Ariston Holding Nv · MIL:ARIS
Ariston Holding Nv — Q2 2025 Earnings Presentation
39 slides from Ariston Holding Nv's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter and First Half 2025 Results
SECOND QUARTER AND FIRST HALF 2025 RESULTS 31ST JULY 2025
Slide 2: Agenda
AGENDA Highlights Financials Outlook Appendix 2
Slide 3: Solid Q2 Organic Growth, Margin Improving YoY
SOLID Q2 ORGANIC GROWTH, MARGIN IMPROVING YOY Net 644 €M Heating improving, led by heat pump revenues +3.6% YoY organic1 Water heating stable Adj. 31 €M Improved YoY margin, thanks to efficiencies and operating leverage, partly EBIT 4.8% margin offset by go-to-market, digital, and R&D investments Fr
Slide 4: Ariston-Lennox JV to Accelerate in USA & Canada Water Heating Market
ARISTON-LENNOX JV TO ACCELERATE IN USA & CANADA WATER HEATING MARKET Leading NAM HVAC OEM with reputation for Active globally in sustainable climate and innovation, quality, and reliability water comfort solutions Top 3 HVACR distributor with over 300 Tank-type water heater leader, top 3 in location
Slide 5: Bolt-on Acquisitions to Accelerate Components Division Growth
BOLT-ON ACQUISITIONS TO ACCELERATE COMPONENTS DIVISION GROWTH Q1 2025 DDR HEATING: FIRST STEP IN THE US COMPONENTS MARKET • Rationale: entry point into the North America components market USA Components • Business: US-based player specializing in tubular electric heaters for professional and industr
Slide 6: Balanced Exposure to Both Climate Comfort and Water Heating Markets
BALANCED EXPOSURE TO BOTH CLIMATE COMFORT AND WATER HEATING MARKETS FY 2024 THERMAL COMFORT DIVISION Climate comfo rt Water Heating 94% Heating Boilers Heating Hybrid systems Heating Heat Pumps Air Conditioning ~2.6€BN REVENUES FY 2024 Electric Heat Pumps Gas Solar storage & instant storage & instan
Slide 7: German Market Update
GERMAN MARKET UPDATE ‘000 PCS Germany1 example: heating generators market (volume) Comments Gas & Oil, solid fuel Heat Pump • Historically (2013-22): +4% volume growth, replacement market, shift to higher efficiency and renewable solutions +34% -46% • 2023: exceptional peak driven by incentives and
Slide 8: Agenda
AGENDA Highlights Financials Outlook Appendix 8
Slide 9: Solid Q2 Organic Growth, Partially Offset by FX
SOLID Q2 ORGANIC GROWTH, PARTIALLY OFFSET BY FX NET REVENUES1, €M +5.2% 3.2% 644 Q2 comments 3.6% 612 • Heating: continued recovery -1.6% Q2 − Europe: back to growth − Americas: continuing positive trend, FX headwind • Water heating: organically positive, FX headwind Q2 2024 Organic FX Perimeter Q2
Slide 10: Europe Growth Accelerating QoQ, RoW Negatively Affected by FX
EUROPE GROWTH ACCELERATING QOQ, ROW NEGATIVELY AFFECTED BY FX NET REVENUES1, €M Share of net revenues, %, H1 2025 Europe Asia Pacific & MEA Americas 72% 18% 10% +2.6% w/o Russia +3.2% +1.8% w/o Russia 914 930 +5.3% 447 471 +0.6% -0.6% -0.2% 233 234 -0.6% 116 116 58 57 128 128 2024 2025 2024 2025 202
Slide 11: Acceleration of Investments Weighs on Margin Improvement
ACCELERATION OF INVESTMENTS WEIGHS ON MARGIN IMPROVEMENT €M, % OF NET REVENUES Adj. EBIT1 Q2 comments +15.5% • Margin improved by 50bps YoY, driven by efficiency initiatives and +0.6 p.p. moderate operating leverage offset by acceleration of investment in go-to-market, digital and R&D 66 5.1% 1.0 57
Slide 12: FCF Performance Improving in H1
FCF PERFORMANCE IMPROVING IN H1 €M Free Cash Flow Q2 comments • Strong NWC discipline: -3.0 p.p. YoY at constant perimeter; Q2 stable vs. Q1 despite seasonality − Perimeter variation drives the quarterly NWC increase 27 • CapEx increased YoY as planned 25 20 15 Net Working Capital, % of rolling net
Slide 13: Net Debt Increase Due to Seasonality and Distribution to Shareholders
NET DEBT INCREASE DUE TO SEASONALITY AND DISTRIBUTION TO SHAREHOLDERS €M Non-cash items include: MtM, IFRS16 variation and exchange rate effect on the Net Financial Indebtedness -579 -14 -14 -16 -29 -1 -654 Adj. net cash/(Debt) FCF Cash outflow Financial, FX Distribution to Non-cash items Adj. net c
Slide 14: Solid Net Financial Position
SOLID NET FINANCIAL POSITION €M Q2 comments 357 Liquidity 254 221 • Non-current bank debt duration at 3.2 years: ‒ c.90% of maturities in 2027-2031 • Low sensitivity to inflation: ~70% of long-term debt Debt -975 -960 -901 at fixed-rate or hedged • Additional 0.9 €BN committed unused credit lines to
Slide 15: Agenda
AGENDA Highlights Financials Outlook Appendix 15
Slide 16: 2025 and Mid-Term Guidance
2025 AND MID-TERM GUIDANCE 2025: reversing the trend, drive internal efficiencies 2025 guidance Mid-term guidance Top line • Organic revenues between +1% and +3% YoY like-for-like1 (previously between 0% and +3%) • Mid-single-digit organic growth Profitability (assuming neutral FX) • Adj. EBIT 7+%,
Slide 17: Q&A Session
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Slide 18: Agenda
AGENDA Company Profile Deep Dive into Q2/H1 2025 Financials 18
Slide 19: Our Equity Story
OUR EQUITY STORY Champion of Thermal Comfort, with solid growth ➢ Balanced presence in Water Heating and Climate Comfort1 ➢ Leading market position in 40+ countries worldwide ➢ Focused on residential market – demand driven by replacement in Europe/Americas and penetration in Asia Pacific & MEA ➢ Key
Slide 20: Our Global Presence
OUR GLOBAL PRESENCE H1 2025 AT HOME AROUND THE WORLD H1 2025 NET REVENUES >10k employees 18% ASIA/PACIFIC & MEA 72% EUROPE 40 COUNTRIES 170+ MARKETS 10% AMERICAS 29 PRODUCTION SITES 28 R&D CENTERS HEADQUARTERS LEGAL SEAT COMMERCIAL OPERATIONS PRODUCTION SITE PRODUCTION SITE + R&D 20
Slide 21: Story of Solid and Continuous Growth, Organic and Inorganic
STORY OF SOLID AND CONTINUOUS GROWTH, ORGANIC AND INORGANIC Net revenues €M CAGR 2001-24: c.8% 3,092 2,633 2,379 1,987 497 2001 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: figures adjusted for non-recurring events or transactions, restructuring or employment
Slide 22: Key Drivers of Value Creation
LAST 10-YEAR M&A TRACKRECORD 2014 2015 2016 2017 2019 2021 2022 2023 2024 2025 A CCESS TO N EW MARKETS / K EY D RIVERS OF VALUE C REATION TECHNOLOGIES Condensing Boiler Market Components add-on F LEXIBLE ACQUISITION STRUCTURE High End WHB Platform Components add-on WHE Specialty Stainless Steel WHE
Slide 23: Stepping Up Efforts on Efficiency Initiatives
STEPPING UP EFFORTS ON EFFICIENCY INITIATIVES 70-80 €M efficiency initiatives in FY 2024 2025-2027 “Fit-2-Win” program OpEx Immediate impact: • Labor costs: org. optimization, hiring freeze • Indirect costs: travel, rental, services • Technology: developments re-prioritization Goal Simplify operatin
Slide 24: Serving All Our Customers' Needs Globally with an Extensive Portfolio of Brands
SERVING ALL OUR CUSTOMERS' NEEDS GLOBALLY WITH AN EXTENSIVE PORTFOLIO OF BRANDS STRATEGIC GLOBAL BRANDS The global expert in heating and water The European high end heating solutions The German indoor climate expert which heating, offering a wide range of provider that covers the most advanced offer
Slide 25: Distribution Channels: Mainly B2B2C
DISTRIBUTION CHANNELS: MAINLY B2B2C Sanitary Installers Wholesaler Installers priorities Distributor Re-sellers/Installers • Quality of the relationship • Ease of installation and maintenance Installers End-User • Training • Pre-sales and after-sales support Modern Trade • High efficiency of the pro
Slide 26: Current Regulation in the European Heating Market
CURRENT REGULATION IN THE EUROPEAN HEATING MARKET: SUMMARY OF OUR MAIN COUNTRIES EU: Energy Performance of Buildings Directive (EPBD): Stop incentives for «stand-alone boilers powered by fossil fuels» from 2025. Push towards decarbonisation technologies, reduction of energy consumption of existing b
Slide 27: Our Relentless Commitment to Sustainability
OUR RELENTLESS COMMITTMENT TO SUSTAINABILITY ENCRYPTED IN OUR DNA… …SHAPING OUR FUTURE .1967 .2023 “There is no value in the economic success of any industrial initiative, unless Releases Road to 100, its ESG roadmap to 2030; it is accompanied by a commitment to social progress”. ARISTIDE MERLONI, F
Slide 28: ESG Achievements
ESG ACHIEVEMENTS 2023 2024 2025 Bronze Medal1 Silver Medal1 Score: 57/100 Score: 68/100 Global CSA Score2 27/100 Global CSA Score2 39/100 Household Durable Building Products Ratings CSA Score avg.: 19/100 CSA Score avg.: 30/100 improvement B3 BBB3 (Household Durable sector) (Building Products sector
Slide 29: Shareholders and Voting Rights
SHAREHOLDERS AND VOTING RIGHTS AS OF 17 JUNE 20251 N. of shares - mln Economic rights - % Ordinary listed shares % stake Merloni Holding Spa Market * Share 125.5 17.0% Amaranta Srl 2.1% 20.9% capital: 62.0% 15.4% Centrotec SE Treasury shares 1.2% Market * 3.5% 372.6mln 225.0 Treasury shares shares 2
Slide 30: Agenda
AGENDA Company Profile Deep Dive into Q2/H1 2025 Financials 30
Slide 31: Net Revenues by Division
NET REVENUES BY DIVISION Share of net revenues, NET REVENUES1, €M %, H1 2025 Thermal Comfort Components Burners 93% 4% 3% +1.1% 1,190 1,203 +3.5% 579 599 +10.0% -0.2% +11.5% -0.4% 42 46 42 42 21 24 21 21 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Q2 H1 Q2 H1 Q2 H1 Q2 comments: Impro
Slide 32: Historical Quarterly Growth by Region
HISTORICAL QUARTERLY GROWTH BY REGION NET REVENUES, YOY 2021 2022 20232 20241 2025 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Europe +6.6% +18.1% +17.5% +18.2% +15.3% +14.1% +16.2% +59.6% +50.8% +46.7% +38.5% +48.5% -18.2% -20.3% -17.1% -10.1% -16.4% +2.1% +3.2% Asia Pacific & +5.6% +2
Slide 33: Historical Seasonality
HISTORICAL SEASONALITY Net revenues Adj. EBIT Cumulated FCF Quarterly weight on FY Quarterly weight on FY Quarterly trend Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1H 9M FY Average 2017-24 Average 2017-24 Average 2017-24 Demand for heating-related products Operating leverage gives margins an The last quarter of th
Slide 34: Q2 Income Statement – Like-for-Like
Q2 INCOME STATEMENT – LIKE-FOR-LIKE €M 4 Q2 2025 Q2 2024 % change Net revenue 623.6 611.5 2.0% EBITDA 94.4 6.6 n.m. % margin 15.1% 1.1% Adjusted EBITDA 59.2 53.9 n.m. % margin 9.5% 8.8% EBIT 59.9 (27.1) n.m. % margin 9.6% (4.4%) Adjusted EBIT 29.8 26.1 14.2% % margin 4.8% 4.3% Note: Ariston Thermo R
Slide 35: H1 Income Statement – Reported
H1 INCOME STATEMENT – REPORTED €M 4 H1 2025 H1 2024 % change Comments Net revenue 1,291.8 1,274.4 1.4% EBITDA 158.1 64.4 n.m. • Reported figures: Ariston Thermo Rus LLC % margin 12.2% 5.1% deconsolidated from end-April in 2024 and reconsolidated from end-March in Adjusted EBITDA 124.5 113.2 10.0% 20
Slide 36: Reclassified H1 Cash Flow Statement
RECLASSIFIED H1 CASH FLOW STATEMENT €M H1 2025 H1 2024 Change Comments EBITDA 158.1 64.4 93.7 • Cash absorption from Net Working Capital improved vs H1 2024 Tax paid (21.7) (19.2) (2.5) • EBITDA improvement • Higher CapEx vs H1 2024, in line with our Provisions and other changes from operating activ
Slide 37: Net Financial Indebtedness
NET FINANCIAL INDEBTEDNESS €M 4 Comments 30/06/2025 31/12/2024 30/06/2024 • Non-current bank debt duration at 3.2 Liquidity 221.4 357.1 254.4 years: ‒ c.90% of maturities in 2027-2031 minus: Current financial indebtedness (153.1) (148.2) (69.1) • Low sensitivity to inflation: ~70% of long- term debt
Slide 38: Disclaimer
DISCLAIMER This document contains forward-looking statements that relate to future events and future operating, economic and financial results of Ariston Group. By their nature, forward-looking statements involve risk and uncertainty because they depend on the occurrence of future events and circums
Slide 39: Thank You
THANK YOU Investor Relations contacts +39 02 8567 2317 investor.relations@ariston.com