Transparency Annual Report of Weleda A G 2 0 0 7 The financial year 2007

2007 2006 Change Weleda Group – in 1,000 CHF in 1,000 Euro in 1,000 CHF in 1,000 Euro 2007/2006 in % key figures Weleda processes over 8 tonnes of essential lavender oil each year. It primarily origi- rate 1,66 rate 1,61 nates from organic cultivation projects in Moldavia and Bulgaria. A small portion also 1 Turnover 361,248 217,619 323,324 200,822 11.7 comes from the French Provence. Weleda uses the soothing fragrance and its relaxing Operating result 13,336 8,034 9,871 6,131 35.1 effects in 60 different skin care products. Ordinary business result 7,873 4,743 4,608 2,862 70.9 In 2007, co-workers from the Weleda Group were able to participate in 15 leadership Net income before taxes 8,511 5,127 4,608 2,862 84.7 seminars at the Weleda Academy. Of particular interest was the seminar on Leadership Net profit after tax 4,059 2,445 487 302 733.5 Skills, which covered the topics of leadership tasks, styles and behaviour. Cash flow 2 21,064 12,689 15,509 9,633 35.8 Dividend 998 601 625 388 59.7 Weleda is represented on 5 continents, and over 1,700 people work for the company Fixed assets 142,398 85,782 131,411 81,622 8.4 throughout the world. Investments in property, 60 suppliers, primarily based in Europe and including producers of active ingredients, plant and equipment 21,150 12,741 30,752 19,101 -31.2 raw material suppliers, packaging manufacturers and laboratories, are audited by Shareholders’ equity 125,337 75,504 98,571 61,224 27.2 Weleda each year.They are inspected to ensure that the quality of their deliveries Pension provisions 19,559 11,783 18,249 11,335 7.2 meets Weleda’s requirements. Total assets 325,097 195,842 277,899 172,608 17.0 In 9 countries, Weleda grows medicinal plants in the company’s own Biodynamic Proportion of gardens. These are in Germany, England, France, Sweden, the Netherlands and total assets Switzerland. Medicinal plants are also grown in Brazil, Argentina and New Zealand Fixed assets 44 47 to ensure quality and availability. Shareholders’ equity 39 35 Pension provisions 6 7 There are 20 national editions of the Weleda News consumer magazine around the world. It can be found, for instance, in Spain, Russia, Japan, Brazil and the USA. The Funds, debenture bonds, largest circulation is in Germany, with 1.2 million copies. and trustee loans Funds, debenture bonds, The basic principles of leadership and teamwork for the Weleda Group are available in 7 languages. These guidelines form the basis for identifying development potential and trustee loans 59,924 36,099 58,698 36,458 2.1 and for consciously molding our co-workers development.

Employment Total staff 3 1,711 1,608 6.4

1 With CHF currency conversion rate unchanged from 2006, total turnover is CHF 353.5 million (+ 9.3 percent over prior year) 2 After income taxes 3 Calculated on a full-time basis

On cover page Arnica is a medicinal plant with traditionally-proven healing powers. The freshly delivered arnica plants are processed in the tincture production plant at Weleda Naturals GmbH. The resulting plant extract is used in Weleda medicines. You can find out more about the processing and origins of this medicinal plant on page 26. Contents Dear Readers,

We are delighted to again report on another successful year. In all countries in which 3 Letter from the President Weleda is present, interest in Weleda personal care products is on the rise – including 4 News from the Weleda countries not only our personal careproducts, but also for our medicines. Over the past year, we 10 Organs and organisation have intensively focused on the medicine category so that we can, firstly, continue to meet the legal requirements governing the safety of medicines. Secondly, we needed to 12 Visions. Experiences. Memories – document the unique qualities and formulation methods of our medicines for internatio- An interview with the Chairman of the Weleda Group Management nal use. This cannot be compared to any other types of therapy. As another important step on our path into the future, we have appointed seven new members to our management teams in the three core countries of Germany, France, and Switzerland, five of which come 16 Weleda – A portrait from our own “junior staff”. The Weleda Group Management has also expanded with 18 Weleda medicines the addition of two new members. All of these resources will give additional impetus to 22 Weleda bodycare and natural cosmetics the core companies and the Weleda Group as a whole. Last year, Dr. med. Gerhard Roeber left the Board of Directors for reasons of age. We would like to offer him our sincere thanks for the 10 years he worked with us 24 Raw material projects around the world and for the pleasant, integrative and sensitive way in which he worked. The Weleda 26 Arnica – Patron saint of muscles and bruises Annual Report is based on the way in which we organise ourselves and work together – beyond the executive committees and the Board of Directors. This reflects our corporate culture and is an expression of the values by which the company lives. We again want to 30 Environmental commitment build our business for you, our customers and friends of the company, upon this basis. 32 Social commitment With best regards

34 Business development 36 Key business figures Rolf Kerler 38 Information about the countries President of the Board of Directors, Weleda AG 40 Our subsidiaries’ addresses 41 Financial report 2007 Arlesheim, march 2008

Impressum

2//3

Rolf Kerler Dr. med. Frank Meyer, general practitioner and expert on holistic medicine, Nuremberg, Germany. News from the Nature and man “The longer I remain a doctor, the treasure chest, explored the secrets of Weleda countries more I’m in awe of nature. After mother nature; and further developed millions of years of common evolution, substances available in the form of Weleda is represented in 53 countries. Our subsidiarys’ and partners’ activities it provides us so perfectly with appro- innovative, safe and effective medici- priate medicines for the most diverse nes. Had Weleda not devoted itself to are diverse and colourful, and each of them illustrates a development process situations. It’s almost as if it knows these responsibilities, with such dedica- of its own. So what has been happening in the world of Weleda in 2007? more about human beings than we’ve tion, for over 80 years, I – as a doctor – ever found out about ourselves – and would often be left empty-handed.” ever will. Weleda has unlocked this “Space Weleda” in Brazil In December 2007, Weleda Brazil entered into a partnership with “Spa Hara”, one of Latin America’s largest centres for detoxification. Located in the exclusive Jardim Europa area of São Paulo, “Spa Hara” has specialised in lymphatic therapy and manual lymph drainage. Using a common concept to represent quality of life and wellness, Weleda created a “Space Weleda” on the spa’s premises. Inspired by “Espace Weleda” in Paris, the rooms were furnished with natural and recycled materials. Treatments using Weleda products are carried out in the new oasis of peace and tranquility.

Aesthetic show garden for medicines. “Nature-orientated company grounds” award for Weleda Switzerland The “Natur und Wirtschaft” (Nature and Economy) foundation has awarded Weleda Arlesheim a prize for its nature-orientated company grounds. Close to the new pharmaceuticals building, which was com- pleted in 2006, an expansive and lovingly-designed show garden, growing many medicinal plants, was laid out to connect the buildings with the nature around them. The jury highlighted the show gar- den’s aesthetic quality in, located in the center of Arlesheim’s industrial area. Ruedi Lustenberger, Moritz Aebersold (second from the right) received the President of the “Natur und Wirtschaft” foundation, “environment prize” worth 5,000 Swiss francs in the form said in his laudatory speech, “The corporate philoso- of a rock crystal from the foundation’s President, phy of Weleda is wonderfully expressed in the com- Dr. Jost Schumacher (far right). pany’s beautiful gardens – unmistakable and a true, multi-sensory experience!” Environment prize for Weleda Switzerland In May 2007, Weleda won the “environment prize” New plant processing in England awarded by the Swiss Environment Foundation. For At the beginning of 2007, the facility in Ilkeston, the first time, the sustainable, ecological business developed for the processing of medicinal plants, practices of Weleda Switzerland were awarded an was completed. Fresh plants from the company’s important national prize (page 31). The founda- own garden are either dried in accordance with the tion’s objective is to recognise innovative behaviour high standards of quality expected by GMP require- and pioneering activities in the field of environ- ments or they are processed to produce tinctures. ment and ecology and to bring them to the atten- 4//5 The new facility will enable the production of larger tion of the wider public. Moritz Aebersbold, mem- quantities. Over 150 medicinal plants are cultivated ber of the Swiss management, noted that this envi- and harvested in the Biodynamic, Demeter-certified ronment prize serves as an incentive for the future Derbyshire herb garden. of all co-workers. “Corporate identity and environ- mental awareness must be actively experienced and put into practice every single day. This prize, therefore, is also motivation for us to become even better in the future.” News from the Weleda countries

Since 2007, “Weleda News” is now also available in Japan.

www.weleda-sport.fr

French sports website online “Espace Weleda”, meeting place and oasis of peace and tranquillity. More and more sports enthusiasts are discovering Weleda. Weleda France supports athletes in their Belgian press conference in Paris Weleda USA: Moving pictures on the competitions and is engaged in active partnerships New: Weleda News in Japan Natural cosmetics are booming in Belgium. This can Internet (page 33). To provide professional and amateur ath- Weleda care products are successfully sold in Weleda not only be seen in the sales figures, but also in the Skin care products and non-prescription medicines letes with information about the Weleda brand and shops throughout major cities in Japan. “Weleda general public’s growing interest. In order to present can be ordered online via the web shop on Weleda its products, the new website www.weleda-sport.fr News” appears twice a year, with a circulation of the Weleda brand and share the company’s philoso- USA’s new website. You can also find detailed pro- was launched in March 2007. The products show- 30,000 copies for each issue. The magazine provides phy, Weleda Belgium held a press conference at duct information and a glossary of ingredients. The cased here – lead by Arnica Massage Oil – meet the information about product ingredients, as well as “Espace Weleda” in Paris. In the exclusive spa rooms, site provides information about Biodynamic cultiva- athletes’ needs. The most frequently visited area is the company’s philosophy and involvement in envi- close to the Champs-Elysées, the participants became tion, as well as fair trade practices in conjunction the testimonials section, in which top athletes from ronmental protection and fair trade. Particular acquainted with new products and Weleda’s quality with the international sourcing of raw materials. Of all sports report on their personal experiences with favourites among its readers are the articles covering criteria. The journalists were also able to experience further interest are the short, downloadable films Weleda. scientific topics, along withan essay that appears on Weleda’s quality first hand with a 20-minute massa- about, for instance, quality control, the Weleda cor- the first page. ge. Major press conferences for Weleda’s natural cos- porate culture and Weleda’s wild rose cultivation in 75 years of “Weleda Nachrichten” metics were also held in Spain and the USA. Turkey. in Germany – Additionally, Weleda Germany invited journalists to Since the first issue of “Weleda Nachrichten”, pub- a cosmetics workshop, which lasted several days, and lished in May 1932 in Arlesheim, Switzerland, people Weleda France organised a press trip to Weleda have been devoting their time and attention to the Naturals GmbH in Germany. customer magazine. The publication was initially intended to appear at informal intervals and provide Doctor’s association meets at a group of people, who felt an affiliation with the Weleda Switzerland interests and responsibilities of the company, with The traditional “Remedies Day”, followed by a gene- information about important issues related to ral meeting of the Association of Anthroposophi- Weleda AG. For many years, the magazine was only cally-Oriented Doctors in Switzerland (VAOAS), was available in black and white and without any held at Weleda in May 2007. The new premises images. Illustrations, photos and colourful pictures provided an ideal infrastructure for the doctors’ were later added. Today, the magazine is characteri- working groups and practical exercises. The meeting sed by large-format colour photographs and high- participants gained insight into Weleda’s new medi- quality design. The number of pages has increased cal production facilities, the complex production over the years, as has the circulation figure (now process, and also the complex documentation. 1.2 million per edition in Germany, four times a 6//7 year). Articles about plants, physical health, the “Weleda Nachrichten” over the course of time. wellbeing of the heart and soul and art and culture are the secret to its success.

www.usa.weleda.com Dr. med. Jean Chazarenc, Doctor, Member of the Management Board, and person responsible for the Medicine division at Weleda S.A. Huningue, News from the France. His professional life is accompanied by playing the piano. Weleda countries Dissonance and harmony

“Mankind and his biography, illnesses mind and spirit, with consideration for and therapy, and healing are processes his surroundings. It does not see the subject to particular laws. Aside from illness as being a ‘foreign body’ that is “Pharmacy Show” 2007 in England a purely scientific way of thinking and to be eliminated, but as an ‘overflow’ At the leading pharmaceuticals fair in England, acting, they also require an artistic of healthy processes which need to be Weleda presented its range of Arnica OTC products. approach. regulated. It constantly provides the The fair took place in Birmingham and provided an This can be compared to the com- doctor with a new way of considering opportunity to talk to pharmacists and purchasers plexity and variability of music. It is the patient and his illness. It also for pharmacy chains. At the request of the pharma- like changing dissonance into harmo- requires personal responsibility on the cists, Weleda is creating a programme of advanced ny. The anthroposophical approach part of the patient and his active par- training sessions in anthroposophical pharmaceutics, to therapy enables us to treat people ticipation in the therapy or healing which will be available in three-day sessions through- Pamela de Lorenzo individually and on all levels: body, process, such as in movement or art works as a PTA at a out the course of 2008. therapy.” pharmacy in Düsseldorf, Germany. Weleda France postpones investment A large portion of the announced investment, total- ling 11 million euro, at the Huninguesite, was post- Magazine for pharmacy employees poned in 2007. This is due to the increased, restrictive Weleda Germany is publishing a new magazine. interpretation of the reimbursement procedures by “PTA-Wissen” will appear four times a year for Phar- the French CNAM health insurance fund for homeo- maceutical Technical Assistants (PTAs) working in pathic prescriptions prescribed by a doctor. Through pharmacies. Its main focus is health topics such as intense discussions with politicians, it has been possi- allergies, skin burns, menopause and colds. In addition ble to bring about a change in the law. This allows to the magazine, the website, www.pta.weleda.de, pharmaceutical companies to produce magistral pre- provides detailed information. The magazine’s parations for pharmacies as contract manufacturers. attractiveness is enhanced by its interactive involve- Implementation of these new regulations is expected ment with its readers. PTAs can apply with Weledato in April 2008, so it will be possible to start reorgani- become a “model for a day”. If selected, the PTAs sing the production of pharmaceutical products as of will visit Weleda, be given a guided tour, and, once then. (Page 18) photos have been taken, will become the cover face for the next issue of “PTA-Wissen”. Eco stand at the BioFach Latin America In November, Weleda Brazil was present at the Initiative for natural BioFach Latin America trade show in São Paulo and cosmetics in Europe debuted an innovative booth concept. Banana leaves, In autumn 2007, the “European recycled Tetrapack and natural colorants were used Natural and Organic Cosmetics to make the stand. This new concept emphasised Interest Grouping” was established Weleda’s commitment to protecting the environment. under the name of “NaTrue”, to represent the inte- It was a great success, indicated by the large number rests of natural cosmetics manufacturers in Brussels. of people who visited the Weleda stand and congra- “NaTrue” is an initiative developed by natural cos- tulated us on our successful presence. metics companies that operate in accordance with the highly ethical and ecological principles. This founding committee serves as an international plat- form and network. In addition to Weleda, five other pioneering, natural cosmetics companies belong to the initiative. Its objective is to represent the interests of the natural cosmetics industry within the European institutions and the member states of the European Union. The initiative endor- 8//9 ses a clear, legal definition for “natural cosmetics” and corresponding criteria for a quality seal. inclu- ding use of the terms “bio” or “organic”. The long- term goal of this initiative is to safeguard the posi- tive development of the natural cosmetics market. Weleda Brazil: new booth concept In Europe alone, the total volume of natural cosme- for the BioFach Latin America. tics sold each years is estimated at one billion euros. Organs and organisation

The theme for the annual report is also reflected in the Weleda Group’s organisation: transparency. Weleda takes great care and consideration in forging a relationship between the board of directors and the management board with the shareholders and society.

Weleda Group Management At the end of May 2008, Mathieu van den Hoogenband will be stepping away from his position as Chairman of the Weleda Group Management and retiring. He has personified Weleda Group Management the corporate image of Weleda since 2000. His position will be taken over by Patrick Dr. Hans Werner Steisslinger, Dr. Marc Follmer, Moritz Aebersold, Mathieu van den Hoogenband, Sirdey, who has previously been Vice-Chairman of the Group Management (Page 12). Rudolf Frisch, Patrick Sirdey, Rainier Dierdorf, Patrick Kersting (left to right). Each of the company’s international divisions will be led by one member of the Weleda Group Management. Since 2007, the Group Management has been joined by two new Mathieu van den Hoogenband Moritz Aebersold Dr. Marc Follmer Patrick Kersting members. Chairman of the WGM New Business Fields, Deputy for Production International Controlling/ Dr. Hans Werner Steisslinger has been responsible for Research & Development for body until 31.05.08 Deputy for Marketing Management France, Finances Marketing and Sales Corporate Communications Switzerland care products since July 2007. Patrick Kersting, who was previously Head of International Management Germany Management Switzerland Controlling, has also assumed responsibility for Weleda Group Finances since July 2007. Patrick Sirdey Rainier Dierdorf Rudolf Frisch Dr. Hans Werner Steisslinger Chairman of the WGM Research and Development Production Research and Development from 01.06.08 Medicines until 31.12.08 Management Germany, Bodycare Products Marketing and Sales Management Switzerland, Switzerland Management France Germany

Weleda Board of Directors At the general meeting in 2007, after ten years working together, we bid farewell to Dr. med. Gerhard Roeber, Vice-President of the Board of Directors since 2003, for reasons of age. The new Vice-President is Dr. Henner Ehringhaus. Dr. Giancarlo Buccheri was selected as a new member of the Board of Directors. He has been working as a doctor in Milan since 1977, and prior to that, he worked at the Ita-Wegman-Klinik in Arlesheim, Switzerland. For many years, Dr. Giancarlo Buccheri was President of the “International Federation of Anthroposophical Medical Associations”.

Organisation of the Weleda Group Weleda AG is a Swiss joint stock corporation. The board of directors forms the supervi- sory committee. This is made up of independent, proficient people who are nominated at the shareholders’ meeting for selection by the board of directors. Between them, they select one of their members as President of the Board of Directors. Weleda AG is based in Arlesheim, Switzerland. The Weleda Group is comprised of 16 majority holdings and Weleda AG and is led by the Weleda Group Management, which, in 2007, totaled eight members.

Statutory Auditors Corporate Headquarters and Group Auditors Weleda AG PricewaterhouseCoopers Basel, Switzerland Dychweg 14, CH-4144 Arlesheim Telephone: +41 61 705-2121 www.weleda.ch Weleda Board of Directors 10//11 www.weleda.com Dr. Henner Ehringhaus, Dr. Michaela Glöckler, Prof. Götz W. Werner, Rolf Kerler, Dr. Giancarlo Buccheri, Johanna Lobeck, Georg Fankhauser, Marc C. Theurillat (left to right).

Subsidary in Germany Rolf Kerler Dr. med. Giancarlo Buccheri Dr. med. Michaela Glöckler Marc C. Theurillat Weleda AG President Milan, Italy Dornach, Switzerland Basel, Switzerland Möhlerstraße 3–5, D-73525 Schwäbisch Gmünd Arlesheim, Switzerland Telephone: +49 7171 919-0 www.weleda.de Dr. jur. Henner Ehringhaus Georg Fankhauser Johanna Lobeck Prof. Götz W. Werner Vice-President Basel, Switzerland Zürich, Switzerland Stuttgart, Germany Crans-près-Céligny, Switzerland Visions. Experiences. Memories.

Since 1999, Mathieu van den Hoogenband has been a member of the Weleda Group Management, and as their Chairman he has been responsible for Marketing and Sales. As of June 1, 2008, he will be giving up this role for reasons of age. Patrick Sirdey will then become the Chairman of the Weleda Group. In conversation, they both talk about the past, present and future for Weleda.

Question: For eight years, you have been responsi- ral, people are now aware that cosmetic products ble for the Weleda Group and the biggest operation can contain ingredients that are harmful to their within the company. That must have been a journey health, and this awareness has contributed to the on which a great deal has happened. How do you popularity of Weleda products. Weleda is not just look back on these years? European. Weleda has now become a global brand. Mathieu van den Hoogenband (MvdH) A company as Our customers can find us in Asia, South America, old as Weleda must continue to address its responsi- and in North America, where there is enormous bilities. For me, it has always been important to look growth potential. Weleda is no longer in a niche. at the company from a number of different perspec- In the area of natural cosmetics, Weleda has become tives. One angle was the the value chain. What an established brand, and this brings with it major makes up the core of the value chain? For me, it was challenges. the raw materials. The second angle was the percep- tion that we’re not a major industry, but a small MvdH The values which Weleda conveys through its industry, and in terms of medicines, that we’re really products are also a door-opener for society. This has a large pharmacy. And the third was the acknowl- been powerfully conveyed through our body care edgement that we could strongly associate ourselves products. Weleda’s identity is nourished, to a very with society. First, through our responsibility to large extent, by the development and production of society by trying to maintain consistent documenta- medicines, because as a company, Weleda has evol- tion and registration of our medicines, and secondly, ved from anthroposophical, medicinal incentives. For through the manner in which we maintain contact Weleda, it is also a challenge to make our medicines with our customers. popular so that they become a visible component of Weleda’s identity. Patrick Sirdey, you are both contemporaries. How have you experienced the past few years? How do you see the future of Weleda medicines Patrick Sirdey (PS) I’ve experienced strong structu- in Europe and throughout the world? ring of the company in all areas. Teamwork within PS There’s no doubt that medicines represent the the Weleda Group has become much better. primary task for Weleda. The next few years will be crucial in this field, and our relationship with anthro- Has Weleda become more visible to the customers posophical and open-minded doctors will be of great Mathieu van den Hoogenband as a European company? significance. We must go to great lengths to intensi- MvdH Weleda has undergone enormous develop- fy our relationship with the medical profession. This ment. Not in the least because the countries have can be done, for instance, by developing and provi- been given more freedom. The principle of ding training programmes where doctors are able “Assistance, not insistence” has consistently proved to say to themselves: “Here I can be a doctor; here I its worth. can answer my calling again. And, this is also where I want to learn things.” Do French customers, for example, also see Weleda If we make our range of products even more com- as a European company? prehensive than it is today, more doctors will also 12//13 PS French customers see Weleda as being a company be prescribing Weleda medicines. which has its origins in central Europe. Products which have been produced in Switzerland and MvdH Another issue is the fact that the occupation of Germany have a good reputation in France. a pharmacist, which involves substances and the crea- And what is remarkable is how there has been an tion of a composition from the substances, which the astonishing change of heart in France in the past doctor needs for individual therapy, is again being few years. The customers are no longer unconcerned appreciated. This was a decisive thought that paved about what cream they apply to their skin. In gene- the way for the impulse to develop a pharmacy in

Patrick Sirdey Germany. Here, it is possible to find solutions for PS You can only exist as a producer of medicines patients’ completely individual health problems. To if you bring products onto the market that are achieve this, we need pharmacists who are able to acknowledged by society. We simply have to meet deal with substance and form in an artistic manner. these requirements. This will mean a great deal of To date, however, it has not been possible to create a extra work and we will have to prioritise. We can’t mass movement for anthroposophical approaches to provide thousands of medicines with approvals and therapy. registrations. Due to the measures that have been taken in the past few years, and not least due to Is there any foreseeable trend that this will change? the agreements with doctors, we have put together MvdH There is a important detectable trend in so- a range of medicines which will be successful on ciety. People are beginning to ask about the sense in the market. things, the ability to appreciate things, and question the truthfulness about things. In all three areas, with MvdH Basically, we have two options in this area. our products, with our knowledge, and in the con- One option is that the doctor and the pharmacist text that we convey, we can be development part- represent the concept of a medicine which they ners for patients, doctors and pharmacists. want to have for a certain individual. It’s an indivi- dual composition. Here, quality and safety are guar- PS It’s becoming increasingly clear that we’re dea- anteed above and beyond the profession’s standards. ling with people who say: “I’m responsible for my The second option is that of social acceptance, which own health. I can’t expect everything from outside; comes about as a result of repeated positive experi- I have to take care of it myself. And I also have to ences. This involves medicines for basic needs, which consider which method of therapy, and which pro- can be used by anyone. phylaxis I’ll use in general.” I see Weleda as being a company which manages to That’s what is so special about Weleda preparations: strike a balance between individual medicines and their effect is both curative as well as preventative. medicines for basic needs. For the latter, we have In this respect, our range of products has very good to convey quality, safety and usefulness to society, opportunities for the future, always assuming that which will of course not be possible for thousands we’re capable of communicating this correctly. of medicines. However, thousands of combinations for individual MvdH The topics of “education”, “further educa- applications can be offered by means of pharmacy- tion” and “personal journey through life” – these are based production, and this is what we need to be subjects which people are talking about now. I expect encouraging. This requires the creativity of doctors people’s perception of responsibility for their own and pharmacists in interplay with the patients. bodies, which is given to them as a gift, will increase. So we’re moving away from the fundamental attitude A vision for the future. Where will Weleda be in that we should just use our bodies. By means of spiri- five years’ time? tual activity, I can keep my body alive. Within this PS In five years, we should be able to say: “The context, we have good prospects with the products, relationship between Weleda and the doctors has services, and training programmes that we offer. If we become closer.” succeed in incorporating this into the communication with our customers, we will reach out to them in a MvdH In seven to ten years, there will be several new way and create the kind of relations that people pharmacies in the world. I can see that happening need today. throughout Europe. There, the medicines are pro- duced individually, and those who shop there can Weleda will have to overcome administrative hurd- look through the window and see what is being les in getting medicines approved, and it is a chal- done. The result of this are concrete, real points of lenge to keep the range of products on offer to the contact. And that’s what it’s all about: people should required extent. Is Weleda capable of achieving this come into contact with Weleda at least once in their task? lifetime. 14//15

Mathieu van den Hoogenband and Patrick Sirdey (r.). Weleda – A portrait

Future-oriented and experienced, modern and traditionally anthroposophical – this is Weleda AG. The company began Iceland

as a pharmaceuticals laboratory in 1921. Today, Weleda is Finland Norway the world’s leading producer of anthroposophical medici- Sweden Estonia nes and holistic natural cosmetics. Latvia Russia Denmark Lithuania

Great Britain Netherlands Poland Belgium Germany Whether in Lima, Milan or Kiev, it all began very simi- Luxembourg Czech Republic larly in over 20 countries around the world. Patients Slovakia Ukraine Austria and doctors wanted medicines for anthroposophical Switzerland Hungary Slovenia France Romania health care. Eventually, a group of people with a great Italy Croatia deal of idealism came together and founded a Weleda Georgia company. A somewhat different kind of globalisation. Spain Today, more than 1,700 people around the world work Albania Armenia in branches of Weleda. Each Weleda has its own history. Portugal Greece Turkey And, each Weleda orientates itself to the customer's Canada needs and wishes within their respective cultural sphere. Through all its individuality and independence, Weleda maintains a global network of teams that work Israel together. USA Egypt This applies to both the joint acquisition of raw materi- Korea als, as well as the production, sales and marketing. A Japan large part of the body care products and medicines is China produced at the sites in Germany, France and Switzer- Pakistan land. Each of these sites is responsible for specific, Hong Kong Taiwan designated product areas within the group. United Arab Emirates The Weleda range includes self-administered medicines India for conditions such as arthritis, cold symptoms, flu-like Philippines infections, nervousness and anxiety, injuries and burns. There are also preparations that provide support during pregnancy and while breast-feeding, and that help to promote infant development. Weleda’s core competence in natural cosmetics is in baby and child care, and also body oils. Weleda demands the highest standards of quality at all stages of the production chain, beginning with the Peru quality of its raw materials. Whenever possible, the raw materials come from Biodynamic cultivation, controlled organic farming and certified wild collections. Only Brazil natural substances are used and synthetic preservatives are never allowed. Weleda products not only represent Australia environmentally sustainable raw materials, but also the South Africa Chile economical use of natural resources such as energy and Argentina water. The company gives particular importance to 16//17 developing and maintaining friendly and professional trade relations; open and honest customer relations; New Zealand Majority holdings and dedicated personnel development. Because the idea of sustainability affects all areas of activity. Minority holdings

Agents and licence holders Weleda medicines

As a producer of anthroposophical medicines, Weleda offers a wide range of remedies for medical therapy and self-medication. Despite increasingly strict legal conditions, Weleda will do its best to continuously provide a complete line of medicines for individual, anthroposophic therapy.

International production: Reorganisation of Weleda Brazil major investment projects After years of financial loss, the reorganisation in The requirements for the approval of a drug are Brazil is making good progress. The reorganisation becoming increasingly strict. State approval proce- should improve the availability of products and dures, evidence of efficacy and documentation have guarantee the annual certification of the production resulted in these increasing costs. The modernisation processes. Lost production approvals should be regai- of production plants and production specialisation at ned, and existing ones retained. Crucial to the decisi- the locations in Germany, Switzerland and France on is the fact that there is a powerful anthroposo- already began at the end of the 1990s with parts of phical medical movement in Brazil. The legal reco- solid material processing in Germany. gnition of anthroposophical medicines by the This was followed in 2004 with German sterile pro- Brazilian health authorities establishes good starting duction, Swiss low-volume production and the new ground. tincture production by Weleda Naturals GmbH. Considerable investment still has to be made in France and Germany. By the end of 2011, the plants Martina Raffaglio, Personnel Consultant, Milan, Italy, for medicine production in France will be regenera- with her daughter and her next, expecting child. ted. The production of liquid medicines in Germany will also be completely reconstructed. In total, an Balance and development additional investment volume of € 27 million is expec- ted for the maintenance of Weleda medicines. In “When my daughter was six years old, my husband addition to the investments in construction, require- and I asked an anthroposophical doctor to help ments for staff capacity in conjunction with GMP cer- us with her development to achieve the best tification (Good Manufacturing Practice) are increa- balance between her physical body and her sing all the time. For the GMP project in Germany personality. New magazines from Weleda. alone, 20 new co-workers in production, quality During her first year in kindergarten, she often assurance and quality controlling have been brought Pharmacy as an idea for the future had a high temperature. We learnt how to replace in over the past two years. The idea of a pharmacy in Germany stemmed, in temperature-reducing medication and antibiotics – part, from the request of doctors who need access to which ‘hide’ the symptoms and ‘prevent’ the New magazines for Weleda Medicine the entire line of anthroposophical medicines for illness from worsening – by using anthroposophical The planning stage of a new magazine concept for their patients’ therapy. In future, there will be one medicines. We began to understand how traditional Weleda Medicine in Germany has been concluded. pharmacy supervised by an independent pharmacist, As of April 2008, there are four magazines: “Praxis- which will produce anthroposophical medicines in allopathic medicine enable sick children to lead a forum” for doctors and non-medical practitioners, small amounts. A proportion of the source materials very lively and normal existence. Children can find with an initial run of 45,000 copies, “Hebammen- will be supplied by Weleda. This will ensure that the it in themselves to resume a completely normal forum” for midwives (run of 20,000 copies), “Pflege- quality of the entire raw material-pharmacy-doctor- rhythm in their lives... so that they get sick again. forum” for professional carers (run of 15,000 copies), patient chain can be guaranteed. In the future, it We discovered that anthroposophical medicine and “PTA-Wissen” for pharmaceutical technical assis- will be possible to quickly provide each patient with gives us the opportunity to take better care of our tants (run of 5,000 copies, page 8). Each magazine individual anthroposophical formulations and com- daughter’s health. We can recognise the onset of 18//19 will appear four times a year. The magazines will positions anywhere in the world. The opening of the an illness as an indication of balance and imbalance provide a mixture of targeted content and general “Weleda pharmacy” in Schwäbisch Gmünd is plan- in her development. And we can learn to respect topics concerning all aspects of Weleda, such as a ned for August 2008. There are also pharmacies in this.” series of articles looking at Weleda production other European countries, as well as in South processes. America, which provide doctors and patients with individually customized anthroposophical prepara- tions. Dr. Mónica Mennet-von Eiff, pharmacist, Head of Approvals, responsible qualified technical person, Weleda AG Arlesheim, Switzerland. Substance and transformation

“What is substance transformation? Pharmaceutical processes play a fun- This phenomenon how nature trans- damental role. They form the bridge forms substances and brings about between purely material substances New studies into the Weleda mistletoe preparation with a placebo in tumour illnesses. Consequently, new products from substrates, just and transformation over time. confirm its efficacy and safety the Weleda mistletoe preparation represents an like the seeds from which flowers Because the process involves both the In 2007, the results of two further major epidemiolo- effective therapy in equine sarcoid. As a result of develop, has always fascinated me. space factor and also the time factor. gical cohort studies on efficacy and safety were pre- these outstanding results, the poster presentation During my pharmacy studies, this Both aspects are deliberately altered in sented at international congresses. The study results made at the “International Congress on Comple- question became a core concern. the substance by the pharmaceutical provide impressive confirmation that undesirable mentary Medicine Research” in Munich was awar- Each pharmacy transforms substances process with regard to the person who side effects caused by chemotherapy are considera- ded a prize. in terms of producing a medicinal is ill, and bring about in a new space bly reduced by the use of supportive mistletoe thera- benefit for people. But there are two and time arrangement within him. py in patients with stages I to III colorectal carcinoma Ruling by the European Court of Justice: aspects which opened my eyes to Time and time again, the complexity and all stages of pancreatic carcinoma. The studies, no approval exceptions anthroposophical pharmacy. Firstly, of these transformations in nature and for the first time, were also able to prove that the The Dutch patients’ association “Antroposana” and the biography of a substance plays in the laboratory fills me with awe.” quality of patients' life not only improved, but that the Dutch Weleda subsidiary, amongst others, filed a a significant role, and secondly, the there are also considerable advantages to the possi- lawsuit in 2006 to bring about a special ruling – a intention with which we process bility of prolonging their lives. Furthermore, it was separate procedure – for anthroposophic medicine. substances is eminently important established that the therapy is well-tolerated and The European Court of Justice ruled in September for transformation into a remedy. completely safe. One significant finding is the reduc- 2007 that the existing EU drugs directive is compre- tion in hospitalisation times for patients who have hensive and that the European-wide standardised been treated with the mistletoe preparation. approvals procedure for medicines does not allow There was a crucial breakthrough in using the Weleda for any exceptions, which is neither sensible nor mistletoe preparation in veterinary medical studies. affordable in terms of the work required for appro- For the first time, in a randomised, controlled, dou- val and clinical research for example. ble-blind study, the treatment of equine sarcoid (per- While the affected anthroposophical medicines in sistent skin tumour disease in horses) was examined. the Netherlands are only tolerated by means of a The result was that in 78 percent of cases, the horses judicial directive, things look considerably better in in the verum group showed at least a cessation in Germany for anthroposophical doctors and their the growth of the tumour, and in 41 percent of cases patients, totalling over one million each year, as all there was an improvement or cure. In the placebo drugs classified as anthroposophical medicines are group, a cessation in the growth of the tumour was approved. Dutch patient organisations, doctors and observed in just 38 percent of cases. pharmacists in anthroposophical health care have This is the first study which has been able to confirm been advocating for years for an appropriate appro- the efficacy of the mistletoe extract in comparison vals regulation.

The medicinal plant, mistletoe.

20//21 Weleda body care and natural cosmetics

Weleda body care products account for a large part of our revenue. Prized Creamy Body Washes They are primarily produced in Germany, France and Switzerland. In 2006, the Weleda Creamy Body Washes success- fully conquered the market, with the Sea Buckthorn These countries are the most important markets for Weleda products. Creamy Body Wash leading the way. This success Very popular in Japan: Birch Cellulite Oil. But Weleda is also very successful in Japan too. continued into 2007, which can be clearly seen in the numerous merits it received. At the Natexpo organic trade fair, Weleda France Natural cosmetics in keeping with the zeitgeist New: a shower exfoliating scrub from Weleda was awarded a prize in the category of “Beauté au The worldwide sales of natural cosmetics continue Since its launch in 2005, the Weleda Birch Cellulite Naturel” for its Sea Buckthorn Creamy Body Wash. to increase. Weleda customers place their trust in Oil has been the most successful body care product The jury, consisting of ten journalists, highlighted our excellent product quality and value our open, across the Weleda Group. Following the success of the quality of the shower gel: it contains 100 percent dialogue-oriented communication in the market. the “active beauty concept” – with birch as the key biodegradable tensides which are gentle on the skin. The combination of environmental protection and plant – Weleda has also developed a body scrub. But The oil basis consists of sesame and sea buckthorn oil fair trade with aesthetic attraction and enjoyment does an exfoliating scrub fit in with Weleda? Initial of organic quality. is particularly appealing to consumers around the scepticism has disappeared, because the result can In Germany, the Sea Buckthorn Creamy Body Wash world. Although Weleda is not simply following a be seen and felt: fine wax pearls made from carnau- was crowned “Biggest Seller of the Year” in the Birch Cellulite Oil is number one in Japan trend, but is pursuing its own independent strategy. ba wax and beeswax make the body scrub especially body care product segment at the Vivaness 2007 For the second time in a row, Weleda Birch Cellulite mild and gentle. Unlike conventional scrubs, which international trade fair for natural cosmetics and Oil has been chosen by the leading fashion and life- Calendula Baby Care line welcomes a new addition are often very aggressive and contain sharp-edged wellness. With this prize, the industry experts gave style magazine “Biteki” in Japan as the “Number to the family scrub particles made from plastic or plant cores, the recognition to the most successful market launch in One Seller” for the treatment of cellulite. The high- As in previous years, the body care range has been selected wax scrub particles do not cause any micro- the preceding months. The fact that by making a circulation magazine praised not only the image and augmented by new products. In 2007, the Calen- lacerations in the skin. More importantly, the Birch purchase, the consumer decides the product’s success quality of the product, but in particular Weleda’s dula Shampoo & Body Wash for babies and small Body Scrub supports the skin’s natural regeneration gave the award special significance. comprehensive concept. children was launched with great success, granting process. On the 10th anniversary of the “Prix de Beauté”, the wish of many customers, as parents had been Weleda sources the young birch leaves from organi- Weleda was able to win a prize for the second time. Weleda moves the masses in the USA asking for a mild cleansing lotion for their childrens' cally certified wild-collection in the Czech Republic. At the end of January 2007, Switzerland’s biggest In August 2007, Weleda North America took the first skin and hair. Many users appreciate that it is well- In spite of the relatively large amounts that Weleda fashion magazine “Annabelle” awarded Weleda crucial step into the mass market with its product tolerated by the skin. The baby and child line from requires for the production of the birch line, the cer- shower lotions an “Anna” for being an outstanding launch at Walgreens, a national chain of drug stores. Weleda was developed in close collaboration with tified organic wild-collection ensures the careful and natural cosmetics product. Weleda is presented, along with seven other brands, doctors, midwives and pharmacists, and is the num- sustainable use of nature’s resources. by Walgreens as a premium brand in the new ber one recommended product line by midwives in Weleda Sea Buckthorn Creamy Body “Natural Beauty” division, and will be sold in 4,500 Wash, with natural essential oils from Germany. of the chain’s shops throughout the country. mandarin, orange and grapefruit, is particularly popular. Customers are The Weleda lifestyle magazine “we”, which first The washing lotion for babies convinced of the product’s high quality appeared in January 2007, will be available at and small children contains and Weleda philosophy. Walgreens. a calendula extract, Precious almond oil, England’s leading chain of supermarkets includes and has a discreet scent. Weleda products Taking huge strides, Weleda introduced numerous product ranges into the Waitrose supermarkets in Great Britain and Northern Ireland. Waitrose is well known for selling high-quality products, and many customers have warmly welcomed the inclusion of these natural products in the Health and Beauty segment. The philosophies of Waitrose and Weleda complement each other, and an initial sign of this is the revenues for bath and shower products, 22//23 which considerably exceeded the supermarkets’ expectations.

Besides body care, the compre- hensive active beauty concept with birch as the key plant also incorporates detoxification, nutrition and sport. Raw material projects around the world

Fair prices and long-term contracts ensure that Weleda Major success: convention for the protection of Arnica works successfully together with its raw material On June 22, 2007, the “Arnica convention” was suppliers. As a result, the supplier is given purchasing signed on the Markstein in the southern Vosges re- gion. Following over two years of tough discussions, assurances and Weleda sourcing security. The result is price it was clear that the protection of these valuable stability, constant quality, and a transfer of expertise – medicinal plants and their biotope was urgently nee- a situation which is beneficial to both parties. ded and in the best interests of all concerned. Those involved in signing the convention include represen- tatives of the political associations from the regional landscape protection park, the association of plant collectors, Weleda France and other drugs producers, as well as farmers from the region. The “Arnica con- vention” is the fruit of what has already been 12 years of collaboration between Weleda, the regional landscape protection park and the “Association Vosgienne d'Économie Montagnarde”, the associa- tion for the promotion of the mountain region of the Vosges. It is a nice example of consensus-building between economical and ecological aspects, which for so long seemed irreconcilable.

Arnica cultivation project in New Zealand In the past three years, Weleda New Zealand has supported scientific research work to examine the cultivation of Arnica montana in New Zealand. This Working with the environmental protection authorities in the Peruvian project was successfully concluded in mid-2007. The agriculture ministry, Weleda was able to have a conservation area of 5,000 acres set up at San Antonio with an exclusive collection authorisation, where the majority main sponsor was the New Zealand government of scientific investigations into Ratanhia (picture right) were carried out. agency for nutrition, “Crop and Food”, whose objec- tive is to develop new cultivated plants for New Sustainability plan for Ratanhia Zealand exports. On the slopes of the Andes in Peru, Bolivia and Ecuador grows Ratanhia, Latin: Krameria On the southern island of New Zealand, there are A sea of golden-yellow flowers: Arnica growing in the French triandra, whose roots are sold around the world as a remedy and colorant. Weleda has areas suitable for the cultivation of Arnica. The first Vosges region. been processing the dried raw material since the 1920s. The alcoholic extract from the plants were harvested between November 2006 and roots is a component in the Ratanhia oral care products from Weleda. February 2007 and tested by Weleda and “Crop and Only 30 years ago, it was still possible to cover Peruvian demand and also that of the Food”. Like European Arnica, they were of very high global market by means of wild collections without affecting its natural existence. quality. The producers are now working toward Due to today’s greatly increased demand – estimated to be 35 tonnes per year – and obtaining eco-certification for their operations in harmful methods of harvesting, some large Ratanhia sites have already disappeared. order to be able to cultivate the Arnica in commer- Although Weleda has only a relatively small annual requirement of just over one tonne cial amounts. of dried Ratanhia roots, the company has become heavily involved in a unique project. From 2003 to 2007, working together with the Peruvian environmental protection Ten years of medicinal plant research authorities, Peruvian and German scientists, the local collectors and also the GTZ (German Weleda Naturals GmbH based in Germany has pro- Technical Cooperation), a usage concept for the endangered plant species was drawn up. duced a selection of research results from the past Once the commercial culture of Ratanhia proved to be complicated and no longer econo- 10 years in an 80-page brochure entitled “Medicinal mical, studies concentrated on a sustainable and socially responsible wild collection. What Plant Research by Weleda AG”. Weleda works in made this so special was a mode of collection involving simultaneous harvesting and three main research fields. Using Lobaria, Arnica and sowing – a kind of “wild cultivation”. Furthermore, the sustainable amount of harvesting Ratanhia as examples, the method of sustainable 24//25 can be determined by means of an index. wild-collection is described in this research volume. The environmental authorities in Peru were very impressed by this simple and yet efficient The chapters on selected cultivation strategies show practice of collecting, and now want to make this practice obligatory for all companies results for the strengthening of medicinal plants for who want to export the plant. long-term health and the optimization of substrates. The brochure also presents methods and reasons for the cultivation of select, previously wild-growing medicinal plants, and also nine successfully cultivated types of plant. Organically cultivated Arnica fields on New Zealand’s unpolluted soil. Arnica – Patron saint of muscles and bruises

It is of wild, original beauty, and it bears a name which already reveals its favourite location, the mountains: Arnica montana. As a component in body care products and medicines, you can also find it in football stadiums, along racetracks, in sports halls and massage practices. How does it get there?

Symbolic of tradition and progress Providing healing powers Arnica is often used in traditional European medici- Weleda uses arnica in products made to help the ne. In his later years, Goethe drank arnica tea. Vivid human organism bring metabolic and formative pro- alternative European names such as “Angel flower“, cesses back into order after becoming out of balance “Wolfs' Killer“ and “Energy Plant“ indicate Arnica's through sprains, bruising, pulled muscles and dama- sensitive, healing powers. And yet there is some- ging injuries. For this, when they are in full bloom, thing genuine about it. When supported with arni- the entire plant (referred to in pharmaceutical par- ca products, the human body can better cope with lance as “planta tota”) is harvested and processed by the great demands of sports and physical activities. hand: it is cut, pressed and put in a solution of water Drying facility, in Romania. Arnica montana. Especially at a time when we are striving to go and alcohol. After approximately three weeks, the faster, higher and further, the traditional and pro- plants are then separated from the liquid. This produ- ven healing effects of arnica are more important ces the so-called mother tincture, which makes arnica than ever. therapeutically beneficial in medicines. With its roots, Before a training session or competition, a massage rhizome, stem, leaves and the blossom, there is a wide with Arnica Massage Oil warms up the muscles and range of effective ingredients within the plant. prepares them for high-energy performance. Everything that has developed above and below Relaxation or regeneration phases are better when ground during the vegetation period is then incorpo- the muscles are gently relaxed using Arnica Massage rated into the resulting medicinal preparations. Oil. And what if you do suffer from bruising, muscle The arnica’s flower heads are also picked and dried tears or other blunt injuries? Arnica Lotion aids the from the pastures of the Apuseni Mountains in healing process of light sports injuries and reduces Romania, for example. pain and inflammation. Approximately 300 kilograms of dried arnica flowers, which equates to 1,500 kilograms of fresh plants, are Flower power harvested here. The flowers undergo a gentle four- From where does this radiant yellow flower gets its day drying process at a temperature of approximately strength? Over 150 ingredients have been identified 104 degrees Farenheit, and can then be packaged and in the blossoms alone. Flavonoids, carotinoids, essen- prepared for transportation. tial oils, bittering and tanning agents, sugar substan- Once they arrive at Weleda, they spend five hours ces, and more, are found in all parts of the plant. in a warm bath of fine organic sunflower oil at 149 Production of When one considers the plant’s structure and its spe- degrees Farenheit. The mixture slowly cools down the plant extract. cial subtle properties, the fine silica content stands overnight, so that the flowers have sufficient time to out. The human organism needs silica in order to release their full potency into the oil. The following regulate the formative, creative processes which morning, the plant’s components are gently squeezed define its inner and outer boundaries. If these struc- out and the oil is then carefully filtered to remove any tures are destroyed by a blunt injury, the natural remaining sediment. The resulting oil extract is used – powers of self-healing are stimulated by, amongst along with organic olive oil to create the warming other things, the silica content in arnica so that the Arnica Massage Oil formulation. The composition is “damage” can be repaired. balanced with a mixture of essential oils, which give this caring products its fine, dry fragrance. Only healthy arnica plants grown and harvested 26//27 under appropriate conditions can develop their healing properties in body care products and medicines. This is why Weleda pays particular attention to the origin of its arnica plants.

Processing the fresh plants. Endangered natural treasure sting areas and their plant stocks have been examined Due to increasing tourist and agricultural use in more closely. The scientific documentation provides a the past decade, the wild cultivation and continued basis for a long-term and sustainable method of col- existence of the medicinal plant was seriously lection which will guarantee the long-term supplies of endangered. The arnica’s habitat in Europe has arnica. Furthermore, farmers and collectors have been been decimated particularly due to the abandon- further trained and qualified. In the future, the wild ment of pastures, and the forestation and fertilisa- plants’ natural surroundings must be nurtured with tion of pastures and meadows. Commercial use of special care to enhance their proliferation. This is pre- the medicinal plant is subject to severe limitations. cisely the core of the “Protection through nurturing” Marathon runners at the “La Parisienne”. To achieve the overall requirement of 18 tonnes of concept. As a partner to the local farmers, Weleda arnica (fresh plants) per year, Weleda acquires the uses the entire amount of valuable medicinal plants Marie Marchand-Arvier. medicinal plant from a variety of sources which are that have been collected out of the project so that sustainably farmed. One of these is the wild-collec- their special properties may be used in the Arnica tion in the French Vosges region, which is promo- Massage Oil. ted by a species protection project. Now, the supply of arnica in the region of this project has multi- Professionals rely on arnica plied, and thanks to the controlled wild-collection, The word is spreading about the arnica’s healing is no longer in danger. Instead it is being reinfor- powers. Professional and amateur sports enthusiasts ced. (Page 25) alike know all about the benefits of arnica products when warming up, in competition and during the Protection through nurturing body’s regeneration phase. For the French skier Marie In the Apuseni Mountains, part of the Romanian Marchand-Arvier, the massage oil is an important part Carpathian Mountains, a relatively new program has of her regeneration programme. In the 2006/2007 been established, “Protection through nurturing”, season, she celebrated her first podium finish at the and promoted by Weleda. Romania is one of the women’s downhill in Cortina d’Ampezzo in January most important sources of wild-collection medicinal 2007. plants in Europe. To protect the arnica’s habitat, in At “La Parisienne”, a women’s race through the collaboration with the WWF (World Wildlife Fund), French metropolis, 70 sportswomen from France, Italy, Weleda is promoting a species protection project for Germany and Switzerland took part in the internatio- the controlled wild-collection of arnica flowers. nal Weleda team in September 2007. The runners Paulien van Deutekom, In the spring of 2006, the drying facility was set up, were supported with Arnica Massage Oil treatments World Champion in combined speed-skating events. for which Weleda provided financial assistance. The in the Weleda massage area, area. Out of 127 teams, building, which looks like a small wooden church, they took 15th place. (Page 33) Georgina and forms the centre of the project because it guaran- The massage therapists for the French biathlon and Caroline Evers-Swindell. tees perfect drying conditions for the harvested cycling team value the effect of Arnica Massage Oil, crops, and therefore the best possible quality of col- as do the physical therapists of one of Germany’s top, lected arnica flowers. The way it works is simple: two first division soccer clubs and the TVM speed-skating wood-burning ovens are heated using wood collected team from Holland. For the New Zealand twins from the neighbouring Forest. Warm air is then Georgina and Caroline Evers-Swindell, world champi- blown into the drying room. With the help of this ons and Olympic champions in the 2004 pairs rowing new facility, the amount of dried plants should event, Arnica Ointment is part of their training equip- increase from 300 to 1,000 kilograms. ment. Volleyball teams, cyclists, handball teams, and Arnica flowers have been collected in this region for numerous amateur sports enthusiasts always have over 20 years. In the past few years, the wild harve- arnica products in their sports bags.

28//29 Weleda environmental declarations from Switzerland, Germany and France (left to right). Environmental commitment

Weleda’s guiding principle "In harmony with nature and the 1997 to 2007: Ten years of environmental human being" has existed since the company was founded management system The environmental management system celebrated in 1921. This holistic approach applies to all areas of activity its 10-year anniversary in Germany – clearly demon- within the company. By making their purchase decision, strating many ecological and economical successes. It was possible, for instance, to reduce water con- Weleda customers expect to be contributing to a responsible sumption by one-half, therefore reducing costs as system of production. well. Since 1997, Weleda Germany has been certified in accordance with EMAS, the European environ- mental guidelines of the “Eco-Management and Zero-emissions Weleda project Audit Scheme” and the ISO 14001 international One of Weleda’s most amibitious, mid-term goals is to achieve zero-emissions production. system of standardisation. All environmental data, For Weleda, the development of a long-term energy strategy systematically targeted at events, successes and objectives are documented in energy efficiency and regenerative sources of energy in particular, has high priority. the 2007 environmental declaration. In 2007, the German Eco-Institute in Freiburg was hired to carry out a feasibility study Weleda Switzerland was successfully certified in in order to establish the conditions under which the three Weleda production sites can accordance with ISO 14001 and EMAS for the third achieve zero-emissions production. This incorporated the entire production process, from time. The 2006 environmental declaration shows the the acquisition of raw materials to the transportation of products to retailers. Business work being carried out by the Swiss company, such trips and work-commuting were also incorporated into the study. Initial findings show as the ecological challenges posed by the new that there are four major areas of greenhouse gas emissions: energy consumption, "Widen" building in 2006. Weleda France published packaging, transport and raw materials. Within these areas, in particular, the energy an environmental declaration for the first time in situation must be improved. March 2008.

Weleda at the 9th UN environmental protection conference Swiss Environment Foundation honours Weleda In May 2008, Weleda took part in the 9th member states conference for the agreement Weleda Switzerland has been awarded the 2007 on biodiversity in Germany. The company demonstrated how Weleda supports biodiver- environment prize by the Swiss Environment Foun- sity through raw materials projects and sustainable production methods. dation (page 4). In his laudatory speech, the Member The objectives of the UN Convention on Biological Diversity can only be achieved with of the National Council, Dr. Rudolf Rechsteiner from the support of industry. Companies profit from the diversity of intact eco-systems, the Basel, commended the fact that environmental pro- diversity of species, genetic biodiversity in extracting raw materials and in the production, tection is an integral part of Weleda’s corporate sale and marketing of products. At the same time, companies have a major influence on structure: “For almost a century, Weleda has been biodiversity. Weleda is seen as being a pioneering company in terms of environmental ahead of its times”. Referencing the economic suc- and species protection and is a partner to the “Business cess of the Weleda Group, he emphasised that “with and Biodiversity Initiative”. The Weleda Group committed creativity and expert knowledge, it is possible to itself to implementing the convention on biological make the connection between man and nature and diversity, and will firmly instill the objectives of bio- economy and ecology in a very visionary way.” This diversity within the company’s own objectives. was achieved in a particularly impressive manner with the new administration and production buil- Weleda Netherlands making values more visible ding in Arlesheim, which Weleda moved into More and more cosmetics manufacturers are bringing natural cosmetics products into the in 2006. market, joining a major trend. To clearly communicate what Weleda epresents and what makes the company different from its competitors, the Weleda companies in Belgium and the Netherlands have formulated seven values which will be strongly communicated in future: natural, healthy, safe, honest, human, environmentally-friendly and committed to society. As in the core countries, Weleda Netherlands employed a Sustainability Coordinator in 2007. The company is now using FSC-certified paper. A change to zero-emissions ink is also 30//31 firmly planned. Furthermore, new guidelines for travelling to and from work were devised and sustainability targets defined. The most ambitious goal is to produce all products with zero-emissions beginning in 2009. Raw material projects repre- sented by Weleda at the UN Environmental Protection Conference: wild-collection of Ratanhia in Peru (top), rose harvesting high above Burdur Lake in Turkey (left). Social commitment

The three pillars of sustainability – environmental protection, economy, and social aspects – are treated equally at Weleda. Whatever applies internally is also of significance externally. The company is actively involved in social and environmental issues.

Weleda culture of leadership A birch tree for each co-workers’ new child In addition to methodological competence, success- For 25 children who came into the world in 2006 and ful general management requires the ability to whose mother or father works at Weleda, a young quickly develop the right products. To train these birch tree was planted in the grounds of Weleda skills, a group of manager, as defined by the group Naturals GmbH in April 2007. This initiative is an management, make up the "Weleda General expression of trust, hope, growth, for togetherness, Management Programme". Through this specialised and our future: the children. training, the Weleda Group is investing in the com- pany’s future. With the theme of identity, the co-workers at 11,000 runners met on September 16, 2007 in Paris for the 11th Weleda Austria participated in a company meeting, Support for “La Parisienne” women’s race, including 70 Weleda co-workers accompanied by the artist and art therapist, Susanne Sponsorships from France, Italy, Germany and Switzerland. Kos. Using perception exercises focusing on all cultural affairs aspects of water, the participants closely examined “Sound paths” art installation Running competitions in Switzerland Environmentally-friendly festival with Weleda the question on “What is Weleda Austria?” The Markstein in the southern Vosges region is the Running is healthy and fun. Adopting this as their In 2007, Weleda England entered into partnership land of Arnica. Its raw climate is reminiscent of motto, Weleda Switzerland supported several with the world’s largest music festival, the Ireland. These are the surroundings which artist running competitions within the country in the “Glastonbury Festival of Performing Arts”. Pierre Redon chose for his unusual sound installa- summer of 2007. The company served as a sponsor To reduce the environmental impact of the festival, tion, which was supported by Weleda France. The with massage tents and Arnica Massage Oil, offer- Weleda provided shower and bath products, as well landscape, through which the visitor is led using a ing massages to ensure the athletes' muscles were as first aid kits. map imaginatively designed by Redon, is part of the relaxed for maximum performance. A particularly work of art. With an MP3 player, the walker hears special event, sponsored by Weleda, was the Swiss Weleda oil at the New Zealand fashion week stories about the people who work there: farmers women's race held in Bern with over 13,000 partici- Weleda sponsored "New Zealand Fashion Week who collect the wild plants, breed cattle or make pants. 2007" with contributions of Birch Cellulite Oil. The cheese. They talk about the land that they love, its Weleda also sponsored several running competitions show took place in September in Auckland. The unique flora, and their hopes and fears. And about in Germany. The legendary Berlin marathon, one of seventh New Zealand Fashion Week was star- Arnica. Because it is a precious commodity for the world's five largest marathons, was attended by studded, including long-standing icons such as, everyone, which they want to protect. 40,000 athletes from over 100 countries, along with Hailwood, Karen Walker and Trelise Cooper, along 60 live bands and one million spectators to celebrate with rising talents such as Chelsea Thorpe, Elusiv, Together, it was possible to create a small flowing stream. the event. Salasai and Love Lies Bleeding. A symbol of collaborative, nurturing and supportive work.

Integration of deaf-mute co-workers at Sports sponsoring concept in France Weleda France “La Parisienne” is one of four major sporting compe- Weleda France is employing two deaf-mute co-wor- titions financially supported by Weleda France. The kers – one working in production and one as a fork- company also supports 150 other sports events each lift truck driver. Colleagues who have mastered sign year. Furthermore, partnerships have been establis- language are already translating the content of staff hed with 50 professional sportsmen and women on meetings or important department meetings for its books, who give interviews for the new Weleda them. Through training sessions, the aim is to further sports website www.weleda-sport.fr (page 7) and 32//33 improve everyday work situations and communica– Sound improvisations by the artist Pierre Redon inter- provide advice at the Weleda stand at sporting tion. The first programme of further training began mingle with images of the landscape. An audio sample events. in 2007. is available at www.pierreredon.com 40 physical therapists gave support to the runners at the Weleda massage area with Arnica Massage Oil and Lavender Relaxation Body Oil. Business development of the majority holdings

Overview: significant changes in the shareholdings The success story of the shower lotions continued in Germany South America Weleda AG Arlesheim, Switzerland, with a subsidiary 2007 and, as in the previous year, exceeded expecta- In what continues to be the biggest market for The overall growth in South America came to 10 in Schwäbisch Gmünd, Germany, and 16 majority tions (page 23). The intensified strategic market Weleda in Germany, good growth has been achieved percent compared to the previous year. The two holdings achieved a group result after tax of 4.1 mil- cultivation for the range of medicines also led to an in body care and medicines, in spite of a generally smaller companies in Argentina and Chile were able lion Swiss francs (prior year: 0.5 million Swiss francs). above-average development in turnover compared reversed trend in market developments. The result to achieve double-digit growth rates in their local The operating result rose by 35 percent to 13.3 milli- to the previous year. Approximately one third of the of Weleda Germany was positive in 2007, although it markets, which led to smaller earnings contributions. on Swiss francs. The group turnover rose by 11.7 per- external sales is achieved with this part of the range. was also impacted by exceptional influences at the The reorganisation of Weleda Brazil, which was cent from 323.3 to 361.2 million Swiss francs. location. Structural changes due to the international started in 2006, showed success in the 2007 financial Business development in the individual regions, or in France significance of the location for group tasks burden year (page 18). It was possible to reduce the loss by the individual Weleda companies, varied. In terms of In the French market, it was not possible to continue the location’s business result. Particular reasons for two thirds. turnover, all companies were able to achieve increa- the extremely good growth from the previous year, this are effects in the production mix and also con- In May 2007, two new managing directors were ses over the previous year. The profit contributions, since the market conditions for natural cosmetics tinuing expenditure on projects to safeguard the hired, who have taken on the job of interim however, differed. Over the course of the year, no deteriorated slightly in the first half-year. Reasons future of medicines (page 18). management. As a result of this reinforcement, the major changes were made to the shareholdings. for this were new competitors and the resulting problem areas have been brought under better overfilled sales channels. Regarding medicines, a Netherlands/Belgium control, although the business development must be Weleda Naturals GmbH change in the law meant significant consequences Also in the Netherlands/Belgium market it was closely observed over the course of 2008. A strategy Weleda Naturals GmbH, central supplier to the for medicines. Thanks to intensive discussions with possible to achieve good growth again in the 2007 process has been implemented for South America for group of companies for base materials, began the responsible politicians, however, it was possible financial year in spite of a weakness at the begin- 2008 to define the further courses of action in the operations for the production at Schwäbisch Gmünd- to successfully avert this (page 8). So it was expected ning of the year. region. Wetzgau, Germany, in March 2007 and already that the planned investments in a new medicines The companies in the Czech Republic, Italy and Spain supplied base materials to the associated companies. construction could therefore be carried out as plan- in particular reported very good business develop- Development of the Weleda companies in The preceding financial year was characterised by ned. The trading results were, however, satisfactory. ment in Europe. New Zealand/Australia and Asia the start of operational business processes and The “Espace Weleda” sales premises opened in 2006 In 2008, it is expected that a double-digit increase in In the New Zealand/Australia region, no significant building up the stock. The response to the affiliated in Paris managed to establish itself with the consu- turnover will be achieved in almost all markets. growth could be achieved in 2007 due to the experience centre including what was on offer mers and continues to receive positive feedback. continuing adverse economic conditions. The there was very positive. Development of the Weleda companies in North planned reorientation and change in market culti- Switzerland America and South America vation in this region should be implemented in the Development of the Weleda companies in Europe In the Swiss market, in which Weleda is achieving the The entire North America and South America region 2008 financial year. In the Europe region, an increase in turnover (ad- greatest market penetration, further growth could be achieved a growth in external sales of approximately Expansion of relations with Asian trade partners justed according to the exchange rate) of 8 percent achieved in the product ranges in spite of a tight mar- 38 percent in 2007. This region’s share of the group’s continues to be promoted. In order to continue to was achieved. The European share of the Weleda ket environment. The location’s increased focus on turnover rose slightly to just over 6 percent. cultivate the biggest market of Japan successfully Group’s external sales was around 94 percent. group performances led to structural changes. Due to and sustainably, a new phase of working together Despite difficult market and competition conditions, the development of the exchange rate of the Swiss North America is to be introduced in 2008. all European Weleda companies were able to achie- franc against the euro, exchange losses burden the The primary growth market in 2007 was Weleda ve good growth in terms of turnover. An upturn in location’s business result. North America, which profited from the favourable the business development was especially noticeable market conditions and the heavy demand for natural in the second half-year. The volume markets of products. The successful expansion in distribution Germany, France, Switzerland and the Netherlands/ with the introduction of the bodycare range to a Belgium were able to continue the previous year’s very large chain of stores in the USA led to a power- successes in the market and achieve growth. ful surge in turnover (page 23). The additional ear- With an above-average growth in turnover, body nings are used for market cultivation. The develop- care continues to be one of the primary growth ment of the exchange rate of the US dollar against drivers in the Europe region. The revised Calendula the euro impacted the positive results development. Baby and Child Care range was also able to grow A further expansion in these sales channels is 34//35 further thanks to the new product Washing Lotion & planned for 2008. Shampoo (page 22) in the year following its launch. Key business figures 1998 to 2007

Values in CHF thousand Values in CHF thousand

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Balance Balance AL AL AL AL AL AL AL AL AL AL

FA SE FA SE FA SE FA SE FA SE FA SE FA SE FA SE FA SE FA SE 66,729 72,724 72,326 77.829 77,929 79,981 79,823 82,468 75,113 84,115 76,576 90,391 87,577 93,195 109,829 97,877 131,411 98,571 142,398 125,337

CA OC CA OC CA OC CA OC CA OC CA OC CA OC CA OC CA OC CA OC 72,160 66,165 78,095 72.592 82,142 80,090 95,154 92,509 92,210 83,208 101,468 87,653 109,804 104,186 126,613 138,565 146,488 179,328 182,699 199,760

Total 138,889 Total 150,421 Total 160,071 Total 174,977 Total 167,323 Total 178,044 Total 197,381 Total 236,442 Total 277,899 Total 325,097

Cash flow Cash flow 21,064 17,079 15,805 16,528 15,509 14,133 13,885 12,509 11,820 12,479

Investments Investments 31,070 30,752

20,261 21,150 19,154 15,812 13,879 11,003 8,567 6,950

External sales External sales 361,248 323,324 283,768 233,190 249,319 204,808 217,297 169,940 179,716 185,622

Operating result Operating result (EBIT) (EBIT) 13,336 12,070 36//37 11,196 9,918 9,871 9,186 9,244 9,110 9,710

6,419

FA: Fixed assets CA: Current assets SE: Shareholders’ equity OC: Outside capital A: Assets L: Liabilities FA: Fixed assets CA: Current assets SE: Shareholders’ equity OC: Outside capital A: Assets L: Liabilities Information about the countries

2007: Exchange rates as of 31.12.2007 Co-workers Co-workers Share Weleda AG Turnover in 2007 Turnover in 2006 2006: Exchange rates as of 31.12.2006 2007 2006 2007 2006 in CHF 1,000 in Euro 1,000 in Euro 1,000 in Euro 1,000

Weleda AG Arlesheim 169 152 50,122 30,194 47,974 29,797 Switzerland

Weleda AG Schwäbisch Gmünd 680 630 205,862 124,013 181,326 112,625 Germany

Weleda S.A. 297 301 81.9 % 81.9 % 78,948 47,559 74,035 45,985 Huningue, France

Weleda N.V. 90 84 100.0 % 100.0 % 23,465 14,135 21,097 13,104 Zoetermeer, Netherlands

Weleda (UK) Ltd. 82 80 93.9 % 93.9 % 11,328 6,824 11,425 7,096 Ilkeston, Great Britain

Weleda Italia S.r.l. 27 23 100.0 % 100.0 % 12,945 7,798 10,678 6,632 Milan, Italy

Weleda Ges.mbH & Co. KG 28 27 100.0 % 100.0 % 9,158 5,517 8,418 5,228 Vienna, Austria

Weleda Holding AB 30 27 98.0 % 95.5 % 9,330 5,620 8,674 5,388 Järna, Sweden

Weleda S.A. 35 28 100.0 % 100.0 % 5,444 3,280 4,594 2,853 Madrid, Spain

Weleda spol. s.r.o. 18 16 99.3 % 99.3 % 2,132 1,284 1,465 910 Prague, Czech Republic

Weleda Naturals GmbH 45 40 100.0 % 100.0 % 7,018 4,228 -- Schwäbisch Gmünd, Germany

Weleda Inc. (North America) 25 21 100.0 % 100.0 % 11,635 7,009 6,840 4,248 Palisades NY, USA

Weleda S.A. Argentina 41 39 100.0 % 99.9 % 1,873 1,128 1,706 1,060 Buenos Aires, Argentina

Weleda do Brasil 121 119 100.0 % 100.0 % 7,864 4,737 6,720 4,174 São Paulo, Brazil

Weleda S.A. 23 22 99.6 % 99.6 % 1,305 786 1,038 645 Santiago de Chile, Chile

38//39 Our subsidiaries’ addresses Transparency Annual financial report Weleda AG 2007

Argentina Weleda S.A. Argentina New Zealand Weleda New Zealand Ltd Ramallo 2566, C.P. 1429, Buenos Aires, Argentina Weleda (Australasia) Ltd Tel +54 411 4702-1166, [email protected] 302 Te Mata Road, PO Box 8132, 4157 Havelock North, New Zealand Australia Weleda Australia Pty Ltd Tel +64 6 872 8700, [email protected] Unit 14/13 Avalon Parade, Avalon 2107, NSW Australia Netherlands Weleda Nederland NV Tel + 61 2 9918 0911, [email protected] Platinastraat 161, 2700 AS Zoetermeer, Nederland Tel +31 79 363 13-13, [email protected] Belgium Weleda Belgium N.V. Ambachtenlaan 8, 3001 Leuven, Belgium Austria Weleda Ges.m.b.H & Co. KG Tel +32 16 40 66 24, [email protected] Hosnedlgasse 27, 1220 Wien, Österreich Tel +43 1 256 60 60, [email protected] Brazil Weleda do Brasil Rua Brigadeiro Henrique Fontanelle 33 Peru Weleda del Perú S.A. CEP 0512500 Parque São Domingos, São Paulo, Brasil Francisco de Zela 2672, Lima 14, Perú Tel +55 11 3641-4122, [email protected] Tel +51 1 222-2761, [email protected]

Chile Weleda Chile Ltda. Sweden Weleda AB General Salvo 107 Providencia, Santiago de Chile, Skillebyholm, 153 91 Järna, Sweden Chile Tel +46 8 551 518 00, [email protected] Tel +56 2 236-3795, [email protected] Switzerland Gemany Weleda AG Weleda AG Arlesheim Möhlerstraße 3–5, 73525 Schwäbisch Gmünd, Weleda Trademark Deutschland HeartBalance AG Tel +49 7171 919-0, [email protected] Dychweg 14, 4144 Arlesheim, Schweiz Weleda Naturals GmbH Tel +41 61 705-2121, [email protected] Am Pflanzgarten 1, 73527 Schwäbisch Gmünd, Birseck-Apotheke AG Arlesheim Deutschland Eremitagestraße 9, 4144 Arlesheim, Schweiz Tel +49 7171 87488-0, [email protected] Tel +41 61 7011700, [email protected]

Finland Weleda AB Finland Slovakia Weleda Slovakia (Filiale Weleda (Filiale Weleda Schweden) Tschechische Republik), Kronobergsgatan 9, 00160 Helsinki, Finland P.O. Box 213, Hviezdoslavovo nám c. 16, Tel. +358 9 4780 3610, [email protected] 811 02 Bratislava, Slovakia Tel +421 2 54433907, [email protected] France Weleda S.A. 9, rue Eugène Jung, 68330 Huningue, France Spain Weleda S.A. Tel +33 3 89 69 6800, www.weleda.fr C/Manuel Tovar, 3, 28034 Madrid, España Tel +34 91 358 0358, [email protected] Great Britain Weleda U.K., Ltd. Heanor Road, Ilkeston, Czech Republic Weleda spol s.r.o. Derbyshire, DE7 8DR, United Kingdom Lidická 28, 150 00 Praha 5, Czechoslovakia Tel +44 115 944 8222, [email protected] Tel +420 257 315 888, [email protected]

Italy Weleda Italia S.r.l. USA Weleda USA, 1 Closter Road, Via del Ticino 6, 20153 Milano, Italia P.O. Box 675, Palisades, NY 10964, USA Tel +39 02 4877051, [email protected] Tel +1 800 241 1030, [email protected]

Japan Weleda Japan Co., Ltd. (licensee) 3-2-26 Nishi-Shinjuku Shinjuku-ku Tokyo, Japan Tel +81 3 353681615, [email protected] Balance Sheet of Statement of income Weleda AG Arlesheim Weleda AG Arlesheim as of 31 December 2007 for the time period of 1 January to 31 December 2007

Assets

all figures in 1,000 CHF Note 31 Dec 2007 31 Dec 2006 all figures in 1,000 CHF Note 2007 2006

Fixed assets Sales 239,508 212,893 Intangible assets 1 8,025 6,716 - Decrease/ + Increase in finished goods 4,537 7,993 Property, plant and equipment 1 67,689 64,350 Total sales 244,045 220,886 Financial assets 1a 55,386 52,845 Cost of goods sold -90,429 -77,778 Total fixed assets 131,100 123,911 Gross profit 153,616 143,108

Current assets Other operating income 8 9,932 4,757 Inventories 2 63,296 55,570 Total income 163,548 147,865 Accounts receivable and other assets 3 59,632 47,985 Marketable securities 118 117 Employee income incl. social expenditure 9 -84,098 -77,496 Cash 12,109 2,389 Depreciation 10 -9,903 -8,476 Total current assets 135,155 106,061 Other operating expenses 11 -64,319 -59,618 Total expenses -- -158,320 -145,590 Deferred charges and prepaid expenses 1,571 992 Operating result 5,228 2,275 Total assets 267,826 230,964 Income from dividends and licenses 12 1,855 1,759

Shareholders' Equity and Liabilities Interest income 13 -3,271 -2,199 Depreciation on financial assets 14 -694 -1,407 all figures in 1,000 CHF Note 31 Dec 2007 31 Dec 2006 Ordinary business result 3,118 428

Shareholders' equity Extraordinary result 15 638 - Share capital 4,750 4,750 Net income before taxes 3,756 428 Non-voting share capital 9,500 1,500 Reserves 4a 93,994 83,341 Income taxes 16 -2,274 -1,412 Net profit / loss available 1,482 -722 Profit / loss after tax 1,482 -984 Total shareholders' equity 4 109,726 88,869 Profit carried forward - 262 Liabilities Provisions 5 40,449 33,748 Net profit / loss available 17 1,482 -722 Accounts payable and other payables 6 116,816 107,677 Total liabilities 157,265 141,425

Accrued charges and deferred income 835 670

Total shareholders' equity and liabilities 267,826 230,964

42//43 Balance Sheet of Weleda Group Statement of income as of 31 December 2007 of Weleda Group for the time period of 1 January to 31 December 2007

Assets

all figures in 1,000 CHF Note 31 Dec 2007 31 Dec 2006 all figures in 1,000 CHF Note 2007 2006

Fixed assets Sales 7 361,248 323,324 Intangible assets 1 10,757 8,436 - Decrease/ + Increase in finished goods 11,741 8,526 Property, plant and equipment 1 127,902 118,922 Total sales 372,989 331,850 Financial assets 1a 3,739 4,053 Cost of goods sold -85,931 -80,585 Total fixed assets 142,398 131,411 Gross profit 5 287,058 251,265

Current assets Other operating income 8 3,397 4,115 Inventories 2 96,947 78,161 Total income 290,455 255,380 Accounts receivable and other assets 3 61,366 57,271 Marketable securities 325 500 Employee income incl. social expenditure 9 -146,552 -129,835 Cash 20,786 8,229 Depreciation 10 -16,302 -13,598 Total current assets 179,424 144,161 Other operating expenses 11 -114,265 -102,076 Total expenses -277,119 -245,509 Deferred charges and prepaid expenses 3,275 2,327 Operating result 13,3363 9,871 Total assets 325,097 277,899 Income from dividends and licenses 2113. .228 Interest income 13 - 4,971 -4,067 Shareholders' Equity and Liabilities Depreciation on financial assets 14 -703 -1,424 all figures in 1,000 CHF Note 31 Dec 2007 31 Dec 2006 Ordinary business result 7,873 4,608 Shareholders' Equity Share capital 4,750 4,750 Extraordinary result 15 638 - Non-voting share capital 9,500 1,500 Net income before taxes 8,511 4,608 Reserves 4a 103,319 88,738 Net profit / loss for the year 3,712 -113 Income taxes 16 - 4,452 -4,121 Minority interests 4,056 3,696 Profit after tax 4,059 487 Total Equity 4 125,337 98,571 Minorities' share of profits -347 .--600 Liabilities Provisions 5 50,909 40,122 Net profit / loss for the year 17 3,712 -113 Accounts payable and other payables 6 147,373 138,068 Total liabilities 198,282 178,190

Accrued charges and deferred income 1,478 1,138

Total equity and liabilities 325,097 277,8995

44//45 Report of the Proposed Appropriation of statutory auditors Available Earnings Weleda AG Arlesheim

Report of the statutory auditors to the general Report of the group auditors to the general Proposed Appropriation of Earnings by the Board of Directors meeting of Weleda AG, Arlesheim meeting of Weleda AG, Arlesheim As statutory auditors, we have audited the accoun- As auditors of the group, we have audited the con- CHF ting records and the financial statements (balance solidated financial statements (balance sheet, in- Net earnings from 2007 1,482,462.13 sheet, income statement and notes), pages 42 and come statement and notes), pages 44 and 45 as well 43 as well as 47 to 55, of Weleda AG for the year as 47 to 55, of Weleda Group for the year ended plus profits carried forward from the previous year - ended December 31, 2007. The prior year corres- December 31, 2007. The prior year corresponding Total available to shareholders 1,482,462.13 ponding figures were audited by other auditors. consolidated figures were audited by other group To be used as follows: These financial statements are the responsibility of auditors. Allocation to reserves 484,962.13 the board of directors. Our responsibility is to ex- These consolidated financial statements are the Distribution of 7 % dividends on share capital of CHF 4,750,000.00 332,500.00 press an opinion on these financial statements responsibility of the board of directors. Our responsi- Distribution of 7 % dividends on non-voting share capital of CHF 9,500,000.00 665,000.00 based on our audit. We confirm that we meet the bility is to express an opinion on these consolidated legal requirements concerning professional qualifi- financial statements based on our audit. We confirm Balance to be carried forward - cation and independence. that we meet the legal requirements concerning Total in accordance with the appropriation of available earnings 1,482,462.13 Our audit was conducted in accordance with Swiss professional qualification and independence. Auditing Standards, which require that an audit be Our audit was conducted in accordance with Swiss planned and performed to obtain reasonable assu- Auditing Standards, which require that an audit be Dividend CHF per share CHF per share CHF per share CHF per rance about whether the financial statements are planned and performed to obtain reasonable assu- non-voting share free from material misstatement. We have examined rance about whether the consolidated financial Share/non-voting share (nominal) 112.50 125.00 1,000.00 500.00 on a test basis evidence supporting the amounts and statements are free from material misstatement. Annual dividend 7 % 7.90 8.75 70.00 35.00 disclosures in the financial statements. We have also We have examined on a test basis evidence suppor- Minus 35 % Swiss withholding tax ./. 2.75 ./. 3.05 ./. 24.50 ./. 12.25 assessed the accounting principles used, significant ting the amounts and disclosures in the consolidated Net payment per share/non-voting share 5.15 5.70 45.50 22.75 estimates made and the overall financial statement financial statements. We have also assessed the presentation. We believe that our audit provides a accounting principles used, significant estimates reasonable basis for our opinion. made and the overall consolidated financial state- In our opinion, the accounting records and financial ment presentation. We believe that our audit pro- Payment of dividends statements and the proposed appropriation of avai- vides a reasonable basis for our opinion. Pending the agreement of the general meeting of shareholders to the proposed application of profits, we lable earnings comply with Swiss law and the com- In our opinion, the consolidated financial statements will transfer dividend payments during the 24th week of the year. pany's articles of incorporation. comply with Swiss law and the consolidation and 35 % Swiss withholding tax will be deducted from the gross dividend amount, which can usually be won back We recommend that the financial statements sub- valuation principles as set out in the notes. as a claim on tax returns. This applies to shareholders and holders of non-voting shares who are either Swiss mitted to you be approved. We recommend that the consolidated financial residents or who are residents of a country with a double tax agreement with Switzerland. For this reason, statements submitted to you be approved. the banking receipt should be safely stored and enclosed in the final tax return.

PricewaterhouseCoopers AG PricewaterhouseCoopers AG Arlesheim, April 10, 2008 Weleda AG Arlesheim On behalf of the Board of Directors

Dr. Rodolfo Gerber Thomas Blumer Dr. Rodolfo Gerber Patricia Willi Rolf Kerler Dr. Henner Ehringhaus 46//47 Auditor in charge Auditor in charge Chairman Vice Chairman

Basel, April 10, 2008 Basel, April 10, 2008 Notes to the Accounts of Weleda AG Notes items 1 - 17 Arlesheim and the Weleda Group Notes to the balance sheet and the statement of income Weleda Group and Weleda AG Arlesheim, with a branch office in Schwäbisch Gmünd

General explanatory remarks Receivables and liabilities were calculated offset from 1 Fixed assets The end-of-the-year financial balances for Weleda AG one another. Inventory balances were corrected by Intangible assets mainly concern deposits made for software. The increase in tangible assets is comprised mostly of Arlesheim and the Weleda Group are jointly commen- the amount of interim profit that they comprise. The capital expenditures for replacements and rationalization. Financial assets consist almost entirely of minority and majo- ted. The balances of Weleda AG Arlesheim and the values of equity holdings by the parent company rity holdings and loans. The holdings in, or loans made to, majority holdings were fully consolidated in the Weleda Weleda Group comply with laws and statutes. The were calculated offset from the available shareholders’ Group balance sheet. A depreciation schedule showing the development of fixed assets can be found on page 55. accounts were compiled in accordance with the equity values of the subsidiary companies. Positive 1a Financial assets corresponding requirements of the Swiss Code of and negative balances were tabulated under reserves Obligations. Certain entries to the balance sheet, as (capital account difference). In accordance with the Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 well as the Statement of Income, were summarised in full consolidation method, assets and liabilities, as in 1,000 CHF in 1,000 CHF order to provide the reader with a better overview. well as expenses and income of those companies in Shares in majority holdings 37,065 34,313 These entries are explained in detail in the notes. which a third party is involved were included in full Shares in minority holdings 134 134 in the group accounts. Third party shares of sharehol- Scope of consolidation ders’ equity, as well as the final results of consolidated Loans to majority holdings 17,626 17,538 In addition to the parent company Weleda AG companies, are shown separately. Other financial assets 561 860 Arlesheim and its branch office Weleda AG Total financial assets 55,386 52,845 Schwäbisch Gmünd, 16 subsidiaries and two indirect Balance sheet and valuation principles holdings are fully consolidated within the Weleda The financial accounts of all of the involved compa- The figure “Holdings in associated companies” increased in total by TCHF 2,752. This increase is comprised of the capital Group account. These companies are, without nies have been calculated in accordance with the tax increase of Weleda Argentina (TCHF 2,083) and the cancellation of adjustments of value for Brazil. The other financial and commercial conditions in their respective coun- assets particularly include loans to related persons and institutions. The reduction is primarily due to Dr. Greenfingers. exception, related to each other and are under the This item was fully written off in 2007. The loans to majority holdings include TCHF 4,356 in allowances. management of Weleda AG Arlesheim, through try. Acquired intangible assets have been calculated which Weleda AG has direct or indirect holdings at their purchase cost and reduced by scheduled depreciation. Property, plant and equipment were Weleda Group 31 Dec 2007 31.12.2006 of 50 % or more. in 1,000 CHF in 1,000 CHF calculated at their purchase or production cost minus Weleda (Australasia) Ltd. of New Zealand, Heart- depreciation. Shares in majority holdings 1,816 1,692 Balance AG of Switzerland, and Birseck Pharmacy AG Shares in minority holdings 134 555555134 of Switzerland were all consolidated using the capital Moveable asset items were predominantly deprecia- Loans to majority holdings 248 555555242 value method. ted on a reducing balance basis, all other items of Other financial assets 1,541 53 1,985 Three minority holdings in New Zealand, Peru and property, plant and equipment were depreciated Argentina were not consolidated. These are disclosed linearly. Small value items have been completely Total financial assets 3,739 4,053 in the group annual financial statements under finan- transcribed in the current year. Financial assets have cial assets. been strictly included at their purchase cost, and, The value “Shares in majority holdings“ refers to non-consolidated shares of Weleda (Australasia) Ltd. of New Zealand, Birseck-Apotheke of Arlesheim, and the Institut de Formation et d'Edition pour la Médecine Anthroposophique when necessary, depreciated. The valuation of inven- (IFEMA) of Huningue. “Other financial assets“ is primarily composed of loans to third parties and other holdings. Consolidation method tories was conducted on the basis of purchase or The reduction in comparison to the previous year is mainly due to a specific allowance for bad debt made out to The consolidated financial statements are based on production cost while observing the principles of Dr. Greenfingers. the annual accounts of those companies that are lower cost or market and no assumed loss. included in the consolidation. The accounts have been Receivables and other asset items were figured in at 2 Inventories prepared in accordance with the respective commer- their nominal values. General risk of loss and indivi- cial and tax regulations as of December 31th 2007 and dual credit risk have been accounted for with lump The item “inventories” includes raw materials and supplies, finished and unfinished products, and resale goods. The are predominately audited and thoroughly tested. sums and specific charges for bad and doubtful increase in the Group can mainly be attributed to the increase of raw materials and supplies in Germany and to The normal calendar year serves as the consolidation debts. Marketable securities in current assets have finished products of Weleda Naturals. time period. been included at purchase price or stock exchange The conversion of the accounts for the branch office value. The designated provisions for pension plans in Schwäbisch Gmünd and foreign subsidiaries was and similar obligations have been calculated based conducted according to the current rate method. All on actuarial principles, while taking tax regulations items of the balance sheet and statement of income into account and while fully covering fiscal fractio- were converted to Swiss Francs according to the nal values. Remaining provisions cover all recognisa- exchange rate on the date of the balance sheet. The ble risks for undetermined obligations. Liabilities are 48//49 following currency exchange rates have been applied: included at the respective amount at which they are to be repaid. Year-end exchange rate in CHF per 2007 in CHF per 2006 1 EURO 1.66 1.61 1 USD (US Dollar) 1.135 1.21 1 GBP (Pound Sterling) 2.26 2.39 100 SEK (Swedish Krona) 17.60 17.80 1 Peso (Argentinean Peso) 0.36 0.40 3 Receivables Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 In addition to trade receivables, this item also includes other receivables and assets. in 1,000 CHF in 1,000 CHF

Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Legal reserves 15,400 3,400 in 1,000 CHF in 1,000 CHF Reserves for own shares and non-voting shares 532 591 Trade receivables from other companies 24,881 22,014 Other reserves 78,062 79,350 Trade receivables from associated companies 18,806 7,430 Total reserves 93,994 83,341 Trade receivables from companies in which a minority interest is held 432 519 Other receivables / assets in connection with other companies 3,704 6,067 Weleda Group 31 Dec 2007 31 Dec 2006 Other receivables / assets in connection with affiliated companies 11,146 11,164 Total reserves 103,319 88,738 Other receivables / assets in connection with companies in which a minority interest is held 110 111 The reduction in “Reserves for own shares and non-voting shares” was added to “Other reserves”. Receivables from shareholders 21 89 Own shares and non-voting shares 532 591 5 Provisions Total receivables 59,632 47,985 Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Weleda Group 31 Dec 2007 31 Dec 2006 in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF Pension provisions 16,961 16,067 Trade receivables from other companies 52,894 46,758 Tax provisions 940 - Trade receivables from companies in which an interest is held 465 577 Other provisions 22,548 17,681 Other receivables / assets in connection with other companies 7,344 8,957 Total provisions 40,449 33,748 Other receivables / assets in connection with companies in which an interest is held 110 299 Receivables from shareholders 21 89 Weleda Group 31 Dec 2007 31 Dec 2006 Own shares and non-voting shares 532 591 Pension provisions 19,559 18,249 Total receivables 61,366 57,271 Other provisions including tax provisions 31,350 21,873 Total provisions 50,909 40,122 Other receivables of the Weleda AG in connection with other companies were reduced, which can mainly be attributed to the elimination of tax prepayments in Germany. Trade receivables related to associated companies increased by “Other provisions” mostly refers to paid vacations, profit sharing, post-approval and registration costs under pharma- TCHF 11,376. This item mainly includes open account receivables from Weleda Naturals GmbH, Weleda N.V. of the ceutical law, and outstanding invoices. The increase in other provisions of Weleda AG is mainly due to the increase in Netherlands, Weleda Inc., USA (Weleda North America) and Weleda S.A. of France. Germany (TCHF 3,946) and in Switzerland (TCHF 919). For the Weleda Group, the provisions increased for Weleda Naturals (TCHF 1,039) and Weleda North America 4 Equity development in 2007 (TCHF 1,726). The provisions cover all risks and liabilities that were recognizable as of the balance sheet date, yet with amounts that cannot be clearly defined at this time. Weleda AG Arlesheim Weleda Group in 1,000 CHF in 1,000 CHF Equity at start of financial year 88,869 53 98,571 6 Accounts payable Increase in non-voting share capital 8,000 53 8,000 Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Increase due to change in exchange rate 997 in 1,000 CHF in 1,000 CHF Share premium reserves 12,000 53 12,000 Trade credit from other companies 30,829 29,679 Changes in consolidation - Trade credit from associated companies 518 5555552,262 Dividend payments -625 -696 Other short-term liabilities to other companies 15,957 8,089 Net profit 2007 1,482 53 3,712 Other short-term liabilities to associated companies and companies in which an interest is held 40 555555- Minority interests 347 Liabilities to shareholders 714 555555707 Value adjustments not affecting profits 2.406 Loans from associated companies 17,753 53 17,328 Total equity at end of financial year 109,726 125,337 Other long-term liabilities 51,005 53 49,612 of which funds, debenture bonds, and trustee loans total 49,087 53 47,332 The favorable exchange rate parity is due in large part to the value increase of the Euro against the Swiss Franc. In the case of dividend payments, the surplus profit of the Weleda Group in comparison to Weleda AG is equivalent to distri- Total liabilities 116,816 107,677 butions to minority shareholders. Weleda Group 31 Dec 2007 31 Dec 2006 4a Reserves Trade credit from other companies 41,449 42,290 This item includes statutory and free reserves/provisions of Weleda AG Arlesheim. In 2007, the free reserves/provisions Trade credit from companies in which a minority interest is held 8 - were increased by TCHF 12,000 through the premiums earned through raised non-voting share capital. Appreciations to 50//51 tangible assets of Weleda Ltda., Brazil, and Weleda S.A., France (TCHF 1,658 and TCHF 533, respectively) were tabulated Other short-term liabilities to other companies 31,565 23,993 directly under reserves. Liabilities to shareholders 2,286 1,595 The difference in capital offset is also included for the Weleda Group. Other long-term liabilities to banks and other companies 72,065 70,190 of which funds, debenture bonds and trustee loans total 59,924 58,698 Total liabilities 147,373 138,068 The reduction in trade payables from companies associated with Weleda AG can be attributed to a reduction in Germany in 10 Depreciation debts owed to Weleda France and Weleda Naturals. The decrease in trade payables was eliminated within the Group. The expansion of »other short-term liabilities to other companies« by Weleda AG and the Group can be mainly accounted for by Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 the acceptance of a short-term bank loan in Germany. in 1,000 CHF in 1,000 CHF “Other long-term liabilities“ of Weleda AG and the Group to banks and other companies increased by TCHF 1,875. Weleda Intangible assets 1,748 1,334 Switzerland increased their loan from the “Freie Gemeinschaftsbank” by TCHF 1,000. Of particular note is the fact that a cur- Property, plant and equipment 7,802 6,822 rency exchange rate-related reassessment of all Euro-funds, bonds, and loans took place at a rate of 1.66. Current assets 353 320 Total depreciation 9,903 8,476 7 Sales by product area Sales consist of the product areas “pharmaceuticals” (33%) and cosmetics/dietary products (67%). Sales of these products mainly take place in pharmacies, drug stores, and health and natural foods stores. Weleda Group 31 Dec 2007 31 Dec 2006 Intangible assets 2,237 1,845 Weleda Group 31 Dec 2007 31 Dec 2006 in mio CHF in mio CHF Property, plant and equipment 13,277 10,779 Current assets 788 974 Total sales 361,2 323,3 Total depreciation 16,302 13,598 The Weleda Group achieved consolidated worldwide sales of CHF 361.2 million in 2007. This represents an increase of CHF 37.9 million or 11.7% in comparison to 2006. The increased depreciation of property, plant and equipment can be attributed to the new construction projects in Germany and Switzerland.

8 Other income 11 Other expenses Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 This item includes, but is not limited to, distribution expenses such as advertising and market communication, sales in 1,000 CHF in 1,000 CHF documents, material cost of external sales and all postal costs. Furthermore, it includes costs for building and machine Other income 4,234 3,188 maintenance, legal and consulting costs, IT expenses and costs for third-party research and other operative and non- Income from properties 85 89 operative expenses.

Other various income 5,613 1,480 Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Total income 9,932 4,757 in 1,000 CHF in 1,000 CHF Sales and distribution costs 36,470 32,971 Weleda Group 31 Dec 2007 31 Dec 2006 Operating costs 9,970 9,963 Other income 748 1.022 Administrative costs 14,890 13,452 Income from properties 89 104 Contributions, levies, property and capital taxes 1,246 1,042 Other various income 2,560 2,989 Other various expenses 1,743 2,190 Total other income 3,397 4,115 Total other expenses 64,319 59,618

“Other various income” is mainly a product of the reversal of provisions and allowances. The increase in other various income for Weleda AG is mainly due to license revenue (TCHF 2,560) originating during a different period and sales Weleda Group 31 Dec 2007 31 Dec 2006 proceeds (TCHF 548) from asset disposal in Germany. Both transactions were eliminated on a Group level. Sales and distribution costs 68,173 59,050 Operating costs 18,542 17,197 9 Employee income and social expenses Administrative costs 20,802 19,003 This item contains, in addition to employee income, social security contributions, provisions for retirement and the transfer to pension accrual. Contributions, levies, property and capital taxes 3,720 3,051 Other various expenses 3,028 3,775 Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Total other expenses 114,265 102,076 in 1,000 CHF in 1,000 CHF Employee income 67,700 62,224 Social contributions and pension fund 16,398 15,272 12 Income from dividends and licenses Total expenses 84,098 77,496 Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 in 1,000 CHF in 1,000 CHF Weleda Group 31 Dec 2007 31 Dec 2006 Dividends from associated companies 598 564 Employee income 113,792 100,073 License income from associated companies 1,174 1,075 Social contributions and pension fund 32,760 29,762 License income from companies in which a minority interest is held - 40 Total expenses 146,552 129,835 License income from other companies 83 80 Total income from dividends and licenses 1,855 1,759 52//53 Dividends originate from Weleda France, Netherlands, Great Britain, Spain, and the Birseck-Apotheke (Pharmacy). 13 Interest income Development in fixed assets

Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Currency Weleda AG Arlesheim 1 Jan 2007 adjustment Additions Disposals Depreciation 31 Dec 2007 in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF Interest from loans to associated companies 1,239 1,197 Intangible assets 6,716 144 2,917 -4 -1,748 8,025 Interest and similar income 412 197 Property, plant and equipment 64,350 1,163 10,915 -937 -7,802 67,689 Interest and similar expenses -4,922 -3,593 Financial assets 52,845 501 4,183 -1,449 -694 55,386 Total interest income -3,271 -2,199 Total 123,911 1,808 18,015 -2,390 -10,244 131,100

Currency Weleda Group 31 Dec 2007 31 Dec 2006 Weleda Group 1 Jan 2007 adjustment Additions Disposals Depreciation 31 Dec 2007 in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF in 1,000 CHF Interest and similar income 1,232 1,844 Intangible assets 8,436 198 4,409 -49 -2,237 10,757 Interest and similar expenses -6,203 -5,911 Property, plant and equipment 118,922 2,113 21,150 -1,006 -13,277 127,902 Total interest income -4,971 -4,067 Financial assets 4,053 37 705 -353 -703 3,739

The item “Interest and similar expenses” for Weleda Group includes interest of TCHF 2,199 for the GLS fund in Germany, Total 131,411 2,348 26,264 -1,408 -16,217 142,398 Dutch debenture loans and Swiss trustee loans. The same item under Weleda AG includes loan interest of TCHF 605 on the Weleda Trademark, which were again eliminated within Weleda Group. A significant factor in the negative interest Fire insurance values for property, plant and equipment 31 Dec 2007 31 Dec 2006 results for Weleda AG was the influence of exchange rate losses (TCHF 1,110). Outside borrowing created an additional in 1,000 CHF in 1,000 CHF interest burden of TCHF 835. Weleda AG Schwäbisch Gmünd 131,253 120,934 Weleda AG Arlesheim 51,406 29,850 14 Depreciation of financial assets This item includes valuation allowances for the loan to HeartBalance AG (330 TCHF) and Dr. Greenfingers (364 TCHF). Weleda S.A. Huningue 46,916 43,200

15 Extraordinary result Own shares and non-voting shares 31 Dec 2007 31 Dec 2006 The extraordinary result can be attributed to the sale of two multi-storey apartment buildings owned in Switzerland. Balance of own shares in number 269 219 Balance sheet value in CHF 476,031 423,625 16 Income taxes Balance of own non-voting shares in number 45 134 The income taxes are largely due to the result situation in Germany, with Naturals, France and the Netherlands. Balance sheet value in CHF 56,250 167,500 17 Net profit for the year The trading of shares was mainly achieved at 250 % of the nominal value. Minority shareholders in Weleda Group’s net income reached a share of 347 TCHF (previous year: 600 TCHF).

Funds, debenture bonds, and trustee loans Contingent liabilities and other financial obligations Amount Interest rate Amortisation Guarantees 31 Dec 2007 31 Dec 2006 in CHF in CHF Loan, GLS Weleda Fund I to Weleda AG 5,112,919 EUR 4.0 - 7.0 % until 31 Dec 2008 Weleda AG Arlesheim 3,652,370 299,331 Loan, GLS Weleda Fund II to Weleda AG 10,000,000 EUR 3.5 - 5.5 % from 2011 Weleda Group 6,512,417 3,000,604 Debenture loan, Weleda Netherlands 531,922 EUR 6.3 % from 2004 Debenture loan, Weleda Netherlands 1,326,000 EUR 3.5 - 4.0 % from 2008

Leasing obligations 31 Dec 2007 31 Dec 2006 Debenture loan, Weleda Netherlands 2,844,000 EUR 4.0 - 4.5 % from 2010 in CHF in CHF Debenture loan, Weleda Netherlands 1,826,000 EUR 4.25 - 4.75 % from 2012 Weleda AG Arlesheim 1,403,998 1,935,083 Trustee loan, Weleda Switzerland 24,000,000 CHF 2.75 - 3.25% from 2009 Weleda Group 2,760.000 4,090,031

Leasing obligations for Weleda AG include computer hardware, vehicles, and production machinery. Significant majority holdings Argentina Weleda S.A., Argentina, Buenos Aires, Corporate capital: Peso 6,648,018 (previous year: Peso 1,589,000), Weleda AG holding: 100.0 % (previous year 99.9 %) Liabilities for benefit provisions Austria Weleda Ges.mbH & Co. KG, Vienna, Corporate capital: Euro 1,100,000, Weleda AG holding: 100.0 % Weleda AG Arlesheim 31 Dec 2007 31 Dec 2006 Brazil Weleda Ltda., Sao Paulo, Corporate capital: BRL 19,321,013 (previous year BRL 19,377,959) in CHF in CHF Weleda AG holding: 100.0 % Pension fund 1,633,027 2,026,193 France Weleda S.A., Huningue, Corporate capital: Euro 3,400,000, Weleda AG holding: 81.9 % Welfare funds 72,730 67,439 Germany Weleda Naturals GmbH, Schwäbisch Gmünd, Corporate capital: Euro 25,000, Weleda AG holding: 100.0 % Mortgage provision fund - 400,000 Great Britain Weleda (UK) Ltd. Ilkeston, Corporate capital: GBP 1,465,000, Weleda AG holding: 93.9 % 54//55 Italy Weleda Italia S.r.l., Milan, Corporate capital: Euro 500,000, Weleda AG holding: 100.0 % Mortgaged or assigned assets securing obligations 31 Dec 2007 31.12.2006 Netherlands Weleda N.V. Zoetermeer, Corporate capital: Euro 2,268,901, Weleda AG holding: 100.0 % and assets subjects to retention of title in CHF in CHF Sweden Weleda Holding AB Järna, Corporate capital: Skr. 12,300,000, Weleda AG holding: 98.0 % Weleda AG Arlesheim 28,613,383 22,259,711 (previous year 95.5 %) Weleda Group 31,723,188 25,275,846 Switzerland Weleda Trademark AG, Arlesheim, Corporate capital: CHF 1,000,000, Weleda AG holding: 100.0 % USA Weleda Inc., Palisades, N.Y., Corporate capital: US$ 3,025,461, Weleda AG holding: 100.0 % Value added calculation of the Weleda Group 2007

Value added calculation 1. Sources/origins of value added The output sum of the Weleda Group increased in (in mio CHF) Impressum 2007 by CHF 37.2 million or 11.3 % in 2007, amoun- The Annual Report of Weleda AG 2007 is available in German, ting to a total of CHF 366.7 million. English, and French. In the event that the English or French Following the deduction of purchases for goods 366,7366.7 translations differ from the original German text, the German 350 mio version is binding. Date of publication: Friday, June 6, 2008. and/or services from other companies, the value 2007 in mio CHF added amounts to CHF 178.3 million (compared 2006 in mio CHF to CHF 155.4 million in the previous year). Publisher Approximately 82.2 % of the achieved value added 300 mio 329.5 Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland was dedicated to employee income. Weleda AG, Möhlerstraße 3-5, D-73525 Schwäbisch Gmünd, www.weleda.com In this context, we would like to put particular 250 mio emphasis on the fact that we have deliberately Editors chosen the words “income” and “employees”, Moritz Aebersold, Susi Lotz (Project Management), Theo Stepp rather than “personnel expenses” and “personnel”. Additional assistance We view our employees as participants in the perfor- 200 mio 188.4 Dr. Bettina Arnold-von Versen, Jennifer Barckley, Rainier Dierdorf, mance process, as “co-entrepreneurs”, and not as a 174.1 178.3 Birgit Frank, Ursula Hirt, Rolf Kerler, Patrick Kersting, production factor. In the process, we would like to Claude Pfiffner 155.4 promote and support the independent responsibility, 150 mio We would like to thank all co-workers who have contributed to the production of this Annual Report. initiative, and self-image of our employees; the value added calculation is therefore not only an important Photography economic tool, but rather important in a social sense 100 mio Juerg Buess, Irmin Eitel, Valentin Jeck, Christina Kiehs-Glos, and in respect to corporate culture. Alberto Leonardis, Michael Leuenberger, Michael Peuckert, Angelika Salomon, Walter Schneider, Bernd Seliger, Roughly 11.3 % of the value added remained in the Weleda image archives company. This portion provides the most important 50 mio foundation for financing new capital ventures and Concept and design for maintaining financial independence. 2005 Werbung + Direktmarketing GmbH CHF 4.4 million or 2.5 % of the value added were Output Prepayments Value added realized Printing paid in taxes. Ulenspiegel Druck GmbH, printed using Resista F Dividends totalling CHF 997,500 were distributed to (based on renewable raw materials) shareholders and non-voting shareholders in 2007. Paper Debt servicing increased by CHF 0.3 million. Cover: LuxoSamt PEFC-Mix IMO-24o71, Inner part: Cyclus Print based on 100 percent recycled paper 2. Appropriation of value added (in mio CHF) in accordance with RAL UZ-14 – ‘Blue Angel’ environmental label Item no. 50069700 in mio CHF 2007 2006 +/- Remuneration 146.6 129.8 +12.9 % Tax payments 4.4 4.1 +7.3 % geprüftes Umweltmanagement Corporation 20.1 15.0 +34.0 % D-155-00126 Distributions 1.0 0.6 +66.7 % Debt servicing 6.2 5.9 +5.1 % Total value added 178.3 155.4 +14.7 % Art.-Nr. 50069800