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Emak

Investor Presentation Oct 5, 2015

4407_ip_2015-10-05_c6f9a47c-9e49-4957-b9ec-5a2457093d4a.pdf

Investor Presentation

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Emak at a glance

Emak Group designs, manufactures and distributes a wide range of

products in three different segments:

  • (i) Outdoor Power Equipment (OPE)
  • (ii) Pumps and High Pressure Water Jetting (PWJ)
  • (iii) Components and Accessories (C&A)

Outdoor Power Equipment (OPE)

  • 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

Trimmer

Lawnmower

Transporter

Tiller

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

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

Precision farming

Accessories for chain saws

Seats and technical spare parts for tractors

Guns, nozzles and valves for pressure washers and agricultural applications

Global presence

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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
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Financial results – 1H 2015


/m
ln
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3
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1
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9
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9.
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E
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A
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4
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ma
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Sales: persistent organic growth and contribution of acquisitions.

EBITDA: positive contribution of higher sales volumes andproduct mix. Negative impact of non recurring expenses in theamount of € 1.3 million.

Net Profit: higher tax rate due to non recurring items.

Net fin. Debt: increase mainly related to the change in thescope of consolidation, worth € 28.6 million

Net Working Capital: increase coherent with businessseasonality, higher sales and the enlargment of the scope of consolidation.

Outdoor power equipment (OPE) – 1H 2015


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• Europe: sales grew primarily in the markets manageddirectly by the Group, and have been penalized by thedecline in the markets of Russia and Ukraine.

• Americas: positive performance of Latin America'smarkets.

• Asia, Africa and Oceania: positive results obtained in theFar East and the Middle East.

Pumps and High pressure water jetting (PWJ) – 1H 2015

/

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•Europe: higher sales than the previous year, maintaining theprogression recorded earlier in the year.

•Americas: growth driven by the North American market andthe good results achieved in some countries in Latin America. The result has also benefited from the first-time consolidation of Lemasa from April.

•Asia, Africa and Oceania: in the area continued difficultiesalready recorded earlier this year.

•The enlarged scope of consolidation contributed for a total of about € 4.6 million.

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

/

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•Europe: sales in progress despite the slight decline recordedin the second quarter, after a good start of the year, on theItalian market.

•Americas: increase was driven by the United States. LatinAmerican markets recorded a marginal decline compared tothe same period, despite the good performance recorded inthe second quarter. .

•Asia, Africa e Oceania: good results mainly due to the goodperformance recorded in the markets of the Far East.

Net financial position - seasonality

Synthesis of results

€/m
ln
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
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200
9
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10
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11
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12
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Sa
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84
.4
89
.5
133
.0
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.7
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.0
152
.7
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.2
183
.4
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8.4
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7.8
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3.4
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6.8
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4.4
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4.8
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5.0
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4.8
EB
ITD
A
12
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31
.5
in
ma
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15.
3%
14.
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12.
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7%
13.
9%
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1%
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13.
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1%
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8.6
%
8.1
%
9.6
%
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%
EB
ITD
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12
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.0
20
.6
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.6
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.1
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.0
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.7
21
.7
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.3
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31
.7
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.2
in
ma
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15.
3%
14.
3%
12.
0%
14.
1%
15.
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7%
13.
9%
12.
1%
12.
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13.
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11.
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10.
3%
9.6
%
8.9
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9.6
%
9.4
%
EB
IT
9.3 8.1 10
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.8
17
.5
16
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17
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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
fit
t p
ro
5.5 3.9 6.2 7.9 9.0 9.6 9.0 9.6 11
.3
15
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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
w f
tio
rom
op
era
ns
9.1 8.6 11
.6
13
.7
15
.1
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15
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14
.8
16
.7
20
.8
21
.6
16
.2
19
.0
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.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
75
.4
81
.9
91
.4
99
.4
104
.6
114
.0
140
.1
145
.0
150
.8
160
.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
De
bt
/Eq
uity
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

1998-1999: Creation of 5 commercial branches in Western Europe. 2004: Establishment of Emak Jiangmen, production plant in China. 2005: Creation of Victus, commercial branch in Poland. 2006: Creation of Emak U.S.A. commercial branch in USA. 2008: Aacquisition of Bertolini and Tailong (cylinder manufacturer) 2011: Acquisition of Epicenter (Ukraine), Tecomet, Comet, Sabart and Raico 2012: Start-up of Emak do Brazil, acquisition of Valley in USA 2014: Acquisition of Speed Industrie Sarl (Marocco), S.I.Agro Mexico, Geoline Electronic, Master Fluid; Speed South America (Chile)2015: Acquisition of Lemasa (Brazil)

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] [email protected]

Speakers

Mr. Fausto Bellamico – Chairman and CEOMr. Aimone Burani – Deputy Chairman and CFOMr. Andrea La Fata – Investor [email protected]

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