To achieve our corporate objectives, we must have an efficient organizational structure that ensures the greatest possible proximity to both markets and customers, a high degree of flexibility and entrepreneurial potential.

The structure of the EPCOS Group comprises three operative units and the corporate departments, which are integrated into the TDK-EPC Group. The operative units of EPCOS comprise the business groups,  Sales, and subsidiaries.

The worldwide sales organization of EPCOS is integrated into the sales network of TDK-EPC and has the task of ensuring maximum market coverage with optimum economy. It is directed by EPCOS AG’s Corporate Sales, whose management reports to the Management Board and includes the business administration function.

The regional sales units are organized as EPCOS sales companies, as entities of EPCOS subsidiaries or as departments of Corporate Sales. Each regional sales unit is headed by a general manager, who is assisted by a business administration manager. The managers of the sales units report to the head of Corporate Sales. Sales resources are assigned in consultation with the business groups.

The regional sales units link the business groups. They are their equal partners and possess a high degree of empowerment. For our customers, they are the major point of contact, offering advice on all business covered by the company.

The heads of subsidiaries, like those of the regional sales units, are also assisted by commercial managers. If the subsidiary’s operations are assigned to a specific business group or to Corporate Sales, the head of the subsidiary reports to the manager of the designated organizational unit.

The reporting requirements of subsidiaries with mixed activities are determined ad hoc. Their organizational structure must reflect clear lines of accountability to the business groups or to Corporate Sales.

The business groups and Corporate Sales work in close cooperation with the subsidiaries’ management on any decisions affecting the operations of the subsidiaries assigned to them.

Each subsidiary has a board, a shareholder delegation or an advisory council.

The corporate departments support the Management Board in conducting the company’s affairs, in coordination of company-wide tasks and in risk management. In addition, they establish policies and perform advisory and service functions for the business groups. In addition, Corporate Sales also has operative responsibility.

Corporate Sales (S)
Corporate Sales manages EPCOS’ global sales organization. It owns processes such as:

• Organizational development and expansion of regional sales companies,
• Organization of order processing, sales systems, sales logistics and the
  underlying data processing workflows,
• Customer contracts,

• Analysis, reporting to the Management Board and financial controlling.

   

Business Administration (BA)

Business Administration is the process owner for controlling at the Group's business groups and subsidiaries. It is supported by Corporate Accounting, Controlling and Taxes (AC) and Corporate Finance, Subsidiaries, M&A and Insurance (FIN), both of which report to BA.

Business Administration has direct access to all key data that is needed to assess the economic position of the EPCOS Group. It reports any material findings immediately to the Management Board and helps the latter to define, introduce and complete appropriate actions. Business Administration exercises its regulatory and directive authority for all accounting and financial issues in close consultation with the Chief Financial Officer.

AC is responsible for issues such as:

• Consolidated financial statements,
• Financial reporting and controlling,
• Taxation,
• Accounting.

The business groups, subsidiaries and sales organization are responsible for efficient and functioning local accounting and controlling.

FIN is responsible for issues such as:

• Financing and cash management,
• Acquisitions,
• Corporate law matters for subsidiaries and associated companies,
• Insurance.

Human Resources
Corporate Human Resources (HR) is the owner of processes such as:

• Coordination and formulation of enterprise-wide human resources policies and issues,
• Provision of efficient tools for personnel recruiting, training and development,
• Provision of personnel management support to senior executives, including handling all matters concerning labor law.

The local human resources departments are responsible for routine local personnel issues.

Information Technology and Logistics (ITL)
Corporate Information Technology and Logistics (ITL) is the process owner for issues such as:

• Definition of centralized and cross-business group logistics processes and their translation into business processes,
• Operation and ongoing development of central IT systems,
• Coordination of enterprise-wide IT activities and processes,
• Information security and data protection.

Responsibility for local organization, information and logistics issues rests with the local facilities of the business groups and subsidiaries.

Legal Department (LD)

The Corporate Legal Department owns the processes that govern the provision of advice to the Management Board, the operating units and the corporate departments on all aspects of law (with the exception of labor law). LD also provides legal advice to the Supervisory Board.

The head of Corporate Legal Department also acts as Chief Compliance Officer (CCO). The CCO's responsibility is to supervise Group-wide compliance with laws and with »EPCOS Reporting Principles«, and to ensure that the code of conduct and rules laid down in the »Corporate citizenship« section of the said document are observed. The CCO is assisted by a deputy, the head of the corporate department Internal Audit, and by the compliance officers assigned to the following issues: export controls, customs, environmental protection, occupational safety, radiation protection, data protection, information security and antitrust law. Further support is provided by EPCOS’ regional compliance officers. The latter are the individuals who head the internal audit units at each location.

Internal Audit (IA)
Corporate Internal Audit is the process owner for issues such as management audits, process audits and ad-hoc investigations, which as a rule are performed on behalf of the Management Board. In addition, IA coordinates auditing activities throughout the Group's subsidiaries and bears managerial responsibility for all enterprise-wide activities relating to the Sarbanes-Oxley Act.

Irrespective of these duties, the business groups and the sales organization are responsible for the proper execution of operating processes.

Technology and Quality (TQ)
Corporate Technology and Quality owns processes such as:

• Ongoing improvement of the Group's quality and environmental management systems,
• Maintenance and ongoing development of central quality tools and process directives,
• Coordination of consistent quality reporting,
• Conclusion of cross-business group quality assurance and technical agreements and preparation of statements in response to general technical inquiries from customers,
• Coordination and monitoring of cross-business group quality assurance programs,
• Coordination of the certification of quality and environmental management systems,
• Coordination of technological cooperation with partners, patent owners and licensors,
• Coordination of patent-related issues.

In addition, TQ represents the EPCOS management on issues of occupational safety, fire protection, environmental protection and product safety.

Corporate Center(CC)
The Corporate Center (CC) consists of two areas of responsibility, Corporate Planning and Corporate Communications.

Corporate Planning uses market analysis and research methods to provide and continually update the database that supports strategic planning both for the Group as a whole and for its individual business groups. Corporate Planning is the process owner for issues such as:

• Research, analysis, editing and documentation of data and information that is of relevance to the Group's business, especially with regard to the economic situation, industries served, target markets, customers and competitors,
• Identifying and analyzing potential cooperation partners,
• Exploring and evaluating new business opportunities.

Corporate Communications creates customized content and formats for its target audiences and employs state-of-the-art communication technologies and platforms to continually inform them about EPCOS. The strategic goals are to motivate and persuade both internal and external audiences for the company, to support the marketing of our products, to report on business development, and to protect and strengthen our good reputation. Corporate Communications owns the processes for issues such as:

• Brand management,
• Editing and publication of product news, technical articles, technical product literature, as well as financial and corporate news and articles,
• Editing and production of financial and annual reports,
• Organization and realization of participation at trade shows and the execution of advertising campaigns,

• Ongoing development of both the functionality and content of EPCOS’ electronic communication platforms.

   

Further elements of the management structure

Corporate Controller

The CFO is the corporate controller of the EPCOS Group. The corporate controller has direct access to information required to assess the economic situation of the business groups and subsidiaries as well as the authority to issue guidelines and directives for all accounting and financing issues. The corporate controller is obliged to report regularly to the President and CEO and, if required, to the entire Management Board. Any material findings must be reported to the Management Board immediately.

Executive appointments in business administration within the EPCOS Group and executive development measures in business administration require the prior approval of the corporate controller.

Executive Committee

The Executive Committee serves as a forum of discussion that addresses all major issues of importance to EPCOS as a whole and business development in the business groups and subsidiaries. The Executive Committee consists of the Management Board, the presidents and heads of business administration of the business groups and of Corporate Sales, and the heads of other corporate departments.

The Executive Committee is convened by the President and CEO.