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Management Report

125 Consolidated
Financial Statements

193 Further
Information

36 Corporate Governance Report
41 Information and Notes relating to Takeover Law
45 Remuneration Report

Combined
Non-financial Report
The Combined Non-financial Report is part of the Combined Management Report.

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Combined Non-financial Report

Separate Combined Non-financial Report in accordance with
the CSR Directive Implementation Act
Our Take on Sustainability

Jenoptik sees its entrepreneurial activity as more than purely therealization of commercial objectives; it is also an obligation tosociety and the environment. Together with our customers, wecreate forward-looking trends in the fields of energy efficiency,
healthcare, environment, mobility, and safety. As an international technology company, innovation is our driving force andthe basis of our success in business. Our innovative products
allow us to make significant contributions to the societal challenges we face and facilitate both the conservation and efficient use of resources.

Our understanding of sustainability is based on the convictionthat the best way to achieve our economic goals and lastingly
profitable growth is to adopt a position of responsibility to theenvironment and society. To satisfy this demand, the issue ofsustainability at Jenoptik is the responsibility of the President& CEO. An active Sustainability Working Group, consisting of
the heads of the Finance, Investor Relations, Communication& Marketing, HR, Environmental Management and Compliance & Risk Management departments, regularly reports to the
Executive Board and the Supervisory Board on relevant issues.

The Jenoptik Group operates in three segments, Optics & Life
Science, Mobility and Defense & Civil Systems, and the majorityof its services are provided for the photonics market. With our
high-quality capital goods – from standard components tomodules to complex solutions – we are primarily partners toindustrial companies and public sector clients.

In this report we inform about key sustainability issues that help
to better understand our business performance and the com­pany’s development in the future. The separate Combined
Non-financial Report published here serves the purpose of fulfilling the requirements of the CSR Directive Implementation Act(CSR-RL  U G) in accordance with § 315b, § 315c in conjunction

G07 Materiality Matrix
6.00

5.5

Relevance for Jenoptik’s business

More information on
the business modeland markets can befound on page 68 ff.
of this Annual
ReportPosition and Business Model

MediumpriorityTop
priority

Lowestpriority

Mediumpriority

Corporate cultureS ecuring substantial
growthInternational
distribution network

HR development

EmployerbrandingInnovation
process

Respect for
No tollerance for corrupt behaviour
human rights
Reputation
BrandCompliance with all applicable laws,
image
standards and guidelines
Patent development  /  IP management
Responsible business relations built on integrity

Customer management
Management capabilities
Quality management

5.0

4.5
3.5

4.0

4.5

Relevance for external stakeholders

54

5.0

5.5

6.0

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Report65 C
 ombined
Management Reportwith § 289c to 289e of the German Commercial Code (HGB) andcovers the key topics in the fields of employees, environmental
and social matters, human rights, and anti-corruption, in the 2017
fiscal year, for both external audiences and from the company
perspective. The description of the approaches set out here isbased on Standard 103 of the Global Reporting Initiative (GRI) ;key figures were produced on the basis of the GRI standards
and both the materiality analysis and risk assessment in accordance with the requirements of CSR-RL  UG. In accordance with§ 315b (1) (3) of the German Commercial Code, reference is
occasionally made to other information available in the GroupManagement Report. The list below shows all the relevant
passages in the Management Report that are relevant to theseparate Combined Non-financial Report.

Materiality Analysis
Jenoptik maintains ongoing dialog with all stakeholders. In order
to identify the key non-financial factors influencing sustainablebusiness development within the Group, ten currently relevant
topic clusters with a total of 54 issues were defined in the Sustainability Working Group. The topic clusters reflect the aspects
required under the German Commercial Code (employee, environmental and social matters, respect for human rights, anticorruption and anti-bribery) and also include those aspects that

193 Further
Information

are specific to Jenoptik (business model, management, internationalization, innovation, customer and market penetration,
operating excellence, brand, and reputation). The 2017 materiality analysis involved an independent assessment of the 54
issues by the Executive Management Board, departmental
heads and employees – both from Jenoptik’s perspective and theperspective of target groups (customers, business partners,
employees, shareholders, suppliers, and the general public). Boththe internal assessment from Jenoptik’s perspective and ourassumptions regarding the issues’ significance to target groups
were used representatively to assess the impacts on the aforementioned sustainability issues. They were subjected to an
overall assessment, the findings of which were summarized in amateriality matrix. Topics in the upper right quadrant areof major significance to the Group’s business development fromthe perspective of both Jenoptik and its stakeholders. G07
The following overview shows all the topics defined as “key” toJenoptik in the materiality analysis. They reveal where Jenoptik
sees its priorities in the value-added chain. In addition, we
report on environmental matters and our corporate citizenshipon a voluntary basis. T07
Our corporate culture, the development of our employees, aswell as our brand and reputation have top priority. Securing
substantial growth by promoting good underlying conditions
for greater innovation and ensuring increases in capital expenditure for research and development are the decisive factors
influencing our future performance. Innovation and IP management are thus indispensable to a technology company such as
Jenoptik. Our future success depends crucially on a deep
understanding of customer and market requirements as well as
on an efficient international distribution network.

T07  Jenoptik's Key Topics
Employee Matters

Environmental Matters

Social Commitment

Human Rights

Anti-Corruption

Other Topics

Corporate culture
HR development

Environmental
management

Commitment toscience & education,
art & culture as wellas in social projects

Respect forhuman rights

No tolerance forcorrupt behaviour

Brand & reputation
Quality management

Responsible business
relations built on
integrity

Innovation & patentdevelopment

Waste management
Processes to ensurecompliance withregulations

Compliance with allapplicable laws, standards and guidelines

Resource
management
Jenoptik's key topics

Topics reported on a voluntary basis

55

Corporate strategy

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Combined Non-financial Report• Business model: page 68• Strategy: page 70 ff.
• R+D / Innovation management: page 76 ff.
• Risks & opportunities: page 108 ff.
•	Diversity policy see Corporate Governance Statement,www.jenoptik.com / investors / corporate governance

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J E N O P T I K Annual Report 2017
Combined Non-financial Report

See R+D chapter
from page 76 on

Detailed informationon our risk management system andmajor risks, including
in connection with
non-financial factors,
can be found frompage 108 on and on
our website
www.jenoptik.com /About-Jenoptik /Responsibility /Compliance

See the Targets andStrategies chapter
on page 70 ff. andthe Corporate
GovernanceStatement for more
information

See page 36 ff.
of the Corporate
Governance Reportand in the Corporate
GovernanceStatement

We are also committed to law-abiding and compliant conduct
while respecting human rights as well as to ensuring aboveaverage quality of our products and services. As a responsible
and socially committed company, Jenoptik considers it its duty
to play an active role in shaping its environment. Dedication to
our region is therefore another high priority. Our obligations
to the environment are also close to our hearts, and environmental issues are of key concern to us in all our businessdecisions.
The key topics are reflected in the new corporate strategy andOur mateare value drivers in our various areas of business.
riality matrix thus sets out the basis of all our long-term activities. These key topics are explained in detail in the sections
below.

Risks in Connection with Non-financial
Aspects
Acting in conformity with rules and considering business risks andopportunities – for Jenoptik, these are the principles of responsible corporate governance. The Group maintains a risk manual and a system of guidelines that document all relevant processes throughout the Group and represent a reliable reference
framework for all employees. Twice a year, the Compliance& Risk Management department identifies all risks within theGroup and discusses the top issues – set in net terms – with the
Executive Board. Our risk assessment systems takes accountof both financial and all relevant non-financial factors, such as
occupational health and safety, environmental protection, compliance, marketing and sales, HR and quality management. The
net analysis did not identify any risks that are very likely tohave a serious negative impact on the specified key non-financial factors now or in the future.

Employee Matters
Our employees, with their knowledge and abilities, are our greatest asset and absolutely essential to the Jenoptik Group’s business success. By supporting, accompanying, and promoting theemployees in their particular areas of expertise, we are able
to ensure the quality of our products and processes, our innovative potential and thus also our ability to create value in thelong term. Structured HR work and a responsible approach toworking conditions are key aspects of our employment policies,
as consistently excellent business performance is only possible
with happy and dedicated employees.
HR work at Jenoptik covers all employee-related measures torealize the Group’s objectives and is thus an essential component of the overall leadership and management process. HR
is an internal business partner, and comprises a strategic areaand several operating areas. It reports directly to the Chairmanof the Executive Board, who is also HR Director. HR officers are
the points of contact for employees and managers within
the Group. Group-wide guidelines and an authorization matrix
govern all relevant processes, workflows, and rights of employees internally and to outside parties.

Alongside an appealing corporate culture, we see our employees’
efforts, expertise, experience, and commitment to the company as key values. In the future, HR will concentrate its focus on
the issues of corporate culture, HR development, and employee
satisfaction.
Detailed information on gender equality and targets for the proportion of women on the Executive Board and the two management levels below the Executive Board can be found in the
Corporate Governance Report and in the Corporate Governance Statement.
A pleasant corporate culture provides guidance to employees, aswell as to customers, suppliers, and potential applicants. The
implementation of the new group strategy published in February
2018 involves changes to a number of specific aspects within

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A further measure serving to create an appealing corporate culture is a good work / life balance. Jenoptik is family-friendly
and responds to the needs of its employees with flexible working hour models. Flexitime, part-time work, and flexible
parental leave all make it easier for our employees to strike theirown balance between family and working life. In 2017, 156
employees (prior year: 167 employees) took parental leave, 6.6
percent less than in the prior year. The number of part-time
contracts rose by around 35 percent in the last five years. 7.4
percent of employees worked part-time in 2017. To further
improve the work / life balance, we are presently developing
an integrated approach to mobile working, which is due to berolled out to the first German locations in mid-2018. One of themost important preconditions for balancing career and familyis the availability of childcare. For several years, Jenoptik has
been investing in daycare centers at the Jena, Wedel, and Monheim locations, as well as in flexible childcare models. Thismeans that our employees are assured a place at the daycare
centers. The low staff fluctuation rate of 3.0 percent for theoverall Group (prior year 4.2 percent) itself reflects a high levelof employee satisfaction with Jenoptik.

193 Further
Information

Occupational health and safety are also key topics affecting thebasic needs of our employees and their satisfaction in theworkplace. They are firmly anchored in the Group’s operatingprocesses and aim to minimize risks arising in the work environment that may endanger employees. The Jenoptik companies are each responsible for applying the law on all aspects ofoccupational health and safety. The central Safety, Occupational and Environmental Protection (SEH) department reports
directly to the Chairman of the Exe­cutive Board and is available
to advise all the group companies. It coordinates the relevanttasks and assists the Executive Board on enforcing necessary
measures. There are occupational health and safety committee
meetings at all Jenoptik companies each quarter. In addition,
all employees are briefed on issues relating to occupational
health and safety at work at least once a year. At all of the German loca­tions, around ten percent of the workforce are trained
as first-aiders. In 2017, we managed to reduce the number ofworkplace accidents in Germany to 10.73 per 1,000 employees(prior year 10.86 per 1,000 employees). Compared to the members of the ETEM trade association, Jenoptik is thus well below
the average figure of 18.2 in 2016. In the interests of ouremployees’ health and performance, the Group offers regular
medical examinations by a company physician, and in 2017
launched a health day for the employees of the Optics & Life
Science segment in Triptis.
HR development is a key factor that determines the future

viability of our company. To help promote employees in line with
their potential and interests, and thus maintain their lasting
motivation, Jenoptik will be focusing on this issue in 2018. The
development needs of every single employee are assessed inregular appraisals and appropriate training is selected. In 2017,
Jenoptik invested around 2.0 million euros in its employees’
professional development. Over the year covered by the report,
this benefited 1,755 employees (prior year 1,832 employees).

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the company. At their heart is the establishment of a dialogbased corporate culture based on trust, respect for diversity,and equal opportunities. Jenoptik’s leadership culture is set tobecome even more modern and flexible. We primarily aim toachieve this by promoting respectful behavior in the workplace,flexible working hours, and a healthy work environment. Using
regular surveys once every two years, we will gauge our
employees’ satisfaction with the various aspects of their work
and with the corporate and leadership culture, with the intention of identifying specific objectives and actions. On thebasis of the surveys on the topics of work organization, working conditions and cooperation, information and communication, leadership and Jenoptik as an employer conducted in Germany in 2012 and 2014, an online survey of all employees,with a revised focus, will be carried out in the 2018 fiscal year.
The findings will be used to define implementation projects
with specific actions, which can then be evaluated in the year
2020 and reviewed for their effectiveness.

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J E N O P T I K Annual Report 2017
Combined Non-financial ReportMore informationin the Employees
chapter frompage 81 on

At the same time, our managers are key drivers of our corporate
success and are of particular importance to our HR development activities. They are responsible for motivating their employees and have a direct influence on their satisfaction. Jenoptik’s
leadership program provides training in areas such as leadershipand change management, helping to ensure a standardized
understanding of management and the use of uniform management tools. The Jenoptik Junior Leadership Program (J²LP)
enables the targeted development and promotion of potential
leaders within the Group. In addition to preparing management
trainees for their future career paths, its target is to develop a
uniform leadership culture and encourage cross-segment networking among the participants. 2017 saw the successful completion of the 11th generation of this program.
Specific support for school students, university students and graduates forms part of the Group’s strategy for skilled personnel,
ensuring early loyalty to the company and thus simplifying therecruitment process. T08
But it is not only our employees who are developed in line withthe corporate strategy and future market requirements –Jenoptik’s future HR needs are also aligned with the Group’s
international growth strategy. In addition to Germany, thisresults in a higher need for recruitment particularly in Asia andthe US. The target groups addressed by recruitment and thus
also HR marketing are primarily specialists and skilled workers
in the fields of natural and engineering sciences as well as
experts with business management and legal backgrounds.

Environmental Matters
We see the efficient use of resources and energy at all our global
locations as our corporate responsibility and here report voluntarily on key environmental matters in the Jenoptik Group. As
many of our products contribute to the efficient and responsible
use of resources, Jenoptik primarily makes an indirect contri­
bution to conserving resources.
Environmental management is an established part of our corporate activities, but we also oblige our suppliers and contractual
partners to comply with relevant laws to minimize environmental
risks. As a manufacturing company, we set our focus on efficient resource management so as to reduce energy consumption
and greenhouse gas emissions to the best of our ability, usecommodities and materials in a safe and saving manner andlargely avoid producing hazardous waste. Several Jenoptik companies are certified in accordance with the ISO 14001 environmental management system. Photonic Sence GmbH in Eisenach
was awarded an ISO 50001 energy management system certi­
ficate, as it has higher energy requirements than the other companies due to its energy-intensive handling of germanium andsilicon for high-precision optical systems.
Environmental management lies within the remit of Safety, Occupational and Environmental Protection, which reports directly
to the Chairman of the Executive Board. The Jenoptik companies

T08  Initiatives and Coorperations (Selection)
Jenoptik supports:• career guidance projects at schools, also offering their students the opportunity to complete state-level an internship•	young researchers as a longstanding corporate sponsor of the “Jugend forscht” initiative•	various industry organizations to promote professional development activities•	students in the form of degree theses, internships, and scholarships

Jenoptik works
together with:•	selected universities around the world with regard to HR marketing and recruitment, for research purposes,
and to foster the professional development of its employees•	selected universities around the world via projects and sponsorship activities, and is active in a range ofcommittees and networks in an advisory capacity58

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are each responsible for applying the law on all aspects ofenvironmental protection. The central environmental protection
officer is available to provide assistance where required and,as just one example, reviews all group investment projects withregard to their environmental relevance. The managers responsible for environmental issues at the German locations meet
twice a year to share their experiences and ensure a standard
approach to implementing environmental law requirements
and processes. Waste officers take care of all matters relating to
the production, recycling, and disposal of hazardous andnon-hazardous waste.

As a technology company, Jenoptik generates only small amountsof emissions within its plants (scope1); the majority of its
pollutant emissions are attributable to externally sourced energy(district heating or electricity). In order to meet our goal ofrecording energy consumption at all of the Group’s main
production sites, the American facilities were included in ourreports for the first time in the 2017 fiscal year. This will in
future provide comparison values that allow for an assessmentof the energy consumption levels as a ratio of revenue andconsequently in relation to changing levels of energy efficiency
in production.

193 Further
Information

As a company in the photonics market, Jenoptik generates only
minor amounts of hazardous waste, e. g. adhesive residues
or acetone. Within all segments located in Germany, types ofwaste are systematically recorded and categorized, and thequantities calculated. The volume of hazardous waste in the2017 reporting year fell marginally to 175 tons (prior year 183
tons); this was disposed of in waste treatment / disposal plants.
The quantity of non-hazardous waste, by contrast, rose to871 tons (prior year 620 tons), primarily due increased production at the Altenstadt location. In general, Jenoptik aims at
recycling waste through certified waste management facilities.
Through continuous waste separation and training of theemployees on waste prevention the amount of residual waste
was substantially reduced.
As a high-tech company, Jenoptik is dependent on a wide
range of raw materials. In the face of an increasing scarcity ofresources, Jenoptik is committed to making sparing use of thematerials it requires. We comply with applicable regulations, forexample the requirements of the European chemicals regulation REACH (Registration, Evaluation, Authorization and Restrictionof Chemicals) and the European RoHS directive (Restriction ofcertain Hazardous Substances), and are fully involved on associated committees. In the past fiscal year, a project team conducted a group-wide as-is analysis of all companies and iscurrently defining a target process in line with statutory requirements (REACH) to be implemented across the Group from2018 on. As Jenoptik does not require large quantities of water
for its production processes, we do not see ourselves encountering any key risks in this area. In view of its business purpose,
conservation regulations are also of only very minor significance to the Group. The objective of our purchasing processes
is to meet all regulations relating to conflict minerals in com­pliance with the Dodd-Frank Act.

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Jenoptik continues to implement and in part exceed statutory
requirements relating to nature conservation and environmental
protection for new buildings, extensions and the modernizationof production facilities. State-of-the-art technologies for saving
resources and protecting the environment are applied when
fitting out production facilities. As an example, the new production facility in Michigan, US, completed in 2017 was fittedwith the latest sensor-controlled LED lighting for the offices
and production environment, as well as special energy-saving
heating and air-conditioning equipment.

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Resource Management
Many of Jenoptik’s innovative products and services make a contribution to the efficient and responsible use of resources. As atechnology company, we are mostly involved in the areas where
our customers’ production processes and products can bemade more efficient. T09

Social Commitment /Corporate Citizenship  Supporting young people in their education and scientific activities, as well as in social projects is at the heart of Jenoptik’s
corporate citizenship. The Group supports a whole range of
non-profit projects, organizations and initiatives and is actively

T09 Contribution of our products to resource conservation
Product

Contribution to resource conservation

Jenoptik diode lasers and laser machines for a wide range
of applications, e. g. in medical technology or
the automotive industry• T he most efficient light sources available with an efficiencyof up to 70 percent• R esource-friendly alternative to traditional machining processes,
especially when machining high-strength steel with a low weight„JENOPTIK RayLance“ – powerful and energy-efficient
LED lighting system• A pprox. 40 percent higher light yield while maintaining highenergy efficiency• W ide-ranging use, particularly in high industrial spaces such as
warehouses, logistics buildings, and production facilities

Optical systems and components for information and datatransmission and medical diagnostics methods• Ongoing development toward ever-smaller crystalline structuresin semiconductor production opens up a growing number of
new applications• Time-saving processes and more cost-effective production
save resources

Metrology – systems and equipment to check shape androughness, particularly in the automotive industry• The results are more precise surfaces and tighter tolerances inengine components (downsizing) and thus entire vehicles
that require less fuel and produce fewer emissions• More complex transmissions for electromobility demand
the increasing use of metrology

Hybrid power generation systems to enable an efficient
power supply to the Patriot missile defense system• U se of battery technology reduces fuel consumption• Longerlife cycles for customers, less service expenditureand thus product sustainability

Traffic monitoring systems check compliance with roadtraffic regulations• C ontribution to increasing road safety and reducing accidents• R eduction in pollutant and noise emissions• Installation
at the side of the road limits interference inthe environment (no installation of monitoring gantries)

Toll payment monitoring systems on federal highways

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increasingly also abroad: T10•	A commitment to the younger generation with projects inscience, education, and in the social arena.
•	Art and culture projects to make our company locations
attractive and create good conditions for our employees’
work / life balance.
•	A commitment to integration and internationality tostrengthen the foundations of business and society
in the future.

193 Further
Information

ciples of a structured and standardized approach to defining“Jenoptik as a Corporate Citizen” and ensure a uniform methodof handling donations and sponsorship queries, as well as
carrying out sponsorship projects.
Our dedication to our region is of particular relevance. Since
1996, the Group has acted as the patron of the “Parent Initiative
for Children with Cancer Jena”. Donations both made by
Jenoptik and collected from partners, and the organization ofvarious events, have helped to support children with cancer
and their parents. Particularly worthy of note is the Easter Charity Concert given by the International Youth Orchestra Academy, the proceeds of which are donated to the initiative. In theUS, employees at the Rochester Hills, Michigan location provide
education and career guidance to young people from financially disadvantaged families. Jenoptik employees at the Jupiter,
Florida location assist the “Habitat for Humanity” organization inchampioning affordable, decent housing, and help to build
homes for families in need. In Huntsville, Alabama, our employees donate Christmas presents to children from disadvantaged
families as part of the “Angel Tree Program” every year. In 2017,
two children were also given the opportunity to spend theChristmas holidays with employee families.

Corporate citizenship is thus the direct responsibility of the
Executive Board office. Group-wide guidelines govern the prin-

T10 Social Commitment – Further Examplary Projects
Social issues

Jenoptik supports• 	Easter Charity Concert by the International Youth Orchestra
Academy for the Elterninitiative für krebskranke Kinder Jena e. V.
• „Habitat for Humanity“; Jupiter, Florida•	Fund-raising campaign on the occasion of the New Year's Eve
Reception for the Center for Children and Youth in Jena•	Summer camp for children of employess and for the firsttime for children from recognized refugee families

Scienceand education

Jenoptik has been a partner
for many years for•	the Thuringian youth researchers competition“Jugend forscht” (since 1991)•	the competition of school students“Schüler experimentieren” (since 2012)• long “Night of Sciences” in (since 2005)•	the workshops “BEGEGNUNGEN Kultur Technik Wirtschaft”
for students of the Ernst-Abbe-Hochschule Jena (since 2004)

Art and culture

Jenoptik focuses on promoting regional andyoung artists with its in-house“tangente” art exhibition (since 1994)• tangente “in space” – Peter Wackernagel• tangente “homo fragilis” – Thomas Lindner•	and together with partners the exhibition by Georg Thumbach“Ins Holz “, organized by the Friedrich-Schiller-University Jenaand the “Kirchentag auf dem Weg“ Church Congress on theoccasion of the anniversary of the Reformation

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As a responsible and socially committed company, Jenoptik
considers it its duty to play an active role in shaping its businessenvironment. As part of this process, our main concern is toachieve close, long-term partnerships, with the aim of providing
not just financial but also personal assistance. With our commitment to society, we want to strengthen the confidence
placed in Jenoptik and boost our employees’ sense of identification with the company. We also expect it to have a positiveeffect on our brand image, reputation and our attractiveness as
an employer.

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Since the company’s earliest days, Jenoptik has been enriching
life in Jena with art and cultural projects. The in-house “tangente”
art exhibition is a key part of this endeavor.

More information canbe obtained by going
to About Jenoptik / Responsibility / Compliance atwww.jenoptik.com

Together with numerous partners, the Group is also active asa member of the “Familienfreundliches Jena e. V.” (Family-Friendly
Jena) support group for projects conducted by the “Jenaer
Bündnis für Familie” (Jena Family Alliance) to improve general
underlying conditions, the work / life balance and equal opportunities in education. In the process, Jenoptik supports various
models of family-friendly childcare, the “Saaleknirpse” in Jena,
the “Wasserstrolche” in Wedel, and the “Talentschuppen” inMonheim. The highlight once again was the summer camp
jointly organized for children of Jenoptik employees and childrenof recognized refugee families.

Human Rights and Anti-Corruption

For further information of employee
matters see page56 ff. and page 81

In a globalized market environment, Jenoptik is fully committed
to responsible corporate governance and law-abiding, compliant conduct. We make our business decisions with this in mind
and always work to ensure that our actions do not contravene
regulations, laws or our values. Corporate Compliance & Risk
Management therefore lies within the remit of the Chairman of
the Executive Board, the Jenoptik Compliance Manager reports
relevant incidents directly and regularly and remains in close
contact with the entire organization and all employees. It organizes and manages the Group’s risk and opportunity management
system in close cooperation with the corporate departments
and the divisions’ risk officers.
Upholding human rights is one of Jenoptik’s key priorities also
in the supply chain. Jenoptik is committed to internationally recognized standards of human rights and does not tolerate any
form of slavery, forced labor, child labor, human trafficking, or
exploitation in its own business operations or those of its supply
chain. We expect our suppliers to comply with and respect
internationally recognized human rights standards, e. g. the Slavery and Human Trafficking Statement.    

For more information,
see the Risk andOpportunity Reporton page 108

All our suppliers are contractually bound to adhere to the standards of the “Code of Conduct for Suppliers to the Jenoptik

62

Group”, which was updated in 2017, and similarly oblige theirown suppliers to adhere to them. Processes relevant to theissue of compliance were revised in 2017 with the aim of identifying violations and high-risk business partners in good time. Ina two-step process, a supplier compliance declaration andan additional code of conduct for distributors first oblige all ourbusiness partners to adhere to the law. In the second step, acentralized high-risk business partner screening process is used
to ensure that Jenoptik cooperates only with those business
partners that meet all of its compliance requirements.
Anti-Corruption: Jenoptik fights all forms of active and passive
corruption and expects all its business partners to do the same.
We also see it as our responsibility to ensure that our customers and suppliers act in compliance with the law. For detailed
information on Jenoptik’s compliance management system,
the company guidelines and codes of conduct for employees,
suppliers and sales partners, our online training, and thewhistle­blower system implemented in 2017, we refer to the
Corporate Governance Report from page 36 on and the Risk
and Opportunity Report from page 108 on.

Quality Management and Brand Image
Quality Management  
The key to Jenoptik’s success as a technology company is primarily based on the quality of its products and solutions. Longstanding collaborations with key customers, sometimes in theform of development partnerships, and the confidence placedin us by our partners are proof that our products and solutions
are of impressive quality. As a quality leader, we are committed
to ensuring that the quality of our products and services isabove the average in many of our product areas. Quality management at Jenoptik is managed locally in the business units
and falls within the responsibility of the division managers. The
diversity of our product range makes this structure necessary;each division applies individual quality indicators (e. g. customer
satisfaction, complaints rate as a percentage of revenue, quality
level as a percentage of revenue).
One measure to ensure and further improve our quality is thequality initiative we launched in 2017; its impact can be felt

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now with an increased focus on internal customer and supplier
relationships, i. e. a better understanding of all parties relating todownstream processes.
In addition to certifications, further issues in quality managementat Jenoptik include standardization, process controls, tests
and continuous dialog with customers, e. g. analyses of customer
satisfaction.

The table below shows a selection of Group certifications andactions undertaken in 2017. In the Optical Systems division,

193 Further
Information

the quality management system was successfully switched to
DIN ISO 9001:2015, the environmental management system

to DIN ISO 14001:2015. JENOPTIK Robot GmbH in the Mobility
segment successfully passed the certification process for all
locations conducted by DEKRA in accordance with DIN EN ISO
9001:2015. In the past fiscal year, the Wedel location in the
Defense & Civil Systems segment renewed its occupational
health and safety management OHSAS 18001 certification andNATO quality assurance system certification in accordancewith AQAP 2110 / 2210.
Jenoptik’s brand image and reputation are of key importance inmany respects – the trust placed in us by our stakeholders,our position in the competitive environment, our attractivenessas an employer, and our employees’ sense of identification
with the company. As an international photonics company, we
work in many different markets and compete with numerous
companies to be visible, predictable and attractive both to customers, as a supplier of high-quality capital goods, and to

T11 Certification within the Group (selection)
Certification

Description

2017 actions

ISO 9001

Certification of quality management processes

Change in quality management system in the Optics &Life Science segment (JENOPTIK Optical Systems GmbH)and the Mobility segment (JENOPTIK Robot GmbH and
JENOPTIK Industrial Metrology GmbH) to ISO 9001:2015

ISO 50001

Certification of the energy management system

Certification of Photonic Sence GmbH due to energyintensive machining processes

EN 9100

Certification of quality management processes
specific to the aerospace and defense industries

ISO 13485

Certification of comprehensive quality management systems for the design and manufacture of medical products

ISO 14001

Certification of the environmental management system

ISO / TS 16949

Certification for the automotive industry

EG 748 / 2012

Certification as a manufacturer for the civil aviationindustry

EG 2042 / 2003

Certification as a maintenance company forthe civil aviation industry

IRIS

International Railway Industry Standard

ILO-OSH-2001 /OHSAS 18001

Certification of occupational safety andhealth management

Renewal of certification in the Defense & Civil Systems
segment (JENOPTIK Advanced Systems GmbH)

AQAO 2110 / 2210

NATO quality assurance system

Renewal of certification in the Defense & Civil Systems
segment (JENOPTIK Advanced Systems GmbH)

63

Renewal of certification in the Optics & Life Science segment (JENOPTIK Optical Systems GmbH)

53
64

Combined Non-financial Report

Almost all the Group companies comply with the requirementsof quality management standard ISO 9001; many of them also
meet the requirements of the ISO 14001 environmental management system.

125 Consolidated
Financial Statements

J E N O P T I K Annual Report 2017
Combined Non-financial Report

Further information
on strategy see
Management Reportfrom page 70

future employees. This is dependent on lasting and stable relationships with our customers and suppliers, shareholders
and other stakeholders, which we consistently strengthen withtransparent communication and trust. Internal and external
communications are the task of the corporate Communicationand Marketing department at Jenoptik, which reports directly
to the Chairman of the Executive Board and ensures a consistentimage for the overall Group and the Jenoptik brand. The aim
is to ensure that the company’s communications and public
image are up-to-date, clear, ongoing and memorable, and arealigned with the Executive Board’s strategic targets. All topics
relating to markets and products are managed locally by thedivision marketing managers in the operating areas. Group-wide
guidelines, for example, govern the information channels forinternal communications and central marketing. Communications
to the capital market are the responsibility of the Investor
Relations department, which also reports to the Chairman of the
Executive Board and remains in close, regular contact with
Corporate Communications.
Within the highly specialized photonics market, which is characterized by a multitude of smaller companies, the Jenoptik
brand is perceived as synonymous with a major supplier – withan integrated brand image covering all products. We havebeen actively shaping the Jenoptik umbrella brand throughout

64

the Group for over ten years. At present, the Group is working
to boost the brand’s international presence and further shore up
its brand positioning. We have been stepping up our regional
marketing efforts in Singapore and North America since the summer of 2017 to reflect the Group’s increasingly international
outlook. With its new strategy the Group will focus more intensively on the photonic core competencies of light and optics
under the brand Jenoptik. The introduction of an independent
brand for the mechatronic business (so far part of the Defense& Civil Systems segment) that better meets the specific market
requirements will be one of the priorities in the current fiscal
year. Brand management is made centrally at the Corporate
Center.
The Jenoptik Group benefits from the reputation of our headquarters in Jena, which is highly renowned by both scientists
and customers as an “Optical Valley”. Jenoptik is conscious of
this reputation and is involved in various activities aimed atsustainably improving the location. More information can befound in the Corporate Citizenship section of this chapter, on
page 60.
The audit report for the serparate combined non-financial
report can be found on page 202.