Schouw & Co first half

Transcription

1 Schouw & Co first half Investor presentation AUGUST/SEPTEMBER 2015 CEO JENS BJERG SØRENSEN IR KASPER OKKELS

2 Interim Report 2015H H1 at a glance: Continued progress revenue 5.9bn Growth 16% // 2014H1: 5.1bn Impact from volatile raw material prices return on invested capital 17.0% ROIC incl. goodwill 14.1% Progress in all companies except BioMar NIBD/EBITDA 0.1x Small increase in NIBD y/y Very strong and solid financial position EBIT 303m 26% growth from 2014H1 Positive effect from forex and raw materials cash flow from operations 224m 2014H1: 243m Unsatisfactory increase in NWC in BioMar profit from associates and JVs 47m 2014H1: -7m No PPA effect in Kramp, Xergi 8% EBIT

3 Key figures Interim Report 2015H Revenue and income 2015H1 2014H1 2014FY Revenue 5,888 5,064 11,784 EBITDA ,070 - margin 8.4% 8.2% 9.1% EBIT margin 5.1% 4.7% 6.0% Profit after tax in associates and JVs Cash flows 2015H1 2014H1 2014FY Cash flows from operating activities Cash flows from investing activities Of which investment in PPE Cash flows from financing activities Invested capital and financing 2015H1 2014H1 2014FY Working capital 2,013 1,541 1,775 Net interest bearing debt (NIBD) Total equity 6,366 5,740 6,074 ROIC excl. goodwill 17.0% 18.1% 16.9% ROIC incl. goodwill 14.1% 15.0% 14.0% NIBD/EBITDA Schouw & Co. share price C20 CAP indexed to Schouw & Co. MidCap indexed to Schouw & Co. 30% increase in share price in % increase in share price in 15H1 200 Jan Mar May Jul Sep Nov Jan Mar May Jul

4 BioMar Volume flat compared to 2014H1 Same total y/y volume in both Q1 and Q2 21% revenue increase due to higher raw material prices Increase in Norwegian volumes (final deliveries, contract base) Decrease in Chilean volumes (declining market, smaller fish, early harvest) Continental Europe on par despite challenges in Greece Interim Report 2015H Revenue LTM Chile remains the key challenge Entire farming industry in financial difficulties Debtor management increasingly important Lower market share but no loss of customers Chile main reason to surge in NWC (forex, payment terms, inventory, etc.) Market volume expected to decline in next quarters Maintaining 2015 outlook Contract base in Norway as expected (volumes and margins) Debtor risk and low volumes in Americas but positive effect from USD exchange rate Greece seems towards a sustainable solution No effect from Chinese JV with Tongwei (but good progress) Outlook raised after Q1 following a strong first quarter Guidance Revenue ,4517m org ~8.5bn after Q ~9.0bn EBIT m org m after Q m EBIT LTM

5 BioMar 2015-H1 financials Interim Report 2015H Q2 YTD D D LTM 2014 Revenue 2,230 1,837 21% 4,139 3,430 21% 9,161 8,451 EBITDA % % EBITDA% 5.1% 6.2% -17% 4.9% 5.3% -9% 6.5% 6.8% EBIT % % EBIT% 3.5% 4.3% -18% 3.1% 3.3% -6% 4.9% 5.1% Profit before tax % % Cash Flow from operations NA NA Equity 1,929 1,665 16% 1,902 - in % of total assets 36.9% 36.4% 1% 39.3% Inv. Capital (ex goodwill) 2,219 1,784 24% 1,931 - ROIC 21.8% 24.4% -10% 22.9% Net Working Capital 1, % in % of LTM revenue 13.8% 9.2% 49% 11.6% NIBD % times LTM EBIDTA 1.2x 0.9x 26% 0.7x

6 Fibertex Personal Care Small decline in revenue and volume Volume growth in Denmark but decline in Malaysia Lower raw material prices affects revenue negatively Positive effect from consolidation of Innowo Print Strong cash flow from operations of DKK 220m (2014H1: 100m) ROIC of 15.8% following significant lowering of NWC Interim Report 2015H Revenue LTM Volatile raw material prices Pass-through mechanisms with some months lag About DKK +30m EBIT effect in Q1, about DKK -25m in Q2, minor effect expected in Q3 PP prices seems to have stabilized Innovation and value-add Starting up print production in Malaysia Ongoing innovation in softer, lighter and loftier products Growing with Japanese premium diaper manufactures Narrowing EBIT guidance Raising lower end of interval High capacity utilisation required Industry remains dynamic Guidance Revenue ,787m 2015 ~1.7bn EBIT m org m new m EBIT LTM

7 Interim Report 2015H Fibertex Personal Care 2015-H1 financials Q2 YTD D D LTM 2014 Revenue % % 1,772 1,787 EBITDA % % EBITDA% 17.3% 15.8% 10% 20.3% 16.1% 26% 19.2% 17.2% EBIT % % EBIT% 8.5% 8.1% 4% 11.8% 8.6% 37% 11.1% 9.6% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 41.6% 36.0% 16% 38.8% Inv. Capital (ex goodwill) 1,225 1,195 3% 1,336 - ROIC 15.8% 12.9% 23% 14.4% Net Working Capital % in % of LTM revenue 12.7% 16.8% -24% 16.4% NIBD % times LTM EBIDTA 1.6x 2.3x -29% 2.2x

8 Fibertex Nonwovens Another strong quarter Growth in auto and high-value segments Substantial progress in EBIT and gross margin Effect from acquisitions, forex, scale and transformed business model One-off gain of DKK 3m following acquisition of shares in South Africa Interim Report 2015H Revenue LTM Consolidating strong international position State-of-the-art equipment at all sites US platform contributes positively Significant long-term potential in South Africa Promising product development pipeline Proven strong ability to drive industry consolidation 2015 guidance raised for the 2 nd time Effect from strong H1 (H2 always low season) Still challenges from upgrades and installation of new line Consolidation of South Africa (negative EBIT in 2015) Uncertainty about raw material prices Guidance Revenue ,048m 2015 ~1.2bn EBIT m org m after Q m new m EBIT LTM

9 Interim Report 2015H Fibertex Nonwovens 2015-H1 financials Q2 YTD D D LTM 2014 Revenue % % 1,143 1,048 EBITDA % % EBITDA% 13.4% 11.8% 14% 14.1% 12.0% 18% 13.4% 12.2% EBIT % % EBIT% 7.6% 5.9% 29% 8.2% 6.1% 34% 7.1% 5.9% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 33.0% 33.8% -2% 32.7% Inv. Capital (ex goodwill) 1, % ROIC 9.4% 7.1% 33% 8.4% Net Working Capital % in % of LTM revenue 30.5% 28.5% 7% 30.4% NIBD % times LTM EBIDTA 3.9x 3.6x 8% 4.1x

10 Hydra-Grene Strong H1 and high activity in wind ~45% of revenue comes from wind segment Very strong wind sales to USA Significant effect from good utilisation of capacity Danish OEM market on par with 2014H1 Offshore oil/gas remains small compared to OEM and Wind Interim Report 2015H Revenue LTM Business development Increasingly complex products and system solutions Investments required to build strong offshore segment New ERP system implemented and running Looking to strengthen growth platform Better outlook for 2015 Better than expected/awarded sales to wind Increased competition in all segments Plunging sales to agricultural sector Guidance Revenue m org ~500m new 2015 ~550m EBIT m org m new m EBIT LTM

11 Hydra-Grene 2015-H1 financials Interim Report 2015H Q2 YTD D D LTM 2014 Revenue % % EBITDA % % EBITDA% 15.2% 14.9% 2% 14.2% 14.5% -2% 13.7% 13.8% EBIT % % EBIT% 12.6% 11.9% 6% 11.8% 11.3% 5% 10.9% 10.6% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 44.3% 39.0% 14% 48.0% Inv. Capital (ex goodwill) % ROIC 23.8% 22.3% 7% 22.6% Net Working Capital % in % of LTM revenue 32.2% 37.1% -13% 33.1% NIBD % 96 - times LTM EBIDTA 1.3x 1.9x -34% 1.2x

12 Kramp Interim Report 2015H Strong development in H1 Revenue up 4.6% and EBIT 17% driven by the big markets in PL, FR, NL EBIT margin of 11.7% in Q2 Robust business model: high share of wearables and repair parts Agro customers facing difficulties in selected markets Harvesting the merger synergies Integration of Grene and Kramp progresses as planned Expected level of synergies confirmed so far Investments in IT required as expected Maintaining 2015 outlook Full effect in Schouw & Co. P/L as PPA depreciations are eliminated Disclosed 2017 revenue target of EUR 1bn requires M&A but 13% EBITDA target remains intact New warehouse in Poland Guidance Revenue ,905m 2015 ~5.25bn EBIT m m

13 Kramp 2015-H1 financials Interim Report 2015H Q2 YTD D D LTM 2014 Revenue 1,439 1,360 6% 2,693 2,576 5% 5,023 4,905 EBITDA % % EBITDA% 14.0% 13.1% 6% 12.8% 11.5% 11% 11.5% 10.8% EBIT % % EBIT% 11.7% 11.0% 6% 10.4% 9.3% 12% 8.9% 8.3% Profit before tax % % Equity 1,267 1,214 4% 1,063 - in % of total assets 39.2% 40.6% -3% 38.1% Inv. Capital (ex goodwill) 2,578 2,479 4% 2,434 - ROIC 17.6% 17.5% 0% 16.6% Net Working Capital 1,544 1,511 2% 1,434 - in % of LTM revenue 30.7% 31.6% -3% 29.2% NIBD 1,311 1,265 4% 1,371 - times LTM EBIDTA 2.3x 2.4x -7% 2.6x

14 Other activities Xergi Significant progress in 2015 Revenue up to DKK 235m (2014H1: 86m) EBIT margin about 8% (2014H1: loss) Maintaining high activity level also in 2015 Effect from many years of investing in technology and markets as well as strong Danish market Unchanged good prospects for biogas Focus on international markets Interim Report 2015H Incuba Invest Small profit (as in 2014H1) Properties HQ at Chr. Filtenborgs Plads in Aarhus Two factories in Frederikshavn (Martin Prof.) Small property in Aarhus rented to former Grene Industri service

15 2015 guidance REVENUE DKK million 2015 F after Q F original 2014 actual BioMar c. 9,000 c. 8,500 8,451 Fibertex Personal Care c. 1,700 c. 1,700 1,787 Fibertex Nonwovens c. 1,200 c. 1,200 1,048 Hydra-Grene c. 550 above Other/eliminations Total revenue c. 12.5bn c. 12bn 11,784 Kramp (100%) c. 5,250 c. 5,250 4,905 EBIT DKK million Interim Report 2015H F after Q F original 2014 actual BioMar Fibertex Personal Care Fibertex Nonwovens Hydra-Grene Other c. -20 c Total EBIT Associates etc Financial items, net c. -10 c Profit before tax Kramp EBIT (100%) Upwards adjusted after Q1 Upwards adjusted after Q2

16 Strategic goals Interim Report 2015H Growth Profit Return Leverage Payout Portfolio Substantial growth every year Benchmark level profitability ROIC > 15%, but dependent on level of risk Comfort zone for NIBD is 1-2 times EBITDA Constant/increasing dividends and share buybacks A handful of big and strong businesses

17 Appendix Selected introductory presentation material

18 M&A activity Interim Report 2015H Martin EV: 500m 60+40% Fibertex EV: 660m 100% Merger Xergi BioMar EV: 1.800m 68%+32% Provimi EV: 675m 100% (BioMar) Tharreau EV: 300m 100% (FIN) NWS EV: 150m 100% (FIN) Merger Grene/Kramp Innowo EV: 100m 85% (FPC) Fibertex South Africa +48% (FIN) Deal flow is not a target Hydropower Grene Industriservice Acquisitions and mergers part of consolidation and to create bigger and stronger businesses Schulstad EV: 2.700m 62% Merger NEG/Vestas Elopak EV: 1.200m 50% Sjøtroll EV: 1.200m 51% Martin EV: 900m 100% Divestments due to no longer being best owner Bigger and stronger portfolio Bigger and stronger businesses in the portfolio Consolidating the conglomerate

19 Interim Report 2015H The Schouw agenda Develop big and strong businesses Leading companies do perform better Expand in growth markets A global outlook is key Constantly increase capacity Balancing profit and growth Maintain focus on innovation Secure #1 positions Think long-term Ensuring high return on capital Attract talent Results are created through people

20 Group level Business level Conglomerate value creation Interim Report 2015H FOCUSED OPERATIONS Delivering solid performance and growth Tight/optimal capital allocation Ongoing efficiency Ensure innovation minimum as benchmark TRANSFORMATION Structural and strategic initiatives Development of products and services Geographical expansion Bolt-on acquisitions ambitious plans STRUCTURE AND DEVELOP Attractive acquisitions Long-term planning Add Schouw DNA Secure leading positions risk and span of control OPTIMIZE OWNERSHIP Necessary exits with good timing Participate in value-added consolidations Consider mergers, JVs, minority stakes Value-creating ownership structures best owner philosophy

21 Interim Report 2015H Acquisition of BioMar 2007 Acquisition of Provimi 2011 Expansion in Myre 2012 JV in Costa Rica 2014 JV in Turkey Growth and acquisitions 10 years of strong growth and profitable development 2002 Acquisition of Fibertex 2003 Green-field in Malaysia 2004 Acquisition in Czech 2011 Acquisition in France EUR +300m investments in cap FPC and FIN demerger 14 years of transformation and expansion 1988 Acquisition of Grene ~1990 Internationalisation ~1995 A strong focus on industry Grene/HydraHydra in ChinaGrene/Kramp demerger and India combination 27 years of active and developing ownership

22 Our mantra Interim Report 2015H Businesses owned by Schouw & Co. should secure and maintain a leading position develop after our active ownership model have a long-term growth strategy take part in value-creating consolidations generate ROIC above 15% have visible values and a strong culture be prepared for change

23 Interim Report 2015H Investment guidelines (for platform investment) We have a long-term investment strategy and is open to attractive acquisitions and appropriate divestments of companies We have no predetermined exit strategy for the investments we make We want to keep and develop its businesses as long as we are the best owner We have clear targets for return on capital and profit for all investments Area Industry Size Geography Ownership Leading position Management Need for a new owner Possible to be active Criteria B2B, preference for process industry and logistics/distribution Revenue now or short-term realizable of more than DKK 1bn Danish headquartered (but international focus) Preferable wholly owned, but open to valuecreating structures Within top 5 in its niche/segment Strong and ambitious. No operational resources at Schouw & Co. HQ We need to bring something to the business Plans for development and transformation

24 Ownership Interim Report 2015H Two main long-term shareholders Increase in share price and trading volume Danish (27%) and foreign (18%) institutional and retail investors 45% Treasury shares 8% Givesco+EE 32% Danish active family-owned business fund with activities within bakery, industrial equipment, food/chocolate and hardware. Hornsylds Legat 15% Sole purpose is owning shares in Schouw & Co. Administrated by the Board of Directors in Schouw & Co % % Strong historical yield % Dividends paid (DKK million) Share buy-back (DKK million) 50 0 Jan Mar May Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb May Jul Sep Nov Jan Trading/day (3M average) Share price

25 Strategic highlights in the businesses Interim Report 2015H BioMar Continued growth in existing markets Improving profitability in Norway Limiting risk throughout the value chain Salmon is below 5% of global farmed seafood M&A to fuel volume ambition in new markets Constantly above 5% EBIT margin Fibertex Personal Care Continued growth in Asian demand for nonwovens Sustaining superior quality and customer relations Focus on improving profitability and return Levering on full ownership in printing business 15% ROIC and EBIT > 12% Fibertex Nonwovens Integration and consolidation of investments Continuing transition from volume to value-add Growth both in and outside Europe 8-9% EBIT target remains realistic Hydra-Grene Adapting to volatility in global wind supply Growing in new segments, e.g. offshore Maintaining ROIC > 15% Kramp Harvesting synergies and growing the integrated biz. Investing in new markets (West+East Europe) Revenue ambition of EUR 1bn and 13% EBITDA

26 Capital structure It is not a target to remain debt-free Investments in our businesses (capex and bolt-on acquisitions) will likely be the main use of liquidity Comfort zone for NIBD is 1-2 times EBITDA In 2015 dividends increased by 33% to DKK 8 DKK 8 corresponds to 2.8% of market cap end of 2014 or 48% of 2014 profit for the year Dividends have been raised annually in four successive years Share buybacks is periodically on the agenda Gross share buyback in 2014 was DKK 180m Total buyback in amounts to DKK 410m Interim Report 2015H Dividend policy Schouw & Co. aims to pay stable or growing dividends, always with due consideration for the company's earnings and any potential major investments or acquisitions.

27 BioMar

28 Fish farming/feed geography Interim Report 2015H NORTH SEA AMERICAS CONTINENTAL EUROPE ASIA Atlantic salmon, trout Market size ~2.0m t Market growth* 5-6% Market share 20-25% Atlantic salmon, coho, trout, tilapia Market size ~1.4m t Market growth* 5-6% Market share 25-30% Sea bass, sea bream, portion trout, eel, a.o. Market size ~0.7m t Market growth 0-1% Market share 25-30% Shrimp, tilapia, catfish, pangasius, etc. Market size +10m t Market growth 4-5% Market share revenue DKK 4.1bn 2014 revenue DKK 2.6bn 2014 revenue DKK 1.8bn 2014 revenue N/A *Long-term market growth over the salmon cycle ; flat/negative volume development in 2015 Karmøy, Norway Grangemouth, UK Pargua, Chile Guanacaste, Costa Rica Volos, Greece Nersac, France BioMar has in 2015 established a Joint Venture with Chinese Tongwei. First step is to build a ton factory in China. Myre, Norway Castro, Chile Pargua, Chile Brande, Denmark Dueñas, Spain

29 BioMar s strategy ELEMENTS DIRECTION AND PRIORITIES Interim Report 2015H Grow organically in line with existing markets Organisationally and geographically Establish units (incl. production) in 2-4 new geographies before 2017, to the extent possible focusing on a limited number of species (< 5) Strengthen global capabilities Focus on current daily business Actively utilise competences across BioMar units New geographies and species More well defined structures and systems

30 Ambitions from 2012 strategy plan Interim Report 2015H Volume (1000 tons) Sales of approx. 1.7 m tons in 2017 Approx. half through organic growth The other half in new markets (acquisitions/jv s/green fields) 5-6% EBIT margin ROIC > 15% BioMar group strategy: Going for Global Growth Going for Profitable Global Growth Beyond the limits

31 Mega-trend driven demand Interim Report 2015H GLOBAL POPULATION GROWTH Population, billion GROWTH IN AQUACULTURE 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 wild catch aquaculture Source: FAO, 2013, farmed and wild salmonids Asia Africa AQUACULTURE BENEFITS Salmon is healthy Effective growth Stable supply High content of vitamins and healthy fatty acids (Omega 3) Low feed conversion ratio 1 kg feed gives almost 1 kg fish Fish adapts to temperature High yield (few bones and fins) Multiple slaughtering periods and good forecasting systems FOCUSED FISH FEED PRODUCER BioMar EWOS Skretting Marine Harvest Austevoll/Lerøy Multiple farmers 2014 FINANCIALS Revenue 8,451m EBITDA 574m - margin 6.8% EBIT 434m - margin 5.1% ROIC 22.9% Employees GUIDANCE Revenue ~9,000m EBIT m The only sustainable way to increase the supply of fish is by fish farming. It is not possible to increase the wild catch without environmental consequences.

32 BioMar growth potential Existing markets Continued growth in salmon markets Adequate capacity in medium term Continental market expected to remain flat Improvements due to scale, logistics and R&D Maintaining market shares requires capex m 3.0m 5.0m farmed salmon/trout in Norway 1.2m 3.6m 6.0m tons feed used in Norway 5,5% 2,6% implied feed CAGR Source: SINTEF, 2012, Verdiskaping basert på produktive hav i 2050 Freshwater 10%Carps 40% Shrimps 8% Tilapia 4% Salmonids 4% Other Asia 32% Europe 4% China 57% Other 34% LatAm 4% Other 3% Interim Report 2015H New markets Huge world outside existing BioMar markets BioMar can add superior feed performance Strong toolbox for optimising recipes Continuous improvements and R&D New raw materials Ability to process recipes Risk controlling in volatile raw material markets Food safety and sustainability However; farmed fish do not starve today! Food safety and sustainability comes at a cost High-value/EU-US consumed species likely step 1 Farmers need to be professional enough to measure and value performance, etc.

33 The other businesses in the portfolio

34 Fibertex Personal Care Interim Report 2015H HIGHLIGHTS Global top 5 producer of nonwovens for hygiene Supplies fabrics used in baby diapers, feminine hygiene and incontinence care products Spunbond/spunmelt technology, an integrated onestep process from raw material to fabric Polypropylene is the key raw material Strong regional business 3 production lines in Denmark 4 production lines in Malaysia Printing facilities in Germany THE BUSINESS MODEL Growing and staying market (no alternatives) A regional industry customers and suppliers Simple supply chain from PP to rolls of fabric Large investments DKK +300m for a new line High level of competence efficiency/quality Low margin high volume Service and innovation makes the difference "Preferred" partner customized activities Core business: Spunbond for hygiene INDUSTRY CHARACTERISTICS Large customers requiring good relationship Sensitive, small and autonomous industry Raw materials (few suppliers, linked to oil) One supplier of machinery (Reifenhäuser) Customers (limited number) Commodity products (low-margin business) Salary and level of energy in Denmark Radical innovations are very difficult 2014 FINANCIALS Revenue 1,788m EBITDA 308m - margin 17.2% EBIT 171m - margin 9.6% ROIC 14.4% Employees GUIDANCE Revenue ~1,700m EBIT m Asian market continues to grow and requires significant capex Increasing focus on value-added products (softer, bulkier, loftier and printed)

35 Spunmelt is a regional industry Interim Report 2015H AMERICAS Market size c. 400k t Market growth NA c. 0-2% LatAM c. 10% FPC market share 0% EUROPE Market size c. 450k t Market growth c. 0-2% FPC market share c. 10% Customers P&G, SCA, KC, Hartmann, TZMO, Ontex, Abena, a.o. Competitors Pegas, PGI, Fitesa, Union, Dunour, Gulsan ASIA Market size c. 300k t Market growth c % FPC market share c. 15% Customers P&G, SCA, KC, Unicharm,Daio, Henang, DSG, a.o. Competitors Toray, PGI, Asahi, Mitsui, Universial, Avgol

36 Fibertex Nonwovens Interim Report 2015H HIGHLIGHTS AUTO 2014 FINANCIALS European top supplier of industrial nonwovens Huge versatility in product applications Needle punching and spunlacing technology State-of-the-art technology on all sites STRATEGIC PRIORITIES Ensure critical mass / continue profit increase Leverage on European market leader position and increase global presence Strong competitiveness through operational improvements and state-of-the art techonology Continue transformation; reducing dependency on volume/commodity products and growing value-added/specialty products 10kt capacity 7kt capacity 16kt capacity 4kt capacity 16kt capacity About ⅓ of revenue Market leader after French 2011 acquisition Significant pipeline Substitutes existing fabrics and part of car construction CONSTRUCTION About ⅓ of revenue Infrastructure growing in emerging markets Value added products e.g. within composites Geotex. is commodity INDUSTRIAL About ⅓ of revenue Dependent on economic cycles Volume products Ongoing application extension e.g. nano Hood insulation Trunk carpets Parcel trays Wheel housing Building Composites Geotextiles Concrete Bedding Flooring Furniture Acoustics Revenue 1,048m EBITDA 128m - margin 12.2% EBIT 62m - margin 5.9% ROIC 8.4% Employees GUIDANCE Revenue ~1,200m EBIT 75-85m 2015 will be a year of transition where new capacity will be installed and existing production lines will be upgraded. EBIT target is 8-9%.

37 Hydra-Grene Interim Report 2015H HIGHLIGHTS Leading Danish supplier of hydraulic components Specialised trade and engineering business Strong R&D resources taking active part in customer product development Solid base in Danish aftermarket and OEM Long-term growth and huge potential in the global wind turbine industry SELECTED PRODUCTS AND BRANDS THE DANISH INDUSTRIAL BUSINESS Aftermarket customers (~25% of total revenue) Both premium and low-cost items at stock Predominantly distributed through dealers End customers within agro, lift/truck, transport OEM customers (~25% of total revenue) Product know-how and customer support key Component distribution and own production Prod. of blocks, pipes and pump stations End customers are manufacturers of agricultural equipment, lift/trucks, boats, etc. THE GLOBAL WIND TURBINE INDUSTRY Hydra-Grene s position Present in Europe, China, India and USA Strong within gear (filter blocks and systems) Total solutions in water cooling and pumps Trends and drivers Turbine manufacturers wants fewer suppliers Established manufacturers setting the standards Increased documentation and quality More focus on aftermarket services 2014 FINANCIALS Revenue 566m EBITDA 78m - margin 13.8% EBIT 60m - margin 10.6% ROIC 22.6% Employees GUIDANCE Revenue >500m EBIT 50-60m The offshore segment is gradually gaining importance and will become a thrid leg.

38 Kramp Interim Report 2015H Leading European supplier of spare parts and accessories for the agricultural sector #1 in BeNeLux, Germany, Poland and Nordic countries 9 central warehouses covering 22 European countries Combination of Kramp and Grene Grene wholly owned by Schouw & Co. since % ownership in Kramp from non-cash merger between Grene and Kramp in 2013 Schouw & Co. owns 20%, management 50% and NPM Capital (Dutch long-term PE) 30% Integration and harvesting synergies A perfect geographical match Expanding product ranges Growing OEM business (partnerships) Margin improvement through scale Best practice (warehouse, IT, logistics) Optimizing working capital (stockturn) Potential annual synergies EUR 10-30m 2014 FINANCIALS Revenue 4,906m EBITDA 529m - margin 10.8% EBIT 405m - margin 8.3% Employees 2, GUIDANCE Revenue ~5,250m EBIT m Nine distribution centers covers 22 European countries. Former Kramp in blue, former Grene in orange and Russian JV in turquoise

39 Contact Investor Relations CEO/President Kasper Okkels Jens Bjerg Sørensen schouw.dk