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1. Presentation of UNIMERCO

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UNIMERCO Inc., USA

UNIMERCO Ltd., UK UNIMERCO AB, Sweden

UNIMERCO Technologies, China

1. UNIMERCO – a tooling company

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1. Group structure

Manufacturing, sales & service companies

Sales & service companies

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1. Main product areas

Guidance and optimisation

Trade in standard tools

Customisedproduction

Maintenance

Activities

Tooling

Cutting tools Measuring tools Fastening tools

Brand: UM DANDIA®

Brand: RE•NEW‐®

Guidance and optimisation

Trade in standard tools Maintenance

Fastening

Brand:

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Consultancy, trading, production and services, primarily for:

Industrial end‐users Distributors and retailers

1. Competences and business concept

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1. Focus segments, Tooling

Fluid power

Automotive Aerospace General machining

Power generation / energy Oil, gas, shipping

Food processing Furniture Windows, doors, kitchen

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1. Product portfolio, Fastening

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1. Focus segments, Fastening

Construction Distribution: builders merchants

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1. UNIMERCOCompanies in Europe, Asia and USA.

Grinding and production facilities in Denmark, UK, USA and China.

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1. UNIMERCO GROUP

• Where do we operate? Europe, North America and Asia

• No. of production sites: 4

• No. of sales and technical support offices: 14

• No of employees: 550 (650)

• Established in 1964 in Denmark

• Ownership: owned by employees and management

• Workplace ranking: Among the 10 best workplaces in Denmark 2003‐2009

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• Internal tests• Customer tests

• Equipment for wet and TQM machining• Own measuring and calibration labs

1. UNIMERCO test facilities

Production Measuring

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1. Customer service

• Sales engineers• Application engineers (partly customer‐paid)• Optimisation technicians from Tool Choice organisation 

(partly customer‐paid)

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1. ’The roofed village’• Open space environment

• Inspired by small, nice villages with an environment characterised by– Knowledge of individual skills and function– Help, assistance and support– Care and willingness to help each other

• All UNIMERCO companies are built as ’roofed villages’– One room without partitions– Overall view and understanding– Ease of communication

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Open space environment

• A unique and innovative environment for development

Customer experience of the sales department

Design

Test

Development

Production

1. UNIMERCO GROUP

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1. UNIMERCO GROUPOwnership: owned by management and employees

• All employees worldwide are offered to become joint owners through the purchase of shares

• 75% of all employees are shareholders in UNIMERCO

• Benefits• a distribution of ownership, encouraging motivation and involvement• a continuous generational change• a unique possibility to generate personal savings for the employees

Distribution of ownership, UNIMERCO GROUP A/S 30.09.2010

Management, department managers, Board (42%) Non‐managers (40.7%)

Other shareholders (not employees) (5.9%) Unimerco Finance (11,4%)

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1. UNIMERCO GROUP

Level of education in the group

12%: Bachelor and Master level

18%: Technicians with further education

70%: Skilled

100%

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1. The future

• Step by step towards global distribution with service and production back‐up.

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2. Handling the crisis

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2. Our model for handling the crisis

Holding on to the basic values

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UNIMERCO’s crisis management model 

1. Organisational understanding and acceptance of the situation

2. Cost adjustments so that profitability is achieved at any given level of turnover 

3. Sales offensives and increasing our customer and market shares 

4. Innovation and product development 

5. Process optimisation: greater efficiency 

6. Continuation of the long‐term strategies / the globalisation process 

7. Enhanced liquidity 

8. Trimmed organisation 

2. Our model for handling the crisis

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3. Targets and results

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3. Targets 2010/11 – 2013/14UNIMERCO GROUP

Total

Income Statement Actual Estimate Target(1.000 DKK)

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Net Sales 747.499 547.735 535.924 601.194 700.630 786.914 890.031

Gross Profit 441.921 312.844 327.011 367.190 419.974 466.297 516.428Gross Margin 59,1% 57,1% 61,0% 61,1% 59,9% 59,3% 58,0%

Cost Total -346.551 -320.086 -250.907 -268.681 -288.650 -303.451 -318.494

EBITDA 95.370 -7.242 76.104 98.510 131.325 162.846 197.934EBITDA % 12,8% -1,3% 14,2% 16,4% 18,7% 20,7% 22,2%

EBIT 47.276 -50.385 38.493 64.337 99.438 132.932 169.873EBIT % 6,3% -9,2% 7,2% 10,7% 14,2% 16,9% 19,1%

EBT 48.161 -53.316 38.886 60.863 96.707 130.601 169.212

Tax -15.371 5.059 -9.722 -18.259 -29.012 -39.180 -50.764

Net Profit 32.790 -48.257 29.165 42.604 67.695 91.421 118.448

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3. Cost development

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EBT, Euro (millions)

6,4

-7,2

5,2

11,6

-10

-5

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5

10

15

2007/08 2008/09 2009/10 2010/11

3. Results – before and after the financial crisis

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4. History and visions

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1964 Established as a commercial business, trading with fastening products

1970 Expands product range with cutting tools for the woodworking industry

1972 Regrinding service of cutting tools for the woodworking industry

1974 Tools for the metal industry

1976‐77 Profit sharing and employee shares

1985 Own production of customised cutting tools

4. Milestones

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1991 First company formation abroad (Sweden)

1995‐98 Companies in USA, Norway and UK

2000 Enters the automotive industry

2005 Enters the aerospace industry 

2005 Company in China

2011 Change of ownership to Kyocera Group, Japan

4. Milestones

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• To make the best tool solutions

• To be the most competitive company on the price/quality/performance/service package

• To be the customers’ preferred supplier

• To continue being a morally, ethically and environmentally well‐reputed company

• To be a good and developing workplace caring about the company as a whole, as well as all the individuals

• To gradually achieve global distribution with service and production back‐up

• Kyocera Cutting Tools to be one of the biggest global players on cutting tools

4. Visions of Kyocera Unimerco

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