Three years plan 2015-2017

Three-Year Business Plan2015-2017

Headlines:actions: more product - plastic and advanced materials page 9 actions: more product - metal - (HSD) page 16actions: more product - bSuite (software) page 22actions: more product - Systems – cells page 25actions: more product - new glass & stone range page 32actions: more product - new glass & stone range page 32actions: more network - subsidiaries – trade channel page 36actions: more network - Brazil page 45actions: more network - China page 50actions: more network - India page 66actions: more network - marketing page 68actions: more discipline - orders & market share page 76actions: more discipline - financials page 79appendix: sales breakdown page 94appendix: sales breakdown page 94appendix: macro-economic and sector-specific forecast page 97

Biesse Group

Biesse Group is a global

Three-year plan

Biesse Group is a global leader in the technology for processing wood, glass, stone, plastic, advanced materials and metal.

Founded in Pesaro in 1969 by Giancarlo Selci, the company has been listed on the Stock Exchange

3

been listed on the Stock Exchange (STAR segment) since June 2001.

Innovation is our driving forceThree-year plan

Innovation is the driving force in the way we do business, continuously striving for excellence to support our customers’ competitiveness.

We innovate to produce the most widely-sold processing centres in the world.

We innovate to introduce new technology standards to the market.We innovate to design production lines and systems for large enterprises.systems for large enterprises.

We innovate to develop solutions and software programs to facilitate our customers’ day-to-day activities.

Innovation is hard-wired in our DNA. Past, present and future.

4

1 industrial group, 4 divisions and 8 production sites

more than 200 patents registered

32 branches and representative offices

InHow

Where

5

32 branches and representative offices300 agents/certified dealers

customers in 120 countries

around 2,880 employees throughout the world

WhereWith

We

History 1/3A perfect combination of innovation and Italian genius

Three-year plan

1969Biesse founded

in Pesaro, Italy,

to design, manufacture and

distribute woodworking

19801989

Product range expansion and

19901999

Expansion into foreign markets,

2001Listing on the Italian stock

exchange STAR segment

distribute woodworking

machines

expansion and diversification into

glass & stone

foreign markets, acquisitions, and Group structure rationalisation.

6

History 2/3Internationalisation and acquistion for growth

Three-year plan

20062007

Bre.Ma

is acquired

2008New plant in

Bangalore (India),

the first foreign production site

2009Opening of Biesse Schweiz in Lucern and Biesse Middle

East in Dubai

2011Biesse acquires:

VIET for calibration and sanding machines

Centre Gain Ltd Hong Kong

is acquiredKong

Korex Machinery Dongguan (China)

History 3/3International expansion and growth through acquisition

Three-year plan

2012New show room in

Codognè (Italy)

2013Launch bSolid: first

module of bSuite software package and

Airforce System for edgebanding

2014Acquisition of 100% share of Biesse HK

Dongguan

Establishment of Intermac Brazil

2015…

Group structureThree-year plan

9

In How Where With We

BiesseSince 1969Specialised in the woodworking

Three-year plan

woodworkingsegment. Solutionsfor joiners and largefurniture, windows, doors and woodbuilding componentsmanufacturers.

In recent yearsIn recent yearsSpecialised in plastics and advanced materials

10

Made In Biesse

IntermacSince 1987Specialised in the glassand stone processing

Three-year plan

and stone processing sector.Solutions for the flatglass and stoneprocessing industry and for the furniture, construction and automotive industry.

24/02/2015 11

TodayIs one of the mostprestigious brands in thissector.

Technological independenceMechatronics

Biesse Group directly designs

Three-year plan

Biesse Group directly designs and manufactures all high-tech components for its machines.

Thanks to a dedicated business unit specialised in Mechatronics, it manufactures key components to guarantee high performance and competitive advantage to its customers.

12

customers.

Cutting-edge

Diamut creates

Three-year plan

Diamut creates customised diamond and binder mixes - tools developed and field-tested on the basis of customers requirements.

Using high-tech tools, it is possible to process any

1313

possible to process any material, from stone through to concrete, ceramic, glass and man-made materials.

market shares

actions:

targetThree-year plan

growth excellence

actions:

more product

more network

more discipline

target target

14

efficiency

more discipline

target

More product

actionsThree-year plan

– plastic

15

– plastic

– metal (HSD)

– bSuite (software)

– Systems / cells (batch one lines- winstore range )

– new glass and stone range

more network

actionsThree-year plan

16

– subsidiaries & trade channel development, increased headcount for foreign subsidiaries (salespeople & engineers), enhanced training and expertise

– development of Latin America sales network /manufacturing (Brazil) and of Asia sales network

– development of overseas manufacturing (India and China)

– group marketing & communications

more discipline

actions

control non-strategic structural costs

pay-off for software upgrades (financial incentive to upgrade)

Three-year plan

incentive to upgrade)

increase operating margins, also taking advantage of current positive currency effects (weakening of the EURO)

tight control of operating net working capital

product reliability/quality as a key factor for the reduction of collection days (DSO ratio)

increase organic cashflow, reduce net debt and pay regular dividendsand pay regular dividends

financials

orders

market shares

17

actions: more product -plastics and advancedadvancedmaterials

2

plastics and advanced materialsassumptionsassumptions

•• LeveragingLeveraging Biesse CNC machine design knowBiesse CNC machine design know--howhow

• Leveraging Biesse sales network and reputation on the market

Three-year plan

• Leveraging Biesse sales network and reputation on the market

Target

• Penetrating the plastics and advanced materials sectors. Global market size estimated at 21 bn Euro.

• Cutting, milling and moulding machinery. Global market size estimated at 2,5 bn Euro.

19

estimated at 2,5 bn Euro.

Estimated turnover for the first three years:2015 turnover € 3,000,000

2016 turnover € 5,000,000

2017 turnover €10,000,000

Market breakdown

Three-year plan

foam

composites

20

technicals components

visual communications

composites

Plastics and advanced materialsThree-year plan

21

sectors:- technicals components- composites- visual communications

Plastics and advanced materials: CNC

Skill Plast FT

Three-year plan

Rover J Skill Plast FTRover Plast A

22

sectors:- foam- visual communications

sectors:- technicals components- visual communications

Plastics and advanced materials:CNC Rover B

Three-year plan

23

sectors:- technicals parts- composite

Plastics and advanced materials: water jet

Three-year plan

sectors:- technicals components- composites- foam- visual communications

24

actions: more product- metal (HSD)

325

metal (HSD)assumptions

•• Leveraging HSD knowLeveraging HSD know--how and excellence in designing electrospindles and how and excellence in designing electrospindles and electroheads for machine tools electroheads for machine tools (metal, alloy and composite materials)(metal, alloy and composite materials)

• Leveraging HSD sales network and market reputation

Three-year plan

• Leveraging HSD sales network and market reputation

target

• Market share increase - growth in the metal sector (in 2014 , total turnover of 2.5 m Euro with limited product range offering)

• Estimated size of targetable market 120 m Euro.

• Target market share (wood, plastic, aluminium, composite materials 60%)

• Estimate size of targetable market 280 m Euro.

26

• Estimate size of targetable market 280 m Euro.

• HSD share

2015 turnover € 5,600,000 (2% of metal market)



new metal markets:- automotive, aerospace and medical

Three-year plan

27

tapping centre machines

- automotive- aerospace- energy- marine

metal (HSD) Three-year plan

28

Gantry-type high-speed milling machines:metal (HSD) Three-year plan

- automotive- aerospace- energy- marine

29

HSD: new plant in Gradara-Pesaro (August 2015), to increase manufacturing footprint from 4,000 to 8,000 m2

Three-year plan

actions: more product- bSuite (software)

4

• bSolid Biesse CAD/CAM

• bEdge edgebanding “in a click”

bSuiteThree-year plan

• bEdge edgebanding “in a click”

• bWindows simplified frame planning

• bNest complete nesting control

• bProcess controlled production

• bCabinet integrated furniture planning

• bControl “easy” machine planning• bControl “easy” machine planning

• bCloud e bPad “easy” machine planning

• bApp the new “industry 4.0” app

• bDoors glass door planning

• bTop simplified kitchen top management 32

bSuite

bSolid bEdge bWindows bNest

Three-year plan

bProcess bCabinet bControl bCloud bDoors

33

actions: more productSystems – cells

batch one linesnext stepMDS - winstore range

5

Systems

target: target:

•• order managementorder management

Three-year plan

2013 “2013 “turnkey projects ” turnkey projects ” order intake 24 Euro m order intake 24 Euro m

•• easy furniture assembly (new connections)easy furniture assembly (new connections)•• batchbatch oneone lineslines•• newnew lineline forfor drillingdrilling and and insertinginserting

•• order managementorder management

•• Lean Production Lean Production (Production Lead Time)(Production Lead Time)

•• inventory reduction inventory reduction (cash flow growth)(cash flow growth)

2013 “2013 “turnkey projects ” turnkey projects ” order intake 24 Euro m order intake 24 Euro m

2014 “turnkey” projects 2014 “turnkey” projects ” ” order intake 36 Euro m with 40 orders for batch one lines order intake 36 Euro m with 40 orders for batch one lines (average order value 600k Euro)(average order value 600k Euro)

2015 60 orders for batch one lines with an estimated budget of 40 Euro 2015 60 orders for batch one lines with an estimated budget of 40 Euro mm

35

Systems

6000

9000CELLS OR INTEGRATED PLANTS- CUSTOM

Continuous and integrated work cellsService automation

low sizeproduction

medium-large size productionlarge size

production

Three-year plan

150

volu

me

s

600

1000

2000

6000Service automation

BATCH ONEPROCESSES

Plans, lines and integrated processes, process automation

FLEXIBLE PROCESSES

Plans, lines and integrated processes, process automation

growing demand

MACHININGCENTRES,

Automated or semi-automated machines

36

150

size

1-30 31-150 151-500 >500

growing demand

Systems

BATCH CUTTINGBATCH EDGEBANDINGBATCHDRILLING

Three-year plan

37

FLEXIBLECUTTING

FLEXIBLE EDGEBANDING

FLEXIBLE DRILLING

DEVELOPMENT OF PRODUCTS FOR FLEXIBLE PROCESSES

Systems: next step Three-year plan

Systems: MDS Three-year plan

Systems: handling Three-year plan

actions: more productnew glass & stone range

641

strategia: prodotti

• completion of vertical machine range

• development of turnkey projects for cutting, laminating

new glass & stone rangeThree-year plan

• development of turnkey projects for cutting, laminating and floating

• new product range for the most advanced turnkey plants in terms of productivity & automation

• CNC range update

• new design + new 3D bSolid software • new design + new 3D bSolid software

• extention of the stone range (machines for roughing stone blocks and cutting stone slabs)

42

glass & stoneThree-year plan

• increase the Korex (China) productionof cutting machines. Target emerging markets

• expand parallel distribution network for water-jet systems in the metal processing sectorsystems in the metal processing sector

• opportunity to incentivate Brazilian production

43

• extend bSolid solutions for glass & stone machines: 3D processing parametric software

glass & stoneThree-year plan

• “turnkey factory” : first experiences in the supply of fully integrated turkey projects

• strong partnerships with universities: • Ferrara University and Milan Polytechnic

44

actions: more networksubsidiaries – trade channel

manufacturing initiatives to support the sales network

7

from tri-band offer to dual strategy

actions / strategyThree-year plan

turnkey projects

stand-alone machines

46

stand-alone machines

hig

h

integrated cellsstand alone machines

actions /strategy

from tri-band offer to dual strategyThree-year plan

“small” customers

“medium” customers

“large”

Ne

two

rk

Bie

sse

in a

ny

neg

oti

ati

on

”

turnkey projects

47

“large” customers

Complexitylow high

“Bie

sse

low

Biesse target

export share of consolidated revenues€/mln

100,0%500

Three-year plan

88%

76%

82%

86%

89% 89% 90%

75,0%

300

400

48

50,0%200

2008 2009 2010 2011 2012 2013 2014

consolidated export incidence

Invest in human resources and capabilities as growth drivers

subsidiaries: guidelinesThree-year plan

• Invest in human resources and capabilities as growth drivers (network & technology)

• Transform the management approach from EBIT-driven to EBIT-consciuos >>> focus on market share and growth

• Improve after-sales service quality to gain customers’ trust• Improve after-sales service quality to gain customers’ trust

• Enhance sales and marketing integration

49

• North America: new showroom & service centre in Los Angeles (CA) – April 2015

subsidiaries: local initiatives€/mln

Three-year plan

North America: new showroom & service centre in Los Angeles (CA) – April 2015

• North America: new showroom & service centre in Charlotte (NC) -August 2015

• China: double manufacturing capacity in Dongguan – March 2015

• Malaysia: new subsidiary with a dedicated, large showroom – April • Malaysia: new subsidiary with a dedicated, large showroom – April 2015

50

• Australia: larger showroom in Sydney – dedicated Product Specialist

€/mln

Three-year plan

subsidiaries: local initiatives

• Australia: larger showroom in Sydney – dedicated Product Specialist

• India: expand the sale network

• France: complete the hiring plan and organise more “in-house” events

• U.K.: consolidate T1 and T2 share and expand territory network by increasing the sales force (with specific focus on T3 customers)increasing the sales force (with specific focus on T3 customers)

51

trade channel: guidelines€/mln

• Consolidate market share for cutting, edgebanding and drilling for the top ofthe market range

Three-year plan

the market range

• Hire specialised staff and dedicated (resident) key account managers todevelop line and cell sales in particular

• Focus on “growth” customers target group in the medium-high rangesegment, with a focus on “productiong upgrade”

• Strenghten the dealer network for the “stand-alone machine range”

52

• Strenghten the dealer network for the “stand-alone machine range”(salespeople, engineers, service engineers) to increase the integration with“made in Biesse” products manufactured in China and India

• Monitor discount policies to safeguard sales margin, increasing theperception of the “business offer system” and preventing price conflicts

trade channel: key guidelines€/mln

Three-year plan

• Increase potential customer mapping to enhance knowledge base andgeographic cover, using advanced customer relationship managementtools (salesforce,com)tools (salesforce,com)

• Participate in a more proactive way in the organisation of “open house”events with our distributors

• Embrace plastics and composite materials to seize opportunities in asector with similar manufacturing technology (processing and cuttingcentres)

• Improve collaboration and schedule support and training activities (service)with the sales force and direct distribution network, encouraging service

53

Improve collaboration and schedule support and training activities (service)with the sales force and direct distribution network, encouraging servicemanagers to become more direcly involved in the relationship with dealers

• Maximize the benefits of the new showroom (Pesaro), promoting “inhouse” Tech Tours as a further enhancement of the “Biesse Experience”

actions: more network Brazil

854

BrazilThree-year plan

• Latin America is the only geographic area where Biesse has no manufacturing sites (compared to its main competitors)(compared to its main competitors)

• Competing on product cost by circumventing the “import tax” hurdle

• Reaching new target customers (T2 – T3)also by gaining access to local medium-term loans(FINAME)

• Developing own direct sales and

55

• Developing own direct sales and distribution network

BrazilThree-year plan

• prudent approach to business development in Latin America –investment timing – in consideration of the cyclicality timing – in consideration of the cyclicality of the Brazilian economy

• “green field” scenario evaluation –partnership with a local player

• reduction of initial investment/low capex

• greater synergies between the “wood” and the “glass-stone” sectors

56

and the “glass-stone” sectors

Brazil - woodThree-year plan

• local manufacturing of entry-level machines with advantages in terms of:

strenghtening the offer system in the strenghtening the offer system in the management of the distribution network market share increase (current share 16% -target share 25% by 2018)

• … as a basis for the complementary import of high-tech machines from Italy

• focus on key accounts with dedicated resident area manager

57

resident area manager

• service strenghtening with resident service engineers

Brazil – glass and stoneThree-year plan

• Local manufacturing of entry-level, machines

• Leveraging of state incentives for Brazilian production (land and buildings at favourable terms, equipment loans, etc/)

• Importing high-tech machines from Italy

• Leveraging the temper over distribution network

58

actions: more networkChina

959

China: target

increasing our market share in the

Three-year plan

• increasing our market share in the largest market in terms of size and growth potential

• restructuring of Chinese operations after acquiring 100% control

60

China: actions

•streamline company and business

Three-year plan

•streamline company and business organisation

• new, dedicated local manufacturing facilities for wood – glass/stone

•expand sales network

develop after-sales service•develop after-sales service

61

China: streamlining our organisationThree-year plan

From September 2014, having acquired full control over all Chinese activities, Biesse Group wants to focus only on 2 legal entities:

Manufacturing – KOREX Dongguan

1) streamline the structure of the legal entity and its activities in China;

2) progressively introduce Biesse Group manufacturing standards;

3) new investments (ERP, CNC metal

Sales – Biesse Trading Shanghai1) further develop sales (opening of new

branches in China);

2) logistics Head Quarter in Dongguan (warehouse, spare parts, showroom etc.)

3) regroup the Wood and Glass/Stone business in the same legal entity

62

3) new investments (ERP, CNC metal cutting etc);

4) speed up the introduction of a new product portfolio (high tech);

split/focus 2 teams to develop product portfolio and sales network at the same time

BS HKBS HKHK BS ASIABS ASIA

Current state

BS HKBS HKHK

Future state


CentreGain

CentreGain

PRC PRC

CentreGain

CentreGain

63

KorexKorex BTSBTS IntermacIntermac

Wood G&S

KorexKorex BTSBTS IntermacIntermac

ProductionWood e

G&S

SaleWood e

G&S

Streamlining our “business model” in China also entails closing Centre Gain (HK) and Intermac GZ

KorexOverseas Chinese market

Three-year plan

China: streamlining our organisation

Overseas Chinese market

KorexProduction of Wood and Glass & Stone Machines

KorexProduction of Wood and Glass & Stone Machines

BTSLocal Trading, After sales

service, Spare parts

BTSLocal Trading, After sales

service, Spare parts

Import of Components, RM

Import of Components, RM

Local SuppliersLocal Suppliers

OverseasCustomers (machines

and Components)

OverseasCustomers (machines

and Components)

Note: Inbound

Outbound

BTS

Three-year plan


China: streamlining our organisation


KorexProduction of Wood and Glass & Stone

Machines

KorexProduction of Wood and Glass & Stone

Machines

BTSLocal Trading, After sales service, Spare

parts

BTSLocal Trading, After sales service, Spare

parts

Imported Machines and Spare Parts(Biesse Spa, Bre,Ma,, Viet,

BSMNFG)

Imported Machines and Spare Parts(Biesse Spa, Bre,Ma,, Viet,

BSMNFG)

Wood&

Final Chinese Customers

Final Chinese Customers

Chinese dealersChinese dealers

Note: Inbound

Outbound

&Glass Stone

New HQ in Dongguan


Establishment of an Office on 2° floor ofthe Office Building to allow Sales (Wood eG&S) and Service to operate in Dongguan

66

New showroom in Dongguan


DongguanOpening

June

Inside Biesse China

End of May

Size

864 sm – Intermac & Wood machines

67

Wood machines

“housing is no longer a welfare item, it’s now a commodity” … (PRC

Government slogan)

Wood market analysisThree-year plan

Total furniture sector value 5,600 RMB/m (750 €/m)

China-Italy Chamber of Commerce

Over 62% of total production consists of woodfurniture; 16.4% of metal furniture and the restof furniture in other materials

The most important regions are:Guangdong, Shandong, Zhenjiang, Henan,Liaoning, Sichuan, Fujian, Shanghai, Jiangsu,Hunan

68

Biesse supports Chinese localmanufacturers to improve the qualityand design of their products

Main Competitor Extimated Turnover

100 €/mln

Estimated value of Biesse products market:

300 €/m


34%

7%

10%

30%

HomagNanxingBiesseSCMExitechRest of the market

100 €/mln

40 €/mln

30 €/mln

20 €/mln

Others 90 €/mln

Estimated market share

69

14%5%

7%Rest of the marketOthers 90 €/mln

16 €/mln

… substantial investment in sales people and engineers in 2015 to increase market share

G&S : market value estimated at32 €/mln

MainCompetitor

N° MachinesSold

ExtimatedTurnover

Yinrui 200 8.4 €/mln


26%

12%

11%

10% 8%

YinruiBotteroIntermacJinglingHailining

Yinrui 200 8.4 €/mln

* 120 5 €/mln

Jingling 100 4.2 €/mln

Hailining 90 3.8 €/mln

Pujinli 80 3.4 €/mln

Estimated market shares

70

16%4%

13%

HailiningPujinliPujinli 80 3.4 €/mln

Intermac 30 1.3 €/mln

Other 140 5.8 €/mln

* Cutting flat glass

turnkey

CuttingEdge-bandingCNC

integrated

local manufacturing: Wood

IMPORTED

Three-year plan

turnkey projects

Rover Gold

Stream

Sektor

integratedCells IMPORTED

71

stand-alone

Rover Gold Sektor

Sliding TableSpark Akron

Jade

CuttingCNC

turnkey integrated

local manufacturing Glass

IMPORTED

Three-year plan

stand-

turnkeyprojects

Master 35-45

integratedCells IMPORTED

72

stand-alone

Genius 37-61Master 23

Master 35-45

Master 34

Belted Sheet Transfer

North EastLocation:

Shenyang

Status

2017

expansion of local sales networkThree-year plan

2017

South

WestLocation:

Chengdu

Status

2017

NorthLocation:

Beijing

Status

2016

East Location:

Shanghai main officeStatus:

Active

opening of new branches73

SouthLocation:

Dongguan branch

Status:

In process, ready in March

2015

Active

2015-2019 consolidated revenue

51,9

48,0

Local

Export

Piano triennale

€/mln

26,9

37,140,1

5,3

11,0

11,8

34,0

39,3

29,1

48,0

2,1

22,01,6

17,32,2

74

CAGR 2015-2019: 23,9%

26,9

20,415,1

201920172016 201820152014

actions: more network India

1075

India production Piano triennale

main production site in Bangalore

76

800 act max production limit (*)

manufacturing India Three-year plan

• Average growth rate 2015 2016 2017 : +15%

Makali Project can reach max. production of up to 1,500 no.s/year (*)

77

• Makali Project can reach max. production of up to 1,500 no.s/year (*)

macro-forecasts (India)

• CAGR 2015–2017 housing 7%

• CAGR 2015– 2017 furniture 5%

• CAGR 2015– 2017 GDP 6.5%

actions: more network marketing

1178

corporate identity definition of new, cohesive group image

rationalisation of brand architecture

Three-year plan

rationalisation of brand architecture

implementation in websites, events and exhibitions, brochures, showrooms, etc.

79

Catalogo di product

Comunicsharecorporate ed eventi

Sito webProduct catalogue

Corporate and eventcommunications

Website

mmain objectivesain objectivesA new Business Centre in 54 days!A new Business Centre in 54 days!

Three-year plan

a new 5,000 sm concept space entireley dedicated to customers and designed to embody the spirit of Biesse Group’s innovation and its identity, thanks to the use of materials such as wood and glass: a visual reminder of the application sectors for the Group’s solutions

80

CURRENT websitesPREVIOUS websitesThree-year plan

81

RUSSIAITALY

Three-year plan

82

key international events and exhibitions

Three-year plan

83

corporate communications & rebranding

• completion of the rebranding process

2015 new projects

Three-year plan

• completion of the rebranding process

• Service & Spare Parts promotional plan

• case history (Biesse, Intermac, Diamut) to promote the brand through customers

• new image for (Intermac) Headquarters showroom and subsidiaries

• financial communications

• institutional communications (presentation, Company profile update, etc.)

• video

84

product – events and exhibitions –web & digital

• completion of product catalogues (Biesse, Intermac, Diamut, Plastica)

• sales e-book

2015 new projects

Three-year plan

• sales e-book

• video

• plastic promotional plan

• customised newsletters

• key exhibitions: Interzum (China), Vitrum (Milan), Ligna (Hanover), AWFS Las Vegas (USA), Plast (Milan)

• open-house events (Biesse, Intermac) at headquarters and subsidiaries

• tech tour and customer visits in showrooms

• completion of websites (Biesse, Intermac, Diamut)• completion of websites (Biesse, Intermac, Diamut)

• publication of subsidiary websites (biesse,com, Intermac,com)

• advertising on portals

• dedicated plastics section

• monitoring of site ranking

• integrated newsletter with Salesforce CRM

• social networks (Linkedin, Youtube, Facebook, Twitter)

• Service and parts website 85

actions: more discipline orders – market share

1286

Group order intake & backlog

335,1323,2

302,3312,7

375,6

350

400

€/mln

Three-year plan

205,9

278,4

302,3312,7

64,576,8

90,3 81,9 77,7

116,3

100

150

200

250

300

87

64,5 5876,8 81,9 77,7

0

50

2008 2009 2010 2011 2012 2013 2014

orders intake backlog

•2014: Group order intake vs 2013 +20.1%•2014 :Group backlog December 2014 vs December 2013 + 49.7%

market sharewood (industrial)size € 2.3 bn.

20%

32% Bottero

Glaston

glasssize € 235 m

Three-year plan

28%

6%13%

53%Homag

SCM

Biesse

Rest of the market

20%

5%

25%

18%

Glaston

Biesse

CMS

Rest of the market

KESSLER

WEISS (Siemens group)

mechatronicssize € 400 m

88

10%

12%

8%

21%

4%

45%

CMS

Breton

Thibaut

Biesse

Denver

Rest of the market

stoneSize € 50 m

36%

8%7%

17%

7%

7%

5%3%4% 6%

WEISS (Siemens group)

FISHER PRECISE

HSD

STEP TEC

IBAG

GMN

OMLAT

JAEGER

Rest of the market

actions: more discipline financials

1389

consolidated group turnover

478514

540

500

600

€/mln

Three-year plan

427

478

200

300

400

500

90

0

100

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

CAGR 2015 -2017: 8,1%

€/mln 2013 2014e 2015e 2016e 2017e

ricavi netti 378,4 427,3 478,2 514,1 540,1

Consolidated P&LPiano triennale

ricavi netti 378,4 427,3 478,2 514,1 540,1

costo del venduto

156,5 170,7 187,7 201,5 210,5

costo del lavoro

112,7 127,2 142,0 151,0 158,6

overhead 81,4 89,8 97,8 99,4 101,9

EBITDA 30,9 41,8 52,8 63,7 70,7

EBIT* 15,1 26,5 36,0 47,0 54,0

91

*before non-recurring items

EBIT bridge 2014 - 2017 €/mln

Three-year plan

112,8

39,8

31,5

54,0

14,0

26,5

92

26,5

∆ CoGS ebit 2017e∆ Sale ∆ HRebit 2014e* ∆ Other

*before non-recurring items

€/m 2013 2014e 2015e 2016e 2017e

operating net working capitalThree-year plan

% inventoryover net sales

86.322.8%

98.823.1%

107.022.4%

112.021.8%

116.021.5%

% trade receivablesover net sales

76.220.1%

76.918.0%

88.018.4%

95.018.5%

100.018.5%

% trade payables

111.129.4%

121.728.5%

134.028.0%

140.027.2%

145.026.8%payables

over net sales29.4% 28.5% 28.0% 27.2% 26.8%

% operating net working capitalover net sales

51.413.6%

54.012.6%

61.012.8%

67.013.0%

71.013.1%

93

historical low(% over sales)

€/mln 2013 2014e 2015e 2016e 2017e

% gross cashflow Over net sales

52.113.8%

38.49.0%

32.36.8%

41.58.1%

48.69.0%

cashflow – net debtThree-year plan

% investmentsOver net sales

-19.95.2%

-20.94.9%

-22.74.7%

-15.43.0%

-15.42.9%

% free cashflowOver net sales

32.38.5%

17.54.1%

9.62.0%

26.15.1%

33.26.1%

proposed dividend -4.8 -9.80.36 per share

-9.80.36 per share

-9.80.36 per share

delta net debt 12.7 -0.2 16.3 23.4

net debt (net financial position) -23.9 -11.2 -11.4 +4.9 +28.2

94

added value

36,9%37,9%

39,5%40,7% 41,8%

42,5%

40%

45%250 value added value added %added value

Three-year plan

added value

31,5%

37,7%35,5%

36,9%

15%

20%

25%

30%

35%

100

150

200

95

0%

5%

10%

0

50

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

ebitda

9,8%

11,0%

12,4%

13,1%

12%

14%

70

80

Three-year plan

4,8%

5,8%

6,5%

8,2%

9,8%

0%

2%

4%

6%

8%

10%

10

20

30

40

50

60

96

-3,1%

-6%

-4%

-2%

-20

-10

0

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

EBITDA EBITDA margin

ebit€/MIL

6,2%

7,5%9,1%

10,0%

7%

12%

45

65

Three-year plan

0,0%

1,5%0,1%

4,0%

6,2%

-8%

-3%

2%

7%

-15

5

25

45

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

97

-12,3%

-18%

-13%

-55

-35

EBIT EBIT margin

net debt€/MIL

Three-year plan

28,2

10

20

30

-18,9

-23,9

-11,2 -11,4

4,9

-30

-20

-10

0

10

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

98

-32,7

-50,4

-56,2-60

-50

-40

labour cost€/MIL

10%

-20

0

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

Three-year plan

-20%

-5%

-120

-100

-80

-60

-40

-20

99

-34,6%

-32,9%

-29,7%-30,4%

-29,8% -29,8% -29,7% -29,4% -29,4%

-35%

-20%

-180

-160

-140

-120

labour cost

labour cost %

2014 2013 2012 2011 2010

manufacturing%

1,20142%

1,17544%

1,26545%

1,25046%

96541%

breakdown of Group employeesThree-year plan

service & after-sales%

62822%

61323%

57421%

57721%

56824%

R&D%

36113%

32112%

33812%

31612%

29312%

sales & marketing%

43915%

35113%

36413%

36113%

34014%

g & a%

2529%

2359%

2429%

2339%

2029%

Italy 1,605 1,547 1,646 1,656 1660Italy%

1,60556%

1,54757%

1,64659%

1,65661%

166070%

outside Italy%

1,27644%

1,14843%

1,13641%

1,08139%

70830%

TOTAL 2,881 2,695 2,782 2,737 2,368100

total capex€/MIL

-1%

0%0

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

Three-year plan

-5,4% -5,0%

-6,2% -6,3%-5,9%

-5,6%

-3,8% -3,6%

-7%

-6%

-5%

-4%

-3%

-2%

-1%

-20

-15

-10

-5

101

-7,1%

-10%

-9%

-8%

-7%

-30

-25

-20

total capex total capex %

operating net working capital€/MIL

25%

30%

90

100

Three-year plan

12,6% 12,8% 13,0% 13,1%

10%

15%

20%

25%

30

40

50

60

70

80

102

0%

5%

0

10

20

30

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

operating net working capital o.n.w.c. margin

receivables – payables - inventories€/MIL

28,5%30%

35%

90

100

Three-year plan

18,0% 18,4% 18,5% 18,5%

28,5%28,0%

27,2% 26,8%

23,1%

22,4%21,8% 21,5%

15%

20%

25%

30%

30

40

50

60

70

80

103

0%

5%

10%

0

10

20

30

2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

operating net working capital trade receivables margin trade payables margin inventories margin

appendixsales breakdown

14104

Biesse: breakdown of Group sales bycountry2014 2013

Three-year plan

%10,4

29,2

19,6

14,1

19,9

6,8Italy

Western E.

Eastern E.

U.S.A. - Canada

Asia Pacific

Rest of the W.

2014

10,9

26,6

18,8

13,5

20,7

9,5Italy

Western E.

Eastern E.

U.S.A. - Canada

Asia Pacific

Rest of the W.

2013%

1056,1

1,1

3,4

2,8

7,3

1,7

4,4Russia

Brazil

China

India

2014

2013

2014 B,R,I,C, 13,4%2013 B,R,I,C, 17,7%

Biesse : Group sales breakdown by division

Three-year plan

%

72,4015,50

14,80

2,304,10 -9,10

Wood

Glass - Stone

Mechatronics

Tooling

2014

14,1

2,34

-7,9Wood

Glass - Stone

Mechatronics

Tooling

2013%

106

72,4015,50Components

Adjustments

70,716,8Components

Adjustments

appendixmacro-economic andsector-specific forecastssector-specific forecasts

15

6,0%

7,0%

World GDP Three-year plan

5,4%

4,1%

3,4% 3,4% 3,3%

3,8%4,0% 4,0% 4,0% 4,0%

2,0%

3,0%

4,0%

5,0%

6,0%

108

0,0%

1,0%

2010 2011 2012 2013 2014e 2015e 2016e 2017e 2018e 2019e

International Monetary Found | October 2014

World GDP: by country

World GDP growth forecast: 2015-2019 +4%

Three-year plan

Legend

Gdp > 0 <

Gdp > 2 < 3

Gdp > 3

2,9%

1,6%

1,6%

6,7%

4,6%

6,6%

Gdp > 3

Source:

International Monetary Found Oct 2014

High growth areas

Medium growth areas

Low growth areas

109

2,5%

3%

Three-year plan

main markets: housing & main markets: housing & furniturefurniture

U.S.A 15%China 37%

68 170Italy 2,4%

11

Germany 5,2%

24

Brazil 2%

global furniture comsumption estimate for 2015: +3.3%

Source: CSIL Outlook 2014

Global furniture consumption: (size) USD 462 bn; +3.3%

2015 USD bn

2014 USD bn

Brazil 2%

9,3

110110

25

15,0

Furniture 2015-2017 +3.7%

key markets: housing -furniture

Three-year plan

-5

5

15

25

0,0

5,0

10,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

Housing 2015-2017 +4,3%

Consolidated sales 2015-2017 +8.1%

-45

-35

-25

-15

-15,0

-10,0

-5,0

GDP

Housing

Furniture

consolidated sales (scala dx)111

fonti utilizzate: CSIL furniture demand (indice mondiale) - CRESME /SIMCO GDP and new housing (indice mondiale)

World GDP forecast 2015-2017: +4%

Δ % y/y

15,0

key markets: housing -furniture

Three-year plan

historical beta average 2.6

-5

5

15

25

0,0

5,0

10,0

15,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

historical beta average 2.6

-45

-35

-25

-15

-15,0

-10,0

-5,0

historical beta average

media housing & furniture

consolidated sales

112

Δ % y/y

key markets: housing - furniture

Three-year plan

4% 2.64%*Housing & furniture

(outlook 2015-2017)

2.65

historical beta average

X

10.6%

113

* global “furniture” (2015-2017): average +3.7%

* global “new residential” (2015-2017): average +4.3%

furniture & housing (2015-2017): average +4%

10.6%growth rate

Three-year plan

key markets: furniture

home

86% 86%

office

85%85%85%

84%84%84%84%84%

84%

114

2014e

other

2013201220112010200920082007200620052004

Three-year plan

key markets: furniture

200,0

300,0

400,0

500,0

200,0

300,0

400,0

500,0

115

0,0

100,0

0,0

100,0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

Furniture consolidated sales

UCIMU (Italy)

Ucimu: press release of 27 january 2015

Three-year plan

Ucimu: press release of 27 january 2015

…on a yearly basis, the order intake index increased by14.7% thanks to the positive impact of export orders…,,”fivequarters of growth bode well for the immediate future,particularly in view of the forthcoming EMO exhibition in Milan(hosted in Italy every six years), and domestic demand seemsto be showing some green shoots”…, as always, the

116

to be showing some green shoots”…, as always, theimprovement of the financial environment or special laws(e.g. the Sabatini Law) can support a recovery in consumerspending for durable goods…,

Three-year plan

ACIMALL (Italy)

Acimall: press release of 3 february 2015

• “…order intake for 2014 is +19.7% over the previousyear, with a growing and important share of internaldemand (+24.7%)…

• …expectations for 2015 are moderately positive both fororder intake and employment levels, even if visibility is

Acimall: press release of 3 february 2015

117

order intake and employment levels, even if visibility isstill limited…”

Three-year plan

+ 14%Woodworking

VDMA (Germany)

production of woodworking + 14%Woodworking

machineryproduction of woodworking machinery +14% (2014 vs 2013)

forecast (woodworking) 2015: +3%

VDMA global index:

118

VDMA global index: + 2% (2014 vs 2013)

Forecast (global index) 2015: +2%

wood: production by countryThree-year plan

15%

5%

4%

4%

3%

3%2%

20%

Italy Germany

China USA

Austria Japan

Taiwan Turkey

Canada Spain

119

25%

13%

6% Others

source: VDMA 2015 report

This presentation has been prepared by Biesse S.p.A. for information purposesonly and for use in presentations of the Group’s results and strategies.

For further details on the Biesse S.p.A.. reference should be made to publiclyavailable information. including the Quarterly Reports, the Half Annual Report,the Annual Reports and the Three Years Business Plan.

disclaimer

the Annual Reports and the Three Years Business Plan.

Statements contained in this presentation, particularly the ones regarding anyBiesse S.p.A. possible or assumed future performance, (business plan) are ormay be forward looking statements and in this respect they involve some risksand uncertainties.

Any reference to past performance of the Biesse S.p.A. shall not be taken as anindication of future performance.

This document does not constitute an offer or invitation to purchase or

biesse,com

This document does not constitute an offer or invitation to purchase orsubscribe for any shares and no part of it shall form the basis of or be reliedupon in connection with any contract or commitment whatsoever.

By attending the presentation you agree to be bound by the foregoing terms.

biesse,com

Documents

Three years plan 2015-2017