London, September 20 2002

1
STAR COMPANY PRESENTATIONS
London, September 20 2002
2
Contents

• Equity Story
• Geographical distribution
• Growth strategies and acquisitions
• Financials
• 2002 Outlook and Investment Highlights
• Back up slides

3
Equity Story

• Official price (30/08/2002) Euro 3,257
• Market cap. (millions of euro) 57,649
• No. of shares (millions) 17,7
• Free float (04/09/2002) 28,92
• 2001/2002 Max/Min Euro
  5,71/2,51
• Average volume daily 1m
  12.654 3m 7.839 ytd 11.603
• Payout Ratio 97/00 gt 40

• One of the Top Five architectural lighting firms
  in Europe
• Technological driver and product innovation
• Steady growth trend
• Revenues 96-01 (CAGR) 22
• EBITDA 96-01 (CAGR) 29
• Earning 96-01 (CAGR) 24
• MIBTEL outperformer
• (over 30 from 02/01/02)

1H02
1H01
8,9
67.62
62.08
10.72
6.41
67,2
7.05
3.00
134,8
5.44
2.06
163,6
Before taxes. Not audited.
4
Architectural Lighting the key drivers
5
Geographical Distribution
6
Growth Strategies Acquisitions

• FOCUS ON ACQUISITIONS
• Segment leader in complementary business areas
• Complementary offer
• Product synergies and technology crossover
• The parent companys role (Targetti Sankey
  S.p.A.) guarantees
• Control
• Co-ordination
• High quality standards

7
Diversification as a response to cyclicity
2000
2001
REVENUES per BUSINESS AREA Interior
architectural 76.7
75,7 and technical lighting (Targetti,
Victoria, MLE) Residential market lighting
3.2
3,1 (Esedra) Exterior and Public outdoor
lighting 10.3
10,2 (Exterieur Vert, Neri) Lighting
sources 8.0
7,9 (Dura Lamp) Others
3.1 3,1 (Duratel) Total
2000
2001
75.2 58,6 3.8 3,0
34.3 26,8 10.6 8,3 4.4
3,4
(millions of Euro)
101.3 100 128.3 100
8
Relevant Corporate Clients
9
The trend of the market and Targetti leadership
The ever-increasing awareness for high quality
lighting implies a growth in lighting budgets...
all of this means Culture of Light
10
Financials

• Consolidated Income Statement
• 1H02 Vs. 1H01 Income Statement
• Consolidated Balance Sheet
• 1H02 Vs. 1H01 Consolidated Balance Sheet
• Cash Flow and Capital Expenditure

11
Consolidated Income Statement

• 1998 1999 2000 2001
  2001 / 2000
• REVENUE 60.1 79.2 101.3
  128,3 26,7
• EBITDA 9.5 13.0 13.5
  16.6 23,2
• (as of revenues) 15,9
  16,4 13,3 12,9
• Goodwill -
  (0.5) (1.2) (1.3)
  7,5
• Depreciat. and Provis. (2.4)
  (3.1) (4.3) (6.0)
  37,9
• EBIT 7.2
  9.4 7.9 9.3
  17,6
• (as of revenues) 11,9
  11,9 7,8 7,2
• NET PROFIT 3.5 4.1
  2.6 3.3
  28,1
• (as of revenues) 5,8
  5,2 2,6 2,6

(millions of Euro)
start of consolidation of Gruppo Neri
12
1H02 Vs. 1H01 Income Statement

• 1H01
  1H02 1H02 / 1H01
• REVENUES 62.1 67.6
  8,9
• EBITDA 6.4 10.7
  67,2
• (as of revenues)
  10,3 15,9
• Goodwill (0.7) (0.7) -
• Depreciat. and Provis. (2.7)
  (3.0) 9,5
• EBIT
  3.0 7.05 134,8
• (as of revenues) 4,8 10,4
• NET PROFIT before taxes 2.1 5.4
  163,6
• (as of revenues) 3,3 8,0
• Not audited.

(millions of Euro)
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Consolidated Balance Sheet
1998 1999 2000
2001 2001 / 2000 NWC 15.7
21.4 26.2 40.5
54,4 (as of revenues) 26,2
27,0 25,9 31,5
Fixed Assets 13,5
24.3 35.7 37.6
5,1 Capital Employed
26.0 42.1 58.0 72.6
25,1 Shareholders Equity
26.7 30.3 37.6
43.9 16,5 Net Financial Debt
0.7 (11.7) (20.4) (28.7)
40,7 Net Fin. Debt / Shareholders E.
38,7 54,2 65,4
(millions of Euro)
start of consolidation of Gruppo Neri
14
1H02 Vs. 1H01 Consolidated balance sheet

• 1H01
  1H02 1H02 / 1H01
• NWC 41 48.8
  19,1
• (as of revenues) 66,0 72,7
  
• Fixed Assets 38.8 36.1
  - 6,9
• Capital Employed 74.8 79.4
  6,1
• Shareholders Equity 41.7
  47.4 13,6
• Net Financial Debt (33.1) (32) - 3,2
  
• Net Fin. Debt / Shar. Eq. 79,4 67,7
• Not audited.

(millions of Euro)
15
Financials Cash Flow and Capital Expenditure
16
2002 Outlook

• Outperform the lighting market by 2-4

• Maximize the synergies from acquisitions

• Continuous strengthening of relationships with
  specialized wholesalers and specifiers

• EBITDA margin growth

17
Investment Highlights

• Leader in architectural lighting (one of Top 5
  in Europe)

• Flexible organisation, able to support further
  growth

• Aggregating model in a highly fragmented market

• Key partner for specialized wholesalers,
  specifiers and corporate clients

• Young, skilled and motivated management

• Continuous increase in revenues and margins
  since 1996

• Outperforming MIBTEL over 30 since 02/01/02

18
Back up slides

• Shareholder Structure
• Stock Performance
• Corporate Governance
• Contacts

19
Shareholder Structure
Targetti Giampaolo 46,02 Domenico Neri Srl
15,25 Orlandi Antonio 6,42 Henderson
Investors 3,39 Sevian Srl 3,39 Cisalpina
Gestioni 1,98 Nextra IM Sgr 2,31 Rest of
the market 21,24
Lock up agreement Domenico Neri Srl undertakes
not to sell its shares for a period of three
years since September 27, 2001.
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Stock Performance (02/01/02 - 10/09/02)
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Corporate Governance

• BOARD of DIRECTORS
• Chairman Giampaolo Targetti
• C.E.O. Lorenzo Targetti
• Directors Alvaro Andorlini
• Giancarlo Lippi
• Carlo Marchi
• Antonio Orlandi
• Domenico Neri
• Antonio Neri
• Luciano Sorbi
• Internal Control Committee
• Orlandi, Marchi, Sorbi
• Targetti Sankey joined the STAR segment in
  April, 01 2001.
• Indipendent Directors

Remuneration Committee Orlandi, Marchi, Sorbi
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Contacts
Fabio Norcini Ph. 055 37 91 299 E-mail f.norcini_at_t
argetti.it Investor Relations Manager Web
site www.targetti.it