1. Driving towards a Clean, Safe and Sustainable Welding Industry
June, 2011
Strength Through Cooperation

2. Who We Are and What We Do?
ESAB is a world leading company in advanced welding and cutting solutions
ESAB has a product and geographical spread that is unrivalled and occupies a leading position in the majority of the worlds markets. ESAB has sales representation covering five continents. ESAB has over 30 manufacturing locations serving the global business
ESAB has four product Divisions, Consumables, Equipment, Automation and Cutting

3. Our Vision & Values Our Vision Values
“To be the global leader, to be our customers’ preferred partner and the global authority in welding and cutting.”
Values
Integrity
Experience
Innovation
Partnership
“Our brand is at the heart of everything that we do.” Michael Foster, CEO ESAB

4. History & Operation

5. Over a Hundred Years of Experience
From the company’s foundation in Sweden in 1904 and the development of the world’s first welding electrode, ESAB has grown into a global leader with sales exceeding $2 billion annually.

6. ESAB’s Parent Company
Charter International plc, headquartered in Ireland, owns (through a number of intermediate companies) two international engineering businesses, one focused on welding, cutting and automation (‘ESAB’), and the other on air and gas handling (‘Howden’).

7. Market Profile – Welding & Cutting 2010: About $13 Billion Globally
By end user segment
Energy
Oil, gas & processes %
Power %
Petrochemicals %
Pipelines & pipe mills %
Total energy %
Notes: 1 The global welding and cutting market in which ESAB operates excludes welding robots and automation products.

8. Global Presence

9. Manufacturing Footprint Worldwide
St Petersburg
Laxå
Perstorp
Opole
Katowice
Karben
Vamberk
Mór
Traverse City
Ithiman
Ashtabula
Terni
Hanover
Weihai
Changwon
Florence
Zhangjiagang
Wuxi (Romar)
Taratala
Shanghai (Malu)
Monterrey
Khardah, Calcutta
Nagpur
Irungattukotai
Ambattur, Chennai
Singapore (Romar)
Jakarta
Belo Horizonte
Pompeya
St Luis
Chascomus
Welding consumables factories
Cutting systems factories
Cutting and welding equipment factory
Welding equipment factories
Welding equipment & consumables factory

10. 15 Process Centers and 5 Consumable R&D Centers
Sweden
Brazil
Argentina
Spain
UAE
Germany
Russia
China
Singapore
France
Existing Process Centre
USA
Poland
Czech Rebulic UK
India
Gothenburg
Hanover
Zhang Jiagang
Chennai
Belo Horizonte

11. Global Presence for Local Customers

12. EHS & Sustainability

13. ESAB Strategic Goal Leader in EHS & Quality Customer focus, globally
Effective people in a performance culture
Establish global market leadership
Financial stability
Environmental, Health & Safety is defined as the no 1 goal in ESAB. The reason for this is our strong conviction that business will not be long term sustainable if we fail to keep our employees safe and minimize our negative impact on the environment.

14. Sustainable Vision
Our sustainability vision for ESAB is a company that:
has an impact on the environment that does not contribute to biosphere deterioration
manages human resources in a way that makes our intellectual capital continuously grow
contributes to local and global economy development
makes flawless products, needed by society and safe to use
delivers financial results that satisfies shareholders over business cycles
To enable sustainable development, we have perfect ways of process controls and waste elimination in all our production and operations.

15. If you remove waste, you focus on adding value
The ESAB Way of Lean
What is Lean??
The continuous removal of all types of waste from all parts of the business.
If you remove waste, you focus on adding value

16. Long-term Lean Strategy
Lean Manufacturing
Lean Enterprise
Business Excellence

17. We keep the promises we make and improve what we do the ESAB Way!

18. What is the ESAB Way?
The ESAB Way is Strength through Cooperation supported by the established principles that are the decision making behaviors and actions required to support the ESAB Vision, Brand, and Values.
The “ESAB Way” is the guideline that leads us to the accomplishment of our objectives.
There are 12 principles of the ESAB Way, supporting our Brand and giving us guidance in our daily operation.

19. The ESAB Way Principles – Supporting the ESAB Brand
We strive through our daily activity to continuously improve the safety of our working environment.
We understand our customer needs and make realistic commitments to meet them.
Corporate planning through the Policy Deployment Process will set common goals and communicate our business aims.
We manage with a long term view whilst meeting our short term commitments.
We will invest in, and build the capability of our people and organization to deliver our vision.
We want our people to know what is expected of them. Their performance is reviewed and development is encouraged.
Our processes are aligned against the principles of pull and smoothing, aligned to customer based takt time.
We build quality into our processes to avoid creating or passing on defects.
We use standardization as our foundation for continuous improvements supported by visual management to expose problems and highlight opportunities.
We “Go and See” to learn and to understand our opportunities for improvements.
We share best practice and communicate our ideas to eliminate waste across the value chain.
All our decisions are data driven and guided by our principles.
With acknowledgement to Unipart for help developing the ‘how’ of the ESAB way

20. Customer Focus – At the Core of Our Brand
Customer Focus – We must understand the needs of our customer, strive to find innovative solutions for them and be recognized as industry leaders.
Product Innovation – Our product innovation process must be market led and help build our authority brand image.
Operational excellence – We must be flexible and reliable, delivering consistent quality at the right cost – striving for best in class cost in the industry.
Customer Focus – We must understand the needs of our customer, strive to find innovative solutions for them and be recognized as industry leaders.
Product Innovation – Our product innovation process must be market led and help build our authority brand image. This can go beyond simply innovating new products, to developing leading edge product service offers
Operational excellence – We must be flexible and reliable, delivering consistent quality at the right cost – striving for best in class cost in the industry.
Key factors identified by the Customer Focus Project team, which are critical to the delivery of successful customer focus at ESAB:
Becoming easy to deal with
Segmentation
Channel development
Prioritizing customer
Customer relationship management
Measuring customer focus

21. Technology is Productivity

22. Our History
1900
1920
1960
1980
1940
2000
2000s
1994
ESAB acquired by Charter Plc
1962
Cutting facility moved to Rodheim
1904
ESAB Founded
1931
Replaced dipped electrodes with extruded
Began shift from services provider to manufacturer
1942
Established Laxa factory
1938
Acquired Kjellberg-Eberle in Frankfurt (cutting)
1970s
Decline of industries in Europe led ESAB into serious financial difficulties
1971
First sales office opened in USA in Detroit, in collaboration with Sandvik
1975
Cutting facility moved from Rodheim to Karben, Germany
1980s
Acquisition spree. During this period ESAB acquired
26 companies in Europe + USA, and divested 5
1984
Acquisition of Airco, opening of office in Chicago
1989
Acquisitions of L-Tec and Alloy Rods in the US
ca. 1991
Following the fall Eskilson proposes to acquire manufacturing facilities in Hungary, Poland and Czech Republic
1990s
Acquisitions of OZAS, Baildon and FERSAR in Europe
Acquisition of CONARCO in South America
Acquisition of Alcotec in USA
By the time of Oscar's death, ESAB had subsidiaries in Finland, Poland, Germany, the Netherlands, Belgium, France and UK
Rapid growth and expansion. Started journey from multi-national to global company
2000s
Significant growth of ESAB India and South-America
2006/08
ESAB China: Zhangjiagang and Weihai factories open
The long term history of ESAB in the welding industry - with the aim of putting ESAB in historical context and show its strong heritage, acknowledge the depth and history.
ESAB founded 1904 inventing the electrode especially for boiler applications.
During the 30-40’s focused on setting up sales companies,
During the early part of the century ESAB (or companies that ESAB later bought) invented the first nickel and stainless electrodes, developed the cored wire process (put the flux on the inside!) and then the SAW process to get higher weld deposition rates. Union Carbide, based in Florence, South Carolina invented the plasma cutting process as well as the steel scarfing process.
During the 60’s, 70’s and 80’s ESAB acquired a number of welding companies, many with strong domestic positions, mostly driven by local production capacity many in the then emerging Eastern block economies – check the dates of the acquisitions
These companies were managed as independent, quite autonomous businesses, and were quite successful in their own right.
[On a time line, get historical dump from 2004 copy of Svetsaren, also historical tuff from Steve Engel (Union Carbide / Florence) and and Dan Spackman (Alloy Rods / Hanover). Place on a timeline with pictures.]

23. Our Innovations
1900
1920
1960
1980
1940
2000
2010
New advanced consumables & equipment innovations
1904
Electrode (MMA)
1937
Unionmelt - sub arc welding
1938
Gravity Welding
1944
Heliarc (TIG)
1947
MIG/MAG
1955
Plasma Cutting
1960
Flux-Cored Wire
1979
Narrow Gap Welding
1982
LMA Electrodes (Low Moisture Absorption)
1989
Adaptive Butt Welding
Marathon Pac
1995
High Speed Cored Wire
1996
Friction Stir Welding
1997
Laser Bevel Cutting
2004
Aristorod
2010
High speed sub arc welding
2007
Hybrid Laser Arc Welding
The long term history of ESAB in the welding industry - with the aim of putting ESAB in historical context and show its strong heritage, acknowledge the depth and history.
ESAB founded 1904 inventing the electrode especially for boiler applications.
During the 30-40’s focused on setting up sales companies,
During the early part of the century ESAB (or companies that ESAB later bought) invented the first nickel and stainless electrodes, developed the cored wire process (put the flux on the inside!) and then the SAW process to get higher weld deposition rates. Union Carbide, based in Florence, South Carolina invented the plasma cutting process as well as the steel scarfing process.
During the 60’s, 70’s and 80’s ESAB acquired a number of welding companies, many with strong domestic positions, mostly driven by local production capacity many in the then emerging Eastern block economies – check the dates of the acquisitions
These companies were managed as independent, quite autonomous businesses, and were quite successful in their own right.
[On a time line, get historical dump from 2004 copy of Svetsaren, also historical tuff from Steve Engel (Union Carbide / Florence) and and Dan Spackman (Alloy Rods / Hanover). Place on a timeline with pictures.]
2006
Telbo

24. Social Responsibility Human Care
ESAB offers a comprehensive range of Personal Protection Equipment, covering everything from head to foot, for both welding & cutting and general engineering applications. All ESAB products conform to all relevant EU legislations and standards.
Helmets, masks and screens
Filter & spatter lenses
Respiratory equipment
Spectacles, goggles & visors
Welding curtains & blankets
Welding clothing & overalls
Welding gloves
Safety footwear ……
ESAB offers a comprehensive range of Personal Protection Equipment, covering everything from head to foot, for both welding & cutting and general engineering applications. All ESAB products conform to all relevant EU legislations and standards.
As Health and Safety Standards improves year on year, so does ESAB's commitment to providing a product portfolio capable of meeting the ever increasing demands of the markets we serve. As you would expect from a leading supplier of welding & cutting solutions, the ESAB product range is second to none for quality and reliability.

25. Social Responsibility – The Environment Copper-free Solid Wire with ASCTM Features
MAG Welding at New Performance Levels
Consistent welding performance
Stable arc with low feeding force
Excellent arc ignition
High current applicability
Extremely low overall spatter
Trouble-free feedability, even at high wire feed speeds and lengthy feed distances
Low fume emission
OK AristoRodTM with latest Advanced Surface Characteristics (ASC) takes all your welding applications to new levels of performance and ensure all round efficiency.
OK AristoRodTM MAG welding wires with Advanced Surface Characteristics resist corrosion during storage, improves feedability and arc stability and also reduces contact tip wear to a level to the very best copper-coated wires.

26. Social Responsibility Packaging Solutions
ESAB packaging solutions for consumables combine production efficiency with environmental responsibility.
The Marathon Pac™ wire delivery system can offer truly non-stop production in robot applications, meaning zero downtime for spool changes and zero downtime for drum changes when in the Endless set-up.
VacPac™ No re-baking - no quivers - no holding ovens VacPac™ vacuum packaging eliminates the costly re-baking and handling routines normally associated with the storage of electrodes, by preventing airborne moisture absorption. Simple and convenient to use.

27. Strength Through Cooperation

28. Q & A