Bergamo, 23 April 2009

Medium-sized industrial companies in North-WestItaly, 1997-2006 and 2007-2008

Emanuela Salerno, Mediobanca Research Department

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

2

In 2006

1,758 medium-sized

companies (1,733

including groups)

Milan, Brescia,

Bergamo, Turin: Four

provinces account for

59% of value added

by MSEs in North-

West Italy

Medium-sized companies in North-West Italy in 2006

Source: Unioncamere Research Centre

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Growth in North-West ItalyNet changes, 1998-2006: 237 more companies

Bergamo:

1998 1452006 196

Chg. +51

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

What they do in North-West ItalyValue added in €m, 1996-2006 - universe

“Made in Italy” 56%

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Medium-sized companies in North-West Italy: geographicalconcentrationBase value added, 2006

IDs and LPSs (MB-UC classification) Provincial areas

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

MSEs in North-West Italy in districts and LPSs: winnersGrowth 1998-2006 – universe (IDs/LPSs more than 15 companies)

Value added in €m

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Growth in VA from 1997 to2006% chg. – manufacturing, closed group, current prices

Medium-sized enterprises in North-West Italy +37.4

Piedmont and Valle d’Aosta

Liguria

Lombardy

Bergamo

+29.6

+66.8

+39.0

+50.1

Italian manufacturing industry +13.0

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Medium-sized companies: turnover and value addedIndex 1997=100, closed set – MB estimates for 2007

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Medium-sized companies: staff and operating marginsIndex 1997=100, closed set- MB estimates for 2007

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Medium-sized companies: exports , 1997-2008 Index 1997=100, closed sets - MB estimates for 2007 and 2008

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Medium-sized in North-West Italy and large firms: from1997 to 2007Index 1997=100, closed sets - MB and MB-UC data - MB estimates for 2007

106.4 107.9

120.7125.5 128.5 130.9

139.6

145.7

161.1176.7

100.0105.3

109.0117.3 118.7

122.8 124.4131.1

133.5 142.2

154.8

89.1

81.1

89.1 92.190.8

101.4

113.4

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

MSEs, NW Italy - Turnover MSEs, NW Italy - Value added

Large groups -Consolidated global turnover Large groups - Value added in Italy

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Competitiveness: data per employee€’000 in 2006 – MSE universe - R&S data for manufacturing MNEs

LC / VA=72.4%

margin=

14.5

LC / VA =70.1%

margin =

19.1

LC / VA =69.8%

margin=

18.1

LC / VA =67.4%

margin=

25.1

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Net per capita value added at 1997 pricesClosed sets, 1997-2001 and 2001-2006 (2/3 of IMs)

Expansion

Transformation Expansion

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Net per capita value added at 1997 pricesClosed sets, 1997-2001 and 2001-2006 (2/3 of IMs)

Expansion

TransformationExpansion

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Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

Medium-sized companies in NW Italy: are they profitable?Difference between ROE and risk-free rate - universe

Avg. difference = 6.6 points (7.2 points MSEs, all

Italy)

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Financial structure% of tangible invested capital – universe data, 2006

-34.5 -31.9 -32.1 -25.2 -19.3 -21.5

-22.3 -22.5 -23.9 -23.6 -39.9 -39.7

-43.2 -45.6 -44.0 -51.2 -40.8 -38.8

63.9 66.7 77.3

44.8 43.8 38.8

36.1 33.3 22.7

55.2 56.2 61.2

Fixed assets Current assets Net capital M/l term debt Short-term debt

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Financial solidity in North-West Italy, 2006Data, MB-UC universe

NTC = Net tangible capital

B = BorrowingsNTC/ cap. inv.

NTC / net fixedassets

B (short-term) / net working

capital

Average ratio 45.6% 136.9% 41.8%

No. Of companies:

With ratio > 90% 230 967 296

From 75% to 90% 168 83 147

From 50% to 75% 337 175 364

From 25% to 50% 482 165 333

< 25% 516 343 593

Total companies 1,733 1,733 1,733

Share, 2 strongest categories 61% 53%

Share, 2 weakest categories 29% 26%

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Independent34.7%

Default6.5%

Bought by Italian groups41.7%

Bought by

non-Italian groups17.1%

Independent38.2%

Default7.7%

Bought by Italian groups

37.5%

Bought by non-Italian

groups16.6%

Medium-sized companies that have become largeenterprises: where are they now?

NW Italy - 199 companies Italy - 507 companies

Annual average default rate in NW Italy:

0.8%

Annual average default rate in Italy:

1%

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Solidity confirmed% of companies in 2006 - R&S-Unioncamere credit scoring model

Medium-sized industrial companies in North-West

Italy, 1997-2006 and 2007-2008

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Medium-size companies, Bergamo - % data

Value added division: Bergamo NW Italy

Personal and household goods 20.9 19.6

Mechanical engineering 39.7 42.4

Chemicals 15.2 13.9

Other sectors 24.2 24.1

TOTAL 100.0 100.0

NOM/VA 25.2 23.9

Debt/invested capital 51.4 50.4

Exports (as % of sales) 39.0 37.4

Mediobanca Research Department

Piazzetta M. Bossi 1, Milan, Italy

Website: www.mbres.it