Annual Report of the Würth Group 2013

Transcription

CONTENTS
1
10
A CHANGE OF PERSPECTIVE
BULLETIN
10
14
CHANGE OF EVITCEPSREP
16
Report of the Advisory Board
Report of the Central Managing Board
GROUP MANAGEMENT REPORT
40
41
41
42
Economic environment
Management reorganization
Business development
Sales by region
46
The operational units of the Würth Group
48
Würth Line:
The Würth Line divisions
50
51
52
53
54
55
56
57
Allied Companies:
Electrical Wholesale unit
Trade unit
Production unit
Electronics unit
RECA Group unit
Tools unit
Screws and Standard Parts unit
Financial Services unit
THE BOARDS
16
40
17
18
20
Legal and organizational structure
of the Würth Group
Advisory Board
Central Managing Board
Customer Advisory Board
21
COMPANY PROFILE
22
COMMITMENT
58
22
26
32
36
Quo vadis Europe?
Experiencing art and culture
Sharing commitment
Shaping education
64
67
71
73
74
75
75
79
CONSOLIDATED FINANCIAL STATEMENTS
80
81
82
84
86
87
88
www.wuerth.com
Results of operations, net assets
and financial position
Research and development
Risk and opportunities report
Employees
Corporate responsibility
Corporate governance report
Subsequent events
Outlook
Consolidated income statement
Consolidated statement of
comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Consolidated value added statement
Notes to the consolidated financial statements
AT A GLANCE
»
CONTENTS
1
10
A CHANGE OF PERSPECTIVE
BULLETIN
10
14
CHANGE OF EVITCEPSREP
16
Report of the Advisory Board
Report of the Central Managing Board
40
41
41
42
Sales by region
46
The operational units of the Würth Group
48
Würth Line:
The Würth Line divisions
50
51
52
53
54
55
56
57
Allied Companies:
Electrical Wholesale unit
Trade unit
Production unit
Electronics unit
RECA Group unit
Tools unit
Screws and Standard Parts unit
Financial Services unit
THE BOARDS
16
40
17
18
20
Legal and organizational structure
of the Würth Group
Advisory Board
21
COMPANY PROFILE
22
COMMITMENT
58
22
26
32
36
Quo vadis Europe?
Experiencing art and culture
Sharing commitment
Shaping education
64
67
71
73
74
75
75
79
80
81
82
84
86
87
88
www.wuerth.com
Results of operations, net assets
and financial position
Research and development
Employees
Corporate responsibility
Subsequent events
Outlook
Consolidated income statement
Consolidated statement of
comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Consolidated value added statement
Notes to the consolidated financial statements
AT A GLANCE
»
THE WÜRTH GROUP AT A GLANCE
OPERATIONAL UNITS
SHARE IN SALES
Würth Line divisions
WÜRTH GROUP
Sales
in millions of EUR
2009
2010
2011
2012
2013
7,522
8,633
9,699
9,985
9,745
57,882
62,433
66,113
65,169
63,571
in millions of EUR
235
385
395
415
445
in %
3.1
4.5
4.1
4.2
4.6
EBIT
in millions of EUR
267
398
450
448
495
EBITDA
in millions of EUR
549
690
736
762
798
Net income for the year
in millions of EUR
111
268
271
279
309
Cash flow from operating activities
in millions of EUR
800
216
540
618
599
Investments
in millions of EUR
263
283
455
465
433
Equity
in millions of EUR
2,600
2,867
3,042
3,204
3,399
Total assets
in millions of EUR
6,292
6,826
7,771
7,649
7,978
A/neg.** A /stable
A/stable
A/stable
A/stable
Employees
Pre-tax operating result *
Return on sales
Rating by Standard & Poor’s
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Metal
16.4
1,603
1,658
– 3.3
Auto
14.6
1,421
1,451
– 2.1
Wood
10.0
971
966
+ 0.5
Industry
8.8
858
869
– 1.3
Construction
6.2
601
598
+ 0.5
56.0
5,454
5,542
– 1.6
Allied Companies
Total
The consolidated financial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs).
* Earnings before taxes, impairment of goodwill and financial assets, and changes recognized in profit or loss of non-controlling interests disclosed as liabilities
** Negative outlook
SALES
WÜRTH GROUP in millions of EUR
SHARE IN SALES
Allied Companies’ units
OPERATING RESULT
9,699
9,985
9,745
7,522
450
385
395
415
445
Würth Line
5,000
6.0
300
235
2,500
3.0
150
2009
2010
2011
2012
2013
2012
in millions
of EUR
Change
in %
10.0
976
988
– 1.2
Trade
8.9
872
849
+ 2.7
Production
6.7
656
591
+ 11.0
Electronics
5.2
504
691
– 27.1
RECA Group
4.9
473
483
– 2.1
Tools
3.5
342
355
– 3.7
Screws and Standard Parts
2.5
243
265
– 8.3
Financial Services
1.1
109
104
+ 4.8
Other
1.2
116
117
– 0.9
Total
44.0
4,291
4,443
– 3.4
600
8,633
7,500
2013
in millions
of EUR
Electrical Wholesale
Operating result in millions of EUR
Return on sales as a percentage
10,000
2013
in %
2009
2010
2011
2012
2013
THE WÜRTH GROUP AT A GLANCE
OPERATIONAL UNITS
SHARE IN SALES
Würth Line divisions
WÜRTH GROUP
Sales
in millions of EUR
2009
2010
2011
2012
2013
7,522
8,633
9,699
9,985
9,745
57,882
62,433
66,113
65,169
63,571
in millions of EUR
235
385
395
415
445
in %
3.1
4.5
4.1
4.2
4.6
EBIT
in millions of EUR
267
398
450
448
495
EBITDA
in millions of EUR
549
690
736
762
798
in millions of EUR
111
268
271
279
309
in millions of EUR
800
216
540
618
599
Investments
in millions of EUR
263
283
455
465
433
Equity
in millions of EUR
2,600
2,867
3,042
3,204
3,399
Total assets
in millions of EUR
6,292
6,826
7,771
7,649
7,978
A/neg.** A /stable
A/stable
A/stable
A/stable
Employees
Pre-tax operating result *
Return on sales
Rating by Standard & Poor’s
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Metal
16.4
1,603
1,658
– 3.3
Auto
14.6
1,421
1,451
– 2.1
Wood
10.0
971
966
+ 0.5
Industry
8.8
858
869
– 1.3
Construction
6.2
601
598
+ 0.5
56.0
5,454
5,542
– 1.6
Allied Companies
Total
The consolidated financial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs).
* Earnings before taxes, impairment of goodwill and financial assets, and changes recognized in profit or loss of non-controlling interests disclosed as liabilities
** Negative outlook
SALES
SHARE IN SALES
Allied Companies’ units
OPERATING RESULT
9,699
9,985
9,745
7,522
450
385
395
415
445
Würth Line
5,000
6.0
300
235
2,500
3.0
150
2009
2010
2011
2012
2013
2012
in millions
of EUR
Change
in %
10.0
976
988
– 1.2
Trade
8.9
872
849
+ 2.7
Production
6.7
656
591
+ 11.0
Electronics
5.2
504
691
– 27.1
RECA Group
4.9
473
483
– 2.1
Tools
3.5
342
355
– 3.7
Screws and Standard Parts
2.5
243
265
– 8.3
Financial Services
1.1
109
104
+ 4.8
Other
1.2
116
117
– 0.9
Total
44.0
4,291
4,443
– 3.4
600
8,633
7,500
2013
in millions
of EUR
Electrical Wholesale
10,000
2013
in %
2009
2010
2011
2012
2013
DO YOU LIKE TO CHANGE PERSPECTIVE ?
PEOPLE WHO WALK
IS IT NICER TO DREAM
ON THEIR HANDS ALWAYS HAVE
WITH YOUR HEAD AT THE TIP OF
A VIEW OF THE BLUE SKY.
YOUR TOES?
EVER EATEN SPAGHETTI
IF YOU’RE IN THE SOUTH AND LOOKING NORTH,
OFF THE CEILING?
YOU’RE BOUND TO SEE THE SUN.
SHOULD YOU BUTTER YOUR BREAD
OR BREAD YOUR BUTTER?
FALLING IN LOVE IS A SURE THING WHEN
YOU’RE HEAD OVER HEELS.
CAN YOU THINK LATERALLY WHEN
YOU’RE STANDING UP?
1
WÜRTH VISIONS
PEOPLE WITH FLEXIBLE
MINDS CAN ALWAYS
FIND THE RIGHT PLACE
TO WORK.
2
3
WÜRTH VISIONS
NOT EVERY COMPANY
CAN SAY THAT THE
SKY’S THE LIMIT.
4
5
WÜRTH VISIONS
THE POSSIBILITIES
ARE ENDLESS FOR
PEOPLE WHO ALLOW
THEMSELVES TO BE
INSPIRED.
6
7
WÜRTH VISIONS
8
WITH A HEAD FULL
OF IDEAS, YOU CAN
LITERALLY TURN THE
WORLD UPSIDE
DOWN FOR YOUR
CUSTOMERS.
9
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF THE ADVISORY BOARD
Bettina Würth, Chairwoman of the Advisory Board of the Würth Group
Ladies and Gentlemen,
“We want to venture towards more democracy”. When the German Chancellor Willy Brandt used this phrase as the guiding
principle behind his government statement on 28 October 1969, the German economy was in full bloom. There was a real
sense of a new beginning among society at large, and technological progress was fuelling hopes for the future – everything
was possible, it seemed.
So what remains of this confidence and unbridled optimism? Not much! Dramatic events like the terrorist attacks of
11 September 2001 and the financial and economic crisis of 2008 have done too good a job of exposing just how vulnerable
our globalized society is. So it comes as no surprise that the World Bank’s recent “Risk and Opportunity” report focuses
on economic risks, devoting only a few lines to the opportunities. If nothing else, this fixation on risk is casting a shadow
over day-to-day business life. Our customers are also feeling the heat, for example when they seek to secure external financing
for their investments.
The main thing that an environment that is hostile towards investment does is to hinder progress. The consequences are fatal.
The American economist Robert J. Gordon, for example, believes that in the long run, economic growth is an impossibility
without innovation. As a company that sees itself as one of the driving forces of innovation on the market and that owes
its market leadership to this focus on innovation, we have to respond to these trends by “venturing towards more change”.
Or rather: by venturing towards even more change.
10
WHICHEVER WAY YOU
LOOK AT IT: WE HAVE
OUR FUTURE IN OUR
OWN HANDS.
Every reorientation process starts with a change of perspective
The last two years have encouraged us not only to look at how we work, but also to put our entire business organization
under the microscope. With total sales of EUR 9.75 billion, we were, sadly, unable to meet our targets for the 2013 fiscal
year. This is something we really need to work on. On the other hand, we are encouraged by the fact that we achieved an
operating result of EUR 445 million. This is testimony to the unwavering motivation of our employees and to healthy levels
of productivity. I would like to express my most sincere thanks to the members of the management and to all of our employees
for this hard work.
Anyone who wants to develop is well advised to start by taking a critical look at his or her own perceptions. To enable us
to do this, we called on the advice of external experts. Having someone look at the company through an outsider’s eyes
helped us to take a good look at established structures at all levels, simplify our processes and focus even more on what
the market needs. Looking back, we left virtually no stone unturned and made the necessary adjustments within the space
of only a few months. The sales activities of the Würth Line are a good example of just how much of an impact this process
of change has had on our company. Ever since our company was established, we have focused primarily on direct sales in
this area. We have also set up an efficient sales branch network and have continually stepped up our e-commerce activities
over the past few years.
11
We are changing at all levels
Given that we are now generating a growing proportion of our sales via these additional sales channels, the next logical
step was to move from our previous focus on the sales force towards a contemporary multi-channel strategy. Coordinated
interaction between the different customer contact points allows us to offer tailor-made sales solutions for every sector
and company size – true to our motto: “To each customer their own Würth”. As far as our sales staff are concerned, this
means, for example, that they can focus more on their role as their customers’ problem-solver in the future. This expertise
where the customer needs it remains indispensable for us, which is why we will be continuing to strengthen our sales force.
Our quest to achieve more clout and speed in our concentrated marketing efforts also involves looking at our management structures. We have whittled the Central Managing Board – our most important strategic body – down from seven to
four members. Robert Friedmann, Peter Zürn, Uwe Hohlfeld and Joachim Kaltmaier share responsibility for the Würth Line
and our Allied Companies. Thanks to the reorganization measures, far-reaching changes have been initiated within the
entire company within the space of only a few months. This would have been a virtually impossible feat without motivated
employees. Sales development over the past few months has confirmed that these changes were the right move, with signs
of real success already starting to emerge. I would like to take this opportunity, on behalf of the Advisory Board, to express
my thanks again.
We will be pinpointing and exploiting new market opportunities
In summary, we have initiated all of the necessary changes to get the Würth Group on the path to growth. Our optimism is
also based on macroeconomic developments. The eurozone is past the worst. The current growth forecast for the German
economy comes in at 1.9 percent, which will also lay a good foundation for strong growth. In North and South America, the
forecasts are pointing to stable growth rates around the three percent mark. On the high-growth markets in the east – India
with economic growth of 5.0 percent and China with 7.2 percent – we are also on the cusp of setting new sales records. By
way of conclusion, we do not see too many risks lurking behind trends. Instead, we believe that they offer good opportunities
for achieving solid growth again this year and allowing us to surpass the EUR 10 billion mark for consolidated sales. With
more than 400 companies in over 80 countries, Würth has a presence in all of the world’s major regions. What is more, our
Allied Companies allow us to cover a broad spectrum of different services, allowing us to stimulate growth in many different
areas of our Group.
As a result, we are looking ahead with a sense of optimism and drive. After all, “Change begets change. Nothing propagates so fast”. Charles Dickens’ words continue to ring true to this day. We have already taken the first steps with the
far-reaching changes implemented over the past few months. And the current developments show that our resolve will pay off.
Work of the Advisory Board
In 2013, the Advisory Board of the Würth Group held four extensive meetings, with the second joint strategy meeting of
the Advisory Board and the Central Managing Board being held as an extraordinary session in June 2013. These meetings
were based on the reports of the Central Managing Board members on the business situation, projections and opportunity
and risk management. All transactions subject to approval pursuant to the company statutes were submitted to the Advisory
Board for decision in good time and considered in detail; in urgent cases, resolutions were passed by circularization.
The activities of the Advisory Board in 2013 were characterized by a strong focus on providing strategic support to the
Central Managing Board. Key aspects of these activities include the new management structure of the Würth Group and
12
the associated decision to reduce the size of the Central Managing Board and reorganize the Würth Group’s second-level
management. The strategic work of the Advisory Board also focused on the enhancement of the traditional Würth business
model to create a multi-channel sales company, and the definition of criteria allowing a refined assessment of the different
business models within the Allied Companies.
The three Advisory Board committees, the Audit Committee, the Investment Committee and the Personnel Committee, met
three times each in 2013. The committees serve to increase the efficiency of the Advisory Board and carry out preparatory
work on complex issues. The Personnel Committee also has the power to pass resolutions regarding management employment contracts. The committee chairs each report regularly to the Advisory Board on the work of the committees.
On 8 April 2014, the Advisory Board’s Audit Committee took an in-depth look at the 2013 consolidated financial statements,
including the Group management report, as well as the audit report prepared by Ernst & Young. Ernst & Young audited the
consolidated financial statements and the Group management report and issued an unqualified opinion thereon. The Audit
Committee examined these documents and approved them. The Audit Committee also focused on risk management, the
corporate governance structure and internal audit.
The Advisory Board’s Investment Committee assessed the investment projects that are subject to approval and classified
them according to urgency and significance. The Würth Group will remain true to its investment culture, exercising the necessary degree of caution, as a prerequisite for the company’s growth, meaning that the investments approved for the 2014
fiscal year will be on a similar level to previous years, taking sales growth into account. The Advisory Board approved the
investment and financial plan of the Würth Group for the fiscal year 2014 at its meeting on 13 December 2013 based on
the proposal made by the Investment Committee.
The Advisory Board’s Personnel Committee dealt, at its meetings, with all personnel measures falling within the Advisory
Board’s area of competence, in particular also with the personnel measures associated with the reorganization of the
Group’s first and second-level management tiers. The Committee’s work also focused on the personnel development Group
function, which was reorganized with the establishment of the Würth Business Academy in Rorschach. The Committee also
looked at succession planning and the structure of the incentive and remuneration systems.
The Advisory Board of the Würth Group would like to thank the Central Managing Board and the Supervisory Board of the
Würth Group’s Family Trusts for the good working relationship, especially Prof. Dr. h. c. mult. Reinhold Würth, Chairman of
the Supervisory Board of the Würth Group’s Family Trusts, who took part in all meetings of the Advisory Board. We would
also once again like to thank all employees for their strong commitment and their decisive action, as well as all our customers
and business partners for their loyalty to the Würth Group.
Sincerely,
Bettina Würth
Chairwoman of the Advisory Board
of the Würth Group
13
REPORT OF THE CENTRAL MANAGING BOARD
Robert Friedmann, Chairman of the Central Managing Board of the Würth Group
Stagnating sales – increased earnings: this is the situation that Würth was confronted with in 2013. Naturally, we would
like to have seen an upward trend for both figures. But 2013 was not an easy year for Würth. Varied overall economic
conditions resulted in different sales trends in the individual regions, with sales down in many places. This explains why
our sales in fiscal year 2013 were down year-on-year to EUR 9.75 billion (2012: EUR 9.98 billion), which corresponds to
a drop of 2.4 percent. If we adjust the figures to reflect the solar activities, which were abandoned in 2012, the decline
comes in at 0.1 percent, as the solar sales amounted to around a quarter of a billion euros in 2012. We are still feeling
the impact of the economic crisis in southern Europe. After all, we generate 70 percent of our sales in the euro zone. Our
broad global standing helps us to counteract these trends. Our business on the US market, for example, showed stable
development, continuing on the upward trajectory plotted in recent years. This is also due to demand among private
households and the associated revival in the construction sector.
We are delighted to report an increase in our operating result for 2013, based on continuing operations, to EUR 445 million
despite the stagnating sales (2012: EUR 415 million). The most profitable region within the Group was Germany, which
generated an operating result of EUR 226 million (2012: EUR 210 million), underlining its role as the largest and most
important individual market for the Würth Group. The entities outside Germany, too, generated a higher result than in 2012
despite the developments in southern Europe. The improvement in the operating result shows us that Würth not only boasts
strong earnings power, but also that our measures to boost productivity and reduce fixed costs have borne fruit.
14
The Würth Group enjoys a solid standing in its traditional business areas and enjoys an excellent market position. Our
corporate culture is a special one that is put into practice day after day by each and every employee and demonstrated by
our managers: the foundation that supports the structure of our company. Nevertheless, the title of our Annual Report is
“A change of perspective”? Do we need a change of perspective?
It is becoming more difficult to achieve high growth rates. But that doesn’t mean it is impossible. Because we are constantly
taking a critical look at ourselves and are open to change. This also means that we have to have the courage to grow, expand, reorganize and also make decisions. This flexibility has always been part of how we see ourselves. Our actions were
never characterized by a wish to rigidly follow a straight onward path without looking to the left or to the right, but rather to
keep our company’s structure flexible enough to cushion any shocks and fluctuations. One of our key measures has been
the focus on new e-commerce activities, but these measures also include massive investment in innovative logistics, the expansion of the sales force on young markets, the constant additions to the sales branch network and moves to position Würth as
an employer in the manner that is best suited to the target group. On established markets, we are refining our sales activities
by way of regionalization, customer segmentation, the expansion of the customer base and a policy of seeking out potential.
But we are also asking ourselves fundamental questions: what, for example, will the workplace of the future look like at
Würth? What options are open to us in order to systematically incorporate ecological, economic and social sustainability
into our day-to-day business? How can we grow in line with the wishes of our customers?
The thing that makes Würth special are its employees. Their enthusiasm, their passion, their systematic approach. We would
like to thank them for their professionalism and commitment, especially in times when this isn’t easy. We would like to thank
our customers, whose trust forms the basis for our work. And we would also like to thank the Councils of Confidence and
Works Councils in the Würth Group, as well as the Customer Advisory Board, for their work. Their critical appraisal allows
us to move forward and opens the door to new perspectives. The cooperation with the members of the Advisory Board and
the Supervisory Board of the Würth Group’s Family Trusts is also consistently constructive. Even in the difficult 2013 fiscal year,
we enjoyed the full support of the Würth family. We would like to thank Prof. Dr. h. c. mult. Reinhold Würth, his wife Carmen
and Bettina Würth for their support, which has played a key role in ensuring that we can enhance our business models in a
strategically sustainable manner.
If you want to achieve something, you don’t always have to turn the world upside down, but it sometimes helps to change
perspective and challenge long-held ideas.
We are optimistic as far as 2014 is concerned.
For the Central Managing Board of the Würth Group
Robert Friedmann
Chairman of the Central Managing Board
of the Würth Group
15
WÜRTH GROUP:
LEGAL STRUCTURE
(SIMPLIFIED CHART)
WÜRTH FAMILY TRUSTS
Adolf Würth GmbH & Co. KG
Germany
German
subsidiaries
Würth Promotion Ges.m.b.H.
Austria
Reinhold Würth Holding GmbH
Germany
Würth International AG
Switzerland
Subsidiaries
outside Germany
Würth Finance International B.V.
Netherlands
Subsidiaries
outside Germany
Subsidiaries
outside Germany
ORGANIZATIONAL STRUCTURE
Advisory Board
9 members
4 members
Executive Vice Presidents
20 members manage the strategic business units (functions, divisions, regions)
Managing Directors of over 400 separate entities
16
ADVISORY BOARD
The Advisory Board is the supreme supervisory and controlling body of the Würth Group. It advises on strategy, approves
corporate planning as well as the use of funds. It appoints the members of the Central Managing Board, the Executive Vice Presidents
as well as the managing directors of the companies generating high sales.
(as of 1 January 2014)
Bettina Würth
of the Würth Group
Dr. Frank Heinricht
Deputy Chairman of the Advisory
Board of the Würth Group (since
1 January 2014), Chairman of the
Management Board of Schott AG,
Mainz
Peter Edelmann
Member of the Advisory Board,
Managing Partner of
Edelmann & Company, Ulm
Wolfgang Kirsch
Member of the Advisory Board
(since 1 January 2014), Chairman
of the Board of Management of DZ
Bank AG, Frankfurt/Main
Axel C. A. Krauss
Member of the Supervisory Board of
Unilever Deutschland, Hamburg
Dr. Bernd-Albrecht von Maltzan
former Divisional Board Member
and Senior Advisor at Private Wealth
Management Deutsche Bank AG,
Frankfurt/Main
Honorary Chairman of the
Advisory Board
Jürg Michel
(since 1 January 2014), former
Member of the Central Managing
Board of the Würth Group
Honorary members of the
Advisory Board
Ina Schlie
(since 1 January 2014), Head of
Group Tax at SAP AG, Walldorf
Dr. Martin H. Sorg
Certified Public Accountant, Partner of
the law firm Binz & Partner, Stuttgart
Prof. Dr. h. c. mult. Reinhold Würth
Chairman of the Supervisory Board of
the Würth Group’s Family Trusts
Rolf Bauer
Honorary member (since 1 January
2014), former Member of the Central
Managing Board of the Würth Group
Dr. Michael Rogowski
Honorary member, Chairman of the
Foundation Board of
Hanns-Voith-Stiftung, Heidenheim
Dr. Bernd Thiemann
Honorary member (since 1 January 2014),
former Chairman of the Management
Board of Deutsche Genossenschaftsbank AG, Frankfurt/Main
17
CENTRAL MANAGING BOARD
From left to right: Peter Zürn, Joachim Kaltmaier, Robert Friedmann, Uwe Hohlfeld
18
The Central Managing Board is the most senior decision-making board of the Würth Group.
It has four members and is comparable to the management board of a group holding company.
Its most important duties include corporate strategy planning, the selection of executives as well
as the management of strategic business units and functions.
Robert Friedmann
Chairman of the Central
Managing Board
of the Würth Group
Peter Zürn
Deputy Chairman of the
of the Würth Group
Uwe Hohlfeld
Member of the Central
Managing Board
of the Würth Group
Joachim Kaltmaier
Member of the Central
Managing Board
of the Würth Group
19
CUSTOMER ADVISORY BOARD
The Customer Advisory Board brings together Würth customers from the worlds of trade and industry. The members report on developments in their sector and support Würth in aligning its activities with customer requirements. The board’s
meetings, which are held twice a year, also look at new products and services.
Joachim Wohlfeil
Chairman of the Customer Advisory
Board, managing director of Ernst
Wohlfeil GmbH, Sanitärtechnik,
Karlsruhe, President of Handwerks
kammer Karlsruhe (Chamber of
Trade Karlsruhe)
Johannes Moser
Former Director and now freelance
consultant of the company Imtech
Deutschland GmbH & Co. KG,
Stuttgart
Dr. Thomas Peukert
Managing Director of Stahl
CraneSystems GmbH, Künzelsau
20
Roland Schuler
Member of the Board of Management of BayWa AG, Munich
Rudolf Wohlfarth
Member of the management of the
Emil Frey Group, Chairman of the
Management Board of the Emil Frey
Group Germany, Stuttgart
Burkhard Weller
Managing Partner of Wellergruppe
GmbH & Co. KG, Berlin
Honorary Chairman of the
Frank Westermann
Managing Director of Karl Westermann GmbH & Co. KG, Denkendorf,
Chairman of the Technology Committee of Landesverband Holz und
Kunststoff, Baden-Württemberg
Gerhard Irmscher
COMPANY PROFILE
Würth Group: world market leader for trading in assembly and fastening materials
The foundation stone for the Würth Group was laid in 1945 by Adolf Würth: he sets up Adolf Würth GmbH & Co. KG, a simple
company selling screws and consisting of two men, the parent company of the Würth Group, in Künzelsau.
After his father’s early death, Reinhold Würth takes over at the helm of the family business aged 19. Back then, annual sales
came in at EUR 80,000. Today, 60 years later, the Group generates sales of EUR 9.75 billion and has a workforce of more
than 63,000. The Group’s international focus started with the formation of the first foreign company in the Netherlands in
1962. Today, the Group has more than 400 companies and operates in more than 80 countries.
The Würth Group is split into two operational units: Würth Line and Allied Companies. The Würth Line companies are responsible for the Group’s conventional core business, the sale of assembly and fastening materials. More than 100,000 products
have to meet our exacting quality standards: screws, screw accessories, dowels, chemical technical products, furniture and
iron fittings, tools, stocking and picking systems and occupational safety equipment for professional users. Allied Companies
operate in related areas as sales or manufacturing companies, and as financial services providers.
With more than 400 sales branches, Adolf Würth GmbH & Co. KG is closer to its customers than any of its competitors. The
company boasts around 1,500 sales branches across the globe. A sales organization that includes 30,000 sales representatives worldwide guarantees the provision of competent advice to three million customers from trade and industry. Online
shop, e-Procurement, apps: the Würth Group is proficient in the e-commerce sector, too. Our objective is clear: to offer customized services, practical system solutions and a broad range of products in order to make our customers’ work easier.
SALES DEVELOPMENT
9,745
10,000
8,633
7,500
CAGR: 22.0 %
(Compound Annual Growth Rate)
5,136
5,000
2,500
1,234
0.08
1954
1960
282
33
1.0
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
2013
21
QUO VADIS EUROPE?
If we look at the history of the European Union since those first hesitant attempts to bring Europe
together after the Second World War, the period from the establishment of European Coal
and Steel Community in 1951 to today, at the end of 2013, then we can only say that astounding progress has been made over these 62 years. Border controls have been abolished for
most European citizens; from Helsinki to Lisbon, and from Athens to Dublin, people use the
same currency to pay; but the creation of a single European jurisdiction is much more important. A lawyer I know, who is licenced to practice both in the US and in Germany, recently explained to me: “As far as the legal system is concerned, the European Union is already streets
ahead of the United States of America.”
The resulting latent changes in opinion among EU citizens, which are more of a subconscious
nature, should not be underestimated either. Although people in all member states never seem
to tire of bashing the EU and its excessive Brussels-based bureaucracy, the vast majority of
citizens would be loathed to see the abolition of the EU.
This ambivalent “love-hate” relationship can certainly be compared to the feelings of many
citizens from the former East Germany – as time passes, memories of life in the former East
Germany become embellished, but I don’t know anyone who would like to have the old East
Germany back.
If we look at which forces are putting the brakes on the further development of the European
Union, we can identify two main sources. First, obviously, our friends in the UK and second,
the opponents of the euro. Due to their island location, the British are born seafarers and travelled the world for centuries with the British Empire. So we have to understand that integration
into a well-oiled European Union is perhaps time times harder, mentally and ideologically,
for our British friends than it is for all continental Europeans. If the referendum that is planned
in the UK for 2017 results in the majority of citizens voting against further membership of
the European Union, then we should not exert any pressure and should accept, in the spirit of
peace and friendship, an independent, isolated United Kingdom. This would also, to be honest, remove one of the main obstacles to further EU integration.
The other obstacle comes from the opponents of the euro. The question that has reared its
head in Germany is that of a return to the German mark. If we look at the euro as a currency
from its introduction in 2002 to date, then the euro has certainly more than survived its baptism of fire: the US would have liked to have seen the euro disintegrate in the course of the
real estate and mortgage crisis of 2008/2009, removing any competition to the dollar as a
reserve currency.
22
Prof. Dr. h. c. mult. Reinhold Würth,
Chairman of the Supervisory Board
of the Würth Group’s Family Trusts
This did not happen. The economic power behind the euro zone, with its 318 millions citizens, provides a steady foundation
for the stability of our currency – provided that the governments involved pursue a sensible currency policy.
One particularly strong argument in Germany is that we have to cough up to cover the debts of the southern European
countries, Greece, Italy, Spain and Portugal, as taxpayers, which is why the German mark should be reintroduced, as is
one of the main aims of the recently established political party, Alternative für Deutschland (AfD).
Whether we like it or not, the truth of the matter is that Germany has to assume some liability for the debt of the southern
European countries as part of the ESM and EFSF rescue funds. And this is not a bad thing if we can summon only a tiny
spark of European solidarity: within the Federal Republic of Germany, a system known as Länderfinanzausgleich (federal
state fiscal equalization scheme) has been in place for decades. Traditionally, Baden-Württemberg, Bavaria and Hesse
have been paying billions into this pot every year in order to ensure more or less equal living conditions within Germany.
So why shouldn’t this principle apply within the European Union? Germany, in particular, reaps manifold benefits from the
euro: if we were to abandon the single currency, a new German mark would soon appreciate so much against all of the
world’s other currencies that the German export industry would very quickly become uncompetitive and would suffer bitterly.
So we are currently benefitting massively from the euro.
Secondly, there is the “return on investment”, namely the fact that we can live in peaceful times. Is there anything more
precious in life? Not really.
I make no secret of the fact that I’m a passionate European and would like to see less power given to nation states and, at
the same time, more moves to strengthen the underlying regions. We need the sense of a spiritual home, familiarity and security that we can find as South Tyroleans, Bavarians, Flemish or Basques more than those that we can find as Germans, Italians, Belgians or Spaniards.
My conclusion: Vivat Europa!
Yours,
Reinhold Würth
23
BULLETIN THE BOARDS COMMITMENT 24
GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
COMMITMENT:
IT’S A QUESTION
OF HONOR.
25
EXPERIENCING ART AND CULTURE
Würth House in Rorschach The inseverable links between art,
culture and Würth are evident from Würth House in Rorschach. The
new building on the Swiss bank of Lake Constance, which was officially opened on 20 April 2013, is home to more than just six Würth
companies – Würth Finance, Würth Financial Services AG, Würth
ITensis, Würth Logistics, Würth Management AG and the event agency
marbet. The building is also home to a craftsman shop and the Würth
Group training center. The Forum Würth Rorschach also presents
Würth’s extensive collection of artwork, which now comprises more
than 16,000 works of art, in an area measuring around 600 square
meters. Entitled “Première”, the opening exhibition puts the main focal
points of the collection, classical modernism and contemporary art, in
the spotlight. There is a particular focus on Swiss art. A presentation
in the bright foyer of Forum Würth Rorschach is dedicated to the Danish
sculptor Robert Jacobsen, one of the key artists represented in the
Würth Collection from day one.
When it came to the realization of the new building, the renowned
Zurich-based architects Gigon / Guyer emerged as the winners in a
competition that attracted high-profile entries. Their plans are entitled
“play of light” (Lichtspiel) and pay tribute to the building’s unique
location on the lake. Würth House Rorschach beckons to passers-by
with its green glass exterior that alternates between transparency
and reflection, and holds a mirror to the special flair and beauty of
the surrounding area. The relief formation of the building complex reacts to the station building opposite with low-rise cubes, and to the
vast expanse of the park and lake with a higher element. The five-
26
story building has a total volume of around 150,000 cubic meters,
with a glass shell covering the entire building. This outer layer of
glass features an offset arrangement of panes of glass with a green
hue and fine, metallic textile reinforcements. This produces a rhythmic
glass curtain.
Forum Würth Rorschach is the 15th museum housing the Würth Collection. The building, on the banks of lake, is also the third Swiss location, after Chur and Arlesheim, in which Würth is making its corporate
culture truly visible for miles around in a high-quality design format.
Würth House Rorschach is surrounded by a “Jardin extraordinaire”
that is open to the public, an exceptional garden that is brought to
life by the charming, mosaic sculptures – some of which can be used
for play – like the “Dragon” or the “Bear” designed by Niki de
Saint Phalle. A revolving Nana, one of her best-known figures, also
welcomes visitors to the part, symbolizing the world in the sculpture
named “Le Monde”. Anyone wandering along the edge of the lake
can encounter other highlights of modern sculpture, like the sun dial
sculpture or the monumental bronze figure “Large Interior Form” by
Henry Moore.
The extremely positive response to the building in eastern Switzerland can be seen not only from the rush of visitors keen to attend its
open day. Forum Würth Rorschach has also proven extremely popular, with more than 50,000 visitors since it was opened.
RORSCHACH Located directly on the Swiss bank
of Lake Constance, the green-tinged crystalline structure complements the surrounding area harmoniously.
Würth House Rorschach is home to six Würth Group
companies, a craftsman shop, a training center and
600 square meters of exhibition space.
27
KUNSTHALLE WÜRTH Around
200 works from the late middle
ages to the present day were on
display in the “Menagerie – An
Animal Show from the Würth Collection” exhibition in Kunsthalle
Würth in Schwäbisch Hall. In addition to paintings, graphics and
over-sized sculptures, the exhibition also features curious exotic
objects including antler furnishings,
containers or historical jewelry in
the form of animals. The exhibition
was accompanied by an extensive
educational program for all age
groups.
Kunsthalle Würth, Schwäbisch Hall The “Menagerie – An Animal
Show from the Würth Collection” exhibition in Kunsthalle Würth in
Schwäbisch Hall rounded off a trilogy that invited visitors to wander
through nature in “Forest Fascination”, then showed the diversity of
the human species in “From Head to Toe” before turning its attention
to the human race’s closest relatives, animals. The fascinating aspects
of the animal world were illustrated with various works spanning all
eras of art history. The exhibition started with works by the famous
renaissance painter Lucas Cranach d.J., showed animal sculptures by
Leonhard Kern and presented oil paintings by Giovanni Segantini
and Carl Spitzweg, as well as works by Pablo Picasso, Andy Warhol,
David Hockney and Marc Quinn. The varied exhibition showed the
constantly changing relationship between humans and animals. Paintings, sculptures, drawings, handicrafts, jewelry and furniture created
by more than 100 artists were on display to take visitors on a journey
into a world of bestial surprises.
28
Museum Würth, Künzelsau Art from Austria has always been a
particular focal point of the Würth Collection. These varied, quite
contrary works make up one of the largest private collections of Austrian art outside of Austria. With the “A.E.I.O.U.” exhibition, Museum
Würth in Künzelsau presented a varied selection from this collection
spanning the period from the late 19th century to the present day.
More than 100 paintings, drawings, graphics and sculptures by more
than 70 artists were on display. Starting with Gustav Klimt, the exhibition led visitors to contemporary works by artists like Herbert Brandl,
Xenia Hausner or Markus Redl. The title of the exhibition, “A.E.I.O.U.”
is a reference to the motto used by the Duke of Austria, who later became Emperor, Friedrich III., in the 15th century to adorn his crests,
documents, inventory lists and buildings, the meaning of which has not
been definitively clarified to this day.
New presentation of the Falkenstein Altarpiece The Master of
Messkirch is not only one of the most important artists of pre-Renaissance German painting in Upper Swabia, he is also one of the most
mysterious. Possibly born in about 1490-95, he was most likely active
in the period between 1515 and 1540. In art history terms, the oeuvre
of this artist was obviously influenced by Albrecht Dürer, Hans Baldung
Grien, Hans Schäufelein and Hans von Kulmbach. He is considered
a precise observer of the human physiognomy, an excellent portrayer
of river and mountain landscapes and a true master of color. To mark
the acquisition of the corpus of the Falkenstein Altarpiece, one of
the master’s major works, the Würth Collection is now presenting its
entire stock of 17 panels by him at Johanniterkirche in Schwäbisch
Hall. Two additional panels are on loan from the Stuttgart State
Gallery (Staatsgalerie Stuttgart). The high point of the exhibition is
the reunion of the “Falkenstein Altar Retable”, which the artist created
for Falkenstein Castle (near Messkirch) of the Barons von Zimmern
and which was divided into its separate parts and dispersed in the
19th century. A further accent is provided by the Zimmern Chronicle,
now in the manuscript collection of the Württemberg State Library in
Stuttgart. The Johanniterkirche itself received an award in 2013: the
Baden-Württemberg Chamber of Architects singled the renovated
church out as an exemplary architectural structure.
FULL PRESENTATION
OF THE FALKENSTEIN
ALTARPIECE The Master
of Messkirch’s Falkenstein
Altarpiece was handed over
to the public in a ceremony
held at Johanniterkirche in
Schwäbisch Hall.
29
WALK OF MODERN ART The Würth Collection now enjoys a presence in the
very heart of Salzburg with sculptures by internationally renowned sculptors. The
“Sphaera” sculpture by German sculptor Stephan Balkenhol, displayed on Kapitel
platz square, is more than nine meters high and holds its own as a self-sufficient
work of art.
Walk of Modern Art, Salzburg The Walk of Modern Art, created
in the heart of Salzburg, a World Heritage Site, over the course of ten
years has been entrusted to the Würth Collection. For ten years, the
Salzburg Foundation had invited internationally renowned artists to
visit Salzburg every year and spend some time really engaging with
the city before creating a work of art for public display. The result is
a high-quality collection of sculptures leading to the most beautiful
parts of Salzburg, but also to places that are less obvious or where
you would not expect to find art. The works of art, which are freely
accessible and can be reached on foot, are the creations of Anselm
Kiefer, Mario Merz, Marina Abramović, Markus Lüpertz, James Turrell, Stephan Balkenhol, Anthony Cragg, Christian Boltanski, Jaume
Plensa, Brigitte Kowanz, Manfred Wakolbinger and Erwin Wurm,
and focus on an interpretation of the individually selected locations.
An extension of the Walk of Modern Art can be found in the Würth
Sculpture Garden at Schloss Arenberg.
30
International violin competition Since the early days of the International Violin Competition, Würth has been supporting this event
organized by the Kulturstiftung Hohenlohe cultural foundation by
donating prizes. The competition was held for the 15th time in August
2013 in Schöntal Monastery, Baden Württemberg. More than 50 violinists up to age 21 were invited to show off their musical skills in the
competition.
One of the top prizes awarded as part of the competition is the Reinhold Würth Promotion Prize, established by Adolf Würth GmbH &
Co. KG in 2007 and worth EUR 5,000. In 2013, the prize went to the
young violinist Rennosuke Fukuda from Japan, who won over the jury
with his expressive interpretation and excellent technique. The Reinhold Würth Promotion Prize must be used for specific purposes and
is designed to give young musicians an opportunity to continue with
their training and develop their exceptional talent further over the
next few years.
Würth Prize of Jeunesses Musicales Deutschland Conductor
Bruno Weil is the winner of the EUR 10,000 2013 Würth Prize of
Jeunesses Musicales Deutschland (JMD). The jury spoke of how
Bruno Weil managed to make music tangible as a profound human
statement, as the language of the soul. The specialist in Viennese
classicism and historically informed performances was said to stand
for “high-quality interpretations that remain faithful to the truth and
impact of the music”. The prize was handed over by Harald Unkelbach, Chairman of the Management Board of the Würth Foundation,
and JMD President Daniela Stork. The laudatory speech was held by
former German government minister Theo Waigel. The awards ceremony was held as part of a concert given by the university symphony
orchestra of the University of Music and Performing Arts in Munich,
conducted by the prize-winner.
The Würth Prize of Jeunesses Musicales Deutschland is a coveted
accolade in the German music world. It is awarded to artists, ensembles and projects that bring the values and goals of JMD to life in
an exemplary manner. Since 1991, personalities such as conductor
Gustavo Dudamel, cellist Sol Gabetta, ensembles such as the Federal
Youth Orchestra or projects like the Education Program of the Berlin
Philharmonic Orchestra have received the prize. The prize is donated
by the Würth Foundation.
Würth Literature Prize “Beauty queen Sarah Rotblatt drives up to
a petrol station” (Die Schönheitskönigin Sarah Rotblatt fährt an einer
Tankstelle vor) was the motto of the 24th Würth Literature Prize. Adolf
Würth GmbH & Co. KG has been awarding the literature prize, worth
EUR 7,500, in cooperation with the University of Tübingen every year
since 1996. The award goes to short stories featuring a convincing
and unique use of language.
More than 600 authors had submitted their stories for the 2013 Würth
Literature Prize. Norbert Müller from Berlin took first place with his
story entitled “Zigaretten holen” (Buying cigarettes). The silver award
went to Kai Metzger from Düsseldorf for his text “Morningside Drive”.
The author Christoph Ransmayr set the topic for the literature prize
during his Tübingen poetry professorship in 2012. The professorship
is also a project organized by Adolf Würth GmbH & Co. KG and is
hosted at the German Seminar (Deutsches Seminar) of Tübingen University. Once a year, two authors are invited to hold public lectures and
offer seminars and workshops for students. Over the past few years,
the guest authors included not only Christoph Ransmayr, but also
Raoul Schrott, Jonathan Franzen, Daniel Kehlmann, Juli Zeh, Feridun
Zaimoğlu, Ilija Trojanow, Péter Esterházy, Terézia Mora, Brigitte
Kronauer, Lars Gustafsson, Ruth Klüger, Amos Oz and Herta Müller.
REINHOLD WÜRTH
PROMOTION PRIZE
Rennosuke Fukuda from Japan is
the winner of the 2013 Reinhold
Würth Promotion Prize. Würth
awards this prize as part of the
International Violin Competition.
31
SHARING COMMITMENT
Würth Foundation Set up in 1987 by Reinhold and Carmen Würth,
the Würth Foundation promotes projects in the fields of science and
research, art and culture, and education. The Foundation currently
has total capital of EUR 7.6 million. In addition to its own activities,
the Foundation also supports third-party projects and initiatives –
mainly in the Hohenlohe region where the Group has its head office.
The Foundation’s own activities in 2013 included the music festival
for people with disabilities. The motto of the music festival held in
October was “Live with your heart”, and it featured twelve musical
bands on two stages in Museum Würth in Künzelsau. The special
thing about the festival was that the people playing in the bands all
have disabilities. The idea for the event came from Carmen Würth,
who has been an advocate for people with disabilities for many years.
Major third-party projects that have received regular support in the
post include the Hohenloher Kultursommer (Summer of Arts in Hohenlohe), as well as the international violin competition organized every
other year by Kulturstiftung Hohenlohe (Hohenlohe Cultural Foundation), the Junge Oper Schloss Weikersheim (Young Opera Schloss
Weikersheim) and the work of Historischer Verein WürttembergFranken (Historical Association Württemberg-Franconia).
The Würth Foundation also supports the Freie Schule Anne-Sophie
schools in Künzelsau and Berlin and the Competence Center for
Economic Education. Moreover, it administers the foundation for the
promotion of the Reinhold Würth University of Heilbronn University
in Künzelsau.
32
Hotel Restaurant Anne-Sophie In 1999, Carmen Würth’s aim was
to create an establishment in Künzelsau that would foster the integration and personal development of people with disabilities. The Hotel
Restaurant Anne-Sophie opened its doors in 2003 on her initiative,
featuring a special concept: people with and without disabilities work
together hand in hand. Disabled employees are trained by specialists
so that they can work independently in the kitchen, as wait staff, in
housekeeping or in building services. This makes it easier for them to
participate in social life and allows them to earn a living.
In the spring of 2013, the Hotel Restaurant Anne-Sophie celebrated
its tenth birthday. It currently employs a workforce of 50, around one
third of whom have disabilities. Ever since it was opened, the establishment has made a name for itself as a meeting place for gourmets
and an example of stylish hotel culture, with the warm and friendly
atmosphere as one of its trademarks.
To mark its tenth anniversary, the new main building opened in the
heart of Künzelsau in May 2013. It adds another 18 guest rooms, as
well as a gym and spa area for hotel guests and a conference building to the hotel complex. The new restaurant handi ap. offers guests
ambitious cuisine using high-quality produce. The lindele shop is also
part of the hotel. The Hotel Restaurant Anne-Sophie uses the shop to
sell products made by people with physical or mental disabilities, as
well as people from socially deprived backgrounds. Customers can
choose from a range of 250 gift and gourmet items.
NEW BUILDING FOR HOTEL RESTAURANT
ANNE-SOPHIE The new representative main building of the Hotel Restaurant Anne-Sophie is located
in the heart of Künzelsau’s old town. The extension
has been awarded a four-star rating by the German
Hotel & Catering Association. The hotel now has a
total of 49 guest rooms, 18 of which are located in the
new wing. People with and without disabilities work
here hand in hand.
33
INTERNATIONAL FOLKWANG PRIZE Prof. Dr. h. c. mult. Reinhold Würth (second
from the right) has been awarded the Folkwang Prize in only its second year. The following individuals attended the ceremony to offer their congratulations (from the left):
Dr. Tobia Bezzola, Director of Museum Folkwang, Essen, Dr. E. h. Achim Middelschulte,
Chairman of the Board of Management of the Folkwang Museum Association, and
Prof. Dr. Martin Roth, Director of the Victoria and Albert Museum, London.
Folkwang Prize The Folkwang Prize, endowed with 25,000 euros,
was handed over to Reinhold Würth in Essen. Since 2010, the Folkwang Museum Association has been using the prize as a way of recognizing individuals and institutions who have made a particular contribution to promoting art and making it accessible to broad sections
of the population in the spirit of the museum’s founding father, Karl
Ernst Osthaus (1874 –1921). The jury emphasized Reinhold Würth’s
lifelong passionate commitment to art and cultural education. As a
collector and art lover, they said, his conviction that art would stimulate the working environment of his employees across the globe, serving to motivate them, was his guiding force. His impressive collection
and also the numerous associated galleries set up with a direct link to
administrative buildings is testimony to this.
34
French medals for Würth and Weber France bestowed honours upon R einhold Würth and the Director of the Würth Collection
C. Sylvia Weber with the “Knight of the Legion of Honour” and the
“Order of Chivalry in Art and Literature”. The awards were presented
by Ambassador Maurice Gourdault-Montagne in Kunsthalle Würth
in Schwäbisch Hall. This is France’s way of recognizing the exemplary cross-border commitment to culture and art shown by Reinhold
Würth and C. Sylvia Weber in Germany and France. By way of example, Würth has consistently promoted the work of the Institut français
in Stuttgart and the Centre Culturel Franco-Allemand in Karlsruhe. In
2008, Würth also opened a museum in E rstein, Alsace, in immediate
proximity to Würth France. C . Sylvia Weber has been at the helm of
the Würth museums since 1991 and has been the curator behind numerous exhibitions.
Sports sponsorship The international sports sponsorship activities
of the Würth Group are characterized by continuity and success.
With its commitments in China (national basketball team), the US
(NASCAR racing series) and South America (referee advertising at
the Copa Libertadores), Würth is focusing primarily on growth markets
and is positioning itself in sports that are popular on these markets.
The NASCAR sponsorship in the US, in particular, was crowned with
success in 2013: Sam Hornish Jr. came in second in the Nationwide
Series.
In addition to these sponsorship activities, Würth remains a major
sponsor of European football and winter sports. Würth’s advertising
boards could be seen at a total of 169 European World Cup qualifying matches and in four Bundesliga stadiums. The brand’s presence
on the racing and thermal wear of the German Ski Association (DSV)
also attracts global attention to the brand on the television, the Internet and in newspapers. Brand values like team spirit, momentum and
passion are transported perfectly by the sports sponsorship activities.
Representative offices In Berlin since 2003 and in Brussels since
2005. Würth attaches a great deal of importance to critical dialog
with social groups and institutions. Würth House Berlin and Würth
Office Brussels have established themselves as key dialog forums
for German and international politics. Listening and understanding,
but also articulating and commenting – this is how Würth believes
debate should take place with business and industry, at discussion
rounds, conferences and receptions. Both representative offices also
offer a platform for cultural events in order to transport our understanding of commitment in a hands-on manner. Our aim is to be open
so that others can be open with us.
SPORTS SPONSORSHIP The NASCAR sponsorship was crowned
with success in 2013: Sam Hornish Jr., driver of the Würth racing car,
came in 2nd.
35
SHAPING EDUCATION
Freie Schule Anne-Sophie in Künzelsau and Berlin The inde
pendent school Freie Schule Anne-Sophie was opened in 2006
in Künzelsau as a private all-day school on the initiative of Bettina
Würth. The bilingual sister school in Berlin, which offers classes in
German and English, opened in time for the 2011/12 academic year.
The unique educational concept is the same in both schools: target
and performance-oriented learning in a stimulated environment. “You
can independently achieve what you put your mind to. And where
you can’t, I’ll gladly support and help you”. This is the fundamental
thinking behind day-to-day educational life at both schools.
Freie Schule Anne-Sophie in Künzelsau saw its first class of graduates
obtaining the Abitur, Germany’s university entrance qualification, in
2013. The 16 learning partners obtained an average grade of 2.2
(on a scale of 1 (best) to 6 (worst)). In September 2010, Freie Schule
Anne-Sophie had started with the upper grammar school level, known
as the “College”. The grammar school obtained state recognition as
an alternative school on 1 August 2011 and has had the same rights
and obligations as any state-run grammar school ever since. Learning
partners at Freie Schule Anne-Sophie undergo the same Abitur examinations as pupils attending state schools in Baden-Württemberg.
In Berlin, the first set of learning partners passed their intermediate
secondary graduation certificate. This certificate is a substitute for the
36
“Realschule” (senior secondary school) certificate and assesses the
performance of pupils in Grade 10 of the German school system. The
2014/15 academic year will see learning partners in Berlin enter the
upper grammar school level.
Another highlight in the school calendar of Freie Schule Anne-Sophie
in Künzelsau was its recognition as a MINT-friendly school by the
educational initiative “MINT Zukunft schaffen”, an initiative launched
to promote natural science and engineering subjects in schools. This
award is considered a seal of the teaching quality in the MINT subjects: mathematics, information technology, natural sciences and
technology. “MINT Zukunft schaffen” aims to combat the lack of specialist employees in professions in the fields of natural sciences and
technology. Talent promotion measures and moves to break down
educational barriers are designed to inspire pupils to study MINT
subjects. 600 schools in Germany have already been singled out
as being MINT-friendly. The patron behind the initative is the German
Chancellor, Dr. Angela Merkel.
Freie Schule Anne-Sophie is funded by the Würth Foundation and is
promoted by the Würth Group, in particular by Adolf Würth GmbH &
Co. KG.
FREIE SCHULE ANNE-SOPHIE Designated a
MINT-friendly school, one area that Freie Schule
Anne-Sophie focuses on is natural sciences. In the
chemistry lab, learning partners examine the phenomenon of osmosis together with the head of
secondary levels I and II, Dr. Vito Susca.
37
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Lifelong learning One key aspect of corporate and working culture
at Würth is lifelong learning, both for people just embarking on their
careers and for specialist employees and managers. Würth is currently
training more than 1,300 up-and-coming professionals in Germany,
where there is a long tradition of dual training concepts. These include commercial, logistics and IT training programs, courses at the
Baden-Württemberg Cooperative State University leading to Bachelors’ degrees and technical and catering professions at the German
Group companies.
The learning process does not end when individuals complete their
initial training. Especially given the impact of the constantly changing
demands placed on today’s working world, ongoing training is a key
success factor. Akademie Würth Business School, for example, therefore offers Würth Group employees and interested external parties
academic training programs for working professionals. These include
the Business Administration B.A. in cooperation with Hamburger
Fern-Hochschule (Distance Learning University). Admission is also
open to students without university entry qualifications. The threeand-a-half-year course provides fundamental knowledge of business
administration and leads to the degree of Bachelor of Arts (B.A.). In
the latter part of their studies, students can choose to major in one of
a wide range of topics on offer. Students study using study letters and
e-learning modules. The self-study is supplemented by classroom sessions at Akademie Würth.
An MBA course was designed in collaboration with the University
of Louisville in Kentucky (USA). The one-year course is aimed at high
potentials who have at least three years’ professional experience
and wish to enhance their management expertise. As the MBA is
awarded by the College of Business at the University of Louisville,
half of the course is held on the campus in the USA. The College of
Business is accredited by the American Association to Advance
Collegiate Schools of Business (AACSB).
AKADEMIE WÜRTH
BUSINESS SCHOOL
The MBA class of 2013 celebrates the completion of their
course at the University of
Louisville in the US. The traditional throwing of the Masters’
caps forms a key part of the
graduation ceremony.
38
TRAINING Learning away
from the office desk: team
training sessions are a key
component of the training program at Adolf Würth GmbH
& Co. KG. They allow career
entrants not only to acquire
specialist knowledge, but also
to develop as individuals.
University promotion A separate foundation under the umbrella of
the Würth Foundation has been dedicated to promoting Reinhold
Würth University in Künzelsau since 2005. The campus, where
1,500 students are enrolled for Bachelors’ and Masters’ degrees is
one of three campuses belonging to Hochschule Heilbronn (University of Applied Sciences).
The Würth Group contributed an endowment of EUR 10 million to the
foundation for the promotion of Reinhold Würth University. The broad
range of promotional activities includes investments in additional
equipment for research purposes, start-up financing for courses and
scholarships for students.
Thanks to its activities, the foundation is helping to strengthen Künzelsau
as a university location and boost research and teaching in the region.
Reinhold Würth University celebrated its 25th anniversary in 2013.
As part of the anniversary celebrations, Prof. Dr. h. c. mult. Reinhold
Würth was awarded the title of honorary senator of Hochschule Heilbronn in recognition of his many years of support for the university.
Competence Center for Economic Education The Competence
Center for Economic Education, which forms part of the Würth Foundation, aims to ensure that economic issues are addressed more in
school education and that knowledge of economic processes and
entrepreneurial spirit is improved among pupils and teachers alike.
The center’s main activities include the Würth Education Prize for
forward-looking school projects in the field of economics and the
annual Management Symposium.
Since 2009, the Competence Center for Economic Education has
been offering the Business Practice Program for teachers at general
schools: the further training gives teachers an insight into basic business administration principles and structures that they can then implement at their schools in measures and projects relating to economic
education.
Furthermore, a prize for the ten best pupils studying the elective “business and IT” at secondary technical schools was awarded for the first
time in the summer of 2013.
39
OF THE WÜRTH GROUP
The Würth Group was faced with a continued difficult economic
environment in 2013. Global economic growth only managed to pick
up minimal momentum year-on-year on average. The damper on economic momentum stems largely from the fact that the consequences
of the financial crisis have yet to be fully overcome in many countries
and regions. In the second half of the year, however, the global economy picked up speed. All in all, global gross domestic product increased by just 3.0 percent (2012: + 3.1 percent).
• Global economy recovers in the second half
• Ongoing recession in the euro zone
• Growth slowdown in Germany
In Germany, the largest single market for the Würth Group, the trend
towards slower economic development continued, with gross domestic product up by only 0.4 percent. This means that growth was down
by 0.3 percentage points in a year-on-year comparison (2012: + 0.7
percent). The weak demand from abroad and ongoing uncertainty
regarding economic policy and government debt in key export countries kept a muzzle on growth.
In the trades, the main sales market for the Würth Group, the negative trend that started a year earlier continued. 2013 saw sales at
trades businesses slip by 0.8 percent, after already dropping by 2.0
percent in the previous year. In the metal and electrical industry,
another key sector for the Würth Group, production rose by 0.2 percent (2012: – 0.1 percent). This means that the sector started to move
towards the forecasts for 2013, which assumed a slight increase to
the tune of 0.5 percent.
The German automotive industry stagnated again in 2013. The
number of vehicles produced rose slightly to around 5.5 million passenger cars (2012: 5.4 million). The German mechanical engineering sector, on the other hand, was hit by production losses of 1.5
percent (2012: + 2.0 percent). A drop in exports to Asian growth markets played a key role in this trend. The construction sector showed
SALES
9,699
10,000
8,489
8,816
7,748
7,500
9,985
9,745
8,633
7,522
6,914
6,203
5,000
2,500
2004
40
2005
2006
2007
2008
2009
2010
2011
2012
2013
positive development in 2013, despite the long winter at the start of
the year, with sales up by 3.0 percent in 2013. This means that the
growth rate almost quadrupled as against 2012 (+ 0.8 percent). Construction companies benefitted from considerable investments in residential construction, in particular.
The euro zone has gradually been throwing off the shackles of the
recession since the second half of 2013 thanks to the structural adjustments that have been made. The modest growth at the end of the
year, however, was not quite able to compensate for the renewed
drop in economic output over the year as a whole: gross domestic
product was down by 0.4 percent 2012: – 0.4 percent). Especially in
the southern European countries that were hit particularly hard by the
sovereign debt crisis, the recession continued to linger: in Portugal,
gross domestic product fell by 1.4 percent (2012: – 3.2 percent),
while GDP fell by 1.2 percent in Spain (2012: – 1.4 percent) and
by 2.0 percent in Italy (2012: – 2.1 percent). By contrast, economic
growth in France, Europe’s second largest economy, increased by
0.2 percent as in the previous year (2012: + 0.2 percent). Ireland
was unable to hold its slight upward trend steady: compared with
0.9 percent in 2012, growth in 2013 came in at only 0.1 percent.
Against the backdrop of an uncertain overall fiscal policy environment, growth on the US economy in 2013 was down on the previous year: after GDP rose by 2.2 percent in 2012, economic output
in 2013 came in at only 1.9 percent. Growth slowed slightly in Latin
America as well. The region’s GDP rose by 2.7 percent in 2013 compared with 2.9 percent in 2012. In the markets of China and India,
which are strategically important for the Würth Group, economic
growth was down slightly. Economic output in China grew by 7.7 percent (2012: + 7.8 percent). In India, the pace of growth slowed from
4.5 percent in 2012 to 3.9 percent in 2013.
Falling commodities prices
Prices on the commodity markets dropped considerably in some
cases in 2013. In particular, the commodities that are of considerable
importance to the Würth Group, namely steel, nickel, aluminum and
copper were cheaper in 2013 than they were one year previously. It
was possible to cut purchase prices.
Although steel was trading at a much lower price than a year earlier
in 2013 on average, it was subject to considerable fluctuation. Between the start and the middle of the year, the price fell continually to
a low of USD 100 per metric ton and had then bounced back to USD
295 by the end of the year. On average, steel cost USD 195 per metric ton in 2013.
The prices for the industrial metals nickel, copper and aluminum were
also well down in a year-on-year comparison at the end of 2013. On
average, the price of nickel dropped to USD 15,000 per metric ton
(2012: USD 17,520 per metric ton). The price of copper stood at USD
7,321 per metric ton as against USD 7,949 per metric ton in 2012.
One metric ton of aluminum was trading at an average of USD 1,841
(2012: USD 2,018 per metric ton).
Major price fluctuations affected the cost of a barrel of Brent crude
oil in 2013. The average price per barrel in 2013 was USD 105, also
down on the previous year (2012: USD 111).
The Würth Group streamlined its management structure effective
1 July 2013. Shorter decision-making processes and focused responsibility will give the company more clout. The Board was cut from
seven members to four. Robert Friedmann remains the Chairman of
the Central Managing Board, with Peter Zürn still his deputy. Joachim
Kaltmaier will remain in charge of Finance. The new member of the
Board is Uwe Hohlfeld, who was appointed to assume responsibility
for strategic planning and controlling and has been a management
member of Adolf Würth GmbH & Co. KG since 2003.
• Southern European markets continue to put pressure on
business developments at the Würth Group
• Operating result up to EUR 445 million
• 63,571 employees worldwide
The Würth Group’s sales in fiscal year 2013 were down year-on-year
to EUR 9.75 billion (2012: EUR 9.98 billion), which translates into a
drop of 2.4 percent. If we adjust the figures to reflect the solar activities, which were abandoned in 2012, the decline in sales comes in at
0.1 percent, as the solar sales amounted to around a quarter of a billion euros in 2012.
41
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Sales of the Würth Group
in millions of EUR
Würth Line Germany
Allied Companies Germany
Würth Group Germany
Würth Group International
Würth Group total
2013
1,491
2,912
4,403
5,342
9,745
2012
1,478
2,969
4,447
5,538
9,985
%
+ 0.9
– 1.9
– 1.0
– 3.5
– 2.4
Whereas the companies in Germany saw their adjusted sales rise by
1.6 percent as against 2012, the adjusted sales abroad were down
by 1.4 percent on the prior year. This is due primarily to the ongoing
difficult economic situation on the southern European markets, which
are important for Würth.
At EUR 445 million, the operating result of the global market leader
in selling assembly and fastening materials was up on the prior year
(2012: EUR 415 million). The excellent earnings power of individual
established companies, such as Adolf Würth GmbH & Co. KG and
Würth Finland, made a particular contribution to this operating result,
which was up by 7.2 percent year-on-year.
Despite stagnating sales, the Group invested heavily in the growth of
its various divisions, units and markets. At EUR 433 million, capital expenditures were on a par with the level seen in recent years and are
the basis for the Würth Group’s future growth.
In response to the drop in sales, headcount in the individual divisions
and units was adjusted in the past fiscal year. This resulted in a drop
to 63,571 employees worldwide, with most of the staff cuts being made
abroad, in line with sales development, with a focus on sales staff.
Sales by region
• Germany remains most important single market
• Most pronounced drop in sales in southern Europe
• Focus remains on regional diversification
Varied overall economic conditions resulted in different sales trends
in the individual regions in 2013, with most regions hit by dwindling
sales. Southern Europe was hardest hit with a drop in sales stretching almost into the double digits. On these markets, we are still feel-
42
ing the impact of the economic crises in Spain, Portugal, Italy and
Greece. Nevertheless, our more than 400 companies in more than
80 countries give us the opportunity, thanks to our geographical diversification, to participate in regional growth markets and at least
partly compensate for stagnating/falling sales in individual countries. Depending on the maturity of the individual markets, the strategic approaches to market penetration vary from region to region. In
fledgling markets, the focus is on developing the sales force. The established entities concentrate on refining their sales channels through
a regional approach, customer-specific segments and a policy of
seeking out potential. For seven years, we have also been working
intensively on setting up new sales branches to help broaden our customer base and expand the services we offer. In addition, we are focusing on expanding our e-commerce activities in order to accelerate
our transformation into a multi-channel sales company.
Germany
Sales in millions of EUR
Share %
Employees
Sales representatives
2013
4,403
45.2
19,415
5,467
2012
4,447
44.5
19,605
5,757
%
– 1.0
– 1.0
– 5.0
Germany is the largest and most important individual market for the
Würth Group. 45.2 percent of consolidated sales were generated
on the domestic market. Since the drop in sales in Germany was less
pronounced than abroad, it was actually possible to slightly increase
Germany’s share of total sales. Germany also occupies first place as
regards headcount, with 19,415 employees.
The establishment of Adolf Würth GmbH & Co. KG in 1945 was the
start of a success story, starting in post-war Germany, that continues
to this day. The parent company of the Würth Group makes the biggest contribution to sales and earnings and is also the largest single
entity in the Group with more than 6,000 sales representatives and
in-house staff.
2013 was a challenging year for Adolf Würth GmbH & Co. KG, too.
First of all, the commissioning of the distribution center in May 2013
significantly improved our logistics capabilities. The parent company
also invested considerable amounts in e-commerce to allow it to react
on the market even faster and with greater customer friendliness and
flexibility. Furthermore, 17 new branches were set up. All in all, Adolf
Würth GmbH & Co. KG has more than 400 shops, bringing it even
closer to its customers. This ultimately resulted in new records being set
for sales and the operating result, highlighting the importance of the
Group’s flagship.
Overall, Germany generated an operating result of EUR 226 million
(2012: EUR 210 million), making it the most profitable region.
In addition to Adolf Würth GmbH & Co. KG, other entities in Germany reported successful development in the 2013 fiscal year. One
example is Arnold Umformtechnik GmbH & Co. KG, a leading manufacturer of sophisticated connecting technology for the automotive
segment and other industrial sectors, which achieved above-average
sales growth and set a new record in the process: for the first time,
more than EUR 100 million in sales were achieved in the space of one
fiscal year. The companies in the Würth Elektronik Group also continued on their success path, boosting their earnings considerably.
Although individual companies achieved outstanding performance,
growth in Germany still fell far short of our expectations overall. In the
second half of the year, we saw an increasing number of signs emerge
pointing to a revival in business, which were ultimately also reflected
in sales growth and allow us to be confident as far as this fiscal year
is concerned.
Western Europe
Share %
Employees
2013
1,650
16.9
10,685
5,610
2012
1,735
17.4
10,932
5,890
%
– 4.9
– 2.3
– 4.8
Western Europe is the Group’s second largest sales region after Germany. It was the geographic point of departure for the internationalization of the Würth Group. In 1962, Reinhold Würth set up Würth
Nederland B.V., the first company outside of Germany, laying one of
the foundation stones for the success of the Würth Group.
Growth momentum in this region, which includes companies in countries like France, the UK, the Benelux states and Switzerland, tailed
off considerably compared with the prior year. On aggregate, sales
slid by 4.9 percent (2012: + 4.6 percent). There are a whole number
of reasons behind the unsatisfactory sales situation, but due to the absolute volume of sales, the French companies have a major impact on
the region as a whole, as they generated around 40 percent of total
sales. Growth was also unsatisfactory in the UK, Belgium and Switzerland, where sales figures decreased. Some of the established entities are still in a consolidation phase, and a realignment is required
to reflect the changed market situation. The strategic focus of these
entities is on creating customer segments and thus on potential-based
marketing and distribution.
The Americas
Share %
Employees
2013
1,130
11.6
7,020
3,772
2012
1,131
11.3
7,115
3,916
%
– 0.1
–1.3
–3.7
The US economy continued to show stable development, continuing
on the upward trajectory plotted in recent years unperturbed. Demand among private households rose considerably, helping to revive
the construction sector even further. This allowed our wood companies in the US to achieve satisfactory results, with sales growth almost
in the double digits. It was a different story at the companies in the
Würth Industrial Network (WINWORK®), where sales were down by
3.0 percent. Waning demand for equipment used in the mining industry, for example, had a marked impact on sales. The closure of large
parts of the US public administration to take pressure off the budget
also affected the development of the industrial companies. The measures taken by the US government meant that public-sector orders were
either not granted to industry at all, or were granted subject to delays.
All in all, the US companies achieved sales to the tune of EUR 806
million, up by 0.9 percent. The low growth rate expressed in euros is
mainly due to changes in the exchange rate. Measured in US dollars,
the increase was much higher at 4.3 percent. Due to its huge market
volume, the US remains one of the focal markets for the Würth Group.
We want to continue to exploit this potential in the future by pursuing
sales strategies that are systematically focused on the US market.
The negative impact of exchange rate developments in South America
was even more pronounced than in the US. Whereas sales, in euro
43
THE WÜRTH GROUP AROUND THE WORLD
Countries in which Würth is represented
terms, were down by 3.2 percent, the growth rate after exchange rate
adjustments came in at 8.8 percent. This means that South America is
the fastest growing sub-region in the Würth Group.
Southern Europe
Share %
Employees
2013
916
9.4
8,264
5,963
2012
1,015
10.2
8,847
6,430
%
– 9.8
– 6.6
– 7.3
The economic and business environment in southern Europe remains
unfavorable and is having a marked negative impact on the business
performance of the Würth Group in this region. Sales fell by 9.8 percent. This makes southern Europe the region with the biggest drop in
sales within the Group.
44
The situation at our Italian companies, in particular, had a considerable impact on results in southern Europe, with sales down by almost
EUR 100 million compared with the previous year at these companies. In Spain, on the other hand, the worst would appear to be over
and after five years of declining sales, 2013 saw this market close the
year just ahead of the prior-year value.
The economic forecasts do not show any signs of a turnaround on
the horizon. Italy and Spain are grappling with record unemployment, the brakes have been slammed on private consumption due to
the considerable uncertainty and construction activity remains on the
wane in large parts of southern Europe. We do not expect the economic situation to show any real improvement in 2014, particularly
in Italy. As a result of this, there is a need to continue restructuring the
Würth Group’s Italian entities in 2014 in order to adapt them to the
current sales level.
Scandinavia
Share %
Employees
2013
747
7.7
3,203
1,310
2012
761
7.6
3,268
1,354
%
– 1.8
–2.0
–3.2
In Scandinavia, too, the Würth Group was hit by a drop in sales in
2013, although this was not very severe at 1.8 percent. The Finnish
companies have traditionally been the strongest, with Group companies in Finland growing by 4.0 percent. Despite the poor sales
growth in 2013, Scandinavia remains one of the Würth Group’s
exemplary regions. The operating result showed above-average
growth of 13.8 percent, with returns well above the Group average at
7.3 percent.
Würth Finland is the shining star. With almost four decades of operations behind it, the company impresses with its excellent market penetration and high profitability. The sales branch concept is the decisive success factor here. Würth Finland now has more than 160 sales
branches. This corresponds to almost 10 percent of all the Group’s
sales branches.
sales contribution of around 40 percent, remained on a par with the
prior year with sales growth of 0.2 percent.
The Würth Group has 24 Würth Line companies and 49 Allied Companies in eastern Europe. We continued to forge ahead with the expansion of the sales branch network in 2013. A total of 57 pick-up
shops were added, 13 in the Baltic states alone. Our strategic focus
in this region remains on sales channel segmentation and increasing
productivity.
Asia, Africa, Oceania
Share %
Employees
2013
439
4.5
9,311
3,957
2012
443
4.5
9,513
4,236
%
– 0.9
–2.1
–6.6
Accounting for 4.5 percent of sales, the companies in Asia, Africa and
Oceania currently only play a minor role within the Würth Group. In
principle, however, Asia is considered to be “the” market of the future
in the east, and we were able to achieve adjusted growth to the tune
of 7.3 percent here in 2013.
Alongside the Würth Line’s business with the trades, Würth also has
industrial and trading activities in Scandinavia. There are still companies focusing on the production of fastening technology for wind turbines and offshore steel structures. All in all, sales in these areas slid
by 8.3 percent in 2013. The results for fastening technology for wind
turbines, in particular, fell well short of our expectations.
We believe that China, in particular, offers considerable untapped
market potential. We are represented by a total of 28 entities in China,
which are responsible for one-third of sales in the Asia, Africa, Oceania region.
Eastern Europe
In addition to direct sales serving the trades, we also provide system
solutions for industrial customers in China and have now set up three
production sites. In addition to the manufacture of screws, these production sites also develop formulations for the chemical unit and produce coils for the electronics area.
Share %
Employees
2013
460
4.7
5,673
3,078
2012
453
4.5
5,889
3,207
%
+ 1.5
– 3.7
– 4.0
Sales in eastern Europe improved by 1.5 percent to EUR 460 million.
This growth is attributable primarily to the exceptionally positive developments in the Baltic states. Estonia, Latvia and Lithuania achieved
total growth of 7.4 percent. Poland and the Czech Republic, which
are our strongest markets in eastern Europe in absolute terms, with a
The average growth rate seen at our Chinese companies over the past
ten years is 24.4 percent, well ahead of the growth rate achieved by
the Group as a whole. We want to continue achieving strong growth
on this market in the future.
45
THE OPERATIONAL UNITS
OF THE WÜRTH GROUP
WÜRTH LINE
THE WÜRTH LINE DIVISIONS
METAL
Metal subdivision
This subdivision directly serves customers in the metalworking and metal
processing industries, such as metal and steel fabricators, fitters, machine
and vehicle manufacturers. The Metal subdivision focuses on the provision of anchor and dowel systems, tools and electrical machines as well
as DIN and standard parts for working and processing various metals.
Installations subdivision
This subdivision concentrates on electricians, gas, heating and water
installation firms, plumbers as well as air-conditioning and ventilation
system firms. The products offered here range from rapid assembly
systems, insulating materials for plumbing and cable laying-out systems to installation materials in the electrical area.
Maintenance subdivision
This subdivision addresses an extremely wide range of customers: inhouse repair shops of industrial enterprises, mainly in the chemical,
pharmaceutical and food industry, facility and installation maintenance
of hotels, shopping centers, airports, sewage plants, recycling companies as well as clinics and hospitals. The focal point is a complete
product range for minor repairs and products for servicing, maintenance and care.
AUTO
Car subdivision
Our customers are car garages, vehicle fleets, automotive refurbishers and car dealers. They include authorized dealerships of car manufacturers and independent workshops as well as special shops and
service providers. The products sold in this customer segment range
from consumables for repairs to chemical-technical products for maintenance, servicing and bodywork, and tools and pneumatic and electrical machines.
46
Cargo subdivision
The customers of the Cargo subdivision are authorized dealers and
independent workshops, freight forwarders and transportation companies, public-sector, municipal and waste disposal companies, as
well as agricultural technology businesses. We mainly sell fastening,
assembly and cleaning products required especially for the maintenance, repair and servicing of commercial vehicles, as well as hand
tools and machinery, in these segments.
WOOD
The Wood Division serves customers in the entire woodworking and
wood processing trade, typically joiners/carpenters and window makers (wood and vinyl). The product spectrum covers furniture fittings,
the entire range of fastening materials and sealing technology as well
as hand tools, machines, abrasives and chemical-technical products.
INDUSTRY
The entities of the Industry Division are specialized companies with a
complete range of assembly and connecting materials for industrial
production, as well as maintenance and repair. In addition to the comprehensive standard range offered by these companies, their strength
lies in customized logistics concepts for supply and service.
CONSTRUCTION
The Construction Division encompasses all sales units responsible for
serving customers in the building and civil engineering industry and
finishing trades. Marketing activity focuses on construction companies, roofers, plasterers, stucco masons, dry construction firms and direct supplies to building sites. Customized logistics solutions are also
provided, such as material stores filled with products directly on the
building site.
ALLIED COMPANIES
THE UNITS OF THE ALLIED COMPANIES
ELECTRICAL WHOLESALE
The companies in this unit specialize in trade with electrical installation
materials, installation systems, communication technology, cables and
lines, tools, data and network technology, lighting and illumination,
household appliances and a wide range of multimedia products, as
well as with electric domestic heating technology and regenerative
power generation.
TRADE
The companies belonging to this unit sell assembly and fastening materials, gardening equipment, electrical tools and furniture fittings,
mainly to specialist dealers, DIY and hardware stores and discounters.
ELECTRONICS
The Würth Elektronik Group manufactures and sells electronic and
electro-mechanical components, printed circuit boards and intelligent
systems.
PRODUCTION
This unit comprises the manufacturing companies of the Würth Group.
The product portfolio ranges from connecting elements for wood
and metal applications as well as for the automobile and electrical
industry, to punch and press fasteners, stamped and bent parts, right
through to dowels, iron and furniture fittings, and tools.
TOOLS
The majority of the Würth tools companies are located in central Europe but are now also represented by subsidiaries in the key global
industrial markets. With more than 60,000 products covering metal
cutting, clamping, measuring, hand tools, works equipment, industrial
safety and machines, these companies not only offer a broad portfolio, but also outstanding technical expertise and high-quality consulting services in the individual application areas.
SCREWS AND STANDARD PARTS
These companies are product specialists with concepts for supplying
industry. The unit’s main business activity is the sale of DIN and standard parts. Most of the companies specialize in the sale of stainless
steel parts.
FINANCIAL SERVICES
The companies in this unit offer products and services in the financial
services sector both within the Würth Group and for external customers.
DIVERSIFICATION
This category includes companies that operate primarily in business
segments other than those relating to Würth’s actual business. They include hotels, catering businesses and logistics service providers.
RECA GROUP
The RECA Group companies supply assembly and fastening materials
direct to industrial, metal and car business customers as well as to customers of the Cargo subdivision. Specialists in professional clothing,
advertising materials and vehicle outfitting complement and add to
the RECA Group.
47
THE DIVISIONS
METAL
THE BUSINESS MODEL OF THE WÜRTH LINE COMPANIES IS
BASED ON INDUSTRY-SPECIFIC MARKETING AIMED AT THE
TARGET GROUPS IN THE TRADES AND INDUSTRY.
AUTO
WOOD
The industry-specific focus within Würth Line is ensured by the strategic work of the Metal,
Auto, Wood, Industry and Construction Divisions in the areas of product range, consulting, pricing, systems, and by coordinated customer support via sales staff, telephone sales,
sales branches and e-commerce. With its broad portfolio comprising products, systems
and services, Würth is the right partner for procurement, storage and requirement-driven
delivery of C-parts and consumables.
In the Metal Division, a product range strategy tailored precisely to the market has proven
to be the key to success. In the future, the division will increasingly focus on managing
products, systems and customers.
The strategic focus of the Auto Division is on expanding the Cargo subdivision internationally through the establishment of additional sales organizations and through specialization of the product range and sales staff. A further strategic cornerstone in the Auto
Division is rolling out the service acceptance concept, which primarily helps independent
workshops successfully sell services based on Würth products.
INDUSTRY
Another focal point of the Wood Division is on expanding sales of fittings and enhancing
planning aids and online ordering services to enable customers to plan furniture and directly
order furniture elements and assembly items in an efficient and effective manner.
In the Industry Division, the innovative further development of procurement and logistics
systems, including the intelligent iBin® system or the ORSY®mat dispensing system, is
increasing the role of systems and full automation in stocking and replenishing Würth
products for manufacturing customers. The strategic focus remains personal customer
service on location thanks to a global network and, as a result, the same high standards
of quality, products and processes across the globe.
CONSTRUCTION
48
In Europe, refurbishment and renovation offer considerable growth potential for the
Construction Division. In particular, energy-efficient and sustainable construction and
renovation are rapidly gaining significance. For applications in these areas, Würth offers
a steadily growing selection of products that are labeled according to the corresponding
requirements.
SHARE OF THE DIVISIONS IN TOTAL SALES
AUTO
WOOD
14.6%
10.0 %
INDUSTRY
METAL
16.4%
8.8%
CONSTRUCTION
6.2%
SALES BY DIVISION
in millions of EUR
2000
1800
1,600
1600
1,452
1400
1,317
1,200
1200
1,172
1000
800
800
600
400
400
853
506
473
1,305
895
1,638
1,658
1,603
METAL
1,413
1,451
1,421
AUTO
932
966
869
971
858
WOOD
INDUSTRY
586
598
601
CONSTRUCTION
2011
2012
2013
774
637
526
200
0
2009
2010
SALES REPRESENTATIVES BY DIVISION
11000
10,000
10000
9,592
10,183
9000
8000
7,500
7,581
8,019
10,856
8,487
10,329
7,877
7000
9,628
AUTO
7,435
METAL
WOOD
CONSTRUCTION
6000
5,000
5000
4000
3000
2,500
2000
1000
0
3,330
3,439
3,536
2,391
2,535
2,746
3,200
2,621
3,031
2,458
524
587
687
712
735
2009
2010
2011
2012
2013
INDUSTRY
49
UNIT
WITH THE CONSTRUCTION OF A NEW CENTRAL
WAREHOUSE, THE UNIT IS LAYING THE FOUNDATION STONE FOR FURTHER GROWTH. ACTIVITIES IN 2014 WILL FOCUS ON THE GREATER USE
OF E-COMMERCE AND THE ESTABLISHMENT OF
THE RENEWABLE ENERGIES AREA AS A CENTRAL
COMPETENCY.
With sales down by 1.2 percent to EUR 976 million, the Electrical
Wholesale unit was unable to continue the successful trend started
in fiscal year 2012 but was nonetheless able to expand its position
on key markets and achieve acceptance development. In Germany,
the ongoing decline in the photovoltaic business and the multimedia
slump caused by positive one-off effects in 2012 (move from analog
to digital) shaved 1.0 percent off sales.
In order to boost productivity and lay the foundation for increasing
market share, UNI ELEKTRO Fachgroßhandel GmbH & Co. KG
started to build a new central warehouse in Eschborn. The new logistics building, as well as alterations to existing buildings, is one of the
SHARE IN TOTAL SALES
ELECTRICAL WHOLESALE UNIT
890
957
988
EMPLOYEES
976
3,000
789
2,314
750
2,250
500
1,500
250
750
2009
50
The companies in the Electrical Wholesale unit are confident in their
outlook for 2014. One reason for this confidence is the establishment
of the renewable energies area as a central competency. All companies are also stepping up their investments in IT to exploit the new
opportunities offered by e-commerce. The company in Austria is
already generating 20 percent of its sales via the online shop.
SALES
in millions of EUR
1,000
10.0%
largest single investments made on the German electrical wholesale
market, at just shy of EUR 40 million. In central and eastern Europe,
the companies also reported a slight drop in sales of 1.5 percent on the
whole. The extraordinary growth in the Baltic states was unable to compensate for the difficult market situation, particularly in Poland, in full.
2010
2011
2012
2013
2009
2,421
2010
2,614
2011
2,767
2012
2,648
2013
TRADE
UNIT
INTENSE PRICE WARS AND A LONG WINTER
HAD A NEGATIVE IMPACT ON STATIONARY
SALES IN PARTICULAR. A FOCUS ON CORE
RANGES, THE PLACEMENT OF NEW AND INNOVATIVE PRODUCTS AND THE FURTHER EXPANSION OF E-COMMERCE ARE DESIGNED TO
COMBAT THE FORECAST OF A VOLATILE SECTOR
SITUATION.
2013 was characterized by intense price wars and dwindling sales in
the entire sector. The first quarter was sluggish as a result of the long
winter, although sales continued to pick up in the second half of the
year. All in all, the unit achieved sales of EUR 872 million, 2.7 percent
more than in the year before.
The stationary sales area (DIY superstores, discounters and consumer
markets) was hit by what were, in some cases, drastic slumps in sales,
losing sales shares to Internet dealers, whose sales increased considerably in 2013. The Internet is also creating greater transparency with regard to quality and prices. Experts believe that major changes lie on the
horizon over the next few years, for dealers and manufacturers alike.
TRADE UNIT
8.9%
The unit is also focusing on its core ranges, as well as different ways of
targeting different target groups, like stationary sales and online traders.
As well as launching innovative new products in 2014 (cordless screwdriver with sensor brackets, revised range of garden shears, relaunch
of the stainless steel range), the unit also plans to set up new distribution channels, and expand its existing channels, in 2014. The emphasis will be on supporting the e-commerce activities of the various
traders given that the trend towards online sales is likely to become
more pronounced. The unit will also be further exploiting the potential
offered by the various procurement associations by means of country-specific program expansions.
SALES
TRADE UNIT in millions of EUR
EMPLOYEES
TRADE UNIT
1,000
3,000
817
750
678
849
872
728
2,597
1,500
250
750
2010
2,956
3,117
2,939
2,250
500
2009
2,784
2011
2012
2013
2009
2010
2011
2012
2013
51
PRODUCTION
UNIT
SUBSTANTIAL SALES GROWTH RESULTS IN MORE
EMPLOYEES. ACQUISITIONS ALSO HAVE AN
IMPACT ON DEVELOPMENTS. INVESTMENTS
IN CORE COMPETENCIES AND GROWTH
POTENTIAL, AS WELL AS INCREASED EFFICIENCY
IN VALUE-ADDING PROCESSES WILL PROVIDE
IMPETUS FOR 2014.
The companies in the Production unit benefited from the ongoing positive developments among its customers in the automotive, mechanical
engineering and electronics industries in 2013. There was a positive
effect due to the expansion of existing markets and the development
of new ones, plus measures designed to increase gross profit and
productivity and cut costs. At EUR 656 million, sales were up by 11.0
percent on the prior year. The unit expanded further with the two acquired companies Chemofast Anchoring GmbH, Germany, and Kemacos Full Filling Service GmbH, Austria. Organic growth came in at
6.4 percent in 2013. Business in fittings was unable to escape developments on the global furniture market and reported sales on a par
with the prior-year level. On the procurement side of things, the price
level for production materials was stable. In the service area (electro
PRODUCTION UNIT
6.7%
In 2014, the unit aims to use its high quality, the huge customer benefit
that its products offer and product innovations to break on to new
markets and generate further sales growth. More sales representatives will also be recruited to focus on application advice, system
solutions and processing technology. The unit’s competitive position
will be strengthened in the long term thanks to the optimization of
production processes and productivity increases.
SALES
PRODUCTION UNIT in millions of EUR
EMPLOYEES
PRODUCTION UNIT
800
6,000
5,104
656
591
600
495
4,500
534
4,439
4,636
4,673
2011
2012
3,839
414
400
3,000
200
1,500
2009
52
plating, hardening), suppliers demanded price increases due to higher
energy costs. Innovation was promoted further as a core competency
of the Production unit. Development and project work for system solutions (e.g. timber engineering and roof and facade construction) and
processing technology were stepped up, in particular.
2010
2011
2012
2013
2009
2010
2013
ELECTRONICS
UNIT
THE WÜRTH ELEKTRONIK GROUP TACKLED THE
CHALLENGING MARKET ENVIRONMENT IN 2013
BY BOOSTING PRODUCTIVITY AND DEVELOPING
NEW PRODUCTS. INVESTMENTS IN RESEARCH
AND DEVELOPMENT ARE LAYING THE FOUNDATION STONE FOR FURTHER GROWTH.
The electronic and electro-mechanical components area is the market
leader and is now represented in 50 countries via direct selling and
distribution partners. The development of the power inductor series
used in mobile end devices provided new impetus. The companies that
produce printed circuit boards now range among Europe’s largest. In
particular, the Starrflex (rigid-flex) technology, a combination of flexible
and rigid printed circuit boards that can help save space in difficult
room designs, and the WEdirekt Internet shop, reported huge growth
in sales.
The very positive development in the intelligent systems area called
for investments in a new production and administration building. In
addition to the new iBin (cooperation with Würth Industrie) and touch
screen panel, the innovative SKEDD® product, direct plug-in connection technology for printed circuit boards, offers massive potential and
ELECTRONICS UNIT
5.2%
resulted in the creation of the SKEDD® profit center. Substantial business areas of Würth Solar were bought over by the BayWa Group. In
the future, only the customer service and services areas will operate
within the Würth Group under the name E 3 Energie Effizienz Experten
GmbH. The Würth Elektronik Group enjoys an excellent position for
2014, with forecasts pointing towards further profitable growth in the
core business area.
This year, the focus will remain on research and development. By way
of example, the electronic and electro-mechanical components area
opened a Design and Application Center for around 80 engineers
and technicians. In the printed circuit board area, the objectives include further development to help transform this area from a contract
manufacturer into a system provider, as well as investments in automation and delivery speed.
SALES
ELECTRONICS UNIT in millions of EUR
EMPLOYEES
ELECTRONICS UNIT
800
8,000
712
6,499
572
600
400
691
504
6,000
5,801
6,255
6,219
6,286
2011
2012
2013
4,000
351
2,000
200
2009
2010
2011
2012
2013
2009
2010
53
RECA GROUP
UNIT
A FOCUS ON ATTRACTING NEW CUSTOMERS,
EXTENDING AND EXPANDING CUSTOMER CONTACT POINTS AND TRANSFORMING THE DISTRIBUTION STRUCTURE TO ESTABLISH MULTI-CHANNEL DISTRIBUTION WILL PROVIDE THE BASIS FOR
POSITIVE BUSINESS DEVELOPMENT.
The market environment of the RECA Group is characterized by intense competition and is fiercely contested. Market shares are still low.
Sales growth slowed against the backdrop of the ongoing tense economic situation in Europe, particularly in Spain, Italy, the Netherlands
and Turkey. The unit’s sales, for example, lagged slightly behind the
prior year at EUR 473 million.
A focus on attracting new customers and expanding customer contact
points will help support the positive development of the RECA Group.
The implementation of the multi-channel distribution approach will
allow customers to receive support that is even more tailored to their
needs. The distribution tools were optimized further. Sales staff were
RECA GROUP UNIT
4.9 %
The e-business area will have a real impact on the future development
of the unit. In addition to forging ahead with electronic marketing efforts, there are plans to harmonize infrastructure and bundle capacities in order to make even more use of synergy effects in 2014. By way
of example, marketing efforts will be stepped up via various distribution channels and customer contact points. Depending on the financial
development of the RECA Group companies, the sales force will be increased moderately. There are also plans to tap into new markets via
cooperation partners.
SALES
RECA GROUP UNIT in millions of EUR
EMPLOYEES
RECA GROUP UNIT
600
4,000
483
450
399
483
3,341
473
428
2,000
150
1,000
2010
3,547
3,769
3,562
3,461
2012
2013
3,000
300
2009
54
provided with new resources such as iPads, for example, shortening
the ordering process considerably.
2011
2012
2013
2009
2010
2011
TOOLS
UNIT
SUBDUED DEMAND FOR CAPITAL GOODS
SLAMS THE BRAKES ON SALES DEVELOPMENT
IN THE TOOLS UNIT. HAHN+KOLB WERKZEUGE
GMBH MOVES INTO A NEW, STATE-OF-THEART LOGISTICS CENTER WITH 540,000 BIN
LOCATIONS.
After 2012, the market environment of the Tools unit was once again
characterized by the fall in demand for capital goods and the strained
economic situation in 2013. Productivity improvements in many areas
and the further professionalization of the sales force were unable to
compensate for this negative effect, with sales dropping by 3.7 percent.
The e-commerce share of sales again rose. HAHN+KOLB Werkzeuge
GmbH worked on making its range of products and services in the online shop more professional, enabling its customers to easily place orders anytime, anywhere via smart phone or tablet PC. The oil and gas
industry, as well as the aerospace sector, are showing positive development in line with our expectations. We believe that these areas offer
significant growth potential for the next few years.
TOOLS UNIT
The Tools unit aims to return to the growth path in 2014. This will be
based on the impressive product range, a focus on product areas that
customers can use to add value, and the investments already made in
sales structures.
SALES
TOOLS UNIT in millions of EUR
400
3.5%
One highlight was the relocation of HAHN+KOLB Werkzeuge GmbH
to its new headquarters in Ludwigsburg in September 2013. The new
site offers 48,000 square meters of space for an innovative distribution center and a modern logistics center with a fully automated picking system and 540,000 storage bins. Innovative pick-by-light displays
support order pickers with global dispatch.
300
352
EMPLOYEES
TOOLS UNIT
355
2,000
342
291
1,500
259
200
1,000
100
500
2009
2010
2011
2012
2013
1,343
1,370
2009
2010
1,491
2011
1,573
1,540
2012
2013
55
UNIT
THE HYDRAULICS MARKET SHOWED POSITIVE
DEVELOPMENT, WITH ONGOING DEMAND FOR
HIGH-QUALITY HYDRAULIC COMPONENTS AND
HOSES. AT THE SAME TIME, SALES IN THE STAINLESS STEEL SEGMENT ARE DOWN DUE TO THE
LOWER DEMAND FOR SOLAR FIXING EQUIPMENT
AND A GENERALLY DIFFICULT MARKET ENVIRONMENT.
The unit’s stainless steel business was faced with difficult market conditions due to the low price of nickel and an aggressive price war.
The demand for solar fixing equipment continued to fall dramatically
as state subsidies were reduced or scrapped completely in many
countries. After a difficult first half of the year, the hydraulics market
achieved stable single-digit growth towards the end of 2013.
The product innovations of INDUNORM Hydraulik GmbH and HSR
GmbH Hochdruck Schlauch + Rohr Verbindungen have been very
well received on the market and had a positive impact on the annual
result. These include the new super power hoses (high-quality hydraulic
hoses with better product features than standard hoses) or the joint-fit
quality system, a safety system that allows the pressure pulse tests that
have to be performed in accordance with the applicable standards
SCREWS AND STANDARD PARTS UNIT
2.5%
In 2014, the unit expects to see growth in the major economic regions
based on the economic forecasts. The stainless steel companies aim to
expand their range in the fields of metal dowels, adhesive technology
and height-adjustable elements in order to tap into additional sales potential. Moves to step up cooperation between the individual stainless
steel companies are also designed to give rise to growth-promoting
synergies. The hydraulic companies will be focusing on expanding
their group of system customers further, among other things using the
joint-fit quality system and the super power hoses.
SALES
in millions of EUR
EMPLOYEES
400
1,200
281
300
200
1,057
1,116
1,110
2011
2012
1,066
910
265
235
243
900
600
169
100
300
2009
56
to be conducted in a verifiable manner. Due to the slump in stainless
steel sales, the sales achieved by the unit as a whole lagged behind
the prior year at EUR 243 million.
2010
2011
2012
2013
2009
2010
2013
FINANCIAL SERVICES
UNIT
THE SALES ACHIEVED BY THE WÜRTH GROUP’S
FINANCIAL SERVICES PROVIDERS ARE SHOWING
SUSTAINABLE GROWTH. THE MOOD ON THE
FINANCIAL MARKETS IS POSITIVE AS A RESULT
OF THE ONGOING INTEREST RATE CUTS.
The results of the Würth Group’s financial services companies developed satisfactorily on the whole last year. The result achieved by
Internationales Bankhaus Bodensee AG private bank, however, was
down on the record value seen in 2012. Although the investment volume and returns were up considerably on the prior year, the result
was hit by specific allowances in the lending business.
Waldenburger Versicherung AG achieved a significant increase in
premium volumes in a fiercely contested market environment in 2013.
Waldenburger Versicherung AG has successfully focused its organization on the insurance broker distribution channel with corresponding
products and services. It has a streamlined structure and is characterized by fast processes and quick decision-making. Nevertheless,
FINANCIAL SERVICES UNIT
1.1%
it did not escape the natural catastrophic damage caused by the
floods and storms unscathed. Würth Versicherungsdienst GmbH
& Co. KG focuses on car fleet insurance and claims processing for
the entire Würth Group. The non-life segment was again the growth
driver at insurance broker and financial services provider Würth
Financial Services AG. Würth operates with companies specializing
in leases in three countries. The leasing business showed extremely
positive development. All companies made a profit.
The moderately positive economic signals from the euro zone mean
that the companies in the Financial Services unit are optimistic with
regards 2014. This will be supported by the solid position that the
individual companies enjoy on the market.
SALES
FINANCIAL SERVICES UNIT in million of EUR
EMPLOYEES
FINANCIAL SERVICES UNIT
120
400
104
109
85
90
71
339
300
71
60
200
30
100
2009
2010
2011
2012
2013
262
2009
281
2010
353
300
2011
2012
2013
57
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Results of operations, net assets and
financial position
results. Sales in this region slid by 9.8 percent, with a correspondingly
negative effect on earnings. Although there will be further need for
restructuring in this region in 2014, we expect sales and earnings development to largely stabilize.
• Operating result of EUR 445 million up considerably
year-on-year
• Cash flow at a high level
• High delivery service level maintained at 98 percent
Our German entities also increased their operating result year on year.
With an operating result of EUR 226 million, they were 7.6 percent
up on the 2012 figure, putting them ahead of the 2008 pre-crisis
level again for the first time.
Last year, the Würth Group achieved an operating result of EUR 445
million, an improvement on the prior year level (2012: EUR 415 million). Given the decline in sales, this is a satisfactory result for us. The
return on sales therefore increased to 4.6 percent. We have calculated the operating result as earnings before taxes, impairment of
goodwill and financial assets, and changes recognized in profit or
loss of non-controlling interests disclosed as liabilities.
Out of the German entities, Adolf Würth GmbH & Co. KG makes by
far the biggest contribution to the result. At EUR 120 million, the employees of the parent company achieved the highest operating result
in the company’s history. But entities from the Trade and Electronic
unit, for example, also made a contribution, thanks to their positive
development, to the improvement in the return of the German entities
to 5.1 percent (2012: 4.7 percent).
The companies outside of Germany boosted their result by 6.8 percent to EUR 219 million. This represents 49.2 percent of the Group’s
overall result (2012: 49.4 percent). Despite this increased result, the
companies in southern Europe put pressure on the Würth Group’s
However, impairment losses that we had to record in the business with
fittings, wind power and electrical wholesale, as well as regarding
PRE-TAX OPERATING RESULT AND RETURN ON SALES
WÜRTH GROUP
640
600
545
515
450
455
395
385
395
445
415
10.0
300
6.4
6.6
6.7
235
7.5
6.2
150
3.1
2004
58
2005
2006
2007
2008
2009
4.5
2010
4.1
2011
4.2
2012
4.6
2013
5.0
trade in stainless steel products, had a negative effect. In these areas,
the result fell short of our expectations. In order to increase profitability, appropriate measures were introduced at the entities affected.
The cost of materials fell to a greater extent than sales did, bringing
the ratio of cost of materials to sales down to 47.7 percent (2012:
48.3 percent). This is mainly due to the abandonment of the Group’s
solar activities, which generated low margins compared with its core
business. The drop in some commodities prices in the Würth Group’s
main material categories also had a positive impact.
The Würth Group had 63,571 employees at the end of December
2013. This represents a decrease of 2.5 percent. This fall was due to
adjustments to the workforce in the entire Würth Group in order to
adapt headcount to reflect the decline in sales. Face-to-face contact
between individuals is vital to our business and is also our strength in
direct selling. The sales force is supported by our highly effective inhouse staff, which provide the necessary support for the specific sales
strategy. As larger customers start to account for a larger proportion
of sales, this need for support increases. Together with the expansion
of our branch network, this is the reason why the number of in-house
staff has remained stable. At 28.1 percent, the ratio of personnel expenses to sales was up slightly in comparison to the prior year (2012:
27.6 percent).
Amortization and depreciation in 2013 was down by 3.4 percent
year-on-year to EUR 303 million (2012: EUR 314 million), primarily
because the impairment losses recognized were lower than a year
ago, mainly for entities responsible for production, trading in stainless
steel products, wind power and electrical wholesale. The remaining
depreciation and amortization remained virtually constant.
At 2.9 percent, the drop in other operating expenses was consistent
with the drop in sales.
The net interest cost was up in a year-on-year comparison. One of the
reasons for this lies in the increase in financial liabilities. May 2013
saw the Würth Group issue a bond worth EUR 500 million, only part
of which was used to finance bonds that had reached maturity. The
increase in financial liabilities is also due to the market valuation of
the interest rate derivatives taken out in connection with the bond. It is
the Würth Group’s strategy to always have sufficient liquidity, keeping its reliance on banks as low as possible.
The tax rate decreased in the fiscal year 2013 to 25.2 percent (2012:
27.9 percent). This is largely due to restructuring. For a detailed analysis, we refer to the consolidated financial statements: G. Notes to the
consolidated income statement, [8] “Income taxes”.
At EUR 309 million, the Würth Group’s net income for the year is up
considerably on the prior year (2012: EUR 279 million). Although
our sales slid by 2.4 percent, we managed to boost our net income
for the year by EUR 30 million, namely due to the improvement in the
ratio of cost of materials to sales, lower depreciation and amortization and the fact that other operating expenses fell slightly in relation
to sales.
Although the sales and operating result targets could not be reached,
the Central Managing Board is satisfied with the results achieved in
fiscal year 2013 within the context of the economic development. The
main control parameters, such as return on operating result, gross
profit, staff turnover, stock turnover and collection days, are at an acceptable level and almost all of them have improved compared with
the previous year.
Capital expenditures and cash flow
Over the past ten years, the Group has invested well in excess of EUR
3.5 billion in property, plant and equipment, financial assets and intangible assets. In the last fiscal year alone, the Group invested EUR
433 million (2012: EUR 465 million). The focus of these investments
was on expanding warehouse capacity for our sales companies, as
well as on production buildings and technical equipment and machinery for our manufacturing companies. For example, Adolf Würth
GmbH & Co. KG opened its new distribution center at its headquarters in Künzelsau in May 2013. The additional capacity of 60,000
order items a day allows the company to react especially quickly to
customer wishes. The new building, which features storage space of
17,000 square meters, features a route linking it to the existing distribution center for transportation purposes. This allows a total of
40,000 orders to be picked per day. A total of EUR 77 million was
invested in this project over a period of several years. We had already moved into a new office building in Rorschach, Switzerland,
in April 2013. In the fall of 2013, Würth Russia opened the Würth
Group’s first logistics complex on Russian territory. It consists of a
three-story building covering a total area of 9,100 square meters,
three areas for goods storage and ten loading and unloading areas.
The facility can store a total of 12,500 pallets. The total investment
59
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT INVESTMENTS
455
450
300
263
CASH FLOW FROM OPERATING ACTIVITIES
465
800
433
283
599
2012
2013
216
250
2010
618
500
2011
2012
2013
volume comes in at around EUR 14 million. In addition to the logistics complex, there are also plans to build a new office building. The
company purchased a plot of land in Taiwan in order to secure future
expansion opportunities. The Allied Companies are also expanding
their storage and production space. The production building of our
Dutch company Diffutherm B.V., for example, is nearing completion,
and Arnold Umformtechnik GmbH & Co. KG in Ernsbach, Germany,
launched the large-scale series production of thread-forming screws
for metal and plastics, which are used primarily in the automotive
industry, in the summer of 2013 on a site covering around 7,000
square meters. AP Winner (Changzhou) Chemical Technology Co.,
Ltd. opened a new production site in Changzhou, China. The company bottles chemical products for the automotive aftermarket. A
total of just under EUR 20 million was invested in this project over a
period of several years. HAHN+KOLB Werkzeuge GmbH, a com-
60
750
540
150
2009
2009
2010
2011
pany with a long tradition behind it, opened its new headquarters in
Ludwigsburg, Germany, last September. The new site offers 48,000
square meters of space for an innovative distribution center and a
modern logistics center with a fully automated picking system and
540,000 storage bins.
In addition to investments in production and storage space, we have
also, as in past years, invested in our ORSY® storage management
system, which offers our customers storage and provision of various
consumables and supplies in line with their needs. Above and beyond this, the Würth Group’s sales branch network was further extended. Around 90 new branches were opened worldwide. In order
to forge ahead with our transformation into a multi-channel sales organization, EUR 60 million was invested in IT systems.
Overall EUR 201 million, just under half of the investment volume, was
attributable to Germany, reflecting to the continued high significance
of the home market for the Würth Group.
In 2014, we plan to keep our investments on a similar scale to 2013.
Our investment obligations on the cut-off date for the annual financial
statements come in at EUR 14.5 million.
Thanks to our moves to optimize our investment controlling processes
using sophisticated recording and analysis tools in recent years, the
Central Managing Board was always in a position to react quickly
to changes in the overall environment. This is another reason why we
once again met our objective of financing investments from our cash
flow from operating activities in full in 2013. Our cash flow from operating activities came in at EUR 599 million (2012: EUR 618 million).
We consider this level of cash flow from operating activities to be
appropriate for us. The ratio of capital expenditures on property,
plant and equipment, financial investments and intangible assets to
cash flow from operating activities was 72.3 percent and was therefore down on the prior-year level (2012: 75.2 percent).
Economic growth will give rise to increased production capacity utilization levels and higher demand for commodities. Both have a direct
impact on future negotiations with suppliers. Consequently, purchasing expects these negotiations to prove more difficult in 2014. The
Group’s purchases will be persistent in their response to possible price
demands in order to achieve the best possible prices. What is more,
the inventories of the individual Würth Group companies must be kept
as flexible as possible in order to ensure that they can be adapted to
suit the prevailing sales and market situation.
Inventories and receivables
Inventories and receivables are a focal point of Würth as a company
that largely operates in the trade sector. Both of these items allow liquidity and the amount of capital tied up within the Group to be managed at relatively short notice. The key is always to strike the right
balance between ensuring high levels of customer satisfaction on the
one hand – by providing an optimum delivery service and adequate
payment terms – and optimizing liquidity and minimizing default
rates on the other. All in all, the drop in sales in fiscal year 2013 resulted in a drop in receivables. Inventories increased slightly.
This global “wait-and-see” attitude was something that purchasing was
able to benefit from. A downward trend in the prices of some commodities, a relatively strong euro and only moderate capacity utilization levels at suppliers worldwide due to the economic situation gave
purchasing staff at the Würth Group good arguments for price negotiations. The systematic use of the opportunities that arose allowed
purchasing to achieve corresponding price cuts on the procurement
markets, which ultimately had a positive impact on competitiveness
and earnings.
For years, sophisticated controlling systems, which enable rapid responses in the event of any indications of negative developments,
and optimum collaboration between sales and accounts receivable
management have enabled the Würth Group to achieve a low level
of receivables in relation to sales. The corresponding key figure, collection days (based on a 12-month calculation), increased slightly in
comparison to the prior year to 52.7 days (2012: 52.3). In view of
the difficult economic conditions, particularly in Europe, we rate this
only slight deterioration in the key figure as positive. This applies all
the more so given that the entities outside of Germany were able to
keep the number of collection days virtually at the prior-year level.
The German companies traditionally report a lower level. Following
42.2 collection days at the end of 2012, they achieved a figure of
43.1 days, slightly up on the prior-year level, also due to longer payment terms for a larger number of customers. All in all, receivables
fell, in line with the decline in sales, by 1.9 percent to EUR 1,210 million (2012: EUR 1,233 million).
Looking ahead to 2014, economic experts predict slight economic
growth worldwide, with most economic indicators also pointing towards an upswing. If these positive forecasts materialize, this will ramp
up the pressure on purchasing at the Würth Group again in 2014.
We will continue to optimize accounts receivable by means of effective cooperation between sales and accounts receivable management, as well as through refinements to the analytic tools. We see the
payment patterns of debtor payments in southern Europe, China and
Purchasing
At the end of 2012, we had forecasted substantial growth for fiscal
year 2013, which failed to materialize. This gave rise to considerable
uncertainty and a tense “wait-and-see” strategy across the globe.
At the end of 2013, experts were only able to announce much lower
growth for most economies compared with the prior year.
61
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT EQUITY
3,000
2,600
2,867
3,042
3,204
3,399
2,000
1,000
2009
2010
2011
2012
2013
India, which on the one hand slows growth and on the other reduces
earnings, due to an increasing need to recognize impairment losses,
as critical.
At 0.8 percent, defaulting receivables and expenses for additions
to the allowance for impairment as a percentage of sales were up
slightly (2012: 0.6 percent). This is largely due to the continuing effects
of the euro crisis.
We aim not just to satisfy our customers, but to inspire them. As a result, the Würth Group is continually working on keeping its delivery
service level close to the one hundred percent mark. To achieve this
we are prepared to stock individual products, even where this runs
contrary to all our business optimization efforts, in order to be able to
deliver the goods to the customer one day after the order is placed at
the latest. In 2013, we achieved this in 98 out of 100 cases.
The inventories of the Würth Group rose slightly in 2013 to EUR
1,310 million (2012: EUR 1,300 million). The rise in inventories runs
62
counter to sales development because of the company’s efforts to
forge ahead with the expansion of the branch network. 2013 saw
87 new pick-up shops being opened worldwide. What is more, there
were long delivery periods for some product groups, prompting us to
accumulate higher inventory levels from a service perspective. This
ultimately meant that stock turnover calculated on a 12-month basis
fell slightly from 5.3 times at the end of 2012 to 5.2 times.
Financing
The equity of the Würth Group climbed by EUR 195 million to EUR 3.4
billion in fiscal year 2013. This gives the Group a very good equity
ratio – for a trading company – of 42.6 percent (2012: 41.9 percent).
A comfortable equity ratio has been the basis of our healthy financing
for years now, and boosts customers’ and suppliers’ trust in the Würth
Group. This positive equity ratio development is due to the typical
family business approach of reinvesting a large portion of profits in
the company. This sound financing, coupled with the long-term bond
portfolio, enables the Würth Group to continue to grow relatively independently of the short and medium-term development of the capital
markets. Total assets grew by EUR 329 million to EUR 7,978 million
(2012: EUR 7,649 million). This is mainly due to the new cash generated from a bond and investments in property, plant and equipment.
Unlike in previous years, financial services activities only made a small
contribution to the growth in total assets in 2013. Refinancing in the
area of banking was mainly performed through financial intermediaries and refinancing programs of the European Central Bank.
The financial situation of the Würth Group was again appraised by
the leading rating agency Standard & Poor’s in 2013. The Würth
Group has undergone this annual rating process for almost 20 years
now. Standard & Poor’s again rated the Würth Group “A/outlook stable”. The rating of the outlook as “stable” reflects the confidence that
business and the financial KPIs will continue to develop successfully.
The opportunities and potential of the Würth Group are viewed in a
positive light. Our long history of good ratings not only documents
the positive credit rating; at the same time, it is proof of the continuous
and successful development of our corporate group and the stability
of our business model.
The good credit rating allows Würth Finance International B.V. to
obtain favorable financing conditions on the international financial
markets. In May 2013, the Würth Group made use of this, and of the
attractive conditions on the capital markets, and successfully placed
a second benchmark bond worth EUR 500 million. This bond, which
has a maturity of seven years, has an interest coupon of 1.75 percent
p.a. and is secured by an unconditional, irrevocable guarantee issued
by Adolf Würth GmbH & Co. KG, Künzelsau, Germany. The transaction generated keen interest among investors and was oversubscribed eight times within the space of only two hours, with subscription offers worth more than four billion euros. The issue served, by
way of example, to refinance the bonds and promissory note loans
– worth a total of EUR 525 million – that reached, or will reach, maturity in 2013 and 2014 and will boost the Würth Group’s long-term
financing and liquidity base, laying a foundation for future growth
opportunities in sales and investments in logistics and infrastructure.
At the end of the fiscal year 2013, the Würth Group thus has four
bonds issued on the capital market and one private placement. All
covenants in this context have been complied with. Between EUR 170
million and EUR 300 million will fall due in the period between 2014
and 2015, EUR 500 million in 2018 and 2020, and some EUR 150
million in 2021. The maturity profile is thus well balanced. For further
information on maturity and interest structure, we refer to the comments in the consolidated financial statements: H. Notes to the consolidated statement of financial position, [24] “Financial liabilities”.
As of 31 December 2013, the Würth Group has cash and cash equivalents of EUR 749 million (2012: EUR 572 million). In addition, the
Group has a fixed line of credit of EUR 200 million, which remains undrawn to date, provided by a syndicate of banks until February 2018.
Start-ups and acquisitions
The Würth Group establishes subsidiaries to spread successful business models and sales concepts in new markets. This strategy is
supported by the fact that the organization of the Würth Group is
decentralized. In recent years, this has increasingly applied to our established and profitable Allied Companies. In 2013, however, signs
pointing towards difficult sales development in many business areas
meant that the focus was on the stabilization and consolidation of the
individual areas. The only company that was set up was Grass Iberia
S.A. The company will strengthen our sales activities on the Spanish
and Portuguese markets in the fittings business after companies were
set up in Australia, the UK and Italy in 2011 and 2012.
The regional expansion of the Würth Line companies has been more
or less fully exploited. The Würth direct sales companies already
eliver assembly and fastening materials to customers in more than
d
80 countries. Within the Würth Line, the focus is therefore on growth
by expanding the customer base and establishing additional divisions and branches in the respective countries.
In addition to setting up new companies, the Würth Group’s growth
strategy also involves using targeted acquisitions to add companies
to the Group where they prove a good match, allowing the Group to
obtain further market shares. Last year, we exploited the favorable
conditions for us on the M&A market and bought the chemicals company Chemofast Anchoring GmbH, based in Willich, Germany, with
effect from 1 January 2013. At the end of 2013, the company had almost 80 employees and generated sales of more than EUR 20 million.
Chemofast develops and produces chemical mortars, known as “chemical anchors”, and markets these very successfully to its private-label
customers in the construction and retail industries. The acquisition of
Chemofast supports the Group’s strategy in the growing chemicals
market and complements our activities in the area of anchors.
On 22 February 2013, Würth signed the purchase agreement for the
takeover of an 100 percent stake in Ares Oy Nikotips. The company,
which has its registered office in Espoo, Finland, is involved in the
wholesale business for rubber, plastic and polyurethane products,
mainly hydraulic and technical hoses and accessories.
On 1 September 2013, the companies YOUR OWN BRAND GmbH,
based in Neutraubling near Regensburg, YOUR OWN BRAND UK Ltd.,
based in Cheddar, UK, Your Own Brand S.R.L, based in Milan, Italy,
and Kemacos Full Filling Service GmbH, based in Kematen, Austria,
were acquired. YOUR OWN BRAND specializes in the distribution of
own-brand cosmetics products to drugstores, discounters and food retailers. The company Kemacos Full Filling Service GmbH largely supplies brand name companies with its own cosmetics production based
on GMP standards (good manufacturing practice). The purchase of
these companies means that we have production facilities that work
based on GMP standards within the Group, resulting in corresponding investment savings. The companies are an ideal match for complementing our current cosmetics manufacturing activities.
On 23 December 2013, the new company SVH Handels-GmbH took
over some of the assets of SVH24.de GmbH. SVH24.de GmbH was
a trading company focusing on tools that specialized in e-commerce.
63
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Research and development
Research and development plays a key role in the Würth Group. We
use successful distribution, excellent logistics and cost-focused action
to secure our competitive standing. At the same time, we create market
advantages by offering needs-based and, most importantly, innovative
products and services.
In fiscal year 2013, for example, Adolf Würth GmbH & Co. KG generated one-fifth of its sales from products that are less than three years
old. This is a very high proportion for a company that specializes in
sales. The rate of innovation is high across the Group as a whole, too:
the Group currently has 694 active patents, 24 utility models, 343
designs and 5,424 active trademarks. This means that, compared with
the prior year, 196 brands and 47 designs were added in 2013.
Würth Line: To each customer their own Würth
Every customer is different. This is why every Würth customer benefits from an advisory and supply concept that is tailored to suit their
needs. Our distribution center in Künzelsau, which was opened in
2013, creates additional capacity of more than 60,000 order items
a day. This allows Würth to react particularly quickly to customer
wishes. As well as incorporating state-of-the-art technology and ergonomically designed workstations throughout, the construction plans
for the new distribution center also took environmentally-friendly aspects into account.
Würth Industrie: W-KLT®CLIP: saves time and costs
The new W-KLT® and W-KLT®2.0 Kanban containers developed by
Würth Industrie Service GmbH & Co. KG in-house can now be fitted with the innovative W-KLT®CLIP. It is attached to the back of the
container and can be mounted to workstations in a flexible manner
thanks to the mounting rail. With a maximum load of 20 kilograms
and various angular positions, the W-KLT®CLIP can be shifted and
moved horizontally or vertically. This creates a structured and ergonomically friendly workstation and productive working methods in a
manufacturing environment. The product removes the need to walk
far to get operating materials or C parts and takes the lack of floor
and storage space in production lines into account without affecting
existing processes.
64
Adolf Würth GmbH & Co. KG: Würth App
The order behavior of our customers has changed drastically in recent
years. They are calling for, and indeed using, the various opportunities offered by the Internet. This has prompted Würth to focus more on
e-commerce. But this means more than merely offering an online shop.
The measures also include e-procurement or scan-supported ordering
systems like ORSY®scan, which uses a barcode reader to make it easier to capture item data. The Würth App, in particular, makes it easier
for customers to place orders while on the move. It is designed especially for mobile customers and has been subject to constant enhancements since it was launched in 2010. In addition to the latest offers, it
provides functions for downloads, a list of favorites and contact data
for personal points of contact at Würth, as well as the following:
› Mobile ordering using the barcode scanner
As well as manually entering the item number, the app can also be
used to scan product barcodes and then order the desired products
directly from the app.
› Branch locator
The branch locator shows all 400 branches in Germany, together
with their addresses and contact details. Customers can have the
app calculate the route to their chosen branch if they wish.
› Click & Collect
Order in 60 seconds, collect in 60 minutes! The app allows customers to order items with only a few clicks and then collect them
from their chosen branch in Germany in the 60 minutes’ time.
New ASSY®plus: extreme precision from tip to toe
Developers at Adolf Würth GmbH & Co. KG have significantly improved the latest generation of the ASSY®plus. The new pyramidshaped tip, which allows the screw to be exactly positioned without
moving, makes it easier to fit chipboards: as soon as the screw thread
has penetrated the material, the newly developed soft thread run-in
ensures that the thread engages immediately. This reduces the “gripping
time” of the ASSY®plus by 50 percent. As the screw moves further into
the material, the single-start progressive thread means that less force
has to be applied to get the screw into the material and guarantees a
high overtorque. In addition, the new ASSY®plus can be placed up to
three times the screw diameter from the material edge, helping users
with furniture and interior design work, with the assembly of wooden
façades, terraces, window connections and rafter and frame screw
fittings.
W-UR SymCon® frame dowel: the only dowel for three
anchorage depths in concrete
The patented in-house W-UR frame dowel development featuring
the SymCon® special screw allows Würth to offer a system solution
for a broad range of applications. The dowel, combined with the
screw, is used, by way of example, to fit façade substructures made
of wood or steel. It can also be used to securely fix wooden slats,
metal rails, suspended ceilings, cable runs, brackets and treads.
The system is rounded off by special versions, e.g. to fix building or
façade scaffolding. The W-UR 14 SymCon® GS scaffold anchoring
product is currently the only product on the market that has been
awarded a test certificate from the construction industry trade association BG Bau – Berufsgenossenschaft der Bauwirtschaft. It stands out,
in particular, due to its load: the highest load that can be achieved in
concrete at the moment. Together with the SymCon® special screw, the
W-UR is the only dowel on the market that supports three different anchorage depths in concrete. It can be used in masonry in two setting
depths. The plastic dowel, made of high-quality polyamide, was completely revised for the new product. The much improved, secure expansion pattern, which supports the maximum application of force to
the subsurface, is one of its defining characteristics. SymCon® stands
for a symmetrical conical thread that helps ensure that the load is
spread evenly across the entire expansion area of the frame dowel. At
the same time, the plastic in the dowel is optimally compressed when
it is screwed in. In addition to its high-performance technical features,
users can also rely on the highest-quality safety testing thanks to the
European technical approval of this dowel system.
Two-time test winner at TÜV SÜD
In-house product development, stringent test criteria and ongoing
testing the company’s own quality assurance labs ensure the quality
of Würth’s products. In order to have its compliance with national
and international norms confirmed, Würth works with external inspection bodies such as TÜV SÜD (Southern German Association for
Technical Inspection).
TÜV SÜD tested the screwdriver range of 15 premium manufacturers
in a direct comparison. The 3K screwdriver PH2, an in-house Würth
development, took first place. Seven product features were defined:
fracture torque, traction factor, torque that can be achieved by hand,
ergonomics, weight, durability and fracture rotation angle. The 3K
screwdriver is produced in ZEBRA® quality within the Würth Group in
Germany. ZEBRA® has been the hallmark of Würth premium quality
for 35 years. The satin chrome 3K screwdriver with its consistent hexagonal blade won the test team over with its flexible 3-component
grip, which ensures perfect ergonomic features, ideal application of
force and convenience at work. The innovative 5-sided drip featuring gel cushions adapts ergonomically to the hand, meaning that less
force has to be applied and transmitting higher torques as a result.
Users can work for longer without getting tired and also benefit from
high grip stability. An impact cap and continuous blade allow even
the tightest of screws to be easily loosened. The highly durable special steel blade quality ensures durability and torque values exceeding the DIN ISO standards by up to 100 percent. Würth’s 2K screwdriver came in second: the test team recognized the product for its
extreme robustness and it also won in the “force” category.
In the comparison test conducted in August 2013 by TÜV SÜD on
Würth’s behalf, three products from the “pliers” range came first in
their respective categories. Side-cutting pliers, heavy-duty side-cutting pliers and needle nose pliers emerged as the winners compared
with the products of 14 renowned manufacturers. All three sets of
pliers are part of Würth’s ZEBRA® product line. They were tested
using calibrated equipment over a period of several weeks and had
to meet test criteria relating to cutting force, robustness, ability to cut
different materials, handling and accessibility, retention force of the
pliers’ tips and haptics.
Würth International: Fire protection insulation system
Würth’s newly developed fire protection insulation system with European classification for solid ceilings combines innovative technology
with practical application. The system consists of a cement-bonded
polystyrene block that is installed as slab formwork instead of board
formwork when the ceiling is installed. The block is embedded in concrete and securely encloses the ceiling space. Other system components include Würth’s various fire protection sealing products – all of
which meet the very highest European fire-resistant classification standards. This allows almost all installations used in Europe, such as electrical cables, combustible and non-combustible pipes, to be isolated
individuals, or in combination, for fire protection purposes for up to
120 minutes. This meets the requirements for construction products in
terms of physical barriers and insulation (thermal insulation in a fire)
in line with the valid European norms and testing procedures for fire
resistance classification.
65
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Allied Companies
The Allied Companies of the Würth Group also invested in the development of products and services to offer their customers the best possible solutions in 2013.
TUNAP: Chemistry with drive
TUNAP develops, produces and sells chemical products in the areas
of special lubricants, cleaning products, chemical/technical problemsolvers and aerosols for the automotive aftermarket and industry. In
2013, the product portfolio was expanded significantly to include
problem solution products for the automotive aftermarket. The focus
was on professional systems consisting of an application tool and
chemical active agents suited to the tool. These allow even stubborn
stains and deposits on valves, as well as air supply and injection systems, to be removed. The highlight is a powder jet cleaning system
that can be used on drive systems gently and without leaving any residue.
Problems resulting from the different fuel qualities and climatic conditions across the globe can therefore be eliminated or prevented
during the normal vehicle maintenance cycle. The development of
additional special lubricants was another focal point. These activities
were focused mainly on high-quality synthetic grease and oils that
can be used for lifetime unit lubrication. The expansion of the global
production capacities for chemical technical products within the
Würth Group also allowed the company to forge ahead with its overseas concentrates business. In the area of research and development,
the focus is on the formulation of additive combinations (active agent
packages) that are mixed and with the base oils and solvents that are
available in the country in question on site and then bottled.
Würth Elektronik: new direct plug-in connection technology,
SKEDD®
Research and development work has already been extremely important to the Würth Elektronik Group. These activities focus on new
fields of technology, such as printed electronics. With novel printing
procedures for functional materials, the Würth Elektronik Group is
pursuing new solution approaches for the development of miniaturized electronic components. The ORFUS (organic multi-functional
sensor systems) project developed printable magnet-sensitive pastes.
Thanks to modern printing technology and progressive PCB technology, this allows miniaturized ferrite core-based toroidal cores to
be built. These sensor coins can be used, for example, as inductive
magnetic field sensors in control technology applications. In particular, the innovative SKEDD® product in the “intelligent systems” area
66
offers massive economic potential and resulted in the creation of the
SKEDD® profit center. SKEDD® is a form of direct plug-in connection
technology on the printed circuit board. It means that cables and connectors are no longer soldered with adapter components on the PCB,
but are simply plugged in. This removes an entire connection level, allowing material cost savings of 50 percent and process cost savings
of up to 30 percent. The SKEDD® technology is already being used in
the first set of series projects.
Grass GmbH: Vionaro drawer system
The new Vionaro drawer system developed by Grass GmbH in
Austria allows the use of conventional wooden drawers and steel
or aluminum drawers on one and the same slide system. It is based
on the tried-and-tested Dynapro undermount slide system on which,
with Vionaro, narrow and seamless aluminum or steel frames are
mounted. Thanks to the synchronized undermount system with its
high lifting capacity and extremely low withdrawal forces and with
the 3D adjustability that is incorporated into the frame, Vionaro is a
multi-functional system solution that can be ideally incorporated into
the purist design of modern kitchens and living rooms.
InovaChem: in-house formulations for chemical technical
products
InovaChem Engineering AG, based in Wetzikon, Switzerland, is a research lab for the development and distribution of chemical technical
products. The company’s strategy is to develop innovative new products and expand its own formulation expertise for the Würth Group in
order to optimize procurement. The product portfolio mainly includes
cleaning products on a water and solvent-borne base, lubricants,
care products and ecological products. One focal point is the analysis of holistic solutions, in particular aerosol products with suitable
packaging. Since only recently, InovaChem has also been developing structural adhesives based on epoxy, PU and acrylate systems on
niche markets. It also focuses on equipping chemical technical products with copy protection techniques. All in all, the company has 141
marketable formulations for finished products and 70 formulations
for intermediate concentrates.
The Würth Group has a system which enables us to identify, record,
consistently assess and communicate entrepreneurial opportunities
and risks, and to weigh them up against each other. Our conscious
and systematic approach to addressing opportunities and risks is inextricably linked to our entrepreneurial activities.
How the risk management system works
The Würth Group has a three-tier risk management system (RMS),
comprising the cyclical monitoring system of the internal audit function, Group controlling and the early warning system. The Central
Managing Board of the Würth Group holds overall responsibility for
the Group-wide risk management process and defines the principles
of our risk policy and risk strategy. Responsibility for the installation
of a functioning and efficient RMS in the Group companies is the task
of the management of each entity within the Group. They are supported by the risk manager, who reports directly to the Central Managing Board of the Würth Group and coordinates risk management
at Group level. The risk manager is in close contact with the risk controller of the Advisory Board, who reports directly to the Chairwoman
of the Advisory Board.
How the financial reporting internal control system works
The aim of the financial reporting internal control system is to ensure
that all business transactions are completely recorded and correctly
evaluated with regard to the financial reporting requirements.
The Würth information system is a significant component of the internal control and risk management system of the Würth Group. With
the help of this reporting system, all key performance indicators required to steer the Würth Group are presented ready for analysis by
the Central Managing Board and Executive Vice Presidents in addition
to standardized monthly reporting. System-based control mechanisms
such as plausibility testing and cross-checks optimize the quality of
the information as a basis for decision-making. A Group-wide online
record of the financial statements of the Group entities is not only efficient; it also avoids carry-over errors, safeguards uniform provision of
information and also includes numerous plausibility checks, without
which the information cannot be forwarded. The uniform platform also
ensures that financial reporting changes are implemented in a uniform way across the Group. Data is protected from changes by using
control numbers and a system of IT access rights. Standard software
is used for consolidation. Changes in the system settings are logged
centrally. The monthly and annual financial statements of Group companies are regularly checked for plausibility internally, as are the consolidated financial statements. Moreover, Würth’s policy and procedure (PAP) manual contains internal procedural instructions. Internal
publications and training include detailed rules on financial reporting. Compliance with these rules is regularly reviewed by the internal
audit function. External specialists are consulted to clarify the implications of legal and tax issues on accounting. External actuaries calculate pension and similar obligations. Central and local training for
those in charge of finance departments also ensures that all employees involved in the financial reporting process are up to date on the
latest legislation and information of relevance to them.
The opportunity and risk management process is updated within
the Würth Group on an ongoing basis and adapted to changes in
the Group or in its economic and legal environment. In 2013, the ITbased risk reporting system was again rolled out to additional Group
entities and was further improved from a content perspective.
Risks
The Central Managing Board identifies, analyzes and assesses the
Group’s opportunities and risks at a dedicated annual workshop. This
workshop determines focus risks which could pose a threat to the net
assets, financial position and results of operations of individual entities of the Würth Group as a whole in the short, medium or long term.
Furthermore, with the support of the risk manager, all major Group
entities carried out a risk inventory and recorded and assessed focus
risks and other risks in the reporting system. The processes already in
place were continued in 2013, undergoing rolling improvements and
adjustments in line with changing internal and external requirements.
Potential risks are seen by the Central Managing Board in the following risk areas, sorted by descending relevance. With the exception
of IT and solar risks, which were reduced in fiscal year 2013 due to
the measures referred to above, the assessment of all other risks is unchanged.
67
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Overall economic risk
Through our global purchasing and sales activities, we have a high
natural diversification of risk and a decreased dependence on negative economic developments in individual countries, with approximately 85 percent of our sales being generated in Europe. To this extent, we were particularly affected by the weak euro zone economy.
A greater risk is borne by our entities in southern Europe, particularly
in Italy, Portugal, Greece and Turkey, where a need for further restructuring will again arise in some areas in 2014 if sales continue to
fall. In addition, we will have to adjust our business model to reflect
the relevant changes in line with the momentum on the global markets, particularly as far as our distribution systems and channels are
concerned.
The financial risks faced by the Würth Group are largely assessed,
managed and monitored centrally by Würth Finance International B.V.
In order to ensure that the Würth Group is solvent at all times without
restriction, the Würth Group has sufficient cash and cash equivalents
at its disposal and, thanks to its “A rating” from Standard & Poor’s, has
excellent access to the public and private capital markets to procure
further financial resources. There are therefore no liquidity risks for the
Würth Group at present. In addition to the existing liquidity, the Würth
Group had a contractually agreed, unused credit line of EUR 200 million at the end of 2013, which expires in February 2018. According
to recent liquidity forecasts, the Würth Group will not need to draw
on this credit line in 2014. Any risks arising from derivative financial
instruments are accounted for. At the time this management report
was prepared, there was no indication of any specific counterparty
risks, which are automatically monitored on a daily basis. In 2011, a
CSA (credit support annex) was concluded with the main counterparties to derivatives, further reducing counterparty risk. Cluster risks are
avoided by internal deposit limits for individual banks. For information
on derivatives and the risks associated with them, we refer to the notes
to the consolidated financial statements: I. Other notes, [4] “Financial
instruments”.
Staff
Staff turnover, particularly among our sales force employees, remains
a focal point. It is documented and analyzed for every entity in the
Würth Group at all hierarchical levels. Regular employee surveys conducted by independent institutions and the monitoring of staff turnover
are key instruments allowing us to identify unfavorable developments,
analyze their impact on staff recruitment processes, customer loyalty
68
and training programs and combat these effects using targeted measures. The lack of specialist employees is another challenge for HR
management. In Germany, it is becoming increasingly difficult to find
university graduates and skilled trainees. This prompted us to further
expand the measures offered by the Würth Business Academy when
it comes to managing young talent and training management employees in 2013. Up-and-coming management talents undergo development measures to prepare them for various levels of management
within the Würth Group via the MC Würth, High Potential and Top Potential management training programs. These programs give employees targeted training that is tailored to suit their own individual ambitions and skills in order to prepare them for further management duties
within the Group. The international management seminars, as well as
international specialist seminars on issues such as product management or procurement and finance, are organized and coordinated by
the Würth Business Academy.
Würth is an attractive employer, not least due to its worldwide presence. Nevertheless, we take care to ensure that sales and gross profit
grow faster than personnel expenses in principle – one of the Würth
Group’s fundamental principles.
IT strategy
Due to the decentralized organizational structure of the Würth Group,
with a large number of small start-ups in emerging countries, IT risks
are a particular challenge. Thanks to the increasing introduction of
SAP and standard solutions (Würth System 1, online shop, Customer
Relationship Management), this challenge is turning into an opportunity to make existing processes more standardized, efficient, transparent and faster. In this way, we want to synchronize our goal of supplying all customers in line with their specific needs (“To each customer
their own Würth”) with increased efficiency in our IT systems. We aim
to use the consolidation of the Würth company data centers in the Hohenlohe region as a means of achieving greater efficiency increases,
medium-term cost savings and increased process security.
The security of the IT systems is reviewed by means of IT checks at the
Group entities in accordance with a plan coordinated with the Central
Managing Board of the Würth Group. We are currently analyzing the
potential threat that cyber risks pose. We combat the resulting risks by
taking organizational or technical measures and are currently looking
into transferring the risk to external risk carriers (insurers).
Default
On the sales market we employ active customer management to
counter risks arising from a lack of customer loyalty or rising customer
attrition. Due to our very extensive core range of over 100,000 products, the comparatively low average order values and our broad customer base, we are well positioned to keep these risks at a minimum.
Customer insolvencies are therefore a manageable risk for the Würth
Group. Where economically feasible, we work with credit insurers.
In addition, receivables from customers are monitored by an extensive receivable management system, also at Group level. Individual
financial service providers are associated with a heightened risk of
default. We counter this risk through a strict credit verification procedure and appropriate insurance for our investment. In 2013, collection days increased slightly in comparison to 2011, for example due
to economic conditions in Italy and France, but stabilized at a very
good low level overall. This highlights that our risk in this area is relatively low and that the existing processes and systems are effective.
Suppliers
Regarding the procurement market, the Würth Group minimizes risks
through efficient risk management. A defined code of conduct is applied to all suppliers, which includes as social standards aspects of
human rights, children’s rights and core labor standards, as ecological standards aspects of environmental protection, and from a legal
perspective compliance with national and international laws and regulations. The risk of supplier insolvency is countered by Würth with
a general policy of choosing at least two suppliers for every major
product group who satisfy the Würth Group’s high quality standards
as well as those of our customers. Owing to this rule, no major supply
bottlenecks have been caused to date by the insolvency of a supplier.
For crucial products, we also have increased buffer stocks. Cost burdens resulting from punitive duties for the import of certain products
from China and Malaysia affect the market as a whole. Where possible, we aim to protect the interests of the company, both in terms of
public policy and by engaging legal experts in China and Europe.
Renewable energies
Extensive internal evaluations on the future prospects for the Würth
Group’s solar activities led us to the decision, following the sale of
the solar production area in 2012, to withdraw from trading in solar
modules as well. The customer service area for existing systems has
been transferred to the new company E 3 Energie Effizienz Experten
GmbH, which also offers advice and service on photovoltaic issues.
In the field of wind power, business development is also heavily dependent on the willingness of individual countries to provide subsidies and on increasing attention to environmental factors in the construction of large-scale installations. This will heavily impact demand
for our fastening systems. In the past fiscal year, this area fell far short
of our expectations. Where necessary, a provision was made in the
accounts.
Major risks that can be insured on an economically reasonable scale
are covered by master programs for all Group entities wherever possible. Overall insurance cover is managed centrally. Risks from the regulatory environment are becoming more and more important for us
as a global player. In particular, they arise from the increasing complexity of tax law, for which we have experts in-house and recourse
to renowned external consultants on a case-by-case basis.
Opportunities
The opportunities set out below could have a positive impact on net
assets, financial position and results of operations
Decentralized structure
Würth’s decentralized structure is a great advantage for the Group,
especially in light of the fact that the individual countries in which we
operate display such variation in their economic development. We
believe that this structure presents an opportunity for future growth.
It allows a quick local response to circumstances and changes in any
given market environment, meaning that we can implement efficient
measures. We will continue to push the development of the Würth
Group while maintaining our decentralized structure.
Direct selling
The business model of direct selling still offers considerable opportunities for the Würth Group in that it places us very close to the market
and ensures customer loyalty. Our sales force receives direct feedback
on customer acceptance of our products and services thanks to the
high level of customer contact each day. We can therefore analyze
the results of our work very quickly and make changes as necessary.
69
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT Market penetration
Our global share of the market is estimated at just five percent due
to a low share of the market in most countries, with a few exceptions.
What would appear to be a disadvantage actually signals huge growth
potential that we can still tap into by further expanding our customer
base and intensifying our customer relationships, for example by continually enhancing intelligent distribution systems that offer real benefits to our customers.
Multi-channel sales and customer management
Besides the traditional direct sales, the Würth Group has also set up
and expanded additional sales channels in recent years. We consider the sales branches and e-commerce to be key opportunities.
Coupled with the consulting services appreciated by our customers,
we will continue to pursue these sales channels in the future to offer
our customers various ways to purchase goods and services from us.
Expanding and maintaining our customer base are key components
of our long-term success. As a result, we will continue to focus on very
intensive customer management at all Group companies. Grouping
our customers based on their individual needs is a key steering mechanism for strategic management. The relationship between customer
wins and sales growth as well as the service degree are important indicators of business success for us.
Liquidity
The financial strength and independence of the Würth Group present
important opportunities for the Group. The long-term reliability, which is
important for major customers in particular when it comes to security in
the supply relationship, is a clear competitive advantage. The potential
disappearance of some competitors from the market improves our opportunities, and at the same time opens up possibilities for acquisitions,
which we can respond to quickly thanks to our good liquidity level.
Quality
It is the declared aim of the Würth Group to meet, or where possible
exceed, the highest quality standards. For this reason, the guiding principle “Würth stands for quality – anywhere, anytime” was anchored
in the Würth Group’s quality management in 2010 and consistently
developed further in the period from 2011 to 2013. The brand promise made by this principle applies for all of our markets, and its implementation opens up important additional market opportunities. This is
true both of customers in the professional trades and those in industry.
70
For us, ensuring reliable compliance with standards as well as product
requirements and approval criteria is a fundamental quality management task to enable us to be a dependable partner for our customers.
This is important, but we do not consider it enough in itself. This is why
we strive to surpass customer expectations wherever possible through
services that go beyond standards and inspire our customers. Efficient
business processes, which were continually enhanced again in 2013
to meet our customers’ needs, lay the foundation in this respect: “To
each customer their own Würth.”
In the fiscal year 2013, the Würth Group’s central quality team continued its activities. Quality manager networks were facilitated within
the units and divisions, and quality policy and strategy were communicated and discussed at regional quality conferences in Europe, China,
South and North America. Würth Quality Risk Company Assessments
(QRCA), which identify strengths and scope for improvement and derive measures for the future, had already been conducted 216 times
by the end of 2013. The management of the respective entity directly
implements the findings in specific process enhancements that sharpen
quality consciousness. The measures prioritize customer interfaces
(contract review), complaints management, warehouse batch management, quality assurance and supplier management.
An important component remains the validation of future products by
Adolf Würth GmbH & Co. KG and Würth International AG and the
systematic testing of incoming goods. The Würth Group has its own
testing labs worldwide, three of which now have ISO 17025 accreditation. The training initiative in quality management was designed
and launched in 2012 and expanded further in 2013. Employees from
quality assurance are the main target group. The basic seminars also,
however, target employees from other relevant functional areas, e.g.
Purchasing. A total of 88 employees received training on the topic of
quality at 560 seminar days in 2013.
Overall assessment
The risks for the Würth Group are limited by the functioning risk
management system that is in place. Existing risks are consistently monitored and assigned measures to ensure that they do not jeopardize
the Würth Group’s ability to continue as a going concern. We are currently not aware of any such risks. The existing opportunities enable us
to continue to grow profitably in 2014 and in the subsequent years.
Employees
• 63,571 employees worldwide
• Dual training launched in India
• Comprehensive health management launched
in Künzelsau
Workforce development
As of 31 December 2013, the number of employees working for
the Würth Group fell by 2.5 percent to 63,571 worldwide (2012:
65,169). This is due primarily to the ongoing difficult economic situation on the southern European markets, which are important for
Würth. The headcount in Germany came in at 19,415 (2012: 19,605),
with 44,156 employees (2012: 45,564) outside of Germany. Sales
has traditionally been a very important area for the Würth Group.
Worldwide, there were 29,157 employees working as permanent
sales representatives in the Group companies in fiscal year 2013
(2012: 30,790).
The lack of specialist employees is another challenge for HR management. In Germany, it is becoming increasingly difficult to find university graduates and skilled trainees. This prompted the Würth Group
to recruit more than 20 IT specialists from Spain, Italy, Greece, Russia and Belarus in 2013. These employees work for the subsidiary
Comgroup GmbH in Germany and are working on international
projects for the Würth Group, mainly in the SAP environment and in
the web and e-commerce areas. The aim is to give these employees,
who have emigrated from other countries, permanent employment
contracts and, as a result, the chance to live in Germany in the long
term. By offering German classes, support in dealing with local authorities or finding an apartment, the company is taking active measures
to help integrate these employees.
Promoting the talents of the future
As a family business, Würth is committed to long-term corporate development. This also applies when it comes to promoting the talents of
the future. In Germany, where there is a long tradition of dual training
concepts, Würth has been committed to providing people just embarking on their careers with extensive initial training for more than
60 years now. The Würth Group currently employs more than 1,300
trainees training for more than 50 occupations, including commercial
traineeships as well as traineeships in logistics and IT. Career entrants
can also study for Bachelors’ degrees at the Baden-Württemberg Co-
operative State University. Technical occupations and catering traineeships form other training focal points within the German companies.
We make systematic decisions on the number of traineeships to offer,
and the number of trainees to employ after their training, based on
our needs and the company’s future development.
In India, Würth launched the post-graduate program in Business Administration at Reinhold Wuerth India Pvt. Ltd. in Chennai in the fall of
2013, a dual commercial vocational training program based on the
German system. 15 Indian trainees in Chennai will pass 24 months of
training after having obtained their Bachelors’ degree. The students
alternate between three months of in-house practical training and
three-month blocks of theoretical training at the Indo-German Training Centre (IGTC) in Chennai. The program was initiated by Würth
and developed together with the German-Indian Chamber of Commerce and its training center, the IGTC. The program is also recognized by the German Chamber of Industry and Commerce (DIHK).
The trainees who complete their training successfully will therefore receive a qualification from the German-Indian Chamber of Commerce
(IGTC Business Administration certificate) and one from the DIHK
(Management Assistant in Wholesales and Foreign Trade certificate).
This means that their training is recognized not only in India, but in the
whole of Europe.
Employee training
The Würth Group promotes ongoing training for employees throughout their entire working life – from trainees to managers. We see lifelong learning as a specific duty in order to ensure the future of our Group.
In Germany, the established Akademie Würth offers employees of
the Group management training, staff leadership seminars and further commercial and technical training. Various training programs on
personal and social skills, working methods, IT applications and foreign languages are also on offer.
Training programs for working professionals at the Akademie Würth
Business School, which are open both to employees of the Group and
to interested individuals from outside of the Group, allow people to
study for academic degrees after completing their initial vocational
training. These include the Business Administration B.A. in cooperation with Hamburger Fern-Hochschule (Distance Learning University),
a three-and-a-half year program. In collaboration with the University
of Louisville in Kentucky (USA), Würth has been offering the Master’s
71
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT course in Global Business since 2002. The one-year program, which
is conducted in the English language, awards graduates a Master of
Business Administration (MBA).
In the fall of 2013, representatives of the Akademie Würth Business
School signed a new cooperation agreement with Lawrence Technological University in Michigan, USA, for two technical courses of
study. These programs allow interested individuals to study for their
Master of Science in Industrial Engineering and Doctor of Engineering in Manufacturing Systems. In addition to the business degrees for
working professionals, this will also allow the Business School to offer
further academic qualifications for engineers.
Career programs
The Würth Group recruits most of its managers from within the company. We have established various development programs within the
Group to ensure holistic management training processes and the systematic development of up-and-coming talents.
The Würth Group offers the following programs:
› The MC Würth program prepares employees for middle management positions. 437 talents participated in this program in 2013.
› The High Potential program supports managers on their way to
upper management levels. 64 managers took part in 2013.
› The Top Potential program was launched by the Würth Group in
2012. The three-year program prepares selected managers for
positions in the highest echelons of corporate management. 49
managers were on the program in 2013.
Health management
As an employer, we take the health of our employees very seriously.
This applies, in particular, given the challenges posed by demographic change and the higher average age of our employees. The
“Fit mit Würth” in-house health program in Künzelsau has been a key
component of our efforts in this area for almost 20 years now. Starting in 1994 with ten exercise classes and three presentations, the
program has been continually expanded over the years: more than
EMPLOYEES
IN THE WÜRTH GROUP as of 31 December
Employees, thereof
sales representatives
80,000
60,000
46,973
26,085
50,767
27,488
54,906
29,020
63,699 62,811
30,650 30,831
57,882
28,613
62,433
30,410
66,113
32,449
65,169
30,790
63,571
29,157
2011
2012
2013
40,000
20,000
2004
72
2005
2006
2007
2008
2009
2010
1,000 Group employees and their relatives attended one of the 300
fitness, nutrition or relaxation courses on offer in 2013.
As the next step in this process, a holistic health management program has been under development at Adolf Würth GmbH & Co.
KG since 2013. Within this context, we created the new position of
“health manager” within the company. The aim is to help employees
with healthy living and working. By way of example, regular health
days have been organized for employees in Künzelsau since 2013.
Our efforts to establish health management follow a broad-based
approach. Panorama Catering, for example, offers premium quality,
balanced meals in Würth’s company canteens in Künzelsau and Bad
Mergentheim. The in-house caterer has enjoyed JOB & FIT certification from Deutsche Gesellschaft für Ernährung e.V. (German Nutritional Society), in these locations since 2013.
In addition to Adolf Würth GmbH & Co. KG, other Group entities
are also taking active health promotion measures. In Switzerland, for
example, Würth International AG was awarded the Friendly Work
Space label in 2013. The label is a seal of quality for companies with
systematic health management programs that use these to create optimum conditions for the health of their employees.
Thanks to our employees
The Central Managing Board of the Würth Group would like to take
this opportunity to say a big thank you to all of our employees this
year, too. Their commitment, expertise and sense of identification with
the company play a key role in explaining why the Würth Group has
managed to be such a profitable and successful family business for
more than 60 years now.
We also wish to express our thanks to the employee representatives
in the individual Würth entities. The constructive cooperation between
these bodies and the management of the Group entities led to important measures being implemented.
Corporate Responsibility
Entrepreneurial activity requires responsible action. As a family business, Würth has been committed to this principle since its early years.
Our business activities are based on profit-oriented corporate governance, always hand-in-hand with responsible behavior towards all
stakeholders.
Beyond the realms of our core business, we also want to use our role
as a corporate citizen to generate added value for society in the
places where we are based, helping to tackle social challenges.
Ecological awareness
At Würth, ecological awareness and environmental management are
lived and practiced in many different ways. These include ongoing
development of environmentally friendly new products as well as our
commitment to energy efficiency.
By way of example, the environmental management system of our
parent company, Adolf Würth GmbH & Co. KG, has been DIN EN
ISO 14001 certified since 1996. For the manufacture of the ECO
LINE products, which were launched in 2012 and include cleaning
and care products for the automotive aftermarket, we do not use any
substances and solvents that are environmentally hazardous or harmful to the climate.
We are constantly working on optimizing energy management in our
own buildings and logistics centers. By way of example, the new Distribution Center West building, which started operations in 2013 at
the Group’s headquarters in Künzelsau, is equipped with a biomass
heating system and a heat recovery plant. We also take ecological
aspects into account when planning new buildings for the international
Würth companies. The new Würth House Rorschach, Switzerland,
uses water from Lake Constance to cool and heat the building, allowing us to do without fossil fuels entirely. The roof of the building is also
equipped with photovoltaic systems.
The new headquarters of HAHN+KOLB Werkzeuge GmbH, a company belonging to the Würth Group in Germany, a building which
was opened in 2013, features two south-facing facades at 45-degree
angles. These offer considerable space for photovoltaic elements,
allowing sustainable energy generation and reduced CO2 emissions.
Around 1,400 square meters of green space on the roof also ensure
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BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT that the building blends into the environment in an ecological and visually attractive manner. Heat and air conditioning are supplied by a
geothermal heat pump. This covers around 70 percent of the distribution center’s annual heating energy needs. In summer, the system facilitates virtually energy-free cooling and air conditioning.
Social commitment
Assuming social responsibility is something that is very important
to the Würth Group. This attitude can be felt throughout the entire
Group. The Würth Foundation, set up in 1987 by Carmen and Reinhold Würth, promotes the Foundation’s own projects and third-party
initiatives in the fields of art and culture, science and research, and
education in Germany. The Foundation has total capital of EUR 7.6
million. At international level, the Würth companies are active in
many local social projects in the countries in question.
One particular focal point of our corporate citizenship activities has
been our support for people with disabilities in recent years. The Hotel
Restaurant Anne-Sophie, which belongs to the Würth Group, allows
disabled people to be part of day-to-day working life at the hotel. This
initiative was started by Carmen Würth. You can find detailed information on the Hotel Restaurant Anne-Sophie and the activities of the
Würth Foundation in the chapter entitled “Commitment”.
The Würth Group companies are also committed to the Special
Olympics, the world’s largest sporting organization for people with
mental and multiple disabilities, in a large number of countries. As
well as the financial support offered by the Würth Group, many
Group employees work as volunteers at the various sporting events.
In Germany alone, 50 Würth Group employees, including a large
number of trainees, worked as voluntary helpers at the Special
Olympics in Garmisch-Partenkirchen in 2013.
Art and culture
Art and culture are part of the Würth company. Their strong presence and the diverse activities are a product of a corporate culture
filled with life. The museums at the headquarters of Adolf Würth
GmbH & Co. KG in Künzelsau, Kunsthalle Würth and Johanniterkirche in Schwäbisch Hall are expressions of this special commitment, as are the eleven associated galleries in the European Würth
companies. The exhibitions, which are integrated into the context of
the company hosting them, form an inspiring juxtaposition and blend
74
of art and ordinary business. Accompanying cultural events and
active art instruction, aimed chiefly at children and teenagers, complete the picture.
At the Group headquarters in Künzelsau, the in-house Akademie
Würth has been offering the public a cultural program featuring classical, cabaret and jazz artists for more than 20 years now. This extraordinary concept has proven very successful and has been applied by
other companies in the Würth Group: Switzerland now has the Forum
Würth Chur and Forum Würth Arlesheim – both incorporated into the
respective office buildings. In addition to an art area that is home to
temporary exhibitions, cultural events are also held here.
The spring of 2013 saw the new Forum Würth Rorschach open its
doors to the public. Here, on the banks of Lake Constance, the building is now the third Swiss location in which the Würth Group has
opened an art gallery to the public. A varied cultural program is also
offered to the public with events from various genres and a program
accompanying the art exhibitions. We want to make an active effort
to be a good neighbor in Rorschach and the surrounding area, as
well as remaining true to our own cultural commitment.
Corporate governance provides rules and standards for good and
responsible management and monitoring of companies. Rules, codes
of conduct and standards for management and monitoring functions
within the Würth Group are shaped by the corporate philosophy and
culture.
The corporate philosophy shaped and defined by Prof. Dr. h. c. mult.
Reinhold Würth determines the credo and self-image of the Würth
Group. Together with corporate ethics, the corporate culture deals
with the values and standards that should underlie entrepreneurial
actions and decisions as well as the behavior of people working
together. Würth’s corporate culture is shaped by concepts such as
dynamism, performance-orientation, openness, honesty, reliability
and responsibility.
Corporate governance in the Würth Group is ensured by the following rules and systems:
› A written corporate constitution laying down all the rules of
interaction between the company and its owners, the Würth Family
Trusts
› A dual management system, i.e., segregation of functions for
operating management and supervisory bodies, with the Central
Managing Board and Advisory Board comparable to the
management board and supervisory board, respectively, of a
stock corporation
› Internal audit department
› Audit of significant separate financial statements and the
consolidated financial statements by independent auditors
› Risk management and risk controlling
› Refined controlling methods to create transparency in operating units
› Rating of the Würth Group by an international rating agency
In addition to these regulations and measures, the Central Managing
Board of the Würth Group follows the current development of the
German Corporate Governance Code (GCGC) and the German
Code for Family Businesses. It adheres to these codes wherever the
regulations are applicable to the Würth Group. Below are some
further examples of corporate governance measures besides those
set out above:
› Examination of efficiency at the Advisory Board of the Würth
Group pursuant to No. 5.6 GCGC
› Establishment of committees within the Advisory Board of the
Würth Group, e.g., the audit committee pursuant to No. 5.3.2
GCGC
› Clear division of authorities between the bodies of the Würth
Group by way of a binding approval catalog for management
measures
› Performance-related payment of top management with variable
and fixed salary components pursuant to No. 4.2.3 GCGC;
appropriateness of total remuneration is borne in mind and a cap
on severance packages has been arranged.
A further component of corporate governance is compliance on the
part of employees. With more than 63,000 employees, the Würth
Group needs clear rules to determine its conduct or the framework for
entrepreneurial decisions. This is particularly relevant in light of the
fact that the Würth Group’s activities span more than 80 countries.
We need to set out binding standards and rules of conduct without
infringing the laws and values prevailing in various countries and cultures. On the basis of the corporate philosophy and corporate culture
described, Würth’s policy and procedure (PAP) manual sets out a code
of conduct to guide executives and employees with respect to the behavior and actions expected of them within the company and in relation to its environment.
Subsequent events
There were no major events after the balance sheet cut-off date. In all
other respects, we refer to the comments in the consolidated financial
statements: I. Other notes, [10] “Events after the reporting period”.
Outlook
Overall economic environment
The forecast for global economic development is cautiously optimistic
thanks to positive economic data in major countries in Europe and the
US, and the recent trend towards more dynamic development on the
emerging markets. The structural adjustments in the euro zone in the
aftermath of the sovereign debt crisis should start to bear fruit, with a
long-term effect, in 2014 and contribute to further global economic
growth. We expect global GDP to increase by 3.7 percent in 2014
(2013: + 3.0 percent).
In the euro zone, gross domestic product is likely to grow again in
2014 for the first time since 2011. It is likely to benefit from stronger
domestic demand thanks to a slight increase in real wages and from a
revival on the global economy. With growth to the tune of 1.2 percent,
however, the euro zone countries will emerge from the recession with
only little momentum (2013: – 0.4 percent). The economic situation is
also expected to ease in the southern European countries at the center of the crisis. We expect to see growth of 0.8 percent in Spain and
0.5 percent in Italy (2013: Spain – 1.2 percent, Italy – 2.0 percent).
Economic output in Portugal is expected to rise by 1.3 percent, with
output in France likely to rise by 1.0 percent (2013: Portugal – 1.4 percent, France + 0.2 percent). As far as Ireland is concerned, we expect
growth of 2.8 percent (2013: + 0.1 percent). This means that Irish GDP
growth is expected to outperform the euro zone average.
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BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT In Germany, the most important sales market for the Würth Group,
economic momentum is expected to pick up slightly. This development
will be driven by falling unemployment rates, increasing domestic consumption and rising corporate investment levels fuelled by low interest
rates. We therefore expect to see economic growth of 1.9 percent in
2014, 1.5 percentage points more than in the previous year (2013:
+ 0.4 percent).
The forecast for the German Würth Group’s individual key industries
in 2014 is also positive. Sales in the trades are expected to grow by
2.0 percent (2013: – 0.8 percent). A 3.5 percent increase in sales
is expected for the building industry (2013: + 3.0 percent). In the mechanical engineering sector, the improvement in exports will fuel considerable productivity growth of 4.0 percent after recent negative
developments (2013: – 1.5 percent). The economic situation is also
looking much more favorable in the metal and electrical industry.
We forecast production growth of 3.0 percent (2013: + 0.2 percent).
The German automotive industry also expects production to rise
slightly in 2014 to around 5.55 million cars (2013: 5.45 million).
2014 will see the US economy grow slightly faster than last year at
an estimated 2.5 percent (2013: + 1.9 percent). The Latin American
economy is also looking up: after 2.7 percent in 2013, output will rise
to an estimated 3.4 percent in 2014. The markets of China and India,
which are important to the Würth Group, are expected to continue
to achieve a relatively high level of growth. Growth of 7.2 percent is
expected for China (2013: + 7.7 percent). In India, the economy is
likely to grow by 5.0 percent (2013: + 3.9 percent).
Development of the Würth Group
• Aim to lift earnings to over EUR 500 million
• Actively shape networked worlds
• Strategically optimize companies’ market positions
depending on maturity level
The macroeconomic development forms the basis for optimism for
2014, when we aim to achieve further growth and exceed the EUR
10 billion sales threshold. The overall economic environment provides
us with guidelines in this respect, but does not create barriers that we
cannot overcome. Our optimism is based on the positive sales development in the fourth quarter of 2013, which has evidently continued
in the first few months of fiscal year 2014. By the end of February
76
2014, for example, we had generated sales of EUR 1,636 million, up
by 3.7 percent on the prior year (2013: EUR 1,577 million). Strategic
optimization processes, the planned additions to the sales force and
the expansion of our e-commerce activities will also bear fruit. After
the first two months, earnings development is now also on schedule
and is ahead of the levels seen in January and February 2013.
Our geographical diversification allows us to benefit from regional
growth markets and at least partially compensate for downward
trends or stagnation on other markets. The strategic approaches to
market penetration depend on the maturity of the individual markets.
In market environments that are still in the early days of their development, the focus is on setting up a sales force. Established subsidiaries concentrate on refining their sales network through a regional
approach, customer-specific segments, acquiring new customers and
a policy of seeking out potential. For seven years now, we have been
working hard on establishing our branch network in order to continually expand our customer base and offer long-standing customers
new, improved services on an ongoing basis. We are also focusing
on ramping up our e-business activities on a massive scale, underlining our aim to be seen as a pioneer among multi-channel sales companies.
The Würth Group has a wealth of promising business ideas and innovations, as well as solid market success, at its fingertips. This also
means, however, that we sometimes have to take difficult business
decisions and work systematically on our costs, processes and structures. We want to constantly improve our profitability. The measures
taken in recent years will have a positive impact in 2014, too. In order
to progress further, we have to cut our fixed costs and boost our productivity. With this in mind, we will remain focused on our vision of
ensuring that the Würth Group remains competitive and fit for the
future. Our strategic guidelines are our long-standing strengths: innovative strength, excellent quality, broad international structure, targeted focus on customers and our unique, sophisticated corporate
culture. In terms of content, we are focusing on three areas: earnings
power, agility in new business models – and, as a result, exploiting
potential in a world that is moving closer and closer together – and,
naturally, growth. This means boosting our market share and becoming more competitive in each and every area of activity.
We want to tap into new markets and, at the same time, exploit the
opportunities offered by our conventional business. This increasing
networking will open up huge opportunities for the Würth Group.
We want to play an active role in shaping this world. In sales, our
strategic objective is to offer solutions for our customers’ networked
lives. At the same time, we are aware that our networked world is not
only dynamic, but can also be volatile. Awareness and the ability to
react are a must. We are moving fast, collaborating closely across
company boundaries and, in doing so, boosting process efficiency.
In addition to all other measures, ensuring liquidity is a top priority. In
general, our solid financing leaves us in a very good position and we
have a high level of liquidity that allows us to react quickly to market
opportunities.
The investments planned for 2014 will be on a par with those made in
fiscal year 2013.
One major success factor in Würth’s culture is entrepreneurial thinking, which is put into practice by Reinhold Würth and his family. This
also means that occasional setbacks are part of the learning process.
Both aspects have to occur together if we want to be successful in the
long term. Würth aims to be a global market leader with its services
and products, in order to make our customers’ work a little bit easier
every single day thanks to products that motivate and offer real benefits. This motivates customers and employees alike, opening up new
perspectives for each individual.
Overall statement on the future development
of the Würth Group
We aim to achieve sales in excess of EUR 10 billion and report a
result of more than EUR 500 million in 2014. This is subject to the
proviso that the global economy shows positive development and
that we are spared any major slumps.
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BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT 78
CONSOLIDATED FINANCIAL
STATEMENTS
80
CONSOLIDATED
INCOME STATEMENT
81
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
82
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
84
OF CASH FLOWS
86
OF CHANGES IN EQUITY
87
CONSOLIDATED VALUE ADDED
STATEMENT
88
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
88 A. General information
88 B. Adoption of International
Financial Reporting Standards
95 C. Consolidated group
98 D. Consolidation principles
99 E. Foreign currency translation
100 F. Accounting policies
108 G. Notes to the consolidated
income statement
112 H. Notes to the consolidated
statement of financial position
140 I. Other notes
151 J. Notes to the consolidated
statement of cash flows
152 K. List of shareholdings
167 L. The boards
170
AUDIT OPINION OF THE
INDEPENDENT AUDITOR
79
CONSOLIDATED INCOME
STATEMENT
in millions of EUR
Sales
Changes in inventories
Own work capitalized
Cost of materials
Cost of financial services
Other operating income
Personnel expenses
Amortization and depreciation
Other operating expenses
Finance revenue
Finance costs
Earnings before taxes
Income taxes
Attributable to:
Owners of parent companies in the Group
Non-controlling interests
80
[1]
[2]
[3]
[4]
[5]
[6]
[7]
[7]
[8]
2013
9,745.1
– 0.7
9.3
4,650.0
35.3
5,068.4
Share
%
100.0
0.0
0.1
47.7
0.4
52.0
2012
9,984.7
– 36.7
8.4
4,820.8
37.9
5,097.7
Share
%
100.0
– 0.4
0.1
48.3
0.4
51.0
Change
%
– 2.4
– 98.1
10.7
– 3.5
– 6.9
– 0.6
86.1
2,733.7
303.2
1,623.0
45.8
126.5
413.9
104.5
309.4
0.9
28.1
3.1
16.7
0.5
1.3
4.2
1.0
3.2
91.8
2,756.1
314.0
1,671.0
44.2
105.9
386.7
107.8
278.9
0.9
27.6
3.1
16.7
0.5
1.1
3.9
1.1
2.8
– 6.2
– 0.8
– 3.4
– 2.9
3.6
19.5
7.0
– 3.1
10.9
295.3
14.1
309.4
3.0
0.2
3.2
267.3
11.6
278.9
2.7
0.1
2.8
10.5
21.6
10.9
OF COMPREHENSIVE INCOME
in millions of EUR
2013
Share
%
2012
Share
%
Change
%
Items that are not reclassified to profit or loss
Remeasurement of defined benefit plans Taxes attributable to other comprehensive income
309.4
100.0
278.9
100.0
10.9
– 9.5
– 2.9
– 3.1
– 0.9
45.8
11.5
16.4
4.1
<– 100.0
<– 100.0
– 58,4
51.8
257.6
– 18.9
16.7
83.3
1.5
32.8
246.1
0.5
11.8
88.2
<– 100.0
57.9
4.7
244.0
13.6
257.6
78.9
4.4
83.3
235.0
11.1
246.1
84.3
3.9
88.2
3.8
22.5
4.7
Items that may be reclassified to profit or loss
in certain circumstances
Foreign currency translation
Other comprehensive income
Total comprehensive income
Attributable to:
Owners of parent companies in the Group
[25]
81
OF FINANCIAL POSITION
Assets
in millions of EUR
2013
Share
%
2012
Share
%
Change
%
Non-current assets
Intangible assets including goodwill
Property, plant and equipment
Financial assets
Receivables from financial services
Other financial assets
Other assets
Deferred taxes
[9]
[10]
[11]
[12]
[17]
[18]
[13]
203.4
2,411.9
50.3
735.6
20.5
26.9
124.1
3,572.7
2.6
30.2
0.6
9.2
0.3
0.3
1.6
44.8
166.7
2,313.9
53.4
731.1
26.4
22.4
140.4
3,454.3
2.2
30.3
0.7
9.6
0.3
0.3
1.8
45.2
22.0
4.2
– 5.8
0.6
– 22.3
20.1
– 11.6
3.4
Current assets
Inventories
Trade receivables
Income tax assets
Other assets
Securities
Cash and cash equivalents
[14]
[15]
[12]
[16]
[17]
[18]
[19]
[20]
1,310.0
1,210.1
682.2
42.5
157.4
131.7
117.2
749.2
4,400.3
16.4
15.2
8.5
0.5
2.0
1.6
1.5
9.4
55.1
1,299.7
1,233.1
606.6
30.8
141.2
132.6
105.2
571.5
4,120.7
17.0
16.1
7.9
0.4
1.8
1.7
1.4
7.5
53.8
0.8
– 1.9
12.5
38.0
11.5
– 0.7
11.4
31.1
6.8
Assets classified as held for sale
[21]
5.3
4,405.6
0.1
55.2
74.1
4,194.8
1.0
54.8
– 92.8
5.0
7,978.3
100.0
7,649.1
100.0
4.3
82
Equity and liabilities
in millions of EUR
Equity
Equity attributable to parent companies in the Group
Share capital
Reserves
Retained earnings
Current liabilities
Trade payables
Liabilities from financial services
Financial liabilities
Income tax liabilities
Provisions
Other financial liabilities
Other liabilities
Liabilities associated with assets
classified as held for sale
Share
%
2012
Share
%
Change
%
372.4
1,370.5
1,592.2
3,335.1
63.4
3,398.5
4.7
17.2
19.9
41.8
0.8
42.6
476.4
1,249.6
1,425.1
3,151.1
53.0
3,204.1
6.2
16.3
18.7
41.2
0.7
41.9
– 21.8
9.7
11.7
5.8
19.6
6.1
343.6
1,432.9
186.1
79.3
5.7
4.4
98.3
2,150.3
4.3
18.0
2.3
1.0
0.1
0.1
1.2
27.0
447.3
1,168.8
194.4
73.1
5.1
2.8
93.2
1,984.7
5.8
15.3
2.5
1.0
0.1
0.0
1.2
25.9
– 23.2
22.6
– 4.3
8.5
11.8
57.1
5.5
8.3
426.4
808.0
374.2
30.2
146.9
301.2
342.6
2,429.5
5.3
10.1
4.7
0.4
1.8
3.8
4.3
30.4
404.6
700.5
449.4
46.8
140.3
338.4
350.2
2,430.2
5.3
9.2
5.9
0.6
1.8
4.4
4.6
31.8
5.4
15.3
– 16.7
– 35.5
4.7
– 11.0
– 2.2
0.0
0.0
2,429.5
0.0
30.4
30.1
2,460.3
0.4
32.2
– 100.0
– 1.3
7,978.3
100.0
7,649.1
100.0
4.3
[22]
Non-current liabilities
Obligations from post-employment benefits
Provisions
Other liabilities
Deferred taxes
2013
[23]
[24]
[25]
[26]
[27]
[28]
[13]
[23]
[24]
[26]
[27]
[28]
[21]
83
OF CASH FLOWS*
in millions of EUR
Income taxes paid
Finance costs
Finance revenue
Interest income from operating activities
Interest payments from operating activities
Changes in obligations from post-employment benefits
Amortization, depreciation and impairment losses / reversals of impairment losses
Losses on the disposal of non-current assets
Gains on the disposal of non-current assets
Other non-cash income and expenses
Gross cash flow
Changes in inventories
Changes in trade receivables
Changes in receivables from financial services
Changes in trade payables
Changes in liabilities from financial services
Change in short-term securities
Changes in other net working capital
Investments in intangible assets
Investments in property, plant and equipment
Investments in financial assets
Investments in newly acquired subsidiaries less cash**
Cash received from the disposal of assets
Cash flow from investing activities
84
2013
413.9
2012
386.7
– 120.0
131.0
– 50.3
30.3
– 12.7
– 8.4
299.0
5.8
– 19.3
68.4
737.7
– 142.9
112.6
– 50.9
26.5
– 14.9
4.8
313.4
2.2
– 6.3
56.0
687.2
1.7
– 30.8
– 97.7
18.7
3.8
– 11.9
– 22.8
598.7
17.6
– 24.4
– 45.1
– 21.6
51.6
– 21.4
– 26.4
617.5
– 39.7
– 374.0
– 8.5
– 43.7
58.6
– 407.3
– 26.4
– 410.5
– 26.7
– 39.8
26.4
– 477.0
Cash flows
in millions of EUR
Distributions
2013
– 217.2
2012
– 185.5
Changes in receivables from / liabilities to family trusts
and the Würth family including interest income
Capital contribution
Increase in financial liabilities
Decrease in financial liabilities
Interest payments / income from financing activities
Increase in majority shareholdings
Cash flow from financing activities
Changes due to consolidation (mainly due to exchange differences)
Changes in cash and cash equivalents
– 84.7
152.2
580.5
– 394.5
– 57.7
– 1.6
– 23.0
8.3
176.7
– 5.6
111.0
174.1
– 451.4
– 73.4
0.0
– 430.8
– 5.4
– 295.7
2013
68.1
3.1
1.9
676.1
0.0
749.2
2012
0.4
2.8
2.4
565.9
1.0
572.5
Composition of cash and cash equivalents
in millions of EUR
Short-term investments
Other cash equivalents
Cash on hand
Bank balances
Cash from assets classified as held for sale
Change
in millions of EUR
67.7
0.3
– 0.5
110.2
– 1.0
176.7
* Reference to “J. Notes to the consolidated statement of cash flows”
** Reference to “C. Consolidated group”
85
OF CHANGES IN EQUITY
Equity attributable to parent companies in the Group
Reserves
in millions of EUR
1 January 2012
Capital increase / reduction
Transfer to / drawings from reserves
Distributions
Acquisition of shares in parent companies
Other income and expense
recognized in equity
31 December 2012
Capital increase / reduction
Transfer to / drawings from reserves
Distributions
Acquisition of majority shareholdings
Other income and expense
recognized in equity
31 December 2013
86
Share
capital
474.5
0.0
0.0
0.0
2.0
0.0
0.0
– 0.1
Differences
from
currency
translation
– 39.6
0.0
1.5
1.5
0.0
0.0
0.0
0.0
Other
reserves
1,189.7
0.0
– 33.8
– 33.8
108.3
30.2
0.0
– 5.4
Retained
earnings
1,371.8
267.3
0.0
267.3
0.0
– 30.2
– 180.7
– 4.0
0.0
476.4
0.0
0.0
0.0
– 104.0
0.0
0.0
0.0
– 0.9
– 39.0
0.0
– 58.4
– 58.4
0.0
0.0
0.0
0.0
– 0.4
1,288.6
0.0
7.1
7.1
128.7
44.5
0.0
– 1.7
0.0
372.4
0.8
– 96.6
– 0.1
1,467.1
Total
2,996.4
267.3
– 32.3
235.0
110.3
0.0
– 180.7
– 9.5
Noncontrolling
interests
45.2
11.6
– 0.5
11.1
0.7
0.0
– 4.8
0.0
Total
Equity
3,041.6
278.9
– 32.8
246.1
111.0
0.0
– 185.5
– 9.5
0.9
1,425.1
295.3
0.0
295.3
127.3
– 44.5
– 210.3
0.0
– 0.4
3,151.1
295.3
– 51.3
244.0
152.0
0.0
– 210.3
– 1.7
0.8
53.0
14.1
– 0.5
13.6
0.2
0.0
– 6.9
3.5
0.4
3,204.1
309.4
– 51.8
257.6
152.2
0.0
– 217.2
1.8
– 0.7
1,592.2
0.0
3,335.1
0.0
63.4
0.0
3,398.5
CONSOLIDATED VALUE
ADDED STATEMENT*
Origin of value added
in millions of EUR
Sales
Changes in inventories and own work capitalized for capital expenditure
Other operating income
Finance revenue
2013
9,745.1
8.6
86.1
50.3
9,890.1
2012
9,984.7
– 28.3
91.8
50.9
10,099.1
Change
%
–2.4
<– 100.0
– 6.2
– 1.2
– 2.1
4,685.3
1,623.0
303.2
6,611.5
4,858.7
1,671.0
314.0
6,843.7
– 3.6
– 2.9
– 3.4
– 3.4
Value added
3,278.6
3,255.4
0.7
Utilization
in millions of EUR
Employees (personnel expenses)
Public sector (tax expenses)
Entities
Equity holders**
Lenders
Value added
2013
2,733.7
104.5
244.4
65.0
131.0
3,278.6
2012
2,756.1
107.8
204.4
74.5
112.6
3,255.4
Change
%
– 0.8
– 3.1
19.6
– 12.8
16.3
0.7
Less advance payments
Cost of materials and cost of financial services
* Not part of the consolidated financial statements in accordance with IFRSs (unaudited)
**Distributions net of contribution to capital
87
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
A. General information
The headquarters of the Würth Group are located in 74650 Künzelsau, Germany.
The core business of the Würth Group involves trade in fastening and assembly materials worldwide. The companies that
make up the Würth Group’s active sales operations are divided into two operational units: Würth Line and Allied Companies.
Würth Line operations focus on fastening and assembly materials, supplying customers in the trades, the construction sector,
and industry. The sales portfolio of the Würth Line comprises products sold under its own brand name and by its own sales
organization. Its main business activity is the sale of screws, screw accessories, standard / DIN parts, chemical-technical
products, furniture and iron fittings, dowels, insulation, hand tools, power tools, cutting and pneumatic tools, service and
care products, connecting and fastening materials, stocking and picking systems as well as the direct mailing of workwear.
The Allied Companies, which either operate in business areas adjacent to the core business or in diversified business
areas, round off the Würth Group’s portfolio. They are divided into nine strategic business units.With the exception of a
small number of manufacturing companies, the majority are sales companies operating in related areas. The Diversification unit within the Allied Companies comprises service companies, such as hotels, restaurants and logistics operators.
B. Adoption of International Financial Reporting Standards
Statement of compliance
The consolidated financial statements of the Würth Group were prepared according to the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), London, as adopted by the EU,
the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB [“Handelsgesetzbuch”: German
Commercial Code] and full IFRS. The consolidated financial statements consist of the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash
flows, consolidated statement of changes in equity and notes to the consolidated financial statements. The Group management report has been prepared in accordance with Sec. 315 HGB.
Basis of preparation
All IFRSs whose adoption is mandatory as of 31 December 2013 have been applied. This also includes the International
Accounting Standards (IASs) as well as the interpretations issued by the IFRS Interpretations Committee (formerly: IFRIC)
and the Standing Interpretations Committee (SIC).
The financial statements have been prepared on the basis of historical cost, with the exception of financial assets at fair
value through profit or loss and available-for-sale financial assets, which are measured at fair value without effect on
profit or loss.
88
The consolidated financial statements have been prepared in euro. All figures are reported in millions of euro (EUR) unless
otherwise indicated.
The items in the statement of financial position have been classified into current and non-current assets and liabilities in
accordance with IFRSs. Items not due within a year are disclosed as non-current assets or non-current liabilities. In addition, deferred taxes are disclosed as non-current assets or liabilities.
The consolidated income statement has been prepared using the nature of expense method.
The consolidated financial statements were authorized by the Central Managing Board of the Würth Group on 14 March
2014 for issue to the audit committee of the Würth Group’s Advisory Board.
Use of estimates and judgments
The preparation of the consolidated financial statements pursuant to IFRSs requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities and other
financial obligations as of the reporting date and the reported amounts of income and expenses during the reporting
period. The assumptions and estimates are based primarily on Group-wide regulations governing useful lives, accounting
policies for capitalized development costs and provisions, the probability of future tax relief being realized from deferred
tax assets and on the assumptions regarding the future earnings power of cash-generating units. Actual amounts in future
periods may differ from the estimates. Changes are recognized in income as and when better information is available.
The key assumptions concerning the future and other key sources of estimation uncertainty as of the reporting date which
entail a risk of causing a material adjustment to the carrying amounts of assets and liabilities in the following fiscal year
are discussed below.
a) Impairment of goodwill
The Würth Group tests goodwill for impairment at least once a year. This involves an estimate of the net selling price of the
cash-generating units to which the goodwill is allocated. The cash-generating units are determined on the basis of the
lowest level used to monitor goodwill for internal purposes by management making decisions on business combinations.
In the Würth Group this is the legal entity, with the exception of Dinol and Diffutherm, which are considered to be a reporting unit. As of 31 December 2013 the carrying amount of goodwill totaled EUR 58.4 million (2012: EUR 70.5 million).
Further details are presented in the notes to the consolidated statement of financial position under [9] “Intangible assets
including goodwill”.
b) Impairment of intangible assets and property, plant and equipment
The Würth Group tests intangible assets and property, plant and equipment for impairment if events or changes in circumstances suggest that it may not be possible to recover the carrying amount of an asset. The intrinsic value is calculated by
comparing the carrying amount of the individual assets with their recoverable amount. The recoverable amount is either
the value in use or the fair value, whichever is higher, less the cost of sale. The value in use is the amount calculated by
89
discounting the estimated future cash flows. If an asset does not generate any cash inflows that are largely independent
of the cash inflows generated by other asset groups, the impairment test is not carried out at the level of an individual
asset, but at the level of the cash-generating unit.
c) Unused tax losses and temporary differences
Deferred tax assets are recognized for all unused tax losses and temporary differences to the extent that it is probable
that taxable profit will be available against which the losses can be utilized. Significant management judgment is required
to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future
taxable profits together with future tax planning strategies. Unused tax losses and temporary differences are considered
recoverable only if they are likely to be used within the next five years. Deferred tax assets recognized on unused tax
losses amount to EUR 37.9 million as of 31 December 2013 (2012: EUR 57.1 million).
d) Obligations from post-employment benefits
The cost of defined benefit pension plans and other post-employment medical benefits and the present value of the
pension obligations are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate, future salary increases, mortality rates and future pension
increases. Due to the complexity of the valuation, the underlying assumptions and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate, management considers the interest rates of corporate bonds in their respective
currencies with at least an AA rating or above, and extrapolated maturity corresponding to the expected duration of the
defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit spreads
are excluded from the analysis of bonds from which the discount rate is derived, on the basis that they do not represent
high quality bonds. The mortality rate is based on publicly available mortality tables for the specific country. Future salary
increases and pension increases are based on expected future inflation rates for the respective country. The net carrying
amounts of the obligations from post-employment benefits amount to EUR 186.1 million as of 31 December 2013
(2012: EUR 194.4 million). Further details are presented in the notes to the consolidated statement of financial position
under [25] “Obligations from post-employment benefits”. All parameters are reviewed annually.
e) Securities
Financial assets for which there is no active market were measured on the basis of the expected cash flows discounted
at a rate that reflects the terms and risks involved. This measurement is subject to estimation uncertainty because it is
most sensitive to the discount rates used in the discounted cash flow method as well as the expected future cash inflows.
The fair value of these financial assets totaled EUR 66.0 million as of 31 December 2013 (2012: EUR 53.8 million).
f) Development costs
Development costs are capitalized in accordance with the accounting policies presented in section F. Initial recognition of
development costs is based on an assessment by management that the development is both technically and economically
feasible. Generally, this is the case if a product development project has reached a certain milestone within an existing
project management model. In determining the amounts to be capitalized management makes assumptions regarding the
expected future cash generation of the assets, discount rates to be applied and the expected period of benefits. As of
31 December 2013, the carrying amount of capitalized development costs was EUR 22.4 million (2012: EUR 4.5 million).
90
g) Receivables
To determine specific allowances, receivables that could potentially be impaired are assessed for impairment and valuation allowances applied where appropriate. The calculation of valuation allowances on receivables is based primarily
on assessments and analyses performed by the local management. In addition to the creditworthiness of, and default on
payment by, the customer in question, historical default rates are also taken into account. Effects of new accounting standards
The accounting policies adopted are consistent with those of the prior fiscal year, except that the Group has adopted
the new / revised standards and interpretations set out below that are mandatory for fiscal years beginning on or after
1 January 2013. The changes in accounting policies and in the disclosures in the notes are due primarily to adoption of:
• IFRS 1 “First-Time Adoption of International Financial Reporting Standards – Government Loans
(amended)”
• I FRS 7 “Offsetting of Financial Assets and Financial Liabilities”
• IFRS 10 “Consolidated Financial Statements”, IAS 27 “Separate Financial Statements”
• IFRS 11 “Joint Arrangements”, IAS 28 “Investments in Associates and Joint Ventures”
• IFRS 12 “Disclosure of Interests in Other Entities”
• IFRS 13 “Fair Value Measurement”
• IAS 1 “Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income“
• IAS 19 “Employee Benefits (revised 2011)”
• IAS 19 “Employee Contributions“
• Improvements to IFRSs 2009-2011
- IFRS 1 – Repeated application of IFRS 1
- IFRS 1 – Borrowing costs
- IAS 1 – Clarification of requirements for comparative information
- IAS 16 – Classification of servicing equipment
- IAS 32 – Tax effect of distribution to holders of equity instruments
- IAS 34 – Interim financial reporting and segment information for total segment assets
The adoption of these standards or interpretations is described below:
IFRS 1 “First-Time Adoption of International Financial Reporting Standards”: This improvement clarifies that an
entity that stopped applying IFRS in the past and chooses, or is required, to apply IFRS, has the option to re-apply IFRS 1.
If IFRS 1 is not re-applied, an entity must retrospectively restate its financial statements as if it had never stopped applying IFRS.
This amendment to IFRS 7 “Offsetting of Financial Assets and Financial Liabilities” requires entities to disclose
information about rights to set off and related arrangements (e.g. collateral arrangements). The disclosures are intended
to provide users of an entity’s financial statements with information that is useful in evaluating the effect of netting arrangements on an entity’s financial position. The new disclosures are required for all recognized financial instruments that
are set off in accordance with IAS 32 “Financial Instruments: Presentation”. The disclosures also apply to recognized
financial instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are set off in accordance with IAS 32. These amendments will not have any effect on
the Würth Group’s net assets, financial position and results of operations, and become effective for fiscal years
beginning on or after 1 January 2013.
91
IFRS 10 “Consolidated Financial Statements” and IAS 27 “Separate Financial Statements” replace
the portion of the previous IAS 27 “Consolidated and Separate Financial Statements” that addressed accounting
for consolidated financial statements. It also includes the issues previously regulated in SIC-12 “Consolidation –
Special Purpose Entities”. IFRS 10 establishes a single control model that applies to all entities including special
purpose entities. The changes introduced by IFRS 10 will require management to exercise significant judgment to
determine which entities are controlled, and therefore, are required to be consolidated by a parent. This did not,
however, have any significant effect on the Würth Group. The standard is mandatory, for the first time, for fiscal
years beginning on or after 1 January 2013.
As a consequence of the new IFRS 11 “Joint Arrangements” and IFRS 12, IAS 28 has been renamed “Investments in Associates and Joint Ventures (revised 2011)”, and extends the scope of application of the equity
method, which was previously limited to associates, to cover investments in joint ventures. The amendment was
issued in May 2011 and becomes effective for fiscal years beginning on or after 1 January 2013. First-time adoption did not have any significant effects on the consolidated financial statements of the Würth Group.
IFRS 12 “Disclosure of Interests in Other Entities” includes all of the disclosures that were previously in
IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously included in IAS 31 and IAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements,
associates and structured entities. A number of new disclosures are also required, but have no effect on the
Würth Group’s consolidated financial statements. The standard is mandatory for fiscal years beginning on or
after 1 January 2013.
IFRS 13 “Fair Value Measurement” establishes a single source of guidance for fair value measurements. The
standard does not specify when an entity is required to use fair value for its assets and liabilities, but rather only
provides guidance on how to properly measure fair value under IFRS. IFRS 13 defines the fair value as the exit
price. IFRS 13 also defines further disclosure requirements. The application of IFRS 13 does not have any major
impact on fair value measurement within the Würth Group. The required disclosures can be found in the disclosures in the notes for the individual assets and liabilities whose fair value has been calculated. The standard is
mandatory for fiscal years beginning on or after 1 January 2013.
The amendment to IAS 1 “Presentation of Financial Statements – Presentation of Items of Other
Comprehensive Income” requires the regrouping of items belonging to other comprehensive income. Items to
be reclassified to the income statement in subsequent reporting periods (known as “recycling“) (including losses
or gains from the disposal of available-for-sale financial assets) are to be reported separately from items that are
not to be reclassified. The amendments only relate to presentation and have no impact on the net assets, financial
position or results of operations of the Würth Group.
The IASB published IAS 19 “Employee Benefits (revised 2011)” in June 2011. The amendments are effective for
the first time for fiscal years beginning on or after 1 January 2013. The Würth Group has, however, adopted this
standard early for fiscal year 2012.
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The amendment to IAS 19 “Employee Contributions” was published in November 2013 and is to be applied,
for the first time, to fiscal years starting on or after 1 July 2014. The amendment relates to the statement of contributions made by employees or third party to the pension plan as a reduction of the service cost, insofar as they
reflect the payments made in the reporting period. The amendment is to be applied retroactively and does not
have any impact on the net assets, financial position or results of operations of the Würth Group.
Improvements to IFRSs 2009-2011
In May 2012, the IASB issued an omnibus of amendments to its standards, primarily with a view to removing inconsistencies and clarifying wording. There are separate transitional provisions for each amended standard. The adoption of the
following amendments resulted in changes to accounting policies but did not have any effect on the net assets, financial
position and results of operations of the Würth Group, as the amendments apply to scenarios that do not apply in the
Würth Group.
IFRS 1 “Borrowing costs”; Entities adopting the IFRSs for the first time can opt to apply the provisions governing borrowing costs set out in IAS 23, in particular the obligation to capitalize borrowing costs on qualifying assets, either from the
time of transition to the IFRSs or at an earlier point in time. The provision set out in IAS 23 must, however, be adhered to at
the time the IFRSs are adopted at the latest.
IAS 1 “Presentation of Financial Statements”: This clarifies the distinction between the additional comparative information that may be presented and the minimum comparative information that is required, generally covering the prior
reporting period.
IAS 16 “Property, Plant and Equipment”: This clarifies which spare parts and servicing equipment qualify as property,
plant and equipment and are not treated as inventories.
IAS 32 “Financial Instruments: Presentation”: This clarifies that income taxes on distributions to bearers of equity instruments fall under the scope of IAS 12 “Income Taxes”.
IAS 34 “Interim Financial Reporting”: Contains a provision reconciling the disclosures on segment assets with the disclosures on segment liabilities in interim financial statements and the reconciliation of disclosures in the interim reporting
with the disclosures in the annual financial statements.
The amendments from this project are effective for fiscal years beginning on or after 1 January 2013.
Published standards endorsed by the EU in the comitology procedure that are not yet effective.
Standards issued but not yet effective by the date of issuance of the consolidated financial statements of the Würth Group
are listed below. This listing of standards and interpretations issued are those that the Würth Group reasonably expects
to have an effect on disclosures, net assets, financial position and results of operations when applied at a future date. The
Würth Group intends to adopt those standards when they become effective.
IFRS 9 “Financial Instruments: Classification and Measurement” as issued reflects the first phase of the IASB’s work
on the replacement of IAS 39 “Financial Instruments: Recognition and Measurement” and applies to the classification and
measurement of financial assets and financial liabilities as defined in IAS 39. This standard is mandatory, for the first time,
for fiscal years beginning on or after 1 January 2013. Amendments to IFRS 9 “Mandatory Effective Date of IFRS 9 and
Transition Disclosures”, issued in December 2011, moved the mandatory effective date to 1 January 2015. In subsequent
phases, the IASB will address hedge accounting and the impairment of financial assets. The adoption of the first phase
of IFRS 9 will have an effect on the classification and measurement of the Würth Group’s financial assets, but will not have
93
an effect on classification and measurement of financial liabilities. The Würth Group will quantify the effect in conjunction
with the other phases, when the final standard including all phases is issued.
The amendment for investment companies (amendment to IFRS 10, IFRS 12 und IAS 27) applies to fiscal years
beginning on or after 1 January 2014 and exempt companies that meet the definition criteria of an investment company
set out in IFRS 10 from the consolidation requirement. Instead, the investment companies have to state the interests in their
subsidiaries at fair value through profit or loss in the future. This amendment is irrelevant to the Würth Group, as none of
the Würth Group companies fulfils the criteria for definition as an investment company pursuant to IFRS 10.
The amendments to IAS 32 “Offsetting Financial Assets and Financial Liabilities” clarify the meaning of “currently
has a legally enforceable right to set off” and the application of offsetting criteria to gross settlement systems at clearing
houses. The amendment is effective for the first time for fiscal years beginning on or after 1 January 2014. This amendment
is not expected to have any effects on the consolidated financial statements of the Würth Group.
The amendment to IAS 36 “Recoverable Amount Disclosures for Non-Financial Assets” resolves the unplanned implications of IFRS 13 for the disclosure requirements pursuant to IAS 36. Furthermore, the amendment requires the disclosure
of a recoverable amount for assets or cash-generating units for which impairments or reversals of impairment losses were
stated during the year. The amendment applies with retroactive effect to fiscal years beginning on or after 1 January 2013
and will not have any effect on the consolidated financial statements of the Würth Group.
The amendment to IAS 39 “Novation of Derivatives and Continuation of Hedge Accounting” allows, under certain circumstances, the continuation of hedge accounting in cases in which derivatives designed as hedging instruments
are transferred to a central clearing house on the basis of statutory and supervisory law provisions (novation). The
amendment is effective for the first time for fiscal years beginning on or after 1 January 2014. The Würth Group did not
perform any novation of its derivatives in the period under review and generally recognizes derivatives not as hedging
instruments, but at fair value through profit or loss. This amendment will, however, be applied to future novation.
The interpretation IFRIC 21 “Levies” states that companies operating on particular markets have to state a liability for
the levies to be paid to the authorities responsible for this market if the business activities causing the levy in question are
performed. In the case of levies that depend on a minimum volume being reached, for example, the interpretation makes
it clear that a debt can only be carried as a liability once this minimum volume has been reached. The interpretation is
effective for the first time for fiscal years beginning on or after 1 January 2014. The Würth Group does not expect the
application of IFRIC 21 to have any significant effect on the consolidated financial statements.
Improvements 2010-2012
• IFRS 2 “Share-based Payment”; definition of “exercise conditions”
• I FRS 3 “Business Combinations”; reporting of conditional consideration in connection with a business combination
• I FRS 8 “Operating Segments”; transfer of all of the reportable assets of the operating segment to the company
assets
• IFRS 13 “Fair Value Measurement”; current receivables and liabilities
• IAS 16 “Property, Plant and Equipment”; revaluation method – proportionate restatement of accumulated depreciation
• I AS 24 “Related Party Disclosures”; members of the company management.
• IAS 38 “Intangible assets”; revaluation method – proportionate restatement of accumulated depreciation
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Improvements 2011-2013
• IFRS 1 “First-Time Adoption of International Financial Reporting Standards (amending only the Basis for
Conclusions)”; meaning of “effective” in respect of the IFRSs
• IFRS 3 “Business Combinations”; scope of application of the exceptions for joint ventures
• IFRS 13 “Fair Value Measurement”; scope of paragraph 52 (exception for portfolios)
• IAS 40 “Investment Property”; clarifying the interrelationship of IFRS 3 and IAS 40 when classifying property as
investment property or owner-occupied property
The IASB published the final amendments resulting from the issues discussed in this cycle in December 2013.
The Würth Group is currently assessing the effect on the consolidated financial statements.
C. Consolidated group
The consolidated financial statements of the Würth Group include parent companies at the same organizational level as
well as all domestic and foreign entities in which the parent companies at the same organizational level hold a majority
of the voting rights, either directly or indirectly, and thus have the possibility to exercise control over these entities. The
parent companies – and hence the entire Würth Group – are subject to common control by the Central Managing Board.
The consolidated group is therefore based on the Würth Group’s uniform ownership, organizational and management
structure, as only this presentation gives a true and fair view of the Würth Group. Determining the consolidated group in
accordance with IAS 27 / IFRS 10 would not give a true and fair value of the net assets, financial position and results
of operations because transactions between the subgroups thereby created would not be presented fairly. In this case,
the subgroups would provide an incomplete and misleading presentation of the economic and financial conditions of the
Würth Group regarding practically every item of the consolidated financial statements.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Würth Group obtains control,
and continue to be consolidated until the date that such control by the parent ceases.
The cost of subsidiaries and business operations acquired comprises the consideration transferred plus any non-controlling
interests.
The major changes to the consolidated group in comparison to the prior year on account of acquisitions are as follows:
As of 1 January 2013, the Würth Group acquired 100% of the shares and the voting rights in Chemofast Anchoring
GmbH, Willich, Germany. The company develops and produces chemical mortars, known as “chemical anchors”, and
markets these very successfully to its private-label customers in the construction and retail industries.
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Chemofast Anchoring GmbH, Willich, Germany:
Acquisition-date
fair value
Previous carrying
amount
11.9
6.9
3.0
1.9
0.3
3.6
4.3
0.3
3.6
35.8
–
–
2.8
1.9
0.3
3.6
4.3
0.3
3.6
16.8
Total identifiable net assets
2.9
1.7
0.9
0.8
3.9
0.7
10.9
24.9
2.9
1.7
0.9
0.8
0.2
0.7
7.2
9.6
Goodwill arising from the business combination
Consideration transferred
8.8
33.7
Transaction costs
Cash acquired with the subsidiary
Net cash outflow
0.7
3.6
30.8
in millions of EUR
Assets
Customer relationships
Recipes
Land
Technical equipment and machines
Other non-current assets
Inventories
Trade receivables
Other assets
Liabilities
Trade payables
Provisions
Deferred tax liabilities
Other liabilities
Since the acquisition date, the entity has contributed EUR 22.3 million to sales. Net income for the year came in at EUR 1.6
million.
The following acquisitions were also made:
As of 1 September 2013, the Würth Group acquired 90% of the shares and voting rights in YOUR OWN BRAND GmbH,
Neutraubling, Germany, including the latter’s subsidiaries YOUR OWN BRAND UK Ltd., Cheddar, UK and Your Own
Brand S.R.L, Milan, Italy. The company specializes in body and hair care products and designs and distributes brands
and branded goods for customers from the discount, chemist and food retail sectors.
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Also with effect from 1 September 2013, the Würth Group acquired 75% of the shares and voting rights in Kemacos Full
Filling Service GmbH, Kematen in Tyrol, Austria, as well as 75% of the shares and voting rights in CC-Czech Liegenschaftsverwaltungs GmbH, Kematen in Tyrol, Austria. As a result of a subsequent unilateral capital increase, the interest
was increased to 100% in accordance with the contractual provisions. Kemacos Full Filling Service GmbH is responsible
for the development and manufacture of cosmetics products for body and hair care and for oral hygiene.
The Würth Group acquired 100% of the shares and voting rights in Ares Oy Nikotips, Espoo, Finland, as of 22 February
2013. Ares Oy is involved in the wholesale business for rubber, plastic and polyurethane products.
On 11 July 2013, the Würth Group acquired 100% of the shares and voting rights in the property company Bontilat
Oy, Imatra, Finland. The company was then merged with Würth Oy, Riihimäki, Finland.
in millions of EUR
Assets
Intangible assets
Other non-current assets
Inventories
Receivables and other assets
Shares held by other shareholders
Current liabilities
Purchase prices
Pro rata sales
Share of profit / loss
Pro forma sales in 2013
Pro forma profit / loss in 2013
Your Own
Brand
Group
Kemacos Full
Filling Service
GmbH
Ares Oy
Nikotips
Other
Total
6.0
0.3
6.5
3.1
0.2
16.1
1.6
4.3
2.5
3.4
0.1
11.9
6.8
0.2
2.5
1.4
0.3
11.2
0.5
6.0
1.8
0.1
0.0
8.4
14.9
10.8
13.3
8.0
0.6
47.6
– 0.3
3.0
6.6
9.3
6.8
12.3
– 0.1
41.8
0.2
0.0
7.9
4.0
11.9
0.0
5.0
– 0.4
15.8
– 4.0
0.0
3.6
1.1
4.7
6.5
9.1
0.6
10.9
0.9
0.0
4.8
2.2
7.0
1.4
5.6
– 0.5
5.6
– 0.5
– 0.3
19.3
13.9
32.9
14.7
32.0
– 0.4
74.1
– 3.4
The other acquisitions relate mainly to the Alufer Group, Elgeta, Spain and SVH24-de GmbH, Dortmund, Germany.
In the past fiscal year, an amount of EUR 21.6 million (2012: EUR 27.7 million) was recognized as expenses from the
amortization, depreciation and impairment of assets identified in the course of purchase price allocation for business combinations from prior years.
After the Würth Solar Group ceased operations, Creotec GmbH, Freiburg, Germany and SolarMarkt GmbH, Aarau, Switzerland were sold in fiscal year 2013. The business operations of SolarMarkt Freiburg, Germany and Session Solar, USA
were also sold.
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D. Consolidation principles
The consolidated financial statements are based on the financial statements of the parent companies and subsidiaries
included in the Group as of 31 December 2013, which have been prepared according to uniform standards.
Acquisition accounting is performed using the acquisition method in accordance with IFRS 3 (revised).Accordingly, the
consideration transferred to the seller plus any non-controlling interests and the fair value of the previously held equity
interests in the acquiree are offset against the fair value of the acquired assets and liabilities on the acquisition date. Any
remaining debit differences are accounted for as goodwill. Any remaining credit differences are posted to profit or loss.
Any contingent consideration is recognized at acquisition-date fair value. Subsequent changes to the fair value of the
contingent consideration which is deemed to be an asset or liability will be recognized in accordance with IAS 39 either in
profit or loss or as a change to other comprehensive income. If the contingent consideration is classified as equity, it is not
remeasured and its subsequent settlement is accounted for within equity. Business combinations achieved in stages where
the Group already has control or disposals of shares without a loss of control are recognized directly in equity from fiscal
year 2010 onwards.
In the case of business combinations achieved in stages that give rise to control over an entity, or in the case of disposals
of shares which result in a loss of control, the previously held or remaining equity interests are remeasured at fair value
through profit or loss.
A change in the ownership interest of a subsidiary without involving the loss of control is accounted for as an equity
transaction. Transactions under common control are recognized using the pooling-of-interest method. Under this method,
any gains or losses on disposal lacking commercial substance are offset directly in equity in the reserves. The same
accounting policies are used to determine the Group’s share in equity of all companies accounted for using the equity
method. Receivables and liabilities between the consolidated entities are netted. Intercompany profits in inventories and
non-current assets are eliminated in the consolidated income statement. Intercompany sales and other intercompany
income are netted against the corresponding expense. Deferred tax is recognized for consolidation transactions that are
recognized in profit or loss.
Non-controlling interests represent the portion of profit or loss and net assets not attributable to the equity holders of the
parent companies in the Group. Non-controlling interests are presented separately in the consolidated income statement
and the consolidated statement of financial position. In the consolidated statement of financial position, non-controlling
interests are disclosed in equity, separately from the equity attributable to the parent companies in the Group.
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E. Foreign currency translation
In the separate financial statements of the entities, non-monetary and monetary items denominated in foreign currency
are recognized at the rate prevailing when they were first recorded. Monetary items are translated at the exchange rate
on the reporting date. Any exchange rate gains generated and losses incurred as of the reporting date from the measurement of monetary assets and monetary liabilities denominated in foreign currency are recognized through profit or loss in
finance revenue and finance costs respectively.
The functional currency method is used to translate the financial statements of foreign entities. In the consolidated financial
statements, except for equity, the items of the statement of financial position of all foreign entities are translated to the euro
at closing rates, as the significant Group entities included in the consolidated financial statements conduct their business
independently in their local currency, which is the functional currency. Differences compared to the prior-year translation
are offset against reserves directly in equity (other comprehensive income). Goodwill is translated at the closing rate as an
asset of foreign entities.
Income and expense items are translated using average rates. Differences compared to the closing rate are also recognized
directly in equity.
The financial statements of the major subsidiaries in countries outside the European Monetary Union were translated to the
euro using the following exchange rates:
1 US dollar
1 pound sterling
1 Canadian dollar
1 Australian dollar
1 Brazilian real
1 Chinese renminbi yuan
1 Danish krone
1 Norwegian krone
1 Polish zloty
1 Russian rouble
1 Swedish krona
1 Swiss franc
1 Czech koruna
1 Hungarian forint
Average exchange rates
for the fiscal year
2013
2012
0.75382
0.77891
1.17770
1.23243
0.73133
0.77887
0.73016
0.80667
0.35210
0.39892
0.12250
0.12300
0.13409
0.13434
0.12824
0.13377
0.23818
0.23886
0.02361
0.02504
0.11566
0.11485
0.81230
0.82970
0.03843
0.03979
0.00337
0.00346
Closing rates
on the reporting date
2013
2012
0.72632
0.75855
1.20149
1.22639
0.68222
0.76254
0.64775
0.78666
0.30711
0.37102
0.11989
0.12178
0.13406
0.13405
0.11943
0.13581
0.24105
0.24433
0.02205
0.02488
0.11318
0.11649
0.81539
0.82836
0.03649
0.03981
0.00337
0.00341
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F. Accounting policies
The Würth Group uses transaction date accounting. The financial statements of all consolidated companies have been
prepared in line with uniform accounting policies for the Group (IFRSs).
Goodwill arising from a business combination is initially measured at cost, which is the excess of the cost of the business
combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities
acquired. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Recognized goodwill is tested for impairment on an annual basis and when there is any indication that it may be impaired.
The impairment test for goodwill is effected at the level of the cash-generating unit. The cash-generating unit is defined as
the legal entity, with the exception of Diffutherm and Dinol.
The impairment loss is determined by calculating the recoverable amount of the cash-generating unit to which goodwill
relates. If the recoverable amount of the cash-generating unit is lower than its carrying amount, an impairment loss is
recorded.
Intangible assets acquired separately are initially measured at cost. The cost of an intangible asset acquired in a business
combination is its acquisition-date fair value. Following initial recognition, intangible assets are carried at cost less any
accumulated amortization and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite.
Intangible assets with finite lives are amortized over their useful life using the straight-line method and tested for impairment
whenever there is any indication that the intangible asset may be impaired. The useful life and the amortization method
for an intangible asset with a finite useful life are reviewed at least at each fiscal year end. The necessary changes in the
amortization method and the useful life are treated as changes to estimates. Amortization of intangible assets with a finite
useful life is reported in the consolidated income statement under amortization and depreciation. Capitalized customer
relationships, software, franchises and other licenses are amortized over a useful life of three to fifteen years.
Intangible assets with an indefinite useful life and intangible assets that are not ready for use are tested for impairment
individually at least once a year. Such intangibles are not amortized. The useful life of an intangible asset with an indefinite
life is reviewed annually to determine whether the indefinite life assessment continues to be supportable.
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If all prerequisites of IAS 38.57 are met, internally generated intangible assets are reported at the amount of the directly
attributable development costs incurred. Capitalization ceases when the asset is finished and released. Pursuant to
IAS 38.57 development costs may only be capitalized if an entity can demonstrate that all of the following six requirements
are satisfied:
1. The technical feasibility of completing the asset so that it will be available for use or sale
2. The intention to complete the intangible asset and use or sell it
3. The ability to use or to sell the intangible asset
4. How the intangible asset will generate probable future economic benefits
5. The availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset
6. T he ability to measure reliably the expenditure attributable to the intangible asset during its development
The Würth Group estimated the customary useful life of the recognized internally generated intangible assets to be
three years.
Costs of research and general development are immediately recorded as an expense in accordance with IAS 38.54.
Property, plant and equipment are stated at amortized cost. Repair costs are expensed immediately. Costs of conversion contain directly allocable costs (such as direct materials and labor) and fixed and variable production overheads
(such as materials and production overheads) including appropriate depreciation of the production plant based on ordinary capacity utilization. Borrowing costs are capitalized provided the requirements for a qualifying asset are met. Except
for land and land rights, property, plant and equipment are generally depreciated using the straight-line method unless
a different depreciation method better reflects the pattern of consumption.
Depreciation is computed according to the following uniform Group useful lives:
Buildings
Furniture and fixtures
Technical equipment and machines
25 – 40 years
3 – 10 years
5 – 15 years
An item of property, plant and equipment leased under a finance lease is recognized at fair value or the lower present
value of the minimum lease payments and depreciated over the expected useful life or the contractual term, whichever is
shorter. Payment obligations resulting from the lease payments are recorded as a liability at their present value.
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The residual values of the assets, useful lives and depreciation methods are reviewed at the end of each fiscal year and
adjusted if necessary.
An item of property, plant and equipment or an intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on disposal of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated income
statement in the year the asset is derecognized.
An impairment test is performed at the end of the fiscal year for all intangible assets and property, plant and equipment
if events or changes in circumstances indicate that the carrying amount of the assets exceeds their recoverable amount
or if an annual impairment test is required. If the recoverable amount of the asset falls short of the carrying amount, an
impairment loss is recognized. The recoverable amount is the higher of an asset’s net selling price and its value in use. The
net selling price is the amount obtainable from the sale of an asset in an arm’s length transaction less the costs necessary
to make the sale. Value in use is the present value of estimated future cash flows expected to arise from the continuing use
of an asset and from its disposal at the end of its useful life.
The recoverable amount is determined for each asset individually or, if that is not possible, for the cash-generating unit.
Impairment losses recognized for an asset in profit or loss in prior years are reversed when there is any indication that the
impairment no longer exists or has decreased. Any reversal is posted to profit or loss. A reinstatement or reversal of the
impairment loss recorded on an asset cannot, however, exceed the amortized cost that would have been recognized
without the impairment. Impairment losses recognized on goodwill are not reversed.
Financial assets are divided into the following categories: (a) held-to-maturity financial assets, (b) financial assets at fair
value through profit or loss, (c) available-for-sale financial assets, and (d) loans and receivables originated by the entity.
Financial assets with fixed or determinable payments and fixed maturity that the entity has the positive intention and ability
to hold to maturity, other than loans and receivables originated by the entity, are classified as held-to-maturity investments.
Financial assets classified as “at fair value through profit or loss” are (i) financial assets that are acquired principally for
the purpose of generating a profit from short-term fluctuations in price or exchange rates or (ii) financial assets designated
upon initial recognition as of fair value through profit or loss. All other financial assets apart from loans and receivables
originated by the entity are classified as available-for-sale financial assets.
Held-to-maturity investments are disclosed under non-current assets unless they are due within twelve months of the reporting date. Financial assets held for trading are disclosed under current assets. This does not apply to derivatives that lead
to payments in more than twelve months after the reporting date. They are disclosed under non-current financial assets or
liabilities. Financial assets designated upon initial recognition as of fair value through profit or loss and available-for-sale
financial assets are disclosed as current assets if management intends to sell them within twelve months of the end of the
reporting period. They are recognized at the date when the Würth Group enters into a contract.
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The initial recognition of a financial asset is at cost, which corresponds to the fair value of the consideration given.
Transaction costs are included, except for financial assets designated upon initial recognition as of fair value through
profit or loss or classified as held-for-trading.
Held-to-maturity investments are measured at amortized cost using the effective interest method. If it is likely that financial
assets measured at amortized cost are impaired, the impairment loss is recognized in profit or loss. If an impairment loss
recorded in a prior period decreases and the reversal of the impairment loss (or decrease in the impairment loss) can be
reversed, an asset may not be carried at an amount exceeding the carrying amount that would have been recognized
without the impairment.
Available-for-sale financial assets, financial assets that are classified as held for trading, and financial assets at fair value
through profit or loss are subsequently measured at fair value on the basis of market prices as of the reporting date without
deducting any transaction costs. For financial instruments where there is no active market, fair value is determined using
valuation techniques. Such techniques include using recent arm’s length market transactions, discounted cash flow analysis
or other valuation models.
Gains and losses from measurement of an available-for-sale financial asset at fair value are recognized directly in equity.
Changes in the fair value of financial assets held for trading and financial assets at fair value through profit or loss are
recognized in the net income or loss for the period.
Loans and receivables originated by the entity and not held for trading are recognized at amortized cost.
Any necessary impairment losses are recognized by deducting the amounts directly from the underlying receivables.
Derivative financial instruments are classified as held-for-trading financial assets / financial liabilities, unless they are
included in hedge accounting as hedging instruments. The change in the fair value of the derivative financial instruments is
recognized in the consolidated income statement. The fair value of open derivative financial instruments is disclosed under
other assets / liabilities.
Receivables and liabilities from financial services contain all receivables and liabilities arising from the financial
services business. Bank receivables and loans as well as receivables or loans due from customers are financial investments
with fixed or determinable payments and fixed maturity that are not quoted in an active market. After initial recognition,
receivables and liabilities from financial services are carried at amortized cost using the effective interest method less any
allowance for impairment. Loans in the banking business are tested for impairment. The Würth Group sells receivables
from financial services to factors in asset-backed commercial papers (ABCP) transactions. Notwithstanding the transfer of
title to the receivables from financial services, these must continue to be recognized by the Würth Group where Group
entities retain significant risks and rewards on a contractual basis.
Interest-free and low-interest loans are stated at present value.
103
Deferred taxes result from temporary differences between the IFRS carrying amounts and the tax accounts of the individual entities (except for differences from goodwill arising on the acquisition of shares) and from consolidation entries.
Deferred tax assets also include tax credits that result from the expected utilization of existing loss carryforwards in subsequent years. Deferred tax assets for recognition and measurement differences and for unused tax losses are only taken
into account if they are expected to be realized. Deferred taxes are measured on the basis of the respective local income
tax rates. Deferred tax assets and deferred tax liabilities are offset if a Group entity has a legally enforceable right to
offset current tax assets and current tax liabilities and these relate to income taxes levied by the same taxation authority on
the same taxable entity. Deferred taxes relating to items recognized directly in equity are also posted directly to equity.
Other deferred taxes are posted to the consolidated income statement.
Inventories are stated at costs of purchase or costs of conversion. Costs of conversion contain directly allocable costs
(such as direct materials and labor) and fixed and variable production overheads (such as materials and production
overheads) including appropriate depreciation of the production plant based on ordinary capacity utilization and, in the
case of qualifying assets, borrowing costs.
The carrying amounts are calculated using the weighted average cost method.
Risks inherent in inventories from reduced salability are accounted for by recognizing appropriate write-downs to the
lower of cost or net realizable value.
Payments on account received from customers are recorded as liabilities.
Receivables and other assets are measured at amortized cost. Allowances for impairment are provided for based on
individual risk estimates and past experience of recoverability. To determine specific allowances, financial assets that
could potentially be impaired are grouped together by similar credit risk characteristics and collectively assessed for
impairment. Impairment losses on trade receivables are recognized via a provision for impairment in some cases. The
decision of whether to account for a credit risk by using a provision for impairment or by recognizing a loss directly on
the receivable depends upon the ability to accurately assess the risk involved. On account of the different business fields
and regional conditions, this assessment is at the discretion of the individuals in charge of the respective portfolios.
As a lessor, the Würth Group recognizes finance lease assets as receivables in the statement of financial position equal
to the unsold net investment in the lease. Financial income is recognized to reflect a constant periodic rate of return on the
lessor’s net investment outstanding. Initial direct costs are immediately expensed. Income on unsold contracts is recognized
over the term of the lease.
Securities are classified as financial assets held for trading or designated upon acquisition as financial assets at fair value
through profit or loss and marked to market on the reporting date. Highly liquid securities classified as current assets are
securities due within three months from the date of acquisition. They are reported as short-term investments under cash and
cash equivalents.
Cash and cash equivalents include cash, demand deposits and short-term investments (e.g. money market funds).
104
Non-current assets classified as held for sale and discontinued operations are measured at the lower of carrying
amount and fair value less costs to sell. Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale transaction rather than through continuing use. This condition is regarded as
met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present
condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. In the consolidated income statement of the reporting period,
and of the comparable period of the prior year, income and expenses from discontinued operations are recognized separately from income and expenses from continuing operations and presented as profit / loss after taxes from discontinued operations. Income and expenses from liabilities classified as held for sale that do not constitute discontinued operations are recognized under profit / loss from continuing operations. This presentation also applies when the Würth Group
retains a non-controlling interest in the former subsidiary after the sale. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.
Non-controlling interests include non-controlling interests in share capital, in reserves and in retained earnings unless
they qualify as liabilities within the meaning of IAS 32. If the latter is the case, they are disclosed under financial liabilities
and changes in the fair value are recognized within the financial result.
Post-employment benefit obligations for defined benefit plans are calculated using the projected unit credit method.
Future obligations are measured using actuarial methods. Taking account of dynamic components, the future benefit obligations are spread over the entire period of service. Actuarial calculations and estimates must be obtained for all benefit
plans. Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which they occur in
other comprehensive income. Such actuarial gains and losses are also immediately recognized in revenue reserves and
are not reclassified to profit or loss in subsequent periods.
The defined benefit asset or liability comprises the present value of the defined benefit obligation (using a discount rate
based on high quality corporate bonds, as explained in note 3) and the fair value of plan assets out of which the obligations are to be settled. Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to the Group. Fair value
is based on market price information and, in the case of quoted securities, it is the published bid price. The value of any
defined benefit asset recognized is restricted to the sum of any unrecognized past service costs and the present value of
any economic benefits available in the form of refunds from the plan or reductions in the future contributions to the plan.
In the case of defined contribution plans, the respective entity pays contributions to state or private pension companies
either as required by law or on a voluntary basis. No further payment obligations arise for the company from the payment
of contributions. The amounts are recognized in profit or loss in full.
Provisions are created for all legal or constructive obligations to third parties as of the reporting date which relate to past
events, will probably lead to an outflow of resources in future, and whose amount can be reliably estimated. Provisions are
reviewed at each reporting date and adjusted to reflect the current best estimate. Where the effect of the time value of the
money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the
obligation. In the discounting process, the increase in the provision reflecting the passage of time is recognized as finance
costs. Reversals of provisions are posted against the expense items for which the provisions were set up.
105
When measuring financial liabilities, a distinction is made between
a) financial liabilities held for trading, and
b) other financial liabilities.
Derivative financial instruments are classified as held-for-trading financial liabilities and measured at fair value. However,
an exception is made for derivatives related to non-listed equity instruments whose fair value cannot be reliably determined and that can only be settled through their delivery. These are measured at cost.
Other financial liabilities are measured at amortized cost using the effective interest method, which usually corresponds to
the repayment or settlement value or, in the case of obligations similar to pension obligations, to present value. If non-controlling interests are classified as liabilities within the meaning of IAS 32, they are measured at fair value.
The Würth Group measures financial instruments and non-financial assets at fair value on every reporting date. The fair
value is the price that would be paid, in the event of a due and proper transaction, between market participants on the
calculation cut-off date for the sale of an asset / transfer of a liability. All assets and liabilities for which the fair value is
calculated or is reported in the financial statements are allocated to the fair value hierarchy described below.
Level 1 – Quoted market prices in active markets for identical assets and liabilities.
Level 2 – Valuation techniques for which the lowest level input parameter that is significant to valuation at fair value measurement is directly or indirectly observable.
Level 3 – Valuation techniques for which the lowest level input parameter that is significant to the fair value measurement is
unobservable.
Financial guarantee contracts issued by the Würth Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with
the terms of a debt instrument. These financial guarantee contracts are treated as insurance contracts as defined by IFRS 4,
i.e. the financial guarantee contracts are presented as contingent liabilities until utilization becomes probable. When this is
the case, the corresponding obligation is recognized.
Sales are recognized when it is probable that the economic benefits associated with the transaction will flow to the entity
and the level of sales can be measured reliably. Sales are recorded net of general VAT and any price reductions and
quantity discounts when delivery has taken place and the risks and rewards incidental to ownership have been transferred in full.
Revenue from financial services is recognized when it is realized or realizable and earned. Interest from interest-bearing
assets and liabilities is recognized proportionately over the term of the assets or liabilities concerned using the effective
interest method and taking into account any deferred charges and fees as well as premiums or discounts. Commission is
recognized when there is sufficient evidence that an agreement exists, the performance has been rendered, the fee or
commission has been fixed, and collectability is sufficiently certain.
106
Lease payments under an operating lease are recognized as an expense in the consolidated income statement on a
straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern of the
benefit for the entity as lessee. A lease is classified as an operating lease if the lease does not transfer substantially all risks
and rewards incidental to ownership to the entity.
Finance leases with the Würth Group as lessee, which transfer to the Würth Group substantially all the risks and rewards
incidental to ownership of the leased asset, are capitalized at the commencement of the lease at the fair value of the
leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between
finance charges and a reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance costs are recognized in the income statement. A leased asset is depreciated over the useful life of
the asset. However, if there is no reasonable certainty that the Würth Group will obtain ownership by the end of the lease
term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at
inception date and an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset
or assets or the arrangement conveys a right to use the asset. For arrangements entered into prior to 1 January 2005, the
date of inception is deemed to be 1 January 2005 in accordance with the transitional provisions of IFRIC 4.
Government grants are not recognized until there is reasonable assurance that the entity will comply with the conditions
attached to the grant and that the entity will in fact receive it. Government grants are recognized in profit or loss as scheduled
in line with the related expenses which are subsidized by the grants. If grants are issued for the purchase of property, plant
or equipment, the grants are treated as a reduction of the cost of those assets.
Contingent liabilities are possible or present obligations arising from past events which are not likely to result in an outflow of resources and are thus not recorded in the statement of financial position. The amounts stated correspond to the
potential liability as of the reporting date.
Subsequent events that provide additional information about the situation before the reporting date are reflected in the
statement of financial position, while those which do not lead to adjustments are mentioned in the notes where material.
107
G. Notes to the consolidated income statement
[1] Sales
in millions of EUR
Revenue from the sale of goods and services
Revenue from financial services
Total
2013
9,640.3
104.8
9,745.1
2012
9,885.7
99.0
9,984.7
Revenue from financial services primarily contains interest income of EUR 42.9 million (2012: EUR 46.5 million), similar
income of EUR 14.2 million (2012: EUR 10.5 million) and commission income of EUR 11.4 million (2012: EUR 10.6 million)
of Internationales Bankhaus Bodensee AG, Friedrichshafen, Germany. It also includes income from the leasing business.
Revenue from the sale of goods and services contains revenue from services of EUR 87.4 million (2012: EUR 87.3 million).
The drop in revenue from the sale of goods and services is attributable to the sale / discontinuation of activities of the
Würth Solar Group in the amount of EUR 263.4 million.
[2] Cost of materials
in millions of EUR
Cost of materials and supplies and of purchased merchandise
Expenses for purchased services
Total
2013
4,470.8
179.2
4,650.0
2012
4,643.3
177.5
4,820.8
[3] Cost of financial services
Cost of financial services primarily contains interest expenses of EUR 15.6 million (2012: EUR 21.5 million) and commission
of EUR 5.3 million (2012: EUR 4.1 million) paid by Internationales Bankhaus Bodensee AG, Friedrichshafen, Germany.
This item also contains EUR 2.3 million (2012: EUR 2.7 million) from the external business of the companies specializing
in leases.
[4] Other operating income
Other operating income principally includes income from the sale of other goods and services as well as income from the
disposal of assets.
108
[5] Personnel expenses and number of employees
Personnel expenses
in millions of EUR
Wages and salaries
Social security
Pension and other benefit costs
Total
2013
2,221.8
299.3
212.6
2,733.7
2012
2,250.5
296.6
209.0
2,756.1
2013
7,085
12,330
19,415
44,156
63,571
2012
7,140
12,465
19,605
45,564
65,169
29,157
34,414
30,790
34,379
Number of employees as of the reporting date
Würth Line Germany
Allied Companies Germany
Würth Group Germany
Würth Group International
Würth Group total
thereof
Sales staff
In-house staff
The average headcount of the Würth Group totaled 64,217 in the fiscal year under review (2012: 66,050). In Germany,
the average headcount of the Würth Group totaled 19,992 (2012: 20,000) and in other countries 44,225 (2012:
46,050).
[6] Other operating expenses
Other operating expenses mainly include selling, administration and operating expenses, bad debts and other taxes.
Other operating expenses also include impairment of receivables from the banking business of EUR 21.1 million
(2012: EUR 7.8 million).
109
[7] Finance revenue / finance costs
in millions of EUR
Other interest and similar income
Interest and similar expenses
Net interest cost from pension plans
Total financial result
thereof from financial instruments under the IAS 39 measurement categories:
Held-to-maturity investments (HtM)
Financial assets held for trading (FAHfT)
Financial assets (designated as) at fair value
through profit or loss (FAFVtpl)
Loans and receivables (LaR)
Financial liabilities held for trading (FLHfT)
Financial liabilities at amortized cost (FLAC)
2013
45.8
120.2
6.3
80.7
2012
44.2
100.5
5.4
61.7
0.3
34.8
0.4
27.1
1.4
9.4
– 35.5
– 84.7
1.2
12.4
–16.7
– 80.7
Income from the translation of foreign currency items amounted to EUR 4.6 million (2012: EUR 1.6 million).
The net gains or losses from financial assets / liabilities held for trading include the net gains or losses from changes in fair
value as well as interest income and expenses from these financial instruments. The net gains or losses from loans and
receivables chiefly include the effects of impairments and reversals of impairment losses.
[8] Income taxes
in millions of EUR
Current taxes
Deferred tax income
Deferred tax income from unused tax losses
Other deferred tax income
Deferred tax expense
Deferred tax expense from unused tax losses
Other deferred tax expenses
Total
2013
93.4
2012
92.8
61.3
48.9
61.4
33.6
79.7
41.6
104.5
72.4
37.3
107.8
Income taxes include corporate income tax (including solidarity surcharge) and trade tax of German entities and comparable
income taxes of foreign entities.
110
A reconciliation from the theoretical to the current tax rate for the Würth Group is shown below:
in millions of EUR
Theoretical tax rate as a %
Theoretical tax expense
Changes in theoretical tax expense due to:
Unrecognized tax losses of the current fiscal year
Recognition of unused tax losses from prior periods
Write-down on recognized unused tax losses from prior years
Write-down on temporary differences
Different tax rates
Tax reductions due to tax-free items
Tax increases due to non-deductible expenses
Tax increases due to add-back taxation
Income tax expense that cannot be derived from
earnings before taxes
Non-deductible impairment of goodwill
Taxes relating to other periods
Other
Income taxes
Effective tax rate as a %
2013
413.9
18.8
78.0
2012
386.7
20.6
79.6
18.2
– 4.5
4.0
1.1
0.9
-2.0
6.8
4.2
23.6
– 10.7
17.9
3.1
0.8
-3.1
9.6
8.6
3.4
2.7
– 8.4
0.1
104.5
25.2
4.7
4.5
– 31.4
0.6
107.8
27.9
The theoretical tax rate is based on the weighted average tax rate of all consolidated entities. Changes in income taxes
were mostly attributable to tax losses of the current fiscal year and write-downs of deferred taxes recognized in prior
years on unused tax losses if it was not reasonably certain that they can be used in subsequent periods. Deferred tax assets
were not recognized in such cases. In addition, the merger of Würth Beteiligungs GmbH & Co. KG with Adolf Würth
GmbH & Co. KG allowed unused tax losses written down to be capitalized / used in fiscal year 2013.
The recognition of unused tax losses from prior years includes EUR 1.5 million (2012: EUR 5.0 million) from the use of
deferred tax assets written down in prior years.
111
H. Notes to the consolidated statement of financial position
[9] Intangible assets including goodwill
in millions of EUR
Cost
1 January 2013
Exchange differences
Changes in the consolidated group
Additions
Disposals
Reclassifications
31 December 2013
Accumulated depreciation
and impairment
1 January 2013
Impairment losses
Disposals
Reversal of impairment losses
Reclassifications
31 December 2013
Net carrying amount
31 December 2013
112
Franchises,
industrial
rights,
licenses and
similar rights
Internally
generated
intangible
assets
Customer
relationships
and similar
assets
Goodwill
Payments
on account
Total
216.8
– 2.8
7.6
27.6
13.7
– 2.4
233.1
54.0
– 0.3
0.0
7.2
1.8
11.3
70.4
155.7
– 0.5
24.2
0.1
0.0
0.0
179.5
234.3
– 6.2
10.7
0.0
0.0
0.0
238.8
11.6
– 0.2
0.0
4.8
0.0
– 3.4
12.8
672.4
– 10.0
42.5
39.7
15.5
5.5
734.6
166.7
– 2.2
20.6
0.0
12.0
1.1
0.0
172.0
49.5
– 0.2
2.7
0.0
1.5
2.5
0.0
48.0
125.6
– 0.4
5.6
0.0
0.0
0.1
0.0
130.7
163.8
– 5.0
0.0
21.6
0.0
0.0
0.0
180.4
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.1
505.7
– 7.8
28.9
21.6
13.5
3.7
0.0
531.2
61.1
22.4
48.8
58.4
12.7
203.4
Franchises,
industrial
rights,
licenses and
similar rights
Internally
generated
intangible
assets
Customer
relationships
and similar
assets
Goodwill
Payments
on account
Total
195.9
0.2
7.5
19.4
5.2
48.8
4.3
0.0
1.5
0.0
136.6
0.0
25.6
0.4
0.0
234.4
0.5
6.6
0.0
0.3
8.9
0.0
0.0
5.1
0.6
624.6
5.0
39.7
26.4
6.1
Reclassifications to
“Assets classified as held for sale”
Reclassifications
31 December 2012
3.7
2.7
216.8
0.2
– 0.4
54.0
6.9
0.0
155.7
7.0
0.1
234.3
0.0
– 1.8
11.6
17.8
0.6
672.4
Accumulated depreciation
and impairment
1 January 2012
Impairment losses
Disposals
149.8
0.0
20.1
5.1
5.0
42.4
4.3
3.2
0.0
0.3
121.0
0.0
9.5
1.9
0.0
148.8
0.5
0.0
21.7
0.3
0.0
0.0
0.0
0.1
0.0
462.0
4.8
32.8
28.8
5.6
Reclassifications
31 December 2012
3.3
0.0
166.7
0.1
0.0
49.5
6.8
0.0
125.6
7.0
0.1
163.8
0.0
0.0
0.1
17.2
0.1
505.7
50.1
4.5
30.1
70.5
11.5
166.7
in millions of EUR
Cost
1 January 2012
Additions
Disposals
Net carrying amount
31 December 2012
Research and development costs (including amortization of capitalized development costs) recognized as expenses
totaled EUR 12.0 million (2012: EUR 10.7 million).
Goodwill contains amounts from asset deals as well as from share deals.
Goodwill is tested for impairment annually. The test is based on estimated future cash flows derived from the business plan.
The impairment losses recorded on goodwill amounted to EUR 21.6 million in the fiscal year 2013 (2012: EUR 21.7 million).
Goodwill was regularly tested for impairment in accordance with IAS 36 in the fiscal year 2013. With the exception
of Diffutherm / Dinol, these impairment tests were based on net selling price and conducted at the level of the smallest
cash-generating unit.
113
The impairment losses were recognized under amortization and depreciation.
The table below provides a summary of the tested goodwill and the assumptions underlying the impairment tests:
AP
Winner
LTDA
Lichtzentrale
Thurner GmbH
UNI ELEKTRO
Fachgroßhandel
GmbH & Co.KG
Tunap
Goodwill before
impairment test
Exchange difference
Impairment losses
Goodwill
2.4
– 0.4
0.0
2.0
6.8
0.0
0.0
6.8
20.9
0.0
20.9
0.0
9.2
0.0
0.0
9.2
8.8
0.0
0.0
8.8
Average sales
growth in the
planning period (%)
14.2
4.9
4.8
1.2
EBIT margin in the
planning period (%)
5.6-8.0
2.1-3.1
0.2-2.5
Length of the
planning period
4 years
4 years
1.0
2013
in millions of EUR
Chemofast
Anchoring Diffutherm / GmbH
Dinol
Other
Total
6.2
0.0
0.0
6.2
26.9
– 0.8
0.7
25.4
81.2
– 1.2
21.6
58.4
8.4
7.3
2.1-25.5
6.7-8.0
9.8-10.3
5.0-6.9
1.8-18.3
4 years
4 years
4 years
4 years
4 years
1.0
1.0
1.0
1.0
1.0
1.0
6.6
19.9
3.1
11.4
2.5
11.0
7.2
9.5
10.3
11.1
6.9
9.3
4.0-18,3
9.4 -23.6
assuming a 10%
lower cash flow
0.2
0.0
0.0
0.0
0.0
0.0
0.1
assuming
a 1% higher discount rate
0.0
0.0
0.0
0.0
0.0
0.0
0.1
Sales growth p. a.
after the end of the
planning period (%)
EBIT margin after the end
of the planning period (%)
Discount rate
Additional impairment losses
114
AP
Winner
LTDA
Lichtzentrale
Thurner GmbH
UNI ELEKTRO
Fachgroßhandel
GmbH & Co.KG
Goodwill before
impairment test
Exchange difference
Impairment losses
Goodwill
4.9
– 0.5
2.0
2.4
6.8
0.0
0.0
6.8
Average sales
growth in the
planning period (%)
10.3
7.2
EBIT margin in the
planning period (%)
6.5 - 9.2
1.9 - 2.8
1.1 - 2.3 6.7 - 9.0 – 2.4 - 8.4
1.1 -1.5 9.3 -11.4 –1.9 -20.3
Length of the
planning period
4 years
4 years
4 years 4 years
4 years
4 years
4 years
4 years
1.0
1.0
1.0
1.0
1.0
1.0
1.0
1.0
9.1
23.0
2.8
12.7
2.3
10.4
9.0
7.4
8.4
10.4
1.5
11.3
assuming a 10%
lower cash flow
2.8
0.0
15.3
0.0
10.2
6.8
0.0
1.7
assuming
a 1% higher discount rate
2.5
0.0
19.0
0.0
10.2
6.8
0.0
1.7
2012
in millions of EUR
Sales growth p. a.
after the end of the
planning period (%)
EBIT margin after the end
of the planning period (%)
Discount rate
Impairment losses
Tunap
Dokka
Fasteners
SolarMarkt
AG
Diffutherm
B.V.
Other
Total
23.1
0.0
2.2
20.9
9.2
0.0
0.0
9.2
9.7
0.5
10.2
0.0
6.8
0.0
6.8
0.0
6.2
0.0
0.0
6.2
25.5
0.0
0.5
25.0
92.2
0.0
21.7
70.5
9.9
10.4
6.2
8.4
5.0
2.8-31.2
11.4 0.6 - 20.3
9.1 9.1- 20.4
Impairment losses were recognized mostly on entities that are exposed to a sharp fall in demand on account of the present
economic situation. The assumptions underlying the calculation of net selling price are most sensitive to estimation uncertainties regarding sales growth, EBIT margins and the discount rates used.
The assumptions concerning sales growth and EBIT margins used for the impairment tests in the planning period are based
on internal records of past experience and assumptions by management used in the business plans valid as of the reporting date.
Discount rates reflect the current market assessment of the risks specific to each cash-generating unit. The discount rate
was estimated based on the weighted average cost of capital for the industry. This rate was further adjusted to reflect
the market assessments of any risks specific to the cash-generating units for which future estimates of cash flows have
not been adjusted.
With regard to the assessment of value in use of the cash-generating units, management believes that – with the exception
of those cash-generating units where impairment losses were recognized – no reasonably possible change in any of the
above key assumptions made to determine net selling price would cause the carrying amount of the cash-generating unit
to materially exceed its recoverable amount.
115
[10] Property, plant and equipment
in millions of EUR
Cost
1 January 2013
Additions
Disposals
Reclassifications
31 December 2013
Accumulated depreciation and impairment
1 January 2013
Impairment losses
Disposals
Reclassifications
31 December 2013
Net carrying amount
31 December 2013
116
Land, land rights
and buildings
incl. buildings on
third-party land
Technical
equipment and
machines
Other equipment, furniture
and fixtures
Payments on
account and
assets under
construction
Total
1,923.7
– 16.5
8.1
51.9
23.8
200.5
2,143.9
673.3
– 8.3
6.4
58.3
23.6
38.9
745.0
1,485.2
– 15.3
1.1
137.9
78.8
21.7
1,551.8
255.0
– 3.4
0.3
135.9
1.5
– 266.6
119.7
4,337.2
– 43.5
15.9
384.0
127.7
– 5.5
4,560.4
723.1
– 5.1
59.6
9.7
14.4
– 0.6
772.3
459.6
– 5.0
49.9
28.2
22.5
1.4
511.6
838.5
– 10.2
101.8
1.9
70.4
0.3
861.9
2.1
0.1
0.0
1.6
0.0
– 1.1
2.7
2,023.3
– 20.2
211.3
41.4
107.3
0.0
2,148.5
1,371.6
233.4
689.9
117.0
2,411.9
Land, land rights
and buildings
incl. buildings on
third-party land
Technical
equipment and
machines
Other equipment, furniture
and fixtures
Payments on
account and
assets under
construction
Total
1,844.5
1.9
2.5
52.3
10.4
698.4
1.5
2.9
50.7
27.1
1,383.8
1.7
0.4
117.1
43.6
186.3
0.1
0.1
190.9
0.7
4,113.0
5.2
5.9
411.0
81.8
21.7
54.6
1,923.7
87.8
34.7
673.3
4.6
30.4
1,485.2
1.4
– 120.3
255.0
115.5
– 0.6
4,337.2
Accumulated depreciation and impairment
1 January 2012
Impairment losses
Disposals
680.3
0.6
59.6
3.8
6.9
494.6
– 0.1
50.2
26.1
24.0
768.5
1.0
98.6
10.8
36.1
0.0
0.0
0.0
3.3
0.0
1,943.4
1.7
208.4
44.0
67.0
Reclassifications
Reversal of impairment losses
31 December 2012
14.2
– 0.1
0.0
723.1
87.3
– 0.1
0.0
459.6
4.1
0.1
0.3
838.5
1.2
0.0
0.0
2.1
106.8
– 0.1
0.3
2,023.3
1,200.6
213.7
646.7
252.9
2,313.9
in millions of EUR
Cost
1 January 2012
Additions
Disposals
Reclassifications
31 December 2012
Net carrying amount
31 December 2012
The impairment losses amounted to EUR 41.4 million in the fiscal year 2013 (2012: EUR 44.0 million). These were
mostly required on account of a decrease in expected capitalized earnings value relating to the fittings manufacturers,
wind power and in the trade area. Calculations were based on fair value less costs of disposal. Discount rates of 9.5%
and 9.75% were applied to fittings manufacturers and the trade area respectively. Regarding the reclassification to “Assets
classified as held for sale” in fiscal year 2012, please refer to [21] “Assets classified as held for sale and associated liabilities”; measurement was performed at the expected realizable values in each case.
117
There are restrictions on the rights of disposal of property, plant and equipment and assets assigned as collateral.
2013
124.8
7.1
131.9
in millions of EUR
Land charges
Collateral assignment
Total
2012
124.8
6.6
131.4
There are payment obligations of EUR 23.4 million (2012: EUR 12.4 million) for capital expenditures on non-current assets.
Payments on account and assets under construction contain assets under construction of EUR 95.7 million (2012:
EUR 222.4 million) which relate to technical equipment and machines as well as buildings.
[11] Financial assets
The investments disclosed under financial assets belong to the available-for-sale category. They are generally measured
at fair value without effect on profit or loss. There were no adjustments to fair value in the fiscal year 2013 which would
require unrealized gains and losses to be recognized in equity. Where fair value could not be determined because there
was no active market or suitable valuation technique, the investment was measured at amortized cost. In addition, this item
includes held-to-maturity investments, which are accounted for at amortized cost.
Internationales Bankhaus Bodensee AG, Friedrichshafen, Germany, has provided securities with a carrying amount of
EUR 11.0 million (2012: EUR 11.0 million) as collateral for loans granted by Kreditanstalt für Wiederaufbau, Frankfurt am
Main, Germany and EUR 15.0 million (2012: EUR 15.0 million) as collateral for loans granted by L-Bank, Karlsruhe, Germany. The maximum credit risk is the amount carried in the statement of financial position. Fair values that could not be determined on the basis of observable market data of EUR 19.4 million (2012: EUR 17.8 million) relate to long-term interests
in non-listed corporations and partnerships.
[12] Receivables from financial services
in millions of EUR
Receivables from the leasing business
Receivables from the insurance business
Receivables from the banking business
Receivables from customers
Receivables from banks
Other asset items
Total
2013
265.0
2.5
thereof due
within one year
102.2
2.5
2012
231.9
2.4
thereof due
within one year
90.8
2.4
1,103.1
44.5
2.7
1,417.8
530.3
44.5
2.7
682.2
1,054.6
46.9
1.9
1,337.7
464.7
46.8
1.9
606.6
Receivables from financial services include receivables from related parties of EUR 7.9 million (2012: EUR 2.8 million).
118
The Würth Group regularly sells receivables from financial services arising from the external leasing business in the form
of ABCP transactions. As of 31 December 2013, factored receivables from financial services of EUR 76.8 million (2012:
EUR 75.5 million) were not derecognized from the consolidated statement of financial position because all the risks and
rewards incidental to ownership were retained by the Würth Group. The corresponding liability is disclosed under
“[23] Liabilities from financial services”.
Of the receivables from financial services, an amount of EUR 12.4 million (2012: EUR 16.2 million) has been pledged as
collateral for refinancing at Deutsche Bundesbank, Frankfurt am Main, Germany, and EUR 37.7 million (2012: EUR 28.4
million) as collateral for a global loan at L-Bank, Karlsruhe, Germany.
The following table provides information on the extent of the credit risk included in receivables from financial services.
in millions of EUR
Receivables from financial services that are neither past due nor impaired
Receivables not impaired but past due by
less than 120 days
between 120 and 179 days
more than 360 days
Total
Impaired receivables from financial services (gross)
Impairment loss recognized on receivables from financial services
Net carrying amount
2013
1,266.3
2012
1,216.4
132.2
1.2
0.4
1.2
1,401.3
52.1
35.6
1,417.8
93.0
1.6
0.5
0.9
1,312.4
50.1
24.8
1,337.7
With respect to the receivables from financial services that were neither impaired nor past due, there was no indication as
of the reporting date that the debtors would not meet their payment obligations.
Most of the receivables that are past due but not impaired are secured.
Movements in the provision for impairment of receivables from financial services were as follows:
in millions of EUR
Provision for impairment as of 1 January 2013
Amounts recognized as income (–) or expense (+) in the reporting period
Derecognition of receivables
Payments received and recoveries of amounts
previously written off
Provision for impairment as of 31 December 2013
2013
24.8
21.4
– 10.5
2012
25.1
9.0
– 9.3
– 0.1
35.6
0.0
24.8
The income or expense from impairment losses and the derecognition of receivables from financial services is disclosed
under other operating expenses.
119
[13] Deferred taxes
Deferred tax assets and liabilities can be allocated as follows:
in millions of EUR
Non-current assets
Inventories
Receivables
Other assets
Provisions
Liabilities
Other liabilities
Unused tax losses
Netting
Total
Deferred
tax assets
2013
51.6
32.7
22.6
16.2
42.6
10.2
6.3
182.2
37.9
– 96.0
124.1
Deferred
tax liabilities
2013
51.1
26.3
4.5
40.1
19.3
3.5
49.5
194.3
– 96.0
98.3
Deferred
tax assets
2012
44.5
33.6
22.6
10.9
41.9
9.6
6.5
169.6
57.1
– 86.3
140.4
Deferred
tax liabilities
2012
48.9
27.0
4.0
34.3
15.0
4.0
46.3
179.5
–
– 86.3
93.2
Change
2013
4.9
– 0.2
– 0.5
– 0.5
–3.6
1.1
– 3.4
– 2.2
– 19.2
– 21.4
Change
2012
– 2.1
– 3.2
– 0.6
– 9.7
12.3
0.2
0.8
– 2.3
–11.3
–
– 13.6
With the exception of the exchange differences of EUR –0.9 million (2012: EUR 1.5 million), which were recognized directly
in equity, and additions of deferred taxes of EUR 6.0 million (2012: EUR 8.6 million) arising from new acquisitions as well
as deferred taxes of EUR –2.4 million (2012: EUR 11.5 million) recognized in other comprehensive income on items likewise recognized in other comprehensive income, the development of timing differences is reflected in full in income taxes.
There are deferred tax assets totaling EUR 26.7 million (2012: EUR 43.7 million) at entities that have a history of losses.
Deferred tax assets of EUR 38.9 million (2012: EUR 65.9 million) were recorded subsequently in fiscal 2013 on unused tax
losses of EUR 4.5 million (2012: EUR 10.7 million), as it is considered probable that they will be used in the Würth Group
in the future.
Deferred tax assets of EUR 220.7 million in total (2012: EUR 327.0 million) were recognized on unused tax losses.
No deferred tax assets were recognized for unused tax losses of EUR 466.5 million (2012: EUR 604.9 million) as it is not
sufficiently probable that they will be realized. The drop in these unused tax losses is mainly due to the sale of a non-core
area of the Electronics unit (solar sales function) in fiscal year 2013.
120
These unused tax losses are classified by expiration period as follows:
in millions of EUR
Expiration of unused tax losses
Non-forfeitable
Expiration within the next five to ten years
Expiration within the next one to five years
Expiration within the next year
Total unused tax losses net of deferred tax assets recognized
2013
2012
301.1
36.6
95.2
33.6
466.5
459.6
35.7
102.4
7.2
604.9
The unused tax losses include unused tax losses of EUR 0.2 million (2012: EUR 0.2 million) that originated prior to creation
of the consolidated tax group and that cannot be used until the existing profit and loss transfer agreements have been
terminated.
No deferred taxes were recognized for accumulated profits and losses of foreign subsidiaries of EUR 491.1 million (2012:
EUR 422.3 million). If deferred taxes had been recognized for these timing differences, they would have had to be calculated exclusively using the withholding tax rate applicable in each case, possibly including the German tax rate of 5%
on distributed dividends. The calculation of these unrecognized deferred tax liabilities would have been unreasonably
time-consuming.
Future distributions to the owners do not otherwise have any income tax implications for the Würth Group.
[14] Inventories
in millions of EUR
Materials and supplies
Work in process and finished goods
Merchandise
Payments on account
Total
2013
78.4
146.4
1,076.1
9.1
1,310.0
2012
70.7
131.7
1,090.9
6.4
1,299.7
The write-down recorded on inventories, which was recognized under cost of materials in the consolidated income statement, amounts to EUR 2.0 million (2012: EUR 2.9 million).
121
[15] Trade receivables
This item exclusively comprises receivables from third parties.
in millions of EUR
Trade receivables that are neither past due nor impaired
Receivables not impaired but past due by
less than 120 days
more than 360 days
Total receivables not impaired
Impaired trade receivables (gross)
Provision for impairment of trade receivables
Net carrying amount
2013
299.4
2012
331.7
403.2
2.1
0.5
0.1
705.3
640.4
135.6
1,210.1
452.2
9.4
1.2
0.2
794.7
572.9
134.5
1,233.1
With respect to the trade receivables that were neither impaired nor past due, there was no indication as of the reporting
date that the debtors would not meet their payment obligations.
Where possible and feasible, we take out credit insurance.
Movements in the provision for impairment of trade receivables were as follows:
in millions of EUR
Provision for impairment as of 1 January 2013
Amounts recognized as income (–) or expense (+) in the reporting period
Derecognition of receivables
Payments received and recoveries
of amounts previously written off
Currency translation effects
Plus / less impairment losses recognized on assets
classified as held for sale
Provision for impairment as of 31 December 2013
2013
134.5
1.1
50.1
– 47.2
2012
130.8
0.4
45.1
– 39.0
– 1.7
– 2.4
– 1.2
0.0
1.2
135.6
– 1.6
134.5
The following table presents the expenses from the derecognition of trade receivables and income from recoveries of
amounts previously written off:
in millions of EUR
Expenses from the derecognition of receivables
Income from recoveries of amounts previously written off
2013
47.2
3.0
2012
39.0
3.1
The income or expense from impairment losses and the derecognition of trade receivables is disclosed under other operating expenses.
122
[16] Income tax receivables
This item records income tax receivables from tax authorities.
[17] Other financial assets
in millions of EUR
Receivables from related parties
Derivative financial assets
Sundry financial assets
Total
2013
85.6
20.6
71.7
177.9
thereof due
within one year
65.1
20.6
71.7
157.4
2012
48.8
47.5
71.3
167.6
thereof due
within one year
22.4
47.5
71.3
141.2
Sundry financial assets mainly include supplier discounts and bonuses.
All other past due financial assets are directly written off against the underlying other financial assets.
Sundry non-current financial assets include the purchase price receivable of EUR 23.5 million (2012: EUR 26.4 million)
from the sale of Freie Schule Anne-Sophie to the Würth Foundation, Künzelsau, Germany. The receivable is subject to
customary market interest rates.
[18] Other assets
in millions of EUR
Sundry assets
Prepaid expenses
Total
2013
115.1
43.5
158.6
thereof due
within one year
88.2
43.5
131.7
2012
109.4
45.6
155.0
thereof due
within one year
87.0
45.6
132.6
Sundry assets mainly include VAT receivables and customs duties paid in advance. Prepaid expenses mainly relate to
prepaid insurance premiums and prepaid lease and rent payments.
Impairment losses were recognized on all other assets that were past due.
123
[19] Securities
On the one hand, the securities are investments in shares and bonds that are not actively traded, but managed at fair
value on account of internal management and performance evaluations as well as in accordance with a documented
risk management and investment strategy. Changes in value are determined by reference to comparable market values
(level 2). Income from changes in value amounted to EUR 0.0 million in the fiscal year (2012: EUR 1.1 million). A total
amount of EUR 8.3 million has been recognized in profit or loss since the instruments were designated as financial assets
at fair value through profit or loss (2012: EUR 10.3 million). On the other hand, securities include actively traded shares
and bonds that are grouped as available-for-sale financial assets. There were no changes in value in fiscal year 2013. Of
the securities, an amount of EUR 51.2 million (2012: EUR 51.2 million) was pledged as collateral for the credit line granted
for refinancing purposes by Deutsche Bundesbank, Frankfurt am Main, Germany. The maximum credit risk corresponds to
the fair value recognized.
[20] Cash and cash equivalents
Balances denominated in foreign currency are measured at the closing rate. The composition and development of cash
and cash equivalents is presented in the consolidated statement of cash flows. The money market funds were valued at the
current money market rate.
[21] Assets and liabilities classified as held for sale
The statement of financial position of the Würth Group as of 31 December 2012 reports assets and liabilities classified as
held for sale pursuant to IFRS 5, as the Würth Group was negotiating the sale of a non-core area of the Electronics unit
(solar sales function) and of a subarea of the Production unit on the reporting date.
In fiscal year 2013, most of the Würth Solar Group was sold / operations discontinued; the remaining EUR 5.3 million
relates to inventories from this business area in respect of which the negotiations have not yet been concluded. The current
values, derivated from the current market values, are stated. Furthermore, a solar project was reallocated to the portfolio
of the Würth Group. Plans to sell part of the Production unit were abandoned in fiscal year 2013. The assets and liabilities
reported under this item at the end of 2012 were moved back to the statement of financial position.
124
The major classes of assets and liabilities classified as held for sale breaks down as follows:
Assets
in millions of EUR
Non-current assets
Intangible assets including goodwill
Property, plant and equipment
Deferred taxes
Current assets
Inventories
Trade receivables
Income tax assets
Other assets
Assets classified as held for sale
2013
2012
0.0
0.0
0.0
0.6
8.7
1.5
5.3
0.0
0.0
0.0
0.0
5.3
36.1
19.3
0.2
6.7
1.0
74.1
2013
2012
0.0
0.0
0.0
0.0
0.0
1.9
0.9
1.0
1.0
0.2
0.0
0.0
0.0
0.0
0.0
0.0
7.2
0.6
0.1
7.0
10.2
30.1
5.3
44.0
Liabilities
in millions of EUR
Obligations from post-employment benefits
Provisions
Other liabilities
Deferred taxes
Current liabilities
Trade payables
Provisions
Other liabilities
Liabilities associated with assets classified as held for sale
Net assets directly associated with the disposal group
125
[22] Equity
Share capital comprises the share capital of following parent companies within the Group:
Parent companies within the Group
Würth Finanz-Beteiligungs-GmbH
Würth Elektrogroßhandel GmbH & Co. KG
Waldenburger Beteiligungen GmbH & Co. KG
Würth Promotion Ges.m.b.H.
Würth Beteiligungen GmbH
Other (incl. 25 general partner companies)
Total
Registered office
Germany
Germany
Germany
Germany
Austria
Germany
Germany
Share capital
in millions of EUR
300.0
37.0
19.5
15.0
0.04
0.03
0.83
372.4
Shareholders
Würth Family Trusts
Würth Private Trust
Adolf Würth Trust
The limited partners’ capital in the partnerships corresponds to the share capital. In the 2013 fiscal year, Würth Beteiligungs
GmbH & Co. KG, Künzelsau, Germany was merged with Adolf Würth GmbH & Co. KG, Künzelsau, Germany, resulting in
a drop in the share capital.
Other reserves include the profits earned in prior years and not yet distributed as well as capital contributions at the
parent companies in the Group and consolidated subsidiaries. Differences from foreign currency translation are also
disclosed here, as is the revaluation of defined benefit plans.
The individual components of equity and their development in 2013 and 2012 are shown in the consolidated statement of
changes in equity.
Non-controlling interests mainly relate to shares held by third parties in subsidiaries as well as direct shareholdings of
members of the Würth family.
Distributions of EUR 60 million are planned for 2014.
[23] Liabilities from financial services
2013
in millions of EUR
Liabilities from the leasing business
Liabilities from the insurance business
Liabilities from the banking business
Total
126
Total
78.0
2.2
1,071.4
1,151.6
Due in
< 1 year
30.3
2.2
775.5
808.0
Due in
1–5 years
46.9
0.0
284.5
331.4
Due in
> 5 years
0.8
0.0
11.4
12.2
2012
in millions of EUR
Total
Total
77.6
2.5
1,067.7
1,147.8
Due in
< 1 year
31.6
2.5
666.4
700.5
Due in
1–5 years
45.2
0.0
325.9
371.1
Due in
> 5 years
0.8
0.0
75.4
76.2
Liabilities from financial services include liabilities from related parties of EUR 2.2 million (2012: EUR 1.5 million).
Liabilities from the leasing business include liabilities from an ABCP transaction of EUR 76.8 million (2012: EUR 75.5 million).
The nominal amount of this ABCP transaction comes to EUR 82.6 million (2012: EUR 81.9 million). Any risk items relating
to it are hedged by interest swaps of the same amount as soon as they become apparent. As of the end of the reporting
period, the contrasting changes in value and cash flows from hedged transactions and hedging instruments had balanced
each other out.
The table below shows the contractually agreed remaining terms to maturity.
Cash flow
in millions of EUR
Carrying amounts
31 December 2013
78.0
2.2
1,071.4
< 1 year
34.4
2.2
847.1
1–5 years
50.0
0.0
299.9
> 5 years
1.0
0.0
19.9
[24] Financial liabilities
in millions of EUR
Bonds
Liabilities to banks
Liabilities to non-controlling interests
Liabilities from leases
Total
2013
1,570.2
188.6
37.0
11.3
1,807.1
thereof due
within one year
275.4
59.8
37.0
2.0
374.2
2012
1,356.4
206.0
46.9
8.9
1,618.2
thereof due
within one year
248.9
155.2
43.7
1.6
449.4
The Group has financial liabilities due in more than five years of EUR 710.5 million (2012: EUR 649.9 million).
127
The maturities and terms of the bonds repayable and their fair values are as follows:
Type
Bearer bond
Bond
Bond
Bond
US private placement
As of 31 December 2013
Type
Promissory note loan
Promissory note loan
Bearer bond
Bearer bond
Bond
Bond
US private placement
Amount
EUR 300 million
CHF 225 million
EUR 500 million
EUR 500 million
USD 200 million
Amount
EUR 50 million
EUR 100 million
EUR 100 million
EUR 300 million
CHF 225 million
EUR 500 million
USD 200 million
Interest
4.75 %
3.88 %
3.75 %
1.75 %
4.48 %
Interest
4.61 %
floating*
4.25 %
4.75 %
3.88 %
3.75 %
4.48 %
Effective
interest
4.79 %
3.97 %
3.86 %
1.76 %
4.53 %
Effective
interest
4.67 %
4.31 %
4.79 %
3.97 %
3.86 %
4.53 %
Maturity
12/6/2014
3/8/2015
25/5/2018
21/5/2020
22/9/2021
Maturity
2/4/2013
2/4/2013
31/5/2013
12/6/2014
3/8/2015
25/5/2018
22/9/2021
Treasury stock
in millions
of EUR
24.5
28.9
0.0
0.0
0.0
53.4
Carrying
amount in millions of EUR
275.4
154.4
497.0
498.1
145.3
1,570.2
Fair value
in millions
of EUR
298.7
169.0
545.5
488.5
167.5
1,669.2
Treasury stock
in millions
of EUR
0.0
0.0
1.0
17.8
0.0
5.4
0.0
24.2
Carrying
amount in millions of EUR
50.0
100.0
99.0
278.8
186.0
490.9
151.7
1,356.4
Fair value
in millions of
EUR
50.6
100.1
101.6
315.7
204.6
576.8
183.0
1,532.4
*3-months Euribor + 55 base points
Treasury stock of EUR 1,623.6 million (2012: EUR 1,380.6 million) that was treated as corporate repurchase was offset
against the bonds that were issued with an original value of EUR 53.4 million (2012: EUR 24.2 million).
The capital borrowed though the US private placement of USD 200 million is contingent on certain covenants being met.
The Würth Group is required to meet certain debt service ratios such as the ratio of net financial debt to EBITDA and
senior liabilities to equity. They also include restrictions on the disposal of assets.
The maturities and conditions of liabilities due to banks are as follows:
Interest
Currency
terms
EUR
floating / fixed
USD
floating / fixed
Other
floating / fixed
EUR
fixed
Other
fixed
EUR
fixed
128
Remaining
fixed interest
Interest rate
< 1 year 0.01 % – 17.09 %
< 1 year 0.01 % – 5.81 %
< 1 year 1.00 % – 20.00 %
1–5 years
0.4 % – 6.69 %
1–5 years 1.00 % – 20.00 %
> 5 years
0.4 % – 6.00 %
< 1 year
52.5
0.1
7.2
0.0
0.0
0.0
59.8
1–5 years
8.9
0.0
0.0
44.8
10.3
0.0
64.0
> 5 years
64.1
0.0
0.0
0.3
0.0
0.4
64.8
Carrying
amount
125.5
0.1
7.2
45.1
10.3
0.4
188.6
Interest
Currency
terms
EUR
floating / fixed
USD
floating / fixed
Other
floating / fixed
EUR
fixed
Other
fixed
EUR
fixed
Remaining
fixed interest
Interest rate
< 1 year 0.01 % – 11.25 %
< 1 year 0.01 % – 5.39 %
< 1 year 0.78 % – 20.00 %
1–5 years 0.01 % – 8.12 %
1–5 years 4.30 % – 9.50 %
> 5 years 0.01 % – 6.00 %
< 1 year
130.8
0.3
24.0
0.0
0.1
0.0
155.2
1–5 years
0.0
0.0
0.0
50.4
0.0
0.0
50.4
> 5 years
0.0
0.0
0.0
0.0
0.0
0.4
0.4
Carrying
amount
130.8
0.3
24.0
50.4
0.1
0.4
206.0
The carrying amounts of liabilities to banks reported in the statement of financial position approximate fair value.
Non-current liabilities from leases are subject to customary market interest rates.
The table below shows the contractually agreed remaining terms to maturity.
Cash flow
in millions of EUR
Bonds, liabilities to banks
Liabilities from leases
Trade payables
Derivative financial liabilities
Inflows from currency derivatives
Outflows from currency derivatives
Outflows from interest derivatives
Carrying amounts
31 December 2013
< 1 year
1–5 years
> 5 years
1,758.8
11.3
426.4
415.1
2.6
426.4
897.1
8.2
0.0
738.9
2.5
0.0
–
0.8
27.4
217.3
219.9
13.0
22.6
22.6
13.1
0.0
0.0
10.8
[25] Obligations from post-employment benefits
A pension plan is in place for employees of the Würth Group for the period after they retire. The benefits vary according
to local legal, tax and economic conditions. The obligations include vested future pension benefits as well as current
pensions paid. The company pension scheme includes defined contribution plans and defined benefit plans.
In the case of defined contribution plans, the respective entity pays contributions to state or private pension companies
either on a voluntary basis or based on legal provisions. The contributions are recognized as a personnel expense when
they fall due. No further payment obligations arise for the Würth Group from the payment of contributions. Current
contributions (without contributions to the statutory pension insurance) totaled EUR 11.9 million (2012: EUR 13.2 million).
Payments of EUR 156.2 million were made to the statutory pension insurance (2012: EUR 158.3 million).
The largest defined benefit plans are in Germany, Austria, Italy, the Netherlands and Switzerland. The defined benefit
plans in Germany, Austria and Italy constitute direct obligations, whereas the Swiss and Dutch plans are indirect benefit
obligations. The amount of the entitlements depends on the length of service, frequently on the salary development and for
indirect benefit obligations also on the employee contributions paid in.
129
The Würth Group’s benefit obligations in Germany guarantee the beneficiaries a life-long monthly old-age pension, provided that a vesting period of ten years of service can be demonstrated. The amount of the benefit is usually determined
by fixed amounts arranged. Employees receive such voluntary pensions in addition to the statutory pension once they
reach the statutory retirement age. Employees are also offered another defined benefit plan in the form of a deferred
compensation arrangement under which gross cash compensation is converted to a company pension plan based on individual contracts. This voluntary conversion of monthly compensation is generally limited to the higher of either 10% of one
twelfth of the yearly income before commencement of the conversion or 4% of the respective maximum monthly contribution to the German pension system (western German states). In total, obligations in Germany amount to EUR 107.4 million
(2012: EUR 101.4 million).
In Austria, a severance payment is guaranteed by law, subject to the provisions of the BMVG [“Betriebliche Mitarbeiter
versorgungsgesetz”: Austrian Act governing Company Pensions]. This is paid out when the employment relationship ends.
For employment relationships that began before the end of 2002, the employee has a right to such payment from the employer. The amount depends on the length of service and salary development. If the employment relationship is terminated
by the employee, the right to a severance payment from the employer is forfeited. For employment relationships started as
of the beginning of 2003, the employer pays 1.53% of the gross monthly salary into a selected company pension scheme,
which then pays out any severance payment entitlement when the employment ends. The entitlement is now retained even
if the employee terminates the employment relationship. For employment relationships that began before the end of 2002,
total obligations of EUR 22.6 million (2012: EUR 22.2 million) were recognized in Austria.
In Italy, employees are entitled by law to a severance payment when the employment relationship ends (trattamento di
fine rapporto, TFR). The amount of the TFR is determined by the number of years of service and is capped at one month’s
salary per year of service. Since 2007, the legislature has provided for a capital option, i.e., the employees can choose
whether provision should continue to be made for their future entitlements in the company or be paid into a pension fund
instead. Obligations totaling EUR 21.6 million were recognized in the statement of financial position of the Würth Group in
Italy (2012: EUR 23.5 million).
In the Würth Group in Switzerland, retirement benefits are handled via external insurance companies. They are subject
to regulatory supervision and are governed by the BVG [“Bundesgesetz über die berufliche Alters-, Hinterlassenen- und
Invalidenvorsorge”: Swiss Federal Act on Occupational Retirement, Survivors’ and Disability Pension Plans]. The top
management body of these insurance companies, the trust board, is comprised of an equal number of employee and
employer representatives. The various benefits are set forth in regulations, with minimum benefits stipulated by the BVG.
The contributions to the insurance company are settled by employers and employees. In the event of a deficit, measures
can be agreed, such as adjusting the benefit obligation by changing conversion rates or increasing current contributions.
In the case of almost all Swiss entities in the Würth Group Switzerland, the insurance company is a separate pension
trust. The benefits comprise not only old age pensions, but also disability and surviving dependants’ pension benefits. The
trust’s statutes define the pension scope and benefit amounts, minimum payment obligations and the investment strategy.
All insurance-related risks are borne by the trust. The trust board reviews the investment strategy annually by means of an
ALM (asset liability management) analysis as part of its responsibility for the investment of the assets. In total, obligations
in Switzerland amounted to EUR 136.6 million (2012: EUR 134.8 million). Plan assets came to EUR 118.1 million
(2012: EUR 108.6 million). The associated net liability amounts to EUR 18.5 million (2012: EUR 26.2 million).
130
In the Würth Group Netherlands, the company pension plan is based on a consensus between the government and the
parties to collective bargaining agreements. The BPF [“Wet verplichte deelneming in een bedrijfspensioenfonds”: Dutch
Mandatory Participation in an Industry-wide Pension Fund Act] and the PSW [“Pensioen- en Spaarfondsenwet”: Dutch
Pension and Savings Fund Act] provide for quasi-obligatory additional company insurance. The mandatory membership
of a an industry-wide pension fund relates to the majority of all employees covered by additional pension insurance. The
additional insurance comprises old age pension and in many cases also surviving dependants’ benefits. The PSW sets
forth the legislator’s key framework conditions for company pension plans. These include a requirement to segregate funds
accumulated for pension purposes from a company’s other assets (in an industry-wide pension fund, a company pension
fund or master or individual insurance policies at an insurance company) and the obligation on the part of the employer
to ensure that the premiums are paid. In the Netherlands, the Würth Group pays premiums to an insurance company. This
is a qualified insurance policy. In total, obligations in the Netherlands amounted to EUR 39.1 million (2012: EUR 38.3
million). Plan assets came to EUR 40.7 million (2012: EUR 42.7 million).
The obligations from post-employment benefits were determined based on the following assumptions:
%
Germany
Austria
Italy
Switzerland
Netherlands
Other countries
Discount rate
2013
2012
3.50
3.50
3.50 – 3.75 3.50 – 4.00
4.00
4.00
2.00
1.75
3.50
3.20
2.50 – 4.40 2.00 – 4.40
Future salary increases
2013
2012
3.00
3.00
2.00 – 4.00 2.00 – 4.00
0.00 – 5.00
3.00
1.00
1.00
1.30
1.30
2.00 – 3.50 2.60 – 3.50
Future pension increases
2013
2012
2.25
2.25
–
–
1.50
1.50
–
–
2.00
2.00
1.00 – 3.25 1.00 – 2.80
The 2005 G mortality tables from Dr. Klaus Heubeck are applied in Germany. The method for determining the discount
rate is unchanged compared to the prior year.
The benefit obligations are derived as follows:
2013
238.6
– 205.9
1.6
34.3
2012
242.5
– 200.0
4.4
46.9
2011
203.6
– 173.9
5.1
34.8
2010
183.2
– 166.0
4.1
21.3
2009
149.8
– 131.5
0.2
18.5
Present value of unfunded benefit obligations
151.8
147.5
116.0
111.0
103.6
Net benefit liability recognized in the
statement of financial position
186.1
194.4
150.8
132.3
122.1
10.2
– 3.6
0.8
– 0.4
– 0.1
in millions of EUR
Present value of funded benefit obligations
Fair value of plan assets
Adjustments on plan assets in accordance with IAS 19.64 b
Net carrying amount on funded benefit obligations
Experience adjustments
Present value of the obligations
The average term to maturity of the obligations from post-employment benefits is 18 years.
131
The net benefit expense from defined benefit plans breaks down as follows:
in millions of EUR
Service cost
Current service cost
Past service cost
Income from plan settlements
Net interest cost
Other
Total expense recognized in the income statement
2013
2012
18.1
– 1.6
– 0.5
6.3
0.0
22.3
14.4
– 2.1
0.0
5.9
0.2
18.4
The service cost is recognized under personnel expenses, while the net interest cost is recorded in the financial result.
The remeasurement of defined benefit plans breaks down as follows:
in millions of EUR
Actuarial gains (–) and losses (+) recognized
on changes in actuarial assumptions
on changes in demographic assumptions
Return on plan assets (less interest income)
Effects of the asset ceiling (IAS 19.64 b)
Remeasurement of defined benefit plans
2013
2012
– 17.7
10.2
0.7
– 2.7
– 9.5
59.8
– 3.6
– 9.7
– 0.7
45.8
With the exception of interest expenses and the expected expenses/income from plan assets, which are included in the
financial result, all other expenses and income are included in personnel expenses.
The present value of the defined benefit obligations changed as follows:
in millions of EUR
Defined benefit obligation at the beginning of the year
Increase due to deferred compensation
Service cost
Interest cost
Employee contributions
Benefits paid
Actuarial gains (–) and losses (+) recognized
Transfer of benefits
Exchange difference on foreign plans
Other
Defined benefit obligation at the end of the year
2013
390.0
0.7
16.0
10.8
5.1
– 12.0
– 7.5
– 6.9
– 5.8
0.0
390.4
2012
319.6
0.8
12.3
12.1
5.4
– 13.0
56.2
– 6.6
2.5
0.7
390.0
Future adjustments in pension developments are taken into account in accordance with legal provisions (e.g., in Germany
Sec. 16 BetrAVG [“Gesetz zur Verbesserung der betrieblichen Altersversorge”: German Company Pensions Act]).
132
The fair value of the plan assets has developed as follows:
2013
200.0
4.5
– 0.7
10.4
5.2
– 3.2
– 6.3
– 4.0
0.0
205.9
in millions of EUR
Fair value of plan assets at the beginning of the year
Interest income
Return on plan assets (less interest income)
Employer contributions
Employee contributions
Benefits paid
Transfer of assets
Exchange difference on foreign plans
Other
Fair value of plan assets at the end of the year
2012
173.9
6.2
9.7
11.4
5.3
– 3.2
– 5.9
2.1
0.5
200.0
The actual return came in at 1.9% (2012: 8.8%). The amount of employer’s contributions to funds is expected to be similar
in the following year.
Breakdown of fair value of plan assets by asset category:
in millions of EUR
Fixed-income investment funds
Share-based investment funds
Real estate investment funds
Other funds
Fixed-interest securities
Equities
Real estate
Other
Total
2013
79.6
39.5
32.1
26.9
16.0
1.9
2.6
7.3
205.9
2012
82.1
31.2
25.9
28.2
17.2
2.0
2.9
10.5
200.0
2011
68.7
22.4
20.7
29.4
10.6
2.5
3.1
16.5
173.9
2010
67.0
23.8
20.7
25.5
12.3
2.0
2.7
12.0
166.0
2009
53.0
18.9
16.4
20.3
9.8
1.9
1.8
9.5
131.6
As a rule, quoted prices are available on an active market for the equity and debt instruments. The ratings for funds and
fixed-interest securities are usually not below A. The item “Other” primarily relates to cash and cash equivalents invested at
banks with an A rating or higher.
With regard to sensitivities, the key actuarial assumptions determined for the Würth Group in Germany are the discount
rate and for the Würth Group in Switzerland the discount rate and the rate of future salary increases. At the Würth
Group in Germany, a 0.5% increase / decrease in the discount rate would lead to a decrease / increase in the DBO of
–7.7% / +9.9%.
At the Würth Group in Switzerland, a 0.25% increase / decrease in the discount rate would lead to a decrease / increase
in the DBO of –4.5% / +4.7%. A 0.5% increase / decrease in the rate of future salary increases would lead to an increase/decrease in the DBO of +1.3% / –0.8%.
133
[26] Provisions
in millions of EUR
Credit notes
Long-service bonuses
Warranty obligations
Litigation and lawyers‘ fees
Phased retirement scheme
Product liability
Sundry
Total
thereof:current
non-current
in millions of EUR
Credit notes
Long-service bonuses
Warranty obligations
Litigation and lawyers‘ fees
Phased retirement scheme
Product liability
Sundry
Total
thereof:current
non-current
1 January
2013
60.4
55.8
33.5
13.7
6.6
7.6
35.8
213.4
140.3
73.1
Exchange
difference
– 0.2
– 0.3
– 0.2
–0.2
0.0
– 0.1
– 0.3
– 1.3
1 Janu- Exchange
ary
differ2012
ence
57.1
0.2
47.8
0.0
39.2
0.1
15.3
– 0.3
8.2
0.0
6.7
0.0
34.4
0.0
208.7
0.0
140.4
68.3
Additions due
to changes in
the consolidated group
0.8
0.0
0.3
0.0
0.0
0.0
0.2
1.3
Utilization
55.2
0.2
31.4
1.8
0.7
3.1
11.6
104.0
ReclassificaAdditions tions to “Liabilidue to ties associated
with assets
changes in
classified as
the consolidated group held for sale”
0.4
0.8
0.0
0.2
0.0
1.1
0.0
0.1
0.0
0.4
0.0
1.5
0.3
2.9
0.7
7.0
Reversal
5.2
0.6
0.5
2.1
1.7
0.5
21.5
32.1
Utilization
52.7
0.2
37.0
1.4
1.6
0.7
22.4
116.0
Addition
63.5
2.3
25.4
14.5
3.0
1.4
34.8
144.9
Reversal
4.2
0.7
0.8
3.2
1.3
0.4
6.8
17.4
Unwinding of
the discount
and changes
in the
discount rate
0.0
3.0
0.1
0.2
0.3
0.2
0.2
4.0
Addition
60.4
6.6
33.0
3.1
1.3
3.3
32.9
140.6
Unwinding
of the discount and
changes in
the discount rate
0.0
2.5
0.1
0.3
0.4
0.2
0.3
3.8
The provision for credit notes is primarily attributable to obligations relating to discounts, bonuses, etc. granted that are
allocable to the period after the reporting date, but caused by sales prior to the reporting date. The provision for long-service
bonuses contains bonuses awarded to employees that have been with the company for many years. The provision for
warranty obligations accounts for risks from legal or constructive obligations from trade with fastening and assembly
materials involving trade customers, the building industry and industrial customers as well as from the manufacture of
screws, fittings and solar modules. Other provisions relate to numerous identifiable specific risks and uncertain liabilities
which were accounted for at the amount at which they are likely to be incurred.
The cash outflow for provisions for long-service bonuses and the German phased retirement scheme (‘Altersteilzeit’) is
mainly of a medium (two to four years) to long-term (five to 50 years) nature. In most cases other provisions are expected
to lead to a cash outflow in the next fiscal year.
134
31 December
2013
64.1
60.0
27.2
24.3
7.5
5.5
37.6
226.2
146.9
79.3
31 December
2012
60.4
55.8
33.5
13.7
6.6
7.6
35.8
213.4
140.3
73.1
[27] Other financial liabilities
in millions of EUR
Liabilities to related parties
Derivative liabilities
Sundry financial liabilities
Total
2013
17.0
20.0
269.9
306.9
thereof due
within one year
17.0
20.0
264.2
301.2
2012
60.9
31.1
251.5
343.5
thereof due
within one year
59.8
31.1
247.5
338.4
Sundry financial liabilities essentially include liabilities to employees, outstanding purchase invoices and customers with
credit balances.
[28] Other liabilities
in millions of EUR
Prepaid expenses
Sundry liabilities
Total
2013
44.7
302.3
347.0
thereof due
within one year
44.7
297.9
342.6
2012
37.8
315.2
353.0
thereof due
within one year
37.8
312.4
350.2
Liabilities relating to social security amount to EUR 65.9 million (2012: EUR 65.9 million). In addition, sundry liabilities
include liabilities from other taxes of EUR 91.7 million (2012: EUR 91.1 million).
135
[29] Additional disclosures on financial instruments – carrying amounts, amounts recognized and fair values
by measurement category
Amount recognized in the statement
of financial position
Fair value
(recognized
directly in
Amortized
equity)
cost
50.3
1,152.7
1,210.1
Measurement
category under
IAS 39
AfS / HtM
LaR / n. a.
LaR
Carrying
amount
31 Dec.
2013
50.3
1,417.8
1,210.1
LaR
FAHfT / LaR
LaR
AfS / FAHfT / FAFVtpl
FAFVtpl / LaR
85.6
20.6
71.7
117.2
749.2
85.6
– 23.2
71.7
FLAC
FLAC
FLAC / n. a.
1,151.6
426.4
1,807.1
1,151.6
426.4
1,795.8
FLAC
FLAC / FLHfT
FLAC
17.0
20.0
269.9
17.0
– 8.2
269.9
thereof combined by measurement
category in accordance with IAS 39:
1Held-to-maturity investments
2Financial assets held for trading
(HtM)
(FAHfT)
30.9
43.8
30.9
3Financial assets (designated as)
at fair value through profit or loss
4Available-for-sale financial assets
5Loans and receivables
6Receivables from the leasing business
7Financial liabilities held for trading
8Financial liabilities at amortized cost
9Lease obligations
(FAFVtpl)
(AfS)
(LaR)
(n. a.)
(FLHfT)
(FLAC)
(n. a.)
134.1
70.6
3,178.0
265.1
28.2
3,652.5
11.3
in millions of EUR
Assets
Financial assets
Trade receivables
Securities
Trade payables
136
Fair value
through
profit
or loss
IAS
17
265.1
85.6
20.6
71.7
117.2
749.2
43.8
51.2
681.1
66.0
68.1
11.3
1,151.6
426.4
1,854.9
17.0
20.0
269.9
28.2
30.9
43.8
43.8
134.1
19.4
3,178.0
Fair
value
31 Dec.
2013
30.9
1,417.8
1,210.1
51.2
265.1
28.2
3,652.5
11.3
134.1
51.2
3,178.0
265.1
28.2
3,700.3
11.3
Amount recognized in the statement
of financial position
Fair value
(recognized
directly in
Amortized
equity)
cost
53.4
1,105.8
1,233.1
Fair value
through
profit
or loss
Measurement
category under
IAS 39
AfS / HtM
LaR / n. a.
LaR
Carrying
amount
31 Dec.
2012
53.4
1,337.7
1,233.1
LaR
FAHfT / LaR
LaR
AfS / FAHfT / FAFVtpl
LaR
48.8
47.5
71.3
105.2
571.5
48.8
– 35.2
71.3
571.5
48.8
47.5
71.3
105.2
571.5
FLAC
FLAC
FLAC / n. a.
1,147.8
404.6
1,618.2
1,147.8
404.6
1,609.3
1,147.8
404.6
1,768.0
FLAC
FLAC / FLHfT
FLAC
60.9
31.1
251.5
60.9
– 6.5
251.5
thereof combined by measurement
category in accordance with IAS 39:
1Held-to-maturity investments
2Financial assets held for trading
(HtM)
(FAHfT)
35.6
82.7
35.6
3Financial assets (designated as)
at fair value through profit or loss
4Available-for-sale financial assets
5Loans and receivables
6Receivables from the leasing business
7Financial liabilities held for trading
8Financial liabilities at amortized cost
9Lease obligations
(FAFVtpl)
(AfS)
(LaR)
(n. a.)
(FLHfT)
(FLAC)
(n. a.)
53.8
69.2
2,995.3
231.9
37.6
3,467.6
8.9
in millions of EUR
Assets
Financial assets
Trade receivables
Securities
Trade payables
IAS
17
231.9
82.7
51.4
53.8
8.9
60.9
31.1
251.5
37.6
35.6
82.7
82.7
53.8
17.8
2,995.3
Fair
value
31 Dec.
2012
35.6
1,337.7
1,233.1
51.4
231.9
37.6
3,467.6
8.9
53.8
51.4
2,995.3
231.9
37.6
3,617.4
8.9
137
The following tables show the measurement of the fair value of the Würth Group’s assets and liabilities by
hierarchical level
Assets and liabilities at fair value:
in millions of EUR
Derivative assets
Currency instruments
Interest instruments
Securities
Financial assets at fair value
Financial liabilities at fair value
in millions of EUR
Derivative assets
Securities
Financial assets at fair value
Financial liabilities at fair value
138
Total
31 Dec. 2013
Quoted prices in
active markets
(level 1)
Significant
observable inputs
(level 2)
2.9
40.9
117.2
68.1
229.1
0.0
0.0
51.2
68.1
119.3
2.9
40.9
66.0
0.0
109.8
0.8
27.4
28.2
0.0
0.0
0.0
0.8
27.4
28.2
Total
31 Dec. 2012
Quoted prices in
active markets
(level 1)
Significant
observable inputs
(level 2)
1.1
81.6
105.2
187.9
0.0
0.0
51.4
51.4
1.1
81.6
53.8
136.5
2.4
35.2
37.6
0.0
0.0
0.0
2.4
35.2
37.6
Notes on the fair values of those financial assets and liabilities that were not stated at fair value in the consolidated
statement of financial position:
in millions of EUR
Financial assets
Trade receivables
Financial assets not stated at fair value
Trade payables
Financial liabilities not stated at fair value
Total
31 Dec. 2013
30.9
1,417.8
1,210.1
85.6
71.7
681.1
3,497.2
1,151.6
426.4
1,854.9
17.0
269.9
3,719.8
Quoted prices in
active markets
(level 1)
0.0
0.0
0.0
0.0
0.0
681.1
681.1
0.0
0.0
0.0
0.0
0.0
0.0
Significant
observable inputs
(level 2)
30.9
1,417.8
1,210.1
85.6
71.7
0.0
2,816.1
1,151.6
426.4
1,854.9
17.0
269.9
3,719.8
in millions of EUR
Financial assets
Trade receivables
Financial assets not stated at fair value
Trade payables
Financial liabilities not stated at fair value
Total
31 Dec. 2012
35.6
1,337.7
1,233.1
48.8
71.3
571.5
3,298.0
1,147.8
404.6
1,768.0
60.9
251.5
3,632.8
Quoted prices in
active markets
(level 1)
0.0
0.0
0.0
0.0
0.0
571.5
571.5
0.0
0.0
0.0
0.0
0.0
0.0
Significant
observable inputs
(level 2)
35.6
1,105.8
1,233.1
48.8
71.3
0.0
2,494.6
1,147.8
404.6
1,768.0
60.9
251.5
3,632.9
139
I. Other notes
[1] Commitments and contingencies
in millions of EUR
Guarantees, warranties and collateral for third-party liabilities
2013
42.3
2012
48.6
2013
2012
215.3
363.5
72.6
651.4
223.5
373.0
58.7
655.2
314.2
313.8
40.7
109.4
0.1
150.2
1,115.8
45.8
107.1
1.2
154.1
1,123.1
Guarantees, warranties and collateral are due on call.
[2] Other financial obligations
in millions of EUR
Obligations from operating leases
due within 12 months
due in 13 to 60 months
due in more than 60 months
Purchase obligations
Sundry financial obligations
Total
The operating leases mainly relate to rented buildings and leased vehicles. The interest rates stipulated in the lease agreements are customary market rates. There are no purchase options upon expiry of the lease either for the rented buildings
or the leased vehicles.
The sundry financial obligations contain irrevocable lending commitments of Internationales Bankhaus Bodensee AG,
Friedrichshafen, Germany in the amount of EUR 141.7 million (2012: EUR 142.7 million).
The table below shows the payments from operating leases recognized in profit or loss:
in millions of EUR
Real estate
Machines, equipment, furniture and fixtures
Vehicles
Other
Total
140
2013
122.2
13.4
129.7
2.8
268.1
2012
115.6
12.8
138.9
0.5
267.8
[3] Contingent liabilities
As an international group with various areas of business, the Würth Group is exposed to many legal risks. This is especially
true of risks for warranties, tax law and other legal disputes. However, according to the assessment by the Central
Managing Board, no decisions are expected that would have a significant influence on the net assets of the Group.
Tax field audits at Group entities have not been completed yet and the related audit findings have not been reported yet.
[4] Financial instruments
Financial risk management
Through its financial activities, the Würth Group is subject to various risks that are assessed, managed and monitored
by a systematic risk management system.
Details of the Group’s management of market risks (exchange rates, interest rates. securities risks), credit risks and liquidity
exposures are presented below.
Exchange rate risks
The Würth Group is exposed to currency risks from financing and operating activities. By exchange rate risks, the Würth
Group means the exposure of the assets and income disclosed resulting from exchange rate fluctuations between the
transaction currency and the functional currency in each case.
As far as operations are concerned, the individual Group entities mainly carry out their activities in their own functional
currency. The currency risk for the Würth Group from current operating activities is therefore classified as low. Exchange
rate risks are countered by forward exchange contracts and currency options. Derivative financial instruments are used to
hedge future sales and goods purchases against exchange rate risks.
Regarding the presentation of market risks, IFRS 7 requires sensitivity analyses showing how profit or loss and equity
would have been affected by hypothetical changes in the relevant risk variable.
If the euro had depreciated (appreciated) against the US dollar, the pound sterling and the Swiss franc by 10% as of
31 December 2013, the hypothetical effect on profit or loss would have been as follows:
in millions of EUR
Currency
US dollar
Swiss franc
Hypothetical effect on profit or loss
2013
Depreciation
Appreciation
0.2
– 0.2
– 5.7
5.7
Hypothetical effect on profit or loss
2012
Depreciation
Appreciation
0.2
– 0.2
– 8.4
8.4
There were no changes affecting other comprehensive income.
141
Interest rate risks
By interest rate risk, the Würth Group means the negative effects on the net assets and results of operations resulting from
changes in interest rates. One of the methods used to counter this risk is to ensure that a large part of external financing is
in fixed-interest rate bonds. In addition, derivatives are used for risk management purposes (e.g., interest rate swaps).
The interest rate risk is mainly limited to the liabilities to banks with floating interest rates listed under [24] “Financial
liabilities” and the items presented under [12] “Receivables from finance leases” and under [23] “Liabilities from financial
services”.
Under IFRS 7, interest rate risks are presented using sensitivity analyses. These present the effects of changes in market
interest rates on interest payments, interest income and expenses, other components of profit or loss and, if applicable, on
equity.
If the market interest level had been 100 base points higher (lower) as of 31 December 2013, profit or loss would have
been EUR 7.9 million lower (higher) (2012: EUR 4.2 million). The hypothetical effect on profit or loss is mainly attributable
to overdraft facilities as well as receivables and liabilities from financial services. Equity would change accordingly.
There were no changes affecting other comprehensive income.
Securities risks
The Würth Group is exposed to securities risks because of its investments. Specifically, there is a risk of financial loss due
to changes in prices of (publicly traded) securities. One way of countering this risk is through diversification of the investment portfolio. When selecting bonds, a minimum rating of BBB (Standard & Poor’s) is generally required. The rating
development is monitored on a daily basis. If the bonds are downgraded by the rating agency, they are sold immediately.
In addition, derivatives are used for risk management purposes to hedge securities price risks.
Credit risk
The credit risk is countered by limiting business relationships to first class banks with a minimum rating of A- (Stanard & Poor’s).
Default risks from receivables are minimized by continuous monitoring of the creditworthiness of the counterparty and by
limiting the aggregated individual risks from the counterparty. Standardized master agreements of the International Swaps
and Derivatives Association (ISDA master agreements), including the Credit Support Annex (CSA), are in place with those
external counterparties of the Würth Group with whom it enters into transactions as part of its financial risk management.
The maximum credit risk is the carrying amount of the financial assets recognized in the statement of financial position.
The credit risk from operating activities is accounted for by recognizing a portfolio-based specific allowance on trade
receivables.
Liquidity risks
The Würth Group needs liquidity to meet its financial obligations. Group entities are obliged by Group guidelines to deposit
any excess cash not needed to meet current obligations with Würth Finance International B.V., ‘s-Hertogenbosch, the
Netherlands, or Adolf Würth GmbH & Co. KG, Künzelsau, Germany, to make it available to the Würth Group. The high
142
international credit rating received by the Würth Group (Standard & Poor’s issued an A rating on the Würth Group’s
non-current liabilities) means that the Group can obtain favorable terms for procuring funds on international capital
markets. In order to be in a position to meet its payment obligations at any time, even in extraordinary circumstances, the
Würth Group also maintains lines of credit with various banks to cover potential liquidity bottlenecks.
Capital management
The primary objective of the Würth Group’s capital management is to ensure that it maintains a strong credit rating and
healthy equity ratio. The Group manages its capital structure in light of changes in economic conditions. In addition, the
financial service providers within the Group comply with the applicable regulatory capital requirements. No changes were
made to the objectives, policies and processes as of 31 December 2013 and 31 December 2012. The equity ratio, calculated as equity in accordance with IFRSs divided by total assets, is 42.6% (2012: 41.9%). This means that the equity ratio is
higher than the industry average, and ensures the Würth Group an investment grade A rating at present. Regarding a US
private placement, the Würth Group is also required to comply with a certain ratio of senior liabilities to equity.
Fair value of financial instruments
The fair value of financial instruments that are included in the portfolio of available-for-sale financial assets and financial
assets held for trading is estimated by comparing them with the market price on the reporting date.
The fair value of financial instruments designated as of fair value through profit or loss is determined using the valuation
techniques presented under [19] “Securities”.
The loss resulting from adjusting the fair value of financial assets at fair value through profit or loss amounted to EUR 2.0
million in the fiscal year (2012: gain of EUR 1.1 million) and was recorded in full in profit or loss for the period. The fair value
of forward exchange contracts is measured using the closing rates on the forward exchange markets. Interest rate swaps
are measured at fair value on the basis of the present value of estimated future cash flows. The fair value of options is
measured using option-pricing models. The Würth Group has a policy of obtaining confirmation of the fair value of all the
above instruments by the banks that arranged the respective contracts for the Würth Group.
The financial instruments not recognized at fair value within the Würth Group primarily comprise certain cash equivalents,
trade receivables, other current assets, other non-current assets, trade payables, and other liabilities, overdraft facilities,
non-current loans and held-to-maturity investments.
The carrying amount of cash equivalents and overdraft facilities approximates fair value due to the high liquidity of the
financial instruments.
The historical cost carrying amount of receivables and payables subject to normal trade credit terms also approximates
fair value.
The fair value of non-current liabilities is based on the market price for these liabilities or similar financial instruments or on
the current interest rates for borrowing at similar terms and conditions. The amounts reported in the statement of financial
position approximate fair value and are presented separately in note [29] “Additional disclosures on financial instruments”.
143
Derivative financial instruments
As of the reporting date, the fair value of derivate financial instruments was as follows:
in millions of EUR
Type
Foreign exchange
forward contracts
Currency options (OTC)
Total currency instruments
Interest rate swaps
Cross-currency swaps
Swaptions (OTC)
Total interest instruments
Compensation of credit risk through CSA
Net replacement value
Contract value or
nominal value
2013
2012
Positive replacement
value
2013
2012
Negative replacement
value
2013
2012
664.4
0.0
664.4
642.3
33.2
675.5
2.9
0.0
2.9
0.5
0.6
1.1
0.8
0.0
0.8
1.8
0.6
2.4
994.0
51.7
25.0
1,070.7
1,028.9
117.7
20.0
1,166.6
29.4
11.5
0.0
40.9
23.2
0.6
56.3
25.3
0.0
81.6
35.2
16.4
26.2
0.9
0.3
27.4
8.2
32.4
2.3
0.5
35.2
6.5
As part of financial risk management, a credit support annex (CSA) was entered into. For this reason, the positive and
negative replacement values of the interest instruments were all presented net in the statement of financial position, i.e.,
after taking into account the cash settlement under the CSA.
[5] Leases
Lessee
The net carrying amount of assets leased under finance leases breaks down as follows:
in millions of EUR
Real estate
Machines, equipment, furniture and fixtures
Vehicles
Total
2013
7.0
1.5
2.3
10.8
The vast majority of finance leases relate to real estate. These agreements are generally designed to include a purchase
option and a renewal option. Furthermore, some contain price escalation clauses based on the Euribor. There are no
significant restrictions imposed by lease agreements.
144
2012
4.8
0.8
2.7
8.3
Minimum lease installments over the remaining terms of the finance lease agreements and their present value are as
follows:
in millions of EUR
Minimum lease payments from finance leases
less expected future interest payments
Present value of minimum lease payments
thereof
2013
2.6
8.2
2.5
2012
2.3
6.3
1.6
13.3
0.6
1.1
0.3
11.3
10.2
0.5
0.7
0.1
8.9
1.9
7.2
2.2
1.8
5.6
1.5
Lessor
The consolidated group also contains some entities that specialize in leases. These entities are responsible for intercompany lease transactions, among other things. They also have finance lease agreements with third parties, primarily for
machines, equipment, furniture and fixtures, and vehicles.
Reconciliation of the total gross investment to the present value of finance leases – lessor:
in millions of EUR
31 December
2013
2012
due within
12 months
2013
2012
due in
13 to 60 months
2013
2012
Total lease installments
(gross total investments in the lease)
Lease installments already received
Lease installments (future minimum lease payments)
thereof: lease payments already sold
Unearned finance income
585.0
255.1
329.9
247.2
29.3
557.6
250.6
307.0
231.2
26.0
112.6
86.0
9.8
108.7
80.5
11.0
201.9
150.5
17.4
192.3
147.3
14.0
15.4
10.7
2.1
6.0
3.4
1.0
53.4
49.8
16.8
17.2
34.0
31.0
2.6
1.6
Present value of the outstanding minimum
lease payments
due in more than
60 months
2013
2012
The finance leases are mainly hire-purchase arrangements or full payout lease agreements with a maximum term of over
90% of the leased assets’ estimated useful life. The contracts can only be terminated for due cause for which the counterparty is responsible.
Valuation allowances of EUR 0.5 million (2012: EUR 0.7 million) were recognized in the fiscal year for uncollectible
outstanding minimum lease payments.
145
[6] Related parties
Basically, related parties are members of the Würth family and entities controlled by them as well as key management
personnel (members of the Würth Group’s Central Managing Board and Executive Vice Presidents), members of the
Advisory Board of the Würth Group, the Management Board of the Würth Group’s Family Trusts, the Supervisory Board of
the Würth Group’s Family Trusts and close family members of the aforementioned groups of persons. Related parties also
include the family trusts. Related party transactions were all conducted at arm’s length.
Payments of EUR 210.3 million (2012: EUR 180.7 million) were made to members of the Würth family and the family trusts
for distributions and usufructary rights. Of the payments made, an amount of EUR 152.2 million (2012: EUR 110.3 million)
was paid back as a capital contribution.
The transactions and interest income and expenses listed below were effected between the Würth Group and the Würth
family, members of the Central Managing Board, the Executive Vice Presidents, as well as the Management Board and
the Supervisory Board of the Würth Group’s Family Trusts and the Advisory Board of the Würth Group:
in millions of EUR
Purchased services
Services rendered
Interest cost
Interest income
Lease/rental expense
Remuneration of the Management Board and Supervisory Board of the Würth
Group‘s Family Trusts, and the Advisory Board
2013
3.1
0.2
1.4
1.0
4.1
2012
4.3
0.4
2.0
1.3
3.4
4.7
3.3
2013
7.9
23.5
2.0
17.0
2012
2.8
26.4
1.4
51.4
The following receivables and liabilities arose from these transactions:
in millions of EUR
Loan receivable
Loan liabilities
In addition, close family members of key management personnel received wage and salary payments of EUR 0.3 million
(2012: EUR 1.0 million). In addition, there are liabilities from financial services amounting to EUR 0.2 million (2012: EUR
0.1 million).
146
The interest income and expenses listed below were transacted between the Würth Group and the family trusts:
in millions of EUR
Lease/rental expense
Interest cost
Interest income
2013
1.0
2.6
0.7
0.0
2012
1.0
2.0
0.7
0.2
These transactions gave rise to loan receivables of EUR 62.1 million (2012: EUR 22.4 million). As the result of the acquisition of shares in parent companies, there was also a purchase price liability of EUR 9.5 million in fiscal year 2012.
The receivables due from and liabilities due to related parties for financial services are subject to market interest rates.
All other purchased services are also rendered at market terms and conditions.
[7] Compensation of key management personnel
in millions of EUR
Short-term employee benefits
Post-employment benefits
Benefits due to the end of the employment relationship
Total
2013
20.8
0.1
0.3
21.2
2012
21.8
0.6
0.0
22.4
Individual members of the Central Managing Board and the Executive Vice Presidents have a right to pension benefits
with a total present value of EUR 15.5. million (2012: EUR 20.0 million). Former members and their surviving dependants
are also entitled to benefit payments. The present value of the resulting benefit obligations totaled EUR 13.9 million (2012:
EUR 9.9 million).
[8] Government grants
The Würth Group received government grants of EUR 2.7 million in the form of investment subsidies for infrastructure
projects (2012: EUR 2.1 million). Of this amount, EUR 1.3 million (2012: EUR 0.9 million) was deducted from the assets’
carrying amounts and EUR 1.4 million (2012: EUR 1.2 million) was immediately recognized in profit or loss.
147
[9] Auditor’s fees
The following table shows, on aggregate, the fees incurred for the services provided by the auditor Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft, Stuttgart, Germany in the fiscal year 2013:
2013
2.0
0.1
0.1
0.1
2.3
in millions of EUR
Audit
Assurance services
Tax services
Other fees
Total
[10] Events after the reporting period
As of 18 February 2014, the Würth Group acquired a 100% of the shares in Korea Fasteners Ltd., Anseong-Si, South
Korea. The purchase price amounted to EUR 1.5 million.
[11] Exemption from the duty of partnerships and stock corporations to prepare, audit and disclose financial
statements
The following German group entities organized as partnerships made use of the exemption clause according to
Sec. 264b HGB for the fiscal year 2013:
Entity
Abraham Diederichs GmbH & Co. oHG
Adolf Menschel Verbindungstechnik GmbH & Co. KG
Arnold & Shinjo GmbH & Co. KG
Arnold Umformtechnik GmbH & Co. KG
Baier & Michels GmbH & Co. KG
CONMETALL GmbH & Co. KG
Conpac GmbH & Co. KG
Enzinas Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs KG
Gavia Grundstücksverwaltungsgesellschaft mbH & Co. Objekte Ratingen und
Ingolstadt Vermietungs OHG
Registered office
Wuppertal
Plettenberg
Künzelsau
Dörzbach
Forchtenberg
Ober-Ramstadt
Celle
Celle
Mainz
Mainz
Glessdox GmbH & Co. KG
Grass GmbH & Co. KG
Neuenstein
Reinheim
148
Entity
H. Sartorius Nachf. GmbH & Co. KG
Hetal-Werke Franz Hettich GmbH & Co. KG
Hommel Hercules-Werkzeughandel GmbH & Co. KG
IMS-Verbindungstechnik GmbH & Co. KG
IVT Installations- und Verbindungstechnik GmbH & Co. KG
LOGO Grundstücksgesellschaft mbH & Co. oHG
Marbet Marion & Bettina Würth GmbH & Co. KG
Panoramahotel Grundstücksgesellschaft mbH & Co. Objekt Waldenburg oHG
PIRUS Grundstücksgesellschaft mbH & Co. oHG
Schössmetall GmbH & Co. KG
Siller & Laar Schrauben- Werkzeug- und Beschläge- Handel GmbH & Co. KG
Sonderschrauben Güldner GmbH & Co. KG
SWG Schraubenwerk Gaisbach Besitz-GmbH & Co. KG
Swiridoff Verlag GmbH & Co. KG
Synfiber AS & Co. Beschränkt haftende KG
Teudeloff GmbH & Co. KG
TUNAP Deutschland Vertriebs-GmbH & Co. Betriebs-KG
TUNAP Industrie Chemie GmbH & Co.Produktions KG
Uni Elektro Fachgroßhandel & Co. Grundstücksverwaltungsgesellschaft OHG
UNI ELEKTRO Fachgroßhandel GmbH & Co. KG
Wagener & Simon WASI GmbH & Co. KG
Waldenburger Beteiligungen GmbH & Co. KG
Werkzeugtechnik Niederstetten GmbH & Co.KG
WLC Würth-Logistik GmbH & Co. KG
Würth Elektrogroßhandel GmbH & Co. KG
Würth - Elektronik GmbH & Co KG
Würth Elektronik eiSos GmbH & Co. KG
Würth Elektronik FLATcomp Systems GmbH & Co. KG
Würth Elektronik ICS GmbH & Co. KG
Würth GmbH & Co. KG Grundstücksgesellschaft
Würth Immobilien-Leasing GmbH & Co.KG
Würth Industrie Service GmbH & Co. KG
Würth IT International GmbH & Co. KG
Würth Leasing GmbH & Co. KG
Würth Modyf GmbH & Co. KG
Würth TeleServices GmbH & Co. KG
Würth Versicherungsdienst GmbH & Co. KG
Registered office
Ratingen
Alpirsbach
Viernheim
Neuenstein
Rohr
Göppingen
Künzelsau
Göppingen
Göppingen
Freilassing
Augsburg
Niederstetten
Waldenburg
Künzelsau
Worms
Waldenburg
Wolfratshausen
Wolfratshausen
Eschborn
Eschborn
Wuppertal
Künzelsau
Niederstetten
Künzelsau
Künzelsau
Niedernhall
Waldenburg
Pforzheim
Öhringen
Künzelsau
Göppingen
Bad Mergentheim
Bad Mergentheim
Göppingen
Künzelsau
Künzelsau
Künzelsau
149
The following German group entities organized as corporations made use of the exemption clause according to
Sec. 264 (3) HGB for the fiscal year 2013:
Entity
AHD Auto-Hifi & -Design GmbH
Comgroup GmbH
Dinol GmbH
Dringenberg GmbH Betriebseinrichtungen
E3 Energie Effizienz Experten GmbH
Erbschloe Werkzeug Vertriebsgesellschaft mbH
ESB Grundstücksverwaltungsgesellschaft mbH
FEGA & Schmitt Elektrogroßhandel GmbH
FFP Montageteileproduktion Vertriebs-GmbH
Flugplatz Schwäbisch Hall GmbH
HAHN+KOLB Werkzeuge GmbH
HSR GmbH Hochdruck Schlauch + Rohr Verbindungen
INDUNORM Hydraulik GmbH
KERONA GmbH
Lichtzentrale Lichtgroßhandel GmbH
Meister Werkzeuge GmbH
Meister-Werkzeuge, Werkzeugfabrik Vertriebsgesellschaft mbH
„METAFRANC“ Möbel- u. Baubeschläge Vertriebsgesellschaft mbH
Panorama Hotel- und Service GmbH
Pronto-Werkzeuge GmbH
Reca Norm GmbH
REISSER Schraubentechnik GmbH
Schmitt Elektrogroßhandel GmbH
SWG Schraubenwerk Gaisbach GmbH
UNI ELEKTRO Handels- und Beteiligungs-GmbH
WOW ! Würth Online World GmbH
Würth Elektronik iBE GmbH
150
Registered office
Ingelfingen
Bad Mergentheim
Lügde
Obersulm-Sülzbach
Künzelsau
Wuppertal
Eschborn
Ansbach
Waldenburg
Schwäbisch Hall
Ludwigsburg
Duisburg
Duisburg
Ingelfingen
Ansbach
Wuppertal
Wuppertal
Wuppertal
Waldenburg
Wuppertal
Kupferzell
Ingelfingen
Künzelsau
Fulda
Waldenburg
Eschborn
Künzelsau
Thyrnau
J. Notes to the consolidated statement of cash flows
In accordance with IAS 7, the consolidated statement of cash flows shows how the Würth Group’s cash has changed over
the fiscal year as a result of cash received and paid. It is classified by cash flows from operating, investing or financing
activities.
The cash flow from operating activities is derived indirectly from the earnings before taxes. Specifically, the figure for earnings before taxes is adjusted for income tax payments, finance costs and finance revenue, interest income from operating
activities, changes in obligations from post-employment benefits, non-cash amortization, depreciation, impairment and
reversals of impairment as well as losses and gains on the disposal of non-current assets and other non-cash expenses and
income.
The effects of acquisitions and other changes in the consolidated group have been eliminated. When purchased subsidiaries are included for the first time, only the actual cash flows are shown in the consolidated statement of cash flows. Cash
and cash equivalents in the consolidated statement of cash flows consist of cash on hand and bank balances as well as
highly liquid short-term investments and other cash equivalents.
The effects of acquisitions and other changes in the consolidated group on the consolidated statement of cash flows have
been considered separately. We refer to “C. Consolidated group”.
151
K. List of shareholdings
WÜRTH LINE CRAFT
Entity
Registered office
Würth
Group
share
%
Albania
Würth Albania Ltd.
Entity
100
Würth Argentina S.A.
Canuelas
100
Colombia
Wumet Argentina S.A.
Canuelas
100
Würth Colombia SA
Argentina
Yerevan
100
Dandenong South
100
Böheimkirchen
100
Baku
100
Minsk
100
Turnhout
100
Sarajevo
100
Cotia
100
Sofia
100
Würth Danmark A/S
Würth Dominicana S.A.
WURTH ECUADOR S.A.
Aktsiaselts Würth
Würth Oy
Mladá Boleslav
100
Kolding
100
Santo Domingo
100
Quito
100
Tallinn
100
Riihimäki
100
Erstein
95
Erstein
100
Tiflis
100
Künzelsau
100
Kryoneri, Attiki
100
Budaörs
100
Garðabær
100
Georgia
100
Germany
Mississauga
100
Würth Modyf GmbH & Co. KG
Würth Georgia Ltd.
Greece
Santiago de Chile
100
Wurth Hellas S.A.
Hungary
Wuerth (Shenyang) Hardware & Tools Co., Ltd.
Shenyang
100
Würth Szereléstechnika KFT
Würth (Chongqing) Hardware & Tools Co., Ltd.
Chongqing
100
Iceland
Würth á Íslandi ehf.
Würth (Guangzhou) International
152
100
Würth France SA
Oakville
China
Trading Co., Ltd.
Zagreb
Würth Modyf France S.A.R.L.
100
Chile
Würth Chile Ltda.
Würth, spol. s r.o.
Phnom Penh
Canada
Würth Canada Ltd., Ltée
Würth-Hrvatska d.o.o.
France
Cambodia
McFadden‘s Hardwood & Hardware Inc.
100
Finland
Bulgaria
Wuerth (Cambodia) Ltd.
La Uruca, San José
Estonia
Brazil
Würth Bulgarien EOOD
Würth Costa Rica, S.A.
Ecuador
Bosnia and Herzegovina
Wurth do Brasil Peças de Fixação Ltda.
100
Dominican Republic
Belgium
WURTH BH d.o.o.
Bogotá
Denmark
Belarus
Würth België N.V.
100
Czech Republic
Azerbaijan
FLLC “WurthBel”
Tianjin
Croatia
Austria
Wurth Azerbaijan LLC
100
Costa Rica
Australia
Würth Handelsgesellschaft m.b.H.
Wurth Hong Kong Co., Ltd.
Wuerth (Tianjin) International Trade Co., Ltd.
Armenia
Würth Australia Pty Ltd
Hong Kong
China
Tirana
Würth LLC
Registered office
Würth
Group
share
%
Guangzhou
100
WÜRTH LINE CRAFT
Entity
Registered office
Würth
Group
share
%
India
Bettina Wuerth Auto India Private Limited
Marion Wuerth India Pvt. Ltd.
Entity
Registered office
Würth
Group
share
%
Petaling Jaya
100
Malaysia
Mumbai
100
Wuerth (Malaysia) Sdn. Bhd.
Malta
Delhi
100
Reinhold Wuerth India Pvt. Ltd.
Chennai
100
Würth Limited
Zebbug
99
Wuerth India Pvt. Ltd.
Mumbai
100
Würth Mediterranean Limited
Zebbug
100
P.T. Wuerth Indah
Jakarta
100
Würth Caraïbes SARL
Ducos
100
Wuerth Indonesia P.T.
Jakarta
100
Mexico
Morelos
100
Limerick
100
Chisinau
100
Caesarea
100
Ulan Bator
100
Podgorica
100
Windhoek
100
’s-Hertogenbosch
100
Auckland
100
Hagan
100
Panama Stadt
100
Lima
100
Laguna
100
Warsaw
100
Würth Modyf Lda.
Sintra
100
Würth (Portugal) Técnica de Montagem Lda.
Sintra
100
Indonesia
Martinique
Ireland
Würth (Ireland) Limited
Würth México S.A. de C.V.
Israel
Würth Israel Ltd.
Moldova
Wurth S.R.L.
Italy
Mongolia
Wuerth Mongolia LLC
Modyf S.r.l.
Termeno
100
Montenegro
Würth S.r.l.
Neumarkt
100
Wurth d.o.o. Podgorica
Japan
Würth Japan Co., Ltd.
Namibia
Yokohama
100
Jordan
Wurth - Jordan Co. Ltd.
Netherlands
Amman
100
Kazakhstan
Wuerth Kazakhstan Ltd.
Almaty
100
Nairobi
100
Gračanica
100
Bishkek
100
Riga
100
Beirut
100
Würth Polska Sp. z o.o.
Portugal
Vilnius
100
Macedonia
Wurth Makedonija DOOEL
Wuerth Philippines, Inc.
Poland
Lithuania
Wurth Lietuva
Würth Perú S.A.C.
Philippines
Lebanon
Wurth Lebanon SAL
Würth Centroamérica S.A.
Peru
Latvia
SIA Wurth
Würth Norge AS
Panama
Kyrgyzstan
Würth Foreign Swiss Company Ltd.
Wurth New Zealand Ltd.
Norway
Kosovo
Würth-Kosova Sh.p.k.
Würth Nederland B.V.
New Zealand
Kenya
Wuerth Kenya Ltd.
Wurth Namibia
Skopje
100
153
WÜRTH LINE CRAFT
Entity
Registered office
Würth
Group
share
%
Romania
Würth Romania S.R.L
Würth Russia
“Würth Eurasien” Aktiengesellschaft
Otopeni
100
Würth AG
St. Petersburg
100
Würth Taiwan Co. Ltd.
Moscow
100
Thailand
Yekaterinburg
100
Wuerth (Thailand) Company, Limited
Belgrade
100
Würth Sanayi Ürünleri Tic. Ltd. Sti.
Bratislava
100
Wurth (Northern Ireland) Ltd.
Würth spol. s r.o.
Bratislava
100
Würth U.K. Ltd.
Slovenia
Würth Ukraine Ltd.
100
Isando
100
Hanam
100
Las Palmas
100
Wurth Louis and Company
Würth España, S.A.
Palau-solità i Plegamans
100
Oliver H. Van Horn Co., LLC
Würth Modyf S.A.
Palau-solità i Plegamans
100
Wurth USA Inc.
Würth Gulf FZE
South Korea
Wurth Wood Group Inc.
Nugegoda
100
Örebro
100
Sweden
Würth Svenska AB
154
100
Mimarsinan
100
Belfast
100
Erith
100
Vyshgorod
100
Dubai
100
Barros Blancos
100
Vernon Hills, Illinois
100
Brea, California
100
New Orleans, Louisiana
100
USA
Wurth Baer Supply Co.
Sri Lanka
Wurth Lanka (Private) Limited
Bangkok
Uruguay
Wurth del Uruguay S.A.
Spain
WÜRTH CANARIAS, S.L.
100
United Arab Emirates
Trzin
South Africa
Wurth Korea Co., Ltd.
Taipeh
UK
Hommel Hercules France, s.r.o.
Wuerth South Africa (Pty.) Ltd.
100
Turkey
Slovakia
Würth d.o.o.
Arlesheim
Taiwan
Serbia
Wurth d.o.o.
Registered office
Switzerland
Russia
Wuerth North-West JSC
Entity
Würth
Group
share
%
Ramsey, New Jersey
100
Charlotte, North Carolina
100
Ho-Chi-Minh City
100
Vietnam
Wurth Vietnam Company Limited
WÜRTH LINE INDUSTRY
Entity
Registered office
Würth
Group
share
%
Australia
Thomas Warburton Pty. Ltd.
Entity
Mulgrave
100
Würth Service Supply de Mexico
Grâce-Hollogne
100
EDL Fasteners Ltd.
Würth Industry Belux S.A.
Grâce-Hollogne
100
Norway
São Bernardo do Campo
100
Indianapolis
100
Brazil
Arvid Nilsson Norge AS
Canada
Action Bolt (Pty.) Ltd.
Shanghai
100
Spain
Wuerth (China) Co., Ltd.
Shanghai
100
Würth Industria España, S.A.
Denmark
Kolding
100
Erstein
100
Bad Mergentheim
100
100
Otopeni
100
Durban
100
Barcelona
100
Kungälv
100
Askim
100
Mimarsinan
100
Sanford, Florida
100
Turkey
Würth Industrie Service Endüstriyel
India
Hizmetler Pazarlama Limited Sirketi
USA
Pune
100
Marine Fasteners Inc.
Maple Grove, Minnesota
100
Petaling Jaya
100
Wurth Action Bolt & Tool Co.
Riviera Beach, Florida
100
Wurth RevCar Fasteners, Inc.
Roanoke, Virginia
100
Malaysia
Wuerth Industrial Services Malaysia Sdn. Bhd.
Arvid Nilsson Sverige AB
Würth Industri Nordiska AB
Germany
Wuerth Industrial Services India Pvt. Ltd.
Dokka
Sweden
France
Würth Industrie Service GmbH & Co. KG
100
South Africa
Arvid Nilsson Logistics & Trade (Shanghai) Co., Ltd.
Würth Industrie France S.A.S.
Manukau
Romania
S.C. Wurth Industrie S.r.l.
China
Arvid Nilsson A/S
100
New Zealand
Würth Industry Belgium N.V.
Wurth Industry of Canada Ltd.
Indianapolis
Mexico
Belgium
SW Industry Peças de Fixação Ltda.
Registered office
Würth
Group
share
%
Würth Adams Nut & Bolt Company
Mexico
Würth McAllen Bolt de Mexico S de RL de CV
Reynosa
100
Wurth/Service Supply Inc.
Würth McAllen Maquila Services S de RL de CV
Reynosa
100
Wurth Snider Bolt and Screw, Inc.
Indianapolis, Indiana
100
Louisville, Kentucky
100
155
Entity
Registered office
Würth
Group
share
%
Austria
Eichmann Elektrofachgroßhandel GmbH
Linz
100
Walter Kluxen GmbH
Hamburg
100
Riga
100
Vilnius
100
Wrocław
100
Moscow
100
Latvia
Pilsen
100
Tallinn
100
Estonia
Talger-Elektrotehnika Osaühing
Registered office
Germany
Czech Republic
Elfetex spol. s r.o.
Entity
Würth
Group
share
%
SIA Baltjas Elektro Sabiedriba
Lithuania
Germany
UAB ELEKTROBALT
Poland
FEGA & Schmitt Elektrogroßhandel GmbH
Ansbach
100
Fega Poland Sp. z o.o.
Lichtzentrale Lichtgroßhandel GmbH
Ansbach
100
Russia
UNI ELEKTRO Fachgroßhandel GmbH & Co. KG
Eschborn
100
OOO “Fega”
Registered office
Würth
Group
share
%
TRADE
Entity
Austria
CONMETALL spol. s r.o.
Opava
100
Espoo
100
Strasbourg
100
Finland
Vienna
67
Mechelen
100
France
Duvimex Belgium BvbA
Edegem
100
Meister France S.A.S.
Tunap Benelux nv
Lokeren
100
Belgium
CONMETALL N.V.
Registered office
Czech Republic
TUNAP chemisch-technische Produktions und Handelsgesellschaft m.b.H.
Entity
Würth
Group
share
%
Ares Oy Nikotips
SWG France SARL
Forbach
100
Brazil
Tunap France SAS
Dachstein
67
TUNAP do Brasil Comércio de Produtos
Germany
Químicos Ltda.
São Paulo
67
China
Arnold & Shinjo GmbH & Co. KG
Dörzbach
100
Baier & Michels GmbH & Co. KG
Ober-Ramstadt
100
Celle
100
Hong Kong
100
CONMETALL GmbH & Co. KG
Meister Tools Trading (Shanghai) Co., Ltd.
Shanghai
100
Conpac GmbH & Co. KG
Celle
100
Tunap (Shanghai) International Trading Co., Ltd.
Shanghai
67
Meister Werkzeuge GmbH
Wuppertal
100
Glessdox GmbH & Co. KG
Neuenstein
100
IMS-Verbindungstechnik GmbH & Co. KG
Neuenstein
100
Rohr
75
DIY Products Asia Ltd.
Wuerth Baier & Michels (Shanghai) Automotive
Fastener Co., Ltd.
Shanghai
100
Croatia
EXtraMont d.o.o.
156
IVT Installations- und Verbindungstechnik
Zagreb
100
GmbH & Co. KG
TRADE
Entity
Registered office
Würth
Group
share
%
Germany
KERONA GmbH
Kisling (Deutschland) GmbH
Schössmetall GmbH & Co. KG
Teudeloff GmbH & Co. KG
YOUR OWN BRAND GmbH
Ingelfingen
100
Meister Romania Srl
Bad Mergentheim
100
Reisser Tehnic s.r.l.
Freilassing
100
Russia
Waldenburg
100
IVT Ural, O.O.O.
TUNAP Russia OOO
Wolfratshausen
51
Serbia
Neutraubling
90
Extramont - limited responsibility company Belgrade
Greece
TUNAP Hellas EPE
Van Roij Fasteners Hungaria Kft.
TUNAP Asia-Pacific Pte. Ltd.
Belgrade
100
Singapore
67
Reisser Tornillería SLU
Barcelona
100
Dunaharaszti
100
RUC Holding Conmetall S.A.
Barcelona
100
SWG Schraubenwerk Gaisbach Espana, S.L.U.
Barcelona
100
Tunap Productos Quimicos S.A.
Barcelona
67
Sollentuna
67
Oberwil-Lieli
100
Mimarsinan
100
Istanbul
67
100
Tunap Sverige AB
Glessdox SRL
Termeno
100
Switzerland
Masidef S.r.l.
Airproduct AG
Sweden
Caronno Pertusella
100
Tunap Italia S.r.l.
Terlano
67
Unifix SWG S.r.l.
Terlano
100
Meister el Aletleri Teknolojik Urunler Ithalat
Milan
100
Ihracat ve Ticaret Ltd. Sti.
Netherlands
Turkey
Tunap Kimyasal Ürünler Pazarlama Ltd. Sti.
Deurne
100
UK
Oslo
100
YOUR OWN BRAND UK Ltd.
Hagan
67
REISSER - POL Sp. z o.o.
Chelmno
100
TUNAP Polska Sp. Z o.o.
Warsaw
67
Norway
Tunap Norge AS
67
Spain
Padua
Synfiber AS
100
Moscow
100
Italy
Van Roij Fasteners Europe B.V.
Bolshoj Istok
Szár
67
Your Own Brand S.R.L
100
67
Jakarta
Baier & Michels S.r.l.
100
Thessaloniki
Indonesia
PT. TUNAP INDONESIA
Otopeni
Cluj Napoca
Singapore
Hungary
REISSER Csavar Kft
Registered office
Romania
TUNAP Deutschland Vertriebs-GmbH
& Co. Betriebs-KG
Entity
Würth
Group
share
%
Tunap (UK) Limited
Poland
Tonbridge
67
Cheddar
100
Greer, South Carolina
100
USA
Baier & Michels USA Inc.
157
PRODUCTION
Entity
Registered office
Würth
Group
share
%
Australia
Grass Australia/New Zealand Pty Ltd.
Melbourne
100
REISSER Schraubentechnik GmbH (1)
SWG Schraubenwerk Gaisbach GmbH (1)
Höchst
100
TUNAP Industrie Chemie GmbH & Co.
Kemacos Full Filling Service GmbH
Kematen in Tyrol
100
Produktions KG
Schmid Schrauben Hainfeld GmbH
Hainfeld
100
Werkzeugtechnik Niederstetten GmbH & Co.KG
Ponta Grossa
100
Canada
Grass Canada Inc.
Toronto
100
Felo Szerszámgyár Kft.
Grass Italia SRL
Diffutherm B.V.
Changzhou
100
Norway
Arnold Fasteners (Shenyang) Co., Ltd.
Shenyang
100
Dokka Fasteners AS
Grass (Shanghai) International Trading Co., Ltd.
Shanghai
100
Poland
Cesky Krumlov
100
Kolding
100
Czech Republic
Dringenberg Polska Sp. z o.o.
Denmark
Dokka Fasteners A/S
Grass Iberia, S.A.
Anneyron
100
Grass Nordiska AB
Switzerland
BB Stanz- und Umformtechnik GmbH
Chemofast Anchoring GmbH
100
Pordenone
100
Bergeijk
100
Dokka
100
Zagan
100
Montague Gardens
100
Elgeta
100
Jönköping
100
Wetzikon
100
Hinwil
100
Plettenberg
100
InovaChem Engineering AG
100
KMT Kunststoff- & Metallteile AG
Berga
100
Kisling AG
Wetzikon
100
Märstetten
51
Bromsgrove
100
Solihull
100
100
TUNAP AG
Lügde
100
UK
Dringenberg GmbH Betriebseinrichtungen
Obersulm-Sülzbach
100
Grass Movement Systems Ltd
FELO-Werkzeugfabrik Holland-Letz GmbH
Neustadt
100
Tooling International Ltd.
Grass GmbH & Co. KG
Reinheim
100
USA
Grass Vertriebs GmbH Deutschland
Eger
Forchtenberg
Willich-Münchheide
Dinol GmbH
100
Sweden
Adolf Menschel Verbindungstechnik GmbH &
Arnold Umformtechnik GmbH & Co. KG
100
Niederstetten
Spain
Germany
Co. KG
Wolfratshausen
South Africa
Grass ZA (Pty.) Ltd.
France
Arnold Technique France
100
Netherlands
AP Winner (Changzhou) Chemical
GRASS CZECH s.r.o.
100
Waldenburg
Italy
China
Technology Co., Ltd.
Ingelfingen-Criesbach
Hungary
AP Winner Indústria e Comércio de Produtos
Químicos Ltda.
Registered office
Germany
Austria
Grass GmbH
Entity
Würth
Group
share
%
Ofterdingen
100
Arnold Fastening Systems, Inc.
Auburn Hills, Michigan
100
Hetal BV GmbH
Alpirsbach
100
Cardinal Fastener Inc.
Bedford Heights, Ohio
100
Hetalco GmbH
Alpirsbach
100
Dokka Fasteners Inc.
Auburn Hills, Michigan
100
Hetal-Werke Franz Hettich GmbH & Co. KG
Alpirsbach
100
Grass America, Inc.
Kernersville, North Carolina
100
Weilerbach
100
MKT Fastening L.L.C.
Lonoke, Arkansas
100
MKT Metall-Kunststoff-Technik GmbH & Co KG
(1): These entities also operate in the Trade segment.
158
ELECTRONICS
Entity
Registered office
Würth
Group
share
%
Austria
Würth Elektronik Österreich GmbH
Terlano
100
Wemsa S.A. de C.V.
Irapuato
100
Würth Elektronik Mexico S.A. de C.V.
Irapuato
100
’s-Hertogenbosch
100
Singapore
100
Molins de Rei
100
Enköping
100
Zürich
100
Entity
Italy
Schwechat
100
Bulgaria
Würth Elektronik iBE BG EOOD
Registered office
Würth
Group
share
%
Würth Elektronik Italia s.r.l.
Mexico
Belozem
100
Tianjin
100
Netherlands
Wurth Electronics (Chongqing) Co., Ltd.
Chongqing
100
Würth Elektronik Nederland B.V.
Wurth Electronics (Shenyang) Co., Ltd.
Shenyang
100
Singapore
China
Wuerth Electronic Tianjin Co., Ltd.
Wurth Electronics (Shenzen) Co., Ltd
Wurth Electronics (HK) Limited
Shenzhen
100
Wurth Electronics Singapore Pte. Ltd.
Hong Kong
100
Spain
Budweis
100
Sweden
Nurmijärvi
100
Switzerland
Czech Republic
Würth Elektronik IBE CZ s.r.o.
Würth Elektronik España, S.L.
Finland
Würth Elektronik Oy
Würth Elektronik Sweden AB
France
Würth Elektronik (Schweiz) AG
Meyzieu
100
Taiwan
Würth Elektronik eiSos GmbH & Co. KG
Waldenburg
100
Taiwan Branch
Taipeh
100
Würth - Elektronik GmbH & Co KG
Niedernhall
94
Wurth Electronics Co., Ltd.
Taipeh
100
Thyrnau
100
UK
Öhringen
100
Würth Electronics UK Ltd.
Manchester
100
Dayton, Ohio
100
Watertown, South Dakota
100
Würth Elektronik France SARL
Germany
Würth Elektronik iBE GmbH
Würth Elektronik ICS GmbH & Co. KG
Würth Elektronik eiSos GmbH&Co KG
India
Wuerth Elektronik CBT India Private Limited
USA
Mysore
100
Wurth Electronics ICS, Inc.
Wuerth Elektronik India Pvt Ltd
Bangalore
100
Wurth Electronics Midcom Inc.
Wurth Electronics Services India Private Limited
Bangalore
100
159
RECA GROUP
Entity
Registered office
Würth
Group
share
%
Austria
Kellner & Kunz AG
Vienna
100
Ternat
100
Sarajevo
100
Bosnia and Herzegovina
RECA d.o.o., Sarajevo
Sofia
100
Shanghai
100
Varazdin
100
Normfest s.r.o.
Prague
90
reca spol. s r.o.
Brünn
100
Mundolsheim
75
Croatia
reca d.o.o.
160
Poznan
100
reca Polska Sp. z o.o.
Kraków
100
Bucharest
100
Belgrade
100
Bratislava
100
Maribor
100
Aldaya
100
Dietikon
100
Izmir
100
West Bromwich
100
Romania
Serbia
Slovakia
reca Slovensko s.r.o.
Reca D.O.O.
Velbert
100
reca Hispania S.A.U.
100
Switzerland
Augsburg
100
Budapest
100
Belfiore
100
Reca AG
Turkey
Reca Vida Alet ve Makine Parc. Tic. Ltd. Sti.
Italy
FIME S.r.l.
Normfest Polska Sp. z o.o.
Kupferzell
Hungary
Reca KFT
100
Spain
Siller & Laar Schrauben- Werkzeug und Beschläge- Handel GmbH & Co. KG
Eindhoven
A.J. Steenkist-Rooijmans B.V.
Slovenia
Germany
Reca Norm GmbH
100
reca d.o.o. Beograd
France
Normfest GmbH
96
Gazzolo
SO.FIM S.r.l.
Reca Bucuresti S.R.L.
Czech Republic
Reca Union France
100
Bussolengo
Poland
China
reca (Shanghai) Intern. Trading Co., Ltd.
Termeno
SCAR S.r.l.
Netherlands
Bulgaria
Reca Bulgaria EOOD
FINK S.r.l.
Entity
Italy
Belgium
Reca Belux
Registered office
Würth
Group
share
%
UK
reca-uk ltd
TOOLS
Entity
Registered office
Würth
Group
share
%
Austria
Hommel & Seitz GmbH
Metzler GmbH & Co. KG
Vienna
100
HAHN + KOLB Hungaria Kft.
Rankweil
100
India
HAHN+KOLB TOOLS Chennai Pvt Ltd
Sofia
100
China
HAHN+KOLB Tools Pvt. Ltd.
Chongqing
100
HAHN + KOLB POLSKA Sp. z o.o.
HAHN+KOLB (Guangzhou) Tools Co., Ltd.
Guangzhou
100
HHW Hommel Hercules PL Sp. z o.o.
Tianjin
100
Romania
Czech Republic
HAHN+KOLB ROMANIA SRL
Prague
100
Germany
H. Sartorius Nachf. GmbH & Co. KG
HAHN+KOLB Werkzeuge GmbH
Hommel Hercules-Werkzeughandel GmbH & Co. KG
SVH Handels-GmbH
100
Chennai
100
Pune
100
Poznan
100
Katowice
100
Otopeni
100
Moscow
100
Belgrade
100
Wednesbury
100
Russia
HHW-Hommel Hercules Werkzeughandel
CZ/SK s.r.o.
Budapest
Poland
HAHN+KOLB (Chongqing) Tools Co., Ltd.
HAHN + KOLB (Tianjin) International Trade Co., Ltd.
Registered office
Hungary
Bulgaria
Hahn i Kolb Instrumenti EOOD
Entity
Würth
Group
share
%
OOO Hahn+Kolb
Serbia
Ratingen
100
Hahn + Kolb d.o.o. Beograd
Ludwigsburg
100
UK
Viernheim
100
Monks & Crane Industrial Group Limited
Ludwigsburg
100
161
Entity
Registered office
Würth
Group
share
%
Australia
James Glen Pty Ltd
Registered office
Würth
Group
share
%
Verbindungen
Duisburg
100
INDUNORM Hydraulik GmbH
Duisburg
100
Entity
Germany
Lidcombe
100
Vienna
100
FASTINOX N.V.
Turnhout
100
Wagener & Simon WASI GmbH & Co. KG
HSR Belgium S.A./N.V.
Turnhout
100
Greece
Sofia
100
Austria
WASI-Rostfrei Schraubenhandelsges. mbH
Belgium
Sonderschrauben Güldner GmbH & Co. KG
Bulgaria
Wasi Bulgarien EOOD
Inox Mare Hellas SA
China
WASI (SHANGHAI) FASTENER TRADING CO., LTD.
WASI Tianjin Fastener Co., Ltd.
Shanghai
100
Inox Mare S.r.l.
Tianjin
100
Inox Tirrenica S.r.l.
Spinelli s.r.l
Zagreb
100
Denmark
WASI Inox Danmark ApS
Kolding
100
Ferrometal Baltic OÜ
Tallinn
100
Ferrometal Oy
Nurmijärvi
100
INTER-INOX Sarl
Meyzieu
100
100
Verona
100
Rimini
100
Fiumicino
100
Terlano
100
Otopeni
100
Belgrade
100
Palau-Solità i Plegamans
100
Arlesheim
100
Beylikdüzü
100
Switzerland
Modal Inox AG
Turkey
Inox Ege Metal Ürünleri Dis Ticaret Limited Sirketi
162
Thessaloniki
Spain
WASI Hispania, S.A.
France
100
Serbia
WASI d.o.o.
Finland
100
Wuppertal
Romania
Wasi Romania S.R.L.
Estonia
Niederstetten
Italy
HSR Italia S.r.l.
Croatia
WASI d.o.o.
HSR GmbH Hochdruck Schlauch + Rohr
FINANCIAL SERVICES
Entity
Registered office
Würth
Group
share
%
Denmark
Entity
Registered office
Würth
Group
share
%
Triesen
100
Luxembourg
100
’s-Hertogenbosch
100
Rorschach
100
Chur
100
Dietikon
100
Registered office
Würth
Group
share
%
Port Louis
100
Trollhättan
100
Liechtenstein
Würth Leasing Danmark A/S
Kolding
100
Germany
Würth Financial Services AG
Luxembourg
Internationales Bankhaus Bodensee AG
Friedrichshafen
90
Würth Reinsurance Company, S.A.
Waldenburg
100
Netherlands
Würth Immobilien-Leasing GmbH & Co.KG
Göppingen
100
Würth Finance International B.V.
Würth Leasing GmbH & Co. KG
Göppingen
100
Switzerland
Künzelsau
100
Würth Financial Services AG
Waldenburger Versicherung AG
Würth Versicherungsdienst GmbH & Co. KG
Italy
Würth Invest AG
Würth Leasing Italia S.r.l.
Neumarkt
100
Registered office
Würth
Group
share
%
Würth Leasing AG
IT SERVICE AND HOLDING COMPANIES
Entity
Austria
Entity
Mauritius
RuC Holding GmbH
Böheimkirchen
100
Wurth Electronics Midcom International Holdings
Würth Beteiligungen Ges.m.b.H.
Böheimkirchen
100
Mauritius LTD
Würth Leasing International Ges. m.b.H.
Böheimkirchen
100
Sweden
China
Autocom Diagnostic Partner AB
Comgroup Information Technology (Shanghai)
Switzerland
Co., Ltd.
Shanghai
100
Lagerhaus Landquart AG
Landquart
100
Wuerth (China) Holding Co., Ltd.
Shanghai
100
Würth Elektronik International AG
Chur
100
Chur
99
Chur
100
Rorschach
100
Wednesbury
100
Kent
100
Germany
Comgroup GmbH
mind-IT GmbH
UNI ELEKTRO Handels- und Beteiligungs-GmbH
Bad Mergentheim
100
Würth ITensis AG
Schorndorf
100
Würth Management AG
Künzelsau
100
UK
Monks & Crane (Holdings) Limited
Eschborn
100
WABCOWÜRTH Workshop Services GmbH
Künzelsau
50
WOW ! Würth Online World GmbH
Künzelsau
100
USA
Bad Mergentheim
100
Wurth Electronics Inc.
Ramsey, New Jersey
100
Wurth Group of North America Inc.
Ramsey, New Jersey
100
Wurth Industry North America LLC
Ramsey, New Jersey
100
Würth Wood-Division Holding LLC
Ramsey, New Jersey
100
Würth IT International GmbH & Co. KG
Hungary
Würth Phoenix KFT
Budaörs
100
Italy
Würth Phoenix S.r.l.
Bolzano
Reca Plc
100
163
DIVERSIFICATION
Entity
Registered office
Würth
Group
share
%
Austria
marbet GmbH
munich one live communications Co., Ltd.
Wuerth International Trading (Shanghai) Co., Ltd.
Vienna
100
EOS KSI Forderungsmanagement GmbH & Co. KG
Marbet Marion & Bettina Würth GmbH & Co. KG
OTD Originalteile-Direkt GmbH
Shanghai
100
marbet Marion & Bettina Würth s.r.l.
Peking
100
Slovakia
Shanghai
100
Würth International Trading s. r. o.
Leifers
100
Bratislava
100
Künzelsau
50
FINCA INTERMINABLE, S.L.
Maspalomas
100
98
marbet Eventos S. A.
Barcelona
100
Künzelsau
100
marbet Viajes Espana S. A.
Barcelona
100
Switzerland
100
100
Pfronstetten-Aichelau
25
WLC Würth-Logistik GmbH & Co. KG
Künzelsau
Würth Aviation GmbH
Künzelsau
Würth Inter Werbung GmbH
Würth Logistics Deutschland GmbH
164
100
Schwäbisch Hall
Erlenbach
PARAVAN GmbH
Künzelsau
Spain
Waldenburg
Panorama Hotel- und Service GmbH
Würth TeleServices GmbH & Co. KG
Italy
Germany
Flugplatz Schwäbisch Hall GmbH
Registered office
Germany
China
marbet (Shanghai) events Co., Ltd.
Entity
Würth
Group
share
%
Pfäffikon
94
Würth Logistics AG
Obersee Bilingual School AG
Chur
100
100
Würth Promotional Concepts AG
Chur
100
100
USA
Kissing
100
Wurth International Trading America, Inc.
Bremen
100
Wurth Logistics USA Inc.
Ramsey, New Jersey
100
Indianapolis, Indiana
100
OTHER ENTITIES
Entity
Registered office
Würth
Group
share
%
Australia
EDL Fasteners Pty. Ltd.
Metzler GmbH
Eastern Creek
100
EOS KSI Verwaltungsgesellschaft für
Forderungsmanagement GmbH
Künzelsau
49
Kematen in Tyrol
100
Erbschloe Werkzeug Vertriebsgesellschaft mbH
Wuppertal
100
Feldkirch
100
ESB Grundstücksverwaltungsgesellschaft mbH
Eschborn
100
Belgium
Normfest Benelux SA/NV
Würth Belux N.V.
EuroSun GmbH
Zaventem
100
Turnhout
100
Brazil
Wurth Energia Solar do Brasil Ltda.
Cotia
100
Sofia
100
Midcom Hong Kong LTD
Würth Construction Tools Commercial (Beijing) Co., Ltd.
Würth (Shanghai) Hardware & Tools Co., Ltd.
100
Vermietungs OHG
Mainz
95
Reinheim
100
100
Grundstücksgesellschaft Berlin Chemnitz Erfurt GbR
Künzelsau
49
100
Grundstücksgesellschaft Cottbus Magdeburg GbR
Künzelsau
49
Alpirsbach
100
Rohr
75
Künzelsau
100
Beijing
100
Hettich-Verwaltungsgesellschaft mbH
Shanghai
100
IVT Installations- und Verbindungstechnik
Nicosia
100
Verwaltungs-GmbH
KOSY Gesellschaft zur Förderung des
holzverarbeitenden Handwerks mbH
Zelenec
100
Riihimäki
95
France
Grass France S.A.R.L.
Waldenburg
Gavia Grundstücksverwaltungsgesellschaft
Shenyang
Finnland
Recafinn Oy
94
Hong Kong
Czech Republic
Schössmetall, spol. s r.o.
45
Pullach im Isartal
mbH & Co. Objekt Willich KG
Grass Verwaltungs GmbH
Cyprus
Wurth Cyprus Ltd.
Freiburg im Breisgau
mbH & Co. Objekte Ratingen und Ingolstadt
China
HAHN+KOLB (Shenyang) Tools Co., Ltd.
FANDUS Grundstücks-Vermietungsgesellschaft
FFP Montageteileproduktion Vertriebs-GmbH
Bulgaria
Meister Bulgaria
Registered office
Germany
Austria
CC-Czech Liegenschaftsverwaltungs GmbH
Entity
Würth
Group
share
%
LOGO Grundstücks-Verwaltungsgesellschaft mbH
Göppingen
100
LOGO Grundstücksgesellschaft mbH & Co. oHG
Göppingen
100
Künzelsau
100
Marbet Marion & Bettina Würth Verwaltungs-GmbH
Meister-Werkzeuge, Werkzeugfabrik Vertriebs-
Chaville
100
gesellschaft mbH
Volgelsheim
100
Menschel Verbindungstechnik Verwaltungs-GmbH
Abraham Diederichs GmbH & Co. oHG
Wuppertal
100
Vertriebsgesellschaft mbH
AHD Auto-Hifi & -Design GmbH
Künzelsau
100
MKT Metall-Kunststoff-Technik Beteilungs-
CHEMOFAST Beteiligungs-GmbH
Künzelsau
100
gesellschaft mbH
Celle
100
nordberliner Elektro-Großhandels-Gesellschaft mbH
Celle
100
Panoramahotel Grundstücksgesellschaft mbH &
Künzelsau
100
Co. Objekt Waldenburg oHG
Göppingen
100
PIRUS Grundstücks-Verwaltungsgesellschaft mbH
Göppingen
100
PIRUS Grundstücksgesellschaft mbH & Co. oHG
Göppingen
100
Würth Solar France SAS
Germany
CONMETALL Vermietungsgesellschaft mbH
CONMETALL Verwaltungs-GmbH
E 3 Energie Effizienz Experten GmbH
100
100
Wuppertal
100
Weilerbach
100
Eschborn
100
“METAFRANC” Möbel- u. Baubeschläge
Enzinas Grundstücksverwaltungsgesellschaft
mbH & Co. Vermietungs KG
Wuppertal
Waldenburg
Mainz
94
165
OTHER ENTITIES
Entity
Registered office
Würth
Group
share
%
Germany
Pronto-Werkzeuge GmbH
Schmitt Elektrogroßhandel GmbH
Sonderschrauben Hamburg GmbH Eiben & Co.
Registered office
Casablanca
100
Well
100
Karatschi
100
Poznan
100
Alhos Vedros
100
Cluj Napoca
100
Morocco
Wuppertal
100
Würth Maroc SARL
Fulda
100
Netherlands
Künzelsau
100
Normfest Nederland B.V.
Pakistan
SWG Schraubenwerk Gaisbach Besitz-GmbH &
Co. KG
Entity
Würth
Group
share
%
Würth Pakistan (Private) Limited
Waldenburg
90
Worms
100
Poland
TUNAP Industrie Chemie GmbH
Wolfratshausen
100
WASI Polska Sp. Z.o.o.
TUNAP Deutschland Vertriebs - GmbH
Wolfratshausen
51
UNI ELEKTRO Fachgroßhandel GmbH
Linden
100
Eschborn
100
Viterie Venete Balkan S.r.l.
Künzelsau
100
Spain
Schwäbisch Hall
100
Isa Eolica S.L.
Madrid
100
Künzelsau
100
Lo Mejor para Ti S.L.
Madrid
100
Barcelona
100
GmbH
Pforzheim
100
Planta Fotovoltaica Cervatillos C. 100 SL
Madrid
100
Würth GmbH & Co. KG Grundstücksgesellschaft
Künzelsau
100
Rasgos Europeos S.L.
Madrid
100
Göppingen
100
WS Murcia Anbesol PM S.L.
Madrid
100
Künzelsau
100
Würth Industrie Logistik Espana S.A.
Vitoria
100
Dresden
100
Sweden
Örebro
100
SYNFIBER AS & Co. beschränkt haftende KG
Werkzeugtechnik Niederstetten Verwaltungs-GmbH
WS Solarbeteiligungen Schwäbisch Hall GmbH
Würth Elektronik ICS Verwaltungs-GmbH
marbet Servicios Creativos S.A.
Würth Elektronik FLATcomp Systems Verwaltungs-
Würth Leasing Verwaltungsgesellschaft mbH
Würth Logistic Center Europe GmbH
Würth Montagetechnik GmbH
Reca Portugal, S.A.
Romania
Uni Elektro Fachgroßhandel & Co. Grundstücks verwaltungsgesellschaft OHG
Portugal
Greece
WASI Sverige AB
Würth Solar Hellas Anonimi Eteria of Services for
Switzerland
Comgroup (Schweiz) AG
Biel
100
Hungary
Lagerhaus Mezzovico SA
Mezzovico
100
“Hommel Hercules Werkzeughandel”
SMP Swiss Macro Polymers AG
Wetzikon
100
Production of Electric Energy from Solar Energy
Kryoneri, Attiki
100
Hungária Szerszám Kereskedelmi Kft
Budapest
100
UK
Schössmetall Hungària Kft.
Budapest
100
Advanced Fastener Technology Ltd.
Italy
Anchorfast Limited
Padua
100
Winzer Würth Industrial Ltd.
Rubano
100
USA
WS Power Plant 3 S.r.L.
Seriate
100
R. W. Ramsey Realty Corporation
Würth Solar Italia s.r.l.
Terlano
100
SolarMarkt US Corp. dba Session Solar
Italian Padua Energy Roof Srl
Viterie Venete S.r.l.
166
Solihull
100
Wednesbury
100
Erith
100
Ramsey, New Jersey
100
Scotts Valley, Kalifornien
100
L. The boards
Advisory Board
The Advisory Board is the supreme supervisory and controlling body of the Würth Group. It advises on strategy, approves
corporate planning as well as the use of funds. It appoints the members of the Central Managing Board, the Executive Vice
Presidents as well as the managing directors of the companies generating high sales.
(as of 31 December 2013)
Bettina Würth
of the Würth Group
Dr. Bernd Thiemann
Deputy Chairman of the Advisory
Board of the Würth Group (up until
31 December 2013), former Chairman of the Management Board of
Deutsche Genossenschaftsbank AG,
Frankfurt / Main
Axel C. A. Krauss
Member of the Supervisory Board of
Unilever Deutschland, Hamburg
Dr. Bernd-Albrecht von Maltzan
former Divisional Board Member
and Senior Advisor Private Wealth
Management Deutsche Bank AG,
Frankfurt / Main
Rolf Bauer
Member of the Advisory Board (up
until 31 December 2013), former
Dr. Martin H. Sorg
Certified Public Accountant, Partner
of the law firm Binz & Partner,
Stuttgart
Peter Edelmann
Managing Partner of
Edelmann & Company, Ulm
Dr. h. c. Uwe Zimpelmann
(up until 31 December 2013),
former Spokesman of the Management Board of Landwirtschaftliche
Rentenbank, Frankfurt / Main
Honorary Chairman
of the Advisory Board
Prof. Dr. h. c. mult. Reinhold Würth
Chairman of the Supervisory Board of
the Würth Group’s Family Trusts
Honorary Member
of the Advisory Board
Dr. Michael Rogowski
Chairman of the Foundation Board of
Hanns-Voith-Stiftung, Heidenheim
Dr. Frank Heinricht
Chairman of the Management Board
of Schott AG, Mainz
167
The Central Managing Board is the most senior decision-making board of the Würth Group. It has four members and is
comparable to the management board of a group holding company. Its most important duties include corporate strategy
planning, the selection of executives as well as the management of strategic business units and functions.
Robert Friedmann
Chairman of the Central Managing
Peter Zürn
Deputy Chairman of the Central Managing Board of the Würth Group
Uwe Hohlfeld
(since 1 July 2013)
Michel Kern
(up until 30 June 2013)
Joachim Kaltmaier
Jürg Michel
Wolfgang Rampmaier
Dr. Reiner Specht
168
Executive Vice Presidents
The Executive Vice Presidents constitute the operational management of the Würth Group. Each of the members is in charge
of one strategic business unit or responsible for one functional area.
Joachim Breitfeld
Chemicals Group
Rainer Bürkert
Würth Line Industry (excl. USA)
Jürgen Graf
Logistics
Helmut Gschnell
Würth Line Italy,
Würth Albania,
Specialists in Italy
Norbert Heckmann
Chairman of Adolf Würth
GmbH & Co. KG
Bernd Herrmann
Electrical Wholesale, Information
Technology and Logistics, IT Group
Ulrich Häfele /Ernst Wiesinger
RECA Group
Uwe Hohlfeld
Head of Finance of
Adolf Würth GmbH & Co. KG,
Deputy Member of the Central
Michel Kern
Würth Line Asia (excl. China), Würth
Line Oceania, Würth Switzerland,
(since 1 July 2013)
Thomas Klenk
Purchasing and Product, DIN/
Standard Stainless Steel Parts
Dr. Reiner Specht
Würth Line South America, Russia
and sub-regions of southern and
western Europe, Trade unit,
Deputy Member of the Central
(since 1 July 2013)
Robert Stolz
Würth Line Auto USA,
Würth Line Wood USA and Canada
Jürgen Klohe /Jörg Murawski
Würth Elektronik Group
Jürg Michel
Würth Line China,
Würth Finance Group
(1 July 2013 – 31 December 2013)
Svein Oftedal
Würth Line UK,
Ireland, Scandinavia (without
Finland), Würth South Africa
Marc Strandquist
Würth Line Industry USA
(since 1 July 2013)
Zekeriya Uluca
Würth Line Turkey and Sub-region Asia
C. Sylvia Weber
Director of Museum Würth/Kunsthalle
Würth, Curator of the Würth Collection
Juan Ramírez
Würth Line Spain, France,
Central and South America
Mario Weiss
Würth Line South-Eastern Europe,
Balkan states
Pentti Rantanen
Würth Group Finland and
Baltic Countries
Alois Wimmer
Production of Screws
and Anchors
Markus Würth
Special projects
169
AUDIT OPINION OF THE
INDEPENDENT AUDITOR
The following audit opinion was issued by the Group auditor on the full consolidated financial statements
including the list of shareholdings and the Group management report:
“We have audited the consolidated financial statements prepared by the Würth Group, Künzelsau, comprising the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial
position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the notes to the
consolidated financial statements, together with the Group management report for the fiscal year from 1 January to
31 December 2013. The preparation of the consolidated financial statements and the Group management report in accordance with IFRSs as adopted by the EU, as well as the additional requirements of German commercial law pursuant to Sec.
315a (1) HGB [“Handelsgesetzbuch”: German Commercial Code] is the responsibility of the Group management of the
Würth Group. Our responsibility is to express an opinion on the consolidated financial statements and the Group management report based on our audit. In addition we have been instructed to express an opinion as to whether the consolidated
financial statements comply with full IFRS.
We conducted our audit of the consolidated financial statements in accordance with Sec. 317 HGB and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of
Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that misstatements
materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the Group management report are
detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the
Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The
effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the Group management report are examined primarily on a test basis within the framework
of the audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the
determination of entities to be included in consolidation, the accounting and consolidation principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements
and management report. We believe that our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs as adopted by
the EU, the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB and the IFRSs as a whole
and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with
these requirements. The Group management report is consistent with the consolidated financial statements and as a whole
provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development.”
Stuttgart, 14 March 2014
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Wollmert
Wirtschaftsprüfer [German Public Auditor]
170
Blesch
Wirtschaftsprüfer [German Public Auditor]
IMPRINT
Published by
Würth Group
Designed by
Buena la Vista AG, Frankfurt
Reinhold-Würth-Strasse 12–17
74653 Künzelsau
Germany
Realized by
Scanner GmbH, Künzelsau
Content responsibility
Robert Friedmann, Joachim Kaltmaier
Editorial team
Dr. Janina Knab (editor-in-chief), Sigrid Schneider
(managing editor), Maria Theresia Heitlinger,
Silke Hofmann, Stefanie Koch, Ralf Schaich,
Martina Skibowski, Mara Wawer, Claudia Zürn
The editorial team would like to thank the many
people who helped prepare this annual report.
All of the information in this annual report was
made available by Adolf Würth GmbH & Co. KG
and its affiliated companies and is for information
purposes only. No liability or warranty is assumed/
provided for the accuracy of the information.
This Annual Report is available in German and
English. The German version shall prevail.
The German and English versions of this annual report
and further information about the Würth Group can
be found on the Internet at www.wuerth.com
Contact details
Press and Public Relations
of the Würth Group
Phone +49 7940 15-1186
Fax +49 7940 15-4400
[email protected]
Edited by
Lorie Burns, Ina Christov
Printed by
Firmengruppe APPL, aprinta druck,
Wemding
Photo credits
Ufuk Arslan (p. 29)
Wernhild Baars (p. 31)
Norbert Guthier (pp. 10, 14, 18)
Russell LaBounty (p. 35)
Sammy Minkoff (p. 24)
Museum Folkwang / Sebastian Drüen (p. 34)
Salzburg Foundation / Manfred Siebinger (p. 30)
Scanner GmbH (pp. 37, 48, 50–55, 57)
Julia Schambeck (p. 28)
Andi Schmid (pp. 24, 33)
Philipp Schönborn (p. 24)
Wolfgang Uhlig (pp. 2–9)
Virginie Vabre (p. 24)
Thies Wachter (p. 27)
Würth archive (pp. 22, 38, 39, 56)
© Würth Group, Künzelsau
Printed in Germany. All rights reserved.
May not be reproduced, in part or in whole,
without prior consent.
1GFP–BV–SC–APPL–3,2’–05/14

Annual Report of the Würth Group 2013

Transcription

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