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R&M Annual Report 2008
 

R&M Annual Report 2008

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R&M Report 2008

R&M Report 2008

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    R&M Annual Report 2008 R&M Annual Report 2008 Document Transcript

    • Annual Report 2008 1
    • Facts & Figures 2008 Sales Development (in millions of CHF consolidated) , 240 220 200 180 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 Sales in millions of CHF 140.0 161.0 196.0 241.0 247.0 Growth in relation to previous year 8% 15 % 22 % 23 % 2.2 % EBIT as a % of sales 8.5 % 7 % .0 12.5 % 13.0 % 7 %* .0 * Contains a special charge for PK reorganization. EBIT over the past five years has averaged 10 %. International Sales Revenues Sales produced outside Switzerland accounted for 78 % of total sales revenues. Development Expenses Average development expenses over the last five years: 4 % of sales. Innovation 20 % of total sales revenues in 2008 were achieved with products less than three years old. Number of Employees as at December 31, 2008: Total 676 Research and Development 9% Production 31 % Sales and Marketing 34 % Purchasing and Logistics/Distribution 17 % Management and Administration 9% Ownership R&M is wholly owned by Messrs. Hans Reichle, Martin Reichle and Peter Reichle. 2
    • Contents 2 Facts & Figures 2008 4 Report from the Chairman of the Board of Directors 6 Report from the CEO 8 Report from the CTO 10 The Management 12 The Employees 14 Report from the COO Sales 16 Report from the COO Operations 18 Communications and Market Presence Printing Information for the Annual Report 2008 Published by: Reichle & De-Massari AG, Corporate Communications, Binzstrasse 31, CHE-8620 Wetzikon, Switzerland Editing and Layout: Corporate Communications R&M Printed by: NZZ Fretz AG, CHE-8952 Schlieren, Switzerland 3
    • Transparency Builds Trust – Report f Transparency Requires Clarity and Candid Dialog Clarity begins in your own thoughts and actions. You communicate and discuss matters openly with employees, customers, suppliers, project partners but also in contacts with public authorities, associations and the general public. This openness builds trust and creates a firm foundation for a company’s successful future. The channels of communication in a company are not one-way streets. Only individuals who are taken seriously ask the important questions. Only indi- viduals who can listen can find the right answers. Only individuals who have complete information can make the best decisions. Hans Hess Clarity and dialog are indispensable for our company achieving sustainable Chairman of the Board of Directors development and long-term prosperity in the interest of all customers, employees, owners and society. Facing the Future with Confidence Our company’s progress in these increasingly difficult economic times shows that sustainability is more than a mere slogan selected for the last business year. It is a value by which we have truly lived over these past months. Despite declines in business with several major customers, R&M once again achieved respectable growth in 2008. We also made significant investments in our company’s future to this end. Keys to the Future: Technology and New Markets We want to improve our lead, not just maintain it. With the new CTO position, Research, Development and Marketing activities are now represented directly at the top management level. We were fortunate to be able to fill this position with a proven expert: Martin Rosatzin, a physicist with an Executive MBA from the University of Zurich. He will focus on improving our position as innovation leader in fiber optics without neglecting our market lead in copper technology. Our established markets in Europe and EMEA are likely to stagnate in the near future whereas Southern Asia, the Far East and the Asia/Pacific region still offer growth opportunities. We want to seize these opportunities with the Asia hub we opened in Singapore last November while abiding by our creed of remaining as close and responsive to customers as possible. 4
    • from the Chairman of the Board of Directors Our headquarters has also seen important projects completed and promising ones launched. A new forward-looking ERP system is being rolled out across the company. The sales network has become even denser with the addition of a subsidiary in Bulgaria and a branch establishment in London. And the Hans Reichle Member of the Board of start of construction on a new research, production and warehouse complex Directors at company headquarters in Wetzikon is a clear commitment to Switzerland as a business location. Operating processes will be more streamlined there, which will help to absorb economic and foreign-exchange setbacks. We de- signed the new building in accordance with the highest MINERGIE standard as a sign that we abide strictly by the sustainability principle in an ecological sense, too. On completion, it will be able to operate without the use of any fossil fuels. Martin Reichle Member of the Board of A Word of Thanks for Your Trust Directors and CEO Members of the Board of Directors and Management unfortunately have no crystal ball to let us know what will happen in the future. R&M will not be able to escape the effects of the worldwide recession now unfolding. However, with our strong business performance and a sustainable strategy, an entrepreneurial spirit and competent leadership, we are convinced that together we will be able to meet the challenges in 2009. Our goal is to have R&M emerge from the economic crisis even stronger than before and to fully utilize the opportunities that present themselves during the downturn Peter Reichle Member of the Board of and in the subsequent upturn. On behalf of the Board of Directors and the Directors and COO Management, I would like to thank all employees for their great performance this past year and for their commitment to our business in the new year. We also express our gratitude to our customers and partners for their loyalty and support in 2008. We look forward to continuing our successful collaborations with you in the future. For the Board of Directors Hans Borner Member of the Board of Für den Verwaltungsrat. Directors Hans Hess, Chairman Paul Witschi Member of the Board of Directors 5
    • A Clear Strategy on a Solid Foundat Adversity Makes the Capable Even More So Trust in a company itself and between this company and its partners is largely based on candid, clear information. Maximum transparency pays off as a core principle of business policy. The past five years of above-average growth definitely prove that point. Although we will have to accept lower growth rates in sales and profits in 2009 and possibly also in 2010, we will not swerve one iota from our transparent business policy. I am con- vinced that we will jointly master the present difficulties effectively and that the company will emerge stronger than ever from the economic crisis. My confidence is based on three facts. Our Successful Strategy Martin Reichle By consistently developing key account management and focusing on CEO Layer 1 cabling solutions, we have almost doubled sales over the past five years and expanded our workforce accordingly. Along with outpacing our competitors in growth, we have increased our market shares. We are now one of the top three players in Europe and in the Near and Middle East. With the opening of our supply chain hub in Singapore, the first of five that are planned, we underscore our aspiration to capture a place among the top three companies in our industry in the Asia/Pacific region, too. Long-Term Anti-Cyclical Investment Policy With an average EBIT of 10 % in the past five years and a solid equity base, we can continue pursuing our strategy even in two slower business years. For instance, by increasing by 13 % our investment in research and develop- ment and in developing new markets such as India. In the years ahead, we will also utilize our uncontested leadership in copper-based business to focus even more sharply on the fiber optic range. The completed rollout of SAP and our concentration on Swiss activities with the construction of a factory building in Binz will boost efficiency and help to offset other losses. 6
    • tion – Report from the CEO Highly Qualified and Motivated Employees It is extremely important to us to cultivate an exemplary corporate culture based on shared values such as respect, honesty and humility. All employees can expect the trust of colleagues, superiors and the management and are given the necessary freedom of action to develop as individuals. Our cadre wants to act as role models in all respects and to develop strong international teams. Together we will keep the ship on course. Our strong crew delivers top performances and can look with confidence to the future. No matter what develops over the next two years, we will maintain our fundamentally positive attitude and seize all opportunities that arise in order to cross even rough economic seas in safety. On behalf of the Management Martin Reichle, CEO 7
    • Innovation Is a Question of Corpora Transparency, Openness and Trust An innovation may be triggered by a flash of genius out of the blue. In most cases, however, innovation occurs against the backdrop of experience, knowledge, skill and strategic thinking in a climate of transparency and open- ness, constructive criticism and trust. For innovation to happen, a company must know the markets inside and out and have a crystal clear picture of customer needs. It must use available resources wisely, expand technical capabilities and intuit future trends. Finally, it must lay the groundwork and perhaps have a little well-deserved luck to succeed in the market. A Step Ahead R&M has a complete range of top-of-the-line cabling components combined Martin Rosatzin with uncontested core skills, technological resources, and experience, both CTO, Innovation and Marketing in copper technology and in fiber optics (FO). As an innovation leader, we apply the concept of cross-industry innovation, efficiently transferring solu- tions from one industry to another application context. We constantly test new materials and technologies to remain that one critical step ahead in the marketplace. For this reason, we also run an in-house laboratory staffed by proven experts. Our flexibility as a mid tier business helps us to respond quickly and efficiently to changing market needs. We are intentionally transforming ourselves from a component supplier to a system provider. Today we rank among the best in the copper segment. In the coming years we will also capture this spot in FO business. We continue to be active in different lines of business, so we can spread our risks, a strategy we have successfully pursued for years. We are high-end providers of quality products. Our great skill in the field of high-frequency connectors allows us to collaborate strategically with OEM customers. 8
    • ate Culture – Report from the CTO Carrier Solutions for FTTx For many carriers, the structural change now occurring in the market means a transition into the all-IP world that is difficult to calculate, in terms of technology and business. We help network operators to implement their FTTx strategies by providing them with customized products and systems. Our portfolio ranges from central office and hub solutions through products for the main and distribution networks to small distributors, splitters and wavelength division multiplexing (WDM). First-Ever Connector for all Classes in FO Data Transmission With the SC-RJ connector from R&M, light can be transmitted from one optic fiber to the next virtually loss-free. That makes R&M the first supplier to cover all fiber optic performance classes with a single connector system for office, building, campus, industry and computing center. Flexible Microsplitters for Double the Number of RJ45 Connections An RJ45 connection can be installed or removed in a flash with the RMS45. That makes cable sharing easier than ever for applications such as Voice over IP at the workplace. This is an example of a product that can be used extremely flexibly and installed with the utmost ease. R&M on Stages around the World The EtherCon® Cat. 6 from Neutrik is one example of our successful collaborations with other specialists. This product from the Lichtenstein- based manufacturer of sturdy connection equipment is the first rugged and waterproofed RJ45/Cat. 6 connection for data applications in the audio, stage and lighting segments. The metal housings for connectors and outlets contain modified RJ45/Cat. 6 modules made by R&M. Direct Contact with Private End Users Using media in every room and communication tools throughout the home is a trend that has become ever more prevalent in recent years. With its new MultiroomPRO system, R&M offers households a functional and reliable so- lution free of the “spaghetti syndrome. ” 9
    • Asserting Leadership with Renewed Executive Board Martin Rosatzin, CTO Hans-Peter Legler, COO Innovation and Marketing Sales and Service Peter Reichle, COO Martin Reichle, CEO Martin Gasser, CFO Production and Logistics Senior Executive Finances and Controlling 10
    • d Resolve – The Management “To truly achieve sustainability, you have to take time to recognize opportu- nities, minimize risks and focus on business that will remain lucrative in the long term. ” Martin Reichle, CEO “The global supply-chain strategy must be implemented in a consistent and lasting manner. It is also crucial for employees to constantly maintain a high degree of motivation and personal identification with the company. ” Peter Reichle, COO Operations “To me, sustainability means building a strong brand and being able to reach the local markets both in terms of vertical segments and technologies. It is crucial to capture a large and profitable market share. ” Hans-Peter Legler, COO Sales “Ensuring profitable growth has a lasting effect. Crucial factors in this are a healthy balance between sales growth and adequate margins as well as professional risk management.” Martin Gasser, CFO “Sustainability requires innovation. This necessitates careful observation of the environment and constant adaptation to changing market requirements. ” Dr. Martin Rosatzin, CTO 11
    • Our Success Is Our Employees’ Suc Highly Qualified and Motivated Employees As our business has steadily grown, so too has our workforce. It now numbers over 650 highly qualified and motivated employees. At R&M, we communi- cate openly in flat hierarchies. We consider the personal and professional development of all employees to be especially important. In establishing the R&M Academy, we have created a professional instrument for continuing training and education. Xund is a company program for promoting individual health that we have operated for several years. It continued in the year under review with various offerings such as sports activities, nutritional advice, and Thomas Glättli, Head of Corpo- the annual health check. Last year’s Health Week, for example, focused on rate Product Management feet as the basis for good posture. Credibility Results from Genuine Identification with the Company Our employees convey our values and corporate culture in their work environ- ments and in outside contacts with customers, partners and suppliers in the context of behavioral branding with the R&M “Evolution Drivers.” All good business relationships are ultimately based on a solid and trusting relationship between the customer and our employees. R&M employees excel in their devotedness and enthusiasm. This enthusiasm spreads to our customers, as customers and partners always tell us. The “Evolution Drivers” were defined in the cadre last year. These are values Robert Grischany, Regional we wish to use as orientation points as we move forward. They are like oil in Sales Manager the gears of strategy implementation. These guideposts are also helpful for us in evaluating new employees. Stefan Kocher, Head of Ware- house and Shipping 12
    • ccess Innovation and Competency “R&M is well-positioned in a dynamic environment. Technology, quality and our strong international orientation, characterized by growth, make work especially exciting. I can set a lot of things in motion here. ” Thomas Glättli, Head of Corporate Product Management Initiative and Team Spirit “What really excites me is that I can devise creative solutions and then put them into permanent practice in the team. Everyone is pulling together!” Robert Grischany, Regional Sales Manager/Region East Europe Carmen Andueza, Manage- ment Assistant Personal Responsibility and Motivation “The work is never dry routine. That is what motivates me most. Our strong growth in recent years has brought many innovations and changes. With personal responsibility, freedom of action and my motivated team, we can make a decisive contribution and share in the company’s success on a daily basis. ” Stefan Kocher, Head of Warehouse and Shipping Team Spirit and Internationalism “What motivates me to give my all in performing my diverse job is the good work atmosphere at the company along with the strong team spirit and inter- nationalism I feel here. ” Carmen Andueza, Management Assistant, Sales Region West Europe Claudia Frey, Corporate Con- trolling Support HR Development and Expertise “R&M offers its employees excellent opportunities for development. I started at R&M as Assistant Head of Private Networks. Then I switched to business management and from there to controlling, where I work today. At R&M, I can optimally apply my entire range of experience and skills and greatly enjoy the diverse tasks I am given.” Claudia Frey, Corporate Controlling Support Respectful and Winning “As HR representative, I am responsible for the transfer of the corporate culture. I take “Swiss culture” to Asia. In doing so, I respect the unique traits of the local cultures. “Swissness” is winning us a lot of affection and market share in Asia.” Adeline Lim, Sales Support Adeline Lim, Sales Support and HR, Region East Asia and HR 13
    • Even Closer to the Customer – Re Truly Close to Customers Being close to customers extends beyond mere geography. It is equally important to us to understand differences in basic mindset and to be respectful of unique cultural and business practices, to be understanding of the special needs of each individual customer and to communicate openly in order to avoid misunderstandings. All these aspects help us to strike the right tone. Our sales organization is divided into seven regions based on the relative importance of the markets: Germany, Switzerland, Western Europe, Eastern Europe, Middle East, Asia/Pacific and Latin America. To ensure global avail- ability and healthy, sustainable growth, we operate regional hubs like the one Hans-Peter Legler in Singapore. We have also improved our position for future growth in key COO, Sales and Services markets by opening new country organizations in Bulgaria, the UK, and Australia. With our business etiquette guide, we try to sensitize our people locally and at headquarters to the unique characteristics of the individual markets. Generally Individual We pursue a multi-channel sales strategy to reach the customer over which- ever channel is the most suitable. For various key accounts, we work directly with the headquarters of international companies and build up worldwide network infrastructure with them. Another important sales channel is our network of qualified and certified distribution and installation partners in all important markets. When acting as subcontractors in large-scale projects, we enter into partnerships with general contractors and system integrators. 14
    • eport from the COO Sales Compelling Advantages... In every sales channel, we convince the customer by presenting irrefutable advantages. Our solutions are reliable and will remain sound investments in the future. Only a manufacturer whose business decisions are not dictated primarily by shareholder value can offer these types of solutions. We are models of flexibility in our development of customer-specific solutions based on a thoroughly modular product range and are above average in generating innovation. These strengths are attributable to the consistent training and certification of our local project, distribution and installation partners, and of course to the proverbial quality of our products and services, from consulting and logistics all the way to after-sales support. ... For Creating Lasting Customer Relationships We collaborate in Enterprise Business with leading customers around the globe in all vertical markets. This segmentation helps to offset cyclical fluctu- ations to a certain extent. For years, we have been cultivating mutually bene- ficial relationships with many customers in the carrier sector, national as well as local and regional network providers, such as NetCologne in Germany. Our business with some of these major carriers has grown dramatically over the past year. In 2008 we also succeeded in establishing business relationships with several highly promising new customers. 15
    • Supply Chain Management as a Link in Regionalization with Hub Development The first of five planned supply chain hubs was opened in Singapore in July 2008. The objective of this Asia hub is to put R&M closer to customers and shorten delivery times so it can meet customer needs even more effectively. The hub strengthens our distribution system while also allowing us to pro- cess some of the products for customer-specific solutions directly in the Asian market. Our guiding principle is to produce in the region for the region. Optimized Processes Our aim is to maximize our customers’ satisfaction by providing a world-class supply chain. To this end, we have optimized the entire process from planning to development, from purchasing to manufacturing and logistics. This has Peter Reichle been done centrally at headquarters and in each of the individual regions. The COO, Production and Logistics new ERP system has been quite helpful in these efforts. The total performance of the supply chain is constantly calculated with a series of key performance indicators (KPIs) and improved where required. The new building in Wetzikon will further increase efficiency in supply chain management starting in 2010. 16
    • n the Chain of Success – Report from the COO Operations Indispensable Values We are aware that much of our success is based on values considered typically Swiss. As our business becomes more regional and the hub structure is expanded, a question naturally arises: Can we continue to guarantee our Swissness in the face of all this change? The answer is a resounding “Yes we can!” For instance, the regional development engineers go through months of training at the headquarters in Switzerland. In bilateral transfers of experts, we regularly send a “cultural ambassador” from Switzerland to the regions for a given period. They effectively raise and strengthen awareness of our values among local employees and return to Switzerland with a treasure trove of experience from other cultures. Partner Management The transfer of Swiss values and Swiss quality consciousness is not confined to the company however. We have also been working for years at effectively conveying “Swissness” in our partnerships with suppliers and distributors. Any company wishing to supply R&M, for instance, has to meet a number of criteria. Environmental management is naturally one of them. R&M does more than lip service to sustainability: It practices sustainability daily. Quality Management To detect and avoid possible quality shortcomings early on and to live up to our claim of being a leader in quality, we hired a Quality Manager last year who has strategically aligned quality planning throughout the company. The objective is to guarantee high quality in the future at all times and in all places and thus to ensure a solid foundation for sustainable growth with appropriate company earnings. 17
    • There Is Just One World Language Targeted Expansion Increased customer benefit is a recurrent theme in our corporate communi- cations in keeping with our “Get More” program. Consequently, our commu- nication channels underwent further careful development this past year and were expanded or adjusted as needed. Even Clearer Connections Connections, our customer magazine, has a new look following the introduc- tion of a new layout in the year under review. The high quality of the content and our products and services is now matched by the high quality of their visual presentation. In Direct Dialog R&M made a successful appearance again last year at the ECOC Exhibition 2008 in Brussels as a leading international supplier of solutions for high-end fiber optic networks and as a quality-conscious premium partner for carriers moving toward Next Generation Networks. Existing contacts were deepened and new contacts were established as important investments in the continu- ation of sustainable growth. Direct Benefits with Reliable Media Universe, our full catalog, has become even more popular with our customers, both the printed version and the online version. It is a useful documentation guide for their projects or bids and a source of inspiration for new applications involving our products. This success is an unmistakable sign that we have understood the needs of our distribution partners and end customers and that we speak their language. 18
    • e – Our Customers’ R&M International – Close to Even the Most Far-Away Customers R&M present locally R&M present with local partners R&M is represented in over thirty countries with its own employees and marketing organizations. A worldwide partner network ensures global support. Current update and contact at: www.rdm.com 19
    • Reichle & De-Massari AG Binzstrasse 31 CHE-8620 Wetzikon Phone +41 (0)44 933 81 11 Printed in Switzerland – © Reichle & De-Massari AG – All rights reserved Fax +41 (0)44 930 49 41 www.rdm.com R321657/0/e/03.09/NZZ 20