Ariston N : Q1 2023 ANALYST PRESENTATION

2023 FIRST QUARTER RESULTS

May 3rd, 2023

ANALYST PRESENTATION

OUR KEY INVESTMENT THESIS … AND HOW IT PLAYED OUT IN Q1 2023

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CHAMPION OF

SUSTAINABLE

COMFORT ACROSS ALL

STAGES OF THE

ENERGY TRANSITION

• Strong trend in HHP and HPWH sales, on the back of the energy transition trend in Europe
• Demand for high-efficiency fossil fuel products in Europe also sustained in view of upcoming bans

UNIQUELY BALANCED

COMMITMENT TO

BOTH HOT WATER

AND HEATING

• Increasing synergies and appeal for fully sustainable solutions
• Water-heatingtechnology diffusion facilitated by adoption of heating heat pumps in Europe
• Hot water: mixed performance in high-potential markets, early sales of HPWH in US

GLOBAL FOOTPRINT OF	PROFITABLE GROWTH	SOLID FINANCIAL
40+ MARKETS	COMBINING STEADY	PERFORMANCE AT TOP-
SUPPORTED BY AN	ORGANIC EXPANSION	AND BOTTOM-LINE,
INTEGRATED AND AGILE	WITH PROVEN M&A	LEAN BALANCE SHEET
INDUSTRIAL BACK-END	TRACK RECORD
• Supply-chain disruptions -	• Organic headwinds due to	• Total growth ca. +38%
mainly in US heating and Wolf	regulatory changes on	• 9.6% margin on EBIT Adjusted,
- mitigated by distributed,	incentive mechanism in Italy
centrally-managed	• Newly added business in	+0.5pts vs Q1'22
procurement	• Negative FCF due to
• Production resumed (almost)	Germany accelerating beyond
expectations	seasonality, though
in full at flooded plants	• Wolf-Brink integration	significantly better than Q1'22
	progressing as planned

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NEW IN Q1 2023

USA HEAT PUMP WATER HEATERS

• Launch of the first American Standard HPWH in USA
• Production line in Mexico
• Available in 50 & 80 gal size
• Demand-Responseready
• High efficiency and low noise
• Integrated leak sensor and optional shut-off valve

• Aqua Comfort link mobile APP

WOLF HIGH-POWER MONOBLOCK R290 HEAT PUMP CHA-16/20

• Extension of the product range of the very successful CHA-07 & CHA-10
• High power output, perfectly suited for renovation requirements of single family homes and small multifamily buildings
• Fastest-growingsegment in German heat pump market (+113% in '22)
• Natural & environmentally friendly refrigerant R290 allows higher flow temperatures - makes it very well suited for existing buildings with radiators
• A benchmark in performance, efficiency, sound level and dimensions

"EXPERT SERVICE" AFTER-SALES TOOL FOR SERVICE CENTERS

• New digital tool for our service centers network, all key after-sales processes with one entry point for our partners
• Designed with customer-centric approach, aims at doing business with Ariston easier
• Technicians can register interventions, activate extended warranty contracts and get technical information on the go, thanks to the innovative APP available on all mobile stores

INDIA NEW STORAGE & MICROSTORAGE PLATFORMS

The Indian offer has been completely renewed with:

• Maximum ("five-star") energy efficiency rating
• New sophisticated aesthetic
• New advanced functions and improved usability, including temperature control for

the first time in the microstorage category 1,3,6 liters in India

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Q1 2023 NET REVENUE BY DIVISION

€M	Q1 2023	Q1 2022	Change		o/w M&A
Thermal Comfort	713.6	507.7	+40.5%	188.3
Burners	22.4	21.8	+2.3%
Components	23.7	22.5	+5.4%
Total	759.7	552.1	+37.6%		188.3

K E Y C O M M E N T S

• Like-for-likegrowth generally driven by price (mostly carryover from 2022) and mix
• Thermal comfort: growth driven by heating in central European countries (both Wolf and Elco), headwinds in Italy after change in incentive mechanism
• Burners: mix change and customised solutions fully compensate for missing Russian business and drop in oil burners for residential heating
• Components: continued satisfactory trend driven by growth in Professional segment
• Organized integration effort of Wolf-Brink proceeding well amidst very strong business growth
• Pro-formagrowth (including Wolf-Brink in 2022) stands at +7%

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Q1 2023 NET REVENUE BY AREA

€M	Q1 2023	Q1 2022	Change		o/w M&A
 Europe	570.0	357.2	+59.6%	186.6
 Americas	67.9	71.3	-4.9%
 Asia/Pacific & MEA	121.9	123.6	-1.4%	1.8
Total	759.7	552.1	+37.6%		188.3

K E Y C O M M E N T S

• Continuing growth momentum in Europe driven by Wolf-Brink and also +7% organic
• Americas negative despite favourable FX, due to weak market demand in both heating and water-heating, and supply chain issues on heating
• Asia/Pacific & MEA slightly negative due to missing contribution of Turkey & Egypt. FX headwinds in some key markets
• Overall FX tailwinds of ca. 1% in the quarter

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