Interpump S p A : Q4 2020 CONSOLIDATED RESULTS

PRESS RELEASE

INTERPUMP GROUP APPROVES THE CONSOLIDATED Q4 RESULTS & PRELIMINARY DATA FOR FY2020,

AND DISCLOSES EXPECTATIONS FOR THE 3-YEAR PERIOD 2021-2023

Chairman Fulvio Montipò: "Interpump closed FY2020, a year marked by the pandemics, demonstrating a very solid market position and confirming a structural, strong capacity to make profit.

Actions undertaken resulted in an outstanding free cash flow; this is a precious endowment to continue the intense M&A activity we are fully committed to"

DATA FOR THE FOURTH QUARTER OF 2020:

NET SALES: € 340.1 million (€ 342.5 mn in Q4 2019)

EBITDA: € 78.8 million (€ 77.6 mn in Q4 2019)

EBITDA/SALES: 23.2% (22.7% in Q4 2019)

CONSOLIDATED NET PROFIT: € 49.7 million (€ 45.1 mn in Q4 2019)

PRELIMINARY RESULTS FOR FY 2020:

NET SALES: € 1,294.4 million (€ 1,368.6 mn in FY 2019)

EBITDA: € 294.1 million (€ 317.9 mn in FY 2019)

EBITDA/SALES: 22.7% (23.2% in FY 2019)

CONSOLIDATED NET PROFIT:€ 152.7 million (€180.6 mn in FY 2019)

FREE CASH FLOW: € 203.8 million (€ 124.8 million in FY 2019)

NET DEBT: € 269.5 million (€ 370.8 million at 31/12/2019)

(after € 28.3 mn dividends paid, € 49.0 mn disbursement for acquisitions and € 48.5 mn in purchases of treasury shares)

EXPECTATIONS FOR THE 3-YEAR PERIOD 2020-2022

NET SALES: total increase in sales of approximately 33%

PROFITABILITY: preservation of excellence with EBITDA margin in the neighborhood of 22%

NET DEBT: between 1x and 1.5x yearly EBITDA

INTERPUMP GROUP S.p.A. - Via E. FERMI, 25 - 42049 S. ILARIO - REGGIO EMILIA (ITALY) - TEL.+39,0522,904311

FAX. +39,0522,904444 - [e-mail]

CAP. SOC. Euro 56,617,232.88 I.V. - REG. IMPRESE R.E. - COD.FISCALE 11666900151 - C.C.I.A.A. R.E.A. N. 204185

S. Ilario d'Enza, 12 February 2021 - The Board of Directors of Interpump Group S.p.A. met today and approved the consolidated Interim Report at 31/12/2020.

Q4 2020 RESULTS

Net Sales for the fourth quarter of 2020 totaled 340.1 million euro, a decrease of 0.7% from the 342.5 million euro in the corresponding period of 2019.

Sales by business sector and geographical area were as follows:

(€/000)

Rest of

Rest of	North	Pacific	the
Q4 2020	Italy	Europe	America	Area	World	Total
Hydraulics	45,406	83,760	49,499	31,389	26,631	236,685
Water-Jetting	9,730	39,765	30,497	14,919	8,530	103,441
Total	55,136	123,525	79,996	46,308	35,161	340,126
Q4 2019
Hydraulics	41,339	78,321	56,726	24,178	20,452	221,016
Water-Jetting	10,907	39,866	33,443	22,674	14,579	121,469
Total	52,246	118,187	90,169	46,852	35,031	342,485

Organic growth, at unchanged perimeter and before the currency exchange, was -1.7% (-12.4% for Water-Jetting and +4.2% for Hydraulics)

EBITDA amounted to 78.8 million euro (23.2% of sales) compared to 77.6 million euro in the fourth quarter of 2019 (22.7% of sales).

Consolidated Net Profit for the fourth quarter of 2020 was 49.7 million euro, compared to 45.1 million euro for Q4 2019.

PRELIMINARY CONSOLIDATED FY2020 RESULTS

Net Sales of 2020 totaled 1,294.4 million euro, a decrease of 5.4% from the 1,368.6 million euro registered in 2019.

Sales by business sector and geographical area were as follows:

(€/000)

Rest of

Rest of	North	Pacific	the
2020	Italy	Europe	America	Area	World	Total
Hydraulics	164,095	313,234	210,552	114,075	79,614	881,570
Water-Jetting	35,968	153,994	128,698	58,723	35,410	412,793
Total	200,063	467,228	339,250	172,798	115,024	1,294,363
2019
Hydraulics	179,158	323,390	225,427	87,348	86,924	902,247
Water-Jetting	41,897	163,579	145,602	69,446	45,847	466,371
Total	221,055	486,969	371,029	156,794	132,771	1,368,618

Organic growth, at unchanged perimeter and before the currency exchange, was -12.6% (-13.6% in Hydraulics, -10.8% in Water-Jetting)

EBITDA amounted to 294.1 million euro (22.7% of sales) compared to 317.9 million euro of 2019 (23.2% of sales). The following table sets out EBITDA by business sector:

2020	% on	9M 2019	% on
€/000	sales	€/000	sales	Change
Hydraulics	183,473	20.8%	187,168	20.7%	-2.0%
Water-Jetting	110,582	26.7%	130,722	27.9%	-15.4%
Total	294,055	22.7%	317,890	23.2%	-7.5%

Operating income (EBIT) was 207.7 million euro compared to 247.2 million euro in 2019.

Consolidated Net Profit for FY 2020, which currently stands at 152.7 million euro (was 180.7 million euro in FY 2019), does not incorporate the positive effect resulting from the application of the Italian law, passed in 2020, regarding the revaluation of assets.

Net cash flow from operating activities was 229.5 million euro (233.1 million euro in 2019). Free cash flow amounted to 203.8 million euro (124.8 million euro in 2019).

Net debt at 31 December 2020 was 269.5 million euro (370.8 million euro at 31 December 2019). In the course of the year, dividends paid amounted to 28.3 million euro; 48.5 million euro were spent in treasury shares, while disbursments for acquisitions amounted to 49.0 million euro. Additionally, at the end of the year the Group had commitments for the acquisition of stakes in subsidiaries worth a total of 62.7 million euro (54.3 million euro at 31/12/2019).

Capital employed went from 1,480.2 million euro at 31 December 2019 to 1,461.6 million euro at 31 December 2020, due to the opposite effects of the reduction of net working capital, on one side, and the acquisition of Transtecno on the other. The resulting ROCE was 14.2% (16.7% in 2019). ROE was 13.5% (17.1% in 2019).

At 31 December 2020 Interpump Group S.p.A. had 2,222,356 treasury shares in its portfolio, representing 2.04% of total share capital, purchased at an average cost of € 28.141.

UPDATE ON COVID-19 PANDEMIC AND EXPECTATIONS FOR THE 3-YEAR PERIOD 2021-2023

During the pandemic year, Interpump has rigorously put in practice all precautions necessary to reduce contagion risk on the workplace, in the various countries where the Group operates. Profitability of the business was preserved, as expressed by the EBITDA margins; free cash flow, at more than 200 million euro, was the highest ever, allowing to reduce net debt by the sizeable amount of 101 million, despite the regular payment of dividends, the progression of capex, and the continuation of share buyback.

However, the outbreak of the pandemic has obviously held back the development plans of the entire manufacturing sector. Therefore, it is time to provide an update of the indications about growth expectations for the next three years, as disclosed on 14/2/2020.

Considering that the growth strategy remains unchanged, and that Interpump's growth potential was not harmed in any way by the facts of 2020, the company deems appropriate to reiterate the same expectations, rolled forward one year.

Specifically, for the three years from 31/12/2020 to 31/12/2023: