2011 Annual Report - 2012 Outlook

What happened in 2011 was what has been the norm for the 17 years this company has been in existence: The past business year was once again the most successful year for BD|SENSORS GmbH in its history. Success is normal.

It is planned to make 2012 a year of consolidation. Sales are scheduled to increase by less than 5%, which is unusually low for BD|SENSORS GmbH in light of past developments. The reasons for this reticence, or even caution, are the following:

1. Political Reasons

The EU financial crisis is nothing but a debt crisis in the public sector throughout Europe. It was caused by incompetent and irresponsible politicians, unfortunately also in Germany. There seems to be very little understanding, nor an awareness of injustice, let alone a willingness on the political level to quickly balance budgets and decrease debt in the medium term. This means that the EU financial crisis, or, more accurately, the debt crisis is by far not over, and the Euro is not saved by any means.

In addition, politicians are already unashamedly talking about increasing contributions and taxes; according to the local media, even with the approval of the public at large. Who, however, is the public at large that approved such plans? It is quite possible that the clientele of politicians, redistribution fetishists, public sector employees or public funds recipients are considered to be the "public at large". If they received a sympathetic ear, the hardworking and successful would be stuck with the bill, especially mid-sized companies and their committed employees. This is why BD|SENSORS has decided to wait and see what will happen in politics and the economy in the next few months, in order to initiate future-oriented activities and investments as positive signs are given.

2. Overall Economic Projections and Trends

Many industry experts projected that BD|SENSORS sales would stagnate in 2012, and some even projected that sales would decline. We will most likely be able to make up for this possible decrease in sales only with potential innovations.

For HR reasons and, what is even more important, for space reasons, it will not be feasible in 2012 to increase sales by opening up new markets and new industries, and only somewhat feasible in 2013.

3. Expansion of Business Activities in China and Russia

In view of the economic problems in the EU and the uncertainty of the Euro, BD|SENSORS would do well to focus in the near future somewhat more on investments in China and Russia, since the BDS Group has successful and prospering subsidiaries in both countries.

Conclusion

BD|SENSORS will continue to chart a successful course. For strategic reasons, however, sales and investments will only be increased somewhat modestly in 2012. BD|SENSORS is only planning one larger investment for 2012, a gas-operated block heat and power plant (BHPP) with combined heat and power generation. BD|SENSORS has made this decision based on objective research, because, different from other renewable energies such as solar or photovoltaic energy, heat pumps or even wind mills, BHPP operated with natural gas has a high degree of efficiency.

From a political or societal standpoint, the listed renewable energies may, at least at exposed locations, make complete sense and be necessary. BD|SENSORS would only consider a promising energy concept on the highest level, i.e. with the highest degree of efficiency, especially because natural gas will continue to be available in sufficient quantities in Europe for many decades to come.

 

Rainer Denndörfer

CEO - BD|SENSORS Group of Companies