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Annual Report 2023

The market for communications and data networks remains attractive and demand is rising. R&M grew in its home market of Switzerland and in India in the 2023 business year, while other regions recorded declines in sales. A range for mobile antenna cabling was launched for the first time. Key information from the Annual Report can be found on this page.

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Management Message

Attractive market

R&M is growing in its home market of Switzerland and in India. Sales declined in other regions. This is the condensed summary of the 2023 financial year, which R&M closed with a minus of 13.4%.

The most important reasons: high inflation, rising interest rates, as well as geopolitical uncertainties. In the technology and market segments in which R&M operates, investments have been slowed down or postponed. Only the data center market remained stable. Business collapsed particularly in North and South America and in various European countries. Switzerland, India and other countries in Asia and the Middle East were able to escape the negative trend.

From our point of view, the market for communications and data networks remains attractive because demand is increasing. Data traffic continues to grow unchecked. New apps and services, AI, streaming, gaming, cloud applications, edge and remote computing, IoT and 5G are generating more data traffic. They are all demanding faster data transmission. Data centers, building, WiFi and broadband networks are therefore being expanded further. R&M supports customers with integrated infrastructure solutions, installation-friendly innovations and a powerful production network.

The market for communications and data networks remains attractive because data traffic continues to increase.

Thomas A. Ernst, Chairman of the Board of Directors, and Michel Riva, CEO

Positioning

Unlimited communication

The crisis-ridden year of 2023 showed just how necessary uninterrupted networks are. They support good and intelligent collaboration between people, companies, organizations, administrations and the media. Stable bandwidth and secure network communication are now basic needs, as important as power and water.

R&M shares the idea of perfect connectivity for uninterrupted communication. We defined this more precisely in the 2023 financial year by sharpening the R&M vision. It now reads: «We provide network infrastructure for unlimited communication.»

As a globally active provider of network infrastructures, R&M supports the markets today in a particularly dynamic time – the era of digitalization. Sixty years ago – when R&M was founded – a telephone outlet and twisted copper wires were all you needed; now, there has to be a cloud of universal network access. New apps, services and AI applications are appearing every day. They are confronting telecom companies, service providers, cloud providers and data center operators with serious stress tests.

With its mission «Connectivity that matters» and 60 years of experience, R&M knows how to design correspondingly powerful infrastructures. The focus is on holistic, integrated approaches.

We provide network infrastructure for unlimited communication.

Public Networks

End-to-end provider

The telecom industry is slowing down. In the 2023 financial year, it temporarily reduced investments in broadband and 5G roll-out.

In the competitive markets, it became clear that R&M is well positioned with the fiber optic portfolio for FTTH, broadband and 5G roll-out. There was strong demand for turnkey PoP stations in Germany and Belgium. In India, volume business with splice closures, cable assemblies and cabinets for base stations remained stable. In the Middle East, R&M once again impressed with end-to-end solutions for FTTH networks, especially from the fall of 2023.

The company entered the cell site cabling business in the growth market of India. With our CONEXIO modular system, cellphone companies can equip their 5G antenna sites with fiber optic cabling infrastructure quickly and at low cost.

We are increasingly focusing on being an end-to-end provider for dedicated telecom applications. Customers expect coordinated all-in-one solutions in order to be able to efficiently expand fiber optic networks with little time and personnel expenditure. Successful example: the turnkey PoP stations with integrated ODFs. Here, too, R&M offers a turnkey solution for FTTH projects.

R&M is becoming a provider of end-to-end solutions for dedicated telecom applications.

Data Center

The potential of integration

Growth in the data center market is more subdued than usual. Concurrently, investment pressure is increasing in view of the rapid developments in the digital world. Business development at R&M was in step with this market environment in 2023.

Data center operators are under increasing pressure to invest due to dynamic trends. One example is the spread of AI applications. Often, even more and specific computing power needs to be provided spontaneously. This is only possible if appropriate network and non-compute resources are available.

This is not just about high-density cabling, distributors and cabinets. The need for action continues. The layout of the computer room, power distribution, cooling, infrastructure management and other components have to be adapted concurrently.

This is where the R&M range comes in. The strategic development to become a provider of holistic, integrated data center infrastructure solutions was decisively driven forward in the year under review. R&M can deliver complete and modular non-compute infrastructures pre-terminated. Successful projects confirmed that we are positioning ourselves effectively with our holistic data center approach.

Successful projects confirmed that R&M is positioning itself effectively with its holistic data center approach.

LAN

In pole position

New technologies for LANs and smart buildings are waiting to be used. The intelligent building is already feasible today. However, the market is hesitating and actually cooled off in the 2023 reporting year. Nevertheless, countless buildings are in need of renovation. Climate targets and the demand for automation, WiFi, broadband and faster LANs require investments in network infrastructures.

Important for the future: Facility networks communicate better via the universal Ethernet/IP protocol. Smart buildings will thus have continuous Internet connectivity – from the FTTH connection to the controllers in the most remote corners of the building. This is called ALL-IP.

Structured cabling + Power over Ethernet (PoE) + Single Pair Ethernet (SPE) is the technology formula for future network infrastructures. R&M has mastered this formula and is one of the driving forces in the development of ALL-IP solutions for buildings. We are in pole position for PoE and SPE.

For the time being, the market is stuck in an investment backlog. We are using the time to fill top positions with new product developments for LAN and premises wiring. In the reporting year, these included the ready-to-use SPE solution and the new field-terminable FM45 Cat. 6A EL connector with die-cast zinc housing. It sets standards in terms of functionality, stability, format and quick installation.

Countless buildings need new network infrastructures for automation, WiFi, broadband and faster LAN.

Sustainability

Silver for sustainability

The rating agency EcoVadis once again awarded R&M a Silver Certificate. This was the greatest recognition of our progress in the area of sustainability in 2023. CSER targets and ESG indicators are increasingly being incorporated into day-to-day operations.

Some examples from 2023: For the first time, R&M presented a carbon footprint.

Almost all manufacturing facilities now operate with a standardized and certified environmental management system. An energy management system has been implemented at all of the company’s premises.

Product management and product development focus on ESG potential. New infrastructure solutions for data centers help to reduce power consumption. We promote cabling solutions for markets that contribute to decarbonization, e.g. for wind power plants.

A global network of sustainability ambassadors was formed in the reporting year. They promote dialog on the four spheres of activity and contribute to the internalization of the sustainability strategy by all R&M locations and employees.

The area of social affairs, labor and human rights was particularly significant in the EcoVadis rating. R&M demonstrates above-average employee-friendliness. Women are continuously encouraged to take on leadership and expert roles; 40% of management positions at R&M are held by women.

For R&M, sustainability is a basic condition for successful and meaningful participation in the market.

Owners

Sustainable Value Culture

The 2023 financial year once again reminded us of the need for entrepreneurial caution. Foresighted, sustainable action is required. R&M Owners Martin and Peter Reichle emphasize this in their review of 2023.

We are proud of our dedicated employees who are committed to the long-term interests of our family business.

Review 2023

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