Carel Industries S p A : Update on the activities of the CAREL Group production plants located in Italy

Press Release

Update on the activities of the CAREL Group production plants located in Italy

Brugine, 9 March 2020 - On the night between 7th and 8th of this month a Decree has been published by the Italian's Prime Minister Office containing rules intended to stem the spread in Italy of the emergency linked to COVID-19 (Coronavirus). Among the most significant measures is the limitation for people to move to and from several provinces of Northern Italy, including Padua and Milan where the Group's Italian plants are located as well as the Group's Italian headquarter (the latter is located in Brugine, about 20 kilometers from Padua).

The CAREL Group had already launched in recent weeks a series of initiatives in its own offices and in those of its Italian subsidiaries (Recuperator SpA), aimed primarily at limiting both employee commuting and the number of employees inside the workplace and this in order to decrease infections likelihood. This was mainly implemented through the so-called"Smart-working", that is, the opportunity of working from home for two days a week, an opportunity that currently about 80% of white-collars can take advantage of. To this must be added a series of other measures including the substantial ban on travel abroad and the reduction of visits by external visitors only to cases of actual need.

These initiatives are perfectly consistent also with the new Decree issued by the Government and will therefore be maintained and, if necessary, further reinforced in the coming days. At the moment, in any case, the full operation of all Italian plants is confirmed.

Besides, please note that yesterday, March 8th, an explanatory note of the aforementioned Decree was published by the Ministry of Foreign Affairs and International Cooperation in which it is specified that: "the goods can enter and leave the territories concerned. The transport of goods is considered as a work requirement: the personnel who drives the means of transport can therefore enter and leave the territories concerned and move within them, limited to the needs of delivery or collection of the goods. "

CAREL is highly focused on the management of this emergency and will put in place all the necessary measures in order to better protect the health of its employees both in Italy and abroad.

For further information:
INVESTOR RELATIONS	MEDIA RELATIONS
Giampiero Grosso - Investor Relations Manager	Barabino & Partners
[e-mail]	Fabrizio Grassi
[phone]	[e-mail]
	[phone]
	Francesco Faenza
	[e-mail]
	[phone]
	***

CAREL

The CAREL Group is a leader in the design, production and global marketing of technologically advanced components and solutions for excellent energy efficiency in the control and regulation of heating, ventilation and air conditioning ("HVAC") and refrigeration equipment and systems. CAREL is focused on several vertical niche markets with extremely specific needs, catered for with dedicated solutions developed comprehensively for these requirements, as opposed to mass markets.

The Group designs, produces and markets hardware, software and algorithm solutions aimed at both improving the performance of the units and systems they are intended for and for energy saving, with a globally recognised brand in the HVAC and refrigeration markets (collectively, "HVAC/R") in which it operates and, in the opinion of the Company management, with a distinctive position in the relevant niches in those markets.

HVAC is the main Group market, representing 66% of the Group's revenues in the financial year ended 31 December 2019, while the refrigeration market accounted for 33% of the Group's revenues.

The Group commits significant resources to research and development, an area which plays a strategic role in helping it maintain its leadership position in the reference HVAC/R market niches, with special attention focused on energy efficiency, the reduction of the impact on the environment, trends relating to the use of natural refrigerant gases, automation and remote connectivity (the Internet of Things), and the development of data driven solutions and services.

The Group operates through 24 subsidiaries and nine production plants located in various countries. As of 31 December 2019, approximately 80% of the Group's revenue was generated outside of Italy and 30% outside EMEA (Eruope, Middle East, Africa).

Original Equipment Manufacturers or OEMs - suppliers of complete units for applications in the HVAC/R markets - make up the main category of the Company's customers, on which the Group focuses to build long-term relationships.