SECOND QUARTER AND
FIRST HALF 2026 RESULTS
29thJULY2026
2
Highlights
FinancialsAGENDA
Outlook
Appendix
3 •Strong Q2organic growth ledbyheating, especially heat pumps •Water heating grew across geographies, with animproving trend inNorth America •Lennox JVprogressing very well691 €M +5.2% YoY organic1Net
Revenues
Adj.
EBIT •Margin expansion thanks to operating leverage, pricing and cost efficiencies •Continued investment for growth39 €M
5.7% margin2
vs. 4.8% in Q2’25 •Free cash flow reflected business seasonalityFree Cash
Flow-8 €M
vs. 3 €M in Q2’25 •FY 2026 guidance confirmed •Riello consolidated from July 1st, 2026; expected 190 -200 €M incremental net revenue in H2 2026Guidance 1.At constant exchange rates and on a like-for-like basis.
2.5.8% EBIT Adj. margin at like -for-like perimeter, excluding minor acquisitions in Combustion Technologies and Components.Q2 STRONG ORGANIC GROWTH AND MARGIN EXPANSION . FY GUIDANCE CONFIRMED
4 41.Pro-forma FY2025. Riello consolidated from July 1st 2026.Revenues 2,707 ~400 ~3,107 EBITDA Adj. [margin ] 317 [11.7%] ~35 [8.8%] ~352 [11.3%] EBIT Adj. [margin ] 193 [7.1%] ~18 [4.5%] ~211 [6.8%] # plants232 5 37 # people 10.8K ~1.2K ~12kNew perimeter1 +
ARISTON GROUP + RIELLO : KEY FIGURES FY 2025 PRO-FORMA
=€M
5
BALANCED EXPOSURE TOBOTH CLIMATE COMFORT AND WATER HEATING MARKETS
FY 2025 PRO-FORMA NET REVENUES INCLUDING RIELLO GROUP
Climate comfort Water HeatingTHERMAL COMFORT DIVISION
COMBUSTION TECHNOLOGIES
DIVISION
Residential heat -recovery ventilation Air Handling units Services & PartsCOMPONENTS DIVISION Heat Pumps Gas
storage &
instantSolarElectric
storage & instantHeating Hybrid systemsHeating Heat
PumpsHeating
BoilersAir
Conditioning~87%
~3%~3.1 €BN
REVENUES
FY 2025
~10%
6
RIELLO CLOSING COMPLETED . VALUE CREATION ACTIVITIES STARTED
Technology
Leveraging Ariston Group’s advanced platforms in renewables and high efficiency solutions, electronics
and connectivity
Sourcing & Logistics Optimizing procurement across common categories and leveraging increased scale in logistics
Product Portfolio
Enhancing through Riello’s commercial & industrial boilers and combustion technologies Digital & ICT Leveraging Ariston Group’s digital capabilities and
go-to-market tools
€25m EBITDA run -rate synergies from 2030 •Closing completed on July 1st, 2026 •Value creation workstreams started, well -defined execution planValue creation levers
7 •Historical trend: +4% volume growth, replacement market, with a shift to higher efficiency and renewable solutions. Exceptional peak in 2023, driven by HHP incentives and fear of gas boiler ban in 2024 (non materialized) •H1 2026: approved heat pump incentives were +40% in H1 2026 YoY , accelerating to +54% YoY in Q22 and +64% in May
•Latest updates3:
oBuilding Modernization Act ( GModG ) approved on July 10th 2026, removing 65% renewable -heating mandate on new installations oConfirmed BEG incentives for HHP until 2029, with updated criteria , from July 21st,
2026:
-Eligible cost cap from 30k€ to 28k€, then decreasing -20% climate -speed bonus to be gradually reduced -Max allowed incentive up to 80% for low income (previously 70%) oNew 15% "Made with Europe" incentive from Q1’27, details under definition www.kfw.de1.Germany represents circa 20% of 2025 Ariston Group revenues.
2.Source: BDH. Number of incentives approval includes air -to-air HP. Q2 2026 includes only April and May data.
3.Reform summary is non-exhaustive . Refer to German Government (www.bundesregierung.de) and Kreditanstalt für Wiederaufbau (www.kfw.de ) publications for complete details .4006008001,0001,2001,400 200 2011 2015 2019 2022 2023 2025 2024+4%+34%
-46%
-12%GERMANY : HEAT PUMP INCENTIVES +64% INMAY. INCENTIVES EXTENDED
UNTIL 2029, UPDATED CRITERIA
Germany1example: heating generators market , ‘000 pcs Gas & Oil, solid fuel
Heat Pump
Quarterly avg. of HHP incentive approvals2 (‘000)
410142421 2024312733
Q1 Q2 Q3 Q42024
2025
2026
8
Highlights
FinancialsAGENDA
Outlook
Appendix
9
Q2 STRONG ORGANIC GROWTH ACROSS ALL BUSINESS LINES
NETREVENUES , €M
Q2 2025 Organic FX Perimeter variationQ2 20266445.2% 0.6%1.6% 691 Heating: strong organic growth across geographies and
product categories
Water heating: organically up in all regions, especially in North America Services and Parts: continued positive trend FX: positive contribution from Mexico, Australia and Switzerland while negative in US Perimeter variation: minor acquisitions in Combustion Technologies and Components+7.4 % H1 2025 Organic FX Perimeter1
variationH1 20261,2922.4%
-0.2%2.1% 1,347+4.3 %Q2
H1Q2 comments
1.Includes Russia contribution in Q1.
10
ORGANIC GROWTH INALL REGIONS
NETREVENUES , €M Share of net revenues, %
H12026
Europe Asia Pacific & MEA Americas
74%17%9%
930995
2025 2026+7.0%
471510
2025 2026+8.3%
Q2 comments:Q2 H1 Q2 H1 Strong organic growth in most countries – Germany continued growth in heat pumps Ariston Group overperformed the marketPositive organic growth excluding Middle East conflict headwindStrong organic performance in both Water Heating and Heating FX tailwind in MexicoQ2 H1234 226
2025 2026-3.5%
116 117
2025 2026+0.7%
57 65
2025 2026+13.6%
128 127
2025 2026-0.7%
11
MARGIN IMPROVED THANKS TOPROFITABLE GROWTH
€M, % OFNET REVENUES
Adj. EBIT
0.00.10.20.30.40.50.60.70.80.91.0
2025 202666
5.1%74
5.5%+11.7%
+0.4 p.p.
010203040
2025 202631
4.8%39
5.7%1+28.3%
+0.9 p.p.
Q2 H1•Margin improvement thanks to operating leverage, pricing and cost
efficiencies
−Continued investment in digital, go -to-market and R&D −Middle East costs headwinds •Trajectory in line with historical seasonality •Reported EBIT at 36 €M; main adjustments:
−Net impact of right -sizing initiatives, including gains on real
estate disposals
−PPA amortizationQ2 comments 1.5.8% EBIT Adj. margin at like -for-like perimeter, excluding minor acquisitions in Combustion Technologies and Components.
12
FREE CASH FLOW PERFORMANCE INLINE WITH HISTORICAL SEASONALITY
•FCF in line with business seasonality •Stable NWC at optimized level to support business growth and client level of service •CapEx increased in line with announced investment plan Net Working Capital, % of rolling net revenues€M Mar 31, 2026 Jun 30, 2026430
15.6%442
15.9%+0.3 p.p.Free Cash Flow +0.5 p.p. like -for-like2Q2 comments -14
-77-80-60-40-2002040
2025 2026
Q2 H13
-8
2025 2026
Mar 31, 2025 Jun 30, 20251371
14.1%403
15.1%+1.0 p.p.
1.Main perimeter variation : Russia reconsolidated since April 2025.
2.Perimeter variation : minor acquisitions in Combustion Technologies and Components.
13
1.Adj. Net debt/(Cash) / Adj. EBITDA.NETDEBT INCREASE REFLECTING SEASONALITY
€M -77
-34 -37
Adj. net cash/(Debt) 31 Dec 2025FCF Cash outflow
for acquisitions-16
Financial,
FX charges
and othersDividends-3
Buyback6
Non -cash items Adj. net cash/(Debt) 30 Jun 2026-542
-702
MtM , IFRS16 variation and exchange rate effect on the Net Financial Indebtedness Leverage1 1.7x 2.2x
14 •New financing for Riello acquisition •Average non -current bank debt maturity at c. 3.5 years, with ~90% of maturities in 2028 -2032 •Limited exposure to inflation: >50% of long -term debt at fixed rates or hedged •Additional ~1€BNcommitted unused credit lines to fuel organic & inorganic growth 1.Adj. Net Financial Indebtedness is the sum of liquidity, debt and adjustments (put & call options, escrow accounts and positi ve MtM). Full details in appendix.LONG-DATED DEBT PROFILE WITH SIGNIFICANT FINANCIAL FLEXIBILITY €M
221 250559
-901-824
30 Jun 2025 31 Dec 2025 30 Jun 2026Liquidity
Debt
-1,273
Adj. Net Financial Indebtedness1 -542 -702 -654
15
Highlights
FinancialsAGENDA
Outlook
Appendix
16
Top line
•Organic revenues1growth between +1% and +4% YoY
Profitability
•Adj. EBIT between 7% and 8% thanks to continued cost efficiencies and operating leverage, while increasing investments in go -to-
market, new products, digitalization and R&D to fuel growth
Middle East
•Headwinds being managed at current intensity level
Cash Flow
•Capex between 5.0% and 5.5% on revenues to fuel growth •Cash flow generation concentrated in Q4, in line with historical seasonality M&A •Continuous assessment of strategic M&A and bolt -on options •Riello consolidated from July 1st, 2026; expected 190 -200 €M incremental net revenue in H2 20262026 G UIDANCE 1. Organic growth defined on a like -for-like basis, at constant FX.Focus on growth, while investing in strategic initiatives.
Q&A Session
18
Highlights
FinancialsAGENDA
Outlook
Appendix
19 19Net revenues €M 497 2001 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20251,9872,3793,092
2,6332,707CAGR 2001 -25: c.7%
Note :figures adjusted fornon-recurring events ortransactions, restructuring oremployment termination agreements, other events notrepresentative ofnormal business operations .financial figures from 2001 to 2017 arereported according toItalian GAAP and therefore notfully comparable with figures since 2018 .Figures areaccounted under theIFRS 9,IFRS 5and IFRS 16.2020 adj.EBITDA netof€5MCovid -19cost, that are recasted torecurring operations .EBITDA 2001 notadjusted .STORY OF SOLID AND CONTINUOUS GROWTH , ORGANIC AND INORGANIC IPO
20
202014
ACCESS TONEW
MARKETS /
TECHNOLOGIES
FLEXIBLE
ACQUISITION
STRUCTURE
SOLID SYNERGIES
EXECUTIONKEYDRIVERS OFVALUE CREATION2021 2022
2019 2017 2016 Multi -brand Service Platform
2015
Condensing Boiler Market WHE Specialty Stainless Steel
2023
LAST >10-YEAR M&A TRACKRECORD
2024
Solar WH in Israel HPWH in Australia High End WHB Platform
2025 2026
Components add -on Components add -on WHE plant in
Egypt
21
OURGLOBAL PRESENCE
>12k employees
Markets of
distribution >170
R&D Centers 34Countries of direct presence 40
Production sites 37PRO-FORMA INCLUDING RIELLO GROUP
22
DISTRIBUTION CHANNELS : MAINLY B2B2C
End-UserSanitary
WholesalerInstallers
Distributor Re-sellers/Installers
Modern Trade
E-Commerce (marketplace)•Quality of the relationship •Ease of installation and maintenance
•Training
•Pre-sales and after -sales support •High efficiency of the product range •Useful digital servicesInstallers priorities
Installers
Projects
Note: chart is illustrative and not exhaustive.
23
CURRENT REGULATION IN THE EUROPEAN HEATING MARKET : SUMMARY OF OUR MAIN COUNTRIES
EU: Energy Performance of Buildings Directive (EPBD) Stop incentives for «stand -alone boilers powered by fossil fuels » from 2025. Push towards decarbonisation technologies , reduction of energy consumption of existing building stock. Phase -out of fossil fuels used in boilers by 2040.
Incentives /
ban presenceReplacementTechnology -neutral
approach following
July 2026 reform.
Maintained incentives for HHP until 2029Incentives for Heating Heat Pumps and Water Heating Heat Pumps, Hybrids included .
No incentives for gas boilers New BuildingsTechnology -neutral
approach following
July 2026 reformHeat Pumps are mandated both for Heating and Water Heating.
Stand -alone gas boilers not allowed Incentives structure1Up to 80%
reimbursement, max
€28k expenditure, with further gradual reduction plannedUp to 50% tax deduction spread over 10 years, subject to income eligibilityDepending on type, Canton, rated power and systemIncome -based
incentives
for EU/EEA -
approved HHP
www.bundesregierung.de www.kfw.de
1.Reform summary is non-exhaustive . Refer to German Government ( www.bundesregierung.de ) and Kreditanstalt für Wiederaufbau (www.kfw.de ), Italian Ministry of Environment and Energy Security - MASE (mase.gov.it); Swiss Federal Office of Energy - SFOE/BFE (bfe.admin.ch), French Ministry for Ecological Transition (ecologie.gouv.fr), European Commission (energy.ec.europa.eu) publications for complete details .
24 Economic rights - % 1. Including 544,937 ordinary shares held directly by Mr. Paolo Merloni.SHAREHOLDERS AND VOTING RIGHTS
ASOF30 J UNE2026
Share
capital:
372.6mln
shares
Voting
rights125.5Ordinary listed shares
22.1
Ordinary non -listed shares225.0 Multiple voting non -listed shares17.0% 15.4%61.4%Merloni Holding Spa
2.1%Amaranta Srl
Centrotec SE
4.1%
Treasury sharesMarket1% stake
79.6%10.9%
Merloni Holding SpaAmaranta Srl3.3%Centrotec SE 6.2%Market1•Merloni Holding Spa: 198.0mln •Amaranta Srl: 27.0mln Voting rights - %58.9%
8.0%11.1%20.7%
Merloni Holding Spa Amaranta SrlCentrotec SE1.4%Treasury sharesMarket1N. of shares - mln •Centrotec SE: 22.1mln
25
ESG RATINGS : IMPROVEMENT CONTINUED IN 2026 WITH UPGRADE TO ‘A’ FROM MSCI
Silver Medal
Score: 68/100
2023 2024
Bronze Medal
Score: 57/100
B Household Durable sectorBBB Building Products sector Science Based Targets initiative validated4the “Road to 100” decarbonization 2030 targets (Scope 1, Scope 2, Scope 3 emission reduction targets) 1.The EcoVadis assessment evaluates a company on 21 sustainability criteria in four core areas: Environment, Labor & Human Rights, Ethics an d Sustainable Procurement.
2.The S&P Global ESG Score measures a company’s performance on and management of material ESG risks, opportunities, and impacts informed by a combination of company disclosures, media and stakeholder analysis, modeling approaches, and in -depth company engagement via the S&P Global Corporate Sustainability Assessment (CSA). The Corporate Sustaina bility Assessment includes 62 industry -specific questionaries.
3.MSCI ESG Research provides ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggar d),according to exposure to industry -specific ESG risks and the ability to manage those risks relative to peers.
4.In 2024.ESG
ratings
Emission
targets
approval
2025
Above median: 3.66 Electrical equipment peer groupLeading: 4.17 Electrical equipment peer groupLeading: 4.63 Electrical equipment peer groupSilver Medal
Score: 73/100
Global CSA Score
46/100
Building Products Global CSA Score
27/100
Household Durable Global CSA Score
39/100
Building Products
2026
Improved
2
3Improved
Improved Improved
ImprovedA
Building Products sector
Improved1
26
NETREVENUES BYDIVISION
€M Share of net revenues, %
H1 2026
2025 20261,203 1,239+2.9%
4257
2025 2026+34.5%
24 27
2025 2026+12.6%Thermal Comfort Combustion Technologies Components
599 636
2025 2026+6.2%
21 29
2025 2026+37.2%
46 52
2025 2026+12.4%
Q2 H1 Q2 H1 Q2 H192% 4% 4%
27
LIKE-FOR-LIKE KEY FINANCIALS SINCE 2024
€M 1.Excluding contribution from perimeter variation vs. Y -1.2024 2025 2026
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Reported net revenues 653 621 632 727 648 644 668 747 656 691 Like-for-like net revenues1635 612 632 727 648 624 647 729 640 681 Like-for-like Adj. EBIT130 27 40 63 35 31 48 79 34 40
28
HISTORICAL QUARTERLY GROWTH BY REGION
NETREVENUES , YOY % C HG., PRO-FORMA ADJUSTED
2021 2022 20231
Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY
Europe +6.6% +18.1% +17.5% +18.2% +15.3% +14.1% +16.2% +59.6% +50.8% +46.7% +38.5% +48.5% Asia Pacific & MEA +5.6% +20.3% +54.0% +52.3% +48.5% +18.0% +40.6% -1.4% +3.6% -1.7% -4.4% -1.1% Americas +16.1% +24.9% +15.5% +17.7% -5.1% +5.1% +7.4% -4.9% -22.2% -4.5% -3.9% -8.6% Total Group +7.6% +19.4% +23.8% +24.3% +18.7% +13.6% +19.7% +37.6% +31.5% +28.9% +23.1% +30.0% o/w organic +5.9% +19.9% +14.5% +12.6% +6.4% +4.2% +9.1% +7.0% +3.5% -1.4% -3.2% +2.5% In the table above, contribution from Ariston Thermo Rus LLC was excluded starting from Q2 onwards (and from the corresponding 2023 figures for comparison) until Q1 2026.2024 2025 2026
Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2
Europe -18.2% -20.3% -17.1% -10.1% -16.4% +2.1% +3.2% +4.8% +2.2% +3.0% +3.9% +8.3% Asia Pacific & MEA -4.5% -11.8% -7.4% +3.9% -4.9% +3.4% +0.0% -0.5% -6.3% -1.2% -7.7% +0.7% Americas 4.1% +5.0% -7.6% -6.3% -1.8% +0.2% -0.6% -3.4% +3.9% +0.3% -12.3% +13.6% Total Group -14.0% -17.0% -14.4% -7.3% -13.1% +2.1% +2.2% +2.9% +0.7% +1.9% +0.0% +7.4% o/w organic -13.6% -16.8% -13.7% -6.8% -12.7% +2.4% +3.6% +4.2% +2.1% +3.0% -0.3% +5.2%Ariston Thermo Rus LLC included in the table above as per the reported figures Note: Ariston Thermo Rus LLC was deconsolidated from end -April in 2024 and reconsolidated since end-March 2025.
1. Organic growth calculated pro -forma including Wolf -Brink in 2022 given the relevant magnitude of the acquisition.
29
HISTORICAL ORGANIC GROWTH
1. Organic growth excludes change of perimeter vs Y -1. and FX effects.
2. Organic growth calculate d pro -forma including Wolf -Brink in 2022 given the relevant magnitude of the acquisition.NETREVENUES ORGANIC1GROWTH YOY , %
FY 2021 FY 2022 FY 20232 FY 2024 FY 2025 H1 202619.9%
9.1%
2.5%
-12.7%3.0% 2.4%
30
HISTORICAL SEASONALITY
Demand for heating -related products concentrated toward 2HOperating leverage gives margins an even more pronounced seasonalityThe last quarter of the year usually generates >100% of yearly FCFQ1 Q2 Q3 Q4 Average 2017 -25Q1 Q2 Q3 Q4 Average 2017 -25Net revenues Adj. EBIT Cumulated FCF Quarterly weight on FY Quarterly weight on FY Quarterly trend
Q1 1H 9M FY
Average 2017 -25
31
INCOME STATEMENT : LIKE-FOR-LIKE
4€M Q2 2026 Q2 2025 % change Net revenue 681.3 643.6 +5.9%
EBITDA 71.4 95.7 -25.3%
% margin 10.5% 14.9% Adjusted EBITDA 68.3 60.4 +13.1% % margin 10.0% 9.4%
EBIT 37.6 60.9 -38.2%
% margin 5.5% 9.5% Adjusted EBIT 39.6 30.8 +28.9% % margin 5.8% 4.8% 1. Like-for-Like: excluding minor acquisitions in Combustion Technologies and Components.
32 1. Main adjustments on H1 2025 EBITDA: reconsolidation of Ariston Thermo Rus LLC: -40€M, to be considered as an extraordinary item.INCOME STATEMENT : REPORTED 4€M H1 2026 H1 2025 % change Net revenue 1,347.3 1,291.8 4.3%
EBITDA 134.6 158.1 -14.9%
% margin 10.0% 12.2% Adjusted EBITDA 133.5 124.5 7.2% % margin 9.9% 9.6%
EBIT 64.4 89.2 -27.8%
% margin 4.8% 6.9% Adjusted EBIT 73.5 65.9 11.7% % margin 5.5% 5.1% Net financial charges (17.5) (17.9) Income/(losses) from associates 0.5 (3.6) Profit before tax 47.3 67.7 Taxes (11.8) (8.6) Reported net profit 35.5 58.7 Adjusted net profit 41.7 38.61
33 1. The change in net working capital excludes (i) the NWC effect from the initial consolidation of acquired entities (since only the NWC movement from the acquisition date to period -end generates cash, i.e. the opening NWC at acquisition is a balance sheet effect , not a cash flow item); and (ii) FX translation effects , which by nature never generate a cash flow on any balance sheet item.
2. Excludes MtM derivatives impact . RECLASSIFIED CASHFLOW STATEMENT €M H1 2026 H1 2 025 Change
EBITDA 134.6 158.1 (23.5)
Tax paid (25.0) (21.7) (3.3) Provisions and other changes from operating activities (12.0) (51.1) 39.1 Change in working capital1 (110.3) (43.5) (66.8) Operating Cash Flow (12.7) 41.8 (54.5) CapEx (43.8) (38.1) (5.7) IFRS16 lease payments (20.3) (18.7) (1.6) Other changes2 (0.3) 0.9 (1.2) Free Cash Flow (77.1) (14.1) (63.0)
34 Note: Positive figures represent net cash.NETFINANCIAL INDEBTEDNESS 4 30/06/2026 31/12/2025 30/06/2025 Liquidity 558.9 249.9 221.4 minus: Current financial indebtedness (230.4) (86.4) (153.1) minus: Non -current financial indebtedness (1,043.0) (737.2) (748.1) Net Financial Indebtedness (ESMA guidelines) (714.5) (573.7) (679.8) Adjustments: Put & call options, escrow accounts and positive MtM 12.1 31.7 26.0 Adjusted Net Financial Indebtedness (previous calculation method )(702.4) (542.0) (653.7)€M
35
DISCLAIMER
This document contains forward -looking statements that relate tofuture events and future operating, economic and financial results of Ariston Group .Bytheir nature, forward -looking statements involve risk and uncertainty because they depend ontheoccurrence offuture events and circumstances .Actual results may differ materially from those reflected inforward -looking statements due toavariety of factors, most ofwhich are outside ofthe Group’s control, including the direct and indirect consequences resulting from the ongoing developments inUkraine and Russia .
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