HOERBIGER Yearbook 2013/14

People table of contents Foreword of the Board of Directors 2

we embody diversity. CEO Statement 20

Highlights 2013 28

People of HOERBIGER 38

Group Profile 56

Strategic Business Unit Compression Technology 64

Strategic Business Unit Drive Technology 94 credits Publisher initiatives Strategic Business Unit Automation Technology 106 HOERBIGER Holding AG Baarerstrasse 18 6304 Zug, Switzerland we deliver performance. Business Division Automotive Comfort Systems 116 Telephone: +41 (0) 41 560 10 00 Fax: +41 (0) 41 560 10 11 HOERBIGER—Group with Family Tradition 122 Email: [email protected] www.hoerbiger.com

Responsible Together— Board of Directors Guideline on Cooperation and Leadership 125 Dr. Marcus Flubacher (President) HOERBIGER Products at a Glance 127 Executive Board Dr. Martin Komischke (CEO and Chairman) Company Locations 128

Concept and Project Lead Corporate Communications Ludwig Schönefeld standards

Text Ludwig Schönefeld Highlights: Simon Schmid we love innovations. People of HOERBIGER: Jens Geisel

Consulting, Project Management and Production Mensalia Unternehmensberatungs GmbH, Vienna, Austria

Pictures People: Ludwig Rusch, Manfred Klimek Board of Directors: Markus Meienberg Concept pages: Ludwig Rusch, Thomas C. Robison Page 20-23 kindly provided by MND Gas Storage a.s. Facility Uhˇrice and the Vienna Airport Highlights: Marcel Billaudet, Hans-Helmut Herold, HOERBIGER Archive Products: Nikolaus Schäffler, Marcel Billaudet 2013/b ook 14 Translations Kerstin Roland Maintal Translations, Inc., Virginia Beach, VA, USA Year ER Layout Graphische Gestaltung im Erdgeschoss GmbH, I G Vienna, Austria B Cover image: Dr. Peter Dolovai / Ipeleng Mabusela / Klaus Stachel / Gotthard Gawens / Dana Larisa Lazar / Printed by

AV+Astoria, Vienna, Austria AG16IM011AE201404 H OER Dr. Josef Leitner / Dietmar Artner / Krzysztof Spiehs / Nina Hirsch / Carolina Aponte Company Locations CODE OF CONDUCT OUR COMMITMENT to HOERBIGER CORPORATE STRUCTURE

INTEGRITY aND Board of directors Dr. Marcus Flubacher, President / Dr. Gerd Unterburg, Vice President Dr. Rudolf Huber / Dr. Manfred Reichl / Egbert Appel HH HOERBIGER Deutschland Holding GmbH AN HOERBIGER Penzberg GmbH KT Hoerbiger India Private Ltd. Kazakhstan New Zealand South Africa Ukraine KT HOERBIGER Service Inc. IO Learning Center Europe LP Seeshaupter Strasse 33 IO Kompression Technology Technical Services KT Hoerbiger Service Kazakhstan LLP KT HOERBIGER New Zealand Ltd. KT HOERBIGER S.A. (Pty.) Ltd. KT HOERBIGER Service Ukraine, LLC S 12700 West Highway 80 East COMPLIANCE Pürschlingstrasse 4 82377 Penzberg 3rd Floor, Saffire Park, Galleria No. 4 S 48, Azattyk, office 502 S C1-37 Greenmount Drive East Tamaki S 9, Fuchs Street, Alrode, 1450 S Eurasia Business Center, Odessa, Texas 79765 86971 Peiting Old Pune-Mumbai Road, Shivajinagar Atyrau Auckland NZ MEA Po Box 17844, East 75 Zhylyanska St., 11th Floor AK HOERBIGER Automotive Pune 411005 Randhart 1457 01032 Kyiv KT HOERBIGER Service Inc. KT HOERBIGER Kompressortechnik GmbH SP Komfortsysteme GmbH Korea (South) Norway S 2828 South Utah Ave We run our businesses based on our We manage our company by striving for We treat our suppliers fairly. We expect our Executive Board LP Im Forchet 5 S Martina-Hörbiger-Strasse 5 KT Gala Precision Technology Pvt. Ltd. KT HOERBIGER Korea Ltd. KT HOERBIGER Skandinavia Holding AS Spain United Arab Emirates Oklahoma City, Oklahoma 73108 Corporate values: Pioneering Spirit, highest standards of business excellence: suppliers to strive towards the same high 86956 Schongau 86956 Schongau LP Plot No. 295, Village Vadavali S Songpa-Gu Karak-dong 73-3 S Glynitveien 7, Ski Logistikkpark KT HOERBIGER Iberica Holding S.L. KT HOERBIGER Service Middle East FZE Dr. Martin Komischke, Chairman Bhiwandi-Wada Highway KR Tower Fl 8 West 1400 Ski IO Calle Río Ter 2 S Jebel Ali Free Zone, P.O. Box 17153, KT HOERBIGER Service, Inc. Courage, Fairness and Closeness. because performance counts. standards for business conduct and prod- Charles Friess / Norbert Gauß / Johann Hipfl / Dr. Siegmar Schlagau / Gerhard Wagner KT HOERBIGER Service GmbH Hungary At Post Met. Taluka Wada, Masurne Road Seoul Korea 138-160 West Polígono Industrial El Nogal Road 626 S 17250 New Lenox Road, Suite 2 These values are the foundation of uct quality that we have set for ourselves. S Hanns-Hörbiger-Strasse 10 KT HOERBIGER Service Hungaria Kft. Thane 421312 Peru 28110 Algete Dubai Joliet, IL 60433 West 67133 Maxdorf S Bagoly u. 7. KT HOERBIGER Korea Ltd. KT HOERBIGER Peru our Corporate Culture and HOERBIGER’s We conduct our business with respect for East 2120 Dunakeszi Indonesia S 355-11 Yeocheon-Dong S Av La Encantada Nº 1010 Ofic. 810 KT HOERBIGER Iberica S.A. United Kingdom Great Britain KT HOERBIGER Service, Inc. success. human dignity, in recognition of human We protect proprietary business informa- KT HOERBIGER Service GmbH KT PT. HOERBIGER Kompresotama Indonesia Nam-Gu Santiago de Surco S Calle Río Ter 2 and Northern Ireland S 923 Foster Road rights, and in accordance with applicable tion, private data, and intellectual prop- S Uetzinger Strasse 4 India S Jl. Jababeka II J Blok CC No. 28 Ulsan Lima West Polígono Industrial El Nogal KT HOERBIGER UK Ltd. Casper, WY 82601 West 29664 Walsrode KT HOERBIGER India Private Ltd. Kawasan Industri Jababeka 28110 Algete S Edderthorpe Street, P.O. Box 237 Every day we are faced with decisions about laws. erty rights. Proprietary company informa- IO 3rd Floor, Saffire Park, Galleria No. 4 Pasir Gombong, Cikarang Utara Kuwait KT HOERBIGER Peru West Bradford BD3 9RB KT HOERBIGER Service, Inc. what is right or wrong. Even in complex tion and data may be released to third AT HOERBIGER Automatisierungstechnik Old Pune-Mumbai Road, Shivajinagar Bekasi, West Jawa 17834 KT HOERBIGER Service Middle East FZE S Manzana A Sweden S 504 Connecticut Street, Unit B&C IO Holding GmbH Pune 411005 S Kuwait Office Zona Industrial KT HOERBIGER Control Systems AB USA Rock Springs, WY 82901 situations our pace is fast. For this the We are committed to economically and parties only with prior authorization. Südliche Römerstrasse 15 Iran MEA PO Box 26212, Safat 13123, Kuwait Talara Alta-Pariñas IO Förradsgatan 5 KT HOERBIGER America Holding, Inc. 86972 Altenstadt KT HOERBIGER India Private Ltd. KT HOERBIGER Pars Talara, Piura S 66222 Amål IO 1358 West Newport Center Drive KT HOERBIGER Service Inc. Code of Conduct provides definite and environmentally sustainable business Strategic Business Unit Strategic Business Unit Strategic Business Unit Business Division Corporate Corporate SP (Domestic Division) S No 25, 23rd Fathh, Fathh Highway Libya Deerfield Beach, Florida 33442-7777 25057 Anza Drive Compression Technology Drive Technology Automation Technology Automotive Comfort Systems Finance / Controlling Human Resources S clear directions. practices. We keep accurate records, and guaran- AT HOERBIGER Automatisierungstechnik Gat 301/1, 312, 313, Village Kondhapuri, Tehran 1387644781 KT Poland HOERBIGER Service Nordic AB Johann Hipfl Thomas Englmann Norbert Gauß Dr. Martin Komischke Charles Friess Gerhard Wagner Hoerbiger Services Libya KT Santa Clarita, California 91355 tee complete reporting of financial and interim LP GmbH Tal: Shirur S Motamar Al Karama KT HOERBIGER Polska Sp. z o.o. S Garvansväg 9 KT HOERBIGER Service Latin America, Inc. The Code of Conduct affirms our commit- We provide safe working conditions. operating information to management, Südliche Römerstrasse 15 Pune 411006 KT HOERBIGER Kish (KFZ) MEA Ghote Al Chaal, Near Al Raai Mosque S ul. Rzymowskiego 30, nr lok. 210 771 36 Ludvika IO 1358 West Newport Center Drive KT HOERBIGER Service Inc. 86972 Altenstadt S Unit 3 Office Floor, Paniz International PO Box 12435, Tripoli East 02-697 Warszawa Deerfield Beach, Florida 33442-7777 S 12204 Fairmont Parkway ment to Business Excellence. It is a com- shareholders, and third parties. KT HOERBIGER India Serial Technology Pvt. MEA Bazar Switzerland La Porte, Texas 77572 mitment which we give to our customers, We continuously develop the abilities of as of 4/1/2014 AT HOERBIGER Automatisierungstechnik SP Ltd. Kish Island Lithuania AK HOERBIGER Automotive Sp. z o.o. HH HOERBIGER Holding AG KT HOERBIGER Corporation of America Inc. IO Holding GmbH Gat 301/1, 312, 313, Village Kondhapuri, KT UAB HOERBIGER VIENYBE LP ul. Modłowa 10 IO Baarerstrasse 18 LP 3350 Gateway Drive AK HOERBIGER Automotive Comfort Systems, and to each other: We will act with personal our employees, and evaluate performance We act with integrity and honesty at all TechGate Stuttgart, Meitnerstrasse 8 Tal: Shirur Italy S Kaunostr. 120. 59-700 Boleslawiec 6304 Zug Pompano Beach, Florida 33069-4864 LP LLC integrity and in compliance with legal and objectively. times. We will declare potential conflicts 70563 Stuttgart Pune 412209 KT HOERBIGER Italiana S.p.A. East 20115 Ukmerge S 284 Enterprise Drive ethical principles at all times. of interest. We will protect the company’s S Via dell’Elettronica, 8 Romania HH INTERHOERBIGER Finanz AG KT HOERBIGER Corporation of America Inc. Auburn, Alabama 36830 AT HOERBIGER Micro Fluid GmbH KT HOERBIGER India Serial Technology Pvt. West 37139 Verona (VR) Malaysia KT S.C. HOERBIGER SERVICE ROMANIA IO Baarerstrasse 18 SP 1212 Milby Street We show mutual respect as we collaborate assets, and will not use our position at SP Borsigstrasse 11 S Ltd. KT HOERBIGER KT Malaysia Sdn Bhd. S S.R.L. 6304 Zug Houston, Texas 77023 Venezuela With our Code of Conduct we also recog- across cultures. We recognize the freedom HOERBIGER for personal gain. 93092 Barbing Ramshree Apartment 1206/30A, 3rd floor, Japan S PT 15675 & 15676 East Str. Budvar Nr. 31/A KT HOERBIGER de Venezuela, S.A. Opp Sambhaji Park KT HOERBIGER Nippon KK Kawasan Perindustrian Jakar III 535600 Odorheiu Secuiesc KT HOERBIGER Service GmbH KT HOERBIGER Engine Solutions S Avenida Principal de la Urbanización nize our social responsibilities as a globally of association of our workforce. HH HOERBIGER Elektronik GmbH Smt Ramabai Shrinivas Kawale Path, IO 87-4 Honjo 24000 Kemaman Terengganu S Gewerbestrasse 115 LP Altronic, LLC Los cortijos de Lourdes active company. We respect and support We take pride in HOERBIGER. We protect IO Justinus-Kerner-Strasse 7 Jangali Maharaj Road 286-0114 Narita Russia West 5314 Kleindöttingen 712 Trumbull Avenue Centro Empresarial Bravasol, PH4-A 72119 Ammerbuch Pune 411004 Mexico KT HOERBIGER Ltd. Girard, Ohio 44420 Caracas the goals as of relevant international con- We conduct all our business with integrity the good reputation of our company as KT HOERBIGER Nippon KK KT HOERBIGER Servicios Técnicos S.A. de C.V. S 1. Arkhangelsky lane Taiwan ventions such as the United Nations Global and transparency. We oppose corruption. well as the image and the value of the AN HOERBIGER Antriebstechnik Holding KT HOERBIGER India Private Ltd. S Narita Office S Calz. de la Naranja 166 East Moscow, 101000 KT HOERBIGER Taiwan Ltd. KT HOERBIGER Engine Solutions KT HOERBIGER de Venezuela, S.A. Compact. HOERBIGER brand. IO GmbH IO Durvankur Bhavan Sumitomo Seimei Narita Bldg., 7F, Fracc. Ind. Alce Blanco S 4F, 58, Lane 316, Rueiguang Road, LP Altronic, LLC S Avenida Intercomunal entre Tigre-Tigrito Bernbeurener Strasse 13 Priyanka Nagari, Gat No. 2324, Wagholi 969 Hanazaki-cho Naucalpan, Estado de México, C.P 53370 Saudi Arabia Neihu District, Taipei 11492 2350 Crist Road El Tigre, Estado Anzoátegui We deliver superior products and services 86956 Schongau Pune 412207 286-0033 Narita KT HOERBIGER Service Middle East FZE 111 Taipei Garland, Texas 75040 All HOERBIGER employees must be famil- to our customers. We support free and fair WE LISTEN AND WE ACT KT HOERBIGER de México, S.A. de C.V. S Industrial Machinery Establishment AN HOERBIGER Antriebstechnik GmbH Werk 1 KT HOERBIGER India Private Ltd. KT HOERBIGER Nippon KK S Calle Fidencio Trejo #324 Esq. Ignacio MEA P.O. Box 36079 KT HOERBIGER Taiwan Ltd. KT HOERBIGER Service Inc. iar with the Code of Conduct and follow its competition, and we comply with relevant We accept the challenges of ethical con- LP Bernbeurener Strasse 13 S Plot No 315/1, GIDC Estate S Service Center Ramírez, Jubail Industrial City 31961 S 12-2 Zhong Her Road, Hai Feng Village IO 7042 Revere Parkway, Suite 400 letter and spirit; the Code applies world- competition laws. duct. In critical situations we will support 86956 Schongau Dist. Vadodara 129-1 Houma-Kanahori-Mae, Col. El Maestro, Reynosa, Tamaulipas Mai Liao District 63859 S Centennial, Colorado 80112 2013: Ranoli 391350 Shibayama, Sanbu-gun México C.P. 88770 Singapore Yun Lin County wide. We are convinced that our custom- each other to keep our commitments to AN HOERBIGER Antriebstechnik GmbH Werk 2 289-1622 Chiba KT HOERBIGER KT Asia Holding Pte. Ltd. KT HOERBIGER Service Inc. ers and other business partners will honor We take due care in the selection of move HOERBIGER forward. The best year in the company’s history LP Martina-Hörbiger-Strasse 5 KT HOERBIGER India Private Ltd. KT HOERBIGER de México, S.A. de C.V. IO 77 Joo Koon Circle Thailand S 6640 Exchequer Dr. that we conduct our business with personal our business partners. We comply with 86956 Schongau S 71/25 Stonedge Towers, 1st Avenue KT HOERBIGER Nippon KK S Plaza Mural Local 11-B Planta Alta 629097 Singapore KT HOERBIGER (Thailand) Co., LTD. Baton Rouge, LA. 70809 1st Floor, Ashoknagar S Kyushu Office Prolongacion 27 de Febrero No. 2991 S 304 Sirithhorn Road, Kwaeng Bangplad integrity and in compliance with legal and export controls and anti-money laundry AN HOERBIGER Antriebstechnik GmbH Chennai 600083 2-7-3-702 Maizuru, Chuo-Ku Tabasco 2000, Villahermosa Tabasco KT HOERBIGER KT Asia Services Pte. Ltd. Khet Bangphad, Bangkok 10700 KT HOERBIGER Service Inc. HOERBIGER Group 2013 Change in % 2012 2011 2010 2009 ethical standards. regulations. IO Versuch / Prüffeldentwicklung 810-0073 Fukuoka S 77 Joo Koon Circle S 12 McCullough Drive, Bay #4 Sales in million euros 1,052.3 – 0.4 1,056.9 1,048.1 948.2 771.9 Pürschlingstrasse 4a KT HOERBIGER India Private Ltd. Netherlands 629097 Singapore KT HOERBIGER (Thailand) Company Ltd. New Castle, Delaware 19720 Equity ratio in % 62.0% – 55.4% 50.0% 43.0% 43.5% 86971 Peiting S Flat No -3A, 3rd Floor, 153A Diamond KT HOERBIGER Nippon KK KT HOERBIGER Benelux B.V. S 136/72 Moo 9 Laemthong Road Harbour Road S Kansai Sales Office S Nijverheidsweg 25 Slovakia Tambol Tungsukla, Amphar Sriracha KT HOERBIGER SERVICE Inc. Employees as of 12/31 6,388 - 4.7 6,704 6,826 6,739 6,538 AN HOERBIGER SynchronTechnik GmbH & Kolkata -700034 Imon Kobe Bldg. 95 Edo-Machi Chuo-ku 6422 PD Heerlen KT HOERBIGER ŽANDOV s.r.o. Chonburi 20230 S 14425 Torrey Chase, Suite 340 LP Co. KG 650-0033 Kobe S organizacˇná zložka Houston, Texas 77014 Lembacher Strasse 2 KT HOERBIGER India Private Ltd. Nigeria East Cementárská 15 Turkey Sales by Strategic Business Unit 71720 Oberstenfeld S 102, Ansasls Tower, Plot No-17, Block -G1, KT HOERBIGER Nigeria 900 31 Stupava KT HOERBIGER Kompresyon Teknolojileri KT HOERBIGER Service Inc. in million euros 2013 Change in % 2012 2011 2010 2009 Community Centre, Vikas Puri S AOS Orwell, Plot 272, Trans Amadi, S San. ve Tic. Ltd. ¸S ti. S 220 N Country Estates Road Delhi 110018 Industrial Layout East Barbaros Mh. Ihlamur Sk. No:1 D:113 Liberal, Kansas 67901 Compression Technology 572.0 – 0.3 574.0 546.9 497.0 438.5 PMB 029, Port Harcourt 34746 Atas¸ehir, Istanbul Drive Technology 347.5 + 2.7 338.5 344.7 301.3 224.8 Automation Technology 59.4 + 4.6 56.8 58.8 54.3 41.4 Automotive Comfort Systems 66.4 - 16.5 79.5 90.2 95.6 67.2 We embody diversity. We deliver performance. We love innovations. 2 Foreword of the Board of Directors 3

Foreword of the Ladies and gentlemen, employees, business partners and customers!

Board of Directors The HOERBIGER Group can look back on a very successful 2013 fiscal year. Posting consolidated sales of 1.052 billion euros, we have again surpassed the one billion euro mark. As a result, we were able to maintain the high level of revenue of the previous year, despite adverse currency effects.

The increase of the operating result yet again, to an EBIT margin of 10.8 percent, is extremely pleasing and significantly strengthens the Group’s financial position. At 62 percent, our equity ratio is now clearly above the target of 45 percent set by the Board of Directors, which is also considered the minimum level for our long-term growth objectives.

The fact that, at 12 percent of net sales, the operating cash flow of the HOERBIGER Group is also the best ever is in particular a gage of the professional inventory management measures that were promoted very successfully by the Executive Board in all the HOERBIGER Strategic Business Units over the past few years.

I would like to express the deep appreciation and heartfelt gratitude of the Board of Directors to the Executive Board, all senior managers and all employees for this outstanding corporate performance in every respect.

Dr. Marcus Flubacher Dr. Gerd Unterburg Christiana Hörbiger President of the Board of Directors Vice President of the Board of Directors Member of the Board of Directors 2013—An annual financial statement that HOERBIGER can be proud of We noticed with great pleasure that the Strategic Business Unit Drive Technology developed particularly positively in the past fiscal year, following the extensive organizational changes over the last years. Reporting sales far above budget, the Business Unit significantly exceeded the expectations of the Board of Directors and Executive Board. It is quite obvious that the consistent focus on synchronizer systems expedited by the Executive Board in previous years has had a very positive impact on the Business Unit’s development.

In contrast, the business trend in the Strategic Business Unit Compression Technology was less in line with our expectations. Here, we had to settle for stagnating sales in the past fiscal year.

While the service business regained lost ground in North America, it came under pressure in Europe, Asia and Latin America in 2013. In the OEM markets, the young Engine Solutions Business Segment in particular was not able to realize the sales volume as planned. The annual financial statement Dr. Rudolf Huber Dr. Manfred Reichl Egbert Appel was also adversely impacted by foreign exchange rate effects given the relative strength of the euro. Member of the Board of Directors Member of the Board of Directors Member of the Board of Directors Still, it is very pleasing that the Strategic Business Unit Compression Technology managed to further improve the outstanding profitability it has maintained for years, despite stagnating sales. We consider this to be a very sound and positive starting point for the measures that the Executive Board has in mind for the coming years to further boost growth in this Business Unit. We are convinced that the Strategic Business Unit Compression Technology is in an excellent position to do so—as a result of a number of new and innovative products for our customers in the compressor and large engine market, as well as with new business models in Service. 4 Foreword of the Board of Directors 5

During the 50th anniversary celebration of HOERBIGER Corporation of America in April 2013, the I personally felt this enthusiasm, together with all the members of the Boards of Directors and Board of Directors had the opportunity to gain an insightful impression of Compression Technology’s Trustees, in a very special way during our visit to Latin America in February 2013. We had the performance capability as a trendsetter that offers new, innovative products and services. opportunity there to experience how the success of new HOERBIGER business activities such as the “Wellhead Compression Initiative,” but also other new initiatives in the service business of the The great challenge and task in the Strategic Business Unit Automation Technology remains to Strategic Business Unit Compression Technology directly affect the motivation and engagement of achieve even higher and more comprehensive market penetration with newly developed products. managers and employees. The results achieved in the past fiscal year are not yet satisfactory for us, albeit sales in 2013 rose slightly in the year-over-year comparison. Talent scout and Business Partner— Unfortunately we still have not managed to attain greater market penetration and the related addi- Human Resources Corporate Division tional revenue as planned with the newly developed electrohydraulic compact drives. The Board of Directors and Executive Board remain convinced that the Strategic Business Unit Automation In addition to inspiration and communication, we need structures that advance and promote our Technology, with its newly developed electrohydraulic compact actuator product range, will be able corporate culture in the best possible sense. to tap additional market potential even more so than in the past, beyond the market segments it is already successfully occupying today. With this in mind, the Board of Directors expressly supported The new Human Resources Corporate Division made excellent and important contributions in this the realignment of the organization proposed by the Executive Board at the end of 2013 into the regard in 2013. With our Performance Management System that was introduced worldwide at the Valve Automation and Compact Motion Technology Business Segments. end of 2013/beginning of 2014 and the likewise newly developed “Reward for Excellence” bonus system, we managed to firmly integrate the dimensions of our Mission Excellence—Product and In the Automotive Comfort Systems Business Division, the ongoing decline in demand for convertibles, Service Excellence, Management Excellence and Operational Excellence—into our management which HOERBIGER has no influence on, has impacted the sales trend to such an extent in 2013 and leadership culture. that it was not possible to achieve our sales targets. Still, we are pleased that the Business Division managed to considerably boost its profitability by taking timely corrective action. It has created good Another important incentive for the Group’s future-oriented mindset is our International Trainee conditions to generate additional revenue in the coming years with the measures that are planned Program, which has evolved into a stepping stone to international careers for young individuals by the Executive Board to expand the portfolio with innovative, smart microfluid components for from all over the world. At the same time, it is an expression of the cultural diversity of which we at automotive and non-automotive applications. HOERBIGER are proud.

The Board of Directors attaches great importance to ensuring that HOERBIGER makes attractive Employee engagement— career opportunities available to talented individuals at all corporate levels. The Career Path Guides Our most important concern developed in 2013 by Corporate Human Resources are an important building block in this process. They support the dialog between our managers and their employees about their next meaningful The HOERBIGER Group is pleased to report outstanding performance in 2013. This achievement was career steps. delivered collectively by all of you, the employees, all senior managers and the Executive Board. You all have every right to be proud of this performance and of the efforts you put forth for HOERBIGER. This in particular benefits succession planning in the HOERBIGER Group. In 2013, Corporate Human Resources managed to fill key leadership positions in the Group with talented individuals It is an important concern of the Board of Directors and Executive Board to preserve, continually from within our ranks. HOERBIGER has thus moved a significant degree closer to the objective improve and cultivate the close bond and sense of identity that the HOERBIGER associates have supported by the Board of Directors to fill approximately 80 percent of all succession-type positions with our company and our values, but also with our performance objective and our strategic goals. with individuals who started their career paths in our company or spent a significant portion of their careers at HOERBIGER. As a result we were all the more pleased about your positive feedback in 2013 in the “Voice for Excellence” employee survey: achieving 58 percent engagement, HOERBIGER has considerably With these successes, which were achieved based on professional human resources work, Corporate improved in a very short time. We thank all our employees for the associated trust you have placed Human Resources has established itself as a Business Partner to the Executive Board as well as to in the company and the HOERBIGER brand. the Strategic Business Units and Business Divisions. With this, it fully lived up to the expectations that we had in 2012 when we upgraded the Human Resources function to a Corporate Division. We on the Board of Directors are also very proud of our senior managers in this regard. Through their personal commitment, which often times goes far beyond the extent that the Board of Directors and Executive Board could expect, they quite obviously instilled enthusiasm among the people for Code of Conduct— HOERBIGER. Obligation to demonstrate integrity and compliance HOERBIGER in 2013 once again managed to launch new product and business ideas with great An important concern of the Board of Directors is to also continually develop the HOERBIGER Group success. This is not only because of experience and knowledge, but above all due to commitment with respect to Corporate Governance. and excitement. We manage the HOERBIGER Group based on our corporate values: Pioneering Spirit, Courage, Fairness and Closeness. They are the foundation of our corporate culture and thus of HOERBIGER’s success. 6 Foreword of the Board of Directors 7

In 2013 we supplemented the principles of corporate governance in the HOERBIGER Group with Farewell Ceremony a new Code of Conduct. With this binding code, the Executive Board as well as all managers and for Christiana Hörbiger associates affirm our commitment to Business Excellence. from the Board of Directors We give our customers, but also each other, the promise to always act with personal integrity and observe legal and ethical principles. As her term ended on September 6, 2013, we officially bid farewell to our family shareholder, Mrs. Christiana Hörbiger, from the Board of Directors of HOERBIGER Holding AG, after 16 years of In addition, we acknowledge our social responsibility as a globally operating company. We respect unyielding commitment to her work. and support the objectives of the relevant international conventions. Christiana Hörbiger decided in favor of a professional career at HOERBIGER at an early age. This path began in 1960 at HOERBIGER Ventilwerke in Vienna, Austria, and would soon take her to enti- Our commitment to academia— ties abroad in England and Italy. The 1980s were marked by a very close working relationship with A contribution to increasing innovative strength Martina Hörbiger, who had been managing the Group since 1945. Another focal area of the work of the Board of Directors is to promote research and development As a strong and legendary owner and entrepreneur, Martina Hörbiger had set out her succession plan in the HOERBIGER Group. We are convinced that the collaboration and the continual exchange of even before her passing and in her last will designated the HOERBIGER Foundation, established in experiences and ideas with universities and colleges plays a decisive role in increasing the Group’s 1982, as well as her adopted daughters Christiana Hörbiger and Sylvia Goldnagl as future sharehold- innovative strength. ers of the HOERBIGER group of companies.

One example is the extremely successful development of the HOERBIGER eHydroCOM system, pres- In August 1989, after the death of Martina Hörbiger, the HOERBIGER Foundation and the two family ently one of our most significant innovations. shareholders were thus faced with the difficult task of continuing to operate the group of companies and appointing the new leadership team from managers of the group for operational management. The technical fundamentals were created by developers from the Strategic Business Unit Compression Technology jointly with the JKU HOERBIGER Research Institute for Smart Actuators at the Johannes The Board of Trustees of the HOERBIGER Foundation, together with the two family shareholders and Kepler University in Linz, Austria. new management, managed to successfully implement this transition and subsequently expedite the international expansion of the HOERBIGER group of companies with increasing intensity. The JKU HOERBIGER Research Institute for Smart Actuators, which was founded in 2010 with the financial assistance of the HOERBIGER Foundation and has since also been supported by the Christiana Hörbiger has always remained true to herself and to the responsibility she assumed as HOERBIGER Foundation, is dedicated to basic and application research in the forward-thinking shareholder, even after the Group organization was founded and in her capacity as a member of the field of smart actuators, a key technology for the future projects of all of HOERBIGER’s Business Board of Directors of HOERBIGER Holding AG. She was always a vigilant member and someone who Units and Divisions. would sound notes of caution and weigh risks in key decisions.

Since its inception in January 2010, the JKU HOERBIGER Research Institute for Smart Actuators On behalf of all members of the Board of Directors, I would like to take this opportunity to again has managed multiple ground-breaking research and development projects not only for the Strategic express my gratitude for the high degree of personal commitment which Christiana Hörbiger has Business Unit Compression Technology, but also for the Strategic Business Unit Automation always demonstrated in her work on our Board of Directors for “her” HOERBIGER companies and Technology. “her” employees.

The success of the collaboration with Johannes Kepler University so far demonstrates that our Stability and continuity have always been important to Christiana Hörbiger, and still are today, and commitment to academia is bearing fruit in the HOERBIGER Group, and that the results that they distinguish the HOERBIGER Group in a special way. We are very pleased that Christiana Hörbiger have been attained are making a considerable contribution to safeguarding the Group’s future in will remain closely involved with “her” Group as Vice President of the Board of Trustees and as our the long run. family shareholder of the HOERBIGER Group.

The Board of Directors sees the close cooperation between the Group and outstanding universities in the polymer technology field in a similarly positive light.

For many years now, a close partnership has existed between HOERBIGER Corporation of America and Texas A&M University in College Station, Texas, USA. An important foundation was laid as part of this cooperation for the development of high-performance polymers used for valve plates, rings Dr. Marcus Flubacher and packings. President of the Board of Directors HOERBIGER Holding AG State-of-the-art technologies in injection molding are presently also being explored collectively by HOERBIGER engineers and students at the Montanuniversität Leoben in Austria. CULTURAL DIVERSITY IS ENJOYABLE—AND MAKES US STRONG HOERBIGER employs a staff of 6,388 people. We understand what matters in our markets. We value our cultural diversity. Working with colleagues from all over the world every day is enjoyable—and it makes HOERBIGER a successful company around the globe.

Aladin Huwyler Human Resources Coordinator Andean Region HOERBIGER de Colombia Ltda. Bogota, Colombia Petra Höller Alan Shao Ipeleng Mabusela Senior Financial Sales Engineer Trainee Mechanical Budget Analyst HOERBIGER Drive Engineer HOERBIGER Technology Changshan Gao Dana Larisa Lazar HOERBIGER South Carolina Aponte Dr. Lily Wang Kompressortechnik (Changzhou) Co., Ltd. Sales & Marketing Trainee Strategic Marketing Africa (Pty.) Ltd. Branch Manager Product Director Holding GmbH Changzhou, China Director & Controlling OEM Alrode, South Africa HOERBIGER HOERBIGER Vienna, Austria HOERBIGER Automotive HOERBIGER de Argentina S.A. (Shanghai) Co., Ltd. Komfortsysteme GmbH Kompressortechnik Sucursal Bolivia Shanghai, China Vitaly Tatarinov Schongau, Germany Holding GmbH Santa Cruz, Bolivia Engineering Vienna, Austria HOERBIGER Ltd. Moscow, Russia WITH TALENT, YOU CAN ACHIEVE ANYTHING—AND SO CAN WE Handing over the helm in Schongau: Thomas Englmann is the successor of Dr. Siegmar Schlagau as a member of the Executive Board and CEO of the Strategic Business Unit Drive Technology. Oliver Gratzel assumed management of the Serial Compressors Business Segment in the Strategic Business Unit Compression Technology from Thomas Englmann. It’s a good succession plan for HOERBIGER, and a great career jump for dedicated next-generation employees.

Oliver Gratzel Thomas Englmann Dr. Siegmar Schlagau Head of Serial Compressors Business Segment Member of the Executive Board Member of the Executive Board in the Strategic Business Unit Compression starting in July 2014 and until June 2014 and Technology and Managing Director of CEO of the Strategic Business Unit CEO of the Strategic Business Unit HOERBIGER Kompressortechnik Schongau GmbH Drive Technology since March 2014 Drive Technology until February 2014 since September 2013 Schongau, Germany Schongau, Germany Schongau, Germany FIRST OUR PULSE GOES UP— FOLLOWED BY THE CUSTOMER’S … … AND THEN THE COMPRESSOR’S The valve regulates the heartbeat of the compressor. When we uncover how we can improve the reliability, efficiency and environmental compatibility of these machines, our pulse goes up. If this ‘fitness program’ also convinces the customer, then compressor hearts beat faster.

Dietmar Artner Engineering Manager / REE Auditor Compressor Upgrade & Revamp HOERBIGER Kompressortechnik Holding GmbH Vienna, Austria Nikolaus Lubega Business Development Manager / REE Auditor Compressor Upgrade & Revamp HOERBIGER Kompressortechnik Holding GmbH Norbert Kürner Vienna, Austria Engineering Manager / REE Auditor Compressor Upgrade & Revamp Markus Wenisch Hervé Ferraris HOERBIGER Ventilwerke GmbH & Co. KG Solution Sales Manager Business Development & Marketing Manager / REE Auditor Vienna, Austria Compressor Upgrade & Revamp Business Development Compression Technology Service HOERBIGER Ventilwerke GmbH & Co. KG HOERBIGER Kompressortechnik Holding GmbH Vienna, Austria Vienna, Austria NEW IDEAS ARE WHAT MAKE MANAGERS—AND WHO WE ARE Like hardly any other initiative before it, the Wellhead Compression Initiative initiated by HOERBIGER in Latin America has developed from a local business idea into a successful business model. Following the success in Patagonia, our managers now support new wellhead compression projects in Siberia.

Gustavo Fernandez General Director – Southern Cone HOERBIGER de Argentina S.A. Buenos Aires, Argentina

Daniel Vazquez Business Development Manager HOERBIGER de Argentina S.A. Buenos Aires, Argentina

Dmitry Kafidov Area Manager Service EAST HOERBIGER Žandov s.r.o. Žandov, Czech Republic FREEDOM FUELS OUR People— AND OUR PERFORMANCE As a result of the acquisition of TurboTech Engenharia Ltda, Salvador, Brazil, in December 2013, HOERBIGER has joined the specialists in North and Latin America in providing maintenance, overhaul and monitoring services for rotating equipment. The expansion of our product and application expertise in the turbomachinery business will create new freedom for us—and even now is fueling the performance of our employees.

Dairo Espinoza Ricardo Opperman Mechanical Technician Head of Product Management Jairo Torres de Silva Paulo Soares de Oliviera Turbomachinery Turbo Machinery – LATAM Technology and Product Development Manager Business Development Manager HOERBIGER de Colombia, Ltda. HOERBIGER Service Latin America, Inc. HOERBIGER Service Latin America, Inc. HOERBIGER Service Latin America, Inc. Bogota, Colombia Deerfield Beach, USA Salvador, Brazil Salvador, Brazil Dr. Siegmar Schlagau CEO of the Strategic Business Unit Drive Technology until February 2014 Gerhard Wagner Chief Human Resources Officer

Johann Hipfl CEO of the Strategic Business Unit Compression Technology

Charles Friess Thomas Englmann Chief Financial Officer CEO of the Strategic Business Unit Drive Technology starting in March 2014 In good shape … 2013 was the best year for HOERBIGER in the company’s history. Norbert GauSS CEO of the Strategic Business Unit We maintained our high level of sales and Automation Technology

Dr. Martin Komischke increased the Group’s profitability. Thanks to CEO and Chairman of the Executive Board the EXCELLENCE & Focus initiative, we are in good shape and strategically poised in all areas. We deliver performance. We love innovations. We set standards. 20 ceo statement 21 2 013 OUR“ BEST YEAR AT HOERBIGER.”

Dr. Martin Komischke

2013 was the best year for the HOERBIGER Group in the company’s history yet. Achieving 1.052 billion euros in sales, we were able to maintain the high level of sales of the previous years—in continued choppy waters, economically speaking, and despite the appreciation of the euro in large parts of the world. The exchange rate of the euro in relation to local currencies rose significantly especially in the United States, Canada, Argentina and Venezuela. For some countries, we ultimately had to post flat sales, or even sales losses, in the Group’s profit and loss statement, despite higher sales in local currency terms. Had the exchange rates remained at the level of 2012, we would have been able to announce a sales increase of approximately 34.5 million euros. 22 ceo statement 23

The second piece of good news is that we were able to considerably increase the Group’s The Strategic Business Unit Automation Technology is positioned for the future with its profitability. innovative product portfolio. In spite of great successes in 2013, sales and income do not yet meet our expectations. Our goal remains to expand the Strategic Business Unit Before interest and taxes, the HOERBIGER Group retained annual earnings (EBIT) in Automation Technology into the third strong pillar of the Group, behind the Strategic the amount of 113.6 million euros. At 10.8 percent of sales, our EBIT margin is in Business Unit Compression Technology. As a result, going forward, we must capitalize the double-digit range for the first time ever, and we have achieved a key goal of the considerably more on our mechanical and plant engineering expertise with new impetus EXCELLENCE & Focus@2013 initiative. from Application Development and Sales.

The third positive signal: we managed to lastingly improve our financial strength in The Automotive Comfort Systems Business Division—which specializes in hydraulic 2013. As a result, the Group’s debt has been largely paid off. actuators for convertible tops and transmission comfort for commercial vehicles and has been under direct leadership responsibility of the Executive Board since 2008—has This additionally strengthens the Group with excellent cash flow values—the best yet fortunately been profitable again, despite declining sales. We continue to see attractive in HOERBIGER’s history. prospects for the future of the Business Division in the development of non-automotive fields of application for powerful and compact hydraulic actuators.

Over the ten fiscal years between 2001—when our revenue was 495.8 million “We have to increase our sales growth. euros—and the end of the 2011 fiscal year, when we surpassed the one billion euro sales mark for the first time, HOERBIGER doubled the company’s performance. All other figures This success is the result of the dedication of the senior managers and employees are in the green.” in the HOERBIGER Group. They deliver their best, day after day, allowing our company to continue to successfully advance in the coming years.

The Strategic Business Unit Compression Technology remains the strongest performer in the Excellence & Focus: HOERBIGER Group. Posting sales of 572.0 million euros, its performance was virtually constant “We are in compared to the previous year’s figure of 574.0 million euros. At a sales increase of 2.7 percent, the Strategic Business Unit Drive Technology again boosted its performance in 2013. While sales of 338.5 million euros were achieved in 2012, the 2013 year-end good shape.” figure was 347.5 million euros.

In 2013, the Strategic Business Unit Automation Technology generated sales of 59.4 million euros, In 2010, we launched the EXCELLENCE & Focus@2013 initiative to ensure that an increase of 4.6 percent over the previous year’s sales of 56.8 million euros. the Group is strategically and solidly poised to meet the future in all areas. And we have succeeded. In 2014, HOERBIGER is in a good position again—we are The Automotive Comfort Systems Business Division posted a decline in sales of 16.5 percent, from in good shape. 79.5 million euros in 2012 to 66.4 million euros in 2013.

The Strategic Business Unit Compression Technology, the backbone of the It is the people of HOERBIGER that continually empower the Group to achieve its Excellence targets. HOERBIGER Group, systematically continued the Aligned Decentralization pro- At the end of 2013, we were a staff of 6,388 employees—316 fewer than in 2012, but a more gram, enhanced its organization, and gained considerable momentum again, in dedicated team for whom performance is equally as important as cultural diversity. particular in the North American service business. The Business Unit managed to recover sales volumes in 2013 that temporarily receded in 2012 and is on target An important milestone in 2013 for our future plans was to fill key functions—both with experts for new growth in the OEM and service business. from the market environment and with committed junior managers from the entities of the Group, something we here at HOERBIGER pride ourselves in. The focusing in the Strategic Business Unit Drive Technology was equally as suc- cessful. The Business Unit won new contracts with attractive new developments, An important prerequisite for discovering and systematically fostering talent was to upgrade the Human considerable investments in manufacturing, and continual capacity expansion. As Resources function to a Corporate Division at the beginning of 2012. The Human Resources Team has a partner to the automotive industry, HOERBIGER was able to pick up the pace since been able to evolve into a global Business Partner and set the course for lasting Management both in Europe and in Asia. Excellence through globally coordinated management development and succession planning. 24 ceo statement 25

“Management Excellence: Aside from technical innovations, it is new business ideas that primarily drive our growth. One example is the global REE initiative from the Strategic Business Unit Compression Technology for the systematic revamp and upgrade of reciprocating compressors. Equally as promising are projects Good choices focused on applying the Wellhead Compression Initiative developed in Latin America to countries in Eastern Europe as well as entering technology-based services for the extraction of residual amounts for our key positions.” from oil and gas fields.

In addition, we anticipate significant growth momentum to come from the expansion of our product After having successfully worked for HOERBIGER for ten years, Dr. Siegmar Schlagau, a member and application expertise in the turbomachinery business. of the Executive Board and CEO of the Strategic Business Unit Drive Technology, is retiring. We found an experienced successor among our own ranks with Thomas Englmann, formerly the Head of The acquisition of TurboTech Engenharia Ltda., Salvador, Brazil, in December 2013 is an important the Serial Compressors Business Segment in the Strategic Business Unit Compression Technology. milestone for this future-oriented initiative. This engineering firm is considered a specialist in North Oliver Gratzel, formerly Head of the Hydraulics and Pneumatics Segments in the Automotive Comfort and Latin America in providing maintenance, overhaul and monitoring services for rotating equipment. Systems Business Division, is assuming Thomas Englmann’s existing management responsibilities. In 2013, the Strategic Business Unit Drive Technology unveiled the HOERBIGER CompactLINE to Thomas Englmann and Oliver Gratzel are two junior executives moving into new, responsible positions. the expert community—an outer cone synchronizer that was specially developed for sub-compact They had the opportunity to show what they are capable of over the past few years. In addition, they are cars and vehicles in the compact class. At present, our customers in the automobile industry are an example of the career prospects that the HOERBIGER Group offers young and talented employees. already conducting initial “feasibility studies.”

In the Strategic Business Unit Compression Technology, Donald “Don” York accepted the position We are convinced that the design approach of the HOERBIGER CompactLINE will allow us, and of President of HOERBIGER Corporation of America, Inc. in September 2013. In this capacity he our customers, to set new standards in the lower vehicle segments in terms of fuel consumption, followed Hannes Hunschofsky, who is now Head of Global Operations and manages the Production transmission dynamics and shift comfort. Business Division in the Strategic Business Unit Compression Technology. In the Strategic Business Unit Automation Technology, the new generation of electrohydraulic actua- Effective December 1, 2013, we were also able to fill the position of Chief Process Officer (CPO) tors developed over the last few years for control valves and machine tools is continually gaining with Klaus Glatz, which was newly created in the HOERBIGER Group and is another key position new market share. important for safeguarding our future. This coincided with the inauguration of the STREAM pro- gram, an initiative by the Executive Board to optimize our global business processes. Klaus Glatz, In 2013, the first production order for a roof drive for convertibles which was developed based on the who brings extensive experience in developing international business processes and IT structures, innovative Type 6 technology started up in the Automotive Comfort Systems Business Division. Our will coordinate the upgrade and future design of all business processes as well as the integration of next objective is to offer the Type 6 modular system, which was originally designed for the cramped these processes into the IT landscape of the HOERBIGER Group in his role as Chief Process Officer. and angular spaces in automotive body construction, for non-automotive applications as well.

“Our Operational Excellence “Product and Service Excellence are our thrives on robust driving forces key processes.” for new standards.” Clearly defined, robust and long-term stable processes are the key for Operational Excellence.

Like no other Business Unit, the Strategic Business Unit Drive Technology gained in strength in 2013 The HOERBIGER brand is synonymous with our corporate values of Pioneering Spirit, Courage, by focusing and improving its earnings. The new construction of Plant 2 in Schongau, Germany, and Closeness and Fairness, but also with outstanding technological innovations and new business ideas. the continued mechanization and automation of the manufacturing operation accompanying this major investment were of tremendous importance in this process. In 2013, the Strategic Business Unit Compression Technology advanced a number of key innovation projects to the field testing stage, among them the HOERBIGER eHydroCOM system—using an all- Efficiency in manufacturing is also a key success factor for the Strategic Business Unit Compression electric actuator for the first time for capacity control of compressors—and the powerful XP valve. Technology. The goal is to sustainably improve profitability in the coming years through consistent cost management in Operations. Innovations such as the eHydroCOM system or the XP valve, which increase the efficiency, reliability and environmental compatibility of reciprocating compressors, will continue to shape HOERBIGER’s In conjunction with the planned introduction of SAP 6.0 software, we identified all key processes core business. throughout the Group, assessed them and, where necessary, reorganized them by the end of 2013. We will address the room for improvement we still see in a few limited areas in 2014. 26 ceo statement 27

“Each and every one of us personally bears responsibility for HOERBIGER.”

We are a respected business partner among large companies, many of them listed on the stock “I appreciate the dedication exchange. In this business environment, a code of conduct is standard procedure, and our business partners have every right to be interested in whether we have comparable internal rules in place.

of our employees … There have always been unwritten rules at HOERBIGER, which everyone was familiar with and with which we aligned our actions. Even in the past, we had an informal understanding of how we, as HOERBIGER employees, would conduct ourselves when dealing with our business partners.

In 2013, we documented the rules of conduct in effect at HOERBIGER in the form of a Code of At the end of 2013, HOERBIGER had 6,388 employees worldwide. It is they who move us forward, Conduct that applies to all employees worldwide. The Executive Board published this code in January year after year, and all of them play a role in being able to again report of successes and future 2014. Together with all members of the Executive Board as well as personally, I advocate that each projects in this HOERBIGER Yearbook. and every employee is familiar with and understands the Code of Conduct and that all employees align their actions accordingly. On behalf of the entire Executive Board, I would like to expressly thank our employees for their commitment and performance. Our Code of Conduct is an obligation to demonstrate integrity that applies to all employees and senior managers of the Group. We expect each and every one of our employees to be sincere in busi- Equally as important to me is the high degree of personal dedication of our senior managers. Through ness and personally, and to display conduct that is within the law and consistent with the ethical their experience, they ensure that innovative products and new business ideas lastingly contribute principles of our society. to HOERBIGER’s growth. “We are well on our way … and Christiana Hörbiger, to becoming a top employer.” For the HOERBIGER Group, the HOERBIGER Yearbook is more than a review of the year and annual our family shareholder.” report. Rather, the selection and preparation of our topics is a way for us to address items that have moved us in the past fiscal year and that are important to us for the continued development of our company. I also would like to take this opportunity to thank the Board of Directors and the Board of Trustees of the HOERBIGER Group. Both governing bodies support and back the future course of our company Following the success of the EXCELLENCE & Focus initiative, which we will naturally continue to with high personal commitment. pursue, one of our most important objectives is to enhance our corporate culture in the context of the company’s values: Pioneering Spirit, Courage, Closeness and Fairness. This applies in particular to our shareholder, Mrs. Christiana Hörbiger. After 16 years of unyield- ing commitment to her work, she decided in 2013 to step down from the Board of Directors of the As a result, the HOERBIGER 2013/14 Yearbook is again centered around the people of HOERBIGER— HOERBIGER Group and, going forward, to focus her dedication more extensively on her duties as a and what we will offer you, our employees, in the future. member of the Board of Trustees of the HOERBIGER Foundation.

In Germany, HOERBIGER was once again selected as a top employer. It would be a major success for me personally if, in 2014, an overwhelming majority of our employees were again to affirm in our Dear Mrs. Hörbiger, annual “Voice for Excellence” survey that it is worthwhile to be a part of HOERBIGER. The employees, senior managers and all members of the Executive Together with all the colleagues from the Executive Board, I look positively to the future of HOERBIGER. Board thank you for your active role in the development of our company. We are delighted that you will continue to oversee the HOERBIGER Group as Vice President of the Board of Trustees and look forward to your continued sound entrepreneurial judgment in n We embody diversity. all decisions for the coming years. n We deliver performance. n We love innovations. Dr. Martin Komischke CEO and Chairman of the Executive Board HOERBIGER Holding AG That is what matters. 28 highlights 29

highlights

Jugend forscht The “Jugend forscht” and “Schüler experimentie- ren” competitions, which in 2103 HOERBIGER in Germany sponsored for the ninth time in the foothills of the Alps, posted record registration yet again at 110 participants and 59 projects.

HOERBIGER had two special prizes in store for long-standing successful young researchers: they took the “Jugend forscht” award winners to the Ottobock Science Center in Germany’s capital of Berlin as well as to the JKU HOERBIGER Research Institute for Smart Actuators at Johannes-Kepler University (JKU) in Linz, Austria.

The JKU HOERBIGER Research Institute for Smart Actuators founded in 2010 with the financial support of the HOERBIGER Foundation conducts basic and application research in the forward-thinking field of smart actuators, a key technology for the future projects of HOERBIGER. 2013 February

Contract Signing: HOERBIGER Moves to Vienna’s Urban Lakeside HOERBIGER was the first major enter- prise to settle in the Seestadt Vienna Aspern quarter of Vienna, Austria, presently the largest urban develop- Efficient Engines for the Asian Market ment project in Europe. The employees working in Vienna, who today are still HOERBIGER and L’Orange GmbH, a diesel injection system specialist accommodated in several locations of headquartered in Stuttgart, Germany, on January 1, 2013 agreed on a the urban area, will work together in a joint venture under the name of D’BLUE for diesel and gas-fuel engines new building under one roof starting in on the Asian market. Effective immediately, the companies will jointly 2016. HOERBIGER is investing a total offer injection and control technology aimed at boosting the efficiency of 45 million euros in the new location. and lowering emissions of large engines.

January February 30 highlights 31

HOERBIGER Antriebstechnik GmbH First Drive Technology in First Place in “DeutscheIdeenPreis” Symposium Girls’ Day Between October 2012 and the end of March 2013, employees of HOERBIGER With the objective to intensify the professional Girls’ Day in Austria and Germany: on the Antriebstechnik GmbH in Schongau, Germany, submitted over 4,000 improve- exchange between science and practice, the occasion of Girls’ Day in Vienna, HOERBIGER ment suggestions. In relation to the benefits of the suggestion program per Strategic Business Unit Drive Technology ini- Ventilwerke GmbH & Co. KG invited their employee, HOERBIGER ranked first nationwide in the automobile supplier indus- tiated a Management Symposium featuring employees to bring their daughters to work. try group with an average 12,473 euros per improvement suggestion. This earned technical presentations and a panel discussion: The girls, between the ages of 11 and 16, HOERBIGER Antriebstechnik GmbH the award for best idea management in the internal and external experts took a look at Drive gained insights into the company’s history “DeutscheIdeenPreis 2013” competition. Technology of the future. at the HOERBIGER Museum. During a plant tour of the Vienna site, they familiar- March March ized themselves with the latest manufac- turing processes. 27 female students from the Weilheim-Schongau District used Girls’ Day to learn about technical trades at the HOERBIGER Learning Center in Peiting, Germany.

April

50 Years of HOERBIGER Corporation of America On April 9, HOERBIGER Corporation of America (HCA) in Fort Lauderdale, Florida, USA, celebrated its 50-year anniversary. HOERBIGER took the milestone anniver- sary as an opportunity to invite all employ- ees and their families to a gala and Open D’BLUE: Debut in Shanghai House. Employees working for HCA in Houston, Texas, also attended. As a result, HOERBIGER and L’Orange for the first time the anniversary turned into a family cel- unveiled the D’BLUE project to the expert ebration with more than 800 attendees. audience at the 27th CIMAC World Congress: in Shanghai, China, the companies showcased April their collective product range for large engines.

May Red Dot Design Award Ground Breaking Ceremony for new for HOERBIGER TriVAX Stamping Facility In Schongau, the Strategic Business Unit Drive Technology held An expert panel consisting of 37 internationally renowned, independent specialists a ground breaking ceremony for a new manufacturing facility for selected the HOERBIGER TriVAX valve actuator for a Red Dot Award Product Design formed synchronized parts on April 30, 2013. It only took until because of its unique configuration. The Red Dot has been one of the most coveted September 27, 2013 to hold the topping-out ceremony. The first design awards worldwide for many years. Only the best of the best are permitted extended table press for the new production hall in Schongau arrived to label their successful industrial designs with the red dot. on October 8, 2013.

March April 32 highlights 33

New location in Argentina Given the positive business development in the Wellhead Compression business, HOERBIGER Leadership Transition opened a new service branch on June 12 in in Drive Technology Añelo, Argentina. Añelo is located at the center of Argentina’s crude oil production, approxi- The Board of Directors of HOERBIGER mately 60 miles from the Province’s capital Holding AG gave the green light for a of Neuquén, where HOERBIGER is also repre- generational change at the head of the sented. 33 employees work at the new location. Strategic Business Unit Drive Technology. Dr. Siegmar Schlagau, a member of the June HOERBIGER Executive Board and CEO of the Strategic Business Unit Drive Technology, has decided to transfer man- agement of the Business Unit to Thomas Seminar Debut in Myanmar Englmann effective March 2014. Thomas Englmann was formerly Head of the Serial HOERBIGER KT Asia Services Pte. Ltd. for the Compressors Business Segment in the Revolutionary CompactLINE first time organized a seminar for the petro- Strategic Business Unit Compression chemical industry in Yangon, Myanmar. In total, Technology and Managing Director of HOERBIGER 2013 Soccer Cup Compact, efficient, cost-effective: HOERBIGER introduced the new 14 engineers and managers from the circle of HOERBIGER Kompressortechnik GmbH, CompactLINE synchronizer for the first time to the expert community regional customers attended. Schongau. Just before the summer holidays, the HOERBIGER 2013 Soccer Cup was a at the International VDI Congress “Transmissions in Vehicles.” The sports highlight in Schongau, Germany. Competition on the fields of Turn- und product was developed specifically for manual and double-clutch June July Sportverein Peiting on July 24, 2013 was intense. The 105 players of the ten transmissions in the high-volume compact and mid-range car seg- teams from Schongau’s Welfengymnasium as well as from Peiting’s, Steingaden’s ments. OEMs and transmission manufacturers will benefit from and Schongau’s middle schools were cheered on by a large number of schoolmates. CompactLINE’s significant weight and size reduction with best-in- HOERBIGER apprentices used the sports meet to again advertise for attractive class shifting comfort. training and apprenticeships at HOERBIGER.

June July

1000th HydroCOM system supports Schongau Summer During the 2013 Schongau jet fuel production in Japan Summer, 90 volunteers from HOERBIGER entities in Schongau, HOERBIGER celebrated the order of the 1000th HydroCOM Altenstadt and Peiting donated their system. It will be used in a reciprocating compressor for time to introduce visitors attending hydrogen processing in the Negishi refinery of JX Nippon the Historic Market to HOERBIGER. Oil & Energy Corporation in Japan. Hydrogen is used in the Year after year, this major event Negishi refinery to desulfurize crude oil in the production of draws tens of thousands of visitors premium jet fuels. JX Holdings, Inc., the parent of JX Nippon to Schongau. HOERBIGER minted Oil & Energy Corporation, ordered its first HydroCOM system over 1,500 coins on a hydraulic from HOERBIGER approximately ten years ago. The company press, collecting 1,175 euros in has since purchased more than 20 HydroCOM systems for donations to benefit St. Hedwig capacity control of its reciprocating compressors. Children’s Home in the Böbing community.

July August 34 highlights 35

Business Run in Vienna On September 5 in Vienna’s Prater 25,638 runners and Nordic walk- Christiana Hörbiger’s ers set out on the 13th Business farewell from the Board of Directors Run—with record participation. HOERBIGER competed with 69 On August 23 at the Hotel Schloss Dürnstein, Austria, the Board of participants from the Vienna loca- Trustees, Board of Directors, Executive Board as well as international tions. senior managers of the HOERBIGER Group held a festive farewell ceremony for family shareholder Christiana Hörbiger on the occa- September sion of her retirement as a member of the Board of Directors after 16 years of service. As Vice President of the Board of Trustees, Christiana Hörbiger continues to be involved in the development of the HOERBIGER Group on the HOERBIGER Foundation, in HOERBIGER Tectum Holding AG as well as a shareholder of the HOERBIGER Group. August China is number 1 in HydroCOM ranking

Ten Years of HOERBIGER Rings & Packing HOERBIGER celebrated the 10th HOERBIGER “European Soccer Championship” anniversary of the acquisition of in Žandov, Czech Republic GRAFLON Compressor Division from Morgan Advanced Materials On the occasion of the 20th anniversary of the HOERBIGER Czech branch, & Technology Group in Houston, associates from HOERBIGER Ventilwerke GmbH & Co KG, Vienna, Austria, Texas, USA. This acquisition allowed The staff of the MC&S Department of HOERBIGER in Shanghai are excited about the success of and from HOERBIGER Kompressortechnik GmbH, Schongau, Germany, visited HOERBIGER to further cement its the HydroCOM system in China: on September 18, 2013 Dalian Petrochemimal, a subsidiary of their colleagues of HOERBIGER Žandov s.r.o. A total of 153 employees from leading market position in this China National Petroleum Corporation (CNPC), ordered a new HydroCOM system from HOERBIGER Production, Sales and Administration as well as 20 employees of the customer segment as a developer and manu- Shanghai Co. Ltd. (HOESHA). It was the 200th HydroCOM system to be installed in China after Sauer Compressors Žandov participated in the soccer tournament, which the facturer of rings and packings for HOERBIGER’s launch of the control system in China in 2000. China has since become the country customer’s team ended up winning. reciprocating compressors. with the largest number of HydroCOM control system installations worldwide. This trend is driven by the government’s energy savings goals, but also by equipment operators, who value the stability September September and accuracy of the automated control system.

September 36 highlights 37

REE Webcast On September 19, at 9:00 am Texas time or 4:00 pm Central European Time, 175 decision makers from the oil and gas industry Automation Technology combines were watching HOERBIGER’s first webcast. During the moderated Business Segments online presentation—which was organized by the technical magazine Hydrocarbon Processing—HOERBIGER service experts introduced The Strategic Business Unit Automation Technology announced the REE audit, a new service product for systematic revamps and that the existing Business Segments Industrial Machinery and upgrades of reciprocating compressors. Voice for Multi Market would be merged to form the new Compact Motion Technology (CMT) Business Segment. The objective is to support September all the customers from the mechanical engineering industry—cov- Excellence ering everything from machine tools to medical technology—with a strong marketing, sales and engineering organization that is The results of the second Voice for Excellence managed according to uniform procedures. survey were announced: Employee engage- ment in the HOERBIGER Group improved in December 2013 from 48 to 58 percent compared to the previous year. Participation rose from 72 per- cent to 81 percent. The Voice for Excellence Another Red Dot Award: survey measures the employees’ engagement for www.hoerbiger.com based on very clearly defined criteria, which are essential for this process. The survey HOERBIGER was presented with the second Red Dot Award in one is part of the Voice for Excellence initia- year in Berlin for the website that was relaunched in September tive that was launched in 2012, with which 2012. This made the company one of 40 winners in the “Online HOERBIGER strives to continually increase World” category. Some 6,800 entries were submitted worldwide employee engagement in the company. for the Red Dot Award: Communication Design 2013. November October

HOERBIGER Code of Conduct TOGETHER project The Board of Directors of HOERBIGER Holding AG adopted the HOERBIGER Code of Conduct. The TogetheR project went live in Dubai. The The Code of Conduct is intended to help man- objective was to create a globally standardized agement and all HOERBIGER associates with its IT process landscape that was harmonized with binding guidelines and to provide reliable indi- the logistics requirements of the service enti- cations of what constitutes proper or improper ties in the Strategic Business Unit Compression conduct as defined by HOERBIGER when dealing Technology. The Executive Board followed the with customers, suppliers and other partners in event by video conference from Vienna. Johann business and in public. Hipfl, a member to the Executive Board and CEO of the Strategic Business Unit Compression December Technology, started the server in Dubai via the Internet. The project team had prepared the suc- cessful system launch over a period of approxi- mately three years.

November 38 People of HOERBIGER 39

CULTURAL DIVERSITY IS ENJOYABLE— AND MAKES US STRONG

HOERBIGER employs a staff of 6,388 people. We understand what matters in our markets. We value our cultural diversity. Working with colleagues from all over the world every day is enjoyable—and it makes HOERBIGER a successful company around the globe.

“Our employees are our team. We develop the talents that our Strategic Business Units and Business Divisions need to remain strategically and operationally successful worldwide.”

gerhard wagner Chief Human Resources Officer and member of the Executive Board HOERBIGER Holding AG 40 People of HOERBIGER 41

EMPOWER PEOPLE Whether it is the component or business model— invented. Today, HOERBIGER is setting stan- “Excellence” means continuously delivering top the efforts at HOERBIGER are always centered dards with continually enhanced innovations for performance in research and development, in TO EXCELLENCE— around the goal of making a lasting contribution valves and control systems for reciprocating com- terms of the functionality and reliability of prod- PEOPLE OF HOERBIGER to the added value of our customers. This is also pressors, but also with passenger car synchroniz- ucts, in quality and dependability of services, what the HOERBIGER brand stands for: because ers made of formed steel, and electrohydraulic the development and implementation of new Conformity is undesirable at HOERBIGER. As performance counts. valve actuators for the process industry. product ideas and business models, in instilling a trendsetter in technological niche markets, enthusiasm among our employees and providing HOERBIGER is an enterprise where new ideas The vision and mission of the HOERBIGER them with leadership. find fertile ground. We know that the 6,388 Group create the strategic framework for the Our Mission: employees at HOERBIGER are directly respon- daily commitment of our senior managers and EXCELLENCE & Focus “Focus” refers to the need for all of HOERBIGER’s sible for our success. We are successful because employees. business activities to meet our corporate stability we rely on the commitment, the knowledge and In our mission statement we express how we criteria. They define the playing field and rules the experience of the people of HOERBIGER— model the continued development of our com- for our Strategic Business Units and Business and because we believe in our success. Our Vision: pany based on performance-defining compo- Divisions. To generate growth in the long run, We set Standards nents. This mission is centered around the terms every product and every service must satisfy the We are interested “Excellence” and “Focus”. requirements of these stability criteria. in creative people Our customers are companies from the oil, gas At HOERBIGER, we are interested in creative, and process industries, the automotive field, as entrepreneurially thinking people. They are the well as mechanical and plant engineering. For VISION: WE SET STANDARDS ones who repeatedly develop new ideas: for tech- them, we develop components, systems and nologically sophisticated, performance-defining services that, due to their unique selling propo- components and for innovative business models. sitions, decisively influence the function, per- Wherever we operate, we set standards with tech- n in the oil, gas, and process industries, formance and economic efficiency of machines. nologically sophisticated key components and n in the mechanical and plant services and thereby enable our customers to engineering industry, Our objective is the ongoing development of new sustainably increase their company value n in the automotive industry. key components and services through continuous innovation—innovative products and, related to these, business models with compelling unique selling propositions: developments that have the potential to set new standards in our markets.

Hanns Hörbiger managed to do so for the first Mission EXCELLENCE time in 1895 with the steel plate valve he

PRODUCT EXCELLENCE MANAGEMENT EXCELLENCE Our products combine customer value and We develop business ideas and turn them into unique selling propositions. long-term success. Vision We set Standards. We are able to anticipate the expectations of Through our strategic thinking, resolute action our customers. and exemplary leadership, and by continuously developing the employees and, along with it, Mission Service EXCELLENCE management quality, we turn innovative business Performance-defining Components Our Service combines technology and efficiency. ideas into long-term success. Excellence Focus We combine the expertise and leading technology OPERATIONAL EXCELLENCE of a Group with the efficiency and proximity to Our operational processes and technologies are People and Values the customer of a decentralized organization. We benchmarks. Pioneering Spirit — Courage — Fairness — Closeness offer customer value and unique selling proposi- tions in Service. Our products and services set standards because they are supported by robust business processes, Origin balanced operational success factors, and con- Hanns Hörbiger — Alfred Hörbiger — Martina Hörbiger scientious capital investment. 42 People of HOERBIGER 43

Our foundation: In the years after the end of the Second World We are proud of tures. For many years, this kind of positioning Heritage and values War and after the untimely death of Alfred our traditions … assured our success. Nonetheless, this decentral- Hörbiger in July 1945, his wife Martina Hörbiger ized organization is limiting future growth, since With his development of a highly innovative steel managed to rebuild the plant in Vienna, which We at HOERBIGER take pride in our heritage, economies of scale and synergies cannot be fully plate valve for his time, Hanns Hörbiger in 1895 was almost fully destroyed, and very quickly our family tradition and our corporate values. and adequately realized. laid the foundation for the present Group. It fur- resumed the company’s international relation- Still, our continued growth and our involvement thered the evolution of blast furnace technology ships. in global markets have led to a clearly different For HOERBIGER to continue to grow in the and prepared the way for piezo-chemistry. market environment. future, we must set the right course now and For more than a century, HOERBIGER has adapt it to the changed challenges. Hanns Hörbiger’s oldest son Alfred started the in- been shaped by the pioneering spirit of Hanns To remain strategically successful internation- house production of valves in Vienna-Simmering Hörbiger, the entrepreneurial courage of Alfred ally in the future, we need organizational forms HOERBIGER has immense knowledge at its in 1931. and Martina Hörbiger, proximity to its custom- and business models in our Strategic Business disposal in terms of technologies, processes, ers, and fairness toward business partners and Units and Business Divisions that embrace the products and services. Some of this know-how employees. Our corporate values—Pioneering requirements an increasingly globalized world in today only exists in a very decentralized form. Spirit, Courage, Fairness and Closeness—are a variety of ways. To remain successful, we must ensure that this the direct result of our heritage. knowledge is available throughout the entire This requires us to intensively explore the company. Employees at our locations and in our following questions and find suitable answers entities must be able to learn from each other, for HOERBIGER: for example in order to adopt proven practices across organizational and geographical boundar- PEOPLE AND VALUES n How can we pursue and implement global ies or adapt innovative business models. strategies while preserving freedom locally? PIONEERING n Overcoming your own boundaries The combination of our values is unique. Another challenge is that as a global partner to SPIRIT n Approaching new tasks without already n Is the delegation of entrepreneurial respon- our customers, we must ensure that business knowing the solution Pioneering Spirit and Courage shape the sibility, which has allowed us to successfully processes can be centrally managed consistently HOERBIGER culture of innovation—Fairness and grow internationally in the past fifty years, and reliably, while preserving high local flexibility. Closeness define our conduct toward suppliers still the right course of action today and in and customers as well as among each other. the future? fairness n Toward employees, customers, suppliers The global cultural and all other business partners Our employees who embody the brand values n In our global decision-making structures, transformation commands are the hallmark of HOERBIGER’s success. They how do we manage to motivate entrepre- provide the HOERBIGER Group with a distinc- neurially-minded associates to develop active participation tive profile. new and additional business ideas, such COURAGE n Taking carefully weighed risks as our Wellhead Compression Initiative in We are part of a global cultural and structural n Taking responsibility and seeing the job the Strategic Business Unit Compression transformation. Our customers are striving for through even in difficult situations Technology in Argentina? a global presence and are expecting the same from us. This necessitates a mind shift on the n How can we create structures that allow part of management, and structures that make knowledge within the company to be made it possible to actively participate in this trans- Closeness n Worldwide presence, familiarity with all available in order to effectively translate formation. cultures successful initiatives from one region to n Knowing the customers and their needs other markets? The most important resource for HOERBIGER is our employees. We need well-informed and quali- Today, these questions can no longer be fied employees to shape our future. We therefore answered solely by the Strategic Business Units advocate that young people, as early as during and Business Divisions on their own. their training phases, develop their own traits which empower them to assume responsibility in Because HOERBIGER has evolved historically, every respect—for themselves, for their families, many areas still have highly decentralized struc- and for their duties on the job. 44 People of HOERBIGER 45

EMPLOYEES OF HOERBIGER nization which is familiar with the needs of System that has been in effect worldwide since Remaining countries the market, understands the language of the the beginning of 2014, initially for all senior 1,076 In 2013, the HOERBIGER Group had a total of business, develops customized personnel solu- managers, to a new bonus model, to the “New Germany 2,001 6,388 employees. Of these, 4,051 worked in the tions, and communicates with management on Blue Book.” This guideline on management sys- Czech Strategic Business Unit Compression Tech­nology, an equal footing. tems in the Group was specifically developed to Republic 1,415 in the Strategic Business Unit Drive familiarize our future management employees 143 Technology, 337 in the Strategic Business Unit We have invested time and money in the devel- with these systems. All programs are supported Automation Technology, 329 in the Automotive opment of modern management systems: from by the interactive learning and development plat- Poland 197 Comfort Systems Business Division, and 255 in a Goal Setting and Performance Management form “Always learn.” corporate functions. Canada 240

Human Resources Organization 2013

Austria 449 Human Resources as a HR Business Partners assume responsibility, and Business Partner— they expand the traditional role of an admin- istratively oriented Human Resources organi- zation: Human Resources becomes a strategi- India On an equal footing with cally oriented driver of continual change in the 612 USA business operations 983 Group, offering an important added benefit to Human Resources, HR for short, became a the employees and management in day-to-day China 687 Corporate Division on January 1, 2012. As Chief operations which plays a visible role in their busi- Human Resources Officer of the HOERBIGER ness success. Group, Gerhard Wagner is a member of the Executive Board. Human Resources Specialists HR Specialists are experts in certain domains By organizing Human Resources as a Division, within the Human Resources organization— Another prerequisite for sustainable growth is Human Resources– we emphasize the importance that we, at such as in terms of classifying employees based executives who are able to handle the complex- A new Corporate Division HOERBIGER, attach to the selection and foster- on global benchmarks, compensation system ity of a globally operating group. In addition to ing of all employees with a view to the future of structuring, performance assessment in the senior managers with local and regional respon- The cultural transformation that is needed at our company. It also underscores the high priority Performance Management System, or training sibility, this essentially also includes managers HOERBIGER to cope with future challenges of Management Excellence in the HOERBIGER programs on the HOERBIGER learning and devel- who can lead international teams. places particularly high demands on the Human Group, which relates primarily to the develop- opment platform “Always Learn”. Resources Corporate Division. ment of executives. Managers with global responsibility can no longer The processes they define create the structures personally communicate with each and every The Human Resources Division has worldwide The close partnership with the operational in the Group and with this, the basis for the employee on a daily basis as a result of physical responsibility for the human resource policy in business results in new role models for Human strategic advancement and necessary continuous distances and different time zones. Indirect lead- the Group, personnel management, developing Resources managers. These necessitate qualifica- transformation of the Group. ership tools are therefore gaining in importance. and advancing employees, and training and tion profiles that in some cases differ consider- Even though, in the future, our managers can no selecting executives. ably from the HR manager. Human Resources Administration longer be present everywhere, their influence The employees in HR Administration are experts and their results must become visible worldwide. In its new task as a Corporate Division, the Human Resources Business Partner in staff recruitment, personnel development at Human Resources function increasingly out- As contacts on an equal footing, HR Business the locations as well as all administrative tasks. With this in mind, it remains our goal to nur- grew the traditional role of the operationally Partners assume an advisory and participative HR Administration assures stable processes and ture and preserve the “HOERBIGER spirit” of oriented “human resources administrator.” function in the development of business models uniform standards at the global level for handling being an industrial conglomerate with a family Human Resources is instead evolving into a and expansion of business activities. They have personnel-related topics. tradition. strategic partner for the Strategic Business relevant subject-matter expertise and understand Units and Business Divisions. The Human the business models of the Strategic Business The HR Administrators from the backbone of the Corporate Resources Division is now an orga- Units and Business Divisions. HR organization as a whole. It is stable admin- istrative processes that create the freedom to perform strategic tasks. 46 People of HOERBIGER 47

Our produ P cts c R un omb O E ique ine D s W se c U C rk e are lli us a in a ng to C N hm pos p m c s, itio ro e T E n sse n to p r L be oce o an os v & pr TMENT f ou tic i al L re ss INVES r c ip ti u a ne . AL us ate o e E si nt PIT C to t n s bu e CA Product Exc U m he s a S e st stm S ellenc ST er e n C i u ve OU e OM s. x d g b n I sets pital • Our produ E pe E o ro l i NT d as king ca cts are R c l y ta IE fi xe e wor • they of perf V ta X o b i C our e th fer sma orma A t R d ap S se miz • an rt sol nce LU io n te c N y u pti e. d anticipa ution -de n E h r s O ntl ly o olum te so s to fi n E s V All goals are logically assigned to the o u C ie us s v lutio co ing Mission Excellence— c p o ffi c uo ale ns t mp , e p ti e tin e s o p lex t su n e on th S rob p I L e W c to ervice E lem ro e i L • nd e xcell s bl HOERBIGER Excellence dimensions—Product d r sc A a tiv ence . em C n a n • la • O s y o N re ur service A new benchmark A a e c O s prov h I S • s ustainab ide E and Service Excellence, Management Excellence s t d T R ly imp the e n A s, reliab rov cu W N e s a R O d ility, ef e th sto O u , T ar fi ci e p m e s s E d techno enc er ers u s a r C n re logy, y a fo w c E for goals and and Operational Excellence. c o P l, a u nd rm it r O e e t O A o st s • c onside th an h a o b c F tr n . rably e e c u n m s a n ty e r inc n e nr I c f D o li o e capital re vi of iv d b e X s S c a t m inve ase ro m a c i o d s E u s o stm th nm a le u p n r r s S r c t en e c d r r a C E e q ti s t. e en h p P s o e v T e d r s u ffi t in r t performance bonuses p d c N C n u i c ci t e o ro o x t i C u o g I continuously optimize the en h s d m i h n c o e 21 c ro i u • d m c Each Excellence dimension was assigned char- l a A C s w l th y u n c u e t u L t e e working capital relative to the o g t • b c e i e A a s s U s i s o f h te s, e t r t e o v i t o r • b c y E t l A S c e c sales volume. u in m e E v x s n r ty r n b a x e a B r re i c s c u a t p n u y l u o o e a s c o e The focus of the consistent, coordinated align- acteristic behaviors, which are essential for o s l p i s v c u e l c R i o o s b t a f S a e u r s i y a o t e s l t L t t e u o i m iv u e t le e h t o e v o l l e r s h U i a e e • v t e n e s a a u p r r i e h a m c r h n s c y c N e ment of the HOERBIGER Group and its Strategic achieving one’s individual objectives. In the E r i i m ’ b t e n L e t y e e h a e c v e e r • e y I d a e r p n e c E e r Q u b W d v n a y o e n e o o i b t x s c n i u c f u i p s l • e r s a f u U t d E • a e p c e e n e n n o n Business Units and Business Divisions with the various Excellence dimensions, a total of 21 P d I open up to the customers e e r • d 1 a l t r E i m l o d e b r u G o l i i • f e c s v q e e n I balance costs, quality and opportunities and technical e o s r u m c 20 t c o n i a u e a r h r e r p S N a n a m u c a l execution time to ensure e S a e e r d O solutions which they did not r u w p e r a d E strategic and operational targets is the new behaviors outline the ideal manager we look for u s e s a e t t o i l e t t e n a e , s n S outstanding customer experience. b r s L e a even think they were possible. c h t v e f O c y w s o g b g e a i L u E i i c o l l a c n e v t u C n o s e l I l t d i e u i S c d f t N d e Performance Management System developed at HOERBIGER. i n h n d s t o i r e o e o d t i e c r S i o g a a v u e s a n G n r e n c h p s t p f s E t r f E l a s p n e o o e o r c i f P C s s h r in 2012 and 2013 by Human Resources, and t p u l t o n o u u e a a h o r o s R l l O o . n d l s t e p O s t , o c r o o u e o k t o O a R e a u o g n w m h n m i e d r l g , e s y t y o P i the “Rewards for Excellence” bonus model based We are convinced that the conduct set out P b e d c p i z n o w m r k y e u u t o l l O o s e e , i d l n e p s ’ s S , c I turn innovative ideas into e o f h i o x d 2 t S m t n m d a v o m w n a m I assign clear roles and e h p S g EE unrivaled products and services a e m e 19 R o thereon. in the Excellence dimensions is essential for N a I e e g I l s h O N l s e r n e T t I c G E r u o n h u responsibilities when e r G s

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• opportunities that contribute to S • d u s p I show persistence in carrying personal conduct. With this, we achieve an inte- The individual performance of associates as a i Hoerbiger strategy. a c c 16 e s e r e o l n o l c c e e f e out my own ideas. r r d o 8 b r fi d e p c u a c u v s i t si o t e s i m i c n y e r f u grated evaluation of the performance of each manager or team member will always be evalu- n t r I act as role a u . o g n y f p g s t l I advocate decisions by n p e t e o 5 d t l a s . l e t i I accept failure as an opportunity model for our o y f 15 n a h n n e s . m s demonstrating their long-term ti r a a r a u e d n for the organization to learn. HOERBIGER a t individual. Initially, these new tools will be intro- ated integrally. In addition to assessing the r t s e e o c t g z d n s r v benefi ts. i d c i e I push things n n e i G g a a values: Courage, i n . t e r 6 t a t i h c t a s n s v ti i s n a N s t i o I delegate challenging Pioneering Spirit, forward by making i g e o r s g c v 13 x r t i o I duced for senior managers in the Group, and achievement of goals, the performance evalua- , i n o t e d e e e a t tasks to give talents a p n I h e s r Fairness and timely decisions r r a r i K N , i e e o u e a d u l o s l h p c u N m s e i chance to grow in the Closeness. regardless of pressure t o r a N e b I f a s f o v d later for all employees in “white collar” positions. tion also considers the conduct outlined in the o s e o e e company. and confl icting conditions. t c O r o a n w H f f n My communication s r s a e V f o 9 u e u i T e r l h l n c t a ti o t a A t n h inspires and engages v li i r i e e e i e t o C Excellence dimensions—corresponding to the T v w b v m n I e all employees. e ri o e f l a r t s T I y W p e e G . O a d f o r h a I build a strong pool of n p E s N n 14 I strive to be close to the I act consistently with the • c e u With this new future-oriented approach, we have “how” in terms of achieving the goal. The “what” r 10 7 io t s T s o d talent as an asset for the W t e a e u needs of my people. decisions made. c rk e A • a a c g entire organization. m R c h • M r I encourage and reward con- u T u employed a multi-stage process and systemati- and “how” of achieving the goal are the deter- W 11 g • o s o e n d S u an a structive criticism as a source i n r d p a m • d e v lo r r s ev n a of competitive advantage. ve e e cally broken down our strategic and operational mining factors for our employees’ performance. t W e vi nc e nn y t r e lo ro e d a sl r - a an s p n o With my actions I support the es m u u g t i d u t m ur 12 ir y o o n e n p h e e qu el u of g d co po ei nt m benefi t of HOERBIGER as a whole, re in lo goals, as they relate to the individual targets i iv n r r w p n tim . nt ct c id ti t t pe h lo io . a m o a o u n a rs ic ye going beyond the interests of my ct ns n e c p t th a ui le o h es e a io i th to im n l. n nt na al b own group. lut is ns t s i in g t l lo y c so ec io en u he s of the members of the Executive Board, to all In our new “Reward for Excellence” bonus k D ed hr po ws re Re c d is m r t E u ou te ev ati • ifi ec le fo ze a in V ca g nt er ng • pec e d p g i e g ti h ia yon W e e s and s ak im yin im id , E on sp l. e t xemplify o rate Value m tly sa pt hierarchy levels. model, the performance displayed by each man- r L t ec o see ur Corpo W e ten ut o s e O ha ifi c ourse le. • sis ho nd s s P t i tr • W lves as part of a who con wit k a N e o M s g ain e mo touch, es ec IO in lu A ear ing tivate through our personal n. go ch s ager functions as a multiplier, influencing the t N E ed enth icatio • It or, T u e D N to • usiasm, ommun nit . C b a T the W e and transparent c sks mo ns A e c M O seize o e the ri isio E v ti A F of pportunities and evaluat dec T ti amount of the bonus. on N E our act LU va a A M ion. O o n G P S nn d EM LO RE i ex E YE rn em NT ES tu p we lar y, y l E lit ead XEMPL ERSHIP ua er ARY LEAD nt q shi me p, a age nd b an y co it, m W ntino g with e usly dev d, alon ss de eloping the employees an cce velo su p bu -term sines long M s ideas and turn them into E ANA NC GEMENT EXCELLE

The Excellence dimensions—Product and Service Excellence, Management Excellence and Operational Excellence—as well as the Corporate Values—Pioneering Spirit, Courage, Fairness and Closeness—form the basis for the 21 behaviors that HOERBIGER executives use for reference. 48 People of HOERBIGER 49

Pay for Performance To assist our senior managers and employees in In December 2013, the members of the developing their skills in the various Excellence Executive Board set their goals, proceeding from Behavior dimensions, and also to give manag- the Group’s strategic and operational objectives Excellent compensation The central idea is that excellent performance potentially has the greatest influence on the ers and employees an opportunity to collectively that were reconciled with the Board of Directors. for excellent performance should receive excellent compensation. calculation of the bonus payment. These discuss individual development matters, we have The remaining levels of management then used factors together form the bonus multiplier. developed guidelines for all levels of manage- this as their basis for developing corresponding Our newly devised bonus model, the Three aspects are factored into the calcula- ment. These “Development Guidelines” include individual and team goals for 2014 by the end “Executive Bonus Plan”, for our top tion of the bonus: the corporate result, the The bonus multiplier is multiplied with the detailed information about the Excellence dimen- of February 2014. executives is a “Reward for Excellence” result of the respective Strategic Business annual base salary and the corresponding sions and concrete examples of measures for initiative and seamlessly ties in with the Unit and the employee’s individual perfor- bonus target, resulting in the bonus payout. developing these skills in everyday business life modality of the Performance Management mance, derived in the form of a key indicator at HOERBIGER. System. It links the bonus, that is, from the Performance Management System. Overall, the new model is more narrowly the performance incentive payment The individual performance is composed of defined and therefore easier to understand for our senior managers, to the perfor- an integral analysis of the scope in which than the existing model. It is aligned with mance and behavior goals set out in the employee has achieved the targets and current market trends and functions inde- November / December the Performance Management System. the leadership conduct demonstrated and pendently of organizational changes.

Executive Board Budget Approval & Goal Setting End of Year Corporate SBU Targets Individual Performance & Targets Performance Development Reviews Overall Rating Profit after EBIT Margin/ Bonus of individual Taxes (PAT) Net Sales multiplier Goal Setting & performance Development January / February Discussion

Mid Year Performance & Target achievement 0–130% Multiplier Development July Review Low individual or company performance = Supports a high performance culture No Bonus! and recommended for HOERBIGER!

The goals of every employee are derived from the objectives of the Executive Board. The Executive Bonus Plan links the performance incentive payment for our senior managers to the performance and behavior goals set out in the Performance Management System. Managers and employees discuss the status The Performance Management System marks the of target achievement at least once a year. first time that an integrated hierarchy of goals The semi-annual reviews in July are used to has been developed for the HOERBIGER Group. address necessary corrective action to achieve Managers and employees alike document their one’s targets. The respective manager may offer targets on a Group-wide online platform. Starting assistance, if necessary. The year-end review fol- with the goals of the Executive Board, all targets lows in January and February of the subsequent in the Group are transparent. This allows every year. At that time, the Board of Directors and manager to examine whether his or her own tar- Executive Board will have set the targets for gets support achievement of the superior’s goals. the next planning period, and the Performance Management process will start a new cycle. 50 People of HOERBIGER 51

Great international careers— ects are presented not only within the Business Unit, but also before the Executive Board on a Motivation, not just for regular basis. entry-level employees In addition to their project work, trainees attend In a performance-oriented company various seminars which HOERBIGER purpose- such as HOERBIGER, individual fully and individually customizes to promote careers are an important topic—not subject-matter, methodical and personal skills. only for young people, but also for seasoned managers. The feedback As part of the program, trainees get to know we received from our employees in executives from different areas and are able to the 2012 “Voice for Excellence” build a comprehensive international network at survey, and then again in 2013, various levels of the company. substantiates this. We offer attractive development and career HOERBIGER regards itself as a options not only for young people, but also “Our trainees are a mirror image company that both encourages talented indi- employees who have collected some job and of the cultural and subject-matter viduals and encourage participations and perfor- leadership experience. diversity in our Group. We offer mance. One example is the International Trainee our trainees interesting positions and are prepared to delegate responsibility Program, which was launched some years ago. One of our key principles is that, first of all, at a very early stage.“ employees bear responsibility for themselves. We encourage our talented employees to broaden Gerhard Wagner The HOERBIGER Trainee their knowledge, grow their skills, and continu- Chief Human Resources Officer and member of the Executive Board Program—Stepping stone ally develop their conduct. We also accept that HOERBIGER Holding AG to international careers personal factors may outweigh the opportunities that we offer as a company when making career The HOERBIGER Trainee Program is intended to choices. attract motivated young people to pursue long- term careers with HOERBIGER. Attractive career opportunities emerge as a result of the continual expansion of our business activi- Over the course of 24 months, the trainees com- ties, but time and again also based on the com- plete project assignments in different Strategic pany’s latest needs or vacated positions. Business Units of the HOERBIGER Group, each lasting approximately six months. To allow par- Consequently, individual career paths at ticipants to gain international experience, the HOERBIGER may vary significantly. We encour- second module takes place in a country outside age our employees to take the leap into another the country of hire. position and area of work. It is certainly pos- sible as well to remain in one position over an During their assignments, trainees assume extended period in order to assume increasing responsibility for concrete operational duties in responsibility and contribute to the company’s appropriate projects. The results of these proj- success as an expert.

International experience: Trainees at HOERBIGER Jan Just, Czech Republic / Nina Hirsch, Austria / Ipeleng Mabusela, South Africa / Vitaly Tatarinov, Russia / Dana Larisa Lazar, Austria / Alan Shao, China. 52 People of HOERBIGER 53

Voice for Excellence

Responsibility provide comprehensive information to best of the degree with which they identify with and leadership— of their knowledge and belief. They explain our company. decisions so that all employees know what The focus is is involved. In 2013, employee engagement measured in on the individual the Group was on average 58 percent. This is It is equally important to harness the a year-over-year improvement of ten percent- Corporate Human Resources has a number of In the medium term, our goal is to fill approxi- HOERBIGER grants each and every knowledge and opinions of our staff in order age points: 58 percent engagement means specifically developed initiatives that support mately 80 percent of all succession-type posi- employee ample decision-making latitude. to continue to develop the HOERBIGER that, statistically, 58 out of 100 employees career planning in the HOERBIGER Group. A tions with individuals who started their careers We think like entrepreneurs. The freedom Group into an attractive employer. would rate their own engagement at 4.5 or key tool in this connection is the Career Path at HOERBIGER or spent a significant portion of with which employees are allowed to inde- Transparency in communication and a cul- higher on an individual assessment scale Guides developed in 2013. Using their careers in the HOERBIGER Group. pendently make decisions motivates us. ture of feedback, embodied every day, are of 1 to 6 and would identify positively with examples from the Business Unit important prerequisites. When we share HOERBIGER with regard to the criteria “Say, Finance & Controlling, Corporate This requires systematic succession planning. The performance of the HOERBIGER Group criticism with each other, we consider this Stay and Strive”. Research & Development, as well Accordingly high is the commitment that our is based on future-oriented technologies, to be a challenge to continue to evolve and as the Service and Production senior managers, with support from Corporate innovations and stable processes. To achieve achieve even better results. In and of itself, this is already a good num- Segments in the Strategic Business Human Resources as a Business Partner, invest lasting success as a company, we need well- ber, as the result of 58 percent places Unit Compression Technology, they in ensuring continuity when filling key positions educated, hard-working and motivated asso- One of the supporting pillars of the feedback engagement at HOERBIGER slightly above demonstrate how individual career in operational management and in our expert ciates. culture in the HOERBIGER Group is the the industry average. We want to improve objectives can be achieved on dif- organizations. worldwide “Voice for Excellence” employee further by 2016 and have set our target for ferent paths at HOERBIGER. They We therefore deal with each other openly survey we launched in 2011. It measures consistent engagement at 65 percent—or allow a productive dialog between The goal of systematic succession planning is and honestly. Transparent communication the level of engagement of all employees even higher. This is the goal we want to work “HOERBIGER has conducted business supervisors and associates about development to create the conditions for our lasting corporate is important to us. Our senior managers worldwide, making it an important indicator toward collectively. internationally for decades. It is our goal opportunities in the Group. success. Another equally important concern is to to remain a global leader in the markets preserve and enhance our HOERBIGER culture. we serve. This requires us to have a strategically aligned team, where all the players know their roles and are fully Succession planning— At present, we have identified approximately competent in their positions.” For a successful future 670 individuals in all Strategic Business Units and Business Divisions who we are confident Dr. Martin Komischke Result Hoerbiger: 58% CEO and Chairman of the Executive Board Succession planning that is focused on the future would have the possibility for bigger roles in the HOERBIGER Holding AG strategic requirements of the Strategic Business HOERBIGER Group in the next few years. To At par Units and Business Divisions is just as important enable this possible career growth, we devised with average for HOERBIGER’s future as the development of customized development programs—including TSR Industry Average: 59% talent and careers. individual training in the target positions. 28% 45% In 2013, the company managed to fill two key below average leadership positions with talented individuals TSR 65% from within our ranks: Thomas Englmann as CEO 30% Neutral of the Strategic Business Unit Drive Technology zone 15% Uncertainty above average and a future member of the Executive Board, TSR and Oliver Gratzel as the new Head of the Serial zone Compressors Business Segment in the Strategic Business Unit Compression Technology. Performance / Destructive best employers zone zone

100%

TSR: Total Shareholder Return in percentage: Sum of total shareholder’s gain (share price growth + dividends paid) divided by previous year’s share price. Source: Aon Hewitt Employee Research Database 54 People of HOERBIGER 55

Both the HOERBIGER Group and all Strategic Always Learn HOERBIGER New Blue— Business Units and Business Divisions invested “The HOERBIGER Way heavily in internal communication in 2013. Knowledge that matters— Always Learn provides access to knowledge trajectory through suitable educational pro- of Leading People” Always Learn and curricular content from the world of grams. To supplement the external and internal HOERBIGER. It enables employees to “New Blue” is a program that familiarizes media of the Group—our website, our Intranet Always Learn is a multimedia learning pursue individual continuing education as By using Always Learn, associates assume employees who were appointed to an interna- HOERBIGER Community, the HOERBIGER and development platform that has been needed—wherever, whenever and in the personal responsibility for a portion of tional management position for the first time with Yearbook and our customer and employee maga- available to the entire workforce since scope they want. their ongoing personal development. HOERBIGER’s management philosophy and the zines HOERBIGER@MOTION—we increased the 2013 Under the umbrella and logo of the HOERBIGER additionally offers all employ- related programs and tools: “The HOERBIGER frequency of our regional and local employee HOERBIGER Campus, this is where all Always Learn has created a modern learning ees a comprehensive classroom learning Way of Leading People.” publications in 2013. facets of company-wide online continuing environment at HOERBIGER that lives up program for training and continuing edu- education come together. to the needs of an internationally operating cation. Specific seminars acquaint up-and-coming top- These include the KT Mirror news- group and supports the company’s growth level managers in specifically tailored seminars letter—which was given a face lift with the business model, the strategy, and the at the beginning of 2014—in the vision and mission of the Group. Strategic Business Unit Compression Technology, the regional newslet- In addition to strategic topics, the seminar ters Open Valve in North America agenda includes practical leadership matters, and Visio Latina in Latin America, such as a detailed introduction into the philoso- as well as the HOERBIGER Aktuell phy of the Performance Management System newsletters in the Drive Technology and the “Rewards for Excellence” bonus system and Automation Technology Business based thereon. Units. “HOERBIGER is in the midst of a cultural transformation which is tied to our increasing globality and An important tool for prospective and seasoned We created a separate news format for our our worldwide operation. We use managers alike is the Quick Blue Calendar com- employees in Production based on our Intranet transparent communication to ensure piled by Corporate Human Resources—a process news. Since the middle of 2013, all company- that our employees understand our flow chart that outlines the most important man- related information published on the Intranet is strategy, are familiar with our goals, and know what makes us successful agement processes over the course of the year. also being communicated via information screens worldwide.” in Production. Ludwig Schönefeld Transparency E-mail newsletters and numerous posts on the Head of Corporate Communications HOERBIGER Holding AG and information— Always Learn learning and development platform by Corporate Human Resources helped to prepare Communication is key for and assist with the Voice for Excellence sur- vey. Additionally in 2013, managers and employ- To perpetuate the success story of HOERBIGER, ees from Corporate Human Resources informed we continue to need highly motivated employees. approximately 300 managers worldwide about the HR strategy and associated new tools. We are convinced that transparent communica- tion is the precondition for motivation and com- mitment. Our objective is therefore to address our associates at all levels of communication: rational, emotional, and always honest and genuine. 56 Group Profile 57

We set STANDARDS

The HOERBIGER brand is synonymous worldwide with performance-defining components in compressors and industrial engines, automobile transmissions, and multifaceted mechanical engineering applications.

“Our employees are specialists when it comes to the development of technological solutions that define the performance of compressors, industrial engines, automotive transmissions and machinery.”

Charles Friess Chief Financial Officer 58 Group Profile 59

PERFORMANCE-DEFINING COMPONENTS

THE CENTER OF THE STRATEGY: nizer systems—friction lining, synchronizer ring Our business model is therefore not centered Our performance claim “Performance counts”, PERFORMANCE-DEFINING and sliding sleeve. around a single industry, but around a perfor- our vision “We set standards”, our mission mance approach that ties all of HOERBIGER’s “EXCELLENCE & Focus”, and the core of our COMPONENTS In the interplay with modern low-viscosity trans- business activities together: we focus on tech- strategy, namely the unique selling propositions mission fluids, innovative HOERBIGER carbon nological products and services based on key of performance-defining components, form the Valves and controllers friction linings ensure the functional reliability components featuring unique selling propositions foundation for implementing our operational for compressors and wear resistance of manual and double- that allow the customers to sustainably increase corporate goals. The technical properties of compressor valves clutch transmissions even under maximum load their company’s value. constitute a decisive variable for the performance conditions. The unique method, developed in- of reciprocating compressors. house, of producing synchronizer rings from MISSION WITH steel sheets that have undergone multiple metal Performance-defining CORPORATE FOCUS: To this day, HOERBIGER compressor valves are forming steps have made HOERBIGER inter- for strategy and culture the performance-defining component in count- nationally the largest independent supplier of SUSTAINABLE STABILITY CRITERIA less reciprocating compressors that are used in synchronizers. The evolution of our company started with the the oil, gas, and process industries, the food steel plate valve for compressors invented by Market Positioning industry, refrigeration and air-conditioning, com- Smart microfluid technology Hanns Hörbiger. In addition to valves, innova- HOERBIGER has the objective of being first or mercial vehicles as well as many other commer- for mechanical engineering tive hydraulic and electric actuators made by second in the niche markets in which it is stra- cial and private applications. Precise metering of fluids and gases is an essen- HOERBIGER today define the performance of tegically represented. Our products and services tial prerequisite for a wide variety of automation rotary equipment for the oil, gas, and process must offer unique selling propositions that clearly Using its cutting-edge knowledge accumulated solutions. industries. distinguish them from the competition. from in-house developments over the decades, HOERBIGER has continually supplemented and Starting from all-hydraulic components, such HOERBIGER synchronizer rings, which are pro- expanded the portfolio of performance-defining as the drive systems of CNC press brakes, duced from steel sheets in a complex process, components for rotary equipment. With modern HOERBIGER has evolved into a leading provider have laid the technological foundation in the capacity control systems for compressors such as of smart microfluid technology. past decade for the series production of efficient the HOERBIGER eHydroCOM system, which at double-clutch transmissions in the automobile present is very successfully withstanding fielding EHAS, TriVAX and ePrAX—electrohydraulic actu- industry. MarkEt TechnologY testing, HOERBIGER continually advances the ators for automated control valves and machine pOSITIONING state of the art, year after year. tools developed by HOERBIGER in the past few In the mechanical and plant engineering indus- years—set a new standard in the mechanical try, HOERBIGER electrohydraulic actuators facili- Synchronizer systems and plant engineering industry. tate entirely new design principles for control and friction linings valves and machine tools. HOERBIGER piezo for the automotive industry As compact motion technology, microfluidic technology is a performance-defining factor The configuration and properties of synchronizer actuators—which were originally developed for not only for industrial applications, such as the systems and friction linings define the shifting the requirements of the automotive industry HOERBIGER Laser Gas Regulator, but also for behavior of manual and double-clutch transmis- demanding maximum density in the smallest medical respirators. sions in millions of automobiles. installation space—are now increasingly pen- etrating non-automotive fields of application. HOERBIGER has a culture of performance. As Profitability Self-Reliance Designing, testing and producing such syn- senior managers and as employees, we take pride chronizer systems are core competencies of HOERBIGER piezo technology proves its worth by in our values, our expertise, our technologies HOERBIGER in Drive Technology. HOERBIGER the thousands, day after day, as a performance- and, above all, in our products and services, is the single-source developer and manufacturer defining key component in positioners of control with which we extensively create added value for the most important components of a synchro- valves used in the process industry. for our customers.

The stability criteria of the Group: Market Positioning, Technology, Self-reliance, and Profitability.

60 Group Profile 61

Technology In order for HOERBIGER to continue to set stan- However, HOERBIGER consistently makes sure HOERBIGER Group, the requirement for this When developing new products and services, dards for products and services in the long run, that relationships with customers and suppliers value is at least 10 percent. An EBIT margin of HOERBIGER focuses on the core competencies we must be a step ahead of the competition, alike are based on several pillars. The Group has more than 10 percent is necessary to maintain of the Strategic Business Units: fluid mechanics both in the development and in the applica- a mandate to remain self-reliant. No less impor- our position in volatile markets that are subject as well as thermo and gas dynamics in compres- tion of our products, with advantageous selling tantly, the corporation must be able to make to increasingly fierce competition. This margin sion and engine technology are as much part of points. business decisions autonomously. An indication supports our internal and external financing and this as are hydraulics, pneumatics and piezo of our financial independence is the Group’s high therefore assures that we can generate growth. technology in automation technology, not forget- Self-reliance equity ratio. Continuous growth creates independence from ting metal forming and fine blanking technology HOERBIGER avoids becoming dependent upon individual customers, suppliers and markets. in drive technology. They also encompass elec- a single customer or supplier. This is not due to Profitability tronics, sensors and software. lack of confidence in our business partners. On Each entity in the HOERBIGER Group must Our high EBIT margin target additionally sup- the contrary: we value reliability and long-term, be able to support itself. Senior managers are ports our efforts to build equity capital so that close relationships based on trust. responsible for the long-term profitability of their HOERBIGER is well-protected during a tempo- entities. The criterion is the EBIT margin, the rary downturn—including for our customers and operating income in proportion to sales. In the business partners.

HOERBIGER PRODUCTS AT A GLANCE HOERBIGER PRODUCTS AT A GLANCE

Strategic Business Unit Compression Technology Core Competencies Strategic Business Unit Drive Technology Core Competencies

Key components for Key components for Key components for n Fluid technology Synchronizer systems for Design and testing of n Tribology reciprocating compressors rotary compressors air brake, refrigeration n Mechanics manual and double-clutch synchronizer systems n Design and testing expertise n Valves n Valves and air-conditioning n Thermo and gas dynamics transmissions n Sophisticated metal forming n Rings and packings n Controls compressors n Metallurgy n State-of-the-art machining n Control and n Reed valves n Polymer technology monitoring systems n Cylinder head units n Control engineering n Electronics n Software Strategic Business Unit Automation Technology Core Competencies Key components for Safety products Services for compressors, industrial gas engines n Explosion relief valves turbines, and industrial gas Smart actuators for Compact Motion Technology Testing and n Hydraulics n Ignition systems and check valves engines control valves for mechanical and plant diagnostic systems n Piezotechnology n Controls and instruments n Spare parts engineering n Electronics n Engine management n Repair n Sensor systems systems n Upgrade and revamp n Software n Fuel valves and actuators n System operation n Control engineering

Business Division Automotive Comfort Systems Core Competencies

Hydraulic comfort systems Pneumatic comfort systems n Hydraulics for passenger cars for commercial vehicles n Pneumatics 62 Group Profile 63

HOERBIGER Foundation Our positioning At present, the three Strategic Business Units Drive Technology HOERBIGER Tectum Family shareholder Compression Technology, Automation Technology The Strategic Business Unit Drive Technology and Drive Technology, and the Automotive is the first choice for the automobile industry Holding AG Christiana Hörbiger Comfort Systems Business Division and their when it comes to synchronizers used in passen- 75 percent 25 percent management bear the responsibility for business ger car. Customers of the Business Unit include operations of the HOERBIGER Group. internationally operating, leading transmission Shareholders manufacturers as well as major brands in the Compression Technology automotive industry. The Strategic Business Unit Compression HOERBIGER Holding AG Technology is the backbone of the Group. Its Automation Technology As of 4/1/2014 success is based on products and services that The Strategic Business Unit Automation offer high customer value based upon the com- Technology focuses on customer-oriented solu- The HOERBIGER Foundation protects the entrepreneurial heritage and ensures stability and self-reliance as well as a bination of innovative products, sophisticated tions based on powerful, simple and singularly future-oriented corporate strategy that is geared toward profitable growth. engineering and a worldwide presence. reliable actuators for customers in the oil, gas and process industries, in the energy field as well For many years, Compression Technology has as in the mechanical engineering and special- concentrated on compressor-related components, purpose machinery industry. systems and services. In addition, this Business Long-term orientation, Closely intertwined: Unit has very successfully developed its busi- Automotive Comfort Systems ness with safety products, and relief and check The Automotive Comfort Systems Business sustainability, stability and Strategy and operational valves. For at least a decade, the focus has been Division is a worldwide market leader for continuity implementation broadened to include gas engines as well as other hydraulic actuators used in convertible tops. rotary equipment, in particular gas turbines. The portfolio also includes pneumatic gearshift With the HOERBIGER Foundation in Zug, The Board of Directors has the managerial, orga- support systems for commercial vehicles in the Switzerland, the Group has a sound basis, which nizational, supervisory, and financial responsibili- In addition to the OEM business, where compo- Transmission Comfort Business Segment. The is marked by long-term orientation, sustainability, ties for HOERBIGER Holding AG. It is composed nents are supplied directly to compressor and Business Division was spun off the Strategic stability, and continuity. of members of the Board of Trustees, former engine manufacturers, service and related activi- Business Unit Automation Technology in 2008. members of the HOERBIGER Executive Board ties have become the second mainstay of the The Business Division has since been managed At 75 percent, the majority of shares and independent advisors associated with the Strategic Business Unit Compression Technology. by the Executive Board. of HOERBIGER Holding AG are held by Group. The Board of Directors is elected as part HOERBIGER Tectum Holding AG, Zug, an inter- of the Annual General Meeting of HOERBIGER mediate holding company that is entirely depen- Holding AG at the proposal of the HOERBIGER dent on the HOERBIGER Foundation. The Board Foundation. of Directors of HOERBIGER Tectum Holding AG Board of directors is identical to the Board of Trustees, which is the The Executive Board bears responsibility for Dr. Marcus Flubacher, President / Dr. Gerd Unterburg, Vice President Dr. Rudolf Huber / Dr. Manfred Reichl / Egbert Appel executive committee and supports and manages assuring that every product and service that is the development of the company. developed, as well as all new business mod- els, fit our strategic approach, comply with our The Foundation earmarks the majority of corpo- Excellence goal, and satisfy the HOERBIGER Executive Board rate profits generated by the HOERBIGER Group stability criteria. Dr. Martin Komischke, Chairman for the company. It is the primary objective of Charles Friess / Norbert Gauß / Johann Hipfl / Dr. Siegmar Schlagau / Gerhard Wagner the Foundation to preserve independence of the Our corporate goals are implemented operation- company and to continually develop and expand ally in the Strategic Business Units and Business the Group. Divisions under the managerial and supervisory responsibility of the Executive Board. The CEOs The HOERBIGER Foundation uses its own funds of the Strategic Business Units and Heads of the predominantly to support research in the entities Business Divisions are responsible for ensuring Strategic Business Unit Strategic Business Unit Strategic Business Unit Business Division Corporate Corporate that make up the HOERBIGER Group. Initiatives the profitable development of the business and Compression Technology Drive Technology Automation Technology Automotive Comfort Systems Finance / Controlling Human Resources that are directed at promoting employee develop- for continually developing innovative products Johann Hipfl Thomas Englmann Norbert Gauß Dr. Martin Komischke Charles Friess Gerhard Wagner interim ment are an equally important concern. and services.

As of 4/1/2014 64 Strategic Business Unit Compression Technology 65

WE MAKe TECHNOLOGY WORK

The Strategic Business Unit Compression Technology remains the strongest performer in the HOERBIGER Group. Posting sales of 572.0 million euros, the performance in 2013 was virtually unchanged compared to the previous year’s figure of 574.0 million euros.

“We create high customer value by making our customers’ equipment safer, more efficient and environmentally sound with our technology and our application expertise.”

Johann Hipfl CEO of the Strategic Business Unit Compression Technology 66 Strategic Business Unit Compression Technology 67

Strategic Business Unit Compression Technology Johann Hipfl

Uncovering potential— high-speed compressors in the market has played OEM Division Service Division Production Division with attractive innovations a role in keeping alternative technologies, such as that of turbo compressors, from inhibiting the wide- As of 4/1/2014 With the invention of the low-mass steel plate spread success of the reciprocating compressor. valve, Hanns Hörbiger revolutionized gas com- pression in 1895 and facilitated the worldwide As a result of continually pushing ahead with Strategic Business Unit Compression Technology acceptance of reciprocating compressor tech- development efforts over decades, HOERBIGER nology. has remained a leading innovator in compres- sion technology worldwide. All of HOERBIGER’s The Strategic Business Unit In its goal to provide new technologies for In the 1960s, HOERBIGER valve technology innovations primarily focus on the performance- Compression Technology— the benefit of the customer, the Strategic enabled the development of high-speed recipro- defining components of compressors: valves, Business Unit Compression Technology relies cating compressors. The unwaning success of these controllers and sealing systems. The strong force in the on the effective and interdisciplinary inter- HOERBIGER Group national cooperation of its employees as well as the technical capabilities it has developed The Strategic Business Unit Compression over the decades. The Strategic Business Unit HOERBIGER steel plate valve Technology is based on a global matrix organi- Compression Technology is distinguished by zation that is composed of four pillars: its knowledge of customer needs, acquired over many years in the OEM and Service busi- With his development of a novel steel plate OEM Division ness, as well as the ability to fruitfully link this valve in 1895, Hanns Hörbiger laid the founda- Compressor Solutions, Engine Solutions and know-how of the market to technological tion for the present HOERBIGER Group. It fur- Serial Compressors Business Segments expertise. thered the evolution of blast furnace technology and prepared the way for piezo-chemistry. The Service Division The worldwide network encompassing 12 produc- HOERBIGER steel plate valve was therefore a Area Managements Europe West, Europe East, tion plants as well as approximately 90 service key technology for industrial development at the Middle East/Africa, USA, Canada West, Latin locations allows the Strategic Business Unit beginning of the 20th century—a new industrial America and Asia Compression Technology to optimally serve its standard. customers around the globe. Production Division Today, it is modern HOERBIGER technologies 12 production plants worldwide Its organization into the Business Segments that set standards in industry. They are suc- Compressor Solutions, Engine Solutions and cessful in the market because their unique HOERBIGER steel plate valve, 1895: The valve plate opens when the gas pressure Support Functions Serial Compressors affords the OEM Division selling propositions are clearly superior other is high enough, and closes when the spring Controlling, Process Management and Systems, high efficiency in sales and distribution. solutions. pressure is higher than the gas pressure. Human Resources, Innovation / Business Development and Marketing. The know-how gathered from the development of innovative components and systems for OEM manufacturers forms the basis for high-quality Performance-defining Solutions services for compressor and engine operators. for Engines and Compressors Conversely, the knowledge acquired in the end Durable and fiber reinforced polymer material developed by The Strategic Business Unit Compression customer business and the capability to apply HOERBIGER’s Research Department. Technology forms the backbone of the innovative solutions to customer problems are extremely efficient: HOERBIGER Group. It pursues the strategic reflected in progressive and particularly efficient HOERBIGER CP and XP valves As with the plate valve, the valve plate is guided objective of setting standards with performance- products. These assist OEM manufacturers with by a ring. The basic idea of the double cone defining solutions for the engine and compressor developing and offering even more powerful The latest innovation is the profiled plate valve, sealing element is adopted from ring valves. industry. equipment. combining the simple design of the traditional plate valve with the high sealing action and effi- The expansion properties of the carbon fiber An essential driver is the aim to render technol- Excellence is the performance goal that ties all ciency of the ring valve. reinforced polymer material of the valve ogy usable for the customer, support custom- the services together which HOERBIGER pro- plate under thermal stress are virtually identi- ers from development to use of a product, and vides for customers in the Strategic Business The core of the innovation is the profiled valve cal to that of steel, which is used for the valve deliver excellent performance through it all. Unit Compression Technology. plate, which is integrally molded from a carbon seat. 68 Strategic Business Unit Compression Technology 69

cp valve

The HOERBIGER CP valve is presently the The CP valve is distinguished by maximum latest state of the art in valve produc- efficiency and durability in tough everyday tion at HOERBIGER. The profiled plate operation. When used to retrofit older compres- valve was launched in 2011. Fields of sors, the valve’s flow-optimized gas flow man- application include the chemical, pet- agement compared to the traditional plate valve rochemical and pharmaceutical indus- increases the cost efficiency of systems many tries, the medical field as well as the times over. energy sector. The profiled valve plate made of carbon fiber Whenever it comes to reinforced polymer material guarantees low the compression of maintenance costs and high availability. The light gases, such valve plate rarely fails when regular mainte- as natural gas, or nance intervals are observed. Valve plate break- technical gases, age as well as secondary damage to the com- the CP valve is the pressor caused by metal fragments are virtually right choice. The CP eliminated. valve can be found in compressors that are In addition to the valve plate, specially developed used for natural gas springs are another innovative feature of the CP extraction, transport valve. They prevent the valve plate from rotating, and storage, in com- and even with high dynamic forces ensure active pressors for the liquefaction of LNG, control of the compressor by control systems ethylene, propylene or propane, and in air such as HOERBIGER HydroCOM, which uses an compressors for the production of PET bottles. unloader to open and close the valve.

HOERBIGER brought the first pro- this causes the valve plate to consistently adapt filed plate valve—the CP valve—to to the entire contour of the valve seat, despite market in 2011. It features valve its complex shape. plates made of carbon fiber rein- forced polymer and has since been The most recent variant of the profiled plate valve used with rising market share for is the XP valve. Its design follows the same prin- “The latest variant of the CP valve demanding applications with high-speed com- ciples as the CP valve, except that it is intended is produced from a valve plate that pressors. for use in compressors with extremely high power is molded in one piece from density. high-performance PEEK. This is state of the art for natural gas applications.” The special design of the injection mold precisely orients the carbon fibers embedded in the poly- Initial prototypes were produced in 2012 and are Dr. Gunther Machu mer material. When exposed to thermal stress, presently undergoing testing in pilot applications. Head of Global Product Management / Advanced Engineering Compressor Solutions HOERBIGER Ventilwerke GmbH & Co. KG

Their valves set standards: Marian Janko, Team Leader Material Development / Dr. Gunther Machu, Head of Global Product Management / Dr. Bernhard Spiegl, Head of Research & Development and Technology / Martin Lagler, Head of R&D Workshop / Markus Testori, Team Leader Valve Development. 70 Strategic Business Unit Compression Technology 71

xp valve

Millions in savings— Another benefit of the XP valve is the flow-opti- With a single valve mized design of the sealing elements, reducing the force that must be exerted for the valve to The CE valve is one of HOERBIGER’s most suc- control the compressor flow rate. This results in cessful valve designs. Customers from the chemi- a high synergy effect when using active control Stepless electrical control: The objective of developing the cal and process industries, refineries and the systems, since less force must be applied for HOERBIGER eHydroCOM system HOERBIGER eHydroCOM system, energy sector value its reliability and efficiency control and the design of these systems can be an all-electric actuator, is to pro- as well as the long service life. accordingly more compact and lower in energy Another significant innovation of the Strategic vide customers with the ease of consumption. Business Unit Compression Technology is the use of a purely electrical solution The CE valve continues to set standards in HOERBIGER eHydroCOM system. It follows the for actively controlling reciprocat- HOERBIGER’s markets. And yet, more recent The HOERBIGER eHydroCOM is a control sys- tradition of the HOERBIGER HydroCOM system, ing compressors, in addition to the developments in compressor construction neces- tem that ideally complements the advantages which was launched with great success in 1996. former HOERBIGER HydroCOM system. “With the eHydroCOM control system, sitate even more efficient valves. of the XP valve. Practical testing conducted we managed to implement a technologi- by HOERBIGER in 2013 with XP valves and Technological progress, along with higher cost Such active control systems have been tried and cally complex solution in the form of an easy-to-use plug & play system.” With the profiled plate valve, a simultaneously installed eHydroCOM system consciousness and environmental awareness, at tested primarily in applications with frequent HOERBIGER has managed to make show that it is possible to achieve efficiency the end of the 90s created the conditions that load changes. The performance spectrum of the Dr. Peter Dolovai an innovative valve generation avail- increases valued at up to a quarter million euros would allow the shortcomings of then pneumatic HOERBIGER eHydroCOM is perfectly matched Team Leader Development Mechatronics able to customers which offers new annually for compressors with high power input. reverse flow control units to be overcome with a to the equally innovative profiled plate valves Research & Development Compression Technology competitive advantages. The XP Approximately 100,000 euros can be directly fundamental innovation. made by HOERBIGER, i.e. the CP and XP valves. HOERBIGER Ventilwerke GmbH & Co. KG valve, which was specifically devel- attributed to the performance of the XP valve. oped for use in high-performance A young team of technicians capitalized on compressors for the process gas HOERBIGER’s cutting-edge knowledge in order Maintaining potential— industry, manages to boost the to use Common Rail injection technology— With continual renewal efficiency previously attained with which had been developed at the time for die- “The XP valve combines numerous the CE valve by yet another 20 percent. sel engines—and extremely fast high-pressure Innovations such as the HOERBIGER CP and technological innovations in valve design. Additionally, it comes with suffi- hydraulics to come up with an entirely new way XP valves or the HOERBIGER eHydroCOM are We are certain that this new valve will ciently long-term patent, tech- for crank angle-controlled, electronic reverse flagship products of the Strategic Business Unit allow us to further strengthen and expand our market position when it comes to nology and piracy protection. flow control. Compression Technology. They are representative demanding process gas applications.” of the ingenuity of the HOERBIGER Due to the robust design, The development of the control system referred brand. Dr. Bernhard Spiegl high efficiency, and valve to as HOERBIGER HydroCOM ushered in the age Head of Research & Development and Technology Compressor Solutions cross-sections made of mechatronics for the Strategic Business Unit In addition to fundamentally new HOERBIGER Kompressortechnik Holding GmbH possible as a result of Compression Technology. In addition to tradi- technological innovations, the con- the innovative profiled tional mechanical engineering disciplines, elec- tinual advancement of proven tech- plate valves, it is pos- tronics and software have since supplemented nologies forms an important building sible to manage the the portfolio of HOERBIGER key technologies. block in HOERBIGER’s success. amounts of gas common today with only one pressure HydroCOM’s extreme reliability, high energy One example of the goal to be suc- valve and suction valve each savings potential and diversity have stimulated cessful with quality components in on the cover and crankcase sides growth for the reciprocating compressor that the fiercely competitive market of inexpensive “The eHydroCOM control system of the compressor. Compared to the has lasted to this day. Many market players had valves is the HOERBIGER RN valve portfolio, allows our customers to quickly four, and in some instances even six, valves prematurely written off the reciprocating com- which was newly compiled based on proven plate increase their value generation, even for compressors with lower power.” customarily used today, this creates significant pressor as “outdated technology.” The 1000th valve technology. The intent of launching the RN cost advantages in terms of compressor produc- HydroCOM system was installed in Japan in valves was to save costs through standardization Klaus Stachel tion and maintenance for OEM manufacturers 2013. and improve competitiveness. Global Product Manager and users. Compressor Mechatronics HOERBIGER Ventilwerke GmbH & Co. KG 72 Strategic Business Unit Compression Technology 73

HOERBIGER eHydroCOM

All under control The HOERBIGER eHydroCOM was unveiled for the first time at the EFRC Conference in With eHydroCOM, HOERBIGER sustains the Düsseldorf in September 2012. Initial field innovation and technology leadership in the field testing started in May 2012. As anticipated, of reverse flow control systems. experiences with operation have been positive.

The HOERBIGER eHydroCOM system consists of The HOERBIGER eHydroCOM control system four main components: the eHydroCOM actua- was developed for use with extremely flam- tor, which actuates the compressor valves and mable gases such as hydrogen in potentially is therefore installed directly at the compressor; explosive zones. It therefore satisfies maximum the ePU power unit for controlling as many as requirements in regard to functionality, safety four actuators; the eCIU compressor interface; and explosion protection, as well as stability and a specially devised wiring system. and reliability.

HOERBIGER designed the eHydroCOM as a The market launch of the HOERBIGER plug & play system. Installations costs for the eHydroCOM is scheduled to take place in mul- eHydroCOM are far below the previous standard. tiple stages. The eHydroCOM will be available The acquisition and installation costs alone pro- for sale at the end of 2014 for applications vide attractive payback periods, especially for with lifting forces in the medium range, which customers who use small compressors in the have already been extensively validated in field 500 to 1000 kilowatt power range. testing.

Quality at an attractive price— high degree of standardization, and high vol- HOERBIGER RN valves umes. HOERBIGER optimized the model vari- In principle, the RN valves are based on the ety of the traditional R valve for these appli- proven design of the HOERBIGER R valve cations and lowered manufacturing costs as with metallic sealing elements. Industrial air part of the standardization process. Customers applications form the largest market for these in the highly competitive market environ- valves. The compressors used in this market ment of industrial air compressors benefit segment, which are typically high-speed units, from HOERBIGER quality at a very attractive stand out with their compact construction, price.

All under control—HOERBIGER eHydroCOM development team: Christian Kernbichler, Designer / Stefan Kottre, Product Expert / Dominik Ratschka, Lab Technician / Dr. Peter Dolovai, Team Leader / Gernot Bischelmaier, Application Engineer. 74 Strategic Business Unit Compression Technology 75

HOERBIGER OFD oil wiper ring Unleashing potential— agreements over the course of 2013. With new business ideas At the end of the year, a total of Advantageously remains contained in the crankcase. The metal 340 units were in operation. The using physical wiper rings predominantly used in the past have Wellhead Compression: majority of these compressor units phenomena— weak points, frequently resulting in massive loss New strength for mature wells are presently located in Argentina, HOERBIGER OFD of oil, damage to the piston rod, as well as a lack Like hardly any other initiative before it, the in particular in Loma La Lata, the oil wiper rings of reliability. Wellhead Compression program initiated by country’s largest gas field. “We are very proud that the Wellhead The HOERBIGER HOERBIGER in Latin America has evolved from Compression Initiative, after having been OFD oil wiper ring is While conventional products scrape the lubri- a local business idea into a markedly successful The success of the Wellhead Compression so successful for us in Latin America, is now also meeting with such great interest a remarkable inno- cating oil off the piston rod with sharp-edged business model. Initiative in Latin America inspired HOERBIGER in Eastern Europe.” vation for reciprocat- rings, the OFD oil wiper ring takes advantage of to expand the new business model to other ing compressors. a physical mechanism of action: the elastohydro- The need to continue production from matur- important gas regions. Daniel Vazquez dynamic effect. As a result, oil is efficiently and ing fields combined with high oil and gas Business Development Manager HOERBIGER Service Latin America, Inc. In reciprocating com- gently scraped off the piston rod and recirculated prices have been key drivers of the Wellhead After having successfully sold 20 pressors, oil wiper rings into the crankcase—without causing wear on Compression Initiative. The idea behind the wellhead compressors in Romania ensure that lubricating oil the piston rod. Wellhead Compression Initiative: HOERBIGER in 2012, the HOERBIGER Executive leases mobile compressors to oil and gas field Board decided to actively market the operators. With the assistance of the leased com- successful Latin American leasing pressor units, HOERBIGER customers are able model to additional customers in to economically extract residual amounts from Eastern Europe. largely depleted fields for considerably longer periods—and consequently profitably operate the oil and gas fields for far longer periods than in the past.

“Our technology helps our customers An idea from Latin America not only to boost the production, but on its way to Eastern Europe also to increase energy efficiency and Higher vertical integration— greatly improved. The HOERBIGER GTI+ At the end of 2012, some 200 wellhead com- environmental friendliness in the oil and GTI+ Bi-Fuel technology Bi-Fuel system targets applications in the pression units were leased to customers in the gas industry.”

For the growing industrial diesel engine mar- power generation field, where the generator oil and gas industry in Latin America alone. Dmitry Kafidov ket, the Altronic brand—which was acquired experiences large, sudden and frequent load HOERBIGER entered into additional leasing Area Manager Compression Technology by the Engine Solutions Business swings. Service EAST, HOERBIGER Žandov s.r.o. Segment in 2009—introduced the GTI+ Bi-Fuel system in 2013. This One field of application where these swings from latest addition to the GTI product idle to full load are common are generators that line allows industrial diesel engines are used to power drilling rigs in the extraction Wellhead Compression Unit to be operated cost-effectively and of shale gas in North America. These rigs con- efficiently using diesel fuel as well sume high volumes of fuel. With the support of as a mixture of diesel and gaseous the GTI+ Bi-Fuel system, operators can achieve Protected from ice and snow: fuels. Up to 70 percent of the diesel tremendous cost savings in mixed diesel-gas Wellhead Compression units fuel requirement can be replaced by operation. for Russia and Kazakhstan natural gas. Assisted by the know-how of the experienced “In addition to our innovative USM—A simple idea Wellhead Compression teams from Latin BCD ring, the OFD oil wiper ring is Under the HOERBIGER umbrella, the share of that offers high customer value America, five wellhead compression units were an important building block for rounding vertical integration of the GTI+ Bi-Fuel tech- Another innovation for industrial engines that was prepared in 2013 for use in Russia and another out our portfolio of performance-defining rings and packings.” nology was considerably increased through new developed in 2013 is the HOERBIGER Universal twelve for use in Kazakhstan as part of a pilot components that were developed and manu- Sensor Module of the Altronic brand. This mod- project. In anticipation of the tough ambient Christian Hold factured within the Engine Solutions Business ule allows analog signals of the sensors that are conditions, the compressors were installed in Global Product Manager Rings & Packings Segment. installed on large industrial engines to be pooled, winterized containers. The first wellhead com- HOERBIGER Ventilwerke GmbH & Co. KG digitized and forwarded to the central control pression units were put into operation in Russia A number of customized products were panel using only one bus line. This consider- around the middle of 2013 and have so far fully designed and implemented as part of the GTI+ ably reduces the installation effort compared lived up to the customer’s expectations. Bi-Fuel system development process, with the to the previously customary analog wiring of all result that controllability of the system was terminals and sensors. 76 Strategic Business Unit Compression Technology 77

Strategic Business Unit growth momentum with new developments, Process gas— Industrial air— such as the CP and XP valves, the eHydroCOM Excess worldwide capacities Strong competitive Compression Technology— control system, as well as compressor packings While HOERBIGER’s OEM business in North pressure On a good course featuring innovative components such as the OFD America benefits from the natural gas segment The industrial air segment has wiper ring. These will contribute to HOERBIGER and continues to expand, sales growth in the seen an increasing concentration in an unstable increasing its market share among suppliers of process gas segment is a challenge. of OEM manufacturers in the past years. As a “In the Compressor Solutions segment the oil, gas, and process industries under the long-standing partner to the customers who flour- we work closely with our customers economic environment providing high level support and state prevailing economic conditions. Given the likely unlimited availability of shale ish in this business segment, HOERBIGER, and of the art technology. The continued The Strategic Business Unit Compression gas for the coming years, the United States is the Compressor Solutions Business Segment in growth path will be secured through Technology continued to be on a good course Natural Gas— evolving from an energy importer to an energy particular, was able to participate in this trend innovation and new business initiatives.” in 2013 in an unstable economic environment. Unabated growth exporter. This will prompt additional investments and increase the market share in the component In the traditional natural gas business, long-term in new refineries and chemical plants, leading business for industrial air compressors. Claus Andreasson Head of OEM Compressor Solutions The service business in North America, which future growth of the Strategic Business Unit to excess capacities on the global process gas HOERBIGER Kompressortechnik Holding GmbH came under considerable pressure in 2012, Compression Technology will continue to come market, primarily in Europe, but potentially in Engine Solutions Business Segment was able to regain lost ground and from two megatrends. Asia as well. The expectations that HOERBIGER had in the has since seen a sustained recov- development of the Engine Solutions Business ery phase. The North American OEM On the one hand, worldwide economic growth is It is also to be expected that demand for pet- Segment have not yet been entirely met: the business also achieved good sales prompting a continual rise in demand for energy. rochemical and chemical products will weaken acquisition of Altronic Inc., Girard, Ohio, in 2013. However, a good portion on the Asian markets, which were booming in USA,—a worldwide leading manufacturer of of this success was offset at the On the other hand, the share of coal, crude oil the past. In addition to government interven- ignition systems for industrial gas and diesel corporate level by the strong euro. and nuclear energy as primary global energy tion on growth in China, increasing saturation engines—a little over five years ago virtually sources will decrease. In spite of wind and of demand in other Asian markets and weak coincided with the onset of global stagnation Since HOERBIGER consolidates hydroelectric power, solar energy and renewable conditions of the economies in some emerging of industrial large engine sales, all sales volumes in euros, foreign resources, natural gas is considered to be most countries contribute to this trend. Utilization of which has lasted to this day. In the entities whose local currency lost important resource of the future. the production capacity installed in the process coming years as well, this market is “For HOERBIGER, the natural gas in value over the euro in 2013 were not able industry is accordingly lower. expected to develop at a slower rate. market in the USA is an important to achieve the sales targets set for 2013. In At present, the business successes that growth market. We are excellently addition to North America, the appreciation of HOERBIGER is achieving in the Compressor In Europe, the process gas business is addition- Contrary to what in retrospect was represented there.“ the euro particularly affected Venezuela and Solutions Business Segment are primarily sus- ally adversely affected by the withdrawal of new a very optimistic assessment of the Dr. Josef Leitner Argentina, but also Japan and Poland. tained by the OEM business in North America. projects and resources by globally operating large industrial engines market, the Global Head of Strategic Marketing Unlike all other regional economic areas and companies. The reason that is cited time and actual volume of the OEM markets Compression Technology & Controlling OEM A continued weak economic environment is all the remaining globally operating business again is regional economic policies, which tend has not expanded. Some sales mar- HOERBIGER Kompressortechnik Holding GmbH expected for 2014. In the medium and long run, sectors, the oil and gas industry was booming to be restrictive in many countries. An added kets even recorded declining reve- however, the Strategic Business Unit is antici- in North America in 2013—driven by invest- factor is that the global players in the energy nue. In 2013, nearly all major manufacturers of “With key development projects, pating sustained growth again in all Business ments of the pertinent sectors of industry and business are presently channeling their invest- industrial engines issued profit warnings. we were able to set the course in 2013 for a successful future of the Segments, starting in early 2015. independent investors in new extraction systems ments specifically to the USA in order to take Engine Solutions Business Segment and pipelines for shale oil and shale gas. advantage of the benefits resulting from drasti- This trend is driven by continued significant with engine manufacturers.” cally decreased energy prices as a consequence free transport capacities of ocean-going ves- This contrasts with no significant revitalization of shale gas extraction. sels. While demand for new freighters is up, Jens Hartrampf OEM Division Head of Engine Solutions of the European economy as of yet from shale the initial signs of recovery nonetheless did HOERBIGER Kompressortechnik Holding GmbH Compressor Solutions gas deposits. Despite increasingly positive sig- not result in any noteworthy new order volumes Business Segment nals from the European Union, political reserva- in 2013. In the Compressor Solutions Business Segment, tions and local resistance still prevail in several HOERBIGER hopes to generate considerable European countries. 78 Strategic Business Unit Compression Technology 79

HOERBIGER EquiCOM

Strong performance As of 2013, the HOERBIGER EquiCOM system with lean gases— has filled this key void in the portfolio of the Engine Solutions Segment. HOERBIGER EquiCOM gas mixer The EquiCOM gas mixer can handle natural The goal of the Engine Solutions Business gas just as well as what are known as lean Segment in the future is to provide customers gases, such as biogas, mine gas, wood gas or from the engine industry with all performance- sludge gases from sewage treatment plants. defining components for gas-powered The EquiCOM gas mixer ideally complements engines. The missing the HOERBIGER VariSPARK ignition systems, piece in this puz- especially with ignitable lean gas mixtures. By zle until now was a combining the two systems, gas engines can be suitable gas mixer. operated economically even with lean gases— despite their calorific value being up to 30 per- cent lower than natural gas.

HOERBIGER will offer the new gas mixer initially as EQ 15 for engines with output of 50 to 250 kilowatts and EQ 30 for engines with output of 250 to 600 kilowatts, with the EQ 60 variant for engines with output of up to one megawatt completing the portfolio.

Engine manufacturers have since started to Simultaneously with this development on the invest again in the development of industrial industrial engine market, there is a strong trend engines, and the market is expected to gain in toward the use of existing diesel engines in mixed importance in the future. diesel-gas operation or in gas operation alone.

Start of production of the new engine generation HOERBIGER offers suitable solutions both for is scheduled for 2016/17. Innovative compo- dual-fuel applications in the OEM business and nents made by HOERBIGER will play a role in for Bi-Fuel applications in the after market busi- ensuring that these engines satisfy the latest ness. The Engine Solutions Business Segment emissions requirements while boosting efficiency. will be able to participate in the switch from

Industrial engine specialists: Gerhard Kogler, EquiCOM Head of Development / Gerhard Ranegger, Product Manager / Martin Könczöl, Head of Design / Bernhard Köcher, Development Engineer. 80 Strategic Business Unit Compression Technology 81

oil to natural gas as the primary fuel for large come from Asia in the next years. China’s major Service Division In an effort to respond even bet- engines with the modular DriveCOM engine con- engine manufacturers plan to bring their own ter to the customers’ needs in the trol system, the portfolio of gas metering valves, new developments to market. These are intended Competition in the Service Division of the future, HOERBIGER will internally control units such as ActuCOM and EquiCOM, to supersede engine designs that are presently Strategic Business Unit Compression Technology optimize the interfaces between and the innovative ignition systems of the still produced under licenses from Europe and remains fierce. OEM manufacturers, packagers Service, Product Management and VariSPARK system—such as the CPU95EVS igni- the United States, but are outdated in terms of and fleet operators, manufacturers of compo- Production as part of the new service tion control unit unveiled in 2013—as well as their technology. nents, as well as numerous small and medium- strategy: going forward, Product Management “In Service, we see great the GTI+ Bi-Fuel system, which was introduced sized third party businesses specialized in the and Service will work hand-in-hand when it opportunities for HOERBIGER to in the after market in 2013 as well. To benefit from this attractive growth potential, maintenance and service of compressors, engines comes to developing innovations. The intent is grow. Speed of achieving this growth is my primary goal.” HOERBIGER and L’Orange GmbH, Stuttgart, and turbines share the attractive service market to better utilize the knowledge of the service staff Analysts and market players anticipate that the Germany, a member of the Tognum Group, around the globe. in new developments and enhancements—after Stuart Broadley market environment will develop very favorably agreed on January 1, 2013 to a joint ven- all, they are the link to the end user. Head of Service again after 2016 as a result of the introduction ture for diesel and dual-fuel engines on the Growth in this fiercely competitive market con- HOERBIGER Kompressortechnik Holding GmbH of more stringent environmental regulations and Asian market. L’Orange is contributing its exper- sisting of a large number of players is possible USA and Canada: the attendant upgrade of industrial large engines. tise as a diesel injection specialist to the col- primarily by sustainably increasing the level of Good progress with new structures laboration, with HOERBIGER supplying Ported value generation. Companies engaged in service, and broadened service offerings Additional momentum for the OEM business Fuel Injector valves, actuators and engine control such as HOERBIGER, must offer their customers News coming from the HOERBIGER service busi- of the Engine Solutions Business Segment will systems. clearly differentiated and added-value products ness in the United States and Canada in 2013 and services compared to their competitors, was good. at the same high quality, if they are to grow profitably. The redirection of considerable investments of the gas industry into new plants for shale gas and From the classic valve business shale oil production, but also historical struc- to the premium project business tural weaknesses in the internal organization With this in mind, HOERBIGER has fundamen- had resulted in sliding sales in HOERBIGER’s Serial Compressors On track for growth with tally revised the strategic objective for the service service organization in North America in 2011 Business Segment refrigeration and business. Starting from the excellent reputation and 2012. The Serial Compressors Business Segment air-conditioning technology that HOERBIGER has acquired over decades with specializes in reed valves and cylinder head The Serial Compressors Business Segment has traditional services, the goal of the new growth HOERBIGER responded with units for small compressors used in refrigera- also continually positioned itself as a success- strategy is to enhance the service portfolio toward comprehensive restructuring and tion and air-conditioning technol- ful worldwide partner to the globally operating a value-creating project business—with long-term realignment of the service activi- ogy as well as for brake air compres- OEM manufacturers in the refrigeration and air- contracts, value-adding overhauls, equipment ties of the Strategic Business Unit sors. Production locations include conditioning compressor component segment. upgrades, as well as consulting and problem- Compression Technology in North Schongau in Germany, Thane in The acquisition of Gala Precision Technology solving expertise bringing maximum benefit for America in 2012 and 2013. India, and Changzhou in China. Private Ltd. in Thane, India, in 2009 expedited the customer. the global move into the market segment of fully After a very difficult year 2012 with Progressive technology hermetic compressor valve applications. Initial new service offerings, notably REE Audits extensive losses, the restructuring and new long-term as well as technologies directed at the upgrade program launched at the beginning agreements Today, HOERBIGER is one of the leading and revamp of reciprocating compressors, were of 2013 in Canada resulted in significant recov- “In the REE audit, we merge Over the last few years, the Business manufacturers of compressor valves for house- launched very successfully in 2013. ery and new growth. The employees are commit- our engineering know-how with Segment had come under pressure, hold refrigeration appliances. The high demand ted to working closely together to maintain the our customers’ desire to operate “With our valves and systems, initially as a result of the general crisis in the for refrigeration and air-conditioning technol- The aftermarket business gains considerable compressors reliably and efficiently. recaptured market share long term. we are operating in a highly automobile industry, and later again in connec- ogy in China has allowed the company to grow momentum from upgrade projects for large Our expertise, our products and our solutions make us a preferred competitive, international market tion with sustained investment restraint in the together with the customers and increase its engines. The order books of HOERBIGER environment. Cost leadership and partner for many customers when superior quality distinguish us from commercial vehicle market. All the more impor- market share. Engineering Services in Houston, Texas, USA, it comes to the implementation of the competition and create appreciable tant in 2013 was therefore the conclusion of a were well-filled in 2013 and standardized upgrades and revamps.” added value for our customers.” long-term agreement in effect until 2015 with a upgrade packages have been successfully intro- Markus Digruber major worldwide supplier of brake air compres- duced in the market, supporting business devel- Oliver Gratzel Head of Program Management Service Division Head of Serial Compressors Business Segment sors for commercial vehicles. opment efforts outside of North America. In close HOERBIGER Kompressortechnik Holding GmbH in the Strategic Business Unit Compression cooperation between the Service Division and the Technology and Managing Director of Engine Solutions Business Segment, additional HOERBIGER Kompressortechnik Schongau GmbH, market potential was tapped. since September 2013 82 Strategic Business Unit Compression Technology 83

Premium services for the HOERBIGER REE Audit shale gas business Thanks to its repositioning, HOERBIGER is well-prepared for the rising demand for services Compressors on the index— expected over the coming years: it will not be Comparisons to the long before the new plants installed as part of the shale gas business will reach their first mainte- industry standard nance intervals and the corresponding attractive new service contracts will be placed. With the REE initiative—(Reliability, Efficiency and Environmental Soundness)—HOERBIGER Until then, HOERBIGER will considerably expand provides the customers with top-notch expertise the necessary performance spectrum in the entire to improve their compressors’ long-term reliabil- service network and be able to offer premium ser- ity, efficiency and environmental compliance. vices. In particular in United States and Canada, Bringing experts from the customer together significant market potential for reciprocating with HOERBIGER experts delivers high customer compressors remains to be tapped with the use value as the REE audit supports the customers in of modern, performance-defining components. the continuous optimization of their compressors. A large number of compressors that are used in natural gas production and transport still do not A key component of a standardized audit report meet the performance criteria that elsewhere— is the benchmark index. It helps the customer thanks to HOERBIGER technology—are consid- assess where his compressor ranks against the ered to be the standard for reliability, efficiency industry standard. HOERBIGER also provides and environmental compatibility. detailed recommendations to show where the performance of the compressor can be improved Services for the to enhance the REE rating. process gas market The services for turbocompressors, steam tur- The audit’s methodology leads to high success bines and other turbomachinery HOERBIGER has rates with upgrades and revamps. This success made available in North America for several years plays a role in HOERBIGER winning subsequent now will be considerably expanded in the future. contracts by positioning itself as a preferred tech- In addition to service packages for small turbo- nology partner. compressors and steam turbines, HOERBIGER now also offers customized solutions for medium- In 2013, the first year of the REE initiative, sized turbocompressors and steam turbines in HOERBIGER was able to conduct over 40 REE the 10 to 30 megawatt power range. audits—in refineries, petrochemical plants and plants of the gas industry. During these audits, Engineering for gas engines a total of approximately 240 compressors were In close cooperation with HOERBIGER Engine inspected, allowing significant, and in some Service (HES) in Houston, the North American instances radical, improvements to be identified. service organization is also offering engineering services for revamping compressor stations, to include the gas-powered engines used to drive reciprocating compressors.

An important building block for this will be stan- dardized upgrade and revamp service packages for these engines.

Experts in Upgrades and Revamps: Hervé Ferraris, Business Development & Marketing Manager, REE Auditor / Markus Wenisch, Solution Sales Manager / Dietmar Artner, Engineering Manager, REE Auditor / Norbert Kürner, Engineering Manager, REE Auditor / Nikolaus Lubega, Business Development Manager, REE Auditor. 84 Strategic Business Unit Compression Technology 85

organizational structures—North America

Closer contact with operating service branches to focus even more Western Europe: With this goal in mind, HOERBIGER will customers thanks to on the direct contact with customers. Facing the strengthen the service workshop in Maxdorf, recession with performance Germany. It is located in the immediate vicinity more efficient For example, one of the most successful ser- For Service Area West, which primarily encom- of key customers from the oil and process indus- organizational structures vice locations in the USA is the workshop in passes the European core countries, business in tries. The goal in 2014 is to centralize all major Romeoville, Illinois. The regional service portfolio 2013 was off to a sluggish start given the eco- repair processes for valves, rings and packings in The realignment of the service business in the is centered around orders for the process gas nomic development in the eurozone. Irrespective Maxdorf for the customers from Germany, Austria United States is being supported by new struc- industry. Since the service location continues of the general economic conditions, repeat initia- and Switzerland. tures. For example, as of the end of 2013, the to look promising for the coming years in terms tives aimed at boosting sales, new turbomachin- service organizations were consolidated into one of profitable growth, but the existing premises ery projects and the new REE initiative helped Another important location of the oil and process single region. Management of the previously had size constraints, the branch was relocated to to limit the impact of the weak economic cycle industries in Germany is Hamburg. HOERBIGER independent service regions of Midcontinent, Joilet, Illinois. The new site offers considerably on HOERBIGER sales volumes. Significant proj- will open a technology center here for field ser- based in Denver, Colorado, USA, and Gulf Coast, more space, and consequently increased capacity ects for upgrading reciprocating compressors and vice as well as for upgrades and revamps of rotary based in La Porte, Texas, USA, were combined for processing additional orders. steam turbines were awarded in particular in equipment. with the management team of the existing Sweden, Germany, France and Belgium. regional headquarters based in Houston, Texas, Another important contribution toward enhanc- In return for the expansion of the service capac- USA. The locations in Denver and La Porte ing the service network in the United States is An ambitious goal of the Service Team in Western ity in Maxdorf and the development of the new will continue to function as operating service the relocation of the service workshop in Baton Europe is to gain new orders from the process technology center in Hamburg, the existing site branches. Rouge, Louisiana, USA, to a larger nearby facility industry. in Walsrode, Germany, will be closed by the end initiated in 2013. This brings the HOERBIGER of 2014. The new structure is aimed at maximizing syner- service team closer to key customers such as In Europe, Germany is an important location of gies by standardizing processes, reducing over- BASF, Air Liquide and Shell—without losing the process industry. Given the long tradition head and improving internal and external com- proximity to the customers in the region previ- and accordingly strong customer relationships munications. At the same time, it will enable the ously serviced from the Baton Rouge location. between equipment operators, OEM manufac- turers and service businesses without brand commitment, it is difficult for all the market players in the process industry to develop new opportunities for services.

The goal of the service organization to gain addi- tional market share in the process industry in the European core region and to generate additional contributions to earnings is therefore ambitious.

Administration/internal organization Production location Service location 86 Strategic Business Unit Compression Technology 87

Eastern Europe: The upgrade and revamp potentials of com- Middle East and Africa: Even with political unrest in Egypt and Libya, Growth with new business models pressors highlighted in the audits will positively Making headway HOERBIGER maintained the market position and While the oil, gas, and process industries in impact growth of HOERBIGER Service in Eastern The Middle East and Africa region continues built a strong foundation for continued growth in Western Europe are growing at a slow rate, Europe as early as 2014. to make headway. The service region man- those countries as well. Following comprehen- Eastern Europe continues to provide excellent aged to grow market share despite the ongoing sive restructuring in 2013, the order situation growth opportunities. The Area East team is also proud of success- unpredictable political and economic condi- in Algeria is also again significantly better than ful engine upgrades in Lithuania and Poland. tions. New sales offices were opened in Port in previous years. One strategically important step in 2013 was Completion of these projects required the Harcourt, Nigeria, in Douala, Cameroon, and in to apply the Wellhead Compression Initiative effort of teams from Eastern Europe as well as Nairobi, Kenya to be even closer to customers in from Latin America to locations in Romania and HOERBIGER experts from the US and Sweden. the future. The service branch in Johannesburg Russia. HOERBIGER is investing in the develop- in the Republic of South Africa was expanded ment of special service teams in both countries. Given the excellent growth potential in Eastern to act as a logistics hub for services in southern They will form the core of the future Competence Europe and Central Asia as well as the solid Africa. Center of the Wellhead Compression business in performance of the Service organization, Eastern Europe. HOERBIGER has been investing heavily in expanding service in Eastern Europe, including Thirteen REE audits performed in nine countries in a new service workshop for Turkey in Istanbul. during 2013 introduced the second strategic service initiative, in addition to the Wellhead Compression Initiative, into Eastern Europe. Together project

TOGETHER we achieve more! The headquarters of the Middle East and Africa service region is located in Dubai in the United Arab Emirates.

A pilot project that will be crucial for the entire Group was launched in Dubai as part of the TogetheR project in November 2013.

A newly developed enterprise resource planning (ERP) system has helped to optimize the logis- tics flow between the region and the manufac- turing locations of the Strategic Business Unit Compression Technology.

The team in Dubai has managed to set a new effi- ciency standard for logistics in the HOERBIGER Group.

Administration/internal organization Production location Service location 88 Strategic Business Unit Compression Technology 89

Asia: Successful in the after-market The Service Division was able to successfully position itself in the aftermarket in Asia, notably through customized engineering services as well as the installation of energy-saving HOERBIGER HydroCOM systems.

Going forward, the goal is to expand the compa- ny’s footprint especially in continued high-growth “Having continually advanced TurboTech markets such as Myanmar, the Philippines, since its founding 17 years ago, we Vietnam and Pakistan. HOERBIGER is presently saw the need to develop new markets to realize ongoing growth. The strategic investing in the expansion of the service work- commitment to turbomachinery and shops in Thailand and Malaysia to be in closer the global nature of the HOERBIGER proximity to the customers while better meeting Group, in conjunction with our technical their needs. Important growth initiatives include expertise, create the perfect combina- tion. I am excited to contribute to this the hiring of additional engineers and the expan- development.” sion of the sales force. Paulo Soares de Oliviera Business Development Manager HOERBIGER Service Latin America, Inc.

Administration/internal organization Production location Service location

Latin America: Almost 80 percent of these units were delivered Based on the good experiences so far, In December 2013, the success- Important growth and installed in 2013. This was an enormous HOERBIGER can look forward to additional con- ful conclusion of the acquisition momentum achievement not only for the wellhead com- tracts in Latin America in the near future—for of TurboTech Engenharia, an engi- The Wellhead Compression Initiative, pression unit manufacturer, but also for the the Loma La Lata gas field and beyond. In par- neering company in Salvador, Brazil, a business model that was initially HOERBIGER team in Argentina. ticular the major Vaca Muerte shale gas play— specialized in turbomachinery, cre- developed in Argentina and Chile which presently ranks as the third-largest shale ated the conditions for HOERBIGER to become a “The acquisition of TurboTech by five years ago, has stimulated the New field crews had to be hired and trained, gas deposit in the world—will positively impact leading provider in the turbomachinery business HOERBIGER creates strong synergies highest growth for the service busi- and special trucks and tools had to be acquired the growth of the service business in the region. in Latin America. The acquisition of TurboTech between a company that has mastered the service and installation of turbines “The incorporation of TurboTech into ness in Latin America—posting continued excel- in order to manage the installation and mainte- effective January 1, 2014 will not only lead to and a technology leader with a global the HOERBIGER Group is fully aligned lent sales growth. nance work associated with the leasing contracts. new growth in Brazil, but also open the doors presence. This is motivating to me, with our growth strategy. Utilizing In Añelo, a small town near the Loma La Lata for new business opportunities in other Latin and I’m proud to be able to apply my TurboTech’s know-how, HOERBIGER The majority of wellhead compressors leased natural gas field, a dedicated operational base American countries. knowledge to the challenges that lie now has the ability to provide outstanding ahead of us.” services for the turbomachinery business by HOERBIGER to customers in Latin America was established for the HOERBIGER field crews. both in engineering and in the field.” are located in the Loma La Lata gas field in the Jairo Torres de Silva Neuquén province of Patagonia, Argentina. Technology and Product Development Manager Ricardo Opperman HOERBIGER Service Latin America, Inc. Head of Product Management Turbo Machinery – LATAM, HOERBIGER Service Latin America, Inc. 90 Strategic Business Unit Compression Technology 91

Production Division

Key success factor dards, are increasingly displacing local and The Operations Master Plan in the Strategic Operational Excellence 2018 Production regional customer relationships. Business Unit Compression Technology in 2010 The Expert Network endeavors to achieve initiated a project that was aimed at moving Operational Excellence in all locations by 2018: HOERBIGER is considered an innovation and HOERBIGER has recognized this trend and in all manufacturing locations toward one com- a new quality of the Global Footprint, with last- technology leader around the globe—notably in 2007 structured the Compression Technology mon best practice standard, both in terms of ing impact on the efficiency of HOERBIGER the oil, gas, and process industries where the Business Unit into divisions. The transition from high-volume and small-lot production. The idea Compression Technology’s worldwide produc- Strategic Business Unit Compression Technology a formerly regional structure to the OEM, Service behind this is that 12 locations operating inde- tion operation. has repeatedly set standards with performance- and Production Business Divisions now bearing pendently of each other can never be as strong defining components. HOERBIGER owes this global responsibility set the course that allowed as the bundled force of an organization that is In an effort to capitalize on the broadest pos- achievement to outstanding engineering perfor- synergies in Production worldwide to be used in aligned with shared goals. sible range of synergy potential and achieve the mance, but also—and this is critical for the com- the spirit of a “global footprint.” best results, the Expert Network is analyzing pany’s long-term success as well—to Operational Bringing out the best together Production from three perspectives. Excellence. HOERBIGER achieved initial successes in 2009 To bring out the best from the entire manufactur- with the consolidation of technical procurement. ing operation, representatives from all 12 loca- From the customer’s perspective, aspects that Efficiency and reliability matter in the oil, gas, The Operations Master Plan was introduced in tions of the Strategic Business Unit Compression are considered include performance, quality, and process industries. Having a particularly the same year. A pilot project initiated in the Technology formed an Expert Network. logistics and on-time delivery as well as the influ- intelligent business idea alone is not sufficient. Serial Compressors Business Segment in 2010, ence of the manufacturing processes on pricing. Stable and optimized processes, on-time deliv- in which the locations in Schongau, Germany, The objectives: ery, outstanding product quality and competitive Thane, India, and Changzhou, China, partici- n Sharing best practices From the optimization perspective, the assess- costs are key factors among partners who must pated, created uniform performance standards n Access to global manufacturing data ment includes productivity targets, turnaround be able to rely on each other in a fiercely com- worldwide through standardization and optimized n Pooling the procurement volume times, the quality of employee selection, deploy- petitive environment. procedures in production. n Agreeing on global supplier lists ment and management, training and continuing for essential product groups and education, as well as the use of investments in In the course of globalization, the Production The success of the Operations Master Plan in collaboration with strong partners processes and technologies. Unit has also become a critical success factor the Serial Compressors Business Segment with n Deriving global standards for the customers of the Strategic Business Unit regard to series production emboldened the n Developing shared tools for From the strategy perspective, the project work Compression Technology—like HOERBIGER, Business Unit to also employ the methodology of implementation of these standards looks at new business models, innovations in they are traditionally medium-sized Hidden the pilot project to address optimization potential n Establishing key global projects the development pipeline, potential additional Champions themselves. Global networks, in in made-to-order production, which is typical of n Assuring continuous innovation production locations, as well as the integration which buyers and suppliers must rely on stan- the orders in the Compressor Solutions Segment. in all areas of Production of Service and Production. 92 Strategic Business Unit Compression Technology 93

The Expert Network conducts this project work business economics guidelines, but also with by holding workshops, using innovative tools and respect to their contribution to the global stan- forms of communication, such as video-based dardization of manufacturing technologies. In an web conferences, as well as exchanging infor- effort to standardize equipment and machines, mation via shared project databases. Progress global master agreements were entered into with in the more than 400 individual projects has select machine tool manufacturers in 2013 for been efficient—with impressive initial successes. the delivery of machines and systems.

Inventory reduction and Another important aspect in connection with higher contributions to result investment planning is the optimization of the In 2013, the Production Business Division machine pool by relocating machines among achieved considerable increases in efficiency individual locations. This has already resulted in Production solely from greater standardization in considerable savings in 2013, which will have of equipment and tools, the successful conclu- a significant favorable impact on the investment sion of new master agreements for materials, as budget in the coming years. well as organizational measures. A new quality Inventories of semi-finished products and fin- of global collaboration ished goods were drastically reduced. At the Supported by clear targets, transparent same time—in combination with optimized pay- communication at all locations and in the ment terms—cash flow was improved. Expert Networks, as well as a global Project Management organization that is comparable All of this has positively impacted the cost struc- to an in-house consulting team, the production ture of the Compression Technology Business plants were mobilized to work together even more Unit, allowing Production to make a higher con- intensively in 2013 than in the past. tribution to the result in 2013. This transformation has resulted in the identifica- The Production Division has also set ambitious tion of best practices and a greater preparedness goals for the coming three years. A key aspect to implement necessary changes, demonstrating will be the realignment and consolidation of the acceptance of the analytical tools that are all HOERBIGER entities in Austria at the new employed in this improvement process. Equally HOERBIGER site in Vienna-Aspern. as important for the success of the Operational Excellence initiative is the openness of man- Optimized investments agers and employees toward the organizational in new machines measures that are derived from the project work. Simultaneously with the Operational Excellence project, the Production Division invested con- siderable funds in 2013 in modern, efficient machines and equipment.

To attain the greatest benefit from the capital that such investments require, the plants are working considerably more closely together in the investment process than in the past. Investments are no longer evaluated solely based on strict

Key Success Factor Production: We’re strong together! Nicolaus Stadler, Head of Global Project Management / Wolfgang Ebner, Assistant Plant Manager & Global Project Management Officer / Hannes Hunschofsky, Head of Production Division – Global Operations / Frank Schmidhofer, Head of Production Non Metallic Parts. 94 Strategic Business Unit Drive Technology 95

SHIFTED GEARS AND picKED UP SPEED

Posting sales growth of 2.7 percent, the Strategic Business Unit Drive Technology again increased its corporate performance in 2013. While sales of 338.5 million euros were achieved in 2012, the figure at year-end in 2013 was 347.5 million euros.

“2013 was the best year in the history of the Strategic Business Unit Drive Technology.”

Dr. Siegmar Schlagau CEO of the Strategic Business Unit Drive Technology until February 2014 96 Strategic Business Unit Drive Technology 97

Strategic Business Unit Drive Technology Thomas Englmann

By consistently focusing on its core competence, Shifting power for compact cars: namely the development, design and manufac- HOERBIGER CompactLINE ture of synchronizers for manual and double- The HOERBIGER CompactLINE unveiled in clutch transmissions, the Strategic Business 2013 is a fundamentally new synchronizer sys- Product Unit Product Unit Friction Systems Sleeve Systems Market & Technology Finance & Support Human Resources Unit Drive Technology and HOERBIGER picked tem that was developed based on up considerable speed in 2013 and—mea- the outer cone synchronizer prin- sured against the mid-range planning of the ciple. It is intended to create new As of 4/1/2014 HOERBIGER Group—achieved the best annual impetus regarding the design of performance of all three Business Units. manual and double-clutch transmis- sions in the compact and mid-sized The investment in a new plant for synchronizer car segments. components in Schongau, Germany, as well as the restructuring efforts of the hub system manu- With its CompactLINE, HOERBIGER facturing operation in Oberstenfeld, Germany, will be able to develop additional have paid off. At considerably reduced capital market potential among small trans- Strategic Business Unit Drive Technology expenditure compared to previous years, the missions with up to 200 Nm input torque—in a “With the development of the Strategic Business Unit posted higher year-over- market segment where continued strong growth CompactLINE, HOERBIGER HOERBIGER is the first choice for the worldwide maker Renault; the Opel and Chevrolet brands year sales in 2013—in a competitive environ- momentum worldwide is anticipated. delivered yet another technical pioneering achievement.” automobile industry when it comes to synchroniz- of General Motors; FIAT Powertrain Technologies ment where all market players are under increas- ers that are primarily used in passenger cars, but with the brands Fiat, Alfa Romeo, Lancia, ing cost pressure. High-end carbon friction linings: Dr. Ansgar Damm also in light commercial vehicles. Chrysler, Dodge and Jeep; the SAIC, JAC, FAW, HOERBIGER HC300 for the ClassicLINE Head of Research and Development Qoros and Changan brands in China; Hyundai With a honed strategy, a flexible, global structure, With the HOERBIGER HC300 friction lining HOERBIGER Antriebstechnik Holding GmbH Customers of the Strategic Business Unit Group in South Korea; as well as AvtoVAZ in and optimized processes, the Strategic Business developed for traditional manual transmissions Drive Technology include in particular major Russia with the Lada brand. Unit Drive Technology has a stable foundation. built according to the BorgWarner principle, international, independent transmission manu- Both employees and management are geared HOERBIGER is also sparking innovative ideas facturers: GETRAG Corporate Group and its Focused on toward growth. Following the internal consoli- for the synchronizers of the ClassicLINE. international subsidiaries, ZF Friedrichshafen synchronizer competence dation, the view is now primarily directed at AG, Magna International; TREMEC as well as In recent years, the Strategic Business Unit Drive growth in the key markets with global and local The HC300 friction lining developed with BorgWarner. Technology focused its operation on the develop- customers. HOERBIGER carbon technology has been opti- ment and production of synchronizers for manual mized with respect to high mechanical load-bear- In addition to transmission manufacturers, glob- and double-clutch transmissions. Setting standards ing capacity and the use of modern low-viscosity ally operating automobile groups that produce transmission fluids. transmissions in-house rely on HOERBIGER syn- Its locations in Schongau, Oberstenfeld and with innovations chronizers and transmission components. These Penzberg in Germany, the Waterloo plant in for the drive train Carbon provides high shifting comfort. include Daimler AG with its Mercedes-Benz and Canada, and the Changzhou site in China give Additionally, synchronizers featuring carbon fric- Smart brands; Volkswagen Group and its VW, the Strategic Business Unit Drive Technology a For the Strategic Business Unit Drive Technology, tion linings are equally as robust as conventional Audi, Seat and Skoda brands; French auto- worldwide and market-oriented presence. setting standards involves bringing new innova- steel sintered friction linings. The result of this tive, performance-defining key components to combination is smooth shifting without hanging market at the right time. Good examples are the and undesired pressure points. HOERBIGER CompactLINE and the innovative HOERBIGER HC300 friction lining. 98 Strategic Business Unit Drive Technology 99

HOERBIGER CompactLINE

HOERBIGER CompactLINE the 1970s, previously no manufacturer dared to consider series production given the design and A newly developed synchronizer manufacturing complexity. system revolutionizes modern manual and double-clutch The HOERBIGER CompactLINE has, for the first transmissions for passenger cars time, made an outer cone synchronizer avail- Compact, efficient, cost-effective: HOERBIGER able that is compact, efficient and competitive presented the newly developed CompactLINE to produce. Compared to traditional synchroniz- synchronizer for the first time to a broad trade ers, the outer friction cone provides up to a 20 audience in June 2013 at the International percent increase in friction torque. Combined VDI Congress “Transmissions in Vehicles”. with the powerful HOERBIGER sintered linings, HOERBIGER is pursuing new avenues in the even maximum loads are not a problem, while design and manufacture of CompactLINE. The minimizing wear—at consistently high shifting CompactLINE offers transmission manufactur- comfort. ers best-in-class shift comfort, combined with a significant weight and size reduction at favorable The HOERBIGER CompactLINE is particularly manufacturing costs. suited for manual and double-clutch transmis- sions with up to 200 Nm input torque—and While the fundamental design principles of the consequently primarily for vehicles in the high- outer cone synchronizer have been known since volume compact and mid-sized car segments.

Consulting and sales— In 2013, the core competencies for synchronizer Expertise from one source systems and sliding sleeves were assigned to the new Product Units Friction Systems and At the beginning of the 2013 fiscal year, Sleeve Systems. HOERBIGER replaced the former organizational structure encompassing the Shift and Torque Marketing and Sales have been coordinated Divisions. A new management structure that since the beginning of 2013 in the newly cre- was geared more strongly forward functions ated Market & Technology unit; its manage- took its place effective January 1, 2013. At ment is in charge of Development, Sales and the same time, the business model was updated. Purchasing.

Development team of the HOERBIGER CompactLINE: Alfred Breitschädel, Foreman Measuring Room Plant Quality / Berthold Negele, Design Metal Forming Technology Center of Competence / Wolfgang Völk, Advanced Engineering Testing / Michael Bauer, Process Engineer Industrial Engineering / Jürgen Binder, Design Engineer Advanced Engineering. 100 Strategic Business Unit Drive Technology 101

Handing over the helm HOERBIGER As in 2012, the automotive sector in North Operational Excellence— in every transmission America again reported significant growth in Certified in all plants 2013. Gaining 7.3 percent, total sales rose to Dr. Siegmar Schlagau hands The self-imposed performance goal of the 18.4 million vehicles. Stable procedures and a consistently high quality over helm to Thomas Englmann Strategic Business Unit Drive Technology is standard: Operational Excellence matters to our ambitious: HOERBIGER in every transmission. China, which continues to be the largest driver customers from the automotive industry. Dr. Siegmar Schlagau, a member of the of growth in the global automobile market, HOERBIGER Executive Board and CEO of The task at hand that the General Management exceeded expectations. With 21.3 million new Internationally recognized certifications accord- the Strategic Business Unit Drive Technology, Team established in 2013 derives from this is: light vehicle registrations, it posted an increase ing to the quality management standards ISO will relinquish all his leadership of 14 percent. 9001 and ISO/TS 16949 as well responsibility in the Group effec- n the best employees as according to the environmental tive June 2014. n the best components Despite positive results in the last quarter of standard ISO 14001 are accordingly n the best systems 2013, sales in Europe receded by 1.6 percent important. His successor as CEO of the n the best price to 17.9 million vehicles. Automobile produc- Strategic Business Unit and a tion, on the other hand, showed minor growth All the locations of the Strategic member of the Executive Board Powerfully and of 0.3 percent, rising to 19.3 million vehicles. Business Unit Drive Technology is Thomas Englmann, who since competitively positioned Especially Germany’s high-end manufacturers are IS 9001 and ISO/TS 16949 2006 has been Head of the Serial The goal of streamlining the managerial structure benefited from high export figures for vehicles certified. Following preparations Compressors Business Segment was to make and implement management deci- in the premium segment. lasting approximately one year, in in the Strategic Business Unit sions with more power and flexibility. November 2013 the certification “It’s time to make room for the Compression Technology and Managing Director Cost leadership process was also successfully concluded for “We set our sights on our markets, next generation. It is important of HOERBIGER Kompressortechnik GmbH, And the Business Unit was successful: Thanks in global markets Plant 2 in Schongau, which was put into opera- our customers, and innovative new to me that I hand over the helm Schongau. to various internal process optimizations, the Global automobile groups as well internation- tion in April 2012. products. What is it that we do for with sufficient transition time.” our success? Management Excellence, Strategic Business Unit Drive Technology was ally operating transmission manufacturers are Product and Operational Excellence.” Dr. Siegmar Schlagau Thomas Englmann, who is a graduate indus- able to process requests for quotations from the increasingly striving to considerably reduce In April 2012, Plant 2 was constructed at Member of the Executive Board until June 2014 trial engineer, has many years of experience in market considerably more quickly and appropri- model variety. the Schongau site in Germany—an investment Thomas Englmann and CEO of the Strategic Business Unit the automotive business. Even before joining ately, and to promptly submit attractive quotes of 28 million euros. The modern machinery Member of the Executive Board starting in Drive Technology until February 2014 July 2014 and CEO of the Strategic Business Unit HOERBIGER, he worked in various leading posi- to customers. As a result, the Business Unit was HOERBIGER has demonstrated time and again of the new plant has allowed HOERBIGER Drive Technology since March 2014 tions for a supplier in the industry. awarded a number of new projects. that it is possible to develop cost-effective pro- to again set the standard for technological duction processes that are both able to meet cost leadership in the manufacture of sliding Despite its excellent position in terms of tech- the customers’ need for platform solutions and sleeves. The advanced manufacturing know-how nology and cost, worldwide competitive pressure perpetuate the standard for performance and now also benefits performance optimization pro- continues to increase on the Strategic Business shift comfort in transmission technology. cesses at the Oberstenfeld and Changzhou sites. Unit Drive Technology. As a result, HOERBIGER will continue to invest in the development of technology, with the objective of winning new ISO 9001 and ISO 14001 contracts, both in Europe and in Asia. The focus here is synchronizers for compact and mid-sized cars. certified Antriebstechnik GmbH in Europe and in the processes Americas in October 2013. The certificate was Positive mood on the renewed for Plant 1 as well as the Penzberg and international automobile markets The ISO 9001 certificate is awarded for Waterloo locations, while the coveted accolade The growth initiatives of the Strategic Business the Quality Management System of the was awarded for the first time to Plant 2. Unit Drive Technology are encountering an overall HOERBIGER locations, while also serving as positive market environment. the prerequisite for the certification according Preparations for all certification processes to ISO/TS 16969—a standard that primarily were supervised by the “Quality Management / According to data published by the market intel- considers the special requirements in the auto- Environmental Management / Occupational ligence service IHS Global Insight, worldwide motive industry. Health and Safety” Department of HOERBIGER sales of passenger cars and light commercial Antriebstechnik Holding GmbH. The team in vehicles in 2013 rose from 79.5 to 82.9 million An exemplary environmental management Schongau supports the worldwide locations of vehicles, or 4.2 percent. system is the prerequisite for attaining certi- the Drive Technology Business Unit in all topics fication according to IS 14001. This certifi- related to quality, environment, and occupational cate was awarded to all sites of HOERBIGER health and safety. 102 Strategic Business Unit Drive Technology 103

idea management

Best in class when it comes Superior to improvement suggestions metal forming technology In 2013, the Strategic Business Unit Drive With its know-how and long-standing experi- Technology employed a staff of 1,416 people. ence, HOERBIGER is a worldwide market and volume leader when it comes to the production In addition to the internal Voice for Excellence of metal-formed synchronizer rings. Customers initiative, the involvement of employees in of HOERBIGER value this edge in competition. the form of improvement suggestions is an As a result, utilization of the production opera- important indicator of their engagement in the tion and orders for metal-formed synchronizer company. rings are high.

Between October 2012 and March In an effort to meet rising demand, a new form- 2013, employees of HOERBIGER ing press was purchased for Plant 1 in Schongau Antriebstechnik GmbH in Schon­ in 2013. For its installation, the existing pro- gau, Germany, collected over 4,000 duction facility was expanded by 1,350 square ideas. This earned HOERBIGER meters (14,500 square feet) of usable floor first place for best idea manage- space, taking up an area that previously served ment in the “DeutscheIdeenPreis as a plant parking space. 2013” competition, which is orga- nized by the German Institute for The ground breaking ceremony for the project Management and Economics. More was held on April 30, 2013. It only took until “We are very proud of the than 160 companies regularly participate in this September 27, 2013 for the Strategic Business DeutscheIdeenPreis. We hope to be able challenge. The expert panel awards prizes to Unit Drive Technology to hold the topping-out to retain this standing again in 2014.” companies with outstanding creativity, courage ceremony, and the first extended table press for Robert Notz to innovate, and responsibility. the new production facility in Schongau arrived Head of Friction Systems Product Unit on October 18, 2013. HOERBIGER’s investment HOERBIGER Antriebstechnik Holding GmbH When it comes to making use of improvement in this growth project alone amounted to 7 mil- suggestions, HOERBIGER is best in class in lion euros. Germany. In relation to the economic ben- efit per suggestion, HOERBIGER made first The newly constructed manufacturing facility will place nationwide among companies in the initially provide space for two additional forming automobile supplier industry group in a rank- presses to produce synchronizer rings as well ing published in 2013 by the trade magazine as for the related tool maintenance equipment. AUTOMOBILWOCHE. Depending on future growth, the building could be further extended by an additional 800 square meters (8500 square feet) in a second construc- tion phase and would then accommodate two more forming presses.

In great shape—the employees of the Strategic Business Unit Drive Technology: Birgit Krönke, Receptionist / Cemil Demir, Project Management Oberstenfeld Plant / Ottmar Back, Product Management / Werner Erhard, Plant Maintenance / Ali Koyun, Team Leader Production, Penzberg Plant / Sabine Böhm, Production Heat Treatment Plant 2 / Domenic Marturella, Machining Equipment Operator Plant 2 (sitting). 104 Strategic Business Unit Drive Technology 105

The future: marketing The Strategic Business Unit Drive Technology Penzberg anniversary has set the goal for 2014 to ascertain the global strength from global best benchmark prices in the industry for all product unit strategies key product groups in Purchasing, taking into 50 years of HOERBIGER the Kempten Municipal Court on September 25, account the high quality standards required by in Penzberg 1964. Approximately 30 employees worked for In the coming years, the Strategic Business Unit HOERBIGER, and to procure at these prices. The HOERBIGER in Penzberg by the end of the fis- Drive Technology will concentrate even more on goal is to purchase these product groups at lower In 2014, the Penzberg location of the Strategic cal year. developing global Product Unit strategies. The costs, if possible, than the global competition. Business Unit Drive Technology can look back focus of this effort will be on the Asian automo- on 50 years of successful operation. The site has since been continually expanded. bile markets, notably China and India. Globally standardized, Especially in the 80s and 90s, new offices and stable manufacturing processes It all started with the production of compressor staff facilities were created, and the construc- The Strategic Business Unit Drive Technology Another strategically important pillar for the con- valves, clutch disks and pneumatic equipment. tion of new buildings significantly increased the pursues the long-term goal of securing a position tinued development of the Strategic Business Around the mid-1960s, the HOERBIGER plant manufacturing capacity. in these continued high-growth markets which Unit Drive Technology are globally standardized, at that time in Schongau was utilized to full is comparable to that in the existing markets. stable manufacturing processes. They form the capacity and searching for a second location In the anniversary year, the site—which previ- To accomplish this, it is necessary to develop foundation for a global production network, in in Upper Bavaria. A new factory constructed in ously specialized in clutch disks for traditional tailor-made performance-defining components, which capacities can be used flexibly without 1962 was up for sale in Penzberg, just over 50 automatic transmissions equipped with torque notably for transmissions used in compact cars. increasing complexity. kilometers (31 miles) southeast of Schongau. It converters and all-wheel drive transmissions— A first example is the HOERBIGER presented a good opportunity for HOERBIGER to will be increasingly integrated in the manufac- CompactLINE. Nonetheless, HOERBIGER still pursues the goal acquire a property for the urgently needed second ture of synchronizer components for manual and of developing automotive components in the manufacturing location in Germany. double-clutch transmissions. Another challenge in this regard is region for the region. Subsequent to develop- the development of global strate- ment, globally interlinked manufacturing opera- The contract of sale was concluded in July 1964, gies for the Friction and Sleeve tions ensure uniform quality standards world- and the business was officially registered with Systems Product Units. Emphasis wide. With this, the Strategic Business Unit Drive here will be placed on global flexible Technology responds to the local requirements use of capacities, associated with of its globally operating customers. They rely on decreased manufacturing complexity consistent quality, worldwide. and systematic cost management. “We want to enjoy what we do. Looking at The production processes will be supported by the worldwide market, our development Industry insiders anticipate that especially IT structures, which must designed with the potential remains excellent. We have the large, national automakers from China will automotive field in mind, i.e. they must be lean everything in place to capitalize on the opportunities of the global market.” increasingly develop production and distribution and add value. At the same time, the necessary structures in Europe and North America. optimization of all processes is a prerequisite Thomas Englmann for the planned introduction of SAP 6.0 in the Member of the Executive Board effective HOERBIGER is already an important partner to Strategic Business Unit Drive Technology. July 2014 and CEO of the Strategic Business Unit Drive Technology since March 2014 the national automobile industry in China. This exposure will pay off when the existing local brands become global players.

Optimized use of capital and best benchmark in procurement Optimizing the use of capital remains an impor- tant topic—for HOERBIGER, and for all other market players.

In 2013, the Strategic Business Unit Drive Technology managed to lower dependency on individual suppliers, reduce inventory and sus- tainably improve the cash flow position. 106 Strategic Business Unit Automation Technology 107

WE ARE ON COURSE— NOW IT IS TIME FOR FINE TUNING

In 2013, the Strategic Business Unit Automation Technology generated sales of 59.4 million euros, an increase of 4.6 percent over the previous year’s sales of 56.8 million euros.

“By focusing on the Business Segments Valve Automation and Compact Motion Technology, we are systematically following our trajectory.”

Norbert GauSS CEO of the Strategic Business Unit Automation Technology 108 Strategic Business Unit Automation Technology 109

Strategic Business Unit Automation Technology Norbert Gauß The mechanical and plant engineering industry HOERBIGER ePrAX actuator for press brakes, the continues to operate in an overall difficult mar- HOERBIGER Laser Gas Regulator for laser cut- ket environment. The individual market players’ ting systems, the EHAS and TriVAX actuators for business development varied drastically in this automated control valves, newly developed piezo- environment. A small proportion of machine pneumatic positioner modules, as well as new and equipment manufacturers reported record lifting columns for operating tables. Response profits at the end of 2013, while others found from the customers to these innovations has been themselves insolvent over the course of the year. overwhelmingly positive. Business Segment Business Segment Valve Automation Compact Motion Technology Platform Development Operation Center The greatest challenge and task for the Strategic Still, in a market environment where invest- Business Unit Automation Technology remains ments require very long-term planning, even As of 4/1/2014 to achieve even higher and more comprehen- innovations that are rated positively both by the sive market penetration with newly developed trade press and expert community take time to products. become established as new standard applica- tions in series production and plant engineering. HOERBIGER’s expectations for the Strategic Business Unit Automation Technology are based on the best companies in the industry. The Compelling performance: positive sales performance achieved in 2013, Strategic Business Unit Automation Technology HOERBIGER valve actuators bucking the market trend, is a good indicator that HOERBIGER is on the right track with the In the Valve Automation Business Segment, With the goal to set itself apart from the com- then: the symbiotic blend of hydraulics, mechan- mechanical and plant engineering expertise it the EHAS valve actuator has positioned the petition with components and systems that ics and electronics. The objective is to develop has acquired over the years, with new and inno- electrohydraulic drive technology developed by combine performance, simplicity, energy effi- powerful, simple and reliable actuators. vative products and with new momentum from HOERBIGER successfully in the market and ciency and reliability, the Strategic Business Unit Marketing, Sales and Application Development, proven the advantages of electrohydraulic valve Automation Technology realigned itself in 2010. The intelligent combination of function, comfort and will be able to generate considerably more actuators featuring safety functions in numer- And it did do so in three Business Segments: and reliability—that is the challenge behind the growth with these initiatives. ous projects. goal of carefully crafted actuator technology. Industrial Machinery The continued goal is to expand the Strategic An important field of application of the Smart electrofluidic actuators for the general Compact Motion Technology Business Unit Automation Technology into HOERBIGER valve actuators is safety shut-off machinery market and Valve Automation a third strong pillar of the Group, in addition valves of pipelines. One of the key requirements In January 2014, the Strategic Business Unit to the Strategic Business Units Compression of pipeline operators is that pipes with high flow Valve Automation Automation Technology merged the existing Technology and Drive Technology. The approach rates and large cross-sections must be closed Smart electrofluidic actuators for the oil, gas, and Business Segments Industrial Machinery and is centered around new product and business safely, quickly and reliably. The customers in process industries, for the energy sector, and for Multi Market to form the new Compact Motion ideas. this market segment of the oil and gas industry the water and wastewater industry Technology Business Segment. The objective is therefore value the power density and fast clos- to support all the customers from the mechani- Strategically on the ing speed of the HOERBIGER valve actuators. Multi Market cal engineering industry—covering everything Modular solutions for demanding customer from machine tools to medical technology—with right track: Powerful and Another important area where HOERBIGER valve applications in mechanical and equipment a strong engineering, sales and marketing orga- simple, singularly reliable actuators are used is the power plant industry. engineering nization that is managed according to uniform Here, the simple electrical installation in poten- processes. Strategically, the Automation Technology tially explosive atmospheres and low mainte- Starting from a strong market position for hydrau- Business Unit is on the right track by focusing nance expenditure are key unique selling proposi- lic components used in press brakes, for piezo As of January 2014, the Valve Automation on powerful, simple and singularly reliable actua- tions of the HOERBIGER technology. actuators, and for microhydraulic solutions Business Segment, which in German-speaking tors, which combine the strengths of hydraulic, used in a wide variety of industrial applications, countries was previously known by its German mechanical and electronic systems. HOERBIGER has pursued a new development language title, will use the English designation approach in the innovations developed since internationally. Since its realignment in 2010, the Strategic Business Unit Automation Technology has launched numerous innovations: the 110 Strategic Business Unit Automation Technology 111

System solution A major target market for the TriVAX valve actua- tor is the process industry. In this field of appli- for the process industry: cation, the complete package of functionality HOERBIGER TriVAX and installation space of valve actuators must be just right. Considerably lower installation, main- The Valve Automation Business Segment is pres- tenance and operating costs of the HOERBIGER ently working on further expanding the product TriVAX compared to conventional valve actuators portfolio—to include the fully integrated elec- allow equipment operators to efficiently operate trofluidic HOERBIGER TriVAX valve actuator their plants. equipped with safety function, control technol- ogy, software and an easy-to-understand local Another important feature is that the actuator operating unit. can be used as a linear and part-turn actuator.

HOERBIGER TriVAX

red dot design award Only the best of the best are permitted to label for the HOERBIGER TriVAX their products with the red dot, making this a coveted accolade among product designers Simple, powerful, singularly reliable—this is how around the globe. HOERBIGER presents the TriVAX valve actuator to the customers in the process industry. Design Tech, an internationally leading design Yet, the innovative actuator office for goal-oriented machine design head- has more to offer than quartered in Ammerbuch, Germany, developed the ease of use of an the housing of the TriVAX in conjunction with electric drive system HOERBIGER. The innovative valve actuator in combination with combines hydraulics, mechanics and electronics integrated safety func- for the first time in a compact housing, thereby tions and the power reducing the complexity as compared to power density of hydraulics. units from the competition.

At the beginning of The integral design of the TriVAX has a high- 2013, an expert panel quality, clean and purposeful appearance. To consisting of 37 inter- achieve this goal, HOERBIGER fundamentally nationally renowned, re-engineered all components with an integral independent spe- design philosophy in mind and arranged them cialists selected the effectively. This created the conditions for the HOERBIGER TriVAX simple modular expandability of the system. for the ‘red dot award: product design 2013’ The TriVAX is equipped with first-class explo- because of its unique sion protection, which surrounds the unit like configuration. protective armor. As a result, the TriVAX conveys an extremely robust and reliable impression— The red dot has been which is in harmony with the performance claim the best-known award that the HOERBIGER Strategic Business Unit for good industrial Automation Technology has formulated: powerful, design for many years. simple, singularly reliable.

Leading in function and design: the HOERBIGER TriVAX team. Gotthard Gawens, Product Management Valve Automation / Dr. Daniel Haller, Platform Development CC Fluidics & Mechanics / Manfred Gößling, Production TriVAX / Andre Dittrich, Platform Development CC Testing & Validation Norbert Zylka, Platform Development CC Hardware & Software, Drive Technology / Marcus Grödl, Head of Valve Automation Business Segment (clockwise from the top). 112 Strategic Business Unit Automation Technology 113

Proven practicability: The combination of electrical actuation with Performance edge consistently relies on HOERBIGER LGR technol- HOERBIGER piezo technology integrated hydraulics implemented in the with fast gas changes: ogy when it comes to gas supply in its newly HOERBIGER ePrAX actuator allows manufactur- developed ByAutonom laser cutting machines. A second product group in which the Valve ers of press brakes to make an innovative press HOERBIGER LGR One of the key features of this technology is fast Automation Business Segment is engaged is the actuator available which offers maximum forces gas changes. piezo-pneumatic positioner modules developed and utmost precision in minimized space—at The market launch of the newly developed by HOERBIGER. energy consumption that is lower by as much as HOERBIGER Laser Gas Regulator (LGR) in 2013 The HOERBIGER LGR has also piqued the inter- 78 percent over conventional systems. was equally as promising as the pilot applications est of several relevant laser cutting machine Piezo technology is being increasingly accepted of the HOERBIGER ePrAX actuator. manufacturers in Asia for consideration as by manufacturers of smart positioners. For many Only a small number of pilot customers so far a key technology for the efficiency of the gas years, HOERBIGER Automation Technology was have integrated the strengths of the techno- Bystronic Laser AG in Niederönz, Switzerland, a laser. Initial samples were already successfully only able to convince a portion of its major cus- logical symbiosis of hydraulics, mechanics and leading manufacturer of laser cutting equipment, placed. tomers to support this technology. electronics into their development projects. The HOERBIGER positioner modules reason: while the HOERBIGER ePrAX actuator have since proven the practicabil- has a simpler composition than conventional HOERBIGER Laser Gas Regulator ity of piezo technology as a core drive systems for press brakes, it still neces- component of positioners. sitates a fundamental redesign of the machine. This is because the bending motion of the beam Fast, efficient In addition, piezo-pneumatic modules are An ever greater number of manu- is no longer determined by its mass, but rather and Razor-sharp considered to be extremely reliable. The facturers rely on HOERBIGER piezo the bending beam is deliberately guided by the HOERBIGER piezo-pneumatic modules have technology when it comes to making ePrAX actuator. The productivity of a gas laser hinges on the been successfully applied in pneumatic preci- the decision to develop the next gen- precision and speed of the control system in the sion regulators for years, which are also setting eration for existing piezo-pneumatic Before HOERBIGER customers are able to take cutting head regulating the supply of assist gas, standards with their precision and reliability in “Our innovative strength lies in positioner modules. The market is presently advantage of the strong points of the ePrAX oxygen and compressed air. The newly developed sophisticated medical respirators for infants. us disregarding the technological growing at 2 to 3 percent a year. actuator, they make extensive modifications in HOERBIGER Laser Gas Regulator—LGR—regu- boundaries of individual disciplines terms of both design and control technology. An lates the process gas used during laser cutting Thanks to its unique selling proposition of chang- such as hydraulics, mechanics or electronics. Instead, we overcome A new generation of proportional positioner important objective of the Strategic Business up to five times more quickly and considerably ing the gas within a few hundred milliseconds, these boundaries and carefully craft modules will allow the Strategic Business Unit Unit Automation Technology is therefore to sup- more reliably than conventional gas and pressure the HOERBIGER Laser Gas Regulator operates our products, tapping additional degrees Automation Technology—one of the pioneers of port customers interested in the ePrAX even more change systems used in laser cutting machines. up to five times faster than conventional systems. of freedom that many competitors piezo technology in the world—to expand its strongly and intensively in application develop- The piezo-pneumatic system provides a consis- are hard-pressed to achieve. The positive response from the market to market position as an innovation and technol- ment. The core of the Laser Gas Regulator is an elec- tently stable gas pressure (pressure stability: our new products shows that the bold ogy leader in this demanding market segment. trically piloted proportional valve. In addition, ± 0.03 bar) and assures precise cut- realignment of our innovation efforts— Starting with the HOERBIGER ePrAX 15 press three gas selection valves are integrated in the ting edges in consistent quality from a traditional fluidics firm to an actuator with 550 kN bending force per axis HOERBIGER LGR. They allow different process when cutting thin metal integrated mechatronics enterprise— Symbiotic blend of launched in 2010 is producing the unveiled in 2012, the Strategic Business Unit gases to be selected as a function of the material sheets. desired success.” hydraulics, mechanics Automation Technology will supplement its port- that is being cut. folio in 2014 with the ePrAX 19 variant with Dr. Jochen Schaible and electronics: 850 kN bending force per axis. This will allow Instead of the customary heavy solenoid control Strategic Business Unit Automation Technology Head of Technical Competence Center (TCC) Innovative drive systems the customers of the Business Unit to equip valves, which are not particularly dynamic, the for machine tools press brakes in all key performance ranges with HOERBIGER LGR employs piezo-pneumatic the innovative electrohydraulic compact actua- modules developed and produced in-house, The HOERBIGER ePrAX actuator for press brakes tors made by HOERBIGER. which have been tried and tested millions of developed in the Industrial Machinery Business times. In conjunction with precision engineer- Segment is well on its way to becoming estab- ing, sensors and electronics, the modules assure lished as the new standard in its market seg- maximum pressure stability and control per- ment. Several press brake manufacturers have formance, while providing extremely fast and since expanded the test series for the new con- reliable gas changes in the HOERBIGER LGR. cept and shipped prototypes of their machines The innovative assist gas control system is very to interested customers. lightweight, enabling the direct attachment to the dynamically moving cutting head. 114 Strategic Business Unit Automation Technology 115

Multi Market— the future and participate in the market with marketing and sales efforts in the new Compact new product and business ideas, HOERBIGER Motion Technology Business Segment will be New customers, initiated another step in 2013 in order to con- aimed in particular at tapping previously unde- exciting projects tinue down the focusing track started in 2010. veloped potential in the fields of application of the former Multi Market portfolio. In the Multi Market Business Segment, the In January 2014, the previous Business Strategic Business Unit Automation Technology Segments Industrial Machinery and Multi Market The focus here will continue to be placed on continued to achieve great successes in the were merged to form the new Compact Motion components for medical applications—from the medical technology market sector in 2013. Technology—CMT for short—Business Segment. successful lifting column for operating tables The objective of this consolidation is to support to actuators for technologically highly sensitive Lifting columns for operating tables presently all the customers from the mechanical engineer- respirators. In addition, HOERBIGER sees good rank at the top of the Multi Market Business ing industry—covering everything from machine opportunities for development for actuators in Segment in terms of sales. The Automation tools to medical technology—with a strong engi- automotive applications. Technology Business Unit has shipped over neering, sales and marketing organization that is 70,000 lifting columns worldwide. managed according to uniform processes. High dedication— In 2013, the Column Trend Line lifting col- The new business segment encompasses the from innovation to umn newly developed for patient weights up to application development, distribution and mar- 180 kilograms (396 pounds) further cemented keting of electrohydraulic actuators and compact success in the market HOERBIGER’s market share in this attractive axes as well as of hydraulic and piezo-electric The largest contribution to this will come from niche market. The Business segment garnered components for all HOERBIGER mechanical the associates in the Strategic Business Unit several blanket orders from operat- engineering markets. Traditionally this includes Automation Technology. Their dedication over ing table manufacturers in China sheet metal working machines, but also appli- the last few years made the combination of over the course of the year. cations in niche markets that previously were innovation and sustained success on the mar- serviced by the Multi Market Business Segment. ket possible. HOERBIGER gained over 40 new customers in 2014 in the remain- Additionally, the Strategic Business Unit In 2014, HOERBIGER will add approximately ing sectors of the Multi Market busi- Automation Technology will supplement its 40 new employees to bolster expertise in prod- ness. For example, HOERBIGER was portfolio with technologies from the Automotive uct management and marketing, technology and able to qualify for technologically Comfort Systems Business Division. In the development, application engineering, sales sup- challenging, but equally as attractive future, HOERBIGER automotive know-how—tried port and field service. projects such as the locking mecha- and tested in high-volume production—will also “My goal long-term is to develop nism for the blade position of wind turbines. be available for non-automotive applications in At the same time, the Business Unit will be the Strategic Business Unit Another project involved the advancement of a Automation Technology. investing in the efficiency of the production Automation Technology into the third new hydraulic passenger restraint system with strong pillar of the HOERBIGER Group— operation. Supported by targeted value engineer- mechanical locks, which is used in roller coasters with newly developed, powerful and ing, all manufacturing processes will again be smart fluidic actuators.” and other amusement park rides. GOOD ATMOSPHERE analyzed in 2014 with a view to lowering mate- Norbert GauSS IN MECHANICAL AND rial costs and boosting efficiency in production. CEO of the Strategic Business Unit Automation Technology and Member of the Executive Board January 2014: PLANT ENGINEERING Energized with The German Engineering Federation (VDMA) is Compact Motion Technology anticipating a noticeable recovery of the sector in 2014. Traditional industrialized nations will The Strategic Business Unit Automation play a major role in this turnaround. Technology—as the newly gained projects in the Multi Market Business Segment demon- In this overall positive market environment, strate—has high additional market potential. HOERBIGER will devote a lot of attention to To capitalize even more on this potential in the existing business. In addition, intensified 116 Business Division Automotive Comfort Systems 117

Automotive Comfort Systems

The development of hydraulic roof drives for pas- Business Segment. Sales and Development are senger cars by the Automotive Comfort Systems headquartered in Schongau, Germany, and Business Division at the end of the 1980s was a Auburn, Alabama, USA. The largest production pioneering achievement. The company remains plant of the Business Division is Bolesławiec in the worldwide market leader for hydraulic actua- Poland. Hydraulic actuators for the American tors used in convertible tops. The portfolio also market are produced at the site in Auburn, includes pneumatic gearshift support systems for Alabama, USA. commercial vehicles in the Transmission Comfort new GROWTH HOERBIGER achieved a technological break- Maintained market share through in 1989 with the development of a pow- with innovative ideas erful hydraulic actuator used to automatically open and close convertibles. This made it pos- In 2013, the conditions in the market did not WITH sible for the first time to replace the customary change significantly. Demand for convertibles soft tops, which until then were manually actu- has remained stagnant around the globe, and ated, and shell-type hard tops with multi-piece is likely to decline. In new vehicle series, espe- steel tops in high-volume production. cially in the lower price segments, the tops will primarily feature electric drives—with limited The continual development of hard tops made power density. SMART MICRO FLUID convertibles suitable for everyday use. Demand rose accordingly, HOERBIGER benefitted from In contrast, automakers continue rising revenue year after year—until the end of to use powerful hydraulics when it 2007. comes to new developments for the At 66.4 million euros, revenue of the Automotive Comfort mid-range and high-end classes. Systems Business Division in 2013 was 16.5 percent Despite being essentially fit for year-round use, Given the lengths of vehicles in this the convertible has retained its status as a rec- market segment, the roofs have a below the previous year’s figure of 79.5 million euros. reational and luxury object. As a result, the eco- more complicated design, and the The future of the Division will lie in developing new, nomic crisis led to a sudden collapse in demand. roof mechanism must cope with Multiple major manufacturers of convertibles considerably larger extensions and non-automotive fields of application for powerful and and roof systems for convertibles had to file for retractions than in the compact compact hydraulic actuators. bankruptcy. class. “Increasing competitiveness and Suppliers such as HOERBIGER were forced to This is where hydraulics are superior to electri- performance capability by lowering adapt their capacities—and to subsequently pro- cal systems due to their power density. The costs, increasing productivity, and consistently standardizing development duce more cost-effectively than before. Despite Type 6 power unit product family developed led to a large number of new orders being more powerful, the hydraulic drive system by HOERBIGER combines high power den- for roof hydraulics in 2013.” was nonetheless considerably more expensive sity with extreme quietness, low weight, and to manufacture and increasingly displaced by above all compact dimensions. Compared to Gerhard Messmer Head of the Business Division electrical actuators, notably in the lower price alternative technologies, the new power units Automotive Comfort Systems segment. require only minimal installation space in the auto body. The Automotive Comfort Systems Business Division of HOERBIGER responded to the market These are compelling arguments that have trend by relocating the production operation to helped the Automotive Comfort Systems the new production plant in Bolesławiec, Poland. Business Division in 2013 win several produc- Sales, Purchasing, Development and Prototyping tion contracts for the delivery of hydraulic roof remained at the Schongau site in Germany. systems. 118 Business Division Automotive Comfort Systems 119

Type 6 power unit

Start of production Five valves, two flow dividers and the for innovative roof drives newly developed control unit were integrated into a compact drive system. The switching Retractable hard tops combine the undiluted logic ensures the high functionality of the roof open-air convertible feeling with the benefits of actuator: a sturdy roof built for winter conditions. When it comes to reliably opening and closing these n opening and closing the roof comparatively heavy roof systems, by contrast for stowing the top with soft tops, hydraulic actuators clearly have n deploying and stowing the rear view window an edge: within a matter of 20 seconds, the element and the two roof elements from the hard top is deployed or has disappeared again stowage space in the stowage space behind the rear seats of n extending and retracting the individual the convertible. elements n actuating the loading aid for the luggage In September 2013, HOERBIGER started pro- compartment located beneath the roof duction of the first roof hydraulic units from the stowage compartment Type 6 modular system to be manufactured in high volumes at the Bolesławiec site. Compared to its predecessor, the HOERBIGER Type 4 roof actuator, both the necessary instal- Compared to the prototypes of the Type 6 power lation space in the car body and the weight have unit product family—the designation “Type 6” been significantly reduced with the Type 6 F 33 denotes the 6th generation of hydraulic roof hydraulic power unit. The acoustics values are drives—the hydraulic system bearing the inter- best-in-class. nal type designation “F 33” was considerably refined. The many hidden innovations of the Type 6 product family will be almost imperceptible to the convertible aficionado. For example, new materials were used for seals and other polymer components—offering considerably higher heat resistance. With this, HOERBIGER takes the cus- tomer’s more stringent demands into account. Key target markets for the convertible fitted with the Type 6 F 33 power unit are the USA, Australia and the Arabian countries—regions where the convertible tops will be exposed to higher temperatures.

One of the technical unique selling proposi- tions of the HOERBIGER hydraulic roof system is the precise synchronization of the speed of hydraulic actuators for the roof and lid drive. HOERBIGER warrants these product properties at driving speeds up to 50 km/h (31 mph) with headwind up to 50 km/h (31 mph). Actuation of the top in the production vehicles, however, is only permitted for speeds up to approximately 20 km/h (13 mph).

Proud of the success of the Type 6 F 33 power unit: Jürgen Osterried, Head of Hydraulics Testing / Richard Stegmayer, Head of Operations & Components Segment / Gerhard Messmer, Head of Business Division / Helmut Kleiber, Controlling / Krzysztof Spiehs, Head of Operations at the Bolesławiec Plant / Peter Schmied, Head of Hydraulics Series Development. 120 Business Division Automotive Comfort Systems 121

Higher earning power Pneumatic gearshift To be able to expedite the build-up of the new, In addition to approximately 7,000 square despite declining sales support system: non-automotive portfolio with the necessary dili- meters (over 75,000 square feet) of finished pro- gence, the Operations & Components Segment duction space for hydraulic roof drives and pneu- HOERBIGER had already considered the decline Successful market launch combines not only responsibility for Production matic gearshift support systems, the Boleslawiec in sales that was anticipated for 2013 as a result and Procurement, but also Development and location has another 2,000 square meters (over of discontinued models in its sales planning In the Transmission Comfort Segment, the devel- Industrial Engineering for the corresponding 21,000 square feet) available for non-automotive for the Automotive Comfort Systems Business opment of additional fields of expertise that components. applications. Division. While it was already clear at the begin- began in 2012 continued in 2013. As a result, ning of 2013 that the number at the end of the an all-new gearshift support system developed by Effective January 2014, distribution of the non- New prospects also opened up for year would be a decrease in sales, senior man- HOERBIGER for heavy-duty commercial vehicles automotive components and system from the the Auburn location at the end of agers and employees of the Automotive Comfort was successfully launched. Automotive Comfort Systems Business Division 2013—both in the automotive and Systems Business Division demonstrated great has been assigned to the Strategic Business Unit in the non-automotive fields. The commitment in optimizing processes and drasti- Automation Technology and its likewise newly highly motivated managers and cally lowering costs. Compact powerhouses for created Compact Motion Technology Business employees are fighting with exem- non-automotive applications Segment. plary dedication for new contracts As a result, the Business Division for the Auburn plant in the highly managed to again lower the break Despite current favorable new orders in Europe competitive North American market even point and to ultimately close and the opportunity to generate new contracts 2014: New momentum with record performance in terms of out the fiscal year with higher rev- in North America, HOERBIGER is facing the for powerful production quality and productivity. The site in Auburn is “Developing the new Operations & enue figures despite declining sales. challenge to offset continued stagnant demand therefore making a remarkable contribution to Components Segment, combined in the convertible business in the immediate The use new products in non-automotive appli- the success of the Business Division. with a strong Sales Department in the Strategic Business Unit Automation In addition to consistent cost man- future with product ideas for applications in new cations will open up new prospects and added Technology, will be a sustainable agement, the high efficiency of the business segments. business opportunities for the efficient but step toward entering a considerably production plants Bolesławiec and un­derutilized Bolesławiec production site as broader market environment.” Auburn decisively contributed to With this in mind, the Automotive Comfort well as for the Auburn plant. Richard Stegmayer this trend. The Automotive Comfort Systems Business Division has begun to develop Head of Operations & Components Segment “We are creating an efficient interface Systems Business Division is able to rely on a a future-oriented portfolio of smart microfluid HOERBIGER Automotive Komfortsysteme GmbH between Sales, Industrial Engineering, team of highly motivated managers and staff in components for automotive and non-automotive Operations and Purchasing both for both locations. applications, based on the know-how it has our new non-automotive business and for our automotive core business, accumulated over the years as well as based which continues to be important for us.” The dedication of the employees in Auburn was on the expertise in compact hydraulic systems, particularly high in 2013, having lost a major which can be used autonomously at the instal- Gerhard Messmer contract due to the phase-out of the series pro- lation site. Head of the Business Division Automotive Comfort Systems duction of a convertible model that was very popular in the U.S. market. They are presently With this goal in mind, the new Operations bidding intensively for an attractive new contract & Components Segment was created at the in North America. beginning of 2014, to complement the existing Automotive Hydraulics and Transmission Comfort Segments. 122 History 123

hoerbiger— Hanns Hörbiger, After the destruction of the Vienna production inventor and pioneer plant during the last year of the Second World In 1895, the steel plate valve invented by Hanns War, and the sudden passing of Alfred Hörbiger, group with Hörbiger was patented. The valve plate opens or his wife Martina Hörbiger managed to rebuild closes; it opens when the gas pressure is high the plant. enough, and closes as long as the spring pressure is higher than the gas pressure. The company’s product range, which until then was primarily comprised of compressor valves The Hörbiger steel plate valve enabled the and controllers, was expanded by new busi- FAMILy TRADITION advancement of blast furnace technology and ness segments based on the core competencies paved the way for the invention of modern piezo- in the fields of fluid technology and stamping Hanns Hörbiger. chemistry. This made it one of the key tech- technology. Initially, HOERBIGER was active in nologies for the industrial development at the the pneumatics field. Just a short time later, it beginning of the 20th century. established new plants in Germany—in Schongau and neighboring Penzberg—for the produc- In 1900, Hanns Hörbiger, together with the tion of steel disks for passenger car automatic engineer Friedrich Wilhelm Rogler, founded transmission as well as for friction linings. The an engineering office in Budapest. This office Pneumatics Division was then supplemented was relocated to Vienna in 1903. In the years with the hydraulics segment. thereafter, Hanns Hörbiger devoted himself to continually enhancing the steel plate valve he Reconstruction had invented. His office issued licenses for use and globalization of the technology to business partners domesti- Even before the Second World War, HOERBIGER cally and abroad. sales branches were established in Germany, Alfred Hörbiger. Italy, and Great Britain. In 1947 Martina In 1925, the engineering office became Hörbiger resumed international business rela- HOERBIGER & Co. trading company, headquar- tions, first within Europe, then later in the tered in Vienna. Americas, Africa and Asia.

Alfred and Martina Hörbiger By the end of the 1950s, HOERBIGER had built In 1931, Alfred Hörbiger, the oldest son of the its own distribution system in North America, fol- company’s founder, started the in-house produc- lowed in 1963 by the founding of HOERBIGER tion of valves in Vienna-Simmering. Between Corporation of America and the development of 1925 and 1945, a total of 171 patents were a production operation. In 1970, HOERBIGER granted for HOERBIGER & Co. for inventions and Nippon K.K. in Japan was founded, and initial developments in the field of compressor valves contacts were established with Taiwan, Korea, and controls. and China. Martina Hörbiger. 124 TOGETHER 125

Based on the com- to Zug in 2000. The Group has since been man- pressor valve develop- aged by the Board of Directors of HOERBIGER together— ment and production Holding AG and the Executive Board. expertise, in 1971 HOERBIGER decided Performance, Excellence & Focus to systematically build In 2003, HOERBIGER held its first interna- a worldwide network of tional survey of all employees regarding cor- guideline on service entities for the porate culture. The results formed the basis maintenance and repair of HOERBIGER’s corporate values: Pioneering of reciprocating com- Spirit, Courage, Closeness, and Fairness. pressors. This put the The HOERBIGER umbrella brand displayed company clearly ahead a new, modern logo in addition to the motto HOERBIGER Board of Trustees 2013: Dr. Andreas Hünerwadel, of the competition. “Because performance counts”. cooperation Dr. Gerd Unterburg (Vice President), Christiana Hörbiger (Vice President), Dr. Marcus Flubacher (President), Dr. Rudolf Huber. In 2005 the corporate structure was system- atically strengthened and expanded. With On the way to the Group the expanded corporate functions Human August 1989: Martina Hörbiger, owner of the Resources, Communications, Research­ & and leadership group of companies, died at the age of 87. She Develop­ment, Business Development and IT, the bequeathed the challenge of realigning the Group enhanced its profile, both internally and corporate structure—which in the years prior externally. was centered predominantly around her—to the new management team, which she had In 2006, the HOERBIGER Group replaced its appointed prior to her passing together with prior public image as a mere group of companies. the Board of Trustees of the HOERBIGER The three Strategic Business Units as well as the It is the people at HOERBIGER who assure the It is these principles that make HOERBIGER a Foundation. numerous foreign HOERBIGER entities, which success of the company. This has always been successful company around the globe, and at previously operated in the market as independent the case, and applies even more so today. Their the same time an extremely attractive employer. As a result, the group of companies was incre- companies, increasingly began to present their excellent achievements move the company ahead mentally reorganized after 1992. Having pre- portfolio and services under the HOERBIGER and safeguard its future. PEOPLE AT HOERBIGER viously been regionally organized in a variety umbrella brand in the following years. We succeed because our people take responsibil- of individual entities, business activities were Conformity is undesirable at HOERBIGER. ity for HOERBIGER’s success. We are successful assigned to the three newly formed Strategic In 2007 the HOERBIGER Group formulated a As a trendsetter in technological niche markets, because we believe in success. Business Units: Compression Technology, new vision: “We set standards”. In 2009 and HOERBIGER is an enterprise in which new ideas Automation Technology, and Drive Technology. 2010 the worldwide management team devel- need fertile ground. We are interested in creative, entrepreneurially At the same time, the oil, gas and process oped a new mission to accommodate the growth thinking minds that develop new ideas and then industries, the mechanical and plant engineer- of the Group: EXCELLENCE & Focus. With their dedication and performance, our implement them, clearly and with structure; peo- ing industry, and the automotive industry were employees have allowed us to rise from a family ple who are willing to pull their weight, who are defined as strategic business segments. In 2012 the Executive Board formulated a new business with European roots to an international “Hands on!” and who are a part of HOERBIGER cooperation and leadership guideline, titled technology group. in every situation. 1995 saw further reorganization. In order to “TOGETHER”. support continuing growth, the existing group Men and women, of varying ages, from very dif- We keep our promises. Once we set goals, we of companies, which was run by HOERBIGER In 2013, the Executive Board inaugurated ferent origins and with equally multifaceted cul- are committed to achieving these goals—with International in Vienna and their management, the global STREAM program. The objective is tural backgrounds, work together at HOERBIGER all of our strength, determination, and abilities. was restructured as a Group with a holding to establish a worldwide standardized process every day. We value this diversity. It goes without company and a central financial organization to logic for the HOERBIGER Group inside of three saying for us. We want to work with people who share the same be headquartered in Switzerland in the future. years, utilizing a highly tuned, efficient and view and fit the corporate mold. All the necessary conditions were created in flexibly structured IT architecture. Only an IT We believe that a modern guideline on coopera- Switzerland for developing the group of com- infrastructure that is aligned with our business tion and leadership by a cosmopolitan company DECISION AND CHANGE panies into a fully integrated corporate Group. processes will enable smooth teamwork in day- such as HOERBIGER need not focus on common- HOERBIGER grants great decision-making lati- to-day operations. place conceptions of leadership and cooperation. tude not only to senior managers, but to each HOERBIGER Holding AG in Rotkreuz, and every employee. This is the reason why our Switzerland, became the umbrella organization In 2014, the HOERBIGER brand encompasses We attach much more importance to the guid- senior managers and employees think like entre- of the group of companies in 1997 and moved over 130 locations in 54 countries. ing principles that shape our corporate culture. preneurs. 126 hoerbiger products 127 hoerbiger PRODUCTS

The freedom with which we are allowed to inde- a personality which empowers them to assume pendently make decisions motivates us. responsibility in every respect—for themselves, for their families, and for their duties on the job. AT A GLANCE Independent action is therefore desired, regard- less of the hierarchical levels or functions. When COMMUNICATION we are convinced that things require change, we Transparent communication is important to us. Strategic Business Unit Compression Technology Core Competencies do not hesitate but act. Clear agreements form the basis for our coopera- tion—internally and externally. Key components for Key components for Key components for n Fluid technology By being allowed to make independent deci- reciprocating compressors rotary compressors air brake, refrigeration n Mechanics sions and changes within a broad scope, each We deal with each other openly and honestly. n Valves n Valves and air-conditioning n Thermo and gas dynamics employee bears individual responsibility toward When we hold discussions among colleagues, n Rings and packings n Controls compressors n Metallurgy the company. we provide feedback to each other. n Control and n Reed valves n Polymer technology monitoring systems n Cylinder head units n Control engineering It is therefore important to us that decisions When we share criticism with each other, we n Electronics always have a lasting effect and are reliable. do not consider this to be a manifestation of a n Software lack of appreciation or recognition, but always a Key components for Safety products Services for compressors, RESPONSIBILITY challenge to achieve even better results. industrial gas engines n Explosion relief valves turbines, and industrial gas It is important to us to always keep the well- n Ignition systems and check valves engines being of the entire Group in mind, aside from Our senior managers provide comprehensive n Controls and instruments n Spare parts the responsibility for the specific task at hand. information to the best of their knowledge and n Engine management n Repair belief. They explain decisions so that all employ- systems n Upgrade and revamp We value diversity of knowledge, creativity and ees understand what is involved. n Fuel valves and actuators n System operation opinions because we are convinced that we can deliver peak performance both as individuals LEADERSHIP and as a team. We count on a stable bond between senior man- Strategic Business Unit Drive Technology Core Competencies agers and employees. This is based on respect, Synchronizer systems for Design and testing of n Tribology Cooperation across the boundaries of Strategic which in the truest sense of the word was devel- manual and double-clutch synchronizer systems n Design and testing expertise Business Units, functions and regions helps us to oped over long periods of cooperation, good com- transmissions n Sophisticated metal forming successfully cope with complex topics and tasks. munication, interest in different opinions, and n State-of-the-art machining We solve problems that stand in our way by every- competent interaction with differing cultures. one contributing unique skills and experience. Employees expect senior managers to be cred- Strategic Business Unit Automation Technology Core Competencies When things do not quite go the way they should, ible and demonstrate leadership conduct with Smart actuators for Compact Motion Technology Testing and n Hydraulics we expect each employee to take the initiative, honest intentions. They have the right to learn control valves for mechanical and plant diagnostic systems n Piezotechnology if necessary across hierarchical levels. Mistakes, something from their managers and to partici- engineering n Electronics and at times even failures, do not throw us off pate in their managers’ responsibility by way of n Sensor systems our course. They inspire us to search for creative delegation for the Group as a whole. n Software and innovative new approaches to solutions. n Control engineering In order to develop strategically attractive busi- HOERBIGER cannot relieve any employee of the ness ideas and translate them into long-term responsibility for their own plans for life and corporate success, our senior managers set tar- Business Division Automotive Comfort Systems Core Competencies a balanced harmony between work and family. gets with their employees which challenge their However, we especially advocate that young peo- personal potential and encourage their individual Hydraulic comfort systems Pneumatic comfort systems n Hydraulics ple, during their training phases with us, develop development. for passenger cars for commercial vehicles n Pneumatics 128

Company­ Locations

HH = hoerbiGER Holding Algeria KT TURBOTECH Engenharia, LTDA. AT HOERBIGER (Wuxi) Automation KT = compression Technology KT HOERBIGER Service Algerie E.U.R.L. S Travessa São Judas Tadeu, 189 SP Technology Co., Ltd. AT = automation Technology S 13, Rue Mohamed Semani Recreio Ipitanga Science & Technology Business Incubator, AN = drive Technology Hydra 16035, Algiers Lauro de Freitas, Bahia, Anzhen Xidong Park, Xishan EDZ AK = automotive Comfort Systems CEP42.700-000 214105 Wuxi Argentina IO = internal Organization / Corporate KT HOERBIGER de Argentina S.A. Bulgaria AN HOERBIGER Drive Technology LP = large Production S Bejarano 575 KT Hoerbiger Zandov s.r.o. – LP (Changzhou) Co. Ltd. SP = small Production Neuquén, Argentina Q8302BWK S representative office Building No. 7, GDH Industrial Park, S = sales and Service zh.k. Hristo Smirnenski, 16 Chuangye Rd., CND KT HOERBIGER de Argentina S.A. bl. 27A, vh. B, ap. 20 Changzhou S Reconquista 2458 – El Talar Sofia Buenos Aires, Argentina B1618BDX Colombia Canada KT HOERBIGER de Colombia LTDA. Australia KT HOERBIGER (Canada) Ltd. S Carrera 85D # 46A 65 KT HOERBIGER Australia Pty Ltd. S Bay 7, 2616 – 16th Street N.E. Bodega 19, Complejo Logistico S 17-19 David Street Calgary, Alberta T2E 7J8 San Cayetano VIC 3175 Dandenong, Victoria Bogota KT HOERBIGER (Canada) Ltd. KT HOERBIGER Australia Pty Ltd. S 330 Brunel Road Czech Republic S Unit 4, 17 Alexandra Place Mississauga, Ontario L4Z 2C2 KT HOERBIGER Žandov s.r.o. QLD 4172 Murarrie, Queensland SP Nádrazni 10 KT HOERBIGER (Canada) Ltd. East 47107 Žandov Austria S 9304 – 111th Street KT HOERBIGER Kompressortechnik Fort St. John, British Columbia V1J 7J5 Ecuador IO Holding GmbH KT HOERBIGER del Ecuador, S.A. TechGate Tower, Donau-City-Strasse 1 KT HOERBIGER (Canada) Ltd. S Calle de Los Arupos E1-203 1220 Vienna S 10841 – 78th Avenue Uniparque Bodega #4 Grande Prairie, Alberta T8W 2L2 Quito KT HOERBIGER Ventilwerke GmbH & Co KG LP Braunhubergasse 23 KT HOERBIGER (Canada) Ltd. Egypt 1110 Vienna S 441 South Avenue KT HOERBIGER Service Egypt, LLC Spruce Grove, Alberta T7X 3A7 S 20 El Sad El Aly St HH HOERBIGER Deutschland Holding GmbH, Maadi, Cairo IO Zweigniederlassung Wien KT HOERBIGER (Canada) Ltd. Information Technology S 53119 Highway 47 France Guglgasse 15-17, Bauteil 3a, 6. Stock Edson, Alberta T7E 3E9 KT HOERBIGER France SAS 1110 Vienna IO Rue de la Batterie AN HOERBIGER FineStamping Inc. 67118 Geispolsheim Belgium SP 555 Parkside Drive KT HOERBIGER Turbomachinery Services Waterloo, Ontario N2L 5E7 KT HOERBIGER France SAS S B.V.B.A. S 140 Rue de 12ème Régiment de Zouaves Zavelstraat 7 Chile Z.I. de Courtine Mourre Frais B-9190 Stekene KT HOERBIGER S.A. Agencia en Chile 84091 Avignon Cedex 09 S El Roble 748 Bolivia Recoleta KT HOERBIGER France SAS KT HOERBIGER de Argentina S.A. Santiago de Chile S Parc d‘Activité de la Route des Lacs S Filial Bolivia · Av Beni 250 entre 4 y 5 anillo B.P. 220 Santa Cruz de la Sierra China 27102 Val de Reuil KT HOERBIGER (Shanghai) Co., Ltd. Brazil LP 39 He Fa Road, Caohejing Hi-Tech Park Germany KT HOERBIGER do Brasil, LTDA. 200233 Shanghai HH HOERBIGER Deutschland Holding GmbH S Rua Osasco, 1020 IO Bernbeurener Strasse 13 Rod. Anhanguera, Km 33 KT HOERBIGER Valves (Changzhou) Co., Ltd. 86956 Schongau Sao Paulo, Cajamar Brasil 07750-000 SP 1A–1C Building, GDH Industrial Park 16# Chuang Ye Road, Xinbei District HH HOERBIGER Immobilien GmbH 213033 Changzhou, Jiangsu IO Bernbeurener Strasse 13 86956 Schongau Company Locations CODE OF CONDUCT OUR COMMITMENT to HOERBIGER CORPORATE STRUCTURE

INTEGRITY aND Board of directors Dr. Marcus Flubacher, President / Dr. Gerd Unterburg, Vice President Dr. Rudolf Huber / Dr. Manfred Reichl / Egbert Appel HH HOERBIGER Deutschland Holding GmbH AN HOERBIGER Penzberg GmbH KT Hoerbiger India Private Ltd. Kazakhstan New Zealand South Africa Ukraine KT HOERBIGER Service Inc. IO Learning Center Europe LP Seeshaupter Strasse 33 IO Kompression Technology Technical Services KT Hoerbiger Service Kazakhstan LLP KT HOERBIGER New Zealand Ltd. KT HOERBIGER S.A. (Pty.) Ltd. KT HOERBIGER Service Ukraine, LLC S 12700 West Highway 80 East COMPLIANCE Pürschlingstrasse 4 82377 Penzberg 3rd Floor, Saffire Park, Galleria No. 4 S 48, Azattyk, office 502 S C1-37 Greenmount Drive East Tamaki S 9, Fuchs Street, Alrode, 1450 S Eurasia Business Center, Odessa, Texas 79765 86971 Peiting Old Pune-Mumbai Road, Shivajinagar Atyrau Auckland NZ MEA Po Box 17844, East 75 Zhylyanska St., 11th Floor AK HOERBIGER Automotive Pune 411005 Randhart 1457 01032 Kyiv KT HOERBIGER Service Inc. KT HOERBIGER Kompressortechnik GmbH SP Komfortsysteme GmbH Korea (South) Norway S 2828 South Utah Ave We run our businesses based on our We manage our company by striving for We treat our suppliers fairly. We expect our Executive Board LP Im Forchet 5 S Martina-Hörbiger-Strasse 5 KT Gala Precision Technology Pvt. Ltd. KT HOERBIGER Korea Ltd. KT HOERBIGER Skandinavia Holding AS Spain United Arab Emirates Oklahoma City, Oklahoma 73108 Corporate values: Pioneering Spirit, highest standards of business excellence: suppliers to strive towards the same high 86956 Schongau 86956 Schongau LP Plot No. 295, Village Vadavali S Songpa-Gu Karak-dong 73-3 S Glynitveien 7, Ski Logistikkpark KT HOERBIGER Iberica Holding S.L. KT HOERBIGER Service Middle East FZE Dr. Martin Komischke, Chairman Bhiwandi-Wada Highway KR Tower Fl 8 West 1400 Ski IO Calle Río Ter 2 S Jebel Ali Free Zone, P.O. Box 17153, KT HOERBIGER Service, Inc. Courage, Fairness and Closeness. because performance counts. standards for business conduct and prod- Charles Friess / Norbert Gauß / Johann Hipfl / Dr. Siegmar Schlagau / Gerhard Wagner KT HOERBIGER Service GmbH Hungary At Post Met. Taluka Wada, Masurne Road Seoul Korea 138-160 West Polígono Industrial El Nogal Road 626 S 17250 New Lenox Road, Suite 2 These values are the foundation of uct quality that we have set for ourselves. S Hanns-Hörbiger-Strasse 10 KT HOERBIGER Service Hungaria Kft. Thane 421312 Peru 28110 Algete Dubai Joliet, IL 60433 West 67133 Maxdorf S Bagoly u. 7. KT HOERBIGER Korea Ltd. KT HOERBIGER Peru our Corporate Culture and HOERBIGER’s We conduct our business with respect for East 2120 Dunakeszi Indonesia S 355-11 Yeocheon-Dong S Av La Encantada Nº 1010 Ofic. 810 KT HOERBIGER Iberica S.A. United Kingdom Great Britain KT HOERBIGER Service, Inc. success. human dignity, in recognition of human We protect proprietary business informa- KT HOERBIGER Service GmbH KT PT. HOERBIGER Kompresotama Indonesia Nam-Gu Santiago de Surco S Calle Río Ter 2 and Northern Ireland S 923 Foster Road rights, and in accordance with applicable tion, private data, and intellectual prop- S Uetzinger Strasse 4 India S Jl. Jababeka II J Blok CC No. 28 Ulsan Lima West Polígono Industrial El Nogal KT HOERBIGER UK Ltd. Casper, WY 82601 West 29664 Walsrode KT HOERBIGER India Private Ltd. Kawasan Industri Jababeka 28110 Algete S Edderthorpe Street, P.O. Box 237 Every day we are faced with decisions about laws. erty rights. Proprietary company informa- IO 3rd Floor, Saffire Park, Galleria No. 4 Pasir Gombong, Cikarang Utara Kuwait KT HOERBIGER Peru West Bradford BD3 9RB KT HOERBIGER Service, Inc. what is right or wrong. Even in complex tion and data may be released to third AT HOERBIGER Automatisierungstechnik Old Pune-Mumbai Road, Shivajinagar Bekasi, West Jawa 17834 KT HOERBIGER Service Middle East FZE S Manzana A Sweden S 504 Connecticut Street, Unit B&C IO Holding GmbH Pune 411005 S Kuwait Office Zona Industrial KT HOERBIGER Control Systems AB USA Rock Springs, WY 82901 situations our pace is fast. For this the We are committed to economically and parties only with prior authorization. Südliche Römerstrasse 15 Iran MEA PO Box 26212, Safat 13123, Kuwait Talara Alta-Pariñas IO Förradsgatan 5 KT HOERBIGER America Holding, Inc. 86972 Altenstadt KT HOERBIGER India Private Ltd. KT HOERBIGER Pars Talara, Piura S 66222 Amål IO 1358 West Newport Center Drive KT HOERBIGER Service Inc. Code of Conduct provides definite and environmentally sustainable business Strategic Business Unit Strategic Business Unit Strategic Business Unit Business Division Corporate Corporate SP (Domestic Division) S No 25, 23rd Fathh, Fathh Highway Libya Deerfield Beach, Florida 33442-7777 25057 Anza Drive Compression Technology Drive Technology Automation Technology Automotive Comfort Systems Finance / Controlling Human Resources S clear directions. practices. We keep accurate records, and guaran- AT HOERBIGER Automatisierungstechnik Gat 301/1, 312, 313, Village Kondhapuri, Tehran 1387644781 KT Poland HOERBIGER Service Nordic AB Johann Hipfl Thomas Englmann Norbert Gauß Dr. Martin Komischke Charles Friess Gerhard Wagner Hoerbiger Services Libya KT Santa Clarita, California 91355 tee complete reporting of financial and interim LP GmbH Tal: Shirur S Motamar Al Karama KT HOERBIGER Polska Sp. z o.o. S Garvansväg 9 KT HOERBIGER Service Latin America, Inc. The Code of Conduct affirms our commit- We provide safe working conditions. operating information to management, Südliche Römerstrasse 15 Pune 411006 KT HOERBIGER Kish (KFZ) MEA Ghote Al Chaal, Near Al Raai Mosque S ul. Rzymowskiego 30, nr lok. 210 771 36 Ludvika IO 1358 West Newport Center Drive KT HOERBIGER Service Inc. 86972 Altenstadt S Unit 3 Office Floor, Paniz International PO Box 12435, Tripoli East 02-697 Warszawa Deerfield Beach, Florida 33442-7777 S 12204 Fairmont Parkway ment to Business Excellence. It is a com- shareholders, and third parties. KT HOERBIGER India Serial Technology Pvt. MEA Bazar Switzerland La Porte, Texas 77572 mitment which we give to our customers, We continuously develop the abilities of as of 4/1/2014 AT HOERBIGER Automatisierungstechnik SP Ltd. Kish Island Lithuania AK HOERBIGER Automotive Sp. z o.o. HH HOERBIGER Holding AG KT HOERBIGER Corporation of America Inc. IO Holding GmbH Gat 301/1, 312, 313, Village Kondhapuri, KT UAB HOERBIGER VIENYBE LP ul. Modłowa 10 IO Baarerstrasse 18 LP 3350 Gateway Drive AK HOERBIGER Automotive Comfort Systems, and to each other: We will act with personal our employees, and evaluate performance We act with integrity and honesty at all TechGate Stuttgart, Meitnerstrasse 8 Tal: Shirur Italy S Kaunostr. 120. 59-700 Boleslawiec 6304 Zug Pompano Beach, Florida 33069-4864 LP LLC integrity and in compliance with legal and objectively. times. We will declare potential conflicts 70563 Stuttgart Pune 412209 KT HOERBIGER Italiana S.p.A. East 20115 Ukmerge S 284 Enterprise Drive ethical principles at all times. of interest. We will protect the company’s S Via dell’Elettronica, 8 Romania HH INTERHOERBIGER Finanz AG KT HOERBIGER Corporation of America Inc. Auburn, Alabama 36830 AT HOERBIGER Micro Fluid GmbH KT HOERBIGER India Serial Technology Pvt. West 37139 Verona (VR) Malaysia KT S.C. HOERBIGER SERVICE ROMANIA IO Baarerstrasse 18 SP 1212 Milby Street We show mutual respect as we collaborate assets, and will not use our position at SP Borsigstrasse 11 S Ltd. KT HOERBIGER KT Malaysia Sdn Bhd. S S.R.L. 6304 Zug Houston, Texas 77023 Venezuela With our Code of Conduct we also recog- across cultures. We recognize the freedom HOERBIGER for personal gain. 93092 Barbing Ramshree Apartment 1206/30A, 3rd floor, Japan S PT 15675 & 15676 East Str. Budvar Nr. 31/A KT HOERBIGER de Venezuela, S.A. Opp Sambhaji Park KT HOERBIGER Nippon KK Kawasan Perindustrian Jakar III 535600 Odorheiu Secuiesc KT HOERBIGER Service GmbH KT HOERBIGER Engine Solutions S Avenida Principal de la Urbanización nize our social responsibilities as a globally of association of our workforce. HH HOERBIGER Elektronik GmbH Smt Ramabai Shrinivas Kawale Path, IO 87-4 Honjo 24000 Kemaman Terengganu S Gewerbestrasse 115 LP Altronic, LLC Los cortijos de Lourdes active company. We respect and support We take pride in HOERBIGER. We protect IO Justinus-Kerner-Strasse 7 Jangali Maharaj Road 286-0114 Narita Russia West 5314 Kleindöttingen 712 Trumbull Avenue Centro Empresarial Bravasol, PH4-A 72119 Ammerbuch Pune 411004 Mexico KT HOERBIGER Ltd. Girard, Ohio 44420 Caracas the goals as of relevant international con- We conduct all our business with integrity the good reputation of our company as KT HOERBIGER Nippon KK KT HOERBIGER Servicios Técnicos S.A. de C.V. S 1. Arkhangelsky lane Taiwan ventions such as the United Nations Global and transparency. We oppose corruption. well as the image and the value of the AN HOERBIGER Antriebstechnik Holding KT HOERBIGER India Private Ltd. S Narita Office S Calz. de la Naranja 166 East Moscow, 101000 KT HOERBIGER Taiwan Ltd. KT HOERBIGER Engine Solutions KT HOERBIGER de Venezuela, S.A. Compact. HOERBIGER brand. IO GmbH IO Durvankur Bhavan Sumitomo Seimei Narita Bldg., 7F, Fracc. Ind. Alce Blanco S 4F, 58, Lane 316, Rueiguang Road, LP Altronic, LLC S Avenida Intercomunal entre Tigre-Tigrito Bernbeurener Strasse 13 Priyanka Nagari, Gat No. 2324, Wagholi 969 Hanazaki-cho Naucalpan, Estado de México, C.P 53370 Saudi Arabia Neihu District, Taipei 11492 2350 Crist Road El Tigre, Estado Anzoátegui We deliver superior products and services 86956 Schongau Pune 412207 286-0033 Narita KT HOERBIGER Service Middle East FZE 111 Taipei Garland, Texas 75040 All HOERBIGER employees must be famil- to our customers. We support free and fair WE LISTEN AND WE ACT KT HOERBIGER de México, S.A. de C.V. S Industrial Machinery Establishment AN HOERBIGER Antriebstechnik GmbH Werk 1 KT HOERBIGER India Private Ltd. KT HOERBIGER Nippon KK S Calle Fidencio Trejo #324 Esq. Ignacio MEA P.O. Box 36079 KT HOERBIGER Taiwan Ltd. KT HOERBIGER Service Inc. iar with the Code of Conduct and follow its competition, and we comply with relevant We accept the challenges of ethical con- LP Bernbeurener Strasse 13 S Plot No 315/1, GIDC Estate S Service Center Ramírez, Jubail Industrial City 31961 S 12-2 Zhong Her Road, Hai Feng Village IO 7042 Revere Parkway, Suite 400 letter and spirit; the Code applies world- competition laws. duct. In critical situations we will support 86956 Schongau Dist. Vadodara 129-1 Houma-Kanahori-Mae, Col. El Maestro, Reynosa, Tamaulipas Mai Liao District 63859 S Centennial, Colorado 80112 2013: Ranoli 391350 Shibayama, Sanbu-gun México C.P. 88770 Singapore Yun Lin County wide. We are convinced that our custom- each other to keep our commitments to AN HOERBIGER Antriebstechnik GmbH Werk 2 289-1622 Chiba KT HOERBIGER KT Asia Holding Pte. Ltd. KT HOERBIGER Service Inc. ers and other business partners will honor We take due care in the selection of move HOERBIGER forward. The best year in the company’s history LP Martina-Hörbiger-Strasse 5 KT HOERBIGER India Private Ltd. KT HOERBIGER de México, S.A. de C.V. IO 77 Joo Koon Circle Thailand S 6640 Exchequer Dr. that we conduct our business with personal our business partners. We comply with 86956 Schongau S 71/25 Stonedge Towers, 1st Avenue KT HOERBIGER Nippon KK S Plaza Mural Local 11-B Planta Alta 629097 Singapore KT HOERBIGER (Thailand) Co., LTD. Baton Rouge, LA. 70809 1st Floor, Ashoknagar S Kyushu Office Prolongacion 27 de Febrero No. 2991 S 304 Sirithhorn Road, Kwaeng Bangplad integrity and in compliance with legal and export controls and anti-money laundry AN HOERBIGER Antriebstechnik GmbH Chennai 600083 2-7-3-702 Maizuru, Chuo-Ku Tabasco 2000, Villahermosa Tabasco KT HOERBIGER KT Asia Services Pte. Ltd. Khet Bangphad, Bangkok 10700 KT HOERBIGER Service Inc. HOERBIGER Group 2013 Change in % 2012 2011 2010 2009 ethical standards. regulations. IO Versuch / Prüffeldentwicklung 810-0073 Fukuoka S 77 Joo Koon Circle S 12 McCullough Drive, Bay #4 Sales in million euros 1,052.3 – 0.4 1,056.9 1,048.1 948.2 771.9 Pürschlingstrasse 4a KT HOERBIGER India Private Ltd. Netherlands 629097 Singapore KT HOERBIGER (Thailand) Company Ltd. New Castle, Delaware 19720 Equity ratio in % 62.0% – 55.4% 50.0% 43.0% 43.5% 86971 Peiting S Flat No -3A, 3rd Floor, 153A Diamond KT HOERBIGER Nippon KK KT HOERBIGER Benelux B.V. S 136/72 Moo 9 Laemthong Road Harbour Road S Kansai Sales Office S Nijverheidsweg 25 Slovakia Tambol Tungsukla, Amphar Sriracha KT HOERBIGER SERVICE Inc. Employees as of 12/31 6,388 - 4.7 6,704 6,826 6,739 6,538 AN HOERBIGER SynchronTechnik GmbH & Kolkata -700034 Imon Kobe Bldg. 95 Edo-Machi Chuo-ku 6422 PD Heerlen KT HOERBIGER ŽANDOV s.r.o. Chonburi 20230 S 14425 Torrey Chase, Suite 340 LP Co. KG 650-0033 Kobe S organizacˇná zložka Houston, Texas 77014 Lembacher Strasse 2 KT HOERBIGER India Private Ltd. Nigeria East Cementárská 15 Turkey Sales by Strategic Business Unit 71720 Oberstenfeld S 102, Ansasls Tower, Plot No-17, Block -G1, KT HOERBIGER Nigeria 900 31 Stupava KT HOERBIGER Kompresyon Teknolojileri KT HOERBIGER Service Inc. in million euros 2013 Change in % 2012 2011 2010 2009 Community Centre, Vikas Puri S AOS Orwell, Plot 272, Trans Amadi, S San. ve Tic. Ltd. ¸S ti. S 220 N Country Estates Road Delhi 110018 Industrial Layout East Barbaros Mh. Ihlamur Sk. No:1 D:113 Liberal, Kansas 67901 Compression Technology 572.0 – 0.3 574.0 546.9 497.0 438.5 PMB 029, Port Harcourt 34746 Atas¸ehir, Istanbul Drive Technology 347.5 + 2.7 338.5 344.7 301.3 224.8 Automation Technology 59.4 + 4.6 56.8 58.8 54.3 41.4 Automotive Comfort Systems 66.4 - 16.5 79.5 90.2 95.6 67.2 HOERBIGER Yearbook 2013/14

People table of contents Foreword of the Board of Directors 2

we embody diversity. CEO Statement 20

Highlights 2013 28

People of HOERBIGER 38

Group Profile 56

Strategic Business Unit Compression Technology 64

Strategic Business Unit Drive Technology 94 credits Publisher initiatives Strategic Business Unit Automation Technology 106 HOERBIGER Holding AG Baarerstrasse 18 6304 Zug, Switzerland we deliver performance. Business Division Automotive Comfort Systems 116 Telephone: +41 (0) 41 560 10 00 Fax: +41 (0) 41 560 10 11 HOERBIGER—Group with Family Tradition 122 Email: [email protected] www.hoerbiger.com

Responsible Together— Board of Directors Guideline on Cooperation and Leadership 125 Dr. Marcus Flubacher (President) HOERBIGER Products at a Glance 127 Executive Board Dr. Martin Komischke (CEO and Chairman) Company Locations 128

Concept and Project Lead Corporate Communications Ludwig Schönefeld standards

Text Ludwig Schönefeld Highlights: Simon Schmid we love innovations. People of HOERBIGER: Jens Geisel

Consulting, Project Management and Production Mensalia Unternehmensberatungs GmbH, Vienna, Austria

Pictures People: Ludwig Rusch, Manfred Klimek Board of Directors: Markus Meienberg Concept pages: Ludwig Rusch, Thomas C. Robison Page 20-23 kindly provided by MND Gas Storage a.s. Facility Uhˇrice and the Vienna Airport Highlights: Marcel Billaudet, Hans-Helmut Herold, HOERBIGER Archive Products: Nikolaus Schäffler, Marcel Billaudet 2013/b ook 14 Translations Kerstin Roland Maintal Translations, Inc., Virginia Beach, VA, USA Year ER Layout Graphische Gestaltung im Erdgeschoss GmbH, I G Vienna, Austria B Cover image: Dr. Peter Dolovai / Ipeleng Mabusela / Klaus Stachel / Gotthard Gawens / Dana Larisa Lazar / Printed by

AV+Astoria, Vienna, Austria AG16IM011AE201404 H OER Dr. Josef Leitner / Dietmar Artner / Krzysztof Spiehs / Nina Hirsch / Carolina Aponte