Gefran — Investor Presentation 2016

Oct 7, 2016

LONDON STAR CONFERENCEOctober ⁷th, ²⁰¹⁶

PRODUCT PORTFOLIO IN THE INDUSTRIAL AUTOMATION BUSINESS

WE COVER THE AUTOMATION SUPPLY CHAIN WITH SPECIFIC PRODUCTS

WE ARE SPECIALIST IN SPECIFIC APPLICATIONS

WE DIRECTLY COVER MATURE AND EMERGING MARKETS WITH A BALANCED PORTFOLIO

• ^A well balanced business portfolio, with about 70% of products dedicated toindustrial applications
• Gefranexports about two thirds of its revenues (1H2016 data)

SENSORS

SENSORS – Devices that convert ^a physical quantity in an electric signal.

Gefran sensors ensure HIGH ACCURACY and RELIABILITY to the measurement of process variables: PRESSURE, POSITION, TEMPERATURE and FORCE.

Gefran sensors are used in ^a variety of industries.

Critical success factors: technology, product quality, presence in the distributionchannels.

AUTOMATION COMPONENTS

INSTRUMENTS - Hardware and software for indication and regulation of process variables.

Gefran instruments have set market standards.

Gefran is leader in temperature controllers segment thanks to its wide range of:

• Indicators
• High performance controllers and programmers

Critical success factors: capillary distribution chain (both generalists and specialized distributors), application know how.

PC & PLC hardware and software for regulation of process variables: Automation platforms, HMI, PLC, Software

Critical success factors: reputation, technical service, pre and post sales assistance, key account references.

MOTION CONTROL

MOTION CONTROL –Drives for the speed control od AC, DC and brushless motors

INDUSTRIAL APPLICATIONS - High power inverters with or without combination with regenerative power supplies, with different technological product levels.Critical success factors: wide range, personalization.

CIVIL APPLICATIONS- High power inverters with or without combination with regenerative power supplies, with different technological levels of product.Critical success factors: technology, know-how, performance e reliability.

CUSTOM PROJECTS- Inverters that meet different application requirements, are basedon specific application software. Examples: Plastic – Wellness

OUR COMPETITIVE ADVANTAGE

R&D – TECHNOLOGY DEVELOPEMENT DESIGN AND PRODUZTION FLEXIBILITYAPPLICATION KNOW HOW

The technological evolution of its products is an important factor for potential future growth, Gefran typically invests more than 6% of its turnover to R&D activities whichare concentrated mainly in Italy in company laboratories located in Provaglio d'Iseoand Gerenzano. 10% of the total workforce is dedicated to R&D activities.

WE ARE PRESENT IN RELEVANT MARKETS WITH PRODUCTION SITES AND COMMERCIAL SUBSIDIARIES

07/10/2016

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Ist SEMESTER RESULTS

€'000	30-06-2016	%	30-06-2015	%
REVENUES	59.662		59.865
VALUE ADDED	40.297	67,5%	41.043	68,5%
EBITDA	4.626	7,8%	2.737	4,6%
EBIT	1.512	2,5%	(460)	$-0,8%$

Ist SEMESTER RESULTS: KEY FACTS

Revenues stable

Well North America and Europe, driven by GermanyIn contraction Asia and South America (exchange rate)The order Backlog grew by 23%

• Decreased personnel costs, benefits of the Group reorganization outweigh restructuring costs effect
• PFN in improvement
• Sold part of the photovoltaic branch, with a put option for the 100%

BUSINESS AREA RESULTS at 30thJune

	S e n s o r s		i A t t t u o m a o n c o m p o n e n s		i l M C t t o o n o n r o
'0 in € 0 0	I H 2 0 1 6	I H 2 0 1 5	I H 2 0 1 6	I H 2 0 1 5	I H 2 0 1 6	I H 2 0 1 5
R E V E N U E S	2 5. 2 3 7	2 5. 0 4 6	1 6. 4 8 4	1 6. 4 9 4	1 9. 5 3 6	2 0. 1 2 6
E B I T D A	6. 6 7 8	6. 1 2 5	6 8 0	2 1 5	( ) 2. 7 3 2	( ) 3. 6 0 3
E B I T D A %	2 6, 5 %	2 4, 5 %	4, 1 %	1, 3 %	( ) 1 4 %	( ) 1 7, 9 %
E B I T	5. 5 7 6	5. 0 7 7	( ) 2 5 3	( ) 8 2 8	( ) 3. 8 1 1	( ) 4. 7 0 9
I % E B T	2 2, 1 %	2 0, 3 %	( ) 1, % 5	( ) % 5	( ) 1 9, % 5	( ) 2 3, 4 %
	f l 3 2 % o s a e	s	f % 4 1 o s a	l e s	2 % 7 o	f l s a e s

GEOGRAPHICAL AREA RESULTS at 30thof June

'0 i € 0 0 n	2 0 6 I H 1	%	2 0 I H 1 5	%	Δ
I T A L Y	1 7. 6 4 9	% 2 9, 6	1 7. 7 1 5	% 2 9, 6	% 0, 4 -
E U	1 6. 5 6 7	% 2 7, 8	1 6. 3 7 8	% 2 7, 4	% 1, 2 +
E U R O P A N O N E U	3. 2 7 4	% 5, 5	3. 2 1 2	% 5, 4	% 1, 9 +
N O H A I C A R T M E R	4 1 6 7.	1 2, 4 %	6. 9 1 8	1 1, 6 %	2 % 7, +
S O U T H A M E R I C A	1. 8 7 5	% 3, 1	2. 3 3 7	% 3, 9	% 1 9, 8 -
A S I A	1 2. 5 6 7	2 1, 1 %	1 3. 0 3 4	2 1, 8 %	3, 6 % -
O R W	3 1 4	0, % 5	2 7 1	0, % 5	9 % 1 5,

BALANCE SHEET

'0 € 0 0	3 0 Ju 2 0 1 6 ne	3 0 Ju 2 0 1 5 ne
f ixe d Ne t ts as se	6 0. 8 3 3	6 2. 7 1 7
Inv ie to en r s	2 2. 7 6 6	2 2. 6 7 4
de b les Tr iva a re ce	3 1. 9 2 6	3 4. 0 2 3
de b les Tr a p ay a	-1 8. 5 0 7	-1 6. 5 3 1
/ he b les O t t a ts r n e ss e p ay a	-7 8 6 1	-8 2 4 6
k l Ne W in Ca i t ta or g p	2 8. 3 2 4	3 1. 9 2 0
he O t t a ts r n on c ur re n ss e	-9 3 2 0	-8 1 2 9
la b le fo les As i t a se va r s a	1. 2 1 4	1. 3 5 4
d l Ne In Ca i t te ta ve s p	8 1. 0 1 5	8 8 6 2 7.
' ha ho l de i S Eq ty re rs u	6 2. 5 6 7	6 2. 9 8 4
ho in ia l b S F De t- te t r rm an c	-2 2 3 3	1 3. 9 9 9
l b Lo in ia F De -te t rm an c	2 0. 1 7 7	1 0. 8 9 7
ng in ia l i io Ne F Po t t an c s n	1 8. 4 8 4	2 4. 8 7 8
l f d in To So Fu ta ur ce s o n g	8 1. 0 5 1	8 7. 8 6 2

CASHFLOW

'0 € 0 0	2 0 1 6	2 0 1 5
h f l G C r o s s a s o w	4. 6 5 7	( ) 4 8 3
h k l C i W i C i t a n g e n o r n g a p a	3. 9 8 1	( ) 9 8 6
h f l i O C t p e r a n a s o g w	8. 6 3 8	( ) 1. 4 6 9
h f l d d C i C i t t a s o s e n a p e a n n e s m e n w u x v i i i t t a c v e s	( ) 1. 5 5 4	( ) 2. 6 2 9
h f l F C r e e a s o w	7. 0 8 4	( ) 4. 0 9 8
( ) h f l f f C i i i i i t t t a s o w r o m o n a n c n g a c v e s	( ) 1 1. 7 9 2	5. 9 4 2
d d d d h i i i O D t v e n s p a a n e r	4 4 5	6 5 5
h & h l O i C C i t p e n n g a s a s e q u v a e n s	2 4. 6 0 2	2 0. 7 3 2
( ) h C I D a s n c r e a s e e c r e a s e	( ) 4. 2 5 4	2. 4 0 0
l h h l C i C & C i t o s n g a s a s e q a e n s u v	2 0. 3 8 4	2 3. 3 2 1

TARGET 2016

SUSTAINABLE GROWTH: back to profitability

• Investment and commercial actions aimed at the sensors business that guarantee most of the Group's business margins
• Improving components performances
• Decreasing absorption of resources by the Motion

TARGET 2016

SENSORS AND COMPONENTS- Integration of the sales and marketing organization to increase efficiency and optimize synergies

MOTION CONTROL - Specialized sales force driven independently and directly directed on the market: in the short term we aim margins recovery not to revenue growth

Restructuring plan in Gefran Spa: April-December 2016

Saving of costs and lighten structures

EBITDA 8%EBIT 3 / 3,5%