Values Vision 2012 – 2017 Objectives - the Schmidt + Clemens Group

Schmidt + Clemens
Annual Report
2011
S+C Annual Report 2011 1

Foreword by the Advisory Board
”The companies in the Schmidt + Clemens
Group have continuously developed from
pure stainless steel producers and processers
into problems solvers with a worldwide
presence and with a high level of competence
in engineering and services.“
In the past reporting year, companies in the Schmidt + Clemens
Group once again successfully put their good competitive position to
the test: In a highly heterogeneous market environment, sales could
be raised to euro 289 million and our plants throughout the world
could be utilised to full capacity. Partially weak margins, due to difficult
conditions in some customer sectors, nonetheless slimmed down
profits which, in 2011, were significantly below previous years.
What still dominated the earnings position, as in past years, was
the Spun Casting Division. It has long had an excellent market position,
especially in petrochemicals. On the positive side it should be
stressed that important progress has now been made in the Märker
Division as well. As early as last year, S+C Märker GmbH switched
back to the success track, and in this reporting period the English roll
manufacturer Bowers & Jones has fortunately succeeded in doing
the same. In both companies, management carried out the envisaged
measures for process optimisation and will henceforth concentrate
on reinforcing international marketing. At Extrusion Tooling Solutions
GmbH, which specialises in centrifugal casting tools, that road has
not yet been completely traversed, even though with the opening of
the Chinese service centre a milestone has been reached. All told,
the Märker Division has taken on more clear-cut contours in the
sphere of specified strategic objectives.
The development of the Group in economically difficult years under-
scores the correctness of management’s far-sightedly pursued strategy:
The companies in the Schmidt + Clemens Group have continuously
developed from pure stainless steel producers and processers
into problems solvers with a worldwide presence and with a high
level of competence in engineering and services. Whilst the Spun
Cast Division has for years already successfully completed extensive
major projects for plant builders and plant operators, Extrusion Tooling
Solutions GmbH was able, in this reporting year, to impressively
demonstrate those same skills for a well-known German plant construction
firm. Additionally, with smaller projects, S+C Märker GmbH
2 S+C Annual Report 2011
Lutz Werner, Chairman of the Advisory Board
as well as Bowers & Jones Ltd. could increasingly demonstrate their
skills in engineering and project management.
In parallel to this strong orientation in providing services, the Schmidt
+ Clemens Group has concentrated on its long tradition of competence
in metallurgy. Thus the Research and Development Division,
very ably managed for many years now, has once again developed
two exciting new materials. With their excellent corrosion resistance
and mechanical properties, these materials have proved to be extremely
interesting in commercial terms for the relevant customer’s
Market areas.
The mission statement, revised on a rotating basis, which management
presents at the end of this Annual Report, defines strategic features
as unambiguous guidelines for the coming years. Management
is also aware of the central significance of our workforce and is well
aware of its responsibilities in this regard. In that spirit, health management
and the profile of requirements for executives have been
additionally included in the mission statement.
The Advisory Board wishes to thank, on behalf of the owners, all
those who have moved development of the corporate group forward
with pleasure and commitment. Special thanks is extended to our
customers in this context for the trust they have placed in Schmidt +
Clemens. The existing creativity and the proven ability of our employees
and management to devise constructive solutions to problems,
even in a difficult environment, allow us, as the Advisory Board is
convinced, to continue looking forward into the future in a positive
spirit.
Yours faithfully
Lutz Werner
Chairman of the Advisory Board

Review of the year 2011
”The year‘s trends confirmed the
strategy we pursued.“
Jan J. Schmidt-Krayer, graduate engineer, Managing partner
Dr. Henning Kreisel, Managing director
The year 2011 was not a simple year for the S+C Group, even
though we could still end it with satisfactory results. The Arab
Spring and the Eurozone debt crisis roiled the markets. Events
in the markets that we work in reflected the image portrayed by
the business press: While some of our customers implemented
their investment decisions undisturbed, insourcing by other
customers proceeded with significantly more reserve. Sales and
financial results were therefore volatile during the course of
the year.
The year‘s trends confirmed the strategy we pursued: In particular
centrifugal casting has made its presence felt on all relevant
world markets and is therefore able to compensate for setbacks
in individual regions. At the same time, however, once more the
necessity of a second leg to stand on became very clear.
S+C Märker GmbH, undergoing restructuring since 2010, continued
on its successful path and raised its profit contribution
according to budget. Our English rolling company S+C Bowers
& Jones Ltd. also closed out the year very positively. This confirms,
as did the by now outstanding supply performance, that
the programmes for process optimisation were successful. Both
companies can now concentrate fully on market growth.
During the reporting year, S+C Extrusion Tooling Solutions
GmbH (ETS), operating in our extrusion business, successfully
completed a major order for a well-known German plant engineering
firm. That transaction, closely observed by many market
players, provided clear evidence of our project competence for
management of large-scale projects. The resulting boost to our
reputation comes at just the right time: In the Chinese market,
where the end-customers for this major plant project are relying
on German technology, ETS at the end of the year commissioned
its new ETS-Tianjin Distribution and Service Centre.
In connection with our many years‘ SAP project, on 1 November
2011 the system was also introduced for special centrifugal
casting projects at the Kaiserau site. Moreover, the new system
likewise went into production in our Malaysian subsidiary
Schmidt + Clemens Asia Sdn. Bhd. at the end of the year.
Best regards
Jan J. Schmidt-Krayer, graduate engineer
Managing partner
Dr. Henning Kreisel
Managing director
S+C Annual Report 2011 3

Positive results and perspectives
The 2011 business year was not easy for the S+C Group, but
closed with a satisfactory result: in a very heterogeneous market
environment, turnover increased to 289 million euros, whereas
profits were distinctly below the previous year due to weak margins.
The success of Schmidt + Clemens was underpinned once again
by the centrifugal casting division, which has an excellent position
mainly in the petrochemical segment. Märker GmbH, which
was already successful in 2010, was able to continue this upward
trend in 2011. At our English roll manufacturing company, Bowers
& Jones, measures to optimise processes and support international
sales were implemented and similarly led to a positive result.
4 S+C Annual Report 2011
Business development
Revenue distribution by region
(data shown as %)
Inland 30.86
The diagram shows sales by client
%Rest country. Products manufactured by the
of Europe 12.75
S+C Group are used worldwide.
1,000
800
600
400
200
0
400
300
200
100
0
Staff development in recent years
(respectively to 31.12.)
The company Extrusion Tooling Solutions GmbH, specialising in extrusion
tools, is on the right path and promises to develop positively.
The inconsistent and partly unforeseeable economic developments
in 2011 confirm the strategy pursued by the Schmidt +
Clemens Group: all companies were once classic producers and
processers of high-quality steel, but are now developing into
problem solvers with high engineering and service competence.
This alignment is complemented by a highly efficient research
and development department, which optimises existing applications
with innovative materials or opens up new market segments.
Rest of Europe 4.71
%
Other countries 3.66
North America 8.60
2005 2006 2007 2008 2009 2010 2011
Revenue development in recent years
(EUR mn)
2005 2006 2007 2008 2009 2010 2011
Asia 28.66
South America 10.76

Today, the Schmidt + Clemens Group is internationally active.
In addition to its German headquarters in Lindlar-Kaiserau, S+C
also manufactures in Brazil, Spain, the UK, the Czech Republic,
the Kingdom of Saudi Arabia and Malaysia. In addition to over
30 commercial agencies, three corporate distribution compa-
Production
Sales
Service sites
GERMANY Schmidt + Clemens GmbH + Co. KG,
S+C Extrusion Tooling Solutions GmbH, S+C Märker GmbH
The headquarters in Lindlar, Germany, is home to three S+C companies.
Highly-stressed special steel components and systems are
produced here. In addition to the German parent plant, S+C also
has production sites at six other locations throughout the world.
UK S+C Bowers & Jones Ltd.
S+C Bowers & Jones has its headquarters in Wolverhampton, near
Birmingham. This company’s specialty is the production of rolls for
pipe and copper wire plants as well as the engineering of components
for rolling mills.
CZECH REPUBLIC S+C Alfanametal s.r.o.
S+C Alfanametal produces high-quality static-cast components for
the petrochemical industry and is located in Tršice, near Brno.
SPAIN Schmidt-Clemens Spain S. A. U.
Schmidt-Clemens Spain is situated in Murieta in northern Spain,
between Bilbao and Pamplona. The company specialises in the production
of spun-cast components for the petrochemical industry
and direct reduction plants.
S+C Märker GmbH
S+C Extrusion Tooling
Solutions GmbH
ETS Tianjin (China)
Extrusion Tooling Solutions Ltd.
S+C Bowers & Jones Ltd.
Companies in the Forged Steel
Group
Schmidt + Clemens GmbH + Co. KG
S+C Spain S.A.U.,
Spain
S+C Brasil Ltda.,
Brazil
S+C (Asia) Sdn. Bhd.,
Malaysia
Spun Casting
production sites
Corporate structure
nies in the USA, India and the United Arab Emirates consolidate
our global presence. All our production sites operate in accordance
with consistently high manufacturing standards, and
simultaneously have sufficient capacity to handle both major
and emergency contracts with consummate professionalism.
BRAZIL Schmidt + Clemens Brasil Ltda.
Schmidt + Clemens Brasil was founded in the year 2000. The plant
is located in Jundiaí, near São Paulo, and produces spuncast components
for the petrochemical industry.
MALAYSIA Schmidt + Clemens (Asia) Sdn. Bhd.
Schmidt + Clemens Asia is located in Shah Alam/Kuala Lumpur,
where it also produces spun-cast components for the petrochemical
industry.
KINGdoM oF SAUdI ARABIA Schmidt + Clemens Saudi Arabia
is organisationally part of the Spun Casting Division with excellent
onsite service facilities and, for example, undertakes complete installation
of piping and piping systems.
CHINA ETS (Tianjin) Extrusion Tooling Solutions Ltd. serves as a
service base in China and in that way takes on an important function
in internationalising the Schmidt + Clemens Group‘s extrusion
business.
S+C Saudi Arabia Ltd.,
Saudi Arabia
S+C ALFANAMETAL s.r.o.,
Czech Republic
S+C Inc., Houston,
USA
S+C Middle East DMCC,
Dubai
Schmidt + Clemens GmbH
+ Co. KG India Liaison Office
Sales agencies
S+C Annual Report 2011 5

6 S+C Annual Report 2011
Consolidated Financial Statement
of the S+C Group as of 31.12.2011 (in thousand €)
Fixed Assets 37,274 39,214
1. Intangible Assets 2,949 2,727
2. Fixed Assets 34,260 36,442
3. Financial Assets 65 45
Current Assets 87,018 84,627
1. Inventories 41,496 39,390
2. Accounts Receivable and other Assets 37,955 41,242
3. Securities, Bank, Cash 7,567 3,995
Deferred Expenses / Deferred taxes 542 595
ASSETS 124,834 124,436
Capital Resources* 60,388 58,089
Special reserve for investment premiums 72 59
Provisions 25,145 24,978
Liabilities 39,016 41,310
1. Liabilities due to Banks 16,677 28,538
thereof due within 1 year 1,540 10,367
thereof due between 1 and 5 years 10,800 15,715
thereof due after 5 years 4,337 2,456
2. Accounts Payable 6,917 9,339
3. Other Liabilities 4,161 3,433
4. Received downpayments on orders 11,261 0
Deferred Income 213 0
Liabilities 124,834 124,436
* including shareholders´ accounts
31.12.2010 31.12.2011
© ElenaR - Fotolia.com

“Due to our excellent relationship with more
than twenty commercial banks worldwide, we
are in a position to implement complex financial
solutions for major projects and emergency
orders in the shortest possible time.“
The consolidated financial statement includes, in addition to the
parent company Schmidt + Clemens GmbH + Co. KG, all domestic
and foreign companies, in which S+C indirectly or directly
holds a majority share. The consolidated financial statement is
prepared in accordance with the Code of Commercial Law.
The group achieved in 2011 a consolidated turnover of 289 million
euros, which exceeded the business volume of the previous year
by nearly a quarter. With distinctly weaker margins, the financial
result was unable to match the growth in volume.
With a balance sheet total of 124 million euros, capital commitment
remained at the previous year‘s level. However, the
investment programme was continued without restriction. Asset
additions with 8 million euros (previous year 6 million euros),
as part of the long-term strategy, were distinctly above the depreciation
of 6 million euros. Current assets, despite the strong
increase in business volume, was able to be slightly reduced
compared to the previous year.
On the financing side, we used the still very favourable interest
situation and excellent rating of the S+C Group to increase our
long-term borrowed funds again by 4.3 million euros to a total
of 20.3 million euros.
Explanation to financial part
Ralf Klausmeier
International Treasury
More business volume with lower levels
of margin
Over and above this, there are also free loans and guarantees
in the amount of 116 million euros, which for the most part are
contractually assured for three years. Furthermore, for longterm
borrowing, there are also accruals for pensions of 10 million
euros available. Together with an above average equity ratio,
the assets of the Schmidt + Clemens Group are financed over
the long term. Overall, it is possible to react quickly and flexibly
to an increasing business volume with this financing portfolio.
Special mention should be made of the excellent business relationship
that exists with about 20 business banks globally. This
enables us to finance customer orders in virtually every country
worldwide.
S+C Annual Report 2011 7

New materials are successful
Service as an additional growth field
Our new materials Centralloy ® HTE for steam crackers, Cen-
tralloy ® 4852 Micro R for reformers and Centralloy ® HTD for
direct reduction plants successfully established themselves in
the marketplace in 2011. Worth stressing in this context was
the first-ever outfitting of a Midrex plant in the new Centralloy ®
HTD material with a tube diameter of 10.5 inches.
Particularly encouraging was the trend in the Service Division
where we offer installation of our products in customer plants.
In 2011, three major projects were booked in the Middle East
and Asia. Thereby, we successfully provided proof of our considerable
experience in processing and welding our materials.
With reliable partners on site as well as a series of additional
services relating to industrial furnaces, all of the projects were
completed in substantially shorter time than originally planned.
Our customers were thus in a position to re-commission their
plants much earlier than planned and in that way to achieve
impressive productivity advantages.
8 S+C Annual Report 2011
Petrochemical Industry and Special products
Manufacture of complete convection zones for steam crackers The business division is globally positioned. The high quality of
and steam reformers is now a permanent supply component of our products and services is recognised throughout the world.
our Spun Casting Division.
Due to our proximity to customers, we are a preferred and reliable
partner, both when business conditions are good as well
With the product lines in the Spun Casting Special Products Division
the order position improved throughout the entire year of
2011. Globalisation of this business field was further advanced.
as in times of crisis.
The international share of all sales comes to almost 50%. Revenue distribution by region
%
(data shown as %)
Other countries 4.09
Inland 27.19
Decanter for the food processing industry
Asia 31.80
% Remaining
EU countries 10.89
South America 11.80
Rest of Europe 4.80
North America 9.43
The diagram shows the distribution of sales
by client countries. The client and supplier
countries are not usually identical.

Further market potential identified – Internationalisation proceeds apace
After order intake was slightly exceeded in the first nine months
of the reporting year there was a slackening off in demand activity
in the final quarter. However, the budget was attained. Order intake
lies at about 25% above last year and sales are at the same
level. Adjusted for special ramifications, order intake and sales
were some 45% above those in 2010. Because of this, financial
returns were significantly above expectations, something that
was due to strict implementation of strategy and concomitantly
optimised processes.
Altogether market forces affected S+C Märker quite differently. In
components for standard pumps the market lagged in the fourth
quarter after a pick-up was perceived in the first three quarters.
Larger projects were not awarded in 2011.
In the offshore field, an extension of the existing NORSOK permit
is being sought in order to satisfy changed demands on materials
used in this market.
Revenue distribution by region
(data shown as %)
Asia 5.45
%
%
Rest of Europe 1.54 Inland 87.13
Remaining EU countries 5.88
S+C MÄRKER
The high quality and precision of our forged components have
also convinced our customers in 2011 in the field of specialty
ship construction. Thus we were able to secure projects for various
submarines and frigates.
Market analysis in the field of machine engineering and plant
construction showed that we still have considerable potential
there that will have to be systematically realised in 2012. The
demands of that market in regard to ready-to-install components
overlap with our strategy. We will continue to extend processing
depth and expand our services. The same applies to our competence
in metallurgy.
In 2011, S+C Märker‘s internationalisation was further consolidated
and the network of worldwide representative offices was
consolidated. Our export quota could be raised by 25%. Contributing
to our success here was also our participation in international
trade fairs and conferences, for example in China, the
Russian Federation and Italy.
In 2012, S+C Märker together with its parent company will par-
ticipate in the international scientific exhibition congress Achema
in Frankfurt. Additional appearances are scheduled for the Rio Oil
& Gas Show, IFAT in Munich and PowerGen Europe in Cologne.
This, together with the expansion of our resources in distribution,
will contribute to further internationalising our business.
S+C Annual Report 2011 9

Tough struggle in difficult terrain
In the first six months of the reporting year, the cyclical pick-up in
the extrusion market continued. However, we were forced to observe
a significant slowdown in the last two quarters, accompanied by a
massive price war and falling margins. This led to the hoped-for results
eluding us although sales for S+C Extrusion Tooling Solutions
GmbH (ETS) were 83.1% up on the previous year.
After a major project booked in the 2010 reporting year was successfully
completed, we were able to sign important follow-up orders
with the customer, one of Germany‘s major machine tool and
plant construction companies, and those follow-up orders once
again documented the two companies‘ strategic collaboration.
Process optimisation as a basis for growth
In order to increase manufacturing output, at the beginning of the
year optimisation of production processes was initiated. In tandem,
we started setting up an ”order co-ordination office.“ In the first four
months alone noticeable successes appeared which were by the
end of the year reflected in an increase in production output of about
50% over last year. Thanks to the obviously improved production
processes, the degree of service could be raised significantly. Also
contributing to this were the investments made in new processing
machinery.
In our new Service Centre in the Chinese city of Tianjin service or-
ders have been completed since the beginning of the year with the
official opening held in March of this year. With this facility, another
important step has been taken in the direction of internationalising
10 S+C Annual Report 2011
S+C Extrusion Tooling Solutions (ETS)
%
Revenue distribution by region
(data shown as %)
South America 5.49
Nordamerika 4.75
Rest of Europe 3.95
Asia 6.85
%
Other countries 1.09
Inland 44.35
Remaining EU countries 33.52
the business. Our worldwide market presence is also documented
by our participation in conferences and trade fairs. Thus in 2012 we
will be participating in Tube, ET‘12 in Miami, Aluminium China and
the leading fair Aluminium Düsseldorf.
In order to emphatically increase results at ETS, growth for the company
is a component part of strategy. The focus has been set for this
by targeted process optimisation and investments in machinery and
human resources. Since the beginning of the current year ETS has
been directly managed by the managing director in charge of the
entire Forging Division. The ETS team will be supplemented by further
key functions in order to conquer additional markets with concentrated
energy. 2012 will be a challenging year for the company.

Business year 2011
At the Group‘s rolling specialist, B&J, the positive trend continued.
Customers from the tube manufacturing, copper wire production
and steel and bright drawn steel fields were on average well occupied
during the year. In particular, the German plants benefited
from the booming export market as well as from a thrust in demand
caused by inventory stockpiling in the trade.
However, there are still great differences in economic growth in the
various European markets. In particular, development of the market
in Great Britain as well as markets in southern and Eastern Europe
were still moderate. Investment willingness in Europe developed
analogously due to capacity utilisation conditions and the mood on
different markets.
Order intake at B&J developed all-in-all in a very encouraging
manner in the first half of the year and was over budget by midyear.
Markets calmed down increasingly during the summer, which
was to some extent seasonally related, and further on was due to
increasing uncertainties brought about by the euro crisis. In the
final quarter, the market picked up somewhat, thus impacting on
incoming orders. All told, the order intake target was not completely
achieved. However, from a positive standpoint the sales target was
exceeded.
Operating results clearly improved on 2010, but were still below
budget. The main cause of this was strong price pressure as a
result of the crisis which had not yet returned to a normal level.
New site
Generally good capacity utilisation shows that the anti-cyclical
investment undertaken in the building moved into at the beginning
of 2010 was justified. The additional order volume booked
could be easily handled. This internal project continued in order
to shorten throughput times, as well as to further improve sup-
6000
5000
4000
3000
2000
1000
0
S+C Bowers & Jones
Annual turnover (T‘GBP) Personnel employed
2006 2007 2008 2009 2010 2011
ply performance, brought resounding success. The objectives set
were exceeded by the year‘s end.
Prospects for 2012
The continuous improvements as well as the high level of service
readiness will further consolidate B&J‘s market position in 2012.
The investments in new machinery, including a large CNC lathe, will
enhance our flexibility in manufacturing extensive roll sets.
Due to the very uneven trend in European sales markets as well as
the uncertainty produced by the euro crisis, we altogether expect
a slight decline in demand for rollers and accessories in 2012.
With reinforced marketing operations in new export markets we
will attempt to position ourselves independent of local and seasonal
effects and to keep sales stable.
At the Tube trade fair in Düsseldorf, S+C Bowers & Jones Ltd. will
present the highlights of its roller business. Additional positive impulses
can be expected from this.
60
50
40
30
20
10
0
2006 2007 2008 2009 2010 2011
S+C Annual Report 2011 11

12 S+C Annual Report 2011
Research and development Services (RdS)
Expansion of the Engineering Centre Electron scanning microscope
With the commissioning of a vertical centrifuge plant, equipment at
the RDS melting engineering centre has been considerably expanded.
With the existing moulds with dimensions from ~700 mm in
diameter and ~ 200 mm in height up to ~ 230 mm in diameter and
~ 350 mm in height can now be centrifuged. The wall thicknesses
have in this case been sized so that samples can be retrieved for
mechanical examination. The high RPM levels of the plant generate
centrifugal forces corresponding at maximum to 250 times the
acceleration of the earth. Thus, despite rotation around the vertical
axis, conditions in horizontal centrifuge plant production can also
be reproduced.
The plant ”supplies“ numerous R&D projects with experimental
materials that were spun under realistic conditions. For other rotation-symmetrical
components, but with a more complex geometry
than tubes, experimental trials are carried out in the plant with the
objective of closely approaching the final contours of the component
whilst casting is still going on. This not only makes significant
savings possible in mechanical processing but also reduces materials
and energy costs: an active contribution to environmental
protection from S+C.
A step deeper into the metal has recently become the message for
materials experts at S+C. With the new electron scanning microscope,
investigations into the smallest detail are possible. By comparison
with the conventional light microscope, not only a higher
enlargement and greater depth sharpness are impressive but the
analytic opportunities are also of great benefit. How are structure
and composition of the individually integrated elements? How have
they changed from heat treatment or through years of plant deployment?
What happens on the surface of the material? Is the
oxide coating tight or incomplete, perhaps even scratched? What
features does a fracture surface display? The materials experts at
RDS have now moved a major step closer to answering all of these
and similar questions. Claim event investigations, materials development
and customer advice can to a greater extent be processed
in-house. The know-how remains with S+C.
In connection with a joint co-ordinated project subsidised by the
Federal Ministry of the Environment and by the Deutsches GeoForschungsZentrum
(GFZ), S+C is carrying out corrosion studies on
metal materials and components in Groß-Schönebeck. The S+C
corrosion bypass integrated into the thermal hydrologic cycle of
the research drilling was put in operation in October 2011 with
preparation of the geothermal fluid through GFZ Potsdam. With
that, the major engineering outsourcing of experimental materials
under real-life conditions with simultaneous measurement of electrochemical
magnitudes (excavation rate, pitting hazards, etc.) by
means of online corrosion monitoring has successfully begun.
For 2012, the focus is on marketing new materials and the transfer
and introduction of new technologies in the production process.
The new material Centralloy ® G 45 Mo will be presented at Achema
2012. Amongst other things, it can also be used in inorganic and
organic chemistry, flue gas cleaning systems, geothermal and marine
engineering (as pipe systems).
At the beginning of this year, the new RDS high temperature
corrosion test stand was commissioned; this test stand allows
tests to be performed at temperatures up to 1250° C in diverse
gas mixtures. As a first step, S+C will be benchmarking external
metal dusting tests in the laboratory.

Talent promotion and continuous recurrent
training
In the 2011 reporting year, the level of personnel at S+C rose by
3%. Worldwide as of 31 December 2011 there were 1,017 employees
at work throughout the corporate group, with 595 of them at
the core location site in Lindlar-Kaiserau.
13 apprentice trainees and joint degree students have started out
at S+C in 2011 at the German site. The training quota in the reporting
year was around 6%. In 2012 ten young people will start their
training and three students will start their careers at S+C.
Health management has been further expanded with new health
courses supplementing the in-house fitness studio opened in
2011. During the reporting year, health days were held on various
subjects of prevention. This is an important building block for us in
employing our workforce responsibly up through retirement age.
At all major sites in the S+C Group, numerous athletic and cultural
events took place in 2011 for employees and their families. This
is important for us in order to strengthen loyalty and identification
with the corporate group. Worldwide feeling of togetherness is for
us, as a family enterprise, an elementary value and is expressly
promoted.
Personnel development as a major item in our mission
statement
In early 2012, the company‘s mission statement was revised and
the subject of global personnel development was thereby given a
special relevance. Subjects like talent promotion, continuous advanced
and recurrent training for staff members and executives are
high up on the agenda of the personnel department. New tools will
in future make the qualitative choice of specialists and executives
easier and serve as a basis of well-founded recognition of potential.
At the corporate group‘s core location site, in the current year an
employee survey will be conducted in order to be able to react to
the differentiated conditions of the labour market and the expectations
of employees.
Global personnel management
Schmidt + Clemens relies on training and talent promotion of
employees
On a regular basis, employees are honoured for their many years of
loyalty to the company, as shown here in Malaysia
Football tournaments, like this one at our Spanish plant, promote a
feeling of togetherness within the ”S+C family”
Under the motto of ”Fit with S+C“ the Company has committed
itself to improving and maintaining the health of its employees
S+C Annual Report 2011 13

Mission statement points the way for
the coming years
At the beginning of the current year we have undertaken an
updating of our mission statement that has been with us since
2007. On the basis of the mission statement‘s four parameters,
we map out the S+C Group‘s road for the coming five years. A
few points on which our action is focused may be cited here by
way of example:
S+C is an independent, owner-managed family enterprise with
more than 130 years of experience. On that basis, the corporate
group stands for short reporting paths and quick decisions.
S+C is a service provider. As early in the Company's history,
we developed more and more from a supplier of semi-finished
products to a developer and producer of ready-to-install components
and systems. It is important for us to further expand
this position in the coming years. The project teams of our Spun
Casting and S+C Extrusion Tooling Solutions GmbH Divisions
have proven that we can manage and purposefully deliver relevant
projects for our customers. By means of corresponding
service agreements with our customers, we enter into long-term
agreements. The new S+C ETS Service Centre in China has
started to operate and will this year be completing its first orders.
But, in that sense, customer proximity is for us as service
providers not just a geographic challenge. Through education
and advance training courses we ensure that our employees
have the corresponding knowledge of the clients‘ processes.
Only in that way can we offer corresponding solutions to our
worldwide constituency of customers.
The companies in the S+C Group are characterised by cooperative
employee management. Constant advanced training
and recurrent training measures for employees and executives
constitute the basis of our success. A clear profile of requirements
for executives will make it possible for us to target the
special needs of the company‘s particular divisions even better
in future.
The S+C Group is a globally operating company. As such we are
tolerant of foreign cultures and exercise the greatest possible
respect! Our employees come from many different nations, as
do our customers and our suppliers as well. Being open to the
world is an important character trait for us.
We look forward every year to being able to congratulate our
employees for their many years of service to the company. In
14 S+C Annual Report 2011
Mission statement
order to continue guaranteeing the loyalty of our employees and
their identification with the company, it is important for us as
an employer to be attractive and family-friendly. We are already
off on the right road with our plant kindergarten and our health
management but we will also initiate additional measures in the
coming years.
At the end of the reporting year, the environmental management
system of the S+C companies at the German core location site
was certified under ISO 14001:2004. That certification is an
expression of the high level of social responsibility we have assumed.
Besides preserving the environment, it is important for
us to be a reliable sponsor of local projects in order to do justice
to our responsibility for a particular region. Athletic sponsoring
and bequests for local charitable and educational institutions
are a matter of course for us. In our management principles, we
give expression to the consideration we take of the interests of
our employees and their families.
We strive to improve our products and processes. As an example,
we will in the coming months optimise our global processes
in the Spun Casting Division. The important thing here,
in particular, is to also adjust production capacity abroad. With
new products, new markets are opening up and thus changed
demands are being placed on worldwide production capacity
as well.
In close co-operation with our specialised departments and with
our Research & Development Division, improvements in the production
processes are constantly being achieved.
It is important to live the mission statement and our management
principles in the coming months and years. In this matter,

the written word should not, however, be seen as a dogma.
Rather that statement and those principles are living works that
Mission Statement
Who are we?
Company purpose
outlook
in the medium term adapt to the global challenges of the markets.
• We are an independent, privately owned family company with over 130 years of tradition
• We manufacture and process high-alloyed stainless steels
• We are a competent partner and service provider for our customers
(operators and manufacturers of machines and systems)
• Our solutions are used in the processes and products of our clients‘ companies all over the world
What do we stand for?
• Independence through family ownership
• Cooperative management and coaching
• Empathy, honesty, responsibility and open and fair communication
• Focus on performance and results
• Respect and tolerance for cultural differences among customers,
suppliers and employees
• Clear focus on service, in order to satisfy internal and external customers
• Loyalty and identifi cation with the company
What do we want?
• Leading market position
• To be an attractive employer
• Continuous development of our employees
• Reinvest the profi ts within the company
• High level of social responsibility for people and the environment
• Family values and highest level of professionalism
How can we achieve this?
Values
Vision 2012 – 2017
Objectives Objectives
• • • We We We secure secure secure our our our future future future through through through permanent permanent permanent innovation innovation innovation and and and focusing focusing focusing on on on service service service
• Strengthening our skills with highly qualifi ed employees
• Personnel development and promotion of talent
• We strive for continuous improvement of our products and processes
• We stand out from the competition through strong customer focus
• Every division achieves an adequate return
S+C Annual Report 2011 15

Schmidt + Clemens GmbH + Co. KG
Kaiserau 2, 51789 Lindlar
Germany
Branches Centrifugal casting
• Petrochemical industry
• Iron-ore direct reduction
Services for petrochemicals
• Metallurgy and material engineering
• Material analysis and examinations
• Metallurgical defect analysis
• Process and material consulting
• Design of tubes and tube systems
• Material welding services
• Convection zones
Production sites
Germany, Spain, Malaysia, Brazil, Czech
Republic, Saudi Arabia
Contact
schleuderguss@schmidt-clemens.de
Phone: +49 2266 92-336
Fax: +49 2266 92-369
S+C Extrusion Tooling Solutions GmbH
Kaiserau 2, 51789 Lindlar
Germany
Branches
• Extrusion industry
ETS services
• Relining
• Subcontract machining
• Videoscopic examinations
• Process consulting
Production site
Germany
Contact
ets@schmidt-clemens.de
Phone: +49 2266 92-492
Fax: +49 2266 92-509
16 S+C Annual Report 2011
Branches Special products
• Separation technology
• Power technology
• Industrial furnace construction
• Marine-/Offshore
• Chemical and petrochemical
other services
• Material and design consulting
• Mechanical machining
• Laboratory services
• Welding
Production site
Germany
Contact
sp@schmidt-clemens.de
Phone: +49 2266 92-507
Fax: +49 2266 92-538
S+C Märker GmbH
Kaiserau 2, 51789 Lindlar
Germany
Corrosion-resistant applications
• Pump manufacturing
• Marine technology
• Power technology
• Chemicals industry
• Plant and machine construction
Production site
Germany
Contact
maerker@schmidt-clemens.de
Phone: +49 2266 92-211
Fax: +49 2266 92-477
S+C Bowers & Jones Ltd.
Registered Branch Germany
Kaiserau 2, 51789 Lindlar
Germany
Branches
• Tube, profile and copper wire
manufacturing
Production site
United Kingdom
Contact
rolls@schmidt-clemens.de
Phone: +49 2266 92-417
Fax: +49 2266 92-420
www.schmidt-clemens.com
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