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COMPANY PROFILE 2007

Perfil Ingles

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COMPANY PROFILE

2007

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Elgoibar is located in the Basque Country, the pioneering region for the emergence, development andcommercialisation of the Spanish machine tool industry and follows the “industrial revolution” of the 19thcentury where there is historical evidence of workshops specialising in the construction and repair ofmachinery.

The DANOBAT Group has always been able to adapt itself to the different circumstances and demands ofeach era in this industrial tradition, thus has become one of Europe's leading companies.

A large Group

1954DANOBAT is set up.

1962SORALUCE is set up.

1980The DANOBAT Group is founded.

1986Creation of IDEKO, a Technology Centrespecialising in Machine Tools.

1992Constitution of the MONDRAGON CorporaciónCooperativa (MCC); the DANOBAT Groupbecame a member.

1992Constitution of BIMATEC-SORALUCE in Germany.

1992Constitution of DANOBAT-Beijing in China.

1993-1997Creation of Commercial Delegations in Germany,France, Italy, Brazil and Japan.

2002Acquisition of the OVERBECK Company inGermany.

2003Acquisition of the NEWALL Company in UK.

2004Creation of GOIMEK, high precision machiningspecialised company.

2005Creation of DANO-RAIL for the construction ofequipment for railway maintenance.

2005IDEKO launches HI-MACH High PerformanceResearch project.

2006Acquisition of the Company EUROFIBER:equipment for manufacturing parts incomposite.

Highlights

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The products manufactured by the DANOBAT Group are classified in the following technologies:

MILLING MACHINES & MILLING CENTRESBed typeFloor type moving columnMoving column over bedHigh speed

TURNING MACHINESHorizontalVertical

GRINDING MACHINESExternal cylindricalInternal cylindricalSpecials for aeronautics & power generation industriesCreep feedDouble column & specialsVerticalCentreless

SHEET METAL WORKING MACHINESPunchingFlexible systemsPunching with shearingBendingPunching with laser cutting

CUTTING & DRILLING UNITS Straight cutting bandsaws Angular cutting bandsaws Vertical cutting bandsaws

PLASMA CUTTING SYSTEMS

SOLUTIONS FOR RAILROAD MAINTENANCEControl & reprofiling centersShunting carsGeometry measuring equipmentDefects detection equipmentAutomatic lines for changing bogiesSoft for tread's management & characterization of parameters

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Its company structure is made up of three main groups: Financial,Industrial and Distribution, each of which operates independently, butwith a common strategy.

The Financial Group embodies the banking activities of Caja Laboral,as well as those of Lagun-Aro, a Social Welfare entity providing bene-fits to the cooperatives belonging to the Corporation.

The Distribution Group works headed by Eroski.

The Industrial Group incorporates the activities of the industrial mem-ber companies of the Corporation, grouped according to their sectorin the following divisions: Automotive, Goikide, Components,Construction & Vertical Transport, Equipment, Household, Engineering& services, Machine tools, Industrial systems and Tooling & systems.

Some of the most outstanding results up to December 31, 2006 are:

The DANOBAT Group forms part of MCC,

MONDRAGON Corporación Cooperativa

TOTAL ASSETS 28.100 Millions of €

INDUSTRIAL GROUP SALES 6.717 Millions of €

INDUSTRIAL GROUP'S INTERNATIONAL SALES 3.820 Millions of €

WORKFORCE 82.830 people

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RAFAEL BARRENECHEAVice-president of MCC and General Manager of the DANOBAT Group

IÑIGO UCINManaging Director DANOBAT

VICENTE MUJIKAManaging Director DANOBAT-SISTEMAS

VALERIO IÑIGUEZManaging Director DANO-RAIL

MANUEL AGUIRREManaging Director ESTARTA

AITOR ALKORTAManaging Director GOIMEK

Board of Directors

JOSE LUIS JUARISTIManaging Director GOITI

RAMON URIBE-ETXEBERRIAManaging Director IDEKO

JOSÉ MANUEL SEGUÉSManaging Director LEALDE

RAFAEL IDIGORASManaging Director SORALUCE

ANTXON LÓPEZ USOZInnovation & Promotion Director DANOBAT Group

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The products of the DANOBAT Group are aimed to the following sectors:

Capital Goods 30%

General machining workshops 21%

Others 13%

Automotive 12%

Oil industries 8%

Aeronautics 8%

Railway Industry 5%

Stamps and dies 2%

Retrofitting 1%

The Danobat Group's main markets are as follows:

EU 42%

Domestic market 27%

Asia 14%

America 8%

Others 9%

International Sales:

Germany 22%

China 15%

Italy 8%

Eastern European countries 8%

Czech Republic 6%

Turkey 6%

France 5%

UK 5%

Brazil 5%

USA 4%

Mexico 2%

Belgium 2%

India 2%

Portugal 2%

Argentina 2%

Others 6%

Market

30%

21%13%

12%

8%

8%

5%

2% 1%

42%

27%

14%

8%

9%

22%

15%

8%8%6%

6%5%

5%

4%

5%

6%2%

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BalanceThe balance sheet as of 31.12.06 of the DANOBAT Group provides the following information:

ASSETS (Thousands of €)

Net fixed assets 61.799

Stocks 32.735

Liquid assets 60.208

Disposable 22.097

TOTAL 176.839

TurnoverThe turnover of the DANOBAT Group in 2006 reached 192.8 million euros, 27% ofwhich came from the domestic market and 73% from foreign markets.

Main Figures* including subsidiaries.

Foreign markets 73%

Domestic market 27%

TURNOVER(millions of €)

CASH FLOW (millions of €)WORKFORCE

INTERNATIONALSALES (millions of €)

DEBTS (Thousands of €)

Own resources 80.170

Long term debts 24.578

Short term debts 72.091

TOTAL 176.839

Financial Details

0

120

130

140

150

160

170

180

190

2004 2005 2006

137140

200

192,80

0

70

80

90

100

110

120

130

140

2004 2005 2006

108104

150

142,3

0

400

500

600

700

800

900

1.000

1.100

2004 2005 2006

1.0071.039

1.200

1.036

01234568

2004 2005 2006

5,1 4,7

910

19,3

11121314151617181920

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To contribute to the satisfaction of customer needs.

To position the Group among the European Machine Tool sectorleaders.

To provide the market with hi-tech machinery and turnkey solutions,and collaborating with clients in developing their competitiveness.

To actively contribute to the technical, professional and human deve-lopment of our worker-members.

To achieve the integrated participation of all the organisation's mem-bers in the business management.

Strategic Objectives

QualityThe DANOBAT Group has been awarded with the following quality certifications:

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The DANOBAT Group has its own Technological Research and DevelopmentCentre, IDEKO. This is where it carries out the specialised innovation and creationof state-of -the-art machine-tool products. Its main objective is to supply to thecompanies within the Group innovating technological solutions. DANOBATGroup's constant technological development is an essential factor for achievingcompetitiveness on the world market.

IDEKO's main strength is its team of workers, consisting of 87 highly qualifiedemployees with proven experience in the sector and who are skilled in thegrasping, assimilating and developing of new technological solutions aimed atthe continuous adaptation of products and improved processes.

Its areas of development are: Product Engineering, Mechanical Engineering andControl Engineering.

In depth research and development of the Danobat Group has made it possibleto have 37 international patents.

Technology

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DANOBAT Group's commercial branch offices

The DANOBAT Group relies on a network of branch offices located in the main markets, complemented by agents anddealers in countries which are the main machine tool consumers. The following list has been updated to 31st December 2006.

GERMANYBimatec-SoraluceDirector: F. Bigswa / A. LindnerTel.: +49 643.19.78.20Fax: +49 643.17.11.02E-mail: [email protected]

Overbeck GmbhDirector: P. RodríguezTel.: +49 27 72.80.10Fax: +49 27 72.80.11.53E-mail: [email protected]

FRANCESoraluce S.a.r.lDirector: F. ArizagaTel.: +33 1.60.05.02.06Fax: +33 1.60.06.56.47E-mail: [email protected]

ITALYSoraluce Italia S.R.L.Director: G. AlducciTel.: +39 0429.60.43.55Fax: +39 0429.61.54.97E-mail: [email protected]

UKNewall UK Ltd.Director: H. ChanaTel.: +44 1733-26.55.66Fax: +44 1733.84.38.19E-mail: [email protected]

USADanobat Machine Tool. Co.Director: M. OchotecoTel.: +1 84.75.93.66.44Fax: +1 84.75.93.66.48E-mail: [email protected]

BRAZILDanobat do Brasil Ltda.Director: F. MattosoTel.: +55 113.082.90.80Fax: +55 113.082.90.80E-mail: [email protected]

CHINADanobat Beijing Representative Office Director: T. HouTel.: +86 10 64.64.36.81Fax: +86 10 64.64.36.80E-mail: [email protected]

JAPANMCC Japan OfficeDirector: Y. TsujiaiTel.: +81 352.82.44.01Fax: +81 352.82.44.02E-mail: [email protected]

Commercial network and participated companies

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AUTOMOTIVECITROËNBMWBOSCHDAIMLER CHRYSLERDELPHIDENSODONGFENGFAWFIATFORDGENERAL MOTORSGETRAGGKNIRAN KHODROLAND-ROVERMAHLEMERCEDES BENZMTUNISSANOPELPERODUAPROTONPSA GROUPRENAULTROVERSAABSKODASSANG-YONGSUZUKITENNECOTRWVOLKSWAGENVOLVOZF

STAMPS & DIESCITROËNKARMANNKETER PLASTICMIELETRÖSTERVOLVOZIMMERMANN

OIL INDUSTRIESAMPO POYANCOOPER CAMERONGAZPROMTRUBGRUPO TENARISKORVETPHOENIX ARMATUREN

VENDING / LIGHTING / OTHERSAZKOYENA.E.G.BARALDIEFACECEMBRACOENUSAISTOBALIZARKEPLER WEBERMECALUXNUCLEAR FUELODELUXRALLRECREATIVOS FRANCOREPAGASROPERSOTUBO

RAILROADABB HENSCHELALSTOMBOMBARDIERCAFCHINA NORTHERN RAILWAYSCHINA SOUTHERN RAILWAYSDWAGEC ALSTHOMINDIAN RAILWAYSJINXI AXLEKÜNSTLERLUCHINNIMETRO MADRIDMINISTRY OF RAILWAY CHINARENFESÄCHSISCHE ANLAGENSIEMENSSUBURBANO MEXICO DFVON ROLLWAGGONBAU DESSAUWAGGONBAU GÖRLITZ

INDUSTRIAL VEHICLESCATERPILLAR DANA EATONIVECOJOHN DEEREMAN RENAULT VEHICULOS INDUSTRIALESSCANIASISAMEXCETOR

COMPONENTSANSA LEMFORDERAUTOMODULOSCLARKCOMESADANADELPHIEATONFAGOR EDERLANFIT-CONTINENTALGAMESAGKNINAIRAN KHODROKRUPPLUCASMAGNETI MERELLIMAHLEMAPSAMEHVARSAZANMENESMAN SACHSMICHELINRONALSAMOTSHANGHAI-GEARSSISAMEXATS/S&MTENNECOTEVESTIGERTRWVOITHZF

INDUSTRIAL REFRIGERATIONARNEGELECTROLUXFAGOFRIITVJOSE JULIO IORDAOKOXKATECUMSENUNIDAD HERMÉTICA

DANOBAT Group References

AEROSPACE AND POWER GENERATIONAIA FRANCEAIRBUSAIR FRANCE INDUSTRIESALFA-ROMEOALITALIAAMERICAN AIRLINESBMWBOEING HELICOPTERSBRITISH AIRWAYSCASACANADIAN AIRLINESDELTAEUROCOPTERGAMESA EÓLICAGE AIRCRAFT ENGINESGE POWER SYSTEMSGERMAN AIR FORCEHISPANO SUIZAIBERIAIHI JapónIPTN-IndonesiaJAL JapónKNAAPOLA RAPIDALZTL-RUSSIAMESSIER BUGATTIOGMA-PORTUGALPIAGGIO AERO INDUSTRIESPRAT & WHITNEYROLLS ROYCESABENASAESL-SINGAPORESALUTSF EMMEN SWISSAIRSIEMENSSIKORSKYSNECMASR TECHNICSSWISS FEDERATHAI AIRWAYSUNITED AIRLINESVARIG

FOUNDERSFAGOR EDERLANFAGOR LUZURIAGAMONTUPETSIFATEKSID

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GRUPO DANOBATArriaga Kalea, 2P.O. Box: 33Te.l: +34 943 74 83 00Fax: +34 943 74 36 74E-20870 ELGOIBAR (Gipuzkoa)E-mail: [email protected]

BIMATEC-SORALUCEIn den Fritzenstücker 13-15Tel.: +49 6431 97820Fax: +49 6431 71102D-65549 LIMBURGE-mail: [email protected]

DANOBATArriaga Kalea, 21P.O. Box: 28Tel.: +34 943 74 80 44Fax: +34 943 74 31 38E-20870 ELGOIBAR (Gipuzkoa)E-mail: [email protected]

DANOBAT SISTEMASBº Arzabal s/nP.O. Box: 30Tel.: +34 943 25 49 00Fax: +34 943 25 49 01E-20820 DEBA (Gipuzkoa)E-mail: [email protected]

DANORAILBº Arzabal s/nP.O. Box: 30Tel.: +34 943 25 49 00Fax: +34 943 25 49 01E-20820 DEBA (Gipuzkoa)E-mail: [email protected]

ESTARTA RECTIFICADORASIGMA IndustrialdeaXixilion Kalea, 2 Pab. 10P.O. Box: 17Tel.: +34 943 74 37 05Fax: +34 943 74 17 58E-20870 ELGOIBAR (Gipuzkoa)E-mail: [email protected]

GOIMEKItziarko Industrialdea, 2. PartzelaP.O. Box: 5Tel.: +34 943 60 63 15Fax: +34 943 25 44 05E-20829 ITZIAR-DEBA (Gipuzkoa)E-mail: [email protected]

GOITIApraiz kalea,1P.O. Box: 80Tel.: +34 943 74 80 23Fax: +34 943 74 81 44E-20870 ELGOIBAR (Gipuzkoa)E-mail: [email protected]

IDEKO Centro TecnológicoArriaga Kalea, 2P.O. Box: 80Tel.: +34 943 74 80 00Fax: +34 943 74 38 04E-20870 ELGOIBAR (Gipuzkoa)E-mail: [email protected]

LEALDEBº Kortazar, s/nP.O. Box: 11Tel.: +34 94 684 40 04Fax: +34 94 684 41 30E-48288 ISPASTER (Bizkaia)E-mail: [email protected]

NEWALL UK LTD.Unit 1 Sturrock WayBrettonTel.: +44 (0) 1733 265566Fax: +44 (0) 1733 843819PETERBOROUGH / PE3 8YJE-mail: [email protected]

OVERBECK GMBHOverbeck GewerbeparkKonrad Adenauer Strasse 27Tel.: +49 2772 801-0Fax: +49 2772 801153D-35745 HERBORNE-mail: [email protected]

SORALUCEBº OsintxuP.O. Box: 90Tel.: +34 943 76 90 76Fax: +34 943 76 51 28E-20570 BERGARA (Gipuzkoa)E-mail: [email protected]

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