KATHREIN GROUP KATHREIN MOBILCOM MEXICO (KMM) Strategic Purchasing Presentation 2015 PROVIDING THE INFRASTRUCTURE FOR A SMART WORLD
Kapitelname (28pt, regular, black (28pt, regular, black) 3. Maximal 6 Contents 1. KATHREIN the company 2. Our Pillars of Success 3. Product Overview 4. Unsere Mobile Communication Geschäftsbereiche Market with exponential growth 5 KMM The best of two worlds 2
KATHREIN WE THINK AHEAD 1. 3
About KATHREIN Over 95 years of success, specialist in complex high frequency technologies Founded in Rosenheim in 1919 by Anton Kathrein Family owned business in the 3rd generation 100% independent Total generated turnover of more than 1.36bn in 2013 56 companies including 18 production plants Roughly 8,900 employees worldwide From the cellar workshop to - innovation and technology leader 4
Kathrein Worldwide North America Dallas, TX US (1) 98 Europa Rosenheim DE, RO, AT, CZ, HU, IT, PT, FR (16) 7,748 Asia Hong Kong CN (2) 767 Central America Mexico City MX, (1) 146 Middle East Dubai 10 South East Asia Bangkok 38 Latin America Brazil BR (1) 146 Africa Johannesburg 20 Central hubs Production Plants (total) Employees 5
Our Executive Board Mr. Frank Ulmann COO Mr. Joe Doering Sales & Marketing Mr. Anton Kathrein CEO Dr. Michael Weber CR&D Mr. Norbert Schindler CFO 6
Milestones in our Development 1919 Foundation of the company in Rosenheim by Ing. Anton Kathrein. Manufacturing of lightning protection. 1972 2012 Prof. Dr. Anton Kathrein succeeds his father as head of the company. Fast company expansion. Anton Kathrein jun. becomes new CEO after his father s death 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Radio Automotive TV Satellite TV Mobile 4G Introduction of radio using Kathrein antennas Kathrein s first automotive antenna is launched The TV era kicks off with Kathrein antennas Satellite TV spreads using reception technology from Kathrein Kathrein technology enables digital mobile communication Introduction of LTE in mobile communication using Kathrein antennas 1923 1938 1952 1989 1992 2010 2015 Market launch of the K-BOW indoor capacity solution 7
Kathrein in Numbers Since 1986 over 8m base station antennas delivered An average 9.7 % sales growth per year since 1973 Over 1,000 active patents Over 800,000 amplifiers manufactured for broadband networks Since 1976 7,000 TV and radio broadcasting systems installed in 140 countries worldwide Since 1986 over 6.5m filter products for mobile communication systems delivered Since 1986 over 8m SAT antennas and LNBs sold In 2013 15m vehicle components delivered 8
OUR PILLARS OF SUCCESS FOUNDATION FOR GROWTH 2. 9
Our Pillars of Success Leadership on innovation and technology Quality Significant R&D activities, resources and investments to secure a technology lead Outstanding quality guarantees long-lasting products and solutions High product reliability Reliable company with reliable products and solutions 360 Costumer Care Kathrein is a competent companion, advisor and partner 10
OUR MISSION SHAPING THE CONNECTED WORLD 3. 11
Actively shaping the connected World We solve the most complex requirements and challenges. We use this deep-rooted strength to act as a driving force in shaping the world of the future, where technologies converge. 12
PRODUCT OVERVIEW 4. 13
The world of Kathrein Product Overview 14
The world of Kathrein Product Overview 15
The world of Kathrein Product Overview 16
The world of Kathrein Product Overview 17
The world of Kathrein Product Overview 18
The world of Kathrein Product Overview 19
Mobile Communication Market with exponential growth 5. 20
Mobile Communication Market with exponential growth Growth of Data Transfer Rates in Mobile Communication Terabytes per Month 6,000,000 92% CAGR 2010-2015 6.3 EB 3.6 EB 3,000,000 2.2 EB 0 0.2 EB 0.6 EB 1.2 EB 2010 2011 2012 2013 2014 2015 21
(000s) Mobile Communication Market with exponential growth LTE-capable Antenna Shipments by Band Configuration. World Market Forecast 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2011 Multi-band 2012 Dual-band 2013 Single-band 2014 2015 2016 2017 2018 Source: ABI Research 22
Number of Units Mobile Communication Market with exponential growth Highest Monthly Order Intake in Kathrein History (Example Passive Antennas) Today Huge Jump in Demand Sep.-Dec. 2013 vs. Jan.-Apr. 2014 +200 % Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 Apr 2014 23
KATHREIN Mobilcom Mexico Taking the best of two worlds 6. 24
2015 KMM Start Operations in Tlaxcala, México 25
Taking the best of two worlds Germany s strengths More than 90 years of antenna experience Highly skilled R&D Top of the line laboratories and testing equipment Well established administration and finance team Demanding and profitable market Established and well known brand name Germany is Mexico's 7 th biggest source of foreign investment (1999 Q1 2014: 8.654 billion dollars) Mexico s strengths Proximity to customers in the US and Canada Competitive environment in terms of labour costs, supply chain and taxes Access to the growing markets of Latin America Exports Mexico: 380 MMDD (+2.6% vs 2012) 16 th place according INEGI 84% of the exports = manufacturing sector Import Mexico July 2014: 34,691 million dollars (+ 3.1% vs. 2013) 26
What we found in Tlaxcala Strategic location near DF & Puebla, great access to infrastructure to move goods According to the San Francisco Chronicle, Tlaxcala is the safest state in Mexico 2. Labour stability, less than 1% rotation of workers Two of our neighbours have the most productive factories of their group in the world Very accessible real estate prices and low housing costs Education, starting the development of the dual program within companies and universities 2 http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/04/20/mexico_mix_safe_travel.dtl 27
Kathrein Mobilcom Mexico The new plant Project Description Production facility MCA and CAR (Automotive) Location Tlaxcala, Mexico Project start December 2013 Groundbreaking ceremony April 2014 Start of production March 2015 Project value 26 million Euro Size of land 100 000 m 2 Production area 12 800 m 2 Employees/Management 50 white collar Workers 185 blue collar 28
Taking the best of the two worlds Our mutual committment for a long term relations- and friendship Nuestro mutuo compromiso para establecer una relación de amistad y negocio a largo plazo 29
Ground Breaking Ceremony Successfully completed on April 28, 2014 start at 08:00 a.m. More than 150 guest participated, including the Governor, The Secretaria De Economica and Lic. Francisco Aguirre arrived with their helicopters 100% positive feedback from all parties concerned Reports in Newspapers, Radio and TV all over Mexico 30
Inauguration Ceremony Successfully completed on April 17, 2015 start at 12:00 pm. More than 300 guest participated, including Tlaxcala s Governor, The Secretario de Comunicaciones y Transportes Gerardo Ruiz Esparza 100% positive feedback from all parties concerned Reports in Newspapers, Radio and TV 31
Thanks QUALITY LEADS THE WAY! 32 Kathrein Mobilcom México General Presentation