Rheinmetall Maintains Its Two-Pillar Strategy Düsseldorf

2013

The latest news from the Rheinmetall Group

For maritime markets Searching for suitable managers worldwide Rostock-based MarineSoft is an internation- KSPG’s HR-International function established at the beginning of 2012 was created ally renowned maritime training and simu- to introduce central HR standards at the group’s foreign subsidiaries, and to promote lation software supplier with its main focus and underpin international networking between colleagues abroad. Angela Stoffers on ship machinery plants (see pages 6 + 7). has been entrusted with the challenging task of managing this job (see pages 12 + 13). 2012 successful despite diffi cult market environment Rheinmetall maintains its two-pillar strategy Düsseldorf. The Düsseldorf-based Rheinmetall group has set itself ambitious growth and earnings targets. Under its “Rheinmetall 2015” strategic program, which is primarily focused on internationalization, product innovations and cost, the company intends to expand its leading position in a range of markets on a sustainable basis. From 2015 onwards, the group also intends to generate average annual sales growth of between 3% and 5% combined with signifi cantly improved profi tability. These were the strategic targets set by Rheinmetall’s new CEO Armin Papperger on March 20, 2013, at the annual press conference on the group’s fi nancial statements in Düsseldorf. Talking to international me- dia representatives, 50-year-old Papperger emphasized that the group intends to maintain its two-pillar strategy with its Automotive and Defence sectors. Some facts and fi gures: Despite the key regions in terms of sales volumes diffi cult market environment, the Rhein- were the German home market (28%), metall group closed the 2012 fi scal year Europe excluding Germany (40%), fol- successfully. With consolidated sales of lowed by Asia (16%) and North and E4,704 million, income exceeded that Central America (10%). At E301 million generated in the previous fi scal year (previous year: E354 million), earnings by E250 million or approximately 6% before interest and taxes (Ebit) remai- (previous year: E4,454 million). Both ned at a high level. The group has to sectors contributed to this growth. At date performed better only in the record 72%, the proportion of consolidated sa- year of 2011. The Ebit margin amounted les achieved abroad was once again up to 6.4% (previous year: 7.9%). on the previous year’s fi gure (70%). The (Continued on page 2)

taxes (Ebit) of E240 million to E260 Fiscal 2013 is a million are forecast, not including restructuring costs. Before conside- ration of restructuring expenditure, year of transition the Automotive sector is expected to Düsseldorf. Fiscal 2013 will become achieve an operating result of around INTEGRATION: Rheinmetall formally a year of transition towards impro- E140 million and therefore a profi t transferred its new IdZ-ES future sol- ved profi tability for Rheinmetall due at the level of the previous year. The dier system to the German Bundeswehr to restructuring. According to CEO Defence sector is anticipated to ge- on 7 March 2013. The handover cere- Armin Papperger, the group expects nerate an operating result of around mony coincided with the 10th Armoured to achieve sales of between E4.8 E130 million in 2013. For fi scal 2014, Division’s traditional International billion and E4.9 billion. Both sectors Rheinmetall is assuming further sales Division Skiing Championship at Ruh- are expected to contribute to this growth in both sectors and expects to polding in Upper Bavaria (s. page 14). growth. Earnings before interest and see a clear improvement(Continued in on earnings. page 2) Düsseldorf. Despite stagnating de- its global network of locations and sa- fence budgets in many countries, Rhein- les and founded key joint ventures in re- metall Defence increased its sales by cent years. At E4,987 million, the order Focus on 9% in fiscal 2012 to E2,335 million (pre- backlog in the Defence sector is up 10% vious year: E2,141 million). This growth year-on-year (previous year: E4,541 mil- is the result of the first-time inclusion of lion). The order backlog includes a num- financials the Rheinmetall MAN Military Vehicles ber of large-volume projects spanning joint venture. 67% of total revenue was several years, e.g. the contract for the rated abroad rose slightly to 77% (pre- generated abroad (previous year: 63%). series production of the Puma infantry vious year: 76%). While the Mecha- The order intake increased by E1,102 fighting vehicle and the series contract tronics and Motor Service divisions million to E2,933 million, which repre- for the Boxer armoured transport vehic- contributed to sales growth, sales in sented growth of 60% (previous year: le on behalf of the Netherlands. the Hardparts division remained at the E1,831 million). This positive develop- The Automotive sector increased its previous year’s level. The Mechatro- ment is the result of a successful inter- sales by E56 million toE2,369 million nics division benefited primarily from nationalization strategy. Rheinmetall in fiscal 2012 (previous year: E2,313 the major trends towards reductions in Defence has systematically expanded million). The percentage of sales gene- CO2 and emissions.

Rheinmetall group was successful in 2012 despite difficult market environment Maintaining its two-pillar strategy

(Continued from page 1) side Europe such as in Asia and Aust- onwards. The Defence sector will then “2013 marks for us the beginning of ralia. Rheinmetall will consolidate its return to an Ebit margin of 10%. a strategic program which we will use local presence in international growth H Automotive: Rheinmetall still ex- to drive forward the development of regions and systematically pursue the pects a global growth trend in the in- our group into an international part- internationalization strategy that has ternational automotive market. Signi- ner for security and mobility. Both the been successfully implemented in re- ficant impetus for growth is primarily Defence and Automotive sectors still cent years.” From 2015, around 50% expected to come from the emerging harbor huge potential for profitable of sales are expected to be generated markets -where Rheinmetall is already growth. We are therefore maintaining with customers outside Europe. growing at a faster rate than the mar- both pillars,” exp- ket. Rheinmetall lained CEO Armin will therefore sys- Papperger. tematically pursue The company will its internationali- introduce restruc- zation strategy of turing measures recent years in the as part of “Rhein- Automotive sec- metall 2015” that tor, particularly in will impact the the Mechatronics income statement division. From for the current 2015, Automotive fiscal year by bet- intends to gene- ween E60 million rate over a third of and E80 million. Executive board: Dr. Gerd Kleinert, CEO Armin Papperger and Helmuth P. Merch. its sales outside The full saving ef- Europe. Particular fects of E55 million to E70 million each Defence will continue to benefit attention will be paid to the Chinese year will become apparent from 2015 from the ongoing need for substantial and Indian markets. onwards. The company also aims to technical modernization of a number Rheinmetall is benefiting greatly from improve free cash flow on a sustainable of armed forces. Therefore, Rhein- its focus on systems and components basis. metall will also expand its service to reduce fuel consumption and emis- H Defence: As a leading European and systems business. The aim is to sions. In particular, the mechatronics systems supplier for military techno- create a broad product portfolio with product business is growing due to logy, Rheinmetall Defence continues a balanced mix of highly-profitable emission regulations becoming stricter. to operate in a growth market – even components business and long-term, Rheinmetall will also be able to realize though national defence budgets are large-volume project business. Non- growth potential in the aftermarket busi- increasingly subject to fluctuations. recurring expenses of E20 million ness. Papperger: “However, cost structu- The strategic priority of Rheinmetall were already incurred in 2012. Rhein- res still need to be improved in the Auto- is therefore expanding its presence in metall anticipates that these mea- motive sector, particularly the European high-growth regions. Papperger: “We sures will result in annual savings of production and location structure of the see particular potential in markets out- E40 million to E50 million from 2015 Hardparts division.” (See page 3 to 5).

Newsline is a summary of the most Publisher: Rheinmetall AG Responsible: important news articles published P.O. Box 10 42 61 Peter Rücker in “Das Profil”, the company news- D-40033 Düsseldorf Editor-in-chief: Issue: May 2013 paper of the Rheinmetall group [email protected] Rolf D. Schneider

Newsline is a summary of the most important news articles published in “Das Profil”, the company news- paper of the Rheinmetall group

Publisher: Rheinmetall AG P.O. Box 10 42 61, D-40033 Düsseldorf [email protected] Responsible: Peter Rücker Editor-in-chief: Rolf D. Schneider

Issue: June 2012 prof i table growth is huge is profigrowth table The group’s potential for with RheinmetallInterview CEO Papperger Armin will enable the group to tackle future challenges. future tackle to group the enable will 2015” and “Rheinmetall program strategic the that are defi cornerstones and strategic ned in Newsline, CEO new the outlines theoperational Rheinmetall the with view company magazine and acquisitions. mergers Instrategic an inter- businessthe in securing instrumental and was tor, he where succeeded in internationalizing the advancementated with of the Defence sec- mainly was associ- Papperger time. In the past, board of Rheinmetallexecutive AG atsame the boardthe atbeginning the of 2012 and joined the metall Defence in 2010, took chairman over as of appointedwas board of toRhein- the executive management various positions, he1990. After of Rheinmetallment organisation Defence in manage- joinedEngineer Papperger quality the RheinmetallCEO has with been many for years. development, all Bavarian-born as more the so and asure is of continuity sign therefore group changeThe attop the of Düsseldorf-based the all aroundtechnology engine the are excellent.” andbrim our chances of success system with potential, innovation the pipeline is fi lled the to huge automotive supplier. offers believe KSPG “I into line product the of Neckarsulm-based the insight him thatabetter now gives experience a lot of time fias a youngxing cars manuseful – nancial recalledspending Papperger statements, of the annual press conference on group’sthe fi - mechatronics. Talking attime the to journalists for fascination he is a particular a car lover with sible group’s the for Defence–admitted sector AG at the beginning of 2013 and remains respon- took CEO –who over as of RheinmetallPapperger Armin Allgemeine Zeitung (FAZ), per Frankfurter Düsseldorf. Düsseldorf. In an interview with the newspa- the with In an interview

Photo: Michael Rennertz Newsline: Mr. Papperger, as a fully downturn of business in Europe – i.e. fl edged “Defence” person you now the negative side of the auto market. also bear responsibility for the Auto- The fact that our Automotive sector motive sector, i.e. the KSPG group. At was not able to improve on the strong the annual press conference on the year 2011 was ultimately down to spe- group’s fi nancial statements, the ex- cial effects. Both non-recurring costs in ecutive board of Rheinmetall AG for the truck business and the relocation the fi rst time publically stated that of production facilities from Brazil and it intends to maintain its two-pillar USA to Mexico had a negative effect on strategy – in other words, intends earnings in 2012. I share the VDA’s view to maintain the existing structure of for 2013: it will not be an easy year and Rheinmetall with its two sectors De- we face a lot of big challenges. We have fence and Automotive. Does that mean therefore already paved the ground in KSPG’s IPO is off the table for good? order to improve our competitiveness Papperger: Yes, it does. First and by way of cost savings and quality im- foremost, I am a businessman and an provements. engineer, and I want Rheinmetall to Newsline: Talking about “paving the earn good money by virtue of its out- ground”: Rheinmetall still expects standing technical performance, top global growth in the international auto quality and unconditional customer market and considers itself well pre- orientation. This is also how I see the pared for the future. excellent business potential of our Au- Papperger: Indeed, we expect signifi - tomotive sector. After all, KSPG sales cant impetus – especially from the so- in fi scal 2012 rose by approximately called emerging markets where we are 56 million to 2.4 billion in spite of already growing faster than the mar- the clear weakness of the western Eu- ket. We intend to advance our interna- ropean auto market. The Chinese joint tionalization strategy in coming years, venture companies not included in especially in the fi eld of mechatronics. Two-pillar strategy puts Rheinmetall on a stable footing these fi gures even boosted their sales From 2015 onwards, Automotive will by 90 million to a total of 388 mil- generate more than a third of its sales lion, i.e. an increase by 30%. outside Europe, with a special focus Newsline: Western Europe is show- on the markets in China and India. ing signs of weakness – whereas other Our focus on systems and components regions in the world are booming. that help reduce fuel consumption and Papperger: You are right. The North emissions is hugely benefi cial to us. American market has picked up and Especially mechatronics-related busi- Asia remains the booming region with ness is growing thanks to increasingly a big backlog in demand where mo- strict emission standards. torisation is concerned. I am convinced Newsline: 2012 was not an easy that our strong international presence year for the Defence sector, either. In and competencies in the fi eld of fuel the USA, savings initiatives have led effi ciency and emission reduction im- to fi rst budgetary constraints and de- provements put us in good stead to fence budgets in Europe are stagnat- “We have paved the benefi t disproportionately well from ing or showing a downward trend. Has ground to improve global market growth in coming years. Rheinmetall reached the end of the I want to use this opportunity with my road in terms of Defence growth? our competitiveness colleagues from the Automotive sector. Papperger: In 2012, sales by the De- by way of cost In other words, the two-pillar strategy fence sector reached an all-time high puts Rheinmetall on a stable footing. of 2.3 billion (up 9%). Our strong or- savings and quality And this won’t change in the foresee- der intake is also a clear sign: in fi scal improvements.” able future. 2012, order intake rose by around 1.1 Newsline: The German Automotive billion to 2.9 billion, corresponding Industry Association VDA referred to to an increase by 60%. 2012 as a year of positive and negative Newsline: Nonetheless, dynamic or- developments for the auto industry ganic growth has slowed down. and expects 2013 to be a year of chal- Papperger: Correct, but as with the lenge. How do you rate the develop- auto business we have rolled up our ment of KSPG? sleeves and are tackling the challeng- Papperger: I agree with the assess- es. Firstly, we will continue to pursue ment and our Automotive sector did a strategy of M&A and joint ventures, very well in this market environment secondly we are implementing a sig- in 2012. To stay in the picture: thanks nifi cant cost reduction and effi ciency to our internationalization efforts, booster program that will lead to a we were able to over-compensate the sustainable improvement in competitiveness and earnings. However, we over to the German armed forces in are not only cutting costs but actu- 2012 is another good example of our ally intensifying our sales activities innovative strength; this system pro- in countries that are important part- tects our own forces against aircraft ners of Europe and Nato and investing and helicopters, guided missiles, also in the modernisation of their armed artillery fi re and mortar grenades. forces. The future soldier system Gladius or- “If each employee Newsline: Do you expect a general dered by the Bundeswehr in 2012 is trend reversal for Defence from 2015 one more example of our innovative gives his or her best at onwards? strength. Gladius is an advanced sys- their place of work, Papperger: I do. The modernisation tem that gives the individual soldier a backlog in many armies remains enor- hitherto unequalled level of informa- the sum total of all efforts mous so that international defence tion superiority and allows individual will be the very best.” spending on the basis of known bud- infantry groups with their vehicles to getary planning fi gures is expected to be embedded in networked enabled rise again from 2015 onwards. operations command. Incidentally, all Newsline: Apart from our classical three examples show how important customers in Europe and Nato: which the Germany Bundeswehr is as a refer- states are likely to become especially ence customer for Rheinmetall. important for Rheinmetall Defence in Newsline: You have referred to 2013 the years to come? as a year of transition. Papperger: Australia is one example Papperger: The current business of a strategically important market of- year marks the beginning of our Rhein- fering high growth potential. The coun- metall 2015 strategic program with try has a big responsibility in the UN which we want to advance the de- and regularly participates in interna- velopment of Rheinmetall into an in- tional missions. With our new company ternational partner for security and Rheinmetall Defence Australia, we now mobility. Due to the necessary re- 2013 is a year of transition towards greater profi tability

have a strong team in situ: Following structuring measures at Rheinmetall, its fi rst breakthrough in the vehicles 2013 is therefore a year of transition business, the team is now working towards greater profi tability. For 2014, hard on establishing Rheinmetall with we expect further sales growth in both its Simulation and Weapons and Am- sectors and a distinct improvement in munition divisions as a serious player earnings. We will reap the fruits of our “down under”. efforts in the year 2015. Newsline: How do you assess De- Newsline: To achieve these ambi- fence’s chances in other parts of the tious targets, in your fi rst new CEO let- world? ter – which will be issued at regularly Papperger: The budgets of numer- intervals in future – you appealed to ous emerging countries are likely to employees to look more closely at im- rise signifi cantly in the next years. Due provement potentials in their respec- to their growing strategic signifi cance, tive organisations. countries in the Middle East and Asia Papperger: It may sound like a tru- are investing heavily in the moderni- ism, but if each employee gives his or sation of their armed forces. Thanks her best at their place of work, the sum especially also to our expertise in the total of all efforts will be the very best. area of mission protection, we believe And that is why I personally seek to es- we have good chances of growth which tablish a culture of respect, trust and we intend to use. openness in Rheinmetall, especially by Newsline: Which technical innova- improving inter-communication. Only tions do you think will give new im- thus can we transform our group – with petus for growth in the Defence busi- team spirit, technological competence ness? and innovative strength – consistently Papperger: I obviously can’t list ev- to succeed in our business operations. erything but to give some examples: Newsline: What sort of feedback has we have invested heavily in the fi eld the workforce given to the CEO letter? of Simulation and Combat Training Papperger: The feedback has been Center and this has already paid off. good. My team and I have received lots Following Germany, we have now of suggestions in response to the letter. also succeeded in winning Russia and I have always considered direct contact also another Western-oriented Middle with the workforce extremely important Eastern state as a customer for our and will continue to do so in future – modern Combat Training Center. The also by way of the regular communica- Mantis air defence system handed tion through the letter. Both the German Navy and international customers rely on the system know-how of the MarineSoft team in Rostock. Pictured here is the mission and training unit in the Gulf of Aden: During a Replenishment at Sea (RAS) manoeuvre, the frigates Hamburg and Emden are being refuelled from the supply ship Berlin. Visible in the background is the frigate Köln.

Rostock. One of the companies acquired by Rheinmetall Defence Electronics GmbH (RDE) in 2011 is Rostock-based Mari- neSoft Entwicklungs- und Logistikgesellschaft with around 40 employees. This move has strengthened the position of Rhe- inmetall Defence. The group already operates very successfully in the fi eld of military training and simulation and is one of the world’s leading suppliers in this segment. Rheinmetall now has a stake in a company that frequently had the competitive edge on the Rheinmetall subsidiaries RDE and benntec where surface vessels were concerned. MarineSoft is an internationally renowned maritime training and simulation software supplier with its main focus on ship machinery plants and more recently also communication solutions. The company produces courseware, computer-based training applications and in- formation systems for maritime requirements. MarineSoft also develops platform-specifi c simulation programs for training, offering a realistic reproduction of the functionality and properties of the original equipment on board the ship. Simulators running on COTS hardware cover the areas of operation as well as numerous troubleshooting and diagnosis processes.

MarineSoft Entwicklungs- und Logistikgesellschaft Advanced maritime training and simulation

Dr. Volker Köhler (see picture), man- ondly, the concept of combining learn- Democratic Republic. Dr. Harro Kucha- aging director of MarineSoft since au- ing programs and simulation was de- rzewksi, co-developer of an advanced tumn 2011, notes: “We have two main veloped by us for the very fi rst time.” machinery plant simulator for Parchim- strengths: fi rstly, we concentrated on In fact, the idea of modelling a ma- class submarine hunters (in those 3D-modelling of maritime machinery chinery plant simulator as a 3D-model days) stationed at the former offi cers plants at a very early stage and sec- dates back to the days of the German training academy of the GDR Navy in Stralsund, was convinced that a com- are naturally also part of the business bination of existing know-how and portfolio. For instance, the interna- technology would make it possible to tional research project Munin which reduce the big hardware solution to a involves the development and testing slim classroom product that was then of a concept for implementation of the marketed after Reunifi cation. “Under vision of an autonomous and possibly the umbrella of MarineSoft, this then unmanned vessel. Around 70 % of the resulted in the machinery plant simu- workforce is working on by far the big- lator,” remarks Kucharzewski, one of gest project of MarineSoft – the F125 the co-founders of the Rostock system frigate. Managing director Köhler be- specialist in 1990. lieves the organisation will have to be Nowadays, maritime training simu- adjusted and given a project-focus, so lators would be inconceivable with- that experts from different areas can out computer-based machinery plant be drawn into teams for specifi c proj- simulations that are much cheaper ects. and less complicated than the real The development of network- and machines and equipment. MarineSoft web-based training solutions, 3D vi- produces software-controlled simula- sualisation, mobile tors for slow, medium and high speed computing, diesel engines. “These are generic and simulators for engines types installed Rostock. Simulation- on board container ships, ferries and based training is a key aspect of machin- high-speed ferries; and we also sim- ery plant simulators. “The concept of simulation- ulate these systems,” says Jürgen based training, i.e. to have the simulator controlled by Burg, quality and sales manager a learning program and not the instructor is one of the main at MarineSoft. In a subsequent features distinguishing MarineSoft from other successful sup- step, the interactive learning pliers”, says Dr. Volker Köhler, managing director of MarineSoft. The environment is created. In ma- company’s simulation-based training projects benefi t from the extensive chinery operation, personnel experience and involvement in numerous training projects for various naval including technical and duty customers around the world. This concept is based on the use of the simulator offi cers can train normal as the central training instrument that can be controlled either by an instructor or operation as well as com- by a learning program. The system is suffi ciently fl exible to adjust to varying require- plicated processes includ- ments re- ing troubleshooting. The sulting f r o m simulation-based training the different is naturally in compliance learn- Simulation-based i n g with the internationally objec- tives, valid requirements and different practical skills and capabilities and also the training of human compe- recommendations of the tencies. As a fi rst step, the targets and requirements of the training process as a STCW convention and the whole are identifi ed in order to prepare the actual training concept. Such con- internationally accepted cepts then serve as the centrepiece of the simulation-based training environ- ISM code of the International ment. Completed concepts include not only Instructor Guided Training, i.e. Maritime Organisation (IMO) training supported by an instructor, but also Instructorless Training, i.e. that sets standards for safe training that is carried out without an instructor. The former can be car- ship operation. ried out as classroom training, individual training or team resource Alongside its traditional activi- management while the latter method is performed as an in- ties, MarineSoft has also started dividualised and “spot-on” training process involving to apply its maritime expertise and self-controlled training at the appropriate time and know-how to other areas of business. meeting the needs of the individual. And “Once you start learning, you also start this can be done on shore and on to forget” – this was the general motto board ship. taken for the area of knowledge management and support tools. To ensure real-time that the right amount of knowledge is simulation – these available at the right time and in the are just some of the areas in which right place, it needs to be retained by MarineSoft is currently engaged. Man- the trainer and trainee alike. A group of aging director Köhler: “Thanks to the computer-based, interactive solutions combination of internal process know- forming the Electronic Performance how of the areas of work with our ex- Support System (EPSS) on the basis of perience in modern software technol- graphic 3D models and original docu- ogies and the use of modern methods mentation from the manufacturers has of knowledge transfer and manage- been developed for this purpose. The ment, our company is highly success- system can be used for training, tests ful in the fi elds of operator training and job support in situ. and the support of maintenance and Over the years, MarineSoft has of- service activities for complex sys- fered development and other services tems, equipment and processes.” The on a relatively broad basis, with ser- Rostock-based system specialist can vice offerings ranging from maritime offer attractive terms and the best training, courseware and learning technical solutions – irrespective of technologies, software and system the requirement, be it for a complete engineering to virtual reality and sim- virtual, realistic training or a solution ulation. Research and development with hardware in the loop. Düsseldorf. An old German proverb with regard to anti-corruption measures Employees of the Munich-based elec- says that small gifts preserve friend- in the security and defence industry. In tronics group are said to have bribed po- ships. Gifts and other small presents are a recent study of 29th January 2013 in tential customers abroad. The accurate a means of showing friendship in normal which 82 different states were examined, assessment and clarifi cation of the case everyday life, but can express some- only Germany and Australia were award- ultimately cost Siemens far more than thing very different in a business context ed the highest category “A”, confi rming E 2 billion, including fi nes, and fees for where gifts to customers or suppliers high levels of transparency and effi cient lawyers and consultants, not to mention are often made to help sway a certain institutionalised measures for corrup- the losses suffered due to the damaged decision in one’s favour. Under certain circumstances, such actions can be a punishable offence and are referred to as Compliance one of the top priorities for Rheinmetall corruption. To counteract such offences, large corporations like Rheinmetall AG often have their own compliance organisations whose credo is aptly mirrored “It pays to be decent” by the famous quotation from the former Polish foreign minister Wladyslaw Barto- tion avoidance. Aspects investigated reputation. But Siemens reacted: today szewski: “It pays to be decent”. included how many people are involved the group with some 370,000 employ- In terms of corruption, Germany ranks in contract awards and in which manner ees worldwide has put in place a several in the mid-range of comparable industrial decisions are reached and monitored. hundred strong compliance organisa- nations according to Transparency Inter- Nonetheless, corruption still plays an tion. Alongside this, practically the en- national’s latest Corruption Perception important role in Germany. One of the tire Executive Board was replaced. Index. The organisation simultaneously biggest scandals publicized in this con- Another case has featured promi- confi rms Germany’s exemplary behaviour text was the Siemens scandal of 2006. nently with the German authorities and

Düsseldorf. The major corruption scandals of recent years – Military Vehicles GmbH, about the new guidelines on dealing with also in the German industry – have raised awareness of related gifts and benefi ts and the signifi cance of compliance with valid issues at home and abroad. Many countries have introduced rules for Rheinmetall. Dr. Andreas Beyer who grew up in Stuttgart more stringent legislation and companies have extended their has been working as General Counsel for the Rheinmetall group regulations. Newsline interviewed Dr. Andreas Beyer, head of since 1999 and was CEO of Jagenberg AG between 2001 and the law department and Chief Compliance Offi cer at Rheinmetall 2004. 43 year-old Michael Salzmann, the father of a baby girl, has AG as well as Michael Salzmann, Corporate Compliance Offi cer been responsible for compliance since 2010 – initially at RMMV at Rheinmetall AG and Compliance Offi cer for Rheinmetall MAN in Munich and since 2011 for the whole group in Düsseldorf. Newsline interview with compliance experts Dr. Andreas Beyer and Michael Salzmann Regulations give usefull guidance

Newsline: Dr. Beyer, the annual report Salzmann: Tougher anti-corruption Newsline: Some countries in which for 2010 identifi es your role of Chief legislation has been introduced, for in- Rhein metall operates have particularly Compliance Offi cer for the fi rst time. stance in the UK, USA and Italy. Authori- strict anti-corruption legislation. Which Since when has compliance played an ties look more closely at commission pay- countries are these and what is the reason important role at Rheinmetall? ments to consultants, both for anti-trust for such tough rules in certain countries? Beyer: You are right, although the term reasons and with a view to price-fi xing Beyer: The English-speaking states UK, “compliance” was used in the group long between competitors. Business partners USA and Canada immediately spring to before 2010. The conception of compli- nowadays likewise demand compliant mind. For example, Canadian legisla- ance, i.e. compliance with relevant laws behaviour. One of the reasons for this tion prohibits any donations to political and regulations is not new. Legality dec- is obviously the awareness of the dam- parties. The UK Bribery Act introduced in larations undersigned by all executive age caused by corruption. The situation the United Kingdom in 2011 is of particu- staff date back to the 1980s. in Greece has highlighted how corrup- lar signifi cance due to its international Newsline: What has changed in recent tion can lead to poverty in the medium scope. It even applies to business out- years? to long term. side the UK. Companies and people can therefore also be sanctioned outside the UK. The US Foreign Corruption Practices Act is similar. These countries want to ensure that their local companies are assured equal opportunities in international bids and to prevent competitive disadvantages. Newsline: At the end of 2012, Rhein- metall approved a new guideline on dealing with gifts and benefi ts. In which areas do you as the responsible Compli- ance Offi cer expect the largest number of benefi ts requiring approval? Salzmann: The guidelines identify three types of benefi t: gifts, hospitality and invitations. A traffi c light system

Photo: Ariane GehlertPhoto: helps staff to assess what is possible and Decision-aids: Dr. Andreas Beyer (l) and Michael Salzmann with the two compliance panels that have already been used at many different events, e. g. training lessons. public since 2011: in this case, Thys- Rheinmetall’s compliance guidelines, senKrupp AG is said to have formed a organisational and procedural instruc- rail cartel and fixed prices to the disad- tions are constantly adapted, developed vantage of Deutsche Bahn AG and other and complemented in accordance with local public transportation companies. valid legislation. The group’s guidelines The fines imposed are in excess of E for dealing with gifts, hospitality and in- 100 million. The affair is still not fully vitations to events were drafted in Sep- overcome. In December 2012, three of tember 2012. As part of the compliance the six executive board members were program, these guidelines are acces- practically dismissed with immediate sible via the Rheinmetall intranet under effect. the “Compliance” link. Given the higher general awareness A definition of the concept of com- of the importance of complying with rel- pliance that is generally accepted in evant laws and regulations, the concept Germany and comes from the govern- of compliance has been one of the top mental commission Deutsche Corpo- priorities on the Rheinmetall corporate rate Governance Codex describes in agenda in recent years. The key objec- great detail “compliance with legal tive is to promote compliance with regu- rules and regulations and corporate lations as an integral part of corporate guidelines”. The Newsline interview culture. The central compliance organ- with Dr. Andreas Beyer as the Chief isation is the Compliance working group Compliance Officer and Michael Salz- under the leadership of the Chief Com- mann as the Corporate Compliance Of- pliance Officer, Dr. Andreas Beyer who is ficer explains just what this means for also the group’s top lawyer. Rheinmetall AG . what would definitely not be approved. Beyer: Firstly, it is important to note With the previous set of rules, we were that the new guidelines do not have approached in all three areas so this is their main focus on imposing labour-law why we have now introduced a categori- related sanctions on employees. In fact, sation. Generally, most questions will re- quite the contrary, the guidelines seek to late to the area of gifts and hospitality, protect the individual. Persons are be- especially in the pre-Christmas period ing given the ability to identify whether when larger numbers of small presents a benefit is still socially adequate and like calendars and wine are sent to our when certain actions should be ruled employees by business partners and out. Nonetheless, sanctions can be im- customer representatives. The value posed in the event of any serious viola- threshold of e 100 is easily reached tion of the rules. A written warning is when invited out to Christmas dinners. normally the first step taken. Any viola- Newsline: Benefits are permitted if tion of valid standards under law can they are deemed to be within reason- result in fines or imprisonment. Pas- able limits. What does this mean? sive and active corruption is regulated in articles 299 and 334 of the German The Rheinmetall traffic Criminal Code. The maximum term of imprisonment in Germany is five years. light system helps employees Criminal sanctions can therefore have assess individual cases very serious repercussions for employees. These are clearly out of proportion Salzmann: These limits – as set out in in relation to the success achieved by the new guidelines are initially defined bribery. by us Rheinmetall AG. The prime objec- Newsline: Which training programs are tive is the appropriateness of the benefit available to Rheinmetall employees? in question. Although the term “appro- Salzmann: Our intranet offers not priateness” leaves scope for interpreta- only details on compliance guidelines tion, the gut feeling of any member of but also E-learning programs. We also the work force will generally give an in- provide classroom compliance semi- dication as to what is appropriate and nars. 850 RMMV employees were, for what isn’t. This is particularly true for the instance, recently given a compliance assessment of benefits given an amber training to raise their awareness for re- light in our new traffic light system. Fur- lated matters. Such programs are crucial thermore, we also use internal regula- to each compliance organisation. Based tions e.g. of our customers like state au- on past experience of the German indus- thorities for orientation. The valid limits try – that was also made known to the relating to the gifts and benefits which general public – we have highlighted the officials are allowed to accept and related mechanisms of corrupt behaviour in the punishable offences are also used for industry and the serious repercussions orientation. We naturally also look at the on the company and its workforce. Nu- rules and regulations of other companies merous examples give a good impres- listed in the Dax and MDax stock index. sion of what corruption can imply for a Newsline: Which consequences must company. We naturally also discussed Rheinmetall employees expect if they standard situations that are quite likely fail to comply with the guidelines on to occur when sales representatives visit

gifts and benefits? Cartoon: Dirk Meissner customers at home and abroad. Saint-Jean-sur-Richelieu/Ottawa. In 2011 Rheinmetall Canada presented itself with a powerful new structure – with four new business units (Vehicle Integration, Wea- pon Systems, Air Defence and Electronic Systems) providing a strong framework for successful operations on the market (see Newsline 2/2011). A number of positive developments have since been re- ported, underpinning the success of the company’s reorganization. As pointed out by Dr. Andreas Knackstedt, president and CEO of Rheinmetall Canada, during an interview with the Rheinmetall company magazine Newsline, the fi rst upgraded Leopard 2 main battle tanks have already been delivered to the Canadian Forces. Furthermore, the company is proud of the recent success in securing a signifi cant work share in the TAPV program.

Newsline: What makes Rheinmetall these areas, Rheinmetall Canada of- Newsline: When will the moderniza- Canada so successful in North America? fers solutions for Intelligence, Surveil- tion of the Canadian MBTs be fi nished? Knackstedt: As far as the Leopard lance, Target Acquisition, Reconnais- Knackstedt: In September 2010 we 2 MBT contract is concerned, Rhein- sance (ISTAR) applications, e.g. the won the 26 million dollar contract for metall’s battle tank expertise initially Sensor Command and Control Plan- overhaul and modernization of 24 played a big role: of the approx. 2,125 ning Suite (SC2PS) as well as a real- Leopard 2A4 main battle tanks to spec- Leopard 2A4 tanks produced, Rhein- time multi-sensor application capable ifi cations of the Canadian tank forces. metall built 997 which is almost half of operating in real-time to evaluate The fi rst vehicles were already deliv- the total amount. Besides, we invested and process sensor data from different ered to the Gagetown base in May 2012 large sums into our infrastructure at sources like soldier systems, ground where the MBT was subjected to an in- the St-Jean-sur-Richelieu headquarters sensors, UAVs, helicopters, ships and tensive test program. Work is progress- in order to optimize and modernize ve- combat aircraft. ing well and we have handed over 14 hicle production and system integra- Newsline: What about simulators? tanks so that the ﬂ eet can now formally tion. Not to forget the successful and Knackstedt: We have ﬂ exible and be taken into service. The order is to be long-standing cooperation with the competitive simulation capabilities. completed by October 2013. Canadian Forces and local as well as Besides numerous applications for air Newsline: Which modernizations international companies like Textron, defence systems (such as Ados – an have you implemented at your plant? Kongsberg, Saab and IAI Elta. In doing Air Defence Operator Simulator for the Knackstedt: Amongst other things, so, we have acquired an excellent repu- Netherlands), we are presently supply- we built a new water tank. Some people

Dr. Andreas Knackstedt, president and CEO of Rheinmetall Canada: “We are a sought-after partner” tation as a defence systems company. ing simulators for our own family of may think the “tank swimming pool” This was clearly one of the key factors weapon stations and supporting our slightly strange but it has allowed us to why our partner Textron decided to se- Defence colleagues in Bremen to mar- test our Leopard battle tanks for leak- lect Rheinmetall Canada as its partner ket their simulation technology (e.g. ages prior to handover to the Canadian in the TAPV project. in the projects Meso for the Navy and Forces. Newsline: Which other projects are Leopard MBT simulators). Newsline: Is it right to assume that you working on for Canada? Newsline: The business segment Air your Leopard 2 expertise goes beyond Knackstedt: The Close Area Suppres- Defence . . . the actual Leopard contract? sion Weapon (CASW) system is another Knackstedt: . . .has been and remains Knackstedt: Yes, Our affi liate Rhein- key activity. As the systems company, extremely important. As mentioned metall Landsysteme won the order to Rheinmetall Canada is delivering more previously, in 2011 the Canadian Forc- convert twelve Leopard 2 MBTs into than 300 40mm grenade launchers es fi nally took our Adats system out of armored recovery vehicles. Addition- with Rheinmetall’s integrated Ving- service after 25 years. With our partner ally, Rheinmetall Defence Electron- mate fi re control system and ammuni- Elta, we are now busy preparing a Cana- ics is delivering two Leopard 2 fi ring tion with airburst technology. In the dian version of the Multi Mission Radar simulators to the Canadian Forces. Electronic Systems sector, we are deliv- (MMR) to bid for the fi rst sub-system of Rheinmetall Canada has therefore be- ering the core computer of the Gladius a future Canadian Air Defence system. Of come the focal point for the Leopard combat equipment (formerly known as course, we are also supporting Rhein- 2 family in North America. Backed by the Future Soldier System) and – with metall MAN Military Vehicles (RMMV) in our parent company, we can offer com- our partner Saab – are also offering connection with its activities in North plete in-service support for the entire the modular version of combat equip- America. One project worth mentioning life cycle of the Leopard 2 – in keeping ment for the Canadian Integrated Sol- is the planned cooperation in the Cana- with our philosophy of “one face to the dier System Projects (ISSP). Alongside dian truck program MSVS. customer”. in the region with armoured vehicles, infantry fi ghting vehicle procurement Change in Gulf naval systems, air defence, NBC recon- program. naissance, and facility management. Dr. Björn Bernhard, his successor as In 2005 the Emirates placed an order managing director of PSM GmbH, joi- representation with Rheinmetall for 32 Fuchs/Fox NBC ned Rheinmetall in 2004 after comple- armoured reconnaissance vehicles. ting his studies and subsequently wor- Düsseldorf. Effective 1 January 2013, Costing roughly E160 million, these king as a university research associate. Dr. Peter Hellmeister (Photo left), 60, vehicles have proven highly effective in After working as a systems engineer in took charge of Rheinmetall AG’s repre- service with the UAE armed forces. propulsion technology at Rheinmetall sentation offi ce in Abu Dhabi in the Dr. Hellmeister became managing di- Landsysteme GmbH in Kiel, in 2006 United Arab Emirates. He succeeds rector of PSM GmbH (the initials stand he switched to project management. Klaus Hennig, who will continue to for “Projekt, System und Management”) Starting in 2008, he served as project serve Rhein metall in an advisory ca- in 2002. The company serves as general manager for the entire Puma IFV project pacity, primarily in support of Rhein- contractor for the Bundeswehr’s Puma at PSM GmbH in Kassel. metall projects in the Gulf Cooperation Council (GCC) states. Dr. Hellmeister’s successor as managing director of PSM GmbH in Kassel is Dr. Björn Bern- hard (Photo right), 38, who took charge on 1 January 2013. Over the years, Rheinmetall has scored major successes in a number of fi elds in the Arab world and the Gulf region in particular. For example, the name Rheinmetall is closely associated

Abu Dhabi. The 2013 IDEX defence exhibition (one of the world’s major defence shows and the most important event of its kind in the Middle East) took place between 17th and 21st February 2013 in Abu Dhabi (UAE). As one of the exhibitors, Rheinmetall presented an overview of its product portfolio. The Rheinmetall stand – one of the largest at the exhibition – was located prominently in the German section. Rheinmetall’s strong commitment is not without reason. Dr. Peter Hellmeister, head of the Rheinmetall representation in Abu Dhabi, notes: “To bring forward our internationalization efforts, we have to and want to show a stronger presence in the growth markets. The MENA region – standing for Middle East and North Africa – and the GCC states are key areas, especially for our defence business.” Rheinmetall Defence at IDEX 2013 in Abu Dhabi as a reliable partner to GCC states Convincing presentation in key region

Tracked vehicle activities were re- cal operations center and the Gladius tech ballistic protection panels to soft- presented by the Rheinmetall Kodiak Future Soldier system were demonstra- kill systems like the Rapid Obscurant armoured combat engineering vehicle, ted for the fi rst time at IDEX. System (ROSY) and active hard-kill a heavy-duty tracked system designed In the air defence domain, the Rhein- solutions such as the group’s cutting- for military and disaster relief opera- metall Skyshield sensor unit and Sky- edge Active Defence System (ADS). tions alike. Also on view in Abu Dhabi shield Revolver Gun were on view. Examples of Rheinmetall’s naval were several wheeled systems from These components can be used for competence included the Herold and Rheinmetall MAN Military Vehicles, defending military assets and civili- Herold Navy reconnaissance and sur- including tried-and-tested logistics ve- an critical infrastructure, as well as veillance systems. hicles such as the TGS 8x8 Cargo, TGM in military operations other than war Hellmeister drew a positive conclu- 4x4 Cargo and the HX81 recovery vehic- (MOOTW) and for naval applications. sion: “Our impressive presentations le. In addition to these, tactical vehic- Alongside sensor systems, electro- in 2013 have again underlined our les like the 4x4 Armoured Multi Purpo- optical components and fi re control claim to being a competent and reli- se Vehicle (AMPV), here confi gured for systems, a wide range of munitions, able partner for GCC member states. a reconnaissance role and equipped combat equipment and simulation However, a point to remember in this with Vingtaqs SLR as well as the mobile technology, Rheinmetall demonstrated context is that such exhibitions are command post variant of the 8x8 GTK its comprehensive expertise in the fi eld always fairly unique events; to ensure Boxer were on display. Interaction bet- of force protection. This ranges from a lasting effect, one needs continuity ween the C4I system of the Boxer tacti- high- and group-wide coordination.” Neuss. Over the next five years, pends salary expectations of key personnel global players like Henkel, BASF and o n in emerging countries are rising and Daimler want to significantly increase the have partly already reached the lev- the proportion of local managers not indi- els of western salaries”, says Angela recruited in the company’s country vid- Stoffers. of origin. This is the result of a recent u a l Another important point to con- survey conducted by the Personnel case.” sider is that management person- Consultancy firm Egon Zehnder Inter- Dur- nel in countries like China or national Deutschland. At the same ing the India traditionally have a dif- time, well qualified local persons are build-up ferent understanding of loyalty highly contested in the emerging mar- of a foreign towards their employers and kets Brazil, China and India. KSPG AG subsidiary, i.e. after are generally more willing to likewise intends to recruit more local the first three to f i v e switch jobs frequently – often simply managers while expatriates (i.e. per- years, the local man- because of a minor pay rise. Frequent sonnel sent on an assignment to a agement becomes more job changes in these countries are not foreign subsidiary) are still rated as important and can con- considered negative but often even extremely important. The decision as tribute towards the better interpreted as a sign of good perfor- to which jobs should be filled with lo- implementation of struc- mance. The challenge for KSPG is to

Added value through local managers cal staff and which are better suited tures and processes (often introduced lower the so-called attrition rates. for expatriates largely depends on the by expatriates). Stoffers: “Local man- One good example of this is MS Mo- “maturity” of the foreign subsidiary. agers give an added-value through tor Service Asia Pacific Trading Co., “In the early stages of a subsidiary their “inside view” and are often more Ltd in Shanghai which transfers more abroad, it is normal to fill key func- readily accepted by business partners responsibility to its management per- tions such as Chief Executive Officer if the local manager is “one of them”. sonnel step-wise, and promotes staff and Chief Financial Knowledge of the with individualised training programs Officer with (Ger- characteristics to meet the needs, thus managing to man) expatriates in Added value from of a country and keep its employees in the company for order to ensure that managers recruited its native lan- many years. the most important guage becomes To recruit and keep staff in foreign corporate process- locally thanks to increasingly im- subsidiaries in the long term, it is es- es and the neces- portant as cor- sential to give them a sense of belong- sary core know-how their “inside view” porate growth ing to the company and group, and are implemented abroad automati- to appreciate their work on a group properly from the outset”, says An- cally puts more emphasis on the local level. Stoffers: “Local employees and gela Stoffers, head of the new HR In- conditions in the respective country. managers are extremely important for ternational organisation since January Local managers therefore increasingly KSPG. We therefore want to attach 2012 (see also article “Strategic part- offer added value to the com- even more importance to raising their ner for colleagues abroad”). Stoffers pany. profile and their performance in the believes that it can also be expedient However, there is still a group. Simultaneously, we should be to rely on the expertise of expatriates distinct lack of qualified lo- more willing to learn from their expe- in key functions during the growth pe- cal managers – particularly in rience, in other words to view them riod of a foreign company through to emerging countries. The mar- as real partners in an appreciative the stage of maturity. Stoffers: “Espe- ket abroad is getting more and manner.” cially during the integration of several more difficult because KSPG is divisions located at one site or the ac- fighting for the best man- quisition of further companies abroad, agers in competition it can be beneficial to draw on the ex- with the other big pertise of well-connected expatriates. auto suppliers The question of when leadership of a and OEMs. foreign company can be handed over “Not to for- to a local management ultimately de- get that the Newsline: Who decides which candi- and suitability for service abroad. For to meet the growing demand for quali- date is best suited for a management instance, we establish the suitability fi ed personnel in emerging countries. position abroad? of candidates for cooperation in global We therefore search for candidates Stoffers: Our HR colleagues respon- teams and assess their intercultural through various channels. Our local HR sible on a divisional level here in Ger- skills. These results are then used to colleagues get in touch with local and many are always involved in the profi ll vacancies with suitable candidates international head hunters; adverts are cess. By creating HR International, we and to implement an organized suc- placed in internationally accepted “job now have an umbrella function with cession planning process for manage- exchanges”. We plan to cooperate even the aim of progressively supporting ment functions. Pools are established more closely with our HR colleagues in all key HR processes – including the from which persons are then taken to future in order to build co-operations recruitment of suitable staff to fi ll va- fi ll vacant positions. with universi- ties and to cancies and the conception and coor- Newsline: What happens if you can’t develop our partner- dination of Young Managers Develop- fi nd a suitable candidate in-house? ships with uni- ment programs as well as Executive Stoffers: If this is the case, we start versities and Development seminars. Expatriate to look outside the group. We check to colleg- es. support is another important service see whether the time is right to look Our offered. for key management personnel on the con- Strategic partner for colleagues abroad

Neuss. KSPG’s HR-International function established at the beginning of tacts with Tongji University in China 2012 was created to introduce central HR standards at the group’s foreign sub- are, for instance, excellent and we sidiaries, and to promote and underpin international networking between col- recruit staff from there who have e.g. leagues abroad. Angela Stoffers has been entrusted with the challenging task spent some time studying at a German of managing the group’s HR International organisation. She is supported by university and therefore have no reser- three human resources offi cers who deal with HR International activities and vations about working for a German other subjects such as company pension schemes or the implementation of company. group-wide HR projects. The 39-year-old lawyer previously worked as head of Newsline: How do you develop your corporate HR policy, labour and social law at Rheinmetall and has acquired ex- managers and executives? tensive experience in various HR functions, also with another major automo- Stoffers: The level of qualifi cation tive supplier. Newsline interviewed Angela Stoffers to fi nd out how the group in emerging countries, especially of identifi es and develops suitable managers for work in emerging countries. candidates with international degrees such as an MBA, is generally good. The Newsline: How do you identify suit- local labour markets. If the respective challenge for them is to understand able candidates for jobs abroad? subsidiary is mature enough for such and apply KSPG-specifi c processes. Stoffers: Every two years, the group a step, we then provide the necessary We therefore want to integrate our ju- carries out a “potential analysis” for assistance to fi ll the position with a nior staff properly in our internal pro- executives and other defi ned groups of person from the country in question. cesses by, for instance, giving them persons. This instrument is used to es- Newsline: That sounds like quite a technical training support in situ. To tablish the performance and the com- challenge. support local staff in ongoing projects, petencies of individuals. It also gives Stoffers: It is, especially as only a lim- we also send German experts abroad an indication of development potential ited number of persons are available for a limited period of time.

Neuss. As a global corporation with e.g. in India, who would like to partici- of seniority, staff working at a foreign more than 50 foreign subsidiaries, pate in the group’s training seminars. subsidiary can participate in technical KSPG AG needs managers that embrace The next international EDP scheduled training courses and seminars to deve- operational needs and think strategi- for 2014 will have an even stronger fo- lop e.g. their soft skills at their respecti- cally, have intercultural and integrative cus on international modules. The Ger- ve parent company, for instance Arnold skills, are mobile and can network well man programs can be used as a basis Ji, the new head of Finance and Control- with others. To support these and other for the international events. A separate ling at MS Motor Service. Before moving capabilities, and in line with the pro- Leadership Development Program who- abroad, Jan Pleyer who recently joined grams of the group holding Rheinme- Pierburg in China as head of Operations tall, KSPG offers management training likewise participated in a special pro- seminars to different target groups, gram developed by the Neuss-based including the Young Manager Program Leadership automotive supplier and its subsidiary and the Executive Development Pro- Pierburg Pump Technology for young gram (EDP) for more experienced ma- se modular structure is quite similar to international managers offering high nagement personnel. The EDP is also the German program is currently being management, technical and project po- available as an international program carried out in India. Head of HR-Interna- tential. Members of the HR-Internatio- in English. In the past, management tional Angela Stoffers points out: “The nal team offer advisory support for the training seminars at KSPG’s foreign Indian program was received really well development and performance of ma- subsidiaries were usually tailored to by the twelve participants who have all nagement training programs and help the specifi c needs of local managers. spoken out in favour of a program conti- launch seminars for companies abroad, HR-International has, however, been nuation (advanced module).” Besides, depending on the skills and levels of ex- approached by various people abroad, irrespective of their function and level perience of HR departments. Düsseldorf. The Rheinmetall group relations between Rheinmetall and and the Dutch armed forces have ag- the Dutch armed forces. At the same Cooperation to reed to extend an existing agreement time, it sets the stage for intensifi ed for the supply of various ammunition long-term cooperation that will benefi t types in close cooperation between both sides. be continued Rheinmetall and the Netherlands. The This wide-ranging agreement further new 7-year agreement runs to the end reinforces Rheinmetall’s role as a lea- pled with a streamlined procurement of 2019. Under the existing agreement, ding supplier of large- and medium-ca- process. To date, both parties have be- Rheinmetall generated annual sales libre weapons and ammunition to Nato nefi tted in a multitude of ways from the averaging E25 million during each of member states and other likeminded agreement, leading to better communi- the past two years. Ad van de Geijn, nations. cation as well as facilitating processing Director of the Dutch Procurement Au- The Dutch Army turns to Rheinmetall of customer requests and orders. The thority, and Armin Papperger, Chair- for a wide variety of ammunition types Dutch military has also gained from the man of the Executive Board of Rhein- in many different calibres, including sale of obsolete defence equipment. In metall Defence, signed the contract at service and practice versions as well as short, major advantages have accrued Unterlüß in northern Germany. The de- propelling technology. The partnership to both customer and contractor, with cision to extend the agreement, which agreement provides the Dutch military close cooperation resulting in greater dates from 2007, refl ects the longstan- with a reliable, long-term source of sup- orientation to the evolving needs of the ding mutual trust that characterizes ply for top-quality ammunition, cou- Dutch armed forces.

Düsseldorf/Bonn. Moves by the German Bundeswehr on, and encompasses equipment for 60 infantry sections to equip its infantry forces with the state-of-the-art Gla- with a total of 600 soldiers. Delivery of the new systems dius soldier system are gathering pace. In January 2013, will take place in two lots consisting of thirty systems the Rheinmetall group was awarded an order to supply a each, the fi rst one in the middle of 2013, another at the further sixty systems. The procurement program began end of the year. This will ensure that the next two con- in 2012 with an initial order of thirty systems, enough to tingents of Bundeswehr troops due to deploy to Afgha- equip 300 troops.This follow-up order is worth E84 milli- nistan will receive the new equipment well in advance. E84 million order for 60 more systems

As planned, the Bundeswehr is cur- vious infantry systems used by the Bun- soldier systems. Gladius is intended rently taking delivery of the thirty Gla- deswehr, especially with regard to net- fi rst and foremost to bring the 10-man dius systems it ordered in 2012. The workability, command and control, and infantry section and its vehicle into the troops will have until June 2013 to train combat effectiveness. Refl ecting the network-enabled operational loop. This with the new system before going to heightened requirements profi le of the network, consisting of reconnaissance, Afghanistan. Developed by Rheinme- user as well as incorporating knowledge command and control components, and tall and originally known as “Infan- gained during comprehensive testing weapons, enables rapid exchange of in- terist der Zukunft (IdZ 2)” or “Future and in the fi eld, Gladius is essentially a formation as well as shared situational Soldier”, Gladius is the most advan- new, highly advanced system. awareness as the basis for planning and ced system of its kind anywhere. Its A prominent feature of the Gladius sys- conducting operations. introduction is a major step forward tem is the holistic design approach that The individual soldier receives all re- for the Bundeswehr, which will signifi - takes full account of the complex opera- levant data concerning the tactical si- cantly improve the overall operational tional requirements levied on modern tuation, the position of friendly forces, effectiveness of the mission, and German Bundeswehr fi elds new Gladius soldier system – holistic design approach. German infantry system status. It units while simul- includes a GPS taneously enhan- and an inertial na- cing the surviva- vigation system bility of individual as well as a ma- soldiers. gnetic compass, Gladius substan- facilitating reliab- tially exceeds the le orientation on

capabilities of pre- Photo: Zwilling Ralph the ground. Berlin/Bremen. Rheinmetall has suc- replicates. Vehicle-specifi c simulator cessfully completed modernization of a software also forms part of the packa- traffi c and driving simulator for trams ge. The basic system includes a moti- on behalf of the Berlin Public Transport on system for reproducing the forces Authority (BVG). Coinciding with the in- that occur during driving; the projec- troduction of a new type of tram in the tion system for replicating the driver’s German capital, in recent years Rhein- view; a digital visualization system for metall simulation experts have expan- calculating the virtual scenario in real ded the simulator’s virtual network of time; and the virtual BVG tramline net- tram lines, updating and upgrading work. Rounding out the system are a si- the computer and projection systems, mulation computer with the simulator and integrating additional functions software, a workstation for the trainer BVG’s new traffi c and driving simulator, into the simulator controls. They have and a facility that enables visitors and/ also known as the VeFaSi for short, is also expanded the system to include a or other trainee drivers to watch. The- based on an interchangeable driver’s com- simulator cabin for the BVG’s new Bom- se driver compartments are designed partment concept. It consists of a basic sys- bardier “Flexity Berlin” tram. Rheinme- to be interchangeable. In just thirty tem and different driver’s compartments tall completed the multifaceted simu- minutes, the simulator can be reconfi - for the three trams in service with the BVG. Tram driving simulator

lator project within the agreed cost gured for any of the three tram vehicles limits. BVG’s new trafﬁ c and driving si- currently operated in Berlin by the BVG mulator, known as the VeFaSi for short, by switching the driver’s compartment. is based on an interchangeable driver’s Together with the basic system and the compartment concept. It consists of vehicle-speciﬁ c software, it is therefo- a basic system and different driver’s re possible to respond to changing re- compartments for the three trams in quirements, i.e. training new drivers or service with the BVG which the system conducting periodic refresher courses.

Düsseldorf. The German Bundes- special rescue platform can be used for wehr has contracted with Rheinmetall evacuating personnel and equipment to supply it with seven Fuchs/Fox ar- from the danger zone. moured vehicles specially confi gured The Fuchs/Fox vehicle used for the for detecting and identifying roadside KAI platform is the latest version of this bombs, mines, etc. This new Fuchs/ tried and tested 6x6 wheeled vehicle, Fox variant is called the KAI, short for which occupies a prominent place in its offi cial Germany designation, the Bundeswehr inventory. First fi elded “Kampfmittelaufklärung und -iden- some thirty years ago, Rheinmetall tifi zierung”. The order is worth has steadily upgraded the protection around 37 million. The vehicles level and operational capabilities of reinforce the Bundeswehr’s “Route this robust, reliable three-axle vehicle, Clearance System” for reconnoitring adding modular protection features, and neutralizing improvised explosi- a reinforced chassis and fragment-re- ve devices, or IEDs, from the safety of ducing spall liner in the interior of the an armoured fi ghting compartment. A fi ghting compartment. total of seven vehicles are to be deli- In addition, the Fuchs/Fox 1A8 is vered between November 2013 and equipped with highly effective anti- November 2014. In current and future landmine and IED protection elements, peace enforcement and peacekeeping special suspended seating that keeps missions, IEDs will continue to pose the crew’s feet off the fl oor of the hull, Manipulator technology a major threat to troops deployed in textile rifl e holders and nets for secu- harm’s way. Today, the Bundeswehr ring all wall-mounted equipment. still relies on troops equipped with The Bundeswehr plans to deploy the manual devices for keeping routes of Fuchs/Fox KAI in Afghanistan star- Seven Fox march and lines of advance free from ting in the 4th quarter of 2014: even roadside bombs, etc. As a result, cur- in a drawdown scenario there are nu- rent EOD detection and clearing pro- merous vehicle movements, and coun- cedures are not only labour- and time- tering the threat from booby traps and vehicles for intensive but potentially dangerous. roadside bombs will be as important Besides excellent crew protection, as ever. the Fuchs/Fox KAI features a multiple- The Fuchs/Fox KAI adds a new di- joint, high-precision manipulator arm mension to the Bundeswehr’s heavy clearing IEDs with a 10-metre reach and heavy lifting mine-clearing capability, and is inten- capacity. The manipulator arm makes it ded to reconnoitre danger zones that possible for EOD personnel to examine the Route Clearance System cannot and identify unexploded ordnance and reach. In addition, KAI will also be able IEDs with extreme precision from a safe to serve as a standalone EOD detec- standoff without leaving the safety of tion system for reconnoitring hotspots the fi ghting compartment. Moreover, a during convoy escort operations. PPT’s technical buyer Fu-Kung Shen “My dictionary was my best friend”

Fotos (8): Ariane Gehlert

Neuss. “I am a banana child”, says Fu-Kung Shen jokingly: “Yellow on the out- As a development partner of major side and white inside.” He looks like a Taiwanese but at heart he is a German automakers, PPT drives innovations engineer. These two attributes make him the ideal technical buyer for Neuss- and designs new solutions for power- based Pierburg Pump Technology GmbH (PPT). Shen’s negotiating partners are ful, consumption-optimised engines. spread across Asia. His development from an immigrant child attending second- Shen: “Basically, we focus on envi- ary modern school to an engineer working in a global environment is exemplary. ronmentally friendly technologies that allow fuel savings and emission 34 year-old Shen moved from Taiwan mechanical engineering studies at reduction, and simultaneously offer to Mettmann near Düsseldorf with Wuppertal in 2002. optimum performance at all times.” his parents and brother at the age of Alongside his academic studies, Design drawings are the starting sig- twelve. His parents – both cooks – Shen worked part-time for Thielen- nal for Shen. Once these are available, hoped they could offer their sons a haus Technologies in Wuppertal where the technical buyer has three main better future here in Germany. Shen re- he wrote his thesis on the “Analysis goals: best quality, best price and calls that they arrived without speak- and composition of necessary prod- best delivery time. ing a single word of German. “We didn’t uct data for the improvement of in-situ Shen’s diplomatic skills are needed even know that there was a three-tier services by the example of a machine when negotiating with selected Asian school system here.” Shen ended up in tool for rolling bearings” and was partners. Frequently asked about his a secondary modern school with 80% given his fi rst permanent job. Shen origins, he answers that he is a banana foreigners. “I had expected lots of started in the sales department, and child that is “yellow on the outside light-skinned blond children and was was responsible for the Asian market. and white inside” with a German pass- really surprised to fi nd that most of the From then on, his professional life port. This helps him to avoid pupils had black hair”, he remembers. was shaped by numerous busi- political discussions that are His new life in Germany got off to a ness trips to Asia including his inevitable if he mentions his diffi cult start. “My dictionary was my original home country Taiwan. Taiwanese origins. Shen best friend.” Having fi nished second- In August 2011 Fu-Kung Shen prefers to stick ary modern with excellent grades in left his job as a purchaser for Thielen- to technicalities which he is more Not only Pierburg Pump Technology benefits from his comfortable with: “I have always been striving for perfection in his daily work. Some of his good at thinking things colleagues have already taken part in free Kung fu self- through logically and have had a good spatial defence training sessions offered by Fu-Kung Shen. perception since early childhood days.” maths and science but poor grades in haus and joined Pierburg For a technical buy- the other more language-orientated Pump Technology GmbH in er, fi nding the right subjects, Shen started a three year ap- Neuss as a technical buy- words is more than prenticeship as a toolmaker – and this er. In his new function, just mastering the was his big chance. he is responsible for selecting and technical vocabulary. Although his teacher initially clas- negotiating with Asian suppliers on “Relationships play a sifi ed Shen as a “big risk”, a warm- behalf of PPT as the leading manufac- big role in Asia”, emphasises Shen. hearted father-son relationship soon turer of oil, water and vacuum pumps The key task is to overcome the mis- developed between the two – a re- for cars and commercial vehicles. The conception that Germans have money lationship that has lasted to his very task is varied and challenging. “I man- and are willing to pay excessively day. Shen soon improved his German age complete projects, learn a lot and high prices, and to obtain a discount language skills. The youngster who meet lots of interesting people.” for foreigners. “This has to be done had been considered a “risk” com- Technically, Shen’s job demands not with care to ensure that the partner pleted his apprenticeship with good only that he is fully up to date with de- does not lose face when he adjusts an grades. Shen acquired German citi- velopments but always stays one step overpriced offer to the requirements”, zenship and completed his compul- ahead. Renowned car makers launch says Shen. sory civilian service as a maintenance new car models every four to fi ve Shen sees his job as a great chal- supervisor at the University of Wup- years. Shen’s key role is generally in lenge: “Anyone who has worked for pertal. At the same time, he attended the middle of a project phase. To give the purchasing or sales department evening classes at Night School for an example: while the new VW Golf VII has been given an excellent training six months followed by another two model was launched quite recently in for his own personality. One learns to years at Day School which he com- November 2012, Shen is already think- assert oneself.” Internationally. And pleted with an entrance qualifi cation ing about the successor model, the the fi nancial reward is good. for technical university. He started his Golf VIII. Martina Kiefer