Annual Report 2012 Key Data Fielmann at a Glance 2012 2011 2010 2009 2008 Sales in ¤ m external sales 1) inc. Vat 1,289.2 1,229.9 1,158.8 1,113.4 1,057.6 Change in % + 4.8 + 6.1 + 4.1 + 5.3 + 7.4 Consolidated sales exc. Vat 1,107.1 1053.4 993.7 952.5 902.7 Change in % + 5.1 + 6.0 + 4.3 + 5.5 + 7.6 Quantities sold glasses/thousands 7,070 6,740 6,460 6,430 6,100 Change in % + 4.9 + 4.3 +0.5 + 5.4 + 1.2 Pre-tax profit 2) in ¤ m 180.6 173.6 170.3 163.9 161.8 Change in % + 4.1 + 2.0 + 3.9 + 1.3 + 18.7 Net income 2) in ¤ m 129.7 125.4 120.8 115.3 113.9 Change in % + 3.4 + 3.8 + 4.8 + 1.2 + 38.9 Cash flow from current business activity in ¤ m 295.8 132.2 145.1 115.7 114.7 Change in % + 123.9 – 8.8 + 25.4 + 0.9 + 2.5 Financial assets in ¤ m 287.1 246.1 231.7 205.8 208.9 Change in % + 16.7 + 6.2 + 12.6 – 1.5 + 40.8 Group equity ratio in % 60.8 61.4 61.8 62.4 59.0 Investment in ¤ m 32.1 38.4 39.0 41.1 37.7 Change in % – 16.4 – 1.5 – 5.1 + 9.0 – 10.9 Number of Branches 671 663 655 644 620 Employees 3) as at 31. 12. 15,494 14,871 13,733 13,235 12,608 of which trainees 2,779 2,738 2,674 2,497 2,212 Key data per share earnings in ¤ 3.01 2.91 2.80 2.67 2.63 Cash flow in ¤ 7.04 3.15 3.45 2.76 2.73 Dividend in ¤ 2.70 2.50 2.40 2.00 1.95 1) Sales including Vat/inventory change 2) 2011: adjusted following revaluation in accordance with IaS 19 3) 2012: unweighted; 2011: adjusted, unweighted Glasses: Fielmann the name Fielmann is synonymous with fashion eyewear at a fair price. Fielmann is known to 90 per cent of the German population. We are the market leader. With 23 million Germans wearing Fielmann glasses, every second pair of glasses is sold by the company. Fielmann is firmly rooted in the industry and is active at every level of the value-added chain in the optical industry. We are manufacturers, agents and opticians. Fielmann has shaped the optical industry. It was Fielmann which made health service glasses attractive and socially acceptable, removed the stigma of wearing them and democratised spectacle fashion. time and time again, Fielmann has introduced pioneering customer-oriented serv- ices to the market. the fundamental hallmarks of our success are customer-friendly services, an extensive selection of models at guaranteed reasonable prices, the best technical equipment and a high level of technical competence. “you are the customer” is the guiding principle of our corporate philosophy. abso- lute dedication to customer needs has taken us right to the top, and we identify with our customers. every member of our staff is committed to this principle. We shall continue to demonstrate our customer focus and core competence in new markets. Contents 2 Foreword 6 Boards 8 Supervisory Board Report 10 Strategy 18 The shares 20 Key industry data 26 Management Report 52 Annual accounts 113 Auditor’s Report 114 Branches Foreword Dear Shareholders and Friends of the Company, Since opening the first branch 40 years ago, Fielmann has sold more than 120 million pairs of glasses. today, 23 million people are wear- ing Fielmann and 90 per cent of our current cus- tomers intend to buy their next pair of glasses from us too. More than 80 per cent of our employees hold Fielmann shares. the share price develop- ment is a reflection of their trust in the company. Since going public in 1994, the price of Fiel- Günther Fielmann mann shares has increased by 542 per cent. With its 12,975 members of staff, Fielmann is the biggest employer in the optical industry in Germany (in europe: 15,494) and with 2,779 trainees it is also the major trainer. Since the company was founded, more than 10,000 individuals have learnt the craft of the optical profession at Fielmann. even in times of economic uncertainty, Fielmann offers its customers, employees and shareholders reliability and stable value. While the rest of the optical industry in Germany reported a decline in unit sales of 1 per cent in 2012, Fielmann’s sales improved by 330,000 to 7.07 million pairs of glasses (+4.9 per cent). external sales revenue increased by ¤ 59,3 million to ¤ 1.29 billion (+ 4.8 per cent), while consolidated sales revenue grew by 5.1 per cent to ¤ 1.11 billion. We increased earn- ings by 4.1 per cent to ¤ 180.6 million and net income by 3.4 per cent to ¤ 129.7 million. the pre-tax profit margin now stands at 16.3 per cent. Our success is also the success of our em- ployees and shareholders. In light of the posi- tive business development and available liquid- ity measured in hundreds of millions, the Su- pervisory and Management Boards are recom- mending payment of a dividend of ¤ 2.70 per share (previous year: ¤ 2.50). this represents a dividend yield of 3.7 per cent on the year- end closing share price. Our equity ratio after Konstanz, Rosgartenstraße 2 Annual Report 2012 Foreword annual Report 2012 3 Foreword payment of the 2012 dividend stands at 60.8 ture state-of-the-art technology in consulting, per cent. Fielmann is unencumbered by debt. eyesight testing and workshops. We display We owe our success to a stringent customer an entire universe of glasses, including major focus and competent and committed employ- brands, international design models and the ees. they identify with customers and provide fashion eyewear of our own Fielmann collec- them with a standard of service that they would tion. Our prices are guaranteed to always be wish to receive themselves. Fielmann’s staff are affordable. fair, friendly and competent and have the satis- there is ample proof of our keen pricing fying task of finding the best possible solution policy: with 5 per cent of all opticians’ shops for each and every customer, irrespective of (Fielmann: 572 branches, the industry: 12,030 their budget. shops) in Germany, Fielmann has a market year after year, Fielmann invests more than share of 20 per cent of the total sales revenue ¤ 17 million in training its apprentices. Na- and more than 50 per cent in terms of unit sales. tional awards are proof that the training is of If sales revenue and unit sale market shares a high standard. In 2012, Fielmann accounted were reconciled, Fielmann would have sold its for all national winners in the German optical glasses at the average price for the industry. industry competition as well as all federal state Fielmann is continuing its expansion with winners in the apprenticeship examinations. On customary good judgement. as a family com- average over the last five years we have trained pany, Fielmann thinks in terms of generations 93 per cent of all national winners and 87 per and sets great store by organic growth, rather cent of all federal state winners, with a 5 per than risky acquisitions. Cash flow is funding this cent share of optical stores. further expansion. We place great demands on our manage- Germany is our home market. We achieve ment. Fielmann can only grow if it has well market shares of between 40 per cent and 50 qualified staff. Our 671 branches record on av- per cent in medium-sized towns virtually from erage fifteen times the unit sales and five times the outset. In the medium term, our plan is to op- the sales revenue of the average optician. Our erate 700 branches in Germany, selling more super-centres achieve on average thirty times than 7 million pairs of glasses. the unit sales and ten times the sales revenue of We are so successful in adjacent areas of the average optician. We have to train manag- europe because we have been able to export ers for branches of this size ourselves and at the the principles of our success in Germany to Fielmann academy at Schloss Plön, we prepare neighbouring countries. We offer consumers the future managers for europe. this non-profit more than just the certainty of being reasonably facility trains more than 6,000 course partici- priced. In other countries, we stand out from pants every year and is also available to exter- our competitors even more than in Germany, nal opticians. in terms of location, size, equipment, selection, Fielmann always aims to be better and offer price and professional advice. lower prices than the other opticians. Based on In the medium term, our plan is to operate our fundamental understanding of the market, 780 branches in Germany, austria and Swit- a new generation of professional opticians has zerland, selling more than 8 million pairs of emerged: contemporary, innovative and rea- glasses and registering sales revenue amount- sonably priced. Our ultra-modern shops fea- ing to ¤ 1.6 billion. 4 Annual Report 2012 Foreword Cologne, Schildergasse We have identified potential growth op- service by displaying even more frames to our portunities in many areas. Our customer base customers, increasing the number of examina- offers considerable potential: on average, our tion rooms, expanding our network of audiol- customers are younger than those of our tradi- ogy departments and reducing waiting times tional competitors.