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31 31 HERAEUS GROUP – OVERVIEW OF CHANGE TOPICS OPERATIONS EXCELLENCE: ON THE WAY TO THE PRODUCTION OF TOMORROW Heraeus has set itself the goal of raising production to a world-class level, and the Operational Excellence program was created in April 2015 for this purpose. A team of Heraeus production experts is working closely with the responsible production managers to develop future concepts for individual areas and is monitoring the first steps of implementation. In the coming years, major elements of the global Heraeus production landscape will gradually be reorganized to promote excellence. LEADERSHIP MODEL: A COMMON UNDERSTANDING OF LEADERSHIP AS A BASIS FOR SUCCESS Heraeus considers a modern, consistent leadership culture to be an essential foundation for commercial success. The leadership model, which was globally introduced in summer 2015, has created a shared vision of good leadership. The leadership model describes what excellent leadership at Heraeus in- volves and what a leadership culture that supports the growth targets looks like. The leadership model is based on four pillars: business success, organiza- tion, our employees and ourselves. HERAEUS FIT: STRENGTHENING COMPETITIVENESS THROUGH INVESTMENTS AND OPTIMIZATION Heraeus is using the FIT program to strengthen its competitiveness through investments and site consol- idation, as well as optimize structures and portfolios. The program, launched in August 2015, consolidates a number of measures in Germany as well as around the world. A total of €150 million will be invested in modernizing and expanding important facilities in the coming years, including the Innovation Center in Hanau and the precious metals factories in Hanau and Nanjing. MAGELLAN: UNIFIED BUSINESS PROCESSES FOR A GLOBALLY ACTIVE ORGANIZATION Heraeus has been working within the framework of the Magellan program to create uniform Group-wide business processes based on a standardized SAP landscape since 2012. The Magellan program plays an important role in achieving the goals established in the Heraeus Guiding Principles 2020. 2015 saw the program come a good deal closer to reaching its goal, with rollouts in Hong Kong, Singapore, and New York, as well as preparations for implementation in Germany.

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