Gefran — Investor Presentation 2020

Oct 6, 2020

STAR CONFERENCE

0 6 O C T O B E R 2 0 2 0

OUR MANIFESTO

OUR PROMISE

Gefran is strongly rooted in industrial automation and technological innovation endeavors.

We are attentive and motivated in identifying highly effective solutions, building relationships that are successful and sustainable.

This is our strength

We collaborate with organizations invested in improving technological processes, with individuals committed to their professional and talent development and competencies, with stakeholders dedicated to working together to enhance the community and its surroundings.

This is our world

WE MAKE IT EASY FOR YOU

Sensors

Measurement of process variables

Components

Hardware & software for Indication and control of process variables

Motion Control

Motion control of AC and DC

motors

WE MEAN BUSINESS

OUR VISION IS GLOBAL AND LOCAL TOO

WE EMBRACE TECHNOLOGY

The future is our present.

To be trailblazers in new technology advancements, recognized among developers of industrial value and innovation.

To lead a sustainable growth, open to the market, for companies, employees and the community.

The technological evolution of products and processes is an important factor for potential future growth for Gefran.

The skills network guaranteed by the cooperation with universities and research centers is a critical resource for the enterprise system ensuring continuous knowledge transfer.

Gefran typically invests about 5% of its turnover to R&D activities which are concentrated mainly in Italy in company laboratories located in Provaglio d'Iseo and Gerenzano. 14% of the Italian workforce is dedicated to R&D activities

MOTION CONTROL

Inverters for the speed control of AC, DC and brushless motors. They are devices that provide highly accurate, variable control of the speed of a motor.

INVERTERS FOR INDUSTRIAL APPLICATION

High power inverters with or without regenerative power supplies, in a range of different technological levels of product.

LIFT INVERTERS

SIEIdrive lift, a wide range of dedicated products, options and accessories for civil lift applications.

MOTION CONTROL

Critical success factors: technology, performance, specific application and know-how.

As a result of these distinctive elements we have the ability and the structure to offer CUSTOM PROJECTS with high level of personalization.

INSTRUMENTATION AND CONTROLS

Hardware and software for indication and regulation of process variables.

Controllers, programmers, indicators and other instruments.

POWER CONTROLLERS

Advanced power controllers, solid state power units and solid state relays for Industrial temperature control.

PROGRAMMABLE AUTOMATION AND CUSTOMER SOLUTIONS

PC, PLC, HMI and software for machine automation.

A range of integrated automation solutions that offers a global response to specific automation demands.

AUTOMATION COMPONENTS

Gefran is a leader in the European temperature controllers segment thanks to wide distribution network and personalization.

SENSORS

Devices that convert a physical quantity into an electric signal in the industry automation (machines). Gefran SENSORS ensure HIGH ACCURACY and RELIABILITY in the measurement of process variables: PRESSURE, POSITION, TEMPERATURE and FORCE.

High temperature pressure sensors

Melt pressure transducers are dedicated to applications involving high process temperatures up to 540 °C.

Linear position sensors

Linear and angular position transducers detect the position of mechanical parts in motion. Gefran manufactures a wide and unique range of models, using consolidated and new technologies, including the potentiometric technology, magnetostriction, Hall effect, MEMS, and magnetic dragging.

Pressure sensors for industrial applications

Gefran's industrial pressure transducers and transmitters measure the pressure of fluids (liquid or gaseous) in the applications required.

Sensors for measurements of process variables.

SENSORS

Critical success factors: technology, product and quality.

Competitive advantage: In-house design and production of primary elements. Patents. Know-how.

Phisical entity measured	Competitors
PRESSURE	WIKA (DE) - IFM (DE) DANFOSS (DK) - HYDAC (DE)
MELT PRESSURE	DYNISCO (US)
POSITION	MTS (US) - BALLUFF (DE) NOVOTECNIK (DE)
FORCE	CELESCO (US)
PLASTIC	MOBILE HYDRAULICS METAL

WE ARE STRONG

As at June, 2020

WE RISE TO THE CHALLENGE

2017 – 2020 GROUP PROFIT & LOSS

	HT 2020		2019		2018		20117
e/000	€ 000	%*	€ 000	%*	€ 000	%*	€ 000	%*
REVENUES	62.735	100,0% -					140.535 100,0% 135.571 100,0% 128.639 100,0%
GROSS MARGIN	41.041	65,4%	92.901		66,1% 89.754	66,2%	85.504	66,5%
EBITDA	7.336	11,7%	19.730	14,0%	20.058	14,8%	19.039	14,8%
EBIT	3.321	5,3%	10.375	7,4%	13.743	10,1%	11.149	8,7%
NET RESULT			1.139				6,0% 6,864	5,3%

2019 – 2020 GROUP EBIT

GROUP TURNOVER BY GEOGRAPHY

2017 – 2020 GROUP BALANCE SHEET

€ 000	30 Jun 2020	31 Dec 2019	31 Dec 2018	31 Dec 2017
Net Fixed Assets	68.483	70.944	61.132	59.901
Working capital Other net assets/payables Net Working Capital	31.673 =3.138 28.535	28.542 -3.484 25.058	32.055 -9.027 23.028	30.621 -9.554 21.067
Other non current assets Asset available for sales	-7.614 O	-7.671 O	-6.825 O	-7.491 1.214
Net Invested Capital	89.404	88.331	77.335	74.691
Shareholders' Equity	75.845	75.044	72.814	69.911
Short-term financial debt Long-term financial debt Net Financial Position	-16.411 29.970 13.559	-13.714 27.001 13.287	-7.343 11.864 4.521	-9.153 13.933 4.780
Total Sources of Funding	89.404	88.331	7.335	74.691

2017 – 2020 GROUP CASH FLOW

€ 000	30 Jun	31 Dec	31 Dec	31 Dec
	2020	2019	2018	2017
Opening Cash & Cash equivalents	24.427	18.043	24.006	20.477
Gross Cash Flow	7.826	15.148	22.892	17.676
Change in Working Capital	-4.875	2.897	-3.900	3.661
Operating Cash Flow	2.951	18.045	18.992	21.337
Cash Flow used in Capex	-1.922	-14.396	-9.353	-5.355
Free Cash Flow	1.029	3.649	9.639	15.982
Changes in financial debt	7.939	11.579	-6.251	-8.494
Dividends	O	-4.599	-5.040	-3.600
IFRS 16	-648	-1.190	O	O
Interests and taxes	-593	-2.846	-4.544	-2.298
Other	-138	-209	233	1.939
Cash Flow from(to) Financing Activities	6.560	2.735	-15.602	-12.453
Cash Increase (Decrease)	7.589	6.384	-5.963	3.529
Closing Cash & Cash equivalents	32.016	24.427	18.043	24.006

2017 – 2019 CAPEX

In the last three years we invested 31.085 K Euro

2018 – 2020 NET FINANCIAL POSITION

23

	Motion control
€'000	H1 2020	2019	2018	2017
REVENUES 18.825		43.953 - -	41.740	38.675
EBITDA EBITDA %	-67 -0,4%	939 2,1%	-1.707 -4.1%	-923 -2,4%
EBIT EBIT %	-1.134 -6,0%	-1.193 -2,7%	-3.547 -8,5%	-3.404 -8,8%

AUTOMATION COMPONENTS

	Automation components
000	H1 2020	2019	2018	2017
EVENUES	18.412	41.391	37.475	35.743
BITDA	1.331	4.128	3.326	3.667
BITDA %	7,2%	10,0%	8,9%	10,3%
BIT	75	1.608	1.360	1.330
BIT %	0,4%	3,9%	3,6%	3,7%

25

STOCK PRICE

MAIN SHAREHOLDERS (*)

CONTACTS

Gefran S.p.A. - Headquarter

Via Sebina, 74

25050 – Provaglio d'Iseo (BS)

Phone +39 030 9888 1 Fax +39 030 983 90 63

info@gefran.com

Fausta Coffano – Investor relator

Gefran S.p.A

Phone +39 030 9888 1 Fax +39 030 983 90 63 fausta.coffano@gefran.com

Visit us at: www.gefran.com

DISCLAIMER

This documentation has been prepared by Gefran S.p.A. for information purposes only and for use in presentations of Gefran S.p.A.'s results and strategies.

This presentation contains forward-looking statements regarding future events and future results of Gefran S.p.A, that are based on the current expectations, estimates, forecasts and projections about the industries in which Gefran S.p.A. operates, and on the beliefs and assumptions of the management of Gefran S.p.A..

Statements contained in this presentation, particularly regarding any possible or assumed future performance of Gefran S.p.A., are or may be forward-looking statements based on Gefran S.p.A.'s current expectations and projections about future events, and in this respect may involve some risks and uncertainties. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Gefran S.p.A. to control or estimate.

This presentation has to be accompanied by a verbal explanation. A simple reading of this presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding.

This presentation has been prepared solely for the use at the meeting with investors and analysts at the date shown. Under no circumstances may this presentation be deemed to be an offer to sell, a solicitation to buy or a solicitation of an offer to buy securities of any kind in any jurisdiction where such an offer, solicitation or sale should follow any registration, qualification, notice, disclosure or application under the securities laws and regulations of any such jurisdiction.

The Executive in charge of financial reporting of Gefran S.p.A., Fausta Coffano, declares, pursuant to paragraph 2 of art. 154-bis of the Consolidated Law on Finance, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.