Introduction to Danfoss narius_ne ST im... · Because Turbocor®compressors are frictionless, with no wearing parts, the compressors maintain high performance over time, helping end-users

Introduction to Danfoss

2 | Group presentation, May 2018

26,645Employees

WORLDWIDE SALESin more than 100 countries

72 FACTORIESin more than 20 countries

Key facts

USA, CHINAAND GERMANYTop three markets

PRIVATELY HELDOwnership

NORDBORG,DENMARKHeadquarters


2017 at a glance

Results Regions

37%Share of

Group sales

9%Share of

Group sales

22%Share of

Group sales

Western Europe Eastern Europe North America

Asia-Pacific Latin America Africa-Middle East

Sales EURbn

5.8

Growth in local currency

12%

EBIT EURm

645

Net profit EURm

445

EBIT margin

11.1%

24%Share of

Group sales

5%Share of

Group sales

3%Share of

Group sales


#2 Market position

Business segments

32%of Group net sales

• 6,815 employees• 22 factories in 11 countries• 1.9bn EUR

#1 Market position


#2 Market position



#1 Market position




DANFOSS POWER SOLUTIONS

DANFOSS COOLING DANFOSS DRIVES DANFOSS HEATING


Danfoss Group Executive Team

President & CEO

Kim Fausing

Executive Vice President & CFO

Jesper V. Christensen

Segment President, Danfoss Power Solutions

Eric Alström

Segment President, Danfoss Cooling

Jürgen Fischer

Segment President, Danfoss Drives

Vesa Laisi

Segment President, Danfoss Heating

Lars Tveen

Regions

North America Central Europe North Europe China South Europe Asia Pacific

Latin America Russia Eastern Europe Turkey, Middle East & Africa India Global Accounts

Organization

Segments

GlobalServices

GroupFunctions

Danfoss Power Solutions Danfoss Cooling Danfoss Drives Danfoss Heating


Committed employees

• More than 26,000 employees dedicated to engineering solutions that make a difference to people and businesses worldwide

• High employee engagement (2017: 79 on 1-100 scale)


Employees worldwide

North America

3,957Western Europe

10,360Eastern Europe

4,769

Latin America

1,367Africa-Middle

East

281

Asia-Pacific

5,911


Innovation that makes a difference

Massive investments in innovation – 4.0% of net sales in 2017

Customer involvement from

start to finish

50 product lines that meet needs

and make a difference

On average, Danfoss is granted

a new patent every day

The right technology can keep the world cool, hot, and powered up with the least amount of energy



Danfoss awarded for its Turbocor® compressors

In 2017, Danfoss was awarded for its innovative Turbocor®

technology: Bronze Winner in the Edison Awards and an Innovation Award at the China Refrigeration Expo. Danfoss is the pioneer and leader of oil-free, magnetic bearing, variable speed centrifugal compressors for high-efficiency air-conditioning chillers.

Because Turbocor® compressors are frictionless, with no wearing parts, the compressors maintain high performance over time, helping end-users to lower maintenance costs and achieve significant energy-savings compared with traditional systems.



Smart heating with Danfoss LinkTM

Energy efficiency saves money, reduces air pollution, strengthens competitiveness and delivers short payback time on investments. Well-proven Danfoss technologies help increase energy efficiency.

For example, Danfoss LinkTM is the easiest way to smart heating, saves up to 30% on home heating costs, and enables people to control home heating from anywhere –directly on a smartphone with the Danfoss LinkTM app. Danfoss LinkTM is the only system that effortlessly helps people control both electronic radiator thermostats and floor heating.



Spearheading autonomous off-highway vehicles

In the future, the way of transporting goods and people will eventually be without involvement from an operator. Autonomous vehicles are also expected to take over most off-road applications, which is why Danfoss has been on the autonomous driving technology path for some time.

In 2017, DAVIS – Danfoss Autonomous Vehicle Integration System – was introduced at the trade fair for agricultural machinery, Agritechnica, in Germany. The early prototype introduction of DAVIS provided valuable feedback and insights from customers about their needs for autonomous driving systems of the future, and how Danfoss can take the lead when developing the autonomous driving technologies of tomorrow.


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 hydraulicsbusiness with orbit motor for agricultural and construction machines(1964)

Later the hermeticcompressor 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 wasan expansion valvefor refrigerationsystems (1933)

Heating Power Solutions Drives


Introduction to Danfoss Heating


Danfoss Heating at a glance

26FACTORIES IN 12 COUNTRIES

5,339EMPLOYEES WORLDWIDE

NUMBER OF COUNTRIES INWHICH OUR PRODUCTS ARE SOLD

100

TOP 5 MARKETS

NORTH AMERICA

LATIN AMERICA

EU

AFRICA/MIDDLE EAST

OTHER EUROPE

ASIA-PACIFIC

Russia

Danfoss Growth Themes Core & Clear Strategy

Denmark

UKGermany

China

Commercial (Non-residential)

Residential 1-2 family houses and multi-family houses

District energy networks

Danfoss Heating application areas


Domestic thermostats and District heating controls form Danfoss heating division

Trata acquisitionand concentration of controls production (Slovenia)

Heating split into twodivisions: District Energy (DEN) and Heating Solutions (HS

DEN and HS combine forces, forming Danfoss Heating Segment

Thermia acquisition:heat pumps(Sweden)

Ridan acquisition – heat exchangers (Russia)

Expansion of Anshan district heating production facility in China

DEVI electricalheating acquisition(Denmark)

Gemina Termixacquisition – light duty stations (Denmark)

Rapid growth via M&A and Emerging Markets

Two divisions, Core & Clear

Early years, product line focus New chapter

LPM Group acquisition: HEX & large stations (Finland)

Acquisition of Anshan facility in China via IWK

1978 1995 2009 2015200720052001 2013200420032000 2016 2017

Redan acquisition –light duty stations (Denmark)

Acquisition of Sondex July 2016

Stake acquired in Leanheat September 2016

Vertical Approach to Markets and

Customers Launched January

2017

Danfoss Heating Segment Our inheritance and key milestones

Danfoss Heating Divisionestablished

2018


DHS Strategy

Leadership in Advanced Components

Vertical Approach

▪ Foundation for Heating’s business

▪ Scale and innovation

▪ Electronics & connected products

▪ Global strategies

▪ Increase customer focus and relevance

▪ Stronger value propositions

▪ + analytics and services

▪ Local strategies

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https://en.wikipedia.org/wiki/File:Flag_of_Russia.svg

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http://hbc.pcm.danfoss.net/Content/71a66c38-fbe2-40d0-9db4-bd210a79c57e.html

http://products.danfoss.com/productrange/heatingsolutions/balancing-control-valves/pressure-independent-balancing-control-valves/

http://products.danfoss.com/productrange/heatingsolutions/balancing-control-valves/control-valves/

http://products.danfoss.com/productrange/heatingsolutions/radiator-thermostats/radiator-sensors/

http://products.danfoss.com/productrange/heatingsolutions/radiator-thermostats/lockshield-valves/


Our Verticals

• Radiator thermostats, floor heating, heat pumps, and smart heating solutions, balancing valves (hydronic balancing of the heating system), flat stations, domestic hot water systems, energy meters etc.

• HVAC digital and manual actuators, hydronic balancing valves, control valves, floor heating, hydronic-or electrical floor heating, heat exchangers, radiator thermostats, heat pumps, pressure independent balancing and control valves, and electronic controllers.

RESIDENTIAL

• Substations, light and heavy duty stations, controls, flat stations, heat exchangers, and domestic hot water systems.

• All components that belong to a substation: control and balancing valves, heat exchangers, electronic controllers and monitoring systems.

MULTI-FAMILY

SINGLE FAMILY

NON-RESIDENTIAL

DISTRICT ENERGY

NON-RESIDENTIAL DISTRICT ENERGY

• Radiator thermostats, floor heating, heat pumps, and smart heating solutions, balancing valves (hydronic balancing of the heating system), flat stations, domestic hot water systems, energy meters etc.


District Energy remains a key infrastructure for energy efficiency District Energy


District energy is an infrastructure for distributing heating and cooling to buildings in cities. Danfoss has since 1970’s been providing solutions such as substations and key components like heat exchangers that typically save 20-30% energy in district energy networks and end-consumption

District Energy

Substations

Plate Heat Exchangers

Flat stations & DHW systems

Electronic controllers& Automatic controls


Building a leading position in heat transfer

▪ Acquisition of Sondex in September 2016

▪ One strong combined plate heat exchanger business

▪ Unmatched value proposition within heat transfer solutions

▪ 1,200 employees

21 | Group presentation, May 2018 21 | Heating Segment

Gasketed heat exchangers

22 | Group presentation, May 2018 22 | Heating Segment

Brazed heat exchangers

* DW = Double Wall (Sonder Safe)

XB Micro Plate Pattern

SL Fishbone Plate Pattern


Significant energy saving potential in existing buildings in Europe – with Danfoss products

28%40%

Get The Basics Right Scenario Energy savings using TRV, automatic hydronic balancing

High-Performance Scenario Energy savings. As Get The Basics + More advanced building automation and control measures

21% 33%

Multi-Family Houses Single-Family Houses

Non-Residential Buildings

20% 41%

Source: Ecofys, 2017: ‘Optimising the energy use of technical building systems – unleashing the power of the EPBD’s Article 8’


District Energy remains a key infrastructure for energy efficiency District Energy


https://www.youtube.com/watch?v=D8jQpHREsF8

Documents

Introduction to Danfoss narius_ne ST im... · Because Turbocor®compressors are frictionless, with no wearing parts, the compressors maintain high performance over time, helping end-users