Strategy

Kendrion’s policy is focused on the creation of sustainable added value and the achievement of an 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 organic as well as by acquisition.
Kendrion intends to build up and expand its leading European market positions in selected niche markets in terms of 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 of the fields of applications for electromagnetic systems and components. In addition, Kendrion intends to evolve from a player on the European market into a global player.
Kendrion is characterised by its transparency, flexibility and local entrepreneurship, whereby the company 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 its 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;
• Balanced geographical spread of the operations;
• Targeted acquisitions;
• Enhancement of the innovative capacity.

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, whereby ‘small’ relates 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 services have the following features:
The products and services are of an innovative and technical nature;

• All products and services are customised, dedicated to the supplier or customer;
• The contribution may be ‘minor’, but is essential to the customers’ finished products;
• The number of customers (or 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 the revenue, volume and result. This can be achieved by having powerful market positions, the further expansion of the company’s high-grade engineering and test facilities, and the provision of excellent logistics concepts. Top priority is assigned to the provision of first-rate service.

Utilisation of synergy in and between the business units
Kendrion’s four market focused business units differ from each other, and 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 achieving economies of scale in production, purchasing and support services such as HR, Finance, and IT.

A balanced geographical spread of the operations
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, whereby priority is assigned to covering the most relevant European markets. Nevertheless, the importance of countries in Eastern Europe and outside Europe shall continue to increase. Eastern Europe offers opportunities in terms of production locations and markets, as is illustrated by the 2008 start-up of the Kendrion Binder Magnete s.r.l. operating company in Romania. The Far East and USA are becoming more important, although for the time being they are only modest in the context of Kendrion.

Targeted acquisitions
Kendrion endeavours to acquire companies that enhance its leading positions (both in terms of its markets and the geographical spread of its operations). These acquisitions are pursued, in particular for the industrial business units.

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 permanent improvements to its operations and its knowledge of the markets and customers. This will in turn require USPs and innovation.