Logical MotionAnnual Report 1998

Overview

Net sales

Orders received

CHFm500400300200100

211.9 272.3 435.5 420.1 557.8

CHFm500 400300200100

238.1 255.6 388.4 474.9 551.0

EBITA

CHFm

3020100

4.2 -3.5 7.2 21.9 28.6

Net income

CHFm20 151050

CHF8 6420

10.2 -3.9 2.2 13.2 22.1

Employees at year end

20001750150012501000

1097 1121 1323 1709 2063

94 95 96 97 98

Earnings per share (after share split August 1997)

3.7 -1.4 0.8 4.8 8.0

Mission

Logistics solutions for supply chain excellence

Swisslog is a multinational logistics automation company. It offers its customers

industry-specific, integrated solutions covering the whole spectrum of computer-con-

trolled information and materials flow technology. On the basis of its IT know-how

and a wide range of special systems and products, Swisslog helps its customers achieve

supply chain excellence. The aim is to minimise their logistics costs and tied-up

capital and improve their productivity and service performance.

Swisslog integrates the three most important areas of competence and services in

the field of logistics automation and offers its customers comprehensive solutions from

a single source:

– Global consultancy and planning for industry-specific solutions and best practices.

– Tried-and-tested technologies and proven software competence in integrating

the flow of materials and information.

– Intensive support for its customers through consultancy and service during the entire

life of their logistics systems.

Regardless of their size, Swisslog customers are among the best in their industries. On

the basis of many years of consultancy work and partnership, Swisslog plans, imple-

ments, modernises and maintains logistics systems – from simple, manual installations

to fully automated and computer-controlled systems.

With over 2000 specialists at its disposal, Swisslog offers its customers all strategic

core services of the entire supply chain. A continuous process of know-how transfer via

Swisslog's own networks enables Swisslog's experts to keep on developing new solu-

tions for selected industries.

Throughout the world, Swisslog is represented with subsidiaries in 19 countries in

Europe, Asia, Australia and the United States. The parent company is based in Buchs ,

Aarau in Switzerland.

Contents2 Letter to Shareholders

6 Swisslog Offering

9 Logical Motion 1998: Building one global Company

15 Managing Supply Chain Information

25 Networking Expertise and Know-how-Transfer

43 Lifetime-Partnership

49 Investor Relations

54 Organisation

56 Addresses

Highlights

JanuarySwisslog Industry Practice Pharma hands over to globally

active insulin manufacturer Novo Nordisk, an integrated fully

automated filling and distribution centre in Hilerød,

Denmark.

FebruaryRepresenting a first for Europe, the “Tiger” software program

for manual and semi-automated material flow systems

is installed at the meat products group Cebeco and another

Dutch wholesaler.

MarchSwisslog Software has its own management team. Two

hundred and ten Swisslog Software specialists from a variety

of different regions provide IT expertise directly to clients.

AprilSwisslog hands over to Woolworths Supermarkets in

Australia the new Minchinbury Distribution Centre in Sydney.

It is the largest distribution centre of its kind in the world.

Swisslog Customer Support will be responsible for technical

operation and supervision of plant maintenance.

MaySwisslog launches a new corporate design. Key statements

on corporate philosophy, profile and strategy appear in the

first Swisslog company brochure.

JuneSwisslog is commissioned by the Hang Zhou Cigarette

Factory in China to build a new automated warehouse

management and material flow system.

Swisslog Industry Practice Pharma signs a contract for

an integrated production plant for KRKA, Slovenia's largest

manufacturer of pharmaceuticals and cosmetics.

JulySwisslog is awarded a contract by ball bearing manufacturer

SKF Italia to completely overhaul their plant.

Swisslog hands over to Cathay Pacific Catering Services an

automated storage and distribution centre including a

warehouse management system for the new Chek Lap Kok

International Airport in Hong Kong.

AugustSwisslog receives a contract from NTUC/GLS, Singapore's

largest supermarket chain, to install a “Tiger” warehouse man-

agement system.

Diapar, a local wholesaler in the Greater Paris area, re-

places its old warehouse management systems with the new

Swisslog-developed “Shark” software package.

Swisslog acquires internationally active logistics system

provider Munck Automation Technology Inc., Newport News,

USA, and its Norwegian affiliate Munck Autech AS.

SeptemberSwisslog and the Finnish Tikkurila CPS set up a joint ven-

ture under the name of Corob, formerly a 100%-owned sub-

sidiary of Tikkurila CPS. The two companies combine their

expertise in the field of colourant dispensing machines within

the new company.

Swisslog completes the Phoenix project following a fire. The

goods transport system was installed in record time at Boots

The Chemist, Beeston, Nottingham, UK.

OctoberSwisslog's new sales office in Leipzig, Germany, starts up

its operations.

Swisslog receives an additional order for 14 newly developed

RoboPick order-picking robots for the Woolworths

distribution centres in Sydney and Melbourne, Australia.

Swisslog hands over a new final assembly line to Auto-

motive Manufacturers Malaysia (AMM), a joint venture

between Citroën and Proton.

NovemberA leading UK food company awards Swisslog a contract to

build a new fresh food distribution centre. The order includes

four MultiPick robotic systems. In the food & beverages

customer segment alone, contracts for more than ten Multi-

Pick systems were received in 1998.

DecemberSwisslog goes online with its new website at:

http://www.swisslog.com

Swisslog hands over an automated finished goods warehouse

and distribution centre to Tobacco Importers and Manu-

facturers (TIM) in Petaling Jaya, Malaysia.

Swisslog hands over to Galbani & Danone, Milan, Italy, a newly

built storage and distribution centre for dairy products.

Pharmacia Upjohn commissions Swisslog to build a storage

and warehouse management centre in Ascoli, Italy.

Swisslog hands over to Thai-based stationery manufacturer

and distributor Siamwalla a distribution centre equipped

with the “Tiger” software system.

Dear Shareholder

to a slow start at the beginning of the year, the Special

Systems and Products segment gained in strength as the year

progressed. In addition, successful liquidity management

and lower taxes helped to improve Swisslog's net income.

These advances are the result of the systematic implemen-

tation of our corporate strategy. Swisslog further developed its

position as a supplier of integrated systems and software in

all sectors of logistics automation and material flow management.

Its solutions are backed up by a comprehensive range of

customer support services. Globally speaking, Swisslog already

ranks among the few companies in this sector which have

successfully made the transformation from a product-oriented

manufacturer to a market-focused software and know-how

company. Major milestones were achieved in 1998:

Stronger market presenceIn 1998, Swisslog grew into an organisation with an unmistak-

able image and full market coverage. Today, Swisslog offers

1998 was a successful year for Swisslog. The company continued to expand its international position as a leadingprovider of logistics automation and achieved impressive headway in all sectors of its operations and on its targetmarkets in Europe and North America. As in previous years,Swisslog also witnessed solid improvements in sales andearnings. Due mainly to acquisitions, net sales increased by16% to CHF 551.0 million, with the growth in Europe morethan compensating for the contraction of demand in Asia.Earnings before interest, taxes and amortisation of goodwill(EBITA) came to CHF 28.6 million, which exceeded the 1997result by 30.6%. At CHF 22.1 million, net income wasup 67.4% from the figure for the preceding year. Orders in-creased by a very gratifying 32.7% to CHF 557.8 million.

The Logistics Systems segment, which boosted earnings on

the basis of systematic margin and risk management by 143%

to CHF 18.5 million, made a substantial contribution to the

favourable income growth seen by Swisslog. After getting off

its products and services worldwide with a unified corporate

design and a consistent business philosophy.

In the second half of the year, Swisslog also increased its pres-

ence in the US market by acquiring Munck Automation

Technology, Inc. in Newport News, Virginia, and its Norwegian

affiliate Munck Automation Technology AS. As a company

providing integrated solutions to all problems associated with

logistics automation and material flow management, Munck

Autech is one of the best known suppliers on the American market.

For years, leading firms among the Fortune 500 have placed

their trust in the systems and software competence of this pio-

neering company. With the integration of Munck Autech,

Swisslog has created a strong base for enlarging its operations

in the United States, which promises to be the world's most

strongly growing market in the years ahead.

The Corob joint venture with Tikkurila CPS (Finland) enables

Swisslog to pool Tikkurila's vast reservoir of experience in

the field of colourant systems with the broad-based expertise

amassed by Swisslog's Finnish subsidiary Cimcorp in the

colourant dispensing machine sector. The combining of forces

on the dynamically expanding colourant market will open

up new opportunities to better serve international colourant

producers and to further amplify the status as a centre of

competence in this area.

Customer focus: Industry practices and lifetime partnership

Swisslog's strategy is to combine the best solutions from

selected industries. The formation of the sector-focused Industry

Practice Groups was successfully completed in 1998. Swisslog's

industry specialists today service clearly defined market segments

worldwide, including in particular distribution, pharmaceuticals,

food & beverages, automotive and print & paper.

The aim of the Industry Practice Groups is to strengthen

Swisslog's reputation as having the most competent specialists –

from both a technical and a business standpoint – and to

earn worldwide recognition for the company as the leader in

industry-specific solutions in logistics automation.

Software competence

Swisslog is a software company. For more than 25 years Swiss-

log has been supplying the market with successful logistics

software. In 1998, Swisslog consolidated its groupwide software

competence to establish a software centre of excellence with

its own management and over 200 employees worldwide. The per-

formance focus of Swisslog Software is on modular software

products which can be configured to meet specific requirements.

2…3

growth rates of 5 to 10% in the various regions the group

anticipates continued consolidation in this sector, which will in

turn increase the demand for integrated system suppliers such

as Swisslog.

From the geographical standpoint, focus will continue to

centre on developing the US market, where Swisslog hopes to

generate a sizeable share of sales in coming years.

As a company of first choice for selected segments of industry,

Swisslog is concentrating on integrated solutions from a

single source which will combine consulting, software, special

systems and customer support. Swisslog also plans to further

strengthen its proven, groupwide competitive advantages: its

With its current range of software, Swisslog systematically covers

all markets for manual and partly automated systems, which

in future will also account for a substantial share of all solutions.

In 1998, Swisslog developed surveillance and control software

with a Java interface. Another success scored in the software sector

was the combination and integration of Swisslog software with

SAP management software modules certified by SAP. Swisslog is

also SAP-recognised consultant firm.

The pace of development in the software sector will accelerate

in the years ahead. With the services it now offers in the

software sector, Swisslog already occupies a pole position in

this industry, especially in Europe, and is thus poised to play a

major role in setting market standards. Over the medium term,

Swisslog expects software operations to account for its strongest

sales and earnings growth.

Customer Support

Swisslog Customer Support is a lifetime partner for the group's

customers. The services offered by Customer Support are modular

in conception and range from individual, selected services to

comprehensive support contracts. Today, Swisslog employs some

500 people worldwide in its Customer Support segment.

In 1998, Swisslog further enlarged its service network worldwide

in line with its strategy objectives. Additional remote control

centres were established from which Swisslog can provide around-

the-clock surveillance and control of customer facilities.

Swisslog's aim is to expand its remote control services in all

regions.

As systems age and become more complex, the demand for support

services and partial or total renovation will show disproportion-

ately strong growth in coming years. Swisslog therefore expects

its Customer Support operations to generate very high growth rates

in sales and earnings during the years ahead as compared with

other activities.

Further acceleration of growth in the years ahead

Swisslog is planning on further earnings-driven growth for the

current year. Standard software products and the expansion of

customer service operations will play a pivotal role. Geographically

speaking, Swisslog expects to see the strongest growth in the

United States, where market development is being intensified.

Over the medium term, Swisslog aims to step up efforts to boost

sales and earnings growth with the focus on software, information

technology and customer support and to establish itself world-

wide as the leading provider of profitable solutions for logistics

systems and material flow management. With annual market

registered share. Swisslog will continue to pursue an earn-

ings-oriented dividend policy that will allow the growth of the

company to be financed by self-generated funds.

Swisslog achieved much in 1998. Through their personal commit-

ment and flexibility, Swisslog's highly competent employees

contributed substantially to our group's success. We wish to thank

them most sincerely for their exceptional performance in a very

competitive international environment. We also wish to express

our gratitude to you, as a shareholder, for your continued interest

and confidence in Swisslog in 1998.

For the Board of Directors

lean and flexible structure and the creative curiosity and

cultural openness of its personnel.

Board of Directors

The Annual General Meeting marks the end of the terms of

office for Truls D. Berg, Konrad Peter, Juhani Anttila, Hans

Hulsbergen and Guido Patroncini as members of the Board of

Directors. They are all standing for reelection.

Dividend proposal

The Board of Directors will propose to the Annual General

Meeting an increase in the dividend of 25% to CHF 2.50 per

Truls D. Berg

Chairman

Buchs/Aarau, April 1999

Juhani Anttila

Delegate of the Board

4…5

Swisslog Offering

Logistics ConsultingSystem Design and RealisationInformation Technology

Transport SystemsStorage SystemsHandling Systems

Customer SupportModernisation

Logistics Consulting– Consultancy and workshops

– Strategy definition

– Location and site studies

– Feasibility studies

– Benchmarking

– Operational analysis

System Design and Realisation– Data analysis

– Concept and detailed planning

– Engineering and specifications

– Simulation

– System integration

– Project management

Information Technology– Host interface consultancy

– IT and logistics consultancy

– Warehouse management software

– Material flow control software

– Device control systems

– Forklift supervisory systems

Transport Systems– Automated Guided Vehicles (AGVs)

– Pallet conveyors

– Unit load conveyors

– Electric monorails

– Power & Free

Storage Systems– Automated high-bay warehouses

– Automated bin and tote stores

– Refrigerated and freezer stores

– Automated buffer stores

– Automatic stacker cranes

Handling Systems– Robotics

– Automated order picking

– Manual order picking

– Single- and multi-stage picking

– Sorting Systems

– Goods-to-man solutions

– Man-to-goods solutions

Customer Support– Preventive maintenance

– 24-hour hotline

– Corrective support on site

– Remote software support

– Full technical operation

– Training

– Spare parts management

– Continuous consultancy

Modernisation– Analysis of existing systems

– Consultancy and realisation

– Software upgrades

– Minimal disruption of operations

Comprehensive Supply Chain Solutions:

6…7

Logical Motion 1998: Building one global Company

For Swisslog, the main features of the 1998financial year were internal growth, well-targeted acquisitions, strategic shareholdingsand simultaneous integration of IT skills andapplication and industry-specific expertise. In this way, the company systematically andsuccessfully continued to put the strategicobjectives developed during the previous year

8…9

into practice. As a result, today Swisslog is a more globally active company, familiar withthe needs of a future-oriented automatedmaterials flow, and meets those needs irrespec-tive of the industry, location and size of its customers. Through long-term planningand systematic implementation, Swisslog hasestablished a strong global presence.

Building one global Company

On the basis of experience gained from many

thousands of installations, Swisslog designs,

builds, services and modernises logistics systems

for its customers which offer the security of

tested quality and all the advantages of individ-

ual solutions.

Swisslog's strength lies in the cultural diversity

of its employees and customers, who are at

home in America, Asia, Australia and Europe.

This gives Swisslog its unique, global profile.

No other company in this sector is more inter-

national and more open to different cultures.

SoftwareSwisslog covers the full spectrum of infor-

mation technology requirements for the mate-

rials flow process. Thus, Swisslog Software

employs over 200 warehouse management and

materials flow specialists to develop, advise,

implement and maintain information techno-

logy for logistics applications on four conti-

nents.

Industry Practice GroupsThe global Industry Practice Groups (IPGs), which

bring together the entire industry-specific

expertise distributed through Swisslog, enable

optimum customer solutions for selected

industries – from the analysis of requirements

to the development and installation of commer-

cially and technically optimised logistics solu-

tions.

Global Information NetworkSwisslog is operating increasingly independently

of locations. A groupwide Global Information

Network (GIN) is to be introduced in 1999.

It simplifies the exchange of ideas, solutions

and data. This in turn standardises processes

and routines and guarantees the consistent

quality of all solutions worldwide. Within a very

short time, competence and experience are

brought together and processed into a solution

plan that reflects the standards required by

the customer. Co-operating and communicating

across and beyond continents for customers

from different commercial and cultural spheres is

all part of Swisslog's day-to-day operations.

Worldwide Customer SupportSwisslog is a lifetime partner for its customers

and its global presence guarantees local

presence and closeness. You have a partner

you can turn to throughout the entire service

life of your equipment. 1999: Year of Customer

Care. Swisslog's “Year of Customer Care”

campaign is aimed at proactively promoting

customer care and service. This means that

customers' future problems are anticipated by

the Swisslog Customer Support employees.

Preventive solutions are then offered for prob-

lems that customers themselves might not

have yet recognised. In 1999 Swisslog is conti-

nuing to place strong emphasis on customer

support, not least in respect of outstanding

questions concerning the date switch at the

turn of the millennium.

Emergence of a new Swisslog CorporateDesignThe visible external expression of the develop-

ment into a company with a common objective

and strategy is the adoption of a uniform

groupwide corporate identity. As symbols and

actions conducive to unity, brochures, pre-

sentations, buildings, products, website and

tradefair appearances create identity and inner

strength. They promote the integration and

synergies that find expression in successful joint

projects. Last April at CeMAT 1998, Europe's

biggest trade fair for materials handling and

logistics systems, Swisslog presented itself as a

single company for the first time.

10…11

Geographical expansionBy purchasing the US company Munck Auto-

mation Technology Inc., along with its

Norwegian affiliate Munck Autech AS, Swisslog

has increased its presence and customer

proximity, particularly on the American conti-

nent. In the USA, Munck is a leading supplier

of automated logistics systems, warehouse

management software and automated guided

vehicle systems (AGVS). With their focus on

supply chain excellence and lifetime partner-

ship, the matching corporate philosophies

create a solid basis for successful cooperation

and expansion in the United States.

PolyGram: CD hits in record timePolyGram's new, automated CD production

operation is a good example of Munck's inno-

vative materials flow solutions. Automated

production enables manufacturers to bring

a hit onto the market in large quantities very

quickly even in the event of a sharp surge

in demand. This relieves PolyGram of the need

to maintain large stocks and the risk of pro-

ducing CDs that cannot be sold.

PolyGram, a customer of Swisslog’s 1998

acquisition Munck Autech Inc., manufactures

over 185 million CDs annually. In order to

remain competitive, PolyGram commissioned

Munck to automate its production and

logistics. The new warehouse and conveyor

system consists of an automated storage and

retrieval system (AS/RS) and ten laser-guided

automated guided vehicles. All processes

are automated from issuing a production

order for the finished CDs to packaging the

CDs into sleeves and adding covers.

A short conveyor belt takes the packaged CDs

to an automatic labelling machine.

The speed and reliability of the automated

production system not only leads to an increase

in production, but also offers the maximum

flexibility needed to respond quickly to unfore-

seen demand.

Strengthening position in colourantdispensing machine sectorSwisslog's joint venture “Corob” with Finnish-

based Tikkurila CPS will expand its industry

practice competence in the colourant dis-

pensing industry. The combination of Tikurrila's

experience in the field of colourant systems

and Swisslog's know-how in the field of colour-

ant dispensing machines will generate new

sales potential in the strongly growing interna-

tional colourant market. Joint services and

geographical locations will make it possible to

establish a global service network.

12…13

Managing Supply ChainInformation

Swisslog Software was established in 1998as a corporate unit with its own manage-ment. It employs over 200 logistics softwareexperts throughout the world. Swisslog Software is active in all industry segments.For customers from the distribution,pharmaceuticals, food & beverages, print & paper, and automotive industries, SwisslogSoftware experts work closely with therespective Swisslog Industry Practicespecialists.

14…15

Swisslog Software focuses on standardised

and customised solutions: on warehouse man-

agement systems, material flow systems,

software consulting and services in all project

phases. With standardised software pack-

ages, Swisslog Software configures and devel-

ops warehouse management systems, in-

cluding control and monitoring systems, for

customers, to increase the efficiency of their

material flow. All software products are of

modular design. They are configured and modi-

fied according to the customer’s individual

needs.

The core competence of Swisslog Software

derives from the employees’ combined expertise

in the software and logistics field. The broad

spectrum of reference projects and experience

creates synergies for applications in a wide

range of industries.

Swisslog Software complies with the highest

standards of quality, and is ISO 9001 certified.

Swisslog’s material flow and warehouse man-

agement systems in the pharmaceuticals and

chemicals field fulfil all requirements for vali-

dation by the U.S. Food & Drug Administration

(FDA) as conforming to GAMP (Good Automat-

ed Manufacturing Practice). Computer controlled

processes reduce error rates in order picking

that can occur with manual intervention.

In 1995, Swisslog Software became a “Com-

plementary Software Partner” of SAP. It has

developed a host interface that provides a

perfect link between SAP’s management soft-

ware and Swisslog’s warehouse management

software. Thus Swisslog is able to advise

and support SAP customers in this field, and

to service their systems.

In 1998, Swisslog Software expanded the

range of warehouse management software from

fully automated applications to simple manual

ones. The market for automated logistics sys-

tems is only a small section of the overall

market, which consists mainly of manual and

semiautomatic installations. With manual and

semiautomated logistics applications, Swiss-

log Software is opening new, important markets

for itself. The concentration on a few modules

that can be combined independently guaran-

tees a uniform concept for the entire company,

while still providing individually customised

solutions. These were supplemented in 1998 by

the newly developed software package Single

Point of Control (SPOC) for controlling and

monitoring the functions of installations; it has

a Java based user interface, and can therefore

be used from anywhere in the world, regardless

of the location of the logistics system.

Swisslog’s global presence and standardised,

modular warehouse management software,

offer internationally operating customers, cen-

trally controlled, real-time software support.

Managing Supply ChainInformation

Basic WMS software for automated warehouse areas

Highly standardized WMS for manual and semi-automated warehouses

WMS for large distribution centres with sorter systems

Single Point of Control,graphical user interface

Customer benefits– Optimal host interfaces

– Proven functionality and quality

– Detailed function descriptions

– Proven system integration based on several

thousand reference projects

– Upgrade, update and extension available

at any time

– Intensive staff training

– Electronic realtime support

Key Differentiator =

Added Values =Standard =

Global presence, high quality and standardized processes

Overall know-how of customer processes

Logistics-Consulting

ERP-Consulting and host connection

SW-Consulting

WMS-SW-Product

Swisslog Software at a glance:– Concentration of warehouse management

software competence

– Combination of software and logistics

know-how

– Global presence with over 200 specialists

– Consulting, realisation of customised

solutions and support

– ISO 9001-certified quality, validation as

conforming to GAMP

– SAP consulting on the basis of SAP partner-

ship and certification

– Standard products: Eagle, Tiger, Shark, SPOC

16…17

s hark R8

e agle R3

spoc R4

t iger R4

Single Point of Control (SPOC)In 1998, Swisslog Software extended its prod-

uct range of standard software, by adding the

monitoring, visualisation and control program

Single Point of Control (SPOC), also known

as Man Machine Interface (MMI). SPOC is con-

figured on the basis of Java. Thus users can

access their systems from anywhere in the

world via the Internet. They can connect them-

selves with their logistics systems from any

internet access point, and monitor and control

the system.

A diagram represents the entire installation.

The information on the display is updated

continuously. The status of the complete system,

including all subsystems, such as stacker

cranes, automated guided vehicles, and con-

veyors, as well as the use of input and output

modules at the transition points of the bins

are shown. All information on positions and direc-

tions of motion is transmitted. All messages

have a time stamp. For important messages, the

full text is displayed in the log.

Users can intervene in the system at any time

by means of SPOC. They can control, activate,

and stop high-bay stores, small-parts stores and

all subsystems. The system signals malfunctions

immediately, allowing for prompt intervention.

And finally, SPOC enhances Swisslog’s Customer

Support abilities to directly service and monitor

systems on line from its remote control centres.

SAP consulting and partnershipAbout 30% of all Swisslog customers are also

SAP customers. Now that the interface software

from the warehouse management system to

the SAP R/3 system has been certified, Swisslog

Software provides a host interface that con-

nects the two systems seamlessly. This ensures

comprehensive interaction of the manage-

ment and warehouse management software.

In addition, Swisslog Software is able and

authorised to service the systems of SAP cus-

tomers. With this partnership, Swisslog Soft-

ware has made an investment in the future and

thus guarantees its SAP customers compre-

hensive servicing and consulting.

The integration of SAP and Swisslog Soft-

ware systems concerns mainly the three Enter-

prise Resource Planning (ERP) modules Ware-

house Management (WM), Material Management

(MM) and Sales & Distribution (SD). The core

competence of Swisslog SAP consulting is the

configuration of the interface between Swiss-

log warehouse management systems and SAP

R/3 systems.

18…19

“Information Technology Architecture” In 1998, Swisslog continued its development

of uniform, modular warehouse management

software, and defined and standardised the

interfaces with its various own subsystems. This

substantially shortens the time for the reali-

sation of projects, and enhances a smooth work-

flow.

The information technology for a material flow

system consists of four levels: the warehouse

management system, the material flow control

system, the gateway PCs for each subsystem,

and the hardware control systems.

With its standardised integration of all four

levels, Swisslog Software controls and monitors

all the functions of a logistics system. This en-

hances the availability and utilisation rate of

Swisslog installations to meet the most deman-

ding requirements.

“Floating Batch” increases performanceThis special Swisslog software function allows

configuration of the warehouse management

system in such a way that waiting times

for missing consignments are reduced to a

minimum.

For this purpose, the controls of the automated

sorting system are designed and implemented

according to the “floating batch” principle. This

means continuous controlling of the sorting

process, without the disadvantage of batch

changeovers. This allows substantial increase in

the goods turnover of the logistics system.

Stocks and tied-up capital are reduced. Lead

times are shortened, and customers receive

their orders faster.

“Eagle”: System change at Swisscom BerneThe privatisation of the telecom service

provider Swisscom presents new challenges

to its warehouse management system (WMS).

In addition to a general increase in performance

and functionality, the WMS is to be linked to

various hosts. Thus its capacity will be increased:

more orders can be accepted, and transactions

with customers can be handled directly.

Swisslog was awarded the contract for the

comprehensive redesigning of Swisscom’s WMS.

The new system started its operations in June

1998. Since then Swisslog has been implement-

ing various extra functions.

This software system is one of the most de-

manding projects Swisslog has ever realised. It

controls the entire warehouse management,

order and dispatch processing, and the genera-

tion of transport orders. The order structure

of Swisscom Berne is very complex, ranging from

shipment of parcels to large number of pallet

orders. The WMS communicates with the

various hosts via highly specialised interface

applications. For each host, orders with ten

different order attributes can be transmitted to

the WMS. The orders are filtered in the WMS,

and processed at the corresponding order pick-

ing stations. There, both individual parcels and

complex consignments for forwarding are held

ready. The release and handling of the orders

can be configured flexibly. This results in a

considerably increased order picking output.

Completed transportation orders are transferred

by the WMS to an external computer, with

the Transport Order Manager (TOM), which

handles the forwarding.

“Shark”: Tailor-made solution through highlystandardised software system“Shark” is the basic software package for auto-

matic warehouse management. Stacker cranes,

automated guided vehicles and conveyors

are controlled with “Shark”. Based on “Shark”,

Swisslog Software specialists configure

customised solutions for efficient materials

handling and warehouse management systems.

Swisslog has installed two “Shark” software

packages at Tamro Distribution AB in Sweden.

Tamro is a Finnish wholesaler of pharmaceutical

and cosmetic products. The two largest distri-

bution centres of Tamro in Sweden, for which

Swisslog configured the “Shark” warehouse

management system, are located in Gothenburg

and Stockholm. From these two distribution

centres, about half of all the cosmetics and

pharmaceuticals marketed by Tamro are

dispatched to pharmacists, drugstores, hospi-

tals, and private homes in Sweden.

In 1998, Swisslog was awarded the contract

for comprehensive modernisation of the super-

visory systems for the two automated distri-

bution centres. Today, specific modifications of

the standard modules of “Shark” form the basis

for the warehouse management and distri-

bution. Thus Tamro operates two high-perform-

ance monitoring and control systems,

which went on-line in September 1998 in

Gothenburg and in December 1998 in Stockholm.

20…21

“Tiger”: Individualised concept and design for manual systemsFor a global company based in the Netherlands,

Swisslog performed a comprehensive data ana-

lysis of its existing material flow and order

picking system. Comprehensive concept and detail

planning for a new distribution centre followed,

and finally the company awarded Swisslog the

contract for a new, semi-automated distribution

centre. The basis for the optimised configuration

of the system and its maximum performance

is the software. “Tiger”, Swisslog's warehouse

management system (WMS) for manual and

semi-automatic applications, monitors and

controls all activities of the system. Swisslog’s

software experts have configured the WMS to

operate smoothly even under extreme seasonal

fluctuations.

“Tiger”: Tobacco Importers and ManufacturersIn 1998 Swisslog installed a warehouse man-

agement system based on “Tiger” for Tobacco

Importers and Manufacturers (TIM) in Petaling

Jaya, Malaysia, a subsidiary of Rothmans

Malaysia.

The software application “Tiger” enables the

interaction of the various, partly automated and

partly manual functions of goods handling in

TIM’s warehouse. While the warehouse and the

entire transportation management process is

regulated by means of automatic pallet

conveyors and stacker cranes from Swisslog,

order picking is done manually. The interaction

of the SAP management software with Swiss-

log’s warehouse management software is based

on Swisslog’s SAP certified host interface soft-

ware. This ensures problem-free dispatching

management via the SAP host computer.

Swisslog responded successfully to the

challenge of utilizing the existing space of

the old, manual warehouse to increase produc-

tion capacity without additional buildings.

TIM now enjoys the advantages of efficient

use of the space, smooth production processes

and perfect control over dispatch data and

quantities. This enhances Rothmans competi-

tiveness and status as the market leader in

Malaysia.

Vorwerk Elektrowerke: fit for New Year’sDay 2000 Certain components in the logistics system

of the appliance manufacturer Vorwerk Elektro-

werke were not millennium-compatible. After

comprehensive analysis, Swisslog identified the

components concerned. In close co-operation

with the customer, Swisslog defined which sys-

tem adaptations should be undertaken.

The implementation of the concept was thor-

oughly prepared by Swisslog. Through com-

prehensive simulations and tests the effective

conversion time lasted only four days. There-

fore the system downtime was limited to one

long weekend. The smooth start-up after this

busy weekend, proves how accurately the instal-

lation was converted and how precisely the

planning for the system modification was done.

22…23

Networking Expertise and Know-how-Transfer

Knowledge management was the theme of the year for Swisslog in 1998. The strategic focus was characterised by“logical motion” in material and infor-mation flow, strategic expansion and know-how-transfer. Last year Swisslog concen-trated and co-ordinated its wide experienceand expertise from previous years accord-ing to selected industry segments. TheIndustry Practice Groups (IPGs) Distribution,Pharma, Food & Beverages, Print & Paper and Automotive established by Swisslog in1998 act as platforms for gathering thesector specific knowledge from the entire

company. This information is then madeavailable to all Swisslog customers. The internal Global Information Network(GIN), a Swisslog in-house development, gives every employee worldwide access to allinformation. GIN started its operation in1999 and is used by Swisslog’s experts to communicate and exchange know-how.Thus Swisslog is now in a position to provide all its customers with solutionstailored specifically for their sector. AllSwisslog customers profit from Swisslog’sbest practices and standardised qualityprocesses.

24…25

The IPGs were established in response to the

performance requirements of different industry

sectors and individual processes within the

supply chain. The problems facing food distrib-

utors, for example, are not directly comparable

with those of manufacturers of pharmaceutical

products. Time and cost efficiency are critical

success factors in food distribution whereas

hygiene and reliability are crucial in the pharma

industry. Swisslog’s specialists with in-depth

knowledge of the material and information flow

patterns in different industrial sectors plan

and develop logistics systems geared precisely

to the requirements of particular sectors. Each

of the IPGs brings together Swisslog experts

with the right mix of knowledge and experience

required to handle the specific customer

project. The synergies created translate into

peak performance and top quality standards.

Knowledge management and know-how-transfer

guarantee that all the expertise and experi-

ence accumulated from over 6000 reference

installations is tapped to full effect. And finally

Swisslog's best practices solutions provide

the basis for a lasting partnership with cus-

tomers.

Global in-house communicationThe IPGs are organised on an inter-company,

cross-border basis and are made up of suitable

experts for particular projects. They communi-

cate via the electronic global information

network (GIN), a Swisslog in-house development

that commenced operation in 1999. GIN is

a tool that puts Swisslog’s entire know-how at

the fingertips of every employee who can re-

trieve information about all of Swisslog’s activi-

ties at any time from anywhere in the world.

This enables the specific abilities and capacities

of all Swisslog experts to be fully tapped.

Proven technologies, solutions and quality pro-

cesses are standardised and reused. Every

aspect of Swisslog's engineering is thus dedicat-

ed exclusively to providing new added value

rather than re-engineering. This improves

efficiency and reduces project risks.

Application-specific total solutions from a single

source guarantee consistent quality and pro-

fessional project management worldwide. With

the IPGs Swisslog helps its own customers –

and their customers in turn – to stay ahead of

the competition when it comes to speed, produc-

tivity, efficiency and service.

26…27

Networking Expertise and Know-how-Transfer

Network planning: Continuous improvementGetting the best out of a distribution system

depends on how efficiently the individual

modules are linked together.

Swisslog experts work for and with customers

to plan their logistics networks including all

relevant factors such as locations, sales channels,

product features and delivery times. The “Cross-

Dock”, “FlowThrough” and “FloatingBatch” con-

cepts developed and used successfully for the

first time in 1998 demonstrate how innovative

solutions in logistics networks can considerably

increase the cost efficiency of a distribution

system. For Swisslog it is immaterial whether the

network’s to be set up are regionally, nationally

or globally. Swisslog’s international presence

and its standardised software concept enable it

to plan networks of any configuration.

“Efficient consumer response” (ECR)In 1998, Swisslog developed three specific

system solutions – “CrossDock”, “Flow-

Through” and “FloatingBatch”. These processes

improve and optimise the flow of materials

from manufacturer to end-customer and thereby

cut the delivery time for goods. At the same

time they reduce goods handling, storage

volume and tied-up capital.

Such system solutions are precisely tuned to

customers’ needs and increase the manufacturer’s

production flexibility. They enhance a demand-

driven flow of materials to the distributor while

reducing inventory levels throughout the entire

supply chain. System solutions increase the

availability of products for end-consumers

offering them a wider choice of fresh goods at

lower prices.

Goods-In / OutReserve palletsPick LocationsSorter System

CDC: Central Distribution Centre

Transshipment Point /Regional Warehouse

Sales outlet

Factories

Case Study Germany: Distribution Centre replaces Factory Warehouses

Hamburg

Berlin

Frankfurt

München

Bonn

Balanced “automation level”In close co-operation with its customers Swisslog

identifies the most economic level of automation

for their logistics systems based on cost efficiency

calculations and allowing for strategic reserves

for the future.

During the concept planning phase Swisslog looks

at different automation solutions and compares

them in terms of required staffing levels, perfor-

mance reserves, investment and operating costs,

processes, ergonomic aspects, flexibility and

exchangeability. The long-term economic

efficiency of the installation is decisive for the

customer.

Benchmarking: Comparing the cost efficiency of different solutionsSwisslog offers various consulting services

including detailed calculations of investments

in buildings and equipment and the reviewing

of operating costs such as personnel costs,

interest payments, depreciation, maintenance

and energy consumption.

Swisslog is familiar with all methods of bench-

marking, for instance net present value (NPV),

internal rate of return (IRR), payback, bases its

calculations on the specific parameters and

business situation of its customers. Swisslog

has also developed special financial tools to

check alternative solutions for economic effi-

ciency and calculate the costs of an installation

over its entire lifetime.

Swisslog offers its customers comprehensive

commercial and technical solutions enabling

customers to improve their cost structure and

profit margins quickly. Through efficient cost

and investment management Swisslog helps

customers to succeed.

28…29

AUTOMATION LEVEL 1Traditional solution Pick to Pallet

AUTOMATION LEVEL 2High-Bay Warehouse Pick to Pallet

AUTOMATION LEVEL 3High-Bay Warehouse Automated replenishmentPick to Pallet

AUTOMATION LEVEL 4High-Bay Warehouse Automated replenishmentPick to Belt and Sorter

Payback

US$

80604020

Price per unit

Years

4321

Investment for equipment and building

a1alternatives a2 a3 a4

build

ing

equi

pmen

t

Mio. US$

40302010

Industry Practice Distribution The central function of distribution is the

efficient transport and temporary storage of

goods through to the end customer.

Swisslog has realised distribution systems of all

forms and sizes throughout the world.

In 1998 Swisslog concentrated its whole exper-

tise in this field within the Industry Practice

Group (IPG) Distribution. Cross-border inter-

change of experience and know-how-transfer

over the corporate global information network

provides the basis for designing and creating

the most efficient distribution systems

for Swisslog’s customers anywhere in the

world. IPG Distribution has customers in the re-

tailing, mail order and wholesale trade. No

matter what kind of problem, Swisslog experts

can provide the best solution whether it is

distributing packets or fresh products, order-

based or demand-driven distribution or central

or regional organisation. They work ceaselessly

to improve the customers logistics networks

and help them to achieve supply chain excel-

lence.

The planning process is broken down into

stages, starting with the detailed analysis

through concept planning, detail planning and

the tendering process, through the implemen-

tation of the distribution system. This makes it

possible to identify the most economical

level of automation that best suits customers’

specific needs. The prime considerations are

economic efficiency and strategic reserves for

forward planning by the customer.

Standardised warehouse and order picking

modules are put together like pieces of a jigsaw

puzzle into a configuration matching the cus-

tomer’s specific requirements. Customers can

rely on proven applications while benefiting from

the advantages of tailored solutions.

Swisslog has an integrated software organi-

sation so it can offer its customers a warehouse

management system (WMS) based on an

integrated IT concept that is matched to the

requirements of the particular storage and

transport system. The WMS controls and man-

ages all processes at the distribution centre

allowing maximum utilisation and continuous

monitoring with a simple display system.

Obtaining a complete distribution and

warehouse management system from a single

source benefits customers and not only by

minimizing the costs of design and installation.

Swisslog also guarantees that processes are

smoothly co-ordinated between their experts thus

accelerating the time for project realisation.

Single source supply serves to improve the

customers cost efficiency and competitiveness.

“CrossDock” and “FlowThrough”: Bestindustry practice boosts throughputLarge stocks in warehouses tie up capital, cause

extra outlays for handling and increase the

costs of storage and warehouse management.

These expenses can be cut substantially by a

well planned production and distribution process

tailored precisely to current requirements.

In 1998 Swisslog introduced a control and man-

agement system where goods are loaded

directly from dock to dock for further transport

without previous warehousing. Optimum use

is made of available space, delivery times are

cut and performance increased. Manufacturers

and customers profit from lower costs and

improved service while maintaining the same

quality of goods.

30…31

“Modular Solutions”: Customised solutionsbased on a modular conceptSwisslog has developed storage and order pick-

ing modules that can be combined to create

a variety of different system configurations. The

resulting customised solutions are based on

the advantages of proven concepts.

In close co-operation with the customer Swiss-

log experts identify the specific requirements

of the storage and distribution systems through

careful analysis. Consequently the complete

system is assembled from the appropriate hard-

ware and software modules.

A pioneering system boosts throughput ofinternational consignments: Automatedcarton store for Otto-Versand in Germany60 million items or 20 million consignments

leave the Haldersleben Centre of the Ger-

man mail order company Otto-Versand. This

translates into a daily output of 80,000

consignments. The centre comprises a high-

bay warehouse 150 m long, 86 m wide and 27 m

high with 30 aisles and approximately 600,000

storage positions for cartons. In order to ensure

that the picking system is replenished with

the right goods at the right time Swisslog

developed a system technology specifically

designed to increase throughput and improve

the process structure. This enables cartons to

be transported and stored without additional

loading equipment. The high-bay warehouse is

equipped with specially designed stacker cranes

that can store or retrieve 15 cartons simulta-

neously in a double cycle. The stacker cranes

achieve an hourly capacity of 115 double cycles.

Repositioners allow the machines to be moved

from one aisle to the next.

Swisslog's long-term partnership with Otto-Ver-

sand and its comprehensive service and sup-

port in all matters relating to warehouse result-

ed in other projects. In 1998, Swisslog was

commissioned to act as general contractor for

the extension of the dispatch centre in Halders-

leben. The new warehouse will double the ex-

isting capacity of 600,000 storage positions and

create the largest carton store in the world

with 1.2 million positions.

32…33

Industry Practice AutomotiveThe automotive industry has reorganised sites

and its production methods in recent years,

posing new challenges for manufacturers of

logistics systems.

Today car manufacturers operate plants world-

wide and expect their logistics partners to

be represented internationally. Swisslog is to be

found everywhere its customers operate. The

cross-border co-operation between Swisslog spe-

cialists within the Automotive IPG established

in 1998 enables customers to rely on Swiss-

log's consistently high standards worldwide.

The production process is increasingly being re-

located from car plants to the factories of

individual component suppliers. Working

processes, storage organisation and transport

operations are changing accordingly. At the

same time the key cost areas in the automotive

industry are being shifted. Today the bulk of the

production costs incurred by car manufacturers

today are mainly on expenditure for final

assembly, and secondly for modules and systems

such as complete cockpit modules or brake

systems that are supplied preassembled.

The trend towards manufacturing special

models with shorter production runs per model

calls for flexible assembly solutions with short

investment payback periods. Swisslog’s modular

systems meet these requirements.

Shorter development cycles and the continuous

downsizing of planning departments at car

plants open up new opportunities for material

flow specialists. Swisslog is focusing on the

growing requirements in this area and on the

trend towards outsourcing. Simulation tech-

niques and close co-operation with the

customer at an early stage of planning result

in new ideas providing the basis for building

systems with higher performance.

As new models follow one another at shorter

intervals, assembly lines must be capable of

being adapted quickly, cheaply and effectively.

From the very beginning Swisslog experts handle

the planning, design and implementation of an

installation and are subsequently responsible for

service and modernisation. They know and un-

derstand their customers’ systems and can im-

plement the optimum solution for every model.

Sophisticated transport system for JaguarJaguar manufactures the vehicle bodies for

its four models at the Castle Bromwich plant in

Birmingham, UK. Final assembly of its new

“S” type is also carried out there. The other three

models are transported to the plant in Coventry,

UK, for final assembly. An integrated warehouse

has been constructed downstream of the paint

shop with room for 363 car bodies.

The bodies are transferred to the warehouse

from the paint shop and are stored. The purpose

of this holding store is to retrieve the bodies

in the most efficient order for final assembly

according to type and colour: Electronically

controlled stacker cranes retrieve the bodies

from adjacent aisles according to the

customer’s requirement. What is so innovative

about this project is the absence of skids for

transporting the bodies. Instead a special carrier

apparatus is attached to each body by which it

can be picked by the stacker crane. The bodies

are then moved via floor conveyors either to the

loading docks for transport by trailer to

Coventry or to the final assembly line at the

local plant.

34…35

Industry Practice Food & Beverages The requirements of the food and beverage indus-

try change with the habits and standards of

modern life. This applies equally to the production

and distribution of goods. The distribution of

fresh food is particularly challenging given the

need to deliver the right product at the right

time, at the right place and with the right quality.

The problem is compounded by various strict

regulations relating to hygiene, sell-by dates and

composition of products.

Swisslog uses its expertise to work selectively

in this market. The Industry Practice Group (IPG)

Food & Beverages established in 1998 coordinates

Swisslog’s entire know-how in this field. In the

food & beverages segment production processes

have long been automated and optimised to

such an extent that there is little potential left for

further cost savings. In the handling and

distribution processes on the other hand there are

still many opportunities for cutting costs. There is

room for considerable improvement in the

efficiency of distribution in the food & beverage

segment through the use of software, robotics

and conveyor technology. The object is to achieve

perfect distribution management, a continuous

flow of materials and maximum availability

while still increasing quality and lowering

logistics costs. Depending on the current market

opportunities the IPG Food & Beverages con-

centrates on those segments where the highest

cost savings can be achieved in relation to total

costs by improving their material handling and

distribution system.

The distribution of fresh food, for instance

bakery goods, requires a distribution system as a

platform for bringing individually assembled

delivery orders to the points of sale quickly and

reliably without intermediate storage in a

distribution warehouse. End consumers want to

be able to buy fresh rolls of the quality they

have come to expect, early in the day and at an

outlet as close as possible to them. Fast, smooth

order picking and delivery of the goods is re-

quired. Swisslog’s material flow system enables

goods to be distributed to the point of sale

without intermediate storage. This not only

saves time but also storage and administration

costs, and calls for perfectly coordinated pro-

cedures in the goods and information flow.

Swisslog’s customers are not the only beneficia-

ries. Their customers also profit from selling

their goods fresh and early and ultimately end-

consumers obtain their food fresher and cheaper.

Walkers Snack FoodsWalkers Snack Foods has been producing various

snacks of various kinds since 1918. Today,

Walkers’ complete product range covers over 250

types of snack with sales of 2.3 billion packaged

snack portions a year. In order to increase produc-

tion in response to the growing popularity of its

goods Walkers centralised and expanded its

production facility in Theale near Reading in the

UK. Swisslog was general contractor for this

project and in 1998 handed over the extended,

centralised warehouse to Walkers. Walkers

is a long-standing customer of Swisslog. In 1992

Swisslog acted as general contractor for the

construction of the original distribution centre

consisting of a high-bay warehouse with 8120

pallet positions and integrated order picking and

dispatch system. The “Module Store X” warehouse

management system, the predecessor of the

“Eagle” software package, was used to monitor

and control this centre. Over the following years

Swisslog expanded this system often.

The expansion completed in 1998 comprises a

new production hall, an automated store for raw

materials and finished products from the pro-

duction area and an order picking and distribu-

tion centre linked to the existing high-bay

warehouse via a Swisslog monorail system. Swiss-

log was responsible for all functions from de-

velopment of the concept through to commission-

ing. Swisslog know-how combined with the

efficient teamwork of its experts resulted in a

comprehensive material flow and warehouse

management system. Delivering Walkers all the

required benefits – large storage capacity,

control and overview of stocks, low damage rates

to products due to automated material flow,

increased production rates with 24-hour opera-

tion and high throughput capacity.

36…37

Industry Practice Pharma In the pharmaceutical industry reliability, safety

and hygiene are the priorities in production

and logistics. Knowledge of validation and good

manufacturing practice (GMP) are vital in the

pharmaceutical industry and are thus the core

competences of Swisslog’s Industry Practice

Group (IPG) Pharma. To operate successfully

in this sector it is essential to have a thorough

knowledge of the language and technical

terminology of the pharmaceutical industry and

to translate specific requirements into practical

solutions.

Good Manufacturing Practice (GMP)Clean room requirements, white zones, air-fil-

tered rooms and other hygiene regulations

dictate production and logistics in the pharma-

ceutical industry. Swisslog’s IPG Pharma

provides solutions that meet these strict hygiene

requirements. The entire transport and conveyor

system in a pharmaceutical plant is designed

to clearly defined standards. Containers and pal-

lets consist of high-grade materials that can be

easily cleaned and all constructions are designed

without corners to avoid contamination.

ValidationAny manufacturer or distributor in the pharma-

ceutical industry needs a validation certificate

to sell its products. Validation requires verifying

at any time when, how, where, with what, by

whom and under what circumstances a product

has been manufactured, packed and distributed.

The validation regulations are set by the American

Food & Drug Administration (FDA) and have

gained recognition as the international standard.

Independent experts verify and certify individual

plants for validation.

Swisslog’s IPG Pharma is well acquainted with

the problems and demands of validation. Proven

subsystems are reused or modified to specific

requirements. Swisslog’s experts continuously

develop new solutions and update their know-how

in all areas of pharmaceutical production and

logistics. Many years of experience and the

security of certified modules guarantee Swiss-

log’s pharmaceutical customers meet all

validation requirements.

Swisslog's Pharma IPG implements suitable

production, packaging and storage modules. By

considering validation requirements from the very

beginning customers save time and costs that

would be incurred by an expensive subsequent

validation process.

Precision and security: High-bay warehousewith automatic refrigeration line for thepharmaceutical company Cilag in Thayngen,SwitzerlandThe new distribution centre of the pharmaceu-

tical company Cilag, a wholly-owned subsidiary

of Johnson & Johnson, in Thayngen, Switzer-

land that went onstream in September 1998

User Requirements Specific.

Functional Specification

Design Specification

is the hub for the worldwide distribution of

drugs in solid, semi-solid, liquid and sterile form

and of active chemical substances for further

processing.

Swisslog acted as general contractor with

complete responsibility for the design and im-

plementation of this highly specialised logis-

tics centre. Its Customer Support will continue

to support Cilag in the future in all matters

relating to storage and conveying technology,

control and information processing.

The high-bay warehouse (HBW) measuring

80 m long, 25 m wide and 20 m high has a total

of five automated aisles and also features

a special refrigeration line. Thermoboxes main-

tained at the correct temperature with freez-

er elements ensure refrigerated products reach

their destination in perfect condition.

The entire material flow from storage of in-

coming goods, picking of ordered articles, prepa-

ration for dispatch and loading onto delivery

vehicles is displayed on a screen on the ware-

house management system and confirmed on

the touch screen. Labels are printed directly at

the picking point prior to retrieval and attached

to the goods to prevent errors. The reliability

delivered by its innovative fully automated design

and information technology, combined with

error-free order picking and optimised material

flow guarantees high availability and cost effi-

ciency.

38…39

Related to Performance Qualification

Related to Operational Qualification

Related to Installation Qualification

System Build & Internal Tests

Colour and paint industryThe joint venture between Tikkurila CPS, one

of the world’s leading companies in the field of

colour processing systems, and Swisslog under

the name Corob, have pooled their know-how in

the field of colour processing systems and col-

ourant dispensing machines.

Umberto Marazzi, who was Chairman of Italian

Corob S.p.A. assumed the management of this

newly founded joint venture. Corob S.p.A.

has been a member of the Tikkurila CPS Group

since 1997.

Corob manufactures colourant dispensing ma-

chines in Italy, Finland, North and South America

and in India and has sales offices and service

centres in the UK, Australia and Hong Kong. Its

machines are used in industry as well as by

distributors and retailers. Corob employs a total

workforce of 310.

Complex system for colour varietyA few base paints, pigments and a tinting

machine are all that is needed to produce paint

of any colour in a matter of minutes for small

quantities or a few hours for larger volumes.

A tinting or colour processing system (CPS) com-

prises the base paint, the pigments, a mixer,

an automatic distributor, the PC software, colour

cards and the display material. It can be used

to prepare water- and solvent-based paints to

order. Gone are the days of huge paint stores or

long waiting times for customers wanting a

special colour.

Companies supplying car or furniture manufac-

turers, for example, mix exactly the right colour

in the required quantity within a matter of

hours, thereby cutting delivery times for end-

customers. Retailers can offer an almost

unlimited range of colours while reducing their

storage requirements. With a Corob colourant

dispensing machine, which takes up just two or

three square metres space, they can sell

their customers any tone or shade of colour at

any time.

The tinting system combines the advantages

of fast availability and almost unlimited variety

of different colours with small space require-

ments. It also reduces the amount of cleaning

needed with environmentally harmful solvents

because this demand-based production and

filling of paint produces less residual material and

only a minimum number of tools are required.

Its three main advantages can thus be sum-

marised as speed, flexibility and cost reduction.

Consequently there is a growing demand for

tinting systems throughout the world. As a lead-

ing manufacturer of colourant dispensing

machines Corob will continue to invest in this

technology and will be represented and sup-

ported by Swisslog’s global customer support

and service organisation.

Colours to suit every taste: great potential in the paint industryThe invention of an automatic colourant dis-

pensing system in the 1980s offered revolution-

ary opportunities for the paint industry

and opened up a global market.

With its unlimited possibilities for paint produc-

tion the colourant dispensing machine suits

the tastes of many different cultures and respond

quickly to trends and fashions.

As a result, it is used all over the world not

only by industrial paint manufacturers but also

to an increasing extent in the retail trade.

40…41

42…43

own remote control centres, known as Ex-pert Help Desks, provide a twenty-four-hourbackup service ensuring extremely shortresponse times for correcting disturbances.Local service technicians help customers with any technical problems that cannot bedealt with on-line. CS assures the availab-ility of systems with specific preventive mea-sures and ongoing maintenance. Retrofittingand modernisation measures increase theefficiency and service life of existing installa-tions. Selective modernisation and softwareupgrades increase the capacity of installationsand systems, helping to give customers acompetitive edge. All services provided byCustomer Support are based on close co-operation founded on mutual trust betweenthe customers and employees of SwisslogCustomer Support, which is represented in 19 countries in Europe, Asia, Australia andthe Americas.

Lifetime-Partnership

Customer Support (CS) is Swisslog’s group-wide service platform. Customer Supportworks together with the software expertsand specialists in the Industry Practice Groupsto ensure that customers’ systems operatereliably at all times over their entire life cycle.Customer Support offers all Swisslog cus-tomers comprehensive service round the clock.Support specialists working at Swisslog’s

Extension of the 24-hour remote control serviceCustomer Support is developing its Expert

Help Desk system and at the same time further

extending its 24-hour remote control service.

Support specialists at central control stations

monitor and control several installations of a

customer on-line simultaneously. There are also

experts on hand locally to deal with problems and

provide maintenance services that cannot be

handled remotely.

Software support, spare parts managementand trainingCustomer Support also supplies complete

software support, undertakes necessary repairs

and manages spare parts on behalf of its cus-

tomers. It also provides servicing and mainte-

nance training for customers’ employees and

develops solutions for all questions in con-

nection with the millennium date change. Com-

puter simulations are carried out by Customer

Support to test customers’ hardware and software

and provide accurate forecasts for individual

scenarios. In this way it is possible to configure

systems so that their performance and exten-

sion options can be adapted flexibly to market

developments and company growth.

Customer support is a lifetime partnership.

Some 500 service specialists worldwide advise

customers on all questions relating to logis-

tics automation and materials flow. Customer

Support looks after systems regardless of

whether they were originally installed by Swiss-

log or another supplier and guarantees maxi-

mum availability and reliability to raise efficien-

cy and profitability.

Proactive customer careCustomer support is proactive customer care.

Fault prevention and maintenance of logistics

systems are the foundation of a range of ser-

vices that even extends to handling the entire

technical side of a customer’s operations on

site to satisfy even the highest standards of

availability and smooth, reliable operation.

3-level support systemCustomer Support’s 3-level hierarchy guar-

antees fast troubleshooting on all installations.

About 40% of all disturbances can be cor-

rected through the Expert Help Desk. Customers

can contact the specialist on duty via Inter-

net or by telephone at any time day or night.

This specialist has access to all technical docu-

ments. About 58% of all fault reports are

forwarded to the local technical support which

repairs the faulty system directly. In just 2%

of all cases the report is sent back to the devel-

opment department or manufacturer of the

subsystems affected for the problem to be dealt

with there. Fast response times, accurate fault

analysis and immediate intervention help ensure

that the system’s availability and productivity

are not impaired by operating disturbances.

44…45

Modernisation, upgrading and expansionCustomer Support knows the requirements

of its customers and is familiar with their instal-

lations. Customer Support plans and imple-

ments in close co-operation with its customers

selective retrofitting and modernisation mea-

sures. This increases the cost efficiency of the

installations and extends their operational

life. Customer Support advises its customers

on the economic viability of extending installa-

tions. This leads to new orders ranging from

additions and extensions to complete modern-

isation of existing installations.

Lifetime-Partnership

Central remote control for three Ford plantsFord enjoys the benefits of centrally controlled

software support from Swisslog. Swisslog

Customer Support provides software support

for the Ford plants in Cologne, Genk and

Valencia via a central Expert Help Desk from

its remote control centre in Dortmund. Swisslog

experts working there monitor the three

Ford production facilities on-line round the

clock. Concentrating this monitoring function

at a single location saves Ford substantial

costs and cuts response time in the case of a

disturbance.

Local customer support is on hand at each of

the three plants in case on-site intervention is

necessary. Swisslog Customer Support is geared

precisely to the requirements of the In Line

Vehicle Sequence (ILVS) temporary body store

that it installed. The purpose of this store

is to hold vehicle bodies temporarily for up to

24 hours before they are transferred to final

assembly. This means that several bodies in

succession can be sprayed the same colour with-

out necessarily being assembled at the same

time. The order situation dictates production

with a throughput of one finished vehicle every

35 seconds. Ford’s success depends on the

smooth flow of materials and fast correction

of disturbances. Swisslog’s Customer Support

system is an integral part of the overall produc-

tion process at the three Ford plants.

SKF Italia: Modernisation means optimisationSwisslog Customer Support’s proven perfor-

mance, experienced contractual partners and

realistic costing within the specified budget

were key reasons why the SKF Italia bearing fac-

tory commissioned Swisslog to carry out a

comprehensive modernisation of its logistics

system.

Working under conditions that did not allow

any interruption of the production process,

Swisslog overhauled all the electrical equipment

and optimised the control system of the in-

stallation through selective individual measures.

The result has been a comprehensive and

noticeable improvement in all functions, in par-

ticular, a substantial increase in throughput

capacity and significantly better reliability. Work-

ing to a tight schedule Swisslog completed the

project on time. Swisslog’s Customer Support

still maintains a presence at SKF Italia, where

it is responsible for the maintenance and

technical support of the installation.

Customised modernisation of a logistics systemThe growing demand for confectionery and new

standards for the production and distribution

of foodstuffs call for increasingly sophisticated

logistics systems. To address this development,

a well-known confectionery manufacturer in

Germany carried out a full-scale renovation of

its logistics system since the supply of spare

parts, maintenance, support and data security

could no longer be guaranteed in the long term.

Swisslog Customer Support carried out an in-

depth analysis and presented a detailed plan that

gained the approval of the company’s man-

agement. In December 1998 Customer Support

took on the task of modernising the system

completely.

46…47

The solution adopted is one of the most mod-

ern of its kind: All operations in the entire

installation are shown on a display and are mo-

nitored and controlled from a central platform.

At the same time the central administration

is able to manipulate the system directly. This

guarantees first that data operations can be

performed simply and reliably and secondly that

malfunctions can be traced and corrected more

quickly. The central control system of the instal-

lation supplies statistical evaluations on the

availability of all components allowing the entire

system to be utilised at maximum capacity.

In this challenging project the entire work,

including integrating the new system elements

into the existing installation, was performed

without interfering with day-to-day operations.

The customer was very satisfied and placed

another order with Swisslog Customer Support

for a pre-cooling system for finished goods.

Investor Relations

48…49

Dividend policyThe Board of Directors will propose to the

Annual General Meeting of 19 May, 1999 that

a dividend of CHF 2.50 per registered share

be paid out. Swisslog pursues an income-based

distribution policy.

Investment policyThe Swisslog Group aims to expand its pres-

ence on the world's logistics systems markets.

Customer proximity, a comprehensive range

of services and a broad geographic base are cru-

cial to success.

Swisslog’s affirmed goal is to finance its growth

through internally generated funds.

Capital structureAs of 31 December, 1998, 2,752,000 registered

shares at CHF 10 nominal were outstanding and

entered in the Commercial Register. The group

holds neither authorised nor conditional capital.

DerivativesAs of 31 December, 1998 there were no op-

tions in circulation issued by Swisslog or third

parties on the company's registered shares.

Registration limitUpon introduction of the Federal Act on Stock

Exchanges and Securities Trading (“Stock

Exchange Act”) on 1 January, 1998, the per-

centage limit (transfer restriction) imposed on

the entry of registered shares in the com-

pany's share register as stipulated in Art. 6

para. 2 of the Articles of Association was auto-

matically rescinded.

The Articles of Association of Swisslog Holding

AG no longer contain a percentage ceiling on

the registration of shares. The Articles of Asso-

ciation have merely retained a nominee rul-

ing (Art. 6 para. 4) which stipulates that no more

than 5 percent of the registered share capital

may be entered in the share register under the

name of persons holding shares on a fiduciary

basis for third parties not known to the company.

The object of this ruling is to prevent anyone

from secretly securing control over Swisslog

Holding AG.

Shareholders' duty to disclose holdingsThe shareholders of Swisslog Holding AG are

subject to the disclosure requirements of

the Stock Exchange Act. Under Art. 20 of the

Stock Exchange Act, any shareholder who

either directly, indirectly or by joint arrangement

with third parties acquires or sells shares of

Swisslog Holding AG and thereby attains,

exceeds or falls below a threshold of 5, 10, 20,

331⁄3, 50 or 662⁄3 percent of the voting rights

(whether enforceable or not) shall be required

to notify Swisslog Holding AG and the

Disclosure Office of the Swiss Exchange.

Address: Swiss Exchange, Disclosure Office,

PO Box, CH-8021 Zurich.

Phone: +41 1 229 29 16, Fax: +41 1 229 29 35

Under Art. 21 of the Stock Exchange Act, the

company is for its part obliged to publish any

such information that it receives.

Shareholders who as of 1 January, 1998 had a

holding of at least 5 percent of the voting

rights of Swisslog Holding AG are granted a

period of 3 years within which to make

their disclosure, provided they do not increase

this holding to the next highest threshold

during this time.

Investor Relations50…51

Decision not to include opting-out andopting-up clausesSwisslog Holding AG has consciously decided

against writing into its Articles of Association

either an opting-out or an opting-up clause

which would waive or restrict the obligation im-

posed on shareholders to make an offer as

stipulated under Art. 32 of the Stock Exchange

Act effective 1 January 1998. Under Art. 32

of the Stock Exchange Act, a shareholder who

either directly, indirectly or by joint arrange-

ment with third parties acquires shares of Swiss-

log Holding AG and thereby exceeds the

threshold of 331⁄3 percent of the voting rights

(whether enforceable or not) is required to sub-

mit a purchase or exchange offer to all share-

holders of Swisslog Holding AG. Moreover, the

minimum price stipulations defined in the Stock

Exchange Act will also apply to any such offer.

Own shares and management participationplanAs of 31 December 1998, Swisslog held a

total of 15,500 registered shares of Swisslog

Holding AG with a book value of CHF 1.9

million. These shares were acquired under

a stock option plan for the group's executive

personnel and as remuneration for the Board of

Directors. These registered shares are carried

in the books of Swisslog Management AG at an

average price of CHF 122.

Remuneration for the Board of DirectorsThe remuneration paid to the Board of

Directors takes the form of an annual

allocation of 5,250 registered shares of

Swisslog Holding AG.

Shareholder structureApproximately 1,500 registered shareholders

are entered in the share register. The shares are

held by a large number of individual

shareholders. The principal shareholders are:

– Chase Nominees Ltd, London

– B.V.B.A Group 2000 Participatie, Antwerp

– Henderson Investors

ListingThe registered shares of Swisslog Holding AG

are traded on the main segment of the Swiss

Exchange.

Securities ID numbers, ticker symbolsSecurities ID number: 675 227

ISIN: CH0006752270

Telekurs, Dow Jones: SLOG

Reuters: SUSZn

Key dates for the investor's diaryPress conference

and analysts' meeting: 20 April, 1999

Annual General Meeting: 19 May, 1999

Half-year report: 24 August, 1999

ContactJuhani Anttila

Delegate of the Board of Directors

Swisslog Holding AG

Webereiweg 3

CH-5033 Buchs/Aarau

Switzerland

Phone (direct): +41 62 837 95 12

Fax: +41 62 837 95 56

e-mail: swisslog@swisslog.com

Swisslog at a glance: an overview for investors

Key data per registered share (equivalent of registered shares at CHF 10 nominal)1998 1997 1996 1995 1994

Earnings before interest, tax, depreciation and amortisation (EBITDA) CHF 13.4 10.4 4.6 0.3 3.2

Earnings before interest, tax and amortisation of goodwill (EBITA) CHF 10.4 8.0 2.6 -1.3 1.5

Earnings before interest and taxes (EBIT) CHF 9.6 7.7 2.6 -1.3 1.5

Net income/registered share (EPS IAS 33) CHF 8.0 4.8 0.8 -1.4 3.7

Consolidated shareholders' equity per registered share (net asset value) CHF 65.5 60.1 62.5 74.1 96.8

The registered shares were split 1:5 in 1997.

Dividends 1998 1997 1996 1995 1994

Consolidated net income CHFm 22.1 13.2 2.2 -3.9 10.2

Dividend/capital repayment CHFm 6.9 5.5 18.7 8.8 8.8

Dividend payout ratio % 31% 42% – – 86%

Dividend/registered share 1) CHF 2.502) 2.00 3.20

Capital repayment/registered share 1) CHF 6.80 3.20

1) Equivalent of registered shares at CHF 10 nominal.2) Dividend for the year under review in accordance with the proposal of the

Board of Directors to the Annual General Meeting of 19 May, 1999.

52…53

Swisslog: the market view

For comparison purposes, prices for the period 1994 to 1996 in the above chart were adjusted to reflect the 1:5 share spilt.

Share price development of registered shares, monthly averages

1998 1997 1996 1995 1994

Price of registered shares 1) High CHF 186 125 83 72 91

Low CHF 95 86 61 54 60

Gross return on registered shares High % 1 2 NA NA 4

Low % 3 2 NA NA 5

Market capitalisation (31.12.) CHFm 358 294 203 176 168

Market capitalisation as % of shareholders' equity % 198 177 118 86 63

Price earnings ratio (P/E ratio) (as of 31.12.) Factor 16.2 22.3 92.3 NA 16.5

1) Equivalent of registered shares at CHF 10 nominal.

170

160

150

140

130

120

110

100

90

80

70

60

IV1993 1999III I II III IV I II III IV I II III IV I II III IV I II III IV I

1994 1995 1996 1997 1998

Organisation

Board of Directors of Swisslog Holding AGand Swisslog Management AGTruls D. Berg Chairman up to 1999

Konrad Peter Vice-Chairman up to 1999

Juhani Anttila Delegate up to 1999

René Garo Member up to 2001

Hans Hulsbergen Member up to 1999

Guido Patroncini Member up to 1999

AuditorsSTG-Coopers & Lybrand AG, Basel

Group AuditorsSTG-Coopers & Lybrand AG, Basel

Management CommitteeJuhani Anttila President and CEO

Operations

Andreas Münch Logistics Systems Region 1

Ulf Jansson Logistics Systems Region 2

Charles Teissonnière Logistics Systems Region 3

Göran Fredriksson Logistics Products

Uwe Eckert Overhead Conveyors

Kari Ollila Robotics

Uwe Schöning Unit Load Conveyors

Urs Birrer Software

Corporate Office

Pekka Pylkäs Chief Financial Officer

Wolfgang Maier Customer Support

Martin Strobel Corporate Services

Björn Berg Corporate Marketing

54…55

Swisslog Holding AGWebereiweg 3

CH-5033 Buchs /Aarau

Phone +41 62 837 95 37

Fax +41 62 837 95 10

Swisslog Management AGWebereiweg 3

CH-5033 Buchs /Aarau

Phone +41 62 837 95 37

Fax +41 62 837 95 10

Europe

BelgiumDigitron Benelux N.V.Kernenergiestraat 47-49

B-2610 Wilrijk

Phone +32 3 830 38 00

Fax +32 3 828 89 26

GermanyCimcorp GmbHMonreposstrasse 53

D-71634 Ludwigsburg

Phone +49 7141 38 360

Fax +49 7141 38 36 10

Digitron GmbHMonreposstrasse 53

D-71634 Ludwigsburg

Phone +49 7141 22 600

Fax +49 7141 22 6055

Digitron Materialfluss-System GmbHZiegelhüttenweg 4

D-65232 Taunusstein-Neuhof

Phone +49 6128 97 600

Fax +49 6128 97 6044

Digitron Service GmbHMartin-Schmeisser-Weg 6

D-44227 Dortmund

Phone +49 231 758 9500

Fax +49 231 758 9512

Louis Schierholz GmbHArsterdamm 110

D-28277 Bremen

Phone +49 421 8406 0

Fax +49 421 8406 202

Transnorm System GmbHFörster Strasse 2

D-31177 Harsum

Phone +49 5127 402 0

Fax +49 5127 402 102

Transnorm System Holding GmbHFörster Strasse 2

D-31177 Harsum

Phone +49 5127 402 0

Fax +49 5127 440 0

DenmarkDigitron ABFriis Hansens Vej 2

DK-7100 Vejle

Phone +45 75 85 81 33

Fax +45 75 85 95 60

FinlandCimcorp OySammontie 5

FIN-28400 Ulvila

Phone +358 2 6775 111

Fax +358 2 6775 200

Corob OySammontie 5

FIN-28400 Ulvila

Phone +358 2 6777 700

Fax +358 2 6777 701

FranceDigitron Benelux N.V.14, Rue des Cinq Perches

F-77645 Chellex-CEDEX

Phone +33 1 64 21 44 33

Fax +33 1 64 21 09 70

Digitron-Translift S.A.151, Avenue Aristide-Briand

BP 2275

F-68068 Mulhouse-Cedex

Phone +33 3 89 32 65 65

Fax +33 3 89 59 75 51

United KingdomCorob CPS Service System Ltd.Rotherfield House, 7 Fairmile

Henley on Thames

GB-Oxon RG9 2JR

Phone +44 1491 411 144

Fax +44 1491 411 979

Digitron Ltd.Units 2 /3, Regents Court

Far Moor Lane

GB-Redditch B98 OSD, Worcs.

Phone +44 1527 517 333

Fax +44 1527 517 344

Digitron Ltd.706 Stirling Road, Trading Estate

GB-Slough, SL1 4SY, Berkshire

Phone +44 1753 52 85 45

Fax +44 1753 57 04 07

Digitron-Translift Ltd.Hallcroft Road

GB-Retford DN22 7PT, Notts.

Phone +44 1777 707 511

Fax +44 1777 860 778

Transnorm System Ltd.Ashchurch Industrial Estate

GB-Tewkesbury GL20 8TD

Gloucestershire

Phone +44 1684 291 100

Fax +44 1684 291 550

ItalyCorob S.p.a.Via Agricoltura, 3

I-41038 San Felice s.P. /MO

Phone +39 0535 66 30

Fax +39 0535 66 36 00

Digitron Italia S.r.l.Via Columella 40

I-20128 Milano

Phone +39 02 2707 111

Fax +39 02 2707 1150

Digitron-Translift S.r.l.Via Rondo Bernardo, 28

I-10092 Borgaretto / TO

Phone +39 011 358 08 18

Fax +39 011 358 15 47

NetherlandsDigitron Benelux B.V.Landzichtweg 66

NL-4105 DP Culemborg

Phone +31 345 53 11 88

Fax +31 345 53 07 36

Transnorm System B.V.Energieweg 10

NL-3641 RT Mijdrecht

Phone +31 297 285 121

Fax +31 297 286 221

NorwayDigitron ASNedre Rommen 5

N-0988 Oslo

Phone +47 22 78 95 00

Fax +47 22 78 95 10

Munck Autech ASPost Box 3133 Årstad

N-5829 Bergen

Phone +47 55 59 53 00

Fax +47 55 59 53 01

SwedenAccalon ABBox 21

S-590 10 Boxholm

Phone +46 142 557 00

Fax +46 142 557 77

Corob Scandinavia ABDatavägen 6

S-436 32 Askim

Phone +46 31 748 1850

Fax +46 31 287 172

Digitron ABBrodalsvägen 13

S-433 38 Partille

Phone +46 31 336 60 00

Fax +46 31 336 08 85

Schierholz Svenska ABBrodalsvägen 13

S-433 38 Partille

Phone +46 31 336 61 70

Fax +46 31 336 60 12

SwitzerlandDigitron-OWL AG Erlenstrasse 32

CH-2555 Brügg/Biel

Phone +41 32 374 22 00

Fax +41 32 374 24 99

Digitron-OWL AG Webereiweg 3

CH-5033 Buchs /Aarau

Phone +41 62 837 41 41

Fax +41 62 837 41 21

Digitron-OWL Service AG Erlenstrasse 32

CH-2555 Brügg/Biel

Phone +41 32 374 22 00

Fax +41 32 374 24 99

Digitron-OWL Service AG Webereiweg 3

CH-5033 Buchs /Aarau

Phone +41 62 837 41 41

Fax +41 62 837 41 35

Digitron-Translift AGRainacherstrasse 47

CH-6010 Kriens / LU

Phone +41 41 329 88 00

Fax +41 41 329 88 99

Swisslog Software AGBahnhofstrasse 96

CH-5001 Aarau

Phone +41 62 834 15 00

Fax +41 62 834 17 95

Czech RepublicSchierholz Dopravni Technikas.r.o.Repna 20

CZ-321 00 Pilsen-Litice

Phone +420 19 78 28 272

Fax +420 19 78 28 272

Americas

UruguayCorob S.A. Color Engineering Sud America

Cardal 3092

C.P. 11600 RDU-Montevideo

Phone +598 2 487 0732

Fax +598 2 487 0736

USACorob North America Inc.13315-G Carowinds Boulevard

Charlotte

NC 28273 USA

Phone +1 704 588 8408

Fax +1 704 588 8471

Munck Automation Technology, Inc.161 Enterprise Drive

Newport News VI 23603 USA

Phone +1 757 887 80 80

Fax +1 757 887 55 88

Transnorm System Inc.1906 South Great Southwest Parkway

Grand Prairie, TX 75051 USA

Phone +1 972 606 0303

Fax +1 972 606 0768

Australia

AustraliaCorob Ltd.Branch office

AUS-Melbourne

Phone +61 3 93317897

Fax +61 3 93317930

Digitron Logistics Pty. Ltd.30, Cowper Street, Level 1

AUS-Parramatta NSW 2150

Phone +61 2 9895 1000

Fax +61 2 9895 1095

Asia

ChinaCorob Ltd.Unit B, 7 /F

Hang Tung Resources Center

18, A Kung Ngam Village Rd.

Shau Kai Wan, Hong Kong

Phone +852 2 904 6000

Fax +852 2 904 6104

IndiaCorob India Pvt. LtdWarden House, 1st Floor

Sir P.M. Road, Fort

Mumbai 400 001

Phone +91 22 287 2295

Fax +91 22 287 3475

Republic of KoreaCimcorp Representative Office22F. Hanwha Bldg. 23-5 Yoido-dong,

Yeongdeungpo-ku,

Seoul, 150-717 Rep. of Korea

Telefon +82 2 783 6851

Fax +82 2 780 5802

MalaysiaDigitron Logistic Systems Sdn Bhd54-3, 2nd Floor, Jalan USJ 9 /5P

MAL-47620 UEP Subang Jaya,

Selangor

Phone +60 3 724 4 790

Fax +60 3 724 5 790

Transnorm System Sdn BhdLot Plo 28 Kawasan Perindustrian

Kluang, 4 1/2 Miles Jalan Mersing

MAL-86000 Kluang/ Johore

Phone +60 7787 9990

Fax +60 7787 9966

SingaporeDigitron Logistic Systems Pte Ltd.215G Upper Thomson Road

Singapore 574349

Phone +65 453 0192

Fax +65 453 6018

Publication

Edited by:

Concept and Visual design:

Script writer:

Portrait photographs:

Lithography:

Printing:

Swisslog Management AG, Aarau

Erdmann Design AG, Brugg

Haussmann, Weber-Thedy

Corporate & Financial Communications, Zurich

Geri Krischker, Baden

Litho AG, Aarau

Schwabe & Co. AG, Basel/Muttenz

The Swisslog 1998 Annual Report comprises

two parts: the report on the activities

and the financial overview. The annual report

is published in German and English. The

German version is binding.

Swisslog Holding AG, Webereiweg 3, CH-5033 Buchs/Aarau, Phone +41 62 837 95 37, Fax +41 62 837 95 10, www.swisslog.com