30SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Economic <strong>report</strong>A traditional product with a modern interpretation, <strong>ALNO</strong>-CLASSIC links tradition and modernity. Presented at thecompany exhibition in autumn <strong>2011</strong>, the kitchen in countryhousestyle is designed to please all generations andcombines state-of-the-art technology with solid oak andtimeless glass surfaces.The Group's entry-level price segment, the PINO kitchen,was also developed further in the period under review.Since <strong>2011</strong> Pino offers low-cost knock-down kitchensin additional modern colours especially for young peoplewho are increasingly following this trend towards moredaring and fresher colours when furnishing their homes.Together with the trend colours cashmere, pink, red andblue, the high-gloss foil-wrapped design in particular createsfashionable highlights.The Impuls brand has also enlarged its range of colours.Despite this, however, speed remains the focus of attentionfor Impuls. Germany's fastest kitchen is ready for usewithin a few days. This kitchen consequently reflects theincreasing mobility and short-lived character of our society.Since no more than ten working days lie between receivingthe customer's order and installation of the kitchen, thereis no longer any reason for not moving to a new addressat short notice.The new Wellmann range was also launched in the financialyear <strong>2011</strong> and enlarged to include 25 new front colours.In this way, the Wellmann kitchens make for even greaterflexibility when planning a kitchen. As before, Wellmannfocuses on simple, classical modern, individual elegance.ProductionPfullendorfDuring the financial year <strong>2011</strong>, the management beganto establish new structures to optimize competences andcosts at the four production facilities in Germany, with theaim of further increasing the real net output ratio and quality.A clear commitment to the Pfullendorf location was a firststep in this direction. By establishing a production line forglass fronts here, the <strong>ALNO</strong> Group has decisively improvedits manufacturing competence in this sector.Fronts finished with a glass or ceramic surface are producedon this new line. The glass or ceramic panels arecut to size from larger panels on a CNC cutting table,either individually or in series, and subsequently groundand polished together with the substrate. This knowhowand flexibility in producing standard carcase parts(special surface, cutting to size, flexible manufacture ofparts) allows <strong>ALNO</strong> to meet individual customers' wishesmore effectively; they are also essential for the competentmanufacture of brand-related products.In addition to glass production, the company also investedin a new packaging machine for small items and a newworktop saw for the Pfullendorf plant in <strong>2011</strong>. The internalvalue-adding processes for such components as glass,lacquer or ceramic fronts meeting the <strong>ALNO</strong> brand'sclaim are also to be developed further and expanded atthe Pfullendorf location. A "centre of lacquer competence"for the <strong>ALNO</strong> Group is to be established at the Pfullendorflocation.EngerA new Wellmann product range based on the new 13centimetre grid size was introduced at the Enger locationat the start of <strong>2011</strong>. The <strong>ALNO</strong> and Wellmann rangesconsequently use the same grid size. For production andlogistics, this changeover posed a considerable challenge,as two product ranges had to be manufactured in parallel.The materials for the old product range were completelyremoved from the production process at the end of <strong>2011</strong>/start of 2012. This means that the "old" Wellmann isnow only available for handling complaints. From 2012onwards, production in Enger will concentrate exclusivelyon the new product range. The new grid and gap size usedby Wellmann allows modern kitchens to be plannedfunctionally and ergonomically in future.In the financial year <strong>2011</strong>, the company invested in a newCNC drilling and assembly line for order-based productionof kitchen furniture fronts in order to meet with ever higherindividual requirements for the new Wellmann range. Anew automatic drilling and dowelling machine for carcaseelements was also commissioned in summer <strong>2011</strong>.Further investments were also made in the final assemblyarea, in the form of a new assembly line for wall units.With all-automatic press-bonding of the carcase partsand robots to fit the wall unit fixtures, this line representsthe latest state-of-the-art and will ensure high-qualitymanufacture. Plinths and wall units have additionally beenpacked in high-quality cartons since the end of <strong>2011</strong>/startof 2012.
SINGLE-ENTITY AND GROUP MANAGEMENT REPORT | Economic <strong>report</strong>31BrilonThe Impuls brand is produced in Brilon, where productionis characterized by very short turnaround times. A newpanel-cutting saw was purchased for worktop productionhere in order to be able to meet future demands. With thissaw, end and depth cuts can be produced on a singlemachine, thus further reducing the time required for cuttingpanels to size. A new drilling machine started operationin the drawer and pull-out assembly line. Innovative linearmotion drives have resulted in considerably shortermachining times.Further optimization measures were successfully broughtto a conclusion in <strong>2011</strong>, not only in production and particularlyin picking the fronts, but also in the worktopwarehouse and cabinet assembly. The time-based managementassociated with these measures was brought intoline with the new conditions.The introduction of segmented glass doors was one ofthe highlights of product development. Due to the highlevel of demand, a special press for fronts was designedand commissioned at short notice in order to safeguardproduction.In conjunction with the plant's further modernization, themanagement also invested in a new saw for cutting worktops.This new machine will be commissioned in 2012.A good infrastructure with sufficient opportunities for physicalexpansion and a flexible workforce with many years ofexperience ensure good prospects for further growth byPino Küchen GmbH.The <strong>ALNO</strong> Group's future plans for the individual productionlocations include further investments in additional machinesto improve performance and quality in worktop and wall unitproduction, as well as in-house logistics.MarketingIn the financial year just ended, the <strong>ALNO</strong> Group's marketingactivities primarily concentrated on kitchen presentationsat trade fairs and exhibitions. On the one hand, thissatisfied the curiosity of both trade visitors and consumers;at the same time, it also highlighted the feel of the products,for the <strong>ALNO</strong> design must be touched in order to befully appreciated.CoswigThe Coswig plant primarily builds the Pino brand of kitchensfor the entry-price level. In <strong>2011</strong> too, this lean assemblyplant with low vertical range of manufacture focusedon stabilizing its manufacturing processes and improvingperformance with our trading partners. By streamlining thesupply chain to nationwide service with just a few daysbetween receiving and delivering orders, the plant wasable to meet the demand for exceedingly short deliveryperiods when necessary. The resources required for thispurpose were made available through flexible working timemodels and by enlarging capacity in the manufacturingsector. Productivity was improved with the aid of specificallytargeted optimization measures.The electronic exchange of data (EDI) with both customersand suppliers was further expanded in order to meet thehigh quality standards expected by our partners in thesupply chain.Trade fairs and exhibitions"Design on Stage" was the motto of the <strong>ALNO</strong> Group'strade fair and exhibition presences in January <strong>2011</strong>. TheEsprit home kitchen was presented for the first time at the"LivingKitchen" exhibition in Cologne which is part of theyearly international furniture trade fair "imm cologne". It wasa successful start, with the Esprit kitchen attracting greatinterest among the trade visitors. Our flagship, the <strong>ALNO</strong>MARECUCINA, also proved highly popular again. Otherproduct highlights included the new <strong>ALNO</strong>STAR SATINAon the one hand and the "quick kitchen" from Impuls onthe other.The boating exhibition "boot" opened in Düsseldorf atthe same time. Due to its maritime design, the <strong>ALNO</strong>MARECUCINA design study was also presented for thefirst time at an unrelated exhibition. The kitchen was wellreceived, as it not only links material aspects – MARE-CUCINA is after all based on the same materials that arealso used in boat building – but also the maritime lifestyleof the "boot" exhibition.