Introduction to Danfoss

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Danfoss engineers technologies that enable the world of tomorrow to do more with less. We meet the growing need for infrastructure, food supply, energy efficiency and climate-friendly solutions

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Trend

World population is moving into cities, creating a huge demand for infrastructure

Danfoss

We help build the infrastructure in a sustainable and efficient way

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Infrastructure

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Trend

World population is growing and there is a constant need

for more and better food

Danfoss

We help meet this need by improving farming productivity and keeping food cold and fresh

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Food

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Trend

Global energy demand is rising as population grows and

standards of living increase

Danfoss

We help get more out of less with our energy-efficient technologies

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Energy

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Trend

Global emissions are rising, however, development can

be turned around and air pollution limited

Danfoss

We help lower emissions and increase human well being through our innovative technologies

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Climate

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Danfoss facts Employees 24,000

Worldwide sales more than 100 countries

Factories 63 in 19 countries

Top three markets USA, Germany and China

Ownership Privately held

Headquarters Nordborg, Denmark

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Key financials (2014)

Net sales 34.4bn DKK 4.6bn EUR

EBIT (excluding other operating income and expenses) 4.4bn DKK 584m EUR

Free cash flow (before M&A) 3.4bn DKK 455m EUR

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Our global markets Share of turnover per region 2014

Latin America 4%

Africa/Middle East 2%

Asia-Pacific 19%

North America 24% Other Europe

11%

EU 40%

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Our organization

Executive Committee

Kim Fausing Executive Vice President & COO

Niels B. Christiansen President & CEO

Jesper V. Christensen Executive Vice President & CFO

Global Services

Corporate Functions

Danfoss Power Solutions

Danfoss Cooling

Danfoss Heating

Eric Alström Segment President

Hydrostatics

Work Function

Controls

Jürgen Fischer Segment President

Refrigeration &

Air Conditioning Controls

Commercial Compressors

Industry Business

Heat Exchangers

Vesa Laisi Segment President

Power Electronics

Vacon

Lars Tveen Segment President

Residential Heating

District Energy

Commercial Controls

Danfoss Drives

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Strategy journey – Core & Clear

2014 Results

2010 Journey starts

2015 - Journey continues

• Invest in core business areas and divest non-core activities

• Optimize business and reduce complexity

• Sharpen value for customers through stronger focus on quality, reliability and innovation

• Motivate employees to support changes and perform their best

• Record-high sales and profit

• 10% improvement in productivity per year

• Best-in-class quality and on-time deliveries

• Leading positions strengthened

• Employee commitment risen to 78 in 2013 from 73 back in 2009 (scale: 1-100)

• Continue improving business

• Expand Danfoss’ position and accelerate profitable growth

• Invest in innovation, branding and market growth pockets

• Acquire new technologies and activities

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Innovation that makes a difference

• Heavy investment in innovation – 3.9% of net sales in 2014 • Customer involvement from start to finish • 50 product lines that meet needs and make a difference • On average, we are granted a new patent every day

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Committed employees

• 24,000 employees dedicated to engineering solutions that make a difference to people and businesses worldwide

• Highest level of employee commitment ever (2013: 78 on 1-100 scale)

Our behavior We build our business on trust and integrity

We are innovative in our ambition to exceed expectations

We are global and embrace diversity

We treasure sustainable results

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North America incl. Mexico

4,290

Latin America 420

Denmark 5,300

Europe excl. DK 8,660

Africa – Middle East 60

Asia – Pacific 5,390

Employees worldwide

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Our approach to sustainability

• Follow the UN Global Compact • Guidelines, training and programs that govern our behavior • Code of Conduct for suppliers and regular audits to verify compliance • Climate strategy: by 2030, Danfoss will be using half as much energy as in

2007 and this energy will emit half as much CO2

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Our history

• Founded in 1933 by Mads Clausen in Nordborg, Denmark • Grown from a solo enterprise into a world-leader • Made possible by clear focus on innovative engineering and early

entry on emerging markets

Cooling

Danfoss invented one of the first radiator thermostats in the world (1943)

Entered hydraulics business with orbit motor for agricultural and construction machines (1964)

Later the hermetic compressor for refrigerators and freezers followed (1952)

First company to mass-produce variable speed drives for controlling motors (1968)

Today, we are one of the world’s leading producers of these and many other products

First product was an expansion valve for refrigeration systems (1933)

Heating Power Solutions Drives

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