600 Group PLC Annual General Meeting 14 September 2011

600 Group PLC

Annual General Meeting

14 September 2011

Highlights• Revenue up by 11% to £50.6M

• Underlying operating profit £1.2M (£1.1M)

• Net operating expenses reduced by £7.3M

• Net pension credit of £2.6M with the change to CPI

• Good order book and lower breakeven point

• Acquisition in Poland for production of the Group’s machine tools

• Successful share placement to finance Poland

• Change of bank in the UK to Santander

• Move to AIM completed

Operating Profit Trend

-3

-2

-1

0

1

2

3

2008/9 2009/10 2010/11

Un

der

lyin

g P

rofi

t /

Lo

ss (

£m)

39% of Sales 20% of Sales 14% of Sales 27% of Sales

Structure of the Group

Machine Tools (39% sales)

• Metal turning machines– Conventional (non CNC)

– Workshop CNC

– Production CNC

• Brands: Colchester and Clausing• Oxford Economics positive market

forecast– Double digit growth next 3 years

– Pre recession levels by 2012

• Increasing vertical integration following acquisition in Poland

Machine Tools New Business Model

Poland Production

UK Components

UK Machines

Sales Organisation

EMEALeeds

North AmericaMichigan

AustraliaSydney/Brisbane

South AfricaJohannesburg

Manufacturing Footprint

• EMEA sales organisation relocated• Shorter lead times• Increased margins and earnings• Higher quality• Better market rating as a bona fide engineering operation

Poland Benefits

• Lower material costs

• Skilled workers capable of being trained on CNC machines

• Vertically integrated production with low cost foundries in close proximity

• Good transport links to main markets plus new highway

• Low level of corruption

• Access to other CEE markets

• Poland latest GDP 4.4%

Precision Engineered Components (20% sales)

• Spares for installed base of machines• Bearings and tool holding equipment• High precision tolerances up to 0.5

micron • Poland machining capability• Good recovery for bearings

Laser Marking (14% sales)

• Alternative to inkjet marking• Global trend towards traceability• Proprietary software & laser

technology• Diverse customer base

– Automotive– Aerospace– IT– Solar– Pharmaceutical

• Pipeline of development projects

Mechanical & Waste Handling (27% sales)

• Sub Saharan Africa• Main drivers:

– Infrastructure– Electrification– Mineral extraction

• Positive GDP growth forecasts• Contract with Eskom completed in

2011

Major Issues and Response 2009/11

Outlook

• More flexibility with the move to AIM

• Poland is a medium term solution to the Group’s long term strategic issue on machine tools– Volume of transferred machines is increasing– Integration costs will reduce towards the end of the year– Margin benefits will be visible towards the end of the year– Upside potential over the next two years

• The shift from distribution to manufacturing should be well received by the market

• Good organic prospects offset by the uncertain macroeconomic environment

• Board changes