Emak — Investor Presentation 2018

Jun 26, 2018

European Midcap Event, Paris June 27, 2018

Emak at a glance

Global presence

Direct presence in 13 countries Distribution network in five continents Efficient production footprint 2,000+ employees

Outdoor Power Equipment

Main brands	Product range	End-users	Distribution channel	Strategic priorities
	• Hand held products: trimmers, chainsaws, blowers. • Wheeled products: lawnmowers, garden tractors, tillers, transporters. • Accessories and spare parts	• Professional users • High demanding private users (prosumer)	• Specialised dealers	• Product innovation • Distribution network • Efficiency

Pumps & High Pressure Water Jetting

Main brands	Product range	Application / End user	Clients / distribution channel	Strategic priorities
	• Agriculture products: diaphragm, centrifugal	• Agriculture: spraying and weeding	• Manufacturers of spraying and weeding	• Product innovation • Cost and efficiency
	and piston pumps		machines	improvements • Maximize synergies
	• Industrial products: piston pumps, hydrodynamic units and urban cleaning	• Several industries:  Oil & gas  Sugar cane  Shipyard	• Manufacturers of hydrodynamic units and high pressure washers, contractors, independent	from acquisitions • Focus on key attractive segments
	equipment.	 Cleaning	distributors
	• Cleaning products: complete range of high pressure washers, floor care equipment	• Professional • Hobby	• Specialised dealers and DIY

Components & Accessories

• Nylon line and heads for trimmers • Chain grinders	• Professional users • High demanding private users (prosumers)	• Outdoor Power Equipment manufacturers	• Product innovation • Strengthening of OEM relations
• Spray guns • Nozzles • Control systems		• Manufacturers of spraying and weeding machines	• Focus on key attractive segments
		• Manufacturers of hydrodynamic units and high pressure washers • Specialised dealers and
		DIY

Our strategy

Emak strengths

1Q 2018 highlights

Sales: positive contribution of newly acquired Lavorwash Group for 18.3€m

Net Profit: tax rate at 23.7% (28.5% excluding capital gain's benefit) compared to 29.9% in 1Q 17.

EBITDA adjusted: Lavorwash contribution for 3.4€m, organic performance affected by unfavorable weather conditions.

Net Debt increase due to seasonal build up of net working capital.

Outdoor Power Equipment

€m	1Q 2018	1Q 2017	Δ %
Europe	40.3	44.5	-9.4
Americas	1.9	3.0	-35.9
Asia, Africa and Oceania	6.7	5.0	34.5
Sales to third parties	48.9	52.5	-6.7
Intersegment sales	0.8	0.5
Revenues from sales	49.7	52.9	-6.1
Ebitda*	4.3	4.9
% on Revenues from sales	8.6%	9.2%

* Figure doesn't include holding costs

• SALES:

• Europe: late start of gardening season and high levels of stock at the sales network
• Americas: negative performance in Latin American markets
• Asia, Africa, Oceania: higher sales in the Middle East
• EBITDA:
• Lower sales' volumes
• Decrease of personnel costs due to personal reorganization plan
• Non recurring costs for € 0.4 million

Pumps and High Pressure Water Jetting

€m	1Q 2018	1Q 2017	Δ %
Europe	28.3	13.5	110.4
Americas	15.5	13.9	11.8
Asia, Africa and Oceania	5.4	2.8	89.9
Sales to third parties	49.3	30.2	63.2
Intersegment sales	0.5	0.5
Revenues from sales	49.8	30.7	62.0
Ebitda	8.5	5.2
% on Revenues from sales	17.1%	17.0%

• SALES:

• Contribution of Lavorwash for € 18.3 million
• Europe: organic growth driven by Western countries
• Americas: substantial stability at organic level
• Asia, Africa, Oceania: good performance especially in Far East.
• EBITDA:
• Increase in sales
• Expansion of the scope of consolidation
• Non recurring costs for € 0.3 million

Components and Accessories

€m	1Q 2018	1Q 2017	Δ %
Europe	21.4	24.4	-12.3
Americas	7.0	8.6	-18.7
Asia, Africa and Oceania	4.6	3.5	29.1
Sales to third parties	33.0	36.5	-9.8
Intersegment sales	2.5	2.4
Revenues from sales	35.5	38.9	-8.8
Ebitda	5.5	8.1
% on Revenues from sales	15.5%	20.7%

• SALES:

• Europe: late start of gardening season
• Americas & Asia, Africa, Oceania: sales substantially in line with the same period last year. New distribution logistic model determined the differences recorded in the two areas.
• EBITDA:
• Lower sales' volumes
• Increase in the cost of raw materials

1Q 2018 key figures

€m	1Q 2018	%	1Q 2017	%	Δ %
Net sales	131.2	100	119.2	100	10.0
Ebitda Adj (*)	18.1	13.8	17.3	14.5	4.6
Ebitda	17.3	13.2	17.3	14.5	(0.1)
Ebit	13.7	10.4	14.2	11.9	(4.0)
Profit before taxes	14.7	11.2	13.2	11.1	11.3
Net profit	11.2	8.5	9.3	7.8	20.9

(*) Excluding items affecting comparability

€m	31.03.2018	31.12.2017	31.03.2017
Net non-current assets	150.5	113.4	118.8
Net working capital	187.1	185.5	173.2
Net capital employed	337.7	299.0	292.0
Total Equity	197.9	173.9	191.1
Net debt	(139.8)	(125.1)	(100.9)

1Q 2018 summary

Synthesis of results

€/mln	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Sales	84.4	89.5	133.0	146.7	147.0	152.7	163.2	183.4	208.4	217.8	243.4	194.9	206.8	204.4	354.8	355.0	354.8	381.6	391.9	422.2
EBITDA adj	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	33.1	37.5	40.5	45.6
margin	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%	9.3%	9.8%	10.3%	10.8%
EBIT adj	9.3	8.1	10.6	14.8	16.8	17.5	16.3	17.0	19.8	24.5	24.9	14.9	13.9	12.5	19.6	22.4	21.7	25.0	22.9	31.7
margin	11.1%	9.0%	8.0%	10.1%	11.4%	11.5%	10.0%	9.3%	9.5%	11.2%	10.2%	7.6%	6.7%	6.1%	5.5%	6.3%	6.1%	6.5%	5.8%	7.5%
Net profit	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	10.2	9.0	17.7	16.4
margin	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%	2.4%	4.5%	3.9%
FCF from operations	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	21.5	35.3	30.4
Net Equity	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	160.1	168.5	181.7	187.5
Net financial debt	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	99.4	80.1	125.3
Net capital employed	45.3	50.3	63.1	80.3	78.5	86.2	86.3	101.2	119.7	122.5	161.2	142.6	141.4	237.4	244.9	227.2	239.1	267.9	261.8	312.8
Net working capital	27.5	32.1	43.7	55.6	54.2	60.2	59.3	66.4	81.8	81.1	103.2	82.9	83.7	157.5	155.9	142.2	148.6	154.6	145.6	161.8
Debt/Equity	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	0.6	0.4	0.7
Debt/EBITDA adj	0.2	0.4	0.9	1.3	0.8	0.9	0.7	1.2	1.5	1.0	2.0	1.8	1.3	5.0	3.1	2.2	2.4	2.7	2.0	2.7

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) 2016: Acquisition of 30% of Cifarelli S.p.A. 2017: Acquisition of Lavorwash Group 2018: Sale of Raico

Appendix

Emak Group – Our History

Shareholders' structure

Sale of 100% of Raico S.r.l.

• On March 6, 2018 the parent company Emak S.p.A. has signed a binding agreement for the sale of 100% of the share capital of Raico S.r.l. for a consideration of 5.5 €m. The closing of the transaction took place on March 30, 2018.
• Raico is specialised in the distribution of spare parts and accessories for agricultural tractors, industrial and construction machines, with a turnover of around 12.8 €m, EBITDA of 0.5 €m and a net negative financial position of 0.7 €m at 31 December 2017.

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

Emak S.p.A 42011 Bagnolo in Piano (RE) Italy www.emakgroup.com www.linkedin.com/company/emap-s-p-a-

Speakers

Mr. Fausto Bellamico – Chairman and CEO Mr. Aimone Burani – Deputy Chairman and CFO Mr. Andrea La Fata – Investor Relator alafata@emak.it - 0039-0522.956.332