LOGSTORExport strategy

Jørgen Ægidius

VP Sales, District Energy

November 2015

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Content

1. LOGSTOR Vision

2. Facts and figures about LOGSTOR

3. Product range – system sales

4. LOGSTOR sales organization

5. Competitive situation

6. Market overview

7. Competitive situation

8. LOGSTOR Value proposition

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Who We Are & Our Vision

To make the World's energy supply more efficient and reduce the global energy loss with leading insulation products, improving the environment for the populations in all continents.

The world’s leading

manufacturer of pre-

insulated pipes for

energy efficient

transportation of

gases and liquids for

district energy.

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Our Focus

Oil & Gas

Industry

District energy – heating & cooling

Sales

Production

Distributor

Mobile Plant

Joint venture

8 plants in Europe, 1 in Asia, 2 mobile production units

14 Sales units

Joint ventures in China and Dubai

Distributors in more than 30 countries

A result of several mergers and aquisitions

More than 5,000 km pre-insulated pipes every year

More than 185,000 km LOGSTOR pipe supplied to date

Headquarters in Denmark 1,500 employees Annual turnover > 250 MEUR Owner: Triton Fund III

The LOGSTOR Group & our global presence

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Integrated Solutions & Systems

• One integrated solution for the whole pipe system

• Designed to minimize installation & operating costs

• Optimum insulation ensures low operating costs

Reduces heat loss

Improve energy efficiency

Reduces CO2 emissions

Reduce maintenance costs

• Service before, during and after installation

• Quality, durability and lifetime beyond 30 years

• +50 years of experience inventing pre-insulated pipe technology

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The global leader in high quality pre-insulated solutions

• Product range and capacity

• Pre-insulated pipesystems for temperatures from: -200 to +250°C

Straight pipes, from DN 20 to DN1200

– More than 10,000 km

• Flexible pipes, from DN15 to DN110

– More than 3,000 km

• Joints (mechanical, shrinkable & weldable)

– More than 1,000,000 units

• Pre-insulated fittings

– More than 250,000 units

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Sales organization,

District Energy &

Industry

Mats Gärdfors, EVPCommercial, District Energy & Industry

Tobias LangerRegion Central

Stefano De SalvatoreSweden

Norway

Luca BovolentaRegion South

Paweł DykowskiDemand Planning

GermanyAustriaBenelux

ItalyFrance

Switzerland

Christian Schrøder

Denmark

UK

Troels HansenService

Jesper Frank,Industry

Mats GärdforsActing

Region CEE

Baltics

Lithuania

Finland

Poland

Romania/Balkan

Bulgaria

Jorgen Aegidius

Export & Distribution

Jesper FrankMarketing

CVM

Anne Maj Overgaard

Customer Service

and Technical Design

Department

Customer Service

Sweden

Customer Service

Denmark

Customer Service

(PL)

Multilingual team

Process CS

Anette Jensen

RoWDistributors &

District Cooling

Technical Design Department

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Distributors overview

LOGSTOR Distributors Distributor client no. Daily contact ASM

Market Company name SAP

Ireland IE Noel Walshe Dublin 10840 Noel Walshe CHJ

Kosovo XK K-WE Pristina 16149 Arben Jashari JAE

Latvia LV Sia Bek Riga 10364 Ivars Bekmanis TOL

Macedonia MK Energo Sistem DOO Skopje Boban Stojanovski AOB

Norway NO SGP Varmeteknikk Oslo 14269 Jo Helge Gilje CHJ

Oman OM Shamel Moscat 10360 Avinash JAE

Serbia RS Termonet Belgrade 14549 Branko Crncevic AOB

Serbia RS Energy Pro Novi Sad 16739 Aleksandar Milinski AOB

Slovakia SK Tenza Nitra 13905 Marta Babikova JAE

Slovenia SI ESTA Ljubliana 10365 Matija Rustja AOB

Spain & Portugal ES Efiterm Madrid 16699 Daniel Herdin TOL

Turkey TR Bilek Energy Fethia 16299 Haluk Bilek JAE

Ukraine UA ITRES Kiev 16900 Boris Bondar NIT

LOGSTOR Distributors Distributor client no. Daily contact ASM

Market Company name SAP

Ireland IE Noel Walshe Dublin 10840 Noel Walshe CHJ

Kosovo XK K-WE Pristina 16149 Arben Jashari JAE

Latvia LV Sia Bek Riga 10364 Ivars Bekmanis TOL

Macedonia MK Energo Sistem DOO Skopje Boban Stojanovski AOB

Norway NO SGP Varmeteknikk Oslo 14269 Jo Helge Gilje CHJ

Oman OM Shamel Moscat 10360 Avinash JAE

Serbia RS Termonet Belgrade 14549 Branko Crncevic AOB

Serbia RS Energy Pro Novi Sad 16739 Aleksandar Milinski AOB

Slovakia SK Tenza Nitra 13905 Marta Babikova JAE

Slovenia SI ESTA Ljubliana 10365 Matija Rustja AOB

Spain & Portugal ES Efiterm Madrid 16699 Daniel Herdin TOL

Turkey TR Bilek Energy Fethia 16299 Haluk Bilek JAE

Ukraine UA ITRES Kiev 16900 Boris Bondar NIT

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Distributors responsibility

• In general long term cooperation with distributors some > 20 years

• Distributor markets are all project markets, which are financed by public funding, EU, EBRD, KfW

• All projects are out for public tendering => very competitive markets

• Distributor is responsible for all sales activity and communication with the clients

• Highly important to get into the spec’s differentiate to competitors

• Convince client to give priority to Total Cost of Ownership in tender evaluation

• Preparation and submission of tenders to clients in the market is

• Annual agreement on sales target, price level (discount on gross price list)

• For the major projects a close dialogue between ASM and distributor

• Distributor is supported by ASM sales phase and by CS organization in execution phase

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The market & players in preinsulated pipesystems for District

Energy

• Market for preinsulated pipesystems for District Energy approx. 750 MEUR

• Global Players – a handful

• Regional players – 2-3 handfuls, a few examples

• Local players - numerous

+200 others

• End User • Consulting Engineer• Contractors

• Main Focus:

1. Price

2. Delivery

performance

3. Product Quality,

min. compliance

w. standards

• Main Focus:

1. TCO

2. Product Quality,

best in class

3. Price

4. Delivery

Performance

• Main Focus:

1. Product Quality,

best in class

2. TCO

3. Price

4. Delivery

Performance

Market overview, Customer Segments

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General sales strategy

• Gain profitable marketshare – in a flat market (at present)

• Value based sales

– Lowest Total Cost of Ownership, reduction of energy loss and emissions, ROI tools

– Effective installation and maintenance, design & joints

– Secure technical lifetime, surveillance systems & services

– Customer excellence, delivery service, accountability

• Differentiation

Customer satisfaction

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Total Cost of Ownership / Lifetime costs

1. Investment costs (Non-recurrent costs)

– Purchase costs, components

– Installation costs

– Costs of planning and commissioning

2. Operating costs (annual costs)

– Costs of energy & heat loss

– Costs of maintenance

– Costs of repairs

– Costs of poor quality

3. Total costs of the solution

Investment Cost

Operating Costs

30 years

Acknowledged to include energy savings in evaluation of tenders in

Scandinavian markets – but still neglected in most other markets

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LOGSTOR Value Proposition

Lowest total cost of operation

• Insulation Technologies

• Lifetime Insulation protection

• Integrated Solutions

Effective installation

• LOGSTOR Joints

• LOGSTOR Design Services

• Documentation & Certification

Longest life time

• Surveillance

• LOGSTOR Calculator

• LOGSTOR Services

Customer Excellence

• Responsiveness

• Transport & Delivery Accuracy

• Accountability

Evaluation of the Value Propositions

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1

2

3

4

5

6

7

8

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VP1:Minimum heat loss

VP2: Insulation technology

VP3: Optimum Solution

VP 4:Joint system

VP5: Optimum Design

VP 6: Documentation

VP7: Surveillance

VP8: Software & Measuring

VP9: Service offering

VP10: Responsiveness

VP 11: Transportation

VP 12: Customer service

Market or clients requirements / LOGSTOR & competitor performance

LOGSTOR

Close the gaps

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Entering new markets – quite traditional:• Normally it starts with opportunistic selling

• Market research

– Accessible market value, competition, trends/macro economics, projects in pipeline etc.

• Participation in export promotion events, DBDH and others

• Local partner search

• Evt. strategic partnerships with DK/EU companies

• Presentation and approval of business plan

• Training of local rep

• Sales meetings, quotations follow up

• Arrange seminars for target clients and designers

• Participation in relevant exhibitions

• System export sales – we do not have the structure and driver - yet

• Mobile production vs. permanent production set up if > 50 – 100 MDKK

• Export focus areas outside core European markets: TR, UA, NA

• And then only remains to:

Thank you for

your attention !

jae@logstor.com

www.logstor.com

•20/11/2015