Elica — Investor Presentation 2021

Jul 30, 2021

H1 Results 2021 ANALYSTS PRESENTATION

FRIDAY JULY 30TH, 2021

AGENDA

EXECUTIVE SUMMARY Q2 2021 HIGHLIGHTS

EXECUTIVE SUMMARY Q2 2021 HIGHLIGHTS

▪

• Industry : Confirmed the positive Market Trend in all Regions (*)
• Revenues growing above Market: +80,3% vs Q2 2020 (+84,1% Organic), +12% vs 2019 (Net of FX)
• Products: NikolaTesla, with the new fit range, driving sales boost in high-end segment +110% YoY in Q2, +85% vs 2019
• Margins: Revenues growth and Raw Materials Cost containment delivering:
  • 14,2 M€ Adj. EBITDA (10,7% on NS)
  • 8,2 M€ Adj. EBIT (6,2% on NS)
• NFP: Improving despite 4M€ cash out for the FIME Motors M&A deal

INDUSTRY TREND

Q1 Q2 & H1 2021 – COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data _ Change% vs . Y-1

	Q1'21	H1 '20 Q2'21	H1 '20 H1'21
Western Europe	3.9%	42.2%	21.1%
Eastern Europe (incl. CIS)	8.7%	20.5%	14.6%
Europe	6.0%	31.8%	18.2%
EMEA	5.3%	28.6%	16.3%
North America	2.0%	50,0%	20.6%
Latin America	1.6%	22.1%	7.8%
AMERICAS	1.8%	41%	15.8%
ASIA	30.5%	5.2%	16.1%
WORLD	14.7%	17.5%	16.1%

Key evidence

GENERAL REMARKS

The growth remains strong thanks to successful vaccine rollouts, major fiscal support, accumulated savings and pent-up demand that is being released. Impressive growth figures are inflated by the coronavirus-related crash in the year-ago period.

EMEA

The Eurozone's economic recovery progressed. In Q2 return to pre-pandemic 2019 levels was registered. The contours of the European economic recovery are changing, from one led by a rebound in industrial activity to a more services-based pickup. Due to high rates of vaccinations, the Easter and Western Europe countries' economic and consumer activity continues to be on a steady recovery path.

AMERICAS

The US economic outlook has continued to improve, due to the large fiscal stimulus and rapid progress with coronavirus vaccinations. The health situation has remained challenging in several Latin American countries (notably Brazil and Argentina). This in turn implies that these "stop-and-go" processes are persisting over this period and partially constrained the recovery.

ASIA

There are significant variations in the strength of recoveries across Asia. The composition of growth has been uneven. Manufacturing, particularly electronic exports, continued to power regional growth, while the growth of consumer demand slowed down. The emergence of a major new pandemic wave in India during spring 2021 caused an economic contraction in Q2.

SALES DYNAMICS

SALES KEY DRIVERS

• Q2 & H1 growth vs LY due to 2020 WW Lockdown restrictions & solid organic perfomance, confirmed by +16% result versus H1 2019 (Net of FX).
• Currencies (USD,INR,JPY,RUB) negatively affecting Revenues (-3,8%) but mostly balanced @ Margins level

Q2				H1
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price-Mix	61,8	84,1%	Vol/Price-Mix	92,0	50,0%
Currency	(2,8)	(3,8)%	Currency	(6,8)	(3,7)%
Reported NS	132,4	80,3%	Reported NS	269,5	46,3%

REGIONAL SALES DISTRIBUTION & DYNAMICS

• All Clusters with a double digit growth vs the Quarter most impacted by the Pandemic effect
• America Q2 growth faster than others region due to 2 months of Lockdown restriction in 2020.

SALES BY BUSINESS AND BRAND

• COOKING: Volume OEM acceleration due to 2 month of Mexican production facility shut down in 2020, H1@+ 12% vs 2019 (NET of FX).
• MOTOR: Sales Growth driven by Heating segment (Q2@+70% and H1@+44%). VS H1 2019 + 33% ( NET of FX)

OPEN SUITE

The industrial style interpreted in an innovative modular solution, that designs spaces through shapes, materials and light

Modular & Customizable

• ❑ Modular & Customizable
• ❑ Full Led Lighting Experience
• ❑ Connectivity
• ❑ Start of Production July 2021

IKONA MAXXI PURE

Two soulsin one elegant body: a hood and a purifier taking care of indoor air all day long

2 in 1 product with Hood and Purification systems cleverly separated

Pure Silence

Combo Pure Filter for odours, allergens, dust, chemicals removal

KEY PRODUCT CATEGORIES PERFORMANCE

• Q2 supporting growth trend in all strategic product families ABOVE the sell-in trend even vs 2019
• NikolaTesla range reaching 12% of Cooking Sales, thanks to range expansion boost: Nikola Tesla Fit (~1% of Cooking Sales)

€M

2021 ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

€M	Q2			H1			CHANGES vs. PRIOR YEAR
	2021	2020	VAR	2021	2020	VAR

Q2	H1

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI MINORITIES

€M	2021		2020
	Q2	H1	Q2	H1

▪ FOCUSED ONE-OFFS TO DELIVER INCREASING MARGINS & ELIMINATE LIABILITIES:

• China assets write-off with no financial effect
• Corporate SG&A Re-sizing
• Former CEO No Competition Agreement

€M	MINORTY SHARES	2021		2020
		Q2	H1	Q2	H1

• ELICA PB INDIA: Delivered Strong H1 Result despite a slow down in Q2 due to new wave of COVID restriction.
• ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2020.

NET FINANCIAL POSITION – H1 2021

€M	H1 2021	H1 2020	VAR

COMMENTS

• OPERATING CF mainly driven by EBITDA Growth and positive trend of Managerial Working Capital.
• Positive impact in cash out vs LY from Dividend (Ariafina) and from less financial items (Putian);
• FX Effect positive impacted by the Eur conversion differences of the Foreign Entities NFP (USD, MXP, INR, JPN ).
• 4M€ Cash-out for the MOTORS M&A Deal
• NRI mainly related to Cash-in for No Strategic China Assets Sales offset partially by Cash-out Restructuring Costs

NFP IMPROVING 4.8M€ vs Q1 2021 AND BETTER THAN Q2 2019 (~15M€), DESPITE 4M€ CASH OUT for MOTOR M&A Deal

Q1 2020 HIGHLIGHTS FY 2021 GUIDELINES

FY 2021: ESTIMATES & CHALLENGES

• Expected a carry-on favourable market trend: solid Volumes and Price-Mix projections.

• Raw Material Scenario remains critical both in terms of Availability and Inflation.

• FY Net Sales 2021 expected to growth ~15% vs 2020.

• FY Adj Ebit margin expected between 5.5% and 6.0% (YoY change 310-360 bps).
• Operating cash flow driven by Margins growth, CAPEX and NWC containment: NFP expected to improve vs current.

Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS

Q2 CONSOLIDATED INCOME STATEMENT

€M	Q2 '21	Q2 '20	%
Net Sales	132.4	73.4	80.3%
EBITDA Adj	14.2	1.3	989.8%
%	10.7%	1.8%	890 bps
EBITDA	13.7	0.4	3753.2%
%	10.3%	0.5%	980 bps
EBIT	7.7	(5.2)	248.6%
%	5.8%	(7.0)%	1280 bps
Net Result	4.4	(5.0)	187.9%
%	3.4%	(6.8)%	1010 bps
EPS* - Euro cents	5.26	(8.96)	158.7%

²² (*) 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.

H1 CONSOLIDATED INCOME STATEMENT

€M	H1 '21	H1 20	%
Net Sales	269.5	184.2	46.3%
EBITDA Adj	28.5	12.2	133.0%
%	10.6%	6.6%	390 bps
EBITDA	27.2	11.3	140.4%
%	10.1%	6.1%	390 bps
EBIT	13.7	(0.9)	1667.5%
%	5.1%	(0.5)%	560 bps
Net Result	8.5	(3.0)	387.7%
%	3.2%	(1.6)%	480 bps
EPS* - Euro cents	9.07	(7.55)	220.1%

²³ (*) 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	H1 '21	H1 '20	△
Trade receivables	92.3	55.5	36.8
% on annualized sales	17.1%	15.1%	200 bps
nventories	81.3	68.7	12.6
% on annualized sales	15.1%	18.7%	(360) bps
Trade payables	(124.5)	(81.8)	(42.7)
% on annualized sales	(23.1)%	(22.2)%	90 bps
Managerial Working Capital	49.1	42 4	6.6
% on annualized sales	9.1%	11.5%	(240) bps
Short term assets & liabilities	(10.8)	(10.0)	(0.8)
% on annualized sales	(2.0)%	(2.7)%	(700) bps
Net Working Capital	38.2	32.5	5.8
% on annualized sales	7.1%	8.8%	(170) bps

CONSOLIDATED CASH FLOW

EM	H1 '21	H1 '20
Operating Cash Flow	15.1	(16.0)
Capex (*)	(6.2)	(5.9)
Cash Flow from Financial Activities	(4.2)	(4.6)
A Net Financial Position	4.8	(26.4)

CONSOLIDATED B/S

	2021	2020		2021	2020
Net Operating Fixed Assets	147.3	164.3	Net Financial Position (*)	56.4	85.5
Net Working Capital	38.2	32.5	Group Equity Minorities	111.0 19.5	98.8 14.0
Net Financial Assets	1.2	1.5	Total Shareholders' Equity	130.4	112.8
Net Capital Employed	186.8	198.3	Total Sources	186.8	198.3

DISCLAIMER

Investor Relations

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

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.