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PRESS KIT 2018

Index

Presentation 2

2017 Key figures 3

History 4

Worldwide presence 7

Sustainability and focus on the consumer 8

Objective: Sustainable Efficiency 10

Connectivity: Comfort and Savings 12

Senior Management 13

Passion for excellence 14

People and places at the centre of our business 16

Thermal Comfort Division 18

Components Division 21

Burners Division 22

On behalf of Ariston Thermo Group:

Alessandro Iozzia – Davide Ghellini Sargenti

Brunswick Group

e-mail: ariston@brunswickgroup.com

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PRESENTATION

PROFILE

A worldwide leading company in the thermal comfort industry, Ariston Thermo offers a

complete range of heating and water heating products, systems and services designed to

provide the maximum comfort with the minimum use of energy.

GROUP SYNTHESIS

Ariston Thermo, founded in 1930, is the most global Italian company in the heating sector

with 90% of its turnover coming from outside Italy.

In 2016 the Group sold 7 million products in over 150 countries, reaching €1.57 billion

turnover.

It has 7.000 employees and 65 companies and 5 representative offices in 38 countries.

It has a leading position in three different market sectors (thermal comfort, burners, and

components), offering a complete range of products, systems and services (boilers, water

heaters, solar thermal systems, heat pumps, air conditioners, burners, pre-post sales

services, heating elements, thermostats, system components) mainly under the brands

Ariston, Chaffoteaux, Elco, Atag, Racold, NTI, HTP, Cuenod, Ecoflam and Thermowatt.

Ariston Thermo’s goal is to reach, by 2020, the 80% of the business from high efficiency

and renewable energy solutions. In 2017 the Group reached the 60% target.

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2017 KEY FIGURES

2017 KEY FIGURES

• 1.57 billion Euro in sales

• 7 million products sold per year (and 36 million components)

• 79 million Euro in R&D and investments

• 7.000 employees

SALES BY BUSINESS SEGMENT

• Thermal Comfort 89%

• Burners 7%

• Components 4%

SALES BY GEOGRAPHIC AREA

• Italy 10%

• Western Europe 40%

• Eastern Europe 18%

• Asia 20%

• Other 4%

EMPLOYEES BY BUSINESS SEGMENT

• Thermal Comfort 87%

• Burners 5%

• Components 8%

EMPLOYEES BY GEOGRAPHIC AREA

• Italy 22%

• Western Europe 39%

• Eastern Europe 7%

• Asia 25%

• Other 3%

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HISTORY

The growth of Ariston Thermo has been driven by innovation, passion and ambition to

explore continuously new trends and new markets.

1930’s

Founded in Italy in 1930.

Aristide Merloni founds Industrie Merloni in the Marche Region of Italy and starts the

production of weighing scales.

1960’s

Production of electric water heaters.

Launch of the Ariston brand.

1970’s

The Company becomes a leader in the water heater segment and expands into Western

Europe’s main markets.

1980’s

Already a market leader in water heating, the Company enters the heating sector and

starts producing boilers.

1990’s

Subsidiaries set up in Eastern Europe and Asia. The Company consolidates its global

leadership in heating and water heating. Acquisition of Racold, the largest water heating

company in India. Opening of the first wholly owned factory in China.

2000’s

Acquisition of a number of historical companies and brands in the heating and burner

industry: Chaffoteaux, Elco, Cuenod, Ecoflam and Termogamma SA. Opening of a new

factory in Saint Petersburg, Russia. Following this growth, the Group changes its name to

Ariston Thermo (2009) and becomes one of the global leaders in the water and space

heating industry, with a full range of products, systems and services.

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2011

By acquiring Cipag SA and Domotec AG, Ariston Thermo confirms its leadership in

Switzerland in the production, distribution and maintenance of water heating systems.

2013

Ariston Thermo finalises the acquisition of DhE – an Italian leader in the sector of heating

elements for commercial and industrial applications – and enters into a joint venture in

Uzbekistan for manufacturing and selling high-efficiency home heating systems.

2014

Acquisition of Atag Heating, a Dutch high-end brand in the heating industry. Acquisition of

Heat Tech Geysers, the second player in the South African market for water heaters.

Inauguration of a new factory in Vietnam, at the forefront in the production of electric

water heaters.

2015

The Group opens a new branch, Ariston Thermo Indonesia, and debuts on the Danish

market with the acquisition of Gastech-Energi A/S. The Group also acquires SPM, French

manufacturer of burners and components. On Ariston Thermo’s 20th anniversary in

Russia, a new logistics hub is opened in Saint Petersburg.

2016

Ariston Thermo continues growing, through both acquisitions and the achievement of

important goals in historical sites: NTI – the brand leader in Canada and one of the leaders

in the USA in the condensing boiler segment – joins the Group with products and services

famous for their quality and reliability; in Italy, the Arcevia and Osimo plants win the

coveted World Class Manufacturing bronze medal.

2017

The Group acquired the 51% of HTP, a US company leader in innovative and high-

efficiency solutions for water heating and heating, continuing its path of growth and

reinforcing its presence in the North American market. In the same year, Ariston Thermo

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acquires the majority stake of Atmor, a leading company in the technology of

instantaneous electric water heaters for residential and commercial use. Ariston Thermo

also consolidates its presence in Tunisia with the opening of a new manufacturing facility

for instantaneous gas water heaters for North African markets.

Moreover, Ariston Thermo organized and hosted in Fabriano the global ceremony of the

WCM Awards, the prestigious biennial event during which the international leaders of

World Class Manufacturing are rewarded.

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WORLDWIDE PRESENCE

• 26 production sites in 15 countries: Belgium, Canada, China, France, Germany, India,

Italy, Netherlands, Russia, South Africa, United States, Switzerland, Tunisia, Uzbekistan

and Vietnam.

• 65 companies and 5 representative offices in 38 countries: Argentina, Austria, Belarus,

Belgium, Canada, China, Croatia, Czech Republic, Denmark, Egypt, France, Germany,

Hungary, India, Indonesia, Israel, Italy, Kazakhstan, Morocco, Netherlands, Nigeria, Poland,

Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, Spain, Switzerland,

Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United Nations,

Uzbekistan and Vietnam.

• 23 centres of competence for R&D in 15 countries.

• Distribution in 150 countries.

The understanding of local needs has made Ariston Thermo the world’s partner in energy

efficient comfort.

As well as a strong position in European markets, Ariston Thermo has a leading position in

key emerging markets (fastest growing economies).

As early entrant into these markets, Ariston Thermo has succeeded in establishing deep

roots and high brand awareness.

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SUSTAINABILITY AND FOCUS ON THE CONSUMER

Paolo Merloni – Executive Chairman

“Our ambition is to be the best partner in the offer of water and space heating

solutions, confirming our position at the top of the sector globally”.

2017 was a very positive year for our Group. We grew globally, improving in

efficiency and productivity, continuing our research and development

commitment and offering a wider, more complete range of products and

services. We strengthened our increasingly well-known brands: the

foundations for our future growth. The Group also grew thanks to new

acquisitions, including the US HTP – consolidating our presence in North

America after acquiring the Canadian NTI in 2016 – and the Israeli Atmor

bringing with it distinctive skills in the instantaneous electric water heater

range. Our focus on excellence was confirmed by our World Class

Manufacturing commitment: our Arcevia and Osimo plants were awarded the

Bronze Medal during the WCM Awards 2017, which we had the honour of

hosting in the Marche region with more than three hundred managers of

associated companies from all over the world.

We further strengthened attention for our people, fundamental heart and

engine of the Ariston Thermo successes; introducing new training paths,

increasing care for growth, resource appraisal and employer branding. At the

start of 2017 Laurent Jacquemin, whose entire career has been in the Group,

was appointed Chief Executive Officer.

Innovation and sustainability have continued to have a central role in our

growth. We have opened the new R&D, Ariston Thermo Innovative

Technologies centre to speed up the development of cutting edge solutions

for the thermal comfort sector. The economic results achieved confirm our

CONTINUE INVESTMENTS

IN INNOVATION AND

EFFICIENCY

A YEAR OF RECORD

GROWTH

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commitment. In 2017, the Group recorded its best result ever in both turnover

and profitability, and we have laid strong bases for an increasingly more

focussed growth in 2018.

For the future, our vision, based on the keywords sustainability, comfort and

accessibility, is to offer sustainable comfort to all consumers; developing and

marketing products based on energy efficiency and renewable sources,

tailored to consumer needs and

accessible globally. Our ambition is to be the best partner in the offer of water

and space heating solutions, confirming our position at the top of the sector

globally; through a growth path where being faithful to our core business and

close to customers are the main drivers.

To meet these ambitions, Ariston Thermo is faced by three key challenges:

consolidate all the markets in which we operate, reinforcing our distribution

channels and increasing our leadership in the key thermal comfort categories;

continue offer clients a service of excellence to accompany them along the

product lifecycle; maintain a technological innovation, environmental

sustainability and cost leadership. A target we know we can reach, especially

thanks to the fundamental role played by our people. With their commitment,

value and enthusiasm, they are the irreplaceable ingredient in our success

recipe. My heartfelt thanks go to them for the precious work done and I hope

2018 will bring with it just as much satisfaction.

A NEW VISION, A NEW

MISSION

TRUST IN CORE BUSINESS

AND FOCUS ON THE

CONSUMER

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OBJECTIVE: SUSTAINABLE EFFICIENCY

Efficient products and processes can make a decisive contribution to reducing energy

consumption and environmental impact without sacrificing comfort. Ariston Thermo

intends to play a lead role in this scenario.

RISING CONSUMPTIONS CAUSES HIGHER CO2 EMISSIONS

The most recent estimates on the amount of global CO₂ emitted into the atmosphere, as a

direct consequence of energy consumption, show an increase from 32.1 Gton/year in

2016 to about 42.7 Gton/year in 2040, absent regulatory interventions. Such an increase

would seriously put environmental sustainability at risk.

ENERGY EFFICIENCY REPRESENTS THE MAIN INTERVENTION TO CURB CO2

According to the 2017 report of the International Energy Agency, if we consider the total

number of possible areas of intervention for curbing CO₂ emissions by 2040, 44% derives

from the energy efficiency of products used by end users.

IN EUROPE, THERMAL COMFORT ACCOUNTS FOR 28% OF TOTAL ENERGY

CONSUMPTION

Analysing Europe alone, energy consumption and the related emissions are caused by

three main areas: 23% is attributable to the industrial sector, 28% to transportation, and

28% to domestic and commercial thermal comfort.

80% OF RESIDENTIAL ENERGY CONSUMPTION IS FOR THERMAL COMFORT

Thermal comfort is particularly important in residential energy consumption. On average,

final energy consumption for domestic heating represents approximately 67% of total

consumption, and increases up to 80% if energy consumption for water heating is

considered.

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A SIGNIFICANT CONTRIBUTION

The hypothetical replacement of the products installed in Europe with new Ariston

Thermo high-efficiency, renewable energy technologies would enable average

consumption savings of 35%, providing the same comfort.

THE GROUP’S PRIORITIES

Ariston Thermo offers a wide range of highly energy efficient products which reduce

consumption compared to traditional systems and guarantee top level performance for

maximum comfort. The Group develops and produces solutions which harness renewable

energy sources: solar thermal systems and heat pumps derive clean energy from the sun

and air to heat spaces and produce hot water.

Ariston Thermo invests in the efficient and responsible management of its production

processes, improving environmental performance by scrupulously controlling the impact

of activities and services. The Group is continuously optimising energy consumption and

the reuse of processing waste. Personnel’s training and maximum attention to safety are

the Group’s priorities in all its activities.

OBJECTIVE: SUSTAINABLE EFFICIENCY

Being aware of the impact that its industry produces in terms of energy consumption and

atmospheric emissions, Ariston Thermo has placed energy efficiency at the heart of its

sustainable growth strategy.

In 2017, the Group carried out 60% of its business with high-efficiency or renewable

energy solutions. By 2020, Ariston Thermo’s goal is to reach the 80% target.

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CONNECTIVITY: COMFORT AND SAVINGS

Ariston Thermo offers the widest range of connected products, systems and services on

the market for the management of heating, cooling and water heating.

MAXIMUM COMFORT, ALWAYS AND EVERYWHERE

With a simple App it is possible to manage intuitively the functions of the water and space

heating system and adapt them to your own needs.

Switching on, thermoregulation and time programming, with a few simple actions.

SAVINGS WITHIN REACH

Connected products and systems include a detailed report on energy consumption, to

maximise efficiency, reduce consumption and environmental impact.

WORRY-FREE GUARANTEE

The Ariston Thermo remote control platform allows assistance and maintenance centres

to monitor all the products in real time and intervene promptly, to the benefit of the

customers’ well-being and safety.

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SENIOR MANAGEMENT

Laurent Jacquemin

CEO

Antonio Picca Piccon

CFO

Giorgio Scaloni

Strategic Marketing

Luca Mezzopera

Human Resources

Marco Conti

Components

Giuliano Conticini

Burners

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“PASSION FOR EXCELLENCE”

The Quality culture is not limited to designing and manufacturing products. It involves all

business processes, from supplier management to support services, in order to

continuously improve our customers’ experience.

We listened to over 60.000 consumers in the last five years to improve our products and

services. Our long-running habit of listening to our customers through market research

and focus groups is an integral part to our pursuit of excellence: they give witness to the

high Quality of our brands and products and thanks to them Ariston Thermo is able to

continuously improve.

QUALITY OF PRODUCTS

Our objective is to satisfy customers with high performance, highly energy efficient

products which are functional, reliable and durable, present limited installation and

maintenance costs, and are increasingly more integrated with systems that the customer

can manage directly.

QUALITY OF SUPPLIERS

The criteria for selecting the suppliers of raw materials and components and the planning

and development projects drawn up with them guarantee conformity and compliance

with the quality standards of Ariston Thermo in all manufacturing processes.

QUALITY OF PRODUCTION PROCESSES

The Group’s manufacturing facilities are involved in a continuous process to check

performance and quality, constantly improving every aspect linked to the manufacture

and maintenance of the plants. The extensive application of the World Class

Manufacturing (WCM) programme integrates flexibility, control of processing times and

reduction in manufacturing costs, while focussing increasingly on safety and the

environment.

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QUALITY OF SALES AND AFTER-SALES SERVICES

A continuing professional growth path has been developed for our sales network covering

product awareness and knowledge of the most advanced installation configurations. The

processes for technical support management are standardised and increasingly included

in a single remote servicing system which aims to identify product anomalies in real time,

also during the post-warranty period, to identify the type of intervention required and to

proceed with ordering spare parts more and more rapidly and at increasingly higher

service levels.

WORLD CLASS MANUFACTURING

Ariston Thermo applies the WCM methodology in its facilities over an increasing number

of processes, in order to constantly improve productivity and the quality of the products

and services, thus ensuring safety and respect for the environment. methodology,

implemented in 2010, is now operational in 13 plants; it provides an integrated system of

standardised tools, designed to standardise processes, eliminating waste and improving

quality, safety, environmental protection and people involvement.

FABRIANO HOSTS THE WCM AWARDS

Ariston Thermo and Elica hosted the WCM Awards 2017, a prestigious biennial global

event, during which the excellences in World Class Manufacturing methodology from

companies and manufacturing sites around the world have been awarded. On 30

November, Fabriano, in the Marche region, was transformed for a day into the global

centre for manufacturing innovation, bearing witness to the key role of the region’s

manufacturing excellence in Italy. During the event, awards were presented which had

been won over the past two years by various facilities of the companies which belong to

the WCM programme. Among the facilities awarded, there were also two Ariston Thermo

plants at Osimo and Arcevia, which won the Bronze Medal.

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PEOPLE AND PLACES AT THE CENTRE OF OUR BUSINESS

Collaboration with universities

Ariston Thermo is a key player in orientation and recruitment initiatives at the best Italian

and international universities and business schools with a view to continuity, in order to

help identify and immediately develop innovative skills and technical know-how.

Selection of talents

Ariston Thermo is continuously looking for talent: the recruitment and assessment

processes aim to identify the skills seen as fundamental to excel on the market in line with

the company leadership model, which is based on the shared values scale of Ariston

Thermo.

Training

Institutional training programmes support young professionals, experienced figures and

global managers in their development path. In international and multicultural classrooms,

managerial and technical skills are developed which are strategic for the Group. Training

means development.

Internationalism

The Group’s international dimension, in the provenance of its staff and in the global

development of careers, enables a precious sharing of knowledge, skills and values, for a

deeper understanding of markets and cultures which are constantly developing.

Performance appraisal

The results achieved and the organisational conduct – such as the attention to customers,

the development of the team, the taking on of responsibility – are important elements

which allow overall performance to be assessed. The constant feedback guarantees

development for the future.

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Meritocracy

Ariston Thermo works to outline the most suitable development path for each person,

based on the skills and results achieved, but also on aptitudes and development potential,

thanks to an annual multi-level assessment process on all markets by the Development

Committees.

ARISTIDE MERLONI FOUNDATION

Local territory, economy and culture are the pillars of the Aristide Merloni Foundation,

which has been serving the community for almost 55 years.

Supporting economic recovery after the earthquake

During 2017, the Aristide Merloni Foundation, mainly funded by the Ariston Thermo

Group, focused its activities and resources on the areas of central Italy hit by the

earthquake in 2016. The aim of the project “Rinasco – Salvare l’Appennino” is to develop

resources still present in the area and reorganise local communities and the local

economy, above all through the combination of know-how and digital technologies.

Supporting art and culture

In San Ginesio, in the province of Macerata, a wooden reproduction of the famous work

by Canova “Love and Psyche” was found intact among the rubble of the earthquake. At

the behest of Francesca Merloni, UNESCO Ambassador for Creative Cities, the statue, as

for the Greek myth of the Omphalos, has become the symbol of the resilience of central

Italy and the desire for rebirth of the whole Apennines.

SUPPORT FOR LOCAL COMMUNITIES

Attention to the needs of local communities, in all of the countries where the Group

operates, is a necessary requisite for Ariston Thermo’s doing business. Some of the main

initiatives in 2017 were realised in Italy, Romania, Indonesia, Hungary and Vietnam,

focusing especially on children, younger generations and populations affected by

adversities.

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THERMAL COMFORT DIVISION

Comfort always on

Ariston is the trusted brand designed to let people enjoy every precious moment they

spend at home with their family.

Ariston combines everlasting quality, advanced performance and Italian style. With a

unique expertise and cutting edge innovations in heating and water heating products,

Ariston Thermo is the global specialist in thermal comfort. For over 50 years, the Ariston

brand has been consistently greeted with trust by millions of families around the world,

selling products in more than 150 countries.

Powered by solutions

The premium heating solution provider which covers, by first class service, the needs of the

consumers during the entire life cycle of systems and products.

Since 1928 Elco is a European leading brand that proposes smart solutions and

technologies designed to meet the needs of any domestic and commercial project,

ensuring maximum energy saving. For decades, Elco has been at the forefront of burner,

condensing boiler and solar technology, installing over 1.7 million heating systems

throughout Europe. A first-class service team provides 365 days a year, 24 hours a day, 7

days a week technical support to ensure that customers’ heating systems work reliably

and efficiently for their entire life.

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Master the best of every energy

Chaffoteaux has always been and will continue to be engaged in simplifying the

professional operators’ work by developing an evolutionary offer integrating all sources of

energy. This offer guarantees accessible and eco-performing heating and hot water

solutions.

For more than a century, Chaffoteaux has been making the difference by giving access to

thermal comfort to millions of people every day. Precursor in the development of multi-

energy solutions, Chaffoteaux is proud to share with its customers more than 100 years of

proximity to markets and of innovations for tomorrow. Chaffoteaux offers a complete

range of heating and hot water multi-energy solutions, using the latest technological

innovations in energy performance, resource management and energy savings. ChaffoLink

is a technological revolution that allows the end-user to remote control its heating system

and adapt energy consumption to his needs. For professional installers and maintenance

companies, it offers 24/7 access to the equipment, enabling telediagnostic and

predictiveness.

ATAG keeps innovating in durable energy technologies, working from its core competence:

high efficiency boilers. Its growth is based on a strong focus on customers.

Atag offers a wide range of both domestic and commercial boilers and of solar systems

converting light into heat via the thermal solar technology. ATAG One is the latest

innovation and it controls the room temperature via remote control.

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India’s largest water heating solutions provider. Achieving customer delight by providing

water heating solutions with a customer centric approach.

Racold offers a complete range of water heaters – electric, gas, solar and heat pump ones

– that are energy efficient and intelligent.

Our commitment is to make our customers as successful as possible and provide them the

ultimate in quality products and outstanding customer support. Success is an enjoyable

journey, not a destination.

NTI offers a wide range of legacy and gas boilers, a complete range of water heating

systems, from instantaneous to storage to solar ones, and whole home systems reducing

installation costs, footprint and environmental impact.

“High efficiency is all we do and all we care about. That, in turn, better enables us to help our

customers climb the learning curve and endure the growing pains these products inevitably

demand.”

HTP Comfort Solutions produces a wide range of highly efficient products and system

components for heating and water heating. We use the most durable materials to

realize long lasting products to help customers save energy and money.

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COMPONENTS DIVISION

For more than 50 years Thermowatt delivers high quality and innovative components for

the electric appliances industry helping its customers building unique and effective product

portfolios.

Thermowatt offers heating elements and thermostats for electric water heating,

household appliances, and both professional and industrial applications.

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BURNERS DIVISION

Innovation and reliability, energy and care for the environment. The best technologies for a

range of burners going from 11 kW to 80 MW.

Elco, Cuenod and Ecoflam are present in over 100 countries, with cutting-edge

combustion technologies, that satisfy the strictest local regulations, as it is the case of the

Ultra-Low NOx products.

Continuously searching for new technological solutions, Elco makes top performance

burners for heating and industry, offering a vast range of services that can establish a

lasting relationship with customers. Range up to 80 MW.

With more than a century’s experience in designing and manufacturing burners, Cuenod is

still evolving its technologies to offer comfort, safety and reliability, whilst guaranteeing

environmental protection.

The flexibility of Ecoflam solutions has enabled the creation of a range of highly

customisable products: from 12kW to 34 MW.

Present in over 100 countries, we develop cutting-edge combustion technologies,

satisfying the strictest local regulations; that is the case, for example, of the Ultra-Low

NOx products, developed in response to specific market requirements.