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Rieter Textile Systems Charts 2008 · Rieter Textile Systems Charts 2008 ... * Members of the Group ... Leading supplier of systems solutions and services for the textile and automotive

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Rieter Textile Systems Charts 2008

June 2008

2DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Organization

Corporate Center

Chief Financial Officer& Head Corp. Center*:Urs Leinhäuser

Automotive Systems

Divisional Chief Executive*:Wolfgang Drees

Textile Systems

Divisional Chief Executive*:Peter Gnägi

Rieter Group

Executive Chairman:Erwin Stoller

* Members of the Group Executive Committee

3DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Values and Principles

TEMPEL

4DT Standard Presentation 2008 June 2008 DTM

History

Pioneer & diversification phase

Trading of cotton

Cotton spinning mill

Production of numerous goods in addition to spinning machinery:

• Turbines• Streetcars

1795 – 1925 1925 – 1984

Rieter Machine Works Ltd. becomes a public listed company

Focus on spinningmachinery

1984 – Today

Dual strategy

Global company withactivities in:• Textile machinery• Automotive supply

Quotation of Rieter Holding Ltd.on SWX Swiss Exchange

International expansion

Leading supplier of systemssolutions and services for thetextile and automotive industries

5DT Standard Presentation 2008 June 2008 DTM

Corporate Profile

Rieter Group 2007

Rieter Textile Systems Rieter Automotive Systems

Sales (CHF) 1'567mEBIT (CHF) 201m

EBIT margin 13.1%

Spinning machinery and integrated systems for manufacturing yarns and nonwovens.

Components, modules, systems and services for acoustic and thermal managementin motor vehicles

Sales (CHF) 2'363mEBIT (CHF) 92mEBIT margin 4.0%

Leading supplier of systems solutions and services for the textile and automotive industries

Sales (CHF) 3'930m (USD: 3'275m) Net Profit (CHF) 212mEBIT (CHF) 279m Market capitalization (CHF) 1'966mEmployees (Switzerland) 15'506 (1'981) Number of shareholders ~ 8'000 Number of manufacturing plants ~70

6DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Know-how

Manufacturing and processing of fibers and plastics

Textile Systems Automotive Systems

Processing of fibers and plastics

combined withacoustic know-how

Non-wovens

Machinery, components and services for producing yarns and nonwovens

Customers of Rieter(yarn and nonwoven production)

Yarns Customers of Rieter

(automotive industry)

NaturalFibers

ManmadeFibers

Fibers Plastics

Rawmaterials

Rawmaterials

Rietercomponents

Textile & Apparel Hygiene Industrial

Processing of fibers combined with

textile technology know-how

Nonwovenfabrics andcarpets

7DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Sales Development

0

500

1'000

1'500

2'000

2'500

3'000

3'500

4'000

4'500

83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

CHF million

CAGR:11%

8DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Profitable Growth

2'200

2'9003'122

2'9453'137

2'6362'435

3'122

3'9303'580

3'086

2'643

0

500

1'000

1'500

2'000

2'500

3'000

3'500

4'000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070

50

100

150

200

250

300

350

Sales EBIT Net profit

Sales (CHF million) EBIT, Net profit (CHF million)

9DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Shares of Industrial Activities

40%39%

67%

58%

47% 45%38%

31%37% 39% 37% 39% 37%

100%

35%

60%61%65%63%61%63%61%63%69%62%55%53%42%33%

0%

20%

40%

60%

80%

100%

1984 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Textile Systems Automotive Systems

Sales 1984:300 CHF million

Sales 2007:3'930 CHF million

10DT Standard Presentation 2008 June 2008 DTM

Sales by Division

• Sales revenue at record level due to organicgrowth

• Sales of Textile increased to new record level despite divestments

• Automotive Systems grew substantially faster than overall vehicle output

2007: 3'930 million CHF

CHF million

2006 figures excluding manmade fiber activities

+12%

Textile Systems1'567

Automotive Systems

2'363

40%60%+8%

+18%

11DT Standard Presentation 2008 June 2008 DTM

Rieter Group: Sales by Geographical Region

North America20%

Africa2%

Latin America5%

Europe44%

Asia incl. Turkey31%

2007: 3'930 CHF million

Most important countries

279352

406

290302

543

0

100

200

300

400

500

600

700

USA Turkey India Germany France GreatBritain

CHF million

12DT Standard Presentation 2008 June 2008 DTM

Sales 2007: Global Presence

TextileSystems

AutomotiveSystems

Group

Previous year

Europe/Africa

in %

Asia

in %

Total

CHF million

North /LatinAmerica

in %

20%

63%

46%

9%

33%

23%

71% 1'567

4% 2'363

31% 3'930

47% 25% 28% 3'580

13DT Standard Presentation 2008 June 2008 DTM

Employees by Division

Textile Systems35%

Automotive Systems

64%

Other business activities incl. headquarters

1%

2006: 14'826

TextileSystems

35%

Automotive Systems

64%

Other business activities incl. headquarters

1%

2007: 15'506

14DT Standard Presentation 2008 June 2008 DTM

Poland4%

USA14%

Canada2%Spain

2%

Great Britain3%

Italy7%

France9%

Germany9%

Switzerland13%

Other6%

India5%

Brazil7%

China8%

CzechRepublic

11%

2007: 15'506

Employees Rieter Group: Global Presence

Other5%

Switzerland13%

Germany10%

France10%

USA15%

Czech Republic11%

China6%

Brazil6%

Italy7%

Spain2%

India5%

Poland3%

Canada3%

Great Britain4%

2006: 14'826

15DT Standard Presentation 2008 June 2008 DTM

North America16%

Latin America8%

Asia (inlc. Turkey)14%

Africa1%

Europe61%

Group

Employees Rieter: Expansion of Global Presence (1/2)

Asia (inlc. Turkey)0%

North America2%

Europe98%

2007: 15'5061993: 7'934

16DT Standard Presentation 2008 June 2008 DTM

Employees Rieter: Expansion of Global Presence (2/2)

Group

Manufacturinglocations 2007

Employees 2007

Employees 2006

7'2272'270

7'2692'006

2'696943

1'816

96

33%

67%

2'5191'204

2'197

89

37%

63%

367

126

8

1

Low-cost countries 31% 0%

High-cost countries 69% 100%

Employees 1993

Western EuropeEastern Europe

7'7360

North AmericaLatin America

1700

Asia (incl. Turkey) 28

Africa 0

17DT Standard Presentation 2008 June 2008 DTM

Automotive Systems 2007

Leading supplier of integrated acoustics systems

18DT Standard Presentation 2008 June 2008 DTM

Who is Rieter Automotive Systems?

Rieter Automotive Systems is a global partner for the vehicle manufacturers.Our systems integrate noise reduction, heat treatment and interior trim around our core competences:

Acoustics, Thermal Management and Design.

The vision of Rieter Automotive is to increase vehicle value and comfort.We are a leading supplier of complete systems and solutions to the automotive industry.

19DT Standard Presentation 2008 June 2008 DTM

Division Automotive

Chief Executive OfficerWolfgang Drees*

Finance & ControllingR. Seidel*

* Executive Committee members

Strategy, Marketing & Communications

K. Smith

Human ResourcesR. C. Blum*

Information TechnologyK.-H. Frohnhoff*

Research & TechnologyG. Seuvre*

Manufacturing System/ TQMD. Pieronczyk*

Japanese OEM Business Dev.F. Thebaud

.

GMFordChryslerBMW N. AmericaDaimler N.A.

ToyotaHondaNissanMitsubishiOther Asian

12 ProductionUnits

1 DevelopmentCenter(DEC)

Business GroupAmerica

R. Derr*Joint Ventures

Business Group SA/ME/A

M. Hirzel*

Truck EuropeTruck N.AmericaTruck S.AmericaTruck Asia

BusAgriculturalSpecial Vehicles

2 ProductionUnits

1 DevelopmentCenter(DEC)

Truck productionAlso carried out in other BusinessGroup plants

Business GroupAsia

U. Trautmann*

Business Group Truck Worldwide

P. Lardini*

South AmericaBrazilArgentina

Middle East/RussiaTurkeyRussia

AfricaSouth Africa

7 ProductionUnits

1 Development Center (DEC)

Business GroupEurope

C. Faeh*

French OEMs

Asian OEMs

Fiat

US OEMs

BMWDaimlerPorsche

Volkswagen

25 ProductionUnits

1 DevelopmentCenter (DEC)at 3 locations

North AmericaUGN Inc.

AsiaRNAPTRN (China)RNG (China)SRN (Thailand)

Rieter DKKorea

Special Units

I.DE.A

Tooling CZ

Western OEM transplants

Korean OEMs

Chinese OEMs

Indian OEMs

Japanese OEM transplants

5 Production Units

1 Development Center (DEC)

20DT Standard Presentation 2008 June 2008 DTM

2,363 million CHF

Volkswagen4%

Fiat8%

GM10%

Volvo5%

Tata2%

Ford6%

Others4%

Honda7%

Toyota7%

PSA8%

Nissan5%

Renault6%

Truck10%

BMW10%

Daimler3%

Chrysler5%

11%

Sales 2007 per Customer – Light Vehicles

21DT Standard Presentation 2008 June 2008 DTM

Sales 2007 per Customer - Trucks

Rieter produces modules and products for:

• Buses• Agricultural tractors

and other industrial vehicles

• Heavy trucks• Vans

239 million CHF

Daimler3%

Scania10% MAN

7%

Paccar1%

Agriculture7%

Other Trucks5%

Iveco, Fiat27%

Volvo, Mack, Renault

40%

22DT Standard Presentation 2008 June 2008 DTM

14%

25%

1%10%

4%-3% 1% 6%

3%7%

8%

0

250

500

750

1'000

1'250

1'500

1'750

2'000

2'250

2'500

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

CHF million

Automotive Systems: Sales Development 1997 - 2007

CAGR: 5.0%

23DT Standard Presentation 2008 June 2008 DTM

Acoustics Integrator – Core Competences

All these competences are driven by comfort, cost and competitiveness

We develop, design, test and produce vehicle components and integrate all parts into multi-functional systems and modules tailored to each vehicle.

We develop products and solutions for thermal protection areas and experimental and numerical simulation methodologies forthermal comfort.

Using our styling, modelingand product and processengineering expertise we develop solutions for interior trim products.

ACOUSTICS DESIGNTHERMAL

24DT Standard Presentation 2008 June 2008 DTM

USAAiken, South CarolinaBloomsburg, PennsylvaniaFarmington Hills, MichiganLowell, IndianaOregon, OhioShreveport, LouisianaSt. Joseph, MichiganChicago Heights, Illinois (UGN)Jackson, Tennessee (UGN)Somerset, Kentucky (UGN)Tinley Park, Illinois (UGN)Valparaiso, Indiana (UGN)

ArgentinaCórdobaBuenos Aires

TurkeyBursa (Rieter Erkurt)Bursa

CanadaLondon, OntarioTillsonburg, Ontario

BrazilBetimGravataíSão Bernardo do CampoTaubaté

ItalyDesioLeiniMarcianisePignataroSanthiàTorinoVicolungo

FranceAubergenvilleBlainvilleDieppeLa Chapelle-aux-PotsMoissacOns-en-BrayRémy

GermanyBebraBöblingenCologneIngolstadtMunichRossdorf-GundernhausenWolfsburg

Czech RepublicChocenHnátniceKosmonosy

PolandKatowiceNowogard

SwedenGöteborg

Rieter AutomotiveJoint VenturesLicencees

ChinaChongqingShanghaiGuangzhou (RNG)Tianjin (TRN) Fuzhou

JapanAichiHigashi KyushuHiratsukaHiroshimaKita-ku, TokyoNikko KogyoShizuoka

Global Presence – Worldwide Locations

ThailandChonburi (SRN)Samutprakarn

AustraliaCampbellfield

MalaysiaShah Alam

IndiaNew Delhi

TaiwanTao Yuan Hsien

South AfricaRosslyn (Rieter Feltex)Durban

SpainA RuaSant Vincenç de CastelletTerrassaValldoreix

PortugalSetúbal

RussiaTogliatti

BelgiumGenk

Great BritainHalesowenHeckmondwikeStoke-on-Trent

SwitzerlandWinterthur (HQ)Sevelen

KoreaIncheon (Rieter DK)

25DT Standard Presentation 2008 June 2008 DTM

Broad Customer Base

26DT Standard Presentation 2008 June 2008 DTM

RIETER ULTRA LIGHTTM

Until 1999: INSULATION

NOISE ABSORPTION

From heavy insulation to lightweight absorption

The major concept elements are:• Optimal balance between damping, insulation &

absorption• Replace insulation with absorption

Optimized use of heavy layerUtilise lightweight porous materials

• Use of lightweight damping composites• Make use of multifunctional parts

Acoustic headliners, acoustic heat shields, acoustic underbody shields, …

• Place acoustics treatment near sourcesEngine encapsulation, wheelhouse outer liner, engine

top cover, heat shields, ...

• RIETER ULTRA LIGHTTM received the PACE Award

27DT Standard Presentation 2008 June 2008 DTM

Overview of Our Product Range

Engine Bay

• Engine Covers

• Hoodliners

• Outer Dashes

• Water Box Shields

Interior Trim

• Headliners

• Parcel Shelves

• Other Interior Trim Parts

Interior Floor

• Inner Dashes

• Non-woven Carpets

• Tufted Carpets

• Other Flooring

• Floor Insulators

• Floor Mats

• Spacers/ Crash Pads

Trunk

• Trunk Side Trims

• Trunk Flooring

• Other Trunk Trim Parts

• Spacers

Underbody

• Underbody Shields

• Floor Pans

• Heat Shields

• Wheelhouse Outer Liners

Cross Vehicle

• Dampers/ Stiffeners

• Sealants

• Other Acoustic Parts

Product Line – Part Family

28DT Standard Presentation 2008 June 2008 DTM

Interior Trim

• Headliners

• Side / Rear Panels

Interior Floor

• Floor Mats

• Inner Dashes

• Dampers / Stiffeners

• Spacers / Crash Pads

• Sealants

• Other Acoustic Parts

Modules

• Upper Storages

• Roof Systems

• Integrated Walls

• Lower Bunks

Engine Compartment

• Engine Covers

• Under-Cabin Treatments / Outer Dashes / Hoodliners

• Exterior NoiseShields

• Engine-mounted

Shields / Heat Shields

Product Line – Part Family

Overview of Our Product Range – Heavy Trucks

29DT Standard Presentation 2008 June 2008 DTM

ECO-EFFICIENT plants

To achieve superior production procedures

Worldwide deployment of ISO 14001 for • environmentally secure and safe

operations • excellent manufacturing standards

Already certified: 66% of Rieter plantsBy end 2008: over 80% reached

Objectives:• Account for yearly waste reduction• Strong employee involvement• Certification status exceeding 90%

30DT Standard Presentation 2008 June 2008 DTM

ECO-EFFICIENT technologies

Rieter develops technologies:• With reduced energy consumption

e.g. Long Fibre Thermoplastic as a replacement for Glass Mat reinforced Thermoplastic

• Allowing use of secondary raw material (recycled or waste)e.g. recycled cotton in our felts

• Improving recycling procedurese.g. Recycling of heavy layer and felt bilaminates

• Generating less waste – Promote Zero Waste Technologiese.g. Vertical Press Molding for the processing of heavy layers

Eco-efficient technologies used in Rieter plants for eco-efficient products

31DT Standard Presentation 2008 June 2008 DTM

ECO-EFFICIENT products

Service Life

Production

End of Life

Raw material

Eco-efficient products are products with reduced environmental impact along the whole life cycle

Research & Development programs integrate•eco-materials•weight reduction at final products•interior and exterior noise reduction•aerodynamic improvements at the vehicles by underbodies

•easier ELV disposal

It is Rieter’s objective to generate long-term added value for the OEM and the consumer

To generate long-term added value for the OEM and the consumer

32DT Standard Presentation 2008 June 2008 DTM

Global Presence - Technical Centers

USA, Farmington Hills, MichiganAcoustics LaboratoryDevelopment Center

USA, Chicago Heights, IllinoisDevelopment Center

Brazil, São Bernardo do CampoAcoustics LaboratoryDevelopment Center

Italy, DesioAcoustics Laboratory TrucksDevelopment Center Trucks

Italy, LeiniDevelopment Center

Italy, SanthiàAcoustics Laboratory

Switzerland, Winterthur (HQ)Acoustics LaboratoryCenters of Excellence (Vehicle Acoustics, Thermal Management, Products/Materials/Processes, Benchmarking)

Switzerland, SevelenDevelopment Center

France, AubergenvilleAcoustics LaboratoryDevelopment Center

Japan, Kita-ku, TokyoAcoustics Laboratory(Nittoku)

Germany, CologneAcoustics Laboratory

Germany, Rossdorf-GundernhausenAcoustics Laboratory

Acoustics Laboratories, Centers of Excellence, Development Centers

China, ShanghaiAcoustics LaboratoryDevelopment Center

33DT Standard Presentation 2008 June 2008 DTM

Textile Systems 2007

Leading systems supplier in the spinning process

34DT Standard Presentation 2008 June 2008 DTM

Systems supply of machines, parts and services to produce…

Textile Systems

Spun yarn Nonwovens

35DT Standard Presentation 2008 June 2008 DTM

Strategy Textile Systems

Current situation

• Textile industry with major share of capacity in Asia; consolidation of European OEMs almost completed

• Market and technology leader for staple fiber machines and systems as well as associated technology components

• Well represented in nonwovens market with a promising future• Worldwide presence with sales and service• Production expanded in low-cost countries (India, China, Czech Republic)• Market development: short-term volatility but medium- and long-term growth

thanks to increased wealth in the populous countries of Asia• Cyclicity of business well managed in the past

36DT Standard Presentation 2008 June 2008 DTM

Strategic Steps Textile Systems (1/4)

Strengthening of leading market position in staple fibers throughinnovationsFocus of innovations:

• Reinforce the market position of our customers• New yarn properties• Machines and systems with lower operating costs as well as lower material and

energy consumption• Machines and systems with higher productivity

Drawframe RSB-D 40 Drafting systemDesign engineers drawframe

37DT Standard Presentation 2008 June 2008 DTM

Strategic Steps Textile Systems (2/4)

Expansion of presence in Asia

• Expansion of production capacities and market presence in India

• Expansion of production capacities and market presence in China

Employee Changzhou, ChinaExtension of site Wing, Pune/Indien

38DT Standard Presentation 2008 June 2008 DTM

Strategic Steps Textile Systems (3/4)

Strengthening of market position for technology components

• Organic growth through innovation and tapping of new customer categories• Acquisition of Berkol; almost all technology components exist under one umbrella• Common market appearance of the different technology brands

Gretener

39DT Standard Presentation 2008 June 2008 DTM

Strategic Steps Textile Systems (4/4)

Strengthening of the nonwovens machinery business

• For the first time a high-output Spunlace line for manufacturing carded nonwovens came into operation in India

• Sales growth thanks to co-operation with NSC

Presentation of Rieter and NSC at the ITMA in Munich

40DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Commitment for the future

Customer needs and cost/price reductions are in the focus

Machines for ...

Parts

Innovation

Sales / Service Hub Europefor Rest of World

Hub ChinaHub India

Premium Producer Mass Manufacturers

Key Technology PartsCost Advantage Parts(high volume, automation)

Cost Advantage Parts(high labor content)

Research and Development Local Adaptations

Basically made inEurope

Basically made inAsia

41DT Standard Presentation 2008 June 2008 DTM

Masterplan, Masterplan EUP. Schulz

Chief ExecutivePeter Gnägi

Textile Systems: Organization

MarketingE. Walraf

Finance & ControllingP. Müller

Human ResourcesP. Willimann

Production, Safety and QualityE. Eicher

Chief Executive OfficerP. Gnägi

Technology Components & ConversionsW. Strasser

BräckerA. Krahn

NovibraA. Krahn

ManufacturingServices

E. Eicher

SchaltagE. Hartmann

ProtechT. Hägi

BlechtechCh. Walker

ComponentsJ. Appeltauer

BO-SystemsJ. Schilbach

Effective 01.06.08

Spun Yarn Systems

M. Folini

RotorA. Stampfer

F & CCh. Flüge

MarketingH. Eberli

SalesR. Thom

TechnologyH. Schwippl

Carding, CombingRing spinning

K. Schneeberger

PartsK. Frei

Spindelfabrik Suessen

E. Casanova

WSTG. Stahlecker

RieterTextile Systems

ChinaS. Föhn

GrafW. Grob

F & CT. Spitzers

MarketingR. Naef

SalesS. Hutter

OperationsS. Sonderegger

PartsS. Hasenfratz

ServiceB. Zhao

Human ResourcesT. Li

RieterTextile Systems

IndiaM. Enderle

Human ResourcesS. Tahilramani

SYS SupportA.J. Vats

NW Sales a.i. T. Gulati

Plants B. Meienberger

Shared ServicesA.J. Vats

ServiceJ. Bischofberger

DrawframeH. Szczepanek

NonwovensD. Vulliet

MarketingP. Deka

F & CA. Sultan

Human ResourcesP. Willimann

F & CD. Gambon

F & CP. von Gunten

MarketingR. Labus

Human ResourcesP. Willimann

R&DV. Jehle

ACHAG. Yang

42DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Sales 2007

• Sales adjusted for divestiture increased by18% to new record level

• 71% of sales (previousyear 67%) were generatedin Asia (incl. Turkey)

• The most important markets were Turkey, India and China

2003-2006 adjusted for divestiture

955996

1'567

1'322

1'040

0

200

400

600

800

1'000

1'200

1'400

1'600

2003 2004 2005 2006 2007

CHF million

43DT Standard Presentation 2008 June 2008 DTM

0

200

400

600

800

1'000

1'200

1'400

1'600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

CHF million

–12%

+14%

–16%

–24%

+42%

+14%

–10% +11% –5%

+29%

+12%

–6%

Textile Systems: Sales Development 1996 - 2007

44DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Orders Received

• 2007 orders receivedadjusted for divestiture rose by 6% to new record level

• Strong demand from Turkey, India and China

• As expected, the demand eased in HY2 2007

2003-2006 adjusted for divestiture

1'7031'614

1'047941926

0

250

500

750

1'000

1'250

1'500

1'750

2'000

2003 2004 2005 2006 2007

CHF million

45DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Orders Received by Semester

0

200

400

600

800

1'000

HY12004

HY22004

HY12005

HY22005

HY12006

HY22006

HY12007

HY22007

CHF million

533618

905

709

408 429

1'084

619

Ø 600• 2007 order intake with

1'703 million CHF on new record level

• Slow-down in HY2 as expected

• HY2 order intake above half-year average 2004 to 2006

• Strong demand from Turkey, India and China

(2004-2006 figures excl. manmade fiber activities)

46DT Standard Presentation 2008 June 2008 DTM

0

200

400

600

800

1'000

1'200

1'400

1'600

1'800

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

CHF million

+6%

–25%

+74% –14%

+19% –5%

–8%

–16%

+1% +8%

+46% –1%

Textile Systems: Orders Received 1996 - 2007

47DT Standard Presentation 2008 June 2008 DTM

Textile Systems: EBIT 2007

• Striking rise in operating result to 200.7 million CHF

• EBIT margin rose to very good 13.1%

• Reasons: Strong sales volume, attractive product offering and cost discipline

CO = Corporate Output

200.7

92.774.7

114.1122.7

0

30

60

90

120

150

180

210

2003 2004 2005 2006 2007

CHF million

10.7%CO

10.4%CO

7.1%CO

7.0%CO

13.1%CO

1 after special charges of 55.5 million CHF

1

48DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Sales by Markets

Asia67%

Europe17%

Africa5%

Latin America6%

North America5%

2006: 1'322 million CHF

889

224

66 68

75

+18%

Asia71%

Europe16%

Africa4%

Latin America6%North America

3%

2007: 1'567 million CHF

1'115

251

6549 87

(previous year adjusted for divestiture)

49DT Standard Presentation 2008 June 2008 DTM

Market: Shipments of Staple Fiber Machinery

Source: ITMF - International Textile Machinery Shipment Statistics 1980-2007

in 1'000 ITMF spindle equivalents

0

2'000

4'000

6'000

8'000

10'000

12'000

14'000

16'000

18'000

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Chinese producers included since 2000

50DT Standard Presentation 2008 June 2008 DTM

Source: ITMF - International Textile Machinery Shipment Statistics 2006*2007

13'270'000

Market by Region: Short Staple Spindle Shipment

180'000 400'000

North & South America

Europe & Africa

Asia & Pacific (incl. Turkey) 20072006

156'344 315'540

15'680'002In spindle equivalents

Asia dominates the short staple yarn machinery market

51DT Standard Presentation 2008 June 2008 DTM

Market by Region: Nonwovens Production

Nonwovens market is spread globally

Source: EDANA , INDA and APER estimation

1'290 1'333

1'490 1'832

313 327

817 904

1'188 1'048

North America

Europe China Japan Others

20072006

1'000 tons

52DT Standard Presentation 2008 June 2008 DTM

World Fibers Consumption

Cotton and synthetic staple fibers cover more than 50% of the fiber use

World fibers production in 1’000 tons

Source: PCI Fibres & Raw Materials

20'000

40'000

60'000

80'000

100'000

120'000

1990 2000 2010 2020

Other filament

Polyester filamentOther man-made staple

Polyester Staple

Cotton

Wool

53DT Standard Presentation 2008 June 2008 DTM

World Fibers Textile Mill Consumption

Source: PCI Fibers & Raw Materials

2005 2020

China 41%

9%

4%

46%

100%

India

48%

10%

4%

38%Rest of the world

Total

Turkey

100%

Development of the world fibers textile mill consumptionin the most important markets

54DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Sales and Production Sites

USA (2)

Brazil (1)

Taiwan (1)

Italy (3)

Switzerland (6)Germany (5)

Czech Rep. (3)

Turkey (1)India (5)

China (7)

France (3)

Mexico (1)

Thailand (1)

Netherlands (1)

Greece (2)

Spain (1)

Belgium (1)

Number of locations percountry in brackets Total: 44 Locations

55DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Three Areas of Innovation

Spun Yarn Systems Nonwoven SystemsTechnology Components

56DT Standard Presentation 2008 June 2008 DTM

Spun Yarn Systems (1/4)

Spinning systems from bale to yarn

RotorSpinning

RingSpinning

Blow Room &Card

SpinningPreparation

57DT Standard Presentation 2008 June 2008 DTM

Spun Yarn Systems (2/4)

Complete range of spinning systems for best customized solutions

Automated rotor spinningConventional ring spinning

Semi-automated rotor spinningCompact spinning

58DT Standard Presentation 2008 June 2008 DTM

Spun Yarn Systems (3/4)

Complete systems for yarns from synthetic short fibers and blends

Raw material blending Draw frame blending

Opening and blending of

cotton

Opening of synthetic fibers

Mixing / Dosing

Carding

Drawing

Spinning

Opening and blending of cotton

Opening of synthetic fibers

Spinning

Drawing

Draw frame blending

Carding Carding

59DT Standard Presentation 2008 June 2008 DTM

ComfoRo

Trouble freedownstreamprocessing

COM4

Excellent yarn properties

Spun Yarn Systems (4/4)

Competitive advantage with innovation in yarn

Ring yarn Rotor yarn

60DT Standard Presentation 2008 June 2008 DTM

Nonwovens (1/2)

All important nonwovens technologies from one hand

Spunlace

Spunbond MeltblownSpunJet

61DT Standard Presentation 2008 June 2008 DTM

Nonwovens (2/2)

Applications in all technologies

Spunbond Polyester

Spunlace Viscose

Meltblown Polypropylene

• Wipes• Medical / Surgical• Cotton pads• Coating Substrates

• Filtration• Face masks• Hygiene• Absorbent wipes

• Medical / Surgical• Hygiene• Agriculture• Bedding

62DT Standard Presentation 2008 June 2008 DTM

Nonwovens: Innovation SPUNjet

Short nonwoven process with soft nonwoven qualities

Pellets

Extrusion / Spinning

Staple fibers

Opening blending

Web forming

Transport of bales

Nonwovens

Spunbond process

Web forming Web forming

Nonwovens

SPUNjet process

Pellets Pellets

Hydroentanglement

Extrusion / Spinning Extrusion /Spinning

Thermobonding

Nonwovens

Hydroentanglement

Spunlace process

direct direct

hard softsoft

63DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Technology components for Ring Spinning

Ring spindles, top and bottom rollers

EliTe® and HP Systems, OE com-ponenets and parts

Technology components for spinning preparation

64DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Graf in Rapperswil (CH)

Main products:• Card clothing• Card servicing• Combs• Other related products

65DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Bräcker, Pfäffikon (CH)

Main products: Rings, travellers, cots andAprons (Berkol)• More than 20 Mio rings in operation• Ring travellers in steel and nylon• Premium supplier for all ring spinning

machine manufacturers

66DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Bräcker Wintzenheim (F)

Main products: • Plastic injection for tubes • Nylon travellers

67DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Novibra, Boskovice (CZ)

Main products:• Spindles for short and long staple spinning• Spindle Inserts ( Inside)• Components for ring spinning machines

68DT Standard Presentation 2008 June 2008 DTM

Technology Components and Conversions

Spindelfabrik SUESSEN (DE)

Main Products:• SpinBoxes for OEMs • Premium Parts – OE-modernizations, spinning

components and spare parts for Autocoro rotor spinning machines

• HP-Drafting Systems for short and long staple ring spinning machines and roving frames

• EliTe®Compact Spinning Systems -EliTe®CompactSet, EliTwist®, EliCore®, EliCoreTwist®

• Core yarn systems for ring spinning machines

69DT Standard Presentation 2008 June 2008 DTM

BlechTechWinterthur

ProTechWinterthur

BO-SystemsIngolstadt

ComponentsZamberk

SchaltagEffretikon

Manufacturing Services

System supply for internal and external customers

70DT Standard Presentation 2008 June 2008 DTM

System Supply - More than products

Textile Systems – Services (1)

Services frompresales toafter sales

Technologysupport

Managementsupport

71DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Services (2)

Services from pre sales to after sales

• Training

• Installation

• Parts Service

• Maintenance

• Repair

• Grinding Services for Pelletizing Systems

• Services for motorized spindles

72DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Services (3)

Technology centers for best customer support

Usti / CZ

Changzhou / CN

Ingolstadt / DEWinterthur / CH

South Pacific Visc./ ID

Montbonnot / FR

Reliance / INCotton Inc. US

73DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Partners in Innovation (1)

Leading institutes cooperate in research and development to accelerate innovation

PL / Lodz

DE / ITV

CZ / VUTS

CH / ETHZ

Institut für Textiltechnik

DE / ITA

CH / EMPA

74DT Standard Presentation 2008 June 2008 DTM

Textile Systems: Partners in Innovation (2)

Leading suppliers and institutes cooperate with Rieter to increase customer benefit

No 1 together with Rieter

Systems supply in nonwovens

No 1 in cotton research and marketing

No 1 in polyester production

No 1 in Viscose productionInnovation in polyester

75DT Standard Presentation 2008 June 2008 DTM

Fabricproduction

Rawmaterial

Yarnproduction

Trade End use

Rieter Textile Systems

Knowledge along the entire value chain

Research & Development

Know-How