VISIONPHILOSOPHIELEITSTZE

VISIONPHILOSOPHYPRINCIPLES

VISIONPHILOSOPHYPRINCIPLESIdeas, perspectives, and corporate principles

which shall jointly accompany, shape, and unite us.

9th edition Copyright 2012

by ifm electronic gmbh,Friedrichstrae 1, 45128 Essen

No part of this publicationmay be reproduced

without the prior permissionof ifm electronic gmbh

Remark on environment:This book is printed on non-chlorine bleached paper.

Forewords

Contents

1Vision

of a futureIntroduction 76

History and development of mechanisation and automation 77

Prerequisites for a positive development of the future 79

Vision of a future 80

2ifms

philosophyThe employees 92

Customer and market 94

The product 95

Expectations and consequences 96

3Corporate principles

of ifm electronicThe company 100

The employees 110

The corporate image 117

In 2007 the ifm management has adapteda few points of the philosophy which hasexisted since 1990 and had remainedunchanged since then.

In many cases of adaptation we aresimply following reality. The philosophy, forexample, pointed out that we would conti-nue the co-operation with our trade part-ners such as VEGA in the Netherlands orKhnel in Austria. This co-operation, howe-ver, does not exist any longer as the compa-nies have been sold.

The same applies to a change made inthe chapter Market. In our philosophy of1990 we limited the Asian market to Japanwhich was certainly correct from the pointof view of 1990. However, reality has over-taken us here in the meantime since ifm isinvesting immensely in all of Asia, is settingup new markets and will continue to do soin the future.

The principles and the philosophy ofour company have, of course, remainedunchanged. And the ifm management ofthe year 2007 wants to make it clear thatthey still stand by the principles which havebeen lived for many years, documentedsince 1990, and are now presented again inthis current version.

These principles are for us immovablepillars of our actions which serve as orienta-tion for each employee and each partner ofifm.

Many companies tend to adapt theircompany philosophy and principles to therespective management. That is a strategywhich ifm will definitely not support.Company philosophy and company prin-ciples are long-term and living ideas whichcannot simply be abandoned when amanagement changes. They are the soulof the company!

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Dear colleagues,Ladies and Gentlemen,

With this brief introduction we want todocument that we also respect and exem-plify the philosophy and the corporate prin-ciples of ifm and at the same time willdemand observance of these rules fromeach employee.

Wishing us all many more successfulyears to come.

Essen and Tettnang, in 2007

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Martin Buck Michael Marhofer

ifm electronic gmbh

Your management

Dear colleagues,Ladies and Gentlemen,

The ifm management has elaborated ideas, perspectives, and principles entitled: vision of a future ifms philosophy ifms corporate principles.The ideas contained shall influence andshape ifm and all its employees in theirmoral concepts and their conduct for yearsto come.

In order to clarify our approach someexplanatory remarks will precede the essays.

Vision:The questions on what our world will

look like in 20 years or even 30 years fromnow and what the demands on our com-pany and its corporate entity will be can-not be answered objectively by anybody atthe present time.

However, these questions are of greatinterest to all of us. Many of us will still beworking then. We would like to know notonly what prospects are on offer, but alsowhat security we can expect.

Some of us have children who withinthis time span will start their careers. Forthem an early orientation concerning theireducation and training is important.

Above all, we are all together responsi-ble for the future which takes social, eco-

nomic, and ecological aspects into consi-deration. We can only fulfil this responsibi-lity when we are aware of the consequen-ces of our actions and in time start lookingfor solutions and new ways to minimisetheir impact.

There are various reasons why ifmsmanagement has dealt with the questionsof how the world might develop in thefuture.1. ifm's development is directly connect-

ed with the development of our envi-ronment.

2. If we want to grasp opportunities wehave to find out where these opportu-nities can be found.

3. The attempt to view the future helpsto see the risks for ifm and to limitthem.

4. ifm's claim of being a special companycan only be fulfilled if we are betterprepared for the future than others.

5. It is important for the relationship bet-ween employees and management tohave a common or at least com-monly known idea of the possiblefuture of the company.The result of our consideration Our

Vision is what we want to present to you with the wish that you study it critically.

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We know that our vision is based onmany premises, and the resulting conse-quences are open to debate and cannotbe proven. The interpretation of some ofthese will not necessarily conform to eachreader's personal belief.

It was not and has not been and wewould like to emphasise this point con-sciously our intention to ask the questi-ons: Do we agree with the described world

of the future? Do we want to live in such a world? Do we even want such a world?

Neither did we consider it our task tothink about the future development ofpolitical structures or the elimination ofsocial problems although these questionsare undoubtedly of importance and greatinterest.

It was our goal to collect as muchinformation about the future as possible,to assess it, and to compare the conclu-sions of various experts with our ownimagination and with the actual experi-ence of what technical development hastaken place in just the past 30 years.

The results show fantastic possibilities ofdevelopment for our environment. Theymake clear and that is our particular con-

cern the tasks for ifm and the challengeand opportunity for the company and thatmeans for all of us.

The reflections about the history ofmechanisation and automation which weput at the beginning of our vision may,however, show you clearly that we havealready left a part of this technical uto-pia behind us.

Philosophy and corporate principlesThe philosophy summarises our basic

attitude to the cornerstones of our corpo-rate activities employees, customer/mar-ket, product. Since the founding of ifm ouractions have been determined by theseprinciples. They shall remain an obligationfor us and for all ifm employees.

In keeping with the corporate princi-ples we want to decide on standards forthe conduct of the company and itsemployees, valid for the long term, whichwe all will be compared with day after day.The standards are such, however, that thecompany and all its employees can readilyidentify with them in their contact withtheir environment.

Philosophy and principles conscious-ly mix existing company culture with our dreams.

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Of course we know that today's ifmcannot meet all the requirements im-posed by ourselves.

But it is our firm intention to work onthe extensive realisation of philosophy andprinciples with much patience, requiredenergy, and above all with your coopera-tion.

We wish you and ourselves that read-ing and having a critical look at Vision,philosophy and principles will not onlycause you to reflect on them, but that theymay inspire you with some of the confi-dence and faith that we feel is required forsustained and positive development of ifmand its employees.

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ifm electronic gmbh

Your management

Essen, June 1990

Robert Buck Gerd Marhofer Bernhard von Spiczak

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1Vision

of a future

76

Introduction

Sensing, networking, and control technol-ogy for the automation of a wide varietyof processes to humanise society is thecorporate mandate given to ifm by thepartners.

Working on this mandate will occupythe company for many generations sinceautomation is a task which has been withmankind for about 6,000 years.

This task of automation combinestechnical progress and technical revolu-tion. With the help of technology mankindis heading towards a future which alsoreferred to our mandate can only beimagined and understood in outline. There

exist already many technical prerequisiteswhich even today facilitate the work withwhich man earns his living. The future willcreate possibilities which from today'spoint of view might seem sheer fantasy.

This essay is intended to provide a bet-ter understanding and to facilitate thebelief in this fantastic future. From histori-cal development and from today's know-ledge we have derived a vision showingthat this company has every chance ofbeing successful and growing.

ifm wants to give its staff at all times afeeling of security based on the opportuni-ties outlined in this essay.

History and development

of mechanisationand automation

ifm and all of today's companies wouldnot exist if our ancestors had not startedtechnical development some 6,000 yearsago.

About 6,000 years ago the Sumeriansinvented the wheel.

This revolutionary invention was thebeginning of a technical developmentwhich is still continuing today. Again andagain new applications for the wheel areand have been found.

First it was just the cart that by meansof the wheel could be used for easier andquicker transportation of goods. (Thisinvention can certainly be classified asmechanisation. At the time it causedunemployment and hunger. Carriers orpack animals and their owners were nolonger needed.)

Numerous things were added laterwithout the wheel itself being changed ifyou disregard further technical develop-ment.

If you take a car for example, manythings are based on this invention, start-ing with parts of the engine, over gearand drive wheels for power transmission,from auxiliary aggregates to power trains,from the cog wheels in the gearbox tothe four visible wheels. The steering

wheel, too, can be put down to thisinvention.

In the early times spinning wheels,potter's wheels, water wheels, lifts etc.came into existence. The Italian Leonardoda Vinci (14521519) is considered to be the first technician who tried to createa connection between theory and prac-tice. Leonardo da Vinci saw himself firstof all as an engineer. He designed variousmachines for use in war, but also ma-chine tools, excavators, diving equipment,and much more.

In the 18th century with the beginningof the industrial revolution in Englandthe further technical development speed-ed up. It started the transition from theagricultural to the industrial society at thesame time changing society's structure.

The first automatic power loom ex-isted as early as 1784. It took until 1879for the first electrically operated loom toappear.

At the beginning of the 19th centurypartly automated machines were used inagriculture. In the 20th century we speakof the automated factory or the automat-ed office.

We are still very far away from auto-mation in the actual sense of the word,

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but possibilities are becoming more con-crete and understandable.

Technical development caused avariety of social changes.

So-called thresholds of civilisationoccurred in the individual periods of devel-opment. Crossing another threshold oftenresulted in big problems, unemployment,and poverty for the working populationconcerned. Riots (in later times strikes) anddestruction of machines and complete fac-tories were the result. This did, however,not stop technical development.

After each period of shock had beenovercome positive changes for the struc-ture of society followed. There were newprofessions. Goods could be producedmore cheaply. This resulted in higher con-sumption. The efficiency of the economyand the general standard of living in-creased.

Only continuous further developmentof the technical possibilities could in thepast conquer poverty and get rid of massunemployment. But the improvementswere not appreciated until much later.

Today we only work half the time asour ancestors did 100 years ago. We enjoysocial security and a standard of living that

leaves hardly anything to be desired. And it is here that we have to come up

with the following questions:Should we not work hard now to

make the future as good as the present?Can we consider ourselves safe or are

there not dangers lurking everywhere forour (relative) prosperity?

If one day we cannot sell our goodsany more because of lethargy, careless-ness, and arrogance, because other coun-tries produce more cheaply, offer a betterquality and provide the market with tech-nically better and more sophisticated prod-ucts the social problems will return anddestroy the perspectives for our future.

Therefore we have to start straightaway to work on a new education strategywhich includes technology. New technolo-gies should therefore not be condemnedand considered to be job killers. They offeradditional opportunities and open upvarious new possibilities for the world economy and for ifm.

With the knowledge resulting fromthe research and development work of thepast 30 years mankind is just passing an-other threshold of civilisation, and a newperiod of development is beginning.

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Prerequisites fora positive development

of the future

Up to today ifm has owed its existence andsuccess to the technical development and tothe imagination of the partners and theemployees.

Further technical development contin-uously produces new professions andmakes old ones disappear. In the same waynew companies are established and compa-nies with antiquated products and out-dated forms of organisation disappear fromthe market. Unless they have learned to beopen to new developments.

ifm is an example of the latter.Electronic sensors are replacing electro-

mechanical switches. This helps ifm to besuccessful. But if ifm does not have the far-sightedness and imagination to picture afuture demanding completely different solu-tions for sensor technology and automationand does not prepare in time for this futurewith its research and development, ifm willone day have to make way for a companywhose products are better suited to meetthe need of the market.

A successful future will be possible for our company because man will

withdraw more and more from executingwork.

During the first step machines androbots take over the production. Laterintelligent machines will be designedwhich monitor and control automatic pro-duction processes without human interven-tion.

Knowing of the challenges and contin-uously thinking about future demands,requirements and wishes of the market, dis-cussing and having a critical look at the tech-nical development will enable ifm and itsstaff to be better prepared for the futurethan others and to avoid risks.

ifm's field of performance has beenand will continue to be generally defined asfollows: to collect information and data to transmit them by fixed link or by radio to classify and convert them and make

them comparable to compare them with given set values to pass them on as commands neces-

sary to instigate corrective measures services around the above topics.

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Our vision does not assume that militaryconflicts and social tensions limited inspace and time that we are experiencingto a larger extent at the moment will leadthe world into chaos.

We believe and assume that in thelong run there will be international politi-cal and economic co-operation, security ofthe peace of the world and mutual toler-ance and support for the benefit of thepopulation of the entire world.

In this atmosphere social conditionswill develop which permit and in the endnecessitate that man relinquishes his cur-rent direct involvement in the execution ofproduction processes and transfers thisrole to the technical solution.

Man's job in the past was and will ofnecessity increasingly be to find furthertechnical solutions.

Technical solutions will in future be so complex that they cover severallevels on which processes are carried outautomatically, exclusively controlled bycomputers.

The following could develop:On the first hierarchical control level,

the so-called operational level, informa-tion is detected by sensors, passed on for

evaluation to assess the information andcompared with given set values. In case ofdifferences correction commands for reaching the set values are given automat-ically. When the set values have been reached completion report is made to ahigher technical level.

This is as far as ifm's mandate hasbeen defined.

On a second hierarchical control level,formed by the so-called disposition com-puters, the functions of several decentral-ised operating units are coordinated in accordance with given data and infor-mation.

Several disposition computers are allo-cated to an intelligent command com-puter of the third hierarchical control levelin which all expert knowledge available isstored and which because of its intelli-gence can take the necessary decisionsfor processes independently of all humanintervention.

In this or a similar way it will be possi-ble and that is already conceivabletoday to not only revolutionise the pro-duction process, but also many other tech-nical processes.

These will include automatic flying andnavigation of ground vehicles and

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Visionof a future

aircrafts, automated examinations anddiagnosis in medicine, far-reaching chang-es in communication engineering, furtherautomation of administration and stock-keeping and many other things.

Under these conditions mankind willmaster the future in a positive way. Andwe can expect a in the technical sense really fantastic future.

Many experts assume that in a not toodistant future the population of the Earthwill be 15 billion people. We have basedour considerations and future prospectson this figure.

Preparations have to be made that thisnumber of people to be expected does notlead to chaos.

ifm wants to help to keep and makeour world worth living in not only in thetechnical sense. This will result in a varietyof opportunities for a continuous positivedevelopment of the company and itsemployees.

15 billion people need enormous amounts of energy need to develop an agriculture and

nutritional industry that will not letanybody starve

will create industries that satisfy their

needs and use processes (e.g. recy-cling) which prevent an exploitation ofraw materials

will have transportation systems withwhich transport and distribution tasksfor men and goods can be solved safe-ly and fast

are entitled to good health up to theirold age by means of the best medicaltreatment available

expect us to hand over an environ-ment worth living in.If the technical solutions for these chal-

lenges are not found, mankind will ques-tion its existence. They will starve because they are not

able to support themselves.(Everything will go on as before. Thepopulation of the Earth, industrial pro-duction and production of food will inthe beginning increase rapidly. Thenext step will be a shortage of rawmaterials, industry and later wholenational economies will collapse.)

They will starve because the Earth ispolluted.(Even if sufficient raw materials can beprovided, a continuous growth ofindustry and unsolved waste manage-ment problems will pollute the Earth

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and contaminate the fields. The sup-ply of food will collapse.)

They will exterminate themselves in aworld-wide nuclear war.(Because man's unreasonablenessdoes not lead to convergent goalsand coordinated efforts, but causesmilitary conflicts for narrow-mindedadvantages and space for survival.)To ignore a far-sighted planning can

have tragic consequences for the futureof the Earth, and also for the future of acompany that wants to remain secureand successful.

The possibilities to keep the worldworth living in and functioning existalready. Highly developed national econ-omies do not have to make their deci-sions dependent on existing ways, butcan create their own methods and condi-tions to make their decisions successful.

The period of great discoveries isfinished. According to Nobel prize win-ner Sir McFarlane Burnet almost allimportant basic inventions have beenmade. Human inventiveness will nowhave to improve the existing technicalsystems by using this basic knowledge orto make new systems accessible forusing.

15 billion peopleneed enormous amounts of energy to

create the conditions for living.The generation of energy, however, is

only possible if a perfectly functioningindustry can create the necessary condi-tions.

From the large number of possibilitiesof producing energy two solutions havetaken shape as being feasible and suffi-cient. On the one hand the placing ofhuge solar reflectors in space, on theother hand the production of energyfrom nuclear fusion reactors that are sta-tioned in the sea like artificial islands.Here they find inexhaustible amounts of the ideal high-energy fuel salt water and at the same time plentiful coolingmedium for the waste heat.

There will certainly be other addition-al alternatives for the production of energy that will be discussed in the courseof time. No longer considered will betoday's energy sources such as coal or oil.The supplies of these fossil materials arelimited. Various contaminants are createdduring their combustion. Furthermore,they use up oxygen, oxygen which thisworld needs so badly for survival.

ifm's mandate:

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1. Analysis and processing of infor-mation on energy management ingeneral

2. Division of energy management intoindustries and analysis of the needs ofthese industries

3. Summarised assessment and recom-mendation for ifm's corporate policy.

15 billion peoplewill be capable of looking after them-

selves and feeding themselves by meansof the energy produced.

According to current knowledgeevery person needs an average of 0.9hectares of arable land for his needs,taking into account the conventional,agricultural method. The Earth altogetherhas a land surface of 3.2 billion hectares.This shows very clearly why today wholepeoples are starving. This situation willhave to change and a change can beaccomplished. Mankind's future supplywill be possible by using food/agrarianfactories, especially since the existing dis-tribution problems can also be solved.

The farmer will become a food chem-ist. This is an enormous threshold whichwill present many challenges. It will notbe easy to change 10,000 years of

farming, but the change represents anopportunity to survive.

In order to feed 15 billion people withgood quality food in sufficient quantitiesthe Earth will need six times as much foodas is produced today. Conventional agri-culture cannot achieve this. On its own itwill not be possible to eliminate hungerfrom this world.

New methods for raising crops willcomplement and replace the conventionalones. The moving from outdoor fields tothe light-flooded halls of modern agrarianfactories has already started. Food can beproduced everywhere on this Earth with-out farm land, and it can be harvested thewhole year round.

Providing food requires an incrediblylarge industry that gets part of the rawmaterial from the agrarian factories. Therest will be taken from the chemical sectorwhere raw materials for the industrial pro-duction of food can be obtained throughchemical and biochemical processes.

At the beginning of the next century50 % of the world's food supply couldalready be produced synthetically.

ifm's mandate:1. Analysis and evaluation of all informa-

tion on rationalisation and automation

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of agriculture, from automated stablesto modern agricultural machinery tothe agrarian factories

2. Visits and evaluation of modern foodproduction from agricultural factoriesto artificial production of food

3. Division of agriculture into industriesand analysis of the needs of theseindustries

4. Summarised assessment and recom-mendations for ifm's corporate policy

5. Provision of products that preventharm to our environment by agricul-ture and promote conservation.

15 billion peopledo not only want to live and eat.Technical civilisation has started an

immense development which could notbe stopped so easily and which shouldnot be stopped at all. A technical industryhas been created which supplies mankindwith all necessary goods for daily life andwhich furthermore provides all the luxurygoods that man needs for his so-calledlifestyle.

To list all these things, from newspa-pers to satellite television, from bicycleto car, train, aeroplane, and spaceship,from tooth brush to skyscraper, would

probably fill whole libraries.One thing, however, is certain:With all its splendid ideas finding a

raw material, using it for making a productand then selling this product in millions inorder to throw it away after extensive use mankind has forgotten one thing:Soon, there will be no more raw materials,and then there will not be any more newproducts, and our throw-away society willbecome a dying society.

Therefore it is time to interrupt thisvicious circle. The first steps on the way tobig recycling and processing methodshave already been made.

The only way to cope with our throw-away industrial society is to turn it into anatural cycle, as it does in nature. In thesame way that in nature a tree grows, dies,decomposes and thus provides the basicmaterial for the growth of a new tree civi-lisation must recycle the whole of industry.

The scale of the goods to be producedfor an Earth of 15 billion people reaches amultiple of today's requirements; thatmeans that the so-called recycling industrywill also experience an enormous growthrate. By means of more and modern tech-nologies this challenge must be and will besolved.

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One fact can already be noticed today:The raw materials not yet exploited aresufficient for the development of the non-industrialised countries of the Earth andfor the growing population if the scrapproducts of the industrialised world arerecycled.

To illustrate this it should be men-tioned that in the Federal Republic of Ger-many alone every year we produce 400million cubic metres of waste (approx.8001,000 kg for one cubic metre).

ifm's mandate:1. Further intensification of the existing

cooperation with the whole producingand processing industry

2. Elaboration and introduction of con-cepts for a long-term cooperation withindustrial partners and external re-search institutions in the field of techni-cal environmental protection

3. Analysis and evaluation of all in-formation on recycling industry, reuti-lisation and processing of industrialwaste

4. Division into industries and analysis ofthe needs of these industries

5. Summarised assessment and recom-mendations for ifm's corporate policy.

15 billion peopledo not want to be immobile.Traffic guidance systems have to be

established that will make the transport ofpeople and goods faster and safer despitethe incredibly higher volume of traffic andat the same time giving special consider-ation to the protection of the environment.

The world that we are heading for willno longer be comparable to today's world.There will still be rich and poor, butpoor in this world of 15 billion peoplewill mean a life with all technical achieve-ments and all social possibilities.

Thus, it could happen that individualtransport will reach a point where statisti-cally one citizen in two will have his ownmeans of locomotion, e.g. today's car.

That would mean that in this worldthere could be 7.5 billion cars or their suc-cessors. Based on the assumption that in afuture world individual transport will be ofthe same importance as in the 20th cen-tury other, additional methods will still berequired to transport people and goods.

But all these means of transportationwill have one thing in common: they will be ecologically harmless. Flights in the Earth'satmosphere will be replaced by means oftransportation on or below the Earth's

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surface at possible speeds approachingseveral thousand kilometres per hour. Thesolutions feasible today concentrate moreand more on magnetic cushion transport.

Transport between continents or around the world will possibly be carriedout in tubes at the afore-mentioned highspeeds (this will be physically possible witha vacuum being created inside thesetubes).

Regional routes with distances up to1,000 km will be carried out on overheadsystems (on stilts) and will pass the outskirtsof the big cities they are connecting.

The outskirts of the cities will beconnected either by routes on stilts orbelow the surface by means of cabins onmagnetic rail lines. These means of trans-portation and speeds guarantee smoothtransport of many people in a short time.

In the cities individual transportationwill be the most sensible solution. A solu-tion with magnetic rail systems is feasible.The user programmes his individual desti-nation and is transported there automat-ically.

Within large buildings or shoppingmalls vertical lifts and conveyor belts atvarious speeds, maybe even with seats,ensure further transport.

Long-distance individual traffic in theconventional sense will probably also existin this world of 15 billion people, but onlyfrom the outskirts of the centres of popu-lation.

Private vehicles will be parked in largeparking facilities at interchanges with thecity's public transport systems so that fromthere individual journeys can be continuedalong streets with electronic traffic guidan-ce systems.

Here as well destination, stops forsightseeing, speed, detours etc. are pro-grammed to ensure a safe journey acrossthe Earth.

This traffic solution allows an individualorganisation of people's leisure time in anatural environment and human contact tonature. Opportunities for individual trav-el will be reserved exclusively for leisureand holiday time.

Freight haulage will be carried out in asimilar way. The means will remain compa-rable. But dense underground transporta-tion systems will pass through the bigcities so that each individual building canbe supplied with goods. In their base-ments every building will have arrival hallsfor a further vertical distribution of therequested goods. These goods will auto-

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matically be delivered into even the smal-lest units in each building complex.

ifm's mandate1. Analysis and evaluation of all informa-

tion on traffic and transport systemsfor people and goods

2. Division into industries and analysis ofthe needs of these industries

3. Summarised assessment and recom-mendation for ifm's corporate policy.ifm's mandate is as diverse as all the

various forms of development previouslymentioned.

The traffic and transport system forpeople and goods is one of the mostimportant fields of development for ifm.

Inside the means of transport them-selves (inside the vehicles, e.g. inside the car),for the production of these vehicles andfor the means and ways of transport (e.g.routes for magnetic railways) an incrediblylarge number of different sensors will haveto be used.

Definition and development of thesesensors have only just started.

ifm wants to and will extensively partic-ipate in this.

15 billion peoplewant to experience the opportunities

that this world and society can offer in thebest possible health.

The people of a future society will behealthy into their old age. Infirmity due toillness will no longer exist. The end of a lifewill be determined by a failure of suchparts or functions of the body which infuture will remain irreparable or cannot bebuilt up.

There will no longer be any seriousinfectious diseases. The almost unlimitedreplacement of failing parts of the body bytransplants and an artificially stimulatedregrowing will be commonplace. And itwill be this extension of life in good healththat will make life worth living.

All this will be made possible by re-search and development in chemistry, bio-chemistry, biotechnology, and microtech-nology.

The technical sector will hold a sub-stantial share in the well-being of people.To preserve life, diagnose and treat disea-ses will not be possible without technolo-gy.

How could a doctor even today findout whether a patient is only sufferingfrom stomach trouble which might beremedied with a simple drug or has a heartdefect that can cause similar pains if he

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could not support and secure his diagnosisby an electrocardiogram?

Machines for diagnosing diseases, forrecommending therapies, for supportingand securing the treatment suggested bythe physician and for both perfectly carry-ing out and monitoring operations will bean essential component in the field ofmedicine.

In a world of 15 billion people the per-fecting of technical aids in the whole medi-cal sector is a basic condition for guar-anteeing a physically healthy person.

ifm's mandate:1. Analysis and evaluation of all informa-

tion in the medical sector from techni-cal aids to analysis, diagnosis, therapyand operation support

2. Elaboration of industries and theirneeds

3. Summarised assessment and recom-mendation for ifm's corporate policy.

15 billion peopleexpect us to hand over a clean world,

full of oxygen and worth living in.However thoughtlessly man has treat-

ed his Earth so far, in future he will have toensure that the mistakes of the past arecorrected and put in order. New pollution

and catastrophes will be prevented by con-tinuous monitoring of all processes andautomatic intervention when non-permis-sible changes occur.

According to a count carried out bythe UN, about 150 species of birds andvertebrates have become extinct since thebeginning of industrialisation. Another1,000 species are facing the same fate.Approximately 250,000 types of plants aredying out. The layer of gas which we breathe has been and is being polluted. InGermany alone every year 20 million tonsof dust, soot, and exhaust fumes areblown into the atmosphere dirt thatwould fill 800,000 freight waggons.

The ground on which we grow ourfood was and has been penetrated by poi-sons. Insecticides, fluoric chlorinated hydrocarbon (CFC's, propellants in aerosolcans), fluorine, hydrogen fluoride, sulphurdioxide, carbon monoxide, heavy metal industfall and many other poisons are distrib-uted world-wide through the emissionsfrom households, from means of transport,agriculture, and industry.

The water from which we get food is fullof acids and poisons so that some seafood is no longer edible and whole stretchesof inland water and parts of the sea

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are biologically non-viable or dead.Apart from his hunger man also needs

to provide for his thirst.Water as the most important part of

human life has to be continuously treated.But how thoughtlessly does man

handle this most important element.Waste disposal sites are the origin of

dangerous, water-contaminating residues.Chlorinated hydrocarbons (containingchlorine together with carbon and hydro-gen, used in many ways in industry andhouseholds), heavy metals, acids andphosphates, bleaching agents and whiten-ers contained in detergents penetrate intothe ground water.

In sewage plants in the Federal Repub-lic, for example, every year 44 million cubicmetres of sediment accumulate which to alarge extent are used in agriculture. But this means replacing one evil with anothersince heavy metals and chlorinated hydro-carbons contained in the sludge penetratethrough the soil into the ground water.

The amount of poison brought intothe natural cycle by chemical, steel-making, and machine producing industriesis so high that in a very short time interna-tional laws will have to be passed to stopthis madness.

All these negative circumstances of lifein the 20th century have to be cleared upbefore it is too late. The first signs are evi-dent and the obvious efforts to gain con-trol of these challenges and to clear themup bring us confidence that our world of15 billion people as compared to todaywill be a clean world worth living in.

Soil, water and atmosphere as well asthe complete energy production and industry will be completely monitoredautomatically.

It is impossible today to imagine thenumber of sensors which will be requiredto continuously register, evaluate andcompare all data and put into effect thenecessary steps to avoid any harm to theenvironment.

When setting the limits more andmore consideration will be taken of therequirements of nature rather than thoseof industry or agriculture.

Central institutions will receive region-al and national data on the environmentalcontrol directly via fixed link or radio forchecks, statistical evaluation, and recordkeeping.

Environmentalist will become a newprofession with rights ensuring directintervention.

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ifm's mandate:ifm wants to and will contribute its

share in all technical developments forcreating and maintaining a clean worldwith a plentiful supply of clean air andworth living in, not only from its corporatepoint of view, but also from its generalsocial responsibility.

Our vision gives only a tiny idea of theliving conditions on our Earth within aconceivable period of time.

Yes, you have read correctly. It will onlytake another few decades before ourpopulation has grown to 15 billion peopleand part of our ideas have become realityor the way has been prepared for evenmore utopian solutions.

Many readers will live to experiencethis world and that is good because thatway we can cooperate in achieving thegoals of keeping this world worth living inand passing it on in a good condition.

We all share in this responsibility!Our share in the accomplishment of a

world worth living in will on the one handbe part of our personal life. Hopefully an

even larger sense of responsibility witheven more consideration for the needs of our environment will develop.

Another contribution to the improve-ment of living conditions in a world of 15billion people is one that we can maketogether at ifm based on the corporatemandate as stated in the introduction.

It is our responsibility at ifm to followthis corporate mandate and remain awareof our responsibility for a humane environ-ment and place of work.

Our mutual chance of growing suc-cessfully in security will remain com-prehensible and a constant motivation forall of us.

Almost every human progress has start-ed by striving for a utopia.

At the beginning many forward-look-ing ideas were considered monstrousproducts of a sick imagination beforethey became reality.

That is why we want to conclude ourvision with a quote from David Ben Gurion:

Anyone who doesn't believe inmiracles is not a realist.

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2ifms

philosophy

We want to offer our employees the pos-sibility of a general orientation and pre-sent values that in the long run will be thebasis of our corporate actions.

The term philosophy refers to thevariety of thoughts and ideas that clearlyshow the attitude of the company to itsemployees, customers, and products.

We are firmly convinced that theemployees represent the biggest asset ofany company. The potential of this assetalso determines ifm's power and thusdetermines our success or failure.

Employees and company togetherhave to be interested in success since fail-ure for the employee means reduction ofincome or even unemployment and forthe company indebtedness or even bank-ruptcy which consequently forces thepartners into a hopeless situation.

Therefore the relationship of the com-pany to its employees and vice versa hasto be open and honest in order to mutual-ly achieve set goals.

The conditions for a trusting coopera-tion based on partnership are continuoustraining as well as hard and systematicwork to achieve the goals, and an honestand unquestioning sense of responsibilityon one's own initiative. Only then can the

company accomplish what it is aiming forand what in the long run will be absolute-ly necessary: the sharing of responsibilitiesamongst many people and decentralisa-tion of the decision-making processes.

ifm shall have many decision-makers.Not only the executives of a company arecrucial for the success for that wouldmean that only a few would be responsi-ble for the well-being of the company ,but each individual employee.

Exceptional success can only be achieved when the employees believe inthe company and when they know thatthey are treated in a fair and honest way.

Only then will it be possible that each individual takes over responsibilities and produces the best possible performancefor the company in an honest and hardworking way. People will respecteach other knowing that everybody carriesresponsibility and nothing would be possible without each other. Superiors willbe respected for their performance andnot for their position. If it were the otherway round this respect would not last.

This behaviour pays off for all employ-ees as well as for the company. Work with each other and not against

each other in all situations

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The employees

Treat each other openly, not dishon-estly or hesitantly

Aim at our mutual goals and not atdifferent ones

Help, not hinder each other.

There is no other way to permanentsuccess. Sensible handling of successresults in security and satisfaction for bothemployees and directors. Fear for one'sjob would not appear in such a company.

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The employee is the intermediary bet-ween the customer (and the market) onthe one hand and ifm on the other hand.

The customer, alone or together withour employee, develops a product requirement for solving his problems.

If ifm offers a product for solving aspecial problem and sells this product to asingle customer a limited market has beencreated. The individual customer receivesa product at a comparably high price.

However, it is ifm's goal to developand offer products for solutions that haveor create large markets world-wide thusachieving a production of large quantities,ensuring a continuous high quality andoffering to each customer a reasonable,low-price, high-quality product. On thisbasis custom-made product solutions canand shall be developed and offered.

World-wide ifm employees have todevelop a relationship of trust in closecontact with the customer which openlyand honestly considers mutual interests.

Only that ensures a long-term coop-eration.

The customer has to benefit from our

special know-how, our experience, andthe knowledge about our high-qualityproducts and their applications.

In return ifm receives orders.No customer will test a new applica-

tion with a bad product and no marketwill be created without an intensive perso-nal contact to the customer. In the ratingof our company the customer therefore isof similar importance as the employee; nocustomer, no market, and no market, nocompany, even with the most interestingand sophisticated products.

Each employee is responsible eitherin direct contact with the customer orwithout any customer contact because ofworking in the development, production,administration or any other department for doing everything to establish and keepa large market for ifm products.

Not to forget and ignore, of course,that our existing range of products de-signed for large markets also creates individual needs in the customer for whichwe need to develop suitable solutions.This also creates new and important markets for ifm.

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Customerand market

The product

A basic prerequisite for creating a marketis the range of products. Without a rangeof products a customer cannot be ad-dressed and needs cannot be met andthus no market can be created.

A company cannot exist without acompetitive choice of products. ifm'srange has been defined as sensing, net-working, and control technology for theautomation of a wide variety of processesto humanise society. All ifm products aredeveloped in accordance with our bestknowledge and experience. Long-termmonitoring and worst-case tests are partof our development and quality controlwhen products are to be provided forlarge markets.

The production will first develop suit-able test equipment and production aidsusing prototypes and preproduction runsand design and adapt automatic produc-tion machinery. In small series they willthen try to achieve a constant productquality to ifm standard.

Only when all given conditions havebeen met will full production of large seriesbe started.

Constant product quality is also guar-anteed by ifm's material handling. All partsand components used are procured inaccordance with specifications; they areconstantly checked for conformity with theset quality standards and are made avail-able for production in sufficient quantities.

A substantial part of the quality assur-ance will be the qualification of the sup-pliers and the review of the adherence toquality regulations at the supplier's.

It is only this extensive procedure thatresults in a product as sophisticated as theone that the customer is used to from ifm and that he can also expect to get infuture.

But this helps the company to keepmarkets open by means of the reliabilitythat our products offer to the customer.

Quality and performance of ifm prod-ucts are exemplary.

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Success will only be permanent whenboth the company and all staff make thephilosophy the base of their activities andput mutual expectations into action.

ifm does not just stand for the com-pany or the group of companies. ifm isnot just a name.

ifm that is all of us.We all live on ifm's success.We are all in the same boat going in

the same direction.Our dream for this company can only

come true when we set down to workwith energy, optimism and without aut-horitarian ideas and arrogance and with aclear motto.

This motto for each and every one ofus is:

I can do it!

That means that each individual employee on his

own takes the initiative in the sense ofthe corporate philosophy

that each individual employee thinksand thinks ahead in the sense of thecorporate philosophy

that each individual employee worksintensely and with commitment in thesense of the corporate philosophybecause he has discovered the senseof what he is doing

that each individual employee in thesense of the corporate philosophy iswilling to help, and conveys that toothers

and finally that each individual employ-ee is willing to take over responsibilityto fulfil the corporate philosophy.

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Expectationsand consequences

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3Corporate principles of

ifm electronic

3Corporate principles of

ifm electronic

Guidelines for activities and conduct

of the companyand its employees

The company 100

Corporate mandate 100

Market 102

Technology 104

Capital 107

Advertising 108

Survival 109

The employees 110

Executives and management 113

Organisation 115

The corporate image 117

Corporate mandate

ifm will always be true to its origins

ifm wants to offer outstanding productquality, service, and reliability

We mean what we say and we act accord-ingly

ifm's intention is to be an internationalcompany treating the world as a singlemarket

We want to grow successfully in security

ifm promotes the optimising and/or solv-ing of technical processes by offering sensors, system communication, control-lers, and engineering services in all mar-kets all over the world

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The company

ifm is striving for success by establishingand keeping uncomplicated entitieswhich work independently, in their ownresponsibility, and successfully

ifm considers itself a market and custom-er-orientated company. The market pro-vides better answers than all managementtheories

We do not want to be restricted to consid-ering things from only one angle. Lowcosts without quality and service are asbad as quality and service that cannot befinanced and leave no profit. However, wewill always meet special requirements withspecial attention

ifm intends to be an optimistic company.Optimism demands action, pessimism isan easy excuse for being idle

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ifm is a globally orientated company. Thecentres of our activities and investmentsfor the foreseeable future will be in Amer-ica, in Asia and in Europe. However, wewill not close our minds to opportunitiesin other markets

ifm does not only intend to cover visibleneeds, but also directly creates needs bydemonstrating new applications

ifm is looking for the best possible struc-ture of representations and ifm engineersfor the sales work in America. Devotionand loyalty to our representatives are ofequal importance as a direct, continuoussetting up and extension of our own salesorganisation

ifm wants to expand consistently in Asia.The unique features of this marketdemand extraordinary efforts in providingspecific products at competitive prices.ifm will be prepared for these demands

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Market

ifm will try to transfer the concept of thesales network in the Federal Republic ofGermany with its branch offices and areaoffices to other countries taking intoaccount specific national requirements.Continuous communication with thebranches shall help to further optimise thesales system

ifm has a special attitude towards itscustomers. We will continuously try tomake this special attitude clear to all ourstaff no matter in which part of thecompany they might work. Each employ-ee whether directly or indirectly is asales person

ifm wants to provide exemplary activecustomer service as a matter of course

In continuous, intensive training ifm wantsto prepare its staff in technology and salesfor the growing and often chang-ing customer requirements and thus ensure a flexible, innovative reaction tochanges in the market

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ifm intends to work exclusively in productareas which are technically comprehensi-ble and seem manageable with our levelof knowledge

In principle ifm wants to be able to offerproducts world-wide

ifm wants to achieve and keep a reputa-tion as a technically flexible, innovativecompany

Continuous high expenditure for researchand development together with a highlevel of commitment shall consolidate ourtechnological lead as compared to ourcompetitors and strengthen our positionin the market

Investments into own production technol-ogies such as the film technology and themodular technology will also be promo-ted in the future in order to produce effi-ciently on a high quality level

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Technology

A manufacturing process supported bydata processing and connected by net-work to other parts of the companyshall ensure high flexibility and optimumquality

High product quality and accurate techni-cal data are unimpeachable values of ifm

Quality must be part of our lives. All ifmstaff need to be a living proof that onlyperfect ifm products exist

Quality and cost discipline, in our opinion,are not contradictory, but complementand promote each other

Flexible material-handling is a prerequisitefor a flexible production

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A basic mandate of material-handling istherefore to avoid any kind of waste

In principle ifm will not develop, produceor sell products which directly serve mili-tary purposes

We need ifm-orientated pure researchseeking cooperation with external insti-tutes, universities or large industrial companies in order to gain progressiveknowledge

Product developments at ifm follow astrategy which can be maintained andjustified in the medium run. Diverging andsudden market trends and competitivedevelopments should not lead us to just copying competitive units without thinking and without our own marketingconcept

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ifm intends to create security and inde-pendence by means of an equity capitalsuitable to the size of the company

Profit is an indispensable reward for theperformance of a company

Growing profits are a necessary prerequi-site for a secure growth

Profits are ploughed back into the com-pany by the partners in order to create thenecessary funds for the capital require-ments of the company

Increasing returns can be better thanreducing costs

The performance of each individualincreases or decreases the success of ifm.Each employee shares in the responsibilityfor the success of the company

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Capital

ifm's advertising has to be truthful

ifm's advertising should be clear, mean-ingful, innovative, aggressive, and of highquality

The ifm group of companies and its rangeof products and services need to be pro-moted in advertising as one unmistakableconcept

ifm identicom and all companies belong-ing to the ifm group of companies havethe joint obligation to build up and keepan intensive, image promoting coopera-tion

This cooperation is based on the tolerancetowards country-specific differences inadvertising and the respect of the centralresponsibility of ifm identicom to theirform and quality level

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Advertising

Each growing company has to take risksto work successfully. Partners and man-agement will only take such risks that arein the interest of normal business activi-ties and the size of which is suitable toifm

In a competitive market there is no securi-ty without continuous struggle. ifm is pre-pared for this

Partners and management will endeav-our to make ifm's structure concerningrange of products, customer variety andsize, and variety of industries as secureas possible in order to be able to meetworld-wide changes in the economicsituation and different developments ofthe individual industries in a flexible way

Partners and management are aware oftheir responsibility to make use of theexperiences of the past in order to masterthe future

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Survival

We respect each individual employee

All employees appreciate human sympa-thy. ifm feels committed to this principle

Motivation of employees starts with set-ting goals. If these goals are attractive andattainable they will act as motivators.Goals outside our reach lose this function

Each employee is a source of new suc-cessful ideas. ifm wants to promote therealisation of new ideas by supporting thewillingness to take risks and by understand-ing and accepting unsuccessful attempts

ifm wants to have independent employ-ees. Independence is based on discipline.

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The employees

Discipline means to accept our commonunderstanding and to observe the guide-lines that constitute our scope of action

ifm guidelines are positive. Employees arenot restricted by rules, but encouraged tounderstand and use their scope of action

Through their conduct employees be-come positive, unmistakable flag bearersand ambassadors for ifm world-wide

ifm has multinational executives andemployees and is prepared to accept theways of life and cultures of the individualcountries

ifm trains young people with the goal ofoffering them a secure, interesting, and challenging job

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ifm wants a long-term relationship with itsemployees and promotes and encouragestheir abilities and willingness for theircareer within the ifm group of companies

ifm offers secure jobs for all employees. ifmwants to overcome temporary fluctuationsin the job market depending on economi-cal developments at the cost of the result,not at the cost of job losses. This does,however, not mean a job guarantee at allcost. In the case of bad structural develop-ments in the company or of long-termchanges on the market the management isobliged to take countermeasures in timefor the benefit of the whole ifm, even if thiswould mean a reduction of jobs

Sound leadership in management isbased on comprehensive information. ifmexecutives and employees have the rightto information. However, they also havethe duty to keep themselves informed

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In their personal conduct ifm executivesshould set examples for all employees

ifm executives are critical and self-critical

ifm wants to establish a real, functioningbasis of trust between management, exec-utives, and employees by providing com-prehensive information and by a construc-tive exchange of opinion with the com-petence to make decisions

Executives have to promote their ideas,also and especially with their employees

A little bit of futurology is necessary forexecutives

Everybody needs praise and recognition employees and executives

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Executives and management

It might be possible sometimes to buy theemployees' sympathy. However, it is notworth much if it is not given out of peo-ple's own free will

ifm executives are prepared to delegateresponsible jobs to their staff. Delegationof tasks demands and promotes trust andsense of responsibility. ifm executives arenot afraid of endangering their own posi-tion by delegating; they free themselvesfor new challenges

Executives and employees keep agreedarrangements and respect set dates

It is a matter of course for management,executives, and staff to cooperate in har-mony. Constructive disputes might arise indiscussing an objective solution of prob-lems; they should, however, never hurtpeople's feelings

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Nobody at ifm, neither superiors nor staff,has only rights. Each of us has to be awareof his duties

ifm employees assess themselves and areassessed on a regular basis in accordancewith uniform, transparent standards. Theresults of the assessment are comparedand openly discussed with each employeeand used as a basis for promoting thisemployee

Regular training is intended to form, chal-lenge, and promote executives andemployees in all parts of the company

By accepting and respecting others ifmcreates the prerequisites for a permanent-ly simple, efficient organisation

Organisation is a service for the employ-ees. It should amount to nothing morethan a few important basic rules and clearresponsibilities

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Organisation

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Organisation for us means:

Fight bureaucracy

Organisation needs to simplify and mini-mise interfaces in the company

Centralisation and decentralisation needto have their justification at ifm

Organisation needs to combine specialknowledge and experiences of employ-ees. This means willingness to be flexibleand mobile concerning the forms of orga-nisation

The organisation and this includes IT must never exist for itself. It is andremains a service institution promot-ing the cooperation of employees

ifm wants to promote and keep an inten-sive, lively business culture

By means of an independent, unmistak-able style in the conduct of its employeesand in the image of the company ifmwants to make the corporate principlesclear and understandable for everybody

We want our ideals concerning quality,product and the customer to be unalter-able. They are accepted as binding by allifm employees without compromise andare the permanent basis for their activities

ifm representatives are good listeners.They shape the image of ifm by the wayof their appearance and by their outerappearance as well as by their missionaryenthusiasm and commitment

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The corporate image

ifm demands and promotes ecologicallyconscious decisions and conduct

ifm tolerates civic involvement

ifm intends to be a moral company

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