Marzocchi Pompe

Investor Presentation • Oct 5, 2022

1H-2022 RESULTS PRESENTATION

Disclaimer

Disclaimer
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	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.

• Company at a Glance
• 1H 2022 Results & Outlook
• Achievements
• Market & Competitive Positioning
• Appendix
  • Business Overview

Marzocchi Pompe at a glance: world leader in top-performing products

	Marzocchi Pompe at a glance: world leader in top-performing products
Company	Marzocchi Pompe is a leading world player in the design, motors, which are used in sectors like: industrial (textile energy, etc.), mobile (agricultural machines, forklift trucks,	production and marketing of high performance machines, machine tools, plastic injection etc.) and automotive (transmissions, power	external gear pumps and machines, medical equipment, steering, attitude adjusters,).
Key Success Factors	Marzocchi Pompe boasts a wide range of products well market needs in terms of displacements and interfacing. A key feature is the continuous investment in R&D aimed The production of the historical brand «Marzocchi Predosa and Casalecchio di Reno, through an extremely	known for its high performance and great reliability, at satisfying the customer demand for high Pompe» is entirely carried out in Italy, in two locations verticalized process that allows to keep the product	covering most of the performance products. nearby Bologna: Zola quality under control.
Main Consolidated Financials	€/000 2019 2020 2021 1H 2022 Net Sales 39.171 34.143 40.538 25.502 EBITDA 5.422 4.129 7.153 3.849 EBITDA Margin 14,4% 12,2% 16,4% 15,2% Net Income 203 229 1.591 926 Net Equity 18.676 18.444 19.796 20.272 Net Financial Debt 12.535 9.252 7.838 10.080 • Over 1,0 mln pumps produced • More than 800 active clients 2021 KPI • Average employees number: 271 Calculated on Sales Revenues + WIP, in 2019 net of the take or pay clause effect on automotive sales, not applicable in subsequent years	1H 2022 Revenues by Business Line 18,6% 39,1% 23,5% 18,7% Sales Network Automotive Industrial Mobile	1H 2022 Revenues by geographic area 0,5% AMERICA 9,3% EUROPE ITALY 36,4% 29,3% ASIA RoW 24,4%
Strategy	Marzocchi Pompe aims to continue: • to upgrade the production plant in order to expand • to invest in R&D in order to enlarge the product range, • to increase penetration on Mobile and Industrial	its capacity and improve efficiency consolidating its position in the reference applications such as the forklift trucks (mobile) and market, as witnessed by the important award	market plastic injection machines (ind.) from a leading world player

1H 2022 Results

1H 2022 Results: all-time high half-year sales & strong margin

NET SALES UP 28% AT EURO 25.5 MLN, ONCE AGAIN DRIVEN BY CORE BUSINESS GROWTH AT +33%

THE CORE BUSINESS SALES REACHED EURO 20.7 MLN IN THE FIRST HALF OF 2022, POSTING A 32.8% Y-O-Y INCREASE AND A HEALTHY +26.8% ON THE

SECOND HALF OF 2021 WHICH FULLY RECOVERED PRE-PANDEMIC LEVELS AND ALSO BENEFITED FROM SELLING PRICE UPLIFT THE AUTOMOTIVE SALES SATISFACTORILY GREW 10.6% Y-O-Y TO EURO 4.8 MLN, WITH A 14.9% INCREASE ON THE SECOND HALF OF 2021 DESPITE

ONGOING CHIP SHORTAGE AND ALSO THANKS TO MARZOCCHI CAPABILITY TO APPLY COST-TO-PRICE ADJUSTMENTS STRONG EBITDA MARGIN AT 15.2% (vs 17.6% in H1 2021) FOLLOWING A 3.7% ENERGY COST IMPACT (vs. 2.2% in H1 2021) ACCOUNTS FOR KEEN BUSINESS MANAGEMENT THE DISTINCTIVE "MAKE" APPROACH COUPLED WITH A TARGETED INCREASE IN INVENTORY, ENABLED MARZOCCHI POMPE TO KEEP DELIVERY TIMES UNCHANGED. IN ADDITION, ENERGY SAVING MEASURES HAVE BEEN DEFINED AND SPECIFIC NEGOTIATIONS WITH CUSTOMERS PROMPTLY STARTED FINANCIAL POSITION, INCLUDING EURO 0.7 MLN PROCEEDS FROM REAL ESTATE ASSET SALE IN JULY, AMOUNTED TO EURO 9.4 MLN DEBT

NET FINANCIAL DEBT INCREASED TO EURO 10.1 MLN (VS. 7.8 MLN AT END-2021) DUE TO HIGHER WORKING CAPITAL REQUIREMENTS TIED TO STRONG SALES GROWTH & TACTICAL RISE IN INVENTORY

TIGHT CONTROL ON CASH MANAGEMENT ALLOWED FOR BOOSTING MARKET PENETRATION WHILE KEEPING NET DEBT UNDER CONTROL. ADJUSTED NET

MARZOCCHI POMPE KEY STRENGTHS TO PUSH FURTHER GROWTH

• RELENTLESS PRODUCT INNOVATION AS WITNESSED BY THE NEW "FTP" LOW PRESSURE PUMP ("ELIKA" FAMILY) THAT OPENS NEW MARKETS
• OPERATING FLEXIBILITY ALLOWING CUSTOMIZED HIGH-PERFORMANCE PRODUCTS AT THE SAME TIME PREVENTING BUSINESS INTERRUPTION

* EBITDA Margin based on Sales Revenue + WIP

Source: consolidated financial statements

• Revenues topped Euro 25.5 million in 1H-22, recording a healthy 28% increase and marking the

all-time half-year record level for Marzocchi Pompe • Growth was once again mainly driven by the Core Business sales (Euro 20.7 million, +32.8%), while Automotive sales posted a healthy 10.6% rise to Euro 4.8 million despite ongoing market difficulties • EBITDA was substantially stable at Euro 3.85

million (vs. Euro 3.88 million in 1H 2021), confirming the maximum levels of the prepandemic era in spite of the significant rise of energy costs due to the global scenario • EBITDA margin slid to 15.2% (from 17.6% in 1H

2021), following weight of energy costs increased to 3.7% (from 2.2%). Marzocchi Pompe has promptly implemented a number of actions to reverse the trend, including the negotiations with customers, with the aim of rising sale prices (after the price list uplift in 2H 2021)

Source: consolidated financial statements

• Revenues by Core market segments (Sales Network, Industrial and Mobile) accounted for more than three quarters of Total Revenues, reaching Euro 20.7 million (vs. Euro 15.6 million in 1H 2021), thanks to generally recovering demand from pandemic levels and especially driven by Marzocchi Pompe distinctive capability to serve clients with high performing products on a customized basis • Weight of Automotive sales slid below 20% (vs. 21.7% in 1H-21) as growth rate was 10.6% vs. 32.8% of Core Business. Notably the Automotive sales performed pretty well in a difficult market outlook on a global basis

* EBIT Adjusted is Net of depreciation from revaluation resulting from the merger from LBO

Source: consolidated financial statements

EBIT Adjusted and Net Result (€m) • EBIT stood at Euro 1.3 million, slightly down from Euro 1.4 million at 30 June 2021, following the higher raw material and energy costs impacting 2022 profitability

• Adjusted EBIT, calculated net of revaluation depreciation and amortisation resulting from the merger from LBO, amounting to Euro 0.4 million in the halfyear, equalled Euro 1.7 million compared to Euro 1.9 million in the first half of 2021 • In the first half of 2022 Net Profit stood at Euro 0.9 million, with a single-digit decrease

vs. 1.0 million at 30 June 2021. This excellent performance witnesses Marzocchi Pompe capability to face the market difficulties with prompt actions to control costs and push sales forward

Net Financial Debt up following higher working capital

(4,0) (6,0) (8,0) (10,0)			process
Revaluation reserve	1,867	1,867
Legal reserve	1,055	1,000
Other reserves	3,375	2,459
Cash flow hedge reserve	138	(99)
Profit/(loss) for the period	926	1,591
Negative reserve treasury stock	(91)	(24)
Total Shareholders' Equity	20,272	19,796
Source: consolidated financial statements

• Net Financial Debt increased to Euro 10.2 million at 30 June 2022, from Euro 7.8 million at 31 December 2021, due to the physiological growth in working capital linked to the strong sales growth, also stemming from tactical inventory increase to avoid interruptions in the production process • Net Financial Position as of June 30, 2022, does not incorporate the proceeds from the divestment of a non-strategic real estate asset, which perfected on July 14, 2022, for a cash-in of Euro 668,000. As a
• result, the Adjusted Net Financial Position amounts to Euro 9.4 million of debt. • The increase in Shareholders' Equity in the first 6 months of 2022 is due to Net Profit

Achievements

• THE FIRST HALF OF 2022 WAS CHARACTERIZED BY GREAT ECONOMIC UNCERTAINTY, MAINLY DUE TO RISING RAW MATERIAL &
• ENERGY COSTS, AMPLIFIED BY THE WAR IN UKRAINE AND THE ONGOING HEALTH EMERGENCY, PARTICULARLY IN CHINA WITHIN THIS VERY CHALLENGING SCENARIO, MARZOCCHI POMPE ACHIEVED ITS BEST-EVER SALES REVENUE, CONFIRMING THE BRAND EXCELLENT MARKET POSITIONING AS WELL AS THE EFFECTIVENESS OF THE GROUP BUSINESS MODEL FEATURING A DISTINCTIVE "MAKE" APPROACH AND HIGH PRODUCTION FLEXIBILITY, BOTH SUPPORTING ITS KEY STRENGHT: THE CAPABILITY TO SUPPLY TOP-PERFORMING CUSTOMIZED PRODUCTS FULLY DEVELOPED ON CLIENT NEEDS, WHICH ALSO ALLOWS TO FURTHER REINFORCING RELATIONSHIP WITH CUSTOMERS MARZOCCHI'S ROBUST ORDER BACKLOG TO DATE COUPLED AN ENVIABLE FINANCIAL SOLIDITY MAKE MANAGEMENT LOOK AT FULL FY 22 WITH CONFIDENCE. THE CURRENT STRONG FLUCTUATIONS IN ENERGY COSTS, ON THE ONE HAND, DO NOT AFFECT SIGNIFICANTLY OPERATING COSTS (ACCOUNTING FOR 3.7% OF SALES IN 1H 2022), ON THE OTHER THEY WILL BE ABSORBED BY THE NEW PRICE LISTS IMPLEMENTED IN THE SECOND HALF OF THE YEAR THE FORECASTS FOR THE 3-YEAR PERIOD 2022 –2024 (OUTLINED IN THE MARCH 30 PRESS RELEASE) REMAIN UNCHANGED: SIGNIFICANT ORGANIC GROWTH IN REVENUES, WITH A CAGR 2021-2024 IN THE 6-8% RANGE
• RETENTION OF THE GOOD LEVELS OF PROFITABILITY ACHIEVED DURING THE YEAR MAINTAINING AN OPTIMAL LEVEL OF LEVERAGE (NET DEBT/EBITDA 1-1.5X) AND A LEVERAGE RATIO BELOW 50% OF SHAREHOLDERS' EQUITY CONFIRMATION OF THE DIVIDEND POLICY ALREADY ADOPTED IN RECENT YEARS
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ESG Achievements confirm strong commitment towards Sustainability

• Sustainability Report Marzocchi has started a process of analysis aimed at identifying methods and timing for this activity, in order to improve its footprint to enhance value creation
• Marzocchi Certifications

• In March 2022 Marzocchi Pompe, in partnership with Yarix, finalized a C SOC + Cynet project Marzocchi's Cognitive Security Information Center C SOC will operate Physical and Biometric Security of last generation Cynet tasks are:
• the: Attack Prevention & Detection Response Orchestration

H24x7x365 monitoring of company networks

Monitoring & Control

- IN 2019 THE NEW ELIKA DEPARTMENT WAS COMPLETED THROUGH AN INVESTMENT OF MORE THAN 1 MILLION EUROS IN THE PRODUCTION SITE OF CASALECCHIO (BO) COVERED BY TWO PATENTS, ELIKA IS MARZOCCHI POMPE FLAGSHIP PRODUCT CHARACTERIZED BY LOW NOISE & HIGH EFFICIENCY IN THE SECOND HALF OF 2021, THE PLANNED RANGE EXTENSION WAS BOOSTED BY: 1. THE NEW "ELIKA 1P" AND "ELIKA K1P" PUMPS, WHICH FURTHER IMPROVE PERFORMANCES 2. THE NEW "FTP – FLUID TRANSMISSION PUMP", WHICH OPENS UP NEW MARKETS AND THAT AT WAS WAS PRESENTED IN MARCH AT THE "VTM" IN TURIN AND IN JUNE AT THE "IVT EXPO" IN KOLN (BOTH EVENTS TOOK PLACE IN PRESENCE)

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"We are very pleased to have completed this first and important piece of our business plan. In 2019 we have already invested over 1 million euros, in a recently renovated area of the historic headquarters of Casalecchio (BO), a new department focused on the production of the ELIKA pump in its various versions. We want to focus on the product, with higher margins than traditional ones, which we believe may be one of our main drivers of growth for the coming years. Also, in the second half of the year we will continue to invest about half a million euros, aimed at launching new products and increasing the efficiency and productivity of our production sites." declared Gabriele Bonfiglioli, CEO of Marzocchi Pompe.

2022 Live Exhibitions: Marzocchi Pompe is always in the forefront

• VTM Torino Automotive Symposium
• Fucine Hall Booth 48 IVT Expo Cologne – Industrial Vehicles Symposium Stand 1100 GFPS Naples – Global Fluid Power Symposium Paper Conference + Panel + Exhibitor Table Bauma Munich – World Mobile Exhibition EIMA Bologna – Agricultural Exhibition

CTI Berlin – Automotive Symposium Main Hall Stand F4

Hall A4 Stand 414

Hall 18 Stand B19

2022 Investor Relations Events

	What's Next: …and Constantly in touch with Market leaders
	2022 Investor Relations Events
 1 April	FY 2021 Results Presentation
 11 April	Road Show in Paris
 24 May	Euronext Growth Conference
5 October	H1 2022 Results Presentation
6 October	Mid Cap Event in Paris
18 November	Integrae Finance Gala

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 billion in 2000, to around Euro 41.5 billion in 2020 of which Euro 29.9 billion (72%) stemming from the hydraulic sector, and Euro 11.6 billion (28%) from the pneumatic sector (Source: ISC2 – 2020 – International Fluid Power Statistics – date of publication: 10 December 2021). In Italy, the Fluid Power market in 2020 was estimated to be around Euro 1.9 billion, of which Euro 1.2 billion (63%) stemming from the hydraulic sector, and Euro 0,7 billion (37%) from the pneumatic sector. (Source: Assofluid – Il Fluid Power in Italia, Rapporto di settore 2020). 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.

Source: CETOP 3– ISC Statistics 2020 Source: Oxford Economics – National Fluid Power Association, Forecast of End-Use Markets- Winter 2021
International Statistics Committee project has the objective of providing comparable information on Fluid Power markets in Europe, USA and Asia.
		concept is used, as explained by CETOP on the report European Fluid Power Directory 2017/2018, for the market estimates in order to cover all of		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.	Notes: World and regional aggregates consist of the 21 countries included within the analysis	the fluid power market, and not exclusively that segment –is an organization of associations present in 17 European countries and representing more than 1.000 companies operating Fluid Power, representing 80 to 90% of the country's industry,

Focus on hydraulic pumps' market

Within the Hydraulic home1 market, the pumps' segment is estimated by ISC to be around Euro 4.9 billion in 2020 (17%), of which Euro 3.2 billion (11%) coming from the reciprocating pumps' segment (axial and radial piston pumps) and Euro 1.8 billion (6%) from the rotary pumps' segment (gear, vane, orbital, screw and other types of pumps). Focusing on the rotary pumps sector, in which MP operates, USA stands out as the main marketplace with around Euro 0.738 billion (41.2%) activity, followed by Asia, with Euro 0.730 billion (40.8%), and Europe with Euro 0.324 billion (18%).

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.

Note (3) CETOP - European Fluid Power Committee –is an organization of associations present in 17 European countries and representing more than 1.000 companies operating Fluid Power, representing 80 to 90% of the country's industry, 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 9.4% of sales and the top 10 representing 25.3%. The Automotive sector, on the other hand, has fewer clients making up for most of its sales. In total, the company has 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 78.9% and 21.1% of total sales, respectively) according to the financial year's consolidated data of Dec. 31st 2021

	Overview weight %	clients1 top
	Industrial & Mobile2		Automotive
	Revenues 2021	%	Revenues 2021	%
	3.00 mln	9.4%	8,57 mln	100,0%
Top 3
Top 10	8.08 mln	25.3%	8,57 mln	100,0%
Total	31.97 mln	100.0%	8,57 mln	100,0%

% 93% 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
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  -

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 8.6 billion in 2020 in Europe (Source: CETOP) and Euro 1.9 billion in 2020 in Italy (Source: Assofluid)
experiencing growth	• Evidence of upward trend of Italian hydraulic market in the 2009-2018 period, with a 15.2% decrease in production from 2019 to 2020 due to the Covid-19 pandemic
Wide range of product applications	• Countless possibilities in terms of MP pumps' and motors' applications, thanks to the company's versatility and product personalization options
	• Production process relies on high-tech machinery and extensive use of automation
Business model geared 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 produce low noise emissions and low pulsations, but has high efficiency
High profitability and	• EBITDA margin at 16.4% in 2021, strongly improved vs. 2020 (12.2%) and 2019 (14.4%), and close to the 16.9% for the period 2016-2018 (pre-Covid levels) – 2018 Adjusted
cash flow generation	• High net cash flow (1.4M€ in 2021) allowing for further decrease in Net Debt with a comfortable NFP/EBITDA of 1.1x
Esteemed execution	• Renowned production ability for customized products
capabilities	• High standards on quality, reliability and product performance • Highly responsive customer service, and competent assistance in pre- and post-order phases

Organizational structure and production sites

- Marzocchi Pompe can count on a team of professionals with consolidated experience. As of the 1st of January 2022 the workforce consists of 271 resources (of which 245 are permanent employees), with an heterogeneous background of professional skills that strengthens the efficiency of the work team. The

Marco Minghetti

History

Consolidated Profit & Loss

Eur 000	30-Jun-22		30-Jun-21
Sales Revenue	25,502		19,928	100%
WIP changes	(218)	100%	2,053
Other revenues	435		829
PRODUCTION VALUE	25,719		22,810
Raw material consumption	(6,548)	(25.9%)	(5,329)	(24.2%)
Service costs	(7,077)	(28.0%)	(6,094)	(27.7%)
Costs for use of third-party goods	(182)	(0.7%)	(151)	(0.7%)
Various operating costs	(224)	(0.9%)	(235)	(1.1%)
VALUE ADDED	11,690	46.23%	11,001	50.05%
Staff costs	(7.841)	(31.0%)	(7,125)	(32.4%)
EBITDA	3,849	15.22%	3,877	17.64%
Depreciation and amortization	(2,279)	(9.0%)	(2,464)	(11.2%)
Accounting for contingencies	(300)	(1.2%)
OPERATING PROFIT (EBIT)	1,269	5.02%	1,413	6.43%
Financial income and charges	(23)	(0.1%)	(68)	(0.3%)
Financial value adjustments	10	0.04%	(106)	(0.5%)
EARNINGS BEFORE TAX	1,256	4.97%	1,238	5.63%
Income tax for the year	(330)	(1.3%)	(204)	(0.9%)
NET INCOME	926	3.66%	1,034	4.71%

(National accounting standards + IAS 17)

Consolidated Balance Sheet

Eur 000	30-Jun-22	31-Dec-21
A) NET FIXED ASSETS	17,125	19,081
Intangible fixed assets	1,183	1,306
Tangible fixed assets	14,398	16,391
Financial fixed assets	1,544	1,384
B) NET WORKING CAPITAL	14,798	10,105
Inventories	13,078	12,121
Assets intended for sale	668	-
Advances from customers	(33)	(11)
Trde receivables	10,700	7,703
Other receivables	1,982	2,680
Trade payables	(6,703)	(7,503)
Other payables	(3,858)	(3,628)
Provisions for risks and charges	(1,743)	(1,570)
Other assets/liabilities	708	313
C) GROSS INVESTED CAPITAL	31,923	29,186
D) EMPLOYEE SEVERANCE PAY	(1,571)	(1,552)
E) NET INVESTED CAPITAL	30,352	27,633
Covered by F) NET EQUITY	(20,272)	(19,796)
G) NET FINANCIAL POSITION	(10,080)	(7,838)
Medium/long-term financial payables	(11,538)	(8,881)
Short-term financial payables	(5,246)	(4,637)
Cash and cash equivalents	6,704	5,681
H) TOTAL HEDGES	(30,352)	(27,633)

Consolidated Cash Flow Statement

€/000	30-Jun-22	30-Jun-21
Operating profit [EBIT]	1,269	(963)
Tax effect	(330)	335
Change in funds Provisions and write-downs	192 2,279	(85) 2,224
Income cash-flow	3,410	1,511
Change in working capital Inventories	(958)	(2,635)
Trade receivables	(2,976)	(1,197)
Other receivables	30	687
Payables to suppliers	(800)	1,197
Other payables	(164)	409
Changes in working capital	(4,867)	(1,538)
Operating Cash Flow (Free cash flow)	(1,456)	(27)
Net tangible & intangible investments	(163)	(319)
Change other fixed assets	(161)	(174)
Financial value adjustments	10	(120)
Cash flow from investing activity	(313)	(613)
Financial charges/income	(23)	(175)
Share capital increases/(decreases)	0	0
Other equity changes	(450)	1,615
Cash flow from financial activities	(473)	1,440
Net cash flow	(2,242)	800
Start-of-period cash or (exposure)	(7,838)	(9,252)
End-of-period cash or (exposure) Net cash increase (decrease)	(10,080) (2,242)	(8,452) 801

(National accounting standards + IAS 17)

Focus on family and management Buy-out

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 & Conditions	The document has been prepared by the management of Marzocchi Pompe S.p.A
	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.
	39

CONTACTS

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

Integrae SIM S.p.A. – Euronext Growth Advisor Francesco D'Antonio francesco.dantonio@integraesim.it

Diego Carmignani diego.carmignani@integraesim.it

CDR Communication - Investor & Media Relations Paola Buratti, Investor Relations paola.buratti@cdr-communication.it Martina Zuccherini, Media Relations martina.zuccherini@cdr-communication.it