STRATEGY 2030

Three strategic cornerstones create the guidelines for the further development of our Group: We aim to maintain our core business, build a new business segment, and ensure sustainability.

MAINTAINING OUR CORE BUSINESS

For decades, our core business has focused on energy. With our high-quality products and solutions, we contribute to safe, environmentally friendly energy production. Today, they are mainly used in the oil and gas industry.

SBO is the global market leader in manufacturing of high-precision components made of non-magnetic, high-alloy stainless steels. The Group is also a leading global provider of high-efficiency drilling tools and well completion equipment for the oil and gas industry. Know-how developed over decades and intellectual property protected by patents, as well as product and process innovations, including the Direct Metal Laser Sintering (DMLS) 3D printing technology, support our leading position both in the industry and in other sectors. The SBO Group consists of highly specialized, medium-sized industrial companies that are leaders in their respective market niches. Due to our cuttingedge technology and high quality standards, our niches are well protected and leave space to only a few competitors.

Our DNA consists of innovation and speed. We act according to the “Quality First” principle: our core competence is to develop, produce and market sophisticated high-quality products with a USP (Unique Selling Proposition) that create added value for our customers. We differentiate ourselves through technology and ongoing research and development. Our innovations create a measurable advantage for our customers.

In times of climate change, energy supply security plays a key role. As a bridging technology, gas in particular will make a significant contribution to reducing global CO2 emissions while at the same time meeting the rising global demand for energy.

In the field of Oil & Gas by 2030 we aim to

• defend our market-leading positions

• continue to invest in research & development or bolt-on acquisitions

• generate high cashflows as well as liquidity and maximize value (value strategy)

BUILDING A NEW BUSINESS SEGMENT

A key element of our Strategy 2030 is to build a new segment outside our current core business. To this end, we aim to use our existing capabilities, identify new business areas and, if appropriate, invest. The purpose is to create a new business segment delivering a significant additional profit contribution.

By 2030 we aim to

• further expand existing diversification initiatives in areas such as aerospace, geothermal and in other industrial sectors

• make strategic investments or acquisitions, preferably in the fields of energy transition and green tech industries

• build a new business segment that will account for 50 % of Group revenue in the long term

The new business areas should fit our basic strategy and therefore fulfill the following criteria, including a leading market position in a niche business with high entry barriers (know-how, technology, customer contacts, distribution system, USP, etc). Moreover, they should deliver long-term growth potential combined with sustainable profitability. In addition, investments in startups that have the potential to meet the above criteria in the foreseeable future are an option.

ENSURING SUSTAINABILITY

Responsibility for ESG (Environment, Social and Governance) criteria is deeply rooted in the business activities of the SBO Group and has been firmly entrenched at all levels of our Group for years.

Going forward, we strive to remain a long-term attractive business partner and employer and work on key issues, such as expanding our product portfolio, optimizing internal energy use, employee diversity and developing new incentive models. As part of the strategic goals, relevant measures are planned to support the company’s path toward net zero.

By 2030 we aim to

• further reduce the already low total amount of greenhouse gas emissions (CO2) produced by our business activity, therefore:

   • continuously optimize and digitalize processes

   • invest in renewable energy sources at our production sites

• expand our business by further ESG-compliant business areas

• continue to invest in our most important asset, our employees:

   • by providing specific training and upskilling measures

   • by offering our award-winning, on-the-job apprenticeship training

• within our quality strategy, strongly focus on the diversity of our team by further driving up the quota of female managers and promoting the already high ethnic diversity among our teams

Moreover, we will implement an ESG policy defining Group-wide internal requirements to complete our Code of Conduct. We will further strengthen ESG communication toward customers, employees and the capital and financial markets and strive for competitive ESG ratings.

IN A NUTSHELL

Energy is and will remain our business. In the coming decades, as in the past, we want to be at the forefront of shaping the future of our industry. Along the way of global net zero initiatives, we will provide our high-tech products to contribute to a secure energy supply for the world and, at the same time, invest in energy transition and green tech. We aim to use our capabilities and know-how to drive forward tomorrow’s energy solutions and create added value: for the world, by actively contributing to a clean and secure supply of energy; for our stakeholders and employees, by not only securing our existing business, but also in the long term by generating around 50 % of Group revenue primarily in clean energy technologies. Our Strategy 2030 provides a clearly defined framework for action to achieve this transformation.

Sustainability ist reported as part of the annual reporting.