Sustainable management: comprehensive responsibility

1. Sustainable management:comprehensive responsibility Hans Ruedi Schweizer Manager INEM General Members’ Conference and Members Meeting 2009, Hamburg, November 24th Ernst Schweizer AG, Metallbau

2. The basics of sustainability Sustainability of businesses Sustainability of national economies Market performance Economical Social Ecological Social performance Ecological performance Financial performance Ernst Schweizer AG, Metallbau

3. Sustainability of businesses Customers, partner companies Market services Environmental services Social services Employees, Suppliers, Partner companies, Society Environment / living space Financial services Business and capital provider Ernst Schweizer AG, Metallbau

4. Sustainability as concept:the four Schweizer success points (SEP). Customer oriented services Reliability and innovation characterise the services for our customers. Employees and society We work together fairly and responsibly – within the company and with our partners. Environment We take care of the environment – with all products and in the entire company. Profitability Efficiency and profitability ensure our competitiveness and further development. Ernst Schweizer AG, Metallbau

5. Building for man and the environment Facades Wood/metal systems Windows and doors Consultancy and Service Letterboxes and finished parts Solar energy systems Ernst Schweizer AG, Metallbau

6. Customer orientation: Reliability and innovation characterise the services for our customers • Reliability means that our customers can rely on the deadlines and quality of our services. • Under innovation we mean that we quickly recognise opportunities and requirements in the market and implement these in innovative and aesthetic solutions for a wide range of customers. • We contract effective partnerships in terms of development, production and sales. Ernst Schweizer AG, Metallbau

7. Customer orientationWood/metal systems: Sliding door development • Development and production of metal frames and system components for more than 150 window factories in Switzerland and Europe • Ecological through the use of materials: CO2-neutral wood inside and 100% reusable aluminium as weather protection outside • Sliding door with the advantages: slim profile, larger proportion of glass, excellent heat insulation, smooth-running sliding function • As from January 2010, the first Minergie (Swiss low energy standard) certified sliding door Ernst Schweizer AG, Metallbau

8. Customer orientation Letterboxes: classic design and modular • 1974 development with the designer and artist Andreas Christen (1936-2006) • Further development and customer-specific configurations feasible thanks to modular construction • Process reliability by means of industrial series manufacture of the semi-finished products • Design: plastic inside and weatherproof aluminium outside • Ecological through consideration of the life-cycle assessment during development and recycling Ernst Schweizer AG, Metallbau

9. Employees and society: We work together fairly and responsibly – within the company and with our partners • We see our employees as people and not just as manpower. At the workplace they should be able to use their skills and develop further. We promote appropriate training and further training. • We offer all employees the same chances and rights. For the equivalent work and performance, the salary is also the same. • We commit ourselves to correct and honest business behaviour, support fair business development and conform with human rights. Ernst Schweizer AG, Metallbau

10. Employees and societyJobs • Sustainable management as the most important basis for maintaining and developing jobs • Creation of 50 full-time jobs since 2004 of which 10 in 2009 • Cooperation with people from 21 countries • Package of measures for a deterioration in the market and incoming orders: Increasing own added value, strengthening sales organisation, recruitment stop, internal transfers, compensation of hours, promoting part-time jobs, short-time work, renovation and project work, early or partial retirement Ernst Schweizer AG, Metallbau

11. Employees and society Training and further training • 44 apprentices in 6 occupations • 3 half-day seminars for new employees • Regular technical and management further training, German courses for foreign language employees • Active cooperation with polytechnics, etc. • Training fund of Ernst Schweizer AG, founded by Frau Kathrin Schweizer, for training and further training under the aspect of sustainability and equal opportunities Ernst Schweizer AG, Metallbau

12. Environment: We take care of the environment – with the products and in the entire company • With our products we pay attention to a low environmental impact and low use of resources over the entire service life – from the production of raw materials over manufacture, assembly and application up to recycling and disposal. • We make a particular contribution to the environment through our products for energy saving and solar energy utilisation. • Environmentally conscious behaviour should be implemented in all areas and functions and at all levels of our company. We ensure that we not only fulfil all legal requirements but also continually improve our environmental performance. Ernst Schweizer AG, Metallbau

13. EnvironmentProduct ecology using the example of facades Ernst Schweizer AG, Metallbau

14. Environment: Product ecology Facades: Optimising product ecology • Carrier section • Aluminium instead of steel > weight saving • Aluminium section statically optimised > material saving 12.7 t instead of 43.4 t (70% weight saving) Ernst Schweizer AG, Metallbau

15. EnvironmentEnvironmental management • Management system • Energy statistics since 1978 • ISO 14001 (since 1996) • Ecobalance of the entire company • Vehicle procurement according to ecological criteria • Behaviour changes • Employee seminars • Reduction of business trips and travel to work via route optimisation, Eco-Drive driving courses • Support of public transport for employees, parking spaces subject to charge Ernst Schweizer AG, Metallbau

16. EnvironmentEnvironmental management • Infrastructure • Environmentally friendly paint shop, heat recovery plant central compressed air system • Heat insulation factory building, solar power plant • New Minergie® standard wood/metal frame factory in Möhlin • Connection to the district heating grid with wood chip heating • Solar cooling of the server room Ernst Schweizer AG, Metallbau

17. Long-term key data – 30 years of energy collection Ernst Schweizer AG, Metallbau

18. Profitability: Efficiency and profitability ensure our competitiveness and further development • The annual cash flow of our company is used for the conservation of value and the further development of the company as well as for the employee bonus and the dividends. • We want to remain an independent family company. Adequate equity financing forms the basis for this. • The economic success is based on motivated employees, customer-oriented products and efficient processes. It enables us to secure jobs as well as to create social and ecological benefits. Ernst Schweizer AG, Metallbau

19. Profitability: Competitiveness and further development • Infrastructure • 2006 commissioning of the new Minergie standard office and factory building for metal frames and components in Möhlin • 2009 enlargement of the production area for solar panels and photovoltaic assembly systems, new production location for windows and doors in Affoltern a.A. • 2009 new docking site for dispatch of solar panels and energy recovery renovation of the facade • Industrial order process • 2008 new processing centre for solar panel frames • 2008 commissioning of a new fully automatic attached parts plant for individual parts such as weatherboards, etc. • 2009 new production plant for solar panels • 2009 new processing centre for wood/metal sliding doors • Company expansion • 2009 purchase of Tobler Metallbau AG, St. Gallen, 20 employees Ernst Schweizer AG, Metallbau

20. ProfitabilityERP-system and configurators in the company Ernst Schweizer AG, Metallbau

21. Sustainability as daily routine:Using the example of solar energy systems • Consideration of all aspects of sustainability within the company demands the careful and balanced planning of projects and tasks • The requirement specification must consider the four dimensions: customer orientation, employees and society, environment and profitability Ernst Schweizer AG, Metallbau

22. Organisation of the business areaSolar energy systems Customer oriented services: • Innovative and aesthetic solutions for energy and environmental problems • Value enhancement of buildings Environment: • Reduction of non-renewable energy and environmental pollution • Energy recovery repayment duration for new collectors: 9.8 months Employees and society: • Creation of interesting and future-oriented workplaces Profitability: • Turnover growth • Synergies with metal construction • Profit increase Ernst Schweizer AG, Metallbau

23. Business area solar energy systems: Development and growth Turnover 2003: CHF 111 million (€ 72 million) Turnover 2008: CHF 139 million (€ 90 million) As of 2002, partnership with the German Max Weishaupt GmbH in order to deliver the European market with solar collectors. Ernst Schweizer AG, Metallbau

24. Annual planning: Sustainability Balanced Scorecard Customer orientation Employees and Profitability Environmental society orientation Processes Management system Customer orientation Employees and Profitability Environmental society orientation Overlapping parts of the management system Management system: Strategic, operative management Concept Customer orientation Employees and ProfitabilityEnvironmental society orientation Medium-term Strategy Customer orientation Employees and Profitability Environmental society orientation Processes Ernst Schweizer AG, Metallbau

25. Management systemSustainability Balanced Scorecard (SBSC) Ernst Schweizer AG, Metallbau Ernst Schweizer AG

26. Management systemSustainability report • Since 1994 Schweizer publishes an annual environmental report • Since 2003 in the annual sustainability report a comprehensive account is given of the company performance for • customers • employees • society • environment and investors • In 2009 the sustainability report was once again evaluated as being very good by the FH Nordwestschweiz. Ernst Schweizer AG, Metallbau

27. 2006 2007 2008 Customer-orientated services Operating revenue (turnover, CHF million) 124 135 139 Number of new products introduced to the market 10 8 8 Employees and society Number of full-time positions (VZS) 474 486 490 Number of apprentices 43 44 44 Environment Electricity and heat consumption in MWh (final energy) 6109 6343 7456 Operational environmental efficiency (CHF/1000 UBP) 24,1 24,8 29,6 Profitability Operating income (EBIT, CHF million)* 2,5 2,0 3,6 Proportion equity capital (% total capital)* 41% 40% 44%* according to accounts as per Swiss GAAP FER Sustainability key figures Ernst Schweizer AG, Metallbau

28. Abstract • Sustainable management is an opportunity for businesses, the economy and society. • Sustainable management is successful in the long-term, very satisfying, attractive and demanding. • Sustainability is integrated into our planning and management instruments • Sustainable thinking and handling has developed into the company culture that is supported by a large majority of the employees. • Our company has achieved a leading role in sustainable management. • We work together with other companies and associations on the subject of sustainability and have a good network. • Governmental frameworks are necessary for the promotion of sustainable management: Guidelines, incentive tax and promotional programmes. • Thanks to purchasing according to sustainable criteria, the public sector promotes the sustainable behaviour of the company. Ernst Schweizer AG, Metallbau