Prima Industrie — Investor Presentation 2016

May 16, 2016

ROADSHOW – LONDON

M A Y 1 7 , 2016

SHAPING THE FUTURE

LASER & SHEET METAL MACHINERY

LASER AND ELECTRONIC TECHNOLOGIES

• ‣ ~40 YEARS
• ‣ 15+ LISTED
• ‣ 364 €M SALES
• ‣ 1600+ PEOPLE
• ‣ 8 PLANTS
• ‣ 8 R&D CENTERS
• ‣ 12000 INSTALLATIONS
• ‣ 80 COUNTRIES

2

DIALOGUE AND

SOLUTIONS SIMPLY INNOVATIVE

SMART TECHNOLOGY TO SIMPLIFY YOUR WORK

GREEN MEANS

SUSTAINABLE SOLUTIONS TO RAISE YOUR EFFICIENCY

GLOBAL/LOCAL

CLOSE TO YOU BUT WITH AN INTERNATIONAL STRENGTH

IT ALL STARTS WITH UNDERSTANDING YOUR NEEDS

‣ ENERGY SAVING FOR THE CUSTOMER ‣ LOWER EMISSIONS FOR THE ENVIRONMENT

GREEN MEANS COMBINES

64% 82% ~13%

CO² emissions reduction with our servo-electric panel benders

Energy saved by our servo-electric punching with ECOPUNCH® technology

Scrap material reduction with our punchshear technology

- 45% Yearly CO² emissions thanks to the shift from CO² laser sources to fiber laser sources 55,219 30,214

OUR GROUP IS

THE BENDING TECHNOLOGY -45%

THE PUNCHING

TECHNOLOGY

Certified by University of Padua

Comparison is made with competitors' traditional hydraulic machines

Prima Power is a global leader in laser and sheet metal machinery. Its product range covers every step of metalworking: punching, laser processing, bending, systems, automation and software .

Prima Electro is a Contract Electronics Manufacturing company that industrializes product ideas offering a turnkey service solution for a broad range of applications.

PRODUCT PORTFOLIO

DOTS Embedded Electronics – Dedicated –off-the-shelf

Fiber and CO² Laser sources

OSAI Motion Control and CNC's

LASER AND SHEET METAL MACHINERY ELECTRONICS AND LASER TECHNOLOGIES

THE PUNCH

Servo-electric turret punch presses

THE LASER

2D and 3D laser machines for cutting, welding and drilling

Integrated systems punch+shear and punch+laser

THE BEND

Press brakes, panel bending machines, bending centers

THE SYSTEM

FMC & FMS to automate your production flow

THE SOFTWARE

Smart solutions to connect your machines and maximize your productivity

8

9

SHAREHOLDERS' STRUCTURE

WHAT'S NEW IN 2016

WHOLE PRODUCT RANGE

• NEW HDTC: A WIDE SHOWROOM DISPLAYING THE • NEW PROPRIETARY FIBER LASER AVAILABLE • NEW SALES ORGANIZATION IN CHINA

• GROWING REVENUES AND IMPROVING PROFITABILITY THANKS TO THE GOOD PERFORMANCE OF ALL THE GEOGRAPHICAL AREAS AND, IN PARTICULAR, OF NORTH AMERICA (+ 37%) AND CHINA (+ 30%)
• •CONSOLIDATED REVENUES AT 79.4 M€ (+ 12.1% AGAINST
• •EBITDA AT 4.7 M (+57% AGAINST 3.0 M€)
• •GROUP NET RESULT AT -0.4 M€ (COMPARED TO -3.4 M€)
• •NET FINANCIAL POSITION AT -117.3 M€ (COMPARED TO - 101.7 M€ AT 31/12/2015 AND TO -112.9 M€ AT
• •ORDERS'BACKLOG AT 120.8 M€ (AGAINST 120.2 M€)

70.9 M€) 31/03/2015)

SALES 1Q16 vs 1Q15

15

Notes

• Sales benefited from high year end backlog

• Growth was recorded in all areas: •EMEA grew by 4%
• •AMERICAS grew by 32%
• •APAC grew by 20%

• Good results in Italy (15.3% of consolidated revenues), in Germany (9.8% of consolidated revenues), in Northern Europe (9.3% of consolidated revenues) and in Spain (7.6% of consolidated revenues).

• Signs of recovery are also recorded from Russia, whose turnover grows from 1,270 thousand euro at 31/03/2015 to 2,478 thousand euro at 31/03/2016, whilst the situation in Brazil remains negative.

• Prima Power division recorded strong sales vs 1Q15 (+24%)
• Prima Electro division is facing the new fiber laser technology shift

SALES BREAKDOWN BY AREA

SALES BREAKDOWN BY DIVISION

Revenues	31/03/16		31/03/15
	Euro thousand	%	Euro thousand	%
EMEA	47.023	59,2	45.311	63,9
AMERICAS	18.244	23,0	13.790	19,5
APAC	14.154	17,8	11.762	16,6
TOTAL	79.421	100,0	70.863	100,0
SALES BREAKDOWN BY DIVISION
Revenues	31/03/16		31/03/15

	31/03/16		31/03/15
	Euro thousand	%	Euro thousand	%
PRIMA POWER	73.169	92,1	59.080	83,4
PRIMA ELECTRO	9.600	12,1	16.055	22,7
Inter-sector revenues	(3.348)	(4,2)	(4.272)	(6,1)
TOTAL	79.421	100,0	70.863	100,0

PROFITABILITY 1Q16 VS 1Q15

16

Notes

•Group EBITDA increased by 57% to 4.7 M€ (vs 3.0 M€ in 1Q15)

•Profitability benefited from Prima Power higher volumes compared to 1Q15 (the latter was also affected by non recurring costs)

• Profitability is negatively impacted by the slow down of Prima Electro division whose EBITDA decreased from 2.7 M€ to almost zero.

Performance indicators	31/03/16		31/03/15
	Euro thousand	% on sales	Euro thousand	% on sales
EBITDA	4.702	5,9	3.002	4,2
EBIT	1.048	1,3	(97)	(0,1)
EBT	(821)	(1,0)	(3.280)	(4,6)
NET RESULT	(432)	(0,5)	(3.537)	(5,0)
NET RESULT ATTRIBUTABLE TO GROUP
SHAREHOLDERS	(359)	(0,5)	(3.442)	(4,9)

EBITDA BREAKDOWN BY DIVISION

EBITDA	31/03/16		31/03/15
	Euro thousand	%	Euro thousand	%
PRIMA POWER	4.830	102,7	357	11,9
PRIMA ELECTRO	6	0,1	2.657	88,5
Inter sector items and eliminations	(134)	(2,9)	(12)	(0,4)
TOTAL	4.702	100,0	3.002	100,0

NET FINANCIAL POSITION

VALUE IN EURO THOUSAND

NFP is affected by the seasonality of the business and also by the increase in working capital due to the additional demo machines displayed in the new showroom in Torino

PROFIT & LOSS – 31/03/2016

Values in Euro	31/03/2016	31/03/2015
Net revenues	79.420.511	70.863.117
Other income	893.030	594.124
Change in inventories of finished goods and WIP	17.351.599	9.349.390
Increases in fixed assets for internal work	2.739.539	3.234.594
Use of raw materials, consumables, supplies and goods	(49.700.740)	(35.232.354)
Personnel cost	(27.093.629)	(25.162.298)
Depreciation	(3.653.902)	(3.099.232)
Impairment	-	-
Other operating expenses	(18.908.379)	(20.644.146)
OPERATING PROFIT	1.048.029	(96.805)
Financial income	501.928	104.287
Financial expenses	(1.751.578)	(3.570.180)
Net exchange differences	(829.183)	382.328
Net result of investments accounted for using the equity method	209.324	(105.000)
Net result of other investments	-	5.700
RESULT BEFORE TAXES	(821.480)	(3.279.670)
Taxes	389.754	(257.699)
NET RESULT	(431.726)	(3.537.369)
- Attributable to Group shareholders	(359.397)	(3.441.744)
- Attributable to minority shareholders	(72.329)	(95.625)
RESULT PER SHARE - BASIC (in euro)	(0,03)	(0,33)
RESULT PER SHARE - DILUTED (in euro)	(0,03)	(0,33)

/03/2015
70.863.117
594.124
9.349.390
3.234.594
(35.232.354)
(25.162.298)
(3.099.232)
(20.644.146)
(96.805)
104.287
(3.570.180)
382.328
(105.000)
5.700
(3.279.670)
(257.699)
(3.537.369)
(3.441.744)
(95.625)
(0, 33)
(0, 33)

BALANCE SHEET – 31/03/2016

Values in Euro	31/03/2016	31/12/2015	Assets held for sale Values in Euro TOTAL ASSETS	284.000 31/03/2016 436.002.845	284.000 31/12/2015 435.425.009
Property, plant and equipment	28.037.697	28.465.557	Capital stock Property, plant and equipment	26.208.185 28.037.697	26.208.185 28.465.557
Intangible assets	157.572.014	157.770.974	Legal reserve Intangible assets	4.494.745 157.572.014	4.494.745 157.770.974
Investments accounted for using the equity method	1.186.455	1.223.555	Other reserves Investments accounted for using the equity method	72.243.694 1.186.455	72.243.694 1.223.555
Other investments	121.358	121.358	Currency translation reserve Other investments	3.994.794 121.358	5.965.409 121.358
Non current financial assets	35.000	35.000	Retained earnings Non current financial assets	20.803.091 35.000	14.786.376 35.000
Deferred tax assets	10.454.528	9.845.765	Net result Deferred tax assets	(359.397) 10.454.528	6.016.715 9.845.765
Other non current assets	-	19.703	Stockholders' equity of the Group Other non current assets	127.385.112 -	129.715.124 19.703
NON CURRENT ASSETS	197.407.052	197.481.912	Minority interest NON CURRENT ASSETS	1.078.187 197.407.052	1.196.407 197.481.912
Inventories	109.675.360	93.992.707	STOCKHOLDERS' EQUITY Inventories	128.463.299 109.675.360	130.911.531 93.992.707
Trade receivables	84.416.545	86.413.895	Interest-bearing loans and borrowings Trade receivables	118.458.012 84.416.545	117.805.350 86.413.895
Other receivables	9.699.495	8.019.131	Employee benefit liabilities Other receivables	7.933.905 9.699.495	7.912.782 8.019.131
Current tax receivables	6.753.730	7.029.222	Deferred tax liabilities Current tax receivables	10.358.028 6.753.730	10.518.305 7.029.222
Derivatives	432.112	47.225	Provisions Derivatives	146.655 432.112	150.551 47.225
Financial assets	791.509	791.509	Derivatives Financial assets	414.748 791.509	414.635 791.509
Cash and cash equivalents	26.543.042	41.365.408	NON CURRENT LIABILITIES Cash and cash equivalents	137.311.348 26.543.042	136.801.623 41.365.408
CURRENT ASSETS	238.311.793	237.659.097	Trade payables CURRENT ASSETS	76.863.441 238.311.793	78.323.460 237.659.097
Assets held for sale	284.000	284.000	Advance payments Assets held for sale	23.775.673 284.000	21.385.159 284.000
			Other payables	21.086.680	19.218.309
TOTAL ASSETS	436.002.845	435.425.009	TOTAL ASSETS Interest-bearing loans and borrowings	436.002.845 26.210.342	435.425.009 25.700.281
Capital stock	26.208.185	26.208.185	Capital stock Current tax payables	26.208.185 5.541.069	26.208.185 7.257.725
Legal reserve	4.494.745	4.494.745	Legal reserve Provisions	4.494.745 16.734.680	4.494.745 15.796.491
Other reserves	72.243.694	72.243.694	Other reserves Derivatives	72.243.694 16.313	72.243.694 30.430
Currency translation reserve Retained earnings	3.994.794 20.803.091	5.965.409 14.786.376	Currency translation reserve CURRENT LIABILITIES Retained earnings	3.994.794 170.228.198 20.803.091	5.965.409 167.711.855 14.786.376
Net result	(359.397)	6.016.715	TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES Net result	436.002.845 (359.397)	435.425.009 6.016.715

Financial assets 791.509 791.509

CASH FLOW - 31 MARCH 2016

VALUES IN EURO	31/03/2016	31/03/2015 (**)
Net result	(431.726)	(3.537.369)
Adjustments (sub-total)	(10.147.984)	(18.549.758)
Depreciation and impairment	3.653.902	3.099.232
Net change in deferred tax assets and liabilities	(769.040)	(851.266)
Change in employee benefits	21.123	(39.675)
Change in inventories	(15.682.653)	(23.115.254)
Change in trade receivables	1.997.350	1.079.607
Change in trade payables and advances	930.495	3.205.876
Net change in other receivables/payables and other assets/liabilities	(299.161)	(1.928.278)
Cash Flows from (used in) operating activities (A)	(10.579.710)	(22.087.127)
Cash flow from investments
Acquisition of tangible fixed assets (*)	(812.979)	(1.084.264)
Acquisition of intangible fixed assets	(352.811)	(206.008)
Capitalization of development costs	(2.697.798)	(2.968.966)
Net disposal of fixed assets (*)	47.464	4.595
Changes in capital of investments accounted for using the equity method	37.100	2.600
Net result of investments accounted for using the equity method	-	105.000
Cash Flows from (used in) investing activities (B)	(3.779.024)	(4.147.043)
Cash flow from financing activities
Change in other financial assets/liabilities and other minor items	232.437	(2.735.093)
Increases in loans and borrowings (including bank overdrafts)	2.412.232	99.390.885
Repayment of loans and borrowings (including bank overdrafts)	(1.077.218)	(91.728.474)
Change in currency translation reserve	(1.970.615)	5.208.770
Other variations	(14.577)	408.993
Cash Flows from (used in) financing activities (C)	(417.741)	10.545.081
Cash Flows from (used in) change of minority shareholders (D)	(45.891)	540.274
Net change in cash and equivalents (E=A+B+C+D)	(14.822.366)	(15.148.815)
Cash and equivalents beginning of period (F)	41.365.408	35.866.508
Cash and equivalents end of period (G=E+F) () included tangible fixed assets classified in the assets held for sale (*) for a better comparability, the 2015 figures have been reclassified	26.543.042	20.717.693

Olympic torch London 2012 Olympic torch Rio 2016

WE ARE INVESTING TO REACH NEXT UPPER LEVEL

INVESTMENTS RELATING TO THE PERIOD 2014 – 2018

• ‣ CHINA SUZHOU PLANT & NEW SALES/SERVICE ORGANIZATION IN CHINA
• ‣ NEW 2D & 3D LASER MACHINES
• ‣ FIBER LASER
• ‣ DIODE FAB FOR FIBER LASER COMPETITIVENESS
• ‣ NEW HQ TC IN TORINO
• ‣ ADDITIVE MANUFACTURING

SALES & SERVICE OF FULL PRODUCT LINE

CHINA SUZHOU PLANT & NEW SALES/SERVICE ORGANIZATION IN CHINA

TOTAL INVESTMENT 4.3M€

NEW 2D & 3D LASER MACHINES (PLATINO 2.0, LASER GENIUS, LASER NEXT)

LASER GENIUS PLATINO 2.0

LASER NEXT

24

5.2M€ TOTAL INVESTMENT

3KW, 4KW & 6KW FIBER LASER

7.2 M € TOTAL INVESTMENT

DIODE FAB FOR FIBER LASER COMPETITIVENESS

7.9 M € TOTAL INVESTMENT

NEW HQ & TTC IN TORINO

8.5M€ TOTAL INVESTMENT

ADDITIVE MANUFACTURING

2.6 M € TOTAL INVESTMENT

W W W . P R I M A I N D U S T R I E . C O M