2003 Annual Report - Enerflex

• Jiro Service 2003 revenue increased 25% over 2002, with screwcompressor refurbishment work emerging as an important new source ofrevenue.• Mechanical Service gained a foothold in the United States, with fivemechanics and trucks operating out of Odessa, Texas, supporting equipmentin the Texas - New Mexico region.2004 OutlookMarket conditions are expected to improve. It is anticipated that internationalmarkets, particularly in the Asian Pacific region, will be stronger than those inNorth America. Trends toward reduced maintenance spending, increasedcompetition, and challenges to Waukesha’s market dominance are expected tocontinue.For 2004, the Mechanical Service unit will seek to enhance revenue and marginsby building upon and diversifying supplier relationships to secure competitivedistribution and pricing advantages and to secure new product opportunities.Dedicated sales teams will be focused upon key customers and the unit will lookto expand its international business.Accountability at the division and branch levels of the unit will increase withindividual revenue, cost and operational goals for the year. To combat competitiveencroachment, and in keeping with the overall Enerflex philosophy of the “the rightpeople in the right places,” a renewed focus on employee retention and recruitmentwill be a priority for managers.An aggressive Pamco pricing structure is being introduced to our customers in2004 to help mitigate reduced customer spending in the North American marketand to retain and grow market share.Landré Ruhaak will look to capitalize upon its success with full service cogenerationmaintenance to expand the number of units under its care in 2004. Thedivision has plans to expand its reach through Europe, and to further leveragecross-divisional expertise to gain new contracts.Though facing increased competition in its market, Jiro Service anticipatescontinued growth in overhaul and refurbishment work, as demand for lowhorsepower screw compression grows.Enerflex 2003 Annual Report22