Balluff 2606 Final

Driven By Innovations

Technology Quality Customer Satisfaction

Highest Performance

Know How

Welcome to the company general meeting of theBalluff GmbH

6/28/2007

http://www.balluff.de/HMI2003/Programm_de/A-opto.html

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Highest Performance

Know How

Agenda

Organigram Position Report Executive Summary Mission / Visions / Values Actual-Analysis Products Marketing / Sales Purchasing / Logistics Finance Risk Management HRM Company‘s Outlook










Highest Performance

Know How

Organigram Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis

Products Marketing /

Sales Purchasing /

Logistics Finance Risk

Management HRM Outlook

Ulli PfaffCEO & HR

Jörg GerczukMarketing & Sales

Risto HauerProduction & QM

Carsten SchübelerPurchasing &

Logistics

Michael WegnerCFO










Highest Performance

Know How

Leading manufacturer of inductive, optical and magnetic sensor solutions

Turnover 2006: 847,4 Mio (+ 14,8%) EBIT 2006: 142 Mio / EBIT increase: 50,1 Mio Net income for 2006: 78,1 Mio, profit increase of

18,8 % 4.706 employees (2005: 4.201 employees)

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Balluff 2006 – Position Report










Highest Performance

Know How

Turnover annual growth of >8% on average until 2010 Higher profit margins (> 5% p.a.) Equity ratio of at least 30% Maintain Innovation and quality leader Attractive employer Family Ownership Increase spending on R&D (up to 25% of net profit)

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Executive Summary

Quality leaderStable Growth Innovation leaderProfit

Objectives 2007

Business success

Core Competences:

• Integrated sensor solutions

• Consulting and implementation: customer production process

Core Products:

• Distance Control System

• REM Control System










Highest Performance

Know How

Mission We want to create a safer world and improve living

standards sustainably

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Visions / Mission / Values

Values Corporate Social Responsibility Integrity Mutual respect Innovations for the success of our costumers

Vision Highest productivity and quality for our clients‘ supply chain Most innovative inductive & optical sensors Worldwide market leader for sensor solutions










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Actual Analysis

Little intercultural competence

Lack of supplier-flexibility and cooperation

Shortage in staff recruiting of experts

Comparatively high costs for Research and Development

Strong brand

Large number of long-term clients

High accuracy, quality and life cycle of the products

Optimal compatibility and flexibility with suppliers and customers products

WeaknessesStrengths










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Actual Analysis

Shorter product life cycles

Increase of Substitutes from Asia

Growing levels of product piracy

Enhanced conscience of safety measures

Stricter safety laws and traffic regulations

Growing automobile market in quality and quantity

World trade liberalization

ThreatsOpportunities










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Industry Analysis

BARRIERS TO ENTRY

• No expected retailiation

• Positive government policy

THREAT OF SUBSTITUTES

• Price-performance trade-off of substitutes

• High buyer inclination to substitute

SUPPLIER POWER

• Strong position of suppliers

• Low threat of forward integration

DEGREE OF RIVALRY

• Only a few competitors

• Growing market causes

• Product differences

BUYER POWER

• Strong level of bargaining

• Price sensitivity

• Strong buyer concentration










Highest Performance

Know How

Product portfolio Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



• Sensor program: inductive sensors, sensors for pneumatic cylinders

• Optoelectronical program: distance controll sensors, REM-control sensor

• Mechanical program: electromechanical positon switch, mixed equipment switch

Offer wide range of high quality and innovative sensors










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Production:• Testing station after each assembley station (0,00001% Failure

output)

Product:• Improved measurement accuracy and life cycle time from 5 to 10

years

Quality

Flexibel production:• Maximise value of production• Standartized componants

Flexibel production:• Single to mass• Tool change time Production

• Designed for easy assemply at automotive customer

• Designed for all commercial and private consumer

• Reducing 16 parts to 4 parts• Designed for different

customers and easy to assemble

Developmentand Design

REM control sensor

Distance controlsensor

Products










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Products










Highest Performance

Know How

Marketing Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /


Management HRM Outlook Brand awareness: security and

reliability Product improvement: new developmentsPromotion

B2B, Subsidiaries and Sales Representatives

B2B, Subsidiaries and Sales RepresentativesDistribution

High Price Segment, Target Price + permium margin

High Price Segment, Target Price + permium marginPricing

Commercial vehicles; Passenger vehicles to start in 2008/09

Passenger and Commercial vehiclesSegmentation

Highest Precision through latest Technology

Highest accuracy rate in any conditionUSP

Highest Innovation, High Quality, Maximum Compatibility and Flexibility

High Quality and Innovation, Maximum Compatibility and Flexibility

Positioning

Innovation LeadershipMarket LeadershipStrategy

REM Control SensorDistance Control Sensor










Highest Performance

Know How

Sales Strategies Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



• Development with customer• Flexibility for customer needs• Triability: Promotional Offers • Compatibility: One fits all product• Mass reductions according to client status • Emphasis on Financing function• Improve After Sales Service

Enhance Customer Satisfaction

Increase Sales










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /


Management HRM Outlook Germany 25% / USA 20% / Japan 15% /

China 12%

Sales










Highest Performance

Know How

• Single sourcing, dual sourcing only with important components

• Global sourcing

• Modular sourcing

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Sourcing Strategies

Reduce TOCO, Increase Flexibility Guarantee Highest Quality










Highest Performance

Know How

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /


Management HRM Outloók Germany 20% / USA 15% / Japan 12% /

South Korea 12%

Purchasing










Highest Performance

Know How

600.000 €

750.000 €

900.000 €

1.050.000 €

1.200.000 €

2003 2004 2005 2006 2007 2008 2009

Turnover Growth Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /












Highest Performance

Know How

0%

5%

10%

15%

20%

2004 2005 2006 2007 2008 2009

Turnover Growth Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /












Highest Performance

Know How

EBIT Margin

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 2007 2008 2009

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /












Highest Performance

Know How

Return on Equity

0%

5%

10%

15%

20%

25%

2003 2004 2005 2006 2007 2008 2009

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /












Highest Performance

Know How

Risk Management Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



• Political risks - Stability, Regulations• Financial risks - Exchange rates, SWAP• Economic risks - Inflation / Interest rates

Improvement of Corporate Governance










Highest Performance

Know How

Personnel Recruitment Professional Training Performance oriented salary model

Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



Human Ressources Management










Highest Performance

Know How

Company´s Outlook Organigram Position

Report Executive

Summary Mission /

Visions / Values

Actual-Analysis


Sales Purchasing /



• Turnover Growth of between 10% and 15 % p.a.• Turnover approx. 960 Mio Euro in 2007• Further net profit improvement in 2008• Enhance identification supplier cooperations

Secure Continuous Growth and Prosperity for BALLUFF






