Annual Report 2006 - Munters

Moisture Control Services (MCS) Divisionof MCS’ sales. No new large-scale disasters occurred during2006. These efforts, especially in the US, have historicallybeen very important to our operations. Accordingly, theDivision’s strategy is to reduce the relative significance ofcatastrophe-related damage in the US by instead concentratingon growth of base business in the region. During the year,a program was launched to increase growth in the US, whichresulted in increased initial costs and a temporary reductionin profitability.StrategyImprove competitiveness and margins by focusing onproductivity, project management and purchasing, andthe implementation of the mobile IT platform.Increase market share through innovative customersolutions and professional key account management.Rapid expansion in key markets such as the US, bothorganically and through selective acquisitions.Expand temporary temperature and climate-controloperations.Find solutions that support the sustainable developmentof community and climate.Continue to strengthen leadership and organization witha focus on earnings and employee development.MCS continues to focus on delivering high-quality, cost-efficientservices, especially for more minor insurance damage,but will also continue to expand its expertise and capacity tohandle more types of large losses.For 2007, MCS would like to expand its operations withinthe area of temporary humidity and temperature controls.Currently, these operations account for 13 percent of MCSsales. During the year, MCS will develop a plan for increasedgrowth and further cooperation with its sister divisions,Dehumidification and HumiCool.CUSTOMER CASEFocus 2007Efforts will continue during 2007 to improve the Division’sprofitability and to deliver results within the strategic initiatives.MCS intends to create a scalable business model basedon successful and cost-efficient routines and implementstandardized and automated work routines throughout theoperation. The division will also place significant emphasis ondeveloping and strengthening work on key accounts withinthe insurance industry. Work on key account sales is expectedto result in framework agreements accounting for a higherpercentage of total sales and increased market share. MCS isalso planning to significantly expand in the US by both growingits workforce and through actively seeking out acquisitioncandidates. The division is also continuing to build a stableplatform for operations in Germany, with increased profitabilityas the goal. The Division is currently underrepresented inthe Asian market, but is well-prepared to increase its presencein the region, with a focus on the Japanese market.Global agreement for property damage restorationOne of the larger customers within Munters divisionMCS is AXA Group, an international insurance andwealth management provider. Since some time Muntershas a global frame agreement with AXA for propertydamage restoration. AXA strives to make its claimshandling process more efficient with a differentiatedcustomer experience. Munters was the supplier thatcould best meet AXA’s demand for a global presence,modern technique and uniform work routines. Thecooperation has developed very favorably during 2006,with several local agreements and increased volume.Munters has also made a strategic commitment tosustainable development and will work closely withAXA to move that process forward.22 M U N T E R S A N N U A L R E P O R T 2 0 0 6