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Investor Presentaiton

SFP cost savings by lever Cost savings by lever (in CHF millions) ✓ See details on following slides 1 3 SULZER 2 ~200m 2017 PE CT 2018 steady Procurement operational G&A Service Go-to-market operational state excellence excellence ■ Comprehensive program across all functions and divisions ■ Procurement, G&A and Operational Excellence are the main levers ■Short term (2015) impact delivered by procurement and CT Operational Excellence 35 2016 Cost savings 2015 of CHF 36m (vs. 18m expected) Bond Investor Presentation 1 New procurement organization fully staffed and with significant success already in 2015 SULER Objectives Establish new global procurement organization and advanced sourcing processes Clearly defined sourcing strategy by category Establish full spend transparency and strict demand control Reduce direct spend by ~5% across major categories, reduce indirect spend by ~9% SULZER Achievements Savings achieved based on both short-term re- negotiations and reengineered mid-/ long term procurement processes/strategies Direct categories: shift to best cost region for machined castings and motors delivered CHF ~4m savings Indirect categories: logistics, travel and insurance of CHF ~10m combined 36 Bond Investor Presentation
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