Vacon – The ACdrives company

David Berbis

Driven by drives

Vacon is a leading supplier of variable-speedAC drives.

Vacon is driven by a passion to design,manufacture and sell only the best ACdrives on the planet — and nothing else

Established in 1993 in Vaasa, Finland

R&D and production units in Finland, China,United States and Italy

Sales offices in 27 countries. Vacon ACdrives are being sold by partners inapproximately 100 countries

In 2010, Vacon had revenues of EUR 338million and globally employed more than1,300 people

Since December 2000, Vacon’s shares(VAC1V) have been listed on NASDAQ OMXHelsinki.

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The Vacon story

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1993Foundingcharter ofthe VaconGroup signedon9 November1993.

1995First productgenerationreleased forsales.Factoryopening inVaasa.The firstsubsidiariesfounded inGermany andSweden.

2000First productof the secondproductgenerationreleased forsales.Vacon listedon the HelsinkiExchanges.

2005Productionstarts inChina.

2007Vacon 10,the firstproduct ofthe thirdgenerationproductrangelaunched.

2008Vaconestablishesown presencein North-America

2010Vacon enters intoSolar PV business

2011The journeycontinues

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Clean technology

For Vacon Cleantech means that duringtheir lifespan Vacon drives save moreenergy than it took to manufacture them.Electric motors consume about 30% ofthe electric energy produced worldwide.Full use of AC drives and energy-efficientmotors in industry and civil engineeringwould provide savings of up to 30% inthe energy consumption of electricmotors.This saving equals 10% of electricity inthe entire world.Renewable energy is an importantsolution in the battle against climatechange.AC drives are a key product in productionof clean water.

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A strongcompany in apromisingbusiness

New opportunities in the AC drives market

Source: Frost & Sullivan 2009 & The Worldwide Market for Low Voltage Motor Drives – 2009 Edition from IMS Research

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Energyefficiency ismainstream

Renewableenergy isemerging

Neweconomiesare driving

world growth

A world ofopportunities

for us

The growth drivers

Vacon is gaining market share

During 2010 Vacon strengthenedits global position. Based onmarket surveys, the companyestimates that it has about fiveper cent of the global market.(4,5 % + 0,5 % brand label sales)

Source: The Worldwide Market for Low VoltageMotor Drives – 2009 Edition from IMS Research &Vacon estimates

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Nr Manufacturer Marketshare %

1. ABB 17.5

2. Siemens 14.0

3. Schneider Toshiba 8.5

4. RockwellAutomation

6.0

Danfoss 6.0

6. Yaskawa 5.0

7. Vacon 4.5

8. Converteam 4.0

Mitsubishi Electric 4.0

10. Fuji 3.5

Total 73.0

Vacon has a strong focus on growth

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Market growth 2010–2014 ~7.5%+(excluding solar)

Our aim is to growdouble the marketgrowth

We havedemonstrated ourability to grow doublethe market growthbetween 2003-2010

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Products presenteverywhere

AC drives in motor control

AC drives provide stepless controlof the rotation speed of electricmotors

– save considerable amount of energyin electric motor applications

– reduce carbon dioxide emissions

– reduce the load on the electricitynetwork

– reduce the mechanical stress onmachinery when starting an electricmotor

– make it easy to connect electricmotors to automation systems

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AC drives in renewable energy

AC drives provide state-of-the-artsolution for power flow control inrenewable energy applications

– generate clean energy fromrenewable sources

– for direct-driven and double fedwind turbine applications

– for medium- and high-power solarenergy applications

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Industrial segments using AC drives

Building automationChemical industryFood and beverageMachine buildingMarine and offshoreMiningMotor industryOil and gas industryPower stationsPulp and paperRenewable energy resourcesRubber and plasticsWater and waste water

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Typical applications

CompressorsConveyorsCranesElevators and escalatorsFansHeaters and dryersMixersPackaging machinesPaper machinesPumpsTest equipmentTextile machinesWind turbinesWinders

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Key customers

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Complete product portfolio

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For distributors and end users

Vacon NXL 0.75-30 kWVacon NXS 0.75-200 kWVacon NXS standalone 200-560 kWVacon 50X (Vacon X4) 0.75-132 kWVacon 500X (Vacon X5) 0.75-132 kWVacon 100 HVAC 0.55-160 kW

For system integrators

Vacon NXP, air-cooled 0.75-3,250 kWVacon NXP. liquid-cooled 5.5-5,500 kWVacon NXC enclosed 110-3,250 kWVacon Common DC bus products up to 5,300 kW

For original equipment manufacturers

Vacon 10 0.25-5.5 kWVacon NXP 0.75-200 kW

We have built a strongcompany with a globalpresence

Our footprint is global and growing

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Americas2005 ... 2010

EMEA2005 ... 2010

Asia Pacific2005 ... 2010

Revenues (MEUR) 30 ... 60 108 ... 227 12 ... 51

Employees 0 ... 86 503 ... 922 74 ... 322

Companies & branch offices 0 ... 4 11 ... 17 2 ... 6

Our factory network is global

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Vaasa, Finland

Suzhou, China

Chambersburg, USA

Naturns, Italy

Global R&D serving our customers globally

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Vaasa and Tampere, Finland

Suzhou, China

Chambersburg, USA

Naturns, Italy

Vacon in Europe, Middle East and Africa

Subsidiaries: 14

Personnel: 925 (69.1%)

Revenues: 227.3 MEUR (67.2 %)

Key customers: Converteam,Konecranes, Rolls-Royce,Schindler, StoraEnso, Veolia,Voith, Wärtsilä

Factories: Finland, Italy

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Vacon in Asia-Pacific

Subsidiaries: 5

Personnel: 328 (24.5%)

Revenues: 50.5 MEUR (14.9 %)

Key customers: Andritz, Hyosung,Hyundai, Samsung

Factories: China, panel building inIndia

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Vacon in Americas

Subsidiaries: 4

Personnel: 86 (6.4%)

Revenues: 60.3 MEUR (17.8 %)

Key customers: Eaton, Honeywell,Rockwell Automation, MotionIndustries

Factories: United States

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We manage multiple channels to the market

The largest focused AC drives companyin the world

One of the widest AC drive productportfolios

Strong local expertise with globalpresence

– Agile and motivated local personnel

– Fast delivery, excellent applicationand service support

– Research and development islocated in all main geographicalareas allowing fast response tocustomized solutions wheneverrequired

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Vacon

Brand label

OEM SystemIntegratorDistributor

End User

VAR

Summary

Vacon aims to grow double the market with solid profitability

– Vacon’s growth is supported by global megatrends; need for energy efficiencyand need for clean energy production

– Proven track record

– Strong global presence in production, R&D and sales

– Geographical and industrial diversification of operations balance the risks

– One of the strongest product portfolios in the business

– Focus gives competitive edge

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100 % Focuson AC drives