El.En. — Investor Presentation 2024

Oct 8, 2024

2nd ANNUAL POLYTEMS HIR ITALIAN DAY IN LONDON

October 10th , 2024

DISCLAIMER ²

Certain statements in this slide show, including those addressing the Company's beliefs, plans, objectives, estimates or expectations of possible future results or events, are forward-looking statements. Forward-looking statements involve known or unknown risks, including general economic and business conditions, and conditions in the industry we operate and may be affected should our assumptions turn out to be inaccurate. Consequently, no forward-looking statement can be guaranteed and actual future results, performance, or achievements may vary materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation about the contents nor to update the forward-looking statements to reflect events or circumstances that may arise after the date hereof.

AGENDA ³

• 1. Overview
• 1. Markets and Growth Drivers 3. Our Strategy and Market Approach 4. Financial Highlights 5. Current Outlook 6. Multiples & Comparables

OVERVIEW

OVERVIEW

5

World Class Hi-Tech company Hi-Tech industrial group providing laser solutions with proprietary technologies and know how developed over 40 years Listed on Euronext STAR Milan of Italian Stock Exchange since year 2000 and member Within Worldwide leaders in its space A PRIMARY PLAYER PROVIDING MEDICAL, INDUSTRIAL AND CONSERVATION LASER SOLUTIONS WORLDWIDE

of Euronext Tech Leaders

Active worldwide on several laser application segments and markets… …progressively widening its globalwide presence achieving continuous growth over the years

imperfections.

Improve the productivity of our customers manufacturing plants also limiting the environmental impact of manufacturing processes minimizing waste, fumes generated by the process, use of chemical additives, and allowing to eliminate the need for inks, solvents or glues within the process. well-being and life quality. In the SURGICAL SECTOR, our minimally invasive technology systems minimize pain, side effects and risks of surgical procedures and hospitalization days. In the AESTHETIC SECTOR, our systems satisfy the growing desire of individuals to improve their appearance also reducing pathological or painful

OUR APPROACH

OUR STRATEGY FOR A SUSTAINABLE FUTURE: Create value over time and be ready to successfully meet the future challenges € >20 MLN Yearly R&D investments > 320 Laser sources installed ISO 9001 e ISO 13485 Sustainalytics Certification for El.En.

R&D

Patents

ISO 14064

PRODUCTS

60.000

worldwide

PEOPLE

2.000 employees

~21% under 30 years 50% of employees hold a university degree WELFARE at the heart of business projects. Workspaces were renewed for several Group companies: employees well-being was increased and plants'energy efficiency as well ⁶ Photovoltaic systems active in 23 ² New photovoltaic plants for 2024

60

specialists

ENVIRONMENT

Self-produced electrical energy share of the 2023 total consumption

Certifications

28% Electrical energy purchased from renewable sources with respect to 2023 total consumption

OUR HISTORY ⁸

80s

surgery and therapy

1981

90s

treatments El.En.S.p.A.listed on the italian stock market

1998

2000

2002

Production of CO² lasers for dermatology, Smartlipo (Deka Mela S.r.l.laserlipolisi®: localized removal of adipose deposits with minimally invasive treatment Acquisition of Cynosure Inc.

2003

Incorporation of El.En.S.n.c Development of short pulse Nd:YAG lasers for dentistry and minimally invasive surgery 1990 - 1993 Incorporation of Deka MELA S.r.l., Lasit S.p.A. ^e Cutlite Penta S.r.l. Smartepil (Deka Mela S.r.l.) - first long pulse Nd:Yag laser for dermatology and hair removal Smartxide DOT® Therapy (Deka Mela S.r.l.) dermatological surgery,anti-aging treatments,removal of pigmented lesions and scars Acquisition of Asclepion GmbH Incorporation of a JV in China: Acquisition of Quanta System Acquisition of Asa

2004

2005

Cynosure IPO on Nasdaq

2007

2008

esthetics and hair removal.

Mediostar XT (Asclepion GmbH) Industrial sector El.En.– creation of the BLADE RF CO² BLADE RF laser sources family Litho (Quanta System S.p.A.) surgical, treatment of kidney stones

2009

Plus RF (Cutlite Penta S.r.l.) with RF El.En. sources for metacrilate and wood cutting systems Incorporation of Esthelogue S.r.l.

2010

Wuhan Penta Chutian Co.Ltd Incorporation of Cutlite Do Brasil Alta Tecnologia Ltda Smartxide² (Deka Mela S.r.l.) laser system with CO2 radio frequency (RF) laser sources for dermatological surgery and aesthetics Mediostar Next (Asclepion GmbH) aesthetics, hair removal

2011

OUR HISTORY ⁹

2012

treatment of vaginal atrophy

2013

2015

enhanced system for laser metal cutting Discovery Pico (Quanta System S.p.A.) tattoo and pigmented lesions removal and dermatological treatments HIRO TT (ASA S.r.l.) painful pathologies of the muscle and skeleton

2016

Monna Lisa TouchTM (Deka Mela S.r.l.) for the

Cyber (Quanta System S.p.A.) surgery, Lithotripsy and BPH Incorporation of second JV Penta Laser Equipment (Wenzhou) Co.Ltd

2017

Big Boy"

2018

Bolt (Penta Chutian e Wenzhou - China) microwaves technology system for body contouring

2019

The Chinese subsidiary Penta Laser Equipment

Fiber Plus (Cutlite Penta S.r.l.) first metal cutting laser system equipped with fiber laser source (Wenzhou) Co.Ltd incorporates Penta Laser Technology (Shangdong) Co.Ltd Acquisition by Quanta System of Galli S.r.l. a precision mechanical components manufacturing facility.

2020

Motus AX with Moveo (Deka Mela S.r.l.) hair removal,removal of pigmented lesions Juliet® (Asclepion GmbH) for the treatment of vaginal atrophy ONDA Coolwaves®(Deka Mela S.r.l.) the first Schwarzy (magnetotherapy) Red Touch (dermatology) Again (hair removal) Dr.Arnold (magnetotherapy) Deka M.E.L.A.S.r.l.and Quanta System S.p.A.join their commercial brand names into Reinassance® for the Italian market Lasit Laser Polska incorporated by Lasit in Chrome Laser Station (dermatology) Lasit Laser Iberica incorporated by Lasit in Spain Acquisition by Penta Laser Zhejiang of Shenzhen Industrial sector RF 1222 CO2 RF laser source "The

2021

Poland

Glide (dermatology)

2022

KBF Laser Tech Co. Ltd Lasit Laser Deutschland GmbH incorporated by Lasit in Germany Lasit Laser UK Ltd incorporated by Lasit in UK

2023

EL.EN. WORLDWIDE ¹⁰

MARKETS AND GROWTH DRIVERS

LASER SURGERY MARKET TRENDS ¹³

MINIMALLY INVASIVE SURGERIES: • Painless procedures

-

-

• Attractive ROI for surgical services providers
• Rapidly Growing Urology laser market
• Consumables revenue stream in Urology

MEDICAL AESTHETICS MARKET TRENDS ¹⁴

• Aging demographics and increasing focus on improving appearance and youthfulness
• Growing interest in non-invasive or minimally invasive procedures and awareness of energybased aesthetic treatments
• Growing global obesity rate
• Reduction in procedure costs, attracting a broader patient base
• Aesthetic procedures becoming part of lifestyle
• Rapid growth expected

MARKET RESEARCHES GROWTH ESTIMATES ¹⁵

GLOBAL MEDICAL LASER MARKET

-

• Research and Markets CAGR 13,2% to 2030

-

AESTHETIC LASER AND ENERGY DEVICES MARKET

\$ 3,7Bn 2023 Market Size

\$ 3,9Bn 2023 Market Size

INDUSTRIAL LASER MARKET TREND ¹⁶

Laser cutting applications:

• Laser power increase + Cost reduction: enhanced flexibility, productivity and quality standards in manufacturing processes
• New application verticals
• Building and construction

Laser marking:

• Products identification and traceability
• Minimal environmental impact

Laser processing market:

• Size: \$17,48 billion in 2021
• Expected CAGR to 2030: 9,1%

Source: Grand view research

OUR STRATEGY AND MARKET APPROACH

OUR KNOWLEDGE ¹⁸

Aesthetics Surgery Dermatology Physiotherapy Cutting Marking Art Conservation Electronics Optics Photonics Mechanics Fluid dynamics Power electronics Software LASER Technical Knowledge Application Expertise

THE LASER ADVANTAGE ¹⁹

• Flexibility
• Speed
• Power
• Precision
• Selectivity
• Effectiveness

MID-TERM STRATEGIC VISION BASED ON: ²⁰

• Continuous investment in R&D: maintaining the unmatched wideness of our product range by innovating existing technologies and developing new ones
• Cooperation with primary research institutions and KOL'S
• Excellent coverage of the target markets based on the widespread and loyal distribution network created over the years
• Focus on innovative products release, technical support and continuous training to our customers
• Unique Multi brand approach

WIDE RANGE OF PRODUCTS IN MEDICAL SECTOR ²¹

Physiotherapy

Body Contouring Skin Rejuvenation

Surgery

..AND IN INDUSTRIAL SECTOR ²²

FINANCIAL HIGHLIGHTS

	INCOME STATEMENT –		FY 2023
Euro '000	31/12/22	%	31/12/23	%	Var. %
Medical	382.063	56,7%	unaudited 392.434	56,7%	2,7%
Industrial	291.518	43,3%	299.856	43,3%	2,9%
Revenues	673.581	100,0%	692.290	100,0%	2,8%
Gross margin	249.695	37,1%	261.430	37,8%	4,7%
Operating Expenses	56.250	8,4%	59.436	8,6%	5,7%
Staff espenses	98.194	14,6%	111.129	16,1%	13,2%
EBITDA	95.251	14,1%	90.866	13,1%	-4,6%
Depr., amort., accruals	14.250	2,1%	18.130	2,6%	27,2%
EBIT	81.001	12,0%	72.736	10,5%	-10,2%
Net financ.income(charges)	(1.934)	-0,3%	(1.533)	-0,2%	-20,7%
Other income (expense) net	(79)	0,0%	(69)	0,0%	-12,9%
EBT	78.988	11,7%	71.134	10,3%	-9,9%
Income taxes	19.953	3,0%	21.068	3,0%	5,6%
Minorities	3.925	0,6%	1.827	0,3%	-53,4%
NET INCOME	55.111	8,2%	48.239	7,0%	-12,5%

	BALANCE SHEET – FY 2023
Euro '000	31/12/22	31/12/23	Var.%
	restated	unaudited
Total non current assets	165.786	166.200	0,2%
Net Working Capital	200.536	230.449	14,9%
Other receivables/payables ST	(80.154)	(54.244)	-32,3%
Net financial position	75.363	54.586	-27,6%
Long term liabilities	18.077	21.533	19,1%
Net Equity	343.455	375.458	9,3%
Net capital employed	268.092	320.872	19,7%
Net Working Capital on sales	29,8%	33,3%
ROCE	30,2%	22,7%
(EBIT/Net capital employed)
Operating Capex	28.514	13.546

Net financial position Half yearly change ²⁷

	INCOME STATEMENT –		H1 2024
Euro '000	30/06/23	%	30/06/24	%	Var. %
Medical	198.505	57,4%	195.069	62,3%	-1,7%
Industrial	147.120	42,6%	117.893	37,7%	-19,9%
Revenues	345.625	100,0%	312.962	100,0%	-9,5%
Gross margin	131.473	38,0%	128.806	41,2%	-2,0%
Operating Expenses	30.622	8,9%	31.394	10,0%	2,5%
Staff espenses	55.197	16,0%	56.020	17,9%	1,5%
EBITDA	45.654	13,2%	41.391	13,2%	-9,3%
Depr., amort., accruals	6.780	2,0%	7.211	2,3%	6,4%
EBIT	38.874	11,2%	34.180	10,9%	-12,1%
Net financ.income(charges)	(1.028)	-0,3%	(468)	-0,1%	-54,5%
Other income (expense) net	(5)	0,0%	4.784	1,5%
EBT	37.842	10,9%	38.497	12,3%	1,7%
Income taxes	10.991	3,2%	11.048	3,5%	0,5%
Minorities	1.075	0,3%	151	0,0%	-86,0%
NET INCOME	25.776	7,5%	27.297	8,7%	5,9%

	BALANCE SHEET – H1 2024
Euro '000	31/12/23	30/06/24	Var.%
Total non current assets	166.200	152.914	-8,0%
Net Working Capital	230.449	234.791	1,9%
Other receivables/payables ST	(54.244)	(49.912)	-8,0%
Net financial position	54.586	68.645	25,8%
Long term liabilities	21.533	18.884	-12,3%
Net Equity	375.458	387.555	3,2%
Net capital employed	320.872	318.910	-0,6%
Net Working Capital on sales	33,3%	37,5%
ROCE	22,7%	21,4%
(EBIT/Net capital employed)
	13.546	8.205

CURRENT OUTLOOK

2024 Guidance ³⁴

EBIT 2024 > EBIT 2023

MULTIPLES & COMPARABLES

MULTIPLES ³⁶

EMAKKE SDIR
CERTIFIED

	MULTIPLES			36
Stockholder's Equity per share		4,8
Price / Book Value Adj.		2,2
EV /EBIT (90% EBIT)		12,9
EV / Sales (90% Sales)		1,4
El.En. Market Cap.		870,4 @	€ 10,87

2,2
870,4 @	€ 10,87
68,6 @	30/06/24
7,5 @	30/06/24
794,2

MULTIPLES ³⁷

	MULTIPLES										37
June 30th, 2024	Price on Oct 4th, 2024	Revenue	Var.% Rev.	EBIT	EBIT %	MK.Cap.	EV	EV/Sales (*)	EV/EBIT (*)	P/E (*)	P/Book Value
Medical/Aesthetic Cutera	\$0,73	\$73	-37%	\$(41)	-56%	\$15	\$363	2,5	n.a.	n.a.	n.a.
InMode	\$15,18	\$167	-31%	\$36	22%	\$1.160	\$436	1,3	6,0	4,6	1,5
Beauty Health	\$1,46	\$172	-16%	\$(39)	-23%	\$181	\$399	1,2	n.a.	n.a.	2,6
Venus	\$0,50	\$34	-16%	\$(13)	-39%	\$4	\$46	0,7	n.a.	n.a.	1,0
Sisram Medical	\$0,52	\$169	-2%	\$17	10%	\$244	\$222	0,7	6,7	6,7	0,5
Classys	€ 37,55	€ 75	26%	€ 40	53%	€ 2.403	€ 2.356	15,8	29,8	32,6	10,9
Industrial
IPG Photonics Co.	\$72,38	\$510	-26%	\$31	6%	\$3.200	\$2.188	2,1	35,1	24,7	1,4
Han's Laser	¥23,53	¥6.304	4%	¥0	0%	¥24.760	¥23.930	1,9	n.a.	9,8	1,6
Bystronic	CHF 335	CHF 331	-29%	-CHF 23	-7%	CHF 611	CHF 210	0,3	n.a.	n.a.	0,9
Amada	1.517 JPY	201.376 JPY	4%	24.399 JPY	12%	517.470 JPY	428.923 JPY	1,1	8,8	11,2	1,0
Yamazaki	287 JPY	1.391 JPY	1,5%	13 JPY	1%	1.310 JPY	2.206 JPY	0,8	86,0	26,2	1,0
HuaGong Tech	¥34,92	¥5.176	4%	¥445	9%	¥35.150	¥35.603	3,4	40,0	28,5	3,6
El.En. (1)	€ 10,87	€ 313	-9%	€ 34	11%	€ 870	€ 794	1,4	12,9	14,5	2,2

El.En. vs. FTSE Star Italy ³⁸

PEERS ³⁹

CONTACTS

El.En. S.P.A. Enrico Romagnoli Investor Relations Manager tel. +39 055-8826807 E-mail: finance@elen.it

POLYTEMS HIR

Financial Communication, IR and Press Office Bianca Fersini Mastelloni - b.fersini@polytemshir.it Silvia Marongiu - s.marongiu@polytemshir.it Tel. +39 06-69923324