Introduction to Jungbunzlauer...2018 to today Opening of Application Technology Center, Chicago, USA Introduction to Jungbunzlauer Status: April 2019 7/17 Working at Jungbunzlauer

For current and future

employees of Jungbunzlauer

I n t r o d u c t i o n t oJ u n g b u n z l a u e r

Status: April 2019

Introduction to Jungbunzlauer Status: April 2019 2/17

Table of contents

Message from Alexander Kahane, Chairman of the Board 3

Being a "Jungbunzlauer" – Message from Tom Knutzen, CEO 4

Our aspirations – the vision 5

Jungbunzlauer in facts 6

More than 150 years of history 7

Working at Jungbunzlauer 8

Our values 10

Quality 11

Our employees 12

Our path forward – the strategy 13

Safety 14

Sustainability 15

Our journey – the next stage 16

Karl Kahane Foundation 17

Message from Alexander Kahane

Chairman of the Board

Dear Jungbunzlauer Team

Jungbunzlauer was bought by my late father

Karl Kahane in 1967 and is to this day owned

by my family. Considering that the average life

expectancy of a firm is about 25 years, the fact

that Jungbunzlauer, founded in 1867, is still going

strong is a remarkable achievement of which my

family is extremely proud.

The ingredients of this success are manifold.

It takes courage to invest and patience to see

the time of fruition. It takes belief and conviction to

take decisions and humility to constantly listen

and learn. It takes customers, suppliers and

financial institutions willing to accompany a

company throughout its development. Above all,

it took all the efforts of the employees. Let me

therefore use this opportunity to extend my sincere

appreciation and thanks to past and present

employees.

By now I must be one of the eldest in the Group.

Time and experience have taught me the convic-

tion that aside the fore mentioned ingredients,

quality of human interaction, ethical conduct,

generosity, taking pride in our work and, on a less

serious but equally important note, the ability to

have fun and a good laugh, are also paramount

to our long-term success.

Looking forward and bearing in mind Mark Twain’s

quote that “It is difficult to make predictions, espe-

cially about the future”, I am convinced that our

solid foundation and esprit de corps are a sound

basis for the years to come. It is my family’s

intention to continue growing Jungbunzlauer, by

investing, by innovating, by keeping up corporate

governance and making sure that Jungbunzlauer

becomes, even more than in the past, a good place

to work at. This also means that we need your

engagement and contribution to create and shape

our future.

Together we have come a long way and this gives

me all the confidence that we have the ability to

master what the future holds in stock for us.

Alexander Kahane

Chairman of the Board

3/17Introduction to Jungbunzlauer Status: April 2019

Being a "Jungbunzlauer" – Message from

Tom Knutzen, CEO

Dear colleagues

Being part of Jungbunzlauer is rewarding and a

great experience. Commitment, competencies and

dedication are key words that come into mind as

strong and admirable qualities. In more business-

oriented terms: Jungbunzlauer has understood to

develop a very strong manufacturing platform and

combine this with deep and broad customer and

market interaction. The result has been a solid,

growing and financially successful company.

But challenges lie ahead of us – as always. Not in

terms of what we produce and sell but in terms of

what it will take to continue the success – to grow

and yield a return matching our obligation towards

our owners and allowing us to invest in our company

– in people and plants.

With our vision “From nature to ingredients®”

having our fermentation technology as our core

competence we are perfectly positioned to meet

and take advantage of the future trends. And we

have broadened the product portfolio over the

years giving us ample growth opportunities. This,

combined with market closeness, has created the

results. This is indeed a strong starting point.

But we cannot rest on our prior achievements. In

a dynamic world we must meet the challenges of

more demanding customers and stiffening compe-

tition. That requires that we keep evolving as our

customers preferred supplier and stay more

efficient than our competitors. We can meet these

challenges. But it requires that we act proactively

and work together as a team. All of us at

Jungbunzlauer have to know and understand our

strategy and align ourselves with clear focus and

priorities. To unlock our potential we need to be

aware that the world outside is moving faster. And

we are determined to keep up with that speed.

Equally important to me is the question how we as

an organisation and as individuals can work better

and smarter – not just harder – together to beat

competition. It is about using our common intelli-

gence and skills to prepare for the future, to gain

the loyalty of our customers, to be more efficient

and, at the same time, embrace great leadership

and an agile corporate culture to be a workplace

attracting and retaining the best people.

This document is about our company and us.

I know we have a bright future ahead of us. We

must continue to develop ourselves building on the

strengths that have brought us to where we are

today and being open to changes in our

surroundings.

I invite you to be part of the Jungbunzlauer journey.

But remember: it only becomes really

exciting if we all engage, take ownership and

responsibility and contribute. By doing so, we will,

all of us, also gain experience, have fun and have

the sense of achievement and influence.

Let’s make it come true and shape the future

together.

Tom Knutzen

CEO


Special Salts – Specialt ies

Our aspirations – the vision

“From nature to ingredients®” defines our vision.

We transform nature’s plants into useful ingredients

and efficient solutions thereby touching upon

millions of people’s daily lives across the globe.

Xanthan - Citr ics - Gluconates - Lactics - Sweeteners

Neutral isation and Esterif ication

Renewable raw materials

Fermentation (non-GMO) and Purif ication

Based on our fermentation technology with non-

genetically modified microorganisms we use

renewable raw materials to produce biodegradable

ingredients of natural origin.

Our products enable our customers to produce

and market healthier, safer, more sustainable and/or

tastier products to consumers or industries globally.


Jungbunzlauer in facts

Our turnover is in the level of 900 mCHF created

by over 1,150 employees.

We produce the three main organic acids citric

acid, gluconic acid and lactic acid by fermentation.

Based hereon we make a wide variety of derivatives

such as mineral salts and esters. We also produce

xanthan gum a biodegradable stabiliser and a

natural zero calorie sweetener called erythritol.

Our main raw material is corn as a carbohydrate

source for the fermentation processes. All side

streams in the production are utilised or sold, so

we produce no waste making our business model

very sustainable.

Our products are produced in our four plants

located in Austria, France, Germany and Canada.

The plants are modern and of the highest standard

in all aspects reflecting an investment programme

of around 1 bnCHF from 2008 to 2018.

Jungbunzlauer is a well consolidated company

yielding a return allowing for both continuous

investments in the company and paying dividend

to our owners.


More than 150 years of history

Important milestones in our company’s history

(Find more information on our website www.jungbunzlauer.com)

1867 Spirits distillery founded in Jungbunzlau (former Bohemia)

1962 Citric acid production begins Pernhofen, Austria

1967 Acquisition by Karl Kahane

1986 Jungbunzlauer enters the xanthan gum market Pernhofen, Austria

1996 Gluconate production begins Marckolsheim, France

1998 Esters and mineral salts are added to the product portfolio Ladenburg, Germany

2002 Jungbunzlauer builds a citrics plant Port Colborne, Canada

2005 Europe’s first erythritol production Marckolsheim, France

2011 Lactic acid production begins Marckolsheim, France

2015 Acquisition of glucose plant Port Colborne, Canada

2017 Jungbunzlauer becomes 150 years and celebrates at the same time 50 years of Kahane family ownership

2018 to today Opening of Application Technology Center, Chicago, USA


Working at Jungbunzlauer

Our mind-set

How we think – and act.

The changing environment affects the way we do

business, find opportunities, engage ourselves and

act as one company. But some challenges do not

come from our competitors or from global trends.

They come from within; from the way we all act

and deal with each other.

We have grown in size and are more than 1,150

employees worldwide. So we all need to adapt as

individuals and as a global organisation.

Being both agile and aligned are keys to our

success. Therefore, we need passionate

employees as entrepreneurs with a common

understanding of Jungbunzlauer, our vision,

our strategy, our values and ambitions.

So we can work and pull in the same direction

collectively – as a team. This requires that we all

constantly aim to develop ourselves as individuals

and as an organisation.

The performance of great companies is driven by

great employees. And we are committed to keep

our organisation healthy and powerful. But great

companies also have great organisations and ways

of working together. So, as for many things in life

it is about finding the right balance between the

individual and the Group, between the processes

and the entrepreneurship and between central and

delegated decision making.

We encourage

– pro-active behaviour

– a visible and engaging leadership style

– entrepreneurship

– open and two-way communication

– collaboration across all functions and levels


by asking for forgiveness → instead of asking for permission

by leading people → instead of managing people

by allowing mistakes → instead of finger pointing or silo thinking

by listening → instead of telling

by sharing knowledge → instead of withholding to reach excellence knowledge to keep power

Developing the way a company works takes time.

And one should never lose the qualities of what

has brought a company to success. So this is

about being open, leverage what we have and strive

towards doing even better and have a rewarding

and enjoyable work life at the same time.

Having a good level of information is important for

our individual ability to do our jobs and make the

right decisions. One way of achieving this is

through our quarterly "Pulse" calls where we

cascade information about our development to

all employees. On an ongoing basis a lot of infor-

mation can be found on our intranet "myJBL".

Here you are also invited to share information,

create groups, comment information you find, etc.

"Spirit" – our employee survey – is giving us all

insights and most importantly inspires us as a

global company, as a site or as a team to find ways

through which we can improve the way we work

together and strengthen our overall engagement.

This is a programme we take very seriously and

keep working on.

And this is how we can act to find the right balance:


Our values

Values are imbedded in the culture of any organi-

sation and they develop over time. Jungbunzlauer

has strong values and they have been an essential

element of building and growing our company.

The following four value statements imbed where

we come from, what we are and how we want to

behave and position ourselves in the future:

– We are committed

– We work as a team

– We strive for excellence

– We take responsibility

Embedded in our values rests a fundamental

mind-set that acting in an ethical way as a

company towards all our stakeholders and

amongst ourselves is a given. And, if in doubt,

we ask and discuss a given topic in extra time

and choose the safe way to act.

We try to formulate the right and important policies

but not overdo it. As an example: we have not for-

mulated targets concerning diversity within the or-

ganisation but we do embrace diversity in all

aspects since we believe it broadens our outlook

and creates stronger teams.


Quality

In order to be the supplier of choice amongst our

customers we strive to set the highest standards

in terms of quality and reliability. And it is much

more than just words.

Embedded in the way we work together, the

choices we make, how we maintain and develop

our plants and engage with our customers, quality

in the broad sense of the word always has the

highest priority. It ties strongly to our values and

it influences our daily lives at Jungbunzlauer:

To do the right thing the right way with speed

but without compromise.


Our employees

Employees matter at Jungbunzlauer. We all intui -

tively know that no organisation can be successful

in the long-term without engaged and competent

people working well together and having the right

tools to get the job done. So each and every one

working at Jungbunzlauer is important. Embedded

in our history and values lie a natural respect and

appreciation of the individual. We simply care

about each other.

We aim to fulfil the aspirations of both the individ-

ual and the company by giving priority to training

and education. And we always strive to build a

long-term working relationship. So, having a work-

place that offers both security and competitive em-

ployment terms is important.

Striking the right balance between the wishes

of the individual and the requirement to create

results as a company is important. But we actually

believe that we all thrive better when being given

responsibility, tasks and objectives. And the size of

Jungbunzlauer provides exactly that. We are big

enough to be a global trendsetting player within

our industry but we still have a manageable size

providing a flat organisation, fast decisions and –

most importantly – we very often know each other

across functions and geography.

Any organisation or group of people working

together faces challenges from time to time. From

small to bigger challenges – we acknowledge that.

But we believe that by addressing them openly

and directly through a dialogue we actually provide

the best conditions to solve problems.

Finally, we pride ourselves by our professional

and competent organisation. Focused and

empowered, aligned and ambitious. A tangible result

of this is reflected by our ability to grow profitably

while constantly investing in both our people and

plants.


Our path forward – the strategy

Our strategy is to grow organically and strengthen

our position as a global market leader committed

to the industry long-term.

We therefore have the following priorities for the

coming years:

– We will continue to upgrade and expand our

four manufacturing sites – increase capacity,

improve efficiency and lower our unit cost while

building upon the existing product portfolio.

– We see Europe and North America as our main

markets while markets such as Asia/Pacific and

Latin America have focus in defined segments.

– We will develop our go-to-market model with

the aspiration to become the preferred supplier

in our key segments and markets.

– We will invest in developing our organisation

and people to become a superior partner to our

customers and a great place to work.

But our aspiration goes beyond the above

priorities. Longer term we seek to expand our

geographical footprint and market presence,

leverage our core competences within fermentation,

downstream operations and potentially broaden

our product portfolio through own means or

through partnerships. We will invest in exploring

these opportunities so that we are ready to grasp

them at the right point of time. Currently we are

giving additional focus and resources to our

pharma customers as a business segment. And

we are expanding our technology platform and

product portfolio within agglomerated, granulated

and coated solutions.

We seek superior growth and profitability while

maintaining a risk profile allowing us to withstand

possible headwinds. In this way we will always

be a reliable and trustworthy partner to all our

stakeholders.


Safety

The area of safety needs special focus and our

ambition is to strive for zero accidents within our

company.

High standards within safety are what we also

want to be known for.

It represents a direct link both to our strategy,

our value proposition to our customers and

our company values.

Safety is a collective responsibility so we must

engage at all levels on this issue in order to

improve and never lose focus on this important

topic.


Sustainability

We deeply respect people and our environment –

this attitude is naturally rooted in our history and

values. And sustainability is at the core of our

vision statement “From nature to ingredients®”.

In order to drive our progress we will continue to set

ambitious targets for reducing our environmental

footprint. Furthermore, we seek to make our

contribution to the overall society by being a good

corporate citizen and participating in a number of

global initiatives.

It is our aim through a strong sustainability focus

to support our customers and thereby ultimately

the end consumers in creating efficient, safe and

sustainable products as well as value chains.

This makes sense and gives us a meaningful

purpose while, at the same time, strengthening

our competitive edge and business proposition.

A lot has already been achieved.


Our journey - the next stage

Life is a journey. And you can say the same thing

about a business.

We as colleagues in Jungbunzlauer are on a

journey. And we are equipped with a strong

history and a solid foundation to base our future

on. For that we can be truly thankful towards

those that, in the past, have contributed to this

strength. Now we have to build further on.

Our strategy is clear and focused. And in this

context it is important to remember that strategy

is always about what you want to do, but it is

actually equally important to make it clear what

we will not do. And then stick to it.

Being close to our customers and doing our

utmost to meet or surpass their expectation is

part of our company culture. And it has become

an important factor of our competitiveness. So it

is essential we keep the customer in focus all

along the journey.

And here each individual of us plays a role. Without

satisfied and successful customers we will not

prosper and grow.

Our vision goes beyond strategic guidelines and

goals. So, while focusing on executing our current

plans we will, in parallel, spend some resources to

look outside the box in order to explore where the

core competences of Jungbunzlauer could be set

in action to create new business opportunities.

For now the direction is set. We have our owners’

confidence and support. So it is up to us to exe-

cute. Let’s seize the opportunity as a team keeping

in mind that our success will contribute to building

a more sustainable world with consumers using

safe and biodegradable products.


Karl Kahane Foundation*

As company owners we are aware that we are

not only responsible for our employees and the

company but also for the larger community, for

the environment and for our planet. The Kahane

family is pursuing this goal with our Karl Kahane

Foundation.

The Karl Kahane Foundation was established in

1991 by the late Karl Kahane as an independent,

privately-funded, non-political and non-religious

charitable foundation. The foundation works

together with various secular and religious organi-

sations, be they Jewish, Christian or Muslim. We

respect the cultural and religious backgrounds of

our partners as well as their social and political

roles. Our philosophy consists in conducting an

on-going dialogue with project initiators as well as

local experts to assess the most urgent needs.

The Karl Kahane Foundation today works with a

growing number of organisations in various fields:

Healthcare, social welfare, applied development

research and training, education, women’s rights

and living conditions in Asia, the Middle East and

Africa but also in Europe and Canada – special

needs today have no geographical focus. And we

are very pleased with the fact that we have been

able to support a number of projects having been

brought forward by employees in Jungbunzlauer.

It is an important point for us that an amount of

5 % of all dividends paid is given as a contribution

to the Karl Kahane Foundation. This enables us to

make our contribution to a more sustainable world

for everybody and since 1991 donations have

amounted 35.1 mCHF. So, with your daily work you

contribute a significant piece to the foundation’s

work and to our goals.

Thank you very much for your contribution to that

aspiration!

The Kahane Family

* The Karl Kahane Foundation is a separate and

independent body to the Jungbunzlauer Group


Documents

Introduction to Jungbunzlauer...2018 to today Opening of Application Technology Center, Chicago, USA Introduction to Jungbunzlauer Status: April 2019 7/17 Working at Jungbunzlauer