Elica

Investor Presentation • Feb 12, 2021

Preliminary Q4 & FY 2020 Results ANALYSTS PRESENTATION

FRIDAY FEBRUARY 12TH, 2021

AGENDA

EXECUTIVE SUMMARY & Q4 2020 HIGHLIGHTS

EXECUTIVE SUMMARY & Q4 2020 HIGHLIGHTS

▪

• Industry : Strong Q4 in EMEA, driven by European dynamics. (*)
• Revenues growing above Market: +15,8% vs Q4 2019 (+19,0% Organic)
• Products: NikolaTesla driving sales boost in high-end segment (+49% YoY in Q4)
• Margins: Revenues growth and cost containment delivering:
  • 17,2 M€ Adj. EBITDA (+12% on NS) vs. 12,5 M€ 2019 (10% on NS) and
  • 8,9 M€ Adj. EBIT (6,2% on NS), vs. 5,7 M€ 2019 (4,6% on NS)
• NFP: Operating Cash Flow balanced by Capex containment; Leverage back to pre-Covid Values

DESIGN, OUR DNA, our PASSION

INDUSTRY TREND

6

COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data, % Change vs. Y-1		FY'20
Western Europe	4.0%	(6.3%)
Eastern Europe (incl. CIS)	6.6%	(1.0%)
Europe	5.0%	(4.1%)
EMEA	4.2%	(4.2%)
North America	(0.5%)	(7.3%)
Latin America	(1,8%)	(11.2%)
AMERICAS	(1.0%)	(8.8%)
ASIA	1.8%	(9.3%)
WORLD	2.1%	(7.4%)

Q4'20 H1 '20 Key evidence

GENERAL REMARKS

The global economy in 2020 faced a deep recession with the ongoing impact of COVID - 19. The COVID-19 pandemic is still unfolding around the globe affecting businesses across all industries. A growing number of markets back to restrictions on non-essential retail and tighter social distancing rules in December 2020. That fact in Q4 affected all categories of sales and slowed down the Q3 signs of recovery. The pandemic resurges in Europe, continues spreading in America and remains under control in Eastern Asia.

EMEA

Economies with strong trade or financial linkages to the euro area and those heavily dependent on services and tourism have been hardest hit despite a positive 2 nd Half of the year. The Eastern Countries recorded a stronger performance which almost completely recovered what was lost in the 1 st Half.

AMERICAS

US retail sales were recovering in the 2ns Half of the year due to the vaccine news. The pandemic dramatically changed patterns of spending with spending on durable goods that has been strong when compared to other categories. However, the US and Brazil as almost all economies lost considerable speed at the end of 2020 with Covid-19 cases rise.

ASIA

China's economy grew at a faster-than-expected pace in the 4 th quarter of 2020, ending the year with partial recovery. For Japan the recovery stagnated in Q4 due to escalation of infection waves. India has proved far more resilient than expected and it's slowly recovering.

SALES DYNAMICS

SALES KEY DRIVERS

• Q4 acceleration (+19% organic) driven by Volume (+11% vs LY) and Price-Mix (8% vs LY)
• Currencies (USD, RUB, JPY) negatively affecting Revenues but fully balanced @ Margins level
• FY Figures (-5.7%) vs. FY 2019 strongly impacted by the pandemic.

	Q4			FY
Change vs Y-1	€M €M	%	Change vs Y-1	€M €M	%
Vol/Price-Mix	23,5	19.0%	Vol/Price-Mix +3,7%	(21,0) +1,1%	-4.4%
Currency	(3,9)	-3.1%	Currency	≈% (6,3)	-1.3% -5,0%
Reported NS	143,7	15.8%	Reported NS	452,6	-5.7%

REGIONAL SALES DISTRIBUTION

• Q4: All geographies growing above Market, EMEA driving growth in all channels;
• AMERICAS & ASIA: strong operational performance partially offset by negative FX effect.
• FY figures affected by COVID-19 spread.

SALES BY BUSINESS BRAND

• Cooking: Q4 double digit growth in both OWN Brands and OEM, with Own Brand sales mix @ 56%.
• Motor Division: Q4 Improving vs. "record" Q4-2019, fully recovering the GAP vs FY 2019.

NIKOLATESLA FIT

All the advantages of aspiration hobs also in compact kitchens

NIKOLATESLA FIT

Elica's key to enter a new segment in aspiration hobs market

ASPIRATION HOBS REVENUES (€M)

ASPIRATION HOBS % on COOKING REVENUES

• Top performances & Automatic function
• Easy Cleaning and Manteinance
• Super Flexible Installation
• Ceramic Odour filters
• Comfort silence
• 60 cm or 72cm

2020 ECONOMICS & FINANCIALS

14

MARGINS & KEY RESULT DRIVERS

€M	Q4			FY		CHANGES vs. PRIOR YEAR
	2020	2019	VAR	2020	2019	VAR		Q4	FY
NET SALES	143 7 ,	124 1 ,	8% 15 ,	452 6 ,	480 0 ,	7% -5 ,	VOLUME	+ +	- - - - - -
ADJ EBITDA	17 2 ,	12 5 ,	38 0% ,	42 2 ,	45 0 ,	-6 3% ,	/ PRICE MIX	+	+
% NET SALES	0% 12 ,	0% 10 ,	9% 1 ,	3% 9 ,	4% 9 ,	1% -0 ,	OPERATIONS	+ +	-
ADJ EBIT	8 9 ,	5 7 ,	1% 55 ,	15 9 ,	19 6 ,	2% -19 ,	SG&A	+ +	+ +
% NET SALES	6 2% ,	4 6% ,	1 6% ,	3 5% ,	4 1% ,	-0 6% ,	CURRENCY	-	-
NRI	(3 1) ,	(0 6) ,	417 5% ,	(5 2) ,	(2 6) ,	102 2% ,	D&A	+	+
EBIT	5 8 ,	5 1 ,	8% 12 ,	10 7 ,	17 1 ,	5% -37 ,	ADJ EBIT	3 2 ,	(6 4) ,
% NET SALES	4 0% ,	4 1% ,	-0 1% ,	2 4% ,	3 6% ,	-1 2% ,	NRI	-	-
PBT	4 5 ,	3 0 ,	48 0% ,	6 7 ,	11 9 ,	-44 1% ,	FINANCIAL COSTS	+	+
% NET SALES	3 1% ,	2 4% ,	0 7% ,	1 5% ,	2 5% ,	-1 0% ,	COMBINED TAX RATE	-	-
NET PROFIT	3 4 ,	1 5 ,	132 7% ,	4 1 ,	7 4 ,	-43 8% ,	NET PROFIT	1 9 ,	(3 2) ,
% NET SALES	4% 2 ,	2% 1 ,	2% 1 ,	9% 0 ,	5% 1 ,	6% -0 ,
MINORITIES	(2 5) ,	(1 3) ,	2% 83 ,	(5 9) ,	(4 3) ,	4% 37 ,
GROUP NET PROFIT	0 9 ,	0 1 ,	702 6% ,	-1 8 ,	3 1 ,	-158 3% ,
% NET SALES	7% 0 ,	1% 0 ,	6% 0 ,	4% -0 ,	6% 0 ,	0% -1 ,
ADJ GROUP NET PROFIT	3 7 ,	0 6 ,	2% 549 ,	2 6 ,	5 0 ,	5% -48 ,
% NET SALES	2 6% ,	0 5% ,	2 1% ,	0 6% ,	1 0% ,	-0 5% ,

Q4	FY
	-
	-
	-

¹⁵ Q4 REVENUES GROWTH & COST CONTAINMENT DELIVERING A STRONG IMPROVEMENT IN MARGINS 15

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI MINORITIES

€M	2020		2019
	Q4	FY	Q4	FY
PUTIAN INTANGIBLES	1,8	1,8
RESTRUCTURING	1,3	2,6	0,6	1,3
BRAZIL AGREEMENT		0,8
FORMER CEO				1,3
REPLACEMENT
TOT NRI	3,1	5,2	0,6	2,6

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

• New China Business Model
• Corporate SG&A Re-sizing
• Closure of all pending Risks (Brazil)

€M €M	MINORTY MINORITY SHARES SHARES	FY FY 2020 2020	FY FY 2019 2019	VAR VAR
ELICA	74	4	2	1
INDIA	5%	1	6	5
PB	,	,	,	,
ARIAFINA	49	1	1	(0
	0%	6	7	1)
	,	,	,	,
AIRFORCE	40	0	0	0
	0%	2	1	1
	,	,	,	,
TOT MINORITIES		5 9 ,	4 3 ,	1 6 ,

• ELICA PB INDIA: Flexible Business Model and Marketing Costs Rationalization Delivering Record Result, despite Net Sales -10% drop Vs 2019
• ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2019.

NET FINANCIAL POSITION

€M	2020	2019	VAR		COMMENTS
OPENING NFP	(59 0) ,	(68 1) ,	9 1 ,
IFRS16 EFFECT	11 8 ,	11 8 ,
OPENING NFP of NET IFR16	(47 2) ,	(56 3) ,	9 1 ,
CASH OPERATING FLOW	33 0 ,	42 4 ,	(9 4) ,		EBITDA growth.
(*) CAPEX	(15 4) ,	(24 5) ,	9 0 ,
TAXES	(5 0) ,	(4 8) ,	( 2) ,
CF OPERATING	12 6 ,	13 1 ,	( 5) ,
SALES %	2 8% ,	2 7% ,	0 0% ,
DIVIDENDS & FINANCIAL ITEMS	(7 8) ,	(5 6) ,	(2 2) ,
FX EFFECT	(1 5) ,	7 ,	(2 2) ,
RESTRUCTURING COSTS	(2 6) ,	(1 6) ,	(1 0) ,		).
OTHER NRI	(4 9) ,	2 5 ,	(7 4) ,		NFP (USD, MXP, INR, JPN
CLOSING NFP	(51 4) ,	(47 2) ,	(4 2) ,
LEVERAGE	1 3 ,	1 1 ,	0 2 ,

(*) CAPEX VALUES INCLUDING IFRS16 EFFECT

• Operating CF impacted by a) negative Q2 pandemic effect and b) additional inventories @ year-end, fully balanced by a) CAPEX reduction (-37% vs. LY) and b) positive H2
• 7,5 €M NRI related to a) the one-off pay-out for the closing agreement of the litigation with Esperança Real S/A (Brazil) and b) Italy and China SG&A resizing restructuring costs.
• FX Effect negatively impacted by the Eur conversion differences of the Foreign Entities NFP (USD, MXP, INR, JPN ).

CLOSING REMARKS & TAKE-AWAYS

18

CLOSING REMARKS

• Sales & Margins: Maximising demand recovery, through reactive production increase, key product categories profitable growth and all-year-long effective cost management.
• Maintaining strong focus on New Product and Strategic initiatives, despite Capex ≈37% reduction: NikolaTesla Fit launch in October 2020
• Increasing Operating Cash generation in H2, with NFP back to pre-covid values and Leverage largely below new 100 M€ Loan covenants
• All «mid-term» strategic projects running in line with our expectations to deliver incremental growth, margins and cash generation.

Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS

Q4 CONSOLIDATED INCOME STATEMENT

€M	Q4 20	Q4 '19	%
Net Sales	143.7	124.1	15.8%
EBITDA Adj	17.2	12.5	38.0%
%	12.0%	10.0%	200 bps
EBITDA	15.9	11.9	34.1%
%	11.1%	9.6%	150bps
EBIT	5.8	5.1	12.8%
%	4.0%	4.1%	(10) bps
Net Result	3.4	1.5	132.7%
%	2.4%	1.2%	120 bps
EPS* - Euro cents	1.48	0.18	702.6%

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.

FY CONSOLIDATED INCOME STATEMENT

€M	FY '20	FY 19	%
Net Sales	452.6	480.0	(5.7%)
EBITDA Adj	42.2	45.0	(6.3%)
%	9.3%	9.4%	(10 bps)
EBITDA	38.8	42.5	(8.6%)
%	8.6%	8.8%	(30bps)
EBIT	10.7	17.1	(37.5%)
%	2.4%	3.6%	(120 bps)
Net Result	4.1	7.4	(43.8%)
%	0.9%	1.5%	(60 bps)
EPS* - Euro cents	(2.82)	4.84	(158.3%)

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.

NET WORKING CAPITAL

€M	FY '20	FY "19	△
Trade receivables	88.8	55.0	33.3
% on annualized sales	19.6%	11,5%	810 bps
Inventories	76.9	72.9	4 0
% on annualized sales	17.0%	15.2%	180 bps
Trade payables	(133.2)	(110.1)	(23.1)
% on annualized sales	(29.4)%	(22.9)%	(650 bps)
Managerial Working Capital	32.5	17.8	14 6
% on annualized sales	7.2%	3.7%	350 bps
Short term assets & liabilities	(8.5)	(9.7)	1.2
% on annualized sales	(1.9)%	(2.0)%	10 bps
Net Working Capital	24.0	8.1	15.8
% on annualized sales	5.3%	1.7%	360 bps

CONSOLIDATED CASH FLOW

€M	FY '20	FY '19
Operating Cash Flow	20.5	35.9
Capex (*)	(15.4)	(24.5)
Cash Flow from Financing Activities	(7.8)	(3.0)
∆ Net Financial Position	(2.7)	8.5

CONSOLIDATED B/S

	2020	2019		2020	2019
Net Operating Fixed Assets	154.8	175.4	Net Financial Position (*)	61.0	58.9
Net Working Capital	24.0	8.1	Group Equity Minorities	103.7 17.2	111.1 14.2
Net Financial Assets	3.1	0.7	Total Shareholders' Equity	121.0	125.3
Net Capital Employed	182.0	184.2	Total Sources	182.0	184.2

DISCLAIMER

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

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.