09.402 KHS_MR 2008_engl.qxd

MANAGEMENT REPORT 2008
AT A GLANCE:
KHS WORLD 2008
The global economic downturn reached the mechanical engineering industry in the course of the business
year 2008, causing a decline in incoming orders at KHS World (i.e. the KHS Group plus the KHS Beverages
companies). The negative EBT figure resulted above all from precautionary depreciation and risk provisions
for the Chinese subsidiary. The equity ratio is an encouraging 44%.
KHS WORLD AT A GLANCE
KHS Group KHS Beverages
companies
2008
Incoming orders
Revenues
Order backlog
Employees at year end
Personnel costs
Revenue per employee
EBITDA
EBIT
EBT
Investments
Depreciation
Balance sheet total
Shareholders’ equity
Equity ratio
* = Individual values, not consolidated
€ million
€ million
€ million
Number
€ million
€ thousand
€ million
€ million
€ million
€ million
€ million
€ million
€ million
%
756
911
267
5,256
245
173
29
-11
-18
55
18
635*
278
44
2008
72
75
29
434
23
173
7
2
2
56
5
141*
100
71
KHS World
KHS Group
Change
2008
2007
in %
828
986
296
5,690
268
173
36
-9
-16
111
23
773
378
47
957
996
410
5,111
229
195
55
40
34
27
15
637
289
45
-21.0
-8.5
-34.9
2.8
7.0
-11.3
-47.3
-127.5
-152.9
103.7
20.0
-0.3
-3.8
-3.0
09
GROUP MANAGEMENT REPORT FOR KHS WORLD
09
10
11
12
15
16
18
20
20
21
22
Business Operations and Macroenvironment
Net Assets, Financial Position, and Results of Operations
Investments
Research and Technology
Quality Management
Environmental Protection
Employees
Further Information
Risk Report
Forecast Report
Events since the End of the Business Year
26
REPORT BY THE SUPERVISORY BOARD
30
FINANCIAL STATEMENTS FOR KHS WORLD
30
32
36
Balance Sheets for KHS World
Income Statement for KHS World
FURTHER INFORMATION
36
37
38
41
KHS Group Companies
KHS Beverages Companies
Supervisory Board, Executive Management Board, and their Mandates
Publisher’s Notes
04
The Executive Management Board
Left to right:
Georg Michels
Dr.-Ing. Johann Grabenweger
Burkhard Becker
Volker Till
Roland Flach (Chairman)
05
As a leading global supplier of filling and packaging technology for over 140 years,
LONG-TERM STRATEGY of corporate activity. Our success
is based on a SUSTAINABLE TRIO of economic performance, ecological
KHS pursues a
responsibility, and social commitment.
Only lasting financial gain enables a company to invest in new equipment, in research
and development, and above all in the
EXPERT KNOWLEDGE OF ITS
EMPLOYEES. Qualitative and permanent growth has top priority – as opposed
to merely striving for short-term profits. We consistently gear our business activities
towards one goal: namely that of offering our customers worldwide products and
services in
PREMIUM QUALITY – anytime and anywhere.
The KHS Group has always supported ecological economic principles. These involve
the careful handling of resources, recognizing the ecological implications of all of our
projects, processes, and developments in good time, and incorporating these into
our plans accordingly. KHS’
ENERGY MANAGEMENT CONCEPT
defines and optimizes extensive potential energy savings and operating costs in practically all processes and product variants – not least through facilities sited close to
the customer throughout the globe.
Our
SOCIAL COMMITMENT focuses on people.
The highest demand for
quality, total reliability, and a deep sense of trust have forged a long-term bond
between our clients and us. Our staff are the company’s most important resource.
It is in these people that the Group’s technical,
ECONOMIC AND ECO-
LOGICAL EXPERTISE has manifested itself over decades.
We thus encour-
age the competence and commitment of those employed by us, for they are the key
to our long-lasting success.
Machines and systems for more
SUSTAINABILITY
06
IN ORDER TO USE LESS ENERGY
...
we make extensive use of mechanics in our Innoket 360 labeler, rendering
an energy-consuming vacuum system for the autosplicer superfluous.
07
08
INTRODUCTION/MANAGEMENT REPORT KHS WORLD
INTRODUCTION
Given that the audited annual financial state-
In the future, the situation of the KHS Group
ments of KHS AG and the main KHS companies have
and of the KHS Beverages companies will be alterna-
been included in the consolidated financial state-
tively disclosed in a separate management report for
ments of Klöckner-Werke AG, Duisburg, and of
KHS World. Reporting is based on the figures in the
Salzgitter AG, Salzgitter, which were based on IFRS
annual financial statements of the individual compa-
standards, the Executive Management Board of KHS
nies and essentially on the consolidation principles
AG has decided on cost grounds not to prepare finan-
that have also been applied in previous years.
cial subgroup statements for the KHS Group as from
the business year 2008.
The main companies in the KHS Group and
the KHS Beverages (PET) companies brought into
However, it should be noted in this regard
that simplified intercompany consolidation, without
capital consolidation, is carried out between the KHS
Group and the KHS Beverages companies.
Klöckner-Werke AG in the business year 2008 are
The annual financial statements of the com-
included in the Filling and Packaging Technology seg-
panies included in the management report are gen-
ment in the consolidated financial statements for
erally audited by external auditors.
Klöckner-Werke AG and in the Technology Division in
The figures given under the heading of KHS
the consolidated financial statements for Salzgitter
World are the combined figures of the KHS Group
AG. The respective annual financial statements have
and the KHS Beverages companies. For reasons of
been issued as an unqualified auditor’s report.
simplicity, the previous year’s figures (2007) denote
the figures for the KHS Group only.
09
MANAGEMENT REPORT
BUSINESS OPERATIONS AND MACRO-
In the past business year, the KHS Group
ENVIRONMENT
recorded €756 million in incoming orders, signifying
With effect from April 2, 2008, the Beverages com-
a year-on-year decline of €201 million or 21%.
panies were taken over by the Rank Group from
However, a severe decline of more than 40%
Salzgitter Mannesmann PET Technologie GmbH, a
was inflicted on the Eastern European business that
subsidiary of Salzgitter Mannesmann GmbH (a wholly
had grown disproportionately thanks to the boom in
owned subsidiary of Salzgitter AG). The product
previous years. China and India fared similarly. Com-
portfolios of KHS AG and in particular of KHS Cor-
pared to the previous year, the regions of North
poplast GmbH & Co. KG are complementary. Joint
America and Southern Europe/Africa were stable, or
handling of the market resulted in initial successes
improved slightly.
already being achieved in 2008.
In a business combination agreement dated
In the business year 2008, the KHS Beverages
companies recorded €72 million in incoming orders
July 31, 2008, the KHS Beverages companies were
incorporated in Klöckner-Werke AG, Duisburg, by
Salzgitter Mannesmann GmbH, Salzgitter; operational management of the Beverages companies is
REVENUE BY SEGMENT
the responsibility of KHS AG.
The crises afflicting the property and financial
markets have had severe impacts on the global economy in recent months.
34% Carbonated beverages
14% Other beverages
In the first months of 2008, mechanical engineering and plant construction were able to with-
4% Food & non-Food
stand the global decline, but the downturn is now
affecting these industries as well. Markets are facing an uncertain future, with the result that postponements of investment projects have had a sustained and detrimental impact on the incoming
orders received by the KHS Group and the KHS Beverages companies in the second half of 2008.
Incoming orders for KHS World amounted to
€828 million in the business year 2008.
48% Beer
10
MANAGEMENT REPORT KHS WORLD
The EBT of the KHS Beverages companies for
during the period from April 2, to December
the business year 2008 is €1.8 million. In total, KHS
31, 2008.
Demand in the last quarter fell short of expec-
World thus produced a negative EBT of €16.5 million.
The balance sheet total for KHS World is
tations because of the global financial crisis. Many
potential customers shelved their projects for the time
€773 million.
Of that total, €635 million stems from the
being. Despite significant growth in service provision,
KHS Group, whose balance sheet is therefore at the
the total volume of incoming orders fell.
same level as in the previous year (€637 million).
However, there were a number of changes
NET ASSETS, FINANCIAL POSITION, AND
within the balance sheet. On the asset side, non-cur-
RESULTS OF OPERATIONS
rent assets rose as a result of investments by €22 mil-
In the business year 2008, KHS World generated
lion, whereas current assets fell by €24 million.
€986 million in revenue.
This decline in current assets is mainly down
In the KHS Group, revenues amounted to
€911 million, or €85 million below the prior-year fig-
to lower trade receivables and to a reduction in
receivables from Klöckner-Werke AG.
ure of €996 million. This drop in revenues is mainly
Despite the fall in shareholders’ equity to
attributable to the negative effects of the global eco-
€278 million, resulting from the net loss for the year,
nomic crisis during the second half of the year and
the equity ratio for the KHS Group is still an impres-
had a noticeable impact on KHS Group earnings.
sive 44%.
However, the negative EBT of €18.3 million
The decrease in shareholders’ equity is offset
is principally due to the special effects of precaution-
on the equity and liabilities side by an increase in non-
ary write-downs and provisions for risk in the Chinese
current liabilities of around €3 million and by a €5
subsidiary KHS China GLM2 Co. Ltd., Shantou (China)
million rise in current liabilities.
Whereas trade payable fell by around €25
that reduced profits by a total of €28.5 million.
At €75 million, the revenue of KHS Beverages
companies was underpinned by a high level of orders
million, financial liabilities increased by approximately
€17 million.
The greater risks associated with the business
on hand at the beginning of the year and by a posi-
macroenvironment are reflected in a higher level of
tive growth in demand.
provisions, which were increased by a total €18 million.
The balance sheet total of the KHS Beverages
KEY EARNINGS FIGURES
companies rose to €141 million. This increase is
KHS World
KHS Group
Change
mainly attributable to the acquisition of IP rights as
2008
2007
in %
part of the takeover by Salzgitter Mannesmann
Incoming orders
828
957
-13.5
GmbH. This IP acquisition was initially financed by a
Revenues
986
996
-1.0
EBITDA
36
55
-34.5
By a resolution adopted on June 5, 2008, the
EBIT
-9
40
-122.5
debt owed to the partner was brought into the com-
EBT
- 16
34
-147.1
pany as a capital contribution, and added to capital
€ million
loan provided by the limited partner.
reserves.
11
The equity ration is 66% (previous year: 35%).
tem amounted to €22 million. Business is normally
KHS AG received a €70 million intercompany
conducted in euros.
credit line from Salzgitter Mannesmann GmbH,
Salzgitter, for the business year 2009. As at December 31, 2008, €34 million of the intercompany credit
INVESTMENTS
facility had been utilized.
Investments totaling €111 million were made by KHS
According to current estimates, there is therefore sufficient liquidity for the operative business of
World in the business year 2008.
Intangible assets include goodwill resulting
from the merger of KHS Asbofill GmbH, as well as
KHS AG.
The KHS Beverages companies are likewise
capitalized development costs for product innovation.
financed using the cash pooling system of Salzgitter
The focus of investing activities with respect
Mannesmann GmbH. The current credit line has not
to fixed assets was on IT and on various construction
been utilized to date. As at December 31, 2008, the
measures at the sites in Dortmund and Worms. The
financial receivables owed by Salzgitter Mannesmann
construction work in Dortmund pertained mainly to
GmbH (the cash pool leader) from the cash pool sys-
the head office complex; at the Worms plant, a new
BALANCE SHEET KHS WORLD ASSETS
BALANCE SHEET KHS WORLD EQUITY AND LIABILITIES
€ million
€ million
800
773
700
267
700
637
600
165
500
400
400
300
300
200
200
506
2008
472
2007
637
600
500
100
773
800
378
289
131
122
2007
Non-current assets
Shareholders’ equity
of which intangible assets: €121 million,
tangible assets: €131 million
Non-current liabilities
Current assets
Current liabilities
of which inventories: €159 million,
trade receivables: €273 million
264
226
100
2008
of which provisions: €101 million, financial liabilities: €28 million
of which provisions: €56 million,
trade payables: €110 million
12
MANAGEMENT REPORT KHS WORLD
assembly building was built. Mention should be also
Neuss, KHS Corpoplast GmbH & Co. KG, Hamburg,
made here of a patent acquired for the new drive
KHS Moldtec GmbH & Co. KG, Essen, KHS Plasmax
technology in the current KL series of labeling
GmbH, Hamburg, and KHS Hensen Packaging GmbH,
machines.
Verden, made various measures in the way the KHS
Expertpack GmbH, Korbach, and KHS Hensen
Technology Division is organized necessary. These
Packaging GmbH, Verden, were acquired by KHS AG
included the standardization of processes, a reduc-
in order to reinforce expansion of the new Flexible
tion in the number of components required, the use
Packaging Division.
of standardized norms, and the definition of suitable
The acquisition of KHS Asbofill GmbH by KHS
AG has strengthened our joint activities in the field of
aseptic filling.
interfaces, enabling the different CAD systems to
communicate with those in use at KHS.
Both Expertpack GmbH and KHS
In 2008, the KHS product portfolio was
Asbofill GmbH were merged with KHS AG in the cur-
streamlined by standardizing in some product areas,
rent business year.
with other product ranges extended and completed.
The volume of investments made by the KHS
Two main priorities were set in the eighty different
Beverages companies was €56 million, most of which
development projects. One of these was to cut pro-
– €55 million – was for acquisition of IP rights in con-
duction costs, in order to remain competitive in the
nection with the takeover of the Beverages compa-
face of falling prices; the other was the further func-
nies by Salzgitter Mannesmann GmbH.
tional development of the various products. Particular attention was paid to the aspect of sustainability
of KHS machines. This is much appreciated by KHS
RESEARCH AND TECHNOLOGY
customers. Prime concerns here are a substantial
At the start of the last business year, the KHS Tech-
reduction in media consumption, the careful use of
nology Division was reorganized. By condensing
resources, and a reduction in energy requirements.
the various engineering and design sectors, such as
These developments are constantly supplemented by
development and plant construction and conversion,
regular consultations and talks with our customers.
and by including documentation in the Technology
In addition to its major new developments,
Division, the capacities of our employees were used
the KHS Technology Division has close ties to associ-
with greater flexibility than in previous years. An
ations, technical universities, and educational institu-
internal exchange of knowledge and expertise has
tions for the packaging and beverage industries. As
thus been set up.
part of this collaboration, courses and diploma and
These organizational measures ensure that in
dissertation theses suggested by the KHS Technology
future products will be consistently developed in tune
Division are regularly assigned, the practical aspect of
with the market and that possible conversion and
which is studied at KHS. There are also frequent
upgrading of products already on the market are
exchanges with suppliers as to their suggestions for
taken into consideration at the design stage. All basic
improvement and the use of future technologies.
research activities are amalgamated at the new Inno-
Securing knowledge from digitally created
vation Center; developments that can be used by sev-
data is a key component of investment and use. The
eral Competence Centers are centrally coordinated.
constant development of electronic systems and com-
The integration of the new Klöckner-
munications setups makes protecting this knowledge
Werke/KHS Group subsidiaries KHS Asbofill GmbH,
increasingly difficult, however. Investing in IP rights
13
is thus more important than ever before. This necessity and the development in applications for patents
225 new patents and patent
applications; 1,500 existing
patents ...
can be observed throughout the entire mechanical
engineering industry. In the past business year KHS
... are the result of long-term development and research.
registered no fewer than 121 patents and was
granted 104 patents and 50 trademark rights.
Projects of note completed in 2008 include
the following.
only specialized but also more flexible. Innofill NV
Labeling technology: With the develop-
filling systems were introduced to the market to meet
ment of the Innoket 360, a roll-fed labeler for the
the high demands on technology and hygiene. These
wrap-around labeling of glass and plastic bottles, the
include the Innofill NV-H that specializes in hot-fill
foundations were laid for a completely new genera-
technology, nine of which Coca-Cola USA has already
tion of machines for various sizes of bottle and with
ordered and received in 2008. Other machines are
varying capacities. The first machines have been on
in operation in Russia and in the USA. With the new
the market since August and have proved successful
NV-H hot-fill system, still fruit juices are filled free
in practice right from the start. The output of these
flow in plastic bottles at a capacity of up to 60,000
first machines is 50,000 bottles per hour.
bottles per hour. The high-performance, volumetric
At the same time redevelopment of the mod-
filling valves have been developed in keeping with the
ular Innoket SE was begun, the roll-fed module of
Hygienic Design concept according to the latest
which is based on the Innoket 360 and already suc-
requirements.
cessfully in operation at the first customer plants.
Another new filling system, the Innofill DRV-
Palletizing technology: The Innopal LH is
VF/H, is now available in the same capacity range for
a new, particularly reasonably priced palletizer for the
the filling of carbonated soft drinks in combination
entry- to medium-capacity range that is equipped
with hot juice beverages. This has now closed gaps
with a variety of functions, from interlocked layer for-
in our portfolio.
mation to slip-sheet processing and pack turning.
By using an impeller flow meter as an alterna-
Other products in the field of packaging and
tive system of measurement for all machines with vol-
palletizing technology are currently being launched.
umetric filling, products without electrical conductiv-
These include the Innopack LF packer and the newly
ity can now be filled, such as cooking oil or even dem-
designed Innopal LD can depalletizer.
ineralized water. This system is characterized by its
Bottle washing technology: The Innoclean
high filling capacities and compact design. The first
series has now been rounded off by the Innoclean
machine thus equipped went into operation at the
SEC. This machine greatly reduces the use of ma-
Silver Springs Bottled Water Company in Florida in
terials through laser welding, which in turn leads to
October.
enormous savings in energy.
The platform for PET fillers is now com-
Filling technology: The number of different
plete. With the Innofill DRV for the filling of carbon-
filling systems was further considerably reduced in
ated and non-carbonated beverages, the Innofill NV
2008 through various standardization measures.
for the free-flow filling of still beverages and the
Customers now have access to systems that are not
Innofill DVF for the filling of beer in large PET bottles,
14
MANAGEMENT REPORT KHS WORLD
there are now three series of filler available for the
reporting, and the implementation of standard inter-
bottling of a huge range of products. Expansion of
faces. It enables devices to be linked to MES (Man-
the series for glass bottles will be completed by
agement Execution Systems), with which KHS equip-
drinktec 2009.
ment can be easily connected up to ERP (Enterprise
The successful volumetric Innofill DVD can
Resource Planning) systems such as SAP.
filling system has also been converted to the new
Inspection technology: The chief develop-
platform’s tubular ring vessel, now offering our cus-
ment in this Competence Center was Vision Circle,
tomers a number of important benefits. We have
software based on the laws of neural networking. In
made significant progress in the cleaning process
the future, using this all KHS image processing sys-
through the use of the tubular ring vessel and con-
tems will access a single software platform that
sistent Hygienic Design. The related lighter-weight
enables various applications through parameteriza-
design saves energy when heating and cooling dur-
tion alone.
ing sterilization. The filling valves are more readily
In 2008, this included the following: crate
Automatically
inspection with a camera model for the recognition
extendable and retractable rinsing caps are also new.
and sorting of bottles in crates, an alignment station
The first product to emerge from the collab-
to align bottles in our labelers, including seam recog-
oration on the blow molding technology championed
nition, a Cap Inclination Control for the reliable
by KHS Corpoplast GmbH & Co. KG, Hamburg, is the
detection of capping errors, such as the absence of
inclusion of a stretch blow molder in the
caps, crooked closures, damage, and the length of
filler/capper monoblock, implemented last year.
thread engagement and Party Can Orientation for the
These compact bottle manufacturing and filling sys-
alignment of non-symmetrical containers prior to
tems have enabled us to reduce the amount of space
packing. Furthermore, a new non-pneumatic guided
needed by our customers and to avoid investment in
bottle rejection system was engineered for systems
an air conveyor, now no longer required as a buffer
with capacities of up to 72,000 bottles per hour.
accessible and easier to service.
segment. The bottle gripper systems designed by
Flexible packaging: The new poucher intro-
KHS additionally allow continued development of
duced in 2007 was a big hit at the PMMI trade show
new lightweight bottles – a major factor when it
in Chicago.
comes to costs and assessing the impact of waste on
orders for five of these flexible machines with a high
the environment. A total of five systems have been
capacity and short changeover times to various
ordered by customers, including the very first
shapes of pouch.
The exhibition yielded spontaneous
monoblock for filling beer in PET bottles. The first
Keg technology: In the field of keg technol-
successfully accepted setup is the one with the new
ogy, the PETKEG filler continued to be modified and
impeller flow meter mentioned above for Silver
improved. This new technology was first used com-
Springs in Florida, USA.
mercially in May 2008 to fill 5- to 20-liter PET kegs and
Plant engineering: All functions of PMS
features the new non-returnable flat fitting from KHS.
(Plant Management System), successor to AIS
Many of the research and development activ-
(Plant Information System), are now complete and
ities of the KHS Beverages companies concentrated on
the system has already been installed on all new sys-
the design of a new Blomax series that is to super-
tems with HMIs (Human Machine Interfaces). PMS
sede Series 3. The second prototype was finished in
has been designed with regard to ease of operation,
2008 according to schedule and trials have begun.
15
QUALITY MANAGEMENT
remained at a level that was slightly lower or the
As expected, the surveillance audit carried out last
same as in the previous year. We attribute this posi-
year by TÜVCert as certifying body resulted in the
tive trend to the intensified application of quality
KHS AG quality system being certified once again for
management in the new combination with process
all locations.
management throughout the company, as described
On an international level, the sites in Waukesha
above.
and Sarasota (USA) and in São Paulo (Brazil) were also
The revised KHS 2010plus Change Program is
included in certification of the Group in the business
also having a positive effect on reducing the costs of
year 2008. The site in Ahmedabad, India, was likewise
quality within KHS; measures defined in previous
certified, but not as part of the group certification. The
years have been restructured and concentrated in
latter site is certified separately in accordance with ISO
special-focus projects.
9001:2000 and 14001:2004, and is included in the
global KHS 15 quality management system.
These special-focus projects are driven and
managed by a dedicated project organization, bud-
At the beginning of the business year 2008,
getary and time planning, as well as intensive
the central Quality Management department was
progress checks. The main aim of these special-focus
restructured. The central Process Management and
projects is to optimize business processes and imple-
Quality Management departments, which report
ment cost-reduction measures, in order to provide
directly to the Executive Management Board, were
important support to the positive development of
amalgamated. This restructuring is aimed at net-
KHS. One of these special-focus projects involves
working the task of process management (namely to
monitoring our quality management activities in the
design the KHS process model) more intimately with
context of the measures described above.
the monitoring function of quality management (to
ensure correct implementation of the process model
in day-to-day business operations), thus enhancing
ENVIRONMENTAL PROTECTION
the performance of KHS.
During the last business year, KHS also turned its
As part of the monitoring function of quality
attention to optimizing the environmental compati-
management, various QM methods (such as internal
bility of its processes and products at its various sites
audits, quality cost reporting) were brought into line
in the interest of its customers, employees, and the
with the process structure and applied uniformly and
environment.
consistently at the various company sites.
Its glass and PET beer bottling machines and
The process model was also harmonized and
can fillers were reworked during the business year
integrated with existing, revised, and newly issued
under review so that the new, tubular version of the
procedural instructions.
ring vessel already used in fillers for bottling soft
In addition to the monitoring function, the
drinks in PET could also be implemented in the above
specific processes essential to quality management
types of filler. This technology saves around 2 met-
and
intensified,
ric tons of material per machine on the 16 types of
expanded, and implemented to some extent in the
machine mentioned. Because of its smaller surface
structural organization of the production plants.
area, this version of the tubular ring vessel also
quality
assurance
were
also
Despite the enormous output in the business
years 2006 and 2007, our quality costs in 2008
reduces the amount of required cleaning media by
approx. 10%.
16
MANAGEMENT REPORT KHS WORLD
This cut in materials also has an advantageous
sus the energy losses occurring during the generation
effect on the amount of energy needed for heating and
of electricity in power plants (power plant efficiency
cooling during the sterilization of the relevant fillers.
is approx. 38%).
KHS has reworked the product startup, shut-
The direct gas heater thus cuts CO2 green-
down, and changeover phases of the filler and mixer
house gases by up to 60% compared to heating with
processes of its soft drink systems, thereby consider-
electricity.
ably reducing product loss (wastewater) and the
One of the main aspects of the business year
amounts of rinsing water and cleaning agents
2008 was consolidation and the increased implemen-
needed.
tation and application of the technological develop-
The monoblock series is a monoblocked sys-
ments of the last few years. The following examples
tem comprised of a bottle blow molder and a filler for
are given with regard to the protection of the envi-
PET bottles. This development permits economic use
ronment:
of materials by eliminating the necessity for the con-
• Savings in energy through the use of regenerative
necting conveyors otherwise needed, for example.
processes in the process and systems engineering
To date, empty PET bottles have been transported via
of bottle washing and pasteurizing equipment and
air conveyors from the blow molder to the filler. Gen-
the use of energy-saving bottle carriers in bottle
erating the necessary flow of air in the conveyors con-
washing machines
sumes a lot of energy. Savings in energy and also in
• Cuts in water consumption in bottle washing and
operating costs are achieved by removing the convey-
pasteurizing machines through the deployment of
ors from between the blow molder and filler. With
this system array, KHS now offers customers an interesting alternative to the conventional line layout.
KHS also offers its customers a recently devel-
new water-saving concepts
• A considerable reduction in the amount of chemicals required thanks to a new chemicals dosing
unit built into pasteurizers
oped shrink tunnel as another new alternative to its
• Improved standards of hygiene through the opti-
standard film shrink tunnel for packaging machines.
mization of and reduction in the surface areas of
This modern version is no longer heated by electric-
machines and components, thereby cutting down
ity, as in the past, but by a direct gas heater. The
on the use of cleaning agents and also lengthen-
energy balance is altogether very advantageous ver-
ing cleaning intervals
• A distinct cut in greenhouse gas CO2 through the
use of new filling systems and
• A decrease in the noise generated by conveyors
equipped with stainless-steel chains by modifying
A new PET monoblock
saves energy …
the chain return.
The implementation of energy-saving measures was also an important topic at the various KHS
AG sites over the last business year.
New heating systems were installed at the
… thus making a lasting contribution to environmental protection.
plants in Dortmund and Worms. According to an
economic efficiency calculation, the savings in energy
17
compared to the old heating systems are around
from the suppliers indicate that no problems are to be
20% for the Dortmund site and approx. 30% for
expected regarding dependable delivery for KHS AG.
Worms. As a further measure, some of the old rows
For KHS AG, protecting the environment is an
of roof windows in Worms and Bad Arolsen were
important part of the company’s responsibility to
replaced with new double-paned windows.
The
society – and this does not just apply to its premises
modern, energy-saving heating systems also generate
in Germany. At all of its sites, KHS World will con-
fewer emissions.
tinue to make an all-out effort towards minimizing
As KHS AG is also concerned with improving
hazards for both people and the environment. For all
the environmentally compatible disposal of waste, a
at KHS World, one important aspect of long-term
new waste management program has been imple-
customer satisfaction will thus continue to be meet-
mented as a pilot project at the Dortmund site in col-
ing the expectations of our clients with respect to the
laboration with an external waste disposal company
environmental compatibility of our products and
as a service provider. After an initial test phase, this
processes. Adhering to the relevant legal regulations
concept shall also be applied to the other KHS plants
on environmental protection at all sites worldwide –
– providing it is both ecologically and economically
as a definition of the minimum requirement – thus
sound. A central recycling center has been set up. In
goes without saying for KHS AG. If both prudent and
the future, the external waste disposal company will
economically viable, where possible these minimum
collect the waste from this depot and ensure that it
requirements shall also be exceeded.
is segregated and either properly disposed of or recy-
All general and legal conditions are also met
cled. Waste statistics and any necessary records shall
by the KHS Beverages companies. No potential risks
be kept by the disposal company as stipulated by KHS
to the environment are apparent.
AG and the relevant statutory regulations. The waste
disposal company shall inform KHS AG as to any new
or amended regulations pertaining to waste disposal
EMPLOYEES
laws and shall implement any necessary changes
Qualified university graduates have been recruited to
together with KHS AG.
secure innovative potential and boost our sales activities.
Another major topic in the past business year
Additional qualified personnel have also been
was the implementation and implications of REACH
hired to increase capacities in the areas of final
by and for KHS AG. This EC regulation is concerned
assembly and service.
with the Registration, Evaluation, Authorization, and
In order to meet the growing service
restriction of CHemicals ("REACH") in the European
demands of our customers, on January 1, 2008, all
Union. Our staff made use of the aid and support
central, service-orientated functions were compiled in
provided by our parent company Salzgitter AG and
a new division entitled Life Cycle Solutions.
attended various informative courses on the subject.
bundling existing activities and continuing to extend
After concerning itself with REACH, KHS AG
our service activities, we will be able to cope with
ascertained that it is indeed affected by the regulation
By
these new challenges.
with regard to the procurement of necessary
On April 1, 2008, our central Human
resources. All suppliers in the corresponding product
Resources division was reorganized, with the result
groups were thus written to. The replies received
that the ensuing modern personnel management is
18
MANAGEMENT REPORT KHS WORLD
better geared towards the organizational units, thus
interdisciplinary exchange. KHS’ university recruit-
supporting collaboration on all staffing matters across
ment department was also present at various univer-
all sites.
sity trade shows.
This decision also took the results of a satis-
In November 2008, informative courses on
faction survey made of all members of staff into
the transferal of employers’ obligations were held for
account, thus meeting the demand for more informa-
executives. These events, staged together with the
tion, increased communication, and more advice.
Employers’ Liability Insurance Association, aimed to
In addition to the ongoing technical training
sensitize executive staff to their responsibilities
of service personnel, the focus of personnel develop-
regarding safety at work and company organization.
ment included language and sales training, and inter-
In order to ensure a future supply of qualified
national exchange programs with international busi-
managers and specialists, the company’s own train-
ness schools.
ing program is an important part of personnel development.
Our executive management development
At the end of the business year 2008, 230
was also further advanced with the introduction of
young staff members worldwide – 161 of which were
various processes, such as 360° feedback, objective
in Germany– were enrolled in technical and business
agreements, and HR reviews, for example.
vocational training programs.
Further activities in university recruitment
In 2007, a company agreement on trainees
should also be mentioned in this respect. September
was made that regulated the hiring of trainees during
2008 saw the first National Student Day in Dortmund,
their course of study and their employment on com-
in which 27 students took part. The event was con-
pletion of their training. The aims of this system are
ceived to enable contacts to be made and to facilitate
to create a stronger incentive to perform and a
greater sense of motivation during training, achieve
greater quality and productivity on completion of
training, to improve and recruit new talent, and to
DEVELOPMENT IN THE NUMBER OF EMPLOYEES
boost the image of KHS vocational training both
31.12.
31.12.
Change
2008
2007
in %
3,015
2,848
5.9
KHS China GLM2
875
963
- 9.1
KHS USA
363
349
4.0
KHS Brazil
356
322
10.6
working hours was furthered while taking various
KHS Mexiko
191
201
- 5.0
changes and supplements into consideration.
KHS India
127
124
2.4
In order to provide effective help to
KHS Sales companies
329
304
8.2
addicts and potential addicts in the earliest stages
5,256
5,111
2.8
of affliction, in September 2008 a company
434
(417)
4.1
5,690
(5,528)
2.9
KHS AG
KHS Group
KHS Beverages
companies
KHS World
within and outside the company.
In order for it to be able to react to fluctuations in workloads in the individual departments and
between the various plants, thus securing company
yields, the company agreement on the flexibility of
agreement on alcohol and addictive substances at
work was drawn up. The reason behind this was
to take measures that will ultimately also secure
employment.
19
In the period under review, the number of working
The social commitment
of our staff is encouraged …
days lost through illness, accident, and medical treatment or therapy was 4.13% of the number of possible workdays.
During the course of the business year 2008,
… to make the world a better place.
47 staff members celebrated their 25th, 22 their 40th
and one person their 50th anniversary of employment
with the company.
Approx. 2,419 former company employees or
On January 8, 2003, the court decided to take evidence
their beneficiaries received payments under the com-
on the matter, and in its decision of October 17, 2003,
pany’s pension plan.
it commissioned an expert witness to submit an expert
The personnel management of the KHS Bev-
opinion.
erages companies was taken over by KHS AG in 2008.
This expert opinion was completed by the
By the start of 2009, all processes and struc-
expert witness in April 2008 and was sent to the par-
tures will be completely identical.
ties by the court in May 2008. After examining the
We would like to thank all of our employees
expert opinion, KHS AG and Klöckner Mercator
for their commitment and also the employee repre-
Maschinenbau GmbH raised a number of objections
sentatives for their trusting and constructive collabo-
and questions that were filed with the court. In its
ration.
decision of November 3, 2008, the court then
announced that the expert witness was being commissioned to make additions to his expert opinion.
FURTHER INFORMATION
However, he was previously requested to notify the
With regard to the arbitration proceedings made
court of the costs involved.
pending by shareholders of KHS AG, we report as fol-
• Proceedings against Klöckner-Werke AG and KHS
lows on further developments in the business year
AG at the Dortmund District Court, for court deter-
2008:
mination of the reasonable settlement for the KHS
• Proceedings against KHS AG and Klöckner Merca-
AG shareholders who ceased to be shareholders
tor Maschinenbau GmbH at Düsseldorf District
because of integration of the company, pursuant to
Court in the matter of "reasonable compensation"
Section 320 (1) of the German Stock Corporation
(Section 304 German Stock Corporation Act) and
Act.
"reasonable settlement" (Section 305 German
In June 2008, the expert opinion commissioned in a
Stock Corporation Act) in respect of the control
decision by the District Court on July 9, 2003, was com-
and profit transfer agreement concluded by and
pleted, submitted to the court, and sent to the parties
between KHS AG and Klöckner Mercator Maschi-
for comment. KHS AG and Klöckner-Werke AG have
nenbau GmbH on September 28, 1993.
no remarks or questions in this regard; the expert opinion basically concurs with the position of KHS AG and
In October 2000, KHS AG petitioned the court to dis-
Klöckner-Werke AG. It remains to be seen whether
miss any request for settlement exceeding DM176 per
objections will be submitted by the suing shareholders.
KHS share with a nominal value of DM50, and for any
A court decision based on the expert opinion is other-
annual compensation payment exceeding DM10.15.
wise expected.
20
MANAGEMENT REPORT KHS WORLD
RISK REPORT
and high-value projects. All departments involved in
Our global operations offer business opportunities
future project development are included in the review
but also involve certain business risks.
process, starting with the quotation phase. Impor-
For this reason, an extensive risk management
tant projects are examined for technical risks by the
and reporting system has been implemented in KHS
Engineering Service department. Other specialized
World in order to ensure the appropriateness of cor-
departments perform checks regarding legal, finan-
porate risks in relation to earnings opportunities. The
cial, and earnings-related risks. Any disproportionate
system is based on the documented risk strategies of
risks that are identified lead to project reviews; mea-
Klöckner-Werke AG (the parent company listed on the
sures to minimize risks are developed.
stock exchange) and of KHS AG, and on KHS proce-
Financial risks pertaining to receivables and
dural instructions on corporate risk management
orders on hand are subjected to continuous monitor-
which are founded, in turn, on these strategies.
ing by the accounting department. In addition to
As at the balance sheet date, a risk inventory
was carried out in order to document and quantify
normal reporting, ad hoc announcements are also
used when necessary.
existing risks and to implement appropriate counter-
Default risks pertaining to foreign receivables
measures. The main risk categories relate to market
are mostly limited by documentary credits; in individ-
risks that ensue from the general economic and com-
ual cases, export credit insurance instruments are also
petitive climate, to customer and country-related
used. Hedging transactions are used to cover any
financial risks in connection with order financing, to
currency risks.
order processing risks in the case of complex and
As of the reporting date, no order-related
technologically sophisticated plants, and to contrac-
risks jeopardizing the continued existence of the com-
tual risks. The risk inventory is carried out using a risk
pany were identified.
database tool in order to ensure a uniform and standardized form throughout the Group and to ensure
that risks are subsequently monitored.
FORECAST REPORT
The results of the risk inventory are presented
The IFO World Economic Climate indicator deterio-
at an annual risk committee meeting. Material risks
rated further in the fourth quarter of 2008 and has
are identified in co-operation between the Executive
fallen to the lowest level in more than 20 years. In
Management Board and risk management depart-
its latest forecast, the International Monetary Fund
ment, and subsequently tracked on a quarterly basis
(IMF) has also cut its estimate for global GDP growth
by the risk management department.
in 2009 to 0.5%. Growth has slowed significantly,
Continuous risk monitoring is also carried out
and the economy has already entered a recession in
in the current business year by means of a reporting
a number of industrial countries. In the USA, the sit-
system that is based on detailed corporate planning
uation is still considered highly unfavorable. The IMF
and which enables continuous comparison of current
also takes a pessimistic view of conditions in Ger-
business development with the original budget.
many. The original estimate was for zero growth, but
Quality costs are also subjected to systematic record-
the IMF now expects economic output to shrink next
ing and evaluation.
year by 2.5%.
Special checks are carried out in accordance
However, the downturn in the world econ-
with special KHS procedural instructions for complex
omy is not just affecting the major economic regions
21
of North America, Western Europe, and Asia.
profitable spare part and conversion business will
Demand from newly industrializing countries, which
increase in share, and that, within the machinery
has supported the world economy until now, has also
business, the relatively profitable market for special-
slowed. It remains to be seen whether and to what
ized machines will play a greater role.
extent the various recovery programs launched to
With efficient and holistic solutions for all
combat the financial crisis and the co-operation on
types of packaging, from PET, glass and cans to kegs
economic programs adopted at the World Economic
and pouches, and with our extensive range of services
Summit will have any effect. The impacts on the real
(Life Cycle Solutions), the KHS Group is stemming
economy are difficult to anticipate at present. How-
itself against the current downturn. However, we
ever, if weakened industries can be stabilized in the
expect that the total output will decline on the whole.
months ahead, the world economy may recover grad-
We are counteracting the inefficient cost relations
ually and slightly by the end of next year.
that ensue here with a number of measures, some of
The outlook for mechanical manufacturing
which were already initiated in 2008. Since we do
and plant engineering is also poor at present. The
not anticipate any significant recovery in the first half
propensity to invest is already declining as a result of
of 2009, the result for the coming year will also be
the weak economy, tougher lending conditions, and
noticeably lower.
in some cases excessive capacities. Whereas the
The KHS Beverages companies expect global
focus in 2007 was on new investment and expanding
demand for stretch blow molders to weaken in 2009
capacities, the main purpose of current investments
because of the negative impacts of the financial cri-
is to procure replacements. Optimized utilization of
sis. Consolidation of domestic demand in particular
existing production capacities and efficient use of
is expected to continue.
resources are becoming more and more important in
this context.
Positive stimuli for incoming orders are
expected as a result of synergies with KHS AG in the
Despite financial bottlenecks, beverage pro-
line business, from sales of monoblock machines, and
ducers continue to face a growing demand – espe-
from the expansion of the service business. In the
cially in newly industrializing countries. Population
food and non-food sectors, the individual machine
growth, the attainment of higher living standards in
business is to be expanded.
newly industrializing countries, and general changes
in consumer habits are still the key drivers behind the
growth in beverage demand.
EVENTS SINCE THE END OF THE BUSINESS YEAR
However, despite the increasing demand for
Business in the month of January was significantly
beverages, mainly in the water, beer, and fruit juice
weaker in a context dominated by the persistent
sectors, on the whole 2009 will also be a difficult year
global financial crisis, and continued investment
for KHS World. With the exception of sustained
restraint on the part of customers is expected in the
demand in the emerging markets, we nevertheless
months ahead. This will be accompanied by dramatic
generally anticipate a substantial decline in the new
downward pressure on prices.
machinery business. Increasing competitive pressures
In response, at the beginning of the new busi-
and diminishing propensity to invest are the main
ness year we began to lay off temporary employees
challenges that KHS World must face. However, in
and to not renew temporary employment contracts.
terms of revenue structure, we can expect that the
A works agreement was also negotiated with the
22
MANAGEMENT REPORT KHS WORLD
Our employees in Life Cycle
Solutions service 20,000 machines
worldwide …
… and consistently meet customer requirements.
central works council concerning the introduction of
Dortmund, March 20, 2009
short time beginning March 2009. In the business
KHS AG
year 2009, cost-reducing measures and improve-
The Executive Management Board
ments to processes will be prioritized.
The CEO, Mr. Valentin Reisgen, left the company as of January 31, 2009, by mutual agreement.
Until the post has been filled, Mr. Roland Flach has
been assigned CEO responsibilities in accordance
with Section 105 (2) of the German Stock Corporation Act.
Mr. Burkhard Becker has also been
Roland Flach (Chairman)
appointed as additional member of the Executive
Management Board of Klöckner-Werke AG.
Burkhard Becker
Dr.-Ing. Johann Grabenweger
Georg Michels
Volker Till
23
24
IN ORDER TO PRESERVE
NATURAL HABITATS
...
we save energy and fresh water in our bottle washing machines
by specifically cutting down on materials
25
26
REPORT BY THE SUPERVISORY BOARD KHS WORLD
REPORT BY THE SUPERVISORY BOARD
In the last business year, the Supervisory Board of KHS
tion of the SIG Beverages Group by Salzgitter and its
AG reviewed in detail the company’s situation and
planned integration within the Group. By integrating
performed the duties incumbent on it under legisla-
PET blow molding technology, KHS AG will be able to
tion, the company’s Articles of Association and its
supply turnkey systems from a one-stop shop in the
Rules of Procedure. It advised the Executive Manage-
fast-growing market for plastic bottle technology.
ment Board and monitored business management.
The Supervisory Board approved the purchase
The Executive Management Board notified the Super-
of a plot of land in Hamburg, and consented to the
visory Board Chairman of all important pending trans-
acquisition of KHS Asbofill GmbH and KHS Moldtec
actions and decisions. The Executive Management
GmbH & Co. KG for subsequent merger with KHS AG.
Board reported regularly and comprehensively to the
On November 28, 2008, the Supervisory
Supervisory Board.
Board discussed adjustments to the standing orders
of the Executive Management Board, and adopted a
resolution in this respect.
MEETINGS OF THE SUPERVISORY BOARD
Three meetings were held to inform the Supervisory
Board of the earnings and financial situation of the
ANNUAL FINANCIAL STATEMENTS
company, of business events of material importance
PricewaterhouseCoopers AG Wirtschaftsprüfungsge-
and regarding KHS Group planning and strategy.
sellschaft, a firm of auditors in Essen, Germany,
No meetings of the Mediation Committee in
audited the annual financial statements of KHS AG as
accordance with Section 27 (3) of the German Co-
of December 31, 2008, including the bookkeeping
determination Act were held in the past business
and the management report. The audit provided no
year.
cause for objection. The auditor issued an unqualiThe Executive Management Board reported
fied audit opinion.
regularly at each meeting of the full Supervisory
The Supervisory Board reviewed the annual
Board on the business and financial situation of the
financial statements of KHS AG and the management
company. In its meeting on March 19, 2008, the
report prepared by the Executive Management Board.
Supervisory Board also dealt with the annual state-
The auditor’s report on the annual financial state-
ments for 2007, the agenda of the Annual General
ments was provided to the Supervisory Board for
Meeting and the report of the Supervisory Board. The
review. In its meeting on March 13, 2008, the Super-
Executive Management Board explained the acquisi-
visory Board approved the annual financial state-
27
ments as submitted by the Executive Management
January 30, 2009, Mr. Gemmel was elected to the
Board. The annual financial statements are thereby
Supervisory Board of KHS AG.
Mr. Valentin Reisgen left the Executive Man-
adopted. The auditor participated in this meeting.
With regard to the early detection system for
agement Board as of February 1, 2009. We wish to
risks, the auditors stated that the Executive Manage-
thank Mr. Reisgen for all the work he has done for
ment Board appropriately complied with the mea-
the company in the past years.
sures required in accordance with Article 91 (2) of the
By resolution of the Supervisory Board dated
German Stock Corporation Act, in particular those
January 26, 2009, Mr. Roland Flach was seconded to
relating to the establishment of a monitoring system,
the Executive Management Board of KHS AG for a
and that the monitoring system is suitable for the
period of twelve months, effective February 1, 2009,
early detection of developments that could jeopardize
pursuant to Section 105 (2) of the German Stock Cor-
the future of the company.
poration Act. Mr. Flach was appointed Chairman of
the Executive Management Board of KHS AG.
The Supervisory Board thanks the Executive
CHANGES ON THE SUPERVISORY BOARD AND
Management Board, the management teams in the
EXECUTIVE MANAGEMENT BOARD
various subsidiaries and holding companies, as well as
With effect from January 1, 2008, Mr. Burkhard
the entire workforce and the work councils, for the
Becker took up his position on the KHS Executive
work they performed during the reported business
Management Board for a term of five years. The
year.
Supervisory Board also approved extending the
employment contract of Dr. Johann Grabenweger
until December 31, 2013, and consented to the
appointment of Mr. Georg Michels to the Executive
Management Board of KHS AG effective July 1, 2008,
Dortmund/Frankfurt am Main, March 13, 2009
likewise for a five-year term.
The Supervisory Board
During the past business year, and with
authorization from the Executive Management
Board, Mr. Maternus Gemmel discharged his responsibilities for sales operations until December 31,
2008. In the Extraordinary General Meeting held on
Prof. Dr.-Ing. Heinz Jörg Fuhrmann (Chairman)
28
TO KEEP OUR SKIES CLEAR
...
our new shrink tunnel for the packaging of beverage containers
now produces up to 60% less CO2
29
30
FINANCIAL STATEMENTS KHS WORLD
FINANCIAL STATEMENTS FOR KHS WORLD
BALANCE SHEET ASSETS KHS WORLD
KHS
Beverages
€ thousand
Consoli-
KHS Group
companies
dation
KHS World
KHS Group
31.12.2008
31.12.2008
31.12.2008
31.12.2008
31.12.2007
Non-current assets
Intangible assets
Property, plants and equipment
Investment property
Financial assets
Other assets
Deferred tax
61,725
59,097
0
120,822
59,184
111,035
20,331
0
131,366
99,558
929
803
0
1,732
1,106
8,498
49
0
8,547
828
370
0
0
370
28
3,834
670
0
4,504
3,944
186,391
80,950
0
267,341
164,648
Inventories
129,279
29,356
0
158,635
135,932
Trade and other receivables
272,478
2,931
- 2,452
272,957
266,763
Current assets
Financial assets
Other assets
Recoverable tax on earnings
Cash and cash equivalents
2,260
22,558
0
24,818
32,734
25,518
1,394
0
26,912
16,580
848
0
0
848
8,630
17,925
3,446
0
21,371
11,668
448,308
59,685
- 2,452
505,541
472,307
634,699
140,635
- 2,452
772,882
636,955
31
BALANCE SHEET EQUITY AND LIABILITIES KHS WORLD
KHS
Beverages
€ thousand
Consoli-
KHS Group
companies
dation
KHS World
KHS Group
31.12.2008
31.12.2008
31.12.2008
31.12.2008
31.12.2007
Shareholders’ equity
Subscribed capital
28,262
15,290
0
43,552
28,262
248,766
84,460
0
333,226
258,744
277,028
99,750
0
376,778
287,006
1,207
0
0
1,207
1,520
278,235
99,750
0
377,985
288,526
Provisions
97,371
3,964
0
101,335
84,011
Financial liabilities
27,830
0
0
27,830
38,065
10
0
0
10
12
Reserves
Minority interests
Liabilities
Non-current liabilities
Other liabilities
Deferred tax
242
1,298
0
1,540
146
125,453
5,262
0
130,715
122,234
Provisions
35,267
21,188
0
56,455
30,351
Financial liabilities
55,428
815
0
56,243
28,876
103,431
8,911
- 2,452
109,890
127,778
867
692
0
1,559
5,307
36,018
4,017
0
40,035
33,883
231,011
35,623
- 2,452
264,182
226,195
634,699
140,635
- 2,452
772,882
636,955
Current liabilities
Trade payables
Tax liabilities
Other liabilities
32
FINANCIAL STATEMENTS KHS WORLD
INCOME STATEMENT KHS WORLD
KHS
KHS Group
€ thousand
Total revenues
Changes in inventories and own work capitalized
Other operating income
Beverages
Consoli-
companies
dation
KHS World
KHS Group
1.1.-
1.1.-
1.1.-
1.1.-
1.1.-
31.12.2008
31.12.2008
31.12.2008
31.12.2008
31.12.2007
911,115
88,971
- 14,202
985,884
995,545
8,223
- 996
0
7,227
6,110
44,494
5,964
- 4,200
46,258
34,572
Cost of materials
- 495,900
- 40,572
14,202
- 522,270
- 577,195
Personnel costs
- 245,236
- 23,320
0
- 268,556
- 229,005
Other operating expenses
- 193,244
- 22,950
4,200
- 211,994
- 175,077
0
105
0
105
-9
29,452
7,202
0
36,654
54,941
Depreciation
- 18,215
- 4,827
0
- 23,042
- 15,311
Impairment of financial assets
- 22,104
0
0
- 22,104
0
Earnings before interest and taxes (EBIT)
- 10,867
2,375
0
- 8,492
39,630
Income from participations
Earnings before interest, taxes,
depreciation and amortization (EBITDA)
Interest income
1,472
193
0
1,665
2,365
Interest expenditure
8,881
- 819
0
- 9,700
- 8,091
- 18,276
1,749
0
- 16,527
33,904
- 4,097
- 615
0
- 4,712
- 16,891
- 22,373
1,134
0
- 21,239
17,013
4,673
0
0
4,673
22,010
38
0
0
38
640
- 17,738
1,134
0
- 16,604
38,383
Earning before taxes (EBT)
Taxes on earnings
Earnings after tax
Income from loss compensation
Minority interests in profit/loss
Consolidated net income for the year
33
34
SINCE EVERY DROP COUNTS
...
the new Eco vacuum pump reduces pump water consumption
in our fillers by 97.5%
35
36
FURTHER INFORMATION KHS WORLD
FURTHER INFORMATION
KHS GROUP COMPANIES (FIGURES IN LOCAL CURRENCY)
Result for
Currency
Name and domicile of company
Percentage
Equity
the year
shareholding
(in thousands)
(in thousands)
270,159
- 11,619
1
KHS AG, Dortmund (parent company)
EUR
2
Holstein und Kappert GmbH, Dortmund
EUR
100.0
25
0
3
IRKAS Beteiligungs GmbH & Co. Vermietungs-KG, Munich
EUR
99.0
26
1
4
Seitz Enzinger Noll GmbH, Bad Kreuznach
EUR
100.0
27
0
5
KHS Hensen Packaging GmbH, Verden
EUR
100.0
–
–
6
KHS Andes Limitada, Bogotá (Colombia)
COP
99.9
- 887,238
- 917,238
7
KHS Argentina S.A., Buenos Aires (Argentina)
ARS
95.0
0
9
8
KHS Asia Pte. Ltd., Singapore
EUR
100.0
223
350
9
KHS Austria GmbH, Wiener Neudorf (Austria)
EUR
100.0
248
- 33
10 KHS Benelux B.V., Breda (Netherlands)
EUR
100.0
177
158
11 KHS China GLM2 Co. Ltd., Shantou (P.R. of China) 4)
CNY
70.0
20,431
- 589
12 KHS GmbH, Wolfwil (Switzerland)
CHF
100.0
1,288
507
13 KHS Indústria de Máquinas Ltda., São Paulo (Brazil)
BRL
100.0
10,960
- 6,946
14 KHS Italia S.r.l., Mailand (Italy)
EUR
99.0
43
2
32,080
1) 3)
15 KHS Japan Corporation, Yodogawaku, Osaka (Japan)
16 KHS Machine & Equipment Co. Ltd., Quinhuangdao (P.R. of China)
17 KHS Machinery Pvt. Ltd., Ahmedabad (Inda)
18 KHS Machines Nigeria Ltd., Lagos (Nigeria)
JPY
100.0
185,341
CNY
100.0
2,182
316
INR
89.0
335,427
30,183
8,808
NGN
100.0
196,519
19 KHS Makine Sanayi VE Ticaret Limited Sirketi, Istanbul (Turkey)
TRY
99.9
35
- 64
20 KHS Manufacturing (S.A.) (Pty.) Ltd, Kramerville (South Africa)
ZAR
100.0
22,680
5,841
21 KHS México S.A. de C.V., Zinacantepec (Mexico)
MXN
100.0
105,306
5,521
22 KHS Pacific Pty. Ltd., Tullamarine (Australia)
AUD
100.0
2,974
2,774
23 KHS RUS OOO, Moskau (Russian Federation)
RUB
99.0
13,759
11,775
24 KHS S.A.R.L., Torcy (France)
EUR
100.0
214
116
25 KHS s.r.o., Budweis (Czech Republic)
CZK
100.0
7,845
4,468
26 KHS Sibiu S.R.L., Sibiu (Romania)
RON
100.0
156
244
27 KHS Skandinavien ApS, Glostrup (Denmark)
DKK
100.0
1,420
1,418
28 KHS UK Ltd., Solihull (Great Britain)
GBP
100.0
574
206
29 KHS Ukraine OOO, Kiew (Ukraine)
UAH
100.0
1,088
498
30 KHS USA, Inc., Waukesha (U.S.A.)
USD
100.0
52,258
3,066
31 KHS-ZAGORA AD, Stara Zagora (Bulgaria)
BGN
50.0
731
231
32 Kisters Limited, Redditch (Great Britain)
GBP
100.0
254
0
33 Klöckner Holstein Seitz S.A., St. Cugat del Valles (Spain)
EUR
100.0
509
97
34 KHS AG Korea Co., Ltd., Seoul (South Korea) 2) 4)
KRW
100.0
587,038
63,178
35 Impuls AD, Gabrovo (Bulgaria)
BGN
15.2
376
–
3)
1) Beginning July 11, 2008 2) Annual financial statements 2007 3) Estimate, annual financial statements are not yet available. 4) The reported equity and annual result figures are
taken, with the exception of those items marked 4) (national law), from the IFRS financial statements as of December 31, 2008.
37
KHS BEVERAGES COMPANIES (FIGURES IN LOCAL CURRENCY)
Result for
Currency
Name and domicile of company
Percentage
Equity
the year
shareholding
(in thousands)
(in thousands)
1
KHS Corpoplast GmbH & Co. KG, Hamburg
EUR
100.0
67,800
431
2
KHS Moldtec GmbH & Co. KG, Essen
EUR
100.0
2,000
688
3
KHS Plasmax GmbH, Hamburg
EUR
100.0
1,526
- 3,013
4
KHS AG (Thailand) Ltd., Bangkok (Thailand)
THB
100.0
28,959
10,862
5
KHS Corpoplast (UK) Ltd., Houghton Le Spring (Great Britain)
GBP
100.0
129
62
6
KHS Corpoplast Argentinien S.A., Buenos Aires (Argentina)
ARS
100.0
449
- 229
7
KHS Corpoplast North America Inc., Hillsborough (U.S.A.)
EUR
100.0
1,927
258
8
KHS Corpoplast Trading (Shanghai) Co., Ltd., Shanghai (China)
CNY
100.0
3,740
2,211
9
KHS Management AG, Neuhausen am Rheinfall (Switzerland)
CHF
100.0
155
55
EUR
100.0
185
- 51
10 SIG Technologia para Plasticos S.A., Barcelona (Spain)
38
FURTHER INFORMATION KHS WORLD
SUPERVISORY BOARD, EXECUTIVE MANAGEMENT BOARD, AND THEIR MANDATES
SUPERVISORY BOARD
Roland Flach, Kronberg im Taunus, Chairman
(until January 31, 2009)
Chairman of the Executive Management Board
of Klöckner-Werke AG
CEO of KHS AG, pursuant to Section 105 (2) of the German
Stock Corporation Act (since February 1, 2009)
Statutory supervisory board memberships:
• ALLBODEN Allgemeine Grundstücks-AG, Vice-Chairman
• BHE Beteiligungs-AG, Chairman
• KHS AG*
• RSE Grundbesitz und Beteiligungs-AG, Chairman*
• RSE Projektmanagement AG, Chairman*
Comparable mandates:
• KHS USA, Inc. (USA), Chairman*
Prof. Dr.-Ing. Heinz Jörg Fuhrmann, Salzgitter,
Chairman (since February 1, 2009)
Acting Chairman of the Executive Board, Salzgitter AG
Statutory supervisory board memberships:
• Europipe GmbH*
• KHS AG, Chairman*
• Klöckner-Werke AG, Chairman*
• Mannesmannröhren-Werke GmbH*
• Nordcon Investment Management AG
• Norddeutsche Affinerie AG
• Öffentliche Lebensversicherung Braunschweig
• Öffentliche Sachversicherung Braunschweig
• Salzgitter Flachstahl GmbH*
• Salzgitter Mannesmann Handel GmbH, Vice-Chairman*
• Salzgitter Stahl GmbH*
• TÜV Nord AG
Comparable mandates:
• Ets. Robert et Cie S.A.S. (Frankreich), Comité de Surveillance
Joachim Kletzin, Berlin, Vice-Chairman**
Director of the IG Metall training center
Statutory supervisory board memberships:
• KHS AG, Vice-Chairman*
• Klöckner-Werke AG, Vice-Chairman*
Comparable mandates:
• BiB Bildungs- und Beschäftigungsgesellschaft mbH, Leipzig,
Chairman of the Advisory Board
Erich Bach, Frankfurt am Main**
Head of the Staff IR/DS Board at IG Metall
Statutory supervisory board memberships:
• KHS AG*
• Klöckner-Werke AG*
Karl Ehlerding, Hamburg
Managing Director of KG Erste “Hohe Brücke 1”
Verwaltungs-GmbH & Co.
Statutory supervisory board memberships:
• Deutsche Real Estate AG
• KHS AG*
• Klöckner-Werke AG*
• MATERNUS-Kliniken AG
• WCM Beteiligungs- und Grundbesitz-AG (in insolvency)
Comparable mandates:
• Deutsche Bank AG Nord, Advisory Board
Karl-Heinz Engbarth, Bad Kreuznach**
Chairman of the works council of KHS AG,
Bad Kreuznach plant
Statutory supervisory board memberships:
• KHS AG*
Maternus Gemmel, Bad Kreuznach (since February 1, 2009)
Statutory supervisory board memberships:
• KHS AG*
39
Heinz Groschke, Büchen,
Member of the Executive Management Board, Salzgitter AG
Statutory supervisory board memberships:
• Ilsenburger Grobblech GmbH*
• KHS AG*
• Klöckner-Werke AG*
• Salzgitter Mannesmann Line Pipe GmbH*
Comparable mandates:
• A.P. Steel (U.K) Ltd. (Great Britain), Chairman
• Project Metals Ltd. (Great Britain), Chairman
• Salzgitter Mannesmann International (HK) Ltd. (Hong Kong),
Board of Administration
• Salzgitter Mannesmann International (Asia) Pte. Ltd.
(Singapore), Board of Administration
• Salzgitter Mannesmann (Scandinavia) AB (Sweden),
Board of Administration
• Salzgitter Mannesmann (Italia) S.r.l. (Italy), Supervisory Board
• Salzgitter Mannesmann (España) S.A. (Spain), Board of
Administration
• Salzgitter Mannesmann International (USA) Inc. (USA),
Chairman
• Salzgitter Mannesmann International (Canada) Inc. (Canada),
Chairman
• Salzgitter Mannesmann International (México) S.A. de C.V.
(Mexico), Chairman
• Salzgitter Mannesmann Trade (Beijing) Co. Ltd. (China),
Chairman
• Salzgitter Mannesmann (UK) Ltd. (Great Britain), Chairman
Peter-Jürgen Schneider, Hanover
Member of the Executive Management Board, Salzgitter AG
Statutory supervisory board memberships:
• Ilsenburger Grobblech GmbH*
• KHS AG*
• Klöckner-Werke AG*
• Mannesmannröhren-Werke GmbH*
• MHP Mannesmann Präzisrohr GmbH*
• Peine Träger GmbH*
• Salzgitter Flachstahl GmbH
• Salzgitter Stahl GmbH*
• SZST Salzgitter Service und Technik GmbH, Chairman*
• Verkehrsbetriebe Peine-Salzgitter GmbH, Chairman*
Comparable mandates:
• HANSAPORT Hafenbetriebsgesellschaft mbH, Chairman
• Projekt Region Braunschweig GmbH
Artur Schreiber, Dortmund**
Head of Central Logistics Division, KHS AG
Statutory supervisory board memberships:
• KHS AG*
• Klöckner-Werke AG*
Peter Söpper, Dortmund**
Full-time works council member at KHS AG, Dortmund plant
Statutory supervisory board memberships:
• KHS AG*
Karl Spanke, Essen
Head of Auditing, Salzgitter AG
Statutory supervisory board memberships:
• KHS AG*
• Klöckner-Werke AG*
• RSE Grundbesitz und Beteiligungs-AG*
• Salzgitter Flachstahl GmbH*
Helmut Weber, Fröndenberg**
Chairman of the central works council of KHS AG, of the
works council of KHS AG, Dortmund plant, and of the Group
works council of Klöckner-Werke AG
Statutory supervisory board memberships:
• KHS AG*
• Klöckner-Werke AG*
• Salzgitter AG*
* Group mandates
** Workforce representative
40
FURTHER INFORMATION KHS WORLD
MANAGEMENT BOARD
Roland Flach, Kronberg im Taunus, CEO of KHS AG,
pursuant to Section 105 (2) of the German Stock Corporation
Act (since February 1, 2009)
Chairman of the Executive Management Board
of Klöckner-Werke AG
Statutory supervisory board memberships:
• ALLBODEN Allgemeine Grundstücks-AG
Vice-Chairman
• BHE Beteiligungs-AG, Chairman
• KHS AG*
• RSE Grundbesitz und Beteiligungs-AG, Chairman*
• RSE Projektmanagement AG, Chairman*
Comparable mandates:
• KHS USA, Inc. (USA), Chairman*
Georg Michels, Düsseldorf (since July 1, 2008)
Responsible for Sales
Comparable mandates:
• KHS China GLM2 Co. Ltd. (China)*
• KHS Machinery Pvt. Ltd. (India)*
Volker Till, Hofheim/Taunus
Responsible for the Technology and Engineering Division
Comparable mandates:
• KHS China GLM2 Co. Ltd. (China)*
• KHS Japan Corporation (Japan)*
• KHS Machinery Pvt. Ltd. (India)*
• KHS Pacific Pty. Ltd. (Australia)*
• Klöckner Holstein Seitz S.A. (Spain)*
Valentin Reisgen, Neuss, CEO (until January 31, 2009)
Responsible for Business Development, Management,
Legal Affairs and Patents, Life Cycle Solutions,
Quality and Process Management
Statutory supervisory board memberships:
• ALLBODEN Allgemeine Grundstücks-AG, Chairman
• BHE Beteiligungs-AG, Vice-Chairman
• RSE Grundbesitz und Beteiligungs-AG,
Vice-Chairman*
Burkhard Becker, Hattingen
Responsible for Finance and Human Resources
(Personnel Director)
Comparable mandates:
• KHS China GLM2 Co. Ltd. (China)*
• KHS AG Korea Co., Ltd. (Korea)
• KHS Machinery Pvt. Ltd. (India)*
• KHS Management AG, member of
the Board of Administration
Dr. Ing. Johann Grabenweger, Frankfurt am Main
Responsible for Production and Logistics/Procurement
Comparable mandates:
• KHS China GLM2 Co. Ltd. (China)*
• KHS Machinery Pvt. Ltd. (India)*
* Group mandates
41
PUBLISHED BY
KHS AG
Juchostrasse 20
D-44143 Dortmund
Phone +49 (0) 231 569-0
Fax
+49 (0) 231 569-1541
[email protected]
www.khs.com
PHOTOS
© Paul A. Souders/CORBIS
© Joseph Sohm; Visions of America/CORBIS
© Liu Liqun/CORBIS
© Atlantide Phototravel/Corbis
© Momatiuk - Eastcott/Corbis
© Stockbyte
Ingo Rappers
CONCEPTION AND IMPLEMENTATION
Konzeption + Design GbR, Cologne
This is a translation of the German report. Only the German version is legally binding. This report contains forward-looking statements
and forecasts based on assumptions and estimates made by the management of KHS AG. Although we assume that the expectations in these forward-looking statements are realistic, we cannot guarantee that these expectations will be fulfilled. Assumptions
may include risks and uncertainties. These may lead to actual results that differ from those forecast. Factors that can cause such
discrepancies include changes in currency controls or in the economic and business environment, fluctuations in foreign exchange
rates, insufficient acceptance of new products or services, and changes in corporate strategy.
www.khs.com