Biesse — Investor Presentation 2020

Feb 21, 2020

Pesaro, February 21st - 4 p.m. phone conference call

Excell-Word-

A. Amurri - I.R. Manager www.biessegroup.com

BIESSE THREE YEARS BUSINESS PLAN EXTRACT

SALES BREAKDOWN

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.

ONE COMPANY

TARGETS

Consistent management model

One Leadership

Establish a new operating model

Shared tools & processes

Implement a global management model to foster the culture of a synergy-driven enterprise, enabling cross fertilization across Headquarters, Divisions & Subsidiaries

Strengthen the global leadership model to ensure a cohesive and independent Management Team

Guarantee IT solutions to support the Company's global processes

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

NEW SEGMENTS MARKET 2019

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

Multicam.

important are Hundegger (market leader), HOMAGand Weinmann.

FISHER and STEPTEC.

GROUP ORDERS INTAKE& BACKLOG

Machines only

RECOVER PROFITABILITY

	l N S t e a e s	3 2 l N t e s a e s % C G 2 0 9 2 0 2 2 A R 1 e-
E B I T D A i M a r g n 3 1 > % 2 0 2 2 Ta t rg e	f d l d C t o s o g o o s o	4 0 T C O G S t a r g e % d l i i N S t n c e n c e o n e a e s
E B I T D A 0 3 1 2 0 2 2 Ta t e	b & L a o u r h d O t v e r e a c o s	4 7 l b & O h d T t a r g e a o r e r e a u v < % d l C i i N S t t o s n c e n c e o n e a e s
rg ln € / m

LABOUR & OVERHEAD COSTS

Labour & Overhead costsLabour & Overhead costs margin

€/mln - %

EBIT

0

10

20

30

40

50

60

70

80

90

100

2019e results are expected to be impacted negatively by 9.5 €/mln of non recurring items 2022 results are expected to be impacted positively by Chinese plant divestment *Before Non Recurring in 2019e and 2022

2019e results are expected to be impacted negatively by 9.5 €/mln of non recurring items 2022 results are expected to be impacted positively by Chinese plant divestment

TAX RATE EVOLUTION

EXTRACTOF THE P&L

l € / m n	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 8 1	2 0 9 1 e		2 0 2 2 e
l N t e s a e s 1 y e a r -	4 2 7 2. 9 % 1 +	5 1 9 2 % 1. 5 +	6 1 8 9. % 1 1 +	6 9 0 % 1 1. 6 +	7 4 0 2 % 7. +	7 0 6 % -4 6	C A G R 2 0 2 0 9 1 4- 1 0. % 1 6	6 7 7
f d l d C t o s o g o o s s o	1 7 1 4 0. 1 %	2 0 6 3 9. 7 %	2 4 5 3 9. % 6	2 7 0 3 9. % 1	2 9 5 3 9. 9 %	2 8 7 0, % 4 6		3 1 6 0. % 4 7
b h d L & O a o u r v e r e a t c o s	2 1 9 5 1. 3 %	2 5 3 4 8. 7 %	3 0 1 4 8. 7 %	3 3 5 4 8. 6 %	3 5 9 4 8. 5 %	3 5 0 4 9. 6 %		3 6 4 4 6. 9 %	0 % 4 7 < inc ide nc e on t S les Ne a
E B I T D A %	4 0 9. 3 %	6 4 1 2. 4 %	6 7 1 2. 3 %	8 9 1 2. 9 %	9 3 1 2. 5 %	7 7 1 0. 9 %		0 3 1 3. 2 % 1
E B I T %	2 5 5. 8 %	4 4 8. 4 %	5 5 8. 9 %	6 4 9. 2 %	6 4 8. 6 %	3 0 * 4. 2 %		0 7 9. 1 %

*after non recurring items

2019e results are expected to be impacted negatively beforeby 9.5 €/mln of non recurring items 2022 results are expected to be impacted positively by Chinese plant divestment

€ 39.5 (5.6%)

CASH FLOW

l € / m n	2 0 1 4	2 0 1 5	2 0 1 6	2 0 1 7	2 0 1 8	2 0 1 9 e	2 0 2 2 e
h f l G C r o s s a s o w % les t s ne a	3 8 9. 0 %	4 6 8. 9 %	4 7 7. 4 %	7 4 1 0. 9 %	3 5 7. 1 %	2 4 5. 9 %	8 6 8. 8 %
I t t n v e s m e n s % les t s ne a	-2 1 4. 9 %	-2 5 4. 9 %	-3 2 5. 2 %	-3 9 5. 7 %	-4 5 6. 1 %	-7 1 * 1 0. 1 %	3 1 - 4. 0 %
h f l N C t e a s o w les % t s ne a	1 7 4. 1 %	2 1 4. 1 %	1 5 2. 2 %	3 5 5. 2 %	8 1. 1 %	-2 9 -4 2 %	3 8 8 % 4.
d d D i i v e n s	-4 8 ha 0. 1 8 p er s re	-9 8 ha 0. 3 6 p er s re	-9 8 ha 0. 3 6 p er s re	-9 9 ha 0. 3 6 p er s re	-1 3. 1 ha 0. 4 8 p er s re	-1 3. 1 ha 0. 4 8 p er s re

* 34 €/mln IFRS 16 effect

** Included Chinese plant divestment IFRS 16 effect IAS 17 effect

OPERATING NET WORKINGCAPITAL

0

10

20

30

40

50

60

70

80

90

100

• inventories below 23% incidence on Net Sales
• Group DSO approx. 50 -60 days max
• Group DPO approx. 105-110 days

Business Plan

OPERATING NET WORKING CAPITAL ELEMENTS3 -Year

€/mln 2014 2015 2016 2017 2018 2019e 2022e Inventories % net sales 23.0% 21.5% 21.1% 20.7% 22.0% 22.0% 22.0% Receivables % net sales 18.9% 20.3% 20.8% 17.3% 18.1% 6.7% 9.2% Payables % net sales 28.8% 29.5% 31.1% 32.4% 33.0% 18.8% 19.1% Operating Net Working Capital % net sales 56 13.0% 63 12.2% 67 10.8% 39 5.6% 53 7.2% 71 10.0% 95 12.3% IFRS 15 effect According to IFRS 15 Advanced Payments from Clients are reclassified from Account Payables to Account Receivables. In 2019e advanced payments are approx. euro 65 million

23

CAPEX

total capex % on sales

total capex value

Main investments items in the plan period 2020-2022: (tangible average 55.9%)

• Components Cosmec (mechanical components) new plant and working centers
• India – expansion of the manufacturing plant
• SubsidiaryBiesse America campus
• Supply chain – investments in the logistics network
• R&D capitalized

Divestment of the Chinese plant

²⁰²²e includes China restructuring effects (cash-in)

EMPLOYEES DISTRIBUTION

(without interim people)

	F Y 2 0 1 2	F Y 2 0 1 3	F Y 2 0 1 4	F Y 2 0 1 5	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9
du io Pr t o c n f l p le % tot o a eo p	1, 2 6 5 45 %	1, 1 7 5 44 %	2 0 1, 1 42 %	1, 3 3 5 42 %	1, 4 8 2 41 %	1, 9 4 4 39 %	2 1, 6 1 38 %	1, 3 8 5 3 5 %
f le Se ice & A te rv r sa % f l p le tot o a eo p	5 7 4 21 %	6 1 3 22 %	6 2 8 22 %	6 9 0 22 %	8 0 3 22 %	8 9 4 % 23	1, 0 0 1 24 %	9 9 2 2 5 %
R & D f l p le % tot o a eo p	3 3 8 12 %	3 2 1 12 %	3 6 1 13 %	3 8 3 13 %	4 3 6 12 %	4 7 9 12, 5%	5 0 1 12 %	4 8 2 1 2 %
les ke ing Sa & M t ar f l p le % tot o a eo p	3 6 4 13 %	3 5 1 13 %	4 3 9 15 %	4 9 5 15 %	5 8 7 16 %	6 4 1 17 %	7 1 5 % 17	6 8 5 1 7 %
G A & f l p le % tot o a eo p	2 4 2 9%	2 3 5 9%	2 5 2 9%	2 7 3 9%	3 1 0 8, 5%	3 3 8 8, 8%	3 8 9 9%	3 8 2 1 0 %
I T A L Y % o f l pe le tot a op	1, 6 4 6 % 59	1, 5 4 7 % 57	1, 6 0 5 % 56	1, 7 8 0 % 56	2, 0 0 9 % 56	2, 1 7 6 % 56	2, 8 3 4 59 %	2, 4 1 7 6 2 %
O U T S I D E I T A L Y % o f l pe le tot a op	1, 1 3 6 41 %	1, 1 4 8 43 %	1, 2 7 6 44 %	1, 3 9 6 44 %	1, 6 0 9 44 %	1, 6 7 0 44 %	1, 7 4 4 % 41	1, 5 0 9 3 8 %
O T T A L	2, 8 2 7	2, 9 6 5	2, 8 8 1	3, 1 7 6	3, 8 6 1	3, 8 4 6	2 2 4, 7	3, 9 2 6

EMPLOYEES DISTRIBUTION (GEO)

	F Y 2 0 1 2	F Y 2 0 1 3	F Y 2 0 1 4	F Y 2 0 1 5	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9
I T A L Y f l pe le % o tot a op	1, 6 4 6 59 %	1, 5 4 7 57 %	1, 6 0 5 56 %	1, 7 8 0 56 %	2, 0 0 9 70 %	2, 1 7 6 57 %	2, 4 8 3 59 %	2, 4 1 7 62 %
O U T S I D E I T A L Y f l pe le % o tot a op	1, 1 3 6 41 %	1, 1 4 8 43 %	1, 2 7 6 44 %	1, 3 9 6 44 %	1, 6 0 9 44 %	1, 6 7 0 43 %	1, 7 4 4 % 41	1, 5 0 9 38 %
T O T A L	2, 7 8 2	2, 6 9 5	2, 8 8 1	3, 1 7 6	3, 6 1 8	3, 8 4 6	4, 2 2 7	3, 9 2 6

interim people at the end of Dec. 2019: 207

4,133

	2 0 8 F Y 1	2 0 9 F Y 1	%
du ion Pr ct o	1, 6 2 1	1, 3 8 5	-1 4, 6 %
Se ice & fte Sa les A rv r	1, 0 0 1	9 9 2	-0 9 % ,
R & D	0 5 1	8 2 4	-3 8 % ,
les ke Sa & Ma ing t r	7 1 5	6 8 5	-4 2 % ,
G & A	3 8 9	3 8 2	8 % -1 ,
I T A L Y	2, 4 8 3	2, 4 1 7	-2 7 % ,
O U T S I D E I T A L Y	1, 7 4 4	1, 5 0 9	-1 3, 5
T O T A L	2 2 4, 7	3, 9 2 6	% -7 1 ,

China Korex

SHAREHOLDERS - B.O.D.

€/MIL SHAREHOLDERS BREAKDOWN BY OWNERSHIP BOARD OF DIRECTORS

Biesse B.o.D.:

• Giancarlo Selci (founder - president)
• Roberto Selci (C.E.O.)
• Stefano Porcellini
• Alessandra Parpajola

• Silvia Vanini

• Giovanni Chiura(indipendent)

• Federica Palazzi (indipendent)
• Elisabetta Righini (indipendent)

FINANCIAL CALENDAR

FINANCIAL CALENDAR

approval of the 2019 financial statement project general shareholders meeting (first and second convocation - Pesaro) approval of the 2020 IQ results 13 March 2020 21-22 April 2020 12 May 2020

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
• 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. They 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 informations contained in this Document. Biesse accepts no liability for the results of any action taken on the basis of the informationscontained 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.

biessegroup.com

Alberto Amurri Investor Relator Manager 0039 - 0721439107 0039 - 3351219556