Danieli innovactionto be a step aheadin CapEx and OpEx

1,000

1,500

2,000

2,500

3,000

3,500

500

(millions of euro)

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

02

20

03

20

04

20

18

DanieliSales Revenue

1,4

95

2,0

02

2,4

57

3,1

15

3,2

10

2,5

83

3,1

18

3,0

81

2,7

82

2,9

44

2,7

66

2,5

08

2,4

91

73

0

1,1

50

1,0

00

2,7

06

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

SEA+Americas EU+RU Italy (Plantmaking and Steelmaking)

DanieliPersonnel

3913

2009

890

3171

7974

3887

2010

925

3851

8663

4050

2011

1072

4270

9392

4345

2012

1243

4449

10037

4586

2013

5069

10944

1289

4817

2014

5126

11424

1481

4767

2015

4602

10954

1585

4321

2016

3469

9419

1629

4400

2017

3013

8959

1546

4679

2018

2653

9358

2026

DanieliBacklog

Long Products Division

Steel Meltshop Division

Flat Products Division

Steelmaking Division

Other

17%

16%

18%13%

36%

2,954 M Euro

DanieliResearch and development

Research (lower columns)and costs incurredfor new products development

50

100

150

200

175

125

75

25

0

13/14 14/15 15/16 16/17 17/18

35

150

185

25

150

35

150

45

155

40

110

150

200

185175

DanieliResearch and development

Turnkeyplants

138

DanieliProducts and scorecard

DanieliProducts and scorecard

Minimills,micromillsand nanomills

104

505Heavy section,bar and wirerod mills

390Extrusionand forging presses

150,000hours/yearof technical supportand consultancy

74Seamless tubeand welded pipe mills

894Recycling equipment shredders, shears, bailers

362Fume dedustingand water treatementplants

DanieliMain scorecard

38Energiron directreduction plants

156Complete electricsteel meltshops

333Hot strip, plateand cold rolling mills

147Blast furnace and converter projects

2,313Casting strandsfor slabs, bloomsand billets

1,799Strip processingand finishing lines

Production unitsand service centers

Danieli PlantmakingWorldwide presence

Design and manufacturing centers

1 / Danieli Headquarters, Italy 2 / Danieli China

4 / Danieli India

6 / Danieli Austria

3 / Danieli Thailand

7 / Danieli Germany5 / Danieli Volga, Russia

DanieliDesign and manufacturing centers

Company Location Total Area Workshop Area

Danieli Headquarters Buttrio,Italy

320,000 m2 92,000 m2

Danieli China Changshu,Shanghai

200,000 m2 90,000 m2

Danieli Thailand Rayong,Bangkok

525,000 m2 90,000 m2

Danieli India Sri City,Andhra Pradesh

320,000 m2 41,000 m2

Danieli Volga Dzerdzhisnk,Russia

250,000 m2 10,000 m2

Danieli Austria Völkermarkt,Carinthia

40,000 m2 6,000 m2

Danieli Germany Meinerzhagen,Nordrhein-Westfalen

4,200 m2 2,800 m2

DanieliDesign and manufacturing centers

We build itin our own

state-of-the-artworkshops

DanieliHistory

1914–1960The Origins

1960–1970Simple machines for steelmakingand the successof the Brescia area minimills

1970–1980Minimill pioneerin Europe and the US

1980–2000Purchase of leading companies in the design of metals production plants

2000–2015Design and manufacturing internationalization

2015–2020A step ahead

1900 20001960 1980 2020

METAMORPHOSIS 1

METAMORPHOSIS 2

DanieliMetamorphosis 1 project

Internationalization Closeness to costumers

Morecompetitiveness

Fast-track ordersand service supply

METAMORPHOSIS1

DANIELI THAILAND

525,000m2

TOTAL SURFACE900peopleEMPLOYMENT

13,000m2

TECHNICAL AND ADMIN OFFICES

90,000m2

WORKSHOP AREA2005START OF OPERATIONS

EUR (Million)

0

10

20

30

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

15

32

14

2325

30

1110

7 7 8

3 2 3

DANIELI THAILAND / INVESTMENTS

METAMORPHOSIS 1 METAMORPHOSIS 2

> Competitiveness

> Strong support of the Thai government

> Positive culture

> Long experience with Thais

> High Fabrication skills

> Efficiency and hard working

> Process oriented approach

> Fundamental of Engineering

DANIELI THAILAND / WHY?

BANGKOK

CHONBURI

RAYONGMAPTAPHUT

PATTAYA

SRIRACHA

Bangkok Int. airport

Suvarnashumi Int. airport

U-Tapao airport

Bangkok port

Sriracha harbour

Laemchabang deep sea port

Sattahip port Maptaphut deep sea port

EUROPE

MIDDLE EAST

CHINA

KOREA JAPAN

TAIWAN

SOUTH EAST ASIA

AMERICA

Strategic location

> 1:45 hrs from Bangkok

> 1:30 hrs from the Airport

> 1 hrs from Pattaya

Near 3 main ports

> Maptaphut (50 km)

> Laemchabang (50 km)

> Sattahip (70 km)

DANIELI THAILAND / WHY?

> Limited Supply chain

> Low experience in the Steel Making business

> Cost level higher than China

> Project and product orientation

> Low new investment in the steel makingbusiness

DANIELI THAILAND / CONSTRAINTS

Danieli in ThailandMission and values

To supply steel machinery equipment with

Danieli high quality standardand better service world wide

Specializedin high quality equipment

A strong competitiveThai company in the world

DANIELI THAILAND / SPECIALIZATION

Mix variety reduction > From 80 kind of machines to 12

Product standardization > Decrease of cycle time, increase of volumes

Supply Chain development > Stable forecasting, stock policy

Make or Buy review > Cost optimization, better resources utilization

ACTION

-35% Product cost

-50% Manufacturing Lead Time

+50% Sales (captive)

Reduction of customer Claim

Indirect cost -20% > Standardized Process

Access to WW Market

DANIELI THAILAND / CARDTRIDGE ACHIEVEMENTS

DanieliMetamorphosis 2 project

Innovation in operating methods

Innovation inthe organization

Continuous training for managers

Horizontal integrationof working groups

METAMORPHOSIS2

People in different cultures share

basic concepts but view them from

different angles and perspectives,

leading them to behave in a manner

which we may consider irrational or

even in direct contradiction of what

we hold sacred.

Richard Lewis – What is culture?

“ “