Committed to excellence

AGENDA 2020

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Content

Customers 04 – 05

Product Range 06 – 07

Target Markets 08 – 09

Market Environment 10 – 11

Our Logistic Strategy / Company Alignment 12 – 13

Global Facts & Figures 14 – 15

WE GEAR OuR OPERATiONS TOWARDS LONG-TERM CuSTOMER

LOyALTy AND COLLAbORATiON WhiLE ENGAGiNG WiTh OuR PARTNERS

ThROuGh A hiGh LEvEL OF TRuST.

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Agenda 2020Committed to Excellence

Dear Employees,Dear business Partners,

Without doubt we are in a period of unremitting change. in the past we took great pride in being a purely European distributor. Today we have transcended these borders and operate worldwide with local teams in Europe, Asia and North America.

Achieving a little more than the previous year is no longer enough. Therefore our objective is to grow faster and quicker than the market to increase our market share in all territories as a result. Achieving goals is difficult without a predetermined path. Through Agenda 2020 we can literally see the path leading up to that goal. Join us to make a fresh start on the road to success. A company is only as strong as its employees and partners.

helmut Rudel Thomas Rudel

Semiconductors

Passive Components

Electromechanical

Components

Storage Technologies

Displays & boards

Wireless Technologies

The technical competence from Rutronik

Global and individual consulting where you are: by competent sales staff, application engineers and product specialists in Europe, Asia and North America.

Consult – Know-how. Built-in.

The product portfolio from Rutronik

Wide product range of semiconductors, passive and electromechanicalcomponents, storage, displays &boards and wireless technologies for optimum coverage of your needs.

Components – Variety. Built-in.

The delivery service from Rutronik

innovative and flexible solutions: from supply chain management to individual logistics systems.

Logistics – Reliability. Built-in.

The qualification drive from Rutronik

Technical support: through online services, seminars, PCNs, quality management and much more.

Support – Service. Built-in.

helmut RudelPresident

Thomas RudelCEO

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CUSTOMERS

Tailormade solutionsfor our customers' growth

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For our EXISTING customers

WE are supporting our customers with our design-in experts to realize latest state-of-the-art technology based on high tech key electronic components.

WE are offering our customers the high-est quality as a global distributor, based on local support due to our positioning in all territories, a full range of services irrespective of the production site, and we promote a competitive process.

WE are expanding our Global Key Account Management Team for our global custom-ers in Europe, Asia and North America.

WE are offering all customers our entire product portfolio via our e-commerce plat-form RuTRONiK 24 including intelligent search, eProcurement, PCN database and easy handling.

WE accompany our customers throughout the demand creation process from devel-opment to the series production stage.

WE gear our operations towards long-term customer loyalty and collaboration with our partners characterized by trust.

WE offer our customers best-in-class logistic systems and tailor-made supply chain solutions.

For our NEW customers

WE are expanding our sales structure to support new customers.

WE are expanding our sales organization RuTRONiK 24 in all countries to develop and support new customers.

WE are expanding our sales and mar-keting organization in support of our customers who operate globally.

WE are introducing global Key Account Management in support of the entire range of service for our customers in new territories.

For ALL our customers

WE are focusing on the future markets of Mobile internet, Automation of Knowledge Work, internet of Things, Cloud based Services, Advanced Robotics, Autonomous and Near-autonomous vehicles, Energy Storage, Medical, Renewable Energies, Lighting, Wireless Connectivity, Chip Card Technology and Security as well as specific applications in the industrial and Automotive Segment.

WE are offering new products, latest technologies and new services to increase customers' efficiency.

WE are offering best in class relationships for our customers and suppliers.

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Semiconductors

WE are offering best-in-class technical consulting for our customers to reinforce their global market position based on highly innovative semiconductor solutions.

Passive Components WE are creating added value for our

customers with innovative passive compo-nents for new markets and applications.

Electromechanical Components

WE are strengthening our customers through new innovations in electrome-chanical components and ongoing product portfolio adjustments in line with future customer and market requirements.

Our product marketing strategy

Our PRODUCT STRATEGY

WE shall harmonize our Line Card by way of franchise extensions to offer our customers a comprehensive worldwide support network. OuR operations focus on manufacturers with a global alignment and innovative products.

WE are pushing an interactive collabo-ration between all product divisions and utilization of existing synergies to offer a perfect symbiosis for our customers.

Our MANUFACTURERS STRATEGY

WE focus on our key manufacturers to secure and expand the electronic component business. Our goal: We shall be one of the top 2 distributors globally supporting all key manufacturing lines in order to strengthen the competiveness of our customer.

WE shall have a minimum of two principal suppliers in all product ranges for each category: supporting our customers with the most innovative technologies and providing one for the best offers.

WE are adjusting our product mix in line with the industry's actual requirements and future technologies. For our custom-ers this provides a huge reduction in the procurement sources and therefore a greater increase in efficiency.

WE are offering our customers a high level of delivery reliability through the constant availability of standard products.

PRODUCT RANGE

Wireless Technologies

We are offering our customers a wireless portfolio that is unrivalled in breadth and depth, tailored to almost all customer requirements in order to be a trendsetter not just a follower.

Storage Technologies

We are providing storage solutions for our industrial customers and system integra-tors geared toward target markets such as automation and control technology segment as well as measurement, weigh-ing, medical and system technology.

Displays & Boards

WE are offering best fit kit solutions for our customers to reduce time-to-market for their end-applications.

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Our Future Target Markets – 12 Disruptive Technologies* will transform the global economy in 2025 and Electronic Components is the key

increasingly inexpensive and capable mobile computing devices and internet connectivity

WE are offering all components for all wireless standards for all applications to bring people into the connected world.

Mobile Internet

intelligent software systems that can perform knowledge work tasks involving unstructured commands and subtle judgments

WE are offering with “RuTRONiK EMBEDDED” the hardware to realize artificial intelligence, machine learning and natural user interfaces. Our next generation hMi (human Machine interface) will be touch-less and focuses on a combination of senses.

Automation of Knowledge Work

Network of low-cost sensors and actuators for data collection, monitoring, decision making and process optimization

WE are offering complete solutions with “RuTRONiK SMART” the combination of smart sensors and wireless technologies.

Internet of Things – IoT

use of computer hardware and software resources delivered over a network or the internet, often as a service

WE are offering the embedded hardware and all electronic components to realize internet-based services and connectivity solutions. With our portfolio we are providing greater flexibility and responsiveness for new Cloud based business models.

Cloud Technology

increasingly capable robots with enhanced senses, dexterity, and intelligence used in automated tasks or to augment humans

WE are offering vertical solutions based on our components to realize advanced machine vision, artificial intelligence, M2M communication, enhanced sensors and fast, accurate actuators.

Advanced Robotics

Exploration and recovery techniques that make extraction of unconventional oil and gas economical

WE are offering electronic components for applications, such as gas and liquid analytics, precision instrumentation and measurement sensor based systems as well as for control systems for drilling and hydraulic fracturing.

Advanced Oil and Gas Exploration and Recovery

TARGET MARKETS

vehicles that can navigate and operate with reduced or no human intervention

WE are offering electronic component solutions which bring substantial value in systems that assist drivers in steering, braking and collision avoidance. Furthermore we will keep our current focus on the future automotive market segment in order to support our customers in their target application for autonomous and near- autonomous vehicles.

Autonomous and Near-autonomous Vehicles

Fast, low-cost gene sequencing with advanced big data analysis and synthetic biology – writing DNA

WE are offering electronic components for medical and bio technology to realize rapid sequencing and advanced computing power. As a result, scientists systematically test how generic variations can bring about specific traits and diseases, rather than using trial and error.

Next Generation Genomics

Devices or systems that store energy for later use, including batteries

WE are offering electronic components for power management systems for batteries, super capacitors, fuel cells and smart grids. Advanced energy storage solutions will make the electric vehicles (hybrid, plug-in-hybrid and all-electrics) competitive. Referencing power grid, advanced storage systems can improve the quality by controlling the frequency variations and peak loads.

Energy Storage

Additive Manufacturing techniques to create objects by printing layers of material based on digital models

WE are offering all components to design and produce a 3D-printer. 3D-printing enables on-demand production which has huge implications for supply chains and for stocking spare parts – a major cost for manufacturers. Tailor-made logistic systems are necessary to realize the return on investment. We already have logistic solutions available.

3D Printing

Materials designed to have superior characteristics e.g. strength, weight, conductivity or functionality

WE are offering electronic components from manufacturers that continue to invest in R&D for new materials. For example, advanced nanomaterials such as graphene and carbon could drive a significant impact to create new types of displays and batteries.

Advanced Materials

Generation of electricity from renewable sources with reduced harmful climate impact

WE are offering electronic components for all applications, such as inverters, smart heating, smart grid and e-metering; realizing the rapidly growing proportion of renewable electricity generation and the communication between those systems.

Renewable Energy

*Source: McKinsey Global institute Analysis

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MARKET ENVIRONMENT

The trend to move manufacturing away from point of design and to lower cost production areas (for example Western Europe to Eastern Europe and China, uS to Mexico and China, Japan to China).

WE are focusing on local support worldwide where ever our customers have their design centers or production sites.

The evolution of the internet and other methods of trading electronically.

WE are focusing on further investments in our iT network and have implemented best in class worldwide harmonized processes.

The emergence of four truly worldwide market-dominating distributors through investment and/or acquisition in new geographies.

WE are focusing on further investment based on organic growth to offer our customers and suppliers a strong alternative solution in the electronic components market.

Direct resources from components manufacturers for supporting Tier1 customers is being reduced in Europe and increased in some geographical regions where business is growing faster.

WE are focusing on further investments in personnel services for sales, marketing, engineering and logistics in Europe in order to provide best-in-class service for our distribution customers and our direct Tier1 customers.

The reduction in direct sales forces in Europe and uS continues and this means a growing reliance is placed on distributors in the design-in centers of the world, traditionally uS and Europe, to promote manufacturers’ products. Marketing and technical resources are expensive whether provided via the manufacturer or the distributor. There are therefore, conflicting pressures between keeping margins up to support the resources put into design, versus the margin pressure due to worldwide price visibility.

WE are focusing on our local support strategy within the worldwide design chain and supply chain. As a result we are offering the required support independent from cost center organization.

Major distributors and manufacturers are increasingly developing worldwide franchise partnerships and the biggest are getting bigger and taking an increased amount of the market. This is most noticeable in Europe where the share of the DTAM of the top 4 now accounts for almost 50% of the market and the share of the top ten has grown to 64%. At the same time the distribution share of the total market has been rising.

WE are focusing on long-term partnerships with our suppliers in order to offer the best balance between latest technology, valuable price and highest quality and make these solutions accessible for all customers worldwide.

in the past some distributors published large books showing all the products that they aimed to provide from stock and

thus became known as the ‘Catalog distributors’. These companies now operate globally. With the now dominant use of the internet – the printing of large catalogs on a regular basis is both expensive and unnecessary with these distributors having invested in extensive websites offering considerably more than just a ‘catalog of parts’. These companies offer a range of services including application information, data sheets, environmental data and much more. These distributors are moving away from the catalog image and are now best described as ‘high-service distributors’.

WE are focusing on a perfect online service. With Rutronik24 we have created a modular platform that simplifies your business processes significantly. The advantages of rapid online orders are combined with a personal advisory service, tailored to your needs. This has not replaced our personal service; on the contrary: we are adding to it. For even better customer relationships and flexibility to speed up your own processes.

This globalization of distribution brings with it additional challenges for the manufacturers; the major ‘high-service’ distributors are seen as a good way to address the mass market and these distributors can afford to be demanding in terms of the support they look for.

WE are focusing to support the mass market as well as specific market segments with further investments in vertical market know-how like Rutronik EMBEDDED and Rutronik SMART.

Our Market Environment – Global Distribution with Global Sales Channels

Our Logistic Strategy

Our new central warehouse located near

our headquarters is the key for success

in the next decade. As a result we are

able to provide optimized and centralized

logistic processes.

WE are offering tailor-made logistic

services in Asia, supported by our

Asian warehouse based on scalable

and standardized processes.

WE are implementing a North American

warehouse in order to fulfill the local

requirements of our North American

customers based on process structures,

already in place worldwide.

WE are investing in further fully

automated logistic processes based

on data exchange via EDi reducing

cost of ownership for our partners.

Our Company Alignment

PERSONNEL DEVELOPMENT

WE have developed modern

promotional schemes with comprehensive

training and further education programs.

A competitive edge in respect of know-

how is now more important than ever.

WE promote the development of

up-and-coming specialists and

executives within the company.

WE are reinforcing our knowledge

management by establishing a central

platform with Rutronik internal specialist

know-how. OuR goal consists of training

the most talented business and technology

specialists in the future while offering

them the best possible positions.

QUALITY MANAGEMENT

WE are expanding the quality control

circle as a central platform for internal

error and measure management: Analysis

and optimization of processes and

measures. Regular quality control circle.

WE live our quality management:

implementation of self-assessments

to supplement the internal audits with

integrated measures and training

management. Certification for our

quality, environmental and occupational

safety management and additional

certification of our Dry-Pack system

and our ESD conformity.

WE are introducing a new complaints

management system: Transparency in

the processing cycle and therefore

identification of optimization potential.

Online / web support for complaints.

WE optimize supplier management:

Expansion of manufacturer / supplier

evaluation.

Logistic Strategy andCompany Alignment

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Consult worldwide

Technical Consulting

Commercial Consulting

Logistical Consulting

Components worldwide

Semiconductors

Passive Components

Electromechanical Components

Displays & boards

Storage Technologies

Wireless Technologies

Logistics worldwide

Supply Chain Solutions

Logistic Modules

Logistic Fulfillment

value Added Services

Procurement

Consulting

Support worldwide

Online Services

Seminars, Workshops and TechDays

Product Change Notifications

Quality Management

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· More than 70 offices worldwide· Over 1300 employees· Present in America, Asia and Europe

GLOBAL FACTS & FIGURES

Rutronik Elektronische bauelemente Gmbh | industriestraße 2 | 75228 ispringen / Pforzheim | GermanyTel. +49 (0) 7231 801-0 | Fax +49 (0) 7231 82282 | E-Mail: rutronik@rutronik.com | www.rutronik.com

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