Emak — Investor Presentation 2015

Jul 1, 2015

Emak at a glance

Group's shareholders

Emak Group designs, manufactures and distributes ^a wide range

of products in three different segments:

• (i) Outdoor Power Equipment49% of sales;
• (ii) Pumps and High Pressure Water Jetting23% of sales;
• (iii) Components and Accessories28% of sales.

In 2014 Emak Group realized ^a total turnover of € 355 million andcounted more than 1,500 employees.

European Midcap Event - Paris 2015

• Gardening, forestry and small agricultural equipment.
• Sales through specialised dealer channel.
• Global distribution network.
• Target users: high demanding private and professionals.
• Continuous investments in product innovations.
• Broad and complete product range.
• Production plants: 2 in Italy, 2 in China.

Chainsaw

Outdoor Power Equipment (OPE)

Raider

Transporter

Moto cultivator

Trimmer

Lawnmower

Pumps and High Pressure Water Jetting (PWJ)

• Leading position on the market of diaphragm pumps for agriculture. Products are sold mainly to manufacturers of spraying and weeding equipment.
• Industrial pumps are sold to OEM; high pressure washers and hydrodynamic units to specialised dealers and contractors.
• Focus on expanding in the high and very high pressure segments: among the most profitable level of the market.
• Production plants: 3 in Italy, 1 in Brasil.

Piston pumps for industrial applications

High pressure washers

Hydrodynamic units

Diaphragm pumps for agriculture

Urban cleaning systems

European Midcap Event - Paris 2015

Components and Accessories (C&A)

• Leading position in the market of nylon line for trimmers.
• Focus on the most professional segment.
• Focus on technological innovation: investments in

electronic applications for agriculture (precision farming).

• Products sold to OEM and specialised dealers.
• Strong relationships with OEMs .
• Quality of service .
• Production plants: 1 in Italy, 1 in China; 1 in France; 1 in
• USA; 1 in South Africa, 1 in Chile.

Line and heads for trimmers

Accessories for chain saws

Seats and technical spare parts for tractors

Guns, nozzles and valves for pressure washers and agricultural applications

European Midcap Event - Paris 2015

Business seasonality *

* Last 3 years average

Global presence

G r o p u	E l m p o e e s y
E u r o p e	1, 0 8 4
A i m e r c a s	1 0 4
A i A f i O i s a, r c a, c e a n a	3 8 6
T t o	l 5 1, 7 4 a
/ / A 3 1 1 2 2 0 1 4 t

Industrial footprint

• 16 production plants
• Each plant has specific characteristics for the

products manufactured

Overall surface of 160,000 m²

Our strategy

INNOVATION

Continuous investments in product innovation, focusing on new technologies, safety, comfort, and emissions control

DISTRIBUTION

• Consolidate the position in the markets with direct presence
• Expand distribution network in markets with high growth potential

EFFICIENCY

• Improve lean manufacturing system
• Exploit supply chain efficiencies
• Cost reduction plan

ACQUISITIONS

• Access new technologies
• Complete product range
• Penetrate new markets

Emak Strenghts

Wide range of products

Commitment to innovation

Global distribution network

High level of service

Efficient production footprint

Strong cash generation

Stated dividend policy: 40% of net profit

More than €65mln distributed to shareholders since the listing

Financial results – 1Q 2015

/m € ln	Q 1 2 0 1 5	Q 1 2 0 1 4	∆	2 0 1 4
Sa les	1 0 9. 8	1 0 5. 8	3. 8 %	3 5 4. 8
E B I T D A	1 4. 3	1 3. 3	6. 8 %	3 1. 5
in ma rg	13. 0%	12. 6%		8.9 %
E B I T D A d j a	1 1 5.	1 3. 3	1 3. 0 %	3 3. 2
in ma rg	13. 7%	12. 6%		9.4 %
E B I T	1 1. 4	1 0. 6	7. 7 %	2 0. 1
in ma rg	10. 4%	10. 0%		5.7 %
Ne f i t p t ro	6. 8	5. 9	1 6. 5 %	1 0. 3
in ma rg	6.2 %	5.6 %		2.9 %
f fro Fr h low ion t ee c as m op er a s	9. 7	8. 6		2 1. 7
Ne Eq i t ty u	1 7 2. 3	1 5 6. 2		1 6 0. 2
Ne f ina ia l de b t t nc	1 0 7. 7	1 0 4. 5		7 9. 0
Ne k ing i l t w ta or c ap	1 8 6. 6	1 1. 6 7		1 4 8. 6
Ne f ixe d t ts as se	9 3. 4	8 9. 1		9 0. 6

Sales: Positive trend in main markets. Still difficulties inRussia and Ukraine.

EBITDA: positive contribution of higher sales volumesand product mix. Negative impact of non-recurring itemsand exchange rates.

Net Profit: Positive forex for €0.3mln (negative for€0.5mln in 2014).

Free cash flow from operations after tax amounts to€9.7mln.

Net fin. Debt and Net Working Capital: increase coherent with business seasonality and affected by exchangerates.

Outdoor power equipment (OPE) – 1Q 2015

€ / ln m	O U T D O O R	P O W E R E Q	U I P M E N T
	Q 5 1 2 0 1	Q 1 2 0 1 4	Va % r.
Eu ro p e	4 3. 3	4 8. 4	-1 0. 6 %
A ic m er as	3. 5	2. 5	4 2. 0 %
A ia A fr ic d O ia s a an ce an ,	2 5.	2. 9	% 7 7. 5
To l ta	5 1. 9	5 3. 8	-3 4 %

•Europe: sales overall higher than last year, net of thedecrease in the markets of Russia and Ukraine. Goodperformances on the markets directly managed, amongwhich Italy, UK and Poland

•Americas: increase mainly driven by the Latin Americanmarket

•Asia, Africa and Oceania: good performance in themarkets of the Middle East and India, recovery of theTurkish market

Pumps and High pressure water jetting (PWJ) - 1Q 2015

P U M P S A N D
S S H I G H P R E U R E W A T E R
J E T T I N G
1 Q 2 0 1 5	1 Q 2 0 1 4	Va % r.
1 2. 8	1 1. 6	1 0. 7 %
1 1. 2	8. 2	3 7. 5 %
2. 7	3. 1	-1 0. 9 %
2 6. 8	2 2. 8	1 7. 4 %

•Europe: sales were higher thanks to the increase on the Italianmarket

•Americas: growth driven by the North American market andthe good results obtained in some Latin American countries, including Mexico and Chile

•Asia, Africa and Oceania: slight decrease mainly due to lowersales of industrial pumps in the Far East

•The enlarged scope of consolidation contributed for ^a total of about 0.9 €/mln

Components and accessories (C&A) – 1Q 2015

€ /m ln	C S O M P O N E N T A N D A C C E S S O R I E S
	1 Q 2 0 1 5	1 Q 2 0 1 4	Va % r.
Eu ro p e	2 1. 6	2 0. 6	4. 8 %
A ic m er as	6. 6	5. 9	1 1. 2 %
A ia A fr ic d O ia s a an ce an ,	2. 9	2. 7	8. 6 %
To l ta	3 1. 1	2 9. 2	5 6. %

E h d i l b h i h I l i t t t t t u r o p e g r o w r v e n m o s y y e n c r e a s e o n e a a n • :
k t m a r e
S A i d l b i d i h U i d t t t t t t m e r c a s g o o r e s s o a n e n e n e a e s • : u
O C A i A f i d i d f i h i • s a, r c a a n c e a n a : g o o p e r o r m a n c e n n a

Net financial position - seasonality

€/mln

Synthesis of results

€/ ml n	19 98	19 99	20 00	20 01	20 02	20 03	20 04	05 20	20 06	20 07	20 08	200 9	20 10	20 11	20 12	20 13	20 14
Sa les	84 .4	89 .5	13 3.0	14 6.7	14 7.0	15 2.7	16 3.2	18 3.4	20 8.4	21 7.8	24 3.4	19 4.9	20 6.8	20 4.4	35 4.8	35 5.0	35 4.8
EB ITD A	12 .9	12 .8	16 .0	20 .6	22 .9	23 .9	22 .6	22 .3	25 .1	30 .0	31 .7	21 .7	23 .5	17 .5	28 .8	34 .2	31 .5
in ma rg	15. 3%	14. 3%	12. 0%	14. 1%	15. 6%	15. 7%	13. 9%	12. 1%	12. 1%	13. 8%	13. 0%	11. 1%	11. 4%	8.6 %	8.1 %	9.6 %	8.9 %
EB ITD A a dj	12 .9	12 .8	16 .0	20 .6	22 .9	23 .9	22 .6	22 .3	25 .1	30 .0	31 .7	21 .7	21 .3	19 .6	31 .7	34 .2	33 .2
in ma rg	15. 3%	14. 3%	12. 0%	14. 1%	15. 6%	15. 7%	13. 9%	12. 1%	12. 1%	13. 8%	13. 0%	11. 1%	10. 3%	9.6 %	8.9 %	9.6 %	9.4 %
EB IT	9.3	8.1	10 .6	14 .8	16 .8	17 .5	16 .3	17 .0	19 .8	24 .5	24 .9	14 .9	16 .1	10 .4	16 .6	22 .4	20 .1
in ma rg	11. 1%	9.0 %	8.0 %	10. 1%	11. 4%	11. 5%	10. 0%	9.3 %	9.5 %	11. 2%	10. 2%	7.6 %	7.8 %	5.1 %	4.7 %	6.3 %	5.7 %
Ne rof it t p	5.5	3.9	6.2	7.9	9.0	9.6	9.0	9.6	11 .3	15 .2	14 .9	9.4	11 .6	5.8	8.6	10 .5	10 .3
in ma rg	6.5 %	4.4 %	4.7 %	5.4 %	6.1 %	6.3 %	5.5 %	5.2 %	5.4 %	7.0 %	6.1 %	4.8 %	5.6 %	2.8 %	2.4 %	3.0 %	2.9 %
Fre h e c as flo fro tio w m op era ns	9.1	8.6	11 .6	13 .7	15 .1	16 .0	15 .3	14 .8	16 .7	20 .8	21 .6	16 .2	19 .0	12 .9	20 .8	22 .4	21 .7
Ne t E ity qu	42 .1	44 .8	48 .8	53 .8	59 .3	65 .1	69 .8	.4 75	81 .9	91 .4	99 .4	10 4.6	11 4.0	14 0.1	14 5.0	15 0.8	16 0.2
Ne t fi ial de bt na nc	3.2	5.5	14 .3	26 .4	19 .1	21 .1	16 .4	25 .8	37 .9	31 .0	61 .8	38 .0	27 .4	97 .3	99 .9	76 .4	79 .0
bt/ De Eq uit y	0.1	0.1	0.3	0.5	0.3	0.3	0.2	0.3	0.5	0.3	0.6	0.4	0.2	0.7	0.7	0.5	0.5

Aimone Burani, the executive responsible for the preparation of the corporate accounting documents, declares and certifies inaccordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in thispresentation correspond to the underlying accounting documents, records and accounting entries.

Emak S.p.AVia E. Fermi, 442011 Bagnolo in Piano – RE [Italy] info@emak.itwww.emak.it

Speakers

Mr. Fausto Bellamico – Chairman and CEOMr. Aimone Burani – Deputy Chairman and CFOMr. Andrea La Fata – Investor Relatoralafata@emak.it0039-0522.956.332