Ariston N : 2022 COMPANY REPORT

2022 Company Report

Our Group

-

Sustainability Report

-

Methodology

2022 Company Report

Our Group ― Sustainability Report ― Methodology

Find out more atwww.aristongroup.com

2022 COMPANY REPORT

1

Index

Letter to stakeholders	4
How to read the document	6

Our group	8
Our vision	10
Our mission	12
A global company with strong local roots	14
Who we are and what we do	16
The group by numbers	18
Global vision, local action	20
Our history	22
2022 highlights	24
Brands and products	26
Thermal comfort
Ariston	28
Elco	30
Chaffoteaux - Racold	32
Calorex - NTI	34
HTP - ATAG	36
Components	38
Burners	39

Sustainability Report	40
		The European Taxonomy	42
		Road to 100	48
		The path towards Road to 100	50
		Road to 100: How did we get here?	52
		Road to 100: Main 2030 objectives	54
		Solutions	56
		Key challenges	58
		Sustainable energy solutions	59
		Smart homes for sustainable living	66
		Operations	70
		Key challenges	72
		Resources productivity and circularity	73
		Responsible supply chain	82
		People & Communities	86
		Key challenges	88
		Excellent employee experience & engagement	89
		Education for the future	96
		Customers	100
		Key challenges	102
		Beyond customer proximity	103
		Trustworthy quality excellence	109
		Governance	112
		Key challenges	114
		Long-sighted sustainable governance	115
Methodology	Note on methodology	126
		Technical appendix	127
		GRI content index	128
		Notes	174

2

2022 COMPANY REPORT

3

LETTER TO STAKEHOLDERS

HOW TO READ THE DOCUMENT

OUR GROUP

SUSTAINABILITY REPORT

NOTE ON METHODOLOGY

TECHNICAL APPENDIX

GRI CONTENT INDEX

NOTES

Projecting bridges to our future

Paolo Merloni Executive chairman

As we acknowledge the past achievements, we are already setting new and bolder objectives for ourselves, to project bridges to our future. Ariston Group's sustainable growth remains our absolute priority and we will deploy all the resources needed to generate value for our stakeholders in the long term.

Dear Stakeholders,

Looking back at 2022, which has come to an end, I want to take the opportunity to retrace the moments that shaped such an intense year of events

and achievements.

Our solutions for thermal comfort - the way our customers welcome us to their homes - continued to be one of the main drivers of Ariston Group's success. As per our vision, we remained committed to championing sustainable comfort and invested heavily in technological innovation, to further enrich our renewable and high-efficiency portfolio. Over the years we have been working hard to steadily increase our production capacity for heat pumps and in 2022 we renewed our electric heat pump platform across all our core European markets, releasing improved efficiency and low-noise performance products that leverage low Global Warming Potential refrigerants. Furthermore, while electrification is confirmed as the main pillar of the European building decarbonisation strategy and remains at the core of our efforts, we have been supporting the energy transition also through the development of hydrogen, high-efficiency and hybrid solutions; and we have invested in digitalization and the IoT, upgrading our products with advanced connectivity features, to reduce consumption while further enhancing the user experience.

The decision to join forces with CENTROTEC Climate Systems - the biggest acquisition announced in Ariston Group's history and which marks

a fundamental milestone on this year's path - is fully consistent with our pledge to thrive in this area:

in particular, Wolf brought to the group its role as

a pioneer in natural refrigerants, high-efficiency, ultra- low noise heat pumps, while Brink brought domestic ventilation, crucial for nearly Zero Emission Buildings, and the air-handling solutions allow the Group to expand its portfolio into critical climate comfort technologies. Ariston Group's international footprint

- another key element in our investment statement - has also benefited from this deal, with our European presence further consolidating and Germany becoming the lead market from 2023 onwards.

Another year of sound financial performance represents an indisputable indicator that our vision Sustainable Comfort for Everyone is robust. In 2022 Ariston Group reported revenues for 2.4 billion Euro (+ 19.7%) driven by the increasing demand for renewable solutions: during a year disrupted by a series of events that spanned from the regrettable outbreak of the Ukrainian conflict to energy and raw material scarcity and high inflationary trends, we were able to further grow our turnover - once again, an all-time high! And considering pro-forma the acquisition closed on

2 January 2023, Ariston Group starts the new year as a 3.1-billion-Euro net revenue group.

Over our 93-year history we have achieved ambitious targets. As major challenges loom on the horizon,

we prepare to turn them into opportunities, continuing to raise the bar of our aspirations and performance.

In particular, we will focus on continuing to sustain our financial performance by leveraging our solutions and our services, we will invest further in the consolidation of our global scale and we will work to increasingly mitigate and enhance our environmental and social impact - a purpose that dates back to the Ariston Group founder's industrial culture and that we will never abandon. 2023 will be critical to our ESG strategy: the plan we launched back in 2017 ended last year and - as Ariston Group approaches its 100th anniversary - we are releasing our strategic plan to 2030 "Road to 100", renewing our commitment through the set of environmental, social and governance targets that will shape the agenda of our future development.

I will never tire of saying that these remarkable results - which are fully consistent with our growth ambitions

• would not be possible without the contribution of our global community of people, whose extraordinary competencies, dedication and passion are the ultimate essence of Ariston Group's success, nor without the solid organisational structure that we have adopted and that sustains our business focus.

To all our people, the Ariston Group people, as well as to all our customers and partners, my heartfelt thanks.

4

5

LETTER TO STAKEHOLDERS

HOW TO READ THE DOCUMENT

OUR GROUP

SUSTAINABILITY REPORT

NOTE ON METHODOLOGY

TECHNICAL APPENDIX

GRI CONTENT INDEX

NOTES

How to read the document

Ariston Group's Sustainability Report sets out key commitments and results achieved for the reporting period January-December 2022. More specifically, the document purports to provide a comprehensive description of qualitative and quantitative information which outline the Group's effort in the sustainability field.

In order to facilitate the reading of this report by the Group's stakeholders, the document is structured around three macro-sections which are illustrated below.

Our Group	Our Group	Presents the Group focusing on its core business, historical
							milestones, key numbers and brands composing its portfolio
Sustainability	European Taxonomy	Sheds light on Ariston Group's contribution to the European
Report		Taxonomy's first two objectives of mitigation and adaptation to
							climate change, in terms of Taxonomy-aligned economic activities
						Road to 100	Describes the path towards Road to 100, the Group's 2030 ESG
							Plan. 2022 marks the end of the first phase of the sustainability
							journey (Road to 2022) and the renewal of the Group's
							sustainability strategy
							Provides a snapshot of the Road to 100 main 2030 objectives
							and ambitions for each material topic of the Group
						Road to 100 engagement areas	Material topics
						1. Solutions	• Sustainable energy solutions
						What we produce and sell	• Smart homes for sustainable living
						2. Operations	• Resources productivity and circularity
						How we produce and sell	• Responsible supply chain
						3. People & Communities	• Excellent employee experience & engagement
						The impact on communities
						• Education for the future
						we operate in
						4. Customers	• Beyond customer proximity
						The impact on our
						• Trustworthy quality excellence
						business stakeholder
						5. Governance	• Long-sighted
						Safeguard the way we do business	sustainable governance
Methodology	Note on methodology	Explains the methodology used for the creation of the document,
							along with reporting scope and standard followed
						Technical appendix	Provides a thorough overview on all reported standards and
							disclosures both from a quantitative and qualitative perspective
						GRI content index	Increases the usability of reported information and helps stake-
							holders navigate disclosures and see the information at a glance

6

2022 COMPANY REPORT

7