Piovan — Investor Presentation 2018

Mar 20, 2019

Piovan Key People With You Today

Nicola Piovan Chairman

• Joined Piovan in the 1990s
• 25y+ of experience in the industry
• Led Piovan transition from a local family business to a niche global player

Filippo Zuppichin Chief Executive Officer

• Joined Piovan in 2006
• ~25y of experience
• ~12y in the industry
• Previous experiences at Italtel-HP JV, Electrolux and Carrier

Luca Sabadin Chief Financial Officer

• Joined Piovan in 2017
• 25y+ of experience
• Formerly CFO at SAVE and PittaRosso

The Leading Automation Solutions Provider for Plastic & Food Markets

Source: Company information

¹In 2018. ²In 2018. ³Average 2018 figure. ⁴ Defined as Adjusted EBITDA – Recurring Capex / Adjusted EBITDA. ⁵ 2018 figure. Computed as EBIT / Net Invested Capital excluding Goodwill and Put and Call Options. ⁶ Excluding other sales & other income.

Our Core is Process Automation from Silos to Primary Machines…

…Expanding into New Areas of Application…

…Exploiting Strong Technological Synergies…

Developed For Plastics, Piovan Technological Platforms Can Have Multiple Applications

…Resulting in a Diversified Range of End-Markets Served

¹ Does not include spare parts, other sales & other income

Reporting system integrated in 2014 Reporting system integrated in 2010 Reporting system integrated in 2008 Proven Track Record of Integrating Successful Acquisitions… Acquired in 2008 Acquired in 2010 Acquired in 2014 Enter the US market Acquisition of EU competitor with material handling solutions Enter the food segment

• Connected to in 2010
• CRM-Sales integrated in 2015
• CRM-Service integrated in 2016

Source: Company information

8

Connected to in 2017

Connected to in 2015 CRM-Sales integrated in 2016 CRM-Service integrated in 2017

…Resulting in Long-Term Growth, Both Organic and Through M&A

Compelling Investment Case

Clear Growth Strategy Based on Both Organic and M&A Expansion

Global Leader in Plastic Processing Auxiliary Equipment… 1

Best Positioned To Catch Growth Market Opportunities

Source: Meticulous Research, Company information ¹As reported by Ellen Macarthur Foundation. ²Outside Piovan scope.

¹ …With a Growing Presence in Attractive Food Market

An Environmentally-Friendly Company Riding the Green Revolution 2

Increasing Sustainability Is A Key Trend… …And Piovan Is Ready For The Change

+79% PLASTIC WASTE RECYCLING 2016 VS. 2006¹

>300 PLASTIC RECYCLING SYSTEMS INSTALLED SINCE 2005

~390KTONS BIOPLASTICS PRODUCTION CAPACITY

BY 2022²

SEVERAL BIO-RESINS SYSTEMS INSTALLED COMPATIBLE WITH BIO-PLASTICS E.G. PLA AND MATER-BI

ENERGY SAVING AS A KEY PRIORITY FOR PLASTIC PROCESSORS

35%-45% POWER SAVINGS

ADOPTING PIOVAN GENESYS AND MODULA DRYER TOGHETHER WITH WINENERGY SOFTWARE

Source: Company information ¹Related to EU28 excluding Switzerland; as reported by PlasticsEurope. ²As reported by European Bioplastics (from 2,054ktons/year in 2017 to 2,440 ktons/year in 2022)

Automating The Whole Process From Silos To Primary Machines

…Resulting in Turn-key Solutions for Complex Customer Needs 3

Full Integration

Complete turn-key solutions

Engineered Customization

65% of Revenues generated by supply of customised solutions¹

Digital Manufacturing Set-Up for 4.0 Smart Factory

• Easy communication between various entities (Piovan / OEMs)
• Full mapping of plant efficiency status
• Customisable setup for specific end-markets

Integrated Solutions Enabling High Customer Retention (c. 80% of Revenues from Retained Customers² )

Source: Company information

¹In 2017 ²Revenues generated by customers who already have been customers once in the previous five years (excluding spare parts purchase)

Energy Saving

Reducing energy costs (relevant for plastic processors)

Reliability

Critical to prevent costly production jams

⁴ Truly Global Presence with Local Service Network

Worldwide Reach Ensuring Prompt After-Sales Assistance And Fostering Long-Term Relationships With Customers

Source: Company information as of Dec-17

17 Legend: Manufacturing Site Service & Sale company

Well-Preserved Relationships Thanks To Deep Understanding of Customer Needs and Best-In-Class Service Level

Source: Company information ¹ Excluding other sales & other income. ² Based on top-100 customer group

Track Record of Profitable Growth and Cash Generation 6

Delivering Best-In-Class Returns, With ROCE Of Approx. 76%⁴

Source: Company information as of Dec-18

¹Computed on Revenues excluding gains for disposal of PPE . ²Defined as Adj. EBITDA – Recurring Capex. ³Defined as Adj. EBITDA – Recurring Capex as % of Adj. EBITDA. ⁴ 2018 figure. Computed as EBIT / Net Invested Capital excluding Goodwill and Put and Call Options.

Clear Growth Strategy Based on Both Organic and M&A Expansion

Source: Company information

2018 Results

PIOVAN 2018 KEY BUSINESS HIGHLIGHTS

Further Consolidation of Our Global Leadership in Plastic with High Single-Digit Growth (+8% YoY)

Strong Results in Food (+€19m YoY) Supported by Ongoing Expansion of International Salesforce

Strategy to Enlarge End-Markets Served in Plastic Driving Great Momentum in Asia

Continued Footprint Expansion with New Branch Opened in Morocco & Ongoing Screening for Additional Openings by YE

Completed US Facilities Relocation, Expansion of the Italian Site Ongoing as Planned

Disposal of US Plant and Non-Core Assets Completed, Fully Financing Extraordinary Capex Needs

Acquisition of a Further Stake in Penta, Now Owned at 90%

Successfully Completed Listing on Italian Stock Exchange

KEY FINANCIAL HIGHLIGHTS

FY18

Source: Company Information

¹Includes other revenue and income. YoY growth excludes capital gains on asset disposals (€1.9m in 2018).²Adj. EBITDA - Recurring Capex. ³ Computed as Cash Generation as % of Adj. EBITDA. ⁴ Computed as EBIT / Net Invested Capital excluding Goodwill and Put and Call Options.

Strong Top-Line Acceleration Driven by Food and Asia

Comments

BY APPLICATION

• Strong increase in Revenues from Systems across both markets:
• Plastic: further consolidation of the leadership position, with strong growth in EMEA and Asia
• Food: strong acceleration, executing our strategy to gain market share
• Service: flattish top line as a result of
  • Lower activity in North America due to the production shift to the new facility (now concluded)
  • Food spare parts and service additional business not yet visible in the performance

BY GEOGRAPHY

• Strong momentum in:
• EMEA, reflecting mainly acceleration in Food (alongside with strong double digit performance in plastics)
• Asia, as a result of recent organizational changes and broadening of the end-markets served
• Slowdown in in North America partially impacted by relocation to new plant (now completed) impacting profitability in ramp-up phase
• South America performance affected by adverse FX movements

Profitable Growth Path Continuing in Line with Expectations…

• Plastic vs. Food mix effect driving Contribution Margin down (structurally lower in Food due to higher incidence of raw materials)
• Dilution of Contribution Margin more than offset by structurally lower fixed costs in Food, resulting in overall margins expansion (~20bps at Adj. EBITDA level, ~40bps at Adj. EBIT level)
• Increased Net Income despite negative effect of IPO / other oneoff costs (c. €5.4m)

Source: Company Information

¹Adjusted for extraordinary capital gains on asset disposals (€1.9m in 2018) and IPO / other one-off costs (c. €5.4m); margin calculated on Revenues net of extraordinary capital gains on assets disposals

² Computed on Revenues excluding capital gains on asset disposal (€1.9m in 2018)

…Driven by Strong Operating Leverage

Source: Company Information ¹Excluding IPO / other one-off costs (c. €5.4m)

²Excluding extraordinary capital gain on asset disposal (€1.9m in 2018)

Adjusted EBITDA Bridge from FY-17 to FY-18

Net Debt Walk from Dec-17 to Dec-18

Net Cash/ (Debt) Dec-17 Adj. EBITDA Recurring Capex Change in contract assets / (liabilities) Change in tax receivables / (payables) / VAT Other change in WC Taxes Other Net Cash/ (Debt) Dec-18 pre extraordinary Net cash impact of IPO / other one-off costs Non Recurring Capex Disposal Dividends paid Penta minority acquisition Net Cash/ (Debt) Dec-18

Income Statement

€m	2017	2018	Δ% 18 vs. 17
Sales	209.4	241.7	15.4 %
Other sales & other income	3.9	6.2	59.2 %
o/w capital gain on asset disposal	-	1.9	n.m.
Revenues 1	213.3	247.8	1 16.2 %
Raw materials	(82.2)	(97.5)	18.6 %
Cost of services	(40.6)	(53.3)	31.3 %
o/w extraordinary IPO costs	-	(5.4)	n.m.
Personnel	(52.9)	(57.1)	7.9 %
Other costs	(4.6)	(5.0)	8.0 %
EBITDA	33.0	35.017	6.2 %
Capital gain on asset disposal	-	(1.9)	n.m.
Extraordinary / IPO costs	-	5.4	n.m.
Adjusted EBITDA	33.0	38.5	16.7 %
% Adjusted Margin	15.5%	15.7%
D&A and provisions	(3.5)	(3.7)	5.4 %
EBIT	29.5	31.3	6.3 %
Finance Income / (Expenses)	(0.3)	(0.2)	(40.1)%
Exchange income (expenses)	(2.1)	0.2	(111.2)%
Income from equity method investments	-	(0.1)	n.m.
Income / loss from change in fair value	2.1	2.3	n.m.
EBT	29.1	33.5	15.0 %
Taxes	(8.9)	(8.0)	(10.2)%
% Tax Rate	30.5%	23.8%
Net Income	20.2	25.5	26.1 %
Attributable to Piovan shareholders	19.6	23.9	22.1 %
Attributable to minority shareholders	0.7	1.6	141.9 %

Balance Sheet

€m	Dec-17	Dec-18
Property Plant & Equipment	27.9	34.5
Intangible Assets (incl. Goodwill)	5.7	6.0
Financial Assets	0.6	0.3
Net Fixed Assets	34.2	40.8
Trade receivable	61.4	50.7
Inventory	23.0	28.0
Trade payables	(34.5)	(39.9)
Advanced payments from customers	(14.1)	(12.6)
Contract assets/(liabilities)	(8.5)	1.0
Net Trade Capital	27.4	27.1
Tax receivables	1.6	3.5
Other current activities	3.5	4.2
Tax payables	(7.4)	(6.4)
Other current liabilities	(11.0)	(12.2)
NWC	14.0	16.1
Other Credits	4.0	5.0
Other Debts	(4.3)	(6.6)
Pension Fund	(3.9)	(3.9)
Net Invested Capital before Option	44.1	51.5
Put & Call Option	(9.7)	(3.2)
Net Invested Capital	34.4	48.3
Total Shareholders' Equity	36.7	56.8
Net Debt / (Cash)	(2.3)	(8.5)
Total Sources	34.4	48.3

Cash Flow Statement

€m	2017	2018
Adj. EBITDA	33.0	33.0 38.5
Recurring Capex	(1.8)	(1.8) (2.7)
% on Revenues	0.8%	0.8% 1.1%
Cash generation	31.2	31.2 35.8
Cash Conversion %	94.6%	94.6% 93.0%
Non-Recurring Capex	(6.2)	(6.2) (9.9)
Disposal	1.1	1.1 5.2
∆ Net Working Capital	3.2	3.2 (2.1)
Corporate Taxes	(8.9)	(8.9) (8.0)
∆ Funds	(0.2)	(0.2) (0.0)
Non operating Items	0.6	0.6 (0.6)
Cash Flow from Operation	20.8	20.8 20.4
Net Cash Impact of Extraordinary / IPO costs	-	- (4.5)
∆ Put and Call Option	0.0	(0.0) (4.2)
Dividend distribution	(12.2)	(12.2) (6.0)
Changes in equity	(2.0)	(2.0) 0.6
Other financial charges	(0.3)	(0.3) (0.2)
∆ Exchange loss/gain	(2.1)	(2.1) 0.2
Income from equtiy method investments	-	- (0.1)
∆ Net Financial Position	4.1	4.1 6.2
NFP BoP	1.8	1.8 (2.3)
∆ Net Financial Position	(4.1)	(4.1) (6.2)
NFP EoP	(2.3)	(2.3) (8.5)