Elica — Investor Presentation 2024

May 9, 2024

Q1 2024 Results

May 9th, 2024

Analyst Presentation

NHO

elica Agenda

Q1 Results Highlights .01

Financial Review .04

Industry Trend .02

Sales Dynamics .03

.06 Financial Highlights

Annex:

Closing Remarks & Outlook .05

Q1 2024 Results

01 Q1 Results Highlights

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Closing Remarks

Highlights

NET SALES
117,2 MŁ

YoY CHANGE -11,8 MŁ -9,2% (-8,5% organic)

Negative Market, Positive dynamics in North America

• Cooking: Persisting demand weakness in all product categories. Positive contribution from North America, driven by OEM and new distribution strategy implemented.
• Motors: Strongly negative heating market across Europe after 2023 exceptional peak coupled with uncertainty and/or regulation delay

EBIT ADJ 1,8 ME 1.5%

YoY CHANGE -4,9 ME -3,7 pts

NFP (43,2) MŁ Leverage: ~1,0

YoY CHANGE -10 ME

Marqins under pressure

▪ In line with our expectations, impacted by Investments in New Elica Rebranding, direct distribution, combined with a still high promotional market environment

Net Financial Position

• Remains solid to support mid-term roadmap and shareholders return.
• 70M€ of new loan to support the mid-term investment strategy

ING NEGATIVE MARKET ENVRONMENTO BOTH IN COOKING & MOTOR DIVISION AFFECTING RECOVERY AND MARGINS ELICA REBRANDING INVESTMENT, NEW PRODUCTS LAUNCH, DISTRIBUTION CONTINUES, IN COHERENCE WITH MID TERM ROADMA.

Improving Revenues Quarter over Quarter

Quarterly Revenue Trend 2023-2024 (M€)

Despite Industry remains negative, revenues showing a Q/Q recovery since 3Q 2023.

Drivers are new OEM accounts and North America Distribution (Cooking), market share increase in key customers (Motors)

Q2 outlook confirms the improvement trend, despite very weak Cooking German and French markets

H2 dynamics: still based on YoY flat industry assumptions

Annex

Investing on our brand & product roadmap, ready for the next wave of growth

Housing market fundamentals stabilizing

Housing market braced for a nuanced 2024, with affordability improving, mortgage rates stabilizing and price trends promising stability in most markets.

Living sector structural undersupply both in EU and US

Over the last decade, construction activity was 45% below the Pre-Financial Crisis average and supply has not been able to keep up with demand. Supply was the main factor behind the resilience of European housing. Developers dealing with a lack of funding, lengthy planning procedures, more stringent regulations around sustainability, while urban population growth will continue to support demand.

"Soft landing" & Urban Population Growth to Drive future Demand

European economy held up better than expected, creating 600K net jobs in H2 2023, while wage growth accelerate. In the capital cities of Europe, the number of households is expected to increase by 3% over the next five years. Both factors will further support the demand for housing

Source: Fitch Ratings, Haver, central banks

Source: European Commission, S&P Global Rating

REVENUES

6%

ADJ EBIT

< 0,5 x

LEVERAGE

Annex

Upside Potentials

Well positioned to achieve our Mid Term Goals.

		Cooking 111	Motors
	ENLARGED PRODUCT RANGE	LHOV, Built-in New Range, New Cooktops for US Market	Heat Pumps, Hydrogen
	WIDER DISTRIBUTION NETWORK	«Boots on the Ground» in North America & Canada Arietta Brand	Growth in Key EU Accounts EMC-FIME capabilities
Strategy	GEO Expansion	Netherlands	Americas
	OEM GROWTH	New Accounts & Products EU, AMERICAS	New Accounts EU, Turkey
	SCALABLE INNOVATION	Induction Growth in US, Electronic internal Development	BLDC Systems, Domestic air movement

elica ACCRETIVE M&A > 500 M€ US INDUCTION ACCELERATION HEAT PUMPS NEW CUSTOMERS HOUSING MARKET RECOVERY AMERICAS MARKET FOR MOTORS EU INCENTIVE STRATEGY POSITIVE MARKET

Industry

FLAT MARKET vs 2023

M&A

Product Range Expansion, GEO, Professional Channel Domestic air movement, distribution & filtration

02 Industry Trend

Q1 2024 Results

EUROPE - Sales Units Trend

Change % vs LY

Q1 2024 Results

Annex

NORTH AMERICA - Ventilation Industry Unit Shipments

Volume Data Change % vs LY

SOURCE AHAM Total Cooking category: Q1 '24 vs Q1 '23 -7%

Source: EHI – European Heating Industry Countries: Germany, Italy, Netherlands, UK, France, Spain

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203 Sales Dynamics

Q1 2024 Results

Sales Key Drivers & Regional Overview

Sales Key Drivers

Q1 2024 results improved on a sequential basis (+4%) compared to Q4 2023

Growth in the North America driven by

the new distribution strategy implemented in the region. EMEA region demand weakness still persisting in both Cooking and Motor business

Sales by Business

	Motors	नि Cooking D
Q1 2023	32,7	96,4	129,0
Currency	+0,1	-0,9	-0,8
	+0,2%	-0,9%	-0,6%
ORGANIC Growth	-6,0	-5.1	-11,0
	-18,2%	-5,3%	-8,5%
YoY Change	-5,9	-5,9	-11,8
	-18,0%	-6,2%	-9,2%
Q1 2024	26,8	90,4	117,2

Cooking Sales by Region & by brand

Cooking Sales by Region

	Americas	Emea	Asia
Q1 2023	16,3	72,9	7,2	96,4
Currency	-0,0	-0,2	-0,7	-0,8
	-0,3%	-0,2%	-9,3%	-0,9%
ORGANIC Growth	+1,6	-6,5	-0,2	-5.1
	+9,9%	-8,9%	-2,3%	-5,3%
YoY Change	+1,6	-6,7	-0,8	-5,9
	+9,6%	-9,1%	-11,6%	-6,2%
Q1 2024	17,8	66,3	6,3	90,4

Cooking Sales by brand

	OEM	Own Brand
Q1 2023	36,8	59,6	96,4
Currency	+0,2	-1.1	-0,9
	+0,5%	-1,8%	-0,9%
ORGANIC Growth	+0,6	-5,7	-5,1
	+1,7%	-9,5%	-5,3%
YoY Change	+0,8	-6,7	-5,9
	+2,2%	-11,3%	-6,2%
Q1 2024	37,6	52,8	90,4

Americas Sales Highlights

Double digit growth thanks the new distribution strategy implemented in the region, new product launches (Hob) and new OEM customer activation:

B2C:

• · Increased customer base in North America with the activation of new distributors/customers
• · New induction and aspiration hobs made in Mexico

B2B:

· Increased OEM customer base in North America (The Home Depot) entering the Do It Yourself channel started at the end of 01 '23

Milan Design Week

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The fair. Elica at Eurocucina

62nd edition of the Salone del Mobile with more than 360.000 visitors, 54% foreigners.

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Straordinaria in numbers.

Some supporting evidence of the great visibility of the brand's presence at the FuoriSalone with the art installation.

70.000+

FuoriSalone

Special Mention

Awards 2024

Visitors

Economics 04 & Financials

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म

Q1 2024 Results

Annex

Margins & Key Result Drivers

€M	Q1 2024	Q1 2023	% VAR
NET SALES	117,2	129,0	(9,2)%
ADJUSTED EBITDA	7,6	12,6	(39,7)%
% NET SALES	6,5%	9,7%	-320 bps
ADJUSTED EBIT	1,8	6,7	(73,2)%
% NET SALES	1,5%	5,2%	-370 bps
NRI	(0,1)	(0,6)	(86,1)%
REPORTED EBIT	1,7	6,0	(71,8)%
% NET SALES	1,5%	4,7%	-320 bps
PBT	0,0	5,0	(99,5)%
% NET SALES	0,0%	3,9%	-390 bps
NET PROFIT	0,4	3,8	(88,3)%
% NET SALES	0,4%	2,9%	-250 bps
MINORITIES	0.4	0,4	17,1%
GROUP NET PROFIT	0,0	3,4	99,1%
% NET SALES	0,0%	2,6%	-260 bps

CHANGES vs. PRIOR YEAR
VOLUME
PRICE / MIX
RAW MATERIAL INFLATION	+
COST TAKEOUT	+
CURRENCY
D&A	+
ADJ EBIT	-4,9
NRI
FINANCIAL COSTS
COMBINED TAX RATE	+
NET PROFIT	-3,4

Annex

Net Financial Position

€M	Q1 2024	Q1 2023	VAR
OPENING NFP	53.4	43.9	(11,1)
IFRS 16 EFFECT	12,1	14.0	(1,9)
OPENING NFP - Net of IFRS 16	41,3	29,9	(11,4)
OPERATING CASH FLOW	7,5	13.0	(5,5)
CAPEX	(3,1)	(2,9)	(0,3)
TAXES	(0,9)	(1,1)	0,2
OPERATING FCF	3,5	9,0	(5,6)
% SALES	0,7%	1,7%
BUY BACK	(0,4)	(0,4)	0,0
M&A CASH OUT		(6,5)	6,5
DIVIDEND & FINANCIAL ITEMS	(2,4)	(2,0)	(0,4)
OTHER NRI	(2,5)	(3,1)	0,6
CLOSING NFP - Net of IFRS 16	43,2	33.0	(10,3)
LEVERAGE - (NFP/EBITDA)	1,0	0,7

• NFP stable and Leverage in line with December '23 despite Ebitda Margin pressure.
• Optimized Working Capital thanks to careful management of inventory level, DSO (Days Sales Outstanding) and DPO (Days Payable Outstanding)
• New financing (70M€) to support Mid-Term Strategy with 2 years of pre-amortizing period

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-119

Net Working Capital

€M	Q1 2024	Q1 2023	VAR
Trade receivables	39.6	46.1	(6.5)
% on annualized sales	8.4%	8.9%	(50) bps
Inventories	90.8	106.8	(16.1)
% on annualized sales	19.4%	20.7%	(130) bps
Trade payables	(119.4)	(139.5)	20.1
% on annualized sales	(25.5)%	(27.0)%	150 bps
Managerial Working Capital	11.0	13.4	(2.4)
% on annualized sales	2.3%	2.6%	(30) bps

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• 139 - 139 - 139 - 139

A WELL BALANCED WORKING CAPITAL POSITION

-140 -----

-140

RADE

Q1 2024 Results

05 Closing Remarks

(删) New EVO Filter System

(i) Automatic Cooking Settings

(2) ExtrAir™ Power Aspiration S New Scratchency Concy & New Scratchproof Matt Gass

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स्वास

Q1 2024 Results

1. 1. 1. 19.

Closing Remarks & Outlook

• "Extraordinary Cooking" transformation successfully launched
• Q1 Sales in line with expectations: persisting demand weakness in both Divisions and in all geographies.
• Growth in North America (+6,9%) thanks to new OEM Accounts and Brand distribution strategy.
• Increased Pressure on Margins in Cooking to protect our Market Share, following sector dynamics.
• Relevant investment plan on our brand & product roadmap both for Cooking and Motor Division
• FY Guidance ■

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• · Revenues in line with market expectation (465-470 M€), despite difficult business environment in some key EU Countries and high customer stock in Heating Sector (Motor Division)
• Pressure on margins will continue to defend our shares and proceed with our Cooking Transformation Plan
• NFP in line with FY 2023 .

2024 Expectations

Strategy

Q1 Consolidated Income Statement

€M	Q1 2024	Q1 2023	%
Net Sales	117.2	129.0	-9.2%
EBITDA Adj	7.6	12.6	-39.7%
0/0	6.5%	9.7%	-327 bps
EBITDA	7.5	11.9	-37.3%
0/0	6.4%	9.3%	-287 bps
EBIT	1.7	6.0	-71.8%
0/0	1.5%	4.7%	-323 bps
Net Result	0.4	3.8	-88.3%
0/0	0.4%	2.9%	-254 bps
EPS* - Euro cents	0.05	5.44	-99.1%

* 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.

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Net Working Capital

€M	Q1 2024	FY 2023	△
Trade receivables	39.6	26.7	12.9
% on annualized sales	8.4%	5.6%	280 bps
Inventories	90.8	90.9	(0.1)
% on annualized sales	19.4%	19.2%	20 bps
Trade payables	(119.4)	(107.0)	(12.39)
% on annualized sales	(25.5)%	(22.6)%	(290) bps
Managerial Working Capital	11.0	10.6	0.4
% on annualized sales	2.3%	2.2%	10 bps
Short term assets & liabilities	1.2	0.4	0.7
% on annualized sales	0.3%	0.1%	20 bps
Net Working Capital	12.2	11.0	1.1
% on annualized sales	2.6%	2.3%	30 bps

Consolidated Cash Flow

€M	Q1 2024	Q1 2023
Operating Cash Flow	5.2	10.2
Capex (*)	(3.1)	(2,9)
Cash Flow from Financial Activities	(3.8)	(10.4)
Net Financial Position	(1.8)	(3.0)

Q1 2024 Results

Consolidated B/S

	Q1 2024	Q1 2023		Q1 2024	Q1 2023
Net Operating Fixed Assets	187.9	178.5	Net Financial Position	55.1	46.6
Net Working Capital	12.2	7.1	Group Equity	142.7	138.7
			Minorities	5.0	4.8
Net Financial Asset	2.7	4.5	Total Shareholders' Equity	147.7	143.5
Net Capital Employed	202.8	190.1	Total Sources	202.8	190.1

* Including IFRS 16 effect.

Non Recurring items & Minorities

Non Recurring items
€M	Q1 2024	Q1 2023
RESTRUCTURING SG&A	0,2	(0,5)
OTHERS	(0,2)	(0,1)
Total Non Recurring Items	(0,1)	(0,6)

Minorities
€M	MINORTY SHARES	Q1 2024	MINORTY SHARES	Q1 2023
ARIAFINA	49%	0,4	49%	0,4
Total MINORITIES		0,4		0,4

▪ ARIAFINA (Japan) performance in line with 2023

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 their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products 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 forwardlooking information or statements

elica

IR Elica S.p.A .:

Francesca Cocco Lerxi Consulting - Investor Relations T +39 (0)732 610 4205 E-mail: investor-relations@elica.com

Elica S.p.A.:

Michela Popazzi Corporate & Internal Communication Specialist Mob: +39 345 6130420 E-mail: m.popazzi@elica.com

Press Office: Havas PR

Valentina Burlando M +39 335.6182360 valentina.burlando@havaspr.com Giulia Bertelli M +39 340.1453906 giulia.bertelli@havaspr.com

Thank you