A CEO Paints The Moon Pink Achim Lutter

A CEO Paints The Moon Pink Achim Lutter @ MGIMO 22. 10. 2012 1

Start-up 1995 Aquisition of a Copperplant Fall 1997 Mafia steels the Plant Fighting Up on the Feet again! 2000 founding of Bau. Tex 2

Lost everything Oh, my God, If You exist up there, you made a mistake! 3

Lessons learnt • don’t deal with the wrong people, no matter what trust your stomach feelings • do the right things right: no „krisha“ no offshore no bribing • don’t trust the big law firms 4

Risk of Big Clients „We do not need your product anymore“ your main client 5

Risk of Big Clients • • Negotiations skills Building a partnership relationship Never more than 40 % to one client Diversify 6

Risk of big Suppliers • Prices up 50% next month ! St. Gobain 7

Quality Suppliers • Everyday one container from China • The pipeline full of poison 8

Quality Suppliers • Invented a new product line to process the waste • Quality control at the root 9

Big French International „My lawyers tell me, we do not have a contract anymore“ If you want our glassfiber in 3 weeks any longer you have to pay USD 2, 5 mln Genis Arnaud, CEO St. Gobain Glassfiber 10

The year 2011 • • • Consumption 20. 000 tons Glassfibers 600 employees Aquisition of the plant in Pabianitse in Poland 80 mio m 2 Glassfabrics Turnover € 35 mio > 40. 000 m 2 Production area 45 % growth ISO-Certification Acquisition of plant from Johns Manville Oscarström, Sweden 11

Development 2012 • Turnover goal € 45 mio • Introducing IFRS • Build-up of an SMC-Technicum: 3 big presses • Re-engineering of main products • Increase of productivity • Increase of effectivity 12

Net Revenues (thousand USD) 60, 000 56, 541 43, 566 50, 000 40, 000 30, 038 30, 000 19, 507 16, 120 20, 000 9, 542 13, 652 10, 000 0 2. 006 2. 007 2. 008 2. 009 2. 010 2. 011 Forecast for 2012 13

www. bautex. ru Sell to your clients and not to the local administration keep low profile there are no free lunches 14

Production 15

Production 16

Production 17

Production 18

Production 19

What does a good CEO do right? 20

• Have discipline homework techniques applied 21

Your Partner • Choose the right Partner handle your Partner with greatest trust with total respect with great carefulness • with explaining and reasoning positions • with a total readiness to change the position if the partner has the better argument 22

Integrity • Be integer be real be true in what you say this will be your strongest asset with your colleagues, your clients, your partner, your suppliers Communicate the bigger common benefit! 23

• Be always curious why do things go well? what can be done to repeat success? in which other areas could this be applied? or why did something go wrong and what can be done to weed out this mistake fundamentally? • Look at the fundamental aspects of the matter 24

• Be visionary you have to start the next initiative re-engineering re-organizing the matrix re-empowering the managers MORE Think Pink - Paint the moon pink ! Which areas to grow? What is tomorrow‘s business model? 25

• You have to inspire do sports go to theaters and exhibitions sleep enough come into the office with good energy and be fresh you have to set free a fluidum in your company 26

• Interviewing is Moulding • „It is the biggest opportunity to engage a new colleague to the set of values and ideas of your company“ • Create a Team, trust your people • Together you formulate the strategy and you support the idea‘s execution and listen to your team 27

Take on chances and make speeches We never wait There are no problems Prepare for negotiations like in a chess game 28

• Be very, very sensitive - Tonus ! The devil‘s Advocate you have to smell the first 29

Tonus • it could be a shift in the market • it could be a team of key people leaving setting up their own competitive shop • it could be a major client or supplier trying to sqeeze you out • it could be a hostile takeover • it could be just another ordinary worldwide financial crisis • you have to react earlier than the others and you have to be ready for this reaction and the change 30

Plant aquisition No one grants you a chance – so grab it and be fast ! Networking and Friends 31

Thank you for your attention 32