1) GESCO is a holding company that acquires and develops industrial SMEs in Germany, focusing on four market segments: production process technology, resource technology, health and infrastructure technology, and mobility technology. 2) For the 2016/2017 financial year, GESCO reported lower order intake, sales, and earnings in the first half compared to the previous year due to economic uncertainty. However, the third quarter saw increases in order intake and sales. 3) GESCO recently acquired Pickhardt & Gerlach Group, a leading supplier of refined cold rolled strip steel, to expand in the resource technology segment as part of its more active M&A approach.

1. From melting steel to 3D-printing: investing
in the technology-driven German “Mittelstand”
as at 22 December 2016

2. 1. Business Model
2. Financial Year 2016/2017
3. M&A and Recent Acquisition
4. Capital Market
Overview
2

3. GESCO Group – an association of industrial SMEs
including market and technology leaders
 Currently 17 operating subsidiaries under the roof of GESCO AG
 We think and act on a sustainable and entrepreneurial basis
 We operate in established sectors with innovative technologies
 We offer technology “made in Germany” for the world’s markets
 GESCO is comprised of flexible, operationally independent and
entrepreneurially-managed entities that benefit from being part of a strong group
GESCO AG – long-term investor and safe haven
for succession solutions
 We acquire and develop industrial SMEs on a long-term basis without exit intentions
 Majority acquisitions, generally 100 %
 Usually as part of a succession arrangement
 New management is offered opportunity to acquire stake
of up to 20 % of the company it runs
1.The business model
3

4.  GESCO’s new portfolio strategy: What remains, what changes?
 Preserving the well-proven:
 Long term oriented, sustainable business model
 Long term investments, no exit-focus
 Combination of internal and external growth
 Entrepreneurial approach, independently managed subsidiaries
 Active IR, open communication with the capital market
 Providing new impetus:
 A new portfolio strategy
 4 segments  higher transparency, new framework for acquisitions
 Systematic benchmarking
 Optimisation projects for individual subsidiaries
 A more active role of GESCO AG in terms of consulting for its subsidiaries
 The holding provides stronger support for its subsidiaries
 A stronger focus on free cash flow (working capital, investments)
 A more active approach towards M&A
 Our goals:
 Living up to historic margins and growth rates
 Stimulating external growth
 Strengthening the GESCO model for a rougher, faster changing environment
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1.The business model

5.  GESCO’s portfolio strategy
 Spring 2016: development of a portfolio strategy of profitable growth
based on tried-and-tested GESCO business model
 Criteria: long-term positive megatrends, comparable end customer markets,
similar economic fluctuation and growth rates
 Definition of 4 relevant end customer market segments
 Grouping of existing GESCO Group companies into the new segments,
new segment reporting since Q1 2016/2017
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1.The business model
Production process
technology
Resource
technology
Health and
infrastructure
technology
Mobility
technology

6. 6
Production process
technology
Dynamically growing markets,
high degree of innovation,
automation, „batch size 1“
Robotics and automation
solutions in machine and plant
construction, technology-intense
manufacturing services
Resource technology
Consolidating markets, focus on
niches and customer service
Customised preparation of
primary materials, e. g. materials
supply, transport and loading
technology
Health and infrastructure
technology
Not very cyclical, relatively
resilient to economic fluctuation
Components, modules and
primary products for providers
for mass markets close to end
customers
Mobility technology
Cyclical automotive market,
positive outlook driven by
technological leaps, e. g.
electromobility
Tools and moulds, components,
parts etc. for vehicle industry
1.The business model

7.  Objective of the GESCO portfolio strategy: enhance value
of investment portfolio organically and through acquisitions
 Respective managing directors continue to have exclusive
operating responsibility for GESCO Group companies
 As the majority shareholder GESCO AG has “3 levers”
1. Appointment of best possible management
2. Prioritisation of investment projects within the individual companies
which promise the highest return on capital employed in the long term
3. Active consulting and support role of shareholder:
 Monthly discussions, regular exchange, sparring, best practice
 Setting focal themes on strategy days: digitalisation and Industry 4.0
 Support for technical optimisation projects for profitable growth and
cost efficiency, from the beginning of a project to its implementation
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1.The business model

8. Please note:
FY subsidiaries = calendar year
8
2.Financial year 2016/2017
1 January 2016 31 December 2016
31 March 20171 April 2016
FY GESCO AG / GESCO Group = 1 April to 31 March

9. The environment
 Forecast GDP growth: 1.7 % to 1.8 %
 Forecast VDMA: stagnation at best
 Agricultural machinery and oil industry: still no growth impetus
 „Dieselgate“ burdens automotive industry‘s propensity to invest
 Political risks (Brexit decision, Turkey) increase uncertainty
 Outcome of US elections unclear
 Industrial customers still generally showing reluctance to invest
 New growth stimuli still lacking in capital goods industry
 Our measures:
 Short term: cost reduction, questioning investments
 Medium term: optimisation projects on cost and opportunities side
in the context of the new portfolio strategy
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2.Financial year 2016/2017

10. 2.Financial year 2016/2017 – 1st HY
1st HY
2015/2016
1st HY
2016/2017 Change
Order intake €m 258.1 250.3 -3.0 %
Group sales €m 237.3 228.7 -3.6 %
EBITDA €m 26.1 21.0 -19.6 %
EBIT €m 16.0 10.6 -33.9 %
Group net income after minority interest €m 7.9 4.8 -39.2 %
Earnings per share acc. to IFRS € 2.39 1.46 -39.2 %
Cashflow from ongoing business activities €m -3.2 13.9 -
10
The first half year
 Q1: rather weak initial quarter
 Q2: burdened, since customers postponed deliveries
of major orders to Q3
 1st HY: slightly declining order intake and sales,
earnings figures clearly burdened
 Cash flow significantly improved

11. 2.Financial year 2016/2017 – Segment Development 1st HY
11
1st HY
2015/
2016
1st HY
2016/
2017
Remarks
€ m € m
Production
Process
Technology
Sales 32.2 30.7 production of machinery
and plants in progress;
significant improvement
expected for 2nd HY
EBIT 1.1 0.5
Resource
Technology
Sales 107.7 100.7 customers from oil and
chemical industry
reluctant to invest, price
pressure in steel industry,
postponements to Q3
EBIT 9.8 6.4
Healthcare /
Infrastructure
Technology
Sales 58.7 59.9 very robust, less sensitive
to economic climate,
profitable growthEBIT 5.1 6.2
Mobility
Technology
Sales 39.0 38.8 uncertainty in end-
markets, challenging
tooling environmentEBIT 4.4 1.5

12. 2.Financial year 2016/2017 – Q3 (operating months July to Sept. 2016)
Preliminary figures for the third quarter
12
Q3: order intake
+5% yoy
─ Order intake (€‘000)
─ Sales (€‘000)
 In Q3 order intake (approx. € 126 m) and sales (approx. € 128 m)
on satisfactory level
Q2: order intake
+14% yoy

13. The second half year
 In Q3 quite a number of machines and plants delivered  strong quarter
 In Q4 declining operating business and one-off expenses
 Guidance for the full FY from August 2016 was narrowed
2015/2016
Actual
2016/2017
Guidance as at
Aug. 2016
2016/2017
Guidance as at
Nov. 2016
Group sales € m 494.0 480 at best 480 at best
Group net income
after minority interest
€ m 16.1 13.5 at best 11.5 to 12.5
Guidance
13
2.Financial year 2016/2017

14.  More active approach towards M&A
 Market still characterized by strong demand
and a limited number of companies offered
 Focus on 4 end customer segments
 GESCO still generates high deal flow
 GESCO has intensified its activities, aims to generate direct contact
with entrepreneurs / business owners, which has already led to a number
of personal meetings
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3.M&A and Capital Market

15.  Recent acquisition: Pickhardt & Gerlach Group (PGW)
 Leading supplier of refined cold rolled strip steel
 Products: nickel-, copper-, brass- or zinc-coated strip steel
and nickel-coated wire
 Customer sectores: electro-technic industry, automotive,
dekorative arcicles, sporting equipment, office supply
 Product examples: electronic circuit breakers,
file folders, windscreen wipers…
 Highly automated production systems
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3.M&A

16.  Recent acquisition: Pickhardt & Gerlach Group (PGW)
 Family business, founded 1902, taken over by Hekhorn family in 1990
 GESCO acquires 100% of the shares from Hekhorn family as part of a
succession planning process
 Signing Dec. 2016, approval of antitrust authorities expected
in the near future
 Managing Director of technology will continue to work for PGW
 Will be integrated in the Resource Technology segment
 Approx. € 30 million sales, 40 employees
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3.M&A

17. 4.Share price development (%) – 1 and 10 years
GESCO vs. Indices, 1 year GESCO vs. Indices, 10 years
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GESCO DAX SDAX

18. 18
4.The GESCO share – share split
 Share split 1:3 was realized on 22 Dec. 2016
 Implemented as a reaction upon shareholders’ requests
 One „old“ share was replace by 3 „new“ shares
 Split was preceded by capital increase through own funds
in order to reach a nominal value per share of € 1.00 and
a reasonable split ratio
 Volume of equity remained unchanged, no inflow of new funds
 Before: 3,325,000 shares
 After: 9,975,000 shares
 Market not influenced by this measure, after the split distributed on a higher
number of shares, share price reduced correspondingly
 Targets:
 Lighten” the share“
 Increase attractiveness of share,
especially for retail investors
 Support liquidity in the share

19. 4.The GESCO share – shareholder structure
19
Free float: 85.1%
 14.9 % Stefan Heimöller
(entrepreneur, member of supervisory board,
private investor)
 13.9 % Investmentaktiengesellschaft
für langfristige Investoren TGV
(institutional investor)
 approx. 40.0 %
other private investors
 approx. 31.2 % other
institutional investors
Directors‘ Dealings: In current FY purchases by members of supervisory and executive board.

20. Appendix – GESCO Group overview
Company Sales 2015
€‘000
Staff as at
31/12/2015
GESCO AG
shareholding *)
AstroPlast Kunststofftechnik GmbH & Co. KG 16,262 92 100%
Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 12,117 117 100%
C.F.K. CNC-Fertigungstechnik Kriftel GmbH 9,708 66 80%
Dömer GmbH & Co. KG Stanz- und Umformtechnologie 15,661 104 100%
Dörrenberg Edelstahl GmbH 179,243 509 90%
Frank Group 27,629 258 90%
Franz Funke Zerspanungstechnik GmbH & Co. KG 15,383 80 80%
Haseke GmbH & Co. KG 12,969 64 80%
Hubl GmbH 12,775 106 80%
Georg Kesel GmbH und Co. KG 11,239 60 90%
MAE Group 44,359 222 100%
Modell Technik Formenbau GmbH 13,961 115 100%
Pickhardt & Gerlach GmbH & Co. KG (Acquired in Dec. 2016) 100%
Protomaster GmbH 17,688 123 82.17%
Setter Group 26,984 98 100%
SVT GmbH 33,464 186 90%
VWH GmbH 11,421 109 80%
Werkzeugbau Laichingen Group 26,594 177 100%
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*) as at 14 Nov. 2016

21. Founded: 1989
Share capital: € 9,975,000
Shares: 9,975,000 registered shares
Free float: 85.1%
Stock markets: Xetra; Frankfurt (regulated market);
Berlin, Düsseldorf, Hamburg, Hanover,
Munich, Stuttgart (open market)
Sec. identification number: A1K020
ISIN: DE000A1K0201
IPO: 24/03/1998
End of financial year: 31 March
Designated sponsors: equinet Bank AG
Oddo Seydler Bank AG
Appendix – Facts and figures for GESCO AG
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22. Appendix – Financial calendar and IR contact
 Financial calendar
14 Feb. 2017 Q3 figures
29 June 2017 Annual Accounts Press Conference /
Analysts‘ Meeting
Aug. 2017 Q1 figures
31 Aug. 2017 Annual General Meeting, Wuppertal
Nov. 2017 Q2 figures
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 Investor Relations
GESCO AG Telephone: +49 202 24820-18
Investor Relations Fax: +49 202 24820-49
Oliver Vollbrecht E-mail: info@gesco.de
Johannisberg 7 Internet: www.gesco.de
42103 Wuppertal
Germany