Borsa I taliana I taliana – – STAR segm ent STAR segm ent Borsa PRI MA I NDUSTRI E PRI MA I NDUSTRI E ACQUI SI TI ON OF FI NN - - POW ER POW ER ACQUI SI TI ON OF FI NN Transaction overview Transaction overview Analyst presentation – Milan – February 1 9 , 2 0 0 8
Prim a I ndustrie: A Decade of Success Milestones 1 9 9 8 - 2 0 0 7 Grow th 1999: IPO on Milan Stock Exchange + 280% Revenues (+ 16% cagr) 2000: Acquisition of Convergent 2001: Acquisition of Laserdyne 2003: Investment in Shanghai + 250% Ebitda (+ 14% cagr) Unity Prima 2005: Acquisition of MATRA (former + 30x Net Income (+ 47% cagr) German distributor) 2006: Acquisition of MLTA (electronics) + 230% Price per share since IPO 2007: Acquisition of Osai (+ 18% cagr) (electronics) 2008: Acquisition of Finn-Power 2
Order Acquisition Trend Order Acquisition and Backlog (€m) 200.000 % 2 2 180.000 + R G A C 160.000 140.000 120.000 100.000 % 1 2 80.000 + R G A C 60.000 40.000 20.000 - Backlog as of December Yearly Order Acquisition 2004 2005 2006 2007 Order Acquisition (€m) 25.000 20.000 15.000 10.000 5.000 - JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2004 2005 2006 2007 3
2 0 0 7 Sales and Profitability 31/ 12/ 07 31/ 12/ 06 4Q07 4Q06 K€ % K€ % K€ % K€ % ITALY 42,896 24.3 35,786 24.2 12,931 22.1 12,374 26.3 EUROPE 82,774 46.9 68,400 46.4 27,016 46.1 22.353 47.5 NORTH 26,762 16.9 29,412 19.9 10,414 17.8 7,850 16.7 AMERICA ASIA & 20,897 11.9 13,971 9.5 8,229 14.0 4,514 9.5 ROW TOTAL 176,329 100.0 147,569 100.0 58,590 100.0 47,090 100.0 BACKLOG 63,789 55,568 3 1 / 1 2 / 0 7 3 1 / 1 2 / 0 6 4 Q0 7 4 Q0 6 K€ % on K€ % on K€ % on K€ % on sales sales sales sales EBI TDA 2 4 ,9 3 4 1 4 .1 1 9 ,7 9 7 1 3 .4 8 ,7 2 2 1 4 .9 7 ,9 4 4 1 6 .9 EBI T 2 3 ,4 3 2 1 3 .3 1 8 ,4 6 7 1 2 .5 8 ,2 4 1 1 4 .1 7 ,5 8 0 1 6 .1 EBT 2 2 ,7 5 2 1 2 .9 1 7 ,5 7 7 1 1 .9 8 ,2 1 0 1 4 .0 7 ,2 8 1 1 5 .5 NET 1 3 ,5 3 5 7 .7 1 3 ,7 0 6 9 .3 5 ,7 5 4 9 .8 6 ,1 9 9 1 3 .2 PROFI T 4
Com bined Entity in pills • 3 rd w orld player in sheet m etal m achinery ( after Trum pf and Am ada) • Last 3 years sales cagr > 2 0 % • 2 0 0 7 Pro form a sales: ~ € 4 1 6 m • 2 0 0 7 Pro form a EBI TDA: ~ € 4 9 m ( ~ 1 2 % ) • Com prehensive product range in lasers, punching, shearing, bending • 5 % yearly expense in R&D • 1 ,7 0 0 em ployees in 1 8 countries ( 2 2 0 in R&D) • 1 0 Manufacturing facilities in I taly, Finland, USA, China 5
Rationale of Acquisition Group is better positioned to play a prim ary role in the global high tech m achinery sector Finn-Pow er is one of few com panies in the w orld w ith sim ilar size as Prim a I ndustrie and high product com plem entarity Acquisition w idens the reference m arket and the grow th opportunity in all m ain product lines Group plays in the league of the best com petition w ith com parable product portfolio and reach € 1 0 m yearly synergies of pre-tax profit at steady-state € 1 2 0 m + tax shield I MPROVED GROW TH + 4 4 % EPS POTENTI AL ACCRETI ON I N 2 0 0 7 COMBI NED 6
The Acquisition € 1 7 0 m Enterprise Value - € 10m Finn Power Debt not refinanced + € 9m Finn-Power Cash € 1 6 9 m Uses € 64m 8-year bullet loan € 49m 7-year amortizing loan € 25m 3-year deferred payment * € 25m 1-year bridge-to-equity € 6m Prima Industrie Cash € 1 6 9 m Sources € 20m Working capital facility * In 2011 refinanced, if necessary, by a further € 25m approved credit facility. 7
Prim a I ndustrie products & applications Leading player in the industrial laser m achine tool sector 2 D laser cutting 3 D laser cutting Laser w elding Laser drilling 8
Finn-Pow er products & applications Leading innovator in sheet m etal fabrication system s X, C, E Series Punching Punch Press SG Shear Genius Punch/ SB Shear Brilliance Shearing BC, EBe Panel Bending Bending Press Brakes ( E-Series) Laser cutting LB, LP Laser Brilliance System s Night Train 9
Grow th & Profitability Revenues ( € m ) 250 200 150 100 50 0 2003 2004 2005 2006 2007 PRIMA INDUSTRIE FINN POWER Ebitda ( € m ) 25 20 15 10 5 0 2003 2004 2005 2006 2007 10
Product breakdow n The product portfolio has w idened significantly PRI MA I NDUSTRI E – 1 7 6 M€ FI NN-POW ER – 2 4 0 M€ After sales Electronics After sales service Punching 18% service 15% 22,5% 12% Laser Com bi 10% Laser sources 3% 2D Laser 3D Laser 2D laser 7% Bending Punching/ S 22% 45% 21,5% hearing 24% Proform a Com bined Laser Punching sources 13% 3D Laser 1% Punching/ S 9% hearing MACHI NERY 14% BUSI NESS LASER 3 9 % BUSI NESS 3 9 % Bending 12% 2D Laser& Laser com bi Electronics After sales 29% 8% service 11 Note: Analysis as of 2007. 14%
Geographical sales breakdow n Proform a Com bined I taly R.o.W. 20% 10% Eastern Europe 13% (* ) North Am erica 19% EU 38% Germ any 7% Spain 6% Other 9% UK 2% France 3% Scandinavia 11% Note: Analysis as of 2007. (* ) = including Russia and Turkey 12
Manufacturing facilities & Product range FACI LI TI ES LOCATI ON PRODUCT RANGE 2D & 3D Collegno (TO) – Italy Laser systems Cologna (VR) – Italy Panel Benders I TALY Moncalieri (TO) – Italy DOTS Electronics Barone (TO) – Italy CNC & Motion Control FI NLAND Punching, Punch/ shear, Kauhava – Finland punch/ laser Vilppula – Finland Automation Laser generators Chicopee (MA) – USA (Convergent) USA Special laser systems Champlin (MN) – USA (Laserdyne) CHI NA Shanghai – China Laser systems (JV) Wuhan – China Laser generators (JV) 13
Reference End-m arkets Highly diversified end-m arkets and sectors Low er exposure to cyclical sectors TYPI CAL CUSTOMER END MARKET TECHNOLOGY • HOME APPLIANCES • ELECTRICAL EQUIPMENT 2D LASER, • METAL FURNITURE PUNCHING, • HVAC PUNCH/ SHEARING, 80% PANEL BENDING, • LIGHTING EQUIPMENT PRESS BRAKES, • YELLOW GOODS LASER COMBI • TRUCKS & TRAILERS • … … .. • AUTOMOTIVE 10% • AEROSPACE & DEFENCE 3D LASER • ENERGY • MACHINERY & AUTOMATION, 10% ELECTRONICS • TRANSPORT INDUSTRY • AEROSPACE & DEFENCE 14
Group Sectors / Operations PRIMA INDUSTRIE S.p.A. CORPORATE FUNCTIONS CORPORATE (Finance, HR, IT, Integr.office) AMERICAN ELECTRONICS MACHINERY LASER ASIAN OPERATIONS SEGMENT SEGMENT SEGMENT OPERATIONS PRIMA INDUSTRIE PRIMA FINN-POWER PRIMA ELECTRONICS UNITY NORTH AMERICA Moncalieri (TO)- Italy PRIMA Kauhava-Finland Collegno (TO)-Italy Shanghai-China CONVERGENT LASERS OSAI 2D lasers PUNCHING OVL Chicopee (MA) Barone C.se CONVERGENT (TO) - Italy Wuhan-China LASERDYNE SYSTEMS 3D lasers BENDING Champlin (MN) SHEARING AUTOMATION 15
Direct presence in 1 8 m ajor Markets UK SW EDEN I TALY • BIRMINGHAM • GOTEBORG • COLLEGNO (TO) • MILTON KEYNES FI NLAND • MONCALIERI (TO) • KAUHAVA POLAND • BARONE CANAVESE (TO) • VILLPULA • BARI • KRAKOW • COLOGNA VENETA (VR) • FIESSE (BS) CANADA • TORONTO BELGI UM RUSSI A • GENT • MOSKOW GERMANY • MUNICH • FRANKFURT USA • MASSACHUSETTS • MINNESOTA JAPAN • ILLINOIS • OSAKA • GEORGIA • CALIFORNI A • NEW JERSEY • CONNECTICUT FRANCE • PARIS CHI NA • BEIJI NG • SHANGHAI • WUHAN • HONG KONG • SHENYANG = Manufacturing, sales, service = Sales, service BRAZI L • SAO PAULO U.A.E. • ABU DHABI SPAI N SW I TZERLAND I NDI A • BARCELONA • ZURICH • MUMBAI 16
Distributors in 3 5 + additional countries 17 = Manufacturing, sales, service = Sales, service = Distributors
Com bined Entity Em ployees distribution TOTAL ~ 1 ,7 0 0 Turin ( I taly) Finland 30% 30% Other I taly USA Other 14% 14% 12% Germ any Spain SW EDEN 3 % 3 % POLAND SW I TZERLAND CHI NA ( * ) R.o.W . RUSSI A 1 % France I NDI A 1 .5 % BRAZI L UK Belgium Canada 1 % 1 .5 % 1 % ( * ) = not including JVs em ployees: SUBTOTAL ~ 2 0 0 Shenyang: 3 2 em ployees Shanghai. 2 0 8 em ployees OVL Conv: 3 0 em ployees 18
I m proved strategic positioning Larger size and higher m arket share m ean higher profitability and stability during cycle 20% 18% Amada Competitor 1 16% Trumpf Ebitda Margin 14% Prim a I ndustrie Com bined w ith synergies 12% Combined w/ o synergies 10% Competitor 3 Competitor 2 Finn-Pow er 8% 6% 4% 2% 0,0 0,1 1,0 10,0 Relative Market Share Note: Relative Market Share calculated as Revenues on Leader Revenues. Relative Market Share and Ebitda Margin based on last available accounts (Prima Industrie, Finn-Power and Combined as of December 2007). 19
Steady-State Synergies Sales Synergies Cost Synergies Laser cross-sourcing Brand recognition enhancement Strengthening and integration of Electronics cross-sourcing the worldwide sales & service network Exhibition optimization Leverage of Prima Industrie network for combi-laser products Rationalization of sales network Higher critical mass allows more G&A rationalization efficient investment in untapped markets (India, Turkey, Middle East, Korea) € 5 -6 m ( 5 0 -6 0 % of Synergies) € 4 -5 m ( 4 0 -5 0 % of Synergies) at pre-tax level 20
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