Annual Report 2014

Goals and Strategies

The overriding goal of the technotrans Group is to increase the value of the company in the long term. To achieve that goal, technotrans concentrates on its core skills in the sphere of liquid technology, while focusing investment on measures that enable it to expand its product range further and gain a foothold in new areas of application for its technologies. Organic growth is rounded off by partnerships in areas where its core skills are called for, and also by targeted acquisitions. technotrans concentrates on niche markets where it is possible to achieve a market share in the region of 50 percent, taking into account the scale of its own business and the available resources. This is the key to being able to capitalise on economies of scale in offering customers benchmark technology and prices. technotrans is well-placed to realise such goals thanks to its clear focus on system partnerships with major industrial clients (OEM) which operate worldwide and expect their suppliers to have a similar organisation.

Its strategy is to seek sustainable, profit-driven corporate development. The overriding financial objective of the group is profitable growth. technotrans targets growth involving a revenue increase averaging between 5 and 10 percent per year. Its focus is on a steady improvement in the rate of return (EBIT margin) in the direction of 10 percent.

A sustained ability to distribute dividends and sound financing based on a high equity ratio also feature in the group’s overall goal.

Strategic Fields of Activity

Group development

Improving the company’s organisation and structure in order to underpin internal and external growth.

The growth strategy’s implementation is supported by the corporate structure in that both the three business units – in which the core skills are concentrated – and the international sales and service locations worldwide are given growth targets to realise.

Increasing customer benefit

The product portfolio is continually being improved. Products and processes are undergoing evolutionary development to reflect changing customer requirements.

As a systems supplier to the printing industry, technotrans has held a leading position in its product areas for many years. Based on its close ties with the manufacturers of both offset and digital and flexographic printing presses, along with its unique expertise, we intend to consolidate our role as technology partner in that industry and – wherever possible – build on it. It is, however, assumed that this basis for offset printing business is likely to reveal a slight contraction in market volume in future. In addition, technotrans is also increasingly active in digital and flexographic printing – both areas likewise still have potential for moderate growth.

Broadening the business base

technotrans intends to broaden its business base to reduce its economic dependence on individual product lines and industries and therefore reduce the risk and impact of cyclical fluctuations. This entails both the further penetration of established markets and entry into new industries and application fields, making use of technotrans’ core skills.
In order to achieve its growth targets, technotrans has therefore been vigorously developing and expanding applications outside the printing industry since 2010. The focus of the activities that are bracketed together in the technotrans industrial system solutions (ttis) sales area is on using technotrans core skills in industries with long-term growth potential. These include machine tool engineering, stamping and forming technology, laser and medical technology, and the energy storage technology area.

As well as organically accessing new markets, technotrans’ growth strategy also involves the acquisition of companies with core skills that usefully complement those present in every area of the group. Acquisitions are fundamentally structured in such a way that they directly deliver increased value added. Wherever possible and advisable, the form of participation is moreover designed to ensure that the holders of critical expertise are bound to the company in the long term.

Quality

Quality, alongside economic efficiency, is a core value of technotrans products. We are continually improving quality management in order to supply customers with reliable equipment swiftly, often after only a short time in development.

Increasing collaboration across multiple locations

Capacities and potential are being integrated on a group-wide scale in order to derive optimum benefit from them, with the objective of generating long-term added value in all areas of the company.

technotrans’ strategy includes systematically expanding and further internationalising the growth areas.

Systematic personnel development

All key human resources processes are being improved and also standardised wherever possible and helpful. The aim is to attract and hold onto good employees and to assure systematic personnel development.