Elica — Investor Presentation 2022

Feb 10, 2022

FY 2021 Preliminary Results Analyst Presentation

THURSDAY FEB 10TH, 2022

AGENDA

FY & Q4 2021 HIGHLIGHTS

FY 2021 PRELIMINARY RESULTS

HIGHLIGHTS

NET SALES 541,3 M€

YoY Change +89 M€ +19,6% (organic: +20,6%)

+29 M€

EBIT ADJ	YoY Change
32,3 M€	+16 M€
6,0%	+2,5 pts
NFP	YoY Change

22,7 M€ Leverage:~ 0,6

• Record setting 2021 with very strong revenue growth and margin expansion while executing long term discontinuity actions
• Robust margin largely offsetting 16M€ inflation lead by commodities, utilities and shipping cost increase
• Agile commercial strategy execution to quickly react against supply chain constraints
• Strong Operating Cash Flow to support Growth and Strategic Investments

Q4 2021 PRELIMINARY RESULTS

HIGHLIGHTS

NET SALES 134,4 M€

YoY Change -9 M€ -6,5% (organic: -3,7%)

+29 M€

EBIT ADJ	YoY Change
7,4 M€	-1,5 M€
5,5%	-0,7 pts
NFP	YoY Change

NFP 22,7 M€ Leverage:~ 0,6

• Solid growth of 12% compared to 2019. Year over year change driven by Q4 2021 industry shipment negative trend (Europe ~ -4%) and Q4 2020 record demand after lockdown period (+19%)
• Resilient Business Model: positive Price/Mix and strong cost containment actions to mitigate ~10M€ cost inflation. Further price increases already announced from Q1 2022
• Agreement signed with trade unions to implement from Q1 2022 a sustainable long-term industrial strategy in Europe
• EMC-FIME: New Motors Legal Entity from Jan '22

2021 vs 2019: ROAD TO A NEW COMPANY……. RESULT COMES MAINLY FROM CORE BUSINESS

INDUSTRY TREND

INDUSTRY TREND & MKT SHARE EVOLUTION

FY 2020, Q4 & FY 2021 – COOKER HOODS INDUSTRY SHIPMENTS

(Units YoY Change)	FY '20	Q4 '21	FY '21	Key evidence
Western Europe	(6,3%)	(7,9%)	6,1%	GENERAL REMARKS
Eastern Europe (incl CIS)	(1,0%)	0,9%	8,4%
Europe	(4,1%)	(4,2%)	7,1%	low base effects from the Covid-19 shock last year.
EMEA	(4,2%)	(3,4%)	6,6%	EMEA
North America	(7,3%)	(0,5%)	11,3%
Latin America	(11,2%)	1,4%	5,0%	2020 that had been very positive.
AMERICAS	(8,8%)	0,2%	9,8%	AMERICAS
ASIA	(9,3%)	2,8%	8,1%
Total	(7,4%)	+0,3%	+7,7%	as a result of a recovery in trade.

GENERAL REMARKS

Global economic activity and trade lost some momentum in the second half of 2021. The recovery however continues though supply constraints and rising inflation limit its pace. The resurgence in COVID-19 cases dented consumer sentiment even in the absence of strict containment measures. Overall, the trends are more normalized due to fading low base effects from the Covid-19 shock last year.

EMEA

Sharply rising infection rates in several European countries have led to new restrictions and a negative impact on the workforce and supply chains. In addition, supply bottlenecks have intensified. Shortages of key materials and goods led to fears of accelerating inflation. All these factors led to a negative trend in Q4, which also compares with a Q4 2020 that had been very positive.

AMERICAS

In the US consumer purchases of durable goods started to slow down in the second half of this year. Limiting the speed of recovery are also supplies shortage and decline in consumer confidence, both leading to increased commodity prices and a higher general cost of living. Latin American economies continued their recovery, albeit at a milder rate, as a result of a recovery in trade.

ASIA

China's economy has slowed down in the second half f 2021. The deceleration is being felt across most of Southeast Asia's economies, from the retail to factory sectors. India's recovery hampered by a demand-supply mismatch is among fastest-growing economies in 2021.

SALES KEY DRIVERS

• Q4 Organic Growth@-3,7% compared to a 2020 record quarter (+19%), persisting growth vs 2019 + 12%
• Delivered Full Year record sales (540M€+), ~21% organic growth vs 2020 and +15% vs 2019

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

COOKING SALES BY BRAND

FY 2020	177,6	214,0	391,7
Divestiture	-	-12,7	-12,7
& M&A		-5,9%	-3,2%
Currency	-2,5	-3.5	-5,9
	-1.4%	-1.6%	-1,5%
ORGANIC	+28,6	+51,3	+79,9
Growth	+16,1%	+24,0%	+20,4%
YoY	+26,1	+35,2	+61,3
Change	+14,7%	+16,4%	+15,6%
FY 2021	203,7	249,2	453,0

KEY PRODUCT CATEGORIES PERFORMANCE

• Persisting growth trend in all strategic product families
• NikolaTesla range @ 12,4% of Cooking Sales, with new NikolaTesla Fit @ 10% of total family revenues

MOTOR DIVISION ENERGY TRANSITION ROADMAP

BLOWERS FOR: STANDARD EFFICIENCY BOILERS

Boiler: Thermal Efficiency < 70 % The exhaust gases are ejected by the FIME blower

FIME Blower: Shaded pole motors (A - C - L) Efficiency: 20%

BRUSHLESS BLOWERS FOR: CONDENSING BOILERS

Boiler: Thermal Efficiency > 95 % The FIME blower guarantees the best air-gas mix inside the burner to optimize the combustion. The exhaust gas is recovered to preheat the cold water.

FIME Blower: Brushless Blower (Premix) Motor Efficiency: 70%

BRUSHLESS SOLUTIONS FOR:

• o HYDROGEN BOILERS
• o HYBRID SYSTEMS
• o HEAT PUMPS

Vs. LY NO CO2 Emissions!If both the hydrogen and the electricity are producted via renewable resources

16 M€ vs 10 M€

ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

€M		Q4			FY		CHANGES vs. PRIOR YEAR
	2021	2020	VAR	2021	2020	VAR
SALES NET	134 4 ,	143 7 ,	-6 5% ,	541 3 ,	452 6 ,	19 6% ,
ADJ EBITDA	13 8	17 2	-19 5%	57 1	42 2	35 3%
% NET SALES	, 10,3%	, 12,0%	, bps -170	, 10,5%	, 9,3%	, bps 120
ADJ EBIT	7 4 ,	8 9 ,	-17 2% ,	32 3 ,	15 9 ,	103 5% ,
% NET SALES	5,5%	6,2%	bps -70	6,0%	3,5%	bps 250
NRI	(2 8) ,	(3 1) ,	-8 8% ,	(22 4) ,	(5 2) ,	329 9% ,
EBIT	4 5 ,	8 5 ,	-21 8% ,	9 9 ,	10 7 ,	-6 9% ,
% NET SALES	3,4%	4,0%	-70 bps	1,8%	2,4%	-50 bps
* PBT	3 8 ,	4 5 ,	6% -14 ,	23 2 ,	6 7 ,	0% 248 ,
% NET SALES	2,8%	3,1%	-30 bps	4,3%	1,5%	280 bps
NET PROFIT	2 2 ,	3 4 ,	-34 7% ,	17 5 ,	4 1 ,	321 4% ,
% NET SALES	1,7%	2,4%	bps -70	3,2%	0,9%	bps 230
MINORITIES	0 5 ,	2 5 ,	-77 9% ,	5 4 ,	5 9 ,	-9 8% ,
GROUP NET PROFIT	1 7 ,	0 9 ,	78 9% ,	12 1 ,	-1 8 ,	778 4% ,
% NET SALES	1,3%	0,7%	bps 60	2,2%	-0,4%	bps 260
ADJ GROUP NET PROFIT	3 8 ,	3 7 ,	3 3% ,	9 15 ,	2 6 ,	-516 4% ,
% NET SALES	2,9%	2,6%	bps 30	2,9%	0,6%	bps 240

	Q4	FY
VOLUME	+	+ +
/ PRICE MIX	+ +	+ +
RAW MATERIAL INFLATION	--	-
SG&A	+	+
CURRENCY	+	-
D&A	-	+
ADJ EBIT	-1 5 ,	16 4 ,
NRI	-	--
FINANCIAL COSTS	+	+
COMBINED TAX RATE	+	+
NET PROFIT	-1 2 ,	13 3 ,

(*) Includes Revenues of 15,5 M€ NRI for Elica PB India Controlling Participation Sale

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI MINORITIES

€M	2021		2020
	Q4 FY		Q4	FY
CHINA BUSINESS MODEL	0 0 ,	6 1 ,	8 1 ,	8 1 ,
RESTRUCTURING	1 1 ,	3 2 ,	1 3 ,	2 6 ,
M&A (India-EMC)	1 0 ,	1 8 ,	0 0 ,	0 0 ,
INDUSTRIAL PLAN	0 8 ,	15 8 ,	0 0 ,	0 8 ,
TOT NRI	2 8 ,	22 4 ,	3 1 ,	5 2 ,

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

• China assets write-off with no financial effect
• M&A includes also the motor carve-out project for the new Legal entity
• Industrial Plan: Provision for the New Manufacturing Footprint implementation

€M	MINORTY	2021		2020
	SHARES	Q4	FY	Q4	FY
ELICA	5%	0	3	9	4
PB	74	0	4	1	1
INDIA	,	,	,	,	,
ARIAFINA	49	0	1	0	1
	0%	5	7	4	6
	,	,	,	,	,
AIRFORCE	40	0	0	0	0
	0%	1	3	1	2
	,	,	,	,	,
TOT MINORITIES		0 5 ,	5 4 ,	2 4 ,	5 9 ,

• MINORITIES impact reduced due to INDIA deconsolidation
• ARIAFINA (Japan) and AIRFORCE (Italy) performance in line with 2020.

NET FINANCIAL POSITION – 31/12/2021

€M	FY 2021	FY 2020	VAR
OPENING NFP	61 0 ,	58 9 ,	2 1 ,
IFRS16 EFFECT	9 7 ,	11 8 ,
OPENING NFP of NET IFR16	51 4 ,	47 2 ,	4 2 ,
OPERATING CASH FLOW	61 8 ,	31 9 ,	29 9 ,
(*) CAPEX	(23 3) ,	(15 4) ,	(7 8) ,
TAXES	(7 5) ,	(5 0) ,	(2 5) ,
OPERATING CF	31 1 ,	11 5 ,	19 5 ,
SALES %	7% 5 ,	2 5% ,	3 2% ,
DIVIDENDS & FINANCIAL ITEMS	( 7) ,	(7 8) ,	7 1 ,
EFFECT FX	3 ,	(1 5) ,	1 8 ,
Other NRI	(1 8) ,	(6 4) ,	4 6 ,
M&A	2 ,		2 ,
CLOSING NFP	22 7 ,	51 4 ,	28 7 ,
LEVERAGE	-0 6 ,	-1 3 ,	0 7 ,

COMMENTS

• 2X OPERATING CF vs LY mainly driven by EBITDA Growth and positive trend of Managerial Working Capital
• Positive impact in cash out vs LY from Dividend (Ariafina) and from lower financial items (Putian)
• FX Effect positive impacted by the Eur conversion differences of the Foreign Entities NFP (USD, MXP, INR, JPN )

▪ Neutral M&A Effect:

	0,2 M€	Effect on Group NFP
▪	(10,3) M€	De-consolidation of Elica OB India from Group NFP
▪	1,5 M€	Reimbursement of Elica Loan to India JV
▪	22,0 M€	Sale of 19% Share Capital of Elica PB India Cash-in
▪	(13,0) M€	Motor Division M&A Deal Cash-out

DOUBLE OPERATING CASH FLOW VS LY, LEVERAGE@ 0.6 on EBITDA REPORTED ( on EBITDA ADJUSTED@0.4)

CLOSING REMARKS & 2022 GUIDANCE

CLOSING REMARKS

• Delivered a Record Year for our Company in terms of sales growth, profitability, cash conversion and market shares while executing long term actions.
• Challenging 2022:
• Organic growth (~5-6%) in a slightly positive market demand scenario.
• Maintaining our commitment in improving value creation, despite Raw Material Scenario remains critical both in terms of Availability and Inflation.
• Further Net Financial Position Improvement to sustain investments in production capacity, innovation and M&A initiatives.

Q1 2020 HIGHLIGHTS ANNEX: FINANCIAL HIGHLIGHTS

FY CONSOLIDATED INCOME STATEMENT

€M	4Q 21	4Q 20	%
Net Sales	134.4	143.7	$-6.5%$
EBITDA Adj	13.8	17.2	$-19.5%$
$\%$	10.3%	12.0%	$-170$ bps
EBITDA	13.2	15.9	$-17.0%$
$\%$	9.8%	11.1%	$-120$ bps
EBIT	4.5	5.8	$-21.8%$
$\%$	3.4%	4.0%	$-70 bps$
Net Result	2.2	3.4	$-34.7%$
$\%$	1.7%	2.4%	$-70 bps$
$EPS^*$ – Euro cents	2.66	1.48	78.9%

²⁴ (*) 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 21	FY 20	%
Net Sales	541.3	452.6	19.6%
EBITDA Adj	57.1	42.2	35.3%
%	10.5%	9.3%	120 bps
EBITDA	38.5	38.8	$-0.7%$
℅	7.1%	8.6%	$-150$ bps
EBIT	9.9	10.7	6.9%
$\%$	1.8%	2.4%	$-50$ bps
Net Result	17.5	4.1	$-321.4%$
%	3.2%	0.9%	230 bps
$EPS^*$ – Euro cents	19.14	(2.82)	778.7%

²⁵ (*) 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	2021	2020	Δ
Trade receivables	82.2	88.8	(6.6)
% on annualized sales	15.2%	19.6%	$(440)$ bps
Inventories	84.9	76.9	8.0
% on annualized sales	15.7%	17.0%	$(130)$ bps
Trade payables	(141.2)	(133.2)	(8.0)
% on annualized sales	$(26.1)\%$	$(29.4)\%$	330 bps
Managerial Working Capital	25.8	32.5	(6.6)
% on annualized sales	4.8%	7.2%	$(240)$ bps
Short term assets & liabilities	(34.5)	(8.5)	(26.0)
% on annualized sales	$(6.4)\%$	$(1.9)\%$	$(450)$ bps
Net Working Capital	(8.7)	24.0	(32.6)
% on annualized sales	$(1.6\%)$	5.3%	$(690)$ bps

CONSOLIDATED CASH FLOW

€M	2021	2020
Operating Cash Flow	52.5	20.5
Capex (*)	(23.7)	(15.4)
Cash Flow from Financial Activities	(0.5)	(7.8)
∆ Net Financial Position	28.3	(2.7)

CONSOLIDATED B/S

	2021	2020		2021	2020
Net Operating Fixed Assets	167.5	155.0	Net Financial Position (*)	35.2	61.0
Net Working Capital	-8.7	24.0	Group Equity Minorities	117.2 6.9	103.8 17.2
Net Financial Assets	0.5	3.1	Total Shareholders' Equity	124.1	121.0
Net Capital Employed	159.3	182.1	Total Sources	159.3	182.1

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.