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FOSS PRODUCTION AND DEVELOPMENT IN CHINA

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FOSS ANALYTICAL, SUZHOU

”Foss Scino (Suzhou) Co., Ltd” was established in August 2008, in Suzhou Industrial Park, 80 km West of Shanghai

New facility opened November 2012 o 6.000 Square meters o 140 employees o Turnover 2013 at 74 M RMB

Welcome to FOSS Scino (Suzhou) Co.,Ltd 欢迎来到福斯赛诺分析仪器（苏州）有限公司

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PRODUCTS AND FUNCTIONS

Complete product range of Chemical Analysis instruments for the global Laboratory market is now being supplied from FOSS Analytical, Suzhou – 2 brands Tecator and LabTec line

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o All functions established to support the

global market:

• Business Innovation

• Product Innovation

• Production and Supply Chain

• Customer Service and S. Support

• Regional Demo- and training lab

• In house service repair shop

o Future activities (2014)

• NIR products from Sweden

(More than 200 employees)

Dedicated Analytical Solutions

CHINA - THE PAST AND THE FUTURE OF A CHINESE SALES AND SERVICE ORGANIZATION Lau Diderichsen Senior Vice President | Sales & Marketing, Europe/Asia/Pacific

3 April 2014

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GROWTH IN TURNOVER (MUSD)

37,0

32,429,8

11,0

1,5

24,0

+23,8%

2013 2005 1998 2010 2011 2012

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FOSS – CHINA’S PAST

Late

1979 FOSS BUSINESS START WITH DISTRIBUTOR Major business was done via DANIDA projects in the dairy industry

1998 FOSS REPRESENTATIVE OFFICE IN BEIJING This office used to be the Representative office of Tecator in China Employees: 5

2000/2001 ESTABLISHMENT OF TWO NEW REPRESENTATIVE OFFICE

1) Shanghai

2) Guang Zhou

2003 FOSS CHINA ESTABLISHED Replacing representative office

2005 SIGNIFICANT GROWTH 33% CAGR since establishment of representative office

Employees: 30

2011 FOSS CHINA: A CHINESE COMPANY FOR THE CHINESE MARKET

2013 FOSS CHINA: 12% OF THE OVERALL SUBSIDIARY/DISTRIBUTOR TURNOVER Turnover 37MUSD

Employees: 74

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LOCATION OF OUR STAFF

Customer and Sales Support team: 33 Sales team: 32

2013

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DEDICATED TO THE FOOD & AGRICULTURAL INDUSTRIES

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MARKET SHARES

40%

60%

80%

20%

60%

40%

Chemical Analysis CMT Dairy

50% 50%

20%

80% 80%

20%

Feed & Forage Grain & Milling Meat

Other

FOSS

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FUTURE OF FOSS IN CHINA 3 YEARS FORWARD

The preferred supplier of analytical instruments within the Food/Agri industry.

Maintain our market shares within Dairy, CMT, CA and Meat markets.

Increase market shares within Feed & Forage and Grain.

Develop and promote our in/on-line solutions in China.

Increase turnover of After Sales service to 20% of the total turnover.

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FUTURE OF FOSS IN CHINA 3 YEARS FORWARD

“Think Global - Act Local” – Foss China, A Chinese Company for the Chinese Market.

Maintain the growth rate of >15%

Yearly turnover > 300 million RMB

Size of the company: approx. 90-100 people