Company profile Company profile STAR Conference 2011 - London - PowerPoint PPT Presentation

Company profile Company profile STAR Conference 2011 - London October 3 rd

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” Aristotle

About us • Leading global player in laser and sheet metal machiner (am n the top 4 players worldwide) machinery (among the top 4 players worldwide). • Comprehensive product range in laser systems and sources punching shearing bending and automation and sources, punching, shearing, bending and automation for sheet metal industry • Market leader in 3D lasers for automotive, Market leader in 3D lasers for automotive, aerospace and energy markets. • Over 30 years experience in the sector. y p • Over 10,000 machines and systems installed in 60 countries • Manufacturing facilities in Italy, Finland, USA, China • Worldwide sales and service network 3

Group business segments p g Machinery segment Components segment Laser Sheet metal Industrial Laser machines processing systems electronics technologies Laser machines for Machines for sheet metal Power and control High-power laser sources g p cutting, drilling and treatment by means of electronics for industrial welding mechanical tools applications SALES : SALES : Euro 217 M * Euro 217 M SALES : SALES : Euro 48 M * Euro 48 M Employees: 1,124 ** Employees: 263 ** *End of fiscal year 2010; sales are gross of interco’ items 4 ** As at 30/06/2011

Prima Industrie Group industrial footprint Kauhava – Finland Champlin (MN) – Collegno (TO) – Italy USA Laserdyne systems Punching & Combi Laser systems systems - Automation Cologna V.ta (VR) – Italy Italy Shanghai – CHINA (JV 35%) Moncalieri (TO) – Panel benders Chicopee (MA) – Italy USA Barone C.se (TO) – Laser systems Italy Italy Convergent Lasers Electronics Electronics = Prima Electro production plant = Prima Power production plant 5

Prima Industrie Group sales & service footprint Gent - Belgium K Krakow – Poland k P l d Bletchley- UK Toronto – Canada Moscow – Russia Osaka - Japan Coventry – UK Frankfurt/Munich - Germany Chicago (IL) USA Chicago (IL) – USA Barcelona - Spain Beijing - China Paris - France Chicopee (MA) – Guangzhou - China Abu Dhabi – U.A.E. USA San Paolo – Brazil Pune – India = Sales & Service Prima Electro = Sales & Service Prima Power 6

Market analysis y Reference Market Approach (2009, €B, percentage) Machine Tool Overall Market of €35,7B worldwide including • Machine Units/ Systems , Robots and Automation Lines Sheet Metal Working: Cutting & Bending Addressable market for Prima Industrie : €2,4B • Addressable Major segments : • Market - Cutting (€1,9B) - B Bending (€0,5B) di (€0 5B) High Power Laser Systems (part of Sheet Metal Working market) Core market for Prima Industrie , includes two major • technologies: - CO2 Laser - Solid State Laser: Lamp-pumped, Diode-pumped €2,4B (Nd:YAG, Yb:YAG, Fiber), Disk lasers €1,2B 1 2 3 Cutting and Bending Sheet Metal Working (€2,4B) is the reference market for Prima Industrie 7 Source: UCIMU (Unione Costruttori Italiani Macchie Utensili, Gardner Research, Optech Consulting)

“There is nothing new in the world except the history you do not know.” p y y Harry S. Truman

Market expectations: changing geographical mix changing geographical mix 9 Source: UCIMU (Unione Costruttori Italiani Macchie Utensili,)

Laser systems market by geographical area 10

Revenues and orders – quarterly trend q y 120 Quarterly revenues 105,6 102,4 1Q08 through 2Q11 100 83,6 81,3 75,7 80 67,5 66,7 67,1 66,4 60,6 60 54,2 51,4 48,1 46,3 40 20 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 120 Quarterly order intake 1Q08 through 2Q11 97,2 100 87,1 85,8 85,5 85,8 81,1 80 65,5 64,9 61,8 60,6 59,6 57,9 60 60 49,9 43,5 40 20 0 11 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

“Th i “The investor of today does not profit t f t d d t p fit from yesterday's growth”. Warren Buffett

Geographical trends g p Revenues as at June 30, 2011 Europe 38% North Italy 14% ta y % America 22% America 22% Asia and rest of the world 26% Asia and Rest of the world sales contribution 26,0% 25,9% 19 1% 19,1% 15,8% 11,8% 9,5% FY2006 FY2007 FY2008 FY2009 FY2010 1H2011 13

Covering high-growth markets g g g BRAZIL RUSSIA Prima Power Installed base: 540 Prima Power Installed base: 87 machines machines Market potential: • 150-200 laser machines/year y • 200-250 punch-press Brazil GDP growth Source: Oxford Economics Brazil Investment rate 2010-2014 Source: company data 14

Covering high-growth markets g g g INDIA CHINA Installed base: 93 machines Installed base: over 1500 machines Installed base: over 1500 machines (including JV’s) Estimated total machine tool consumption in India in 2010 is Prima Power has 1.5 bn€ which will grow to 6.0 1.5 bn€ which will grow to 6.0 • 5-10% market share in punching • 5-10% market share in punching bn€ in 2020 machines • almost 30% market share in laser machines India India Source: Economywatch.com database database 15

Covering high-growth markets g g g PRIMA POWER IN THE WHY WE HAD TO BE BRICS BRICS THERE IN SHORT THERE IN SHORT: • CHINA: first JV and branch • BRICS are among the fastest office in1999. Currently growing economies present with one JV and one t ith JV d • All major players in the subsidiary. world are present • RUSSIA: incorporation of • Machines from foreign g subsidiary in 3Q2010 (OOO b idi i 3Q2010 (OOO producers still have a Prima Power - Moscow) competitive advantage over • BRAZIL: incorporation of domestic manufacturers subsidiary in 2Q2011 (Prima b idi i 2Q2011 (P i • Local presence gives long Power South America Ltda – term assurance to the San Paolo) customer • INDIA: incorporation of INDIA i ti f • Good service support is subsidiary in 3Q2011(Prima essential to consolidate the Machine Services India relationship with the Private Ltd. - Pune) ) c st mers and ain their customers and gain their trust 16

R&D: investing for the future g Platino w ith fiber laser Prem io Le Fonti: aw arded as Prem io Le Fonti: aw arded as Best I talian Com pany New SG, electrical shearing system 17

R&D: investing for the future g LAB ON NEW GENERATION LASERS LAB ON NEW GENERATION LASERS in cooperation with Politecnico di T orino Opening ceremony on October 19, 2011 25 8% R&D on sales (%) 7% 20 6% 5% 5% 15 15 Over 1 0 % of R&D expenses (M€) 4% headcount em ployed in 10 3% R&D 2% 5 1% 0 0 0% 0% 2004 2005 2006 2007 2008 2009 2010 30/06/2011 18

“H “However beautiful the strategy, b tif l th t t you should occasionally look at the results”. Winston Churchill

Financial statements as at June 30, 2011 J BALANCE SHEET (figures in Euro thousand) (f E h d) 30/06/2011 30/06/2011 31/12/2010 31/12/2010 Tangible and intangible assets 75,053 76,091 Goodwill 102,504 102,677 Other non current assets Other non current assets 13 524 13,524 13 252 13,252 NON CURRENT ASSETS 191,081 192,020 Inventory 88,881 70,151 Trade receivables Trade receivables 63 540 63,540 64 595 64,595 Trade payables and down payments (99,434) (78,163) NET WORKING CAPITAL 52,987 56,583 Other current assets and liabilities (7,267) ( , ) (4,923) ( , ) Other non current liabilities (23,803) (26,167) NET INVESTED CAPITAL 212,998 217,513 NET DEBT 140,770 141,268 NET EQUITY 72,228 76,245 FINANCIAL SOURCES 212,998 217,513 20

Financial statements as at June 30, 2011 J PROFIT & LOSS (figures in Euro thousand) 30/06/2011 30/06/2010 SALES 127,679 114,512 VALUE OF 143,736 122,762 PRODUCTION EBITDA 7,302 2,358 % on sales 5.7% 2.1% EBIT 2,459 (2,677) % on sales 1.9% (2.3%) EBT (2,421) (5.317) % on sales (1.9%) (4.6)% NET INCOME CO (3, (3,421) ) (5.047) (5.0 7) % on sales (2.7%) (4.4)% 21

Net debt as at June 30, 2011 J Jun 30,2011 J , Dec 31, 2010 , Finpolar Debt 128.628 128.048 Derivatives 6.528 7.830 Leasing & Factoring 3.473 2.887 Other financial liabilities 18.878 17.341 Cash (16.737) (14.838) NET DEBT 140.770 141.268 160.000 30/06/11 140.000 31/12/10 120.000 100.000 80.000 60.000 40.000 20.000 0 NET INDEBTEDNESS FINPOLAR DEBT DERIVATIVES LEASING & FACTORING OTHER FINANCIAL CASH ‐ 20.000 20 000 LIABILITIES 22