1. Page 1Präsentationstitel 1. Monat 2005 Competitive strategies for Swiss industries Philip Mosimann, CEO

2. Page 2WTO 27 March 2012 Contents 1.Brief portrait of Bucher Industries 2.Pre-conditions in Switzerland 3.Examples of competitive strategies 4.Some personal considerations 5.Discussion

3. Page 3 Agricultural implements Worlds leading manufacturer of specialised agricultural machinery for tillage, seeding, fertilisation, spraying, landscape maintenance, hay and forage harvesting, livestock bedding and feeding. Sales CHF 1000 m Employees 4 500 Municipal vehicles European and Australian market leader in municipal vehicles, offering a whole range of compact and truck mounted sweepers, winter maintenance equipment and refuse collection vehicles. Sales CHF 400 m Employees 1 500 Hydraulic systems International leader in the design and manu- facture of custom mobile and industrial hydraulic system solutions, offering an array of products encompassing pumps, motors, valves, power units, elevator drives and control systems. Sales CHF 400 m Employees 1 700 Glass container machinery World market leader in glass container manu- facturing and inspection machinery, offering a portfolio ranging from glass forming and inspection machinery to complete production lines and components for the glass container industry. Sales CHF 350 m Employees 2100 Small businesses Machinery and equip- ment for winemaking, systems and machinery for processing fruit juice, instant products and dewatering sewage sludge as well as the Swiss distributorship for tractors and agricultural machinery. Sales CHF 200 m Employees 600 WTO 27 March 2012 Our businesses – since 1807

4. Page 4 Major manufacturing sites worldwide WTO 27 March 2012

5. Page 5WTO 27 March 2012 Bucher group strategy (1) Principles Stakeholder approach with long term, industrial view Increase of enterprise value (RONOA>>WACC) Businesses with worldwide technology and market leadership with #1 to #3 market positions Profitable growth, where profit growth is prioritised Focus on organic growth enhanced with specific targeted acquisitions strengthening existing businesses Strong balance sheet with high liquid funds for independance from banks and stock exchange

6. Page 6 Bucher group strategy (2) Implementation of principles: Do what we understand: machinery and vehicles Do what we can best: Best owner of our businesses Do what we can handle: number of businesses 4 to 6 Do what we can finance: Cash-flow and growth Do what creates value: Innovation and profitable growth Consequences in group management Lean and decentralised management structure Lived entrepreneurial attitude with common methodologies Balance of trust and reasonable controls WTO 27 March 2012

7. Page 7WTO 27 March 2012 Pre-conditions in Switzerland Generell environment -Excellent infrastructure for business, living, and leisure -High security level politically, socially, financially -Internationally open society, entrepreneurial freedom, competitive tax systems both in business as well as in private -High cost country with strong currency Education and innovation -Universities, technical high schools, dual education system -Established knowledge transfer fro universities to businesses Swiss businesses -No or very small home market -Quality, reliability, innovation, automisation, work ethics -World champion in exports per capita

8. Page 8 FOREX issues – a new phenomena? WTO 27 March 2012 USD / CHF

9. Page 9 Euro – Problems with previous currencies and related governmental behavior? WTO 27 March 2012 EUR / CHF

10. Page 10WTO 27 March 2012 Competitive strategies Topics on any board agenda Access to main markets which are outside Switzerland -Manufacturing at one place, export worldwide -Split of value & supply chain: why, how? -Protectionism today and tomorrow Which technologies for which markets What can we do better here than elsewhere? Why, how? What exactly means better – customers decide! For which technologies, products, applications is Swiss made the best solution? For which ones not?

11. Page 11WTO 27 March 2012 Internal & external growth Investments: 70% internally, 30% externally Net sales CHF million

12. Page 12WTO 27 March 2012 Acceleration of structural change CHF million 1986: Public offering Net sales CHF 0.4 bn 2730 employees 3 Acquisitions in DT and FR 12 Acquisitions Focus Europe, first transaction in Asia 1 Divestment 23 Acquisitions EU, USA, India, Brasil 6 factory closed 8 Divestments 5 Acquisitions USA, CN, Europe 1 factory closed 1 Divestment 1996: Creation of divisions 1998: Acquisition Emhart Glass 2004/06: Divestment Laeis Division 2008: Net sales CHF 2.8 bn 8400 employees

13. Page 13WTO 27 March 2012 Global Footprint (1) 1807 - 1990: Focus Europe (CH, FR, GE)

14. Page 14WTO 27 March 2012 Global Footprint (2) 2012: 36 production sites worldwide

15. Page 15WTO 27 March 2012 Acquisition… 2002 Knight Manufacturing, Brodhead, USA

16. Page 16WTO 27 March 2012 …integration and internal growth Agricultural machinery, Brodhead today USD 30 million invested in buildings since 2003 Total campus: 13 ha + 32 ha testing area 2004 2008 2006 2008 2011 Number of employees doubled in the last 6 years

17. Page 17WTO 27 March 2012 Production and R & D Glass container industry 2007 R&D Center Windsor (USA) 2008 Johor Bahru (Malaysia) 2011 Majority interest in Sanjin (China)

18. Page 18WTO 27 March 2012 Swiss success story (1) Hydraulic systems, Frutigen 1974 – 1993Bei der Übernahme 1997 2000 Heute

19. Page 19WTO 27 March 2012 Swiss success story (2) Hydraulic systems, Neuheim Bilder folgen

20. Page 20WTO 27 March 2012 Swiss success story (3) Municipal vehicles, Ventspils, Latvia

21. Page 21WTO 27 March 2012 Swiss factory (1) High automisation

22. Page 22WTO 27 March 2012 Swiss factory (2) Automated manufacturing

23. Page 23WTO 27 March 2012 Swiss factory (3) Rationalised assembly & testing

24. Page 24WTO 27 March 2012 Swiss owned & run factory (4) Manufacturing and assembly WTO 27 March 2012

25. Page 25 Investments since 2002 sales 2011employees 2011Capex 2002-2011 CHF m Switzerland1175%99710%11716% Rest of world2 21995%9 13990%61784% Total2 336100%10 136100%734100% WTO 27 March 2012 # factories Capex / factory CHF m Switzerland310%39 Rest of world3390%20 Total36100%22

26. Page 26WTO 27 March 2012 Personal considerations Cometitiveness in Switzerland 1.Expand excellent pre-conditions in Switzerland 2.Intensify co-operation with universities 3.Innovation and R&D: Continuity as success factor 4.Make structural changes fast; position company in major markets 5.Adapt supplier base to major markets 6.Permanent modernisation and automisation of factories 7.Create culture of continued improvement Kaizen 8.Secure strong balance sheet and financing in good times 9.Understand FOREX hedging as buying of time 10.Build dedicated, competent and creative work force

27. Page 27Präsentationstitel 1. Monat 2005 Thank you for your kind attention