HUBER+SUHNER : strengthens market orientation and simplifies structures

08/12/2020 06:45:00

Consistent focus on market segments Industry, Communication and Transportation - Abolition of the matrix structure at top management level - Strategic focus remains on core markets and growth initiatives - Reduction in the size of the Executive Group Management - First-time financial reporting in new market segment structure from first half of 2021

With effect from 1 January 2021, HUBER+SUHNER will simplify its organisational structure and orient itself towards market segments at Group level. The 3x3 model (cube) of markets, technologies and regions will remain. The three market segments Industrial, Communication and Transportation will replace the technology segments Radio Frequency, Fiber Optics and Low Frequency as the highest organisational level. The previous matrix organisation with a regional organisation in eight sub-regions will be abolished and divided into global sales teams by market. Full operational responsibility, which previously resided within the technology segments, will now be transferred to the three market segments. They are set up uniformly with the three areas Sales, Strategy and Business Development, and Technology and Operations.

Market orientation strengthens customer focus while vertically integrated segments increase agility

In the area of Sales, HUBER+SUHNER is establishing global teams within the market segments in line with the often global customer presence. This allows the company to centre its customer interface on a specific market segment and to serve them in an even more targeted manner. Proximity to the customer will improve, which will increase customer focus and efficiency.

The area of Technology and Operations will be responsible for research and development, product management and the entire supply chain from planning, operational procurement and manufacturing through to logistics. The three technologies will be integrated into the three market segments, so that each market segment is responsible for the dominant technology: Radio Frequency will be integrated into the Industry segment, Fiber Optics into Communication and Low Frequency into Transportation. This will keep the technology expertise together as a whole and provide an organisational assignment to the segment in which it is most used. As is already the case in various applications today, customers in the market segments will continue to be offered integrated solutions that span the different technologies. The combination of segment-specific and cross-segment technologies will open up additional opportunities to positively influence business success.

Situated between the customer-focused and market-oriented Sales area on the one hand and Technology and Operations on the other, Strategy and Business Development ensures a significantly higher market focus within the market segments. In addition to marketing and portfolio management, this area will be responsible for bringing together the solutions offering by incorporating all available technologies. The strategic orientation of this area will provide an important impetus for the organisation and the long-term positioning of HUBER+SUHNER with regard to innovation, partnerships and M&A.

Core markets and growth initiatives remain a strategic focus

HUBER+SUHNER continues to place the strategic focus on core markets and growth initiatives. In its core markets (Test and Measurement, Cell Site, Communication Equipment Manufacturers, WAN/Access Networks, Railway), the company has a strong position and sees opportunities to expand it further. Growth initiatives play a central role in medium-term business development and the company intends to clearly set itself apart through its own strengths and takes advantage of the above-average potential identified. Of the previous four growth initiatives, Aerospace and Defense (Industry), Data Center (Communication), Electric Vehicles (Transportation) and Small Cells, the latter will be merged with the Cell Site core market. Due to the high market dynamics in the mobile communications sector, customers make little distinction between macro cells or small cells when expanding or densifying their networks.

New organisation entails downsizing of Executive Group Management

The reorganisation will lead to changes to Executive Group Management. Reto Bolt will become COO of the Industry segment (previously COO Radio Frequency division) while Drew Nixon will become COO of the Transportation segment (previously COO Global Sales). The external search for the management of the Communication segment has been initiated. Until this has concluded, Urs Ryffel, CEO, will head up the segment for the interim period. Ivo Wechsler (CFO) and Patricia Stolz (CHRO) will remain members of Executive Group Management. On 31 December 2020, Fritz Landolt (previously COO Fiber Optics MCI), Patrick Riederer (previously COO Low Frequency division) and Dr Martin Strasser (previously COO Fiber Optics FDC) will step down from the Executive Group Management and remain in key management positions within the company. HUBER+SUHNER would like to thank the three members of Executive Group Management for their dedicated contribution, which has extended over many years, and their willingness to contribute their proven expertise to their new areas of responsibility within the company. Executive Group Management will comprise six people instead of eight once the Communication segment management position has been filled.

First-time financial reporting in new market segment structure from first half of 2021

HUBER+SUHNER will report in the new market segment structure for the first time for the first half of 2021 (including a prior-year period restatement). The figures for the 2020 financial year will still be reported by technology segment as before. They will be published at the media and analysts' conference on 9 March 2021.

Executive Group Management as from 1 January 2021

Three-dimensional model (3x3 strategy) with P&L responsibility at market segment level

You will also find this media release at: https://www.hubersuhner.com/en/company/media/news

This media release is also available in German. The German version is binding.

Patrick G. Köppe
Head Corporate Communications
HUBER+SUHNER AG
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Media release (PDF)