75 years of Egokiefer: Tradition and Innovation

Focus Prelude
Full of verve into
the second half of 2007
Dear Ladies and Gentlemen,
Dear employees
Up to now our forecasts have proved to be correct, and as expected
the economy has developed very well. The fact that this
positive development is holding up unabated is also reflected in
the very good half-yearly results of AFG for 2007. For AFG Arbonia-Forster-Holding
AG, whose fields of business – according
to the particular orientation of the divisions – depend more or
less directly on the economic situation within the building trade,
this means order books which are full and capacity which is
booked up to the hilt. These challenges, which must go hand in
hand with consistently high quality and a top level of service for
our customers, are something we face with relish. No surprise
then that we are looking forward to the second period of 2007
with that much more confidence.
Focussing on internationalisation
One of the targets we have set ourselves for the coming months
is to actively press on with further internationalisation of AFG in
Eastern Europe and in the Middle and Far East. Here, there is still
a lot of catching-up to do in order to meet the pent-up demand
for new homes and new commercial/industry buildings as well as
for redevelopment and renovation work. We aim to increase our
net share in foreign markets, i.e. outside our domestic markets in
Germany and Switzerland, from a current level of 22% to
around 50% in the future. The response to our innovative brand
products is very positive, particularly in the new EU member
states and the Middle and Far East. We have been able to secure
a number of good orders there recently. Despite our hectic dayto-day
business and various strategic challenges, I have taken the
time to prepare a few thoughts about our special anniversary.
Indeed, at AFG the current year is entirely shaped by the
company’s anniversary: after all, AFG-Holding has turned 20,
STI | Hart chrom 50, EgoKiefer 75 and Forster Kitchens and Steel
Techno logy is now 85 years old – albeit with the same levels
of enthusiasm and commitment as ever.
75 years of EgoKiefer – and not a hint
of things slowing down yet
This year, one of our «flagships» – EgoKiefer AG – celebrates its
75 th anniversary. The official celebrations took place on June
8 and 9. In recent decades, EgoKiefer – a company which grew
from humble beginnings as a small joiner’s workshop – has
emerged as the leading manufacturer of windows and has distinguished
itself with numerous international design, technology
and environmental management awards. An excellent – and the
most recent – example is the award-winning XL ® window technology.
This window sets new standards in terms of energy and
the environment by helping measurably to save energy. However,
anyone who looks back of the history of EgoKiefer will soon
notice that the path from then to now has been anything but
straightforward. Far from it – it is dotted with many highs and
lows as well as various changes in name and ownership. This is
one of the reasons why I am still proud to this day that we managed
the acquisition of EgoKiefer from the estate of Uniwood
Holding AG (Erb group) in 2004, despite the intense national and
international competition, and to integrate it as a new fourth
division into AFG. Since then, the brand has gone from strength
to strength. Today, when people think of windows, they think of
EgoKiefer! So, here again, congratulations are due to EgoKiefer
AG on reaching its 75 th birthday.
1
Independent and autonomous brands –
departing for new markets
AFG cares a great deal about looking after its brands, about
strengthening the brands and about developing them further.
This also includes the independence and corporate flexibility of
each and every AFG company. Every AFG subsidiary must establish
itself in existing markets and develop opportunities in new
markets. What holds together AFG is our shared vision – a vision
we work on every day, rigorously and without compromise. It is
the unshakeable will not only to reach the top in all areas, but to
stay at the top – both in terms of our ability to deliver innovative
products and in terms of staying wide awake in our understanding
of customer requirements. At EgoKiefer AG, this is documented
impressively with an own name, an own corporate identity
and, at the same time, a departure into new markets,
something which perfectly reflects the philosophy of AFG. In the
windows and doors sector, virtually 100% of our business comes
from the Swiss market, and the size we have now reached here
will make further sustained growth difficult. From this strong
domestic launch pad we now feel strong enough to expand into
foreign markets with our windows and doors. We are currently
examining suitable acquisitions in Europe. All this means that
another exciting chapter in the history of EgoKiefer AG is about
to unfold. We are also looking at potential acquisition projects in
the field of surface technology, even though the Division Surface
Technology already has by far the most international outlook
of any division in AFG. In fact, it is completely at the opposite
end of the scale, with around 100% of our production being
destined for foreign markets.
Ready for the future
For us, corporate success should always be shared by shareholders,
customers, partners, employees and the wider public. With
the increase in capital stock which was completed on May 4, 2007,
we have established a basis for further growth which will allow
us to create further domestic and foreign jobs. The new AFG
Corporate Center is already a proud landmark which represents
our continuously growing enterprise – an enterprise which is dynamically
moving into the future, with no signs of slowing down.
Yours sincerely
AFG Arbonia-Forster-Holding AG
Chairman of the Board of Directors and CEO
Dr. Edgar Oehler