Company presentation – Full year 2013

SOL Group at a glance• Founded in 1927, is an Italian based multinational company present in 24 countries with more of 2.600 people

employed.

• Two core , separated but integrated and synergic business ar eas: Technical Gas sector (production, applied

research and marketing of pure, medical and industr ial gases) and Home-Care service sector (supply of

medical products and medical assistance services as well as equipment for home care therapy).

• Two recent businesses: Hydro Energy and Biotechnology .

• Strong results and sound balance sheet:

• Over 596 millions € of Total Group revenues in FY2013 (+2,3% FY2012);

• Over 48% of international revenues in 2013 (vs 23,7% in 2000 )

• 7,2% sales CAGR in the last 10 years;

• 22,1% of EBITDA margin in 2013;

• 0,518 of Debt/Equity ratio;

• Dividend policy: 30% average dividend pay out ratio over the last 10 yea rs.

2

The Technical Gases Business

3

A complete range of industrial gas (both atmospheric and non-atmospheric):medicinal, pure and special gases.

The Technical Gases Business

Research, design, and construction of:• Industrial gas production facilities,• Plant and equipment for gas utilization• Services and consultancy

� Oxygen� Nitrogen� Argon� Hydrogen� Carbon dioxide� Acetylene� Nitrous oxide� Gas mixtures

� Equipment for medical applications� Equipment for cryogenic applications� Deep freezing tunnels� Oxygen burners� Ozonisers

Production and distribution of Gases

Supply of plants, equipments, services and consulta ncy

SOL Group operates in the technical gases business througho ut the brand SOL

� Ultra high purity gases

� Medical gases� Gaseous

helium� Liquid helium� Refrigerating

gases

� Electronics gases

� Ammonia� Combustible

gases

� Medical air plants� On-site plants� Welding machines

and equipment

4

229,3240,5

252,8

282,5296,3

344,9 342,7325,1

340,6

313,5296,3

150

200

250

300

350

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lion

s Euro

Technical Gases BusinessTechnical gases business (M€)

FY2013 FY2012 YoY

Sales 343 345 - 0,6%

EBITDA 70 71 - 3,8%

EBITDA % 20,5% 21,2% - 0,7%

Investments 58 39 + 47,9%

• In 2013 the industrial gases division

sales were stable, maintaining the

EBITDA margin above 20% .

• In 2013 the division invested over the

16% of its revenues.

• 4,1% sales CAGR over the last 10 ys.

SOL Group 2013 Total revenues

Technical Gases53%

10 years Sales in Technical Gases 2003 - 2013

5

Market characteristics

• Resilient and growing market

• Limited economic cycle demand

dependence of each sales area

• Local presence as a key factor

• Broad variety and diversification of end-

markets and applications:

• Metallurgy and Steel industry

• Glass, Ceramics, Fibers

• Engineering, Metal Goods, Automotive

• Gas, Water, Sewage and Refuse services

• Food and Beverages

• Electrical/Electronics and instruments

• Chemical industry, Refinery, Rubber,

Plastics

• Hospitals, Health services,

Pharmaceutical industry

Technical Gases businessSOL

• High diversification of sales area :

• Diversified presence in each

industry segments;

• More than 100 different

applications for technical gases

• Long term contracts with customers:

• Pipeline and on-site supplies: up

to 15 years;

• Compressed gases: up to 5

years;

• Cryogenic liquid gases: up to 3

years

• Strong local presence :

• 19 countries, 34 primary

transformation plants, 54

secondary transformation plants.

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• The uses of specialty gases are expanding in many different context. The market need

for maximum accuracy finds its answer in the world of gases:

• Universities and research centers : highly purified gas carriers for gas

chromatography, calibration equipment and gaseous compounds used as

precursors for chemical synthesis;

• Chemical and pharmaceutical carrier gases and calibration gases in many

activities related to process control;

• Hospitals: medicinal gases for pharmaceutical use, pure products and mixtures

for laboratory and analytical activities as a support to diagnostic processes,

cryomangement services;

• High-tech industry sectors (such as electronics, automotive and renewable

energies) where the use of gases is vital to the innovation of production

processes.

Technical Gases Business

Specialty and medicinal gases and services

7

Production SitesThe company

established a 50%

joint venture with an

important Indian

partner (that has 25%

of CO2 market share)

for the production and

distribution of

technical gases.

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• 34 primary production sites:

ASU Oxygen, Nitrogen, Argon,

Hydrogen, Carbon Dioxide,

Acetylene, Nitrous Oxyde:

units that produce gases from

row materials (electric energy,

atmospheric air, natural gas,

calcium carbide and

ammonium nitrate).

• 54 secondary transformation

sites (filling station): units that

are dedicated to filling activity,

storage and distribution of gas

in general. Moreover they

produce ultra high purity

gases and gas mixtures.

The Home Care Business

9

The Home Care Business

• In the second half of the eighties, SOL seized a new market div ersification opportunity by

entering into the Home-Care service sector, synergical with the technical gas sector.

• The Group works through the VIVISOL Group, which supplies technologically advanced home

care services to patients for the treatment of chronic patho logies.

• VIVISOL manages the complete patient care from the delivery of medic al equipment and drugs,

performed by specialized home care professionals, to the pro vision of qualified medical and

nursing services, as well as tele-monitoring services and e mergency management.

• The company operates in 10 leading

countries of the European Union and in

Turkey, with over 60 offices employing

over 1.250 employees and serving more

than 250.000 patients daily.

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Home Care Business

Home care respiratory assistance

Other home care assistance

Home care equipment

Respiratory home-care services concern the home delivery t opatients of oxygen or enriched air and other services such asventilation, diagnosis of pulmonary pathologies and thera pyof respiratory disorders.

The other home-care services include telemedicine service s,artificial nutrition, integrated home-care service in therespiratory framework and in monitoring child respiratorydisorders.

VIVISOL markets also equipment intended for the diagnosisand therapy of the above-mentioned pathologies and itscustomers include hospitals, pharmacists, laboratories,clinics and doctors.

� Long term oxygen therapy

� Mechanical ventilation therapy

� Assistance to patients undergoing oxygen therapy during travels ( VIVITRAVEL)

� Diagnosis and treatment of sleep disorder conditions

� Home and traveling oxygen therapy equipments

� Ventilation equipment

� Instruments and accessories for diagnosis and aerosol treatment

� Home aids

� Home care artificial nutrition

� Integrated home care services

� Remote monitoring and diagnosis of respiration conditions

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Home Care Business

• VIVISOL has been able to

growth over the 6% in 2013,

with an EBITDA margin higher

than 21%.

• The Group is continuing to

invest significantly in this

business.

Hone Care business

(M€)

FY2013 FY2012 YoY

Sales 281 265 + 6,1%

EBITDA 61 60 + 3,2%

EBITDA % 21,9% 22,5% - 0,6%

Investments 34 46 -26%

SOL Group 2013 Total revenues

Home Care47 %

75,888,9

102,3121,9

142,7

264,9281,2

213,4238,8

160,3182,5

0

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lion

s Eu

ro

10 years Sales in Home Care 2003 - 2013

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Home Care Business

Key growth drivers:

• Aging population – demographics

• Restructuring of Health Care Systems through

de-hospitalization and home care

• Developments in portable medical technologies

• Better quality of life for Patients at home

• Increasing of respiratory and chronic pathologies

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Home Care - VIVISOL branches

VIVISOL is present in 10

leading countries of the

European Union and

Turkey with over 60

branches.

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Turkey

Home Care Business

VIVISOL Belgium - Lessines

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The Hydro Energy Business

16 16

• Leveraging on its core business

development in the Eastern Europe , SOL

entered into the Hydro-Energy sector.

• The industrial gas sector, is one of the

most energy intensive one. This

characteristic supported the Group

decision to invest in the Hydro-Energy

sector in order to enjoy synergies with its

Industrial Gases Business.

The Hydro Energy Business

• Currently the company owns and

operates 5 hydro-electric power plants in

Slovenia (about 50 Million KWh/year), 2

plants in Albania; 4 plants in Macedonia

(2 are under construction).

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The Biotechnology Business

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• SOL Group is active in supplying biotechnological equipment

and services to hospitals, clinics and laboratories (cryobanks,

cellfactories, cryomanagement, cryotransportation)

• With BIOTECHSOL is active in the area of tissue and stem cells

banking and biological tissues transportation.

• With the recent ( 2012) acquisition of the majority of DIATHEVA,

SOL Group is active in drug discovery and drug delivery

The Biotechnology Business

(recombinant monoclonal antibodies),

molecular diagnostic, GMP production

of recombinant proteins

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0

100

200

300

400

500

600

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013

SOL Group: 30 years Turnover (1983-2013)

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1983= 28,0 M€

1993=107,4 M€

2003=298,5 M€

2013=596,3 M€

298,5321,9

346,0

393,6

427,1

460,0 462,6

518,9

555,7583,0 596,3

0

50

100

150

200

250

300

350

400

450

500

550

600

650

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lion

s Eu

ro

SOL Group: consolidated results (2003 – 2013)

Sales

Cash Flow

50,0 54,2 56,3 60,9

75,787,6

81,792,6 97,0 98,5

92,6

16,8% 16,8%16,3%

15,5%

17,7% 17,7%

15,5%

19,0%

17,8% 17,5% 16,9%

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lion

s Eu

ro

0%

5%

10%

15%

20%

% o

n s

ale

s

Cash Flow % on Sales

21

0,060

0,066 0,067 0,068

0,081

0,100 0,1000,1000,095

0,084

0,081

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0,000

0,020

0,040

0,060

0,080

0,100

0,120

5,1%

5,7%

5,2%

4,5%

6,5%

5,1%

3,8%

5,8%

6,3%5,6%

7,8%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

0%

1%

2%

3%

4%

5%

6%

7%

8%

% o

n s

ale

s

10 years net profit and dividend growth

Net profit CAGR + 4,0%

NET PROFIT DPS - Dividend Yield

DPS CAGR + 5,2%

10Y AVERAGE PAY-OUT RATIO 30%

22

0

100

200

300

400

500

600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

309,2

287,2

Italy Other countries

International Expansion

SOL is focused on its international expansion:

• The Group started its operations in

Italy where it currently has 14

primary production sites.

• In 2013 the Group is present in 22

countries.

• Sol Group is moving towards a

50/50 Italian/International sales

ratio, to be reached in 2014.

10 years sales: 2003-2013 (+201,6 M€)

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Capital Expenditures (2003-2013)

High annual investments

• The Group every year invests

about 15% of its revenues;

• The Sol business requires a high

level of investments for long

term growth options;

• In 2013 almost the 74 % of the

Group investments have been

made outside Italy.

34,2

53,460,9

53,3

69,274,3

63,4 62,1

84,7 85,492,0

11,5%

17,6%

13,5%

16,2%15,4%

14,7%15,2%16,1%16,6%

13,7%

12,0%

0

25

50

75

100

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Mil

lion

s Eu

ro

0%

5%

10%

15%

20%

25%

% o

n s

ale

s

Capex % on sales

10 years of investments on sales 2003-2013

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Shareholding information and market price

Outstanding Shares

• 90.700.000 ordinary shares

• par value: 0,52

Shareholding Structure

• Fumagalli and Annoni

families 60%

Source: Borsa Italiana

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