Roland Berger Strategy Consultants Strong performance in a difficult market

Munich 18. 9. 2002 (PROTEXT/ots) - Cross-reference: photo wassent via satellite and is available at:http://www.presseportal.de/galerie.htx?type=obs * Growth is once again well above the industry average in 2002thanks to more globalized consulting services * Successful strategy of focusing on top management issuesthat bring are critical to sustainable value creation for ourclients * Seven strategic priorities for outperformers: Howstrategically and operationally excellent companies can growtheir sales, profit, and company value at above-average rates * Heavy investment in innovation, employees, and knowledgemanagement In a persistently difficult market, Roland Berger StrategyConsultants remains resolutely on course for sustained success.While the market as a whole is growing only modestly, RolandBerger is expecting another above-average increase in revenuesand profit - as in 2001 - and hence another record year. Annualrevenues will increase 8-10 percent to around EUR 550 million andprofit will climb 14 percent. In other words, in 2002, RolandBerger will grow at about three times the industry average.While competitors are having to lay people off, Roland Bergerwill increase its staff this year by at least 3 percent, to1,700. "In a strained economic situation and faced with intensecompetitive pressure, we are increasing our revenues and profit,boosting our shareholder value, and creating new jobs forhighly-qualified people," said Burkhard Schwenker, member of theExecutive Committee, at today's press conference in Munich."Once again, our international offices have been the strongestgrowth drivers, providing consulting services to our clientsaround the globe. All in all a positive performance in suchdifficult times." Fee volume will rise particularly sharply inthe US (+70 percent), Asia (+50 percent), and Central andEastern Europe (+60 percent). Global consulting activities areexpected to grow by 21 percent - four times the 5 percentincrease estimated for Germany in 2002. 2001 fiscal year: Outperforming the market - once again With fee volume up 16 percent to EUR 504 million, the Munich-based international strategy consultancy also grew at threetimes the overall market rate in 2001. On average, the top 50management consultancies posted growth of just 3-5 percent.Roland Berger Strategy Consultants, however, seamlesslycontinued its track record of above-average growth from previousyears: since 1995, the company has achieved average annualrevenue growth of 20 percent. In the same period, the globalmarket for strategy consulting expanded at only 11 percent p.a.This result confirmed the company's own performance trend: overthe past 31 years (since 1970), Roland Berger has seen itsprofits increase at an average of 27 percent per year, with 18.2percent annual growth in fee volume. One of the keys to thisimpressive performance lies in the fact that every consultantcurrently generates revenues of an outstanding EUR 457,000. Thisfigure puts Roland Berger among the industry's front-runners,ranking the company second in the world. The 2001 fiscal year also saw the workforce hit a new peak of1,650 employees, 1,170 of whom are consultants. Roland Bergerwas the only international strategy consultancy to expand itsworkforce last year, increasing staff numbers by 10 percent.Both the number of consultants and the total number of employeeshave doubled since 1995. Continued internationalization in 2001 The company's international offices experienced significantexpansion in the period 1999-2001. Growth of 29 percent put themwell ahead of the 20 percent growth posted by Roland Berger inGermany. The US business recorded the strongest growth, at 76percent, followed by Asia (+68 percent). Roland Berger's WesternEuropean offices (excluding Germany) saw business expand by 30percent in the same period. Roland Berger Strategy Consultants currently has 32 offices in22 countries. Our consultants come from a wide variety ofcountries, with 57 percent having a nationality other thanGerman. Projects with an international focus for clientsoperating internationally account for more than three-quarters(76 percent) of the total fee volume. Striking a balance between strategic consulting andoperational implementation In 2001, 51 percent of the total fee volume generated byRoland Berger Strategy Consultants was earned from developingstrategic concepts (19 percent of which were restructuringconcepts), and 49 percent came from operational implementationstrategies. Of those, operations in the narrower sense(logistics, purchasing, production optimization, and R&Dmanagement) contributed 25 percent. Innovative IT strategies,which are increasingly becoming a key competitive issue for ourclients, and also lay the foundation for process optimization,made up 12 percent. The remaining 12 percent came from marketingand sales consulting. In the current unstable economic situation, Roland Berger,like other market players, witnessed an increase in demand forconsulting projects whose purpose was, on the one hand, toadjust capacity and cut unit costs and, on the other hand, tosustainably increase the value of the client company. Oneparticularly notable trend has emerged of late: whilerestructuring projects were in the spotlight in late 2001 andearly 2002, attention is now increasingly shifting back towardimplementation-oriented growth strategies. "One reason for the gratifying results we achieved in 2001 isundoubtedly our clear focus on top management issues - issuesthat help our clients achieve sustainable value added," saysBurkhard Schwenker. "Excellently trained people, flexiblestructures, and a global network of Functional and IndustryCompetence Centers enable us to find tailor-made solutions toeven the most difficult problems. Our clients especially valuethe close, trusting collaboration we offer them while developingstrategies, and the hands-on support we provide duringimplementation - which we see as our duty. We want to make surethat what we recommend really works." The seven strategic priorities for outperformers: Howstrategically and operationally excellent companies can growtheir sales, profit, and company value at above-average rates When the economy is in poor shape, forward-looking corporatestrategies naturally have to apply selected, intelligent cost-cutting measures. However, a global study by Roland BergerStrategy Consultants found that it is also important to focus oncreative growth. Why? Because only strong corporate growth goeshand in hand with sustainable, above-average profit and valuegrowth. The study examined 1,700 companies worldwide. Of these,441 form the top tier, the "outperformers", who increased theirprofit and value at above-average rates. During the periodanalyzed (1996-2001), this group saw sales leap by an average of33.8 percent p.a., compared to the average of just 11.8 percentannual sales growth among the entire group of companiessurveyed. Pre-tax profits for the leading group rose by 37.3percent annually; the corresponding figure for the entire groupof 1,700 companies was a mere 8.5 percent. At 23.6 percent p.a.,the total shareholder return (the increase in stock price plusdividends) likewise easily outstripped the overall group averageof just 17.3 percent p.a. According to Roland Berger, the company's founder and Chairmanof the Executive Committee, "Seven strategic priorities - whichcan be mixed and matched depending on the industry and thecompetitive environment - are of critical importance to above-average growth in sales, profit, and company value." These sevenstrategic priorities are: * Innovation and branding * Forcing new rules on others * Globalization * A focused portfolio * Reducing vertical integration through outsourcing * Market presence and consolidation through M&As * Networks, partnerships, and virtualization One of the key findings of the study was that merely cuttingcosts can boost profit and company value in the short term only.It takes rule-breaking growth strategies to generate sustainableincreases in profit and value - even in times when the economyis weak. Knowledge is the future - Roland Berger invests heavily inglobal innovation and knowledge management In the fiscal year under review, Roland Berger sharply steppedup its investment in concept innovation, knowledge management,employee development, and efforts to promote the global exchangeof knowledge between the scientific community and practicalconsulting. Over EUR 90 million - or 18 percent of revenues -was invested in these areas in 2001. "This commitment is an investment in the future: our successhinges on developing our people, on increasing the skills andprofessionalism of our 1,200 or so international consultants. Atthe same time, we, as a global strategy consultancy, see it asour duty to make a significant contribution to the advancementof research and education," says Burkhard Schwenker. Endowed chairs in e-business and information technology at theINSEAD business school, for innovative IT business models at theTechnical University of Munich, and in new business startups atthe Brandenburg University of Technology in Cottbus are just oneaspect of Roland Berger's commitment to innovation, alongsidethe activities of the Academic Network, a collaborative venturewith 16 international chairs for business and technology. Thecompany also invests substantial sums in Ph.D. and MBA programsfor its employees at globally leading universities and businessschools, including such respected institutions as INSEAD, LBS(London Business School), Harvard, Wharton, the IMD (Institutefor Management Development in Switzerland) and the IESE (inSpain). The Roland Berger Foundation for Management Researchprimarily devotes itself primarily to developing innovativemanagement concepts.

ots Originaltext: Roland Berger Strategy Consultants ImInternet recherchierbar: http://www.presseportal.de

Please direct inquiries to: Ralph Driever Roland Berger Strategy Consultants Tel.: +49 (0) 89/9230-8318 Fax: +49 (0) 89/9230-8599 e-mail: ralph_driever@de.rolandberger.com Susanne Horstmann Roland Berger Strategy Consultants Tel.: +49 (0) 89/9230-8349 Fax: +49 (0) 89/9230-8599 e-mail: susanne_horstmann@de.rolandberger.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents. PROTEXT