Slide 1: Roadshow STAR Company Results
ROADSHOW STAR Company Results Milan - February 27, 2002
Slide 2: Introduction
Introduction 2
Slide 3: Biesse in a Snap-shot
BIESSE IN A SNAP-SHOT Biesse produces machine tools and systems for the secondary processing of wood, glass and marble, together with associated numerical controls, software and precision components Leading worldwide player based in Pesaro (Italy), a production district for furniture, kitchens and h
Slide 4: Key Factors
KEY FACTORS Biesse has achieved operating excellence due to the following key factors: extensive direct one-stop-shop strong flexibility in the integrated sales network for superior commitment in business model supply and support quality R&D network capabilities products 4Superior sales growth 4Soli
Slide 5: Market Position: Global Leadership
GLOBAL LEADERSHIP MARKET POSITION 1st the world’s largest manufacturer of computer numerically controlled (CNC) centres for wood and glass working 2nd largest Italian producer of automated woodworking machinery 2nd largest worldwide provider of turn-key systems for major companies 4th largest manufa
Slide 6: Overview of Biesse Group
Overview of Biesse Group 6
Slide 7: Biesse Group Structure
BIESSE GROUP STRUCTURE Biesse Wood Division Intermac HSD Glass & Marble Division Mechatronics Division Schelling Systems Division 7
Slide 8: Group Structure: Wood Division
BIESSE GROUP STRUCTURE Biesse Wood Division 41,530(1) employees 4Sales of € 229.0m (FY 2001) 4The division designs, manufactures and markets a full range of machines for the wood-working industry 4Production focused on computer-controlled machines, which represent the segments with the highest growt
Slide 9: Group Structure: Glass & Marble Division
BIESSE GROUP STRUCTURE 4239 employees 4Sales of € 52.7m (FY 2001) 4This Division designs, manufactures and markets a full range of machines for the Intermac glass&marble-working industry Glass & Marble Division 4Intermac is now the world’s recognised leader in the production of CNC glass and marble
Slide 10: Group Structure: Mechatronics Division
BIESSE GROUP STRUCTURE 484 employees 4Sales of € 21.8m (FY 2001) 4This Division is Biesse’s answer to its need of technological HSD independence, particularly for key Mechatronics Division strategic components 10
Slide 11: Group Structure: Systems Division
BIESSE GROUP STRUCTURE 4336 employees 4Sales of € 65.4m (FY 2001) 4This Division designes engineered solutions for major wood panel manufacturers/users that have complex production, technological and logistical needs and want to optimise production Schelling Systems Division 11
Slide 12: Sales Breakdown
SALES BREAKDOWN December 2001 By division By region Mechatronics 5,9% RoW 17,3% Systems 17,7% North America 18,2% Glass/Marble Wood EU 14,3% 62,1% 64,5% Net sales: € 354 m 100% 100% 50% 50% 0% 0% 1998 1999 2000 2001 1998 1999 2000 2001 Wood Glass Systems Mech. EU NA ROW 12
Slide 13: Customer Segmentation
CUSTOMER SEGMENTATION CUSTOMERS Small and medium Large DEMAND businesses businesses Modular production Modular production based on based on Tailor-made SUPPLY standardised standardised production components components 13
Slide 14: Business Model – Machines
BUSINESS MODEL – MACHINES(1) International network communicates customer feedback PRODUCT PLAN SALES AND PRODUCTION AND DEVELOPMENT DISTRIBUTION 8 Marketing 8 Integrated network 8 All major markets 8 R&D living covered 8 Market demand 8 Internal and external production 8 Technological & Economic via
Slide 15: Business Model – Systems
BUSINESS MODEL – SYSTEMS SALE ENGINEERING PRODUCTION 8 Direct marketing 8 Systems 8 Reduced lead time 8 Solution engineering development and enhanced productivity via a 8 Understanding the modular approach clients needs Creation of tailor-made systems for individual clients 15
Slide 16: Main Clients
MAIN CLIENTS Some of our major clients nobilia 16 … with an extremely wide potential customer base
Slide 17: Sales and Distribution
SALES AND DISTRIBUTION 8Biesse’s worldwide presence enables it to 8cover all the major outlet markets 8provide extensive customer service and support (24-hour on site) 8closely monitor market trends and competitive behaviour 820 subsidiaries and sales offices in 16 countries 8about 250 distributors
Slide 18: Market Scenario
Market scenario 18
Slide 19: The Market – Competitive Scenario
THE MARKET – COMPETITIVE SCENARIO THE MARKET BIESSE 8 Fragmented market, but showing 8 Biesse, a leading player in its main strong signs of consolidation areas of business, is ready to lead the market’s consolidation drive 8 Broad array of products, ranging from manual to highly automated 8 Already
Slide 20: The Market – Overview
THE MARKET – OVERVIEW 2001 Worldwide market demand Market (€m) 1995 2001 CAGR 95/01 00/01 Systems Wood 2,004 2,767 5.5% 3.0% 5,4% Mechat. 16,8% Glass & Marble 294 396 5.1% 5.0% Systems 183 219 3.1% -15.0% Glass/ Marble 9,7% Mechatronics 310 682 14.0% 10.0% Wood 68,1% Total 2,791 4,064 6.5% 3.1% Sour
Slide 21: Biesse's Superior Growth
BIESSE’S SUPERIOR GROWTH 1998 - 2001 Turnover Wood Glass and Marble 14% 12,2% 12,9% 14% 12% 12% 10% CAGR % CAGR % 10% 8% 8% 6% 4,7% 5,5% 6% 4% 4% 2% 2% 0% 0% Market Biesse Market Biesse Systems Mechatronics 19,0% 20% 29,0% 35% 15% 30% CAGR % CAGR % 25% 10% 20% 15,8% 15% 5% 10% 0,0% 5% 0% 0% Market B
Slide 22: Biesse's Market Shares
BIESSE’S MARKET SHARES 2001 Wood Glass and Marble Total Market € 2,821m Biesse Sales € 229m Total Market € 401m Biesse Sales € 52.7m Lignum 20,9% Bavelloni Weining 17,1% 11,2% Biesse Rest of SCM 13,3% 8,7% Rest of the the Market Market 50,9% Biesse Bottero 57,3% 12,3% 8,3% Systems Mechatronics Total
Slide 23: Recent Acquisitions
Recent Acquisitions 23
Slide 24: Recent Acquisitions: Allwood, Australia
RECENT ACQUISITIONS Date December 2001 Target Allwood, Australia (Line of business) Distribution of wood-processing equipment in Australia Price Euro 2,8 million (up to Euro 3,5 million depending on 2002-2003 results) Rationale - Consolidate the presence in a growing market - Exploit Allwood wide-re
Slide 25: Recent Acquisitions: Diamut, Italy
RECENT ACQUISITIONS Date December 2001 Target Diamut, Italy (Line of business) Design and production of diamond tools Price Euro 6,4 - 7,0 million (price definition upon completion of the audit) Rationale Exploit Glass & Marble distribution network to increase market shares 25
Slide 26: Recent Acquisitions: CNI, Italy
RECENT ACQUISITIONS Date October 2001 Target CNI, Italy (Line of business) Design and production of digital-control equipment for machine tools Price Euro 1,9 million (price definition upon completion of the audit) Rationale Bolster Mechatronics Division, also through the application to new sectors
Slide 27: Financials
Financials 27
Slide 28: Group Performance: 1999-2001 (Pro-forma)
GROUP PERFORMANCE: 1999-2001 (Pro-forma) 400 20% 300 16% € m 12% 200 8% 100 4% 0 0% 1999 2000 2001 S ales E B IT D A % E B IT % Year ended 31 December 1999 2000 2001 Net Sales (€m) 276.0 344.0 353.8 Growth 15.6% 24.6% 2.8% EBITDA (€m) 32.5 45.0 25.4 as % of net sales 11.8% 13.1% 7.2% EBIT (€m)(1) 24
Slide 29: Sales by Division: 1998-2001 (Pro-forma)
SALES BY DIVISION : 1998-2001 (Pro-forma) Wood Glass and Marble 250 229,0 20% 60 5,2% 48,4 52,8 6% 213,8 185,8 50 42,4 5% 200 162,0 15% 36,6 40 4% 150 14,9% 5,2% (€ million) (€ million) 13,3% 15,3% 10% 30 3% 100 20 2% 8,0% 5% 50 10 1% 1,2% 1,0% 0 0% 0 0% 1998 1999 2000 2001 1998 1999 2000 2001 Net S
Slide 30: Backlog: 1998-2001
BACKLOG : 1998-2001 150 100 €m 50 0 1998 1999 2000 2001 Backlog 1998 1999 2000 2001 Backlog (€m) 70.0 102.6 122.0 113.0 30
Slide 31: Net Debt: 1999-2001 (Pro-forma)
NET DEBT: 1999-2001 (Pro-forma) 150 100 €m 50 0 1999 2000 2001 Net debt 1999 2000 2001 Net Debt (€m) (*) 70.5 79.8 86.0 (*) In 1999 and 2000 includes the conversion of bonds held by Werner Deuring into shares 31
Slide 32: Shareholders' Structure
Shareholders’ Structure 32
Slide 33: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE June 2001: Listing on the Milan Stock Exchange, STAR Segment December 2001: Approval of a buy-back plan up to 10% of share capital within 18 months Biesse Holding S.p.A. Free float 25.5% 35.0% Werner Deuring P.S. Biesse Finance B.V. 4.8% 34.7% 33 Share capital: 27,393,042 sha
Slide 34: Conclusion
Conclusion 34
Slide 35: Objectives & Strategy
OBJECTIVES & STRATEGY 8Recover profitability 8Play a prominent role in the consolidation process of the industry 8Consolidate leadership position via acquisitions 8Leverage on the existing distribution structure to develop sales of other divisions 8Strong control on fixed costs 8Expand into new geog
Slide 36: For further information, please contact
For further information, please contact: Luca Selvatici Group Controller and Investor Relator Biesse S.p.A. Tel: (+39 0721) 439 105 e-mail: luca.selvatici@biesse.it 36