Prima Industrie — Investor Presentation 2016

Sep 15, 2016

LUNCH WITH INVESTORS

15 SEPTEMBER 2016

Prima Group at a glance

• • Founded in 1977, Prima Industrie is ^a global leader in high technology laser andsh t eemet l a processing sys tems andelt i ectronic componen tsfor industrial applications
• • Ab t ou12,000 machines i t ll d ins allein more than80 count ir es
• •Over 1,600 employees worldwide
• •Manufacturing sites in Italy, Finland, USA and China
• • B d roa di t reccommerci l a andafter-sales presence in EU, NAFTA, BRIC and other emerging markets markets.
• • 2015 sales were at€ 365 millions, ^o fwhi hch more than 85 % out ids e It l a y
• •Strong commitment to innovation (R&D is 6.5% of turnover)
• • Listed on ItalianStock Exchange (STAR segment) since 1999

Prima Group business sectors: Prima Power

LASER MACHINES

SHEET METALMACHINERY

Prima Group business sectors: Prima Electro

ELECTRONICS

LASER SOURCES

Industrial footprint

A history of growth y g

Order intake last 12 months

New HQTC operational

Economic trends

Net financial position trend

Analysts' consensus

		2 0 1 6			2 0 1 7			2 0 8 1			2 0 9 1
	B. I M I	kr B. A os	Co ns en su s	B. I M I	kr B. A os	Co ns en su s	B. I M I	kr B. A os	Co ns en su s	B. I M I	kr B. A os	Co ns en su s
tp	1 9, 0	1 6, 4		1 9, 0	1 6, 4		1 9, 0	1 6, 4		1 9, 0	1 6, 4
R R E E V V E E N N U U E E S S	0 0, 0 4	3 9 5	3 9 7, 5	3 4 5	2 2 8 8 4 4	3 3 4 4 1, 1, 5 5	0 0 4 4 7 7	4 4 5 5 4 4	2, 2, 0 0 4 4 6 6	0 0 5	9 9 4 4 7 7	8 9, 4 5
E B I T D A	3 8	3 6	3 7, 0	4 5, 7	4 3, 2	4 4, 5	5 3, 1	5 1, 1	5 2, 1	6 0	5 6, 6	5 8, 3
E B I T	2 3, 5 9	2 0, 7	2 2, 1	3 0, 2	2 8, 3	2 9, 3	3 7, 1	3 6, 6	3 6, 9	4 4	4 2, 3	4 3, 2
S N E T R E U L T	1 0, 6	9, 9	1 0, 3	1 3, 9	1 4, 6	1 4, 3	1 8, 1	2 0, 1	1 9, 1	2 2, 2	2 3, 9	2 3, 1
N F P	-1 1 0 0 1, 1, 1 1	-1 1 0 0 3 3	-1 1 0 0 2, 2, 1 1	-9 9 2, 2, 7 7	-9 9 5 5	-9 9 3, 3, 9 9	-8 8 0, 0, 2 2	-8 8 7 7	-8 8 3, 3, 6 6	-6 6 4, 4, 5 5	/a n	-6 6 4, 4, 5 5

CAGR 2016-201 consensus: 7.2%

Investments & initiatives

INVESTMENTS RELATING TO THE PERIOD 2014-2018

• CHINA SUZHOU PLANT & NEW SALES/SERVICE ORGANIZATION IN CHINA•NEW HQTC (headquarters + tech centre) • FIBER LASER•DIODE FAB FOR FIBER LASER

COMPETITIVENESS

Investments & initiatives

CHINA INVESTMENT4.3 M€NEW HQTC IN TORINO 8 5. 5 M€TOTAL INVESTMENT12 8. 8M€

Investments & initiatives

A selection from our 2,000 customers ww

Revenues by technology

Laser & Sheet metal processing market

Market size 2015* : approx. 8.2 bn€

* = market size includes also different products not fitting current Prima's product range such as plasma, water jet, tube cutting and bending applications, other machine tools. Source = Market public figures, company available info and company estimates.

Market trends: machine tool market by Oxford Economics (update Spring 2016)

–

Market trends: laser systems market –by Optech Consulting (last available January 2014)

Global market and forecast for high power laser systems

G l o	b l k ( € / t a m a r e m	C A G R ( % )
2 0 3 1	2 0 6 1	2 0 2 0	2 0 3- 2 0 6 1 1	2 0 6- 2 0 2 0 1
3, 7 0 7	4, 6 8 2	6, 2 8 2	8. 1	7. 6

The geographic diversification

60%48%44%50%43% 42%40%200824%18%25%20%22%24%18% 20%30% ²⁰¹³ 201530/06/2016 15%13%15% 15% 14%10%0%ITA EMEA AMERICAS APAC

Revenues by geographic area

"Economic turbulence does not hit the same market at the same time: our strength is the global presence, allowed by a competitive range of products ".

Prima Power strategy for the Chinese machine tool market

New commercial strategy in China

R&D: Always at the cutting edge of technology

Laser Genius Combi GeniusBce Smart

R&D represents 6.5% of turnover

Laserdyne 606D Laser Next eP ²⁰⁴⁰

R&D: 2019 and beyond

• 40 years of laser and mechatronics know-how.
• Leaders in photonics technology technology, considered as a key enabling technology at EU level.
• Participation to EU Additive Manufacturing projects, leading the Borealis

Financial statements as at Jun. 30, 2016: Balance sheet

Va lue s i n E ur o	/06 /20 30 16	/12 /20 31 15	Va lue in Eu s ro	/ / 3 0 0 6 2 0 1 6	/ / 3 1 1 2 2 0 1 5
Pro lan nd uip ert t a nt p y, p eq me	34 .65 4.5 19	28 .46 5.5 57	Ca ita l st k p oc	26 2 0 8. 1 8 5	26 2 0 8. 1 8 5
Int ibl ts an g e a sse	15 7.7 21 .12 1	15 7.7 70 .97 4	Le l re g a se rve	4. 5 6 5. 0 8 2	4.4 94 .74 5
Inv est nts nte d f usi the uit tho d me ac cou or ng eq y me	1.1 63 .42 9	1.2 23 .55 5	Ot he r r es erv es	7 0. 95 9. 27 3	7 2. 24 3. 6 94
Ot he r in stm ts ve en	12 1.3 58	12 1.3 58	Cu lat ion tr rre ncy an s re se rve	4. 7 94 0 0 1	5. 96 5. 4 0 9
t f t f i ina nci i l al N No ets t c n urr en ass	58 58 5 0 5.0 00 00	35 35 .00 00 0 0	R Re i ine d d e i ing t ta arn s	1 1 9 9. 3 3 96 96 3 3 5 5 7 7	14 14 .7 7 8 8 6 6. 3 3 76 76
De fer red ta ts x a sse	8.0 11 .11 35	9.8 45 .76 5	Ne lt t r es u	2. 9 2 8. 9 3 4	6. 0 16 .71 5
Ot he t a ts r n on cur ren sse	-	19 .70 3	Gr St k ho l de ' e ity f t he oc rs q u o ou p	1 2 8. 8 5 1. 8 3 2	1 2 9. 71 5. 1 24
NO N C UR RE NT AS SE TS	20 5.3 63 .46 2	19 7.4 81 .91 2	M ino ity int t r er es	1. 14 6. 6 16	1. 1 96 .4 0 7
Inv tor ies en	10 7.2 60 .54 9	93 .99 2.7 07	S S T T O O C C K K H H O O L L D D E E R R S S ' E Q U I T Y	2 9. 9 9 8. 8 1 44	3 91 3 1 0. 1. 5 1
Tra de cei ble re va s	82 .17 4.9 45	86 .41 3.8 95	Int st- be ing loa d bo ing ere ar ns an rro w s	11 9. 0 46 0 3 6	11 7. 8 0 5. 3 5 0
Ot he iva ble r r ece s	10 .06 6.7 04	8.0 19 .13 1	Em loy be f it l ia b i l it ies p ee ne	7. 77 2.5 3 5	7. 91 2.7 8 2
Cu cei ble nt tax rre re va s	7.0 29 .79 3	7.0 29 .22 2	fer d t l ia b i l it ies De re ax	1 0. 3 71 .77 7	1 0. 5 1 8. 3 0 5
De riv ati ve s	13 7.6 65	.22 47 5	Pro is ion v s	14 6. 6 5 5	15 0. 5 5 1
Fi Fin cia i l l as set t an s	24 24 1 5 1.5 09 09	79 79 1 5 1.5 09 09	De iva ive t r s	27 6. 5 7 8	41 4.6 3 5
Ca sh d c ash uiv ale nts an eq	40 .59 2.7 23	41 .36 5.4 08	O C S N N U R R E N T L I A B I L I T I E	1 3 7.6 1 3. 5 8 1	1 3 6. 8 0 1. 6 2 3
CU RR EN T A SS ET S	24 7.5 03 .88 8	23 7.6 59 .09 7	Tr de b les a p ay a	9 2. 3 3 7. 8 8 9	7 8. 3 2 3. 46 0
As set s h eld fo ale r s	28 4.0 00	28 4.0 00	A dv nts an ce p ay me	2 0. 3 8 5 5 6. 6	21 3 8 9 5. 15
TO SS S TA L A ET	45 3.1 51 .35 0	43 5.4 25 .00 9	Ot he b les r p ay a	2 2. 0 3 9. 8 0 9	1 9. 21 8. 3 0 9
			Int be ing loa d bo ing st- ere ar ns an rro w s	25 .7 91 .4 3 4	25 .7 0 0. 2 8 1
			Cu b les nt tax rre p ay a	9 3 3. 0 0 6. 6	25 25 7. 7.7
			Pro is ion v s	17 8 8 0. 2 21	15 .7 96 .4 91
			De iva ive t r s	-	3 0 4 3 0

CURRENT LIABILITIES 185.539.321 167.711.855TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 453.151.350 435.425.009

Financial statements as at Jun. 30, 2016: P & L

Va lue in Eu s ro	/ / 3 0 0 6 2 0 1 6	( *) / / 3 0 0 6 2 0 1 5
Ne t r ev en ue s	1 8 3. 2 9 0. 6 1 3	1 7 5. 9 3 9. 6 9 3
O he inc t r om e	1 1. 8 8 4 4 2 2. 4 4 7 7 6 6	2 2. 5 5 2 2 0 0. 9 9 4 4 3 3
C ha in inv ies f f in is he d g ds d W I P tor ng e en o oo an	1 4. 0 1 4. 3 6 3	1 4. 7 2 0. 2 5 4
Inc in f ixe d a for int l w k ts rea se s sse ern a or	6 8 4. 6 4 5. 5	6. 2 0 9. 3 6 3
Us f r ia ls, b les l ies d g ds ter e o aw m a co ns um a , s up p an oo	( ) 9 4. 3 7 7. 0 5 3	( ) 8 8. 8 5 2. 4 7 0
l co Pe t rso nn e s	( ) 5 1. 8 4 9. 8 4 6	( ) 5 1. 8 6 1. 6 2 3
De ia t ion p rec	( ) 7. 5 7 1. 3 7 6	( ) 6. 4 6 6. 2 0 0
Im irm t - Wr ite f f p a en -o	( ) 1 2 7. 4 4 3	-
O he ing t t r o p era ex p en se s	( ) 4 3. 8 2 3. 6 4 7	( ) 4 3. 9 9 0. 6 2 4
O P E R A T I N G P R O F I T	7. 0 8 2. 7 4 1	8. 2 1 9. 3 3 6
f w h ic h: ing ite o no n r ec ur r ms	( ) 9 5 7. 7 9 7	4 5 5. 3 7 1
F ina ia l inc nc om e	5 3 8. 3 1 6	2 6 2. 3 0 5
F ina ia l e nc xp en se s	( ) 3. 6 0 9. 9 6 4	( ) 5. 0 2 3. 0 8 0
Ne ha d i f fer t e xc ng e en ce s	( ) 5 4 2. 0 2 8	( ) 2 8 5. 1 3 7
Ne lt o f inv d for ing he ity ho d t r tm ts te t t es es en ac co un us eq m e u u	3 3 2. 2 8 7	( ) 1 0 5. 0 0 0
Ne lt o f o he inv t r t tm ts es r es en u	-	0 0 5. 7
R E S U L T B E F O R E T A X E S	3. 8 0 1. 3 5 2	3. 0 7 4. 1 2 4
f w h ic h: ing ite o no n r ec ur r ms	( ) 6 2 5. 5 1 0	( ) 1. 6 6 7. 2 5 6
Ta xe s	( ) 8 7 1. 1 4 6	( ) 1. 8 1 7. 0 1 4
N E T R E S U L T	2. 9 3 0. 2 0 6	1. 2 5 7. 1 1 0
At i bu b le Gr ha ho l de tr ta to ou p s re rs -	2. 9 2 8. 9 3 4	0 8 3 1. 5 5. 1
At i bu bu b b le le ino ity ha ho l l de de t tr t ta ta to ty m o r s s a e re o rs s -	1. 2 7 2	( ) ) 2 4 8. 8. 7 0 0 3 3
S S S C ( in ) R E U L T P E R H A R E - B A I eu ro	0, 2 8	0, 1 4
( ) R E S U L T P E R S H A R E - D I L U T E D in eu ro	0, 2 8	0, 1 4

(*) for a better comprehension, the 2015 figures related to non recurring items have been re-exposed compared to the figures published in the half year Financial Report 2015

Competitors' recent results

		h i t t s x m o n s a / / 3 0 0 6 2 0 1 6	h i t t s x m o n s a / / 3 0 0 6 2 0 1 5	h c a n g e
P I	/ l E U R O i m	1 1 8 8 3 3, 3 3	1 1 7 7 5 5, 9 9	4 4, 2 2 % %
i B t s r o n c y	/ l i C H F m	2 5 6, 8	2 6 5, 7	% 3, 3 ‐
A M A D A	/ l i Y e n m	3. 3 5 4 4	0 0 5 7. 5	6, 2 % ‐
		l h t t t w e v e m o n s a / / 3 0 6 1 6	l h t t t w e v e m o n s a / / 3 0 6 1 5
f T r u m p	/ b l E U R O i	2, 8	2, 7	3, 7 %

"Sales decreased in Europe and Americas but i d i A i "increase ncreased n sia"

"Double digit growth in Spain and France, but difficulties due to economic slowdown in China and Brazil and sanctions against Russia".

Shareholding structure