El.En.

Investor Presentation • May 25, 2020

COMPANY PRESENTATION

Star Conference – May 2020

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.

AGENDA

• 1. Overview
• 2. Markets and Growth drivers
• 3. Innovation: products & applications
• 4. Financial Highlights
• 5. Current Outlook
• 6. Multiples & Comparables

Overview

A Primary Player Providing Medical, Industrial and Conservation Laser Solutions Worldwide

Hi-Tech company

Hi-Tech industrial group active in opto-electronics with proprietary technologies and know how developed over 35 years

Listed on the Milan Stock Exchange Star segment since 2000

Global Group

More than 20 companies active worldwide on several laser application segments and markets

Among the leaders in its space with a Worldwide distribution network

Progressively widening its worldwide presence registering continuous growth over the years More than 50,000 laser sources sold and 5% of revenue invested in R&D More than 125 patents

Growth history

Markets and Growth drivers

Long term market trends

Aesthetics:

• § Aging population
• § Growing global obesity rate
• § Increasing desire of individuals to improve their appearance
• § Lower procedure cost, attracting a broader consumer base

Minimally invasive surgeries:

• § Painless procedures
• § Reduced side effects and risks
• § Hospitalization days reduction
• § Savings by Private & National Health Systems
• § Attractive ROI for surgical services providers 9

Long term market trends

Laser cutting applications:

• § Laser power increase + Cost reduction: Enhanced flexibility, productivity and quality standards in manufacturing processes
• § New application verticals
• § Building and construction
• § Minimal environmental impact

Laser marking:

• § Products identification and traceability
• § Minimal environmental impact

Medical Aesthetics: Market Overview (pre-Covid)

Source: Daniel Associates

Key growth drivers:

• § Aging population
• § Desire to achieve and maintain youthful appearance
• § Increase in healthcare spending
• § Requirements for fast and minimally invasive surgical procedures

Daniel Associates: Medical aesthetics market 2018 to 2023 10.23% CAGR

Medical Aesthetics: Market Overview

	2018	2024	Cagr
Facial Aesthetics Products	1.831	3.638	10,7%
Body Contouring Devices	1.708	3.172	10,3%
Cosmetic Implants	1.321	2.415	10,0%
Phisician-dispenced cosmoceuticals
and skin	1.104	1.903	10,2%
Skin Aesthetic Devices	938	1.762	10,2%
Phisician-dispenced eyelash
products	910	1.551	10,0%
Hair removal devices	783	1.432	10,0%
Tattoo removal devices	87	153	9,9%
Thread lift products	73	125	9,8%
Nail treatment laser devices	61	110	9,5%	Source: Daniel Associates
	8.816	16.261

	2018	2024	Cagr
North America	3.147	5.689	9,9%
Europe	1.958	3.480	9,4%
Asia Pacific	2.343	4.635	11,6%
Middle East&Africa	822	1.492	9,8%
Latin America	547	965	9,4%
	8.816	16.261

Industrial laser market

Laser systems increasingly adopted in high quality manufacturing for uniqueness, flexibility, environment friendliness, productivity

• Sheet metal cutting: technology breakthroughs leading to strong demand expansion
• Laser marking for identification: traceability as a quality standard

MARKET STUDIES:

ResearchAndMarkets's analysts forecast :

"The global industrial lasers systems market size was valued at \$20,120.2 million in 2018, and is projected to reach \$36,510.6 million by 2026, growing at a CAGR of 7.5% from 2019 to 2026"

Growth drivers

Innovation: Products & applications

Complete product portfolio for body contouring, cellulite treatments, skin firming

New ONDA (microwaves)

Unique high end system for cellulite, localized adiposities, fat removal, submental treatments

Physiq, Delinea, B-Star

A family of unique combinations of superluminescent matrices with Tents and EMS

Schwarzy

High intensity magnetic fields for muscles stimulation

New Icoone Laser Micro alveolar stimulation

RED TOUCH Unique system for neocollagenesis and tiussue regeneration

Tattoo and Toning

Discovery Pico Derm

Designed for asian skins

PicoStar

The most powerful picosecond laser in the marketplace

Chrome Station Three wavelengths multi platform

Tattoo and Toning

Acne

Acne

Surgery (urology)

A complete line of Holmium lasers from 25 W to 155 W

Surgery (urology)

New FIBER DUST

One of two worldwide players in high power medical fiber lasers

Our novel disruptive technology for the most effective stones micro fragmentation

New UHPTDL - Q4 2020

Physiotherapy

MiS (MLS Family) For degenerative neuropathies

Industrial lasers systems

STEEL CUTTING

10 kW Average power in 2020 sales bookings 30 kW systems to come in 2020

FACE MASKS, PLEXI, PROTECTIVE VISORS CUTTING

Laser cutting of technical tissue, or plastics for protection and social distancing Up to 1,2 KW CO2 (RF)

Financial Highlights

Income Statement FY-2019

Euro '000	31/12/18	%	31/12/19	%	Var.%
Medical	197.854	57,2%	242.184	60,4%	22,4%
Industrial	148.167	42,8%	158.577	39,6%	7,0%
Total Revenues	346.020	100,0%	400.761	100,0%	15,8%
Gross margin	137.478	39,7%	156.021	38,9%	13,5%
EBITDA	35.618	10,3%	46.312	11,6%	30,0%
EBIT	29.987	8,7%	38.198	9,5%	27,4%
Pretax Income	29.545	8,5%	38.644	9,6%	30,8%
Net income	16.794	4,9%	26.017	6,5%	54,9%
Net Income per share	0,87		1,33

Balance Sheet FY-2019

Euro '000	31/12/18	31/12/19	Var.%
Total non current assets	86.879	110.966	27,7%
Net Working Capital	102.248	110.672	8,2%
Other receivables/payables ST	(22.341)	(31.127)	39,3%
Net financial position	62.461	61.419	-1,7%
Long term liabilities	10.011	11.297	12,8%
Net Equity	219.236	240.633	9,8%
Net capital employed	157.051	179.214	14,1%
Net Working Capital on sales	29,5%	27,6%
ROCE	19,1%	21,3%
(EBIT/Net capital employed)
Capex	27.058	23.471

Income Statement Q1-2020

Euro '000	31/03/19	%	31/03/20	%	Var.%
	unaudited		unaudited
Medical	49.814	59,4%	53.518	73,4%	7,4%
Industrial	34.051	40,6%	19.426	26,6%	-42,9%
Total Revenues	83.865	100,0%	72.945	100,0%	-13,0%
Gross margin	33.229	39,6%	31.512	43,2%	-5,2%
EBITDA	7.679	9,2%	7.077	9,7%	-7,8%
EBIT	5.726	6,8%	4.498	6,2%	-21,4%
Pretax Income	6.435	7,7%	4.710	6,5%	-26,8%
	31/12/19		31/03/20
			unaudited
Net financial position	61.419		27.477

Cash Flow Q1-2020

Revenue breakdown by business Q1-20

Revenue breakdown by area Q1-20

Current Outlook

Revenue

Q2 Vs Q1:

• Medical slowdown
• Industrial recovery

Cost reduction

Q2 Vs Q1:

• Employees cost: "Cassa integrazione"
• S&M activities: travel ban and suspended congresses and fairs

Multiples & Comparables

Multiples

Stockholder's Equity per share	11,4
Price / Book Value Adj.	1,7
EV /EBIT (90% EBIT)	20,4
EV / Sales (90% Sales)	1,3
El.En. Market Cap.	372,2	@	€ 19,00
Net financial position	27,5	@	31/03/20
Financial investments m/l term	15,0	@	31/03/20
Enterprise Value	329,8

37

Comparables

		Amounts in mln
March 31st, 2020
	Price	Revenue	Var.%	EBIT	EBIT %	MK.Cap.	EV	EV/Sales	EV/EBIT	P/Book
			Rev.					(*)	(*)	Value
Medical/Aesthetic
Cutera	\$12,90	\$32	-11%	\$(12)	-38%	\$225	\$213	1,7	n.a.	6,7
InMode	\$26,55	\$40	32%	\$7	16%	\$887	\$685	4,2	25,8	4,6
Venus	\$3,03	\$15	-41%	\$(44)	-300%	\$98	\$148	2,6	n.a.	2,1
Sisram Medical (2)	\$0,33	\$174	13%	\$24	14%	\$145	\$40	0,2	1,7	0,5
Lutronic	€ 4,44	€ 19	3%	€ 0	-2%	€ 123	€ 108	1,4	n.a.	1,4
Industrial
IPG Photonics Co.	\$155,00	\$249	-21%	\$45	18%	\$8.220	\$7.029	7,1	39,2	3,5
Prima Industrie	€ 12,88	€ 75	-24%	-€ 3	-3%	€ 135	€ 268	0,9	n.a.	0,8
Han's Laser	¥29,67	¥1.500	-29%	-¥20	-1%	¥31.200	¥32.681	5,4	n.a.	3,5
El.En. (1)	€ 19,00	€ 73	-13%	€ 4	6%	€ 372	€ 330	1,3	20,4	1,7

(1) EV and multiplies as for previous slide

(2) Data on December 31st, 2019

(*) Revenue,Ebit and earnings annualized

38

Comparables

Contacts

El.En. S.P.A.

Enrico ROMAGNOLI Investor Relations Manager tel. +39 055-8826807 E-mail: finance@elen.it

POLYTEMS HIR

Financial Communication, IR and Press Office Bianca FERSINI MASTELLONI - b.fersini@polytemshir.it Silvia MARONGIU - s.marongiu@polytemshir.it Tel. +39 06-69923324