Three-Year Business Plan

2015-2017
Headlines:
actions: more product - plastic and advanced materials page 9
actions: more product - metal - (HSD) page 16
actions: more product - bSuite (software) page 22
actions: more product - Systems – cells page 25
actions: more product - new glass & stone range page 32
actions: more network - subsidiaries – trade channel page 36
actions: more network - Brazil page 45
actions: more network - China page 50
actions: more network - India page 66
actions: more network - marketing page 68
actions: more discipline - orders & market share page 76
actions: more discipline - financials page 79
appendix: sales breakdown page 94
appendix: macro-economic and sector-specific forecast page 97
 Three-year plan

Biesse Group

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
(STAR segment) since June 2001.

3
 Three-year plan

Innovation is our driving force

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.

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
 In
1 industrial group, 4 divisions and
8 production sites

How
more than 200 patents registered

Where
32 branches and representative offices
300 agents/certified dealers

With
customers in
120 countries

We
around 2,880 employees
throughout the world 5
 Three-year plan

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

1969 1980 1990 2001

1989 1999
Biesse founded Listing on the
in Pesaro, Italy, Italian stock
exchange STAR
to design,
segment
manufacture and Product range Expansion into
distribute expansion and foreign markets,
woodworking diversification into acquisitions, and
machines glass & stone Group structure
rationalisation.

6
 Three-year plan

History 2/3
Internationalisation and acquistion for growth

2006 2008 2009 2011

2007
New plant in Opening of Biesse Biesse acquires:
Bangalore (India), Schweiz in Lucern VIET for calibration
the first foreign and Biesse Middle and sanding machines
production site East in Dubai Centre Gain Ltd Hong
Bre.Ma
Kong
is acquired
Korex Machinery
Dongguan (China)
 Three-year plan

History 3/3
International expansion and growth through acquisition

2012 2013 2014 2015

New show room in Launch bSolid: first Acquisition of 100% …
Codognè (Italy) module of bSuite share of Biesse HK
software package and Dongguan
Airforce System for Establishment of
edgebanding Intermac Brazil
 Three-year plan

Group structure

9
 Three-year
In How Where With Weplan

Biesse
Since 1969
Specialised in the
woodworking
segment. Solutions
for joiners and large
furniture, windows,
doors and wood
building
components
manufacturers.

In recent years
Specialised in
plastics and
advanced materials

10
Made In Biesse

Three-year plan

Intermac
Since 1987
Specialised in the glass
and stone processing
sector.
Solutions for the flat
glass and stone
processing industry and
for the furniture,
construction and
automotive industry.

Today
Is one of the most
prestigious brands in this
sector.

24/02/2015 11
 Three-year plan

Technological independence
Mechatronics

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
 Three-year plan

Cutting-edge

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

13
 Three-year plan
target
market
shares

actions:

target more product target

growth excellence
more network
more discipline
target

efficiency

14
actions
Three-year plan

More product

– plastic
– metal (HSD)
– bSuite (software)
– Systems / cells (batch one lines- winstore
range )
– new glass and stone range
15
actions
Three-year plan

more network

– 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)
16
– group marketing & communications
actions
Three-year plan

more discipline
 control non-strategic structural costs
 pay-off for software upgrades (financial
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 dividends

financials
orders
market shares

17
actions: more product -
plastics and
advanced
materials

2
 Three-year plan

plastics and advanced materials

assumptions
• Leveraging Biesse CNC machine design know-
know-how
• 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.
Estimated turnover for the first three years:
2015 turnover € 3,000,000
2016 turnover € 5,000,000
2017 turnover €10,000,000
19
Market Three-year plan

breakdown

foam

composites
technicals components

visual communications
20
 Plastics and advanced materials
Three-year plan

sectors:
- technicals components
- composites
- visual communications

21
 Three-year plan

Plastics and advanced materials: CNC

Rover J Skill Plast FT
Rover Plast A

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

22
 Three-year plan

Plastics and advanced materials:

CNC Rover B

sectors:
- technicals parts
- composite

23
 Three-year plan

Plastics and advanced materials:

water jet

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

24
actions: more product
- metal (HSD)

3 25
 metal (HSD)
Three-year plan

assumptions
• Leveraging HSD know-
know-how and excellence in designing electrospindles and
electroheads for machine tools (metal, alloy and composite materials)
• 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.
• HSD share
2015 turnover € 5,600,000 (2% of metal market)
2016 turnover € 8,400,000 (3% of metal market)
2017 turnover € 11,200,000 (4% of metal market)

26
new metal markets: Three-year plan

- automotive, aerospace and medical

27
metal (HSD) Three-year plan

- automotive
- aerospace
tapping centre machines - energy
- marine

28
metal (HSD) Three-year plan

Gantry-type high-speed milling machines:

- automotive
- aerospace
- energy
- marine

29
 Three-year plan

HSD: new plant in Gradara-Pesaro (August 2015),

to increase manufacturing footprint from 4,000 to
8,000 m2
actions: more product
- bSuite (software)

4
 Three-year plan

bSuite
• bSolid Biesse CAD/CAM
• bEdge edgebanding “in a click”
• bWindows simplified frame planning
• bNest complete nesting control
• bProcess controlled production
• bCabinet integrated furniture 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
 Three-year plan

bSuite
bSolid bEdge bWindows bNest

bProcess bCabinet bControl bCloud bDoors

33
actions: more product
Systems – cells
batch one lines
next step
MDS - winstore range

5
 Systems
Three-year plan

target:
• order management
• Lean Production (Production Lead Time)
• inventory reduction (cash flow growth)
• easy furniture assembly (new connections)
• batch one lines
• new line for drilling and inserting

2013 “turnkey
“turnkey projects ” order intake 24 Euro m
2014 “turnkey” projects ” order intake 36 Euro m with 40 orders for batch one lines
(average order value 600k Euro)

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

35
 Systems
Three-year plan

low size large size

medium-large size production
production production
9000
CELLS OR INTEGRATED PLANTS- CUSTOM
Continuous and integrated work cells
Service automation
6000
FLEXIBLE
BATCH ONE PROCESSES
2000 PROCESSES Plans, lines and
volumes

integrated processes,
Plans, lines and process automation
1000 integrated processes,
process automation

600 MACHINING
CENTRES,
Automated or semi-
150 automated machines growing demand

1-30 31-150 151-500 >500

size

36
 Three-year plan

Systems
BATCH BATCH EDGEBANDING BATCH CUTTING
DRILLING

DEVELOPMENT OF PRODUCTS FOR FLEXIBLE

PROCESSES
FLEXIBLE FLEXIBLE FLEXIBLE
EDGEBANDING DRILLING CUTTING 37
Systems: next step Three-year plan
Systems: MDS Three-year plan
Systems: handling Three-year plan
actions: more product
new glass & stone range

6 41
strategia: prodotti
new glass & stone range
Three-year plan

• completion of vertical machine range

• 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

• extention of the stone range (machines for roughing

stone blocks and cutting stone slabs)

42
 Three-year plan

glass & stone

• increase the Korex (China) production

of cutting machines. Target emerging markets

• expand parallel distribution network for water-jet

systems in the metal processing sector

• opportunity to incentivate Brazilian production

43
 Three-year plan

glass & stone

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

• “turnkey factory” : first experiences in the

supply of fully integrated turkey projects

• strong partnerships with universities:

• Ferrara University and Milan Polytechnic

44
actions: more network
subsidiaries – trade channel

manufacturing initiatives
to support the sales network

7
actions / strategy
Three-year plan

from tri-band offer to dual strategy

turnkey projects

stand-alone machines

46
actions /strategy
Three-year plan

from tri-band offer to dual strategy

stand alone machines integrated cells

high
“small”
customers

Biesse in any negotiation”

Network
“medium”
customers turnkey projects
“Biesse

“large”
customers

Biesse target
low

low high
47
Complexity
 Three-year plan

€/mln export share of consolidated revenues

500 100,0%

88% 89% 89% 90%

400
86%
82%

75,0%
76%

300

200 50,0%
2008 2009 2010 2011 2012 2013 2014

consolidated export incidence

48
 Three-year plan

subsidiaries: guidelines

• 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

• Enhance sales and marketing integration

49
 Three-year plan

subsidiaries: local initiatives

€/mln

• 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

2015

50
• 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)

51
 Three-year plan

trade channel: guidelines

€/mln

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

• Hire specialised staff and dedicated (resident) key account managers to

develop line and cell sales in particular

• Focus on “growth” customers target group in the medium-high range

segment, with a focus on “productiong upgrade”

• 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 the

perception of the “business offer system” and preventing price conflicts
52
 Three-year plan

trade channel: key guidelines

€/mln

• Increase potential customer mapping to enhance knowledge base and

geographic cover, using advanced customer relationship management
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 a

sector with similar manufacturing technology (processing and cutting
centres)
• Improve collaboration and schedule support and training activities (service)
with the sales force and direct distribution network, encouraging service
managers to become more direcly involved in the relationship with dealers
• Maximize the benefits of the new showroom (Pesaro), promoting “in
house” Tech Tours as a further enhancement of the “Biesse Experience”

53
actions: more network
Brazil

8 54
 Three-year plan

Brazil
• Latin America is the only geographic area
where Biesse has no manufacturing sites
(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

distribution network

55
 Three-year plan

Brazil
• prudent approach to business
development in Latin America –investment
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
 Three-year plan

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

• service strenghtening with resident

service engineers

57
 Three-year plan

Brazil – glass and stone

• 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 network
China

9 59
 Three-year plan

China: target

• increasing our market share in the

largest market in terms of size and growth
potential

• restructuring of Chinese operations after

acquiring 100% control

60
 Three-year plan

China: actions

•streamline company and business

organisation

• new, dedicated local manufacturing

facilities for wood – glass/stone

•expand sales network

develop after-sales service

•develop

61
 Three-year plan

China: streamlining our organisation

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

Manufacturing – KOREX Sales – Biesse Trading Shanghai

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
cutting etc);
4) speed up the introduction of a new
product portfolio (high tech);
1) 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

split/focus 2 teams to develop product portfolio and sales

network at the same time 62
 Three-year plan

China: streamlining our organisation

Current state Future state

HK BS HK BS ASIA HK BS HK

Centre Centre
Gain Gain

PRC PRC

Intermac Korex BTS Intermac

Korex BTS
Production Sale
Wood G&S Wood e Wood e
G&S G&S
Streamlining our “business model” in China also entails closing Centre Gain (HK) and
Intermac GZ 63
 Three-year plan

China: streamlining our organisation

Korex
Overseas Chinese market

Local Suppliers

Import of Components, Korex BTS

RM Production of Wood and Local Trading, After sales
Glass & Stone Machines service, Spare parts

Overseas Note: Inbound

Customers (machines Outbound
and Components)
 Three-year plan

China: streamlining our organisation

BTS
Overseas Chinese market

Imported Machines Korex BTS

and Spare Parts Production of Wood Local Trading, After
(Biesse Spa, Bre,Ma,, Viet, and Glass & Stone sales service, Spare
BSMNFG)
Machines parts
Wood
&
Note: Inbound Glass
Outbound Final Chinese Stone
Chinese dealers
Customers
China: streamlining our organisation
Three-year plan

New HQ in Dongguan
Establishment of an Office on 2° floor of
the Office Building to allow Sales (Wood e
G&S) and Service to operate in Dongguan

66
China: streamlining our organisation
Three-year plan

New showroom in
Dongguan
Opening
End of May
Inside Biesse China
June
Size

864 sm – Intermac &

Wood machines

67
Wood market analysis
Three-year plan

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

Government slogan)

Over 62% of total production consists of wood

Total furniture sector value
furniture; 16.4% of metal furniture and the rest
5,600 RMB/m (750 €/m)
of furniture in other materials
China-Italy Chamber of Commerce

The most important regions are:

Guangdong, Shandong, Zhenjiang, Henan,
Liaoning, Sichuan, Fujian, Shanghai, Jiangsu,
Hunan

Biesse supports Chinese local

manufacturers to improve the quality
and design of their products

68
Wood market analysis
Three-year plan

Main Competitor Extimated Turnover Estimated value of Biesse products market:

300 €/m
100 €/mln
Estimated market share
40 €/mln

30 €/mln 30%
Homag

20 €/mln Nanxing
Biesse
34% SCM
10% Exitech
Others 90 €/mln 7%
Rest of the market

5%
16 €/mln 14%

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

market share 69
Wood market analysis
Three-year plan

Main N° Machines Extimated

G&S : market value estimated at
Competitor Sold Turnover
32 €/mln

Yinrui 200 8.4 €/mln

Estimated market shares
* 120 5 €/mln

Jingling 100 4.2 €/mln 10% 8%

Yinrui
11%
Bottero
Hailining 90 3.8 €/mln 26% Intermac
Jingling
12%
Hailining
Pujinli 80 3.4 €/mln Pujinli

13%
16%
4%
Intermac 30 1.3 €/mln
Other 140 5.8 €/mln
* Cutting flat glass
70
local manufacturing: Wood
Three-year plan

CNC Edge-banding Cutting

turnkey integrated
projects Cells IMPORTED

Stream

Rover Gold Sektor

stand- Jade

alone

Spark Akron
Sliding Table
71
local manufacturing Glass
Three-year plan

CNC Cutting

turnkey integrated
projects Cells IMPORTED

Master 35-45
stand-
alone

Master 23 Master 34
Genius 37-61
Belted Sheet Transfer

72
 Three-year plan

expansion of local sales network

North East
Location:
 Shenyang
Status
 2017

West
Location: North
 Chengdu Location:
Status  Beijing

 2017 Status
 2016
East
Location:
 Shanghai main office
Status:
South
 Active
Location:
 Dongguan branch

Status:
 In process, ready in March
2015

opening of new branches 73

 Piano triennale

2015-2019 consolidated revenue

Local
51,9
Export
48,0
11,8
11,0
39,3
5,3
€/mln
29,1
2,1
22,0
1,6 40,1
17,3 37,1
2,2 34,0
26,9
20,4
15,1

2014 2015 2016 2017 2018 2019

74
CAGR 2015-2019: 23,9%
actions: more network
India

10 75
India production Piano triennale

main production site in Bangalore

76
 manufacturing India Three-year plan

800 act max production limit (*)

• Average growth rate 2015  2016 2017 : +15%

• 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% 77
actions: more network
marketing

11 78
 Three-year plan

corporate identity
definition of new, cohesive group image
rationalisation of brand architecture
implementation in websites, events and exhibitions, brochures,
showrooms, etc.

Catalogo
Product di Comunicshare
Corporate and event Website
Sito web
product
catalogue corporate ed eventi
communications
79
 Three-year plan

main objectives
A new Business Centre in 54 days!

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
 Three-year plan
PREVIOUS websites CURRENT websites

81
 Three-year plan

ITALY RUSSIA

82
 Three-year plan

key international events and

exhibitions

83
 Three-year plan

corporate communications & rebranding

2015 new projects

• 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
 Three-year plan

product – events and exhibitions –

web & digital
2015 new projects
• completion of product catalogues (Biesse, Intermac, Diamut, Plastica)
• 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)
• 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

12 86
 Three-year plan

Group order intake & backlog

400
375,6
€/mln
350 335,1
323,2
312,7
302,3
300
278,4

250

205,9
200

150
116,3
100 90,3 81,9
76,8 77,7
64,5 58
50

0
2008 2009 2010 2011 2012 2013 2014

orders intake backlog

•2014: Group order intake vs 2013 +20.1% 87
•2014 :Group backlog December 2014 vs December 2013 + 49.7%
 Three-year plan

market share glass

size € 235 m

wood (industrial)
size € 2.3 bn.
32% Bottero

20% Glaston

Biesse
Homag
53% 5% CMS
SCM 18%
28%
Biesse Rest of the market
25%
Rest of the market

6% mechatronics
13% size € 400 m

KESSLER
WEISS (Siemens group)
CMS 4% 6%
5% 3% FISHER PRECISE
10% Breton 7%
45% HSD
Thibaut
7% STEP TEC
Biesse
12% IBAG
Denver 36%
Rest of the market 17% GMN
8%
4% OMLAT
stone 7%
21% Size € 50 m
8% JAEGER 88
Rest of the market
actions: more discipline
financials

13 89
 Three-year plan

consolidated group turnover

600
€/mln 540
514
500 478
427
400

300

200

100

0
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

CAGR 2015 -2017: 8,1% 90

 Piano triennale

Consolidated P&L
€/mln 2013 2014e 2015e 2016e 2017e

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

costo del
156,5 170,7 187,7 201,5 210,5
venduto

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

*before non-recurring items

91
 Three-year plan

EBIT bridge 2014 - 2017

€/mln

39,8

112,8 31,5
14,0

54,0

26,5

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

*before non-recurring items

92
 Three-year plan

operating net working capital

€/m 2013 2014e 2015e 2016e 2017e

% inventory 86.3 98.8 107.0 112.0 116.0

over net sales 22.8% 23.1% 22.4% 21.8% 21.5%

% trade 76.2 76.9 88.0 95.0 100.0

receivables 20.1% 18.0% 18.4% 18.5% 18.5%
over net sales

% trade 111.1 121.7 134.0 140.0 145.0

payables 29.4% 28.5% 28.0% 27.2% 26.8%
over net sales

% operating net 51.4 54.0 61.0 67.0 71.0

working capital 13.6% 12.6% 12.8% 13.0% 13.1%
over net sales
historical low
(% over sales)
93
 cashflow – net debt
Three-year plan

€/mln 2013 2014e 2015e 2016e 2017e

% gross cashflow 52.1 38.4 32.3 41.5 48.6

Over net sales 13.8% 9.0% 6.8% 8.1% 9.0%

% investments -19.9 -20.9 -22.7 -15.4 -15.4

Over net sales 5.2% 4.9% 4.7% 3.0% 2.9%

% free cashflow 32.3 17.5 9.6 26.1 33.2

Over net sales 8.5% 4.1% 2.0% 5.1% 6.1%

proposed dividend -4.8 -9.8 -9.8 -9.8

0.36 per share 0.36 per share 0.36 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
Three-year plan

250 value
addedadded
value value
addedadded
value% 42,5% 45%
40,7% 41,8%
39,5%
37,9% 40%
36,9%
200
37,7% 35%
31,5% 35,5%

30%

150
25%

20%
100

15%

10%
50

5%

0 0%
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

95
ebitda
Three-year plan

80 13,1% 14%
12,4%
70 11,0% 12%

9,8%
60 10%
8,2%
50 8%
6,5%
40 6%
5,8%
30 4%
4,8%

20 2%

10 0%

0 -2%
-3,1%
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e
-10 -4%

-20 -6%
EBITDA EBITDA margin

96
ebit
Three-year plan

€/MIL

65 12%
10,0%
9,1%
7,5%
45 6,2% 7%

4,0%

25 2%
0,1%
1,5%
0,0%
5 -3%

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

-15 -8%

-12,3%
-35 -13%

-55 -18%
EBIT EBIT margin

97
net debt
Three-year plan

€/MIL
30 28,2

20

10
4,9

0
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

-10
-11,2 -11,4

-20 -18,9

-23,9
-30
-32,7

-40

-50
-50,4

-56,2
-60

98
labour cost
Three-year plan

€/MIL

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

0 10%

-20

-40

-60 -5%

-80

-100

-120 -20%

-140

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

-160 -30,4%
-32,9%
-34,6% labour cost
-180 labour cost % -35%

99
 Three-year plan

breakdown of Group employees

2014 2013 2012 2011 2010

manufacturing 1,201 1,175 1,265 1,250 965

% 42% 44% 45% 46% 41%

service & after-sales 628 613 574 577 568

% 22% 23% 21% 21% 24%

R&D 361 321 338 316 293

% 13% 12% 12% 12% 12%

sales & marketing 439 351 364 361 340

% 15% 13% 13% 13% 14%

g&a 252 235 242 233 202

% 9% 9% 9% 9% 9%

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

%
56% 57% 59% 61% 70%

outside Italy 1,276 1,148 1,136 1,081 708

%
44% 43% 41% 39% 30%

TOTAL 2,881 2,695 2,782 2,737 2,368

100
total capex
€/MIL
Three-year plan

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

0 0%

-1%
-5
-2%

-3%
-10

-3,8% -3,6% -4%

-15 -5%
-5,6%
-5,4% -5,0%
-6%
-5,9%
-20 -6,2% -6,3%
-7,1% -7%

-8%
-25
-9%

-30 -10%
total capex total capex %

101
operating net working capital
Three-year plan

€/MIL

100 30%

90

25%
80

70
20%

60

50 13,1% 15%
12,6% 12,8% 13,0%

40

10%
30

20
5%

10

0 0%
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

operating net working capital o.n.w.c. margin 102

receivables – payables - inventories
Three-year plan

€/MIL

100 35%

90
30%
28,5%
80 28,0%
27,2% 26,8%

70 25%
23,1%
22,4%
21,8% 21,5%
60
20%

50 18,5% 18,5%
18,0% 18,4%
15%
40

30 10%

20
5%
10

0 0%
2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

operating net working capital trade receivables margin trade payables margin inventories margin 103
appendix
sales breakdown

14 104
 Three-year plan

Biesse: breakdown of Group sales by

country
2014 % 2013
10,4 Italy 10,9 Italy
6,8 9,5 Western E.
Western E.
19,9 Eastern E. Eastern E.
20,7
29,2 26,6 U.S.A. - Canada
U.S.A. - Canada
14,1 Asia Pacific
Asia Pacific 13,5
Rest of the W. 18,8 Rest of the W.
19,6

2,8 Brazil
2014 B,R,I,C, 13,4%
3,4
2013 B,R,I,C, 17,7%
Russia
4,4 2014

2013
1,1 India
1,7

6,1 China
7,3 105
Biesse : Group sales breakdown Three-year plan

by division

2014
% 2013

Wood 4
2,30 Wood
2,3
4,10 -9,10 -7,9
Glass - Stone Glass - Stone

Mechatronics Mechatronics
14,80 14,1
Tooling Tooling
15,50 72,40 16,8 70,7
Components Components

Adjustments Adjustments

106
appendix
macro-economic and
sector-specific forecasts

15
 Three-year plan

World GDP
7,0%

6,0%
5,4%
5,0%

4,1% 4,0% 4,0% 4,0% 4,0%

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

2,0%

1,0%

0,0%
2010 2011 2012 2013 2014e 2015e 2016e 2017e 2018e 2019e

International Monetary Found | October 2014

108
 Three-year plan

World GDP: by country

World GDP growth forecast: 2015-2019 +4%

1,6%
1,6%
2,9%

Legend 6,7%

Gdp > 0 <

6,6%
Gdp > 2 < 3
4,6%
Gdp > 3

Source: 2,5%
International Monetary Found Oct 2014
3%
High growth areas

Medium growth areas

Low growth areas

109
 Three-year plan

main markets: housing &

furniture
Germany 5,2% China 37%
U.S.A 15%
24
Italy 2,4% 170
68
11

Brazil 2%

9,3

global furniture comsumption estimate for 2015: +3.3%

Global furniture consumption: (size) USD 462 bn; +3.3%
2015 USD bn 110
Source: CSIL Outlook 2014 2014 USD bn
110
 Three-year plan

key markets: housing -

15,0
furniture
Furniture 2015-2017 +3.7%
25
Consolidated sales 2015-2017 +8.1%
Housing 2015-2017 +4,3%
10,0
15

5,0 5

-5
0,0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

-15
World GDP forecast 2015-2017: +4%
-5,0
GDP
-25

Housing
-10,0
Δ % y/y
Furniture -35

consolidated sales (scala dx)

-15,0 111
-45
fonti utilizzate: CSIL furniture demand (indice mondiale) - CRESME /SIMCO GDP and new housing (indice mondiale)
 Three-year plan

key markets: housing -

furniture
15,0

historical beta average 2.6 25

10,0
15

5,0 5

-5
0,0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e
-15
historical beta average
-5,0

-25
media housing & furniture Δ % y/y
-10,0
-35

consolidated sales
-15,0 -45
112
 Three-year plan

key markets:
housing - furniture

4%* X 2.6
historical beta

5
Housing & furniture average
(outlook 2015-2017)

10.6%
growth rate
* global “furniture” (2015-2017): average +3.7%

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

furniture & housing (2015-2017): average +4% 113

 Three-year plan

key markets: furniture

office

84% 85% 85% 85% 86% 86%

home
84% 84% 84% 84% 84%

other

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

114
 Three-year plan

key markets: furniture

500,0 500,0

400,0 400,0

300,0 300,0

200,0 200,0

100,0 100,0

0,0 0,0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e 2016e 2017e

Furniture consolidated sales

115
 Three-year plan

UCIMU (Italy)
Ucimu: press release of 27 january 2015

…on a yearly basis, the order intake index increased by

14.7% thanks to the positive impact of export orders…,,”five
quarters 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 seems
to be showing some green shoots”…, as always, the
improvement of the financial environment or special laws
(e.g. the Sabatini Law) can support a recovery in consumer
spending for durable goods…,
116
 Three-year plan

ACIMALL (Italy)
Acimall: press release of 3 february 2015

• “…order intake for 2014 is +19.7% over the previous

year, with a growing and important share of internal
demand (+24.7%)…
• …expectations for 2015 are moderately positive both for
order intake and employment levels, even if visibility is
still limited…”

117
VDMA (Germany) Three-year plan

Woodworking
machinery + 14% production of woodworking
machinery +14% (2014 vs
2013)

forecast (woodworking) 2015:

+3%

VDMA global index:

+ 2% (2014 vs 2013)

Forecast (global index) 2015:

+2%

118
 Three-year plan

wood: production by country

20%

2% Italy Germany
3% 15%
3% China USA
4%
Austria Japan
4%
Taiwan Turkey
5%
Canada Spain
6% 25% Others

13%

119
source: VDMA 2015 report
disclaimer

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only 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 publicly
available information. including the Quarterly Reports, the Half Annual Report,
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Biesse S.p.A. possible or assumed future performance, (business plan) are or
may be forward looking statements and in this respect they involve some risks
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 Any reference to past performance of the Biesse S.p.A. shall not be taken as an
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