Rieter Group

1st Half Year 2000: Results

Presentation by Dr. Hans Rudolf Widmer Chief Financial Officer August 25, 2000
Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

1st Half Year 2000 Achievements

Rieter Group

mio CHF

1-6 2000 1'416 82.6 17.33

Change in % 20 57 56

Sales Net profit EPS (in CHF)

Net profit up 57% and EPS up 56% driven by extraordinary textile machinery market recovery and by strong operating performance and cash flow Voting right limitations abolished Both core activities strengthened through acquisitions

Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

1st Half Year 2000 Achievements

Rieter Textile Systems

Period orders doubled due to explosive recovery of textile machinery markets and competitive machinery product portfolio EBIT margin of 8.9% based on rigorous cost improvement and price discipline in 1999 ICBT acquisition strengthens product portfolio as system supplier and opens entry into non-woven

mio CHF

1-6 2000 613 469 41.2 8.9

Change in % 106 31 497

Orders Sales EBIT - in % co

Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

1st Half Year 2000 Achievements

Rieter Automotive Systems

Above market growth sales increase of 15% driven by growing US and European markets and by Latin American recovery EBIT of 7.4% benefiting from volume effects and productivity gains Pioneering Rieter Ultra Light, winner of the Pace Award, continues to drive North American and European order flow for years 2002 onwards Position as full service supplier strengthened by acquisition of majority stake in Idea, a well known Italian car engineering and designing company with sales of 50 mio CHF

mio CHF

1-6 2000 941 68.5 7.4

Change in % 15 23

Sales EBIT - in % co

Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

Sales by Division 1st Half Year Sales

Other Business Activities 6

Textile Systems 469 33% +31%

Other Business Activities 10

Textile Systems 358 30%

67%

69%

Automotive Systems 941

+15%

Automotive Systems 816

2000: 1'416 mio CHF

Semi-annual report 25.8.2000 / HRW-ip

+20%

1999: 1'184 mio CHF

Rieter Group

1st Half Year 2000: 19.6% Sales Increase Supported by Both Core Activities
mio CHF 1'500 49.3 1'400 1'300 48.1 1'200 1'100 1'000
1st half year 1999 8 9% 2 0%
Semi-annual report 25.8.2000 / HRW-ip

+19.6% +19.6%

-3.8
-0.3%
other

1'416

57.7 75.7
+6.4% +4.9%
acquisition ICBT

5.0
+0.4%

+4.2%

currency effects Textile Automotive Systems Systems

1'184

+4%
Textile Systems

Automotive Systems

7 4%

7 0%

1st half year 2000 7 5% 5 2%

Rieter Group

Sales Trending Upwards Since Mid-Year 1999

mio CHF

+19.6% 1'364 1'416* 1'279 1'184 1'251

1'500 1'250 1'000 750

+11.5% -9.5% -13.2% -2.1%

+19.6%

500

sales growth in % vs. corresponding pre-year semester

98 (1-6) 98 (71-6 7-12 12)

1998

1998

99 (1-6) 99 (71-6 7-12 12)

1999

1999

2000 1-6 (1-6)

2000

* includes 2 months sales ICBT

Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

Rieter Textile Systems: Market Development 1st Half Year Sales

Africa/other 17 Latin America 49 North America 81 11% 28% 17%
4%

Half Year Orders

1-6/2000: Regional Importance of Orders 1 2 3 4
mio CHF 800

Turkey Western Europe China South East Asia Nafta

432 432

Europe 132

40% Asia 189 +35%

600 400 200 0

(vs. 1999)

528

613 345

482

423

339

297

2000: 469 mio CHF

Semi-annual report 25.8.2000 / HRW-ip

1997 1997 1998 1998 1999 1999 2000

1-6 7-12 1-6 7-12 1-6 7-12 1-6

Rieter Group

1st Half Year 2000: Strong Sales Growth and Efficient Cost Management Sales
+19.6%
1'416 1'184 841 816
Automotive 941 Systems other

Operating Costs
(employee costs, operating costs, depreciation)

mio CHF
1'500 1'250 1'000 750 500 250 0 1998 1-6 515 1'364

Operating costs (mio CHF) 800

664.2 600 400 613.5 53.4%

Cost ratio (in % of co) 60%

667.8 55%

50%

358 1999 1-6

Textile 469 Systems

200 0

49.9% 48.0% 48.0% 45% 1998 1-6 1999 1-6 2000 1-6
Rieter Group

2000 1-6

Semi-annual report 25.8.2000 / HRW-ip

1st Half Year 2000 Material Costs

mio CHF 700 600 500 400 300 200 100 0 1998 1-6 42.8% 43% 41.4% 1999 1-6 2000 1-6
Rieter Group

Source of EBIT Growth

in % of co 618.3 50% 48% 44.5% 45%
in %

569.6 475.7

1-6 2000 100 44.5 48.0 7.5%

1-6 1999 100 41.4 53.4 5.2%

Change in Basis Points 310 +540 +230

Corporate output Material costs Operating costs Operating profit (EBIT)

40%

Semi-annual report 25.8.2000 / HRW-ip

1st Half Year 2000: Group EBIT Up 76% Supported by Strong Textile Division EBIT Performance
mio CHF 125 100 75 59.3 50 25 0 8.9% 6.9 2.0% 7.5% 5.2% 41.2 68.5 +23% 55.5 -5.4 -3.1

104.3

+76%

+497% +497%

7.4%

7.0%

1-6/00 1-6 1-6/99 I/99 1-6/00 I/00 1-6/99 I/99 Textile Systems
Semi-annual report 25.8.2000 / HRW-ip

1-6/00 I/00

1-6/99 I/99

1-6/00 I/00

1-6/99 I/99

Automotive Systems

Group

Group EBIT
Rieter Group

1st Half Year 2000: Cash Flow and Net Profit Rebound to 1998 Levels Cash flow
mio CHF 175 150 125 100 75 50 25 0 1998 1-6 1999 1-6 2000 1-6 5.0% 9.3% 7.5% 10.2% 135.1 107.2 142.4 12.5% 10.2% 5.9% 10.0%
40 20 0 1998 1-6 4.6% 1999 1-6 2000 1-6
Rieter Group

Net Profit
in % of co 15.0% mio CHF
100 83.2 80 60 6.3% 52.7 82.6 7%

in % of co
8%

5.9% 5.9%

6% 5% 4%

Semi-annual report 25.8.2000 / HRW-ip

Global Presence Employees by Countries 1st Half Year

India Canada 348 424 Brazil 561 Others 804
15% 15%

7% 3% 3% 7% 4% 4% 5% 5%

Switzerland 1'790

Others India 687 Switzerland Canada 351 1'958 383 3% 6% 3% 6% Brazil 3% 17% 3% 17% 517 4% 4%
13% 13% 9% 9% 8% 8% 6% 9% 9% 6%

13% 13%

Germany 1'505 USA 2'368 ICBT: 414 (included)*

USA 33 France 295

USA 2'491

20% 20% 9% 9% 8% 8% 4% 4% 12% 12%

22% 22%

Germany 1'495

Czech Rep. 1'112

Czech Rep. 1'092

Italy 966

Great Britain 476

France 1'420
China 86

Italy 962

Great Britain 646

France 1'040

2000: 11'897* (as at June 30)

Semi-annual report 25.8.2000 / HRW-ip

1999: 11'499 (as at June 30)

Rieter Group

Key Performance Data: Healthy Growth of 1st Half Year Results

January-June 2000 1'416 1 104.3 82.6 -9.7 2'381.9 878.8 11'897
2

mio CHF Sales EBIT Net profit Minorities Total assets Equity Number of employees
1

January-June 1999 1'184 59.3 52.7 -5.4 2'156.2 825.7 11'499

Change in % 20 76 57 80 11 2 6 3

2000: includes 2 months of ICBT acquisition

Approx. 200 mio assets from ICBT

Semi-annual report 25.8.2000 / HRW-ip

Rieter Group

Key Data Per Share are up also

Rieter registered shares of 10 CHF nominal value Bloomberg: RIEN, Reuters: RITZn

2000

1999

Change in %

Shares issued with dividend rights (per June 30) Average shares (of period) Earnings per share 2 Cash flow per share Share price (high/low)
CHF CHF CHF

4'205'526 4'205'526 1 17.33 31.55 571/461

4'205'526

4'258'238 1 11.11 23.90 472/395

-1.2 56 32

1 2

Adjusted for share split 2 for 1 in June, 2000. Not included 348'900 1 potential shares ex convertible bond issue, due October 2002. Rieter Group

Semi-annual report 25.8.2000 / HRW-ip

Price Chart; Rieter Registered Shares

CHF 700 600 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000
Rieter Group

Aug. Aug. 24, 24, 2000: 2000:

597

Semi-annual report 25.8.2000 / HRW-ip