Purmo Oyj : IR presentation April 2024

A leader in sustainable indoor climate comfort solutions

Investor presentation

April 2024

Agenda

• Purmo Group at a glance
• Operating environment and megatrends
• Reasons to invest in Purmo Group
• The Accelerate PG programme
• Sustainability
• Mergers & acquisitions
• Financial performance and guidance
• Largest shareholders

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Purmo Group at a glance

Purmo Group at a glance

A leader in sustainable indoor climate comfort solutions

Listed on	Industrial	#1	3,193	Over 100,000
position in
Nasdaq	history	radiators1 &	employees	installer
Helsinki	since 1953	#4 in radiant heating	globally	customers
		and cooling (RHC)2	(2023)	(2023)
Net sales (2023)		Adjusted EBITDA (2023)	Net debt / Adj. EBITDA (2023)
EUR 743.2 million	EUR 92.3 million	2.38x
Net sales by division (Q1 2024)	Adj. EBITDA by division (Q1 2024)

Manufacturing in	11 countries
Operations in	23 countries
Customers in	100+ countries

20%		Climate Solutions	19%
		Climate
		Products &
80%		Systems	81%

Climate Solutions

Climate

Products &

Systems

4 1) Purmo Group is number 1 in radiators when UK and Turkey are excluded. Purmo Group is number 1 in radiators in the following countries: Austria, Germany, Poland, Romania, Sweden, and Finland. 2) BRG and Interconnection (latest data from 2022).

Water distribution systems

System components & controls

Panel radiators

Other radiators3

Share of group net sales2

Purmo Group's addressable markets and solutions

Purmo Group estimates it is the only one in its field to offer a full range of heating and cooling solutions

Sales and end-market breakdown1

~21%		Non-residential	~39%
~79%		Residential	~61%

Repair, maintenance

• improvement New-build

High pressure pipes

Fittings

Share of group net sales2

Radiant heating	Heat pumps
and cooling

Underfloor and wall	Radiant ceiling	Heat	Heat
heating and cooling	panels	pump	pump
Air heating and		(10 Kw)	(6 kW)
cooling

Convectors

Air conditioning

Ventilation

5 1) Based on management's estimates.

1. Out of total net sales in 2023.
2. Includes radiator accessories.

Hydronic control valves

Electronic controls

Horizontal panel	Horizontal designer	Low-temperature
radiators	radiators	radiators

Decorative	Towel warmers	Electric
tubular		radiators
radiators

Operating environment and

megatrends

Outlook for broader addressable market in Europe

European heating (hydronic & electric) and radiant cooling market - MEUR

The hydronic radiator

				Forecast
			+7.8%
					14,101
11,804	12,114	12,635	1,614
1,571	1,669
1,603		1,541
	1,616	1,620
1,802		2,404
	2,021
2,370		2,058
			7,422	8,414
		6,898
6,028

	17,220		CAGR 22-27
			1.7%
15,534	1,742	Fixed electric heating
1,677	1,853	Radiant heating & cooling1	0.6%
1,759	2,682	Hydronic rads	2.5%
2,474

			Hydronic heat pumps	12.7%
		10,943
9,624

market is driven by:

1. Activity in new build and renovation with traditional systems
2. New wave of transition to low- temperature heat pump powered systems

• The need for replacing traditional boilers with heat pumps is influencing radiator installations
• The change in a radiator improves heat output with lower operating temperatures

2022

2023

2024

2025

2026

2027

1. Radiant Heating & Cooling

Note: BRG data includes manufacturer sales estimates across all segments (covering residential and commercial); data for 28 main European countries (for radiant heating and cooling, limited to: DACH, Benelux, FR, IT, PL, RO, SE, UK)

Segments included: Fixed electric heating (Electric rads, electric towel warmers, electric underfloor heating & radiant panels); radiant heating & cooling (pipes, fixing systems, components incl. actuators, manifolds, room thermostats & wiring centres, hydronic panels ); Heat pumps (hydronic air to water heat pumps incl. monobloc and split units); Hydronic rads (steel panel rads, towel warmers, decorative tubular rads, & convectors); Radiator Market Driven by Boiler-to-HP Upgrades; Hydronic rads (excluding towel warmers) in main European countries: Germany, United Kingdom, France, Italy, Poland, and Belgium.

7 Source: BRG, Rads and HP August 2023, FESH and RHC December 2023, PG analysis and management estimates for adjustment

European hydronic core radiator market to grow 5.6% in 2022-2030 (CAGR), supported by heat pumps

Hydronic radiator sales value in core European markets1, BEUR

2.8

								+5.6%	2.5
										2.3
	1.8	1.8	1.8	1.9	1.9	2.1

2022	23E	24E	25E	26E	27E	28E	29E	2030E
	Scenario with faster adoption of HP radiators			Other radiator market (baseline)
	Radiator market driven by HP upgrade renovations2

1. Core European markets: Germany, United Kingdom, France, Italy, Poland, and Belgium
2. Boiler-to-HPupgrade refers to an air-to-water heat pump installation in an existing building replacing a fossil fuel or electric boiler.

Source: Third party independent analysis into Heat Pump driven renovation market.

CAGR

2022-2030

~33%

~18%

~ -1%

The renovation-driven demand for radiators related to upgrades from boilers to heat pumps

• Including a requirement for system upgrade with reduced flow temperatures
• Radiators are an affordable renovation option compared to underfloor heating
• In each heat pump renovation2 three to five radiators on average will be replaced
• Changing to new radiators will be needed in >50% of HP renovations

Ulow-E: The heat pump radiator for

renovation projects

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Smart product development

Ulow-E heat pump radiator

• A simplified version of the Ulow-E2 radiator
• A low temperature panel radiator with integrated fans that boost heat output at low system temperatures
• Especially suitable for renovation projects when heat generators are upgraded
• Can easily serve as a replacement for older radiators without having to change the pipe system
• The heat output is 60 per cent higher than a standard radiator
• Designed to be combined with a heat pump or condensing boiler

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