Lu-ve S.p.a. · MIL:LUVE
Lu-ve — H1 2025 Earnings Presentation
60 slides from Lu-ve's earnings presentation, Sep 9, 2025
Slide 1: H1 2025 results
H1 2025 results 9th September 2025
Slide 2: Executive Summary – H1-2025
Executive Summary – H1-2025 Back to Growth in Q2 – Record Order Backlog + 31.7% YoY Record EBITDA margin in Q2-25 Supported by Volumes Economics Financials Strategy • In Q2-25, sales of • Leverage at 1.17x • Focus on order intake products increased by EBITDA adj LTM (1.48x to return to growth in 3.7
Slide 3: H1-25 Financial Highlights
H1-25 Financial Highlights In Q2-25 All-Time Record EBITDA and Margin € millions H1 2024 H1 2025 Q2 2024 Q2 2025 2024 FY LTM Sales 296,4 294,7 154,5 159,4 589,1 587,4 Growth % -7,5% -0,6% -8,5% 3,2% -4,6% -1,0% EBITDA adjusted 43,0 43,1 23,3 24,8 82,5 82,7 EBITDA % 14,5% 14,6% 15,1% 15,6% 14,0% 14,1
Slide 4: H1-25 – Revenues Breakdown
H1-25 – Revenues Breakdown Amid volatile markets, benefits from diversification Products H1 24 % H1 25 % ∆% € 000 Heat Exchangers 135.7 45.8% 144.6 49.1% 6.6% Air Cooled Equipment 148.8 50.2% 139.7 47.4% -6.1% Glass Doors 8.3 2.8% 6.3 2.1% -23.3% Total sales of products 292.8 98.8% 290.6 98.6% -0.7%
Slide 5: Sales by application and market
Sales by application and market Benefit of Diversification of Applications Back to Growth in Q2-25 SBU components: +10.2% in Q2-25 vs -0.2% in Q1-25 • Good growth in refrigeration and tumble dryers • Good signs of recovery in heat pump heat exchangers • Negative trend in air conditioning and mobile
Slide 6: EBITDA Bridge Analysis H1-25 vs H1-24
EBITDA Bridge Analysis H1-25 vs H1-24 • In Q2-25 EBITDA adj margin at 15.6% (vs 15.1% in Q2-24) • In Q2 the increase of selling prices more than offset the increase of operating cost • In Q2-25 positive impact of increased volume • No NRI in H1-24. In H1-25 NRI due to start-up costs of the air-coole
Slide 7: H1-25: From EBITDA to Group Net Income
H1-25: From EBITDA to Group Net Income EBIT adjusted – Net Income Adjusted € millions H1-24 H1-25 2024 EBITDA reported 43,0 42,2 82,5 NRI 0,9 0,0 EBITDA adjusted 43,0 43,1 82,5 D&A 15,6 15,3 31,8 Gain (loss) of non current assets 0,0 0,1 (0,2) EBIT reported 27,4 26,9 50,6 Net financial income (loss)
Slide 8: Impact of IFRS on Interest Costs
Impact of IFRS on Interest Costs € millions H1-24 H1 -25 2024 Cash interest cost (7,6) (6,8) (13,8) Cash interest income 4,7 6,4 9,5 Net realized FX gain (cost) (0,1) 2,0 (0,2) Net cash financial costs (A) (2,9) 1,6 (4,5) Derivatives fair value (0,4) (1,6) (5,1) Amortization costs 2,2 0,2 4,1 Unreal
Slide 9: Net Income Adjusted Bridge Analysis H1-25 vs H1-24
Net Income Adjusted Bridge Analysis H1-25 vs H1-24: +9.5% Net income adjusted increased by +9.5% (1) Due to rounding, numbers presented throughout this chart may not add up precisely to the totals provided (2) Source: management analysis of consolidated results as of 30/06/2025 9
Slide 10: TNWC back toward M/LT Guidance
TNWC back toward M/LT Guidance 30/06/2024 Days 31/12/2024 Days 30/06/2025 Days € Millions Stock 117.1 71 101.1 62 112.6 69 A/receivable 115.0 70 103.0 63 121.6 75 Working capital 232.1 204.0 234.3 A/payable 126.2 125 108.3 108 131.8 131 Net working capital 105.8 64 95.7 59 102.5 63 % on net sales LT
Slide 11: Net cash generation adjusted
Net cash generation adjusted H1-25 LTM : € 53.4 M Net cash / (net debt) €m Net financial position as of June 2024 ( 118.9) Accelerated capex program above maintenance level Net financial position as of June 2025 ( 96.4) Delta in net financial position 22.5 22.5 In 2022 and 2023 temporary working
Slide 12: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation • In H1-25 cash flow from operation equal to € 30.3M (10.3 % of sales) vs € 38.2 M (12.9% of sales) in H1-24 • LTM net cash generation adjusted equal to € 53.4 M • The net financial position as of June 2025 decreased by €22.5 million compared to June 2024 (€118.9
Slide 13: Future Developments and Closing Remarks
Future Developments and Closing Remarks • Focus on Datacenter and Industrial Projects • Focus on automation, process optimization and cost reduction • Focus on supply chain optimization Strategy • Further product range rationalization • Second stage of plant expansion in US in progress • New capex r
Slide 14: Annexes
Annexes 14
Slide 15: Income Statement as of 30/06/2025
Income Statement as of 30/06/2025 Consolidated Profit & Loss H1-24 % H1-25 % Delta % Reclassified (000 Euro) Sales and operating income 296.382 100,0% 294.708 100,0% -0,6% Purchases of materials (150.086) -50,6% (153.623) -52,1% Inventory increase (decrease) 5.019 1,7% 12.450 4,2% Services (38.148)
Slide 16: Balance Sheet as of 30/6/2025
Balance Sheet as of 30/6/2025 Consolidated Balance Sheet % net invested % net invested % net invested 30/06/2024 capital 31/12/2024 30/06/2025 capital Reclassified (000 Euro) capital Net intangible assets 91.251 88.080 84.455 Net tangible assets 207.561 213.621 215.139 Pre-paid taxes 11.347 11.227 1
Slide 17: Short company profile
Short company profile
Slide 18: Business Highlights
Business Highlights Business Unit Products % of Sales Applications Type of Customer (1) Heat exchangers • Refrigeration (food cold chain) • Commercial air conditioning and 46% ventilation OEM • Special applications (whitegoods, Business Unit “mobile applications” etc.) Components Glass doors for ref
Slide 19: Diversification to Avoid Cyclicality
Diversification to Avoid Cyclicality Diversified applications, segments and markets with uncorrelated business cycles Focus on markets with expected high potential growth Business growth sustained by megatrends 19 19
Slide 20: Seculars Trends Increase the Addressable Market
Seculars Trends Increase the Addressable Market Cold chain and Urbanization & refrigeration consumer habits Electrification (heat pumps / Global warming district heating) Digitalization Regulations (F-gas etc.) (data centers, IOT) Food safety Safety in supply chains Decarbonization Air treatment & v
Slide 21: Secular Trends Increase total Addressable Market
Secular Trends Increase total Addressable Market Drivers and trends What LUVE does Acceleration of the transition to “green capex” by major • LUVE was a first mover in green customers to: technologies applied to heat exchangers • Adopt refrigerants with low GWP • Currently, ≈ 53.5% of sales are alre
Slide 22: Track Record of Profitable Organic Growth and Acquisitions
Track Record of Profitable Organic Growth and Acquisitions 22 22
Slide 23: Strategy
Strategy Create sustainable competitive advantage through: Product focus and innovation Technology enhancements Production plants efficiency and flexibility First mover in "green tech" Reduce risk profile through: Widening product applications in uncorrelated sectors Increasing internati
Slide 24: LU-VE's Medium Term Value Creation Framework
LU-VE’s Medium Term Value Creation Framework • High Single Digit growth in sales volume (organic) • EBITDA margin toward 14/15% thanks to scale and efficiency capex • NWC on sales: Mid Double Digit (net of extraordinary fluctuation) • Growth capex: € 20/30 m p.a. • Tax rate: 20-21% • ESG targets in
Slide 25: Pillars of a Sustainable Competitive Advantage
Pillars of a Sustainable Competitive Advantage Sources LU-VE business model Technological • Patent and tech innovation Advantage • Leadership in R&D: laboratories / CFD / nanotechnologies / IOT • Market leadership: ca. 50% (1) of sales are in market segments where Lu-Ve is market leader Cost advanta
Slide 26: Years of experience in heat exchanger technology
GLU-VE ver 600 YEARS OF EXPERIENCE aoe en IN HEAT. EXCHANGER TECHNOLOGY, (spinorecH =! 3 GLU-VE!l| | ny OMEN® i] (=) Kr) (=7) — u c L 26
Slide 27: Organization: 20 Production Units
Organization: 20 Production Units Italy Finland 34 SALES COMPANIES Poland India • AUSTRIA – VIENNA • BENELUX – BREDA-UCCLE • CHINA – TIANMEN-CHANGZHOU • CZECH REPUBLIC - NOVOSEDLY • DENMARK - AARHUS • FINLAND - VANTAA • FRANCE - LYON • GERMANY – STUTTGART • Over 1.080.000 sqm. total surface area (30
Slide 28: Metal Price Impact on Profitability
Metal Price Impact on Profitability Metal influence on Sale contract Main application Metal fluctuation management product price Frame contracts Mainly in the Mechanical price • Price adjusted through formulas linked to Components SBU adjustment through metal publicly available quotation (average fo
Slide 29: The Pricing Power in 2021
The Pricing Power in 2021 H1 + H2 2021 29
Slide 30: The Pricing Power in 2022
The Pricing Power in 2022 EBITDA FY 2022 vs 2021 + 29.6% • EBITDA adjusted grew by 29.6% thanks to volumes increase and pricing power • In 2022, non-recurring items are M&A transaction costs and extraordinary bonuses to employees (no adjustments in 2021) (1) Due to rounding, numbers presented throug
Slide 31: EBITDA 2023 Bridge Analysis
EBITDA 2023 Bridge Analysis FY 2023 vs 2022 = + 1.7% FY 2023 vs 2018 = + 108.6% • EBITDA adjusted grew by 1.7% thanks to cost savings • In 2023, non-recurring items are new plant in Belluno start-up costs and extraordinary contribution to flooded populations of Emilia Romagna (1) Due to rounding, nu
Slide 32: 2023 Net Income – Net income Adjusted Bridge Analysis
2023 Net Income – Net income Adjusted Bridge Analysis +5.4% (1) Due to rounding, numbers presented throughout this chart may not add up precisely to the totals provided (2) Source: management analysis of consolidated results as of 31/12/2023 (3) Net income adjusted considers the depreciation of “pur
Slide 33: Performance since IPO (2015)
Performance since IPO (2015) Strategic targets identified since 2015 Actual results: 2015 – 2024 CAGR Organic Total Organic growth 5/6% p.a. Sales 8.6% 12.0% (CAGR) EBITDA 10.4% 13.6% 10-17% on sales NWC Strict control In 22/23 temporary increase of safety stock due to uncertain supply chain Growth
Slide 34: Financial Highlights
Financial Financial Hi Highlights Turnover 2009-2024 EBITDA ADJ (2) 2009-2024 CAGR +12% since IPO CAGR +7.5% Net Income reported 2009-2024 Net Cash Generation ADJ (2) 2013-2024 AVG = €24.2M • All data in € millions • (1) 2014-2024 based on IFRS – 2009-2013 based on ITA GAAP • (2) Adjustments to excl
Slide 35: Resilient business model and improving profitability
Resilient business model and improving profitability Since H2 2019, dilutive effect on margin percentage due to lower profitability of AL AIR (≈ 125bps) In 2020 impact of Covid and lockdown In H1-20, volumes decreased by 10.4% LFL due to lockdown In 2021, volumes increased by 14.7% In 2022
Slide 36: Shareholders Structure
Shareholders Structure (1) 45,82% (3)(4) 16,00% (3) (4) 38,18% (3) On May 29, 2025, the Board of Directors approved a proposal to strengthen increased voting rights, and on July 1, 2025, the Shareholders' Meeting approved the corresponding resolution. No shareholder exercised the right of withdrawal
Slide 37: LU-VE presence on the Italian Stock Exchange
LU-VE presence on the Italian Stock Exchange STAR segment MID Cap index 21st MTA September 19th 2022 AIM 21st June September 9th July 2017 2022 2015 37
Slide 38: ESG
LU-VE GROUP me leadership with passion ¢
Slide 39: LU-VE Group Approach to ESG Topics
LU-VE Group Approach to ESG Topics Global Scenario Paris Green Deal – Horizon, IPPC, Sixth 29th United Nations climate 2015 Agreement 2019 Kigali Amendment Assessment Report change conference (COP29) 1985 2017 2020 2021 2022 2023 2024 SUSTAINABILITY SUSTAINABILITY Sustainability TARGETS LU-VE SUSTAI
Slide 40: Our Sustainability Vision in 4 pillars
Our Sustainability Vision in 4 pillars Our vision is linked to the material topics that we pursue so that this vision can take shape in the real world. The Sustainable Development Goals (SDGs) have been defined at global level by the United Nations to identify global priorities for development by th
Slide 41: The Sustainability Governance
The Sustainability Governance In 2022 LU-VE Group set up a corporate Sustainability Steering Committee: this is where the strategic lines will be plotted and the progress of our performance will be evaluated. The new figure of Group General Manager (GM), introduced in 2023, has been also involved in
Slide 42: The Sustainability Plan
The Sustainability Plan The 2024 was the second year of implementation of LU-VE Group’s 2023-2025 Sustainability Plan. It was prepared by the Corporate Sustainability Steering Committee, reviewed by the Control and Risk Committee, and approved by the Board of Directors in February 2023. All the targ
Slide 43: Climate change mitigation targets
Climate change mitigation targets Considering climate targets, LU-VE Group: A. Reduced its greenhouse gas emissions (Scope 1 and Scope 2 according to the Market-based methodology) by 15%, considering the 2022 baseline. Achievement of the target - defined through science-based methodology - was possi
Slide 44: Resources for climate change mitigation and adaptation
Resources for climate change mitigation and adaptation As part of the 2026-2028 Business Plan, LU-VE Group has planned investments (CAPEX) with the aim of mitigating impacts from climate change mitigation and adaptation with a total value of €8.5 million, of which A. Climate change mitigation: €7 mi
Slide 45: EU Taxonomy and the eligible activities of the LU-VE Group
EU Taxonomy and the eligible activities of the LU-VE Group LU-VE Group’s activities eligible to the EU Taxonomy, because of its contribution to the objectives: «Climate Change Mitigation» (CCM) - Delegated Regulation (EU) 2023/2485 and «Transition to a circular economy» (CE) - Delegated Regulation (
Slide 46: Climate Risks analysis for the Industrial Plan 2025-2028
Climate Risks analysis for the Industrial Plan 2025-2028 PHYSICAL CLIMATE RISKS ANALYSIS • LU-VE Group already required a risk assessment for its production facilities in 2022. This analysis is considered up-to-date and also applicable for the financial year 2024 as it is based on IPCC (Intergovernm
Slide 47: Helping Customers Reach their Sustainability goals
Helping Customers Reach their Sustainability goals FIRST MOVER IN GREEN TECH LU-VE GROUP FOR CO2 Over the last 10 years, LU-VE Group’s technological leadership has been strengthened thanks to the development fluids and energy-efficient motors. 47 The graph “% of sales with EC/AC motors” shows for 20
Slide 48: Sustainability Ambassadors' Journey
Sustainability Ambassadors’ Journey: leverage our sustainability culture The “Sustainability Ambassadors’ Journey“, our initiative launched globally in 2023 to increase sustainability awareness within the LU-VE Group and accelerate sustainable change within the company, continued in 2024. Among the
Slide 49: Decarbonization and heat pumps
Decarbonization and heat pumps • Heat pumps are a decisive element for achieving the goal of zero “net carbon emissions” • LU-VE Group has designed special products to make the best use of heat sources for heat pumps: thus supporting this market which in 2022 recorded a strong growth HEAT PUMPS FOR
Slide 50: LU-VE Group
LU-VE GROUP me leadership with passion ¢
Slide 51: M&A activity (2015-2022)
M&A activity (2015- 2022) Four acquisitions completed Sales acquired: € 145 m Amount invested: € 129 m Average EBITDA multiple paid = 7.0x ACC Wanbao asset deal 51
Slide 52: Refrion (Italy) (2022)
Refrion (Italy) (2022) Main financial terms Strategic rationale • Acquisition completed on 30th of March • Refrion specializes in the production and 2022 marketing of air heat exchangers with adiabatic technology, which enables • Acquisition of 75%, plus put&call on reductions to be made in energy t
Slide 53: ACC (Italy) (2022)
ACC (Italy) (2022) Main financial terms Strategic rationale • Transaction completed on 29th of July • Access to modern industrial plant at 2022 cheap conditions (40.000 sqm) • Contracting of selected assets and employees of former ACC under receivership (based on Belluno – Italy) • Hiring skilled pe
Slide 54: Tecnair LV (Italy) (2022) - Divestiture
Tecnair LV (Italy) (2022) - Divestiture Main financial terms Strategic rationale • Transaction completed on 21st of March • Limited integration with the LUVE 2022 Group • Sale to Systemair of the entire • Product range in competition with large participation (80%) in Tecnair LV customers of LUVE • T
Slide 55: Acquisition of Alfa Laval Air Heat Exchanger Business: Overview (2019)
Acquisition of Alfa Laval Air Heat Exchanger Business: Overview (2019) On December 12th, 2018, Lu-Ve signed a binding contract to acquire 100% of Alfa Laval Air Heat Exchanger division (“AL Air”) of Alfa Laval Group. The acquisition was completed on April 30th, 2019 (1) Purchase price paid at cl
Slide 56: Acquisition of Alfa Laval Air Heat Exchanger Business: Rationale (2019)
Acquisition of Alfa Laval Air Heat Exchanger Business: Rationale (2019) Becoming the third largest player in the world in the air-cooled products Strengthening market position in Europe in industrial cooling business unit, achieving a leading position Enlargement of product applications (engin
Slide 57: ZHT (USA) (2018)
ZHT (USA) (2018) On June 26, 2018, LUVE completed the acquisition of Zyklus Heat Transfer Inc (ZHT), based in Jacksonville (Texas) Luve acquired 100% ZHT is specialized on heat exchanger for the US market Mr. Zachary Riddleseperger – founder and 100% owner – remains as VP Operation Three y
Slide 58: Spirotech (India) (2016)
Spirotech (India) (2016) • Binding contract to acquire 95% of Spirotech signed on 18/9/2016 • Spirotech is a leading and fast-growing Indian producer of heat exchanger for HVAC industry, home appliances and transportation: • turnover of € 21 millions with an average EBITDA margin > 20% • doubled the
Slide 59: Disclaimer
Disclaimer • This presentation has been prepared by LU-VE S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. • For further details on the LU-VE Group, reference should be made to publicly available information. • Statements contained in this pres
Slide 60: Our best days have yet to be lived
OUR BEST DAYS HAVE YET TO BE LIVED Nazim Hikmet