agenda – rotating equipment services

Rotating Equipment Services

Peter Alexander, Division President | February 12, 2015

Capital Market Day 2015

Rotating Equipment Services | Capital Market Day 2015 | slide 2

Agenda – Rotating Equipment Services

Point of Departure

Summary

Sulzer Full Potential for RES

Mission & Strategy

Operational Excellence


The best of two worlds: OEM and independent services…

BU AME

BU EMEA

BU APAC

US, Canada Mexico Brazil, Argentina Colombia, Venezuela

UK, Germany Netherlands, Norway France, Spain Middle East, Russia

Australia Indonesia, India China, Singapore

Equipment serviced

PumpsOEM and 3rd party

ElectricalGenerators and Motors

We are well positioned to become the worldwide preferred and integratedrotating equipment service provider

with the best and broadest technical capabilities available

TurboTurbines and Compressors


….with a unique service proposition for our customers

Single point of service reduces customer costs and complexity

Gas and steam turbines, centrifugal

compressors, pumps, motors, generators

100 locations in 25 countries

OEM and non-OEM expertise

Solving our customersproblems

True servicemindset

Bestquality

andtechnology

Broadest rangeof capabilities

Globalreach and

localpresence


Rotating Equipment ServicesDivision Snapshot

Sales by market segment1)

Sales by geography (2014)

Sales and profitability development

32%45%

32%

28%1%

2%35%

25%

2013 2014

Oil and gas PowerWater General industry

1) 2014: Rotating Equipment Services; 2013: Turbo Services

EMEA39%

AME49%

APAC12%

706 725

9.3%

10.0%10.1%

8.9%

2013 2014Sales (CHFm) ROSR opROSA


Market outlook generally positive despite unclear development in the oil and gas market

AME

EMEA

APAC

Oil and Gas Power General Industry

Low oil price might extend usage cycle of equipment

EU capacity reduction

Developing market

New investments driven by low gas prices

Scale back of conventional in Europe; Opportunities in MEA

Continuous growth of ISP opportunities

Mining in Latin America with improvement

potential

Industrial base (especially UK) declining

in Europe

Stability in Australia, opportunities in China

Our short-term market outlook

Source: Market reports; Management opinion

Rotating Equipment Services | Capital Market Day 2015 | Slide 7

Leading position in growing and sustainable markets

#2 service provider in addressable market OEM share ~70%

Gas Turbines

Steam Turbines

Electrical

Pumps




Compressors


Our market position

Large installedbase

Headroom for growth in the

markets

Future-proof machines

Ready for new technologies

Large installed base and growth opportunity



Point of Departure

Summary



Mission & Strategy


The worldwide preferred and integratedrotating equipment service provider with

the best and broadest technical capabilities available

Mission and growth drivers for Rotating Equipment Services

RES Mission


Combine offer, optimize sites

Close white spots

Access new segments and services

Partnerships and joint ventures

Provide more services to more customers


Our global footprint of over 100 service locations enables us to offer more services to more customers

Turbomachinery

Pumps

Electromechanical

Capability of Service Center

Service center

RES HQ

Planned service center

Type of location

UK:24 SCs


Success stories: Leveraging RES structurein all regions

Tallgrass Pony Express Pipeline project Installation and commissioning of 15 pump / motor skids Insourcing of the installation service

PCK Refinery overhaul project Compressor repair and retrofit in NL, DE, and CH Leverage existing relationship

Singapore and Indonesia full scope Simplified service selection for a customer Offering the full service portfolio out of one shop

Americas

EMEA

Asia-Pacific



Point of Departure

Summary



Mission & Strategy


Sulzer Full Potential: Spare parts growth and optimization of service branch network

Spare Parts Full Potential Optimization Service Branch Network

Individual branch action plans per branch for all product types

Co-location, right sizing and operational improvements of service branches for substantial cost improvements

Capability transfer for offering extensions of branches across products

Optimization across entire spare parts value chain

Improved manufacturing and sourcing

Pricing optimization and sales improvement

Streamlining of organization and processes

Service full potential



Point of Departure

Summary


Vision & Strategy



RES delivery in line with Sulzer vision

Significant cost savings potential from functional integration

Single contact point for customers to Sulzer services

Reduced organization complexity

We are working together for the benefit of Sulzer

Performance-critical equipment and service solutions

Technology and market leadership

Shared KPI’s with PE

Sharing of common market information between divisions Harmonized front-

end, leveraged relationships Know how and

expertise leveraging globally Combined market

and regional approach

One Focused Market-oriented


Great market proposition with our combined offering

Focusing on operational excellence

Opportunities to grow geographically and through acquisitions

Rotating Equipment Services: Generating value by providing “more services to more customers”

Be the worldwide preferredand integrated rotating

equipment service provider with the best and broadest

technical capabilitiesavailable


This document may contain forward-looking statements, including, but not limited to, projections of financial developments and future performance of materials and products, containing risks and uncertainties. These statements are subject to change based on known and unknown risks and various other factors that could cause the actual results or performance to differ materially from the statements made herein.Furthermore, the information shown herein has been compiled to the best knowledge of the authors. However, Sulzer Ltd. and its affiliated companies, including all directors, officers and employees cannot assume any responsibility for the quality of the information, and therefore any representations or warranties (expressed or implied) as to the accuracy or completeness of the information is excluded.

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