New 950 million euro turnover record

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1 ENGEL increases its market shares around the world New 950 million euro turnover record Schwertberg, Austria June ENGEL set a new record in the 2012/2013 financial year by achieving a global turnover of 950 million euros. This represents a 14% increase for the Group based in Schwertberg, Austria, in comparison to the previous year and an overall increase of 165% since 2009/2010. ENGEL also expects further growth of about 5% each year for the next three years. "Our aim is to be the best at creating customer benefit," Dr Peter Neumann, CEO of ENGEL Holding, stresses to international specialist press representatives in the run-up to K He adds: "Being near to our customers is the key to this. On one hand this means increasing our global production capacity and expanding our sales and service structures continuously, and on the other hand it means consistently aligning our products and technologies to the individual requirements of country-specific markets and target sectors. The very positive developments over the last few years confirm that we are definitely on the right track with this strategy, and we are keen to continue in our current direction." ENGEL was able to increase its market shares all over the world, and its strong commitment levels in Asia played a major role here. In the relevant Asian market (European and Japanese technology), ENGEL now has a market share of 10%, in America, its market share is 18%, and in Europe the company has managed to increase this figure from 27% to 30% in just three years. Energy efficiency, system deals, and industry-specific solutions result in growth Technologically, energy-optimised machine concepts, integrated and automated system solutions, and industry-specific developments are contributing to this growth more than anything else. Thanks to its servo-hydraulic system, ecodrive, for example, ENGEL was able to significantly increase its market shares in the very competitive market segment of medium- 1

2 sized injection moulding machines alone in 2012/2013. More than half of all ENGEL's hydraulic machines are now equipped with ecodrive. As far as its target industries are concerned, ENGEL has seen the greatest growth in the automotive and packaging sectors. ENGEL's packaging market share is now over 20%. Christian Pum, ENGEL Holding's Sales Director, says: "We're seeing strong growth in the area of plastic packaging at the moment, and the benefit we're deriving from this is disproportionately high. In Europe, about 12% of all our injection moulding machines are currently sold to customers in the packaging industry. More and more large machines which work with moulds with high numbers of cavities are being sold here. These tend to be used as part of high-output solutions and employ energy-efficient drive concepts." The proportion of system solutions with automation included is rising across all industries, and ENGEL is benefiting from this trend considerably as well. About 50% of all automated manufacturing cells supplied by European injection moulding machine manufacturers are made by ENGEL, meaning ENGEL is now the world's leading provider of automated injection moulding processes. The main driving force behind this focus on innovation is Germany, which has a particularly high degree of automation and process integration. Automation is becoming more and more important throughout the world, however. The demand for automated system solutions is becoming greater in China, for example and ENGEL is one of the most popular suppliers there as well. Dr Stefan Engleder, ENGEL Holding's Technology Director, says, "In injection moulding markets around the world, ENGEL is seen as a stable family-owned company who is application-oriented and innovative, and who is always expanding its range of system solutions." Germany the most important market, South Asia growing rapidly Approximately 20% of ENGEL's global turnover is generated by its German branches, making Germany the most important country-specific market for the machine builder. In terms of sales volume, Germany is followed by Turkey and Russia, which currently occupy 2

3 second and third places in Europe. Overall, 65% of the company's turnover is generated by Europe, while the American and Asian markets are responsible for 17 and 18% of the total turnover respectively. Very positive progress was made in the North American market in the 2012/2013 financial year, where the medical and packaging industries have been adding new impetus. In Mexico, investments in the international car industry have aided growth more than anything else. The most important market in either of the American continents is Brazil, with sales volumes having increased continuously over the last few years. All in all, ENGEL was able to make a disproportionately large contribution to American growth in the last financial year. In Asia, ENGEL generated a turnover of 145 million euros in 2012/2013 which was also a new record. The largest share of this amount was produced in China, which is the world's biggest market for injection moulding machines. Although the total sales volume actually decreased in China last year, the high-tech segment grew again, and China will continue to be the most important market in Asia in future. "The market for simple low-tech machines is shrinking in China, while the demand for sophisticated high-tech injection moulding solutions is growing," explains Mr Pum. "There was never a break in the demand for European high technology, and we expect to be able to increase our turnover in China further." The markets in Southeast Asia are expanding at a particularly rapid rate, especially those in Thailand and Indonesia. Overall, ENGEL has been able to triple its turnover in Southeast Asia in the last two years, and despite a relatively weak 2012/2013, ENGEL is expecting sales to increase in India too during the next few years. Continuous investments lay foundation for further growth ENGEL has been able to cope with the higher numbers of incoming orders across the world by continuously increasing its production capacity and adding to its sales structures. Altogether, the company invested more than 57 million euros in different sites in the 2012/2013 financial year. The lion's share of this money (40 million euros) remained in 3

4 Austria and was used to expand the main factory in Schwertberg, enlarge and modernise its large-scale machine plant in St. Valentin, and introduce line assembly at its robot factory in Dietach. The biggest investments outside of Austria were the massive expansion of the two production plants in Asia. The production capacity at both the large-scale machine plant in Shanghai and the plant for small and medium-sized machines in Pyeongtaek City, South Korea, was doubled, while the sales structure in China was also reinforced. ENGEL is the only western injection moulding machine manufacturer with two production plants in Asia, and three quarters of the company's Asian turnover now stems from local production. On 1 st April 2013, ENGEL opened a new subsidiary in Bangkok to enable it cope with the growing demands in Southeast Asia even more efficiently than before. Two investments in Germany are also of great strategic importance. The Hagen site, which is where ENGEL Automatisierungstechnik Deutschland is based, had assembly space and offices for new employees added to it at the beginning of the summer in 2012, and in the spring of 2013 a fourth German branch, ENGEL Deutschland Technologieforum Stuttgart, was opened. Other branches, including locations in Turkey, Russia, and Mexico among others, were strengthened by the addition of more staff in the 2012/2013 financial year, while the number of employees in Austria was also increased. ENGEL currently has a global workforce of more than 4300 employees. Since it was founded in 1945, ENGEL has been 100 percent family-owned and independent of external investors. This has guaranteed stability and a long-term perspective for customers, partners, and employees. With Dr Peter Neumann as CEO and Dr Stefan Engleder as CTO, there are two family members in the management team with operative responsibility. This is now the fourth generation of the family that owns the company to be involved in its running, which is excellent for coupling tradition with innovation. 4

5 The management team of ENGEL Holding GmbH from left to right: Stefan Engleder (CTO), Gotthard Mayringer (CFO), Peter Neumann (CEO), and Christian Pum (CSO). "The very positive developments over the last few years confirm that we are definitely on the right track with our strategy, and we are keen to continue in our current direction." Dr Peter Neumann, CEO "There was never a break in the demand for European high technology in Asia and we expect to be able to increase our turnover in China further too." Christian Pum, CSO "In injection moulding markets around the world, ENGEL is seen as a stable family-owned company who is application-oriented and innovative, and who is always expanding its range of system solutions." Dr Stefan Engleder, CTO 5

6 ENGEL invested 23 million euros in expanding its headquarters in Schwertberg in the 2012/2013 financial year, and further building work is expected to take place at the site. Synchronised production has been used at the robot factory in Dietach since the autumn of Introducing line assembly has reduced delivery times. The capacity at the two Asian production plants in Shanghai (left) and South Korea (right) has been doubled. 6

7 In the spring of 2013, ENGEL opened its fourth branch in Germany near Stuttgart. At 700m 2, ENGEL Deutschland Technologieforum Stuttgart has the largest technical centre among all ENGEL's branches. Photos: ENGEL ENGEL AUSTRIA GmbH ENGEL is one of the global leaders in the manufacture of plastics processing machines. Today, the ENGEL Group offers a full range of technology modules for plastics processing as a single source supplier: Injection moulding machines for thermoplastics and elastomers, and automation, with the assurance that individual components are also competitive and successful in the world markets. With eight production plants in Europe, North America and Asia (China, Korea), subsidiaries and representatives in over 85 countries, ENGEL offers its customers the optimal global support they need to compete and succeed with new technologies and leading-edge production systems. Contact for journalists: Gerd Liebig, Group Marketing Director, ENGEL AUSTRIA GmbH, Ludwig-Engel-Strasse 1, A-4311 Schwertberg, Austria, Tel.: +43 (0) , fax: -3009, gerd.liebig@engel.at Susanne Zinckgraf, Manager Public Relations, ENGEL AUSTRIA GmbH, Ludwig-Engel-Strasse 1, A-4311 Schwertberg, Austria PR Office: Theodor-Heuss-Strasse 85, D Neustadt, Germany, Tel.: +49 (0) , fax: -03, susanne.zinckgraf@engel.at Contact for readers: ENGEL AUSTRIA GmbH, Ludwig-Engel-Strasse 1, A-4311 Schwertberg, Austria, Tel.: +43 (0) , fax: -3009, sales@engel.at, 7

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