Biesse

Investor Presentation • Sep 4, 2019

COMPANY PRESENTATION

SEPTEMBER 4TH 2019 MILAN, INDUSTRIAL DAY

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.
• 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. 2

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

RESPECT

5

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

6

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 DIVISIONS

SITES

12

PRODUCTION

7

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

8

+300

DISTRIBUTORS

SELECTED

BUSINESS MODEL

PRODUCTS

01

Machines

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 Systems

solutions, from plant 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 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

Sales breakdown

CUSTOMERS(BY SEGMENT)

CUSTOMERS(BY SEGMENT)

CUSTOMER SALES

a wide and fragmented customer base with no risk of concentration

CUSTOMERS - MAIN REFERENCE MARKETS

% breakdown of Biesse machines sales by macro-sector

IH 2019 HIGHLIGHTS

orders intake -16.7% VS June 2018 backlog 225.4 Euro mln

net consolidated sales: 344.2 net financial position: -33.8with -26.1 Euro mln for IFRS 16

(IFRS 16 adopted since January 2019)

ebitda: 38.0 (incidence on sales 11.0%) with +3.1 Euro mln for IFRS 16ebit: 20.1 (incidence on sales 5.8%) before non recurring items net profit: 10.4 (incidenceon sales 3.0%)

€/mln

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 N.F.P. -25 Euro mln

2019 IH effects: EBITDA +3.1 Euro mln N.F.P. -26.1 Euro mln

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

BIESSE QUARTER BY QUARTER

Sales by quarters

Second quarter

First quarter

extract of the P&L – IH 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	I H 2 0 1 8	I H 2 0 1 9
l N t e s a e s 1 y ea r -	3 7 8. 4 2 % -1	4 2 7. 1 2. 3 % 1 +	5 1 3. 1 2 % 1. 5 +	6 1 8. 5 9. % 1 1 +	6 9 0. 1 % 1 1. 6 +	7 4 0. 2 3 % 7. +	3 5 6. 6	3 4 4. 2 % -3 5
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 %	1 5 0. 3 2. % 4 1	1 5 1. 0 3. 9 % 4
b L t a o r c o s u %	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 %	0 8 1 6. 2 9. 9 %	1 1 3. 1 3 2. 9 %
E B I T D A %	3 0. 3 8. 2 %	4 0. 3 3. 6 %	6 4. 1 1 2. % 4	8 7 5. 1 2. 3 %	8 9. 5 1 3. 0 %	9 2. 7 1 2. % 5	4 3. 5 2. 2 % 1	3 8. 0 0 % 1 1.
E B I T %	1 8. 1 4. 8 %	2 6. 5 6. 2 %	4 3. 8 8. 4 %	5 5. 1 8. 9 %	6 3. 6 9. 2 %	6 3. 8 8. 6 %	3 0. 3 8. 5 %	2 0. 1 * 5. 8 %
				*be for rrin e no n r ecu	item g s	t t a r a e x	3 5. 8 %	3 5. 5 %

CASHFLOW

l € / m n	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	I H 2 0 1 9
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 1 0. 9 %	5 3. 1 7 1 %	4. 3 2 % 1.
I t t n v e s m e n s % les t s ne a	-2 0. 8 4. 9 %	-2 5. 3 4. 8 %	-3 2. 1 5 0 %	-3 9. 2 8 % 5	-4 5. 0 % 6 1	-5 0. 4 * % 1 4 6	fro *in lu d ing € 2 6. 6 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. 5 4 1 %	2 1. 0 4 1 %	1 3. 7 2 2 %	3 6. 2 2 % 5	8. 1 % 1 1	4 6 1 -
d de ds iv i n	-4 8 ha 0.1 8 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 ha 0.3 6 p er s re	-1 3. 1 ha 0.4 8 p er s re	-1 3. 1 ha 0.4 8 p er s re
b Δ N D t t e e	1 2 7	1 1 2	3 9	2 6 4	5 0 -	5 9 2 * -

*the delta is calculated between € +25.4 (December 2018 NFP) and € -33.8 (June 2019 NFP)

22 If we normalize December 2018 with the estimate IFRS 16, the delta is between € +0.4 and € -33.8= € -34.2 If we compare December 2018 NFP € +25.4 with June 2019 NFP € -7.7 without IFRS 16 the delta is€ -33.1

O.N.W.C

	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	I H 2 0 1 8 (ag the les) ain IH st sa	I H 2 0 1 9 (ag the les) ain IH st sa
i i t n e n o r e s v l % t n e s a e s	2 3. 0 %	2 1. 5 %	2 1. 1 %	2 0. 8 %	2 2. 1 %	4 5. 6 %	5 4. 5 %
b l i r e c e v a e s les % t s ne a	1 8. 9 %	2 0. 3 %	2 0. 8 %	1 7. 3 %	1 7. 7 %	3 7. 7 %	3 5. 4 %
b l p a y a e s % l t n e s a e s	2 8. 8 %	2 9. % 5	3 % 1. 1	3 2. % 4	3 2. % 5	6 8. % 4	6 8. % 5
O. N. W C. l % t n e s a e s	5 6 1 3. 0 %	6 3 1 2. 2 %	6 7 1 0. 8 %	3 9 5. 6 %	5 3. 1 7. 2 %	5 3. 1 1 4. 9 %	7 3. 8 2 1. 4 %

GROUP ORDERSINTAKE& BACKLOG

ORDERS INTAKE IH 2019 VSIH 2018: -16.7%

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

GROUP PEOPLE DISTRIBUTION

l P e o p	d i e s	b i t r u	i t o n	( ) 1 ( it w	) ho le int im ut er p eo p
	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	I H 2 0 1 9
d P i t r o u c o n % o f al p le tot eop	2 0 1. 5 4 6 %	2 1. 6 5 4 5 %	1. 1 7 5 4 4 %	2 0 1. 1 4 2 %	3 3 1. 5 4 2 %	8 2 1. 4 4 1 %	9 1. 4 4 3 9 %	2 1, 6 1 3 8 %	1, 4 7 1 3 6 %
f Se ice & le A te rv r sa f al p le % o 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 %	0 0 1, 1 2 4 %	0 0 0 1, 2 5 %
R & D f al p le % o 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 1 9 1 3 %
les ke ing Sa & M t ar % o f al p le tot eop	3 6 1 1 3 %	3 6 4 1 3 %	3 5 1 1 3 %	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 2 7 1 8 %
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 4 0 8 %
I T A L Y f % o al p le tot eop	1. 6 5 6 6 1 %	1. 6 4 6 5 9 %	1. 5 4 7 5 7 %	0 1. 6 5 5 6 %	8 0 1. 7 5 6 %	2. 0 0 9 5 6 %	2. 1 7 6 5 6 %	2, 8 3 4 5 9 %	2 8 4 5 , 6 1 %
O U T S I D E I T A L Y % o f al p le 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 0 7 4 4 %	1, 7 4 4 4 1 %	1, 9 9 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 5 7 , 2 7

People distribution (2)

number of employees: (without interim people) IH 2019 vs FY 2018= -170 (-4%)

number interim people: IH 2018 = 243 FY 2018 = 253 IH 2019 = 233

PROFIT WARNING

NEW VSOLD

NEW VSOLD

•Brexit uncertainty (hard – soft exit)

• •European political turmoils & tensions
• • Lack of focused incentives and uncertain of a clear fiscal outlook
• •Trade War escalation (U.S.A. – China - Europe)
• • Currency (i.e. TRY-RUBLO) instability/depreciation vs Euro and USD decreasing the purchasing power

SHAREHOLDERS & B.O.D. STRUCTURE

Shareholders breakdown by ownership Board of Directors

€/MIL

(THE OLD ONE)

THREE YEARSPLAN REMIND

2018-2020

EBITDA

€/mln

-

%

COGS on Net Sales below 40%

• labour Cost on Net Sales less than 30%
• overheadon Net Sales less than 20%

VALUE ADDED

€/mln

-

%

value added

LABOUR COST

€/mln - %

Labour Cost margin 2018-2020 plan

NET RESULT

-

NET FINANCIAL POSITION

53.2

CASHFLOW

l € / m n	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 8 1	2 0 2 1 e
( ) h f l G C * r o s s a s o w % les t s ne a	3 8 9 0 %	4 6 8 9 %	4 7 % 7 4	7 4 1 0 9 %	5 3 1 % 7	9 6 7. 9 %
C a p e x les % t s ne a	-2 1 4 9 %	-2 5 4 9 %	-3 2 5 2 %	-3 9 5 7 %	-4 5 6 1 %	8 4 - % 5. 4
h f l N C t e a s o w les % t s ne a	1 7 4 1 %	2 1 4 1 %	1 5 2 2 %	3 5 5 2 %	8 1 1 %	2 1 2. 4 %
d d D i i e n s v	4 8 - h 0. 1 8 p e r s a r e	9 8 - h 0. 3 6 p e r s a r e	9 8 - h 0. 3 6 p e r s a r e	9 8 - h 0. 3 6 p e r s a r e	1 3 1 - h 0. 4 8 p e r s a r e	-1 4. 0 f n f ( ) 3 0 % i t p t o e ro e

(*) Gross Cashflow calculated: net profit + amortization + provisions +/- delta operative CCN +/- delta funds (taxes)

without IFRS16 effects

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 authowarehouse (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