Dear Staff and Management,
Another year is coming to a close. We have seen a year with many challenges in the economy, in the political arena and in some of our businesses. As so often good stories and setbacks can be told.
Before I summarise the year and talk about our ambitions in 2016, I would like to thank you all for your hard work and dedication for the Zuellig Industrial company in 2015. In these unpredictable times it is even more important we work closely together as one company, the four business units optimizing the opportunities available and the Central Services providing the back office support proactively.
Generally 2015 was a very tough year for any business which depended on capital investments. Due to the weak ASEAN economies, investments were held back and finding work and projects for our business units in that segment was difficult. This was especially true and still is felt in ZI-ARGUS and the equipment project side of ZI-CHEM. Luckily the manufacturing sector kept its demand flowing and we managed to secure good results in ZI-LIFE and in ZI-TEC. As a whole Zuellig Industrial has not met budget, neither on revenue nor on profit targets. A situation by the way, many companies face today.
Nevertheless we have a good business model, with a good mix of activities and a good strategy for the future. In 2015 we have acquired Global Multi Solusi, a Surabaya based engineering company and invested into Indosol, a Jakarta based water treatment solutions specialist, allowing us to strengthen our position in these market segments. More acquisitions are planned for all our business units to improve our market penetration and the size of the company. We have also been able to secure the co-operation of reputable international suppliers with outstanding products.
We will have to continue to look for more internal efficiencies how we conduct our business. We must be open for changing current business processes and adapt new standards. The ERP project we are starting in Thailand in 2016, and widen subsequently to all countries, will require precisely that; changing the way we administer the distribution business, the project business and all of finance and administration. I count on your full co-operation to be part of this journey of change. The benefits will be a more modern work environment, faster data administration and more accurate management information.
I do expect 2016 to be another economically challenging year. Therefore we have agreed with the Zuellig Group on a modest budget, one which should be achievable even under difficult circumstances. As you know, the competition will not sleep. Hence we will have to be focused and try to anticipate customer’s needs. Much will depend on our competitive sales activity and an effective order execution. I can assure you of my full support in this fight for market share and look forward working with you in the various fields.
For the upcoming change of the year I wish you and your families best of luck, health and satisfaction. I wish 2016 despite all the negative press to become a happy and successful year for all of you!