Annual Report - SIG Combibloc

16 Letter from the Chairman
Dr. Willy Kissling
Dear Shareholders
At mid-year 2003, the Board of Directors decided to position SIG as a global provider of
packaging materials, equipment and services for beverages, leading in selected markets.
This focus on attractive segments of the rapidly growing beverages market has created
a solid foundation for sustainable value generation for the Group.
In 2003, SIG Combibloc continued to demonstrate its innovation and, with its aseptic
beverage cartons and filling machines, was again the main pillar of the Group. The portfolio
of this division offers the entire Group a steady range of highly attractive opportunities
for securing profitable growth. Through selective expansion and strengthening of our
competitive position, particularly in the vigorous markets of Eastern Europe, the Middle
and Far East, we intend to participate at an above-average rate in the profitable growth market
of beverage cartons. Consequently, in the coming years, we shall continue to focus our
investment projects on the business activities of SIG Combibloc. The ability to invest
gradually, and in coherence with prevailing economic developments and our own market
successes, limits the corresponding risks.
The continued focus of SIG Beverages on stretch blow-molding, filling and labeling machines
reflects the need of our customers to obtain these key elements of beverage filling lines
as solutions from a single source. Here, the objective is to create the prerequisites to achieve
a sustainable market position and profitable growth in the so-called bottle business.
In order to focus its investment resources on expanding the future core business, the Group
is withdrawing from the other activities. First business units have already been divested
successfully. SIG Pack, active in the sector of dry goods, will be transferred to a new owner.
With its future Group portfolio, SIG possesses a unique position within the attractive
beverages market, as the product range covers both aseptic and non-aseptic packages
made of either carton or plastics. Over and above this, SIG can actively exploit synergy
potentials that arise in the market as well as on the operational level. The financial markets
responded positively to our new strategic orientation.