where we're going - Sauer-Danfoss

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COVER
Your Strongest Partner in Mobile Hydraulics

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CHANGE. It is an ever-present force in our
modern world. A variety of forces working independently to reshape our global
economy, our world’s population, and the very shape of our planet.
Keeping up with these changes requires powerful tools. Tools that push, pull,
propel, lift, and haul with the precision and efficiency only hydraulics can provide.
Sauer-Danfoss is a world-class provider of mobile hydraulics for the construction,
agriculture, and other off-highway vehicle markets — providing the power our
changing world needs to thrive.
A booming population and shifting dietary preferences of much of the globe require the
world’s farmers to squeeze more bushels out of every acre of farmland than ever before.
6.5M
PER
MONTH
WORLD POPULATION
There are 7 billion people in the world — and counting.
Each month the world adds 6.5 million people — roughly the number of people in
Hong Kong or Rio de Janeiro.
Source: U.S. Census Bureau

1950
30%
2000
47%
2025
60%
PERCENTAGE
OF WORLD
POPULATION
LIVING IN CITIES
URBANIZATION
Growing cities. Growing needs.
In 1950, three out of 10 people lived in cities. By 2025, six out of 10 will.
Sauer-Danfoss hydraulics and electronics enhance construction equipment used to clear land,
build roads, construct buildings, and deliver other needed services for growing urban populations.
Source: University of Michigan, U.S.
A Partner You Can Build With
Sauer-Danfoss has new energy. And it’s sparked by our commitment to you. We strive to be
your strongest partner — one you can build with for the future.
Listening, Evaluating, and Acting
We focus on innovation and continuous improvement to reinvent ourselves and better serve
the changing world. As part of this, we seek feedback from our partners and employees and
take action to be “best in class.” Examples include investing to expand and move operations
closer to customers, pursuing new forward-looking ventures to enhance the customer’s
experience, implementing talent planning, providing strong leadership programs, and
reorganizing our efforts as needed.
To build on our history of success, we look for ways to add new talent and ideas throughout
the organization. This fresh perspective gives us a competitive advantage and allows us to
maximize efficiency and maintain strong accountability, alignment, and action.
What does Sauer-Danfoss do?
Sauer-Danfoss makes hydraulic components and electronic
controls that power and propel the equipment that excels
in the harsh off-road environment to build our world. In the
process, we strive to be the “friendly expert” — technical
and professional, yet very approachable.
Consistent Quality
The products that carry our name must pass through our
exacting processes and controls. The result? Consistent,
world-class quality produced in each Sauer-Danfoss facility
across the globe.
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PRODUCTS
You see the results of our work around you.
Think about the office buildings we work in,
the bridges we cross, and the fields of grain
that supply our food. Our products enhance
the machinery that improves the world.
movement to complex work tasks.
KNOW-HOW
158%
1948 2013
FEEDING THE WORLD
IN MOTION®
Farm output is 158% higher than in 1948.
Farmland productivity is increasing with mechanized farming. Agricultural
machinery is enhanced by Sauer-Danfoss hydraulics and electronics. Today,
farmers produce more food with less energy.
Source: ScienceDaily.com, 2012
Sauer-Danfoss creates and supplies hydraulic systems,
including the controlling electronics and software, for
original equipment manufacturers (OEMs). These
systems help manufacturers more effectively control
every function of their machinery, from basic vehicle
A World of Applications
When you look inside today’s cutting-edge
equipment, you’ll find Sauer-Danfoss. Our
components are used in a wide range of vehicles
and in every industry, including construction,
agriculture, road building, material handling, turf
care, specialty equipment, and more.
Product Lines
• Hydraulic pumps and motors
• Proportional valves
• Electronics
• Steering components
• Orbital motors
Your Strongest Partner in Mobile Hydraulics
Hydraulics move fluid power to various areas of a machine to make it move. The strength of
hydraulic power literally multiplies the capacity of work that machinery is able to do. In fact,
year after year, the application of hydraulics continues to grow — providing a powerful go-to
solution for design engineers. And with greater power comes greater results. With a tradition
of know-how spanning more than 50 years, Sauer-Danfoss helps manufacturers achieve
superior efficiency through superior hydraulic component design and electronic controls.
“I didn’t know hydraulics could do that.”
You’ll find our solutions at work in surprising ways. They’re in snow groomers
that prepare ski runs. They’re part of harvesters that collect tomatoes, beets,
potatoes and carrots. And they’re bringing in the day’s catch on fishing
trawlers. Through the blend of hydraulics and electronics, Sauer-Danfoss is
proud to supply much of the power that today’s machines use to efficiently
build our world, feed the planet, and enrich our lives.
Cutting-Edge Electronics
Sauer-Danfoss supplies the latest electronics (including
joysticks and sensors) and software that lie at the heart of
today’s modern vehicles. With our innovative PLUS+1 TM
control systems, we provide manufacturers a faster and
easier way of customizing controls for their machines. Our
solutions enable manufacturing partners to increase engine
efficiency, decrease lost power, and reduce emissions.
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HISTORY
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Many organizations operate globally today, as a result of recent macro-economic trends. But
at Sauer-Danfoss, our worldwide operations have always been part of who we are.
Today’s Sauer-Danfoss is the result of three pioneering companies -- Sundstrand in the U.S.,
Sauer-Getriebe in Germany, and Danfoss Fluid Power in Denmark. Over the years, Sauer-
Sundstrand formed a joint venture, and in 2000 merged with Danfoss Fluid Power to become
today’s Sauer-Danfoss.
GLOBAL
FROM THE START
Through our history, we’ve developed a groundbreaking product legacy, originating the
hydrostatic transmission, as well as creating orbital motors and steering units. We were
also the first to introduce load-sensing proportional valves, and the first to control them
electronically. Today, seamless integration of electronics and hydraulics is key to our business.
MACHINERY POPULATION
The continuing urbanization of our world’s population
drives the need for increasing numbers of bigger, stronger,
and more efficient mobile machinery.

FUTURE
WHERE
WE’RE GOING
With a spirit of continual renewal, we’re proud to say, “It’s a new
day at Sauer-Danfoss.” We’re more focused and agile than ever.
We believe in the value we add for you — in knowing that our
work literally makes a difference in the world around us.
This creates a continuous learning environment and an absolute
drive to think ahead and to be our best. In turn, we look for
opportunities to renew our approach — adding new talent
throughout our organization, developing increasingly efficient
processes, being flexible, and adapting to meet the ever-
changing needs of the world.
We know that when we challenge and reshape ourselves
to continually improve, we’re better able to deliver true
quality, innovation, and a unique customer experience
to our partners. And, by helping others succeed, we’re
proud to enjoy strong financial results — another
reflection of our commitment to those we serve.
© Blue Graphics Concept by Sauer-Danfoss
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OUR BUSINESS
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There are many ways we measure and pursue success
at Sauer-Danfoss.
One is by consistently achieving and maintaining
our strong market leadership position related to
our competition in our core businesses. Each day, we
work to build on our solid partnerships — and achieve
an even stronger position in the markets we serve.
STRATEGY
FOR SUCCESS
Another sign of our success occurs at the individual level —
Leadership begins with listening. Using customer
perception studies, we gain valuable input during
our strategy and product development efforts. We
work with our partners to optimize their machines
and test them in real-world conditions.
when we deliver a unique customer experience and build
meaningful relationships with those we serve. This happens
when our partners achieve results they could not have
experienced elsewhere. This spirit of service occurs through
our sales channels each day. And it continues to grow, as
we continually add new ways for customers to get the
assistance and information they need — when they need it.
Everything we do helps us work towards our goal of
continuous strong financial performance. This is a natural
result of overall performance, sound business practices, and
an aligned vision. By being an employer of choice and being
customer-focused, forward-thinking, and responsive, we’ll
continue to add bottom-line results.
$6 TRILLION IN NEW
INFRASTRUCTURE
IS NEEDED FOR
EMERGING NATIONS TO
MEET THEIR CITIZENS’
BASIC NEEDS.
INFRASTRUCTURE
The world’s largest expected infrastructure investments will be in the areas of water, transportation, and energy.
In fact, it’s estimated that China alone could need to build up to 40,000 new reservoirs to meet future water
distribution needs. Sauer-Danfoss components power the machines that are building the world.
Source: Merrill Lynch Global Research

PARTNERSHIP
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We’re committed to being your strongest partner. How? By serving our partners where they are —
in more ways than one.
First, we go where our customers are — literally. For example, many of those we serve
are in diverse locations the world over. As a result, we are, too — with regional offices, production
plants, committed distribution partners, and other facilities that deliver solutions on time — in the
“neighborhood.” Our expanding presence in China is just one example.
Second, we position ourselves to meet our customers where their needs
are. We know that a key to our success is understanding and solving customer needs — just like
the advances we made to allow large equipment manufacturers to more easily use our system
development software. Our long-standing relationships and strategic partnerships with original
equipment manufacturers keep us in tune with their challenges.
HOW WE WORK
WITH OUR CUSTOMERS

PARTNERSHIP
Solutions Come First
We put our industry-leading know-how in motion,
focusing on our strengths in mobile hydraulics. With
decades of applications expertise and experience,
we know how to truly be a partner that listens
to understand unique needs, and then creates
custom solutions with new or existing products.
For example, our engineering departments are
dedicated to finding optimum system designs
and solutions — using the latest tools to calculate,
simulate, create, and test new advances.
Part of this process involves adapting and bending
technology to meet our customers’ needs. And we
do it with ever-increasing efficiency and control. In
this way, we allow customers to differentiate their
offerings. We become a resource they can use as it
makes sense for their applications — applying our
expertise and knowledge to create the greatest
value for their end users. After all, when they
succeed, we succeed.
Creating the Future
Much of the value we bring is understanding and developing the next generation of
advanced solutions to meet the need before it’s here. To achieve that, we partner with
OEMs — working closely with their engineering departments to create future solutions, and
in turn, maintaining proprietary development for our customers. We continue to work on
our next generation of digital hydraulics — knowing that our core technology will serve our
customers well into the future.
Procuring Results
Global sourcing is essential for our future success, connecting us with new talent and ideas
that fuel collaboration and growth. Since quality and on-time delivery are key, we build for
the future by procuring only the best suppliers who pass our certification requirements. We
also work with them to implement global supplier standards and we provide suppliers with
comparative performance feedback to continually strengthen the relationship.
Helping the Environment
30 billion tons of carbon dioxide enter our air each year. That’s the same amount of water that
flows from the Rhine River in five months.
Sauer-Danfoss is part of the solution. We strive to be the environmental, health, and safety
leader wherever we do business. Our hydraulic and electronic solutions help to improve
operational efficiency and reduce emissions.
Sources: International Energy Agency and National Park Service and Frijters and Leentvaar
Smart Doesn’t Equal Complex
Delivering unmatched value is our goal. We believe in creating
smart solutions that cut out as much complexity and
inefficiency as possible. By arriving at streamlined solutions,
we can achieve outstanding results.
Adding Value Through Innovation
We learn from the lessons and breakthroughs of the past.
Drawing on this experience allows us to create solutions on
time and within budget. In this way, our energy is focused on
adding value through innovation.
30
CO 2
BILLION
TONS
PER YEAR
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MEET OUR EXECUTIVE OFFICERS THE SAUER-DANFOSS GROUP
Eric Alström
President and Chief
Executive Officer
Marc A. Weston
Executive Vice
President and Chief
Marketing Officer
Jesper V. Christensen
Executive Vice
President and Chief
Financial Officer,
Treasurer
Anne Wilkinson
Executive Vice
President – Human
Resources
Kells Hall
Executive Vice
President and
President – Propel
Division
Kenneth D. McCuskey
Vice President and Chief
Accounting Officer,
Secretary
Helge Jørgensen
Executive Vice President
and President – Work
Function Division
FINANCIAL PERFORMANCE
10,000
Strength in Our Numbers
Our financial success is a result of the strong partnerships
we build and the solutions we deliver.
Sauer-Danfoss is publicly traded on the New York Stock
Exchange (NYSE:SHS). For our most current financial results,
please visit us online at http://ir.sauer-danfoss.com.
8,000
6,000
4,000
2,000
0
SALES 2011
Total $2.1 billion
Sales split by region
Americas
Europe
Asia-Pacic
38%
44%
18%
EMPLOYEES SALES PER MARKET
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EBIT / RONA CASH FLOW
EARNINGS PER SHARE
EPS
EPS
Excluding
Diluted
Restructuring,
Impairment & SAP
$ 1.12 $ 1.51
$ 0.98 $ 1.45
$ (0.60) $ 0.81
$ (7.15) $ (4.92)
$ 4.40 $ 4.63
$ 4.74 $ 4.80
Hydro-Gear® — Builds hydrostatic drive systems.
Hydro-Gear is a joint venture with Agri-Fab.
OpenCircuitGear
MEMBER OF THE SAUER-DANFOSS GROUP
TurollaOCG TM — Creates gear pumps, motors, and fan drives.
18 19
50
40
30
20
10
0
-10
-20
%
Millions USD
2500
2000
1500
1000
500
0
EBIT
RONA
2006 2007 2008 2010 2011
Agriculture / Turf Care
Construction / Road Building
Specialty / Material Handling
Distribution
2009
( Excluding Restructuring, Impairment and SAP Roll-out Costs)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Millions USD
300 Free Cash Flow
Capital Expenditures
250
200
150
100
50
0
-50
2006
2007
2008
2009
2010
2011
2006 2007 2008 2009 2010 2011
Partnering in New Ways
Consisting of five additional brands,
the Sauer-Danfoss group of companies
through their own individual strategies,
sales, production, and support structures.
Comatrol — Produces cartridge valves and hydraulic
integrated circuits (HICs).
schwarzmüller
inverter
MEMBER OF THE SAUER-DANFOSS GROUP
Schwarzmüller Inverter — Develops electric inverter products.
Valmova — Specializes in directional control valves.

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A World of Opportunity
Times may change. Our commitment to you won’t.
New trends, needs, and technologies will continue to provide new opportunities. Whether you
are one of our customers, investors, or employees, we look forward to working with you as your
strongest partner for the future.
Watch our corporate video to learn more
Contact Us
READY
TO WORK
WITH YOU
SAUER-DANFOSS (US) COMPANY
2800 East 13th Street
Ames, IA 50010, USA
Phone: + 1 515 239 6000
Fax: + 1 515 239 6618
SAUER-DANFOSS APS
Nordborgvej 81
DK-6430 Nordborg, Denmark
Phone: + 45 7488 4444
Fax: + 45 7488 4400
SAUER-DANFOSS GMBH & CO. OHG
Postfach 24 60, 24531 Neumünster, Germany
Krokamp 35, 24539 Neumünster, Germany
Phone: + 49 (4321) 871-0
Fax: + 49 (4321) 871-355
www.sauer-danfoss.com
L1211408 • Rev AA • Aug 2012