Messer in compressed form 1_48
Short profile: Messer in brief Company Messer is the largest owner-managed industrial gas company in the world. Products Messer manufactures and supplies oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium, shielding gases for welding, speciality gases, medical gases and food gases as well as many different gas mixtures. Customers Almost all industrial sectors as well as healthcare and science and research benefit from our products and application technologies. 2_48
The beginning and rapid growth Evolution into a global enterprise The way forward, back into family ownership 1898 Adolf Messer founds Frankfurter Acetylen- Gas-Gesellschaft Messer & Cie. in Hoechst as a manufacturer of acetylene generators and lighting appliances 1903 Ernst Wiss develops the first hydrogenoxygen cutting torch at Griesheim- Elektron. This is followed by equipment and machinery for oxy-fuel welding and cutting 1908 The first oxygen plant opens at Chemische Fabrik Griesheim-Elektron 1965 Hans Messer founds Messer Griesheim GmbH. Merger of Adolf Messer GmbH with parts of Knapsack-Griesheim AG belonging to Hoechst 1966 Expansion into Western Europe and North America 1990 Expansion into Eastern and Central Europe 1995 Entry into China and rapid expansion The passion for air runs in the family 2001 Goldman Sachs Funds and Allianz Capital Partners buy up Hoechst (Aventis) shares 2004 Founding of Messer Group GmbH. Messer is once again wholly owned by the Messer family 2005 Ownership of the welding and cutting division passes back to the Messer family 2006 Sales exceed one billion euros for the first time: Messer and Messer Eutectic Castolin. Expansion of activities in Europe and Asia 2008 Messer Industriegase GmbH is founded in Germany 2011 Move to new joint company headquarters in Bad Soden 2014 Tenth anniversary of Messer Group GmbH 3_48
If you work with volatile substances, you need enduring values Customer orientation We are focused on the individual requirements of our customers and we help them to improve their competitiveness and performance. Corporate responsibility By managing our resources responsibly and applying the talents of our employees, we add to the value of our family firm in the long term. Mutual trust and respect We believe that cooperation is based on dependability, sincerity, transparency and frank communication. We respect and abide by the cultural and social customs of the countries in which we work. Excellence Our actions are based on technical expertise, innovation, flexibility and the ability to make quick decisions. Employee orientation We train, develop and encourage motivated and efficient employees with integrity. We expect our people to be resourceful and responsible team players. Responsible behaviour We take our responsibility towards our employees and society in general very seriously. 4_48
If you work with a vital substance and earn your living with it, you inevitably bear a special responsibility. Keeping the world afloat We are committed to: Measures to improve work safety Measures to protect the environment Measures to optimise energy efficiency Measures to ensure sustainable trade Supporting social and community projects 5_48
Messer is more than you expect 6_48
Total sense of responsibility plus total entrepreneurship in one man Stefan Messer CEO of Messer Group GmbH Stefan Messer s roles include Chairman of the International Oxygen Manufacturers Association (IOMA), Washington Vice President of the Frankfurt Chamber of Industry and Commerce (IHK) Member of the Presidential Board and Board of Management of the German Asia- Pacific Business Association (OAV) Honorary Senator of Darmstadt University of Applied Sciences and Goethe University Frankfurt/Main Honorary Consul (Republic of Slovenia) Making a profit is important to us, but it s not the be-all and end-all. It s just as vital to be independent and to turn our own ideas into reality. Stefan Messer, CEO and owner of the Messer Group 7_48
Teamwork all the way to the top: The management of the Messer Group 8_48 Stefan Messer Owner and Chief Executive Officer of the Messer Group Dr. Hans-Gerd Wienands Chief Financial Officer of the Messer Group
From left to right: Optimal division of responsibilities: The extended management of the Messer Group Dr. Uwe Bechtolf Controlling / Accounting & Strategy Johann Ringhofer Engineering & Production Stefan Messer Chief Executive Officer Dr. Hans-Gerd Wienands Chief Financial Officer Adolf Walth Sales & Marketing Europe 9_48
From left to right: Ready to meet any challenge: The Supervisory Board of the Messer Group Dr. Karl-Gerhard Seifert Dr. Werner Breuers Peter Wilhelm Storm van s Gravesande Dr. Bodo Lüttge Dr. Nathalie von Siemens Dr. Jürgen Heraeus Chairman 10_48
We make the most out of air More than 100 years of expertise in industrial gases More than 60 air separation units worldwide Our Gases for Life products are just as important as water and electricity. We separate air into its three main components nitrogen, oxygen and argon as well as the noble gases xenon and krypton. We process and store these gases in liquid or gaseous form. We supplement them with other gases from natural or industrial sources. 11_48
We do this all along the line Air separation unit Products Sales Customer segments Argon, speciality gases 1 % Oxygen 21 % Cylinders 25 % Others 8 % Automotive Construction Environment Food and beverages Industry, production and manufacturing Medicine and pharmaceuticals Metallurgy / steel, iron / glass and ceramics Nitrogen 78 % Bulk 37 % Pipeline, on site 30 % (Petro)chemicals, rubber, plastics Welding and cutting 12_48
We ve been doing it from the outset: In Europe Denmark Russia Lithuania Estonia Latvia Poland Netherlands Air separation units in Europe Existing air separation units Air separation units under construction or planned Portugal Spain Belgium France Germany Czech Republic Austria Slovenia Switzerland Croatia Bosnia- Herzegovina Montenegro Slovakia Romania Hungary Serbia Albania Ukraine Bulgaria Macedonia 13_48
...as well as in China, Vietnam and Peru Peru China Vietnam Air separation units in China, Vietnam and Peru Existing air separation units Air separation units under construction or planned Anning Yuxi Xichang Chengdu Panzhihua Kunming Haikou Chongqing Leshan Xiangtan / Hengyang Yangjiang Shunde Foshan Zhangjiagang Wujiang Shanghai Ningbo / Shaoxing 14_48
And we do a lot more besides Welding and cutting gases Speciality gases Medical gases Food gases Shielding gases for welding and highly developed welding gas mixtures TIG, MIG and MAG welding Forming Laser cutting Our wide range of speciality gases Liquid helium for cooling superconducting magnets in MRI scanners High purity gases for analytical processes Custom-made calibration gases Medical gases for clinical treatment Anaesthesia Pain management Diagnosis Respiratory therapy Surgery Pure gases and gas mixtures under the Gourmet brand Cryogenic freezing Transport refrigeration systems Modified atmosphere packaging System solutions to optimise mixing and kneading processes Krypton for insulating glass panels Cryotherapy Krypton-xenon mixture for halogen lamps Biobanks 15_48
In detail: Welding and cutting gases Shielding gases for welding are sold under standardised, Group-wide names which are based on the materials being worked: Ferroline for plain and low-alloy steels Inoxline for high-alloy steels and Ni-based alloys Aluline for aluminium and non-ferrous metals Other welding and cutting gases Forming gas protects the back of the weld against oxidation Lasline for processing laser material and generating the laser beam Nitrocut and Oxycut laser cutting gases Fuel gases for oxy-fuel technology 16_48
In detail: Food gases Gourmet is the brand name under which Messer supplies pure gases and gas mixtures for the food industry. Gourmet gases satisfy the highest quality standards. Gourmet gases conform to all European food regulations as well as all HACCP (Hazard Analysis and Critical Control Points) requirements. Examples: Gourmet C: Carbon dioxide, e.g. for carbonating beverages Gourmet N: Nitrogen, e.g. for freezing, cooling and packing food Gourmet O: Oxygen, e.g. for packing fresh salads Gourmet A: Argon, e.g. for inerting to protect wine 17_48
In detail: Speciality gases Messer offers an extensive range of pure gases, standard mixtures and (on request) individual gas mixtures produced to each customer s specification. Liquid helium (in dewars) High purity gases (argon, helium, oxygen, nitrogen, etc.) Noble gases (krypton, xenon, neon) Standard mixtures (argon/methane, laser mixtures, etc.) Custom-made mixtures (calibration gases) Laboratory gases (pressure cans, gas repurification systems, isotopes, etc.) Hydrocarbons (methane, acetylene, ethylene, etc.) Carbon monoxide Inorganic gases (ammonia, chlorine, sulphur dioxide, etc.) Refrigerants Gases for the electronic industry (e.g. semiconductor manufacturing) 18_48
In detail: Medical gases The most important medical gases at a glance: Oxygen Nitrous oxide Carbon dioxide The most important areas of expertise, where medical gases are used: Anaesthesia Intensive care/emergency medicine Pulmonology Further medical gases are amongst others: Argon Gas mixtures Helium Air Nitrogen Nitric oxide in nitrogen 19_48
In detail: Medical gases In addition, medical gases are used in the following areas of expertise: Occupational medicine Biobanks/cryobanks and research institutes Surgery Dermatology Rheumatology Sports medicine Toxicology Veterinary medicine Dentistry Diabetology Gynaecology Haematology Cardiology Neonatology Ophthalmology Otorhinolaryngology 20_48
In detail: Pharmaceutical industry gases Gases for the pharmaceutical industry Messer s Pharmaline range includes specially tested gases that are geared to the needs of the pharmaceutical industry. They are designed to help manufacturers of medicinal products comply with the stipulations of EU Directive 2001/83 and adhere to GMP (good manufacturing practice) guidelines. Messer bases the manufacture of Pharmaline products on the latest IPEC 1 guidelines and EXCiPACT 2 standards. 1 IPEC International Pharmaceutical Excipients Council, The Joint IPEC PQG Good Manufacturing Practices Guide for Pharmaceutical Excipients, 2006 2 EXCiPACT a voluntary international certification scheme, Certification Standards for Pharmaceutical Excipient Suppliers, 2012 The most important gases and applications: Pharmaline A: Argon (Ar), e.g. for inertisation Pharmaline C: Carbon dioxide (CO 2 ), e.g. for the production of drugs in powder form Pharmaline N: Nitrogen (N 2 ), e.g. for packing in modified atmosphere Many more, highly diverse applications exist for gases in the pharmaceutical industry in addition to those mentioned here. 21_48
Genuinely good solutions will always be in demand 22_48
Where we are in Europe Our locations in Europe Albania Belgium Bosnia-Herzegovina Bulgaria Denmark Germany Estonia France Croatia Latvia Lithuania Macedonia Montenegro Netherlands Austria Poland Portugal Romania Russia Switzerland Serbia Slovenia Slovakia Spain Czech Republic Ukraine Hungary 23_48
Where we are in Asia, Algeria and Peru Largest owner-managed industrial gas company in the world More than 120 sites of our own 60 companies in 31 countries Competence centres in Europe and Asia 24_48
We supply gas just the way you need it 25_48
Four paths, one goal: The right solution for each customer Safe solutions for small jobs: Cylinders or cylinder bundles 1,200 local distribution partners or direct from the filling plant Efficient solutions for medium-sized jobs Storage tank on site with gas supply from a road tanker Small dewar solution, supplied by Messer service vehicles Optimised solutions for large jobs: Gas production at the customer s site Air separation units PSA, VPSA or membrane plants Hydrogen and synthesis gas production facilities Perfect solutions for the biggest jobs of all: Pipeline systems with a direct connection to the business park or bulk consumer 26_48
We make the gases life can t do without 27_48
Key industries rely on them: Gases for Life by Messer Metalworking Shielding gases for welding as well as gas mixtures for material processing and finishing, thermal spraying, laser welding and cutting or MAG welding of plain steels Automotive Gases for xenon headlamps, airbags, air conditioning systems, tyres, emission control or cleaning Glass and ceramics Oxygen for firing and manufacturing glass or ceramic products Chemicals, rubber, plastics Gases for processing, finishing and recycling plastics or for us in the rubber producing industry Construction Liquid nitrogen to cool fresh concrete and cement prior to use or ensure optimal ground stability for drilling and boring operations 28_48
Key industries rely on them: Gases for Life by Messer Medicine and pharmaceuticals Ultra high purity gases for a wide range of medical applications, as drugs or medical products or for use in the pharmaceutical industry as process aids or inactive ingredients Research Ultra pure and laboratory gases, test gases, process gases and gas mixtures for research institutes, universities and development centres Microtechnology Filling or shielding gases in tablet displays or processor circuit boards Environmental technology Technologies and gases for use in wastewater treatment plants, at recycling centres or for waste gas cleaning in large-scale industrial plants Beverages Carbon dioxide puts the fizz into drinks such as lemonade or beer and extends their shelf life Food Gases to create a modified atmosphere which keeps food naturally fresh in its packaging 29_48
Maximum concentration for new ideas in all areas Cold grinding / recycling Cold grinding Recycling Cryogenics Welding & cutting MAG welding TIG welding Thermal cutting Thermal spraying Krefeld Germany High temperature processes Melting processes in metallurgy Heat treatment Glass production Food / pharmaceuticals Cooling and freezing Transport refrigeration Inertisation / packing High pressure extraction processes Spraying processes Gumpoldskirchen Austria Mitry-Mory France Budapest Hungary Chemicals / paper / environment Water treatment High pressure extraction processes Spraying processes Welding & cutting MAG welding TIG welding Thermal cutting Thermal spraying 30_48
Maximum concentration in Asia Welding & cutting Shielding gases for welding Food Cooling and freezing Transport refrigeration Metallurgy / burning Melting processes in metallurgy Glass production Chengdu China Nanjing China Industrial CO 2 purification Purification with dry ice and dry ice snow 31_48
Adding value by valuing others 32_48
Our success has 5,354 faces We are a genuine family-run firm with 5,354 employees worldwide. Our people represent the foundation for our success and the future of our company. Together we generated consolidated sales of more than 1,166 million in 2015. Individual development is a key priority Basic principle: If you have the courage to aim high, we ll give you the freedom you need to achieve your goals. Programmes: Differentiated qualification and continuing professional development programmes Training programmes International staff exchange programmes Individual support programmes Individual career planning 33_48
Good staff are crucial wherever we are Employees by region: Employees by activity: 2015 5,354 employees worldwide Peru 2 % Corporate Office 3 % 2015 Application Technology 2 % Western Europe 16 % South-East Europe 25 % Logistics 16 % Production 30 % Sales & Marketing 15 % Asia 40 % Central Europe 14 % Filling 18 % Administration 19 % 34_48
Sales and workforce size for us they go hand in hand Sales Million EBITDA Million EBITDA margin in % Investments Incl. IFRIC4 in million Employees Employment contracts* 2013 1,027 2013 231 23 2013 197 2013 5,404 2014 1,047 2014 241 23 2014 205 2014 5,449 2015 1,166 2015 252 22 2015 142 2015 5,354 * As at 31 December 2015 35_48
Messer sales breakdown, Part 1 Sales by region: EBITDA by region: 2015 1,166 million overall Peru 16 Corporate Office 7 2015 252 million overall Peru 2 Corporate Office 11 Western Europe 349 South-East Europe 184 Western Europe 52 South-East Europe 49 Asia 418 Central Europe 192 Asia 101 Central Europe 37 36_48
Messer sales breakdown, Part 2 Sales by segment: Sales by industry: 2015 Medical gases and accessories 4 % 2015 Gas, water, wastewater, waste 2 % Electrical, electronics 5 % Competitors 5 % Hardware and others 7 % Cylinder gases 24 % Health services 5 % Food, beverages and tobacco 6 % Metal, glass, ceramics 33 % Others 23 % Pipelines / on-site 30 % Bulk 35 % (Petro)chemicals, rubber plastics 10 % Engineering, metalworking, automotive 11 % 37_48
Continually seeking to improve: Our expected growth rates until 2019 Western Europe 3 % China and Vietnam 2 % Central Europe 2 % South-East Europe 2 % 38_48 Average growth rate for the Messer Group: approx. 2 %
A whole world for more opportunities: Messer World 39_48
Our world is clearly structured: The Messer World organisational chart Owners Adolf Messer Foundation / Messer family 100 % 100 % Companies Messer Industrie GmbH MIG Holding GmbH 100 % Messer Medical Home Care Holding GmbH MEC Global GmbH Messer Holding GmbH MEC Acquisitions GmbH 100 % MEC Employee II GmbH Stefan Messer Management Messer Group GmbH CEO S. Messer CFO Dr. H.-G. Wienands MEC Holding GmbH CEO S. Schabel CFO Dr. W. Schmitz 40_48 Brands
All the ingredients for a holistic solution: Messer, Messer Eutectic Castolin and their brands Everything under one roof the Messer World is a one-stop shop where Messer and Messer Eutectic Castolin s customers and partners will find many familiar brands: ASCO Carbon Dioxide is a provider of individual and complete CO 2 solutions. BIT develops and manufactures in-vitro diagnostic medical devices. Castolin Eutectic is the world s leading provider of products and services linked to the maintenance, repair, servicing and wear protection of industrial plants and factory equipment. Cryogenic Engineering is a joint venture between the Messer Group and Hangzhou Hangyang (China), the premier manufacturer of production plants. Messer Cutting Systems is a global supplier of flame cutting machines for thermal steel cutting Messer Group is the world s largest owner-managed specialist for industrial gases. Messer Medical Home Care Holding develops products and services to enable patients to be looked after in their home environment. Spectron Gas Control Systems specialises in gas supply systems. 41_48
Strong group, good figures MEC Group sales by region in million : MEC Group workforce size by region as at 31 December 2015: 2015 534 Western Europe 144 South America 4 Africa & Middle East 11 Eastern Europe 29 Asia 27 China 32 2015 2,849 South America 37 Western Europe 708 Africa & Middle East 102 Eastern Europe 220 Asia 193 Japan 34 China 233 Japan 180 Germany 110 North America 143 Germany 569 North America 607 42_48
Part of the Messer World: ASCO CARBON DIOXIDE Ltd. Provider of individual and complete CO 2 solutions CO 2 solutions CO 2 production plants CO 2 recovery plants CO 2 storage tanks, both stationary and transportable CO 2 ancillary equipment and accessories: Transfer pumps, vaporisers Detectors, flowmeters CO 2 testers Dry ice: Dry ice production centres, pellets, discs and blocks ASCOJET dry ice blasting units and accessories 43_48
Part of the Messer World: Castolin Eutectic The worldwide leader for wear protection, protective coatings and repair and joining technologies using welding, brazing and thermal spraying Our capabilities: Maintenance and servicing technologies Industrial surface protection Manufacture of high-performance components Castolin Services workshops specialising in welding repairs, wearfacing and anti-wear coatings Special product packages for complex applications in key industries (oil and gas, steel, power generation, etc.) Extensive product range for thermal spraying, welding and brazing 1,614 employees in over 35 countries, including more than 550 highly qualified engineers and application specialists in field / customer service 44_48
Part of the Messer World: Messer Cutting Systems Products and services for the metalworking industry, spanning everything from welding, cutting and brazing to annealing Product portfolio: Oxy-fuel, plasma and laser cutting machines From hand-guided machines to special purpose machines for the shipbuilding industry Integrated material handling systems provide increased efficiency Spare parts, repairs, modernisation, maintenance and servicing as well as innovative environmental technologies Our CNC controls and software solutions allow the machine to be integrated into the customer s software environment Full-service strategy and on-site customer service worldwide combined with comprehensive practical training on systems and techniques Approximately 900 employees in more than 50 countries 45_48
Part of the Messer World: Spectron Gas Control Systems A gas supply systems specialist that prides itself on providing the highest level of service, quality, reliability and technological expertise Product portfolio: Extensive product family from simple valves to gas cylinder cabinets for semiconductor gases as well as matching valves and accessories for a wide range of gases Alarm and control systems for gas applications Purification systems to improve or secure the purity of the gases Production facilities in Germany, the UK and China (Shanghai) 46_48
Part of the Messer World: BIT Analytical Instruments Developer and manufacturer of diagnostic medical devices for laboratories and hospitals Product portfolio: In-house expertise, know-how and systems in the fields of haematology, clinical chemistry, immunoassays, coagulation, life sciences, infectious diseases, microbiology, molecular diagnostics and genetics Global development of in-vitro diagnostic devices Production on three continents Lifecycle support from development to obsolescence management Worldwide after-sales service, support and spare parts Highest quality standards, certification to ISO 13485 and FDA 21 CFR 820-30 Around 340 employees at facilities in Germany, France, China, Japan and the United States, over a third of whom are engaged in development work 47_48
Part of the Messer World: Cryogenic Engineering A joint venture between the Messer Group and Hangzhou Hangyang (China), the premier manufacturer of production plants Air separation units for the production of oxygen, nitrogen and argon Cryogenic generators for nitrogen and oxygen Components for air separation units Pressure swing adsorption and membrane units for oxygen and nitrogen production We apply our know-how to develop air separation units that precisely meet our customers requirements. We also make sure their plant operates as efficiently as possible. 48_48
Part of the Messer World: Messer Information Services (MIS) The service company for Messer and MEC information technology From the computer centre in Gross-Umstadt, MIS makes its services available centrally to some 4,500 Messer and MEC users worldwide. MIS provides IT applications to support the highly diverse and complex requirements that exist within the Messer World. Amongst other things, 77 employees and one trainee are responsible for the ongoing development of process-optimised software programs and ensuring secure, high-performance computer centre operations. 49_48