Biesse — Investor Presentation 2016

Sep 6, 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.

business divisions

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 (June 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

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

Systems

Products

02

WOOD

PLASTIC

Machines

01

04

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

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

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

EBITDA

55,1

€/mln

EBIT

493,2 €/mln Order Intake

75,8 €/mln

+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/€

+4

New Local

Branches

Revenues in ASIA in 2016 +26,7 mln/€

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

8.000 Demos in 2016

47

Feeling the products

Discovering our factories

HSD: a 4.0 factory Manufacturing Lab Training Academies

New plants

4.0 factory

Worldwide shows

Exhibitions

56

4

Inside events

one2one events & Tech Tour

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

03 Production

04 Shape & Installation Software

Materials Innovation

Digital Manufacturing Machines

Industry 4.0

Service

going towards the Service 2.0

proactivity: from the "break-and-fix" to the proactive service

spare parts: 24x7 assistance / no down time – maintanance contracts – spare parts inventories with more than 8.000 parts

training: dedicated traning of the Biesse engineers and dealers

Sophia

SERVICES OPTIMIZATION PREDICTIVITY HUMAN INNOVATION ANALYSIS

Sophia is a business solution - a connected asset management - that Biesse developed to create more value for the customers improving the productivity and the operative efficiency decreasing the costs.

Sophia -actually offered inside the IIoT service- is a solution for the customers through the Cloud platform Machine Knowledge Center.

Roadmap

the SOPHIA solution has been already presented during the last LIGNA fair regarding the IIoT service for the Rover (wood) machineries

Starting from the next Biesse Inside (October 2017):

-enlarge the geographical perimeter (wave 1 -2-3-4) even extending the machineries models (edge banding, sizing and inserting) . see the roadmap below

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)

59

Wood - Targets Where we want to go / More Products

Wood 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)

61

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

63

share 2016

worldwide market

Market Size

Estimated

2016

Glass

Whole market potential €880mln

Where we want to go / More Products Stone - Market

2016 Stone Market Size

Estimated worldwide market share 2016

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 3.9 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

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

NEW DEALS

2 small acquisitions for Intermac

Where we want to go / More Products Glass & Stone

Movetro s.r.l .

controlled since the end of July for its know -how, quality and design in manufacturing automated systems, for storing and handling glass flat panels .

Montresor & C. s.r.l .

acquired between July and August, the company is a market leader in edge polishers machinery with a very strong technological components . With its know -how the company can reach customers in marble, granite, porcelain and synthetic/advancedmaterials .

Both acquisitions will enable Intermac (the Biesse dedicated brand) to increase its 4 . 0 . solutions enlarge the products gamma offering automated and integrated turnkey plants to larger customers

Where we want to go / More Products Mechatronics - Market

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.

*Advanced materials

Carbon Fiber Foam Composite Alluminium Titanium ⁶⁸

Estimated

2016

share 2016

worldwide market

Market Size

Whole market potential

(WAP + Metal + G&S)

€

0.7bn

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 positioning in the Wood- Aluminum- Plastic (WAP) sector

02 Reinforce the partnership with our current customers

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

Where we want to go / More Products Advanced 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 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.

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

Marine

Visual communication 71

application

Defense and Ballistics

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. 75 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.

77

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.

79

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.

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

Our present in figures – IH 2017

Orders

Sales breakdown

Results breakdown

Revenue

Profit

O.N.W.C.

Cash

People

Shareholders

orders intake & backlog

Extract of the P&L – IH 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IH 2016	IH 2017
Net sales year -1	378.4 -1.2%	427.1 +12.3%	513.1 +21.5%	618.5 +19.1%	283.4 +15.4%	331.2 +16.9%
Value added %	143.5 37.3%	163.1 33.6%	212.4 40.3%	252.4 40.8%	116.4 41.1	139.1 42.0%
Labour cost %	112.7 23.8%	128.2 30.0%	148.2 28.6%	176.6 28.6%	86.0 30.3%	98.3 29.7%
EBITDA %	30.3 8.2%	40.3 3.6%	64.1 12.4%	75.8 12.3%	30.4 10.7%	40.8 12.3%
EBIT %	18.1 4.8%	26.5 6.2%	43.8 8.4%	56.3 8.1%	20.9 7.4%	29.6 8.9%
Net Result %	4.3 1.1%	13.8 3.2%	21.1 4.1%	29.5 4.8%	12.0 4.2%	17.5 5.3%
				tax rate	43.2%	37.2%

Sales breakdown- June 2017

by main geo

-area

72,9% 15,5% 14,0% 1,9% 3,1% -7,4%

Wood Glass & Stone Mechatronics Tooling Components Elisions

Wood Glass & Stone Mechatronics Tooling Components Elisions

by business division

IH 2017 vs IH 2007

												€/mln	IH 2017	…….	IH 2007
												Net sales year -1	331.2 +16.9%		226.6 +28.2%
	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017e	Value added	139.1		92.4
net sales	466.0	454.3	268.0	327.5	388.5	383.1	378.4	427.1	519.1	618.5	676.3	%	42.0%		40.8%
	17.5%	-2.5%	-41.0%	22.2%	18.6%	-1.4%	-1.2%	12.9%	21.5%	19.1%	9.3%
labour cost	-103.9	-110.9	-92.8	-107.7	-115.6	-116.3	-112.7	-128.2	-148.2	-176.6	-201.0	Labour cost %	98.3 29.7%		53.0 23.4%
	-22.3%	-24.4%	-34.6%	-32.9%	-29.7%	-30.4%	-29.8%	-30.0%	-28.6%	-28.6%	-29.7%
EBITDA	79.1	57.3	-8.4	15.7	22.4	25.0	34.3	39.6	64.1	75.8	83.3	EBITDA	40.8		41.0
	17.0%	12.6%	-3.2%	4.8%	5.8%	6.5%	9.1%	9.3%	12.4%	12.3%	12.3%	%	12.3%		18.1%
EBIT	65.4	35.7	-32.9	0.1	5.7	0.3	18.1	24.8	43.7	55.1	60.6
	14.0%	7.9%	-12.3%	0.0%	1.5%	0.1%	4.8%	5.8%	8.4%	8.9%	9.0%	EBIT	29.6		33.5
net result	41.7	20.2	-27.3	-5.7	-2.4	-6.5	6.4	13.8	21.1	29.5	37.8	%	8.9%		14.8%
												Net Result	17.5		19.4
												%	5.3%		8.6%

tax rate 37.2% 42.0%

Net Financial Position– first half trend

IH 2016

IH 2009 IH 2010 IH 2011 IH 2012 IH 2013 IH 2014 IH 2015 IH 2017

Operating Net Working Capital IH 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IH 2016	IH 2017
Inventories % net sales	22.8%	23.0%	21.5%	21.1%	48.1%	43.8%	DSI 171 days
Receivables % net sales	20.1%	18.3%	20.3%	20.8%	41.3%	35.7%	DSO 54 days
Payables % net sales	23.4%	28.8%	23.5%	31.1%	68.7%	62.0%	DPO 124 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 20.7% half year	72.7 17.5% incidence	target incidence <12%

Cashflow IH 2017

€/mln	FY 2013	FY 2014	FY 2015	FY 2016	IH2016	IH 2017
Gross Cashflow % net sales	52.1 13.8%	38.3 3.0%	46.3 8.3%	46.6 7.5%	22.4	18.1
Investments % net sales	-13.3 5.2%	-20.8 4.3%	-25.2 4.3%	-32.0 5.2%	-13.2	-16.5
Net Cashflow %	32.3 8.5%	17.5 4.1%	21.1 4.0%	- 14.6 2.4%	9.2	1.6
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	-9.8	-10.3
delta Net debt	+32.3	+12.7	+11.3	4.8	-0.6	-8.7
NET FINANCIAL POSITION	-23.3	-11.2	0.1	4.9	-0.5	-3.8

People distribution					(without interim people)
	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	June 2016	June 2017
Production % of total people	365 41%	1250 46%	1265 45%	1175 44%	1201 42%	1335 42%	1482 41%	1414 41%	1494 40%
Service & After sale % of total people	568 24%	577 21%	574 21%	613 22%	628 22%	630 22%	803 22%	777 22%	867 23%
R&D % of total people	233 12%	316 12%	338 12%	321 12%	361 13%	383 13%	436 12%	416 12%	447 11.8%
Sales & Marketing % of total people	340 13%	361 13%	364 13%	351 13%	433 15%	435 15.6%	587 16%	548 16%	631 16.7%
G & A % of total people	202 3%	233 3%	242 3%	235 3%	252 3%	273 3%	310 8.5%	304 9%	332 8.8%
ITALY % of total people	1660 70%	1656 61%	1646 53%	1547 57%	1605 56%	1780 56%	2.009 56%	1903 55%	2108 55%
OUTSIDE ITALY** % of total people	708 30%	1081 33%	1136 41%	1148 43%	1276 44%	1336 44%	1.609 44%	1556 45%	1663 45%
TOTAL	2368	2737	2782	2635	2881	3176	3.618	3,459	3,771 +9%

People distribution

	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	June 2016	June 2017
ITALY % of total people	1660 70%	1656 61%	1646 53%	1547 57%	1605 56%	1780 56%	2009 56%	1903 55%	2108 56%
OUTSIDE ITALY** % of total people	708 30%	1081 33%	1136 41%	1148 43%	1276 44%	1336 44%	1609 44%	1556 45%	1663 44%
TOTAL	2368	2737	2782	2635	2881	3176	3618	3,459	3,771

vs dec 2016: +153 without interim people (+4.2%) (+90 Italy +54 Subsidiaries)

IH 2017: 3,771

without interim people

IH 2017: 3,964

with interim people

interim people at the end of December 2016: 191 interim people at the end of June 2017: 193

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)

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 ,

102

Capex: intangibles continue our growth path through investments

ERP Oracle sales, distribution and services Product Lifecycle Management Internet Of Things Customer Relationship Management Manufacturing Execution System servitization nicim manufacturing ms office 365 - internal social employees salesforce.com teamcenter - siemens Industry 4.0

Collaboration Communication Co -sharing

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%	104

*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

People evolution

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

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

Increase by countries

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

114

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.
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A. Amurri Investor Relator Manager 0039 0721 439107 0039 335 1219556