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El.En.

Investor Presentation Mar 25, 2015

4393_cp_2015-03-25_6ecdc459-55e4-424a-aa75-a4dcb0537b3e.pdf

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COMPANY PRESENTATION

FY 2014

Star Conference – March 25th, 2015

Disclaimer

Certain statements in this slide show, including those addressing the Company's beliefs, plans, objectives, estimates or expectations of possible future results or events, are forward-looking statements. Forward-looking statements involve known or unknown risks, including general economic and business conditions, and conditions in the industry we operate and may be affected should our assumptions turn out to be inaccurate. Consequently, no forward-looking statement can be guaranteed and actual future results, performance, or achievements may vary materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation about the contents nor to update the forward-looking statements to reflect events or circumstances that may arise after the date hereof.

Summary

    1. LASERS AND LASER APPLICATIONS
    1. THE GLOBAL LASER MARKET
    1. EL.EN. GROUP
    1. LASER SURGERY
    1. 2014 FINANCIAL RESULTS
    1. 2015 GUIDANCE
    1. EL.EN. STOCK, MULTIPLES & COMPARABLES

Lasers and Laser Applications

Light Amplification Stimulated by Emission of Radiation

MEDICAL LASER Systems

INDUSTRIAL LASER Systems

The Global Laser Market

The MEDICAL Laser Market

Market CAGR 2013-2018
Market segment North
America
Europe Asia Latin
America
Total
Energy Devices 6,9% 3,2% 15,3% 9,0% 7,8%
Skin Rejuvenation 7,3% 5,8% 13,0% 11,8% 8,2%
Body Contouring 11,3% 6,4% 18,3% 15,7% 12,4%

Source: Medical Insight, Inc.

The INDUSTRIAL Laser Market

Global market and forecast for high power laser systems by application (by value)

application (by value)
By Value Global Market (EUR Million) CAGR (%)
2013 2016 2020 2013-2016 2016-2020
Cutting 2.408 3.014 3.965 7,8 7,1
Welding and Brazing 1.249 1.605 2.231 8,7 8,6
Surface treatment and Other 5
0
6
3
8
6
8,3 8,1
Total 3.707 4.682 6.282 8,1 7,6

El.En. Group

Group Overview

High –Tech laser photonics Group

Develops, manufactures and distributes laser sources and laser systems for medical and industrial applications

Know-how based on 30 years stratification of multidisciplinary experience

FY 2014: Consolidated Revenues of €180 mln, up 14% YoY

951 employees

Global positioning

Strategic Strengths

Multidisciplinary and multifacility R&D activity: sources, systems, applications

Industrial

Combine High tech laser source development with flexible production facilities in high growth areas

Medical

Technological and clinical innovation improving performance and broadening the application scope of our laser systems

Maximize market penetration by multi brand approach

Open new market segments by developing innovative applications

Leverage worldwide distribution with multi brand approach

Consolidated Revenues and EBIT

R&D Activity

Clinical trials and validations of new therapeutic laser treatments and research on new applications of laser- tissue interaction

Central role of PHOTOBIOLAB Extending Mona Lisa Touch Clinical studies Clinical studies on cutaneous ulcers New Pico second laser platform New dermatological applications Patents development New mid power range RF laser sources Innovative beam delivery and focusing systems

Laser Surgery

Dr Paolo Salvadeo

Consolidated Sales Volume

Euro '000

2013 : 11.759 2014 : 17.548

Increase : 49,23%

Impact factors:

  • Urology and endo-urology
  • Vaginal Atrophy ( Mona Lisa Touch)
  • Strategic Agreements with major market players

30 W Holmium lasers for Laser lithotripsy

Worldwide market share

2012: 17% 2014: 34%

Impact factors:

  • New strategic agreements
  • Strong regulatory committment worldwide (USA, Asia; next in line is Japan)
  • First Group in the world to have introduced the «dusting effect» avoiding retropulsion of stones

Dusting Effect

Dusting Effect Long Pulse

Conventional Lithotripsy Short Pulse

200 W Thulium Laser for BPH

Worldwide market shares

Impact factors:

  • Introduction of the 200 W new Cyber platform
  • Goliath Study

  • Differentiation strategy

  • Safety, speed, reduced hospitalization and post op morbidities
  • Strong regulatory committment worldwide
  • Success on the US market
  • Development of endourologic advanced tools

The Mona Lisa Touch

Strategic developments

  • Seeking regulatory (FDA) clearance for the combination of use of our lasers with the Da Vinci Robot (Intuitive Surgical – Nasdaq : ISRG)
  • (EU Horizon 2020) FOCAS Project
  • Developing new protocols for the «sub-mucosa laser dissection» (intestine + stomach real time endoscopy + cancer removal)
  • Developing new protocols for laser pleurodesis
  • Developing new laser platforms for general surgery
  • Seeking worldwide regulatory clerance for breakthrough endourologic solutions

Highlights

Strategic Agreement with the San Donato Hospital Group, among the most significant groups of hospitals in the world, including San Raffaele from 2012.

· DONATIONS BY QUANTA SYSTEM THULIUM LASER FOR POLICLINICO AGOSTINO GEMELLI IN MEMORY OF JOHN PAUL II,

HOLMIUM LASER SPECIFIC TO THE CARE OF KIDNEY STONES FOR "POPE FRANCIS' KIDS."

2014 Financial Results Dr Enrico Romagnoli

Consolidated P&L

Euro/000 31/12/13 31/12/14 Var.%
Revenues 157.380 100,0% 180.009 100,0% 14,4%
Gross margin 74.563 47,4% 81.849 45,5% 9,8%
EBITDA 13.741 8,7% 17.963 10,0% 30,7%
EBIT (*) 9.582 6,1% 15.301 8,5% 59,7%
Pretax Income (**) 10.694 6,8% 24.409 13,6% 128,2%
Net income (**) 6.080 3,9% 16.520 9,2% 171,7%
Net Income per share 1,27 3,42 170,5%

(*) 2014 Non recurring: + 1,5 mln of euros. 2014 EBIT% excluding non recurring: 7,7%

(**) 2014 Total one time and non recurring:+6,0mln of euros on pretax income; +5,5mln on net income. In 2013 +2,5 mln on both

Forex loss of 1 mln of euros (2013) and forex gain of 5 mln of euros (2014) included in Pretax income

Consolidated BS

Euro/000 31/12/13 31/12/14 Var.%
Total non current assets 72.976 61.775 -15%
Net Working Capital 48.414 49.501 2%
Net financial position 21.820 47.116 116%
Long term liabilities 8.904 7.856 -12%
Net Equity 134.306 150.536 12%
Net capital employed 112.486 103.420 -8%
Net Working Capital/sales 31% 27%
ROCE
(EBIT/Net capital employed) 9% 15%
Capex 3.878 10.511

El.En. – Revenues breakdown by business

Medical Aesthetic Surgical Physiotherapy Dental Service

Industrial

Cutting Marking Laser sources

Euro /000

Service

Dec. 31st, 2013 Dec. 31st, 2014

2015 Guidance

2015 forecast

Sales: 200 mln +11%

EBIT: % on Sales and amount to improve on 2014

El.En. Stock, Multiples & Comparables

El.En. stock

El.En. multiples

Stockholder's Equity per share * 3
1
Price / Book Value Adj. 1,24
EV /EBIT (85% EBIT) 8,35
EV / Sales (85% Sales) 0,71
El.En. Market Cap. 183,9
@ €38,12
Net financial position 47,1
@ 31/12/14
Market value of 1,0 mm Cynosure shares 28,2
@ \$30 (Euro/Usd=1,0624)
Enterprise Value 109
Stockholder's Equity net of minorities, 148,6
* (with Cynosure shares at market value)

El.En. Comparables

Dec. 31, 2014 Price Revenue Var.%
Revenue
EBIT EBIT % MK.Cap. EV EV/Sales EV/EBIT P/Book
Value
Medical/Aesthetic
Syneron \$12,03 \$255.750 0
%
\$(2.217) -1% \$433.070 \$339.412 1,33 n.a. 1,90
Zeltiq \$33,62 \$174.480 56% \$2.120 1
%
\$1.280.000 \$1.235.440 7,08 582,75 18,15
Lumenis \$11,71 \$289.719 9
%
\$21.216 7
%
\$412.710 \$359.144 1,24 16,93 4,11
Cutera \$14,93 \$78.140 5
%
\$(10.620) -14% \$207.370 \$126.220 1,62 n.a. 2,58
Biolase \$2,00 \$47.660 -16% \$(17.940) -38% \$115.140 \$83.580 1,75 n.a. 2,74
Cynosure \$30,00 \$292.370 29% \$21.260 7
%
\$632.410 \$541.450 1,85 25,47 1,77
Industrial
IPG Photonics Co. \$97,65 \$769.830 19% \$283.760 37% \$5.210.000 \$4.701.180 6,11 16,57 4,98
Rofin-Sinar \$23,47 \$531.318 -2% \$37.504 7
%
\$664.110 \$515.700 0,97 13,75 1,25
Prima Industrie €18,09 €350.464 4
%
€22.298 6
%
€189.750 €281.839 0,80 12,64 1,57
El.En. (1) €38,12 €180.009 14% €15.301 9
%
€183.905 €108.590 0,71 8,35 1,24

(1) EV and multiplies as for previous slide

El.En. SPA

Enrico ROMAGNOLI Investor Relations Manager tel. +39 055-8826807 E-mail: [email protected]

POLYTEMS HIR SRL

Bianca FERSINI MASTELLONI Financial Communication Tel. +39 06-6797849 / +39 06-69923324 E-mail: [email protected]

POLYTEMS HIR SRL

Veronica ADRIANI Press office Tel. +39 06-6797849 / +39 06-69923324 E-mail: [email protected]

Medical & Industrial

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