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Agenda

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Create the future – Vacon targets, strategy and vision Vesa Laisi, CEO and President

Vacon 20/20 Capital Markets Day, 28 Nov 2013

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Disclaimer

● The content of this presentation contains time-sensitive information that is accurate as of the time hereof.

● A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.

● If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.

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Demand for AC drives is driven by global megatrends

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Total Market Outlook 2020

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We have four fundamental strategic choices

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100% focus on low and medium

voltage drives and inverters

Multi-channel sales

Multiple customer industries

Competitive advantage is based on 100% focus on AC drives

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We grow faster than the market and with solid profitability

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Our growth initiatives

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Our drivers for profitability

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The Vacon vision

We see that true value is created together. That is why we will create The Drives Family where the best people work together to develop the best products, applications and services for our customers. Vacon will be a company that brings together personnel, customers, partners, suppliers, shareholders, scholars and students – all the people who are Driven by Drives. We grow faster than the market and with solid profitability. This allows us to invest in the future growth and to share the value within The Drives Family.

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Accelerated growth through new initiatives Heikki Hiltunen, EVP, Market Operations

Vacon 20/20 Capital Markets Day, 28 Nov 2013

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Disclaimer

● The content of this presentation contains time-sensitive information that is accurate as of the time hereof.

● A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.

● If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.

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Total Market Outlook 2020

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Market outlook solid for motor drives 2011–2017

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Channel selection optimized country by country

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Underlying megatrends driving the growth for Vacon AC Drives

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Competitive landscape

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Growth initiatives

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Vacon growth initiatives - market operations

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Vacon 11

Cloud based services – opening up the opportunities for application and SW sales

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Vacon sales & marketing – driving growth towards 2020

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Focus on broad portfolio and effective operations Jukka Kasi, Executive Vice President, Product Operations

Vacon 20/20 Capital Markets Day, 28 Nov 2013

Disclaimer

● The content of this presentation contains time-sensitive information that is accurate as of the time hereof.

● A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.

● If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.

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Vacon 3

Regional production is supported by best cost country sourcing

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Our current production capacity enables growth to 700 MEUR

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Mass-customization is crucial to manage complexity

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Broad offering based on common technology

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Suppliers – key players in The Drives Family

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PCBA, semiconductors and inductive material – the main reasons for success

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Broad product portfolio to meet diversified customer needs

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Our growth initiatives

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Entering system drives business

● With 20 years of experience in the AC drives business, Vacon has now developed a Vacon System Drive, making Vacon one of the key players in the enclosed drives

● Easy to use for System

Integrators, our products allow them to bring more value to customers

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Our initial focus in system drives

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Entering the medium voltage drives business Dan Isaksson, Vice President, Medium Voltage Drives

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Disclaimer

● The content of this presentation contains time-sensitive information that is accurate as of the time hereof.

● A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.

● If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.

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Entering medium voltage drives business In a good position to capture MV drives growth

● Competitive advantage through established strategy

● Leverage know-how of AC drives and applications

● Leverage existing offering and technology

● Sales, marketing and service globally for existing and new customers

The medium voltage market is growing

Initial market focus in medium voltage drives

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Growing faster than the market with solid profitabilityPia Aaltonen-Forsell, CFO

Vacon 20/20 Capital Markets Day, 28 Nov 2013

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Disclaimer

The content of this presentation contains time-sensitive information that is accurate as of the time hereof. A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Vacon.If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Vacon will not be reviewing or updating the material that is contained herein.

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Total Market Outlook 2020

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Revenues and EBIT-% without one-time items

*) 2012 Ebit margin, % restated

We will retain our sales margin with cost efficiency and right positioning in the market

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We will retain strong profitability and maintain our growth ability

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R&D investments crucial for ourfuture growth

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Capex has varied between 3.5%–6.5% of revenues

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We have room to improve

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Improved inventory turnover and delivery capability

Working capital efficiency target below 11%

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Our strong balance sheet givesus flexibility for the future

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We develop our operating model to ensure scalability and profitable growth

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IT to enable growth and efficiency

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Alliances and acquisitions can be used to boost time-to-market and growth

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We grow faster than the market and with solid profitability

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