Pressalit A/S: Written Exam After 1 Semester Emester

Bachelor of International Sales and Marketing Management
Professionsbachelor International Handel og Markedsfring
Pressalit A/S
Written exam after 1st semester
Skriftlig eksamen efter 1. semester
The basis for the companys sale / Virksomhedens salgsgrundlag/
13 June 2012 / 13. juni 2012
08.30-14.30
This exam case consists of 4 assignments carrying the following weights in the total assessment of
the paper
Dette opgavest bestr af 4 opgaver, der indgr i bedmmelsen af den samlede opgavebesvarelse
med flgende vejledende vgte
Assignment/Opgave 1: 25 %
Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 1

Assignments: (In Danish below)

Assignment 1 (25%)
Assignment 1.1. (20%) How does clause 4 and 7 in Pressalit terms of sale and delivery devi-
ate from the CISG? (see Appendix 4)
Assignment 1.2. (5%) Mention which securities Pressalit might demand as other satisfactory
security as mentioned in clause 5 in Pressalit Terms of sale and delivery.
Assignment 2 (25%)
Assignment 2.1 (10%), Financial benchmarking.
a. Please brief relate Pressalits key ratio to their statement in "The Eight Focus Areas" and to
their goals for growth listed in Appendix 1
b. Make a Financial Benchmarking between Pressalit and Geberit containing areas of profitabil-
ity, liquidity, solvency and efficiency. Please make a conclusion.
Assignment 2.2 (15%), Customer Rentability.
Please calculate the missing information in the table ABC Customer Rentability Analysis and
then analyze and evaluate the table.
We expect you to support your analysis and evaluation with theory and graphic illustrations
showing the cumulative profits for each of the customer segments as well as the ranking of
each customer segment according to their contribution to the total profit.
Assignment 3 (25%)
Based on an analysis of the business model and the corporate strategy you are requested to
assess the core competencies of Presallit and the overall value proposition that is marketed to
the customer, management and employees.
Assignment 4 (25%)
Assignment 4.1 (10%) Give your assessment of the company's CSR policy.
Assignment 4.2 (15%) Give your assessment of the company's supply chain and suggest po-
tential areas for improvement.

Sprgsml p dansk
Opgave 1 (25%)
Sprgsml 1.1. (20%) Hvordan afviger punkt 4 og 7 i Pressalit salgs- og leveringsbetingelser

fra CISG? (se Appendix 4)
Sprgsml 1.2. (5%) Nvn hvilke sikkerheder Pressalit kan tnkes at kunne krve som an-
den tilfredsstillende sikkerhed som nvnt i punkt 5 i Pressalit salgs- og leveringsbetingel-
ser.
Opgave 2 (25%)
Sprgsml 2.1. (10%), Financial benchmarking.

a. Du bedes kort forholde Pressalits key ratio til deres udtalelse under The Eight Focus Areas
samt til deres ml for vkst nvnt i Appendix 1.
b. Foretag en Financial Benchmarking mellem Pressalit og Geberit som indeholder omrder-

ne rentabilitet, likviditet, soliditet og effektivitet. Du bedes foretage en konklusion.
Sprgsml 2.2. (15%), Customer Rentability.

Du bedes beregne de manglende oplysninger i skemaet ABC Customer Rentability Analysis og
herefter foretage en analyse og en vurdering.
Resultatet af din analyse og vurdering skal underbygges med teori samt grafiske illustrationer
der viser svel den akkumulerede profit, som placere de enkelte kundesegmenter i forhold til
deres bidrag til den samlede EBIT.
Opgave 3 (25%)
Med udgangspunkt i en analyse af Presallits forretningsmodel og virksomhedsstrategi bedes du

vurdere virksomhedens kernekompetencer og den vrdiskabelse der markedsfres overfor
kunder, ledelse og ansatte.
Opgave 4 (25%)
Sprgsml 4.1 (10%) Giv din vurdering af virksomhedens CSR politik.
Sprgsml 4.2 (15%) Giv din vurdering af virksomhedens Supply Chain og foresl mulige for-
bedringsomrder.

Content:
Indhold
Content: ............................................................................................................................................................. 4
Pressalit History ................................................................................................................................................. 5
Company values................................................................................................................................................. 8
We listen ........................................................................................................................................................ 8
We give .......................................................................................................................................................... 8
We play .......................................................................................................................................................... 8
We act............................................................................................................................................................ 8
Vision and mission ............................................................................................................................................. 9
Mission .......................................................................................................................................................... 9
Vision ............................................................................................................................................................. 9
Focus Areas .................................................................................................................................................... 9
The Eight Focus Areas .................................................................................................................................... 9
Business Areas ................................................................................................................................................. 10
Pressalit Seats .............................................................................................................................................. 10
Pressalit Care ............................................................................................................................................... 10
Production and production development ................................................................................................... 10
Corporate Social Resposibility (CSR) ................................................................................................................ 10
Global Compact and Code of Conduct ........................................................................................................ 11
The Ten Principles .................................................................................................................................... 11
Supplier Requirements ................................................................................................................................ 12
Financials ......................................................................................................................................................... 13
Appendix 1: Pressalit to create growth in new markets ................................................................................. 15
Appendix 2: We are old school .................................................................................................................... 16
Appendix 3: FACTS Five pieces of good advice from Pressalit...................................................................... 17
Appendix 4: Pressalit terms of sale and delivery (excerpts)/ Pressalit salgs- og
leveringsbetingelser (uddrag) .............................................................................................................. 17

Pressalit History. 1
Pressalit was officially founded in 1954 but actually started a couple of years previously in the Danish fish-
ing port of Esbjerg. The story goes that two carpenters were clearing up in their workshop after work when
a cat brushed against a pot of glue, knocking it over. The glue dripped down the side of a hot radiator and
onto sawdust lying on the floor. The result was a new material with a lot of potential - as confirmed by a
chemical engineer called Nielsen who was asked for his opinion. Two years later, Pressalit was on its way.
The new company was based in the inland town of Ry, solely because it was here that one of the two car-
penters hailed from. He was well-known and respected in the town, to the extent that the local bank was
quite happy to loan him start-up capital for the new firm. This was used to invest in a small, low factory
building situated in a former fruit plantation, and for the acquisition of modest production equipment (in-
cluding a dough mixer from a bakery to mix powder). Despite the humble beginnings, the company ambi-
tiously took the name Danish Pressalit Industry ("Dansk Pressalit Industri").
Its first product was toilet seats made from the wondrous new material, and to sell them, a man who knew
the plumbing trade inside-out was recruited. His name was Martin Jensen, who was hired in 1954 and
quickly became a partner.
But it wasnt until the 60s that things really began to happen that would have a permanent impact on Pres-
salits future, when Mogens Boyter (the son of Martin Jensen) who had just completed business school,
joined the business in 1962. He decided to build up an export trade for Pressalit, with Germany as the first
market.
In 1966, Pressalit presented its first designer seat, the Pressalit Comfort. The story behind this seat started
when the renowned designers, Sigvard Bernadotte and Acton Bjrn, were commissioned to design a radia-
tor valve for Pressalit (a potential area that was quickly abandoned). These two were already well-
established thanks to designer products such as their Margrethe Bowl, and asked if they could present their
ideas for the toilet seat of the future. The result was the Pressalit Comfort a highly unusual seat at that
time, that as with all radical designs, divided those who saw it into two camps: they were either delighted
and impressed, or simply could not believe that someone could come up with a design for a toilet seat that
looked so weird and yet was so expensive! But fortunately, most were impressed and Pressalits tradition
for design was born almost by accident
But it was the Scandinavia model (1975) the work of Sigvard Bernadotte and Acton Bjrn once more
that really put Pressalit on the map. This seat was a huge success and represented a real breakthrough for
Pressalit, not least on the export markets. Exports now accounted for over 50% of sales and the following
years saw the establishment of the first foreign subsidiaries in the UK (1977) and then Germany (1978).
Pressalit was well on the way to become an international brand.
Back at the factory (no longer a small affair!) things were really starting to happen, as production capacity
topped 1600 items per day with 8 models in 30 different colours.
In the mid-70s a newly-qualified architect contacted Pressalit to see if the company might be interested in
her thesis design project on bathroom products for the disabled. Coincidentally, Pressalit had already re-
ceived enquiries from local hospitals for just such products, and there were also other factors that prompt-
ed Pressalit to give serious thought to such a secondary product range. Once again, the decision to go with
1
The case is based on information from http://www.pressalitgroup.com/pressalitgroup/en-GB

a product could be described as coincidence or good fortune.
A number of years were to pass before what were referred to as Rehab products were given the name of
Care (around the same time that the Multi System range introduced products that carried on the compa-
nys design traditions). And yet more years were to pass before Rehab/Care became a viable business.
Pressalits products were distributed (as they still are) via the plumbing industry in the form of builders
merchants and onwards to plumbers themselves professional tradesmen of the same ilk as bricklayers,
joiners, painters and decorators etc - who specialise in plumbing installations for water, heating, ventilation
and sanitation in new buildings and refurbishment of existing systems. But selling directly to the end-user
was neither something the company considered or was geared to do. On the other hand, the same end-
users had an identifiable need and there was demand for products for the Do-it-Yourself (DIY) market. And
this new market gave rise to one of the most rapidly-growing forms of retail outlets - the DIY store. These
were builders merchants that sold everything that could be used in the home, including: timber and iron-
mongery, paint and painting accessories, electrical items and plumbing articles, such as taps, pipes and
toilet seats. Rapid growth for this new sector was assured and the balance between professional plumbers
and the DIY enthusiast rapidly swung towards the latter. As a reaction to this trend, SaniScan was estab-
lished in 1982 as a subsidiary, which also sold toilet seats but exclusively to the DIY market.
Pressalit continued to expand its product range and became a true brand name, rapidly growing in confi-
dence and stature. We can put our name to it was the title of a brochure published in the 80s, in which
one of the most prominent models was the Lepoix (by the French designer of the same name) with the
Pressalit brand inlaid in silver or gold with matching hinge colouring.
During the 80s, Denmarks national balance of payments sank deeply into the red, reaching a low of DKK 29
billion in 1985. None of this of course was Pressalits fault, as the same year exports accounted for 75% of
all sales! The following year, the DKK 100 million milestone for sales was passed, and as turnover continued
to grow, it made ever increasing demands of the factory and production facilities, stimulating new ideas
and in 1985 Project 85 was launched. This involved computerisation and the introduction of new tech-
nology, with simultaneous training for the personnel. By 1989 a totally new plastics factory was completed,
with computer-controlled presses and robots to take over the heavy manual labour.
Production facilities remained in Ry whilst administration and sales relocated to Aarhus, Denmark's second
city, to premises in Augustenborggade. The offices here were rented and soon became inadequate for
Pressalits needs. By the late 80s, the decision was announced that administration would be relocated to Ry
in new, purpose built premises to the east of the town, a short distance from the factory. The new building,
referred to as Maglehj after the ancient burial mound of the same name nearby, was completed in the
summer of 1991, and the approx. 50 employees were able to move from their slum in Aarhus to the
comparatively luxurious conditions that awaited them in Ry, with a view over rolling hills to a local beauty
spot.
It was also in the early 90s that a new abbreviation began to appear on the industrial scene - ISO. An inter-
national standardisation body that could certify companies as living up to its predetermined (and high)
quality standards by a series of inspections and audits. So ein Ding mssen wir auch haben or translated:
Ill have one of those too! as the good folks at Pressalit said (they were apparently becoming too German
for their own good thanks to all the exporting being done there). So the process was launched with quality
procedures being defined and quality manuals written, the personnel was sent on quality courses (where

they were taught to sort plastic beads without dropping any on the floor!) and in 1993, the company was
awarded the coveted prize: the ISO 9001 quality certificate.
But apparently, it was not just Pressalit products that were known for their quality; in the mid-90s, Mogens
Boyter was contacted by the Social Minister. He had heard that Pressalit was a business that conducted
itself properly, which included towards its own employees. Naturally, this was something Mogens Boyter
could confirm not that he thought anything of it, to him it was a natural thing to do he had never heard
of the expression social responsibility. But then, nobody else had at that time either, although history
shows us that it was to become a force to be reckoned with. A network was formed to progress a new
partnership between businesses and the public authorities concerning social responsibility, in which Pressa-
lit came to play (and still plays) an active role.
Simple respect for the immediate surroundings (the factory is situated in the town of Ry itself surrounded
by residential neighbourhoods) and genuine appreciation of being able to work in such scenic surround-
ings as those found in Ry have meant that Pressalit has always been an environment-conscious business.
So when at a later date it also became possible to become environment certified to ISO standards, it was a
natural progression to do so. Thus the ISO 14001 standard was duly gained in the spring of 1997. By achiev-
ing certification, Pressalit committed itself to specific, scheduled targets for environmental improvements
and to publish a Green Audit annually.
Mogens Boyter passed away in 1998, suddenly and unexpectedly. The shock and grief felt within the com-
pany was echoed throughout a wide section of society, as he had become well-known and valued within a
wide circle of friends and acquaintances. The third generation now took the helm at Pressalit in the form of
Kim, Dan and Erik Boyter with Kim as Managing Director.
The gradual development of Pressalit Care, started in 1999, was completed in 2001, resulting in a new cor-
porate structure: Pressalit Group A/S became the holding company for three independent companies, Pres-
salit, Pressalit Care and SaniScan. Each had its own mission, vision and strategy, and was to target its own
customer segment with its own management, but would share and develop a living corporate culture based
on a common set of values formulated the same year (2001).
Pressalit had always been a value-based business, but those values had never really been defined other
than as general concepts such as we will always do our best, we will always conduct ourselves properly.
But nothing had ever been written down until now. The values to be used were formulated under the titles:
We listen. We give. We play. We act.
Pressalits long tradition of displaying social responsibility was highlighted in 2003 within two particular
fields: An integration project called "Ry a local authority that needs everyone", for which Pressalit was
one of the initiators, was awarded the Integration Prize. Furthermore, the Pressalit Group was also award-
ed the prestigious 'S' mark, based on measurement of social responsibility, scoring 83 points out of a possi-
ble 100 on the Social Ministrys Social Index. Three years later - in 2006 - we achieve a recertification of the
'S' mark.
In the late summer of 2004, Pressalit celebrates its 50th anniversary. A lot has happened since the cat
knocked over the glue pot in 1954. Pressalit is firmly established as a world leader in its field. The fact is
confirmed when we in 2006 and 2007 are named B2B Superbrand. An honour that goes to Pressalit Group
based on a survey among 2,100 'ordinary' Danes and 517 business managers. It is with pride that we can
take our place as a member of a select club of Superbrand companies who have succeeded in creating and
obtaining an unique and strong brand.

From 2008, Pressalit and Saniscan will enter into closer collaboration. This collaboration will more take the
form of a joint business area that handles distribution via the three channels: trade, OEM and DIY. Today,
Pressalit Group thus consists of the two divisions: Pressalit and Pressalit Care.
During the summer 2008, Erik Boyter resigns from the Pressalit Group Executive Committee. Kim Boyter
and Dan Boyter remain in the management with a new distribution of roles.
There are many reasons why the Pressalit is still going strong; one of them is that the company has always
had its share of go-getters, good teamwork and good ideas. But perhaps the most important of all is that
over the generations, it has always cared for those who care for Pressalit. And we still hold that this is
true.
Company values
THE SAME APPLIES TO COMPANIES
as to people
You cannot invent a company's values. Many have gone wrong here. They define their values based on who
they want to be. Not who they are. It doesn't work. There will be a discrepancy between what they say and
what they do. No one believes them.
We believe that a company's values always have to be dug out. They have to be found. We have formulated
our values after a great deal of input - formal and informal. And we have arranged them in four groups.
Each group corresponds to one of the areas that are important for human well-being: Care. Recognition.
Humour. Meaning. Areas that are also important for growing companies.
We listen
because at Pressalit we respect other people and their views. We enjoy recognition for our efforts - we
believe in finding strength through being different.
We give.
And receive in return. We share knowledge and experience. We believe in committed people. We believe in
the interaction between the employee and the organisation. In a partnership that is always prepared to
challenge the status quo.
We play
because without play, there can be no development. Initially, all big ideas seem absurd, as Einstein said.
That is why we give room to oddball thinking. We dare to take chances. We are bold. Also when it comes to
life. We appreciate humour. And we have a zest for life.
We act
in a focused way. We are born innovators. We enjoy trying new things. By creating value for our customers
- and our customers' customers. Through our actions, we are constantly renewing our credibility. We are

focused. We recognise that we are assessed by our results (and not by the processes). We are always pre-
pared to do better where there is room for improvement.
We believe that the company shall not be run from the top. It is best run from within. The head of each
individual department is in closest contact with the employees, and it is his or her task to build trust and job
satisfaction.
A continued focus on educating the employees is one of the most important parameters for continued busi-
ness success.
We believe, that care is all-important - care in product design and function, care in the quality of our work,
care in our cooperation with others, care in our handling of ressources, customers and the environment.
Vision and mission

Strategies are a way to direct a business toward a goal; it is a way that dictates the corporate ways of work-
ing.
Here you can read about Pressalit's overall goals and strategies which form the foundation for our work and
for the two business areas. The corporate strategy describes our main focus areas and guidelines for our
development.
Mission
To operate business areas that develop, produce, sell and advise on design-based quality concepts for bath-
rooms
Vision
A profitable, competitive company that adds value and is renowned for
- quality
- innovative solutions
- responsibility
benefiting customers, employees and the surrounding community
Focus Areas
Pressalit has eight focus areas which are as follows:
The Eight Focus Areas

1) To promote a corporate culture whose management focus is on active employee involvement, wellbeing and co-
1.
responsibility
2) To drive the company's development through an ongoing process that uses Business Excellence to establish a pro-
2.
fessional framework for achieving ever-better results
3) To stimulate holistic thinking and synergy by deploying scale economies, developing common tools and implement-
ing 3.
them throughout the organisation
4) To further develop our strong brand as a single motivational force for all business areas and products, enabling us
4.
to enhance our market position and attract the best employees

5) To ensure that the company acts ethically and responsibly in all respects and in the interests of the image that Pres-
salit5.A/S represents
6) To prioritise resources, materials and investments and use them to underpin activities that offer the best develop-
ment opportunities for Pressalit as a whole
7) To make the decisions necessary to meet the owners' requirements for earnings, return on capital and equity ratio
at all times
8) To promote innovative thinking by being open and receptive to ideas and external partnerships that can contribute
6.
to developing Pressalit A/S.
The Customer in Focus
is a key word for the activities of the company. As a leading manufacturerof toilet seats Pressalit is obligated
to aim at superiority in all aspects of its activities. The product range is adapted to the individual markets and
widened with new models focusing on visual design, optimal function and technical innovations. The production
facilities and logistics satisfy the demands that major Danish and foreign customers are entitled to place on
their suppliers. Delivery guarantee is close to 100%.
Business Areas
Pressalit A/S includes two business areas
Pressalit Seats, which also includes the product brand Saniscan,

Pressalit Care dealing with development, manufacture and marketing of products for primarily bathroom
designs. The business areas are pursuing individual objectives and are doing business with individual segments.
Production and production development

Pressalit manufactures toilet seats in app. 100 different models, mainly in duroplast - in app. 75 colour vari-
eties. The product range also includes a wide assortment of wooden seats. The duroplast seats are - from A
to Z -manufactured in the Pressalit factory (Isagervej 30, Ry). The raw material - urea-granulate - is pressed
in heated moulding forms under great pressure and high temperature. The pressed objects (separate seats
and covers) are ground and polished, then mounted with hinge links and buffers, and finally the completed
Pressalit seat is ready for packaging. As for the wooden models, seats and covers are manufactured at sub-
suppliers, the jobs for the Pressalit production crew being limited to mounting with hinge links and buffers
+ packaging. The Pressalit Care products are made of components delivered from sub-suppliers. Assembling
and packaging are carried out at Pressalit. Common for all products - duroplast seats, wooden seats and
Care products - is that the development of the products is in the hands of our own development depart-
ments - often in co-operation with external designers. When it comes to the Pressalit Care products, the
development of new products always include co-operation with user
and carer groups.
Corporate Social Resposibility (CSR)

We have always believed in treating one another respectfully. We
have also always believed that it is our duty to take an active inter-
est in the community and the environment our company is part of.
This commitment has its roots in the company culture and runs like
a red thread through Pressalit's entire history. In short, we firmly

believe that performance and responsibility should go hand in hand
Today, our work with Corporate Social Responsibility (CSR) is deeply anchored in the company strategy and
our endeavours are ingrained in the system via a series of activities and partnerships. Pressalits CSR efforts
are also well known and recognised by the public sector, for example, through the company being awarded
the CSR People Prize in autumn 2011.
Our current work with CSR is based on three basic principles: joint responsibility, our employees and the
environment. Click on the menu above to learn more about our endeavours in each of the three areas.
You can read more about our business foundation on the pages describing our vision and mission. In addi-
tion, our values are pivotal to the way in which we approach CSR initiatives.
Global Compact and Code of Conduct

Since 2002, Pressalit has participated in the United nations initiative Global Compact. The principles of
Global Compact have, for example, been incorporated into our Code of Conduct, which is a set of internal,
ethical rules which all employees must be familiar with and adhere to in their work.
The Global Compact principles have also been integrated into our dealings with our suppliers.
The Ten Principles 2

The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-
corruption enjoy universal consensus and are derived from:
The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a
set of core values in the areas of human rights, labour standards, the environment and anti-corruption:
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: make sure that they are not complicit in human rights abuses.
Labour
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; and
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
2
http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html

Supplier Re-
quirements
Pressalit A/S adheres to

an ethical set of rules
also known as our Code
of Conduct - which in-
cludes policies for: Di-
versity, Human Rights,
Compliance with Law,
Anti-Corruption and
Environmental Care
Pressalit seeks to main-

tain certain guidelines
with regard to supplier
requirements. These
relate not only to quali-
ty, but also to our code
of conduct, which de-
fines our requirements
regarding human rights,
restricting child labour
and ensuring acceptable
working conditions for
employees. This is in-
creasingly important, as
we buy globally from
markets where
Danish standards
are not a given.
Pressalit A/S also

subscribes to the
UNs Global Com-
pact, as we wish to
support a global
focus on corporate
responsibility.
Despite the fact

that Pressalit is
both environmen-
tally and quality

certified in accordance with ISO 9001 & 14001, we do not require that all our suppliers meet these stand-
ards. We do, however, emphasise that all our suppliers follow ISO principles. By this we mean that it is im-
portant the supplier work with process control, establishing potential complaint procedures and corrective
and preventive actions etc.
while environmental and quality certification is not a requirement, we prefer our suppliers to comply with
these standards. It is, however, a minimum requirement that the supplier complies with environmental
legislation and working regulations in his native country.
Financials
Management and selected figures from the annual report 2011
Management Review
Main Activity
The Group's principal activity is production and sale of toilet seats and bathroom accessories and kitchen
and bathroom equipment for people with disabilities.
The Group's production takes place in Denmark and Thailand, and sales handled by the parent company,
subsidiaries at home and abroad, and selected agents abroad.
Development in the Year
Revenue for 2011 at 432 million against 460 million in 2010. The ordinary result was 24.1 million. Net profit
amounted to 14.8 million, which is consistent with the previously expressed expectations.
In 2011, the Group has sold off non-core business, which has contributed to the decline in revenue. In 2012
Pressalit focus on ensuring competitiveness in relation to primarily new Asian competitors through efficien-
cy and reducing cost levels.
The Group's asset base is at the end of the year 310 million and equity 172 million.The Group's equity ratio
is 56%.
Investments
Total investments in fixed assets amounted to 16.3 million.
Product - and production development.

There is an ongoing product development in toilet seats and bathroom equipment for people with disabili-
ties.
In addition, the company is working continuously to improve and streamline the production process and
ensure the optimum quality. In this respect the regard for the environment is an important factor. Among
other things focus on better resource management, and minimization of emissions. The company is quality
and environmentally certified.
Employee relations.
Company at year end, had 376 employees, of whom 314 work in Denmark. Highly qualified staff is man-
agement's opinion, an important factor for the company to live up to its reputation as a quality suppli-
er. Therefore constant training of employees in all departments and at all organizational levels is crucial.
The anticipated economic development.

The Company's management expects that the market in 2012 slowly recovers. The company will see con-
tinued focus on competitiveness, including the effectiveness and costs.
The result in 2012 is expected on this basis to be on par with current year's results.
Selected key figures from Pressalit and Geberit
As benchmark Pressalit has chosen the Swiss company Geberit even though they are much bigger, but they
are pretty much in the same business areas.
Pressalit :
Pressalit
in dkk. Mio. 2011 2010 2009 2008 2007
Revenue 432 460 460 537 554
Cost of goods sold 273 300 322 372 368
Gross profit 159 160 138 165 186
Fixed cost 135 136 137 142 143
EBIT 24,0 27,5 1,6 21,8 42,5
result for the period 14,8 11,9 0,1 7,4 27,0
Selected balance sheet figures:
total assets 310 308 319 360 389
Inventories 77 57 75 93 92
Trade receivables 39 51 41 52 57
Trade payables 17 19 15 18 24
Equity 172 172 180 185 214
Number of employees 376 386 382 450 486
Key ratios, Pressalit 2011 2010 2009 2008 2007

Profit margin 5,6% 6,0% 0,3% 4,1% 7,7%
Asset Turnover 1,4 1,5 1,4 1,5 1,4
ROA (Return on assets) 7,7% 8,9% 0,5% 6,1% 10,9%
ROE ( return on Equity) 8,6% 6,9% 0,1% 4,0% 12,6%
Revenue pr. employee 1,1 1,2 1,2 1,2 1,1
Working capital in % of Revenue 23% 19% 22% 24% 23%
solvency 55% 56% 56% 51% 55%
Geberit :
key ratios , Geberit 2011 2010 2009 2008 2007

Profit margin 21,1% 22,6% 24,2% 22,9% 22,3%
Asset Turnover 1,0 1,0 1,0 1,2 1,1
ROA (Return on assets) 21,1% 22,4% 23,9% 27,4% 24,1%
ROE ( return on Equity) 27% 27% 26% 36% 33%
Revenue pr. employee 1,5 1,4 1,4 1,9 1,8
Working capital in % of Revenue 10% 9% NA NA NA
solvency 67% 70% 68% 64% 61%
NA = Non Avaible
ROA ( Return on Assets) = EBIT *100/ Total assets

ABC Customer Profitability Analysis
The table below shows a breakdown of Pressalits total income and costs into 5 customer seg-
ments
in dkk. 1000 Customer segments

A B C D E Total
Sales 217.000 25.000 15.000 125.000 50.000 432.000
Cost of goods sold 163.000 10.000 8.000 67.000 25.000 273.000
Gross margin 54.000 15.000 7.000 58.000 25.000 159.000
Gross margin percentage 24,9% 60,0% 46,7% 46,4% 50,0% 36,8%
Marketing and support 8.000 3.000 1.000 16.000 6.000 35.000
Service an meetings 5.000 3.000 2.000 3.000 6.000 20.000
Handle orders 5.000 4.000 2.000 3.000 6.000 20.000
Ship to customers 15.000 9.000 6.000 17.000 10.000 60.000
Total MSDA 33.000 19.000 11.000 39.000 28.000 135.000
Profit margin in dkk.
Profit margin percentage
MSDA : Marketing, Selling, Distribution and Administrative expenses
Appendix 1: Pressalit to create growth in new markets

The Ry company is put under pressure by Chinese producers of discount toilet seats and by the debt cri-
sis in Europe Industry.
By Oskar Lund
Family-owned Pressalit is under severe pressure from Chinese competitors and unstable West-European
markets suffering under the debt crisis. Therefore the Management has, in a new strategy, chosen to
invest in both new products with high design content and in new export markets with far better growth
possibilities. We cannot live up to our own goal of a growth of 10 p.c. per year. Consequently we have to
look inwards and develop new strategies for growth. The ambitions of growing have certainly not been
shelved, says Dan Boyter, chief executive.
With its headquarters in Ry and the Jutlandish lake district Pressalit is one of the largest producers in
Europe within exclusive toilet seats in the division Pressalit Seats and bathroom solutions for persons with
disabillities in the division Pressalit Care. The toilet seat production today accounts for two thirds of the
turnover, while Pressalit Care makes up the last third.
The biggest possibilities for growth lie in Pressalit Care concurrently with the fact that all over the world
more and more elderly require disability aids. At the same time new thinking takes place within the entire
health care sector among other things in the form of the building of new, efficient hospitals. This is why
we are investing substantially in the Care division, which is expected to make up half of the turnover in
five years, says Dan Boyter.
Targeting new countries
Besides investing in new products with a focus on design and a high knowledge content the Care division
is now also seriously targeting new markets such as Russia, China, Canada, and the U.S. where Pressalit
already has a close co-operation with local distributors within the disability area. A distributor network
which has to be further developed.

Pressalit is especially aiming at supplying solutions for the entire institutional and hospital sector. We are
challenged by the fact that a huge part of our turnover is based on Europe. This affects our growth, and
we are therefore forced to enter new markets in both divisions, says Dan Boyter.
How pressurized the Ry-company is, is reflected in the 2011-accounts where the nervousness in the
global markets made the turnover slump in the fourth quarter after a reasonable development during the
first nine months.
Sell-off is costing
The turnover has decreased by 6 p.c. to DKK 432 million from DKK 460 million the year before. However,
the decrease is first and foremost due to the sell-off in 2010 of Care-activities in Britain where the com-
petition became too keen. Cleaned of these figures, there was in actual fact a growth of 2 p.c. in 2011
compared to the year before.
The operating profit (ebit) was DKK 24 million against DKK 28 million in 2010. The cash flow is positive.
Dan Boyter expects a growth of 2.3 in 2012 and earnings on level with the year before.
While the biggest competitors within the Care division are minor national producers, Pressalit today
meets its keenest competition in the Pressalit Seat division from producers of discount toilet seats in Chi-
na.
Regarding quality the Chinese cannot keep pace with us, but we have to acknowledge that many con-
sumers buy discount goods also when it comes to toilet seats. We respond with huge investments in
among other things product development and design, says Dan Boyter.
In 2011 Pressalit invested more than DKK 16 million in product development, IT and production technol-
ogy with automation and robot production. Pressalit has sourced large parts of its components to sub-
suppliers abroad, but continues to keep production and assembling at the factory in Ry.
But this does not mean that we shall do so in all eternity. It compIetely depends on the cost level in
Denmark, says Dan Boyter.
In order to get a pierhead to the Asian and Australian market Pressalit has also invested in a toilet seat
factory in Thailand, which now has 30 employees.
Appendix 2: We are old school

Family owned
By Oskar Lund
In a capital fund it would probably have caused frowning and demands for a different financial structure. But in the
family and owner-managed Pressalit in Ry they are quite satisfied that the booked equity was at DKK 172 million and
the equity ratio of a much as 56 p.c. by the end of 2011.
As a family-owned company we think a bit old-fashioned. The philosophy being that it is good to fortify yourself. It is
always nice to have a solid point of departure for the creation of growth. This is the attitude held by me and my broth-
er as company owners and the attitude is backed by our professional management, says Dan Boyter, chief executive
in Pressalit.
The company was established in 1954 and it grew under the management of the charismatic managing director and
owner Mogens Boyter, who suddenly and quite unexpectedly died in August 1998.
In 2010 the generational change was completely carried through when the two brothers, the 48 year-old Kim Boyter
and the 46 year-old Dan Boyter, took over their mother, Fay Boyters, shares at a price that is the familys secret. Two
other brothers are neither shareholders nor active in Pressalit.
Kim and Dan Boyter own the A-shares and B-shares with a half each. In case of a good offer from a buyer, they both
have to agree to sell.

But it is definitely not of current interestl. We should like to further develop Pressalit, and we believe that there is a
future for the company, says Dan Boyter.
Chairman of the Board in Pressalit is Lars Aagaard, group managing director in Grundfoss, and on the Board is among
others David Meyer, manager in Velux.
When the owners are so close, both feelings and an enormous commitment to the company are involved. But on the
Board we will still challenge the management. They will probably feel that we are setting some tasks that they would
otherwise not have chosen. But that is probably why you have a professional Board, says Lars Aagaard.
Appendix 3: FACTS Five pieces of good advice from Pressalit

Dan Boyter , chief executive, Pressalit:
1) Create clarity about the companys strategy and goal
2) The employees competences must be developed. They are the ones the company is to survive on
3) Even in times of crisis when the company is pressured and the competition keen, it is important to invest in
product development and innovation
4) The company must have a global outlook, understand its markets and see the possibilities regarding export and
sourcing
5) Integrity is important. The company must behave properly wherever it is acting
Appendix 4: Pressalit terms of sale and delivery (excerpts)/ Pressalit salgs- og leveringsbe-
tingelser (uddrag)
English Danish
4. Delivery 4. Levering
4.1 Delivery takes place CPT (Carriage Paid To, see appli- 4.1 Levering sker CPT (Carriage Paid To, jf. gldende
cable Incoterms) the Customers address and delivery is Incoterms) kundens adresse, og levering anses for sket
deemed to have taken place at the time of hand-over of ved overgivelse til den frste tranportr.
the products to the first carrier. The Customer is liable Kunden er ansvarlig for forsinkelse og forsikring under
for any transport.
delay and insurance during the transport
5. Payment 5. Betaling
5.1 The terms of payment are invoice month plus 15 5.1 Betalingsbetingelser er lbende mned + 15 dage fra
days as from the date of the invoice. In the event of late fakturadato. Ved forsinket betaling er kunden pligtig at
payment, the Customer is obliged to pay 1.2% interest betale 1,2 % rente af fakturabelbet fra forfaldsdato pr.
on the amount invoiced as from the due date per month pbegyndt mned.
or fraction thereof. 5.2 Indtil betaling er sket, har Pressalit ejendomsforbe-
5.2 Pressalit retains title to the products sold until pay- hold i det solgte.
ment is made. 5.3 Kber er uberettiget til at foretage modregning i
5.3 The Customer is not entitled to set off any amount Pressalits krav p betaling for kbte varer, medmindre
against Pressalits claim for payment for products pur- sdant modkrav skriftligt er anerkendt af Pressalit.
chased unless such counterclaim has been recognized in 5.4 Pressalit forbeholder sig ret til at krve, at kunden
writing by Pressalit. p forlangende stiller en bankgaranti eller anden tilfreds-
5.4 Pressalit reserves the right to demand that the Cus- stillende sikkerhed overfor Pressalit som betingelse for at
tomer, upon request, provides a bank guarantee or other acceptere en kbsordre. Pressalit forbeholder sig ligele-
satisfactory security towards Pressalit as a condition for des ret til at krve kontant betaling ved levering som
acceptance of a purchase order. In addition, Pressalit betingelse for at ville acceptere en kbsordre.
reserves the right to demand payment in cash upon de-
livery as a condition for acceptance of a purchase order.
7. Customers duty to examine products and to give 7. Kundens undersgelses- og reklamationspligt

notice of defects 7.1 D et phviler kunden at undersge den leverede vare
7.1 The Customer is obliged to examine the products for mangler umiddelbart ved levering, og senest - hvis
supplied for defects immediately upon delivery and, if the kunden ikke selv afhenter varen hos Pressalit - nr varen
Customer does not collect the product from Pressalit, no er fremkommet til kunden.
later than when the product has been received by the 7.2 Hvis varen ikke svarer til det aftalte, herunder i rela-
Customer. tion til mngde eller kvalitet, er kunden forpligtet til at
7.2 I f the product does not correspond to the agreed reklamere senest 3 dage efter manglen er eller burde
specifications, including in relation to volume or quality, have vret opdaget og i alle tilflde senest 7 dage fra

the Customer is obliged to file a complaint no later than levering eller regnet fra det tidspunkt, varen er frem-
three days after the defect has been or should have been kommet til kunden, hvis kunden ikke selv har afhentet
detected and in any event no later than seven days as varen hos Pressalit. Overskrides denne frist, bortfalder
from delivery or calculated from the time when the prod- kundens ret til at gre manglen gldende.
uct was received by the Customer if the Customer has 7.3 Reklamation skal ske skriftligt med en beskrivelse af
not collected the product from Pressalit itself. If the said manglen. Kunden er efter anmodning fra Pressalit forplig-
time limit is exceeded, the Customers right to invoke tet til at fremsende det defekte produkt til Pressalit.
such defect will lapse. 7.4 I alle tilflde skal en reklamation over en mangel
7.3 Any complaint must be made in writing describing vre kommet frem til Pressalit senest 1 r fra det tids-
the defect in question. At the request of Pressalit, the punkt, hvor levering fandt sted eller hvor levering skulle
Customer is obliged to forward the defective product to have fundet sted. Er en reklamation ikke fremkommet
Pressalit. inden for dette tidsrum, kan den ikke gres gldende.
7.4 In any event, a complaint against a defect must be
received by Pressalit no later than one year as from the
time when delivery took place or when delivery should
have taken place. If a complaint has not been received
within this time limit, it cannot be invoked.

Pressalit A/S: Written Exam After 1 Semester Emester

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Pressalit A/S: Written Exam After 1 Semester Emester

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Bachelor of International Sales and Marketing Management

Professionsbachelor International Handel og Markedsfring

Written exam after 1st semester

Skriftlig eksamen efter 1. semester

The basis for the companys sale / Virksomhedens salgsgrundlag/

13 June 2012 / 13. juni 2012

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 1

Assignments: (In Danish below)

Assignment 2.1 (10%), Financial benchmarking.

Assignment 2.2 (15%), Customer Rentability.

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 2

Sprgsml 1.1. (20%) Hvordan afviger punkt 4 og 7 i Pressalit salgs- og leveringsbetingelser

Sprgsml 2.1. (10%), Financial benchmarking.

b. Foretag en Financial Benchmarking mellem Pressalit og Geberit som indeholder omrder-

Sprgsml 2.2. (15%), Customer Rentability.

Med udgangspunkt i en analyse af Presallits forretningsmodel og virksomhedsstrategi bedes du

Sprgsml 4.1 (10%) Giv din vurdering af virksomhedens CSR politik.

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 3

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 4

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 5

a product could be described as coincidence or good fortune.

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 6

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 7

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 8

Vision and mission

The Eight Focus Areas

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 9

The Customer in Focus

Pressalit Seats, which also includes the product brand Saniscan,

Production and production development

Corporate Social Resposibility (CSR)

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 10

believe that performance and responsibility should go hand in hand

Global Compact and Code of Conduct

The Ten Principles 2

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 11

Pressalit A/S adheres to

Pressalit seeks to main-

Pressalit A/S also

Despite the fact

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 12

Development in the Year

Total investments in fixed assets amounted to 16.3 million.

Product - and production development.

The anticipated economic development.

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 13

Selected key figures from Pressalit and Geberit

Key ratios, Pressalit 2011 2010 2009 2008 2007

key ratios , Geberit 2011 2010 2009 2008 2007

ROA ( Return on Assets) = EBIT *100/ Total assets

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 14

ABC Customer Profitability Analysis

in dkk. 1000 Customer segments

MSDA : Marketing, Selling, Distribution and Administrative expenses

Appendix 1: Pressalit to create growth in new markets

Targeting new countries

Written exam after 1st semester/Skriftlig eksamen efter 1. semester Page/Side 15