Secure your buSineSS

Find more financial information on:www.rettig.fi/annual-report

2005 2006 2007 2008Balance sheet total (meur) 764 843 824 751Net debt (meur) 124 210 192 171Equity ratio (%) 57 51 50 52

EBITDA (meur) 74 114 91 85Gross investiments (meur) 52 143 56 20

Releasethepressure

“our strong balance sheet and predictability have proven attractive to our customers…”

Markus Lengauer, ceo, rettig iccFind more financial information on:www.rettig.fi/annual-report

Thisisatimetostaycool.Theworldwideeconomicsituationhascertainlyaffectedtheheat-emittingsolutionsmarketalso.Manyplayershavebeenhurtbythedramaticdownturninhousingstart-upsorthemanyrenovation-projectsthathavebeenpostponed.Thishashadanimpactoneverybusinesspartnerinthevaluechain,includingwholesalersandinstallers.

Clearly,manycompaniesarefeelingthepressure.Somehavetriedearliertogainmarketsharebyincreasingtheirdiscounts,andnowareconfrontedwithtightermargins.Othersbecamehighlyleveragedtoexpandoperations,andnowmustserviceheavydebtwithshrinkingrevenues.

Our situation is markedly different.Aspartofafinanciallystable,family-ownedorganisation,wearepreparedtonotjustweatherthestormbuttofurtherconsolidateourpositionasaleader.Ourhealthyfinancialpositionenablesustomakestrategicacquisitionsandinvestments.Includingnewproductionfacilities,likeourplantinTurkey,thatweboughtend2008.

Ourindependentfinancialstatusisastrenghtthatenablesustorealizeourambitions.

Thisfinancialstrengthiscomplementedbyourcommitmenttothelong-termsuccessofourbusinesspartners.Acommitmentthatknowsmanydifferentforms.Asavaluablepartner,wewillalwayshelpyoutosecureyourbusiness,especiallyintimeswhenthepressureishigh.

Whereverthemarket,we’refocusedonprovidingquality,heat-emittingsolutionsthatmeetthespecificneedsofthatmarket.

Ourpresence,andoursuccess,isglobal.Infact,we’rerepresentedinmorethan50countriesworldwide,andhavemanufacturingfacilitiesin17countries.Wearethelargestindependentheatemitterbrandintheworld.Morethan9millionradiatorsareproducedeveryyear.

RadsonispartoftheRettigICC(IndoorClimateComfort)divisionthatisrecognizedasthenumber1supplierofsteelpanelradiatorsinEurope.Wealsohaveastrongpositioninbathroomanddecorativeradiators,aswellasunderfloorheating.

Thelong-termstrategyofthecompanyistomaintainthisnumber1position,andtoimproveuponitincrementally.Bydoingso,wehelpensureasolidfoundationforgrowthforallofourpartners.

Toreachthisgoal,theimportanceofadedicatedsalesforceineachcountrycannotbeoverestimated.Localexpertiseprovidestherightinputtodeliverproductsthatmeettheneedsofinstallersandend-users.Wealsocontinuouslyupdateproductmaterialsonacountry-by-countrybasis,bothonwebsitesandinliterature.

Theseeffortsallhelptobuilddemandforourproducts.

Wecansupportyoursaleseverywhere

“We all benefit of being part of a strong european brand and by adding local experience and knowledge we add value to our sales.”

Darko rajkovic, Sales & Marketing Director balkan countries

OverthelastseveralyearswehavecommittedsignificantresourcestothemergersoffacilitiesthroughoutEurope,toimproveourlogisticalefficiencies.

Thesestrategicallylocatedsitesensureasteady,reliablesupplyofproductstomeetdemandinlocalterritories.WehavealsomadesignificantinvestmentsinimprovingthesefacilitieswithITandproductiontechnology.Thishasenhanced,simplifiedandintegratedourentireEuropeanbusinessprocess.

Theseimprovementsbenefitourbusinesspartnersinmanyways.Itensuresmorereliabledeliveryofproducts.Oneexample:Ournewpanelplatformconceptenablesaseamlesscontinuationofproductionfromoneplanttoanother.Soifthereis,bychance,abreakdowninpressingatoneplantinEurope,identicalpanelscanbepressedatanyofourotherlocations.Theproductsthencanbeimmediatelytransferredtotheaffectedlocationforassembly,paintingandpackaging.Thelevelofservicetothecustomerisunaffected.

Ourproductionefficiencyalsohelpstostreamlineyourlogisticsandwilldecreasethecostsofwarehousing.

Ourdeliveryperformanceisupto98%orevenmore.Ontime-infill(OTIF),withleadtimesoflessthan5days.Youcanexpectthislevelofefficiencyineverycountryinwhichweoperate.

We’reorganisedtohelpyourunamoreefficientoperation

“We value on-time delivery as our customers depend on us to help them to manage their working capital efficiently.”

Jos bongers, chief operations officer, rettig icc

WehelpyougrowyourbusinessbyfocusingonimprovingoursWealwaysfocusonimprovingresults.Certainly,wedothisbyexpandingcapacity(whenappropriate)andimprovingourefficiencies.

Butwealsoneverlosesightoftheimportanceofraisingawarenessofourbrandsandourbusiness.Forthatweyearlyinvest10%ofourturnoverinmarketing,salesandefficientmarketcommunications.Twiceeveryyearwelaunchmajor,pan-Europeancampaigns,supportedbyongoingmarketactivities.

Theresultshavebeenconsistentlypositive.We’veincreasedmarketsharesignificantlyinmanymarkets,aswellasourbrandawareness.Infact,weenjoyanumberonepositionintopofmindawarenessinmanycountries.Ourbrandpositionstandsforinnovation,inspirationandquality.Radsonproductsandsolutionsnotonlyprovidewarmth,theyalsoaddadimensiontoindividuallifestyles.Theymeettheever-changingneedsofinstallersandend-usersineverymarket.

Thisbrandpositioniscontinuallyreinforcedbyourmarketingcommunications,bothonlineandoffline.Onaregularbasis,wemonitortheneedsofthemarketandrespondwithnewmarketingmaterialinallmediatofurtherstrengthenourpositions.

“our open mindset and knowledge of the localmarket are the main factors of our success. We allfeel ourselves truly responsible for our customers business successes.”

elo Dhaene, brand commercial Director, Purmo radson

Ultimately,ourreputationandcontinuedsuccessrestswiththeintegrityofourproducts.Quality,therefore,isthecornerstoneofanorganisationthathasbeenactiveintheradiatorindustryformorethan30years.

Ensuringthisquality,however,callsforsignificantinvestments.

AgoodexampleofourcommitmentisourrecentinvestmentsinnewfacilitiesinBelgium,PolandandtheUK.IntotalRettigGroupinvested250millioneurooverthepastfouryearsinbusinessthey’vecommittedto.Andthey’llcontinuedoingso.Investmentsthatincreasequality,whileenhancingflexibility,improvedproductavailabilityandon-timedeliveryatreducedcostlevels.

ExpandingfacilitiesthroughoutEuropealsoreflectsourdedicationtolocalmarkets.AsaleadingEuropeancompany,Radsondemonstratesitscommitmenttoitsemployees,tosocialsecurityandtomaintainingahighqualityoflife.

Thisfocusonqualitycertainlyappliestoallofourradiators.EachoneisdesignedandtestedtomakesureitcanwithstandpressureswellabovetherelevantEuropeanandinternationalpressurerequirements.Allourradiatorsareguaranteedtotakethestrain.Eachandeveryoneisbackedwitha10-yearguarantee,anindustrystandard.

Qualityprovidesasecurefoundationthatcanhelpreleasepressureinturbulenttimes.Installersandend-users,whenmakingachoice,willchooseproductsmadeforthelongterm.Youcanpromisetoyourcustomersthebest.Andwewilldeliver.

Built-inqualitythathelpsyoukeepyourpromises

“All our radiators conform to the most stringent quality standards and carry a multitude of quality and approval seals.”

claudius Gramse, brand Development Manager, Purmo radson

Whentimesgetturbulent,it’sgoodtoknowthatyourbusinesspartnerisstableandsufficientlyfundedtowithstandthestrain.RadsonispartoftheRettigGroup,afamily-ownedbusinessthathasover200yearsofhistoryandexperience.

Rettig’sbalancesheetisstrongandthecompanycontinuestoenjoyasteadycashflow.Furthermore,ithasalong-standingrelationshipwithbankingpartnersandhassufficientcreditlinesavailable,ifnecessary.Thisenablesustocontinuefinancingoperationsandgivesustheopportunitytoexpandouractivities,withoutbeingoverlyinfluencedbyanincreasinglyrisk-adversecreditmarket.

Anothercontributingfactortooursolidpositionisthecompany’sfocusonlong-termstrategyinsteadofshort-termdecisions.Beingwellfundedandfinanciallystable,ofcourse,givesusthefreedomtothinklongterm.

Clearly,weareabletosupportourbusinesspartners,whateverthemarketconditionmaybe.

We’repreparedtohelpsecureyourbusiness

“i am convinced that the turbulence will also bring business opportunities to companies, such as rettig, that have a healthy financial position.”

bjarne Mitts, ceo, rettig Group Ltd

We’llhelpyoutogetthere

“The size of our company, the strength of our brands and their market position linked to the financial stability of the rettig Group will helps us overcome upcoming challenges.”

Tomasz Tarabura, brand Director, Purmo radson

Actually,nowistheidealtimetomakegreatthingshappen.

Tochangeandtobuildabrighterfuturetogether.Yes,theseareturbulenttimes.ButthesearealsotimestostrengthenourpartnershipandtocreatenewopportunitiesforallpartnersworkingwithRadson.AtRadsonwefullyappreciatethemagnitudeofthecurrentcrisisanditseffectonbusinessworldwide.

Asacompanywearepreparednotjusttoweatherthestorm,buttocomeoutstrongerandbetterpositionedthanever.Andwe’rereadytohelpourbusinesspartnersenjoythesamelevelofsuccess.

Firstandforemost,youcanexpectthefreedomthatcomesfromfinancialstability.Wehavetheresources,includingcashreservesandsufficientlinesofcredit,tofinancecurrentoperationsandtoexpandcautiouslyintonew,promisingmarkets.Wealsohavearangeofqualityproductsthatmeetthespecificneedsofeachmarketweserve.Ournetworkofsalesandproductionfacilitiesmeetcustomerneedsineachspecificmarket.Andwearecommittedtothemarketingactivitiestoraiseawarenessanddemandinthosemarkets.

Inshort,Radsonhastherightcombinationofresources,theorganisation,theproductsandthestrategicvisiontohelpyoureachyourbusinessgoals.Let’scontinuebuildingtogetheronaprofitablefutureforallofus.

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“We see rettig icc as an investment for the future. our family therefore is committed to a strategy of long term development. in that perspective we are prepared to take whatever steps necessary to ensure the health of our businesses. For generations to come.”

cyril von rettig, chairman, rettig Group Ltd

Radson

Vogelsancklaan 250, B-3520 Zonhoven

T +32(0)11 81 31 41

info@radson.be

www.radson.com