De’Longhi SpA (dlg.mi): Premium Coffee Platform Mispriced as Appliance Maker; initiate at Buy

Research evidence excerpt

De’Longhi SpA (dlg.mi): Premium Coffee Platform Mispriced as Appliance Maker; initiate at Buy

Goldman Sachs De’ Longhi SpA (DLG.MI)

Exhibit 9: DLG is one of the few western Appliance companies that has performed in line

with its sector in recent years, despite increasing competition

Global Consumer appliance company TSR 5yrs

262%

230%

Winners have benefited from

a mix of: 1) international

and/or range expansion, 2) innovation,

180% 3) premium brand positioning, and 4)

penetration of white space

...while underperformers

132%

130% have been affected by: 1)

108% increased competition

and 2) external

85% 83% factors/tariffsin 2025.

80% 59% 62%

42%

34% 30%

30%

17%

Stoxx Mid Stoxx 600 Group De Longhi Shark Ninja Hisense Midea Haier Groupe Electrolux Whirlpool

%up -20%De Longhi 200Shark Hisense-1% MideaAverageHaier Groupe ElectroluxWhirlpool SEB

age Ninja SEB

-14%

-70% -36% -33% -56% -68% -63%

Source: Goldman Sachs Global Investment Research, LSEG Data & Analytics

In our view, the market appears to value De’Longhi too much like a Small Domestic

Appliance (SDA) manufacturer, and not enough like a premium coffee platform. That

framing looks increasingly outdated given the group’s exposure across household coffee,

bean-to-cup, Nespresso-related single-serve, prosumer equipment and professional

coffee machines. The acquisitions of Eversys and La Marzocco have materially improved

the quality of the business mix, lifting exposure to structurally faster-growing,

higher-margin and less promotional categories. We believe these factors support a

credible re-rating case: the household business should command at least a premium

SDA multiple, while professional coffee increasingly merits comparison with premium

commercial equipment peers rather than low-margin consumer durables.