Annual Report of the Würth Group 2017
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simply Würth Group good. Annual Report 2017 The Würth Group at a glance WÜRTH GROUP 2013 2014 2015 2016 2017 Sales in millions of EUR 9,745 10,126 11,0 47 11,836 12,722 Employees no. 63,571 66,044 68,978 71,391 74,159 Pre-tax operating result * in millions of EUR 445 515 525 615 780 Return on sales in % 4.6 5.1 4.8 5.2 6.1 EBIT in millions of EUR 495 554 572 643 768 EBITDA in millions of EUR 798 831 903 988 1,195 Net income for the year in millions of EUR 309 378 434 462 531 Cash flow from operating activities in millions of EUR 599 612 630 904 584 Capital expenditures in millions of EUR 433 367 525 481 524 Equity in millions of EUR 3,399 3,683 4,083 4,470 4,779 Total assets in millions of EUR 7,978 8,142 9,210 9, 711 10,267 Rating by Standard & Poor’s A /stable A /stable A /stable A /stable A /stable The consolidated financial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRS). * Earnings before taxes, before amortization of goodwill and financial assets, before the collection of negative differences recognized in profit or loss, before the adjustment of purchase price liabilities from acquisitions through profit or loss, and before changes recognized in profit or loss of non-controlling interests disclosed as liabilities Operational units SHARE OF SALES Divisions of the Würth Line 2017 2016 2017 in milllions in millions Change in % of EUR of EUR in % Metal 15.6 1,984 1,850 + 7.2 Auto 12.8 1,631 1,549 + 5.3 Industry 11.5 1,461 1,361 + 7.3 Wood 9.9 1,256 1,178 + 6.6 Construction 6.4 819 754 + 8.6 Total 56.2 7,151 6,692 + 6.9 SALES Würth Group in millions of EUR OPERATING RESULT Würth Group in millions of EUR Return on sales as a percentage 12,722 780 11,836 12,000 11,0 47 750 9.0 10,126 9,745 615 515 525 8,000 500 445 6.1 6.0 5.2 4.6 5.1 4.8 4,000 250 3.0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 SHARE OF SALES Business units of the Allied Companies Operational units 2017 2016 2017 in millions in millions Change in % of EUR of EUR in % Electrical Wholesale 11.6 1,475 1,359 + 8.5 Electronics 6.3 806 686 + 17.5 Production 5.4 691 632 + 9.3 RECA Group 4.7 603 559 + 7.9 Trade 4.5 568 554 + 2.5 Chemicals 4.3 549 529 + 3.8 Tools 3.3 417 386 + 8.0 Screws and Standard Parts 1.9 244 217 + 12.4 Financial Services 0.9 111 108 + 2.8 Other 0.9 107 114 – 6.1 Total 43.8 5,571 5,144 + 8.3 Contents simply good. 1 simply good ... 46 Commitment 49 Experiencing art and culture 54 Sharing commitment 59 Shaping education Annual Report of the Würth Group 2 Essay Let’s build the United States of Europe for our children and grandchildren! 6 Bulletin 6 Report of the Advisory Board 8 Report of the Central Managing Board 10 The boards 10 Legal and organizational structure of the Würth Group 11 Advisory Board 12 Central Managing Board 13 Customer Advisory Board 14 Group management report 14 The company 16 Economic environment 17 Business trends 18 Sales by region 22 The operational units of the Würth Group 22 The divisions of the Würth Line 26 The business units of the Allied Companies 27 Electrical Wholesale 28 Electronics 29 Production 30 RECA Group 31 Trade 32 Chemicals 33 Tools 34 Screws and Standard Parts 35 Financial Services 36 Net assets, financial position and results of earnings 42 Research and development 46 Risk and opportunities report 52 Employees 55 Corporate governance report 56 Outlook Consolidated financial statements 60 Consolidated income statement 61 Consolidated statement of comprehensive income 62 Consolidated statement of financial position 64 Consolidated statement of cash flows 66 Consolidated statement of changes in equity 67 Consolidated value added statement 68 Notes on the consolidated financial statements Würth Group in fies Sales With over 74,000 employees, the Würth Group generated record sales of EUR 12.7 billion in the 2017 fiscal year with over 400 companies in more + 7. 5 % than 80 countries, an increase of 7.5 percent. Operating result In the 2017 fiscal year, the operating result came 26.8 % to EUR 780 million – which also sets a new record and marks a significant increase in the year-on-year comparison (2016: EUR 615 million). The return on sales came in at 6.1 percent. Employees The number of employees rose by 2,768, from 71,391 to 74,159 in 2017. There are a total of 22,620 employees in Germany, a +3.9 % figure that is up by 4.3 percent. The Würth Group has a total of 32,295 sales represenatatives. simply good ... Making people’s work easier. This is the vision that has always motivated us at Würth: with products that are simply good, with reliable service, with commitment stemming from conviction. This is the vision to which we owe our success. Today, we have operations worldwide: as a specialist for fastening and assembly materials, as a market leader. This is what motivates us in our commitment to our customers. Why? It’s simple really: We want to live and work in a world in which people are happy. This is why we are also committed to youth and art, literature and sports, music and science. In short: we are committed to quality of life. For our fellow human beings. And in very concrete terms. So what does that mean? Let us show you … 2 3 simply in the middle of it The new nerve center of Axel Springer SE is currently under construction in Berlin’s former newspaper district, a building that will house up to 3,500 employees on a historic site in the heart of our capital city. The Würth Construction Project Management team has been on-site since the excavation pit was dug. Würth’s construction site sales representative visits the site daily. Together with the supplies provided by Würth’s own building site delivery service, this ensures that stocks are replenished. 4 5 simply top-class Discipline and performance are the key to success. This not only applies to Würth, but also to the world of sports. Würth has been supporting the German Ski Association since as far back as 2002. 6 simply magical The cultural center “Kulturhaus Würth”, along with its integrated library “Bibliothek Frau Holle”, opened its doors in Künzelsau in May 2017. The reference library on the first floor features more than 7,000 books from the private collection of Carmen Würth, which are available to the public free of charge. The venue is used to host lectures, courses and small-scale artistic performances on a regular basis. 7 simply inspiring The Würth Collection, which now comprises more than 17,500 works of art, is on show to the public at four museums in the Hohenlohe region and ten art centers across Europe (picture shows the Würth Forum in Rorschach, Switzerland). 8 SWG Schraubenwerk Gaisbach GmbH: Pressed parts have to be threaded, heat-treated and galvanized in additional processing steps before they can be used by woodworkers as ASSY® screws. 9 simply connected Customers can use the Würth App to scan barcodes and order products, find their nearest branch office or analyze the noise level to find the best ear protectors – all they need is their smartphone. 10 11 simply incredible Adolf Würth set up a screw wholesale business back in 1945. After his father’s sudden death in 1954, Reinhold Würth took over at the helm of the company, which was generating annual sales of EUR 80,000. Today, the company employs a global workforce of more than 74,000 employees at more than 400 companies in over 80 countries, and generated sales of EUR 12.7 billion in 2017. 12 simply ready to go In the “land of the free”, Würth has been a sponsor of the PENSKE team in the American NASCAR Sprint Cup Series since 2012. This allows us to reinforce our brand strategy in the US, too. 13 14 simply international In 1962, Reinhold Würth set up the first company outside of Germany, in the Netherlands. In 1987, 25 years later, Würth was already represented on all five continents. The solidarity between all Würth subsidiaries is reflected in its architecture: The inviting and communicative design bathed in light transports the corporate culture across borders. The new administrative building of Würth Canada Ltd., Ltée in Guelph, Ontario 15 Würth Nederland B.V., ‘s-Hertogenbosch in the Netherlands 16 simply unbeatable The WÜRTH MASTER range of machinery offers convincing performance coupled with tremendous power and truly inspiring service solutions. It is fully compatible with the ORSY® system world, meaning that everything is always on hand in the workshop and on the construction site. This saves time and money. Würth provides every customer with the right solution for their specific application. 17 18 simply e-mobile Würth Elektronik eiSos is a technology partner of the Audi Sport Abt Schaeffler racing team in the all-electric Formula E racing series. The highly efficient components contributed to Lucas di Grassi’s win at the World Championship in the 2016 / 2017 season and to 2nd place in the team rankings.