Emak — Investor Presentation 2024

Mar 19, 2024

Euronext Star Conference 2024

Agenda

• Emak at a glance
• FY 2023 results
• Appendix

Agenda

• Emak at a glance
• FY 2023 results
• Appendix

Emak at a glance

Established in 1972

Listed at the Stock Exchange in 1998

3 business segments

2023 sales turnover: 566 €m

≈2,500 employees

Our strategy

Innovation

• Product innovation (emissions reduction, safety, comfort)
• Process innovation (virtual reality, 3D printing)
• Digital transformation
• New technologies and applications

Distribution

• Expand and strengthen distribution network in market with high growth potential
• Strengthen OEM relationship
• Omni-channel approach

Efficiency

• Lean approach
• Cost rationalization and operating leverage
• Value creation from acquisitions (synergies)
• Optimization of invested capital

Acquisitions

• Access new technologies
• Complete product range
• Enter new markets

Successfull M&A track record Emak do Brasil (Brazil) Valley Industries (USA) 2013 2015 2017 2018 2019 2020 2021 2022 2023 Master Fluid (Italy) S.I.Agro Mexico (Mexico) Speed South America (Chile) Lemasa (Brazil) Lavorwash Group (Italy) Spraycom (Brazil) Agres (30%) (Brazil) Agres (increase to 91%) (Brazil) Markusson (Sweden) Poli (Italy) Trebol (Spain) Raw Power (24%) (Italy) Bestway Business (USA) 2024 PNR (Italy)

Euronext Star Conference Milan - 2024 6

2012

OUTDOOR POWER EQUIPMENT

PUMPS & HIGH PRESSURE WATER JETTING

COMPONENTS & ACCESSORIES

• Emak at a glance
• FY 2023 results
• Appendix

Summary FY 2023

Sales

Outdoor Power Equipment

Decrease in first half of the year, due to the high levels of inventory in the network, the change in spending priorities by end consumers and the strong inflation already seen during 2022. Second part of the year broadly in line with the same period of 2022. In the fourth quarter, in particular, we began to see an alignment of order intake and sales on values comparable to the same period of the last financial year. The sale of components and spare parts has recorded a result in line with the previous year, indicating the use of equipment and the high level of service provided to the network by the group's distributors.

Pumps and Water Jetting

The line was growing thanks to the contribution of the Bestway acquisition. Organic decrease because of the slowdown in all the markets in which the Group operates, an effect which was accentuated in Europe in the second part of the year, while in the United States it had the most critical moment at the beginning of the year and then progressively recovered in the second half. The cleaning line is the one that has been most affected by the macroeconomic context, with a generalized decline in both hobby and professional products. Industrial products recorded sales in line with 2022 thanks mainly to very high pressure products.

Components and Accessories

Lawn care products saw a general contraction, except for the American market; the line dedicated to agriculture was affected by the general decline in the sector, particularly in the South American markets; cleaning products recorded an overall decline, characterized by a negative trend in the hobby segment and a recovery in the professional line.

Profitability

	FY 2023	FY 2022	∆	Q4 2023	Q4 2022	∆
Revenues from sales	566.3	605.7	-6.5%	116.4	113.5	2.6%
EBITDA Adj	67.9	76.6	-11.4%	7.3	7.9	-7.5%
% on sales	12.0%	12.6%		-1.5%	-1.3%
EBIT	37.2	46.8	-20.5%	(1.1)	(2.4)	-54.0%
% on sales	6.6%	7.7%		-1.9%	-2.3%
Financial income	5.6	4.0		2.8	1.0
Financial expenses	(17.8)	(8.6)		(6.1)	(3.8)
Forex	0.4	1.9		(0.5)	(1.0)
Profit befor taxes	25.4	44.1	-42.3%	(5.0)	(6.3)	-21.2%
Income taxes	(5.5)	(12.9)		2.1	0.3
Net profit	19.9	31.2	-36.1%	(2.9)	(6.0)	-51.7%

EBITDA adjusted benefited from the change in the consolidation area by €2.2 million and from the reduction in logistics costs, while it was affected by the decrease in sales volumes and the increase in commercial costs.

EBIT 2022 figure included a loss of € 2.9 million due to the reduction in the value of goodwill.

Consolidated net profit was affected by the increase in financial charges due to the higher average debt and, above all, due to the increase in variable rates to which the costs of financing are linked.

Consolidated balance sheet

€m	31.12.2023	31.12.2022
Net non-current assets	223,6	206,6
Net working capital	251,6	247,7
Total net capital employed	475,2	454,3
Net financial position	(191,5)	(177,3)
IFRS16 effect	(43,9)	(38,0)
Net financial position (no IFRS16)	(147,6)	(139,3)
Total equity	283,7	277,0

• Net working capital:
➢ Acquisition impact of 12€m
➢ Progressive normalization of the level of
inventories
➢ Decline in trade receivables due to lower sales
• Net financial position
➢ Overall improved cash flow generation
➢ Acquisition impact of 20€m

Net Financial Position

Cash flow

Agenda

• Emak at a glance
• FY 2023 results
• Appendix

Results by business segment – FY 2023

	OUTDOOR POWER PUMPS AND WATER EQUIPMENT JETTING		COMPONENTS AND ACCESSORIES		Other not allocated / Netting		Consolidated
€/000	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022
Sales to third parties	166,994	199,436	244,252	241,283	155,071	165,004			566,317	605,723
Intersegment sales	393	357	3,045	3,308	8,129	9,685	(11,567)	(13,350)
Revenues from sales	167,387	199,793	247,297	244,591	163,200	174,689	(11,567)	(13,350)	566,317	605,723
Ebitda (*)	11,694	12,257	31,290	34,910	25,517	31,937	(2,197)	(3,025)	66,304	76,079
Ebitda/Total Revenues %	7.0%	6.1%	12.7%	14.3%	15.6%	18.3%			11.7%	12.6%
Ebitda before non ordinary expenses (*)	11,984	12,495	31,928	35,082	26,163	32,092	(2,197)	(3,025)	67,878	76,644
Ebitda before non ordinary expenses/Total Revenues %	7.2%	6.3%	12.9%	14.3%	16.0%	18.4%			12.0%	12.7%
Operating result	3,834	1,251	20,263	26,054	15,324	22,475	(2,197)	(3,025)	37,224	46,755
Operating result/Total Revenues %	2.3%	0.6%	8.2%	10.7%	9.4%	12.9%			6.6%	7.7%
Net financial expenses (1)									(11,789)	(2,658)
Profit befor taxes									25,435	44,097
Income taxes									(5,513)	(12,932)
Net profit									19,922	31,165
Net profit/Total Revenues%									3.5%	5.1%
(1) Net financial expenses includes the amount of Financial income and expenses, Exchange gains and losses and the amount of the						Income from equity investment
STATEMENT OF FINANCIAL POSITION	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022
Net debt (*)	11,174	21,295	134,618	108,992	45,703	47,018	0	0	191,495	177,305
Shareholders' Equity	185,337	184,363	99,670	98,689	76,978	72,228	(78,318)	(78,293)	283,667	276,987
Total Shareholders' Equity and Net debt	196,511	205,658	234,288	207,681	122,681	119,246	(78,318)	(78,293)	475,162	454,292
Net non-current assets (2) (*)	122,370	122,922	116,156	101,679	60,261	57,242	(75,212)	(75,238)	223,575	206,605
Net working capital (*)	74,141	82,736	118,132	106,002	62,420	62,004	(3,106)	(3,055)	251,587	247,687
Total net capital employed (*)	196,511	205,658	234,288	207,681	122,681	119,246	(78,318)	(78,293)	475,162	454,292
(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	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022
Number of employees at period end	725	747	959	873	669	655	9	9	2,362	2,284
OTHER INFORMATIONS	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022	31.12.2023	31.12.2022
Amortization, depreciation and impairment losses	7,860	11,006	11,027	8,856	10,193	9,462			29,080	29,324
Investment in property, plant and equipment and in intangible assets	6,202	4,461	9,814	8,639	6,920	8,632			22,936	21,732

Consolidated income statement

€/000	Year 2023	of which to related parties	Year 2022	of which to related parties
Revenues from sales	566,317	969	605,723	1,045
Other operating incomes	5,493		4,753	12
Change in inventories	755		12,790
Raw materials, consumables and goods	(298,310)	(1,754)	(331,528)	(2,452)
Personnel expenses	(105,036)		(99,519)
Other operating costs and provisions	(102,915)	(643)	(116,140)	(526)
Amortization, depreciation and impairment losses	(29,080)	(1,859)	(29,324)	(4,698)
Operating result	37,224		46,755
Financial income	5,621		4,007	1
Financial expenses	(17,830)	(384)	(8,560)	(366)
Exchange gains and losses	418		1,895
Income from/(expeses on) equity investment	2		-
Profit before taxes	25,435		44,097
Income taxes	(5,513)		(12,932)
Net profit (A)	19,922		31,165
(Profit)/loss attributable to non controlling interests	(847)		(897)
Net profit attributable to the Group	19,075		30,268
Basic earnings per share	0.117		0.185
Diluted earnings per share	0.117		0.185

Consolidated balance sheet - Assets

€/000	Notes	31.12.2023	of which to related parties	31.12.2022	of which to related parties
Non-current assets
Property, plant and equipment	18	86,021		82,524
Intangible assets	19	29,228		24,482
Rights of use	20	41,907	13,014	36,461	13,860
Goodwill	21	72,554	9,914	71,216	9,914
Equity investments in other companies	22	8		8
Equity investments in associates	22	802		-
Deferred tax assets	32	11,531		10,395
Other financial assets	27	1,267	74	1,151	111
Other assets	24	96		60
Total non-current assets		243,414		226,297
Current assets
Inventories	25	234,656		233,970
Trade and other receivables	24	121,936	2,132	119,661	1,079
Current tax receivables	32	11,249		9,967
Other financial assets	27	59	37	38	37
Derivative financial instruments	23	1,028		2,707
Cash and cash equivalents	26	75,661		86,477
Total current assets		444,589		452,820
TOTAL ASSETS		688,003		679,117

Consolidated balance sheet - Liabilities

€/000	Notes	31.12.2023	of which to related parties	31.12.2022	of which to related parties
Shareholders' Equity
Shareholders' Equity of the Group	28	279,352		273,003
Non-controlling interests		4,315		3,984
Total Shareholders' Equity		283,667		276,987
Non-current liabilities
Loans and borrowings due to banks and other lenders	30	138,547		152,346
Liabilities for leasing	31	36,433	11,867	31,682	12,789
Deferred tax liabilities	32	7,968		7,962
Employee benefits	33	6,066		6,291
Provisions for risks and charges	34	2,885		2,778
Other liabilities	35	1,653		1,510
Total non-current liabilities		193,552		202,569
Current liabilities
Trade and other payables	29	109,772	1,606	109,344	1,233
Current tax liabilities	32	4,691		4,984
Loans and borrowings due to banks and other lenders	30	86,424		76,594
Liabilities for leasing	31	7,503	1,819	6,357	1,670
Derivative financial instruments	23	603		699
Provisions for risks and charges	34	1,791		1,583
Total current liabilities		210,784		199,561
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		688,003		679,117

Euronext Star Conference Milan - 2024 22

Business seasonality

Bestway AG

• The company is recognized as a key player in the US market for the production and marketing of sprayers, equipment for agricultural applications.
• The transaction allowed the expansion and completion of PWJ product range
• The North American agricultural market can be reached and served in a more capillary way.
• FY 2022 figures: turnover of 32 \$m; EBITDA of 2.5 \$m.
• The final consideration for the acquisition was equal to 22.1 million US dollars.

ELECTRONICS

Raw Power

• On 22 February 2023, the Parent Company ratified the entry into the company Raw Power S.r.l., based in Reggio Emilia, through the subscription of a share capital increase for a 24% stake, for an amount equal to Euro 800 thousand .
• The company deals with all aspects related to power electronic design, aimed at automation and static conversion of energy and the design of electric motors and generators.
• The operation is carried out with the intention of allowing Emak S.p.A. to enhance the fundamental know-how of electric motor technology in order to increase competitiveness in the battery-powered products market, which is constantly and rapidly evolving.

PNR Group

• Group headquartered in Italy, made up of 5 companies (4 in Europe and 1 in the USA), active in the design, production and marketing of components for industrial cleaning
• Applications in Group's similar sectors, such as high-pressure washing and agriculture, and in diversified sectors, such as metal, paper, chemical, pharmaceutical and food.
• Acquisition of specific know-how which will allow the further expansion of the product range for industrial cleaning and access to new synergistic sectors with the current business areas of the Components and Accessories segment
• FY 2023 preliminary figures: turnover of 15 €m; EBITDA margin 22%; net debt 0.6 €m.
• Total consideration for the acquisition was equal to 15 €m.

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%.

Board of Directors Livatino Massimo Chairman Bartoli Luigi Vice Chairman & CEO Becchi Cristian CFO Baldi Francesca Director Bartoli Ariello Director Becchi Paola Director Ferrari Giuliano Director Salsapariglia Marzia Director Spaggiari Vilmo Director Zambelli Paolo Director Iotti Elena Independent Director Lanza Alessandra Independent Director Grappi Silvia Independent Director

Board of Statutory Auditors

Montanari Stefano Chairman Labanti Roberta Pasquetti Livio

Independent Auditors

Deloitte & Touche S.p.A.

ESG indicators

Environmental	2023	2022
Scope 1 GHG emissions Tons C02eq	6,567	4,302
Scope 2 GHG emissions - market based Tons C02eq	8,060	8,047
Scope 2 GHG emissions - location based Tons C02eq	7,082	7,274
Scope 1 + Scope 2 (market based) Tons C02eq	14,627	12,349
Scope 1 + Scope 2 (location based) Tons C02eq	13,650	11,576
Total waste generated Tons	1,979	2,360
% of recovered waste	60%	67%
% of hazardous waste	3%	4%
Social	2023	2022
# employees	2,362	2,284
% men	66%	65%
% women	34%	35%
Governance	2023	2022
Board gender diversity	46%	46%
Female	6	6
Male	7	7
Total board members	13	13
Independent directors	3	3
Executive directors	2	2
Non executives directors	8	8
Separate chairman and CEO	Yes	Yes
Code of ethics	Yes	Yes

Synthesis of results

€m	2014	2015	2016	2017	2017 PF	2018	2019	2020	2021	2022	2023
Sales	354.8	381.6	391.9	422.2	461.8	452.8	434.0	469.8	588.3	605.7	566.3
EBITDA adj	33.1	37.5	40.5	45.6	52.5	50.8	46.9	56.3	77.4	76.6	67.9
margin	9.3%	9.8%	10.3%	10.8%	11.4%	11.2%	10.8%	12.0%	13.2%	12.7%	12.0%
EBITDA	31.5	35.8	39.5	43.9	50.1	49.4	46.1	55.6	77.3	76.1	66.3
margin	8.9%	9.4%	10.1%	10.4%	10.8%	10.9%	10.6%	11.8%	13.1%	12.6%	11.7%
EBIT	20.0	23.3	21.9	30.0	35.8	34.0	22.0	32.9	52.9	46.8	37.2
margin	5.6%	6.1%	5.6%	7.1%	7.8%	7.5%	5.1%	7.0%	9.0%	7.7%	6.6%
Net profit	10.2	9.0	17.7	16.4	20.6	25.6	13.1	19.6	33.1	31.2	19.9
margin	2.9%	2.4%	4.5%	3.9%	4.5%	5.7%	3.0%	4.2%	5.6%	5.1%	3.5%
FCF from operations *	21.7	21.5	35.3	30.4	34.9	41.1	31.8	36.7	51.4	53.8	40.8
Net Equity	160.1	168.5	181.7	187.5	187.5	205.8	211.5	222.3	255.9	277.0	283.7
Net fin. debt	79.0	99.4	80.1	125.3	125.3	117.4	146.9	126.6	144.3	177.3	191.5
Debt/Equity	0.5 * Calculated by adding the items "Net profit" + "Amortization, depreciation and impairment losses" –	0.6	0.4	0.7	0.7	0.6 IFRS 16 effect (starting from 2019)	0.7	0.6	0.6	0.6	0.7
Debt/EBITDA adj	2.4	2.7	2.0	2.7	2.4	2.3	3.1	2.2	1.9	2.3	2.8

* Calculated by adding the items "Net profit" + "Amortization, depreciation and impairment losses" – IFRS 16 effect (starting from 2019)

2014: Acquisition of Speed Industrie Sarl (Marocco), S.I.Agro Mexico, Geoline Electronic (Italy), Master Fluid (Italy), 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 (Brazil) 2019: acquisition of 30% of Agres (Brazil) 2020: acquisition of 51% of Markusson (Sweden); increase in Agres to 91% 2021: Acquisition of 80% of Poli (Italy) 2022: Acquisition of 83.33% of Trebol (Spain) 2023: Acquisition of Bestway AG (USA), 24% of Raw Power (Italy)

Roberto Bertuzzi, manager 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.

Speakers

Mr. Luigi Bartoli– CEO Mr. Cristian Becchi – CFO Mr. Andrea La Fata – Investor Relator andrea.lafata@emak.it - 0039-0522.956.332