PLASMA | LASER | W ATERJ ET | AUTOMATION | SOFTW ARE | CONSUMABLES

Company Overview

Growing global footprint

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Global HQ Hanover, NH, USA

CAM Software Lockport, NY, USA

Esse-A Sasso Marconi, Italy

• Hypertherm has approximately 150 Associates outside the US in sales, service and distribution functions

• Channel partners in 93 countries

Mexico City

Distribution Center Sales and technical support

São Paulo

Roosendaal

Busan Osaka

New Delhi Shanghai

Singapore

AccuStream New Brighton, MN, USA

Europe, Middle East and Africa

25%

Asia 21%

South America

9%

North America

45%

Sales Breakdown by Geo

End markets

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Light Industrial plasma systems

• Hypertherm Powermax plasma systems set new standards in terms of both performance and reliability in the industry

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Technology leadership

• $20 million investment in R&D each year

• More than 10% of associates are engaged in research and development

• Hypertherm holds 110 U.S. patents

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Recognition

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2009

2002, 2005, 2006 & 2008

Nominee, Most Recommended by Customers, Integron 2013

Winner, Manufacturing /Technology, 2011

OSHA VPP, 2011

Recognized for Flexible Work Schedules and

Telecommuting Options 2013 Spirit of New Hampshire Award

Outstanding Business Champion

2012 Large Sustainability Champion, Business New Hampshire Magazine

Top 100 overall, 5th place in industrial and manufacturing category

2013 Manufacturer of the Year, Northeast Resource Recovery

Association

1997, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2008 , 2009, 2010, 2011, 2013

2014 Innovations in Employee Ownership

Global expertise and Local presence

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Asia PacificTeam

Presence

Singapore (HQ), New Delhi, Busan, Tokyo, Australia

In region warehouses

Singapore

Cutting Technology Center

Singapore, and Delhi

Organization

65 Associates. (Singapore 18)

Teams

Sales, Technical Service & Training, Customer Service, Marketing, Finance, HR, & logistics.

A true service partner

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Worldwide training, technical, and customer service teams committed to helping our customers whenever they need help or advice.

Local Logistics

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$2.3 million of inventory in the Singapore warehouse to readily support the installed base in the Asia Pacific region.

States of Matter

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What is Lightning?

• Plasma:

– Has no melting point and doesn’t hold a shape

– Has no surface tension and no defined boiling point

– Cannot be condensed into a liquid or captured in a cylinder

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Plasma is the 4th State of Matter

• Common characteristics:

– Bright – radiating light energy

– Hot – 20,000°C radiating thermal energy

– Conductive – ionized gas conducts electricity

12 Plasma has more energy than a simple gas is able to contain

Plasma Cutting

• In the plasma cutting process, this electrically conductive gas is harnessed and controlled.

• A torch is used to hold consumables which constrict and control the ionized gas stream or plasma arc.

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Requirements for Plasma

3 things needed to create a plasma arc:

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Plasma Requirements Plasma Arc Cutting

Process gas Air compressor or cylinders (air or N2)

Energy source Generator or Utility Power

Arc Starting Method Trigger Start Hand Torch Remote Start Machine Torch

“This accident

happened in Toa Payoh industrial estate where a Flash Back occurred in the Oxy Fuel system. The ensuing explosion and fire caused heavy damage and loss of life.

Gas Equipment Reliability and Maintenance 15

Safety: Explosive Gases

Safety: Explosive Gases

In 2008, there was an incident near a factory involving 3 cars on the roads. A small truck carrying 2 Acetylene gas cylinders and 2 Oxygen gas cylinder at the back caught fire in the middle of road. The cylinder on fire flew like a bullet, hit a first car, penetrated the car roof and final stopped after hitting a second car’s front bumper....

16 Transportation of Acetylene Requires Special Handling

Safety: Explosive Gases

17 Oxygen and Acetylene Can Be Deadly

• According to the London Fire Brigade: – Acetylene presents a unique risk compared to all other bottled

gases due to its instability: • Heat or mechanical shock can cause spontaneous internal heating • The risk of explosion remains for 24 hours after an initial fire has been stopped • Its explosive force has been such to send entire cylinders and fragments up to 175

metres

– Due to the risk of an explosion, a hazard zone of 200 metres radius is established whenever there is a fire danger around acetylene cylinders

– In the first 6 months of last year, 17 acetylene incidents occurred in London

• Hundreds of homes and inhabitants were forced to evacuate in numerous acetylene-related events

– Oxy/acetylene use has been banned in the London rail network

• ....the Singapore Workplace Safety and Health council has enforced continued vigilance and control over its safe use, signage and storage.

Safety: Global

Countries Are Taking Action to Regulate or Ban Acetylene 18

“A man day

while 6 others were injured after an acetylene tank exploded at a metal fabrication shop in Quezon City, Philippines”

Gas Equipment Reliability and Maintenance 19

Safety: Explosive Gases

Safety: Cylinder Handling

• Risk of violating transportation and safety regulations governing cylinders

• Risk of back strain lifting acetylene cylinders (85 kg) and oxygen bottles (90 kg)

• Risks of other cylinder-related injuries, including:

• Pinch points

• Slips, trips and falls

• Hand and foot injuries

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Plasma Reduces Risks and Lowers Costs

Safety: Injuries Due to Grinders

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Less grinding reduces risk of eye, carpal tunnel and tendonitis injuries

UK has implemented 4 hour per day maximum time allowed for grinding per person

• Eliminates need to burn off pipe and other coatings coatings

• Powermax plasma torch has a built in safety trigger to prevent accidental firing yet is easy to use

• Shuts off automatically when trigger released or not cutting

Safety: Burn Injury and Fire

22 Automatic Shutoff Minimizes Risk

• “Occupational Safety and Health Circular”– Workplace Safety and Health Council Singapore – Hazards in using Oxy-Fuel gas Equipment – Hoses and Connections – proper use of connectors – Flashback - mandatory use of flashback arrestor and non return

valve – Safe use of Gas Torch – Safe Operating Procedures – Proper handling of Oxygen cylinders – Not mentioned

• Compressed gas cylinder danger – Corrosion and the potential loss of cylinder integrity – Transportation and orientation of cylinders – Exposure to hot environment – hot work and sunshine

» heats up and increases the pressure

Safety: Singapore

Acetylene: High Risk 23

Safety Summary

• No explosive or flammable gases

• No transportation of dangerous cylinders

• No heavy lifting

• 87% less noise exposure for gouging

• Burn & fire hazards greatly reduced

• Conclusion – Lower safety related costs

and more productive workers 24

What is Plasma? Electricity and pressurized gas combine to form a plasma arc of ionized gas. This super-hot plasma, 20,000°C, instantly melts metal. The gas, traveling at 6,000m/sec, shapes the arc and blows molten metal away, leaving a smooth cut edge.

SOLID

LIQUID

GAS

PLASMA

High Temperature Cuts Metal by Melting 25

CLICK FOR VIDEO

Powermax Plasma Capabilities Powermax Plasma Advantages…

•Cut and gouge any electrically conductive metal •Cut through rust, paint, coatings and stacked metal •Cut with air or nitrogen, no flammable gases required. •Cut fast and clean up to 50mm, no pre-heating. •Small Heat Affected Zone •Can “drag cut” with tip on plate •Easy to use and better to automate. Plasma Limitations…

•Can’t heat metal for bending. •Can’t effectively cut much thicker than 75mm at 400 amps. •Requires sufficient electrical power to work.

26 Plasma’s Many Advantages versus Oxy-Fuel

Use Plasma for Cleaner Cuts

Plasma cuts are smoother and generally have less dross than oxy-fuel; the dross that is produced is easier to remove

Powermax Oxyfuel

Plasma Reduces Grinding & Clean up Time 27

Plasma is More Versatile

Unlike oxyfuel, plasma cuts and gouges painted, rusted, or stacked metal with ease

Versatility: Stacked Steel, Stainless, Aluminum 28

Powermax

Plasma is More Versatile

Unlike oxyfuel, plasma cuts and gouges painted, rusted, or stacked metal with ease

Limited Capabilities 29

Oxyfuel

Plasma is More Versatile

Unlike oxyfuel, plasma cuts and gouges painted, rusted, or stacked metal with ease

Clear Choice 30

Compare

HAZ (heat affected zone) comparision on 3,5mm mild steel

Oxy fuel

Plasma

Laser

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90% Smaller Heat Affected Zone Using Plasma

Heat Affected Zone

HAZ (heat affected zone) comparision on mild steel

> 10mm heat tint with oxyfuel Only 2mm Heat Tint with Plasma

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Heat Affected Zone

0

100

200

300

400

500

1/8” 1/4” 3/8” 1/2” 5/8” 3/4” 1” 1-1/4”

Spe

ed (

inch

es p

er m

inut

e)

3 6 10 12.7 15.8 19 25.4 32 mm

Powermax30 (30 amps)

Powermax105 (105 amps)

Oxy-fuel

12.7 10.1 7.6 5.1 2.5 m/m

Plasma Cuts Faster For Most Jobs

6mm – 15mm 10X to 3X Faster 33

Plasma Lowers Costs for Most Jobs

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Air plasma averages 30% lower cost per meter of cut at the plasma system recommended thicknesses versus oxyfuel, not counting costs of, secondary operations, cylinder rental and delivery

Hypertherm Powermax systems were used for this comparison.

Lower Costs = More Jobs

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Air Plasma Applications Structural Steel

Machine Specification sheet- Electrical supply requirement

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Systems

Machine Specification sheet- Torches

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Torches

Success Case Studies- Singapore, Dongah Geo. Engineering

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• LTA – DTL 3 project • Removal of TBM is tricky- safety cannot be

breached; no flammable gas allowed!

• Powermax 125 with a severance of 57mm stands as the PERFECT solution

• TBM can be removed efficiently and safely

• 100% duty cycle of the PMX 125 allows for continuous cutting!- Project finishes on time!

• Completely eliminates the use of fuel/ flammable gas

Success Case Studies- Singapore, Daelim

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• cut 1,4 m diameter tubular pipes and • 700 mm pieces of sheet pile which are located

at a vertical depth of 19 m • No oxyfuel because it is too dangerous 19m

underground; obviously no gas tanks allowed • Mechanical grinding too slow

• Powermax 85 is used; • Just compressed air and electricity • Job’s done.

• “this may well be a first for any construction

company to use air plasma to do the job in an underground expressway project in Singapore!”

– Mr Hong, Senior Project Manager • Overcame ALL SAFETY issues • Faster than before approach

Success Case Studies- Singapore, Back Ho (S) Pte Ltd

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• 7- 9” Makita grinder proposed for cutting king

post • Too slow because of the high metal thickness

• Powermax 105 used because of the significantly faster cut speed and higher cut capacity

• Built in gouging function serves as a precut process when severing 80mm king post

• So much faster • Safer

Success Case Studies- Singapore, Scrapyard

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• Odd shaped big metal scraps are a challenge to breakdown/ dismantle

• Workers are exposed to heat and lag time is frequent

• Many hard to reach places in a piece of big scrap

• Hyamp long torch eliminates the mentioned challenges

• Workers can now complete a job much faster and more efficiently- high productivity

• Safety of the operators no improved- not facing direct heat for too long; no need to use ladders to climb up to scraps.