Christian Dalloz and Groupe Bacou create the world Personal Protective Equipment leader. May 30, 2001

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1 Christia Dalloz ad Groupe Bacou create the world Persoal Protective Equipmet leader May 30, 2001

2 Ruig order Key trasactio highlights P. Alfroid / P. Bacou I. Dalloz ad Bacou at a glace C. Balleyguier II. The ew PPE world leader C. Balleyguier III. Merits of the merger C. Balleyguier IV. Maagemet team C. Balleyguier V. Trasactio ecoomics B. de La Moradiere VI. Shareholders structure ad corporate goverace P. Alfroid

3 Key trasactio highlights Philippe Bacou Chairma Groupe Bacou Philippe Alfroid Chairma Christia Dalloz 3

4 A world leader is bor Dalloz (N 6 of the PPE idustry) ad Bacou (N 2) are creatig the world PPE leader with : the broadest product rage i the idustry market leadership i North America, Wester Europe ad Australia Well-geared for future growth Sigificat syergies potetial A high stock market visibility 4

5 The ew Group Mio * Sales EBITDA % of sales 18.4 % 18.3% 18.3 % EBITA % of sales 15.5 % 15.9% 15.8 % Market cap.** 246 /a 526 * Based o 2000 ormalized figures excludig o-recurrig expeses for Bacou ** Based o Dalloz oe moth share price : 85 5

6 Dalloz ad Bacou at a glace Claude Balleyguier CEO Christia Dalloz I 6

7 Dalloz ad Bacou at a glace Fouded Status Public Private/public Sales Mio 646 Mio EBITA 2000* 40 Mio 103 Mio Number of employees Maufacturig facilities * Based o 2000 ormalized figures excludig o-recurrig expeses for Bacou 7

8 Bacou, a world leader i safety products A leadership positio i the safety products idustry with two activities: - Maufacturig (84% of turover): head protectio, fall protectio, gloves, shoes ad clothig - Distributio i Frace oly (16% of turover) A group with strog US operatios (58% of 2000 sales) ad historical Europea presece (35%) Historical high levels of orgaic growth A history of successful itegratio: 16 acquisitios sice 1993 icludig Uvex (1994), Survivair (1997), Howard Leight (1998), Perfect fit Gloves (1999), Groupe Foi (1999), Whitig ad Davis (2000) A market leader i terms of profitability 8

9 Dalloz, a world leader i fall protectio A world-class maufacturer of persoal protective equipmet with two mai activities : fall protectio (49% of sales world leader) ad head protectio (47%) A worldwide group with balaced activities betwee North America (49% of sales) ad Europe (46%) Strog growth (50% i 3 years) through: Product iovatio : Miller Duraflex fall haresses, Safe-T-Fit respiratory devices, Milleia safety eyewear Successful acquisitios track record: Bilsom (1994), Pulsafe ad Troll (1996), Komet (1997), Moxham (1998), Soll ad Fedall (2000) Icreasig profitability (18.3% EBITDA margi) ad strog fiacial structure (33% gearig) 9

10 Bacou ad Dalloz by activity Bacou - Sales 2000 Dalloz - Sales 2000 Distributio PPE 16% Su leses 4% 84% Maufacturig PPE 96% Maufacturig PPE Shoes 8% Clothig 13% Fall 2% Eye/Face 29% Hearig 17% Respiratory 13% Gloves 18% Respiratory 17% Hearig 13% Eye/Face 19% Fall 51% 10

11 Bacou ad Dalloz by geographical segmets * Bacou - Sales 2000 Dalloz - Sales 2000 Frace 25% ROW 7% Frace 7% ROW 7% Wester Europe 10% US/Caada 58% Wester Europe 32% US/Caada 54% * PPE maufacturig oly 11

12 Dalloz ad Bacou, key fiacials (Mio ) DALLOZ BACOU Sales: + 16 % CAGR ( ) Sales: + 24 % CAGR ( ) EBITDA: + 13 % CAGR ( ) EBITDA : + 18 % CAGR ( )

13 The ew PPE world leader Claude Balleyguier CEO Christia Dalloz II 13

14 Idustry treds PPE market size: 11,5 b. Aual growth rate: 4-5% Key growth drivers: - maufacturig ad local authorities services employmet - govermet regulatios (EU, OSHA, NAFTA, GATT) for icreased compulsory use - Compliace (higher isurace premiums for compaies with poor safety records) Key ed-customers : maufacturig idustries, costructio, utilities A still highly fragmeted market o maufacturers side 14

15 Idustrial distributio 90% of reveue goes through idustrial distributio PPE accouts for a small share of their overall product offerig (Mio ) Hagemeyer Graiger Wurth Buzl/Greeham Fisher Airgas Howard Smith Orefi Midori Aze Bacou Protector Supply Arco PPE other products Cosolidatio arisig amog key distributio players 15

16 PPE world market (11.5 B ) Fall Protectio 5% Gloves 20% Head Protectio 35% Shoes 18% Clothig 22% 16

17 Two key players joi forces to build a world leader Mio Bacou -Dalloz 3M Bacou MSA Asell Aearo Dalloz Norcross Jallatte-Almar Scott Wells-Lamot Draeger Moldex DBI/Sala Head protectio Fall protectio Body protectio 17

18 A balaced product portfolio & geographical coverage Sales 2000 by busiess segmets Sales 2000 by geographical area 820 Mio Clothig 9% Gloves 12% Shoes 6% Eye/Face 26% (Excludig distributio) Wester Europe 17% ROW 7% Hearig 13% Respiratory 17% Frace 19% US/Caada 57% Fall 17% 18

19 Outstadig complemetary product rages Busiess World Market # World Market # World Market # Segmet Share Share Share Eye / Face 5% 6 21% 1 26% 1 Fall 22% 1 2% 6 24% 1 Hearig 6% 3 13% 2 19% 2 Gloves - - 5% 3 5% 3 Respiratory 2% 8 4% 7 6% 5 Head 1% % 10 Shoes - - 2% d 2% d Clothig - - 3% d 3% d Total PPE 2.3% 6 5.1% 2 7.4% 1 Source : Dalloz maagemet estimates 19

20 A diversified portfolio of well kow brads Dalloz s cotributio Bacou s cotributio + 20

21 Merits of the merger Claude Balleyguier CEO Christia Dalloz III 21

22 Summary Creates the world PPE leader with 7.5% market share. Also : No 1 i North America (11% market share) No 1 i Wester Europe (9%) No 1 i Frace (28%) A true head-to-toe PPE supplier with a complete product rage High potetial syergies estimated i excess of 30Mio i 2004 Sigificat opportuities for sales upside A critical mass to grow i emergig markets A decisive hub for further exteral growth i a fragmeted idustry 22

23 Two compaies joi their stregths Bacou brigs segmet leaderships (21% market share i Eye/face), North America market leadership ad operatioal excellece, product diversity ad market leadership i Frace Dalloz brigs a global orgaizatioal model, strog market positios i Wester Europe ad Australia, ad world leadership i Fall protectio (22% market share) The merger respods to the wish of key distributors to cosolidate supply sources Both compaies have a successful track record i itegratig acquisitios (sice 1993, Dalloz : 8, Bacou : 16) 23

24 Strategic priorities Short term : Build up of a ew global maagemet structure Divestiture of Bacou Developpemet (distributio) Cosolidatio of ERP systems Strategic parterships with distributio Medium term : Executio of syergies - sales & marketig - maufacturig & logistics - procuremet & SGA Strategic acquisitios as debt reduces 24

25 Cost savigs objectives : i excess of 30 Mio by 2004 Aual cost savigs i 2004 Idustrial syergies 60 % Operatig syergies 40 % 100 % Idustry US 25% IT Costs 12% Purchasig 14% Idustry Europe 22% Logistics US 4% SG&A 23% Oe-time costs of approximately 40 Mio 25

26 Ratioalisatio of US ad Europea operatios US operatios Europea operatios Reductio by oe third of the total umber of US sites Cosolidatio of Dalloz Head protectio operatios i Bacou factories : Cosolidatio of Bacou ad Dalloz labor itesive operatios i developig coutries : Easter Europe i the US (automatio) Far-East i Mexico (labor itesive jobs) Cosolidatio of Fall protectio factories 26

27 Operatig syergies (US & Europe) SG&A Logistics Cosolidatio of admiistratio, accoutig ad HR activities Cosolidatio of marketig ad commuicatio activities Cosolidatio of operatios ito a commo IT ifrastructure Cosolidatio of sales orgaizatios Cosolidatio of product maagemet ad egieerig activities withi each busiess segmet Set up of cetral warehousig facility i the US (6 locatios i Bacou, 2 i Dalloz curretly) Set up of cetral warehousig facility i Europe, followig divestiture of Bacou Developpemet Set up of global purchasig fuctio i order to beefit from ecoomies of scale Cosolidatio of customer service operatios 27

28 Potetial sales upsides, low potetial sales erosio Strog growth opportuities Techology trasfers (Triosy) Sales outside US & Frace Strategic supplier status at key distributors ad limited overlaps Respiratory i the US Fall protectio i Frace Target orgaic growth: 6-7% per aum Objective of aual double-digit EBITDA growth over the ext four years 28

29 Maagemet team Claude Balleyguier CEO Christia Dalloz IV 29

30 Dalloz ad Bacou teams are actig together A maagemet team combiig Bacou & Dalloz key executives with iteratioal busiess experiece, plus some outside talet. A global matrix structure (Global Product Busiess uits, Regioal Marketig Busiess uits) backed up by a strog fuctioal team (Fiace, HR, Operatioal Excellece) A motivatioal maagemet icetive pla (stock-optios) returig to maagemet a fair share of value creatio 30

31 Target orgaizatio structure* Head P. BARR 500m Fall J. REIMER 150m Body TBA 230m Americas A. BENNETT 520m Frace G. HEDOUIN 210m Eye / Face Hearig Respiratory Fall Gloves Shoes Clothig Europe & ROW P. ODE 150m Fiace Huma Resources Op. Excellece Bus. Devt B. de la MORANDIERE TBA S. HEBERT P. BARR * Post divestiture of Bacou Developpemet 31

32 Trasactio ecoomics Brice de La Moradiere CFO Christia Dalloz V 32

33 Merger terms Merger to take form of a cash ad stock acquisitio by Dalloz of 100% of Groupe Bacou shares, after buy-out of Bacou USA miority shareholders Buy-out of Bacou USA miority shareholders to take place simultaeously with closig at a price of 28.5$ per share, fiaced by debt (179Mio ) Bacou shares partly acquired for cash (236Mio ) Dalloz to issue 3.3 millio ew shares for the acquisitio of the remaiig Bacou shares : 2.6 millio shares to be retaied by former Bacou shareholders Balace to be cotemporaeously sold by former Bacou shareholders to Uio d Etudes et d Ivestissemets (Crédit Agricole Group), Mme Dalloz ad Essilor 33

34 Trasactio syopsis Use of fuds (Mio ) Source of fuds (Mio ) Acquisitio of Groupe Bacou shares 516 New Dalloz shares (3.3m) 280 Buy-out of US miority shareholders 179 Equity 280 Assumptio of existig Bacou debt 183 Acquisitio debt Refiacig of existig Bacou debt Debt 598 TOTAL 878 TOTAL

35 A ew equity story A pure play, a market leader, listed o the Euroext Premier Marché Pla for a market offerig with a view to icreasig the float up to 50% of the share capital through : a 150 Mio capital icrease up to 90 Mio public sale of shares by Bacou shareholders A elarged market capitalizatio: Before capital icrease* After capital icrease** 526 Mio 676 Mio * Based o Dalloz oe-moth average stock price of 85 /share ** Assumig a 150 Mio capital icrease 35

36 Fiacial impact o Dalloz The trasactio will have a strog accretive impact o Dalloz EPS before goodwill, exceptioal costs ad syergies After amortizatio of 345 Mio acquisitio goodwill, the trasactio will have a techical dilutive effect o Dalloz EPS i 2001, which will be elimiated whe syergies kick-i Impact o fiacial structure: Before capital icrease After capital icrease* Net fiacial debt (30/06/01) Net fiacial debt / - Proforma 2000 EBITDA (excludig syergies) - Proforma 2000 Cash-Flow (excludig syergies) * Assumig a 150 Mio capital icrease x 3.2 x 7.6 x 5.6 x 36

37 Shareholders' structure ad corporate goverace Philippe Alfroid Chairma Christia Dalloz VI 37

38 Impact o Dalloz capital structure Simultaeously to the completio of trasactio, Fiacière Dalloz ad Dalloz will merge Before Merger After Merger Capital Votig rights Capital Votig rights Mrs Dalloz 30,5 % 37,8 % 16,1 % 23,9 % Essilor 30,3 % 37,6 % 18,6 % 25,6 % Former Bacou shareholders ,9 % 30,9 % UI ,0 % 5,4 % Public 39,2 % 24,6 % 18,3 % 14,3 % Total 100,0% 100,0% 100,0% 100,0% Shares of former Bacou shareholders, Essilor ad Mme Dalloz, will be subject to a 2 year lock-up (except for the potetial 90 Mio secodary reserved to former Bacou shareholders) 38

39 Board membership ad corporate goverace Board with two co-chairme : Philippe Bacou ad Philippe Alfroid CEO: Claude Balleyguier Strategic committee (headed by Philippe Bacou), compesatio committee ad audit committee 11 board members: 3 from Dalloz 3 from Bacou 3 Idepedets 1 for Uio d Etudes et Ivestissemets Claude Balleyguier 39

40 Projected timetable May 30: Sigig ad aoucemet of Trasactio Jue/July: Ati-trust clearace (Hart Scott Rodio) US miority buy-out expected to be completed by ed of July (a coditio precedet to the closig of the Trasactio) Ed of July: EGM of Dalloz to approve the Trasactio Goal is withi 12 moths after closig for a public offerig of Dalloz shares 40

41 Key features of the merger Creatio of the world PPE leader High complemetarity of busiesses Substatial growth opportuities Strog recurrig cash-flows Sigificat syergies aticipated A experieced maagemet team with a successful track record i itegratig busiesses 41

42 Appedices 42

43 Key fiacial structure iformatio Mio * Before capital icrease After capital icrease ** Shareholders equity Net fiacial debt 30/06/01) Gearig (based o shareholder s equity) 171 % 97 % Gearig (based o market 85 ) 130 % 79 % Net fiacial debt/ebitda 4.1 x 3.2 x * All figures based o 2000 ormalized figures except otherwise oted ** Assumig 150 Mio capital icrease 43

44 The ew Group Without Distributio Sales 2000 : 820 Mio EBITDA 2000* : 163 Mio EBITDA Margi : 19.8 % EBITA 2000* : 142 Mio EBITA Margi : 17.3 % Market capitalizatio** : 526 Mio * Based o 2000 ormalized figures excludig o-recurrig expeses for Bacou ** Based o Dalloz oe-moth share price: 85 44

45 Bacou 2000 Normalized Fiacials Bacou Bacou Bacou m USA Europe Group Net Sales Cost of Sales Gross Profit Operatig Expeses Trasactio costs & o recurrig expeses (5) (4) (10) EBITA (ormalised) % margi 22,9% 7,9% 15,9% Amortizatio of Itagible Assets Iterest, et (11) (3) (14) Pre-tax icome (ormalised) Icome Taxes Miority Iterests 0 (0) (0) Net Icome (ormalised) Net icome (pre-exc., pre-gw) % margi 13,7% 4,4% 9,4% EBITDA (ormalised) % margi 25,9% 9,6% 18,3% Note : pro forma after buy-out of Bacou USA miority shareholders 45

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