jensen-group quarterly review · to our economic drivers and supports our strategy to make our...
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JENSEN AG Burgdorf www.jensen-group.com
Buchmattstrasse 8 T +41 (0)34 426 16 46
CH-3400 Burgdorf F +41 (0)34 426 16 56 Page 1/16
JENSEN-GROUP
Quarterly Review
No. 6
Date May 22, 2013
Dear JENSEN-GROUP staff member,
We are looking back at an excellent year 2012 as well as a good 1st quarter 2013. If only this
would continue ! Unfortunately there is always a bump on the road that we need to pass or avoid.
Currently, our order intake is lower than we want it to be, however, we are expecting some large
projects in the near future. There are always new challenges we need to master. Luckily we have a
clear strategy and nothing will divert our efforts in respect to alignment, process and discipline.
One of our projects is to define our Build to Order BTO and Engineered to Order ETO products. One
of our future tools will be the JPP 2.0. In order to understand the difference, we have this simple
definition:
BTO:
Covers products which have clear specifications and options which are listed in our JPP 2.0.
BTO products have known specs, known cost and known time to produce.
ETO:
Covers products and options which are not priced in our JPP 2.0 and which need to be
addressed by our engineering department before being produced. Very often a functional
description is required. The price for the machine or option is on request.
We have the resources to handle both BTO and ETO products and our objective is to make sure
that we have the systems and processes in place in order to be able to qualify all our products,
which are sold in higher volumes, as BTO products.
The advantage of BTO is that we know our contribution margin when the machine or system is
sold. Normally "no surprises" equals a happy customer and a quick start-up. ETO/BTO contributes
to our economic drivers and supports our strategy to make our equipment plug and play.
JENSEN AG Burgdorf www.jensen-group.com
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We will be implementing JPP 2.0 this year and already thank you for embracing the implementation
and making sure this project will be a success for the JENSEN-GROUP.
With best regards,
Jesper Munch Jensen
CEO
Financial Results
Figures 2012 and 2013/Q1 ResultsCopytext News
We reported for 2012 record high revenues of 229.9 Million Euro compared to last
year's revenue of 216.2 Million Euro. Thanks to the high activity level and
improved cost control on large projects, profitability increased as well. The order
backlog decreased during 2012 in various markets.
The revenue in the first quarter of 2013 was 58.9 million euro, which is 0.8%
lower as compared to the same period in 2012. The order backlog at the end of
March 2013 was 15.9% lower than at the end of March 2012. However, we
expect a first half-year result to be similar to that of last year. We remain prudent
as the economic uncertainty affects the investment climate and consequently our
order intake and sales. The most important risk factors remain rapid changes in
demand, high exchange rate volatility and fluctuating raw material, energy and
transport prices.
Annual Report 2012Copytext News
The Annual Report 2012 is available on the website: http://www.jensen-
group.com/flip/Annual_Report_2012. As we take our share in the environmental
responsibility, we decided to publish the 2012 Annual Report in a fully digital
format for the first time. We expect the electronic-only distribution to save
thousands of Euros yet make the report’s facts and financial data more easily
accessible to more people. We hope that all our stakeholders will appreciate our
efforts in saving our precious resources and we hope that they will enjoy reading
our Annual Report regardless from their location.
JENSEN AG Burgdorf www.jensen-group.com
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News by Business Units
BU WT: Business Unit Washroom Technology
JENSEN Germany, Harsum
The design work for the new dryer family is nearly finished. The first WR60
prototypes are delivered and installed in a Swiss laundry in Q1. The machines are
optionally equipped with a fully integrated heat exchanger, hence no external
Recocross. After performance evaluation, we will inform about market availability
in due time.
JEDE has reactivated the "Lean Product Program" to further streamline the JPP
and options. The goal is to increase the number of BTO machines. More options
and ETO products are further available upon request.
JENSEN USA, Panama City
Our Futurail helpdesk in Europe is now fully functional and providing software and
support to many European projects. The new Futurail .NET software is now being
used on all new systems and all JEUS software engineers have been trained and
are now fully experienced.
BU FT: Business Unit Finishing Technology
JENSEN Denmark, Rønne
2012 has been a challenging and very busy year: our turnover in finishing
technology grew substantially, our new plant in China started with full production,
and the production of the Jenfold Tematic towel folders, the Jenfold Butterfly Fox
garment folders and the Jenform tunnel finisher from our Swiss facility was
moved to Denmark. The result is more than satisfactory.
In spite of these busy times with more business, we are pleased that the transfer
from JECH was completed faster and with less transfer cost than calculated in the
business plan, a result of the big efforts by our colleagues in JEDK and JECH.
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The "Butterflies" are now part of the
daily picture in the plant.
A new exciting Jenrail feeding station concept to facilitate the operators working
conditions was approved by the first customer Van der Kleij in The Netherlands.
The first installation will be in June, we will keep you informed when in operation.
This is a follow up from the big attention our different Jenrail concept presented
at the Frankfurt Texcare Exhibition in May 2012.
A magnet at Texcare, a smash hit for
laundries looking for automated
solutions: Jenrail
In order to enable sales people to make preliminary sales layouts themselves, a
project called "simple layout blocks" is being started up. The idea is to make
simple layout blocks available for our SSC's. These blocks will be generated
automatically from the advanced blocks we are using for the final layouts. "Your
Performance in Mind" is valid for our engagement towards our customers, but
also from the PEC towards the SCC!
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The Danish Minister for European Affairs Nicolai Wammen visited JENSEN
Denmark in November. The visit at JENSEN was part of a round trip to successful
companies to investigate if there are any connections between the different
causes to the success, and also to listen to proposals to improvements for the
companies' environment.
Morten Rask, Manager Production &
Engineering, guides Nicolai Wammen
around our factories in Rønne.
JENSEN China - FFT
In its first year of operation, our plant in Xuzhou achieved the goal in our
business plan to produce an ironer per week of the usual high JENSEN quality and
not less important: our SSC China managed to sell them as well. This is a
precision landing, and a great achievement for the entire team at JENSEN China
and the colleagues from JENSEN Denmark that have been supporting in the set-
up of the plant.
News by Business Regions
BRI Business Region I – Western Europe and Mediterranean Countries
France
JENSEN France can be considered as the miniature version of the JENSEN-
GROUP: Our SSC reported a record year with respect to turnover and operational
profit. This high turnover is linked to the commercial successes from the past two
years. Unfortunately, our skyride will come to a break: There are less big projects
of the size that we have been installing in the past. Luckily we do have several
medium size projects for delivery in 2013, plus interesting projects with some of
our key accounts.
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Looking back to two busy years, and
looking forward to a new year with
many exciting projects: the project
and layout department at JENSEN
France.
South Europe
Our business on the Iberian Peninsula, in Greece and Cyprus is catching up. The
economic situation seems to be clarified, and some projects are starting again.
Turkey
A new law forces hospital and nursing homes to process all linen in a heavy-duty
laundry. Until now, all staff took their work clothes home and washed them at
home. This is no longer allowed, which opens up new opportunities for JENSEN.
Together with our partner Tolon, we have created a marketing campaign to
convince hospital managers that JENSEN machines and solutions are the best
vitamines for their operations.
Italy
2012 has been a transition year for the Italian economy and society, with a brutal
stop in healthcare expenses. Investments have been halted, and private
customers find it difficult to get loans from their bank. This difficult situation leads
us to downsize the organization to adapt to these new market conditions.
Nevertheless, we are negotiating quite some interesting projects, and we are
about to install the first Metricon conveyor designed to sort automatically
personal clothes of retirement home people, which would be the first one in Italy,
and seems to be a very promising market in our countries.
JENSEN AG Burgdorf www.jensen-group.com
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BRII Business Region II – Northern, Eastern and Central Europe
Benelux
We are pleased to announce record high revenues for the Benelux in 2012,
thanks to a number of large projects in Belgium and The Netherlands. Our sales
team has recently been "rejuvenated", and we had many personnel changes.
Bernard Vermeiren, Ton Van Gool and Freddy Lampaert retired and were replaced
by two new sales managers - Geert Braeckman and Ilja Buunk - as well as a
service manager, Marc Janssens. We feel a good team spirit in both our offices,
which will also result in a positive business development.
Sweden
The activity in the market has improved in a very positive direction in Q4. The
number of projects is increasing, however, the price pressure remains very fierce.
Also in Sweden, we are very successful with our service contracts. We remain
cautious, and have already reduced our office space at our premises close to
Stockholm in order to save cost.
One of the latest laundries that have
been equipped with JENSEN equipment
processes floor mats that are used at
the entrance of shops and offices.
Certainly an asset in the long and cold
Swedish winter!
Switzerland
Thanks to a.o. the project KSB Baden (Cantonal Hospital Baden - see last
Quarterly Review), JENSEN Switzerland reports a high order intake. The closing of
the factory in Burgdorf is history, and we are working at the re-organization of
the "new" SSC. The service activities are picking up again. We strongly pushed
the selling of inspection contracts and maintenance contracts, which was quite
successful.
JENSEN AG Burgdorf www.jensen-group.com
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With a maintenance contract, we offer to have one of our engineers in the
laundry on a weekly base, so the laundry can replace or reduce their technical
staff. Such a contract enables the laundry to get professional maintenance
without adding overhead costs. This type of contract is very flexible and adapted
to the customers' needs.
One of the many laundries that are
visited weekly by a JENSEN engineer is
located in the Hotel Palace in St.Moritz,
a renowned 5 star hotel with
breathtaking views.
Germany
Harald Thiele has been appointed Sales & Service Manager at JENSEN GmbH,
Germany. Harald is a familiar face to the JENSEN organization, as he has worked
for both Senking and JENSEN during many years. After five years at Ecolab, a
supplier of detergents within our value chain, he has now come back to JENSEN
in order to assume a managerial position. Meanwhile, Harald had a great start in
his new job as SSC manager with great acceptance by our customers and
employees, and he is well on track with order intake and revenue.
Eastern Europe/CIS
The activity level in Poland and Czech Republic/Slovakia is getting back. We are
working on several new projects that look very promising. Thanks to our local
presence - we have offices in Lodz and close to Ostrava and the border to
Slovakia respectively - our JENSEN sales managers have strong relationships with
the local laundries.
United Kingdom
The UK industry is still fighting a price war, and we expect that the market will be
subdued this year due to the economic climate. Some of our customers are
running their plants on longer shifts, and other small groups are reducing textile
purchase which means that they are really feeling the impact of lower prices.
JENSEN AG Burgdorf www.jensen-group.com
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South Africa
The activity is very high at the moment: our distributor LEAD is very proactive
and pushes every possible sale.
BRIII Business Region III – Australia, Asia and Arab Peninsula
Asia
We are quite optimistic and see good and increasing activity in most countries
covered in Asia. The competition is getting more aggressive, but we still believe
that we are in a good position to maintain and even increase our market share.
JENSEN has become the top-of-mind supplier in Asia, and the benchmark within
the industry. By the end of 2012, there were more than 3 million hotel rooms and
suites in the Asian-Pacific Region.
JENSEN is ready to offer the perfect hospitality program to this growing market -
with an extensive performance program, and a strong network of SSC and
distributors. Each country however has a different economy, "investment mood"
and legislations. In Malaysia for instance, we eagerly await the elections in April
2013. By then, we will know how the healthcare concessions will develop. In
Singapore, the government subsidizes laundries when integrating automation -
which is very positive for us.
We recently installed the first JENSEN tunnel washer in India: The laundry of
Indian Railways processes the linen for luxury and express trains travelling this
vast country. Every passenger is given a linen kit comprising of two bed sheets,
one pillow, one pillow cover, one face towel and one blanket. In addition, a bath
towel is also given to passengers travelling first class.
The entire linen kit except the blanket is washed in daily, whereas the blanket is
dry cleaned monthly and sanitized every fortnightly. The laundry supplies many
thousands of linen kits per day to the passengers.
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A passenger suite on the Royal
Rajasthan on Wheels, one of the many
luxury trains owned by Indian
Railways.
Another première was recorded in Sri Lanka. In spite of quite a large population
of 20 million people, Sri Lanka is not yet a big market for us. Economy is
recovering now that the civil war has come to an end. We are delivering our first
ironer and folder to exclusive Cinnamon Grand Hotel. This will be a challenging
job with re-building machines on site because of tight access, but this is the only
way a number of existing hotels can upgrade. We have in some recent jobs
proven that we can be successful in doing this.
Australia
JENSEN Australia is getting ready for one of their largest projects ever: a new
turnkey laundry at Cabrini Linen. Located in the greater Melbourne area, Cabrini
produces more than 120 tonnes of linen per week for Cabrini - a conglomerate of
hospitals, a palliative care center as well as residential aged care home and
rehabilitation services. The new building is currently under construction and
equipment installation will start from June. Complete plant including Sorting,
Classified rail, 2 x CTW systems, 5 ironer lines and dry-fold – gas heated dryers
and ironers.
China
The market developments and the number of installations have encouraged us to
strengthen our SSC in Shanghai with additional personnel. The growing team,
headed by Thomas Yin, has now also moved to new and larger premises and is
focusing on the development of the LMT, the management of our distribution
network and gaining even higher market share. The trend with commercial
laundries being more active and professional is continuing. We are in an excellent
position thanks to our vast offering of automation solutions.
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A big success was recorded at a new laundry being built by one of our existing
customers in Nanjing: In addition to a JENSEN tunnel washer and two JENSEN
ironer lines, also the first larger Futurail Classified in China will be installed.
BRIV Business Region IV – Americas
The total turnover for 2012 was substantially above budget, and the sales activity
is still strong in all areas of our business. We acquired large orders both in
Canada and the USA.
Canada
In Canada, K-Bro is the largest provider of laundry and linen services for
healthcare, hospitality and other commercial sectors. With large processing
facilities in Quebec City, Montreal, Toronto, Edmonton, Calgary, Vancouver and
Victoria, K-Bro employs over 1600 people. Their order for its new healthcare plant
in Edmonton is the largest ever received by JENSEN USA and the JENSEN-GROUP.
In December, we also received a large order for finishing equipment for K-Bro's
laundries in Toronto, Vancouver and Victoria.
USA
Hospital Central Services Association (HCSA) plans to open its new laundry in
Auburn, not far from Seattle. When the business opens in 2013, the 144,357-
square-foot (13,400 sq.m.) is expected to employ up to 165 people to launder
the region's hospitals' laundry. HCSA already operates a large institutional
laundry near Seattle University that provides services to 11 hospitals in Seattle.
That plant, which moves to Auburn, processes 20 million pounds of laundry per
year and operates 14 hours per day, 364 days per year. Linens such as sheets,
towels, and surgical scrubs are cleaned at the laundry. HSCA is a coalition of six
hospitals that serves itself and seven others. The consortium processes some 2.6
million pounds of linen per year only for Virginia Mason Medical Center, a 20
percent owner.
Latin America
Laundries in South America are eager to catch up on the automation side: We
recently installed some Metricon systems, and are very positive about large
projects.
JENSEN AG Burgdorf www.jensen-group.com
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Parts and Service
We are continuing to build up after-sales support capability. In 2012, a team of
19 field engineers carried out around 100 planned service visits that generated
roughly 50% of the total service revenue, excluding machine installations. They
also held five service training schools for customers which were well attended and
very appreciated by our customers.
Tune in to JENSEN: When you turn on
the radio, you expect that your
favorite channel broadcasts every day
on the same frequency. Customers can
count on that with our JENSEN service
programs. We have been highlighting
this advantage of working with JENSEN
in a recent marketing campaign, and
confirmed it in all of our SSC.
Development of the JENSEN USA spare parts website is ongoing and now
accounts for 30% of total spare parts sales. We are continuing to develop our
parts stocking criteria and in 2012 over 85% of the parts ordered were in stock
and could, if required, be shipped the same day.
News from Corporate
IT Tools for more alignment within the JENSEN-GROUP
New JPP 2.0
We are launching a new sales quotation tool which will enable our sales
organizations to
. Produce clear and uniform quotations faster and with less effort;
. Guarantee error-free configurations and quotations;
. Respond quicker to demands from the market;
And which will support our company to grow in a profitable way.
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The JPP 2.0 is one important step on our way from good to great, and it is also
the first project of this kind that will be implemented in all our organizations.
The concept of this new tool can be compared with the configurators that you
may know from the car manufacturers: Anyone who has already pre-configured a
new car online knows the benefits of such an easy, trouble-free and efficient tool.
More details about the new JPP 2.0 were disclosed in a dedicated e-learning
session to our sales and marketing staff. At the moment, the teams at the PEC
are working hard to convert all existing texts into the new system. The
Acceptance Team is already "challenging" the tool and its implementation.
JENSEN UK will be the first SSC to work with the new JPP 2.0, and we will report
on project milestones in the next Quarterly Review. For immediate questions and
comments, please write to [email protected].
New tools being rolled out
Wireless Internet is now available in all our European SSC, making life much
easier for customers and colleagues visiting the offices. In average, more than 80
persons use the wireless internet - and that is the count per day!
The welcome to visitors has also been professionalized at many JENSEN locations
with a uniformed welcome screen, displaying the names of the visiting guests and
the possibility to add local news.
The Welcome Screen at JENSEN
France, pictured with Marie-Noëlle
Pellet.
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We are expanding the existing contracts with our IT outsourcing partners to make
sure that all JENSEN entities get better corporate IT services. We foresee that the
improved performance and higher availability of the Blackberry-, Exchange- and
the Axapta Access servers will be a great support in your daily work.
Both JECH and JEGR in Burgdorf are fully operational with Lync, a communication
tool from Microsoft that replaces existing switchboard systems, instant messaging
and eventually also WebEx. Thanks to the consequent use of Lync, our costs for
mobile phone calls and roaming have been substantially reduced - by up to 70%!
We already started projects with individual SSC to replace their existing
switchboard system with Lync. The feedbacks so far are very positive, especially
because Lync helps people to interact in a more efficient way.
Communication - Notes from the editor
Some of the stories in this Quarterly Review refer to earlier periods. Because of
customer confidentiality, we cannot always report directly on the spot. We hope
that you still enjoy reading this Quarterly Review. Contributions or comments
from you are - as always - very welcome.
May 22, 2013 / Corp. Communications
JENSEN AG Burgdorf www.jensen-group.com
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People & Positions
Time period: September 2012 - April 2013
New colleagues Name Function Unit
Calvin Hart Service Engineer JENSEN Australia
Bal Lamsal Financial Accountant JENSEN Australia
Linh Nguyen Service Engineer JENSEN Australia
Ravi Sharma Finance Manager JENSEN Australia
Dominic Weibel Service Engineer JENSEN Australia
Nathan Williams Sales Support JENSEN Australia
Wim Quisthoudt Project Engineer JENSEN Benelux
Dennis Van Empelen Service Engineer JENSEN Benelux
Rinus Verbeke Service Engineer JENSEN Benelux
Danny Liu Service Engineer JENSEN China
Frank Wang Service Engineer JENSEN China
Steven Wang Service Engineer JENSEN China
Bente Asmussen Engineer JENSEN Denmark
Heidi Bjerregaard Production Assistant JENSEN Denmark
Mikkel Due Trainee JENSEN Denmark
Kevin Frost Production Assistant JENSEN Denmark
Kathja M. Hansen Quality Assistant JENSEN Denmark
Frank M. Pedersen Technical Purchaser JENSEN Denmark
Rüdiger Ackermann Service Engineer JENSEN Germany
Kerstin Crome-Schramm Graphic Artist JENSEN Germany
Tobias Göhring Mechanical Production JENSEN Germany
David Hackenberg Electrician JENSEN Germany
Mario Hartmann Sales Support/Proj. Engineering JENSEN Germany
Carola Hinz Order Handling JENSEN Germany
Wladimir Leinweber Mechanical Production JENSEN Germany
Linda Mai Service Administration JENSEN Germany
Christian Petschel Sales Manager JENSEN Germany
Andreas Rau Mechanical Production JENSEN Germany
Matthias Sonnemeier Service Engineer JENSEN Germany
Harald Thiele SSC Manager JENSEN Germany
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Benjamin Walter Electrical Production JENSEN Germany
Steven Wehmeier Mechanical Production JENSEN Germany
Alexander Weilert Engineering & Prod.Development JENSEN Germany
Rikard Jensen Service Engineer JENSEN SIPANO (Sweden)
Daniel Arn Service Support JENSEN Switzerland
Gerhard Kohler Service/Spare Parts JENSEN Switzerland
Stefan Tschabold Service Engineer JENSEN Switzerland
George Page Apprentice Engineer JENSEN UK
Ali Scott Apprentice Engineer JENSEN UK
John Michalik Parts Analyst JENSEN USA
Kenneth Murphy Buyer/Planner JENSEN USA
Leah Steinbrecher Administration JENSEN USA
Chris Whittle Systems Design Engineer JENSEN USA
Relocations Name Function Unit
Dennis Lenos Service Engineer JENSEN Australia
Loris Fazzari Service Engineer JENSEN Switzerland
Martin Wölzmüller Service Support JENSEN Switzerland
New assignments Marcus Borne Engineering & Prod. Development JENSEN Germany
Roland Bosch Service Engineer JENSEN Germany
Michael Nasdala Technical Tendering JENSEN Germany
Jesse Dickon Electrical Engineer JENSEN USA
James Thorpe VP Sales & Marketing PEC JENSEN USA
We wish all new colleagues and all colleagues with a new assignment a great career within the
JENSEN-GROUP, lots of success and personal satisfaction.
Sincere thanks to all JENSEN Business Regions and Business Units for their input to the Quarterly
Review. It has become a long piece of reading material, and we hope that you will enjoy reading it.
JENSEN-GROUP/Corp. Communications