De' Longhi S.p.A.: risultati primo trimestre 2024

Q1 2024 RESULTS

This presentation might contain certain forward-looking statements that reflect the company's current views with respect to future events and financial and operational performance of the company and its subsidiaries.

Forward looking statements are based on De' Longhi's current expectations and projections about future events. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments, many of which are beyond the ability of De' Longhi to control or estimate. Consequently, De' Longhi S.p.A. cannot be held liable for potential material variance in any looking forward in this document.

Any forward-looking statement contained in this presentation speaks only as of the date of the document. Any reference to past performance or trends or activities of De' Longhi S.p.A. shall not be taken as a representation or indication that such performance, trends or activities will continue in the future. De' Longhi S.p.A. disclaims any obligation to provide any additional or updated information, whether as a result of a new information, future events or results or otherwise.

This presentation does not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

The officer responsible for preparing the company's financial reports declares, pursuant to paragraph 2 of Article 154- bis of Legislative Decree no. 58 of February 24 1998, that the accounting information contained in this presentation corresponds to the results documented in the books, accounting and other records of the company.

Finally, it should be noted that 1st quarter figures are not subject to audit.

In this presentation:

• "Adjusted" stands for before non recurring items and notional cost of the stock option plans
• "At constant exchange rates" means excluding the effects of exchange rates' variations and of hedging derivatives
• "At constant perimeter" or "Organic" means excluding effects of the integration of the business combination between La Marzocco and Eversys;
• "ForEx" or "FX" stand for Foreign Exchange Rates;
• "M" stands for million and "bn" stands for billion;
• "Q1" stands for first quarter (January1st - March 31st);
• "NWC" stands for Net Working Capital;
• "Capex" stands for capital expenditures, i.e. investments in fixed assets.

revenues' growth %

9.4%

adjusted Ebitda % margin

14.2%

12 months Free Cash Flow	389 M€
(before dividends and M&A)

Net Financial Position

308 M€

The Q1-24 highlighted a trend continuity with the second part of last year, achieving an increase in organic turnover at constant exchange rates at a high single digit rate

Volume growth, together with partial improvements in industrial costs, allowed a further improvement in margins in the first quarter of this year

Excellent performance over the previous 12 months, mainly thanks to strong cash generation from operations

Strong positive financial position, even after the net absorption in relation to the closing of the professional coffee deal

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• The Group has expanded its turnover by close to 10% thanks to the strong organic growth realised in recent months and the one-month consolidation of the business combination in professional coffee.
• Group's revenues reached €658.8 million, showing a 9.4% increase compared to the previous year, thanks to a like-for-like growth of 5.9%, which was 7.3% at constant exchange rates.

• South-WesternEurope experienced organic growth of roughly 10%, in line with the main trends identified in the second half of 2023;
• North-EasternEurope witnessed significant organic revenue growth for the fourth consecutive quarter, reinforced by the high-teens performance in the early months of 2024. We observe the continuation of the favourable trend of the UK and Poland, with an acceleration in the Czech Republic, Slovakia, and Hungary area;
• the MEIA area has gone through a decline in turnover, which has been heavily influenced by a complex macro and geopolitical context;
• the Americas area achieved an increase in turnover of around 10%, thanks to the consolidation of La Marzocco and mid-single digit organic growth, supported mainly by the performance of the nutrition and food preparation sector driven by the expansion of Nutribullet's products;
• the Asia Pacific region, which was the only one to show growth in the Q1-23, maintains a turnover in line with 2023, highlighting a partial decline at an organic level, however growth was seen to be accelerating in countries like Australia and New Zealand.

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UP

double-digit

UP

single-digit

Down

7

UP

double-digit

UP

single-digit

Down

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• the net industrial margin stood at €335.4 million, equal to 50.9% of revenues, compared to 50.5% in 2023, benefiting from a positive effect of the mix and an easing of inflationary pressures on product costs;
• the Ebitda adjusted was €93.8 million, or 14.2% of revenues compared to 12.3% the previous year. The expansion of volumes, a further partial easing of inflationary pressures on some industrial costs and an investment in media and communication in line respect to 2023 (A&P on revenues at 11.2%), have supported an improvement in margins, despite an increase in labour costs and organizational structures.

among others:

• flat A&P investments,
• lower logistic and industrial costs.

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