Grundfos mission, vision andcompany values

One of the main reasons why Grundfos isnow one of the world's most successfulleading manufacturers of high-qualitypumps is the high degree of independenceand responsibility set by the founder of theGrundfos Group.

To this day, these principles and valuesare at the core of the Poul Due JensenFoundation's mission statement. And wecontinue to work according to the prin-ciples set down in this mission statement.The main purpose of the Foundation, whichowns the Group, is to develop and furtherexpand the Group, primarily by reinvestingthe equity capital from our pump com-panies.

The Board of Directors of the Poul DueJensen Foundation also has another goal:That the employees of the Grundfos Groupthrive and are satisfied with their jobs. Thisis because it is important that people leadgood lives as this contributes to their com-mitment and motivation which are vital tothe Group's continued growth and exist-ence. As employees of the Group, weshould feel that we are joint-owners of thissuccess story and that we are involved inits continued development.

This leaflet is an attempt by Grundfosmanagement to live up to that part of ourresponsibility which entails communicatingwhat we want to achieve and what we be-lieve in. That is, to explain and convey the

visions we have, the values and basicattitudes which are important to us, and thebusiness principles with which we work.And to communicate all this in a way that isunderstandable to everyone whose job is totranslate these ideas into practical actionsin their daily work.

We expect that you, as a colleague andemployee, are loyal to these attitudes andvalues and that you work for our mutualgoals, strategies and action plans. We alsoexpect that you are responsible, take theinitiative and that you help your colleaguesto succeed ... and finally that you makeyour contribution to change and improve-ments.

It is obvious that no one can live up tothese expectations unless they know whatthey are - and understand and accept theattitudes, values and strategies upon whichthe Grundfos Group is built.

I therefore hope that you will find thecontents of this leaflet easy to understandand worthwhile. I also hope that you willcome forward with your ideas and criticismif you discover something which you feeldoes not properly express the way we thinkthings should be.

Niels Due JensenGroup President

Dear colleague

Grundfos is one of the world's leadingpump manufacturers.

It is our mission - the basis of ourexistence - to successfully develop, produce

and sell high-quality pumps and pumpingsystems world-wide, contributing to a

better quality of life and a healthyenvironment.

The Mission

Our vision - the future we arestriving for - is that:

- Our customers acknowledge us as theleading producer and partner when it comes

to high-quality pumps - both in terms ofperformance and the environment.

- Our employees thrive and demonstratetheir satisfaction because their jobs and

working conditions provide them with great opportunitiesfor professional and personal growth and development.

In addition, their satisfaction stems from agood work environment that takes the individual's wishes and

qualifications into consideration.

- The rest of society recognises and regards Grundfoswith respect as a result of our responsible

conduct in relation to the laws of our society, theprinciples of democracy, local traditions and the environment

- as well as our relations to the people whose livesand circumstances we touch.

The Vision

Sustainable development is a keyconcept at Grundfos. It is vital thatour pumps demonstrate respect forthe environment, especially interms of energy consumption anduse of materials.

It is also vital to create andmaintain a healthy and safe workenvironment so that Grundfosremains an attractive workplacefor present and future competentemployees.

Finally, it is vital that our produc-tion facilities are organised so thatthey place as little strain as possibleon our surroundings and the

environment. In general, we will doeverything possible to distance our-selves from the "buy and throwaway" mentality.

The overall goal is that when thisgeneration delivers Planet Earth tothe next generation, it should be acleaner and more energising placethan the place which we inherited.

Sustainable Development

Our actions affect the lives ofmany people, on a daily basis.These include our 10,000 employeesall over the world - as well as themany millions of people who havetheir water supplied and wastewater removed by Grundfos pumps.

In principle, Grundfos will do busi-ness with customers all over theworld because we believe that ourproducts meet the most basic, fun-damental needs of humanity.Respect for human rights, however,is an important issue. Consequentlywe will always observe and respectany sanctions that the world com-munity and the United Nations im-pose on individual nations for notrespecting democratic and humanrights.

We will do business with duerespect to proper business proce-dures and ethical behaviour.

Regarding our own employees, wewill strive to treat them as we wouldtreat family members and goodfriends. Our employees are not justresources like machinery, buildingsand capital. Our employees arepeople - human beings - with ideas,a sense of commitment, needs,desires, a sense of responsibility,skills and competences and - some-times - problems.

When people put forth ideas,wishes and needs, we will listen.When we meet a sense of commit-ment, responsibility and skills, wewill provide opportunities. When wediscover problems, we will offerhelp - to the extent that the work-place is able to help solve or lessenthe problem.

Focus on People

Grundfos is an international Groupwith a global mindset. The Grouphas production facilities and sellspumps in every corner of the world.We already have sales and servicecompanies in most of the world'smost important pump markets. Andwe wish to continue to increase ourpresence in new markets.

We have organised ourselves inthis way for two reasons: Firstly,because there is a need for high-quality pumps all over the world -and secondly because the need forconsultancy service and service ingeneral differs from country tocountry. That is why we also custo-mise our solutions to meet localrequirements. Moreover, we haveestablished ourselves all over theworld because we believe that it is

impossible to operate and managea global organisation from one cen-tralised point.

We focus on regional productionfacilities and a local set-up becausewe want to demonstrate our respectfor local values, culture, ways ofdoing business and social condi-tions.

We cannot accomplish this byforcing Danish culture on all ourcompanies in other countries - oron their communities. We can onlydo so by giving maximum freedomto the local people. And we do thisin every situation by respecting bothinternational and local standards,regulations and legislation whereverwe operate.

Global Thinking

To deserve the recognition andrespect that we seek, we must domore than do things properly; wemust show what we do.

This means that people must findus to be a credible and trustworthycompany. That is why we must havean active information policy andsystematically tell the relevant inter-est groups what we do, and whatwe are thinking of doing - and why.

We must also be an active andresponsible participant in the publicdebate.

At all times, we strive to actaccording to the principle that ouremployees always come first. Wewill never communicate something

to the outside world before ouremployees are fully informed. Inaddition, we will continually strive tocommunicate honestly about condi-tions and circumstances, both thosethat are good and those that areless good.

We shall be open and honest.People who contact us shall bemade to feel welcome. Besides nor-mal business secrets, we have no-thing to hide. On the contrary, it is inour best interest that the world atlarge should know our attitudes, ouractions and us. In addition, we areinterested in dialogue and in listen-ing to others so that we can learnand understand how the worldregards us - including what otherpeople think we can do better.

Open and Credible Conduct

The Grundfos Group is andalways will be growth-oriented andwe continually strive to maintain ourposition as one of the world's lead-ing and most successful manufac-turers of pumps for water supply,heating and waste water systems.

We want to be a market leader inpump production and we strive toestablish production facilities in orclose to all the largest markets. Wewill continue to produce our keyproducts and components by usingthe world's most advanced produc-tion technology.

That is why we continually supportresearch into new materials and processes in order to introduce newand innovative pumps and pump

systems that can meet the needand demand for effective, safe andenergy-efficient systems - and liveup to customer expectations.

It is important for us that ourpumps are user-friendly and thatthey are so flexible that they can beused everywhere. That is why weinvest in a wide range of high-quality pumps.

It should be common knowledgeamong customers that Grundfospumps are always synonymous withquality and durability so that it paysto invest in Grundfos products.

Leadership

When it comes to pumps andpumping systems our customersshall perceive us as a reliable long-term partner - and not just a sup-plier.

Customer satisfaction is one ofour most crucial goals and successcriteria. This means that we placegreat emphasis on advising cus-tomers so that they receive the pro-duct which meets their exact needs- neither more nor less.

This means that we place greatemphasis on service because wetake responsibility for our products -including the responsibility of train-ing our customers and sharingknowledge and experience with oursuppliers and major accounts.

It also means that we help cus-tomers discard pumps once theyhave served their purpose.

That is why we place greatemphasis on being in close geo-graphical proximity to our cus-tomers so that we can provide fastassistance. In those cases wheredistances are great, we enter intoagreements with local service orga-nisations and ensure that they havethe expertise and tools necessaryto provide services which are on apar with those we provide.

Partnership

Grundfos will always behave in aresponsible manner - both in busi-ness and in society in general.

Our growth and presence shallharmonise with the environmentbecause our products and the saleof these products shall not just befor our own success, but shall alsobenefit the societies where they areused.

This means that our growth shallbe in tune with the local commu-nities of which we are a part - andour products shall have a utilityvalue that can be demonstrated inthe communities in which they aresold and installed.

We will explore new methods to protect the environment - and wewill use our influence to encouragecustomers, suppliers and otherinterest groups to think of environ-ment-friendly solutions because themaximum environmental benefit is

only achieved when all the partiesinvolved work together for this pur-pose.

We are convinced that as a com-pany we have a social responsibilitytowards both our employees andthe local communities. Our socialresponsibility is manifested throughconcrete initiatives in the Group'sindividual companies. A goodexample of this is our decision toemploy people with reduced workcapabilities, under flexible workingconditions.

In business we will strive to be perceived as both fair and correct -by customers, suppliers and com-petitors.

Finally, we will focus on what weare good at. This means that ourprimary income shall be obtainedfrom our core business, namely,developing, producing and sellingpumps and pump systems.

Responsibility

The Grundfos Group is a private com-pany and the main shareholder is the PoulDue Jensen Foundation. The purpose ofthe Foundation is to develop and furtherexpand the Group - based on a healthyfinancial foundation - mainly by reinvestingthe Group's own capital from the pumpcompanies. As a result, the Group willremain an independent company in accord-ance with the wishes of its founder.

A high profit level is a means to theGroup's continued existence and develop-ment - not a goal in itself.

Independence

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