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Pictured from left to right:Maciej Dobrowolski CEO

Michalina KaczmarczykDeputy President of the Supervisory Board

Tadeusz KaczmarczykPresident of the Supervisory Board

Pictured from left to right:Tomasz Lerek Export Director; Monika Piekarz Quality Assurance Officer; Krzysztof Paszczyński Manufacturing Director; Rafał Paluszczak Chief Accountant; Rafał Wiśniewski Logistics Director; Małgorzata Szenderska Deputy Domestic Sales Director; Konrad Zaremba Marketing and Domestic Sales Director; Paweł Soronowicz Head of IT Department; Anna Mikołajczak Deputy Marketing Director; Ewa Retkiewicz Deputy HR Director; Artur Kurtyka Technical Development Director; Krzysztof Jakubowski Deputy Manufacturing Director; Dorota Kołodziejczak Board Member, HR Director; Małgorzata Burek Board Member, Finance Director; Ewa Nowak Assistant to the Management Board; Marta Uciechowska-Sówka Export Manager

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A Brief Look Back at

How It All Started

“Most people already forgot how difficult it was in Poland in the 1970s. You faced a major risk if you wanted to achieve something. Looking back I know it was the right time and I guess the best moment to test yourself and start your own busi-ness,” recalls Tadeusz Kaczmarczyk, the founder of the company and President of Capricorn Sp. z    o.o. Supervisory Board.

At the beginning we produced whatever was actu-ally needed or the so-called small items useful in every home or office. In the 1980s, very turbulent times in Poland and in Europe, we tried to meet market needs so we produced whatever was de-manded. Since we had very competitive prices, our company was growing and we had the chance to gain experience. Years later it is clear it was price-less.

When I first started, we never had the opportuni-ties available today. Access to know-how was at the time very limited. An investor had to research market needs individually. And since we wanted to be the first and only ones producing something, we focused on manufacturing pipe clamps for heating and sanitary systems. We developed the first mold, bought the cheapest and used injection molding machine and a bag of material. I was per-sonally selling the first batch of clamps. I drove all night to deliver the items to our first customer. The idea was risky, required a lot of effort, trust and a huge loan. Nobody guaranteed orders.

Naturally, if it wasn’t for help and support from our family and some friends, we would not have achieved all that. Initially, we had a handful of people and small scale operations. Our products were not available in warehouses or DIY stores. I was personally work-ing on construction of our first molds and design of new products. I had direct contact with customers, so I would ask them how we could possibly im-prove our products. For many years we had a small manufacturing facility, but when the company started making money and became recognized, es-pecially in the eastern market where we managed to develop a solid brand, we relocated to our cur-rent headquarters in Świebodzice. It was winter, the turn of 1999 and 2000. That’s when the great change started and development of Capricorn was launched.

Capricorn TodayIt’s almost thirty years since the first idea of the company. Capricorn has several production facili-ties, modern equipment, technological lines and a Japanese-style management system and ap-proach to production. We have over 200 staff, yet it still seems we need more. Although we are one of the largest manufacturing plants in the region, we remain a family business where people mat-ter.

From the very beginning I had a vision of a modern pro-duction company. I remem-ber thinking that I wanted the name to fully reflect how stubborn and courageous we were to go for it. I am a Cap-ricorn myself – which has all these features – so we decided to name our company after this sign of the zodiac.

The Power of Capricorn

photo archives

Capricorn Sp. z o.o. HQ

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Mr. Maciej Dobrowolski, the CEO of Capricorn Sp. z o.o., answered our questions about what type of business we are and what it actually means to him.

“You might think I find it too personal, but to me this com-pany is a family achievement, which now I can continue to develop. I would say this is the greatest asset this organiza-tion has. The company has great potential – I am talking about people as well as technological capabilities which we continue to develop. We want to leverage on it, so each year we seek to complete more and more new investments. We would like to share it with you in the first issue of the Capricorn Magazine.”

Less than 5 years ago Mr. Maciej Dobrowolski was appointed the CEO of Capricorn Sp. z o.o. He has been linked to the company for years, profes-sionally and as a member of the family of the Company’s main shareholders.

At that time, as pointed out by Mr. Tadeusz Kacz-marczyk, the founder, the company faced the big-gest changes. New ideas and a fresh look at the capabilities of Capricorn very quickly resulted in a number of new investments made in almost every field. In the last few years the number of employees has nearly tripled. New warehousing and manufacturing premises were developed and fitted with state-of-the-art technological lines for production and assembly of Capricorn products.

We are consistent in terms of the company’s phi-losophy, style and management approach that have been continued from the very start. Today Capricorn is one of the largest and prosperous companies in the region. We have many employ-ees, yet still work in a family-like positive environ-ment. The underlying principle is tradition. Our customers appreciate loyalty and our strong posi-tion in the market, which in difficult times – with competitors coming and going – is really hard to find.

After Mr. Maciej Dobrowolski took over, the re-lationship between the company and staff was improving on a daily basis. It is proven by HR policy, social and medical care but primarily by positive relationships and mutual understanding atmosphere. As in any business, there are ups and downs. Yet the CEO likes to emphasize that from his very first day he felt compelled to establish, for the colleagues and subordinates, working condi-tions he himself would like to have in their place. He was determined to avoid the atmosphere of large corporations where busy people don’t even bother to talk to each other. Internal and external

interactions and relations do matter for him. Cus-tomers and suppliers are then able to trust us and the company may, in turn, head for sustainable de-velopment.

If you look at the promotional campaign and ac-tions, in virtually any industry, you will clearly see how many competitors are now striving for the same group of customers. What should be done to show what makes us different?

Capricorn has always focused on product quality and customer service quality – frequent meetings, ensuring warm relationship with customers, em-phasis on resolving any issues quickly and easily and quick contact. These have a huge impact on how the company is perceived by both current and future customers. Also, they build the image of a rock solid and reliable business partner both in relationships with customers, suppliers and re-cipients.

A Family Achievement

Injection unit, the manufacturing of plastic products

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Initially Capricorn focused primarily on the pro-duction of plastic products, in particular pipe clamps, sewer vents and air admittance valves.

In the 1990s the company was very rapidly growing domestically, but also on the eastern markets. By attending numerous exhibitions and fairs, we have reached a wide group of clients. Having focused on the production of plastic products, we could introduce some new components for sanitary and heating systems. Since then, Capricorn’s moves are strictly related to the heating and sanitary industry.

Last years witnessed many changes in the com-pany, both in product matters and production management. We are producing more and the output is increasingly technically advanced. We have introduced Japanese management style combined with, among others, 5S, KANBAN, SMED or Just-In-Time. The departure from the traditional management model towards the tried and tested methods from Japan had a positive effect on in-creasing the efficiency of technological processes in various departments.

Most of the proposed changes are always imple-mented. It proves how successful the project is and how committed the people are to the improve-ment process.

“Three years ago we introduced a project where employees may propose changes in specific areas within their responsibility. The number of proposals has quadru-pled.”

Krzysztof JakubowskiDeputy Manufacturing Director

Several years ago domestic clients accounted for most of the sales figures. Today we can safely say that the share of export production is compara-ble to the domestic one. However, if we analyze the growing demand for Capricorn’s products in the neighboring countries, the conclusion is that these proportions will change already in the com-ing years. This is clear not only in from the custom-er portfolio (mostly foreign), but primarily in the extensive network of technical advisors serving markets in over 40 countries worldwide.

Our focus on international cooperation reflects the specific nature of this industry. Some solutions have a long history in Western Europe, yet are not that popular in Poland.

“European markets, especially Western Europe, are ready for our products. They have been applying modern technologies for quite some time now, which explains why our products are highly appreciated, in particular abroad.”

Małgorzata BurekBoard Member, Finance Director

This is particularly true of heating technology; especially our advanced solutions for renewable energy sources.

“Heating components account for over 60% of our foreign sales. This explains the link and the increasing share of revenue from exports sales, as well as the focus on introducing green products in our offer.”

Tomasz Lerek, Export Director

Comfortable and

State-Of-The-Art Solutions

The year 2000 was a breakthrough for Capricorn. Relocation to new HQ in Świebodzice marked the beginning of new investments and the development. Over the last decade, we ceased to be a producer of components. Capricorn now offers complete heating and sani-tary systems. Today we are manufacturing more than 1,000 products.

“Our offer is expanding. We have between several and a dozen new projects each year. New designs and molds of products are developed in collaboration with renowned Polish technical and design institutions.”

Anna Mikołajczak, Deputy Marketing Director

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It is still common in Poland to associate major in-vestments and high maintenance costs with such solutions. That’s why Capricorn’s offer features a wide range of items. The company produces doz-ens of components for heating and sanitary sys-tems. Given the available sizes, specifications or types of packaging, the company offers a total of over 1,000 products.

Capricorn’s offer for underfloor heating systems includes stainless steel, brass and plastic mani-folds.

Production of manifolds involves the treatment of brass or stainless steel beams in CNC machine

tools. Most of the machines and equipment used to produce manifolds, but also other products, are numerically controlled (injection molding machines, press brakes, punch presses, CNC ma-chining units). Process lines for the production of insulation and edge insulation strips are designed and customized to meet our special requirements. Capricorn tries to limit outsourcing, though. Hav-ing invested in modern machinery, the Company could launch complete production on its own. The same applies to the production of molds for the manufacture of plastic products.

“We used to have a maintenance depart-ment that was replaced by Technical De-velopment Department, which consists of Tooling Department and Construction & Technology Department. They not only re-pair tools, machinery and manufacturing equipment, but are first of all involved in producing injection molds, instruments and other tools used in manufacturing and testing our products.”

Artur KurtykaTechnical Development Director

Given how specific the Capricorn industry is, a significant portion of its products has proprietary industrial design and utility registered, e.g. debris gully, non-return valves or sewage inlets. It is a kind of protection against unfair competition.

In the case of manufacturing our venting com-ponents – due to the complicated production process – the product itself, the modern injection mold and the manufacturing technology have been patented and reserved by the company.

As part of the project group we have established a team of marketing specialists, engineers and tech-nologists. Already at the stage of conceptual work they are working jointly to develop product design, mold design and the construction for control devic-es and systems to be used in subsequent product quality check. Preliminary patent research is made at that stage and a study of standards and technical approvals required for a given product.

All Capricorn products are manufactured accord-ing to European technical standards and are ISO 9001:2009-compliant.

In line with the valid Polish and European legal regulations, a company must seek technical ap-provals from the Building Research Institute (ITB) for construction products, where product stand-ards do not apply or whose properties relating to the basic requirements differ significantly from the properties specified in the standard. In the case of certification tests or compliance with the stand-ards – depending on the product – tests are con-ducted by the staff of the technical departments of the Wrocław University of Technology or accred-ited testing laboratories that provide specialized research of materials and building products.

Some tests and measurements, especially those allowing us to initially establish whether a product is made in accordance with the applicable stand-ard, are performed by the company’s research & measurement lab.

“Last year we bought new measuring devi-ces for our lab, for instance to check flow sensors, actuators and temperature con-trollers. Our in-house and well-prepared laboratory makes us independent of third-party service providers who sometimes lack resources to carry out a research until a specified deadline.”

Monika PiekarzQuality Assurance Officer

With extensive technical background and the in-house lab, the company may develop its product offer. State-of-the-art measurement and control systems also ensure our customers will receive safe products, which is equally important as the quality of our products. We also use the measuring and re-search equipment to test our prototypes. Changes are introduced on an ongoing basis and the im-provement process is much shorter than in the case of external testing.

Manufacturing manifold cabinets for surface heating

A high-performance manual 3D coordinate measuring instrument Mitutoyo Crysta-Plus M574

Process line for the manufac-turing of edge insulation strips

Beam of a brass manifold treated on a numerically controlled lathe

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“If we want to be leading the way, we must be ahead of the competition. Come up with something others have not been able to offer yet. Be one, or even more, steps ahead. But above all, we must offer products that really meet customers’ ex-pectations – fully.”

Konrad ZarembaMarketing and Domestic Sales Director

Capricorn’s lab also researches possible use of new materials for the manufacture of its prod-ucts. Given the growing popularity of green so-lutions for heating and sanitary technology, the company plans to gradually introduce more and more green products or products to work with re-newable energy-based equipment. To this end, a development plan is drafted for the coming years. It assumes, among others, that new technologies and devices will be implemented that will be us-ing renewable energy.

New machinery and equipment means special-ists must be hired to operate them. It is very difficult these days to find experienced staff on

the market. Those with expertise and skills are usually well paid and loyal to their employers. Graduates of technical schools often lack practi-cal knowledge. A vicious circle emerges in which companies are looking for experienced staff, yet do not want to accept students for practical learning. Several years ago Capricorn introduced a training sessions for new hires. It is called a ‘trial period’ and the candidates learn how to operate and maintain machinery and equipment, methods of preparation and the entire production cycle. It takes several weeks, if not months, before the employee is able to perform work without super-vision.

Given the effects we have so far, such a training pattern is beneficial for both parties. Employees can gain experience while the company has a per-son fully prepared to work independently. Train-ing is necessary if we are talking about modern machines. If a company wants to actually make use of the purchased equipment, it must also in-vest in skilled operators. Naturally, trained work-ers are sometimes leaving the company. This risk is, however, inherent to the entire system of train-ings and career paths.

“Capricorn ensures training and provides knowledge to administrative and produc-tion staff. We have a simple rule for that: if we see that someone wants to excel and has the ambition, but lacks knowledge or knows that it will facilitate the tasks, he or she can count on the support and funding by the company. We always try to make de-cisions on a case-by-case basis and for the benefit of both parties.”

Dorota KołodziejczakBoard Member, HR Director

Our efforts to develop skills and gain knowledge are much appreciated and strongly supported by the staff. To many people, having growth and learning opportunities is, next to salary, one of the most frequently indicated motivators to work.

“It’s plain to see that Capricorn looks bey-ond new technologies and machines. They want to invest in the staff as well. When I had joined Capricorn I was immediately involved in a new project related to buy-ing modern bending brakes and operating them. I was a part of it from the start and today I am introducing people to it. This approach motivates me and it gets even better if I work with cool guys who feel the team spirit, know what they want and help each other. This is how I can tell a job is satisfactory.”

Rafał ZięcinaLeader in Punching and Press Department

On top of trainings, Capricorn employees also get medical healthcare services. The company has es-tablished a surgery to provide emergency medical care, advice, examinations or routine vaccinations.

Bending brake used for manufacturing metal products (e.g. cabinets for surface heating manifolds)

Injection Molding Machines Department; the manufacturing of plastic components

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“The end of 2011 marked the completion of a new warehouse with an area of over 1,200 sq.m. We currently have two large ware-houses and our previous storage premises, where products waited for shipment, are now used for the storage of raw materials. Ultimately, we want to introduce a modern system to identify goods in the warehouses. We will then be able to further shorten our delivery time.”

Rafał WiśniewskiLogistics Director

It is the focus on people that makes Capricorn dif-ferent.

Family business is successful when faced with in-novative management because of the ability to focus on the staff. Starting with the founders and creators, the CEO referred to as “the engine pull-ing the team towards change, development and innovation,” and the staff - a team of people who, having trust and competences, are complement-ing each other; regular workers and specialists, whose role is often underestimated in companies even though much depends on their work and commitment. In times of dynamic changes in the economy, losing good employees generates ad-ditional problems. It is hard to feel secure when everyone around you lays people off, cuts costs, reduces positions in search of savings. Capricorn tries to avoid such solutions at all cost. Many peo-ple working here will say that the greatest value is the stability thanks to which people have the sense of security. This considerably improves the comfort of their work.

The last four years brought the biggest changes ever for Capricorn. The company has tripled the number of staff and bought several new ma-chines and process lines to manufacture its prod-ucts.

Changes that took place across the company over the years, and its current situation, might tell you a lot about the company’s approach to development.

New investments are carried out simultaneously or follow one after the other so as to ensure a steady and sustainable growth. The future of the company depends primarily on the customers; therefore, the primary objective for the coming years is constant self-improvement, improvement of the offer and distribution channels.

Still this year, Capricorn is planning to introduce new improved products which will certainly be revealed in the next issue of Capricorn Magazine.

CM

Bending brakes

New warehouse

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A Look on How Our

Non-Return Valves Are Manufactured

Most of the machines and equipment used to produce manifolds, but also other products,

are numerically controlled (injection molding machines, press brakes, punch presses, CNC machining units). Process lines for the production of insulation and edge insulation strips are designed and customized to meet our requirements.

Capricorn tries to limit outsourcing, though. Having invested in modern machinery, the Company could launch complete production on its own.

Krzysztof PaszczyńskiManufacturing Director ”

Stepby Step Product concept development and preparation of

necessary production tools

Design and production of molds – treatment of steel blocks using numerically-controlled CNC

Quality control using a high-performance manual 3D coordinate measuring instrument – review for compliance (measurements and tolerance) with the PN-EN 13564 standard for non-return valves

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2

Non-return valves manufactured using injection mol-ding for plastic products3

Products are assembled4

5 A Two-Flap Non-Return Valve

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FebruaryWe completed the final stage of development and upgrade of the production department for metal treatment where, among others, stainless steel products are made. After sev-eral months of preparations and testing (May 2011), we have launched serial production of, e.g. cabinets for surface heating mani-

folds using an Amada turret press and numerically-controlled press brakes with pressure of up to 80 tons.

We bought two modern and universal production lines for edge insulation strips and thermal insulation used in surface heating. New lines have been designed and customized to meet our re-quirements. This way we could expand the range of components for surface heating systems with several new types of edge insulation strips and thermal insulation.

MarchWe attended the ISH International Fair in Frankfurt, one of the biggest events for the installation industry. We presented our latest products and innovative solutions for heat-ing and sanitary systems.

Also in March we bought new equipment, lathes and numerically-con-trolled milling machines for the treatment of brass beams used in the manufacturing of underfloor heating manifolds.

AprilWe introduced a new and improved debris gully Q3 in response to our customers’ demands. Improved structure – that we have additionally re-inforced with fins – has boosted the performance of this product.

JuneWe have been developing our offer for the components for sanitary systems and introduced a new range of shower sewage inlets – Aqua Ambient. The new inlets have modern design of grates - made of stainless steel with perfectly flat and smooth surface. We used state-of-the-art manufacturing technology to ensure top quality and even more effective drainage.

Highlights2011

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JulyLast year we bought a high-performance manual 3D coordinate

measuring instrument for our in-house lab – Mitutoyo Crysta-Plus M574. The new research device is used both in the

production of new injection molds and production tools as well as to carry out measurement and control of our final products.

September Our DuoProtect one-flap and

two-flap non-return valves re-ceived the European Medal, awarded by

the European Economic and Social Committee, the Ministry of Foreign Affairs and the Business Center

Club. This confirms the highest quality of our prod-ucts and that they meet all requirements – of Polish and European customers.

OctoberFor the third time we have been awarded Forbes Diamonds as one of the Polish busi-nesses reporting the fastest growth in value over the last three years of operations. This year’s Diamond reflects the excellent con-dition and dynamic changes in Capricorn.

December We completed our new warehouse with an area of over 1,200 sq.m. The new investment brought additional warehousing and manufacturing

space ready to be fitted with a state-of-the-art system for the identification of goods.

Our actions and management have been appreciated as we were awarded the title of a Business Fair Play. This confirms

that we are a reliable business aware of the needs of local com-munities. It shows our operations are ethical and that we act responsibly in relation to our customers, vendors and staff.

Highlights2011

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PRODUCER OF COMPONENTS FOR HEATINg AND SANITARY SYSTEMS

Capricorn Sp. z o.o. Ciernie 11, 58-160 Świebodzice, Polandtel.: +48 74 854 05 16, fax: +48 74 854 05 83, e-mail: sekretariat@capricorn.pl