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CONTENTS
1 A CHANGE OF PERSPECTIVE
10 BULLETIN
10 Report of the Advisory Board
14 Report of the Central Managing Board
16 THE BOARDS
16 Legal and organizational structure
of the Wrth Group
17 Advisory Board
18 Central Managing Board
20 Customer Advisory Board
21 COMPANY PROFILE
22 COMMITMENT
22 Quo vadis Europe?
26 Experiencing art and culture
32 Sharing commitment
36 Shaping education
40 GROUP MANAGEMENT REPORT
40 Economic environment
41 Management reorganization
41 Business development
42 Sales by region
46 The operational units of the Wrth Group
Wrth Line:
48 The Wrth Line divisions
Allied Companies:
50 Electrical Wholesale unit
51 Trade unit
52 Production unit
53 Electronics unit
54 RECA Group unit
55 Tools unit
56 Screws and Standard Parts unit
57 Financial Services unit
58 Results of operations, net assets
and nancial position
64 Research and development
67 Risk and opportunities report
71 Employees
73 Corporate responsibility
74 Corporate governance report
75 Subsequent events
75 Outlook
79 CONSOLIDATED FINANCIAL STATEMENTS
80 Consolidated income statement
81 Consolidated statement of
comprehensive income
82 Consolidated statement of nancial position
84 Consolidated statement of cash ows
86 Consolidated statement of changes in equity
87 Consolidated value added statement
88 Notes to the consolidated nancial statements
AT A GLANCE
CHANGE OF
Annual Report of the Wrth Group 2013
P E R S P E C T I V E
www.wuerth.com
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CONTENTS
1 A CHANGE OF PERSPECTIVE
10 BULLETIN
10 Report of the Advisory Board
14 Report of the Central Managing Board
16 THE BOARDS
16 Legal and organizational structure
of the Wrth Group
17 Advisory Board
18 Central Managing Board
20 Customer Advisory Board
21 COMPANY PROFILE
22 COMMITMENT
22 Quo vadis Europe?
26 Experiencing art and culture
32 Sharing commitment
36 Shaping education
40 GROUP MANAGEMENT REPORT
40 Economic environment
41 Management reorganization
41 Business development
42 Sales by region
46 The operational units of the Wrth Group
Wrth Line:
48 The Wrth Line divisions
Allied Companies:
50 Electrical Wholesale unit
51 Trade unit
52 Production unit
53 Electronics unit
54 RECA Group unit
55 Tools unit
56 Screws and Standard Parts unit
57 Financial Services unit
58 Results of operations, net assets
and nancial position
64 Research and development
67 Risk and opportunities report
71 Employees
73 Corporate responsibility
74 Corporate governance report
75 Subsequent events
75 Outlook
79 CONSOLIDATED FINANCIAL STATEMENTS
80 Consolidated income statement
81 Consolidated statement of
comprehensive income
82 Consolidated statement of nancial position
84 Consolidated statement of cash ows
86 Consolidated statement of changes in equity
87 Consolidated value added statement
88 Notes to the consolidated nancial statements
AT A GLANCE
CHANGE OF
Annual Report of the Wrth Group 2013
P E R S P E C T I V E
235
385
395
The consolidated nancial statements of the Wrth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs).
* Earnings before taxes, impairment of goodwill and nancial assets, and changes recognized in prot or loss of non-controlling interests disclosed as liabilities
** Negative outlook
WRTH GROUP
2009 2010 2011 2012 2013
Sales in millions of EUR 7,522 8,633 9,699 9,985 9,745
Employees 57,882 62,433 66,113 65,169 63,571
Pre-tax operating result * in millions of EUR 235 385 395 415 445
Return on sales in % 3.1 4.5 4.1 4.2 4.6
EBIT in millions of EUR 267 398 450 448 495
EBITDA in millions of EUR 549 690 736 762 798
Net income for the year in millions of EUR 111 268 271 279 309
Cash ow from operating activities in millions of EUR 800 216 540 618 599
Investments in millions of EUR 263 283 455 465 433
Equity in millions of EUR 2,600 2,867 3,042 3,204 3,399
Total assets in millions of EUR 6,292 6,826 7,771 7,649 7,978
Rating by Standard & Poors A/neg.** A/stable A/stable A/stable A/stable
THE WRTH GROUP AT A GLANCE
SALES
WRTH GROUP in millions of EUR
2,500
5,000
7,500
10,000
3.0
6.0
2012
Operating result in millions of EUR
Return on sales as a percentage
2009 2010 2011 2012
415
2013
9,745
2013
445
7,522
8,633
9,699
2009 2010 2011
9,985
OPERATIONAL UNITS
SHARE IN SALES
Wrth Line divisions
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Metal 16.4 1,603 1,658 3.3
Auto 14.6 1,421 1,451 2.1
Wood 10.0 971 966 + 0.5
Industry 8.8 858 869 1.3
Construction 6.2 601 598 + 0.5
Total 56.0 5,454 5,542 1.6
Wrth Line
Allied Companies
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Electrical Wholesale 10.0 976 988 1.2
Trade 8.9 872 849 + 2.7
Production 6.7 656 591 + 11.0
Electronics 5.2 504 691 27.1
RECA Group 4.9 473 483 2.1
Tools 3.5 342 355 3.7
Screws and Standard Parts 2.5 243 265 8.3
Financial Services 1.1 109 104 + 4.8
Other 1.2 116 117 0.9
Total 44.0 4,291 4,443 3.4
SHARE IN SALES
Allied Companies units
OPERATING RESULT
WRTH GROUP in millions of EUR
150
300
450
600
235
385
395
The consolidated nancial statements of the Wrth Group are prepared in accordance with the International Financial Reporting Standards (IFRSs).
* Earnings before taxes, impairment of goodwill and nancial assets, and changes recognized in prot or loss of non-controlling interests disclosed as liabilities
** Negative outlook
WRTH GROUP
2009 2010 2011 2012 2013
Sales in millions of EUR 7,522 8,633 9,699 9,985 9,745
Employees 57,882 62,433 66,113 65,169 63,571
Pre-tax operating result * in millions of EUR 235 385 395 415 445
Return on sales in % 3.1 4.5 4.1 4.2 4.6
EBIT in millions of EUR 267 398 450 448 495
EBITDA in millions of EUR 549 690 736 762 798
Net income for the year in millions of EUR 111 268 271 279 309
Cash ow from operating activities in millions of EUR 800 216 540 618 599
Investments in millions of EUR 263 283 455 465 433
Equity in millions of EUR 2,600 2,867 3,042 3,204 3,399
Total assets in millions of EUR 6,292 6,826 7,771 7,649 7,978
Rating by Standard & Poors A/neg.** A/stable A/stable A/stable A/stable
THE WRTH GROUP AT A GLANCE
SALES
WRTH GROUP in millions of EUR
2,500
5,000
7,500
10,000
3.0
6.0
2012
Operating result in millions of EUR
Return on sales as a percentage
2009 2010 2011 2012
415
2013
9,745
2013
445
7,522
8,633
9,699
2009 2010 2011
9,985
OPERATIONAL UNITS
SHARE IN SALES
Wrth Line divisions
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Metal 16.4 1,603 1,658 3.3
Auto 14.6 1,421 1,451 2.1
Wood 10.0 971 966 + 0.5
Industry 8.8 858 869 1.3
Construction 6.2 601 598 + 0.5
Total 56.0 5,454 5,542 1.6
Wrth Line
Allied Companies
2013
in %
2013
in millions
of EUR
2012
in millions
of EUR
Change
in %
Electrical Wholesale 10.0 976 988 1.2
Trade 8.9 872 849 + 2.7
Production 6.7 656 591 + 11.0
Electronics 5.2 504 691 27.1
RECA Group 4.9 473 483 2.1
Tools 3.5 342 355 3.7
Screws and Standard Parts 2.5 243 265 8.3
Financial Services 1.1 109 104 + 4.8
Other 1.2 116 117 0.9
Total 44.0 4,291 4,443 3.4
SHARE IN SALES
Allied Companies units
OPERATING RESULT
WRTH GROUP in millions of EUR
150
300
450
600
1
DO YOU LIKE TO CHANGE PERSPECTIVE ?
IF YOURE IN THE SOUTH AND LOOKING NORTH,
YOURE BOUND TO SEE THE SUN.
IS IT NICER TO DREAM
WITH YOUR HEAD AT THE TIP OF
YOUR TOES?
SHOULD YOU BUTTER YOUR BREAD
OR BREAD YOUR BUTTER?
EVER EATEN SPAGHETTI
OFF THE CEILING?
PEOPLE WHO WALK
ON THEIR HANDS ALWAYS HAVE
A VIEW OF THE BLUE SKY.
CAN YOU THINK LATERALLY WHEN
YOURE STANDING UP?
FALLING IN LOVE IS A SURE THING WHEN
YOURE HEAD OVER HEELS.
2
WRTH VISIONS
PEOPLE WITH FLEXIBLE
MINDS CAN ALWAYS
FIND THE RIGHT PLACE
TO WORK.
3
4
WRTH VISIONS
NOT EVERY COMPANY
CAN SAY THAT THE
SKYS THE LIMIT.
5
6
WRTH VISIONS
THE POSSIBILITIES
ARE ENDLESS FOR
PEOPLE WHO ALLOW
THEMSELVES TO BE
INSPIRED.
7
8
WRTH VISIONS
9
WITH A HEAD FULL
OF IDEAS, YOU CAN
LITERALLY TURN THE
WORLD UPSIDE
DOWN FOR YOUR
CUSTOMERS.
10
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Ladies and Gentlemen,
We want to venture towards more democracy. When the German Chancellor Willy Brandt used this phrase as the guiding
principle behind his government statement on 28 October 1969, the German economy was in full bloom. There was a real
sense of a new beginning among society at large, and technological progress was fuelling hopes for the future everything
was possible, it seemed.
So what remains of this confdence and unbridled optimism? Not much! Dramatic events like the terrorist attacks of
11 September 2001 and the fnancial and economic crisis of 2008 have done too good a job of exposing just how vulnerable
our globalized society is. So it comes as no surprise that the World Banks recent Risk and Opportunity report focuses
on economic risks, devoting only a few lines to the opportunities. If nothing else, this fxation on risk is casting a shadow
over day-to-day business life. Our customers are also feeling the heat, for example when they seek to secure external fnancing
for their investments.
The main thing that an environment that is hostile towards investment does is to hinder progress. The consequences are fatal.
The American economist Robert J. Gordon, for example, believes that in the long run, economic growth is an impossibility
without innovation. As a company that sees itself as one of the driving forces of innovation on the market and that owes
its market leadership to this focus on innovation, we have to respond to these trends by venturing towards more change.
Or rather: by venturing towards even more change.
REPORT OF THE ADVISORY BOARD
Bettina Wrth, Chairwoman of the Advisory Board of the Wrth Group
11
Every reorientation process starts with a change of perspective
The last two years have encouraged us not only to look at how we work, but also to put our entire business organization
under the microscope. With total sales of EUR 9.75 billion, we were, sadly, unable to meet our targets for the 2013 fscal
year. This is something we really need to work on. On the other hand, we are encouraged by the fact that we achieved an
operating result of EUR 445 million. This is testimony to the unwavering motivation of our employees and to healthy levels
of productivity. I would like to express my most sincere thanks to the members of the management and to all of our employees
for this hard work.
Anyone who wants to develop is well advised to start by taking a critical look at his or her own perceptions. To enable us
to do this, we called on the advice of external experts. Having someone look at the company through an outsiders eyes
helped us to take a good look at established structures at all levels, simplify our processes and focus even more on what
the market needs. Looking back, we left virtually no stone unturned and made the necessary adjustments within the space
of only a few months. The sales activities of the Wrth Line are a good example of just how much of an impact this process
of change has had on our company. Ever since our company was established, we have focused primarily on direct sales in
this area. We have also set up an efcient sales branch network and have continually stepped up our e-commerce activities
over the past few years.
WHICHEVER WAY YOU
LOOK AT IT: WE HAVE
OUR FUTURE IN OUR
OWN HANDS.
12
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
We are changing at all levels
Given that we are now generating a growing proportion of our sales via these additional sales channels, the next logical
step was to move from our previous focus on the sales force towards a contemporary multi-channel strategy. Coordinated
interaction between the diferent customer contact points allows us to ofer tailor-made sales solutions for every sector
and company size true to our motto: To each customer their own Wrth. As far as our sales staf are concerned, this
means, for example, that they can focus more on their role as their customers problem-solver in the future. This expertise
where the customer needs it remains indispensable for us, which is why we will be continuing to strengthen our sales force.
Our quest to achieve more clout and speed in our concentrated marketing eforts also involves looking at our manage-
ment structures. We have whittled the Central Managing Board our most important strategic body down from seven to
four members. Robert Friedmann, Peter Zrn, Uwe Hohlfeld and Joachim Kaltmaier share responsibility for the Wrth Line
and our Allied Companies. Thanks to the reorganization measures, far-reaching changes have been initiated within the
entire company within the space of only a few months. This would have been a virtually impossible feat without motivated
employees. Sales development over the past few months has confrmed that these changes were the right move, with signs
of real success already starting to emerge. I would like to take this opportunity, on behalf of the Advisory Board, to express
my thanks again.
We will be pinpointing and exploiting new market opportunities
In summary, we have initiated all of the necessary changes to get the Wrth Group on the path to growth. Our optimism is
also based on macroeconomic developments. The eurozone is past the worst. The current growth forecast for the German
economy comes in at 1.9 percent, which will also lay a good foundation for strong growth. In North and South America, the
forecasts are pointing to stable growth rates around the three percent mark. On the high-growth markets in the east India
with economic growth of 5.0 percent and China with 7.2 percent we are also on the cusp of setting new sales records. By
way of conclusion, we do not see too many risks lurking behind trends. Instead, we believe that they ofer good opportunities
for achieving solid growth again this year and allowing us to surpass the EUR 10 billion mark for consolidated sales. With
more than 400 companies in over 80 countries, Wrth has a presence in all of the worlds major regions. What is more, our
Allied Companies allow us to cover a broad spectrum of diferent services, allowing us to stimulate growth in many diferent
areas of our Group.
As a result, we are looking ahead with a sense of optimism and drive. After all, Change begets change. Nothing prop-
agates so fast. Charles Dickens words continue to ring true to this day. We have already taken the frst steps with the
far-reaching changes implemented over the past few months. And the current developments show that our resolve will pay of.
Work of the Advisory Board
In 2013, the Advisory Board of the Wrth Group held four extensive meetings, with the second joint strategy meeting of
the Advisory Board and the Central Managing Board being held as an extraordinary session in June 2013. These meetings
were based on the reports of the Central Managing Board members on the business situation, projections and opportunity
and risk management. All transactions subject to approval pursuant to the company statutes were submitted to the Advisory
Board for decision in good time and considered in detail; in urgent cases, resolutions were passed by circularization.
The activities of the Advisory Board in 2013 were characterized by a strong focus on providing strategic support to the
Central Managing Board. Key aspects of these activities include the new management structure of the Wrth Group and
13
Sincerely,
Bettina Wrth
Chairwoman of the Advisory Board
of the Wrth Group
the associated decision to reduce the size of the Central Managing Board and reorganize the Wrth Groups second-level
management. The strategic work of the Advisory Board also focused on the enhancement of the traditional Wrth business
model to create a multi- channel sales company, and the defnition of criteria allowing a refned assessment of the diferent
business models within the Allied Companies.
The three Advisory Board committees, the Audit Committee, the Investment Committee and the Personnel Committee, met
three times each in 2013. The committees serve to increase the efciency of the Advisory Board and carry out preparatory
work on complex issues. The Personnel Committee also has the power to pass resolutions regarding management employ-
ment contracts. The committee chairs each report regularly to the Advisory Board on the work of the committees.
On 8 April 2014, the Advisory Boards Audit Committee took an in-depth look at the 2013 consolidated fnancial statements,
including the Group management report, as well as the audit report prepared by Ernst & Young. Ernst & Young audited the
consolidated fnancial statements and the Group management report and issued an unqualifed opinion thereon. The Audit
Committee examined these documents and approved them. The Audit Committee also focused on risk management, the
corporate governance structure and internal audit.
The Advisory Boards Investment Committee assessed the investment projects that are subject to approval and classifed
them according to urgency and signifcance. The Wrth Group will remain true to its investment culture, exercising the nec-
essary degree of caution, as a prerequisite for the companys growth, meaning that the investments approved for the 2014
fscal year will be on a similar level to previous years, taking sales growth into account. The Advisory Board approved the
investment and fnancial plan of the Wrth Group for the fscal year 2014 at its meeting on 13 December 2013 based on
the proposal made by the Investment Committee.
The Advisory Boards Personnel Committee dealt, at its meetings, with all personnel measures falling within the Advisory
Boards area of competence, in particular also with the personnel measures associated with the reorganization of the
Groups frst and second-level management tiers. The Committees work also focused on the personnel development Group
function, which was reorganized with the establishment of the Wrth Business Academy in Rorschach. The Committee also
looked at succession planning and the structure of the incentive and remuneration systems.
The Advisory Board of the Wrth Group would like to thank the Central Managing Board and the Supervisory Board of the
Wrth Groups Family Trusts for the good working relationship, especially Prof. Dr. h. c. mult. Reinhold Wrth, Chairman of
the Supervisory Board of the Wrth Groups Family Trusts, who took part in all meetings of the Advisory Board. We would
also once again like to thank all employees for their strong commitment and their decisive action, as well as all our customers
and business partners for their loyalty to the Wrth Group.
14
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF THE CENTRAL MANAGING BOARD
Ladies and Gentlemen,
Stagnating sales increased earnings: this is the situation that Wrth was confronted with in 2013. Naturally, we would
like to have seen an upward trend for both fgures. But 2013 was not an easy year for Wrth. Varied overall economic
conditions resulted in diferent sales trends in the individual regions, with sales down in many places. This explains why
our sales in fscal year 2013 were down year-on-year to EUR 9.75 billion (2012: EUR 9.98 billion), which corresponds to
a drop of 2.4 percent. If we adjust the fgures to refect the solar activities, which were abandoned in 2012, the decline
comes in at 0.1 percent, as the solar sales amounted to around a quarter of a billion euros in 2012. We are still feeling
the impact of the economic crisis in southern Europe. After all, we generate 70 percent of our sales in the euro zone. Our
broad global standing helps us to counteract these trends. Our business on the US market, for example, showed stable
development, continuing on the upward trajectory plotted in recent years. This is also due to demand among private
households and the associated revival in the construction sector.
We are delighted to report an increase in our operating result for 2013, based on continuing operations, to EUR 445 million
despite the stagnating sales (2012: EUR 415 million). The most proftable region within the Group was Germany, which
generated an operating result of EUR 226 million (2012: EUR 210 million), underlining its role as the largest and most
important individual market for the Wrth Group. The entities outside Germany, too, generated a higher result than in 2012
despite the developments in southern Europe. The improvement in the operating result shows us that Wrth not only boasts
strong earnings power, but also that our measures to boost productivity and reduce fxed costs have borne fruit.
Robert Friedmann, Chairman of the Central Managing Board of the Wrth Group
15
The Wrth Group enjoys a solid standing in its traditional business areas and enjoys an excellent market position. Our
corporate culture is a special one that is put into practice day after day by each and every employee and demonstrated by
our managers: the foundation that supports the structure of our company. Nevertheless, the title of our Annual Report is
A change of perspective? Do we need a change of perspective?
It is becoming more difcult to achieve high growth rates. But that doesnt mean it is impossible. Because we are constantly
taking a critical look at ourselves and are open to change. This also means that we have to have the courage to grow, ex-
pand, reorganize and also make decisions. This fexibility has always been part of how we see ourselves. Our actions were
never characterized by a wish to rigidly follow a straight onward path without looking to the left or to the right, but rather to
keep our companys structure fexible enough to cushion any shocks and fuctuations. One of our key measures has been
the focus on new e-commerce activities, but these measures also include massive investment in innovative logistics, the expan-
sion of the sales force on young markets, the constant additions to the sales branch network and moves to position Wrth as
an employer in the manner that is best suited to the target group. On established markets, we are refning our sales activities
by way of regionalization, customer segmentation, the expansion of the customer base and a policy of seeking out potential.
But we are also asking ourselves fundamental questions: what, for example, will the workplace of the future look like at
Wrth? What options are open to us in order to systematically incorporate ecological, economic and social sustainability
into our day-to-day business? How can we grow in line with the wishes of our customers?
The thing that makes Wrth special are its employees. Their enthusiasm, their passion, their systematic approach. We would
like to thank them for their professionalism and commitment, especially in times when this isnt easy. We would like to thank
our customers, whose trust forms the basis for our work. And we would also like to thank the Councils of Confdence and
Works Councils in the Wrth Group, as well as the Customer Advisory Board, for their work. Their critical appraisal allows
us to move forward and opens the door to new perspectives. The cooperation with the members of the Advisory Board and
the Supervisory Board of the Wrth Groups Family Trusts is also consistently constructive. Even in the difcult 2013 fscal year,
we enjoyed the full support of the Wrth family. We would like to thank Prof. Dr. h. c. mult. Reinhold Wrth, his wife Carmen
and Bettina Wrth for their support, which has played a key role in ensuring that we can enhance our business models in a
strategically sustainable manner.
If you want to achieve something, you dont always have to turn the world upside down, but it sometimes helps to change
perspective and challenge long-held ideas.
We are optimistic as far as 2014 is concerned.
For the Central Managing Board of the Wrth Group
Robert Friedmann
Chairman of the Central Managing Board
of the Wrth Group
16
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
ORGANIZATIONAL STRUCTURE
Advisory Board
9 members
Central Managing Board
4 members
Executive Vice Presidents
20 members manage the strategic business units (functions, divisions, regions)
Managing Directors of over 400 separate entities
WRTH GROUP:
LEGAL STRUCTURE (SIMPLIFIED CHART)
WRTH FAMILY TRUSTS
Adolf Wrth GmbH & Co. KG
Germany
Wrth International AG
Switzerland
Wrth Finance International B.V.
Netherlands
Subsidiaries
outside Germany
Subsidiaries
outside Germany
Subsidiaries
outside Germany
Reinhold Wrth Holding GmbH
Germany
German
subsidiaries
Wrth Promotion Ges.m.b.H.
Austria
17
ADVISORY BOARD
Bettina Wrth
Chairwoman of the Advisory Board
of the Wrth Group
Dr. Frank Heinricht
Deputy Chairman of the Advisory
Board of the Wrth Group (since
1 January 2014), Chairman of the
Management Board of Schott AG,
Mainz
Peter Edelmann
Member of the Advisory Board,
Managing Partner of
Edelmann & Company, Ulm
Wolfgang Kirsch
Member of the Advisory Board
(since 1 January 2014), Chairman
of the Board of Management of DZ
Bank AG, Frankfurt/Main
Axel C. A. Krauss
Member of the Advisory Board,
Member of the Supervisory Board of
Unilever Deutschland, Hamburg
Dr. Bernd-Albrecht von Maltzan
Member of the Advisory Board,
former Divisional Board Member
and Senior Advisor at Private Wealth
Management Deutsche Bank AG,
Frankfurt/Main
Jrg Michel
Member of the Advisory Board
(since 1 January 2014), former
Member of the Central Managing
Board of the Wrth Group
Ina Schlie
Member of the Advisory Board
(since 1 January 2014), Head of
Group Tax at SAP AG, Walldorf
Dr. Martin H. Sorg
Member of the Advisory Board,
Certifed Public Accountant, Partner of
the law frm Binz & Partner, Stuttgart
Honorary Chairman of the
Advisory Board
Prof. Dr. h. c. mult. Reinhold Wrth
Chairman of the Supervisory Board of
the Wrth Groups Family Trusts
Honorary members of the
Advisory Board
Rolf Bauer
Honorary member (since 1 January
2014), former Member of the Central
Managing Board of the Wrth Group
Dr. Michael Rogowski
Honorary member, Chairman of the
Foundation Board of
Hanns-Voith-Stiftung, Heidenheim
Dr. Bernd Thiemann
Honorary member (since 1 January 2014),
former Chairman of the Management
Board of Deutsche Genossenschafts-
bank AG, Frankfurt/Main
The Advisory Board is the supreme supervisory and controlling body of the Wrth Group. It advises on strategy, approves
corporate planning as well as the use of funds. It appoints the members of the Central Managing Board, the Executive Vice Presidents
as well as the managing directors of the companies generating high sales.
(as of 1 January 2014)
18
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
CENTRAL MANAGING BOARD
From left to right: Peter Zrn, Joachim Kaltmaier, Robert Friedmann, Uwe Hohlfeld
19
The Central Managing Board is the most senior decision-making board of the Wrth Group.
It has four members and is comparable to the management board of a group holding company.
Its most important duties include corporate strategy planning, the selection of executives as well
as the management of strategic business units and functions.
Robert Friedmann
Chairman of the Central
Managing Board
of the Wrth Group
Peter Zrn
Deputy Chairman of the
Central Managing Board
of the Wrth Group
Joachim Kaltmaier
Member of the Central
Managing Board
of the Wrth Group
Uwe Hohlfeld
Member of the Central
Managing Board
of the Wrth Group
20
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
The Customer Advisory Board brings together Wrth customers from the worlds of trade and industry. The mem-
bers report on developments in their sector and support Wrth in aligning its activities with customer requirements. The boards
meetings, which are held twice a year, also look at new products and services.
CUSTOMER ADVISORY BOARD
Roland Schuler
Member of the Board of Manage-
ment of BayWa AG, Munich
Burkhard Weller
Managing Partner of Wellergruppe
GmbH & Co. KG, Berlin
Frank Westermann
Managing Director of Karl Wester-
mann GmbH & Co. KG, Denkendorf,
Chairman of the Technology Com-
mittee of Landesverband Holz und
Kunststof, Baden-Wrttemberg
Rudolf Wohlfarth
Member of the management of the
Emil Frey Group, Chairman of the
Management Board of the Emil Frey
Group Germany, Stuttgart
Honorary Chairman of the
Customer Advisory Board
Gerhard Irmscher
Joachim Wohlfeil
Chairman of the Customer Advisory
Board, managing director of Ernst
Wohlfeil GmbH, Sanitrtechnik,
Karlsruhe, President of Handwerks-
kammer Karlsruhe (Chamber of
Trade Karlsruhe)
Johannes Moser
Former Director and now freelance
consultant of the company Imtech
Deutschland GmbH & Co. KG,
Stuttgart
Dr. Thomas Peukert
Managing Director of Stahl
CraneSystems GmbH, Knzelsau
21
COMPANY PROFILE
Wrth Group: world market leader for trading in assembly and fastening materials
The foundation stone for the Wrth Group was laid in 1945 by Adolf Wrth: he sets up Adolf Wrth GmbH & Co. KG, a simple
company selling screws and consisting of two men, the parent company of the Wrth Group, in Knzelsau.
After his fathers early death, Reinhold Wrth takes over at the helm of the family business aged 19. Back then, annual sales
came in at EUR 80,000. Today, 60 years later, the Group generates sales of EUR 9.75 billion and has a workforce of more
than 63,000. The Groups international focus started with the formation of the frst foreign company in the Netherlands in
1962. Today, the Group has more than 400 companies and operates in more than 80 countries.
The Wrth Group is split into two operational units: Wrth Line and Allied Companies. The Wrth Line companies are respon-
sible for the Groups conventional core business, the sale of assembly and fastening materials. More than 100,000 products
have to meet our exacting quality standards: screws, screw accessories, dowels, chemical technical products, furniture and
iron fttings, tools, stocking and picking systems and occupational safety equipment for professional users. Allied Companies
operate in related areas as sales or manufacturing companies, and as fnancial services providers.
With more than 400 sales branches, Adolf Wrth GmbH & Co. KG is closer to its customers than any of its competitors. The
company boasts around 1,500 sales branches across the globe. A sales organization that includes 30,000 sales representa-
tives worldwide guarantees the provision of competent advice to three million customers from trade and industry. Online
shop, e- Procurement, apps: the Wrth Group is profcient in the e-commerce sector, too. Our objective is clear: to ofer cus-
tomized services, practical system solutions and a broad range of products in order to make our customers work easier.
SALES DEVELOPMENT
WRTH GROUP in millions of EUR
2,500
5,000
7,500
10,000
CAGR: 22.0 %
(Compound Annual Growth Rate)
1995 1954 1960 1965 1970 1975 1980 1985 1990
9,745
5,136
1,234
282
33
1.0 0.08
2000 2005 2010 2013
8,633
22
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Ladies and Gentlemen,
If we look at the history of the European Union since those frst hesitant attempts to bring Europe
together after the Second World War, the period from the establishment of European Coal
and Steel Community in 1951 to today, at the end of 2013, then we can only say that astound-
ing progress has been made over these 62 years. Border controls have been abolished for
most European citizens; from Helsinki to Lisbon, and from Athens to Dublin, people use the
same currency to pay; but the creation of a single European jurisdiction is much more import-
ant. A lawyer I know, who is licenced to practice both in the US and in Germany, recently ex-
plained to me: As far as the legal system is concerned, the European Union is already streets
ahead of the United States of America.
The resulting latent changes in opinion among EU citizens, which are more of a subconscious
nature, should not be underestimated either. Although people in all member states never seem
to tire of bashing the EU and its excessive Brussels-based bureaucracy, the vast majority of
citizens would be loathed to see the abolition of the EU.
This ambivalent love-hate relationship can certainly be compared to the feelings of many
citizens from the former East Germany as time passes, memories of life in the former East
Germany become embellished, but I dont know anyone who would like to have the old East
Germany back.
If we look at which forces are putting the brakes on the further development of the European
Union, we can identify two main sources. First, obviously, our friends in the UK and second,
the opponents of the euro. Due to their island location, the British are born seafarers and trav-
elled the world for centuries with the British Empire. So we have to understand that integration
into a well- oiled European Union is perhaps time times harder, mentally and ideologically,
for our British friends than it is for all continental Europeans. If the referendum that is planned
in the UK for 2017 results in the majority of citizens voting against further membership of
the European Union, then we should not exert any pressure and should accept, in the spirit of
peace and friendship, an independent, isolated United Kingdom. This would also, to be hon-
est, remove one of the main obstacles to further EU integration.
The other obstacle comes from the opponents of the euro. The question that has reared its
head in Germany is that of a return to the German mark. If we look at the euro as a currency
from its introduction in 2002 to date, then the euro has certainly more than survived its bap-
tism of fre: the US would have liked to have seen the euro disintegrate in the course of the
real estate and mortgage crisis of 2008/2009, removing any competition to the dollar as a
reserve currency.
QUO VADIS EUROPE?
Prof. Dr. h. c. mult. Reinhold Wrth,
Chairman of the Supervisory Board
of the Wrth Groups Family Trusts
23
This did not happen. The economic power behind the euro zone, with its 318 millions citizens, provides a steady foundation
for the stability of our currency provided that the governments involved pursue a sensible currency policy.
One particularly strong argument in Germany is that we have to cough up to cover the debts of the southern European
countries, Greece, Italy, Spain and Portugal, as taxpayers, which is why the German mark should be reintroduced, as is
one of the main aims of the recently established political party, Alternative fr Deutschland (AfD).
Whether we like it or not, the truth of the matter is that Germany has to assume some liability for the debt of the southern
European countries as part of the ESM and EFSF rescue funds. And this is not a bad thing if we can summon only a tiny
spark of European solidarity: within the Federal Republic of Germany, a system known as Lnderfnanzausgleich (federal
state fscal equalization scheme) has been in place for decades. Traditionally, Baden-Wrttemberg, Bavaria and Hesse
have been paying billions into this pot every year in order to ensure more or less equal living conditions within Germany.
So why shouldnt this principle apply within the European Union? Germany, in particular, reaps manifold benefts from the
euro: if we were to abandon the single currency, a new German mark would soon appreciate so much against all of the
worlds other currencies that the German export industry would very quickly become uncompetitive and would sufer bitterly.
So we are currently beneftting massively from the euro.
Secondly, there is the return on investment, namely the fact that we can live in peaceful times. Is there anything more
precious in life? Not really.
I make no secret of the fact that Im a passionate European and would like to see less power given to nation states and, at
the same time, more moves to strengthen the underlying regions. We need the sense of a spiritual home, familiarity and secu-
rity that we can fnd as South Tyroleans, Bavarians, Flemish or Basques more than those that we can fnd as Germans, Ital-
ians, Belgians or Spaniards.
My conclusion: Vivat Europa!
Yours,
Reinhold Wrth
24
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
25
COMMITMENT:
ITS A QUESTION
OF HONOR.
26
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
EXPERIENCING ART AND CULTURE
Wrth House in Rorschach The inseverable links between art,
culture and Wrth are evident from Wrth House in Rorschach. The
new building on the Swiss bank of Lake Constance, which was offi-
cially opened on 20 April 2013, is home to more than just six Wrth
companies Wrth Finance, Wrth Financial Services AG, Wrth
ITensis, Wrth Logistics, Wrth Management AG and the event agency
marbet. The building is also home to a craftsman shop and the Wrth
Group training center. The Forum Wrth Rorschach also presents
Wrths extensive collection of artwork, which now comprises more
than 16,000 works of art, in an area measuring around 600 square
meters. Entitled Premire, the opening exhibition puts the main focal
points of the collection, classical modernism and contemporary art, in
the spotlight. There is a particular focus on Swiss art. A presentation
in the bright foyer of Forum Wrth Rorschach is dedicated to the Danish
sculptor Robert Jacobsen, one of the key artists represented in the
Wrth Collection from day one.
When it came to the realization of the new building, the renowned
Zurich-based architects Gigon / Guyer emerged as the winners in a
competition that attracted high-profile entries. Their plans are entitled
play of light (Lichtspiel) and pay tribute to the buildings unique
location on the lake. Wrth House Rorschach beckons to passers-by
with its green glass exterior that alternates between transparency
and reflection, and holds a mirror to the special flair and beauty of
the surrounding area. The relief formation of the building complex re-
acts to the station building opposite with low-rise cubes, and to the
vast expanse of the park and lake with a higher element. The five-
story building has a total volume of around 150,000 cubic meters,
with a glass shell covering the entire building. This outer layer of
glass features an offset arrangement of panes of glass with a green
hue and fine, metallic textile reinforcements. This produces a rhythmic
glass curtain.
Forum Wrth Rorschach is the 15th museum housing the Wrth Col-
lection. The building, on the banks of lake, is also the third Swiss loca-
tion, after Chur and Arlesheim, in which Wrth is making its corporate
culture truly visible for miles around in a high-quality design format.
Wrth House Rorschach is surrounded by a Jardin extraordinaire
that is open to the public, an exceptional garden that is brought to
life by the charming, mosaic sculptures some of which can be used
for play like the Dragon or the Bear designed by Niki de
Saint Phalle. A revolving Nana, one of her best-known figures, also
welcomes visitors to the part, symbolizing the world in the sculpture
named Le Monde. Anyone wandering along the edge of the lake
can encounter other highlights of modern sculpture, like the sun dial
sculpture or the monumental bronze figure Large Interior Form by
Henry Moore.
The extremely positive response to the building in eastern Switzer-
land can be seen not only from the rush of visitors keen to attend its
open day. Forum Wrth Rorschach has also proven extremely popu-
lar, with more than 50,000 visitors since it was opened.
27
RORSCHACH Located directly on the Swiss bank
of Lake Constance, the green-tinged crystalline struc-
ture complements the surrounding area harmoniously.
Wrth House Rorschach is home to six Wrth Group
companies, a craftsman shop, a training center and
600 square meters of exhibition space.
28
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Kunsthalle Wrth, Schwbisch Hall The Menagerie An Animal
Show from the Wrth Collection exhibition in Kunsthalle Wrth in
Schwbisch Hall rounded of a trilogy that invited visitors to wander
through nature in Forest Fascination, then showed the diversity of
the human species in From Head to Toe before turning its atten tion
to the human races closest relatives, animals. The fascinating aspects
of the animal world were illustrated with various works spanning all
eras of art history. The exhibition started with works by the famous
renaissance painter Lucas Cranach d.J., showed animal sculptures by
Leonhard Kern and presented oil paintings by Giovanni Segantini
and Carl Spitzweg, as well as works by Pablo Picasso, Andy Warhol,
David Hockney and Marc Quinn. The varied exhibition showed the
constantly changing relationship between humans and animals. Paint-
ings, sculptures, drawings, handicrafts, jewelry and furniture created
by more than 100 artists were on display to take visitors on a journey
into a world of bestial surprises.
Museum Wrth, Knzelsau Art from Austria has always been a
particular focal point of the Wrth Collection. These varied, quite
contrary works make up one of the largest private collections of Aus-
trian art outside of Austria. With the A.E.I.O.U. exhibition, Museum
Wrth in Knzelsau presented a varied selection from this collection
spanning the period from the late 19th century to the present day.
More than 100 paintings, drawings, graphics and sculptures by more
than 70 artists were on display. Starting with Gustav Klimt, the exhibi-
tion led visitors to contemporary works by artists like Herbert Brandl,
Xenia Hausner or Markus Redl. The title of the exhibition, A.E.I.O.U.
is a reference to the motto used by the Duke of Austria, who later be-
came Emperor, Friedrich III., in the 15th century to adorn his crests,
documents, inventory lists and buildings, the meaning of which has not
been definitively clarified to this day.
KUNSTHALLE WRTH Around
200 works from the late middle
ages to the present day were on
display in the Menagerie An
Animal Show from the Wrth Col-
lection exhibition in Kunsthalle
Wrth in Schwbisch Hall. In ad-
dition to paintings, graphics and
over-sized sculptures, the exhibi-
tion also features curious exotic
objects including antler furnishings,
containers or historical jewelry in
the form of animals. The exhibition
was accompanied by an extensive
educational program for all age
groups.
29
New presentation of the Falkenstein Altarpiece The Master of
Messkirch is not only one of the most important artists of pre-Renais-
sance German painting in Upper Swabia, he is also one of the most
mysterious. Possibly born in about 1490-95, he was most likely active
in the period between 1515 and 1540. In art history terms, the oeuvre
of this artist was obviously influenced by Albrecht Drer, Hans Baldung
Grien, Hans Schufelein and Hans von Kulmbach. He is considered
a precise observer of the human physiognomy, an excellent portrayer
of river and mountain landscapes and a true master of color. To mark
the acquisition of the corpus of the Falkenstein Altarpiece, one of
the masters major works, the Wrth Collection is now presenting its
entire stock of 17 panels by him at Johanniterkirche in Schwbisch
Hall. Two additional panels are on loan from the Stuttgart State
Gallery (Staatsgalerie Stuttgart). The high point of the exhibition is
the reunion of the Falkenstein Altar Retable, which the artist created
for Falkenstein Castle (near Messkirch) of the Barons von Zimmern
and which was divided into its separate parts and dispersed in the
19th century. A further accent is provided by the Zimmern Chronicle,
now in the manuscript collection of the Wrttemberg State Library in
Stuttgart. The Johanniterkirche itself received an award in 2013: the
Baden-Wrttemberg Chamber of Architects singled the renovated
church out as an exemplary architectural structure.
FULL PRESENTATION
OF THE FALKENSTEIN
ALTARPIECE The Master
of Messkirchs Falkenstein
Altarpiece was handed over
to the public in a ceremony
held at Johanniterkirche in
Schwbisch Hall.
30
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
WALK OF MODERN ART The Wrth Collection now enjoys a presence in the
very heart of Salzburg with sculptures by internationally renowned sculptors. The
Sphaera sculpture by German sculptor Stephan Balkenhol, displayed on Kapitel-
platz square, is more than nine meters high and holds its own as a self-sufcient
work of art.
Walk of Modern Art, Salzburg The Walk of Modern Art, created
in the heart of Salzburg, a World Heritage Site, over the course of ten
years has been entrusted to the Wrth Collection. For ten years, the
Salzburg Foundation had invited internationally renowned artists to
visit Salzburg every year and spend some time really engaging with
the city before creating a work of art for public display. The result is
a high-quality collection of sculptures leading to the most beautiful
parts of Salzburg, but also to places that are less obvious or where
you would not expect to fnd art. The works of art, which are freely
accessible and can be reached on foot, are the creations of Anselm
Kiefer, Mario Merz, Marina Abramovi, Markus Lpertz, James Tur-
rell, Stephan Balkenhol, Anthony Cragg, Christian Boltanski, Jaume
Plensa, Brigitte Kowanz, Manfred Wakolbinger and Erwin Wurm,
and focus on an interpretation of the individually selected locations.
An extension of the Walk of Modern Art can be found in the Wrth
Sculpture Garden at Schloss Arenberg.
International violin competition Since the early days of the Inter-
national Violin Competition, Wrth has been supporting this event
organized by the Kulturstiftung Hohenlohe cultural foundation by
donating prizes. The competition was held for the 15th time in August
2013 in Schntal Monastery, Baden Wrttemberg. More than 50 vi-
olinists up to age 21 were invited to show of their musical skills in the
competition.
One of the top prizes awarded as part of the competition is the Rein-
hold Wrth Promotion Prize, established by Adolf Wrth GmbH &
Co. KG in 2007 and worth EUR 5,000. In 2013, the prize went to the
young violinist Rennosuke Fukuda from Japan, who won over the jury
with his expressive interpretation and excellent technique. The Rein-
hold Wrth Promotion Prize must be used for specifc purposes and
is designed to give young musicians an opportunity to continue with
their training and develop their exceptional talent further over the
next few years.
31
REINHOLD WRTH
PROMOTION PRIZE
Rennosuke Fukuda from Japan is
the winner of the 2013 Reinhold
Wrth Promotion Prize. Wrth
awards this prize as part of the
International Violin Competition.
Wrth Prize of Jeunesses Musicales Deutschland Conductor
Bruno Weil is the winner of the EUR 10,000 2013 Wrth Prize of
Jeunesses Musicales Deutschland (JMD). The jury spoke of how
Bruno Weil managed to make music tangible as a profound human
statement, as the language of the soul. The specialist in Viennese
classicism and historically informed performances was said to stand
for high-quality interpretations that remain faithful to the truth and
impact of the music. The prize was handed over by Harald Unkel-
bach, Chairman of the Management Board of the Wrth Foundation,
and JMD President Daniela Stork. The laudatory speech was held by
former German government minister Theo Waigel. The awards cere-
mony was held as part of a concert given by the university symphony
orchestra of the University of Music and Performing Arts in Munich,
conducted by the prize-winner.
The Wrth Prize of Jeunesses Musicales Deutschland is a coveted
accolade in the German music world. It is awarded to artists, ensem-
bles and projects that bring the values and goals of JMD to life in
an exemplary manner. Since 1991, personalities such as conductor
Gustavo Dudamel, cellist Sol Gabetta, ensembles such as the Federal
Youth Orchestra or projects like the Education Program of the Berlin
Philharmonic Orchestra have received the prize. The prize is donated
by the Wrth Foundation.
Wrth Literature Prize Beauty queen Sarah Rotblatt drives up to
a petrol station (Die Schnheitsknigin Sarah Rotblatt fhrt an einer
Tankstelle vor) was the motto of the 24th Wrth Literature Prize. Adolf
Wrth GmbH & Co. KG has been awarding the literature prize, worth
EUR 7,500, in cooperation with the University of Tbingen every year
since 1996. The award goes to short stories featuring a convincing
and unique use of language.
More than 600 authors had submitted their stories for the 2013 Wrth
Literature Prize. Norbert Mller from Berlin took first place with his
story entitled Zigaretten holen (Buying cigarettes). The silver award
went to Kai Metzger from Dsseldorf for his text Morningside Drive.
The author Christoph Ransmayr set the topic for the literature prize
during his Tbingen poetry professorship in 2012. The professorship
is also a project organized by Adolf Wrth GmbH & Co. KG and is
hosted at the German Seminar (Deutsches Seminar) of Tbingen Uni-
versity. Once a year, two authors are invited to hold public lectures and
offer seminars and workshops for students. Over the past few years,
the guest authors included not only Christoph Ransmayr, but also
Raoul Schrott, Jonathan Franzen, Daniel Kehlmann, Juli Zeh, Feridun
Zaimolu, Ilija Trojanow, Pter Esterhzy, Terzia Mora, Brigitte
Kronauer, Lars Gustafsson, Ruth Klger, Amos Oz and Herta Mller.
32
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
SHARING COMMITMENT
Hotel Restaurant Anne-Sophie In 1999, Carmen Wrths aim was
to create an establishment in Knzelsau that would foster the integra-
tion and personal development of people with disabilities. The Hotel
Restaurant Anne-Sophie opened its doors in 2003 on her initiative,
featuring a special concept: people with and without disabilities work
together hand in hand. Disabled employees are trained by specialists
so that they can work independently in the kitchen, as wait staf, in
housekeeping or in building services. This makes it easier for them to
participate in social life and allows them to earn a living.
In the spring of 2013, the Hotel Restaurant Anne-Sophie celebrated
its tenth birthday. It currently employs a workforce of 50, around one
third of whom have disabilities. Ever since it was opened, the estab-
lishment has made a name for itself as a meeting place for gourmets
and an example of stylish hotel culture, with the warm and friendly
atmosphere as one of its trademarks.
To mark its tenth anniversary, the new main building opened in the
heart of Knzelsau in May 2013. It adds another 18 guest rooms, as
well as a gym and spa area for hotel guests and a conference build-
ing to the hotel complex. The new restaurant handi ap. ofers guests
ambitious cuisine using high-quality produce. The lindele shop is also
part of the hotel. The Hotel Restaurant Anne-Sophie uses the shop to
sell products made by people with physical or mental disabilities, as
well as people from socially deprived backgrounds. Customers can
choose from a range of 250 gift and gourmet items.
Wrth Foundation Set up in 1987 by Reinhold and Carmen Wrth,
the Wrth Foundation promotes projects in the felds of science and
research, art and culture, and education. The Foundation currently
has total capital of EUR 7.6 million. In addition to its own activities,
the Foundation also supports third-party projects and initiatives
mainly in the Hohenlohe region where the Group has its head ofce.
The Foundations own activities in 2013 included the music festival
for people with disabilities. The motto of the music festival held in
October was Live with your heart, and it featured twelve musical
bands on two stages in Museum Wrth in Knzelsau. The special
thing about the festival was that the people playing in the bands all
have disabilities. The idea for the event came from Carmen Wrth,
who has been an advocate for people with disabilities for many years.
Major third-party projects that have received regular support in the
post include the Hohenloher Kultursommer (Summer of Arts in Hohen-
lohe), as well as the international violin competition organized every
other year by Kulturstiftung Hohenlohe (Hohenlohe Cultural Founda-
tion), the Junge Oper Schloss Weikersheim (Young Opera Schloss
Weikersheim) and the work of Historischer Verein Wrttemberg-
Franken (Historical Association Wrttemberg- Franconia).
The Wrth Foundation also supports the Freie Schule Anne-Sophie
schools in Knzelsau and Berlin and the Competence Center for
Economic Education. Moreover, it administers the foundation for the
promotion of the Reinhold Wrth University of Heilbronn University
in Knzelsau.
33
NEW BUILDING FOR HOTEL RESTAURANT
ANNE-SOPHIE The new representative main build-
ing of the Hotel Restaurant Anne-Sophie is located
in the heart of Knzelsaus old town. The extension
has been awarded a four-star rating by the German
Hotel & Catering Association. The hotel now has a
total of 49 guest rooms, 18 of which are located in the
new wing. People with and without disabilities work
here hand in hand.
34
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
French medals for Wrth and Weber France bestowed hon-
ours upon Reinhold Wrth and the Director of the Wrth Collection
C. Sylvia Weber with the Knight of the Legion of Honour and the
Order of Chivalry in Art and Literature. The awards were presented
by Ambassador Maurice Gourdault-Montagne in Kunsthalle Wrth
in Schwbisch Hall. This is Frances way of recognizing the exem-
plary cross-border commitment to culture and art shown by Reinhold
Wrth and C. Sylvia Weber in Germany and France. By way of exam-
ple, Wrth has consistently promoted the work of the Institut franais
in Stuttgart and the Centre Culturel Franco- Allemand in Karlsruhe. In
2008, Wrth also opened a museum in Erstein, Alsace, in immediate
proximity to Wrth France. C. Sylvia Weber has been at the helm of
the Wrth museums since 1991 and has been the curator behind nu-
merous exhibitions.
Folkwang Prize The Folkwang Prize, endowed with 25,000 euros,
was handed over to Reinhold Wrth in Essen. Since 2010, the Folk-
wang Museum Association has been using the prize as a way of rec-
ognizing individuals and institutions who have made a particular con-
tribution to promoting art and making it accessible to broad sections
of the population in the spirit of the museums founding father, Karl
Ernst Osthaus (1874 1921). The jury emphasized Reinhold Wrths
lifelong passionate commitment to art and cultural education. As a
collector and art lover, they said, his conviction that art would stimu-
late the working environment of his employees across the globe, serv-
ing to motivate them, was his guiding force. His impressive collection
and also the numerous associated galleries set up with a direct link to
administrative buildings is testimony to this.
INTERNATIONAL FOLKWANG PRIZE Prof. Dr. h. c. mult. Reinhold Wrth (second
from the right) has been awarded the Folkwang Prize in only its second year. The fol-
lowing individuals attended the ceremony to ofer their congratulations (from the left):
Dr. Tobia Bezzola, Director of Museum Folkwang, Essen, Dr. E. h. Achim Middelschulte,
Chairman of the Board of Management of the Folkwang Museum Association, and
Prof. Dr. Martin Roth, Director of the Victoria and Albert Museum, London.
35
Sports sponsorship The international sports sponsorship activities
of the Wrth Group are characterized by continuity and success.
With its commitments in China (national basketball team), the US
(NASCAR racing series) and South America (referee advertising at
the Copa Liberta dores), Wrth is focusing primarily on growth markets
and is positioning itself in sports that are popular on these markets.
The NASCAR sponsorship in the US, in particular, was crowned with
success in 2013: Sam Hornish Jr. came in second in the Nationwide
Series.
In addition to these sponsorship activities, Wrth remains a major
sponsor of European football and winter sports. Wrths advertising
boards could be seen at a total of 169 European World Cup qualify-
ing matches and in four Bundesliga stadiums. The brands presence
on the racing and thermal wear of the German Ski Association (DSV)
SPORTS SPONSORSHIP The NASCAR sponsorship was crowned
with success in 2013: Sam Hornish Jr., driver of the Wrth racing car,
came in 2nd.
Representative offices In Berlin since 2003 and in Brussels since
2005. Wrth attaches a great deal of importance to critical dialog
with social groups and institutions. Wrth House Berlin and Wrth
Ofce Brussels have established themselves as key dialog forums
for German and international politics. Listening and understanding,
but also articulating and commenting this is how Wrth believes
debate should take place with business and industry, at discussion
rounds, conferences and receptions. Both representative ofces also
ofer a platform for cultural events in order to transport our under-
standing of commitment in a hands-on manner. Our aim is to be open
so that others can be open with us.
also attracts global attention to the brand on the television, the Inter-
net and in newspapers. Brand values like team spirit, momentum and
passion are transported perfectly by the sports sponsorship activities.
36
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Freie Schule Anne-Sophie in Knzelsau and Berlin The inde-
pendent school Freie Schule Anne-Sophie was opened in 2006
in Knzelsau as a private all- day school on the initiative of Bettina
Wrth. The bilingual sister school in Berlin, which ofers classes in
German and English, opened in time for the 2011/12 academic year.
The unique educational concept is the same in both schools: target
and performance-oriented learning in a stimulated environment. You
can independently achieve what you put your mind to. And where
you cant, Ill gladly support and help you. This is the fundamental
thinking behind day-to-day educational life at both schools.
Freie Schule Anne-Sophie in Knzelsau saw its frst class of graduates
obtaining the Abitur, Germanys university entrance qualifcation, in
2013. The 16 learning partners obtained an average grade of 2.2
(on a scale of 1 (best) to 6 (worst)). In September 2010, Freie Schule
Anne-Sophie had started with the upper grammar school level, known
as the College. The grammar school obtained state recognition as
an alternative school on 1 August 2011 and has had the same rights
and obligations as any state-run grammar school ever since. Learning
partners at Freie Schule Anne-Sophie undergo the same Abitur exam-
inations as pupils attending state schools in Baden-Wrttemberg.
In Berlin, the frst set of learning partners passed their intermediate
secondary graduation certifcate. This certifcate is a substitute for the
Realschule (senior secondary school) certifcate and assesses the
performance of pupils in Grade 10 of the German school system. The
2014/15 academic year will see learning partners in Berlin enter the
upper grammar school level.
Another highlight in the school calendar of Freie Schule Anne-Sophie
in Knzelsau was its recognition as a MINT-friendly school by the
educational initiative MINT Zukunft schafen, an initiative launched
to promote natural science and engineering subjects in schools. This
award is considered a seal of the teaching quality in the MINT sub-
jects: mathematics, information technology, natural sciences and
technology. MINT Zukunft schafen aims to combat the lack of spe-
cialist employees in professions in the felds of natural sciences and
technology. Talent promotion measures and moves to break down
educational barriers are designed to inspire pupils to study MINT
subjects. 600 schools in Germany have already been singled out
as being MINT-friendly. The patron behind the initative is the German
Chancellor, Dr. Angela Merkel.
Freie Schule Anne-Sophie is funded by the Wrth Foundation and is
promoted by the Wrth Group, in particular by Adolf Wrth GmbH &
Co. KG.
SHAPING EDUCATION
37
FREIE SCHULE ANNE-SOPHIE Designated a
MINT-friendly school, one area that Freie Schule
Anne-Sophie focuses on is natural sciences. In the
chemistry lab, learning partners examine the phe-
nomenon of osmosis together with the head of
secondary levels I and II, Dr. Vito Susca.
38
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Lifelong learning One key aspect of corporate and working culture
at Wrth is lifelong learning, both for people just embarking on their
careers and for specialist employees and managers. Wrth is currently
training more than 1,300 up-and-coming professionals in Germany,
where there is a long tradition of dual training concepts. These in-
clude commercial, logistics and IT training programs, courses at the
Baden-Wrttemberg Cooperative State University leading to Bache-
lors degrees and technical and catering professions at the German
Group companies.
The learning process does not end when individuals complete their
initial training. Especially given the impact of the constantly changing
demands placed on todays working world, ongoing training is a key
success factor. Akademie Wrth Business School, for example, there-
fore offers Wrth Group employees and interested external parties
academic training programs for working professionals. These include
the Business Administration B.A. in cooperation with Hamburger
Fern- Hochschule (Distance Learning University). Admission is also
open to students without university entry qualifications. The three-
and- a-half-year course provides fundamental knowledge of business
administration and leads to the degree of Bachelor of Arts (B.A.). In
the latter part of their studies, students can choose to major in one of
a wide range of topics on offer. Students study using study letters and
e-learning modules. The self-study is supplemented by classroom ses-
sions at Akademie Wrth.
An MBA course was designed in collaboration with the University
of Louisville in Kentucky (USA). The one-year course is aimed at high
potentials who have at least three years professional experience
and wish to enhance their management expertise. As the MBA is
awarded by the College of Business at the University of Louisville,
half of the course is held on the campus in the USA. The College of
Business is accredited by the American Association to Advance
Collegiate Schools of Business (AACSB).
AKADEMIE WRTH
BUSINESS SCHOOL
The MBA class of 2013 cele-
brates the completion of their
course at the University of
Louis ville in the US. The tradi-
tional throwing of the Masters
caps forms a key part of the
graduation ceremony.
39
TRAINING Learning away
from the ofce desk: team
training sessions are a key
component of the training pro-
gram at Adolf Wrth GmbH
& Co. KG. They allow career
entrants not only to acquire
specialist knowledge, but also
to develop as individuals.
University promotion A separate foundation under the umbrella of
the Wrth Foundation has been dedicated to promoting Reinhold
Wrth University in Knzelsau since 2005. The campus, where
1,500 students are enrolled for Bachelors and Masters degrees is
one of three campuses belonging to Hochschule Heilbronn (Univer-
sity of Applied Sciences).
The Wrth Group contributed an endowment of EUR 10 million to the
foundation for the promotion of Reinhold Wrth University. The broad
range of promotional activities includes investments in additional
equipment for research purposes, start-up fnancing for courses and
scholarships for students.
Thanks to its activities, the foundation is helping to strengthen Knzelsau
as a university location and boost research and teaching in the region.
Reinhold Wrth University celebrated its 25th anniversary in 2013.
As part of the anniversary celebrations, Prof. Dr. h. c. mult. Reinhold
Wrth was awarded the title of honorary senator of Hochschule Heil-
bronn in recognition of his many years of support for the university.
Competence Center for Economic Education The Competence
Center for Economic Education, which forms part of the Wrth Foun-
dation, aims to ensure that economic issues are addressed more in
school education and that knowledge of economic processes and
entrepreneurial spirit is improved among pupils and teachers alike.
The centers main activities include the Wrth Education Prize for
forward-looking school projects in the field of economics and the
annual Management Symposium.
Since 2009, the Competence Center for Economic Education has
been offering the Business Practice Program for teachers at general
schools: the further training gives teachers an insight into basic busi-
ness administration principles and structures that they can then imple-
ment at their schools in measures and projects relating to economic
education.
Furthermore, a prize for the ten best pupils studying the elective busi-
ness and IT at secondary technical schools was awarded for the first
time in the summer of 2013.
40
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
9,985
9,745
GROUP MANAGEMENT REPORT
OF THE WRTH GROUP
percent). The weak demand from abroad and ongoing uncertainty
regarding economic policy and government debt in key export coun-
tries kept a muzzle on growth.
In the trades, the main sales market for the Wrth Group, the neg-
ative trend that started a year earlier continued. 2013 saw sales at
trades businesses slip by 0.8 percent, after already dropping by 2.0
percent in the previous year. In the metal and electrical industry,
another key sector for the Wrth Group, production rose by 0.2 per-
cent (2012: 0.1 percent). This means that the sector started to move
towards the forecasts for 2013, which assumed a slight increase to
the tune of 0.5 percent.
The German automotive industry stagnated again in 2013. The
number of vehicles produced rose slightly to around 5.5 million pas-
senger cars (2012: 5.4 million). The German mechanical engineer-
ing sector, on the other hand, was hit by production losses of 1.5
percent (2012: + 2.0 percent). A drop in exports to Asian growth mar-
kets played a key role in this trend. The construction sector showed
Economic environment
The Wrth Group was faced with a continued difcult economic
environment in 2013. Global economic growth only managed to pick
up minimal momentum year-on-year on average. The damper on eco-
nomic momentum stems largely from the fact that the consequences
of the fnancial crisis have yet to be fully overcome in many countries
and regions. In the second half of the year, however, the global econ-
omy picked up speed. All in all, global gross domestic product in-
creased by just 3.0 percent (2012: + 3.1 percent).
Global economy recovers in the second half
Ongoing recession in the euro zone
Growth slowdown in Germany
In Germany, the largest single market for the Wrth Group, the trend
towards slower economic development continued, with gross domes-
tic product up by only 0.4 percent. This means that growth was down
by 0.3 percentage points in a year-on-year comparison (2012: + 0.7
SALES
WRTH GROUP in millions of EUR
2,500
5,000
7,500
10,000
2006
7,748
2005
6,914
2004
6,203
2007
8,489
2008
8,816
2009
7,522
2010
8,633
2011
9,699
2012 2013
41
positive development in 2013, despite the long winter at the start of
the year, with sales up by 3.0 percent in 2013. This means that the
growth rate almost quadrupled as against 2012 (+ 0.8 percent). Con-
struction companies beneftted from considerable investments in resi-
dential construction, in particular.
The euro zone has gradually been throwing of the shackles of the
recession since the second half of 2013 thanks to the structural ad-
justments that have been made. The modest growth at the end of the
year, however, was not quite able to compensate for the renewed
drop in economic output over the year as a whole: gross domestic
product was down by 0.4 percent 2012: 0.4 percent). Especially in
the southern European countries that were hit particularly hard by the
sovereign debt crisis, the recession continued to linger: in Portugal,
gross domestic product fell by 1.4 percent (2012: 3.2 percent),
while GDP fell by 1.2 percent in Spain (2012: 1.4 percent) and
by 2.0 percent in Italy (2012: 2.1 percent). By contrast, economic
growth in France, Europes second largest economy, increased by
0.2 percent as in the previous year (2012: + 0.2 percent). Ireland
was unable to hold its slight upward trend steady: compared with
0.9 percent in 2012, growth in 2013 came in at only 0.1 percent.
Against the backdrop of an uncertain overall fscal policy environ-
ment, growth on the US economy in 2013 was down on the previ-
ous year: after GDP rose by 2.2 percent in 2012, economic output
in 2013 came in at only 1.9 percent. Growth slowed slightly in Latin
America as well. The regions GDP rose by 2.7 percent in 2013 com-
pared with 2.9 percent in 2012. In the markets of China and India,
which are strategically important for the Wrth Group, economic
growth was down slightly. Economic output in China grew by 7.7 per-
cent (2012: + 7.8 percent). In India, the pace of growth slowed from
4.5 percent in 2012 to 3.9 percent in 2013.
Falling commodities prices
Prices on the commodity markets dropped considerably in some
cases in 2013. In particular, the commodities that are of considerable
importance to the Wrth Group, namely steel, nickel, aluminum and
copper were cheaper in 2013 than they were one year previously. It
was possible to cut purchase prices.
Although steel was trading at a much lower price than a year earlier
in 2013 on average, it was subject to considerable fuctuation. Be-
tween the start and the middle of the year, the price fell continually to
Management reorganization
The Wrth Group streamlined its management structure efective
1 July 2013. Shorter decision-making processes and focused respon-
sibility will give the company more clout. The Board was cut from
seven members to four. Robert Friedmann remains the Chairman of
the Central Managing Board, with Peter Zrn still his deputy. Joachim
Kaltmaier will remain in charge of Finance. The new member of the
Board is Uwe Hohlfeld, who was appointed to assume responsibility
for strategic planning and controlling and has been a management
member of Adolf Wrth GmbH & Co. KG since 2003.
Business development
Southern European markets continue to put pressure on
business developments at the Wrth Group
Operating result up to EUR 445 million
63,571 employees worldwide
The Wrth Groups sales in fscal year 2013 were down year-on-year
to EUR 9.75 billion (2012: EUR 9.98 billion), which translates into a
drop of 2.4 percent. If we adjust the fgures to refect the solar activi-
ties, which were abandoned in 2012, the decline in sales comes in at
0.1 percent, as the solar sales amounted to around a quarter of a bil-
lion euros in 2012.
a low of USD 100 per metric ton and had then bounced back to USD
295 by the end of the year. On average, steel cost USD 195 per met-
ric ton in 2013.
The prices for the industrial metals nickel, copper and aluminum were
also well down in a year-on-year comparison at the end of 2013. On
average, the price of nickel dropped to USD 15,000 per metric ton
(2012: USD 17,520 per metric ton). The price of copper stood at USD
7,321 per metric ton as against USD 7,949 per metric ton in 2012.
One metric ton of aluminum was trading at an average of USD 1,841
(2012: USD 2,018 per metric ton).
Major price fuctuations afected the cost of a barrel of Brent crude
oil in 2013. The average price per barrel in 2013 was USD 105, also
down on the previous year (2012: USD 111).
42
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Whereas the companies in Germany saw their adjusted sales rise by
1.6 percent as against 2012, the adjusted sales abroad were down
by 1.4 percent on the prior year. This is due primarily to the ongoing
difcult economic situation on the southern European markets, which
are important for Wrth.
At EUR 445 million, the operating result of the global market leader
in selling assembly and fastening materials was up on the prior year
(2012: EUR 415 million). The excellent earnings power of individual
established companies, such as Adolf Wrth GmbH & Co. KG and
Wrth Finland, made a particular contribution to this operating result,
which was up by 7.2 percent year-on-year.
Despite stagnating sales, the Group invested heavily in the growth of
its various divisions, units and markets. At EUR 433 million, capital ex-
penditures were on a par with the level seen in recent years and are
the basis for the Wrth Groups future growth.
In response to the drop in sales, headcount in the individual divisions
and units was adjusted in the past fscal year. This resulted in a drop
to 63,571 employees worldwide, with most of the staf cuts being made
abroad, in line with sales development, with a focus on sales staf.
Sales by region
Germany remains most important single market
Most pronounced drop in sales in southern Europe
Focus remains on regional diversifcation
Varied overall economic conditions resulted in diferent sales trends
in the individual regions in 2013, with most regions hit by dwindling
sales. Southern Europe was hardest hit with a drop in sales stretch-
ing almost into the double digits. On these markets, we are still feel-
ing the impact of the economic crises in Spain, Portugal, Italy and
Greece. Nevertheless, our more than 400 companies in more than
80 countries give us the opportunity, thanks to our geographical di-
versifcation, to participate in regional growth markets and at least
partly compensate for stagnating/falling sales in individual coun-
tries. Depending on the maturity of the individual markets, the strate-
gic approaches to market penetration vary from region to region. In
fedgling markets, the focus is on developing the sales force. The es-
tablished entities concentrate on refning their sales channels through
a regional approach, customer-specifc segments and a policy of
seeking out potential. For seven years, we have also been working
intensively on setting up new sales branches to help broaden our cus-
tomer base and expand the services we ofer. In addition, we are fo-
cusing on expanding our e-commerce activities in order to accelerate
our transformation into a multi-channel sales company.
Germany
2013 2012 %
Sales in millions of EUR 4,403 4,447 1.0
Share % 45.2 44.5
Employees 19,415 19,605 1.0
Sales representatives 5,467 5,757 5.0
Germany is the largest and most important individual market for the
Wrth Group. 45.2 percent of consolidated sales were generated
on the domestic market. Since the drop in sales in Germany was less
pronounced than abroad, it was actually possible to slightly increase
Germanys share of total sales. Germany also occupies frst place as
regards headcount, with 19,415 employees.
The establishment of Adolf Wrth GmbH & Co. KG in 1945 was the
start of a success story, starting in post-war Germany, that continues
to this day. The parent company of the Wrth Group makes the big-
gest contribution to sales and earnings and is also the largest single
entity in the Group with more than 6,000 sales representatives and
in-house staf.
2013 was a challenging year for Adolf Wrth GmbH & Co. KG, too.
First of all, the commissioning of the distribution center in May 2013
signifcantly improved our logistics capabilities. The parent company
also invested considerable amounts in e-commerce to allow it to react
on the market even faster and with greater customer friendliness and
Sales of the Wrth Group
in millions of EUR 2013 2012 %
Wrth Line Germany 1,491 1,478 + 0.9
Allied Companies Germany 2,912 2,969 1.9
Wrth Group Germany 4,403 4,447 1.0
Wrth Group International 5,342 5,538 3.5
Wrth Group total 9,745 9,985 2.4
43
fexibility. Furthermore, 17 new branches were set up. All in all, Adolf
Wrth GmbH & Co. KG has more than 400 shops, bringing it even
closer to its customers. This ultimately resulted in new records being set
for sales and the operating result, highlighting the importance of the
Groups fagship.
Overall, Germany generated an operating result of EUR 226 million
(2012: EUR 210 million), making it the most proftable region.
In addition to Adolf Wrth GmbH & Co. KG, other entities in Ger-
many reported successful development in the 2013 fscal year. One
example is Arnold Umformtechnik GmbH & Co. KG, a leading man-
ufacturer of sophisticated connecting technology for the automotive
segment and other industrial sectors, which achieved above-average
sales growth and set a new record in the process: for the frst time,
more than EUR 100 million in sales were achieved in the space of one
fscal year. The companies in the Wrth Elektronik Group also contin-
ued on their success path, boosting their earnings considerably.
Although individual companies achieved outstanding performance,
growth in Germany still fell far short of our expectations overall. In the
second half of the year, we saw an increasing number of signs emerge
pointing to a revival in business, which were ultimately also refected
in sales growth and allow us to be confdent as far as this fscal year
is concerned.
Western Europe
2013 2012 %
Sales in millions of EUR 1,650 1,735 4.9
Share % 16.9 17.4
Employees 10,685 10,932 2.3
Sales representatives 5,610 5,890 4.8
Western Europe is the Groups second largest sales region after Ger-
many. It was the geographic point of departure for the international-
ization of the Wrth Group. In 1962, Reinhold Wrth set up Wrth
Nederland B.V., the frst company outside of Germany, laying one of
the foundation stones for the success of the Wrth Group.
Growth momentum in this region, which includes companies in coun-
tries like France, the UK, the Benelux states and Switzerland, tailed
of considerably compared with the prior year. On aggregate, sales
slid by 4.9 percent (2012: + 4.6 percent). There are a whole number
of reasons behind the unsatisfactory sales situation, but due to the ab-
solute volume of sales, the French companies have a major impact on
the region as a whole, as they generated around 40 percent of total
sales. Growth was also unsatisfactory in the UK, Belgium and Swit-
zerland, where sales fgures decreased. Some of the established en-
tities are still in a consolidation phase, and a realignment is required
to refect the changed market situation. The strategic focus of these
entities is on creating customer segments and thus on potential-based
marketing and distribution.
The Americas
2013 2012 %
Sales in millions of EUR 1,130 1,131 0.1
Share % 11.6 11.3
Employees 7,020 7,115 1.3
Sales representatives 3,772 3,916 3.7
The US economy continued to show stable development, continuing
on the upward trajectory plotted in recent years unperturbed. De-
mand among private households rose considerably, helping to revive
the construction sector even further. This allowed our wood compa-
nies in the US to achieve satisfactory results, with sales growth almost
in the double digits. It was a diferent story at the companies in the
Wrth Industrial Network (WINWORK
storage management
system, which ofers our customers storage and provision of various
consumables and supplies in line with their needs. Above and be-
yond this, the Wrth Groups sales branch network was further ex-
tended. Around 90 new branches were opened worldwide. In order
to forge ahead with our transformation into a multi-channel sales or-
ganization, EUR 60 million was invested in IT systems.
INVESTMENTS
WRTH GROUP in millions of EUR
150
300
450
2009
263
2010 2011 2012 2013
283
455
465
433
CASH FLOW FROM OPERATING ACTIVITIES
WRTH GROUP in millions of EUR
250
500
750
2009 2010 2011 2012 2013
800
216
540
618
599
61
Overall EUR 201 million, just under half of the investment volume, was
attributable to Germany, refecting to the continued high signifcance
of the home market for the Wrth Group.
In 2014, we plan to keep our investments on a similar scale to 2013.
Our investment obligations on the cut-of date for the annual fnancial
statements come in at EUR 14.5 million.
Thanks to our moves to optimize our investment controlling processes
using sophisticated recording and analysis tools in recent years, the
Central Managing Board was always in a position to react quickly
to changes in the overall environment. This is another reason why we
once again met our objective of fnancing investments from our cash
fow from operating activities in full in 2013. Our cash fow from oper-
ating activities came in at EUR 599 million (2012: EUR 618 million).
We consider this level of cash fow from operating activities to be
appropriate for us. The ratio of capital expenditures on property,
plant and equipment, fnancial investments and intangible assets to
cash fow from operating activities was 72.3 percent and was there-
fore down on the prior-year level (2012: 75.2 percent).
Purchasing
At the end of 2012, we had forecasted substantial growth for fscal
year 2013, which failed to materialize. This gave rise to considerable
uncertainty and a tense wait- and-see strategy across the globe.
At the end of 2013, experts were only able to announce much lower
growth for most economies compared with the prior year.
This global wait-and-see attitude was something that purchasing was
able to beneft from. A downward trend in the prices of some com-
modities, a relatively strong euro and only moderate capacity utiliza-
tion levels at suppliers worldwide due to the economic situation gave
purchasing staf at the Wrth Group good arguments for price nego-
tiations. The systematic use of the opportunities that arose allowed
purchasing to achieve corresponding price cuts on the procurement
markets, which ultimately had a positive impact on competitiveness
and earnings.
Looking ahead to 2014, economic experts predict slight economic
growth worldwide, with most economic indicators also pointing to-
wards an upswing. If these positive forecasts materialize, this will ramp
up the pressure on purchasing at the Wrth Group again in 2014.
Economic growth will give rise to increased production capacity utili-
zation levels and higher demand for commodities. Both have a direct
impact on future negotiations with suppliers. Consequently, purchas-
ing expects these negotiations to prove more difcult in 2014. The
Groups purchases will be persistent in their response to possible price
demands in order to achieve the best possible prices. What is more,
the inventories of the individual Wrth Group companies must be kept
as fexible as possible in order to ensure that they can be adapted to
suit the prevailing sales and market situation.
Inventories and receivables
Inventories and receivables are a focal point of Wrth as a company
that largely operates in the trade sector. Both of these items allow li-
quidity and the amount of capital tied up within the Group to be man-
aged at relatively short notice. The key is always to strike the right
balance between ensuring high levels of customer satisfaction on the
one hand by providing an optimum delivery service and adequate
payment terms and optimizing liquidity and minimizing default
rates on the other. All in all, the drop in sales in fscal year 2013 re-
sulted in a drop in receivables. Inventories increased slightly.
For years, sophisticated controlling systems, which enable rapid re-
sponses in the event of any indications of negative developments,
and optimum collaboration between sales and accounts receivable
management have enabled the Wrth Group to achieve a low level
of receivables in relation to sales. The corresponding key fgure, col-
lection days (based on a 12-month calculation), increased slightly in
comparison to the prior year to 52.7 days (2012: 52.3). In view of
the difcult economic conditions, particularly in Europe, we rate this
only slight deterioration in the key fgure as positive. This applies all
the more so given that the entities outside of Germany were able to
keep the number of collection days virtually at the prior-year level.
The German companies traditionally report a lower level. Following
42.2 collection days at the end of 2012, they achieved a fgure of
43.1 days, slightly up on the prior-year level, also due to longer pay-
ment terms for a larger number of customers. All in all, receivables
fell, in line with the decline in sales, by 1.9 percent to EUR 1,210 mil-
lion (2012: EUR 1,233 million).
We will continue to optimize accounts receivable by means of efec-
tive cooperation between sales and accounts receivable manage-
ment, as well as through refnements to the analytic tools. We see the
payment patterns of debtor payments in southern Europe, China and
62
BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
India, which on the one hand slows growth and on the other reduces
earnings, due to an increasing need to recognize impairment losses,
as critical.
At 0.8 percent, defaulting receivables and expenses for additions
to the allowance for impairment as a percentage of sales were up
slightly (2012: 0.6 percent). This is largely due to the continuing efects
of the euro crisis.
We aim not just to satisfy our customers, but to inspire them. As a re-
sult, the Wrth Group is continually working on keeping its delivery
service level close to the one hundred percent mark. To achieve this
we are prepared to stock individual products, even where this runs
contrary to all our business optimization eforts, in order to be able to
deliver the goods to the customer one day after the order is placed at
the latest. In 2013, we achieved this in 98 out of 100 cases.
The inventories of the Wrth Group rose slightly in 2013 to EUR
1,310 million (2012: EUR 1,300 million). The rise in inventories runs
counter to sales development because of the companys eforts to
forge ahead with the expansion of the branch network. 2013 saw
87 new pick-up shops being opened worldwide. What is more, there
were long delivery periods for some product groups, prompting us to
accumulate higher inventory levels from a service perspective. This
ultimately meant that stock turnover calculated on a 12-month basis
fell slightly from 5.3 times at the end of 2012 to 5.2 times.
Financing
The equity of the Wrth Group climbed by EUR 195 million to EUR 3.4
billion in fscal year 2013. This gives the Group a very good equity
ratio for a trading company of 42.6 percent (2012: 41.9 percent).
A comfortable equity ratio has been the basis of our healthy fnancing
for years now, and boosts customers and suppliers trust in the Wrth
Group. This positive equity ratio development is due to the typical
family business approach of reinvesting a large portion of profts in
the company. This sound fnancing, coupled with the long-term bond
portfolio, enables the Wrth Group to continue to grow relatively in-
dependently of the short and medium-term development of the capital
markets. Total assets grew by EUR 329 million to EUR 7,978 million
(2012: EUR 7,649 million). This is mainly due to the new cash gener-
ated from a bond and investments in property, plant and equipment.
Unlike in previous years, fnancial services activities only made a small
contribution to the growth in total assets in 2013. Refnancing in the
area of banking was mainly performed through fnancial intermediar-
ies and refnancing programs of the European Central Bank.
The fnancial situation of the Wrth Group was again appraised by
the leading rating agency Standard & Poors in 2013. The Wrth
Group has undergone this annual rating process for almost 20 years
now. Standard & Poors again rated the Wrth Group A/outlook sta-
ble. The rating of the outlook as stable refects the confdence that
business and the fnancial KPIs will continue to develop successfully.
The opportunities and potential of the Wrth Group are viewed in a
positive light. Our long history of good ratings not only documents
the positive credit rating; at the same time, it is proof of the continuous
and successful development of our corporate group and the stability
of our business model.
The good credit rating allows Wrth Finance International B.V. to
obtain favorable fnancing conditions on the international fnancial
markets. In May 2013, the Wrth Group made use of this, and of the
attractive conditions on the capital markets, and successfully placed
EQUITY
WRTH GROUP in millions of EUR
1,000
2,000
3,000
2009
2,600
2010 2011 2012 2013
2,867
3,042
3,204
3,399
63
a second benchmark bond worth EUR 500 million. This bond, which
has a maturity of seven years, has an interest coupon of 1.75 percent
p.a. and is secured by an unconditional, irrevocable guarantee issued
by Adolf Wrth GmbH & Co. KG, Knzelsau, Germany. The trans-
action generated keen interest among investors and was oversub-
scribed eight times within the space of only two hours, with subscrip-
tion ofers worth more than four billion euros. The issue served, by
way of example, to refnance the bonds and promissory note loans
worth a total of EUR 525 million that reached, or will reach, ma-
turity in 2013 and 2014 and will boost the Wrth Groups long-term
fnancing and liquidity base, laying a foundation for future growth
opportunities in sales and investments in logistics and infrastructure.
At the end of the fscal year 2013, the Wrth Group thus has four
bonds issued on the capital market and one private placement. All
covenants in this context have been complied with. Between EUR 170
million and EUR 300 million will fall due in the period between 2014
and 2015, EUR 500 million in 2018 and 2020, and some EUR 150
million in 2021. The maturity profle is thus well balanced. For further
information on maturity and interest structure, we refer to the com-
ments in the consolidated fnancial statements: H. Notes to the con-
solidated statement of fnancial position, [24] Financial liabilities.
As of 31 December 2013, the Wrth Group has cash and cash equiv-
alents of EUR 749 million (2012: EUR 572 million). In addition, the
Group has a fxed line of credit of EUR 200 million, which remains un-
drawn to date, provided by a syndicate of banks until February 2018.
Start-ups and acquisitions
The Wrth Group establishes subsidiaries to spread successful busi-
ness models and sales concepts in new markets. This strategy is
supported by the fact that the organization of the Wrth Group is
decentralized. In recent years, this has increasingly applied to our es-
tablished and proftable Allied Companies. In 2013, however, signs
pointing towards difcult sales development in many business areas
meant that the focus was on the stabilization and consolidation of the
individual areas. The only company that was set up was Grass Iberia
S.A. The company will strengthen our sales activities on the Spanish
and Portuguese markets in the fttings business after companies were
set up in Australia, the UK and Italy in 2011 and 2012.
The regional expansion of the Wrth Line companies has been more
or less fully exploited. The Wrth direct sales companies already
deliver assembly and fastening materials to customers in more than
80 countries. Within the Wrth Line, the focus is therefore on growth
by expanding the customer base and establishing additional divi-
sions and branches in the respective countries.
In addition to setting up new companies, the Wrth Groups growth
strategy also involves using targeted acquisitions to add companies
to the Group where they prove a good match, allowing the Group to
obtain further market shares. Last year, we exploited the favorable
conditions for us on the M&A market and bought the chemicals com-
pany Chemofast Anchoring GmbH, based in Willich, Germany, with
efect from 1 January 2013. At the end of 2013, the company had al-
most 80 employees and generated sales of more than EUR 20 million.
Chemofast develops and produces chemical mortars, known as chem-
ical anchors, and markets these very successfully to its private-label
customers in the construction and retail industries. The acquisition of
Chemofast supports the Groups strategy in the growing chemicals
market and complements our activities in the area of anchors.
On 22 February 2013, Wrth signed the purchase agreement for the
takeover of an 100 percent stake in Ares Oy Nikotips. The company,
which has its registered ofce in Espoo, Finland, is involved in the
wholesale business for rubber, plastic and polyurethane products,
mainly hydraulic and technical hoses and accessories.
On 1 September 2013, the companies YOUR OWN BRAND GmbH,
based in Neutraubling near Regensburg, YOUR OWN BRAND UK Ltd.,
based in Cheddar, UK, Your Own Brand S.R.L, based in Milan, Italy,
and Kemacos Full Filling Service GmbH, based in Kematen, Austria,
were acquired. YOUR OWN BRAND specializes in the distribution of
own-brand cosmetics products to drugstores, discounters and food re-
tailers. The company Kemacos Full Filling Service GmbH largely sup-
plies brand name companies with its own cosmetics production based
on GMP standards (good manufacturing practice). The purchase of
these companies means that we have production facilities that work
based on GMP standards within the Group, resulting in correspond-
ing investment savings. The companies are an ideal match for comple-
menting our current cosmetics manufacturing activities.
On 23 December 2013, the new company SVH Handels- GmbH took
over some of the assets of SVH24.de GmbH. SVH24.de GmbH was
a trading company focusing on tools that specialized in e-commerce.
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BULLETIN THE BOARDS COMMITMENT GROUP MANAGEMENT REPORT CONSOLIDATED FINANCIAL STATEMENTS
Research and development
Research and development plays a key role in the Wrth Group. We
use successful distribution, excellent logistics and cost-focused action
to secure our competitive standing. At the same time, we create market
advantages by ofering needs-based and, most importantly, innovative
products and services.
In fscal year 2013, for example, Adolf Wrth GmbH & Co. KG gen-
erated one-ffth of its sales from products that are less than three years
old. This is a very high proportion for a company that specializes in
sales. The rate of innovation is high across the Group as a whole, too:
the Group currently has 694 active patents, 24 utility models, 343
designs and 5,424 active trademarks. This means that, compared with
the prior year, 196 brands and 47 designs were added in 2013.
Wrth Line: To each customer their own Wrth
Every customer is diferent. This is why every Wrth customer bene-
fts from an advisory and supply concept that is tailored to suit their
needs. Our distribution center in Knzelsau, which was opened in
2013, creates additional capacity of more than 60,000 order items
a day. This allows Wrth to react particularly quickly to customer
wishes. As well as incorporating state-of-the-art technology and ergo-
nomically designed workstations throughout, the construction plans
for the new distribution center also took environmentally-friendly as-
pects into account.
Wrth Industrie: W-KLT
and W- KLT
GS scafold anchoring
product is currently the only product on the market that has been
awarded a test certifcate from the construction industry trade associ-
ation BG Bau Berufsgenossenschaft der Bauwirtschaft. It stands out,
in particular, due to its load: the highest load that can be achieved in
concrete at the moment. Together with the SymCon
stands
for a symmetrical conical thread that helps ensure that the load is
spread evenly across the entire expansion area of the frame dowel. At
the same time, the plastic in the dowel is optimally compressed when
it is screwed in. In addition to its high-performance technical features,
users can also rely on the highest-quality safety testing thanks to the
European technical approval of this dowel system.
Two-time test winner at TV SD
In-house product development, stringent test criteria and ongoing
testing the companys own quality assurance labs ensure the quality
of Wrths products. In order to have its compliance with national
and international norms confrmed, Wrth works with external in-
spection bodies such as TV SD (Southern German Association for
Technical Inspection).
TV SD tested the screwdriver range of 15 premium manufacturers
in a direct comparison. The 3K screwdriver PH2, an in-house Wrth
development, took frst place. Seven product features were defned:
fracture torque, traction factor, torque that can be achieved by hand,
ergonomics, weight, durability and fracture rotation angle. The 3K
screwdriver is produced in ZEBRA
quality within the Wrth Group in
Germany. ZEBRA
Research and development work has already been extremely im-
portant to the Wrth Elektronik Group. These activities focus on new
felds of technology, such as printed electronics. With novel printing
procedures for functional materials, the Wrth Elektronik Group is
pursuing new solution approaches for the development of miniatur-
ized electronic components. The ORFUS (organic multi-functional
sensor systems) project developed printable magnet-sensitive pastes.
Thanks to modern printing technology and progressive PCB tech-
nology, this allows miniaturized ferrite core-based toroidal cores to
be built. These sensor coins can be used, for example, as inductive
magnetic feld sensors in control technology applications. In partic-
ular, the innovative SKEDD
product in the intelligent systems area
ofers massive economic potential and resulted in the creation of the
SKEDD
proft center. SKEDD