Elica — Investor Presentation 2018

Mar 26, 2018

STAR Conference

Milano, March 27, 2018

Elica Corporation

Milan, March 27, 2018

World Wide Player

ELICA CORPORATION INDUSTRIAL SITES: 7

History of Product Innovation

Net Working Capital Minorities 18.2 4.2 2017-2019 Strategic Plan Highlight

Key Drivers to Create Long Term Sustainable Value

High Growing Categories

Addressing Market Regulation Changes

Engage Cross Selling of Air Treatment & IoT

Strategic Plan Key Financial Statements

Strong organic growth while increasing profit margins

	2016A	2017P	CAGR 17-19E
Net Sales YoY %	439.3	479.3 9.1%	5.6%
EBITDA Adj % on NS	36.8 7.4%	34.9 7.7%	12.3%
EBIT Adj % on NS	13.7 3.1%	16.3 3.4%	13.7%
NFP NFP	60.8	69.3	73.0
RONA* Return on Net Asset	2.1%	8.1%	10.0%

* Data in Value

2018: The Beauty Is Yet to Come

Reveal @

New brand campaign launch: media investment tripled and net investment doubled vs 2017*;

NikolaTesla range extension: from 2 to 8 models;

Unparalleled design;

Major Industry Event: 2018 FTK _ Salone del Mobile di Milano

PRESENCE

• 350 k visitors expected globally
• Twice surface vs last edition
• Twice investment vs last edition

ENGAGEMENT

• Launch of the new brand campaign
• 50+ revolutionary new products showcased
• 36 Showcooking events showcasing product capabilities

CONVERSION

• Trade Partner dedicated lounge
• Press events within FTK and Fuorisalone
• 300 people a day hospitality service

M&A

Acquisition of 30% Putian Shareholding

• Elica to acquire 30% of the share capital of the Chinese subsidiary Zhejiang Putian Electric Co., Ltd. (Putian) from minority shareholder Du Renyao
• 15 CNYM ( about 1.9 €M) consideration paid
• The aim of the operation is to extend governance over the Chinese subsidiary in order to drive forward company results
• 2017-2019 Objectives: no significant impacts are expected.

Gutmann Sale Highlights

• Elica has sold 100% of Exklusiv-Hauben Gutmann GmbH (Gutmann) to Manuel Fernandez*
• 2.5 €M consideration payable in five traches within 2023
• Elica ceded to Manuel Fernandez** also a Gutmann's financial receivable of 11.2 €M for consideration of Euro 1
• The aim of the operation is to avoid a complex turn-around of German subsidiary, focusing Group's resources and CapEx on gainful business streams
• 2017-2019 Objectives impacts: an improvement on the margin growth and on Return on Net Capital Employed is expected.

• Manuel Fernandez recognises to Elica S.p.A. a call option on 100% of the share capital of Gutmann

** Elica S.p.A. is recognized a call option on the financial receivable ceded, exercisable at a price of Euro 1

2017 Preliminary Results

Q4 '17 Highlights

• Market demand constant growth (+3.1%)
• Net Sales increase 2.8%, and 6.1% at same Group consolidation scope*, driven by Own brand business performance +13.2%*
• EBITDA adjusted** increase 31%, driven by increasing volume trend, negatively impacted by supply chain increasing costs
• Net Financial Position at 69.3 €M, better the expectations
• 2017FY Guidance exceeded

* Data do not includes sold German subsidiary.

** Data adjusted by non recurring items, restructuring costs and non-ordinary charges

Q4 '17 - Cooker Hoods Industry Unit Shipments*

Volume Data_ Change % vs. Y-1

	Q4 '17	Q1 '17 12M '17
EMEA	3.7%	3.1%
Americas	2.8%	2.7%
Asia	2.7%	2.1%
World	3.1%	2.5%

12M 2017 Sales Breakdown by Geography

Change % vs Y-1

	12M '17*
EMEA	10.7%
Americas	5.5%
Asia	13.9%
Total	10.2%

* Data includes German subsidiary performances until the date of disposal.

12M '17 Consolidated Income Statement €M

	12M '17	12M '16	Δ%16-17
Net Sales	479.3	439.3	9.1%
EBITDA Adj	36.8	32.4	13.8%
%	7.7%	7.4%	30 b.p.
EBIT Adj	16.3	13.7	19.2%
%	3.4%	3.1%	30 b.p.
EBIT	14.0	3.6	294.2%
%	2.9%	0.8%	210 b.p.
Net Result	1.4	(5.5)	125.3%
%	0.3%	(1.3)%	160 b.p.
EPS* – Euro cents	0.27	(8.97)	103.0%

* EPS as at December 31 is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data.

Q4 '17 Consolidated Income Statement €M

	Q4 '17	Q4 '16	Δ% 16-17
Net Sales	121.6	118.3	2.8%
EBITDA Adj	9.6	7.4	31.0%
%	7.9%	6.2%	170 b.p.
EBIT Adj	4.7	2.5	91.3%
%	3.9%	2.1%	180 b.p.
EBIT	4.0	(5.9)	167.1%
%	3.3%	(5.0)%	830 b.p.
Net Result	3.9	(9.0)	143.3%
%	3.2%	(7.6)%	1080 b.p.
EPS* – Euro cents	4.96	(13.90)	135.7%

* EPS as at December 31 is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data.

12M '17 Marginality Key Drivers

Change vs. Y-1

	12M '17
Volume/Price/Mix	+++
Operations efficiency	- -
Currency	+
Cost efficiency	-
EBITDA Adj	4.5

Net Working Capital as of December, 31

€M

	12M'13 Q4 '17	12M'13 Q4 '16	Δ
Trade receivables	75.9	70.6	5.4
% on annualized sales	15.8%	16.1%	(30) b.p.
Inventories	73.3	67.7	5.6
% on annualized sales	15.3%	15.4%	(10) b.p.
Trade payables	(120.5)	(114.8)	(5.7)
% on annualized sales	(25.1)%	(26.1)%	100 b.p.
Managerial Working Capital	28.7	23.5	5.2
% on annualized sales	6.0%	5.3%	70 b.p.
Short term assets & liabilities	(14.7)	(11.8)	(2.9)
% on annualized sales	(3.1)%	(2.7)%	(40) b.p.
Net Working Capital	14.0	11.7	2.3
% on annualized sales	2.9%	2.7%	20 b.p.

25

Consolidated Cash Flow as of December, 31 €M

	Q4 '17	Q4 '16	12M '17	12M '16
Operating Cash Flow	17.0	13.0	29.0	28.8
CapEx	(9.3)	(9.1)	(31.4)	(28.3)
of which M&A Operations	0.0	0.0	(3.5)	0.0
Cash Flow from Financing Activities	(0.5)	(1.5)	(5.9)	(7.2)
FX impact on NFP	(0.4)	(0.6)	(0.2)	(1.0)
∆ Net Financial Position	6.8	1.8	(8.6)	(7.7)

Consolidated Statement of Financial Position as of December, 31 €M

	2017	2016		2017	2016
Net Operating Fixed Assets	158.1	156.5	Net Financial Position	69.3	60.8
Net Working Capital	14.0	11.7	Group Equity Minorities	99.5 5.0	103.9 5.3
Net Financial Assets	1.6	1.8	Total Shareholders' Equity	104.5	109.3
Net Capital Employed	173.8	170.0	Total Sources	173.8	170.0

B2C 2017 Highlights

• Elica own brands: + 17.2% vs 2016;
• Geographic expansion: massive growth of Elica brand in India, France and Italy;
• NikolaTesla key contributor to revenue growth and product range diversification

2017FY Guidance exceeded

OBJECTIVES	Guidance	2017FY Preliminary
Group Net Sales growth	+9%	+9.1%
EBITDA Adj* growth	+13%	+13.8%
EBIT Adj* growth	+10%	+19.2%
Net Financial Position	74.8 €M	69.3 €M
RONA**	7.0%	8.1%

Disclaimer

This presentation contains forwards-looking information and statements about Elica S.p.A and its Group. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance.

Although the management of Elica S.p.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Elica are cautioned that forward-looking information and statements are subject to various risk and uncertainties, many of which are difficult to predict and generally beyond the control of Elica S.p.A.; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements.

These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, Elica S.p.A. does not undertake any obligation to update any forward-looking information or statements.