Landi Renzo

Earnings Release • Mar 15, 2021

12M 2020 Financial Results

Cavriago, 16 March 2021

Disclaimer

This document has been prepared by Landi Renzo 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 presentation contains forward looking statements regarding future events and future results of Landi Renzo S.p.A. (the "Company") that are based on the current expectations, estimates, forecasts and projections about the industries in which the Company operates, and on the beliefs and assumptions of the management of the Company. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management, competition, changes in business strategy and the acquisition and disposition of assets are forward looking in nature. Words such as 'expects', 'anticipates', 'scenario', 'outlook', 'targets', ' goals', 'projects', 'intends', 'plans', 'believes', 'seeks', 'estimates', as well as any variation of such words and similar expressions, are intended to identify such forward looking statements. Those forward looking statements are only assumptions and are subject to risks, uncertainties and assumptions that a re difficult to predict because they relate to events and depend upon circumstances that will occur in the future. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward looking statements. Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward-looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever. This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations

Full year results significantly affected by Covid-19 global pandemic in the automotive business, whereas SAFE&CEC continues to grow

• Revenues down by 25,7% YoY impacted by the reduction in H1 (-41,3%) with a stronger H2
• Adj. EBITDA remains positive also thanks to a further reduction of fixed costs
• Investments increased to 11,6M€ especially to keep pursuing LRG strategic product development, mainly in Mid & Heavy Duty applications (CNG, LNG and Hydrogen). Reduction expected in 2021
• SAFE&CEC displays solid figures with the value of production grown by 8,3%, positive Adj. EBITDA and improved capital management

2020 results

Landi Renzo and SAFE&CEC profitability impacted by Covid, yet the Group continued investing for the future

4

Full year results show a positive EBITDA despite difficult market conditions

M€; %	2020 FY	2019 FY	delta	delta %
Revenues	142,5	191,9	-49,4	-25,7%
Adj. EBITDA	8,0	26,3	-18,3	-69,5%
% on rev.	5,6%	13,7%
EBITDA	6,7	24,7	-18,0	-73,1%
% on rev.	4,7%	12,9%
EBIT	-5,5	12,9	-18,4	n.a.
% on rev.	-3,9%	6,7%
EBT	-11,4	8,5	-19,9	n.a.
% on rev.	-8,0%	4,4%
Net Result	-7,9	6,0	-13,9	n.a.

Highlights

• Revenues impacted by the Covid-19 pandemic, decreased by 25,7% YoY, affected by the decline of sales in H1 (-41,3% vs H1 2019), with a stronger performance in H2
• Adj. EBITDA reduction due to the contraction in sales and a less favorable sales mix (especially AM), partially offset by the control and reduction of fixed costs
• EBITDA remains positive, despite non-recurring expenses including, among others, Covid-19 health and safety measures
• EBIT is negative by 5,5M€ after the amortization of 12,2 M€, mostly related to R&D activities

Automotive

Cost control initiatives mitigate the consequences of the shrinking business

Highlights

• Adj. EBITDA affected by reduced volumes and a change in sales mix, with an increase of OEM share over total sales and price pressure in the AM channel
• Positive effect of cost-control initiatives, linked to a tight control of cost and a leaner organization
• Working Capital, significantly decreased in Q4 2020, benefits from inventory reduction and credit collection
• The reduction of turnover in 2020 displayed its effect, which will be normalized during 2021

Automotive

NFP impacted by the increase of working capital and by the investments in R&D to support new products development for the HD segment

M€

(1) Short and long terms debt are inclusive of amortized cost effect (2) Accrued interests included

Full year results show a revenues growth and positive EBITDA despite difficult market conditions

M€; %	2020 FY	2019 FY	delta	delta %
Value of Production	79,5	73,4	6,1	8,3%
Adj. EBITDA	5,1	6,1	-1,0	-16,8%
% on Value of Product.	6,4%	8,3%
Net Result	-0,2	0,2	-0,4	n.a.
	2020	2019 FY
Working Capital	12,4	15,2
% on Value of Product.	15,6%	20,7%

Highlights

• 2020 consolidated value of production reached 79,5M€ confirming the growing trend of the Group (8,3% YoY), mainly thanks to growth in the US and in North Africa, while Europe was stable and LatAm strongly declined
• Adj. EBITDA has been affected by the shutdown of activities due to the pandemic (that impacted on the profitability of some "jumbo-orders" in Italy) and by the decrease of sales of S&SP (lower use of compressors because of Covid)
• Net Result is just below break-even level as a consequence of the above
• FY Working Capital improves compared to Dec. 31, 2019 from 20,7% to 15,6% of rolling Value of Production, mainly due to the improved credit collection activity and controlled inventory management

Infrastructure

As the world asks for more sustainable transportation, we provide clean energy solutions along the full value chain, from RNG and Hydrogen production to engine applications

M&HD

• Full portfolio of CNG&LNG components & solution and launch of new solution for H2
• Different agreements signed with as a basis for future development
• Continue & strengthen collaboration with leading OEMs
• Market growing worldwide, start increasing revenues in 2021, exponential growth from 2022

Passenger cars & light duty vehicles

• CNG as unique solution to reduce emission in many geography, from Russia, to India, LatAm and North Africa
• CNG&LPG as cost advantage solution, even more appreciated considering the economic situation and the need to use more cars
• Double digit market recovery in 2021

CNG

• Strengthen leading position in a market that is growing double digit
• New long term collaboration with big Oil&Gas companies entering transportation

Biomethane/RNG

• 10% of total revenues, with exponential growth in the US
• Awarded 1,1M€ order for one of the largest application in CA

Hydrogen

• New 700Bar compressor under testing, with solutions from production to distribution, and with advanced opportunities for M&A. High, growing demand
• As of now SAFE&CEC has historically the highest order portfolio, with expectation for overall double digit market growth in the next years

A well diversified international Group that provides fundamental solutions for the energy transition

Many achievements that will positively impact 2021 and display long term positive effect

Heavy Duty	• Our LNG pressure regulator successfully passed the winter test for a major Chinese HD OEM, starting sales expected by the end of 2021
	• LRG was awarded the supply of a key CNG engine component by a major European Heavy Duty OEM
	• LRG and Mahindra signed a MoU for the development of a CNG-powered tractor engine with further agreement expected asap
	• Landi Renzo USA signed agreement with SolGas for the supply of CNG Mid Duty
Hydrogen	• Strengthened the relationship with Cummins-Hydrogenics on manifold and other components
	• Started collaborating with Punch, AVL, IIA and TPER for the development of ICE H bus, with LRG providing all the H system 2 2
H 2	• Several ongoing negotiations with leading OEMs for new partnerships on both FCEV and H ICE technologies 2
Automotive	• AM is already growing compared to Q1, with strong recovery expected on all markets, from LatAm to Russia. Forecast on OEMs is higher compared to 2020 on all technologies (LPG/CNG)
	• Awarded an important tender in Egypt (as a Group result)
	• Ongoing new negotiations in Russia for very strategic projects
Infrastructure	• Awarded very important tenders in Egypt and Russia
	• Growing market in Biomethane/RNG both in Europe and in the US
	• Largest ever order portfolio, with expected increase in the next months. Growing demand for H applications 2

FY 2021 guidance

Appendix

Landi Renzo - Company profile (15/03/2021)

BOARD OF DIRECTORS

Stefano Landi – Chairman Giovannina Domenichini – Honorary Chairman Cristiano Musi - CEO Angelo Iori – Director Silvia Landi - Director Dario Melpignano – Independent Director Sara Fornasiero - Independent Director Vincenzo Russi – Independent Director Paolo Ferrero - Director

SHAREHOLDING

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts:

Paolo Cilloni Tel: +39 0522 9433 E-mail: ir@landi.it www.landirenzogroup.com

SHARE INFORMATION

FTSE Italia STAR

N. of shares outstanding: 112.500.000

Price as of 15/03/2021 €1.135

CONSOLIDATED P&L

(thousands of Euro)
CONSOLIDATED INCOME STATEMENT	31/12/2020	31/12/2019
Revenues from sales and services	142.455	191.852
Other revenue and income	313	601
Cost of raw materials, consumables and goods and change in inventories	-84.212	-100.510
Costs for services and use of third party assets	-27.844	-38.049
Personnel expenses	-22.398	-26.898
Accruals, impairment losses and other operating expenses	-1.662	-2.288
Gross Operating Profit	6.652	24.708
Amortization, depreciation and impairment losses	-12.193	-11.766
Net Operating Profit	-5.541	12.942
Financial income	298	117
Financial expenses	-3.310	-4.112
Exchange gains (losses)	-2.827	-718
Gains (Losses) on joint venture valuate using the equity method	-11	285
Profit (Loss) before tax	-11.391	8.514
Taxes	3.541	-2.532
Net profit (loss) for the Group and minority interests, including:	-7.850	5.982
Minority interests	-188	-66
Net profit (loss) for the Group	-7.662	6.048
Basic earnings (loss) per share (calculated on 112,500,000 shares)	-0,0681	0,0538
Diluted earnings (loss) per share	-0,0681	0,0538

CONSOLIDATED BALANCE SHEET

31/12/2020	31/12/2019
13.212	11.578
9.506	8.228
30.094	30.094
10.860	12.536
4.975	6.402
22.509	23.530
921	334
2.850	3.420
12.201	8.704
107.128	104.826
39.353	40.545
42.009	39.774
6.712	7.337
2.801	2.801
21.914	22.650
112.789	113.107
219.917	217.933

CONSOLIDATED BALANCE SHEET

(thousands of Euro)
SHAREHOLDERS' EQUITY AND LIABILITIES	31/12/2020	31/12/2019
Shareholders' Equity
Share capital	11.250	11.250
Other reserves	53.199	49.367
Profit (loss) of the period	-7.662	6.048
Total Shareholders' Equity of the Group	56.787	66.665
Minority interests	-473	-332
TOTAL SHAREHOLDERS' EQUITY	56.314	66.333
Non-current liabilities
Non-current bank loans	68.181	50.991
Other non-current financial liabilities	408	0
Non-current liabilities for right-of-use	2.871	4.535
Provisions for risks and charges	2.897	3.609
Defined benefit plans for employees	1.556	1.630
Deferred tax liabilities	297	407
Liabilities for derivative financial instruments	458	30
Total non-current liabilities	76.668	61.202
Current liabilities
Bank overdrafts and short-term loans	23.108	29.460
Other current financial liabilities	378	210
Current liabilities for right-of-use	2.228	1.992
Trade payables	53.509	51.935
Tax liabilities	2.677	2.134
Other current liabilities	5.035	4.667
Total current liabilities	86.935	90.398
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	219.917	217.933