Ariston N : FY 2022 ANALYST PRESENTATION

2022 FULL-YEAR

RESULTS

March 2nd, 2023

ANALYST PRESENTATION

OUR KEY INVESTMENT THESIS … AND HOW IT PLAYED OUT IN 2022

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CHAMPION OF

SUSTAINABLE

COMFORT ACROSS ALL

STAGES OF THE

ENERGY TRANSITION

• Acceleration of HHP and HPWH sales, on the back of the energy transition trend in Europe
• Demand for gas products sustained by renewal of installed base for higher efficiency, along with other energy transitions around the world

UNIQUELY BALANCED

COMMITMENT TO

BOTH HOT WATER

AND HEATING

• Increasing synergies and appeal for fully sustainable solutions
• Water-heatingtechnology diffusion facilitated by adoption of heating heat pumps in Europe
• Hot water: robust performance in high-potential markets, destocking-driven weakness in Americas in H2 and production disruption due to floods

GLOBAL FOOTPRINT OF

40+ MARKETS

SUPPORTED BY AN

INTEGRATED AND AGILE INDUSTRIAL BACK-END

• Distributed, centrally-managed procurement mitigated supply chain disruptions
• Geographic diversification reduced impact of China lockdowns & Russia-Ukraine war
• Ongoing recovery at two manufacturing plants after the floods in September - after several weeks of suspension

PROFITABLE GROWTH COMBINING STEADY

ORGANIC EXPANSION

WITH PROVEN M&A

TRACK RECORD

• Robust organic growth at +9% (ex-FX)
• Chromagen - deal closed in January 2022, integration progressed according to plan
• Centrotec Climate Systems - the largest M&A deal in company history announced in September 2022, closed on January 2nd 2023

SOLID FINANCIAL

PERFORMANCE AT TOP-

AND BOTTOM-LINE, LEAN BALANCE SHEET

• Total growth ca. +20%
• Solid Q4 performance drove FY EBIT Adjusted margin to 9.4%
• NWC decreased to 12% of sales, improved from September peak
• FY FCF lower than last year, significant generation in Q4

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2022 SAY/DO

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		Outlook given one year ago	Actual performance
		«Organic growth above mid-term guidance	9% organic + 3.9% FX + 6.8% Chromagen
		thanks to the tail of 2021 recovery, on top
		of ca. 5% added by Chromagen»
	«Perduring cost inflation and trade turbulences, especially in H1»	Situation started improving at the end of the year
	«Pricing actions expected to sustain margins despite minor dilution resulting	Pricing actions successfully implemented.
	from the Chromagen acquisition»
	EBIT Adjusted margin expectations trimmed from >10% to 9%-10% after the	FY EBIT Adjusted margin: 9.4%
	onset of war in Ukraine
	«Return towards normal seasonality: revenues, margins and cash flow»	Historic seasonality respected
			In Q4, double-digit AdjEBIT margin and >100% of yearly
			cash flow
	«Tax rate seen normalizing to ca. 23% (base case, subject to country mix)»	22%
	«Continued scouting and pursuit of M&A options in our space, in different	Announced acquisition of Centrotec Climate Systems
	sizes and geographies»	(closed on Jan 2 2023)
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NEW IN Q4 2022

RANGE EXTENSION OF NIMBUS HEAT PUMPS

• Built-In(pictured): all the hydraulic and system components inside a special cabinet that fits inside the external wall of a house, mainly addressing new buildings segment
• Split Hybrid: extension of hybrid technology from monobloc-only to split architecture, allows to bring the advantages of this

solution to all installation conditions

AXIOS ELECTRIC STORAGE WATER HEATERS

• New platform launched in South Africa
• Axios has been developed to satisfy new customer needs with improved easiness of installation and maintenance and highest energy efficiency, with 50L to 250L capacity
• The new Axios marks the debut of the global Ariston brand in the water-heating in South Africa

FOR PROFESSIONALS: NEW ARISTON NET PRO

• Worldwide release of a brand new ARISTON NET PRO tele-diagnosis platform featuring:

• 1. Renewed user experience, widened product coverage and enhanced functionalities o Active Care: predictive maintenance powered by AI algorithms
• Refresh of "extended warranty" service contracts - now named SMART+PROTECTION - including ARISTON NET PRO tele- diagnosis to improve technicians' operational efficiency together with quality and speed of service

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Q4 2022 & FY 2022 NET REVENUE BY DIVISION

€M	Q4 2022	Q4 2021	Change		o/w M&A
Thermal Comfort	600.3	521.8	+15.0%	35.4
Burners	28.1	26.6	+5.7%
Components	25.1	26.6	-5.8%
Total	653.5	575.0	+13.6%		35.4

€M	FY 2022	FY 2021	Change		o/w M&A
Thermal Comfort	2,187.4	1,807.0	+21.1%	135.4
Burners	95.9	94.6	+1.4%
Components	95.5	85.8	+11.3%
Total	2,378.8	1,987.3	+19.7%		135.4

K E Y C O M M E N T S

• Thermal comfort: energy transition-related acceleration of sales of heating systems in Europe
• Growth generally driven by price and mix, with Water Heating YoY volume decrease in H2 against very strong comparables. Significant miss in sales due to flooded plants in Italy
• Burners: benefit from favourable mix change with surge in dual-fuel prevailing on decrease in oil
• Components: growth still driven by pricing and favourable mix despite Q4 decrease, due to different monthly distribution of sales (Q3 was +30%)
• Chromagen's integration progressing according to plan - sales above expectations with a low-single-digit margin

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