Q32012 Update - WebinarWe are changing – why and how?

AB Power Inc.September 2012

Updates from Management Meeting

AB Power Inc.September 2012

• Order Intake Q32012 is 5.0 MEur, up 7% from Q22012

• Net invoicing Q32012 is 4.7 MEur, up 2% from Q22012

• Gross Margin reported is 19.1%, dropping from 20.4% in Q22012

• Large Orders – Newport Power Plant Extension (1.8 MEur), St. Louis FV321 (0.5

MEur)

•Key operational changes :

1. Chemicals A, B, C added to banned substances – alternates D, E to be used

2.Products X, Y have been made obsolete and will be phased out by end of Q4

2012 – replaced by products Q, W

3. Pricing for all products to include 3% of shipped value as special import duty

and 1% on order value as capital tax

Immediate changes in all work groups

AB Power Inc.September 2012

S. No. Work Flow Change Groups Affected

1 All sub-suppliers to be notified of the banned chemicals.

Purchasing TeamQuality Control TeamCommissioning Team

2 All key accounts, distributors and sales personnel to be notified about product changes.

Key Account ManagersDistribution Managers

Sales Teams

3 Pricing tool to be revised to include new duty and tax Commercial ManagerContracts Manager

Key Account ManagerDistribution Manager

Tools and Resources available

AB Power Inc.September 2012

S. No. Work Flow Change Tools and Resources Available

1 All sub-suppliers to be notified of the banned chemicals.

Material datasheets of replacement chemicalsNew QA/QC procedures

2 All key accounts, distributors and sales personnel to be notified about product changes.

Technical catalogues and specification

working principle animationprice lists

stock levels

3 Pricing tool to be revised to include new duty and tax New pricing tool calculator available for download from

intranet

Process Owners and Steering Teams

AB Power Inc.September 2012

S. No. Work Flow Change Process Owner

1 All sub-suppliers to be notified of the banned chemicals.

Global Purchasing Team

2 All key accounts, distributors and sales personnel to be notified about product changes.

Product Portfolio ManagerGlobal Business Manager

Operation Team Alpha

3 Pricing tool to be revised to include new duty and tax Local Commercial ManagerLocal IT

Critical Deadlines

AB Power Inc.September 2012

S. No. Work Flow Change Target Complete Date

1 All sub-suppliers to be notified of the banned chemicals.

28-02-2013

2 All key accounts, distributors and sales personnel to be notified about product changes.

31-12-2012

3 Pricing tool to be revised to include new duty and tax 05-10-2012