Sit — Regulatory Filings 2020

Oct 15, 2020

Informazione Regolamentata n. 20105-66-2020		Data/Ora Ricezione 15 Ottobre 2020 11:19:58	MTA
Societa'	:	SIT S.P.A.
Identificativo Informazione Regolamentata	:	138109
Nome utilizzatore	:	SITN05 - Giulia Maso
Tipologia	:	REGEM
Data/Ora Ricezione	:	15 Ottobre 2020 11:19:58
Data/Ora Inizio Diffusione presunta	:	15 Ottobre 2020 11:19:59
Oggetto	:	Presentation of Janz acquisition
Testo del comunicato

Vedi allegato.

Janz Acquisition

Water Opportunity

Market Size and Smart Penetration

▪ North American market is the most advanced, with 52% of smart water meters installed

• ~118M water meters new installation in 2017²(of which 28M smart), 126M in 2019 (of which 31M smart) and 174M expected in 2024 (of which 64M smart)
• ~1/3 of installed base would be smart by the end of 2025²
• Smart Water Metering 10,3% growth rate up to 2024³ driven by:
  • ‐ Aging infrastructure and increasing water consumption
  • ‐ Governments/utilities initiatives to reduce non revenue water, accurate meter reading and development of smart city infrastructure
  • ‐ Residential segment is expected to grow faster also boosted by the need for billing accuracy

Water long-term perspective confirmed despite COVID-19

News Feed during COVID-19 period

Janz profile

Company overview

• Founded in 1915, Janz Water Group develops solutions for the water management market. The Company produces and distributes water meters (only Iberian player with fully integrated manufacturing process), water meter components and precision parts for other applications not related to water. The Group offers also water meter repair services
• Headquarters: Lisbon, Portugal
• Ownership: Family Ownership (100%)
• Product portfolio: volumetric meters, single-jet meters and multi-jet meters (also with the telemetry application "MyWater"), as well as chambers, registers and other components for OEMs
• Employees: approx. 250 FTE

Financial performance

Industrial footprint

▪ 1 production facility in Portugal

Lisbon, Portugal Headquarters Production plant (11.000 sqm)

Production Capacity:

• Meters ~500kpcs
• Registers ~1mpcs
• Volumetric chambers ~2mpcs

Transaction Perimeter and Financing

Growth opportunities and synergies

• In the next five years SIT Water Meters sales are expected to more than double the 2019 Janz sales:
  • Standalone/organic growth thanks to expansion in Latin America and communication technology penetration (higher value per meter)
  • Development of Ultrasonic meter and electronic register, leveraging SIT competences in electronics and communications technologies
• Current Janz EBITDA will more than double

Paul Fogolin Mara Di Giorgio Chief Financial Officer Investor Relations paul.fogolin@sitgroup.it +39 335 773 7417

investorrelations@sitgroup.it www.twin.services

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.

By attending or reading this presentation you agree to be bound by the foregoing terms.