CAPITAL MARKETS DAY Heusenstamm, Germany 26 November 2014

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1 CAPITAL MARKETS DAY 2014 Heusenstamm, Germany 26 November 2014

2 Braas Monier More than a macro call Pepyn Dinandt, Group CEO

3 First nine months 2014 at a glance Page 2

4 European recovery still expected to come but pick-up in new built postponed Change in EuroConstruct expectations over the last 12 months Forecast for Total Residential Construction rather stable Recovery of New Residential Construction postponed by 1 year Improved performance of Residential Renovation expected Source: EuroConstruct, November 2014 Page 3

5 Top Line Growth program started, with the aim of achieving above-market growth Sales & marketing improvement Continuous improvement of our sales & marketing capabilities and roll-out of sales & marketing best practices from one country to another Service development Expansion of our service portfolio, with the aim of reinforcing our position as an easy-to-do-business with manufacturer New product introduction Targeted additions and adjustments to our product portfolio, to maintain our innovative edge and our high product quality Bolt-on M&A and scope expansion 1 Focus on capital allocation as engine to drive TLG Adhere to strict cost discipline Financially disciplined, bolt-on M&A transactions, when right opportunities arise Targeted expansion of our geographical scope in or into growing, attractive markets Further investments in components business to grow share of existing business and to develop adjacencies Optimisation of asset base aligned with defined strategy Focus on areas of excellence Ensuring financial flexibility to seize opportunities (deleveraging and strong cash generation) Strict focus on profitability and cash generation Operational adjustments in line with market development Further improvements of lean processes 1. Scope expansion by entering new countries with local production or exports, or by building new plants to increase penetration in existing, growing markets Page 4

6 Germany Latest Developments & Trends Page 5

7 The importance of Roofing Systems: Understanding the whole roof is key Page 6

8 The importance of Roofing Systems: New standards as a business opportunity Page 7

9 Innovative products and solutions Page 8

10 Excellence in Service Example of Italy Page 9

11 Technical Centre basis for know-how advantage Page 10

12 Investing in future growth Project Pipeline for Strategic & Expansion Capex: (main projects) Moving one plant in China inland to prof from regional growth Expanding production capacity in Indonesia Increasing capacity in Germany for Polish exports Production of innovative light weight tile Increasing components offer with new coating line Capex requirements: (in addition to EUR 60 million p.a. sustaining Capex) Approximately EUR 8 million in 2015 Will drive further revenue and EBITDA growth Page 11

13 Value accretive bolt-on M&A Tejas Cobert / CT Cobert Telhas: Creating shareholder value Components synergies Export business Page 12

14 Strategic acquisition for an attractive price Revenue growth to be driven by moderate market recovery and growing exports Earnings growth based on operating leverage, synergies from components sales and further efficiency improvements until 2017 No restructuring needed, no non-recurring expenses expected Cash consideration of EUR 26.5 million incl. inter-company loans Interest-free external liabilities of EUR 1.4 million Equity portion of disposed stake EUR 1.7 million (w/o synergies) EV / EBITDA 2015e (w/o synergies) on long-term industry average of around 6.5x Incl. expected synergies (3 years) EV / EBITDA 2015e at around 5.0x in EUR m e 2015e (w/o synergies) expected synergies (in 3 years) mid-term targets Potential in normalised markets Revenues 32.1 ~ 35 ~ 38 EBITDA 0.4 ~ 3.5 ~ high single-digit growth CAGR EBITDA margin increase towards current Group level EUR > 50 m EUR > 10 m Page 13

15 Second concrete tile plant started operation in Western India Nashik Doubling production capacity and geographic reach to support future growth Revenues from second plant expected to grow over time from ~ EUR 1 million in 2015 to ~ EUR 4 million in 2018 EBITDA margin above Group level expected Q start of Construction Sep 2014 start of Production mid-oct 2014 start of Sales Capex of approx. EUR 5 million (2012 to 2014) Concrete tiles are a niche product in India s pitched roof market Outstanding volume growth in this segment of the market with an expected CAGR above 20% in the coming years Strengthening leading market position of Monier India in concrete tiles Page 14

16 Go 4 Process Excellence Multi-year programme to systematically enhance the Group s internal processes Targets of Go 4 Process Excellence: Administration In-house Logistics Sales Support Production Processes maximise process efficiency ensure neutralisation of remaining fix cost inflation potentially identify additional benefits Page 15

17 A proof for Team Excellence at Braas Monier Page 16

18 Wrap-up Pepyn Dinandt, Group CEO

19 Braas Monier: More than a macro call Outperformance in the German market Leader in understanding pitched roof systems Strong innovative power in products and solutions Most comprehensive service offer of the building supplier industry Unique Technical Centre infrastructure Page 18

20 Braas Monier More than a macro call