PRI MA I NDUSTRI E GROUP PRI MA I NDUSTRI E TAKI NG OFF AGAI N - PowerPoint PPT Presentation

PRI MA I NDUSTRI E GROUP PRI MA I NDUSTRI E TAKI NG OFF AGAI N AFTER A TOUGH LANDI NG March 2 0 1 0

PRI MA HI GHLI GHTS • Leading global player in laser and sheet metal machinery (among the top 4 players w orldw ide) . • Com prehensive product range in laser systems and sources, punching, shearing, bending and automation bending and automation. • Market leader in 3 D for: • autom otive m arket • aerospace m arket • Over 3 0 years experience in the sector. • ~ 1 0 ,0 0 0 m achines and system s installed in 6 0 countries • Manufacturing facilities in I taly, Finland, USA, China • W orldw ide sales and service netw ork 2 2

PRI MA MAI N FI GURES 2 0 0 9 revenues by sector Main figures Sales (Euro million) Sales (Euro million) 1 1 % 2 7 % Laser business 2 1 % Sheet metal machinery 367 After sale After sale 400 400 4 1 % Electronics 350 FP Group 300 232 232 Prima Group 184 Figures have been restated vs. Segment Report 250 2 0 0 9 revenues by geography 176 200 127 127 147 147 110 150 97 1 9 % 183 2 2 % Italy 100 1 7 % Europe 105 105 4 2 % 4 2 % North America 50 Asia & rest of the world 0 2004 2005 2006 2007 2008 2009 3

FY 2 0 0 9 HI GHLI GHTS • Group revenues at 2 3 1 .9 M€ , down 37% over a particularly positive 2008 (-40% on a yoy basis), with severe decline in all business sectors. • All the geographical areas were strongly affected by the revenues reduction; only Asia & rest of the world limited the drop. i & f h ld li i d h d • Notwithstanding the extremely negative context, Group EBI TDA w as positive 6 .2 M€ ( + 2 7 % on revenues) thanks to: M€ ( + 2 .7 % on revenues) , thanks to: • Significant reduction of headcount and labour costs • Costs reduction measures undertaken by all Group companies • Outcome of the EQT settlement Q • Net loss of 8.7 M€ (against a profit of 5.5 M€ in 2008). • Net debt improved to 150.1 M€ from 161.6 M€ (at Dec.31 ‘08) with positive effects N t d bt i d t 150 1 M€ f 161 6 M€ ( t D 31 ‘08) ith iti ff t from: • EQT settlement • Restatement of the Kauhava lease contract • Restatement of the Kauhava lease contract • Net debt does not include the effect of the capital increase , successfully completed in February 2010. 4

ORDERS I NTAKE Order acquisition Jan ‘0 8 – Feb ‘1 0 Better m onthly order acquisition since Decem ber ‘0 8 Decem ber 0 8 5

THE YEAR 2 0 0 9 : THE FI GURES BALANCE SHEET PROFI T & LOSS (figures in Euro 3 1 / 1 2 / 2 0 0 9 3 1 / 1 2 / 2 0 0 8 ( figures in Euro thousand) thousand) 31/ 12/ 09 31/ 12/ 08 (* ) Tangible and intangible assets 77.944 86.252 Goodwill 102.511 102.585 Other non current assets Other non current assets 10 515 10.515 13 222 13.222 SALES 231,886 367,276 NON CURRENT ASSETS 1 9 0 .9 7 0 2 0 2 .0 5 9 Inventory 71.808 106.187 VALUE OF 222,193 376,408 PRODUCTI ON Trade receivables 58.823 72.266 Trade payables and down payments Trade payables and down payments (71 094) (71.094) (98 088) (98.088) 6 243 6,243 31 786 31,786 EBI TDA EBI TDA NET W ORKI NG CAPI TAL 5 9 .5 3 7 8 0 .3 6 5 % on sales 2.7% 8.7% Other current assets and liabilities (16.964) (24.957) (3,863) 23.233 EBI T Other non current liabilities (18.474) (20.735) % on sales (1.7)% 6.3% NET I NVESTED CAPI TAL S C 2 1 5 .0 6 9 5 0 6 9 2 3 6 .7 3 2 3 6 3 (9.644) 11,730 EBT NET DEBT 1 5 0 .0 9 1 1 6 1 .6 4 5 % on sales (4.2)% 3.2% NET I NCOME (8,696) 5.476 NET EQUI TY Q 6 4 .9 7 8 7 5 .0 8 7 % on sales (3.8)% 1.5% FI NANCI AL SOURCES 2 1 5 .0 6 9 2 3 6 .7 3 2 ( * ) = FP consolidated for 1 1 m onths only 6 6

THE CRI SI S OF 2 0 0 9 – OVERVI EW Association Country Date Newsflow “ Orders collected by Italian machine Orders collected by Italian machine ITALY 26/ 01/ 10 Tools manufacturers were down 46.9% compared to 2008.” “Over the year 2009 as a whole, the GERMANY GERMANY 17/ 02/ 10 17/ 02/ 10 G German machine tool industry lost 55 hi t l i d t l t 55 per cent of its order volume compared to the boom year of 2008. “ “Orders of industrial laser equipment and systems in 2009 are reported at 24/ 02/ 10 USA $259.9 million, a decrease of 45.3% from 2008, according to AMT .“ 7

THE CRI SI S OF 2 0 0 9 – COMPETI TORS OVERVI EW Company Date Newsflow Net sales were down 50 6% for the nine months ended Dec Net sales were down 50.6% for the nine months ended Dec. 04/ 02/ 010 31, 2009. “Sheet metal processing was strongly affected by the low order intake in the earlier part of the year. At the end of 12/ 10/ 09 August 2009 sales were CHF 226.3 million (-55.9% )”. “In the 2008/ 2009 fiscal year that ended June 30, 2009 the 8 Group posted a 35 percent decline in orders received to 1 4 Group posted a 35 percent decline in orders received to 1.4 20/ 10/ 09 20/ 10/ 09 billion Euros. Sales fell from 2.14 to 1.66 billion Euros”. “For the twelve months ended Sep. 30, 2009 net sales totaled $349.6 million, a decrease of 39% from the comparable 5/ 11/ 09 period in 2008” 8

W HAT’S AHEAD OF 2 0 0 9 ? Source Date Comment •“New orders of machine tools for 02/ 10 the 4 th quarter 2009 in CECIMO countries confirm that the turnaround point may be behind our industry. Machine Tool demand trend •Most macroeconomic experts agree th t that we are currently experiencing a tl i i modest recovery in Europe. Forecasts for 2010 have been revised upward in most countries, especially in China and the US. especially in China and the US •Time lag is a major macroeconomic issue for the Machine Tool industry. Economy will need to recover before industry starts to re-invest in new industry starts to re-invest in new equipment and therefore in new machine tools. The “multiplier” effects of capital investment on productivity would be experienced productivity would be experienced later in the cycle.” 9

W HAT’S AHEAD OF 2 0 0 9 ? Source Source Date Date Comment Comment •“Machinery and equipment is closely related with the global cycle 01/ 10 and industrial production – disastrous 2009 and not much p investment expected in 2010. • Recovery will arrive after inventories drained”. 1 0

W HAT’S AHEAD OF 2 0 0 9 ? Source Date Comment •“2009 is clearly shaping up to be a very difficult year for the Autumn 2009 global machine tools market. We estimate that, excluding the g , g Chinese market, global consumption is likely to fall by about 38% this year. • the good news for prospects for the global market is that we now seem to be at the bottom of the recession. • 2010 will be a year of transition” 1 1

W HAT’S AHEAD OF 2 0 0 9 ? Source Date Comment “We also see 2010 as a recovery year for lasers, and in general February would expect double-digit increases for those in our coverage p g g 2010 2010 universe as most companies come off the single worst yearly decline in their history. Fiber lasers should also gain share against solid-state lasers in low-power applications, but we believe gains vs, CO 2 lasers in high-power laser metal cutting will be somewhat limited as this is a fairly mature market that has historically been slow to accept new technologies”. 1 2

LEVELLI NG TO RESTART GROW TH Main restructuring operations Kauhava – Finland Finn-Pow er Oy • Shut down of Vilppula plant FI NLAND Finn-Pow er Oy • Relocation of activities to Kauhava and suppliers (outsourcing) FTE employee FTE employee -40 (Vilppula closing) 40 (Vilppula closing) reduction -70 (Kauhava restructuring) Transfer of all activities (except Cologna V.ta ( VR) – I taly I TALY FP I talia Finn-Pow er I talia S r l Finn-Pow er I talia S.r.l. Demo Center) from Fiesse to ) f Cologna Veneta FTE employee -40 reduction reduction Prim a • Headcount scaling down Headcount scaling down I ndustrie & • Shut down of offices in Bari, Prim a Bologna and Padua Electronics FTE employee FTE employee -55 reduction 1 3

LEVELLI NG TO RESTART GROW TH Reorganizing sales/ service network • Transfer of Prima Laser Systems division to PFP NA. NORTH AMERI CA P FP N.A. Unified sales % service network for 2D laser and sheet metal fabrication machinery. • Focus of PNA on Convergent and Laserdyne divisions. • Synergies between Prima 3D and Laserdyne for aerospace and automotive markets. Arlington Heights ( I L) – USA Chicopee ( MA) – USA Cham plin ( MN) – USA Prim aFinn-Pow er NA Prim a NA – Convergent Div. Prim a NA – Laserdyne Div. • Merger of FP GmbH with PI GmbH, headquartered in Frankfurt P FP Gm bH EUROPE • Reduction of former FP GmbH offices in Munich •Transfer of Prima Branch Office to PFP France P FP France • Relocation into a common facility in Paris • Relocation into a common facility in Paris • Transfer of Prima Branch Office to PFP Iberica P FP I berica • Relocation into a common facility in Barcelona • Shut down of loss-making JV in Shenyang • Shut down of loss-making JV in Shenyang SPLM SPLM ASI A 1 4

LEVELLI NG TO RESTART GROW TH Total headcount reduction = perm anent & long term lay-offs 1 8 0 0 = tem porary lay-offs ( * ) -1 4 % 1 6 0 0 -2 5 % 67 67 1 4 0 0 1 4 0 0 120 1709 1663 1 2 0 0 1562 1276 1276 1 0 0 0 1 0 0 0 Units 8 0 0 1463 6 0 0 4 0 0 2 0 0 0 3 0 / 0 6 / 2 0 0 8 3 1 / 1 2 / 2 0 0 8 3 0 / 0 6 / 2 0 0 9 3 1 / 1 2 / 2 0 0 9 * = FTE preliminary estimated on a yearly basis labor cost. 1 5