Osmonics Profiles

8/12/2019 Osmonics Profiles

1/15

Prepared at the Request of Counsel; Privileged and Confidential 1

smonics Profile

Attract ive Segm ents and Techno log y

TECHNOLOGIESPPLICATIONS GE OPPORTUNITY

Household

PRODUCT GROUPS

Filtration/Separation

Process Equipment Standardized SkidsCustomized Skids

Generally low flow in:

Power

Beverage

Pharmaceutical

Medical

Muni (low flow)

Serving installed base

Products complementGEWTDiversify marketexposure

Attractive technologies

RO, UF, NF

Desalination

Ozonation

New membranesimprove performanceand lower operatingcosts

Membrane ElementsCartridge Filtration

Low and High FlowProducts in:

Power

Beverage

Healthcare

Oil & Gas

Recurring revenue fromconsumables

Utilize GE Betz customertouch points

Differentiatingtechnologies

RO, UF, NF, MFCross-Flow Membranes

Desalination

Chemically stableRO/NF membranes

Lower energyrequirements for RO

Multi-Port Valves andControllers

Membranes/CartridgeFiltration

35%31%

23%

11%Muni

Healthcare

Power &Indus

Food & Bev

Household31%

57%

Power &Indus

Others - 12%

23%

40%7%

Others -15%

Healthcare Power &Indus

Food & Bev

Point of Entry(Softeners)Commercial/Residential

Point of Use(Filtration)

Industrial (certainvalves)

Improved competitivepositioning of GESmartWater

Recurring revenue fromconsumables

Attractive

technologiesTanklessRO, salt less softener

Chlorine tolerant RO

Tankless RO system

Higher efficiency ROmembranes

Lower cost RO elements

Flapper valvetechnology

Group Sales: 73.0

Group Sales: 83.2

Group Sales: 51.3


2/15

Filtration & Separation Group Overview

2001 Group Sales: 83.2M, Operating Margin: 7.5M

Produces membranes and filter media used in crossflowmembrane elements and filter cartridges

Two key technologies:

Membranes: based around the creation of a microporousmembrane structure which is then converted into an element

Cartridge filters: based around the creation of a microfiber andmicroporous membrane which is then converted into acartridge

Over 95% of the sales are replaceable products which havea useful life varying from a single use up to 3 - 5 years

Filtration & Separation Group


3/15



Pure Water Crossflow

Filtration process that treats:

Water that has been affectedby an animal, machine orhuman developed processes

Fluids from foods, animals,plants

Wastewater

Filtration process that treats:

Water that comes fromnature or that is potable

Process Crossflow


4/15


5/15

Filtration & Separation Group Strategy

Grow through market/application segmentation and breakthrough products

Leverage core competencies of basic material science, fluiddynamics, and application know-how Knowledge Hub

Remove cost and variability from product and businesstransactions

Re-define channels to market through direct end-userrelationships



6/15

Key Markets Served

Market Application Selected Customers

Food &Beverage

ADM, Cargill, Danone(France), Coke, Pepsi,Gallo, GEA-NIRO, AlphaLavall (Sweden), APV(Denmark), AmyLum (UK)

Power &Industrial

Ford, Valspar,DaimlerChrysler,UT / Pratt Whitney,Nexen Petroleum, Safety-Kleen, Kodak, GeneralMotors, Exxon, FMC


Water systemfiltrationOily waste recovery& re-usePaint & ink filtrationPlating bathfiltration & recycling

Oil & gas productionseparation & filtrationElectro deposition paintstabilization & waterrecycle

Acid processing andreclaim

Water systemfiltrationCritical bottledwater filtrationWine clarification &concentration

Cheese wheyfractionationHigh fructosesweetener filtration &concentration


7/15

Municipal

Sidmas andSWCC(Saudi),

City of Clifton, COTorrington, WY


Key Markets Served


Water filtration& treatment

Surface waterpretreatment

Seawater desaltingGround water

testing & analysis

Healthcare

Merck,Sigma-Aldrich,Pfizer, Medivators,Fischer Scientific,Schering-Plough,Novartis(Switzerland),Bayer (Germany)

Water systemfiltrationBio serum filtration

Medical diagnostickits

Transfer of DNAHPLC / ClarificationDialysis final filtration


8/15

Electronics

Shipley, Seagate,Cabot Microelectronics,Nomura (Japan),Fairchild SemiConductor, AMD

Household

Good WaterWarehouse, Fileder(UK), HarringtonPlastics


Key Markets Served


Water sedimentremoval

Distribution ofstandard products

Water systemfiltrationPhoto resist /

stripper filtration

Printed circuitboard processingfiltration

Wafer polishingslurry filtration


9/15

2001 Sales By Market

Food & Bev28% / $23.3

Healthcare17% / $14.0

Electronics5% / $4.2

Municipal5% / $4.2

Household5% / $4.2

Power &Industrial

40% / $33.3

2001 Sales By Geographic Region

US/Canada65% / $54.1

Americas5% / $4.2

Euro/Africa20% / $16.6

Asia/Pacific10% / $8.3

Total 2001 Sales = $83.2M

Markets Served


Fil i & S i G


10/15

Membrane Elements - Pure Water Crossflow

Products include reverse osmosis,nanofiltration and ultrafiltrationmembranes and elements forcommercial and industrial waterpurification

Key applications include purification ofwater for drinking, commercial andindustrial process uses, and seawatersoftening and desalting

Core technologies include PA, CA, andproprietary 3 layer membranes,specialty polymers, and uniqueelement designs

Key features include high reliability andperformance, with market specificdesigns and pricing, high temp ROproducts and low fouling three layermembranes

Osmonics machine base: Coca Cola Fresenius

Replacement for 3rd party machinessold through distributors: Pentair Ecolab

to end customers: Intel Pepsi

OEMs using Osmonics components: US Filter Ionics

CustomersProduct Overview


Filt ti & S ti G


11/15

Products include RO, NF, UF and MF productswhich utilize unique membrane and elementconstruction for filtration and separation ofprocess fluids

Applications include food and dairy separations,product reclaim, waste minimization, oily waterrecovery

Core technologies include proprietary three layermembranes, specialty polymers, hydrophilic PANUF membranes, PS and PVDF membranes;utilize unique and robust element construction

Key features include high reliability andperformance in extreme operating environmentsinvolving high temperatures, low and high pH,high viscosity, high suspended solids, solvents,and aggressive cleaning

GEA NIRO APV Nordic (Denmark) ADM

Eastman KodakCargillFMCDaimlerChrysler

Alcoa

General MotorsV-QuipTetra Pak

Product Overview Customers

Membrane Elements - Process Crossflow


Filt ti & S ti G


12/15

Cartridge Filters - Depth

End users such as:

Cabot Microelectronics

Valspar

Nexen Petroleum

Distributors such as:

Harrington Industrial Plastics

Private label customers such as:

USF / Plymouth Product

Cuno

Serfilco

Products include a full line of fluidcartridge filters which removeparticles by entrapment throughout

the depth of the media Applications range from sedimentremoval in water, pre-reverseosmosis and other water filtrationto high end applications such aswafer polishing slurry filtrationCore technologies include meltblown polymer micro-fiber andresin bonded fiberglassKey features include highefficiency, purity, long life and dirt

holding capacity





13/15


Specialty Separation Systems


Products include standard & custommachines and systems for application ofcrossflow membranes to process fluidstreams (WasteWizard & Mini Wizard)Key applications are industrial metalworking fluids, including: Alkalinecleaners, mop water, vibratory finishingcleaning and synthetic coolants

Core technologies includes patentedhydrophylic PAN membrane andpatented vortex crossflow machines

Key features include ability to operate inheavy solids and high concentrations ofoil

Safety-Kleen

Pratt-Whitney

Delphi AutomotiveGeneral Electric

General Motors



14/15

Additional Growth Opportunities

Potential ResultsOpportunity

Develop businesses in areas suchas acid recycling and otherindustrial fluids. Potential to sellthousands of standard units inapplications of over $10M/yr

Development of small Point ofUse specialty systems forapplications beyond oily waste,thus tapping into volume potentialof a broad market

Growth in high volume applicationresulting in new economical

applications

Development of non-spiralmembrane devices for application

in unconventional areas with lowerfabrication costs

Penetrate market share ofconventional filters with an easy touse high capacity device

Development of a capsule-likedevice with characteristics of anormal filter and a crossflowmembrane element



15/15

Osmonics Profiles

Documents

Transcript of Osmonics Profiles