De' Longhi spa: 2022 Shareholders’ Meeting

The Shareholders' Annual General Meeting, held today in ordinary session:

i. approved the consolidated 2021 results, as per the proposal approved by the Board of Directors on March 10, 2022:

in the 12 months:

•  revenues up 37% to € 3,221.6 million (+ 24.3% on a like-for-like basis1);

•  adjusted1 Ebitda at € 515 million, up 16% of revenues from 15.6% (€ 456 million on a like-for-like basis);

•  net profit of € 311.1 million, up 55.4%, and equal to 9.7% of revenues (€ 258.7 million, up 29.2% on a like-for-like basis);

•  positive net financial position of € 425.1 million, improving by € 197.1 million;

• ii. approved the distribution of a dividend of € 0.83 per share: the AGM has approved the distribution of a dividend of € 0.83 per share, for a total amount of approx. € 124 million (on the basis of data available as of today), payable starting from May 25, 2022, with coupon detachment on May 23 and with the record date pursuant to art. 83-terdecies of Legislative Decree no. 58/98 on May 24, equal to a pay-out ratio of 40% of the net income per share (excluding treasury shares).

• iii. approved the Remuneration Policy for the year 2022 and expressed a favourable opinion on the remunerations paid in the year 2021;

• iv. renewed the authorization to purchase and dispose of treasury shares;

• v. renewed the Board of Directors and the Board of Statutory Auditors for the three-year period 2022-2024.

1 "Adjusted" stands for excluding non-recurring income / charges and the notional cost of stock option plans. In some cases, data "on a like-for-like basis" are also presented, ie excluding Capital Brands and Eversys from the scope of consolidation.

2021 has been a year still characterized by the complexities associated with a pandemic that on a global level continued to affect the dynamics of consumption and above all the structure of trade flows, with serious impacts on the cost of raw materials, on the availability of components and finished products and on transport costs.

However, never before has the Group achieved such flattering results as in 2021, crossing the threshold of 3 billion Euros in turnover and 500 million Euros of adjusted Ebitda, with a net financial position that, leaving behind the acquisitions of Capital Brands and Eversys, reached € 425 million, thus providing a fundamental basis for continuing with the investment strategy by internal lines and, if necessary, also by external lines.

The dynamics of the structural trends of the Group's main core segments, in coffee and food, were solid and responsive to investments in communication and marketing, which grew by over 100 million Euros in the year, and culminated in the first global campaign with Brad Pitt in role of Ambassador of the De' Longhi brand in the coffee segment.

Furthermore, the price management strategy, launched in 2019, contributed, together with the mix, to the protection of the industrial margin, with a positive effect of € 121.4 million (considering only the constant perimeter).

In 2021, revenues grew by 37%, reaching € 3,221.6 million.

The fourth quarter contributed to this performance which, from the point of view of the underlying trends, was in line with the rest of the year, closing with growth of 22.1%.

2 The annual financial report for the year 2021 was drawn in the electronic format XHTML in accordance with the Delegated Regulation (EU) 2019/815 (the so-called ESEF Regulation); with the approval of the consolidated financial statements, the related markings in XBRL were also approved.

On a like-for-like basis, growth stood at a double digit rate both in the year and

in the quarter, with revenues of € 2,922.1 million (+ 24.3%) in the 12 months and of € 978.3 million (+11.4 %) in the quarter.

The acquired Capital Brands and Eversys contributed to the growth by bringing revenues of € 299.5 million in the year and of € 93.8 million in the quarter, in line with management expectations.

(Eur million)

2021

Constant perimeter

Change of perimeter

2020

Revenues	3,221.6	2,922.1	299.5	2,351.3
change %	37.0%	24.3%
Ebitda adjusted	515.0	456.0	59.0	366.5
% of revenues	16.0%	15.6%	19.7%	15.6%

Finally, the currency component (including hedging management) subtracted approximately 1.4 percentage points of growth from revenues during the year (with a negative exchange rate and hedging effect of approximately € 31 million), but with a limited impact on adjusted EBITDA (negative effect of € 2.3 million).

In the twelve months all the geographical macro-regions showed double-digit growth.

EUR million

South West Europe North East Europe EUROPE

1,209.9

823.0 2,033.0

Americas

346.5

MEIA (MiddleEast/India/Africa)

175.0

Asia-Pacific

367.7

TOTAL REVENUES at constant perimeter

2,922.1

27.0% 23.7% 25.6% 33.3% 46.4% 9.2% 25.2%

393.3 301.6 694.9

• 13.0% 13.0%

• 11.6% 10.3%

  109.6

  34.4

  139.4

  978.3

• 12.4% 11.8%

• 23.4% 19.1%

• -22.2% -27.7%

• 9.9% 7.1%

• 11.4% 9.9%

At a constant perimeter level:

• • South-western Europe achieved double-digit performance in both the twelve months and the fourth quarter, thanks to an important contribution from the main countries in the area, such as Germany, France, Italy and the Iberian region;

• • similarly the area of north-eastern Europe grew double-digit in the year and in the quarter. More specifically, almost all the countries in the region achieved double-digit growth in the twelve months, maintaining a significant pace of expansion even in the final quarter of the year. In the 12 months, the weight of Russia and Ukraine on total revenues was 4.9%, equal to € 159.1 million;

• • the MEIA region recorded a growth trend in the twelve months of 42.9%, higher than the Group average, thanks to the positive contribution of all the countries in the area, but declining in the fourth quarter;

• • the America region continued to expand, achieving significant double-digit growth - also confirmed by the growth in the fourth quarter - supported by a significant acceleration in the coffee segment;

• • finally, the Asia Pacific region achieved growth of 10.3% in the 12 months, thanks to a double digit rate expansion in the main markets such as China and Hong Kong, Australia and New Zealand and South Korea. It's worth noting how the double digit growth rate of China and Hong Kong accelerated in the fourth quarter, thus supporting the expansion of the entire region (up 9.9% in the quarter).

As regards the product segments, on a like-for-like basis, 2021 saw sustained, double-digit growth in both coffee and food preparation, driven by the main product families: from super-automatic espresso coffee machines to manual machines, from Kenwood's kitchen machines to Braun's blenders. Overall, the two aforementioned segments accounted for 82% of revenues on a like-for-like basis.

The coffee segment, in particular, once again confirmed the strength of the underlying structural trend, also thanks to the launch of new products and the success of the global communication campaign, launched in early September, which sees Brad Pitt as the De' Longhi brand's ambassador.

The food preparation sector also confirmed a good performance, especially in the most representative categories of kitchen machines and handblenders, while some minor categories showed signs of decline in the last quarter.

Less pronounced were the segments of comfort (portable air conditioning and heating), which grew mid-single-digit over the year, and home care (cleaning and ironing), stable over the year, both declining in the fourth quarter.

Looking now at the evolution of operating margins over the 12 months:

•  the net industrial margin, equal to € 1,600.2 million, improved from 49.2% to 49.7% of revenues, despite the inflationary pressure on some important cost items, the impact of which was offset by production efficiencies and the positive contribution of price-mix (equal to € 121.4 million on a like-for-like basis);

•  adjusted Ebitda amounted to € 515 million (+ 40.5%), equal to 16% of revenues (compared to 15.6% in 2020), a result even more eloquent considering the increase in investments in communication and marketing

which, on a like-for-like basis, went from € 292.8 to € 395.1 million (from 12.5% of revenues to 13.5%);

• • Ebitda was € 480.6 million (+ 40.1%), or 14.9% of revenues (14.6% in the previous year);

• • Ebit was € 386.9 million, up by 47.7%;

• • finally, net income was € 311.1 million, equal to 9.7% of revenues and up by 55.4%.

In the fourth quarter, margins, supported by double-digit growth in revenues, had to absorb an acceleration in the rise of transport costs and a greater push in communication and marketing activities, typical of the fourth quarter and also due to the launch of the global Ambassador campaign (16.6% of revenues, from 14.6% in 2020, on a like-for-like basis). In the quarter, adjusted EBITDA was in line with the previous year in value, but down as a percentage of revenues from 18% to 14.7%.

We report the presence, among non-recurring charges, of the amount of € 11.2 million paid to Group employees as an extraordinary bonus for the commitment and extraordinary dedication shown in a year of great complexity. In addition, non-recurring charges include a review, in relation to the recent geopolitical crisis in Ukraine, of the valuation of some current assets of the working capital held at the balance sheet date, for a negative amount of approximately € 10 million.

EUR million

operating NWC

Net Equity

1,570.6

1,267.4 303.2

Net Financial Position

425.1

228.0 197.1

Net Bank Position operating NWC / Revenues

505.9

303.8 202.1

6.5%

10.5% -4.0%

EUR million

Net Cash Flow

197.1 -49.8

Dividends paid

-80.8 -80.8

Cash Flow from acquisitions

-129.4 -333.3

Free Cash Flow before dividends and acquisitions

407.4 364.3