Together we move the world

As a family business, we realize that we have a responsibility to keep moving forward in a world which is developing at a faster and faster rate and in which the half-life of forecasts is becoming increasingly shorter. As the Schaeffler Group, we must be competitive and work together to achieve our goals. We have worked hard to get to the top; and INA, FAG and LuK have grown together to form the Schaeffler Group. We are committed to succeeding, to ensuring sustainability in our actions and to being passionate about our company: Together we move the world. Maria-Elisabeth Schaeffler Partner We promote the expertise of our employees and rely on targeted investments in research and development. We base our decisions on customers expectations. Our customers demand proximity in growing and newly-developing markets. Technical and business expertise as well as the dedication of our excellent employees has always been a basis for our success, as have been our regional ties that have never lost sight of the global picture. Lic. oec. HSG Georg F. W. Schaeffler JD/LLM Partner MATNR 027275337-0000 / SIB / US-D / 2009056 / Printed in Germany by Hofmann Druck Schaeffler Group Industriestrasse 1 3 91074 Herzogenaurach Germany E-mail: info@schaeffler.com Together we move the world Not only has our development been characterized by responsible management and consistent company development, we have also actively designed the connection between the company s history and corporate culture. We cultivate exceptional commitment, mutual trust and reliability, which have resulted in powerful and sustainable results. In the spirit of a family business, the partners and management of the Schaeffler Group see it as their task to continue to develop the company responsibly and successfully. Dr. Juergen M. Geissinger President and CEO

The Schaeffler Group has manufacturing plants, engineering offices and sales companies at more than 180 locations worldwide. Together we move the world so you can move the world. The Schaeffler Group is managed as an integrated unit across corporate and national boundaries. Group-wide functions and standardized processes ensure consistent, quick decisions. Sales agencies and companies in all markets guarantee proximity to customers. A closely-linked network of manufacturing locations ensures customer focus and high delivery reliability, for instance for just-in-time deliveries all over the world. Automotive Industrial Aerospace Schaeffler Regions Europe > North America > South America > Asia Pacific > Eastern Europe/ Middle East > < Corporate Units < Business Units < Operations For more information, please visit our websites.

As a reliable partner for our customers, we count on innovation, creativity and consistent customer focus as well as on top performance in all areas. In the process, we strive for balanced growth between the industrial, distribution and automotive sectors to achieve leading positions for all our products in the important market regions worldwide. Target orientation, constructive teamwork and the continuous improvement of processes and products characterize the operations of the Schaeffler Group. 1

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Together we move the world...so you can move the world. The Schaeffler Group develops and manufactures precision products for everything that moves in machines, equipment and vehicles as well as in aviation and aerospace applications. We provide our customers with individual solutions to help them move the world. Schaeffler bearings ensure smooth and safe operation in London s famous Ferris wheel, the London Eye. 3

Automotive Industrial Aerospace

The Schaeffler Group The Schaeffler Group is a leading manufacturer of rolling bearings and linear products worldwide as well as a renowned supplier to the automotive Automotive industry. The Group s success is based on great innovative force, proximity to the customer on a global scale, the highest possible quality in all Industrial processes and its ability to react quickly to customers special requirements. With its three strong brands INA, FAG and LuK the Schaeffler Group is active in the Automotive, Industrial, and Aerospace divisions. The utilization Aerospace of central group-wide functions has resulted in a large number of synergies. The Group s strong customer focus has been an essential part of its success. The Schaeffler Group sees itself as a development and engineering partner for its customers and has developed technologies, machines and control systems in-house to achieve fast and flexible manufacturing processes. The Schaeffler Group s largest customer, the automotive industry, generates more than 60 % of all sales. For nearly all manufacturers and major suppliers, the Schaeffler Group is a reliable expert partner for the supply of the entire drive train: for engines, chassis, transmissions and accessory units in passenger cars and commercial vehicles. The Industrial division supplies more than 40,000 volume-produced catalog products that cover applications in more than 60 industrial sectors an exceptionally wide product range. In close cooperation with our customers, we develop solutions that are perfectly matched to individual requirements and offer the highest benefit. Small but powerful: our Aerospace division. Together with its subsidiary, the Barden Corporation, FAG is a leading manufacturer of high-precision bearings for aircraft and helicopter engines and for aerospace applications worldwide. In all three divisions, we provide support to our customers on their way into the future. Together we move the world. Main brands and divisions of the Schaeffler Group Automotive Engine Systems Transmission Systems Chassis Systems Automotive Aftermarket Industrial Heavy Industries Power Transmission Wind Power Railway Production Machinery Consumer Products Industrial Aftermarket Aerospace Aerospace Aircraft, Helicopters Special Applications 5

6 When it comes to modern manufacturing methods such as cold forming through deep drawing, INA pushes the limits of what is technically feasible. This particularly efficient method combines very high precision with the profitability of volume production.

Schaeffler Group Brand Creative Technology For decades, INA has stood for creative application solutions, excellent engineering and manufacturing expertise and exceptional customer proximity. Thinking outside the box, that is, taking new paths to develop ideas and think beyond barriers, is just as important now as it was when the company was first established. Dr. Georg Schaeffler, who founded the company with his brother Wilhelm in 1946, demonstrated what it means to think outside the box as early as 1949. At this point, his development of the needle roller and cage assembly a pioneering innovation helped the needle roller bearing achieve an industrial breakthrough. Georg Schaeffler s inventive spirit and his will to succeed have become a permanent part of INA s corporate culture in more than 35 plants worldwide. All over the world, INA develops and produces rolling bearings, plain bearings and linear guidance systems for mechanical engineering and engine components for the automotive industry. INA works closely with its customers as an engineering partner, starting with the initial stages of system development. We develop new customer-specific solutions on a daily basis. INA has invested heavily in research and development, most recently in new R&D centers in Germany, Asia and North America. INA brand products are used in the Schaeffler Group s Automotive division for applications in engines, transmissions and chassis and in its Industrial division. INA has unmatched expertise in manufacturing precision products using forming methods. This know-how allows efficient, customized solutions at an excellent price/performance ratio. In the Industrial division, the business units and sector management drive INA s and FAG s joint business. The starting point of INA s successful development was the cageguided needle roller bearing. Since then, the brand has stood for continuous development expertise. Important from the very beginning: close cooperation with customers to find solutions for their problems. 7

8 FAG s large bearings such as those used in the London Eye have diameters of more than four meters. High-performance materials increase the functional reliability and operating life of our products.

Schaeffler Group Brand Innovation in Motion The FAG brand also started with an ingenious idea. In 1883, Friedrich Fischer designed a ball grinding machine in Schweinfurt, Germany that, for the first time, made it possible to grind steel balls to absolute roundness. He thus laid the foundation for the entire rolling bearing industry. This is one of the reasons why FAG has long been considered a pioneer in rolling bearing technology. Today, FAG is one of the leading brands for applications in mechanical engineering, the automotive industry and in aviation and aerospace technology. FAG is present in all the major industrial countries with numerous companies, subsidiaries and agencies. Since 2001, FAG has been part of the Schaeffler Group and has been active in all the Group s divisions Aerospace, Automotive and Industrial. Together with INA s complementary product range, FAG has one of the widest product portfolios in the rolling bearing industry, covering nearly all applications in heavy industries, power transmission, wind power, railway, production machinery and consumer products. FAG ball bearings and roller bearings are manufactured as standard and special bearings in many designs and sizes with diameters ranging from 3 millimeters to 4.25 meters. Together with INA, FAG offers customers comprehensive support and services for the diagnosis, maintenance and mounting of rolling bearings and complete systems. With a view to the future, FAG has invested significant amounts in research and development. Modern simulation methods and testing facilities as well as special materials engineering laboratories ensure the continuous development and improvement of all product lines and confirm the innovative force of FAG. Quality testing under clean room conditions consistency that begins with the development process and ends with final inspection. F IS complements the Schaeffler Group s range of services, e.g. by providing remote data collection and diagnosis for condition monitoring. 9

10 Innovative LuK products reduce fuel consumption and make driving more comfortable and dynamic. Examples include continuously variable transmissions (CVT) and dual mass flywheels.

Schaeffler Group Brand Gearing up for Tomorrow LuK supplies systems and components for vehicle drive trains to customers around the world. Georg and Wilhelm Schaeffler founded LuK in 1965 with the initial aim of supplying diaphragm spring clutches for the successor to the VW Beetle. LuK clutches are used in one in four cars worldwide today. With innovative products and lean, customer-oriented structures, LuK has experienced highly dynamic growth. Nearly all major automobile manufacturers benefit from the excellent system knowledge of LuK engineers. Dedicated employees, innovative force, product development and technological leadership are the main factors of the company s success. Constructive cooperation with customers is just as important. This is why project teams are available to all LuK customers to ensure that specific requirements are met. As a technology leader in many areas, LuK can look back on the development of groundbreaking innovations: The dual mass flywheel, components for the continuously variable transmission for high torques, the automation of manual transmissions and high-performance torque converters represent significant contributions to the vehicle of the future. A current innovation is the dry dual clutch for e.g. 7-gear dual clutch transmissions, which allows comfortable and dynamic gearshifting without interrupting the tractive force. The high efficiency contributes to significant savings in fuel in comparison with conventional automatic transmissions. In addition, LuK is a major supplier for clutch linings. While LuK is responsible for the OEM business, Schaeffler Automotive Aftermarket is responsible for the Schaeffler Group s entire automotive aftermarket business to OEM quality and for all vehicle classes. In addition, Schaeffler Automotive Aftermarket offers important service concepts and programs and makes a significant contribution to providing information to repair shops and car dealerships. LuK develops and manufactures innovative products for the OEM business. Here, LuK always relies on the latest development technologies. Schaeffler Automotive Aftermarket provides distributors and repair shops with original brand replacement parts and offers a comprehensive range of services. 11

Automotive Reduced Fuel Consumption, Lower Emissions, Greater Driving Pleasure > Engine Systems > Transmission Systems > Chassis Systems > Automotive Aftermarket Precision products for engines, transmissions and chassis Our products represent a significant contribution to environmentally-friendly mobility. As an engineering partner and supplier for almost all automobile manufacturers, we develop and manufacture forward-looking products and system solutions for engines, transmissions and chassis. We use our advance development and product innovation process to work on requirements and solutions for the future. With INA, FAG, and LuK products as original replacement parts, reliable logistics and comprehensive services, Automotive Aftermarket is a high-performance partner for repair shops, distributors and end customers. Reliability for high-volume production For the development of precision products, the Schaeffler Group has integrated processes in all phases of product development from development to manufacturing. Methods such as virtual simulation, rapid prototyping for functional models and high-performance manufacturing technologies reduce development times and ensure the highest possible quality in volume production. 12 12

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Solutions for Engines In addition to classic valve control system components, the Engine Systems business division mainly develops and supplies innovative INA variable valve train systems and systems for variable cam timers. In addition to significant reductions in fuel consumption and the emission of pollutants, they allow increased dynamics and driving comfort. INA belt and chain drive systems are optimized to improve smooth running while increasing operating life. 14 Switchable bucket tappet Reduced fuel consumption and lower emissions Variable cam timer Higher torque at all engine speeds results in greater driving pleasure Toothed chain in timing drive Low mass and high fatigue strength in the timing drive Balancer shaft with rolling bearing supports Lower friction and weight reduces fuel consumption and emissions

Solutions for Transmissions and Drive Trains Innovative LuK classics include wear-compensating clutch systems and dual mass flywheels as well as modules for automatic transmissions and continuously variable automatic transmissions. Forward-looking products include innovative converter concepts for automatic transmissions and the dry dual clutch. With INA and FAG products, the Schaeffler Group provides comprehensive solutions for transmission bearing supports. Examples include INA axial and radial bearings or low-friction FAG tandem angular contact ball bearings for rear axle gears. Precision synchronizer components and optimized components for manual transmissions, such as internal gearshift units, increase gearshift comfort and reduce weight. Dual mass flywheel Increased driving comfort due to vibration decoupling CVT components Continuously variable gearshift operations reduce fuel consumption while increasing driving comfort Sprag clutch Reduces vibration in automatic and all-wheel drive transmissions or torque converters Internal gearshift unit Increased gearshift comfort and gearshift feel combined with optimized design and manufacture 15

Solutions for Chassis Systems INA and FAG products are first choice for innovative bearing solutions in chassis applications. FAG wheel bearings in passenger cars contain mechatronics and sensor technology for anti-lock braking systems (ABS), electronic power steering (EPS) and chassis adjustments. For use in brake systems, steering columns and suspension struts, INA bearings are easy to mount, require small installation spaces and offer additional integrated functions. The novel ball screw drives are used as actuators in steering gears and in electronically controlled suspension systems (ECS). 16 Universal joint Precise force transmission with reduced running noise in steering shafts and prop shafts Ball screw drive High performance density for modern electromechanical steering systems Twin tandem wheel bearing Reduced bearing friction and higher cornering rigidity Wheel bearing for passenger cars (with ABS sensor) Integrated sensor for increased stability and safety 16

Automotive Aftermarket The Aftermarket business division of Schaeffler Group Automotive is responsible for the automotive aftermarket business worldwide. Under the LuK, INA and FAG brands, it supplies components for transmissions, engines and chassis in original equipment manufacturer quality and for all vehicle classes. Comprehensive services for repair shops and automotive distributors round out the product range. 17 Set of OEM-quality replacement parts including all necessary Repair shop concepts for market-specific solutions that save 17 components for repair shops and distributors time and reduce the cost of repairs in the aftermarket

Industrial Bearing Solutions for Numerous Applications > Heavy Industries > Power Transmission > Wind Power > Railway > Production Machinery > Consumer Products > Industrial Aftermarket Customers from around 60 different industrial sectors rely on rolling and plain bearings, linear guidance systems, and direct drives made by the Schaeffler Group. Reliable in operation, they increase equipment availability, reduce weight and offer more compact system designs. Business units and sector management provide more than 40,000 catalog products and countless customer-specific solutions for a wide range of applications and requirements. X-life is the joint INA and FAG mark of quality, which consolidates the strengths of both these world-class brands in a unique dimension of quality. X-life is an integrated concept. It offers premium products that have an extremely long operating life in comparison to standard products and also a service, which includes everything that ensures the highest levels of reliability and cost-efficiency: starting from lubricants, diagnosis and fitting aids and extending to programs for bearing selection and calculation. 18 18

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Heavy Industries The Heavy Industries sector management provides support to end customers (OEM and MRO) worldwide from the raw material recovery, preparation and processing, steel and non-ferrous metals, cellulose and paper, power plant, and hydraulics sectors, as well as sales partners of the Schaeffler Group. International sales, application engineering and FAG Industrial Services (F IS), Schaeffler Group s service company, assist customers with solutions for heavy duty bearing applications. They develop rolling bearing and service concepts that extend the life cycle of machinery and reduce life cycle costs. 20 Axial spherical roller bearing Compensation of shaft deflections and misalignments, e.g. in steering gears for ships Rolling mill back-up roller High rigidity, very high precision and load carrying capacity, e.g. for rolling mills E1 spherical roller bearing Compensation of shaft deflections and misalignments, even at high speeds, e.g. in paper machines Four row cylindrical roller bearing Reduced design envelope and very high load carrying capacity, e.g. in rolling mills 20

Power Transmission The Power Transmission sector management ensures maximum operational safety and low operating costs in industrial gearboxes as well as construction and agricultural machinery, in conveying technology, in conveying trucks or in buildings and structures. The highest quality, performance and reliability are required in these applications due to the high power densities and extreme loads. Bearings in modern construction machinery, for example, must be designed for high shock loads and very high acceleration and speeds in the smallest possible design envelope. Dust, moisture and heavy soils place very high demands on agricultural machinery, and the plain bearings used in the bearing supports for buildings and structures must normally function for decades without any maintenance. Double row cylindrical roller bearing 21Full complement cylindrical roller bearing Maintenance-free and easy-to-fit unit with a Large contact angle for very high For extremely high axial loads in the smallest 21 for high load applications, e.g. for wire rope sheaves in mobile cranes Double row angular contact ball bearing high-performance three-lipped cassette seal for plow disc bearing supports Tapered roller bearing radial and one-sided axial loads, e.g. in transmission applications Tandem bearing radial design envelope, long operating life and low friction, e.g. in gearboxes

Wind Power Schaeffler Group Industrial has developed and produced bearing supports for wind turbines for over 30 years and has the right solution for all bearing positions. Detailed attention is paid to customer requirements as early as the concept phase. Bearing selection and documentation are backed up by sophisticated calculation and analysis methods as well as simulation programs for evaluating component kinematics. Products developed to an advanced technical level are optimally matched to the particular task. Condition monitoring systems, lubricants and fitting and maintenance tools round out the product range. In this way, Schaeffler Group Industrial helps to achieve low operating costs for wind turbines. 22 Spherical roller bearing With angular adjustment facility for the classic shaft bearing supports of a wind turbine Slewing ring For high static and dynamic loads and precise swivel movements, e.g. for wind tracking of the nacelle Double row tapered roller bearing For highly dynamic loads, e.g. for the bearing supports of the rotor shaft in single bearing concepts Double row cylindrical roller bearing For extreme peak and minimum loads and sudden alternating loads in wind turbine gearboxes 22

Railway In close partnership with manufacturers and operators, the Railway business unit develops and produces solutions for every bearing application in rail vehicles. The product portfolio comprises axlebox bearings including housings as well as bearings and components for traction motors and gearboxes, for railcar connectors and tilting technology, as well as for doors and numerous other applications. Schaeffler Group Industrial has more than 100 years of experience in railway engineering. This means it offers the customer comprehensive technical expertise, high quality, and products that are perfectly matched for every application. Tapered roller bearing unit TAROL Axlebox bearing Drive bearings Yoke type track roller unit 23 Ready-to-fit unit for axlebox bearing Compact bearing unit with optimized Efficient and reliable transmission of forces Bearing unit for tilting technology 23 supports mass housing design in traction motors and gearboxes in rail vehicles

Production Machinery The Production Machinery business unit offers solutions for every bearing position in machine tools, textile, printing, food processing and packaging machinery. The range includes rotary table bearings, screw drive bearings, linear guidance systems and high-precision bearings for main spindles. Together with INA Drives & Mechatronics GmbH & Co. ohg (IDAM) the specialist for direct drives within the Schaeffler Group the business unit implements integrated drive solutions for all rotary table and linear applications. Nearly all leading manufacturers of production machinery or their subsystems place their trust in the reliable, robust and durable products from INA and FAG. 24 High-speed rotary table bearing For very high speeds and precision and with integrated measuring system Screw drive bearing Rigid and clearance-free bearing support for very high speeds in machining centers Linear recirculating roller bearing and guideway assembly High-precision linear guidance system for linear axes in production machinery Spindle bearings 24 Hybrid bearings characterized by low noise and low vibration with ceramic balls for very high precision and speeds

Consumer Products Whether in household appliances, sports equipment, power tools, motorcycles, electric motors or medical technology, rolling bearings always ensure reliable operation at prices in line with the market. The Consumer Products sector management supplies customers with deep groove ball bearings, drawn cup roller clutches, linear bearings and needle roller bearings. Professional user support prolongs the operating life of the product for the end customer and optimizes product safety. The close engineering partnership with the customer enables the development of solutions that are optimally matched to customer requirements. Drawn cup needle roller bearing with open ends Thin section bearing Axial angular contact roller bearing Deep groove ball bearing 25 Very small design envelope and attractive price/ Space-saving, high-precision bearing, Compact bearing unit for high tilting loads, Sealed precision ball bearing with lifetime 25 performance ratio, e.g. for bearings in power tools e.g. for optical devices e.g. for ceiling stands in operating rooms lubrication, e.g. for electric motors

Industrial Aftermarket: Services FAG Industrial Services (F IS) is responsible for the worldwide service business of Schaeffler Group Industrial for the brands INA and FAG. Through innovative solutions for all aspects of maintenance, F IS supports customers in increasing machine availability and reducing maintenance costs. The F IS range includes services, products and training in the areas of corrective and predictive maintenance, lubrication, condition monitoring, repair of rolling bearings, mounting and maintenance management. 26 Condition monitoring Increased machine availability due to precise information about the condition of machines Mounting and repair High safety due to correct mounting and dismounting Troubleshooting Rapid assistance by means of measurements on running machines Lubrication Longer bearing operating life due to high-quality greases and lubricators 26

Industrial Aftermarket: Distribution The products of Schaeffler Group Industrial are sold through a comprehensive network of more than 3,000 external partners in over 80 countries worldwide. This way, we can provide customers with technical consultation services on site and ensure rapid supply of Schaeffler Group products and services. Like Schaeffler Group application engineers, our sales partners have the expertise and detailed technical knowledge necessary for identifying and fulfilling customers requirements. Schaeffler Group Industrial supports sales activities with excellent products and through high market penetration, numerous customer service measures, technical consultation and marketing activities. Product range Technical consultancy Sales promotion 27 Rolling bearing know-how for sales partners Successful customer communication by 27 The widest product range in the rolling bearing industry and end customers means of trade fairs, training and advertising

Aerospace Above and Beyond With Extreme Efficiency and Reliability > Aerospace > Aircraft, Helicopters > Special Applications Extreme reliability under extreme conditions our rolling bearing systems with integrated adjacent components are used in aircraft and spacecraft construction, resulting in increased performance, safety and reliability and thus reduced system costs. These parts also withstand extremely low or high temperatures, weightlessness and high acceleration forces. Our expertise is in demand all over the world. We manufacture high-precision bearing supports for aircraft and helicopter engines, the U.S. Space Shuttle and the European launcher Ariane, to name just a few products. In addition, we provide our customers with diagnostics and bearing reconditioning to help them reduce life cycle costs while maintaining a high level of system reliability. 28 28

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Aircraft/Helicopters, Aerospace The Schaeffler Group s FAG and Barden brands stand for the development and manufacture of special bearing supports for aviation and aerospace applications. These bearings help ensure that commercial aircraft are one of the safest means of transportation. Nearly all modern passenger aircraft use bearing technology from FAG. FAG Aerospace also took part in the development of the bearings and other precision components used in the engines of the new Airbus A380 wide-body aircraft and the Boeing B787 Dreamliner. In addition, FAG is a development partner and supplier to leading helicopter manufacturers all over the world. 30 Various aircraft engine bearing designs High-precision cylindrical roller bearings and three-point contact bearings suitable for extremely high temperatures and speeds. Applications include engines of passenger aircraft. Helicopter bearings Special bearings with very long operating life and high reliability, used in drive turbines, gearboxes, rotor pylon bearing supports, swash plates and rotor blade adjustment. 30

Special Applications International aerospace consortia rely on the high quality, reliability and performance of our aerospace bearings even under extreme conditions. Schaeffler Group products have proved their reliability in space in the Space Shuttle and the European launcher Ariane. On the ground, the Schaeffler Group supplies high-precision bearings under the FAG brand. Applications of these highly reliable bearings from the Aerospace division can also be found in sectors such as nuclear and medical technology, for example, in particularly low-noise thin section bearing systems for computer tomography. Aerospace bearings Thin section bearing 31 High-precision angular contact ball bearings for extremely low temperatures, Extremely low-noise and smooth running 31 used e.g. in applications with liquid hydrogen and liquid oxygen for turbopumps precision bearing, e.g. for computer tomography

32 Development expertise around the globe: Over 5,200 engineers use their expertise for the realization of new products and technology. Their strength is innovation and thinking outside the box.

Success Factors of the Schaeffler Group Innovation and Thinking Outside the Box 5,200 employees work on new products and technologies in more than 30 Schaeffler Group research and development centers all over the world. Highly-qualified engineers cooperate closely with customers from the automotive, mechanical engineering, and aviation and aerospace industries to develop new, forward-looking solutions. We are proud of the results the Schaeffler Group owns the rights to more than 13,000 patents and patent applications. Approximately 1,100 inventions are filed for patent applications every year. Creative engineering and solutions that are often unconventional characterize the engineers of the Schaeffler Group. Questioning existing solutions, taking unusual paths and looking at things from another point of view these are the prerequisites for the realization of extraordinary ideas. In addition to being capable of thinking outside the box, the engineers of the Schaeffler Group combine material know-how and new design and manufacturing expertise to develop innovative solutions. The Schaeffler Group s innovative force is based on employees regular discussions of their personal knowledge and experiences. Close contact with universities ensures that products and services are state of the art. To promote talent and the dialog between research and business, we present the annual Innovation Award of the FAG Foundation for technical-scientific papers on product innovation, enhanced manufacturing, and market strategy. The Schaeffler Group pays special attention to the creativity of its employees. Its idea management system is known to be one of the most efficient in Germany. An important prerequisite for the Schaeffler Group s development expertise is the intensive dialog among its employees. Creative ideas are complemented by state-of-the-art manufacturing technologies in all areas of production. 33

34 Excellent quality according to international standards in all areas from design to manufacturing, our quality objective is zero defects.

Success Factors of the Schaeffler Group Consistent Quality in Manufacturing and Processes Zero defects is the declared quality objective of the Schaeffler Group. We base our efforts on very high international quality standards. Our focus on quality is an integral part of the Schaeffler Group s corporate culture and is embraced in our day-to-day operations at INA, FAG and LuK. A consistent and strong quality management system throughout all phases from design to manufacturing ensures the highest product safety possible. This is an important prerequisite for establishing a trustful relationship with customers, suppliers and employees. Our success speaks for itself, since INA, FAG and LuK are among the world s technological leaders in the fields of cold-forming technology, forging technology, machining and assembly. State-of-the-art manufacturing technology for precision products represents a significant contribution to zero-defect manufacturing. Here, quality monitoring is integrated directly in the manufacturing process as a closed control loop. Regular audits are carried out in all areas to check and monitor our high quality standards. Our sophisticated monitoring systems for all manufacturing processes prevent defects from occurring. The quality awareness of every single employee contributes to the high quality standard of our products. Certifications according to international standards such as ISO 9001:2000, ISO/TS 16949:2002, AS9100:2004 and IRIS as well as many other certificates have proven the effectiveness of our management system. Numerous recognitions and quality awards from all of the major automobile manufacturers have shown that the Schaeffler Group has been successful with this policy and has met its customers high quality requirements. A focus on quality in all areas has always been an integral part of the corporate culture of INA, FAG and LuK. X-life, the joint INA and FAG mark of quality, consolidates the strengths of both brands in a unique dimension of quality. 35

36 The Schaeffler Group s corporate culture is characterized by optimism, drive and the will to succeed. Binding management principles are the basis for commitment, reliability and a trustful work environment.

Success Factors of the Schaeffler Group Promoting and Challenging Employees The most important potential of a company is its employees. A company is only as good as its employees is a principle consistently embraced by the Schaeffler Group. This family-owned company combines a long-term strategic focus with modern management methods and attractive jobs. Together with numerous social benefits, all of this contributes to a good corporate climate, low employee turnover and a high level of employee identification with the company. The Schaeffler Group s personnel policy focuses on promoting and challenging its employees. Personnel development is characterized by continuing education and training. Our employees benefit from a wide range of opportunities for development and career advancement both in-house and through transfers to other companies of the Schaeffler Group. Management-LIFe, for instance, is a forum for managers that combines targeted further education with the exchange of knowledge and the development of personal networks. The Schaeffler Group provides support to employees from the very beginning of their careers. Around 1,700 apprentices receive soundly-based vocational training at INA, FAG and LuK in one of over 20 technical or commercial professions. This means that the Schaeffler Group is at the forefront of German industry in terms of training. In addition, special study programs are offered in cooperation with universities and vocational academies to optimally combine technical studies and practical experience in the company. This combination of theory and practice ideally prepares the students for their future careers and supports their financial independence. School pupils, undergraduates and postgraduates also have numerous opportunities for internships, scientific work and project work. Roughly 1,700 apprentices receive comprehensive support early on in more than 20 technical or commercial professions. Through targeted further education, the Schaeffler Group offers a wide range of opportunities for professional careers. 37

38 The Schaeffler Group s products provide a lasting contribution to environmental protection, for example, through reduced friction and extended machine operating life or through the reduction of fuel consumption and emissions in vehicles.

Success Factors of the Schaeffler Group Sustainable Management In addition to long-term orientation and sustainability, effective environmental and safety (E&S) management is one of the Schaeffler Group s corporate objectives. Environmental protection and occupational safety are also practiced based on the conviction that this represents a significant contribution to the company s success and continued existence. Its worldwide certification at all locations according to very strict German standards have placed the Schaeffler Group in a leading position worldwide with regard to environmental protection and occupational safety. The Schaeffler Group s E&S principles that apply uniformly to all of its companies serve as the basis for successful E&S management. All employees are expected to comply with the laws and company guidelines and to implement defined programs. The plants of the Schaeffler Group have been certified to ISO 14001 at every location worldwide. Nearly all locations, even outside of Europe, have also been validated according to the even stricter EMAS regulation (EC) 761/2001. All production locations will be certified according to OSHA 18001 with regard to occupational safety by the end of 2010. Numerous awards from customers, organizations and governments all over the world have proven the Schaeffler Group s strong dedication to environmental protection. In production, all processes are inspected for their environmental relevance and potential hazards for employees according to legal and internal specifications. This allows risks and environmental effects to be minimized. Finished products also help reduce environmental pollution and protect resources in the long term. They contribute to lowering the fuel consumption and emission levels of vehicles and enable alternative forms of energy production such as wind power. Uniform environmental policy across all locations worldwide forms the basis of the Schaeffler Group s successful environmental management program. All manufacturing processes comply with strict legal and internal environmental protection requirements. The Schaeffler Group has made a commitment to comply with a comprehensive Code of Conduct that is valid worldwide. The company thus professes its support for achieving high social, ecological and employment standards. These requirements apply equally to employees and all suppliers. 39

Publisher Schaeffler Group Corporate Communication Industriestrasse 1 3 91074 Herzogenaurach Germany Contact Phone: +49 (0) 9132/82-0 Fax: +49 (0) 9132/82-4950 E-mail: info@schaeffler.com Photo credits Title, page 4: Christian Schmidt (courtesy of Michelin Reifenwerke KGaA and Porsche AG) Pages 2, 3, 12, 13, 28, 29: Getty Images GmbH Pages 18, 19: KUKA Roboter GmbH Page 38: Corbis Printed on chlorine-free paper. Layout: Buena la Vista AG, Würzburg 40