Ratos Ab Class A · OMXSTO:RATO_A

Ratos Ab Class A — GS-Hydro — Investor Day (March 2013)

20 slides from Ratos Ab Class A's investor day presentation, Mar 14, 2013

  1. Slide 1: GS-Hydro

    GS-Hydro CEO Pekka Frantti Ratos’s Capital Market Day March 2013

  2. Slide 2: GS-Hydro in brief

    GS-Hydro in brief Leader in non-welded piping solutions With global market coverage  Non-welded piping solutions….  Headquarter and production in Finland – Complete piping systems – Production of the GS-flanges and – Customized piping modules other GS-Piping components – Piping products  Global p

  3. Slide 3: GS-Hydro focuses on the non-welded piping technology

    GS-Hydro focuses on the non-welded piping technology Benefits versus welded piping………….  Superior cleanliness  Optimized flexibility  Documented quality  Environmental friendliness  Cost savings throughout the system lifetime: – Cost effective to construct – Lower total installed system cost an

  4. Slide 4: GS-Hydro combines own products with products from partners

    GS-Hydro combines own products with products from partners GS-Hydro’s connection technology Products from suppliers  GS-Retain Ring Flange System  Pipes and tubes  GS-37° Flare Flange System  Hoses  GS-90° Flare Flange System  Clamps  Primarily used for pipe diameters  Fittings above 42mm 

  5. Slide 5: GS-Hydro's offering can be adapted to customers' varying needs

    GS-Hydro’s offering can be adapted to customers’ varying needs 14.3.2013 Presentation of GS-Hydro 5

  6. Slide 6: Global presence

    Global presence 2012 geographic sales split America Asia Norway Other Europe Other Nordics 14.3.2013 Presentation of GS-Hydro 6

  7. Slide 7: GS-Hydro serves three customer segments

    GS-Hydro serves three customer segments Offshore Marine Land based Share of sales 2012 56% 16% 28% 14.3.2013 Presentation of GS-Hydro 7

  8. Slide 8: Offshore

    Offshore Applications – Most offshore structures, e.g. drilling rigs, support vessels, FPSOs etc. Non-welded penetration – High Segment specific benefits of non-welded solutions – No “hot work” – High pressure systems – Requirements for cleanliness Market development and outlook – Strong market deve

  9. Slide 9: Marine

    Marine Applications GS-Hydro’s products mainly used in hydraulic intense specialty vessels like dredgers, tugboats and Ro-Ros – Hydraulics (winches, cranes, propulsion, etc) – Fire extinguishing systems Non-welded penetration – Low (higher in GS-Hydro’s targeted vessel segments) Segment specific ben

  10. Slide 10: Land based

    Land based Applications GS-Hydro’s products are used in a wide range of applications in several industries such as: – Metals & Mining – Pulp & Paper – Recycling – Testing Non-welded penetration – Low Market development and outlook – Impacted by the global economic slow down, stable but sub par growt

  11. Slide 11: Competition

    Competition  Primary competition comes from welded technology  In the non-welded segment, competition is highly fragmented: ̶ Local pipe fitting companies ̶ Global component and material suppliers ̶ Piping system suppliers – Parker Hannifin – Tube-Mac 14.3.2013 Presentation of GS-Hydro 11

  12. Slide 12: GS-Hydro's competitive strengths

    GS-Hydro’s competitive strengths  Technology benefits  Brand name and track-record  Large installed base  Broad offering to serve customers’ varying needs  Flexible value chain  Global presence with foothold in growth markets 14.3.2013 Presentation of GS-Hydro 12

  13. Slide 13: Financial development 2005-2012

    Financial development 2005-2012 MEUR EBITA margin 180 20% 160 159 155 16% 140 142 141 120 130 119 12% 100 106 11,5% 11,1% 9,1% 80 10,3% 8% 60 69 7,5% 5,4% 40 4% 2,1% 2,9% 20 0 0% 2005 2006 2007 2008 2009 2010 2011 2012 EBITA (MEUR) 3,7 10,9 16,31 17,6 10,6 2,8 3,4 14,1 Sales EBITA margin 1) Excludin

  14. Slide 14: Strategic intents for 2013-2015

    Strategic intents for 2013-2015 1. High customer value and deep customer relationships 2. Offshore driven growth Financial targets: 3. After sales business growth Organic growth: >10% p.a. EBITA margin: >10% 4. Global operating model 5. Preferred employer with winning culture 14.3.2013 Presentation

  15. Slide 15: Thank you

    Thank you 14.3.2013 Presentation of GS-Hydro 15

  16. Slide 16: GS-Hydro

    GS-Hydro Henrik Blomé 14 March 2013 1

  17. Slide 17: Ratos's investment in GS-Hydro

    Ratos’s investment i GS-Hydro  GS-Hydro’s previous parent company Arcorus was part of the Atle acquisition in 2001 - 2005: Split-up of Arcorus into Hägglunds Drives and GS-Hydro  Investment details - Ownership: 100% - Gross investments: SEK 226m - Received distributions: SEK 576m - Net distributio

  18. Slide 18: History of strong organic growth

    History of strong organic growth - Sales CAGR 1994-2012: 13% Sales (MEUR) 160  Growth of underlying segments 140 120  Technology penetration 100 80  Geographic expansion 60 40  Expansion of service and 20 product offering 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20

  19. Slide 19: Investment attractions

    Investment attractions  Positive growth fundamentals in underlying markets  Leading niche position - Winning technology - Brand name and a reliable business partner for leading customers - In depth knowledge of customers’ applications - Global market coverage - Solutions provider  Proven growth s

  20. Slide 20: RATOS

    RATS

GS-Hydro — Investor Day (March 2013) on 6ix