An introduction. April 2011

Transcription

1 An introduction April 2011

2 Contents 1. Introduction to Charter 2. ESAB 3. Howden 4. Charter financial highlights 5. Appendices Charter Chairman and CEO biographies Manufacturing locations 1

3 Introduction to Charter Charter International plc has two international engineering businesses, one focused on welding, cutting and automation ( ESAB ), and the other on air and gas handling ( Howden ). Further information is available at 2

4 Five-year record 2006 m 2007 m 2008 m 2009 m 2010 m Revenue 1, , , , ,719.6 Adjusted operating profit Adjusted profit before tax Equity shareholders funds Cash/(Debt) Adjusted earnings per share (pence) Notes: 1) Before amortisation and impairment of acquired intangibles and goodwill and excluding exceptional item 2) Before amortisation and impairment of acquired intangibles and goodwill, exceptional items and (losses)/gains on retranslations of intercompany loan balances 3) Excluding exceptional items, gains or loses on inter-company loans and amortisation of goodwill 3

5 Charter s Global Presence Charter s 2010 global presence Rest of World 12% In 2010, Charter s global sales amounted to 1,719.6 million, split broadly equally between the developed economies of Western Europe and North America, and the higher growth economies of Central and Eastern Europe, Asia and South America Asia 18% South America 16% North America 20% Europe 34% 4

6 ESAB: Overview ESAB Welding and cutting World leading manufacturer and supplier of: welding consumables welding equipment (standard and bespoke); and cutting equipment Revenue ( 1,157.6 million in 2010) spread approximately equally between developed economies (Western/Northern Europe and North America) and growth economies (Central/Eastern Europe, South America and Asia) Key end user markets are energy, infrastructure and vehicles Adjusted operating margin of 7.7 per cent in 2010 (2009: 6.4 per cent) Manufacturing footprint Predominantly low cost locations (Central/Eastern Europe, Asia and South America) 5

7 ESAB: global leadership ESAB s global strength is spread across developed and growth markets USA #2 in welding consumables Europe Market leader Russia Largest international welding company ESAB s revenue by destination (2010: 1,157.6m) India Market leader Asia 9% India 6% ROW 6% Europe 33% Brazil Market leader South America 21% Russia & CIS 6% North America 19% Argentina Market leader 6

8 ESAB: vision Our Vision To be the global leader, to be our customers preferred partner and the global authority in welding and cutting 7

9 ESAB: business model 8

10 ESAB: Index 1. Welding industry background 2. ESAB products 3. ESAB manufacturing and supply chain 4. ESAB financials 5. ESAB growth opportunities and outlook 9

11 Major cutting and welding end users Pipeline and pipe mills Energy Oil, gas & process Mobile machinery Shipbuilding & offshore Infrastructure construction Automotive All other 10

12 Industry profile welding and cutting : $13.6 billion globally By region By end user segment South America 6% Other Asia 6% India 5% Europe 19% Infrastructure construction 24% Shipbuilding 9% Russia & CIS 8% All Others 10% North America 15% General Industrial 26% Energy 26% Japan 8% China 23% Automotive 15% Notes: 1 The global welding and cutting market in which ESAB operates excludes welding robots and automation products. 11

13 Nittetsu Panasonic Fronius Kemppi Major welding and cutting companies 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Source: ESAB estimates 12 Kiswel Atlantic China MEC-Messer Thermadyne Hyundai Welding Global market share Lincoln Electric ESAB ITW Bohler Air Liquide Welding Tianjin Golden Bridge Kobe Tianjin Bridge

14 ESAB and Lincoln Based on estimated 2010 turnover Turnover by geography Turnover by product 2,500 2,500 2,000 2,000 US$M 1,500 1,000 ESAB SeAH Cutting & brazing South America Asia Pacific Europe US$M 1,500 1,000 ESAB SeAH Welding equipment, cutting and automation Welding consumables North America LINCOLN ESAB 0 LINCOLN ESAB Source: ESAB estimates 13

15 Global steel consumption a leading indicator of the demand for welding products The World Steel Association ( WSA ) estimates steel use of 1,272 MMT during 2010 and it is expected to increase to 1,340 MMT (up 5.3%) in Figures by region are set out below: Russia & CIS North America Latin America 2009 % change -28% -36% -24% 2010 % change +27% +31% +28% 2011 % change Europe -33% +19% +6% +11% +9% +9% China +25% +7% +4% Asia (ex China) -17% +15% +6% RoW -2% +7% +5% World -7% +13% +5% World excluding China -24% +19% +7% 14

16 Global steel consumption a leading indicator of the demand for welding products (continued) 2010 to 2020 significant volume growth expected: Europe and North America: continued recovery from 2009 recession Emerging markets: development drives demand World Steel Consumption (MMT) Change (2010 to 2020) Europe % Russia & CIS % North America % Latin America % China % Other Asia % Total Asia , % Rest of world % World 1, , , % Source: AME Mineral Economics 15

17 ESAB: Index 1. Welding industry background 2. ESAB products 3. ESAB manufacturing and supply chain 4. ESAB financials 5. ESAB growth opportunities and outlook 16

18 ESAB: supplying the welder Consumables Welding Equipment Welding Automation Cutting PPE Gas Apparatus 17

19 ESAB: the world of welding Welding is driven by: Better materials Safety and productivity Environment Customer service Brand Welding complexities: Product range Channels Regional preferences Technology 18

20 ESAB: Welding consumables the electrode The traditional welding consumable used in manual welding applications. The welding electrode can be a very advanced product; approximately 60% of ESAB s electrode sales are in welding critical applications requiring advanced technology and stringent process control. In Europe and North America, process conversion away from electrodes to wire is advanced, however a core volume of electrode demand remains for specialist applications. In emerging markets, usage of electrodes is more widespread and ESAB is looking to grow market share in these markets, partly through technology transfer. 19

21 ESAB: Welding consumables welding wire The welding consumable used in automated welding applications. Includes solid wires, and also flux-cored wires. A more standardised product than electrodes, but ESAB has developed a range of technologically advanced proprietary products. The Marathon Pac TM wire delivery system can offer truly non-stop production in robot applications, such as automotive production lines. 20

22 Worldwide weld metal consumption by weld process 5,000 4,500 Thousands of metric tonnes 4,000 3,500 3,000 2,500 2,000 1,500 1, E 2010F Electrodes Solid wire Sub Arc wire Flux cored wire Source: ESAB estimates 21

23 Worldwide weld metal consumption by region 5,000 4,500 Thousands of metric tonnes 4,000 3,500 3,000 2,500 2,000 1,500 1, E 2010F N. America Europe Asia Other Source: ESAB estimates 22

24 ESAB: Standard welding equipment Catalogue welding equipment, generally for manual welding applications ESAB provides a range of standard equipment for manual and semi automatic welding applications The range covers most welding processes including welding with electrodes, solid or cored wires and TIG. There are a number of equipment families suitable for all requirements and environments, including Caddy, Origo and Aristo MMA welding (electrodes) MIG welding TIG Welding 23

25 ESAB: Automated equipment ESAB offers a wide range of solutions for mechanised and automated welding ESAB is well positioned for growth in the energy segment, which is further supported by the acquisition of Romar and the development of the new telescopic Column & Boom The new telescopic Column & Boom provides increased safety, accuracy and efficiency while consuming significantly less space then existing solutions ESAB s new telescopic boom in a see through pipe 24

26 ESAB: Cutting equipment Cutting techniques include oxy fuel, plasma, laser and water-jet, according to the type of steel being cut and the precision required. ESAB has developed a comprehensive range of machines, including a new range for emerging markets (FALCON), made in China. Aftermarket business now contributing >30% of sales strong focus to build rapidly. 25

27 ESAB: Index 1. Welding industry background 2. ESAB products 3. ESAB manufacturing and supply chain 4. ESAB financials 5. ESAB growth opportunities and outlook 26

28 ESAB: manufacturing locations Gothenburg Traverse City Florence Monterrey Ashtabula Hanover Laxa Perstorp Katowice Karben Terni St Petersburg Sychevsky Opole Vamberk Ihtiman Mor Nagpur Chennai (2 factories) Calcutta Wuxi Singapore Weihai Shanghai Jakarta Belo Horizonte Global R&D centre Current manufacturing site St Luis Chascomus 27

29 ESAB: worldwide consumables manufacturing capacity Since 2002, ESAB has increased its manufacturing capacity by over 250,000 tonnes to 700,000 tonnes principally through investment in emerging markets 2009 Capacity 2002 Capacity North America Asia Asia North America South America Central/ Eastern Europe (inc Russia) Western/Northern Europe Central/ Eastern Europe (inc Russia) South America Western/Northern Europe 28

30 ESAB: Index 1. Welding industry background 2. ESAB products 3. ESAB manufacturing and supply chain 4. ESAB financials 5. ESAB growth opportunities and outlook 29

31 ESAB: revenue 2010 m Welding 1,015.4 Cutting and automation Revenue 1, m ,

32 ESAB: revenue by destination Change m m % Europe % North America % South America % Asia % Rest of world % Total revenue 1, , % Asia 9% India 6% ROW 6% 2010 Europe 33% Asia 10% India 5% ROW 6% 2009 Europe 36% South America 21% Russia & CIS 6% North America 19% South America 17% Russia & CIS 5% North America 21% 31

33 ESAB: adjusted operating profit m m Welding Cutting and automation (0.4) 10.4 Adjusted operating profit m Share of profits of associates and joint ventures (post tax) Adjusted operating margins Welding 8.8% 6.6% Cutting and automation (0.3%) 5.6% Overall 7.7% 6.4% 11.8% 12.2% 11.9% 1 Before exceptional items, acquisition costs and amortisation and impairment of acquired intangibles and goodwill 32

34 ESAB: analysis of performance of welding consumables Volumes Revenue Gross margin Totals 465k tonnes 844m 31.2% Changes in: Total consumables +15% +15% +0.8pps - electrodes +7% +7% +0.4pps - solid wire +30% +27% +2.7pps - other consumables* +7% +14% +1.1pps * Other consumables include cored wire and flux Breakdown of consumables revenue 2010 ( 844m) Other consumables 26% Electrodes 40% Solid w ire 34% 33

35 ESAB: Index 1. Welding industry background 2. ESAB products 3. ESAB manufacturing and supply chain 4. ESAB financials 5. ESAB growth opportunities and outlook 34

36 ESAB: driving growth Growth market development; strong shares in: Brazil Russia India Increase channel presence e.g. 50% increase in distributors in Europe over 5 years Operational improvement and cost-down focus Build the Brand Put customer at the heart of the organisation: Service Support Knowledge New products to market 35

37 ESAB: corporate developments - Sychevsky Background ESAB has grown sales in Russia to circa US$100 million in 2010 Extensive network of 200 distributors serviced by factories in St Petersburg and Central Europe Acquisition of Russian electrode manufacturer Located circa 300km west of Moscow High-end electrodes; key end user segment is energy Provides additional 6,000 tonnes of capacity; capable of further expansion Value accretive for Charter shareholders 36

38 ESAB: outlook Developed world continued slow recovery (reflecting GDP) Emerging market/ BRIC growth Mixed performance across sectors, with vehicles especially remaining strong globally Oil & gas and world energy expected to gather strength Long-term outlook increasingly positive beyond 2011, but macro financial, economic and political risks remain Escalating steel prices, especially in Europe 37

39 Howden: Overview Howden Air and gas handling equipment A world-leading international applications engineer, headquartered in Glasgow, Scotland Designs, manufactures, installs and services air and gas handling equipment Centrifugal and axial fans Air and gas rotary heat exchangers Compressors and blowers After-market revenues are around 36 per cent of total Revenue ( million in 2010) spread evenly between developed and growth markets Adjusted operating margin of 12.1 per cent in 2010 (2009: 11.4 per cent) Customers in the power and energy industries account for over three quarters of sales 38

40 Howden: Products and services Centrifugal fan Axial fan Rotary heat exchanger Cooling fan Compressor Aftermarket Howden supplies high integrity Fans Rotary heat exchangers Compressors for use in power generation, oil & gas and industrial applications which demand extremely high levels of efficiency, reliability and availability. 39

41 Howden: business model 40

42 Howden: Index 1. Strategic overview 2. Coal-fired power 3. Thomassen Compression Systems 4. Summarised financials 5. Business development and growth drivers 41

43 Howden: Strategic objectives Charter s strategy for Howden: Decreasing revenues from new equipment for coal-fired power Increasing revenues from compressors Increasing revenues from the aftermarket Increasing the proportion of revenues from higher growth economies 42

44 Howden: steps taken to reposition the business Rationalised product range 2002: wide range of fans (including HVAC) and other products 2011: tightly focussed on engineered fans and compressors Coal-fired power 2002: depressed conditions 2011: strong long-term outlook for power, especially in China and India Compressor business 2002: small 2011: likely to account for around one-quarter of revenues 43

45 Howden: steps taken to reposition the business (continued) Manufacturing 2002: integrated general manufacturing from steel fabrication to assembly 2011: emphasis on design, value-added manufacture, installation and service, with extensive outsourcing Aftermarket 2011: revenues represent one-third of Howden s total; the business is well positioned to benefit from high sales of new equipment in recent years Global coverage Howden s business is spread across the world, assisted by recent developments in India (L&T joint venture) and Brazil (new facility) 44

46 Howden: diversification Howden revenue 2005 ( 345.1m) Howden revenue 2010 ( 562.0m) 13% 34% 29% 36% 11% 13% 13% 18% 6% New equipment - coal-fired power (emerging markets) New equipment - coal-fired power (developed markets) New equipment - compressors New equipment - other Aftermarket 27% New equipment - coal-fired power (emerging markets) New equipment - coal-fired power (developed markets) New equipment - compressors New equipment - other Aftermarket 45

47 Howden: Index 1. Strategic overview 2. Coal-fired power 3. Thomassen Compression Systems 4. Summarised financials 5. Business development and growth drivers 46

48 Howden: major market coal fired boiler with FGD 47

49 Howden: Market share engineered fans and heat exchangers Howden s principal competitors Total market ( 1.3 billion) Fans TLT Turbo TLT Babcock Shanghai Blowers Fläkt Woods Chengdu Howden 19% In-house 15% Rotary Heat Exchangers Alstom Shanghai Boiler Harbin Balcke Dürr Competitors 66% In-house market: Certain equipment companies use their in-house capability to manufacture fans and heaters without seeking external tenders. Source: Howden estimates (based on 2010 figures) 48

50 Howden: future of coal World primary energy demand by fuel (Mtoe) Coal Oil Gas Nuclear Renewables According to the IEA, coal is expected to have an increased share of world primary energy demand. By 2030, fossil fuels will still provide for some 80 per cent of primary world energy. 49

51 Howden: electricity generation Projected global electricity generation capacity by fuel - GW Coal Oil Gas Nuclear Renewables Under the IEA current policies model, coal-fired electricity generation will almost double between 2007 and Coal-fired generation (GW) 1,440 1,897 2,705 As percentage of total 31.9% 33.1% 34.6% 50

52 Howden: coal-fired generating capacity Projected coal-fired electricity generation capacity by region (IEA) 1,400 1,200 1,000 GWs North America Europe India China Source: International Energy Agency 51

53 Howden: market opportunities The potential sales value for Howden equipment on a large plant varies significantly by industry Plant type m Large coal fired boiler in Europe* Retrofit FGD plant on large boiler in Europe Major sinter plant in China (UK supply) ** Large waste water treatment plant 5,000MT/yr cement plant in Europe Large coal mine in China * Excludes FGD. Prices in China are 50-65% of those in Europe ** Includes drive system 52

54 Howden: Index 1. Strategic overview 2. Coal-fired power 3. Thomassen Compression Systems 4. Summarised financials 5. Business development and growth drivers 53

55 Howden: Thomassen Compression Systems Acquired in March 2011 for a consideration of 100 million, debt funded Transforms Howden s presence in the engineered compressors market and creates a new world leader in hydrogen compression Creates a stronger platform for future growth Supplies high-power engineered compressors (up to 25MW), mainly for use in the oil and gas industry Record revenue and PBT in 2010 of million and 20.0 million Pro forma net assets of 17.0 million Earnings per share enhancing in 2011; covers cost of capital in 2012 Cost and revenue synergies of at least 5 million per annum by

56 Howden: Thomassen Compression Systems (continued) Thomassen background Based in Rheden, The Netherlands Designs, assembles and services reciprocating compressors Power range up to 25MW Mainly sells into the oil refining industry in Asia, Europe, South America and Africa Around one-third of revenues in aftermarket Installed base of 2,500 cylinders worldwide 280 employees; majority in Rheden with balance in sales/service functions worldwide 26% 5% Thomassen 2010 Sales by Category 69% Thomassen 2010 Sales by Geography New build Revamp Asia 35% 14% 5% Europe 22% 24% Aftermarket South America Africa Other 55

57 Howden: Index 1. Strategic overview 2. Coal-fired power 3. Thomassen Compression Systems 4. Summarised financials 5. Business development and growth drivers 56

58 Howden: summary of results m m New equipment Aftermarket Revenue Adjusted operating profit Adjusted operating margin % 11.4% 2008 m % 1 Before exceptional items, acquisition costs and amortisation and impairment of acquired intangibles and goodwill 57

59 Howden: revenue by destination Change m m % Europe (23.8%) North America (16.0%) South America % Asia (8.4%) Rest of world % Total sales (10.5%) South Africa 13% ROW 11% 2010 Europe 23% South Africa 12% ROW 8% 2009 Europe 27% Other Asia 5% China 19% South Am erica 7% North Am erica 22% Other Asia 4% China 20% South Am erica 5% North America 24% 58

60 Howden: order book composition m 424m Emerging 56% Emerging 60% m Developed 44% Developed 40% Dec Dec 2010 Rest of World Asia South America North America Europe 59

61 Howden: order book movements Order book m m Balance brought forward Net orders booked* Sales (562.0) (627.8) Foreign exchange impact Balance carried forward Ratio of bookings to sales ( book to bill ) 95% 80% * Includes the benefit of acquisitions in

62 Howden: rolling 12 month orders received m Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 61

63 Howden: Index 1. Strategic overview 2. Coal-fired power 3. Thomassen Compression Systems 4. Summarised financials 5. Business development and growth drivers 62

64 Howden: business development - BRIC China Howden Hua a leading Chinese player with Western technologies 5 plants; 1,000 employees; 300 graduate engineers; Supplying critical components to US and Europe. Significant prospects Major opportunity to introduce Thomassen compressors through established Howden channels; Power market stronger; 25% growth in power aftermarket; Other new products Transportation Wastewater 63

65 Howden: business development - BRIC India Brazil JV with Larsen & Toubro in May 2010; targeting 30% of Indian new build power market Strengthening opportunities in steel and oil & gas sectors Economic growth and infrastructure development support future growth At the end of 2010, Howden had around 29m of outstanding orders to customers in India Acquired leading Brazilian competitor 2008 Developed facility 2010 Sales into ethanol, mining and oil & gas sectors Growth and resources drive opportunities Russia Oil & gas compressor opportunities Infrastructure and Olympics Resources mining Future opportunity power infrastructure 64

66 Howden: business development resource-driven economies South Africa Mining fans and refrigeration Power shortages new build and maintenance Steel strong position Aftermarket leading position; recently signed a 5 year maintenance contract with Eskom Australia Coal bed methane (CBM) A new market for screw compressors First contract for 72 bare shaft screw compressors (in excess of 10m) Next order imminent Mining investment Strong aftermarket New compressor packaging acquisition 65

67 Howden: other growth opportunities Oil & gas sector: Howden s position transformed by acquisition of Thomassen Compression Systems Opportunity for significant synergies (cross-selling; aftermarket; global sourcing) Unconventional gas (including CBM) new and important market Aftermarket Now some 50% of gross profit Outstanding prospect is China New opportunities North America Compressors 10% p.a. revenue growth target Environmental protection Transport rules in the US; revival in North America FGD and SCR Long term carbon capture 66

68 Howden: aftermarket segments and characteristics The aftermarket All activities to maintain, modify, upgrade and extend the product performance and operational life Selling new equipment creates a potential revenue stream at higher margin over the operating life, typically 30 to 40 years, normally commencing around 4 years after original equipment has been installed Product Annual revenue Centrifugal fan, power Centrifugal fan, steel VP axial fan Rotary heat exchanger Screw compressor Turbo compressor 4% 8% 4% 6% 2% 3% Annual revenue as a percentage of the original capital cost 67

69 Financial highlights Charter International plc

70 Charter: Income statement Revenue Adjusted operating profit Exceptional items Amortisation and impairment of acquired intangibles and goodwill Other adjustments Operating profit Year ended m 1, (1.5) (5.8) (0.2) Year ended m 1, (26.8) (2.5) (0.3) 96.0 Net financing charge retirement benefit obligations (4.1) (7.7) Other financing charge before retranslation of intercompany loan balances (1.5) (3.1) Gains/(losses) on retranslation of intercompany loan balances Net financing charge Share of post tax profits of associates and joint ventures Profit before tax Profit before tax Amortisation and impairment of acquired intangibles and goodwill Exceptional items and other adjustments Net finance charge retirement benefit obligations Net (gains)/losses on retranslation of intercompany loan balances Adjusted profit before tax Taxation on adjusted profit Taxation on amortisation and impairment of acquired intangibles and goodwill Taxation on net financing charge retirement benefit obligations Taxation on net gains/(losses) on intercompany loan balances Taxation on exceptional items Taxation Profit after tax Earnings per share Basic Adjusted (7.5) (25.3) (0.5) (1.5) (25.2) p 66.1p 4.0 (6.8) (4.0) (22.7) (1.2) 4.2 (17.9) p 55.0p 69

71 Charter: adjusting items Earnings Earnings per share Earnings Earnings per share m pence m pence Unadjusted results Exceptional items Restructuring* Business disposal Post retirement benefit curtailment gain (8.4) (5.0) - - Acquisition costs Amortisation and impairment of acquired goodwill and intangibles Net finance charge retirement benefit obligations Retranslation of intercompany loan balances (7.5) (4.6) (4.0) (2.4) Taxation on adjusting items (0.1) (0.1) (4.8) (2.9) Minority share of adjusting items (0.2) (0.1) (0.2) (0.1) Adjusted results

72 Charter: Cash generation m m Adjusted operating profit Adjusting items (7.5) (29.6) Operating profit Depreciation and amortisation Net working capital (increase)/ decrease (48.8) 50.7 Other items 1 (45.6) (12.5) Cash generated from operations Capital expenditure and capitalised development costs (62.1) (65.7) Tax (36.5) (46.0) Dividends paid to equity shareholders (36.7) (35.0) Other (25.7) Net cash absorption (49.1) (0.9) Note: Note: 1 Other items include retirement benefit obligations, other provisions, share based payments, loss/(profit) on sale of business and fixed assets. 2 Other items include finance charges, acquisitions, investment in associates and joint ventures and dividends paid to minority shareholders. 71

73 Charter: Balance sheet Non-current assets (excluding retirement benefit assets) Inventory Current trade and other receivables Current trade and other payables Current net working capital Net retirement benefit obligations Derivative financial instruments and tax liabilities Assets held for sale Net cash Provisions Other long-term liabilities (excluding borrowings) Net assets As at m (396.3) (138.7) (54.5) (60.6) (5.6) As at m (378.8) (162.2) (53.9) (73.9) (3.0) Equity shareholders' funds Non-controlling interests Total equity

74 Charter: Summary Market leadership ESAB: a world leader in welding with growing market share Howden: the global leader in air and gas handling Well positioned Business spread between developed and emerging economies Approximately 70 per cent of sales going either to emerging markets or the energy sector Manufacturing footprint Predominantly in low cost areas Timely restructuring of ESAB s manufacturing base Charter strong balance sheet Total Equity Shareholders Funds of million and net cash of 1.8 million at 31 December 2010 Dividend Increased dividend covered 2.9 times by earnings Well positioned to deliver growth potential in both businesses 73

75 Appendix 1

76 Chairman: Lars Emilson Lars Emilson, 69, has led a distinguished international business career, having held a number of senior executive positions over many years. He has lived and worked in Sweden, the United States and the United Kingdom. He joined PLM AB, a Swedish pan-european packaging group in 1970 after graduating in economics from Lund University, Sweden and was appointed Chief Executive of PLM in 1999 shortly before it was acquired by Rexam plc. In 2000 he joined the Board of Rexam with responsibility for the worldwide beverage can business, becoming Chief Executive from 2004 to He retired from Rexam on 31 January 2007 and has subsequently become a nonexecutive director of Filtrona plc. 75

77 Chief Executive Officer: Michael Foster Michael Foster, 58, joined Charter plc as a Non- Executive Director in December 2001 and became an Executive Director on 1 January He became Chief Executive on 1 July He was formerly Executive Director, responsible for UK, USA and Ireland at RMC Group plc. He gained an Honours Degree in Engineering and Electrical Sciences at Cambridge University and is qualified as a solicitor. 76

78 Appendix 2

79 ESAB: Europe manufacturing locations Karben Laxå Gothenburg Perstorp Katowice Opole Vamberk Mór St Petersburg Sychevsky Linkweld Ihtiman Cutting and equipment factory Consumables factory Global R&D centre 78

80 ESAB: North America manufacturing sites Traverse City Ashtabula Hanover Florence Monterrey 79

81 ESAB: South America manufacturing sites Belo Horizonte San Luis Buenos Aires Acquired 2007 Chascomus 80

82 ESAB: China manufacturing sites Weihai Consumables (2008) Zhangjiagang Consumables Zhangjiagang Equipment (2008) Shanghai Cutting factory Wuxi two automation factories 81

83 ESAB: India manufacturing sites 82

84 Howden: Europe principal locations Belfast (fans) Glasgow (Head office and compressors) Naestved (design and fans) Hengelo (fans) Rheden (compressors) Paris (compressors) Coswig (fans) Cartagena (heat exchangers) 83

85 Howden: North America manufacturing locations New Philadelphia (fans) Mexico City (fans) 84

86 Howden: China manufacturing locations Weihai (existing fans and heat exchangers factories) Weihai (compressors opened September 2007) 85

87 Howden: rest of world Sao Paulo Johannesburg Port Elizabeth Melbourne 86

88 Howden: The compressor business Glasgow HCL Acquired December 2006 Paris HCL Acquired December 2006 Rheden Acquired March 2011 Weihai Opened September 2007 Johannesburg 87