Prima Industrie — Investor Presentation 2017

Jan 25, 2017

I N V E S T O R D A Y I N F R A N K F U R T

J A N U A R Y 2 5 T H , 2 0 1 7

K E M P I N S K I H O T E L F R A N K F U R T

SHAPING THE FUTURE

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
• About 12,000 machines installed in more than 80 countries
• Over 1,600 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.
• 2015 sales were at €365 millions, of which more than 85% outside Italy
• Strong commitment to innovation (R&D is 6.5% 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

Sales & service footprint

*= according to analysts consensus

Economic trends

Net financial position trend

2016			2017		2018			2019
	B. IMI	B. Akros	Consensus	B. IMI	B. Akros	Consensus	B. IMI		B. Akros Consensus	B. IMI		B. Akros Consensus
tp	19,0	18,7		19,0	18,7		19,0	18,7		19,0	18,7
REVENUES	400,0	395	397,5	435	428	431,5	470	454	462,0	500	479	489,5
EBITDA	38	36	37,0	45,7	43,2	44,5	53,1	51,1	52,1	60	56,6	58,3
EBIT	23,59	20,7	22,1	30,2	28,3	29,3	37,1	36,6	36,9	44	42,3	43,2
NET RESULT	10,6	9,9	10,3	13,9	14,6	14,3	18,1	20,1	19,1	22,2	23,9	23,1
NFP	-101,1	-103	-102,1	-92,7	-95	-93,9	-80,2	-87	-83,6	-64,5	n/a	-64,5

CAGR 2016-2019 consensus: 7.2%

Machine revenues by application

Revenues by technology

Always at the cutting edge of technology

A selection from our 2,000 customers ww

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

New Convergent CF laser

CHINA INVESTMENT 4.3 M€ NEW HQTC IN TORINO 8.5 ^M€ TOTAL INVESTMENT 12.8 ^M€

Prima Power Suzhou new facility

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

Market trends: laser systems market – by Optech Consulting (January 2014 – update expected Jan. 2016))

Global market and forecast for high power laser systems

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

The geographic diversification

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

New HQTC: process development & training

Competence Center on Laser Based Manufacturing

Industry 4.0 European machine tool builder

Inaugurated in May 2016

• Training and awareness on Industry 4.0. Prima Power academy.
• Live demo on new technologies and best practices for Industry 4.0

• Industry 4.0 Advisory Center for SMEs

• Accelerator of new innovative projects

• Support and integration on new Industry 4.0 technologies (sensors and IT)

40 years of laser and mechatronics know-how.

• Leaders in photonics technology, considered as a key emerging technology at EU level.
• Participation to EU Additive Manufacturing projects, leading the Borealis project.

Financial statements as at Sep. 30, 2016: Balance sheet Current tax receivables 4.543.075 7.029.222 Derivatives 55.415 47.225

CONSOLIDATED BALANCE SHEET

30/09/2016	31/12/2015	Assets held for sale Values in Euro TOTAL ASSETS	284.000 30/09/2016 446.225.636	284.000 31/12/2015 435.425.009
34.578.130	28.465.557	Property, plant and equipment Capital stock	34.578.130 26.208.185	28.465.557 26.208.185
156.804.302	157.770.974	Intangible assets Legal reserve	156.804.302 4.565.082	157.770.974 4.494.745
1.163.429	1.223.555	Investments accounted for using the equity method Other reserves	1.163.429 70.959.273	1.223.555 72.243.694
121.358	121.358	Other investments Currency translation reserve	121.358 4.475.919	121.358 5.965.409
35.000	35.000	Non current financial assets Retained earnings	35.000 19.396.357	35.000 14.786.376
11.350.721	9.845.765	Deferred tax assets Net result	11.350.721 5.584.130	9.845.765 6.016.715
-	19.703	Stockholders' equity of the Group	131.188.946	19.703 129.715.124
204.052.940	197.481.912	Minority interest	1.174.375	197.481.912 1.196.407
108.252.017	93.992.707	STOCKHOLDERS' EQUITY	132.363.321	93.992.707 130.911.531
90.571.054	86.413.895	Interest-bearing loans and borrowings	117.203.531	86.413.895 117.805.350
9.343.981	8.019.131	Employee benefit liabilities	7.677.490	8.019.131 7.912.782 7.029.222
4.543.075	7.029.222	Deferred tax liabilities	9.788.031	10.518.305 47.225
55.415	47.225	Provisions	146.655	150.551 791.509
		Derivatives	276.351	414.635 41.365.408
		NON CURRENT LIABILITIES	135.092.058	136.801.623 237.659.097
		Trade payables	74.125.444	78.323.460 284.000
		Advance payments TOTAL ASSETS	26.922.178 446.225.636	21.385.159 435.425.009
		Other payables Capital stock	20.412.032 26.208.185	19.218.309 26.208.185
		Interest-bearing loans and borrowings Legal reserve	33.950.994 4.565.082	25.700.281 4.494.745
		Current tax payables Other reserves	5.464.266 70.959.273	7.257.725 72.243.694
		Provisions Currency translation reserve	17.895.343 4.475.919	15.796.491 5.965.409
	791.509 28.331.645 241.888.696 284.000 446.225.636 26.208.185 4.565.082 70.959.273	791.509 41.365.408 237.659.097 284.000 435.425.009 26.208.185 4.494.745 72.243.694	Other non current assets NON CURRENT ASSETS Inventories Trade receivables Other receivables Current tax receivables Derivatives Financial assets Cash and cash equivalents CURRENT ASSETS Assets held for sale	- 204.052.940 108.252.017 90.571.054 9.343.981 4.543.075 55.415 791.509 28.331.645 241.888.696 284.000

Derivatives - 30.430 CURRENT LIABILITIES 178.770.257 167.711.855 TOTAL STOCKHOLDERS' EQUITY AND LIABILITIES 446.225.636 435.425.009

Retained earnings 19.396.357 14.786.376 Net result 5.584.130 6.016.715 Stockholders' equity of the Group 131.188.946 129.715.124

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

CONSOLIDATED INCOME STATEMENT

Values in Euro	30/09/2016	30/09/2015
Net revenues	274.536.038	260.095.199
Other income	2.284.415	3.610.171
Change in inventories of finished goods and WIP	15.236.266	11.072.340
Increases in fixed assets for internal work	7.925.552	8.777.872
Use of raw materials, consumables, supplies and goods	(139.054.772)	(124.472.642)
Personnel cost	(75.011.295)	(74.194.678)
Depreciation	(11.578.280)	(9.900.439)
Impairment - Write-off	(127.409)	-
Other operating expenses	(61.894.688)	(63.171.664)
OPERATING PROFIT	12.315.827	11.816.159
Financial income	650.989	718.889
Financial expenses	(5.382.625)	(7.421.334)
Net exchange differences	(693.602)	(918.509)
Net result of investments accounted for using the equity method	332.287	(105.000)
Net result of other investments	-	5.700
RESULT BEFORE TAXES	7.222.876	4.095.905
Taxes	(1.598.279)	(1.874.234)
NET RESULT	5.624.597	2.221.671
- Attributable to Group shareholders	5.584.130	2.621.614
- Attributable to minority shareholders	40.467	(399.943)
RESULT PER SHARE - BASIC (in euro)	0,53	0,25
RESULT PER SHARE - DILUTED (in euro)	0,53	0,25

Prima Group business sectors: Prima Additive