Biesse

Investor Presentation • Oct 30, 2019

Forward-thinkingSolutions to leverage

Pesaro, October 30th– 4 p.m. phone conference call

A. Amurri - I.R. Managerwww.biessegroup.com

Biesse highlights IIIQ 2019

orders intake-16.5% VS September ²⁰¹⁸ backlog 206 euro mlnGroup 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%)

IFRS 16MAIN 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. 26-27 Euro mln (negative)

extract of the P&L – IIIQ 2019

€ /m ln	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	1 1. 1 5 -2 0 %
l d d d V a u e a e %	1 4 3. 5 3 7. 3 %	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 1 9. 3 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 8. 2 4 2 8. % 6	1 6. 6 7 2 8. 6 %	1 9 9. 1 2 8. 9 %	2 1 6 4. 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 %	0. 3 4 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 %	6 0. 9 1 1. 7 %	5 6. 0 1 1. 0 %
E B I T %	8. 1 1 4. 8 %	2 6. 5 6. 2 %	3. 8 4 8. 4 %	5 5. 1 8. 9 %	6 3. 6 9. 2 %	6 7. 7 9. 1 %	2. 4 5 8. 1 %	2 9. 4 * 5. 7 %
				*be for ring e non re cur	ite ms	t t ax ra e	% 3 5. 1	% 3 4. 1

CASHFLOW

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

*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= € -43.0If we compare December 2018 NFP € +25.4 with sept 2019 NFP -without IFRS 16- the delta is€ -41.1

Biesse highlights IIIQ 2019

Orders& Sales breakdown

ORDERSINTAKE & BACKLOG

without spare parts & services

years

Shareholders - B.o.D.

Shareholders breakdown by ownershipBoard of Directors

Financial Calendar

FINANCIAL CALENDAR

profit warning

PRESS RELEASE - THE PROFIT WARNING

Pesaro June ²¹st ²⁰¹⁹

As highlighted by the sector studies regarding the Biesse industries of reference (Acimall, VDMA, UCIMU) – surveysmoreover confirmed by the official and unofficial orders intake data stated by the main competitors of the Group, the first ⁵months 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 comparedto the same period ²⁰¹⁸ is amounting on average around -15% (with ^a peak of -19% communicated the last March by themain Biesse competitor in wood).

Despite the great Biesse performance during the LIGNA fair (Hannover, 27-31 May, more than ⁴⁰ mln. of Euro of signedorders, confirming our offer and sale organization excellence), the Group can't shirk this slowdown dynamics and the Boardof 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 toprotect 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 thewidespread political and economic instability pervading the markets; consequently there is an objective complexity to readthe demand for the three years plan 2019-2021.

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

WHY

• • Brexit uncertainty(elections-referendum)
• • European political turmoils(i.e. Italy)
• •Lack of focused incentives and a clear fiscal policy (Industry 4.0)
• •Trade War fate (U.S.A. - China - Europe)

•

• Hong Kong tensions(Chinese impacts)
• • Currency (i.e. turkish lira-rublo-renminbi) instability/weakness vs Euro (lower purchasing power)
• • Perception of an increasing volatility(lower consumers confidence)

3 YEARSPLAN VS PROFIT WARNING

COST REDUCTION INTENSIFICATION

sales dedicated push for stock machines

cost containment and reduction in overhead functions «not strategic»

reduction of external consulting

WORLD FURNITURE PRODUCTION

source: CSIL -Euroconstruct - Holzbauverband

LATEST EXPECTATIONS

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

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 informations contained in this Document.
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biessegroup.com

Alberto AmurriInvestor Relator Manager 0039 - ^07214391070039 - ^3351219556