De'longhi S.p.a. · MIL:DLG
De'longhi — Investor Day (May 2024)
135 slides from De'longhi's investor day presentation, May 28, 2024
Slide 1: May 28th, 2024
May 28th, 2024
Slide 2: Setting the scene
SETTING THE SCENE 2) HOME COFFEE NUTRITION COFFEE BREAK PROFESSIONAL COFFEE SUSTAINABILITY BY DE’ LONGHI GROUP & 6 OUR MEDIUM TERM GOALS Q&A DéLonghi Group
Slide 3: 50 years of evolution
Slide 4: The first product
The first product created by De’ Longhi is an oil-filled radiator The beginning DéLonghi Group Product diversification: the range expands, from radiators through electric fan heaters to catalytic stoves
Slide 5: The global launch
The De’ Longhi brand is |aunched globally through major sponsorships The global launch DéLonghi Group EI The Group launches Pinguino, the iconic product supported by a TV campaign
Slide 6: Key steps to set up a global firm
Key steps to set up a global firm Public listing on Milan's stock exchange Kenwood and Ariete acquisition Historic partnership with Nespresso DéLonghi Group
Slide 7: Braun joins the Group
Braun joins the Group, specifically its First step in the professional business, thanks to the acquisition De’ Longhi establishes itself as the
Slide 8: From product to consumer's experience
From product to consumer’s experience VA0 In the US, De’ Longhi acquires nutribullet, global leader in the personal blenders segment Business combination between La Marzocco and Eversys Full acquisition of Eversys, completed in 2021 DéLonghi Group
Slide 9: Group key figures
Above Above Above • €3,3bln €500M €300M • Approx. Approx. Approx. € *based on pro forma FY23
Slide 10: More than 10,500 employees
More than 10.500 Europe more employees North Americas 7000 more 300 Asia MEIA Pacific more 50 more 2900 based on pro forma FY23
Slide 11: Our Leadership Team
Our Leadership Team OOBVIGG Giuseppe de' Longhi Fabio de’ Longhi Silvia de’ Longhi Nicola Serafin Stefano Biella Paul Accornero Guido Bernardinelli Chairman and Vice-Chairman & CEO Chief Corporate Group's General Chief Financial Chief Commercial La Marzocco’s CEO Executive Director Service Officer M
Slide 12: Investment in products and innovation
In the last 5 years, the Group invested* more than €300 M€ to improve its products and innovation processes Total Group ca. 2,4% on sales based on pro forma FY23
Slide 13: Manufacturing Excellence
Manufacturing Excellence 100% of Professional Coffee machines produced internally HANDCRAFTED APPROACH [sa a 4 Over 80% of Household Coffee products psaubss] ; wile produced internally (100% Fully-Auto and Pump machines) SUPERIOR KNOW HOW, IN THE INDUSTRY Over 40% of the Others categories produced i
Slide 14: Revenue and EBITDA history
4.000 3.000 2.000 1.000 - 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023* 600 400 200 - Eur M 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023* Reported figures *based on pro forma FY23
Slide 15: ROCE consistently around 30%
ROCE consistently around 30% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2023* *based on pro forma FY23
Slide 16: Key factors for the achievements
© __ From Comfort & Traditional Kitchen to Coffee & Nutrition O Expanding geographical coverage O | Establishing as a global market leader Key factors for the De’ Longhi's O Fostering sustainable choices achievements O © Global communication campaign O From Appliances to Consumer experiences O Strat
Slide 17: Revenues by category
Coffee Nutrition & FoodPreparation Confort & Home Care & Others Core business based on pro forma FY23
Slide 18: Revenues by geography
Rest of the World Asia Pacific 17% 16% Meia 5% North America 9% Italy 28% Americas 19% Europe 60% Europe 75% based on pro forma FY23
Slide 19: Establishing as a global market leader
Establishing as a global market leader Confort & Home Care & Others = Nutrition & FoodPreparation 3,3 BLN € = Coffee 70% of revenues in #top1 leadership position* FY23 *based on market coverage (pro forma FY23) DéLonghi Group De' Longhi's primary focus is to establish its products as premium and mar
Slide 20: Establishing as a global market leader
Establishing as a global market leader De’ Longhi KENWOOD Braun nutribullet LA MARZOCCO: Epresso coffe Kitchen machines* Hand blenders* Personal blenders* Semi automatic machines* & food-preparation professional coffee makers* DéLonghi Group *based on market coverage (pro forma FY23)
Slide 21: Sustainable products and behaviour
First espresso coffee machine Our machines focus on coffee Our appliances allow customers to «carbon neutral» valorisation by enabling reduce food waste and encourage sustainable behaviour the use of fresh products
Slide 22: Next De' Longhi Group's priorities
Next De’ Longhi Group’s priorities Expanding Coffee at home Riding Nutrition wave Capitalising on brands awareness and products innovation Surfing professional coffee premiutization DeLonghiGroup Effective cost optimization M&A accretive acquisitions
Slide 23: Home Coffee
Home Coffee Coffee market growth drivers How De’ Longhi has been leading the pack Taking it to the next level DéLonghi Group
Slide 24: Billions of kg of coffee
10.8 Billions of KG coffee 5.4 1990 2000 2010 2020
Slide 25: Waves of coffee
2nd Wave 4th Wave A shift from commodity to The expansion from coffee branded chains to coffee beverages Coffee becomes a lifestyle Technology is used to take product, with social coffee experiences to the aspects next level, variety of coffee and beyond (such as cold Period: mid to end brew, myxolo
Slide 26: Coffee has become part of our daily routine
Coffee has become part of our daily routine Coffee has changed its role — it is no more a commodity — it's an experience both in and out of home! Frequency of drinking coffee more than 4 3-4 cups a week cups per day 1 cup per day 2-4 cups per day AROMA and IN-CUP results are the core essence and spi
Slide 27: Espresso makers market growth
The market for espresso makers has grown, as consumers have became more sophisticated and Espresso coffee expansion is outpacing total market growth 60M pieces Filter Espresso 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 28: The Fully-Auto
The Fully-Auto is , recognized as the “ most versatile product that is adaptive to the fourth wave of coffee al DéLonghi Group
Slide 29: Brand equity research
Source: internal analysis World Brand Equity Research, 2022
Slide 30: Coffee consumer tendencies have changed
Coffee consumer tendencies have changed over time, generations and culture. Coffee Multi Personalized Beans Beverage Approach Coffee Variety Cold coffee Non-Dairy Beverages Different Beans and Espresso Cocktails Other personalization Roasts and Mocktails
Slide 31: Home Coffee
Home Coffee Coffee market growth drivers How De’ Longhi has been leading the pack Taking it to the next level DéLonghi Group
Slide 32: De' Longhi covers all consumer needs and coffee segments
De’ Longhi is the only brand that covers all consumer needs and coffee segments Moka Full Auto Drip Pump with Drip with Single grinder grinder Serve Pump
Slide 33: —_—,
—_—,
Slide 34: La Specialista Maestro
¢ La Specialista MAESTRO
Slide 35: Coffee consumer tendencies have changed
Coffee Multi Personalized Beans Beverage Approach Younger and Wider Multiple Moments Additional reason-why Target Audience of use for purchase or trade up Coffee consumer tendencies have changed over time, generations and culture
Slide 36: Coffee Beans
Coffee Multi Personalized Beans Beverage Approach
Slide 37: Multi Beverage
Coffee Multi Personalized Beans Beverage Approach
Slide 38: Innovation through the years
Innovation through the years
Slide 39: We're not simply launching
We're not simply launching DeLonghi Group
Slide 40: ...we are unlocking
...we are unlocking DéLonghi Group
Slide 41: Category
Category: Category: Category:
Slide 42: Design & Quality & Technology
Design & Quality & Technology Stiftung Warentest isa German consumer organisation and foundation involved in investigating and comparing goods and services in an unbiased way LUxus-MoDELL
Slide 43: Building the coffee experience at home
Building the coffee experience at home Key consumer category drivers: Key consumer drivers for selecting a Fully-Auto* De’ Longhi's Fully-Auto* #1 To get a better coffee at home #1 De’ Longhi guarantees a good quality #2. To have a variety of drinks #2 De’ Longhi has a good reputation #3 To personal
Slide 44: From espresso to coffee experience
presso to coffee experience Cs * & Cappuccino aa bad Grinding coffee S = on be e* . Plenty of customisation choices and receipts to elevate the consumer service level DéLonghi Group
Slide 45: Ambassador Campaign renewed
Ambassador Campaign renewed Growing Brand Awareness and Mental Availability Building Emotional Connection Amplifying Premiumness and Brand Value Perception DéLonghi Group A > 7) ¥ J 4" e 9 ®
Slide 46: Home Coffee
Home Coffee Coffee market growth drivers How De’ Longhi has been leading the pack Taking it to the next level DéLonghi Group
Slide 47: Home coffee strategic priorities
Address emerging trends beyond the espresso category, introducing new technologies and solutions Strengthen mid-to-high end leadership and increase premiuness position in the Fully-auto category Leverage the Nespresso partnership, which is still driving espresso at home expansion Strengthen our posi
Slide 48: Expand penetration across all coffee segments
EXPAND PENETRATION ACROSS ALL COFFEE SEGMENTS FOCUS ON INNOVATION, CONSUMER EXPERIENCE AND EMERGING COFFEE CONSUMPTION TRENDS
Slide 49: Nutrition
Nutrition Consumer preferences are fast evolving The Group is reframing growth strategy Future-fit value creation plan DéLonghi Group
Slide 50: Consumer approach to nutrition is evolving
Consumer approach to nutrition is evolving
Slide 51: Health is the #1 reason to cook at home
Health is the #1 reason to cook at home 73% 82% 69% 77% 81% 58% 55% Health trigger even of all recipes social Linked to wellness stronger for younger conversations were goals, diets and consumers focussed on health weight loss programs Source: survey greater than 5k respondents FRA, DE, IT, AU, UK,
Slide 52: Control over quality and freshness
Becoming more important Control over quality & freshness is the second biggest reason to cook at home Top 3 concerns: Hyper processed Added sugars Saturated fat Sustainability Biggest link to quality 66% Kind to planet 64% Freshness 50%
Slide 53: Food is becoming multicultural and glo-cal
Food is becoming Average number of Easy to manage preferences with multicultural and ‘glo-cal’ cusiines cooked at home cooking at home vs other options Cooked at home 86% # of cuisines cooked at Eat outside 36% home: 5.8 4.9 Delivery 21% More than 4 cuisines 56% Ready to eat. 17% Younger consumers 7
Slide 54: Consumer survey
Source: survey greater than 5k respondents FRA, DE, IT, AU, UK, US. Social listening
Slide 55: Two thirds think space is too little
2\3 people think space is too less or would like more space 36% 35% 34% 33% 33% 31% 23% 24% 24% Drawer Space Cabinet Space Counter Space More than big enough/big enough Fits my current needs but would like more A bit too small/far too small Source: Q vey: Q3. How would you de: TOTAL POP 81% GenZ 65%
Slide 56: Nutrition
Nutrition Consumer preferences are fast evolving The Group is reframing growth strategy Future-fit value creation plan DéLonghi Group
Slide 57: nutribullet fits wonderfully with this phenomenon
Slide 58: nutribullet category captain
Category captain N #1 Global Personal Blender Brand in the World Over 100 M units sold worldwide nutribullet: it’s that simple nutribullet. “Go To” Brands for Adjacent Categories Opportunities to Win in adjacent category Expand consumer insights Win in Full Size and Portable blending DéLonghi Group
Slide 59: Expanding across categories
Expanding. across categories Personal Full size Blenders Blenders Juicers DéLonghi Group nutribullet. Air Fryers
Slide 60: Expanding across geographies
of ——EE \ . \ nutribullet. Expanding across geographies . source: inteMmalanalysis on global market coverage
Slide 61: Expanding across geographies: early signs of success
ee nutribullet. Expanding across geographies: early signs of success BENELUX Successful nutribullet® nutribullet® & magic Consumer Love Portable launch, bullet® awarded Best demonstrated by exceeding forecast and Buys by Benelux TRUSTPILOT beating competitors Consumer Association 5 stars DéLonghi Gr
Slide 62: Braun #1 hand blender globally
BRAUN #1 Hand Blender Globally Whieh are the barriers to Blender ownership? DéLonghi Group
Slide 63: Unlimited versatility
UNLIMITED VERSATILITY Attract new consumers Expand current consumers world’s largest attachment system*, Lead and grow for unlimited versatility the Category MORE than a hand blender
Slide 64: Kenwood
KENWOOD .
Slide 65: Compact and light weight
Compact & Wonderful gift Light weight Easily stored Simple controls Designed Calming & 360॰ to be moved modern design express serve Unlimited capacity
Slide 66: Kenwood food processors
KENWOOD Food Process ; Globally #6 to #3 Food Processor 2023 and to #2 in Europe in just one year FASTEST growing brand in 2024 Multipro GO +4pp Mkt share on total food processors @ Viral TitkTok video campaign with influencers 20M views and 34M on instagram @ |TFRDEUK DéLonghi Group
Slide 67: Nutrition
Nutrition Consumer preferences are fast evolving The Group is reframing growth strategy Future-fit value creation plan DéLonghi Group
Slide 68: Nutrition strategic priorities
Optimise portfolio in line with consumer preferences Drive innovation to resolve consumer pain points and evolve category boundaries Social by Design: Scale up influencer and affiliate marketing Leverage CRM and connected machines to cross-sell and drive expandability Scale up e-commerce, reviews pr
Slide 69: Play our brand portfolio with sharp category focus
PLAY OUR BRAND PORTFOLIO WITH SHARP CATEGORY FOCUS FOCUS ON INNOVATION, MARKETING DATA DRIVEN AND NEW APPROACH TO THE CONSUMER EXPECTATIONS
Slide 70: Coffee Break
ig CP COFFEE BREAK DéLonghi Group
Slide 71: Professional Coffee
Professional Coffee The market's growth and consistent enhancement in coffee quality La Marzocco and Eversys’‘s role in leading the market Combining capabilities for leveraging opportunities
Slide 72: Billions of kg of coffee
10.8 Billions of KG coffee 5.4 1990 2000 2010 2020
Slide 73: Yearly coffee consumption per capita
Yearly coffee Consumption per Capita (KG) Africa Asia Europe North Oceania South America America Consumption (tons)
Slide 74: Coffee shops per million population
USA Europe East Asia China (ex China) around 50 around around 35 120 below 80 Total Coffee shops per M population
Slide 75: Professional coffee market expected to expand
The professional coffee market is expected to steadily expand Expected High single Filter coffee is still the Consumers Above 60% of digit expansion of most popular in the US, demanding higher industry leaders think number of coffee but younger customers quality and improved there is plenty of shops
Slide 76: Types of coffee machines
Semi-automatic coffee Vending machines machines separate make coffee from bean grinding, espresso beans, liquid, or brewing and milk powder, but they use heating processes and milk powder and are thus need to be less sophisticated operated by a barista Automatic coffee Machines use Filter coffee mac
Slide 77: Professional full-auto market opportunity
Daily capacity High (> 200 cups/day) Medium (30-200 cups/day) Low (<30 cups/day) A Liquid & frozen vending machines Group's Market opportunity Professional FULL-Auto Market size ca. 1.8-2.2 BLN € Low Medium High Perceived quality DéLonghi Group Full-Auto and Semi- Auto professional coffee makers hav
Slide 78: Professional Coffee
Professional Coffee The market's growth and consistent enhancement in coffee quality La Marzocco and Eversys’s role in leading the market Combining capabilities for leveraging opportunities
Slide 79: Operational footprint
Offices and Branded Resellers Distributors Operational Footrpint People % Spare parts & Service
Slide 80: DéLonghi Group
DéLonghi Group
Slide 81: Eversys and La Marzocco strengths
aN (versys SUPERIOR IN-CUP QUALITY ICONIC DESIGN LOVED BRAND ADVANCE CORE TECHNOLOGY INNOVATION IS IN LMZ’S DNA DESIGN TO SIMPLIFY MAINTENANCE ADJACENT CATEGORIES INNOVATIVE SOLUTIONS THE HOME OPPORTUNITY > DéLonghi Group
Slide 82: Eversys
DéLonghi Group
Slide 83: Eversys
DéLonghi Group
Slide 84: Automated calibration and telemetry
Automated calibration and telemetry ensure precise, high-quality beverages even during peak hours, minimizing errors and waste.
Slide 85: Superior in-cup quality
Q@versys Superior In-Cup quality | Working with Eversys is like having a silent expert by your side, ensuring every cup reflects our passion and dedication to coffee. Chris Loukakis (World Latte Art Champion 2011) fl Eversys machines bring a new level of precision to our craft. They're not just mach
Slide 86: Advanced core technology
Advance one technology for many customers, enabling remote software integration that allows for unparalleled control over coffee profiling, milk monitoring, and water management Cup Quality i .. (Differentiation) 00 penwmn Asset Efficiency (Total Cost of Ownership)
Slide 87: Design to simplify maintenance
(@versys Design to simplify maintenence Each Eversys with a technician’s mind set, ensuring with minimal downtime, quick replacement and reduced maintenance costs. DéLonghi Group O]
Slide 88: Innovative solutions
(Versys Innovative solutions NEW TECHNOLOGIES R&D leads the pack in professional espresso technology on: * Cold brew Milk system Brewing Cleaning j loT Developed ecosystem of loT partners covering payments, under-counter solutions, self-service coffee, etc. TELEMETRY Industry Leadership, tracking mo
Slide 89: La Marzocco
DéLonghi Group
Slide 90: Iconic design
Iconic design VG \ ; = collaboration between brands and artisans to create \ the ultimate handcrafted espresso machine
Slide 91: Brand collaborations
Leva at Deutsches Museum Le Café Lacoste at KaDeWe Porsche Carrera Cup Limited-edition RIMOWA
Slide 92: Loved brand
Loved brand “= a ‘quite temperamental, 3 vx | this, but Hove it. Source: reddit Triathlon legend Jan Frodeno “It’s quite temperamental, this, but | love it... It’s the best,” Beckham tells Beckham docuseries, as he ushers him into his kitchen at the beginning of episode two. DéLonghi Group
Slide 93: La Marzocco
La Marzocco Jimmy Butler NBA basketball player
Slide 94: Innovation is in La Marzocco's DNA
Innovation is in La Marzocco’s DNA Strada X automatically saturates the espresso puck at a low pressure set by a pump that feeds consistent pressure into the machine. It uses data from internal flow meters to sense the exact moment it should increase the pressure. Straight-in portafilters speed extr
Slide 95: Adjacent areas: grinders
are among the factors that enable La Marzocco to move into adjacent areas. Just the addressable grinder market is around
Slide 96: The home opportunity in luxury
A significant opportunity in a developing area, leveraging brand knowledge and know-how to serve the luxury home market a A PORTFOLIO OF COMPLEMENTARY BRANDS | & = high Profe: Sb 200c0) SemiA age medium (60200 enpsiy) I mo LUXUTY I Household CM. Mo et oe to oll low, (ovata) >300€ >2.500€ >10.000€ >3
Slide 97: Professional Coffee
Professional Coffee The market's growth and consistent enhancement in coffee quality La Marzocco and Eversys’‘s role in leading the market Combining capabilities for leveraging opportunities
Slide 98: Combined business opportunities
Exploit combined business opportunities, collaborating on partnerships and commercial propositions Take advantage of the Group's size for achieving economies of scale in sourcing and supply chain Joint technological know how for developing new innovative solutions, as the cold coffee trend Riding th
Slide 99: Coffee shop growth and equipment improvement
COFFEE SHOP GROWTH AND EQUIPMENT IMPROVEMENT SUPERIOR IN-CUP QUALITY, TECHNOLOGICAL EXPERTISE, ICONIC DESIGN
Slide 100: Our medium term goals
Slide 101: Strategic enablers and workstreams
6 STRATEGIC ENABLERS Beyond 3 years up to 5 years Ensure long term vision and development strategy 3 SPECIFIC WORKSTREAMS Across 3 years Focus and investments on dedicated workstreams YEARLY PLAN By year Plan developed by regions, brands and products categories
Slide 102: Strategic enablers and workstreams
6 STRATEGIC ENABLERS Beyond 3 years up to 5 years Ensure long term vision and development strategy 3 SPECIFIC WORKSTREAMS Across 3 years Focus and investments on dedicated workstreams YEARLY PLAN By year Plan developed by regions, brands and products categories
Slide 103: Revenue growth and targets
€ • • 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 18,0% 700 16,0% 600 14,0% 500 12,0% 10,0% 400 • 8,0% 300 6,0% 200 • 4,0% 2,0% 100 0,0% - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 € • • 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 104: Revenues by category
Others Nutrition Profess. Coffee Home Coffee €2,078M €2,101M €1,973M €1,845M 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 105: Revenues by category
Others Nutrition Profess. Coffee Home Coffee €3,222M €3,158M €3,076M €2,351M €2,078M €2,101M €1,973M €1,845M 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 • • •
Slide 106: Revenues by category
Others Nutrition Profess. Coffee Home Coffee €3,222M €3,158M €3,076M €2,351M €2,078M €2,101M €1,973M €1,845M 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 • •
Slide 107: Home Coffee, Nutrition, Others, Professional Coffee
Home Coffee Nutrition Others Professional Coffee
Slide 108: EBITDA targets
700 19,0% 600 17,0% 16,0% 16,0% 15,7% 15,6% 15,1% 500 15,0% 14,4% 14,1% 400 13,0% 11,5% 300 11,0% 515 444 200 9,0% 366 362 295 310 313 295 7,0% 100 5,0% - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 109: 3Y Group's Adj EBITDA margin blocks
3Y Group’s Adj Ebitda margin blocks efficiencies driven by volumes PRICE MIX Improve the product mix through the premiumization on core categories &63 CHANGE PERIMETER SONS Consolidation of La Marzocco, with accretive Ebitda margin t VOLUME PRODUCTION COSTS S @ Volume growth led by coffee (both home
Slide 110: Net income and margin
€426M €406M €394M 8,9% 8,4% 8,6% 8,2% 8,2% 8,3% 8,2% 7,8% €293M €245M €221M €227M €198M 5,2% 4,8% 4,6% 3,6% 3,0% 3,1% 2,6% 2,5% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 111: Excerpt from Investor Day 2021
Excerpt from Investor Day 2021
Slide 112: Net financial position
76 87 27 45 31 19 12 13 17 18 2 7 -8 -25 -36 -53 2016 2017 2018 2019 2020 2021 2022 2023
Slide 113: Capital Allocation's key factors
Capital Allocation’s key factors S 29) 2 CAPEX Investing in product categories and ranges, digitalization, production capacity and automation Cr DIVIDENDS Cash distribution for shareholders’ return DéLonghi Group M&A MBA as a consistent strategy for backing organic growth
Slide 114: Free cash flow expectations
Average (before DVD and M&A) expected to be in a range of per year 436 407 364 193 183 127 54 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Slide 115: Capex per year
€ € 150 M per year € 156 132 132 124 90 60 60 62 2016 2017 2018 2019 2020 2021 2022 2023
Slide 116: Dividends
150 120 125 81 81 72 66 55 2016 2017 2018 2019 2020 2021 2022 2023 € 2016 2017 2018 2019 2020 2021 2022 2023
Slide 117: Pro forma level
663 Pro froma 425 level 307 278 299 251 228 232 2016 2017 2018 2019 2020 2021 2022 2023 2023*
Slide 118: Key criteria about M&A
Key criteria about M&A Adjacent to Group’s know how and management continuity Leadership position Strategic fit: (Brand, Technology, category and Market) geo complementarity ROCE and FCF conversion of the Expected Revenues target above Group's growth above performance Group's trend - ow Ebitda accre
Slide 119: Group's last deals
Group’s last deals (Brand, Technology, Market) Strategic fit (category — geo) Adjacent know how and management continuity Ebitda accretive Leadership position S S S AS ROCE and FCF conversion performance C0666 Bp Expected Revenues growth S/S above Group's trend DéLonghi Group
Slide 120: Strategic enablers and workstreams
6 STRATEGIC ENABLERS Beyond 3 years up to 5 years Ensure long term vision and development strategy 3 SPECIFIC WORKSTREAMS Across 3 years Focus and investments on dedicated workstreams YEARLY PLAN By year Plan developed by regions, brands and products categories
Slide 121: Strategic enablers
Operational Excellence & Sone Focus on operational excellence, logistic simplification, procurement optimization and process automation Talent Development B22 Empower people's development and growth by valuing each individual talent, addressing employees' ambitions and expectations Strategic Enabler
Slide 122: Sustainability by De' Longhi Group
DéLonghi Group
Slide 123: Over the years, we have increasingly adopted sustainable behaviors
° Over the years, we have increasingly adopted sustainable behaviors °
Slide 124: Our Sustainability Commitments
Our Sustainability Commitments switch On a responsible day Decarbonizing our Sustainable products Fostering awareness, operations and value through conscious choices & chain responsible behaviours (Science-Based Target) (Eco-design guidelines) DéLonghi Group
Slide 125: Sustainability commitments and targets
Processes Minimization of waste sent to landfill Processes Partners Products Processes Partners Products Partners Reduction of products' environmental impact Products Partners Submission of SBTi Targets and definition of a carbon reduction plan Products People Processes Partners Products Processes I
Slide 126: Working on a Sustainability Culture
Working on a Sustainability Culture Our People Diversity, competences, talent development among the key ingredients of people development The optimisation we execute Improve operational efficiency by optimizing resource utilization, minimizing waste and digitalizing operations The energy we use Cons
Slide 127: Talent development, competences, DE&I
• • • • Talent development Competences DE&I
Slide 128: Inspiring upskilling
INSPIRING UPSKILLING Inspirational meeting with Group’s platform is designed prof. Joseph Stiglitz to foster sustainability education
Slide 129: The energy we use
The energy we use a responsible day In 2023, total emissions market based decreased by 55% compared with 2022, due to 100% grid-sourced electricity covered by Guarantees of Origin (GO) In 2023, the energy intensity (energy consumed kwh/pieces produced) decreased from 6.7 to 5.8 DéLonghi Group
Slide 130: Collaboration on eco-design
Collaboration DéLonghi Group + =>) POLITECNICO J) MILANO 1863 DIPARTIMENTO D1 DESIGN @PO@ |28 | eiicar Handbook of Guidelines to Design Low Environmental Impact Eco-Design Guidelines DéLonghi Group switch On a responsible day Implementation of Eco-Design approach By implementing this approach, we le
Slide 131: Rivelia: the first carbon neutral domestic coffee machine
RIVELIA: the 1s%*CARBON NEUTRAL domestic coffee-machine
Slide 132: Thank you!
Slide 133: Q&A
Q&A DéLonghi Group
Slide 134: Forward-looking statements
This presentation might contain certain forward-looking statements that reflect the company’s current views with respect to future events and financial and operational performance of the company and its subsidiaries. Forward looking statements are based on De' Longhi’s current expectations and proje
Slide 135: For additional information please visit our website or contact us
For additional information please visit our website or contact us