EFORE Oyj Capital Markets Day

November 4, 2015

2

Disclaimer

• This document contains statements related to our future business and financial performance and future events or developments involving Efore that may constitute forward-looking statements. Such statements are based on the current expectations and certain assumptions of Efore's management, of which many are beyond Efore’s control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the Risk Management section of the Efore website. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Efore may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Efore neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated

• Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors.

• If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Efore will not be reviewing or updating the material that is contained herein.

4.11.2015 3

Agenda

4.11.2015 4

Markets and technology 4 Alessandro Leopardi Massimo Speciale

CEO introduction and welcome 1 Heikki Viika

EFORE overview 2 Heikki Viika

Financial situation and outlook 5 Riitta Järnstedt

Lunch 11:30 7

Strategic plan 2015 - 2018 3 Heikki Viika

Summary 6 Heikki Viika

EFORE overview

Heikki Viika, CEO

4.11.2015 5

EFORE – The trusted power partner

Efore Plc is an international group specialised in design, development and production of demanding power products.

Efore designs and manufactures cutting edge power conversion products; that offer superior energy efficiency, reliability, more intelligent designs, flexibility and creativity for the telecommunications including networks and broadcasting, industrial, medical, LED lighting and transportation markets.

Efore competences and know-how are embodied in the solutions we provide to our customers: high efficiency and high reliability.

Net Sales 85,3M € (2014) 914 employees Established in 1975 3000 shareholders Quoted on Nasdaq OMX Helsinki

KEY FACTS

Efore worldwide

Efore Plc is headquartered in Espoo, Finland, with major offices in Italy, China and Sweden, production units in China and Tunisia, and Sales and Marketing organizations in Europe, North America and Asia.

Technology and Development

Production

Headquarters

Sales office

Espoo, Finland Stockholm,

Sweden

Castelfidardo, Italy

Tunis, Tunisia

Stroudsburg, USA

Hong Kong, China

Tampere, Finland

Suzhou, China

Industry leading customers globally recognize EFORE Group as a reliable and trusted partner for their power supply applications.

We’re proud of our worldwide customers

DEFENCE INDUSTRIAL DC SYSTEM

DIGITAL POWER TELECOM

LIGHTING

MEDICAL HOUSEHOLD APPLIANCES

4.11.2015 8

Strategic plan 2015 - 2018

Heikki Viika, CEO

4.11.2015 9

Efore mission and vision

4.11.2015 10

EFORE mission and vision

Mission

• Saving energy with efficiency

Vision

• We endeavour to be the trusted power partner

• We deliver reliable products

• We delivery reliably

• Our customers can trust us to fulfill their needs.

• We achieve a sustainable profitability

Strategic plan 2015 – 2018

4.11.2015 11

Our values are

• Customer intimacy – we are approachable at all levels, from individual to individual

• Reliability – our product lasts longer and our delivery is on time

• Solution driven – we focus to fulfil our customers’ needs at high pace (TTM)

• Cost efficiency – we provide our products and services cost efficiently (TCO)

Strategic plan 2015 – 2018

4.11.2015 12

Products and branding

• We have a strong product base

• Clear branding strategy agreed

• Alignment of brand image to business strategy

• Clarity of product naming principles

• Stronger market communication

Brand naming structure

Our brand promise is:

The trusted power partner delivering reliable products, with reliable delivery.

Our customers can trust us to fulfil their needs.

EFORE CORPORATE BRAND

PRODUCT SEGMENTS

PRODUCT FAMILIES

* OPUS to be confirmed as DC systems family branding

*

Efore digital footprint

4.11.2015 14

Efore digital footprint enhancement:

Increased visibility on the internet and social media

ON-LINE INTERACTIVE

PRODUCT CATALOGUE NEW WEBSITE

COMMUNICATION

THROUGH SOCIAL MEDIA

Strategic plan 2015 – 2018

4.11.2015 15

Strategic Priorities 2015 – 2018

• Focus on target markets for correctly directing efforts to right segments & customers through well considered channels

• Review products and services in conjunction with the target market review

• Review processes and IT infrastructure to support the strategy

• Review group structure for cost improvement

• Develop hybrid manufacturing model and review long term strategy in parallel to ensure flexibility

• Secure quality awareness to drive reliable operation

• Organization development, right competences for future growth

Linking action to strategy

Alignment

CUSTOMER FOOTPRINT

MARKET NEEDS

EFORE STRUCTURE

COMPETENCY ALIGNMENT

4.11.2015 16

Strategic plan 2015 – 2018 / cornerstones

4.11.2015 17

Empower competent employees • Review the competencies we have and

competencies we will need to understand the gaps so that we can address those

• Ensure management focus on people to drive competency development and reward as a key priority

• Set up a systematic performance management process to drive the strategic plan implementation

Establish a proactive HR focus to drive development of the organisation and competencies within Efore

HR as a driver for strategic

realignment of the company

Organizational planning, talent development and succession plans

Establish a competency model, assess main competency gaps and prepare an action plan to fill the critical gaps

Set up a systematic performance management process and a rewards/compensation system

Set up recognition and development of High Potential employees

Teach the organisation again to cherish success through

celebrating good achievements

Bring in young blood through a graduate programme in

cooperation with local universities

4.11.2015 18

Strategic plan 2015 – 2018 / cornerstones

4.11.2015 19

Efficient cost base • Optimise overhead costs

• Improve operational speed & efficiency

• Ensure cost efficient manufacturing footprint, revise manufacturing long term strategy

• Review make/buy decisions and models

• Establish an ICT infrastructure that drives efficiency in organisation, harmonisation of ICT

President and CEO

Heikki Viika

Group Finance and

Administration

Riitta Järnstedt

Sales and

Marketing Alessandro Leopardi

Manufacturing John Cahill

Global Sourcing & Procurement

Ruben Tomassoni

Technology and Development

Markku Kukkonen (acting)

Quality and

Environment Markku Kukkonen

Human Resources Alexander Luiga

Communications Sari Jaulas Group EMT

Members

New organisation

• New organisation launched 7th September

• The new organisation flattens the structure by removing a layer through integration of the business units, all positions staffed internally with one exception

4.11.2015 20

Manufacturing strategy

We will apply hybrid manufacturing

strategy for both Suzhou and Tunis

facilities medium term until mid Y2017. 1

We will test hybrid strategy for three

consecutive quarters to allow for the correct

decision – long term strategy to be confirmed

latest 2nd half of Y2016.

2

In line with this hybrid approach we will agree new

product introduction (NPI) strategy to support product

launch. NPI Support Model to be defined by end of

Q4 2015.

3 We will review manufacturing capability

geographies to optimise the support to

business, targeted to be in place by Q1

2016.

4

Global manufacturing strategy will be under an on-

going data led review with customer satisfaction

and business profitability the driving factors. 5

TARGET Efficient and cost effective manufacturing operation

delivering on time value for money

4.11.2015 21

Efore quality excellence roadmap

4.11.2015 22

Optimize

quality

cost

Implement

unified

management

system

Achieve level of

excellence in key

customers’

perception

Improve

quality

management

TARGET World class power

products provider in quality and

environmental aspects

Strategic plan 2015 – 2018 / cornerstones

4.11.2015 23

Evolve game-changing technology • Review products and services to be offered in

the various target markets

• Focus on developing products in the demanding high reliability – high dependability end of market

• Ensure the base technology and platform developments can be utilized across a broad customer base

Strategic plan 2015 – 2018 / cornerstones

4.11.2015 24

Expand on selected markets

• Increase focus on being a full service provider and winning design decisions.

• Focus improving customer intimacy and establish the right sales competencies.

• Maintain existing Tier 1 customers with high focus on securing satisfaction, and target selected new customers.

Markets and technology

Alessandro Leopardi, EVP, Sales and Marketing

Massimo Speciale, Director Product Development

4.11.2015 25

Contents

4.11.2015 26

Market & players 1

EFORE strategic cornerstones 2

Standard & custom 3

Technology & development strength 4

Market and product offering 5

Merchant power supply market

Source: Global Switching Power Supply Industry, Market Analysis, Micro-Tech Consultants

m$

19262 19610 19942 20239 20467 20711

0

5000

10000

15000

20000

25000

2014 2015 2016 2017 2018 2019

Military and aerospace

Transportation

Medical

Industrial andInstrumentation

Networking/telecom/equipment

Computer/office/equipment

Consumer/retail/equipment

LED Lighting

19259 19609 19943 20239 20467 20712

0

5000

10000

15000

20000

25000

2014 2015 2016 2017 2018 2019

Modified &CustomizedStandard

Standard

m$

4.11.2015 27

Top 10 power players and M&A impact

No PS Manufactures Sales m$ Market Share

1 Delta Electronics 3680 18,4%

2 Emerson Network Power 1470 7,3%

3 Lite On technology 1450 7,2%

4 Flextronics 850 4,2%

5 Chicony Power 800 4,0%

6 TDK-Lambda 670 3,3%

7 Murata 650 3,2%

8 FSP Group 645 3,2%

9 AcBel Polytech Inc 644 3,2%

10 Phihong 490 2,4%

2011 2014

No PS Manufactures Sales m$ Market Share

1 Delta Electronics 3741 17,1%

2 Lite On technology 1610 7,3%

3 Artesyn Embedded Tech 1000 4,6%

4 Chicony Power 880 4,0%

5 Salcomp 762 3,5%

6 Flextronics 750 3,4%

7 AcBel Polytech Inc 728 3,3%

8 Mean Well 656 3,0%

9 FSP Group 567 2,6%

10 TDK-Lambda 525 2,4%

4.11.2015 28

Competitive landscape - Current strengths/weaknesses Efore vs. competitors

• Our competitors have the following main advantages due to their larger size

– Well recognized brand

– Larger standard product offering

– Geographic proximity with the customer base (office locations and bigger sales force)

– Scale of new product development

– Economy of scale due to very large volume

BUT

• Same customers are concerned about their dimension especially when the power spend is not big enough to receive the highest level of attention, flexibility and service

• We know how to reach the highest level on Intimacy with our Tier 1 customers

• In 2013, 2014 and 2015 we have been awarded as ”Supplier of the year” from ABB, Ericsson and National Instrument and the selection provided the following motivation: – Superior quality

– Lower than average cost of doing business (TCO)

– On time delivery

– Technology Added Value for their final products to guarantee our customers’ satisfaction

• Long term business with our customers is a clear representation of the HIGH RETURN OF INTIMACY (RofI)

Competitors EFORE

Our customers trust Efore 4.11.2015

Awarded supplier

SUPPLIER OF THE YEAR ABB Substation Automation Products

SUPPLIER OF THE YEAR Ericsson

BEST IN CLASS SUPPLIER National Instruments

30

2013 2014 2015

SUPPLIER OF THE YEAR &

BEST IN CLASS SUPPLIER National Instruments

4.11.2015

Linking action to strategy

Evaluation

TECHNOLOGY TRENDS

MARKET INTELLIGENCE

PRODUCT ROADMAP

GO-TO- MARKET

STRATEGY

4.11.2015 31

Increasing service business

4.11.2015 32

Increase complete power system sales

This allows offering also complete servicing package with annual maintenance and spare part / parts renewal agreement so the customer can secure power to their critical services, e.g., telecom, hospitals, utilities.

This means we establish long term customer value creation.

Increase solutions sales Offer Services to support the customer long term

Leverage long term presence to achieve repeat business for

renewals

Grow profitability through higher system margins

Opus family of DC systems New generation power systems

Build service capabilities in l ine with solutions sales

Service production can be internal or external

Identify renewal / replacement opportunities early and offer easy opportunity to procure

Leverage system sales for increased leverage in margin and volume

Market priority matrix for EFORE C

OM

PAN

Y A

SSES

SMEN

T

Market trend

Competitors Presence

Profitability

Portfolio Proximity

Our skills

Sales Channel

Industrial Segment priority:

1A

Telecom. Segment priority:

1A

Networks Segment priority:

1B

Medical Segment priority:

1B

Lighting Segment priority:

1C

Transport Segment priority:

2

Military Segment priority:

3

MA

RK

ET A

SSES

SMEN

T

4.11.2015 33

Standard & custom strategy

EFORE is a power supply design and manufacturing company that is serving both custom and standard markets.

Working with both business models EFORE will:

1. Use the standard platform as starting point for customization

2. Mitigate the risk

Custom specifications

Non-recurring cost contribution

Specific custom volume

Tier1 Competitor

Direct

Single market destination

CUSTOM

Benchmark market performances

Own development cost

Broader customer base

Wide competition

Distribution

Multiple market destination

STANDARD

4.11.2015 34

Customization/Standardization

EFORE technology roadmap

EFORE technology and product roadmaps are continuously aligned to guarantee the appropriate knowledge to develop the medium short terms strategic platform

INDUSTRY AND MARKET TRENDS

R&D COMMUNITY

SEMICONDUCTOR TECHNOLOGY

ENABLING TECHNOLOGY (e.g. IoT)

TECHNOLOGY DEVELOPMENT ROADMAP

PRODUCT ROADMAPS

4.11.2015 Confidential 35

EFORE technology roadmap

2015 2016 2017 2018 2019

GEN

ERA

L TE

CH

NO

LOG

IES

PO

WER

CO

NV

ERSI

ON

AN

D

DIS

TRIB

UTI

ON

P

LATF

OR

MS

Funded program (5G, Solar)

Bi-directional PSU

Energy-efficient Wireless

Ultra high efficiency

Digital control platform PSU

Cooling, Harsh-Env.,Manuf.

PLD solution

AR

CH

ITEC

TUR

E

Digital control low power

Confidential 4.11.2015

NEW MARKETS

NEW CUSTOMERS

EFORE stretch path

4.11.2015 37

We expand our target market enchancing our technology vectors of differentiation

TECHNOLOGY STRETCH

Solar

DC/AC

Higher efficiency

New topology

New semiconductor

devices

Connectivity

Severe environ-

ment

Health monitoring

EFORE VECTORS OF DIFFERENTIATION

Power density Reliability

Digital control High efficiency

Market and product offering 1/3 Industrial & instrumentation

38

Target Market Market Size Application Today

Industrial

1170 mUSD CAGR 1,1 %

Factory automation Lighting Test & measurement

Led video Wall display

100 mUSD CAGR 11,6 %

Sports Commercial Transportation Advertising

Process industry

800 mUSD CAGR 1,1 %

Utilities

Power generation & distribution

Substation Power plants

Technology Enabler

Configurability Modularity High efficiency Thermal management Multi output design Intelligent Power

Outdoor enclosure Thermal management High reliability System architecture cost optimization

Power system design Intell igent power High efficiency Battery charger Programmability Scalability Remote control Outdoor Shielding

Future Penetration

Oil & gas Semiconductor manufacturing equipment

«Mediatainment» Market evolution

Harsh environment Utilities

Harsh environment Application

Market and product offering 2/3 Medical, telecom and lighting

4.11.2015 39

Target Market Market Size Application Today

Medical 530 mUSD CAGR 2,8 %

Display Operator protection Patient protection Surgical light

Telecom 1900 mUSD CAGR 0 %

Macro cell site Tele & datacom sites Medium/large telecom sites Energy measurement

Lighting 870 mUSD CAGR 13,8 %

Architectural Urban lighting Residential Indoor lighting Outdoor Marine

Technology Enabler

High efficiency Power density Means of protection Modularity Portability

Sealing Outdoor Reliability Programmability Remote controlling Thermal management

Programmability Remote controlling High efficiency Wireless Thermal management Power density

Future Penetration

Point of care (portable) UV light (curing, purification) Imaging

Micro cell site Utilities Oil & Gas

Industrial (high bay) Medical (surgical) Severe environment

Market and product offering 3/3 Military and transportation

4.11.2015 40

Target market Market size Application today

Military, Defence & Security

680 mUSD CAGR 2,9 %

Secure networks Tetra Vehicles

Transportation 290 mUSD CAGR 6,2 %

Substation Signalling Communication network

Technology enabler

Power system design Intelligent power High efficiency Battery charger Programmability Scalability Remote control Outdoor Shielding

Future penetration

Weapon & communication system

Lighting & inflight Entertainment (aircraft, train) Infrastructure - airport runway

Financial situation and outlook

Riitta Järnstedt, CFO

4.11.2015 41

Financial figures

*APAC: Asia-Pacif. / EMEA: Europe, Middle East and Africa / Americas: North, Central and South America

53% 47%

Telecommunication Industrial

1-9 2015 Net sales by sector

39%

28%

14%

19%

EMEA APAC Americas Finland

1-9 2015 Net sales by areas*

Key indicators, EUR million 1-9/2015 FY/2014 FY/2013

Net sales 70,1 85,3 74,5

Telecommunication sector 37,1 46,0 -

Industrial sector 33,0 39,3 -

Results from operating activities without one-time items

0,7 0,1 -4,3

Results from operating activities 0,4 -2 -4,5

Results before taxes -0,4 -3,1 -4,8

Net result -0,6 -2,6 -5

Earnings per share, EUR -0,01 -0,05 -0,12

Solvency ratio, % 37,6 38,1 39,7

Gearing, % 4,1 9 14,3

Cash flow from business operations 4,6 3,8 3,2

4.11.2015

We will grow through new technology, new customer acquisition and serving our current customers

4.11.2015 43

37%

16%

47%

Sales growth 2015-2018 CAGR 10% p.a.

Existing customers, existing technology New customers, existing technology

New technology, existing sales channels

• Maintain existing Tier 1 customers and target selected new customers from the targeted segments

• Enhance technology strech into smart power, demanding environments and service provision

Where will the profitability growth come from?

0%

2%

4%

6%

8%

10%

12%

Current profitability Efficient cost base Expanding selectedmarkets

Evolving gamechanging technology

EBIT

-%

2018

2015

4.11.2015 44

Improving our Net Working Capital structure

4.11.2015 45

Receivables Inventory 2015

Payables C2C

Inventory 2018

Make the business self-financing

Summary

Heikki Viika

4.11.2015 46

Timeline of major milestones resulted from turnaround actions

4.11.2015 47

- Riitta Järnstedt appointed new CFO

- Heikki Viika appointed new CEO

- Major part of PCB assembly manufacturing transferred to an EMS partner

- CFO Riitta Järnstedt appointed also interim CEO

November 2014 December 2014 March 2015 April 2015 May 2015

July 2015 August 2015 September2015

...

2015 2014

June 2015 - New CEO joined

the company

- Start preparation of new strategy

- Cost improvement programme initiated in China and Finland

- Savings programme initiated in Italy

- PCB assembly manufacturing transfer to an EMS partner finalised

- Manufacturing process in Suzhou reorganized

- New strategy published

- Contract signed with four sales agency chains to strengthen sales force in USA

October2015

- Implementation of new organization structure

- Changes in Executive Management Team

Going forward

- Strong execution of strategy with regular follow up and review of its impact

Conclusions

4.11.2015 48

An updated vision created for the company: The trusted power partner

• Four strategic cornerstones encapsulate the strategy

• Growth is aimed through

– Securing current large accounts at current high level or increasing the volumes

– Capturing selected new major accounts through planned approach

– Opening new sales channels including Internet

– Bringing new technologies to the market

• Improvements in profitability to reach 10% EBIT by end of

planning period are aimed through optimising overhead costs,

efficiency improvements in manufacturing and product

development, and ensuring a competitive materials cost base

• We are aiming at energising the company through

management commitment to leadership, empowering our

employees and ensuring we have the right competencies and

rewards system for the future

Thank you for your attention

HEIKKI VIIKA