Facts & Figures 2008
(in millions of CHF consolidated)
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 %*
* 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.
Average development expenses over the last five years: 4 % of sales.
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%
R&M is wholly owned by Messrs. Hans Reichle, Martin Reichle and Peter Reichle.
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
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
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.
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
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
Member of the Board of
Für den Verwaltungsrat. Directors
Hans Hess, Chairman
Member of the Board of
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.
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
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
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
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.
Asserting Leadership with Renewed
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
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
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
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-
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
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-
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
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
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
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.
eport from the COO Sales
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.
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.
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.
n the Chain of Success – Report from the COO Operations
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.
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.
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
There Is Just One World Language
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
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
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
A worldwide partner network ensures global support.
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