PRIMA INDUSTRIE GROUP 2 AGENDA REORGANIZATION & RESTRUCTURING - PDF document

STAR Conference London, October 8 th 2 0 0 9 PRIMA INDUSTRIE GROUP

2 AGENDA REORGANIZATION & RESTRUCTURING COMPANY OVERVI EW MARKET OVERVIEW FINANCIALS

PRIMA Key Highlights Leading global player in laser & sheet m etal m achinery Over 3 0 years experience in the sector Com prehensive product range in laser system s and sources, punching, shearing, bending and autom ation About 1 ,5 0 0 em ployees ( ~4 0 % in production, ~3 0 % in custom er care) ~ 1 0 ,0 0 0 m achines and system s installed w orldw ide 2 0 0 8 sales: EUR 3 6 7 m Average yearly R&D costs: 6 % of sales Manufacturing facilities in I taly, Finland, USA, China R&D centers in I taly, Finland and USA W orldw ide sales and service netw ork 3

PRIMA Group Sectors GROUP Sheet Metal Laser Electronics Sheet metal High power CO 2 , Power and control fabrication Nd: YAG and Fibre laser electronics, machinery: punching, systems and Numerical controls (also punching/ laser, generators for cutting, equipping the machines shearing, bending, welding and drilling 2D manufactured by the automation and FMS and 3D parts Group) 4

PRIMA Main Figures 2 0 0 8 revenues by sector Main figures Sales ( Euro m illion) Figures do not match with Segment Reporting, because they have been restated . 2 0 0 8 revenues by geography (* ) (* ) 2008 consolidation area includes Finn-Power Group figures for 11 months (Feb.-Dec.) 5

R&D and Innovation A long history of innovation, from the first laser m achine for autom otive application in 1 9 7 9 to today’s record-breaking m achines Strong investm ents in R&D: 6 % of sales Continuous introduction of new products or product evolutions to keep the m achine range alw ays at the cutting edge of technology The w idest range of m odern, efficient, eco-friendly m achines for the sheet m etal processing 6

Products THE W I DEST PRODUCT RANGE I N LASER AND SHEET METAL MACHI NERY 2D laser 3D laser 3D laser cutting cutting welding laser punching bending drilling punching/ punching/ FMS laser shearing 7

Worldwide presence Hungary Sweden Budapest Poland Goteborg UK Krakow Finland Birm ingham Kauhava Russia Milton Keynes Czech republic Moskow Canada Prague Toronto Germany Munich Japan Frankfurt Osaka Belgium Gent France USA Paris Massachusetts China Minnesota Beijing I llinois Shanghai Spain Georgia W uhan Barcelona California New Jersey Connecticut Switzerland Zurich U.A.E Abu Dhabi Italy Manufacturing, sales, service Collegno ( TO) Cologna Veneta Sales, service Moncalieri ( TO) ( VR) Barone Fiesse ( BS) Canavese ( TO) Direct Presence in 1 8 Major Markets and distribution in about 6 0 countries

Agricultural & Construction Machinery, Trucks & Trailers 9 Energy Selected Customers Aerospace Autom otive

Selected Customers Forklifts & I ndustrial Miscellaneous Contract Machinery End Products Manufacturing HVAC & W hite Goods Electronics 10

11 AGENDA REORGANIZATION & RESTRUCTURING MARKET OVERVI EW COMPANY OVERVIEW FINANCIALS

Market overview Industry associations & researches Date Comment Market Association “Global machine tools consumption is forecast to fall by about 28% this Spring 2009 year. This is a much bigger decline than we were expecting six months ago.” “The Laser Macro Processing Index was down by –30.9% in quarter I / 2009 vs the previous quarter, and decreased by –44.5 vs quarter I / 2008. The total duration of the downturn depends on the macro 19/ 05/ 09 economic trend. For the macro economic recovery a variety of scenarios exists, ranging from a V-shape quick recovery, over W and U formations, to the worst case of an L-shape trend.” “CECIMO has assessed that the production of machine tools in CECIMO countries might decrease by 34% in 2009, in line with the 06/ 09 global forecast for the industry going back to the 2005 level.” “Demand expected to slip to 850 billion yen in FY2009 and FY2010, down 35% compared to FY 2008 (40% decline in domestic demand, 06/ 09 30% decline in export demand).” “During 2Q09 the order acquisition for machine tools decreased by 22/ 07/ 09 63.1% compared to 2Q08” “In the second quarter of 2009, orders plummeted once more by 65 05/ 08/ 09 per cent over against the previous year’s figures” “June U.S. manufacturing technology consumption totaled $135.85 10/ 08/ 09 million. This total was up 22.0% from May but down 69.2% from the total reported for June 2008. With a year-to-date total of $759.03 12 million, 2009 is down 70.1% compared with 2008.”

Market overview Competitors Company Date Newsflow “The Conzzeta Group’s machinery and systems engineering businesses 24/ 06/ 09 (Bystronic) are facing massive declines in incoming orders of up to 60% , as already reported in the interim report as of April 30, 2009… . The planned program of capacity adjustments will result in the loss of around 400 jobs (approx. 11% ).” 17/ 07/ 09 Bankruptcy filing “Net Sales totaled $76.6 million for the third quarter ended June 30, 22/ 07/ 09 2009, a 49% decrease from the comparable quarter of 2008. For the nine months ended June30, 2009 net sales totaled $259.1 million, a decrease of 38% from the comparable period in 2008” “Sales sunk by 23% to 1.66 billion Euros. TRUMPF expects orders 27/ 07/ 09 received to fall by 35% to 1.35 billion Euros. The company recorded a downturn in all regions of the world and in all of its divisions.” Net sales down 55% for the three months ended June 30, 2009. 05/ 08/ 09 Expected forecast sales for fiscal year ending March 31, 2009: -34% . 13

Market overview Listed Italian Industrials 50% SALES 1 H0 9 / 1 H0 8 40% 30% Finm eccanica 20% Basicnet Ansaldo 10% EBI T/ SALES 1 H0 9 Geox 0% - 25% - 20% - 15% - 10% - 5% 0% 5% 10% 15% 20% 25% I m a Poltrona - 10% Frau Piaggio Saes Elica - 20% Stm icroelectronics Getters Fiat I ndesit Datalogic I nterpum p Fidia Brem bo - 30% Cobra Gefran El-En Prim a - 40% I ndustrie Biesse - 50% Carraro - 60% Pininfarina - 70%

15 REORGANI ZATI ON & RESTRUCTURI NG AGENDA COMPANY OVERVIEW MARKET OVERVIEW FINANCIALS

Reorganization & Restructuring process LEGAL ENTI TI ES AND FACI LI TI ES ( 1 / 2 ) Company Actions Status Date PI SpA 1. Shut down R&D center in Bari and transfer Done Jun-09 key people to Torino In 2. PI SpA Closing of Prima Branch Office in Zurich Jun-10 progress 3. FP Oy Shut down Vilppula plant and relocation of Done Aug-09 activities to Kauhava and suppliers (outsourcing) 4. PE SpA Merger of Osai SpA in Prima Electronics Done Jan-09 Shut down of Osai service office in Bologna 5. In Oct-09 PE SpA and concentration in Milan and Padua progress In Dec-09 Transfer all activities (except Demo 6. FP Italia progress Center) from Fiesse to Cologna Veneta PNA Jun-09 7. Transfer of PLS division to PFP NA and Done focus of PNA on CVL and LDS divisions 8. PI GmbH Merger of FP GmbH into PI GmbH and In Jan-10 change name into PFP GmbH progress Jul-08 9. PFP France Transfer of Prima Branch Office to PFP Done France 16

Reorganization & Restructuring process LEGAL ENTI TI ES AND FACI LI TI ES ( 2 / 2 ) Company Actions Status Date Aug-09 PFP France 10. Relocation into a common facility Done Jan-09 11. PFP Iberica Transfer of Prima Branch Office to PFP Done Iberica PFP Iberica Feb-09 12. Relocation into a common facility Done Osai US Relocation into PNA facilities in Chicopee Done Aug-09 13. (MA) Osai GmbH Liquidation Done Jul-09 14. Liquidation of JV with Shenyang Machine Dec-09 15. SPLMC In Tool Co. progress 17

Reorganization & Restructuring process W ORKFORCE PERMANENT REDUCTI ONS Actions Company Status Date FTE 1. PI SpA Done Shut down of R&D center in Bari Jun-09 5 Temporary and interim contracts Apr-09 30 2. PI SpA Done not renewed 3. FP Oy Shut down of Vilppula plant Done Aug-09 40 Restructuring of Kauhava organization 4. FP Oy In progress Dec-09 70 Jul-09 20 5. PE SpA “Mobilità” (also in Osai) Done Oct-10 40 FP Italia 6. CIGS and “Mobilità” In progress PNA Jul-09 25 7. Lay-offs Done PFP NA Sep-09 14 8. Lay-offs Done 9. Subsidiaries Lay-offs TBD In progress Dec-09 in Europe TOTAL 2 4 4 + 18

Reorganization & Restructuring process ADDI TI ONAL W ORKFORCE TEMPORARY REDUCTI ONS Company Procedure In place since 1. PI SpA CIG Apr-09 2. FP Oy YT Jan-09 3. FP Italia CIGS Sep-09 PE SpA CIG/ CIGS May-09 4. Jan-09 5. PNA Working 4 days out of 5 Sep-09 6. PFP Iberica E.R.E. TBD 7. PI GmbH / Kurtz Arbeit FP GmbH PFP France TBD 7. Chômage technique 19

New product development & Market launch NEW ZAPHI RO R & D activities w ere not stopped during the crisis, but focused on m ore qualified projects, to be ready to seize new opportunities as soon as m arkets recover NEW E5 X 20