100 % FUTURE - ALNO

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VIII. TARGETS AND STRATEGY
The primary objective of the Managing Board and of all corporate units is to restore the company
to financial health, competitiveness and sustainable profitability. The ALNO AG Supervisory
Board approved the extensive “ALNO 2013” future concept in January 2010. This future concept
is intended to structure administrative processes and production structures more efficiently. The
reorientation of the brand and sales strategy is also targeted at strengthening the international impact
of all Group brands. In parallel, synergies are to be exploited, and the complexity of products and
production is to be reduced.
In this context, “ALNO 2013” should not only be regarded as a concept for fundamental restructuring,
but also as the basis for a paradigm shift.
Under the central “ALNO – One Company” mission statement, the desired cultural change can be
characterized particularly by the following aspects:
• Value-creating factors will be of central significance. Quality will be given priority over quantity in
this context. Performance-based measures comprise absolute and relative profitability, cash flow,
and return on capital.
• Priority is given to Group interests ahead of the interests of the company’s individual locations. With
the reorganization of Group structures that has already occurred, a shift is to be made away from
site-related corporate functions towards cross-Group and customer-oriented process thinking.
Individual corporate functions will be centralized along the value chain. This is particularly intended
to exploit Group synergies, and to efficiently structure and position the overall organization.
Targets and measures:
IMPROVING THE EARNINGS POSITION AND ENHANCING MARKET SHARES IN GERMANY
In order to achieve this objective, the Group will need to refrain from entering into low-profitability
or unprofitable business in the future. In addition, the company will also focus on boosting its
gross profit margin, which is to be attained through improved furniture quality and more efficient
purchasing, in particular. A marketing and sales campaign with a clear focus on sales channels and
customer groups, which is realized through a reorganization of the sales organization under one
operational management for all brands and products, and which has already been implemented,
also supports this objective. Synergies are to be exploited to a greater extent, and processes are to
undergo continuous improvement, in order to realize the planned enhancement of the gross profit
margin. Product and production complexity is to be reduced at the same time. Fixed costs are also
to be lowered, and financial stability is to be strengthened.
REORIENTATION AND STRENGTHENING OF THE SALES FUNCTION, AND
STRENGTHENING OF THE EXPORT BUSINESS
The sales function has already been restructured to reflect customer groups and products in order
to position the Group brands more clearly. As a consequence, kitchens from the ALNO brand
will be sold exclusively through furniture retailers, kitchen specialists and real estate developers.
WELLMANN is oriented to delivering the mid-segment in these channels. The IMPULS and PINO
brands will be placed in the lower segments of the retail furniture trade and the flat-pack furniture
business, with PINO positioned as an entry-price brand. IMPULS will also be deployed in project
business. The foreign subsidiaries have already been partially liquidated or restructured into sales
units, and switched to direct invoicing. This will relocate the administrative tasks of the export
function to Germany. The sales function abroad is also to be strengthened by the servicing and
training of trading partners. Among other measures in this context, working groups have been set
up to strengthen sales, and the product portfolio has been adjusted to reflect local customer and
market requirements. New growth markets for the ALNO Group will also need to be tapped, and