Prima Industrie — Investor Presentation 2018

Mar 6, 2018

1977-2017 : 40 SPARKLING YEARS

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 13,000 machines installed in more than 80 countries
• •1,781 employees worldwide (~50% in Italy)
• •Manufacturing sites in Italy, Finland, USA and China
• • Broad direct commercial and after-sales presence in EU, NAFTA, BRIC and otheremerging markets.
• • 2017 sales were €449.5 millions (+14%), of which 83.5% outside Italy.
• •Strong commitment to innovation (R&D is 5.2% of turnover)
• • Listedon Italian Stock Exchange (STAR segment) since 1999

Prima Group business sectors: Prima Power

LASER MACHINES

SHEET METALMACHINERY

Prima Group business sectors: Prima Electro

ELECTRONICS

LASER SOURCES

Our presence in the world

2015 - New Plant in Suzhou (China)

MARCH 2015 - OPENING CEREMONY WITH BOTH CHINESE AND ITALIAN AUTHORITIES

SUZHOU MANUFACTURING PLANT

2016 - New HQTC in Collegno (Italy)

2018 - New Plant in Seinäjoki (Finland)

RENDERING NEW PLANT

Shake-hands between Finnish Prime Minister(Juha Sipilä) and Gianfranco Carbonato

WORK-IN-PROGRESS

Sales & service footprint

OTHER 50+ COUNTRIES SERVED WITH AGENTS &DISTRIBUTORS

A history of growth

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

–

Market trends: laser systems market – by Optech Consulting

Global market and forecast for high power laser systems

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

• • Machine Tool market expected growth (Oxford Economics) – cagr 2016-2020: 2%
• • Laser market expected growth (Optech Consulting) – cagr 2016- 2020: 7.6%
• • Success of newly released products
• • Strengthening of market coverage in China & Asia

• • 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
• • New Additive Manufacturing Division

Economic trends

Net financial position trend

^{* =} according to Company's business plan

M/L term debt refinancing

d Fa i l i t ies lac c re p e					1 Q 1 8 Ne Fa i l i t ies w c
		Am t ou n			T im ing for			Am t ou n
Ty p e	Co ter ty un p ar	( ) M €	( ) ( ) Sp d % 1 4 rea	i Ma tur ty	im bu t re rse me n	Ty p e	Co ter ty un p ar	( ) M €	( ) ( ) Sp d % 2 4 rea	i Ma tur ty	S ta tus
						B O N D	I N S U R A N C E C O ' 2	2 5	( ) 3, 5 3	2 0 2 5	Ca he d s
B O N D	I N S U R A N C E C O ' 1	0 4	( ) 8 3 5, 7 5	2 0 2 2	Ma h 2 0 8 1 rc	T E R M L O A N	B A N K 1	0 1	1, 4 5	2 0 2 3	Ca he d s
	I T B A N K S
T E R M L O A N	C L U B D E A L	2 5	3, 0 0	2 0 2 0	Ma h 2 0 1 8 rc	T E R M L O A N	B A N K 2	2 5	1, 8 5	2 0 2 2	S ig d ne
	F I N N B A N K S
T E R M L O A N	C L U B D E A L	2 0	2, 5 0	2 0 2 0	De be 2 0 1 7 ce m r	T E R M L O A N	B A N K 3	2 0	1, 7 5	2 0 2 2	Ca he d s
T E R M L O A N S	S E V E R A L B A N K S	2 0	1, 7 0	2 0 1 8 / 1 9	2 0 1 8 / 2 0 1 9	T E R M L O A N	B A N K 4	2 0	1, 8 0	2 0 2 2	Ca he d s
						T E R M L O A N -					be To
						i l i for Ne Fa ty w c	B A N K 5	1 5	1, 2 5	2 0 2 3	ig d in s ne
						inv tm ts es en					h Ma rc
T	O T A L	1 0 5	3, 7 5	/ 2 0 1 8 2 2		T O	T A L	1 1 5	2, 0 7	/ 2 0 2 2 2 5

(1)= not including IRS

(2) = not including IRS and upfront fees

(3) = fixed rate

(4) = BPs over Euribor (Floor zero)

Quarterly order intake since 2011

26,7 37,7 46,4 0102030405060702015 2016 2017Revenues (M€) 32,8 36,7 650102030405060702015 2016 2017Orders (M€) (*): ITALY + EX-YUGO, NOT INCLUDING ELECTRONICS & AFTER SALES

FOCUS ON MACHINE BUSINESS – AREA ITALY (*)

STRONG GROWTH IN 2017 BOOSTED BY INDUSTRY 4.0 TAX INCENTIVES

3D CUTTING AREA AT CECOMP CUSTOMER (TURIN AREA)

Analysts' consensus

		2 0		2 0 1 9
	Me d io ba nc a	B. I M I	B. A kr os	Co ns en su s	Me d io ba nc a	B. I M I	B. A kr os	Co ns en su s	Co mp an y
	4 0, 0	4 0, 4	4 0, 0		4 0, 0	4 0, 4	4 0, 0		Bu ine P lan s ss
R E V E N U E S	4 7 8, 5	4 7 0	4 7 7	4 7 5, 2	5 0 3, 5	5 0 0	5 1 0, 5	5 0 4, 7	5 0 0
E B I T D A	5 2, 3	5 3, 1	5 7	5 4, 1	6 0, 2	6 0	6 5, 4	6 1, 9	6 0
E B I T	3 2 4,	3 7, 1	4 1	3 7, 4	2 4 1,	4 4	9, 9 4	4 5, 0	-
N E T R E S U L T	2 9	2 3, 8 6	2 7	2 6, 6	3 0, 4	2 9, 1	3 3, 9	3 1, 1	-
N F P	5 5	5 7	6	-5	-3 8	3 3	4	-3
	6, -	8, -	3 -	9, 4	3,	6, -	0, 4 -	6, 8	-

Released March 5, 2018

Released November 8, 2017

Machine revenues by application (2017)

Regional Highlights (2017)

Revenues by technology (2017)

Group Employees

Competitive & Comprehensive product range

Combi Genius Shear PunchBce SmartLaser NextLaser GeniusPSBB

State-of-the-art laser and electronic technologies

Focus on CF fiber laser family

Innovation

• ‣5÷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 & FACTORIES

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

SMART SOFTWARE REMOTE DIAGNOSTICS & MAINTENANCE

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

Metal Additive manufacturing systems

New Additive Manufacturing division

Metal Additive manufacturing main technologies

Direct energy deposition - LENS

Financial statements as at Dec. 31, 2017: Balance sheet

Va lue s in Eu ro	31 /12 /20 17	31 /12 /20 16
Pro ty, lan t a nd ipm ent per p equ	35. 627 .75 1	35. 281 .36 9
Int ible set ang as s	149 .60 3.4 79	155 .71 3.3 99
Inv d f usi the uit eth od est nts nte me ac cou or ng eq y m	-	1.0 09. 341
Oth inv est nts er me	355 .00 4	139 .05 1
Non nt fin ial ets cu rre anc ass	9.5 78	9.5 78
Def ed tax set err as s	11. 340 .43 2	11. 555 .32 4
NO N C UR REN T A SSE TS	19 6.9 36 .24 4	20 3.7 08 .06 2
Inv ent ori es	113 .03 5.3 28	98. 561 .16 5
Tra de eiv abl rec es	113 .64 9.2 34	88. 376 .74 8
Oth eiv abl er rec es	8.0 18. 722	25. 6.4 617
Cur iva ble t ta ren x r ece s	9.3 80. 123	5.0 53. 888
Der iva tiv es	57. 536	-
Fin ial ets anc ass	79 09 1.5	791 .50 9
Cas nd h a h e iva len ts cas qu	70. 520 .65 9	62. 679 .90 1
CU RR EN T A SSE TS	31 5.4 53 .11 1	26 1.8 88 .82 8
Ass he ld for le ets sa	1.1 11 .13 6	31 8.8 12
TO SSE TS TA L A	51 3.5 00 .49 1	46 5.9 15 .70 2

Ca ita l st ock p	26 .20 8.1 85	26. 208 .18 5
Leg al r ese rve	4.6 52. 958	4.5 65. 082
Oth er res erv es	69 .31 1.0 22	70. 738 .75 2
Cu nsl ati tra rre ncy on res erv e	1.3 60. 295	6.8 48. 598
Ret ain ed nin ear gs	27 .62 0.0 77	19. 276 .92 6
Net sul t re	18 5.3 92 .51	10. 102 .30 4
Sto ckh old uit f t he Gr ' eq ers y o oup	14 7.6 67 .92 9	13 7.7 39 .84 7
Min ori int ty st ere	1.2 85 .83 9	1.2 12 .06 5
ST OC KH OL DE RS ' EQ UIT Y	14 8.9 53 .76 8	13 8.9 51 .91 2
Int st- bea rin loa and bo win ere g ns rro gs	98 .39 6.0 76	111 .67 5.7 62
Em loy ben efi t li abi liti p ee es	7.6 93. 863	8.1 00. 353
Def ed lia bili tie tax err s	5.9 97. 482	8.3 40. 653
Pro vis ion s	2.1 19 17	162 .68 4
De riv ati ves	80 .44 5	220 .86 6
N C NO UR RE NT LI AB ILIT IES	11 2.3 39 .98 5	12 8.5 00 .31 8
Tra de abl pay es	11 0.4 65. 363	88. 448 .38 3
Ad nts van ce pay me	43 .62 0.2 16	26. 029 .17 0
Oth abl er pay es	24 .95 0.8 38	22. 076 .06 7
Int bea rin loa and bo win st- ere g ns rro gs	42 .52 4.7 11	34. 894 .44 4
Cu ble nt tax rre pa ya s	6.0 71. 926	7.6 95. 264
vis ion Pro s	24 .57 3.6 84	18. 424 .37 0
De riv ati ves	-	895 .77 4
CU RR EN T L IAB ILIT IES	25 2.2 06 .73 8	19 8.4 63 .47 2
TO TA L S TO CK HO LD ERS ' EQ UIT Y A ND LI AB ILIT IES	51 3.5 00 .49 1	46 5.9 15 .70 2

Financial statements as at Dec. 31, 2017: P & L

Va lue s i n E uro	/12 /20 31 17	/12 /20 31 16
Ne t r ev en ues	9.5 03 .24 44 4	39 3.8 85 .77 4
Co st of ds sol d g oo	( ) 340 .09 6.2 52	( ) 29 7.9 02 .74 6
GR OS S M AR GIN	10 9.4 06 .99 2	95 .98 3.0 28
Re rch d D elo nt ts sea an ev p me cos	( ) 12 .56 3.6 44	( ) 10 .93 2.9 64
Sa les d m ark eti an ng ex p en ses	( ) 29 .63 0.5 18	( ) 27 .90 3.4 49
Ge ral d a dm ini ati str ne an ve ex p en ses	( ) 24 .03 4.4 82	( ) 21 .73 7.6 48
( ) OP ER AT ING G RO SS MA RG IN EB ITD A	43 .17 8.3 48	35 .40 8.9 67
of wh ich ing it : n on rec urr em s	( ) 1.8 85 .08 6	( ) 72 5.3 13
Im air nt - W rite -of f p me	( ) 23 .29 9	( ) 1.0 27 .68 2
De iat ion p rec	( ) 16 .85 8.9 18	( ) 15 .85 3.6 84
( ) OP ER AT ING PR OF IT EB IT	26 .29 6.1 31	18 .52 7.6 01
of wh ich ing it : n on rec urr em s	( ) 1.9 08 .38 5	( ) 1.7 52 .99 5
Fin cia l in an com e	2.7 60 .00 0	62 6.8 31
Fin cia l ex an p en ses	( ) 6.7 86 .64 7	( ) 8.5 07 .19 4
xch e d iffe Ne t e an g ren ces	( ) 2.9 73 .47 8	( ) 34 9.4 09
Ne t r lt o f in stm ts nte d f usi the uit tho d esu ve en acc ou or ng eq y me	-	1.0 57 .20 7
( *) Ne lt o f o the r in t r stm ts esu ve en	2.5 55 .67 7	( ) 29 7.7
( ) RE SU LT BE FO RE TA XE S EB T	21 .85 1.6 83	11 .34 7.3 07
of wh ich ing it : n on rec urr em s	52 1.2 91	( ) 70 3.5 17
Ta xe s	( ) 3.1 83 .84 2	( ) 1.1 87 .18 4
NE T R ES UL T	18 .66 7.8 41	10 .16 0.1 23
ibu tab le Gr sha reh old - A ttr to ou p ers	18 .51 5.3 92	10 .10 2.3 04
- A ibu tab le mi rity sh ho lde ttr to no are rs	15 2.4 49	57 .81 9
( ) RE SU LT PE R S HA RE BA SIC in eu ro -	1, 77	96 0,
( ) RE SU LT PE R S HA RE DIL UT ED in eu ro -	1, 77	0, 96

Shareholding structure

OLYMPIC TORCHES MADE BY CUSTOMERS WITH PRIMA LASER MACHINES