ANNUAL REPORT 2010/11 - Schumag AG

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34 Group management report❚ OPPORTUNITIES ANDOUTLOOKPrecision engineeringAfter we had been able in 2010/11 to achieve aclear increase in sales as compared to the previousyear to EUR 55 million we even increased it againin fiscal year 2011/12 to EUR 57 million. In ourcorporate planning for 2012/13 we currently assumea decline to EUR 53 million whereas for fiscal year2013/14 we are anticipating a moderate growthto EUR 56 million again. The current situation ofincoming orders reflects the general economicdeterioration within the automotive sector. Wesee our growth potential in the extension of newproduct lines and in the development of new salesmarkets.An essential share of our production in precisionengineering will continue to be expected in thearea of component manufacture for internalcombustion engines. In our estimation this keytechnology will set the tone at least for one moregeneration. The permanently rising need forsavings as well as the coupling with alternativepower generation technologies lead to a continuouslyincreasing complexity of customer requirements.We are capable of facing this challenge becausewe see a competitive and technology advantage inmany of the products manufactured by us. We willalso use these advantages for the extension of ouroffered range. This is also the subject of permanentdiscussions with our customers.Furthermore, our many years of experience allowus to offer equipment designs to our customers(in terms of ideal solutions). We will also in futureprovide options to manufacture sophisticatedhigh-tech components.Within the scope of our corporate philosophy wedeal with various process developments, also outsidethe automotive sector. In addition, we intendto enforce further process developments by anextension and intensification of our internaltraining activities.Due to the technological unique selling propositionof our precision engineering division we expectonly minor fluctuations in our order receipt andsales forecast.The crisis in the German photovoltaics marketwhich was largely caused by political decisionscaught us flat-footed. We were therefore unableto maintain our strategy to develop parts andcomponents for photovoltaics systems at ourprecision engineering division. Discussions heldin the public about the future of the compensationpaid for electricity fed into the grid lead touncertainties and have caused severe slumps insales at national level. For this reason the developmentof Schumag products in this area will notbe pursued for the time being due to incalculablerisks.The structure of our offered range will be consistentlyenhanced. Our customers are increasingly advisedon production technology and this cooperation leadsto a technical improvement of the manufacturedcomponents.We aim at a permanent extension of ourproduction basis in order to meet the continuouslyincreasing requirements of our customers. 180years of experience in precision engineering areproof of our flexibility.
SCHUMAG AG 35Plant engineeringOur subsidiary Schumag BR Energy GmbH has sofar been unable to generate any significant salesfrom the variety of initial business contacts. This isnot surprising considering the fact that in the plantengineering business it usually takes several yearsbefore concrete business contracts are concluded.However, numerous requests for offers, declarationsof intention and framework agreementsprove that potential opportunities do exist. Ifthese can be realized, orders may be receivedin the areas of pipeline equipment and energycomponents.We cannot rule out, however, that the furthermarket exploration will be obstructed by currentlyunforeseeable events and that our efforts may fail.The establishment of the additional segment of"regenerative energies" in which, apart from theproject planning of large photovoltaics systems bythe joint venture, also function and safety tests ofinverters planned by Schumag AG has been cancelleddue to the above mentioned developments.Overall forecastNotwithstanding all improvements in its core areathe company continues to be in a difficult situation.In spite of its strong position in the marketdue to its technological unique selling propositionin the area of low manufacturing tolerances and itsconsiderable reputation in the market the companyhas so far not been able to reach its targets.
Page 1 and 2: ANNUAL REPORT2010/11precise by trad
Page 3 and 4: CONTENTSLETTER TO THE SHAREHOLDERS
Page 5 and 6: SCHUMAG AG 3Date for the general me
Page 7 and 8: SCHUMAG AG 5At the first meeting of
Page 9 and 10: SCHUMAG AG 7audit report on the ann
Page 11 and 12: SCHUMAG AG 9within the scope of the
Page 13 and 14: SCHUMAG AG 11DECLARATION OF COMPLIA
Page 15 and 16: SCHUMAG AG 13According to the 3 rd
Page 17 and 18: SCHUMAG AG 15❚ COURSE OF BUSINESS
Page 19 and 20: SCHUMAG AG 17Compensation ReportThe
Page 22 and 23: 20 Group management reportStock Cor
Page 24 and 25: 22 Group management reportThe resul
Page 26 and 27: 24 Group management report❚ ASSET
Page 28 and 29: 26 Group management report
Page 30 and 31: 28 Group management reportAt our mo
Page 32 and 33: 30 Group management reportThe order
Page 34 and 35: 32 Group management reportInfrastru
Page 38 and 39: 36 Group management reportIn times
Page 40 and 41: 38Consolidated financial statements
Page 42 and 43: 40Consolidated financial statements
Page 44 and 45: 42 Notes to Consolidated Financial
Page 48 and 49: 46Notes to Consolidated Financial S
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84 Notes to Consolidated Financial
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106Notes to Consolidated Financial
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108 Independent Auditors' ReportIND
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precise by traditionSCHUMAG Aktieng
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ANNUAL REPORT 2010/11 - Schumag AG

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