Prima Industrie — Investor Presentation 2022

Jan 19, 2022

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14 4TH ITALIAN MID CAP CONFERENCE 19 -20 January 2022

ARE WE

WHO International Group with 8 manufacturing plants in 3 continents

AMERICAS of revenues 25%

EMEA of revenues 58%

Listed on Borsa Italiana (Euronext) since 1999

Focus on innovation

(5%+ yearly investment in R&D)

Direct presence in 30 countries

Large installed base in 80 countries and significant share (30%) of revenues from after-sale services

Commitment to ESG values ("green" machines, sustainable factories, diversity, gender equity, business ethics)

Company structured on 4 Business units

Machinery, Automation & Software Additive Manufacturing Solutions

Industrial Electronics Laser Sources

LASER MACHINES

SHEET METAL PROCESSING MACHINES & SYSTEMS

ADDITIVE MANUFACTURING

RANGE PRODUCT

LASER SOURCES SERVICES

RANGE PRODUCT

SOFTWARE

AUTOMATION AND STORAGE

ELECTRONICS

ARE WE

WHO A leader in laser and sheet-metal fabrication machines and systems

Strong know-how in mechatronics, opto-electronics, automation and software

MECHANICS & MACHINERY

ELECTRONICS, MEDICAL & OTHERS

CUSTOMERS SELECTION OF MAIN

ARE WE WHO

LASER - PUNCHING – Wujiang - Suzhou (CHINA)

LASERDYNE – Brooklyn Park - MN (USA)

5 years of investments for new efficient and sustainable plants

ARE WE WHO

100.000 m2 of plants and offices around the world

LASER – ELECTRONIC SYSTEMS Barone C.se – TO (ITALY)

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TOOL MACHINE MARKET WORLD

1992 FIRST GULF WAR

2020 COVID 19

Source: VDW and Oxford Economics.

"UP-PERIOD" of 7-8 years "DOWN-PERIOD" of 2-3 years

SECULAR GROWTH

WITH RELEVANT CYCLICALITY

2018

PI vs MACHINE TOOL MARKET

WHAT'S NEXT ?

However, the recovery has encountered headwinds from material and component shortages as well as transportation bottlenecks, with several sectors not able to increase production fast enough to accommodate the

We expect the easing in supply chain disruptions will be gradual, with capacity remaining tight and price pressures firm for the rest of this year. Rebuilding inventories and clearing backlogs will take time.

• Global industry has recovered strongly from the pandemic.
• strong rebound in demand.
• investment growth revised higher in 2021 and 2022.
• future growth as supply disruptions gradually ease.
• We forecast global MT consumption will rebound by 16.3% in 2021 and 11.1% in 2022.

	Anmual
GDP
Industrial Production
Manufacturing
Aerospace
Basic metals
Electrical/Electronic engineering
General purpose machinery
Metal products
Motor vehicles & parts
Other means of transport
Precision and optical instruments
Special purpose machinery
Utilities
Extraction
Construction

Many of the key MT (Machine Tool) purchasing industries performed relatively well during H1 2021, with output and

A number of countries have seen strong increases in MT imports as well as domestic orders, which will support

Europe, Asia and the Americas have all seen forecast upgrades. Despite the forecast upgrade, we remain cautious about the outlook. The spread of the Delta variant and persistent chip shortages are the key risks.

Global Industry
l percentage changes unless specified
% of GDP (2020)	2019	2020	2021	2022	2023	2024	2025
100	2.6	35	58	47	34	29	27
22.5	0.9	-4.5	73	47	4 0	33	29
174	22	-2.6	8.7	4 8	3.9	33	28
0-3	3.1	-19.5	10.1	8.9	7.6	5.8	43
1-1	4 6	-1.1	6.9	1.5	27	23	2.0
0-8	54	52	13.3	5.6	5.8	4 8	A A
0 9	1.2	-25	127	41	4.1	32	2 6
10	1.0	-4.6	10.8	4.0	28	2.1	15
12	-1.1	-122	10.3	8 7	35	25	1.8
0-3	5.6	-37	6.2	6.1	57	44	35
0-4	0.3	-5.1	10.4	55	3.7	32	28
20	12	-2.1	14.1	3 9	45	3.6	29
24	2.1	-0.3	4.1	4 0	74	23	2.1
2 6	12	-5.4	22	3.5	7 4	15	1.1
54	17	-4.6	6.9	54	42	3.4	29

EXTERNAL MARKET RESEARCH

Source: Cecimo/Oxford Economics – October 2021

EXTERNAL MARKET RESEARCH

Overview table % change
	2020	2021	2022	2023	2024	2075
Apparent consumption
World	-14.8	163		58	38	29
Americas	-18.1	23.8	16.0	62	22	13
Asia	-11.0	163	79	54	4 B	38
Europe	-202	10.9	153	0.5		23

Source: Cecimo/Oxford Economics – October 2021

EXTERNAL MARKET RESEARCH

Source: elaboration by UCIMU on data from Oxford Economics , ITC, Gardner, national associations

Worldwide machine tool consumption

•+75% new machines vs 2020 •+15% after sales vs 2020

ORDER ACQUISITION 2021 503 M€ +56% (vs 2020) +23% (vs 2019)

• +22% Y/Y

REVENUES 2021 (preliminary) 406 M€

•+ 72% Y/Y BACKLOG 1/1/22 215 M€

TRADING UPDATES

UPDATES & TRENDS

RESILIENCE PRIMA'S

Prima Industrie Group benefits from three factors of resilience

1 a strong geographical distribution worldwide

• 2 a high diversification of industries served, which are impacted by
  -
  -

different cyclicality and diversified macro trends

3 an important share of revenues coming from after sales activities (approx. 30%), which represent a stable source of sales linked to high number of machines installed

RECENT UPDATES & DIGITALIZATION

1 - CREATION OF THE "PRIMA@HOME" PLATFORM

communication beyond geographical borders and barriers.

• New digital channel Prima @ Home: projecting the Group's
• demand" streaming of numerous contents

• Prima @ Home is the new Prima Industrie streaming platform, designed to offer a complete range of services: from live formats such as events, demos, webinars, presentations and training courses, live video demonstrations of the Group's products, passing through the "on

2 - REMOTE CARE

• Prima Power offers customers a leading edge technology: Remote Care service. In case of unexpected alarms, thanks to Prima Power remote
• When customer's machine is stopped, with remote monitoring tools it is possible to speed up troubleshooting and make sure that your machine is

care, alarms can be diagnosed and fixed remotely. again up and running.

Augmented reality: innovative remote assistance

The customer's technicians, equipped with smartphones or tablets, can communicate remotely and share video images in real time with our

experts.

Mixed reality assistance: virtual view

Technological glasses which allow physical reality to interact with holograms. Thanks to proprietary applications loaded on these glasses, Prima Power applies the enormous potential of mixed reality to remote

assisted training and maintenance activities.

3 - DIGITALIZATION OF PROCESSES

In recent years, the Group has increased the digitization of its business processes, both internal and aimed at relations with customers and other

relevant stakeholders.

The 2020 pandemic has accelerated this process The digitalization involved all the main processes:

available to connect a high number of employees; Accounting dpt);

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• People: smartworking increased, making devices and instruments
• Sales processes: SalesForce, from marketing campaigns to management of the whole selling process (including Project mgt and
• After sales: Prima Service Tool, allowing real time intervention through accessing data necessary for the installation and maintenance of the machine, reducing unexpected stops.

Growing commitment to sustainability and ESG targets

Machines and plants increasingly environment friendly

Particular attention to human resources representing a fundamental asset for the future of the Group (smart working, diversity, training, talent retention)

400people 20,000 sqm area

Buildings with high environmental sustainability, equipped with photovoltaic panels, geothermal energy and home automation.

NEW MANUFACTURING PLANT 4 – ESG FACTORS

Total investment since 2016: 25 million euros.

5 - FINANCIAL SUSTAINABILITY

In an uncertain moment at the beginning of the pandemic, the Group negotiated

• No liquidity issues throughout the crisis
• additional credit lines (unsecured) as a precaution
• (Including Euro 35.7 million of IFRS 16 impact) in 2020.

Despite the additional credit lines obtained, the Group paid particular attention to the management of working capital and, consequently, reduced the net financial exposure by approximately Euro 11 million to Euro 96.3 million

AUTOMOTIVE MARKET TREND

"Now, two trends in vehicle sales and output are making lightweighting even more important: the sharp rise of SUV and light truck sales growth, and the quickening transition to electric vehicles. These shifts have made it even more important for manufacturers to use lightweight, highstrength materials, for example in reducing fuel consumption in larger vehicles. For electric vehicles, lithium-ion batteries and battery enclosures add significant weight to vehicles, with manufacturers looking to materials across exteriors and interiors to offset this weight." Automotive Manufacturing solutions 27/09/21

ADDITIONAL DOOR APPLICATIONS

Pioneer with the first ever application of this solution made by Plannja Hardtech, (later SSAB Hardtech and then Gestamp), for the Ford F150 pickup in the mid 90's.

The F150 had a small HSS B -pillar inserted in the additional door made in Lulea with our Rapido machine and shipped to Michigan for assembly.

Today … the «magic doors» of the «500 e 3+1» are made by Prima's 3D machines !

AUTOMOTIVE MARKET TREND: ONE EXAMPLE

• The pandemic hit hard on the civil aerospace: global air traffic has been brought to an almost complete standstill by the COVID -19 outbreak.

• While there have been other instances of significant drops in air traffic in the past, they have generally been regional. Never have we seen a sustained global collapse of air traffic as we're seeing now because of the travel restrictions necessitated by COVID -19.

• The market is expected to grow from \$298.0 billion in 2020 to \$430.9 billion in 2025 at a rate of 7.7%. The market is then expected to grow at a CAGR of 5.9% from 2025 to 2030.

• The growth is mainly due to the companies rearranging their operations and recovering from the COVID -19 impact, which had earlier led to restrictive containment measures

involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.

AEROSPACE MARKET TREND

AEROSPACE MARKET

• TREND Defense aerospace and space economy instead appear to be resilient to the crisis.
  • Satellite broadband will represent 50% of the projected growth of the global space economy by 2040,
  • Launching satellites that offer broadband Internet service will help to drive down the cost of data, just as demand for that data explodes (driven by autonomous cars, IoT, A.I., VR, video,..)

Urbanization remains a major demographic trend across much of the world, though urban centers have been reinvented by changes the pandemic brought in how people live and work in cities.

This future growth will provide a continuous and increasing request of public and private infrastructure

Building sub -segment impacted: ELEVATORS ESCALATOR STEEL DOOR PANELS HVAC

URBANIZATION TREND

HVAC SECTOR

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RESULTS & BUSINESS PLAN

30/09/2021 RESULTS REPORTED HIGHLIGHTS

Values in Euro thousand	30/09/21	30/09/20	Variations	%
ORDER INTAKE	345.339	220.379	124.960	56,7%
BACKLOG	187.891	127.771	60.120	47,1%
REVENUES	281.414	233.452	47.962	20,5%
EBITDA	20.891	14.896	5.995	40,2%
EBITDA %	7,4%	6,4%	1,0%	-
EBIT	6.205	(1.525)	7.730	-506,9%
EBIT %	2,2%	-0,7%	2,9%	-
NET RESULT	1.621	(4.385)	6.006	-137,0%
FCF	(8.129)	(13.984)	5.855	41,9%
NET FINANCIAL DEBT	(102.191)	(123.630)	21.439	17,3%
HEADCOUNT	1.757	1.761	(4)	-0,2%
( % calculated over the revenues, headcount expressed in units)

Values in Euro thousand	30/09/21	30/09/20	Variations	%
REVENUES AT COSTANT EXCHANGE RATES	287.185	233.452	53.733	23,0%
EBITDA Adj	24.041	18.127	5.914	32,6%
EBITDA Adj %	8,5%	7,8%	0,7%	-
EBIT Adj	9.682	1.706	7.976	467,5%
EBIT Adj %	3,4%	0,7%	2,7%	-

( % calculated over the revenues)

BUSINESS PLAN '21-'23 MAIN TARGETS

GROWTH IN REVENUES TO 500+ M€

IMPROVEMENT IN MARGINALITY WITH EBITDA 13%

POSITIVE NET FINANCIAL POSITION

(EXCLUDING IMPACT FROM IFRS16 AND EXTRAORDINARY OPERATIONS)

CUSTOMER SATISFACTION

Y T LI A U Q	E C VI R E S O T T C U D O R P M O R F	S E TI S E VI L TI A C S A R L E T A F C A O L G
PRODUCTS	COMMERCIAL STRATEGY	OPERATIONS

PROCESS DIGITALIZATION

NEW ORGANIZATION

500+ M€ REVENUES 13% EBITDA POSITIVE NET FINANCIAL POSITION

ENHANCEMENT OF PRESENCE IN APAC MARKET

Investments in south-east Asia, China and other APAC Countries to increase market share.

• New Global Organization ("thinkglobal.servelocal") oriented towards Customer Satisfaction.
• Growth through a more efficient employment of human resources and new digital technologies (Remote Troubleshooting, Augmented Reality, Predictive Maintenance).

EVOLUTION OF THE PRODUCT RANGE FURTHER GROWTH IN AFTER-SALE REVENUES

RECOVERY OF AUTOMOTIVE SECTOR • Recovery of investments from automotive sector starting from China. • Introduction of new models and safer / lighter vehicles. • Expected increased use of HSS materials. • EV are an opportunity and not a threat to 3D laser machines.

Through major investments in software and automation and introduction of a new family of "volume booster" products.

MAIN ACTIONS FOR TOP LINE IMPROVEMENT

Reduction of installation times and costs, also thanks to the use of new digital technologies Centralization of Procurement function

EFFICIENCIES IN INSTALLATION AND PROCUREMENT

Updating and integration of ERP and PLM systems, rollout of PST system for the After-Sale management

GREATER DIGITALIZATION OF BUSINESS PROCESSES

With the completion of the new factory in Collegno (Torino), after the actions already concluded in the recent years in Suzhou (China) Seinäjoki (Finland) and Minneapolis (USA)

RATIONALIZATION OF THE PRODUCTION FOOTPRINT

Launch of a new streaming platform called "Prima@Home" to create digital events and open houses and arrange virtual

demonstrations for customers without the need for them to move and travel to the Group's showrooms.

REDUCTION OF COSTS IN MARKETING EVENTS

MAIN ACTIONS FOR MARGIN IMPROVEMENT

INDUSTRIAL ELECTRONICS

Significant growth in revenues, partly deriving from programs launched with its main customers and partly through the development of new sectors (railway and e-mobility). Profitability margins expected to remain stable over the period.

OPTOELECTRONICS AND FIBER LASER SOURCES ADDITIVE MANUFACTURING

After a previous period of strong investments and negative impact on the Group EBIT, the BU will carry out a complete turnaround during the plan period.

This will be made possible thanks to repositioning in niche sectors with better margins.

Business Unit although starting from still limited volumes of revenues, will more than double its revenues thanks to new products in the Direct Energy Deposition sector (Repairing - Circular Economy) and in the Powder Bed Fusion (Aerospace, Automotive and Energy markets).

MAIN ACTIONS FOR TOP LINE & MARGIN IMPROVEMENT

LEAD LASER 41% CALL OPTION EXERCISE AND CONSOLIDATION

• Conditions to be satisfied:
  • travels to/from China, agreement
  • with Chinese Management
• Time to exercise: March 31st, 2022

ADDITIVE MANUFACTURING BU SPIN-OFF AND MERGE WITH 3D-NT

• Aggressive product development for high productivity multi laser machines aimed to satisfy requirements of mid quantities/cost sensitive market segments such as high-end automotive and aerospace Becoming a market reference in Italy Value operation through much higher
  • evaluation multiples

NOT INCLUDED IN THE PLAN UPSIDES

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