Elica — Investor Presentation 2023

Oct 26, 2023

Q3 2023 Results ANALYSTS PRESENTATION

THURSDAY OCTOBER 26TH, 2023

AGENDA

Q3 2023 RESULTS

HIGHLIGHTS

NET SALES 105,6 M€

YoY Change -23,2 M€ -18,0% (organic: -15,8%)

EBIT ADJ
5,2 M€
5,0%

YoY Change -1,8 M€ -0,5 pts

• Persisting weak market demand in Cooking business. Significant Heating industry slowdown since June, negatively impacting Motor division.
• Margin fully protected despite significant volume effect thanks to industrial footprint flexibility and strong cost control → Ebitda margin + 80 bps vs Q3 2022.
• Leverage under control despite revenues decline. Further inventories reduction plan ongoing.

9M 2023 RESULTS

360,0 M€

EBIT ADJ 19,4 M€ 5,4%

NFP

4

ELICA TURNAROUND PROCESS INDUSTRY TREND

EMEA - COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data Change % vs LY

-14,0%

NORTH AMERICA - COOKER HOODS INDUSTRY UNIT SHIPMENTS

Volume Data Change % vs LY

* SOURCE AHAM: DATA REFERS TO ALL COOKING PRODUCT RANGES but MICROWAVES, COVERING ≈ 40% OF THE MARKET

** SOURCE AHAM

HEATING SECTOR MARKET TREND - BOILERS

Visibility in the Heating segment remains limited due to the change in incentives regulations and legislation announcement effect

SALES DYNAMIC

9

SALES KEY DRIVERS

• Cooking trend still affected by volumes decline, as a result of the persistent weaker market demand compared to last year.
• Motors: Ventilation negative trend remain unchanged, on the other hand, Heating in Q3 accounted a significant slow down due to the change in incentives regulations and legislation announcement effect, combined with customers destocking measures.

SALES DRIVERS & REGIONAL OVERVIEW

SALES BY BUSINESS

COOKING SALES BY BRAND

Net Sales

Net Sales Currency ORGANIC Growth YoY Change 9M 2022 9M 2023 -3,1 -0,9% -44,3 -13,7% -47,4 -14,6% 276,4 323,8 -0,1 -0,1% -3,0 -1.6% -34,4 -24,2% -9,9 -5,5% -34,5 -24,3% -12,9 -7,1% 142,1 181,6 107,6 168,7

ECONOMICS & FINANCIALS

MARGINS & KEY RESULT DRIVERS

		Q3			9M
€M	2023	2022	% VAR	2023	2022	% VAR
NET SALES	105,5	128,8	(18,0)%	360,2	419,0	(14,0)%
ADJ EBITDA	11,4	12,8	(11,3)%	37,5	43,3	(13,4)%
% NET SALES	10,8%	10,0%	80 bps	10,4%	10,3%	10 bps
ADJ EBIT	5,2	7,1	(26,1)%	19,4	25,6	(24,3)%
% NET SALES	5,0%	5,5%	-50 bps	5,4%	6,1%	-70 bps
NRI	(0,3)	(1,5)	80,2%	(1,3)	(3,5)	62,7%
EBIT	4,9	5,6	(12,0)%	18,1	22,1	(18,2)%
% NET SALES	4,7%	4,4%	30 bps	5,0%	5,3%	-30 bps
PBT	2,9	3,0	(2,1)%	13,8	22,0	(37,1)%
% NET SALES	2,8%	2,3%	50 bps	3,8%	5,2%	-140 bps
NET PROFIT	2,2	1,5	39,8%	10,7	14,5	(26,2)%
% NET SALES	2,1%	1,2%	80 bps	3,0%	3,5%	-50 bps
MINORITIES	0,4	0,6	(35,9)%	1,1	1,2	(6,4)%
GROUP NET PROFIT	1,8	1,0	82,1%	9,6	13,3	(28,0)%
% NET SALES	1,7%	0,8%	90 bps	2,7%	3,2%	-50 bps

CHANGES vs. PRIOR YEAR

	Q3	9M
VOLUME	---	---
PRICE / MIX	-	-
RAW MATERIAL INFLATION	+	+
COST TAKEOUT	+ +	+ +
CURRENCY	-	-
D&A	-	-
ADJ EBIT	-1,8	-6,2
NRI	++	++
FINANCIAL COSTS	+	-
COMBINED TAX RATE	+	+
NET PROFIT	0,6	-3,8

Q3 MARGIN PROTECTED DESPITE VOLUMES DROP , GROUP NET PROFIT 2x vs LY

9M 2023 – NET FINANCIAL POSITION

€M	9M 2023	9M 2022	VAR
OPENING NFP	43 9 ,	35 1 ,	(8 8) ,
IFRS16 EFFECT	14 0 ,	12 4 ,	1 6 ,
OPENING NFP NET of IFR16	29 9 ,	22 7 ,	(7 2) ,
OPERATING CASH FLOW	22 8 ,	30 6 ,	(7 8) ,
(*) CAPEX	(11 5) ,	(12 2) ,	0 7 ,
TAXES	(2 4) ,	(6 1) ,	3 7 ,

FCF OPERATING	9 0 ,	12 3 ,	(3 3) ,
% SALES	1 6% ,	2 3% ,
Buy Back	(0 9) ,	(1 3) ,	0 4 ,
Industrial Footprint Cash-out	(2 7) ,	(8 7) ,	6 0 ,
Cash M&A Out	(7 0) ,	(13 1) ,	6 1 ,
Dividend & Financial Items	(9 6) ,	(2 1) ,	(7 5) ,
Other NRI	(5 8) ,	(3 3) ,	(2 5) ,
CLOSING NFP of IFR16	47 0 ,	38 9 ,	(8 1) ,

LEVERAGE(NFP/EBITDA)	0 9	0 7
	,	,

COMMENTS

▪ Leverage in line with LY despite:

▪	EU Manufacturing footprint relocation	~2,7M€
▪	M&A (Last tranche EMC):	~7,0M€
▪	Shares Buyback:	~0,9M€
▪	Elica Dividend	~5,0M€

▪ NWC negatively impacting on Operating Cash Flow for ~8M€: further inventories reduction plan ongoing.

WELL POSITIONED TO ACHIEVE OUR MID TERM TARGETS

DESIGN for LOVE LHOV Design Fabrizio Crisà

MOTOR DIVISION: HEAT PUMPS GROWTH OPPORTUNITY

▪ HISTORICAL DATA AND FUTURE PROJECTIONS CONFIRMING THE HUGE POTENTIAL

▪ WE'RE READY TO PRODUCE FROM DECEMBER '23 OUR FANS FOR HEAT PUMPS

COOKING: FROM CORE BUSINESS TO A COMPLETE RANGE OFFER

19

Performance Innovation

Aspiration Hobs HOVs Built-in complements Growth in market share thanks to a Wider product range based on design and unique features, able to address the different user needs and flexible for any kitchen configuration Enlarging the offer in built-in leveraging on leadership position in growing markets A breakthrough innovation to create a new cooking segment Cooker hoods Keep the leadership and the unique selling proposition leveraging on design and technology. CORE BUSINESS NEW BUSINESS OPPORTUNITIES COOKING 360° Design

TOWARDS TO A COOKING COMPANY

INDUCTION GROWTH OPPORTUNITIES

COOKTOPS UNITS TREND

HOBS UNITS TREND

20

FURTHER NOVELTIES IN THE ASPIRATION HOBS RANGE AND A NEW 2024 LINE-UP IN THE INDUCTION HOBS

"BOOTS ON GROUND"

NEW DISTRIBUTOR IN NORTH AMERICA in PARTNERSHIP WITH ILVE

Introducing SEA, Southeast Appliance - Your Trusted Appliances Distributor!

We are thrilled to announce the launch of SEA, Southeast Appliance. We are on a mission to bring quality, innovation, and reliability to every household and business.

With a passion for delivering the latest in appliances and an unwavering commitment to exceptional customer service, SEA, Southeast Appliance is set to redefine the way of home experience and commercial appliances.

Our commitment to excellence, innovation, and customer satisfaction sets us apart in the industry.

SAME DISTRIBUTION MODEL BEING IMPLEMENTED FOR CANADA

21

CLOSING REMARKS

ELICA KEEPS BOOSTING ON ITS BRAND AWARENESS AND UNIQUENESS

READY FOR THE SECOND WAVE OF THE NIKOLATESLA UNPLUGGED CAMPAIGN

23

THE CROSS-CHANNEL CAMPAIGN WILL BE ON AIR FOR TWO MONTHS

CLOSING REMARKS

2023 YTD Takeaways :

• Persisting weak market demand in Cooking business and significant Heating industry slowdown in Motor division, negatively impacting revenues.
• Margins fully protected thanks to industrial footprint flexibility and strong cost control. Solid fundamentals, low contribution from decreasing raw materials costs to offset negative volumes impact.
• Leverage in line with LY, healthy mid-term debt structure @2020 interest rates.

Full Year Guidance:

• Revenues: ~ -15% vs 2022
  • Cooking market demand not expected to improve YoY in Q4
    • → Priorities: Defend Market Shares and continue the phase-in of Elica new product range and distribution enlargement
  • Motors: heating market not expected to improve in Q4
    • → Priorities: Heat-Pumps (Q4), Hydrogen
• Operating Margin: ~ -50 bps vs LY
• Leverage in line with Q3

ANNEX: FINANCIAL HIGHLIGHTS

27

Q3 CONSOLIDATED INCOME STATEMENT

€M	30 23	3Q 22	%
Net Sales	105.6	128.8	-18.0%
EBITDA Adj	11.4	12.8	-11.3%
%	10.8%	10.0%	81 bps
EBITDA	11.1	11.4	-2.5%
%	10.5%	8.8%	168 bps
EBIT	4.9	5.6	-12.0%
%	4.7%	4.4%	32 bps
Net Result	2.2	1.5	39.8%
%	2.1%	1.2%	85 bps
EPS* - Euro cents	2.92	1.62	80.5%

²⁸ (*) 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 23	9M 22	%
Net Sales	360.2	419.0	-14.0%
EBITDA Adj	37.5	43.3	-13.4%
%	10.4%	10.3%	8 bps
EBITDA	36.2	39.8	-9.1%
%	10.0%	9.5%	54 bps
EBIT	18.1	22.1	-18.2%
%	5.0%	5.3%	-26 bps
Net Result	10.7	14.5	-26.2%
%	3.0%	3.5%	-49 bps
EPS* - Euro cents	15.35	21.15	-27.4%

²⁹ (*) 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 23	FY 22	△
Trade receivables	30.8	48.5	(17.7)
% on annualized sales	6.4%	8.8%	(240) bps
Inventories	109.1	101.5	7.6
% on annualized sales	22.7%	18.5%	420 bps
Trade payables	(121.2)	(139.6)	18.3
% on annualized sales	(25.2)%	(25.4)%	20 bps
Managerial Working Capital	18.6	10.4	8.2
% on annualized sales	3.9%	1.9%	200 bps
Short term assets & liabilities	1.6	(12.6)	14.2
% on annualized sales	0.3%	(2.3)%	260 bps
Net Working Capital	20.2	(2.2)	22.4
% on annualized sales	4.2%	(0.4)%	460 bps

CONSOLIDATED CASH FLOW

EM	9M 23	9M 22
Operating Cash Flow	15.7	14.4
Capex (*)	(11.5)	(12.2)
Cash Flow from Financial Activities	(20.8)	(19.2)
A Net Financial Position	(16.5)	(17.0)

CONSOLIDATED B/S

	9M 23	9M 22		9M 23	9M 22
Net Operating Fixed Assets	181.3	175.1	Net Financial Position (*)	59.6	51.8
Net Working Capital	20.2	12.4	Group Equity Minorities	140.7 5.1	131.5 5.0
Net Financial Assets	3.9	0.8	Total Shareholders Equity	145.8	136.5
Net Capital Employed	205.4	188.3	Total Sources	205.4	188.3

FOCUS: NRI & MINORITIES

RESTRUCTURING COSTS & NRI

€M	2023		2022
	Q3	9M	Q3	9M
PATENTS AGREEMENT	---	---	---	-3,2
RESTRUCTURING SG&A	0,3	0,9	0,1	1,0
INDUSTRIAL PLAN	0,0	0,2	1,3	5,6
OTHERS	0,0	0,2	---	---
TOT NRI	0,3	1,3	1,5	3,5

▪ FOCUSED on COST CONTAINMENT and SGA Re-sizing

MINORITIES

€M	2023			2022
	MINORTY SHARES	Q3	9M	MINORTY SHARES	Q3	9M
ARIAFINA	49,0%	0,4	1,1	49,0%	0,6	1,2
TOT MINORITIES		0,4	1,1		0,6	1,2

▪ ARIAFINA (Japan) performance in line with 2022