HOERBIGER YEARBOOK 2015/2016

„PerformancePROVEN. counts. This is the performance expectation that unites the people of HOERBIGER. WhereverNEW. we operate, we set standards with the unique features of technologically sophisticated key componentsGROWING. and services, and thereby enable our customers to sustainably increaseNO theirW company! value.“ TABLE OF CONTENT

FOREWORD STANDARDS SINCE 1895 Positioned Well for Stability and Continuity Excellence & Growth 114–121 4–17 TOGETHER CEO STATEMENT Cooperation and Leadership PROVEN. 122–125 NEW. GROWING. PRODUCTS AT A GLANCE NOW! Performance-defining 18–27 126–127

HIGHLIGHTS LOCATIONS 28-41 Close to Customers Worldwide 128 GROUP PROFILE Increased Engagement, Overcame Challenges 42–67

COMPRESSION TECHNOLOGy Keeping an Even Keel 68–91

DRIVE TECHNOLOGy Delivered on Promise – Excellent Job 92–105

HyDRAULIC SySTEMS Compact Power 106–113 CORPORATE STRUCTURE OF THE HOERBIGER HOLDING AG CODE OF CONDUCT Our commitment to integrity and compliance

We run our businesses based on our Corporate values: Pioneering Spirit, Courage, Fairness and Closeness. These values are the foundation of our Corporate Culture and HOERBIGER’s success. Every day we are faced with decisions about what is right or wrong. Even in complex situations Board of Directors our pace is fast. For this the Code of Conduct provides definite and clear directions. The Code of Conduct affirms our commitment to Business Excellence. It is a commitment which we Dr. Marcus Flubacher, President | Dr. Gerd Unterburg, Vice President give to our customers, and to each other: We will act with personal integrity and in compliance with Dr. Andreas Hünerwadel | Dr. Rudolf Huber | Dr. Manfred Reichl | Egbert Appel legal and ethical principles at all times. With our Code of Conduct we also recognize our social responsibilities as a globally active company. We respect and support the goals as of relevant international conventions such as the United Nations Global Compact. All HOERBIGER employees must be familiar with the Code of Conduct and follow its letter and Executive Board spirit; the Code applies worldwide. We are convinced that our customers and other business partners will honor that we conduct our business with personal integrity and in compliance with legal and Dr. Martin Komischke, Chairman ethical standards. Thomas Englmann | Charles Friess | Johann Hipfl | Gerhard Wagner We manage our company by striving for highest standards of business excellence: because performance counts.

We conduct our business with respect for human We treat our suppliers fairly. We expect our suppliers dignity, in recognition of human rights, and in to strive towards the same high standards for accordance with applicable laws. business conduct and product quality that we have Strategic Business Unit Strategic Business Unit Strategic Business Unit Business Division Corporate set for ourselves. We are committed to economically and environ- Compression Technology Automation Technology Finance | Controlling Hydraulic Systems Human Resources mentally sustainable business practices. We protect proprietary business information, private data, and intellectual property rights. Proprietary Johann Hipfl Thomas Englmann Charles Friess Dr. Martin Komischke Gerhard Wagner We provide safe working conditions. company information and data may be released to interim third parties only with prior authorization. We continuously develop the abilities of our employees, and evaluate performance objectively. We keep accurate records, and guarantee complete reporting of financial and operating information to We show mutual respect as we collaborate across management, shareholders, and third parties. cultures. We act with integrity and honesty at all times. We We recognize the freedom of association of our will declare potential conflicts of interest. We will workforce. protect the company’s assets, and will not use our position at HOERBIGER for personal gain. We conduct all our business with integrity and transparency. We oppose corruption. We take pride in HOERBIGER. We protect the good reputation of our company as well as the image and HOERBIGER IN FIGURES We deliver superior products and services to our the value of the HOERBIGER brand. customers. We support free and fair competition, and we comply with relevant competition laws. We accept the challenges of ethical conduct. In critical situations we will support each other to Sales * (in EUR million) 2015 Ratio in % Δ in % 2014 Ratio in % We take due care in the selection of our business keep our commitments to move HOERBIGER HOERBIGER Group 1.115,1 100,0 +2,5 1.088,2 100,0 partners. We comply with export controls and anti- forward. money laundry regulations. Compression Technology SBU 640,8 57,5 +3,5 619,1 56,9 Drive Technology SBU 357,9 32,1 +5,4 339,4 31,2 Hydraulic Systems BD 110,5 9,9 –10,2 123,1 11,3 Corporate 5,9 0,5 –10,6 6,6 0,6

* (without intercompany sales, including Business Segments newly assigned in 2015 annualized) PROVEN. NEW. GROWING. NOW! Foreword

4 FOREWORD 5 POSITIONED WELL FOR EXCELLENCE & GROWTH

Ladies and gentlemen, fellow employees,

The HOERBIGER Group closed out the 2015 fiscal year with sales of 1.115 billion euros, exceeding the previous year’s level of 1,088 million euros by 26.9 million euros. This equates to an increase in sales of 2.5 percent. The Group’s earnings before interest and taxes in 2015 were 71.4 million euros.

This result was supported in particular by the positive trend in our Drive Technology Strategic Business Unit. In 2015, Drive Technology developed in an outstanding way and acquired Dr. Marcus Flubacher a number of new orders that will ensure continued growth in the coming years. President of the Board of Directors HOERBIGER Holding AG

In contrast, the market environment was much more difficult for the Compression Technology Strategic Business Unit than we anticipated even a year earlier. Key aspects were the growing restraint in the oil and gas industry in terms of new investments and service orders, prompted by the collapse in the price of oil, and the continued uncertain markets in Latin America. Foreword

6 7

Formulating growth

Contributing approximately 58 percent to total revenue, the Compression Technology Our future plans provide not only for organic growth, but also for strategically important Strategic Business Unit nonetheless remained the backbone of the Group. With the successful growth options through acquisitions to a greater degree than before. The objective is to expansion of our new Safety Solutions Business Segment in 2015, in spite of difficult market develop the broader expertise needed to stay competitive internationally, and purposefully conditions, the Strategic Business Unit positioned HOERBIGER in this extraordinarily employ additional synergies in the cultivation of our markets. attractive growth market in exemplary fashion. With this in mind, the Board of Directors and the Executive Board implemented several The Hydraulic Systems Business Division accounted for approximately 10 percent of projects in 2015 to optimize the existing acquisition processes. These projects also prompted corporate sales in 2015 and overall held its ground well, despite a challenging market. a new orientation for Corporate Business Development. I would like to express the Board of Directors’ gratitude and recognition to the Executive Board, our senior managers, and all employees for their remarkable commitment in what Strengthening processes was at times an extremely difficult market environment. At just over one billion euros in sales, and as a result of recent growth plans, the HOERBIGER Acting with a long-term view Group has reached a size that makes it necessary to critically assess and strategically reorganize proven workflows and processes so as to efficiently consolidate the increasing complexity of The HOERBIGER Group is positioned well with its strategically balanced portfolio. the procedures and decision-making processes that comes with added growth. This allowed us to move forward with our growth projects, which strive for longevity and The Board of Directors therefore supports the Executive Board’s extremely important strategic sustainability. The Executive Board and our senior managers in 2015 again expedited initiative that lies behind Project STREAM. This is designed to resolutely and systematically projects and initiatives that are tied to our Mission Excellence & Growth with great address necessary process optimizations throughout the company as a result of the Group’s dedication. growing complexity. With great appreciation, we notice the high levels of engagement by senior managers and employees who play an active role in this strategically important project. Their collective work on the future of the HOERBIGER Group takes them well beyond the challenges of their day-to-day business.

Expediting compliance

Our business partners recognize and appreciate our Corporate Governance and our initiatives to increase compliance. In the future, governance and compliance will form the premise for new business relation­ ships and sustainable corporate success to a decisive degree. We will therefore continue to expedite the implementation of a consistent compliance system. Foreword

8 9

Generational change

Effective June 30, 2016, we will undergo an important generational change in the HOERBIGER Additionally, Dr. Hünerwadel will assume the office of President of the HOERBIGER Foundation Group on the Executive Board and the Board of Directors of HOERBIGER Holding AG, and from me effective July 1, 2016. Within the HOERBIGER Foundation, Dr. Martin Komischke will on the Board of Trustees of the HOERBIGER Foundation. succeed Dr. Gerd Unterburg as Vice President. Together with my Vice President Dr. Gerd Unterburg, I will step down from the Board of Directors of HOERBIGER Holding AG and from the Board of Trustees of the HOERBIGER Moment and impetus Foundation. We have prepared for this generational change, both on the Board of Trustees and on the Against the backdrop of the current generational change in the leadership of the HOERBIGER Board of Directors, for quite some time and with great diligence. In our deliberations, it was Group, we will take the HOERBIGER Business Meeting in June 2016 as an opportunity to high- particularly important to us to consider the requirements that our company, held by the light that our HOERBIGER Group – both through its new members on the Boards of HOERBIGER HOERBIGER Foundation and our family shareholder Christiana Hörbiger, places on the Holding AG and of the HOERBIGER Foundation, and through its strategic orientation – is ideally individuals­ who work on our Group’s highest governing boards. positioned for a continued successful future, based on excellence and important, further profit­ One particularly important concern was to ensure HOERBIGER’s continuity and stability able corporate growth. going forward, while preserving the character and nature of our family business, which is An important milestone in this process is also the opening of our new HOERBIGER location steeped in heritage and values. in Vienna-Aspern, and the associated closure of the HOERBIGER plant and former HOERBIGER With this in mind, I am delighted that Dr. Martin Komischke will assume the office of head office in Vienna-Simmering. President of the Board of Directors of HOERBIGER Holding AG effective July 1, 2016. It was in Vienna-Simmering that Alfred Hörbiger began in-house production of valves in 1931. Martin Komischke joined our company 23 years ago. Since 2004, in his capacity as CEO and Following the reconstruction of HOERBIGER Ventilwerke in Vienna-Simmering, Martina Hörbiger Chairman of the Executive Board, with the utmost dedication he has very successfully advanced rebuilt the HOERBIGER group of companies during the postwar era, also establishing new HOERBIGER into today’s strategically well-positioned global Group. I take this opportunity to business relations with customers in Europe, the Americas, Africa, and Asia. express to him the deep appreciation and gratitude of the Board of Directors and shareholders The managers of the HOERBIGER group of companies, appointed by Martina Hörbiger and of the HOERBIGER Group. the Board of Trustees of the HOERBIGER Foundation, laid the basis in Vienna for the new The Board of Directors and shareholders of the HOERBIGER Group have appointed orientation of the HOERBIGER group of companies to evolve into today’s global HOERBIGER Dr. Jürgen Zeschky as CEO of the Executive Board and successor to Martin Komischke. Group strategically managed by the Board of Directors and the Executive Board. Dr. Zeschky is a high-level executive with international experience. The clean lines of the architectural style of our new building in Vienna-Aspern are intended I am convinced that in our selection we have ensured that the HOERBIGER Group will to uniquely embody the HOERBIGER character and nature. Our corporate values – Courage, continue its existing successful development under new leadership. I wish Dr. Zeschky and his Pioneering Spirit, Closeness and Fairness – will be tangible in every detail to our international colleagues on the Executive Board a good start in their shared future tasks, and I am confident business partners as well as our employees on a daily basis. that their existing relationship with the Board of Directors will continue in a spirit of mutual The modern design features of the HOERBIGER Forum, which is the focal point of the trust and cooperation. building, document the evolution and future of HOERBIGER. The Forum very successfully On the Board of Directors of HOERBIGER Holding AG, Dr. Andreas Hünerwadel and his combines office space for managerial tasks, Marketing and Sales, along with Research and colleagues on the Board will support Dr. Martin Komischke effective July 1, 2016, at which point Development, Production, and Logistics. Dr. Hünerwadel will assume the position of Vice President of the Board of Directors, succeeding Dr. Gerd Unterburg. I am delighted about this appointment as well. Foreword

10 The Hanns Hörbiger Room that we have created as part of the new building is intended to 11 symbolize, in a special way, how closely connected our global HOERBIGER Group today is with his heritage and company history. In this connection, I want to express my gratitude and respect in particular to our family shareholder Mrs. Christiana Hörbiger, who was personally devoted to implementing the Hanns Hörbiger Room in our new building at the Vienna-Aspern location. The result is an exceptional spot in which the special HOERBIGER spirit, which is inextricably linked to our heritage, will remain tangible for future generations.

A message of thanks

I take this opportunity to thank all employees of the HOERBIGER Group for the confidence placed in me in my capacity as President of the Boards of Directors and Trustees during my 21-year tenure, and for the tremendous warmth shown to me during the many visits to our companies. Over all the years, I have always performed my function as President of the Boards of Directors and Trustees with pleasure and great passion for you, our shared success, and the success of our HOERBIGER Group. I equally thank my colleagues on the Board of Directors and the Board of Trustees, our family shareholder Mrs. Christiana Hörbiger, and our external advisors on the Board of Directors’ committees. It was a great pleasure to work with you for HOERBIGER. With your expertise and wealth of experience, all of you aided in moving the HOERBIGER Group forward on its existing successful path. I would like to take this opportunity to express my particularly heartfelt thanks to my colleague Dr. Gerd Unterburg, Vice President of the Boards of Directors and Trustees, for the long-standing close working relationship marked by a special bond of trust in my duties on these Boards. I again express special recognition to the members of the Executive Board and the senior managers of the HOERBIGER Group for the high level of personal commitment that the responsible operational management of our Group commands. Additionally, my heartfelt thanks also go to the spouses and families of our senior managers, as does my gratitude to all our employees. They demonstrate great dedication in sharing the demands that the global growth of our Group presents at all levels. For our HOERBIGER Group and the people who support the development of our company through their daily work, their talent and skills, I wish you a successful future with HOERBIGER!

Dr. Marcus Flubacher President of the Board of Directors HOERBIGER Holding AG “OUR CUSTOMERS BUILD SMALLER COMPRESSORS WITHOUT COMPROMISING PERFORMANCE.” COMPRESSION TECHNOLOGY

Compressors compress natural gas to transport it over long distances, for high-pressure storage, and to allow it to be used in power plants and industrial processes. HOERBIGER compressor valves and innovative control systems are key to compressor performance. They save energy, increase reliability, and cut costs. Thanks to the CP valve and the HydroCOM system, HOERBIGER is the world’s innovation and technology leader for the performance-defining components of reciprocating compressors.

Fiber-reinforced non-metallic material makes HOERBIGER valves more durable and reliable than valves made entirely of steel. Thanks to our valves’ flow-optimized design, our customers are able to build smaller and more cost-efficient compressors than their competitors, without compromising

Dr. Matthias Kornfeld performance.

The HOERBIGER HydroCOM system precisely regulates the gas volume the compressor has to provide at a given time. Over a longer period, that means significantly lower operating costs. This benefits our customers and the environment. Gas flows through our valves into reciprocating compressors, where it is compressed, and then flows back out. It contains all sorts of impurities: metal chips, dirt particles, and rust. Our modern high-performance valve plates withstand this enormous stress. “WE SUPPLY SYNCHRONIZER SYSTEMS WITH PERFECT QUALITY.” DRIVE TECHNOLOGY

HOERBIGER is gaining traction with synchronizers that fit into even the smallest of spaces and provide added performance. Our synchronizers combine maximum shifting comfort with reliability and long life. That keeps our customers on track, even when they face fierce competition. HOERBIGER repeatedly sets new standards, especially in engineering and production – with CompactLINE, for example, a powerhouse for compact transmissions.

HOERBIGER has been producing highly efficient synchronizer rings using metal forming and fine blanking processes for about two decades. We set standards.

This know-how has now made it possible to develop a complete synchronizer system with perfect quality and high stability. Virtually every part is produced by steel forming.

Götz Kwittner CompactLINE also stands out in terms of another HOERBIGER core competence. Carefully crafted engineering packs maximum synchronizer performance into a small space. That saves weight too: CompactLINE is 35 percent lighter than traditional synchronizers. That makes the whole transmission considerably lighter and smaller, so automobiles of the future can be more powerful as well as more efficient. “OUR HYDRAULICS TECHNOLOGY IS UNRIVALED.” HYDRAULICS

HOERBIGER hydraulics move, raise and lower things. They operate with speed, power, and maximum precision. Our lightweight Type 6 power unit opens and closes convertible tops in the smallest space. It’s all possible thanks to sophisticated hydraulic interconnection technology, with unique features not available elsewhere.

How can we make hydraulics perform even better in a small space? That was our challenge.

We took our inspiration from electronics. It’s ingeniously simple. Rather like a circuit board for electronic components, we mill narrow channels into the surface of a metal plate that forms the heart of the hydraulic control and energy unit.

What looks like the conductive tracks on a circuit board actually

Klaus Stolle performs a similar function. Except that in our control unit the logic connections carry hydraulic oil instead of electricity. We form this hydraulic circuit board into a cylinder shape. That surrounds the hydraulic pump, and the whole thing drops into an outer housing.

There you have it: our small, lightweight, yet powerful hydraulic power unit. 18 CEO STATEMENT 19 CEO Statement PROVEN. NEW. GROWING. NOW!

Ladies and gentlemen, fellow employees,

2015 was a year filled with major challenges for the HOERBIGER Group, but also a year in which we very successfully took advantage of growth opportunities and inspired the continued development of our company through strategic initiatives.

Our portfolio is tailored to attractive technological niche markets in the energy, automotive and industrial sectors, with balanced ratios. Once more, this proved to be a stable foundation for the Group.

Dr. Martin Komischke CEO and Chairman of the Executive Board HOERBIGER Holding AG Compression Technology: Investment in future growth

The unpredictable collapse of the price of crude oil in 2015 significantly impacted development in the Compression Technology Strategic Business Unit – in particular in North America, where investments in infrastructure for the production and transport of natural gas, which are closely tied to the production of shale oil, were scaled back drastically. Business operations were additionally adversely affected by the continued difficult political and economic environment in Latin America and Eastern Europe. Despite positive currency exchange rate effects in relation to the US dollar, the operating result fell short of our expectations. 20 21 CEO Statement

Our portfolio sustained us in 2015

In spite of this enormous economic strain, we took a first step toward establishing the new, An increase in sales of just 2.5 percent, from 1.088 billion euros to 1.115 billion euros, and strategically attractive Safety Solutions Business Segment by acquiring IEP Technologies, a drop in the EBIT margin from 10.6 to 6.4 percent, are certainly not the year-end results we LLC, Marlborough, Massachusetts, and invested in future growth with long-term vision. had in mind. The silver lining is that in 2015 we were able to maintain the previous year’s level of sales Drive Technology: Excellent performance thanks to our balanced portfolio and the stable position of the HOERBIGER Group. In view of the challenges we were forced to deal with in 2015, this is an exceptional The trend in the automotive industry, in contrast, was markedly positive. The world’s automotive performance. Our employees demonstrated outstanding commitment in every respect. markets posted continued growth. The Drive Technology Strategic Business Unit developed extremely positively in this Our engagement remains excellent environment. In 2015, the Strategic Business Unit successfully entered into a number of additional Our outstanding engagement scores show me just how much we can rely on HOERBIGER long-term supply agreements, especially in China. The volume of these newly acquired orders employees’ willingness to perform: an engagement figure of 64 percent clearly set us apart significantly surpassed the targets established in the strategic plan for the 2015 fiscal year. from the industry average in 2015. In the coming years, the new business gained in 2015 will safeguard added growth. This high level of engagement demonstrates that the people of HOERBIGER see challenges in a positive light, and that based on our corporate values – Pioneering Spirit, Courage, Hydraulic Systems: Development as expected Fairness and Closeness – we will continue to inspire motivation and team spirit in the future and, consequently, new innovations and new business ideas. In light of the challenging situation in the market, we are also very satisfied with the results in the Hydraulic Systems Business Division. We achieved sound growth rates, in particular in the existing business of the Compact Motion Technology Segment. Integrated in 2015, this supplies components for applications in mechanical engineering and medical technology, as well as for sport boats and recreational vehicles. In contrast, sales declined in the Roof Hydraulics Segment as a result of the decrease in demand for convertibles worldwide. 22 23 CEO Statement

Together, we have traveled a successful path

After more than 23 years of operational responsibility, I will step down as Chairman of the I would like to thank our business partners and customers for the confidence that you place Executive Board effective July 1, 2016 and assume a new role with the HOERBIGER Group, time and again in the development and consulting services of our employees, as well as in our becoming President of the Board of Directors. products and services. During all my years in operations, I always took a special interest in Important milestones during this time were the expansion of global corporate structures, the exchange and partnership with our customers. In my future capacity as President of the a consistent focus of the Strategic Business Units on high-sales technological niche markets Board of Directors, I will remain fully committed to ensuring that the HOERBIGER brand that met our stability criteria, and the development of new, cutting-edge business segments. continues to symbolize not only innovation and performance, but additionally – and more In 2004, we had set out to sustainably increase our sales of 607.8 million euros. And we importantly – proximity to the market and our customers. The Board of Directors of HOERBIGER accomplished this goal, despite the global economic crisis in 2009. Holding AG appointed Dr. Jürgen Zeschky to succeed me as CEO and Chairman of the Executive By focusing on performance-defining components that offer unique selling propositions, Board. I am delighted that in Dr. Zeschky we will have an accomplished individual at the helm which in turn make lasting contributions to our customers’ added value, our Strategic Business of the HOERBIGER Group, together with the Executive Board, to lead our continued path toward Units and Business Divisions gave the HOERBIGER Group a sustained competitive edge. success with a strong hand. In Business Development, we developed new business ideas and business segments with great success. I would like to thank my colleagues on the Executive Board for the excellent working relation- Corporate Human Resources has solidified and expanded its new role as a Business ship, which was always marked by mutual trust. In the decisions that we made together Partner in recent years. We have filled our succession positions with managers and specialists for the HOERBIGER Group in the past years, I was able at all times to rely on a strong and from within our own ranks. Our senior managers’ Success Profiles and the Performance extremely competent team on the Executive Board. Management System, which has now been rolled out throughout the Group, value, recognize, and reward individual performance more than ever. I also would like to thank the employees in the Corporate Functions of HOERBIGER Holding AG Thanks to garnering top rankings in international competitions year after year, for their expert support in the development and implementation of our strategic objectives, HOERBIGER is considered a benchmark in the B2B environment when it comes to Corporate which was always based on partnership, respect and integrity. The professional work Communications. delivered in recent years by the Corporate Functions gave me the confidence to hand over a well-honed organization on a solid foundation to Dr. Zeschky. I’m delighted about all this, but also grateful – to our senior managers and our employees. I am extremely grateful for the very close and constructive cooperation with the Board of Directors during all the years I held the office of CEO, and for the trust that our shareholders, and most notably our family shareholder Mrs. Christiana Hörbiger, and the entire Board of Trustees have placed in me. 24 25 CEO Statement

2016 will remain challenging – we will continue our course

The present fiscal year will again be filled with major challenges – especially in the Com- The order books of the Drive Technology Strategic Business Unit are well-stocked for 2016 and pression Technology Strategic Business Unit. We do not expect a fundamental turnaround the coming years as a result of contracts entered into in 2014 and 2015. We expect additional in crude oil prices in the near future. The political and economic environment of our growth momentum to come from the development and sales joint venture with Chengdu Service business is also unlikely to change in either the mature or the emerging markets. HAONENG Technology Co., Ltd., Chengdu, China, which took effect on March 1, 2016 under And yet, we will continue to grow in 2016. With our core competencies and our superb the name HAONENG HOERBIGER DriveTech (Shanghai) Co., Ltd (HHDTS). The joint venture resources, we will drive organic growth of the HOERBIGER Group and supplement our port- will cover the development, sale, and trade of synchronizer components and systems for folio with targeted, strategically well-balanced acquisitions. automobile transmissions in China. Financially, HOERBIGER remains in an outstanding position to do this. We are able to The Hydraulic Systems Business Division will continue to post growth in its core business. finance our growth initiatives from our strong cash flow and with a continued strong equity In the Loading Comfort Segment, the market launch of the innovative XETTO® loading and capital base. unloading system will contribute to sales and earnings for the first time in 2016. The deliberate and effective development of our employees and mentoring of our own In the medium and long term, our growth prospects are outstanding junior talent will ensure that our corporate culture – driven by our corporate values and the high level of engagement of the people of HOERBIGER – will also prevail in the future. The HOERBIGER Group has outstanding growth prospects in the medium and long term. Our growth is also due in no small part to the STREAM project that is now taking effect With the initiatives launched as part of the Excellence & Growth mission in our throughout the Group. Optimized processes, and in particular the precision and speed of our Strategic Business Units and Business Divisions, strong networks in Production and Procure- internal workflows, will play a vital role in our competitiveness going forward. In Production, ment, and effective yet lean Corporate Functions, we are in an excellent position. we have already decisively boosted our effectiveness and efficiency. STREAM is bound to In the Compression Technology Strategic Business Unit, innovative business models – achieve comparable successes in our process flows as well. the REE initiative in the Service Division is a great example – will allow us to cater even more strongly to the needs of our customers and develop new potential. Proceeding from the acquisition of IEP Technologies, LLC, we will further bolster safety technology and expand this new Business Segment. At the same time, the associated synergistic use of our capabilities in a new market that is largely independent of the energy sector is an investment in the stability of our portfolio. In January 2016, we were able to expand the range of services of the Safety Solutions Business Segment with the acquisition of Newson Gale, Nottingham, United Kingdom. Newson Gale specializes in solutions dedicated to eliminating uncontrolled discharge of static electricity and preventing ignition hazards in flammable and potentially explosive areas. With explosion venting specialist BRILEX, in April 2016 we added another brand to the HOERBIGER portfolio that is established in the safety technology field. 26 27 CEO Statement

Our market environment demands action

The current market environment, with fierce competitive pressure in the international markets and resulting narrow margins, forces us to take additional action. We must take care of our customers’ needs even more intensively than in the past. The key is to develop new business models that satisfy the needs of our customers, while expediting the planned growth of the HOERBIGER Group. If we then also succeed in developing greater market orientation – aided by sales functions staffed with outstanding technical experts – and expanding our Management Excellent in all areas, I anticipate major potential for a successful future of our Group.

Dr. Martin Komischke CEO and Chairman of the Executive Board HOERBIGER Holding AG 28 2015 29

HIGHLIGHTS Highlights

January Support for Kempten University

The HOERBIGER Group will be sponsoring lecture hall V 409 at Kempten University, Germany, for an initial period of five years. The HOERBIGER lecture hall is primarily a venue for lectures on electrical engineering, business administration, and mechanical engineering.

February “Jugend forscht”/“Schüler experimentieren”

Nine young researchers from the foothills of the Alps qualified for the Bavarian state competitions “Jugend forscht” and “Schüler experimentieren”. Six out of a total of 57 projects earned first place in the regional competition sponsored by HOERBIGER. Aside from the regional victories, the judges – among them this year also five-times regional winner and four-times state winner Max Burggraf – presented 22 additional awards. 30 March Board of Directors and Executive Board in Dubai and Kuwait May Sales office for Engine Solutions in China 31 During the first week of March, the Board of Trustees, Board of Directors and Executive In May, the Engine Solutions Business Segment opened a dedicated sales office in Suzhou, Board visited HOERBIGER Service Middle East FZE in Dubai and Kuwait, together with China. Through this office the Group will support the sales force in China while intensifying family shareholder Christiana Hörbiger. Personal talks with local management and its partnership with industrial engine manufacturers and operators in the fast-growing

employees, and visits to customers, conveyed a detailed impression of activities in the area. Asian markets. Highlights

April Apprentices inform about technical professions

To encourage young people to choose technical professions, the employers’ associations for the metalworking and electrical industries devised a special project. On a bus named the “InfoMobil” they travel across the state to tell students about job profiles in these industries in a practical context. The InfoMobil stopped at HOERBIGER in Oberstenfeld, Germany, in April. Four apprentices from the Drive Technology Strategic Business Unit introduced 152 students to attractive trades at HOERBIGER.

April HOERBIGER website is now in Russian too

The HOERBIGER corporate website went live in Russian, making it available in a total of eight languages. The new language version allows Russian-speaking customers and employees faster and more convenient access to product and corporate information.

April Girls’ Day May Project STREAM: Kick-off in Vienna

On April 23, HOERBIGER participated in Germany’s 135 HOERBIGER managers from eleven countries met in Vienna, Austria, from May 11 to 13 nationwide Girls’ Day for the 13th time: 13 students for the kick-off event of STREAM. The project, which had taken several months to prepare, between the ages of 11 and 17 learned about technical then began its roll-out through the Group. Its goal is to optimize corporate processes jobs open to them at the HOERBIGER Training Center and structures, standardize them across Strategic Business Unit and Business Division in Peiting. boundaries, and harmonize them based on a uniform IT infrastructure. 32 33 Highlights

June Tailor-made synchronizer system

With the ClassicLINE DCT-Type, HOERBIGER unveiled the world’s first synchronizer specifically for dual-clutch applications at the VDI Congress in Friedrichshafen, Germany. The unique design of the ClassicLINE DCT-Type optimizes all the features that are particularly relevant to dual-clutch transmissions: installation space, shifting speed, reduced noise, and shifting quality.

June Successful ACHEMA in Frankfurt am Main

HOERBIGER highlighted four products at ACHEMA, the world’s largest trade show for the petrochemical, process and chemicals industries in Frankfurt am Main, Germany. The zero-leakage XperSEAL reciprocating rod seal, the eHydroCOM compressor control system, the intelligent TriVAX™ actuator, and the new REE audit service offering drew big crowds at the booth.

June Human Resources: Worldwide Roadshow

On July 13 in Dubai, managers from the Middle East Africa (MEA) and Asia regions learned about current HR strategy topics and programs from Gerhard Wagner, Chief Human Resources Officer and a member of the Executive Board, and his managerial team. Previously, the sites in Munich, Vienna, Fort Lauderdale, and Deerfield Beach hosted the HR Roadshow. In total, more than 300 senior managers took part in these informational events.

June New Group structure pooling resources

To continue to best capitalize on the growth opportunities in the global markets, HOERBIGER changed the Group’s organizational structure effective June 1. The Compact Motion Technology Business Division was combined with the Roof Hydraulics and Loading Comfort Business Segments to form a new Hydraulic Systems Business Division. The Valve Automation Business Division was assigned to the Compression Technology Strategic Business Unit. The Transmission Comfort Business Segment was integrated into the Drive Technology Strategic Business Unit as the Commercial Vehicles Segment. Finally, the existing Automation Technology Strategic Business Unit was dissolved. June Operations International conference August 3rd HOERBIGER Soccer Cup takes place in Schongau in Dresden is key success factor A total of seven teams from four schools in Germany’s Weilheim-Schongau region faced off during the third HOERBIGER Soccer Cup. The team from Schongau’s Welfengymnasium 34 Some 90 operations managers from all the Strategic Business Units and Business Divisions 35 preparatory school came out on top and took home the HOERBIGER challenge cup. met in Dresden, Germany, from June 28 to July 1 to exchange ideas and experience on the status and continued development of Operations in the HOERBIGER Group. The standardization of technologies and processes, and the continuous pursuit of improvements, are key initiatives August 50 years of club history at the Penzberg location

that help the Group achieve growth. Highlights The company sports association at HOERBIGER’s Penzberg location in Germany was able to look back on half a century of successful history: 40 employees had founded the association on August 1, 1965. The board, members and friends of the club celebrated the milestone anniversary with a Bavarian curling tournament, followed by festivities.

August Historic Market in Schongau: coins for a good purpose

The excitement surrounding Schongau Summer was unabated even in the event’s 15th year. The summer fest was an attraction for locals from the foothills of the Alps and vacationers alike. The lively atmosphere extended to the HOERBIGER booth in the “Historic Market”, where visitors minted a total of 1,900 tin coins as souvenirs. The donations received in exchange amounted to around 1,400 euros and benefitted the St. Michael Integrated Kindergarten.

July 100,000 relief valves from Changzhou

In mid-2015, HOERBIGER (Valves) Changzhou Co. Ltd. in China shipped its hundred thousandth relief valve. This marked a key manufacturing milestone since the start of series production in 2009. HOERBIGER relief valves offer reliable protection from dangerous oil mist explosions in the crankcases of large-bore engines. August Topping-out ceremony at the new HOERBIGER Vienna site

On August 27 it was time to celebrate in Austria: the topping-out ceremony was held at the new HOERBIGER Vienna-Aspern site. The event marked an important milestone in the timely progress of the construction project, which is slated for occupancy in May 2016. Vienna-Aspern, Vienna’s Urban Lakeside, will be the combined location for approximately 500 employees who were previously spread across three sites in Vienna. 36 September 26 entry-level employees start their careers 37 In September, 26 young entry-level employees started their training at HOERBIGER's locations in Germany. In the coming years they will learn commercial and technical professions in the plants in Schongau, Altenstadt, Penzberg and Oberstenfeld. Four young men undergoing

a combined study/vocational training program are also among the apprentices. Highlights

September HOERBIGER acquires IEP Technologies

On September 1, 2015, HOERBIGER acquired internationally renowned explosion protection specialist IEP Technologies LLC, based in Marlborough, Massachusetts, USA. This acquisition made HOERBIGER one of the world’s leading providers of sophisticated safety and explosion protection technology for a broad range of industrial plant engineering applications.

September Anniversary in Canada: 10 years of HOERBIGER FineStamping

HOERBIGER FineStamping Inc. in Waterloo, Canada, celebrated its tenth anniversary. HOERBIGER invited all employees and their families to the anniversary celebration. The 170 guests also included Dave Jaworsky, Mayor of Waterloo. At the Waterloo site, HOERBIGER manufactures fine blanked parts for automatic transmissions.

September CTI Symposium in Shanghai

In mid-September, Shanghai, China, was a magnet for specialists from the world of transmissions. The CTI Symposium draws developers, suppliers, and buyers from around the globe. HOERBIGER was present with a booth of its own. As part of a presentation, the Group provided information on the influence of low-viscosity gearbox oil on the performance of synchronizers.

October Kick-off event for the EvoLET research program

More than 200 engine experts attended the kick-off event of the Evolutionary Large Engines Technology – EvoLET for short – research project at the Large Engines Competence Center at Graz University of Technology, Austria. The goal of the program is to develop next-generation combustion technologies for gas and dual-fuel engines. HOERBIGER is working with the university as a founding member and research partner. 38 October Health campaign in the USA November Vivid interest in HOERBIGER TriVAX™ 39 promotes breast cancer awareness The 2015 German Industrial Valve Trade Show (DIAM) in Bochum, Germany, was a smashing success for HOERBIGER. A large number of end users and equipment manufacturers took For the third time in a row, HOERBIGER employees worldwide supported Breast Cancer advantage of the opportunity to learn about the benefits of the HOERBIGER TriVAX™ valve

Awareness Month with personal donations. This is an international campaign held annually actuator, which combines maximum safety standards with extremely simple installation Highlights in October to increase awareness of the risks of breast cancer. and operation.

November MEDICA in Düsseldorf: trade show of superlatives

Attended by more than 130,000 visitors, MEDICA in Düsseldorf, Germany, is the uncontested leading international hub for medical technology. “Medical boards,” in which physicians as well as those responsible for commercial aspects have a say in investment decisions, were again a central topic in 2015. This is fine with HOERBIGER: The Group’s products offer a number of unique selling propositions that not only distinguish them from the competition technologically, but also make them attractive economically. November HOERBIGER Safety Solutions: first joint trade show presentation

At their first joint trade show presentation, IEP Technologies and HOERBIGER showcased their comprehensive explosion mitigation portfolio at the international schüttgut trade show in November Employee engagement has increased again: 64 percent Dortmund, Germany. They used the event as a backdrop to introduce IEP Technologies as a new Compared to last year, employee engagement in the HOERBIGER Group improved by one member of the HOERBIGER Group to an interested trade audience percentage point in 2015, to 64 percent. This is a very pleasing result in view of the very difficult market environment for the HOERBIGER Group, and it clearly exceeds the global industry average. 40 41 Highlights December Christiana Hörbiger awarded title of Honorary Senator

In an academic ceremony, Vienna University of Technology, Austria, conferred the title Honorary Senator (Senator h.c.) upon Mrs. Christiana Hörbiger on Friday, December 4, 2015. Christiana Hörbiger is the family shareholder of the HOERBIGER Group and Vice President of the HOERBIGER Foundation. The accolade honored her exceptional dedication to the University.

December Dr. Jürgen Zeschky becomes designated CEO

HOERBIGER announced an important step that sets the course for the future. Effective July 1, 2016, Dr. Martin Komischke, CEO and Chairman of the Executive Board since 2004, will become a member of the Board of Directors. Assuming the duties of Dr. Marcus Flubacher, he will serve as the Board’s President. Dr. Jürgen Zeschky was appointed to succeed Dr. Martin Komischke as CEO and Chairman of the Executive Board. 42 GROUP PROFILE 43 INCREASED

ENGAGEMENT Group Profile OVERCAME CHALLENGES

In 2015, HOERBIGER strove to launch new growth initiatives in all the Strategic Business Units and Business Divisions. With great dedication, our employees helped to ensure that we were able to systematically pursue our strategic targets, despite the challenges in our markets.

An important boost for the implementation of our growth objectives was the acquisition of IEP Technologies, LLC, effective September 1, 2015, and the associated development of the new Safety Solutions Business Segment in the Compression Technology Strategic Business Unit. The completion of the new HOERBIGER site in Vienna-Aspern, the consolidation of production in North America, which was associated with significant investments, and the expansion of the infrastructure of numerous service branches are other important steps in creating a long-term and effective competitive position for the Group. In the Drive Technology Strategic Business Unit, localization in China was consistently advanced. Additionally, a number of initiatives were launched under the motto “Beyond Synchro” that are geared to the vehicle drive trains of the future.

Project STREAM was defined by the Executive Board in 2014 to establish a modern, standardized, and accordingly efficient process landscape. In 2015 STREAM gained considerable traction as it entered the implementation phase. Some 140 employees from all the Strategic Business Units and Business Divisions analyzed and revised approximately 350 individual processes and reviewed the new workflows. A total of nine end-to-end process teams are working on STREAM. 44 “In financing our growth, we can 45 draw on strong cash flow and our sound equity capital base.” Group Profile Charles Friess Megatrends are driving long-term growth CFO and Deputy Chairman of the Executive Board HOERBIGER Holding AG Despite recent challenges, especially in the Compression Technology Strategic Business Unit, the HOERBIGER Group continues to generate stable growth in all the Strategic Business Units and Business Divisions.

Our growth is driven by three global megatrends:

Energy demand for the world’s population and the global economy will continue to rise. Despite presently low crude oil prices, natural gas will remain one of the most important global sources of energy, alongside a modestly growing share of renewable energies. Energy efficiency and emissions reduction will become increasingly important in the future. As a pioneer and trendsetter for key components used in machines and plants in the gas and process industries, this trend will continue to benefit HOERBIGER long-term.

Mobility of people will continue to rise, most notably in Asia and the emerging markets. This will benefit HOERBIGER in Drive Technology.

A third megatrend that comes with increasing prosperity is the growing worldwide need for safety. Companies that offer key technologies in the safety technology field, including HOERBIGER, have the best chances to continue to grow as a result of this megatrend. 46 47

Lasting success thanks to balanced portfolio Our Strategic Business Units and Business Divisions Group Profile

With the unique selling propositions of our products, systems and services, we make a lasting The Compression Technology and Drive Technology Strategic Business Units and the contribution to the added value of our customers in the oil, gas, and process industries, Hydraulic Systems Business Division are the operational units of the HOERBIGER Group. in mechanical and plant engineering, and in the automobile industry. In 2015, the Compression Technology Strategic Business Unit accounted for approximately 2015 confirmed just how important our balanced corporate portfolio and the stable 58 percent of corporate sales. The Drive Technology Strategic Business Unit provided positioning of our Strategic Business Units and Business Divisions in the energy, automotive approximately 32 percent of sales, and the Hydraulic Systems Business Division approximately and industrial sectors are for HOERBIGER’s stability and growth. 10 percent. Our portfolio helps us effectively pursue our strategic goals, develop our capabilities and potential, and take advantage of the opportunities in our markets for our growth plans, even Compression Technology Strategic Business Unit in difficult years. The products and solutions of the Compression Technology Strategic Business Unit are based on know-how and technologies that HOERBIGER has developed in reciprocating compressor valves over more than 120 years, starting with Hanns Hörbiger’s ground-breaking invention of Corporate portfolio of HOERBIGER Holding AG the steel plate valve. The success of the Business Unit has always been based on technological solutions that offer big benefits for customers.

OEM DIVISION The OEM Division includes the Compressor Solutions, Serial Compressors, Safety Solutions, 43 % Energy and Engine Solutions Business Segments.

38 % Compressor Solutions Business Segment Automotive In view of the large number of reciprocating compressors operating globally in gas compression, 19 % the oil, gas, and process industries are traditionally the most important sales markets for the Industry Compression Technology Strategic Business Unit. For 120 years the Compression Technology Strategic Business Unit has set standards in this Business Segment with durable valves, highly efficient control units, rings and packings.

Serial Compressors Business Segment Status date: 2015 Reciprocating compressors are also used in refrigeration and air-conditioning systems as well as in the automobile industry. The Serial Compressors Business Segment develops valve heads and reed valves for these compact compressors.

Engine Solutions Business Segment The portfolio of the Engine Solutions Segment and of the Altronic brand includes innovative engine controls, gas valves, actuators, and ignition systems for industrial engines used for energy generation and for powering ships, locomotives, and compressors. 48 The HOERBIGER Brand 49 The people of HOERBIGER shape the identity and character of the Group

The people and their overall performance goal – The HOERBIGER Forum in Vienna, Austria, “Performance counts” – shape the identity which we will open in June 2016, and its and character of the HOERBIGER brand around innovative multimedia applications is another

the globe. building block of a brand world that is driven Group Profile Safety Solutions Business Segment by the performance goal of HOERBIGER’s The wear-free explosion protection valves launched by HOERBIGER as early as the 1950s, HOERBIGER has continuously enhanced the employees. and continually advanced since, are used around the globe as safety valves in large-bore value of the brand over the past ten years. engines and compressors, in the intake and exhaust systems of gas and dual-fuel engines, and as passive protection in the processing of flammable dusts. The HOERBIGER website – www.hoerbiger.com – The acquisitions of IEP Technologies in September 2015, Newson Gale in January 2016, is considered a benchmark for innovative Internet and BRILEX in April 2016 have made HOERBIGER a worldwide leading provider of technologies communication worldwide. Exciting reports dedicated to explosion detection and suppression, and to the prevention of ignition and features in the HOERBIGER Yearbook and hazards of static electricity. HOERBIGER customer magazine @MOTION aid in effectively positioning the strategy and Valve Automation Business Segment performance of HOERBIGER's employees By consistently cultivating the market, the Valve Automation Business Segment has estab- and of the products and services that they develop. lished a leading position in piezo valve technology. Piezoelectric positioner modules made by HOERBIGER are used worldwide as key components of positioners for precise control of valves. The top-ranking products of the Valve Automation Business Segment at present are the electrohydraulic valve actuators of the TriVAX™ product family. Through the intelligent safety functions built into products, the Valve Automation Business Segment has earned the trust of customers from the oil, gas, and process industries, in power plants, and in the water and wastewater industry.

SERVICE DIVISION Worldwide, HOERBIGER has more than 90 Service locations in 52 countries. The Service portfolio centers around solutions that boost the performance, reliability and economic efficiency of reciprocating compressors, natural gas powered engines, and turbines.

PRODUCTION DIVISION The Production Division and its 14 manufacturing plants ensure that HOERBIGER can guarantee short lead times worldwide, at consistently high quality standards. The performance of Production is one of the success factors for the effectiveness and efficiency of the Compression Technology Strategic Business Unit. 50 Our Vision Our Business Model 51 We set Standards Performance-defining Components

It is from our heritage and our values, our Performance-defining components are the techno- corporate ambition, our dedication, and our logical foundation for our products, systems, and performance commitment that we derive services. Through their unique selling propositions, the vision of the HOERBIGER Group: we provide a lasting contribution to the added value We set standards. of our customers – from OEMs to end users. These components form the core of the HOERBIGER Drive Technology Strategic Business Unit brand and the starting point of the business model. Around the world, the Drive Technology Strategic Business Unit is considered the prime partner in the automotive industry for the development and production of synchronizers used Our Mission Our products – components, systems, and services – in manual and automated transmissions, including dual-clutch transmissions. Its customers are performance-defining. In compressors, EXCELLENCE & GROWTH include virtually all global automobile groups and transmission manufacturers. industrial engines, automobile transmissions, and multifaceted mechanical and plant engineering Core competencies of the Strategic Business Unit are the development and design of synchro- applications, they are key to efficiency and effective­ Our Mission – Excellence & Growth – nizers, friction systems, and hub systems for the automobile industry. Synchronizers are ness, reliability, and environmental compatibility. ties our corporate ambition to our performance-defining key components used in modern manual transmissions (MTs), automated long-term growth targets. manual transmissions (AMTs), and dual-clutch transmissions (DCTs). They are responsible for smooth and comfortable gear shifting in automobiles and commercial vehicles. PRODUCT EXCELLENCE Our products combine customer value With its expertise in pneumatic gearshift support systems for trucks and buses, the Transmission and unique selling propositions. Comfort Segment has formed the core of the new Commercial Vehicle Segment since it was assigned in 2015 from the former Automotive Comfort Systems Business Division to the SERVICE EXCELLENCE Drive Technology Strategic Business Unit. Our Service combines technology and efficiency. Production plants of the Drive Technology Business Unit are located in Schongau, Oberstenfeld and Penzberg in Germany, Changzhou in China, and Waterloo in Canada. MANAGEMENT EXCELLENCE The development center in Peiting, Germany, is equipped with state-of-the-art test We develop business ideas and turn benches for synchronizers and friction linings. them into long-term successes.

OPERATIONAL EXCELLENCE Our operational processes and technologies VISION are benchmarks. We set Standards

MISSION Performance-defining Components EXCELLENCE & GROWTH

PEOPLE AND VALUES Pioneering Spirit | Courage | Fairness | Closeness

HERITAGE Hanns Hörbiger | Alfred Hörbiger | Martina Hörbiger 52 53

Hydraulic Systems Business Division Group Profile

In an effort to take fullest advantage of the growth opportunities in global markets, The most significant production plant of the Hydraulic Systems Business Division is the HOERBIGER in June 2015 combined the Compact Motion Technology Business Segment from Bolesławiec plant in Poland, where the components for HOERBIGER roof hydraulics, the Type the former Automation Technology Strategic Business Unit with the Roof Hydraulics and 4 and Type 6 series drive systems, and hydraulic cylinders and tubing are produced. The Loading Comfort Business Segments from the former Automotive Comfort Systems Business location in Barbing, Germany, specializes in microfluidics and primarily supplies components Division to form a new Hydraulic Systems Business Division. and systems for medical technology. Hydraulic power units for press brakes and special hydraulic solutions, such as brakes Compact Hydraulics Business Segment for wind power plants, are manufactured in Altenstadt in Germany and Wuxi in China. The All activities related to hydraulic roof drives, the development and sale of lifting columns for existing manufacturing location in Auburn, Alabama, USA, will be turned into a technology operating tables, marine and recreational vehicle applications, and components for hydraulic center for the development of hydraulics solutions for customers from North America. restraint systems are covered under the Compact Hydraulics Business Segment. For more than three decades, compact hydraulic drives made by HOERBIGER have been the performance-defining components for automatically opening and closing convertible tops. In medical technology, HOERBIGER is a premium supplier of compact hydraulic lifting columns used worldwide as drive systems for operating tables. In the field of marine and recreational vehicle applications and hydraulic restraint systems for amusement rides, HOERBIGER supplies performance-defining hydraulic actuators.

Loading Comfort Business Segment In the Loading Comfort Business Segment, HOERBIGER is working on future-oriented comfort solutions that allow easy transport of heavy loads. In 2016, the XETTO® loading and unloading aid will be launched as the first series product of the Loading Comfort Business Segment.

Machinery Business Segment The Machinery Business Segment combines all development and sales activities for hydraulic applications in the press brake market. With complete electrohydraulic drives that are compact and efficient, in recent years HOERBIGER has laid an innovative technological foundation for the development of press brakes that are not only modern but also energy-saving. 54 Our Stability Criteria 55 “IMarket LIKE Positioning, BEINGTechnology, Self-Reliance and Profitability AN ENTREPRENEUR

Market Self-reliance Business Development as a success factor WITHINpositioning THE Group Profile

In the coming years, the HOERBIGER Group will experience continued growth, both organically, by continually developing our core competencies and capabilities, and through COMPANY.” acquisitions, by acquiring companies whose portfolio fits our strategic objectives. HOERBIGER has the objective of being first or The Group has a mandate to remain self-reliant Corporate Business Development supports this approach by developing and implementing second in the niche markets in which the company and to be independent and sustainably positioned. appropriate initiatives and projects. It reviews technical innovations, new business ideas, is strategically represented. Our products and We therefore consistently make sure that our and growth potential in the market to determine whether, and to what extent, these can help services must therefore offer unique selling portfolio and our relationships with customers meet the future requirements of our markets and customers, satisfying our growth targets propositions that clearly distinguish them from and suppliers alike are based on several pillars. while respecting the stability criteria of the Group. the competition.

Organic growth At HOERBIGER, organic growth has always been driven by technical innovation and inspiration from the ranks of the employees. Business Development assembles and professionally interprets ideas that originate in-house. Technology Profitability The objective is to strengthen existing business activities and use new business ideas and new business models to continually shape the future.

Growth through acquisition Growth through the deliberate acquisition of companies whose technology and market When developing new products and services, Each entity in the HOERBIGER Group must be presence complement our existing core businesses in related business segments is just as we focus on the core competencies of the able to support itself. Senior managers are important as internal, organic growth. Strategic Business Units: fluid mechanics, responsible for the long-term profitability of their Acquisition initiatives focus on broadening and strengthening the technological core thermodynamics, and gas dynamics in compres- entities. The criterion is the EBIT margin: competencies, and specifically on expanding the product and service portfolio. This is closely sion and engine technology; hydraulics, the operating income in proportion to sales. tied to the goal of bolstering the presence in the market to achieve a sustainable position in pneumatics, and piezo technology in automation the OEM and Service business. Long-term, every acquisition must also contribute to increasing technology; and tribology and metal forming in the company’s value. drive technology. These core competencies also encompass electronics, sensors, and software. 54 OurStrong Stability concepts for Criteria tomorrow’s growth: in addition to a keen sense 55 Marketof new technologiesPositioning, Technology, and business Self-Reliance models, Sigune and Suttner’sProfitability particular strengths lie in translating promising ideas into reality with a well thought-out plan.

Sigune Suttner already had several years of international professional

Market experience in the automotive, shipbuildingSelf-reliance and petrochemicals industries Business Development as a success factor positioningunder her belt when she first came into contact with HOERBIGER: Group Profile

In the coming years, the HOERBIGER Group will experience continued growth, both “At the time, I was looking specifically for a medium-sized company with a global footprint organically, by continually developing our core competencies and capabilities, and through and good prospects for development for my planned part-time MBA program.” acquisitions, by acquiring companies whose portfolio fits our strategic objectives. HOERBIGER has the objective of being first or The Group has a mandate to remain self-reliant Corporate Business Development supports this approach by developing and implementing This was a perfect fit for HOERBIGER, given that the company combines second in the niche markets in which the company and to be independent and sustainably positioned. appropriate initiatives and projects. It reviews technical innovations, new business ideas, the financial strength and organizational structure of a global group with the is strategically represented. Our products and We therefore consistently make sure that our and growth potential in the market to determine whether, and to what extent, these can help energy, flexibility and long-term orientation of a medium-sized firm. services must therefore offer unique selling portfolio and our relationships with customers meet the future requirements of our markets and customers, satisfying our growth targets propositions that clearly distinguish them from and suppliers alike are based on several pillars. while respecting the stability criteria of the Group. Entrepreneurial spirit runs in Sigune Suttner‘s veins: right after graduating the competition. from high school, she founded a start-up company with a partner – the Organic growth goal was to recultivate fallow farmland in Eastern Europe to grow corn for At HOERBIGER, organic growth has always been driven by technical innovation and inspiration bioethanol­ production. She then studied business administration, majoring from the ranks of the employees. Business Development assembles and professionally in entrepreneurship and supply chain management. After graduating, interprets ideas that originate in-house. Technology­Suttner was hired by a manufacturer ofProfitability metal alloy foams, which are used The objective is to strengthen existing business activities and use new business ideas and in particulate filters. new business models to continually shape the future. Sigune Suttner Sigune Suttner joined HOERBIGER in April 2014 – as a manager in Corporate Growth through acquisition Business Development. “Over the past two years, we have been able to fill Growth through the deliberate acquisition of companies whose technology and market our innovation pipeline with internal growth projects and acquisitions. When developing new products and services, Each entity in the HOERBIGER Group must be presence complement our existing core businesses in related business segments is just as After this scouting phase, I look forward to seeing the promising ideas through we focus on the core competencies of the able to support itself. Senior managers are important as internal, organic growth. to implementation, in close cooperation with all the Strategic Business Units Strategic Business Units: fluid mechanics, responsible for the long-term profitability of their Acquisition initiatives focus on broadening and strengthening the technological core and Business Divisions,” says Suttner. In the medium term, she can well image thermodynamics, and gas dynamics in compres- entities. The criterion is the EBIT margin: competencies, and specifically on expanding the product and service portfolio. This is closely bringing an innovative project at the operational level to fruition. sion and engine technology; hydraulics, the operating income in proportion to sales. tied to the goal of bolstering the presence in the market to achieve a sustainable position in pneumatics, and piezo technology in automation the OEM and Service business. Long-term, every acquisition must also contribute to increasing “I like being an entrepreneur within the company. Breaking away from old mindsets and technology; and tribology and metal forming in the company’s value. reconsidering the logic of existing markets – that’s my passion.” drive technology. These core competencies also encompass electronics, sensors, and software. 54 Our Stability Criteria 55 Market Positioning, Technology, Self-Reliance and Profitability

Market Self-reliance Business Development as a success factor positioning Group Profile

In the coming years, the HOERBIGER Group will experience continued growth, both organically, by continually developing our core competencies and capabilities, and through acquisitions, by acquiring companies whose portfolio fits our strategic objectives. HOERBIGER has the objective of being first or The Group has a mandate to remain self-reliant Corporate Business Development supports this approach by developing and implementing second in the niche markets in which the company and to be independent and sustainably positioned. appropriate initiatives and projects. It reviews technical innovations, new business ideas, is strategically represented. Our products and We therefore consistently make sure that our and growth potential in the market to determine whether, and to what extent, these can help services must therefore offer unique selling portfolio and our relationships with customers meet the future requirements of our markets and customers, satisfying our growth targets propositions that clearly distinguish them from and suppliers alike are based on several pillars. while respecting the stability criteria of the Group. the competition.

Organic growth At HOERBIGER, organic growth has always been driven by technical innovation and inspiration from the ranks of the employees. Business Development assembles and professionally interprets ideas that originate in-house. Technology Profitability The objective is to strengthen existing business activities and use new business ideas and new business models to continually shape the future.

Growth through acquisition Growth through the deliberate acquisition of companies whose technology and market When developing new products and services, Each entity in the HOERBIGER Group must be presence complement our existing core businesses in related business segments is just as we focus on the core competencies of the able to support itself. Senior managers are important as internal, organic growth. Strategic Business Units: fluid mechanics, responsible for the long-term profitability of their Acquisition initiatives focus on broadening and strengthening the technological core thermodynamics, and gas dynamics in compres- entities. The criterion is the EBIT margin: competencies, and specifically on expanding the product and service portfolio. This is closely sion and engine technology; hydraulics, the operating income in proportion to sales. tied to the goal of bolstering the presence in the market to achieve a sustainable position in pneumatics, and piezo technology in automation the OEM and Service business. Long-term, every acquisition must also contribute to increasing technology; and tribology and metal forming in the company’s value. drive technology. These core competencies also encompass electronics, sensors, and software. 56 The Executive Board 57

The Executive Board is responsible for the ope- Along with Dr. Martin Komischke being rational management of the HOERBIGER Group. appointed President of the Board of Directors of The Executive Board represents the Group to HOERBIGER Holding AG effective July 1, 2016, the public, customers and business partners. Dr. Jürgen Zeschky was appointed his successor as CEO and Chairman of the Executive Board.

The Executive Board comprises five members: Dr. Zeschky joined the HOERBIGER Group on Group Profile the Chief Executive Officer (CEO), the Chief January 1, 2016 and will assume the office of Financial Officer (CFO), the Chief Human CEO on July 1, 2016. Resources Officer (CHRO), and the CEOs of the Compression Technology and Drive Technology Dr. Jürgen Zeschky was born in 1960. After Strategic Business Units. graduating in mechanical engineering, he earned his doctorate at the Institute of Turbo- Within the scope of its operational responsibilities, machinery of RWTH Aachen. He subsequently the Executive Board is in charge of ensuring held various managerial functions at leading that new products, services, and new business industrial firms in Germany and the USA. models fit the strategic orientation of the HOERBIGER Group as agreed between the Board of Directors and the Executive Board, and satisfy the stability criteria set for the Group.

HOERBIGER Executive Board (December 31, 2015). From left to right: 2, 3, 1, 5, 4

1 Dr. Martin Komischke 4 Johann Hipfl CEO and Chairman of the Executive Board CEO of the Compression Technology Born 1957 Strategic Business Unit Chairman of the Executive Board since 2004; Born 1954 previously, from 1996 onward, a member of the Member of the Executive Board Executive Board and CEO of the Drive Technology since 2007 Strategic Business Unit 5 Thomas Englmann 2 Charles Friess CEO of the Drive Technology CFO and the CEO’s deputy on the Strategic Business Unit Executive Board Born 1968 Born 1956 Member of the Executive Board CFO of the HOERBIGER Group since 1996 since 2014

3 Gerhard Wagner Chief Human Resources Officer Born 1962 Member of the Executive Board since 2012 58 “We have good people and need the right individuals. Growth starts with HOERBIGER is a great place to work. This is because HOERBIGER recognizes, promotes, 59 people who accept change as a challenge, develop ideas, and translate these and respects individual performance. Every employee finds opportunities at HOERBIGER to continue to develop, both professionally and personally – especially during years filled with into strategies and ultimately into success.” major challenges.

Voice for Excellence: outstanding engagement

All of this would have been unthinkable without the commitment to performance and the

high level of engagement of the HOERBIGER Group’s 6,858 employees worldwide. Group Profile We are proud to have improved the engagement score in the HOERBIGER Group by another percentage point, to 64 percent, in 2015. Gerhard Wagner Chief Human Resources Officer This is an excellent rating by international standards and places us clearly above the and Member of the Executive Board global industry average. HOERBIGER Holding AG

Engagement: Well on the way in 2015

57 % Global industry average

64 % HOERBIGER total

45% 65% 30%

Performance / best employers zone Neutral zone Uncertainty zone 0% 100% Destructive zone

Source: Aon Hewitt Employee Research Database 10 20 30 40 50

60 Employees 61 “TRACKING At the end of 2015, the Compression Technology 500 Strategic Business Unit had 4,186 employees, the Drive Technology Strategic Business Unit had 1,524 DOWN TALENT employees, 508 worked in the Hydraulic Systems Business Division, and 272 in corporate functions. 1000

Our team was supported by external contractors. Group Profile WITHWe appreciate the talentOUR from within our own ranks As of December 31, 2015, HOERBIGER employed 1500 a total of 368 people from outside staffing firms: HOERBIGER strives primarily to recruit internal talent to fill leadership positions. 287 in the Compression Technology Strategic Business DASHBOARD.The key is to develop internal employees in their personal” careers to the point where a Unit, 33 in the Drive Technology Strategic Business majority of management positions can be filled by junior managers from within the Group. 2000 Unit, 46 in the Hydraulic Systems Business Division, In 2014, HOERBIGER had set the goal of filling 70 to 80 percent of all managerial positions and two in corporate functions. in-house. In 2015 this target was met, with an internal recruitment rate of 73 percent. Well over half of all newly created or vacated managerial positions were filled by successful 2500 graduates of the management programs offered within the Group: the Business Leadership Program, the Harvard Breakthrough Leadership Program, and the Foundation of Leadership Program. 3000 Mission Statement and Success Profile – leadership with clear objectives

3500 It is of crucial importance for the success of the Group that every senior manager and every employee knows exactly how their responsibilities and goals contribute to the success of the company. Proceeding from the strategic objectives of the Group, the Mission Statement transparently 4000 outlines for every manager the expectations that are tied to the particular leadership position, along with specific goals and key performance indicators (KPIs). The Mission Statement forms an essential part of the Success Profile that is developed for 4500 every leadership function within the HOERBIGER Group. In addition to the Mission Statement, it also encompasses professional requirements as well as the Excellence Behaviors derived for senior managers from our Mission.

5000 Employees by Strategic Business Unit Compression Technology Drive Technology Hydraulic Systems 5500

Corporate Functions

Temporary employees by Strategic Business Units 6000 Compression Technology Drive Technology Hydraulic Systems

Corporate Functions 6500

Status date: December 31, 2015 10 20 30 40 50

60 Employees Carlo Van Praet joined HOERBIGER in mid-2014. The Belgian initially 61 worked at the corporate headquarters in Zug as Corporate Manager At the end of 2015, the Compression Technology 500 Organization Development & Talent (OD & T). Today, he is Strategic Business Unit had 4,186 employees, the Drive Technology Strategic Business Unit had 1,524 Global Head of Compensation & Benefits in Zug. employees, 508 worked in the Hydraulic Systems Business Division, and 272 in corporate functions. 1000 In 2015, Van Praet’s work focused on the development of programs to identify and train junior managers.

Our team was supported by external contractors. Group Profile We appreciate the talent from within our own ranks As of December 31, 2015, HOERBIGER employed 1500 One important tool in these efforts is the Global Talent Dashboard, which is a total of 368 people from outside staffing firms: HOERBIGERavailable strives primarily online to to all recruit top executives internal talent of the to Group. fill leadership positions. 287 in the Compression Technology Strategic Business The key is to develop internal employees in their personal careers to the point where a Unit, 33 in the Drive Technology Strategic Business “majorityIn 2015, ofthe management Global Talent positions Dashboard can became be filled a keyby junior tool in themanagers development from within of talent the Group. 2000 Unit, 46 in the Hydraulic Systems Business Division, at HOERBIGERIn 2014, HOERBIGER,” Carlo Van had Praet set explains.the goal of“It filling also provides 70 to 80 ourpercent senior of managers all managerial with positions and two in corporate functions. in-house.important In statistical 2015 this information target was met, on topics with anthat internal are important recruitment for the rate company’s of 73 percent. success Welland growth,over half such of all as newly succession created planning or vacated and managerial employee engagement positions were data.” filled by successful 2500 graduates of the management programs offered within the Group: the Business Leadership Program, theBased Harvard on theBreakthrough key performance Leadership indicators Program, (KPIs) and developed the Foundation by Corporate of Leadership Program.Human Resources to assess leadership qualities for management functions, 3000 the Global Talent Dashboard provides essential information that allows ­employees who show talent and potential for demanding managerial tasks Mission Statement and Success Profile – leadership with clear objectives to be developed using tailor-made personal advancement programs.

3500 It is of crucial importance for the success of the Group that every senior manager and every employee knows exactly how their responsibilities and goals contribute to the success of the company. Carlo Van Praet Proceeding from the strategic objectives of the Group, the Mission Statement transparently 4000 outlines for every manager the expectations that are tied to the particular leadership position, along with specific goals and key performance indicators (KPIs). The Mission Statement forms an essential part of the Success Profile that is developed for 4500 every leadership function within the HOERBIGER Group. In addition to the Mission Statement, it also encompasses professional requirements as well as the Excellence Behaviors derived for senior managers from our Mission.

5000 Employees by Strategic Business Unit Compression Technology Drive Technology Hydraulic Systems 5500

Corporate Functions

Temporary employees by Strategic Business Units 6000 Compression Technology Drive Technology Hydraulic Systems

Corporate Functions 6500

Status date: December 31, 2015 10 20 30 40 50

60 Employees 61

At the end of 2015, the Compression Technology 500 Strategic Business Unit had 4,186 employees, the Drive Technology Strategic Business Unit had 1,524 employees, 508 worked in the Hydraulic Systems Business Division, and 272 in corporate functions. 1000

Our team was supported by external contractors. Group Profile We appreciate the talent from within our own ranks As of December 31, 2015, HOERBIGER employed 1500 a total of 368 people from outside staffing firms: HOERBIGER strives primarily to recruit internal talent to fill leadership positions. 287 in the Compression Technology Strategic Business The key is to develop internal employees in their personal careers to the point where a Unit, 33 in the Drive Technology Strategic Business majority of management positions can be filled by junior managers from within the Group. 2000 Unit, 46 in the Hydraulic Systems Business Division, In 2014, HOERBIGER had set the goal of filling 70 to 80 percent of all managerial positions and two in corporate functions. in-house. In 2015 this target was met, with an internal recruitment rate of 73 percent. Well over half of all newly created or vacated managerial positions were filled by successful 2500 graduates of the management programs offered within the Group: the Business Leadership Program, the Harvard Breakthrough Leadership Program, and the Foundation of Leadership Program. 3000 Mission Statement and Success Profile – leadership with clear objectives

3500 It is of crucial importance for the success of the Group that every senior manager and every employee knows exactly how their responsibilities and goals contribute to the success of the company. Proceeding from the strategic objectives of the Group, the Mission Statement transparently 4000 outlines for every manager the expectations that are tied to the particular leadership position, along with specific goals and key performance indicators (KPIs). The Mission Statement forms an essential part of the Success Profile that is developed for 4500 every leadership function within the HOERBIGER Group. In addition to the Mission Statement, it also encompasses professional requirements as well as the Excellence Behaviors derived for senior managers from our Mission.

5000 Employees by Strategic Business Unit Compression Technology Drive Technology Hydraulic Systems 5500

Corporate Functions

Temporary employees by Strategic Business Units 6000 Compression Technology Drive Technology Hydraulic Systems

Corporate Functions 6500

Status date: December 31, 2015 62 Our Heritage and our Values 63 “WHAT IS

With his development of what at the time was a For more than a century, HOERBIGER has been YOURhighly innovative steel plate valve,HOERBIGER Hanns Hörbiger shaped by the pioneering spirit of Hanns in 1895 laid the foundation for the present Group. Hörbiger, the entrepreneurial courage of Alfred This development furthered the evolution of blast and Martina Hörbiger, its proximity to customers, furnace technology and prepared the way for and its fairness toward business partners and

high-pressure chemistry. Hanns Hörbiger’s employees. Our corporate values – Pioneering Group Profile Corporate compliance is indispensable at HOERBIGER ADVENTURE?” son Alfred started the in-house production of Spirit, Courage, Fairness and Closeness – The Compliance Initiative that was given top priority by the Executive Board continued valves in Vienna-Simmering in 1931. In the are the direct result of our heritage. in 2015. Complying with statutory provisions and maintaining ethical conduct pose major years after the end of the Second World War, challenges in many regions of the world. HOERBIGER faces this challenge with a zero- his wife ­Martina Hörbiger managed to resume tolerance policy for violations. the ­company’s international relationships. Worldwide, more than 25 compliance training sessions were conducted in 2015 for employees from all departments and all levels of management. In addition to compliance in general, the training focused on compliance with competition law and export control regulations. The sessions all required attendance in person. The effort is worthwhile, and gives employees and compliance experts an opportunity to discuss specific challenges face-to-face. The Compliance Initiative is designed to provide the assistance and confidence employees need to make fast yet irreproachable decisions in everyday situations. In addition to the training Pioneering sessions, Corporate Audit staff are available at any time for information on everything Courage Fairness Closeness ­related to compliance. Spirit When it comes to personal commitment to the compliance goals, the Executive Board and senior managers lead by example. Compliance is a prerequisite for participation in bonus programs for senior managers. Every year, all top managers personally review and report on the compliance situation in their respective areas of responsibility. Overcoming your Taking carefully Toward employees, Worldwide presence, own boundaries ­weighed risks customers, suppliers familiarity with all HOERBIGER is looking for modern adventurers  Approaching new Taking responsibility and all other business cultures tasks without already and seeing the job partners Knowing the Our corporate values Pioneering Spirit and Courage are a common thread running through knowing the solution through even in customers and difficult situations their needs the success story of the HOERBIGER Group. We offer attractive development opportunities to individuals who develop innovative technological solutions and new business ideas through creativity, know-how, commitment to performance, and high personal standards. 62 OurFalk Daubner Heritage was hired and by our HOERBIGER Values in 2012 as Corporate Manager 63 Organization Development & Talent (OD & T). In 2015, he became Corporate HR Manager Employer Branding & University Recruiting, With his development of what at the time was a For more than a century, HOERBIGER has been highlyand ininnovative 2016 steeladditionally plate valve, Hannsassumed Hörbiger the positionshaped by of the Recruiting pioneering spirit Manager of Hanns for inEurope, 1895 laid thethe foundation Middle forEast, the present and Africa. Group. Hörbiger, the entrepreneurial courage of Alfred This development furthered the evolution of blast and Martina Hörbiger, its proximity to customers, furnace technology and prepared the way for and its fairness toward business partners and Under the motto “The HOERBIGER Adventure,” Falk Daubner and his high-pressure chemistry. Hanns Hörbiger’s employees. Our corporate values – Pioneering Group Profile Corporate compliance is indispensable at HOERBIGER colleagues in Corporate Human Resources developed a new personnel son Alfred started the in-house production of Spirit, Courage, Fairness and Closeness – advertising concept to advance HOERBIGER as an employer brand. The Compliance Initiative that was given top priority by the Executive Board continued valves in Vienna-Simmering in 1931. In the are the direct result of our heritage. in 2015. Complying with statutory provisions and maintaining ethical conduct pose major years after the end of the Second World War, “The new advertisements are tailored to the character and nature of the HOERBIGER brand,” challenges in many regions of the world. HOERBIGER faces this challenge with a zero- his wife ­Martina Hörbiger managed to resume says Falk Daubner. “The focus of the campaign lies on pioneering spirit and courage, tolerance policy for violations. the ­company’s international relationships. combined with the personal experiences of HOERBIGER employees.” Worldwide, more than 25 compliance training sessions were conducted in 2015 for employees from all departments and all levels of management. In addition to compliance An example is the ad that tells the story of Alexandra Wittmann. in general, the training focused on compliance with competition law and export control regulations. Alexandra Wittmann joined HOERBIGER in 2011 as Controller for the Western The sessions all required attendance in person. The effort is worthwhile, and gives Europe service region. Her outstanding performance earned her an invitation employees and compliance experts an opportunity to discuss specific challenges face-to-face. to the HOERBIGER Business Leadership Program – a customized development The Compliance Initiative is designed to provide the assistance and confidence employees program for senior managers. need to make fast yet irreproachable decisions in everyday situations. In addition to the training sessions, Corporate Audit staff are available at any time for information on everything Pioneering Today, AlexandraCourage Wittmann is responsibleFairness for Controlling across Closenessan entire ­related to compliance. Spirit Business Division. And her adventure continues. When it comes to personal commitment to the compliance goals, the Executive Board and Falk Daubner & Alexandra Wittmann senior managers lead by example. Compliance is a prerequisite for participation in bonus programs for senior managers. Every year, all top managers personally review and report on the compliance situation in their respective areas of responsibility. Overcoming your Taking carefully Toward employees, Worldwide presence, own boundaries ­weighed risks customers, suppliers familiarity with all HOERBIGER is looking for modern adventurers  Approaching new Taking responsibility and all other business cultures tasks without already and seeing the job partners Knowing the Our corporate values Pioneering Spirit and Courage are a common thread running through knowing the solution through even in customers and difficult situations their needs the success story of the HOERBIGER Group. We offer attractive development opportunities to individuals who develop innovative technological solutions and new business ideas through creativity, know-how, commitment to performance, and high personal standards. 62 Our Heritage and our Values 63

With his development of what at the time was a For more than a century, HOERBIGER has been highly innovative steel plate valve, Hanns Hörbiger shaped by the pioneering spirit of Hanns in 1895 laid the foundation for the present Group. Hörbiger, the entrepreneurial courage of Alfred This development furthered the evolution of blast and Martina Hörbiger, its proximity to customers, furnace technology and prepared the way for and its fairness toward business partners and

high-pressure chemistry. Hanns Hörbiger’s employees. Our corporate values – Pioneering Group Profile Corporate compliance is indispensable at HOERBIGER son Alfred started the in-house production of Spirit, Courage, Fairness and Closeness – The Compliance Initiative that was given top priority by the Executive Board continued valves in Vienna-Simmering in 1931. In the are the direct result of our heritage. in 2015. Complying with statutory provisions and maintaining ethical conduct pose major years after the end of the Second World War, challenges in many regions of the world. HOERBIGER faces this challenge with a zero- his wife ­Martina Hörbiger managed to resume tolerance policy for violations. the ­company’s international relationships. Worldwide, more than 25 compliance training sessions were conducted in 2015 for employees from all departments and all levels of management. In addition to compliance in general, the training focused on compliance with competition law and export control regulations. The sessions all required attendance in person. The effort is worthwhile, and gives employees and compliance experts an opportunity to discuss specific challenges face-to-face. The Compliance Initiative is designed to provide the assistance and confidence employees need to make fast yet irreproachable decisions in everyday situations. In addition to the training Pioneering sessions, Corporate Audit staff are available at any time for information on everything Courage Fairness Closeness ­related to compliance. Spirit When it comes to personal commitment to the compliance goals, the Executive Board and senior managers lead by example. Compliance is a prerequisite for participation in bonus programs for senior managers. Every year, all top managers personally review and report on the compliance situation in their respective areas of responsibility. Overcoming your Taking carefully Toward employees, Worldwide presence, own boundaries ­weighed risks customers, suppliers familiarity with all HOERBIGER is looking for modern adventurers  Approaching new Taking responsibility and all other business cultures tasks without already and seeing the job partners Knowing the Our corporate values Pioneering Spirit and Courage are a common thread running through knowing the solution through even in customers and difficult situations their needs the success story of the HOERBIGER Group. We offer attractive development opportunities to individuals who develop innovative technological solutions and new business ideas through creativity, know-how, commitment to performance, and high personal standards. 64 The Board of Directors 65

The Board of Directors carries the managerial, Since Dr. Marcus Flubacher and Dr. Gerd Unterburg organizational, supervisory, and financial will step down from both the Board of Trustees responsibilities of HOERBIGER Holding AG. It is and the Board of Directors effective June 30, composed of members of the Board of Trustees, 2016, the following new personnel appointments former members of the HOERBIGER Executive to the Board of HOERBIGER Holding AG were

Board, and seasoned individuals who are resolved at the Annual General Meeting of Group Profile associated with the Group and experienced in HOERBIGER Holding AG on April 6, 2016, as corporate management. requested by the shareholders of HOERBIGER Holding AG: The President, Vice President and remaining members of the Board of Directors are elected Effective July 1, 2016, Dr. Martin Komischke will at the Annual General Meeting at the proposal join the Board of Directors and become President of the Board of Trustees. of the Board of Directors of HOERBIGER Holding AG, relinquishing his existing successful positions As the highest decision-making body, the Board as CEO and Chairman of the Executive Board of of Directors is in charge of the main structural HOERBIGER Holding AG. responsibilities across the HOERBIGER Group, notably its long-term strategy and fundamental Dr. Andreas Hünerwadel will be appointed organizational principles. Vice President of the Board of Directors of HOERBIGER Holding AG. Dr. Hünerwadel has The Board of Directors decides on the compa- been a member of the Board of Directors since ny’s values and principles. It approves the July 1, 2015 and a member of the Board of Group’s planning and budget, and appoints Trustees of the HOERBIGER Foundation since the members of the Executive Board. September 7, 2009.

In addition, Albin Hahn will be appointed to the Board of Directors of HOERBIGER Holding AG HOERBIGER Board of Directors (December 31, 2015). From left to right: 6, 3, 1, 2, 4, 5 effective July 1, 2016. Albin Hahn has been involved as an external member of the Audit 1 Dr. Marcus Flubacher 3 Dr. Rudolf Huber Committee of the Board of Directors since President Member January 1, 2014. Born 1944 Born 1955 President of the Board of Directors since 1997 Member of the Board of Directors since 2008

2 Dr. Gerd Unterburg 4 Dr. Manfred Reichl Vice President Member Born 1940 Born 1953 Vice President of the Board of Directors since 2004; Member of the Board of Directors since 2010 previously, from September 1989 onward, Chairman of the management team of the HOERBIGER group of 5 Egbert Appel companies and of HOERBIGER International in Vienna; Member Chairman of the Executive Board from 1997 until he Born 1949 joined the Board of Directors Member of the Board of Directors since 2012

6 Dr. Andreas Hünerwadel Member Born 1964 Member of the Board of Directors since 2015 66 67

The HOERBIGER Foundation – ensuring stability and continuity Group Profile

The HOERBIGER Foundation in Zug, Switzerland, provides the Group with a sound basis The HOERBIGER Foundation earmarks for the company the majority of corporate profits marked by a long-term view, sustainability, stability, and continuity. generated by the HOERBIGER Group. It is the primary objective of the Foundation to preserve The HOERBIGER Foundation protects the Group’s entrepreneurial heritage and ensures the independence of the company and to support the Group in its continual long-term stability and self-reliance, as well as future-oriented corporate development geared toward expansion. profitable growth. The exclusive mandate of the HOERBIGER Foundation is to safeguard the future of the At 75 percent, the majority of shares of HOERBIGER Holding AG are held by HOERBIGER company. One important concern of the HOERBIGER Foundation is to support research and Tectum Holding AG, Zug, an intermediate holding company that is entirely dependent on development in the HOERBIGER Group through the projects it promotes and through closer the HOERBIGER Foundation. The remaining 25 percent is held via an associated company by collaboration with universities and other research institutes. The HOERBIGER Foundation family shareholder Mrs. Christiana Hörbiger, who is also Vice President of the Board of additionally supports initiatives for the development of HOERBIGER Group employees. Trustees of the HOERBIGER Foundation. The Board of Directors of HOERBIGER Tectum Holding AG is identical to the Board of Trustees of the HOERBIGER Foundation and is composed of members of the Hörbiger family, active and/or former members of the Board of Directors, and independent advisors associated with the company through long-standing cooperation. The Board of Trustees’ sole mandate is to support the Foundation’s mission and safeguard the interests of the HOERBIGER Group.

Shareholders of HOERBIGER Holding AG

75% HOERBIGER Tectum Holding AG Intermediate holding company of the HOERBIGER Foundation

25% Family shareholder Christiana Hörbiger

Status date: April 2016 68 COMPRESSION TECHNOLOGY STRATEGIC BUSINESS UNIT 69 KEEPING AN EVEN KEEL

HOERBIGER is a technology and market leader worldwide for performance-defining Compression Technology components, systems, and services for reciprocating compressors, gas-fueled engines, and turbines. Lower investment related to shale oil and gas as a result of the low price of oil, especially in North America, turned 2015 into a year filled with major challenges for the Compression Technology Strategic Business Unit.

On the one hand, internal adjustments were needed at HOERBIGER in light of the changed market environment. On the other hand, it was important to seize the growth opportunities of the Safety Solutions Business Segment, despite a more difficult environment, and expedite the Segment’s further expansion in the forward-looking safety technology growth market.

Reporting sales of 640.8 million euros, in 2015 the Compression Technology Strategic Business Unit was able to achieve slight growth of 3.5 percent over comparable sales of 619.1 million euros in the previous year. This result is thanks to the added sales volume from the Valve Automation Business Segment, the acquisition of IEP Technologies, LLC, and positive currency exchange rate effects. At 47.5 percent, almost half of the Business Unit’s sales volume comes from the OEM Division, which supplies components and systems directly to compressor and engine manufacturers, companies engaged in plant engineering, and customers in the refrigeration and automotive industries. At 52.5 percent, the Service Division is the second strong pillar in the Compression Technology Strategic Business Unit. Over the course of the year the Compression Technology Strategic Business Unit addressed the dramatically deteriorating business situation, caused by the low price of crude oil, by implementing a comprehensive cost-cutting program in Production and Administration. 70 “We enable our customers to gain clear competitive advantages. As an attentive and 71 forward-looking provider, we know precisely what solutions are needed. This makes us an outstanding partner. Our benchmark is excellent quality – in terms of our products, as a service partner, in operations, and at the management level.”

Johann Hipfl A year filled with major challenges CEO of the Compression Technology Strategic Business Unit and Member of the Executive Board The rapid collapse of crude oil prices in particular presented major challenges for the HOERBIGER Holding AG Compression Technology Strategic Business Unit in 2015. Investments in infrastructure for the production and transport of natural gas, which are tied to the production of shale oil, came nearly to a halt, especially in North America, one of the most important

sales markets for OEM products. Compression Technology

In November 2014, the market price for a barrel of UK Brent was still 80 US dollars. An initial bottom was reached in January 2015 with a barrel of crude oil trading for just under 48 US dollars. A recovery phase that lasted until May 2015 was followed by a renewed downturn. In early 2016, the price of crude oil at times dipped below 30 US dollars.

Price development of UK Brent crude oil from November 2014 to November 2015 (monthly averages in US dollars per barrel)

90

80 79.44

70 64.08 62.34 61.40 59.52 60 58.1 56.56

Price in dollars per barrel 55.09 48.43 50 47.7 46.58 47.62 44.27 40

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 14 14 15 15 15 15 15 15 15 15 15 15 15

Sources: OPEC; EA | © Statista 2016 72 73

Low crude oil prices prompted a significant decline in orders for HOERBIGER from the oil Service solutions that help to achieve reliability, efficiency, and environmental goals will and gas industry. In 2015, this affected not only the Compressor Solutions Segment, but also continue to offer attractive growth potential. HOERBIGER already has an excellent presence the Engine Solutions Segment and the Service Division. in these important areas of the future through its innovative service concepts, such as the In all the Latin American countries dependent on crude oil exports, in particular REE process. Venezuela, Ecuador, Colombia, and Mexico, the worldwide collapse of oil prices prompted Compression Technology declines in sales. The drop in volume was especially pronounced in Brazil. Organic growth In numerous Eastern European countries, in particular Russia, Ukraine, Kazakhstan and more recently Turkey, developments remain difficult to predict, both politically and Potential for organic growth in the long term will continue to arise in the growing emerging economically. markets of Latin America, Eastern Europe, Asia, the Middle East, and Africa, despite the present political and economic uncertainty. These markets will be helped by a continued rise in population, the growing desire for prosperity, and the associated demand for energy, as Growth potential with new business models well as geopolitical developments. One example of a country where prosperity and the demand for energy drive growth is For the Compression Technology Strategic Business Unit the global general economic the People’s Republic of China. The country’s ongoing development of infrastructure and conditions of the oil, gas, and process industries are reason enough to develop new high-growth road transport focuses primarily on liquefied natural gas (LNG). business models with even greater urgency than in the past. The lifting of the economic and financial sanctions imposed on Iran, which was set in The establishment of the new Safety Solutions Business Segment in 2015 was a strategically motion in 2015, will also allow HOERBIGER to resume business relations with local oil, gas, important step in this direction. and process industries, which are very significant players in this region. Safety technology does not just offer considerable growth potential; as a market that is largely independent of the energy sector, it also bolsters the stability of the Group’s portfolio. Engagement and inner strength Due in no small part to the existing core competencies of the Compression Technology Strategic Business Unit, HOERBIGER has good chances of becoming one of the global In light of a dramatically worsened business environment, significant efforts were required innovation, technology and market leaders in this future-oriented market environment. in the 2015 fiscal year from employees and senior managers of the Compression Technology While developing new markets through targeted growth from acquisitions is important, Strategic Business Unit to withstand the pressure of the market. These efforts took the form it is equally important to create new business models for organic growth. of structural adjustments, cost-cutting programs, travel restrictions, and a significantly One example that continues to be very successful is the leasing and operator models higher workload. already successfully practiced as part of the Wellhead Compression initiative. Despite the related stresses, the Strategic Business Unit expedited its strategic growth Alliances with strategic sales partners and customers is another option, such as the initiatives with great dedication. D’BLUE sales partnership with diesel injection specialist L’Orange GmbH, Stuttgart, Germany, One example is the comprehensive optimization of processes across the entire Strategic in effect since 2013 in the Engine Solutions Business Segment. Business Unit pursued by the SaleS and Together projects. 74 75 “SOMETIMES IT’S THE SKETCH OVER A CUP

The objective of the SaleS program is to enhance sales performance in the Compression Innovation – the HOERBIGER DNA Technology Strategic Business Unit by deliberately developing sales employees worldwide. OFThroughout itsCOFFEE.” history, the HOERBIGER brand has stood for innovation – especially in the The Together project allows logistics paths to be shortened by networking global IT business area of Compressor Solutions. HOERBIGER has been an innovation and technology systems. After the successful implementation of the IT project in the Middle East and Africa leader in compression technology for decades, establishing the “prior art” and repeatedly

region in 2013, the Latin American Service companies in followed in July 2014. In 2015, ­setting new standards. Compression Technology another 22 foreign entities worldwide were integrated into the Together IT infrastructure.

OEM DIVISION “We have always based the development of innovative components

The Compression Technology Strategic Business Unit was able to grow sales in the OEM on the needs of our customers. We will continue to do so in the future. Division by 4.4 percent over the previous year. Foreign exchange rate gains were crucial, And our customers appreciate it. but also important were sales generated by the new Safety Solutions Segment and the Valve Automation Segment. Operational revenue in the core business, in contrast, declined Udo Bauer by 13.3 percent due to investment restraint in the oil and gas industry. Head of OEM Division HOERBIGER Kompressortechnik Holding GmbH

Compressor Solutions Business Segment

The portfolio of the Compressor Solutions Business Segment primarily includes components Efficient: HOERBIGER CP valve and systems for traditional reciprocating compressors. One example of such an innovation is the HOERBIGER XP valve featuring the PowerPEEK™ Key customers of the Compressor Solutions Business Segment operate in North America valve plate. and Europe – regions where the pressure of the recession on the oil, gas, and process In 2015, the compelling performance features of the XP valve resulted in the acquisition industries was felt especially hard. of numerous attractive new orders. While sales in North America and Europe fell, new orders were acquired in Asia from The XP valve was specifically developed for the process gas industry, for use in com­ regional compressor manufacturers. pressors that are subject to maximum requirements in terms of performance and reliability. It provides a lifespan three times that of modern standard valves. 74 When something approaches the boundaries of what is physically 75 possible, Dr. Matthias Kornfeld perks up. He came from the realm of science to HOERBIGER five years ago to expedite the use of mathematical simulation models in the Compression Technology Business Unit. Today, he is Head of Product Development in the Compressor Solutions Segment.

The path to success in Dr. Matthias Kornfeld’s field is often long. Shortly after joining HOERBIGER, he launched the HOERBIGER eVCP system, an The objective of the SaleS program is to enhance sales performance in the Compression Innovation – the HOERBIGER DNA innovative compressor control unit. Technology Strategic Business Unit by deliberately developing sales employees worldwide. Throughout its history, the HOERBIGER brand has stood for innovation – especially in the The Together project allows logistics paths to be shortened by networking global IT business area of Compressor Solutions. HOERBIGER has been an innovation and technology “It’s a great feeling to have seen a product through from the initial idea. I can still see systems. After the successful implementation of the IT project in the Middle East and Africa leader in compression technology for decades, establishing the “prior art” and repeatedly the first model and have the scores of tests in my head. Now, our HOERBIGER eVCP

region in 2013, the Latin American Service companies in followed in July 2014. In 2015, ­setting new standards. Compression Technology system is available in the market. What makes my work attractive is our high demands another 22 foreign entities worldwide were integrated into the Together IT infrastructure. and visible successes.”

OEM DIVISION “WeThis havewas also always the case based with the the new development HOERBIGER XP ofvalve: innovative “Compared components to older standard valves, we achieve a considerably longer operating life at The Compression Technology Strategic Business Unit was able to grow sales in the OEM on the needs of our customers. We will continue to do so in the future. greater efficiency with this innovative valve. With this, we set new standards. Division by 4.4 percent over the previous year. Foreign exchange rate gains were crucial, And our customers appreciate it. The customers are able to save costs and improve their competitiveness.” but also important were sales generated by the new Safety Solutions Segment and the Valve Automation Segment. Operational revenue in the core business, in contrast, declined Udo Bauer These are measurable successes. The development of an idea, in contrast, by 13.3 percent due to investment restraint in the oil and gas industry. Head of OEM Division is more difficult to grasp. “Inspiration doesn’t lendHOERBIGER itself to Kompressortechnikplanning,” says Holding GmbH Dr. Matthias Kornfeld Dr. Kornfeld. Compressor Solutions Business Segment “What is therefore important to me is our team. Quite often, you get a cup of coffee, The portfolio of the Compressor Solutions Business Segment primarily includes components Efficient:meet colleagues, HOERBIGER talk, draw CP a valvesketch, and this triggers an avalanche of new ideas. and systems for traditional reciprocating compressors. OneThe combinationexample of such of highly an innovation experienced is the people HOERBIGER makes us XP strong.” valve featuring the PowerPEEK™ Key customers of the Compressor Solutions Business Segment operate in North America valve plate. and Europe – regions where the pressure of the recession on the oil, gas, and process In 2015, the compelling performance features of the XP valve resulted in the acquisition industries was felt especially hard. of numerous attractive new orders. While sales in North America and Europe fell, new orders were acquired in Asia from The XP valve was specifically developed for the process gas industry, for use in com­ regional compressor manufacturers. pressors that are subject to maximum requirements in terms of performance and reliability. It provides a lifespan three times that of modern standard valves. 74 75

The objective of the SaleS program is to enhance sales performance in the Compression Innovation – the HOERBIGER DNA Technology Strategic Business Unit by deliberately developing sales employees worldwide. Throughout its history, the HOERBIGER brand has stood for innovation – especially in the The Together project allows logistics paths to be shortened by networking global IT business area of Compressor Solutions. HOERBIGER has been an innovation and technology systems. After the successful implementation of the IT project in the Middle East and Africa leader in compression technology for decades, establishing the “prior art” and repeatedly

region in 2013, the Latin American Service companies in followed in July 2014. In 2015, ­setting new standards. Compression Technology another 22 foreign entities worldwide were integrated into the Together IT infrastructure.

OEM DIVISION “We have always based the development of innovative components

The Compression Technology Strategic Business Unit was able to grow sales in the OEM on the needs of our customers. We will continue to do so in the future. Division by 4.4 percent over the previous year. Foreign exchange rate gains were crucial, And our customers appreciate it. but also important were sales generated by the new Safety Solutions Segment and the Valve Automation Segment. Operational revenue in the core business, in contrast, declined Udo Bauer by 13.3 percent due to investment restraint in the oil and gas industry. Head of OEM Division HOERBIGER Kompressortechnik Holding GmbH

Compressor Solutions Business Segment

The portfolio of the Compressor Solutions Business Segment primarily includes components Efficient: HOERBIGER CP valve and systems for traditional reciprocating compressors. One example of such an innovation is the HOERBIGER XP valve featuring the PowerPEEK™ Key customers of the Compressor Solutions Business Segment operate in North America valve plate. and Europe – regions where the pressure of the recession on the oil, gas, and process In 2015, the compelling performance features of the XP valve resulted in the acquisition industries was felt especially hard. of numerous attractive new orders. While sales in North America and Europe fell, new orders were acquired in Asia from The XP valve was specifically developed for the process gas industry, for use in com­ regional compressor manufacturers. pressors that are subject to maximum requirements in terms of performance and reliability. It provides a lifespan three times that of modern standard valves. 76 Electric: HOERBIGER eHydroCOM Expected: HOERBIGER eVCP 77 The installation of a number of additional HOERBIGER eHydroCOM systems in 2015 was also With the HOERBIGER eVCP (electrical variable clearance pocket) system, HOERBIGER an important success for the Compressor Solutions Business Segment. also achieved a technological breakthrough in capacity control through clearance volume Field testing for the newly developed all-electric capacity control system for reciprocating variation for high-speed natural gas compressors. compressors had begun in 2012. In 2015, the first series-produced HOERBIGER eHydroCOM In 2015, the development team advanced the new system to the field testing stage. systems were installed at several well-known customers in Europe, immediately after the HOERBIGER eVCP systems are now running flawlessly under tough everyday conditions. product had been approved for the market.

Innovation Innovation Compression Technology HOERBIGER eHydroCOM HOERBIGER eVCP System

HOERBIGER eHydroCOM is a stepless capacity The HOERBIGER eHydroCOM system makes The HOERBIGER eVCP electric capacity control The system is ideally used in conjunction with control system for reciprocating compressors. extremely precise capacity control possible. system is based on a patented actuating HOERBIGER CP valves, which are designed The system operates entirely electrically, Gas throughput can be controlled dynamically, mechanism for the automated, stepless capacity specifically for natural gas applications. These requiring no connections to supplies of hydraulic yielding stable process conditions over a wide control of high-speed reciprocating compressors. offer a 40 percent larger clear flow cross-section oil or cooling water. range of flow rates. As a rule, only the gas volume It was eagerly awaited by the market. over conventional plate valves, and so have needed for the process is actually compressed, significantly lower valve losses. Customers Stepless capacity control allows reciprocating drastically lowering the com­pressor’s energy The HOERBIGER eVCP system is the first benefit from considerably higher gas flow and compressor operators to adjust compressor consumption. reliable product for capacity control of high-speed lower energy consumption. capacity easily and flexibly to new operating natural gas compressors by automatically situations. This significantly reduces energy The goal of the developers was to ensure that varying the volumes of clearance pockets built Having proven tremendously successful consumption. the HOERBIGER eHydroCOM system is able to into the cylinders. The advantage for the in field tests at two customer facilities, the operate continuously for many years without customer is that the compressor always operates HOERBIGER eVCP system is scheduled significant wear. Low installation costs, high with optimal efficiency. for market introduction­ in the second quarter energy efficiency, and manageable maintenance of 2016. expenses provide attractive payback periods for HOERBIGER customers – in both new installations and retrofit solutions. 78 Serial Compressors Business Segment 79 “WHEN THE WORK Under development: HOERBIGER XperLUBE In 2015, the Serial Compressors Business Segment maintained its level of revenue from The HOERBIGER XperLUBE system unveiled at the European Forum for Reciprocating the previous year. Successes in sales achieved over the course of the year will have a positive Compressors (EFRC) Conference in Vienna in 2014 is another product in the development impact on revenue in the coming years. pipeline. YOUIn the refrigeration HAVE and air-conditioning compressor segment, an important long-term agreement on the delivery of reed valves was extended by another four years. Existing long- term agreements with the commercial vehicle industry for deliveries of parts for air brake INVESTEDcompressors were also renewed successfully. Another long-term agreement was concluded with the railway industry.

Innovation EngineBEARS Solutions Business FRUIT Segment – Being centered around the development of innovative components for new generations of industrial gas-powered engines, in 2015 the Engine Solutions Business Segment suffered from HOERBIGER XperLUBE the difficult market conditions even more strongly than the Compressor Solutions Segment. Compression Technology Nonetheless, the Engine Solutions Business Segment successfully developed additional fieldsTHAT’S of application for innovative THE HOERBIGER technology by taking new market initiatives. With the HOERBIGER XperLUBE system, In 2015, the HOERBIGER XperLUBE system It established business relations in 2015 that will be attractive for the near future, especially HOERBIGER has created a system for precisely underwent initial field testing at a customer in connection with new drive concepts for locomotives and marine propulsion systems. metered, flexible and reliable lubrication of in Austria. process and natural gas reciprocating compres- BEST MOMENT.” New Segment structure sors, aimed at both OEM manufacturers and In an effort to better address the widely differing requirements of customers in their various end customers. sectors, the Engine Solutions Business Segment underwent realignment over the course of the year. No HOERBIGER competitor has so far been Tier 1 and Tier 2 OEM customers among the industrial engine manufacturers now find able to combine the requirements for precise designated contacts in the Key Account Management team of the HOERBIGER umbrella brand. metering, flexibility and reliability in a single Tier 3 OEM customers in the industrial engine market, who operate primarily at the system for compressor lubrication. As a result, regional level, are served via the regional distribution channels of the Engine Solutions the HOERBIGER XperLUBE system with its Business Segment. These channels are organized in Europe under the HOERBIGER umbrella patented high-speed oil injector is opening up brand, and in China in collaboration with L’Orange under the shared D’BLUE brand. entirely new possibilities. OEM customers and end users from the oil and gas industry will be served in the future by the sales organization of the Altronic brand.

Major contract for gas-fired thermal power plant A superb market success in August 2015 was the signing of a contract for the supply of HOERBIGER Ported Fuel Injection (PFI) valves for a new gas-fired thermal power plant in Kiel, Germany. The new power plant will replace the present coal power plant. It will supply the city and region with electricity and district heat, setting new standards in flexibility, efficiency, and environmental compatibility. 20 industrial gas engines form the core of the gas-fired thermal plant. They will supply a total output of 190 megawatts of electric power and 192 megawatts of heat, achieving an overall efficiency of close to 90 percent. The injection valves used will be electromagnetic HOERBIGER PFI valves. They were specially adapted for the customer to provide the required degree of flexibility and the associated short response times. 78 SerialJoseph Compressors Lepley and his Business son David Segment together have put in 48 years of 79 Under development: HOERBIGER XperLUBE Inservice 2015, the at Serial Altronic, Compressors a company Business of Segment the HOERBIGER maintained its Group. level of revenueThe two from The HOERBIGER XperLUBE system unveiled at the European Forum for Reciprocating theelectrical previous engineersyear. Successes are in specialists sales achieved in over ignition the course and of control the year systemswill have a positive Compressors (EFRC) Conference in Vienna in 2014 is another product in the development impactused inon gas-poweredrevenue in the coming engines. years. HOERBIGER develops and produces pipeline. In the refrigeration and air-conditioning compressor segment, an important long-term these systems at the Girard, Ohio, location in the United States. agreement on the delivery of reed valves was extended by another four years. Existing long- term agreements with the commercial vehicle industry for deliveries of parts for air brake Joseph “Joe” Lepley joined Altronic in 1977 as a project engineer and has compressors were also renewed successfully. Another long-term agreement was concluded been Head of Development since 1982. with the railway industry.

Innovation Over the years, Joe Lepley successfully filed some 40 patent applications Engine Solutionsfor inventions Business in the USA Segment and internationally. What is his favorite moment?

Being centered around the development of innovative components for new generations of “When after the work and energy you have invested, a new development works as planned.” industrial gas-powered engines, in 2015 the Engine Solutions Business Segment suffered from HOERBIGER XperLUBE the difficult market conditions even more strongly than the Compressor Solutions Segment. Compression Technology Like his father, David Lepley, 31, studied electrical engineering at Nonetheless, the Engine Solutions Business Segment successfully developed additional Youngstown State University in Ohio. He came to Altronic in 2007 immediately fields of application for innovative HOERBIGER technology by taking new market initiatives. With the HOERBIGER XperLUBE system, In 2015, the HOERBIGER XperLUBE system after graduating – two years before the company was acquired by the It established business relations in 2015 that will be attractive for the near future, especially HOERBIGER has created a system for precisely underwent initial field testing at a customer HOERBIGER Group. in connection with new drive concepts for locomotives and marine propulsion systems. metered, flexible and reliable lubrication of in Austria. process and natural gas reciprocating compres- After holding different positions in Sales, David Lepley today is Global New Segment structure sors, aimed at both OEM manufacturers and Product Manager and in charge of the success of Altronic ignition systems In an effort to better address the widely differing requirements of customers in their various end customers. in the market. sectors, the Engine Solutions Business Segment underwent realignment over the course of the year. No HOERBIGER competitor has so far been David Lepley describes working with his father as a challenging yet very Joseph & David Lepley Tier 1 and Tier 2 OEM customers among the industrial engine manufacturers now find able to combine the requirements for precise enriching experience. The VariSpark™ ignition system was successfully designated contacts in the Key Account Management team of the HOERBIGER umbrella brand. metering, flexibility and reliability in a single launched during their shared tenure at HOERBIGER. Thanks to sparks at Tier 3 OEM customers in the industrial engine market, who operate primarily at the system for compressor lubrication. As a result, up to 50,000 volts, the product can reliably ignite even gases that are regional level, are served via the regional distribution channels of the Engine Solutions the HOERBIGER XperLUBE system with its low in energy. Business Segment. These channels are organized in Europe under the HOERBIGER umbrella patented high-speed oil injector is opening up brand, and in China in collaboration with L’Orange under the shared D’BLUE brand. entirely new possibilities. “We are prepared for the future with these kinds of strong product innovations,” says OEM customers and end users from the oil and gas industry will be served in the future David Lepley. “We will do everything in our power to ensure that HOERBIGER remains by the sales organization of the Altronic brand. a leading gas engine player.”

Major contract for gas-fired thermal power plant A superb market success in August 2015 was the signing of a contract for the supply of HOERBIGER Ported Fuel Injection (PFI) valves for a new gas-fired thermal power plant in Kiel, Germany. The new power plant will replace the present coal power plant. It will supply the city and region with electricity and district heat, setting new standards in flexibility, efficiency, and environmental compatibility. 20 industrial gas engines form the core of the gas-fired thermal plant. They will supply a total output of 190 megawatts of electric power and 192 megawatts of heat, achieving an overall efficiency of close to 90 percent. The injection valves used will be electromagnetic HOERBIGER PFI valves. They were specially adapted for the customer to provide the required degree of flexibility and the associated short response times. 78 Serial Compressors Business Segment 79 Under development: HOERBIGER XperLUBE In 2015, the Serial Compressors Business Segment maintained its level of revenue from The HOERBIGER XperLUBE system unveiled at the European Forum for Reciprocating the previous year. Successes in sales achieved over the course of the year will have a positive Compressors (EFRC) Conference in Vienna in 2014 is another product in the development impact on revenue in the coming years. pipeline. In the refrigeration and air-conditioning compressor segment, an important long-term agreement on the delivery of reed valves was extended by another four years. Existing long- term agreements with the commercial vehicle industry for deliveries of parts for air brake compressors were also renewed successfully. Another long-term agreement was concluded with the railway industry.

Innovation Engine Solutions Business Segment

Being centered around the development of innovative components for new generations of industrial gas-powered engines, in 2015 the Engine Solutions Business Segment suffered from HOERBIGER XperLUBE the difficult market conditions even more strongly than the Compressor Solutions Segment. Compression Technology Nonetheless, the Engine Solutions Business Segment successfully developed additional fields of application for innovative HOERBIGER technology by taking new market initiatives. With the HOERBIGER XperLUBE system, In 2015, the HOERBIGER XperLUBE system It established business relations in 2015 that will be attractive for the near future, especially HOERBIGER has created a system for precisely underwent initial field testing at a customer in connection with new drive concepts for locomotives and marine propulsion systems. metered, flexible and reliable lubrication of in Austria. process and natural gas reciprocating compres- New Segment structure sors, aimed at both OEM manufacturers and In an effort to better address the widely differing requirements of customers in their various end customers. sectors, the Engine Solutions Business Segment underwent realignment over the course of the year. No HOERBIGER competitor has so far been Tier 1 and Tier 2 OEM customers among the industrial engine manufacturers now find able to combine the requirements for precise designated contacts in the Key Account Management team of the HOERBIGER umbrella brand. metering, flexibility and reliability in a single Tier 3 OEM customers in the industrial engine market, who operate primarily at the system for compressor lubrication. As a result, regional level, are served via the regional distribution channels of the Engine Solutions the HOERBIGER XperLUBE system with its Business Segment. These channels are organized in Europe under the HOERBIGER umbrella patented high-speed oil injector is opening up brand, and in China in collaboration with L’Orange under the shared D’BLUE brand. entirely new possibilities. OEM customers and end users from the oil and gas industry will be served in the future by the sales organization of the Altronic brand.

Major contract for gas-fired thermal power plant A superb market success in August 2015 was the signing of a contract for the supply of HOERBIGER Ported Fuel Injection (PFI) valves for a new gas-fired thermal power plant in Kiel, Germany. The new power plant will replace the present coal power plant. It will supply the city and region with electricity and district heat, setting new standards in flexibility, efficiency, and environmental compatibility. 20 industrial gas engines form the core of the gas-fired thermal plant. They will supply a total output of 190 megawatts of electric power and 192 megawatts of heat, achieving an overall efficiency of close to 90 percent. The injection valves used will be electromagnetic HOERBIGER PFI valves. They were specially adapted for the customer to provide the required degree of flexibility and the associated short response times. 80 81

Safety Solutions Business Segment

Innovations undergoing field testing Safety technology is a strategic growth market with tremendous future potential for the The development of the modular integrated HOERBIGER DriveCOM system, which is used HOERBIGER Group – in particular due to the numerous synergies with the competencies to control and monitor gas engines, generators and compressors, was concluded in 2015. and capabilities of the Compression Technology Strategic Business Unit. HOERBIGER offers Initial joint projects with OEMs were started in the USA and Japan. For 2016, the Engine safety-related products and services in many areas. For decades, HOERBIGER has been an

Solutions Business Segment plans to enter the aftermarket. innovation and technology leader for explosion protection and check valves for oil, gas, Compression Technology and dust applications in the mechanical and plant engineering industries. Engine Solutions sales in China As a result, the acquisition of internationally renowned explosion protection specialist In late April 2015, the Engine Solutions Business Segment opened an agency in Suzhou, IEP Technologies, LLC was a crucial step for the continued development of the Group in China, to intensify the partnerships with industrial engine manufacturers and operators in the safety technology field. IEP Technologies is based in Marlborough, Massachusetts, USA, the rapidly growing Asian markets. The focus is on sales, project management, and technical and was acquired from Sentinel Capital Partners effective September 1, 2015. From that date, support for engine control units, ignition systems, actuators, and ported fuel injection valves the business activities of IEP Technologies have formed the core of the new HOERBIGER Safety for industrial gas, diesel, and dual-fuel engines. Solutions Segment in the OEM Division. In addition to HOERBIGER, the new agency in Suzhou also represents D’BLUE, the partnership with diesel injection system specialist L’Orange initiated in 2012. Together with IEP Technologies L’Orange, HOERBIGER will handle Chinese customers’ engine projects locally from the IEP Technologies operates internationally through locations in Marlborough, Massachusetts, Suzhou site. in the United States, Ratingen in Germany, Olten in Switzerland, Paris in France, Izmir in Turkey, and Cheltenham in the United Kingdom. The company is a leading provider Successful collaboration with GE Waukesha of explosion protection systems and services, and a market leader for explosion mitigation The collaboration between the Service Division and GE Waukesha, one of the world’s most systems in process plants. An unrivaled global service network ensures that explosion influential gas engine manufacturers, commenced in 2015. It has had a very positive effect on protection equipment is always operational and effective. Authorities and other institutions the Engine Solutions Business Segment. engaged in safety and explosion protection draw on IEP Technologies’ subject matter expertise In January 2015, the first contracts for the representation of GE Waukesha in Latin America and know-how in the development of national and international standards. were negotiated and signed. They qualify HOERBIGER as a GE Waukesha sales and service IEP Technologies has more than 50 years of consolidated experience in safety and explosion partner in Venezuela, Mexico, and Peru. This pioneering agreement was followed later in protection technology. Extensive research and development projects have established the the year by additional sales and service agreements for Canada and Russia. In December 2015, company as a leader in this highly specialized and financially extremely attractive niche a contract to represent GE Waukesha in Gabon, Cameroon, Congo, and Angola was signed. market. These projects relate especially to computer-assisted calculation and simulation of explosion processes, and the development of tailor-made solutions to detect and mitigate explosions in industrial process equipment. This leadership position is also evidenced in the large number of cases where IEP Technologies’ equipment reliably prevented the destruction of the equipment on which it was installed. 82 SERVICE DIVISION 83 “EVEN DURING HOERBIGER will continue to expand the Safety Solutions Business Segment in the coming As with the OEM Division, the business operations of the Service Division also suffered a years. In January 2016, HOERBIGER was able to acquire privately owned Newson Gale, which significant drop in sales in 2015. Supported by currency exchange rate effects, the Service is headquartered in Nottingham, United Kingdom. Newson Gale was predominantly owned Division achieved an increase in year-on-year revenue of approximately 4.1 percent by by company founder Ernest Kochmann and his family, with a minority stake held by CEO THEyear end. DEVELOPMENT Graham Tyers. Newson Gale offers an extensive portfolio of solutions for electrostatic grounding and Weak mature markets the prevention of ignition hazards in potentially explosive areas. Practically every process STAGEThe Service Division suffered declining business primarily in the mature markets, most that handles flammable gases, liquid vapors or dust requires grounding and potential notably in the natural gas upstream sector in the USA and Canada. equalization to prevent the risk of electrostatic ignition – from loading tank trucks to filling The decrease in sales was also partly attributable to the sale of the service business for small containers. turbomachinery in Europe. Effective July 31, 2015, the previous subsidiary HOERBIGER ITurbomachinery REPRESENT Service B.V.B.A., Stekene, Belgium, was sold to management. The management With explosion vent specialist BRILEX, another established brand in the safety technology buyout ensured uninterrupted customer support and continued employment of the staff field was added to the HOERBIGER portfolio in April 2016. Flameless vents and patented, beyond the exchange of ownership. ATEX-certified explosion vents developed in-house make BRILEX Gesellschaft für Explosions- THE On the other hand,INTERESTS HOERBIGER Engineering Services managed to increase its market Compression Technology schutz mbH, Brilon, Germany a strong partner in passive explosion protection for customers share in the USA by more than 30 percent. Despite the difficult economic environment, in industry. it attracted strategically important new customers for stationary gas engine upgrades in OFthe pipeline industry.MY FUTURE Valve Automation Business Segment An important step toward reviving the Service business in Canada was the signing of a Material Stream Agreement with Above and Beyond Compression Inc. (ABC) in October 2015. The Valve Automation Business Segment, which before July 1, 2015 operated under of the ABC is a leading supplier of engine and compressor components for customers in the gas former Automation Technology Strategic Business Unit, is significant for the Compression CUSTOMERS.”industry, and is located in western Canada. Technology Strategic Business Unit. Given the synergies that exist in Development, Sales, and production, the Valve Automation Segment now has significantly better access to customers in the oil, gas, and process industries. As a result, in 2015 the Valve Automation Business Segment acquired the first major contract to equip a pipeline with the extremely reliable HOERBIGER TriVAX™ actuators. “The success of HOERBIGER Engineering Services in the USA The TriVAX™ electrohydraulic valve actuator combines electronics, hydraulics, and proves that even in difficult times we can make an important mechanics in one self-contained system. The compact, closed design, with no external oil contribution to our customers’ added value with premium lines, means that the HOERBIGER TriVAX™ actuator operates cleanly and without leaks. Thanks to integrated interfaces to standard field buses, it can easily be incorporated into technical service solutions.” existing automation systems, while the flameproof encapsulated housing ensures safe operation in areas that are prone to explosions. Dr. Markus Digruber The Valve Automation Business Segment was able to arrange a promising partnership Executive Vice President Mature Markets HOERBIGER Kompressortechnik Holding GmbH with ROTEX Automation Ltd. in 2015 for the sale of part-turn actuators from the HOERBIGER TriVAX™ product portfolio and HOERBIGER piezo technology in India. ROTEX is based in Dombivli, India, and specializes in the production of valves, fluidic valve actuators, and pneumatic process valves. ROTEX has established an excellent position in these markets. 82 SERVICE39 actuators DIVISION and 23 compact power packs – Gotthard Gawens did not 83 HOERBIGER will continue to expand the Safety Solutions Business Segment in the coming Asexpect with the the OEM order Division, for HOERBIGER the business operations TriVAX™ of valvethe Service actuators Division to also be suffered this a years. In January 2016, HOERBIGER was able to acquire privately owned Newson Gale, which significantextensive dropwhen in salesa potential in 2015. Supported new customer by currency inquired exchange a fewrate effects,weeks theearlier Service is headquartered in Nottingham, United Kingdom. Newson Gale was predominantly owned Divisionabout the achieved performance an increase features in year-on-year of the revenue innovative of approximately electrohydraulic 4.1 percent by by company founder Ernest Kochmann and his family, with a minority stake held by CEO year end. valve actuator. Graham Tyers. Newson Gale offers an extensive portfolio of solutions for electrostatic grounding and Weak mature markets Just as soon as the products were shipped, on time of course, another order the prevention of ignition hazards in potentially explosive areas. Practically every process The Service Division suffered declining business primarily in the mature markets, most followed. Gotthard Gawens is excited. that handles flammable gases, liquid vapors or dust requires grounding and potential notably in the natural gas upstream sector in the USA and Canada. equalization to prevent the risk of electrostatic ignition – from loading tank trucks to filling The decrease in sales was also partly attributable to the sale of the service business for For Gotthard Gawens, TriVAX™ is more than a valve actuator. The compact small containers. turbomachinery in Europe. Effective July 31, 2015, the previous subsidiary HOERBIGER power unit played a decisive role when he left his employer, a competitor, Turbomachinery Service B.V.B.A., Stekene, Belgium, was sold to management. The management to join HOERBIGER three years ago. With explosion vent specialist BRILEX, another established brand in the safety technology buyout ensured uninterrupted customer support and continued employment of the staff field was added to the HOERBIGER portfolio in April 2016. Flameless vents and patented, beyond the exchange of ownership.

Even while working for his previous employer, Gotthard Gawens pushed for Compression Technology ATEX-certified explosion vents developed in-house make BRILEX Gesellschaft für Explosions- On the other hand, HOERBIGER Engineering Services managed to increase its market the development of an electrohydraulic drive system: schutz mbH, Brilon, Germany a strong partner in passive explosion protection for customers share in the USA by more than 30 percent. Despite the difficult economic environment, in industry. it attracted strategically important new customers for stationary gas engine upgrades in “Hydraulics offer unbeatable qualities, but have the reputation of being high-maintenance the pipeline industry. and prone to leaks. With the closed TriVAX™ system, we protect our customers from these An important step toward reviving the Service business in Canada was the signing of a Valve Automation Business Segment drawbacks.” Material Stream Agreement with Above and Beyond Compression Inc. (ABC) in October 2015. The Valve Automation Business Segment, which before July 1, 2015 operated under of the ABC is a leading supplier of engine and compressor components for customers in the gas Gotthard Gawens personally stands fully behind “his” product. It’s a trait former Automation Technology Strategic Business Unit, is significant for the Compression industry, and is located in western Canada. that benefits him in his day-to-day work. As product manager, he must be Technology Strategic Business Unit. Given the synergies that exist in Development, Sales, and able to anticipate the expectations of his future customers. production, the Valve Automation Segment now has significantly better access to customers Gotthardin the oil, Gawens gas, and process industries. “Even during the development stage, I must represent the interests of the customer. As a result, in 2015 the Valve Automation Business Segment acquired the first major Afterwards, the art lies in conveying that I already have the technology that the customer contract to equip a pipeline with the extremely reliable HOERBIGER TriVAX™ actuators. “The success of HOERBIGER Engineering Services in the USA needs – even if he doesn’t know it yet.” The TriVAX™ electrohydraulic valve actuator combines electronics, hydraulics, and proves that even in difficult times we can make an important mechanics in one self-contained system. The compact, closed design, with no external oil This kind ofcontribution persuasion is not to easy, our especially customers’ in conservative added marketsvalue withsuch premium lines, means that the HOERBIGER TriVAX™ actuator operates cleanly and without leaks. as the oil, gas, and process industries, which makes him all the more proud Thanks to integrated interfaces to standard field buses, it can easily be incorporated into technical service solutions.” of the first major order. existing automation systems, while the flameproof encapsulated housing ensures safe operation in areas that are prone to explosions. Dr. Markus Digruber The Valve Automation Business Segment was able to arrange a promising partnership Executive Vice President Mature Markets HOERBIGER Kompressortechnik Holding GmbH with ROTEX Automation Ltd. in 2015 for the sale of part-turn actuators from the HOERBIGER TriVAX™ product portfolio and HOERBIGER piezo technology in India. ROTEX is based in Dombivli, India, and specializes in the production of valves, fluidic valve actuators, and pneumatic process valves. ROTEX has established an excellent position in these markets. 82 SERVICE DIVISION 83 HOERBIGER will continue to expand the Safety Solutions Business Segment in the coming As with the OEM Division, the business operations of the Service Division also suffered a years. In January 2016, HOERBIGER was able to acquire privately owned Newson Gale, which significant drop in sales in 2015. Supported by currency exchange rate effects, the Service is headquartered in Nottingham, United Kingdom. Newson Gale was predominantly owned Division achieved an increase in year-on-year revenue of approximately 4.1 percent by by company founder Ernest Kochmann and his family, with a minority stake held by CEO year end. Graham Tyers. Newson Gale offers an extensive portfolio of solutions for electrostatic grounding and Weak mature markets the prevention of ignition hazards in potentially explosive areas. Practically every process The Service Division suffered declining business primarily in the mature markets, most that handles flammable gases, liquid vapors or dust requires grounding and potential notably in the natural gas upstream sector in the USA and Canada. equalization to prevent the risk of electrostatic ignition – from loading tank trucks to filling The decrease in sales was also partly attributable to the sale of the service business for small containers. turbomachinery in Europe. Effective July 31, 2015, the previous subsidiary HOERBIGER Turbomachinery Service B.V.B.A., Stekene, Belgium, was sold to management. The management With explosion vent specialist BRILEX, another established brand in the safety technology buyout ensured uninterrupted customer support and continued employment of the staff field was added to the HOERBIGER portfolio in April 2016. Flameless vents and patented, beyond the exchange of ownership. ATEX-certified explosion vents developed in-house make BRILEX Gesellschaft für Explosions- On the other hand, HOERBIGER Engineering Services managed to increase its market Compression Technology schutz mbH, Brilon, Germany a strong partner in passive explosion protection for customers share in the USA by more than 30 percent. Despite the difficult economic environment, in industry. it attracted strategically important new customers for stationary gas engine upgrades in the pipeline industry. Valve Automation Business Segment An important step toward reviving the Service business in Canada was the signing of a Material Stream Agreement with Above and Beyond Compression Inc. (ABC) in October 2015. The Valve Automation Business Segment, which before July 1, 2015 operated under of the ABC is a leading supplier of engine and compressor components for customers in the gas former Automation Technology Strategic Business Unit, is significant for the Compression industry, and is located in western Canada. Technology Strategic Business Unit. Given the synergies that exist in Development, Sales, and production, the Valve Automation Segment now has significantly better access to customers in the oil, gas, and process industries. As a result, in 2015 the Valve Automation Business Segment acquired the first major contract to equip a pipeline with the extremely reliable HOERBIGER TriVAX™ actuators. “The success of HOERBIGER Engineering Services in the USA The TriVAX™ electrohydraulic valve actuator combines electronics, hydraulics, and proves that even in difficult times we can make an important mechanics in one self-contained system. The compact, closed design, with no external oil contribution to our customers’ added value with premium lines, means that the HOERBIGER TriVAX™ actuator operates cleanly and without leaks. Thanks to integrated interfaces to standard field buses, it can easily be incorporated into technical service solutions.” existing automation systems, while the flameproof encapsulated housing ensures safe operation in areas that are prone to explosions. Dr. Markus Digruber The Valve Automation Business Segment was able to arrange a promising partnership Executive Vice President Mature Markets HOERBIGER Kompressortechnik Holding GmbH with ROTEX Automation Ltd. in 2015 for the sale of part-turn actuators from the HOERBIGER TriVAX™ product portfolio and HOERBIGER piezo technology in India. ROTEX is based in Dombivli, India, and specializes in the production of valves, fluidic valve actuators, and pneumatic process valves. ROTEX has established an excellent position in these markets. 84 85

Positive developments in the emerging markets The necessary technological know-how is provided by experts from the four product lines: Positive business signals in 2015 came from the emerging markets. Recips, Engines, Turbo, and Wellhead Compression. Having recovered considerably over the previous year, the Eastern European region in particular was strong operationally. Sales also rose in the Asia-Pacific and the Middle East Upgrade and revamp

and Africa regions. One of the core competencies of the Service Division in the Solutions Segment is the upgrade Compression Technology In contrast, HOERBIGER suffered a significant decline in sales in Latin America. Decisive and revamp of reciprocating compressors and gas-powered engines. factors here were not only lower order volumes, but also the continued difficult political and In the USA, for example, HOERBIGER won an attractive order to increase the reliability, economic situation in the region. This primarily impacted business in Brazil, and especially energy efficiency, and capacity of several reciprocating compressors in hydrogen plants. TURBOTECH Engenharia LTDA in Salvador (Bahia). This company specializes in upscale The Service Division additionally overhauled a total of 19 reciprocating compressors for a engineering and project management services for turbomachinery, and was acquired by major pipeline operator. This project included reducing the emissions of gas engines used to HOERBIGER in 2014. drive the compressors, and revamping the equipment to meet new environmental regulations.

REE entry into service contracts Reliability, Efficiency, and Environmental soundness (REE) are also the focus of the REE Audit “We firmly expect the emerging markets to continue to grow that was launched as a new service offering in 2013/14. long-term, despite all the recent problems. Our pioneering work Under the REE program, HOERBIGER experts use their knowledge and experience to audit in the new Wellhead Compression, Turbo Services, and Engine customers’ reciprocating compressors. They then analyze each compressor’s technical Services Business Segments, as well as our global presence, will equipment, and its performance in different operating states and under changing loads. This information is used to prepare proposals that will effectively enhance the performance have a favorable impact.” of the compressor and the plant that depends on it. Customers generally benefit from these Franz Gruber proposals, so the reputation of HOERBIGER REE auditors in the market is accordingly high. Executive Vice President Emerging Markets HOERBIGER REE Audits are now generating an appreciable share of business, most HOERBIGER Service Latin America, Inc. notably in the mature markets. In 2015, for example, a number of attractive master agree- ments were again concluded based on recommendations from REE audits.

Positioned for new growth In 2014, HOERBIGER launched Project Springboard, a global change project that supports the necessary transformation of the Service organization from a valve repair provider and replacement parts supplier to a customer-oriented global Solution Partner. In the first step of this transformation, the portfolio covering both mature and emerging markets was realigned and assigned organizationally to two new segments: the Solutions Segment, which is geared to all-encompassing services, and the Parts & Repair Segment, which continues to focus on the traditional substitution of replacement and wear parts. 86 87

PRODUCTION DIVISION

Wellhead Compression remains a model for success The Production Division in 2015 once more made its mark as the driving force on the path to The Wellhead Compression initiative is a success that paves the way for the development of new business ideas. the Solutions Segment. As part of the new business model developed seven years ago in A key milestone was the Production Conference initiated by the Compression Technology Latin America, HOERBIGER makes mobile compressors available to oil and gas production Strategic Business Unit, which in June 2015 brought Operations managers from all the Strategic

customers for a contract period as a lease fleet provider. The units allow these customers to Business Units and Business Divisions together in Dresden, Germany. The goal was to Compression Technology economically extract residual amounts from largely depleted oil and gas fields. develop Group-wide unique manufacturing propositions: unrivaled competitive advantages The Wellhead Compression initiative continues to be one of the most important growth driven by innovative ideas from – and for – Operations. initiatives in the HOERBIGER Group. To be able to successfully expand the business model, in 2015 the Wellhead Compression activities were realigned throughout the Group. Spearheaded by the HOERBIGER Service organization in Latin America, a Center of Excellence was established that now supports all projects and inquiries worldwide. To maintain closeness to the customer, “Effectiveness in Production is necessary, but not sufficient. Operations has regional contacts were assigned to the areas of Application Engineering, Field Service, and Business Development in the Asia-Pacific (APAC), Middle East & Africa (MEA), and to change the way it thinks and acts in order to implement new business ideas Eastern Europe (EAST) service regions. and actively contribute to the corporate strategy.” The prototypes of a new generation of Wellhead Compression units were launched in 2015 at the facility of a key customer in Argentina. In the design of these new units, developed jointly with compressor manufacturer Sertco, HOERBIGER was able to apply all the experience Hannes Hunschofsky it had collected with the first generation of Wellhead Compression units. Chief Operations Officer and Head of Production Division HOERBIGER Kompressortechnik Holding One of the unique features of the new Wellhead Compression units is the option of online monitoring. For HOERBIGER, this is a crucial step toward the plan to offer customers full-service operator models in the future via the leasing of Wellhead Compression units.

New business models for Parts & Repair HOERBIGER is also providing new impetus through innovative business models in Parts & Repair, the traditional second segment of the Service Division. Going forward, HOERBIGER will offer its customers new service products that are no longer solely about replacement and spare parts for compressors and machines. Instead, the new products will provide contractual agreements on the availability of valves and components. The first pilot customers were acquired in 2015. 88 89 “THE QEHS MISSION PROTECTS

Departing from established mindset In the Compression Technology Strategic Business Unit, Production actively participates in OUR BUSINESS.” the development of new business ideas. This involves multifaceted initiatives aimed at boosting Production’s efficiency and effectiveness, along with the standardization of technologies HOERBIGER QEHS Mission

and processes, and a consolidation of locations that is beneficial for both the Strategic Compression Technology Business Unit and the HOERBIGER Group. The adoption of a globally applicable Quality, It was preceded by the appointment of a top Translating this approach into success will require a departure from the established Environment, Health and Safety (QEHS) Mission manager solely in charge of Quality, Environ- mindset – thinking outside the box on the part of Strategic Business Units and Business for the HOERBIGER Group in October 2015 was ment, Health and Safety. Since January 2016, Divisions, and learning from each other. an important milestone for the continued he has expedited the implementation of the development of high manufacturing standards QEHS Mission on a Group-wide basis, networ- In 2015, Production in the Compression Technology Strategic Business Unit achieved significant at HOERBIGER. king with the Strategic Business Units and productivity increases with new platform concepts, innovative manufacturing systems, Business Divisions. and the partial automation of previously largely manual manufacturing processes. The inspiration for the pioneering mission Key process management projects were dedicated to optimizing shared logistics chains statement came from a workshop held as part of with important customers. The guiding principle for the supply chain is the long-term the Production Conference in Dresden. It was objective of delivering first-rate quality products to the customer, within just one day, at supported by the Operations managers of all the steady production costs, even with a lot size of one. Strategic Business Units. 88 Christian Keis joined HOERBIGER in 2011 as Quality Manager. Today, 89 he is Head of Global Quality Management & Environment, Health and Safety (QEHS) in the Compression Technology Strategic Business Unit.

“When I started at HOERBIGER, every site had its own local health and safety guidelines. There was no comprehensive QEHS mission that applied to the entire Group.”

Numerous customers, especially those in the oil and gas and automotive industries, require their suppliers to provide commitments based on QEHS principles and corresponding certifications. These documents are mandatory Departing from established mindset for companies to be considered when contracts are awarded. In the Compression Technology Strategic Business Unit, Production actively participates in the development of new business ideas. This involves multifaceted initiatives aimed at boosting “With our local QEHS guidelines, we were no longer the benchmark. I planned to Production’s efficiency and effectiveness, along with the standardization of technologies HOERBIGER QEHS Mission change this.”

and processes, and a consolidation of locations that is beneficial for both the Strategic Compression Technology Business Unit and the HOERBIGER Group. The adoption Christianof a globally Keis applicable took the Quality, initiative. In 2015It was he preceded brought by together the appointment the appropriate of a top Translating this approach into success will require a departure from the established Environment,experts Health and from Safety the Strategic (QEHS) Mission Business Unitsmanager and solely Business in charge Divisions of Quality, and fromEnviron - mindset – thinking outside the box on the part of Strategic Business Units and Business for the HOERBIGERCorporate Group Risk in Management,October 2015 wasand collectivelyment, Health they and developed Safety. Since a cross-divisional January 2016, Divisions, and learning from each other. an important HOERBIGERmilestone for QEHSthe continued Mission that is nowhe hasin effect expedited worldwide. the implementation of the development of high manufacturing standards QEHS Mission on a Group-wide basis, networ- In 2015, Production in the Compression Technology Strategic Business Unit achieved significant “Theat HOERBIGER. engagement from everyone involved was high.king We with made the Strategicprogress Business very quickly.” Units and productivity increases with new platform concepts, innovative manufacturing systems, Business Divisions. and the partial automation of previously largely manual manufacturing processes. The inspirationIn forOctober the pioneering 2015, the missionteam presented the draft of the QEHS Mission to the Key process management projects were dedicated to optimizing shared logistics chains statement cameExecutive from a workshopBoard. And held they as partdid soof successfully: the proposal was accepted. with important customers. The guiding principle for the supply chain is the long-term Christian Keis the Production Conference in Dresden. It was objective of delivering first-rate quality products to the customer, within just one day, at “Oursupported next goalby the is Operationsto advance managers our QEHS of performance all the everywhere to achieve excellence.” steady production costs, even with a lot size of one. Strategic Business Units. 88 89

Departing from established mindset In the Compression Technology Strategic Business Unit, Production actively participates in the development of new business ideas. This involves multifaceted initiatives aimed at boosting Production’s efficiency and effectiveness, along with the standardization of technologies HOERBIGER QEHS Mission

and processes, and a consolidation of locations that is beneficial for both the Strategic Compression Technology Business Unit and the HOERBIGER Group. The adoption of a globally applicable Quality, It was preceded by the appointment of a top Translating this approach into success will require a departure from the established Environment, Health and Safety (QEHS) Mission manager solely in charge of Quality, Environ- mindset – thinking outside the box on the part of Strategic Business Units and Business for the HOERBIGER Group in October 2015 was ment, Health and Safety. Since January 2016, Divisions, and learning from each other. an important milestone for the continued he has expedited the implementation of the development of high manufacturing standards QEHS Mission on a Group-wide basis, networ- In 2015, Production in the Compression Technology Strategic Business Unit achieved significant at HOERBIGER. king with the Strategic Business Units and productivity increases with new platform concepts, innovative manufacturing systems, Business Divisions. and the partial automation of previously largely manual manufacturing processes. The inspiration for the pioneering mission Key process management projects were dedicated to optimizing shared logistics chains statement came from a workshop held as part of with important customers. The guiding principle for the supply chain is the long-term the Production Conference in Dresden. It was objective of delivering first-rate quality products to the customer, within just one day, at supported by the Operations managers of all the steady production costs, even with a lot size of one. Strategic Business Units. 90 91

In 2016, the extra mile matters

Clear structures in Rings & Packings 2016 will remain a year filled with major challenges for HOERBIGER. This is especially true for The relocation of Rings & Packings production from the Bradford site in England to the Compression Technology Strategic Business Unit, which will take further measures to HOERBIGER Ventilwerke in Vienna, Austria, in 2015 was an important operational step align its structures and processes to market changes and the resulting changed needs of its toward streamlining production structures in the Compression Technology Strategic Business customers.

Unit. This Segment has developed very positively since the engineering and production In the Service Division in particular, HOERBIGER will expedite the transformation from a Compression Technology responsibilities for rings and packings in Europe were established at HOERBIGER Ventilwerke provider offering traditional compressor valve services to a partner for customized solutions, in 2006. The process was successfully completed with the relocation of the remaining in order to grow considerably more profitably in the long term. production capacity from Bradford to Vienna. The employees of the Compression Technology Strategic Business Unit are prepared to go the extra mile together. Concentrating US production in Florida HOERBIGER will make significant investments in North America by the end of 2017 for a new manufacturing location in Coral Springs, Florida, USA. The plan is to consolidate US production for the Compressor Solutions Segment in one location.

Entirely on schedule: WIENeu Construction of the new HOERBIGER location in Vienna-Aspern, which started with a ground-breaking ceremony in June 2014, made significant progress in 2015. By the end of 2015, the 45 million euro project had already progressed far enough for the first departments to move into the new building in the spring of 2016, in accordance with the schedule. The opening ceremony for the new location will be held in June 2016 as part of the HOERBIGER Business Meeting. 92 DRIVE TECHNOLOGY STRATEGIC BUSINESS UNIT 93 DELIVERED ON PROMISE – EXCELLENT JOB Drive Technology

2015 was one of the most successful fiscal years ever for the Drive Technology Strategic Business Unit. All expectations from the planning process were exceeded.

In 2015, the Drive Technology Strategic Business Unit boosted sales compared to the previous year by 5.4 percent to 357.9 million euros, delivering an outstanding performance. These figures include the Transmission Comfort Business Segment that was incorporated from the former Automotive Comfort Systems Business Division. Signs of the excellent trend were already on the horizon at the beginning of the year. In sum, the order volume acquired in 2015 again significantly surpassed the strategic targets by year-end. Successful production start-ups with local OEMs helped to improve the market position considerably, especially in China. An important foundation for continued growth in the Chinese market was also laid with the expansion of the local manufacturing location. 94 “We have a common goal in the Drive 95 Technology Strategic Business Unit: we want to grow and win.”

Thomas Englmann 2015 – the global automotive industry is growing CEO of the Drive Technology Strategic Business Unit and Member of the Executive Board 2015 was an outstanding year not just for HOERBIGER, but for the automotive industry as HOERBIGER Holding AG a whole. Historically low crude oil prices and continued growth in Asia appreciably fueled demand for new vehicles. According to the Verband der Deutschen Automobilindustrie e.V. (VDA, German Association of the Automotive Industry), the number of new vehicles sold worldwide rose by 2.8 percent in 2015, to 78 million vehicles.

In Western Europe, the automobile market developed better than forecast, and at 9 percent growth posted the highest increase in 25 years. Parts of Eastern Europe, in contrast, are still marked by the global economic crisis. Russia’s market in particular is drastically Drive Technology on the decline, reporting a drop of 36 percent. 2015 was considered a record year for the US market. With 17.4 million new vehicles, sales surpassed the previous high. The Chinese market was not able to maintain the double-digit growth rates of recent years, but at an increase of 9 percent still achieved a good result. China thus continued to defend its position as the world’s largest automobile market. In India, 2.8 million new vehicles sold generated growth of 8 percent.

2015 registration figures compared to 2014 by region(January through December, respectively)

Registration figures by region * Volume Change 2014/2015 in % Western Europe 13,201,000 9 Eastern Europe 2,373,000 –25.3 USA 17,386,000 5.8 Brazil 2,481,000 –25.6 China 20,047,000 9.1 India 2,773,000 7.9 South Korea 1,571,000 11.4 Japan 4,216,000 –10.3 96 97

Experts from the German Center of Automotive Management (CAM) expect sales in the automotive Synchronizer design and system expertise – even covering the design of entire transmissions – sector to continue to rise in the coming years: “The automotive industry will remain on a is an essential strategic pillar, and at the same time a decisive success factor, for the Strategic growth trajectory in 2016, but has to be prepared for increasing volatility and continued high Business Unit. competition intensity,” the CAM forecast reads. As a result, the forecast says, global market HOERBIGER is the world leader in this field. An ever-growing number of global and local position and high flexibility will become increasingly important factors for companies in the customers utilize this system development expertise to benefit from HOERBIGER’s experience automotive sector going forward. and performance capability as a development partner not only in new transmission develop- Asia in particular still holds development potential. The vehicle market in China will grow ments, but also when it comes to optimizations and modifications. in the high single-digit range. According to information from the VDA, only 22 passenger cars are registered per

Number one worldwide for synchronizers Drive Technology 1,000 inhabitants in India. The sector consequently anticipates further growth here again in 2016 – in part favored by a growing middle class, low crude oil prices, and low interest rates. Seeking to take advantage of the growth potential available in the market, the Drive There are also positive signs for North America. Associations anticipate continued Technology Strategic Business Unit developed a strong vision: to be the number one for increases, in particular in the USA. synchronizers worldwide. The expectation behind this vision is to create superior solutions with high value for CAM also forecasts growth of approximately 5 percent for Western Europe in 2016. the customer through a technological edge and the achievements of all employees, while In contrast, the automobile markets in Brazil and Russia are not expected to experience assuming responsibility for the operational implementation, efficiency, and quality revitalization in 2016, according to CAM estimates. of processes and products at every level of the Group. The Balanced Scorecard compiled in 2014 and its specific target objectives aid in Demand for manual transmissions unabated the implementation of the strategy. It ensures that all initiatives and programs are aligned with the strategic objectives. All employees keep the strategic goals in mind as part of Demand for motor vehicles equipped with conventional internal combustion engines and their everyday work. manual transmissions is unabated worldwide. In 2015, the Balanced Scorecard was expanded by adding another topic: energy This is not likely to change in the foreseeable future. While electrically powered vehicles management. To be successful long-term, management and employees understand that are available in the market, high-volume production is still in its infancy. it is also important to operate sustainably – in both economic and ecological terms. The market still offers attractive growth potential for the Drive Technology Strategic Business Unit, which presently supplies synchronizers for approximately 15 percent of the worldwide market for vehicles equipped with conventional manual transmissions. This potential comes primarily from new contracts gained as a result of a clearly superior technological competitive position. The steel-forming technology developed in-house, combined with high-performance friction linings for synchronizers, gives HOERBIGER an unrivaled technological position. HOERBIGER synchronizers are therefore a performance-defining component of modern powerful dual-clutch systems. HOERBIGER friction systems have set standards in the international synchronizer market for years. 98 Growth drivers: powerful synchronizers and friction systems 99 “CUSTOMERS ARE In the traditional synchronizer segment, innovative system solutions are key drivers of growth. The HOERBIGER ClassicLINE DCT Type is the world’s first synchronizer featuring a design that is specifically optimized for dual-clutch transmissions (DCTs). HOERBIGER LOOKINGunveiled the innovative system solution inFORWARD June 2015 at the VDI Congress in Friedrichshafen, Germany, and in December at the CTI Symposium in Berlin, Germany.

Expansion and meaningful addition to organization TO THIS

The organizational structure of the Drive Technology Strategic Business Unit, which in Innovation January 2015 was adapted to the strategic objectives of the Balanced Scorecard, proved to be DEVELOPMENT.” successful. Nonetheless, it was expanded and supplemented in a meaningful way over the course of the year. The In-house Consulting department is a new addition. This young and creative team, HOERBIGER ClassicLINE DCT Type which is also favored as a way to prepare junior professionals from within the company’s own ranks for future managerial tasks, supports the global growth and efficiency programs of the Strategic Business Unit. The in-house consultants assume project management responsibility, With the ClassicLINE DCT Type, HOERBIGER The HOERBIGER ClassicLINE DCT Type relieving the line organization. developed the world’s first synchronizer that synchronizer also sets itself apart when features an optimized design specifically for it comes to noise. Thanks to special teeth, Drive Technology dual-clutch transmissions (DCTs). the synchronizer­ experiences lower angular Integration of the Commercial Vehicle Segment momentum during shifting. This minimizes As a consequence of the internal reorganization of the business activities of the existing Their advantage is that each synchronizer unit the audible “clack” sound during shifting, Automotive Comfort Systems Business Division and of the hydraulics activities within the saves approximately four millimeters compared which is often perceived as an unpleasant HOERBIGER Group, the Transmission Comfort Segment was integrated into the Drive to the previous standard design. The installation side-effect of dual-clutch transmissions. Technology Strategic Business Unit in June 2015. It has since formed the core of the new space needed for a complete DCT transmission Commercial Vehicle Segment. decreases by as much as 10 percent, opening The portfolio includes pneumatic shifting units and pneumatic gearshift support systems up valuable design freedom for transmission for trucks and buses, plus pressure control and pressure relief valves. manufacturers. The continued development of the Commercial Vehicle Segment centers around the acquisition of local customers in China, the world’s largest market for commercial vehicles. As a result of its shorter shift travel, the The medium-term goal is to expand the Commercial Vehicle Segment into another mainstay HOERBIGER ClassicLINE DCT Type also cuts of the Drive Technology Strategic Business Unit in China. the shifting time by up to 100 milliseconds, allowing the new design to achieve more dynamic gear shifts – a feature that is especially relevant in dual-clutch transmissions designed for spirited driving. 98 TheGrowth prototype drivers: slowly powerful gets synchronizers going. Andreas and Dempfle friction systemskeeps an eye 99 Inon the the traditional monitoring synchronizer screens. segment, “I conducted innovative system over 100solutions,000 are simulation key drivers of growth.calculations The HOERBIGER for this ClassicLINEsystem. What DCT Type we’re is the about world’s to firstsee synchronizeris the result featuring a designafter morethat is specificallythan a year optimized of hard for work.” dual-clutch transmissions (DCTs). HOERBIGER unveiled the innovative system solution in June 2015 at the VDI Congress in Friedrichshafen, Germany, and in December at the CTI Symposium in Berlin, Germany. When Andreas Dempfle reads the initial results a few minutes later, he appears visibly more relaxed: Expansion and meaningful addition to organization “All is good!” The organizational structure of the Drive Technology Strategic Business Unit, which in Innovation January 2015 was adapted to the strategic objectives of the Balanced Scorecard, proved to be Developers hope the components that Andreas Dempfle is testing on the test successful. Nonetheless, it was expanded and supplemented in a meaningful way over the benches of HOERBIGER Antriebstechnik GmbH will considerably improve course of the year. the shift comfort of dual-clutch transmissions. The In-house Consulting department is a new addition. This young and creative team, HOERBIGER ClassicLINE DCT Type which is also favored as a way to prepare junior professionals from within the company’s own The moment when a prototype must prove its worth for the first time is ranks for future managerial tasks, supports the global growth and efficiency programs of the always very special for Andreas Dempfle: “It’s always an exceptional event Strategic Business Unit. The in-house consultants assume project management responsibility, With the ClassicLINEfor me whenever DCT Type, anHOERBIGER advantage we expectThe HOERBIGER an innovation ClassicLINE to bring canDCT be Type relieving the line organization. developed themeasured world’s first this well,”synchronizer says the that manufacturing synchronizer engineering also sets itselfgraduate. apart when features an optimized design specifically for it comes to noise. Thanks to special teeth, Drive Technology dual-clutch transmissions (DCTs). the synchronizer­ experiences lower angular Integration of the Commercial Vehicle Segment “Specifically, when vehicles equipped with our systems shift more quickly, more quietly, as well as more smoothly. Our components significantlymomentum increase during driving shifting. comfort. This minimizes As a consequence of the internal reorganization of the business activities of the existing TheirCustomers advantage are already is that each looking synchronizer forward to unit this development.”the audible “clack” sound during shifting, Automotive Comfort Systems Business Division and of the hydraulics activities within the saves approximately four millimeters compared which is often perceived as an unpleasant HOERBIGER Group, the Transmission Comfort Segment was integrated into the Drive to the previousFor standard Andreas design. Dempfle, The installationthere is almost side-effect no greater of showdual-clutch of recognition transmissions. than Andreas Dempfle Technology Strategic Business Unit in June 2015. It has since formed the core of the new space neededthat for a of complete his contacts DCT transmission in the major automobile groups. Commercial Vehicle Segment. decreases by as much as 10 percent, opening The portfolio includes pneumatic shifting units and pneumatic gearshift support systems “Youup valuable develop design a certain freedom bond for to transmission the product over the course of the development period. for trucks and buses, plus pressure control and pressure relief valves. manufacturers.The greatest thing for me is when I see vehicles that contain our development work The continued development of the Commercial Vehicle Segment centers around the on the road. Then, we did a good job.” acquisition of local customers in China, the world’s largest market for commercial vehicles. As a result of its shorter shift travel, the The medium-term goal is to expand the Commercial Vehicle Segment into another mainstay HOERBIGER ClassicLINE DCT Type also cuts of the Drive Technology Strategic Business Unit in China. the shifting time by up to 100 milliseconds, allowing the new design to achieve more dynamic gear shifts – a feature that is especially relevant in dual-clutch transmissions designed for spirited driving. 98 Growth drivers: powerful synchronizers and friction systems 99 In the traditional synchronizer segment, innovative system solutions are key drivers of growth. The HOERBIGER ClassicLINE DCT Type is the world’s first synchronizer featuring a design that is specifically optimized for dual-clutch transmissions (DCTs). HOERBIGER unveiled the innovative system solution in June 2015 at the VDI Congress in Friedrichshafen, Germany, and in December at the CTI Symposium in Berlin, Germany.

Expansion and meaningful addition to organization

The organizational structure of the Drive Technology Strategic Business Unit, which in Innovation January 2015 was adapted to the strategic objectives of the Balanced Scorecard, proved to be successful. Nonetheless, it was expanded and supplemented in a meaningful way over the course of the year. The In-house Consulting department is a new addition. This young and creative team, HOERBIGER ClassicLINE DCT Type which is also favored as a way to prepare junior professionals from within the company’s own ranks for future managerial tasks, supports the global growth and efficiency programs of the Strategic Business Unit. The in-house consultants assume project management responsibility, With the ClassicLINE DCT Type, HOERBIGER The HOERBIGER ClassicLINE DCT Type relieving the line organization. developed the world’s first synchronizer that synchronizer also sets itself apart when features an optimized design specifically for it comes to noise. Thanks to special teeth, Drive Technology dual-clutch transmissions (DCTs). the synchronizer­ experiences lower angular Integration of the Commercial Vehicle Segment momentum during shifting. This minimizes As a consequence of the internal reorganization of the business activities of the existing Their advantage is that each synchronizer unit the audible “clack” sound during shifting, Automotive Comfort Systems Business Division and of the hydraulics activities within the saves approximately four millimeters compared which is often perceived as an unpleasant HOERBIGER Group, the Transmission Comfort Segment was integrated into the Drive to the previous standard design. The installation side-effect of dual-clutch transmissions. Technology Strategic Business Unit in June 2015. It has since formed the core of the new space needed for a complete DCT transmission Commercial Vehicle Segment. decreases by as much as 10 percent, opening The portfolio includes pneumatic shifting units and pneumatic gearshift support systems up valuable design freedom for transmission for trucks and buses, plus pressure control and pressure relief valves. manufacturers. The continued development of the Commercial Vehicle Segment centers around the acquisition of local customers in China, the world’s largest market for commercial vehicles. As a result of its shorter shift travel, the The medium-term goal is to expand the Commercial Vehicle Segment into another mainstay HOERBIGER ClassicLINE DCT Type also cuts of the Drive Technology Strategic Business Unit in China. the shifting time by up to 100 milliseconds, allowing the new design to achieve more dynamic gear shifts – a feature that is especially relevant in dual-clutch transmissions designed for spirited driving. 100 Carbon technology in the high-volume segment 101 “WELCOME TO Given decades of experience in tribology, HOERBIGER also has a clear edge in the development of friction systems. Whether the driving style is spirited or comfortable, HOERBIGER friction systems ensure smooth and reliable shifting in all situations. They remain quiet at both high THE VILLAGE OF and low temperatures, over the entire life of the vehicle.

FOURAttaining market leadership MILLION.” in China with technology and localization

Innovation Developing a leading position in the Chinese market is an essential strategic goal for HOERBIGER’s growth. In 2015, the Drive Technology Strategic Business Unit at the Changzhou site started production on schedule for a number of contracts from the Chinese automobile industry. The Drive Technology Strategic Business Unit was also pleased to again win HC200 Friction Lining attractive new projects in China in 2015.

INCH14 – Shift to Asia Modern synchronizers are high-performance As a result, the HOERBIGER HC200 carbon systems. Powerful carbon-based friction linings friction lining reduces manufacturing costs With the opening ceremony of a new manufacturing facility, the Drive Technology Strategic are increasingly becoming the standard, compared to bonded carbon linings. At the Business Unit completed its third expansion stage in January 2016 at the Changzhou site in Drive Technology especially in dual-clutch transmissions, which same time, it is far superior to metallic linings China. due to the use of high-additive transmission in terms of performance and oil compatibility. This marked the full localization of all products and services needed to offer complete fluids cannot be equipped with metallic friction In the HOERBIGER portfolio, it makes carbon synchronizer systems for car transmissions in China. materials. technology interesting for the high-volume In total, 50 employees were involved in the capacity expansion. Sub-projects addressed all segment by closing the gap between traditional the areas needed to develop Chinese production and for the associated transfer of know-how: Manufacturing processes for synchronizer rings sintered friction linings and the high-end HC300 equipped with carbon linings are very complex. and HC310 bonded carbon friction linings. training the employees in China Unlike metallic friction systems, the carbon plant technology for full-scale production: metal forming, tool and die design, lining normally must be bonded to a previously vibratory grinding, nitriding, bonding, and system assembly formed synchronizer ring. expansion of the new manufacturing facility establishment of local suppliers for steel, stampings, tool replacement parts, This is not the case with the new HOERBIGER and operating resources. HC200 carbon friction lining, however. Here, the friction material is not produced separately, but The Changzhou location had previously reached an important milestone for localization in is instead applied directly to the formed support China in the spring of 2015, when it was awarded ISO 14001 environmental certification by ring and cured together with this ring to yield the TÜV SÜD China. The auditors were particularly impressed by the plant’s water treatment finished synchronizer ring. The friction lining is system. They also recognized the processes for waste management and the prevention of based on carbon particles and active frictional environmental damage as exemplary practices. Following the certification of the plant in fillers, which are integrated into a special resin Changzhou, all the locations of the Drive Technology Strategic Business Unit are certified to matrix that resists high temperatures. ISO 14001. 100 The smells, the food, the business partners, the mentality: when 101 Carbon technology in the high-volume segment Fabian Schmidt landed in Changzhou for the first time, everything in Given decades of experience in tribology, HOERBIGER also has a clear edge in the development the city, which in spite of its four million inhabitants is only a village of friction systems. Whether the driving style is spirited or comfortable, HOERBIGER friction systems ensure smooth and reliable shifting in all situations. They remain quiet at both high by Chinese standards, was new to him. Not even two years later, he is and low temperatures, over the entire life of the vehicle. almost at home here and has brought a piece of his professional home to China: HOERBIGER’s metal forming and bonding technology.

“InterculturalAttaining market skills are leadership expected of every in China employee with these technology days. While and localizing localization metal forming and bonding for synchronizer rings in China, I learned what this really means.” Innovation Developing a leading position in the Chinese market is an essential strategic goal for HOERBIGER’s growth. In 2015, the Drive Technology Strategic Business Unit at the Changzhou As the Project Leader, Fabian Schmidt had to establish compatibility between site started production on schedule for a number of contracts from the Chinese automobile China and Germany at all levels. At the same time, he himself had to learn industry. The Drive Technology Strategic Business Unit was also pleased to again win to understand an environment that was new to him. “The laws and approval attractive new projects in China in 2015. HC200 Friction Lining processes are different than in Germany, as is the employees’ know-how, or the workflows of the sub-contractors.” INCH14 – Shift to Asia Modern synchronizers are high-performance As a result, the HOERBIGER HC200 carbon “To achieve our goal, clear and resolute leadership was needed from me, yet I also had to systems. Powerful carbon-based friction linings friction lining reduces manufacturing costs With the opening ceremony of a new manufacturing facility, the Drive Technology Strategic

be considerate of the specific framework conditions in China.” Drive Technology are increasingly becoming the standard, compared to bonded carbon linings. At the Business Unit completed its third expansion stage in January 2016 at the Changzhou site in especially in dual-clutch transmissions, which same time, it is far superior to metallic linings China. Fabian Schmidt mastered this challenge. When the first synchronizer due to the use of high-additive transmission in terms of performance and oil compatibility. This marked the full localization of all products and services needed to offer complete ring produced in the local bonding operation rolled off the line in China, fluids cannot be equipped with metallic friction In the HOERBIGER portfolio, it makes carbon synchronizer systems for car transmissions in China. excitement was also high in Germany. materials. technology interesting for the high-volume In total, 50 employees were involved in the capacity expansion. Sub-projects addressed all segment by closing the gap between traditional the areas needed to develop Chinese production and for the associated transfer of know-how: Fabian Schmidt “The amount of support I received from my colleagues in Germany as a result of their Manufacturing processes for synchronizer rings sintered friction linings and the high-end HC300 experience was overwhelming. In China, I had the opportunity to work with a very young equipped with carbon linings are very complex. and HC310 bonded carbon friction linings. training the employees in China and dynamic team that, over the course of the project, has grown very cohesive. Unlike metallic friction systems, the carbon plant technology for full-scale production: metal forming, tool and die design, All of this helped us successfully expedite the localization of production in China.” lining normally must be bonded to a previously vibratory grinding, nitriding, bonding, and system assembly formed synchronizer ring. expansion of the new manufacturing facility establishment of local suppliers for steel, stampings, tool replacement parts, This is not the case with the new HOERBIGER and operating resources. HC200 carbon friction lining, however. Here, the friction material is not produced separately, but The Changzhou location had previously reached an important milestone for localization in is instead applied directly to the formed support China in the spring of 2015, when it was awarded ISO 14001 environmental certification by ring and cured together with this ring to yield the TÜV SÜD China. The auditors were particularly impressed by the plant’s water treatment finished synchronizer ring. The friction lining is system. They also recognized the processes for waste management and the prevention of based on carbon particles and active frictional environmental damage as exemplary practices. Following the certification of the plant in fillers, which are integrated into a special resin Changzhou, all the locations of the Drive Technology Strategic Business Unit are certified to matrix that resists high temperatures. ISO 14001. 100 101 Carbon technology in the high-volume segment

Given decades of experience in tribology, HOERBIGER also has a clear edge in the development of friction systems. Whether the driving style is spirited or comfortable, HOERBIGER friction systems ensure smooth and reliable shifting in all situations. They remain quiet at both high and low temperatures, over the entire life of the vehicle.

Attaining market leadership in China with technology and localization

Innovation Developing a leading position in the Chinese market is an essential strategic goal for HOERBIGER’s growth. In 2015, the Drive Technology Strategic Business Unit at the Changzhou site started production on schedule for a number of contracts from the Chinese automobile industry. The Drive Technology Strategic Business Unit was also pleased to again win HC200 Friction Lining attractive new projects in China in 2015.

INCH14 – Shift to Asia Modern synchronizers are high-performance As a result, the HOERBIGER HC200 carbon systems. Powerful carbon-based friction linings friction lining reduces manufacturing costs With the opening ceremony of a new manufacturing facility, the Drive Technology Strategic are increasingly becoming the standard, compared to bonded carbon linings. At the Business Unit completed its third expansion stage in January 2016 at the Changzhou site in Drive Technology especially in dual-clutch transmissions, which same time, it is far superior to metallic linings China. due to the use of high-additive transmission in terms of performance and oil compatibility. This marked the full localization of all products and services needed to offer complete fluids cannot be equipped with metallic friction In the HOERBIGER portfolio, it makes carbon synchronizer systems for car transmissions in China. materials. technology interesting for the high-volume In total, 50 employees were involved in the capacity expansion. Sub-projects addressed all segment by closing the gap between traditional the areas needed to develop Chinese production and for the associated transfer of know-how: Manufacturing processes for synchronizer rings sintered friction linings and the high-end HC300 equipped with carbon linings are very complex. and HC310 bonded carbon friction linings. training the employees in China Unlike metallic friction systems, the carbon plant technology for full-scale production: metal forming, tool and die design, lining normally must be bonded to a previously vibratory grinding, nitriding, bonding, and system assembly formed synchronizer ring. expansion of the new manufacturing facility establishment of local suppliers for steel, stampings, tool replacement parts, This is not the case with the new HOERBIGER and operating resources. HC200 carbon friction lining, however. Here, the friction material is not produced separately, but The Changzhou location had previously reached an important milestone for localization in is instead applied directly to the formed support China in the spring of 2015, when it was awarded ISO 14001 environmental certification by ring and cured together with this ring to yield the TÜV SÜD China. The auditors were particularly impressed by the plant’s water treatment finished synchronizer ring. The friction lining is system. They also recognized the processes for waste management and the prevention of based on carbon particles and active frictional environmental damage as exemplary practices. Following the certification of the plant in fillers, which are integrated into a special resin Changzhou, all the locations of the Drive Technology Strategic Business Unit are certified to matrix that resists high temperatures. ISO 14001. 102 103 “DAILY VISIBLE PROGRESS

HHDTS – a new force in China MOTIVATESProduction as a growth driver ME.”

Strategically the most important project in 2015 for the Business Unit in terms of further In the Drive Technology Strategic Business Unit, manufacturing technology and superior growth in China was the agreement on a joint venture with Chengdu HAONENG Technology production systems are crucial drivers for the successful performance of the individual Co., Ltd., Chengdu, China. production sites. HAONENG is one of China’s leading manufacturers of synchronizer components. For partners to the automotive industry, standing up to international competitive pressure In Luzhou, HAONENG manufactures brass synchronizer rings, engagement bodies, and means continually keeping up with the learning curve that follows consumer prices. In other crucial components for dual-clutch transmissions. Known in the industry under the Luzhou words: cost transparency and cost management are crucial variables when it comes to the Changjiang brand, the plant is the leading producer of synchronizer rings in China. The Chengdu economic success of a long-term contract. plant specializes in forged steel synchronizer rings for passenger cars and commercial This requires more than just continuous improvements and individual streamlining steps. vehicles. The Chongqing plant is a professional manufacturer of sleeves and hub systems, Production also expects to develop entirely new manufacturing methods and processes with supplying the market with excellent-quality, cost-efficient products. “next technology” projects, so as to contribute to the Strategic Business Unit’s cost Drive Technology Operating under the name HAONENG HOERBIGER DriveTech (Shanghai) Co., Ltd (“HHDTS”), leadership. the cooperation agreed within the scope of the newly founded joint venture covers the The location in Changzhou, China, delivered an outstanding performance in 2015. engineering, sale, and trade of synchronizer components and systems for automobile trans- The young and highly motivated team successfully started numerous new projects within the missions in China. planned schedules and budgets, and overcame last-minute fluctuations in production volume The joint venture entity commenced operations on March 1, 2016 at its headquarters in with great flexibility. Shanghai. Drive Technology’s lead plants additionally continue to ensure the positive development The vision and mission of HOERBIGER and HAONENG are an excellent fit. The vision of the Strategic Business Unit. Plant 1 in Schongau, Germany, specializes in traditional that the newly appointed management has formulated for the joint venture is clear: synchronizer and friction systems, while the plant in Oberstenfeld, Germany, specializes in “We synchronize – 我们同步一致”. sleeves. Both were of decisive help in achieving the strategic and operational targets. The Penzberg plant, which specializes in stamping and metal forming technology, was able to create new and unique manufacturing features in 2015, and so make an important contribution to securing the business location. Following difficult times, the Waterloo plant in 2015 was again sustainably profitable for the second year in a row. 102 The Oberstenfeld plant of the Drive Technology Strategic Business Unit 103 is undergoing a profound transformation: traditional job shop production, where an area in manufacturing – organized by technology – is assigned to each processing step, is being replaced with line production. This requires the manufacturing process to be broken down into segments, and the layout of the machines follows the process flow.

HHDTS – a new force in China “WhenProduction we segment as a the growth production driver process, in other words organize it according to the flow of the items and no longer separately by departments, and pace the manufacturing Strategically the most important project in 2015 for the Business Unit in terms of further In the Drive Technology Strategic Business Unit, manufacturing technology and superior steps in cycles that eliminate waiting periods, we need less storage space for semi-­ growth in China was the agreement on a joint venture with Chengdu HAONENG Technology production systems are crucial drivers for the successful performance of the individual finished products. This means smaller buffers, and lower capital commitment.” Co., Ltd., Chengdu, China. production sites. HAONENG is one of China’s leading manufacturers of synchronizer components. For partners to the automotive industry, standing up to international competitive pressure Dr. Christian Reuter, Head of the Operations Center in the Drive Technology In Luzhou, HAONENG manufactures brass synchronizer rings, engagement bodies, and means continually keeping up with the learning curve that follows consumer prices. In other Strategic Business Unit, explains the change. In this function, he is in charge crucial components for dual-clutch transmissions. Known in the industry under the Luzhou words: cost transparency and cost management are crucial variables when it comes to the of “Segmentation” in the Oberstenfeld plant, serving as the Project Leader. Changjiang brand, the plant is the leading producer of synchronizer rings in China. The Chengdu economic success of a long-term contract. plant specializes in forged steel synchronizer rings for passenger cars and commercial This requires more than just continuous improvements and individual streamlining steps. “Segmentation in Oberstenfeld is our pilot project,” he comments. “Here, we evaluate to vehicles. The Chongqing plant is a professional manufacturer of sleeves and hub systems, Production also expects to develop entirely new manufacturing methods and processes with

what extent it is useful to switch other plants in the Drive Technology Strategic Business Drive Technology supplying the market with excellent-quality, cost-efficient products. “next technology” projects, so as to contribute to the Strategic Business Unit’s cost Unit to line production.” Operating under the name HAONENG HOERBIGER DriveTech (Shanghai) Co., Ltd (“HHDTS”), leadership. the cooperation agreed within the scope of the newly founded joint venture covers the The location in Changzhou, China, delivered an outstanding performance in 2015. Profound modifications such as changes to the manufacturing processes engineering, sale, and trade of synchronizer components and systems for automobile trans- The young and highly motivated team successfully started numerous new projects within the ­require careful planning, and advantages and disadvantages must be missions in China. planned schedules and budgets, and overcame last-minute fluctuations in production volume weighed conscientiously. It helps with the assessment to be able to refer to The joint venture entity commenced operations on March 1, 2016 at its headquarters in with great flexibility. Dr. Christian Reuter pilot or reference projects where segmentation is already bearing fruit. Shanghai. Drive Technology’s lead plants additionally continue to ensure the positive development The vision and mission of HOERBIGER and HAONENG are an excellent fit. The vision of the Strategic Business Unit. Plant 1 in Schongau, Germany, specializes in traditional With this in mind, the first manufacturing segment was set up according to that the newly appointed management has formulated for the joint venture is clear: synchronizer and friction systems, while the plant in Oberstenfeld, Germany, specializes in line production principles in Oberstenfeld in November 2015. The success “We synchronize – 我们同步一致”. sleeves. Both were of decisive help in achieving the strategic and operational targets. is clear. The Penzberg plant, which specializes in stamping and metal forming technology, was able to create new and unique manufacturing features in 2015, and so make an important “We were able to increase utilization of the machines in this part of Operations by contribution to securing the business location. Following difficult times, the Waterloo plant approximately 20 percentage points. This makes sense and requires no explanation in 2015 was again sustainably profitable for the second year in a row. on my part. A result like that makes the undertaking a sure-fire success,” adds Dr. Christian Reuter. 102 103

HHDTS – a new force in China Production as a growth driver

Strategically the most important project in 2015 for the Business Unit in terms of further In the Drive Technology Strategic Business Unit, manufacturing technology and superior growth in China was the agreement on a joint venture with Chengdu HAONENG Technology production systems are crucial drivers for the successful performance of the individual Co., Ltd., Chengdu, China. production sites. HAONENG is one of China’s leading manufacturers of synchronizer components. For partners to the automotive industry, standing up to international competitive pressure In Luzhou, HAONENG manufactures brass synchronizer rings, engagement bodies, and means continually keeping up with the learning curve that follows consumer prices. In other crucial components for dual-clutch transmissions. Known in the industry under the Luzhou words: cost transparency and cost management are crucial variables when it comes to the Changjiang brand, the plant is the leading producer of synchronizer rings in China. The Chengdu economic success of a long-term contract. plant specializes in forged steel synchronizer rings for passenger cars and commercial This requires more than just continuous improvements and individual streamlining steps. vehicles. The Chongqing plant is a professional manufacturer of sleeves and hub systems, Production also expects to develop entirely new manufacturing methods and processes with supplying the market with excellent-quality, cost-efficient products. “next technology” projects, so as to contribute to the Strategic Business Unit’s cost Drive Technology Operating under the name HAONENG HOERBIGER DriveTech (Shanghai) Co., Ltd (“HHDTS”), leadership. the cooperation agreed within the scope of the newly founded joint venture covers the The location in Changzhou, China, delivered an outstanding performance in 2015. engineering, sale, and trade of synchronizer components and systems for automobile trans- The young and highly motivated team successfully started numerous new projects within the missions in China. planned schedules and budgets, and overcame last-minute fluctuations in production volume The joint venture entity commenced operations on March 1, 2016 at its headquarters in with great flexibility. Shanghai. Drive Technology’s lead plants additionally continue to ensure the positive development The vision and mission of HOERBIGER and HAONENG are an excellent fit. The vision of the Strategic Business Unit. Plant 1 in Schongau, Germany, specializes in traditional that the newly appointed management has formulated for the joint venture is clear: synchronizer and friction systems, while the plant in Oberstenfeld, Germany, specializes in “We synchronize – 我们同步一致”. sleeves. Both were of decisive help in achieving the strategic and operational targets. The Penzberg plant, which specializes in stamping and metal forming technology, was able to create new and unique manufacturing features in 2015, and so make an important contribution to securing the business location. Following difficult times, the Waterloo plant in 2015 was again sustainably profitable for the second year in a row. 104 Synergies, modern production technology … 105 “WHO KNOWS WHAT The creation of the Global Production & Technology department and the development of a One goal for 2016 is to create the conditions for sustainable growth in Europe through new Global Operations Center in July 2015 were important steps toward greater flexibility and initiatives. Increasing the vertical integration for sleeves made of steel will be one focal area. efficiency in Production. In the future, the plan is to manufacture some of the required preliminary stages in-house, The new structure took the place of the Operations department and its division into the WE’LLrather than externally as at present. Sleeve Systems and Friction Systems Product Units. Close cooperation between Procurement and Production is essential for these types of The new Global Production & Technology department now bears responsibility for the growth projects. As part of the Growth 500+ project, in 2015 a cross-departmental and manufacturing plants of the Drive Technology Strategic Business Unit, as well as for the Metal DISCOVERcross-location team achieved considerable reductions …” in material expenses. The resulting cost Forming Technology Center of Competence (CoC) and for Industrial Engineering. advantage improved competitiveness and aided the Drive Technology Strategic Business Unit The Global Operations Center is in charge of production planning. Process optimization in acquiring new customer orders in 2015. methods such as lean management and supply chain management will improve processes and cut production costs, as well as quality standards. Beyond Synchro: drive concepts for the future One contribution that Penzberg is making to safeguard the site’s competitiveness is to become fully integrated into the synchronizer manufacturing process. The first steps began in The order books of the Drive Technology Strategic Business Unit are well-stocked for the 2015: in addition to disks for automatic transmissions, HOERBIGER Penzberg GmbH now also coming years. produces synchronizer clutch components. Management and employees will not rest on their laurels, however. While the Strategic At the Schongau location, a central HOERBIGER tool and die shop was established by Business Unit is expected to grow sustainably and remain successful in its established core consolidating machining expertise from HOERBIGER Kompressortechnik GmbH’s Tool & Die business of synchronizers for many years to come, management has already set the course to

Design with the corresponding resources of HOERBIGER Antriebstechnik GmbH under the begin molding the future. Drive Technology management of the Drive Technology Strategic Business Unit. The merged know-how of the two teams, plus better utilization of machines and equipment, has created valuable synergies The efforts center around the mobility systems of the future, which will require new drive for everyone involved. In the future, expensive new equipment will be procured and operated concepts. considerably more economically. At the Oberstenfeld site, the Drive Technology Strategic Business Unit is investing in new Under the motto “Beyond Synchro,” the Drive Technology Strategic Business Unit launched a low-pressure carburizing equipment for hardening the sleeves manufactured here. number of initiatives in 2015. Their goal is to align the HOERBIGER brand, and consequently The new machine will be put into operation in October 2016. A predecessor of this machine, the Business Segments, with new technologies and products for the drive train of the future, the pusher-type furnace of HOERBIGER SynchronTechnik in Oberstenfeld, was decommis- and to position HOERBIGER as a partner to the automotive industry. sioned in the fall of 2015. The furnace had been in use for 30 years, hardening some 35 million This much is certain: many of the competencies that are available now in the Drive sleeves during this time. Technology Strategic Business Unit will also be required for future vehicle architectures such as hybrid drives. Additionally, the new capabilities that will be needed will have to be … and new growth projects developed in the coming years, either organically or, if need be, through acquisitions. To spur the debate on this challenge, the Drive Technology Strategic Business Unit created Last but not least, the strategic growth projects being pursued in Procurement and Production a dedicated room for creative imagination – the HOERBIGER Innovation Room in Schongau. are also of utmost importance for the continued development of the Drive Technology Strategic Business Unit. With the expansion of manufacturing capacities in China completed in January 2016, the Drive Technology Strategic Business Unit concluded an essential strategic growth project in Asia. 104 Synergies, modern production technology … Michael Studli is a discoverer. When he speaks about his work, 105 The creation of the Global Production & Technology department and the development of a Oneit’s goalabout for 2016the isdiscovery to create the of conditions new continents, for sustainable the growth right inequipment, Europe through new Global Operations Center in July 2015 were important steps toward greater flexibility and initiatives.and travels Increasing to exciting the vertical destinations. integration forThese sleeves are made the of images steel will that be one focal area. efficiency in Production. In­Michael Studli the future, the plan likes is to to manufacture use when some speaking of the required about innovationpreliminary stages in the in-house, The new structure took the place of the Operations department and its division into the rather than externally as at present. Drive ­Technology Strategic Business Unit. Sleeve Systems and Friction Systems Product Units. Close cooperation between Procurement and Production is essential for these types of The new Global Production & Technology department now bears responsibility for the growth projects. As part of the Growth 500+ project, in 2015 a cross-departmental and The native Canadian came to Europe to become acquainted with European manufacturing plants of the Drive Technology Strategic Business Unit, as well as for the Metal cross-location team achieved considerable reductions in material expenses. The resulting cost corporate culture while pursuing his Master’s degree. Even before he Forming Technology Center of Competence (CoC) and for Industrial Engineering. advantage improved competitiveness and aided the Drive Technology Strategic Business Unit ­graduated, HOERBIGER recruiters kept an eye on Michael Studli – and The Global Operations Center is in charge of production planning. Process optimization in acquiring new customer orders in 2015. ended up bringing him on board of HOERBIGER Antriebstechnik GmbH methods such as lean management and supply chain management will improve processes in Schongau. and cut production costs, as well as quality standards. Beyond Synchro: drive concepts for the future One contribution that Penzberg is making to safeguard the site’s competitiveness is to “I had a great opportunity here to write my Master’s thesis. That was my first contact with become fully integrated into the synchronizer manufacturing process. The first steps began in The order books of the Drive Technology Strategic Business Unit are well-stocked for the Beyond Synchro, the innovation project of the Drive Technology Strategic Business Unit.” 2015: in addition to disks for automatic transmissions, HOERBIGER Penzberg GmbH now also coming years. produces synchronizer clutch components. Management and employees will not rest on their laurels, however. While the Strategic HOERBIGER hired Michael Studli immediately after he earned his Master’s At the Schongau location, a central HOERBIGER tool and die shop was established by Business Unit is expected to grow sustainably and remain successful in its established core degree – giving him great responsibility. As Head of Global Business Innovation, consolidating machining expertise from HOERBIGER Kompressortechnik GmbH’s Tool & Die business of synchronizers for many years to come, management has already set the course to he is directly involved in developing the strategy of the Business Unit. His

Design with the corresponding resources of HOERBIGER Antriebstechnik GmbH under the begin molding the future. Drive Technology topic is innovations that go beyond existing synchronizer technology – well, management of the Drive Technology Strategic Business Unit. The merged know-how of the Beyond Synchro. two teams, plus better utilization of machines and equipment, has created valuable synergies The efforts center around the mobility systems of the future, which will require new drive for everyone involved. In the future, expensive new equipment will be procured and operated concepts. “What I do here is pioneering work. HOERBIGER is a good, sound ship with an outstanding considerably more economically. crew. We’re setting sail now – on the journey to solutions for the drive technology of At the Oberstenfeld site, the Drive Technology Strategic Business Unit is investing in new Under the motto “Beyond Synchro,” the Drive Technology Strategic Business Unit launched a the future.” Michaellow-pressure Studli carburizing equipment for hardening the sleeves manufactured here. number of initiatives in 2015. Their goal is to align the HOERBIGER brand, and consequently The new machine will be put into operation in October 2016. A predecessor of this machine, the Business Segments, with new technologies and products for the drive train of the future, Michael Studli learned a great deal even in the first few months of working the pusher-type furnace of HOERBIGER SynchronTechnik in Oberstenfeld, was decommis- and to position HOERBIGER as a partner to the automotive industry. for HOERBIGER. To expand into entirely new areas of innovation, he first sioned in the fall of 2015. The furnace had been in use for 30 years, hardening some 35 million This much is certain: many of the competencies that are available now in the Drive must understand HOERBIGER, the company’s core competencies, the existing sleeves during this time. Technology Strategic Business Unit will also be required for future vehicle architectures technological development, and the qualities of the company. “Advancing such as hybrid drives. Additionally, the new capabilities that will be needed will have to be innovations has a lot to do with knowing your own role.” For HOERBIGER developed in the coming years, either organically or, if need be, through acquisitions. … and new growth projects this means visionary thinking, outside of the niche of synchronizer technology. To spur the debate on this challenge, the Drive Technology Strategic Business Unit created “If we accomplish that,” Michael Studli adds, “we will be perfectly positioned Last but not least, the strategic growth projects being pursued in Procurement and Production a dedicated room for creative imagination – the HOERBIGER Innovation Room in Schongau. for the Beyond Synchro expedition.” are also of utmost importance for the continued development of the Drive Technology Strategic Business Unit. With the expansion of manufacturing capacities in China completed in January 2016, the Drive Technology Strategic Business Unit concluded an essential strategic growth project in Asia. 104 Synergies, modern production technology … 105 The creation of the Global Production & Technology department and the development of a One goal for 2016 is to create the conditions for sustainable growth in Europe through new Global Operations Center in July 2015 were important steps toward greater flexibility and initiatives. Increasing the vertical integration for sleeves made of steel will be one focal area. efficiency in Production. In the future, the plan is to manufacture some of the required preliminary stages in-house, The new structure took the place of the Operations department and its division into the rather than externally as at present. Sleeve Systems and Friction Systems Product Units. Close cooperation between Procurement and Production is essential for these types of The new Global Production & Technology department now bears responsibility for the growth projects. As part of the Growth 500+ project, in 2015 a cross-departmental and manufacturing plants of the Drive Technology Strategic Business Unit, as well as for the Metal cross-location team achieved considerable reductions in material expenses. The resulting cost Forming Technology Center of Competence (CoC) and for Industrial Engineering. advantage improved competitiveness and aided the Drive Technology Strategic Business Unit The Global Operations Center is in charge of production planning. Process optimization in acquiring new customer orders in 2015. methods such as lean management and supply chain management will improve processes and cut production costs, as well as quality standards. Beyond Synchro: drive concepts for the future One contribution that Penzberg is making to safeguard the site’s competitiveness is to become fully integrated into the synchronizer manufacturing process. The first steps began in The order books of the Drive Technology Strategic Business Unit are well-stocked for the 2015: in addition to disks for automatic transmissions, HOERBIGER Penzberg GmbH now also coming years. produces synchronizer clutch components. Management and employees will not rest on their laurels, however. While the Strategic At the Schongau location, a central HOERBIGER tool and die shop was established by Business Unit is expected to grow sustainably and remain successful in its established core consolidating machining expertise from HOERBIGER Kompressortechnik GmbH’s Tool & Die business of synchronizers for many years to come, management has already set the course to

Design with the corresponding resources of HOERBIGER Antriebstechnik GmbH under the begin molding the future. Drive Technology management of the Drive Technology Strategic Business Unit. The merged know-how of the two teams, plus better utilization of machines and equipment, has created valuable synergies The efforts center around the mobility systems of the future, which will require new drive for everyone involved. In the future, expensive new equipment will be procured and operated concepts. considerably more economically. At the Oberstenfeld site, the Drive Technology Strategic Business Unit is investing in new Under the motto “Beyond Synchro,” the Drive Technology Strategic Business Unit launched a low-pressure carburizing equipment for hardening the sleeves manufactured here. number of initiatives in 2015. Their goal is to align the HOERBIGER brand, and consequently The new machine will be put into operation in October 2016. A predecessor of this machine, the Business Segments, with new technologies and products for the drive train of the future, the pusher-type furnace of HOERBIGER SynchronTechnik in Oberstenfeld, was decommis- and to position HOERBIGER as a partner to the automotive industry. sioned in the fall of 2015. The furnace had been in use for 30 years, hardening some 35 million This much is certain: many of the competencies that are available now in the Drive sleeves during this time. Technology Strategic Business Unit will also be required for future vehicle architectures such as hybrid drives. Additionally, the new capabilities that will be needed will have to be … and new growth projects developed in the coming years, either organically or, if need be, through acquisitions. To spur the debate on this challenge, the Drive Technology Strategic Business Unit created Last but not least, the strategic growth projects being pursued in Procurement and Production a dedicated room for creative imagination – the HOERBIGER Innovation Room in Schongau. are also of utmost importance for the continued development of the Drive Technology Strategic Business Unit. With the expansion of manufacturing capacities in China completed in January 2016, the Drive Technology Strategic Business Unit concluded an essential strategic growth project in Asia. 106 HYDRAULIC SYSTEMS BUSINESS DIVISION 107 COMPACT POWER Hydraulics

The Hydraulic Systems Business Division focuses on powerful components and systems for applications in the automotive industry, mechanical engineering, medical technology, and the field of loading comfort.

In 2015, the newly created Hydraulic Systems Business Division achieved sales of 110.5 million euros. Sound growth rates came from the Compact Motion Technology Business Segment. In contrast, sales declined in the Roof Hydraulics Segment as a result of the decrease in demand for convertible cars worldwide. 108 “Pooling the hydraulics expertise in one unit creates considerable growth Type 7: our latest hydraulic power unit 109 potential for all Business Segments. We will shape our future together in “WEIn 2015, HOERBIGER WANT developed another innovative, TO electrically activated compact hydraulic drive system as a universal unit for single-axis applications – the HOERBIGER Type 7. a market-oriented corporate spirit.”

Gerhard Messmer Head of Hydraulic Systems Business Division CONVINCE OUR

Compact power solution provider CUSTOMERS.”

The new customer- and market-oriented structure supports the goal of developing HOERBIGER Innovation from a pure component manufacturer into an expert solution provider for compact power in the field of hydraulics – especially in the automotive, machinery and medical technology market segments, as well as in custom motion solutions for sports boats and recreational watercraft. Type 7 Power Unit Customers in Europe are served by the sales teams of the Altenstadt, Barbing, and Schongau locations in Germany. The Business Division assists its customers in Asia from the Wuxi location in China, especially for important and high-volume relationships in the mechanical The goal of the engineers was to achieve high engineering and special-purpose machinery industry, and the growing client base in medical flexibility through design and production technology. The employees at the Auburn, Alabama, USA, site are highly qualified contacts standardization, so as to be able to address a for customers in North America. wide variety of customer requirements quickly and without major design complexity. This will

also make it possible to cover multifaceted Hydraulics Compact Hydraulics Business Segment requirements in other market segments, beyond The portfolio of the Compact Hydraulics Segment includes compact hydraulic power packs automotive applications. and modular systems for the automotive industry, RVs, recreational watercraft, and applica- tions in medical technology. The global market for convertible top drives continues to post no noteworthy growth. It is therefore all the more important to acquire the remaining production orders with newly developed power units. In 2015, the innovative Type 6 power unit was one of the products that aided HOERBIGER in expanding market share in market segments where hydraulic roof drives continue to be indispensable. While simple two-cylinder systems have been largely displaced by electric units, there are almost no reliable alternatives to hydraulics for the complex drives needed for heavy, multi-piece steel roofs. 108 “Pooling the hydraulics expertise in one unit creates considerable growth TypeMartin 7: our Storz latest walks hydraulic through power unitthe corridors of the HOERBIGER office 109 potential for all Business Segments. We will shape our future together in Inbuilding 2015, HOERBIGER in Schongau developed in a anotherbit of a innovative, hurry. In electricallypassing, heactivated absent-mindedly compact hydraulic drive system as a universal unit for single-axis applications – the HOERBIGER Type 7. a market-oriented corporate spirit.” greets a colleague – an increasingly clear picture is forming in his

Gerhard Messmer mind that he does not want to lose. Finally, he knocks on a door and Head of Hydraulic Systems Business Division enters the office.

“I have an idea.” Compact power solution provider This happens quite frequently. “Suddenly, two or three components fit The new customer- and market-oriented structure supports the goal of developing HOERBIGER Innovation together exactly, and there is the idea that I immediately have to discuss from a pure component manufacturer into an expert solution provider for compact power with my colleagues or my boss. If it were up to me, I would start with the in the field of hydraulics – especially in the automotive, machinery and medical technology implementation right away,” says Martin Storz. He is Head of Advanced market segments, as well as in custom motion solutions for sports Engineering in the Compact Hydraulics Segment of the Hydraulic Systems boats and recreational watercraft. Type 7 Division.Power His Unitlatest project is the Type 7 power unit, an electrically activated Customers in Europe are served by the sales teams of the Altenstadt, Barbing, and Schongau compact hydraulic actuator for multifaceted applications in industry. locations in Germany. The Business Division assists its customers in Asia from the Wuxi location in China, especially for important and high-volume relationships in the mechanical “OurThe goal idea of is the to developengineers a modularwas to achieve system high for hydraulic actuators. To do so, we must engineering and special-purpose machinery industry, and the growing client base in medical flexibilitydevelop thesethrough power design units and as production flexibly as possible.” technology. The employees at the Auburn, Alabama, USA, site are highly qualified contacts standardization, so as to be able to address a for customers in North America. wide variety ofThe customer focus always requirements lies on quicklythe benefit for the customer. “As developers, we and without majorwant designto convince complexity. our customers. This will That is what drives us. In spite of all the love

also make it possible to cover multifaceted Hydraulics Compact Hydraulics Business Segment of development, every one of us has learned that not every idea is good from requirementsthe in other start, market or can segments, be implemented.” beyond The portfolio of the Compact Hydraulics Segment includes compact hydraulic power packs automotive applications. Martin Storz and modular systems for the automotive industry, RVs, recreational watercraft, and applica- Martin Storz compares his work in Advanced Engineering to that of a tions in medical technology. meerkat: keep digging diligently, but emerge from the hole occasionally The global market for convertible top drives continues to post no noteworthy growth. to look around. It is therefore all the more important to acquire the remaining production orders with newly developed power units. “Otherwise we lose sight of the context and the bigger goal. An idea is born quickly. Still, In 2015, the innovative Type 6 power unit was one of the products that aided HOERBIGER we must also think it through. This is our job now with the HOERBIGER Type 7 power unit.” in expanding market share in market segments where hydraulic roof drives continue to be indispensable. While simple two-cylinder systems have been largely displaced by electric units, there are almost no reliable alternatives to hydraulics for the complex drives needed for heavy, multi-piece steel roofs. 108 “Pooling the hydraulics expertise in one unit creates considerable growth Type 7: our latest hydraulic power unit 109 potential for all Business Segments. We will shape our future together in In 2015, HOERBIGER developed another innovative, electrically activated compact hydraulic drive system as a universal unit for single-axis applications – the HOERBIGER Type 7. a market-oriented corporate spirit.”

Gerhard Messmer Head of Hydraulic Systems Business Division

Compact power solution provider

The new customer- and market-oriented structure supports the goal of developing HOERBIGER Innovation from a pure component manufacturer into an expert solution provider for compact power in the field of hydraulics – especially in the automotive, machinery and medical technology market segments, as well as in custom motion solutions for sports boats and recreational watercraft. Type 7 Power Unit Customers in Europe are served by the sales teams of the Altenstadt, Barbing, and Schongau locations in Germany. The Business Division assists its customers in Asia from the Wuxi location in China, especially for important and high-volume relationships in the mechanical The goal of the engineers was to achieve high engineering and special-purpose machinery industry, and the growing client base in medical flexibility through design and production technology. The employees at the Auburn, Alabama, USA, site are highly qualified contacts standardization, so as to be able to address a for customers in North America. wide variety of customer requirements quickly and without major design complexity. This will

also make it possible to cover multifaceted Hydraulics Compact Hydraulics Business Segment requirements in other market segments, beyond The portfolio of the Compact Hydraulics Segment includes compact hydraulic power packs automotive applications. and modular systems for the automotive industry, RVs, recreational watercraft, and applica- tions in medical technology. The global market for convertible top drives continues to post no noteworthy growth. It is therefore all the more important to acquire the remaining production orders with newly developed power units. In 2015, the innovative Type 6 power unit was one of the products that aided HOERBIGER in expanding market share in market segments where hydraulic roof drives continue to be indispensable. While simple two-cylinder systems have been largely displaced by electric units, there are almost no reliable alternatives to hydraulics for the complex drives needed for heavy, multi-piece steel roofs. 110 XETTO® – I can do it alone … 111 “I can do it alone...” is HOERBIGER's advertising slogan for XETTO®. The intelligent design of this loading and unloading aid is clear in the way it can be operated by just one person, saving craftspeople considerable personnel costs. The device pays for itself within just a few months.

Sales in the medical technology area of the Hydraulic Systems Division primarily come from Innovation the compact hydraulic lifting columns for operating tables developed at the Barbing location and the piezoelectric valves of the HOERBIGER Tecno portfolio, which are produced at the ­Altenstadt site. Sales activities in 2015 centered around the expedited market entry in Asia. HOERBIGER XETTO® developed the Column Trend Line (CTL) lifting column specifically for this market.

The innovative combination of all aids necessary To further optimize benefits for users in various Loading Comfort Business Segment for loading and unloading a small work vehicle in trades and businesses, HOERBIGER offers The XETTO® loading and transport system from the Loading Comfort Business Segment was a single piece of equipment is unrivaled – extensive accessories for the XETTO® system consistently developed until it was ready to be brought to market. making XETTO® a welcome helper for individual in the form of both standard and optional The unique selling propositions of XETTO® allow HOERBIGER to occupy an attractive craftspeople and larger businesses alike. attachments.

market niche in the loading and transport aid segment for craftspeople and small businesses. Hydraulics The compact system allows one person, using a single piece of equipment, to load and unload Thanks to its compact new power unit, XETTO® a work vehicle with up to 250 kilograms of cargo. The system needs no special installations, fits under the cargo in practically any station and does away with forklifts and pallet trucks. wagon. The functional samples that were tested extensively in the market in 2015 confirmed the economic and ergonomic benefits to customers of XETTO’s® unique selling propositions. XETTO® picks up the cargo like a transport cart. It then turns into a pallet truck, lifts its freight into the vehicle, "climbs" in behind it, and stows itself beneath the cargo. The entire procedure is effortless for the driver, thanks to powerful electrohydraulics and cleverly designed kinematics. Unloading is also ingeniously simple: XETTO® extends out of the vehicle, creates a solid footing for itself, turns into a pallet truck again, and allows drivers to transport their cargo safely and easily without straining their backs. HOERBIGER launched XETTO® in 2016 as a new brand for tradesmen, businesses, and commerce. The rollout in additional European countries is scheduled for 2017. 112 Premiere 2016: HOERBIGER ePRAX® control 113 “WEIn 2015, the development USED of the HOERBIGER TO ePrAX® controlACT system closed the gap between basic and high-end applications for hydraulic drive systems for press brakes. The goal of the Hydraulic Systems Division is for the HOERBIGER ePrAX® control system to cover an even INTUITIVELYbroader range of mechanical engineering applications – in the future. The system will be presented to the European market as part of the 2016 EuroBLECH show.

Machinery Business Segment

NOW,Innovation WE WORK Components and systems for the sheet metal working industry are the core competence of the Machinery Business Segment, especially compact hydraulic power packs for press brakes from the HOERBIGER ePrAX® product portfolio and the HOERBIGER Laser Gas Regulator (LGR). HOERBIGER continues to hold a strong competitive position, both in Europe and in Asia. TOWARD A Unveiled to the expert community in 2014, the hydraulic ePrAX® basic control unit for HOERBIGER ePrAX® control high-tonnage conventional press brakes was received well in the market.

COMMONcontrol GOAL.”control The HOERBIGER ePrAX® system is geared The HOERBIGER ePrAX® system allows primarily to OEM customers seeking to achieve a energy savings of as much as 50 percent to flexible stroke with an open hybrid system that be achieved, with up to 10 percent greater combines energy efficiency and flexibility in the performance at the same time. design of press brakes. Hydraulics

Target customers are manufacturers of upper mid-range press brakes, initially in China. 112 PremiereEvery week, 2016: Josef HOERBIGER Ritzl has ePRAX® one control set appointment in his calendar. 113 InIt 2015is for, the the development “Fighting of Triangle” the HOERBIGER conference ePrAX® control call withsystem his closed colleagues the gap between from basicApplication and high-end Development, applications for Sales, hydraulic and drive Marketing. systems for press brakes. The goal of the Hydraulic Systems Division is for the HOERBIGER ePrAX® control system to cover an even broader range of mechanical engineering applications in the future. The system will be “By tradition, we are a development-driven company. We’re very innovative and technologi- presented to the European market as part of the 2016 EuroBLECH show. cally creative at a high level. Our conference call brings product specialists and market experts together. Our goal is to align our portfolio even more with the requirements of the customers and market.” Machinery Business Segment Josef Ritzl refers to himself as a HOERBIGER “institution.” 37 years ago, Components and systems for the sheet metal working industry are the core competence of Innovation he started his apprenticeship in compression technology, and he has never the Machinery Business Segment, especially compact hydraulic power packs for press brakes stopped. Instead, he continually developed, covering many career stages. from the HOERBIGER ePrAX® product portfolio and the HOERBIGER Laser Gas Regulator (LGR). Four years ago, Product Management was implemented, creating a new HOERBIGER continues to hold a strong competitive position, both in Europe and in Asia. organizational structure to make the company more market-oriented. Unveiled to the expert community in 2014, the hydraulic ePrAX® basic control unit for HOERBIGER ePrAX® control high-tonnage conventional press brakes was received well in the market. “For me, the task of being product manager is extremely exciting,” Josef Ritzl says. “I enjoy it because I have a lot of contact with various people and target groups, and I can The HOERBIGER ePrAX® control system is geared The HOERBIGER ePrAX® control system allows make a difference.” primarily to OEM customers seeking to achieve a energy savings of as much as 50 percent to flexible stroke with an open hybrid system that be achieved, with up to 10 percent greater In 2016, for example, the HOERBIGER ePrAX® control system, a hydraulic control combines energy efficiency and flexibility in the performance at the same time. unit for press brakes, was launched. With a development period of less design of press brakes. than one year, HOERBIGER closed the technological gap between standard Hydraulics drive systems and the HOERBIGER ePrAX® press actuator as a high-end Target customers are manufacturers of upper solution, ­initially for customers in the Chinese market. “This was only mid-range press brakes, initially in China. Josef Ritzl possible with collaboration and efficient product and project management,” Josef Ritzl comments. And this is precisely why the weekly conference call is important. The product management processes have since also been implemented.

“We used to act intuitively. Now, we work toward a common goal. All the information that is necessary for our projects is available within the team at any time, allowing us to use our know-how and dedication efficiently.” 112 Premiere 2016: HOERBIGER ePRAX® control 113 In 2015, the development of the HOERBIGER ePrAX® control system closed the gap between basic and high-end applications for hydraulic drive systems for press brakes. The goal of the Hydraulic Systems Division is for the HOERBIGER ePrAX® control system to cover an even broader range of mechanical engineering applications in the future. The system will be presented to the European market as part of the 2016 EuroBLECH show.

Machinery Business Segment

Components and systems for the sheet metal working industry are the core competence of Innovation the Machinery Business Segment, especially compact hydraulic power packs for press brakes from the HOERBIGER ePrAX® product portfolio and the HOERBIGER Laser Gas Regulator (LGR). HOERBIGER continues to hold a strong competitive position, both in Europe and in Asia. Unveiled to the expert community in 2014, the hydraulic ePrAX® basic control unit for HOERBIGER ePrAX® control high-tonnage conventional press brakes was received well in the market.

The HOERBIGER ePrAX® control system is geared The HOERBIGER ePrAX® control system allows primarily to OEM customers seeking to achieve a energy savings of as much as 50 percent to flexible stroke with an open hybrid system that be achieved, with up to 10 percent greater combines energy efficiency and flexibility in the performance at the same time. design of press brakes. Hydraulics

Target customers are manufacturers of upper mid-range press brakes, initially in China. 114 STANDARDS SINCE 1895 115

STABILITY Hanns Hörbiger, inventor and pioneer In 1895, the steel plate valve invented by Hanns Hörbiger was patented. The valve plate opens when the gas pressure is high enough, and closes as long AND as the spring pressure is higher than the gas pressure. The HOERBIGER steel plate valve enormously improves the performance of compressors used in steel production, making production much more reliable and efficient than anyone would have considered possible at that time. CONTINUITY The HOERBIGER steel plate valve, however, not only enabled the ad- vancement of blast furnace technology, but also paved the way for the invention of modern high-pressure chemistry. This made it one of the key technolo­gies for the industrial development at the beginning of the 20th century. In 1900, Hanns Hörbiger, together with the engineer Friedrich Wilhelm Hanns Hörbiger Rogler, founded an engineering office in Budapest. This office was relocated to Vienna in 1903. In the years thereafter, Hanns Hörbiger devoted himself to continually enhancing the steel plate valve he had invented. His office issued licenses for use of the technology to business partners domestically and abroad. In 1925, the engineering office became HOERBIGER & Co. trading company, headquartered in Vienna.

Alfred and Martina Hörbiger

In 1931, Alfred Hörbiger, the second eldest son of the company’s founder, started the in-house production of valves in Vienna-Simmering. Between

1925 and 1945, a total of 171 patents were granted for HOERBIGER & Co. for Standards since1895 inventions and developments in the field of compressor valves and controls. After the destruction of the Vienna production plant during the last year of the Second World War, and the sudden passing of Alfred Hörbiger, his wife Alfred Hörbiger Martina Hörbiger, who also worked in the company, managed to rebuild the plant.

The company’s product range, which until then was primarily comprised of compressor valves and controllers, was expanded by new business segments based on core competencies in the fields of fluid technology and stamping technology. Initially, HOERBIGER was active in the pneumatics field. Just a short time later, it established new plants in Germany – in Schongau and neighboring Penzberg – for the production of steel disks for passenger car automatic transmission as well as for friction linings and friction disks for use in power-shift transmissions for construction machines and tractors. The Pneumatics Division was then supplemented with the hydraulics segment.

Martina Hörbiger Based on its compressor valve development and production expertise, in 1971 HOERBIGER 116 117 ­decided to systematically build a worldwide network of service entities for the maintenance and repair of reciprocating compressors. This put the company clearly ahead of the competition.

On the way to the Group

August 1989: Martina Hörbiger, owner of the group of companies, died at the age of 87. She bequeathed the challenge of not only continuing business operations consistent with her spirit, but also realigning the corporate structure – which in the years prior was centered ­predominantly around her – to the new management team, which she had appointed prior to her passing together with the Board of Trustees of the HOERBIGER Foundation.

Hanns Hörbiger in the engineering office

Reconstruction and globalization

Even before the Second World War, HOERBIGER sales branches were established in Germany, Italy, and Great Britain. In 1947 Martina Hörbiger resumed international business relations, first within Europe, then later in the Americas, Africa and Asia. Standards since1895

By the end of the 1950s, HOERBIGER had built its own distribution system in North America, followed in 1963 by the founding of HOERBIGER Corporation of America and the development of a production operation. In 1970, HOERBIGER Nippon K.K. in Japan was founded, and initial contacts were established with Taiwan, Korea, and China. Martina Hörbiger speaking with employees Hanns and Alfred Hörbiger

The group of companies was incrementally reorganized after1992 . Having previously been regionally organized in a variety of individual entities, business activities were assigned to the three newly formed Strategic Business Units: Compression Technology, Automation Technology, and Drive Technology. At the same time, the oil, gas and process industries, the mechanical and plant engineering industry, and the automotive industry were defined as strategic business segments. The Board of Trustees

The HOERBIGER Foundation, Zug, Switzerland, With this in mind, the following resolutions were 118 119 is the majority shareholder and controls the passed at the Annual Meeting of the HOERBIGER Group. It protects the entrepreneurial heritage Foundation on May 12, 2016: of the HOERBIGER Group, and ensures stability, self-reliance, and a future-oriented growth stra- Dr. Andreas Hünerwadel will become President tegy. The Board of Trustees of the HOERBIGER effective July 1, 2016, assuming management Foundation is composed of the family shareholder, of the Board of Trustees. Mrs. Christiana Hörbiger, active and/or former members of the Board of Directors, and indepen- After relinquishing his existing positions as CEO dent advisors associated with the Group through and Chairman of the Executive Board of long-standing cooperation. The Board of Trustees’ HOERBIGER Holding AG effective July 1, 2016, sole mandate is to support the Foundation’s Dr. Martin Komischke will join the Board of mission and safeguard the inter­ests of the Trustees and hold the position of Vice President HOERBIGER Group. Its members have no opera- of the HOERBIGER Foundation, along with tional management function within the Mrs. Christiana Hörbiger. HOERBIGER Group. Egbert Appel, a member of the Board of Trustees Effective June 30, 2016, Dr. Marcus Flubacher since July 2012, will also become a member and Dr. Gerd Unterburg will step down from of the Board of Trustees of the HOERBIGER both the Board of Trustees of the HOERBIGER Foundation effective July 1, 2016. Foundation and the Board of Directors of HOERBIGER Holding AG following many years Effective July 1, 2016, the Board of Trustees of dedicated service. of the HOERBIGER Foundation will have the following composition:

Dr. Andreas Hünerwadel Dr. Rudolf Huber President Member Born 1964 Born 1955 Standards since1895 Member of the Board of Trustees since 2009 Member of the Board of Trustees since 2008 HOERBIGER Board of Trustees (December 31, 2015). From left to right: 5, 3, 2, 1, 4 Dr. Martin Komischke Egbert Appel Vice President Member Born 1957 Born 1949 1 Dr. Marcus Flubacher 4 Dr. Rudolf Huber Member of the Board of Trustees since 2016 Member of the Board of Trustees since 2016 President Member Born 1944 Born 1955 Christiana Hörbiger Member of the Board of Trustees since 1995 Member of the Board of Trustees since 2008 Vice President Born 1939 2 Dr. Gerd Unterburg 5 Dr. Andreas Hünerwadel Member of the Board of Trustees since 1989 Vice President Member Born 1940 Born 1964 Member of the Board of Trustees since 2004 Member of the Board of Trustees since 2009

3 Christiana Hörbiger Vice President Born 1939 Member of the Board of Trustees since 1989 120 121

1995 saw further reorganization. In order to support continuing growth, the existing group of companies, which was run by HOERBIGER International in Vienna and their management, was restructured as a Group with a holding company and a central financial organization to be headquartered in Switzerland in the future. All the necessary conditions were created in Switzerland for developing the group of companies into a fully integrated corporate Group. HOERBIGER Holding AG in Rotkreuz, Switzerland, became the umbrella organization for the group of companies in 1997 and moved to Zug in 2000. The Group has since been managed by the Board of Directors of HOERBIGER Holding AG and the Executive Board.

Performance counts

In 2003, HOERBIGER held its first international survey of all employees regarding corporate culture. The results formed the basis of HOERBIGER’s corporate values: Pioneering Spirit, Courage, Closeness, and Fairness. The HOERBIGER umbrella brand displayed a new, modern logo in addition to the motto “Because performance counts”. In 2005 the corporate structure was systematically strengthened and expanded. With the expanded corporate functions Human Resources, Communications, Research & Development, Business Development and IT, the Group enhanced its profile, both internally and externally. Standards since1895 In 2006, the HOERBIGER Group revolutionized its previous public image as a mere group of companies. The three Strategic Business Units as well as the numerous foreign HOERBIGER entities, which previously operated in the market as independent companies, increasingly began to present their portfolios and services under the HOERBIGER umbrella brand in the following years. In 2007 the HOERBIGER Group formulated a new vision: “We set standards”. In 2009 and 2010 the worldwide management team developed a new mission to accommodate the growth of the Group: EXCELLENCE & Focus. In 2012 the Executive Board formulated a new cooperation and leadership guideline, titled “TOGETHER”. In 2013, the Executive Board inaugurated the global STREAM program. The objec­tive is to establish a worldwide standardized process logic for the HOERBIGER Group inside of three years, utilizing a highly tuned and efficiently structured IT architecture. In 2015, the EXCELLENCE & Focus initiative was followed by the next step: Mission Excellence & Growth. 122 TOGETHER 123 COOPERATION AND LEADERSHIP It is the people at HOERBIGER who assure the success of the company. This has always been the case, and applies even more so today. Their excellent achievements move the company ahead and safeguard its future.

Conformity is undesirable at HOERBIGER. As a trendsetter in technological niche markets, HOERBIGER is an enterprise in which new ideas need fertile ground. With their dedication and performance, our employees have allowed us to rise from a family business with European roots to an international technology group. Men and women, of varying ages, from very different origins and with equally multifaceted cultural backgrounds, work together at HOERBIGER every day. We value this diversity. It goes without saying for us. We believe that a modern guideline on cooperation and leadership in a cosmopolitan company such as HOERBIGER need not focus on commonplace conceptions of leadership and cooperation.

We attach much more importance to the guiding principles that shape our corporate culture. Together It is these principles that make HOERBIGER a successful company around the globe, and at the same time an extremely attractive employer.

People at HOERBIGER

We succeed because our people take responsibility for HOERBIGER’s success. We are successful because we believe in success. We are interested in creative, entrepreneurially thinking minds that develop new ideas and then implement them, clearly and with structure; people who are willing to pull their weight, who are “hands on!”, and who are a part of HOERBIGER in every situation. We keep our promises. Once we set goals, we are committed to achieving these goals – with all of our strength, determination, and abilities. We want to work with people who share the same view and fit the corporate mold. 124 125

Decision and change Communication

HOERBIGER grants great decision-making latitude not only to senior managers, but to each Transparent communication is important to us. Clear agreements form the basis for our and every employee. This is the reason why our senior managers and employees think like cooperation – internally and externally. We deal with each other openly and honestly. entrepreneurs. The freedom with which we are allowed to independently make decisions When we hold discussions among colleagues, we provide feedback to each other. When we motivates us. share criticism with each other, we do not consider this to be a manifestation of a lack of Independent action is therefore desired, regardless of hierarchical levels or functions. appreciation or recognition, but always a challenge to achieve even better results. When we are convinced that things require change, we do not hesitate; we act. Our senior managers provide comprehensive information to the best of their knowledge By being allowed to make independent decisions and changes within a broad scope, each and belief. They explain decisions so that all employees understand what is involved. employee bears individual responsibility toward the company. It is therefore important to us that decisions always have a lasting effect and are reliable. Leadership

Responsibility We count on a stable bond between senior managers and employees. This is based on respect, which in the truest sense of the word was developed over long periods of cooperation, good It is important to us to always keep the wellbeing of the entire Group in mind, aside from the communication, interest in different opinions, and competent interaction with differing responsibility for the specific task at hand. We value diversity of knowledge, creativity and cultures. opinions because we are convinced that we can deliver peak performance both as individuals Employees expect senior managers to be credible and to demonstrate leadership conduct and as a team. with honest intentions. They have the right to learn something from their managers and to Cooperation across the boundaries of Strategic Business Units, functions and regions participate in their managers’ responsibility by way of delegation for the Group as a whole. helps us to successfully cope with complex topics and tasks. We solve problems that stand in In order to develop strategically attractive business ideas and translate them into long- our way by everyone contributing unique skills and experience. When things do not quite term corporate success, our senior managers set targets with their employees which challenge go the way they should, we expect each employee to take the initiative, if necessary across their personal potential and encourage their individual development.

hierarchical levels. Mistakes, and at times even failures, do not throw us off our course. Together They inspire us to search for creative and innovative new approaches to solutions. HOERBIGER cannot relieve any employee of the responsibility for their own plans for life and a balanced harmony between work and family. However, we especially advocate that young people, during their training phases with us, develop a personality which empowers them to assume responsibility in every respect – for themselves, for their families, and for their duties on the job. 126 PRODUCTS AT A GLANCE 127 PERFORMANCE- DEFINING

Compression Technology Strategic Business Unit Drive Technology Strategic Business Unit Key components for reciprocating compressors Core Competencies Synchronizer systems for manual and dual-clutch transmissions Core Competencies Valves Fluid technology Pneumatic gearshift support systems Tribology Rings and packings Mechanics Design and testing of synchronizer systems Pneumatics Control and monitoring systems Thermo and gas dynamics Design and testing expertise Key components for air brake, refrigeration and air-conditioning compressors Metallurgy Metal forming technology Reed valves Polymer technology Machining technology Cylinder head units Piezo technology

Key components for rotary compressors Control engineering Hydraulic Systems Business Division Valves Electronics Compact Motion Technology for mechanical and plant engineering Core Competencies Controls Software Hydraulic comfort systems for passenger cars Hydraulics Key components for industrial gas engines Electronics Ignition systems Sensor systems Controls and instruments Software Engine management systems Control engineering Gas metering valves and actuators Safety products and services Solutions for dust, oil mist, and gas explosion protection Consulting, engineering and testing services for custom explosion protection concepts Solutions for electrostatic spark discharge prevention Relief and check valves Electrohydraulic safety valve actuators

Piezo-pneumatic pressure regulators and positioners Products at a Glance Services for compressors, turbines, and industrial gas engines Consulting and engineering Replacement parts and repair Upgrade and revamp System operation AN HOERBIGER Antriebstechnik GmbH KT HOERBIGER India Pvt. Ltd. KT HOERBIGER Nippon KK Mexico 128 LOCATIONS LP Werk 1 S 504/B Fifth Floor OZONE, S Service Center KT HOERBIGER de México, S.A. de C.V. Bernbeurener Straße 13 Sarabhai Compound, 129 – 1 Houma-Kanahori-Mae, S Calz. de la Naranja 166 86956 Schongau Vikram Sarabhai Marg, Shibayama, Sanbu-gun Fracc. Ind. Alce Blanco 39003 Vadodara 2861622 Chiba 53370 Naucalpan, Estado de México AN HOERBIGER Antriebstechnik GmbH CLOSE TO CUSTOMERS LP Werk 2 KT HOERBIGER India Private Ltd. KT HOERBIGER Nippon KK KT HOERBIGER de México, S.A. de C.V. Martina-Hörbiger-Straße 5 S 71/25 Stonedge Towers, 1st Avenue S Kyushu Office S Calle Fidencio Trejo #324 86956 Schongau 1st Floor, Ashoknagar 2-7-3-702 Maizuru, 88770 Col. El Maestro, Reynosa, Tamaulipas 600083 Chennai Chuo-Ku AN HOERBIGER Antriebstechnik 8100073 Fukuoka KT HOERBIGER de México, S.A. de C.V. WORLDWIDE IO Holding GmbH Versuch / Prüffeld entwicklung KT HOERBIGER India Private Ltd. S Plaza Mural Local 11-B Planta Alta Pürschlingstraße 4a S 153A Dimond Harbour Road, KT HOERBIGER Nippon KK Prolongacion 27 de Febrero No. 2991 86971 Peiting South 24, Parganas S Kansai Sales Office 2000 Tabasco, Villahermosa Tabasco HH = HOERBIGER Holding Bolivia China KT IEP Technologies France 700034 Kolkata Imon Kobe KT = Compression Technology KT HOERBIGER de Argentina S.A. KT HOERBIGER (Shanghai) Co., Ltd. S 26/36 Rue Alfred Nobel AN HOERBIGER SynchronTechnik GmbH & Co. KG Bldg. 95 Edo-Machi Chuo-ku Netherlands AN = Drive Technology S Filial Bolivia Av Beni 250 entre 4 y 5 anillo LP 39 He Fa Road, Caohejing Hi-Tech Park 93600 Aulnay Sous Bois LP Lembacher Straße 2 KT HOERBIGER India Private Ltd. 6500033 Kobe KT HOERBIGER Benelux B.V. HY = Hydraulic Systems 10260 Santa Cruz de la Sierra 200233 Shanghai 71720 Oberstenfeld S 102, Ansasls Majestic Tower, S Nijverheidsweg 25 Germany Plot No-17, Block G1, Community Centre, KT HOERBIGER Nippon KK – 6422 Heerlen IO = Internal Organization/Corporate Brasil KT HOERBIGER Valves (Changzhou) Co., Ltd. HH HOERBIGER Immobilien GmbH AN HOERBIGER Penzberg GmbH Vikas Puri S Narita Office LP = Large Production KT TURBOTECH Engenharia, LTDA. SP 1A–1C Building, GDH Industrial Park 16# IO Im Forchet 5 LP Seeshaupter Straße 33 110018 New Delhi Sumitomo Seimei Narita Nigeria SP = Small Production S Travessa São Judas Tadeu, Chuang Ye Road, Xinbei District 86956 Schongau 82377 Penzberg Bldg.,7F, 969 Hanazaki-cho KT HOERBIGER Nigeria S = Sales and Service 189, Recreio Ipitanga 213033 Changzhou, Jiangsu KT HOERBIGER India Private Ltd. 2860033 Narita S AOS Orwell, Plot 272, CEP42.700-000 Lauro de Freitas, Bahia HH HOERBIGER Deutschland Holding GmbH HY HOERBIGER Automotive IO Kompression Technology Trans Amadi, Industrial Layout HY HOERBIGER (Wuxi) Automation IO Im Forchet 5 LP Komfort systeme GmbH Technical Services 3rd Floor, KT HOERBIGER Nippon KK – PMB 029 Port Harcourt Algeria KT HOERBIGER TURBOTECH LP Technology Co., Ltd. 86956 Schongau Martina-Hörbiger-Straße 5 Saffire Park, Galleria No. 4 S Chubu Sales Branch KT HOERBIGER Service Algerie E.U.R.L. S Serviços de Engenharia Ltda. Science & Technology Business Incubator 86956 Schongau Old Pune-Mumbai Road, Cnfoturu2F, 2-11-7 kubota Norway S 13, Rue Mohamed Semani Rua Osasco, 1020 Rod. Anhanguera, Km 33 Anzhen Xidong Park, Xishan EDZ HH HOERBIGER Deutschland Holding GmbH Shivajinagar 5100821 yokkaichi KT HOERBIGER Skandinavia Holding AS 16035 Hydra Algiers CEP 07753-040 Sao Paulo, Cajamar 214105 Wuxi IO Learning Center Europe KT IEP Technologies GmbH 411005 Pune S Glynitveien 7, Ski Logistikkpark. Pürschlingstraße 4 S Kaiserswerther Straße 85c KT HOERBIGER Nippon KK – 1400 Ski Argentina Bulgaria AN HOERBIGER Drive Technology 86971 Peiting 40878 Ratingen KT Gala Precision Technology Pvt. Ltd. S Sapporo Sales Branch KT HOERBIGER de Argentina S.A. KT HOERBIGER Zandov s.r.o. – LP (Changzhou) Co. Ltd. LP Plot No. 295, Village Vadavali 6th Floor No. 37 Peru S Calle Goya 175, Complejo Eslovenia S representative office Building No. 7, GDH Industrial Park, KT HOERBIGER Kompressortechnik GmbH Great Britain Bhiwandi-Wada Highway At Post Met. Taluka Keiwa building 3 – 2, Kita2Jyou KT HOERBIGER de Argentina, S.A. Q8302BWK Neuquén zh.k. Hristo Smirnenski, bl. 27A, 16 Chuangye Rd., Xinbei District LP Im Forchet 5 KT HOERBIGER UK Ltd. Wada, Masurne Road Nishi2Choume, Chuo-ku S Sucursal Perú Calle Boulevard 162, vh. B, ap. 20 213000 Changzhou, Jiangsu 86956 Schongau S Edderthorpe Street, P.O. Box 237 421312 Thane 600002 Sapporo Oficina 301, Santiago de Surco, Lima KT HOERBIGER de Argentina S.A. Sofia Bradford BD3 9RB 15000 Lima, Perú S Reconquista 2458 – El Talar Colombia KT HOERBIGER Automatisierungs­technik KT HOERBIGER India Serial Technology Pvt. Ltd. Kazakhstan B1618BDX Buenos Aires Canada KT HOERBIGER de Colombia LTDA. IO Holding GmbH KT IEP Technologies Ltd. IO Ramshree Apartment 1206 / 30A, 3rd floor, KT HOERBIGER Service Kazakhstan LLP KT HOERBIGER de Argentina, S.A. KT HOERBIGER Canada Ltd. S Carrera 85D # 46A 65 Bodega 19 Complejo TechGate Stuttgart S Unit 1, Neptune Business Centre, Opp Sambhaji Park Smt Ramabai Shrinivas S 48, Azattyk, office 502 S Sucursal Perú Manzana A Zona Australia S Bay 7, 2616 – 16th Street N.E. Logistico San Cayetano Bogotá Meitnerstraße 8 Tewkesbury Road Kawale Path, Jangali Maharaj Road Atyrau Industrial Talara Alta-Pariñas KT HOERBIGER Australia Pty Ltd. T2E7J8 Calgary, Alberta 70563 Stuttgart GL51 9FB Cheltenham 411004 Pune 20811 Talara, Piura, Perú S 17 – 19 David Street Czech Republic Korea, South VIC3175 Dandenong, Victoria KT HOERBIGER Canada Ltd. KT HOERBIGER Žandov s.r.o. KT HOERBIGER Service GmbH KT Newson Gale Ltd. Indonesia KT HOERBIGER Korea Ltd. Poland S 400 Matheson Boulevard East, Unit 32 SP Nádrazni 10 S Hanns-Hörbiger-Straße 10 SP Omega House, Private Road 8 KT PT. HOERBIGER Kompresotama Indonesia Jl. S Songpa-Gu Karak-dong 73-3 KT HOERBIGER Polska Sp. z o.o. KT HOERBIGER Australia Pty Ltd. L4Z1N8 Mississauga, Ontario 47107 Žandov 67133 Maxdorf NG4 2JX Colwick, Nottingham S Jababeka II J Blok CC No. 28 Kawasan Industri KR Tower Fl 8 S ul. Stawki 2 S Unit 4 – 5, 17 Alexandra Place Jababeka Pasir Gombong, 138 Seoul 00193 Warszawa QLD4172 Murarrie, Queensland KT HOERBIGER Canada Ltd. KT HOERBIGER Žandov s.r.o. – KT HOERBIGER Service GmbH Hungary Cikarang Utara S 9304 – 111th Street S Service Sokolovská 2408 / 222 S An der Reitbahn 1 KT HOERBIGER Service Hungaria 17834 Bekasi, West Jawa KT HOERBIGER Korea Ltd. HY HOERBIGER Automotive Sp. z o.o. Austria V1J7J5 Fort St. John, British Columbia 190 00 Praha 9 21218 Seevetal S Kft. Bagoly u. 7. S 355-11 yeocheon-Dong 402 LP ul. Modłowa 10 KT HOERBIGER Ventilwerke GmbH & Co KG 2120 Dunakeszi Iran Nam-Gu, Ulsan 59700 Boleslawiec LP Braunhubergasse 23 KT HOERBIGER Canada Ltd. Ecuador HY HOERBIGER Automatisierungstechnik KT HOERBIGER Pars 1110 Vienna S 10841– 78th Avenue KT HOERBIGER del Ecuador, S.A. IO Holding GmbH India S No 25, 23rd Fathh, Fathh Highway Kuwait Romania T8W2L2 Grande Prairie, Alberta S Calle de Los Arupos E1-203 Südliche Römerstraße 15 KT HOERBIGER India Private Ltd. 1387644781 Teheran KT HOERBIGER Service Middle East FZE Kuwait KT S.C. HOERBIGER SERVICE KT HOERBIGER Ventilwerke Beteiligungs GmbH Uniparque Bodega #4 86972 Altenstadt IO 3rd Floor, Saffire Park, Galleria No. 4 S Office S ROMANIA S.R.L. IO Braunhubergasse 23 KT HOERBIGER Canada Ltd. 170150 Quito Old Pune-Mumbai Road, Shivajinagar KT HOERBIGER Kish (KFZ) PO Box 26212 Str. Budvar Nr. 31/A 1110 Vienna S 441 South Avenue HY HOERBIGER Automatisierungstechnik GmbH 411005 Pune S Unit 3 Office Floor, Paniz Safat 13123 Kuwait 535600 Odorheiul Secuiesc T7X3A7 Spruce Grove, Alberta Egypt LP Südliche Römerstraße 15 International Bazar KT HOERBIGER Wien Immo GmbH KT HOERBIGER Service Egypt, LLC 86972 Altenstadt KT HOERBIGER India Private Ltd. Kish Island Libya Russian Federation IO Braunhubergasse 23 KT HOERBIGER Canada Ltd. S 20 El Sad El Aly St SP (Domestic Division) KT HOERBIGER Services Libya KT HOERBIGER LTD. 1110 Vienna S 53119 Highway 47 Maadi, Cairo HY HOERBIGER Micro Fluid GmbH Gat 301/1, 312, 313, Village Kondhapuri, Italy S Motamar Al Karama Ghote Al Chaal, S Nastavnichesky Lane 17 T7E3E9 Edson,Alberta LP Borsigstraße 11 Tal: Shirur KT HOERBIGER Italiana S.p.A. Near Al Raai Mosque building 1, entrance 24 HH HOERBIGER Deutschland Holding GmbH France 93092 Barbing 411006 Pune S Via dell’Elettronica, 8 PO Box 12435 Tripoli 105120 Moscow IO Zweigniederlassung Wien AN HOERBIGER FineStamping Inc. KT HOERBIGER France SAS 37139 Verona Guglgasse 15 – 17, Bauteil 3a, LP 555 Parkside Drive S 140 Rue de 12ème Régiment de Zouaves Z.I. de HH HOERBIGER Elektronik GmbH KT HOERBIGER India Serial Technology Pvt. Ltd. Lithuania Saudi Arabia 6. Stock N2L5E7 Waterloo, Ontario Courtine Mourre Frais IO Justinus-Kerner-Straße 7 SP Gat 301/1, 312, 313, Japan KT UAB HOERBIGER VIENyBE KT HOERBIGER Service Middle East FZE 1110 Vienna 84091 Avignon Cedex 72119 Ammerbuch Village Kondhapuri, Tal: Shirur KT HOERBIGER Nippon KK S Kaunostr. 120. S Industrial Machinery Establishment Chile 412209 Pune IO 87 – 4 Honjo 20115 Ukmerge P.O. Box 36079 KT HOERBIGER Kompressortechnik KT HOERBIGER DE CHILE S.A. KT HOERBIGER France SAS AN HOERBIGER Antriebstechnik 2860114 Narita 31961 Jubail Industrial City IO Holding GmbH S El Roble 748 S Parc d’Activité de la Route des Lacs IO Holding GmbH Malaysia TechGate Tower, Donau-City-Straße 1 Recoleta, Santiago de Chile B.P. 220 Bernbeurener Straße 13 KT HOERBIGER KT Malaysia Sdn Bhd. 1220 Vienna 27102 Val de Reuil 86956 Schongau S PT 15675 & 15676 Kawasan Perindustrian Jakar III 24000 Kemaman Terengganu KT Singapore KT Thailand KT HOERBIGER Service Inc. IO HOERBIGER KT Asia Holding Pte. Ltd. S HOERBIGER (Thailand) Co., LTD. S 12700 West Highway 80 East 7 Temasek Boulevard #21- 05 304 Sirithhorn Road, 79765 Odessa, Texas Suntec Tower One, Singapore 038987 Kwaeng Bangplad 629097 Singapore 10700 Khet Bangphad, Bangkok KT HOERBIGER Service Inc. S 2828 South Utah Ave KT HOERBIGER KT Asia Services Pte.Ltd. KT HOERBIGER (Thailand) Co., Ltd. 73108 Oklahoma City, Oklahoma S 77 Joo Koon Circle S 136/72 Moo 9 Laemthong Road Tambol 629097 Singapore Tungsukla, Amphar Sriracha KT HOERBIGER Service, Inc. 20230 Chonburi S 17250 New Lenox Road, Suite 2 Slovakia 60433 Joliet, Illinois KT HOERBIGER ŽANDOV s.r.o. Turkey S organizačná zložka Cementárská 15 KT HOERBIGER Kompresyon Teknolojileri KT HOERBIGER Service Inc. 90031 Stupava S San. ve Tic. Ltd. Şti. S 25057 Anza Drive Dudullu O.S.B. DES 114. Sk. C-8 91355 Santa Clarita, California South Africa Blok No: 7– 9. KT HOERBIGER S.A. (Pty.) Ltd. 34776 Ümraniye, Istanbul KT HOERBIGER Service Inc. Publisher Proof-reading of German edition S 9, Fuchs Street S 12204 Fairmont Parkway HOERBIGER Holding AG Dörte Fuchs/Jutta Orth, Freiburg, Germany 1450 Alrode KT IEP Technologies Turkey 77572 La Porte, Texas S Sehit Fethi Bey Cad. No. 41, Baarerstrasse 18 Spain Kat 3, Daire 302 HY HOERBIGER Automotive Comfort 6304 Zug, Switzerland Translations of English edition KT HOERBIGER Iberica S.A. 35 210 Konak, Izmir IO Systems, LLC Phone: +41 (0) 41 560 10 00 Kerstin Roland S Calle Río Ter 2 Polígono Industrial 284 Enterprise Drive Telefax: +41 (0) 41 560 10 11 Maintal Translations, Inc., Virginia Beach, VA, USA El Nogal Ukraine 36830 Auburn, Alabama E-Mail: [email protected] 28110 Algete KT HOERBIGER Service Ukraine, LLC www.hoerbiger.com Proof-reading of English edition S Eurasia Business Centre, KT HOERBIGER America Holding, Inc. – KT HOERBIGER Iberica S.A. 75 Zhylyanska St., 11th Floor IO Corporate IT Charles Butcher IO Calle Río Ter 2 Polígono Industrial 1032 Kiev 1191 East Newport Center Drive Responsible thiswritingbusiness, Stanhoe, Norfolk, United Kingdom El Nogal 33442 Deerfield Beach, Florida Board of Directors 28110 Algete United Arab Emirates Dr. Marcus Flubacher (President) Print KT HOERBIGER Service Middle East FZE KT IEP Technologies, LLC Executive Board Druck-Ring GmbH & Co. KG, Munich, Germany Sweden S Jebel Ali Free Zone, P.O. Box 17153 SP 417-1 South Street Dr. Martin Komischke (CEO and Chairman) KT HOERBIGER Control Systems AB Road 626 01752 Marlborough, Massachusetts IO Förradsgatan 5 Dubai Time of printing 66222 Amål KT Newson Gale Inc. Project management June 1, 2016 United States S 460 Faraday Avenue, Bldg C Corporate Communications KT HOERBIGER Service Nordic AB KT HOERBIGER Service Latin America, Inc. 8527 Jackson, New Jersey Ludwig Schönefeld S Garvansväg 9 IO 1358 West Newport Center Drive 77136 Ludvika 33442 Deerfield Beach, Florida KT HOERBIGER America Holding, Inc. Texts S 1358 West Newport Center Drive Switzerland KT HOERBIGER Corporation of America Inc. 33442 Deerfield Beach, Florida Group and Strategic Business Units HH HOERBIGER Holding AG LP 3350 Gateway Drive Ludwig Schönefeld IO Baarerstrasse 18 330694864 Pompano Beach, Florida KT HOERBIGER Engine Solutions Altronic, LLC People Stories 6304 Zug LP 2350 Crist Road Sophie Blasberg, Simon Schmid KT HOERBIGER Engine Solutions Altronic, LLC 75040 Garland, Texas Highlights HH INTERHOERBIGER Finanz AG LP 712 Trumbull Avenue Simon Schmid IO Baarerstrasse 18 44420 Girard, Ohio Venezuela 6304 Zug KT HOERBIGER de Venezuela, S.A. KT HOERBIGER Corporation of America Inc. S Avenida Principal de la Urbanización Visual concept and design KT HOERBIGER Service GmbH LP 1212 Milby Street Los Cortijos de Lourdes PH4-A, Jäger & Jäger, Überlingen, Deutschland S Gewerbestrasse 115 77023 Houston, Texas Centro Empresarial Bravosol 5314 Kleindöttingen 1010A Caracas Photography KT HOERBIGER Service Inc. Portraits KT IEP Technologies GmbH S 7042 South Revere Parkway, KT HOERBIGER de Venezuela, S.A. S Roetzmattweg 105 Suite 400 S Avenida Intercomunal entre Tigre-Tigrito Manfred Klimek 4603 Olten 80112 Centennial, Colorado 6050 El Tigre, Estado Anzoátegui Product photos Nikolaus Schäffler, Marcel Billaudet Taiwan KT HOERBIGER Service Inc. Highlights KT HOERBIGER Taiwan Ltd. S 6640 Exchequer Dr. Hans-Helmut Herold, Marcel Billaudet, S 4F, 58, Lane 316, Rueiguang Road, 70809 Baton Rouge, Louisiana HOERBIGER Archive Neihu District, Taipei 11492 111 Taipei KT HOERBIGER Service Inc. Board of Trustees S 923 Foster Road Ludwig Rusch KT HOERBIGER Taiwan Ltd. 82601 Casper, Wyoming S 12-2 Zhong Her Road, Hai Feng Village KT HOERBIGER Service Inc. 63859 Mai Liao District S 8448 North Sam Houston Parkway West yun Lin County 77064 Houston, Texas

KT HOERBIGER Service Inc. S 220 N Country Estates Road 67901 Liberal, Kansas HOERBIGER YEARBOOK 2015/2016

AG15IM016AE201604