Biesse — Investor Presentation 2022

Mar 25, 2022

STAR CONFERENCE 2022

EURONEXT MARCH 25TH

AN INDUSTRIAL GROUP

Biesse Group is an international company that designs, manufactures and distributes systems and machines for processing wood, glass, stone, metal, plastic and composite materials aimed at the furniture, housing & construction, automotive and aerospace sectors.

Founded in Pesaro in 1969 by Giancarlo Selci, it has been listed in the STAR segment of the Italian Stock Exchange since 2001.

80% of its consolidated turnover is achieved abroad.

It operates in over 160 countries with 14 manufacturing sites and a direct presence in the main world markets.

Its customers include industry leading companies and some of the most prestigious names in Italian and international design.

Today it has more than 4,300 employees.

A DIRECT PRESENCE

Worldwide Showrooms and Offices

THE OFFER RANGE

MACHINES	We design, manufacture and distribute a full range of machinery and technologies for processing wood, glass, stone, metal, plastic and composite materials.
SYSTEMS	We build engineering solutions, from system design to manufacturing, implementation, installation and maintenance.
SERVICES	We provide professional after-sales services to support the efficiency and productivity of installed machinery.
MECHATRONICS	We design, manufacture and supply high-tech mechanical and electronic components for Industry 4.0 ready machines.
TOOLING	We design, manufacture and distribute a complete range of tools for working with glass, natural and synthetic stone and ceramics.

BIESSE FOR WOOD Biesse is the specialised brand

associated with the manufacture and marketing of wood processing machinery.

Since 1969, this business has designed, manufactured and marketed a complete range of technologies and solutions for the furniture, windows, doors and wood components for the building Industry.

BIESSE FOR PLASTIC & COMPOSITE MATERIALS

Biesse brand offers solutions for the processing of technological, packaging, construction and visual communication materials, including the processing of expanded and compact plastic materials, composite materials and cardboard.

INTERMAC FOR GLASS & STONE

Intermac is the brand under which the Group, since 1987, has designed, manufactured and marketed machinery for the processing of glass, stone and metal destined for flat glass and stone processing companies and for the furniture, construction and automotive industries.

FORVET FOR THE FLAT GLASS Forvet is the Biesse Group brand that designs, Forvet S.p.A. is a unique reference in the market and

manufactures and distributes machines and special automated systems for processing flat glass.

it is nationally and internationally known for its hightechnology machines and special solutions for flat glass processing that encapsulate a high level of know-how, capable of producing a complete product in a reduced space, including loading, unloading and intra-logistics operations that can be customised according to customer needs.

MECHATRONICS

The Group directly designs and manufactures all high-tech components for its machinery. Thanks to its mechatronics division (HSD), the Group manufactures electrospindles, 5-axis heads, bevel gearboxes and drilling units for numerical control processing centres. These are key components that help ensure that customers will benefit from high performance and a competitive advantage.

DIAMUT FOR TOOLING

Under the Diamut brand, the Tooling division manufactures and markets tools for the processing of glass, stone and ceramic. Its synergy with Intermac has enabled it to develop a range of tools, which in terms of reliability, have become a benchmark in the market.

SUPPLY CHAIN

Customer focus and satisfaction are the basis of a strategic approach that begins with sustainable supply chain management and continues through all stages of the product life cycle.

An integrated, end-to-end and flexible approach allows us to deal with unexpected events and guarantee production continuity, to offer a level of service that is increasingly responsive to customer needs over time.

MANUFACTURING SITES

The Group has 14 manufacturing sites in Italy and India with a total of over 110,000 square meters.

8 sites are ISO 9001:2015 certified.

GROUP SUPPLIERS

The Group cultivates the relationship with the territories: 89% of purchases are made with suppliers local to manufacturing sites in Italy and India.

PEOPLE

The Group recognizes its people as the essential factor in its success and ability to pursue excellence.

69,000 hours of training provided to employees during 2020.

TRAINING CONTRACTS

95% of employees have a permanent contract.

1,500 people have worked for the Biesse Group for over 10 years.

RETENTION INTERNATIONALISATION

The Group's Headquarters is in Italy, around 40% of employees reside abroad.

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.

MAIN GOALS ACHIEVED IN 2020

CO2 emissions (Scope 2 market based) compared to 2019.

UNI ISO 45001:2018 certified occupational safety management system for HSD S.p.A.

*C02 scope 2 market based

OUR CUSTOMERS' INDUSTRIES

REVENUE

BIESSE GROUP OVER THE YEARS

(DRAFT)

EXTRACT OF THE P&L

EXTRACT OF THE P&L
€/mln	FY2015	FY2016	FY2017	FY2018	FY2019	FY 2020	FY 2021
Net sales year -1	519.1 +21.5%	618.5 +19.1%	690.1 +11.6%	741.5 +7.4%	705.9 -4.8%	578.8 -18.0%	742.2 +28.2%
Labour & Overhead %	253 48.7%	301 48.7%	335 48.6%	359 48.5%	350 49.6%	283.3 49.0%	357.4 48.1%
EBITDA %	64.1 12.4%	75.8 12.3%	89.4 13.0%	92.7 12.5%	76.7 10.9%	56.0 9.7%	79.7 10.7%
NET RESULT (PROFIT) %	21.1 4.1%	29.5 4.8%	42.8 6.2%	43.8 5.9%	13.0 1.8%	2.5 0.4%	34.2 4.6%

SALES BY QUARTERS

20

215.2

NET FINANCIAL POSITION

CASHFLOW BRIDGE - DELTA N.F.P.

OPERATING N.W.C.

72.3 27.7 -8.4 67.5 72.2 127.1 2019 2020 2021 O.N.W.C. receivables payables inventory liabilities 34.3% 34.0 33.6 % €/mln

the 2021 Group order intake is: + 61.1% vs 2020 + 41.9% vs 2019 GROUP ORDER INTAKE & BACKLOG

EMPLOYEES DISTRIBUTION

						EMPLOYEES
						DISTRIBUTION					Service & After Sales
	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021
ITALY % of total	1,646	1,547	1,605	1,780	2,009	2,176	2,483	2,418	2,383	2,345
people	59%	57%	56%	56%	70%	57%	59%	62%	63%	61%
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%	1,380 36%	1,483 39%	India	Middle-East
TOTAL	2,782	2,695	2,881	3,176	3,618	3,846	4,227	3,927	3763	3,828	China Aus/NZ CanadaAsia U.S.A.
		interim people at total	nr.4,308	the end of December	2021: nr.480						Russia UK France Spain Germany

											FY2020	FY 2021	%
										Production	1,324	1.393	5.21%
	EMPLOYEES DISTRIBUTION					Service & After Sales	962	992	3.12%
										R&D	478	451	-5.65%
FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	Sales & Marketing	637	655	2.83%
										G&A	362	337	-6.91%
1,646	1,547	1,605	1,780	2,009	2,176	2,483	2,418	2,383	2,345	ITALY	2,383	2.345	-1.59%
59%	57%	56%	56%	70%	57% 59% 62%				63% 61%	OUTSIDE ITALY	1,380	1.483	7.46%
										TOTAL	3,763	3.828	1.73%
1,136 41%	1,148 43%	1,276 44%	1,396 44%	1,609 44%	1,670 43%	1,744 41%	1,509 38%	1,380 36%	1,483 39%	India	Middle-East

EMPLOYEES DISTRIBUTION

EMPLOYEES DISTRIBUTION (without interim people)
	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021
Production % of total people	1,264 45%	1,175 44%	1,201 42%	1,335 42%	1,482 41%	1,494 39%	1,621 38%	1,386 35%	1,324 35%	1,393 36%
Service & After sale % of total people	574 21%	613 22%	628 22%	690 22%	803 22%	894 23%	1,001 24%	992 25%	962 26%	992 26%
R&D % of total people	338 12%	321 12%	361 13%	383 13%	436 12%	479 12,5%	501 12%	482 12%	478 13%	451 12%
Sales & Marketing % of total people	364 13%	351 13%	439 15%	495 15%	587 16%	641 17%	715 17%	685 17%	637 17%	655 17%
G&A % of total people	242 9%	235 9%	252 9%	273 9%	310 8,5%	338 8,8%	389 9%	382 10%	362 10%	337 9%
ITALY % of total people	1,646 59%	1,547 57%	1,605 56%	1,780 56%	2,009 56%	2,176 56%	2,483 59%	2,418 62%	2,383 63%	2,345 61%
OUTSIDE ITALY % of total people	1,136 41%	1,148 43%	1,276 44%	1,396 44%	1,609 44%	1,670 44%	1,744 41%	1,509 38%	1,380 37%	1,483 39%
TOTAL	2,782	2,695	2,881	3,176	3,618	3,846	4,227	3,927	3,763	31 3,828

1 DIVIDENDS

The Board of Directors proposed to the Biesse Shareholders' General Meeting (April 27th) a plan to buy and dispose its own shares. Duration: 18 months (from the Biesse Shareholders' Meeting approval) Amount: max 10% of the Biesse equity (nr. 2,740,259 shares), but in anycase not exceeding 15 mln of euro disbursement BUYBACK PROGRAM - PROPOSAL

the authorisation to purchase and dispose of treasury shares has the following purposes:

to service any stock option incentive schemes that may be approved by the Company in the future;

• set up a share warehouse to transfer, dispose of and/or use treasury shares, in line with the strategic guidelines that the Company intends to pursue, as part of extraordinary transactions, including, by way of example but not limited to, swaps, exchanges, contributions or to service capital transactions or other corporate and/or financial transactions and/or other transactions of an extraordinary nature such as, by way of example but not limited to, acquisitions, mergers, spin-offs, convertible bond issues, bonds, warrants, etc.; medium- and long-term investments or, in any case, those made to take advantage of realisation opportunities
• that may arise from market trends.

EXTRACT

In the next 3 years, Biesse's strategy will be focusing on four main directives. STRATEGY 2021-2023

Ensure sustainable growth Empower offering & go-to-market

• Strengthen product portfolio
• Accelerate services growth
• Focused commercial development
• Strengthen brand positioning

Enhance digital manufacturing Enable future development Sophia & Industrial IoT Business Plan

• HSD & Lighthouse plant

• Integrated Global Supply Chain

• Corporate Social Responsibility Journey
• Inspire people

• Finance Evolution

• One Company model fully operational

• Explore additional growth opportunities

ONE COMPANY MODEL FULLY OPERATIONAL

In 2020 and 2021 the Group carried on an organization redesign project: the One Company project.

The project main objectives are:

• Make the Group more flexible and reactive, capable of responding promptly to external stress conditions
• Simplify internal processes to speed up business decisions
• Place the Customer needs more and decisions.

In the plan period the new model will become fully operational, fostering the growth path from the 2022.

ANALYSIS (1)

Bloomberg & Reuters source

ANALYSIS (2)

G.S. & Banca Intesa source

• 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. part- on any type of media, reproduce, copy, publish and use them for any purpose without prior written permission. DISCLAIMER
• 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. The User is not granted any license or right of use and therefore is not allowed to record such content – in whole or in
• 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.