London, September 25 2003

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STAR COMPANY PRESENTATION
London, September 25 2003
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Contents

• Equity Story
• Targetti Group and the lighting market
• Key succes factors market strategy and
  diversification
• Financials
• The 3 business areas in 2003
• What next
• Back up slides

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Equity Story
Official price (Sep 10 2003) Euro 3,02 Market
cap. (millions of euro) 53,5 No. of shares
(millions) 17,7 Free float 32.99 2003 Max/Min
Euro 3,27 / 2,76 Average volume
daily 2003 1m 6,578 3m 8,694 6m
8,909 Payout Ratio 97/02 gt 40

• Leading group in architectural lighting for
  interiors and exteriors
• Technological driver, product innovation and
  brand recognition
• Steady growth trend, even in a difficult market
• Revenues 97-02 (CAGR) 18.5
• EBITDA 97-02 (CAGR) 23.0
• EBT 97-02 (CAGR) 26.8

2001
2000
1999
1998
1997
1996
2002
Euro/000
101,298
79,194
60,116
54,602
46,940
128,314
Revenues
130,240
16,583
20,846
13,460
13,005
9,530
8,652
6,019
EBITDA
7,043
9,296
7,903
9,421
7,158
4,245
13,828
EBIT
3,319
5,322
2,591
4,135
3,494
2,742
1,154
Net Profit
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Relevant Corporate Clients
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Diversification as a response to cyclicity
REVENUES per BUSINESS AREAS, as of June 30, 2003
(millions of Euro)
LIGHTING SOURCES 7,3 mln (11.5)
EXTERIORS and PUBLIC LIGHTING 20,6 mln (32.5)
INTERIOR LIGHTING 33,7 mln (53.0)
Note Other residual businesses (Duratel) account
for 1,9 mln (3)
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Financials

• Consolidated Income Statement (Full Year)
• Consolidated Income Statement (1st Half)
• Consolidated Income Statement (1st and 2nd
  Quarter)
• Consolidated Balance sheet

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Consolidated Income Statement (Full Year)
1998 1999 2000 2001
2002 Var. 02/01 REVENUES
60,1 79,2 101,3 128,3
130,2 1.5 EBITDA
9,5 13,0 13,5 16,6
20,8 25.7 (as of revenues)
15.9 16.4 13.3
12.9 16.0 Goodwill
- (0,5) (1,2)
(1,3) (1,3) - Depreciat.
and Provis. (2,4) (3,1)
(4,3) (6,0) (5,7) -
4.5 EBIT
7,2 9,4 7,9
9,3 13,8 48.8 (as of
revenues) 11.9
11.9 7.8 7.2
10.6 EBT
6,6 8,0 6,7
7,1 11,4 61.3 (as of
revenues) 11.1
10.1 6.6 5.5
8.8 NET PROFIT 3,5
4,1 2,6 3,3
5,3 60.3 (as of revenues)
5.8 5.2
2.6 2.6 4.1
(millions of Euro)
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Consolidated Income Statement (1st Half)
1H02
1H03
1H01
Revenues
67,13 100
63,51 100
62,08 100
(millions of Euro)
EBITDA EBIT EBT NFP
10,98 16.4 7,30 10.9 5,62 8.4
(31,74)
7,45 11.7 4,26 6.7 2,63 4.1
(33,69)
6,41 10.3 3,00 4.8 2,06
3.3 (33,11)
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Consolidated Income Statement (1st and 2nd
Quarter)
2002
2003
2001
Q1 Q2
Q1 Q2
Q1 Q2
Revenues
31,26 35,87
31,17 32,33
29,17 32,9
(millions of Euro)
EBITDA EBITDA margin EBIT EBIT margin EBT
3,41 4,04 10.9 12.5 1,81
2,45 5.8 7.6 1,23
1,41
2,85 3,57 9.8 10.8 1,38
1,63 4.7 5.0 0,90 1,16
3,52 7,46 11.2 20.8 1,72 5,59
5.5 15.6 1,14 4,48
Not audited
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Consolidated Balance Sheet
1999 2000 2001 2002 1H02 1H03 NWC 21,4 26,2 40,
5 44,2 48,7 52,7
Fixed Assets 24,3 35,7 37,6 35,0 36,1 34,6
Capital Employed 42,1
58,0 72,6 73,3 79,3 81,4
Shareholders Equity 30,3 37,6 43,9 47,1
47,6 47,7 Net Financial
Debt (11,7) (20,4) (28,7) (26,2) (31,7) (33,7)

(millions of Euro)
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The 3 business areas in 2003
1. Interior Architectural Lighting 2. Exteriors
and Public Lighting 3. Lamps
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Interior Architectural Lighting
1H02
1H03
1H01
33,69
39,23
41,99
Revenues
3,43 10.2 1,32
8,39 20.0 5,97
3,13 8.0 0,88
EBITDA EBITDA margin EBIT
(millions of Euro)

• Considerable decrease in
• Volumes
• Margins

• mainly due to Targetti Sankey S.p.A.
• affected by volumes reduction of Targetti Sankey
  S.p.A.
• extra costs due to Group re-organization

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Exteriors and Public Lighting

• Confirming an excellent growth path, particularly
  in Public Lighting 1H03 ?

• Revenues 20,64 16.4
• EBITDA 2,97 24.7
• EBITDA margin 14.4
• EBIT 1,99 64.1

(millions of Euro)

• Maximizing efficiencies in Exteriors (Extérieur
  Vert), through a progressive integration of
  industrial structure in Targetti Sankey S.p.A.

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Lamps

• Lamps is the business area with the higher growth
  rate

1H03 ?

• Revenues 7,29 20.3
• EBITDA 0,84 385.9
• EBITDA margin 11.5
• EBIT 0,79 544.9

(millions of Euro)

• Strategic opportunity in an oligopolistic market
  (major international players Philips, Osram e GE)

• Excellent results from the Chinese JV, in terms
  of costs and product development

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What next

• Lighting and architectural lighting market will
  suffer until the end of the year, at least

• Our aim is to keep on outperforming the lighting
  market

• Even if important results have been reached,
  optimisation of internal efficiency is still a
  priority

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Back up slides

• Shareholders Structure
• Stock Performance
• Corporate Governance
• Contacts

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Shareholders Structure
Targetti Giampaolo 46.02 Domenico Neri Srl
15.25 Orlandi Antonio 5.74 Henderson
Investors 3.39 Nextra IM Sgr 2.92 Rest
of the market 26.68
Stock Option Plan (2003 2007) Relating
1.500.000 shares (8.5 of Share Capital).
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 (Jan 02 2003 - Sep 15 2003)
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Corporate Governance

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

Remuneration Committee Orlandi, Marchi, Varaldo
Internal Control Committee Orlandi, Marchi,
Varaldo
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Contacts
Fabio Norcini Ph. 39 055 37 91
299 E-mail f.norcini_at_targetti.it Investor
Relations Manager Web site www.targetti.it