Howden Overview © Howden Group 2013 GAS & FLUID HANDLING LEADING GLOBAL MANUFACTURER OF HEAVY-DUTY FANS, COMPRESSORS AND FLUID HANDLING SOLUTIONS FOR USE IN DEMANDING APPLICATIONS KEY STRATEGIES/FOCUS • Exploit environmental opportunities SPECIALTY CENTRIFUGAL PUMPS GAS COMPRESSORS • Grow in oil & gas market • Increase aftermarket and services capture POSITIVE DISPLACEMENT PUMPS LUBRICATION SERVICES Source: Company filings © Howden Group 2013 2 ROTARY HEAT EXCHANGERS HEAVY-DUTY FANS FABRICATION TECHNOLOGY #2 GLOBAL MANUFACTURER OF WELDING & CUTTING PRODUCTS; TECHNOLOGY & INNOVATION LEADER KEY STRATEGIES/FOCUS • Build customer responsiveness • Aggressively improve operations WELDING & CUTTING CONSUMABLES WELDING EQUIPMENT CUTTING EQUIPMENT • Strengthen organizational structure and talent • Drive differentiated product/ application development PERSONAL PROTECTIVE EQUIP. GAS APPARATUS WELDING & CUTTING AUTOMATION Source: Company filings © Howden Group 2013 3 Company Overview Company relationships Howden is a subsidiary of Colfax Corporation, as are ESAB and Colfax Fluid Handling. Colfax Fluid Handling ESAB Howden • Precision pumps and systems • Sales in 2012 – $646m • Employees in 2012 – 2200 • Welding and cutting equipment • Sales in 2012 – $2,000m • Employees in 2012 – 6900 • Fans, heat exchangers and compressors • Sales in 2012 – $1,255m • Employees in 2012 – 4400 © Howden Group 2013 4 Strategic Vision To be the world’s leading Number one in the segments we choose to operate in application engineer Where our knowledge of product and process makes a difference providing lifetime solutions From project inception to plant decommissioning in air and gas handling Performance critical products which move, treat, clean, heat or cool gases incl. air © Howden Group 2013 5 Howden History © Howden Group 2013 6 History Technical pedigree Development of the forced draught system for boilers (1882), dramatically reducing fuel consumption. The commercialisation of screw compressors in the 1940s and development of oil injected screw compressors. Development of the rotary regenerative air preheater in conjunction with Frederik Ljungström of Sweden in the 1920s. Other technical firsts • Invention of the ‘Sirocco’ fan with forward curved blades. • Invention of the diaphragm compressor by H Corblin. • The development of the aerofoil bladed centrifugal fan. © Howden Group 2013 7 History Acquisition timeline – The growth of the Howden organisation KWCA / Howden Ventiladores Airscrew Turbowerke Meissen (TMH) (1898) Burton (1884) Corblin Aeolus (Brazil) Thomassen Compression Systems JAMES HOWDEN 1854 1971 1974 1988 1991 1993 1995 1997 2008 2010 2011 2012 Carter Stork Canadian Blower Ventilateurs Neu American Blower Berry Westinghouse Davidson ‘Sirocco’ (1898) Buffalo Forge (1878) Voith Novenco Aerex Joy Green (New Philadephia) (1904) AustCold Covent Fans Bryan Donkin (1803) Engart Sheldon Nordisk Ventilator ‘Variax’ (1947) Sturtevant (1860) © Howden Group 2013 8 Organisation Organisational Structure Our companies are organised into one regional and three global divisions with a strong segment focus. Howden Heavy Fans & Heaters Compressors Industrial Fans Africa Power, Mining, Steel Oil and Gas Other Processes Region Segment marketing & Key Account Management (KAM) Segment marketing & KAM Segment marketing & KAM Segment marketing & KAM Howden Denmark Howden Ventilatoren Howden North America Howden BC Compressors and other subsidiaries Howden Covent Howden Power Howden UK Howden Hua Howden Thomassen and subsidiaries Howden France Howden Fan Equipment Howden Netherlands Howden India Howden Compressors Howden Process Compressors Howden Turbowerke Howden Projects L&T Howden Howden Australia AustCold Howden South America Russia / Middle East Sales Offices Howden Spain © Howden Group 2013 Map key Howden Donkin Product Company Regional Company Joint venture with L&T in India 9 Organisation Leadership Team Ian Brander CEO John McKnight Exec Director Industrial Fans © Howden Group 2013 James Brown Sam Strahan Financial Director Programme Director Greg Duffy Ken Ramsay Head of Risk Management Marketing Director Rosie Garrigan Donna Malone Chief Legal Counsel HR Director Elias Zabaneh Exec Director Heavy Fans & Heaters Jim Fairbairn Thomas Bärwald Exec Director Compressors Exec Director Howden Africa 10 Organisation Global Presence We employ 4400 people in 23 countries throughout the world. Australia – Brazil – Canada – Chile – China – Denmark – Dubai – France – Germany – India – Mexico – Netherlands – Russia - Singapore – South Africa – South Korea – Spain – Taiwan – Thailand – United Kingdom – USA – Venezuela – Vietnam © Howden Group 2013 11 Organisation Global Locations Our global footprint covers our major markets and potential markets. Chesterfield Rheden Birkerød Glasgow/Renfrew Næstved Montreal Canton New Philadelphia Buffalo Plymouth Meeting Raleigh Columbia Hengelo Belfast Kingswinford Lille Paris/Nogent Oran Moscow Warsaw Coswig Weihai Heidenheim Beijing Cartagena Delhi Dubai Monterrey Seoul Xi’an Mexico City Wuhan Chengdu Pune Taipei Guangzhou Bangkok Caracas Tokyo Shanghai Hong Kong Singapore Sao Paolo Rio de Janeiro Sasolburg Johannesburg Santiago Port Elizabeth Map key © Howden Group 2013 Sales office Site with no manufacturing Sydney Melbourne Site with manufacturing 12 Products and Services Products High integrity fans, heat exchangers and compressors for key industries which demand the highest levels of efficiency, reliability and availability. Centrifugal fan Axial fan Rotary heat exchanger Compressor Cooling fan Special and local products © Howden Group 2013 13 Products and Services Acquisitions Over the years Howden has acquired many well known technologies, companies and/or brands in the air and gas handling field. Brand/Company Aerodyne Fans Fantecnic Fans Pitstock Fans Phoenix Fans Powermax Fans Wolf Fans Wheeler Fans Aeolus Canadian Blower Sheldon Fans Covent Fans Nordisk Fans Variax Fans Berry Fans Burton Corblin Compressors Periflow® Compressors Sofrair Blowers Ventilateurs Neu Turbowerke Meissen Voith Fans Airtech Fans Donkin Fans Majax Fans © Howden Group 2013 Main country Australia Australia Australia Australia Australia Australia Australia Brazil Canada Canada Canada Denmark Denmark France France France France France Germany Germany South Africa South Africa South Africa Brand/Company Safanco Fans Tallares Sanchez Luengo (TSL) Stork Fans Ventilatoren Sirocco Howden Thomassen Compressors Aerex Fans Airscrew Carter Fans Davidson Fans Donkin Blowers Engart Fans Godfrey Blowers Howden Sirocco Fans & Heaters James Howden Reavell Centrifugal Sirocco Waller American Blower Buffalo Forge Joy Green Fans Sturtevant Fans Westinghouse Fans Howden Buffalo Main country South Africa Spain The Netherlands The Netherlands The Netherlands United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom United Kingdom USA USA USA USA USA USA/UK 14 Products and Services Installed base Our extensive installed base demonstrates our experience and underpins our applications knowledge. Product Number Centrifugal fans 25,000 V.P Axial fans 3,000 Cooling fans 10,000 Heat exchangers 4,000 Screw compressors 35,000 Reciprocating compressors 12,500 Turbo compressors 1,250 © Howden Group 2013 15 Products and Services Services Services to install, service and maintain plant through extended lifetimes. Plant refurbishment and upgrades to enhance performance and efficiency. Erection Spare parts supply Retrofitting Commissioning Servicing Plant upgrades © Howden Group 2013 16 Markets Major utility and process industries We operate in a wide range of industries, which underpin today's modern industrial society. Power generation Oil/gas petrochemicals Iron and steel Mining Waste water treatment Cement manufacture © Howden Group 2013 17 Company overview Markets – General industrial We operate in a wide range of industries, which underpin today's modern industrial society. Tunnel ventilation Pulp and paper Transport and vehicles Refrigeration Industrial gases Defence © Howden Group 2013 18 Markets Sales by Industry and Region Our sales are made throughout the world to key process industries. By industry By region 18% 17% 12% 16% 11% 14% 49% 23% Industrial Mining Oil, Gas and Petrochem New equipment plus aftermarket (New equipment plus aftermarket) © Howden Group 2013 21% 19% Power RoW Europe N America China Africa Other Asia 19 Howden Culture Our Values CUSTOMERS TALK, WE LISTEN THE BEST TEAM WINS CONTINUOUS IMPROVEMENT (KAIZEN) IS OUR WAY OF LIFE VALUES INNOVATION DEFINES OUR FUTURE © Howden Group 2013 WE COMPETE FOR SHAREHOLDERS BASED ON OUR PERFORMANCE Howden Culture Colfax Business System CBS is our approach to becoming a world class organisation, our unique business management system. It is designed to achieve world-class performance and results by continuously eliminating waste in all processes, while constantly improving quality, delivery and cost. It demonstrates why we operate under the principle of Continuous Improvement and adhere to the philosophy that there is always a better way. © Howden Group 2013 21 Howden culture Talent Development Talent Development • We have a Talent programme which optimises the skills and capabilities of Howden employees ensuring alignment to current and future business needs. We implement a range of development activities and career paths that will our employees to develop and grow. Engineering Career Ladder • Our Engineering Career Ladder provides our Engineers with a robust and clear route to develop and further their career at Howden. Howden is proud of its engineers and their contribution to creating our reputation for Engineering Excellence Worldwide. We want to ensure that we recognize this contribution by providing career development paths and support for Howden engineers at all levels, allowing them to achieve their full potential. Howden Academy • Award winning Howden Academy is a suite of e-learning and a three week residential development programme in partnership with a leading university which we provide to our new and acquired engineers Developing Management Excellence • Our global leadership programme, 8 days of classroom education in conjunction with personality profiling & e-learning modules, being delivered to all of our managers in current and acquired businesses Our associates have an opportunity to grow, develop and work globally © Howden Group 2013 22 Thank you © Howden Group 2013