CONTENTS 1 THANK YOU 39 GROUP MANAGEMENT REPORT 39 The Würth Group 14 COMMITMENT 40 Economic environment 42 Business development 16 Experiencing art and culture 42 Sales by region 20 Sharing commitment 24 Shaping education 46 The operational units of the Würth Group Würth Line: 28 BULLETIN 48 The Würth Line divisions 28 Report of the Advisory Board Allied Companies: 2014 WE SAY 30 Essay by the Chairman of the Supervisory 50 Electrical Wholesale unit Board of the Würth Group’s Family Trusts 51 Trade unit 32 Report of the Central Managing Board 52 Production unit thank 53 Electronics unit 54 RECA Group unit 34 THE BOARDS 55 Tools unit 56 Screws and Standard Parts unit 34 Legal and organizational 57 Financial Services unit you structure of the Würth Group 58 Net assets, financial position and 35 Advisory Board Annual Report of the Würth Group 36 Central Managing Board results of operations 38 Customer Advisory Board 63 Research and development 66 Risk and opportunities report 72 Employees 75 Corporate governance report 76 Subsequent events 76 Outlook 79 CONSOLIDATED FINANCIAL STATEMENTS 80 Consolidated income statement 81 Consolidated statement of comprehensive income 82 Consolidated statement of financial position 84 Consolidated statement of cash flows 86 Consolidated statement of changes in equity 87 Consolidated value added statement 88 Notes to the consolidated financial statements ANNUAL REPORT of the Würth Group 2014 AT A GLANCE » www.wuerth.com THE WÜRTH GROUP AT A GLANCE OPERATIONAL UNITS SHARE IN SALES Würth Line divisions WÜRTH GROUP 2014 2014 2013 Change 2010 2011 2012 2013 2014 in % in millions in millions in % of EUR of EUR Sales in millions of EUR 8,633 9,699 9,985 9,745 10,126 Employees 62,433 66,113 65,169 63,571 66,044 Metal 16.2 1,643 1,603 + 2.5 Pre-tax operating result * in millions of EUR 385 395 415 445 515 Return on sales in % 4.5 4.1 4.2 4.6 5.1 Auto 14.1 1,423 1,421 + 0.1 EBIT in millions of EUR 398 450 448 495 554 EBITDA in millions of EUR 690 736 762 798 831 Wood 9.8 996 971 + 2.6 Net income for the year in millions of EUR 268 271 279 309 378 Industry 9.2 930 858 + 8.4 Cash flow from operating activities in millions of EUR 216 540 618 599 612 Investments in millions of EUR 283 455 465 433 367 Construction 6.3 638 601 + 6.2 Equity in millions of EUR 2,867 3,042 3,204 3,399 3,683 Allied Companies Total assets in millions of EUR 6,826 7,771 7,649 7,978 8,142 Total 55.6 5,630 5,454 + 3.2 Rating by Standard & Poor’s A/stable A/stable A/stable A/stable A/stable The consolidated financial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs). * Earnings before taxes, impairment of goodwill and financial assets, and changes recognized in profit or loss of non-controlling interests disclosed as liabilities SHARE OF SALES Allied Companies’ units 2014 2014 2013 Change in % in millions in millions in % of EUR of EUR SALES OPERATING RESULT Electrical Wholesale 9.9 1,001 976 + 2.6 WÜRTH GROUP in millions of EUR WÜRTH GROUP in millions of EUR Trade 9.2 930 872 + 6.7 Operating result in millions of EUR Return on sales as a percentage Production 6.9 696 656 + 6.1 9,985 10,126 9,745 10,000 9,699 600 Electronics 5.5 552 504 + 9.5 8,633 515 445 RECA Group 4.8 490 473 + 3.6 7,500 450 415 385 395 Tools 3.6 369 342 + 7.9 Würth Line 5,000 300 6.0 Screws and Standard Parts 2.4 238 243 – 2.1 Financial Services 1.0 106 109 – 2.8 2,500 150 3.0 Other 1.1 114 116 – 1.7 Total 44.4 4,496 4,291 + 4.8 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 THE WÜRTH GROUP AT A GLANCE OPERATIONAL UNITS SHARE IN SALES Würth Line divisions WÜRTH GROUP 2014 2014 2013 Change 2010 2011 2012 2013 2014 in % in millions in millions in % of EUR of EUR Sales in millions of EUR 8,633 9,699 9,985 9,745 10,126 Employees 62,433 66,113 65,169 63,571 66,044 Metal 16.2 1,643 1,603 + 2.5 Pre-tax operating result * in millions of EUR 385 395 415 445 515 Return on sales in % 4.5 4.1 4.2 4.6 5.1 Auto 14.1 1,423 1,421 + 0.1 EBIT in millions of EUR 398 450 448 495 554 EBITDA in millions of EUR 690 736 762 798 831 Wood 9.8 996 971 + 2.6 Net income for the year in millions of EUR 268 271 279 309 378 Industry 9.2 930 858 + 8.4 Cash flow from operating activities in millions of EUR 216 540 618 599 612 Investments in millions of EUR 283 455 465 433 367 Construction 6.3 638 601 + 6.2 Equity in millions of EUR 2,867 3,042 3,204 3,399 3,683 Allied Companies Total assets in millions of EUR 6,826 7,771 7,649 7,978 8,142 Total 55.6 5,630 5,454 + 3.2 Rating by Standard & Poor’s A/stable A/stable A/stable A/stable A/stable The consolidated financial statements of the Würth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs). * Earnings before taxes, impairment of goodwill and financial assets, and changes recognized in profit or loss of non-controlling interests disclosed as liabilities SHARE OF SALES Allied Companies’ units 2014 2014 2013 Change in % in millions in millions in % of EUR of EUR SALES OPERATING RESULT Electrical Wholesale 9.9 1,001 976 + 2.6 WÜRTH GROUP in millions of EUR WÜRTH GROUP in millions of EUR Trade 9.2 930 872 + 6.7 Operating result in millions of EUR Return on sales as a percentage Production 6.9 696 656 + 6.1 9,985 10,126 9,745 10,000 9,699 600 Electronics 5.5 552 504 + 9.5 8,633 515 445 RECA Group 4.8 490 473 + 3.6 7,500 450 415 385 395 Tools 3.6 369 342 + 7.9 Würth Line 5,000 300 6.0 Screws and Standard Parts 2.4 238 243 – 2.1 Financial Services 1.0 106 109 – 2.8 2,500 150 3.0 Other 1.1 114 116 – 1.7 Total 44.4 4,496 4,291 + 4.8 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CONTENTS 1 THANK YOU 39 GROUP MANAGEMENT REPORT 39 The Würth Group 14 COMMITMENT 40 Economic environment 42 Business development 16 Experiencing art and culture 42 Sales by region 20 Sharing commitment 24 Shaping education 46 The operational units of the Würth Group Würth Line: 28 BULLETIN 48 The Würth Line divisions 28 Report of the Advisory Board Allied Companies: 2014 WE SAY 30 Essay by the Chairman of the Supervisory 50 Electrical Wholesale unit Board of the Würth Group’s Family Trusts 51 Trade unit 32 Report of the Central Managing Board 52 Production unit thank 53 Electronics unit 54 RECA Group unit 34 THE BOARDS 55 Tools unit 56 Screws and Standard Parts unit 34 Legal and organizational 57 Financial Services unit you structure of the Würth Group 58 Net assets, financial position and 35 Advisory Board Annual Report of the Würth Group 36 Central Managing Board results of operations 38 Customer Advisory Board 63 Research and development 66 Risk and opportunities report 72 Employees 75 Corporate governance report 76 Subsequent events 76 Outlook 79 CONSOLIDATED FINANCIAL STATEMENTS 80 Consolidated income statement 81 Consolidated statement of comprehensive income 82 Consolidated statement of financial position 84 Consolidated statement of cash flows 86 Consolidated statement of changes in equity 87 Consolidated value added statement 88 Notes to the consolidated financial statements ANNUAL REPORT of the Würth Group 2014 AT A GLANCE » www.wuerth.com The term we consider most important in dealing with each other is: Excerpt from the principles of the Würth Group’s corporate culture thank you 1 2 THREE ANNIVERSARIES, ONE OCCASION TO SAY thank you Adolf Würth GmbH & Co. KG celebrates its 70th anniversary Back in 1945, a man started a company in Künzelsau. Today, that 65 company is the global market leader in its field. 70 Reinhold Würth celebrates 65 years in business The Chamber of Commerce and Industry of Heilbronn-Franken congratulates Reinhold Würth with the very first certificate honoring 65 years in business. 80 Reinhold Würth celebrates his 80th birthday One life, one company, one thank you. 3 MY LIFE IS FILLED WITH AN IMMENSE SENSE OF GRATITUDE Prof. Dr. h. c. mult. Reinhold Würth with his employees and numerous guests at the celebrations to mark 65 years in business on 30 September 2014. 4 5 Thank you Why is “thank you” the term we consider most important? Isn’t it one that we read in every second e-mail these days, making it almost overused? Isn’t it something we tend to just say for the sake of it, without really meaning it? Maybe – but we still need the term “thank you”, and not just to be polite. Genuine gratitude is more than just a superficial term or outdated figure of speech.