De'Longhi — Investor Presentation 2022

Mar 10, 2022

INFO

DeLonghi Group (DeLonghi) KENWOOD BRAUN nutribullet. Hriete

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.

Finally, it should be noted that the audit of the Group consolidated financial statements is still ongoing.

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;
• "Organic" stands for at constant exchange rates
• Q4 stands for fourth quarter (October 1st December 31st);
• 12M stands for twelve months (January 1st December 31th);
• "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).

-

GEOGRAPHICAL EXPOSURE: NORTH EAST EUROPE

FUR milion	FY 2021	% of revenues
NORTHERN EUROPE	359	11.1%
EASTERN EUROPE (OTHERS)	339	10.5%
Russia Ukraine	125 34	3.9% 1.0%
T otal North-E as t E urope	857	26.6%
Total revenues	3,222	100.0%

Like for like

(Eur million)	12M 2021 -	At constant perimeter	Change of perimeter	12M 2020 -
Revenues	3 221 6 ,	2 922 1 ,	299 5	2 351 3 ,
change %	37 0%	24 3%
Ebitda adjusted	515 0	456 0	59 0	366 5
% of revenues	16 0%	15 6%	19 7%	15 6%

• The 12M-2021 revenues at constant perimeter grew by 24.3%, (+25.2% organic);
• All regions were up double-digit, with America and Europe still expanding at a significant pace in the last quarter;
• In the last 12 months, consumer demand was the main driver supporting the Group's performance, sustained by the increase in investments in communication, innovation and marketing implemented by the Group.

milion EUR	FY 2021 at constant perimeter	var. %	var. % at FX constant	Q4 2021 at constant perimeter	var. %	var. % at FX constant
South West Europe	1 209 9 ,	26 9%	27 0%	393 3	13 0%	13 0%
North East Europe	823 0	21 9%	23 7%	301 6	11 6%	10 3%
EUROPE	2 033 0 ,	8% 24	6% 25	694 9	4% 12	8% 11
Americas	346 5	8% 29	3% 33	109 6	4% 23	1% 19
(MiddleEast/India/Africa) MEIA	175 0	42 9%	46 4%	34 4	-22 2%	-27 7%
Asia-Pacific	367 7	10 3%	9 2%	139 4	9 9%	7 1%
TOTAL REVENUES	2 922 1 ,	3% 24	2% 25	978 3	4% 11	9% 9

• South-Western Europe achieved double-digit performance both in the twelve months and in the fourth quarter, thanks to a significant expansion of the main countries such as Germany, France, Italy and the Iberian markets;
• similar dynamics was highlighted in North-Eastern Europe, with double-digit growth in the year and in the quarter, where almost all the countries in the region achieved double-digit growth in the 12M, maintaining a significant pace of expansion even in the Q4;
• the MEIA region recorded a growth trend in the twelve months equal to 42.9%, above the Group average, thanks to the positive contribution of all the countries in the area, but down in the Q4;
• the America region recorded an important expansion in the year, achieving double-digit growth supported by a significant acceleration in the coffee segment, also confirmed by the growth in the fourth quarter;
• finally, the Asia Pacific region achieved a growth of 10.3% in 2021, thanks to the double digit rate expansion in the main markets such as China and Hong Kong, Australia and New Zealand. In Q4, the double-digit growth pace of China and Hong Kong accelerated, thus supporting the growth of the entire region (+ 9.9% in the quarter).

REVENUES BY MARKET (AT CONSTANT PERIMETER)

Main Ups & Downs (at constant FX)

DēLonghi Group

REVENUES BY PRODUCT LINE (AT CONSTANT PERIMETER)

Main Ups & Downs (at constant FX)

DēLonghi Group

MARKET PORTFOLIO: NEW vs. OLD PERIMETER

DēLonghi Group

(Dellonghi) KENWOOD BRAUN nutribullet. Ariete

PRODUCT PORTFOLIO: NEW vs. OLD PERIMETER

DēLonghi Group

(Dellonghi) KENWOOD BRAUN nutribullet. Ariete

(Eur	FY	FY
million)	2021	2020
ind . margin net	1 600 2 ,	1 157 1 ,
%	49	49
of	7%	2%
revenues
adjusted Ebitda	515 0	366 5
%	16	15
of	0%	6%
revenues
Ebitda	480 6	343 0
%	14	14
of	9%	6%
revenues
Ebit	386 9	262 0
%	12	11
of	0%	1%
revenues
Net Income (pertaining the Group) to	311 1	200 1
of	9	5%
%	7%	8
revenues

• the net industrial margin , improved in terms of percentage of revenues from 49.2 % to 49.7 % , despite the inflationary pressure on some important cost items whose impact was more than offset by the production efficiency actions and the positive contribution of the price -mix component (121 M€) ;
• adjusted Ebitda amounted to 515 M€ (+ 40.5 %), equal to 16 % of revenues (compared to 15.6 % in 2020), a result even more significant considering the increase (in value and as percentage of revenues) in investments in communication and marketing ;

FY21 ADJ. EBITDA BRIDGE (REPORTED)

DēLonghi Group

INVESTMENTS IN MARKETING AND COMMUNICATION (AT CONSTANT PERIMETER)

A&P investments – last 3 years evolution

A&P on revenues - 2021 quarterly evolution

=FY19 == FY20 == FY21

THE AMBASSADOR CAMPAIGN

DeLonghi Group (DeLonghi) KENWOOD BRAUN nutribullet. Hriete

LA SPECIALISTA ARTE

WE CONTINUE TO INVEST IN new products, enriching THE POSSIBILITY OF CHOICE FOR THE CONSUMERS AND PROVIDE THEM A PLAYFUL AND ENJOYABLE EXPERIENCE

• Net financial position as at 31.12.2021 stood at 425.1 M€, almost 200 M€ higher than last year, thanks to a stronger business expansion.
• Over the last 12 months, the free cash flow before dividends and acquisitions was 407.4 M€, thanks to a strong cash flow from operating activity and despite the cash out related the acquisition for 129.4 M€ and the dividend distribution of 80.8 M€.
• Substantially neutral the management of net working capital (positive for € 5.8 million), where the cash absorption deriving from the increase in inventories (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) was offset by a pro-active management of receivables and payables.

20

FY 2021 RESULTS FY 2022 GUIDANCE

Massimo Garavaglia, Group C.E.O.:

" 2021 was a year of important results both in terms of growth and value creation. These results not only testify to the success of a strategy based on long-term vision, product innovation, manufacturing excellence and continuous investments, but also encourage us to continue on the path we have undertaken, convinced that we can count on structural growth trends in our "core" segments and on the strength of our brands.

The recent geopolitical developments lead us to prudently reconsider the contribution to sales of the two markets involved in the crisis. For the current year we therefore expect organic revenues for the Group in line with last year. Furthermore, with a view to medium-term development, we intend to give continuity to the investment plans in communication and the strengthening of the organizational and production structure already planned, which overall will bring the 2022 adjusted EBITDA to around 450 million Euros".

FY 2022 quidance

ORGANIC REVENUES in line with last year.

Adjusted EBITDA at around € 450 million

DeLonghi Group (DeLonghi) KENWOOD BRAUN nutribullet. Hriete

+

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

DeLonghi Group