at a triple-digit rate vs. previous year;
• In the first half 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.

REVENUES BY REGION (at constant perimeter)

EUR milion	H1-2021 at constant perimeter	var. %	var. % at FX constant	Q2-2021 at constant perimeter	var. %	var. % at FX constant
South	560	51	52	287	45	45
West	2	9%	0%	2	1%	3%
Europe
North	346	46	52	169	35	38
East	3	5%	9%	7	4%	6%
Europe
EUROPE	906	49	52	456	41	42
	5	8%	3%	9	4%	7%
Americas	156	38	50	96	25	37
	0	0%	1%	1	8%	1%
MEIA (MiddleEast/India/Africa)	100 7	124 9%	142 0%	50 7	105 0%	119 4%
Asia-Pacific	148	11	13	82	4	6
	8	5%	9%	7	7%	0%
TOTAL REVENUES	1 312 1 ,	46 3%	50 8%	686 4	36 4%	39 9%

• South West Europe grew by 52% with all the main countries accelerating sharply, in particular the expansion of the coffee category boosted Germany and France at a rate higher than the Group's average;
• North East Europe also recorded a strong growth (+53% at constant fx), sustained by all countries expanding the business at a double digit rate;
• Americas achieved significant growth (+ 38%), despite a negative currency effect of approx. 12%; the area maintained the positive trend highlighted in Q1;
• the strong recovery of the MEIA region (Middle East, India, Africa) was proceeding, closing the H1 up by 142% at constant exchange rates;
• finally, Asia-Pacific maintained a double digit growth in the 6 months, increasing sales by 14% at constant exchange rates.

REVENUES BY MARKET (at constant perimeter)

REVENUES BY PRODUCT LINE (at constant perimeter)

MARKETS PORTFOLIO: NEW vs. OLD PERIMETER

PRODUCT PORTFOLIO: NEW vs. OLD PERIMETER

MARGINS H1 - 2021 RESULTS

	reported
(Eur million)	H1-2021	H1-2020
ind	721	436
. margin	4	3
net
%	50	48
of	4%	7%
revenues
adjusted Ebitda	251 4	111 8
of	17	12
%	6%	5%
revenues
Ebitda	249 4	105 5
%	17	11
of	4%	8%
revenues
Ebit	209 4	66 9
%	14	5%
of	6%	7
revenues
Net Income (pertaining to the Group)	180 8	43 1
%	12	4
of	6%	8%
revenues

• Net industrial margin, equal to 721.4M€ improved from 48.7% to 50.4% (+65.4%) on revenues, thanks above all to higher volumes and the positive contribution of price-mix (32 M€ in the six months);
• adjusted Ebitda amounted to 251.4 M€, equal to 17.6% of revenues; on a like-for-like basis, it stood at 230 M€, with a sharp improvement from 12.5% to 17.5% of revenues;
• finally, net income pertaining to the Group amounted to 180.8 M€, equal to 12.6% of revenues.

ADJUSTED EBITDA BRIDGE (reported)

BALANCE SHEET H1 - 2021 RESULTS

	reported	reported		reported
EUR million	June 30 2021 ,	June 30 2020 ,	Change	Dec 31 ,	Change
			12m	2020	6m
Working Capital Net	63 3	228 4	165 0 -	96 2	32 8 -
Net Equity	1 382 1 ,	1 209 7 ,	172 4	1 267 4 ,	114 7
/ Net debt (Net cash)	217 9	387 9	170 0 -	232 0	14 1 -
/ N C Revenues W	2% 2	6% 10	-8 4 pp	1% 4	-1 9 pp

• Net financial position as at 30.06.2021 stood at 218 M€, slightly lower than the beginning of the year due to the cash out for the dividend (80.8 M€) and the acquisition of the full control of Eversys (129.4 M€).
• Over the last 12 months, the free cash flow before dividends and acquisitions was 450.4 M€, thus almost entirely covering both the M&A deals (acquisition of Capital Brands Holdings 329.3 M€ and Eversys 129.4 M€) and the 162 M€ dividend distribution.
• Net working capital improved significantly 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 2.2%, i.e. a marked reduction vs. last year (10.6%), but more in line with end of 2020.

6 MONTHS NET CASH FLOW (reported)

FY 2021 GUIDANCE: UPWARD REVISION

Massimo Garavaglia, Group C.E.O.:

"For what has been said, we believe we can continue to look with positivity at the evolution of the business in the near future. For this 2021 we now see the Group's revenues (including Capital Brands) grow at constant exchange rates at a rate in the upper end of the range previously communicated (28% - 33%) and an adjusted Ebitdaimproving versus last year, both in value and as a percentage of revenues. Furthermore, the consolidation of Eversys will bring about 2 percentage points of additional revenue growth and an adjusted Ebitda, as a percentage of revenues, in line with the rest of the Group."

new FY 2021 guidance

Revenues growing at constant exch.rates rate in the upper end of the range 28% - 33% (including Capital Brands), adding 2% of revenues including Eversys

Adjusted Ebitda improving as a percentage of revenues vs LY (including Capital Brands and Eversys)

+

Contacts:

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