De'longhi S.p.a. · MIL:DLG
De'longhi — Investor Day (March 2021)
95 slides from De'longhi's investor day presentation, March 2021
Slide 1: Source: Internal company analysis
Source: Internal company analysis 1
Slide 2: Source: Internal company analysis
Source: Internal company analysis 2
Slide 3: Agenda and speakers schedule
TIME SUBJECT SPEAKER(S) 9:00 25' 2020 overview and the years ahead Massimo Garavaglia Chief Executive Officer 5' break 9:30 20' Commercial strategy Paul Accornero Chief Commercial Officer Opportunities of E-commerce Filippo Olearo Head of global E-retailer and E-commerce 5' break 9:55 20' Brand and
Slide 4: The agenda of the day: the speakers
De' LONGHI ANALYST DAY 2021 THE AGENDA OF THE DAY: THE SPEAKERS MASSIMO PAUL FABRIZIO NICOLA MARCO FILIPPO GARAVAGLIA. ACCORNERO, CAMPANELLA SERAFIN CENCI OLEARO C.E.O. CHIEF COMMERCIAL CHIEF MARKETING CHIEF OPERATIONS CHIEF STRATEGY HEAD OF GLOBAL OFFICER OFFICER & TECHNICAL OFFICER & CONTROL OFFIC
Slide 5: FY 2020: Resilience put to the test
De’ LONGHI ANALYST DAY 2021 FY 2020: RESILIENCE PUT TO THE TEST 2020: A YEAR OF IMPORTANT ACHIEVEMENTS... e 2 * AA 7 Ns we NS NS ss o & FS € ¥ Se ¢ & ge £% ¥ £ 9 OF eS s sy sé ° ¥ & = ¥ o s oe ey ¥ r) & ae = S$ wy ee & £ § § F $F$ SB SE RY fo) s SEF & Cy Ce S @ € ae & ye Ke Y £ a = Os vo ge ©) s = P
Slide 6: Net revenues
2500 2368 2500 30,0% 2078 2106 26,8% 1973 25,0% 2000 2000 20,0% 1500 1500 15,0% 1000 1000 12,4% 10,1% 10,0% 8,2% 500 500 5,3% 5,0% 0 0 0,0% 2017 2018 2019 2020 Q1 Q2 Q3 Q4 FY net Revenues net Revenues growth % 6
Slide 7: Gross margin, adjusted EBITDA, EBIT and A&P
60,0% 50,8% 49,9% 49,9% 49,6% 50,0% 47,7% 40,0% 30,0% 17,4% 18,5% 16,2% 20,0% 14,5% 11,4% 13,8% 14,1% 10,5% 11,8% 10,0% 5,2% 0,0% Q1 Q2 Q3 Q4 FY gross margin adjusted Ebitda Ebit 350 12,5% 12,4% 300 292,8 12,0% 245,4 250 220,6 227,2 11,7% 11,5% 200 11,2% 150 11,0% 10,9% 100 10,5% 50 0 10,0% 2017 201
Slide 8: Total espresso and food preparation markets
4,50 25,00% 4,00 30,00% 3,88 3,49 4,00 20,00% 3,50 25,30% 20,7% 25,00% 3,50 3,00 15,00% 3,00 20,00% 2,50 2,50 10,00% 2,00 15,00% 2,00 5,00% 1,50 1,50 10,00% 0,00% 1,00 1,00 -5,00% 5,00% 0,50 0,50 0,00 -10,00% 0,00 0,00% 2017 2018 2019 2020 2017 2018 2019 2020 Total Food Prep. bn€ growth % To
Slide 9: Market share by price range
> 650 450-650 250-450 100-250 0-100 0% 10% 20% 30% 40% 50% 60% 70% K. mkt.share market % of revenues Kenwood % of revenues ____________________ (1) 2017-2020, global markets excluding USA, India and China (2) % of units sold per price range, 2020, global market ex.USA, India and China 9
Slide 10: Price effect and mix effect
40 30 20 30,6 10 17,4 17,8 12,9 0 2 -7,5 -10 -20 -36,2 -52,7 -30 -40 -50 -60 2017 2018 2019 2020 Price effect Mix effect 10
Slide 11: FY 2020: COVID-19 management
De’ LONGHI ANALYST DAY 2021 FY 2020: COVID-19 MANAGEMENT PEOPLE COMMUNITY Vv SAFETY MEASURES * SUPPORT THE FIGHT v_ FLEXIBLE WORK * €3,1MTO LOCAL HEALTH SYSTEM Vv GIVE BACK: € 9.5M BONUS CLIENTS SUPPORT OF OUR BUSINESS PARTNERS ADAPTING DIGITAL MARKETING TO MEET NEW CONSUMPTION PATTERNS INVESTMENTS
Slide 12: The years ahead
De’ LONGHI ANALYST DAY 2021 THE YEARS AHEAD & VISION FOR THE LONG TERM CORE PILLARS DEVELOPMENT ‘o) FOUNDED ON SOLID VALUES REDESIGNING THE CONSUMER JOURNEY SP <P PROUD OF OUR BRANDS ACCELERATE E-COMMERCE AS @\&}) DISCIPLINED EXECUTION & vey SUSTAINABLE DEVELOPMENT GROWTH ENHANCERS (%) LONG TERM INV
Slide 13: The Group's Values
The Group's Values STRATEGY + EXECUTION = SUCCESS Food Innovation US & Asia Coffee Protect and Make it even more Achieve critical Exploit full potential develop core central to the future mass and increase in the category, category, crucial success of the relevance in further cementing for the Group
Slide 14: Source: Internal company analysis
Source: Internal company analysis 14
Slide 15: Core segments and markets
De' LONGHI ANALYST DAY 2021 CORE SEGMENTS AND MARKETS CURRENT CONSUMERS Y TOTAL EUROPE ‘§. eT UP +14.7% IN 2020 i CATEGORIES. ¥ CONTINUED GROWTH IN WESTERN EUROPE TRADITIONAL GEOGRAPHIES v ACCELERATION IN EASTERN EUROPE LEGACY RETAIL CHANNELS DéLonghiGroup | KENwoop BRAUN nutribullet. -Ariece. 15
Slide 16: Core segments and markets
De’ LONGHI ANALYST DAY 2021 CORE SEGMENTS AND MARKETS = a vy KEEP FOCUS ON ESPRESSO COFFEE vy DEFINE PORTFOLIO PRIORITIES AND GUIDE ORGANIZATIONAL FOCUS IN FOOD PREPARATION Vv AGP INVESTMENT PLAN TO MAXIMIZE RETURNS 7) / EXPANSION IN UNDERDEVELOPED MARKETS - =| DéLonghi Group | KENwoop BRAUN nutribu
Slide 17: Accelerating growth beyond core
De’ LONGHI ANALYST DAY 2021 ACCELERATING GROWTH BEYOND CORE BALANCING ONLINE AND OFFLINE UNDERDEVELOPED CATEGORIES EMERGING GEOGRAPHIES ADDITIONAL DISTRIBUTION CHANNELS NEW SHOPPERS DéLonghiGroup —_| DeLonghi) KENWOOD BRAUN nutribullet. -Ariete. 7
Slide 18: Key enablers
De' LONGHI ANALYST DAY 2021 ADDITIONAL DISTRIBUTION CHANNELS KEY ENABLERS ~al REDEMPTION & ty FOOD & GROCERY | Tovey | CORPORATE HO.RE.CA. & & WORK FROM HOME FOOD SERVICE DéLonghiGroup | DeLonghi) KENWOOD BRAUN nutribullet. -Ariete. 18 ?
Slide 19: Exploiting geographies
De' LONGHI ANALYST DAY 2021 EXPLOITING GEOGRAPHIES MAIN REGIONS OF FOCUS NORTH AMERICA & MEXICO GREATER CHINA DéLonghiGroup | Af CIS / UKRAINE REGIONS OF OPPORTUNITY AFRICA & MIDDLE EAST KENWoop BRAUN nutribullet. -Ariere. 19
Slide 20: Global regional distribution of the middle class
Global Regional Distribution of the Middle Class (all regions = 100%) 2009 2030 7 from Quelle: Kharas, Gertz. The New Global Middle Class: A Cross-Over West to East. Wolfensohn Center for Development at Brookings
Slide 21: Acceleration in Greater China
De' LONGHI ANALYST DAY 2021 ACCELERATION IN GREATER CHINA + DRIVING ESPRESSO COFFEE PENETRATION + LEVERAGING ESPRESSO LIFESTYLE APPEAL + OMNI CHANNEL TRANSFORMATION + STRATEGIC PARTNERSHIPS (ON-LINERS, INFLUENCERS, LUXURY LIFESTYLE BRANDS) DéLonghiGroup | DeLonghi) KENWooD BRAUN nutribullet. -Ariere
Slide 22: Acceleration in Greater China
De' LONGHI ANALYST DAY 2021 ACCELERATION IN GREATER CHINA Popup Keol, SEO, . . Events EVENTS Media Online Fo» ) fo: ) Flagship Stores Fos ) owe fos J Brand Builders Fairs Expo Demo Promoters Italian Journey Roasters q <P YE; a 0 aw So. TO-MaRKeT PROGRAM OF * FAIRS & EXPOS EXPERIENCE CENTERS DéLonghi
Slide 23: Acceleration in North America: coffee
De' LONGHI ANALYST DAY 2021 ACCELERATION IN NORTH AMERICA: COFFEE HOME IMPROVEMENT MARKET CONSUMERS LOOKING : TO REPLICATE THEIR yal DIY segment share (2018): >$680 BN (48 System upgrades sector share (2018): OUT-OF-HOME COFFEE >14% RITUALS AT-HOME 2022 2023 2024 =. 2025 6 ¢¢@ CAGR (2019-26): 4.5% >
Slide 24: Acceleration in North America: food
De' LONGHI ANALYST DAY 2021 ACCELERATION IN NORTH AMERICA: FOOD ESTABLISHED PRESENCE WITH LEADING BRANDS nutribullet. ldG@il BULLET. DéLonghiGroup | KENWoop BRAUN nutribullet. -Ariere. 24
Slide 25: Addressing the new geographies
De' LONGHI ANALYST DAY 2021 ADDRESSING THE NEW NEW GEOGRAPHIES ore ores |: lag mm |! © [I W a REGIONAL PRODUCTS ~ |. oe > we i DIFFERENT NEEDS rd “SS GLOBAL AND LOCAL DéLonghiGroup | DeLonghi) KENWoopD BRAUN nutribullet. -Ariere.
Slide 26: Digital and on-line
De’ LONGHI ANALYST DAY 2021 DIGITAL AND ON-LINE i DIGITAL DATA-DRIVEN GO-TO-MARKET + DTC AGTIVITIES + BUILDING DIGITAL COMPETENCE ~ LEVERAGING NEW CHANNELS + FOCUS ON E-COMMERCE DéLonghiGroup | KENWoop BRAUN nutribullet. -Ariere. 26
Slide 27: The digital journey
De’ LONGHI ANALYST DAY 2021 THE DIGITAL JOURNEY New Bean Adapt. wy echooam , “4 DéLonghi Group | kenwoop BRAUN nutribullet. -Ariece. 27
Slide 28: E-commerce & COVID-19
De’ LONGHI ANALYST DAY 2021 E-COMMERCE & COVID-19 DIGITAL MEDIA FRUITION CONSUMERS ARE EXPOSED TO HIGHER NUMBER AND Retail Ecommerce Sales Penetration, by Country MORE FRAGMENTED DIGITAL MESSAGES 2021, % of total retail sales Asia-Pacific Central & Eastern Europe 91% COVID-19 Latin America AS 70% AC
Slide 29: E-retailer growth and workstreams
De’ LONGHI ANALYST DAY 2021 E-RETAILER GROWTH AND WORKSTREAMS DeLonghi PrimaDonna Soul ECAM 612.55.58 Kafeevolautomst, mit ilcsystem & Bean Adapt Technologie, 18 Rezepte per Knopfcruck, mit Farbdisplay 8 App-Steverungsiber[Eneray case) SECURE DEPLOYMENT OF OUR PRICE & COMMERCIAL IMPROVE E-SHOPPER EX
Slide 30: New e-Shop
De' LONGHI ANALYST DAY 2021 DIRECT BRAND E-COMMERCE RE-PLATFORMING AND EXPANSION KENWOOD BRAUN New e-Shop es PRICE & COMMERCIAL TOP LINE & TLCV & OMNI-CHANNEL 1ST PARTY DATA & POLICY PROFITABILTY APPROACH CUSTOMER INSIGHTS DéLonghiGroup | DeLonghi) KENWooD BRAUN nutribullet. -Ariere. 30
Slide 31: New e-commerce platform
De' LONGHI ANALYST DAY 2021 NEW E-COMMERCE PLATFORM KENWOOD BRAUN New e-Shop l CONSUMER JOURNEY INITIAL CONSIDERATION ACTIVE EVALUATION PURCHASE & SUPPORT LOYALTY & REFERRAL ENHANCHED BRAND & PRODUCT STORY TELLING NEW E-MERCHANDISING CAPABILITIES TO HELP CONSUMER IDENTIFY RELEVANT PRODUCTS NEW TECH
Slide 32: Single Customer View
Single Customer View 32
Slide 33: The consumer journey continues
De’ LONGHI ANALYST DAY 2021 THE CONSUMER JOURNEY CONTINUES ... INITIAL CONSIDERATION ACTIVE EVALUATION PURCHASE & SUPPORT a, ~yx.........._ N DéLonghiGroup | DeLonghi) KENWOOD BRAUN nutribullet. -Ariete. 33
Slide 34: Source: Internal company analysis
Source: Internal company analysis 34
Slide 35: Comprehensive brand portfolio
De' LONGHI ANALYST DAY 2021 COMPREHENSIVE BRAND PORTFOLIO r KENWOOD BRAun nutribullet. z fe) 4 a GLOBAL MARKET LEADER_IN THE MOST LOVED & LEADING PREMIUM BRAND IN LEADING PERSONAL BLENDER = COFFEE, COMFORT AND ADMIRED BRAND IN HIGH VOLUME “EVERYDAY IN ACCESSIBLE NUTRITION SELECTED KITCHEN CATEGORIES
Slide 36: New product development and communication
COMMUNICATION NEW PRODUCT DEV. • • • • • • • • • 36
Slide 37: Global SDA markets
(*) Global SDA markets, EUR values, ex-USA, India and China 37
Slide 38: New product development and communication
COMMUNICATION NEW PRODUCT DEV. • • • • • • • • • 38
Slide 39: Marketing strategy: maximizing long term brands' value
De’ LONGHI ANALYST DAY 2021 MARKETING STRATEGY: MAXIMIZING THE LONG TERM BRANDS’ VALUE OFF-LINE oN =~Sip ON-LINE PROMOTE THE ACQUISITION OF NEW ENRICH, IMPROVE AND INTEGRATE CROSS IDENTIFY & EXPLOIT THE CUSTOMERS’ CUSTOMERS, LEVERAGING THE CHANNEL THE CUSTOMER EXPERIENCE, WISHES IN ORDER TO HAVE A D
Slide 40: Communication projects
De' LONGHI ANALYST DAY 2021 COMMUNICATION PROJECTS = = KENWOOD DeLonghi CAN BRAUN IGQ__ BRAND IDENTITY BECOMES MORE 0 GLOBAL CAMPAIGN CELEBRATE CONTEMPORARY FULL 360 AMM ASENESS BRAND BRAUN’S 100TH ANNIVERSARY ———— Coffee KPP BaAun ‘Gem \OUNGE MOMENTS PARTNERSHIP PROGRAM INVOLVING BUILD AN HOLISTIC
Slide 41: Communication projects
De’ LONGHI ANALYST DAY 2021 COMMUNICATION PROJECTS SOCIAL MEDIA V CREATION OF CENTRAL GLOBAL CHANNELS ACADEMY Mv ENHANCEMENTS OF v_ IN-HOUSE GROUP LOCAL CHANNELS AND ACADEMY FOR PHYSICAL SOCIAL LISTENING AND DIGITAL EVENTS, B2B AND B2C Y TRAININGS, MASTER CLASSES, PR, LIVE DEMO, PARTNERS, AMBASSADOR
Slide 42: Increasing marketing spend
De' LONGHI ANALYST DAY 2021 INCREASING MARKETING SPEND 2019 2020 2021 TOTAL 245M€ 293M€E ~ +100 BPs ATL = 50% 60% ->60% COMMUNICATION) OF WHICH: DIGITAL 44% 49% ~ 50% DéLonghiGroup | DeLonghi) KENWoopD BRAUN nutribullet. -Ariere. 42
Slide 43: New product development and communication
COMMUNICATION NEW PRODUCT DEV. • • • • • • • • • 43
Slide 44: New product launches
• Primadonna Soul La Specialista Maestro Icona Metallic Collection • • Pinguino with Cool Surround Technology Tasciugo 2in1 Ariadry Pure • Cooking Chef XL Titanium Chef Patissier XL • Multipro Express CookEasy+ New • MultiQuick 9 INT • TextStyle 5 INT 44
Slide 45: Kenwood wins brand of the year
Japan Good Design Award Winner Kenwood wins brand of the year 45
Slide 46: Source: Internal company analysis
Source: Internal company analysis 46
Slide 47: Source: Internal company analysis
Source: Internal company analysis 47
Slide 48: New product development through a case: Primadonna Soul
NEW PRODUCT DEVELOPMENT THROUGH A CASE PRIMADONNA SOUL & “Wy, BEAN ADAPT TECHNOLOGY DéLonghi Group | KENwoop BRAUN nutribullet. 48
Slide 49: Specialty coffee offering is growing
De' LONGHI ANALYST DAY 2021 SPECIALTY COFFEE OFFERING IS GROWING 49 &
Slide 50: But one machine fits all beans
De' LONGHI ANALYST DAY 2021 BUT ONE MACHINE FITS ALL BEANS DéLonghiGroup | KENwoop BRAUN nutribullet. -Ariece.
Slide 51: Call to action for the NPD cross functional team
De’ LONGHI ANALYST DAY 2021 CALL TO ACTION FOR THE NPD CROSS FUNCTIONAL TEAM DéLonghiGroup —_| DeLonghi) KENWOOD BRAUN nutribullet. -Ariete. 51
Slide 52: Technologies
De' LONGHI ANALYST DAY 2021 TECHNOLOGIES PRODUCT PROCESS epi DéLonghiGroup | KENwoop BRAUN nutribullet. -Ariece. 82
Slide 53: Precision sensing and machine learning algorithm
De’ LONGHI ANALYST DAY 2021 PRECISION SENSING AND MACHINE LEARNING ALGORITHM KC ~ 9 = & © 4 BEAN ADAPT 4) BEAN ADAPT ee LOGY U7 TECHNOLOGY DéLonghiGroup | KENWoopD BRAUN nutribullet. 53
Slide 54: Coffee Link app + Bean Adapt technology
De' LONGHI ANALYST DAY 2021 COFFEE LINK APP + BEAN ADAPT TECHNOLOGY GET THE PERFECT COFFEE Ua. DéLonghiGroup | DeLonghi) KENWooD BRAUN nutribullet. -Ariere. 54
Slide 55: The steps for the most flavored espresso
De' LONGHI ANALYST DAY 2021 THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO Choose the enki beans you like the most. And do not forget to refill the bean container. DéLonghiGroup | Dabonghi) KENWOOD BRAUN nutribullet. -ariece.
Slide 56: The steps for the most flavored espresso
De' LONGHI ANALYST DAY 2021 THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO Connect your device with the machine. In few taps, the machine is ready to deliver your cup of coffee. DéLonghiGroup | Dabonghi) KENWOOD BRAUN nutribullet. -ariece.
Slide 57: The steps for the most flavored espresso
De’ LONGHI ANALYST DAY 2021 THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO STEP 3 ADAPT TECHNO The machine takes care of your fayorite beans. Grinding level, dosing and a ext DéLonghi Group KENWoop BRAUN nutribullet. -Ariere.
Slide 58: The steps for the most flavored espresso
De’ LONGHI ANALYST DAY 2021 THE 4 STEPS FOR THE MOST FLAVORED ESPRESSO STEP S29bHE PERFECT EXTRACTION A compact-and dense crema with a hazelnut colour. Your cup of coffee is now ready to be enjoyed! Step 2: Coffee Link App Step 3: Bean Adapt Technology DéLonghiGroup | DeLonghi) KENWooD BRAUN nutribu
Slide 59: The operations footprint
De’ LONGHI ANALYST DAY 2021 THE OPERATIONS FOOTPRINT 5 PLANTS {fF 8,000+ PEOPLE 33 WAREHOUSES fq 1.000+ SUPPLIERS DéLonghiGroup —_| DeLonghi) KENWOOD BRAUN nutribullet. -Ariete. 59
Slide 60: Operations drivers and enablers
De’ LONGHI ANALYST DAY 2021 OPERATIONS DRIVERS AND ENABLERS dh DéLonghi Group (Betonghi) KeNWoop BRAUN nutribullet -friere 60
Slide 61: Manufacturing excellence
De’ LONGHI ANALYST DAY 2021 MANUFACTURING EXCELLENCE «MADE BY DE’ LONGHI GROUP» CONSISTENT STANDARDS ACROSS ALL FACTORIES RIGOROUS PROCEDURES TO SELECT SUPPLIERS FULL TRACEABILITY SYSTEM IN PLACE
Slide 62: Premium quality
De’ LONGHI ANALYST DAY 2021 PREMIUM QUALITY 5 ae ms > SUPERIOR STANDARDS SPECIFIC FOR FOOD & BEVERAGES y ¥ 4 >» MATERIALS AND FINISHINGS OFFER THE BEST if ’ Yo AND DURABLE CONSUMER EXPERIENCE > ADVANCED AND AUTOMATED PROCESSES TO ENSURE PERFECT EXECUTION leer DéLonghiGroup | KENWoop BRAUN nutribulle
Slide 63: Supply resilience
De’ LONGHI ANALYST DAY 2021 SUPPLY RESILIENCE > DIVERSIFICATION AND FLEXIBILITY THROUGH BALANCING «MAKE AND BUY» >» WIDE PRODUCT RANGE LEVERAGING A LARGE SUPPLY BASE = » RESPONSIVENESS TO MARKET AND ZED E-TRANSITION ARE THE PRIORITIES DéLonghiGroup | KENWoopD BRAUN nutribullet. 63
Slide 64: Competitiveness drivers
De’ LONGHI ANALYST DAY 2021 COMPETITIVENESS DRIVERS > STRATEGIC CORE PRODUCTS MANUFACTURED ‘age IN HOUSE | > CO-SUPPLY STRATEGY: EXPLOITING THE BEST IN CLASS OUTSOURCED TECHNOLOGIES CONTINUOUS EXPLORATION AND BENCHMARK OF ALTERNATIVE SOLUTIONS ! F DéLonghiGroup | KENwoop BRAUN nutribullet. -Ariece.
Slide 65: Systemic competence
De’ LONGHI ANALYST DAY 2021 SISTEMIC COMPETENCE END-TO-END INTEGRATED PROCESS FROM IDEATION TO CONSUMER TALENT POOLING IN A PROPRIETARY ECOSYSTEM IS AN ENTRY KNOW-HOW BARRIER PROCESSES EVOLUTION SUPPORT ORIGINAL SOLUTIONS AND PRODUCT INNOVATIONS.
Slide 66: Sustainability in manufacturing
De' LONGHI ANALYST DAY 2021 SUSTAINABILITY IN MANUFACTURING PROJECT B SCRAP REDUCTION -30%, THROUGH DIGITALIZAZION AND REAL TIME PERFORMANCE PROJECT A MANAGEMENT ZERO WASTE OF GROUND COFFEE LL POWDER INFINALMACHINE TESTING > . —@> <& PROJECT C THROUGH ADVANCED LASER ss a a REDUCTION IN DEPENDANCE SE
Slide 67: Growth drivers: coffee
De’ LONGHI ANALYST DAY 2021 GROWTH DRIVERS: COFFEE COFFEE ACCELERATION * COFFEE MACHINES DEMAND SUPPORTED BY GLOBAL DIVERSIFIED SOURCING BASE ENHANCED INVESTMENT PLAN TO SUSTAIN THE GROWTH WAVE DéLonghiGroup | KENwoop BRAUN nutribullet. -Ariece. 67
Slide 68: Growth drivers: food preparation
De' LONGHI ANALYST DAY 2021 GROWTH DRIVERS: FOOD PREPARATION GROWTH MATCHED BY INCREASED | | CAPACITY READY TO PROVIDE BEST-IN-CLASS HOME EXPERIENCE IN KITCHEN & DONG GUAN (CHINA)
Slide 69: Ordinary and extraordinary capex
100 90 80 70 60 50 40 30 20 10 - FY 2018 FY 2019 FY 2020 Ordinary Capex Extraordinary Capex 69
Slide 70: Investment acceleration
De' LONGHI ANALYST DAY 2021 INVESTMENT ACCELERATION RENDERING OF THE EXPANSION OF THE PLANT IN DONG GUAN DéLonghiGroup | KENWoop BRAUN nutribullet. -Ariere. 70
Slide 71: Source: Internal company analysis
Source: Internal company analysis 71
Slide 72: Revenue FY2018-FY2023
3,500 3,000 2,500 2,000 1,500 2,351 1,000 2,078 2,101 500 - FY 2018 FY 2019 FY 2020 FY 2023 72
Slide 73: Revenue by category FY2020-FY2023
FY 2020 COFFEE Cooking & FoodPreparation Comfort & HomeCare FY 2023 73
Slide 74: 3YR MTP: Coffee
De' LONGHI ANALYST DAY 2021 3YR MTP: COFFEE CAGR DOUBLE DIGIT, FY2020 FY2023 DéLonghi Group = — = INCREASING PENETRATION te= vy STRENGTHENING THE e@eoec cee LEADERSHIP KENWOOD GEOGRAPHICAL EXPANSION CONSOLIDATING IN THE DRIP COFFEE MARKET STRONG RELATIONSHIP WITH NESPRESSO / NESTLE’ BRAUN nutribulle
Slide 75: 3YR MTP: Cooking & food preparation
De’ LONGHI ANALYST DAY 2021 3YR MTP: COOKING & FOOD PREPARATION _Z7 CAGR ROUBLE DIG EXPLOITING THE OPPORTUNITY,OF:GAPITALam BRANDS MARKET SHARE RECOVERY BETTER GO-TO-MARKET IN GREATER CHINA RATIONALIZATION OF BRAND PORTFOLIO FY2020 FY2023 DéLonghi Group
Slide 76: 3YR MTP: Comfort & home care
De’ LONGHI ANALYST DAY 2021 3YR MTP: COMFORT & HOME CARE CAGR LOW SINGLE DIGIT T ID EXPECTED IN LINE WITH PAST — RFORMANCE FY2020 FY2023 4 ” HIGH SEASONALITY EXPLOITING MARKET OPPORTUNITIES EXPLORING NEW FUNCTIONALITIES RELATED TO NEED FOR HEALTHIER AND-SANITIZED DOMESTIC ENVIRONMENT DéLonghi Group
Slide 77: Revenue by region FY2020-FY2023
3.283 2.689 2.351 FY 2020 EUROPE APA MEIA FY 2023 Europe APA MEIA 77
Slide 78: 3YR MTP: North America
De’ LONGHI ANALYST DAY 2021 3YR MTP: NORTH AMERICA > WIDENING THE FULLY-AUTO AND PUMP PRODUCT RANGE TO TACKLE THE EXPANDING COFFEE MARKET > STRENGTHENING THE PROGRESSION OF ESPRESSO MAKERS, ENHANCING THE BRANDING STRATEGY > DEFINING A MULTI-YEAR A&P BUDGET AND STRATEGY TO MAXIMIZE RETURNS DéLonghiGr
Slide 79: 3YR MTP: Asia & Greater China
De’ LONGHI ANALYST DAY 2021 3YR MTP: ASIA & GREATER CHINA > MOVING TOWARDS A DIGITAL DATA-DRIVEN GO-TO- MARKET > ACCELERATION IN ENHANCING THE CONDITIONS FOR LEADING-HEDGE DIGITAL PLATFORM > STRENGTHENING THE REGIONAL NPD TO SEIZE THE OPPORTUNITIES IN THE ASIAN MARKETS > EXPANDING THE COMMUNICATION
Slide 80: 3YR MTP: Europe
De’ LONGHI ANALYST DAY 2021 3YR MTP: EUROPE > STRONGER COMMERCIAL ORGANIZATION AND PRIORITIZATION OF A&P TO SUPPORT CORE SUB-SEGMENTS IN KEY MARKETS > COFFEE IS STILL FUELING EXPANSION SrA C te 7m >» LOCAL SUPPLY CHAIN ENSURING HIGH LEVEL OF SUPPORT > INVESTING IN COMMUNICATION AND IN NPD TO DELIVER
Slide 81: 3YR MTP: Rest of the world
De’ LONGHI ANALYST DAY 2021 3YR MTP: REST OF THE WORLD > IMPROVING THE LEADERSHIP IN OUR LEADING MARKETS OF THE AREA IN ESPRESSO SECTOR AND CORE SUB- SEGMENTS > MEIA: FOCUS ON REGIONAL CORE PRODUCTS OF FOOD PREPARATION AND COFFEE, SUSTAINED BY A RENEWED COMMERCIAL ORGANIZATION DéLonghiGroup —_| DeLo
Slide 82: Profitability margin FY18-FY23
20,0% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 15,6% 15,1% 14,1% 6,0% 4,0% 2,0% 0,0% FY18 FY19 FY20 FY23 Reported figures 82
Slide 83: Cash flow FY2018-FY2023
600 400 200 0 -200 -400 -600 FY 2018 FY 2019 FY 2020 FY 2023 83
Slide 84: Source: Internal company analysis
Source: Internal company analysis 84
Slide 85: FCF, dividends and M&A
500 1.300 400 364 1.100 300 200 249 249 900 127 105 213 100 78 700 0 500 -100 300 -200 251 278 100 228 232 -300 -400 -100 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 -500 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 -300 FCF (pre dividend and M&A) dividends M&A -500 85
Slide 86: Cash generation for the future
De’ LONGHI ANALYST DAY 2021 CASH GENERATION FOR THE FUTURE TO EXPAND THE PRODUCTION CAPACITY AND PRESERVE FLEXIBILITY OF GO-TO-MARKET TO ACCELERATE THE EXPANSION AND OPTIMIZE THE CAPITAL ALLOCATION i RULED BY A NEW DIVIDEND POLICY DéLonghi Group KENWoop BRAUN nutribullet. -Ariere. 86
Slide 87: The new dividend policy
De’ LONGHI ANALYST DAY 2021 THE NEW DIVIDEND POLICY NEW DIVIDEND POLICY Va MAIN GOALS : vy TO PROVIDE SHAREHOLDERS WITH A RELIABLE ROADMAP; \v TO LEAVE ROOM FOR M&A AND EXTRAORDINARY OPERATIONS _) Va > MINIMUM PAY OUT RATIO AT 40% OF NET EARNINGS; > THRESHOLD TO BE MODIFIED IN CASE OF SIGNIFICANT L
Slide 88: The Group M&A strategic guidelines
De’ LONGHI ANALYST DAY 2021 THE GROUP M&A STRATEGIC GUIDELINES > HIGHER CONCENTRATION » > HIGHER DIVERSIFICATION » DéLonghiGroup | (Gebonghi KENWoop BRAUN nutribullet. -Ariere. 88
Slide 89: Current trends in M&A
De’ LONGHI ANALYST DAY 2021 CURRENT TRENDS IN M&A DéLonghi Group IMPACT ON MULTIPLES DUE TO COVID SELECTIVE APPROACH / FIT WITH OUR STRATEGY / L/T VALUE CREATION INCREASING COMPETITION DUE TO THE LIQUIDITY FLOOD OPPORTUNITIES OFFERED BY ADVERSE ECONOMIC CYCLE FOCUS ON BOLT ON OPPORTUNITIES DeLonghi)
Slide 90: The Capital Brands and Eversys acquisitions
De' LONGHI ANALYST DAY 2021 THE CAPITAL BRANDS AND EVERSYS ACQUISITIONS Capital Brands. MTP 2021-2023 STRATEGY + EXECUTION = SUCCESS CAPITAL BRANDS AND EVERSYS DEALS ARE = novation FULLY CONSISTENT Pena ee Protect and Make it even more WITH THE PILLARS OF mass andinctease inthecalegory,gategenyenuia
Slide 91: The Capital Brands acquisition
De' LONGHI ANALYST DAY 2021 THE CAPITAL BRANDS ACQUISITION THE CAPITAL BRANDS ACQUISITION MEANS... > ...,BECOMING A LEADING PLAYER IN THE USA > ...ADDING PERSONAL BLENDERS TO OUR PORTFOLIO th > ..USA & CANADA #1 MARKET WITH > 500 M$ SALES — > ...WALUE ACCRETION FROM THE BEGINNING > ... MORE FOCUS ON
Slide 92: Strategy + execution = success
STRATEGY + EXECUTION = SUCCESS Food Innovation US & Asia Coffee Protect and Make it even more Achieve critical Exploit full potential develop core central to the future mass and increase in the category, category, crucial success of the relevance in further cementing for the Group's Group, stepping
Slide 93: Source: Internal company analysis
Source: Internal company analysis 93
Slide 94: Disclaimer
Disclaimer 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 expectation
Slide 95: Source: Internal company analysis
Source: Internal company analysis 95