Second Quarter 2021 and Half-Year Consolidated Results Interpump Group S.p.A.

Welcome! OurQ2 2021 & H1 2021 Results start on page	2
use an Introduction? See New to the company and could page	8
update on Markets and Diversification Our yearly is on page	16
More information on Growth Strategy Recent M&A and on page	20
Shareholder Information on page You will find	27
in the Appendix Some useful time series are included on page	29

Disclaimer

This document has been prepared by Interpump Group S.p.A for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company.

Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the "Group"), as well as any of their directors, officers, employees, advisers or agents (the "Group Representatives") accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available.

This document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking statements are subject to significant risks and uncertainties (many of which are outside the control of the Company and/or the Group) which could cause a material difference between forward-looking information and actual future results.

The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forwardlooking statements.

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€405.5mn Consolidated Sales strong organic growth across both divisions

25.1% EBITDA Margin € 101.8 mn, highest ever for a quarter

Strong cash generation despite organic growh € 56.5 mn Free Cash Flow with a further € 23.1 mn reduction in net debt despite dividend payment

	Q2 20	Q221 FY 2018	y/y
Organic growth in sales FX contribution Increase in perimeter			+39.4% -2.9% +0.7%
TOTAL REPORTED SALES	295.6	405.5	+37.2%
EBITDA	64.9	101.8	+56.9%
EBITDA / SALES	22.0%	25.1%
NET INCOME*	30.2	74.5	+147.1%
Tax rate*	26.0%	4.4%
NET INCOME (adjusted)		54.5	+80.5%
Tax rate		30.1%
*Includes a € 20.1mn one-off fiscal benefit from the step-up of trademarks for tax purposes in 2021
NET DEBT (as at 30/6)	344.2	206.7	- 137.4 mn
COMMITMENTS FOR PURCHASE OF SUBSIDIARIES	62.4	65.6	+ 3.2 mn
TREASURY SHARES (as at 30/6)	1,430,006	2,229,256

	H1 20	H121 FY 2018	y/y
Organic growth in sales			+24.4%
FX contribution Increase in perimeter			-3.1% +0.8%
TOTAL REPORTED SALES	639.5	781.1	+22.1%
EBITDA	139.2	193.3	+38.8%
EBITDA / SALES	21.8%	24.7%
NET INCOME*	63.5	128.3	+102.2%
Tax rate*	27.1%	14.8%
NET INCOME (adjusted)		108.2	+70.5%
Tax rate		28.1%
*Includes a € 20.1mn one-off fiscal benefit from the step-up of trademarks for tax purposes in 2021
NET DEBT (as at 30/6)	344.2	206.7	- 137.4 mn
COMMITMENTS FOR PURCHASE OF SUBSIDIARIES	62.4	65.6	+ 3.2 mn
TREASURY SHARES (as at 30/6)	1,430,006	2,229,256

WATER-JETTING	Q220 Q4 18	y/y	H120 FY 2018	y/y
Organic growth in sales FX contribution Increase in perimeter		+24.1% -4.0% +1.2%		+12.5% -3.9% +1.5%
TOTAL REPORTED SALES (net of inter-sector)	122.4	+21.3%	231.0	+10.1%
EBITDA	35.9	+44.5%	66.9	+26.0%
EBITDA / SALES (on total sales including inter-sector)	29.0%		28.6%

HYDRAULICS	Q220 Q4 18	y/y	H120 FY 2018	y/y
Organic growth in sales FX contribution Increase in perimeter		+47.2% -2.2% +0.4%		+30.2% -2.8% +0.6%
TOTAL REPORTED SALES (net of inter-sector)	283.1	+45.4%	550.0	+28.0%
EBITDA	65.9	+64.6%	126.4	+46.8%
EBITDA / SALES (on total sales including inter-sector)	23.2%		23.0%

Organic recovery of top line, significant value added by acquisitions despite adverse FX, increased profitability and improved NFP

* combination of published organic growth rates for the two periods.

As they pertain to slightly different perimeters, this figure should be regarded as a proxy.

	30/06/2019	30/06/2020	30/06/2021
ADJ. NET FINANCIAL POSITION	345.8	370.3	207.0

including commitments for purchase of subsidiaries, and treasury shares at book value

FINANCIALS

net of Electric Motors (dismissed in 2011) for consistency with current business

Prudent debt policy and satisfactory return on capital employed

Net Debt / EBITDA (12 M)

Net of treasury stock (at book value) and including commitments for purchase of investments

Return On Capital Employed (12M)

average of (consolidated shareholder's equity + net debt) during the year

Dotted lines represent 2019 data net of IFR16 effect, for comparison with the previous year.

Interpump Group

an Italy-based, international industrial manufacturing group

Two business sectors: and

World leader in high-pressure plunger piston pumps (historical core business)
Also included in this sector: flow handling components for food, cosmetic and pharmaceutical industry

WATER-JETTING HYDRAULICS

Wide range of components for mobile and non-mobile hydraulics: PTOs, cylinders, gear pumps, valves, hoses, fittings…
Also included in this sector: reduction gears, hoses, fittings and piping systems for nonhydraulic applications

STOCK MARKET

Public company (~75% free float) listed at the Milan Stock Exchange since 1996 (ticker: IP.MI)
Unique and successful growth story complementing organic growth with numerous bolt-on acquisitions
Among the largest market caps in the STAR segment
Constituent of main FTSE MIB index since June 2020

Interpump's distinctive features

Vertically-integrated manufacturing wherever possible
Use of general-purpose programmable machine tools; No rigid production lines

• Across the widest possible range of applications, products,

• Standard metal-working processes facilitate outsourcing if needed

Product mix and sales strategies can quickly adapt to actual signals picked from the markets

Standardization and mergers are not absolute goals. They are only pursued when an advantage is evident

• High share of local-for-local production

customers, geographies

High diversity of business models, corporate structures, geographical extension
Very decentralized structure, backed by centralized allocation of resources and tight monitoring & control

Preserving identity, brand, local supply chain, sales and workforce; preferably, seller is taken onboard as a minority shareholder

Not just transactions: a joint effort to write the next chapter of a company's story
Reasonable, "industrial" multiples paid
No restructuring costs or related execution risk
Retention of soft skills and talents
Exposure to multiple cycles reduces volatility
Quick and optimal reaction to unexpected growth or adversities
Acquired companies maintain their identity but shift from entrepreneurial to industrial
Positive influence on margins

WATER JETTING		Business sector overview
		32% of Group sales and 38% of EBITDA in 2020
		HIGH PRESSURE PUMPS, DEVICES AND SYSTEMS		FLOW HANDLING COMPONENTS FOR FOOD, COSMETICS & PHARMA
DESCRIPTION OF PRODUCTS	8888 8888	Piston pumps from 1 to 2,000 hP (0.7 to 1,500 KW) used in high-pressure applications, up to 6,000 bar (87,000 psi) Standard or custom design	high-pressure	Stainless steel agitators, mixers, manifolds, tanks, cleaning in-place systems, heat treatment, centrifugal separators, low-pressure pumps (lobe, progressive cavity,
		Pump-based turnkey systems and assemblies	homogenizers	centrifugal)
ADDRESSABLE MARKET (est.)	€	€ 1 bn / yr		€ 9 bn / yr
MARKET FEATURES		High barriers to entry due to limited niche size High fragmentation: smaller companies, often very vertically specialized, or non-strategic products from large pump manufacturers		Extreme geographic & product diversification: size not necessarily an advantage
MARKET GROWTH DRIVERS		New applications for high-pressure technology continuously developed across multiple industries		Development & urbanization: shift towards processed food Nutritional awareness: new demand for enhanced ingredients/processing
ACQUISITION OPPORTUNITIES		Limited		Plentiful
INTERPUMP COMPETITIVE ADVANTAGES		Largest player in its niche Top-of-the-market product performance Premium positioning due to history and reputation After-sales revenues (~1/3 of sector total)		Hygienically sensitive applications require the same skills needed at even higher levels for high-pressure pumps: sophisticated flow design, high-precision metal machining & surface treatments Focus on high-margin components

WATER

JETTING High-pressure application examples

FOOD, COSMETICS, PHARMACEUTICAL (in addition to flow handling components) High-pressure homogenizers Water-jet food cutting, slicing, meat separation High-pressure sterilization

CONSTRUCTION Hydro-demolition * Surface preparation * Renewal of armored concrete infrastructures*

INDUSTRY Machine drilling & cutting* Pulp & paper Intertwining of fibers in non-vowen textiles production Overspray removal from painting booth grids

STEEL / ALUMINUM Descaling of steel bars* Cleaning of tanks & vessels used in aluminum processing*

CLEANING

Mid- to high-power professional & industrial cleaning* Car washing systems Airport tarmacs * Fish-farming nets *

AUTOMOTIVE

Deburring of common-rail engine heads* Cutting of bodywork and other materials Cleanup of welded seals

MARINE / SHIPYARDS Water-blasting paint removal* Hull cleaning* Fuel pumps for methanol-converted marine engines

WATER PROCESSING Misting Reverse-osmosis desalination

CONTRACTORS

Service companies who buy or rent general-purpose highpressure systems and offer various industrial cleaning and maintenance services to third parties across different industries (typical of the U.S. market)

OIL & GAS

An asterisk (* ) indicates applications where some Interpump subsidiaries are also able to supply complete turnkey systems

JETTING Main products, companies, brands & websites

March 2021 – Total employees: 1,885

WATER

HYDRAULICS DESCRIPTION OF PRODUCTS Power Take-Offs, Cylinders, Hydraulic motors and gear pumps, Valves (including Directional Control Valves). Rubber hoses, flexible metal hoses, rigid pipes, pipe system design and connection flanges (also for non-hydraulics applications) Linear, Orthogonal and Planetary Reduction Gears for lightweight to very large-scale applications ADDRESSABLE MARKET (est.) > € 50 bn / yr MARKET FEATURES Large and efficient, no room for premium pricing Large share of smaller and/or very specialized players MARKET GROWTH DRIVERS Long-term growth proportional to world GDP, with strong YoY volatility. Very few examples of new or obsolete applications ACQUISITION OPPORTUNITIES Countless one-country or one-product companies that could immediately benefit from becoming part of a larger, international group INTERPUMP COMPETITIVE ADVANTAGES Product range and geographical production footprint allow Interpump to supply the largest OEMs in earth-moving, trucks, agriculture, lifting and handling machinery Diversification reduces YoY volatility; flexibility helps making the most from every market phase. Enlargement of product range through M&A increases visibility and creates cross-selling opportunities Manufacturing of key components such as Directional Control Valves ensures sticky and long-lasting business relationships 68% of Group sales and 62% of EBITDA in 2020 Business sector overview € 8888 8888

HYDRAULICS Application examples

EARTH-MOVING Excavators and mini-excavators Backhoe loaders Skid-steer loaders

TRUCK OUTFITTERS

Tipping trucks Trash collection - Sewer cleaning Firefighting - Snow plowing Towing - Car Carriers Crane trucks

TRUCK MANUFACTURERS Factory-fitted PTOs

AGRICULTURE Farm tractors Front loaders Harvesting machines

CONSTRUCTION Concrete mixing Telescopic handlers Conditioning/refrigeration/ventilation

INDUSTRIAL Machine tools Hydraulic power packs Automated assembly lines

LIFTING Mobile and fixed cranes Elevators Forklifts Conveyor belts

DRILLING / TUNNELING Tunnel-boring machines

HYDRAULICS Main products, companies, brands & websites

March 2021 – Total employees: 5,578

International presence (plants and subsidiaries)

Italy, USA, UK, France, Spain, Bulgaria, Slovakia, Mexico, Brazil, Chile, Peru, China, India, Australia, New Zealand, South Africa, UAE

Italy, USA, Canada, France, India, China, Korea, Australia

Italy, France, Germany, Romania, UK, South Africa, Sweden, Denmark, Austria, Poland, Spain, Netherlands, USA, China, Korea, Singapore, Brazil

Diversified across every dimension

Diversification of our business is the key to our resilience and low overall cyclicality

Both divisions have moved from the initial 100% concentration in one sector to a wide range of applications across different industries Hydraulics: ongoing enlargement of product range through acquisitions. Water-Jetting: expansion from the historical niche of high-pressure pumps into the wider world of fluid handling Optimal customer diversification. Largest account represents 1.6% of sales We sell our products all over the world, either through our increasing direct presence, or through distributors Most goods sold are produced locally or at least in the same currency. Our FX impact is mostly relative to the translation of financial statements. No currency hedging is necessary Stainless steel, aluminum, brass, cast iron, copper, and countless other alloys. Smart, forwardlooking buying policy keeps us safe from price volatility All classes of customers are serviced directly, through a local subsidiary, or through a distributor according to their size and importance: from the world's largest OEMs to small retail customers

Diversification by application field

2020 Total Turnover: Euro 1,294 million

Diversification of our business is the key to our resilience and low overall cyclicality

Diversification is a never-ending journey

Significant reduction of cyclicality and correlation achieved over the past decade

International Profile

Geographical breakdown of sales and costs (2020)

40+ companies acquired since the IPO in 1996 representing roughly 2/3 of each year's growth

Different purposes for acquisitions: completing the product range, reinforcing competitive positioning, enhancing distribution

Bolt-on acquisitions: no disruption in activity, immediate synergies

Soft integration policy: existing management, brands, IT systems are preserved

Reasonable multiples paid, based on EV/EBITDA ratio

Remarkable increase in EBITDA margins of acquired companies

Frequent acquisition of a control stake with agreements for acquiring the minority interest in a few years

Use of Interpump treasury shares as full or partial payment for some acquisitions

Thanks to Interpump's approach to M&A, the cost of acquisitions in terms of capital employed is comparable to the one of organic growth...

WATER JETTING

Acquisition & Diversification Timeline

Acquisition & Diversification Timeline HYDRAULICS
2021		DZ Trasmissioni right-angle drives White Drive Motors & Steering orbital hydraulic motors and steering units (closing expected Q4 2021)
2020		Transtecno reduction gears
2019		Hydra Dyne Tech rotary swivels and cylinders Reggiana Riduttori planetary reduction gears
2018		GS-Hydro World leader in non-welded piping systems (design, realization, and maintenance)
2017		Bristol Hose retail & on-site quick service Fluid System 80 hydraulic power packs
2016		Endeavour crimping machines - Tubiflex flexible metal hoses Tekno Tubi shaped rigid pipes - Mega Pacific distribution
2015		Walvoil Valves & DCVs Osper PTOs and cylinders
2013- 2014		Hydrocontrol directional Control Valves (DCV) IMM: flexible rubber hoses and fittings
2011- 2012		Galtech, MTC valves - Takarada PTOs American Mobile Power hydraulic tanks
2008- 2009		Contarini, Modenflex, Cover, Panni, Penta hydraulic cylinders
1999- 2001		Muncie: PTOs Hydroven hydraulic power packs
1997-1998

PZB & Hydrocar, Italian manufacturers of power take-offs (PTO).

Interpump's largest acquisition ever

World-class manufacturer of orbital motors and hydraulic and electro-hydraulic steering components. Dismissal imposed by Antitrust regulators in order to authorize acquisition of Eaton Hydraulics by Danfoss

Interpump approved as a buyer by the European Commission and by the U.S. Department of Justice on July 14

Closing expected in Q4 2021 following Antitrust clearance, a thorough carve-out process by Danfoss and the addition of a few product lines from Eaton

Three sizeable manufacturing locations in Hopkinsville KY (U.S.A.), Wroclaw (Poland), Parchim (Germany)

Complete range of two brand-new product lines for Interpump:

Orbital motors (high torque, low RPM, and compact design)
Steering units and steering valves

Significant synergies with the rest of our Hydraulics division, with complementary products and a very good customer/sector overlap

Expected FY2021 data
SALES	EUR 200 mn
EBITDA	EUR 45 mn

TOTAL AGREED PRICE (for a 100% stake)

EUR 230 mn + projected FY EBITDA at closing minus 5 mn

Signed June 2021

HYDRAULICS 2021 Acquisitions: DZ Trasmissioni

Signed Nov 2020 – Effective Jan 2021

Designer and manufacturer of right-angle gear drives

A new addition to Interpump's Power Transmission business area, complementing the offer in reduction gears

Headquartered in Bologna, Italy
Applications in industrial automation, logistics, agriculture, construction machinery…
Complete product range for all working conditions, up to 3,000 rpm and 15kW power

Shareholders, Stock Performance, Analyst Coverage

Updated 04/08/2020

Interpump Stock Performance

Total return to shareholders since the IPO (December 1996): 15.7% per year (assuming dividend reinvestment and participation to the '09 capital increase) 29.9% per year in the last 10 years

Share price	53.90
Market Capitalization	€ 5.87 bn
Performance 3 M:	+23.2%
Performance 1 Y:	+95.6%
Performance 2 Y:	+115.6%

1-yr trend: IP MI vs. FTSE STAR vs. FTSE MIB STAR FTSE MIB

Interpump became a constituent of the FTSE MIB index effective June 22, 2020

Analyst Coverage

Banca Akros	Paola Saglietti
Berenberg	Fraser Donlon
Equita SIM	Domenico Ghilotti
Exane BNP Paribas	Michele Baldelli
Intermonte	Carlo Maritano
Intesa Sanpaolo	Bruno Permutti
Kepler Cheuvreux	Matteo Bonizzoni
Mediobanca	Alessandro Tortora

Board of Directors	= independent
Fulvio Montipò	Chairman and CEO
Giovanni Tamburi	Deputy Chairman
Marcello Margotto	Lead Independent Director
Angelo Busani	Minority Director
Claudio Berretti
Antonia Di Bella
Fabio Marasi	Executive
Federica Menichetti
Stefania Petruccioli
Paola Tagliavini

Board of Statutory Auditors
Anna Maria Allievi	Chair
Roberta De Simone
Mario Tagliaferri

Chief Financial Officer

Carlo Banci

Independent Auditors

EY S.p.A.

Head of Investor Relations

Luca Mirabelli

Synthesis of results

Euro/million	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2019 ex-IFRS16	2020
Net Sales	424.5	342.9	424.9	472.3	527.2	556.5	672.0	894.9	922.8	1,086.6	1,279.2	1,368.6		1,294.4

EBITDA	87.0	46.9	74.1	94.7	105.8	105.2	136,1	180.3	198.5	248.6	288.5	317.9	302.4	294.1
Margin	20.5%	13.7%	17.4%	20.0%	20.1%	18.9%	20.3%	20.1%	21.5%	22.9%	22.6%	23.2%	22.1%	22.7%

EBIT	75.7	29.2	54.7	75.7	84.1	79.2	104.4	136.9	153.5	198.9	236.5	247.2		207.7
Margin	17.8%	8.5%	12.9%	16.0%	15.9%	14.3%	15.5%	15.3%	16.6%	18.3%	18.5%	18.1%		16.0%

Net Profit	40.2	14.0	27.4	42.6	53.2	44.1	57.7	118.3	94.5	135.7	173.2	180.6		152.7
Margin	9.5%	4.1%	6.4%	9.0%	10.1%	7.9%	8.6%	13.1%	10.2%	12.5%	13.5%	13.2%		11.8%

Free Cash flow	22.1	63.1	57.0	30.9	38.6	34.3	38.3	85.2	89.9	93.6	82.2	124.8		203.8

Net Fin. Debt	200.5	186.5	134.9	121.6	66.1	100.3	178.8	265.1	271.5	304.3	260.1	370.7	298.3	269.6
(net of treasury stock and including commitments for purchase of investments)
Shareholder's Equity	178.0	242.8	291.5	315.2	396.9	432.9	466.6	622.6	677.5	764.7	868.2	1,055.2		1.129.5

Debt/Equity	1.13	0.77	0.46	0.39	0.16	0.23	0.38	0.42	0.40	0.40	0.30	0.35	0.28	0.24

Continuing operations only

Appendix

Free Cash Flow (12 Months)
(euro/million)	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
Cash Flow from Operations	25.2	54.6	60.8	65.6	65.3	95.8	120.2	138.0	172.4	209.8	233.4	229.5
Adjustment for leases paid (IFRS16)											(15.3)	(18.2)
Change in Trade Working Capital	44.4	10.1	(21.8)	(12.3)	(1.7)	(23.7)	(6.6)	(12.2)	(30.8)	(60.9)	(20.9)	55.0
Capex	(9.2)	(8.7)	(11.8)	(15.8)	(29.8)	(34.1)	(28.9)	(36.5)	(47.8)	(68.2)	(73.7)	(61.4)
Other	2.7	1.0	3.7	3.6	0.5	0.3	0.5	0.7	(0.3)	1.5	1.3	(1.1)
Free Cash Flow	63.1	57.0	30.9	38.6	34.3	38.3	85.2	89.9	93.6	82.2	124.8	203.8

Procurement costs are well under control and do not reflect increases in raw material prices Long-term trend of purchases on sales reflects increases in efficiency and acquisition of more / less material-intensive businesses

The Manager in charge of preparing the company's financial reports declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

S.Ilario d'Enza, August 4, 2021

Carlo Banci

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