English - Fastems

ANNUAL REVIEW 2011
© PressGATE
© PpressGATE
1

For Fastems, the key word in 2011
has been growth
For the global manufacturing industries, 2011 marked the first full year
of recovery following the financial crisis and recession. This recovery,
that started the previous year, picked up speed, only to be slowed down
again by the consequences of the European and US debt crisis. In the major
markets served by Fastems, investment activity in machine tools increased
clearly, characterized by high productivity solutions that call for
advanced automation content. Even though the order intake stalled in the
second half of the year, Fastems starts into 2012 with a record order backlog.
Even if economies, struggling with their debt burden, initially react
by cutting public spending and increasing tax income, sustainable growth
has to be fuelled by economic growth supported by productivity gains in
the mid-term. This is where the core know-how of Fastems can provide
answers! However, these comments would not be complete without mentioning
that automation also provides advantages related to working capital
turnover, ergonomics, production costs, and quality.
Even if Fastems, with its well-known 8760 claim, is renowned for
its FMS know-how and related installed system base, we are continuously
developing our offering to account for the changes in the
market. For one, this has been achieved by building a palette of lifecycle
supporting service products, but also by enriching our solution
integrator capabilities. As our value proposition additionally consists
of a consultative approach in sales and project delivery excellence,
we have set out to further strengthen our go-to-market paths.
This means strengthening our efforts in key markets, establishing a
stronger presence in growth markets, and developing further strategic
partnerships established in the past.
For Fastems, the key word in 2011 has been growth. The headcount
has increased to cope with the strong recovery in sales but also
through the acquisition of TH-Tools in late 2010. The track record
of Fastems includes the elements of being strongly scalable in resources
to adapt to the cyclical nature of the capital goods market. Both
manpower and working capital have also been managed in a controlled
way in 2011. The full positive impact of these actions became
visible in the last quarter of the year and will continue to do so as
we enter into 2012.
The sustainability of our business model, the strong knowledge
base, our market position, and last but not least, a sound order
backlog let us look into the future with optimism. We are, as always,
dedicated to deliver excellence in performance to all our stakeholders.
Tomas Hedenborg
Executive Chairman
”The sustainability of our
business model, the strong
knowledge base, our market
position, and last but
not least, a sound order
backlog let us look into the
future with optimism.”
2 3

“Modular systems are the
answer to the needs of
SMEs and we sell these
solutions through the dealer
chains of machine tool
manufacturers.”
Automation is the
answer for large
fluctuations in
volatility
In 2011, Fastems’ sales increased sharply, by more than 50%.
The total value of received orders also increased, so that our order
backlog at the end of the year was a third higher compared
with the previous year. The supply chain stretched throughout the
chain and the slip in the first half was caught towards the end of
the year. Our clients include leading aerospace and mechanical
engineering clusters. We deliver solutions to the entire depth of
the manufacturing chain.
Modular systems are the answer to the needs of SMEs and we sell
these solutions through the dealer chains of machine tool manufacturers.
We will further strengthen our cooperation with the major
machine tool manufacturers and create partnerships with them,
which allows customers an easy way to acquire machine tools and
the associated automation from the same channel. For customers
who do not settle for pallet automation only, but want to implement
new internal factory logistics, we offer turn-key solutions. For
example, we delivered a number of systems to BAE Systems in 2011,
involving almost all the elements of our offering. We delivered systems
to 20 different countries in Europe, USA, and Asia.
Our customers operate in fluctuating markets that call for flexibility
in production and the ability to adapt quickly to changing
situations. Here automation is the perfect solution. Growing competition
from countries with more favorable labor costs requires more
efficient production, and competitiveness that is based on automation
and quality and not on low-cost labor. Expensive investments
in machinery also require effective use – reaching closer and closer
towards 8760 production hours in a year. An indication of the sustainability
of our concept is the increasingly growing number of modernizations
of older systems. Systems themselves are timeless, only
components of the systems are upgraded to meet present norms. The
oldest systems in place will soon be 30 years old and still remain
competitive.
Fastems is an integrator and our business model is based on this.
We have expertise in manufacturing control systems, machine tools,
robotics, FMS automation, tools, and maintenance. We enhanced
our robotics expertise and founded a separate business line in order
to accelerate development. Fastems is a unique company and our
customers can rely on us in a variety of issues and needs. Although
the main components are assembled and tested at our main factory,
we are determined to move our operations near our customers.
Through our ten affiliates we offer our expertise to our clients in
their language. In particular, we have focused our activities in Germany
and North America over the past year. We also opened an
office in China. Our staff grew by more than a hundred people, of
whom about 60 are new to Fastems. As our operation is also supported
by time- and place-independent Teleservice network, we can
ensure high availability of equipment and real-time service.
4 5
© PressGATE
Jarmo Hyvönen
Chief Executive Officer

New state-of-the-art module assembly facilities were taken into use in
Wärtsilä’s Delivery Centre in Vaasa, Finland.
Robotized finishing.
A well- designed tool can complete several
operations in a single work phase.
Esko Aho, the former Prime Minister of Finland,
6 was one of the keynote speakers In Tampere
7
Manufacturing Summit.

FMS projects
The trend towards highly customized special
systems continued in project business. Over
40% of sales consisted of various aerospace
projects. In the aerospace segment, we managed
to extend our customer base with a couple
of new accounts including a good chance for
long-term cooperation.
The increased number of extensions and
modernizations of existing systems and also
growth in modular standard projects were positive
signs of our customers’ situation. Despite
the fact that the general market situation
has remained fuzzy, we have a much better and
more balanced project portfolio than a year
ago. This gives us a positive starting point for
2012.
Our main development result of 2011 was
launched at EMO in last September. The next
generation control software, MMS5, has received
a really positive response and our expectations
are high when the deliveries begin.
Fine tuning of the control system and training
of the whole personnel will be our challenges
during the first half of 2012. Another approach
when strengthening our position in the market
is our new concept for large scale vertical pallet
systems. Ongoing development will be seen in
production at our customer during 2012.
Modular solutions Robotics and tools
Lifetime care
The year 2011 was a good year for Fastems’ FPC
and FPM solutions. Our factory was busy delivering
units to traditional European and North
American markets, but it was the first deliveries
to Asia, including China and India, that
made 2011 an interesting year. It seems that the
work with our partners and end customers is
bringing results and we will continue to do that
work.
We developed a new FPC-3000 model that
will be launched into the market during 2012.
The new product is suitable for 3000 kg payloads
and can handle parts that have a diameter of
1600 mm and are 1800 mm in height (measurements
including pallet). The basic unit includes
six storage places for machining pallets, and it
can be extended to include up to 18 places. The
new FPC-3000 improves our competitiveness
in growing automation market of larger machine
tools.
In sheet metal automation, we brought a new
Combo product into the market. The Combo
broadens our product offering towards smaller
systems. The new product was welcomed by the
market and we delivered multiple systems to
Europe and North America.
We continued Fadector (automated data collection
system) deliveries and started to develop
functionality for the MMS5 control system
that will make it easy to combine Fastems control
systems with Fadector features.
In 2011, we took big leaps in increasing our
know-how. We delivered numerous robot cells,
both to small local companies as well as global
enterprises. Our software expertise was crucial
in the wide range of deliveries, from upper level
control systems to programming of a single
robot with the Fastsimu offline programming
software that we have developed. A deburring
cell equipped with the Fastsimu software and
an autoloading cell integrated into the Fastlean
FMS system were our new offerings in robotics
introduced at the EMO Hannover 2011.
We strongly believe in the potential of robotics.
To support its development, robotics was
separated into its own business line at the beginning
of 2012. This year, we expect growth
especially in the traditional machine shop sector
and in the aerospace industry. We expect
that the RFC finishing cells will break through
in the aerospace industry.
With the deliveries in the automotive industry
playing the most significant role, the beginning
of 2011 was the busiest in the history
of our tool unit. All three of our factories,
as well as our wide partner network, had a full
workload. The situation became easier toward
the end of the year. Also the information systems
and processes of the new branch offices
were connected to Fastems processes during
2011. Fastems’ tool business line was founded
as a result of company acquisition in late 2010.
We have high expectations for 2012. Our
order backlog is record high, and particularly,
the clear recovery of the Russian market can be
mentioned as a positive thing.
The year 2011 was challenging but also successful
for Fastems service. In service business,
the key is our installed base, which guarantees
steady workload. Naturally, new installations
are also important when looking for growth. In
2011, our service unit was able to exceed our sales
budget in all areas.
Several development actions were taken during
2011. Local service offices, as well as remote
support and spare part service capabilities, were
strengthened. Also, actions to establish a Fastems
office in China were planned and completed.
In 2012, the focus of service development is
in our customers’ daily use of automation. New
services will be launched to help our customers
enhance the productivity of their automation solutions.
As always, we focus on all of our existing
customers, and this year there will be a special
emphasis in Asia through our newly established
service office in China.
Fastems services are divided into three focus
areas in accordance with customers’ production
life-cycle: start-up services, productivity services,
and modernization services. Great service
personnel working with Lean processes based
on advanced ICT solutions form the core of our
customer service.
Fastems Finland has taken the furthest steps
in service development. Its offering includes import
of machine tools, accessories, and robots,
plus comprehensive Lifetime Care covering all
the aforementioned machinery and automation
systems as well. Service agreements vary from a
single machine maintenance agreement to extensive
Full Care agreements.
8 9

Financial results
Fastems Group 2011 2010
Turnover, € million 80.6 48.9
Change over previous year, % 65 -19
Operating result, € million 1.1 1.5
Earnings before taxes, € million 1.2 1.4
Balance sheet total, € million 58.5 51.5
Solidity, % 58,6 66.9
Personnel 413 290
€
10
11
Invoicing
Export by region
Personnel outside Finland
Personnel by operations
Finland
37%
North America
26%
Customer service
& Sales
158
USA
18
Germany
19
Scandinavia
12%
UK
16%
Administration
36
Baltic countries
1%
Spain
Japan
1 Lithuania
1 2
Modular solutions
22
Other countries
13%
Italy, Spain
4%
UK
3 France
3
Robotics
and Tools
103
Export
63%
Central Europe
28%
Italy
4
Sweden
9
FMS projects
94
Fastems Board
Executive Chairman
Tomas Hedenborg
Members
Jöns Danielsson
Heikki Räty
Members of Development Management Team
CEO
Jarmo Hyvönen
Director / FMS Projects
Pekka Lammassaari
Director / Modular Solutions
Harri Lehtinen
Director / Robotics
Tomi Tiitola
Director / Customer Service
Seppo Lehtonen
CFO
Jukka Marttila

Fastems Oy Ab
Tuotekatu 4
FI-33840 Tampere, Finland
Tel. +358 (0)3 268 5111
Fax +358 (0)3 268 5000
Hakkilankaari 2
FI-01380 Vantaa, Finland
Tel. +358 (0)9 3450 48
Fax +358 (0)9 3450 5623
Muottitie 1 A
FI-65320 Vaasa, Finland
Tel. +358 (0)3 268 5880
Fastems AB
Bultgatan 40
(BOX 513)
S-44240 Kungälv, Sweden
Tel. +46 (0)303 246 900
Fax +46 (0)303 246 910
Fastems GmbH
Heilbronner Straße 17/1
D-73037 Göppingen, Germany
Tel. +49 (0)7161-963 800
Fax +49 (0)7161 -963 8049
Branch office of Fastems GmbH
99, rue de Gerland
F-69007 Lyon, France
Tel. +33 (0)4 3765 2000
Fax +33 (0)4 3765 2001
Fastems
Iberica Automation S.L
Calle Moià, 1
E-08006 Barcelona, Spain
Tel. +34 932413704
Fax +34 934147036
Fastems authorized dealers
Benelux countries
Rob Rebel
Tel. +31 (0)6 53969793
E-mail: rob.rebel@ertec.eu
Netherlands
Henk Kremers
Tel. +31 (0)40 7875625,
(0) 653210172
Fax: +31 (0)40 2045647
E-mail: henk@valkworks.nl
Russia
Pumori-North-West Ltd
Dimitri Verigin
Tel. +7 812 622 05 46
Fax: +7 812 622 05 47
E-mail: 12 verigin.dmitrij@pumori.ru
Fastems K.K.
Office La Mer 2F
Sagami-Ono 8-4-2,
Minami-Ku, Sagamihara City
Kanagawa Prefecture,
252-0303 Japan
Tel. +81 (0)80 3555 1283
Fastems LLC
9850 Windisch Road
West Chester,
Ohio 45069, USA.
Tel. 1 513 779 4614
Fax +1 513 779 4638
Fastems Ltd
Hawley Mill-Hawley Road
Dartford, Kent DA2 7SY
United Kingdom
Tel. +44 (0)7818 427133
Fax +44 (0)1322 282250
Liverpool Science Park
131 Mount Pleasant
Liverpool, L3 5TF
United Kingdom
Tel: +44 (0)151 705 3645
Fax +44 (0)151 705 3410
Fastems S.r.l
Via Bruno Buozzi, 61
I-20097 San Donato
Milan (MI), Italy
Tel. +39 02 365727.23
Fax +39 02 365727.24
Fastems UAB
Kalvarijos str. 38
LT-46346 Kaunas, Lithuania
Tel. +370 37 291567
Fax +370 37 291589
www.fastems.com