COMPANY PROFI LE THE GROUP I N PI LLS Global player in laser system - PDF document

COMPANY PROFI LE

THE GROUP I N PI LLS Global player in laser system s for industrial applications: am ong the top 5 lead players w orldw ide Leader in m ulti-axis applications About 3 ,0 0 0 laser system s installed w ith over 1 ,0 0 0 custom ers in Autom otive, Aerospace and in a w ide range of other sectors Consolidated sales in 2 0 0 6 : 1 4 8 M€ ( + 3 3 % com pared to 2 0 0 5 ) Export: over 7 5 % to m ore than 5 0 countries R&D expensed to P/ L: average 6 % on consolidated turnover 7 Manufacturing facilities:in I taly ( 3 ) ,USA ( 2 ) and China ( 2 ) 7 4 0 em ployees: in I taly ( 5 6 0 ) , USA ( 1 2 0 ) and Europe ( 6 0 ) . Additional: 2 0 0 + em ployees in China in JV ( not consolidated) Strong structured presence in After-Sales Service 2

OUR HI STORY 1 9 7 7 - 1 9 7 9 : START UP AS ENGI NEERI NG COMPANY • I ncorporation under the nam e of PRI MA PROGETTI 1 9 7 7 • I ncorporation of PRI MA ELECTRONI CS • Developm ents of a w ide range of hi-tech products • First 3 D laser m achine developed in 1 9 7 9 ( ZAC) 1 9 8 0 -1 9 8 9 : GROW TH TO I NDUSTRI AL OPERATI ON 1 9 8 0 • Leadership in 3 D laser robots ( OPTI MO) • Developm ent of industrial electronics & softw are • Player in industrial robots for arc w elding & handling • Leading position in m easuring robots 1 9 9 0 - 1 9 9 5 : FOCUS ON LASER 1 9 9 0 • I ncrease 3 D products range ( RAPI DO) • Developm ent of I nternational sales/ service subsidiaries ( US, France, UK) • Sale of non-core activities • Entry in 2 D laser m arket through acquisition of the Sw iss Co' LASERW ORK AG 1 9 9 6 - 1 9 9 9 : STRONG GROW TH AND I PO • I SO 9 0 0 1 certification • New 2 D product launch ( PLATI NO) 2 0 0 0 • R&D investm ent program to increase the product range ( New OPTI MO, DOMI NO, MAXI MO) • First JV in China: SHENYANG PRI MA LASER MACHI NE COMPANY, Ltd. • Listing on I talian Stock Exchange ( presently STAR segm ent) 2 0 0 0 - 2 0 0 7 : UNDI SPUTED LEADERSHI P • Acquisition of Convergent Energy and Laserdyne ( presently both divisions of PRI MA North Am erica) 2 0 0 7 • JV in Japan: SNK PRI MA, Ltd. • Second and Third JVs in China: SHANGHAI UNI TY PRI MA and W UHAN OVL • Launch of SYNCRONO and RAPI DO EVOLUZI ONE 3 • Strenghtening EU sales/ service ( Prim a Gm bH, Prim a Scandinavia, Prim a Polska) • Acquisition of OSAI

OUR STRUCTURE PRIMA INDUSTRIE S.p.A. ELECTRONICS SEGMENT LASER SEGMENT 50% ITALY PRIMA ELECTRONICS Spa NORTH AMERICA HEADQUARTERS ASIA PACIFIC 100% TORINO - Italy PRIMA INDUSTRIE Spa PRIMA NORTH AMERICA OSAI PRIMA CHINA CONVERGENT LASERS Germany Barone Canavese BEJING DIVISION (TO) - Italy EUROPEAN BRANCHES (MA) UK OSAI UK UNITY PRIMA PRIMA SYSTEMS SHANGHAI-China France DIVISION (MA) OSAI GmbH Scandinavia SNK – PRIMA OSAKA - Japan LASERDYNE SYSTEMS DIVISION (MN) OSAI USA Spain 4 Poland

5 THE LASER SEGMENT

MARKETS OVERVI EW : LASER SEGMENT ( 3 D MARKETS & APPLI CATI ONS) T he star t-up of lase r manufac tur ing: AUTOMOTI VE L ase r c utting mainly use d fo r: CAR TI ER 1 SUPPLI ERS � Pro to typing MANUFACTURERS BENTELER � Small batc he s BMW COMAU � Pro duc tio n start-ups CITROEN DANA � Nic he c ars manufac turing DAIMLER CHRYSLER DOVER � Spare parts FIAT EDAG FORD GESTAMP GM HUJER KARSAN MAGNA OPEL ORAN PEUGEOT POSCO Carbo dy c o mpo ne nts lase r c ut by: PROTON SALZGITTER RENAULT THYSSEN KRUPP � Die manufac ture rs ROVER TOWER AUTOMOTIVE � “Pro to type s” jo bshps SAIPA VOESTALPINE SEAT WILKEN TATA VOLKSWAGEN VOLVO Ne w high volume applic ations: HSS F ir st applic ations in pr oduc tion: (Hot Stampe d Ste e l) L ase r c utting o f hydro fo rme d � Ro o f re info rc e me nts c o mpo ne nts: � Cro ss & side me mbe rs � E ngine c radle s � Suspe nsio n arms � Ro o f bars L ase r re mo te we lding : � Side do o rs � Bumpe rs 6 � A-pillars � B-pillars

MARKETS OVERVI EW : LASER SEGMENT ( 3 D MARKETS & APPLI CATI ONS) Nozzle Guide Vanes (NGV) and Turbine blades Combustion Chamber AEROSPACE & ENERGY AI RCRAFT ENGI NE / TURBI NE MANUFACTURERS MANUFACTURERS AIRBUS ALLIED SIGNAL BOEING ALSTOM CHENGDU AIRCRAFT IND. ARES EUROCOPTER Laser Drilling of a AVIO HISPANO SUIZA Combustion Chamber CHROMALLOY LOCKHEED MARTIN GE NASA HAL (HINDUSTAN AERO LTD) NORTHROP GRUMMAN HITACHI SHENYANG AIRCRAFT HONEYWELL XIAN AIRCRAFT COMPANY INTEK KALUGATURBINE KAWASAKI Aircraft Production Forecast MITSUBISHI MORA PRATT & WHITNEY ROLLS ROYCE SHENYANG LIMING SIEMENS SNECMA SOLAR TURBINES TURBOMECA 7

MARKETS OVERVI EW : LASER SEGMENT ( 2 D MARKETS & APPLI CATI ONS) AGRI CULTURAL & COSTRUCTI ON MACHI NES, TRAI LERS & TRUCKS CATERPILLAR LECITRAILER BRINK PFANZELT MASCH. SCANIA TUCHEL MASCH. AMMAN YANMAR SIAC SEVEL POWER BEAM MARINI KARAVAN TRAILERS IVECO SKODA VOLVO TRUCKS HVAC & W HI TE GOODS RIELLO STENGEL WHIRLPOOL INOX PAIVE LOWARA WOLF ELECTROLUX RAAB ECOLITE THORN LIGHTING HUSKVARNA FORKLI FTS, I NDUSTRI AL MACHI NERY & OTHER IDEAS EN METAL NISSAN FORKLIFTS STILL WAGNER FRAMEC LINDE OTIS KESSEBOEHMER ABB NIJSSEN JUROP GRUPO AZKOYEN 8 TORO

9 OUR PRODUCTS

PRI MA MARKET SHARE BY COUNTRY 1 0 ,0 % 1 5 ,0 % 2 0 ,0 % 2 5 ,0 % 3 0 ,0 % 0 ,0 % 5 ,0 % 0 % I NDI A AUSTRALI A 2 0 0 6 W ORLD MARKET SHARE RUSSI A POLAND BRAZI L TURKEY BENELUX UK & I RELAND OTHER ASI A SPAI N KOREA EAST. EUROPE SCANDI NAVI A FRANCE 5 % W ORLD MARKET SHARE BY COUNTRY I TALY 1 0 % CHI NA ( PI + JV) GERMANY JAPAN 1 5 % PI MARKET SHARE AVERAGE USA 10 2 0 %

LASER SYSTEMS MARKET SI ZE Prim a I ndustrie consolidated sales vs Laser System s for Macro Material Processing Market size PI Group sales Market size 160 140 120 6,0 ( Million €) ( Billion € ) 100 5,0 80 4,0 60 3,0 40 2,0 20 1,0 0 0 1995 2000 2005 2006 2010 CAGR PI 95-06 + 1 7 ,1 % Actual CAGR MARKET 95-06 + 1 2 ,3 % Actual CAGR MARKET 05-10 Expected + 1 0 ,7 % 11

2 D LASER SYSTEMS MARKET SI ZE Market Features 2 D Cutting Laser Market Shares by Volum e (2006) •Large market of € 1 ,6 B : -annual sales of 3.700 machines worldwide Trum pf Bystronic • Laser Cutting technology: 30% 18% -leader in <25mm thickness range for high quality/cost machining • Very concentrated market, with share of first 3 Players (C3) 64%: -leadership of Trum pf , with RMS 1 ,7 x Other - Prim a I ndustrie among the First 10% Followers of Three Big (Trumpf, Bystronic, Am ada Prim a Mazak 16% Amada) with MS 8 % Mitsubishi I ndustrie* 9% 9% 8% • Grow th drivers : - Further replacement of Punch Presses - Substitution of Laser installed park Units sold: 3 ,7 0 0 (lifetime of ≈ 10 years) Market value: 1 .6 B€ - Adoption in new applications 12

3 D LASER SYSTEMS MARKET SI ZE 3 D Cutting Laser Market Shares by Volum e Market Features (2006) •High power 3D laser cutting mainly used in Autom otive , Transportation and Aerospace Industries. Other NTC Trum pf 12% •Niche market of € 0 ,2 B : 24% 20% -annual sales of 200 machines worldwide • Very concentrated market, with share of first 3 Players (C3) 79%: Mazak -co-leadership of Prim a I ndustrie 10% and NTC , with RMS 1 ,0 x Prim a - Trum pf close Follower, with MS 23 Mitsubishi I ndustrie and RMS 0,8x 10% 24% • Grow th expected following Autom otive and Aerospace applications. Units sold: 2 0 0 Market value: 0 .2 B€ 13

HUMAN RESOURCES - R & D • Average em ployees age: less than 3 5 years old • Scholarship: 8 0 % w ith University or High school degree • Over 8 0 Engineers in R&D. • R&D centers in: • I taly ( Torino and Bari) • USA ( Chicopee and Cham plin) R&D expensed to P/ L 10000 8,0% 7,0% 8000 6,0% % on sales 5,0% 6000 k€ 4,0% 4000 3,0% 2,0% 2000 1,0% 0 0,0% 14 1 997 1 998 1 999 2000 2001 2002 2003 2004 2005 2006

15 THE ELECTRONICS SEGMENT

MARKETS OVERVI EW : ELECTRONI CS SEGMENT I NDUSTRI AL MOTI ON TRANSPORT ENERGY A&D CONTROL ALSTOM ATLAS COPCO ABB ELECTRO POWER SYST. ALENIA FERROVIARIA Industrial Air COMAU LOMBARDINI MICROTECNICA ANSALDO BREDA ATLAS COPCO Oil-free COORD3 / METRIS SAIPEM OTO MELARA AZIENDE TRASPORTI BOBRY DEA SAAB UNDERWATER MILANESI CAMPETELLA SEPA LVD CENTRO RICERCHE ENGELHARDT SERVOTRONIC PHASE MOTION CONTROL FIAT IREM PRIMA INDUSTRIE CIRCUMVESUVIANA MANFREDI FIAT AUTO MYDATA automation FIREMA TRASPORTI NEGRI BOSSI OCLAP NERI MOTORI PSA SANDVIK SDT SERVOTRONIC 16

OUR PRODUCTS Operator Interface for CNC Regulators and I/O modules Brushless Motors Teach Pendants Numerical Controls Welding heads Train stability control unit 17