Biesse

Investor Presentation • Jun 14, 2017

Forward-thinking solutions to leverage the fourth industrial revolution

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.

THINKFORWARD is all about Biesse Group's ability to innovate and provide integrated solutions that are sophisticated but easy to use, allowing our customers to produce more, better and at a lower cost. It encourages us to look ahead before deciding how acting today.

Biesse Group

Who we are Our values Business Model

Biesse Group

Who we are

Our purpose Our beliefs In How Where With We

Biesse Group / Who we are

Our purpose

"…back when we were simply producing machines, I was talking with a dear friend, and realised that the rough, imprecise way he was working was ineffective, and above all, dangerous to his personal safety. At that moment, I recognised a need for change, and immediately understood that we could do something we could introduce innovative new ways of working, automate processes, and above all, create safer working conditions.

A new kind of machine was about to be born".

Our beliefs Biesse Group / Who we are

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.

We manufacture machines and components for wood, glass, stone, advanced materials and metal processing through specialised business units and 9 manufacturing sites in Italy and worldwide.

production sites

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

More than

patents registered

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.

More than

subsidiaries and representative offices

37

11

Customers in 120 countries: manufacturers of furniture, design items and door/window frames, producers of elements for the building, nautical and aerospace industries.

"Strength lies in differences, not in similarities" (Stephen Covey)

employees throughout the world (temporary workers included) are our Human Capital (March 2017 update)

Biesse Group

Our Values

Innovation Reliability Excellence

Biesse Group / Our values

Innovation is our driving force

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. Past, present and future.

15

Biesse Group / Our values

Reliability

Our main principles

Fairness to all stakeholders Mutual trust and transparency Unrestricted and clear communications

Sharing of knowledge and experience

Biesse Group / Our values

Excellence

A virtuous circle of excellence for a constant growth

03

Cash

Revenue

01

Profit

02

17

Wood

Glass

Stone

Mechatronics Metal

bSoft (software)

Plastic & Advanced Materials

Biesse Group / Our values / Excellence

Biesse Group

Business Model

Products Footprint Distribution Customers

Biesse Group / Business Model

Products

02

WOOD

Systems

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

01

04

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

manufacture and

Machines

We design,

Tooling

We manufacture custom made blends of diamonds and alloy tools for glass, stone and synthetic materials processing, which have been developed and field tested to meet customer requirements.

Mechatronics

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

03

Biesse Group / Business Model

Footprint

Distribution

Biesse Group / Business Model

Customers Segmentation

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

25

Where we are: business plan update

Strategy & Results Products Solutions Customer Experience Where we are: business plan update

Strategy & Results

2016 successes Execution on track

Where we are / Strategy & Results

2016 Successes

55,1

€/mln

EBIT

75,8 €/mln EBITDA

+4,9 €/mln Net Financial Position

Where we are / Strategy & Results

Where we are / Strategy & Results

Where we are: business plan update

Products

Exceeding targets Wood Housing Glass & Stone Mechatronics Tooling Advanced Materials

Exceeding targets

Best-in-class Alignment

Wood

Technology news

Rover A Smart Rover K Smart Rover M5 Brema Eko 2.2 Selco WN 2 Selco SK3 Viet Opera R Stream AK Stream K Winner W4

Housing

Uniteam joined Biesse Group

Uniteam has specialized in the design and manufacture of multi -axis machines for wood construction materials, machining of advanced materials and a range of other special applications from automotive to prototyping .

Working together to broaden their product range and to push territorial boundaries .

35

Housing

Technologies for the machining of solid wood beams and panels for any wooden structure used in building wooden frame houses, wooden panel houses, prefabricated buildings and playgrounds.

The Housing technologies include : Rover range WinLine range Uniteam range

Glass & Stone

Technology news

Glass Master series - Glass Genius CT-RED series

Stone Master series - Stone Mastersaw 625 DT

37

Mechatronics

Technology news

ES505 ES575 ES511 Electrospindles dedicated to metal and composite material processing on CNC machine tools

HS610 HS810 Two-Axis-heads dedicated to metal processing CNC machine tools

ES951 e-CORE range extension IoT ready Electrospindles dedicated to wood and aluminum processing

Tooling

Technology news

Swave KCX DMV/504 New Flash Tools for technical materials

39

Advanced Materials

Technology news

Materia FC Materia CL Materia LD Materia MR Rover Plast M5 Brema Plast Eko 2.1 Where we are: business plan update

Solutions

Exceeding targets Service Systems bSuite achievements

Where we are / Solutions

Service

• Field engineers in Italy and worldwide + Certified dealer engineers + Training course Technical service and spares on-site and 24/7 on-line.

43

Where we are / Solutions

Systems

More than

500

Systems installed worldwide, reached in 2016

Where we are / Solutions

45

bSuite achievement

A complete platform fully implemented

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

Where we are: business plan update

Customer Experience

Exceeding targets Close to customers Feeling the products Predicting customer needs IIoT with Accenture & Microsoft

Exceeding target

Take Over

Revenues in North America in 2016 +18,4 mln/€

Revenues in ASIA in 2016 +26,7 mln/€

Revenues in Western Europe in 2016 +72,6 mln/€

+4 New Local Branches

8.000 Demos in 2016

47

Feeling the products

Discovering our factories

HSD: a 4.0 factory Manufacturing Lab Training Academies

Close to Customers

New Technology Campus

April 2016 Charlotte NC, USA

Investing Expanding Customer care

49

New plants

4.0 factory

Worldwide shows

Exhibitions

56

4

Inside events

one2one events & Tech Tour

Institutional events Biesse Campus

Pesaro, Italy April, 16th 2016

Major Customers International Press Institution al figures, with the special participation of the Minister Boschi

Predicting Customer needs

A new step towards the Factory of the Future "For us 4.0 is not simply a number representing the so-called new industrial revolution, but a real commitment toward our customers to allow them, to achieve the highest level of efficiency" Federico Broccoli (Wood Division Director / Sales)

01 Design

02 Materials Software

Materials Innovation

03 Production

Industry 4.0

04 Shape & Installation

IIoT with Accenture & Microsoft

Biesse is collaborating with Accenture & Microsoft on an Industrial Internet of Things (IIoT) project to deliver new services to its customers and augment the aftermarket business.

The flexible range of services serves to improve machine productivity and customer satisfaction by minimizing machine outages through predictive maintenance and in-depth analytics.

Based on the pilot's success, the company plans to roll out services encompassing 10,000 machines. Biesse's advanced IIoT capabilities delivers more control over its machines and overall competitive differentiation.

I.I.o.T. - service transformation

Sensors and devices fitted into machines enable in depth analysis to be carried out and viewed via control panels on mobile devices

CNC I.I.o.T. Service Pack

• Priority service and extended coverage
• Continuos connection with the Biesse control center
• Direct monitoring of machine performance through a dedicated app
• Analysis of machine stoppages, remote diagnostics and fault prevention
• On site functional checks and technical inspections within the warranty period

At the end the service transformation is:

Significant benefit

• Optimization of efficiancy and of operating quality
• Net reductions in repairs times
• Better accuracy in predicting machine stoppage
• Remote software updates

1h 80% 50% maximum time taken reduction in the time overall reduction in

of machine stoppage process

to deal with an instance required for the diagnostic downtime

Where we want to go: 2019 new targets

Continuous Growth More products More solutions More Customer Experience

Where Where we want to go / we want to go / Continuous Growth Continuous Growth More products New target

Wood Division Estimated CAGR 2017-2019

G&S Division Estimated CAGR 2017-2019

MechatronicsDivision Estimated CAGR 2017-2019

Tooling Division Estimated CAGR 2017-2019

A.M. Division Estimated CAGR 2017-2019

4%

Market Estimated CAGR 2017-2019

7% Market Estimated CAGR 2017-2019

5% Market Estimated CAGR 2017-2019

To evolve to Service 2.0: from a "break and fix" approach to a proactive service

To increase our market share in the system solutions market.

To improve our software to keep offering to our Customers endless possibilities.

n our strategy BCx New targets Where we want to go / Continuous Growth

• Continue to increase our capillarity through Subsidiaries and Distributors
• Invest in the excellence of Chinese and Indian manufacturing plants
• Develop a unique Worldwide Biesse Customer Experience
• Improve our Customer Care
• Implement the IIoT

Where we want to go: 2019 new targets

More Products

Markets & Targets Wood Housing Glass & Stone Mechatronics Advanced Materials

Where we want to go / More ProductsWood - Market

Estimated worldwide market share 2016

Market Size

Whole market potential

€3.5bn

2016

Outlook

Looking forward, we expect the market to continue grow at about 3.9 times the reference sector average growth rate.

Competitors

The competition in the current market is consolidated. We are the second leading company in the sector. Main competitors are located in Germany and in Italy. The most important of these are HOMAG in Germany (29.5% estimated market share) and SCM in Italy (7% estimated market share*).

*automatic machines

SCA Indústria de Móveis (Brasil)

Wood - Targets Where we want to go / More Products

G&S Division Estimated CAGR 2017-2019

Market Estimated CAGR 2017-2019

Improve product reliability, renew existing product range

01

02 Renovation and completion of the range of machines

03

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

Expand the product range of woodworking machines for the housing market

Where we want to go / More Products Housing - Market

Estimated worldwide market share 2016

Market Size

Whole market potential

€.0,2bn

2016

Outlook

Looking forward, we expect the market to continue grow more than the 3.9 times the reference sector average growth rate.

Competitors

The competition in the market is consolidated. Main competitors are located in Germany and in Italy. The most important of these are Hundegger (the Market Leader), HOMAG and Weinmann in Germany and SCM, Essetre in Italy.

Musée du Vin et du Négoce (Bordeaux)

62

Where we want to go / More Products Housing - Target

11 €/mln

2019 Target in wood construction materials machines market

Biesse Group will further extend its product range, increasing penetration in the "niche" yet highly-strategic industry of timber carpentry (beams and structural façades).

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

Where we want to go / More Products Glass - Market

Outlook

In the near future. we anticipate that the glass processing market will grow at about 3.9 times the reference sector average growth rate.

Competitors .

(Valencia) We are currently the industry leader in the glass processing market in which we operate. Main competitors are located in Italy and they are CMS. Bottero. and Hegla.

Ciudad de las Artes y las Ciencias, Cerviglas

64

Estimated

2016

Glass

share 2016

worldwide market

Market Size

€880mln

Whole market potential

Where we want to go / More Products Stone - Market

Outlook

Looking to the future. as the in the wood sector. we expect the market to continue to grow at about 3.9 times the reference sector average growth rate.

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 CMS. Breton and Thibaut.

"Bicefalo" sculpture Marmi Fontanelli

€600mln

Estimated

2016

Stone

share 2016

worldwide market

Market Size

Whole market potential

Where we want to go / More Products Glass & Stone Target

G&S Division Estimated CAGR 2017-2019

7%

Market Estimated CAGR 2017-2019

01

02

Expand our offering in new product segments

the glass sector

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

Maintain and reinforce our leading position in

Where we want to go / More Products Mechatronics - Market

€

0.7bn

materials Carbon Fiber

Foam Composite Alluminium Titanium ⁶⁷

Outlook

In the near future, we anticipate that the spindles market will grow in line with the reference markets of WAP and metal working machines.

Competitors

Our mechatronics division is currently the leader in the WAP (Wood Advanced Materials*. Plastic) spindles sector. We entered the metal spindles sector. Our main competitors are from Germany. They are KESSLER. IBAG. GMN. WEISS (Siemens). FISHER and STEPTEC.

Where we want to go / More Products Mechatronics Targets

11%

Mechatronics Unit Estimated CAGR 2017-2019

Market Estimated CAGR 2017-2019

19 mln/€

2019 target in metal sector

01 Maintain and reinforce our leading

02 Reinforce the partnership with our current

03 Substantial market share improvement into the metal sector by replicating our WAP standards of excellence in new sectors

positioning in the Wood- Aluminum- Plastic

(WAP) sector

customers

Where we want to go / More Products Advanced Materials*

Titanium

Outlook

In the near future. we expect that the market of Advanced Materials Processing where we insist will double around the GDP grow rate.

Competitors

The advanced material processing machinery market is highly fragmented worldwide, main competitors are Geiss, HG Grimme, Belotti CMS Industrie, Breton, Mecanumeric, Multicam and Flow Corporation.

Care Model 1:1 Clay block

Where we want to go / More Products Advanced Materials*

*Advanced materials

• Carbon Fiber
• Foam
• Plastics
• Composite
• Alluminium
• Titanium

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

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

Renewable Energy

Marine

Defense and Ballistics

Visual communication 70

application

02

Medical Devices

Automotive

Where we want to go: 2019 new targets

More Solutions

2019 new targets Service Systems bSuite

Where we want to go / More Solutions

Service

Our network supports our customers worldwide. Through Biesse service and Biesse parts. we offer technical services and machine/component spares to businesses anywhere in the world on-site. as well as on-line - 24/7.

Our Service will evolve to Service 2.0

• Proactivity: leave "break-and -fix" service logics in the past and move onto proactive services. On-site assistance
• Spare Parts: encourage a 24/7 assistance / no down-time approach with maintenance contracts / replacement parts warehouse with over 8.000 items
• Continuous Training : training dedicated to Biesse Field engineers, subsidiary and dealer personnel

Where we want to go / More Solutions

Systems

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

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

• Definite lead times
• Automation
• Stock Management
• Modularity
• Total Quality

Where we want to go / More Solutions

bSuite

1.0 Potential Software Fees contribution to % Net Sales

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

02

01

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

03

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. 74 Where we want to go: 2019 new targets

Biesse Customer Experience

BCx Close to customers Feeling the products Customer Services IIoT: predicting your needs

Close to customers: Subsidiaries

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

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

• DACH (Germany-Austria-Switzerland)
• Middle East
• Oceania

02

01

Invest in human resources and capabilities as growth drivers

Close to customers: Trade Distribution 2.0

To strengthen our dealer network

Continue the Trade Markets Investments towards the "Roadmap to success".

We began the sales growth process by our Headquarters and Subsidiaries, and we are now ready to support our dealers .

We will support them investing in strategic assets providing them with tools and a dedicated team of people: specialists in CRM, Sales Intelligence, Road Mapping, Marketing & Communication, trade fairs, events and showrooms.

Close to customers: India & China

In addition to the Italian sites, we boost manufacturing sites in India and China, to better satisfy Customer worldwide.

The two sites, Bangalore and Dongguan manufacture a portfolio Local4Global, distributing their products worldwide.

78

01 Product Quality Made in Biesse

02 Local suppliers certified by Biesse Quality

03 Ongoing integration and training

2019 Target (machines) production abroad quote 15%

Feeling the products

Live the Experience at the Biesse Group booth during exhibitions:

• Virtual Reality
• 4.0 Industry
• Symposium

Continue to improve our Showroom, increase the number of the Inside and one-to-one events and measure their impact on the local market.

Continue to invest in exhibitions taking part in shows for all sectors including composites.

Biesse Group Collection

A merchandising project with an online shop to sell high quality branded products in order to

Increase the brand awareness Strength the brand identity Increase the Dealer and Customer loyalty Renforce the communication consistency Increase the individual sense of belonging

Available for Biesse Group employees as well.

Customer Services

Promoting, nurturing and developing close and constructive relationships with customers in order to better understand their needs and improve Biesse products and after-sales service.

• Zero Downtime objective
• Worldwide local expertise
• Connectivity and training master

Predict your needs: IIot Hannover Messe 2017

A solid example of Biesse's ability to innovate

Biesse will participate in the Hannover Messe 2017, the most important trade fair for innovation anywhere in the world.

In collaboration with Accenture and Microsoft Biesse Group will present an icon for cutting edge Biesse technology, a Rover Machining Centre with its 5-axis electrospindle connected to the cloud.

82

Our present in figures – IQ 2017

Orders

Sales breakdown

Results breakdown

Revenue

Profit

O.N.W.C.

Cash

People

Shareholders

orders intake & backlog

by quarters

Sales breakdown- March 2017

-area

Wood Glass & Stone Mechatronics Tooling Components Elisions

13,0% 18,0% 20,0% 4,0% FY 2016 Italy 15.5%

Western Europe (Italy included) Eastern Europe North America Asia Rest of the World

Western Europe (Italy included) Eastern Europe North America Asia Rest of the World

Extract of the P&L – IQ 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IQ 2016	IQ 2017
Net sales year -1	378.4 -1.2%	427.1 +12.3%	513.1 +21.5%	618.5 +19.1%	117.6 +4.3%	161.5 +37.3%
Value added %	143.5 37.3%	163.1 33.6%	212.4 40.3%	252.4 40.8%	50.9 43.3	69.8 43.2%
Labour cost %	112.7 23.8%	128.2 30.0%	148.2 28.6%	176.6 28.6%	41.2 35.1%	48.2 29,8%
EBITDA %	30.3 8.2%	40.3 3.6%	64.1 12.4%	75.8 12.3%	9.6 8.2%	21.6 13.4%
EBIT %	18.1 4.8%	26.5 6.2%	43.8 8.4%	56.3 8.1%	5.4 4.6%	16.1 10.0%
Net Result %	4.3 1.1%	13.8 3.2%	21.1 4.1%	29.5 4.8%	3.1 2.7%	9.4 5.8%

tax rate 47.1% 36.8%

Cashflow IQ 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IQ 2016	IQ 2017
Gross Cashflow % net sales	52.1 13.8%	38.3 3.0%	46.3 8.3%	46.6 7.5%	-7.3	+11.5
Investments % net sales	-13.3 5.2%	-20.8 4.3%	-25.2 4.3%	-32.0 5.2%	-4.6	-6.6
Net Cashflow %	32.3 8.5%	17.5 4.1%	21.1 4.0%	- 14.6 2.4%	-11.9	4.9
not ordinary items (dividends/treasury shares activity balance /acquisitions payment)	--	-4.8 div. paid € 0.18 per share	-3.8 div. paid € 0.36 per share	-9.8 div. paid € 0.36 per share
delta Net debt	+32.3	+12.7	+11.3	4.8	-11.9	----
NET FINANCIAL POSITION	-23.3	-11.2	0.1	4.9	-11.8	4.9

Net Financial Position trend – first quarters

Operating Net Working Capital IQ 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IQ 2016	IQ 2017
Inventories % net sales	22.8%	23.0%	21.5%	21.1%	110.0%	89.3%	DSI 163 days
Receivables % net sales	20.1%	18.3%	20.3%	20.8%	85.9%	73.2%	DSO 51 days
Payables % net sales	23.4%	28.8%	23.5%	31.1%	135.0%	117.5%	DPO 123 days
Operating Net Working Capital % net sales	51.4 13.6%	55.6 13.0%	63.4 12.2%	66.9 10.8%	71.6 61.0%	72.7 45.0%	target incidence <12%

People distribution					(without interim people)
	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	March 2016	March 2017
Production % of total people	365 41%	1250 46%	1265 45%	1175 44%	1201 42%	1335 42%	1482 41%	1426 41%	1470 40%
Service & After sale % of total people	568 24%	577 21%	574 21%	613 22%	628 22%	630 22%	803 22%	788 22.4%	846 23%
R&D % of total people	233 12%	316 12%	338 12%	321 12%	361 13%	383 13%	436 12%	428 12.2%	456 12.3%
Sales & Marketing % of total people	340 13%	361 13%	364 13%	351 13%	433 15%	435 15.6%	587 16%	565 16%	598 16.2%
G & A % of total people	202 3%	233 3%	242 3%	235 3%	252 3%	273 3%	310 8.5%	302 8.6%	320 8.6%
ITALY % of total people	1660 70%	1656 61%	1646 53%	1547 57%	1605 56%	1780 56%	2.009 56%	1327 55%	2060 56%
OUTSIDE ITALY** % of total people	708 30%	1081 33%	1136 41%	1148 43%	1276 44%	1336 44%	1.609 44%	1582 45%	1630 44%
TOTAL	2368	2737	2782	2635	2881	3176	3.618	3,503	3,690

	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	March 2016	March 2017
ITALY % of total people	1660 70%	1656 61%	1646 53%	1547 57%	1605 56%	1780 56%	2009 56%	1327 55%	2060 56%
OUTSIDE ITALY** % of total people	708 30%	1081 33%	1136 41%	1148 43%	1276 44%	1336 44%	1609 44%	1582 45%	1630 44%
TOTAL	2368	2737	2782	2635	2881	3176	3618	3,503	3,690

People distribution

vs Dec 2016: +72 without interim people vs Dec 2016: +76 with interim people

IQ 2017: 3,875

interim people at the end of March 2016: 138 interim people at the end of December 2016: 181 interim people at the end of March 2017: 185

projected average tax rate for the 3 years plan 35%

Patent Box & IRES reduction can impact totally for approx 6.5% the tax rate D.T.A .(China) can't be used

What next – IH 2017e

€/mln	FY 2016	IQ 2017	IH 2017e	FY 2017e
net sales year -1	618.5 +19.1%	161.5 +37.3%	337.1 +18.9%	676.3 +9.3%
ebitda %	75.8 12.3%	21.6 13.4%	- 41.0 12.2%	83.3 12.3%
ebit %	55.1 8.9%	16.1 10.0%	30.5 9.5%	60.6 9.0%
net financial position	+4.9	+4.9	-21.5	-0.5

Shareholders breakdown by ownership – Board of Directors

Biesse B.o.D.:

• Giancarlo Selci
• Stefano Porcellini
• Alessandra Parpajola
• Cesare Tinti
• Salvatore Giordano (indipendent)
• Elisabetta Righini (indipendent)

share price: statistics

Revenue Profit Cash

Annex

Net Sales - Anticipating plan execution

€/mln 2011 2012 2013 2014 2015 2016 2018e 2019e 2017e ^{389 383 378} 427 519 826 572 633 704 619 676 752 '16-'18 three years Plan '17-'19 three years Plan

Confirming the growth growth path to consolidate our leadership

• In 2016 we went beyond our targets, anticipating plan execution
• We yearn to achieve higher targets in 2019 leveraging on our strategy: more products, more solutions, more customers

Stabilize Profitability

10,1% Net sales CAGR 2017-2019

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 path

Optimize our production cost

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

Optimize Overhead cost

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 areas of glass. stone, mechatronics and advanced materials especially considering the after -sales services
• Continuing to diversify into new sectors: advanced materials and metal working

Our future in figures / Profit

value.

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

Our future in figures / Cash

Net Financial Position

Positive cash

• Financial Position at the end of 2016
• Continuing to invest in R&D around 2% of Net Sales
• Cash Flow finances the projected increasing CAPEX to support our growth forecast
• Paid yearly dividends (since 2014 for tree years) for a total amount of > € 24 mln

Operating Net Working Capital

Control our Operating Net

• Maintaining Operating Net Working Capital incidence on Net Sales well below 12%
• Maintaining our Group inventories below 21% incidence on Net Sales
• Maintaining our Group DSO around 60 -65 days
• Maintaining our Group DPO around 100-110 days

*Potential growth strategy through M&A not included

Capex* Continue our growth path through

2017e tangible: € 24.4 mln

intangible: € 17.2 mln

main investments drivers:

• Indian Manufacturing Site
• Chinese durable goods investments (KOREX)
• Mechatronics Italian plant (HSD S.p.A.) components production machines
• Metal Working (internal phase): improvement of the components production
• I.T.: digital factory PLM & CRM Oracle implementation
• R&D constant investment. around 2% on net sales every year

Indian Manufacturing Site widening to meet the projected productive expansion

ChineseProduction Site upgrade and durable goods investments (KOREX) CNC lathe , vertical and horizontal working center machines

tables) + american subsidiary new site TANGIBLE (HSD U.S.A. subsidiary) ASSETS

Capex: tangibles Continue our growth path through investments

Mechatronics Italian plant (HSD S.p.A.) components production machines (rotary

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

106

Capex: intangibles continue our growth path through investments

Extract of the P&L

€/mln	2013	2014	2015	2016		2019e	Targets
Net sales year -1	378.4 -1.2%	427.1 +12.9%	519.1 +21.5%	618.5 +19.1%	CAGR 10.1	825.7
Cost of good sold	155.9 41.2%	177.6 41.6%	206.1 39.8%	245.1 39.6%		322 39.0%
Value added	147.0	167.8	212.4	252.4		347.3
%	38.8%	39.3%	40.9%	40.8%	CAGR 11.2	42.1%
Labour cost	112.7 29.8%	128.2 30.0%	148.2 28.6%	176.69 28.6%		241.9 29.3%	< 30% incidence
overhead	81.8 21.6%	91.0 21.3%	104.7 20.2%	124.5 20.1%		159.4 19.3%	< 20% incidence
EBITDA	34.3	39.6	64.1	75.8		105.4
%	9.1%	9.3%	12.4%	12.3%	CAGR 11.6	12.8%
EBIT	18.1	24.8	43.7	55.1*		78.7
%	4.8%	5.8%	8.4%	8.9%	CAGR 12.6	9.5%	108

*after non recurring items

Operating Net Working Capital

€/mln	2013	2014	2015	2016	2019e	Targets
Inventories % net sales	22.8%	23.0%	21.5%	21.1%	20.2%	<21%
Receivables % net sales	20.1%	18.9%	20.3%	20.8%	20.6%	DSO 60-65 days
Payables % net sales	29.4%	28.8%	29.5%	31.1%	29.7%	DPO 100-110 days
Operating Net Working Capital % net sales	51.4 13.6%	55.6 13.0%	63.4 12.2%	66.9 10.8%	92.0 11.1%

Cashflow - Net Debt

€/mln	2013	2014	2015	2016	2019e
Gross Cashflow % net sales	52.0 13.8%	38.3 9.0%	46.3 8.9%	46.6 7.5%	69.3 8.4%
Investments % net sales	-19.8 5.2%	-20.8 4.9%	-25.2 4.9%	-32.0 5.9%	-32.0 3.9%
Net Cashflow % net sales	32.2 8.5%	17.5 4.1%	21.1 4.1%	14.6 2.4%	37.3 4.5%
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
Δ Net Debt		12.7	11.3	4.8
Net Debt	-23.9	-11.2	0.1	4.9	44.7

Value added

112

People evolution

	FY 2016	FY 2017e	%
Production	1.482	1,574	+ 6.2
Service & After sale	803	934	+16.3
R&D	436	495	+13.5
Sales & Marketing	587	676	+15.2
G & A	310	324	+4.5
ITALY	2.009	2,166	+ 7.8
OUTSIDE ITALY	1.609	1,837	+ 14.2
TOTAL	3.618	4,003	+10.6

the labour cost increase is EURO 25.1 mln vs 2016 (29.7% 2017 incidence against net sale vs 28.5% in 2016)

114

People distribution by main countries - ²⁰¹⁶

People distribution by main countries – 2017e

Annex

Machines Market Value Drivers and impact Our future in figures / Annex

Construction

118

GDP

Our future in figures / annex

Historical correlation index (since 2004) 3.9

Our future in figures / Annex

Housing & Furniture - Beta

world furniture & housing average 2017-2019: +2.9% historical correlation index (2004-2016): 3.9 THEORETICAL BIESSE GROW RATE: 11.3%

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.

biessegroup.com

A. Amurri Investor Relator Manager 0039 – 0721439107 0039 - 3351219556