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Oilon International Oy

23.10. 2012

G.W. Sundmans Helsinki

Oilon International Oy briefly

• Founded in 1961

• Private-owned company

• Wide range of burners for liquid &

gaseous fuels like gas, heavy fuel

oil and light fuel oil. Capacities

from 20 kW to 80.000 kW per

burner

• Complete ground source heat

pump family up to several

hundreds of kW.

• Turnover over 70 million euros,

350 employees

• Activities

Designing

Research and development

Sales

Manufacturing

Customer Service

Oilon facilities in Hollola, Finland Oilon facilities in Lahti, Finland

Oilon facilities in Wuxi, China Scancool facilities in Kokkola, Finland

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10

20

30

40

50

60

70

80

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Oilon Group Turnover 1986-2011 (milj. €)

China

Real GDB growth , index 1950 = 100

Sources: Conference board, ETLA.

Japan

Brazil

USA Finland Germany

UK

Posi

t

Country Real GDP,

Billiondollars

1. USA 14,1

2. Kiina 10,0

3. Japani 4,3

4. Intia 3,9

5. Saksa 2,9

6. Venäjä 2,2

7. Brasilia 2,2

8. Britannia 2,2

9. Ranska 2,1

10. Italia 1,8

11. Meksiko 1,5

12. Korea 1,4

13. Espanja 1,4

14. Kanada 1,3

15. Indonesia 1,0

16. Turkki 0,9

17. Australia 0,9

18. Iran 0,8

19. Taiwan 0,8

20. Puola 0,7

Posi

t

Country Real GDP,

Biljlion

dollars

1. Kiina 38,5

2. USA 24,6

3. Intia 23,3

4. Japani 5,6

5. Brasilia 5,3

6. Venäjä 4,8

7. Indonesia 4,3

8. Saksa 4,0

9. Britannia 3,7

10. Meksiko 3,2

11. Korea 3,0

12. Ranska 3,0

13. Turkki 2,4

14. Kanada 2,4

15. Nigeria 2,3

16. Italia 2,2

17. Egypti 2,0

18. Iran 1,9

19. Espanja 1,9

20. Saudi-Arabia 1,8

Posi

t

Country Real GDP,

Billion

dollars

1. Intia 86,0

2. Kiina 80,0

3. USA 39,1

4. Indonesia 13,9

5. Brasilia 11,6

6. Nigeria 9,5

7. Venäjä 7,8

8. Meksiko 6,6

9. Japani 6,5

10. Egypti 6,0

11. Britannia 5,7

12. Filippiinit 5,7

13. Saksa 5,4

14. Turkki 5,1

15. Vietnam 4,9

16. Bangladesh 4,7

17. Ranska 4,6

18. Korea 4,5

19. Iran 4,3

20. Thaimaa 4,0

Year 2010 Prediction for 2030 Prediction for 2050

Lähde: Citi Investment Research and Analysis

Oilon Burner Family

Waste Incineration

Hazardous Waste Incineration Plant

Ekokem – Riihimäki, Finland

Pulp and Paper Industry

UPM / WISA Pietarsaari, Finland

Gas Collection Pipe

Gaseous and Liquid Bio Fuels

Waste to Energy

CH4 Thermal

Energy

Hartwall brewery – Lahti, Finland

Thermal

Energy

Liquid Bio Fuels

Pyrolysis Oil Concept

Forest residue

Pyrolysis oil refinery

Energy

Oil

transportation

CO2 from flue gases

forming new biomass

Biomass

transportation

Oilon Heat Pump Family

Oil / gas burner

Solar collectors

Piping

Heatpumps / cooling

Oil / gas boiler

Oilon Wordwide Activities Competition had to be taken far away

Oilonin tuote

Product

- burner

- documents

- spares -

Customer visits

Development of the branch

Friends’ impression

Finnishness

User experiences

Product image/outlook

Company image Flexibility

Reliability

Honesty

Quality Product development

Renewability

Impression of personnel

Attitude towards problems

Willingness to be

of service

Service speed

Interest groups’ impression

Oilon product in Finland and in neighboring countries

- burner

- documents

- spares

Product image /outlook

Flexibility

Quality

Oilon product abroad

Tuote

-burner

-documentation

-spares

Product image / outlook

Flexibility

Quality

Attitude to problems

Service ability

Speed of service

Customer visits

Company image

Experiences

Product development

Renewability

Honesty

- Our jump to the world

From Lahti to China

Oilon burners for oil and gas:

Total 30 000 MW in China

Oilon in China

Coal to Gas Conversion Example in Beijing

Oilon Natural Gas Burners,

18 units, total 720 MW

Beijing District Heating Group

Oilon Low-NOx Technology

60 % decrease of NOx emission

Natural Gas Burners Oilon GT-25S

Capacity 17 MW

Beijing District Heating Company, China

Hot Water Boiler 34 MW

Coal to Gas Conversion Examples in Beijing

Oilon’s new production facilities in Wuxi 2011

Oilon burners

Wuxi Ltd

Factory and

Office

China sales

• Finland average 15,60 €/h – 23.00 €/h increase 47%

• China average 0,82 €/h - 2,55 €/h increase 212%

Calculated with rate 1€ = 8,2 Rmb

Calculated with China’s social security costs 40% and Finlands 60%

In euros Finland’s increase is 5,67 € more

Wage changes Finland/China, years 2002-2012

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0

t€

vuosi

Results of the operation in China

tulos 55%

teknol ym

ostoetu

Our jump from Lahti China - Has helped us to grow - Helps us to stay competitive - Helps us to greate new jobs both in

Finland and other parts of the world

Competition chances for a Finnish medium size company

Traditional weapons;

• fast changes

• unique in products

• good and efficient in global, but small

market

In China you may face copying !

• The Company should protect his position

- Name and logo

- model

- inventions

Oilon International Oy, Eero Pekkola

Magnate

Magnate

Oilon in India

In India we worked several years but in the beginning results were

modest till total turnaround when we signed strategic alliance agreement

with Thermax company from Pune in India.

This agreement proved to be excellent solution for both of us.

Thermax can fully utilize all earlier mentioned techniques and we

enjoy theirs. It has also led to very positive commercial results.

Within the agreement we are able to utilize each others know-how and

product palettes very efficiently.

We can develop environmentally friendly and cost effective solutions with

full trust to each others.

Our company values and way of servicing customers are amazing near to

each others.

We have learned to understand and respect Indian people.

Co-operation between Oilon and Thermax

R&D Laboratory after enlargement in 2007.

Research and Development Center

R&D Laboratory

Energon, laboratory for renewable resources