Prima Industrie — Investor Presentation 2016

Mar 21, 2016

SHAPING THE FUTURE

STAR CONFERENCE

IINFO

DIGITAL
SIGN

MILAN, MARCH 16, 2016

IN PRIMA
IN INDUSTRIE

IN Prima

LASER & SHEET METAL MACHINERY

$\rightarrow$ ~40 YEARS ▶ 15+ LISTED $\rightarrow$ 364 $\epsilon$ M SALES ▶ 1600+ PEOPLE 8 PLANTS ▶ 8 R&D CENTERS ▶ 12000 INSTALLATIONS ▶ 80 COUNTRIES

IN Prima

LASER AND ELECTRONIC TECHNOLOGIES

OUR GROUP - KEY INDICATORS

VALUE IN EURO MILLION

to the shift from CO₂ laser sources to fiber laser sources

OUR GROUP IS

green means

GREEN MEANS COMBINES

ENERGY SAVING FOR THE CUSTOMER LOWER EMISSIONS FOR THE ENVIRONMENT

THE BENDING
TECHNOLOGY

64%

$CO₂$ emissions reduction with our servo-electric panel benders

Certified by University of Padua

Comparison is made with competitors' traditional hydraulic machines

THE PUNCHING

Energy saved by our

servo-electric punching

with ECOPUNCH^®

technology

$~13%$

Scrap material reduction with our punchshear technology

IR Prima

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.

K Prima

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

IN Prima

LASER AND SHEET METAL MACHINERY

THE PUNCH

Servo-electric turret punch presses

Press brakes, panel bending machines. bending centers

RRIMA
NDUSTRIE

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

THE SYSTEM

FMC & FMS to automate vour production flow

Integrated systems punch+shear and punch+laser

THE SOFTWARE

Smart solutions to connect your machines and maximize your productivity

ELECTRONICS AND LASER TECHNOLOGIES

PRODUCT PORTFOLIO

DOTS Embedded Electronics -Dedicated -off-the-shelf

CONVERGENT

Fiber and CO₂ Laser sources

OSAI Motion Control and CNC's

K PRIMA
INDUSTRIE

INDUSTRIE

K PRIMA

KEY CUSTOMERS

STAR CONFERENCE MILAN, MARCH 16, 2016 $12$

SHAREHOLDERS' STRUCTURE

THE RASHANIMA TRUST (by Erste International SA) ● YUNFENG GAO (by Sharp focus International Ltd)
● LAZARD FRERES GESTIONS MARKET MANAGEMENT

PROFIT & LOSS - FY 2015

PL - December 2015	31 dec. 2015		31 dec. 2014
VALUES IN €/000	PI GROUOP		PI GROUOP
Revenues	364.466		350,464
Materials	(163.596)		(157.607)
Direct labour costs	(39.484)		(37.257)
Other direct cost	(48.925)		(48.981)
DIRECT MARGIN	112.461	30,9%	106.619	30,4%
Indirect labour cost	(60.738)		(56.575)
Other indirect cost	(36.845)		(34.259)
Own Work Capitalized R&D	10.844		10.945
Own Work Capitalized other	907		557
Other income	4.773		6.491
EBITDA	31.402	8,6%	33.778	9,6%
Depreciation and impairment	(13.915)		(11.481)
EBIT	17.487	4,8%	22.297	6,4%
Net result of investments	(44)		(199)
Financial income	694		112
Financial expenses	(9.473)		(7.223)
Net Exchange difference	(532)		(147)
PROFIT BEFORE TAXES - EBT	8.131		14.840
Taxes	(2.526)		(5.452)
NET RESULT	5.605		9.388
Attributable to Group shareholders	6.017		9.763
Attributable to minority shareholders	(411)		(375)

IMPACT OF NON RECURRING ITEMS 2015 VS 2014

$\epsilon$ /thousand (except dividend)	31 dec. 2015	Adj*	% Adj on revenues	31 dec. 2014	Adj*	% Adj on revenues
Revenues	364.5			350.5
EBITDA	31.4	32.0	8,8%	33.8	31.8	9,1%
EBIT	17.5	18.5	5,1%	22.3	20.4	5,8%
EBT	8.1	11.6	3,2%	14.8	12.9	3,7%
Net result	6.0		1,7%	9.8		2,8%
Net financial position	$-101.7$			$-92.1$
Order backlog	117.7			94.5
Dividend per share	0.25			0.20

Adj*: excluding non-recurring items.

THE IMPACT OF NON RECURRING ITEMS IS HIGHER IN FY2015 COMPARED WITH FY2014 OF:

• ▶ €2.6 million on EBITDA
• ▶ €3.0 million on EBIT
• ▶ €5.4 million on EBT

REVENUES - LAST 9 QUARTERS

$\sim$

REVENUES BREAKDOWN BY TECHNOLOGY VALUE IN EURO MILLION

STAR CONFERENCE | MILAN, MARCH 16, 2016

$18$

MACHINE SALES BREAKDOWN BY INDUSTRY

HEADCOUNT - 31 DECEMBER 2015 VS 2014

	Prima Power		Rectro		PRIMA INDUSTRIE
Function	2015	2014	2015	2014	2015	2014
Production & Installation	485	464	128	125	613	589
Sales & Marketing	156	144	33	32	189	176
Service & Spare Parts	447	436	16	16	463	452
R&D and Product Management	176	167	62	60	238	227
General & Administrative	115	113	25	22	140	135
TOTAL	1.379	1.324	264	255	1.643	1.579

NET FINANCIAL RESULT - NORMALIZED - 31 DECEMBER 2015 VS 2014

VALUES IN €/000	2015	2014	VARIANCE
Finpolar loan - closing costs	(2.123)	٠	(2123)
Finpolar loan	(295)	(2.855)	2.560
Bond	(2.167)		(2.167)
Club Deal	(1.436)	٠	(1.436)
Finnish loan	(351)	۰	(351)
IRS derivates	(1)	(1.750)	1.749
CRS derivates	441	(168)	609
Financial lease liabilities	(191)	(188)	(3)
Write down of financial receivables	(236)		(236)
Interest on employee benefits	(136)	(240)	104
Others financial costs	(1.242)	(1.073)	(169)
Bank charges	(1.042)	(837)	(205)
Net financial expenses	(8.779)	(7.111)	(1.668)
Net financial expenses - normalized	(5.683)	(5,866)	183

NOT CONSIDERING IN THE NET FINANCIAL EXPENSES:

• ▶ Non Recurring Items (FP loan closing costs and write down of financial receivable)
• Costs not linked to the debt (interest on employee benefits and bank charges)
• ▶ Positive effect from derivative on currencies

STAR CONFERENCE | MILAN, MARCH 16, 2016

$21$

BALANCE SHEET - 31 DECEMBER 2015 VS 2014

VALUES IN €/000	2015	2014
PPE & Intangible assets	83.067	79.584
Goodwill	103.170	102.880
Investments and other non current assets	1.400	985
Deferred tax assets	9.846	9.957
FIXED ASSETS	197.483	193.406
Inventories	93.993	77.504
Trade receivables	86.414	85.664
Trade payables	(78.324)	(77.594)
Advance payments	(21.385)	(16.934)
OPERATING WORKING CAPITAL	80,698	68.640
Other current assets and liabilities	(11.199)	(12.983)
Current tax receivables/payables	(230)	(2.075)
Provisions and Retirement Benefit Oblig.	(23.860)	(23.653)
Deferred tax liabilities	(10.518)	(10.822)
Assets held for sale	284	284
NET INVESTED CAPITAL	232.658	212.797
NET INDEBTNESS	101.747	92.089
NET EQUITY	130.911	120.708
NET EQUITY - GROUP	129.715	119.558
EQUITY - THIRD PARTIES	1.196	1.150
SOURCES OF FINANCE	232.658	212.797

TRADE WORKING CAPITAL

IN PRIMA
INDUSTRIE

STAR CONFERENCE | MILAN, MARCH 16, 2016 $\boxed{23}$

CASH FLOW - 31 DECEMBER 2015

VALUE IN EURO MILLION

NET INDEBTNESS	(92.089)
Net result	5.605
Depreciation & Impairment	13.915
Change in trade working capital	(12.058)
Capitalization of development costs (net of decrease for R&D tax credit)	(10.338)
Net investments in fixed assets (tangible & intangible)	(5.760)
Change in current tax receivables/payables (included DTA/DTL)	(2.039)
Dividends Distribution	(2.097)
Other movements (included other changes in equity)	3.114
Net Indebtness	(101.747)

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 AND TTC IN TORINO
• ADDITIVE MANUFACTURING

CHINA SUZHOU PLANT & NEW SALES/SERVICE ORGANIZATION IN CHINA

STAR CONFERENCE | MILAN, MARCH 16, 2016

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STAR CONFERENCE | MILAN, MARCH 16, 2016

$|28|$

3KW, 4KW & 6KW FIBER LASER

TOTAL INVESTMENT $7.2$ ME

$31$

$32^°$