Elica — Investor Presentation 2020

Oct 30, 2020

Q3 - 9M 2020 RESULTS PRESENTATION

FRIDAY OCTOBER 30th, 2020

AGENDA

EXECUTIVE SUMMARY & Q3 2020 HIGHLIGHTS

EXECUTIVE SUMMARY & Q3 2020 HIGHLIGHTS

• Industry : Strong Q3 bounce back in EMEA, mainly driven by European dynamics. (*)
• Net Sales Growing more than the industry thanks to market demand rebound and lock-down back-order recovery: +6,4% vs Q3 2019. EU & Mex plants running @ Max Capacity
• Products: NikolaTesla driving sales acceleration in high-end categories
• Margins: Revenues growth and cost containment delivering:
  • 12,8 M€ Adj EBITDA (+10,3% on NS) vs. 11,3 M€ 2019 (9,7% on NS) and
  • 6,9 M€ Adj. EBIT (5,5% on NS), vs. 5,1 M€ 2019 (4,3% on NS)
• NFP & Leverage improving vs H1, despite ≈ 6,3 M€ Not Recurring Items

5

9M 2020 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ % Change vs. Y-1

Q3'20	9M'20 H1 '20	KEY FACTS

9M NET SALES DYNAMICS

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SALES KEY DRIVERS

• 9M Figures (-13.2%) vs. 9M 2019 strongly impacted by the pandemic.
• Q3 acceleration (+8.6% organic) driven by Volume (+4.5% vs LY) and Price-Mix (4.1% vs LY)
• Currencies (USD, RUB, JPY) negatively affecting Revenues but fully balanced @ Margins level

	Q3		9M
Change vs Y-1	€M €M	%	Change vs Y-1 % €M €M
Vol/Price-Mix	10,0	8.6%	Vol/Price-Mix (44,6) -12.5% +3,7% +1,1%
Currency	(2,6)	-2.2%	≈% Currency (2,4) -0.7% -5,0%
Reported NS	124,7	6.4%	Reported NS -13.2% 308,9

REGIONAL SALES DISTRIBUTION

• Q3: EMEA & AMERICAS driven by positive Market (EU) and post lock-down back-order recovery (2 months lock-down in Mexican plant), while Asia pandemic emergency is still slowing down trade traffic.
• 9M figures affected by COVID-19 spread.

SALES BY BUSINESS BRAND

• Cooking: Q3 Recovery in both OWN Brands and OEM, consolidating a stable 54% Own Brand sales mix. Factories @ full capacity in EU and Mex geographies.
• Motor Division: Q3 Improving vs. Q32019 "record" numbers. Minimal effect over 9M sales.

KEY PRODUCT CATEGORIES PERFORMANCE

Q3 supporting growth trend in almost all strategic product families:

• NikolaTesla range reaching 9% of Global Group Revenues (Q3 data).
• Aspiration Hobs & High-End Built-In Hoods acceleration, improving mix-up and margins.
• Slower recovery for Downdraft family, driven by OEM dynamics.

9M ECONOMICS & FINANCIALS

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EBITDA

• Volume/Price-Mix Effect in Q3 and persisting focus on SG&A Labour and Opex containment, driving Ebitda margin improvement to 60 bps vs. 2019 (+1,4 €M). 9M figures affected by Q2 Sales and Production Lock-down dynamics.
• Q3 Adjustment (1,2 €M) mainly related to restructuring costs. YTD includes cost of closing agreement of the litigation between Elica S.p.A and Esperança Real S/A (Brasil).

2019 adjustment (2,0 €M) related to New CEO appointment and Italian Plant restructuring costs

NET PROFIT

• Operating Performance driving Q3 Net Profit improvement; lower D&A and Financial Costs.
• Minorities stable contribution, thanks to Elica very flexible business model in India and Japan, despite persisting stress on Revenues.
• 9M figures affected by Q2 Sales and Production Lock-down dynamics.

NET FINANCIAL POSITION

• Operating CF mostly impacted by negative Q2 EBITDA effect, partially balanced by CAPEX reduction (-40% vs. LY).
• 6,3 €M NRI mainly related to the closing agreement of the litigation with Esperança Real S/A (Brasil).
• Negative Effect from IFR16 Other Receivables/Payables balances and FX conversion differences of the Foreign Entities NFP (MXP, USD, RUB and JPN ).

→ Leverage largely below covenants, space to cope with recovery dynamics while improving OCF.

CLOSING REMARKS & 2020 GUIDANCE

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Q3 2020: CLOSING REMARKS

• Sales & Margins: Maximising demand recovery dynamics, through reactive production increase and effective cost management
• Key Products regaining positive YoY trend after Covid-19 effect in Q2
• Maintaining strong focus on New Product and Strategic initiatives, despite Capex 40% reduction
• NFP back to pre-covid values; Leverage largely below covenants

FY 2020: ESTIMATES & CHALLENGES

• October dynamics confirming positive trend, but pandemic spread and increasing containment measures risk to slow-back-down the demand
• Recovery curve «Shape» difficult to forecast @ this stage

▪ Net Sales expected to decline ≈12-14% vs. 2019 (from ≈15%-17% previous est.)

___________________________________________________________________________________

• Persisting strong focus on cost containment & financial sustainability
• Margins: expected between "Mid" and "Top-side" of current consensus
• On-going Execution of key projects to achieve mid-term targets

Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS

Q3 CONSOLIDATED INCOME STATEMENT

€M	03 '20	03/19	%
Net Sales	124.7	117.2	6.4%
EBITDA Adj	12.8	11.3	12.8%
%	10.3%	9.7%	60bps
EBITDA	11.6	11.3	2.6%
%	9.3%	9.7%	-40bps
EBIT	5.8	5.1	13.5%
%	4.6%	4.3%	30bps
Net Result	3.7	2.8	30.6%
96	3.0%	2.4%	60bps
EPS* - Euro cents	3.24	2.43	33.7%

²⁰ (*) 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.

9M CONSOLIDATED INCOME STATEMENT

€M	9M '20	9M '19	%
Net Sales	308.9	355.9	-13.2%
EBITDA Adj	25.0	32.6	-23.2%
%	8.1%	9.2%	-110 bps
EBITDA	22.9	30.6	-25.1%
%	7.4%	8.6%	-120bps
EBIT	4.9	11.9	-59,1%
%	1.6%	3.3%	-170 bps
Net Result	0.7	5.9	-87,6%
%	0.2%	1.7%	-150 bps
EPS* - Euro cents	(4.3)	4.65	-192,5%

²¹ (*) 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.

NET WORKING CAPITAL

EM	9M '20	9M '19	△
Trade receivables	74.7	62.9	11.8
% on annualized sales	18.1%	13.3%	480 bps
Inventories	67.8	78.7	(10.8)
% on annualized sales	16.5%	16.6%	(10 bps)
Trade payables	(103.0)	(109.6)	6.6
% on annualized sales	(25.0)%	(23.1)%	(190 bps)
Managerial Working Capital	39.5	32.0	7.6
% on annualized sales	9.6%	6.7%	290 bps
Short term assets & liabilities	(16.1)	(12.7)	(3.4)
% on annualized sales	(3.9)%	(2,7)%	(120 bps)
Net Working Capital	23.4	19.3	4.1
% on annualized sales	5.7%	4.1%	160 bps

CONSOLIDATED CASH FLOW

EM	9M '20	9M '19
Operating Cash Flow	(2.9)	13.3
Capex (*)	(9.5)	(16.5)
Cash Flow from Financing Activities	(6.3)	(1.5)
A Net Financial Position	(18.7)	(4.7)

CONSOLIDATED B/S

	2020	2019		2020	2019
Net Operating Fixed Assets	166.9	174.7	Net Financial Position (*)	76.7	71.3
Net Working Capital	23.4	19.3	Group Equity	99 4	109.1
			Minorities	15.3	13.3
Net Financial Assets	1.0	(0.3)	Total Shareholders' Equity	114.7	122.4
Net Capital Employed	191.4	193.7	Total Sources	191.4	193.7

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 Chief Financial Officer Francesca Cocco – Lerxi Consulting – Investor Relations Tel: +39 (0)732 6104205 E-mail: investor-relations@elica.com