Interpump Group — Investor Presentation 2018

May 10, 2018

Interpump Group 2018 First Quarter Results May 2018

Table of Contents

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Disclaimer

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 forwardlooking 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.

€ mn
------	--

	Q1 2017	Q1 2018	y/y
Organic growth in sales FX contribution Increase in perimeter			+12.4% -6.1% +8.2%
TOTAL SALES	272.7	312.3	+14.5%
EBITDA	62.8	69.6	+10.7%
EBITDA / SALES	23.0%	22.3%
NET INCOME (as reported) Tax rate NET INCOME (adjusted*) Tax rate	32.5 34.4%	51.6 24.0% 38.8 29.6%	+58.5% +19.4%
* Q118 Statutory net income includes a €12.7mn one-off resulting	from negative goodwill	in the acquisition	of GS-Hydro
NET DEBT	305.9	256.3	- 49.6 mn
COMMITMENTS FOR PURCHASE OF SUBSIDIARIES	50.8	55.8	+ 4.9 mn
TREASURY SHARES (as at 31/03)	2,227,252	1,409,683

	€ mn
--	------	--

	FY 2016	FY 2017	y/y
Organic growth in sales FX contribution Increase in perimeter			+9.3% -0.7% +9.1%
TOTAL SALES	922.8	1,086.5	+17.7%
EBITDA	198.5	248.6	+25.3%
EBITDA / SALES	21.5%	22.9%
NET INCOME (as reported) Tax rate NET INCOME (adjusted*) Tax rate	94.5 36.4%	135.7 29.4% 129.8 32.4%	+43.7% +37.4%
* 2017 Statutory net income includes €5.7mn one-off positive effect	of reassessment	of U.S. deferred tax assets	& liabilities
NET DEBT	257.3	273.5	+16.3 mn
COMMITMENTS FOR PURCHASE OF SUBSIDIARIES	42.8	50.3	+7.5 mn
TREASURY SHARES (as at 31/12)	2,281,752	1,561,752

€ mn

WATER-JETTING	Q1 2018	y/y	FY 2017	y/y
Organic growth in sales FX contribution Increase in perimeter		+8.4% -7.5% +7.2%		+3.0% -1.0% +19.4%
TOTAL REPORTED SALES	105.6	+8.1%	395.6	+21.4%
EBITDA	27.5	+7.2%	104.1	+25.3%
EBITDA / SALES	26.0%		26.2%
HYDRAULICS	Q1 2018	y/y	FY 2017	y/y
Organic growth in sales FX contribution Increase in perimeter		+14.7% -5.4% +8.8%		+12.8% -0.6% +3.6%
TOTAL REPORTED SALES	206.7	+18.1%	690.9	+15.8%
EBITDA	42.1	+13.2%	144.6	+25.2%

Sales & EBITDA Trend

€ mn - net of Cleaning (dismissed in 2005) and Electric Motors(2011)

Sales & EBITDA net of Cleaning (dismissed in 2005) and Electric Motors (2011) for consistency with current business

Financial Ratios

Prudent debt policy and satisfactory return on capital employed

Net Debt / EBITDA (12 M)

Net of treasury stock and including commitmentsfor purchase of investments

Return On Capital Employed (12M)

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

Who we are

INTERPUMP GROUP

• Public company (~75% free float)
• Listed at the Milan Stock Exchange since 1996 (ticker: IP.MI)
• Among the largest market caps in the STAR segment
• Stock is eligible for PIRs (government-sponsored saving investment plans for Italian households with significant tax advantages)

WATER-JETTING HYDRAULICS

• World leader in the niche market of highpressure plunger piston 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: entered the wider universe of fluid handling with the acquisition of Inoxpa and Mariotti&Pecini (2017)

• 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%.

We sell our products all over the world, either through our increasing direct presence, or through distributors.

Most goods sold are produced locally or at least in the same currency. Our FX impact is mostly relative to the translation of financial statements. No currency hedging is necessary.

Stainless steel, aluminum, brass, cast iron, copper, and countless other alloys. Smart, forwardlooking buying policy keeps us safe from price volatility.

All classes of customers are serviced directly, through a local subsidiary, or through a distributor according to their size and importance: from the world's largest OEMs to small retail customers. 8

Competitive Scenario

Niche of Very High Pressure Plunger Pumps (estimated market size: <1bn/yr)

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

9

Competitive Scenario

HYDRAULICS

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

Main Companies, Brands and Products

March 2018 – Total employees: 1,740

WATER JETTING

Main Companies, Brands and Products

March 2018 – Total employees: 4,726

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.

Rubber	hoses
I.M.M. Hypress Interpump Hose
Metallic	flexible hoses
Tubiflex (80%)
Rigid pipes	& piping systems
GS-Hydro Tekno Tubi
Hose assembly machines	24/7 service & repairs
Endeavour	Bristol Hose

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, Sweden, Denmark, Austria, Poland, Spain, Netherlands, USA, China, Korea, Singapore, Brazil

Application examples WATER

FOOD, COSMETICS, PHARMACEUTICAL

Pumps, valves, processing and cleaning systems Agitators (including magnetic trasmission) High-pressure homogenizers Water-jet food cutting, slicing, meat separation

CONSTRUCTION Hydro-demolition Surface preparation Renewal of armored concrete infrastructures

TRUCKS Lightweight high pressure pumps for sewer trucks Other utility vehicles

INDUSTRY Machine drilling & cutting Pulp & paper Intertwining of fibers in non-vowen textiles production Overspray removal from painting booth grids

STEEL / ALUMINUM Descaling of steel bars Cleaning of tanks & vessels used in aluminum processing

CLEANING

Mid- to high-power professional & industrial cleaning Car washing systems Airport tarmacs Fish-farming nets

MARINE / SHIPYARDS Water-blasting paint removal Hull cleaning Fuel pumps for methanol-converted marine engines

Deburring of common-rail engine heads Cutting of bodywork and other materials

WATER PROCESSING Misting Reverse-osmosis desalination

CONTRACTORS

AUTOMOTIVE

Cleanup of welded seals

Service companies who buy or rent general-purpose highpressure systems and offer various industrial cleaning and maintenance services to third parties across different industries (typical of the U.S. market)

OIL & GAS

Injection of anti-icing and pressure-restoring fluids in wells Underwater high-pressure pumping Emergency valve operation (seal-less pumps) Decommissioning of platforms at end of life

~1/3 of revenues in Water-Jetting come from after-sales (maintenance, parts & service)

Application examples HYDRAULICS

EARTH-MOVING Excavators and mini-excavators Backhoe loaders Skid-steer loaders

TRUCK OUTFITTERS Tipping trucks Trash collection - Sewer cleaning Firefighting - Snow plowing Towing - Car Carriers Crane trucks

TRUCK MANUFACTURERS Factory-fitted PTOs

AGRICULTURE Farm tractors Front loaders Harvesting machines

CONSTRUCTION Concrete mixing Telescopic handlers Conditioning/refrigeration/ventilation

INDUSTRIAL Machine tools Hydraulic power packs

LIFTING Mobile and fixed cranes Elevators Forklifts Theme park attractions

DRILLING / TUNNELING Tunnel-boring machines

Diversification by sales channel and application field

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

Diversification is a never-ending journey

Significant reduction of cyclicality and correlation achieved over the past decade

International Profile: Interpump in the World

International Profile

Geographical breakdown of sales and costs (2017)

International Profile

Focus on emerging markets: a well-balanced presence

Presence through Walvoil, Interpump Hydraulics, GS-Hydro, Inoxpa, Hammelmann

A very lively market for Water-Jetting

Hydraulics: Ready to support the nextgeneration motorization Presence through Interpump Hydraulics, Walvoil, Inoxpa

Leader in hydraulics: 3 Production Units to serve important OEM customers (JCB, Tata, Ashok Leyland). Production of Inoxpa food processing components in Pune

In both countries: merger & capacity enlargement of former Walvoil and Hydrocontrol branches completed in Q4 2017

Presence through Walvoil and GS-Hydro

Fast-growing market for hydraulics with many large local OEMs

GS-Hydro branch serving shipyards in the Busan region

Hammelmann, GS-Hydro

2016-2017 sales pattern suggests signs of recovery

40+ 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

WATER JETTING

Applications: from cleaning to countless

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

Acquisition & Diversification Timeline

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

HYDRAULICS

2018 Acquisitions: GS-Hydro

• a world leader in design and execution of piping systems in the industrial, marine, and offshore sectors
• revolutionized the piping industry with the invention of "non-welded" pipe assembly technology (cleaner and faster execution, easier maintenance and repairs)

Estimates for 2017 (€ mn)
SALES	60
EBITDA	4
NET CASH	3
EMPLOYEES	475
Total acquisition price: € 9 mn

• Acquisition in early 2018 of 13 international subsidiaries plus the manufacturing unit of the (bankrupt) Finnish head company
• Intellectual property and certification (where applicable) included in acquisition
• Ensuring continuity and growth of the business according to sound industrial criteria ²³

as of 31 March 2018

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		Paolo Mastrostefano	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 09/05/2018

Interpump Stock Performance

Total return to shareholders since the IPO: 14.5% per year (assuming dividend reinvestment and participation to the '09 capital increase)

Share price	27.86
Market Capitalization	€ 3.0 bn
Performance 3 M:	+2%
Performance 1 Y:	+11%
Performance 2 Y:	+130%
Average daily Volume (30 days)	208K shares /day

Analyst Coverage

Alantra	Jacopo Tagliaferri
Banca Akros	Paola Saglietti
Equita SIM	Domenico Ghilotti
Exane BNP Paribas	Michele Baldelli
Fidentiis	Xhois Hatibi
Intermonte	Carlo Maritano
Intesa Sanpaolo	Bruno Permutti
Kepler Cheuvreux	Matteo Bonizzoni
Mediobanca	Alessandro Tortora

Synthesis of results

Euro/million	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
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	1086.6
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	248.6
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%	22.9%
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	198.9
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%	18.3%
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	135.7
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%	12.5%
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	93.6
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	304.3
(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	764.7
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	0.40

Continuing operations only: Dismissed sectors are not included in the year of dismissal (2005 for Cleaning; 2011 for Electric Motors)

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

Free Cash Flow (12 Months)
(euro/million)	2009	2010	2011	2012	2013	2014	2015	2016	2017
Cash Flow from Operations	25.2	54.6	60.8	65.6	65.3	95.8	120.2	138.0	172.4
Change in Trade Working Capital	44.4	10.1	(21.8)	(12.3)	(1.7)	(23.7)	(6.6)	(12.2)	(30.8)
Capex	(9.2)	(8.7)	(11.8)	(15.8)	(29.8)	(34.1)	(28.9)	(36.5)	(47.8)
Other	2.7	1.0	3.7	3.6	0.5	0.3	0.5	0.7	(0.3)
Free Cash Flow	63.1	57.0	30.9	38.6	34.3	38.3	85.2	89.9	93.6

Purchases as a % of sales (yearly figures)

Procurement costs are well under control and do not reflect increases in raw material prices Long-term decrease of purchases on sales reflects increases in efficiency and acquisition of less material-intensive businesses ²⁷

The Manager in charge of preparing the company's financial reports 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, May 10, 2018

Carlo Banci

Cover page:

Valves for a sustainable motion and power control - The Directional Control Valve (DCV) is the core component of any complex hydraulic system: it converts the operator's commands into the right pressure at the right time in every segment of the hydraulic circuit to ensure smooth and simple operation.

Walvoil's DPX100, pictured here, is used in mini-excavators and other mobile applications.