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Strategy: what we want to achieve in environmental technology

We have set ourselves the objective of becoming the most innovative and leading provider of cables and cable systems for green technology. This objective now constitutes a key element of our long-term corporate and growth strategy.

We want to continue to grow at a disproportionately strong pace in this segment and to expand what is in parts already our leading position in targeted environmental technology markets. This means that we are directing our portfolio of products and services at six key markets for environmental technologies that have, based on scientific studies, been identified as dynamic areas of the future.

Principal environmental technology markets

Examples of applications for LEONI products

1.) Environmentally friendly energy generation and storage

  • Solar energy (photovoltaic and solar thermal plants)
  • Bioenergy (biogas and biomass power plants)
  • Hydro power (tidal and pumped storage power plants)

2.) Energy efficiency

  • Energy consumption-lowering measurement and control technology

  • Energy efficient automotive and drive technology

3.) Efficiency of raw and other materials

  • Measuring and control technology to avoid scrap
  • Lightweight materials and components

4.) Recycling management

  • Waste separation and disposal plants
  • Recycling (plastics recycling plants)

5.) Sustainable water management

  • Water treatment, distribution, supply and cleaning plants
  • Household appliances with high water consumption efficiency

6.) Sustainable mobility

  • Vehicles with hybrid, electric and fuel cell power
  • Charging cables and infrastructure
  • Rolling stock engineering

The market for environmental technologies is de facto one of the global economy’s growth drivers. With a global market worth nearly EUR 1.6 billion in 2010, environmental technology is already found in the top tier of key worldwide industries such as the automotive, electrical engineering and mechanical engineering sectors. The global market is projected, at annual growth rates of more than 6 percent, to roughly double in size by 2020.

We deem our potential in the already established and the still to be developed green technology sub-markets to be correspondingly good. Our performance in the recent past has been highly promising: whereas our sales of green products and technologies amounted to EUR 108.2 million in fiscal 2009, this figure already came to as much as EUR 168.1 million in 2010. This means that, at a rate of about 55 percent, our business in the environmental technology sector grew significantly more strongly than our consolidated sales.

Green sales by application

Annual sales in € millions

2011

2012

Change

WSD

87.2

98.9

113 %

WCS

135.9

123.7

–9 %

Group

223.1

222.6

0 %

We define “green sales” transparently according to the following, application-focused criteria: In the Wiring Systems Division these include income generated in the markets for electromobility or involving emission-reducing technologies, for example by means of weight and cross section-oriented wiring system optimisation, specific engine cable harnesses or sensor cable harnesses for energy recovery systems. In the Wire & Cable Solutions Division this definition encompasses only such products that are used in environmentally friendly target markets such as the recycling industry, rolling stock and the solar industry.