1. March 31, 2005 Hanyang University Spirax Sarco Korea Lecturer: Insoon Park

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3. 3 1. Spirax Sarco Group In 1910, Founded in UK. British public company and quoted on London Stock Exchange for over 30 years. World leader in the control and efficient use of steam and other industrial fluids. 3500 staffs for 39 countries. Group Turnover- US $ 530 M and US $78 M profit in 2003. Geographical Analysis of Turnover 30% 34% 13% 23% America Europe Asia/Africa UK

4. 4 2. Spirax Sarco Korea  1976 Opened Sales Office  1978 Founded SSK and Manufactured Products in Bupyung and Namdong in Incheon since 1992  1984 Opened Customer Training Center  1991 AS Center opened at factory and 3 regional offices  1993 LAN Network introduced based on AS 400 system  1996 ISO9002 Quality system registered  2000 Awarded the Best A/S Company by KMA  Present Operating factory, Seoul office and 11 regional sales offices with 165 employees

5. 5 3. Vision/Mission/Philosophy of SSK Vision As a market leader in the field of steam and fluid, SSK wins customer confidence.Mission SSK maximizes customer value by providing them with steam and fluid solution to save energy and improve productivity by means of KSP.Philosophy Employees are our most valuable assets and company provides a pleasant work place. Employees do their best to satisfy customers with passion.

6. 6 4. Key Success Factors a.Differentiation Strategies-Maximizing customer value * V S -P S ＞ V a -P a

7. 7 4. Key Success Factors b. Ecstasy Management by CEO ▶ Creation of invisible power for employees and customer satisfaction c. Core Competence ▶ Superb Marketing Capability ▶ Excellent After Service ▶ Providing KSP for total Steam System Solution ▶ Unique SSK Culture

8. 8 5. Current Financial Data  Paid in Capital : KRW 3.84 billion  Total Assets : KRW 30 billion  Debt to Equity Ratio : 85%  Net Assets (Total Equity) : KRW 16.3 billion  Shareholders Ownership : Spirax Sarco Investment Ltd. ( 97.5%), SSK Employees (2.5%)  2004 Sales Turnover : KRW 45 billion  Number of Employees (2004) : 165

9. 9 6. Products  Steam Field ;Steam Traps, Boiler Controls, Meters, EL/PN Controls, Condensate Recovery, Industrial Humidifiers  Fluid Field ;Compact Water Heaters, Water Balancing valves, Water Control Valves

10. 10  Green (Environment) Field ; Watson Marlow/Bredel Peristaltic pumps, Clean steam products 6. Products

11. 11 7. Major Industries and Customers  Semiconductor ; Samsung, LG Semicon, Hynics, Dongbu Electronics, ANAM semicon  Oil and Petrochemical ; LG Caltex, SK, YNCC, LG chemical, BASF Korea  Motor Car ; Hyundai, Kia, Daewoo, Samsung, Ssangyong, Daelim  Shipbuilding ; Samsung, Daewoo, Hyundai, Hanjin Heavy Ind.  Building ; ASEM, Inchon Int’l Airport, POSCO Building, I-tower, Seoul National Univ.  Hotel ; Marriott, Lotte Cheju, ASEM International, Hotel Shilla, Grand Hyatt  Pharmaceutical ; Shoering Korea, Berlinger Ingenheim, Green Cross, Ciba-Geigy  Food & Beverage ; Nongshim, Seoul Milk, Cheil Sugar, OB Beer, Kagil Korea  Construction ; Hyundai, Lotte, Daewoo, LG, SK, Samsung, Daelim  Textile ; Saehan, Kolon, Samyangsa, Hyosung, Kohap, Dongkook synthetic fiber Total Number of End Users : 4,100

12. 12 8. SSK Today -Total Customer Satisfaction Index (2003) 80.4 (501) 48.5 55.549.2 (103) (126) (62) *Source :Union Research Institute (Aug. 2003)

13. 13 8. SSK Today - Satisfaction Index by 7 Category (2003) *Source :Union Research Institute (Aug. 2003)

14. 14 ▶ Sales – 45 Billion Won (USD 45 Million) ▶ Staff- 165 ▶ Market Share - 40%~60% ▶ Brand Image/ Reputation-Excellent! “ Energy Saving is Spirax Business.” Today-2004 Spirax-Sarco Korea

15. 15 Turnover FY1978 - 2004 (Mil won) CJB JN ISP 450 393

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