Biesse — Investor Presentation 2020

Dec 10, 2020

COMPANY PRESENTATION

DECEMBER 2020

OUR IDENTITY

OUR VALUES

Biesse Group is a global leader founded in Pesaro in 1969 by Giancarlo Selci. Listed on the Borsa Italiana since 2001 – STAR The Group has a strong Italian identity and strongly believes in:

segment. INNOVATION INTEGRITY PROACTIVITY

THE VISION

Biesse Group's vision is embodied by the word THINKFORWARD:

LOOK AHEAD A STIMULUS TO ANTICIPATE THE FUTURE AND SETTING NEW STANDARDS TO DRIVE TECHNOLOGICAL INNOVATION AND DIGITAL TRANSFORMATION.

ONE INDUSTRIAL GROUP

4 MAIN BUSINESS DIVISIONS

12 PRODUCTION SITES

We manufacture technology for processing wood, glass, stone, advanced materials and metal through specialised business units and 12 manufacturing sites in Italy and worldwide. We operate worldwide with our own key brands: Biesse, Intermac, Diamut, HSD.

ALL OVER THE WORLD

We support our colleagues all over the world, using the most advanced management, sales and support systems. Our global network enables us to be always close to our customers.

39 SUBSIDIARIES AND REPRESENTATIVE OFFICES

DISTRIBUTORS

+300 SELECTED

SUPPORTING OUR CUSTOMERS

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

120 COUNTRIES

WITH OUR PEOPLE < 4k

We acknowledge that people are essential to our development, because the ability to innovate and pursue excellence in the realisation of products is the consequence of the passion and dedication of all those that are part of the Biesse family.

EMPLOYEES*

* temporary workers included

SUSTAINABILITY

PLANNING FOR A MORE SUSTAINABLE FUTURE

All activities are carried out in recognition of the moral and social responsibilities that we have towards our stakeholders, in the belief that the achievement of sales objectives cannot overlook our values of honesty, integrity, fair competition and correctness in dealings with all our stakeholders, including shareholders, customers, employees, suppliers and local communities.

CSR HIGHLIGHTS

ECONOMIC SUSTAINABILITY

More than

300

persons involved in R&D activities

89%

of purchases by our manufacturing plants in Italy, India and China come from local suppliers

SOCIAL SUSTAINABILITY

95%

of employees have permanent contracts

+100K

hours of training provided to personnel during the course of 2019

ENVIRONMENTAL SUSTAINABILITY

photovoltaic panels installed compared to the previous year

of waste products are non-hazardous

2020 MAIN TARGETS

REDUCTION OF THE EMISSION IN THE ATMOSPHERE

-40% CO2 at least

* Through strategies of carbon footprint reduction aimed at utilising energy from renewable sources combined with energetic efficiency.

*C02 scope 2 market based

2020 MAIN TARGETS

ISO 45001

CERTIFICATION OF THE HEALTH AND SAFETY SYSTEM FOR BIESSE SPA

Biesse Spa has started the process of formalization and certification of the health and safety system in accordance with ISO 45001 international standards.

CUSTOMERS/SECTORS

CUSTOMERS/SECTORS

CUSTOMER SALES

>67,000

An extremely wide and fragmented customer base with no risk of concentration. From small manufacturers to medium/large industries.

CUSTOMERS

extremely wide and fragmented customer base with low risk of concentration

95

Small-medium companies

n° of Clients

Large industries

Sales per Client

SALES BREAKDOWN

STRATEGY RECAP

STRATEGY

In the next 3 years, Biesse's strategy will be focusing on four main directives: the strengthening of our offering through Digitalisation and Product Innovation supported by the reorganization of the Company's processes and the extension of our sales network.

BIESSE SMART FACTORY

THE MARKET EXPECTS

Solutions that allow manufacturing companies of the fourth industrial revolution to evolve technologically, combining human skill and experience with total production automation and interconnectivity.

BIESSE RESPONDS

with advanced technologies and services that can digitalise and automate factories and production processes, optimising all their main assets - whether technological, strategic, organisational or human.

SOPHIA: SMART FACTORY ENABLER

Digital transformation

The use of Artificial Intelligence solutions and IoT technologies enable our clients to remotely activate and manage their manufacturing systems.

Biesse responds to the future

SOPHIA is a central hub of services connected to machines. The future objective is to evolve the platform into a centralised coordinator of services based on Artificial Intelligence.

Smart Objects

Internet of Things

Machine Learning

"Focus on your work, Sophia takes care of the rest".

SOPHIA RESULTS

>2,000

Connected Machines by SOPHIA in 2019

>50,000

Carts Created on Parts, the Online and in-app SOPHIA Marketplace

1Hour

With SOPHIA the average response time for a machine downtime ticket is 1 hour in 80% of cases

of Customers in Italy and 70% worldwide have renewed the service

SOPHIA TARGETS

Spare Parts order on SOPHIA Marketplace (Parts) by 2022

Route to the future

Digital innovation creates the future: an inevitable process, that is yet to be developed in machinery industry. SOPHIA paves the way for the future of Industry 4.0, starting now.

Number of SOPHIA packages sold with new machines and renewal 2018-2022

CORE SEGMENTS MARKET 2019

We are in leading positions in our reference markets: Wood, Glass, Stone working machines. We want to consolidate our positioning fostering product innovation Entire market

in the sector.

the glass processing market in which we operate.

the stone market in which we operate.

NEW SEGMENTS MARKET 2019

We entered in new market segments, we want to continue to increase our market penetration.

STRUCTURAL WOOD

Our competitors are mainly located in Germany and in Italy. The most important are Hundegger (market leader), HOMAG and Weinmann.

METAL (MECHATRONICS)

Our main competitors are KESSLER, IBAG, GMN, WEISS (Siemens), FISHER and STEPTEC.

ADVANCED MATERIALS

Highly fragmented market, our main competitors are Geiss, Belotti CMS Industrie, Breton, Mecanumeric, and Multicam.

IIIQ 2020

EXTRACT OF THE P&L

€/mln	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	9 months 2019	9 months 2020
Net sales -1 year	427 +12.9%	519 +21.5%	618 +19.1%	690 +11.6%	741 +7.4%	705.9 -4.8%	511.1	396.4 -22.4%
Cost of goods sold	171 40.1%	206 39.7%	245 39.6%	270 39.1%	295 39.9%	286 40,6%	236.8 46.3%	191.9 48.4%
Labour & Overhead	219	253	301	335	359	350	163.3	136.2
cost	51.3%	48.7%	48.7%	48.6%	48.5%	49.6%	31.9%	34.3%
EBITDA*	40	64	76	89	93	77	57.1	37.5
%	9.3%	12.4%	12.3%	12.9%	12.5%	10.9%	11.2%	9.5%
EBIT*	25	44	55	64	64	30*	29.4	10.2
%	5.8%	8.4%	8.9%	9.2%	8.6%	4.2%	5.7%	2.6%

*before non recurring items

NET DEBT

€/mln

30

OPERATIVE NET WORKING CAPITAL BY QUARTERS

RECEIVABLES – PAYABLES

ORDERS INTAKE & BACKLOG

GROUP ORDERS INTAKE & BACKLOG 2020 Sept. Group orders Intake 9 months -21.3% (vs 2019)

o IQ 2020 -24.7% vs IQ 2019

machines only

STAFF DISTRIBUTION

EMPLOYEES DISTRIBUTION

	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	Sept 2020
ITALY % of total people	1,646 59%	1,547 57%	1,605 56%	1,780 56%	2,009 70%	2,176 57%	2,483 59%	2,418 62%	2,398 63%
OUTSIDE ITALY % of total people	1,136 41%	1,148 43%	1,276 44%	1,396 44%	1,609 44%	1,670 43%	1,744 41%	1,509 38%	1,350 36%
TOTAL	2,782	2,695	2,881	3,176	3,618	3,846	4,227	3,927	3,748

interim people at the end of September '20: nr 232 (interim people March '20: nr 298 – interim people June '20: nr 248)

total Group including interim people = nr. 3,980

	FY 2019	Sept 2020	%
Production	1,386	1,300	-6,20%
Service & After Sales	992	968	-2,42%
R&D	482	481	-0,21%
Sales & Marketing	685	636	-7,15%
G&A	382	363	-4,97%
ITALY	2,418	2,398	-0,83%
OUTSIDE ITALY	1,509	1,350	-10,54%
TOTAL	3,927	3,748	-4,56%

EMPLOYEES DISTRIBUTION (without interim people)

	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	SEPT 2020
Production	1,264	1,175	1,201	1,335	1,482	1,494	1,621	1,386	1,300
% of total people	45%	44%	42%	42%	41%	39%	38%	35%	34%
Service & After sale	574	613	628	690	803	894	1,001	992	968
% of total people	21%	22%	22%	22%	22%	23%	24%	25%	25%
R&D	338	321	361	383	436	479	501	482	481
% of total people	12%	12%	13%	13%	12%	12,5%	12%	12%	12%
Sales & Marketing	364	351	439	495	587	641	715	685	636
% of total people	13%	13%	15%	15%	16%	17%	17%	17%	16%
G&A	242	235	252	273	310	338	389	382	363
% of total people	9%	9%	9%	9%	8,5%	8,8%	9%	10%	9%
ITALY	1,646	1,547	1,605	1,780	2,009	2,176	2,483	2,418	2,398
% of total people	59%	57%	56%	56%	56%	56%	59%	62%	63%
OUTSIDE ITALY	1,136	1,148	1,276	1,396	1,609	1,670	1,744	1,509	1,350
% of total people	41%	43%	44%	44%	44%	44%	41%	38%	37%
TOTAL	2,782	2,695	2,881	3,176	3,618	3,846	4,227	3,927	3,748

37

COVID-19

FACE THE CRISIS

Our main goals:

a) keep safe our people

b) re-think and re-organize our business model

c) be ready and reactive for the future changes

FACE THE CRISIS

40

Our main goals:

a)

b)

• adopt all available health measures to keep safe our people
• smart working increase-prolong
• constant internal communication
• review the operating activities, adapting our model to the customers reHuest
• support and focus the margins, maintaining the liquidity
• do not give up / slow down the innovation in technology (R&D investments)
• c) internal analysis regarding the organizational measures to be taken in respect of the laws (health) external analysis of any possible impact of the Covid-19, especially for the future development evaluate all the possible steps to be taken considering our ESG commitment

FACE THE CRISIS

41

Focus on cost containment:

Labour cost

forced collective holidays (residual balance if any)

CIGO (temporary lay-off scheme)

Cost cutting

travel, exhibitions and marketing costs reduction

renegotiation of key contracts (fixed costs)

Investments

CAPEX reduction postponement of the NON-Strategic projects

FINANCIAL SUPPORT

FINANCIAL SUPPORT

facilities breakdown

breakdown by type

« a revoca «

committed

breakdown by duration

12 months

SHAREHOLDERS

B.O.D.

€/MIL SHAREHOLDERS BREAKDOWN BY OWNERSHIP & B.O.D.

Biesse B.o.D.:

51,0%

Giancarlo Selci (founder - president)

Roberto Selci (C.E.O.)

Massimo Potenza (co C.E.O.)

Stefano Porcellini

Alessandra Parpajola

Giovanni Chiura (indipendent)

Federica Palazzi (indipendent)

Elisabetta Righini (indipendent)

DISCLAIMER

• This presentation has been prepared independently by Biesse S.p.A. and can be used only during meetings with investors and financial analysts. It's solely for information purposes and it may contain statements regarding future financial performances and Company's expectations
• Even if Biesse takes care that the information contained in the document have the requirements of reliability , correctness and newness, Biesse is not responsible for the content processed by third parties and content indicated in this Document. No liability is accepted by or on behalf of Biesse for any errors, omissions or inaccuracies contained in this presentation.
• Any forward looking statements are not guarantees of future performances and is related only of the date of this document. Th ey are based on the Group's current state of knowledge, future expectations and projections about the future events. By their nature they are subject to inherent risks and uncertainties.
• Further information concerning the Group results, including factors that could materially affect the Company itself (i.e. IFRS) will be included and detailed in the Financial Statement of the Group.
• 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.
• 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.
• No action should be taken or omitted based on the information contained in this Document. Biesse accepts no liability for the results of any action taken on the basis of the information contained in this Document.
• By attending the presentation you agree to be bound by the foregoing terms.
• The User is not granted any license or right of use and therefore is not allowed to record such content in whole or in part- on any type of media, reproduce, copy, publish and use them for any purpose without prior written permission.