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Biesse

Investor Presentation Feb 26, 2016

4501_rns_2016-02-26_a23ae5ab-c689-417d-beeb-23b6310a38ca.pdf

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Our customers definethe world shape, we make it possible.

2016-20183-Years Business Plan

mainindex

page 2-6 : Group descripion – purposes & beliefs

page 7-18: who - how – where – with – innovation – reliability – sustainability

page 19-22: excellence – more revenue – more profit – more cash

page 23-28: business model (production/delivery/products) – customers

page 29-61: strategy (wood/glass & stone/mechatronics)

page 62-68: the future in figures

page 69-87: annex

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.

2

2016-2018 3-Years Business Plan

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.

We shape our Customer dreams.

Our Purpose

Since 1969, we have tirelessly dedicated ourselves to creating value for our customers first and foremost.

"…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".

Founder and CEO

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.

2016-2018 3-Years Business Plan

the Map

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*

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.

industrial group

1

business divisions

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 than200

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

We

Our Human capital.

more than3,150

employees throughout the world (temporary workers included)

3-Years Business Plan 2016 - 201813

ReliabilityInnovationSustainabilityExcellence

Our values/

Innovationmeets creativity. 2016-2018 3-Years Business Plan

Our pillars to mastering innovation:

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

Biesse, the perfect combination of innovation and italian creativity.15

Our values/

Innovation

generates

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

Partners

Trusted & Loyal Winning & Committed Growing & Qualified Employees

OUR MAIN PRINCIPLES

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

2016-2018 3-Years Business Plan

Investors

Our values/ 2016-2018 3-Years Business Plan

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.18

2016-2018 3-Years Business Plan

for a consistent growth.

OurBusiness Model key points 1.3

We makeTop-quality Italian products

We deliver top-quality, dedicated solutions worldwide

KnowledgeDeliveryProductsCustomers

Knowledge

Our Business Model / Global presence and network

2016-2018 3-Years Business Plan

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.

Tooling

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

Mechatronics

2016-2018 3-Years Business Plan

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

03

PLASTIC

Our Business Model /

Ourmain customers

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27

producers

Our strategy in action

We reinforced our industry-leading position, increasing our market share in the actual products segment.

We successfully introduced electrospindlesmachine tools for metals

.We enhanced our product offering and became more competitive on the market.

We successfully transferred our product knowledge to the new business unitand achieved great results.

2016-2018 3-Years Business Plan

Wood Division Estimated CAGR 2015-2018

10%

12

9%

Mechatronics Unit Estimated CAGR 2015-2018

G&S Division Estimated CAGR 2015-2018

4%Market Estimated CAGR 2015-2018

5%Market Estimated CAGR 2015-2018

7%Market Estimated CAGR 2015-2018

78%

Plastic & A.M. Division Estimated CAGR 2015-2018

Our strategy in actionThink4ward

1

Enhance R&D for innovative solutions (technologies and new materials) 2016-2018 3-Years Business Plan

02

0

03

9

%

Expand the product range: renovation and completion of the range of machines

Improve product reliability, renew existing product range

Wood Division Estimated CAGR 2015-2018

4%

Market Estimated CAGR 2015-2018

+ ProductsWood

Market

2015

Market

Size

Whole market potential

€3.3bn

share 2015

2016-2018 3-Years Business Plan

34

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 theseare HOMAG (29% estimated market share) and SCM (7% estimated market share). Estimated worldwide market

CUSTOMERS

+ ProductsGlass & Stone

Strategy in actionsThink4ward

Targets

Maintain and reinforce our leading position in the glass sector

Expand our offering in new product segments

03

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

G&S Division Estimated CAGR 2015-2018

7%

2016-2018 3-Years Business Plan

Market Estimated CAGR 2015-2018

+ 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.

Main competitors are located in Italy and they are CMS, Bottero, and Hegla.

CUSTOMERS

+ ProductsStone

2016-2018 3-Years Business Plan

"Bicefalo" marble sculpture MarmiFontanelli

43

Market The competition in the current market is consolidated. We are among the leading Competitors 2015Stone€600mln Estimated worldwide market share 2015Market Size

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.

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

Whole market potential

+ ProductsMechatronics2016-2018 3-Years Business Plan

4Strategy in actionsThinkward

Targets

01

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

02

Reinforce our partnership with our current customers

03

Diversify into other sectors, continuing to expand our presence in the metal sector and replicating our WAP standards of excellence in new sectors

5

10%

Mechatronics Unit Estimated CAGR 2015-2018

Market Estimated CAGR 2015-2018

%

FocusStrategy in numbersMetal Sector 5,6 mln/€ 2015 target

15mln/

2018 target in metal sector

6,7 mln/€ 2015e Result

2016-2018 3-Years Business Plan

+19,7%

36

on target

Our expansion in the metal segment has shown that we have the capabilities to successfully extend our areas of competence and compete in new sectors.

We will continue to invest in R&D in order to identity new product expansion opportunities in other sectors.

Targets

2016-2018 3-Years Business Plan

37

+ 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.

Markets 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, Competitors , , WEISS (Siemens), FISHER PRECISE Estimated and STEP TEC. worldwide market share 2015

MarketSize

2015

*Advanced materialsCarbon FiberFoamComposite

AlluminiumTitanium

Whole market potential €1.1bn

(WAP + Metal + G&S)

CUSTOMERS

Competitive

Offering

Biesse Group directly designs and manufactures all high-tech components for its machines. Through our Mechatronics Unit, we guarantee our technological independence.

The vocation of our Mechatronics Unit is continuous innovation. Until a few years ago, our business activity was focused on creating and selling mechanical components.

Competitive Advantage Offering structure Now, we create and sell smart devices and smart mechanical components Our devices interact with the machinery to support predictive logics with regard to functionality, performance and preventive maintenance of the machines, and of the factory as a whole.

Our product reliability,

Our technologically-advanced offering, Our ability to introduce innovation into the market -These are our Competitive Advantages.

Sector

Diversification

Offering structure

Our Mechatronics Division is the trailblazer for expansion into new sectors.

We successfully entered the advanced materials* & plastic processing machinery sector, thanks to our dedication to constant innovation.

Through our capability to create top-quality solutions, we also successfully entered the metal electro-spindles sector.

Our Mechatronics Division is the key to breaking into new sectors and diversifying our business.

Offering

*Advanced materialsCarbon FiberFoamCompositeAlluminiumTitanium

Product

Offering structureInnovation

Offering

0

0

2

1

We Combined 2 Axis Heads and Direct Drive Technology

  • improved working precision due to the absence of mechanical stress
  • improvedpositioning speed
  • extendedreliability.

We will introduce new electro- spindles models to enhance our offering in the metal sector

  • Medium size spindles
  • Large size spindles

+ ProductsAdvanced Materials*

Strategy in actionsThink4ward

*Advanced materialsCarbon FiberFoamCompositeAlluminium

Targets

Titanium

3 mln/€ 2015 target

mln/€ 2015e result

2016-2018 3-Years Business Plan

%

44

Our successful entry into the plastic & advanced materials sector confirms our capability to diversify into new sectors through our innovative Mechatronics Division and our consolidated expertise.

In the future, we will expand our product offering in order to meet the needs of the entire market.

2018e target

2016-2018 3-Years Business Plan

+ ProductsAdvanced Materials*

Markets The plastic processing machinery market is highly fragmented worldwide and there are not the Competitors 2015Plastic0.9%Whole market potential € 0.8 bln *Advanced CUSTOMERSmaterialsCarbon FiberFoamCompositeAlluminiumTitanium

Outlook

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

same number of companies as in the woodworking machines sector(CMS Industrie - Multicam – Flow Corporation).Estimated worldwide market share 2015 Market Size

+ Solutions2.22016-2018 3-Years Business Plan

Our strategy in action

We are continually strengthening our services worldwide. We continue to invest in the training of our engineers, in order improve the level of service we deliver

We have successfully adopted a Lean Production approach, and have implemented an order management system which covers each stage, from sales to installation.

We have successfully developed new tools to satisfy the majority of our customers' software requirements with a single, integrated solution.

2016-2018 3-Years Business Plan

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

To increase our market share in the system solutions market.

To begin to profit from software fees on a yearly basis.

+ SolutionsService

Targets

4Strategy in actionsThinkward 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

  • 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%

2016-2018 3-Years Business Plan

2018 Target incidence on Net Sales

+ SolutionsSystems

Targets

4Strategy in actionsThinkward We want to reinforce our positioning and increase our market share, becoming a leading company in the engineering solutions sector.

65mln/€ 2015e results

2016-2018 3-Years Business Plan

2018 Target incidence on Machine Sales

+ SolutionsSystems2016-2018 3-Years Business Plan

Strategy

0

0

0

1

2

3

Offering

Biesse Systems is a team of sector experts, capable of understanding and anticipating business needs, who work with the customer from inception through to system installation and testing.

From engineering to the manufacturing, from the installation to the after-sales support, we are able to realize complete solutions for our Clients.

Ensure dedicated and highly-specialized services with key accounts for 360-degree customer management

Enhancing our offering of flexible systems

Boost our sales and after-sales approach

Targets

  • Solutions

Consolidation, reliability and rationalization. Superior technology for creating synergies in machine automation.2016-2018 3-Years Business Plan

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.

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

%

Potential Software Fees contribution to Net Sales 51

+ SolutionsbSuite

bSuiteOfferingOffering structurePlatform

bPlatformChallenging market standards.

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.

bNest 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.

Biesse Customer Experience2016-2018 3-Years Business Plan 2.3

Our strategy in action

Our clients are makers:

companies that build houses, companies that build furniture, companies that build windows,

companies that buildthe shape of the world.

+ BCXClose to our customers

We want to strengthen our dealer network –this is crucial in helping us to engage our clients.

BCx

Trade

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

Increasemarket share

Hire dedicated resident key account managers &skilled sales force

2016-2018 3-Years Business Plan

54

Focus on growing customers through a production upgrade

04 Strengthen the dealer network and increase the integration

Subsidia+ BCXClose to our customersSubsidiary

We will continue to expand our global presence - we want to be close to our customers.

BCx

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

Create 3new Clusters of business:

Create 3new Clusters of business:DACH (Germany-Austria-Switzerland)

2016-2018 3-Years Business Plan

55

  • Turkey/ Middle East
  • China/Far East Asia

3New more "aggressive" Sales Matrix

04

0

0

0

1

2

Invest in human resources and capabilities as growth drivers

+ BCXNear tocustomers

Overseas

The production abroad is constantly growing in India& China.

BCx

We want to continue increase our production in 01the Chinese and Indian facilities.

2

0

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

%

562018 Target 20 production abroad quote

2016-2018 3-Years Business Plan

+ BCXFeeling the products

In order to create a 360-degree experience for our customers worldwide, we have designed a roadmap that will help us to increase brand awareness, engage our customers and improve the Biesse customer experience.

BCx

Biesse Headquarter Showroom 2.0

Continue to improve our Showroom, increase the number of events, demos and "Insider"-dedicated events held.

2016-2018 3-Years Business Plan

Worldwide Showroom plan

Improve and strengthen existing showroom events andmeasure their impact on the local market.

6.600m2 Headquarters Showrooms (wood + glass & stone) 13.000m2 Showrooms worldwide 57

+ BCXFeeling the products

We want our customers to see how our products work. We want our customers to touch our products, to understand how they can satisfy their needs. We want our customers to live the Biesse Experience.58

Main fairs and events worldwide

We must be forever present in our sector, and ensure that we are the best.

2016-2018 3-Years Business Plan

Dedicated in-house events

Increase the number of events on specific materials for specific audiences ("Made In Biesse")

We want to show our incredible solutions around the world.

+40Fairs and

exhibits worldwide

+ BCXFeeling the products

By demonstrating the perfect functionality of our products and engaging our customers through training and events, we will spread the Biesse Experience worldwide.59

BCx

Regional Marketing

Nominating "Best Dealers" and "Best Customers" is another way to engage our entire customer base and show how our products work locally through trade shows, dealer openhouse events and Tech Tour plan.

2016-2018 3-Years Business Plan

Academy Days

Customers and dealers taking part in training on Biesse taking in training Products, and how they can exploit the full potential of these.

We want to engage our customers with dedicated events on specific materials.

Demos per Year

+ BCXTotal Care

Our Total Care package not only contributes to building long-term relationships with our customers – it also exceeds the standards of the packages offered within the industries in which we operate.

Total Care is a multi-year Warranty and Financial Plan currently testing in UK and Canada.

Customer Experience

Total Care is definitely not a 'marketing tactic' –it is a long-term strategy designed to make dealing with Biesse an easy, enjoyable and rewarding experience.

01

02

03

04

05

Peace of Mind Total Care enables customers to run their business. Cover for preventive maintenance, breakdowns and even damage due to operator error are all included.

Confidence Our multi-years warranty is based on our excellent machine reliability statistics.

Investment The cost of ownership and the risks normally associated with purchasing and operating capital plants are minimized.

Protection

At the end of the 5-year plan, customers can decide to upgrade to a new machine, and the original machine is placed on the second user market, with the benefits of a full service history and increased value.

+ BCXPredicting your needs

BCx

We makeSmart Factoryof our Customers.61

2016-2018 3-Years Business Plan

We offer innovative solutions with high levels of flexibility, not only thanks to our production logic, but also the ability of our machines to adapt to customer requirements in accordance with the increased availability of information(IoT).

The Internet of Things, transformed from a simple resource to a central element of the Customer Value Chain.

In 2013 we were the first to introduce smart devices to the Wood -Aluminum –Plastic (WAP) sector.

Our working approach evolved from a break-and-fix logic to a more advanced, predictive logic.

Now we want todrive our Customer into the Future.

Continuing to pursue organic

  • Same perimeter
  • Increasing our sales force, agents and distributors worldwide
  • Growing not only in the woodworking machine sector, but also in the areas of glass, stone and mechatronics
  • Continuing to diversify into new sectors: advanced materials* and metal working

More Revenue

Group order intake &backlog

Continue to increase our sales. 3-Years Business Plan 2016 - 2018

  • 2015: Group orders orders intake +17,8% (vs. the same period 2014)
  • 2015: Group backlog December 2015 +21,5% (vs. the same period 2014)

More Profit

Ebitda

Continue to increase generation of value. 3-Years Business Plan 2016 - 2018

  • Decreasing incidence of COGS on Net Sales through footprint optimization and
  • Maintaining Labour Cost incidence on Net Sales below 29%
  • Maintaining Overheadincidence on Net Sales below 20%

More Cash

Net Debt

3-Years Business Plan 2016 - 2018

Continue to generate a positive cash

  • Starting from Zero Net
  • R&D around 5% of Net Sales
  • 2016 investing Cash Flow on CAPEX to support our growth forecast

More Cash

OperatingNet Working Capital

Continue to strictly controlour Operating Net Working Capital.

  • Maintaining Operating Net Working Capital incidence on Net Sales well below 14%
  • Maintaining our Group inventories below 22% incidence on Net Sales
  • Maintaining our Group DSOaround 60 days
  • Maintaining our Group DPOaround 110 days68

Capex

3-Years Business Plan 2016 - 2018

our growth path.

2016 Main Investments drivers

  • Indian Manufacturing Site Expansion (+10.000m2)
  • Chinese Production Site Lean Manufacturing Adoption
  • Mechatronics Italian new plant for R&D and production (10.000m2)
  • R&D constant investment, around 5% on net sales every year
  • Wood machinery production site enlargement & maintenance capex

3-Years Business Plan 2016 - 2018

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3-Years Business Plan 2016 - 2018

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3-Years Business Plan 2016 - 2018

Value added

3-Years Business Plan 2016 - 2018

Labour cost

3-Years Business Plan 2016 - 2018

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3-Years Business Plan 2016 - 2018

Receivables - Payables - Inventories

World GDP

3-Years Business Plan 2016 - 2018

3-Years Business Plan 2016 - 2018

Annex

Furniturebreakdown

3-Years Business Plan 2016 - 2018

Reference markets: Housing

3-Years Business Plan 2016 - 2018

Reference markets: Furniture

More Revenue

3-Years Business Plan 2016 - 2018

%

Reference Market Housing - Furniture

3-Years Business Plan 2016 - 2018

15.0Housing - furniture

5.0

0.0

-15.0

-10.0

-5.0

10.0

Annex

correlation index 85

Housing - furniture

average growth rate(historical basis)

* world"furniture" 2016-2018: +2,9%world"new housing residential" 2016-2018: +2,9%world furniture & housing average 2016-2018: +2,9%

3-Years Business Plan 2016 - 2018

Annex

Acimall & Ucimu

Italian associations

«During the year that has just ended, we saw an increase in production of 7.2%, once again characterized by a growth of the export sector to the tune of 6.8%. A positive result was also achieved by the domestic sector, which is clearly recovering from the recent challenges suffered.With regard to expectations for 2016, Acimall anticipates a growth of between 5-10%, conditioned, as ever, by the results of the planned policies of incentivization».

Italian woodworking machineries & toolsmanufacturers associationPress release dated December 16th, 2015 - Extract

«Excellent results were seen for the year 2015, with an increase in production of 12.2%, while consumption of machine tools increased by 31.3% compared to 2014. This was driven in particular by domestic demand, which increased by 45.4% (again compared to the results achieved in 2014) . For 2016, welcomed by many as a good year for the Italian manufacturing industry, an increase in production of 7.2% is anticipated, with particular emphasis on the export sector, which is up by 6.6%. As with other production segments, the contribution expected in the wake of the proposed tax relief legislation (tax incentives) is a decisive factor».

Italian machines tools, robots and automation manufactures associationPress release dated December 15th, 2015 - Extract

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