Biesse — Investor Presentation 2024

Jul 30, 2024

Biesse Renovation is an extraordinary journey

H1 2024 Results

Conference Phone Call

30 July 2024

THE GROUP – WORLDWILDE PRESENCE

~4,250

total employees of which 42% out of Italy

of quarterly revenue in North & South America

ECONOMIC SCENARIOUS 2024-2026 1/2

Confirmed change of context compared to the previous 5 years

inflation decrease trend

Source: OECD, Economic Outlook May 2024 Source: IMF World Economic Outlook July 2024

ECONOMIC SCENARIOUS 2024-2026 2/2

Imports, Exports, and Order Intake are suffering vs. previous year

KEY COMPETITORS OVERVIEW 1/2

Wood

• In Q1 '24, Sales declined by 14.1% year-on-year
• Order intake increased by 7.0% year-on-year to €377.3M, due to a very large order worth around €90 million collected in Q4 '23 in China (furniture)
• To better cope with fluctuations in demand and enhance earnings resilience, 600 job cuts have been initiated
• Outlook for FY2024:
  • Sales decline up to 15%
  • EBIT before extraordinary effects between 2.0% and 4.0% due to the previous year's low order intake
  • Free cash flow €50M

Note: Except for HOMAG, which was significantly affected by market weakness, all divisions of DURR were able to expand margins

• The Wage Guarantee Fund ("Solidarietà") started in February 2024 and covers approximately 1,800 employees. It is valid until January 2025
• Plants involved: Rimini, Coriano (RN), Verucchio (RN), Thiene (VI), Vigolzone (PC)

KEY COMPETITORS OVERVIEW 2/2

Stone

• Economic Challenges: The company is currently facing significant financial difficulties, loss of profitability with high debt and liquidity issues impacting its overall performance and stability
• Declining turnover: from €290 million in 2019 to €219 million in 2023, with a projected €175 million for 2024 (-40%)
• Experienced a progressive order portfolio erosion, indicating a contraction of approximately 50% in H1 2024 compared to the previous year
• Strategic Rebalancing Efforts: The company is currently under the management of financial restructuring experts/advisors supporting management in implementing comprehensive restructuring plans, cost-cutting measures aimed at restoring financial health
• Request for the initiation of a corporate crisis procedure with the application of extraordinary wage guarantee fund (Cassa Integrazione Straordinaria) for the Castello di Codego and Vedelago plants (~830 employees)
• The company has a targeted reduction plan aiming to reduce the workforce by ~200 employees

THE GROUP - TREND ORDERS-SALES-BACKLOG

BIESSE perimeter

Revenues: € 333m vs € 418m PY (€ -85m; -20%)

Orders: € 300m vs € 343m PY (€ -43m; -13%)

Backlog: € 249m vs €315m PY (€ -66m; -21%)

The order intake has decreased compared to previous year because of:

• Slowdown recorded in some markets of EU area
• Difficulties in credit access and increase in interest rates which led to a consequential growth in orders blocked for financial reasons

Revenues result lower than previous year as a consequence of the dynamic of order intake.

* Data for 2023 does notinclude GMM Group in the perimeter

THE GROUP – H1 2024 HIGHLIGHTS

Value in €m	H1 2024(A)	H1* 2023(A)	∆	H2* 2023(A)	∆
A Revenues	395,7	418,2	-5,4%	366,8	7,9%
EBITDA adjusted B % Net Sales on	32,9 8 3% ,	47,0 11 2% ,	-30,0%	30,0 8 2% ,	9,5%
EBIT adjusted C % Sales Net on	13,3 3 4% ,	28,4 8% 6 ,	-53,1%	11,9 3 3% ,	11,6%
EBIT % Net Sales on	10,3 2 6% ,	30,3 7 3% ,	-66,1%	-6,2 -1 7% ,	NA
Net Result D % Net Sales on	3,9 1 0% ,	19,5 4 7% ,	-79,9%	-7,0 -1 9% ,	NA
Order intake	348,9	343,4	1,6%	333,8	4,5%

Revenues in H1 2024 have been equal	to €	395.7
mil., (5.4%) compared with H1 2023	but	+7.9%
compared with H2 2023.

• EBITDA adjusted equal to € 32.9 mil., lower than H1 2023 and higher compared to H2 2023.
• EBIT adjusted equal to € 13.3 mil, lower than H1 2023 and higher than H2 2023.
• D

C

B

A

The Group has recorded a Net Result positive for € 3.9 mil., € (15.6) mil. lower than H1 2023.

THE GROUP-BRIDGE NET RESULTS H1 2023 VS H1 2024

GMM Group Effect on

Net result as of 30th June 2024 has been equal to € 3.9 mil., € (15.6) mil. compared with H1 2023.

A

Revenues lower compared with H1 2023 of about € 85 mil., generating a lower marginality equal to € 43.6 mil. However, industrial margin improves of 4.3% because of the mix effect and of minor devaluations for € 2.3 mil.

C OPEX lower due to savings in trade shows and in business trips, partially compensated with higher consultancy and IT costs. F Non-recurring: higher due to a capital gain recorded in H1 2023 Taxes: positive effect due to minor result of the period. Tax rate increased compared with H1 2023 (50% vs 28%). B E Labor costs lower of about 9.4 mil. due to higher turnover, "cassa integrazione" and lower variable rewards, notwithstanding higherinflation costs. D D&A lower of roughly € 3 mil. due to changes in capitalization policies, lower provisions and lower devaluations in R&D. G GMM: negative effect on net result of the H1 2024 due to amortization of PPA, non-recurring costs related to the acquisition and restructuring costs of € 2 mil. C D B E GMM Group Effect on Ebitda € +6,3m F G Biesse Effect on Net Result (€14.6m) Biesse Effect on Ebitda (€ 20,4m) Net Result (€ 0,9m)

A

THE GROUP – REVENUES BY GEOGRAPHY

Value in €m	CONSOLIDATED			Biesse			GMM Group
AREA GEO	H1 2024(A)	H1* 2023(A)	H2* 2023(A)	H1 2024(A)	H1* 2023(A)	H2* 2023(A)	H1 2024(A)	H1** 2023(A)	H2** 2023(A)
AMERICAS	88,8	79,3	76,1	68,4	79,3	76,1	20,4	20,4	17,3
% on Total	22%	19%	21%	21%	19%	21%	33%	31%	28%
USA - MEXICO	64,9	60,1	53,0	47,2	60,1	53,0	17,7	17,9	15,1
CANADA	13,1	14,0	15,1	12,0	14,0	15,1	1,0	0,0	0,7
LATIN AMERICA	10,8	5,2	8,0	9,2	5,2	8,0	1,6	2,5	1,4
APAC	54,3	42,2	41,1	47,1	42,2	41,1	7,2	8,4	5,6
% on Total	14%	10%	11%	14%	10%	11%	12%	13%	9%
OCEANIA	25,5	17,7	16,6	20,1	17,7	16,6	5,4	6,6	4,5
INDIA	10,1	7,6	7,2	9,8	7,6	7,2	0,3	0,0	0,1
CHINA-TAIWAN	11,1	9,7	9,1	10,8	9,7	9,1	0,4	0,2	0,4
OTHERS	7,6	7,2	8,1	6,5	7,2	8,1	1,1	1,6	0,7
EMEA	252,7	296,7	249,7	217,8	296,7	249,7	34,8	36,0	38,3
% on Total	64%	71%	68%	65%	71%	68%	56%	56%	63%
NEEA	72,1	87,9	74,2	65,5	87,9	74,2	6,5	8,1	6,7
ITALY	56,0	86,3	71,2	47,4	86,3	71,2	8,7	13,8	12,0
DACH	32,6	34,1	24,4	28,9	34,1	24,4	3,7	4,5	4,2
FRANCE	29,4	26,6	32,1	26,0	26,6	32,1	3,4	0,6	2,2
UK - IRELAND	19,1	27,1	15,5	16,6	27,1	15,5	2,4	2,7	2,2
OTHERS	46,0	34,7	32,3	33,4	34,7	32,3	12,5	9,1	13,3
Total	395,7	418,2	366,8	333,3	418,2	366,8	62,4	64,8	61,2

EMEA, even after the acquisition of GMM, remains the main market of the Group, with revenues in H1 2024 equal to € 252.7 mil., 64% of the global sales.

^* Data for 2023 does notinclude GMM Group in the perimeter 10

^{* *} Data presented pro-forma in order to allow comparability

THE GROUP – HEADCOUNT TREND

Headcount	JUN 2024	%	JUN 2023*	%	∆	∆ %
Italy	2.141	50%	2.422	59%	-281	-12%
Rest of the world	1.671	39%	1.650	41%	21	1 %
BIESSE	3.812	90%	4.072	100%	-260	-6%
GMM Group	440	10%	NA	NA	440	NA
TOTAL	4.252	100%	4.072	100%	180	4,4%

Headcount as of June 2024 has recorded a growth of 180 unities compared with June 2023. The growth is due to the integration of GMM Group, partially compensated by a reduction of 260 unities in Biesse's perimeter.

Headcount	JUN 2024	MAR 2024	DEC 2023*	SEP 2023*	JUN 2023*
Italy	2.141	2.189	2.265	2.312	2.422
Rest of the world	1.671	1.645	1.659	1.653	1.650
BIESSE	3.812	3.834	3.924	3.965	4.072
GMM Group	440	440	NA	NA	NA
TOTAL	4.252	4.274	3.924	3.965	4.072

				@ Biesse
4.290		4.367 4.308 4.337 4.310 4.232 4.164 4.120 4.072 3.965 3.924				4.274 440	4.252 440
4.290		4.367 4.308 4.337 4.310 4.232 4.164 4.120 4.074 3.965 3.924 3.834					3.812

THE GROUP – H1 2024 NWC & NFP

Value in €m	H1 2024	DEC 2023*	∆	H1 2023*	∆
Inventories	216,3	168,4	47 9 ,	207,8	8 6 ,
Trade receivables	129,2	116,6	12 6 ,	129,1	0 1 ,
Trade payables	(155,7)	(135,3)	(20 5) ,	(174,6)	18 8 ,
Contract liabilities	(103,8)	(108,0)	3 4 ,	(114,4)	10 6 ,
Net operating working capital A	86,0	41,7	44,3	48,0	38,1
Net financial position without IFRS16	24,4	118,5	(94,0)	113,1	(88,7)
B Net financial position	(7,4)	93,0	(100,4)	91,9	(99,3)

The operative net working capital has increased of € 44.3 mil. compared with December 2023, mainly because of the variation of the consolidation perimeter as consequence of the acquisition of GMM Group. The remaining part of the effect is due to the decrease recorded in contract liabilities, equal to € 4.3 mil., influenced by the slowdown of order intake already started during 2023.

A

B

Net financial position is negative for € 7.4 mil. Compared with year-end 2023, the indicator decreases of € 100.4 mil., mainly because of the financial disbursement for the acquisition of GMM Group, the dynamics related to net working capital and the payment of dividends in May for a total amount of 3.8 million euros. Without the effects related to the application of IFRS16, NFP as of June 30th 2024, was positive for € 24.4 mil.

THE GROUP - SHAREHOLDER DISTRIBUTION

Biesse Board of Directors

• Roberto Selci (President)
• Massimo Potenza (C.E.O.)
• Alessandra Baronciani
• Rossella Schiavini
• Federica Ricceri
• Massimiliano Bruni
• Cristina Sgubin