STAR CONFERENCE 2015 S CON NC 0 5 Milan, March 24 th , 2015 Our - PowerPoint PPT Presentation

STAR CONFERENCE 2015 S CON NC 0 5 Milan, March 24 th , 2015

Our Group: business sectors Machinery Division Electronics & laser technologies Laser and sheet metal fabrication machinery: Industrial electronics (power • 2D and 3D laser cutting, and control electronics, welding and drilling welding and drilling, numerical controls). i l l ) • punching, High power CO 2 and Nd:Y AG • combined punching/ laser or laser sources for industrial laser sources for industrial punching/ shearing, applications. • bending, • automation and FMS • automation and FMS. Turnover 2014 Turnover 2014 Euro 312 million Euro 53 million

Industrial footprint Kauhava – Finland Champlin (MN) – USA Collegno (TO) – Italy Punching & Combi Punching & Combi systems automation Laserdyne and 3D laser systems 2D – 3D Laser systems Cologna V.ta (VR) – g ( ) Italy Panel benders & Suzhou - China Moncalieri (TO) –Italy press-brakes Chicopee (MA) –USA Barone C.se (TO) –Italy ( ) y 2D laser systems & punching for Chinese & Asian market Electronics: R&D lab Electronics: R&D lab Convergent laser l and board processing sources Electronics: OSAI = Prima Power plant and DOTS products = Prima Electro plant assembly & testing

S ales & service footprint: EMEA RECENT EVENTS Tech Days – Kauhava (Finland) March 2014 What’s Next - Collegno (Italy) October 2014 Euroblech Euroblech - Hannover (Germany) Hannover (Germany) November 2014 = subsidiary = branch office = distributor

S ales & service footprint: AMERICAS RECENT EVENTS Fabtech –Atlanta (USA) November 2014 Prima Power North America – Showroom = subsidiary = branch office = distributor

S ales & service footprint: AP AC RECENT EVENTS MWCS – Shanghai (China) November 2014 2D Tech Center in Shanghai = subsidiary = branch office = distributor = in progress i g

Our People 1,579 Employees worldwide Breakdown Breakdown by by function function at 31/12/2014 at 31/12/2014 G&A R&D Production � & � 9% 14% 14% I Installation t ll ti 37% Service � & � Sales � & � Spare � parts Marketing 29% 29% 11% Breakdown Breakdown by by geographic geographic area at 31/12/2014 area at 31/12/2014 ITALY ITALY 46% EUROPE 31% NORTH � AMERICA AMERICA ROW ROW 15% 8%

A history of growth y g Revenues 400 €/ mio 367 349 350 336 336 350 310 CAGR 1999-2014: 12.5% 300 250 232 250 200 200 176 176 148 150 112 111 101 97 95 90 100 60 50 50 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1999 2001 2005 2005 • IPO on Italian • • 2009-2013 S tock Market Acquisition 2008 2014 Acquisition • Reorganization of • First JV in • Acquisition • New manufacturing of of Matra the commercial China of Finnish plant in China (Prima Laserdyne distributor network in European Group FINN- Power S uzhou) in the US in Germany countries (leadership POWER (size • Third JV • Factory y in i d doubled) bl d) in China rationalization aerospace • Establishment of new 2007 2000 market) commercial • Acquisition of • Acquisition of • JV in subsidiaries in OS AI (very well- Convergent Japan emerging markets known brand in Energy in the US 2003 (Brazil, India, Russia, the field of (internalization (internalization • S • S econd JV econd JV Turkey, UAE, CNCs) of laser source) in China Australia, Mexico, Korea)

Economic trends Revenues €/ mio 477 477 500 500 427 450 383 400 350 367 349 336 350 310 300 300 250 250 232 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* 70 EBITDA EBITDA 61,6 61 6 €/ mio €/ mio 60 49,7 50 41,6 40 33,8 31,8 29 0 29,0 30 6 30,6 30 22,4 20 10,4 6,2 10 0 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* * = according to analysts' consensus :

Net financial position trend Net debt 180 161,6 160 150,1 141 3 141,3 136,4 140 126,3 120 100 0 100,0 100 92,1 88,9 81,5 80 69,2 60 40 20 20 0 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* * = according to analysts' consensus :

New financing & reimbursement planning FINPOLAR FINPOLAR 4 feb 15 4-feb-15 4-feb-16 4 feb 16 Dec - 15 Dec 15 2016 2016 2017 2017 2018 2018 2019 2020 2019 2020 2021 2021 Feb - 22 Feb 22 TOTAL TOTAL TRANCHE A Amortizing -4,4 TRANCHE B Bullet -64,1 40 40,0 Bond (bullet) 3,5 6,6 6,6 6,6 6,6 6,6 3,5 40,0 It CD Amortizing 20 TRANCHE D Overdraft -20,0 20,0 It CD Revolving TOTAL -4,4 -84,1 3,5 6,6 6,6 6,6 26,6 6,6 3,5 40,0 100,0 Paid cash Increase in sources 15.9 M€ As of today fully repaid y y p by means of the new financial sources

Reference markets AUTOMOTIVE AEROSPACE & ENERGY YELLOW GOODS & TRAILERS ELECTRICAL CABINETS/ TELLING & VENDING MACHINES WHITE GOODS & HVAC

Reference markets Revenues at 31/12/14 Vending & Distributor Subcontractors equipments CONVERGENT � After Sales 2% & (laser � sources) Miscellaneous 24% 26% 26% 17% 17% DOTS DOTS � Electrical Automotive 41% equipments 14% 6% Building & Aerospace OSAI � (CNCs) Housing 4% Industrial Industrial 33% equipments** i ** Machinery* 18% 15% *= including agricultural, construction & industrial machinery ** = including HVAC, elevators, furniture & home appliances

Our Key S uccess Factors A A comprehensive product range h i d t Internal development and manufacturing of technological components p g g p High commitment to innovation (R&D 5.5% of revenues) A global sales network Dedicated after sales services Brand awareness Social & environmental responsibility Social & environmental responsibility

Market trends: machine tool market – by Oxford Economics (Autumn 2014) by Oxford Economics (Autumn 2014) Machine Tool Consumption - % change Machine Tool Consumption % change (local currency) 2013 2014 2015 2016 2017 2018 Europe 4.2 3.9 3.4 5.9 5.8 4.6 Americas -1.9 -1.1 4.8 5.2 3.8 2.6 Asia -17.0 -2.0 9.0 8.2 6.1 5.4 WORLD -10.6 -0.6 7.3 7.3 5.8 4.9 -3.9 4.4 World average growth rate 2015-2018: approx. 6.3%

Market trends: laser systems market – by Optech Consulting (January 2014) by Optech Consulting (January 2014) CAGR 2013 -2020: 7.8% (nominal growth rate) Global market and forecast for high power laser systems by application (by value) by application (by value)

Market trends: Prima outlook - assumptions INERTIAL GROWTH LEAD BY THE MARKET: • Assumption of the external researches’ expectations for the coming years, which indicate a growth by: • 6.3%average for machine tool world market (2015-2018) 6 3% f hi t l ld k t (2015 2018) • 7.8%cagr (2013-2020) for high power laser systems NEW GROWTH ENGINES : • Additional revenues & profitability coming from the new manufacturing unit in China (Prima Power Suzhou) • Exploitation of the recently established subsidiaries in high growth markets (Brazil, Turkey Russia Mexico India Australia) Turkey, Russia, Mexico, India, Australia) • Establishment of a new commercial subsidiary in S outh East Asia • S ignificant pipeline of new products g p p p

Analysts’ consensus 2015 2016 2017 B. IMI B. Akros UBI banca consensus B. IMI B. Akros UBI banca consensus B. IMI B. Akros UBI banca consensus REVENUES 385,0 384,0 380,9 383,3 435,0 421,0 425,5 427,2 478,6 na 475,5 477,1 EBITDA 42,1 41,0 41,6 41,6 50,2 48,0 50,9 49,7 58,1 na 65,0 61,6 NET RESULT 15,2 12,0 14,3 13,8 19,7 16,0 20,6 18,8 23,5 na 30,2 26,9 NFP 90,4 90,0 86,4 88,9 82,7 82,0 79,8 81,5 71,1 na 67,3 69,2 CAGR 2015-2017 consensus: 11.6%