PRESS KIT 2015 Rossi Group Summary A worldwide leader... 2 Customer s Applications & Industry Segments... 3 Products & Services... 4 Sales & Distribution... 5 Information Communications Technology... 6 Continuous Innovation... 6 Quality System... 7 Human Resources... 7 History... 7 Summary... 10 Rossi Spa. Marketing Services Contact: Claudio Caselli Via Emilia Ovest n. 915/A 41123 Modena Phone: +39 059 330288 Fax: +39 059 827774 E-mail: claudio.caselli@rossi-group.com Website: www.rossi-group.com 1
Rossi Group A worldwide leader Based in Modena (Italy), Rossi Group is one of the largest industrial groups for the production and sales of gear reducers, gearmotors and standard and electric brake motors. In terms of sales, Rossi is the third manufacturer in Italy, but it is anyhow recognized as the leader in terms of quality and it is able to compete with international competitors in the high quality sector of the market, particularly against the German world leader producers. The Group has won an important role during the years ranking amongst the leading ten producers in Europe. In fact, in the sector of gear reducers, Rossi was the first Italian company and the second European company to get the Quality System Certification ISO9001 (in 1992). Rossi has 3 manufacturing plants in Italy: 2 in Modena and 1 in Lecce (Puglia), 10 assembling centers and 15 affiliated companies. Rossi Modena HQs is the center for Sales & Marketing, F&A and R&D for the whole group. Habasit Group Since July 2009, Rossi is part of Habasit Group (CH), the world market leader for power transmission and conveyor belts. Thanks to the new ownership, to the financial strength and to the global organization of the group, Rossi is in the best conditions to further expand and consolidate its position in the global market. Habasit, founded in 1946, has more than 3300 employees worldwide, it operates 16 state-of-the-art production facilities that, combined with an extensive network of more than 30 subsidiaries and distributors around the world, guarantee that their customers receive their superior products on time. Committed to excellence in all aspects and science-based innovation, Rossi philosophy is 100% customer-oriented: Rossi does not offer just products, but complete, reliable and high innovative solutions for all application fields. Rossi believes that the capability to excel depends on integrity, ethical behavior, openness, knowledge, imagination, competence and teamwork. Trend of consolidated turnover Year Euro (Millions) 2007 152 2008 169 2009 114 2010 112 2011 122 2012 124 2013 130 2014 131 2
Customer s Applications & Industry Segments Rossi is selling its product to companies of different size (small to multinational companies) with orders of one to several thousand items, with few or many different part numbers. The possibility to sell Rossi products for many different applications and for customers various industries represents an excellent opportunity to differentiate and reduce risks coming from fluctuations of the markets, especially during uncertain times. This situation requires high levels of flexibility in production, both in terms of volumes and of the mix of products to be manufactured, while maintaining short delivery times. In order to be more effective with the support given to its customers, Rossi has organized its sales force in key account managers and industry segment managers, who guarantee that the customers always find in Rossi the best level of understanding of their specific technical needs. The products of the Modena Group are used in: food industry (belt and screw feeders and batchers, centrifuges, screws, bucket elevators, dryers, extruders, labeling machines, mixers, indexing machines, belt and slat conveyors); car industry (conveyors, indexing machines and overhead travelling cranes); beverages (bottle-washers, fillers, rinsing machines, corkers, winemaking plants); paper mills (suction rolls, felt dryers and stretchers, extruders and bleachers); cement (rotary dryers, rotary kilns, rotary mills, belt conveyors); ceramic (stirrers and mixers for liquids, screw feeders and batchers, clay extruders, mixers, rotary mills, grinders, flash mixers, large diameter fans); chemical (stirrers, mixers, inductors, centrifuges, screw feeders, grinders, soap flash mixers, filters, dough mixers pumps, flash mixers, cooling towers, stirrers and mixers for liquids, pressing machines); sewage and waste treatment (aerators, biological tanks, dewatering screws, rotary screens, mud thickeners, mud collectors, crank gears); rubber and plastic (extruders for rubber and plastic); civil industry/building (cableways, mobile scaffoldings, escalators, ski lifts, chair lifts, conveyors, elevators, skips, hoists); quarries and mines (feeders and batchers, bucket elevators, skips, crushers, honing machines, draining wheels, de-sliming machines, conveyors, scrapers, revolving screens, vibrating screens); manufacturing industry (chain conveyers and tumblers); packaging (packaging machines, indexing machines, taping machines, palletizers, strapping machines); metal mills (boring machines, bending machines, forming machines); wood industry (chip feeders, press rolls, crushing machines, drum barkers, mechanical barkers, saws, chain conveyers, cutting machines); material handling/cranes (overhead power rails, bridge cranes, traverse movement cranes and elevators, winches); leather industry (tumblers, indexing machines); 3
metal industry (winders, shearing machines, rolling mills, de-coilers, drawing machines, roller ways); textile industry (cards, gig mills, warping machines, pickers, cutting machines and knitting machines) wind. Products & Services 17 catalogs Rossi manufactures one of the widest ranges of gear reducers, gearmotors and electric motors currently available in the market from a single supplier. The range is illustrated in 17 different catalogs and it includes helical and bevel helical gearboxes and gearmotors, coaxial and worm gearboxes and gearmotors, planetary gearboxes, standard and brake motors, as well as special products for motions controls or for corrosive and aseptic environments, complete drive units and custom made solutions for special applications. Other standard products are the large size helical and bevel helical gearboxes for heavy duty applications (mining, construction, etc.) with cast iron split housings, right angle units, shaft mounted gear reducers, gearmotors for roller ways, DC gearmotors, and others. Large size gearboxes Both the planetary and the bevel helical range have recently seen an expansion of the range, following the introduction of new models able to reach 1.700 knm of torque for the bevel helical range and up to 3.000 knm of torque for planetary gearboxes. This is in line with the company strategy, which aims at offering an evergreater range of solutions for the heavy industry applications, such as mining, metal, aggregates, sugar, palm oil, etc. These extremely demanding applications require a high level of technical competence, product performance and reliability, that are the characteristics customers can easily find in Rossi. Electric motors Special attention is to be deserved to Rossi Motor Division, offering a complete range of asynchronous three-phase standard and brake electric motors according to IEC standards, and to high efficiency standards, ErP, EISA, MEPS standards, available with progressive starting, single or two-speed. All motors come with a wide range of options (encoders, brakes, special windings, etc.) and can be customized upon customer request. Application Engineering Choosing the right drive with the right technical specifications is vital for the reliability and competitiveness of any gearbox application. That is why Rossi sales and technical teams offer a highly competent support to the customers, assessing power requirements as well as all the other variables involved with the design of the power transmission. Custom Made solutions Whenever a standard product from any of the 18 catalogues is not enough to satisfy the customers needs, Rossi offers custom made solutions, which span from complete drive units to a special product, designed and built for the customer application. 4
This guarantees the perfect answer in term of price, performance and especially customer satisfaction. Sales & Distribution Customers and Sales Organization are supported by a qualified organization made of: Industry Segment Managers and Regional/Area Managers, supported by a Global Customer Care who coordinates the activity of the customer service (for order processing), Technical Support Dept., Shipping Dept. and After Sales Service. Rossi manages its sales both through a direct sales network of subsidiaries and an even more extensive network of dealers and distributors in more than 70 countries. A direct sales organization guarantees the excellence of the service. A dedicated internal team supports the technical sales engineers in the field, including application specialists who can solve all specific problems. Subsidiaries Australia Benelux Brazil China France Germany India Malaysia Poland South Africa Spain Taiwan Turkey U.S.A. UK These affiliated companies offer local stocks of products and assembly facilities, as well as testing machines and qualified personnel (trained at the Headquarters) that enable to offer fast deliveries and high quality service to the customers. In order to continuously grow in foreign markets, Rossi is now planning to open other subsidiaries in the years to come. Information Communications Technology Rossi has recently made important investments to update its information system introducing ERP software Oracle Enterprise One. The new information system, which has been rolled out in all manufacturing plants, has enabled the company to unify and coordinate all company s departments and manufacturing plants. This 5
important instrument has allowed the company to revise its organization and to improve its flexibility, its efficiency as well as its level of service to the customers. The integrated order processing allows verifying the feasibility of the order in real time, guaranteeing at the same time shorter and reliable delivery times. The lean manufacturing production processes as well as the assembly procedures have enabled significant reductions in lead times - assembly to order - and have improved the overall manufacturing efficiency. A complete automation of the sales organization, the web-based Rossi Solution program and the Rossi for you web portal for the customers allow to pick and choose the best products for its specific needs, and to get real time updated information regarding order tracking, deliveries, parts, invoices, without the need of other support. A sophisticated Business Intelligence system SAP Business Object (launched in 2008) enables all companies of the group to obtain day-to-day up to date statistics and KPI (Key Performance Indicators), which allow to investigate any aspect of the business and improve the decision making process. Continuous Innovation Rossi Group has always based its philosophy on the continuous innovation of the products and the manufacturing process. For this reason, the activities of research and development are of great importance and get better knowledge of specific applications with the aim of finding and offering the best and more innovative solutions, through continuous tests on material and lubricants, on gear reducers and other machines. Today, 35 people are employed in the Research & Development dept. (designers, technical application consultants, testing engineers). Every year, investments in this field are made by the Group for more than 1,5% of the total turnover. Research and development are carried out with constant application of the following principles: full scientific calculation of every component; generalized use of the concept of variation in geometrical progression; study and research for the perfection of every detail; experimentation and verification of the products with the latest testing equipment; compliance with international standards; focus on interchangeability and better service; focus on the achievement of the maximum compactness to reduce both direct costs and those generated by the application; use of modular designs. Quality System Rossi has always paid particular attention to quality. In order to obtain important results in terms of quality and productiveness, the company has been making large investments so as to improve products and manufacturing, machining, assembly facilities, including a systematic severe control of machinings, materials, purchased 6
Human Resources components and finished products. The outcomes obtained represent the results of a long term commitment to quality. In 1988 the company decided to set up a Quality System implementation plan. The program, built around the recommendations of ISO 9001 standards, was designed first and foremost to assure real quality. Through the implementation of this plan, in July 1992 Rossi became the first transmission manufacturer in Italy and second in Europe to obtain ISO9001 Quality Certification System. It was a very important step towards the long way of quality strategy and the beginning of a new stage. 900 employees The most important resource of a company is made up of its employees : this simple evident concept inspires the company policy of the personnel management at Rossi. In fact, the group has been investing huge resources - more than 2% of its turnover - in training and specific education of its personnel. Today, some 900 employees are working in the Group, including the Italian plants and the foreign affiliated companies. All employees are qualified and have a solid technical background. Continuous improvement & Training Continuous improvement and training represent an opportunity for professional progress for each single employee and contribute to significantly improve the general company's performance. It is only through the best use of human intelligence and working abilities that it is possible to maintain a competitive gap, necessary to face and win the challenges of the market. Every year, 14,000 hours are spent at Rossi for the training of employees and distributors personnel, including 2,000 hours theory with dedicated teachers. A specific training course is planned for each position, starting from recruiting. Apart from the scheduled courses, there are different refresher courses during the year. In addition to the theoretical training, a practical one is developed in specific departments. At the same time, about 600 students from different engineering high schools and universities participate every year in technical training with 6,000 hours of stage activity at the company. History The origin ln 1953, Gilio Rossi (initial letters GR represented the previous company logo), exploiting his mechanical ability and intuition, decided to start his own business performing machining activity for third parties. From a workshop to an industrial company In the years 1957-1960, Gilio Rossi with a few employees concentrated on gear reducers and gearmotors manufacturing and in a few years (1965) the craftsman became a significant industrial company, which later moved to the present address. Rossi invention: the Universal Mounting & the Single-piece Housing 7
In 1992, the company started manufacturing its helical and bevel helical gearboxes and gearmotors with universal mounting & single-piece housing. This innovation was a real breakthrough in the gearbox design and it was the stepping-stone for Rossi s success in the market, to the point that all other manufacturers few years later followed this solution. The second Manufacturing Facility In order to face the continuous growth, a second manufacturing facility was inaugurated in Ganaceto (Modena) in 1991 and the fourth subsidiary was established in Spain, in 1993. Quality System Certification On 27th July 1992, Rossi became the first transmission manufacturer in Italy and the second in Europe to obtain Quality System according to UNI 9001 standards. 3 year warranty In 1994, after the important goal of achieving the Quality System Certificate, the company decided to offer a 3 year warranty for all its products, as first company in the sector, becoming the new benchmark in the market. It was the first transmission manufacturer offering its customers this advantage (and it still remains today), which is a tangible sign of the degree of quality obtained on the products. Modernization and enlargement of the factories In 1996, following the continuous growth of the business, Rossi started modernizing and enlarging the offices, which were doubled in size. The total area of the Headquarters (plant and offices) reached 53,200 square meters in size, including 24,000 square meters of covered surface. In 1996 the company was employing 400 employees and more than 150.000 gear reducers and gearmotors were sold. Acquisition of Seimec In addition to the investments to improve manufacturing efficiency and company operation, in 1997 Rossi started a plan of growth through the acquisition of new companies and, by the end of the year, it acquired Seimec Motori Elettrici of Limidi in Soliera (Modena). Seimec was an independent manufacturer of electrical motors and already a preferred supplier of Rossi. A new IT System In 2000, the company completed the introduction of a new ERP J.D. Edwards information system, which had already been launched in 1997. At the same time, it opened out to the outside world with a customer oriented sales instrument aimed to qualify sales engineers activity and give customers an updated service through the program Sales Force Automation, which is part of CRM (Customer Relationship Management). Then, it started important investments in managing the internal logistics with the automation of the warehouse of the main company and the reorganization of the Subsidiaries Quality Certification whole manufacturing process. This project together with the new information system integrated within the whole company brought an improvement to the organization and better general performance and significant reduction in delivery times. 8
Pursuing the strategy of quality, Rossi Group activated a project aiming at the certification of the English, French and Spanish affiliated companies (obtained in January 1999, January 2000 and December 2002, respectively). Acquisition of SMEI In 2002, the Group took over the Italian company SMEI of Lecce, manufacturer and distributor of planetary gearmotors for the national and foreign market. This acquisition permitted the group to complete its range of products in a field of great strategic interest. Thanks to this acquisition, Rossi started supplying some of the most important customers in the wind industries in the US, Europe and Asia. Partnership with Habasit In October 2004, Rossi signed a partnership agreement with the Swiss company Habasit S.A.. Thanks to this, the Italian Group had the chance to share the resources with the Swiss company, world market leader in the manufacturing of power transmission and conveyors belts with direct subsidiaries in more than 36 countries. Through this agreement, Habasit has become the major shareholder in Rossi Group. The partnership with Habasit has allowed Rossi to strengthen its position in the international markets, in order to become a true global company. Knowledge Management In 2006, the new Knowledge Management project was launched, whose first result was the Intranet company network of the group, called RossiNet. Habasit completes Acquisition of Rossi In July 2009, Habasit completed the acquisition of the remainder part of Rossi shares, still owned by Rossi family. Since the acquisition of the 100% of the shares, Habasit took full control of the company. Oracle Enterprise One In 2009, the project for a new ERP System Oracle Enterprise One was launched. A new company logo and a new name In 2010, a new Rossi logo was introduced and the name of the company changed from Rossi Motoriduttori to Rossi Group. Web portal for customers In 2011, the new portal Rossi for you has been launched, allowing customers to select online gearboxes, to place orders and to perform order tracking, to obtain a wide variety of information as well as to receive invoices, etc. Rossi is next to the customers, wherever and whenever! New product selection tool for the market 2015: we are launching a new web based product selection tool for the market. New subsidiaries In 2011, a new subsidiary was established in Poland, while in 2012, another one was established in Turkey (in this new 1.000 square meters facility all Rossi products are assembled, using a local stock of products and components) 9
and one in Malaysia. In 2013, one subsidiary has been established South Africa and another one in Benelux. 2015: new affiliated company in Brazil. 2012-2016: a five years plan of investments for 70 M In 2012, Rossi Group launched its new 2012-2016 five years strategic plan that will see 70 million invested in manufacturing technology as well as overseas expansion. Management Team Giovanni Volpi Chairman Ethical Stance Our entire organization is dedicated to: conduction of the business in compliance with all laws and regulations; mutual respect meeting our moral and social obligations; complying with safety, health and security regulations; conserving resources and protecting the environment; never using company property and/or utilities for personal benefits; never taking decisions for personal gain; contributing to the local communities in which Rossi operates by adopting a code of conduct which ensures care, honesty, fairness and respect. Summary Name: Rossi S.p.A. Activity: manufacturing of gear reducers, gearmotors, motor-variators and electric drives Established in: 1953 Company s capital: 3,100,000 Euro (paid-up) HQs: Via Emilia Ovest, 915/A 41123 Modena - Italy Manufacturing facilities: 3 Affiliated Companies: 15 Shareholders: Habasit AG (CH) Managing Director: Giovanni Volpi Group Turnover: 131 million (in 2014) Export share: more than 60% Employees: about 900 Number of customers: more than 3000 Website: www.rossi-group.com 10