Florian Geistdörfer Summarizes the Current Status of the COO Division and Provides an Outlook for 2022 Initiatives

Dear Colleagues,

Time flies and I can get in touch with you today with a short update on my first six months in the new role.

As you know from previous posts, my area of ​​responsibility revolves around our operating model - hence the processes by which an organization delivers value to its customers and how an organization actually manages itself. The core elements are people, processes and technologies.

In addition to the demanding day-to-day business, my team has “behind the scenes” initiated many strategic ENGAGE initiatives in recent months. We are consistently aligning our “not directly productive” functions with our growth strategy.

In this post, I would like to give a brief overview on behalf of my team - you will find out more details directly from the responsible persons in the coming weeks and months.

Under the direction of Stefan Schreiber, the business architecture function optimizes our global processes and the associated IT architecture. The teams ensure that the processes within the group reflect our business reality as best as possible and that the daily work (activities, information exchange and communication) can be done as automated, quickly and easily as possible.

Initiatives I would like to highlight here for 2022 are:

• Version upgrade and complete remodeling of the process map of the Infor ERP system and the linked architecture (PLM/PDM, product configurator, ENAIO, CRM, production planning tool FELIOS, CAQ tool BABTEC, etc.)
• Implementation of a cloud architecture with a focus on networking, self-service and automated update cycles for better performance and user satisfaction
• Implementation of a modern collaboration and communication architecture (O365, MS teams, news platform, etc.) with the appropriate set of rules and standards
• Modernization and automation of IT administration and security architecture

Under the direction of Waldemar Ungefug, the Treasury, Financial Accounting and Controlling departments optimize the group's commercial and business steering logic. The teams ensure that we make our decisions based on relevant, up-to-date and reliable KPIs - this is the only way to ensure a short-term and tactical; but above all long-term and sustainable management of the group.

Initiatives I would like to highlight here for 2022 are:

• Introduction of a group-wide data lake, i.e. a depot of clearly defined and adjusted data and KPIs, which can be combined, modeled and evaluated live and user-friendly using customizable dashboards.
• Complete remodeling of the group-wide pricing logic, i.e. the calculation of the cost and margin items for uniform intercompany and market / customer pricing
• Automation of the processes via a new financial accounting software
• Automation of the reporting architecture, including modern, digital, individualized dashboards

Under the direction of Oliver Werner, the supply chain management department optimizes our supplier network. The teams ensure that we build sustainable, resilient, and cost-optimized supplier relationships worldwide through the right and consistent selection, support and evaluation. This will sustainably ensure the quality, predictability, and risk mitigation of our supply chain worldwide.

Initiatives I would like to highlight here for 2022 are:

• Complete remodeling of the implementation of supplier management routines (qualification; sampling process; replenishment; lifecycle management and performance evaluation; price targets, etc.), supported by automated processes and a reporting and systems infrastructure.
• Complete remodeling of the supplier contract, quality, and compliance routines (quality assurance agreements; general purchasing conditions; framework agreements and modules; compliance advice; etc.), supported by a corresponding portal/system infrastructure.
• Definition of holistic product group strategies with short, medium and long-term action points and savings potentials.

Under the direction of Werner Bitterwolf, the department optimizes our group-wide quality management (QM) and integrated management system (IMS). The global QM-teams ensure that, in close cooperation with the quality assurance functions of the production sites, we offer our customers, suppliers and partners a consistent and comparable quality and service across the entire group.

Initiatives I would like to highlight here for 2022 are:

• Certifications in line with customers' quality and social expectations, in line with operational requirements and international standards in an integrated management system (IMS).
• Digitize, update und transfer of IMS documentation into ViFlow tool
• Results of the standardized customer and internal audit types are monitored and fed into a robust review and reporting process in close cooperation with the sites, using the functionalities of the CAQ software.
• Preparing the organization for our quality and certification challenges in the MedTech and Aerospace segments.
• Expansion and implementation of high-quality, standardized competence tools (training and qualification concepts, trainers, courses, etc.) in the area of ​​quality methods (audits, 8-D, structured error analyses, Copy Exactly, validation, FMEA, etc.) and IMS to ensure a homogeneous, excellent performance across all PI locations in the perception of our customers and partners.
• Establishment of a PI group-wide QM / QS / IMS network to use synergy effects, avoid duplication of effort and harmonization of cross-site QS processes

Under the leadership of Annegret Lisker, the HR department optimizes our group-wide HR administration and HR development processes. The teams ensure that vacancies are optimally filled and onboarded; and our employees are optimally cared for and developed.

Initiatives I would like to highlight here for 2022 are:

• Introduction of a group-wide performance evaluation routine (management by objectives; personal competence and development profiles/levels; career paths and KPIs; etc.) for better and more objective transparency including a remuneration model.
• Introduction of a group-wide talent management routine (success profiles; development paths; succession planning) for internal talent retention and development.
• Introduction of a professional recruitment routine (process, tools, reporting, fulfilment) in line with the growth objectives and closely linked to the competence matrix.
• Modernization and automation of the administration architecture including self-service.

The organizational development function will initially be overseen by me personally. The area includes the strategic and organizational long-term development of the PI Group and currently consists essentially of the elements of the ENGAGE transformation project. Controlling the implementation plan is currently the only yet challenging task here.

As you can see in this brief overview, there is a lot happening in the functions and I would like to take this opportunity to sincerely thank the very dedicated employees who are driving these initiatives.

The points listed have one thing in common: my team ensures that your everyday work "just works" as easily, as quickly and as imperceptibly as possible. Using a clear, holistic roadmap, we systematically question existing process and system solutions in order to continuously consolidate and upgrade them. We want to be as digital and automated as possible, to offer our customers, partners and our employees a high-performance, scalable and high-quality working environment.

So much for the initial overview - as always, my team and I are available at any time for queries or detailed questions.

We will continue to keep you informed on our progress.

Thank you for your attention and best regards,

Florian Geistdörfer

Chief Operating Officer & Managing Director PI Switzerland AG