Interpump S p A : IP - 2Q-1H2022 Financial Results

INTERPUMP APPROVES CONSOLIDATED RESULTS

FOR THE FIRST HALF OF 2022

Chairman Fulvio Montipò:

"Interpump net sales exceeded one billion in the 1Half, and we expect to breach the two billion

threshold by year end. Given that 2Q2021 was the height of excellence and that the macro difficulties currently faced are generally more challenging, these results confirm the stability, resilience and indeed flexibility of the Group. The best evidence for this is found in our double- digit organic growth and in our ability to deal effectively with contingent tensions.

Despite these operating conditions, Interpump is confident that the full year results for 2022 will

confirm our usual levels of excellence"

DATA FOR 2Q2022:

Net sales: € 537.6 million, +32.6% compared with 2Q2021

(+17.3% at constant perimeter)

EBITDA: € 127.5 million, +25.2% compared with 2Q2021

(+15.4% at constant perimeter and net of non-recurring costs for the quarter1)

and with an EBITDA margin of 23.7% compared with 25.1% in the same period of 2021

(24.7% at constant perimeter and net of non-recurring costs for the quarter1)

Consolidated net profit: € 73.4 million, -1.5%compared with 2Q2021

(+29.7% net of tax benefits recognized in the comparative period and non-recurring costs for the quarter1)

DATA FOR 1H2022:

Net sales: € 1,026.3 million, +31.4% compared with 1H2021

(+16.5% at constant perimeter)

EBITDA: € 241.7 million, +25.0% compared with 1H2021

(+14.4% at constant perimeter and net of non-recurring costs incurred in 2Q1)

and with an EBITDA margin of 23.6% compared with 24.7% in the same period of 2021

(24.3% at constant perimeter and net of non-recurring costs incurred in 2Q1)

1 A fire in May seriously damaged one of the Romanian plants of I.M.M., a subsidiary that contributed just under 1% of the Group's net sales in 2021. This event generated non-recurring costs of 6.3 million euro: 1.6 million euro to write down inventories and 4.7 million euro to write down fixed assets.

INTERPUMP GROUP S.p. A. - Via E. FERMI, 25 - 42049 S. ILARIO - REGGIO EMILIA (ITALY) - TEL.[phone] FAX. [phone] - E- mail [e-mail]

SHARE CAPITAL € 56,617,232.88 fully paid -up. - R.E. BUSINESS REGISTER - TAX CODE 11666900151 - CHAMBER OF COMMERC E

ADMINISTRATIVE AND ECONOMIC INDEX (R. E. A.) No. 204185

Consolidated net profit: € 139.5 million, +8.7% compared with 1H2021

(+35.6% net of tax benefits recognized in the comparative period and non-recurring costs

incurred in 2Q)

Net financial position: € 628.8 million compared with € 494.9 million at 31 December 2021 (in the period: investment, € 51.0 million; purchases of treasury shares, € 86.8 million; dividends, € 29.8 million; acquisitions, € 31.9 million)

Sant'Ilario d'Enza (RE), 2 August 2022 - The Board of Directors of Interpump Group S.p.A., meeting today under the chairmanship of Fulvio Montipò, approved the Half-Yearly Financial Report at 30 June 2022 on the consolidated results of the Group.

CONSOLIDATED RESULTS FOR 2Q2022

Net sales

Net sales totaled 537.6 million euro in 2Q2022, an increase of 32.6% from 405.5 million euro in the corresponding period of 2021 (+17.3% growth at constant perimeter2). At operating division level within the Group, Hydraulics grew by 41.8% (+20.0% at constant perimeter) while Water- Jetting grew by 10.9%.

Sales by business sector and geographical area were as follows:

		Rest of	North	Pacific	Rest of the
(€/000)	Italy	Europe	America	Area	World	Total
2Q2022
Hydraulics	75,077	144,959	106,062	41,583	33,592	401,273
Water-Jetting	14,440	44,658	53,520	13,912	9,809	136,339
Total	89,517	189,617	159,582	55,495	43,401	537,612
2Q2021
Hydraulics	59,972	103,754	60,919	34,702	23,774	283,121
Water-Jetting	11,583	46,350	40,969	14,019	9,443	122,364
Total	71,555	150,104	101,888	48,721	33,217	405,485

2 With respect to the results for the corresponding period in 2021, the change in perimeter relates to White Drive Products and its subsidiaries (acquired on 1 October 2021) and Draintech, which joined the Group on 27 May and has been consolidated from June. Berma (acquired on 11 November 2021) was absorbed by Reggiana Riduttori on 28 February 2022 and, accordingly, the perimeter is unchanged in this regard. All the above companies are consolidated by the Hydraulics division of the Group.

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2022/2021 percentage changes
Hydraulics	+25.2%	+39.7%	+74.1%	+19.8%	+41.3%	+41.7%
Water-Jetting	+24.7%	-3.7%	+30.6%	-0.8%	+3.9%	+11.4%
Total	+25.1%	+26.3%	+56.6%	+13.9%	+30.7%	+32.6%

The Group achieved organic growth3 of 12.5%, with Hydraulics and Water-Jetting up by 15.6% and 5.5% respectively.

Profitability

EBITDA totaled 127.5 million euro in 2Q2022, up by 25.2% compared with 101.8 million euro in the corresponding period of 2021 (+13.8% at constant perimeter) and representing 23.7% of sales (24.4% at constant perimeter), compared with 25.1% in 2Q of the prior year.

The following table sets out EBITDA by business sector:

	2Q2022	% on	2Q2021	% on
	€/000	total	€/000	total	Increase/
		sales 4		sales 4	Decrease
Hydraulics	88,114	21.9%	65,890	23.2%	+33.7%
Water-Jetting	39,377	28.7%	35,947	29.0%	+9.5%
Total	127,491	23.7%	101,837	25.1%	+25.2%

In order to provide a more complete understanding, it is necessary to mention that the costs of the Hydraulics division have been penalized by an inventory writedown of 1.6 million euro consequent to the fire in May that seriously damaged one of the I.M.M. plants in Romania5. Net of this effect, the profitability of the Group would have grown by 15.4% and the EBITDA margin would have been 24.0% (24.7% excluding the above costs and at constant perimeter). The real reduction in the profitability of the Group during the quarter was therefore very limited: from 25.1% to 24.7%. This highlights both the speed of implementation and, above all, the effectiveness of the countermeasures adopted to safeguard profitability, in a quarter marked by considerable inflationary pressures in absolute terms and with respect to the comparative period,

1. Same scope of consolidation and exchange rates.
2. Total sales include those to other Group companies in the other sector, while the sales analyzed previously were exclusively those external to the Group. Accordingly, for consistency, the percentage is calculated on total sales rather than on those reported previously
3. With regard to this event, it is notable that action was taken immediately to compensate for the decline in production by increasing the output of other Group plants, while the insurance policies arranged by the Group cover the related direct and indirect losses, which are currently being quantified.

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which was practically unaffected by such phenomena and remains an historical peak of excellence for the Group.

EBIT totaled 99.0 million euro in 2Q2022, up by 20.0% from 82.5 million euro and representing 18.4% of sales, compared with 20.3% in the corresponding period in the prior year. The fire in Romania also resulted in the destruction of fixed assets with a carrying amount of 4.7 million euro: excluding all event-related costs - 6.3 million euro - EBIT would have risen by 27.6% and represented 19.6% of sales.

Consolidated net profit amounted to 73.4 million euro in 2Q, down by 1.5% from 74.5 million euro in the second quarter of 2021. Notably, a number of the Group's Italian subsidiaries benefited from the revaluation of certain trademarks in the comparative period, with the resulting recognition of tax benefits totaling 20.1 million euro. Excluding these one-off tax benefits and the costs of the fire in Romania, consolidated net profit would have been 29.7% higher.

CONSOLIDATED RESULTS FOR 1H2022

Net sales

Net sales totaled 1,026.3 million euro in 1H2022, up by 31.4% compared with 781.1 million euro in the corresponding period of the prior year (+16.5% growth at constant perimeter). At operating division level within the Group, Hydraulics grew by 39.5% (+18.1% at constant perimeter) while Water-Jetting grew by 12.6%.

Sales by business sector and geographical area were as follows:

		Rest of	North	Pacific	Rest of the
(€/000)	Italy	Europe	America	Area	World	Total
1H2022
Hydraulics	143,210	280,576	198,880	79,676	63,780	766,122
Water-Jetting	27,180	85,514	98,732	27,682	21,062	260,170
Total	170,390	366,090	297,612	107,358	84,842	1,026,292
1H2021
Hydraulics	113,825	197,006	119,604	67,815	51,756	550,006
Water-Jetting	21,978	85547	76915	29376	17232	231048
Total	135,803	282,553	196,519	97,191	68,988	781,054

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2022/2021 percentage changes
Hydraulics	+25.8%	+42.4%	+66.3%	+17.5%	+23.2%	+39.3%
Water-Jetting	+23.7%	-	+28.4%	-5.8%	+22.2%	+12.6%
Total	+25.5%	+29.6%	+51.4%	+10.5%	+23.0%	+31.4%

Organic growth at Group level was 12.6%, comprising 14.5% by the Hydraulics division and 7.9% by the Water-Jetting division.

Profitability

EBITDA totaled 241.7 million euro in H1 2022, up by 25.0% compared with 193.3 million euro in the corresponding period of 2021 (+13.6% growth at constant perimeter). As a percentage of sales, EBITDA was 23.6% (24.1% at constant perimeter) compared with 24.7% in the comparative period of the prior year.

The following table sets out EBITDA by business sector:

		% on		% on
	1H2022	total	1H2021	total	Increase/
	€/000	sales4	€/000	sales4	Decrease
Hydraulics	167,305	21.8%	126,377	23.0%	+32.4%
Water-Jetting	74,395	28.4%	66,931	28.6%	+11.2%
Total	241,700	23.6%	193,308	24.7%	+25.0%

Excluding the impact of the fire in Romania, the EBITDA of the Group would have risen by 14.4% with profitability of 23.7% (24.3% excluding the above costs and at unchanged perimeter). This first semester represents an appropriate time horizon for evaluating the integration of White Drive, which is proceeding in accordance with the plan prepared at the time of acquisition. This is confirmed by the resulting limited dilution of Group profitability.

EBIT totaled 191.6 million euro in 1H2022, up by 24.3% compared with 154.2 million euro in H1 2021 and representing 18.7% of sales. Excluding the non-recurring Romanian costs, EBIT would have risen by 28.4% and represented 19.3% of sales (19.7% in the corresponding period of the prior year).

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