2023 Q1 results

12th May 2023

Executive Summary

Q1-23 in line with Q1-22 despite tough comparison NWC impacted by seasonality

Economics

Financials

Strategy

  • In Q1-23, sales of products grew by 3.9% (2.0% volumes and 1.9% prices) No material impact from FX
  • EBITDA in line with Q1-22 despite tough comparison (EBITDA +52% in Q1-22)
  • EBITDA growth QOQ +23.1% (Q1-23 vs Q4-22)
  • Order book at € 219 M +15.8% vs. December 2022
  • Resilient business model amid volatility in end markets
  • Leverage at 2.1x EBITDA adj LTM, despite seasonality in NWC
  • Increase in net financial charges, mainly due to reversal of strong positive effect on P&L 2022 resulting from interest rate derivatives
  • LTM net cash generation adjusted equal to € 54.1 M
  • Integration of Refrion (acquired in March 2022) in progress
  • ACC project in progress: first 3 production lines installed and creation of a logistic center for heat pump market

• Growth Capex in Poland and USA

2

Q1-23 Financial Highlights

Tough comparison with Q1 -22

€ millions

Q1 2022

Q1 2023

2021 FY

2022 FY

LTM

Sales

148.8

151.4

492.0

618.6

621.2

Growth %

39.3%

1.7%

22.6%

25.7%

EBITDA reported

19.2

19.2

60.8

75.1

75.1

EBITDA %

12.9%

12.7%

12.4%

12.1%

12.1%

EBITDA adjusted

19.9

19.2

60.8

78.8

78.1

EBITDA %

13.3%

12.7%

12.4%

12.7%

12.6%

Net income reported

21.4

6.8

24.8

49.1

34.4

Net income adjusted

11.3

8.8

27.8

38.6

36.1

Net financial debt

177.3

161.4

121.9

142.3

161.4

NFD / EBITDA adj LTM

2.6x

2.1x

2.0x

1.8x

2.1x

Net worth

187.2

215.8

172.1

211.5

215.8

  • In Q1-23, sales grew by 1.7% YoY mainly due tough comparison with Q1-22
  • In Q1-23 EBITDA margin in line with Q1-22
  • Net income in Q1-23 reduced to € 6.8 M mainly due to capital gain on Tecnair sale in Q1-22, increase of net financial charges (including derivatives)
  • Net financial position impacted by seasonality in NWC (mainly receivable) despite nearly flat safety stock.

• In Q1 net Cash Generation from operations equal to € 15.1 M (10% of sales)

3

Q1 23 - Revenues Breakdown

New Market Opportunities and Benefit from Diversification

Products

  • 000

Q1 22

%

Q1 23

%

  • %

Heat Exchangers

Air Cooled Equipment

Glass Doors

Total sales of products

Other revenues

Total sales

Applications

€ 000

83.2

55.9%

85.9

56.7%

3.3%

56.3

37.8%

61.1

40.4%

8.6%

5.5

3.7%

3.6

2.4%

-35.3%

145.0

97.4%

150.6

99.5%

3.9%

3.8

2.6%

0.8

0.5%

-78.8%

148.8

100.0%

151.4

100.0%

1.7%

Q1 22

%

Q1 23

%

∆ %

Refrigeration

81.5

54.7%

73.0

48.2%

-10.3%

Air Conditioning

27.3

18.4%

47.8

31.6%

74.8%

Special Applications

21.6

14.5%

17.6

11.6%

-18.5%

Industrial cooling

14.6

9.7%

12.2

8.0%

-16.5%

Total sales of products

145.0

97.4%

150.6

99.5%

3.9%

Other revenues

3.8

2.6%

0.8

0.5%

-78.8%

Total sales

148.8

100.0%

151.4

100.0%

1.7%

  • Strong demand for heat pumps (A/C), datacenter and air conditioning
  • As in Q3-22, weak market for refrigerated display cabinet (-31%), tumble dryers and HORECA
  • Industrial cooling: reduction in sales -16.5%, but strong increase in order book+74.8%
  • By geography: strong increase in Germany and France, weak market in Poland and Czech Republic, +

13% in Italy

4

EBITDA Bridge Analysis

Q1-23 vs Q1-22

  • EBITDA in line with Q1-22 despite tough comparison with Q1-22 (EBITDA growth in Q1- 22 = +51.7%) and volatility in end markets
  • One-offP&L impact from safety stock in 2022 (not included in NRI)
  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 31/3/2023

5

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LU-VE S.p.A. published this content on 12 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2023 12:06:04 UTC.