Fix Rofin: It’s .me for change to unlock long-term …...Fix Rofin: It’s .me for change to unlock long-term stockholder value. I. Rofin at a Glance p. 5 II. Our Proposals and

FixRofin:It’s.meforchangetounlocklong-termstockholdervalueMarch4,2016

Disclaimer

Thispresenta,oncontains“forward-lookingstatements”withinthemeaningofthesafeharborprovisionsoftheU.S.PrivateSecuri,esLi,ga,onReformActof1995.Forward-lookingstatementscanbeiden,fiedbywordssuchas:“target,”“future,”“con,nue,”“an,cipate,”“believe,”“es,mate,”“expect,”“strategy,”“likely,”“may,”“should”andsimilarreferencestofutureperiods.Examplesofforward-lookingstatementsinclude,amongothers,statementswemakeregardingfutureplans,expecta,onsofRofin’slong-termfinancialprospects,marginandcashflowexpansion,andSilverArrow’sstrategyforgrowth,productporOoliodevelopment,marketposi,on,financialresultsandreserves.

Forward-lookingstatementsareneitherhistoricalfactsnorassurancesoffutureperformance.Instead,theyarebasedonlyonourcurrentbeliefs,expecta,onsandassump,onsregardingthefutureofourbusiness,futureplansandstrategies,projec,ons,an,cipatedeventsandtrends,theeconomyandotherfuturecondi,ons.Becauseforward-lookingstatementsrelatetothefuture,theyaresubjecttoinherentuncertain,es,risksandchangesincircumstancesthataredifficulttopredictandmanyofwhichareoutsideofourcontrol.Rofin’sactualresultsandfinancialcondi,onmaydiffermateriallyfromthoseindicatedintheforward-lookingstatements.Therefore,youshouldnotrelyonanyoftheseforward-lookingstatements.ManyfactorscouldcauseRofin’sactualresultsandfinancialcondi,ontodiffermateriallyfromthoseindicatedintheforward-lookingstatementsincludingthosesetforthinourLeVertoStockholdersdatedFebruary23,2016.Weundertakenoobliga,ontopubliclyupdateanyforward-lookingstatement,whetherwriVenororal,thatmaybemadefrom,meto,me,whetherasaresultofnewinforma,on,futuredevelopmentsorotherwise.

Theinforma,oninthispresenta,onisbasedonpubliclyavailableinforma,onaboutRofin.AlthoughSilverArrowbelievesthispresenta,onissubstan,allyaccurateinallmaterialrespectsanddoesnotomittostatematerialfactsnecessarytomakethestatementsthereinnotmisleading,SilverArrowmakesnorepresenta,onorwarranty,expressorimplied,astotheaccuracyorcompletenessofthepresenta,onoranyotherwriVenororalcommunica,onitmakeswithrespecttoRofin.Stockholdersshouldconducttheirownindependentinves,ga,onandanalysisofthepresenta,onandofRofin.Thispresenta,onisnotinvestmentadviceorarecommenda,onorsolicita,ontobuyorsellanysecuri,es.

2 I For further information please visit www.fixrofin.com.

Defini.ons

Analysts Includes:PatrickM.Newton,S.felNicolaus;JoeWiMne,LongbowResearch;TomHayes,NorthcoastResearch;MarkMiller,TheBenchmarkCompany.Excludes:NobleFinancialCapitalMarkets(droppedcoverage);CommerzbankCorporates&Markets(outdatedreport);DeutscheBankResearch(outdatedreport);PiperJaffray(outdatedreport);MetzlerEquityResearch(outdatedreport);DZBank(outdatedreport).

Analystes*mates Isthemeanofalles.matesfortherespec.veperiodpublishedbytheAnalysts

EDGAR TheElectronicDataGathering,Analysis,andRetrievalsystem,performsautomatedcollec.on,valida.on,indexing,acceptance,andforwardingofsubmissionsbycompaniesandotherswhoarerequiredbylawtofileformswiththeU.S.Securi.esandExchangeCommission(SEC).(www.sec.gov/edgar.shtml)

CAGR CompoundAnnualGrowthRate

FactSet FactSetResearchSystem(www.factset.com)

GlassLewis Glass,Lewis&Co.(www.glasslewis.com)

MarketsandMarkets MarketsandMarkets:reportonlasertechnologies,components&applica.onsmarket,globalforecast&analysis,issued2012and2013(www.marketsandmarkets.com)

ISS Ins.tu.onalShareholderServicesInc.(www.issgovernance.com)

Peergroup IncludesCoherent(COHR);IPGPhotonics(IPGP);GSIGroup(GSIG);NewportCorpora.on(NEWP);II-VI(IIVI)Inc.

Peergroupcomposite IncludesthestockpricesofCoherent(COHR);IPGPhotonics(IPGP);GSIGroup(GSIG);NewportCorpora.on(NEWP);II-VI(IIVI)Inc.

Peergroupfilings Includes:10K-Filings;8K-FilingsavailableatEDGAR

RofinorRofin-Sinar Rofin-SinarTechnologiesInc.

Rofinfilings Includes:10K-Filings;8K-FilingsavailableatEDGAR

SEC U.S.Securi.esandExchangeCommission(www.sec.gov)

SilverArrow Includes:SilverArrowCapitalLLPandSilverArrowCapitalAdvisorsLLP,London,UK(www.silverarrowcapital.com)


FixRofin:It’s.meforchangetounlocklong-termstockholdervalue.

I.   RofinataGlance p.5

II.   OurProposalsandNominees p.7-8

III.   StockholderValueDestruc*on p.10-14

IV.  SelectedOpera*onalLowlights p.16-22

V.   CorporateGovernanceDeficiencies p.24-29

VI.   ThirdPartyAnalysis p.31-32

VII.   SilverArrow’sAc*onPlan p.34-36

VIII.   FurtherInforma*onandSuppor*ngMaterial Star*ngonp.38


Rofinisoneoftheleadingcompaniesinthelaserindustrybutwithmediocreopera.onalperformance.

I.RofinataGlance

Rofindesigns,develops,engineers,manufacturesandmarketslasersourcesandlaser-basedsystemsolu.onsforindustrialmaterialprocessingapplica.ons,whichincludeprimarilycuMng,weldingandmarkingawiderangeofmaterials.

Thecompany'sproductporeoliorangesfromsinglelaser-beamsourcestohighlycomplexsystems,coveringallofthekeylasertechnologiessuchasCO2lasers,fiber,solid-stateanddiodelasers,andtheen.repowerspectrum,fromsingle-digitwafsuptomul.-kilowafs,aswellasacomprehensivespectrumofwavelengths.

Salesbybusinesssegment Salesbyregion

Companyprofile:

Sources:FactSet,Rofin

Marking&Micro

Applica/ons,47.0%

MacroApplica/ons,

38.0%

Components,15.0%

Europe,45.0%

Asia,34.0%

NorthAmerica,21.0%

§  LaserMacroProducts:Semiconductorsmanufacturing,Heavy/Lightmanufacturing;Automo.ve,Tooling...

§  LaserMicroProducts:Medicaldevices;LightManufacturing;AdvancedPackaging&PaperIndustry;Semiconductor&Electronics;Photovoltaic….

§  LaserMarkingProducts:Semiconductor&Electronics;Photovoltaic…

§  Components:Medical;Laser…

Products&markets:












Rofin:Acompanyinneedofchange!

§  WebelievethatRofin’sleadershiphasdestroyedstockholdervalueoverthelong-termandshort-term.

§  WebelievethatRofinshowspooropera*onalperformancecomparedtoitspeergroup.

§  WebelievethattheBoardcomposi.ondemonstratesanentrenchedboardwithpoorgovernance.

§  WebelievethatRofin’sboardhastakennumerousstatutoryac*onswithoutshareholderconsent.

§  Thirdpar.esunfavorableopinionsonRofinshowthattheyshareourbeliefs.

VOTEGREENandsupportSilverArrow’sproposals!

Generatechangeandcreatelong-termstockholdervalue:

☞  Proposalno.1:Elec*onofournomineestotheboard:T.Limberger,G.Rainer,J.Kovlerandachievepoten.alsalesupsideof+$180m,costsavingsof$57mandimmediatelystopcashdrain.

RegaincontroloverCorporateGovernance:

☞  Proposalno.2:Advisoryvotetodeclassifytheboardofdirectors;

☞  Proposalno.3:Advisoryvotetoreducesupermajorityvo*ngprovisions;

☞  Proposalno.4:Advisoryvotetopermitstockholdersowning15%ofoutstandingsharestocallaspecialmee*ng;

☞  Proposalno.5:Advisoryvotetopermitstockholderstoactbywri_enconsent.


II.OurProposalsandNominees


VoteforourNominees!

II.OurProposalsandNominees

Name ReasonswhyyoushouldVoteForOurNominees!

Mr.ThomasLimberger,48Ahighlyexperiencedcorporaterestructuringexpert,willprovideafreshperspec,veontheRofinboard.

Mr.ThomasLimbergerhasadeepunderstandingofthematerialprocessing,optoelectronicsandlaserbusiness,havingoperatedforyearsintheseindustries.Mr.Limbergerhasexperiencemanagingbusinessesofupto$5billioninrevenueandhasservedontheboardsofseverallistedcompanies.Mr.LimbergercurrentlyservesasFounder,PartnerandChiefExecu.veOfficerofSilverArrow.HehadbeentheCEOandNa.onalExecu.veofGeneralElectricGermany,AustriaandSwitzerland,overseeingthecapitalandindustrialbusinessesintheregionwith8’600employeesandEUR5brevenue.DuringMr.Limberger’stenureasCEOofOCOerlikonAG,thecompany'smarketcapitaliza.onincreasedfromCHF1.6billiontoCHF8.5billion(+431%)anditssharepriceincreasedalmost5foldwhileoutperformingtheSwissmarket!Infact,thestockpriceincreasedsodrama.cally,Mr.Limbergerreturned40,000op.onstoOerlikonbecausetheequityvalueofhisoverallcompensa.onpackagebecameoutoflinewithpeers.Addi.onally,duringMr.Limberger’sfour-yeartenureasCEOofVonRollHoldingAG,thecompany'sstockpricedoubledfromJanuary2007un.lthebeginningglobaleconomiccrisisinJanuary2009.Duringthesameperiod,theSwissstockmarketdeclined37%.HavingpresidedoverM&Atransac.onsofapproximately$16billioninrecentyears,webelieveMr.Limbergerhastheexper.setooverseetheCompanyinexecu.ngafuturebuyandbuildstrategy.Mr.Limbergerisfocusedonconstruc.vemethodstoincreaselong-termshareholdervaluethroughopera.onalandstructuralchanges.

Mr.GebhardRainer,53C-levelfinancialandbusinessexpertwhichisdras,callyneededatRofin.

Mr.GebhardRainerhasexcep.onalopera.onalandfinancialbackgroundandwouldbeastrongaddi.ontotheBoard.WebelievehewouldbeanexcellentcandidatetoserveasChairoftheAuditCommifee.Mr.RainercurrentlyservesasthePresidentandChiefOpera.ngOfficeratCoachInc.Hepreviouslyworkedinnumerouscapaci.esatHyafHotelsCorpora.onfrom1994-2014,includingtheroleofCFOfornumerousyears.Forthepast35years,hehasgainedopera.onal,financialandstrategicexperienceglobally,throughlivingandworkingintheUnitedStates,Europe,theMiddleEastandAsia.TheBoardhasendorsedMr.Rainerbyinvi.nghimtoserveasadirector.

Mr.JordanKovler,36ThearchitectoftheGovernancerevolu,onatRofin.

WebelieveMr.JordanKovlerisanoutstandingchoiceforRofin’sBoard,especiallyinlightofthechangesneededwithrespecttocorporategovernance,transparencyandshareholdercommunica.ons.Hewillbringauniqueperspec.vetotheBoard,havingspentthelast13yearsadvisingboardsandmanagementteamsoncorporategovernance,investorrela.ons,execu.vecompensa.on,M&Aandstockholderac.vism.Fromarareinsiderperspec.ve,hehasseenthedifferencesbetweenwell-func.oningboardsthathelpproperlyguidethestrategyoftheCompanywhileprovidingaccountabilityandpro-ac.veini.a.vesversusthosethatwerereac.veinnatureandnotworkingtowardsthebestinterestsoftheirstockholders.Infact,Mr.KovlerdesignedtheSilverArrowplantobringtheCompany’scorporategovernanceuptomodernstandards.ThestockholdersneedMr.KovlertoserveasastrongadvocateforgovernanceontheBoard.Mr.KovlerpreviouslyworkedasaSeniorVicePresidentatD.F.King&Co.,Inc.,aproxysolicita.on,corporategovernanceandinvestorrela.onsconsul.ngfirm.Hisexperienceencompassesmanyofthemostcomplexandconten.ousM&Atransac.onsandproxycontestsoccurringintheU.S.andEuropeoverthepasttenyears,alongwithadvisingsomeofthelargestpubliclytradedcompaniesintheU.S.andEuropeonCorporateGovernance,InvestorRela.onsandCommunica.onsprograms.InhisfinaltwoyearsatD.F.King&Co.,Inc.,headvisedcompaniesonover20announcedtransac.onsvaluedatover$350billion.












Rofin’sstockpricehasbeenoutperformedbymostofthepeergroupcompaniesandindices:

§  Rofin’sstockpricedecreasedby17%over1year,outperformedbymostofitspeergroupcompaniesandrelevantindices;

§  Rofin’sstockpricedecreasedby29%over3years,outperformedbyallofitspeergroupcompaniesandrelevantindices;

§  Rofin’sstockpricedecreasedby48%over5years,outperformedbyallofitspeergroupcompaniesandrelevantindices.

WebelieveRofin’sstockbuybackprogramsmaskedpoorstockperformance:

§  Marketvalua.ondroppedby57%from$1.330bto$564m(-$633m)sincefirststockbuybackprogramwhilethecompanyboughtbackstockinves.ng$170m;

§  MostofthepeergroupcompaniesoutperformedRofin’sstockpriceoverthesameperiodof.me.

WebelieveRofin’smisguidedboardandmanagementstrategycouldnotreversethetrendoveryears:

§  Webelievecurrentmanagementhasdisregardedallcallsforachangeinstrategyandcorporategovernancewhichresultedinthecon.nuousunderperformanceofthestock;

§  ISSin2015hasgiventheboardtheworstindustrygovernanceandboardprac.cesscore.

WebelievethatRofin’sleadershiphasdestroyedstockholdervalue.

III.StockholderValueDestruc=on

Stockprice

-17%over1y

ear

Stockprice

-29%over3ye

ars

Stockprice

-48%over5y

ears

Marketvalue

-57%sincefirs

tstock

buyback


Stockpriceperformance(indexed)vs.relevantindices(1year;2/9/15–2/9/16):

§  Rofin’sstockpricedecreasedby17%over1yearwhile

§  S&P500/Informa.onTechnologyindexdecreasedby7%,

§  NASDAQCompositeindexdecreasedby10%,

§  Russel3000indexdecreasedby12%and

§  S&PMidCap400/ElectronicEquipment&Instrumentsindexdecreasedby20%.

Rofin’sstockpricedecreasedby17%over1year,outperformedbymostofitspeergroupcompaniesandrelevantindices.


Stockpriceperformance(indexed)vs.peergroup(1year;2/9/15–2/9/16):

§  Rofin’sstockpricedecreasedby17%over1yearwhile

§  Coherentincreasedby22%,

§  II-IV’sstockpriceincreasedby17%,

§  IPG’sstockpricedecreasedby4%,

§  GSsstockpricedecreasedby11%and

§  Newport’sstockpricedecreased26%.

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan60

70

80

90

100

110

120

130

74.00

82.81

89.56

96.27

117.23

122.11

Rofin-Sinar Technologies Inc. Daily19.80 0.00 0.00% VWAP: High: 125.68 Low: 80.64 Chg: -17.19%

(INDEX) Rofin-Sinar Technologies Inc. - Price(INDEX) Coherent, Inc. - Price(INDEX) GSI Group Inc. - Price(INDEX) Newport Corporation - Price(INDEX) II-VI Incorporated - Price(INDEX) IPG Photonics Corporation - Price

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan70

80

90

100

110

120

130

80.29

82.81

88.60

90.32

93.49

Rofin-Sinar Technologies Inc. Daily19.80 0.00 0.00% VWAP: High: 125.68 Low: 80.64 Chg: 828.00%

(INDEX) Rofin-Sinar Technologies Inc. - Price(INDEX) Russell 3000 - Price(INDEX) S&P Mid Cap 400 / Electronic Equipment & Instruments - IND - Price(INDEX) NASDAQ Composite - Price(INDEX) S&P 500 / Information Technology - SEC - Price

Source:FactSet


Stockpriceperformance(indexed)vs.relevantindices(3years;2/8/13–2/9/16):

§  Rofin’sstockpricedecreasedby29%over3yearswhile

§  NASDAQCompositeindexincreasedby34%,

§  S&P500/Informa.onTechnologyindexincreasedby33%,

§  Russel3000indexincreasedby19%and


Rofin’sstockpricedecreasedby29%over3years,outperformedbyallofitspeergroupcompaniesandrelevantindices.


Stockpriceperformance(indexed)vs.peergroup(3years;2/8/13–2/9/16):


§  Coherent’sstockpriceincreasedby34%,

§  GSI’sstockpriceincreasedby26%,

§  IPG’sstockpriceincreasedby22%,

§  II-IV’sstockpriceincreasedby16%and

§  Newport’sstockpricedecreasedby2%.

4/13 7/13 10/13 1/14 4/14 7/14 10/14 1/15 4/15 7/15 10/15 1/1660

80

100

120

140

160

180

71.04

98.43

115.74

122.08

126.46

133.68



4.13 7.13 10.13 1.14 4.14 7.14 10.14 1.15 4.15 7.15 10.15 1.1660

80

100

120

140

160

180

71.04

92.45

119.55

132.95133.65



Source:FactSet


Stockpriceperformance(indexed)vs.relevantindices(5years;2/9/11–2/9/16):


§  NASDAQCompositeindexincreasedby53%,

§  S&P500/Informa.onTechnologyindexincreasedby45%,

§  Russel3000indexincreasedby37%and


Rofin’sstockpricedecreasedby48%over5years,outperformedbyallofitspeergroupcompaniesandrelevantindices.


Stockpriceperformance(indexed)vs.peergroup(5years;2/9/11–2/9/16):


§  IPGincreasedby136%,

§  Coherentincreasedby39%,

§  GSIremainedunchanged,

§  Newportdecreasedby15%and

§  II-IVdecreasedby20%.

'11 '12 '13 '14 '150

50

100

150

200

250

300

350

52.33

80.4085.01100.33

139.36

236.14



'11 '12 '13 '14 '1540

60

80

100

120

140

160

180

200

220

52.33

91.76

137.39

145.68153.05



Source:FactSet


Stockpriceperformance(indexed)vs.peergroup(11/5/07 – 2/9/16):

§  Rofin’sstockpriceanddecreasedby54%while

§  IPG’sstockpriceincreasedby315%,

§  Coherent’sstockpriceincreasedby169%,

§  II-IV’sstockpriceincreasedby19%,

§  Newport’sstockpriceincreasedby12%and

§  GS’sstockpriceIdecreasedby59%.

WebelieveRofin’sstockbuybackprogramsmaskedpoorstockperformance.


Developmentmarketvalua*onsincefirststockbuybackprogram(11/5/07–2/9/16):

§  Rofin’smarketvalua.ondroppedby57%from$1’330mto$564m(-$633m)whilethecompanyboughtbackstockinves.ngalmost$170m:

§  1stprogram(11/15/07–05/17/08):Investment:$120m,

§  2ndprogram(05/21/10–03/02/11)Investment:$28m,

§  3rdprogram(08/10/12–08/09/13)Investment:$15mand

§  4thprogram(11/02/14–05/15/14)Investment:$6m.

'08 '09 '10 '11 '12 '13 '14 '15

400

600

800

1,000

1,200

1,400

1,600

1,800

564.44

Rofin-Sinar Technologies Inc. DailyHigh: 1512.86 Low: 363.41 Chg: -57.58%

Rofin-Sinar Technologies Inc. - MV

'08 '09 '10 '11 '12 '13 '14 '15

4

5

678910

20

30

40

50

60708090100

200

300

400

500

600700

40.6746.34

112.44118.87

269.01

414.65

Rofin-Sinar Technologies Inc. DailyHigh: 113.69 Low: 29.42 Chg: -53.66%

(INDEX) Rofin-Sinar Technologies Inc. - Price(INDEX) Coherent, Inc. - Price(INDEX) IPG Photonics Corporation - Price(INDEX) GSI Group Inc. - Price(INDEX) Newport Corporation - Price(INDEX) II-VI Incorporated - Price

Source:FactSet,Rofin












Rofin’ssalesandmarketsharekeepslosinggroundcomparedtoitspeers:

§  Salesgrewbyonly2.4%CAGRwhiletotalrela.vemarket1grewwithaCAGRof7.0%(2006–2015);

§  Rofin’ssalesrela.vetoit’speergroupdecreasedby35%from20%downto13%from2006to2015.NumerousAnalystsexpectthatRofinwillcon.nuetolagbehinditspeersongrowthinthecomingyears;

§  Rofinexpectsasalesgrowthratebetween-5%and+1%only.

WebelieveRofinisunabletoachievethemarginsofitspeergroup’saverageandusescurrencyeffectstocreatetheillusionofprogress:

§  Grossmarginwasconstantlybelowpeergroupsaveragebetween2011and2015;

§  Thecomparisonofthegrossmarginof2015vs.2014showsalmostnoimprovementifviewedonconstantcurrencyrates.

WebelieveRofinrisksdeteriora*onofitscompe**veposi*onwithbelowpeergroupaverageR&Dspending:

§  EBITmargindevelopmentshowsanega.vetrendoverthepast5years;

§  R&Dspendingis30%lowerthanpeergroupaverage(2015).GapinR&Dspendingcomparedtopeergrouptendtoincreaseoverthepast3years.

AlmostallofRofin’skeyfinancialra*osarebelowpeergroupaverage:

§  Allselectedprofitability,opera.ngcycleandliquidityra.osarebelowpeergroupaverage;

§  Almostallopera.onalefficiencyra.osarebelowpeergroupaverage.

WebelievethatmoretransparencyanddisclosureinRofin’scommunica*onwithitsstockholdersisnecessarytofullyunderstandthecompany’sperformance.

WebelievethatRofinhasdemonstratedpooropera.onalperformancecomparedtoitspeergroup.

IV.SelectedOpera=onalLowlights

Notes:1Totalrela,vemarketisdefinedasthesumRofin’sandpeergroup’ssales;2in2015vs.2014ifviewedonconstantcurrencyrates.

Rela.vesales

-35%

AlmostNogrossm

argin

Improvement

(2015)2

R&D-30%

thanpeergroup

average

Belowaverage

financialra.os

Salesgrowth

-5%to1%

only(2016E)


16% 18% 19% 19% 19%

16% 16% 15% 15% 14%

10% 10% 9% 10% 9%

19%21% 23% 24% 26%

23%21% 20% 20% 20%

16% 14% 13% 12% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016E* 2017E*

Rofin

Coherent

IPG

GSI

Newport

II-VI

11% 11% 13% 16% 14% 15% 16% 16% 18% 19%

21% 19% 18%19% 19% 17% 18% 16% 16% 15%

15% 14% 12%13% 15% 11% 8% 10% 10% 9%

7% 8% 9%10% 12%

14% 17% 19%21% 23%

27% 26% 24%23% 24% 24% 23% 23%

21% 20%

20% 21% 23% 19% 17% 18% 17% 16% 14% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Rofin

Coherent

IPG

GSI

Newport

II-VI

Rofin’ssalesandmarketsharecon.nuestolosegroundcomparedtoitspeers.


Salesdevelopmentvs.peergroup:

§  Salesincreasedfrom2006to2015withaCAGRof2.4%whilethetotalrela.vemarket*grewwithaCAGRof7.0%.Thepeergroupsalesaveragegrewevenwith7.9%betweeninthesameperiod;

§  SalesdecreasedwithaCAGRof3.4%from2011to2015whilethetotalrela.vemarketgrewwithaCAGRof4.6%.Thepeergroupsalesaveragegrewevenwith6.2%betweeninthesameperiod;

§  Rofin’ssalesrela.vetoit’speergroupdecreasedby35%from20%downto13%from2006to2015;

§  AnalystsexpectthatRofin’ssaleswillgrowfrom2015un.l2017withaCAGRof1.2%whilewhilepeergroupsaveragesaleswillgrowwithaCAGRof7.4%.Rofin’ssalesrela.vetoit’speergroupisexpectedtodecreasefrom13%to12%;

§  Rofin’sownsalesguidanceof$495m-$525m(vs.$520min2015)showsthecompanyexpectsasalesgrowthratebetween-5%and+1%forFY2016.

DevelopmentofRofin’ssalesrela*vetoit’speergroup:

Es*mateddevelopmentofRofin’ssalesrela*vetoit’speergroup:

Salesdevelopment2006–2015:

Sources:Analystses,mates,FactSet,MarketsandMarkets,PeerGroupFilings,RofinFilings,SilverArrowAnalysis;Notes:ThemarketasusedatthisslideisdefinedasthesumofpeergroupssalesplusRofin’ssalesfortherespec,veperiods;Analystdonotshowes,ma,onsforGSIin2017.WehaveassumedthatGSIwillnotgrowfrom2016to2017.2015FiguresforIPG,GSIandNewportarebasedonAnalystfiscalyearses,mates.Alles,matesareasof1Feb2016.

Analystses.mates

421

480

575

350

424

598

540560

530 52012% 14% 20%

-39%

21%

41%

-10%

4%

-5% -2%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

200

250

300

350

400

450

500

550

600

650

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sales Growth

Figuresin$millionFiguresin$million


38.8%36.4%

35.1% 35.6%

37.8%38.9%

35.2%

35.2% 36.0%

36.2%

33.0%

35.0%

37.0%

39.0%

41.0%

43.0%

45.0%

47.0%

2011 2012 2013 2014 2015

Rofin(asreported) Rofin(atconstantcurrencyrates)

Grossmarginasreported:

Grossmarginasreportedvs.grossmarginsatconstantcurrencyrates:

Observa*ons:

§  2015:COGS/Saleswas10%higherthanpeergroupaverage.Webelievethatthereissignificantroomforcostreduc.ons;

§  2015:Deprecia.on/saleswas29%lowerthanpeergroupaverage.Removingdeprecia.onfromCOGSincreasesthegapbetweenRofinandpeergroupfrom10%to13%whichshowsthatlowerdeprecia.onpar.allycompensatesthehigherCOGS;

§  2015:Rofin’sreportedgrossmarginincreasedby1.6ppfrom35.6%to37.8%butwas-13%lowerthanpeergroupsaverage;

§  2011–2015:Grossmarginwasconstantlybelowpeergroupsaveragebetween2011and2015;

§  2015:SilverArrow’sanalysisshowsthatthegrossmarginatconstantcurrencyratesdropsby1.6ppvs.thegrossmarginsasreported;

§  2015vs.2014:Thecomparisonwiththegrossmarginof2014atconstantcurrencyratesshowthatthereisalmostnoimprovement(36.2%vs.36%whichshowsthatgrossmarginimprovements(asreported)aremainlydrivenbycurrencyeffectsandnotbyopera.onalimprovements.

WebelieveRofinisunabletoachievethemarginsofitspeergroup’saverageandusescurrencyeffectstocreatetheillusionofprogress.


Sources:PeerGroupFilings,RofinFilings,SilverArrowAnalysis;Note:2015FiguresforIPG,GSIandNewportarebasedonlasttwelvemonthsactuals(Q42014-Q32015).

38.8%

36.4%35.1% 35.6%

37.8%

45.0%

43.0%41.6% 42.0%

43.4%

33.0%

35.0%

37.0%

39.0%

41.0%

43.0%

45.0%

47.0%

2011 2012 2013 2014 2015

Rofin PeerAverage

-13%

-15%-16%-15%

-14%


38

43

43

46

40

40

41

45

52

57

35

40

45

50

55

60

2011 2012 2013 2014 2015

Rofin PeerAverage

Figuresin$million

14.0%

9.3%

8.8%

6.4%

10.8%

14.1%

8.6%

8.9%

6.8% 8.8%

5.0%6.0%7.0%8.0%9.0%10.0%11.0%12.0%13.0%14.0%15.0%

2011 2012 2013 2014 2015

Rofin(asreported) Rofin(atconstantcurrency)

Research&Development:

EBITmarginasreportedvs.EBITmarginatconstantcurrencyrates:

Observa*ons:

§  2015:SG&A/Saleswasonly2%lowerthanpeergroupaverageeventhoughshowingaGAGRfrom2011to2015of1%.ThelevelofSG&Atendstoincreaseslightly;

§  2015:Thelevelofamor.za.onwas66%belowthepeergroupaverage.Thelevelwasconstantlybelowpeergroupaverage;

§  2015:R&D/saleswas8%lowerthanpeergroupaverage;

§  2015:R&DinUS-Dollaris30%lowercomparedtopeergroupaverage.ThepeergrouphasincreasedtheirR&DspendingwithaCAGRof9.2%overthepast5yearswhileRofin’sR&DspendinggrewwithaCAGRof1.1%.WebelievethatRofinrisksitscompe..veposi.on;

§  2015:D&A/saleswas39%lowerthanpeergroupaverage.D&AsalesgrewwithaCAGRof9.3%overthepast5years;

§  2015:EBITmarginwas32%lowerthanpeergroupaveragewhichisanimprovementcomparedtothepastyears;

§  2015:Rofin’sEBITmarginatconstantcurrencyratesis19%lowerthantheEBITmarginasreported;

§  2011–2015:TheanalysisofRofin’sEBITmarginsatconstantcurrencyratesshowsamorenega.vetrend(GAGR-11%)astheEBITmargindevelopmentasreported(CAGR-6%).

WebelieveRofinrisksdeteriora.onofitscompe..veposi.onwithbelowpeergroupaverageR&Dspending.


Sources:PeerGroupFilings,RofinFilings,SilverArrowAnalysis;Note:2015FiguresforIPG,GSIandNewportarebasedonlasttwelvemonthsactuals(Q42014-Q32015).

-30%

-19%


Rofin’skeyfinancialra.os1areallbelowpeergroupaverages.


:Belowpeergroupaverage :Beferthanpeergroupaverage

Sources:FactSet,PeerGroupFilings,RofinFilings,SilverArrowAnalysis;Note:2015FiguresforIPG,GSIandNewportarebasedonlasttwelvemonthsactuals(Q42014-Q32015).Note:1Selectedkeyfinancialra,osreflect,intheopinionofSilverArrow,themostrelevantra,os.20 I For further information please visit www.fixrofin.com.

In2015Rofinhasstatedthattheirgrossprofitincreasedmainlyasaresulthigherefficienciesandreducedmanufacturingcost:

§  “Wedeliveredverystrongthirdquarterresultsthatdemonstratethatourmeasurestoincreaseefficiencyandprofitabilityaregainingmomentum”(pressrelease,Q3results,Aug.6,2015);

§  “Asapercentageofsalesforthethreeandnine-monthperiodsendedJune30,2015,grossprofitincreasedmainlyasaresultofthehigherefficiencyinproduc,oncombinedwithreducedmanufacturingcost…”(10QreportfiledAug.10,2015);

§  “Thiseffortisgainingmomentum,asevidencedbyourverystrongfinancialresultsforthemostrecentlyreportedfiscalquarter,inwhichwedoubledyear-to-datenetincome,increasedourgrossmargintonearly40%”(pressrelease,Oct.9,2015);

§  “Wearepleasedtoreportstrongfinancialresultsforourfourthquarterandfullfiscalyear.…Wecon,nuetoseetheposi,veeffectsofourcostop,miza,onstrategies,includingourconsolida,onefforts,andwereabletofurtherimprovegrossprofitmarginto40%forthequarter(pressrelease,FY2015andQ4results,Nov.12,2015).

WebelievethatmoretransparencyanddisclosureisnecessarytofullyunderstandtheperformanceofRofinsincetheirgrossprofitincreaseismainlydrivenbycurrencyeffects:

§  Ouranalysisofthefiguresadjustedbythecurrencytransla.oneffectsasreportedbyRofin(including10Q,pressreleases,earningscalls)showsthatthegrossmarginhasonlyincreasedonlyby0.2percentagepoints(36.2%(adjusted)vs.36.0%(previousyear))forfiscalyear2015;

§  Thisshowsthatthemarginimprovementsaremainlydrivenbycurrencytransla.oneffectsandnot“asaresulthigherefficienciesandreducedmanufacturingcost”asstatedbythecompanyseveral.mes;

§  ItseemstousthatRofinowesitsstockholdersandthemarketaclearexplana.onastowhatexactlydrivesitsgrossprofitincrease,internalprogressandevolu.on,orthestrengtheningoftheU.S.Dollar.Wealsoaskthecompanytoexplainwhytheyabstainedfrommen.oningtheirpreviouslystatedgrossmargingoalof40%intheirlatestpresenta.onofquarterlyresults(February4,2016).

WebelievethatmoretransparencyanddisclosureinRofin’scommunica.onwithit’sstockholdersisnecessarytofullyunderstandcompany’sperformance(1/2).


Sources:FilingsRofin-Sinarfor2015includingQ1,Q2,Q3,Q4andfullyearreport;EarningscalltranscriptsRofin-Sinar;SilverArrowanalysis


Sources:FactSet,RofinFilings,SilverArrowAnalysis.

© 2016 FactSet Research Systems, Inc.

Last Rpt Date: 04 Feb '16Rofin-Sinar Technologies Inc. (RSTI) $19.99

Guidance History SALES | Mean

None In Range Beat MissedGuidance Accuracy

SALES Guidance (3Yr Avg.)

Missed By -0.4% Accuracy

Quarter

20141234

20151234

20161234

U.S. Dollar

Date Issued Period Item Guid (Low) Guid (High) Mean Mean Surp (%) Actual Actual Surp (%) Price Impact (%)

04 Feb '16 Q2 '16E Sales 115.0 121.0 129.8 -9.1 - - -10.4

12 Nov '15 Q1 '16 Sales 113.0 118.0 124.8 -7.5 112.5 -2.6 -6.6

06 Aug '15 Q4 '15 Sales 135.0 140.0 149.8 -8.2 142.0 3.3 -6.5

07 May '15 Q3 '15 Sales 130.0 135.0 136.3 -2.8 132.5 0.0 12.2

05 Feb '15 Q2 '15 Sales 121.0 126.0 136.8 -9.7 122.7 -0.6 -8.1

13 Nov '14 Q1 '15 Sales 127.0 132.0 135.8 -4.6 122.4 -5.5 9.0

07 Aug '14 Q4 '14 Sales 142.0 147.0 146.5 -1.3 146.1 1.1 0.7

08 May '14 Q3 '14 Sales 132.0 137.0 138.5 -2.9 134.3 -0.2 6.3

06 Feb '14 Q2 '14 Sales 123.0 128.0 135.7 -7.5 128.6 2.5 4.0

07 Nov '13 Q1 '14 Sales 122.0 127.0 143.3 -13.1 121.2 -2.7 -8.5

01 Aug '13 Q4 '13 Sales 135.0 140.0 146.8 -6.3 147.6 7.3 -0.5

02 May '13 Q3 '13 Sales 132.0 137.0 138.9 -3.2 139.1 3.4 -0.5

07 Feb '13 Q2 '13 Sales 132.0 137.0 134.1 0.3 131.1 -2.5 0.3

08 Nov '12 Q1 '13 Sales 130.0 135.0 133.4 -0.7 142.2 7.3 12.9

02 Aug '12 Q4 '12 Sales 125.0 130.0 156.6 -18.6 147.5 15.7 -2.2

03 May '12 Q3 '12 Sales 130.0 135.0 144.0 -8.0 131.7 -0.6 -10.3

02 Feb '12 Q2 '12 Sales 130.0 135.0 142.0 -6.7 129.4 -2.3 -13.3

04 Nov '11 Q1 '12 Sales 137.0 142.0 153.7 -9.3 131.6 -5.7 -10.9

04 Aug '11 Q4 '11 Sales 155.0 160.0 155.1 1.5 169.5 7.6 -0.8

05 May '11 Q3 '11 Sales 145.0 150.0 142.7 3.3 154.9 5.0 -8.7

© 2016 FactSet Research Systems, Inc.

Last Rpt Date: 04 Feb '16Rofin-Sinar Technologies Inc. (RSTI) $19.99

Guidance History EPS | Mean

None In Range Beat MissedGuidance Accuracy

EPS Guidance (3Yr Avg.)

Beat By +15.7% Accuracy

Quarter

20141234

20151234

20161234

U.S. Dollar

Date Issued Period Item Guid (Low) Guid (High) Mean Mean Surp (%) Actual Actual Surp (%) Price Impact (%)

04 Feb '16 Q2 '16E EPS 0.20 0.26 0.41 -43.9 - - -10.4

12 Nov '15 Q1 '16 EPS 0.19 0.24 0.34 -37.4 0.23 7.0 -6.6

06 Aug '15 Q4 '15 EPS 0.48 0.53 0.56 -9.8 0.52 3.0 -6.5

07 May '15 Q3 '15 EPS 0.39 0.42 0.37 8.5 0.41 1.2 12.2

05 Feb '15 Q2 '15 EPS 0.21 0.23 0.35 -37.1 0.31 40.9 -8.1

13 Nov '14 Q1 '15 EPS 0.28 0.30 0.26 10.1 0.22 -24.1 9.0

07 Aug '14 Q4 '14 EPS 0.30 0.34 0.34 -5.9 0.43 34.4 0.7

08 May '14 Q3 '14 EPS 0.20 0.24 0.23 -3.3 0.23 4.5 6.3

06 Feb '14 Q2 '14 EPS 0.08 0.12 0.26 -61.5 0.16 60.0 4.0

07 Nov '13 Q1 '14 EPS 0.06 0.08 0.37 -81.1 0.08 14.3 -8.5

01 Aug '13 Q4 '13 EPS 0.28 0.31 0.38 -22.0 0.35 18.6 -0.5

02 May '13 Q3 '13 EPS 0.26 0.28 0.37 -27.5 0.31 14.8 -0.5

07 Feb '13 Q2 '13 EPS 0.26 0.28 0.30 -11.0 0.26 -3.7 0.3

08 Nov '12 Q1 '13 EPS 0.25 0.28 0.32 -18.0 0.32 20.8 12.9

02 Aug '12 Q4 '12 EPS 0.25 0.28 0.45 -41.4 0.35 32.1 -2.2

03 May '12 Q3 '12 EPS 0.27 0.30 0.37 -23.5 0.29 1.8 -10.3

02 Feb '12 Q2 '12 EPS 0.27 0.30 0.36 -21.6 0.28 -1.8 -13.3

04 Nov '11 Q1 '12 EPS 0.33 0.36 0.52 -33.7 0.28 -18.8 -10.9

04 Aug '11 Q4 '11 EPS 0.51 0.57 0.54 -0.5 0.60 11.1 -0.8

Surprisehistoryquarterlysales:Rofin’sguidancevs.analystsconsensusandactualsalesperquarter:

SurprisehistoryquarterlyEPS:Rofin’sguidancevs.analystsconsensusandactualsalesperquarter:

Observa*ons

§  RofinquarterlysalesandEPSmissedanalystsexpecta*onsin17outof20quarters(85%);

§  Rofinquarterlysalesmissedtheirownguidancein9outof19quarters(47%);

§  RofinquarterlyEPSmissedtheirownguidancein4outof19quarters(21%);

§  Webelievethisreflectsacombina.onoftheCompanyfailingopera*onallyandbeingunabletoproperlyguideanalystexpecta*onsofRofin’soutlook.

§  Communica.onwithstockholdersneedtobeimproved:

§  WebelievethatRofin’sInvestorpresenta*ondoesnotpresentthecompanyproperlyandlacksrelevantinforma.on;

§  Rofin’squarterlyandannualreportsozenusethesameexactgenericstrategyandmarketquotetoinvestorsi.e.10-K2009,2010,2011,2014;

§  WebelievethatInvestorRela*onsprocessesneedtobedrama.callyimproved(i.e.earningscalls,datadisclosure,outreach,communica.ons,etc.).

WebelievethatmoretransparencyanddisclosureinRofin’scommunica.onwithit’sshareholdersisnecessarytofullyunderstandcompany’sperformance(2/2).













Don’tbefooledbythisBoardandtheirlipserviceoncorporategovernance.

Webelievethattheboardcomposi*ondemonstratesanentrenchedboardwithoutpropergovernance:§  LengthyTenure,§  LackofIndependence,§  Ques.onable“Known”RelatedPartyTransac.ons,§  Viola.onoftheirownre.rementageBylaw,§  Ques.onableLawsuitand§  Compe.toronOurBoard.

WebelievethattheBoardhastakenunacceptableac*ons:§  FireCEOandnameCOOasnewCEO,§  AppointJenniferBunisasanewdirector,§  Removedmandatoryre.rementage,§  OnlyputNon-BindingProposalsonAgendaforDeclassifica.onoftheBoardandElimina.ngSupermajorityVo.ng->azerreceivingstockholderproposal

fromSilverArrow,§  IgnoredSilverArrow’sstockholderproposalsoncallingaspecialmee.ngandac.ngbywrifenconsent,§  PublishedwhatwebelievetobefalseandmisleadingstatementsaboutSilverArrownominees,§  Indicatedthereisathoroughannualprocesstoevaluatecurrentdirectorsandpoten.allyaddnewdirectorswhentherehadn’tbeenanyBoard

refreshmentin12+years,§  AddednewlanguagetoBylawssta.ngthatthemajorityoftheBoardwillselectreplacementDirectorsforanyresigna.on,and§  Adoptedexclusiveforumprovisionwithoutstockholderapproval.

DON’TBEFOOLEDBYTHISBOARD!WEBELIEVEEVERYPOSITIVECORPORATEGOVERNANCECHANGEMADEHASBEENINREACTIONTOSILVERARROW.IFNOTFOROURADVOCACYEFFORTS,WEBELIEVETHECOMPANYWOULDHAVECONTINUEDDOWNTHESTATUSQUO,WITHNONEWDIRECTORS,

NOPROPOSALSTOIMPROVECORPORATEGOVERNANCEANDNOACCOUNTABILITYFORTHEIRACTIONS!

V.CorporateGovernanceDeficiencies


WebelievethattheBoardcomposi.ondemonstratesanentrenchedboardwithoutpropergovernance.


-  Nonewdirectorsaddedin12+yearsbeforeSilverArrowaskedforrepresenta.on;-  6ofthe8directorshaveservedontheboardfor12+years;4ofthe8directorshaveservedontheboardfor20+years;-  Averagetenureof18+years(withoutincludingthenewCEOandnew“independent”director);-  Averagetenureof14years(includingthenewCEOandnew“independent”director).

-  Mr.WillisandMr.Fantonehavehadnumerouscross-directorshipsoverthepast18years;-  WebelieveMs.Bunis(newdirector)haspreviousrela.onshipswiththeBoardandsherecentlystartedalaserconsul.ngfirm

withherhusband;-  Only5ofthe8directorsaredeemedindependentbyNASDAQ.

LackofIndependence

LengthyTenure

-  Mr.BaaselhasservedontheBoardfor20+yearswhileearningover$11mmforleasingpropertytoRofin-Sinar;-  Personalrela.onshipbetweenmanagementandthirdpartyconsultants–couldthathaveanimpactoninflatedcostand

objec.vityofac.ngpersonnel?Ques*onable

“Known”RelatedPartyTransac*ons

-  4currentdirectorshadsurpassedtheCompany’srecentlydeletedmandatoryre.rementagebylaw,includingtwoupforelec.onat2016annualmee.ng;

-  Averageageof65years.Violatetheirown

Re*rementAgeBylaw

-  Mr.Smokehasservedasheadofauditcommifeewhilebeingaccusedof“organizedaccoun.ngfraud”byhispreviousemployer.Ques*onable

Lawsuit

-  Mr.FantoneisthePresidentandChiefExecu.veOfficerofOp.kosCorpora.on,anop.calengineeringcompanywithnumerouspatentsrelatedtofiberlasers.ArehisinterestsmorealignedwithOp.kosorRofin?Shoulda

Compe*torbeonOurBoard?


WebelievethattheBoardhastakenunacceptableac.ons.


WhythisisUnacceptable?-  WhiletheCompanyisbeingcri.cizedforopera.onaldeficiencies,theBoarddeterminedthattheyshouldhirethethen

currentCOO(withover15yearsattheCompany),whowebelievewasculpableformanyoftheissuesailingtheCompany;-  TherewasnoknownoutsidesearchandtheCompanyhadnopreviouslydisclosedsuccessionplan;-  TheBoarddeterminedthatthenewCEOasaBoardmemberwouldnotbera.fiedbystockholdersun.l2018,ineffectgiving

stockholdersnovoiceontheCEOchoiceforalmostthreeyears.FireCEOandNameCOOasNewCEO

WhythisisUnacceptable?-  TheBoardaddedMs.Bunisazeralmostsixmonthsofconversa.onswithSilverArrowonboardrepresenta.on;-  WebelieveMs.Bunis’skillsdonotmatchthosethatareneededontheBoard;-  Rofinreflectsinitsproxystatementverymuchonher“strongbusinessandindustryhistory”whichwebelievehasbeen

posi.velyinfluencedbypersonalrela.onships:AtSynrad,whereshespentmostofhercareer,shehadbeenpromotedazerherhusbandwasnamedpresidentin1998andreportedtohimun.lbothlezthecompanyin2012;

-  WebelieveMs.Bunishasrela.onshipswithatleastoneBoardmemberandherhusbandstartedalaserconsul.ngfirmin2015;-  TheBoarddeterminedthatMs.Buniswouldnotbera.fiedbystockholdersun.l2018,ineffectgivingstockholdersnovoice

onheraddi.onforover2years;-  TheBoarddidnotseekinputortakesugges.onsonnewdirectorsfromstockholders.

AppointJenniferBunis

asaNewDirector

WhythisisUnacceptable?-  Whenmakingthefirstposi.vecorporategovernancechangesincebeinglegallyobligatedtora.fyexecu.vecompensa.on,

theCompanytookthisopportunitytoensuretheydidnotimprovetheiroverallCorporateGovernance,by:-  RemovingMandatoryRe.rementAgeinthefaceofaproxycontestwheretwoincumbentnomineeshavesurpassedthe

re.rementageand-  Adop.ngExclusiveForumprovisionwithoutstockholderapproval.

AdoptMajorityVo*ng

->AserReceiving

StockholderProposalfromSilverArrow


WebelievethattheBoardhastakenmoreunacceptableac.ons.


WhythisisUnacceptable?-  Whileweagreethatthereareextenua.ngcircumstanceswhereexcep.onscanbemadeforamandatoryre.rementage,in

theory,suchprovisionsaredesignedtoensureanappropriatelevelofboardrefreshment;-  TheCompanypreviouslyignoredtheMandatoryRe.rementAgeonthreeoccasions,webelieveshowingnoadherencetooneoftheir

fewposi.veCorporateGovernanceprovisions.RemovedMandatory

Re*rementAge

WhythisisUnacceptable?-  WebelievethisisanotherinstanceoftheBoardplayinggames,astheycouldhavechosentoputbindingresolu.onsontheagendaforboth

proposals;-  Norecommenda.onmadeandtheBoardcouldhavesimplyrecommended“against”ourstockholderproposal,ratherthan

confusingtheissueforholdersandtryingtotakesomecreditforbringingtheitemsforth;-  EventhoughtheBoardhasseenthatsuchproposalsareoverwhelminglysupportedbyproxyadvisoryfirmsandins.tu.onal

investors,theyhavetriedtoplaythelet’swaitandseeapproach.

PutNon-BindingProposalsonAgendaforDeclassifica*onoftheBoardand

Elimina*ngSupermajorityVo*ng->AserReceiving

StockholderProposalfromSilverArrow

WhythisisUnacceptable?-  Bynotincludingallagendaitemsontheirproxycard,theBoardchosetodisenfranchiseanystockholdervo.ngonthe

Company’swhiteproxycardfromvo.ngonallagendaitems;-  Rofinhasnotdisclosedthisinforma.onopenlysothatstockholdersunderstandtheothervo.ngitemsontheSilverArrow

greenproxycard;-  WebelievetheBoardtriedtomakesomereac.vechangestoourfivestockholderproposals,butonlyreacted

substan.allytotheonlyproposalthatwasn’tthreateningtothem(adop.ngmajorityvo.nginuncontestedelec.onswhentheCompanywasinthemidstofacontestedelec.on).

IgnoredSilverArrow’sStockholderProposalsonCallinga

SpecialMee*ngandAc*ngby

Wri_enConsent


WebelievethattheBoardhastakenevenmoreunacceptableac.ons.


WhythisisUnacceptable?-  Ratherthanfocusingtheircampaignontheirownperformance,corporategovernanceandthestrengthoftheirnominees,

theyhavechosentoengageinanega.ve,shrillcampaign,designedtodistractstockholdersfromtherealissues-  TheBoardisintentontwis.ngthetruthandbringingupirrelevantdetailsoftheSilverArrownomineestodistract

stockholdersfromtheseriousissuesoftheincumbentRofinNominees.A_empttoSlander

SilverArrowNominees

WhythisisUnacceptable?-  Itisvirtuallyimpossiblethatoverthepast12years(beforeSilverArrow)theNomina.ngCommifeehadanyreasonable

processtoafempttorefreshtheBoardorimprovegovernance;-  ItisshockingthattheNomina.ngCommifeeallowedMr.SmoketoserveasChairoftheAuditCommifee,givenalawsuit

relatedtohispreviousroleasCFOofacompany;-  Itisques.onablethatMr.Baasels.llservesontheBoard,over20yearsazersellinghiscompanytoRofinandhes.ll

collectsrentpaymentfromtheCompany.

IndicatedThereisaThoroughAnnualProcesstoEvaluate

CurrentDirectorsandPoten*ally

AddNewDirectors

WhythisisUnacceptable?-  Webelievethatthiswasputinplacebecauseofacurrentdirector(Mr.Wirth)indica.ngthatheplanstostepdownfrom

theBoardinshortorder.Inordertopreservethestatusquo,theBoardhaslikelydeterminedtoannouncethisac.onazertheAnnualMee.ng,ratherthanallowstockholderstohaveanyvoiceonmorehandpickedindividual(s)joiningtheBoard.WeimploretheBoardtoadheretoposi.vecorporategovernance,evenifjustone.me.

AddedNewLanguagetoBylawssta*ng

thattheMajorityoftheBoardwillSelect

ReplacementDirectorsfor

anyResigna*ons


Rofin’sNominees–Doyouwanttocon.nuetoentrusttheseindividuals?


Name Age Note

Mr.DanielJ.SmokeBoardTenure–13years

66

Mr.Smokewasfiredwithcauseandaccusedofseriousviola.onsrelatedtohispreviousemploymentatJACProducts,whereheservedasCFO.NotonlydidtheBoardappointhimHeadoftheAuditCommifee,healsoservesasamemberoftheNomina.ngandCompensa.onCommifees.Weques.onwhytheBoardwouldre-nominateMr.Smoke,inlightofhislegalissuesandlengthytenure.

Mr.CarlF.BaaselBoardTenure–20years

74 DirectorBaaselhasservedontheBoardasanaffiliateddirectorfor20years,sincesellinghisCompanytoRofin.Hehasalsoprofitedhandsomelyfromreceivingover$11mmfromtheCompanyforleasepaymentsofbuildingspaceused.WearedismayedthattheCompanywouldleasepropertyfromoneofitsdirectors,especiallyforsuchalongperiodof.me.ThiswouldseemtocreateaconflictMr.Baaselashecon.nuallyhadtoweighhisowninterestsagainststockholders’interestseach.metheissueofhispropertycameup(inaddi.ontootherpoten.alconflicts).Hehasalsosurpassedthemandatoryre.rementagefornumerousyears.Asanaffiliateddirector,hedoesnotserveonanykeycommifees.Weques.onwhytheBoardwouldre-nominateMr.Baaselinlightoftheaforemen.onedrelatedpartytransac.ons,hisinabilitytoserveonkeycommifees,novalueaddfromspecificknowledgeoftheCompanyhesold20+yearsago,hislengthytenureandhisage.

Mr.GaryK.WillisBoardTenure–20years

70 DirectorWillishasservedontheBoardfor20years.HehasahistoryofservingonnumerousBoardswithMr.StephenFantone,ChairoftheNomina.ngCommifee.Webelievethatsuchcrossdirectorshipscanimpugnanindividual’sindependence.Hehasalsosurpassedthemandatoryre.rementage.Weques.onwhytheBoardwouldre-nominateMr.Willis,inlightpoten.alindependenceissues,lengthytenureandage.

BYVOTINGTHEGREENPROXYCARDANDELECTINGMR.LIMBERGER,MR.RAINERANDMR.KOVLER,STOCKHOLDERSCANCHANGETHEDYNAMICSOFTHISENTRENCHED,LONG-TENUREDBOARD.MR.SMOKE,MR.BAASELANDMR.WILLISHAVESERVEDACOMBINED53YEARSONTHEBOARD!












Thirdpar.es’unfavorableopinionsofRofinillustratethatmanyshareourbeliefs(1/2).

§  ISSProxyPaper(02/19/2015)Board:ISSQuickScoreof7witharedflagfor“BoardComposi,on”Shareholderrights:QuickScoreof8withredflagsfor“TakeoverDefenses”and“Mee,ngandvo,ngrelatedissues”Governance:ISSQuickScoreof8(Note:ascoreof1indicateslowergovernancerisk,whilea10indicateshighergovernancerisk.Redflag:Thetotalnumberofpointsinthissubcategoryisatthebofomofthepossiblerange.TherecentupdateasofFebruary1,2016showsthesamescores)

§  GlassLewisProxyPaper(02/20/2015):"ThreeofthesevendirectorsareeitheraffiliatedwiththeCompanyorareinsiders.Webelievethisraisesconcernsabouttheobjec=vityandindependenceoftheboardanditsabilitytoperformitsproperoversightrole”;"DirectorBaaselreceived$883,000inleasepaymentsfromtheCompanyduringthemostrecentlycompletedfiscalyear.Weques,ontheneedfortheCompanytoleasepropertyfromoneofitsdirectors.Weviewsuchrela,onshipsaspoten,allycrea,ngconflictsfordirectors,astheymaybeforcedtoweightheirowninterestsinrela=ontoshareholderinterestswhenmakingboarddecisions”.

§  op*cs.org-IndustrySpecialistPublica.on(07/08/15):“ThereisaschoolofthoughtthatRofin'sorganiza=onalstructureisfarmorecomplicatedthanisneededforwhat-byindustrialstandards–remainsarela,velysmallcompany,andthatvariousfacili,esandback-officefunc,onscouldbeconsolidatedmoreeffec,vely.”

§  S*felNicolaus(08/06/15):“Revenuesguidancedisappoin=ng”;“InternalDiodeproduc,onishavingyieldissues”;“Execu=onriskassociatedwithrampingfiberlaser”;“OutsizedexposuretosecularlydeclininghighpowerCO2market”.

§  TheBenchmarkCompany(08/07/15):“Rofinsaleshavedeclinedsince2011”;“Rofinmarginsarebelowthoseofcompe=ngfirms”;“Rofinfacesstrongcompe==on”.

VI.ThirdPartyAnalysis


Thirdpar.es’unfavorableopinionsonRofinillustratethatmanyshareourbeliefs(2/2).

§  ac*viststocks.com(10/13/15):“RofinisbaVlingthelikesofIPGPhotonics,Lumentum,CoherentandnLight.Rofinwouldbeabletocompetemoreeffec=velyifanumberofchangesweremade,includingthepersonnelatcompanydirectorlevel.NewdirectorsareneededtohelprefocusRofinandaddfreshperspec=veswithagreaterfocusonstockholderaccountability.”

§  op*cs.org-IndustrySpecialistPublica.on(11/16/15):“Rofindisappointswithweakoutlook…Weakoutlookhitsstockprice”

§  EuroamSonntag(12/08/15):“Somethingiswrong!…Sharebuybackswerecarriedoutonlyiftherewereopportunis,ctradedatesforstockop,onsfordirectors.”(inrela,ontothevariousdirectorsdealingsinabuybackperiod)

§  LongbowResearch(12/11/15):“WeexpectthatRofin’sseeminglycomba=veappointment(Ms.JeniferBunis)willpushmoreundecidedshareholdersinSilverArrow’scorner”;“Shareholdersmayobjectthenewly-appointedJeniferBunisisnotatradi=onalcandidate”;“WenoteMs.BunisdoesserveonafundraisingcommideewithcurrentRSTIDirectorStevenFantone,thereforeitcertainlyappearswiththisappointment,thelegacyBoardisinten=onallyentrenchingitselffromtheoutside”.

§  LongbowResearch(02/02/16):“Smoke,butNoFire;DowngradeRofintoNEUTRAL”;“WehavenotyetseenRofinmakeinroadswithanymajorcuung/weldingOEMs;“Analystseesriskin…lossofmarketshare,adverseproductmix,difficultyinachievinghighersalesvolumesandgrossmargins…and/ormorefiberlasercompe,tors…andpoorexecu=onofcurrentandfutureacquisi,ons.“

VI.ThirdPartyAnalysis








VI.   ThirdpartyAnalysis p.31-32




DedicatedSilverArrowprogramtoachievecostandmarketleadership.

VII.SilverArrow’sAc=onPlan

LongTerm>3years

MidTerm1-2years

§  Removeunnecessaryduallis.nginGermany($500-800k)anddualHQ;

§  Eliminatelargeconsul.ngspendingbytheBoardandManagement($3-5m);

§  Consolidateglobalopera.onstoreducebasecosts($4-6m);

§  Ini.ateOpera.onalExcellenceProgramandreduceHigh-PowerFibermanufacturingcostby+20%;

§  Ini.ateDiodeproduc.onandreducerelatedcoststoincreasecompe..veness;

§  Accelerateultra-short-pulsedevelopment(Pico/Femto);

§  Refocussalesforceongloballandscapewithclearannualtargets:§  Launch2.5KWFiberModule(MacroOEM);§  Launch<2.0KWFiberModule.

§  DrivenewSmartphoneintegra.onkitsalespushinUSandAsia(ceramic/sapphire/glass);

§  AccelerateFiberLasersalesini.a.veinChina;§  Analyseop.malproductmix(CO2/Fiber)toadjust

subs.tu.onimpactandgainmargin;§  Installaccre.vesmallscaleM&Atoaddtechnology

andmarketshare.

ShortTerm<1year

Est.savingsof$8-$12m.

§  Roll-outfullscalecentralglobalsourcing/purchasing(e-bidding,crossBU,etc.);

§  Completesiteconsolida.onforGermanyandtheUKwhilecon.nuingglobalrealignment;

§  FocusChineseproduc.ononlowpowersystems;§  Opera.onalExcellencepushtoincreaseprofitability

ofreorganizedcompany;§  StrengthensalespipelineinUSandAsiawhile

buildingEUleadership,con.nuetobuildtop-talent:§  NewHigh-PowerFibermodule>3.0KW;§  Establish/expand<2.0KWFiberModule;§  PushM&DFiberLaseramplifierdemand;§  BuildSmartphonecuMngkitsexper.seand

marketglobally;§  ExpandandwinnewOEM’sinHigh-PowerFiber

Laser;§  FocusonnewOEM’sinsemiconductor-market

(USP-L);§  Newapplica.ons&systemtechnologye.g.

Abla.on,3Dprint,Excimerreplacementfocus,Medical;

§  Accre.vemidsizeM&Atoaddtechnology,marketshare;

§  Exploretechnologicalpartnerships.


§  Finalize“One-Company”approachtocompletecentraliza.onofallinternalprocesses;

§  Re-evaluatepreviouslylaunchedproduc.onop.miza.onandsales/marke.ngconceptsforenhancedspeed:§  Globalplaeormproduc.onprocess;§  FocusonFiber,USP,Diodeandcon.nueto

buildcomponentsandservicebusinessandconcepts;

§  Expand“SystemsStrategy”onaworldwidelevel;

§  IncreasemarketfocuslikeJapanandKoreawithstrengthenedplaeorminChina;

§  Expandplaeormandsystemsstrategyforrefocusedrevenuemodel;

§  Buildnewtechnologycentreplaeormforhighertechnologyoutput;

§  AcceleratelargerscaleM&Aandpartnershipapproach.


OngoingImprovement

CycleSiteanden.tyconsolida.onprocess/produc.onnetworkenhancement,establishcon.nuousimprovementprocessesaroundmeasurableCTQ’s(Opera.onalExcellence).Centraliza.onofservicesandoutsourcedprocesses(sales,finance,sourcing,R&D,legal,strategy/M&A,etc.)–refocusoninternalprocesses(audit,compliance,etc.).

HRandleadershipevalua.onprogramwithindustryleadingincen.vesbasedonmeritocracyandperformance.

Poten=alforsignificantEBITDAupsidethroughnumerousopportuni=estoincreasesales,marketshareandefficiencyofRofinandbyimplemen=nganOpera=onalExcellenceProgramdrivingbothtop-andbodomlineimprovements.

Est.salesupsideof$80-$100m. Est.salesupsideof$60-$80m.

Sources:SilverArrowanalysisandes,ma,ons34 I For further information please visit www.fixrofin.com.

VII.SilverArrow’sAc=onPlanStrongopera.onalupsidepoten.altothebenefitofstockholders.

§  Streamlinetechnology/productporeolio;focusonhigh-marginbusinesswithsubstan.algrowthpoten.al(i.e.fiberlaserinnewapplica.ons(2.5KW;>3.0KW;<2.0KW),USPLandnewAbla.on,3Dprint,Excimerreplacement);

§  Con.nuetostrengthentheglobalmarketleaderposi.oninMACRObusinessunit(welding,cuMng);§  Expandingposi.oninMICRObusinessunit(FinecuMng,structuringapplica.ons,etc.);§  ExtendingCOMPONENTbusinesstocatertoglobaldemandsofthemanufacturingindustry;§  Reconfigura.onoftheglobalmanufacturingnetworktolowerthegloballeveloffixcosts(i.eDiodes,etc.).

§  Refocusondiodecostcomponent(50%ofBillofMaterial);§  Newsalespush&marketapproachcounterac.ngEuropeandependencyandriskfrom‘ChinaSeismology’;§  Standardiza.onofexpensivecustomizedsolu.ontoplaeormapproachtosupportcustomerdemands;§  Opera.onalExcellenceProgramtodriveprofitabilityacrossbusinessunits(achieveindustrybenchmarkinphase1);§  Expansioninselectedhigh-growthmarketswithnewproductporeoliosandadedicatedcross-sellingapproach;§  Con.nuetoscoutforM&Aopportuni.esinthehightechlandscape->marketconsolida.onopportuni.es.

§  Introduceacompanywidecrossbusinessassessmenttoiden.fyleadershipdevelopment;§  Reorganiza.onofSalesForcetomeetglobalcustomerbasewithcrossbusinessapproach;§  Introducesharedserviceconceptforcentralorbackofficefunc.onsacrossthecompany;§  HarmonizeR&Dorganiza.oncurrentlyopera.ngdisconnected;§  Improvementofcapitaldeployment,networkingcapital(cashconversioncycle),keepCAPEXvs.D&Aatcurrentlevel.

Technology&Footprint

Growth&Profitability

Management&other

§  Significantupsidepoten.alinthevalua.onovertheshort,midandlong-termthrough:1.  Improvementininnova.oncyclebyfocusingonhigh-valueprojects(fibernewtech,USPL,smartphonekits,etc.);2.  Shizfromengineeringdrivenintobuildingasales-marke*ngdrivenorganiza*on;3.  Marginopportuni.esthroughconsolida*onofoldM&Aandcrosscompanysharedserviceimplementa*on;4.  Focussedcost-outini*a*veondiodeproduc*on,plaeormapproachandrefocusedR&D;

§  DriveafocusedIRini*a*vetoreinvigoratethemarketswiththistechnologyleader.

Poten*alimpactupto:+$180mSalesUpside+$57mCostReduc=on

Sources:SilverArrowanalysisandes,ma,ons.35 I For further information please visit www.fixrofin.com.

Rofin:Acompanyinneedofchange!

§  WebelievethatRofin’sleadershiphasdestroyedstockholdervalueoverthelong-termandshort-term.

§  WebelievethatRofinshowspooropera*onalperformancecomparedtoitspeergroup.

§  WebelievethattheBoardcomposi.ondemonstratesanentrenchedboardwithpoorgovernance.

§  WebelievethatRofin’sboardhastakennumerousstatutoryac*onswithoutshareholderconsent.

§  Thirdpar.esunfavorableopinionsonRofinshowthattheyshareourbeliefs.

VOTEGREENandsupportSilverArrow’sproposals!

Generatechangeandcreatelong-termstockholdervalue:

☞  Proposalno.1:Elec*onofournomineestotheboard:T.Limberger,G.Rainer,J.Kovlerandachievepoten.alsalesupsideof+$180m,costsavingsof$57mandimmediatelystopcashdrain.

RegaincontroloverCorporateGovernance:

☞  Proposalno.2:Advisoryvotetodeclassifytheboardofdirectors;

☞  Proposalno.3:Advisoryvotetoreducesupermajorityvo*ngprovisions;

☞  Proposalno.4:Advisoryvotetopermitstockholdersowning15%ofoutstandingsharestocallaspecialmee*ng;

☞  Proposalno.5:Advisoryvotetopermitstockholderstoactbywri_enconsent.


VII.SilverArrow’sAc=onPlan


VIII.FurtherInforma.onandSuppor.ngMaterial


CurrentBoardofDirectors

V.CorporateGovernance

Sources:Rofindefini,veproxystatementasof2016/02/17

Name Affilia*on Shares Stock Gen- Age KeyCommitees Term Term Tenure2 BoardMember owned1 op*ons der Audit Comp Nom start end CarlF.Baasel Director 0.41% M 74 1996 2016 20

Upforelec.on

in2016

DanielJ.Smoke Independent 0.16% M 66 Chair ✔ ✔ 2003 2016 13 Director GaryK.Willis Independent 0.18% M 70 ✔ Chair ✔ 1996 2016 20 Director StephenD.Fantone Independent 0.06% M 62 ✔ ✔ Chair 2005 2017 11 Director PeterWirth Chairman 0.07% 0.09% M 69 1996 2017 20 JeniferBunis Independent 0.01% F 51 2015 2018 Director ThomasMerk CEO 0.02% 0.78% M 53 2015 2018 RalphE.Reins LeadIndependent 0.14% M 75 ✔ ✔ ✔ 1996 2018 20 Director

Total

ownership3:1.04% Avg.age:65 Avg.

tenure3:17 1)Ownershipcalcula,onsbasedon28'507'403sharesoutstandingasofJanuary22,2016; 2)Tenureatannualgeneralmee,ng2016 3)TheamountslisteddoesnotincludesharesofCommonStockthatmaybeacquiredwithin60daysofJanuary22,2016throughtheexerciseofstockop,ons;

4)AvgTenureexcludesJ.BunisandT.Merksincetheirtenureisbelowoneyear


KeyObserva.onsonRofin’sPresenta.on

§  WebelieveRofinusesselec*vedatapointsandgenerali*estomaskweakhistoricalfinancialperformance.Webelieverealityshowsadifferentpicture:poorcompanyperformancecomparedtoitspeergroupoveryearsandthedestruc*onofstockholdervalue.

§  RofinpresentsthecurrentBoardasthebestsolu.on;however,webelievetheBoardhasaresponsibilityforthepoorcompanyperformanceandthedestruc*onofstockholdervalueoverthepastyears.

§  WebelieveRofinhasneverpresentedacomprehensivestrategytothepublic.Rofin-Sinardoesnotpresentanyanalysistodemonstratehowtheirstrategywillcreatelong-termstockholdervalue.WebelieveRofinhasplagiarizedtheSilverArrowstrategybyaccep.ngallheadlinesandsandbaggingthenumberspresented.

§  WebelieveRofinagaindidnotpresentanyevidencetosupportmanyofthepersonalunsubstan*atedallega*onsofournominees.

39 I Confidential I © SilverArrow Capital LLP

VIII.Furtherinforma=onandsuppor=ngmaterial


Observa.onsonRofin’sPresenta.on


RofinSays… Ourobserva*on

RofinhasaClearlyDefinedStrategytoDriveCon.nuedGrowth

Rofin’ssalesandmarketsharekeepslosinggroundcomparedtoitspeers:§  Salesgrewbyonly2.4%CAGRwhiletotalrela.vemarketgrewwithaCAGRof7.0%

(2006–2015);§  Rofin’ssalesrela.vetoit’speergroupdecreasedby35%from20%downto13%

from2006to2015.§  Rofinexpectsasalesgrowthratebetween-5%and+1%only.

RofinisDeliveringonitsFiberLaserStrategy–Approximately50%ofitsHigh-PowerSalesarenowFiber

Rofinhasnotdisclosedthepropor.onofHigh-PowerFiberLasersalestototalsales.Mr.MerkhaspubliclystatedattheNovember24,2015GermanEquityForumwhenaskedabouthighpowerfiberlaser’sshareofturnover“weonlydisclosethatfigureoncethehighpowerfiberlasersalesareofasignificantsize”

Rofin’sstrongR&Dcapabilityisfocusedonfurthertechnologicaladvancementstosupportlong-termgrowth

WebelieveRofinrisksdeteriora.onofitscompe..veposi.onwithbelowpeergroupaverageR&Dspending:§  EBITmargindevelopmentshowsanega.vetrendoverthepast5years;§  R&Dspendingis30%lowerthanpeergroupaverage(2015).GapinR&D

spendingcomparedtopeergrouptendtoincreaseoverthepast3years.

Rofin’sMarginEnhancementStrategyisAlreadySucceeding

WebelievethatRofinisunabletoachievethemarginsofitspeergroup’saverageandthatcurrencyeffectscreatetheillusionofprogress:§  Grossmarginwasconstantlybelowpeergroupsaveragebetween2011and2015;§  Thecomparisonofthegrossmarginof2015vs.2014showsalmostno

improvementifviewedonconstantcurrencyrates.

ROFIN’sProac.veCostReduc.onandEfficiencyProgramsareDrivingMarginGains

Webelievetheconsolida.onofcompaniesandsiteswaslongoverdue.Forexample,twoGermancompaniesrecentlymergedwereinRofin’spossessionsince1997and2007,respec.vely.




Rofinsays… Ourobserva*on

ResultsforSeasonallyLowQ1GenerallyinLinewithManagementExpecta.ons

TheCompany’sstockpricedecreaseddrama.callyazerthecommunica.onofQ1results.Rofin’sresultswerebelowanalystexpecta.ons.

TheCompany’sHistoricalPerformanceisaSuccess

§  WebelieveRofin’ssalesandmarketsharekeepslosinggroundcomparedtoitspeers

§  WebelieveRofinisunabletoachievethemarginsofitspeergroup’saverageandusescurrencyeffectstocreatetheillusionofprogress

CurrentBoardBestQualifiedtoincreaseLong-termvalueforallshareholders

§  WebelievetheBoard,whichhasanaveragetenureof17years,isfullyresponsibleforthepoorperformanceofthecompanyandthepoorgovernancelevelinthepast.

§  Webelievethattheboardcomposi.ondemonstratesanentrenchedboardwithoutpropergovernance.WebelievethattheBoardhastakenunacceptableac.ons.

RofinHasAStandardBoardVeMngProcess

TheRofinNomina.ngCommifeehasnotcontactedourreferences,andwebelievetheyhaveinsteadrelieduponprivateinves.gatorsandinaccuratepressclippings.




Rofinsays… Ourobserva*on

Mr.LimbergerHasaTrackRecordofLong-TermValueDestruc.on

Mr.ThomasLimbergerisahighlyexperiencedcorporaterestructuringexpertwithdeepknowledgeofthelaser,optoelectronicsandmaterialsprocessingmarketsandRofin’scustomerandtechnologybase.Healsoisthemainrepresenta.vebehindSilverArrow’sownershipof~10%ofRofin’soutstandingshares.WebelievehewillhelpensurethatRofin’sopera.onsarestreamlined,managedmoreefficiently,whilehelpingsteertheCompanyintonewdevelopingmarketsandapplica.ons.WithdeepcorporateandM&AexperiencefrompreviousCEOposi.onsandmul.na.onaldirectorships,webelieveheisanidealcandidatetofixtheCompany’sissuesandfilltheknowledgegapoftheBoard.

Mr.KovlerHasSignificantCharacterConcerns

Mr.JordanKovlerbringsthenecessarycorporategovernance,M&A,investorrela.onsandbusinessdevelopmentexper.se.WebelievehewillhelpensurethatRofin’scorporategovernancesignificantlyimproves,alongwiththeCompany’stransparency,investorrela.onsprogramandanypoten.alM&A.Hehasadvisedover50boardsofUSpubliclytradedcompaniesonawiderangeofissuesandchallengingthestatusquointhesesitua.onstoensuretheseboardsmadethebestdecisionsforitsholders.

WeRepackageROFIN’sAc.onsasourStrategy...

WebelieveROFINhasnotpresentedacomprehensivestrategytothepublic,neitherinitsinvestorpresenta.onsnorinitsquarterlyorannualreports.WebelieveRofinhasnotpresentedanyanalysistodemonstratehowtheirstrategywillcreatelong-termstockholdervalue.WehaveaclearstrategytofixRofin,whichwebelievehaspar.allybeenadoptedbyRofinazerweini.atedourdiscussionswiththemazerthefirstquarter2015.Webelievewepresentedourstrategyfirst,andthatRofinhasonlymadechangesasaresultofouradvocacy.WebelieveRofinhasmissedmanyopportuni.estochangethecompanyoverthepastcoupleofyears.

Mr.DanielSmoke’sLawsuit

Mr.Smokewasadefendantinasuitins*gatedbyhisformeremployer,JACHoldingEnterprises,Inc.etal(“JAC”). Thecasewasbeingli*gatedintheU.S.DistrictCourtfortheEasternDistrictofMichigan(Detroit),JACHoldingEnterprises,Inc.etalv.AtriumCapitalPartners,LLCetal.,case#2:2012cv15450.Thiscasearose fromallegedorganized fraudcarriedoutduring the saleof JACby thedefendants (includingMr. Smoke) to certainbuyers. It is alleged that“duringduediligence,certaindefendantsconspiredtoknowingly,inten*onallyandrecklesslymakefraudulentrepresenta*onsandstatementsandconcealmaterialinforma*onforthepurposeofinfla*ngJAC’sapparentvalue.”

§  Paragraph7ofthecomplaintstatesthat:

“DanielJ.SmokewastheChiefFinancialOfficerofJACun.lhewasterminatedforcauseonDecember21,2010.”

§  Paragraphs34and35ofthecomplaintfurtheralleges:

34.“………First,theyfraudulentlymanipulatedandomifednega.vefinancialdatathatshouldbehavebeenreflectedintheconsolidatedfinancialstatementsandotherduediligencematerialsprovidedtotheBuyers.Smoketookthelaboringoarincarryingoutthispartoftheschemeatthedirec.onoftheotherConspirators.

35.“Forexample,Smoke,attheinstruc.onofandwiththeknowledgeoftheotherConspirators,instructedemployeesatJACinanAugust27,2010e-mailmessageto“manufacture”earningswhenhesawthatJAC’sactualperformancewascominginfarlowerthantheConspiratorsneededtogettheirdesiredpriceforJAC.By“manufacture,”Smokemeantthathewanted–pursuanttotheConspirators’plan–JAC’semployeestomanipulatethecompany’sfinancialstomaskandconcealJAC’struefinancialcondi.on.Smoke,underthedirec.onofandwiththeknowledgeoftheotherConspirators,alsodirectedJACemployeestoignorenega.vefinancialinforma.onandwithholditfromJAC’sfinancialstatements.”

§  Further,atparagraph53,itisallegedthat:

“Oneofthemostblatantindica.onsoftheConspirators’overarchingschemethattheBuyersfoundisaneffortSmokemadetoconcealwhattheConspiratorshaddonebydele.ngincrimina.nge-mails.SmokewasreleasedfromJACalmostimmediatelyazerclosing.TheBuyersdiscoveredthatbeforeleaving,Smokeafemptedtopermanentlydeleteincrimina.ngemailMessages[…]ThereisnodoubtSmokedeletedthesee-mailsinaknowingandinten.onalefforttopreventtheBuyersfromseeinghiscommunica.onswiththeotherConspirators.Indeed,Smokedidnotmerelymovethee-mailstohis“Trash,”or“DeletedItems”folder;instead,hedouble-deletedthefilessotheycouldnotbeeasilyrestored.”

§  TheUnitedStatesDistrictCourtfortheEasternDistrictofMichiganmadethefollowingstatementinaFebruary10,2014opinionandorder:

“SmokewastheCFOofJACun.lhewasfiredonDecember21,2010.ItisreasonabletoinferthatasanofficerandemployeeofJAC,hestoodtogainfromthemisrepresenta.onsbypreservinghisownsalaryandposi.on.Thecomplaintalsoallegesthatwhenhewasdismissed,Smokedeletedthousandsofemailmessagesbetweenhimselfandotherdefendants,inordertoconcealtheircommunica.onsrela.ngtothefraudulentscheme.Moreover,SmokeallegedlyinstructedJACemployeesto“manufactureearnings”byusingthelaundrylistofsketchyaccoun.ngtechniquesdetailedinthecomplaintandbyomiMngahostofnega.veelementsfromthefinancialrecordsprovidedtothebuyers.WynnchurchchargesthatSmokewasinvolvedinandpersonallycarriedouteveryoneofthespecificincidentsofconcealmentandmisrepresenta.ondetailedinthecomplaint,exceptfortheissueoftheMazdatoolingcosts.-38-TheCourtfindsthatthecomplaintproperlypleadsclaimsunderthefederalsecuri.esstatutesandrules.”



Mr.GaryWillis…andMr.StephenFantone…haveapasthistoryofservingonnumerousboardstogether,…

§  Inaddi.ontoservingtogetherontheboardofdirectorsofRofin,Messrs.WillisandFantonehavealsoservedtogetherontheboardsofdirectorsofZygoCorpora.on(“Zygo”)andBenthosInc.(“Benthos”).Thechartbelow,whichisbasedoninforma.oncontainedinproxystatementsofZygo,BentosandtheCompany,detailstheyearsofserviceofMessrs.WillisandFantoneonthethreeboards.Mr.WillisalsoservedasCEOofZygo.

Mr.Willis Mr.Fantone

Rofin-Sinar 1996–present 2005-present

Zygo 2009–2014 2009-2014

Benthos 1998–2006 1995–2006

§  SilverArrowbelievesMessrs.WillisandFantone’s17yearsofcon.nuousoverlappingboardservicecouldbeviewedasafactorwhenconsideringwhetherRofin’sboardisabletoconsidernewapproaches.



WebelieveMr.FantoneDemonstratedAnotherReasonWhyThisBoardShouldNotBeEntrusted

Mr.Fantone,HeadoftheNomina*ngCommi_ee,interviewedoneoftheCompany’stwoChiefOpera*ngOfficers,Mr.Mar*nSeifert,in2013anditwasshockingtouswhatwassaid.Mr.SeifertisalsothePresidentofNuFern,acompanythatRofinpurchasedin2008.ThisconfirmedmanyofoursuspicionsonRofin’sopera*onsandimproperBoardoversight:

§  OnNufern’sopera.onsandintegra.onintoRofin-Sinar:“Nuferniss.llaveryindependentcompany.We’repartofamuchlargerteam.Butit’ss.llverymuchrunbyourownliflegroup.”

§  OnNepo.smintheworkplaceandNufern’sapproachtomarke.ng:“Well,I’mvery,veryfortunatethatImarriedmybestfriendandshe’salsomypartner.Nufernwouldn’tbeheretodayifshewasn’twithuseverydarnday.Sheactuallydoesthemarke.ngandallofthedesignworkofthecompany.”

§  Onhisgraspoffinance,askillthatisusefulforsomeoneservingasChiefOpera.ngOfficerofapubliclytradedcompany:“Thatisjustanareathatescapesme.NotonlydoInotunderstandthebasicconceptsoffinance,Ijustdon’thavethepa.encetoaddupacolumnof653numbersandgetitrightatthebofom.So,fromthelowestleveloffinancetothehighestleveloffinance,it’saspectacularsciencethatI’llneverunderstand.”

§  Ontheimportanceofagreementsandnego.a.onsinmajorprojectsand/orinvestments:Theexpansionthatwejustdid,wejustinvested$12millioninthat.Thelandlordstartedconstruc.ononahandshake.Itwasn’tun.ltheveryendthatwesaid,“Maybeweshouldputacontractinplacetocoverallthis,tomakesurethatit’sgood”.

Whatismoreshocking?

a)  TheHeadoftheNomina.ngCommifee(Mr.Fantone)conduc.ngtheinterviewdidn’teveractontheseunbelievablestatementsmadebyoneofhisexecu.ves.IsMr.Fantoneunawarethatthisisnotthewayapubliclytradedcompanyshouldberun?

b)  TheChiefOpera.ngOfficeroftheDefensebusinessadmitsthatNuferns.llhasn’tbeenintegrated,hehiredhiswifeforallmarke.nganddesign,headmitsnounderstandingofthebasicconceptsoffinanceanddoesn’tunderstandtheimportanceofsignedagreementsandpropernego.a.onstosafeguardstockholderinterests.

ITISASHAMEMR.FANTONEISNOTRUNNINGFORELECTIONTHISYEARANDTHATHEISTHEHEADOFTHENOMINATINGCOMMITTEE

Watchtheinterview:hVp://www.osa.org/en-us/corporate_gateway/events_programs/execu,ve_speaker_series/execu,ve_speaker_series_mar,n_seifert/



SilverArrowCapitalAdvisorsLLPΙ3MoreLondonRiverside,1stFloorΙLondonSE12REΙUnitedKingdomT:+44(0)2036372185ΙF:+44(0)2030148671Ιwww.silverarrowcapital.com

Documents

Fix Rofin: It’s .me for change to unlock long-term …...Fix Rofin: It’s .me for change to unlock long-term stockholder value. I. Rofin at a Glance p. 5 II. Our Proposals and