2013|14 Open spaces 96 % KWFHart bei 100 % YISDobl KWF Betriebsanlagenverwaltungs GmbH YLOG Industry Solutions GmbH 99,67 % KAG GrambachKIS bei Graz KSILeoben DFTBielefeld KUSKennesaw KWF KBESint Niklaas KZAKosmosdal 60 % 100 % Germany USA 0,33 % Belgium South Africa KNAPP IT Solutions GmbH KNAPP Systemintegration GmbH 100 % 100 % 100 % Dürkopp Fördertechnik GmbH KNAPP Logistics & Automation, Inc. KNAPP Benelux BVBA KNAPP Logistic South Africa (PTY) LTD KITMilan KUKLong Crendon KNLRoermond KIBMadrid 100 % Italy 100 % England 100 % The Netherlands 100 % Spain KNAPP Italia S.R.L. KNAPP U.K. Limited KNAPP Benelux B.V. KNAPP Logistica Automatización Ibérica, S.L.

KMIMadrid 80 % Spain KNAPP Montajes Industriales, S.L.

KDKNæstved SaoKSA José dos Pinhais KDEHeusenstamm 100 % Denmark 70 % Brasil 100 % Germany TheKNAPP Group AG (KAG) KNAPP A/S KNAPP Sudamérica Logistica e Autom. LTDA KNAPP Deutschland GmbH Hart bei Graz KSEÅstorp KAULindfield KCNBeijing KPLWarsaw 100International % Sweden 100 % Australia 100 % China 100 % Poland KNAPP AB KNAPP AUSTRALIA Pty Ltd KNAPP Logistics Automation KNAPP Polska Sp. z o.o. Systems (Beijing) Co., Ltd.

KNOSandvika 100 % Norway KNAPP AS

KFRLognes KCHZofingen KRUMoscow 100 % France 100 % Switzerland 100 % Russia KNAPP France SARL KNAPP Logistiksysteme GmbH OOO KNAPP Key indicators at a glance 2013/14 Change 2012/13 Turnover 383,752 1.1% 379,499 EBITDA 23,428 4.7% 22,381 EBITDA margin 6.11 % 3.5% 5.90%

Umsatz EBITDA EBITDA-Marge % EBIT EBIT-Marge % EBIT Backlog (Auftragsstand) 15,430 5.2% 14,666 MitarbeiterEmployees

400 25 8 20 5 EBIT margin350 4.02 % 4.0% 3.86% 2500 2.444 350 7 EBT 300 14,238 6.7% 13,345 2.256 20 4 2000 2.082 300 6 15 EBT-Margin250 3.71 % 5.5% 3.52% 1.823 250 5 15 3 1500 1.605 Equity 200 60,257 12.1% 53,737 200 4 10 150 10 2 1000 150 3 Equity ration 23.5 % 3.0% 22.9%

100 100 2 5 Return on equity 23.6 % -4.8% 24.8% 5 1 500 50 1 Return on50 assets 5.6 % -1.8% 5.7% 0 0 0 0 0 0 0 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 Backlog 09/10 10/11 11/12 12/13 330,04813/14 24.4% 265,352 09/10 10/11 11/12 12/13 13/14 Employees 2,444 8.3% 2,256

Umsatz UmsatzTurnoverUmsatz in EBITDAmillion euros EBITDA EBITDAEBITDAEBITDA-Marge in million % eurosEBITDA-MargeEBITDA-Marge % EBIT % EBIT in million eurosEBIT EBIT EBIT-Marge % EBIT-MargeEBIT-Marge % % Backlog (Auftragsstand) Backlog (Auftragsstand)Backlog (Auftragsstand) Mitarbeiter MitarbeiterMitarbeiter

400 400 400 25 25 25 8 8 8 20 20 20 5 5 5 350 350 350 2500 2500 2500

350 350 350 379,5 383,7 7 23,4 7 7 22,4 300 300 300 20 20 20 4 4 4 2000 2000 2000 300 300 300 326,9 6 6 6 15 15 15 19,1 19,3 14,7 15,4 250 250 250 250 250 250 5 5 5 272,2 15 15 15 3 3 3 1500 1500 1500 11,9 200 200 200 200 200 200 4 4 4 10 11,3 10 10 204,6 150 150 150 10 10 10 2 2 2 1000 1000 1000 150 150 150 3 3 3 9,4 100 100 100 100 100 100 2 2 2 5 5 5 5 5 5 1 1 1 500 500 500 50 50 50 50 1 1 1 2,9 50 50

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 09/10 10/11 Financial11/12 year12/13 13/1409/10 10/1109/10 11/1210/11 12/1309/1011/12 13/1412/1310/11 13/1411/12 12/13 13/1409/10 10/1109/10 11/1210/11 09/10 12/1311/12 10/11 13/1412/13 11/12 13/1412/13 13/1409/10 10/1109/10 11/1210/1109/10 12/1311/1210/11 13/1412/1311/12 13/1412/13 13/1409/10 10/1109/10 11/1210/1109/10 12/1311/1210/11 13/1412/1311/12 13/1412/13 13/1409/10 10/1109/10 11/1210/11 12/1311/1209/10 13/1412/1310/11 13/1411/12 12/13 13/1409/10 10/1109/10 11/1210/11 12/1311/12 13/1412/13 13/14 09/10 10/11 11/12 12/13 13/1409/10 10/1109/10 11/1210/11 12/1311/12 13/1412/13 13/14

Umsatz EBITDA EBITDA-Marge % EBIT Umsatz EBIT-Marge % Umsatz EBITDA BacklogBacklog (Auftragsstand)EBITDA (OrderEBITDA-Marge status %in million euros) EBITDA-MargeEBITDA EBIT% margin in % MitarbeiterEBIT EBIT-MargeEBIT % – margin in % EBIT-Marge % Backlog (Auftragsstand) Backlog (Auftragsstand) Mitarbeiter Mitarbeiter

400 25 8 20 400 5 400 25 350 25 8 8 20 250020 5 5 350 350 2500 2500

350 7 350 350 7 330,1 7 300 4,4 300 300 20 4 20 20 7,0 2000 4 4 2000 2000 300 6 15 300 300 6 6 15 15 4,0 Open spaces 250 6,11 3,8 250 250 256,2 265,4 5,9 5,9 250 5 250 250 5 5 3,5 15 3 15 15 1500 3 3 1500 1500 Annual Report and Sustainability 2013|14 200 200 200 200 4 10 200 200 4 4 4,6 10 10 150 150 150 10 2 10 10 1000 2 2 1000 1000 150 3 150 150 145,7 3 3 100 122,2 100 100 100 2 5 100 100 2 2 5 5 1,4 5 1 5 5 500 1 1 500 500 50 50 1 50 50 50 1 1 50

0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/1309/10 13/1410/11 11/12 12/13 09/10 13/14 10/11 09/1011/12 10/1112/13 11/1209/1013/14 12/1310/11 13/1411/12 12/13 09/10 13/14 10/11 09/10 11/12 10/11 12/1309/10 11/12 13/1410/11 12/13 11/12 13/14 12/13 13/14 09/10 10/11 09/10 11/12 10/11 12/13 11/12 13/14 12/13 13/14 09/1009/10 10/1110/11 09/10 11/1211/12 10/11 12/1312/13 11/12 13/1413/14 12/13 13/14 09/10 10/11 11/1209/10 12/1310/11 13/1411/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 09/10 10/11 11/12 12/13 13/14 Financial year Open spaces

Contents 08 Project: future 10 Innovation and progress 14 Recipe for success 18 A strong supplier network 19 Service with enthusiasm 26 Company 27 Supervisory board report 28 Room for creativity – interview 39 Controlling bodies 40 KNAPP in motion 46 Company profile 48 The history of KNAPP AG 54 Activities and projects 56 Apologistics 60 Grene 64 Basiq Dental 68 Migros 72 Brax 76 MSG 80 LAS Solutions 84 In retrospect 90 Generations and growth 92 Shouldering responsibility 96 Apprenticeships with future prospects 100 The Second Chance 102 People in intralogistics 108 Elements for success 113 Generations under one roof 120 Generation management for systems 124 Facts and figures 126 Economic environment 131 Consolidated financial statement

6 | KNAPP AG KNAPP AG | 7 Open spacesProject: future

future The dynamics of progress lies in research and development. It does, however, only count as progress, if the customer also accepts the innovation. This year, we managed to achieve this once again.

Franz Mathi, COO KNAPP AG Project: Project:

KNAPP AG | 9 Open spacesProject: future

The start of a new era Innovation The industry is poised at the beginning of a new era – Industry 4.0. After the past three industrial revolutions – first steam power, and progress on to assembly line production and then the digital revolution – the era of cyber-physical systems and the Internet of Things now Not only in tune with the latest developments, but always a begins. The networking between man and machine is at the centre step ahead. Research, development and innovation have of the Industry 4.0. The goal is the always ranked high in the tradition of KNAPP. In more than intelligent, networked factory. Or in KNAPP’s case – the intelligent, 60 years of company history, KNAPP has been making a networked intralogistics system. significant impact on intralogistics. These ground-breaking One aspect is the use of “A new challenge waits industrial robots. Robotics is still a ™ for me each day, which innovations include the SDA autopicker, the OSR Shuttle recent topic in intralogistics, with automatic storage system or the first UNIX-based software tremendous potential for growth but is what really fascinates me also posing significant challenges. about my work in prototype applied in industry. KNAPP’s newest developments, such For years, it was thought that the as the KiSoft Vision technologies, the KNAPP-Store or the reliable process of bin picking could construction. Experience and not be automated. The demands knowledge are naturally important Pick-it-Easy Robot for robotic picking, address the current on the robots and sensors are very trends such as the zero-error strategy or same-day/next-day high. Object recognition and the for realizing new requests, but above pick process are highly complex all, one needs good intuition.” delivery, and forge the way into the new era of intralogistics. and many components must

Anton Kienreich Prototype Constructions KNAPP AG | 11 OpenProject: future spaces Open spacesProject: future

coordinate harmoniously for this process to be successfully implemented. Why rely on robots at all? The potential these technologies tap into is tremendous. Where the human reaches the limit of his capacity, the robot can take over. A robot can, for example, perform very monotonous and strenuous actions over a long period with unchanging quality and performance. Because Leaving familiar territory of this characteristic, robots are particularly It is not always apparent right from the start applicable for use in shift operations with high that a path is leading in the wrong direction but throughput and low error tolerance. Especially we can learn from the experience, turn around current and future legal requirements, quality and take the right path. Such a realization assurance and the tracking of articles along requires courage but is also the basis that the supply chain can be realized with the help makes success possible. KNAPP, therefore, of robots. subjected the first version of the picking robot In 2010, a core interdepartmental team of to a new validation and a redesign shortly about 15 KNAPP employees was formed for before it was ready for production, which had the development of a picking robot, especially effects on the components used as well as for the use in the pharmaceutical supply chain. on the robot processes. Next, development The development of the first generation picking expertise for the gripper components was robot was completed in 2012. acquired – this led to two patent registrations “I openly face new challenges with for the articulated arm robot and robot gripper. Furthermore, several grippers were developed the idea that I can overcome them. In that are automatically changed to handle a my 37 years at KNAPP I have certainly wide variety of articles. Integration competence was established in-house as well. In order Future-oriented technologies faced quite a few difficult undertakings. to realize the customized image processing The Pick-it-Easy Robot is an important step Knowledge, experience and a fine touch, technologies and applications as envisioned, towards a new era of intralogistics – the picking KNAPP brought two highly-specialized robot unites high performance with maximum combined with the courage to move in suppliers on board. flexibility and error-free picking in one system. new directions and to think in new ways The processes were optimized from the The robot has become a co-worker of man logistical point of view, which provided the – better distribution of the work load and have allowed me to find a solution for system with more flexibility. The new generation up to a fourfold increase in productivity are every task I have faced so far. ” now makes it possible to pick several items possible thanks to the Pick-it-Easy Robot. per line and to pick from a container until it is One of the robot’s great advantages is that it Anton Kienreich completely empty. KNAPP was, thus, able to can be retroactively integrated into existing Prototype Construction, find a solution for a task that the industry had intralogistic systems. With the development of at KNAPP since 1977 been coping with for many years. The Pick- Pick-it-Easy Robot, KNAPP has not only hit an it-Easy Robot was ready for production and important milestone in intralogistics, but has presented at the CeMAT 2014. The first Pick-it- also added a valuable solution component to Easy Robot also started operation in 2014 for the zero defect warehouse - the warehouse of the KNAPP customer Basiq Dental. the future, where errors are a thing of the past.

12 | KNAPP AG KNAPP AG | 13 OpenProject: future spaces Open spacesProject: future

Recipe for NOWEDA and KNAPP are connected by a get the contract. The details of the contract partnership of more than 2 decades: What are must be worked out, checked and agreed the advantages of cooperating with the same upon in advance. Tender specifications and partner for so many years? What were the special cost calculations must be generated and moments or the highlights from your perspective? communicated. For all these efforts the success tenderer must include a markup (risk) in his Kajo Paulweber: Commercial enterprises offers. generally discriminate between customers. With a 100 percent customer, the risk For 75 years, the pharmacy cooperative NOWEDA eG has been It is easy to understand that a 100 percent associated with doing the preliminary work for making an important contribution to the supply of medicines. customer and long-term partner is treated an order and then not getting it is almost zero. differently than a C or D customer. For Accordingly, the offers can be more favourably NOWEDA is involved with 16 locations in Germany, a location in NOWEDA, the availability of a technology plays figured. Moreover, there are cost degressions Luxembourg as well as a share in Switzerland for the provision a very important role. The goal is customer effected in projecting, service and maintenance satisfaction and technical failures simply do if similar or, even better, identical systems are of owner-operated pharmacies. NOWEDA is very successful not help us reach this goal. Since we are a 100 being used. in their sector and has been relying on their partnership with percent customer and a long-term partner, we Success is made by people. In benefit from the high degree of attention that communication, the meaning does not really KNAPP for more than 20 years. we unquestionably receive from KNAPP. lie in what is actually said but rather in what Kajo Paulweber, head of the department Organization, In a long-term partnership, it’s not about the other person understands. If you want to selling something, but about generating be heard, you simply must have the attention Technology, IT and Quality Management at NOWEDA talks added value and not endangering a valuable of your partner. And here we have come full about the advantages of a long-term partnership and the partnership. In a tender procedure, the circle because a 100 percent customer will tenderer must reckon with the fact that despite always enjoy a different level of attention than future challenges. performance up front, he may eventually not a so-called smart shopper.

14 | KNAPP AG KNAPP AG | 15 OpenProject: future spaces Open spacesProject: future

“We value the people at KNAPP and their Special moments from the partnership with KNAPP cannot be listed so easily. There have commitment and dedication. We appre- simply been too many. There is, however, one ciate the good performance, the mutual experience that we particularly remember: One of KNAPP's competitors asked for trust and the freedom to speak openly.” the chance to place a competitive offer. He promised that the price would be considerably Kajo Paulweber, different from KNAPP's. His prediction turned Head of Organization, Technology, IT and out to be true. The price was in fact clearly Quality Management, NOWEDA Essen different, but it was clearly much more expensive. We were speechless because he hadn’t even allowed himself a margin. Gerald Hofer, today CEO but at the time responsible for sales, made a pithy comment about the whole situation: “Mr. Paulweber, you should by all means ask for an offer from the competitor every five years. Then you will always know what KNAPP does for NOWEDA How was KNAPP able to support NOWEDA on its What challenges does the future hold that in terms of pricing.” Even more remarkable course of success? can be taken on together? was the comment that would not seem to fit the cheapest price: “NOWEDA is our most Kajo Paulweber: KNAPP was thoroughly K. P.: The cost pressure in our profitable customer!” attuned to NOWEDA’s needs. Our sector will continue and is more likely Naturally, we also remember crises requirements were very high because of the to increase rather than decrease. caused by technical problems. But that’s demands we made of the technical installation Therefore, we need long-term 75 years Founded: mainly because in these situations the KNAPP for availability. For the 100 percent customer economic solutions. With this in mind, employees were especially dedicated and NOWEDA, KNAPP was and is still ready common parts management for parts co-operative of did an outstanding job. We could name many to go far beyond the beaten organizational and an enterprise release of software pharmacies 1939 names, but we won’t because we don’t want paths. Communication beyond all hierarchical solutions take on a special meaning. by 7 pharmacists to risk forgetting any of the top people. In boundaries is possible. This brings speed into A technical solution is good if one NOWEDA Graz there are “NOWEDAners” employed at the picture and switches off filters. can easily understand it, meaning that it KNAPP! is simple. Standard solutions should be used where they raise the availability of How does such a long, successful cooperation the technology. They should be avoided Today: come about? What do you particularly appreciate in situations where the solutions must regarding your cooperation with KNAPP? be above and beyond the competition. 19 The fact of past success is no Co-operative of K. P.: partnership and long-term economic guarantee of future success. With subsidiaries in success must be more important than short- every single order, we must prove term pecuniary advantages. It must be a win- ourselves to be the right partner for 8,600 Germany, Luxembourg win situation. We value the people at KNAPP our customers. NOWEDA will not be pharmacists and their commitment and dedication. We able to achieve this without technical and Switzerland appreciate the good performance, the mutual support. This is why our partnership trust and the freedom to speak openly. with KNAPP is so important to us.

16 | KNAPP AG KNAPP AG | 17 OpenProject: future spaces Open spacesProject: future

“What I find especially exciting is working with people from different cultures in a global supplier market.”

Bernhard Halbwirth: A strong Head of Global Procurement Project & Invest, bei KNAPP seit 1996

What is the recipe for a successful, long-term supplier network business partnership? Mutual trust and a shared goal are the Procurement on a global scale whilst delivering the highest level of foundation of any long-term partnership. KNAPP and Nedcon decided to break the quality and a top-class service requires a strong supplier network and rules of what a business partnership usually a procurement team geared towards the international market. For many means in order to establish a business relationship based on open communication years, KNAPP has focussed on developing a global network of strong and an exchange of knowledge, which suppliers and on maintaining ongoing partnerships. One of these long- is geared towards long-term, sustained success for everyone involved. standing and successful partnerships has been with the Dutch company ™ Nedcon BV, a supplier of the rack systems used in the OSR Shuttle What do you find particularly interesting about which is being installed all over the world. your job? What I find especially exciting is working with people from different cultures in a global Think global – buy local supplier market. We in Global Procurement consider us as internal business partners: we The traditional role of our procurement value creation. Our procurement team are in charge of a global partnership network team has evolved over time. Whereas forms the bridge that links our customers in which we organize a complex supply chain previously their main job was to and suppliers. Negotiating skills and with a high focus on value. supply production with raw materials value orientation along the entire supply and products at low prices, today's chain are necessary in order to fulfil procurement department takes on a wide the customers' various requirements What is it that motivates you? range of important tasks. At present, a perfectly and to help realize faster What motivates me is realizing complex project is underway to modernize our reaction times. True to the motto think objectives in a perfectly coordinated team procurement department in order to give global – buy local, KNAPP is committed based on partnership, so that, at the end of it an integrated, strategy-driven focus and to relying on a network of branches with the day we have customers who are satisfied allow it to make a greater contribution to local procurement teams that aim to buy with our innovative solutions.

18 | KNAPP AG KNAPP AG | 19 OpenProject: future spaces Open spacesProject: future

„We drive development! Highlights of the cooperation: Nedcon In our mission to find the delivers intelligent rack Development of solutions for the perfect solution, we have 56 projects OSR Shuttle™ rack systems for worked together with KNAPP to implemented together ™ continuously push the boundaries worldwide the OSR Shuttle Cooperation with 40 years together since 2010 of technical possibilities, KNAPP since 2000 of experience and expertise in redefining them along the way.“ storage system construction

Michiel Nijhout General Director, Nedcon 1+1 is better than 2

KNAPP and the Dutch company Nedcon featured rails for the shuttles and a load BV have been working together for over 15 capacity of up to 50 kilos. The modular years. During this time many joint projects construction and standardized components cut involving automated rack systems have been planning, production and construction times implemented. In 2010 KNAPP started looking and improved cost efficiency. The development for a partner to assist the company in the teams of both companies cooperated closely goods in the regions where they are needed. development of a new, high-performance to find new and innovative ways to optimize the This benefits not only customers, who can, for rack system for the OSR Shuttle™. Nedcon entire shuttle system. example, take advantage of shorter delivery submitted the best bid in terms of technical In recent years, this partnership has times for replacement parts, but also the experience and flexibility, but what really made seen 56 projects successfully implemented environment, as reduced transport times mean a difference was their desire to work together worldwide. However, KNAPP and Nedcon did

lower CO2 emissions. with us to develop a new product that would not stop there. Today they continue to work When selecting suppliers, KNAPP demands meet the dynamic requirements of the market. on developing new solutions in response to Nedcon the highest standards in terms of price, quality Nedcon specializes in intelligent solutions the changing market demands and customer and service, and strives to establish partnerships for high-performance storage systems and, requirements. Together they have developed Sector Intelligent warehouse solutions and long-term collaborations. The intralogistics with over 40 years of experience, it's hard to a new rack solution for the brand new OSR solutions implemented together with partners find another company with as much expertise Shuttle™ Eco along with a calculation tool Headquarters Doetinchem, The Netherlands are technically very complex. A well-established in the field of rack construction. That is why, that KNAPP uses during sales, thus enabling Main area of team consisting of KNAPP employees and when it came to developing a new generation the project cycle duration to be sustainably expertise Intelligent, fully-integrated rack solutions suppliers ensures that projects are realized of racks for the OSR Shuttle™ with the required improved. Innovation, a solution-based Cooperation with successfully and that optimal service is high standards, Nedcon was an ideal partner approach, process monitoring, commitment KNAPP since 2000 delivered, thus guaranteeing long-term success for KNAPP. and reliability are and will continue to be the and customer satisfaction. When exploring The cooperation resulted in an innovative, cornerstones of the partnership between Employees 400 potential solutions, suppliers are involved in the well thought-out and extremely economic KNAPP and Nedcon. A sound basis from Turnover 150 million euros process early on so that workflows and costs modular-construction rack system for the which to take on future challenges. can be optimized during the innovation stage. storage of containers and cartons which

20 | KNAPP AG KNAPP AG | 21 OpenProject: future spaces Open spacesProject: future

Service with

The best solution is always individual that customers have a contact person enthusiasm ...because each customer has his own available around the clock guaranteeing specific requirements and needs, which are prompt response. Additionally, the most based on ideally fulfilling the expectations modern support systems, such as KiSoft Our service for your success – always keeping this motto of the end customer. Therefore, services Web Eye, complement the communication in mind, KNAPP has created a wide spectrum of services must always be attuned to the individual with the customer. KiSoft Web Eye is a requirements, business models and revolution in customer service which offsets with the service portfolio System Support 360°+ that can be components, and must naturally offer spacial and temporal distances. Through a flexibly adjusted to the needs and goals of each customer. sufficient flexibility to allow the desired head-mounted display worn by the service synergies to arise and to support operation. employee of the customer on site, the Maximum performance capacity and availability for the life With the System Support 360°+ KNAPP KNAPP service technician basically sees of the system stand in the forefront as well as comprehensive offers its customers a comprehensive through the eyes of the employee on site and portfolio of services, tailored to meet can give specific instructions, for example, support and training for employees working with the individual needs and flexible enough to for the replacement of a component. With technologies and in the processes. 360°stands for all round be adjusted to new demands at any time. KiSoft Web Eye, KNAPP opens up a new With the new service concept, KNAPP is dimension of communication in customer care of the system, while the + stands for the individual not only solution provider, but also service support. connections and complementary products that are necessary provider. The service portfolio is rounded out by consulting services and services for in between the services to provide a holistic service. With Innovative and always at your side the ongoing process optimization, such this approach, KNAPP pursues its goal to not only provide Communication, transparency as the Operation & Logistics Support and customer proximity stand in the (O&LS). Here, processes are analyzed and service, but to wow customers with its service, the + being forefront of customer care at KNAPP. The potentials for optimization explored to reach that certain something that distinguishes good service from internationally-oriented customer service the maximum performance and availability comprising 33 subsidiaries and service of the system and to accomplish long-term outstanding service. partners as well as a 24/7 hotline ensure investment security.

22 | KNAPP AG KNAPP AG | 23 Open spacesProject: future

“My personal recipe for success: Openness, honesty and trust. It is essential for me that our customers know that their requests are important to me and that they can trust me. As soon as a customer replaces supplier with partner in his vocabulary, I know that I am on the right path to customer What is your daily routine? customer does not depend just satisfaction.” Carolína García Tornero: Every on my person, but depends on work day demands flexibility various people and departments in Carolína García Tornero and creativity: The optimal our company, cooperation across performance of the logistical the participating departments is system and consequently the extremely important. These daily satisfaction of the customer are contacts and interactions are an the goal and define my entire important part of the success agenda. of my work and are also very enriching for me personally.

What do you find particularly fascinating about your work? What is the significance of strong C.G.T.: I approach our customers customer service? Carolína García Tornero with respect and interest. It C.G.T.: It is not just keeping your Service Key Account Manager, is always a new journey that customers, but keeping them at KNAPP since 2001 connects me to foreign cultures enthusiastic over the long run and continents. I try to seek an that is what I call a one-of-a-kind Carolína García Tornero has been working at KNAPP appreciative understanding of service. I see all the employees since 2001. As a Service Key Account Manager, she the individual requirements in in Customer Service as KNAPP focuses on the service concerns of some of KNAPP’s the cultural context with every ambassadors: Our attitudes, key customers. She is a personal, direct contact customer, and try to understand responses and behaviour partner and is, therefore, the interface between the how they perceive the world. For significantly influence KNAPP’s companies. Two of her main responsibilities are the this I need involvement, flexibility image. We, therefore, play an development of tailored service strategies and the and a lot of humour. Since the important role for our company further development of the partnership with these overall result and the overall as far as customer loyalty is strategically important customers. impression we make on the concerned in the long run.

24 | KNAPP AG KNAPP AG | 25 Open spacesCompany Supervisory board report In the past fiscal year, the Super- The Annual Report and the Group visory Board carried out its duties as Financial Statements of the KNAPP AG set forth by law and by the Articles of for the period ending March 31, 2014 Association, advised the Managing were provided with the unqualified au- Board on a regular basis regarding the dit opinion by PriceWaterhouseCoo- affairs of the company management pers Steiermark Wirtschaftsprüfung and monitored its activities. The Mana- und Steuerberatung GmbH. It was fur- ging Board provided recurrent, prompt thermore determined that the Manage- and comprehensive information to the ment Report of the Managing Board is Supervisory Board on the economic compatible with the Group Financial position and development of the com- Statements. pany as well as on important business The Supervisory Board has dis- cases. cussed and checked in detail all the do- The Supervisory Board conducted cuments for the annual financial state- four sessions in the fiscal year 2013/14, ments with the auditor and approved in which the members of the Managing them in their present form. Regarding Board reported on the developments in the use of the profits, the Supervisory their business areas as well as on the Board endorsed the proposal made by other companies in the Group, and the the Managing Board. Supervisory Board passed resolutions The Supervisory Board wants to pertaining to current topics. Particularly thank all the business partners for their important events in 2013/14 included trust and all the employees for their the foundation of the YLOG Industry hard work in the challenges of the fiscal Solutions GmbH, the foundation of a year 2013/14. The chairperson strongly subsidiary in Australia, the construction emphasizes the stability of the compa- of an assembling hall on the Hart bei ny, the family-dominated owner struc- Graz property obtained in the previous ture as well as the preservation and fiscal year, and the opening of the com- expansion of the existing locations. pany restaurant in Leoben.

Hart bei Graz, June 2014

Herbert Knapp,

Company Chairman

26 | KNAPP AG KNAPP AG | 27 OpenCompany spaces Open spacesCompany

“This year we were able to win strategically important projects. This demonstrates Room for creativity that we are on the right track.” Successful with a strong team

2013/14 was an eventful fiscal year for the KNAPP Group. It was a year Franz Mathi, COO marked by new projects with new and repeat customers, numerous What were the highlights of the year? product innovations and new members joining the company group. at KNAPP since 1999 Franz Mathi: The year included a clear commitment to the Franz Mathi began his This success was primarily achieved thanks to the around 2,500 numerous highlights for us. We Austrian locations, even though career at KNAPP as project employees, who, as a strong team, strive for customer satisfaction were able to win strategically the prevailing circumstances are manager. From 2002 to 2007 important projects – and difficult. he was responsible for the across the globe. The Managing Board trio comprising Gerald Hofer, especially good news is that many One highlight worth mentioning area Product Management Franz Mathi and Christian Grabner talk about the past fiscal year and of our existing customers plan is that we have expanded our and Innovation. Starting in their future with us in the long shuttle portfolio with the YLOG- 2007 he took over company the challenges of the future. term. This creates stability and Shuttle and are now positioned management for the KNAPP demonstrates that we are on the to serve the production logistics right track. We also successfully branch. This was accomplished Logistik Automation GmbH put some lighthouse projects by acquiring technology and (from July 1, 2009 KNAPP How was the fiscal year 2013/14? with new system solutions into by establishing YLOG Industry AG) and was named Chief operation in Europe as well as Solutions (YIS). Also noteworthy Operating Officer on the Christian Grabner: The fiscal year pleased with the record level of orders North and South America. are the new technologies and Managing Board in 2012. 2013/14 was very challenging, but also – in the past fiscal year we received About 80 percent of all system solutions that we brought very successful for us. We were able orders totalling more than 454 million investments are used to on the market in the past year. to reach our planned turnover and also euros. Particularly positive was that strengthen the company locations. With the Vision technology, Pick- to further increase the results. We are we were able to convince both existing This year, for example, the Styrian it-Easy Robot, KNAPP-Store and at a level of results that allows us to and new customers of the advantages locations were in the focus with many other innovations, we have make investments for the future and to of the KNAPP solutions. We welcomed the construction of new production once again brought technologies remain a long-term and reliable partner 200 new employees into the company halls in Leoben and Graz, but to the starting line that will have a for our customers. Our customers in order to offer our customers the best also with the construction of a lasting influence on the sector. place a great deal of trust in us. We are possible service. daycare facility. We have made

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KNAPP has always been closely connected with the pharmaceutical sector. What are “With the zero defect the new challenges for the pharmaceutical supply chain posed by legal changes, warehouse we generate such as the GDP guidelines (Good Distribution Practice), and what role do trouble- precision and create a free and efficient intralogistics play in the fulfilment of these new tasks? Gerald Hofer: The pharmaceutical can monitor all the manual and self-learning organization.” sector has always had to deal with automated processes across the more than just getting the right entire supply chain. This means goods ready for sale at the right we capture data for quality features time. Here, we have to consider such as the article serial number patient safety, quality, continuous in all relevant steps using image traceability and documentation. recognition and image processing Among other things, the GDP technologies. In the Direct2Patient guidelines mean that starting process we automatically label in 2017 the serial numbers of pharmaceutical articles, provide Gerald Hofer, CEO pharmaceuticals have to be tracked them with important information for end-to-end to the greatest possible the patients and check whether the at KNAPP since 1994 How have the core sectors and markets developed? extent. In addition, further quality packaging has been opened and After joining the company, Gerald Hofer assurance measures must now be must be removed from circulation. headed sales for Italy and in 1996 became Gerald Hofer: We can mostly in the foods sector. In general realized affecting things such as the With these processes we head of the area Marketing & Sales. say that all the sectors in retail we won some of the labelling on the packaging. Thus, generate not only the required In 2001 he made the move as Managing our focus have developed really big names in Europe GDP poses a challenge for the patient safety but also create a Director to the KNAPP subsidiary very well, beginning and we scored in internet entire pharmaceutical supply chain. self-learning organization at the with the pharmaceutical wholesale as well. Our advantage – where we same time. Any errors are detected KNAPP Systemintegration GmbH in sector. We serve the entire With our YLOG Industry can provide a clear competitive in the respective process step and Leoben. 6 years later he returned to the pharmaceutical supply chain Solutions we reach a new advantage for our customers – is handled there, providing not only management team in Hart bei Graz. In 2010 from producers to wholesalers customer group in the mid-size our experience, and the fact that our continuous documentation but also he joined the Managing Board of KNAPP and to the point of sale – the range where the trend is for system solutions cover the entire a targeted learning behaviour. AG and took on the role of Chief Executive pharmacy. We were also able smaller but smart investments. supply chain. We gained experience We are well-prepared for the Officer in 2012. to introduce solutions with With less than a year behind in the USA in the demanding field concept of GDP as well as for important new developments us we can already point to of Direct2Patient, the direct supply other guidelines outside Europe, for the direct-to-patient model. success in form of several from the distribution centre to the some of which are even stricter. I We were very successful projects. end customer. These experiences think we are in the position of being in the fashion and lifestyle All in all, we are very proud mean that we have a basis from THE partner of the pharmaceutical sectors and were able to win of the developments of the past which we can meet the new supply chain – our goal was to have over very large international fiscal year. As far as sector challenges which our customers the answers for our customers even brands – we are well beyond solutions as well as system are facing. before they had finished formulating the plan in this segment. We solutions are concerned we Our approach can be summed up the questions. We can be proud of are also pleased to have new have completely reached or with the term zero defect warehouse. the fact that we have achieved this customers and new solutions exceeded our strategic goals. In a zero defect warehouse we goal.

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“Our solutions offer our customers investment security and the necessary

flexibility to respond to the changing conditions.” Research and development have been very important at KNAPP. What innovations were brought to the market in the past fiscal year? Christian Grabner, CFO

Franz Mathi: Our comprehensive system new market demands. Our Pack2Patient competence and process know-how are is a successful new solution for direct united in the KNAPP Group as one of delivery to the end customer in the our biggest strengths. Every year we also pharmaceutical sector but is also a invest about 7 percent of the turnover in response to the new legal framework. We research and development and were, are particularly glad that we were able to therefore, able to develop many of our develop the Pack2Patient solution further ideas to be ready for the market in the past in order to create stand-alone products. years. Above all, our focus is not only on Our efforts regarding software have the classic development of applications, been tremendous – thanks to this we were Growth sector intralogistics: What developments are foreseeable? but also we have a strong focus on basic able to achieve great success in the area What advantages do the KNAPP solutions offer? technologies. For example, based on our of warehouse management of complex Vision technology, we were able to build systems. Through our subsidiary KNAPP Christian Grabner: Developments in the specialized solutions for this demanding up a comprehensive portfolio for various IT Solutions (KIS) we were able to roll out logistics sector are very rapid and diverse. business allow us to support our applications. The process of placing new our own ERP system in some projects for We have identified new requirements in customers in fulfilling these requirements technologies on the market reveals the key the first time. Our software competence in areas such as labour law, ergonomics perfectly. factors, some of them unforeseeable, that the past years has been heavily reinforced and energy efficiency as important The food retail sector is also we are dealing with in this sector. Looking and we have outstanding and motivated influencing factors and incorporate them experiencing the trend towards at the development of the OSR Shuttle™ employees. in the design of our solutions. automation. Great quantities of in the past 10 to 15 years, the shuttle We also set another milestone in Investment security is naturally very goods must be stored, picked and technology has developed in dimensions intralogistics: Our robot solution in important to our customers. Our low distributed efficiently. We also have a that we ourselves hardly thought possible. I connection with Vision technology can now complexity warehouse concept puts our comprehensive portfolio of solutions for think that, even regarding the trend-setting pick different articles from one container customers in a position to respond quickly these requirements. Vision technologies, application areas will and pick all articles from a container until and flexibly to changing conditions and to Extraordinary quality will more and develop that are not yet foreseeable today. it is completely empty. The industry has fulfil new demands easily. more become the decisive factor: With We have, of course, also further actually been working on this concept for One persistent trend is e-commerce the zero defect approach we make advanced our developments in the shuttle more than 10 years. Up to now no one had – everything that has to do with online error-free delivery and a self-learning area. Most notable are the free-moving found a satisfactory solution. However, shopping. Consumer expectation in organization possible. This is how we Open Shuttle and the YLOG-Shuttle, within the past year, we came up with a this segment is especially high. Every raise both customer and employee which now make a 3D matrix in a rack good solution – this really sets us apart as article must be available at all times and, satisfaction and give our customers a system possible. a company and clearly demonstrates our naturally, at the best price. Our highly decisive competitive advantage. New developments often arise from innovative power and expertise.

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The KNAPP Group is growing steadily and is now represented in 33 locations worldwide. What steps are planned for the future to strengthen the global KNAPP network?

Franz Mathi: We encounter development competencies. The various situations in the Asian market is developing very international environment positively. By now this market in which we move. Different seems to be ready for the type demands are coming from the of solutions we offer. The next KNAPP is increasingly positioned as partner to the industry: How does this translate into saturated European economy logical growth step is to invest advantages for KNAPP customers? in comparison to South America in production and assembly or China, for example. This is competency in these countries. Christian Grabner: For us, supporting our customers on their naturally very exciting for us, and This year we want to promote this being an industry partner means way into the future. the North and South American to the extent that by the end of the responding to our customers’ An industry partner also regions are also displaying a year we are ready to assemble requirements for both now and the provides optimal care not only tremendous growth potential. simple conveyor systems and future, understanding them and during the installation and startup Wherever we see potential like components on site. offering solutions in tune with the phases, but also supports and this, it naturally makes sense to It is very important to note requirements. Being an industry accompanies the customer in the strengthen our value creation here that the decentralization partner also means that we are long-term. This is why our scope and forces. Strengthening our of value creation across the continually and extensively engaged of services includes the service South American location is an globe naturally strengthens the with our core sectors and customers, package System Support 360°+. important part of our strategy; locations in Austria and Europe, even when there is no particular This package enables us to offer for example, we want to further and ensures competitiveness project on hand. As can be currently customized services based on build up our competencies in and growth over the long run. seen from the developments in the customer’s needs, therefore, installation and assembly, and Development and production are the pharmaceutical supply chain, securing the optimal performance to enrich the market with new initially done here and then rolled these efforts are an important factor throughout the life of the system and products. We have similar plans out to the subsidiaries worldwide, in having the system solutions creating success and competitive for North America, whereas here meaning that all the locations ready at the right time and in best advantage for our customers. we also want to strengthen the benefit.

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Work-life balance has become a very important issue: What type of support does KNAPP provide employees to balance work life and private life?

Gerald Hofer: In principle, this is openly and transparently with about corporate culture and the our employees, to inform them question is: “How can we create of problems and to celebrate an environment in which our success together. It is important to employees feel comfortable and us to live and promote this open enjoy working?” and appreciative company culture At KNAPP we have set out at all levels of the organization. to create a corporate culture of This positive energy, motivation, openness to experience and enjoyment of the work and of Christian Grabner, CFO open communication. We want our common success keeps us What goals do you want to set for the coming fiscal year? to promote the specific strengths moving forward. Teamwork and at KNAPP since 2006 of our employees. We think that the contribution of each individual Christian Grabner: We want to our customers with the best After joining the company, work should be enjoyable. Our is very important. Dismantling use the drive, the international possible care is also the reason Christian Grabner worked employees perform exceptionally, barriers within the organization is nature and the positive mood in why we plan to increase our staff for 2 years in Controlling and therefore, we want to create important to us, so that our team our company and harness it to by another 200 employees this and Cost Accounting and in a correspondingly positive spirit is experienced throughout create further growth. For the next year. 2008, headed the division. In environment in which they can the company, and everyone can year, we intend to reach a growth It is critical for us as an 2011 he changed to company develop their strengths. This may draw strength from it. Successes in turnover of 10 percent. On the international company to think management of KNAPP AG be done by creating new space – that you achieve together have one hand, we would like to achieve locally, to recognize, understand and accepted the duties of currently in the Bielefeld, Leoben more value than those you this with proven and tested and realize the local requirements and Graz locations – or with state- celebrate alone. solutions, but on the other hand of our customers in the best Chief Financial Officer in of-the-art workspace design and A positive side of the we would also like to score with possible way. Therefore, as the Managing Board of the new communication tools. We also international nature of the new system solutions. We expect mentioned previously, we will company in 2012. promote social contact between company is that our KNAPP our innovations that are on the strengthen our locations in the employees whether at the family becomes more and more verge of market entry to contribute USA, South America, China and company cafeteria, the daycare multicultural – we can all learn significantly these include the England. There, we will put even centre KNAPP-Kinderwelt or and benefit from each other. Our Pick-it-Easy Robot, Open Shuttle more emphasis on value creation through the sport and exercise goal is that the openness and and the KNAPP-Store. We also to realize and live up to the idea programs of KNAPPvital and appreciation in our company expect a positive impulse from our of thinking locally. We have a lot many other activities. culture can be seen by the newly established subsidiaries in store and look forward to an Today its all about the see- global public and experienced such as KNAPP IT Solutions, as exciting and successful new fiscal through company, and so it is throughout the entire KNAPP well as from our new subsidiaries year. logical for us to communicate group. in Australia and Russia. Providing

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Controlling bodies

The supervisory board The managing board

Hofrat Dr. Herbert Knapp Gerald Hofer, MBA Chairman Chief Executive Officer, CEO Em. Univ.-Prof. Dipl.-Ing. Dr. Günter Knapp Deputy Chairman Dipl.-Ing. Franz Mathi Chief Operating Officer, COO Univ.-Prof. Dr. Gunter Nitsche Mag. Helmut Grienschgl MMag. Dipl.-Ing. Dr. Christian Grabner Mag. Helga Knapp Chief Financial Officer, CFO Mag. Tanja Knapp Mag. Friedrich Möstl Dr. Peter Wenger The management team Dipl.-Ing. Eduard Wünscher1 Fumio Kobayashi1 Heimo Robosch Executive Vice President (EVP) Works council delegates: Ing. Wolfgang Silly Bernhard Rottenbücher Ing. Helga Stocker Executive Vice President (EVP) Heribert Plieschnig Dipl.-Ing. Sandra Hofmann1 Ing. Roland Graf1

1 bis 15.01.2014

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Innovation and tradition Partnership We have a tradition of Success through strong partnership KNAPP in motion innovation – we have more – we partner with customers, employees, than 60 years' experience and society, the environment and suppliers, and Our main tasks – what we stand for expertise in the logistics industry, regularly exchange with them all, which which has been influenced by enables us to create unique solutions and our innovations time and again. facilitates sustainable growth. Logistics moves the world In the future we would like to Our company is oriented towards … and this world is moving faster and faster. lead the way in new technologies sustainability and as a member of We are constantly surrounded by logistics in our daily lives, and and offer unique solutions on society we are aware of our responsibility if all cogs in the logistics chain fit together perfectly, we barely the market. We, therefore, place and look at all of our activities from an notice it. The medication we need is available at the pharmacy. great emphasis on research, ecological, economical and social point The supermarket shelves are always full. Our favourite author’s development, innovation and the of view. new novel is available online and a few clicks later a new pair of development of knowledge. shoes is also in our virtual basket and only 24 hours later we hold Our solutions reflect our the goods in our hands. motto – making complexity simple. Without efficient, intelligently automated logistics solutions, In an increasingly demanding the vast stream of goods moving around the world daily and the logistical environment, we design growing demands of our society in terms of product availability processes and systems efficiently could never be managed. and optimize their sustainability and profitability by cleverly implementing the right mix of KNAPP drives logistics technologies. Our technologies …and responds to current requirements. focus on individuals and their well- KNAPP is committed to precisely this task. As a supplier of all-in-one being. We automate processes intralogistics solutions, we see it as our responsibility to sustainably in sectors where it is useful shape and influence logistics worldwide through our work, making and practical, and provide our the name KNAPP inseparable from the term intralogistics. Our technologies to assist humans vision therefore is to make KNAPP the byword for logistics! elsewhere.

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Our principles – how we act

We build on strong foundations We encourage knowledge and progress We assume responsibility We engage in open dialogue The company values of reliability, courage, Building on our positive company values We contribute towards the Listening, understanding, openness, appreciation and creativity form and expertise, we utilise our knowledge wisely sustainable shaping of intralogistics implementing, improving – the foundation for sustainable growth and and encourage the systematic advancement of and endeavour to create constructive interaction is highly success and span across all our activities, like our industry-specific expertise. We are clearly environmentally sound, efficient and valued in our relations with a network. The company management actively committed to research and development socially beneficial logistics processes customers and employees as demonstrates these values in its relations with and use our experience to remain at the and achieve a balance between well as with society and the customers, employees and the environment. technological forefront. We encourage economic and ecological efficiency. environment. As an internationally These company values also shape the actions knowledge management and transparency This is how we can create sustainable orientated company, we are open and decisions of all employees. within the company – specific specialist corporate values. KNAPP has an to other cultures. We engage knowledge is managed centrally and provides integrated management system and is in open dialogue with all our employees with a valuable source of knowledge certified in quality management (ISO partners and interact with mutual We offer complete solutions in their daily work. 9001), occupational health and safety respect and esteem. Mutual trust KNAPP sees itself as a solution provider. The training and further education of our (OHSAS 18001) and environmental creates the basis for bold new We offer one-stop all-in-one logistics solutions employees is of great importance to us, and management (ISO 14001). Our solutions. from design to manufacturing, installation and therefore, we offer ongoing tailored training environmental policy, derived from comprehensive service. We concentrate on courses and modules in-house. We also support our company values, continues to be our core industries, namely pharmaceuticals, employees who undertake further training. In implemented across the company. fashion, retail & lifestyle and food retail and training managers, we provide targeted support Our employees provide offer unique goods distribution solutions and in professional and social development. Our extraordinary solutions daily, services to our customers in these sectors. employees have a high degree of personal guaranteeing the success and Reliability throughout projects and the courage responsibility and motivation. The leadership satisfaction of our customers. Targeted to tread unknown paths in order to find optimal style applied in the company, management by internal measures help us to support solutions distinguish our work. objectives, provides room for creativity which is our employees in enjoying a good necessary for advancing innovation. work-life balance.

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Make KNAPP the byword in Logistics

making complexity simple the Vision Partnership unique solutions what we stand for Customers Environment Innovation and traditiion Society Employees Suppliers

Our aim – what we want to achieve strong foundation comprehensive solutions reliable, open, Solution Provider appreciative, knowledge Constantly improving our world market leadership in selected creative, courageous experience The future holds new challenges. industries and strengthen our position as A noticeable trend on the market is the a partner to industry. A strong partner is an the Mission know how how we act need for all-in-one service providers that economically successful partner and we, offer consulting and services in addition therefore, aim to double our turnover by to implementing intralogistics solutions. 2020. Innovation and development are keys open dialouge Responsibility KNAPP has developed the group-wide to sustainable, forward-looking automation stakeholder research + development KNAPP2020 program in order to support solutions and continue to be encouraged. work life balance our customers in future challenges in its Optimum processes in project management capacity as a reliable partner and to offer and transparent communication enable us our employees a stable work environment. to provide a crucial competitive edge to our customers and create added value and sustainable solutions KNAPP2020 investment security. The KNAPP network Looking into the future spans the globe. Targeted measures serve strong partner constantly getting better The KNAPP2020 program has several to bring all members of the Group closer Objectives focal points that serve to ensure group- together in order to improve communication, wide growth and long-term success. The responsiveness and service and to make and aims company has set clear goals for the year use of synergies. 2020 and is working towards implementing The path to success requires the Innovation and development these on an ongoing basis. commitment and motivation of each added value and security of investment The vision make KNAPP the byword individual employee. We accept the for logistics is also the central theme of challenges of the future together and use KNAPP2020. Our aim is to further expand them to help us to improve and grow.

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Core industries: KNAPP AG Pharmaceuticals, Incoming orders 2013/14: fashion, general Company profile 454 EUR million Turnover 2013/14: retail & lifestyle, food retail and The success story continues which can also be applied to other industries strengthen its presence and gain important new 384 EUR million KNAPP AG operates internationally in the and sectors such as the growing e-commerce clients in Asia, Australia and Africa. tools & spares field of warehouse automation and warehouse sector. Numerous innovations such as the The international orientation of the company Employees worldwide: logistics and is a world market leader among OSR Shuttle™ that were originally developed and its focus on a few core industries has Research and development: suppliers of all-in-one intralogistics solutions for the use in the pharmaceutical supply chain a stabilising effect on the entire company, and automated warehouse systems. As are now also successfully used in all other core compensating for economic fluctuations in 7 % of total turnover 2,450 solution provider, KNAPP provides tailored, industries. The KNAPP subsidiaries Dürkopp individual markets. KNAPP AG aims to stay Employees in Austria: comprehensive intralogistics solutions. Its core Fördertechnik in Bielefeld, Germany, and ahead of the competition in the existing markets Certifications: competencies include development, planning, KNAPP System Integration in Leoben, Austria, and core industries but also plans to continually 1,800 installation, after-sales support and ongoing also have specialist expertise in the fashion tap into new markets. ISO 9001 Headquarters: Hart bei Graz consulting. and food retail industries. The startup of YLOG OHSAS 18001 Subsidiaries: The company received orders worth Industry Solutions in Dobl, Austria allowed ISO 14001 19 EUR 454 million and generated a turnover of KNAPP AG to expand its shuttle portfolio and Innovation – a success factor Representative offices: 13 around EUR 384 million in the 2013/14 fiscal incorporate an autonomous shuttle which is Not only in tune with the latest developments, year. Consequently, KNAPP AG remains on primarily suitable for the use in production but always a step ahead KNAPP AG focuses its path of continuous growth. As planned, the environments and small and medium-sized intensively on current and future trends in the previous year's result has been surpassed and companies (SMEs). intralogistics industry and consumer needs the company’s turnover has again reached a and incorporates this knowledge into product record high. Incoming orders increased by 15 innovations and developments. Innovation, percent as compared to the previous year. International orientation research and development, thus, play an From its headquarters in Hart bei Graz, important role in the company, with around regularly undergoes audits for certification and Austria, the KNAPP AG network spans the 7 percent of the turnover being invested in is certified in quality management (ISO 9001), Industry focus globe with 19 subsidiaries and 13 representative research and development annually. More occupational health and safety (OHSAS 18001) The core business areas of the company offices. Around 2,450 employees – around than 400 employees across the company work and environmental management (ISO 14001). include pharmaceuticals, fashion, general 1,800 of them in Austria – work every day in research and development, playing an active retail & lifestyle, food retail and tools & towards fulfilling the company’s vision to- make part in shaping the future of intralogistics. Spares. Particularly customers from the KNAPP the byword for logistics. The year's Industry partner pharmaceutical supply chain with especially highlights include the foundation of two new In addition to structural measures such high expectations regarding quality, flexibility subsidiaries to strengthen the KNAPP network: Taking on responsibility as the expansion of its headquarters and the and speed have trusted KNAPP AG’s OOO KNAPP in Russia and KNAPP Australia Being oriented towards sustainability, strengthening of its subsidiary network, the expertise in providing solutions for decades. Pty. Ltd. in Australia. KNAPP is aware of its responsibility towards continuous expansion of its service portfolio KNAPP was, for example, able to gain unique KNAPP AG is present on all inhabited customers, society and the environment, and and dialogue with customers are paramount, experience and expertise in the challenging continents. Europe, North and Latin America remains in regular exchange and dialogue as they enable KNAPP to better address the environment of the pharmaceutical industry continue to be significant markets but the with all stakeholders. KNAPP also has an needs of customers and to reinforce its position as far as single item picking is concerned company has also been able to further integrated management system. The company as a preferred partner of the industry.

46 | KNAPP AG KNAPP AG | 47 OpenCompany spaces Open spacesCompany The History of KNAPP AG

Engineer Günther Knapp founds a company for special machinery in 1972 the workshop in the cellar of his KNAPP receives its first order from Germany from the private home. The company has pharmaceutical wholesaler Krey & Figener. 1952 two employees. 1988 2000 Automated picking systems, The first ejector of the such as the SDA-2000, are SDA automated picking state-of-the-art. system is installed at OCP Melun in France. The company moves to Hart bei Graz, 1980 Austria, where the group headquarters is still located.

The first order from the USA with a focus on software signals the development of internati- 1960er 1990 onal markets.

KNAPP's first customers include Herba Chemosan, The first WMS goes into operation for a Stiefelkönig and Kastner & 1995 customer in Germany. Öhler. 2002 KNAPP recruits its 1,000th employee. KNAPP starts to expand: the first international subsidiary is founded with KNAPP Italia S.R.L. KNAPP treads new paths in the field of automated small-parts 1996 warehouses with the development of the OSR Shuttle™. The idea Günter Knapp has not given up on his to separate horizontal transport from vertical transport by using 1983 idea of an automated picking system shuttles and lifts linked to levels brings about a paradigm shift in Günter Knapp is well ahead of his time with his idea to build an for the pharmaceutical wholesale trade. intralogistics. automated picking system for the pharmaceutical wholesale Now the time has come – the first automated picking system is KNAPP acquires the companies LOGIM trade. The company primarily builds milk pumps, doughnut-filling developed. KNAPP, thus, sets new standards in intralogistics and and SYSLOG and develops its software The first OSR Shuttle™ goes into operation at Richter Pharma in machines, lifts and small conveyor systems at the time. distribution. 1999 competencies. Wels, Austria.

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At CeMAT 2011, KNAPP KiSoft Command is first put into operation. On July 1st, 2009 the company appears under its exhibits under the KiSoft Command has since shaped the appea- new name, KNAPP AG. motto intralogistics and 2004 rance of the KiSoft product series. 2009 sustainability. 400 customers visit MOVE – the 'Month of Visitors Event' – at the Styrian headquarters. For the first time the company has more than 2,000 employees.

KNAPP is certified according 2011 to the environmental norm 2008 ISO14001. KNAPP expands into Scandinavia by acquiring the logistics The first customer service company MOVING AB. The building of the new Corporate networking event takes place Headquarters and Development Centre in Hart bei Graz begins. . in Athens.

KNAPP presents a new product idea with KiSoft Vision at CeMAT 2005 The 1,000,000th SDA ejector is installed at the 2008 in Hanover. A prototype for picking glasses with augmented customer Kehr in Brunswick, Germany. reality technology is presented the following year. The next generation of the KiSoft WMS for the high-performance sector is brought into use at the customer JLP in the United 2010 Kingdom. KNAPP acquires the market leader for fa- shion logistics systems, Dürkopp Fördertechnik.

The Corporate Head- quarters and Develop- ment Centre in Hart bei The John Lewis Partnership Graz is opened. multichannel solution wins the Award of Excellence from the CILT Institute in The OSR Shuttle™ goes the Materials Handling Equipment and into operation at Her- Technology category. The 4th generation of the successful SDA ejector mes in Haldensleben, 2007 for automated picking systems comes onto the Germany and is, at the The pilot installation of the visual market. This generation sets the technological time, the largest shuttle picking technology, KiSoft Vision, is standard on the market and offers a wide range system worldwide. presented at the customer Magnum of functions, alongside the innovative ACS Medical in Tallinn, Estonia as part of automated system controller. the GIRP meeting.

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The 10,000th KNAPP showcases a range of shuttle is sold innovations at CeMAT Hanover, to the shoe including its comprehensive manufacturer Vision portfolio, the picking Clarks US at the robot Pick-it-Easy Robot, and 2012 start of the year. the KNAPP-Store. KNAPP is awarded the Grocer As part of the Site2020 project Gold Award and the Supply Chain 2014 comprehensive site expansion is Excellence Award for its innovative undertaken at the headquarters in Hart bei The picking robot, Pick-it-Easy automation solution at Boots UK. Graz and at KNAPP Systemintegration (KSI) Robot, goes into operation at in Leoben, Austria. the customer Basiq Dental in 2020 Who thinks of intralogistics, will think of KNAPP. A low complexity warehouse Oisterwijk, Holland. is implemented at the German Worldwide, 2,500 employees are now working for the company. The KNAPP Group leads the way in the full-service healthcare provider The annual turnover amounts to around EUR 384 million. The KNAPP-Store goes into intralogistics industry and achieves a total ProServ centring on the OSR turnover of EUR 700 million. Shuttle™. KNAPP makes the 63rd place among the Top 100 Ideal Employers 2014 and receives an award for being the most family-friendly Projects are implemented efficiently and to the company in . highest customer satisfaction. KNAPP leads the operation at Apologistics in way in the field of innovation and technology. Subsidiaries are founded in Australia and Russia. Markkleeberg, Germany.

Developed and refined to meet the requirements of the time, the YLOG Industry Solutions 40,000 ejectors sold on average each year are testament to the based in Dobl, Austria, importance and scope of the idea that Günter Knapp had many becomes a new decades before. member of the Group. KNAPP is the world market leader in shuttle technology with The YLOG-Shuttle 12 years of development and expertise. More than 200 OSR expands the existing Shuttle™ systems with more than 15,000 shuttles are active shuttle portfolio. worldwide. 2013 KNAPP establishes the Styrian Service Cluster Numerous innovations such as the Pick-it-Easy Robot, the together with other Styrian companies. Future KNAPP-Store and the easyUse control concept are introduced. customer-orientated, innovative services are the company's focus. The easyUse control concept is the default for all KNAPP user interfaces and facilitates simple, intuitive operation.

52 | KNAPP AG KNAPP AG | 53 Open spacesActivities and projects

For us, being an industry partner means understanding our customer’s requirements for both now and the future, and offering solutions in tune with the requirements.

Activities and projects Christian Grabner, CFO KNAPP AG

KNAPP AG | 55 Activities and projects “Flexibility and solution-oriented thinking are important requirements Open spaces when working in Field Engineering. Even so, the installation of the 4 5 KNAPP-Store at Apologistics was 1 a particularly exciting challenge. We had nothing to compare it with and no empirical values from other projects and a few special functions also had to be realized in order to 3 tailor the system to the customer’s 1 wishes. Meeting challenges like these successfully is very motivating, and I am really proud of our work.” Apologistics 1 Flexible: Scalable rack line 4 Intuitive and precise: Goods-in system work station; optionally with future technology KiSoft Vision Oliver Nemejc, 2 Durable and versatile: 2-arm Software Field Engineer, at KNAPP since 2006 gripper system can process a 5 Efficient: Reliable registration Successful with a wide range of articles of articles and automated goods- in process 3 Accurate: Buffer box places pioneering spirit articles on central belt 6 Safe and low-maintenance: Access plan and maintenance walkways Pioneering spirit and innovation are part of Apologistics' everyday business. As an online pharmacy, Apologistics works within a new, fast- growing area of the pharmaceutical supply chain – e-commerce. One glance at Apologistics' track record will offer proof of just how fast this segment

is growing. While some 50 orders were delivered 2 every day in the founding year 2004, the number of deliveries has sky-rocketed to 8,000 deliveries per day in 2013 – successful growth that went hand- in-hand with a process of gradual automation. Apologistics has trusted in KNAPP automation technology since 2006. As a future-oriented 4 5 2 company, Apologistics relies on innovative ideas and opted for the new KNAPP-Store in 2013.

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Sector: Advantages: Pharmaceutical low storage costs wholesale, high storage density low space requirements E-Commerce greater quality and efficiency Location: intuitive operation Markkleeberg, simple maintenance ROI within less than three years Leipzig, Germany Storage capacity: Storage: Key data 32,000 Multiple-deep articles per with glass Cooperation and trust as the key to Investing in the future KNAPP-Store Apologistics success The KNAPP-Store provides Apologistics shelves In order to use the available resources with a flexible solution for the automation of and cost margins efficiently in the current a wide range of articles on an individual item Pharmaceutical wholesale, economic climate, which is characterized by basis, and also offers the highest storage Consequently, the Sector E-Commerce increasing order volumes, a growing article density at low rack position costs. One KNAPP-Store fulfils all of 17m length range and high demands in terms of quality particular area which could be optimized was Apologistics’ requirements Location Markkleeberg, Leipzig, Germany and delivery time, it was important to further the costly and time-consuming processing of in terms of performance 2 Warehouse size 6,000 m expand the company’s automation processes slow-moving articles, which previously had to and storage density, and 2.5m width by implementing a KNAPP-Store. This proved be registered and picked manually. Returns significantly increases the incl. cental belt Deliveries per day Approx. 8,000 to be a key step in Apologistics’ success handling could also be processed more degree of automation and story. Within three months the project, which efficiently. The KNAPP-Store also made it efficiency of the warehouse height KNAPP-Store, comprised not only the KNAPP-Store itself possible to automatically process articles that in addition to lowering the central belt system with SDA and but a number of mechanical and software usually present challenges, such as cream jars, costs. In e-commerce, a 2.5m UPD ejectors, upgrades, had been integrated into the existing articles wrapped in cellophane, or articles with sector characterized by high manual picking stations, warehouse operations. The cooperation different expiry dates and lot numbers. Before volumes of small-quantity Article range: automatic carton erector and between Apologistics and KNAPP was very being placed in the KNAPP-Store, all articles orders, the advantages of the carton closer, automatic invoice positive. The project proceeded harmoniously are consistently registered, giving users an KNAPP-Store are especially Rectangular-shaped, insertion, weighing station, and was marked by mutual understanding and accurate overview and maximum transparency prominent when compared to automatic advert insertion, the shared goal of getting the first KNAPP-Store with regard to current stock levels and expiry manual picking; orders can cylindrical, Technologies photo station, KiSoft WCS up and running. KNAPP and Apologistics’ close dates, for example. The two-arm gripper be processed more quickly, cellophane-wrapped, collaboration and open dialogue culminated in system, which controls the automatic placing with less effort and virtually the successful integration of the KNAPP-Store and removal of articles from the Store, delivers error-free, which has a positive pack units into real-time operation on February 2, 2014 the highest level of availability, flexibility and effect on the end customer’s as scheduled. picking quality. satisfaction.

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Wanted: A flexible solution “Partnership and mutual respect, open Grene delivers to about 4,000 customers – © Grene about 2,000 parcels and 250 pallets leave the Deliveries per day: communication and the courage to strike new central warehouse in Skjern every day and are paths are highly valued within our company. delivered to Scandinavian customers. Online mail order already plays an important role for 2,000 parcels In KNAPP we have found a partner who shares distributors of agricultural and industrial spare and lives by these values. By realizing the parts. Reflecting this, about 90 percent of the orders for agricultural spare parts are online 250 pallets automation solution, we succeeded in creating orders at Grene. Grene opted for an automation a platform for future growth and success, which solution by KNAPP in order to achieve the highly-efficient warehouse processes needed to enables us to offer our customers even better © Grene handle the stock of about 100,000 articles and Articles in stock: services and an increased service quality.” 700,000 special articles, and to optimize the level of service and quality for their customers. Sean Ammentorp, Implementing a comprehensive software CEO Grene 100,000 solution was a central requirement for the solution. KiSoft WMS completely replaces the +700,000 existing warehouse management system. For the control, monitoring and optimization of all special articles the warehouse processes, KiSoft WCS is on the job. The project was realized in several phases to ensure undisturbed warehouse operations. A © Grene © Grene particular challenge was transferring data from Grene the existing system to the KiSoft WMS and the KiSoft WCS during on-going operations. In addition, the startup phase of the distribution Partnership for success centre was staged in the peak time of the season. Therefore, the DC had to be available immediately at a 100 percent. Grene, headquartered in Denmark, is the leading supplier of spare parts for the agricultural and industrial sectors. Grene

merged in 2013 with Kramp – together they are represented © Grene Technologies: ™ Sector in 22 countries worldwide and seen as the market leader. Warehouse size: OSR Shuttle Tools, Retail, Partnership and mutual respect are very important to Grene. Open Shuttle E-Commerce Partnership with customers, employees, suppliers and with 25,000 m² KiSoft WMS Location society is a central pillar in the company philosophy and an KiSoft WCS Skjern, Denmark important building block for success. Grene selected KNAPP as partner for modernizing the Skjern distribution centre. Sort & Pack

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Fast response “With this project we were able to give customers in Free-moving Detects humans and Scandinavia a perspective on the continuous further The Open Shuttles ensure structural or moving development in logistics infrastructure and, thus, on their OpenFacts intra-company transportShuttle objects, vehicles navigate competitive edge. In this sense, Grene is striking a new path and supply of the work based on contour; together with KNAPP. A special challenge was the integration Open Shuttle stations. intelligent route adaption. during on-going operation. Every day, Grene covered 100% of its deliveries, despite the substantial expansion. The cooperation with Grene was extremely open and cooperative, Flexible and making it possible to solve difficult phases in the project Integrable reliable quickly and satisfactorily.“ Easy integration without Error-free handling structural modifications. of complex transport Wolfgang Ferk orders; trays, containers, Head of Sales System Development & Consulting, cartons, pallets. at KNAPP since 2001

Scalable Innovation meets proven technology Low startup costs and Making the storage process simpler articles. The OSR Shuttle™ stands out overstock area. This system and further create a flexible transport network at Grene, and more efficient was a challenge. with its modular and scalable structure existing systems were integrated fully and transporting individual parts for further easily expanded shuttle Using KiSoft WMS, the goods are and can be expanded by further seamlessly into the new automation solution assembly (kitting) or transporting sample fleet. integrated into the system with only rack lines as necessary. The system in the course of the retrofitting process. models for staff members. In addition, they a few clicks and are then pushed features energy-efficient operation E-commerce orders typically have a high deliver the ordered goods to customers, who over to the take-away conveyor at – a rack line of the system requires variety of articles and low quantities with want to pick up their order directly at the the work stations which are now hardly more energy per hour than two fast delivery as the key to success. For this warehouse. all located directly by the conveyor fully-automatic coffee machines. For reason, special sort and pack stations are The automation solution combines a system. Thanks to this measure, the Grene, the OSR Shuttle™ guarantees available for processing the e-commerce technological mix of proven technologies work process became much easier, far maximum performance and flexibility orders efficiently. The articles for several and new, innovative solutions, allowing more efficient and ergonomic for the and using the shuttle system customer orders are picked together and Grene to expand their export areas, to staff members, saving valuable time significantly enhanced throughput and then distributed according to the individual make their internal warehouse processes and greatly reducing the travel paths in service quality. orders at the sort & pack stations where they more efficient and environment-friendly and the warehouse. A mini-load system with 7 stacker are packed and shipped. to minimize the strain on staff as well as to An OSR Shuttle™ with connected cranes, an existing system, ensures The innovative Open Shuttles are the offer their customers even better services ergonomic Pick-it-Easy work stations picking for the range of slow-moving absolute highlight of this solution. The and reduce delivery times. is available for picking the most popular articles and for the OSR Shuttle™ intelligent, autonomous transport systems

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“We decided on KNAPP “Being involved and contributing because for us, this was your own ideas to the development the most modern and and realization of such an practical solution, which still innovative solution as the Pick- involved an attractive level of it-Easy Robot is very motivating. investment. The collaboration It was particularly challenging with KNAPP far exceeded to bring the complex individual our expectations and the components together into a automation solution offers us finished product. As member of a a host of advantages both in very motivated team, I worked with day-to-day business and in the Pick-it-Easy Robot from the the long term. The workload prototype phase until it was finally Basiq Dental is better distributed and this ready to go into production. This has helped to significantly was quite a special experience. Innovation with bite reduce the time pressure. We Basiq Dental was, for us, the ideal were able to decrease staff partner with whom we could realize Basiq Dental, based in the Netherlands, supplies dentists working hours while at the the first Pick-it-Easy Robot. Basiq throughout Europe with its comprehensive range of high- same time improving quality. Dental is itself a very innovative quality dental equipment. As a customer-orientated company, All in all, the new automation company and wants to convey this Basiq Dental always strives to provide even better for its solution has increased our to its customers. This was optimally customers through innovative services, and is always one efficiency and strengthened achieved with the Pick-it-Easy step ahead of the competition. This is why outstanding our professional image.” Robot. The cooperation functioned customer service and superior quality are a priority for Basiq very well and by continuously Bart van Eijndhoven, Dental. In KNAPP, Basiq Dental has found a partner to support Owner, Basiq Dental consulting with one another, it was the company on its path to success with innovative and high- both flexible and transparent.” performance automation technology. In 2014, KNAPP equipped Bernhard Gütl, the Oisterwijk distribution centre with a combination of the Head of Mechatronics Development, tried-and-tested shuttle technology and the brand-new robot at KNAPP since 1997 technology.

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Pick-it-Easy Robot Flexibility as the key to success Scope of application: Ideal for areas with a demand for consistently high Growth is a clear objective for Basiq ServesFlexible one or several work stations Dental. In order to be adequately equipped quality and Performance over for future growth, scalability and flexibility Efficient a long period of time. Use in multi-shift were two of the main requirements for Consistently high performance operations, delicate items. the new storage and picking system. Reliable Advantages: Furthermore, the comprehensive and Low error rate, high delivery quality performance constantly growing product range needed to reliability be stored safely in a space-saving manner. Economic Short ROI quality Another requirement was to reduce staff zero defect warehouse costs and increase quality and efficiency. The Sector: modular OSR Shuttle™, which is scalable Pharmaceutical in size and function, offers Basiq Dental the desired flexibility and storage density. wholesale, dental supplies As the inventor of shuttle technology, and with more than 10 years of experience and Location: expertise, KNAPP offers the best of both Keeping a finger on the pulse of time worlds with the OSR Shuttle™ efficiency In the Oisterwijk distribution centre, manual and ergonomic manual working processes, thus Oisterwijk and flexibility combined with quality and and automatic processes blend together contributing to improved quality and efficient safety. Thanks to the innovative picking seamlessly: the dispatch cartons, available use of resources. Around 1,200 order lines robot Pick-it-Easy Robot, Basiq Dental is in two sizes, are channelled through the are processed per hour during peak periods. Deliveries per day: Warehouse size: breaking new ground in intralogistics and warehouse on the shortest path, depending One particular highlight of the solution is the is investing in a reliable, high-performance on the content of the order. For picking, newly-developed Pick-it-Easy Robot picking and economic picking system. three manual workspaces are available with robot, which is used for the first time at Basiq up to 13,000 paperless RF picking, as well as the ergonomic Dental. The picking robot is able to work over order lines and 1,485m² Pick-it-Easy work station for the OSR Shuttle™ a long period of time while still maintaining a Picking and packaging ares and the picking robot Pick-it-Easy Robot. Once consistently high throughput rate and a high the order is processed, the cartons are closed level of quality and, therefore, helps to reduce und 2,400 and sealed using a semi-automatic carton the staff costs despite growing order numbers 3,130m² sealer, and loaded directly onto the transport and to improve delivery quality. cartons pallet storage ares vehicles via two dispatch ramps. The collaboration between Basiq Dental and A key element of the Basiq Dental automation KNAPP was friendly and highly professional solution is the combination of the OSR throughout the entire course of the project. The Technologies: Shuttle™, Pick-it-Easy Health and the Pick-it- use of state-of-the art automation technology, ™ OSR Shuttle Easy Robot. The shuttle system is composed like the Pick-it-Easy Robot, immediately Pick-it-Easy Health of four aisles and due to the use of subdivided convinced Basiq Dental that, in KNAPP, they containers it offers the greatest possible storage had found the innovative and reliable partner Pick-it-Easy Robot density, with around 12,800 storage locations, the company had been looking for in order to KiSoft SRC thus meeting the requirement to make the best attain its objective. Further automation of the possible use of the available space. The special distribution centre in Oisterwijk is currently design of the Pick-it-Easy Health goods-to- being planned in collaboration with KNAPP. person work station enables efficient, error-free

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“The project proceeded from start to finish with the same contact people at KNAPP. The challenges were approached and mastered jointly on a partnership basis as the project proceeded. Thanks go to all the project participants for this tremendous success.“ Beat Erb, Facility Services, Herdern area, Cooperative Migros Zürich

“At the beginning, there were two companies, Migros the customer Migros and KNAPP the contractor. As the Irresistibly fresh project proceeded we became a team: Team Migros Taleg. The re- The Migros Cooperative is the largest Swiss retail alization was marked by open, fair company and about 60 percent of the yearly dialogue. In this way we were able turnover comes from grocery wholesale. The Migros to fulfil the technical and econo- Cooperative Zurich operates a total of 98 points of sale, mical demands to the satisfaction 32 specialty markets and 47 food service locations in of our customer. I hope to realize the Cantons Zurich, Glarus, St. Gallen and Schwyz, and more successful projects together is one of the most important employers in the region with this fantastic team. ” with 8,600 employees. Since Migros and KNAPP are connected by a long, successful partnership, Migros Alfred Vtic, Project Management, naturally trusted the KNAPP solution providers with at KNAPP since 2011 the modernization of the Zurich DC.

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Automated palletizing/ depalletizing and stacking/ Sector: Requirements and solutions unstacking Every day, the Zurich location handles Food Retail; 30,000 trading units such as the internal Migros fresh foods pool crates, folding containers or cartons with The key element of the solution is the fully- about 400 types of fruits and vegetables. automatic depalletizing/unstacking of the crates Central to the requirements was the economical in the goods-in area and the fully-automatic, Location: design of all processes from goods-in to goods- shop-friendly stacking/palletizing at goods-out. out and the improvement of the delivery quality Strenuous manual tasks in these areas are reduced, Zurich to the stores, for example by means of volume- and efficiency, quality and economic efficiency are optimized and store-friendly pallet building. sustainably increased. Other important aspects to be considered were Warehouse size: ergonomics, in order to prevent strenuous Quality improvement by building stacks manual work, as well as the hygienic and gentle like Rubic’s Cubes Goods-in: 2,000 m² handling of the fresh articles. The fresh goods are delivered in various Pallets are separated from the crates, the The innovative FAST Picking solution (Fully crates on pallets and are automatically crates are unstacked layer by layer and daily performance about Automated Standard Tray Picking) unites depalletized and unstacked in the goods-in placed on special trays for storage in the economy and quality with ergonomics and area. The automation of goods-in processes OSR Shuttle™. 30,000 space effectiveness and precisely correspond eliminates strenuous and unergonomic manual to the Migros requirements. The project was tasks – also reducing costs for the goods-in Goods-out: trading units realized without affecting the ongoing operation processes. Once automatically unstacked, the The goods are retrieved in the correct of the warehouse and the final acceptance took crates are stored on special trays in the OSR sequence. Criteria could be stability, Articles in stock: Daily delivery to: place in September 2013, one month ahead of Shuttle™. The shuttle system serves as a packing density and shop-friendly time. In the traditionally strong pre-Christmas storage buffer and allows fast access to all the organization of the goods. and Easter business periods, the FAST Picking goods. As soon as shop orders are on hand, points of solution has already impressively proved its a special software tool calculates the stack Building stacks: around 400 98 sale strengths. In the future, Migros would like to formation, like the solving of the Rubic’s Cube Four newly developed stacking machines different types offer their stores a 24 hour order rhythm by puzzle: Depending on the different criteria such form stacks on the pallets that look like food service using FAST Picking. as stability, packing density or shop layout, the Rubic’s Cubes. Different crates can be of fresh fruits 47 operations ideal arrangement of the crates on the pallets reliably and securely combined. and is calculated to ensure consistent high delivery vegetables quality. The crates are retrieved automatically by Performance Technologies: the OSR Shuttle™ in the correct sequence and • Depalletizing: 80 pallets/hour * KiSoft software solution conveyed to four stacking machines. The newly • Palletizing: 60 pallets/hour FAST Picking : developed stacking machines are redundantly • Crate unstacking: 2,000 trading units/hour KiSoft WCS designed ensuring maximum availability and • Crate stacking 1,800 trading units/hour 4 aisles OSR Shuttle™ KiSoft Command performance. They stack the crates on pallets in special machines for a calculated, shop-friendly pattern. This ensures KiSoft Transport that the more than 400 different types of fruits fully automatic stacking and vegetables that Migros delivers daily to and destacking of crates KiSoft SRC their point of sales and food service operations always arrive crisp and fresh for sale or for the soup pot.

* FAST Picking (Fully Automated Standard Tray Picking)

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“Our product-related core competence lies in the quality of our products, the perfect fit and also in our reliability, which includes reliable delivery. Our customers receive their goods the following day or within 48 hours of placing their order. The pocket sorting system provided by our long-term and trusted supplier Dürkopp is perfectly suited to our logistical needs. The system allows us to achieve high product turnover rates whilst ensuring high process reliability and enabling us to BRAX Setting trends for 125 years offer fast delivery times to our Founded in 1888, Leineweber GmbH & Co. KG celebrated customers.” The right pocket for every outfit its 125th anniversary last year. This company has long been synonymous with the highest quality products – and their efforts have not gone unnoticed. In the course of a study of the textile Thomas Dalsaß industry this year, BRAX ladies' trousers were awarded first place Managing Director, BRAX With 104 stores and around 1,500 shop-in-shops, Leineweber by purchasers from German retailers for women's outerwear. GmbH & Co. KG is one of the market leaders in premium casual BRAX has evolved rapidly since the 1990s. True to its slogan Feel good, BRAX now provides its customers with the perfect outfit from clothing with its labels BRAX, BRAX Golf, Raphaela by BRAX head to toe. Since 1998 Dürkopp Fördertechnik, which develops and Eurex by BRAX. Based in the German town of Herford, overhead conveyor technology for the textile industry, and Leineweber GmbH & Co. KG have been working together closely. this company has long placed its trust in the experience of Keeping up with the latest trends, being able to react quickly one of KNAPP's subsidiaries, Dürkopp Fördertechnik, for the to changing market requirements, being able to process ever- increasing goods flows whilst using resources efficiently and still storage and distribution of its premium materials. The existing delivering a top service - the demands of the textile sector are warehouse has recently been upgraded with the installation growing. In order to be able to respond to them in the best way possible, Leineweber GmbH & Co. KG decided to modernize their of an innovative pocket sorting system. distribution centre in Herford with a pocket sorting system.

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Sector: Right on track with the pocket sorter In the picking area for flat-packed goods, Fashion items were previously processed in accordance Location: with the person-to-goods principle. This meant Herford, Germany that employees had to cover great distances every day in order to retrieve the required floor space: stock from a total of 2,700 deep shelves. As the company's stock volume grew to around 2 6,000m² million items and their article range expanded, the need for extra space became pressing. During the modernization process, the aim Maximum Performance: Pick-it-Easy was not only to increase storage capacity the overhead conveyor and fitted with approx. 20,000 but at the same time to ensure that the RFID technology. This means every warehouse could be used in the most efficient item of clothing can be continuously items/day in single Pocket way possible. The optimization of the picking tracked and located at any time. Flat- shift operation process presented another challenge because packed goods are carefully placed Technologies: the picking performance was to be increased inside the sorter pockets, thus saving Pick-it-Easy with the same resources whilst still delivering space, until they are dispatched to Pocket Sorter System the same high delivery quality. fulfil a customer order. For picking, type 500/502 Pack The flexible pocket sorting system from the sorter pockets are called up from Dürkopp is now in place. Conveyors supply storage and directed towards the Pick- Scope of application: packaged flat-packed goods in cartons, such as it-Easy Pack work stations where they Ergonomic shirts or sweaters, from a high-bay warehouse are packed according to the order. By directly to BRAX the ergonomic Pick-it-Easy Pocket operating work stations in accordance loading and pack stations “Brax and Dürkopp have worked together for a number work stations. Employees then remove the with the 'goods-to-person' principle, perfect for flat-packed goods from the cartons and place them one- the picking process is made more of years, so when it came to the pocket sorter project, goods by-one into the sorter pockets – the goods are ergonomic, efficient and optimized with we were able to complete the installation as a well- automatically scanned during transfer. The respect to errors. At BRAX the loading e-Commerce and durable sorter pocket is permanently fixed to and pack stations that form part of the integrated team. This is partially due to the fact that the Pick-it-Easy line are located directly contact persons on both sides have remained the same shop modells alongside each other on the same level. This layout allows employees – we know each other, we understand one another and Advantages: Advantages: to change their position quickly and we work together to reach our goals. I look forward to High picking performance and merging of hanging and easily as and when needed, making picking quality flat good flows sure that resources are used flexibly. continuing our partnership with BRAX and to playing at the pack stations efficient The integration of the pocket sorting our part in helping them remain one of Europe's most picking process durable sorter pocket system has enabled BRAX to respond to the constant growth in volume of successful premium casual clothing brands.“ ergonomic handling gentle and goods and order peaks with the same space-saving Artikelhandling personnel numbers whilst providing Thomas Schnadwinkel, high employee acceptance customers with the same high-quality Sales Manager, von and reliable service. Dürkopp Fördertechnik

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“We aim to use the YLOG-Shuttle to initiate partnerships with small and medium-sized companies and to realize innovative, cost-efficient solutions. The YLOG-Shuttle has enabled MSG to optimize their use of valuable space while keeping production areas completely accessible. As the wheels can be rotated by 90°, the Shuttles are able to service each work station directly.“

Wolfgang Skrabitz Managing Director YLOG Industry Solutions

MSG Reaching new heights with the YLOG-Shuttle

Mechatronic Systems GmbH (MSG) develops and produces mechatronic components and systems, specializing in components and systems for the automotive sector. MSG's service package ranges from development to complete product series and the customer's individual needs are always the main focus. During the relocation of their production site to Wies, it was decided that the new location should also feature the latest automation technology and consequently MSG opted to use an YLOG-Shuttle system.

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Smart automation With wheels that can swivel up to 90 degrees, the YLOG-Shuttle is able to move outside the traditional pathways used in aisle- based article warehouses, thus paving the way for new possibilities in terms of flexible storage and goods transport within areas in close proximity to production. At MSG the YLOG-Shuttles transport various storage containers holding raw materials along track rails from goods-in to the rack systems within the ultra-clean production area. The containers are stored double-deep on six levels – a special lift system transports the YLOG- Shuttles to the required level. The work stations are connected to the shelf system – the YLOG- Shuttles automatically place half-finished products in a specific order so that they are ergonomically accessible, and place finished products back into the shelf system until they are required by the customer. The YLOG-Shuttle has also made it possible to allow for a number YLOG-Shuttle: of different curing times within the production Sector: Number of YLOG-Shuttles: process; intermediate storage on the floor and MSG2 Automotive industry; Thinking outside the box ... forklift truck operation within the production area components and systems, rack positions: and beyond are now no longer necessary . Flexible interim actuators and sensors Flexibility and quality storage of half-finished products means that 700 Ensuring flexibility and quality became various work stations with different cycle times Location: Scope of application: the core challenge the team faced at the can be connected efficiently. At present, two Wies, Austria on 6 Levels Perfect for small and medium-sized new production site. Production capacity and YLOG-Shuttles are in use at MSG; the shelving single-deep and double-deep companies in the industrial and produc- production quality needed to be improved and system offers up to 700 rack positions – the storage tion or distribution sector. the automated supply of the work stations with system's modular set-up means that it can be production material had to be ensured. Another adjusted at any time to improve performance or Performance: YLOG-Shuttle at a glance: challenge lay in ensuring the reliable buffering to create more space. • Flexible: Wheels swivel up to 90 of raw materials, half-finished products and degrees; offers different lift options complete products in addition to flexibly linking 30 double • Scalable: System is easy to ex- up individual work stations. By using the versatile cycles pand, optimal use of space YLOG-Shuttle, which can travel both freely and per hour • Economical: Cost-efficient; low in rack systems, the KNAPP subsidiary YLOG energy usage Industry Solutions was able to develop a flexible • High availability: Each shuttle can automation solution for MSG’s production site. work stations: 6 serve each rack position • Powerful: 30 double cycles per hour

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Founded: Core competencies:

2008 in Headquarters: Specializes Athens, Greece automated Airport logistics for luggage and goods, Cooperation with KNAPP since: 2009 Consulting, Service

Angelos Kiriakidis Kajetan Bergles Christos Doukas Range of services: Sales, planning, installation and Managing Director, Service Development Managing Director, service for customers in Greece, LAS Solutions at KNAPP since 2007 LAS Solutions customer service in Turkey and Israel, international service and installation Proximity as a key factor work, modernizations and upgrades, spare parts management, 24-hour In the fast-paced, competitive global by the innovative thinking and hotline, condition-based monitoring, economy there is increasing need for strong experience of LAS Solutions O&LS, training, maintenance & repair, partners who are close to the customer in all in the field of airport logistics, consulting. LAS Solutions geographical regions. Clear communication, where availability and the quick reaction times and a focus on individual ability to react quickly are Working together for success customer needs are other key factors for extremely important. a successful customer support. With LAS Listen – understand – Solutions, KNAPP has found a partner that implement: Other ingredients LAS Solutions (LASS), based in Athens, has been a partner of meets these requirements perfectly. LAS in KNAPP and LASS’s recipe Solutions is a sales partner for KNAPP in for success are openness, the KNAPP Group for more than 4 years now. The company, Greece and a service partner for Greece, communication and trans- which specializes in tailor-made solutions for airport logistics Turkey and Israel. LASS cooperates closely parency, because only those with KNAPP starting in the sales phase of who really listen can actually and consulting, is bucking the trend of the ongoing economic projects in order to recognize customer-specific understand needs and find downturn in Greece, whilst impressing with its expertise, requirements and to find the best solution to fit and implement the right the requirements, budget and future plans. solutions. With LASS as a professionalism and innovative services. Customers in In line with the KNAPP slogan making partner on location, customers Greece benefit from the proximity and quick reaction times complexity simple, LAS Solutions acts quickly, have a professional contact professionally and reliably on site and ensures who understands their needs, — in Greece, LASS supports KNAPP AG with sales, planning that KNAPP customers have a decisive speaks their language and is and the installation of intralogistics solutions, and also advantage on the market. The philosophy able to react quickly. shared by KNAPP and LAS Solutions focuses carries out customer service. Internationally, LAS Solutions is on customer satisfaction. In order to achieve available to customers of the KNAPP Group as a professional this, KNAPP offers a comprehensive range of services with the service portfolio System and flexible partner for all service matters. Support 360°+, which is ideally supplemented

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“Every customer is unique and Betterway Syfa Customer Service Networking Maintenance Tour & Trainings has specific needs." This is why Location Bangkok, Thailand Thessaloniki, Greece Athens, Greece throughout Europe we focus on the human factor in our work. We support, train Sector Retail, Lifestyle, Cosmetics Pharma various various Mission Increase performance through teamwork Fit for the future Talking to each other – learning from each Proactive maintenance for lasting high and motivate our customers so and optimum processes other performance that they can come to grips with their working environment in Service Operation & Logistics Support (O & LS) Retrofit Customer Service Networking Maintenance, training the best possible way, achieve Implemen- A new customer in a new market. The particular challenge in the case of the Communication, trust, transparency and Since 2012, LASS has been supporting tation Together with KNAPP, LAS Solutions pharmaceutical wholesaler Syfa was to continuous improvement are cornerstones the regular maintenance of numerous optimum performance with their took on the task of comprehensively carry out a comprehensive modernisation that form the basis of successful customer KNAPP systems in Turkey, Switzerland, training the customer's employees on in a 'living' system without disrupting day- service. Germany, Poland, Spain and Portugal, system and, at the end of the site and familiarizing them with the new to-day business. thus ensuring long-term availability, day, be confident that choosing intralogistics solution. With Customer Service Networking, investment security and consistently Detailed planning and excellent KNAPP launched a series of events high performance for KNAPP customers KNAPP was the right decision. Within two months, a group of individual communication between the project intended to bring customers together throughout Europe. Project success is very much employees became a strong and teams of Syfa, LAS Solutions and KNAPP to talk – the centre of this was mutual efficient team: Betterway delivers roughly ultimately produced the desired result. exchange and learning successful models LASS also carries out modernizations, dependent on successful and 1,000,000 items per day. Service and With cooperation, professionalism and from each other. The first Customer upgrades as well as targeted employee appreciative communication, so employee satisfaction were sustainably expertise, the distribution centre in Service Networking event was held in training and further training for KNAPP increased by using Operation & Logistics Thessaloniki was modernized and made 2010 by KNAPP in close cooperation with customers around the world. obviously cultural differences Support and thanks to the work of LAS fit for the future. LAS Solutions in Athens..

also need to be considered. Solutions. Best Practice LAS Solutions around the world the world LAS Solutions around This is why we place particular importance on clear and open communication in our daily work with our customers and with KNAPP.“ Reliable partner and capacity of the intralogistics Moving confidently into the future Angelos Kiriakidis, With this mixture of customer proximity, system. KNAPP will continue to work closely with LASS experience and local knowledge, LASS creates Around the world, LASS in the future. In spite of the beleaguered economic Managing Director, a reliable network for customers and supports supports KNAPP AG with situation in Greece, it is possible to see signs of LAS Solutions them in dealing with their new or updated service and maintenance improvement – there are new investments being system in order to ensure optimum system work and carries out ongoing made in the logistics sector. From a geographical benefits, top performance and the highest customer training in order to perspective, Greece has a unique position level of customer satisfaction. LAS Solutions ensure optimum use of new allowing it to act as a hub for Eastern European is also able to transfer its expertise from the technologies and processes and, countries, the Balkans and also the Middle East. airport logistics sector over to the intralogistics therefore, lasting success. LAS LAS Solutions is established as a local partner and sector – the company has special knowledge Solutions was chosen as KNAPP has been able to position itself internationally with of condition-based monitoring. In this case, a Service Representative of the a wide range of services, consulting and training. pre-emptive action plan is produced for each Year during the International Consequently, KNAPP is perfectly positioned for system component based on the current Customer Service Meetings supporting new and existing customers with a system status and historical data in order to 2014 for its exceptional work in sophisticated range of solutions in the future with reduce costs and maximize the useful life the service sector. LASS as its partner of choice.

82 | KNAPP AG KNAPP AG | 83 OpenActivities and projects spaces Open spacesActivities and projects In retrospect Highlights and Important Moments in the Fiscal Year 2013/14

June 2013 August 2013 Austrian Day of Logistics At the 20th Austrian Day of Logistics in the Design Center ECOPROFIT certified – again Linz (Austria), the KNAPP AG software experts present KNAPP AG has participated in the successful Ecoprofit program of SAP-based integration options for logistics solutions. the Environmental Office in Graz for many years now and is one of 45 ECOPROFIT companies in Graz. KNAPP takes comprehensive measures KNAPP as world champion of niche markets to conserve resources and reduce pollutants and again receives the April 2013 In recognition of its outstanding service to the Austrian ECOPROFIT certification for 2013. September 2013 KNAPP-Kinderwelt ground-breaking export economy, KNAPP AG receives the honour World 11th Logistics Summer in Leoben Balancing family and career – the champion of niche markets in the course of the Export Sustainability 3.0 is the theme of the 11th International Logistics new company daycare centre, KNAPP Day on June 20th, 2013. Summer held at the Montanuniversität Leoben. KNAPP addresses Kinderwelt, is a major contribution towards the topic of enhancing quality in intralogistics, introduces future enhancing the work-life balance of the GIRP – 54th Annual General Meeting technologies with KiSoft Vision and the zero defect warehouse employees at KNAPP AG. KNAPP participates in the Annual General Meeting and presents new paths and possibilities for future service with every year. In 2013, the event is staged in the Bulgarian the service concept System Support 360°+. capital Sofia. GIRP is the European Association of Pharmaceutical Full-line Wholesalers. AECOC members visit Migros and LeShop Spanish and Portuguese delegates of the AECOC association visit two KNAPP food/retail installations in Switzerland. The association is dedicated to enhancing sustainable value creation based on the optimized flow of goods and information. Touring the new Migros distribution centre in Zurich and the distribution centre of the online supermarket LeShop.ch is on the agenda. . July 2013 KNAPP climbs employer ranking In the course of the Students First Choice survey, university Innovation in food retail students vote KNAPP AG on the 13th place of the most popular In cooperation with a large supermarket chain, KNAPP Styrian employers. Students First Choice is a study on the career develops a new solution to enhance quality for picking concepts of university students. 7,614 individuals participated in May 2013 the survey and more than 1,000 companies were evaluated based orders on pallets. The solution ensures consistently on criteria such as image, career opportunities, popularity or Customer Service Networking reloaded high density and maximum article quality on the work-life balance. The 13th edition of KNAPP's Customer Service Networking pallet by using augmented reality technology and a Summer, sun, professional experience event series is staged at Voigt, a trusted KNAPP customer of specialized software for pack arrangement calculation. A total of 150 interns gather important work and career experience at the many years, in the vicinity of Zurich (Switzerland). Hart bei Graz and Leoben locations.

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November 2013 KNAPP wins major order from wehkamp.nl KNAPP AG wins a major order from e-commerce specialist wehkamp.nl for December 2013 automating its new distribution centre in A new member in the KNAPP Group the Netherlands. wehkamp.nl is the leading YLOG, specialist for smart and cost-efficient solutions, is October 2013 online portal for fashion, IT equipment, mobile now a separate company within KNAPP AG. YLOG Industry February2014 Opening ceremony for KNAPP-Kinderwelt phone accessories, furniture and domestic Solutions carries out its operations from the location in Award for family-friendly policies Just in time, before schools start at the beginning appliances. Some 200,000 articles will leave Dobl (Austria) and offers scalable system solutions for Building success together – at the beginning of February of September, the KNAPP Kinderwelt at the KNAPP the distribution centre every day after it will small and medium-sized businesses. The free-moving KNAPP receives the award for Friendliest Business headquarters in Hart bei Graz begins its services, go-live in 2015. verlassen. YLOG Shuttle System is especially suited for production for Women and Families in Styria 2013 in the category offering care and a lot of fun and adventure for 55 applications, assembling companies or for the fully- large-scale businesses. KNAPP offers its more than children. The board of directors at KNAPP celebrate the automatic supply of work stations and is the perfect 1,500 members of staff at the Hart bei Graz headquarters opening of KNAPP Kinderwelt in an official ceremony at addition to the existing shuttle portfolio of KNAPP AG. various programmes for health and well-being, for the beginning of October. example KNAPPvital, a comprehensive health and fitness programme, flexible working hours and job location models as well as the KNAPP Kinderwelt, the company daycare centre. January2014 Cooperation with the technical school HTL Villach Logistics rolls into the classrooms. In cooperation with KNAPP, the IT/data processing department of the technical Award for innovative services school in Villach (Austria) is expanding its educational The ÖVIA (Austrian technical/scientific association for program. Students of the 3rd year and higher benefit maintenance and plant management) awards KNAPP New subsidiary in Australia from the 2D/3D simulation software Enterprise Dynamics AG and JCL Fashion Logistics the prize for the most The KNAPP network is still growing. KNAPP provided by KNAPP. The software allows students to develop innovative services 2013. The jury is truly impressed Australia Pty. Ltd. starts operations in and fully programme algorithms for simulation models LogiMAT 2014 by the service package Lifecycle Management 360°+, November 2013. The KNAPP Group now has in practical applications. This software not only helps the By now, practically a tradition: tailored to JCL's requirements. With this service more than 33 subsidiaries and representative staff teach complex subject matters in a very fascinating KNAPP presents its exhibition stand at LogiMAT 2014, package, JCL can use the warehouse to its full potential offices worldwide in order to provide fast, and vivid manner but the practical teaching approach also this time together with the new corporate member YLOG and significantly increases warehouse availability, comprehensive and personal service to its allows the students to gain valuable hands-on experience Industry Solutions. YLOG introduces its autonomous shuttle performance and production. customers. for their future careers. as perfect addition to the KNAPP AG Shuttle portfolio.

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March 2014 3rd KNAPP Coding Contest Record Participation: 80 pupils, university Modex 2014 students and professionals from various KNAPP is exhibitor at the US-American supply chain provinces face the challenge of solving practical trade fair Modex in Georgia, Atlanta (USA), presenting programming tasks using their choice of Java or innovations and new products from the world of C# script. intralogistics.

Bernhard Rottenbuecher, Heimo Robosch, Managing Director Managing Director

After entering the company, At KNAPP since 2001 Bernhard Rottenbuecher headed After entering the the materials handling area, adding company in the Europe areas of production and design to his Northwest Sales Team, responsibilities in 2000. Since April Heimo Robosch became 2003 he has been the Managing Director the Head of Sales for of KNAPP Systemintegration GmbH Great Britain, Ireland and in Leoben. In October 2012 he was Scandinavia. In 2007 he Successful first year for Styrian Service Cluster appointed Executive Vice President in the was appointed head of the Ranking in the top 10 In March 2013 KNAPP founds the Styrian Service Cluster, together with management team of KNAPP AG. business area Integrated KNAPP AG hits the top ten. The company climbs up ANDRITZ, AVL List, Binder + Co and FH Campus 02, in order to exchange From October 2013 Bernhard has also Projects, and in 2012 the scale by 2 ranks going from rank 12 to rank 10 in know-how and experience on customer-oriented business models in been the Managing Director of the YLOG Executive Vice President the Modern Materials Handling Ranking of the top 20 customer service. By now the Styrian Service Cluster has 10 members Industry Solutions GmbH in Dobl. Sales. system suppliers. And some more good news: KNAPP and will have its first joint appearance at ServTec Austria, a forum records an increase by 23 percent and lands the highest renowned for its innovative services and new technologies. increase in turnover of all of the top 10 companies. .

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As a company, we ask ourselves the question: How can we create an environment in which our employees feel comfortable and enjoy working?

Generations and growth Generations Gerald Hofer, CEO KNAPP AG

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e e

Environmental controlling & key site figures kilometres vehicles, Since 2010, key figures relating to the noise, paper Key figures infrastructure Shouldering 33.374.476,00 environmental impact have been recorded and the Infrastructure in CO 2 ecological footprint of the company's headquarters recovered paper, carton, in Hart bei Graz has been calculated. The analysis residual waste, matured timber, Key figures wast plastic, residual wast includes the categories energy, air emissions and 7.323.707,60

Wast in CO2 waste as well as infrastructure and environmental management, and is carried out twice a year. For responsibility Key figures airemissions power fuel illustration purposes, the total amount of CO2 80.414.738,70 emitted has been converted into the number of Airemissions in CO2 trees required to neutralize this amount of CO KNAPP AG is attempting to use its comprehensive under- electricity 2 long-distance heating Key figures energy (see diagram). The key figures in this analysis gas standing of sustainability to strike a balance between 2.239.732.609,00 show that the major factor in the CO emission is Energy in CO 2 the interests of all its stakeholders. The different aspects 2 energy, whereas air emissions and waste make up a lower proportion. of sustainability can be compared to the view through a kaleidoscope – lots of small colourful pieces are reassembled Key figures infrastructure Key figures waste again and again to create new patterns. One of these aspects Key figures airemmissions involves handling generations and growth in a responsible Key figures energy

manner – a look through the KNAPP kaleidoscope reveals 3.41% 0.29% 1.41% 4.36% 0.26% 0.98% 4.30% 0.23% 1.15% 0.21% 0.39% 1.02% 94.89% 94.40% 94.31% 98.38%

a colourful spectrum when it comes to managing different Timeframe 10/11 11/12 12/13 Co 3,210.61t generations. Co2 2,360.85t Co2 3,211.38t Co2 3,211.01t 2 ee plantation Tr 11/ e plantation 12 Tre 12/ lantati antat 13 e p on 1 e pl ion 1 re 0/ re 0/ T 11 T 11 Certification & corporate environmental policy 236,030 321,138 321,101 KNAPP AG has an integrated management system and is certified 321,101 Trees Trees Trees in the areas of quality management (ISO 9001), occupational health and Trees safety (OHSAS 18001) and environmental management (ISO 14001). The company’s corporate environmental policy was derived from the company values reliability, courage, openness, appreciation and creativity, and is continually implemented in all areas of the company. The goal of sustainable intralogistics is the creation of environmentally 1,140 employees at 1,225 employees at 1,346 employees at 1,475 employees at sound, resource efficient and socially responsible logistics processes, Hart bei Graz location Hart bei Graz location Hart bei Graz location Hart bei Graz location as well as establishing a balance between economic and ecological Available surface: Available surface: Available surface: Available surface: Extentions of company site Extentions of company site efficiency in order to generate a sustainable going-concern value. 24,130 m2 36,189 m2 36,189 m2 40,214 m2

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In the waste category, most Fiscal Year 2013/14 of the values decreased further During the site expansion in the 2013/14 per employee. The values worth fiscal year, the total area of the company mentioning in this area being site was increased by around 10,000 m2 to waste paper (-12 percent), approximately 74,500 m2. As a result of new residual waste (-5 percent) and Developments and trends production areas and office spaces being plastic waste (-6 percent). 40–50 years The continuous growth of the company site and the built, along with other factors, the area to The result for the Hart bei Graz 30–40 years number of employees did result in a growth of the absolute be heated increased by around 5,000 m2, to site for the 2013/14 fiscal year is, 2 figures from the 2011/12 fiscal year onwards. However, approximately 39,000 m . Furthermore, the therefore, a total CO2 emission it is apparent that the extensive range of measures to number of employees at the site increased level of 3,210.61 metric tons, the 30–40 years 40–50 years 20–30 years conserve resources came into effect as of the 2012/13 by 132 compared to the year before, to a equivalent of 45 football pitches 20–30 years fiscal year and, despite company growth, the figures in the total of 1,478. and 321,061 trees. Despite the

categories considered continued to decrease consistently. The good news is that the positive considerable site expansion and > 20 years > 20 years + 50 years For example, the amount of power consumed per employee developments from the previous fiscal a further increase in the number + 50 years decreased by around 4 percent and fuel consumption per years are continuing. For example, the of employees, KNAPP AG was vehicle within the KNAPP vehicle fleet by 5.5 percent. There consumption of power and heating able to slightly improve its level of 272 female 1.254 male was a clear drop in the waste category, as every employee decreased by approximately 17 percent. CO2 emissions compared to the produced around 1/5 less residual waste. There was even a The vehicle fleet was expanded and now year before and achieves a small Number of employees 26 percent reduction in the proportion of hazardous waste, comprises 53 vehicles. Despite this, surplus of five trees on the virtual

which had already been low. A particularly positive result the vehicles covered around 200,000 tree plantation. The greatest CO2 Demographics was the reduction in factory waste from 700 kilograms to 65 kilometres less during the past fiscal year. factor at 98 percent is energy, Of the 1,478 employees at the Hart bei Graz kilograms. In total, the 2012/13 fiscal year, therefore, saw a This meant that the fuel consumption per whereas air emissions, waste site, 82.2 percent are men and 17.8 percent

CO2 emission level of 3,121.48 metric tons, the equivalent of car within the vehicle fleet decreased by and infrastructure account for are women. This shows that the proportion of 312,147 trees being required to neutralize this amount. With approximately 22 percent. The reduction just 2 percent. Going forward, the men working in the technical/industrial field an increasing number of employees and increasing order in the number of kilometres travelled is company aims to further reduce is still very high. In terms of age, the largest

volumes, the CO2 emissions in production could be reduced also a positive indicator that the measures its level of CO2 emissions, with proportion of employees is between 30 and 50 by approximately 1.6 metric tons so that there would be a relating to the organisation of business the main focus on energy, by years old. Within this age bracket, the number surplus of 164 trees on our virtual tree plantation. trips are being implemented successfully. introducing targeted measures of women is around 6 percent higher than the In addition, an increasing number of and increasing awareness. number of men amongst the 30 to 40-year- employees are using public transport, car olds, whilst it is the other way round for the 40 sharing, cycling or walking, with around 40 to 50-year-olds, as the number of men in this percent of the employees already selecting age group is around 5 percent higher than the factory waste: one of these options. It is apparent that over number of women. A relatively large proportion CO emissions - 635 kg the period under consideration, starting company site: of the workforce is aged between 20 and 30, 2 residual waste per employee: from the 2010/11 fiscal year, the proportion with the number of women outweighing the of car drivers has reduced by 20 percent. + 10.000 m² number of men here too, showing that an There was a considerable increase of increasing number of younger women is being - 1,6 t - 26 % around 15 percent in the amount of water drawn towards intralogistics. By taking specific energy consumption consumed. The main reasons for the higher production and office site measures such as participating in Girls’ Day, virtual tree plantation: per employee: water consumption are the large number KNAPP is attempting to get girls interested in surplus of 164 trees of orders and high workload levels in the + 5.000 m² pursuing a career in the field of intralogistics at - 4 % production area. a young age.

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What has your experience been like training at KNAPP?

Christoph Zorn: The training is very diverse; we get the chance to gain professional experience in many different departments. This means that Apprenticeships with every apprentice gets to find out where their own strengths and weaknesses lie. The weekly manual training with our trainers is very informative and interesting too; this training is always the perfect preparation for vocational college or, as in my future prospects case, for the final exam I am preparing for.

Well-trained specialized staff remains in short supply on the What aspects did you like in particular? domestic labour market. Excellent career and development What was most beneficial for you? opportunities, enjoying working with their hands and Why did you decide to do an apprenticeship and the apprenticeship Oliver Micheler: I found the three-and-a-half years successfully completing practical tasks, as well as varied with Higher Vocational Diploma – and why at KNAPP? of training very interesting and varied. One major plus for me was taking part in internal projects and practice-based training are factors which influence Christoph Zorn: I opted for the apprenticeship with Higher and being seconded abroad, where I was given many young people’s decision to opt for an apprenticeship. Vocational Diploma because I felt it offered the best of both the chance to put the knowledge I had acquired worlds. After the apprenticeship, I’ll have a good education to the test and pass on my specialist knowledge Since autumn 2008, young people across Austria have been and will be able to enter the world of work straight away, but to younger apprentices. The most beneficial thing able to gain their Higher Vocational Diploma alongside their I’ll also have my Higher Vocational Diploma, which will allow for me was being able to do the apprenticeship me to go on to university. Why KNAPP? KNAPP provides and also complete my Higher Vocational Diploma apprenticeship qualification. outstanding apprenticeships and has very committed trainers at the same time, which is important for my – they all make an effort to teach us apprentices as much future prospects. I also really liked how much our as possible. You also have superb chances of advancement training coordinator – Jörg Salicites invests in his KNAPP has offered a comprehensive and high-quality apprenticeship after an apprenticeship at KNAPP. apprentices and how he supports them. program for more than 20 years now, and is a federally recognized apprentice training company. There is a constant stream of about Oliver Micheler: I realized pretty early on that I wanted to 50 apprentices receiving training at any one time. After successful start my career with an apprenticeship. I was keen to stand completion of their apprenticeship, they have numerous interesting on my own feet from a young age and wanted to earn my development opportunities open to them within the company – two own money. Knowing that I would be able to acquire both thirds of the apprentices remain with KNAPP after their apprenticeship. theoretical and practical knowledge was a decisive factor Apprenticeship Oliver Micheler successfully completed both his mechatronic which made me realize that the apprenticeship was the right engineer apprenticeship and Higher Vocational Diploma at KNAPP in thing for me. By the time the work experience days were over 3 1/2 years 2011 and is now working as a shift manager in the shuttle production. at KNAPP, I knew for sure that the company was just right Christoph Zorn is in the 3rd year of his apprentice training to become for me. It was during this time that I got a first impression of + Higher Vocational a mechatronic engineer and is currently preparing for his final how well structured the company is and how much support Diploma apprenticeship examination and his Higher Vocational exams. We apprentices are given. KNAPP’s market-leading position was allows access to higher education e.g. invited them both to come and talk about their experiences and how they also a key factor for my decision – I realized that I would be university see their future prospects with the apprenticeships under their belts. learning from the best.

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Christoph Zorn Open spaces Mechatronics apprentice, 3rd year Open spaces of apprenticeship. At KNAPP since: September 2011

What opportunities and future prospects are there with an apprenticeship in a large company like KNAPP?

Christoph Zorn: I believe the opportunities are huge. We gain experience in a wide range of areas during our apprenticeship, so there is something for everyone. I can imagine it’s hard to get that kind of opportunity in smaller companies. There are also opportunities for professional advancement; it is down to the individual, of course, to work hard and take the initiative.

Oliver Micheler: There are plenty of opportunities and all doors are open after an apprenticeship at KNAPP. As I mentioned before, it is very important to me to be able to gain experience abroad and contribute to projects. Having earned a management position after completing my apprenticeship at KNAPP, I hope that I can show my younger colleagues who are still in training what is possible.

What interests and requirements are needed Would you ever opt for an apprenticeship again? for an apprenticeship at KNAPP? What advice What are your hopes for the future? would you give young people who are thinking about starting an apprenticeship? Christoph Zorn: I have no regrets about my decision to do an apprenticeship. The first thing I need to do is pass the final Oliver Micheler: The company values apprenticeship exam with distinction and pass my Higher – reliability, courage, openness, Vocational Diploma – I still have two subjects I need to pass. appreciation and creativity – are What the future will bring remains to be seen. I do hope indicators to any potential apprentice of that I’ll be at KNAPP for long time and be successful there. what the company is looking for. From my perspective, these have also turned out Oliver Micheler: If I could turn back time and had to decide to be the key to success. You also need again, I would certainly still opt for an apprenticeship at to be aware that you have to invest a lot KNAPP. I hope that I’ll be able to stay at KNAPP for a good of time in learning to be successful. The Oliver Micheler while yet to keep on building on my positive experiences and work experience days are one way of Shift manager of shuttle production learn even more. I also hope that apprenticeships remain as working out for yourself which profession Training: Mechatronics engineer important within the company in the future as they are now, is best for you apprenticeship and that many more extremely well-trained specialized staff At KNAPP since September 2007 emerges from the apprentice training program at KNAPP. Christoph Zorn: You really do need to be interested in technical things. As for requirements: You should be hard- working, have brains and be prepared to learn new things all the time

Thanks for talking to us and good luck for the future!

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„The Second Chance Project enabled Tapping the existing potential me to do what I've always been The Second Chance Project is interested in doing but unfortunately KNAPP's way of encouraging the talent and boosting the motivation of never had the opportunity to do, namely long-term experienced employees get a training in a metal-related and helping them to tap into their full The Second potential. The apprenticeships will profession ... result in a higher level of specialized professional qualification for the employees. In other words, KNAPP is counteracting the shortage of Chance specialized staff by encouraging and promoting the further training of its A safe pair of hands. They've worked hard for the company own employees. Especially when over many years and are eager to gain further training in new products are launched, it is the wealth of experience and specialist their field. 14 employees from manufacturing are getting knowledge of the employees that their second chance and the opportunity to prepare for and is invaluable to the company. Graduates from the Second Chance complete a mechanical engineering apprenticeship over usually go on to assume team leader roles and pass on their knowledge and experience to their team and to new employees. Further training for professionals The Second Chance Project was launched in the middle of September 2013 with the aim of enabling long-term, committed employees to complete apprenticeships. This training program was initiated and developed under the management of Jörg Salicites, Head of Apprenticeship Training at KNAPP, and the Economic Development Institute Styria (WIFI). Employees do not incur any expenses through the training. The 14 co-workers who … I found the training fascinating and infor- are gaining their apprenticeships later in life have many years of practical mative: the practical days we spent in other experience within mechanical engineering and the knowledge they have departments were very important; I now see amassed during this time makes them an important source of knowledge things from a different perspective. I'd like to for the company. With 450 theory modules, taught at the WIFI Graz keep this extra perspective and openness for institute, these employees are enhancing their practical knowledge with my work as a group leader and act accordin- theoretical content such as plan reading, area and volume calculations, gly.“ engineering fits and material science. The practical part of their training is conducted in-house alongside regular apprenticeships, as part of the everyday operations. Anton Radaschitz Group Leader Assembling At KNAPP since 1991 100 | KNAPP AG KNAPP AG | 101 OpenGenerations and growth spaces Open spacesGenerations and growth

People in man-machine communication enabling them to carry out processes intralogistics efficiently and cost-effectively. One thing is clear however. Without the clever use of automation technology, it would now no longer be possible to master Will machines be in charge in the future? the varied and demanding challenges of intralogistics. Surrounded by future technology new, exciting roles and attractive workplaces are being created The answer is no, of course. As KNAPP understands it, automation does not for people in the modern warehouse, such as the zero defect warehouse. mean that people need to be pushed out of processes. Rather, KNAPP believes This is an aspect which will also be increasingly important for companies in that its task is to support people with technologies and to provide attractive the future, in order to ensure long-term employee retention.

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„As an interface between user and programmer, I have an important intermediary role. I need to know the easyUse – Consistency creates trust user's precise needs and translate Intuitive man-machine communication – those hearing this term for the first time will perhaps think of these into an interface, which the people who control and communicate with machines programmers then implement in through the power of thought. Even if this is not the reality, the boundaries between man and machine are order to complete the software … becoming blurred thanks to the constantly advancing technological possibilities and developments. Designing ergonomic, intuitive user interfaces for intralogistics is also becoming increasingly important. On the one hand, our expectations are shaped by the daily interaction with electronic devices such as smartphones, and on the other hand easy operation is an essential requirement for efficient and satisfactory work. The task is to create an interface between man and machine that is not only easy and pleasant to use and, therefore, meeting the usability requirement, but that also ensures a positive user experience when dealing with the machine. With easyUse, KNAPP has created a clear operating concept ensuring a uniform appearance for all KiSoft products. Throughout the design of easyUse the guiding principle was making complexity simple, With easyUse, we have taken a large with a particular focus on reduction and consistency. The easyUse interfaces are clearly structured and and important step, namely designing deliberately free from unnecessary design elements. all interfaces of the KNAPP software Icons, layouts, visualisation and methods of interaction are simplified and harmonized throughout the entire portfolio so that they are consistent KiSoft product range. Large-scale visualisations and easy to use. Being involved with which show the current work step are at the heart of easyUse. This means that users are safely guided this work was a task that brought many through complex actions step by step and always have challenges and great responsibility, but quick and easy access to all the information they need for their work. An immediate sense of achievement it also motivated me and made me proud increases employee satisfaction and facilitates efficient to be involved. “ and error-optimized work.

Bernhard M. Sihler, Usability Engineer & Interface Design, at KNAPP since 2011

104 | KNAPP AG KNAPP AG | 105 OpenGenerations and growth spaces Open spacesGenerations and growth

“It is fascinating and motivating to be involved in turning innovative ideas into new products that make work easier for the user and processes more efficient – this is precisely what my work is about. For Vision Desk, we developed a completely new man-machine Vision Desk – More than just a table without manual intermediate steps, and the operating concept in a cross- Nowadays, when we buy an item, employee only needs to pack items that whether online or in a shop, we do no longer belong together or correct the order. Vision departmental development think in terms of its availability. Accustomed Desk provides a lasting increase in efficiency team. In addition to planning and to having everything available at all times, and quality and, therefore, also enhances the we are simply conforming to modern buying satisfaction of the end customer and reduces coordination, my main task in behaviour. Today, the key factors for making the costs for errors and returns. Thanks this project was to ensure that a purchase are more the services linked to to the state-of-the-art Vision technology, the purchased item, such as punctuality, the attractive workplace design helps the requirements from the user's traceability, quality and, of course, the costs. companies to achieve employee loyalty. side were incorporated into the With the zero defect warehouse for all the As a consequence, valuable specialist KiSoft Vision basic technology, KNAPP knowledge, which forms the basis for development of Vision Desk.” has developed a new approach in order to creativity and flexibility in processes remains combine precisely these requirements. One in the company. Christian Zink, member of the Vision family is Vision Desk. Application Manager, This completely new man-machine operating Business Center Vision, concept makes Vision Desk unique and at KNAPP since 2013 offers numerous possible applications, Pioneering – zero defect warehouse for example, in quality assurance or order Die Vision-Technologie bietet picking. flexible Vision technology offers flexible Vision Desk's camera system, image applications: throughout the zero recognition and image processing software defect warehouse KNAPP uses Vision recognize various items on a glass plate. technologies to improve quality and Different colours are, for example, projected efficiency in each process step from goods- onto the items or technically speaking, in to dispatch. Quality assurance measures augmented. These items might belong to built into the process mean that there is no different customer orders, and in this case need for final check areas, which saves one colour would correspond to one order. space and energy. In the zero defect Another possibility is to identify items which warehouse a self-learning organisation do not belong to an order and to mark them is established which sustainably reduces accordingly. This means that customer error costs and increases customer and orders or quality tests can be carried out employee satisfaction.

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Key data Time taken to build: April 2013–March 2014

New space: KNAPP AG: Headquarters in Hart bei Graz is growing 7,800 m² facility buidling; The expansion of the company headquarters in Hart bei 1,100 m² office building Graz is an important factor for economic and organizational growth and, therefore, also an important contribution for the long-term success of KNAPP AG. Besides creating the company daycare centre KNAPP Kinderwelt, the company also started the building and modification activities on the newly purchased property, which is directly adjacent to the KNAPP site. Approximately 7,800 m² of new facility buildings and 1,100 m² air-conditioned office space were created within the fiscal year 2013/14. By expanding the company site, KNAPP AG is able to significantly reduce the share of rented Elements for facilities in the Graz area. Employees who worked in these external locations, have now returned to the main company Constructional measures: site. This means that employees from various departments KNAPP Kinderwelt, moved to their new work stations after the expansion was new construction of a facility completed and can now enjoy an enhanced work environment. building, success With these modifications, the company has created modification and modernization a smooth flow of goods along the entire value chain, of the existing facility building, The KNAPP network is growing implementing the so-called pull production principle. Each work adaptation and modernization of the area is supplied with only those materials that were requested existing office building, connecting and that the staff can process immediately. Central picking road between existing and new areas In order to prepare the constantly-growing KNAPP enterprise for future is the core of this process that centrally stores and retrieves of the KNAPP site. all materials, making it possible to achieve a higher level of challenges, to enhance the collaboration with the subsidiaries and to productivity with significantly lower error costs and minimal provide the employees with a continuously stable work environment, transit times for orders. For the employees this change in processing considerably improves the work environment: the company launched the program KNAPP2020. The project Site2020 work steps are structured more clearly and are also simpler, is a key aspect of this comprehensive action program. The project and the work effort is minimized. This has also brought about a significant reduction of the traffic volume on the company focuses on the expansion and modification of the facilities and also location regarding internal and external transport, also lowering on strengthening the group headquarters as well as the subsidiary the level of noise and the emissions on site and maximizing pedestrian safety. These measures have not only changed companies and branch offices. In the past fiscal year, KNAPP AG has the site structurally, but also brought long-term improvements successfully realized numerous measures of the Site2020 project. along the entire supply chain.

108 | KNAPP AG KNAPP AG | 109 OpenGenerations and growth spaces Open spacesGenerations and growth “As the purchasing agent for Indirect Spend, I was responsible for the entire Key data purchasing procedure for the expansion time taken to build: October 2013–June 2014 of the site in Leoben, from furnishing the dispatch facility with racks to selecting New space: the design of the dishes for the new 2,090 m² facility building, restaurant. It was both an exciting and 700 m² company cafeteria challenging task, especially in the final stage – I was on site every day and witnessed the various steps first hand. Of course it was a very stressful time, but it KNAPP System Integration – Site in Leoben further strengthened was well worth the effort. The completed Cranes and building equipment for customer-specific projects. building has turned out marvellous and also played their part at the KNAPP With the modern cafeteria on System Integration (KSI) site this 700 m², the company has created a will definitely provide considerable fiscal year – measures for expanding perfect place to relax and enhance additional value for our site. I am very and modifying the facilities put a creativity for members of staff as Constructional measures: clear emphasis on strengthening the well as for customers and partners. happy that the company has put so much New construction of a facility location in Leoben and supporting The management has put special trust in me by giving me such a highly building, the planned course of growth. The emphasis on health and sustainability awning to protect dispatch from the company plans to increase the – the cafeteria offers fresh foods made responsible assignment, which is also a weather, number of employees from 320 to 500 exclusively from regional ingredients. connection to the inventory facility, big motivation in my daily work.” construction of a two-storey and also aims to achieve an increase In order to offer sufficient space for in turnover reaching a total of 100 the employees in the future, the cafeteria, Claudia Hochfellner 86 parking places for cars, bicycle million euros. Therefore, the KSI in new building was designed to allow racks, loading ramp, drainage Leoben has a very important position further expansion. As a consequence Purchasing, structures as employer and driving force for the the company can add up to three at KNAPP since 2006 economy in the Upper Styrian region. additional office floors to the building Within only eight months, the whenever this might be necessary. company created additional space The new building is highly energy- with a two-tier facility building and a efficient and environment-conscious company cafeteria, benefiting both and uses energy from ecological employees and customers. The KSI resources with a water heating invested 5.4 million euros in the site pump. In addition, the building in Leoben. has a modern cooling system that The newly created building com- uses the underground water. The plex with approximately 2,090 m² now outdoor space will provide additional offers additional space for storage and 86 parking spaces, bike racks, a dispatch – and also accommodates dispatch ramp as well as the required a test installation facility for testing percolation system to drain surface installations and special applications water.

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KNAPP worldwide 98 % export ratio KNAPP worldwide

33 subsidiaries and New subsidiaries in Russia and Australia represententative offices KNAPP operates worldwide with an export rate of 98 percent – the KNAPP Group network includes 33 subsidiaries and representative KNAPP in Russia: offices on every populated continent. Their job: providing fast, personal and comprehensive service to the customers. The newest subsidiaries OOO KNAPP – KNAPP Australia Pty. Ltd and OOO KNAPP – were founded in Sydney and Moscow. Prospekt Andropowa 18 In the past few years, KNAPP expanded its activities in Australia building 6 and Russia and won important new customers. In order to provide these customers with the best possible support on site, the foundation of subsidiaries was the next logical step and an important milestone in 115432 Moscow KNAPP’s growth. Moreover, it is an important statement about the trust Russia that KNAPP has for the future of these markets. YLOG Industry Solutions Kick-off for YLOG Industry Solutions in Dobl YIS YLOG Industry Solutions (YIS) has been part of the KNAPP Group Generations Location: since 2013 and complements the KNAPP product portfolio with their Dobl scalable shuttle solutions for small and medium-sized companies. YLOG Styria, Austria Industry Solutions operates from their company headquarters in Dobl, Styria. In the course of the last year, the company has moved into a under one roof Employees: production facility and an office building – this new company currently 25 has about 25 employees. The infrastructure and excellent connection to All in the family the road network were aspects in favour of the Dobl location, just a few Dürkopp Fördertechnik kilometres away from the KNAPP Group company headquarters in Hart bei Graz. This builds a solid platform for the future activities and success We meet the challenges of the demographic shift every day, whether we Location: of YLOG Industry Solutions. Bielefeld realize it or not. Companies such as KNAPP AG are faced with the task of Germany Dürkopp Fördertechnik in Bielefeld is growing finding a responsible way to support their employees when it comes to New office space: With an eye on planned growth, the Bielefeld location, headquarters balancing family and work and to respect the needs, desires and values of to the German Dürkopp Fördertechnik who are experts for intelligent the different generations. At KNAPP, people from different generations aged logistics solutions for the fashion sector, was expanded during the past 342 m² fiscal year. The company moved into an additional floor in the existing between 0 and 60+ come together under one roof on a daily basis. The building, gaining 342 m² of office space. The new office building provides numerous interfaces between the generations make for a vibrant company more space for creativity and offers sufficient space to accommodate the planned growth regarding the number of employees. culture and provide an opportunity for lifelong learning.

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Balancing career and family "Nee naw, nee naw, here comes the fire brigade" – the children from the "green" group at the KNAPP-Kinderwelt daycare centre chant and laugh as they Tanja Knapp make their way to their own dining hall. Psychotherapist, Supervisory Board Member KNAPP AG Today's menu is spaghetti bolognese, provided as usual by the factory cafeteria on the company site. Will any of the parents be able to guess what says: “I am, of course, fully dedicated reliable childcare: “I am really pleased their children had today? to being a mum. But my work in Global that by creating KNAPP-Kinderwelt we Procurement is also important to me and have been able to make life easier for I really enjoy it – my job is varied and our employees – this is something we Opened at the beginning of September requires me to take on responsibility. are always trying to do. Anyone who 2013, KNAPP-Kinderwelt provides around Without KNAPP-Kinderwelt, it would be has children themselves will know how 50 places for employees’ children. There is virtually impossible for me to continue to difficult it can be to manage the balancing a nursery group for children from the age of work in this way. My daughter, Johanna, act between work and good, flexible two months and two kindergarten groups feels comfortable at nursery and looks childcare. Nine years ago, I wanted to for children up to the age of six. This bright forward to new adventures every day. I place my one-year-old son in a nursery space with a feel-good atmosphere was built can rely fully on the WIKI carers, which in our residential area. Unfortunately, in just five months on a plot of land that is is a huge relief for me and allows me this was not possible as there were not approximately 2,000 m2 in size and situated to coordinate my career and private life enough places available. We managed next to the KNAPP AG site in Hart bei Graz, more efficiently.” to work it out in the end thanks to some Austria. Childcare professionals from WIKI In recognition of their efforts to help helpful family members and a lovely Kinderbetreuung provide flexible all-day care. their employees achieve a healthy work- childminder. But not everyone has such KNAPP-Kinderwelt makes it easier for parents life balance, KNAPP AG was named a good support system to fall back on. to return to work and organize their child care. friendliest business for women and In my job as a psychotherapist, I often Andrea Schögler is all too familiar with the families in the category large company encounter people who are under a lot challenge of balancing the different roles in in February 2013. Creating a company of stress and sometimes just knowing her life at home and at work. She is both little daycare centre was also an achievement that their child is being well looked after Johanna’s mum and well-established in her close to the Knapp family’s heart. Tanja close by would be a huge relief, both career as a production materials buyer. She Knapp knows what it means to have good, emotionally and practically.” Andrea Schögler and her daughter Johanna Buyer Material Management 114 | KNAPP AG Global Procurement, KNAPP AG | 115 at KNAPP since 1998 Generations and growth Generations and growth Christoph Haidic Apprenticeship Trainer Mechatro- Open spaces Open spacesnics; Apprenticeship Training, at KNAPP since 2005

Learning from each other, improving together

A change of scenery to the apprentice workshop where future mechatronics and mechanical engineers work side by side with colleagues and trainers. Once they have completed their training, they will be sought-after skilled workers with excellent career opportunities. KNAPP has been training apprentices for more than 20 years now, mainly in the fields of mechatronics and mechanical engineering but also in IT. There is a constant group of about 50 apprentices receiving training at any one time. As a state-accredited training company, KNAPP offers a varied and high-quality apprenticeship program, which has included Higher Vocational Diploma since 2008.

“I opted for the apprenticeship with a along with an interest in technology and Higher Vocational Diploma because I felt it technical aptitude, of course. We are looking offered the best of both worlds. Throughout our for team players. After all, our apprentices work Alois Haidic training, we are given the opportunity to learn in a range of departments and with various Pre-Assembling, from experienced colleagues and trainers. colleagues. All of our prospective apprentices KNAPP-on-Site, If you work hard and show some initiative, complete a taster week, during which we can at KNAPP since 2007 there will be plenty of opportunities for you assess how they would fit in.” in a company of this size once you have It is often during training that the different finished your training,” states Christoph Zorn, generations meet, sometimes even two who is in the 3rd year of his apprenticeship to generations of the same family. Christoph father, Alois, also values the mutual exchange training program which allows long-term become a mechatronics engineer. Besides the Haidic started his apprenticeship at KNAPP of knowledge and skills between colleagues: KNAPP employees to complete training in comprehensive specialist training, the program in 2005 and his father Alois Haidic also joined “I have a great deal of experience and a metal-related profession alongside their also focuses on promoting a sense of team the company in 2007. “The experiences of always complete my work in a diligent and work and, therefore, opens up new career spirit, creativity and problem-solving skills. the older generation are worth their weight in professional way. This approach is what helps opportunities to them. “I found the training It is no surprise that places on the company gold, whilst the younger generation looks at me cope with new tasks. My colleagues often fascinating and informative: the practical apprenticeship program are in high demand. some challenges from a different perspective. come to me for advice, knowing that I will days we spent in other departments were Christoph Haidic, who is now a trainer on the I think a good mix of the two is the recipe for always be happy to give them some pointers.” very important; I now see things from a program, was once an apprentice at KNAPP success. It is also really important to me that I The Second Chance is a unique project different perspective. I’d like to keep this extra himself. He explains what they look for when keep learning new things all the time and pass which is all about lifelong learning and perspective and openness for my work as a selecting a new intake of apprentices: “An on my knowledge to my apprentices to the appreciating the many years of practical group leader and act accordingly,” says Anton open mind and honesty are really important, best of my ability,” says Christoph Haidic. His experience gained by employees. It is a Radaschitz.

116 | KNAPP AG KNAPP AG | 117 Generations and growth Generations and growth Jusuf Buzimkic with his sons Bruno and Adrian Open spaces Head of Systems Engineering Open spaces General Retail Solutions, at KNAPP since 2007

and experts with the concept of specialist careers. Up a few stairs and in the neighbouring building, Jusuf Buzimkic is preparing to give a presentation to a customer. His job in project planning for the General Retail Solutions sector is challenging and varied but what he cannot do without is a positive atmosphere and enjoying his work: “It is vital to be highly creative as every project is different. We work hard and constructively to find the best solution, both within the company and with the customer. However, it is not just about working hard; it is very important to be able to have fun, too.” As KNAPP is an international company with customers from all over the world and an export rate of approximately 98 percent, flexibility and willingness to travel are basic requirements of many employees' job descriptions. Careful planning of business trips and the use of state- of-the-art video and web conferencing tools shall allow employees to provide optimum Enjoy work, achieve more customer service whilst relieving the strain on the laughs. The skilled machine fitter started employees and the environment. It is all the more off as a mechanic 37 years ago, when important for people who travel a lot to take the Prototype construction is one of the most interesting departments on the KNAPP KNAPP had just 15 employees. He then time to just take a deep breath and make the most moved into the production department of their time spent with their family. “My two sons site, as this is where new technologies and specialist solutions are built and tested. before being promoted to his current go to KNAPP-Kinderwelt,” says Jusuf Buzimkic. Employees who work here have many years’ worth of experience and specialist position in prototype production. His “It is perfect for me as it saves precious time. It colleagues value his experience, takes only a few steps to and from my office to knowledge, an analytical approach, creativity, problem solving skills and a fair his extensive specialist knowledge, take the children to nursery and pick them up amount of MacGyver in them. his good judgement and his friendly again. Both my family and the company benefit demeanour. KNAPP specifically focuses from this. I like to look out of my office window at on supporting specialist knowledge the nursery every now and then. Bruno and Adrian Toni Kienreich’s eyes light up as he talks sometimes you just have to trust your gut and sources of such knowledge. In are really excited when I tell them that I could see about his work in prototype production: “There feeling. This requires experience and sound addition to the wide range of options for them playing. On the way home, the first question is no danger of us ever being stuck in a rut instinct. My work comes easily to me and I vocational training and further education is always the same – did you have the same lunch – we are always dealing with new challenges. enjoy it. If this were not the case, I would hardly at the KNAPP Academy, KNAPP offers as us today?” Maybe today the answer will be yes However, I like to tinker and I know that have stayed with KNAPP for 37 years,” he an attractive career path for technicians – spaghetti bolognese!

118 | KNAPP AG KNAPP AG | 119 OpenGenerations and growth spaces Open spacesGenerations and growth 360°+

System Support 360°+. The goal is to put Generation our customers in a position where they are always able to provide their services to their own customers. Services are categorized according to their necessity for the operations and include: services to ensure the primary management technical operation, such as the hotline and spare parts; services that ensure long-term operational security and technical support, such as IT services, modernization or roadmaps; system service as well as operative for systems and technical support, such as training and Worldwide network integration Operation & Logistics Support. Combining the Listening, understanding, finding Shortened transit times, significantly reduced process services requires a fine touch, without which and realizing the right solution – important synergies for cost reduction and all done worldwide at the same costs, high process accuracy and reliability count as the increased operational reliability cannot be high level of standards. Thanks to most important reasons to decide to automate. In order achieved. Furthermore, the service network is its international customer service constantly gaining important data that answer KNAPP is provided with a stable to keep everything running like clockwork in the long run, key questions regarding the technical and platform for offering customers from coordinated care of the system is required throughout its life. economic areas, and that allow conclusions around the world a high-quality to be drawn about availability, performance, service. Starting with a uniform Our service for your success is the KNAPP motto for the high- usability and optimization potential. + strategy and the System Support performance service package System Support 360°+, which 360°+ portfolio, the services are 360° adapted to the local requirements, offers our customers a comprehensive portfolio tailored to markets and industries to ensure the specific needs of each customer. maximum usability to the customer. Successful customer service is measured in availability and a dense + Your advantages at a glance network of subsidiaries and service partners around the globe ensures Effective life cycle management Service Level Management this availability. Subsidiaries and Effective customer service at KNAPP begins already in the sales KNAPP Academy service partners remain in constant phase. Even at this early point, the requirements and goals pertaining to constructive dialogue with the service are coordinated with the customer in order to start the long-term Operation & Logistics Support Austrian headquarters in order to use care of the system as soon as the system begins its operation. Personal synergies, to exchange know-how contact and communication stand in the foreground and every customer Add-on Services and, therefore, to remain close to the has a personal contact person at Customer Service who is available and needs of the customer and to ensure ready to listen to all concerns. Modernizsation & Upgrades optimal care. The keys to long-term Do-it-yourself or full service – depending on what the customer success are motivation, team spirit can do individually or wants to have done, an ideal performance mix IT Services and enthusiasm for the work as well is put together from the comprehensive pool of services available in Plant Services as for interaction with the customers. Spare Parts Logistics 120 | KNAPP AG Hotline KNAPP AG | 121 OpenGenerations and growth spaces Open spacesGenerations and growth

Fine tuning the processes Even if an intralogistics system is optimally maintained and serviced it can only reach its full performance if the processes are perfectly tuned and if the operators are ideally trained in dealing with the system. With the innovative Operations & Logistics Support (O&LS), KNAPP offers one- of-a-kind consulting and steps into the role of an advisor in order to get the maximum performance from „We are bound to our customers by a every system. The idea is that ideal performance and availability are not long-term partnership. In a partnership, a question of the level of investment it is important that both partners achieve but the O&LS experts are on a quest to find hidden potentials. Logistical success. With our service, we ensure realities, warehouse processes and not only the long-term success of our demands are compiled and analysed and a tailor-made plan of measures parters, but also the advancement of our is created for the customer and jointly own company. With a strongly networked implemented. Even small changes can often have a great effect. No future without service international customer service, we increase Long-term observation indicates KNAPP is amongst the top 10 most such as augmented reality. Thanks to this head the satisfaction and personal commitment to an average increase in productivity innovative companies in Austria and innovation mounted display our perfectly trained service of 35 percent after 6 to 12 months. in service naturally plays a crucial part. While technicians are able to guide a technician on our partners, which extends beyond cultural Thus, KNAPP does not only ensure focusing on customer satisfaction, KNAPP any site around the globe and provide him and language barriers. the performance and value of a constantly strives to find new approaches in with the information to carry out the necessary system for its entire life span but also customer service and to develop innovative works promptly and they can also cushion I view each challenge as a mountain, and increases customer and employee service solutions. With the research project resource bottlenecks. use my creativity and intuition to reach the satisfaction. Assist 4.0, KNAPP concentrates on moulding KNAPP strives for service excellence – with the technical innovations of the 4th industrial this in mind, the Styrian Service Cluster was peak. The satisfaction of having achieved revolution, which is centred on the network founded in cooperation with other companies something gives me the energy for the next of man and machine, into future-oriented from various industries. Benchmarking, the services. Dynamics, mobility, communication exchange of knowledge that extends beyond day, and for the next peak.“ and flexibility are the important factors which the borders of ones own branch and striving always centre on the person. With the service for constant improvement are in the focus support system KiSoft Web Eye, a head – because if one does not strive to become Michael Lemut mounted display has been already realized better, one has already ceased to be good. Account Manager Customer Service Global Accounts, that can be equipped with other technologies, at KNAPP since 2001

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In the European markets important for KNAPP AG: Germany UK France Scandinavia Benelux an increase in gross domestic  2% USA Economic environment  8% China After two difficult years, influenced by the financial crisis and and the corresponding negative growth rates in the eurozone, the last quarters in 2013 showed the first promising signs of recovery and a steady upward economic trend. The economic data for the first quarter in 2014 also confirmed that Europe is emerging from the recession. In the European markets important for KNAPP AG, Germany, UK, France, Benelux and Scandinavia succeeded in achieving, in part, even considerable economic growth, while Spain and Italy still remained in the recession, though there are reassuring signs that these countries have left the worst of the economic downturn behind them as well. Even most of the CEE countries that were especially affected by the crisis are also recording an increase in economic output. And likewise, the economy in Latin and South America, which is a very important market area for KNAPP AG, also showed clear signs of recovery. The economic upswing in the USA, with an increase in gross domestic product of almost 2 percent has turned out clearly higher than in the eurozone, though below the value in 2012 (+2.2 percent) due to a consolidated domestic budget. The Asian-Pacific economic region, an important future market for the KNAPP Group, has shown a very positive development, with China – just as in the previous years – recording a GDP record of almost 8

Facts and figures percent.

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In the Solutions business Sales by sector segment, KNAPP AG increased its turnover by almost 14 percent Turnover compared to the previous year, with Others The KNAPP Group, as planned, was able the segments Pharma, Tools and 7% to consolidate its turnover, which was already Office Supply featuring an above- Tools on a very high level in the past year, achieving turnover for the year in review solely through average growth. 13% a turnover of 384 million euros with an increase organic growth. The Integrated Projects segment Pharma in turnover by 1.1 percent compared to the With a share of turnover of more than 70 showed a slight decline in sales, 34% previous year. The company realized this percent, the economic region Western Europe going back to a somewhat lower Food/Retail was again the strongest sales region, with a turnover in the Fashion business 16% marginal decline due to the slightly lower sales sector due to a slight delay in the figures in Spain and Italy compared to the placement of orders. On the other Fashion previous year. The turnover rates in Germany, hand, Food Retail and General Cosmetics 24% Country Turnover in euros Percentage UK and France remained on a very high level. Retail as part of this business 6% Western Europe 256,975,077 67.0% The sales figures of the CEE states slowly segment, enjoyed another increase Eastern Europe 15,820,054 4.1% recovering from the recession tripled in the in turnover in the past fiscal year. North America 57,382,108 15.0% past fiscal year, turnover increased from The KNAPP Group has South America 42,462,827 11.1% approx. 5 million euros to more than 15 million concentrated consistently on the 2013/14 Turnover in euros Percentage Others 11,111,615 2.9% euros. And the outlook for the coming year is Customer Service business area to Pharma 130,648,394 34% very promising. increase customer satisfaction and Fashion 92,574,080 24% The turnover in the North American region customer loyalty. The strategy has Cosmetics 22,021,289 6% Sales by geographical region sailed to a record high of more than 57 million again proven successful, increasing Food/Retail 62,107,689 16% euros, due to increased turnover rates in the share of turnover to 22 percent Tools 48,662,022 13% Others Canada. With a share of turnover of almost of the total revenue (previous year: Others 27,738,207 7%

2,9% 1/6, this economic region is very important for 19 percent). KNAPP AG. With an order intake of 100 million South America dollars, KNAPP AG landed the highest-ever 11,1% order intake for this region since the company was founded. Revenue by business segments The Latin American economic region was 2013/14 Turnover in euros Percentage North America the driving force for growth for the KNAPP Solutions 149,023,405 38.83% 15,0% Group, the share of turnover increased from 8 Integrated Projects 150,075,531 39.11% percent in the previous year to more than 10 Customer Service 84,652,745 22.06% Eastern Europe Western Europe percent. Especially improved turnover figures 4,1% 67,0% in Mexico contributed significantly to this higher turnover. Customer Service The Asian-Pacific market area is becoming Solution 22,06% more and more important for KNAPP AG in the 38,83% future, with the turnover remaining stable on the previous year's level of approx. 11 million Integrated Projects euros. The company expects an increase in 39,11% turnover for the coming year.

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Order intake “In controlling, it is very important to have a comprehensive overview + 15% result and to be able to make the cross past fiscal year increased connections between various 454 million euros +< 15% business matters. At the same time Order status  11.1 million euros we deal intensively with detailed 330 million euros requests from all areas so that we can best provide support for their daily work. We work with the entire company, continually handle new and exciting topics and can, therefore, make a contribution to meeting, if not Auftragseingang und Auftragsstand Assets, liabilities and financial position The order intake of the past fiscal year The balance of the KNAPP Group by exceeding, the company goals. increased by approx. 15 percent compared March 31, 2014 featured an unchanged solid I enjoy challenges, especially the to the prior year, reaching a record peak of capital structure. The balance sheet total of almost 454 million euro in volume. This also 256 million euros corresponds approximately feeling of satisfaction that comes with involved an increase in order balance by 65 to the balance in the previous year. success! For new topics, I proceed in million euros to a total of 330 million euros, and The equity grew from 53.7 million euros for the most part, the company has already to 60.3 million euros in the year in review, the an organized manner and create an succeeded in assuring the budgeted turnover equity ratio of 23.5 percent was above the ratio overview of content and time frame. for the coming fiscal year. of the prior year (22.9 percent). The return on equity at 23.6 percent remained fairly stable I can always rely on my team and my compared to the previous year and the return colleagues from other departments Result on assets also remained at 5.6 percent, the For the KNAPP Group, the past year has same level of the previous year. and together we always find a good been the most successful year in the entire solution, even for difficult tasks.” history of the company. The company enjoyed an increase in Cash flow earnings before interest and taxes (EBIT) by The investments of more than 18 million Bianca Strini 5.2 percent to 15.4 million euros in fiscal year euros, of which a large portion went into Controlling KAG, at KNAPP since 2008 2013-14, with earnings before taxes (EBT) expanding the business site, were financed increasing by approx. 1 million euros to a total from the current cash flow: on March 31, 2014, of 14.2 million euros, which corresponds to an cash amounted to approx. 42 million euros EBT margin of 3.7 percent (previous year: 3.5 (previous year: 30 million euros). percent). The result after taxes has increased by more than 15 percent to 11.1 million euros.

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Risk management The KNAPP Group has established an internal controlling system worldwide that identifies potential risks at an early stage and quickly initiates countermeasures as required by the corresponding risk assessment. Because of its international activities, the Group is exposed to a number of financial risks, especially foreign currency risks. These risks are minimized through the use of derivative financial instruments such as foreign exchange transactions and swaps. Project risks, especially for large-scale orders, are analysed and evaluated through corresponding risk assessment procedures. Securing adequate liquidity is the KNAPP Group's top priority, and in this respect, the company is in an outstanding position and has high liquidity reserves. Any cash flow risks are Research and development monitored by the centrally-managed Cashflow KNAPP AG as solution provider is a For the year in review, the emphasis was on: Reports. recognized specialist for all-in-one intralogistics solutions. • Development of software • Innovations in the Open Shuttle In the past year, new, highly-integrated algorithms for the homogeneous technology (free-moving shuttles) system solutions were realized in a variety of combination of sales channels • Further development of new strategic target sectors – for picking various • Development of new control technologies and system product types for orders from different business strategies for applications with solutions in manual and models. These sectors include, for example, the all-in shuttle system automatic picking based on deliveries to wholesalers, branch stores or • Expansion of the distribution imaging technology (KiSoft deliveries directly to the end consumer. software based on the Vision) This year KNAPP invested more than emphasized sectors • Further development of the new 7 percent of its turnover (previous year: 6 • Comprehensive expansion of ergonomically designed picking percent) – or 27.7 million euros – in research functions in shuttle technology, work stations and development. especially in the rail-guided • Developments in robot picking Due to increasing demands on system version (Pick-it-Easy Robot) design as well as demands from the market, • Further development of • Further development of the zero- the goal of all of the development activities was components of the new, even defect technology bundle to secure the competitive advantage, and with higher-performance container this, securing long-term organic growth. conveyor system Streamline In the research and development areas of the KNAPP Group, more than 400 people have With these developments, KNAPP continued to pursue its goal of been working on new and further developments strengthening and further expanding its technological lead. in the past fiscal year.

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Consolidated financial statements* Consolidated income statement Personnel Outlook On the reporting date March 31, 2014, the KNAPP AG expects a satisfactory level 2013/14 2012/13 KNAPP Group had a total of 2,444 employees of investment in the strategic target sectors (in EUR) (in TEUR) worldwide (previous year 2,256), with more for fiscal year 2014/15 in order to realize the than 1,800 employees in Austria. This all- planned growth of 12 percent to 430 million Revenue 383,751,680 379,499 time record high resulted from the growth and euros turnover for the coming fiscal year. Other own work capitalised 2,530,000 1,938 the required higher level of staff to process New demands on multichannel Other operating income 7,736,666 3,890 upcoming projects due to the high order warehouses, new work place regulations Cost of materials and purchased services (160,359,326) (171,987) balance. The large number of academics and and new quality requirements will continue to Staff costs (150,384,905) (137,120) graduates of specialized schools or colleges be the key factors for new, replacement and Scheduled depreciation and amortisation (7,998,135) (7,715) among the KNAPP staff clearly shows the expansion investments. Other operating expenses (59,845,986) (53,425) high qualification of the team: approximately The further systematic expansion of 45 percent of all employees have a university the product and system solution portfolios, Operating profit 15,429,994 15,080 or college degree or a specialized school above all in the shuttle technologies, image diploma. recognition systems, autopickers, conveyor Finance income 735,627 576 systems and robot systems as well as existing Finance costs (1,927,540) (1,897) references from successfully installed projects, will open new opportunities for sales with Finance costs - net (1,191,913) (1,321) existing and potential new customers. In the coming year, KNAPP will also invest Profit before tax 14,238,081 13,759 substantial resources in new and further development in order to maintain its position of Income tax expense (3,128,373) (3,798) technological leadership. In the strategic markets and the markets Profit for the year 11,109,708 9,961 especially relevant for turnover, such as Central and Northern Europe, but also in the USA and Attributable to: Latin America, forecasts predict an increase in Owners of the parent 11,082,327 9,984 growth. KNAPP also expects further growth in Non-controlIing interests 27,381 (23) the Asian-Pacific economic region, including an upward trend for the previously somewhat sluggish markets in Spain and Italy.

*) These consolidated financial statements of KNAPP AG as at 31 March 2014 are an abbreviated version.

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Consolidated statement of comprehensive income Consolidated statement of changes in equity (all amounts in EUR) Attributable to 2013/14 2012/13 owners of the parent Adjustment Retained Revaluation Non- Share Fair value item for Total (in EUR) (in TEUR) earnings and reserve controlling capital reserve currency equity other reserves IAS 19 interests translation Profit for the year 11,109,708 9,961 Balance 1 April 2012 5,000,000 41,791,520 (1,352,073) 0 706,749 1,874,399 48,020,595 Items subsequently not reclassified to the income statement

Revaluation of post-employment benefit obligations (505,067) (415) Profit for the year 0 9,984,379 0 0 0 (23,273) 9,961,106 Other comprehensive Deferred taxes from the revaluation of post-employment benefit obligations 159,134 104 income for the year 0 0 (343,151) (311,071) 246,305 0 (407.917) (345,933) (311) Total comprehensive income 0 9,984,379 (343,151) (311,071) 246,305 (23,273) 9,553,189 Items subsequently reclassified to the income statement Purchase/sale of non- controlling interests 0 1,228,425 0 0 0 (1,064,945) 163,480 Fair value measurement of available-for-sale financial assets and derivative financial instruments (gross) 303,860 (457) Dividends paid 0 (4,000,000) 0 0 0 0 (4,000,000) Total contributions Deferred taxes from the fair value measurement of available-for-sale financial by and distributions to owners of the assets and derivative financial instruments (75,965) 114 parent, recognised directly in equity 0 (2,771,575) 0 0 0 (1.064.945) (3,836,520) Currency translation difference (472,547) 246 (244,652) (97) Balance 31 March 2013 5,000,000 49,004,324 (1,695,224) (311,071) 953,054 786,181 53,737,264 Other comprehensive income for the year (590,585) (408) Profit for the year 0 11.082.327 0 0 0 27,381 11,109,708 Other comprehensive Total comprehensive income for the year 10,519,123 9,553 income for the year 0 0 227,895 (345,933) (472,547) 0 (590,585) Attributable to: Total comprehensive Owners of the parent 10,491,742 9,576 income 0 11,082,327 227,895 (345,933) (472,547) 27,381 10,519,123 Non-controlIing interests 27,381 (23) Changes in consolidation scope 0 0 0 0 0 660 660 Dividends paid 0 (4,000,000) 0 0 0 0 (4,000,000) Total contributions by and distributions to owners of the parent, recognised directly in equity 0 (4,000,000) 0 0 0 660 (3,999,340)

Balance 31 March 2014 5,000,000 56,086,651 (1,467,329) (657,004) 480,507 814,222 60,257,047

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Consolidated statement of financial position Consolidated statement of financial position

March 31, 2014 March 31, 2013 March 31, 2014 March 31, 2013 (in EUR) (in TEUR) (in EUR) (in TEUR) ASSETS EQUITY AND LIABILITIES

Non-current assets Equity Property, plant and equipment 48,354,896 38,946 Capital and reserves attributable to owners of the parent Intangible assets 22,393,023 20,986 Share capital 5,000,000 5,000 Available-for-sale financial assets 363,364 366 Retained earnings, and other reserves 56,086,651 49,004 Deferred tax assets 3,333,440 3,135 Fair value reserve (1,467,329) (1,695) Total non-current assets 74,444,723 63,433 Revaluation reserve IAS 19 (657,004) (311) Adjustment item for currencv translation 480,507 953 Total equity before non-controlling interests 59.442,825 52,951 Current assets Inventories 17,851,204 18,074 Non-controlling interests 814,222 786 Receivables from deliveries and services 78,484,226 75,121 Total equity 60,257,047 53,737 Amount due from customers on construction contracts 19,636,550 31,029 Other current receivables and assets 20,992,907 14,629 LIABILITIES Available-for-sale financial assets 2,486,857 2,735 Non-current liabilities Derivative financial instruments 134,977 42 Non-current financial liabilities 17,932,254 19,700 Cash and cash equivalents 41,874,667 29,926 Profit participation rights 3,188,269 2,488 Total current assets 181,461,388 171,556 Post-employment benefit obligations 6,911,500 6,289 Other non-current liabilities 1,400,180 1,200 Total assets 255,906,111 234,989 Derivative financial instruments 2,171,703 2,593 Deferred tax liabilities 8,600,239 7,981 Total non-current liabilities 40,204,145 40,251

Current liabilities Trade payables 24,292,579 25,821 Current tax liabilities 859,489 2,505 Current financial liabilities 2,726,936 3,928 Derivative financial instruments 78,570 1,929 Current provisions 7,846,730 8,232 Amount due to customers on construction contracts 73,016,567 58,808 Accrued liabilities 46,624,048 39,778 Total current liabilities 155,444,919 141,001 Total liabilities 195,649,064 181,252

Total equity and liabilities 255,906,111 234,989

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Consolidated statement of cash flow Consolidated statement of cash flow

2013/14 2012/13 2013/14 2012/13 (in EUR) (in TEUR) (in EUR) (in TEUR) Cash flow from investing activities Cash flow from operating activities Purchases of property, plant and equipment (13,969,767) (9,898) Profit before tax 14,238,081 13,759 Purchases of intangible assets (5,154,100) (2,794) Purchases of available-for-sale financial assets 0 (3) Adjustments for non-cash items Proceeds from the sale of property, plant and and other reconciliations equipment and intangible assets 268,131 35 Financial result 1,191,913 1,321 Proceeds from the sale of available-for-sale financial assets 243,575 0 Depreciation and amortisation 7,998,135 7,715 Gains/losses from the disposal of non-current assets (160,618) (1) Net cash used in investinq activities (18,612,161) (12.660) Increase or decrease in post-employment benefit obligations 117,044 333 Change in other non-current liabilities and provisions 200,230 1,200 Cash flow from financing activities Adjustments for non-cash items Dividends paid (4,000,000) (4,000) and other reconciliations 9,346,704 10,568 Increase in profit participation rights issued 919,324 886 Decrease in profit participation rights issued (218,869) (225) Changes in net current assets Proceeds from non-current borrowings 6,500,000 2,400 Increase/decrease in trade receivables and other assets (480,956) (31,600) Repayments of non-current borrowings (8,267,746) (900) Increase/decrease in inventories 223,159 (1,134) Proceeds from current borrowings 0 1,576 Increase/decrease in trade payables and Repayments of current borrowings (1,201,168) 0 other current liabilities 19,526,322 18,127 Proceeds from the sale of non-controlling interests 0 14 Increase/decrease in current provisions (384,804) 2,229 Purchases of non-controlling interests 0 (3,500) Changes in net current assets 18,883,721 (12,378)

Cash flow from operating activities 42,468,506 11,949 Net cash used in financing activities (6,268,459) (3,749)

Interest received 735,627 576 Net decrease/increase in cash and cash equivalents 12,218,826 (6,892) Interest paid (1,833,861) (1,673) Income tax paid - net (4,270,826) (1,335) Change in cash and cash equivalents (5,369,060) (2,432) Cash and cash equivalents at beginning of year 29,926,233 36,695 Net decrease/increase in cash and cash equivalents 12,218,826 (6,892) Net cash generated from operating activities 37,099,446 9,517 Exchange gains/losses on cash and cash equivalents (270,392) 123

Cash and cash equivalents at end of year 41,874,667 29,926

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