K r i s t e r R o s e n d a h l G e n e r a l M a n a g e r L o g i s t i c s

D e p u t y P l a n t M a n a g e r U m e å

K O M AT S U F O R E S T

Let me present to you, Komatsu Forest!

”Our vision is to be an indispensable partner for professional forest machine owners”

Ø  Founded in 1961 (Umeå Mekaniska) Ø  Owned by Komatsu Ltd (Japan) 2004 Ø  Komatsu Forest 1600 employees (480 in Umeå) Ø  Factories in Umeå & Chattanoga, USA Ø  Net sales EUR 435 million in 2014

Komatsu Forest

Umeå, Sweden HQ, R/D, Assembly Arlanda, Sweden

Spare parts

Wheeled harvesters (5 models) produced in Umeå

Harvester heads (10 models) produced in Umeå

Wheeled Forwarders (5 models)

produced in Umeå

Komatsu Way Office

§  Komatsu Forest develops, manufactures forest machines and attachments, we are a pioneer in the area of mechanized logging

§  We are one of the world's largest manufacturers of forest machines and operate in all important forestry markets

§  We have an extensive global service and after sales network

Tracked harvesters produced in Chattanoga, USA

The forwarder loads the logs produced by the harvester and transports them to the roadside, then unloads and sorted for transport by road.

The harvester fells, delimbs and bucks the trees into the desired lengths.

Our forest machines use CTL-method

q  The machines are used in almost all types of forest terrain. Normal off-road driving speed is 5 km/h.

q  Operates up to 6,000 hours/year. Productivity varies between 100 and 200 trees/hour.

Cut-to-length method (CTL) It´s a mechanized harvesting system in which trees are delimbed and cut to length directly at the tree stump.

Komatsu Forest strives to develop the forest machines of tomorrow. Our efforts revolve around three core values:

§  Passion for technology We have the technological expertise required to create forest machines for the most demanding conditions.

§  Business insight We work in close concert with our customers and are familiar with their day-to-day business, always our customers in focus.

§  Forest focus Focusing on the forest is central to our operations and provides a strong foundation together with our customers.

These values can be summarised in FORESTRY QUALITY this is the promise we make to our customers!

Komatsu Forest - a company synonymous with quality

Sweden facts: q  57% of Sweden's total land area is covered by forest – one of our most vital industry q  Forest industry is 12% of Sweden's export and 11% of labor in Swedish industry q  About 40% yearly increase of forest in Sweden (130M m³ yearly growth, 90M m³ yearly cuttings)

Proportion of forest from the total land area

Source: SLU, EFI

Future possibilities……. Long-term forecast for paper and cardboard demand by region to 2050

Did you know that…

§  China and Southeast Asia represent a large share of future paper consumption.

§  The increased demand for cardboard and packaging is mostly due to the expansion of e-commerce.

§  Demand for soft paper will increase a lot due to population growth world wide.

§  The demand for total forest products will increase over the coming decades, therefor demands will also increase for forest machines coming years.

Environmental commitment and transport Ø  We strive to only contract transporters that are certified in the environmental area.

Ø  Komatsu Forest received Umeå Municipality's Environmental Award 2014. “The company was the first in the forest segment with the new fuel-efficient machine engines”

Ø  Environmentally friendly transport solutions is one of our ambitions. In 2015 we change our transport concept from Central Europe to the factory in Umeå. Incoming shipments are now hubbed in Hamburg and transported by boat from Lübeck/Germany to the harbor in Holmsund/Umeå.

Ferry connection, shipments in and out from factory

Deliveries from factory in Umeå: Ø  22% of our delivered machines were transported by todays ferry from Umeå to Vaasa.

Deliveries from Finland to the factory in Umeå: Ø  18% of all incoming goods for production is supplied by key suppliers located in Finland.

All shipments from Finland use the ferry connection between Vaasa and Umeå.

Inbound Outbound

Finland

FI/RU/BC

Midway Alignment and the Bothnian Corridor and Komatsu Forest

The commitment and involvement in the Midway Alliance project is an investment in the future for Komatsu Forest!

Future transport needs:

Ø  Deliver more machines by train and boat. Today, about 70% of our products are exported.

Ø  A new ferry between Umeå-Vaasa gives opportunity to continuously be more competitive and grow as a company, a vital condition for all concerned companies within Umeå and Vaasa region.

Future investment, make it happen!

Umeå-Vaasa-Vaasa-Umeå

Thank you! krister.rosendahl@komatsuforest.com

Global forest resources

Sources: FAO, GRID-Arendal/UNEP, Skogsindustrierna, Pöyry, Thünen-Institute for International Forestry and Forest Economics

25% of the world's forest area

Europe

17% of the world's forest area

Africa

17% of the world's forest area

North America/ Central America

21% of the world's forest area South America

15% of the world's forest area

Asia

5% of the world's forest area

Oceania

Did you know that…

q  Europe is home to 25% of the world's forest area, and is also our largest market

q  It is followed by South America, where Brazil is our largest market

q  Africa has a big share of the world's forest area, the forestry is not yet mechanised

Source: SLU, EFI

New products to get environmental sustainability

Sweden facts: ü  80% of Sweden's land area is covered by forest – one of our most vital industry

ü  Forest industry is 12% of Sweden's export and 11% of labor in Swedish industry

ü  30% increase of forest yearly (130M m³ yearly growth, 90M m³ yearly cuttings)

ü  2.0% of the total round wood production in the World

ü  6.4% of the total sawn softwood production in the World

ü  7.3% of the total pulp production in the World

Supported area