Elica

Investor Presentation • Jul 30, 2019

GROUP CONSOLIDATED RESULTS H1 2019

TUESDAY 30TH OF JULY, 2019

AGENDA

1	H1 2019 HIGHLIGHTS	2	MARKET SCENARIO	3	NET SALES DYNAMICS
4	ECONOMICS & FINANCIALS	5	PRODUCT & BRAND	6	CONCLUSIONS & TAKEAWAYS

H1 2019 HIGHLIGHTS

H1 & Q2 2019 HIGHLIGHTS

• Persisting Negative WW Industry (-1,0%) (*)
• Net Sales 239 M€, -1.9% vs H1 2018 (-3,1% Organic):
• Cooking: +0,3% vs. H1 LY, despite negative market demand and persisting B2B EMEA drop from Q4 2018
• Motor Division: -15,2% vs. H1 LY, penalised by EU and Turkish demand
• "OWN Brand" @ 51,4% of cooking business sales, growing ≈9% vs H1 2018
• Maintaining a Solid Operating Performance growth in a Top line stress scenario
• Q2 ADJ EBITDA: 11,0 €M @ 9.0% on Net Sales (8,4% @ 2018 IFRS, +10 bps vs. Q2 2018)
• Q2 NET PROFIT: 1,0 €M vs. 0,6 €M Q2 2018 (+76,9%)
• NFP (62,7) €M vs (69,9) €M H1 2018 (@ 2018 IFRS) (**)

MARKET SCENARIO

COOKER HOODS INDUSTRY SHIPMENTS (UNITS)

• Improving EU thanks to positive demand in Nordics and France; negative East EU (Turkey)
• Worsening NA, slowing down overall Americas trend while YoY outlook remains "flat"

Volume Change% vs . Y-1	Q2'19	H1 '19
Western Europe	1.0%	(0.2%
Eastern Europe (incl. CIS)	(1.3%)	$(1.1\%)$
Europe	0.0%	$(0.6\%)$
EMEA	0.1%	(0.5%)
North America	(6.5%)	(2.1%)
Latin America	(1.1%)	0.1%
AMERICAS	(4.5%)	(1.3%)
ASIA	(0.8%	$(0.6\%)$
WORLD	$(1.0\%)$	(0.7%)

NET SALES DYNAMICS

H1 2019 SALES KEY DRIVERS

▪ Net Sales decrease of (1.9%), driven by negative industry trend (EMEA, NA) and persisting B2B EMEA demand drop from Q4 2018, partially offset by strong B2C price/mix effect and positive trend on other EMEA OEM Customers.

	H1			Q2
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price/Mix	(7,5)	(3.1%)	Vol/Price/Mix	(3,9)	(3.2%)
Currency	2,9	1.2%	Currency	1,6	1.3%
Reported	(4,6)	(1.9%)	Reported	(2,3)	(1.9%)

H1 2019 REGIONAL SALES DISTRIBUTION

• EMEA negative performance driven by OEM customers trend and negative industry partially balanced by Elica branded products positive performance
• YoY Growth in Americas and Asia despite decreasing market demand vs. H1 2018

H1 2019 SALES by BUSINESS - BRAND

• Cooking Business Sales +0,3% vs LY despite Negative Industry and B2B EMEA drop
• Motor Division penalised by overall demand trend and Turkish market dynamics
• OWN BRANDS @ 51%

ECONOMICS & FINANCIALS

H1 2019 EBITDA

• EBITDA @ 2018 IFRS 8,3%: +10 bps vs. LY despite -1,9% Net Sales
• 2,0 M€ Adjustment (CEO agreement, Restructuring Costs), 4,0 M€ in 2018 (Gutmann)

H1 2019 PROFITABILITY KEY DRIVERS

• Negative Volume effect partially recovered through Price/Mix, fully offset through Manufacturing Costs and SG&A containment
• IFRS 16 effect on YoY comparison

H1
Change vs Y-1
€M Volume/Price/Mix	--
Operations Efficiency	-
Currency	+
Cost Efficiency	++
IFRS 16	+
ADJ EBITDA (€M)	1,2

Q2
Change vs Y-1
€M Volume/Price/Mix	--
Operations Efficiency	-
Currency	+
Cost Efficiency	++
IFRS 16	+
ADJ EBITDA (€M)	0,7

H1 2019 NET PROFIT

• Net Profit attributable to the Group improving 33,4% vs. H1 2018 (+0,3 M€)
• India ownership share change and Japan performance effect over Minorities increase

NET FINANCIAL POSITION

• Operating CF impacted by Inventory increase to support B2C growth and product availability in key markets.
• CAPEX reduction of 4,4 M€ vs. H1 2018

PRODUCT & BRAND

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PRODUCT & BRAND CAMPAIGNS

CONCLUSIONS & TAKEAWAYS

CONCLUSIONS & TAKEAWAYS

▪ H1 2019

• Negative WW Industry trend, improving West Europe (*)
• Net Sales -1.9% (-3,1% Organic)
• "OWN Brand" > 51% of cooking business sales, growing ≈9%
• Maintaining a Solid Operating Performance growth in a Top line stress scenario
• Improving NFP (62,7) €M vs (69,9) €M H1 2018 (**)

▪ H2 2019 OUTLOOK

• WW Industry: «FLAT» vs 2018
• Net Sales: IMPROVEMENT vs H2 2018
• Capex: ≈ 4,5% on Net Sales

▪ NEW STRATEGIC PARTNERSHIP

ANNEXES 1 FINANCIAL HIGHLIGHTS

CONSOLIDATED INCOME STATEMENT

(*) EPS 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. 23

NET WORKING CAPITAL

€Μ	H1 '19	H1 '18	Δ
Trade receivables	62.8	72.6	(9.8)
% on annualized sales	13.2%	14.9%	$(170)$ bps
Inventories	79.4	77.4	1.9
% on annualized sales	16.6%	15.9%	70 bps
Trade payables	(115.4)	(125.4)	10.0
% on annualized sales	$(24.2)\%$	$(25.8)\%$	160 bps
Managerial Working Capital	26.8	24.7	2.1
% on annualized sales	5.6%	5.1%	50 bps
Short term assets & liabilities	(12.3)	(13.7)	1.4
% on annualized sales	$(2.6)\%$	$(2.8)\%$	20 bps
Net Working Capital	14.5	11.0	3.5
% on annualized sales	3.0%	2.3%	70 bps

CONSOLIDATED CASH FLOW

(*)

CONSOLIDATED B/S

	2019	2018		2019	2018
Net Operating Fixed Assets	176.3	161.8	Net Financial Position (*)	73.9	69.9
Net Working Capital	14.5	11.0	Group Equity	105.2	97.1
			Minorities	11.8	7.0
Net Financial Assets	0.1	1.1	Total Shareholders' Equity	117.0	104.0
Net Capital Employed	190.9	173.9	Total Sources	190.9	173.9

DISCLAIMER

This presentation may contain 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.

Investor Relations

Giulio Cocci - Group Controlling & Investor Relations Director Francesca Cocco – Lerxi Consulting – Investor Relations Tel: +39 (0)732 6104205 E-mail: investor-relations@elica.com