De'Longhi — Investor Presentation 2021

Mar 25, 2021

DēLonghi Group ANALYST DAY 2021

INFO

DIGITAL
SIGN

25TH MARCH 2021

AGENDA OF THE DAY

TIME		SUBJECT	SPEAKER(S)
9:00	25'	2020 overview and the years ahead	Massimo Garavaglia	Chief Executive Officer
5' break
9:30	20'	Commercial strategy Opportunities of E-commerce	Paul Accornero Filippo Olearo	Chief Commercial Officer Head of global E-retailer and E-commerce
5' break
9:55	20'	Brand and communication strategy NPD: a case study	Fabrizio Campanella Nicola Serafin	Chief Marketing Officer Chief Operation & Technical Officer
10:20	20'	Industrial platform	Nicola Serafin	Chief Operation & Technical Officer
5' break
10:45	20'	3 years plan	Marco Cenci	Chief Strategy & Control Officer
5' break
11:00	$20^{\circ}$	Capital allocation and M&A strategy	Massimo Garavaglia	Chief Executive Officer
11:30	30'	Q&A Session

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

THE AGENDA OF THE DAY: THE SPEAKERS

DēLonghi Group

erAun KENWOOD nutribullet. - Ariete

FY 2020: RESILIENCE PUT TO THE TEST

2020: A YEAR OF IMPORTANT ACHIEVEMENTS...

..... WITNESSING THE GROUP'S RESILIENCE TO A CHALLENGING ENVIRONMENT

DēLonghi Group

erAun KENWOOD nutribullet. - Ariete

FY 2020: A RECORD GROWTH

NET REVENUES:

$2,351 \text{ M} \in +11.9\%$ +12.4% NORMALIZED +13.8% ORGANIC

FY 2020: STRONG MARGINS...

DēLonghi Group

DeLonghi

erAun KENWOOD nutribullet. - Ariete

_____________________ (1) EUR billion / % growth, global market excluding USA, India and China

(1) 2017 -2020, global markets excluding USA, India and China

____________________

(2) % of units sold per price range, 2020, global market ex.USA, India and China

THE YEARS AHEAD

REDESIGNING THE CONSUMER JOURNEY $\mathbf{\hat{\mathbb{S}}}\mathbf{}$

DēLonghi Group

THE YEARS AHEAD

PAUL ACCORNERO

CHIEF COMMERCIAL OFFICER

$\mathcal{S}_{\mathbf{L}}$

FILIPPO OLEARO

HEAD OF GLOBAL E-RETAILER AND E-COMMERCE

ACCELERATING GROWTH BEYOND CORE

DēLonghi Group

BRAUN nutribullet. - Ariete KENWOOD

ADDITIONAL DISTRIBUTION CHANNELS

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

EXPLOITING GEOGRAPHIES

FOLLOWING MIDDLE CLASS SPENDING POWER

DE' LONGHI IS UNIQUELY POSITIONED TO CAPTURE THE OPPORTUNITY OF INCREASING SPENDING POWER OF THE MIDDLE CLASS

West to East. Wolfensohn Center for Development at Brookings

DēLonghi Group

KENWOOD

erAun

nutribullet. - Ariete

ACCELERATION IN GREATER CHINA

• DRIVING ESPRESSO COFFEE PENETRATION $\bullet$
• LEVERAGING ESPRESSO LIFESTYLE APPEAL $\bullet$
• OMNI CHANNEL TRANSFORMATION $\bullet$
• STRATEGIC PARTNERSHIPS (ON-LINERS, INFLUENCERS, $\bullet$ LUXURY LIFESTYLE BRANDS)

DēLonghi Group

BRHUN nutribullet. -Ariete KENWOOD

ACCELERATION IN GREATER CHINA

POP UP STORES

FAIRS & EXPOS

erAun nutribullet. - Ariete

ACCELERATION IN NORTH AMERICA: COFFEE

CONSUMERS LOOKING TO REPLICATE THEIR OUT-OF-HOME COFFEE RITUALS AT-HOME

ESTABLISHING DE' LONGHI ESPRESSO MACHINES AS AN ESSENTIAL PART OF THE HOME

DēLonghi Group

BRAUN nutribullet. -Ariete KENWOOD

ACCELERATION IN NORTH AMERICA: FOOD

ESTABLISHED PRESENCE WITH LEADING BRANDS

nutribullet.

BRAUN

DēLonghi Group

erAun nutribullet. - Ariete KENWOOD

ADDRESSING THE NEW

DIGITAL AND ON-LINE

DēLonghi Group

erAun nutribullet. - Ariete KENWOOD

THE DIGITAL JOURNEY

The new Bean Adapt Technology is the ultimate De Longhi innovation of treating your coffee

Straight to the soul of coffee.

With the Bean Adapt Technology, the grinding level, the infusion temperature and the dose of coffee are automatically set for each and every variety of coffee beans, ensuring the perfect coffee extraction while preserving and exalting

coffee are automatically set for each and every variety of coffee beans, ensuring the perfect coffee extraction while preserving and exalting the peculiar flavours and aromas of the coffee variety. You only have to choose the beans you like the most, connect to this Coffee Link App and, after a few taps, the machine automatically takes care of your favorite beans by adapting the extraction parameters to let you enjoy the truest coffee aromas.

The quality of the extraction determines the thickness of the crema on the surface and gives the espresso its fine texture and persistency. Under-extraction happens when the water flow passes through the coffee grains too quickly as the coffee has been coarsely ground. The coffee is less rounded, the crema tends to dissolve and Over-extraction produces a cup with a rather dark colour that is excessively bitter and offers a to the edge of the cup and has a hole in the centre. The Bean Adapt Technology assures you the perfect espresso extraction, with a compact and dense crema with a hazelnut colour where all the aromatic flavours of your coffee beans are retained.

KENWOOD BRAUN nutribullet. -Ariete

E-COMMERCE & COVID-19

DēLonghi Group

erflun nutribullet. - Ariete KENWOOD

E-RETAILER GROWTH AND WORKSTREAMS

NEW E-COMMERCE PLATFORM

Single Customer View

THE CONSUMER JOURNEY CONTINUES ...

COMPREHENSIVE BRAND PORTFOLIO

DēLonghi Group

DeLonghi

brAun nutribullet. - Ariete KENWOOD

• •
• •
• •

•

•

•

•

(*) Global SDA markets, EUR values, ex-USA, India and China

• •
• •
• •

•

•

•

•

COMMUNICATION PROJECTS

DēLonghi Group

BRHUN nutribullet. -Ariete KENWOOD

INCREASING MARKETING SPEND

•

•

• •
• •
• •

Japan Good Design

Award Winner

Kenwood wins brand of the year

Source: Internal company analysis 47

NEW PRODUCT DEVELOPMENT THROUGH A CASE

$8$

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

SPECIALTY COFFEE OFFERING IS GROWING

THIRD WAVE OF COFFEE VARIETY

DēLonghi Group

BRĤUN KENWOOD nutribullet. - Ariete

BUT ONE MACHINE FITS ALL BEANS

DēLonghi Group

KENWOOD BRAUN nutribullet. - Ariete

TECHNOLOGIES

PRODUCT

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

PROCESS

PRECISION SENSING AND MACHINE LEARNING ALGORITHM

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

COFFEE LINK APP + BEAN ADAPT TECHNOLOGY

BRAUN nutribullet. Ariete KENWOOD

THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO

STEP 1: BEANS SELECTION

Choose the coffee beans you like the most.

And do not forget to refill the bean container.

Step 1: Beans selection

Step 2: Coffee Link App

Step 3: Bean Adapt Technology

Step 4: The perfect extraction

DēLonghi Group

DeLonghi

erAun nutribullet. - Ariete KENWOOD

THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO

STEP 2: COFFEE LINK APP

Connect your device with
the machine.

In few taps, the machine is ready to deliver your cup of coffee.

Step 1: Beans selection

Step 2: Coffee Link App

Step 3: Bean Adapt Technology

Step 4: The perfect extraction

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO

STEP 3: BEAN ADAPT TECHNOLOGY

The machine takes care of your favorite beans.

Grinding level, dosing and temperature of extraction ae set for each coffee

variety.

Step 1: Beans selection

Step 2: Coffee Link App

Step 3: Bean Adapt Technology

Step 4: The perfect extraction

DēLonghi Group

KENWOOD BRHUN nutribullet. -Ariete

THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO

STEP 4: THE PERFECT EXTRACTION

A compact and dense
crema with a hazelnut colour.

Your cup of coffee is now ready to be enjoyed!

Step 1: Beans selection

Step 2: Coffee Link App

Step 3: Bean Adapt Technology

Step 4: The perfect extraction

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

THE OPERATIONS FOOTPRINT

SUSTAINABILITY IN MANUFACTURING

PROJECT A

ZERO WASTE OF GROUND COFFEE POWDER IN FINAL MACHINE TESTING THROUGH ADVANCED LASER SETTINGS CALIBRATION

PROJECT B SCRAP REDUCTION -30%, THROUGH DIGITALIZAZION AND REAL TIME PERFORMANCE MANAGEMENT

PROJECT C

REDUCTION IN DEPENDANCE FROM CARBON FOSSIL SOURCES THROUGH RENEWABLE ENERGIES (FOTOVOLTAIC) AND HIGH EFFICIENCY IMPLEMENTATIONS (TRI-GENERATION)

DēLonghi Group

erflun KENWOOD nutribullet. - Ariete

GROWTH DRIVERS: COFFEE

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

GROWTH DRIVERS: FOOD PREPARATION

FOOD PREPARATION BOOST

GROWTH MATCHED BY INCREASED $\bullet$ CAPACITY

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

S

3YR MTP: THE FOUR PILLARS

REVENUES AT CONSTANT FX

* EQUAL TO MID TO HIGH SINGLE DIGIT GROWTH AT A CONSTANT PERIMETER

erflun KENWOOD nutribullet. -Ariete

3YR MTP: SALES BRIDGE BY CATEGORY

3YR MTP: COFFEE

DēLonghi Group

erAun nutribullet. - Ariete KENWOOD

3YR MTP: COOKING & FOOD PREPARATION

3YR MTP: COMFORT & HOME CARE

DēLonghi Group

Reported figures

CAPITAL ALLOCATION

DēLonghi Group

BRAUN KENWOOD nutribullet. - Ariete

THE CASH GENERATION FOR THE FUTURE

DēLonghi Group

KENWOOD BRAUN nutribullet. -Ariete

CASH GENERATION FOR THE FUTURE

BRHUN nutribullet. -Ariete KENWOOD

THE CAPITAL BRANDS AND EVERSYS ACQUISITIONS

DēLonghi Group

BRAUN KENWOOD nutribullet. -Ariete

STRATEGY + EXECUTION = SUCCESS

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.