Acquisition of Lafert S.p.A. Sumitomo Heavy Industries, Ltd. - - PowerPoint PPT Presentation

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Acquisition of Lafert S.p.A. Sumitomo Heavy Industries, Ltd. - - PowerPoint PPT Presentation

Acquisition of Lafert S.p.A. Sumitomo Heavy Industries, Ltd. Director, Executive Vice President General Manager, Power Transmission & Controls Group Toshiharu Tanaka 25 th May 2018 1 Ambition of PTC Group and objectives of the acquisition


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Acquisition of Lafert S.p.A.

Sumitomo Heavy Industries, Ltd.

Director, Executive Vice President General Manager, Power Transmission & Controls Group

Toshiharu Tanaka 25th May 2018

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1) Target of PTC Group

 Aim for 200 billion yen revenue (1.5 billion EUR), focusing especially in overseas market, including inorganic growth  Robotics/Positioning, Material Handling and Food & Beverage machinery industries in particular are expected to grow, and are defined as priority fields for our business growth.

2) Objectives of the acquisition of Lafert

 SHI will be able to reinforce its strategic position in the electric motors industry and machineries electrification, in the first instance, in Europe, which leads both technologies and market trends in the industries above.  Both SHI and Lafert are expected to expand the product portfolio and to serve a wider range of customers with a more comprehensive set of solutions.  SHI plans to utilize the technologies derived from Lafert’s R&D activities into its products, as well as the supply chains associated.

Ambition of PTC Group and objectives of the acquisition

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FY2016 Actual

Target

98.6 115

200

Organic growth more than market growth rate

Inorganic growth

Revenue, JPY billion FY2019

Plan

Mid-Term Management Plan 2019

Overseas Domestic

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Milan San Dona di Piave Veneto Italy

About Lafert S.p.A.

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Date of establishment : 25th October 1962 Address of HQ : San Dona di Piave, Treviso, Veneto, Italy Business category : Sales & Manufacturing of electrical motors and drivers Listed/Unlisted : Unlisted Revenue : 149.2 Million EUR (FY 2017), EBITDA ratio: above 10%

  • No. of Employees

: 796 (As of September, 2017) Factories : Italy;4, Slovenia, China Sales offices : Germany, UK, France, Spain, Australia, Singapore

50 100 150 200 2013 2014 2015 2016 2017 Revenue (million EUR)

Lafert Business Performance

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SLIDE 4

32% 16% 26% 11% 5% 10%

By application

Industrial Machines Material Handling HVAC/R Air Technology Lifting Renewable Energy

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Based on sales result in FY 2016

Revenue by Region, Product and application

27% 46% 17% 10%

By region

Italy Rest of Europe North America Rest of the World 51% 17% 30% 2%

By product

AC Induction Motors PM Synchronous Motors Servo Motors & Drivers Other Products

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Lafert Electromotorji (Slovenia) Lafert Servo Drives Lafert S.p.A. Lafert Suzhou (China) Lafert Servo Motors ICME

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Factories and sales offices

:Factory :Sales offices

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High Efficiency PM motors Asynchronous motors Brake motors

IE4/IE5 class PM motors IE4/IE5 class PM motors VFD mounted PM motors VFD mounted PM motors DD motors for fan DD motors for fan IE2/IE3 High Eff. motors IE2/IE3 High Eff. motors 1-phase motors 1-phase motors Customized motors Customized motors Brake motors Brake motors

Servo motors Servo drivers Lift motors

Lift motors Lift motors Servo drivers Servo drivers Battery powered drivers Battery powered drivers Servo motors Servo motors Torque motors Torque motors

Product lineup

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Leading technologies of energy efficiency

Advanced technologies for Super-

Premium Efficiency Class (IE4/IE5)

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Compact high performance Servo Motors

Sophisticated technologies to realize both

high performance and downsizing.

Technologies & products covering a wide

range of industries

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High and flexible customization capability

Customization capability to fit variety

  • f industrial applications and customer

requirements

IE4/IE5 class PM motors IE4/IE5 class PM motors Customized motors Customized motors Servo motors Servo motors

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Competence of Lafert

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SLIDE 8

Software / Network Geared Motors High-Precision Gears Servo motors VFDs Servo drivers Decentralized products Controllers / Visualization 0.01kW 100kW 1kW 10kW Asynchronous motors Control / Software

  • Partnership with internal and external

resources

With Lafert’s products, PTC expands its portfolio into electrical and control fields.

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A highly complementary combination

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F&B machinery Robotics, Positioning Pump, Fan, Compressor Energy Material Handling

IE4/IE5 Class PM motors & High-eff. Gear Motors Integrated zero-backlash servo actuators Compact servo gear motors (Ex. For AGV) 9

PTC and Lafert have highly complementary technologies and products which will bring competitive solutions with unique sales points.

Synergies in target industries

Energy Efficiency Automation

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PTC Lefert

Ex-rate 1EUR=130JPY 9 months of Lafert FY18 sales will be consolidated.

Growth target after acquisition

98.6

200.0

115.0

(Original plan)

117.0 109.4 15.0 22.0

FY16 Actual Target FY19 Plan FY17 Actual FY18 Forecast

132.0 137.0 Revenue (JPY billion)

Inorganic growth (e.g. M&A, alliances, etc.) Organic growth more than market

Lafert

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2018 25th May : Signing of Share Purchase Agreement By end of June : Closing (Scheduled) July-December : PMI (Post Merger Integration) (Scheduled)

Time line

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All forward-looking statements regarding the company’s future performance are based on information currently available to Sumitomo Heavy Industries and determined subjectively. Future performance is not guaranteed and all information related to future performance contained herein is subject to changes in business environments.