Schouw & Co. ABG Sundal Collier Small & Midcap Seminar 16 APRIL 2015 VP BUSINESS DEVELOPMENT, STRATEGY & IR KASPER OKKELS

Transcription

1 Schouw & Co. ABG Sundal Collier Small & Midcap Seminar 16 APRIL 2015 VP BUSINESS DEVELOPMENT, STRATEGY & IR KASPER OKKELS

2 Schouw & Co. at a glance ABG small & midcap seminar years of history 125 years in packaging 25 years as a conglomerate 5 major investments BIOMAR The World s third largest manufacturer of quality feed for industrialised fish farming 8.5bn Listed on Nasdaq Copenhagen since revenue DKK 11.8bn EBIT 708m About 15% return on invested capital employees in more than 20 countries Strong balance sheet virtually no debt Long-term major shareholder FIBERTEX PERSONAL CARE The World s fifth largest producer of spunbond for hygiene FIBERTEX NONWOVENS Leading European manufacturer of nonwovens for industrial applications HYDRA-GRENE Leading in Denmark within hydraulic components and solutions KRAMP (20%) The absolute largest supplier in Europe of accessories and parts for farming 1.8bn 1.2bn 0.5bn 4.9bn 2014 reveue i DKK

3 ABG small & midcap seminar We build a portfolio of leading Danish industrial businesses and develop them through valuecreating, active and long-term ownership No divestments of core businesses Even bigger and stronger businesses Further develop the portfolio Open to value-creating ownership structures

4 All graphs are LTM and adjusted for the sale of Martin Professional and the financial effect from the combination of Grene and Kramp Strong track-record Revenue 12.0% Revenue CAGR adjusted for sale of Martin and Grene Reduction in NIBD 2.1bn reduction due to strong CF, and effect from Vestas, Lerøy, Martin, Grene ABG small & midcap seminar EBIT 16.2% EBIT CAGR adjusted for sale of Martin and Grene Free Cash Flow 1.5bn Accumulated FCF incl. M&A Operating CF CAGR 15,5% ROIC ex. goodwill 16.9% Growth in ROIC five years in a row ROIC incl. goodwill 14.0% Shareholder yield solid Dividends increased every recent 4 years total share buyback 410m

5 Strategic goals ABG small & midcap seminar 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

6 Looking towards 2020 Operational streamlining Significant investments will form the basis for solid organic growth Margin management to improve EBIT and generate significant cash flow Global size Active participation in M&A to drive consolidations Geographical expansion in attractive growth markets ABG small & midcap seminar Group highlights Significant and strong businesses in the portfolio Good momentum but still room for improvement New activity in the portfolio under the right circumstances Likely the strongest platform in 137 years of company history Ambitious targets do not fulfill themselves

7 A very short update on our businesses

8 *Long-term market growth over the salmon cycle ; flat/negative volume development in 2015 BioMar ABG small & midcap seminar NORTH SEA AMERICAS CONTINENTAL EUROPE ASIA Atlantic salmon, trout Atlantic salmon, coho, trout, tilapia Sea bass, sea bream, portion trout, eel, a.o. Shrimp, tilapia, trout, sturgeon, turbot, catfish, pangasius, etc. Market size ~2.0m t Market growth* 5-6% Market share 20-25% Market size ~1.4m t Market growth* 5-6% Market share 25-30% Market size ~0.7m t Market growth 0-1% Market share 25-30% Market size +10m t Market growth 4-5% Market share - Profitable customers, high fish prices, limited short-term growth Competition intense Marine Harvest vertically integrated Challenging farming environment Feed players strong Costa Rica as planed Startup in shrimp feed Running smoothly Challenges in the Mediterranean Area Realising pledges Startup in Turkey The largest farming region in the world Feed quality low Focus on partnerships with Asian businesses

9 Fibertex Personal Care Stabile European market Almost 100% penetration Growth from product innovation Significant growth in Asia Middle class is growing Increased penetration Increased competition in Malaysia Pressure on prices Decline in volume ABG small & midcap seminar Innowo Print 100% owned Leading in direct nonwoven print Internationalisation Differentiation important Outlook Very volatile raw material prices Guidance at 2014 levels

10 Fibertex Nonwovens ABG small & midcap seminar Hood insulation Trunk carpets Parcel trays Wheel housing Leading in Europe in industrial nonwovens Many product applications Needle punching and spunlacing technology State-of-the-art technology Executing turnaround and growth plans International acquisitions in 2011, 2014 and 2015 Not yet at target Growth and consolidation remains high on the agenda Revenue LTM Building Geotextiles Bedding Furniture Composites Concrete Flooring Acoustics Customer groups Auto; part of the construction and as a cheap fabric Construction; e.g. for infrastructure and composites Industry; e.g. furniture, bedding and other cyclical businesses Outlook 2015 will be a transition year New capacity required Effect from expansion in USA and South Africa EBIT LTM

11 Hydra-Grene ABG small & midcap seminar Hydraulic components and solutions Wind turbine manufacturers largest customer group OEM and aftermarket in Denmark Offshore oil and gas small but growing Increase in sales to wind turbine industry Sub supplier margins are under pressure Lower visibility in wind turbine industry Hydra-Grene supplies many wind customers Outlook Setback in wind in 2015 but growth in offshore 2015 guidance below 2014 levels

12 Kramp ABG small & midcap seminar 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 20% ownership in Kramp from Grene merger in 2013 Outlook Continue integration and harvesting synergies Expanding product ranges and growth through partnerships Margin improvement and best practices Optimizing working capital (stockturn) 2017 ambition revenue EUR 1bn and 13% EBITDA Nine distribution centers covers 22 European countries. Former Kramp in blue, former Grene in orange and Russian JV in turquoise

13 Q&A

14 Appendix 2014 Full Year Presentation

15 2014 at a glance: A good, solid year ABG small & midcap seminar revenue 11.8bn Growth 1.2% // 2013: 11.6bn Increase in activity in all businesses return on invested capital 16.9% ROIC incl. goodwill 14.0% Growth in ROIC five years in a row NIBD/EBITDA 0.0x Insignificant increase in NIBD compared to 2013 Dividends 153m // share buyback 180m (gross) EBIT 708m 12% growth from comparable level in m up due to payment on impaired receivable cash flow from operations 628m 2013: 667m Free cash flow 273m acquisitions 2 bolt-on Fibertex Nonwovens: Platform in USA Fibertex Personal Care: Printing on nonwovens

16 Key figures ABG small & midcap seminar Revenue and income Revenue 11,784 11,645 EBITDA 1,070 1,039 - margin 9.1% 8.9% EBIT margin 6.0% 5.9% Value adjustment of financial investments Cash flows Cash flows from operating activities Cash flows from investing activities Of which investment in PPE Cash flows from financing activities Schouw & Co. share price C20 CAP indexed to Schouw & Co. MidCap indexed to Schouw & Co. Invested capital and financing Working capital 1,775 1,424 Net interest bearing debt (NIBD) Total equity 6,074 5,746 ROIC excl. goodwill 16.9% 16.1% ROIC incl. goodwill 14.0% 13.3% NIBD/EBITDA % increase in share price in 2014 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

17 BioMar ABG small & midcap seminar highlights Volume +1.6% Revenue 2.9% EBIT +10.2% Revenue b b 2015 ~8.5b EBIT m m m ROIC (ex gw) % % 2014: Strong first half Modest increase in volumes, driven by Chile EBIT increased due better than expected finish of the year Unexpected payment lowered need for provisions by 13m Fairly unchanged market shares throughout the year Still pressure in salmon markets Region North Sea remains very competitive Biology and salmon prices in Chile continues to be an issue Strategy intact: Seeking growth in new markets/species Moderate 2015 outlook Competition remains intense in key markets Still uncertainty in southern Europe, especially Greece No market growth anticipated Revenue LTM EBIT LTM

18 BioMar 2014-Q4 financials ABG small & midcap seminar Q4 YTD D D LTM 2013 Revenue % % EBITDA % % EBITDA% 7,6% 8,1% -7% 6,8% 6,2% 10% 6,8% 6,2% EBIT % % EBIT% 6,0% 6,6% -8% 5,1% 4,5% 13% 5,1% 4,5% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 39,3% 38,9% 1% 38,9% Inv. Capital (ex goodwill) % ROIC 22,9% 20,1% 14% 20,1% Net Working Capital % in % of LTM revenue 11,6% 8,5% 37% 8,5% NIBD % times LTM EBIDTA 0,7x 0,7x 2% 0,7x

19 Fibertex Personal Care ABG small & midcap seminar highlights Volume +11% Revenue +15% EBIT +5% Revenue b b 2015 ~1.7b EBIT m m m ROIC (ex gw) % % Growth from new capacity Volume growth driven by Malaysia Over capacity and pressure on sales prices Seamless running in of 4 th production line in Malaysia Better than expected capacity utilisation in Danish factory Strong regional player Top 3 position in Europa and South East Asia Operational excellence and innovation is mandatory Acquisition of Innowo Print gives competitive edge Consolidation in 2015 Internal optimization and focus on efficiency New capacity to be installed but not in 2015 Positive EBIT effect from falling raw material prices in Q1 likely offset later in the year 2015 guidance around 2014 level Revenue LTM EBIT LTM

20 ABG small & midcap seminar Fibertex Personal Care 2014-Q4 financials Q4 YTD D D LTM 2013 Revenue % % EBITDA % % EBITDA% 18,6% 18,9% -1% 17,2% 18,6% -7% 17,2% 18,6% EBIT % % EBIT% 10,5% 10,6% -1% 9,6% 10,6% -9% 9,6% 10,6% Profit before tax % % Cash Flow from operations 30-5 #### % Equity % in % of total assets 38,8% 38,9% 0% 38,9% Inv. Capital (ex goodwill) % ROIC 14,4% 13,6% 6% 13,6% Net Working Capital % in % of LTM revenue 16,4% 15,9% 3% 15,9% NIBD % times LTM EBIDTA 2,2x 2,2x 0% 2,2x

21 Fibertex Nonwovens ABG small & midcap seminar highlights Revenue +12% EBIT +67% Turnaround completed Revenue m ,048m 2015 ~1,200m EBIT m m m ROIC (ex gw) % % Continuing positive momentum Strong growth in high-value segments Substantial progress in EBIT Effect from high volume and transformed business model Leading in Europe international focus State-of-the-art equipment at all sites Strong platform in US following acquisition Increased ownership stake in Fibertex South Africa Promising pipeline; strong product development 2015 will be a transition year Upgrading technology and installing new capacity Consolidation of South Africa (negative EBIT) Uncertainty about raw material prices Revenue LTM EBIT LTM

22 ABG small & midcap seminar Fibertex Nonwovens 2014-Q4 financials Q4 YTD D D LTM 2013 Revenue % % EBITDA % % EBITDA% 10,6% 10,6% 0% 12,2% 10,9% 12% 12,2% 10,9% EBIT % % EBIT% 3,4% 3,2% 4% 5,9% 4,0% 49% 5,9% 4,0% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 32,7% 32,4% 1% 32,4% Inv. Capital (ex goodwill) % ROIC 8,4% 5,1% 63% 5,1% Net Working Capital % in % of LTM revenue 30,4% 30,6% -1% 30,6% NIBD % times LTM EBIDTA 4,1x 4,4x -8% 4,4x

23 Hydra-Grene ABG small & midcap seminar highlights Revenue +18% EBIT +30% High activity in wind Revenue m m 2015 >500m EBIT m m m ROIC (ex gw) % % Strong 2014 following high activity in wind Wind account for more than 40% of sales Effect from good utilisation of capacity Strong foothold in Danish OEM market Developing the business Increasingly complex products and system solutions New ERP system implemented Wind turbine development projects, e.g. V164 Offshore segment gradually becoming a third leg Lower activity in 2015 Lower sales to the wind turbine sector Increased international competition Variations in sales during the year Most industry/oem stable, but agro-oem sales down Revenue LTM EBIT LTM

24 Hydra-Grene 2014-Q4 financials ABG small & midcap seminar Q4 YTD D D LTM 2013 Revenue % % EBITDA % % EBITDA% 10,7% 12,7% -16% 13,8% 13,4% 3% 13,8% 13,4% EBIT % % EBIT% 7,6% 5,6% 36% 10,6% 9,6% 11% 10,6% 9,6% Profit before tax % % Cash Flow from operations % % Equity % in % of total assets 48,0% 41,4% 16% 41,4% Inv. Capital (ex goodwill) % ROIC 22,6% 18,2% 24% 18,2% Net Working Capital % in % of LTM revenue 33,1% 36,0% -8% 36,0% NIBD % times LTM EBIDTA 1,2x 2,0x -37% 2,0x

25 Kramp 2014 highlights Revenue +7% EBIT +16% Progress in all countries Revenue b b 2015 ~5.25b EBIT m m m ABG small & midcap seminar : Growth in a difficult market Many agro customers facing difficulties Kramp s business model robust: high share of wearables and repair parts Strong volume growth in Russia but negative effect from weak RUB Consolidating the merger Integration of organization, sales forces, procurement, etc. Dual brand strategy in Poland implemented Streamlining of assortment and product offering Good outlook for 2015 Revenue forecasted to grow more than 5%, EBIT minimum the same Recognised in Schouw & Co. as associate after tax at 55-65m Synergies continues to materialise

26 Other activities Xergi Significant progress in 2014 Revenue up 52% to 311m (100%) EBIT (for 100%) 13m (2013: 2m) 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 ABG small & midcap seminar Incuba Invest Small deficit in 2014 Navitas Science Park commissioned in Q3 16% ownership in Capnova Properties HQ at Chr. Filtenborgs Plads in Aarhus Two factories in Frederikshavn (Martin Prof.) Small property in Aarhus rented to former Grene Industri-service

27 2015 guidance REVENUE DKK million 2015 forecast 2014 actual 2013 actual BioMar c. 8,500 8,451 8,702 Fibertex Personal Care c. 1,700 1,788 1,554 Fibertex Nonwovens c. 1,200 1, Hydra-Grene above Other/eliminations Total revenue c. 12bn 11,784 11,645 Kramp (100%) c. 5,250 4,906 4,594 EBIT DKK million ABG small & midcap seminar forecast 2014 actual 2013 actual BioMar Fibertex Personal Care Fibertex Nonwovens Hydra-Grene Other c Total EBIT Associates etc Financial investments Other financial items c Profit before tax ,109 Kramp EBIT (100%)

28 Appendix Selected introductory presentation material

29 M&A activity ABG small & midcap seminar 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) 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

30 ABG small & midcap seminar 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

31 Conglomerate value creation ABG small & midcap seminar Business level 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 Group level 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

32 ABG small & midcap seminar 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

33 Our mantra ABG small & midcap seminar 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

34 ABG small & midcap seminar 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

35 Ownership ABG small & midcap seminar 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

36 Strategic highlights in the businesses ABG small & midcap seminar 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

37 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 ABG small & midcap seminar 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.

38 BioMar

39 Fish farming/feed geography ABG small & midcap seminar 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% 2014 revenue DKK 4.1bn 2014 revenue DKK 2.6bn 2014 revenue DKK 1.8bn *Long-term market growth over the salmon cycle ; flat/negative volume development in 2015 Shrimp, tilapia, catfish, pangasius, etc. Market size +10m t Market growth 4-5% Market share - Karmøy, Norway Grangemouth, UK Pargua, Chile Guanacaste, Costa Rica Volos, Greece Nersac, France Myre, Norway Castro, Chile Pargua, Chile Brande, Denmark Dueñas, Spain

40 BioMar s strategy ELEMENTS DIRECTION AND PRIORITIES ABG small & midcap seminar 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

41 Ambitions from 2012 strategy plan ABG small & midcap seminar 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

42 Mega-trend driven demand ABG small & midcap seminar GLOBAL POPULATION GROWTH ,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 Population, billion Asia Africa GROWTH IN AQUACULTURE wild catch aquaculture Source: FAO, 2013, farmed and wild salmonids 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 ~8,500m 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.

43 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% ABG small & midcap seminar 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.

44 The other businesses in the portfolio

45 Fibertex Personal Care ABG small & midcap seminar 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)

46 Spunmelt is a regional industry ABG small & midcap seminar 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

47 Fibertex Nonwovens ABG small & midcap seminar 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 65-75m 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%.

48 Hydra-Grene ABG small & midcap seminar 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 45-55m The offshore segment is gradually gaining importance and will become a thrid leg.

49 Kramp ABG small & midcap seminar 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

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