Prima Industrie — Investor Presentation 2017

Nov 9, 2017

Prima Group at a glance

• Founded in 1977, Prima Industrie is a global leader in high technology laser and sheet metal processing systems and electronic components for industrial applications
• Over 12,000 machines installed in more than 80 countries
• ~1,700 employees worldwide
• Manufacturing sites in Italy, Finland, USA and China
• Broad direct commercial and after-sales presence in EU, NAFTA, BRIC and other emerging markets.
• 2016 sales were €394 millions, of which 84% outside Italy
• Strong commitment to innovation (R&D is ~6% of turnover)
• Listed on Italian Stock Exchange (STAR segment) since 1999

Prima Group business sectors: Prima Power

LASER MACHINES

SHEET METAL MACHINERY

Prima Group business sectors: Prima Electro

ELECTRONICS

LASER SOURCES

Industrial footprint: 1 plant=1 mission

Sales & service footprint

Direct presence in 25+ countries

• CANADA
• U.S.A.
• MEXICO
• BRAZIL
• CHILE
• ARGENTINA

• COLUMBIA

• ITALY

• FRANCE
• GERMANY
• UK
• SPAIN
• PORTUGAL
• SWITZERLAND
• AUSTRIA
• BELGIUM/ HOLLAND
• POLAND
• CZECH REP.

• HUNGARY

• RUSSIA

• LITHUANIA
• TURKEY
• U.A.E.
• FINLAND
• SWEDEN
• NORWAY
• DENMARK
• ISRAEL
• EGYPT

• S. AFRICA

• INDIA

• CHINA
• S. KOREA
• MALAYSIA
• AUSTRALIA
• NEW ZEALAND
• IRAN
• THAILAND
• VIETNAM
• INDONESIA
• JAPAN

subsidiaries or branch offices

Distributors/agents

Market trends: machine tool market – by Oxford Economics (update Spring 2017)

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

Global market and forecast for high power laser systems

	Global market (€/mio)	CAGR (%)
2013	2016		2013-2016	2016-2020
3,707	4,682	6,282	8.1	7.6

REVENUE DRIVERS

• Machine Tool market expected growth (Oxford Economics) – cagr 2016-2020: 3%
• Laser market expected growth (Optech Consulting) – cagr 2016- 2020: 7.6%
• Success of newly released products
• Strengthening of market coverage in China

• New HQTC (Headquarters &Tech Center) boosting order intake

• Higher volumes = Operational leverage

• Progressive increase in fiber laser in sourcing
• Diode Fab success in diodes development

Economic trends

* = according to Company's business plan

Net financial position trend

0,76

2008 2009 2010 2011 2012 2013 2014 2015 2016 2019*

0,61

0,00

0,50

Quarterly order intake since 2011

Last 13 months backlog

Analysts' consensus

	2017			2018			2019
	B. IMI		B. Akros Mediobanca	Consensus	B. IMI		B. Akros Mediobanca	Consensus	B. IMI		B. Akros Mediobanca	Consensus
	40,4	40,0	40,8		40,4	40,0	40,8		40,4	40,0	40,8
REVENUES	432,0	445	444,7	440,6	470	477	482,9	476,6	500	510,5	514,1	508,2
EBITDA	43,0	48,0	45,3	45,4	53,1	57	52,2	54,1	60	65,4	61,1	62,2
EBIT	27,5	31	28,5	29,0	37,1	41	34,3	37,5	44	49,9	42,1	45,3
NET RESULT	18,5	19	18,7	18,7	23,68	27	24	24,9	29,1	33,9	29,5	30,8
NFP	-76,8	-78	-76,3	-77,0	-58,7	-63	-66,3	-62,7	-36,3	-40,4	-42,6	-39,8

CAGR 2016 (A) -2019 consensus: ~ 9%

Machine revenues by application

Revenues by geography

Revenues by technology

Always at the cutting edge of technology

Always at the cutting edge of technology

A selection from our 2,000 customers ww

A selection from our 2,000 customers ww

• ‣ ~6% OF REVENUES INVESTED IN R&D
• ‣RANKED BY EU IN THE TOP 500 KNOWLEDGE-BASED COMPANIES IN THE CONTINENT
• ‣LONG HISTORY OF INNOVATION, 1ST LASER MACHINE FOR AUTOMOTIVE APPLICATION IN 1979
• ‣PIONEERS IN SERVO-ELECTRIC PUNCHING AND BENDING SYSTEMS- EFFICIENCY AND SUSTAINABILITY
• ‣ABOUT 15% OF GROUP STAFF EMPLOYED IN R&D
• ‣PRODUCT RANGE ALWAYS AT THE CUTTING EDGE OF TECHNOLOGY

Prima Power Solutions for Industry 4.0 and Smart Manufacturing

Ready for today's production needs… and for tomorrow

Intelligent machines and automated factories collecting real-time and historical data through sensors and cameras

Prima Power software comprehensive portfolio of modular software-based systems

INTELLIGENT MACHINES & FACTORIES SMART SOFTWARE REMOTE DIAGNOSTICS & MAINTENANCE

Data-driven machine diagnostics and predictive maintenance services. Production performance analysis, monitoring of machines status and condition.

Innovation

Competence Center on Laser Based Manufacturing

Industry 4.0 European machine tool builder

• Showroom with training rooms, conference rooms and hospitality area for customers
• Permanent expo of entire product range

• Built with green technologies: photovoltaic and solar panels, geothermal wells, home automation systems

• Training and awareness on Industry 4.0

• Live demo on new technologies and best practices for Industry 4.0
• Accelerator of new innovative projects

Financial statements as at Sep. 30, 2017: Balance sheet

Values in Euro	30/09/2017	31/12/2016
Property, plant and equipment	34.994.884	35.281.369
Intangible assets	151.091.012	155.713.399
Investments accounted for using the equity method	-	1.009.341
Other investments	359.551	139.051
Non current financial assets	9.578	9.578
Deferred tax assets	12.511.408	11.555.324
NON CURRENT ASSETS	198.966.433	203.708.062
Inventories	128.588.820	98.561.165
Trade receivables	98.674.948	88.376.748
Other receivables	8.401.335	6.425.617
Current tax receivables	7.262.408	5.053.888
Derivatives	376.843	-
Financial assets	791.509	791.509
Cash and cash equivalents	43.319.846	62.679.901
CURRENT ASSETS	287.415.708	261.888.828
Assets held for sale	1.152.107	318.812
TOTAL ASSETS	487.534.247	465.915.702
Capital stock	26.208.185	26.208.185
Legal reserve	4.652.958	4.565.082
Other reserves	69.292.933	70.738.752

Financial statements as at Sep. 30, 2017: P & L

Values in Euro	30/09/2017	30/09/2016
Net revenues	300.305.631	274.536.038
Cost of goods sold	(223.685.525)	(206.943.702)
GROSS MARGIN	76.620.105	67.592.336
Research and Development costs	(9.631.959)	(8.133.463)
Sales and marketing expenses	(20.373.590)	(19.239.112)
General and administrative expenses	(16.962.212)	(16.198.245)
OPERATING GROSS MARGIN (EBITDA)	29.652.345 -	24.021.516
Impairment - Write-off	(23.299)	(127.409)
Depreciation	(12.597.081)	(11.578.280)
OPERATING PROFIT (EBIT)	17.031.966 -	12.315.827
Financial income	2.674.159	650.989
Financial expenses	(4.976.185)	(5.382.625)
Net exchange differences	(2.484.646)	(693.602)
Net result of investments accounted for using the equity method	-	332.287
Net result of other investments	1.940.698	-
RESULT BEFORE TAXES (EBT)	14.185.991 -	7.222.876
Taxes	(2.055.365)	(1.598.279)
NET RESULT	12.130.626	5.624.597
- Attributable to Group shareholders	12.060.789	5.584.130
- Attributable to minority shareholders	69.838	40.467
RESULT PER SHARE - BASIC (in euro)	1,15	0,53
RESULT PER SHARE - DILUTED (in euro)	1,15	0,53

Shareholding structure

Source: latest dividend payment (May 2017)