IR Top Lugano Small & Mid Cap Investor Day

23rd September 2016

2

Copyright © SITI B&T Group, All rights reserved.

SITI B&T - Group at a glance

• Group core business

• Covers all phases of the production process:

from preparation of raw materials, to packaging

of finished products

• Covers all technological processes for production

of sanitaryware

• Innovative production department molds and

complete know-how of high pressure pressing

• Personalized technical assistance and

maintenance

• Plant upgrades for energy efficiency and savings

• Spare Parts

WORLD LEADER IN CERAMIC PLANTS, WITH A SINGLE BU COVERING THREE DIFFERENT PRODUCT LINES

TILE

SANITARY

WARE

Strong specialization in plant and machinery for producing ceramic tiles, covering all stages of the production process

FU

LL V

ALU

E

CH

AIN

CO

VE

RA

GE

Group sales revenues

2015: 172 M€

Group EBITDA:

17,3 M€

Revenues by

region

CUSTOMER

CARE

27.6%

PLANTS

72.4%

FAR EAST

(INCL.CHINA)

11%

AMERICAS

9% ITALY

21%

EUROPE

16%

EAST

EUROPE

11%

MIDDLE EAST &

N.AFRICA

32%

CUSTOMER

CARE

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Copyright © SITI B&T Group, All rights reserved.

Coverage of the entire value chain SITI B&T GROUP COVERS THE ENTIRE VALUE CHAIN FOR PLANTS AND MACHINERY FOR PRODUCING

TILES AND SANITARY WARE

SERVICES CENTRALIZED IN THE HOLDING COMPANY:

TILE SANITARY

WARE

CUSTOMER

CARE

THE GROUP'S KEY STRENGTH CONSISTS IN BEING AN ENGINEERING, LOGISTICS AND SERVICES COMPANY

R&D Coordination Technological Center Finance and control

coordination

Commercial coordination

Preparation raw

materials Presses

Digital dec.

Kilns and dryers

Handling &

packaging

Cutting & Finishing

Complete plants

High-Molds

pressure

Spare parts,

upgrading

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Copyright © SITI B&T Group, All rights reserved.

FINANCIAL RESULTS

Turnover, Ebitda

TURNOVER 2010 - 2016

EBITDA 2011 - 2015

0

2

4

6

8

10

12

14

16

18

20

2011 2012 2013 2014 2015

Million €uro

0

20

40

60

80

100

120

140

160

180

200

2010 2011 2012 2013 2014 2015 2106

CAGR + 12%

Turnover 2016

expected in

187 millions €

Ebitda average

10% on

revenues

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Copyright © SITI B&T Group, All rights reserved.

COMMERCIAL AND

CUSTOMER CARE OFFICES

FOREIGN COMPANIES

MANUFACTURING

FOSHAN B&T PIONEER LTD:

production of machinery for the ceramics industry for the Asian and Indian markets, the Far East and the Indian subcontinent

B&T IBERICA:

commercial coverage and customer care of Tile products for the Spanish area, South America and North Africa

B&T DO BRASIL:

currently being developed to become the production and commercial hub for the Brazilian market

SITI B&T GROUP MEXICO, B&T EGYPT, PT INDONESIA, USA DIGITAL AND SITI B&T INDIA:

operate as commercial premises and Customer Care services hubs

B&T Iberica

B&T de Mexico

SITI B&T- India

PT SITI - Indonesia

Algeria

Germany

SITI B&T

Moscow

Turkey

Iran

Thailand

B&T do Brasil

Foshan SITI

B&T China

Foreign markets presence

Italy - Formigine

Modena

HEADQUARTERS

USA Digital

SITI B&T

Egypt

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Copyright © SITI B&T Group, All rights reserved.

The Technology Center

• PERMANENT EXHIBITION OF NEW TECHNOLOGIES

• TRAINING FOR CUSTOMERS

• PILOT PLANTS FOR R&D PROJECTS

• GROUP R&D EXPENDITURE IN 2015: € 3,5

MILLIONS AND 22 NEW PATENTS

HEADQUARTERS OF R&D AND LABORATORY GROUP

Over 60 people involved in R&D

3,5 mio € invested yearly

More than 20 patents per year

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Copyright © SITI B&T Group, All rights reserved.

Tile COMPOSITION OF A TYPICAL COMPLETE PLANT (1/2)

• Machines and

systems for the

grinding of raw

materials (eg.

mills and

sprayers)

• Dry grinding

• Mill Dryfast®

• Granulator

Grainmix ®

• Hydraulic

presses for

forming tiles

• EVO 3.0

• E-SYNCHRO ®

• FASTY

• START & STOP

• GENIUS BOX ®

• SUPERA ®

• Reduction of

tiles’ moisture

content

• Energy efficiency

• Low

maintenance

• Glazing lines and

complete

decoration

• Kilns for baking tiles

• GREENFIRE XXL ®

• TITANIUM ®

• GREENBURNERS

NEW RELEASES

DEPARTMENT FOR

RAW MATERIALS PRESSES DRIERS

GLAZING

LINES KILNS

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Copyright © SITI B&T Group, All rights reserved.

Tile COMPOSITION OF A TYPICAL COMPLETE PLANT (2/2)

DIGITAL PRINTERS HANDLING AND

STORAGE

VEHICLES

LVG

CUTTING AND FINISHING

MACHINERY

SORTING AND PALLETIZING

LINES

• Production

process-

machinery for

specific loading

and unloading

• EMIBOX ®

• BIBOX XL

• Fork vehicles or

platforms for

handling tiles

• BIG MOOVER

• Cutting, trimming,

polishing, lapping

and coating

• Dry squaring with

high speed

• Cutting and

splitting large

format

• Water-jet cutting

• Lapping plates

• Lines selecting

tiles, box

packaging and

palletizing

• Industrial,

laboratory and

special digital

printers

• New range of

digital printers

G.5 ®

(Generation 5)

• XXL for large

format NEW RELEASES

Machinery stand-alone:

up to 1.5 M €

Complete line:

1.5 - 3 M €

Complete line (large):

3 - 5 M € AVERAGE PLANT:

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Copyright © SITI B&T Group, All rights reserved.

Sanitaryware COMPOSITION OF A TYPICAL COMPLETE PLANT

DEPARTEMENT FOR RAW

MATERIALS MOLDS

HPC CASTING PRESSES

DRYERS GLAZING

LINES KILNS

LGV VEHICLES

Machinery stand alone 150 K€ -1,000 K€

PRODUCT FOCUS

• Plants and

systems for

preparing

doughs and

glazes

• High-pressure

casting resin

molds

• Proprietary

resins

formulation.

Secret Know-

How

• Chamber or

continuous

(tunnel) dryers

• Semiautomatic

or fully

automatic

management

• Robotized

glazing

• Self-learning

robotic

systems

• Kilns for

cooking and

re-cooking

sanitaryware

• Tunnel ovens

(continuous)

or chambers

(intermittent)

• Vehicles for

handling

semi-finished

or finished

products

• Laser-guided

automatic

vehicles

• Presses for

high-pressure

casting

• Latest

machines:

Cubic (2011)

and Circle

(2014)

AVERAGE SALES VALUE: Complete plant from 3 to 10 M €

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Copyright © SITI B&T Group, All rights reserved.

SPARE PARTS CHANGES

AND UPDATES ASSISTANCE

• Components and parts

available for 20 years from

installation for all types of

machines supplied

• Maintenance

• Technical assistance to customer

in optimizing plant operation

Customer care: main activities

• Proprietary R&D and spare

parts: plants and machinery

design to deter repair with

standard components

• Upgrading proposals in

connection with planned

maintenance packages and

spare parts

• Development of remote

diagnostics (Internet of Things)

• Customer services close to clients

• Creation of planned maintenance

packages with discounts on parts

• “Kit” to improve the

performance of older plants

(energy consumption,

productivity)

• Average value: € 30,000 –

€ 40,000 SERVICE FOR REINFORCING

CUSTOMER LOYALTY

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Copyright © SITI B&T Group, All rights reserved.

Demand for ceramic production machinery

• Growing worldwide demand for ceramic tiles: annual average

increase 8% in the last 20 years

• Changes in the product: higher sizes, higher quality

• Lower energy consumption: driers and kilns. Certified

consumption reduction by 30% compared to previous generation

machines.

• Innovative manufacturing solutions: for reducing lot size and

shortening lead times

• Industry 4.0: for an automatic and digital controlled production

DRIVERS OF DEMAND

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Copyright © SITI B&T Group, All rights reserved.

Location of manufacturing facilities to ensure

Made in Italy quality

Foshan (SITI B&T)

Production and assembly

for Asia

Brasil (B&T do Brasil)

Production

(under construction)

Italy (SITI B&T)

Technology Center

Italy (Ancora, Cimas)

Production and assembly for

the finishing sector

Italy (Projecta)

Digital printers assembly

Italy: 100 Operation staff (including 15 in the Technology Center)

China: 50 operation staff in China

Spain: 10 operation staff

Brasil: manufacturing department under construction

Italy production: high-tech segments

Delocalized production: products at competitive cost for emerging markets

Spain (Iberica)

Assembly, testing, recovery

of machines

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Copyright © SITI B&T Group, All rights reserved.

Planned investments and use of proceeds

M&A

50%

R&D for new innovative

products

25%

Worldwide branches for a

growth of Customer

Service

12.5%

Development of production sites

12.5%

M&A opportunity:

• Making the most of opportunities in a consolidating market (generational handover,

economies of scale, turnaround) in order to grow through M&As and increase product

range:

KEY WORD:

GROWTH

M&A activities play an

important role in the

overall investment plan

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Copyright © SITI B&T Group, All rights reserved.

SEPT. 26TH

TECNARGILLA

EXHIBITION

14 NEW

PRODUCTS

PRESENTATION

GAOMING

(CHINA)

NEW FACTORY

Latest News

Kilns Greenfire,

lower

consumption,

lower emissions

CO2

Press HHS (High

Speed Scanning)

scan control and

automatic feed

back to press

Anthropomorphic

Robots with self

programming

tools

To serve Asian markets

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Copyright © SITI B&T Group, All rights reserved.

Over 2,500

customers all

over the world

Headquarters

Foreign company

Commercial office /

customer care

Russia

SPAIN

BRASIL

SAUDI

ARABIA

ALGERIA

AUSTRIA

USA

MEXICO

UNITED

ARAB

EMIRATES

INDONESIA

RUSSIA

Market coverage: strategic customers

The Biggest are choosing SITI-B&T

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Copyright © SITI B&T Group, All rights reserved.

INVESTMENT OPPORTUNITY

Excellent ability to aggregate other

companies proven over time

Proprietary know-how over the entire

value chain

Investments in R&D and innovation

capability

Constant margins and stable financial

strength

Internationally-based sales and

production Large installed base worldwide

with great opportunity for

Customer Service business

SITI B&T Group mission Provide latest generation complete plants for the worldwide

production of ceramic tiles and sanitaryware

A steady and countercyclical

share performance

75%

80%

85%

90%

95%

100%

105%

MIB

AIM

SITI

Thanks for your attention