Group Overview 2009

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Group Overview


Cover Main picture: Volfkan Gjokaj, employee in Foam Materials business unit Publication details Publisher: Conzzeta AG, Zurich Concept, design and text: Prime, Zurich Photography: Jolanda Flubacher Derungs, Sebastian Derungs, Zurich, et al. Translation: Peter Thomas Hill, Stäfa ZH Printing: Staffel Druck AG, Zurich Basic map: Kober-Kümmerly + Frey, Cologne © Conzzeta – March 2010


Conzzeta – Group Overview

Conzzeta at a glance Conzzeta is an internationally active Swiss holding company with broadly diversified businesses. Its activities are in the areas of machinery and systems engineering, foam materials, sporting goods, graphic coatings and real estate. In the interests of customers, employees and shareholders, Conzzeta develops its businesses with a long-term perspective.

Sheet Metal Processing Systems Bystronic: Solutions for the processing of sheet metal and other sheet materials

Glass Processing Systems Bystronic glass: Systems for processing flat glass

Automation Systems ixmation: Systems for automation of assembly and testing

Foam Materials FoamPartner: Foam products for industry and comfort applications

Sporting Goods Mammut Sports Group: Mountaineering, climbing and winter sports equipment

Graphic Coatings Schmid Rhyner: Print varnishes and laminating ­adhesives for the graphical industry

Real Estate Plazza Immobilien: Management of the Conzzeta Group’s portfolio of properties

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Conzzeta – Group Overview

As an entrepreneur, you have to stand up for your company. I reject the approach to business which sees only short- to medium-term financial goals. Jacob Schmidheiny, Chairman of the Board of Directors

The people in a company are what really make the difference. Robert Suter, Group Chief Executive Officer


Conzzeta – Group Overview

Key facts 2009 – Conzzeta operates worldwide in a variety of business sectors and geographical markets. – Around 60 percent of sales are generated in machinery and systems engineering. – Consolidated net revenues are CHF 955.2 million. – The Group has 3 300 employees in over 50 locations worldwide. – The stable shareholder base, with TEGULA AG as the main shareholder, guarantees a long-term business perspective. TEGULA AG holds 74 percent of the share capital. – Conzzeta’s bearer shares are listed on the SIX Swiss Exchange. – Conzzeta stems from a long industrial tradition – its foundation stone was laid in the 19th century.

Net revenue by business unit 2009 (CHF m)

Sheet Metal Processing Systems 356.1   Glass Processing Systems 145.6   Automation Systems 56.1   Foam Materials 116.8   Sporting Goods 215.3   Graphic Coatings 43.2   Real Estate and miscellaneous revenue 22.1 Total Group CHF 955.2 million

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Conzzeta – Group Overview

Conzzeta growing worldwide from Swiss roots The seven business units of the Conzzeta Group serve ­customers in more than 90 countries, and are represented through their own companies in 26 different countries.

North and South America: share of net revenues and employees

Share of net revenues per region in consolidated net revenues of CHF 955.2 million in 2009 Employees per region in 2009

326

Countries with Group-owned companies Austria Brazil Canada China Czech Republic France Germany Great Britain India

6

Italy Japan Korea Malaysia Mexico Netherlands Norway Poland Romania

12.5% CHF 119.4 million

Russia Singapore Slovakia Spain Sweden Switzerland Turkey USA


Conzzeta – Group Overview

Europe Net revenues 2009 in CHF million – Switzerland: 156.0 – Euro area: 386.3 – Rest of Europe: 130.7 – Total Europe: 673.0

Number of employees 2009 – Switzerland: 1133 – Germany: 875 – Rest of Europe: 336 – Total Europe: 2 344

Europe and Africa: share of net revenues and employees

2 344

71.0% CHF 678.5 million

Asia and Pacific: share of net revenues and employees

555

16.5% CHF 157.3 million

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Conzzeta – Group Overview

Key figures Conzzeta has a strong financial basis, with an equity ratio of 78 percent.

EBIT and Group result (in CHF million)

1 000

75

750

50

500

25

250

0

0

– 25

0 20

20

20

20

20

28.0

49.0

31.8

56.0

09

–50

20

10

08

0

20

20

07

50

20

30

06

100

20

40

20

06

05 20

28.5

150

09

50

08

200

07

60

06

250

05

141.8

– 30.8

195.9

70.1

29.7

70

05

300

20

20

20

08

06 20

20

20

Investments in property, plant and equipment and intangible assets (in CHF million)

Free cash flow (in CHF million)

8

09

100

20

1 250

08

125

20

1 500

20

150

09

1 750

07

175

05

2 000

07

Ordinary result Extraordinary result Operating result (EBIT)

955.2

1 472.5

1 507.0

1 273.6

1 153.4

Net revenue (in CHF million)


Conzzeta – Group Overview

Conzzeta – Annual report 2009 Further information

Five-year summary Five-year summary

2009

2008

2007

2006

2005

356.1

745.1

793.5

632.0

490.0

Net revenue by business unit Sheet Metal Processing Systems

CHF m %

37.3

50.6

52.7

49.6

42.5

Glass Processing Systems

CHF m

145.6

244.6

237.3

219.2

196.5

%

15.3

16.6

15.7

17.2

17.0

Automation Systems

CHF m

56.1

73.6

76.7

49.6

32.0

%

5.9

5.0

5.1

3.9

2.8

Foam Materials

CHF m

116.8

146.3

156.5

147.5

135.2

%

12.2

9.9

10.4

11.6

11.7

Sporting Goods

CHF m

215.3

192.6

177.1

164.7

145.0

%

22.5

13.1

11.7

12.9

12.6

Graphic Coatings

CHF m

43.2

47.5

44.1

36.5

31.6

%

4.5

3.2

2.9

2.9

2.7

Real Estate and miscellaneous revenue

CHF m

22.1

22.8

21.8

21.9

20.3

%

2.3

1.6

1.5

1.7

1.8

Revenue from discontinued activities

CHF m

2.2

102.8

%

0.2

8.9

Total

CHF m

955.2

1 472.5

1 507.0

1 273.6

1 153.4

Net revenue

CHF m

955.2

1 472.5

1 507.0

1 273.6

1 153.4

Operating result

CHF m

– 1.4

97.8

132.1

80.6

66.8

Extraordinary result

CHF m

10.1

3.9

56.5

9.6

9.6

Group result

CHF m

3.3

78.8

161.4

71.1

63.6

Current assets

CHF m

853.8

914.5

970.0

799.0

683.6

Fixed assets

CHF m

401.0

418.4

413.7

418.2

443.7

Short-term liabilities

CHF m

198.1

247.7

318.3

286.2

232.7

Long-term liabilities

CHF m

78.4

84.3

74.5

78.2

95.3

Shareholders’ equity

CHF m

978.3

1 000.9

990.9

852.8

799.3

Total assets

CHF m

1 254.8

1 332.9

1 383.7

1 217.2

1 127.3

%

78.0

75.1

71.6

70.1

70.9

Consolidated income statement

Consolidated balance sheet

Shareholders’ equity as % of total assets Investment in fixed assets / employees Investments in property, plant and equipment and intangible assets Employees at year-end Employees, average

CHF m

28.0

56.0

49.0

31.8

28.5

Number

3 225

3 718

3 444

3 273

3 280

Number

3 551

3 581

3 356

3 086

3 069

Net revenue per employee

CHF thousand

269.0

411.2

449.0

412.7

375.8

Personnel expenses per employee

CHF thousand

80.7

94.1

97.1

96.7

93.0

84

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Conzzeta – Group Overview

Solid financing and a long-term perspective are the basis for healthy growth of Conzzeta.

The values we build on Values that are not just written down, but lived up to – these are what our companies are built on.

Responsibility We invest in companies in order to offer useful products and services, create attractive jobs and generate healthy revenues.

Scope for development We create a framework that enables our executives and employees to act self-reliantly and develop their full potential.

Innovation We foster innovation on all levels to help our companies consolidate and develop their strong market positions.

Respect We act with consideration for people and nature, and respect the legal and social framework. We build trust, inside and outside the company, through fairness and ­reliability.

Financial standing We maintain our strong financial fundamentals so that we can withstand difficult periods with equanimity. That is why we finance our businesses, as far as possible, from our own resources. 10


Conzzeta – Group Overview

“ Ferdi Töngi, CEO Bystronic

Closeness to customers, innovative systems which are simple to operate, first-class ­service, quality and reliability make Bystronic the best choice.

Sheet Metal Processing Systems – Bystronic Bystronic is a world-leading supplier of solutions for the processing of sheet metal and other sheet materials.

Bystronic’s offering includes laser and waterjet cutting systems, as well as pressbrakes. The integrated software ensures optimized control of the cutting and bending processes. For Bystronic customers, this linking of the chain from computer-aided engineering through to finished workpiece is all part of the deal. Bystronic also ­offers automation solutions for cost-effective control of the material flow. A comprehensive service package, from financing through to maintenance of the machinery, completes the offering. Bystronic systems are used in a wide range of industries, including metalworking, machinery, commercial vehicle, construction and aeronautical engineering. The machinery is designed to process a variety of materials in a wide range of dimensions, from tiny machine parts to vehicle chassis several meters long. Laser cutting and pressbrakes are used for processing sheet steel, chromium steel and aluminium, while waterjet cutting can be applied to all kinds of materials. Many Bystronic customers are small- and mediumsized enterprises – component suppliers or manufacturers of finished products – in ­almost all branches of industry.

Bystronic Laser AG was founded in Niederönz (Switzerland) in 1986. The company joined the Conzzeta Group in 1994.

Overview Bystronic – Annual net revenue 2009: CHF 356.1 million – Number of employees: 1389 – Presence: worldwide, over 20 sales and service companies; 3 development and production sites in Switzerland, Germany and China www.bystronic.com

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Conzzeta – Group Overview

“ Richard Jakob, CEO Bystronic glass

Our customers appreciate our reliability and expertise in responding to their very diverse requirements.

Glass Processing Systems – Bystronic glass Bystronic glass offers high-quality system solutions for the processing of architectural and automotive glass.

Every customer involved in processing flat glass has different requirements. Bystronic glass gears its offering to this diversity, with a broad spectrum of products ranging from stand-alone machines via production lines to turnkey production facilities that cover all steps in the processing chain. All this is backed up by expert and reliable customer service. Bystronic glass is specialized in the architectural and automotive glass segments. In the former, the focus is on systems for the manufacture of insulating glass, which is in growing demand around the world owing to ever more stringent requirements in terms of energy efficiency and noise protection. The offering also includes systems for cutting architectural glass, for the manufacture of laminated safety glass, and for handling machinery used in the storage and transportation of glass. In the automotive segment, Bystronic glass provides systems for the preprocessing stage, which involves cutting, grinding and drilling. A further area of expertise is in providing solutions for customers in the solar industry, for preprocessing in the front- and back-end segments. 12

The company has facilities for product development and manufacture at sites in Switzerland, Germany and China, as well as its own worldwide network of sales and service companies and representative offices. Bystronic glass looks back on a long history in the development and manufacture of systems for flat-glass processing, beginning in 1964 with Bystronic Maschinen AG in Switzerland. The business unit has been part of the Conzzeta Group since 1994.

Overview Bystronic glass – Annual net revenue 2009: CHF 145.6 million – Number of employees: 668 – Presence: worldwide sales and service network, with 6 subsidiaries and several representative offices; 3 technology centers (development and production) in Germany and Switzerland; 1 production site in China www.bystronic-glass.com


Conzzeta – Group Overview

“ Martin Pfister, CEO ixmation

Developed in the USA, built and installed in Asia – for customers with global operations we have to be quick, creative and flexible.

Automation Systems – ixmation ixmation is an international supplier of systems for the automation of assembly and quality assurance for mass products. ixmation automation systems are used in the manufacture and testing of a wide variety of components and products. For example, auto seat adjusters, dental implants, solar panels, medical self-test kits and mobile telephones are all assembled cost-effectively and in consistent quality using ixmation technology. Visual or analog quality assurance of the components produced is an integral part of the ixmation automation solutions. Leak detection systems, which work with helium in vacuum chambers, test the integrity of materials and welded joints, for example in cooling units, air-conditioning systems and diesel fuel injectors. ixmation systems thereby contribute significantly to the protection of end-users. ixmation customers are mostly international hightech companies, operating in the fields of renewable ­energy (solar and wind power), medical technology, consumer goods and the automotive industry. The business unit provides rapid, creative and flexible services on the spot. Unlike other industry players, ixmation is at home on several continents, giving it a decisive advantage. For

example, it can design a system in teamwork with the customer’s development engineers in the USA and then install it and bring it on stream at a production site in Asia. The ixmation business unit was established by the Conzzeta Group in 2005.

Overview ixmation – Annual net revenue 2009: CHF 56.1 million – Number of employees: 305 – Presence: 5 locations in China, Malaysia, the USA and Switzerland www.ixmation.com

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Conzzeta – Group Overview

“ Bart J. ten Brink, CEO FoamPartner

We set trends with innovative products and services that we are continuously developing and bringing to the marketplace.

Foam Materials – FoamPartner FoamPartner manufactures high-quality foam materials and offers customized solutions for the Industry and Comfort business segments. FoamPartner develops, manufactures and processes highquality foam materials made from polyurethane. It has a very diverse product portfolio, offering over 200 different types of foam. The company operates on three continents: Europe, Asia and North America. In addition to polyurethane foams, the business unit’s processing plants turn polyethylene and melamine foams into customer-specified components and complete solutions. FoamPartner focuses on two strategic business segments: “Comfort” comprises foam products for manufacturers of mattresses, pillows and cushions. FoamPartner produces premium comfort foams for the most demanding specifications, guaranteeing a good night’s sleep. The “Technical Foams” segment is focused on industrial applications, offering top-class, customized foam products for use as polishing pads, seals and cleaning sponges, or for applications in technical installations and automotive technology. The history of FoamPartner goes back to 1937 when the original company began trading in natural sponges. It took up foam manufacture in the 1950s and became part 14

of Conzzeta in 1980. The FoamPartner master brand was established in 2000, bringing together foam specialists on three continents.

Overview FoamPartner – Annual net revenue 2009: CHF 116.8 million – Number of employees: 444 – Presence: 9 production, processing and sales locations in Europe, Asia and the USA; worldwide marketing through a partner sales network www.foampartner.com


Conzzeta – Group Overview

“ Rolf G. Schmid, CEO Mammut Sports Group

The 2009 business year has shown that, even in economically difficult times, there is a demand for durable, technically advanced products.

Sporting Goods – Mammut Sports Group Mammut Sports Group develops, manufactures and markets innovative mountaineering, climbing and winter sports equipment. For over 145 years, the Mammut Sports Group has stood for safety, innovative solutions and strong customer service. The alpine sports lines – ranging from clothing and shoes, through backpacks, sleeping bags, climbing harnesses, ropes and biners, to care products and Toko brand ski waxes – combine functionality, technology and design, all made to Swiss quality standards. Alpine sports are demanding and the focus is on high performance. Mammut is continuously improving its products in order to meet the demands of professionals and amateurs alike. The company’s specialists develop products in close collaboration with professional mountaineers and extreme sports enthusiasts. Mammut is constantly breaking new ground, also in its marketing activities. At Mammut test events, staged annually since 2007, customers and employees get to meet and interact on a regular basis. The events give rise to strikingly unusual photographs – for example, 200 skiers in a triangular formation, 60 Mammut employees in a sleep laboratory at 2 700 meters of altitude, and 30 mountain guides on an isolated rocky outcrop (see pic-

ture above left). Apart from the unique experience, participants get a taste of the brand world as “Mammut photo models”, making them key ambassadors for the Swiss alpine and climbing gear specialist. When Kaspar Tanner laid the foundation stone for his rope-making business in Dintikon near Lenzburg (Switzerland) in 1862, he could not have dreamt that, one day, it would grow into such an innovative and successful alpine sports brand. Today, Mammut is one of the most popular brands in the mountain sports and outdoor sector.

Overview Mammut Sports Group – Annual net revenue 2009: CHF 215.3 million – Number of employees: 348 – P resence: worldwide sales network in over 80 countries; head offices, product development and rope manufacture in Seon (Switzerland); numerous production partners in Europe and Asia www.mammut.ch

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Conzzeta – Group Overview

“ Serge Entleitner, CEO Schmid Ryhner

We have a competitive edge thanks to our wide-ranging expertise in print ­finishing processes and environmentally friendly products.

Graphic Coatings – Schmid Rhyner Schmid Rhyner develops and manufactures environmentally friendly print varnishes and laminating adhesives for the graphical industry. Founded in 1973, Schmid Rhyner is a leading supplier of print finishing products. The overprint varnishes and laminating adhesives can be used for partial or full varnishing, on high-quality printed matter and in printed packaging for the pharmaceutical, cosmetics, luxury products and food segments. Apart from their protective function, print finishing products serve as a creative design element, adding considerable value to high-end printed matter. Schmid Rhyner develops, manufactures and markets overprint varnishes and laminating adhesives in two product lines: a UV-hardening range, and water-based dispersions which are dried by applying heat. All the products are environmentally friendly, solvent-free and recyclable. Schmid Rhyner products are developed in close collaboration with customers and printing machine manufacturers to ensure that they meet the highest quality standards. The company also provides active customer support in the form of wide-ranging theoretical and practical training courses in all aspects of print finishing. These courses are complemented by individual, on-site 16

consulting and technical support for the performance of production tests. Schmid Rhyner was founded in 1880 and has a long tradition in the manufacture of coating materials. The company began making products for the printing industry in 1973. Schmid Rhyner was acquired by Conzzeta in 1987. Its products are now sold in more than 90 countries.

Overview Schmid Rhyner – Annual net revenue 2009: CHF 43.2 million – Number of employees: 45 – Presence: worldwide sales network in over 90 countries; 1 production site in Adliswil (Switzerland); 1 subsidiary in New Jersey (USA) www.schmid-rhyner.ch


Conzzeta – Group Overview

“ Ralph Siegle, CEO Plazza Immobilien

As custodians of long-term investments – real estate – we are part of the solid foundations of the Conzzeta Group.

Real Estate – Plazza Immobilien Plazza Immobilien manages the Conzzeta Group’s ­port­folio of properties. With a wide range of properties, from apartments and office buildings to a gravel pit, Plazza Immobilien is a multifaceted business, with the corresponding management know-how. A small, highly efficient team manages residential and commercial property, providing a comprehensive range of services focused on maintenance of value and development of the property and land assets. The Tiergarten development in Zurich is part of the ­Plazza Immobilien portfolio. This residential estate with over 500 apartments was built on the former premises of the Zürcher Ziegeleien works. It was the first industrial site in the City of Zurich to be rezoned for housing. ­Plazza Immobilien’s tasks also include support for the industrial business units in matters concerning real estate. In addition to managing the Group’s property assets, Plazza Immobilien provides services to third parties.

Overview Plazza Immobilien – Annual net revenue 2009: CHF 21.4 million – Number of employees: 11 – Presence: properties throughout Switzerland www.plazza-immobilien.ch

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Conzzeta – Group Overview

Tradition and change The Conzzeta Group, which now operates worldwide, looks back on a long history that began with tile and brick works in Zurich.

18

Concentration on construction materials and tile and brick products; steady expansion and growth

Entry into rope and sporting goods business with acquisition of Arova-­ Lenzburg AG, today Mammut Sports Group

2

0

Beginning of diversifi­ cation. Entry into foam materials business with acquisition of Fritz Nauer AG, today FoamPartner

19 8

19 1 –1 3 97 9

19 12

Establishment of joint stock company Zürcher Ziegeleien

As a first step, in 1980, the company took up the manufacture of foam materials; in 1982 it entered the rope and sporting goods sector; and in 1987, paint and varnish production followed. In 1992, the parent company was transformed into a holding company to meet the needs of the extended group structure. Two years later, the Group entered the machinery and systems engineering sector, which has since developed into the largest business area, with worldwide operations. Systematic implementation of the diversification strategy away from building materials led to the sale of the original core business with construction products in 1999. This coincided with the renaming of the holding company as Conzzeta. One year later, Conzzeta entered the automation sector. The Conzzeta Group today is a holding company, with businesses operating worldwide in a variety of sectors with high growth potential.

19 8

The Conzzeta Group traces its origins back to the 19th century when a number of modern tile and brick works grew up within the present city boundaries of Zurich. The pressure to consolidate led to the merger of the various works in the city. The initiative came from the Dampfziegelei Heurieth works, whose Board of Directors included the brothers Ernst and Jacob Schmidheiny from Heerbrugg. In 1912, Mechanische Backsteinfabrik Zürich and Ziegeleien Albishof-Heurieth joined forces to form a joint stock corporation called Zürcher Ziegeleien, the company we now know as Conzzeta AG. Zürcher Ziegeleien steadily expanded its activities, continuing its business with construction materials until the end of the 20th century. Starting in 1980, the company began a program of cautious diversification, aimed at better risk distribution.


Conzzeta – Group Overview

0.5 kilowatt laser output: the first laser cutting system, built in 1984.

A worker places tiles in the firing channel of a ring kiln.

6 kilowatt output: the latest laser cutting machine is a powerhouse which can cut sheet metal rapidly, dynamically and with a high degree of precision.

Two letters in the name recall the origins of the Group – in the Zürcher Ziegeleien tile and brick works.

Conzzeta’s parent company – Mechanische Backsteinfabrik Zürich – started production in 1865.

Foundation of ZZ Immobilien AG, today Plazza Immobilien AG

Entry into automation sector

00 20

4

Entry into machinery and systems engineering with acquisition of Bystronic Group

19 9

2 19 9

19 8

7

Entry into architectural paints and varnish production with acquisition of Schmid Rhyner AG

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Conzzeta AG Giesshuebelstrasse 45 P.O. Box CH-8045 Zurich www.conzzeta.ch


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