We make our customers successful. - Oerlikon Barmag

Outlook.
This year it is especially hard to give a clear outlook. Currency movements between Yen, Dollar and our
most important currency, Euro, are a big question mark and clearly a potential threat; however their
negative effects could be offset by positive developments already visible in many markets, particularly
the USA.
In the synthetic fiber business we have projects in prospect which will ensure utilization of existing
capacity beyond the coming year-end, subject to final agreement on financing. In the natural fiber business
we see a mixed picture with good prospects for ring-spinning and embroidery but a number of
question marks affecting rotor-spinning and to some extent twisting.
As part of the Tempus program we shall further streamline our activities in Germany and Switzerland and
thereby release our non business related real estate – probably the greater part of the real estate we
currently occupy in those countries will be released over the next two to five years. These properties will
be restyled as business parks, rented out and subsequently sold, as we have already done at various
locations. This will call for capital investment beyond normal levels in the next two years, including
of course China where we are currently investing EUR 30m in new production facilities. Ultimately the
sale of real estate no longer required for our businesses in Germany and Switzerland should realize some
EUR 60m.
In Transmission Technology we expect a small market improvement in the second half of 2004, based on
customer forecasts.
For Surface Technology with its good results and continuing market improvement we see the time is right
for our planned divestment of this activity.
For Saurer as a whole we expect 2004 will bring slightly lower sales and a slightly higher profit than 2003.
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