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Annual Report 2016

Goals and strategies

The overriding goal of the technotrans Group is to increase the value of the company in the long term. The corporate strategy is geared towards steadily expanding the current market position as a specialist for liquid technology (fluid management and thermal management). To achieve that goal, technotrans concentrates here on its core skills while focusing investment on measures that enable it to expand its product range further and gain a foothold in new areas of application for its technologies. Organic growth is generated through partnerships in the areas where its core skills are called for. Targeted acquisitions are another driver of growth. technotrans concentrates to a very large extent on niche markets where it is possible to achieve a market share in the region of 50 percent or more, taking into account the scale of its own business and the available resources. This is the key to being able to capitalise on economies of scale in offering our customers both technology and prices that are benchmarks. technotrans is well-placed to realise such goals thanks to its clear focus on system partnerships with major industrial clients (OEM) which operate worldwide and expect their suppliers to have a similar organisation.

Profitable growth will remain the focus of technotrans’ strategic development. The company has set itself the goal of growing faster than the market. By 2018 it aims to increase consolidated revenue to around € 200 million. In pursuit of that goal, the new growth markets of the group in particular are to deliver overproportional rises in revenue over the coming years. The Board of Management seeks a steady improvement in the return on sales (EBIT margin).

A sustained ability to distribute dividends and sound financing based on a high equity ratio also feature in the group’s overall goal.

We have defined five value levers for our strategic development.

Increasing customer benefit: New, innovative products are being developed. Our product portfolio and processes are continually being revised and are evolving in tandem with changing customer requirements. As a systems supplier to the printing industry, technotrans has held a leading position in its product areas for many years. Based on our close ties with the manufacturers of both offset and digital and flexographic printing presses, along with our unique expertise, we intend to consolidate our role as technology partner in that industry and – wherever possible – build on it.

The growth strategy’s implementation is supported by the corporate structure in that both the three business units – in which the core skills are concentrated – and the international sales and service locations worldwide are given growth targets to realise.

Broadening the business base: By addressing a variety of markets, the group is not as heavily dependent on the business cycles of individual industries. This enables it to absorb fluctuations more easily, giving it greater stability. technotrans will also continue to extend its business base in future. This entails both the further penetration of established markets and entry into new industries and application fields, making use of technotrans’ core skills.
In order to achieve its growth targets, it has been developing and expanding new applications outside the printing industry for a number of years. The focus of the activities that are bracketed together in a separate sales area is on using core skills in selected industries with long-term growth potential.

As well as organically accessing new markets, technotrans’ growth strategy involves the acquisition of companies with core skills that specifically complement those present in every area of the group. Acquisitions are fundamentally structured in such a way that they directly deliver increased value added. Wherever possible and advisable, we bind the holders of critical expertise to the company in the longer term.

Quality: Quality, alongside economic efficiency, is a core value of technotrans products. We are continually improving quality management in order to supply customers with reliable equipment swiftly, often after only a short time in development. technotrans also regards itself as a quality leader within the field of competitors.

Deepening integration: Across the group, capacities and potential are being integrated to put them to optimum effect. The aim is to create long-term value added in every area of the company. To generate even greater efficiency, we will advance the projects designed to develop the group and further harmonise processes and structures. technotrans’ strategies include the systematic expansion of shared infrastructures and cross-disciplinary functions, for instance in procurement or the international sales and service network.

Personnel development: The specialist and social expertise of the company’s employees is its most valuable asset. The aim is to attract good employees, bind them into the company long-term and assure systematic personnel development.