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Landi Renzo Earnings Release 2018

May 14, 2018

4295_er_2018-05-14_b7453ee2-a4e7-4397-b46b-cc124d822f8f.pdf

Earnings Release

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2018 Q1FINANCIAL RESULTS

Q1 2018 LRG shows strong performance improvement compared to Q1 2017

Due to the deconsolidation of Gas Distribution and Compressed Natural Gas and Sound sectors, Q1 2018 financial figures are notdirectly comparable with the same period of previous year

To provide a meaningful explanation of main difference, in the following of this document Q1 2018 results are compared only with Q1 2017 Automotive sector figures

2018 First Quarter – LRG has completed the Group Restructuring and started the sales development on Heavy Duty. SAFE-CEC has started the integration plan

LRG successfully completed the agreement with the Unions, both in Reggio Emilia and Vicenza and started the redundancy program, to be completed within mid-May. Thanks to the agreement the Group complete a workforce streamline with run-rate cost reduction in line with strategic plan forecast (from ~ 670 end of 2016 to ~ 490 end of May) Started the integration between SAFE and CEC with the appointment of the new Management TeamJan. 2018 Completed the transfer of the multi-valves and receptacle production from Lovato to Poland Launched the New LRG Sales organization across all sales departments to exploit all the synergies and take fully advantage of international presence, with a new team dedicated to Heavy Duty development Presented LRG new product portfolio innovation roadmap focus on CNG passenger cars and CNG/LNG Heavy Duty components and systemFeb. 2018 Started the transfer of production lines from Lovato to Reggio Emilia (to be completed by the end of April) Appointed new Group Head of Purchasing Launch the implementation of a World Class Manufacturing program in Reggio Emilia, in line with Strategic Plan Implementation Program Starting sales of a new pressure reducer for Heavy Duty Started a new collaboration for the development of Hydrogen System Solution Mar. 2018

Q1 2018 P&L highlight results are in line with the strategic plan with strong increase on EBITDA and EBIT

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(1): 2017 Q1 P&L included sectors that were out of consolidation perimeter (Gas Distribution and Compressed Natural Gas) or no longer present in 2018 (Sound)

2017 Q1 "Automotive" figures refer to the same perimeter of 2018 Q1

Highlights

  • • Automotive sector revenues increased by 1,2M€ (+2,9%), mainly on AM
  • • Automotive EBITDA Adj. reaches 5,4M€ with a growth of 77,0%, thanks to the improvement of gross margin (volumes and direct cost optimization) and to the reduction of fixed cost. It is important to outline that only a part of efficiencies has been reached in Q1
  • • EBITDA is impacted by extraordinary expenses to support the last phase of the industrial turnaround (agreement with union completed in January 2018 with redundancies from end of January to end of March)
  • • EBIT positively impacted by fixed cost reduction and by the AVL deal (decrease in depreciation)
  • • Capital Loss from SAFE&CEC of 0,9M€, with integration between SAFE and CEC started in Q1

Both Automotive and Gas distribution show improving performance. Positive Automotive EBT

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2018 Q1 Adjusted EBITDA improvement thanks to volume and the first effect of the industrial turnaround

Revenue mix AM/OEM in line with 2017 data, with increase of the "internationalization of the revenues"

AUTOMOTIVE SECTOR

•Italy is stable, while America, Asia and Rest of the World increase

2018 Q1 Balance Sheet shows an optimized working capital and a reduction of funds and severance packages

M€, %

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•

  • stock of semi-finished and finished product to manage the footprint re-organization (e.g. organization of the transfer of Lovato line to Poland and Reggio Emilia)
  • • Net Financial Position increased by 4,8M€ mainly due to the payment of 3,0M€ of severance packages

2018 Q1 compared to 2017 shows a strong optimization, even if it is impacted by the extraordinary activities completed in April on Group footprint optimization

M€, % on rolling revenues 12M

Re
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calculation performed notconsidering Sound sector and Gas Distribution and Compressed Natural Gas, not included in Balance Sheet at 31.12.2017

NFP, net of extraordinary cash-out, is in line with 2017. Working capital is impacted by the inventory necessary to back-up the transfer of the lines

Short- and long-term debts and bond are inclusive of amortized cost effect

•

SAFE and CEC contribute equally to Q1 2018 consolidated revenues of 9,9M€, and Adj. EBITDA in line forecasted results

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2018 Outlook remains confirmed

2018 revenue outlook is expected to confirm Strategic Plan guidelines

•

• 2018 Adj. Ebitda outlook is expected to achieve ~25M€(~ +130%) in line with 2018-2022 Strategic Plan, thanks to cost reduction implementation

  • • 2018 revenue outlook is expected to increase compared to 2017 pro-forma results
  • • 2018 Adj. Ebitda is expected to be in line with M&A Strategic Plan guidelines

12

Landi Renzo - Company profile (11/05/2018)

BOARD OF DIRECTORS

TOP MANAGERS

INVESTOR RELATIONS

Investor Relations Contacts:

Paolo CilloniTel: +39 0522 9433 E-mail: [email protected]

SHARE INFORMATION

N. of shares outstanding: 112.500.000

Price as of 11/05/18 € 1.608

Capitalization: € 180.9 mln

FTSE Italia STAR

STOCK VS MARKET

LandiRenzo –FTSE MIB

CONSOLIDATED P&L

(
tho
nds
of
Eur
o)
usa
INC
OM
E S
TA
TE
ME
NT		 31/
03/
201
8		 31/
03/
7 (
201
*)
Rev
from
les
and
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enu
es
sa
se
es		 42
037
,		 46
774
,
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wh
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with
late
d p
arti
tra
nsa
ns
re
es		 27
7		 204
Oth
d in
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eve
nue
an
com
e		 102 250
Co
of
teri
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and
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raw
ma
, co
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s		 20
145
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,		 22
550
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,
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ts
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sse		 -9,
575		 12,
283
-
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wh
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with
late
d p
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re
es		 -52
6		 804
-
Pe
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st
rso
nne		 218
-7,		 9,
736
-
Pro
vis
ion
isio
n fo
r ba
d d
ebt
nd
oth
atin
s, p
rov
s a
er o
per
g e
xpe
nse
s		 -66
8		 708
-
Gro
Op
tin
Pro
fit
ss
era
g		 4,
533		 1,
747
Am
orti
ion
dep
iati
and
im
irm
zat
ent
rec
on
pa
,		 -2,
654		 4,
007
-
Ne
t O
ing
Pr
ofit
rat
pe		 1,
879		 2,
260
-
Fin
ial
inc
anc
om
e		 26 18
Fin
ial
anc
exp
ens
es		 -91
9		 1,
059
-
Exc
han
ins
(
los
)
ge
ga
ses		 -24
5		 12
Ga
in (
los
s) o
ity
inve
alu
ed
usi
the
uity
tho
d
stm
ent
n e
qu
s v
ng
eq
me		 -87
3		 78
fit (
ss)
Pro
Lo
be
for
e ta
x		 -13
2		 3,
211
-
Cu
nd
def
d ta
nt a
rre
erre
xes		 -1,
043		 250
Ne
rof
it (
los
s)
for
th
e G
nd
mi
rity
int
inc
lud
ing
t p
sts
rou
p a
no
ere
:
,		 -1,
175		 2,
961
-
Min
orit
inte
ts
y
res		 -52 24
Gr
Ne
t pr
ofit
(
los
s)
for
the
oup		 -1,
123		 2,
985
-
Ba
sic
rnin
(
los
s) p
har
e (c
alc
ula
ted
11
2,
500
000
sh
s)
ea
gs
er s
on
are
,		 -0.0
100		 0.0
265
-
Dil
d e
ing
s (
los
s) p
har
ute
arn
er s
e		 -0.0
100		 0.0
265
-

(*) The comparative figure was re-presented in accordance with the classification adopted on 31 March 2018

CONSOLIDATED BALANCE SHEET

(
tho
nds
of
Eu
ro)
usa
AS
SE
TS		 31/
03/
20
18		 31/
12/
20
17		 31/
03/
20
17
No
t a
ts
n-c
urr
en
sse
Lan
d, p
erty
lan
t, m
ach
ine
nd
uip
nt
rop
, p
ry a
eq
me		 13,
48
9		 14,
583		 29
262
,
De
vel
ndi
nt e
ture
op
me
xpe		 4,
904		 40
1
5,		 8,
210
Go
odw
ill		 30
094
,		 30
094
,		 30
094
,
Oth
inta
ible
ith
fini
sef
ul li
set
te u
er
ng
as
s w
ves		 15,
35
6		 15,
76
9		 19,
763
Eq
uity
inv
lue
d u
sin
the
uity
tho
d
est
nts
me
va
g
eq
me		 23
42
8
,		 24
30
1
,		 121
Oth
nt f
ina
nci
al a
ts
er
non
-cu
rre
sse		 44
5		 42
8		 447
Oth
nt a
ts
er
non
-cu
rre
sse		 4,
56
0		 4,
56
0
De
fer
red
tax
set
as
s		 7,
647		 8,
016		 7,
268
To
tal
t a
ts
no
n-c
urr
en
sse		 99
923
,		 103
152
,		 95
165
,
Cu
nt
ets
rre
ass
Tra
de
eiv
ab
les
rec		 28
47
8
,		 27
44
3
,		 33
213
,
Tra
de
eiv
abl
late
d p
arti
rec
es
- re
es		 1,
908		 1,
675		 1,
738
Inve
ries
nto		 38
822
,		 36
562
,		 49
719
,
Co
ork
s in
ntra
ct w
pr
og
res
s		 714
Oth
eiv
ab
les
d c
nt a
ts
er
rec
an
urre
sse		 8,
918		 52
9
7,		 11,
092
Ca
sh
and
sh
uiv
ale
nts
ca
eq		 18,
670		 17,
77
9		 20
997
,
To
tal
nt
ets
cu
rre
ass		 96
79
6
,		 90
988
,		 117
473
,
TO
TA
L A
SS
ET
S		 196
71
9
,		 194
140
,		 212
638
,

CONSOLIDATED BALANCE SHEET

31/
03/
20
18		 31/
12/
20
17		 31/
03/
20
17
11,
25
0		 11,
250		 11,
25
0
45
474
,		 41
983
,		 43
145
,
-1,
123		 4,
139		 2,
985
-
55
60
1
,		 57
372
,		 51
41
0
,
-67
4		 669
-		 28
7
-
54
927
,		 56
703
,		 51
123
,
26
813		 26
906		 32
836
,
29
790		 29
308		 32
42
6
,
9,
045		 11,
89
1		 9,
126
2,
027		 2,
446		 2,
940
45
7		 423 504
68
132
,		 70
974
,		 832
77
,
13,
04
9		 7,
74
1		 25
187
,
2,
792		 2,
792		 42
5
44
44
6
,		 43
165
,		 41
80
9
,
4,
722		 4,
664		 4,
73
9
3,
26
5		 3,
003		 2,
494
5,
38
6		 5,
098		 9,
02
9
73
660
,		 66
463
,		 83
683
,
196
71
9
,		 194
140
,		 212
638
,
,
,		 ,
,

Disclaimer

This presentation has been prepared by Landi Renzo S.p.A. for information purposes only and for use in presentations of the Group's results and strategies.

For further details on the Landi Renzo Group, reference should be made to publicly available information, including theQuarterly Reports and the Annual Reports.

Statements contained in this presentation, particularly the ones regarding any Landi Renzo possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties.

Any reference to past performance of the Landi Renzo shall not be taken as an indication of future performance.

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