Schouw & Co. Presentation · Fibertex Nonwovens 2017Q1 +13% 338 382 2017Q1 8.3% +1.3pp 7.0% 2016Q1 30 23 +32% EBIT DKKm Revenue DKKm ROIC ex gw % Financial Strategic Outlook Revenue

Schouw & Co. 2017 Q1Investor presentation

MAY 2017CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

2017 Q1 interim report

Schouw & Co. introduction

Businesses in the portfolio

Agenda

Schouw & Co. 2017Q1

+29%

3.5842.776

2017Q1

20.0%

+1.8pp

18.2%

2016Q1

178157

+13%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ A good quarter as expected

▪ Revenue up 29% (organic 20%) and EBIT up 13% (3% organic)

▪ GPV not consolidated in 2016Q1

▪ Very satisfactory increase in ROIC, now 20.0%/16.6% excl/incl goodwill

▪ Net cash position by end of Q1 – NIBD effect from Borg DKK ~1.1bn

▪ 2017 will be a year of consolidation and integration

▪ Expanding capacity and investing in the future platform

▪ Borg Automotive will be a new leg from Q2 – value creating acquisition at EV/EBITDA17E multiple of 6.8x

▪ Unchanged outlook in all businesses

▪ Total guidance raised following inclusion of Borg

▪ Revenue now expected at DKK 16.4bn

▪ Upper half of EBIT range still most likely; DKK 1.065-1.135m

08.05.2017Schouw & Co. Q1 Interim Report 3

BioMar 2017Q1

+30%

1.9971.532

2017Q1

38.2%

+15.9pp

22.3%

2016Q1

52

22

+134%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ Revenue increases 30% to DKK 2bn driven by 24% increase in volume

▪ EBIT more than doubles from DKK 22m to 51m

▪ Strong development in the salmon division, continued effect from margin management and increased sale of functional feeds

▪ Attractive ROIC, low NWC following longer creditor days

▪ BioMar’s strategy focusses on innovation & expansion

▪ Strong feed concepts and solid portfolio of functional feeds

▪ Building the world’s largest fish feed factory at Karmøy site

▪ Establishing in China through Tongwei JV, 50k t factory and acquisition

▪ Announcement of green field establishment in Australia – 110k t by 2019

▪ Unchanged outlook with revenue above DKK 9.4bn and EBIT 510-550m

▪ Volume growth is expected – primarily in the salmon region

▪ Q2 is high season for contract renewals –big volumes at play

▪ Underlying core earnings to exceed 2016 level when adjusted for one-offs from R&D activity/grants and reversal of debtor provision


Fibertex Personal Care 2017Q1

473458

+3%

2017Q1

15.3%

+-7.7pp

23.0%

2016Q1

55

87

-37%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ Revenue increases 3% to DKK 473m despite lower volumes

▪ EBIT of DKK 55m and lower than LY as expected

▪ Higher raw material prices increases revenue but decreases EBIT; total deviation of about DKK 20m (2017Q1 -9m and 2016Q1 +11m)

▪ Solid global demand for printed products and progress in Innowo

▪ FPC has a solid long-term road map for profitable growth

▪ New line in Malaysia - the 5th in Malaysia, 25 km from the existing; total investment of DKK 400m; ready around year-end

▪ Global increasing demand for print – looking into business plans for further expansion

▪ Revenue about DKK 2bn driven by increase in volumes

▪ EBIT of DKK 230-260m

▪ Volatile raw materials can impact profitability – expect to catch up on loss on raw materials in Q1


Fibertex Nonwovens 2017Q1

382338

+13%

2017Q1

8.3%

+1.3pp

7.0%

2016Q1

3023

+32%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ Revenue increases 13% to DKK 382m with sales up in all markets, including US and South Africa, and solid demand in auto

▪ EBIT up by 7m to DKK 30m following higher activity and product mix

▪ South Africa – the historically weak spot – is progressing and has reached EBITDA break-even

▪ Ongoing transformation “from volume to value”

▪ Investing in segments like auto, composite, filtration, nano and acoustic

▪ New capacity in the Czech Republic supports growth in value segments

▪ Optimistic but realistic outlook for 2017

▪ Revenue DKK 1.4bn and EBIT DKK 80-100m

▪ Increased likelihood of ending in the upper end of the range

▪ Currently struggling with adequate compensation from higher PP and polyester prices


HydraSpecma 2017Q1

476453

+5%

2017Q1

16.8%

+-6.8pp

23.6%

2016Q1

3630

+19%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ Revenue up 5% to DKK 476m and EBIT increases to DKK 35m

▪ Progress in most countries as well as OEM and aftermarket

▪ Effect from higher activity and synergies secures ROIC above 15%

▪ NWC at same level as LY despite increase in activity

▪ Purchase Price Allocation of about DKK 6m

▪ Solid Nordic position – and progressing global expansion

▪ Investing in organization, scale and operational excellence

▪ Increasing activity in China following acquisition of Etola in 2016

▪ Optimising factory footprint and utilising cross-sales opportunities

▪ The business in the portfolio most dependent on the business cycle

▪ Currently good outlook in automotive and wind, but low visibility and soft demand in marine sector

▪ Revenue of DKK 1.8bn and EBIT DKK 100-120m reiterated


GPV 2017Q1

261209

+25%

2017Q1

15.7%

2016Q1

1716

+6%

EBIT DKKm

Revenue DKKm

ROIC ex gw %

Financial

Strategic

Outlook

▪ Develops as expected with solid progress in revenue to DKK 261m

▪ EBIT at 2016 level; effect from Mexico startup and BHE acquisition

▪ Good activity and high order intake

▪ No material PPA effect in GPV in 2017 (and beyond)

▪ Ambitious growth agenda targeting DKK 1.5bn in revenue by 2020

▪ Green field establishing in Mexico according to plan

▪ More capacity in Asia may be required to secure growth

▪ Acquisition of BHE; sales DKK 100m, EV DKK 42m, no EBIT in 2017

▪ Potential to take over larger outsourcing cases from customers

▪ 2017 will be a year of consolidation and building platform

▪ Revenue a little less than DKK 1bn and EBIT DKK 50–60m

▪ Political uncertainty in US/Mexico can obviously impact


Outlook

BorgAuto-

motive

Outlook

CapitalMarkets

Day

▪ Borg Automotive new leg from 2017Q2

▪ Pre-PPA EBIT (9 month) DKK 110-130m

▪ Borg contributes with DKK ~800m in revenue

▪ Group revenue DKK 16.4m incl. Borg

▪ EBIT outlook maintained in all businesses

▪ Confirming that total EBIT likely will be in the upper end of the range

▪ 15 June (morning) in Copenhagen

▪ CEO’s of BioMar and GPV participating

▪ Details including venue to be confirmed

DKK million

2017

outlook

2016

actual

BioMar 510-550 581

Fibertex Personal Care 230-260 246

Fibertex Nonwovens 80-100 81

HydraSpecma 100-120 111

Borg Automotive 60-80 -

GPV 50-60 44

Other c. -35 -24

Total EBIT 1,065-1,135 1,038

Associates etc. c. 20 566

Financial items, net c. -40 -27

Profit before tax 975-1,115 1,578

*1 *1

Notes: *1) Including DKK 24m from PPA effect in Specma; *2) GPV only recognised in 9 months of 2016; 3; After PPA of DKK ~50m in 2017*4) Group expectations, the sum of the ranges is DKK 995-1,035m; *5) Associates in 2016 includes sale of shares in Kramp and SMB

*2

*5

*4

*3





Agenda

Schouw & Co. at a glance1108.05.2017Schouw & Co. Q1 Interim Report

HISTORY

FINANCIALS

FOOTPRINT

139years of

company historyyears in

packaging

125years as a

conglomerate

29

14.4billion DKK

revenue (2016)million DKK EBIT (2016)

1,038% ROIC

ex. goodwill (2016)

20.2

~6,000employees across

the globe countries with

production sites

23major long-term

shareholder

1

Our value proposition12

1

2

3

4

6

5

Diversified portfolio

Leading B2B businesses

Long-term ownership

ROIC focused

Financially strong

Active ownershipWe build a portfolio of

leading Danish industrial businesses and develop them

through value-creating, active and long-term

ownership

MISSION

08.05.2017Schouw & Co. Q1 Interim Report

We strive to be among the best in creating value in a proper and

trustworthy manner

VISION

DIVERSIFIED

PORTFOLIO ACTIVE AND

DEVELOPING

OWNERSHIP

OPENNESS

FINANCIAL

VERSATILITY

STRATEGIC

ELEMENTS

PROFITABLE

GROWTHEFFICIENT

USE OF

CAPITAL

FUTURE-PROOFING

ACTIVE

OWNERSHIP

MODEL

Modus Operandi

GROWTH PROFIT RETURN GEARING PAYOUT PORTFOLIO

Significant growth every

year

Benchmark level

profitability

ROIC > 15% (dependent on risk)

Investment grade capital

structure

Constant or increasing dividends

5-7 big and strong businesses

Strategic goals

10 years of solid development16

16

14.4

11.6

9.88.2

07 1513

12.5

14

9.5

11.8

1211

11.9

10

12.6

09

8.4

+6.5%

08 16

20%

+9.4pp

11

10%

0907

14%

08 15

18%

13

16%15%

14

17%

1210

6%8%

11%

831708685

772646

369

190124

439

16

1,038

07 0908 1510 1413

+10.0%

1211 16

12,489

08

2,000 2,375

5,094

07 09

9,131

6,812

13

+10.5%

14 1512

3,188 3,5112,173

10

5,313

1116

-0.7

15

-4.2 times

-0.4

14

0.0

1310 12

4.0

2.9

0.0

1.7

08 09

2.6

3.9

07

3.5

11

4,108

1615

2,139

13 14

+1.7%

2,3822,052

1211

3,287

08

3,5413,166

1009

3,7433,334

07

2,873

ROIC ex goodwillRevenue (DKK bn) FTEs

NIBD/EBITDAEBIT (DKK m) Market Cap (DKK m)


Ownership17

GivescoMain shareholder for more than 40 years; controlled by the Eskildsenfamily

Hornsylds LegatTrust whose sole purpose is to own shares in Schouw & Co.

Treasury sharesShares owned by Schouw & Co.

Institutions and retailDanish and international shareholders (about 50/50 split)

28%

15%

7%50%


Schouw & Co.’s role in the wind turbine industry08.05.2017Schouw & Co. Q1 Interim Report 18

1994 1996 1997 1999 2004 2013

DKK 40m invested in Micon▪ Subsequent add-on investments▪ 92% ownership by 1997

A merger creates NEG Micon▪ All meetings at Schouw & Co.▪ Schouw & Co. owns 46% of the

listed company

Combining NEG Miconand Vestas▪ Schouw & Co. plays a very

active role

Nordtank Energy Group contacts Schouw & Co.▪ Nordtank has 1.5 MW turbine▪ Micon has 600 MW turbine▪ A perfect match

Crisis!!!▪ NEG Micon revenue DKK 4.7bn▪ Equity lost, shares plunge▪ Schouw & Co. appoints CEO▪ Capital injection of DKK 250m

Sale of remaining shares▪ Ownership gradually reduced▪ Remaining 2% sold in 2013▪ Total return of DKK 1.8bn and

IRR of 27%

1988 Schouw & Co. buys Grene

1990s Internationalisation

1995 Focus on industry

30 years of active ownership

2013 Merging Grene with Dutch peer Kramp

2016 Schouw & Co. sells the shares – very unlikely to obtain more than 20% ownership

2010 Hydra in China + India

2015 Acquisition of Specma

2016 Acquisition of Etola2009

Demerger of Grene

and Hydra


The transformation of Fibertex08.05.2017Schouw & Co. Q1 Interim Report 20

Fibertex, then partly owned by EAC, was seeking a long-term owner willing to invest in growth

Schouw & Co. acquires the shares in the combined Fibertex business at DKK 350m

Green-field expansion in Malaysia for hygiene products

Acquisition and construction of a new factory in the Czech Republic

Fibertex de-merged into two

Investment plan ‘capturing the future’ Relocation of 200 jobs Acquisitions in France, US, South Africa Turned around from loss to profit State-of-the-art equipment at all sites Leading position in most segments

Continued expansion in Asia 5 lines in Malaysia – 8 lines total Technological upgrade in Denmark Total investments DKK ~2bn Strict focus on innovation Establishing print business in Germany

2001 2002-2009 2010 2011-

Revenue

DKK 600m Total revenue (2017)

DKK ~3.4bn

Exercising best ownership08.05.2017Schouw & Co. Q1 Interim Report 21

In Out

Borg acquired at DKK 1.15bn(EV/EBITDA 6.8x)

The acquisition of Borg Automotive is earnings enhancing and value creating and therefore

very positive.

Carnegie (March 2017)

Kramp shares sold for DKK 1.0bn(EV/EBITDA 11.0x)

We like the prospects for continued growth in Borg’s revenue and earnings over the next years with Schouw

paying an attractive2017e EV/EBITDA

“

“

“

“Handelsbanken (March 2017)

In our sum of the parts, we valued the stake at only DKK

690m, so this was a substantial surprise!

Fearnley Securities (Sep. 2016)

“

“

We argue that the divestment is a positive for

shareholders, as we see significant upside to the

transaction price versus our SOTP valuation

Nordea (Sep. 2016)

“

“

The strategic journey22

2016

14.4

2015

12.5

+16

2014 20172006

11.6

7.4

2001 2013

2.2

11.7

1988

0.3

DiversificationBigger and stronger portfolio

Bigger and stronger businesses

Consolidating the conglomerate

Revenue DKK billion

08.05.2017

Go Strong

Schouw & Co. Q1 Interim Report

Acquisitions Mergers Divestments

BorgEV: 1,150m

85%

KrampEV: 6.500m

20%

Merger

Grene/Kramp

Merger

NEG/Vestas

M&A activity23

MartinEV: 500m60+40%

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

SchulstadEV: 2.700m

62%

FibertexEV: 660m

100%

ProvimiEV: 675m

100% (BioMar)

TharreauEV: 300m

100% (FIN)

ElopakEV: 1.200m

50%

SjøtrollEV: 1.200m

51%

Hydro-power

MartinEV: 900m

100%

Merger

Xergi

BioMarEV: 1.800m68%+32%

GreneIndustri-service

NWSEV: 150m

100% (FIN)

InnowoEV: 100m85% (FPC)

Deal flow is not a target

Best ownership philosophy

applied when

divesting businesses

FibertexSouth Africa+48% (FIN)

SpecmaEV: 650m

100%

GPVEV: 400m

100%


BHEEV: 40m

100%

Diversified portfolio

INDUSTRYB2B with preferences for pro-cessing industry & logistics

SIZEMinimum revenue, or potential of, DKK 1bn

GEOGRAPHYHQ in Denmark, but internationally focused

OWNERSHIPPreferences for 100% (minimum majority share)

LEADING POSITIONOpportunity to set the agenda within niche segments

MANAGMENTStrong and ambitious management

NEW OWNER NEEDNeed for at new owner to support transformation

ACTIVE OWNERSHIPPossibility to exercise active ownership

Investment criteria

Results are created by people




Agenda

R E S U L T S A R E C R E A T E D B Y P E O P L E


BioMar: World’s 3rd largest fish feed producer28

~1 milliontonnes

DKK ~9.4bn

DKK 510-550m

around 900

1.9% CAGR2012-2016

Volume Sales EBIT Employees Growth

▪The World’s third largest producer of quality feed for industrial fish farming

▪Manufactures feed for salmon, trout, sea bass, sea bream, tilapia, shrimp and 40 other species

▪Aquaculture is the only sustainable way to increase the supply of fish

Salmon

EMEA

Emerging

FTU Feed Tial Unit


BioMar: Strong position and growth outlookV

ALU

E P

RO

PO

SITI

ON

MA

RKE

T O

VER

VIE

W 2

01

6

FIN

AN

CIA

L D

EVEL

OP

MEN

TC

OM

PET

ITIV

E EN

VIR

ON

MEN

T2

13 15

980996

980

14

955

-0.4%

12 16

9669.0

8.5

1513

+1.9%

14

8.2

12

8.7

16

8.9

447

12

438

14

434394

1513

+7.3%

16

581

Volume (kton) Revenue (DKKbn) EBIT (DKKm)

Fish farmersFeed manufacturesRaw materials

Salmon• Skretting• EWOS/Cargill• Marine Harvest

EMEA• Skretting• Aller Aqua

Emerging• Cargill, Skretting (global)• Tongwei, CP (Asia)

Marine Protein/Oil• Nordsildmel (meal/oil)• Aker BioMarine (krill)

Protein commodities• Cargill (veg. protein)• Caramuru (veg. protein)• ED&F (veg. oils)

Additives• DSM (pigment, vitamins)• Lallemand (probiotics)

Salmon• Marine Harvest (global)• Lerøy, Salmar, NRS,

Grieg (Norway)• Scottish Seafarm (UK)• Aqua Chile, Multiexport,

Camanchaca (Chile)

Other species• Dias, Selonda (Greece)• Many local

Salmonids

Bass, bream, portion trout

Norway

Scotland

Chile

EastMed

WestMed

Baltic

Costa RicaChina

North Sea20-25%

Chile25-30%

~30%

<1%

~1.6 mton

~0.4 mton

~1.4 mton

~0.7 mton

~10 mton

Size1 (2016)Specie Market M.share

Tilapia, shrimp

Notes: 1) Total addressable market. 2) Non-exhaustive list of selected market participants

~75% of revenue

~25% ofrevenue

<5% of revenue

Revenue

CAGR ‘10-’15 ~7%

CAGR ’16-’17~0%

CAGR ’18-20+~2%

CAGR ’16-’20~3%

CAGR ’16-’20~4-5%

Growth

Aquaculture is a growth industry

• Increasing global population increases the global demand for proteins

• Fish, and especially salmon, is healthy due to the high content of Omega 3

• Aquaculture feed conversion rate is high (2-3x better than poultry/pigs)

• The only sustainable way to increase the supply of fish is by fish farming as wild-catch cannot grow

BioMar is well positioned

• BioMar is global no. 3 in feed for high-value species like salmonids

• Farmed salmon is less than 10% of global farmed fish and BioMar’s current markets are less than 30% the total addressable market for high-value feed

• BioMar aims to grow volume by 50% by 2021 with EBIT of 6% and ROIC > 15%

• Expansion into new markets/species is key to the growth agenda


BioMar: Huge ‘world’ outside salmonA

QU

AC

ULT

UR

E FE

ED M

AR

KET

FOR

ECA

STST

RAT

EGIC

HEA

DLI

NES

KEY

SUC

CES

S FA

CTO

RS

SALM

ON

FA

RM

INIS

VER

Y EF

FEC

TIV

E

+4.1%

+8.2%

4.2

0.8

15 1716

3.7

18

4.5

6.4

141312 20

5.8

5.4

4.1

1.0

7.8

19

2.6

3.1

10

3.2

4.2

0.7

11

Tilapia

Seabass/bream

Other

Shrimp

Salmonids

All high-value species are growing, however at a lower pace

Courage

Innovation

Execution

Openness

Respect

Innovation

Cooperation

Sustainability

Performance

BioMar continuously strives to improve its ability to innovate

BioMar is determined to embrace long-term commitments towards and with stakeholders

BioMar is devoted to developing sustainable aquaculture

BioMar is committed to enabling the aquaculture industry to be a long-term profitable provider of safe, healthy seafood

Values Guiding principles “Let’s innovatate aquaculture”

Salmon

Chicken

Pig

Beef

1.2

5-7

2

3

Feed Con-version Rate1

Edibleyield2

Energyretention3

CO2footprint4

70%

45%

50%

40% 5%

13%

10%

23%

27

12

7

12

Notes: 1) How much feed to gain 1 kg weight. 2) The share for human consumption. 3) How much energy the animal retains until slaughtering. 4) Full lifecycle carbon footprint (incl. processing), Source: ewg.org

‘Must haves’ Differentiators

• Feed with superior growth performance, while maintaining quality of the end product, is the main differentiator

• Feed suppliers can further differentiate themselves through improved price to quality ratio, technical follow-up and ongoing innovativeness in improved feed capabilities

Technical quality of the pellet

Reliability

Logistics

Sustainability

Growth performance

Price to quality

Technical follow-up

Innovativeness


Fibertex Personal Care: Global spunbond manufacturer31

~110,000tonnes

DKK ~2.0bn

DKK 230-260m

around 600

5.3% CAGR2012-2016


▪The World’s #5 manufacturer of spunbondnonwoven fabrics for hygiene applications

▪The products are sold to global customers and used in baby diapers, femcare and incontinence products

▪Increasing middle class and hygiene awarenessincreases the demand for Fibertex Personal Care’s products

Spunbond

Print


Fibertex Personal Care: Strong growth in AsiaH

IGH

CU

STO

MER

CO

NC

ENTR

ATIO

N1

SIG

NIF

ICA

NT

GR

OW

TH IN

NO

NW

OV

ENS

ASI

A IS

TH

E FA

STES

T G

RO

WIN

G R

EGIO

N1

VA

LUE

CH

AIN

PA

RTI

CIP

AN

TS2

42%

18%

9%

12%

17%

16%

EuropeAsia

Rest58%

Rest29%

Top 3 market participants in Asia and Europe

Notes: 1) Source: Euromonitor 2016, 2) Select market participants only

2015

3.8

4.6

6.3

2020

12.1

2010

1.3

2.0

1.6

3.4

9.0

2.4

+6.1%

2.5+7.4%

5.8

Spunbond (hygiene) Other technologiesSpunbond (non-hygiene)

Global growth in nonwovens consumption

Hygiene spunbond growth2010-2015 4.0%2015-2020 4.7%

Main growth drivers• Growing population• Aging population• Increasing income• Technology development

46%

Europe

RoW

Asia

20%

34%

Baby Femcare Incontinence

~70%~10%

~70%~20%

~10%

~1% 21%

23%

56%

25%

44%

31%~4%

~1%

~7%

~6%

CAGR 2015-20

Spunbond hygiene categories

Consumer Goods Manufactures

Hygeine spunbondMachinery and Raw materials

Global• Avintiv (Berry Plastics)• Fitesa• Avgol

Europe• Pegas (Czech Rep.)• Union (Italy)

Asia• Toray (Japan)• Ashai (Japan)

Machinery• Reifenhäuser• Celli Nonwovens

Polypropylene• Borealis • Braskem• Exxon • Sabic• Tasnee• Total

Global• Procter & Gamble

(Pampers, Always)• SCA (Libero, Libresse)• Kimberly Clark

(Huggies, Kotex)

Regional• Ontex (Europe)• Abena (Europe)• Unicharm (Asia)• Kao (Asia)


Fibertex Nonwovens: Leading in industrial nonwovens33

~55,000tonnes

DKK ~1.4bn

DKK 80-100m

around 1,100

9.6% CAGR2012-2016


▪Leading European manufacturer of nonwovens for various industrial applications

▪Huge versatility in product application; sales to automotive industry, construction sector, furniture/bedding, advanced products and wipes

▪Strong focus on increasing share of value-added products by New Product Development and geographical expansion with global customers

Needlepunch

Spunlace

Fibre spinning


Fibertex Nonwovens: Solid progress and tractionN

EED

LEP

UN

CH

TEC

HN

OLO

GY1

AU

TOM

OTI

VE

SEG

MEN

T

BU

SIN

ESS

SEG

MEN

TSTU

RN

AR

OU

ND

PLA

N O

NG

OIN

G

Roll goods

Laminates/composites

Sheets

Needlepunchproducts

50-2,000 g/m2

▪ Motor insulation

▪ Headliners

▪ Seating

▪ Wheel and underbody

Automotive

▪ Technical & cosmetic wipes

▪ Washing gloves

Wipes

▪ Bedding

▪ Furniture

▪ Flooring

Industrial

▪ Geotextiles

▪ Roofing

▪ Specialities

Construction

▪ Medico

▪ Filtration

▪ Composites

Advancedproducts

102

2020

3.2%

2012

79

2004

20152011

2014

20151412 15131110 16

Revenue

151411 1310 12 16*

EBIT

Transformation by extending geographical footprint

* 2016Q2 LTM figures

Global automotive industry growth drivers2

• Lighter cars to reduce fuel consumption and lower emissions

• Reduction of noise and increase • Platform modularisation• Higher safety requirements

FIN’s auto segment

Industry focus areas

• Largest segment, ~30% of revenue• 2012-2015 CAGR ~10%• Margins above average• Big customers like HP Pelzer,

Faurecia, Autoneum, Grupo Antolin

Notes: 1) Fibertex Nonwovens also uses spunlacing technology where fibres are bonded together by water under high pressure. 2) Source: IHS Database


http://www.nonwovensolutions.com/medical-and-wound-care

HydraSpecma: Leading Nordic hydraulic business35

~4.5 millionhoses

DKK ~1.8bn

DKK 100-120m

around 1,100

34.9% CAGR2012-2016


▪The leading hydraulic company in Scandinavia

▪Partly solving complex hydraulic solutions for global industrial customers, partly wholesaler of hydraulic components to Scandinavian OEMs

▪Strong hydraulic knowhow and understanding of customers’ needs combined with day-to-day logistics and state-of-the-art webshop

Hydra

Specma


Hydra/Specma: Combining two hydraulic businessesH

YDR

A-G

REN

EP

RIO

R T

O A

CQ

UIS

ITIO

NC

UST

OM

ER S

EGM

ENTS

AC

QU

ISIT

ION

OF

SPEC

MA

PR

OD

UC

TS

▪ Highly complementing customer segments

▪ Broad geographical presence

▪ Obtaining exposure to many international industrial segments

▪ Strong platform for future growth

▪ Economies of scale

▪ Synergies primarily within sourcing and cross-selling opportunities

Strong in Denmark and in wind

▪ Small but highly profitable

▪ Revenue of DKK ~550m and +10% EBIT

▪ Two segments; Danish OEM and global wind turbine manufacturers

Wind industry growing

▪ Sub-supplier margins under pressure

▪ Low visibility in wind turbine industry

▪ Wind industry volatile and project based

Strategic ambition to grow

▪ Wish to reduce high exposure to wind

▪ Broadening geographical presense

▪ Ambition of reaching DKK 1bn in revenue

M&A required

Specma acquired early 2016 Strategic rationale

▪ A leading Nordic hydraulics and fluid conveyance application provider with strong geographical presence

▪ Revenue of DKK +1.0bn, i.e. significantly bigger than the ‘old’ Hydra-Grene

▪ Unique match between products, competences and knowhow

▪ Acquired at 8.2x EBITDA before synergies

Denmark

Sweden

Finland

Other

WindVehicles

Materialhandling

No

rd

ic

OE

Ms

Glo

ba

l a

cc

ou

nts

+

~40%of sales

~60%of sales

Totalsales of

DKK ~1.8bn


Borg: Europe’s largest auto remanufacturer37

~2 millioncores

DKK ~1.0bn

DKK 150-160m

around 1,400

~11% CAGR2012-2016

Volume Sales1 EBIT Employees Growth

▪Europe’s leading remanufacturer to the automotive industry

▪Remanufactures mechanical parts and mechatronics as starters, alternators, brakes, air condition compressors and steering for all types of cars

▪Solid growth from a growing carpark, longer vehicle lifetime and a global focus on sustainability and circular economy

08.05.2017

Production

Sales

Notes: 1) 2017 full-year comparable figures


Borg: European autoreman set to grow38

REM

AN

UFA

CTU

RIN

G D

RIV

ERS

PR

OD

UC

TS

EUR

OP

EAN

AU

TO R

EMA

N M

AR

KET

A S

TRO

NG

VA

LUE-

CR

EATI

NG

VIS

ION

Forecast

8.0

2014

9.4

2016

8.7

2015 2020

11.610.8

2018

~7%

2019

~8%

10.1

2017

7.4

2012

6.5

2013

7.0

EUR billionGrowing carpark & new sales

2.3% annual car park growth towards 2020

Longer vehicle lifetime+1 year in average lifetime since 2010

Declining number of accidents1% annual reduction in accidents since 2010

Structural change Growing aftermarket liberalisation via regul.

Maturing reman. capabilitiesDrives industry promo-tion/knowledge sharing

Global green agendaSupply concern ‘critical’ to EU (focus on CO2)1

1

2

3

4

5

6

Starters Alternators Brake calipers Air-condition compressors

Steering racks Steering pumps EGR valves Steering columns

Vision: Providing the best customer experience in remanufactured automotive solutions

That means:▪ Pan-European availability of a broad program of applications ▪ Product experience and quality in top class ▪ High usability in services and tools in the complete distribution channel▪ Best core return concept▪ Environmental care – in actions and products▪ Competitive price and profitability in the complete distribution channel▪ All provided by competent and responsible people, interdependent and transparent in

relations, striving for continuous improvement.

Mission: We start the cars and keep them running


GPV: International electronics and mechanics39

~10 millionfinished goods

DKK ~1.0bn

DKK 50-60m

around 1,100

5.1% CAGR1

2012-2016


▪The leading Danish EMS producer with significant presence in low-cost-countries

▪Electronic Manufacturing Services (EMS) and advanced mechanics are supplied to global customers in regulated industries demanding high quality

▪EMS is growing due to increased use of outsourcing and more and more B2B products using electronics due to Internet of Things, Big Data, etc.

Electronics

Mechanics

Notes: 1) Growth adjusted for non-continuing businesses


GPV: Increased use of electronics drives growth40

GR

OW

TH A

GEN

DA

EMS

LIFE

CYC

LE

IND

UST

RY

AN

D C

UST

OM

ERS

SELE

CTE

D M

AR

KET

PAR

TIC

IPA

NTS

Larger outsourcing

cases

GPV 2020

+1.500

Establishing in Americas

Organic Growth

GPV 2015 Active M&Aagenda

850

CustomersEMS businessesInput materials

Selected listed peers• SVI (Thailand)• Scanfil (Finland)• Note (Sweden)• Kitron (Norway)

Non-listed• Huge number of local,

European and inter-national market participants

Main input• Electronic components• Printed Circuit Boards• Metal

Suppliers• Many different and

smaller suppliers

Leading internationalB2B companies• ABB• Grundfos• Spectris• Etc.

Production preparation

Prototype and testing

Design and specification

ConceptProduct idea

Phase outLegacySerial productionProduction initiation

Significant growth ambition

Long production cycle

6-24 months

7+ years 1-10 years

▪ Cleantech (e.g. intelligent pumps, smart meters, efficiency enhancing products, battery management)

▪ Instruments & Industry (e.g. instruments for measurements, process control, standalone equipment, logistics to customers’ end customers)

▪ Medico (focus on tractability and certification)

▪ Marine & Defense (extreme conditions - extreme demands)

Industry growth drivers Customer segments

▪ Global EMS market is EUR +500bn with estimated CAGR of 5-7%

▪ OEMs increase focus on core production and outsourcing of non-core production, such as electronics and mechanics

▪ Electronics are used in more and more products among others due to ‘Internet of Things’ and ‘Big Data’

▪ The penetration of electronics and software in B2B products is increasing


Fish feed Hygiene nonwovens

Industrial nonwovens

Hydraulics EMSAuto reman

Strong position in global growth industries41

Source: Schouw & Co. estimates from various sources

2420

2015

~4%

2020

7

4

~9%

20202015

3

2

~8%

20202015

71

53

~6%

2015 2020

331446

~6%

20202015

Global GDP growth (2015-20)

~3.5%

Volume (m tonnes) Value (USD bn)Volume (m tonnes)Volume (m tonnes) Value (USD bn)

08.05.2017

12

8

2015 2020

~8%

Value (EUR bn)


Contact

Investor Relations CEO/President

Kasper Okkels Jens Bjerg Sørensen

[email protected]

+45 86 11 22 22

Documents

Schouw & Co. Presentation · Fibertex Nonwovens 2017Q1 +13% 338 382 2017Q1 8.3% +1.3pp 7.0% 2016Q1 30 23 +32% EBIT DKKm Revenue DKKm ROIC ex gw % Financial Strategic Outlook Revenue