Kendrion N.V General Meeting of Shareholders. Monday 18 April Agenda

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1 Kendrion N.V. General Meeting of Shareholders Monday 18 April 2011 Agenda 1. Kendrion at a glance highlights 3. Key figures for 2010 and financial objectives 4. Review of the business units 5. Financial position and dividend 6. European Commission fine 7. Corporate Governance 8. Priorities and outlook 2 1

Kendrion makes these intelligent actuators. Many things in life are only possible with electromagnetic components.

2 1. Kendrion at a glance 3 Electromagnetic solutions What have cars, busses, lifts, robots, soft drink dispensers and power stations in common? Electromagnets they magnetise the world! Honest craftsmanship for and by smart engineers. Kendrion makes these intelligent actuators. Many things in life are only possible with electromagnetic components. We solve problems around the globe with smart electromagnetic solutions. Our core values are: innovative, ambition, reliability, solution-driven, and global. 4 2

employees (including 200 temps) in 12 countries Turnover 2010: approximately EUR 220

breakdown of revenue of 2010 Industrial Magnetic Systems Process engineering Medical

stations Recycling Passenger Car Systems Automotive applications Hydraulic applications

Elevator drives Crane construction Machine tools Commercial Vehicle Systems Motor

3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,400 employees (including 200 temps) in 12 countries Turnover 2010: approximately EUR 220 million Listed company on NYSE Euronext's Amsterdam Market 5 Organisation Kendrion breakdown of revenue of 2010 Industrial Magnetic Systems Process engineering Medical technology Transportation technology Door lock switches Metering devices and filling stations Recycling Passenger Car Systems Automotive applications Hydraulic applications Industrial Drive Systems Medical technology Packaging machines Servo motors Robotics Elevator drives Crane construction Machine tools Commercial Vehicle Systems Motor cooling systems Air conditioning compressor drives Torsional vibration dampers Magnetic clutches and brakes Controllers Fire protection technology 6 6 3

Kendrion committed to being a high-performer in selected business units Mission Strategy

selected business-to-business niche markets and are market leader whenever possible To

spread To create operational and commercial synergy between companies in each business unit

4 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives To develop business units that have strong international market positions in selected business-to-business niche markets and are market leader whenever possible To develop leading positions in business-to-business niche markets and to reach geographical spread To create operational and commercial synergy between companies in each business unit To achieve efficiency improvements at the companies Organic growth > 10% ROI > 17.5% 7 Turnover development 8 4

Global activities Kendrion 9 Our core competences Experience in electromagnetism Dynamic further growth of specialist knowledge Kendrion Customer

5 Global activities Kendrion 9 Our core competences Experience in electromagnetism Dynamic further growth of specialist knowledge Kendrion Customer Innovation management excellence Cutting-edge green technology solutions Benefit from the cross-divisional know-how Identification with customer demands 10 5

Modular production and processes Low volume production Medium-sized series High volume production Clean room

international human rights within their sphere of influence and make sure that they are not complicit in human

right for collective bargaining and further advocate for the abolishment of all forms of forced labour, child

support a pre-cautionary approach to environmental challenges and undertake initiatives to promote greater

6 Modular production and processes Low volume production Medium-sized series High volume production Clean room technology End of line testing Environmental testing ISO 9001 ISO TS Innovative solutions from a single source! 11 Kendrion stands for the UN Global Compact principles Human Rights Companies shall support and respect international human rights within their sphere of influence and make sure that they are not complicit in human right abuses Labour Standards Companies shall safeguard the freedom of association and effective recognition of right for collective bargaining and further advocate for the abolishment of all forms of forced labour, child labour and the elimination of discrimination when recruiting and during employment Environment Companies shall support a pre-cautionary approach to environmental challenges and undertake initiatives to promote greater responsibility for the environment and encourage the development and diffusion of environmentally friendly technologies Anti Corruption Companies shall stand against corruption in all its forms, including extortions and bribery 12 6

7 Kendrion's strategy - A clearly defined profile of a multinational, fast-growing high-tech company - Building leading positions in business-to-business niche markets - Creating operational and commercial synergy between the business units - Ambitious growth targets (EUR 350 million in revenue within 2 years) - Strategic acquisitions, particularly in industrial operations - Further improvement of geographical distribution across continents - Stronger growth outside Europe (USA, China and India) - Strategy is set out in the "Summertime" Mid-term Plan ( ) highlights 14 7

8 2010 highlights (1) - Excellent year; organic revenue growth of 43% - Very strong fourth quarter (revenue up 46%); our highest net quarterly profit on record - Net profit for full year 2010: EUR 16.6 million (including a non-recurring tax gain of EUR 1.8 million) - Company has fully benefited from improved market conditions and innovative new products - Growth in all business units and all key markets (Germany, the USA and China) - Dependency on China increased in highlights (2) - Significantly improved cost basis thanks to measures implemented in the past ("Springtime") - Acquisition of Magneta (based in Aerzen, Germany) has boosted the company's revenue - Strong free cash flow (EUR 17.4 million) - New financing arrangement has been signed - Significant focus on innovation and flexibility - Great success of Dr. Wilhelm Binder Days - Strong order book 16 8

3. Key figures for 2010 and financial objectives 17 Key figures 2010 (x EUR 1 million) Q4 2010 4 Q4 2009 4 Revenue 58.9 40.4 EBITA from ordinary activities 6.6 2.4 Net profit 6.2 1.

9 3. Key figures for 2010 and financial objectives 17 Key figures 2010 (x EUR 1 million) Q Q Revenue EBITA from ordinary activities Net profit (x EUR 1 million) Revenue EBITA from ordinary activities Net profit = Including Kendrion Magneta since 1 March 2010 (revenue included in 2010 EUR 8.8 million) 2 = Excluding provision for "Springtime" plan (EUR 8.5 million) 3 = Including book profit on Vink (EUR 10 million) and provision for "Springtime" plan (EUR 8.5 milion) 4 = The quarterly figures are unaudited 18 9

10 Financial objectives Target Realisation 2010 Organic growth >10% per year 43% ROS >10% 10.9% ROI >17.5% 18.7% Solvency 30% 64.7% EBITDA/Interest-bearing debt < Free cash flow Healthy 105% of net profit Dividend 30% of net profit 40% of net profit 19 4a. Review of the business units 20 10

11 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: mechanical engineering, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in Germany, Switzerland, Austria, China and the US and agencies in Italy, France, etc. - Project business (70%) and standard solutions (30%) - Competitors: a large number of (usually smaller) niche players in Germany, Italy and the US - Fast-growing market in China Strong revenue growth in 2010 (24%), fuelled in part by strong rebound in German industry - Improved efficiency thanks to new production structure - More efficient utilisation of low-cost facility in Romania - Returns improved every quarter - Many new projects due to focus on growth industries (medical sector, energy efficiency) - International footprint (USA and China) is a major advantage - Expansion in China is a key focus 22 11

12 Customers 23 Products 24 12

13 Products 25 4b. Review of the business units 26 13

14 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Production site in Germany; international sales are coordinated through UK sales office - Acquisition of Magneta in Aerzen, Germany, effective 1 March Global market leader in permanent magnetic brake systems - Substantial project business (80% of revenue), in addition to services business (20% of revenue) - Innovative business unit with many new products - Competitors: limited number of players with revenues between EUR 10 million and EUR 50 million Strong organic revenue growth in 2010 (43%) - Improved efficiency thanks to "Springtime"; sharp increase in flexibility - Accelerated growth during the year - Growth driven mainly by revival in German machine-building industry (exports to China) - Other growth driver: innovative new products (ski lift, wind energy) - Acquisition of Magenta off to excellent start - Significant focus on expansion in China and USA (initial new contracts) 28 14

15 Customers 29 Products Permanent magnet brakes Electromagnetic spring applied brakes Electromagnetic clutches Electronic accessories Machine tools Industrial robots Industrial robots Medical applications Brake-Motor Drives Brakes for hazardous Automatic locations Brakes for hazardous Door Drives Elevators High Power Brakes and Magnets locations Elevators Cranes Cranes 30 15

4c. Review of the business units 31 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania and

16 4c. Review of the business units 31 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania and China - Primarily serves European Original Equipment Manufacturers (Daimler, Volkswagen (incl. Audi]) PSA) - Focus on energy efficiency, emission reduction, safety and comfort - Established strong position with high-quality electromagnetic valves for common-rail technology - Existing expertise can be extended to other markets (e.g. gasoline, off-road, trucks) 32 16

2010 - Strong organic revenue growth in 2010 (+62%), on the back of a revival in the German automotive industry - Growth across the entire product range and in all locations; large number of projects

17 Strong organic revenue growth in 2010 (+62%), on the back of a revival in the German automotive industry - Growth across the entire product range and in all locations; large number of projects - Leading position in electromagnetic valves for diesel engines is increasingly starting to pay off - New projects in USA in diesel engines; strong revenue growth expected in USA in 2-3 years - Priority given to innovations (technology radar) - Company follows trends in engine management (increasingly smaller engines, switchable units, fuel efficiency and carbon reduction) 33 Customers 34 17

Products Gear Shifts Headlights Regulation Linear Solenoid (Shiftlock) Linear Solenoid (Key lock) Linear Solenoid (Bi-Xenon) Solenoid with circuit board (Bi-Xenon) Differential Gear Motor Management

18 Products Gear Shifts Headlights Regulation Linear Solenoid (Shiftlock) Linear Solenoid (Key lock) Linear Solenoid (Bi-Xenon) Solenoid with circuit board (Bi-Xenon) Differential Gear Motor Management Electromagnetic Brake Electromagnetic Brake (Differential lock) 3/2 Directional Pneumatic Valve (EUV) 2/2 Directional Pneumatic Valve Common Rail injection systems Chassis Pressure Control Valve for Common Rail-Diesel injection (PCV) Volume Control Valve for Common Rail Diesel injection (VCV) High Pressure Valve for Common Rail Diesel injection (HPV) Proportional Solenoid (Shock Absorber) Transmission 2/2 Directional Solenoid Valve Camshaft Solenoid (VCT) On-off and proportional solenoid for slide valve (Ø28) Steering Pressure Control Valve for Steering 3/2 Directional Hydraulic Valve for Automatic transmission Pressure Control Valve for Automatic Transmission Switching Solenoid for Fan clutch / Visco clutch 2/2 Shift Valve for Motor Oil Control Rear Hatch Drive Bi-stabile permanent Solenoid Brake 35 Applications (1) Common rail injection systems Hatchback actuation Motor management Transmission Gear shifts Steering Chassis Differential gear Headlights regulation 36 18

19 Applications (2) 37 Applications (3) 38 19

4d. Review of the business units 39 General - Operations: components and total cooling systems for buses and coaches, trucks, special vehicles and generators - Global market leader in electromagnetic

20 4d. Review of the business units 39 General - Operations: components and total cooling systems for buses and coaches, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Sites in Germany, US, Mexico, Brazil and China - USPs are energy-efficiency and convenience - Increasingly a systems provider - Service business (approximately 50% of revenue) forms an important basis 40 20

21 Strong revenue growth in 2010 (+37%) - German bus market not yet back to pre-crisis levels - Growth driven primarily by Far East (China and Korea) - Continued focus on truck market in coming years - New product for truck market ("Terminator") successful in US market - New-market penetration for generators in 2010 (innovation) has been successful, generating substantial revenue - Start-up in India is proceeding according to plan; 100% delivery from new plant in Pune by mid Customers EvoBus 42 21

22 Kendrion LINNIG branches 43 Kendrion LINNIG main product groups Motor cooling Air conditioning Engine mounted products Electromagnetic fan clutch Angle gear box Electrical fan drive Control units Electromagnetic compressor clutch Tensioner pulley Deflection pulley Torsional vibration damper Mechanical engineering Auxiliary units Fire-prevention technology Electromagnetic clutch Electromagnetic clutch Pneumatic clutch Hydraulic clutch Eddy current brake 44 22

23 Kendrion LINNIG packaging bus application Electromagnetic fan clutch with angle gear box Torsional vibration damper Deflection pulley Electromagnetic compressor clutch Tensioner pulley Financial position and dividend 46 23

24 Financial position - Free cash flow for Q4 2010: EUR 7.5 million - Excellent free cash flow for full year 2010: EUR 17.4 million - Working capital is under control - Strong balance sheet (net debt at year-end 2010: EUR 5.2 million; solvency: 65%) - New five-year financing arrangement (EUR million) - Funds available for acquisitions > EUR 40 million 47 Dividend - Dividend policy: 30% of net profit - Optional dividend proposed for 2010: 40% (on account of the results, low debt and the lack of a dividend for 2009) - Dividend: EUR 0.59 per share 48 24

6. European Commission fine 49 European Commission fine - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel during period 1995-2002 -

25 6. European Commission fine 49 European Commission fine - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel during period According to three respected law firms, Kendrion stands a good chance of successfully defending itself before the General Court in Luxembourg - Kendrion made a provision of EUR 2.2 million - Public hearing took place on 9 March Court will likely render judgement 8-12 months after this hearing (or later) 50 25

7. Corporate Governance 51 Corporate Governance - No material changes in 2010 - New composition committees - Remuneration Committee Ms M.E.P. Sanders (Chair) and Mr S.J.

26 7. Corporate Governance 51 Corporate Governance - No material changes in New composition committees - Remuneration Committee Ms M.E.P. Sanders (Chair) and Mr S.J. van Kesteren - Audit Committee: Mr R.L. de Bakker (Chairman) and Mr H.J. Kayser - No material changes in corporate governance structure anticipated for 2011, but - Amendment of articles of association - More focus on Corporate Social Responsibility (CSR Board) - Yearly Corporate Governance Statement published on our website 52 26

8. Priorities and outlook 53 Priorities for 2011 - Four key themes (Flexibility, Innovation, Sustainability and Globalisation) - Further market segmentation by industry - Achieving our financial

27 8. Priorities and outlook 53 Priorities for Four key themes (Flexibility, Innovation, Sustainability and Globalisation) - Further market segmentation by industry - Achieving our financial objectives (in relation to costs and cash) - Expanding our business in Romania and India - Further expanding our European operations, even in a tight job market - Focus on green (energy efficiency, comfort and sustainability) - ERP project HORIZON (on schedule) - Review of strategic acquisitions (in Germany, China and the USA) 54 27

28 Outlook for Global uncertainty (in North Africa, southern Europe and China) - Year is off to a good start - Very strong order book - Operations remain strong; no sign of a decline - Investment significantly above depreciation level (ERP project) - Strong financial position - Revenue and results expected to increase 55 We magnetise the world! 28

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