We Create Values | Sustainability Report

makes a difference

Front cover and photographs on this page:

After cleaning the Presidents’ heads on Mount Rushmore in 2005, in May and June 2008 Kärcher tackled another US landmark – the Space Needle in Seattle, WA. Pressure washers were used to clean the 184 metre building from mostly very stubborn grime. The work took eight weeks. So as not to interrupt day-to-day operations at the Space Needle, which receives 1.3 million visitors a year, the operatives worked at night.

Contents

Sustainability at Kärcher | Contents 3

Foreword by Kärcher CEO Hartmut Jenner | 5

Kärcher Code of Conduct | 7Principles of social responsibility

Constancy in Change – Company History | 8

Kärcher the Family-owned Company | 11A workforce of 8,000 in 49 countries – More than 50,000 service centres worldwide

Sales Companies and Production Locations | 12

Figures Reflect Growth and Innovation | 15

Together We are Strong | 17In conversation with Hartmut Jenner, Chairman of the Board of Management

Shaping the future – Sustainable management at Kärcher | 21Good company results safeguard profitable growth

The Kärcher Production System – Learning from the Best | 23Production and logistics processes are continuously improved by way of a competition

In Dialogue with Academics and Researchers | 25The Alfred Kärcher Foundation promotes the mechanisation and automation of cleaning tasks

Skills Training Excellence – a Future with Kärcher | 27In the face of global competition, employees bank on lifelong learning

Helping Hands – Proud of Working for Kärcher | 29Many years of successful cooperation with the Samariter-Stift/Fränkische Werkstätten charity

Preserving Treasures of the Past | 31“First-rate work for cleanliness and value preservation:” Cultural sponsorship at Kärcher

Icy Restoration of Liar‘s Bridge in Sibiu | 33Kärcher involvement in European Cultural Capital of 2007

Sponsoring Young Musicians Worldwide | 35Close partnership between Kärcher and the International Bach Academy Stuttgart

Taking Responsibility for Our Environment | 37We take environmental aspects into account in all corporate processes worldwide

Environmental indicators | 39

Environmentally Friendly Travel to Work | 43The Kärcher mobility concept encourages the use of public transport

One touch of a button produces great results | 45Environment and Climate Protection Working Group looks for savings potential at every location

Imprint | 48

The company

Social responsibility

The environment and us

Sustainability

The company’s founder Alfred Kärcher with his wife Irene in the 1950s.

Dear Reader,

Sustainability has become something of a management policy buzzword in recent years. At Kärcher, the concept of sustainability has been an integral part of the cor-porate culture right from day one. Company founder Alfred Kärcher and his wife Irene both practised the belief that sustained economic success was only achievable on the back of due consideration for social concerns. Today, the twin pillars of eco-nomic success and social justice have been joined by a third essential condition for future-proof corporate development: Protection of the environment, an issue which has been integral to Kärcher’s corporate policy since as long ago as the seventies.

We firmly believe that responsible business management must focus on sustain-able, people-oriented corporate development. Our primary aim is to engender values to which our customers, our em ployees and the company itself can adhere. This is the motivation for our above-average investment in research and development, in modern production technol ogies and in high-quality training and instruction for our employees. In this way we create the conditions which allow us to honour a social commitment which stretches beyond our day-to-day work – whether in support of cultural development, social institutions or environmental protection.

The healthy growth enjoyed by Kärcher over recent decades and the successful implementation of a whole range of charitable projects during the same period testify to the wisdom of this approach. The dedication and innovative drive of its workforce have been instrumental in making our internationally-oriented company the world market and technology leader in the cleaning technology sector. In its progress towards this goal, the company can pride itself on the extent to which it has dis -charg ed its social responsibility. But the process of reconciling economic with social needs is something which needs to be constantly revisited and revised. This is a challenge we face every single day.

The aim of this Sustainability Report is to outline the many initiatives launched by Kärcher with this aim in mind, and also to invite you, the reader, to enter into an open and constructive dialogue with us. We look forward to your suggestions and your impetus!

Hartmut JennerChief Executive Officer Chairman of the Management Board

Foreword

Sustainability at Kärcher | Foreword 5

Preamble

Kärcher is a family-owned company with abiding management as an essential el-ement at the heart of its corporate culture. Kärcher stands by its social responsibility and declares the following principles:

Human rights and compliance with the lawWe respect human rights; we also respect the relevant laws, values, standards and social order in all countries.

Discrimination We do not tolerate any discrimination based on sex, age, race, nationality, disability, social origin or sexual leanings. We advocate equal opportunity.

Child labourWe condemn child labour and comply with the statutory regulations pertaining to the minimum age of employees.

Forced labour and punishmentWe condemn forced labour and physical punishment, threat and harassment of employees.

CorruptionWe resolutely reject any form of corruption.

Freedom of associationWe recognise the right of our employees.to the freedom of association. We work together with worker representatives on a basis of trust.

Fair pay and working timePay, benefits and working hours comply with legal requirements locally as a mini-mum.

Occupational health and safetyWe protect our employees from dangers in the workplace and support measures to promote the health of our employees.

Environmental protectionOur products, services and processes are designed to be environmentally-friendly. Wherever our company operates, we take account of the environmental require-ments and deal with natural resources with all due responsibility.

Principles of social responsibility

Kärcher Code of Conduct

The Company | Code of Conduct 7

1901 | Alfred Kärcher is born on 27 March in Cannstatt.

1924 | After graduating in engineering from Stuttgart Techni-cal University at the age of 23, he joins his father’s agency. He develops it into a engineering office. Among other things, they design canteen cooking, industrial laundry and water recovery systems.

1935 | Alfred Kärcher opens his own company in Stuttgart-Bad Cannstatt and begins producing electric heaters, large immersion heaters and special heating devices for industry.

1939 | Move to Winnenden. In 1937, Kärcher had bought an industrial site from drugs manufacturer Thomae, where the company headquarters still stands. Production of pre-heating burners for aircraft engines, cabin heating systems and nebu-liser nozzles for high-performance engines. In 1942 Kärcher begins developing the impact burner.

1945 | A new start after World War II: 40 employees make a wide range of products, most of them urgently required for everyday use. They include circular kilns (from cartridges), cook-ing stoves, small ovens and handcarts.

1950 | Development and registration of a patent for the first European hot-water high-pressure cleaner (the KW 350 boil-ing-water cleaner). The company presses ahead with pro -ducing the cleaner in different performance classes, and with further development of a high-speed steam generator. The company’s product range also includes portable heaters and spray heads for cleaning the insides of tankers and large con-tainers. Alfred Kärcher now has a workforce of 120 employees.

1959 | Alfred Kärcher dies of a heart attack on 17 Septem-ber. His wife Irene Kärcher continues his life’s work. By the end of the year the company has 300 employees and earns sales revenues of DM 7 million.

1962 | The first foreign company is established in France, where it is based at Maisons-Alfort near Paris.

1974 | The company concentrates on high-pressure cleaning. The corporate colour is changed from hammered-finish blue to the now world-famous Kärcher yellow.

When tests

and trials were

carried out,

Alfred Kärcher

was in his el­

ement. He was

always coming

up with new

ideas.

An employee looking back.

The KW 350 boiling water cleaner, the first hot-water high-pressure cleaner.

The factory site in Winnenden in about 1950.

Alfred Kärcher, 1901 - 1959

The appliances change colour, from ham -mered blue to the world-famous yellow.

8 History | The Company

Constancy in Change – Company History

1980 | Strategy adjustment: Kärcher now aims to cover the basic need cleaning worldwide, initially in the transport and building fields of application.

1984 | Kärcher enters the consumer market with the first portable high-pressure cleaner, the HD 555 profi. This idea creates a new market in which Kärcher is still the world leader.

1989 | Death of Irene Kärcher. Johannes Kärcher and Su-sanne Zimmermann von Siefart assume responsibility as the second generation of the family.

The first car wash is developed.

1993 | The consumer business is expanded to include in-door machines. Launch of industrial sweepers and scrubber-driers.

1998 | Using a newly developed blasting process, Kärcher cleans the Colonnades on St. Peter’s Square in Rome. It takes nine months to remove the dirt from an area measuring more than 25,000 square metres.

2001 | Sales revenues grow to more than EUR one billion.

2003 | Kärcher launches the RoboCleaner RC 3000, the first fully automatic cleaning robot for consumers, on the market.

2004 | Kärcher acquires the American company C-Tech and expands its worldwide leadership in high-pressure cleaners.

2006 | Takeover of Castle Rock Industries Inc., the US mar-ket leader in industrial carpet cleaning.

2007 | Kärcher enters into a new line of business – Garden. It opens up new markets worldwide with pumps for, irrigation, drainage and domestic water supply.

2010 | Kärcher celebrates its 75th anniversary.

Irrespective of

technologies,

a company

must foster

its very own

culture, one

geared primar­

ily to human

goals.

Irene Kärcher

The Company | History 9

1901 – 2010

The first portable high-pressure cleaner, the HD 555 profi.

Irene Kärcher, 1920 - 1989

Using a new kind of blasting method, Kär-cher cleans the Colonnades in Rome.

Extracting water from a well with an SPP series pump.

The Company | Kärcher Today 11

A workforce of 8,000 in 49 countries – More than 50,000 service centres worldwide

Kärcher the Family-owned Company

Kärcher, based in Winnenden near Stuttgart, Ger-many, is the world’s largest manufacturer of cleaning equipment. In the financial year 2010, this family-owned company posted sales rev enues of EUR 1.526 billion, and sold 7.28 million ma chines, more than ever before in its history. Kärcher now has 8,000 employees in 49 countries. The cleaning equipment specialist has production facil ities in Germany, Italy, Romania, the United States, Brazil, Mexico and China. More than 50,000 service centres worldwide ensure that there are no gaps in customer care.

Innovation is key growth factor

Innovation is the key growth factor. Around 85% of the products that Kärcher sells are four years old or less. In the company’s development centres, circa 600 engineers and technicians are involved in design-ing new problem solutions.

A further guarantee of success is the high quality standard of products. This is ensured by the Kärcher Production System and shown by the com pany’s DIN EN ISO 9001 certification. Kärcher also plays a pioneering role in environmental protection. It was the

first company in its sector to be awarded, for the com-pany headquarters, a DIN EN ISO 14 001 environ-mental certificate covering all corporate divisions, from market research to development, production and cleaning system sales. In 2005 Kärcher was awarded the federal state of Baden-Württemberg’s Environment Prize in the manufacturing company cat egory.

Integrated solutions for many cleaning tasks

With its high-pressure cleaners, vacuums and steam cleaners, sweepers and scrubber-driers, car washes, detergents, dry ice blasting systems and drinking water and waste-water treatment systems, Kärcher offers integrated solutions for many cleaning tasks. Many new products were launched last year, in-cluding the new Home Line cleaning machines for private households, the B 40 RS slimline step-on scrubber-drier and the TB gantry wash for commer-cial vehicles.

Kärcher machines are sold mainly to the car busi-ness, industrial cleaning companies, the hotel and restaurant trade, agricultural enterprises, local governments, tradespersons, and private house holds.

Kärcher, the lead ing cleaning equipment

specialist, is on an uninterrupted

growth trajectory. The old-established

fam ily-owned company’s 8,000 employees world-

wide make this suc-cess possible.

12 Kärcher Worldwide | The Company

Sales Companies and Production Locations

The Company | Kärcher Worldwide 13

Germany

• Winnenden• Bühlertal• Obersontheim • Gissigheim• Illingen• Waldstetten• Duisburg

Italy

• Volpiano• Quistello• Reggio Emilia • Montereale Valcellina

Our factories and logistics centres

Romania

• Curtea de Arges

Mexico

• Monterrey

Brazil

• Paulínia, S.P.

China

• Ningbo

North America

• Camas / Washington• Springdale / Arkansas • Denver / Colorado • Chandler / Arizona

Figures Reflect Growth and Innovation

The Company | Reflected in Figures 15

Units sold in thousands

Employees

Kärcher sales companies

Age of equipment range

Sales revenues in EUR millions

Patents / Utility patents

1980

107219

461

633

1985 1990 1995 2000 2005

956

1106

2010

1526

1980 1985 1990 1995 2000 2005

1342

120

239 242

329

2010

381

1980 1985 1990 1995 2000 2005

73 197

808

2254

4378

5535

2010

7280

1980 1985 1990 1995 2000 2005

1456

2393

3739

4604

53465872

2010

7452

1980 1985 1990 1995 2000 2005

7

16

20

28

33

41

2010

49

> 5 years0-5 years

Alter des Geräteprogramms

in % of sold units 2010

%

%15 %

85 %

Teamwork yields results: Kärcher employees iden-tify strongly with their company and share the goal of moving Kärcher even further ahead.

“We at Kärcher

deliber ately agreed

to put into practice

an international, open

and shared corporate

culture.”

“An intrinsic strength

of ours is that we

solve our problems

ourselves.”

Mr. Jenner, when talking about a company’s image, people from the business world often refer to their corporate culture. What do they mean by that?

Every company has its own culture, regardless of whether it is actively managed and communicated or not. Generally, this culture is made up of certain conceptual values, forms of behaviour, attitudes and norms that are operative in the company.

What role does this topic play at Kärcher?

We at Kärcher deliberately agreed to put into practice

an international, open and shared corporate culture. We are further underpinning this goal with our Gui-ding Principles and our Principles of Leadership and Conduct. The original initiative for this came from the Kärcher family, the Administrative Board and the man agement. However, the critical thing is not just to state our values in brochures, but for managers and employees to actually put them into practice in a cred ible manner.

And what is characteristic of Kärcher culture as prac-tised?

A fundamental characteristic of Kärcher is that we are a family-owned company. In other words, there is a Kärcher family that stands wholly by the com-pany and fulfils its responsibility toward em ployees and the company. This attitude is also vis ible in our em ployees. They identify with the company and with their work, and many of them have worked for Kärcher for several decades. My personal experi-ence is of very hardworking employees who want to achieve something together and who devote them-selves to their jobs with commitment and a sense of responsibility. There is also a discern ible pride in our brand and our achievements, though this never comes across as arrogant, but is always linked with the aspiration to move Kärcher even further for-ward.

An intrinsic strength of ours is that we solve our problems ourselves as soon as they crop up. We need no industry association, no trade union or judge, but are able to find solutions jointly on the spot. Even if conflicts and arguments take place, we still treat each other fairly and feel mutual respect. Sugges-tions, proposals for improvements, and criticism are always welcome, and not only from the top down.

Together We are Strong

In conversation with Hartmut Jenner, Chairman of the Board of Management

The Company | Sustainability 17

In the technical purchasing workshops, every product is put to the test: Here, (left to right) Dietmar Zachari, Head of Central Acquisition and Buying Equipment, Technical Buyer Alexander Tang, and Thomas Popp, General Manager Supply and Techno-logy (right), are examining an A 2004 wet and dry vacuum.

Kärcher now has sales operations in more than 190

countries. It has 70 companies in 49 countries and

8,000 employees. Do we have a common corporate

culture at the international level?

Certainly, we have one Kärcher culture worldwide, albeit with different local peculiarities. This is by no means contradictory, in fact it is expressly desired. Wherever we operate we have committed employees who are very familiar with the manners and language of the particular country so are able to respond to the different requirements of our customers. When mak-ing acquisitions, it was always a central concern of ours to ensure that the corporate cultures of the companies we acquired were compatible with ours. We always examined this in great detail. Since both C-Tech and Kärcher Floor Care were previously fa-mily-owned companies, there were many parallels with Kärcher, and many connecting factors.

Which aspects of our corporate culture do you see as

being especially important in the years ahead?

There are five principle themes that are already firmly anchored in Kärcher’s corporate culture but which I would like to strengthen further: excellence, dedi-cation, ambition, discipline and responsibility. The aspir ation to produce excellence and to continuously improve ourselves is a very important value for us. That is why Kärcher is world market leader. What dis-tinguishes us is our constant striving to be better. We have only succeeded in this in the past because our employees tackled their jobs, which were certainly not always easy, with dedication, healthy ambition and passion.

In this respect, our corporate culture naturally has an external impact, too. Our customers and business

partners see that we are in this heart and soul and not just doing our duty. Discipline is another success factor. By that I do not just mean keeping to dead-lines and getting to work on time. What I care about most is disciplined thinking. There will always be is-sues that require courage, where a decision must be made in the face of opposition. I think it is very important in situations like that to pursue a strat-egy consistently and not to give up. Our goal is to preserve and continuously expand the company for many generations to come.

Thinking back to the start of your career with Kärcher,

what did you like especially about the corpor ate cul-

ture at that time?

I joined Kärcher nineteen years ago, shortly after the death of Irene Kärcher. Her formative influence on our corporate culture was still very noticeable. The same applies to her brother Eberhard Herzog, whom I had the privilege of getting to know personally and who was general agent of the company and Adminis-trative Board Chairman at the time. Each in their own way, they had the gift of reconciling different currents of opinion in the company in a highly civilised way, and of spurring their employees on to great achieve-ments. At the same time, they never forgot to cel-ebrate success and, despite all team orientation, to recognise good individual achievements. I saw that as a very positive element of the Kärcher culture, and that is why I also think it is so important to appreciate success.

In the same way as we analyse mistakes, when results are good we should pause briefly to appre-ciate what has been achieved.

Mr. Jenner, thank you for talking to us.

“In the same way as we analyse mistakes, when results are good we should pause briefly to appreciate that which has been achieved.” CEO Hartmut Jenner has special reason to do so when it comes to honouring deserving colleagues such as Wally Wagtmans (in the centre of the right-hand picture), the longstanding general manager of Kärcher-Benelux. Among those congratu lating him is Johannes Kärcher (left).

“Discipline is another

success factor. What

I care about most is

disciplined thinking.”

“What distinguishes

us is our ceaseless

striving to be

better still.”

The Company | Sustainability 19

On the final assembly line for hot-water pressure washers in Winnenden

Gesellschaftliche Verantwortung Nachhaltiges Wirtschaften 23

Good company results ensure profitable growth

Shaping the future – Sustainable management at Kärcher

Economic success and sustainable development have always been a fixed entity at Kärcher. Our busi-ness policy is geared to enduring and profitable growth that enables us to maintain our competitive-ness, our financial independence and our decision-making freedom. “In this connection, it is fundamen-tal that as a family-owned company we translate our results into investments that benefit the continuance of our company, society and environmental protec-tion,” said Kärcher CEO Hartmut Jenner. “The own-ers of our company do not withdraw their profits but reinvest them in the company. We use surplus earn-ings at the end of the year to shape our future.”

Kärcher invests worldwide

Kärcher invested extensively in financial year 2010 and inaugurated new buildings over the world. The former production and logistics centre in the Oberes Bühlertal, now the Bühlertal factory, was enlarged to provide nearly 10,000 square metres of additional usable space.

At our Schwaikheim location, work began in spring on a new 3,500-square-metre office building for 140 employees, plus a showroom and a training centre. This investment will amount to € 4.4 million.

Back in 2009, Kärcher Austria opened in Vienna

the extended central warehouse for Central and Eas-tern Europe.

At the Paulínia factory, Kärcher Brazil opened a new parts and machines warehouse. Five thousand square metres in area, it holds up to 2,200 pallets.

Another mainstay of Kärcher’s future-proofing ef-fort is training and continuous education. Last year, we trained 160 young people and took them on as em-ployees. Weekly foreign language classes and regular training courses for all employees guarantee a highly qualified workforce. Kärcher employees at our German locations receive an average of 2 days in-service trai-ning per year.

Research and development

The Research and Development division plays a key role at Kärcher, absorbing around 5% of total sales revenues annually. In the face of global competition, 600 engineers and technicians set stand ards with in-novative and environment-friendly prod ucts.

Many new products were launched last year, in-cluding the new Home Line cleaning machines for private households, the B 40 RS slimline step-on scrubber-drier and the TB gantry wash for commer-cial vehicles.

Kärcher employees are working together to achieve

profitable, sustainable growth of the company. All profits

are reinvested, in production at the Winnenden works, for instance, or in the research

department.

The Company | Sustainability 21

Within the framework of the KPS Award competition, employees pro-vide important stimuli for updating the Kärcher Production System.

Production and logistics processes are continuously improved by way of a competition

The Kärcher Production System – Learning from the Best

Whether in assembly, commissioning or service, the Kärcher Production System (KPS) involves work ing ceaselessly to optimise our production and logis tics worldwide. In doing so, our central focus is on produ-cing first-rate, treating resources responsibly and ef-ficiently, and on our employees’ contribution toward the company’s success.

One incentive to effective implementation of the system is the KPS Award, a competition held an-nually at Kärcher factories worldwide with the motto “Learning from the Best.” The individual teams’ ob-jectives include, for example, improving labour pro-ductivity, throughput times, stocks of materials, and production quality. Environmentally friendly produc-tion processes and ergonomic workplaces also have high priority.

KPS Award 2010 – Numerous improvements in production and logistics

Eleven plants submitted projects for the 2010 KPS award. This year’s winner was the Bühlertal factory’s Warehouse Efficiency project. Employees reduced access times and routes in the parts store and im-proved disposal logistics, achieving cost savings of several hundred thousand euros a year.

Second place went to the Illingen plant, which switched its entire production operation to a pull-based inventory control system. Materials are no longer purchased in line with a specified schedule,

but reordered when a specified minimum stock re-mains. This prevents production downtime due to a shortage of materials and avoids the holding of large stocks.

Two plants tied for third place, the Paulínia works in Brazil and the Monterrey factory in Mexico. In Paulínia, various KPS measures were put in hand to improve the factory’s efficiency. They included the procurement of new machines and workbenches to improve workplace ergonomics, and fitting safety de-vices to many machines in order to protect workers against accidents and injury. The goal in Monterrey was greater flexibility in production. This was achie-ved by introducing job rotation and by intensive the-oretical and practical training of employees.

Kärcher placs even greater emphasis on energy-efficient buildings and production processes

After seven competitions, managing director Thomas Popp is pleased with the results. The Kärcher Pro-duction System is now well established worldwide,” he said. “Nonetheless, we aim to step up our promo-tion and dissemination of knowledge about the indi-vidual KPS components at every location. A further goal is to involve all production employees in the pro-cess of continuous improvement. And finally we aim to make our plants even ‘greener.’ That will involve placing even greater emphasis on energy-efficient buildings and production processes.”

Thomas Popp, director of Supply and Technology, presents the 2009

KPS Award to Luis Mora, factory manager in Monterrey. Among those

who congratulated him were (from the left) Markus Asch, Professional

Products director, Management

Board Chairman Hartmut Jenner and KPS Manager Joachim Daiss.

The Company | Sustainability 23

In our sound measuring laboratory we use state-of-the-art measuring methods to test the efficiency of our low-noise kits, which keep the noise emissions of Kärcher appliances as low as possible. Cooperation with universities and in-stitutes and participation in research projects enables us to incorporate the latest findings into our product development.

The Alfred Kärcher Foundation promotes the mechanisation and automation of cleaning tasks

In Dialogue with Academics and Researchers

In inventing the first European hot-water pressure washer in 1950, Alfred Kärcher set a milestone in the field of cleaning technology. Now, it was easier than ever to remove stubborn dirt and to improve stan-dards in numerous, initially mainly commercial, fields.

Today, sixty years on, great progress has been made with the mechanisation of cleaning. Yet des-pite considerable advances, manual work in this field is still widespread. We have set ourselves the task of finding appropriate solutions to this.

Therefore, in addition to our investment in re-search and development, in 2002 we established the Alfred Kärcher Förderstiftung, a foundation with the declared aim of promoting the mechanisation and automation of manual cleaning work and of new sol u tions for maintaining the environment and keeping it clean.

Foundation sponsors mainly young scientists who research in the spirit of Alfred Kärcher

“We campaign to make research into all conceivable cleaning tasks more attractive and to make young scientists more interested in it,” said foundation rep-resentative Dr. Ulrich Hagenmeyer. “There is still no university chair devoted exclusively to cleaning tech-

nology. The number of academic studies in this field is correspondingly small. Yet innovations are the key to success. Therefore, we at the Alfred Kärcher För-derstiftung sponsor mainly young scientists who re-search in the spirit of Alfred Kärcher and use their ideas to tackle and solve technical problems.”

Making cleaning technology jobs easier and developing further applications

The foundations awards prizes for outstanding di-ploma theses, student research projects, disserta-tions and professorial dissertations. At a biennial in-novation awards ceremony, the foundation presents the Alfred Kärcher Award to researchers and stu-dents whose work has made a valuable contribution toward progress in the field of cleaning technology.

The foundation also supports various research projects, awards commissions and provides non-mon-etary resources. In addition, it initiates congresses and events. Dr. Ulrich Hagenmeyer said, “We want to strengthen dialogue with academics enduringly and to network the research landscape so as to ex-change and broaden knowledge. Our goal is to make existing tasks in cleaning technology easier and to develop further applications.”

At a biennial innova-tion award ceremony,

the Alfred Kärcher Förderstiftung, a

chari table foundation, awards the Alfred

Kärcher Förderpreis to research scientists

and students.

The Company | Sustainability 25

16 Diversity | Nachhaltigkeitsbericht

The Company | Social Responsibility 27

In the face of global competition, employees bank on lifelong learning

Skills Training Excellence – a Future with Kärcher

Kärcher gives many young people the opportunity to train for a qualification that will give them the best opportunities to make a good start to their working lives. Qualifications range from technical draughts-man and cook, process mechanic and industrial clerk right through to graduate in business manage-ment, mechanical engineering or industrial engineer-ing. This initiative, which is geared to sustainability, goes under the heading of “Yellow Future,” a future with Kärcher. Under its auspices, the company cur-rently offers 160 apprenticeships and traineeships, and the trend is rising.

Cooperation with vocational academy and universities

Vocational training in so many fields requires compet-ent partners. One of them is the Technical Studies Department of Stuttgart Vocational Academy. Kärcher has worked closely with the academy for years. During this time it has trained more than 100 engineers, industrial engineers, business administra-tors and business IT specialists. Two of them are now managing directors of our German sales com-pany. “A company like Kärcher profits especially from collaboration with the Vocational Academy,” said Human Resources Manager Rüdiger Bechstein. “For us as cleaning equipment manufacturers, the suc-cessful combination of theory and practice is particu-larly important, since they are more closely linked in our daily work than in other sectors.”

We also maintain a cooperative partnership with the Karlsruhe Technical University. Students on its Ger-man-French mechanical engineering course (DEFIS) can apply for a scholarship funded by Kärcher. This is our way of helping future engineers to gain not only specialist knowledge but intercultural know-how. We also sponsor successful graduates from Stuttgart University by awarding the Alfred Kärcher Prize for outstanding diploma theses in the mechan ical engi-neering faculty. At Esslingen University, we award the Irene Kärcher Prize.

Help with initial vocational orientation

A host of awards and prizes are testimony to the fact that people who complete their training with Kärcher are among the best in their fields. In fact, train ing never ends at Kärcher. Employees see their profes-sion as a lifelong learning process, and take sponsor-ship to attend technical and masters’ schools or at-tendance at evening classes and seminars for gran-ted. They see constant change in the face of global competition as an opportunity. Kärcher also helps young people with their initial vocational orientation, for instance by running a “Girls’ Day” and vocational preparation camps, and by providing job application training in schools. We also run a “Fit for Job” trainee support scheme, whereby experienced Kärcher em-ployees make themselves available in a voluntary capacity to give advice on any questions relating to job applications.

Budding industrial mechanics in the Kärcher training

workshop.

The Kärcher enterprise collaborates with the Samariter-Stift/Fränkische Werkstätten in Obersontheim, including in the area of dispatch. People with mental health problems prepare up to 40,000 items a day for transport.

The Company | Social Responsibility 29

Many years of successful cooperation with the Samariter-Stift/Fränkische Werkstätten

Helping Hands – Proud of Working for Kärcher

Kärcher has been working with the Samariter-Stift/Fränkische Werkstätten charity in Obersontheim for many years. The organisation provides therapy for people with mental health problems by way of regular daily work. We began working together in 1993.

The charity now has fully equipped, modern workplaces where nearly 100 employees of the Frän-kische Werkstätten metal section produce and pack items for Kärcher, including various turning, drilling and milling components for numerous assemblies and products.

The electrical workshop produces small sub-as-semblies, while the dispatch department gets re-place ment parts for numerous items ready for trans-port. Fränkische Werkstätten workers fill two large containers a day for the factory and logistics centre. Just in Time production and a reliable daily output result in short throughput times. In addition to pro-duct-related work, Fränkische Werkstätten personnel also look after the factory grounds.

Works council member Joachim Koplin, who is employed in the prepackaging section of the Ober-sontheim Logistics Centre, can rely on his colleagues from the Samariter-Stift. “I know exactly what they

will manage,” he said. In return, this means being avail-able for those employees when interpersonal conflicts arise. “As a Christian, I take it for granted that you should look after sick people and integrate them,” he said.

Samariter-Stift Workshop Manager Bernd Otter said, “We try to help our patients to help themselves. This starts with gradual induction into the workplace, increasing concentration, communicating discipline and training them to be punctual.” This is done with the aim of giving the mentally ill a place back in so-ciety, thereby enhancing their self-awareness and giving them reassurance and recognition.

Structured work routines and collaboration with industry are practical means of helping people to get back on their feet. “Here, no-one needs to hide, be-cause mental illness can affect anyone,” Bernd Otter said. He is proud of the full posts that the more inde-pendent of his charges occupy in the logistics centre itself. “It’s interesting that these people like to say that they work for Kärcher, not for the Fränkische Werkstätten,” he said.

“We work for Kärcher” – Sustainability has a lot to do

with setting people a task. People at the Samariter-Stift/

Fränkische Werkstätten charity in Obersontheim are proud to

work for Kärcher.

Cleaning the Goose Fountain in Backnang. Small-scale monuments also benefit from Kärcher cultural sponsorship.

“First-rate work for cleanliness and value preservation:” Cultural sponsorship at Kärcher

Preserving Treasures of the Past

“Top performance for cleanliness and maintenance of value” – this claim was committed to writing in the Kärcher mission statement, and we take it very seri-ously. For many years we have carried out re stora tive cleaning projects on works of art and listed buildings all over the world so as to preserve them for poste-rity. This work is always carried out in close collabo-ration with restorers, art historians and other scien tific experts. That is how we ensure that the best cleaning method for each monument is applied.

Kärcher has already demonstrated its compet-ence in more than 90 out-of-the-ordinary cleaning projects in every continent. They include the cleaning of the statue of Christ in Rio de Janeiro and parts of the Statue of Liberty in New York. After the Berlin Wall came down, Kärcher gave the Brandenburg Gate, the symbol of German unity, a thorough cleaning. In 1998, in our largest project to date, we used a newly developed blasting process to clean the Colonnades on St. Peter’s Square in Rome. It took nine months to clean a total area of 25,000 square metres.

In spring 2002 a team of Kärcher specialists re-moved a coating of grime that was damaging the stone of the Colossi of Memnon in Luxor, Egypt. This

prevented these 3,300-year-old figures, which weigh more than 800 tons, from further decay.

In collaboration with park rangers and employees of a company specialising in rope access technol ogy, in summer 2005 our application engineers cleaned the presidents’ heads on Mount Rushmore, South Dakota, USA. Pressure washers were used to remove lichens, algae, mosses and other organic matter that would have done permanent damage to the monu-ment through bio-corrosion.

Small-scale monuments such as fountains and sculptures benefit

We regularly carry out smaller-scale cleaning projects free of charge on objects that are less prominent, but no less important to us, whether they be fountains, sculptures or surfaces defaced by graffiti.

This unusual type of cultural sponsoring is Kärcher’s highly personal and individual way of dealing with our cultural heritage. It extends far be-yond mere donations. We not only put up money, but also commit our experience, our knowledge and our technology.

As part of our ex-ceptional cultural sponsorship pro-gramme we also

cleaned the statue of Christ in Rio de

Janeiro and the 185-metre

Euro mast in Rotter dam.

The Company | Cultural Sponsorship 31

Restaurierung der Lügenbrücke im rumänischen Hermannstadt mit Trockeneisstrahlen. Farbschicht um Farbschicht wird schonend entfernt, die Gusshaut an der Ei senoberfläche bleibt dabei erhal-ten, sie stellt einen wichtigen, natürlichen Korrosions schutz dar.

Kärcher involvement in European Cultural Capital of 2007

Icy Restoration of Liar‘s Bridge in Sibiu

Our IB 15/80 dry ice blasting machine is traditionally used for cleaning machines, moulds, conveyor belts and tools. At the Liar‘s Bridge in Sibiu, Romania, Kär-cher proved that it can also be a valuable aid to resto-ration. Old paint layers were carefully removed from the bridge, which was built in 1859, restoring it to its former glory in time for events scheduled during the city’s year as a European Capital of Culture in 2007. It was the first flat cast iron bridge in Southeast Eu-rope and only three of its kind survive in Europe. It is commonly known as the Liar‘s Bridge, because le-gend has it that it will collapse as soon as a liar steps onto it.

“The main challenge of this three-week project was to avoid damaging the original cast-iron of the bridge, which is very popular in Romania,” said appli-cation engineer Thorsten Möwes. “So before starting the project we set up test areas in order to ascertain the correct method of cleaning the Liar‘s Bridge.” Since dry ice blasting can be applied very gently, Möwes was able to remove several old layers of paint without destroying the casting crust on the surface of the iron, which forms a natural protection against corrosion.

That would not have been possible with conven-tional methods such as brushing or particle blasting.

Dry ice blasting involves using compressed air to ac-celerate solidified CO2 snow up to the speed of sound.

The temperature of the pellets is -79°C and when they hit the “dirt,” the difference in temperature and kinetic energy cause it to become brittle and break. Subsequent particles penetrate into the cracks, where they sublimate from a solid aggregate into a gas. At the same time, their volume increases by a factor of 400, so the dirt is blasted off, while the blas-ting medium literally dissolves into air. Since the ma-chine uses no chemicals, there is no dirty water to dispose of.

The brick wall that runs alongside the Liar‘s Bridge, which has a ten-metre span, and the bridge’s sandstone block foundation were cleaned with a Kär-cher blasting gun. Finally, the bridge was recoated at our cost and the lettering and coat-of-arms were gil-ded with gold leaf.

The restoration was carried out in cooperation with a representative of the state office for the preser-vation of ancient monuments in Stuttgart, the Re-search Institute Precious Metals and Metals Chem-istry in Schwäbisch Gmünd, and conservation ex-perts from AeDis GbR in Hochdorf.

Kärcher restored the Liar‘s Bridge in Sibiu,

Romania, using a new kind of dry ice blasting process.

This technique made it possible to remove old

paint layers gently.

The Company | Cultural Sponsorship 33

Committed to upholding the tradition of European musical culture: The two ensembles of the Bach Academy Stuttgart, the Bach Collegium and the Gächinger Kantorei Stuttgart.

Photo: Martin Sigmund

Close partnership between Kärcher and the International Bach Academy Stuttgart

Promoting Young Musicians Worldwide

Support for art and culture has always been a high priority at Kärcher. Our aim in becoming involved is to promote artistic work and to communicate to our employees and people interested in the arts the ple-asure to be gained from cultural activities.

A longstanding partnership exists between Kärcher and the International Bach Academy Stutt-gart. The Bach Academy was established in 1981 by Helmuth Rilling, who is also its artistic director. It sup-ports both the Gächinger Kantorei and the Bach Col-legium Stuttgart ensembles, along with the Festival Ensemble. The International Bach Academy stages concerts in Germany and abroad, and organises workshops known as Bach Academies for young

musicians all over the world. It runs masters’ cour-ses, musicological seminars and symposia, and has a permanent research and further education centre that is dedi cated mainly to the life and work of Jo-hann Sebastian Bach. It explores the composer’s roots and researches his impact on the classical, romantic and modern periods, with a main focus on contemporary music.

The Internationale Bachakademie Stuttgart regu-larly commissions new works, thereby making its contribution to the future of contemporary music.

Helmut Rilling: “We feel committed to the tradition of European musical culture”

As organiser of an annual series of concerts with choir music in the Liederhalle, the Bach Week and the European Music Festival, the Bach Academy has an enduring impact on the cultural life of the Stuttgart region. “We feel committed to the tradition of Euro-pean musical culture and work to keep it alive,” Hel-muth Rilling said. “But the International Bach Acad-emy is also open to the musical traditions of other cultural groups. We pass on our knowledge and ex-perience to young musicians all over the world, and train future musicians in our master classes, in the Festival Ensemble, and in the orchestra. The enthusi-asm of these young people rebounds on us and gives us strength to shape the future together.”

Workshops for young musicians all over

the world, seminars, symposia and concerts: For many years, Kärcher has supported the Bach

Academy founded in 1981 by conductor Hel-

muth Rilling.

The Company | Cultural Sponsorship 35

Once a year, we organise a “stream clean-up” on the site of our Winnenden works. Motivated trainees spend a whole day clearing the past year’s accumulated rubbish from the Buchenbach stream and its banks.

We take environmental aspects into account in all corporate processes worldwide

Taking Responsibility for Our Environment

As the world’s leading developer, manufacturer and seller of cleaning systems, Kärcher is conscious of its global responsibility for preserving vital natural re­sources and an unspoiled environment. Kärcher rec ­ognised very early on that protecting the environment is indispensable as the third pillar of enduring, sustain able business development. The linkage of in­novation, production, health and safety at work and environment al protection is anchored in the company mission state ment. We pay strict attention to compli­ance with en vi ronmental standards at all our produc­tion locations.

The environmental management system at our Winnenden headquarters was certified back in 1996 as complying with international norm DIN EN ISO 14001. This made Kärcher the first company in its sector to receive this environmental certification. The environmental characteristics of our appliances are continuously improved. Thus, Kärcher drew up the world’s first ecological balance sheet for a high pres­sure cleaner and introduced an environmental check­list for every new product.

Environmental protection at Kärcher means put­ting into practice an annually updated environmental programme that ensures improvements rather than just standing still. It means that all departments an­nounce environmental objectives for the current year and implement them. The results are pretty impres­

sive. For example, we installed two solar power sta­tions that save 20,000 kg of carbon dioxide an nually. The use of waste heat from ventilation systems and production processes to heat factory halls and water for showers also helps to protect the environment. We prevent more than 100,000 kg of CO2 emissions each year in this way. The woodchip heating system in Oberes Bühlertal reduces CO2 emissions by around one million kg a year. A further contribution to climate protection is made by a geothermal system that is used for heating in winter and air­conditioning in summer. The cleaning of 75,000 cubic metres of ground water a year for industrial use in testing appli­ances saves precious drinking water.

The Kärcher company encourages its em ployees to travel to work in an environmentally friendly way by reimbursing 50% of local public transport costs. It holds environmental training courses on topics such as waste avoidance, water, or hazardous substances. Waste dis­ posal instructions and information boards help to en­sure that waste is cleanly separated and avoided wherever possible. Once a year, trainees at the Winnen­den works clean the Buchenbach, a partly renatural­ised stream that is a biotope on the factory site. We give high priority to optimising the environmental character­ istics of our products. To this end, the central Research and Innovation department cooperates with Darmstadt Technical University and the Fraunhofer Institute.

Two solar power stations

save 20,000 kg of carbon dioxide

a year at Kärcher.

The Environment and Us | Environmental Protection 37

In recent years the number of units that we produce has risen continuously. At our German locations we now pro-duce nearly 25% more machines than in 2005. Yet thanks to the use of energy-saving technology, to systematic avoidance of waste and to other measures to protect the environment, the environmental impact has hardly in-creased. In some areas we have even managed to reduce it significantly.

Bühlertal plant

Environmental indicators

CO2 emissions: constant despite increased production

Although our production volume has risen by nearly 25% in the last four years,

CO2 emissions remained al-most constant. The woodchip

heating system alone saves around 1,000,000 kg of CO2

per year. Two photovoltaic systems at the Winnenden

works save a further 20,000 kg per year. Insulation of buil-

dings, geothermal energy, heat recovery and use of wa-ste heat also make an impor-

tant contribution toward climate protection.

Waste: more than 95% is recycled

Waste is avoided as far as possible, for example by

using reusable packaging when delivering production material. More than 95% of

waste is recycled and the rest is disposed of in an en-

vironmentally friendly way.

Use of renewable energies such as photovoltaics reduces CO2 emissions.

Waste is systematically sorted and where possible recycled.

Figures in t

Figures in t

2006 2007 2008 2009 2010

20,487

23,348

22,320

21,223

22,658

2006 2007 2008 2009 2010

4,13

6

4,63

2

4,77

6

3,59

5

2,84

8

The Environment and Us | Environmental Protection 39

Water: systematic recirculation

2006 2007 2008 2009 2010

145,02

8

177,83

8

193,72

6

156,48

1

145,04

7

No Kärcher machine leaves the production section

without a final quality and function test, for which

pressure washers naturally need water. However, water

consumption is noticeably reduced by recirculation. At the Bühlertal plant, for exa-

mple, 95% of the water is recycled.

Heating oil: Partly replaced by wood, a renewable energy source.

Heating oil is need for heat-ing, for generating process

heat, and for testing pro-ducts such as hot water pressure washers. Since

autumn 2008 a wood chip heating system has heated

part of the Oberes Bühlertal Kärcher plants. This reduces

heating oil consumption by 340,000 litres per year, as

the chart illustrates.2006 2007 2008 2009 2010

969,00

2

1,01

2,16

0

854,33

6

648,27

8

626,06

7

A K 3.91 MD pressure washer undergoing quality and function tests at our factory in Quistello, Italy.

The woodchip heating system covers 85% of the heat require-ment at the Obersontheim factory and the logistics centre.

Figures in t

Figures in t

40 The Environment and Us | Environmental Protection

Environmental indicators

Gas: Heat recovery and insulation cut demand

Gas is used mainly for heat-ing. Heat recovery, geother-

mal energy and numerous other projects such as better

insulation of buildings help to keep gas consumption as

low as possible despite the many new buildings.2006 2007 2008 2009 2010

673,43

7

918,19

5

747,06

6

761,41

8

926,48

5

Electricity: energy-saving measures show results

Despite higher production fi-gures, energy consumption has remained constant over

the past three years. This was mainly due to diverse

energy-saving measures such as the use of energy-

saving light bulbs and moti-on sensors, reduc tion of en-

ergy consumption in produc-tion, and energy-saving tips

for the office.2006 2007 2008 2009 2010

23,040

,662

26,183

,172

25,606

,862

24,894

,543

26,669

,685

An injection moulding machine clad with insulating material. Heat is retained longer for processes and electricity is saved.

The building erected in 2009 over the testbed in Winnenden is equipped with modern insulation and state-of-the-art technology.

Figures in t

Figures in t

The Environment and Us | Environmental Protection 41

Recording of Sabine Sohn‘s journey to work at Kärcher. Employees who collect at least 20 stamps on their bicycle card take part in a draw.

The Kärcher mobility concept encourages the use of public transport

Environmentally Friendly Travel to Work

Kärcher’smobility concept also includes fuel

economy courses and the highly

popular bicycle card.

Sustainability Report | Environmental Protection 43

“I cycle through Winnenden to work at Kärcher as often as I can, because cycling is environmentally friendly and keeps me fit,” said Sabine Sohn from the foreign company participations controlling depart-ment. She appreciates the Kärcher mobility concept. When she arrives at the company headquarters in Alfred-Kärcher-Strasse, the gatekeeper stamps her bicycle card to confirm that she cycled to work. Sa-bine Sohn has already collected a good dozen stamps. All cards that have been stamped at least 20 times take part a year-end draw. More than 500 bi-cycle tickets are entered.

50 to 75 per cent allowance for using buses and trains

The mobility concept is a component of our Environ-mentally Friendly Travel to Work campaign, which was launched in 1994. The bicycle card is one of a series of initiatives at Kärcher for making the daily journey to work as environmentally friendly as pos-sible. Anyone who uses local public transport has 50% of the cost of their weekly, monthly annual bus and train season ticket reimbursed. Trainees get as much as 75%.

Employees also make use of the Kärcher intra net to organise their journey to work. Those who have to

travel by car can look out for a lift or offer a car-sha-ring arrangement.

Fuel-saving driving courses help reduce fuel consumption considerably

Fuel economy courses help to achieve a considera-ble reduction in petrol consumption and are also de-signed to help reduce fuel consumption on business journeys. In collaboration with the General German Automobile Association (ADAC), Kärcher organises these training courses and pays those costs that are not covered by state gov ernment subsidies. The re-sults are remarkable. Partici pants can reduce their petrol consumption by up to 30%.

In our environmental programme, which sets out twenty goals, we have stated among other things that we will only buy company cars with diesel engines if they are fitted with a carbon particulate filter. Our fleet also in cludes vehicles that run on liquid gas. Employees to travel to work in electric cars can replenish their bat-teries free of charge. Kärcher has won several prizes for its commitment, including, in 2004 the first Business On the Move (Wirtschaft in Bewegung) award for the Kärcher mobility management system, and the 2004 Environment Prize of the federal state of Baden-Württemberg in the Industry category.

Motor production

Sustainability Report | Environmental Protection 45

Environment and Climate Protection Working Group looks for savings potential at every location

One touch of a button produces great results

Mr Leschtar, the Environment and Climate Pro-tection Working Group was set up last year at the company headquarters in Winnenden. Why was that? After all, environmental protection was al-ready a very high priority for Kärcher.

That’s right, we at Kärcher have been committed to the environment for a long time. In recent years, how ever, people have become acutely aware of the need for climate protection and its increasing ur-gency. So we set up the Environment and Climate Protection Working Group as a body to deal with both aspects. In doing so, we felt it very important not to locate this topic in our environment depart-ment, but to anchor it throughout the company.

How do you ensure that?

Colleagues from all key divisions are members of the working group. They include, for example, col-leagues from the strategy department, from product development and category management, from pro-duction planning, logistics, facility management and travel management. At our meetings we discuss where at Kärcher we can do something about the environment and climate protection. For example, we consider how to reduce energy consumption in production, and where there is scope for optimisation in our offices.

What has happened since the working group was set up? Are there any initial results?

First we agreed a common objective and determi-

ned that we would take environmental and climate protection forward at Kärcher in both production and administration. We collected an extensive set of ideas, then systematically pursued promising sub-jects. During this process, we implemented one very nice project at our Winnenden production plant, where we insulated three injection moulding machines at a point where previously a great deal of heat had been lost. This insulation saves us 75,000 kilowatt hours a year. Another example is waste heat recov-ery, which was initiated by our facility management section. Rather than simply blowing the heat required for injection moulding of plastics into the air, we re-use it to heat the production halls. That saves many thousands of litres of heating oil annually, cutting CO2 emissions by about as much as a medium-sized car would produce in its entire lifespan. The great thing is that all these projects not only help the environ-ment but also cut our costs substantially.

Where do you see further energy-saving potential at Kärcher?

Of course we consume most energy at our production sites. So since last year we have been conducting a re-search project with the Fraunhofer In-stitute to identify where in production we have the largest savings potential. But we can also achieve surprising impro-vements in administration by pay-ing attention to very simple things such as switch ing off our computers, pr inters and lights at the end of the working

Environment Officer

Axel Leschtar

Environmental Officer Axel Leschtar is a member of the Environment and Climate Protection Working Group. In an interview, he talks about the group’s work and goals.

Sustainability Report | Environmental Protection 47

day or reducing our PC monitor brightness to 60%. That may seem banal, but systematic implementa-tion of all these small steps is certainly not. Sustain-able climate protection starts precisely with all these daily routines, which taken together achieve a great deal. Incidentally, we drew up ten energy-saving tips for administration that have been posted at Kärcher Inside.

In order to continue developing the company successfully in the long term, annual targets play an important role at Kärcher. Does something simi lar exist as regards environmental and cli-mate protection?

Yes, we have been agreeing annual environmental targets since 1996 and incorporating them into our adopted environment programme. First we ask all divisions of the company to state their goals for the coming year, and receive 50 to 60 suggestions. We examine every suggestion, define the 25 goals that can best be implemented, and submit them to the management board for approval. Then every three months we launch an inquiry to monitor progress with implementation of the individual measures. This systematic, binding procedure has proved its worth because many fine projects have been implemented

in different areas. For example it was our Facility Man-agement department’s idea to build a woodchip heat-ing plant at Obersontheim. This now enables us to save around a million tonnes of CO2 each year. Our canteen has been awarded the Bio-Seal certifying that it meets EU organic standards, and our hot-wa-ter pressure washers come with an Eco setting that can reduce heating oil consumption by 20% to 25%.

What are the next steps for the Environment and Climate Protection Working Group?

Our ideas on environmental and climate protection will first be tested in practice at our German sites. Our aim, however, is to implement successful ideas throughout the Kärcher world. For this to succeed, we also want to strengthen and internationalise the Working Group’s communications. We recently made a start by regularly publishing an energy-saving tip of the month on the company’s intranet. The Environ-ment and Climate Protection Working Group wants to promote the implementation of good ideas and to collect suggestions for further improving environmen-tal and climate protection both at Kärcher and out-side the company.

Mr Leschtar, thank you for speaking with us.

Would you like to know more about us? Call us or write to us at:

Press and Public Relations/Environmental ManagementFrank SchadTel.: +49 7195 14-2684frank.schad@de.kaercher.com

Alfred Kärcher GmbH & Co. KG Alfred-Kärcher-Strasse 28-40D-71364 WinnendenTel.: +49 7195 14-0Fax +49 7195 14-2212www.kaercher.com

05/2011