Elica S p A : 2020 Consolidated Results

PRESS RELEASE

ELICA S.P.A BOARD OF DIRECTORS APPROVES 2020 CONSOLIDATED RESULTS AND

2020 SEPARATE FINANCIAL STATEMENTS

AND CALLED THE SHAREHOLDER'S MEETING

THE PATH TOWARDS COMPETITIVENESS AND GROWTH CONTINUES

2020 consolidated financial highlights:

• • Revenue: Euro 452.6 million, -5.7% on the previous year (-4.4% net of the currency effect) due to COVID-19 and the lockdown, particularly in the second quarter of the year.

• • The Cooking segment overall declined 6.6% (-2.1% own brand sales and -11.4% OEM), mainly due to the drop in volumes in April, with a recovery by Q3 2020 and double-digit growth in Q4 - both for own brand sales of 18.6% (+22.4% net of the currency effect) and for the OEM channel of 13.9% (+17.1% net of the currency effect). Own brand sales account for 55% of Cooking segment sales in 2020.

• • The Motors segment, thanks to significant Q4 growth (+11.4% on Q4 2019), fully recovered the slowdown in demand in March and Q2, closing up 0.3% on 2019.

• • The EMEA and Americas markets saw significant recoveries from Q3, with further consolidation in Q4 2020 (+18.0% and +6.8% on Q4 2019). The Asian market, which in the third quarter was again impacted by the COVID-19 health emergency, significantly recovered in the final part of the year (+14.1% on Q4 2019).

• • Adjusted EBITDA1: Euro 42.2 million, down 6.3% on Euro 45.0 million in 2019, due to COVID-19 and the Q2 2020 lockdown. The margin on revenue was 9.3%, substantially in line with the previous year (9.4% in 2019).

• • Adjusted EBIT1 of Euro 15.9 million (Euro 19.6 million in 2019), with a revenue margin of 3.5% (4.1% in 2019).

• • The Adjusted Net Profit was Euro 8.5 million, compared to Euro 9.3 million in 2019. The Adjusted Group Net Profit was Euro 2.6 million, compared to Euro 5.0 million in 2019. The Minorities profit of Euro 5.9 million increased on Euro 4.3 million in 2019, mainly due to the flexibility of Elica's business model in India and Japan, which has protected margins despite pressure on revenue.

• • Net Financial Position2: Euro -51.4 million (excluding IFRS 16 effect for Euro -9.7 million), compared to Euro -47.2 million at December 31, 2019. The increase, partially contained by an approx. 37% decrease in CAPEX, was mainly due to the EBITDA impact in Q2 on operating cash generation and a one-off cash-out of Euro 4.9 million, for the settlement between Elica

1 The figure for 2020 was adjusted considering the extraordinary effect related to Brazil for Euro 0.7 million, related to the closure of the dispute with Esperança Real S/A (Brazil) and other restructuring charges of Euro 2.6 million. The adjustment to the 2019 result concerns the extraordinary charge for the departure of the Chief Executive Officer of approx. Euro 1.3 million and other restructuring charges for a total of Euro 2.6 million. At EBIT level, the extraordinary effect of the impairment of intangibles of Euro 1.8 million was also normalised for 2020.

2 The value indicated is net of the IFRS 16 effect, as outlined in the reconciliation tables.

S.p.A. and Esperança Real S/A (Brazil) in July 2020, in addition to a further Euro 2.6 million of restructuring charges in Italy and China.

• • COVID-19 update:

  • o In order to effectively handle the COVID-19 emergency, the Elica Group immediately put in place all available worker protection measures and set up a Crisis Committee to monitor the developing situation. This Committee meets periodically and coordinates daily with the Leadership Team.

  • o Since April 23, 2020, the Company has begun to reopen in a gradual manner the factories in the Marche region - at Mergo and Cerreto - which were closed from March 24, 2020 following the imposition of restrictions by the government through the Presidential Decree of March 22, 2020. The Castelfidardo facility (Motors Division), as covered by a permitted ATECO code, was however authorised to continue its operations and therefore was not subject to closure. The Polish facility has been operative since April 19, 2020 with the Mexican facility resuming from June 1, 2020 and the Indian plant from May 18, 2020. All production facilities are currently at full capacity.

• • ESG update:

  • o The average number of training hours provided to blue-collar staff increased from 9.8 in 2019 to 10.7 in 2020 (+9.2% vs 2019);

  • o The under-represented gender accounted for 24% of the LTI - Long Term Incentive System (compared to 5% in 2019);

  • o The executive category waived the 2020 bonus and middle management contributed by waiving 50% of the nominal amount due;

  • o All Cooking Business Unit sites (Fabriano, Mergo and Cerreto d'Esi) have achieved ISO 45001:2018 certification. The number of injuries in Italy dropped from 6 in 2019 to 1 in 2020 (-83%);

  • o The Customer Orientation of our After Sales Support Service has been recognised by our customers with its receipt of the major sector award presented by the German Institute for Quality and Finance (ITQF);

  • o Elica is efficiently employing energy resources for its production processes and has reduced emissions (reduction at the Italian and Polish sites for kWh/machine hour of between 2% and 4% compared to 2019).

• • Resolutions on the allocation of the net result.

• • Shareholders' Meeting call

• • Corporate Governance and Ownership Structure Report, Remuneration Policy and Report as per Article 123-ter, Legislative Decree 58/98 and the Non-Financial Report for 2020 approved.

• • Illustrative Report to the Shareholders' Meeting for the appointment of the Board of Directors and establishment of remuneration and Illustrative Report to the Shareholders' Meeting for the appointment of the Board of Statutory Auditors and the establishment of remuneration approved.

• • Directors' Report concerning the purchase and utilisation of treasury shares proposal approved.

• • Third Cycle of the 2016-2022 Phantom Stock & Voluntary Co-investment Plan finalised.

Fabriano, March 16, 2021 - The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of cooker hoods, has today approved the 2020 consolidated results at December 31, 2020 and the separate financial statements at December 31, 2020, prepared in accordance with IFRS, in addition to the Directors' Report.

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Elica Group Operating Performance

Elica for 2020, due to the drop in sales volumes in March and in Q2 due to the COVID-19 emergency and the consequent lockdown, reports Consolidated revenue of Euro 452.6 million, -5.7% on the same period of 2019 (-4.4% at like-for-like exchange rates).

Market dynamics have progressively been impacted by the COVID-19 emergency. Global kitchen hood segment demand is estimated to contract 7.4%3 in 2020. This downturn impacted all markets. Asia saw a 9.3% decline amid divergent performances across the region. China for example in Q4 2020 saw growth ahead of expectations, closing 2020 with a partial recovery. Japan's recovery slowed following a fresh rise in infections. Finally, India demonstrated itself to be more resilient than expected and saw a small recovery in the final part of the year. The decrease in the EMEA region (-4.2%) in particular reflects the impact of the pandemic in Western Europe and in economies with a greater tourism focus - despite a strong second half of the year - while in Eastern Europe the significant recovery in the fourth quarter almost completely offset the decline in the initial part of the year. The American market was down 8.8%, although with the recovery in the second half of the year partially slowed - both in the US and in Brazil - by increases in infections at the end of 2020.

Own brand sales were down 2.1% on 2019, particularly as a result of the drop in April, while a quick recovery was already apparent by May 2020, with a further consolidation in Q3 and Q4 (+18.6% in Q4 2020 compared to the same period of 2019, +22.4% net of the currency effect). The NicolaTesla product accounted for 9% of total revenue in 2020. Own brand sales on the Cooking segment accounted for 55% in 2020.

OEM revenue was down 11.4% on the same period of the previous year (-10.2% at like-for-like exchange rates), particularly following the closure of the Mexican facility for nearly 2 months and partially offset by a recovery in Q2 2020 (+13.9% in Q4 2020 against Q4 2019, +17.1% at like-for-like exchange rates).

The Motors segment, representing 13.5% of total revenue, was impacted by slowing demand in March and Q2. This reduction was totally offset by the strong performance in the final quarter (+11.4% in Q4 2020 compared to the same period of 2019), resulting in an increase of 0.3% in 2020 compared to 2019.

Adjusted EBITDA of Euro 42.2 million was down 6.3% on the same period of 2019 (Euro 45.0 million), with a margin on revenues of 9.3% (9.4% in 2019). The revenue growth, together with operating efficiencies in

3 Source: Elica Group, internal estimates

terms of personnel expense, SG&A costs and Opex, supported an improved margin in Q4 2020 to 12.0% (+38.0%, +190 bps compared to the same period of 2019).

Adjusted EBIT of Euro 15.9 million in 2020 (Euro 19.6 million in 2019), with a significant recovery in Q4 (+55.1%, +160 bps in terms of EBIT margin compared to Q4 2019).

Net financial expense was Euro 4.0 million, reducing on Euro 5.1 million in 2019.

The Adjusted Net Profit was Euro 8.5 million, compared to Euro 9.3 million in 2019. The Adjusted Group Net Profit was Euro 2.6 million, compared to Euro 5.0 million in 2019. The Group's Tax Rate reflects from the low margin of the Italian Entity. The Minorities profit of Euro 5.9 million, improving on Euro 4.3 million in 2019, mainly reflects the flexibility of the Elica Group's business model in Japan and in India where, against revenue pressure, the margin did not suffer significant impacts.

The Group Net Result

In Euro thousands

Revenue

Adjusted EBITDA

EBITDA

Adjusted EBIT

EBIT

Net financial expenses

Income taxes

was a loss of Euro 1.8 million, compared to a profit of Euro 3.1 million in 2019.

2020	%	2019	%	20 Vs 19%
revenue	revenue
452,639	479,986	(5.7%)
42,204	9.3%	45,038	9.4%	(6.3%)
38,817	8.6%	42,467	8.8%	(8.6%)
15,864	3.5%	19,623	4.1%	(19.2%)
10,665	2.4%	17,052	3.6%	(37.5%)
(3,989)	(0.9%)	(5,119)	(1.1%)	22.1%
(2,531)	(0.6%)	(4,554)	(0.9%)	44.4%
Profit from continuing operations	4,145	0.9%	7,379	1.5%	(43.8%)
Adjusted profit for the year	8,531	1.9%	9,333	1.9%	(8.6%)
Profit for the year	4,145	0.9%	7,379	1.5%	(43.8%)
Adjusted profit/(loss) attributable to the owners of the
parent	2,584	0.6%	5,017	1.0%	(48.5%)
Profit/(loss) attributable to the owners of the Parent	(1,787)	(0.4%)	3,063	0.6%	(158.3%)
Basic earnings/(loss) per share on continuing operations and
discontinued operations (Euro/cents)
(2.82)	4.84	(158.3%)
Diluted earnings/(loss) per share on continuing operations and
discontinued operations (Euro/cents)
(2.82)	4.84	(158.3%)