Emak — Investor Presentation 2019

May 15, 2019

European Midcap Event, Copenhagen May 16, 2019

Emak at a glance

Global presence

Direct presence in 14 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 and piston pumps	• Agriculture: spraying and weeding	• Manufacturers of spraying and weeding machines	• Product innovation • Cost and efficiency improvements
	• Industrial products: piston pumps, hydrodynamic units and urban cleaning equipment.	• Several industries:  Oil & gas  Sugar cane  Shipyard  Cleaning	• Manufacturers of hydrodynamic units and high pressure washers, contractors, independent distributors	• Maximize synergies from acquisitions • Focus on key attractive segments
	• Cleaning products: complete range of high pressure washers, floor care equipment	• Professional • Hobby	• Specialised dealers and DIY

Components & Accessories

DIY

Our strategy

Emak strengths

1Q 2019 highlights

Net sales: decrease of 6.7%

EBITDA: negative impact of lower sales volumes and higher raw material costs. IFRS 16 effect of 1.4 €m

Financial income: 2018 figure included financial capital gain for 2.5 €m.

Net financial position €m

interests in subsidiaries. IFRS 16 effect of 27.2 €m

Outdoor Power Equipment

EBITDA Adjusted €m

Sales:

• Europe: growth in Italy, stable in West European Countries. Decrease in some East European Countries due to high level of stocks.
• Americas: positive performances in North American Countries have more than offset the decrease in South America.
• Asia, Africa and Oceania: Despite a growth in China, sales are affected by Turkey's instability.

EBITDA

7.0% Affected by lower sales volumes

Pumps and High Pressure Water Jetting

Sales to third parties €m

8.8 7.9 0.7 1Q 2018 IFRS 16 Organic performance 1Q 2019 15.7% on total sales 17.7% on total sales

EBITDA

Sales

American markets

Far East.

Organic decrease due to price pressure, more marketing activities and strengthening of technical structure to support product and process innovation aimed at Goup's growth.

Europe: decrease due to slowndown in economic growth.

Asia, Africa and Oceania: good performance, mainly in the

Americas: substantially stable, positive trend of Latin

Components and Accessories

Sales to third parties €m

EBITDA Adjusted €m

Sales

• Negative impact from Raico deconsolidation
• Europe: positive result on the Italian market.
• Americas: good performance in Latin American markets by Chilean and Brazilian subsidiaries.
• Asia, Africa and Oceania: decrease mainly attributable to lower sales of gardening and cleaning products.

EBITDA

• Affected by lower sales volumes
• Unfavorable product mix
• Figure adjusted for non-ordinary costs for 0.2 €m

2019 events

Acquisition of 30% of Agres

• Headquarter in Pinais (Paranà), Brasil
• Activity: development and supply, mainly on the local market, of electronic systems (software, hardware and related services) for agricultural machines (spraying and weeding machines and seeders)
• Value of the transaction: 11.7 million Reais (approximately 2.8 €m)
• Further agreements: Put & Call Option on a further 55% stake to be exercised in 2023.
• 2018 company results: sales of 21.7 million Reais.

Consolidated income statement

FY 2018	€m	1 Q 2019 no IFRS 16	IFRS 16 impact	1 Q 2019 IFRS 16	1Q 2018
452.8	Revenues from sales	122.4		122.4	131.2
5.5	Other operating incomes	1.0		1.0	1.4
4.6	Change in inventories	7.2		7.2	3.6
(243.2)	Raw materials, consumable and goods	(73.1)		(73.1)	(73.9)
(83.3)	Personnel expenses	(21.2)		(21.2)	(21.8)
(87.0)	Other operating costs and provisions	(23.5)	1.4	(22.1)	(23.1)
49.4	Ebitda	12.8	1.4	14.1	17.3
(15.5)	Amortization, depreciation and impairment losses	(3.9)	(1.2)	(5.1)	(3.6)
34.0	Operating result	8.9	0.1	9.0	13.7
5.3	Financial income	0.1		0.1	3.0
(4.8)	Financial expenses	(1.1)	(0.2)	(1.3)	(1.2)
0.1	Exchange gains and losses	0.6		0.6	(0.8)
0.3	Income from/(expenses on) equity investment	(0.0)		(0.0)	0.0
34.9	Profit befor taxes	8.5	(0.04)	8.4	14.7
(9.2)	Income taxes			(2.3)	(3.5)
25.6	Net profit			6.1	11.2

31.12.2018	€m	31.03.2019	31.03.2018
	Non-current assets
75.4	Property, plant and equipment	76.9	72.6
20.2	Intangible assets	20.7	19.9
65.8	Goodwill	66.3	66.4
-	Right of use	26.8	-
0.2	Equity investments in other companies	0.2	0.2
4.6	Equity investments in associates	7.3	4.3
8.5	Deferred tax assets	8.9	8.4
2.5	Other financial assets	2.5	0.7
0.1	Other assets	0.1	0.1
177.2	Total non-current assets	209.6	172.6
	Current assets
156.7	Inventories	165.3	154.5
108.3	Trade and other receivables	143.1	145.7
6.0	Current tax assets	4.7	4.4
0.6	Other financial assets	0.6	7.1
0.3	Derivative financial instruments	0.8	0.2
62.6	Cash and cash equivalents	47.6	44.5
334.5	Total current assets	362.1	356.4
511.7	TOTAL ASSETS	571.6	529.0

Consolidated balance sheet - Liabilities

31.12.2018	€m	31.03.2019	31.03.2018
	Shareholders' Equity
203.7	Shareholders' Equity of the Group	211.9	195.7
2.1	Non-controlling interest	2.2	2.2
205.8	Total Shareholders' Equity	214.1	197.9
	Non-current liabilities
113.3	Loans and borrowings due to banks and other lenders	101.8	94.6
-	Liabilities for leasing	22.5	-
8.4	Deferred tax liabilities	8.3	9.1
8.8	Employee benefits	8.5	9.5
2.2	Provisions for risks and charges	2.2	2.2
0.5	Other non-current liabilities	0.5	0.6
133.1	Total non-current liabilities	143.9	116.0
	Current liabilities
95.9	Trade and other payables	113.8	108.5
4.9	Current tax liabilities	6.6	6.4
69.4	Loans and borrowings due to banks and other lenders	85.9	97.3
-	Liabilities for leasing	4.7	-
0.6	Derivative financial instruments	1.0	0.2
1.9	Provisions for risks and charges	1.7	2.6
172.7	Total current liabilities	213.6	215.1
511.7	TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	571.6	529.0

Appendix

Emak Group – Our History

European Midcap Event, Copenhagen 2019 18

Shareholders' structure

Synthesis of results

€m	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2011 PF	2012	2013	2014	2015	2016	2017	2017 PF	2018
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	357.0	354.8	355.0	354.8	381.6	391.9	422.2	461.8	452.8
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	37.8	31.7	34.2	33.1	37.5	40.5	45.6	52.5	50.8
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%	10.6%	8.9%	9.6%	9.3%	9.8%	10.3%	10.8%	11.4%	11.2%
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	25.8	19.6	22.4	21.7	25.0	22.9	31.7	38.1	36.3
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%	7.2%	5.5%	6.3%	6.1%	6.5%	5.8%	7.5%	8.2%	8.0%
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	13.0	8.6	10.5	10.2	9.0	17.7	16.4	20.6	25.6
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%	3.6%	2.4%	3.0%	2.9%	2.4%	4.5%	3.9%	4.5%	5.7%
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	25.0	20.8	22.4	21.7	21.5	35.3	30.4	35.0	40.1
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	140.1	145.0	150.8	160.1	168.5	181.7	187.5	187.5	205.8
Net fin. 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	97.3	99.9	76.4	79.0	99.4	80.1	125.3	125.3	117.4
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	237.4	244.9	227.2	239.1	267.9	261.8	312.8	312.8	323.2
NWC	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	157.5	155.9	142.2	148.6	154.6	145.6	161.8	161.8	168.3
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	0.7	0.5	0.5	0.6	0.4	0.7	0.7	0.6
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	2.6	3.1	2.2	2.4	2.7	2.0	2.7	2.4	2.3

* Calculated by adding the items "Net profit" plus "Amortization, depreciation and impairment losses"

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; acquisition of Spraycom

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-