Slide 1: Fourth Quarter and Full Year 2023 Results
FOURTH QUARTER AND FULL YEAR 2023 RESULTS 5TH MARCH 2024
Slide 2: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 2
Slide 3: All Time High Revenues and Profit
ALL TIME HIGH REVENUES AND PROFIT 2023 Net revenues EBIT Adj. Free Cash Flow1 Q4 805 €M 87 €M 136 €M +23.2% YoY 10.8% margin vs. 114 €M in 2022 Net revenues EBIT Adj. Net Income Adj. Free Cash Flow1 FY 3,092 €M 314 €M 212 €M 112 €M +30.0% YoY 10.2% margin +30.0% YoY vs. 32 €M in 2022 1. Free Cash Fl
Slide 4: A Stronger Group Thanks to Wolf-Brink Acquisition, Adding Scale and Capabilities
A STRONGER GROUP THANKS TO WOLF-BRINK ACQUISITION, ADDING SCALE AND CAPABILITIES FY2023 1 2 3 4 5 CHAMPION OF UNIQUELY BALANCED GLOBAL FOOTPRINT OF PROFITABLE GROWTH SOLID FINANCIAL SUSTAINABLE COMFORT ACROSS HEATING, AIR 40+ MARKETS, COMBINING ORGANIC PERFORMANCE AT TOP- ACROSS ALL STAGES OF TREATM
Slide 5: Products and Solutions: New Launches in 2H 2023
PRODUCTS AND SOLUTIONS: NEW LAUNCHES IN 2H 2023 ARISTON NET: 1 APP COVERING HEATING AND WATER HEATING SOLUTIONS • Easy, intuitive and accessible user experience • Energy saving and consumption tips • Amazon Alexa and Google Assistant voice control compatible • Demand Response functionalities >4 app
Slide 6: ESG: Continuing Strong Contribution
ESG: CONTINUING STRONG CONTRIBUTION FY2023 Avoided CO2 Renewable technologies H2-ready gas boilers1 26 mln tons 49% 75% +7 mln tons in 2023 +4 p.p. vs. 2022 +40 p.p. vs. 2022 vs. 2020 base year vs. 51% fossil fuel products Certificated 20% H2-ready, revenues in Europe2 revenues in Europe2 of total g
Slide 7: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 7
Slide 8: Strong Growth Driven by Acquired Perimeter
STRONG GROWTH DRIVEN BY ACQUIRED PERIMETER NET REVENUES, €M +23.2% 28.2% 805 • +23.2% growth -2.2% • Acquired perimeter continued to grow, 653 though at lower pace vs. previous quarters Q4 -2.8% • Pro-forma1 at -3.2% • Organic impacted by soft heating markets in Europe • FX headwind mainly in Asia P
Slide 9: Organic Slow Down in 2023, After Years of Strong Organic Growth
ORGANIC SLOW DOWN IN 2023, AFTER 2 YEARS OF STRONG ORGANIC GROWTH NET REVENUES GROWTH YOY, % OF €M Growth Organic growth Italy’s 110% Superbonus discontinuity (mid-February) Acquisition Acquisition 37.6% 31.5% 28.9% 23.8% 24.3% 23.2% 18.7% 14.5% 13.6% 13.0% 7.6% 6.4% 5.9% 4.2% 2.5% -3.6% -2.8% -4.5%
Slide 10: Growth Concentrated in Germany (Wolf and Elco)
GROWTH CONCENTRATED IN GERMANY (WOLF AND ELCO) Share of net revenues, NET REVENUES, €M %, FY2023 Organic M&A Europe Asia Pacific & MEA Americas 74% 17% 9% +48.5% 2,281 798 1,537 -1.1% +38.5% 542 536 -8.6% 580 -4.4% 10 -3.9% 419 182 300 275 147 140 526 88 85 138 2 2022 2023 2022 2023 2022 2023 2022 2
Slide 11: >10% EBIT Adj. Margin
>10% EBIT ADJ. MARGIN €M, % OF NET REVENUES EBIT Adj. Comments +41.2% • Q4 EBIT Adj. % margin at 10.8% thanks to 314 1.0 seasonality 10.2% 0.9 • FY EBIT Adj. +0.8 ppt vs. 2022: pricing, mix, 0.8 sourcing productivity and acquisition synergies more than offsetting cost 223 0.7 inflation and lower vol
Slide 12: Cash Flow from Operations Improved YoY
CASH FLOW FROM OPERATIONS IMPROVED YOY €M Free Cash Flow +19.3% Comments • +136 €M positive cash generation concentrated in Q4 136 2.5x • Working capital improvement vs. Q3, mainly driven by inventory reduction 114 112 120 • Continued to invest for long term on technologies, operations flexibility &
Slide 13: 1.4x Leverage After Transformational Wolf-Brink Acquisition
1.4X LEVERAGE AFTER TRANSFORMATIONAL WOLF-BRINK ACQUISITION €M 99 112 -651 Non-cash items include: MtM, IFRS16 variation and exchange rate effect on the Net Financial Indebtedness -48 -21 -9 -57 -575 Net FCF Cash outflow Dividends Financial, Buyback of Non-cash items Net cash/(Debt) 2 cash/(Debt) fo
Slide 14: Sound Balance Sheet
SOUND BALANCE SHEET €M 4 Liquidity and Debt Comments end of year balance • Liquidity increased in Q4 thanks to positive FCF; YoY variation driven by Wolf-Brink Liquidity 1,012 acquisition 461 • +0.9 €bn committed unused credit lines to fuel organic & inorganic growth • Non-current bank debt duration
Slide 15: +31% Dividend Proposal
+31% DIVIDEND PROPOSAL €/SHARE Dividend Proposal for approval by the Annual General Meeting on May 4, 2024 Dividend 0.17 €/share +30.8% 0.17 Total Payout 63.0 €M Payout ratio 33% (on reported Net Profit) 0.13 Payment date May 22, 2024 Ex-dividend date May 20, 2024 2023 2024 15
Slide 16: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 16
Slide 17: 2024 Outlook
2024 OUTLOOK 2024 a transition year Fundamentals remain strong for the mid term Top line • Water heating market expected to steadily grow • Challenging external context affecting heating demand, mainly HHP • Expected negative H1 (Germany and Italy), particularly Q1 Mid-term guidance • FY organic gro
Slide 18: Agenda
AGENDA Highlights Financials 2024 outlook Appendix 18
Slide 19: Ariston Group Product Portfolio
ARISTON GROUP PRODUCT PORTFOLIO FY 2023 4 THERMAL COMFORT DIVISION HEATING (and AIR TREATMENT) HOT WATER 94% HEAT PUMPS HYBRID SYSTEMS BOILERS 3.1€BN REVENUES FY 2023 ELECTRIC HEAT PUMPS GAS SOLAR STORAGE & INSTANT STORAGE & INSTANT DIRECT SERVICES & PARTS 3% COMPONENTS DIVISION 3% BURNERS DIVISION
Slide 20: Net Revenues by Division
NET REVENUES BY DIVISION Share of net revenues, NET REVENUES, €M %, FY2023 Organic M&A Thermal Comfort Burners Components 94% 3% 3% +33.1% 2,911 2,187 808 +26.4% -3.1% -7.4% 759 -6.3% 96 -21.1% 96 88 600 184 93 28 26 25 20 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 Q4 FY Q4 FY Q4 FY
Slide 21: Historical Seasonality
HISTORICAL SEASONALITY Net revenues EBIT Adjusted 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 2017-23 Average 2017-23 Average 2017-23 Demand for heating-related products Operating leverage gives margins an The last quarter o
Slide 22: FY Income Statement
FY INCOME STATEMENT €M 4 Income statement FY 2023 FY 2022 % change Net revenue 3,091.8 2,378.8 +30.0% Comments EBITDA 417.1 283.5 +47.1% • Q4 EBIT Adj. % margin at 10.8% thanks to % margin 13.5% 11.9% seasonality EBITDA adjusted 422.2 305.3 +38.3% • FY EBIT Adj. +0.8 ppt vs. 2022: pricing, % margin
Slide 23: Q4 Condensed Income Statement
Q4 CONDENSED INCOME STATEMENT NET REVENUES, €M 4 Q4 2023 Q4 2022 % change Net revenue 804.8 653.5 +23.2% EBITDA 108.8 91.0 +19.5% % margin 13.5% 13.9% EBITDA adjusted 115.3 103.8 +11.1% % margin 14.3% 15.9% EBIT 61.4 68.4 -10.2% % margin 7.6% 10.5% EBIT adjusted 87.0 83.1 +4.7% % margin 10.8% 12.7%
Slide 24: FY Cash Flow Statement
FY CASH FLOW STATEMENT €M FY 2023 FY 2022 Change Comments EBITDA 417.1 283.5 133.6 • +136 €M positive cash generation concentrated in Q4 Tax paid (74.0) (35.4) (38.6) • Working capital improvement vs. Q3, mainly driven by inventory reduction Provisions and other changes from operating activities 24.
Slide 25: FY 2022 FCF Reconciliation
FY 2022 FCF RECONCILIATION New definition Previous definition FY 2023 FY 2022 FY 2022 EBITDA 417.1 283.5 EBITDA 283.5 IFRS16 lease payments (32.7) (23.1) IFRS16 lease payments (23.1) Paid taxes (74.0) (35.4) Paid taxes (35.4) No change Change in working capital (63.8) (115.8) Change in working capit
Slide 26: Net Financial Indebtedness
NET FINANCIAL INDEBTEDNESS €M 4 31/12/2023 31/12/2022 Comments Liquidity 461.3 1,011.6 • Liquidity increased in Q4 thanks to positive FCF; YoY variation driven by Wolf-Brink acquisition minus: Current financial indebtedness (122.5) (86.2) • +0.9 €bn committed unused credit lines to fuel organic & in
Slide 27: Historical Quarterly Growth by Region
HISTORICAL QUARTERLY GROWTH BY REGION NET REVENUES, YOY, % OF €M 2021 2022 2023 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 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% Asia Pacific & MEA +5.6% +20.3% +54.0% +52.3% +48.5% +18.0% +40.6% -1.4% +3.6% -1.7% -4.4% -1.
Slide 28: 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 29: Thank You
THANK YOU Investor Relations contacts Albert William Pozzi, Martino Bartolucci +39 02 8567 2317 investor.relations@ariston.com We kindly ask you to refrain from printing in order to minimize our impact on the environment. Thank you for your understanding and dedication to our sustainable future.