Marzocchi Pompe

Investor Presentation • Apr 8, 2021

Milan, April 8, 2021

Company at a Glance

• FY 2020 Results
• Outlook
• Market & Competitive Positioning
• Appendix:

Business Overview, History & Financials

Marzocchi Pompe at a Glance

	Marzocchi Pompe at a Glance
Company	Marzocchi Pompe is a leading world player in the design, motors, which are used in sectors like: industrial (textile	production and marketing of high machines, machine tools, plastic injection	performance external gear pumps and machines, medical equipment,
	energy, etc.), mobile (agricultural machines, forklift trucks,	etc.) and automotive (transmissions,	power steering, attitude adjusters,).
Key Success Factors	MP boasts a wide range of products well known for its needs in terms of displacements and interfacing. The particularly suitable for automotive applications. A key customer demand for high performance products.	high performance and great reliability, Company is focused on the production of feature is the continuous investment	covering most of the market very small displacement pumps, in R&D aimed at satisfying the
	The production of the historical brand «Marzocchi Pompe»	is entirely carried out in Italy, in two	locations nearby Bologna: Zola
	Predosa and Casalecchio di Reno, through an extremely	verticalized process that allows to keep the	product quality under control.
	€/000 2017 2018 2019 2020 Net Sales 38.638 42.089 39.171 34.143	2020 Revenues by Business Line	2020 Revenues by Geographic Area
Main Consolidated	EBITDA 6.798 7.515 5.422 4.129 EBITDA Margin 17,2% 17,4% 14,4% 12,2% Net Income 1.956 2.926 203 229 Net Equity 12.796 10.984 18.676 18.444
Financials	Net Financial Position 14.437 19.217 12.535 9.252 • Nearly 1,0 mln pumps produced • More than 800 active clients 2020 KPI • Average employees number: 243

Top Management & Shareholders

FY 2020 Results

FY 2020 Results show strong growth in H2 back to pre-Covid levels

NET SALES AT EURO 34 MLN (-12.8% YoY), WITH H2-2020 UP 19% VS. H1

STRONG GROWTH IN H2-2020 WAS DRIVEN BY AUTOMOTIVE SALES, UP 56% VS. H1 AND 40% VS. H2-2019, EMPOWERED BY THE INDUSTRIAL RECOVERY ESPECIALLY IN THE NORTH AMERICA MARKET. CORE BUSINESS SALES PICKED UP NICELY AS WELL, SHOWING A 6% INCREASE IN H2 VS. H1. FY-2020 OVERALL SALES DECREASE IS HOWEVER LOWER THAN THE INDUSTRY'S, WITNESSING ONGOING ORDER INTAKE BY MARZOCCHI POMPE THANKS TO ITS STRONG BRAND REPUTATION AND TECHNOLOGICAL EDGE.

EBITDA MARGIN AT 12.2% (vs 14.4% in 2019), GREATLY RESILIENT IN THE PANDEMIC YEAR

IN H2-2020 EBITDA JUMPED TO EURO 2.9 MLN, FROM EURO 1.2 MLN IN H1 (+128%), WITH A MARGIN OF 16.1% CLOSE TO MARZOCCHI POMPE'S ALL-TIME HIGHS OF 17%.

NET DEBT DOWN 26% YoY TO EUR 9.3 THANKS TO CASH GENERATION

CAPEX TOPPED EURO 1.6 MLN OR 5% OF SALES, WITNESSING MARZOCCHI POMPE'S RELENTLESS DEVELOPMENT PROGRAMS EVEN IN SUCH A DIFFICULT YEAR FOR THE INDUSTRY. TIGHT CONTROL OVER INVENTORIES AND PAYMENT TERMS (NOT SUFFERING DELAYS) ALLOW FOR CONSISTENT CASH GENERATION (EURO 3.3 MLN NET). DISTINCTIVE KNOW-HOW IN MANUFACTURING TAILOR MADE PRODUCTS BASED ON CUSTOMER NEEDS IS WITNESSED BY THE RECENT AWARD FROM A WORLD LEADER IN HEAVY AUTOMOTIVE TO DEVELOP AN INNOVATIVE ELIKA PUMP IN 3Y TIME. Note: 2019 results are net of the extraordinary "take-or-pay" contribution of €0.8 million, invoiced for the clause relating to the failure to reach the minimum quantities foreseen in the contract with the main automotive customer; this contribution in 2020 would have been €0.6 million, but was not charged due to the national lockdowns, which constituted a force majeure event.

MARZOCCHI POMPE CONFIRMS ITS MARKET LEADERSHIP IN HIGH-PERFORMANCE PRODUCTS

Net Sales at € 34m, EBITDA margin at 12.2% thanks to H2 recovery

recovery

Note: 2019 results are net of the extraordinary "take-or-pay" contribution of €0.8 million, invoiced for the clause relating to the failure to reach the minimum quantities foreseen in the contract with the main automotive customer; this contribution in 2020 would have been €0.6 million, but was not charged due to the national lockdowns, which constituted a force majeure event.

Revenues and EBITDA Breakdown in H1 and H2 2020

market

brand

Note: 2019 results are net of the extraordinary "take-or-pay" contribution of €0.8 million, invoiced for the clause relating to the failure to reach the minimum quantities foreseen in the contract with the main automotive customer; this contribution in 2020 would have been €0.6 million, but was not charged due to the national lockdowns, which constituted a force majeure event.

Revenue Breakdown in H1 and H2 2020 by Market & Geographic Area

• Revenues by Core market segments (Industrial, Mobile and Sales Network), slid to 70% in 2020 vs 75% in 2019, at Euro 24 million (-18%), after +6.4% sales growth in H2
• Weight of Automotive segment rose to 30% vs 25% in 2019 strongly benefiting from recovery in H2 mainly in the North America market where the economic upswing was steeper than in Europe Core

Source: consolidated financial statements

EBIT at loss for € 1.1 mln (€ 0.9 mln in H1), Net Income at € 0.2 mln

Source: consolidated financial statements

• EBIT turned at loss for Euro 1.1 mln in FY due to -€0.9 million in H1, hit by the effects of pandemic lockdowns throughout the world • Sales recovery coupled with ongoing actions to improve operating efficiency, led to a sharp improvement in H2 which reported -€0.2 mln
• It's worth noticing that Marzocchi Pompe made no recourse to any of the extraordinary supporting measures provided for by the Italian legislator to help companies in distress such as: - suspension of the depreciation of assets; - the revaluation of corporate assets and equity investments • Net Income remained overall flat at Euro 0.23 million vs. Euro 0.203 million in 2019

Net Financial Position significantly improved at € 9.3 mln

Net Financial Position

Short Term Net Financial Debt	(637)	2,453

Source: consolidated financial statements

• Net Financial Position improved by 26% at year-end to Euro 9.3 million from Euro 12.5 million at end-2019, mainly thanks to the Company's high cash generation capability (Euro 3.3 million net) • NFP also accounted for Capex of Euro 1.6

• million (corresponding to 5% of Revenues, in line with Industrial Plan) and Euro 1.1 million increase in Working Capital which shows tight control over Inventories and payment terms that were not suffering any delay throughout the year

• ON 30TH MARCH 2021 MARZOCCHI POMPE BOARD OF DIRECTORS PROPOSED THE DISTRIBUTION OF AN ORDINARY DIVIDEND OF EURO 6 CENTS PER SHARE, FOR A TOTAL DIVIDEND AMOUNT OF EURO 392.325 TO BE COVERED BY EXTRAORDINARY RESERVE IF THE SHAREHOLDERS' MEETING DUE ON 30TH APRIL 2021 APPROVES ITS DISTRIBUTION, THE DIVIDEND WILL BE PAID AS FROM 12TH MAY 2021, AFTER DETACHMENT OF THE COUPON ON 10TH MAY 2021 THE DATE OF ENTITLEMENT TO PAYMENT (RECORD DATE) IS SET AT 11TH MAY 2021

Outlook

• THE FIRST HALF OF 2020 WAS HEAVILY HIT BY SPREAD OF THE COVID-19 PANDEMIC: MARZOCCHI POMPE CONTINUED ITS PRODUCTION ON A REGULAR BASIS UNTIL 22ND MARCH, WHEN THE ITALIAN GOVERNMENT IMPOSED THE LOCKDOWN WHICH EXPIRED ON 13TH APRIL.
• IN AN EXTRAORDINARILY NEGATIVE GLOBAL SCENARIO, MARZOCCHI POMPE COULD RELY ON ITS LEADING TECHNOLOGICAL KNOW-HOW, ITS EFFECTIVE COMMERCIAL EDGE AND ITS VERY STRONG TEAM SPIRIT, WHICH TOGETHER WITH ITS ENVIABLY HEALTHY FINANCIAL SITUATION ALLOWED THE COMPANY TO PROMPLY TAKE ADVANTAGE OF THE ECONOMIC ACTIVITY UPSWING IN THE SECOND HALF OF THE YEAR. DESPITE ALL MARKET DIFFICULTIES, MARZOCCHI POMPE IS INTENSIFYING ITS COMMERCIAL EFFORTS TO REACH NEW
• TECHNOLOGICAL AGREEMENTS TARGETING NEW CUSTOMERS: ORDER INTAKE NEVER REALLY STOPPED AND RECOVERY IS GAINING PACE IN THE FIRST MONTHS OF 2021. MOREOVER, ITS SUCCESS IS WITNESSED BY THE RECENT IMPORTANT AWARD ACHIEVED WITH A WORLD LEADER IN THE HEAVY AUTOMOTIVE INDUSTRY FOR THE PRODUCTION OF AN INNOVATIVE ELIKA PUMP AS FROM 2023. IN 2020 MARZOCCHI POMPE NOT ONLY HAS BEEN ABLE TO MAINTAIN ITS LEADERSHIP POSITION ON THE MARKET, IT ALSO TOOK AN IMPORTANT STEP FORWARD IN ONE OF THE MOST PROMISING MARKETS WITH THE SET-UP OF THE JV "MARZOCCHI SYMBRIDGE HYDRAULIC (SHANGAI) CO. LTD", WITH THE AIM OF INCREASING COMMERCIAL PENETRATION ESPECIALLY OF CORE BUSINESS PRODUCTS.

Forecast for the Period 2021 – 2023 SIGNIFICANT DEVELOPMENT OF TURNOVER WITH A CAGR OF 6-8% BY 2023, RESULTING FROM

ORGANIC GROWTH, IN LINE WITH THE STRATEGIC GUIDELINES STATED IN THE IPO.

• SALES GROWTH WILL BE DRIVEN BY THE FLAGSHIP PRODUCT ELIKA (SEE FOLLOWING SLIDE) AND THE CONSOLIDATION OF THE STRONG GROWTH IN THE US AND CHINA MARKETS ALREADY RECORDED IN THE LAST MONTHS OF 2020 AND EARLY 2021, WHICH ALSO BENEFITS FROM THE EXCELLENT REPUTATION OF THE MARZOCCHI BRAND AT INTERNATIONAL LEVEL. – THE GROWTH PATH OF MARZOCCHI POMPE DOES NOT INCLUDE ANY EXTRAORDINARY FINANCIAL OPERATIONS, EXCEPT FOR THE OPPORTUNISTIC EVALUATION OF THE DEALS THAT MAY ARISE, ALSO CONSIDERING THE HIGH DYNAMISM OF THE COMPONENTS INDUSTRY ON THE GLOBAL MARKET.
• RETURN TO EXCELLENT LEVELS OF PROFITABILITY, WITH AN EBITDA MARGIN OF AROUND 17-18%
• ACHIEVEMENT OF AN OPTIMAL LEVEL OF FINANCIAL LEVERAGE (TOTAL DEBT/EBITDA 1-1.5X) AND

MAINTENANCE OF A DEBT RATIO BELOW 50% OF SHAREHOLDERS' EQUITY

CONFIRMATION OF THE DIVIDEND POLICY ALREADY ADOPTED IN 2019

• IN 2019 THE NEW ELIKA DEPARTMENT HAD BEEN COMPLETED WITH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE'S FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH THE PLANNED RANGE EXTENSION STARTED AT THE END OF 2019 AND IS EXPECTED TO RAMP UP IN 2020 AND TO ACCELERATE IN FOLLOWING YEARS IN BACK-TO-NORMAL MARKET CONDITIONS
• EFFICIENCY

productivity of our production sites." declared Gabriele Bonfiglioli, CEO of Marzocchi Pompe.

Market & Competitive Positioning

Hydraulic market – geographic breakdown Hydraulic end - use markets' forecasts The Fluid Power market is made up by the hydraulic segment and the pneumatic segment. In Asia, Europe and USA the Fluid Power home1 market went from Euro 25,7 billions in 2000, to around Euro 43,6 billions in 2017, of which Euro 31,2 billion (72%) stemming from the hydraulic sector, and Euro 12,3 billion (28%) from the pneumatic sector (Source: ISC2 – World Fluid Power Summit 2017 e Statistics Results 2017). In Italy, the Fluid Power market in 2017 was estimated to be around Euro 2,2 billion, of which Euro 1,4 billion (63%) stemming from the hydraulic sector, and Euro 0,8 billion (37%) from the pneumatic sector .(Source: Assofluid – Il Fluid Power in Italia, Rapporto di settore 2017). Below is given a geographic breakdown of the home hydraulic market, estimated by ISC, and the weighted growth forecast for the hydraulic end-use markets, published by Oxford Economics. Annual percentage changes 2017 2018f 2019f 2020f 2021f 2022f Average '18-'22 North America 7,6% 5,2% 3,8% 2,3% 1,9% 2,2% 3,1% South America 3,8% 11,4% 3,3% 2,7% 2,6% 2,8% 4,6% Europe 7,3% 5,3% 2,1% 1,6% 1,2% 1,0% 2,2% Asia 8,3% 3,5% 3,1% 2,3% 2,8% 2,8% 2,9% Middle East & Africa 6,0% 1,7% 3,6% 3,0% 3,4% 3,4% 3,0% World 8,2% 4,6% 3,1% 2,2% 2,2% 2,3% 2,9%

Weighted growth forecasts for hydraulic end-use markets

covered by companies which are part of the organization. For statistic's sake, the country where the product was built is irrelevant, while the country where the product was sold is considered.

most of the times.

Focus on hydraulic pumps' market

Within the Hydraulic home1 market, the pumps' segment is estimated by ISC to be around Euro 5,4 billion in 2017 (17%), of which Euro 3,2 billion (10%) coming from the reciprocating pumps' segment (axial and radial piston pumps) and Euro 2,2 billion (7%) from the rotary pumps' segment (gear, vane, orbital, screw and other types of pumps). Focusing on the rotary pumps sector, in which MP operates, Asia stands out as the main marketplace with around Euro 1 billion (46%) activity, followed by USA, with Euro 0,8 billion (36%), and Europe with Euro 0,4 billion (18%).

other types

covered by companies which are part of the organization. For statistic's sake, the country where the product was built is irrelevant, while the country where the product was sold is considered.

most of the times.

Competitive positioning

Competitive positioning
Characteristic Company	Quality & Performance	Customer service	Gear Pumps Range	Fluid Power Range	Customization	Competitiveness vs Price	Quality vs Price
Marzocchi Pompe
Bosch Rexroth
Bucher
Casappa
Concentric
Galtech/Interpump
Hema / DB
HPI / JTech
Parker
Roquet
Salami
Turolla/Sauer Danfoss
Settima
Vivoil
Source: Marzocchi Pompe SpA	management estimates		Legend:	High	Medium - high	Medium	Low

Leadership in external gear pumps market

Appendix

MP core business: manufacturing of external gear pumps and motors

• The pumps have the function of transferring the fluid from a tank to an actuator within an oil-hydraulic circuit. (for example a cylinder that drives the shovel of an excavator). This transfer from the suction circuit to the delivery circuit occurs through the rotation of the two toothed wheels (the so-called "gears") inserted in the pump body, which is realized through the coupling with an endothermic motor or an electric motor. The oil that is transferred is located between the teeth compartments of the gear wheels and the pump body. The pressure that is created in the flow circuit downstream of the pump is proportional to the load determined by use. • MP produces external gear pumps with straight teeth with an involute profile and helical rotor pumps with a conjugate profile. Both are part of the group of pumps called "volumetric", to which vane pumps, internal gear pumps and screw pumps also belong. The piston pumps also belong to the same category, which differ from the previous ones for the alternative movement instead of the rotary one. • The gear motor is the actuator that transforms the hydraulic energy supplied by the pump into mechanical energy, creating a rotary motion with a defined number of revolutions and supplying a certain torque to the shaft on which mechanical systems such as fans and pulleys are connected.

Overview of pump composition and application examples

The pumps are composed of the following main parts: body, flange, cover and bushings in aluminium, and gears (driving and driven wheel) in steel. For some types of products, the flange and the cover can be made out of cast iron. Further components can also be integrated (for example valves), which vary depending on the type of product and customization requirements by the customer.

Product applications

Medical equipment Actuators for surgical tables, diagnostic equipment, latestgeneration stretchers, dental chairs: in general, for small medical equipment, where reliability and silence are necessary. Fixed applications (eg presses, machine tools, etc.) that require hydraulic power units with high performance levels. This sector was among the first that the company positioned itself in. Agricultural machinery Even in agricultural machinery there is an important evolution in terms of hydraulic systems. Increasingly high performance and low noise levels are required. MP is specialized in the production of very low displacement pumps, which require a high technological level to obtain high efficiency standards.

Industrial

Micro-hydraulics

There are many pump applications in the nautical sector: movable bulkheads, thrusters, opening and closing valves, flap drives, boarding and disembarking ladders, piloting systems. Machinery and equipment for material handling Even for these type of machines, very often used inside production facilities, low noise levels are increasingly required in addition to high efficiency standard.

Marine

Construction machinery Extreme flexibility in terms of interface versions (shafts, ports, flanges, etc.) and very high reliability are the features required Gardening machines In this type of application it is essential that oil-hydraulic pumps and motors guarantee the complete absence of contamination.

by this market. Means of transport Brake systems for trams and city trains as well as for airport vehicles. In a world that makes mobility an irreplaceable necessity, products that guarantee the highest level of reliability and safety are in high demand. Municipality issues require a very wide range of products, all with maximum reliability. New energy sources In these applications, such as wind and solar, the compatibility with the environment is of fundamental importance. Even in electric cars, small displacements gear pumps are increasingly used in many applications such as: powertrain, power steering, attitude regulators (with PPM of defectiveness tending to zero).

Municipality

Automotive

Technological innovation and quality standards

The Group's business model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company manufactures almost all the main components within its own production sites and uses the historical brand "Marzocchi Pompe", which is highly recognizable

	Technological innovation and quality standards
The Group's business manufactures almost all in the sector.	model is focused on the design, production and marketing of high performance external gear pumps and motors. The Company the main components within its own production sites and uses the historical brand "Marzocchi Pompe", which is highly recognizable
Automated and highly innovative production process	• Technologically advanced production process with a high degree of automation • Strategic phases of the production process entirely managed in house • Internal department dedicated to the design and production of equipment and machinery for the internal production needs • Application of the concepts of lean production, with the aim of maximizing efficiency while minimizing stocks
Continuous product and process innovation	• Continuous product development to meet the increasing market requirements, in terms of silence and efficiency In particular, the R&D activity has allowed Marzocchi Pompe to stand out for: − its wide range of products' cubic capacities (from 0.12 cc to 200 cc) − the high performances of its products, with particular reference to the micro hydraulics field (displacements starting from 0.12 cc) − the patented ELIKA product, low noise pump, high efficiency even at low speed and flow rate regularity due to low pulsations
Focus on quality and excellence	• Made in Italy product • High quality standards • IATF 16949 (formerly ISO TS) certifications (required for the supply of Automotive customers) and ISO 14001 for the plant in Zola Predosa (BO), and ISO 9001 for the plant in Casalecchio di Reno • 100% qualified product ensured by a test carried out on specifically designed test benches

Target markets

(*) The industrial and mobile machines sectors are served by MP both directly, through direct sales, and indirectly, through a distributors' channel/external sales network; the share of sales registered from the sales network can't be attributed to either sector, industrial or mobile machines

Main client composition

• The company benefits from a diversified client base for the Industrial and Mobile machine sectors, having their top 3 clients making up only 11,3% of sales and the top 10 representing 26,9%. The Automotive sector, on the other hand, has fewer clients making up for most of its' sales. In total, the company counts more than 800 active clients • The following table reports the weight on consolidated revenues of the top 3 and 10 clients for both sectors (Industrial & Mobile and Automotive, accounting for 70,1% and 29,9% of total sales, respectively) according to the financial year's consolidated data of Dec. 31st 2020

	Overview weight %	clients1 top
	Industrial & Mobile2		Automotive
	Revenues 2020	%	Revenues 2020	%
Top 3	2,73 mln	11,3%	10,20 mln	100,0%
Top 10	6,44 mln	26,9%	10,20 mln	100,0%
Total	23,95 mln	100,0%	10,20 mln	100,0%

% 97% of automotive' s revenues are made from sales to only one client, with whom MP subscribed, on October 2014, a multi-year contract that will expire on December 31st 2022. The contract guarantees the supply of micro-pumps by MP, with the following clauses: - Minimum order volume, with penalties for violation of amount - Pre-established price, mainly based on volumes ordered - Price-adjustment according to previously established mechanisms, based on current raw materials' prices

• 100,0%
• 100,0%

Marzocchi Pompe relies on an international distribution network present in over 50 countries. Products are distributed through various channels, such as direct sales, distributors' sales1 , American branch operations and Chinese branch operations

• a network of 7 salesmen

Nota (1): the term "distributors" describes those subjects that purchase MP's products and then re-sell them, establishing a prolonged business relationship with the company

Investment highlights
Large target market	• The Hydraulic market is large, estimated to be around Euro 8.8 billions in 2016 in Europe (Source: CETOP) and Euro 2.6 billion in 2017 in Italy (Source: Assofluid)
experiencing growth	• Evidence of upward trend of Italian hydraulic market in the 2009-2017 period, with an increase of 14,2% in production from 2016 to 2017
Wide range of product applications	• Countless possibilities in terms of MP's pumps' and motors' applications, thanks to the company's versatility and product personalization options
Business model geared	• Production process relies on high-tech machinery and extensive use of automation
towards innovation	• Internalization of strategic production process, guaranteeing constant monitoring and high-quality standards • Continuous product innovation, as it can be seen with ELIKA, one of MP's pumps covered by two patents, which stands out for its outstanding technological level that allows it to have low noise emissions and low pulsations, but high efficiency
High profitability and cash flow generation	• EBITDA margin at 12,2% in 2020, with the H2 2020 at 16.1% in line with 16,9% for the period 2016-2018 • High operating cash flow (5.8M€ in 2020 vs. 3.9M€ in 2019)
Esteemed execution	• Renowned production ability for customized products

Organizational structure and production sites

• Marzocchi Pompe can count on a team of professionals with consolidated experience. As of 1st January 2021 the workforce consists of 243 resources (of which 241 are permanent employees), with an heterogeneous background of professional skills that strengthens the efficiency of the work team. The

History

Consolidated Profit & Loss

Eur 000	31-Dec-20		31-Dec-19
SALES REVENUEE	34.143		39.171
WIP changes	(307)	100%	(1.433)	100%
Revenue from production and sales	33.836		37.738
Other revenue	916		672
PRODUCTION VALUE	34.752		38.410
Raw materials consumption	(7.931)	(23,4%)	(8.350)	(22,1%)
Service costs	(9.621)	(28,4%)	(10.675)	(28,3%)
Costs for use of third-party goods	(307)	(0,9%)	(336)	(0,9%)
Various operating costs	(378)	(1,1%)	(334)	(0,9%)
VALUE ADDED	16.516	48,81%	18.715	49,59%
Staff costs	(12.387)	(36,6%)	(13.294)	(35,2%)
EBITDA	4.129	12,20%	5.422	14,37%
Depreciation, amortisations and write-downs	(5.229)	(15,5%)	(5.361)	(14,2%)
OPERATING PROFIT (EBIT)	(1.100)	(3,3%)	60	0,16%
Non-recurring income and charges	0	0,00%	677	1,79%
Financial income and charges	(510)	(1,5%)	(669)	(1,8%)
Financial value adjustments	(24)	(0,1%)	(104)	(0,3%)
EARNINGS BEFORE TAX	(1.634)	(4,8%)	(36)	(0,1%)
Income tax for the year	1.863	5,51%	239	0,63%
NET INCOME	229	0,68%	203	0,54%
(National accounting standards + IFRS 16 – Leases)
Note: Net of the extraordinary "take-or-pay" contribution invoiced for the clause relating to the failure to reach the minimum quantities envisaged in the contract with the main automotive customer, amounting to €0.8 million in financial year 2019; net of non-recurring income and expenses: in financial year 2019, adjustment of the item other revenues by €106 thousand for charges to customers for contributions to product development.

Eur 000	31-Dec-20	31-Dec-19
A) NET FIXED ASSETS	22.426	26.105
Intangible fixed assets	1.502	1.405
Tangible fixed assets	19.712	23.465
Financial fixed assets	1.212	1.236
B) NET WORKING CAPITAL	6.901	6.787
Inventories	7.673	8.119
Advances from customers	(17)	(23)
Trade receivables	6.365	7.868
Other receivables	2.299	1.363
Trade payables	(4.858)	(4.555)
Other payables	(2.494)	(2.929)
Provisions for risks and charges	(1.526)	(2.770)
Other assets/liabilities	(542)	(285)
C) GROSS INVESTED CAPITAL	29.327	32.893
D) EMPLOYEE SEVERANCE PAY	(1.631)	(1.681)
E) NET INVESTED CAPITAL	27.696	31.212
Covered by
F) EQUITY	(18.444)	(18.676)
G) NET FINANCIAL POSITION	(9.252)	(12.535)
Medium/long-term financial payables	(11.705)	(11.898)
Short-term financial payables	(5.191)	(5.361)
Cash and cash equivalents	7.644	4.723
H) TOTAL HEDGES	(27.696)	(31.212)
(National accounting standards + IFRS 16 - Leases)

Consolidated Cash Flow Statement

	2020	2019
	€/000	€/000
Operating profit [EBIT]	(1.100)	1.012
Tax effect	1.863	239
Change in funds	(1.295)	153
Provisions and write-downs	5.229	5.361
Income cash flow	4.697	6.765
Changes in working capital
Inventories	446	1.192
Trade receivables	1.497	(1.627)
Other receivables	(936)	(38)
Trade payables	303	(1.451)
Other payables	(179)	(915)
Changes in working capital	1.131	(2.840)
Operating cash flow (Free cash flow)	5.829	3.926
Net tangible & intangible investments	(1.574)	(3.789)
Change other fixed assets	24	105
Financial value adjustments	(24)	(104)
Cash flow from investing activity	(1.574)	(3.789)
Financial charges/income	(510)	(944)
Share capital increases (/decreases)	0	8.002
Other Equity changes	(461)	(513)
Cash flof from financial activities	(971)	6.545
	3.283	6.682
Net cash flow
Start-of-period cash or (exposure)	(12.535)	(19.217)
End-of-period cash or (exposure) Net cash increase (decrease)	(9.252) 3.283	(12.535) 6.682

Focus on LBO

During 2018 the company underwent a restructuring procedure that modified the shareholding structure. As of today, the company is owned by Paolo Marzocchi.

Disclaimer

Disclaimer
Privacy	The document, drafted by the management of Marzocchi Pompe S.p.A., is strictly confidential, therefore none of its contents may be shared with third parties or used for purposes different from those specified in it. Furthermore, this Document shall not be copied or reproduced without the written consent of Marzocchi Pompe S.p.A., either wholly or partially. It is therefore explicitly agreed that, by accepting this presentation, the recipient implicitly gives his consent to be bound by the limitations it contains.
	If the recipient at any time disagreed with this constraint, he would kindly and immediately return the document to Marzocchi Pompe S.p.A
Information	The document does not represent in its entirety neither Marzocchi Pompe S.p.A. nor the project that Marzocchi Pompe S.p.A. aims to achieve and, therefore, there may be some omissions concerning information related to it. Marzocchi Pompe S.p.A. is not obliged to provide the recipient with any updates or additions to the document, even if it contains errors, omissions or inaccuracies.
	The document was produced with due care and diligence; nevertheless, Marzocchi Pompe S.p.A. gives no warranty as to both the completeness, accuracy and correctness of the information and the forecasts or opinions expressed therein. Some parts of the document contain statements which are long-term forecasts, which represent then estimates subject to risks and uncertainties and, therefore, may differ, even substantially, from any future results.
	Neither Marzocchi Pompe S.p.A. nor its employees assume responsibility for the content of the document, even in cases where the recipient may suffer, even implicitly, any damages or losses caused by the omission of information, data and analysis.
General terms &	The document has been prepared by the management of Marzocchi Pompe S.p.A
Conditions	The document is not to be construed as an offer or solicitation to buy or subscribe shares issued by Marzocchi Pompe S.p.A. or the respective managers, directors, employees or agents. It is agreed that, if you were to make an offer or invitation to purchase or subscribe shares or related financial instruments issued by Marzocchi Pompe S.p.A., the same would be carried out in compliance with the applicable regulations and with the use, when applicable, of an admission document.
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CONTACTS

Marzocchi Pompe S.p.A. ir@marzocchipompe.com

EnVent Capital Markets – Nominated Adviser Paolo Verna pverna@enventcapitalmarkets.co.uk CDR Communication - Investor & Media Relations Paola Buratti paola.buratti@cdr-communication.it Martina Zuccherini martina.zuccherini@cdr-communication.it