Company Review

COMPANY REVIEW

Lohja Vantaa Västerås Elva Malmö

Nova Dubnica Zürich Turgi Beijing

Suzhou

Hong Kong

Manufacturing plant Office ENICS AG

Enics is the partner of choice for industrial electronics companies with our world class electronics manufacturing services (EMS) – from development support to new product introduction SOME KEY FACTS AND FIGURES ABOUT ENICS to manufacturing to life extension services. As one of the largest EMS providers in the world, we • Electronics Manufacturing Services (EMS) for Industrial Enics is headquartered in Zürich, Switzerland and has a help our customers in the fields of transportation, Electronics (IE) customers total of eight manufacturing plants in Finland, Sweden, Esto- building automation, energy, industrial automation • Sales 2011: ~ 380 MEUR nia, Switzerland, Slovakia, and China, as well as a sourcing and instrumentation to optimize their value • One of the top 5 EMS companies serving Industrial office in Hong Kong. The latest addition to the Enics plant chains and improve their competitiveness. customers; among top 20 EMS companies in the world network is its new site in Suzhou, China. This site enables We accomplish this by helping companies increase • Over 3000 employees in 8 plants on two continents, Enics to serve its customers in Eastern China more effectively. productivity and product reliability and decrease Asia and Europe time-to-money and total cost of ownership. • Over 40 years of experience in industrial electronics • Management Buy-Out in 2004 Enics is a young company, founded in 2004, but our competence and drive were created a generation before that. Our roots are in big industrial Sales development (MEUR) corporations like ABB and Bombardier, in electronics companies like Elcoteq and Flextronics. From 450 those roots, Enics was born. 400 We, at Enics, have taken a few steps further. As a 410 350 third generation company, we use extensive 378 (estimated) product knowledge to provide a much deeper level 300 339 of service to our customers. Their products are 327 317 complex and the product life cycles are consider- 250 279 ably long. They understand that finding a partner 271 200 who can manage this complexity, with expertise in 216 many diverse market segments, over long periods 150 of time, is challenging. Enics is an electronics manufacturing services (EMS) company with a 100 129 clear focus on industrial electronics businesses 50 and customers’ needs. Our strong foundation and proven performance provides a valuable 0 partnership to our customers. 2004 2005 2006 2007 2008 2009 2010 2011 2012

Enics Company Review 2011-2012 3 LIFE CYCLE MANAGEMENT – WE CARE ABOUT IT!

Enics offers services and solutions along the entire life cycle of our customers’ products. These services include development, support, prototyping, industrialization, manufacturing, product care, spare part production, and repair and maintenance. All these “solution pearls“ contain multiple related services – about 50, to be precise. A few examples are:

• Our test development specialists provide professional test concepts. The customer benefits from an optimal balance of cost and quality. One of FOCUS ON QUALITY our highlights is Enics’ standard functional test platform. It has high test quality, with short development time, at a competitive cost. AND RELIABILITY • Our fast prototyping shortens time-to-market and increases profitability. • Our guided new product introduction with accompanying processes and We are aware that in our business environ- gate-reviews enables total costs to be optimized and significantly shortens ment, competiveness, reliability, and quality time to market. are critically important to success. We are • Within manufacturing we provide six levels of system assembly. This con- more than willing to participate fully with our sists of printed circuit board assembly (PCBA) to box build, the assembly customers to have a positive impact on every- of subsystems, total systems (cabinets), and systems with variants, plus one’s Quality of:for Life. Therefore, we focus design to order. No matter what the volume or level of assembly, our all our activities on fulfilling our customers’ customers’ products are delivered on time, to the right place, with the expectations and helping them to succeed. right quality. This is achieved through world class manu- • With only the bill of material and Gerber data’s to the ready product with facturing and related services. We use tools Enics’ new design for manufacturing analyses. like lean manufacturing, six sigma, and the • Our life extension solution consists of after sales services, component production parts approval program (PPAP) to care, and product care, to ensure e.g. that our customers can fulfill long- ensure that the highest quality standards are term obligations to their end-customers. met. We have in-depth knowledge about the way the services we provide interact and mu- All 50 services we provide throughout the product life cycle have one thing tually influence each other along the product in common: They add substantially to our customers’ value chain and guar- life cycle, and have established lean processes antee high class products. accordingly. As a result, our customers’ products are fast to market because we indus- trialize them from the beginning. A further Manufacturing benefit is continuous cost reduction thanks to established interaction, global sourcing and the use of our worldwide manufacturing facility network. Industrialization Product Care

Prototyping Spare Parts

Development Services Repair & Maintenance

4 Enics Company Review 2011-2012 5 WORLD CLASS MANUFACTURING

Leadership focuses on doing the right things; management focuses on doing things right. Stephen R. Covey

In Enics, we define World Class Manufacturing (WCM) as a mix of different efforts, practices, and behaviors.

Standardization Consistency High-Level Knowledge Execution Benchmark Continuous Improvement + Flexibility

World Class Performance

Technical and manufacturing engineering standards and competencies are developed and measured at every Enics facility. We look for consistency and encourage employees to make decisions based on our objective to have a global culture. Enics considers benchmarking as a way to learn, as a tool for overall improvement, and as a method to increase networking among employees. We want all employees to feel they are part of the Enics Global Network organization, striving to be world-class in the execution of their programs, while feeling local at the same time.

World Class Manufacturing Elements at Enics are:

EMPA Enics Manufacturing Process Assessment (EMPA) is a global tool for setting standards and assessing Enics Business Units’ (BU) critical manufacturing processes. It tracks the world-class performance of the Business Units Network.

Lean Manufacturing At Enics, we are committed to eliminate waste in all forms. Enics deploys Lean Manufacturing training and coaching throughout its network to enhance Continuous Improvement efficiency and productivity in our operations. We create flow and speed Continuous improvement is the key enablerer to become a WCM company. on our manufacturing shop floor: Enics considers Lean as the strong-arm Enics has set different measuring and improving tools in order to continu- for WCM. Lean is an ongoing process of change involving everyone in the ously guarantee the World Class performance. organization. It improves Quality, Cost, Delivery, Safety, Morale (QCDSM).

Problem Solving and Six Sigma Operational leadership requires ensuring that organizational processes are Enics uses Six Sigma to solve product and/or process challenges to reduce effectively carried out on a day-to-day basis, monitoring performance, and variation. Enics uses DMAIC (Define, Measure, Analysis, Improve, Control) to en- addressing constraints. As part of Word Class Manufacturing, continuous hance process behavior, to execute improvement plans, and to reduce defects. improvement never ends!

6 Enics Company Review 2011-2012 7 Volume price agreement negotiations One cornerstone in our supplier relations man- with Enics’ suppliers are conducted a minimum agement is the preferred supplier pro- of three times every year. We continually strive gram. Enics consolidates purchasing volume to offer greater flexibility and to make the as much as possible with our approximately 40 supply chain more efficient. We work with our preferred suppliers. This is an opportunity for suppliers to increase our supplier integration our suppliers to receive the benefits of greater models. This means that we will have even purchasing volumes and reduces the risk in more of our suppliers using logistical models the supply chain. This program increases the such as consignment, KanBan, reduced lead- attractiveness of our sourcing to suppliers. time programs, buffers, etc. Of course, at the same time we need a wide range of regular suppliers to offer our cus- Our supplier relations management con- tomers competitive solutions to their unique cept is our competitive edge. We challenge needs. Our preferred supplier consolidation ourselves to be the best possible customer is increasing yearly, and we are now getting of our suppliers, pushing the boundaries and close to an optimal level of 70%. securing the mutual success of everybody in the entire supply chain. The partnerships we build with our most trusted suppliers yield fast action, superior information-flow and a solution-oriented business. Thus, a win-win- situation for all parties involved.

ENICS D/SCM KEY ELEMENTS

Supplier Integration Engineering Services • Efficient logistics that consist of a wide • Re-design and re-selection of compo- range of replenishment models nents • Dimensioning the whole chain to meet • End-of-Life and Last Time Buy services the end customer’s needs DEMAND/SUPPLY SQM D/SCM Modeling • Supplier audits • Customized design of the supply chain • SPR (Supplier Performance Rating) CHAIN MODEL • Secure the right level of flexibility Global Reach Cost development • Efficient and environmental logistics Enics believes that the success of our customers is very much dependent • Cost Competitive Country Sourcing • Strong Cost Competitive Country Sourc- on a reliable supply chain and competitive sourcing. As a trusted partner, • Strong market knowledge through ing (CCc) supplier base our ambition is to continuously develop our first class supply chain in line excellent supplier relations with a clear QDC (Quality, Delivery, Cost) focus. Quality must always come Customer Focus first. Reliable deliveries are essential and costs must be competitive at all Supplier Relations • Supply chain is an integral part of our times. Enics’ demand/supply chain model (D/SCM) strategy is the foundation Management (SRM) account teams for strong and established D/SCM key elements (see table). • Based on the principle that suppliers are as important as our customers Volume Price Agreements Enics’ supplier selections are made in line with the practice of Total • We pride ourselves on having the best • Quarterly Cost of Ownership and based on the results of our supplier performance relationships with our suppliers • Always face-to-face rating. We measure all aspects of quality of our suppliers to ensure that they live up to our requirements.

8 Enics Company Review 2011-2012 9 ENTERING A NEW ERA OF SUSTAINABILITY SUSTAINABILITY IN ENICS

As Enics’ slogan Quality of:for Life and our tion against violations of human rights, labor values infer, sustainability is an issue that we standards, the environment and against cor- hold as a topic of high importance. Sustain- ruption. Enics makes a reasonable effort to ability at Enics translates into a proactive ap- contract only with the suppliers or service proach to economic, environmental and social providers that adhere to international human responsibilities, and is embedded in the Enics rights and environmental laws and regulations. management system. Sustainability means After the environmental impact analysis con- that Enics pays attention to requirements set ducted in 2008, Enics decided that its focus by employees, customers, society and legisla- for environmental responsibility will be on tion. The Enics Code of Conduct, based on the waste reduction, recycling, offering product Kristi Opikova United Nations Global Compact, is – together life-cycle extension services to customers, UNGC project leader with the Enics Values – the guideline for ethi- and locating production close to our custom- in Enics responds: cal behavior at Enics. These values form the ers and suppliers. These actions reduce our foundation for behavior and significantly influ- environmental footprint. ence decisions and actions in all relationships with business partners, personnel, society Enics units operate according to an environ- What is the United Nations Global Compact (UNGC)? and nature. Every Enics employee, without mental management system and have ISO According to the United Nations, the Global Compact is a exception, is expected to behave and act in 14001 certification for the system. The certifi- practical framework for the development, implementation, accordance with our Code of Conduct. cation requires the business units to continu- and disclosure of sustainability policies and practices, ally improve their environmental performance It is widely understood in Enics that for sus- offering participants a wide spectrum of work streams, and expand the environmental awareness of tainability to work it requires long-term ef- management tools and resources — all designed to help their employees. fort and commitment. Enics’ environmental advance sustainable business models and markets. analysis that was completed in 2008 set forth We are proud to have received several awards objectives for social responsibility. Enics will for our continuous work on the environment, Why did Enics join UNGC? conduct business as a responsible corporate such as the KONE Environmental Award in 2010 Enics signed up with the United Nations Global Compact citizen by applying the Social Accountability and Enics Eesti recycling awards in 2007 and to increase corporate awareness and responsibility for SA8000 standard to all relevant operations, 2009. Enics also regularly organizes Quality the society we live in. We are not a company taking only including the supply chain. An OHSAS 18001 of:for Life events in Asia and Europe, which benefits from society. We also want to give something in occupational health and safety standard audit concentrate on topics and discussions for return. Being part of the United Nations Global Compact was conducted in Enics. Moreover, as a mem- making the EMS field more user and human we have the opportunity to commit ourselves to the 4 main ber of the United Nations Global Compact, friendly. And there is always a special focus universally accepted areas. We have implemented a code of Enics has committed to take even more ac- on sustainability. conduct and want to take this one step further and align with the Global Compact’s 10 principles. Through UNGC we are strengthening our company culture and strategies.

Peter Back Looking into the future – new management pos- Director, Customer Relationship Management sibilities by UNGC for the future? UNGC gives us the possibility to grow and become even more socially responsible. UNGC offers a wide spectrum Sustainability is part of our daily activities and continuous of work streams, management tools and resources to actions, and we go beyond industry and quality standards. implement our goals. By joining the UNGC Enics increases In all our locations we recycle the waste generated in our its transparency externally and internally as well as within operations, and have received recognition for this by na- the whole EMS marketplace. This helps Enics drive towards tional authorities. Enics is continuing its efforts to invest a more human-friendly and ethical business within the in equipment that consumes less energy which, alongside EMS industry. Achieving the ten principles of the UNGC is our continuous lean improvement activities, enables us to Enics’ long-term goal to contribute to making our planet produce more, using less energy and less space. a better place for future generations.

10 Enics Company Review 2011-2012 11 Mario Mojzis ENICS VALUES Manager Human Resources, Enics Slovakia

Giving someone respect, for me, means to value the person. Not only his thoughts and feelings, but Dirk Zimanky also acknowledging her or him, lis- tening and accepting individuality. CEO and President, Enics AG When people respect one another Jane Liu Our Enics values are the basis of our daily business – internally for all our there are fewer conflicts. Respect CRM Manager Multisite Business 3200 employees, but also externally for our partners – from customers to is important for practical reasons Unit, Beijing & Suzhou business partners to suppliers. Thanks to our values, they know how we because we simply feel better when work, they know what we value, and they can trust us as a solid pillar in we are respected. Customer satisfaction is the com- the partnership. mon target for our daily output. Sometimes ‘customer’ means pres- The interpretation of Enics values of course is not static, but is linked to the sure to make quick decisions and changes in our environment and our markets. Nevertheless, they remain its take fast action to respond, but core. Would you believe in the Enics’ mission and vision, in Enics as your this is much outweighed by the long term business partner, if the values changed now and then because fact that customer satisfaction is of short-term circumstances or a new manager? No! Continuation in act- Marian Schreier the motivation for improvement, ing and living according to our values builds the trust I know is substantial Manager Development Support, innovation and success as well as for the success of our customers, and therefore, Enics. Only on the solid Enics Switzerland personal contentment. floor of common understanding can you establish open communication For me, innovation means develop- and transparent interaction – bridging cultural backgrounds. As a result, ment, creativity, competitiveness expectations can be positively exceeded. The gain is a successful partner- and competitive power. It means ship with high added-value. also thinking about things in a I can’t recite every single line of the value ”wording”, but I have them in my different way – strategically and heart and in my mind. I face them with a deep pleasure every day, working creatively: let your mind walk off Anna Carlstedt with colleagues who share the same mindset. And they help me, help us, the beaten path and abandon my Manager Demand Supply Chain to make decisions I trust in. Because if I decide according to our values – own fixed views. Management, Enics Sweden customers’ respect, responsibility, success and innovation – the outcome will be beneficial. Responsibility means, for me, that we completely own our situation. CUSTOMERS It influences my work in the way that I am always trying to improve our situation in order to be able RESPONSIBILITY Emöke Sogenbits to achieve and exceed the results Operations Manager, Enics Eesti we want.

RESPECT I think there are only a few other industries than EMS where success depends so much on working together and having the same goals, ambitions and targets to be successful. Therefore, for me success means working shoulder to shoulder with our suppliers, employees and customers in order to form a successful value chain – and en- SUCCESS joying the possibility to come to work for a successful company INNOVATION every morning.

12 Enics Company Review 2011-2012 13 ENICS MANAGEMENT TEAM CONTACTS

Headquarters Multisite Business Unit 1: Enics Slovakia s.r.o. Enics AG Phone +421 42 3247 010 Phone +41 44 515 02 15 Enics Sweden AB Fax +421 42 3247 037 Fax +41 44 515 02 33 Phone +46 (0)21 17 93 00 Trencianska 19 Thurgauerstrasse 40 Fax +46 (0)21 17 95 00 01851 Nova Dubnica CH-8050 Zürich Västerås Site SLOVAKIA Switzerland Kontraktsvägen1 Postal address: SE-721 69 Enics Sweden AB Enics AG SWEDEN Phone +46 (0)40 24 30 00 P.O Box 5456 Fax +46 (0)40 24 30 01 CH-8050 Zürich Enics Eesti AS Malmö Business Unit SWITZERLAND Phone +372 7361 777 Skeppsbyggaregatan 9/ Fax +372 7361 783 P.O Box 417 Vantaa Office E-mail [email protected] SE-201 24 Malmö E-mail [email protected] Valga mnt 7a SWEDEN Enics Finland Oy 61504 Elva Jaakonkatu 2 ESTONIA Enics Schweiz AG FI-01620 Vantaa Phone +41 (0)56 299 44 33 FINLAND Enics Finland Oy Fax +41 (0)56 299 20 08 P.O Box 90 Austrasse/P.O Box 5300 Enics Sourcing Office Gunnarlankatu 5 Turgi Enics Hong Kong Ltd. FI-08101 LOHJA SWITZERLAND Phone +852 2413 7211 FINLAND Fax +385 2413 7311 Suite 1102, Chinachem Tsuen Wan Plaza Multisite Business Unit 2: No 455-457 Castle Peak Rd. Tsuen Wan, N.T. Enics Electronics HONG KONG (Beijing) Ltd. Phone +86 10 6789 2929 Fax +86 10 6789 2327 A6 Xin Cheng Industrial Park Ke Chuang No.2 Street BDA, Beijing 100023, PRC CHINA

Enics Electronics (Suzhou) Ltd. Phone +86 512 5290 0668 Petri Helin Dirk Zimanky Petri Suikkanen Ari Räisänen Fax +86 512 5290 6830 Senior Vice President, President Senior Vice President Senior Vice President, #7 building, Xin Hang Industrial Customer Relationship and CEO and CFO Supply Chain Square, Huang pu jiang Rd, Management and Operations Dong Nan Economic Development Zone, Changshu 21550 CHINA

14 WWW.ENICS.COM