Emak — Investor Presentation 2021

Feb 8, 2021

European Midcap Event Frankfurt February 9, 2021 Agenda

• Group overview
• 2020 Preliminary results
• Appendix

Agenda

• Group overview
• 2020 Preliminary results
• Appendix

Emak at a glance

A global player in three businesses

Global presence

Outdoor Power Equipment

Pumps & High Pressure Water Jetting

Components & Accessories

Applications and sectors

Trimmers for cutting grass and brush

GARDENING & FORESTRY

Lawn mowers and tractors for gardens and parks

Chainsaws for pruning, felling, limbing, from DIY to professional

Pumps and components for boom sprayers

Pumps for orchard airblast spraying for high pressure or low volume treatments

Hand spraying for applications inside green houses

Pumps and accessories for pressure cleaners, from compact to professional machines

INDUSTRIAL

CLEANING

AGRICULTURE

Pumps, units and accessories for application in the shipyard and in the offshore sector

Pumps, units and accessories for application in construction sites

equipment from small to professional models

Global attractive markets

Stated dividend policy ≈40% of net profit

Diversified business

Wide product range

Cash generation

Efficient and global production footprint

Committment to innovation

Agenda

• Group overview
• 2020 Preliminary results
• Appendix

Strong sales in 2020 in all business segments…….

Sales growth +8,4% (+7,4% excl. acquisitions)

Prompt response to COVID impact thanks to flexible and global production footprint and employees commitment

Results driven by strategy effectiveness: product innovation, competitiveness, strengthening of distribution network, contribution of acquistitions

Favourable season for gardening and cleaning, change in consumer habit

	Q1			Q2			Q3			Q4*			FY*
	2020	2019	∆	2020	2019	∆	2020	2019	∆	2020	2019	∆	2020	2019	∆
TOTAL	117.967	122.357 -3,6%		129.529	120.684	7,3%	112.397	93.948	19,6%	110.586	96.964	14,0%	470.479	433.953	8,4%
OPE	40.867	44.247	-7,6%	44.175	40.841	8,2%	38.885	30.057	29,4%	36.319	33.098	9,7%	160.246	148.243	8,1%
PWJ	46.932	49.138	-4,5%	52.391	51.222	2,3%	45.674	40.308	13,3%	44.322	40.582	9,2%	189.319	181.250	4,5%
C&A	30.168	28.972	4,1%	32.963	28.621	15,2%	27.838	23.583	18,0%	29.945	23.284 *not yet subject to auditing	28,6%	120.914	104.460 15,8%

…….good start of 2021

• Low market inventory level of gardening and cleaning

products;

• Demand of agricultural products supported by the

favorable price of agricultural commodities;

• High demand for sanitation and cleaning products

Agenda

• Group overview
• 2020 Preliminary results
• Appendix

Shareholders and Governance

Emak has been listed on the Italian Stock Exchange since 1998 and since 2001 on STAR segment (dedicated to mid-size companies that adhere to strict requirements appreciated by global investors in terms of governance, liquidity, transparency).

Yama is an industrial holding whose shareholders are the families that founded the Group in late 60's.

Seven families hold 97% of Yama's share capital, with shareholdings from 6% to 23%.

Chairman & CEO
Vice Chairman & CFO
Executive director
Director
Director
Director
Director
Director
Director
Director
Independent Director
Independent Director
Lead Independent Director

Montanari Stefano	Chairman
Bartoli Gianluca
Benassi Francesca

Deloitte & Touche S.p.A.

9M 2020 - Results by business segment

	OUTDOOR POWER EQUIPMENT		PUMPS AND HIGH PRESSURE WATER JETTING		COMPONENTS AND ACCESSORIES		Other not allocated / Netting		Consolidated
€/000	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019
Sales to third parties	123,927	115,145	144,997	140,668	90,969	81,176			359,893	336,989
Intersegment sales	494	430	1,888	1,489	6,763	5,396	(9,145)	(7,315)
Revenues from sales	124,421	115,575	146,885	142,157	97,732	86,572	(9,145)	(7,315)	359,893	336,989
Ebitda	8,481	7,148	22,940	20,654	17,002	12,796	(1,607)	(1,754)	46,816	38,844
Ebitda/Total Revenues %	6.8%	6.2%	15.6%	14.5%	17.4%	14.8%			13.0%	11.5%
Ebitda before non ordinary expenses	8,830	7,198	23,006	20,571	17,285	13,155	(1,607)	(1,754)	47,514	39,170
Ebitda before non ordinary expenses/Total Revenues %	7.1%	6.2%	15.7%	14.5%	17.7%	15.2%			13.2%	11.6%
Operating result	2,739	(500)	16,951	14,643	11,909	8,042	(1,607)	(1,754)	29,992	20,431
Operating result/Total Revenues %	2.2%	-0.4%	11.5%	10.3%	12.2%	9.3%			8.3%	6.1%
Net financial expenses (1)									(7,957)	(2,894)
Profit befor taxes									22,035	17,537
Income taxes									(6,276)	(5,942)
Net profit									15,759	11,595
Net profit/Total Revenues%									4.4%	3.4%
(1) Net financial expenses includes the amount of Financial income and expenses, Exchange gains and losses and the amount of the investment							Income from equity
STATEMENT OF FINANCIAL POSITION	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019
Net debt	16,594	29,304	90,706	98,863	22,737	19,071	(131)	(303)	129,906	146,935
Shareholders' Equity	173,748	176,334	65,548	62,460	57,354	50,295	(77,640)	(77,557)	219,010	211,532
Total Shareholders' Equity and Net debt	190,342	205,638	156,254	161,323	80,091	69,366	(77,771)	(77,860)	348,916	358,467
Net non-current assets (2)	129,920	137,483	87,082	94,433	34,655	30,577	(75,474)	(75,504)	176,183	186,989
Net working capital	60,422	68,155	69,172	66,890	45,436	38,789	(2,297)	(2,356)	172,733	171,478
Total net capital employed	190,342	205,638	156,254	161,323	80,091	69,366	(77,771)	(77,860)	348,916	358,467
(2) The net non-current assets of the Outdoor Power Equipment area includes the amount of Equity investments for 76,074 thousand Euro
OTHER STATISTICS	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019	30.09.2020	31.12.2019
Number of employees at period end	738	743	742	731	534	506	8	8	2,022	1,988
OTHER INFORMATIONS	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019	30.09.2020	30.09.2019
Amortization, depreciation and impairment losses	5,742	7,648	5,989	6,011	5,093	4,754			16,824	18,413
Investment in property, plant and equipment and in intangible assets	3,457	6,877	2,259	3,073	6,446	4,078			12,162	14,028

9M 2020 - Consolidated income statement

Year 2019	€/000	Q3 2020	Q3 2019	9M 2020	9M 2019
433,953	Revenues from sales	112,397	93,948	359,893	336,989
4,668	Other operating incomes	1,082	587	2,178	2,623
854	Change in inventories	533	(7,787)	(5,246)	(5,366)
(230,213)	Raw materials, consumables and goods	(60,098)	(42,488)	(186,605)	(174,077)
(81,106)	Personnel expenses	(19,851)	(18,177)	(61,206)	(60,683)
(82,066)	Other operating costs and provisions	(20,211)	(17,987)	(62,198)	(60,642)
(24,068)	Amortization, depreciation and impairment losses	(5,673)	(5,552)	(16,824)	(18,413)
22,022	Operating result	8,179	2,544	29,992	20,431
1,370	Financial income	63	110	224	310
(5,366)	Financial expenses	(1,036)	(1,355)	(3,565)	(4,450)
766	Exchange gains and losses	(997)	514	(3,226)	1,173
89	Income from/(expeses on) equity investment	123	126	(1,390)	73
18,881	Profit before taxes	6,332	1,939	22,035	17,537
(5,755)	Income taxes	(1,485)	(812)	(6,276)	(5,942)
13,126	Net profit (A)	4,847	1,127	15,759	11,595
(177)	(Profit)/loss attributable to non controlling interests	(88)	16	(183)	(54)
12,949	Net profit attributable to the Group	4,759	1,143	15,576	11,541
0.079	Basic earnings per share	0.029	0.007	0.095	0.071
0.079	Diluted earnings per share	0.029	0.007	0.095	0.071

9M 2020 - Consolidated balance sheet - Assets

31.12.2019	€/000	30.09.2020	30.09.2019
	Non-current assets
76,591	Property, plant and equipment	75,459	76,749
20,498	Intangible assets	20,947	20,774
29,716	Rights of use	29,551	30,946
63,844	Goodwill	61,061	64,079
8	Equity investments in other companies	8	8
7,399	Equity investments in associates	2,971	7,383
8,106	Deferred tax assets	8,310	8,270
2,423	Other financial assets	1,930	2,421
63	Other assets	57	68
208,648	Total non-current assets	200,294	210,698
	Current assets
158,336	Inventories	148,143	152,559
104,304	Trade and other receivables	112,949	105,752
5,225	Current tax receivables	5,164	4,300
465	Other financial assets	186	444
301	Derivative financial instruments	498	343
47,695	Cash and cash equivalents	102,015	49,701
316,326	Total current assets	368,955	313,099
524,974	TOTAL ASSETS	569,249	523,797

9M 2020 - Consolidated balance sheet - Liabilities

31.12.2019	€/000	30.09.2020	30.09.2019
	Shareholders' Equity
209,495	Shareholders' Equity of the Group	217,005	208,754
2,037	Non-controlling interest	2,005	1,934
211,532	Total Shareholders' Equity	219,010	210,688
	Non-current liabilities
98,153	Loans and borrowings due to banks and other lenders	134,596	109,871
25,426	Liabilities for leasing	25,396	26,464
8,337	Deferred tax liabilities	7,988	8,435
8,110	Employee benefits	7,873	8,193
2,304	Provisions for risks and charges	2,343	2,291
486	Other non-current liabilities	3,976	494
142,816	Total non-current liabilities	182,172	155,748
	Current liabilities
90,477	Trade and other payables	86,872	69,805
4,174	Current tax liabilities	5,346	4,753
68,373	Loans and borrowings due to banks and other lenders	68,709	74,607
4,959	Liabilities for leasing	4,947	4,965
908	Derivative financial instruments	887	1,390
1,735	Provisions for risks and charges	1,306	1,841
170,626	Total current liabilities	168,067	157,361

524,974	TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	569,249	523,797
---------	--------------------------------------------	---------	---------

Synthesis of results

€m	2011	2011 PF	2012	2013	2014	2015	2016	2017	2017 PF	2018	2019 no IFRS 16	2019
Sales	204.4	357.0	354.8	355.0	354.8	381.6	391.9	422.2	461.8	452.8	434.0	434.0
EBITDA adj	19.6	37.8	31.7	34.2	33.1	37.5	40.5	45.6	52.5	50.8	40.9	46.9
margin	9.6%	10.6%	8.9%	9.6%	9.3%	9.8%	10.3%	10.8%	11.4%	11.2%	9.4%	10.8%
EBITDA	17.5	35.8	28.8	34.2	31.5	35.8	39.5	43.9	50.1	49.4	40.1	46.1
margin	8.6%	10.0%	8.1%	9.6%	8.9%	9.4%	10.1%	10.4%	10.8%	10.9%	9.2%	10.6%
EBIT	10.4	23.7	16.6	22.4	20.0	23.3	21.9	30.0	35.8	34.0	21.5	22.0
margin	5.1%	6.6%	4.7%	6.3%	5.6%	6.1%	5.6%	7.1%	7.8%	7.5%	5.0%	5.1%
Net profit	5.8	13.0	8.6	10.5	10.2	9.0	17.7	16.4	20.6	25.6	13.4	13.1
FCF from operations*	12.9	25.0	20.8	22.4	21.7	21.5	35.3	30.4	34.9	41.1	32.1	37.2
Net Equity	140.1	140.1	145.0	150.8	160.1	168.5	181.7	187.5	187.5	205.8	212.2	211.5
Net fin. debt	97.3	97.3	99.9	76.4	79.0	99.4	80.1	125.3	125.3	117.4	116.6	146.9
Debt/Equity	0.7	0.7	0.7	0.5	0.5	0.6	0.4	0.7	0.7	0.6	0.5	0.7
Debt/EBITDA adj	5.0	2.6	3.1	2.2	2.4	2.7	2.0	2.7	2.4	2.3	2.8	3.1

* Calculated by adding the items "Net profit" plus "Amortization, depreciation and impairment losses"

2011: Acquisition of Epicenter (Ukraine), Tecomet, Comet, Sabart and Raico 2012: Start-up of Emak do Brazil, acquisition of Valley in USA 2014: Acquisition of Speed Industrie Sarl (Marocco), S.I.Agro Mexico, Geoline Electronic, Master Fluid, Speed South America (Chile) 2015: Acquisition of Lemasa (Brazil) 2016: Acquisition of 30% of Cifarelli S.p.A. 2017: Acquisition of Lavorwash Group 2018: Sale of Raico; acquisition of Spraycom 2019: acquisition of 30% of Agres

Aimone Burani, the executive responsible for the preparation of the corporate accounting documents, declares and certifies in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in this presentation correspond to the underlying accounting documents, records and accounting entries.

Emak S.p.A 42011 Bagnolo in Piano (RE) Italy www.emakgroup.com www.linkedin.com/company/emap-s-p-a-

Speakers

Mr. Fausto Bellamico – Chairman and CEO Mr. Aimone Burani – Deputy Chairman and CFO Mr. Andrea La Fata – Investor Relator andrea.lafata@emak.it - 0039-0522.956.332