S T A R C O M P A N Y R E S U L T S Milan, 2004 february 26th

Contents 1.COMPANY PROFILE Emak Group Structure Introduction 2. STRATEGIC GUIDELINES 2003 International Scenario Market Targets Strategic Guidelines Investment Policy 3. FINANCIAL DATA Turnover breakdown Economic and Financial data Projections

Emak is a European leader in Design, Engineering, Manufacturing, Marketing of outdoor power equipments Introduction - 3 -

CORE BUSINESS Focused on gardening, landscaping and forestry equipments BRANDS Oleo-Mac and Efco for dealer network and Dynamac/private labels for retail chains PRODUCT Wide range and well balanced product mix STRUCTURE 2 plants in Italy and 1 in China, 5 commercial branches in Europe, 120 distributors in 70 countries, 17,000 dealers POSITION Among top five in Europe DATA Euro 153 million of sales in 2003, more than 80% in Europe - 4 -

Emak Group structure as of December 31,

Emak Group Emak I ( Headquarter ) Emak D Comag Emak Bx Emak UK Emak E Emak F - 6 -

Emak Group Emak China - 7 -

2003 International scenario Europe and Usa: 80% ÷ 85% of total world market Demand mostly for replacement products, driven by GDP growth Hot and dry weather during summer 2003 in Europe causing a high stock level of lawnmowers and brushcutters on the shelves - 8 -

2003 International scenario Developing countries: Increasing demand in East Europe and Far East Demand influenced by local political and economic situations (Argentina, Venezuela) but now recovering South America: Competitiveness problems due to US $ weakness vs € in USA, Far East, Russia, South America and Middle East Other Areas: - 9 -

More and more stringent emission regulations in USA and Europe Increasing importance of DIY channel generally everywhere More and more demanding end users Tougher and tougher competition by consolidated group Competition for premium price products by new manufacturers from China Market Challenge

Emak targets Growth of sales turnover higher than market increase Growth of operative profitability

Strategic Guidelines To reach these objectives EMAK has developed a focused strategy for the achievement of excellence on five points Organization and Resources Competitiveness Product Innovation Distribution Network Quality

Product Innovation Engineering with style Better understanding of customer needs

Product Innovation …..a new generation of clean engines Product Lifecycle Management Product Innovation

Competitiveness Extensive use of ICT to re-engineer corporate organization and process Product cost reduction plans  Plant:20,000 mq  Start up: Q New plant in China for “price sensitive” products

Quality Fit for use concept Measurement of customer satisfaction Reliability

Distribution Network Focus on markets directly controlled by Emak Consolidation of leadership position in Italy Increase of market shares of Emak subsidiaries in F, D, UK, E, BLX Acquisition of STAUB brand in France

Development of business opportunities through:  Sales increase in modern distribution channel also thanks to more competitive products (China plant) Marketing activities:  Higher Oleo-Mac and Efco brand awareness through a selected dealer network Distribution Network Improvement of after sale service through:  ICT product support  WEBCAT spare parts process management Development of OEM business:  Specific products lines

Organization & Resources Higher efficency in company processes/costs reduction Better service (added value for customers) Indicators for the monitoring of company’s process performances Focus on human resources value Plan for working capital optimisation Investments: focus on ROI

Investment Policy

Contents 3. FINANCIAL DATA

Turnover breakdown Sales distribution by geographical area Million Euro

Turnover breakdown Sales distribution by product line Million Euro

Economic and financial data Consolidated P&L Accounts Million Euro Estimated

Economic and financial data Consolidated assets and liabilities

Financial Performance

Fonte: Company Profile di Borsa Italiana Emak Share: index performance

Estimated Growth Projections

In collaboration with BORSA ITALIANA S.P.A. - Divisione STAR TECNOLOGIA PER IL VERDE