SilverArrow Capital Advisors LLP Intends To Nominate Three Directors At Rofin-Sinar Technologies Inc. 2016 Annual Meeting Of Stockholders - Seite 2

For the past five months, we have attempted to open a constructive dialogue and voice our concerns to the Board and the Rofin management team.  We have asked for minority representation on the Board so that we could help set forth the proper initiatives to improve performance and valuation.  We attempted to avoid a costly public campaign and desired to work together with the Board and Rofin management team, but we have encountered significant roadblocks at every turn, and it has become apparent to us that the Board has no intention of working with us for the benefit of all stockholders.  Instead, it appears that the members of the Board merely want to protect their own personal interests and have chosen to ignore the numerous mistakes that Rofin has made.

By way of example, effective July 1, 2015, the Company appointed Mr. Thomas Merk, formerly the Chief Operating Officer of the ROFIN Laser Micro Group and ROFIN Laser Marking Business, as President and Chief Executive Officer of the Company.  In our view, many of Rofin's numerous failings are operational in nature, and appointing the former officer partially responsible for these issues not only reflects poor judgment by the Board, but will also compound the Company's problems in the long run.

As such, we plan to nominate three new independent directors at the Company's 2016 annual meeting of stockholders. 

Below, we outline many of the issues that we have noted with respect to the Company, the solutions that could help realize at least a 120%[3] increase in the Company's stock price, and our experience in similar turnaround situations.

Sales and Market Share

While the global laser market has grown with a compounded annual growth rate ("CAGR") of 17.2% from 2010-2014, Rofin's sales have only grown by 5.8% over this period.  Compared to its peer group, Rofin's market share has decreased from 17% to 14% over the same period and from a high of 23% in 2008.  One would expect the Company to focus on why this has occurred and the steps that could be taken to improve sales.  However, while the global laser market is expected to grow with a CAGR of 15.7% over the next four years, analysts only expect Rofin's revenue to grow with a CAGR of 3.4% over the same period.  The Company appears not to recognize these opportunities, and we question whether the Company even understands them.  Consider the following: