Milan, February 27 2003

1
2002 COMPANY RESULTS
Milan, February 27 2003
2
Contents

• Equity Story
• Lighting and Architectural Lighting
• Financials
• 2003 overview
• Investment Highlights
• Back up slides

3
Equity Story

• Official price (14/02/2003) Euro 2,99
• Market cap. (millions of euro) 52,9
• No. of shares (millions) 17,7
• Free float (30/01/2003) 28,92
• 2002 Max/Min Euro 3,37/2,71
• Average volume daily 2002 1m
  18.669 3m 16.456 6m 12.245
• Payout Ratio 97/01 gt 40
• P/E 2002 (Consensus) 9,4

• One of the top architectural lighting company in
  Europe
• Technological driver, product innovation and
  aggregating model
• Excellent growth trend
• Revenues 97-02 (CAGR) 18,5
• EBITDA 97-02 (CAGR) 21,3
• EBT 97-02 (CAGR) 25,8
• MIBTEL outperformer
• (over 30 in 2002)

Euro/000
2002
130.056
20.783
13.487
10.914
Not audited. Before taxes.
4
Lighting Market
European Lighting Market 10.8 billion Euro
5
Indoor and Outdoor Architectural Lighting

• A most profitable niche of Lighting Market
• - premium price is recognized (for the
  emotional impact of lighting needs)
• - higher budget from final clients (for the
  awareness of high quality lighting)

• Macroeconomic drivers
• - Public Expenditure
• - Real Estate Market
• - Consumer Confidence
• - GNP
• - Tourism
• - Wellness and Entertainment Needs

• Industry drivers

6
Architectural Lighting Targetti Groups
positioning
3 SUCCESS FACTORS
1. ACQUISITIONS STRATEGY 2. MARKET STRATEGY 3.
INTERNAL EFFICIENCY
7
1. Acquisitions strategy from COMPLEMENTARY
OFFER
8
1. Acquisitions strategy to GEOGRAPHIC
CONTROL
9
2. Market strategy
2002 figures
10
2. Relevant Corporate Clients
11
3. Internal efficiency
In 2002, increase of margins and higher
efficiency can be explained also by the
following indicators
2001 2002 Cost of Goods Sold / Net
Revenues 49,6 47,9
Commercial expenses and cost of commercial
personnel / Net Revenues 13,5 11,9
Financial interest / Net Revenues 1,9
1,5
excluding currency losses
12
Financials

• Consolidated Income Statement
• 4Q02 Vs. 4Q01 Income Statement
• Consolidated Balance Sheet
• Cash Flow, leverage and growth opportunities

13
Financials Consolidated Income Statement

• 1998 1999 2000 2001
  2002 Var. 02/01
• REVENUES 60.1 79.2 101.3
  128.3 130.1 1,4
• EBITDA 9.5 13.0 13.5
  16.6 20.8 25,3
• (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)
  (6.0) -
• EBIT 7.2
  9.4 7.9 9.3
  13.5 45,1
• (as of revenues) 11,9
  11,9 7,8 7,2
  10,4
• EBT 6.6
  8.0 6.7 7.1
  10.9 54,0
• (as of revenues) 11,1
  10,1 6,6 5,5
  8,4

(millions of Euro)
not audited
start of consolidation of Gruppo Neri
14
Financials 4Q02 Vs. 4Q01 Income Statement

• 4Q01 4Q02 Var. 02 / 01
• REVENUES 34.5 32.2
  -6,9
• EBITDA 4.9 3.5
  -28,8
• (as of revenues) 14,3
  10,9
• EBIT 2.8
  1.6 -42,1
• (as of revenues) 8,0 5,0
• EBT 2.2 0.9
  -61,6
• (as of revenues) 6,5 2,7

(millions of Euro)
Not audited
15
Financials consolidated Balance Sheet
1998 1999 2000 2001
2002 Var. 02/01 NWC 15.7
21.4 26.2 40.5 50.3
24,4 (as of revenues)
26,2 27,0 25,9 31,5
38,7 Fixed Assets
13,5 24.3 35.7
37.6 34.0 -9,4
Capital Employed 26.0 42.1
58.0 72.6 78.5
8,1 Shareholders Equity 26.7
30.3 37.6 43.9 52.6
19,9 Net Financial Debt
0.7 (11.7) (20.4) (28.7) (25.9)
-9,9
(millions of Euro)
before 2002 income taxes
start of consolidation of Gruppo Neri
16
Cash flow, leverage and growth opportunities
Healthy D/E ratio 1999 2000 2001 2002 D/E
0.39 0.54 0.65 0.49
Targetti Group financial position allows the
management to take into consideration any
interesting external growth opportunities
before 2002 income taxes
17
2003 Outlook
IN FEBRUARY 2002, WE PROMISED
TODAY, WE PREVIEW FOR 2003

• Another flat year for the lighting market

• Consolidation of EBITDA margin

• Increase of European markets control/presidium
  

• New business with relevant corporate clients

18
Investment Highlights

• Leader in Architectural Lighting

• Strong relationships both with specialized
  wholesalers, specifiers and corporate clients

• Aggregating model in European fragmented market

• Strong brand recognition (also outside the
  lighting market)

• Constant growth of volumes and margins, even in
  negative market conditions

• Outperforming MIBTEL over 30 since 2002

19
Back up slides

• Shareholders Structure
• Stock Performance
• Corporate Governance
• Contacts

20
Shareholders Structure (as of Consob, January 30
2003)
Targetti Giampaolo 46,02 Domenico Neri Srl
15,25 Orlandi Antonio 6,42 Henderson
Investors 3,39 Sevian Srl 3,39 Nextra IM
Sgr 2,92 Rest of the market
22,61
Lock up agreement Domenico Neri Srl undertakes
not to sell its shares for a period of three
years since September 27, 2001.
21
Stock Performance (02/01/02 - 30/12/02)
22
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
• Internal Control Committee
• Orlandi, Marchi, Sorbi
• Targetti Sankey joined the STAR segment in
  April, 01 2001.
• Indipendent Directors

Remuneration Committee Orlandi, Marchi, Sorbi
23
Contacts
Fabio Norcini Ph. 055 37 91 299 E-mail f.norcini_at_t
argetti.it Investor Relations Manager Web
site www.targetti.it