Biesse

Investor Presentation • Oct 23, 2018

COMPANY PRESENTATION

OCTOBER 2018

Disclaimer

• This presentation has been prepared by Biesse S.p.A. for information purposes only and for use in presentations of the Group's results and strategies.
• 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.
• Statements contained in this presentation, particularly the ones regarding any Biesse S.p.A. possible or assumed future performance, (business plan) are or may be forward looking statements and in this respect they involve some risks and uncertainties.
• 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.
• By attending the presentation you agree to be bound by the foregoing terms.

Biesse Group is a global leader in the technology for processing wood, glass, stone, advanced materials and metal. Founded in Pesaro in 1969 by Giancarlo Selci, the company has been listed on the Italian Stock Exchange (Star) since June 2001. Starting from October 2015 Biesse is included in the Mid-Cap segment.

OUR BELIEFS

We believe in challenging standards, in thinking forward and in acting differently.

Creating advanced technologies and beautifully-designed solutions is the key to transforming our beliefs into real value.

Industrial Group Business Divisions Production Sites

1 5 12

6

We manufacture machines and components for wood, glass, stone, advanced materials and metal processing through specialised business units and 12 manufacturing sites in Italy and worldwide.

IN

HOW

Growing investments in R&D have enabled us to create technological solutions that have simplified the management of CNC machines, improving our customers' processes revolutionizing market standards.

WHERE

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.

WITH

Customers in 120 Countries.

Manufacturers of furniture, design items and door/window frames, producers of elements for the building, nautical and aerospace industries.

More than 4,200 employees throughout the world (temporary workers included) are our Human Capital Value

INNOVATION

Innovation is the driving force for the way we do business, continuously striving for excellence to support our customers' competitiveness.

Innovation is hard-wired in our DNA.

RELIABILITY

Our main principles:

• Fairness to all stakeholders
• Mutual trust and transparency
• Unrestricted and clear communications
• Sharing of knowledge and experience

EXCELLENCE

Profit A VIRTUOUS CIRCLE OF EXCELLENCE…

FOR A CONSTANT GROWTH

Cash

02

01

Revenue

03

FOOTPRINT

DISTRIBUTION

CUSTOMERS

SEGMENTS:

• JOINERS
• MAKERS OF LARGE FURNITURE ITEMS
• WINDOWS AND DOORS
• WOOD BUILDING COMPANIES AND MANUFACTURERS
• GLASS WORKERS
• MARBLE WORKERS
• WINDOWS
• FURNITURE
• KITCHEN MANUFACTURERS
• MACHINERY PRODUCERS:
• WOOD
• ALUMINUM
• PLASTIC
• METAL
• ADVANCED MATERIALS

A SHORT SELECTION OF THE COMPANIES WE SERVE:

18

STRATEGY

FACING A DISRUPTIVE GROWTH (1) …B2B companies will need a completely

different approach to driving growth…

what will impact our business over the next years:

Customer Insights & Analytics
Collect data across all touchpoints	81%
for a single view of customers	$67% =$	—14%
Translate customer data into actions	80%
leveraging advanced customer analytics	69%	+11%→
Extract and translate customer	73%
insights from new technologies	61%	+12%→
Customer Experience Operations & Performance		,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Monitor and predict Sales/	80%
Service performance	67%	—13%→
	78%
Enable workforce through efficient tools	67%	⊀11%)
	79%
Deal with complexity	68%	—11‰
		,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
	Performance Importance

FACING A DISRUPTIVE GROWTH (2)

…HOW BIESSE IS FACING THIS PHASE:

1 - REMAIN AHEAD OF CUSTOMER EXPECTANTIONS

2 – LEVERAGE DIGITALE TECHNOLOGIES

3 – SALES AND MARKETING ORGANIZATION FIT

SYSTEMS

BSUITE ACHIEVEMENT

A complete platform fully implemented

The single, integrated platform to manage all machine processes has been fully implemented on machines.

SMART FACTORIES

The new era of digitalisation for small and medium-sized companies

70% Smart for all

Our goal is to identify 4.0 Industry - oriented Customers in order to provide them with a new business model focused on software and integration.

30%

Super Systems

In the smart factory of tomorrow, each component is traced and identifiable enabling automatic feedback and process statistics to be generated.

SOPHIA BIESSE CHOSE ACCENTURE'S INDUSTRY X.0 TO LEAD IN THE NEW

Know-How, expertise and resources

is the IoT platform, created by Biesse in collaboration with Accenture, which enables its customers to access a wide range of services to streamline and rationalise their work management processes.

Smart Services

IIOT - SOPHIA

IOT BIESSE SERVICE PACK

• Priority service and extended coverage
• Continuous connection with the Biesse control center
• Direct monitoring of machine performance through a dedicated app
• Analysis of machine downtime, remote diagnostics and fault prevention
• On -site functional checks and technical inspections within the warranty period
• Proactive call after machine downtime notification
• Extended hours for service coverage from 8 to 12 hours per day

TO ACHIEVE GREAT RESULTS

ROUTE TO NEW SERVICES

With its new IIOT platform, Biesse is transforming itself from product-oriented manufacturer to a digital business offering to its customers value added services.

MORE PRODUCTS NEW TARGET

2020

Targets

8%

12%

Wood Division Estimated CAGR 2018-2020

4% Market Estimated CAGR 2018-2020

26 mln€

Metal

2020 Target

Advanced Materials

40 mln€

2020 Target

12.9% Mechatronics Division Estimated CAGR 2018-2020

14%

Tooling Division Estimated CAGR 2018-2020

G&S Division Estimated

CAGR 2018-2020

40% A.M. Division Estimated CAGR 2018-2020

7%

Market Estimated CAGR 2018-2020

5%

Market Estimated CAGR 2018-2020

6% Market Estimated CAGR 2018-2020

MORE SOLUTIONS NEW TARGET

WOOD-MARKET

COMPETITORS

The competition in the current market is consolidated. We evaluate to be the second leading company in the sector. Main competitors are located in Germany and in Italy. The most important ones are: in Germany belonging the (30.5% estimated market share) and in Italy (7,5% estimated market share*) not listed yet.

Estimated worldwide market share 2017

Market Size

2017

WOOD-TARGETS

Wood division Estimated CAGR 2018-2020 vs 2017

Market Estimated CAGR 2018-2020 vs 2017

Improve product reliability, renew existing product range 8%

of machines

02 Renovation and completion of the range

Enhance R&D for innovative solutions (technologies and new materials)

03

01

Expand the product range of woodworking machines for the housing market

HOUSING-MARKET

COMPETITORS

The competition in the market is consolidated. Main competitors are located in Germany and in Italy. The most important ones are (the Market Leader), ( ) in Germany and , in Italy.

2017 Market Size

Estimated worldwide market share 2017

Whole market potential €.0,5bn

HOUSING-TARGET

15 €/mln

2020 Target in wood construction

Biesse Group will continue to extend its product range, increasing penetration in the high potential segment (actually forecasted the best one) yet highly-strategic industry of timber carpentry (beams and structural façades).

materials (structural wood) 01 Expand our offering in other timber carpentry segments (minor complexity and higher volumes)

02 Leverage on Biesse capillarity to boost sales and after-sales worldwide

GLASS-MARKET

COMPETITORS

We are currently the industry leader in the glass processing market in which we operate. Main competitors are located in Italy and Germany, Austria:

They are: ( , ) , e .

STONE-MARKET

COMPETITORS

The competition in the current market is consolidated. We are among the leading companies in the sector and we intend to reinforce our positioning. Main competitors are located in France and in Italy and they are: ( ), , and .

2017 Stone Market Size

Estimated worldwide market share 2017

Whole market potential €650mln

GLASS & STONE TARGET

G&S Division Estimated CAGR 2018-2020 vs 2017

Market Estimated CAGR 2018-2020 vs 2017

01 Maintain and reinforce our leading 12% position in the glass sector

Increase our market share in the stone segment, reinforcing our leadership in 03 this area

TOOLING – GLASS – STONE & CERAMIC MARKET

TOOLING - TARGET

14%

Tooling Division Estimated CAGR 2018-2020 (vs 2017)

01 Maintain and reinforce our leading position in the glass sector

02

Expand our offering in new product segments

6%

Market Estimated CAGR 2018-2020 (vs 2017)

03

Increase our market share in the stone segment, reinforcing our leadership in this area

MECHATRONICS TARGET

Mechatronics Unit Estimated CAGR 2018-2020 (vs 2017)

2020 target in metal sector

Market Estimated CAGR 2018-2020 (vs 2017 )

5%

01 Maintain and reinforce our leading positioning in the Wood- Aluminum-Plastic (WAP) sector

02 Enlarge our product offering for metal working machines

03 Continue to strengthen its sales organization especially in Asian and Western Europe Market

ADVANCED MATERIALS

COMPETITORS

The advanced material* processing machinery market is highly fragmented worldwide, main competitors are , , , , ( ), , and .

*Advanced materials Carbon Fiber Foam Composite Alluminium Titanium

Care Model 1:1 Clay block 41

ADVANCED MATERIALS*

40

mln/€

2020 target In advanced material segment

*Advanced materials

Foam Plastics Composite Alluminium Titanium

Carbon Fiber

Expand our plastic working machineries in order to 01 meet the needs of the market.

02

Extend our product range drawing on the expertise of Uniteam to enhance its range of products and applications for machining advanced composite materials for several industries

application

Packaging

Energy

Renewable

Defense and Ballistics

communication

4242

SERVICE

21% 2020 Target incidence on Net Sales Our network supports our customers worldwide. Through Biesse service and Biesse parts. we offer technical services and machine/component spares parts anywhere in the world on-site. as well as on-line - 24/7.

Our Service will evolve to Service 2.0

Predictive: leave "break-and -fix" service as is logics and anticipate the needs moving onto predictive services thanks .

Digital: Fully implement On Line Sophia Services platform to offer advanced remote assistance, Spare Parts purchasing, Intelligent Troubleshooting, software update distribution and machines connection to Customer ERP

Master in Competence: Structure Training Academy supporting product and process competence to our Customers and Service team

SYSTEMS

We increased our market share becoming a leading company in the engineering solutions sector worldwide recognised.

The guiding strategy of the Biesse Systems team is based on the following clear key concepts:

• Automation
• Stock Management
• Modularity
• Total Quality

BSUITE

Potential Software Fees contribution to Net Sales (to be invoiced)

01

Consolidation. reliability and rationalization. Superior technology for creating synergies in machine automation.

Technological superiority and sustainability. Ensuring advanced. sustainable know-how in order to develop intelligent machines.

Simple. smart software. Meeting growing technological needs through application software and smart apps.

04 Business software. Business-oriented software to enhance collaboration with our customers' businesses.

SUBSIDARIES CLOSE TO CUSTOMERS

To expand our global presence to be close to our customers.

Continue to promote the "Roadmap to success" for our subsidiaries: moving from reactive to proactive, fostering entrepreneurship at all levels, defining market and customer-oriented strategies 01

02 Invest in new and innovative technological complexes, "Biesse Campus", to better support our expansion in selected areas

03 Invest in human resources and capabilities as growth drivers

STABILIZE PROFITABILITY

9.5% Net sales CAGR 2018-2020 vs 2017

< 39% Target COGS incidence on Net Sales

< 30% Target Labor Cost

incidence on Net Sales

< 20%

Target Overhead Cost on Incidence on Net Sales

Continue our growth trend

Optimize our production costs

Invest in human resources and capabilities as growth driver, controlling their incidence on net sales

Optimize Overhead costs

2018-2020: THE "OLD" 3 YEARS PLAN

(plan approved Feb 28th 2018)

Continuing to pursue an organic growth.

• . Increasing our sales force. subsidiaries. agents and distributors worldwide
• Growing not only in the woodworking machine sector. but also in the glass, stone, mechatronics and advanced materials segments, especially considering the after -sales services
• Continuing to diversify into new sectors: advanced materials and metal working even through the mechatronics division

EBITDA

Generation of value.

• Decreasing incidence of COGS on Net Sales taking advantage of the world production optimization and efficiency
• Maintaining Labour Cost incidence on Net Sales below 30%
• Maintaining Overhead incidence on Net Sales below 20%

NET FINANCIAL POSITION

Positive cash flow.

• Starting point: huge, positive Net Financial Position at the end of 2017
• Continuing to invest in R&D around 1.5% of Net Sales (capitalized) – effective 4%
• Cash Flow finances the projected increasing CAPEX to support our growth forecast
• Already paid yearly dividends (since 2014 for four years) for a total amount of > € 34 mln dividend policy 30% of the expected Group net profit

OPERATIVE NET WORKING CAPITAL

Control our Operative Net Working Capital.

• Maintaining Operative Net Working Capital incidence on Net Sales below 9-10%
• Maintaining our Group inventories below 22% incidence on Net Sales
• Maintaining our Group DSO around 50 -55 days max
• Maintaining our Group DPO around 110-120 days

continue our growth trend through focused investments.

2018e

tangible: € 27.4mln intangible: € 17.6mln

main investments drivers:

• India: investiment in durable goods
• Uniteam: improvement of the production plant
• Mechatronics: Italian plant (HSD S.p.A.) components production machines extension
• Metal Working: (internal phase): improvement of the components production
• I.T.: digital factory PLM & CRM Oracle Subsidiaries implementation
• R&D constant investment. Around 1.5% on net sales every year

*potential growth strategy through M&A not included

CAPEX: TANGIBILES

India: Manufacturing durable goods investments to meet the projected productive expansion improving the quality

Housing ( Uniteam Wood Division): improvement production plant – durable goods investments

Continue our growth trend through focused investments

ASSETS

Mechatronics Italian plant (HSD S.p.A.) components production machines (rotary tables) and production plant expantion TANGIBLE

Metal working (internal phase): improvement of the components production – durable goods investments

EXTRACT OF THE P&L

€/mln	2013	2014	2015	2016	2017		2020e	Targets
Net sales -1 year	378.4 -1.2%	427.1 +12.9%	519.1 +21.5%	618.5 +19.1%	690.1 +11.6%	CAGR 9.5%	906.2
Cost of good sold	155.9 41.2%	177.6 41.6%	206.1 39.8%	245.1 39.6%	270.1 39.1%		348.1 38.4%
Value added %	147.0 38.8%	167.8 39.3%	212.4 40.9%	252.4 40.8%	288.6 41.8%	CAGR 10.8%	393.1 43.4%
Labour cost	112.7 29.8%	128.2 30.0%	148.2 28.6%	176.6 28.6%	199.1 28.9%		266.0 29.3%	< 30% incidence
overhead	81.8 21.6%	91.0 21.3%	104.7 20.2%	124.5 20.1%	136.1 19.7%		167.7 18.5%	< 20% incidence
EBITDA %	34.3 9.1%	39.6 9.3%	64.1 12.4%	75.8 12.3%	89.5 13.0%	CAGR% 12.4%	127.1 14.0%
EBIT %	18.1 4.8%	24.8 5.8%	43.7 8.4%	55.1* 8.9%	63.6* 9.2%	CAGR 14.6%	95.7 10.6%

*after non recurring items tax rate 29.6%

OPERATIVE NET WORKING CAPITAL

% net sales	13.6%	13.0%	12.2%	10.8%	5.6%	7.7%
Operating Net Working Capital	51.4	55.6	63.4	66.9	38.7	70.2
Payables % net sales	29.4%	28.8%	29.5%	31.1%	32.4%	31.4%	DPO 120 days
Receivables % net sales	20.1%	18.9%	20.3%	20.8%	17.3%	19.2%	DSO 55 days
Inventories % net sales	22.8%	23.0%	21.5%	21.1%	20.8%	20.0%	<22%
€/mln	2013	2014	2015	2016	2017	2020e	Targets

RECEIVABLES PAYABLES INVENTORIES

CASHFLOW

€/mln	2013	2014	2015	2016	2017	2020e
Gross Cashflow % net sales	52.0 13.8%	38.3 9.0%	46.3 8.9%	45.8 7.4%	75.4 10.9%	95.2 10.5%
Investments % net sales	-19.8 5.2%	-20.8 4.9%	-25.2 4.9%	-32.0 5.2%	-39.2 5.7%	-50.5 5.6%
Net Cashflow % net sales	32.2 8.5%	17.5 4.1%	21.1 4.1%	13.8 2.2%	36.2 5.2%	44.7 4.9%
dividends		-4 8 share 0 18 per	-9 8 0 36 share per	-9 8 0 36 share per	-9 8 share 0 36 per	-16 6 of profit 30% net
Δ Net Debt		12.7	11.3	4.0	26.4	€ 28.1 vs 2019e
Net Debt	-23.9	-11.3	0.0	4.0	30.4	104.7

VALUE ADDED

EBIT

61

LABOUR COST

MACHINES MARKET VALUE

GDP

MAIN REFERENCE MARKETS:

Biesse % of sales per macro-sectors:

total dimension 2017: € 4.5 bln

consolidated net sales Biesse HOUSING-FURNITURE GDP-BIESSE

ORDERS UPDATE

SEPTEMBER 2018

(plan approved Feb 28th 2018)

GROUP ORDERS INTAKE & BACKLOG

EQUITY STORY

SHAREHOLDERS – B.O.D. STRUCTURE

(plan approved Feb 28th 2018)

EQUITY STORY (a)

€/MIL service growth: increase the installed base to growth a profitable service business

market position: more than 50% of the daily business from the non-mature economies markets

technological leadership: Biesse mission is to enable customers (in all divisions) to reduce costs and increase production efficiency "looking into the future"

Industry 4.0 & smart factory: intelligent solutions already completed (SOPHIA platform and BAvant software products family)

value creation: ROCE in 2013 0.2% - ROCE in 2017 40.3% (ROCE=EBIT/capital employed)

EQUITY STORY (b)

Biesse performance indicators (most used ones)

(financial)

€/mln	2012	2013	2014	2015	2016	2017	Incoming orders sales
INCOMING ORDERS	302.3	312.7	375.6	442.6	507.9	596.8	EBITDA/EBIT ROCE (EBIT/capital employed)
NET SALES	383.1	378.4	427.1	519.1	618.5	690.1	free cashflow
EBITDA	25.0	34.3	39.6	64.1	75.8	89.5	(non – financial)
EBIT	0.3	18.1	24.8	43.7	55.1	63.6	employee and customer satisfaction training
ROCE	0.2%	12.7	18.4%	30.9%	35.6%	40.3%	sustainability innovation

SHAREHOLDERS BREAKDOWN – BOARD OF DIRECTORS €/MIL

Biesse B.o.D.:

Giancarlo Selci (Founder - President)

Roberto Selci (C.E.O.)

Stefano Porcellini (Group Director)

Alessandra Parpajola

Giovanni Chiura (indipendent)

Federica Palazzi (indipendent)

Elisabetta Righini (indipendent)

FIRST HALF 2018

THE LATEST RESULTS OFFICIALLY APPROVED

BIESSE HIGHLIGHTS IH 2018

orders intake +3.6%

backlog +10.8%

Group people nr. 4,290 (including temporary people)

net sales € 356

net financial position cash positive € 16.7

ebitda € 43.5 (incidence on sales 12.2%)

ebit € 30.3 (incidence on sales 8.6%)

net result € 17.2 (incidence on sales 5.0%)

EXTRACT OF THE P&L – IH 2018

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	IH 2017	IH 2018
Net sales year -1	378.4 -1.2%	427.1 +12.3%	513.1 +21.5%	618.5 +19.1%	690.1 +11.6%	331 2	356
Value added %	143.5 37.3%	163.1 33.6%	212.4 40.3%	252.4 40.8%	288.6 41.8%	139 42 0%	150 3 42 2%
Labour cost %	112.7 23.8%	128.2 30.0%	148.2 28.6%	176.6 28.6%	199.1 28.9%	98 3 29 7%	106 8 30 0%
EBITDA %	30.3 8.2%	40.3 3.6%	64.1 12.4%	75.8 12.3%	89.5 13.0%	40 8 12 3%	43 5 12 2%
EBIT %	18.1 4.8%	26.5 6.2%	43.8 8.4%	55.1 8.9%	63.6 9.2%	29 6 8 9% ,	30 3 8 5%
					tax rate	37.2%	35.8 %

30,4 FIRST HALF VS FULL YEAR NET FINANCIAL POSITION

16,7

CASHFLOW - NET DEBT

€/mln	2013	2014	2015	2016	2017	2018 IH	2020e
Gross Cashflow % net sales	52.0 13.8%	38.3 9.0%	46.3 8.9%	45.8 7.4%	75.4 10.9%	19.1 5.4%	95.2 10.5%
Investments % net sales	-19.8 5.2%	-20.8 4.9%	-25.2 4.9%	-32.0 5.2%	-39.2 5.7%	-19.7 5.6%	-50.5 5.6%
Net Cashflow % net sales	32.2 8.5%	17.5 4.1%	21.1 4.1%	13.8 2.2%	36.2 5.2%	-0.6 -0.2%	44.7 4.9%
dividends		-4.8 0.18 per share	-9.8 0.36 per share	-9.8 0.36 per share	-9.8 0.36 per share	- 13.1 0.48 per share	-16.6 30% of net profit
Δ Net Debt		12.7	11.3	4.0	26.4	-13,7
Net Debt	-23.9	-11.3	0.0	4.0	30.4	16 7	104.7

North America Asia

Wood Glass & Stone Mechatronics Tooling Components Elisions

GROUP PEOPLE DISTRIBUTION

JUNE 2018

PEOPLE DISTRIBUTION (without interim people)

	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2016	FY 2016	FY 2017	June 2018
Production % of total people	965 41%	1.250 46%	1.265 45%	1.175 44%	1.201 42%	1.335 42%	1.482 41%	1.494 39%	1.623 39%
Service & After % of total people	sale 568 24%	577 21%	574 21%	613 22%	628 22%	690 22%	803 22%	894 23%	934 23%
R&D % of total people	293 12%	316 12%	338 12%	321 12%	361 13%	383 13%	436 12%	479 12.5%	527 12.8%
Sales & Marketing % of total people	340 13%	361 13%	364 13%	351 13%	439 15%	495 15%	587 16%	641 17%	700 17%
G & A % of total people	202 9%	233 9%	242 9%	235 9%	252 9%	273 9%	310 8.5%	338 8.8%	331 8.0%
ITALY % of total people	1.660 70%	1.656 61%	1.646 59%	1.547 57%	1.605 56%	1.780 56%	2.009 56%	2.176 56%	2.398 58%
OUTSIDE ITALY % of total people	708 30%	1.081 39%	1.136 41%	1.148 43%	1.276 44%	1.396 44%	1.609 44%	1.670 44%	1.717 42%
TOTAL	2,368	2,737	2,782	2,695	2,881	3,176	3,618	3,846	115 4 ,

PEOPLE DISTRIBUTION

	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	June 2017	June 2018
ITALY % of total people	1660 70%	1656 61%	1646 53%	1547 57%	1605 56%	1780 56%	2009 56%	2176 56%	2108 56%	2296 58%
OUTSIDE ITALY** % of total people	708 30%	1081 33%	1136 41%	1148 43%	1276 44%	1336 44%	1609 44%	1670 44%	1677 44%	1672 42%
TOTAL	2368	2737	2782	2695	2881	3176	3618	3846	3785	4115	+8.7%

interim people at the end of June 2016: 195 interim people at the end of June 2017: 193 Interim people at the end of June 2018: 175

June 2018: 4,290

Alberto Amurri Investor Relator Manager 0039 - 0721439107 0039 - 3351219556