table of contents Editorial 2 Company Locations 4 Company Structure 5 <strong>INTEGRA</strong> Real Estate Ltd. 6 <strong>INTEGRA</strong> Biosciences Group 8 Aquametro Group 10 SIGNAL Group 12 <strong>INTEGRA</strong> Engineering India Ltd. 14 Micronic B.V. 16 Audior's Report 17 <strong>INTEGRA</strong> Group - Key Figures 18 Development of the Company 19 Addresses 20 1
editorial 2011 <strong>INTEGRA</strong> <strong>Holding</strong> Ltd. is an investment company. The ORGU foundation based in Sarnen in the Swiss Canton of Obwalden holds in excess of 80% of its stock capital. The primary charter of the foundation is to: • Ensure the independence of <strong>INTEGRA</strong> <strong>Holding</strong> Ltd., and • Reinvest profits into innovative companies. As the operating arm of the ORGU foundation, <strong>INTEGRA</strong> <strong>Holding</strong> Ltd. pursues the goals of the foundation while taking an active and farsighted approach to enhancing the value of the <strong>INTEGRA</strong> Group. Historians will record 2011 as a year full of major crises, with an aftermath that will be remembered for a long time. The year was marked in March by the horrifying magnitude 9,0 earthquake on the eastern seaboard of Japan that triggered a devastating tsunami. As a result, the cooling system at the Fukushima nuclear reactor was destroyed, leading to a partial core meltdown. Many governments – with Switzerland taking the lead – reacted immediately by resolving to opt out of nuclear power. This reaction came without a fundamental evaluation of the consequences or impacts of their decisions, and did not appear to be part of a thought through plan. Today it is evident that while this hasty debate on energy has already subsided, the rash decisions taken will soon overtake us on political, economic, social, and environmental fronts. Consequently, one can expect energy costs to keep rising in the short term in Europe, whilst aspiring nations like China, India, and Russia are definitely not going to forego nuclear power – because they simply can’t afford to. We hope that what is affecting us directly and more severely – the financial and monetary crisis in Europe that does not seem to ebb – is short lived. This crisis has not only precipitated government reshuffles, notably in Italy and Greece, but has also led to overvaluation of the Swiss Franc versus other major Western currencies, in particular the Euro and the US Dollar. Compared to its average prior year exchange rate, the US Dollar dropped another 25% – reaching a historic low of CHF 0,78/$ against the Swiss Franc. Similarly the Euro lost another 18% in value compared to the previous year exchange rate average – touching a low of CHF 1,13/€. It should be noted that both these currencies had already lost considerable ground versus the Swiss Franc in 2010. The ensuing grave consequences for our exports caused the Swiss National Bank to take the courageous and long-awaited decision on September 6, 2011, to set a bottom threshold of CHF 1,20/€. Even at this rate, however, the Swiss Franc is highly overvalued in terms of purchasing power parity. Hence, Swiss products are much more expensive than those of our foreign competitors and correspondingly disadvantaged. This handicap is prevalent not only in Europe, but in relative terms in other markets too, especially Asia. In order to uphold their competitiveness as far as possible, Swiss exporters were again forced to grant big discounts to offset the Franc’s rise and thus accept eroded margins. This is apparent in financial statements showing low or disappearing profits. Furthermore, Swiss firms were forced to underpin their differentiation by bolstering innovation and putting significant pressure on their suppliers to lower prices and/or seek cheaper alternatives abroad. Such conditions have necessitated increased outsourcing of direct and indirect jobs, including production, to other countries – a trend that is simply going to accelerate the ongoing degeneration of Switzerland as a manufacturing nation. 2
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