PICANOL GROUP

1

• PICANOL GROUP
• HY1 2004 Financial Results
• Analyst Meeting
• - Ieper, 24 August 2004 -

2
Agenda

• Picanol Group
• - Three pillar business model- Strategy-
  Highlights HY1 2004- Outlook
• HY1 2004 Financials
• - Income statement- Earnings per share
• Questions

3
Three pillar business model (1/2)
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Three pillar business model (2/2)

• New organisational structure aligned with three
  pillar business model, with focus on
  Technologies, Systems and Services.
• Goals create more focus and increase autonomy,
  effectiveness and identity of the three pillars.
• Streamlining of management structure new six-man
  Management Committee.
• Implementation is proceeding as planned.

5
Strategy of the Picanol Group

• Expand product offering with more standardised
  weaving machines for specific market segments.
• Expand market by introducing existing weaving
  machines in significant emerging markets like
  Bangladesh, Brazil, India, Pakistan and Russia
• HY1 04 orders in Brazil, China, Eastern Europe
  and India confirm
• strategy to gain customers by focusing on new
  segments and on
• important emerging markets.
• Further focus on and implementation of the three
  pillar business model.
• Further increase efforts regarding general cost
  management and capacity improvement.

6
Highlights HY1 2004

• January 04
• Breakthrough in Eastern-Europe three contracts
  for 155 new weaving machines.
• February 04
• Contract for 512 GTXplus rapier weaving
  machines in China, the
• biggest single order for rapier weaving
  machines ever.
• April 04
• Launch of two weaving machines for glass
  weaving, another step in the
• strategy to address specific niches in the
  textile sector.
• May 04
• Launch of the new organisational structure, in
  line with the three pillar business model.

7
Outlook

• Uncertainty remains about the evolution of the
  USD.
• Successful strategy to gain customers by focusing
  on new segments and important emerging markets
• Product mix with new, more standardised machines
  for specific market segments
• Introduction existing machines in significant
  emerging markets.
• Elaboration of strategic plan, in order to
  smoothen the cyclical character of the global
  textile industry.
• Success depends on the ability of Europe to
  maintain its competitiveness in the export
  markets.

8

• HY1 2004 Financials

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Income statement
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Earnings per share
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• Questions?