Divisional Profile Management AG March, 2013
Sulzer Sulzer Pumps Market leader in pump technology and solutions Market leader in surface technology Sulzer Chemtech Market leader for separation, mixing and service solutions Sulzer Turbo Services Leading independent service provider for rotating equipment Main markets served: Main markets served: Main markets served: Main markets served: Oil and gas Transportation Oil and gas Oil and gas Power Power Power Water Transportation Full year 2012: Sales of CHF 4 billion ROS of 10.2% ROCE of 15.5% 17 900 employees MyPresentation slide 2
Sulzer Pumps Market leader in pump technology and solutions Market leader in surface technology Sulzer Chemtech Market leader for separation, mixing and service solutions Sulzer Turbo Services Leading independent service provider for rotating equipment Coating equipment Coating materials Coating services Components is market leader in the fields of surface solutions with a focus on specialized components and engineering products and services, using advanced coating and surface enhancement technologies. MyPresentation slide 3
Vision To be The Leading Global Surface Solution Company providing innovative and high quality products and services to our customers. MyPresentation slide 4
Market - Leader in Surface Solutions Products and Services High-end solutions and products for critical technical surface applications Surface technology equipment and materials Thermal Spray and PVD (physical vapor deposition) coating services Plasma heat treatment services Industrial gas turbine and aero engine components Customer support services Markets Aviation Power Generation Automotive / Racing Other specialized markets (Semicon, Plastic Packaging) Customer Benefits Higher profitability through higher performance, longer product life and environmentally friendly solutions Safety and security through protection of critical components against wear and corrosion e.g. aircraft engine parts Key Figures 2012 (in Millions CHF) Order intake 690 Sales 690 Operating Income (EBITR) 69 Headcount as per December 31, 2012 2'399 MyPresentation slide 5
Broad Base of Surface Technology Solutions Surface Mechanisms Solutions Surface Technologies Nitriding Thin Film Thermal Spray PTA* / Weld Hardface Altering Surface Chemistry depth 0.005 0.8 mm Adding Layers of Material e.g. PVD, CVD, PACVD 0.1 50 µm Adding Layers of Material 20 µm 10 mm Adding Layers of Material 1 20 mm Surface Substrate Substrate Substrate Substrate * PTA = Plasma Transferred Arc Human hair = 60 80 µm MyPresentation slide 6
Substrate temperature [ C] Landscape of Various Coating Processes There are a number of different coating processes for different purposes 1200 1000 CVD 800 Diamond Coatings Welding TIG PTA LC 600 400 Plasma Nitriding PVD PA-CVD Thermal Spray 200 Ion Implant Diamond Like Coatings Cold Spray Electroplating 0-10 -1-0.1 0 0.1 1 10 10 2 10 3 10 4 10 5 Coating thickness or joint thickness [µm] CVD: Friction: LC: PACVD: Chemical Vapor Deposition Carbon Friction Layers Laser Cladding Plasma Assisted CVD PVD: PTA: TIG: Physical Vapor Deposition Plasma Transferred Arc Tungsten Inert Gas Coatings Not in Portfolio MyPresentation slide 7
To compete globally means meeting high customer demands reduce weight increase performance reduce costs extend lifetime preserve environment Surface coating technology is for engineering what the semiconductor technology is for the IT industry MyPresentation slide 8
Surface Coatings add value in a wide range of key industry sectors Aero Fuel Efficiency Other industries Cost reduction IGT Durability Mining Lifetime extension Automotive Quality & Environment Oil & Gas Production Efficiency MyPresentation slide 9
Coatings in the aviation industry reduce fuel consumption globally by 1 million liters per hour Reasons for coatings Less wear, corrosion and oxidation Increased operating temperature Hardchrome replacement for landing gear Today s challenges in the airline industry: Safety Fuel efficiency Costs Value of the coating Environmentally friendly solution Higher fuel efficiency Lower cost of ownership Less noise Less weight Safer Extended time between overhauls MyPresentation slide 10
Coatings in the IGT (Industrial Gas Turbine) industry increase turbine efficiency by >5% Reasons for coatings Gap clearance reduction using abradable seals Temperature resistance Reduced wear and friction Corrosion resistance against the impact of poor quality fuels Today s challenges in the IGT industry: Environmental aspects Fuel efficiency Costs Value of the coating Increased turbine efficiency Increase time between overhaul/ maintenance (TCO) MyPresentation slide 11
Coatings in the automotive industry reduce lubricant oil consumption by 50% Today s challenges in the automotive industry: CO 2 reduction Performance Costs & Quality Reasons for coatings Improved wear protection Corrosion resistance Enhanced surface hardness Chrome-6 replacement Weight reduction Value of the coating Reduced oil and fuel consumption Reduced component cost Reduced CO2 emissions Extended durability MyPresentation slide 12
Coatings in the O&G industry extend lifetimes of components up to 500% Today s challenges in the O&G industry: Maintenance Capacity deeper drilling Costs Reasons for coatings Higher hardness Higher drilling pressure Less abrasion Corrosion resistance (paint substitution) Value of the coating Deeper exploration Reduced maintenance Reduced costs Longer uptime/availability and lifetime Higher capacity MyPresentation slide 13
Coatings in the mining industry increase equipment up-time by factor 2-5 Today s challenges in mining: Harsh exploitation environment Performance Costs Reasons for coatings Enhance hardness of machinery (e.g. excavation buckets, hydraulic cylinders, conveyors) Reduce abrasion and wear Value of the coating Life time extension Less maintenance / down-time Higher availability of machinery Higher extraction rate MyPresentation slide 14
Coatings in the other industries increase production speed and product quality Reasons for coatings Wear protection Low friction coefficients Smooth and Clean surfaces High hardness Low friction Value of the coating Increased lifetime Faster process cycles Cost reduction Improved product quality Longer maintenance intervals Reduction of coolants and lubricants MyPresentation slide 15
Comprehensive Offering Materials Equipment Services Components Customer Support Spray powders Spray wires Braze, weld overlay and plasma transferred arc materials Matrix materials Equipment, integrated systems and spare parts Thermal spraying Physical vapor depositions Plasma nitriding Thermal spray coating Physical vapor deposition coating Nitriding and heat treatment Pre- and postcoating treatment Co-development with OEM's Part manufacturing Conventional and nonconventional machining Technical support Calibration Equipment maintenance Training Research and development DLC Coatings MyPresentation slide 16
Solutions for Key and Specialty Markets Solutions for Surface Mechanism Aviation Power Generation Automotive Other Specialized Markets Thermal Protection Friction & Wear Corrosion Oxidation Clearance Control Sealing Electrical Conductivity Decorative Enhancement Sticking MyPresentation slide 17
Locations & Activities - Close to our Customers Materials Equipment Services Components Sales & Marketing Barchfeld, DE Westbury NY, US Troy MI, US Ft Saskatchewan, CA Lyubersty Moscow, RU Wohlen, CH Westbury NY, US Bergisch Gladbach, DE Wohlen, CH Salzgitter, DE Stalybridge, UK Weissenborn, DE Barboursville WV, US Bergisch Gladbach, DE Niederwürschnitz, DE Herford, DE Altbach, DE Limoges Cedex, FR Bons-en-Chablais, FR Amherst, USA Research Tr. Park, US Shanghai, CN Lyubersty Moscow, RU Bremen, DE Naples, IT Dayton OH, US Sao Paulo, BR Chennai, IN Shanghai, CN Lomm, NL Debrecen, HU Stockport, UK Kelsterbach, DE Wohlen, CH Cwmbran, UK Stockholm, SE Madrid, ES Milano, IT Standdaarbuiten, NL Bron, FR Poznan, PL Abu Dhabi, U.A.E. Westbury NY, US Downey CA, US Jundiai, BR Singapore, SG Padstow, AU Tokyo, JP Shanghai, CN Lyubersty Moscow, RU MyPresentation slide 18
Nearly 80 Years in the Market Place Plasma Technik Est. 1970 Acquired 1985 EPI Acquired 1991 Alloy Metals Acquired 1986 Salzgitter Acquired 1995 Q - Coat Acquired 1998 Metaplas Ionon ( Thin Films ) Acquired 2001 DB Thin Film Acquired 2002 WOKA Acquired 2004 OSU Acquired 2004 BorgWarner Acquired 200 9 Bekaert DLC Acquired 20 10 Protective Coatings LCC Acquired 20 12 Thermoset Acquired 20 12 Interturbine Coatings BV Acquired 2000 Euroflamm Acquired 2001 Select Powertrain Acquired 2002 Wick Acquired 200 6 STT Acquired 200 9 Cold Spray Technology Acquired 2012 Metco Est. 1933 Acquired 1994 Eldim ( Turbine Components ) Acquired 2000 Ambeon Acquired 2004 Equipment Materials Coating Services Component Manufacture MyPresentation slide 19
Contact Us To take control of your surface engineering challenges, contact: Your local Sales Office Visit our web site at www.sulzer.com E-mail us at info@sulzermetco.com All rights reserved. Information included in this presentation is proprietary information of. Unless prior written agreement has been received from, no part of this presentation may be reproduced, distributed, or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording. MyPresentation slide 20
Annex All rights reserved. Information included in this presentation is proprietary information of. Unless prior written agreement has been received from, no part of this presentation may be reproduced, distributed, or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording. MyPresentation slide 21
Surface coating is a core technology for a sustainable future Enabling fuel efficiency Enabling durability Enabling security Enabling performance MyPresentation slide 22
Growth Supported Through Strategic Acquisitions CHF Millions 800 700 600 500 OSU Ambeon WOKA DB Thin Films Select Metaplas Ionon Euroflamm Wick STT BorgWarner Bekaert DLC CAGR 13% Cold Spray Technology Thermoset and Protective Coatings LCC 400 300 Salzgitter Q-Coat Eldim 200 100 Plasma Technik 0 Alloy Metals EPI Metco 85 86 87 88 89 90 91 92 93 94 95 96 97 98 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 MyPresentation slide 23
Presence in Mature and Emerging Markets MyPresentation slide 24