Building Security Division Dr. Christoph Schönenberger / Roger Herzig 14th November 2013

Agenda 1. Business Unit Profile Systems Presentation of Forster Profile Systems 2. Business Unit Doors – Presentation of RWD Schlatter 3. Presentation of the new Building Security Division

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1. Forster Profile Systems

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Who we are World-wide full-service provider for innovative window, door and facade profile systems in steel and stainless steel with focus on safety, energy efficiency and design  Clear strengths • • • • • • • • •

World-wide market leader in fire protected doors in steel and stainless steel systems High system competence and innovative capacity (innovation rate 25 %) Own production with core competence in connection technology Experienced handling of the complexity in the international regulatory and approval management Solid organization with long-term employees Excellent image with customers (product quality) International network of distribution partners Market-specific distribution mechanism Highest internationalization rate within AFG

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Strategy Markets  Maintain and expand the A and B markets in Europe  Market development with a focus on China, Middle East and Russia

Technological innovation  New security applications (anti-finger-trap door, door with swing-out feature)  New, multi-functional profile system with fire protection and improved insulation values  Universal Design (barrier-free accessibility, insulated threshold, etc.)

Operational Excellence throughout the company Growth  Organic growth up to CHF 100 million (mid-term)  Revenue share domestic markets (CH / DE):ROI 40:60 (mid-term) AFG Investors‘ Day │14th November 2013

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Facts + Figures  180 employees  Profile systems in steel and stainless steel for doors, windows and facades  Product segments

Security

23% 25%

52%

Thermal insulation Non insulated systems

BMW Welten, Munich AFG Investors‘ Day │14th November 2013

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Facts + Figures  Worldwide active in 34 countries  Distribution models individually tailored to markets (retail, direct sales, HUB models)

Headquarters (including production): CH-Arbon Distribution partners in over 30 countries Own distribution company (Vienna) HUBs in China (incl. frame manufacturing), Middle East and Russia

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Innovation  Innovation leader with strong development, pre-development and test department  Technological Innovation:  Security / Universal Design (anti-finger-trap door without threshold, thermal insulated)  Extensions in the security sector (fire, smoke, burglar and bullet resistance etc.): e.g. Forster unico EI30

 Upgrade facade system (adaption to new standards, multi-functionality, thermal insulation, fire resistance, burglar und bullet resistance) e.g. thermfix vario EI30-C5-S200-RC3-FB4 NS  Sliding door fire resistant fuego light EI30 S200 C5, without breakout function, alternatively with breakout function (swing-out) AFG Investors‘ Day │14th November 2013

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Perspective  Increasing trend towards more safety (fire, smoke, burglar and bullet resistance)  Increasing awareness of energy efficient solutions  Deeper penetration of existing markets  Development of new markets with high market potential  Increased demands on the design (filigree steel and stainless steel profiles)  Expansion of direct sales in AT (glass, fittings, automation of doors)  Extending value chain by expanding the frame production AFG Investors‘ Day │14th November 2013

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2. RWD Schlatter

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Who we are Leading Swiss company for premium quality doors Leading supplier of sustainable systems for security, fire safety and access control

 Focus on security and sustainability  Switzerland’s market leader for security doors  Clear advantages • Rate of innovation 30% • Responsible for the entire value-added chain • Compliant with the increasing number of standards and regulations • Solid organisation with long-term employees

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Strategy Markets  Maintaining and expanding the Swiss market  Pursuing various approaches to promote and internationalize the door industry

Technological innovation  Unique worldwide product line with the natureplus brand  New kinds of technology for indoor air quality in new buildings – particularly for the renovation market, thanks to connector fan technology

Growth  Mid-term goal of more than CHF 100 million

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Facts + Figures  180 employees  Extensive product range in the areas of security and sustainability  Four locations in Switzerland  Direct sales to general contractors, architects, the public sector, etc.

Headquarters (incl. production): Roggwil Dietikon, Vevey, Taverne

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Innovation  30 % of all products that leave our production facilities were developed within the last three years  This makes RWD Schlatter the leading innovator in Switzerland  Continuous development of the natureplus product range

 Creation of smoke protection and long-term durability tests in accordance with the revised fire safety regulations

 Integration of connector fan technology with wireless power

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Looking forward  Growing trend towards greater safety (fire, smoke, anti-burglary, bulletproofing)  Increasing awareness of the need for sustainability in the building industry  Increasing number of standards and regulations, such as the impending introduction of smoke protection laws in Switzerland  Diversification of risks through the internationalisation of the business unit  Expansion of the retail sector, which currently accounts for approx. 5% of the industry’s turnover  Development of professional maintenance services for door systems AFG Investors‘ Day │14th November 2013

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3. Building Security Division What do we mean by building security?  Fire and smoke resistance

 Burglary resistance (RC)

 Bullet resistance (FB4 NS)

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Targets of the new division Creating a fast-growing new division with consolidated net revenue growth over CHF 200 million

million CHF

250 200 150

200 m 150 m

100 50 0

2013

2016

Increasing internationalization ratio of the new division Internationalization of the Business Unit doors with a revenue share of 30% outside of Switzerland in 2016 Continuation of the internationalization of Business Unit Forster Profile Systems with a revenue share of 75% outside of Switzerland in 2016

Increase sales and profitability by realizing existing synergies resulting in an EBIT of > 9% in 2016 AFG Investors‘ Day │14th November 2013

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Use of synergies in sales activities  Forster and RWDS sales people apply for their joint (and differing) products to architects, designers, general contractors and the public sector in Switzerland  Forster sales people apply for their joint (and differing) products to architects, designers, general contractors and the public sector in Germany, Austria, France, Spain, England, Russia, Middle East, Singapore and China

 Exchange of project information between the two Business Units regarding potential objects in domestic and international markets

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Use of synergies in R & D  Development of joint products  

Wooden door in steel profile system Steel door with wooden panel

 Common test center  

Common use of existing test stands (continuous function, smoke, noise) Common purchase of new test facilities (fire oven, air test bed for exterior doors, etc.)

 Knowledge transfer in relation of  

Fire and smoke protection, burglar and bullet resistance, sound insulation, climate Common EN standards and common EN test procedure

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Summary  The Building Security Division combines the two Business Units Doors and Profile Systems which 

are both market leaders in its specific product segment  Forster Profile Systems as worldwide market leader for premium door, window and facade systems in steel and stainless steel  RWD Schlatter as market leader in Switzerland for premium doors



complement one another (steel and wooden doors)

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are both innovation leaders with an innovation rate of > 25%

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focus both on solutions driven by security, energy efficiency, ecology and design

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will become a fast growing profitable entity by using synergies in Sales, Research & Development and Product Management

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Press Center, Federal Parliament Building, CH-Berne

Fire resistant doors and glazings with the systems Forster fuego light EI30 and Forster thermfix vario EI60 AFG Investors‘ Day │14th November 2013

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City West, CH - Chur

Forster fuego light AFG Investors‘ Day │14th November 2013

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EZB Europäische Zentralbank DE-Frankfurt

Under construction: over 1200 fire resistant doors with the system Forster fuego light EI30 AFG Investors‘ Day │14th November 2013

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Lotte Plaza RU-Moscow

Entrance doors, fire rated doors and fixed glazings in stainless steel AFG Investors‘ Day │14th November 2013

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Residential – Giant Villa CN-Shanghai

Thermal insulated curtain walls with Forster thermfix vario, windows and doors with Forster unico AFG Investors‘ Day │14th November 2013

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Palacio de las Artes Reina Sofia ES-Valencia

Fixed glazings, sound insulated doors and glazings AFG Investors‘ Day │14th November 2013

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Hotel Crowne Plaza, BE - Liège

Forster unico, Forster thermfix light AFG Investors‘ Day │14th November 2013

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Casino de Montecarlo, MC - Monaco

Forster unico AFG Investors‘ Day │14th November 2013

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Thank You!

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