Interpump Group — Investor Presentation 2017

Aug 4, 2017

Presentation to Analysts and Investors

This document has been prepared by Interpump Group S.p.A for use during meetings with investors and financial analysts and is solely for information purposes. The information set out herein has not been verified by an independent audit company. Neither the Company nor any of its subsidiaries, affiliates, branches, representative offices (the "Group"), as well as any of their directors, officers, employees, advisers or agents (the "Group Representatives") accepts any responsibility for/or makes any representation or warranty, express or implied, as to the accuracy, timeliness or completeness of the information set out herein or any other related information regarding the Group, whether written, oral or in visual or electronic form, transmitted or made available.

This document may contain forward-looking statements about the Company and/or the Group based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. These forward-looking statements are subject to significant risks and uncertainties(many of which are outside the control of the Company and/or the Group) which could cause a material difference between forward-looking information and actual future results.

The information set out in this document is provided as of the date indicated herein. Except as required by applicable laws and regulations, the Company assumes no obligation to provide updates of any of the aforesaid forward-looking statements. Under no circumstances shall the Group and/or any of the Group Representatives be held liable (for negligence or otherwise) for any loss or damage howsoever arising from any use of this document or its contents or otherwise in connection with the document or the aforesaid forward-looking statements. This document does not constitute an offer to sell or a solicitation to buy or subscribe to Company shares and neither this entire document or a portion of it may constitute a recommendation to effect any transaction or to conclude any legal act of any kind whatsoever.

This document may not be reproduced or distributed, in whole or in part, by any person other than the Company. By viewing and/or accepting a copy of this document, you agree to be bound by the foregoing limitations.

Table of Contents

Presentation to Analysts and Investors

H1 2017 Highlights	3
FY 2016 Highlights	5
Who We Are	9
Geographic and Sector Diversification	17
M&A	22
Institutional Information	28
Appendix: History in Numbers	30

H1 2017 Highlights

€ mn

	H1 2016	H1 2017	Change
SALES	472.5	558.8	+18.3%
EBITDA	102.3	130.8	+27.8%
% on sales	21.7%	23.4%
NPAT	49.1	66.3	+34.9%
% on sales	10.4%	11.9%
NET DEBT (30/06)
Net Financial Position	309.8	319.1	+9.3 mn
Valuation of Put Options	30.9	57.9	+26.9 mn
TOTAL DEBT	340.7	377.0	+36.3 mn
TREASURY SHARES (30/06)
Number of shares	3,923,752	1,771,752

H1 2017 Highlights by Sector

€ mn

		SALES		EBITDA
	H1 2016	H1 2017	Change	H1 2016	% on sales	H1 2017	% on sales	Change
HYDRAULICS	302.2	355.8	+17.8%	59.5	19.7% 76.4		21.4%	+28.4%
WATER JETTING	170.3	202.9	+19.1%	42.9	25.1%	54.4	26.7%	+26.9%
TOTAL	472.5	558.8	+18.3%	102.3	21.7%	130.8	23.4%	+27.8%

€ mn

	FY 2015	FY 2016	Change
SALES	894.9	922.8	+3.1%
EBITDA	180.3	198.5	+10.1%
% on sales	20.1%	21.5%
NPAT (normalized*)	86.3*	94.5	+9.5%
% on sales	9.6%	10.2%
NET DEBT (31/12)
Net Financial Position	255.0	257.3	+2.3 mn
Valuation of Put Options	23.2	42.8	+19.6 mn
TOTAL DEBT	278.2	300.0	+21.8 mn
TREASURY SHARES (31/12)
Number of shares	1,125,912	2,281,752

* Statutory 2015 net income was € 118.3 mn due to a one-off financial income of € 32 mn arising from put options exercised earlier than expected

FY 2016 Highlights by Sector

€ mn

		SALES			EBITDA
	FY 2015	FY 2016	Change	FY 2015	% on sales	FY 2016	% on sales	Change
HYDRAULICS	560.3	596.8	+6.5%	96.6	17.2%		19.3%	+19.5%
WATER JETTING	334.7	326.0	-2.6%	83.7	24.9%	83.1	25.4%	-0.7%
TOTAL	895.0	922.8	+3.1%	180.3	20.1%	198.5	21.5%	+10.1%

Sales* in € mn

Acquired business (first 12 months' turnover of acquired companies) Organic business

Financial Ratios

Return On Capital Employed (12M)

Net Debt / EBITDA (12 M)

Net of treasury stock and including commitmentsfor purchase of investments

Operating profit / (consolidated shareholder's equity + net debt)

*without the Cleaning Sector

• World leader in the niche market of high-pressure plunger pumps for water and other fluids. Premium-price, reputable brands.
• Growing range of applications:
• •Industrial Cleaning
• •Chemical, Food, Pharma, Cosmetic processing
• •Automotive, Marine, Oil&Gas, Tunneling, Mining, Steel Industry

• Not only piston pumps: first steps in the wider universe of fluid handling following the acquisition of Inoxpa and Mariotti&Pecini

• Global supplier of hydraulic parts and complete systems.

• Co-design and direct sales to all major OEMs, plus an extensive network of distributors.
• Main applications are Trucks, Industrial Vehicles, Earth-moving, Agriculture, Construction, Lifting, Machine tools, Tunneling

Diversified across every dimension

Diversification of our business is the key to our resilience and low overall cyclicality

Both divisions have moved from the initial 100% concentration in one sector to a wide range of applications across different industries

Hydraulics: ongoing enlargement of product range through acquisitions. Water-Jetting: expansion from the historical niche of high-pressure pumps into the wider world of fluid handling.

Our 20 largest customers amount for about 10% of consolidated sales. No single customer above 1%

Competitive Scenario

Niche of Very High Pressure Plunger Pumps (estimated market size: € 0.7bn/yr)

Flow Handling Food, Cosmetics & Pharma (estimated market size: € 8 bn/yr)

11

Competitive Scenario

HYDRAULICS

A fast-growing global player in a huge market (est. € 40 bn/yr) with countless opportunities for acquisitions

Main Companies and Brands

June 2017 – Total employees: 1,721

Sales by application field

Total 2016 sales: € 326 million

WATER JETTING

Main Companies and Brands

June 2017 – Total employees: 4,086

INTERPUMP HYDRAULICS, Muncie Power Products, PZB, Hydrocar, Takarada

Cylinders

Panni Oleodinamica Contarini Penta, Modenflex

Oil Tanks

American Mobile Power

Distributor for Oceania

Mega Pacific (65%)

WALVOIL Hydrocontrol Galtech M.T.C.

International presence (plants and subsidiaries)

Italy, USA, UK, France, Bulgaria, Brazil, Chile, Peru, China, India, Australia, New Zealand, South Africa, UAE

Italy, USA, Canada, France, India, China, Korea, Australia Italy, France, Germany, Romania, UK, South Africa

Sales by application field

Total 2016 sales: € 597 million

Diversification by application field

Significant reduction of cyclicality and correlation achieved over the past decade

Diversification by sales channel and application field

2016 Total Turnover: Euro 923 Million Dealers not included Final & OEM's 67% Dealers 33% Truck 23% Cleaning 10% Contractors 12% Other Industries 7% Earth Moving 10% Agriculture 6% Construction 8% Lifting 6% Automotive 4% Drilling & Mining 2% Machine Tools 1% Oil & Gas 1% Food & Pharma… Shipyard/Marine… Other 6% Total sales by channel Sales by Application Field

Diversification of our business is the key to our resilience and low overall cyclicality

International Profile

Geographical breakdown of sales by sector

WATER JETTING HYDRAULICS

Total 2016 Turnover: Euro 326 Million Total 2016 Turnover: Euro 597 Million

International Profile

Geographical breakdown of sales and production (2016: € 923 mn)

International Profile

Focus on emerging markets: a well-balanced presence

25 companies acquired since the IPO in 1996 representing roughly 2/3 of each year's growth

3 kinds of acquisitions: Completing the product range, reinforcing competitive positioning, enhancing distribution

Bolt-on acquisitions: no disruption in activity, immediate synergies

Soft integration policy: existing management, brands, IT systems are preserved

Reasonable multiples paid, based on EV/EBITDA ratio

Remarkable increase in EBITDA margins of acquired companies

Frequent acquisition of a control stake with agreements for acquiring the minority interest in a few years

Use of Interpump treasury shares as full or partial payment for some acquisitions

Applications: from cleaning to countless

integrates Inoxpa's product line with Magna-Safe® magnetic transmission agitators

Products: from PTOs only to integrated hydraulic kits, systems and services

HYDRAULICS

2017 Acquisitions: Bristol Hose HYDRAULICS

Bristol Hose Ltd. is a supplier of goods and services in the hydraulic hoses and fittings market, headquartered in Bristol, UK.

They operate through 2 sales counters and 9 mobile workshops for on-site 24/7 repair services.

Main Figures	2016 (GBP mn)
SALES	2.25
EBITDA	13%
NET FINANCIAL POSITION	0.42

Total acquisition price, for 100%

GBP 550,000 (in cash)

Part of a micro-acquisition program, aimed at reinforcing direct presence in various markets, while increasing the service component which can now include on-site delivery and repairs

2017 Acquisitions: Inoxpa

Main Figures	2016 (€ mn)
SALES	59.4
EBITDA		11.5 19.3%
NET CASH	14.0
EMPLOYEES	676
Total acquisition price, for 100%

€ 90 million (in cash)

The second and largest step into these fast-growing and highly anti-cyclical markets, Inoxpa brings to Interpump's Water-Jetting sector:

• a major product diversification
• a new, additional growth driver: cross-selling
• further expansion of the international footprint

Inoxpa, headquartered near Girona (Spain), is a wellknown manufacturer of process equipment and flow handling systems for the food, cosmetics and pharmaceutical industries.

The group has a direct presence in 17 countries, with 3 major production centers (Spain, India, Portugal) and 6 engineering centers in Europe and India.

2017 Acquisitions: Mariotti & Pecini

Main Figures	2016 (€ mn)
SALES	8.1
EBITDA	2.7 33%
NET CASH	1.1
EMPLOYEES	14
Total acquisition price, for 60%

€ 8.9 mn € 5.3 million in cash, plus 150,000 IPG shares

The Italian specialist in industrial mixers and agitators

• Over 100,000 units manufactured
• Specialized models for every application
• Patented Magna-Safe® technology for magnetic transmission allows for complete segregation of the fluid being processed

as of 30 June 2017

Board of Directors	= independent			Operations Management Committee
	Fulvio Montipò		Chairman of the Board and Chief Executive Officer
	Paolo Marinsek	Deputy	Chairman of the Board
Franco Garilli	Lead Independent Director		Massimiliano Bizzarri	General Manager, High-pressure pumps & Flow Handling
Angelo Busani	Minority Director			General Manager,
Antonia Di Bella			Victor Gottardi	DCVs and Valves
Marcello Margotto			Pietro Iotti	General Manager, PTOs, Hydraulic Pumps & Cylinders
Stefania Petruccioli			Fabio Marasi	General Manager,
Paola Tagliavini				Hoses & Fittings
Giovanni Tamburi			Luca Mirabelli	Head of Investor Relations

Chief Financial Officer

Carlo Banci

Independent Auditors

EY S.p.A.

Updated 03/08/2017

Interpump Stock Performance

Total return to shareholders since the IPO: 14.6% per year (assuming dividend reinvestment and participation to the '09 capital increase)

25.42
€ 2.8 bn
+5%
+78%
+64%
286,720

1-yr trend: IP MI vs. FTSE STAR Index FTSE STAR Index

Analyst Coverage

Banca Aletti	Andrea Bonfà
Banca Akros	Paola Saglietti
Equita SIM	Domenico Ghilotti
Exane BNP Paribas	Michele Baldelli
Fidentiis	Xhois Hatibi
Intermonte	Jacopo Tagliaferri
Kepler Cheuvreux	Matteo Bonizzoni
Mediobanca	Alessandro Tortora

	Free Cash Flow 12 Months
(euro/million)	2009	2010	2011	2012	2013	2014	2015	2016
Cash Flow from Operations	25.2	54.6	60.8	65.6	65.3	95.8	120.2	138.6
Working Capital	44.4	10.1	(21.8)	(12.3)	(1.7)	(23.7)	(6.6)	(12.8)
Capex	(9.2)	(8.7)	(11.8)	(15.8)	(29.8)	(34.1)	(28.9)	(36.5)
Other	2.7	1.0	3.7	3.6	0.5	0.3	0.5	0.7
Free Cash Flow	63.1	57.0	30.9	38.6	34.3	38.3	85.2	89.9

Purchases as a % of sales (yearly figures)

IPG has an excellent track record in keeping procurement costs well under control. ³⁰

Synthesis of results (Twelve months*)

Euro/million	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005 a	2006 b	2007 c	2008 d	2009 e	2010	2011 f	2012	2013 g	2014	2015	2016
Net Sales	199.6	221.3	283.4	319.3	411.7	426.1	492.9	501.7	531.7	331.6	364.9	432.2	424.5	342.9	424.9	472.3	527.2	556.5	672.0	894.9	922.8
EBITDA	40.7	46.8	61.1	64.9	79.8	81.4	84.5	75.2	77.3	68.0	79.1	94.3	87.0	46.9	74.1	94.7	105.8	105.2	136,1	180.3	198.5
Margin	20.4%	21.2%	21.6%	20.3%	19.4%	19.1%	17.1%	15.0%	14.5%	20.5%	21.7%	21.8%	20.5%	13.7%	17.4%	20.0%	20.1%	18.9%	20.3%	20.1%	21.5%
EBIT	35.5	40.5	52.4	55.1	67.2	67.6	69.2	59.2	60.5	57.4	69.7	82.2	75.7	29.2	54.7	75.7	84.1	79.2	104.4	136.9	153.5
Margin	17.8%	18.3%	18.5%	17.2%	16.3%	15.9%	14.0%	11.8%	11.4%	17.3%	19.1%	19.0%	17.8%	8.5%	12.9%	16.0%	15.9%	14.3%	15.5%	15.3%	16.6%
Net Profit	7.6	13.8	16.6	22.2	19.0	21.4	21.1	14.3	19.7	27.1	41.6	42.9	40.2	14.0	27.4	42.6	53.2	44.1	57.7	118.3	94.5
Margin	3.8%	6.2%	5.9%	6.9%	4.6%	5.0%	4.3%	2.8%	3.7%	8.2%	11.4%	9.9%	9.5%	4.1%	6.4%	9.0%	10.1%	7.9%	8.6%	13.1%	10.2%
Free Cash flow	8.4	9.2	32.1	26.5	42.1	19.4	17.2	15.9	1.0	52.1	37.9	32.0	22.1	63.1	57.0	30.9	38.6	34.3	38.3	85.2	89.9
Net Fin. Debt	43.0	38.8	67.9	139.3	153.2	150.7	145.4	172.3	178.4	115.8	99.9	139.6	200.5	186.5	134.9	121.6	66.1	100.3	178.8	265.1	271.5
(net of treasury stock and including commitments for purchase of investments)
Shareholder's Equity	133.1	143.7	157.1	177.1	162.0	182.8	193.4	173.8	179.9	156.7	155.9	147.1	178.0	242.8	291.5	315.2	396.9	432.9	466.6	622.6	677.5
Debt/Equity	0.32	0.27	0.43	0.79	0.95	0.82	0.75	0.99	0.99	0.74	0.64	0.95	1.13	0.77	0.46	0.39	0.16	0.23	0.38	0.42	0.40

* From 2004 to 2015 figures are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared in accordance with Italian Accounting Standards

a) With Hammelmann 9 months, without Cleaning Sector.

b) With Hammelmann 12 months, without Cleaning Sector.

c) With NLB 11 months.

d) With Modenflex 5 months, Contarini 2 months, IKO 1 month.

e) With H.S. Penta 6 months.

f) Without Unielectric and with American Mobile Power 9 Months.

g) With Hydrocontrol Group 8 months.

The Manager in charge of preparing the company's financial reports, Carlo Banci, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.

S.Ilario d'Enza, August 4, 2017 The Manager in charge of preparing the company's financial reports Carlo Banci