Sit — Interim / Quarterly Report 2024

May 9, 2024

Q1 2024 – Results presentation

Highlights

• Q1 consolidated revenues are €69,0 -17,4% vs Q1 2023
• Q1 Divisional sales:
  • Heating & Ventilation accounts €47,9, down 23,6% vs PY
  • Metering at €20,7 is +1,4%, with Smart Gas Metering at -2,4% and Water metering at +9,0% vs PY
• Heating & Ventilation is performing in line with expectations in Q1 with some geographies slightly higher than budget
• Smart Gas Metering has strong competitive position in the domestic market and robust backlog for the year; Water Metering in line with Q1 budget with FY expected at double digit growth vs PY
• Q1 EBITDA of €6,4 at 9,2% of revenues vs €8,3 at 9,9%, is still impacted by volumes and on-going footprint reorganization
• Net debt at €161,1 vs €143,1 of PY and €153,7 at BoP, in line with seasonality expectations
• EcoVadis, the world's largest provider of sustainability evaluation for companies, has awarded GOLD rating to SIT with 77/100 points (+14/100 improvement vs PY) positioning SIT in the best 2% performers worldwide (on +130.000 companies examined)

Key financial results

€M , unless otherwise stated	Q1 24	% of sales	Q1 23	% of sales	Chg YoY
Revenues	69 0 ,	100 0% ,	83 6 ,	100 0% ,	(17 4%) ,
EBITDA	6 4 ,	9 2% ,	8 3 ,	9 9% ,	(23 4%) ,
D&A impairment of assets ,	6 8 ,		6 7 ,
EBIT	(0 5) ,	-0 7% ,	1 6 ,	1 9% ,	(130 9%) ,
financial (charges)/income Net	(1 8) ,		(1 7) ,
(charges)/income forex Net	0 2 ,		0 3 ,
EBT	(2 1) ,	0% -3 ,	0 2 ,	2% 0 ,	-
Taxes	0 2 ,		1 2 ,
Net income	(1 8) ,	-2 7% ,	1 3 ,	1 6% ,	(237 9%) ,
Cash flow from operations	(7 6) ,		(10 3) ,
NTWC	86 5 ,		77 8 ,
financial debt Net	161 1 ,		143 1 ,

• Q1 consolidated revenues account 17,4% decrease
• Divisional trends:
  • Heating & Ventilation: -23,6%
  • Metering: +1,4%
• EBITDA at €6,4 vs €8,3 of PY
• EBIT at -€0,5 vs €1,6 of PY
• Tax revenue for €0,2 due to deferred tax asset
• Net income at -€1,8 vs €1,3
• Cash flow from operations is minus €7,6 after capex for €4,4
• NTWC of €86,5 (31,2% of revenues) vs € 77,8 of PY (23,0% )
• Net financial debt stands at €161,1 vs €143,1 of PY and €153,7 at BoP

Consolidated revenues

Breakdown by Division

€M , unless otherwise stated	Q1 24	%	Q1 23	%	Chg . YoY
Heating & Ventilation	9 47 ,	69 3% ,	62 7 ,	0% 75 ,	(23 6%) ,
Metering	20 7 ,	29 9% ,	20 4 ,	24 4% ,	1 4% ,
Total business sales	68,5	99,3%	83,0	99,4%	(17 ,5%)
Other revenues	0 5 ,	0 7% ,	0 5 ,	0 6% ,	(0 8%) ,
Total revenues	69,0	100,0%	83,6	100,0%	(17 ,4%)

Breakdown by geography

€M , unless otherwise stated	Q1 24	%	Q1 23	%	Chg . YoY
Italy	23	33	25	30	(7
	3	7%	0	0%	1%)
	,	,	,	,	,
(excuding	29	43	40	48	(25
Italy)	9	3%	2	1%	6%)
Europe	,	,	,	,	,
America	10	14	12	14	(14
	2	8%	0	3%	5%)
	,	,	,	,	,
Asia/Pacific	5	8	6	7	(11
	7	2%	4	6%	3%)
	,	,	,	,	,
Total revenues	69,0	100,0%	83,6	100,0%	(17 ,4%)

Consolidated revenue bridge (€m)

Heating & Ventilation sales

Q1 Heating & Ventilation sales by geography

€M , unless otherwise stated	Q1 24	%	Q1 23	%	Chg . YoY
Italy	9	19	11	19	(22
	2	2%	9	0%	8%)
	,	,	,	,	,
(excuding	22	47	33	52	(30
Italy)	9	8%	0	6%	6%)
Europe	,	,	,	,	,
America	9	20	11	18	(16
	8	4%	7	7%	3%)
	,	,	,	,	,
Asia/Pacific	6	6%	6	7%	(1
	0	12	1	9	1%)
	,	,	,	,	,
Total business sales	47,9	100,0%	62,7	100,0%	(23 ,6%)

• Divisional sales -23,6%, forex impact not material
• Overall, Q1 24 reflects normalization of the expected seasonality
• Italy down 22,8% with all product families involved. Higher impact in Direct Heating due to pellet stoves
• Europe down 30,6% vs PY. Turkey (13,9% of Divisional sales), decrease above average due to fans and mechanical controls in Central Heating; Central Europe markets are down €3,3M (-30,2%) in Central Heating with Heat Recovery Units impacted by general trend in the sector
• America. Q1 sales are down €1,9M, -16,3% mainly due to Central Heating
• Asia/Pacific in line with PY; China (8,2% of Divisional sales) shows €1,0M, 9,0% increase in Central Heating; Australia (2,1% of Divisional sales) down 40%

Metering sales

Q1 Smart Gas Metering

, unless otherwise stated €M	Q1 24	%	Q1 23	%	Chg . YoY
Residential	11	82	11	82	(2
	0	0%	2	0%	3%)
	,	,	,	,	,
Commercial	2	7%	2	7%	(2
&	4	17	4	17	5%)
Industrial	,	,	,	,	,
Other	0	0	0	0	(16
	0	3%	0	3%	5%)
	,	,	,	,	,
Total business sales	13,4	100,0%	13,7	100,0%	(2 ,4%)

Q1 24 Smart Gas Metering are 99% in Italy vs 94,5% of PY

Q1 Water Metering

€M, unless otherwise stated	Q1 24	%	Q1 23	%	Chg. YoY
Water meters, finished	2,8	38,9%	2,6	39,2%	8,3%
Water meter parts	4,0	55,4%	3,5	52,9%	14,1%
Other	0,4	5,7%	0,5	7,9%	(20,9%)
Total business sales	7,3	100,0%	6,7	100,0%	9,1%

Net trade working capital

, unless otherwise stated €M	2024 03	2023 12	Q1 24 Change	2023 03	2022 12	Q1 23 Change	YoY change
Inventory	90 9 ,	83 3 ,	7 5 ,	101 5 ,	91 4 ,	10 1 ,	(10 6) ,
receivables Accounts	63 3 ,	63 5 ,	(0 2) ,	51 1 ,	63 8 ,	(12 7) ,	12 2 ,
payables Accounts	(67 7) ,	(66 9) ,	(0 8) ,	(74 7) ,	(81 4) ,	6 7 ,	0 7 ,
Trade Working Capital Net	86 5 ,	79 9 ,	6 6 ,	77 8 ,	73 8 ,	4 1 ,	8 6 ,
NTWC/Revenues	2% 31 ,	5% 24 ,	7% 6 ,	0% 23 ,	8% 18 ,	2% 4 ,	2% 8 ,

Non recourse factoring 4,2 5,2 (1,0) 16,7 13,3 3,3 (12,4) YTD reported Q1 24 NTWC: +€6,6

Accounts receivables adjusted 67,5 68,6 (1,1) 67,7 77,1 -9,4 (0,2) AR adjusted/Revenues 24,4% 21,0% 3,3% 20,0% 19,6% 0,4% 4,4% • Inventory increase (+€7,5) reflects seasonality in H&V and order book in the Metering business

Net Trade Working Capital adjusted 94,5 91,6 2,9 97,1 91,9 5,2 -2,6 NTWC adjusted/Revenues 34,1% 28,1% 6,0% 28,7% 23,4% 5,3% 5,5%

• Account Receivables and Account payables are flat due to volumes decrease

Capex account payables (3,8) (6,6) 2,8 (2,6) (4,8) 2,2 (1,2) YOY change in NTWC: +€8,6)

• Accounts payables adjusted (63,9) (60,3) (3,6) (72,1) (76,6) 4,5 8,3 • Inventory decrease (-€10,6) and destocking impact on purchasing (+€7,0)
• AP adjusted/Revenues 23,1% 18,5% 4,6% 21,3% 19,5% 1,8% 1,8% • Change in factoring policy

Cash flow and net debt

Change in net debt

€M , unless otherwise stated	Q1 24	Q1 23
cash flow Current	4,0	9 ,1
Change in NTWC	(6 0) ,	(3 2) ,
Inventory	(7 0) ,	(9 2) ,
Receivables Accounts	0 4 ,	13 1 ,
Accounts Payables	0 5 ,	(7 1) ,
Other working capital	(1 ,1)	(11 2) ,
Capex , net	(4 ,4)	(5 0) ,
flow from Cash operations	(7 6) ,	(10 3) ,
Financial charges	(2 3) ,	(2 0) ,
IFRS 16 - Leases	(0 1) ,	-
Other	2 6 ,	(0 3) ,
Change in debt net	(7 ,4)	(12 6) ,
debt Net - BoP	153 ,7	130 ,5
debt Net - EoP	161 ,1	143 ,1

• Current cash flow of €4,0 vs €9,1 of PY
• NTWC burns €6,0 mostly due to inventory seasonality
• Other working capital in PY (-€11,2m) accounted dispute cash settlement with customer
• Capex for €4,4 vs €5,0 of PY

Net financial position

unless otherwise stated €m,	31/03/2024**	31/03/2024*	31/12/2023*	31/03/2023*
(Cash & cash equivalents)	(11 3) ,	(6 3) ,	(8 ,7)	(20 4) ,
debt Current , net	32 3 ,	56 6 ,	50 9 ,	28 9 ,
debt Non current	127 8 ,	98 ,5	97 8 ,	120 1 ,
derivatives & M&A debt MTM	(0 6) ,	(0 6) ,	0 2 ,	0 3 ,
IFRS 16 - Leases	12 8 ,	12 8 ,	13 ,5	14 2 ,
Net debt - EoP	161,1	161,1	153,7	143,1

• * Net Debt reported

• ** Net Debt pro-forma, amended agreements include covenant reset and €5,0 shareholder loan executed in April

Final comments confirm FY outlook

• Looking forward we have different visibility on the two Divisions:
• Metering provides positive outlook thanks to awarded tenders and positive cycle
• Heating & Ventilation is expected to recover by year-end showing a quarter-on-quarter improvement
• Management focus KPI is on EBITDA and NFP

FY 2024 outlook

• Metering business top line expected further increase at high single digit increase
• Heating & Ventilation is expected to recover over the course of the year, with the first quarter still down double digit and the second quarter expected to be down single digit, compared to the previous year. Visibility on H2 24 suggests an improvement as compared to the first part of the year
• EBITDA improvement will come from carry over of structural cost reductions (€2,0) and manufacturing footprint reorganization (€2,5)
• Consolidated EBITDA margin expected to improve between 100 e 200 bps
• Capex planned between €20 €25M
• Net debt expected between €140 €147

Regulatory statement

The manager responsible for the preparation of the company's accounts, Paul Fogolin, hereby declares, as per article 154 bis, paragraph 2, of the "Testo Unico della Finanza", that all information related to the company's accounts contained in this presentation are fairly representing the accounts and the books of the company.

Paul Fogolin Chief Financial Officer paul.fogolin@sitgroup.it

Investor Relations Mara Di Giorgio +39 335 773 7417 investorrelations@sitgroup.it

Disclaimer

This presentation has been prepared by SIT S.p.A. only for information purposes and for the presentation of the Group's results and strategies.

For further details on the SIT Group, reference should be made to publicly available information.

Since at the moment there is no existing reliable market research which provide the required level of detail, nor any official data, the statements of key information, the assessments concerning the positioning of SIT Group and the assessments regarding the market and the market segments of the reference market are based exclusively on assessments carried out by SIT's management, in accordance to its own knowledge of the market and its analysis of the data gathered. For such reason, these statements and assessments may not be updated and/or may also be quite approximate. Due to the lack of reliable and standardized data and of market data provided by third parties, these assessments are necessarily subjective and are provided, unless otherwise specified, by SIT on the basis of the analysis of the data it, as a company, has gathered. These evaluations and the performance of the industries in which SIT operates could prove to be different from those assumed due to the known and unknown risks, the uncertainties and other causes.

Statements contained in this presentation, particularly those regarding any SIT Group 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 SIT Group shall not be taken as an indication of future performance.

This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

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