Ariston N : 2023 COMPANY REPORT

2023 Company Report

Our Group

-

Sustainability Report

-

Methodology

2023 Company Report

Our Group ― Sustainability Report ― Methodology

Find out more at www.aristongroup.com

2023 COMPANY REPORT

1

Index

Letter to stakeholders	4
How to read this document	6

Our group	8
Our vision	10
Our mission	12
A global company with strong local roots	14
Who we are and what we do	16
The group by numbers	18
Global vision, local action	20
Our history	22
2023 highlights	24
Brands and products	26
Thermal comfort
Ariston	28
ELCO	30
Wolf	32
ATAG - Brink	34
NTI - Calorex	36
Racold - Domotec	36
Chromagen - HTP	40
Components	41
Burners	42

2

Sustainability Report	44
The European Taxonomy	46
The Group's Sustainability Journey	56
The path towards Road to 100	57
Road to 100: Main 2030 objectives	60
Solutions	62
Key challenges	64
Sustainable energy solutions	65
Smart homes for sustainable living	75
Operations	80
Key challenges	82
Resources productivity and circularity	83
Responsible supply chain	99
People & Communities	104
Key challenges	106
Excellent employee experience & engagement	107
Education for the future	119
Customers	124
Key challenges	126
Beyond customer proximity	127
Trustworthy quality excellence	137
Governance	140
Key challenges	142
Long-sighted sustainable governance	143

Methodology Note on methodology	162
Technical appendix	163
GRI content index	164
Notes	232

2023 COMPANY REPORT

3

LETTER TO STAKEHOLDERS

HOW TO READ THE DOCUMENT

OUR GROUP

SUSTAINABILITY REPORT

Driving our sustainable future

Dear Stakeholders,

NOTE ON METHODOLOGY

TECHNICAL APPENDIX

GRI CONTENT INDEX

NOTES

Paolo Merloni

Executive chairman

2023 marked a turning point in the history of Ariston Group - a multinational group that today approaches its 95th anniversary as a leading player in the sustainable thermal comfort industry, with more than 10,000 people worldwide and revenues exceeding 3 billion euros.

The year commenced with the completion of the acquisition of Wolf-Brink, which has been the biggest M&A in our history and is now effectively evolving into a transformative partnership. We have been focusing on seamless integration, collaborating with new colleagues across various workstreams while harmonizing our heritages and diverse cultures, in line with Ariston Group's spirit. As we build on our shared system of values, we capitalize on differences to reshape our organizations into one and lay the groundwork of the future of our group. I take pride in noticing that synergies generated to date already gave positive contribution to margins, and that Germany has driven our financial performance this year, corroborating the strength of our vision.

In March we released our ESG manifesto "Road to 100", defining clear-cut objectives in the fields of Solutions, Operations, People & Community, Customers and Governance, and shaping our sustainability roadmap to 2030. As the energy transition in the building sector is critical to reach Europe's decarbonization targets, we further invested in product innovation to accelerate this transformation

through our solutions and today with our unique, extensive portfolio of renewable and high-efficiency technologies we cover all our customers' needs for sustainable thermal comfort. Additionally, as a global manufacturer, we concentrated on progressively decarbonizing our operations, also by expanding the World Class Manufacturing methodology, focusing on production capacity and efficiency for strategic categories, and implementing the digital transformation across the entire value chain.

We then welcomed Maurizio Brusadelli as the new CEO of Ariston Group. He brought to the group his vision, as well as a wealth of experience and competencies acquired over the course of his robust career. Extending my deepest gratitude to Laurent Jacquemin for his 30+ years dedication, and as he assumed the role of a non-executive board member, I acknowledge how the solidity of our governance guaranteed a smooth succession. The strong cohesion of our Executive Team secured stability and maintained our strategic course. All our people - through their commitment, strategic focus, passion, entrepreneurship, and integrity - were the true protagonists of a special year of shared success.

Leveraging on our vision Sustainable Comfort for Everyone, we put significant steps in the driving of our future. From these standpoints, we look ahead remaining focused on our scale and profitability. Despite the challenges affecting some of our key markets, in

2023 we achieved an unprecedented net turnover of 3,092 billion euros, which represents a 30% year-over-year growth, factoring in the acquisitions of Wolf and Brink (+1% proforma). And we were able to protect margins, increasing our adjusted EBITDA by 38% year-over-year (+9% proforma) and delivering once again a double-digit adjusted EBIT.

Our vision is for the long term:

we will continue to pursue our profitable growth, elevating our organic ambitions while exploring inorganic opportunities consistent with our development strategy, to stay true to the commitment to our stakeholders.

I express my thanks to all individuals who have played a role in contributing to this collective journey.

Sincerely,

4

5

LETTER TO STAKEHOLDERS

HOW TO READ THE DOCUMENT

OUR GROUP

SUSTAINABILITY REPORT

NOTE ON METHODOLOGY

TECHNICAL APPENDIX

GRI CONTENT INDEX

NOTES

How to read this document

The Ariston Group's Company Report sets out key commitments and results achieved for the January to December 2023 reporting period. More specifically, the Report aims to provide a comprehensive description of qualitative and quantitative information which outlines the Group's effort in sustainability topics.

In order to facilitate the reading of this Report by the Group's stakeholders, the document is structured around three macro-sections which are illustrated below.

Our Group	Our Group	Presents the Group, focusing on its core business, historical
							milestones, key numbers and brands that make up the
							corporate portfolio.
Sustainability	European Taxonomy	Describes and explores the Ariston Group's contribution to the
Report		six European Taxonomy objectives, in terms of
							Taxonomy-eligible and aligned economic activities.
						The Group's	Describes the path towards the Road to 100, the Group's 2030
						Sustainability Journey	ESG Plan. 2023 marks one year since the Company's strategic
							plan has been issued.
							Provides a snapshot of the main 2030 objectives and ambitions
							for each of the Group's material topics, as defined in the
							Road to 100 plan.
						Road to 100 engagement areas	Material topics
						1. Solutions	• Sustainable energy solutions
						What we produce and sell	• Smart homes for sustainable living
						2. Operations	• Resources productivity and circularity
						How we produce and sell	• Responsible supply chain
						3. People & Communities	• Excellent employee experience & engagement
						The impact on communities
						• Education for the future
						we operate in
						4. Customers	• Beyond customer proximity
						The impact on our
						• Trustworthy quality excellence
						business stakeholder
						5. Governance	• Long-sighted sustainable governance
						Safeguard the way we do business
Methodology	Note on methodology	Explains the methodology used for the creation of the document,
							along with reporting scope and standard followed
						Technical appendix	Provides a thorough overview on all reported GRI standards and
							Disclosures, both from a quantitative and a qualitative perspective
						GRI content index	Enhances the usability of reported information and helps
							stakeholders navigate disclosures and see the information at a glance

6

2023 COMPANY REPORT

7

Our group 2023

LETTER TO STAKEHOLDERS	HOW TO READ THE DOCUMENT	OUR GROUP	SUSTAINABILITY REPORT	NOTE ON METHODOLOGY	TECHNICAL APPENDIX	GRI CONTENT INDEX	NOTES
Our vision	Our mission	A global company with strong local roots	Brands and products

OUR VISION

Sustainable comfort for everyone

Our purpose is to provide everyone, in every corner of the world,

with high-quality thermal comfort solutions, while protecting the environment.

LETTER TO STAKEHOLDERS	HOW TO READ THE DOCUMENT	OUR GROUP	SUSTAINABILITY REPORT	NOTE ON METHODOLOGY	TECHNICAL APPENDIX	GRI CONTENT INDEX	NOTES
Our vision	Our mission	A global company with strong local roots	Brands and products

LETTER TO STAKEHOLDERS	HOW TO READ THE DOCUMENT	OUR GROUP	SUSTAINABILITY REPORT	NOTE ON METHODOLOGY	TECHNICAL APPENDIX	GRI CONTENT INDEX	NOTES
Our vision	Our mission	A global company with strong local roots	Brands and products

LETTER TO STAKEHOLDERS	HOW TO READ THE DOCUMENT	OUR GROUP	SUSTAINABILITY REPORT
Our vision	Our mission	A global company with strong local roots	Brands and products

NOTE ON METHODOLOGY

TECHNICAL APPENDIX

GRI CONTENT INDEX

NOTES

WHO WE ARE AND WHAT WE DO

Ariston Group

THERMAL COMFORT

Service	Air-treatment
Water Heating	Heating

COMPONENTS

BURNERS

A global leader in thermal comfort and energy efficiency

16

All over the world, Ariston Group is synonymous with comfort, energy efficiency and respect for the environment, thanks to its renewable and high efficiency products, its plants run in compliance with the most advanced production standards and its excellent pre- and after-sales customer support services.

The Group has a leadership position in the global thermal comfort market for residential and commercial spaces through its strategic global brands

• Ariston, ELCO and Wolf - and its renowned regional and local brands. Components and burners, respectively marketed Thermowatt and Ecoflam, complete the offer.

THERMAL COMFORT

Strategic Global Brands

COMPONENTS

BURNERS

2023 COMPANY REPORT

17