Driving towards a Clean, Safe and Sustainable Welding Industry June, 2011 Strength Through Cooperation.

Driving towards a Clean, Safe and

Sustainable Welding Industry

June, 2011

Strength Through Cooperation

Who We Are and What We Do?

ESAB is a world leading company in advanced welding and cutting solutions

ESAB has a product and geographical spread that is unrivalled and occupies a leading position in the majority of the worlds markets. ESAB has sales representation covering five continents. ESAB has over 30 manufacturing locations serving the global business

ESAB has four product Divisions, Consumables, Equipment, Automation and Cutting

Our Vision & Values

Our Vision

“To be the global leader, to be our customers’ preferred partner and the global authority in welding and cutting.”

Values Integrity

Experience

Innovation

Partnership

“Our brand is at the heart of everything that we do.” Michael Foster, CEO ESAB

History & Operation

Over a Hundred Years of Experience

From the company’s foundation in Sweden in 1904 and the development of the world’s first welding electrode, ESAB has grown into a global leader with sales exceeding $2 billion annually.

ESAB’s Parent Company

Charter International plc, headquartered in Ireland, owns (through a number of intermediate companies) two international engineering businesses, one focused on welding, cutting and automation (‘ESAB’), and the other on air and gas handling (‘Howden’).

Market Profile – Welding & Cutting2010: About $13 Billion Globally

By end user segment

EnergyOil, gas & processes 9.5%Power 4.2%Petrochemicals 5.8%Pipelines & pipe mills 6.0%Total energy 25.5%

Infrastructure construction

18.0%

Shipbuilding9.0%

Automotive/ mobile

machinery14.0%

All other (including

repairs and maintenance)

33.5%

Notes: 1 The global welding and cutting market in which ESAB operates excludes welding robots and automation products.

Global Presence

Manufacturing Footprint Worldwide

Welding consumables factoWelding consumables factoriesries

Cutting Cutting systems factoriessystems factories

Cutting and welding equipment factoryCutting and welding equipment factory

Welding equipment factoriesWelding equipment factories

Welding equipment & consumables factoryWelding equipment & consumables factory

Changwon

Perstorp

MórVamberkKatowice

St PetersburgLaxå

Opole

HanoverAshtabula

Traverse City

Florence

Monterrey

Belo Horizonte

Chascomus

Shanghai (Malu)

Khardah, Calcutta

Ambattur, Chennai

Nagpur

Jakarta

Karben

Zhangjiagang

Ithiman

Irungattukotai

St Luis

Taratala

Weihai

Pompeya

Wuxi (Romar)

Singapore (Romar)

Terni

15 Process Centers and 5 Consumable R&D Centers

Sweden

Brazil

Argentina

Spain

UAE

Germany

Russia

China

Singapore

France

Existing Process Centre

USA

PolandCzech Rebulic

UK

India

Hanover

Belo Horizonte

GothenburgZhang Jiagang

Chennai

Global Presence for Local Customers

EHS & Sustainability

ESAB Strategic Goal

Leader in EHS & Quality

Customer focus, globally

Effective people in a performance culture

Establish global market leadership

Financial stability

Sustainable Vision

Our sustainability vision for ESAB is a company that:

has an impact on the environment that does not contribute to biosphere deterioration

manages human resources in a way that makes our intellectual capital continuously grow

contributes to local and global economy development

makes flawless products, needed by society and safe to use

delivers financial results that satisfies shareholders over business cycles

What is Lean??

The continuous removal of all types of waste from all parts of the business.

If you remove waste, you focus on adding value

The ESAB Way of Lean

Long-term Lean Strategy

Lean ManufacturingLean Enterprise

Business Excellence

We keep the promises we make and improve what we do the ESAB Way!

What is the ESAB Way?

The ESAB Way is Strength through Cooperation supported by the established principles that are the decision making behaviors and actions required to support the ESAB Vision, Brand, and Values.

The “ESAB Way” is the guideline that leads us to the accomplishment of our objectives.

There are 12 principles of the ESAB Way, supporting our Brand and giving us guidance in our daily operation.

The ESAB Way Principles – Supporting the ESAB Brand

We strive through our daily activity to continuously improve the safety of our working environment.

We understand our customer needs and make realistic commitments to meet them. Corporate planning through the Policy Deployment Process will set common goals

and communicate our business aims. We manage with a long term view whilst meeting our short term commitments. We will invest in, and build the capability of our people and organization to deliver our

vision. We want our people to know what is expected of them. Their performance is reviewed

and development is encouraged. Our processes are aligned against the principles of pull and smoothing, aligned to

customer based takt time. We build quality into our processes to avoid creating or passing on defects. We use standardization as our foundation for continuous improvements supported by

visual management to expose problems and highlight opportunities. We “Go and See” to learn and to understand our opportunities for improvements. We share best practice and communicate our ideas to eliminate waste across the

value chain. All our decisions are data driven and guided by our principles.

With acknowledgement to Unipart for help developing the ‘how’ of the ESAB way

Customer Focus – At the Core of Our Brand

Customer Focus – We must understand the needs of our customer, strive to find innovative solutions for them and be recognized as industry leaders.

Product Innovation – Our product innovation process must be market led and help build our authority brand image.

Operational excellence – We must be flexible and reliable, delivering consistent quality at the right cost – striving for best in class cost in the industry.

Technology is Productivity

Our History

1900 1920 1960 19801940 2000

2000sRapid growth and expansion. Started journey from multi-national to global company

2000sSignificant growth of ESAB India and South-America

2006/08ESAB China: Zhangjiagang and Weihai factories open

Our Innovations

1900 1920 1960 19801940 2000

2007Hybrid Laser Arc Welding

2010New advanced consumables &

equipment innovations

2006Telbo

ESAB offers a comprehensive range of Personal Protection Equipment, covering everything from head to foot, for both welding & cutting and general engineering applications. All ESAB products conform to all relevant EU legislations and standards.

Helmets, masks and screens

Filter & spatter lenses

Respiratory equipment

Spectacles, goggles & visors

Welding curtains & blankets

Welding clothing & overalls

Welding gloves

Safety footwear

……

Social ResponsibilityHuman Care

Social Responsibility – The EnvironmentCopper-free Solid Wire with ASCTM Features

MAG Welding at New Performance Levels

Consistent welding performance

Stable arc with low feeding force

Excellent arc ignition

High current applicability

Extremely low overall spatter

Trouble-free feedability, even at high wire feed speeds and lengthy feed distances

Low fume emission

Social Responsibility Packaging Solutions

ESAB packaging solutions for consumables combine production efficiency with environmental responsibility.

The Marathon Pac™ wire delivery system can offer truly non-stop production in robot applications, meaning zero downtime for spool changes and zero downtime for drum changes when in the Endless set-up.

VacPac™ No re-baking - no quivers - no holding ovens VacPac™ vacuum packaging eliminates the costly re-baking and handling routines normally associated with the storage of electrodes, by preventing airborne moisture absorption. Simple and convenient to use.

Strength Through Cooperation

Q & A