Biesse

Investor Presentation • Oct 22, 2019

COMPANY PRESENTATION

STAR CONFERENCE LONDON 22-23 OCTOBER 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. Th ey 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.
• 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 MAKES HISTORY.

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

RESPECT

THE VISION

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, Diamut, HSD.

MAIN BUSINESS 4 12 DIVISIONS

PRODUCTION SITES

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.

39 SUBSIDIARIES AND REPRESENTATIVE OFFICES

+300

DISTRIBUTORS

SELECTED

WITH OUR PEOPLE

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.

EXCELLENCE

AN HISTORY OF GROWTH REVENUE 2009-2018

PROFIT

NET FINANCIAL POSITION CASH

BUSINESS MODEL & CUSTOMERS

BIESSE MODEL

Machines 01

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

We create engineered solutions, from plant design to production, implementation, installation and maintenance.

Systems 02 We design, manufacture Mechatronics 03

and deliver high-tech mechanical and electronic components for machinery INDUSTRY 4.0 ready.

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. Software 04 06

Service 05

05 Through 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.

05 We have developed our 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

Advanced Material, Automotive And Aerospace Frames (doors, windows) Office Furniture Glass Structural Woods Stone / Marble

Furnishing

CUSTOMER BASE

CUSTOMERS (SELECTION BY SEGMENT)

CUSTOMERS (SELECTION BY SEGMENT)

MARKET SHARES & STRATEGY

CORE SEGMENTS MARKET SHARES 2018

we operate.

BIESSE ESTIMATES

NEW SEGMENTS MARKET SHARE 2018

BIESSE ESTIMATES

STRUCTURAL WOOD

Our competitors are mainly located in Germany and in Italy. The most important are Hundegger (the Market Leader), HOMAG and Weinmann.

METAL (MECHATRONICS)

Our main competitors are KESSLER. IBAG. GMN. WEISS (Siemens). FISHER and STEPTEC.

25

Highly fragmented market, our main competitors are Geiss, Belotti CMS Industrie, Breton, Mecanumeric, and Multicam.

OUR STRATEGY

OUR STRATEGY

ORDERS & SALES BREAKDOWN

ORDERS INTAKE & BACKLOG

ORDERS INTAKE: 9 MONTHS. 2019 VS 9 MONTHS ²⁰¹⁸ = -16.5%

without spare parts & services

SALES BREAKDOWN

SALES BREAKDOWN

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 compared 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 demand will 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 (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 YEARS PLAN VS PROFIT WARNING

LATEST EXPECTATIONS

	2018	IH2019	FY2019 e
net sales	740.2 +7.3%	344 2 3 5% -	695-705 range
ebitda	92.7 12.5%	38 0 11 0%	70-75 range
ebit*	67.7 9.1%	20 1 5 8%	36-41 range

*before non recurring items

GROUP PEOPLE DISTRIBUTION

PEOPLE DISTRIBUTION

39 (without interim people) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Sept 2019 Production % of total people 1.250 46% 1.265 45% 1.175 44% 1.201 42% 1.335 42% 1.482 41% 1.494 39% 1,621 38% 1,441 36% Service & After sale % of total people 577 21% 574 21% 613 22% 628 22% 690 22% 803 22% 894 23% 1,001 24% 1,000 25% R&D % of total people 316 12% 338 12% 321 12% 361 13% 383 13% 436 12% 479 12.5% 551 13% 521 13% Sales & Marketing % of total people 361 13% 364 13% 351 13% 439 15% 495 15% 587 16% 641 17% 715 17% 708 17.7% G & A % of total people 233 9% 242 9% 235 9% 252 9% 273 9% 310 8.5% 338 8.8% 339 8% 332 8.3% ITALY % of total people 1.656 61% 1.646 59% 1.547 57% 1.605 56% 1.780 56% 2.009 56% 2.176 56% 2,483 59% 2,437 61% OUTSIDE ITALY % of total people 1.081 39% 1.136 41% 1.148 43% 1.276 44% 1.396 44% 1.609 44% 1.670 44% 1,744 41% 1,565 39% TOTAL 2,737 2,782 2,695 2,881 3,176 3,618 3,846 4,227 4,002 (1)

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

CONSENSUS & MULTIPLES

CONSENSUS

consensus web								2019e - 3Y business plan							multiples
	2015	2016	2017	2018	2019e	2020e	2021e	2015	2016	2017	2018	2019e		0.4	SALES 2019e
NET SALES	519.1	618.5	690.1	740.2	686.0	701.0	722.0	519.1 NET SALES	618.5	690.1	740.2	785.0		4.2	EBIT 2019e
delta%	21.5%	19.1%	11.6%	7.3%	-7.3%	2.2%	3.0%	21.5% delta%	19.1%	11.6%	7.3%	6.1%	6.0%	2.9	EBITDA 2019e
EBITDA	64.1	75.8	89.5	92.7	64.2	70.0	76.5	64.1 EBITDA	75.8	89.5	92.7	98.9	7.3%
EBITDA %	12.4%	12.3%	13.0%	12.5%	9.4%	10.0%	10.6%	12.4% EBITDA %	12.3%	13.0%	12.5%	12.6%
EBIT	43.7	55.1	63.6	63.8	33.5	38.2	42.8	43.7 EBIT	55.1	63.6	63.8	69.3	7.7%
EBIT %	8.4%	8.9%	9.2%	8.6%	4.9%	5.4%	5.9%	EBIT % 8.4%	8.9%	9.2%	8.6%	8.8%
Net result	21.1	29.5	42.8	43.8	20.5	21.7	26.1	21.1 Net result	29.5	42.8	43.8	46.0	5.0%
net result %	4.1%	4.8%	6.2%	5.9%	3.0%	3.1%	3.6%	net result % 4.1%	4.8%	6.2%	5.9%	5.9%

consensus Bloomberg 2019e - profit warning multiples

8.3 519.1 618.5 690.1 740.2 688.0 705.7 718.5 519.1 618.5 690.1 740.2 690.0 NET SALES 4.5 21.5% 19.1% 11.6% 7.3% -7.0% 2.6% 1.8% 21.5% 19.1% 11.6% 7.3% -6.8% delta%	SALES 2019e
	EBIT 2019e
	EBITDA 2019e
64.1 75.8 89.5 92.7 64.1 75.8 89.5 92.7 64.8 71.0 77.0 65.0 EBITDA

market cap

	2015	2016 2017	2018	2019e	2020e	2021e	2015	2016	2017	2018	2019e	0.4	SALES 2019e
NET SALES	519.1	618.5 690.1	740.2	688.0	705.7	718.5	519.1 NET SALES	618.5	690.1	740.2	690.0	8.3	EBIT 2019e
delta%	21.5%	19.1% 11.6%	7.3%	-7.0%	2.6%	1.8%	21.5% delta%	19.1%	11.6%	7.3%	-6.8%	4.5	EBITDA 2019e
EBITDA	64.1	75.8 89.5	92.7	64.8	71.0	77.0	64.1 EBITDA	75.8	89.5	92.7	65.0
EBITDA %	12.4%	12.3% 13.0%	12.5%	9.4%	10.1%	10.7%	12.4% EBITDA %	12.3%	13.0%	12.5%	9.4%
EBIT	43.7	55.1 63.6	63.8	34.3	39.6	44.3	55.1 EBIT	63.6	63.8	69.3	35.0
EBIT %	8.4%	8.9% 9.2%	8.6%	5.0%	5.6%	6.2%	10.6% EBIT %	10.3%	9.2%	9.4%	5.1%

MULTIPLES COMPARISON

Companies	EV/EBIT 2019	EV/EBITDA 2019
Biesse S.p.A.	9.6x	5.1x
average	12.8x	7.9x
min	9.2x	5.1x
max	18.4x	11.3x
Interpump Group S.p.A.	14.2x	11.3x
Brembo S.p.A.	11.1x	6.9x
Prima Industrie S.p.A.	12.7x	6.7x
IMA S.p.A.	13.5x	10.3x
Duerr AG	9.2x	6.6x
Elica S.p.A.	13.4x	5.7x
Krones AG	18.4x	8.7x
KUKA AG	---	6.9x
Guangzhou KDT Machinery LTD	11.0x	9.6x
Nanxing Machinery LTD	---	---

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 - president)

Roberto Selci (C.E.O.)

Stefano Porcellini (Group Director)

Alessandra Parpajola

Silvia Vanini

Giovanni Chiura (indipendent)

Federica Palazzi (indipendent)

Source: Consob

FINANCIAL CALENDAR

FINANCIAL CALENDAR

THREE YEARS PLAN

(EXTRACT FEBRUARY 2019)

CAGR 2018-2020 9.5%

EBITDA

2018-2020

-

VALUE ADDED

Value Added margin 2018-2020 plan

LABOUR COST

EBIT

10.2% EBIT margin 2018-2020 plan

NET RESULT

€/mln

-

%

Net Result Net Result %

5656

NET FINANCIAL POSITION

in the previous

plan

CAPEX

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