2023 H1 results

7th September 2023

Executive Summary

H1-23 in line with H1-22 despite tough comparison Different Sales Mix, Same Financial Results

Economics

Financials

Strategy

  • In H1-23, sales of products grew by 2.7% (1.7% prices) No material impact from FX
  • EBITDA in line with H1-22 despite tough comparison (EBITDA +62% in H1-22)
  • Order book at € 188 M in line with December 2022
  • Resilient business model amid volatility in end markets
  • Since 2019: sales CAGR = +14.0% - EBITDA CAGR = +14.3%
  • Leverage at 2.0x EBITDA adj LTM, despite seasonality in NWC
  • Increase in net financial charges, due to increase of cash cost and reversal of strong positive effect on P&L 2022, resulting from interest rate derivatives
  • LTM net cash generation adjusted equal to €44.3 M (7.1% of sales, +44.5%)
  • Integration of Refrion (acquired in March 2022) well advanced
  • ACC project in progress: first 3 production lines installed and creation of a logistic center for heat pump market

• Growth Capex in Poland, China and USA

2

H1-23 Financial Highlights

Tough comparison with H1-22

€ millions

H1 2022

H1 2023

Q2 2022

Q2 2023

2022 FY

LTM

Sales

318.4

320.3

169.5

168.9

618.6

620.5

Growth %

39.9%

0.6%

40.4%

-0.4%

25.7%

6.5%

EBITDA reported

42.1

41.8

23.0

22.7

75.1

74.8

EBITDA %

13.2%

13.1%

13.5%

13.4%

12.1%

12.1%

EBITDA adjusted

42.8

42.5

23.0

23.3

78.8

78.5

EBITDA %

13.4%

13.3%

13.5%

13.8%

12.7%

12.7%

Net income reported

33.2

19.1

11.8

12.3

49.1

34.9

Net income adjusted

23.2

22.0

11.9

13.0

38.6

37.4

% of sales

7.3%

6.9%

7.0%

7.7%

6.2%

6.0%

Net financial debt

155.4

160.2

155.4

160.2

142.3

160.2

Net worth

206.8

218.5

206.8

218.5

211.5

218.5

  • In H1-23, total sales grew by 0.6% YoY mainly due tough comparison with H1-22 (+39.9% in H1-22)
  • In Q2-23 adjusted EBITDA margin at 13.8%
  • Net income in H1-23 at € 19.1 M. Reduction vs H1-22 mainly due to capital gain on Tecnair sale in Q1-22 and increase of net financial charges (including derivatives)
  • Net financial position impacted by seasonality in NWC (mainly receivable) despite small decrease of safety stock.
  • Leverage (NFD/EBITDA) at 2.0x despite seasonality of NWC - 1,77x excluding excess on NWC

• In H1-23 net Cash Generation from operations equal to € 29.5 M (9.2% of sales)

3

H1 23 - Revenues Breakdown

Amid volatile markets, benefits from diversification

Products

  • 000

H1 22

%

H1 23

%

  • %

Heat Exchangers

Air Cooled Equipment

Glass Doors

Total sales of products

Other revenues

Total sales

173.5

54.5%

169.9

53.1%

-2.1%

126.6

39.8%

141.6

44.2%

11.8%

11.1

3.5%

8.0

2.5%

-27.5%

311.2

97.8%

319.6

99.8%

2.7%

7.2

2.2%

0.7

0.2%

-89.7%

318.4

100.0%

320.3

100.0%

0.6%

Applications

€ 000

Refrigeration

Air Conditioning

Special Applications

Industrial cooling

Total sales of products

Other revenues

Total sales

H1 22

%

165.4

51.9%

66.9

21.0%

45.9

14.5%

33.0

10.4%

311.2

97.8%

7.2

2.2%

318.4

100.0%

H1 23

%

∆ %

151.9

47.4%

-8.2%

97.8

30.6%

46.3%

36.8

11.5%

-19.9%

33.1

10.3%

0.2%

319.6

99.8%

2.7%

0.7 0.2% -89.7%

320.3

100.0%

0.6%

  • Strong demand for heat pumps (A/C) +143.3%, mobile application +20.3% and air conditioning
  • Since Q3-22, weak market for refrigerated display cabinet (-27%), tumble dryers (-67%) and HORECA
  • Industrial cooling: sales in line with H1-22, but strong increase in order book
  • By geography: strong increase in Germany, France and Italy, weak market in Czech Republic and

Poland.

4

HEAT PUMPS - focus

The market(1)

LUVE strategy

  • Heat pump sales are breaking records, with more than 3 million heat pumps sold in 2022 +38.9%
  • Heat exchangers for HP are part of LUVE's core business
  • The 19.79 million heat pumps now installed in the EU are providing heating and cooling to around 16% of Europe's residential and commercial buildings
  • Heat pump stock avoids 52.52 Mt of CO2
    - roughly equivalent to the annual emissions of Greece
  • The IEA (2) estimates HP globally have the potential to reduce CO2 emissions by at least 500 million tons in 2030 - equal to the annual CO2 emissions of all cars in Europe today
  • HP market is expected to growth at 18% CAGR to 2030 (3)
  • Expected to become the first application market by 2024 (+143% in H1 23)
  • To maintain an adequate diversification of applications, LUVE intends to keep the share of HP below 15%/18% of its turnover
  • Heat Exchanger represents the key components in HP's performance, but its cost has a limited incidence
  • Objective: to increase market share selectively through long-term partnerships with qualified customers

(1) Source: EHPA, (2) International Energy Agency, (3) LUVE estimates

5

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LU-VE S.p.A. published this content on 07 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2023 16:14:04 UTC.