ELICA S.p.A. BoD APPROVES 9M 2018 CONSOLIDATED RESULTS: CONTINUED SALES AND MARGIN GROWTH BUILDS ON 7 PREVIOUS QUARTERS

PRESS RELEASE

ELICA S.p.A. BoD APPROVES 9M 2018 CONSOLIDATED RESULTS

CONTINUED SALES AND MARGIN GROWTH

BUILDS ON 7 PREVIOUS QUARTERS

9M 2018 Key Financial Highlights:

• • Revenue: Euro 355 million, +4.0% on the same period of previous year, net of currency effect and changes to consolidation scope1 (-0.7% reported);

• • Own brand product sales, including the Elica brand, continue to grow (+12.7% at like-for-like exchange rates in 9M 2018);

• • EMEA OEM sales slow in third quarter amid forecast drop in market demand in the quarter;

• • Adjusted EBITDA2: Euro 29.4 million, up 8.2% on 9M 2017 (Euro 27.2 million), with the margin rising to 8.3% from 7.6% in the same period of 2017 and further improving to 8.4% in the third quarter, as a result of the volumes mix and operational streamlining despite the currency effect;

• • Adjusted EBIT2: Euro 14.3 million, up 23.3% on 9M 2017 (Euro 11.6 million);

• • Adjusted Net Profit attributable to Group2: Euro 5.2 million, more than doubling on Euro 2.1 million in 9M 2017. Net Profit attributable to the owners of the Parent: Euro 2.2 million, improving on a loss of Euro 2.9 million for 9M 2017;

• • Net Financial Position: Euro 66.5 million, compared to Euro 69.3 million at December 31, 2017, featuring considerably improved operating cash which offsets investments and the benefit of Euro 10.2 million deriving from the sale of 33% of the Indian subsidiary in the third quarter of the year;

Milan, October 30, 2018 - The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of kitchen range hoods, has today approved the Interim Report at September 30, 2018, prepared in accordance with IFRS.

• 1 Net of the contribution of the German subsidiary Exklusiv-Hauben Gutmann, sold on August 28, 2017.

• 2 Net of the extraordinary accrual of Euro 4 million in H1 2018 (Euro 3 million net of the tax effect) considered necessary in view of the opening of preliminary voluntary insolvency proceedings at the German ex-subsidiary Exklusiv Hauben Gutmann GmbH, against whom Elica S.p.A. has a non-current commercial receivable, arising before the disposal.

***

"The 9M results indicate further own brand product sales and operating margin growth." - stated Antonio Recinella, Chief Executive Officer of Elica - "Marketing and communication spend in support of growth have continued, in line with our objective to increasingly focus on own brand product sales and with a goal of reaching over 55% of the total over the medium-term. OEM sales in EMEA weakened in the third quarter and could continue also in the fourth quarter of the year. The improved mix, on the other hand, drove the operating margin, up over 70bp to 8.4% in the third quarter compared to the same period of 2017. Finally, we highlight the generation of cash from the operation agreed in India with Whirlpool, whose results are beginning to materialise".

***

Consolidated Revenue - 9M 2018

In the first nine months of 2018, Elica returned consolidated revenue of Euro 355 million, a slight reduction (-0.7%) on the same period of the previous year, with growth of 4.0% net of the currency effect and the changes to the consolidation scope1, following the sale of the German subsidiary Exklusiv-Hauben Gutmann on August 28, 2017.

Market demand suffered a setback in the third quarter (-2.0%), reducing growth forecasts for the first nine months of 2018 to +0.2% over the same period of the previous year. In particular, EMEA market demand dropped 3.1%, mainly due to developments in Western Europe (principally on the French, English and German markets). The Americas reported growth of 2.0% for Q3 2018, with the gap between North America (+2.5%) and Latin America (+1.2%) remaining, while the Asian markets contracted 2.0% on the back of the Chinese sector slowdown.

In the first nine months of 2018, net of the currency effect and at like-for-like consolidation scope, revenues grew (+4%) - driven by increased own brand sales (+12.7%) accelerating in the third quarter to 14.9%.

The cooking segment's contribution to own brand product sales rose to 48% in the first nine months of 2018 and was 50% in the third quarter of the year.

The Motors business, representing 14% of total revenue, was up 2.4% in the first nine months of the year, driven by the heating and ventilation segments. This growth slightly slowed in the third quarter in view of EMEA sector developments.

1

Net of the contribution of the German subsidiary Exklusiv-Hauben Gutmann, sold on August 28, 2017.

OEM revenues reduced 4.6% on the first nine months of 2017 (-2.4% net of the currency effect). EMEA revenues further slowed in the third quarter, partly due to the forecast contraction in demand.

Elica continues to increasingly focus on own brand products.

For completeness, the breakdown of consolidated revenue by geographic areas of the Group companies is reported below.

INCOME STATEMENTAsia and the Rest ofEurope

The Americas

WorldUnallocated and eliminations

Consolidated

In thousands of Euro

9M 18

9M 17

9M 18

9M 17

9M 18

9M 17

9M 18

9M 17

9M 18

9M 17

Segment revenue:

Third parties

Inter-segment

Total revenue

260,628 12,500 273,128

• 262,783 51,684

  53,513

• 10,719 40

• 273,502 51,724

187 53,699

42,636 6,500 49,136

41,366 4,210 45,576

109

72

355,057

357,733

(19,040)

(15,116)

-

(18,931)

• (15,044) 355,057

- 357,733

Profitability - 9M 2018

Adjusted EBITDA2 of Euro 29.4 million (8.3% of Net revenue) was up 8.2% on 9M 2017. The improving operating margin benefited from higher prices and the improved mix (growth of own brand sales), which more than offset increasing raw material prices and brand and new product marketing costs, in addition to reduced OEM sales.

The Adjusted EBIT2 of Euro 14.3 million grew 23.3% on Euro 11.6 million for the same period of 2017. This result reflects the business dynamics outlined above.

The Adjusted Net Profit attributable to the Group2 of Euro 5.2 million was up on Euro 2.1 million for the first nine months of 2017, thanks principally to the developments outlined above.

2

Net of the extraordinary accrual of Euro 4 million in H1 2018 (Euro 3 million net of the tax effect) considered necessary in view of the openingof preliminary voluntary insolvency proceedings at the German ex-subsidiary Exklusiv Hauben Gutmann GmbH, against whom Elica S.p.A. has a non-current commercial receivable, arising before the disposal.

9M 18	% revenue	9M 17	%	18 Vs 17%
In Euro thousands	revenue
Revenue	355,057	357,733	(0.7%)
Adjusted EBITDA*	29,436	8.3%	27,202	7.6%	8.2%
EBITDA	25,436	7.2%	25,667	7.2%	(0.9%)
Adjusted EBIT*	14,282	4.0%	11,585	3.2%	23.3%
EBIT	10,282	2.9%	10,050	2.8%	2.3%
Net financial charges	(3,284)	(0.9%)	(4,086)	(1.1%)	19.6%
Subsidiary disposal charges	0	0.0%	(3,908)	(1.1%)	(100.0%)
Income taxes	(2,916)	(0.8%)	(4,564)	(1.3%)	36.1%
Profit from continuing operations	4,082	1.2%	(2,508)	(0.7%)	262.8%
Adjusted Profit for the period *	7,082	2.0%	2,559	0.7%	176.8%
Profit for the period	4,082	1.2%	(2,508)	(0.7%)	262.8%
Profit attribut. to the owners of the Parent - Adjusted*	5,170	1.5%	2,153	0.6%	140.2%
Profit attributable to the owners of the Parent	2,170	0.6%	(2,914)	(0.8%)	174.5%
Basic earnings per share on continuing operations and
discontinued operations (Euro/cents)	3.50	(4.70)	174.5%
Diluted earnings per share on continuing operations and
discontinued operations (Euro/cents)	3.50	(4.70)	174.5%
(*) see definitions and reconciliations
Statement of Financial Position

The Net Financial Position at September 30, 2018 was Euro 66.5 million, improving on Euro 69.3 million at December 31, 2017 and Euro 76.2 million at September 30, 2017, thanks to the sale of 33% of the Indian subsidiary and a generation of operating cash which offset the investments in support of development.

Operating activities in the first nine months of 2018 generated cash of Euro 19.1 million, compared to Euro 16.4 million in the same period of 2017 (+16.4%) - generating in fact stronger cash than investing activities.

In Euro thousands	Sep 30, 18	Dec 31, 17	Sep 30, 17
Cash and cash equivalents	32,116	34,873	25,288
Finance leases and other lenders	(32)	0	(20)
Bank loans and borrowings	(40,048)	(57,040)	(60,300)
Current loans and borrowings	(40,080)	(57,040)	(60,320)
Finance leases and other lenders	0	(33)	0
Bank loans and borrowings	(58,547)	(47,121)	(41,118)
Non-current loans and borrowings	(58,547)	(47,154)	(41,118)
Net Financial Position	(66,511)	(69,321)	(76,150)
Assets for derivatives	(0)	1,014	1,084
Liabilities for derivatives (current)	(1,569)	(749)	(535)
Liabilities for derivatives (non-current)	0	(75)	(153)
Net Financial Position - Including Derivatives Effect	(68,080)	(69,132)	(75,754)

Managerial Working Capital on annualised revenue of 6.4% reduced on 7.6% at September 30, 2017.

In Euro thousands	Sep 30, 18	Dec 31, 17	Sep 30, 17
Trade receivables	65,564	75,923	82,522
Inventories	78,813	73,298	75,455
Trade payables	(114,312)	(120,541)	(121,687)
Managerial Working Capital	30,065	28,680	36,290
% annualised revenue	6.4%	6.0%	7.6%
Other net receivables/payables	(8,516)	(14,682)	(12,263)
as a % of annualised revenue	-1.8%	-3.1%	-2.6%
Net Working Capital	21,549	13,999	24,028
% annualised revenue	4.6%	2.9%	5.0%

Significant events in the first nine months of 2018 and subsequent to September 30, 2018

On February 12, 2018, the Board of Directors of Elica S.p.A. approved the additional periodic disclosure for the fourth quarter of 2017, prepared according to IFRS.

On the same date, the Group, following the changes to the consolidation scope as a result of the disposal of the company Exklusiv-Hauben Gutmann GmbH realigned the 2017-2019 Plan Objectives. In addition, the Board of Directors of Elica S.p.A., in line with the Shareholders' Meeting motion of April 28, 2017, launched the third cycle of the 2016-2022 Phantom Stock & Co-investment Plan, identifying the Beneficiaries of the 2018-2020 Plan cycle and the relative performance objective parameters, in line with the Disclosure Document published on March 28, 2017 and available on the website of Elica S.p.A., to which reference should be made for greater details of the Plan.

On the same date, the Board of Directors of Elica S.p.A. called the Shareholders' AGM.

On March 15, 2018, the Board of Directors of Elica S.p.A approved the 2017 Consolidated Financial Statements and the Directors' Report, and the 2017 Separate Financial Statements of Elica S.p.A. and the Directors' Report, prepared in accordance with IFRS. The Board in addition approved the consolidated non-financial disclosure ("NFD") prepared in accordance with Legislative Decree No. 254/2016. The NFD outlines Group operations, its performances, results and the impact in terms of environmental, social, personnel, human rights and anti-active and passive corruption aspects.

On April 27, 2018, the Shareholders' AGM of Elica S.p.A. approved the separate financial statements of Elica S.p.A. at December 31, 2017, the Directors' Report, the Board of Statutory Auditors' Report, the Independent Auditors' Report and noted the consolidated results of the company for 2017.

The Shareholders' AGM of Elica S.p.A. also approved:

• o coverage of the FY 2017 loss through use of "Retained Earnings".

• o appointment of the Board of Directors, who will remain in office for the years 2018, 2019 and 2020, until the Shareholders' AGM called for the approval of the 2020 Annual Accounts, which shall consist of eight members. The Directors, nominated in the slate filed by the majority shareholder FAN Srl, holding 52.81% of the share capital, and approved by a 99.9% majority were: