From melting steel to 3D-printing: investing in the

t h l d i G “Mitt l t d”technology-driven German “Mittelstand”

German Equity Forum Frankfurt/Main, 25 Nov. 2014

1. Business model

GESCO Group – an association of industrial SMEs with market and technology leaders

Segments tool manufacture / mechanical engineering Segments tool manufacture / mechanical engineering and plastics technology

Currently 17 operating subsidiaries under the roof of GESCO AG as a holding company

W thi k d t i t i bl d t i l We think and act in a sustainable and entrepreneurial manner

We do business in established sectors with innovative technologies

We provide technology “made in Germany” for global markets

GESCO is comprised of adaptable independent operating units GESCO is comprised of adaptable, independent operating units that benefit from being part of a strong group

GESCO AG a long term investorGESCO AG – a long term investor and a safe haven for succession issues

We acquire and develop industrial SMEs an a long-term basis –exit is not part of the business modele t s ot pa t o t e bus ess ode

We take over majorities, almost always 100 %

Most takeovers are part of succession planning

The new managing directors invest up to 20 % in the company they run (“entrepreneur companies”)

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1. GESCO Group

The GESCO share offers a focussed portfolio of 17 “Hidden Champions” serving broadly diversified customer sectors

2%%

Construction, air conditioning, sanitary industry4%5%5%8%

4%Consumer goodsEnergy / supply

Ch i l / h i l i dFoundries and rolling millsElectrical, medical technology, household goods

, g, y y

→

8%

8%

12%Other

Agricultural engineering

Chemical / petrochemical industry

13%

14%

Iron, plate and metal processing,tool construction

25%

Passenger and commercial vehicles

Machine and plant construction

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1. The 4 biggest companies (sales and staff: FY 2013)

Dörrenberg Edelstahl GmbH

• Leading European specialist for tool steel

SVT GmbH

• Systems for (un)loading liquids and gases p

• Steel mill, trading, mould castings and surface technology

q g

• Specialty LNG: No. 2 worldwide

• Export ratio: 80 %• Strong internationalization

• Sales € 162 m, staff 495

• Export ratio: 80 %

• Sales € 52 m, staff 187

MAE Maschinen- und Apparatebau Götzen G bH

Frank Walz- und Schmiedetechnik Group

GmbH

• World market leader for straightening machines and wheel set presses

• Europe‘s leading forge for wearparts for the agricultural industry

and wheel set presses

• Highly innovative

• Acquired US competitor i J 2014

• 70 % of sales to OEMs, 30 % to wholesale and farmers

S l € 34 t ff 297

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in Jan. 2014

• Sales € 34 m, staff 140

• Sales € 34 m, staff 297

1. The 4 biggest companies (sales and staff: FY 2013)

Dörrenberg Edelstahl GmbH

• Leading European specialist for tool steel

SVT GmbH

• Systems for loading liquids and gases p

• Steel mill, trading, mould castings and surface technology

q g

• Specialty LNG: No. 2 worldwide

• Export ratio: 80 %• Strong internationalization

• Sales € 162 m, staff 495

• Export ratio: 80 %

• Sales € 52 m, staff 187

MAE Maschinen- und Apparatebau Götzen G bH

Frank Walz- und Schmiedetechnik Group

GmbH

• World market leader for straightening machines and wheel set presses

• Europe‘s leading forge for wearparts for the agricultural industry

and wheel set presses

• Highly innovative

• Acquired US competitor i J 2014

• 70 % of sales to OEMs, 30 % to wholesale and farmers

S l € 34 t ff 297

5

in Jan. 2014

• Sales € 34 m, staff 140

• Sales € 34 m, staff 297

1. Two very special companies (sales and staff: FY 2013)

Setter Group

• Paper and plastic sticks for the sweets and hygienic

C.F.K. CNC-Fertigungs-technik Kriftel GmbH

• Leading centre in high-industries, world market leader for paper sticks

• 90 % export ratio

g gprecision wire erosion and die sinking

• Cutting-edge production • 20 bn sticks produced in Germany each year

• 60 bn sticks produced

line, 40 machines

• Advanced laser meltingsystems (3D printing) forfunctional prototypesin US on Setter technology

• Sales € 15 m, staff 60

functional prototypes, medical implants etc.

• Sales € 7 m, staff 49

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2. Financial year 2014/2015 (1 Apr. 2014 – 31 March 2015)

General situation:

Good start into the new FY with positive signals from various regions and customers, VDMA was optimistic and German GDP was supposed to grow

But the difficult situation at two subsidiaries turned out to burden earnings significantly:significantly:

Protomaster GmbH, produces car body parts and assemblies for small and medium-scale series on self-produced tools

MAE M hi d A t b Göt G bH i t ti l k t l d f MAE Maschinen- und Apparatebau Götzen GmbH, international market leader for automatic straightening machines and wheel set presses

Both companies faced a dramatic increase in customer demand and i t ki i ti d i t trequirements, making reorganisations and investments necessary

Since summer 2014 more subdued economic environment, the Russia/Ukraine crisis and other geopolitical risks affect general business climate and customers’ willingness to invest

VDMA cut outlook for production growth in 2014 from 3 % to 1 %

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2. Financial year 2014/2015 – H1 (subsidiaries‘ operating months Jan. to June)

H12013/2014

H12014/2015 Change

Order intake € m 211.9 226.6 6.9 %

satisfactorycustomer demand

Order intake € m 211.9 226.6 6.9 %

Sales € m 217.8 220.1 1.1 %EBITDA € m 23.7 20.1 -15.4 % burdened by the two

restructuring casesEBIT € m 15.3 10.8 -29.3 %Group netincome after

i it i t t € 8 6 5 5 36 4 %high investments in prev and current FY minority interest € m 8.6 5.5 -36.4 %

EPS acc. to IFRS € 2.60 1.65 -36.4 %

prev. and current FY weigh on EBIT

31/03/2014 30/09/2014

Equity € m 176.6 176.5 -0.1 % always in Equity ratio % 46.5 44.5 -Liquid funds € m 38.8 37.1 -4.5 %

your focus: a strong

balance sheet

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2. Financial year 2014/2015 – Q3 (subsidiaries‘ operating months July to Sept.) and Outlook

Q3: operating business on a satisfactory level Order intake approx. € 113 million (prev. year’s period: € 113.3 million) Sales approx. € 116 million (prev. year’s period: € 119.5 million)

120 000

130.000

140.000

Sales approx. € 116 million (prev. year s period: € 119.5 million)

90.000

100.000

110.000

120.000

80.000Q1 Q2 Q3 Q4 Q1 Q2 Q3

2013/2014 2014/2015 ─ Order intake─ Sales

Outlook reduced (ad-hoc notification from 4 Nov. 2014) General economic environment continues to be subdued Lower rate of capacity utilisation due to the economic situation, postpone-

ment of orders, changes in order mix which negatively impact margins Frank Walz- und Schmiedetechnik GmbH burdened by Russia/Ukraine crisis

stronger than expected Restructuring of Protomaster burdens earnings stronger than expected g g g p

Weak result of H1 cannot be compensated for in H2 as previously expected 9

2. Financial year 2014/2015 – Outlook

2013/2014Actualfigures

2014/2015e

TargetJune 2014

2014/2015e

TargetAug. 2014

2014/2015e

TargetNov. 2014

Target figures

g g

Group sales € million 453.3 470 to 480 470 455 to 460

Group net income for the yearafter minority interest

€ million 18.1 17.5 to 18.5 17.5 14.5 to 15.0

Earnings per share acc. to IFRS

€ 5.45 5.26 to 5.56 5.26 4.36 to 4.51

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2. M&A

Currently two projects in progress

One direct acquisition by GESCO AG in Germany One strategic enhancement of a subsidiary abroad

DD or negotiations have proceeded at least oneDD or negotiations have proceeded, at least one of these targets should be decided by end of FY

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3. The GESCO share

Freefloat: 86.4 %

Stefan Heimöller, entrepreneur, member of the supervisory board: 13.6 %

Investmentaktiengesellschaft für langfristige Investoren TGV (voting rights announcement from 30 Oct. 2014), part of free float: 3.23 %

13.6% Stefan Heimöller

3 23% Investmentaktienges3.23% Investmentaktienges.

36.8% other institutional investors46.4% retail investors

Dividend policy: payout ratio ~ 40 % of group net income after minority interest

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3. Share price development (in %)

120

100

110

GESCO

SDAX

GESCO vs. SDAX, 1 year80

90

SDAX

, y

180

200

220

80

100

120

140

160

GESCO

SDAX

GESCO vs. SDAX, 5 years

400

500

100

200

300

GESCO

SDAX

13GESCO vs. SDAX, 10 years0

Facts and figures on GESCO AG

Founded: 1989Share capital: € 8,645,000Shares: 3 325 000 registered sharesShares: 3,325,000 registered sharesFree float: 86.4 %Stock markets: Xetra; Frankfurt (regulated market);

Berlin, Düsseldorf, Hamburg, Hanover,Berlin, Düsseldorf, Hamburg, Hanover, Munich, Stuttgart (open market)

Sec. identification number: A1K020ISIN: DE000A1K0201IPO: 24 March 1998 Index: SDAX End of financial year: 31 MarchEnd of financial year: 31 MarchDesignated sponsors: equinet Bank AG

Close Brothers Seydler Bank AG

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GESCO Group overview

Company Sales 2013€‘000

Staff31/12/2013

GESCO AG shareholding

Astroplast Kunststofftechnik GmbH & Co KG 14 282 77 80%Astroplast Kunststofftechnik GmbH & Co. KG 14,282 77 80%

Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 8,901 114 100%

C.F.K. CNC-Fertigungstechnik Kriftel GmbH 6,740 49 80%

Dömer GmbH & Co KG Stanz und Umformtechnologie 13 716 102 100%Dömer GmbH & Co. KG Stanz- und Umformtechnologie 13,716 102 100%

Dörrenberg Edelstahl GmbH 161,782 495 90%

Frank Group 33,547 297 100%

Franz Funke Zerspanungstechnik GmbH & Co KG 16 130 81 80%Franz Funke Zerspanungstechnik GmbH & Co. KG 16,130 81 80%

Haseke GmbH & Co. KG 12,359 61 80%

Hubl GmbH 10,257 106 80%

Georg Kesel GmbH und Co KG 10 723 68 90%Georg Kesel GmbH und Co. KG 10,723 68 90%

MAE Maschinen- und Apparatebau Götzen GmbH 34,078 140 100%

Modell Technik GmbH & Co. Formenbau KG 13,979 106 100%

Protomaster Riedel & Co GmbH 7 700 85 82 17%Protomaster Riedel & Co. GmbH 7,700 85 82.17%

Setter Group 14,773 60 100%

SVT GmbH 51,770 187 90%

VWH Vorrichtungs und Werkzeugbau Herschbach GmbH 10 809 105 80%VWH Vorrichtungs- und Werkzeugbau Herschbach GmbH 10,809 105 80%

Werkzeugbau Laichingen Group 26,573 182 85%15

Financial calendar and investor relations contact

Financial calendar

14 November 2014 Q2 figures (01.04. to 30.09.2014)

25/26 November 2014 German Equity Forum, Frankfurt/Main

10 December 2014 Mid Cap Conference Close Brothers Seydler, Geneva

10 December 2014 Münchner Kapitalmarkt-Konferenz, Munich

13 February 2015 Q3 figures (01.04. to 31.12.2014)

25 June 2015 Annual Accounts Press Conference and Analysts’ Meeting

14 August 2015 Q1 figures (01.04. to 30.06.2015)

18 August 2015 Annual General Meeting

13 November 2015 Q2 figures (01.04. to 30.09.2015)

Investor Relations

GESCO AG Phone: +49 202 24820-18 Investor Relations Fax: +49 202 24820-49Oliver Vollbrecht E-mail: info@gesco.deJohannisberg 7 Internet: www.gesco.de 42103 WuppertalGermany

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