Christopher Tesch, IPRN Annual General Meeting Prague, May 17, 2011 Effective Communication in China

2 © JP│KOM GmbH Introducing JP│KOM

3 © JP│KOM GmbH Facts & figures Communications to enable your company to achieve its strategic objectives: We help you to minimize risks and maximize opportunities. Founded1994 Management team Jörg Pfannenberg Arne Borgards Bert Wichmann OfficesDüsseldorf, Frankfurt am Main Permanent/contract staff25/2 Gross income million Euros

4 © JP│KOM GmbH Well connected JP│KOM is an independent owner-managed agency – with a strong network of partners in Germany and internationally.

5 © JP│KOM GmbH Our service lines

6 © JP│KOM GmbH Satisfied clients CI/CD, change comm., press and public Relations Ongoing since 2006Ongoing since 2007 CI/CD, corporate publishing, leadership comm. Internal and corporate communications/product PR Ongoing since 2002 Ongoing since 2008 CI/CD, corpporate publishing 2008 Press and public relations, consulting Ongoing since 2001 Internal communications Ongoing since 2010 Marketing communications, branding, corp. publishing Ongoing since 2008 Takeover communications Ongoing since 1995 Press and public relations, financial comm, corp. publ. Ongoing since 2004 Annual report, internal communications 2007 Initial Public Offering Issue of Equity Cultural Due Diligence, communications controlling 2007, 2008, Change communications, media and public relations Web 2,0, B2B newsletter, support media relations Ongoing since 2009 Ongoing since 2008 International communications, communications consulting Branding, positioning, corporate publishing Internal communications Product PR, media relations

7 © JP│KOM GmbH Case Study The official opening of SMS Meer Engineering China: Celebrating the new market presence in Shanghai

8 © JP│KOM GmbH The challenge 89 days until the opening of the first production site of SMS Meer in China 36 conference calls with Chinese and German team members 21 pages in the activity report to be done 12 measurable project goals defined 4 stakeholder groups to be addressed properly 2 time zones 1 chance to kick off new business in China

9 © JP│KOM GmbH The opening of SMS Meer Engineering China (SMEC) Customer SMS Meer (machinery and plant engineering) Objectives / needs of the client Increase market presence and establish new production site Strategy Create awareness among (potential) customers “Celebrate” the new market presence The quality of the communication activities mirrors the quality of the products and services Balanced messaging China – Europe Continuous tracking of the outcome

10 © JP│KOM GmbH SMEC Opening (Potential) Customers China Professional Public Employees China Employees Germany/Europe “We are even closer to you now.” “We provide quick customer support and speak your language" Key message: leading German technology – manufactured in China “With the new production site we improve production flexibility and thus our competitive position.” “The whole company and all employees will profit from this investment.” “Welcome to SMS Meer.” “We have ambitious goals – let’s reach them together.”

11 © JP│KOM GmbH Milestones and timing Jul 29, 2010 Kick-off meeting in Shanghai Aug 31, 2010 Invitations sent out Sep 10, 2011 Adverts in Chinese and German trade magazines Sep 21, 2011 Presence at “Tube China 2010” Oct 1, 2011 Corporate brochure in Chinese and English Oct 28, 2011  Employee welcome  Media briefing  Opening ceremony  Official banquet Nov 21, 2011 Media response analysis Coordination and Project Management Oct 21, 2011 SMEC Website Nov 29, 2011 Final presentation Documen- tation Official Opening Corporate Media Process supportPreparation

12 © JP│KOM GmbH Laying out the basis: Effective project management during three months

13 © JP│KOM GmbH Advertisements and trade media relations accompany the process

14 © JP│KOM GmbH Trade fair communication supports building up the image and announcing the new market presence

15 © JP│KOM GmbH Corporate media for professionally adressing the customers in Chinese and English

16 © JP│KOM GmbH 200 employees, 250 customers and 35 journalists participate in the official opening

17 © JP│KOM GmbH The grand final: official banquet with the Shanghai Symphony Orchestra

18 © JP│KOM GmbH The result: positive media response in China and Europe (local, financial and trade media)

19 © JP│KOM GmbH Satisfied customers: „The opening went as perfect as the technology from Germany“

20 © JP│KOM GmbH Tracking and evaluation with Balanced Scorecard Value LinksGoalOutcome Customers attending≥ 150  (250) Customer satisfaction (1 – 5)> 4  (4.6) Journalists attending> 30  (35) No. of clippings≥ 40  (49) Positive coverage by Chinese journalists70% positive 20% neutral 10% negative  (93% positive) (7% neutral) Positive coverage by European journalists67% positive 33% neutral  (90% positive) (10% neutral) Satisfaction European journalists with press trip (1 – 5)> 4  Overal satisfaction of management with project (1 – 5)≥ 3.8  Satisfaction of management with Employee Welcome (1 – 5)≥ Satisfaction of management with Opening Ceremony (1 – 5)≥ 3.8  Satisfaction of management with Official Banquet (1 – 5)≥ 3.8  Adherence to budgetMax. + 5% 

21 © JP│KOM GmbH Partnership for success With 500 employees and 23 locations, BlueFocus is the leading PR-agency in China. BlueFocus regularly gets top international rankings.

22 © JP│KOM GmbH Lessons learnt When doing PR in China …

23 © JP│KOM GmbH … choose your target media carefully

24 © JP│KOM GmbH … pay special attention to online media

25 © JP│KOM GmbH … establish a link to the Chinese market (culture, people, …) with your messages

26 © JP│KOM GmbH … keep an eye on the calendar (public holidays)

27 © JP│KOM GmbH … understand the guanxi (relationship) concept

28 © JP│KOM GmbH … focus on the similarities, not the differences

29 © JP│KOM GmbH Christopher Tesch Phone: Effective Communication in China