The Group at a glance
Investor Relations March 2011
the 2009 edition of the has voted
as the 9th BEST LISTED COMPANY IN ITALY

- www.extelsurveys.com -

March 2011

Prima Donna S

wins the Red Dot product design award 2011

the Group at a glance

Table of contents
The Group profile Strategic developments

The corporate mission

To design, engineer, manifacture and market
high end products and unique solutions

comfort and wellness

home and in ufficio a casa e business

The business segments

in mid 2007 a reorganization plan was launched in order to create two industrial poles for Household and Professional businesses in line with the recent business development and management strategies major opportunity to focus on core business and increase value generation

De Longhi S.p.A.

De Longhi Household

De Longhi Professional

DeLonghi Appliances

Kenwood Group

Climaveneta Group

RC Group

DL Radiators Group
Sales 2010: 1,626 million

Household 79%

Professional 21%

The Household division

It comprises all product categories which are marketed through consumer channels (specialty chains, wholesalers, department stores, OEM, catalogue sales).
heating and air conditioning cooking and food preparation cleaning and ironing
el. heating 10,9% mob. a/c treatm. 7,3% ironing & cleaning 8,3% other 2,2% coffe makers 32,8%
A truly international presence, where domestic market accounts for less than 15%
Other East. Eu. 2,4% ExURSS 7,4% Rest of Europe 25,4%
cooking (ex. coffee) 38,5%
Japan 3,6% Germany 11,0% N. America 7,4%
More than 70 % of the divisions sales are coming from kitchen products and coffee makers.
UK 8,6% Italy 13,2% R.o.W. 21,0%
RUSSIA ITALY CHINA (Guangdong):

3 factories,

A diversified international industrial platform serving a world-wide distribution network.
The Professional division
It comprises large thermo-cooling machines (Climaveneta and RC ), water-filled radiators (DL Radiators), all products distributed through professional channels (installers, plumbing merchants, refrigeration technicians).
industrial air conditioning wall mounted radiators

air cond. 70,6%

A business focused on Europe but with an increasing focus on China and East Asia

Other East. Eu. 5,0%

heating 29,4%

Germany 7,8% UK 10,0%

ExURSS 1,1%

Rest of Europe 37,5%

More than 2/3 of the divisions sales are originated by the more dynamic and profitable air-conditioning business.

Italy 25,7% R.o.W. 13,0%

CHINA (Shanghai): ITALY:

6 factories 1 factory,

A prevalent Italian industrial platform serving the European markets, but with a small promising presence in the Chinese market of large chillers.

Strategic developments

Ebitda erosion and recovery
Ebitda after non recurring items
14,0%13,5% 12,0% 10,0% 8,0%
13,7% 10,9% 8,9% 8,3% 9,2% 9,8% 11,9% 10,6% 9,3%

o eh us

e of Pr
7,9% 6,0% 4,0% 2,0% 0,0% 2010

before China:

> weak Euro > stable margins > competition among consolidated players > reliable Italian manifacturing platform

China enters the market:

after China:
> prices competition > margins compression > Euro revaluation > Far East aggression

Targets:

> preserving market shares > delocalization and industrial cost restructuring
> raw materials concerns > competitive industrial base > The brand-era > emerging markets are opportunities
> growth and product differentiation
> prices and margins growth > increasing market shares
Leadership presence in growing segments New products development Marketing alliances Enlarging distribution network Acquisitions on core business Sustaining investment in new technologies and advertisement to support new products launches

The new drivers

Today The 80s -90s
other 3% coffee machines 6% professional a /cond. & heating 19%

kitchen ex coffee 37%

portable a/c & heating 23%
professional a /cond. & heating 21%
ironing & cleaning 12%
other 2% coffee machines 26%
From 2001 to 2010: the cooking segment (coffee + food processors) has risen from 43% to 56%; weather-related portable products have declined from 23% to 14%.
able a/c & heating 14%
ironing & cleaning 7%

kitchen ex coffee 30%

The current trend is the
e offe C & od Fo e n h kitc fort Com

2010 onward

natural development

expansion strategy

over the decades

the 90s-2000 the 80s

y tal I pe uro E
. & mkt a g hin rgin C e em
The new drivers: espresso coffee makers

APA Mid. East 0,4% 8,4%

1600 1400
120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00% W.Eu. E.Eu. Latam EUR million APA growth % Mid. East

Latam 4,9% E.Eu. 7,0%

W.Eu. 79,2%
the worlds market of coffee makers is worth 2.3 Bn ; 80% of it is represented by West Europe countries;
the level of penetration ouside Europe is still very low, but the growth rates are impressive.
541 Filter coffee Espresso coffee 559
the coffee makers market in Europe (10 major countries) has grown at an average rate of 9 % in the last 6 years; espresso machines are leading the growth, at an average rate of 11% per year. 21

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 others portioned closed full auto
Full automatic and capsule machines cover 87 % of the value of espresso makers business in Europe, growing respectively at 9 % and 27 % on average per year in the last 6 years. 22
FULL AUTOMATIC COFFEE MAKERS

KRAFT by Bosch

0 PURE COFFEE MULTI BEVERAGE

by KRUPS

New product development Cooking Chef by Kenwood
new Primadonna espresso maker

ironing systems

Pinguino

Focus on segments

De Longhi is more focused on core segments than competitors (espresso + food prep. are 71% vs. main EU competitors never exceeding 30% of total small domestic appliances segment); 50% of De Longhis s.d.a. products are positioned in the highest price quartile (vs. main EU competitors never exceeding 25% for said quartile).

100% 90% 80%

quartile 4: P > 170

60% 50% 40% 30% 20% 10%

11,1 19,4 19,7
quartile 3: 85 < P < 179 quartile 2: 40 < P < 85 quartile 1: P < 40

0% De' Longhi Group

Enlarging the distribution network

Canada U.S.A.

U.K., Poland, France, Germany, Spain, Portugal
Holland, Ukraina Czech Rep., Croatia, Suisse, Austria, ITALY Greece, Turkey Dubai

Russia

Japan China and HK
Malaysia and Singapore Brazil South Africa Australia and New Zealand
Expansion in emerging markets the expansion strategy brings an increased share of sales in emerging markets; currently 31% of the sales of Household division.

developed markets 69%

Russia & East. Eu. 32%

Africa & M.E. 31%

emerging markets 31%

others 3%

other Far East 5% China & HK 7% Australia & NZ 22%

The R&D investments

37,7 33,6 30,9 29,4 28,6 31,9

BDG 2011

Exclusive design
In the years DeLonghi has been recognised as one of the most talented companies for Design. Here following is a small selection of the prizes that were rewarded to DeLonghis Design Department in the recent three years.
Since 2006 Pinguino DeLonghi PAC 50 is displayed as part of the Permanent Collection of Italian Design, at the Triennale of Milan. IF design award 2007, Household section Esclusivo Line
Plus X Award 2007" Elektrobrse Ironing System VVX 2200
Red Dot award 2007 Product design sect., Household - Esclusivo Line
Red Dot Awards 2008, Vacuum cleaner Xlence
Plus X Awards 2007, Esam 5500 Plus X Awards 2009, Most Innovative Brand

The net debt reduction path
derecognition of securitization program; sale of white goods business (Elba)
acquisiton of RC Group sale of R.E. assets

419,2 416,2

500 396,6 395,7
200 117,1 124,9 112,4 70,0 june 10 sept 10 dec 10 4,7 dec 06 dec 07 dec 08 june 06 june 07 june 08 june 09 dec mar 06 mar 07 mar 08 mar 09 sept 06
strong action on stock reduction and supply chain restructuring
Group consolidated Net Debt - million

sept 07

sept 08

sept 09

mar 10
The competitive achievements
WORLD WORLD WORLD W.EUROPE W.EUROPE W.EUROPE

#1 #1 #1 #1 #2 #3

PORTABLE HEATERS PORTABLE AIR CONDITIONERS ESPRESSO COFFEE MAKERS FOOD PROCESSORS COOKING PRODUCTS IRONING SYSTEMS

thank you

Contacts:

Fabrizio Micheli

Finance Director & IRM T: +413235 investor.relations@delonghi.it

Press release IFA 2008

Comfortable and effortless ironing without creases DeLonghi Expression
Steam iron and care stations by DeLonghi offer excellent ironing performance and are easy to use Ironing with threefold anti-aging effect for laundry, user and appliance
(Seligenstadt) The response from both men and women is the same: ironing is one of the least popular household chores and it comes as little consolation that ironing supposedly burns more calories than other household work. However, DeLonghi steam iron stations are designed to make ironing a more pleasant experience thanks to the continuous supply of steam that makes the work easier as well as reducing the amount of time spent at the ironing board. The new Expression steam iron generation by DeLonghi not only transforms reluctant ironers into passionate ironing professionals but also reliably and gently cares for the laundry thanks to the ingenious 3D steam system. 3D stands for quality, quantity and reliability of the steam performance of the DeLonghi iron generators. Around 150 g of steam per minute are powerfully ejected through the steam ducts of the iron sole at a pressure of 5 bar. The steam penetrates so deeply into all fabrics that even the most stubborn creases in particularly thick or multilayered textiles such as jeans are removed. In addition, the patented DeLonghi double-walled stainless steel and aluminium boiler reduces the heat-up time and maintains the pressure at an optimal level of 5 bar. The DeLonghi steam is particularly dry which is gentle to fibres and helps to retain their original structure for longer. Thanks to vertical steam emission, hanging clothing can also be conveniently refreshed.
Essential characteristics comfortable and convenient use Innovative features and the high level of comfort and convenience offered by the premium model VVX 2200 of the Expression range have already helped DeLonghi to win the Plus X Award. The steam iron station is equipped with a well-arranged, easily readable digital display that offers eight pre-programmed iron settings for specific textiles such as jeans through to delicate silk materials. This enables even ironing novices to automatically set the correct temperature. In addition, personal settings can also be manually entered and set. Say bye-bye to descaling! The new, innovative anti-scaling system absorbs 99.7 % of all scaling substances. This very considerable reduction in calcification leads to a significantly longer service life of the appliances, compared with other products. For this reason, the new generation DeLonghi steam iron stations can be simply filled with tap water. A special anti-drip mechanism ensures that no unsightly water marks appear on the ironed clothes. Safety first! The phone rings, the water on the cooker is boiling over or you leave the house straight after ironing. At some time in their lives, almost everyone has asked themselves the question: Is the iron really switched off? so the DeLonghi product developers have also addressed this aspect: the Expression range appliances take over the task of switching off thanks to the individually programmable Auto off function, turning off the iron after a predetermined time, or fully automatically using the Safe off function for the entire system after 60 minutes. Additional assistant the appropriate ironing board The right accessories are also important: DeLonghi offers two heatable ironing boards whose trays are specially tailored to the dimensions of the station. The ADS 3600 model is equipped with a suction function and blower. The resulting air cushion makes ironing easier and avoids seam impressions or creases. The lower-priced ADS 2600 model includes only the suction function. 2
Three different models of the DeLonghi steam iron range Expression are currently available from electrical retailers and from the electrical section of department stores. The premium model, the VVX 2200 steam iron station, with 150 g of steam emission per minute and featuring a digital display, an anti-scaling and anti-drip system as well as automatic switch-off, is available at retailers for VVX 2100 steam iron station is offered for steam iron station has a price tag of board is available from retailers for board for include value added tax. Further information about DeLonghi products is available on the website www.delonghi.com and from the DeLonghi Germany Info-Hotline 225521 (14 cents per minute from the German landline network). 72 lines with 56 characters (27 August 2008)/JM

Further information: Deutscher Pressestern Public Star Paulinenstrae 1, 65189 Wiesbaden, Germany Florian Hirt, E-mail: f.hirt@public-star.de Tel.: +395395 / Fax: +301995 This text and the associated photos are also available on the Internet at www.deutscher-pressestern.de or www.public-star.de. Publication free of charge. Please send courtesy copy. Attention, copyright: Photos only with reference to source and with this topic.

349. The

299 and the VVX 2000
249. The ADS 3600 ironing
299 and the ADS 2600 ironing
199. All stated prices are recommended retail prices and