manroland Outlines Standalone Strategy for Future Success

2. Integration of the business activities for the sheetfed and web offset sector:

• Consolidation of the business units for small newspaper presses (until now at the Plauen site) and large newspaper presses at the Augsburg site.

• Centralization of electronic activities.

• The foundry in Offenbach will provide both business sectors with cast parts.

• Concentration of the central functions for the Group at the Augsburg site.

3. Establishment of a new Technical and Industrial Services business sector consisting of about 300 employees who will focus on the following activities:

• Industrial consultation

• Subcontracting of highly qualified technical experts.

The planned measures will likely lead to reductions in staffing levels by 500, mainly in administration. As a result, the number of employees will drop to about 6,000 by the end of 2012. This includes previously announced job losses, measures for semi-retirement, and natural employment fluctuations. Our objective is to keep job losses at a socially acceptable level. Talks with labor representatives have been entered into.

“These measures are oriented towards an order volume of 1.4 billion euros in our core business, which is around 70 percent of the high of 2007. Greater integration of our business activities and implementation of consistent processes will make us leaner, more efficient, and more effective in the future. The two new business sectors, Industrial Production as well as Technical and Industrial Services, will also open up new business opportunities for us,” states Gerd Finkbeiner.

All of these measures are planned for completion by mid 2012. The associated savings are estimated at 50 million euros annually, and will be fully realized from 2013 onwards.

Future growth as an offshoot of the core business
Overall, the intended structural changes will strengthen the core business and thus go hand in hand with the new concentration on future markets and the services sector.