[PPT] - Company Presentation Company Presentation 1 The product 2 Landi PowerPoint Presentation

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Company Company Presentation Presentation

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The product

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Landi Renzo – World Leader in CNG and LPG Alternative Fuel Systems

Alternative Energy Focus Company Main Products Alternative Energy Focus Integrated Systems Producer

Electronic Control Unit Switch

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Electronic Control Unit Injector Rail Switch Filter Regulator

“Ready-to-go” systems marketed through:

–

Car manufacturers (OEMs) - ca. 50

–

Aftermarket through distributors and installers - ca. 750 Injector Rail Regulator

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The Market

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2,9m 7,9m

High Growth Market

LPG and CNG are cleaner and cheaper Increasing pressure to use alternative fuels CAGR: 9.9% CAGR: 18.2% Global LPG and CNG Unit Sales (2004 – 2012E)

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2,4m 2,6m 2,9m 2004 2005 2006 2007E 2008E 2009E 2010E 2011E 2012E Proven technology broadly available today

Source: Frost & Sullivan

The gaseous fuel systems market has experienced strong tailwinds and its growth look set to improve in the years to 2012

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€ 0.85 € 1.00

Market Drivers: environment + saving

Alternative Energy Focus Greenhouse Gas and Particulate Emissions Alternative Energy Focus Cost to Run 10km

100% 75% 62% 6 € 0.64 € 0.46 Gasoline Diesel LPG CNG 62% 52% 40% Diesel Gasoline Ethanol LPG CNG

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Sector Competition

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Competitive environment: 2006 market share

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Strong Positioning

ach igh Tech Products

Tartarini BRC Prins Tartarini OMVL BRC

Landi and Lovato cover most of the segment of the market

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Components System Global Reac LPG CNG Low tech products High

Bigas Stargas Lovato OMVL BRC Lovato Stargas Bigas Prins Lovato OMVL Tartarini

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Business Model

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How Landi produces - Lean Business Model

In-House

R&D Production of High Value Added Components (Injection Systems) Testing / Quality, Packaging Sales & Marketing

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Third Parties

Assembly Logistics Production of Basic Components

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Landi’s subsidiaries

Brazil Picture Poland Picture Netherlands Picture Italy Picture Italy

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Italy (MED) Picture China Picture Pakistan Picture

Assembly, Testing and Packaging Distribution

Iran Picture

Product Presence

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Selling process and market visibility

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Sales - Landi Channels and Visibility

OEM After Market

3 Years OEM Production Plan 6 Months OEM Forecast (Rolling) Impacting variables

Governement energy policy
Gasoline/CNG-LPG Cost Ratio
New CNG-LPG/New Vehicle Ratio
CNG-LPG Cars/Total Cars Ratio
Refueling Stations

…….

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50% of 2007 turnover 50% of 2007 turnover 2 Months Landi Binding Order

…….

3 Years After Market Demand 3 Years Landi Demand

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OEMs Channel

Cars Developed Markets Emerging Markets Group Group

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LCVs

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External growth: Lovato Acquisition

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Strategic Rationale for Lovato Acquisition

Complementary product range and channel focus Strengthening / expansion of positioning in certain geographical markets

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Perfect fit in terms of business model Production efficiency synergies available

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Consideration

€ 63 million on a debt free basis
€ 33m through cash available

Lovato Financial and Transaction Highlights

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FY 2008 Growth

Revenues grew + 21.5% from 39.3€ mln to 47.8€ mln

Financing

€ 30m through a 5-year corporate loan-Euribor + 70 bps

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FY08 Financial Results

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FY08 Profit&Loss Highlights

Eur m

12Mo12M Growth 216.2 100.0% 163.9 100.0% 31.9% 46.8 21.6% 35.1 21.4% 33.3% FY08 FY07

REVENUES EBITDA

These results include the consolidation of some Lovato numbers

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46.8 21.6% 35.1 21.4% 33.3% 40.7 18.8% 31.2 19.0% 30.5%

EBITDA EBIT Net Profit

26.7 12.4% 19.7 12.0% 35.8%

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Revenues Breakdown – includes Lovato cons

Eur m

Growth

LPG 122.6 56.7% 73.3 44.7% 67.3% CNG 88.5 40.9% 85.7 52.3% 3.2% Other 5.1 2.3% 4.9 3.0% 3.6% Revenues 216.2 100.0% 163.9 100.0% 31.9%

FY08 FY07

Segment

Revenues Breakdown by Segment and Region (EUR m)

OEM Europe LPG boosting growth

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Italy 68.3 31.6% 43.8 26.7% 55.7% Europe (ex Italy) 58.5 27.0% 32.9 20.0% 78.0% SW Asia 35.7 16.5% 60.3 36.8%

40.9%

America 23.4 10.8% 10.6 6.5% 120.2% Other 30.4 14.1% 16.3 9.9% 87.2% Revenues 216.2 100.0% 163.9 100.0% 31.9%

Region

Growth in all Areas but SW Asia

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Roce and working capital level

Return on Capital Employed (ROCE)*

57.0%

Net Working Capital

30.9% 18.0% 21.8%

35.7

41.9 33.1 3.1

39.0

49.6 68.2 22 54.8 131.9 Dec-07 Dec-08 Capital employed ROCE

Roce decreases as Lovato has been totally consolidated as assets but partially as margin

€ m

Note: ROCE = Ebit/Capital employed

Accounts Receivables Inventory Accounts Payables Other Current Assets/Liabilities

Improved Net Working Capital as a percentage on sales

Dec-08

41.9 (42.4)

Dec-07

1.7

(77.0)

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9.0 6.4

Cash generation and Net Financial Position

Cash Flow (€m) Net Financial Position (€m)

13.7 50.6 5.3 23.2

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dec-07 Jun-08 Dec-08

Op. CF

Capex

0.9
14.3
6.2
7.3
6.5

Net debt is due to the cash-out for Lovato Acquisition

Dec-07 Dec -08

FCF

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Company Profile

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Company Profile

Investor Relations

Investor Relations Contacts: Pierpaolo Marziali Tel: +39 0522 9433 E-mail: investorrelationslandi.it@landi.it www.landi.it

Top Managers

Stefano Landi Gabriele Venturini Paolo Cilloni Claudio Carnevale Pierpaolo Marziali

CEO COO CFO CMSO M&A and IR Officer

Board of Directors

Giovannina Domenichini - President Stefano Landi - CEO Carlo Alberto Pedroni – Executive Director Paolo Gabbi - Director Alessandro Ovi - Indip. Director Tomaso Tommasi di Vignano – Indip. Director 25

Pierpaolo Marziali

M&A and IR Officer

Shareholding Share Informations Stock Chart

N. of shares outstanding: 112.500.000

Price as of 16/03/09: € 2.32 Capitalization: € 260.6m Italian Stock Exchange-segmento STAR Specialist: Mediobanca S.p.A.

54.67% 4.44% 2.31% 5.06% 33.52% Girefin S.p.A. Gireimm S.r.l. Ubs EFM Royce&Associates Market

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Annexes

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Healthy Balance Sheet

ASSETS (thousands of Euros) 31 December 2008 31 December 2007 Non-current assets Property, plant and equipment 25,106 14,926 Development expenditure 3,661 1,844 Goodwill 51,961 2,988 Other intangible assets with finite useful lives 18,063 1,290 Other non-current financial assets 73 80 Deferred tax assets 4,059 1,841 Total non-current assets 102,923 22,970 Current assets 27 Current assets Trade receivables 48,977 41,856 Trade receivables - related parties 586 Inventories 68,163 33,091 Other receivables and current assets 7,425 8,870 Other receivables and current assets - related parties 88 Current financial assets 156 205 Cash and cash equivalents 30,272 58,055 Total current assets 155,579 142,164 TOTAL ASSETS 258,502 165,134

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Healthy Balance Sheet

EQUITY AND LIABILITIES (thousands of Euros) 31 December 2008 31 December 2007 Equity attributable to the shareholders of the parent Share capital 11,250 11,250 Other reserves 87,154 74,356 Profit for the period/year 26,706 19,661 Total equity attributable to the shareholders of the parent 125,110 105,266 Minority interests 290 134 TOTAL EQUITY 125,400 105,401 Non-current liabilities Bank loans 27,679 1,971 Other non-current financial liabilities 465 632 Provisions for risks and charges 495 246

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Defined benefit plans 2,579 1,948 Deferred tax liabilities 6,975 1,675 Total non-current liabilities 38,193 6,473 Current liabilities Bank overdraft and short-term loans 8,465 4,687 Other current financial liabilities 167 163 Trade payables 66,641 39,655 Trade payables - related parties 10,350 2,780 Tax liabilities 3,581 2,467 Other current liabilities 5,705 3,198 Other current liabilities - related parties 312 Total current liabilities 94,909 53,261 TOTAL LIABILITIES AND EQUITY 258,502 165,134

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Profit & Loss

INCOME STATEMENT (thousands of Euros) 31 December 2008 31 December 2007 Revenues (goods and services) 214,100 163,886 Revenues (goods and services) - related parties 2,098 Other revenue and income 652 1,046 Cost of raw materials, consumables and goods and change in inventories

76,967
66,011

Cost of raw materials - related parties

18,907
12,292

Cost for services and use of third party assets

51,520
35,956

Cost for services and use of third party assets - related parties

853
531

Personnel expenses

20,279
14,329

Accruals, impairment losses and other operating expenses

1,564
737

Gross Operating Profit 46,760 35,076 Amortisation, depreciation and impairment losses

6,032
3,866

Operating Profit 40,728 31,210 Financial income 1,907 1,406

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Financial income 1,907 1,406 Financial expenses

1,425
998

Exchange rate gains (losses)

1,541
111

Profit Before Tax 39,669 31,508 Income tax expense

12,867
12,010

Profit for the period/year, of which attributable to: 26,802 19,497 Minority interests 96

163

Shareholders of the parent 26,706 19,662 Basic earnings per share (in Euros) - calculated on 112.500.000 ordinary shares 0.2374 0.1748 Diluted earnings per share (in Euros) 0.2374 0.1748

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Summary of Key Regions and Countries

European Union

Tightening emissions standards for all vehicles
Proposed CO2 emissions target at 130 g/km starting from 2012 and getting at 95 g/km within

2020

Italy

Government offers cash incentive of €1,500 for new vehicles and €500 (CNG) €350 (LPG) for

aftermarket conversions

Further regional incentives exist for LPG and CNG

Government Regulation and Legislative Overview

Lower taxation of gas vs. petrol and diesel
Emission targets and caps (Kyoto Protocol and regional targets)
Forced conversions, e.g. for fleets

Alternative Energy Focus Key Regulatory and Legislative Mechanisms Driving Gas Vehicle Demand

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Further regional incentives exist for LPG and CNG

India

Mandatory conversion of all public vehicles in Delhi and Bombay already in force

Pakistan

Mandatory conversion of local public transport and all taxis to CNG by 2008

Iran

Government obliges OEMs to turn 60% of production into CNG ( starting from 2008/2009)
Rationed petrol use

Venezuela • Government wants to convert 1 mln cars within 2012 Australia • Government offers grants of AUS$ 2,000 for conversion and AUS$1,000 for OE purchase Russia

Working in conjunction with Gazprom to develop program to use CNG in public transport
CNG price is regulated by the government and can not be higher than 50% of petrol

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LPG and CNG are Broadly Available Today

Service Stations Networks and Circulating LPG Vehicles (Top 10 by Number of Vehicles) Service Stations Networks and Circulating CNG Vehicles (Top 10 by Number of Vehicles)

Country Network LPG vehicles Poland 6,700 2,050,000 Turkey 4,500 1,500,000 Italy 2,378 1,100,000 Netherlands 2,000 225,000 Country Network CNG vehicles Argentina 1,782 1,714,901 Pakistan 1,923 1,650,000 Brazil 1,635 1,555,807 Italy 609 432,900 31 Czeck Rep. 400 170,000 Lituania 830 170,000 France 1,830 160,000 UK 1,500 125,000 Belgium & Luxembourg 626 71,000 Germany 4,211 250,000 China 561 336,062 Iran 519 826,585 Colombia 377 257,510 Ukraine 224 120,000 India 402 523,074 Egypt 114 101,346

Source: Assogasliquidi EGM Srl-EuroGeoGrafiche Mencattini BOVAG, UKLPG, Company sources Source: NGV Communications Group , ANGVA, Company sources

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7 408 ,437 424 412 413 411 405 ,449 1,496 1,549 1,650 1,981 2,000 2,000 1,813 1,624 1,596 1,628 1,576 1,510 1,490 1,490 1,580 1,580 1,580 1,660 1,670 1,510 00 60 2,007 2,003 1,991 1,972 1,983 2,062 2,107 2,127 2,124 2,161 2,191 2,271 2,268 2,262 2,263 2,267 2,253 2,226 2,232 2,239 2,442 2,447 2,449 2,457 2,477 2,589 2,589 2,583 2,574 2,545 2,544 2,548 2,540 2,530 2,520 2,520 2,520 2,500 2,510 2,520 2,530 2,510 2,490 2,480 2,480 2,480 2,480

2,0 2,5 3,0

CNG Prices Proven to be Cheaper and less Volatile than Petrol and Ethanol: the Brazilian Case

Delta 45%

nt (Brasilian Real)

Cost Per Unit in Brazilian Real

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1,074 1,075 1,075 1,073 1,069 1,091 1,100 1,092 1,095 1,086 1,081 1,085 1,088 1,091 1,094 1,089 1,088 1,000 1,121 1,120 1,194 1,194 1,206 1,209 1,216 1,247 1,247 1,262 1,257 1,271 1,244 1,273 1,263 1,260 1,260 1,260 1,250 1,260 1,250 1,250 1,320 1,330 1,330 1,340 1,350 1,360 1,360 1,205 1,170 1,105 1,032 1,048 1,136 1,162 1,262 1,273 1,347 1,408 1,43 1,42 1,412 1,413 1,411 1,332 1,215 1,251 1,272 1,405 1,44 1,4 1, 1 1,5 1,4 1,4 1 1 1 1,5 1,400 1,360 1,340 1,320 1,330

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Natural Gas Ethanol Petrol

There are a greater number of variables that affect the price of ethanol compared to natural gas, which leads to

higher underlying price volatility. Climatic fluctuations and supply / demand dynamics for crops are at the root of this volatility.

Source: Petrobras Price Equivalent

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Disclaimer

This presentation has been prepared by Landi Renzo S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. For further details on the Landi Renzo Group, reference should be made to publicly available information, including the Quarterly Reports and the Annual Reports. Statements contained in this presentation, particularly the ones regarding any Landi Renzo possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Any reference to past performance of the Landi Renzo shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms.

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