Rotating Equipment Services Peter Alexander, Division President | February 12, 2015 Capital Market Day 2015 Rotating Equipment Services | Capital Market Day 2015 | slide 2 Agenda – Rotating Equipment Services Point of Departure Summary Sulzer Full Potential for RES Mission & Strategy Operational Excellence
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Rotating Equipment Services
Peter Alexander, Division President | February 12, 2015
Capital Market Day 2015
Rotating Equipment Services | Capital Market Day 2015 | slide 2
Agenda – Rotating Equipment Services
Point of Departure
Summary
Sulzer Full Potential for RES
Mission & Strategy
Operational Excellence
Rotating Equipment Services | Capital Market Day 2015 | slide 3
The best of two worlds: OEM and independent services…
BU AME
BU EMEA
BU APAC
US, Canada Mexico Brazil, Argentina Colombia, Venezuela
UK, Germany Netherlands, Norway France, Spain Middle East, Russia
Australia Indonesia, India China, Singapore
Equipment serviced
PumpsOEM and 3rd party
ElectricalGenerators and Motors
We are well positioned to become the worldwide preferred and integratedrotating equipment service provider
with the best and broadest technical capabilities available
TurboTurbines and Compressors
Rotating Equipment Services | Capital Market Day 2015 | slide 4
….with a unique service proposition for our customers
Single point of service reduces customer costs and complexity
Gas and steam turbines, centrifugal
compressors, pumps, motors, generators
100 locations in 25 countries
OEM and non-OEM expertise
Solving our customersproblems
True servicemindset
Bestquality
andtechnology
Broadest rangeof capabilities
Globalreach and
localpresence
Rotating Equipment Services | Capital Market Day 2015 | slide 5
Rotating Equipment Services | Capital Market Day 2015 | slide 6
Market outlook generally positive despite unclear development in the oil and gas market
AME
EMEA
APAC
Oil and Gas Power General Industry
Low oil price might extend usage cycle of equipment
EU capacity reduction
Developing market
New investments driven by low gas prices
Scale back of conventional in Europe; Opportunities in MEA
Continuous growth of ISP opportunities
Mining in Latin America with improvement
potential
Industrial base (especially UK) declining
in Europe
Stability in Australia, opportunities in China
Our short-term market outlook
Source: Market reports; Management opinion
Rotating Equipment Services | Capital Market Day 2015 | Slide 7
Leading position in growing and sustainable markets
#2 service provider in addressable market OEM share ~70%
Gas Turbines
Steam Turbines
Electrical
Pumps
#2 service provider in addressable market OEM share ~65%
#3 service provider in addressable market OEM share ~55%
#2 service provider in addressable market OEM share ~55%
Compressors
#1 service provider in addressable market OEM share ~30%
Our market position
Large installedbase
Headroom for growth in the
markets
Future-proof machines
Ready for new technologies
Large installed base and growth opportunity
Rotating Equipment Services | Capital Market Day 2015 | slide 8
Agenda – Rotating Equipment Services
Point of Departure
Summary
Sulzer Full Potential for RES
Operational Excellence
Mission & Strategy
Rotating Equipment Services | Capital Market Day 2015 | Slide 9
The worldwide preferred and integratedrotating equipment service provider with
the best and broadest technical capabilities available
Mission and growth drivers for Rotating Equipment Services
RES Mission
Operational Excellence
Combine offer, optimize sites
Close white spots
Access new segments and services
Partnerships and joint ventures
Provide more services to more customers
Rotating Equipment Services | Capital Market Day 2015 | slide 10
Our global footprint of over 100 service locations enables us to offer more services to more customers
Turbomachinery
Pumps
Electromechanical
Capability of Service Center
Service center
RES HQ
Planned service center
Type of location
UK:24 SCs
Rotating Equipment Services | Capital Market Day 2015 | slide 11
Success stories: Leveraging RES structurein all regions
Tallgrass Pony Express Pipeline project Installation and commissioning of 15 pump / motor skids Insourcing of the installation service
PCK Refinery overhaul project Compressor repair and retrofit in NL, DE, and CH Leverage existing relationship
Singapore and Indonesia full scope Simplified service selection for a customer Offering the full service portfolio out of one shop
Americas
EMEA
Asia-Pacific
Rotating Equipment Services | Capital Market Day 2015 | slide 12
Agenda – Rotating Equipment Services
Point of Departure
Summary
Sulzer Full Potential for RES
Operational Excellence
Mission & Strategy
Rotating Equipment Services | Capital Market Day 2015 | Slide 13
Sulzer Full Potential: Spare parts growth and optimization of service branch network
Spare Parts Full Potential Optimization Service Branch Network
Individual branch action plans per branch for all product types
Co-location, right sizing and operational improvements of service branches for substantial cost improvements
Capability transfer for offering extensions of branches across products
Optimization across entire spare parts value chain
Improved manufacturing and sourcing
Pricing optimization and sales improvement
Streamlining of organization and processes
Service full potential
Rotating Equipment Services | Capital Market Day 2015 | slide 14
Agenda – Rotating Equipment Services
Point of Departure
Summary
Sulzer Full Potential for RES
Vision & Strategy
Operational Excellence
Rotating Equipment Services | Capital Market Day 2015 | Slide 15
RES delivery in line with Sulzer vision
Significant cost savings potential from functional integration
Single contact point for customers to Sulzer services
Reduced organization complexity
We are working together for the benefit of Sulzer
Performance-critical equipment and service solutions
Technology and market leadership
Shared KPI’s with PE
Sharing of common market information between divisions Harmonized front-
end, leveraged relationships Know how and
expertise leveraging globally Combined market
and regional approach
One Focused Market-oriented
Rotating Equipment Services | Capital Market Day 2015 | slide 16
Great market proposition with our combined offering
Focusing on operational excellence
Opportunities to grow geographically and through acquisitions
Rotating Equipment Services: Generating value by providing “more services to more customers”
Be the worldwide preferredand integrated rotating
equipment service provider with the best and broadest
technical capabilitiesavailable
Rotating Equipment Services | Capital Market Day 2015 | slide 17
This document may contain forward-looking statements, including, but not limited to, projections of financial developments and future performance of materials and products, containing risks and uncertainties. These statements are subject to change based on known and unknown risks and various other factors that could cause the actual results or performance to differ materially from the statements made herein.Furthermore, the information shown herein has been compiled to the best knowledge of the authors. However, Sulzer Ltd. and its affiliated companies, including all directors, officers and employees cannot assume any responsibility for the quality of the information, and therefore any representations or warranties (expressed or implied) as to the accuracy or completeness of the information is excluded.