FENNERFOCUSI s s u e 4 3 D e c e m b e r 2 0 0 7

I N T H I S I S S U E

FINANCIAL HIGHLIGHTSGroup revenue for the year amounted to£380.8m (2006 £379.0m).The growthwould have been £21.0m higher at lastyear’s currency rates. Increased revenue inthe Advanced Engineered Products Divisionreflected both acquisitive and organicgrowth, particularly in our seals businesses.The Conveyor Belting Division benefitedfrom a continued expansion in the SouthernHemisphere. After a slower first halfbecause of mild winter weather conditions,order levels for the North Americanbusiness normalised in the second half ofthe year, following the earlier temporarypause in demand for energy.

Operating profit before amortisation ofintangible assets acquired and exceptionalitems increased to £39.0m (2006 £34.1m)after absorbing the effect of £2.7m ofadverse currency movements.Theunderlying growth of 24% has beenfacilitated by continuous improvement anddevelopment of our integrated service andproduct offering.

Exceptional items of £0.2m (2006 £nil)comprised a charge of £2.7m and a gain of£2.5m.The charge of £2.7m related to thereorganisation associated with theexpansion of the conveyor beltingoperations in North America and theintegration of EGC, which was acquired in

October 2006, into theseals business in Houston,Texas.The gain of £2.5mrelated to the profitgenerated from theGroup’s disposal during theyear of its non-coreinterest in KSB Pumps inSouth Africa.

Operating profit increasedto £38.2m (2006 £33.7m).Total net finance costsincurred were £4.6m(2006 £4.3m) with aresultant profit beforetaxation of £33.6m (2006£29.3m).

The headline and underlying taxation rateswere 29% and 30% respectively. Adjustedearnings per share before amortisation ofintangible assets acquired and exceptionalitems was 15.1p per share (2006 13.1p).Basic earnings per share amounted to 15.0pper share (2006 13.0p).

The Group’s ability to generate cash isevident from the net cash inflow fromoperating activities of £38.8m (2006£26.3m) emanating from both profit andworking capital management.This hasfunded the Group’s major expansion plansin the period as capital expenditureincurred rose to £32.0m (2006 £18.8m).

The acquisition of EGC cost £8.8m and thedivestment of KSB Pumps generated £5.2m.Net debt at the end of the year was£36.3m (2006 £33.1m).This benefited fromborrowings being denominated in weakerforeign currencies, giving rise to a gain of£2.5m.

The Board is recommending a final dividendof 4.15p per share which gives a totaldistribution for the year of 6.225p per share(2006 6.0p), a 4% increase on 2006.This isin line with our policy of paying a one-thirdinterim dividend and a two-thirds finaldividend.

FENNERFOCUS

Safety featuresFenner focussing on safety.Pages 6 to 8

B-LOC acquisitionEnhancing Fenner Drives productrange. Page 3

Going strong six years onFenner Dunlop’s UsFlex® conveyorbelting replaces steel cord. Page 4

In this issue we feature details from the Chairman’s Statement, Chief Executive Officer’s Statement and financial highlights from the Annual Reportand Accounts mailed to Shareholders on 5th December 2007.

Financial Highlights2007 % increase£m on 2006

Revenue 380.8 -

Operating profit before amortisation of intangible assets acquired and exceptional items 39.0 +14%

Operating profit 38.2 +13%

Profit before taxation 33.6 +15%

Adjusted earnings per share before amortisation of intangible assets acquired and exceptional items 15.1p +15%

Basic earnings per share 15.0p +15%

Dividend per share 6.225p + 4%

RECORD OPERATING PROFIT I am pleased to report that the performance achieved in 2006/7 has met our ambitious

growth targets.The fundamentals of our core markets associated with energy and powergeneration have remained strong. Against this backdrop, all of our businesses havedelivered robust returns which have culminated in a record operating profit for the Group.

New Fenner Precision website With over 100 pages of the latestinformation. Page 5

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OPERATIONSThe Advanced Engineered ProductsDivision had another strong year,particularly our seals businesses, where hightrading levels continued to be enjoyed inthe mining, oil and gas and semi conductorssectors.These businesses have gone fromstrength to strength since their acquisitiontwo years ago.The integration of EGC hasprogressed well and the initial results haveexceeded pre-acquisition expectations.Theprecision polymers businesses saw healthygrowth in both hose and industrial markets,particularly in North America.

The Conveyor Belting Division achieved afurther year of growth as the strategicdevelopment of our market strengthsprogressed in accordance with our plans.Demand for belting benefited from boththe buoyant mining conditions whichprevailed for much of the year and a strongindustrial sector. In Australia, the national

coverage of the service businessesbroadened to accommodate the needs ofour widely spread customer base.Thebusiness in China continued to expand asthe belting requirement from the coalmining sector grew, driven by this territory’sincreasing demand for energy. In NorthAmerica, the improved volumes in thesecond half enabled a good full yearperformance with operational efficienciesassisting margins. Our substantial capitalinvestment programme commenced inearnest during the period, the benefits ofwhich will be evident for years to come.Finally, results from the European businesseshave been most encouraging as economicconditions showed improvement andpenetration of new and emerging marketscontinued.

PEOPLEFenner employs over 3,500 people in itsgeographically diverse operations aroundthe world.We are fortunate to have strong

teams of talented and dedicated peoplethroughout the Group. I recognise that theachievements to date could not havehappened without their support andtherefore, on behalf of the Board, I wouldlike to extend my appreciation andgratitude.

OUTLOOKIn the first few weeks of 2007/8 trading hascommenced in line with our expectations.Current order flow remains healthy and ourmarkets are generally buoyant.The effect ofeconomic uncertainty, particularly in the US,has not been seen directly in ourbusinesses, although we are alert to thepossibility of this occurring.The medium andlonger term drivers remain strongly positiveand, we believe, endorse our customer ledinvestment strategy. As a consequence weremain confident of continuing growth thisyear.

Colin CookeChairman

“The Fenner businesses are well invested andpositioned in geographic locations wheremarkets offer good growth prospects.”Mark Abrahams - Chief Executive Officer

MAINTAININGTHE MOMENTUM

CONVEYOR BELTINGCapacity and temporary weather relatedlocal market weakness constrained growthin the first half. Improved demand and abetter mix of business led to an increase inprofitability in the second half.

Internationally traded coal prices, one ofthe key indicators of the relative health ofthe market for conveyor belting,demonstrated by the McCloskey graph,rose steadily throughout the year. Coalprices are affected by, but not linked to, oilprices, but coal is seen as a more securesource of basic energy, especially in Chinaand North America.

High coal stocks and a warm winterdepressed demand for Fenner DunlopAmericas in the first half.Volume recoveredin the second half and the long termoutlook remains positive.The slowdown inthe North American housing market andconcerns over sub-prime credit had littlevisible impact on our operations.With adedicated sales team, the businessstrengthened its position with nationalaccounts during the year which means thebusiness is well placed to exploit both coaland industrial markets in future years.Withrecent international investment byAmerican coal companies, Fenner DunlopWorldwide is uniquely placed to servicethese customers. In industrial markets,continued high levels of constructionactivity provided demand for many materialhandling applications ranging from forestryto steel manufacturing.

Our UK based operation made gains inmarket share in Western Europe andcontinues to penetrate into new marketsopening up in Eastern Europe and theformer Soviet Union.

Domestic industrial markets in WesternEurope were steady for the first half of theyear and grew in the second half. Buildingon the changes made last year, theEuropean operation continued to improve

its margins through the year and to exploitits diverse product range by improvingcustomer perception of quality andcontinuing with its improvements inmanufacturing efficiencies.

Operations in China, India and South Africabenefited from continued strength in thecoal industries in their domestic markets,primarily driven by the demand for powerfor both industrial and domestic use. Newproduct launches are planned, including asteel cord line in South Africa to enable thebusiness to expand beyond the coaldominated product range into suchapplications as overland conveying.

In Australia, Fenner Dunlop experienced apositive trading year with a particularlystrong first half.The service business offersresilience to the otherwise cyclical natureof new belting projects.This counterbalancereinforces the Group’s strategy to invest invalue added services.The Australian ironore market is booming with numerousprojects coming on line to increaseproduction.The business is well placed tosupply into these new projects and to offerthe value added after sales services.

Work continued to develop rEscanalongside the Australian service business. Inthe Americas, and elsewhere, the service

Part of the extensive EGC range of high precisionfluoroplastic and thermoplastic products.

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business has been reorganised and isbeginning to implement our successfulservice model whilst complementing ourexisting distribution channels.

ADVANCED ENGINEERED PRODUCTSAEP is made up of four discrete businesses.They share the same broad strategicobjectives of seeking to provide engineeredsolutions to customers’ needs using materialscience and design skills in niche applicationswhich are usually performance critical.Themarkets are very diverse and thereforeeach business within AEP deploys differenttactics and value propositions to achievetheir strategic goals.

Fenner Advanced Sealing Technologies(“FAST”) had another record year due tostrong organic growth combined with theEGC acquisition. Demand continued to bestrong for seals for oil, gas and miningapplications. FAST continues to focus onniche performance critical and higherpressure applications for which a strongadvanced materials capability is necessary.

A key part of FAST’s strategy is to continueto roll out the Six Sigma continuousimprovement programme, with the primaryobjective of achieving market leadingdelivery performance and availability for itsproduct range.The new facility in Shanghaiis being used to develop business in Asiaand there are new customer serviceoperations in India and South America.Todevelop new business faster, all seals servicesubsidiaries have been equipped with CNCprototyping capability.

The hose business, trading as JamesDawson, is a world leading producer ofspeciality hoses for diesel engine, truck, busand off road commercial vehicles.The hosebusiness successfully relocated its Chinesemanufacturing into a purpose built facility inShanghai during the year and is nowproducing hose for the South East Asian

market from the new bespoke factory.Domestic growth combined with exportsincreased the sales of our Chinese hosefacility by 50%.

Restructuring of the business in theprevious year has brought improved marketfocus to Fenner Drives and FennerPrecision. Fenner Precision producespolymeric belts, tyres and rollers for theglobal office automation market, withincreased focus on mission critical,document handling applications. FennerDrives continues to develop a growingrange of innovative, proprietary productswhich solve problems in the powertransmission, motion control and unithandling markets.The key geographicmarkets for Fenner Precision and FennerDrives are North America, Europe and Asia,where demand continues to be robust.Capacity at the Manheim facility wasincreased in late 2006, enabling the businessto meet customer demand.

AEP continues to look for acquisitionopportunities to strengthen its currentoperating bases and develop itsgeographical reach.

OUTLOOKThe new year has started in line with ourexpectations.

Global commodity markets including oil,iron ore and coal remain strong in terms ofprice and demand. However, this must betempered by the weak housing andinfrastructure market in North America plusthe, as yet unknown, fallout from the sub-prime mortgage losses. Althoughapproximately half our business is in NorthAmerica, overall our current order intakereflects commodity strength.

Our organic investment programmecontinued throughout the year in supportof our customers’ investments in newprojects.The commissioning phase of theseprogrammes will be completed in the next6 to 18 months, providing growth in futureyears.

Our intentions are not limited to organicinvestment and we continue to look forstrategic acquisition opportunities across allour businesses.

The Fenner businesses are well invested andpositioned in geographic locations wheremarkets offer good growth prospects.Weanticipate that the combination of thesefactors will enable us to continue ourprogress in 2008.

Mark AbrahamsChief Executive Officer

The new steel cord manufacturing facility atFenner Conveyor Belting South Africa.

B-LOCACQUIREDAnnouncing the acquisition of B-LOC.

Fenner acquired gross assets ofapproximately $2.6m from B-LOC which isa New York based, privately ownedcorporation involved in engineering andselling specialist power transmission andmotion control components.

Mark Abrahams, CEO of Fennercommented that 'B-LOC is well known inthe North American market.Their productsextend and complement Fenner's range ofhigh value-added, proprietary drivesolutions'.

SeasonsGreetings & BestWishes fora Happy &ProsperousNew Year

SeasonsGreetings & BestWishes fora Happy &ProsperousNew Year

Fenner Dunlop’s UsFlex® Conveyor Beltingreplaces Steel Cord at the Blue Diamond PrepPlant in Kentucky, USA and is going strong sixyears on!

Reducing costs and improving availability isthe goal of every coal producer in Americatoday. Higher capacity belt conveyor systemshave created new challenges to meet thesegoals. Longer, wider, and higher tensionsystems, running at faster speeds, conveyingROM coal, clean coal and refuse havecreated a new focus on belts that will standup to these demanding systems.

This new level of demand was met bydeveloping conventional plied, fabric carcassbelting with tension ratings up to 3000 PIW.

When used in potentially abusiveapplications, such as, when high rejectmaterial is conveyed underground or coarsemine refuse is conveyed away from the prepplant, Fenner Dunlop’s MineFlex® (MSHAunderground) or UsFlex® (surface) belt maybe the answer to meeting cost andavailability goals.

James River Coal’s Blue DiamondLeatherwood Prep Plant is located in thepicturesque hills surrounding Leatherwood,Kentucky.The plant’s 42” wide ST 1250 steelcord refuse belt used to see a lot of abuse.Conveying approximately 2,000,000 tons peryear of minus 6” refuse on a 17° incline fornearly 2400ft was a challenge. With splicefailures and loose cords often occurring thisbecame costly in both dollars and downtime.

Due to these costs, six years ago BlueDiamond decided their steel cord belt hadto be replaced with something better.

Fenner Dunlop’s UsFlex® D12, 2 ply, 1250PIW was purchased based on three primaryproperties:

1. No other manufacturer’s belt could comeclose to UsFlex®’s resistance to rip, tear andimpact.

2. If replacement splices or belt repairs wereever required, these could be performed byXpress Services, Fenner Dunlop’s local fullservice distributor, at a substantially lowercost than repairing steel cord.

3. Due to UsFlex®’s high modulus and lowstretch, the belt could be installed withoutrequiring extensive modification to BlueDiamond’s existing take-up - somethingother manufacturers could not offer.

Six years later, having conveyedapproximately 12,000,000 tons of refuse, theUsFlex® belt is still in service. In fact, splicingand belt maintenance costs have plummetedover 80% since the installation of theUsFlex® belt.

Would Blue Diamond trust UsFlex® again?Yes. Bobby Caudill, Blue Diamond’s PlantManager, said “since the successful installationand performance of the UsFlex® belt on hisrefuse system, most other belts replaced atthe plant since then, including a two milelong portal-to-plant feed belt, have beenFenner Dunlop UsFlex® straight-warpconveyor belting.”

by Jerry Lovitz,Territory Sales Manager, MiningDivision, Fenner Dunlop America,

On behalf of the Dr. Robert C. Haley’s Giftof Educational Opportunity, Inc., we arepleased to announce the Dr. Robert C.Haley Scholarship. Three $3000 scholarshipswill be presented annually to children oremployees of Fenner Dunlop Americas,their distributors and their customers.

The scholarships will be donated in thememory of Bob Haley, a former presidentof Fenner Dunlop Americas. He was veryinfluential in the belting industry throughouthis 35 years in the business and he servedas one of the industry leaders for manyyears. The scholarships are intended forstudents who wish to pursue a degree in

Mechanical Engineering, Mining Engineering,Chemical Engineering or Textile Engineering.

We are very pleased to announce the firstrecipients of the scholarships, both childrenof Fenner Dunlop Americas Distributors:

James Blue, son of John Blue of ConveyorServices, Price Utah, is currently attendingthe University of Utah, majoring inElectrical/Chemical Engineering.

Stephen Bonneau, son of Al Bonneau ofKing Energy, Denver, CO, will be heading toWashington University in St. Louis, majoringin Engineering and Business.

It is with greatpleasure thatwe announcethe marriageof David andDeborah Hurdrecently in LasVegas, Nevada.

The privateceremonytook place atthe FlamingoHotel on oneof thesecludedwaterfall terraces in the 15 acre lushtropical gardens surrounding the hotel.

Mick Smith of Human Resources, served asBest Man and Robin Gill, Customer ServiceManager, attended Deborah as Matron ofHonour. The lovely ceremony waswitnessed by a small group of family, friendsand Fenner folks.

Congratulations to David and Deborah andbest wishes as they begin this new chapterin their lives as man and wife.

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SCHOLARSHIPS AWARDED

BEST WISHES

GOING STRONG SIX YEARS ON

In Memory of Dr. Robert C. Haley former presidentof Fenner Dunlop Americas

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Ceatec is one of Asia’s leading electronicsand IT shows and features the latest inconsumer electronics from Japan’s leadingdigital electronics manufacturers. Many ofthese companies are household names withdivisions that manufacture digital printersand photocopiers. Fenner Precision isbuilding a reputation as a leadingmanufacturer of components for officeautomation equipment and plans to grow itssales in these market segments.

The Ceatec show was well attended by250,000 people.Visitors included potentialnew customers, members of the press,recruiting agencies, Japanese importers anddistributors as well as the general public.

By being in Japan for the Ceatec showmembers of Fenner Precision’s sales teamwere also able to meet with four existingcustomers including Canon the large printerand copier manufacturer.These meetingsprovided opportunities to furtherstrengthen relationships and discuss newprojects.

Fenner Precision is no stranger to theJapanese market and has for over 20 yearssupplied custom friction products toMinebea and TsubakiEmerson two verylarge Japanese original equipmentmanufacturer’s, however winning theJapanese office automation market is justbeginning.

Mike Thompson Managing Director ofFenner Precision was also in Japan the weekof the Ceatec show and took time out tovisit the show.

There is no easy way to win business inJapan except by product innovation andmaintaining world class manufacturingstandards.

Fortunately the brand name Fenner is wellrespected around the world and FennerPrecision is rapidly establishing its ownreputation for high standards of customerservice and quality products.This reputationis being developed with leading globalmanufacturers of paper propulsionequipment, many of whom already have tiesto Asia and Japan.

With over 100 pages, the new websitefeatures the latest information on FennerPrecision’s belts, tires and rollers, pulleys, andtechnical coated fabrics.

There are links to product comparisons,advantages, custom features, applications,markets, and environmental, health andsafety issues. An in-depth engineeringsection includes interactive tools to helpvisitors design and select the appropriateFenner Precision product for their specificapplication.

A News Room section features currentpress releases and company news. TheTrade Show section lists dates and locations

of the shows in which Fenner Precision isparticipating. Under the Careers tab, visitorscan view job opportunities at FennerPrecision’s U.S., Europe and Asia facilities.

The website is viewable in seven differentlanguages: English, Japanese, Italian, German,Chinese, Spanish and French.

Tony Watts, Global Marketing Manager forFenner Precision, states “The depth andbreadth of information available on our newsite is quite extensive. With an emphasis onbeing user-friendly, we’ve provided detailedproduct information and tools to assistvisitors in selecting the right FennerPrecision products for their application.”

WEBSITERECEIVESACCLAIMThe new Fenner Precisionwebsite is drawing attention not only from ourcustomers but from the communication anddesign audiences as well. The judges of the2007 MarCom Awards have taken notice ofthe website’s design and awarded its creators,North Star Marketing in the USA ahonourable mention for the project.

The MarCom Awards is an internationalcreative competition that recognisesoutstanding achievement by marketing andcommunications professionals. Judges areindustry professionals who look forcompanies and individuals whose talentexceeds a high standard of excellence andwhose work serves as a benchmark for theindustry. The competition is administeredand judged by the Association of Marketing& Communication Professionals.

There were over 5,000 entrants fromthroughout the United States and severalforeign countries.

FIRST JAPANESE TRADE SHOW

INTRODUCING www.fennerprecision.com

Members of the Fenner Precision Asian sales andmarketing team at the Ceatec trade show in TokyoJapan. Left to right Ray Rutkowski – Asian SalesManager, Julia Hsieh – Regional Sales Manager,Tony Watts – Global Marketing Manager

Three members of Fenner Precision’s sales and marketingteam attended the Ceatec trade show in Tokyo Japan toexhibit Fenner Precision’s range of belts, tires and pulleys.This was the first time a team from Fenner Precision hasexhibited at a trade show in Japan.

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2007 has been quite a year for health andsafety at Hallite. Since the factory move in2006 we have endeavoured to improve safetyawareness and responsibility at all levelswithin the company and this year the hardwork of all staff was duly recognised in theattainment of our RoSPA award.

A valuable aid in improving our safetysystems has been our use of the HSEbenchmarking tool CHaSPI (CorporateHealth & Safety Performance Index). SinceMay 2006 we have submitted three indicesand seen a gradual but significantimprovement in many areas of our health

and safety management system.

In September we were contacted by theHealth and Safety Executive and asked if wewould be interested in discussing ourexperience of using CHaSPI with Mr OwenQuake, a senior official from the Health andSafety Regulator in Victoria, Australia. Owenwas coming to the UK to research CHaSPIand it’s relevance to a similar program he isplanning to establish in Victoria. He visitedthe Hampton factory in October to reviewour implementation of CHaSPI and gain aninsight into its reception by managers andemployees.

To enhance the safety in Fenner China, theShanghai Fenner, FAST and Dawsonoperations, have introduced high visibilityclothing for visitors and office staff.

The factory floor can be a dangerous andunfamiliar environment for both visitors tothe company and office staff.When visitingthe workshops they will be provided withhigh visibility clothing so they stand out andso factory operatives will be aware to takeadditional care.

Visitors will wear orange jackets and officestaff will wear yellow thus making itimmediately obvious the status of theperson/s visiting the factory.

In the USA, Fenner Precision and FennerDrives held a joint celebration for NationalSafety Month with a full month of educationaldisplays and safety awareness activitiescentred around the theme ‘Be Safe at Workand Home’. One of the goals for this year’scelebration was to include the entire family, soa Safety Poster Contest was held.

Associates and their families were invited tosubmit posters and employees voted ontheir favourite posters in each of four agecategories. Winners received gift certificatesand all entrants received a thank you gift. AtManheim, our poster artists were invited toFenner for a pizza party and a chance tosee where Mum, Dad or Grandma works.

The posters are being used to make a 2008safety calendar which will be given to eachassociate and contestant as a reminder towork safe at home and work throughoutthe year.

To be safe at work, Fenner Precision,Manheim, has made several improvementsin its work place. A chemical storage roomhas been built to help reduce materialhandling and provide safer storage forchemicals used in the processes.

Additionally, a training management systemhas been put in place.Training is an integralpart of safety, as it helps us to ensureassociates have received appropriatetraining so they can perform their job safely.

This management system will help us moreeffectively identify safety needs and provideconsistent training.

Fenner Precision, Manheim, also uses asafety investigation program to trackincidents, document corrective actions andfollow-up to ensure corrective actions have

been completed.This program iskey to finding theroot cause of anincident and tohelp ensure thatwe are making thework place safer.CPR & AED

TRAININGOver the last several months,YolandiaPeters, Health, Safety and EnvironmentalManager for FAST-Houston, hascoordinated CPR and Automated ExternalDefibrillator (AED) training for theemployees of CDI Seals and EGC Plastics.This training was implemented in order foremployees to learn how to react in anemergency situation.

“Knowing how to react and be responsiveto safety situations is a vital effort.We thankall of the CDI Seals and EGC Plasticsemployees that have taken the time tolearn these life saving measures” saidYolandia.

IMPROVING AWARENESS

BE SAFE AT WORK & HOME

Front row: Hope Kiehl, Macaylah Mutchler,Cameron Mutchler, and Spencer Brendel.Back row: Quentin Brendel, Ariella Trough, SylviaGibson-Gingrich.

Sylvia Gibson-Gingrichwith her winningpicture

The high visibility clothing being worn by YangXufang and Operations Manager, Piet Lievens

HIGHVISIBILITY

FOCUSSING ON SAFETY

NEW DOCKLEVELLERAfter a recent workplace transport riskassessment at the Marfleet facility in Hull,the decision to purchase a hydraulic levellerwas made.The risk assessment hadidentified that when unloading raw materialsor loading belting into containers or ontowagons by fork lift truck, the safety of thisprocedure would be significantly enhancedby the addition of this equipment, by whichthe trucks can access the rear of thecontainer or wagon regardless of thediffering heights of such vehicles.Theequipment is due for delivery andinstallation before the end of the year.

Safety records continue to be broken atApex Fenner with another two branchesreaching a milestone 500 LTI (Lost TimeIncident) free days.

Recently the Cairns and Adelaidebranches reached the 500 LTI free total,taking the number of branches havingachieved this number to four, and severalbranches having had no injury for morethan 300 working days.

The Perth branch currently sits on 1468LTI free days with no injury beingrecorded since opening its doors fouryears ago!

Safety is also the theme behind theadvertising campaign for 2008 with adsfeaturing the Site Co-Ordinators andSupervisors talking about just howimportant it is for them to get their crewshome safely to their families each night.

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The machine shop, Fenner Precision US,have been rewarded for their safetyperformance.They had ‘Perfect Attendance’in their safety meetings this year ; they werethe only department in Precision to boastsuch an accomplishment. In addition, adirect correlation can be drawn betweensafety performance and safety awareness.

This can be seen by the fact that the machineshop did not have a recordable, restricted,or lost time accident since April, 2004.

The concept is sometimes referred to asthe five pillars and involves:

1. Removing all items from the workplacenot needed for current production (oradmin) operations.

2. Ensuring that all items needed to carryout the task are close to hand and areeasily found and put away.

3. Keeping the workplace clean, which, notonly includes floors but also machinery aswell.

4. The method used to maintain the firstthree steps.

5. Sustaining, by making a habit of, properlymaintaining correct procedures, which is

very important because without it thepreceding actions will not last long.

If properly implemented, an increase inproduction and a fall in accidents isexpected and will apply to all levels and alldepartments throughout the Precisionbusiness unit in Lincoln.

Safety is an integral part of the business.Thework that has been done over the lastcouple of years provides the foundationneeded to reach the ultimate goal which isimplementation of the OSHAS 18001safety management system.

This system fits nicely with the five ‘S’program that Fenner Precision hasembarked upon.

SETTING RECORDS

FIVE ‘S’ SAFETYPROJECT AT LINCOLNOn assuming the mantle of the Health and Safety Manager, Fenner Precision Lincoln, theQuality Manager, Ken Smith, is about to embark on an ambitious five ‘S ‘ project.To theuninitiated this involves five steps required to improve productivity and reduce work placeaccidents.

Dock leveller due to be installed at FennerDunlop Europe’s site at Marfleet, Hull.

Front row: Dan Gingrich, Darren Husted, andCorey CasselBack row: Ed Fessler, Eric Husted, Mike Winters,and Tom Husted

C O N V E Y O R B E L T I N G E U R O P E

THE NUMBER ONEPRIORITY AT APEX

RIDE FOR MIRACLESTina Simmons of Fenner Precision, Manheim,joined the third Annual Children’s MiracleNetwork’s Ride for Miracles.

The 45 minute long charity ride involved 55Harley Davidson motorcycles and almost100 participants.

At the finish line awards were given to thetop three fund raisers.Tina came in secondraising a fantastic $745.Well done Tina! Thisyears’ event raised an amazing $16,182bringing a total of $33,000 raised by thisevent over the last three years.

The Children’s Miracle Network is thealliance of premier children’s hospitals acrossthe United States and Canada.

Every year, these hospitals treat 17 millionchildren for every disease and injuryimaginable, providing state-of-the-art care,life-saving research and preventativeeducation for children, 24 hours a day, 365days a year.

All of the money raised stays in the localarea and is used for research and purchasingnew and more updated machines for theChildren’s Hospital.

Tina is pictured with her husband Jim (top)and Brent Benard of Fenner Drives,Manheim (right) with Kyla Miller in thecentre. Kyla has attended the ride for thepast three years and was the Children’sMiracle Network Poster Child.

Tina said “Kyla was suffering from a rare typeof brain tumour and we are sorry to saypassed away in August this year.We didn’texpect her to be able to go this year, but shewas a trooper who smiled the whole time! Itactually makes you forget about all of theaches and pains that we complain about.”

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An early example of this can be found inthe automobile industry. Around 1910, therewere over 500 companies competing in thisfledgling industry. 20 years later, there were60.Ten years after that, the number wasdown to 20.Why did so many fail?

Most cars early in the last century were builtone at a time, at a very high cost per unit.Then Henry Ford introduced the assemblyline, a radical departure from the traditionalmethod. It quickly became apparent this wasthe way to go. So the answer is simple - earlyadopters who saw the success of this methodand had the courage to change, survived andprospered. Those who didn’t, failed.

Today, Fenner manufactures and competeson a global scale. New ideas, methods,philosophies and technologies areconstantly being introduced and tested.Successful industry leaders adopt these andmerge them into their day-to-dayoperations. And by doing so, they retain

their position as leaders. It’s a continuouscycle of improvement. Fenner Drives’WorldClass endeavour is an effort to make it oneof those leaders.

Right now, Fenner Drives has a World Classmodel that defines the best practices of allaspect of the organisation:

• Leadership• Sales and Customer Service excellence• Associate development• Business partnership• Agility• Innovation• Focus on the future• Management by fact• Safety & social aspects• OperationsThis effort is bigger than anything else thathas been undertaken to date. It will takesome time to successfully merge all of these

World Class practices into Fenner Drivesnormal mode of operation. The essence ofbecoming World Class is incorporatingthese leading edge ideas and practices intothe business. Being World Class is aboutbeing a practitioner of these leading edgemethods. Today’s leading edge becomestomorrow’s standard practice. Tomorrow’sbest practice has not been invented yet.

Becoming a world class company is anevolutionary process. It is both difficult anddangerous to attempt to jump to a worldclass level without having gone through asteady, incremental improvement process. Itrequires dedication and patience. As onedefinition of world class states: “Rankingamong the foremost in the world; of aninternational standard of excellence; of thehighest order.” A lofty aspiration, but onethat Fenner Drives is committed to achieveas a global leader in its fields.

by Keith Aument.

A WORLD CLASS ORGANISATIONLooking back over time, there always seems to be people on the leading edge of doing things better than those around them. Somehow theydiscover or have the courage to implement methods that set them apart. Eventually, these methods are adopted by the mainstream not onlybecause it becomes clear it’s the best way forward, but also it may become a case of adopt or risk becoming obsolete.

CENTRALSAFETYCHAMPIONSCentral Safety Champions, the new name forFenner Dunlop America‘s Central SafetyCommittee, has a plan to champion thesafety cause for their employees.

With this new name comes a newoutlook.The team is currently focusingon three major priorities, knife safety,MSDS (Material Safety Data Sheets)and communications.

The goal is to reduce the personalinjury rate, reduce the need for knivesby investigating the safety andeffectiveness of a pneumatic cutterand eliminate the incidents involvingcuts. Getting all employees on thesame MSDS system will streamlineprocesses and by submitting monthlyarticles that will keep everyoneinformed and updated on the progressthey have made.

C O N V E Y O R B E L T I N G A M E R I C A S

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BREASTCANCERAWARENESSThe employees of FAST-Houston recently helda Breast Cancer Awareness Benefit andFundraiser for Susan Koska, Purchasing agentfor EGC Plastics, a division of Fenner AdvancedSealing Technologies.

Susan is currently in remission from BreastCancer.

The Benefit and Fundraiser consisted of asoftball tournament, raffle, silent auction anda concession stand.

Four softball teams entered to play thedouble elimination tournament.Vendersfrom Kent Landsberg and GNK each had ateam as well as a team from CDI Seals andEGC Plastics. GNK were the tournamentchampions with EGC Plastics coming in atsecond place.

The Benefit and Fundraiser was a hugesuccess and raised $1400 for Susan. Greatfun was had by all and a big thank you to allthe vendors and employees who suppliedraffle items and donations and for comingto support Breast Cancer Awareness andSusan.

Susan Koska was presented with a Breast Cancerthemed Louisville Slugger bat, donated by FASTemployees Melissa Hooper and Heather Peden anda glass display case, also donated by FASTemployee Charles Allen, held by her husband Mark.

Congratulations goto Nguyen Phanwho retired fromEGC Plastics,Houston,Texasrecently. He workedin the Automaticsdepartment of EGCPlastics for 19 years.We wish him ahappy retirement.

After more than 19years of service withEGC Plastics, ShirleyGoodman retired inOctober. Shirley hasworked in InjectionMolding / 2nd Opsher entire career withEGC Plastics.CongratulationsShirley!

Hallite Seals International Ltd,Hampton, held an employee day toraise money for the Shooting StarChildren’s Hospice Charity.

A raffle was held which raised a totalof £1000 which was presented toAlex Robinson of the Shooting StarChildren’s Hospice by Vijay Markandayand Eileen Osborne of Hallite SealsInternational.

Linda Birdsall, Geoff Rivers (left) and PeterMalloy (right) congratulate Linda Birdsall forher 40 years of service with Fenner DrivesLeeds, UK.

Geoff Rivers (left), Fenner Drives Leeds, UKis congratulated by Peter Malloy for his 25years of service with Fenner.

Dave Winters (left), Fenner DrivesManheim is congratulated by Eric Nelsonon his 25 years of service with FennerDrives. Dave is a Mechanical DesignEngineer

Keith Myers(left), FennerDrives Manheimis congratulatedby PetePzedpelski forhis 25 years ofservice withFenner Drives. Keith currently is a latheoperator in the Trantorque Department.

Shirley Goodman and Ann SommersNguyen Phan

EGC RETIREMENTS

LONG SERVICE

SHOOTING STARS

WEAR ITPINK DAYOnce again Fenner Group employees at Hessleand Fenner Dunlop Europe employees atMarfleet took part in the ‘Wear it Pink’ day forBreast Cancer Awareness.

Over £210 was raised on the day andour thanks go to all who participatedin this worthwhile event.

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GROUP SECRETARIALWe are pleased toannounce that HuanQuayle joined theGroup CompanySecretarial team atHessle as AssistantCompany Secretary.

Huan joins us fromCape Plc and hasseveral years experience of working in acompany secretarial capacity. Huan has alaw degree and will shortly be completinghis Institute of Secretaries & Administratorsprofessional qualifications to become a fullyqualified company secretary.

He will work closely with Debby Bradburyand Gillian Wilkinson to provide full supportto the Group and the Operations in thewide range of tasks that fall into thecompany secretarial function.

This appointment brings the companysecretarial team up to full strength with thefollowing structure:-

Debby BradburyGroup Company Secretary

Huan QuayleAssistant Company Secretary

Gillian WilkinsonCompany Secretarial Assistant

Both Huan and Gillian will report in directlyto Debby Bradbury

Ironically, what the team does not have is asecretary but they are all computer literateand can do their own typing!

GROUPFINANCE We are pleased toannounce that DavidNewton has joined theGroup Treasury andTaxation team asGroup TaxationAccountant, based atHessle reporting toAndrew Caley.

As most of you will know David, who is achartered certified accountant (ACCA), waspreviously a Group Internal Auditor.

His new responsibilities will includedeveloping and standardising group taxreporting systems and compliancemonitoring, UK corporate tax compliance,UK and group transfer pricing systems anddocumentation. He will also assist with adhoc tax projects, provide cover for Grouptreasury functions, and also assist withtreasury reporting systems.

The Group Treasury and Taxation team is:-

Andrew CaleyGroup Treasurer and Head of Tax

David SykesAssistant Group Treasurer

David NewtonGroup Taxation Accountant

Ben Ficklen (based Charlotte, USA) USTreasurer and Tax Manager

Brian Elwick, who is a independent taxconsultant will continue to assist withtaxation projects as required

INTERNALAUDITTEAMWe are pleased towelcome Claire Moorto the Internal Auditteam.

Claire joins us fromthe local firm ofaccountants Harris,Lacey & Swain Chartered Accountants andhas qualified with ACCA membership.

ITALIAN MARKETPARTNERSHIP

Pictured from left to right: Allessio Audisio,controller and Stefano Santalena, managingdirector Hallite Italy. Edwin Have, managing

director and Lorenzo Villa, sales manager ItalyDunlop Conveyor Belting Europe.

Hallite Italy is very successful on theItalian market. Fenner Dunlop ConveyorBelting Europe also has significantbusiness levels in Italy but set a goal ofbecoming the number one in the market,as is the case in many other Europeancountries.

Dunlop hired a excellent new salesmanager, Lorenzo Villa to achieve thisambitious goal. In the view of bothStefano Santalena, managing directorHallite Italy and Edwin Have, managingdirector Fenner Dunlop Conveyor BeltingEurope, it is evident that joining forces

will help both companies in their aim togrow the business further.

It was agreed that Fenner Dunlop willuse the Hallite facilities to start up theirnew Italian business. Furthermore bothcompanies will join forces in thedevelopment of the market in using theirbusiness contacts to their mutual benefit.

NEW APPOINTMENTS AT HQ

C O N V E Y O R B E L T I N G E U R O P E

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EPICOR SIGNINGFenner Dunlop - Australia have recently signedwith American Software Vendor Epicor tosupply their latest Business ERP solution(Vantage) to all Australian operations.This is amajor undertaking for Fenner Dunlop –Australia during a phase of national growthand new business challenges.

David Gaul (Manager M.I.S) claims “theevaluation process to find a replacementsolution to our existing ten year old‘System21’ has been long and exhaustive.We are very pleased to have reached thisdecision and look forward to the projectimplementation phase and a long andsuccessful relationship with Epicor”.

The above decision is likely to extendinternationally, with Fenner DunlopAmericas drawing nearer to finalising theirown recommendation of Vantagethroughout their U.S operations.

SINGARINISEMINARFenner Conveyor Belting Pvt Ltd recentlyheld a seminar with top officials andmining personnel from SCCL (SingariniCoal Company Limited) where RichardWilkinson and Colin Axford gavepresentations, supported by TG Mohanram,Tonmoy Banerjee and Prakash Tewary.

The aim of the seminar was to makethem aware of solid woven high tensilebelts and the advantages over Steel Cordfor use underground.The undergroundcoal mines in India are not as advancedas the likes of China. However Indianeeds to increase its coal production if itis to meet its demands for PowerGeneration.

This will mean using more modern andproductive mining techniques that willhopefully translate into higher tensile beltrequirements. Up to now any high tensilebelt used on the surface are Steel Cordbelts, hence the need to make themaware that high tensile belts can be ofthe solid woven variety as well.

Highlighting the global reach of Fennerby giving them the history of Fenner andthe conveyor belting division in particular,so it was clear that Fenner is now underthe control of the worldwide Fennergroup and showing them the full rangeof conveyor products available proveduseful, as this was followed by a livelyquestion and answer session followed bydinner.

Fenner are at the moment in discussionswith SCCL regarding a high tensile belttrial which would be supplied fromMarfleet.

by Richard Wilkinson

FENNER STAFF ENHANCECOMMUNICATION SKILLSAs part of the “English communication 2007”scheme, a 20 day programme was organisedby Fenner Conveyor Belting Pvt. Ltd., in Nagari,in association with the Department of Englishfrom Fatima College, Madurai.

Many renowned staff members from thecollege came to the premises to improvethe communicative competence of Englishof the Fenner employees.

The objective of this forty hour programmewas to prepare the Fenner employees toovercome the fear of the language, motivateand equip them better to communicate inEnglish with any challenges that lay ahead.

Modules had been prepared to suit thedifferent needs of the trainees.The trainingstarted with confidence building sessions,

included enhancement of vocabulary, bodylanguage, basic grammar and phonetics.Thelearning process was helped through multi-media techniques and has been successfullycompleted.

Thanks for this programme go to thePrincipal Rev. Sr. Fatima Antony and thedepartment of English, Fatima college,Madurai, for their untiring efforts andservice rendered to the Fenner ConveyorBelting employees.The expertise of thevisiting team has greatly benefited them.

Mr.T.G. Mohanram, Senior Vice Presidentand Director of Fenner Conveyor BeltingPvt. Ltd. was instrumental in bringing thisprogramme at the factory.

Fenner staff who took part in the programme

Pictured from left: Craig Charlton (Epicor VPOperations ANZ), Kim Rosman (Fenner DunlopAustralia Strategic Support Coordinator), DavidHurd (Fenner Dunlop Americas President NorthAmerica), David Gormley (Epicor TerritoryManager) and David Gaul, during contract signing

1 2I n t e r n a l n e w s l e t t e r o f t h e F e n n e r G r o u p

Members of the Fenner Old Boys BowlingSociety met up again in October to completethe celebration of the Society’s 20thAnniversary.

Play soon got underway at the BlackburnIndoor Bowling Club, which unfortunately isfacing closure in March 2008. After a pairs’competition lasting just over an hour, BasilSmith and Eric Bancroft emerged as thewinners and Jim Lowry and Tom Jack tookthe runner-up spot after narrowly defeatingHayden Kenyon and Norman Cooper.

The Old Boys then moved on to

Pleasington Golf Club whereover a drink and an excellentlunch some old photographswere passed around bringingback memories of yesterday.

The presentation of prizesbrought the meeting to a closewhere it was also announcedthat another meeting wasplanned for March next yearprior to the closure of theIndoor Bowling Club.

by Bill Officer

Competitors from James Dawson / FennerPrecision at Lincoln and Fenner Dunlop,Marfleet took part in the first ‘Lincoln v HullRyder Shield Golf Competition’.

The weather was fair with little wind sothere were no excuses for not hittingstraight shots!

A team of ten players from the Lincoln sitecomprising of players from both JamesDawson and Fenner Precision who playedagainst ten players from Fenner Dunlop,Marfleet at Grange Park, Messingham, a golfcourse on neutral territory mid distancefrom both sites.

The Hull team won a ‘doubles’ competitionin the morning on the Par 3 course (3 – 2)and the Lincoln team won a ‘singles’competition in the afternoon on the 18-hole course (9 – 1).

The event was thoroughly enjoyed by allplayers and is the first of many; the Hullteam are already planning a return matchfor next year.

FOBBS 20TH ANNIVERSARY

LINCOLN vHULL RYDERSHIELD

Tom Donnelly (on the left) who captained the Hullteam presenting the Ryder Shield to KeithMeddings who captained the Lincoln team.

SIX IN A ROW!

Pat Cook had 18 years of service when sheretired from Fenner Drives, Manheim earlierthis year. Starting in Link Belt runningriveters and the original PowerTwist® andlater went to Fabrication, she was alsoknown for her willingness to workwherever she was needed.

Pat was known for always rememberingbirthdays and usually initiated the cards andgifts for her co-workers.

Pat, we wish you a long, happy, and healthyretirement.

The Fenner Bowling Club held their AGM andpresentation evening recently.Tony Browne,Club Secretary, reports on another successfulseason for the club.

The County Pairs Division One team wonthe league for the sixth successive season,winning the Division One Works Sport,TheLen Butler Trophy and the Hull Daily Mailtitles, along with the Hull and District Pairstitle.

Singles winner – M. BrattanRunner up – T. Atkinson

Macalpin winner – M BrattanRunner up – R. Edgecumbe

Pairs winners – M. Pounder & K.SimmsRunners up – F. Fletcher & C.Wilkinson

Garthwaite winners – M. Pounder, K. Sims& J. UsherRunners up – M. Brattan, G. Mitchell& R. Kenway

The Fenner BowlingClub members at

their AGM andpresentation evening.

PAT RETIRES