Introduction

to Danfoss
 Danfoss engineers technologies that enable the world of
tomorrow to do more with less. We meet the growing
need for infrastructure, food supply, energy efficiency
and climate-friendly solutions

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 Trend Danfoss
World population is moving We help build the infrastructure
into cities, creating a huge in a sustainable and efficient way
demand for infrastructure

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 Infrastructure

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 Trend Danfoss
World population is growing We help meet this need by
and there is a constant need improving farming productivity
for more and better food and keeping food cold and fresh

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 Food

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 Trend Danfoss
Global energy demand is rising We help get more out of less with
as population grows and our energy-efficient technologies
standards of living increase

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 Energy

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 Trend
Global emissions are rising,
however, development can
be turned around and air
pollution limited
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Danfoss
We help lower emissions and
increase human well being through
our innovative technologies
 Climate

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 Danfoss facts

Employees 23,400
Worldwide sales more than 100 countries
Factories 61 in 20 countries
Top three markets USA, China and Germany
Ownership Privately held
Headquarters Nordborg, Denmark

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 Key financials (2015)

Net sales 38.0 bn DKK 5.1 bn EUR

EBIT 4.1 bn DKK 549 m EUR
Free cash flow 3.4 bn DKK 456 m EUR

Net sales EBIT

bn DKK the last five years
bn DKK the last five years
Gains from divestments

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 Our global markets
Share of net sales per region 2015

North America Eastern Europe

24% 9%

Western Europe
39%

Latin America
5%
Africa/Middle East Asia-Pacific
3% 20%

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 Our organization
Executive Committee
Kim Fausing Niels B. Christiansen Jesper V. Christensen
Executive Vice President & COO President & CEO Executive Vice President & CFO

Global Corporate
Services Functions

Danfoss Danfoss Danfoss Danfoss

Power Solutions Cooling Drives Heating

Eric Alström Jürgen Fischer Vesa Laisi Lars Tveen

Segment President Segment President Segment President Segment President

Hydrostatics Refrigeration & Power Electronics Residential Heating

Air Conditioning Controls
Work Function Vacon District Energy
Commercial Compressors
Controls Commercial Controls
Industry Business

Heat Exchangers

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 Strategy journey – Core & Clear

2010- 2014/2015 2016 -

Journey starts Results Journey continues

• Invest in core business • Record-high sales and • Continue improving

areas and divest non-core profit
activities • Double-digit improvement
• Optimize business in productivity per year
and reduce complexity • Best-in-class quality and
• Sharpen value for on-time deliveries
customers through • Leading positions
stronger focus on quality, strengthened (number
reliability and innovation one or two)
• Motivate employees • High employee
to support changes and engagement at 76
perform their best measured in 2015
(scale: 1-100)
business
• Expand Danfoss’ global
position and further
accelerate profitable
growth
• Invest in innovation,
branding and market
growth pockets
• Acquire new technologies
and activities

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 Innovation that makes a difference

• Heavy investment in innovation – 4.2% of net sales in 2015

• Customer involvement from start to finish
• 50 product lines that meet needs and make a difference
• On average, we are granted a new patent every day

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 Committed employees

• 23,400 employees dedicated to engineering solutions that make

a difference to people and businesses worldwide
• High employee engagement (2015: 76 on 1-100 scale)

Our behavior
We build our business on We are innovative in our We are global and embrace We treasure sustainable
trust and integrity ambition to exceed expectations diversity results

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 Employees worldwide

North Eastern
3,410 Europe 3,910
America

Western
Europe 9,540

Asia
Latin – Pacific 5,170
America 1, 200
Africa
– Middle East 195

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 Our approach to sustainability

• Follow the UN Global Compact

• Guidelines, training and programs that govern our behavior
• Code of Conduct for suppliers and regular audits to verify compliance
• Climate strategy: by 2030, Danfoss will be using half as much energy as in
2007 and this energy will emit half as much CO2

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 Our history

• Founded in 1933 by Mads Clausen in Nordborg, Denmark

• Grown from a solo enterprise into a world-leader
• Made possible by clear focus on innovative engineering and early
entry on emerging markets

Cooling Heating Power Solutions Drives

First product was Danfoss invented one of Entered hydraulics business First company to mass-
an expansion valve the first radiator with orbit motor for produce variable speed
for refrigeration thermostats in the world agricultural and construction drives for controlling motors
systems (1933) (1943) machines (1964) (1968)

Later the hermetic

compressor for
refrigerators and
freezers followed
(1952)

Today, we are one of the world’s leading producers of these and many other products

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