Kendrion’s policy is focused on the creation of sustainable added value and the achievement of appealing return on investment for the company as a whole. This is based on a powerful focus on a number of selected operations and on profitable growth achieved both organically and via acquisitions. Kendrion’s objective is to evolve from a European player into even more of a global player. Within this context, the USA, China and India are important countries for further growth. Kendrion intends to achieve this objective by building up and expanding its leading market positions in selected niche markets in terms of both revenue and added value.

Kendrion utilises its existing know-how, innovative capacity and commercial strengths to offer solutions to a wide range of customers, whereby the company shall focus on the further expansion in the fields of applications for electromagnetic systems and components.

Kendrion, characterised by its transparency, flexibility and local entrepreneurship, is driven by challenging but realistic targets. In addition, Kendrion intends to be and remain a company that appeals to its employees, customers and shareholders. Kendrion is aware of the importance of sustainability and of Kendrion’s social responsibility, and for this reason the social and environmental standards governing all processes are continually being made more stringent.

Kendrion’s spearheads are:
- Niche market leadership in selected business-to-business markets;
- Organic growth in the current operations;
- Utilisation of synergy in and between the business units (locally but also internationally);
- Balanced spread of the operations;
- Targeted add-on acquisitions;
- Enhancement of the innovative capacity;
- Corporate Social Responsibility and sustainability.

Niche market leadership in selected business-to-business markets
Kendrion endeavours to achieve niche market leadership in selected business-to-business markets. Niche markets are small markets, where ’small’ refers not so much to revenue or volume as to a limited number of suppliers in the sense of quality (technology and innovation). Kendrion intends to acquire a leading position in the niche markets that offer appealing margins and which are governed by relatively high barriers to entry (know-how, investments). Kendrion’s products and related services have the following features:

- The products and services are of an innovative and technical nature;
- Products and services are mostly customised;
- The contribution to costs may be ‘minor’, but is essential to the customer’s finished products;
- The number of customers (and suppliers) is limited but there are long-term relationships;
- The market for a specific product or service offers the company an opportunity to hold a leading position in that market.

Organic growth in the current operations
Kendrion endeavours to achieve organic growth in its operations in terms of revenue, volume and result. This can be achieved by having powerful market positions, further expansion of the company’s high-grade engineering and test facilities, offering customised solutions to customers and the provision of excellent logistics concepts. Top priority is assigned to the provision of first-rate service and knowing the market segments and customers demands.

Utilisation of synergy in and between the business units
Kendrion’s four market-focused business units operate in different markets. Kendrion endeavours to achieve optimum synergy in and between the business units by measures including joining forces in marketing and sales and exchanges of engineering know-how, purchasing and support services such as HR, Finance, and IT.

Balanced spread of the operations
Kendrion attaches great importance to a balanced spread between its automotive and industrial operations as these activities are beneficial to each other and jointly increase Kendrion’s level of expertise. For this reason Kendrion intends to improve this spread and, following an assessment, has expanded its strategic objectives as follows:
- Vigorous growth in revenue in the company’s core activities (in part by means of acquisitions);
- Primary focus on value-added acquisitions preferably in industrial operations;
- Great efforts to achieve continued growth in the USA and China;
- Acquisitions in Europe, provided that they strengthen Kendrion’s technological and market position.

Kendrion intends to safeguard stable results by avoiding a dependency on one geographical market. Kendrion endeavours to achieve a balanced geographical spread of its operations over the world, with Europe, the Americas and Asia as the most important geographic markets. In Europe, the importance of countries in Eastern Europe needs to increase. Eastern Europe offers opportunities in terms of production locations and markets, as is illustrated by the operating company in the Czech Republic. The Americas and Asia are also becoming more important. Kendrion is increasing its focus on these areas to achieve further growth, whereby the company is striving to create centres of excellence in each continent, each offering solutions as locally required.

Kendrion strives to achieve a balanced customer base in which, in principle, no customer generates more than 5% of the company’s total revenue.

Targeted add-on acquisitions
Kendrion endeavours to acquire companies that enhance the company’s leading position in its markets and the geographical spread of its operations. Kendrion is focused on strengthening the company’s position in the markets outside Europe, more specifically in the markets of the American and Asian continents. An example is the acquisition of FAS Controls, Inc., North Carolina, USA, now operating under the name of Kendrion (Shelby) Inc. However, Kendrion still perceives interesting opportunities in Europe, in particular in Germany. Kendrion intends to achieve further growth, in particular by acquisitions in the industrial segments. Acquisition targets need to offer good returns in terms of their EBIT and ROI, preferably at levels similar to Kendrion’s returns, but at least leading to improvement of the earnings per share.

Enhancement of the innovative capacity
Globalisation and technological developments are increasing the competitive pressure. Kendrion is aware that the company will be unable to achieve and retain its planned growth and attractive market positions without a strong innovative behaviour, strong engineering capacity, its knowledge of markets and customers and permanent improvements to its operations. This will in turn require Unique Selling Points and innovation. Kendrion uses a multi-year Innovation Calendar that states fixed times at which the business units are encouraged to introduce innovations. This leads to annual presentations of Kendrion’s most important innovations to its stakeholders, such as the second Dr. Wilhelm Binder Day, which Kendrion organised in Villingen (Germany) in November 2012. Kendrion also makes use of the services of an external Innovation Board for the provision of the necessary advice and support to the company. Kendrion recently also developed an Intellectual Property strategy and devotes continually increasing efforts to the development of knowledge management.

Corporate Social Responsibility (CSR)and sustainability
Pursuant to Kendrion’s mission CSR and sustainability are intrinsic, integral elements of the company’s operations. This form of entrepreneurship pivots on the creation of multiple values (People, Planet and Profit). Sustainability is already at the core of many of the company’s products and innovations. Kendrion intends to secure a sustainable and ‘green’ environment for the generations to come for so far as this is within the company’s control. Kendrion intends to enhance its sustainability strategy and bring the strategy further into line with the company’s overall strategy, for example in terms of the use of materials and the product portfolio. Some of relevant global trends such as climate change, scarcity of resources, sustainable energy and population growth offer also opportunities that Kendrion intends to  explore further. In the longer term these can make an essential contribution to the creation of value for all Kendrion’s stakeholders and the attraction of motivated employees.