Biesse

Investor Presentation • Nov 22, 2019

COMPANY PRESENTATION

PARIS, 22 NOVEMBER 2019

Disclaimer

• This presentation has been prepared independently by Biesse S.p.A. and can be used only during meetings with investors and financial analysts. It's solely for information purposes and it may contain statements regarding future financial performances and Company's expectations
• Biesse is not responsible for the content processed by third parties and content indicated in this Document. No liability is accepted by or on behalf of Biesse for any errors, omissions or inaccuracies contained in this presentation.
• Any forward looking statements are not guarantees of future performances and is related only of the date of this document. They are based on the Group's current state of knowledge, future expectations and projections about the future events. By their nature they are subject to inherent risks and uncertainties.
• Further information concerning the Group results, including factors that could materially affect the Company itself (i.e. IFRS) will be included and detailed in the Financial Statement of the Group.
• For further details on the Biesse S.p.A. reference should be made to publicly available information. including the Quarterly Reports, the Half Annual Report, the Annual Reports and the Three Years Business Plan.
• Any reference to past performance of the Biesse S.p.A. shall not be taken as an indication of future performance.
• This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
• No action should be taken or omitted based on the informations contained in this Document. Biesse accepts no liability for the results of any action taken on the basis of the informationscontained in this Document.
• By attending the presentation you agree to be bound by the foregoing terms.
• The User is not granted any license or right of use and therefore is not allowed to record such content – in whole or in part- on any type of media, reproduce, copy, publish and use them for any purpose without prior written permission.

IT'S THE FUTURE THAT MAKESHISTORY

WE HAVE BEEN DESIGNING INNOVATION FOR FIFTY YEARS, DRIVEN BY AN INCREDIBLE ENGINE, POWERED BY PEOPLE, PASSION AND PRECISION.

OUR IDENTITY

OUR VALUES

Biesse Group is a global leader founded in Pesaro in 1969 by Giancarlo Selci. listed on the Borsa Italiana since 2001 – STAR segment. The Group has a strong Italian identity and strongly believe in:

INNOVATION

RELIABILITY

THE VISION

8

Biesse Group's vision is embodied by the word THINKFORWARD:

a stimulus to LOOK AHEAD and ANTICIPATE THE FUTURE setting new standards to drive TECHNOLOGICAL INNOVATION and DIGITALtransformation.

ONE INDUSTRIAL GROUP

We manufacture technology for processing wood, glass, stone, advanced materials and metal through specialised business units and 12 manufacturing sites in Italy and worldwide. We operate worldwide with our own key brands: Biesse, Intermac, Movetro, Montresor, Uniteam, Bre.Ma, Viet, Diamut, HSD.

MAIN BUSINESS DIVISIONS

SITES

12

PRODUCTION

9

ALL OVER THE WORLD

We support our colleagues everywhere in the world, using the most advanced management, sales and support system. Our global network enables us to be always close to our customers.

SUBSIDIARIES AND REPRESENTATIVE OFFICES

39

10

+300

DISTRIBUTORS

SELECTED

WITH OURPEOPLE

> 4,000

We acknowledge that Peopole are essential to our development, because the ability to innovate and pursue excellence in the realisation of products is the consequence of the passion and dedication of all those are part of the Biesse family.

13 Consolidated Net Sales (€/mln) 1969 1980 2001 2009 Mechatronics Housing bSoft (software) Glass StoneWood 353 466 268 378 519 618 690 admitted to the STAR segment (Milan Stock Exchange) June 2001 2018 Metal Plastic & Advanced

2009-2018

Materials

740

REVENUE

Group

PROFIT

14

CASH

BUSINESS MODEL & MAIN CUSTOMERS

BIESSE MODEL

Machines01

We design, manufacture and distribute a comprehensive range of machinery and technologies for processing wood, glass, stone, metal and advanced materials

02

We create engineered solutions, from plant Systems

design to production, implementation, installation and maintenance

03

Mechatronics

We design, manufacture and deliver high-tech mechanical and electronic components for machinery INDUSTRY 4.0 ready.

04

Tooling

We manufacture tools for the processing of glass, stone and ceramic. Its synergy with Intermac has enabled it to develop a range of tools, which in terms of reliability, have become a benchmark in the market.

Service05

05Through dedicated personnel, we provide professional pre-sale consulting services, and continuous after sales assistance to ensure the correct installation and startup of machinery, software and Systems.

06

Software

05We have developed our own software solutions by closely observing the work carried out by the customer every day, with simple interfaces, designed to make everyday use of the machine practical.

FOOTPRINT

CUSTOMERS - MAIN REFERENCE MARKETS

% breakdown of Biesse machines sales by macro-sector

CUSTOMERS BASE

CUSTOMERS

(SELECTION BY SEGMENT)

CUSTOMERS

(SELECTION BY SEGMENT)

MARKET SHARES & STRATEGY

CORE SEGMENTS MARKET SHARES 2018BIESSE ESTIMATES

we operate.

operate. 24

NEW SEGMENTS MARKET SHARE 2018

important are Hundegger (the Market Leader), HOMAGand Weinmann.

BIESSE ESTIMATES

(Siemens). FISHER and STEPTEC.

Multicam.

OUR STRATEGY

Truly

OUR STRATEGY

ORDERS & SALES BREAKDOWN

ORDERSINTAKE& BACKLOG

ORDERS INTAKE:

without spare parts & services

SALES BREAKDOWN

IIIQ 2019

Western Europe (Italy included)Eastern Europe North AmericaAsiaRest of the World

Western Europe (Italy included)

Eastern Europe

North America

Asia

31

Rest of the World

IIIQ2019 RECAP

Biesse highlights IIIQ 2019

orders intake -16.5% VS September 2018 backlog 206 euro mln Group people nr. 4,002 (without temporary people)

net consolidated sales: 511.1 net financial position: -42.6 with -26.9 Euro mln for IFRS 16 (IFRS 16 adopted since January 2019)

€/mln

ebitda: 56.0 (incidence on sales 11.0%) with +4.7 Euro mln for IFRS 16 ebit: 29.4(incidence on sales 5.7%) before non recurring items for 2.4 mln net profit: 14.8 (incidenceon sales 2.9%)

extract of the P&L – IIIQ 2019

ln € /m	F Y 2 0 1 3	F Y 2 0 1 4	F Y 2 0 1 5	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	2 0 1 8 t s e p	2 0 1 9 t s e p
l N t e s a e s 1 y ea r -	3 7 8. 4 -1 2 %	4 2 7. 1 1 2. 3 % +	5 1 3. 1 2 1. 5 % +	6 1 8. 5 1 9. 1 % +	6 9 0. 1 1 1. 6 % +	7 4 0. 2 7. 3 % +	5 2 1. 8	5 1 1. 1 -2 0 %
l d d d V a e a e u %	1 4 3. 5 3 3 % 7.	1 6 3. 1 3 3. % 6	2 1 2. 4 4 0. 3 %	2 5 2. 4 4 0. 8 %	2 8 8. 6 4 1. 8 %	3 0 7. 2 4 1. 5 %	2 1 7. 6 4 1. 7 %	2 9. 3 1 4 2. 9 %
b L t a o u r c o s %	1 1 2. 7 2 3. 8 %	1 2 8. 2 3 0. 0 %	1 4 8. 2 2 8. 6 %	1 7 6. 6 2 8. % 6	1 9 9. 1 2 8. 9 %	2 1 4. 6 2 9. 0 %	1 5 6. 7 3 0. 0 %	1 6 3. 3 3 1. 9 %
E B I T D A %	3 0. 3 8. 2 %	4 0. 3 3. 6 %	6 4. 1 1 2. 4 %	7 5. 8 1 2. 3 %	8 9. 5 1 3. 0 %	9 2. 7 1 2. 5 %	0. 9 6 1 1. 7 %	0 5 6. 1 1. 0 %
E B I T %	1 8. 1 4. 8 %	2 6. 5 6. 2 %	4 3. 8 8. 4 %	5 5. 1 8. 9 %	3. 6 6 9. 2 %	6 7. 7 9. 1 %	4 2. 5 8. % 1	2 9. 4 * % 5. 7 3 4
				for *be rrin e no n r ecu	item g s	t t a x r a e	3 5. 1 %	3 4. 1 %

CASHFLOW

l € / m n	F Y 2 0 1 4	F Y 2 0 1 5	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	S 2 0 9 1 t e p ( ) h 9 t m o n s
h f l G C r o s s a s o w les % t s ne a	3 8. 3 9. 0 %	4 6. 3 8. 9 %	4 5. 8 % 7 4	7 5. 4 0. 9 % 1	5 3. 1 % 7 1	6. 5 1. 2 %
I t t n e s m e n s v les % t s ne a	-2 0. 9 9 % 4.	-2 5. 1 8 % 4.	-3 2. 1 5 0 %	-3 9. 2 5 8 %	-4 5. 0 6 1 %	-6 1. 4 * 1 2 0 %	lu d fro *in ing € 2 6. 9 I F R S 1 6 c m
h f l N C t e a s o w % les t s ne a	1 7. 4 % 4 1	2 1. 2 % 4 1	3. 1 7 2 2 %	3 2 6. 5 2 %	8. 1 1 1 %	5 4 9 -
d de ds iv i n	8 -4 0.1 8 ha pe r s re	-9 8 ha 0.3 6 p er s re	-9 8 ha 0.3 6 p er s re	-9 8 0.3 6 p ha er s re	3. -1 1 0.4 8 p ha er s re	-1 3. 1 ha 0.4 8 p er s re
b Δ N D t t e e	1 2 6	1 1 4	3 9	2 6 4	5 0 -	8 0 * 6 -

*the delta is calculated between €+25.4 (December 2018 NFP) and €-42.6 (september 2019 NFP) If we normalize December 2018 with the estimate IFRS 16, the delta is between € +0.4 and € -42.6= € -43.0 If we compare December 2018 NFP € +25.4 with sept 2019 NFP -without IFRS 16- the delta is€ -41.1

36

WORKINGCAPITAL TREND

PROFIT WARNING & ESTIMATES

PRESS RELEASE - THE PROFIT WARNING

Pesaro June 21st 2019

As highlighted by the sector studies regarding the Biesse industries of reference (Acimall, VDMA, UCIMU) – surveys moreover confirmed by the official and unofficial orders intake data stated by the main competitors of the Group, the first 5 months of the 2019 have seen a considerable coolness of the demand, after a positive cycle lasted 4 years (2015-2018). In particular, for this wide sample basket of markets/companies, the negative delta between the 2019 new orders compare d to the same period 2018 is amounting on average around -15% (with a peak of -19% communicated the last March by the main Biesse competitor in wood).

Despite the great Biesse performance during the LIGNA fair (Hannover, 27-31 May, more than 40 mln. of Euro of signed orders, confirming our offer and sale organization excellence), the Group can't shirk this slowdown dynamics and the Board of Directors intends prudently rectify the guidance for the FY 2019 lowering the forecast for consolidated sales and margins. Given that the actual demand volatility is making extremely aleatory any estimate, the consolidated sales are - at present - expected to be in a range of 680-690 mln of Euro and the EBITDA in a range of 62-65 mln of Euro. The Group is anyway forecasting for the current year, despite the revision above mentioned, a positive Net Financial Position (before any IFRS 16 impact). For what is concerning the levels of the projected marginality for the FY 2019, it is good to reiterate that the Group will is to protect the investments regarding organization, products and markets in which it operates, being sure that this is the correct path to re-confirm our world leadership as soon as the demandwill start again.

In the end, the consensus regarding the world economy trend for the next 12-18 months remains uncertain due to the widespread political and economic instability pervading the markets; consequently there is an objective complexity to read the demand for the three years plan 2019-2021.

So, with this state of the things, we can only assume a shift to the FY 2022 of the targets originally fixed for the FY 2021.

WHY

•Brexit uncertainty

•

•

•

• •European political turmoils
• Lack of focused incentives and a clear fiscal policy (Industry 4.0)
• Trade War fate (U.S.A. - China - Europe)
• •Hong Kong tensions
• •Currency (i.e. turkish lira-rublo-renminbi) instability/weakness vs Euro (lower purchasing power)
• Perception of an increasing volatility(lower consumers confidence)

LATEST EXPECTATIONS

	2 0 1 8	0 I H 2 1 9	F Y 2 0 1 9 e
l t n e s a e s	7 4 0 2 3 % 7 +	3 4 4. 2 3. 5 % -	6 9 0 5 7 5 r a n g e -
b d i t e a	9 2 7 1 2 5 %	3 8. 0 0 % 1 1.	0 7 7 5 r a n g e -

GROUP PEOPLE DISTRIBUTION

(without interim people) PEOPLE DISTRIBUTION (1)

	F Y 2 0 1 1	F Y 2 0 1 2	F Y 2 0 1 3	F Y 2 0 1 4	F Y 2 0 1 5	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	S 2 0 9 1 t e p
d P i t r o u c o n f al p le % o tot eop	1. 2 5 0 4 6 %	1. 2 6 5 4 5 %	1. 1 7 5 4 4 %	1. 2 0 1 4 2 %	1. 3 3 5 4 2 %	1. 4 8 2 4 1 %	1. 4 9 4 3 9 %	1, 6 2 1 3 8 %	1, 4 4 1 3 6 %
f le Se ice & A te rv r sa % o f al p le tot eop	5 7 7 2 1 %	5 7 4 2 1 %	6 1 3 2 2 %	6 2 8 2 2 %	6 9 0 2 2 %	8 0 3 2 2 %	8 9 4 2 3 %	1, 0 0 1 2 4 %	1, 0 0 0 2 5 %
R & D f % o al p le tot eop	3 1 6 1 2 %	3 3 8 1 2 %	3 2 1 1 2 %	3 6 1 1 3 %	3 8 3 1 3 %	4 3 6 1 2 %	4 7 9 1 2. 5 %	5 5 1 1 3 %	5 2 1 1 3 %
Sa les & ke ing M t ar f al p le % o tot eop	3 6 1 3 % 1	3 6 4 3 % 1	3 5 1 3 % 1	4 3 9 % 1 5	4 9 5 % 1 5	5 8 7 % 1 6	6 4 1 % 1 7	7 1 5 % 1 7	7 0 8 % 1 7. 7
G A & % o f al p le tot eop	2 3 3 9 %	2 4 2 9 %	2 3 5 9 %	2 5 2 9 %	2 7 3 9 %	3 1 0 8. 5 %	3 3 8 8. 8 %	3 3 9 8 %	3 3 2 8. 3 %
I T A L Y f al p le % o tot eop	1. 6 5 6 6 1 %	1. 6 4 6 5 9 %	1. 5 4 7 5 7 %	1. 6 0 5 5 6 %	1. 7 8 0 5 6 %	2. 0 0 9 5 6 %	2. 1 7 6 5 6 %	2, 4 8 3 5 9 %	2 4 3 7 , 6 1 %
O S U T I D E I T A L Y f al p le % o tot eop	1. 0 8 1 3 9 %	1. 1 3 6 4 1 %	1. 1 4 8 4 3 %	1. 2 7 6 4 4 %	1. 3 9 6 4 4 %	1. 6 0 9 % 4 4	1. 6 7 0 % 4 4	1, 7 4 4 % 4 1	1, 5 6 5 3 9 %
O T T A L	2 7 3 7 ,	2 7 8 2 ,	2 6 9 5 ,	2 8 8 1 ,	3 1 7 6 ,	3 6 1 8 ,	3 8 4 6 ,	4 2 2 7 ,	4 0 0 2 ,

PEOPLE DISTRIBUTION (2)

number of employees: (without interim people)

Sept 2019 vs Sept 2018= -127 (-3.1%) Sept 2019 vs Dec 2018= -225 (-5.3%)

number of interim people: Sep 2018 = 262 Dec 2018 = 253 Sep 2019 = 206

IFRS 16 DEFINITION AND IMPACTS

IFRS 16 MAIN IMPACTS

"…..IFRS 16 is an International Financial Reporting Standard (IFRS) providing guidance on accounting for leases. IFRS 16 was issued in January 2016 and will be effective for most companies that report under IFRS in 2019. Upon becoming effective, it will replace the earlier leasing standard, IAS 17. ….The new standard will provide much-needed transparency on companies' lease assets and liabilities, meaning that off balance sheet lease financing is no longer lurking in the shadows. It will also improve comparability between companies that lease and those that borrow to buy……"

FY 2018 effects: EBITDA 6.9 Euro mln (positive) N.F.P. 25 Euro mln (negative)

======================

FY 2019e effects: EBITDA 6.5-7.0 Euro mln (positive)N.F.P. 25-26 Euro mln (negative)

SHAREHOLDERS

BREAKDOWN BY OWNERSHIP

B.O.D.

STRUCTURE

€/MIL SHAREHOLDERS BREAKDOWN BY OWNERSHIP BOARD OF DIRECTORS

Biesse B.o.D.: Giancarlo Selci (founder Roberto Selci (C.E.O.)

Stefano Porcellini (group director)

Alessandra Parpajola

Silvia Vanini

Giovanni Chiura(indipendent)

Federica Palazzi (indipendent)

Elisabetta Righini (indipendent)

Source: Consob -

president)

FINANCIAL CALENDAR

FINANCIAL CALENDAR

THREE YEARS PLAN REMIND (FINANCIAL EXTRACT - FEBRUARY 2019)

CAPEX

€/mln

2019e tangible: € 32.9mln intangible: € 18mln

main investments items:

• Mechatronics – HSD takeover of the Bi.Fin srl leasing (existing site in Gradara)
• Wood – stand alone machines vertical autho-warehouse (traslo)
• Subsidiary Biesse America campus
• ComponentsCosmec working centers
• I.T. Service CRM – product configurator – I.I.o.T.
• R&D (4% of the net sales)

Alberto Amurri Investor Relator Manager

0039 - 0721439107 0039 - 3351219556