SIT Q3 Report 2023

SIT, consolidated revenues of Euro 242 million in Q3 2023. Strong performance of Metering, +24% to Euro 64.0 million

Highlights

In the first nine months of 2023, SIT achieved:

• Consolidated revenues of Euro 242.1 million (-16.6% compared to the first nine months of 2022);
• Sales of the Heating & Ventilation Division of Euro 176.1 million (-25.0% compared to the same period of 2022);
• Sales of the Metering Division of Euro of Euro 64.0 million (+24.4% compared to the same period of 2022), of which Smart Gas Metering for Euro 44.5 million (+34.7%) and Water Metering for Euro 19.5 million (+5.9%);
• Consolidated adjusted EBITDA of Euro 21.9 million (-38.4% compared to the same period of 2022);
• Consolidated adjusted net profit of Euro 0.9 million, 0.4% of revenues, compared to Euro 8.2 million in the first nine months of 2022, equal to 2.8% of revenues;
• Impairment of Heating & Ventilation goodwill of Euro 17.0 million in light of the expected
  macrotrend in the sector;
• Consolidated net profit of Euro -19.4 million compared to Euro 10.5 million in the first nine months of 2022;
• Cash flow from operation for the first nine months of 2023 amounted to Euro -22.3 million after investments of Euro 16.6 million;
• Net financial position of Euro 159.0 million (Euro 138.7 million at September 30, 2022).

Heating & Ventilation Division

Sales in Italy decreased by 36.7% compared to the same period of 2022. This trend affected all the main product families and was driven by changes in sector incentives as well as the slowdown in home renovations. It is worth noting the particularly negative trend in the Direct Heating segment, of applications for Pellet Stoves (-76.0%) which in 2022 had benefit,ted from the sharp increase in gas prices.