Capital Market Day 2015
Rotating Equipment Services
Peter Alexander, Division President | February 12, 2015
Agenda – Rotating Equipment Services
Sulzer Full Potential for RES

Point of Departure

Mission & Strategy

Operational Excellence
Summary
Rotating Equipment Services | Capital Market Day 2015 | slide 2
The best of two worlds: OEM and independent
services…
Equipment serviced
Turbo
Pumps
Electrical
Turbines and Compressors
OEM and 3rd party
Generators and Motors
BU AME




US, Canada
Mexico
Brazil, Argentina
Colombia, Venezuela
We are well positioned to become the
worldwide preferred and integrated
rotating equipment service provider
with the best and broadest technical
capabilities available
BU EMEA




UK, Germany
Netherlands, Norway
France, Spain
Middle East, Russia
BU APAC
 Australia
 Indonesia, India
 China, Singapore
Rotating Equipment Services | Capital Market Day 2015 | slide 3
….with a unique service proposition for our
customers
Single point of service reduces customer costs and complexity
Solving our
customers
problems
100 locations in
25 countries
True service
mindset
Best
quality
and
technology
Global
reach and
local
presence
Broadest range
of capabilities
OEM and non-OEM
expertise
Gas and steam
turbines, centrifugal
compressors, pumps,
motors, generators
Rotating Equipment Services | Capital Market Day 2015 | slide 4
Rotating Equipment Services
Division Snapshot
Sales by geography (2014)
APAC
12%
Sales by market segment1)
EMEA
39%
25%
35%
2%
1%
28%
AME
49%
32%
Sales and profitability development
45%
2013
2014
Oil and gas
Water
10.1%
10.0%
9.3%
8.9%
Power
General industry
2013
Sales (CHFm)
1)
725
706
32%
ROSR
2014
opROSA
Rotating Equipment Services | Capital Market Day 2015 | slide 5
2014: Rotating Equipment Services; 2013: Turbo Services
Market outlook generally positive despite unclear
development in the oil and gas market
Oil and Gas
Power
General Industry
Low oil price might extend
usage cycle of equipment
New investments driven
by low gas prices
Mining in Latin America
with improvement
potential
EU capacity reduction
Scale back of
conventional in Europe;
Opportunities in MEA
Industrial base
(especially UK) declining
in Europe
Developing market
Continuous growth of ISP
opportunities
Stability in Australia,
opportunities in China
AME
EMEA
APAC
Our short-term
market outlook
Source: Market reports; Management opinion
Rotating Equipment Services | Capital Market Day 2015 | slide 6
Leading position in growing and sustainable markets
Our market position
Gas Turbines
Steam Turbines
 #2 service provider in
addressable market
 OEM share ~70%
 #2 service provider in
addressable market
 OEM share ~65%
Compressors
 #3 service provider in
addressable market
 OEM share ~55%
Pumps
 #2 service provider in
addressable market
 OEM share ~55%
Electrical
 #1 service provider in
addressable market
 OEM share ~30%
Large installed
base
Headroom for
growth in the
markets
Future-proof
machines
Ready for new
technologies
Large installed base and
growth opportunity
Rotating Equipment Services | Capital Market Day 2015 | Slide 7
Agenda – Rotating Equipment Services
Sulzer Full Potential for RES

Point of Departure

Mission & Strategy

Operational Excellence
Summary
Rotating Equipment Services | Capital Market Day 2015 | slide 8
Mission and growth drivers for Rotating
Equipment Services
RES Mission
The worldwide preferred and integrated
rotating equipment service provider with
the best and broadest technical capabilities available
Combine offer,
optimize sites
Operational
Excellence
Partnerships
and joint
ventures
Close white
spots
Access new
segments
and services
Provide more services to more customers
Rotating Equipment Services | Capital Market Day 2015 | Slide 9
Our global footprint of over 100 service locations
enables us to offer more services to more customers
UK:
24 SCs
Capability of Service Center
Turbomachinery
Type of location
Service center
Pumps
Planned service center
Electromechanical
RES HQ
Rotating Equipment Services | Capital Market Day 2015 | slide 10
Success stories: Leveraging RES structure
in all regions
Americas
Tallgrass Pony Express Pipeline project
 Installation and commissioning of 15 pump / motor skids
 Insourcing of the installation service
EMEA
PCK Refinery overhaul project
 Compressor repair and retrofit in NL, DE, and CH
 Leverage existing relationship
Asia-Pacific
Singapore and Indonesia full scope
 Simplified service selection for a customer
 Offering the full service portfolio out of one shop
Rotating Equipment Services | Capital Market Day 2015 | slide 11
Agenda – Rotating Equipment Services
Sulzer Full Potential for RES

Point of Departure

Mission & Strategy

Operational Excellence
Summary
Rotating Equipment Services | Capital Market Day 2015 | slide 12
Sulzer Full Potential: Spare parts growth and
optimization of service branch network
Spare Parts Full Potential
Optimization Service Branch Network
 Optimization across entire spare parts
value chain
 Individual branch action plans per branch
for all product types
 Improved manufacturing and sourcing
 Co-location, right sizing and operational
improvements of service branches for
substantial cost improvements
 Pricing optimization and sales
improvement
 Capability transfer for offering
extensions of branches across products
 Streamlining of organization and
processes
Service full potential
Rotating Equipment Services | Capital Market Day 2015 | Slide 13
Agenda – Rotating Equipment Services
Sulzer Full Potential for RES

Point of Departure

Vision & Strategy

Operational Excellence
Summary
Rotating Equipment Services | Capital Market Day 2015 | slide 14
RES delivery in line with Sulzer vision
One
 Significant cost
savings potential
from functional
integration
 Single contact point
for customers to
Sulzer services
 Reduced
organization
complexity
Focused
Market-oriented
 We are working
together for the
benefit of Sulzer
 Sharing of common
market information
between divisions
 Performance-critical
equipment and
service solutions
 Harmonized frontend, leveraged
relationships
 Technology and
market leadership
 Know how and
expertise leveraging
globally
 Shared KPI’s with
PE
 Combined market
and regional
approach
Rotating Equipment Services | Capital Market Day 2015 | Slide 15
Rotating Equipment Services: Generating value by
providing “more services to more customers”
 Great market proposition with our
combined offering
Be the worldwide preferred
and integrated rotating
equipment service provider
with the best and broadest
technical capabilities
available
 Focusing on operational excellence
 Opportunities to grow
geographically and through
acquisitions
Rotating Equipment Services | Capital Market Day 2015 | slide 16
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.
Rotating Equipment Services | Capital Market Day 2015 | slide 17