Comporate strategy

1. Comporate strategy for the period 2008 – 2012

At the end of 2008 basic principles of the corporate strategy for incoming period were discussed and prepared by company management. This strategy has been based upon the evaluation of previous period, upon the actual state and structure of company activities (first of all after significant reduction of yarn manufacturing capacity in 2008) as well as on the results of SWOT analysis which was made by Company management in the period June – October 2008 and which reflects actual economical-political conditions.

Undoubtedly, the fact that most of the low efficient and/or inefficient activities were left during foregoing period of time and thus most of the nonproductive costs could be significantly reduced was advantageous for determination of future position of the company. Within last couple of years also all personal and room capacities were concentrated and reasonably rationalised while all available facilities and assets remain our property and most of those which are not used by VUB are profitably rented.

2. Common grounds of future orientation

As far as future existence and orientation of the Company is concerned from the point of view of the actual development as well as with respect to all available knowledge and technology capacities logically the basic strength and opportunity lies in further development of specialized machinery activities as a dominating activity together with maximum possible continuation of present research and development activities (projects) with maximum accentuation of the exploitation of the results of such projects in manufacturing and business activities of the Company.

With respect to the fact that until now the activities were diversified in slightly other way (due to various reasons, both historical and personal or technological) it is necessary to modify Company infrastructure and create all required conditions for such future orientation. It is not only question of building new and/or reconstruction of existing manufacturing facilities but first of all the problem of finding and realization of such manufacturing program which would compensate the loss of considerable part of Company turn-over caused by reduction of yarn manufacture and which would also bring reasonable rate of return of the costs spent for such modification of the infrastructure.

3. Formulation of Company vision

Reasonable orientation of all manufacturing and business activities aimed at long-term prosperity of the Company which would satisfy the needs of share-holders of the Company as well as of its employees and which would ensure further development of the Company in the long-term perspective.

Efficient adaptation and finding of required diversified structure of Company activities which would reflect unfavourable development in the existing main fields of Company activities (textiles, textile machinery) with respect to maximum exploitation of available personal, technical and technological, knowledge and property capacities.

Ensuring of permanently stable existence, prosperity and further development of VÚB Co.Ltd. as a reputable and well recognized employer.

4. Key values, company mission