Nov 4, 2019

Evac Group

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Global Supply Chain for spare parts in Maritime industryDr. Reinhard S. SchiebelerChief Transformation Officer & Deputy CEO

Oct 1, 2019 2

Evac Group

*

Headquarters: Helsinki, FinlandEmployees in 14 countriesNumber of own offices: 24Assembly and manufacturing units: China, France, UK and USA

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Global footprint

Nov 4, 2019

South Korea, Pusan (x 2 offices)• Project and service sales

Singapore• Project and service sales• Warehousing

India, Mumbai• Sales operations and store

United Arab Emirates, Sharjah• Project and service sales

Brazil, Sao Paulo• Project and service sales• Project management (building)

Spain, Palma de Mallorca• Service sales• Sub-brand Echo Marine operations

Germany, Rellingen, Oldenburg, Kiel, Osten• Project and service sales• Product management and development• Project management and procurement• Sub-brand Virtus operations

Finland, Helsinki (Headquarters), Espoo• Shared services management• Product management and development• Project, operations and global supply chain

management• Project and service sales• Spares parts distribution

Assembly/Manufacturing

Sales officeProduct development

Distribution center

United Kingdom, Chesterfield, Grampian and Ford

• Sub-brands Cathelco and Transvac Systems operations

• Product management and development• Systems manufacturing and warehousing

(desalinators, BWMS)• Project and service sales

France, Eragny and Antibes• Project and service sales• Project management and procurement• Product management and development• Building business shared services • System assembly (disalinators for yachts) and

warehousing• Sub-brand HEM operations

China, Shanghai• Assembly• Project and service sales• Project management• Quality control and logistics for

Asian cargo, offshore and building

USA, Cherry Valley and Miami• Project and service sales• System assembly (for Navy & coast guard and

building)• Spare parts distribution in Americas

Sweden, Stockholm• Project and service sales• Product management and development• Project management

Norway, Oslo and Notodden• Project and service sales

Evac Complete Cleantech Solution All cleantech solutions from one partner

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*Solutions for building industry customers are sold by Bvac

Vacuum toiletsVacuum

generation unitsVacuum tanks

Central vacuum units

Ballast water units

Wastewater treatment units

Grease separation

Cathodic current units

IncineratorsBriquetting unitsCompactors and

densifiersFood waste

collection unitsDewatering units

DriersCentral vacuum

units

Desalination plants

Potable water treatment units

Cooling systems pipework anti-

fouling

Nov 4, 2019

Marine industry references

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Cruise vessels RoPax vessels and ferries

River cruise vessels

Yachts Cargo vessels Navy and coast guard vessels

Workboat and special vessels

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Offshore industry references

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Accommodation vessels

Construction andpipe laying vessels

Jack-up drillingrigs

Support vesselsCrane and heavy lift vessels

Semisubmersibleplatforms

Pioneering spiritWorlds largest vessel

Aegir Deepwater construction vessel

Safe BristoliaAccommodation vessel

Floatel InternationalSemi-submersible accommodation vessel

Drilling rigs

Nov 4, 2019

Building industry references

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Healthcare facilities and laboratories

Correctional facilities

Supermarkets and warehouses

High traffic areas

Hospitality facilities

Offices and institutions

Transportable facilities

Nov 4, 2019

We want to build a cleaner world for everyone. This we do by helping our customers to meet their environmental goals everywhere

We support our customers by providing them with innovative energy-efficient waste and water management systems, as well as corrosion protection systems, that reduce the environmental footprint and extend the lifespan of their vessels, buildings, and other installations.

Our mission

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Evac is your trusted global service partner throughout the life cycle of your operating unit

Our vision

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Megatrends creating need for cleantech solutions

Climate change Energy efficiency

Lack of fresh water Sustainable development

Megatrends driving our business

Legislation

Public opinion

Environment

Market potential

Need for cleantech solutions

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Evac is growing fast50

MEUR

105 MEUR

156 MEUR

2012 2017 2018

Strong sales turnover development

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Strong profitable growthSupported by acquisitions

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Strong profitable growthSupported by technology development

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Evac Complete Cleantech Solutionfor a cruise vessel

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A global market leaderin marine industry

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Evac is a clear market leader in the following systems

• Vacuum collection

• Wastewater treatment (non-Cruise segment)

• Dry and wet waste

• Fresh water

In all our systems, our market share is ~45% including aftermarket services

The Story

• International customers around the globe

• Various acquisitions were to be integrated

• New technologies added

• Transformed into new business concept –from part supplier to solution provider

• Rapid growth

• Installed base not always known from former acquisitions

• After sales / spare parts and service business became the biggest growth and profit driver

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Service Operation – Key Functions

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• Warranty

• Technical support

• Documentation

• Spare parts

• Operation repair

• Onboard service support

• Customer support

Nov 4, 2019

Spare and replacement parts

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We sell high quality spare parts for all our different systems.

• The parts are made of durable materials and they are well tested which guarantees their long life span.

• Parts are globally available trough our extensive distributor network.

Nov 4, 2019

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Our supply chain is both global and local

End customers

• Shipyards

• Ship operators

• Building owners

• Facility managers

US distributionwarehouse(Americas)

Aft

er

sa

les

DistributorsP

roje

cts

Evac project sales

Agents

Finland distribution warehouse

(Europe & Asia)

Manufacturing partners

Evac assembly plant (Shanghai)

Component suppliers

Systems and solutionsmanufacturers

Sp

are

pa

rts

New

ins

talla

tio

ns

Ret

rofi

t p

roje

cts

Nov 4, 2019

Sourcing

MRP RUN

BTO STOCK

Action Action

• Items listed as buy to order (BTO) are purchased for open orders once the order is confirmed in the ERP

• Purchasing place the order based on the Product lead times established in the ERP

• Items with are purchased more than three times in a year are classed for stock review

• Stock levels are continually monitored based on demand

• ROP (re order points) are established for stock items

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Spare Part Supply - Process

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Customer request

Processing request

Purchase order issued

Purchase order

confirmedSourcing

Packing and

processingLogistics Financial

ActionAction Action Action Action ActionAction Action

Request for quote sent by:• Demanding

procurement portal

• Supplier procurement portal

• Third party portal

• Email

Green = Customer actionsBlue = Supplier actions

Quotation fulfiled• Customer

checked• Credit

policy checked

• Items ID• Priced• Terms • Quote

issued

Purchase order sent by:• Demanding

procurement portal

• Supplier procurement portal

• Third party portal

• Email

Purchase order received• Order

confirmation issued

• Customer terms applied

Item sourcing• Stocked items• BTO

Warehouse• Order packed• Packed order

details availble

Logistics• Based on order

terms• MOT• Incoterms• Shipping

documentation

Finance• Receivables• Collections• Invoice• Statement

Nov 4, 2019

Spare Part Supply - Analysis

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Customer request

Processing request

Purchase order issued

Purchase order

confirmedSourcing

Packing and

processingLogistics Financial

ActionAction Action Action Action ActionAction Action

Request for quote sent by:• Demanding

procurement portal

• Supplier procurement portal

• Third party portal

• Email

Green = Customer actionsBlue = Supplier actions

Quotation fulfiled• Customer

checked• Credit

policy checked

• Items ID• Priced• Terms • Quote

issued

Purchase order sent by:• Demanding

procurement portal

• Supplier procurement portal

• Third party portal

• Email

Purchase order received• Order

confirmation issued

• Customer terms applied

Item sourcing• Stocked items• BTO

Warehouse• Order packed• Packed order

details availble

Logistics• Based on order

terms• MOT• Incoterms• Shipping

documentation

Finance• Receivables• Collections• Invoice• Statement

• In 2018 spare part supply OTD only in the lower 80s

• Early 2019 we analyzed whole process

• RFQ is most critical area

35 1 2 4

speed time/cost/speed timingdata/tool/offer speed

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Documentation quality

Actions based on Analysis

• Action 1: Standard activities and Kaizen workshops (support team and warehouse) to increase throughput

• Action 2: Workshop with distributors to speed up process and decrease transport time to 1 day

=> OTD climbed into 90s

• Action 3: Rearrangement of people. Experienced people concentrate on RFQs. Sending actual spare part lists to shipping lines to update their system

=> RFQ backlog started to decrease immediately

• Action 4: Improve quality of invoicing and cash collection

• Action 5: Campaign to use current internet spare part ordering tool and develop a new a amazon-like catalogue system

=> will almost eliminate RFQ process

• Action 6: Investigate installed base and rework documentation of all finalized projects

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OTD – Trend Line

• 2018 and Q1/19 trending in lower 80s

• New initiatives paid of rapidly leading quickly into the 90s

• Higher customer satisfaction

• Higher employee happiness

• Continuous improvement drives further development

• OTD doesn’t show the whole story

• Response time to first contact is as important. Our target: <24h

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• Approx. 20% of order parts on stock representing approx. 90% of order volume

• Part availability in stock approx. 97,5%, stock value turn around 6-8

• OTD target for this year at 96,5% and next year 98%

• Today 30% of spare parts sales done through internet tool. Target for internet sales now 50% for 2020

• Order processing takes one day and delivery by airfreight one day

• By yearend RFQ processing time will be down to max. 1 day for standard parts and 2 days for special projects

• Continued database and documentation cleaning will reduce errors and time losses

• Catalogue system pilot ready for 2 cruise ships by yearend

− Data entry first standard equipment and then ship by ship

− Continuous rollout

− Finalized by end of 2020

− Target for 2021: 75% of orders handled through portal

• Reporting, root cause analysis and actions on weekly basis to further improve reaction time

World Class Customer Service

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Sustainability of our operations

We help our customers improve their environmental performance by providing them state-of-the-art cleantech solutions.

Nov 4, 2019

Evac company presentation video

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Thank you!Further information at www.evac.com

Nov 4, 2019