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Biesse

Investor Presentation Nov 25, 2016

4501_rns_2016-11-25_84571d1b-cd70-484c-9b59-966991ac46ba.pdf

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Our customers definethe shape of the world, we make it possible.

Company presentationNovember2016

Biesse Group

Biesse Group is a global leader in the technology for processing wood, glass, stone, plastic, 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.

In

We manufacture machines and components for wood, glass, stone, plastic and metal processing throughspecialised business units and 8 manufacturing sites in Italy and worldwide.

4

production sites

How

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

more than

patents duly registered

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.

branches and representative offices

6

certified dealers

production sites outside Italy (India - Bangalore, China - Dongguan)

Where we are

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new 7

We

Our Human capital.

more than

3,500

employeesthroughout the world without interim people

Our Values

InnovationReliabilitySustainabilityExcellence

Our values/

Innovation

meets creativity.

Our pillars to mastering innovation:

Customer Focus

12

  • Internet of Things
  • Digital Manufacturing
  • Industry 4.0 / Think4ward

Biesse. the perfect combination of innovation and italian creativity.

Our values/

Innovation

generatesvalue.

Some of our leadingtechnology solutions:

  • Automatic blade change on beamsaws
  • 5-axis operating unit
  • Air Force System
  • Twin Pusher
  • bSuite software

Our values/

compliance. Reliability

to enhance trustand

Customers

Satisfied

14

Partners

OUR MAIN PRINCIPLES

Fairness to all stakeholdersMutual trust and transparencyUnrestricted and clear communicationsSharing of knowledge and experience

Employees

Trusted & Loyal Winning & Committed Growing & Qualified Investors

Our values/

Sustainability

to get widespread goodwill andstrong reputation.

Society

Environment People

Regulation

Financial

Only the culture of strictly adherence to good compliance can keep our Group ahead on sustainable basis.15

for a consistent growth

Our values / Excellence/

OurBusiness Model key points

We maketop-quality Italian products

20

We deliver top-quality, dedicated solutions worldwide

Knowledge DeliveryDeliveryProductsCustomers

Our Business Model / Wide offering for a wide Customer base

OurProducts

02

WOOD

Systems

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

04

Machines

We design, manufacture and distribute a comprehensive range of machinery and technologies for processing wood, glass, stone and, in recent years, plastics.

03

Tooling

We create customized diamond and binder mixes for stone and glass processing machinery.

Mechatronics

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

PLASTIC

Our Business Model /

Ourmain customers

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special event: Inside Biesse replica

The traditional three-day event dedicated to the technological innovations at the service of those who work with wood and advanced materials.

The "Smart 4 all" theme of this edition has allowed the visitors to acquire a 360° vision of the potentials that digitalization can offer to the manufacturing sector. "4.0 ready" machines, systems and software marked Biesse for the big and small size companies which want to gain competitiveness through the optimization of their own design and manufacturing processes.

next November 17-19

more than

customers(+16% vs previous edition)

almost

the total amount of orders intake(more than 165% vs. previous edition)

Think4wardbecoming a 4.0 factory.

  • 01 Implementing lean production in order to fully satisfy customer requirements. increasing quality and reducing waste.
  • Understanding sector trends and deciding when and how to invest in order to grow. 02
  • Finding the best solutions ahead of competitors.03
  • Anticipatingcustomers' needs.

Think4wardcreating 4.0 factories for our customers.

Forward-thinking automation and software solutions to help our customers leverage the fourth industrial revolution.

  • Orders processed on the same day.
  • Custom-designed. integrated machines.
  • Streamlined. intelligent warehousing.
  • Impeccable quality and simplified processes without unnecessary costs.

Meeting tomorrow's demands today.

Summary / Guidance / Main Drivers

Summary

  • 9 months 2016 with a positive orders intake trend and backlog record level
  • 9 months 2016 with a strong sales increase (higher than the 15.4% increase at the end of the IH 2016)
  • 9 months 2016 with a net debt decrease vs the previous year

Guidance

  • Guidance for an higher net sales level
  • Guidance for an higher labourcost due to investments scheduled for the next two years that have been already brought forward (150 new jobs) leading to a slight decrease of profitability % (EBITDA & EBIT margin)
  • Guidance for an orders intake growth considering the last summer world fairs (Melbourne-Atlanta) results and the recent BiesseInside fate (Pesaro-Italy)

Drivers

  • Urbanization factor costructions & restructuring
  • Substitution cycle
  • Energy efficiency structural wood growing demand
  • Software integration & digitalization increase –Industry 4.0

Biesseat a glance

Orders intake

+13,4%*

Revenues

€ 436,4 mln (+19,5%*)

€ 170,0 mln (+16,5%*) Backlog

Employees

Group 3,509 (+15,9%)

Net debt

€ 16,7 mln (-35,3%*)

Market cap/e.p.s.

€ 386 mln - € 0,763

32

(*vs September 2015)

Biesseat a glance

Wood(world) market share

14,5%

(latest estimation 2015)

Glass & Stone(world) market shares

Glass(latest estimation 2015)

Stone(latest estimation 2015)

Mechatronic(world) market share

(latest estimation 2015)

Sales breakdown

Eastern Europe

Asia

Extract of the P&L


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  • IRES cut
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Net Sales

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Orders intake &Backlog

Value added

Labour cost

*including Uniteam people (nr. 57) People distribution (without interim people)

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*
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,

vs Sep 2015: +482 (15,9%) vs Dec 2015: +333 (10, 5%) vs Jun 2016: +50 (1,45%)

interim people at the end of Sept. 2015: 147interim people at the end of Sept. 2016: 2323,741

€/MILPeople distribution by main countries

People outside Italy: nr. 158218.6% in the european subsidiaries

Net Financial Position

Cashflow


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OperatingNet Working Capital


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0
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,

* calculated considering the full year revenues (2016 expected revenues)

Shareholders breakdown €/MIL by ownership/ main geographical areas

Italy is including the Selci family percentage (51%) As per Consob statement: no investor officially > 2%

Source:Bloomberg Biesse B.o.D:

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

UniteamS.p.A. acquisition

May 19th 2016Acquisition 100% UniteamS.p.A. Thiene (Vicenza)

Cost (paid by cash)2.1 Euro mln

2015 Uniteam turnover 11.4 Euro mln

Main activities

  • 3.4.5 axis CNC centers for the processing of furniture. doors. windows and stairs (wood)
  • 5 axis CNC centers for the processing of carpentry and wood structure (xlam/CLT wood/house)
  • 3.4.5 axis CNC centers for the processing of plastics. composites. aluminum and special alloys (automotive. biomedical. aerospace and nautical sector)

Orders backlog

20 mln/€ Order (already signed) for a line in England (estimated value 10.1 Euro mln) dedicated for structural wood/houses

+ ProductsWood

Outlook

Looking forward, we expect the market to continue grow at about 3,7 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 andin Italy. The most important of theseMarket are HOMAG (29% estimated market share) and SCM (7% estimated market share). Estimated worldwide market share 2015 Market Size

€3.3bnCUSTOMERS

Whole market potential

2015

+ ProductsGlass

Outlook

In the near future. we anticipate that the glass processing market will grow at about 3,7 times the reference sector average growth rate.

Competitors

We are currently the industry leader in the (Valencia)glass processing market in which we operate.

CUSTOMERS

Ciudad de las Artes y las Ciencias

+ ProductsStone

2015StoneMarket Size

Estimated worldwide market share 2015

Whole market potential €600mln

Outlook

Looking to the future, as the in the wood sector, we expect the market to continue to grow at about 3,7 times the reference sector average growth rate.

Market The competition in the current market is consolidated. We are among the leading Competitors companies in the sector and we intend to reinforce our positioning. Main competitors are located in France and in Italy and they are CMS, Bretonand Thibaut.

CUSTOMERS

55

"Bicefalo" marble sculpture MarmiFontanelli

+ ProductsMechatronics

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 recently entered the metal spindles sector. Our main competitors are from Germany. They are KESSLER, IBAG, GMN, MarketsCUSTOMERS , , WEISS (Siemens), FISHER PRECISE Estimated and STEP TEC. worldwide market share 2015

Market

Size

€1.1bn

Whole market potential (WAP + Metal + G&S)

2015

*Advanced materialsMarkets

  • Carbon FiberFoamComposite
  • Alluminium
  • Titanium

+ ProductsAdvanced Materials*

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 plastic processing machinery market is highly fragmented worldwide and there are not the Markets same number of companies as in the woodworking machines sector (CMS Industrie - Multicam – Flow Corporation). Estimated worldwide market share 2015 Market Size

€ 0.8 bln*Advanced CUSTOMERS materials Carbon Fiber Foam Composite Alluminium

Whole market potential

Titanium

2015Plastic

0.9

%

+ ProductsAdvanced Materials*

Think4ward

*Advanced

materialsCarbon Fiber

Foam

Composite

Alluminium

Titanium

Our successful entry into the plastic & advanced Targets Strategy in actions In the future, we will expand our materials sector confirms our capability to diversify into new sectors through our innovative Mechatronics Division and our consolidated expertise.

product offering in order to meet the needs of the entire market.

+ SolutionsService

Strategy in actionsThink4ward Our network supports our customers worldwide. Through Biesse Service and Biesse Parts, we offer technical services and machine/component spares to businessesanywhere in the world on-site. as well as on-line -24/7.

Our Service will evolve toService 2.0

  • %
  • Targets Proactivity: leave "break-and -fix" service logics in the past and move onto predictive services Spare Parts: encourage a 24/7 assistance / no down-time approach with maintenance contracts
  • Maintain excellence in terms of service levels

18.5

2018 Target incidence on Net Sales

+ SolutionsSystems

Targets Strategy in actions Think 4ward

We want to reinforce our positioning and increase our market share, becoming a leading company in the engineering solutions sector.

2018 Target incidence on Machine Sales

+ SolutionsbSuite

Challenging market standards.

bSolid is a 3D cad cam software application

bNest

bEdge is a bSuite plug-in, seamlessly integrated for edgebanding planning.

bWindows is a seamlessly integrated plug-in for the planning of windows/door frames.

is the bSuite plugin specifically for nesting operations.

bProcess is the tool that allows in a simple and intuitive way to organize production for a cell of machines.

bCabinet is the bSuite plugin for furniture design.

+ BCXNear tocustomersOverseas

The production abroad is constantly growing in India

BCx

01

02

Local4Global: we want to increase the percentage of production exported worldwide from Asian production sites.the Chinese and Indian facilities.

We want to continue increase our production in

& China. 2018 Target 20 %

production abroad quote

Ebitda

Net Debt

OperatingNet Working Capital

Capex

Value added

Ebit

Labour cost

Receivables - Payables - Inventories

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 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.

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