2014 ANNUAL REPORT FREUDENBERg gROUP

Transcription

2014 Annual Report
Freudenberg Group
Freudenberg is a globally active technology company that develops innovative, sophisticated and
tailor-made solutions in partnership with its customers. The Group’s products are part of everyday life
all over the world – usually invisible, but always indispensable, they have a valuable role to play in
more than 30 markets and thousands of applications.
The quest for excellence, creativity, diversity, financial solidity and a long-term orientation form the
cornerstones of the Freudenberg Group. Our company’s success is founded on innovation. The
internal Freudenberg Innovation Award was presented for the first time in 2014 and further highlights
the great importance of innovation, honoring projects that are already proving their worth in the market.
This Annual Report presents the four finalists and the awardee of the Freudenberg Innovation Award.
Highlights
External reporting
Internal reporting
At-equity
2012*
At-equity
2013
At-equity
2014
Pro-rata
2012
Pro-rata
2013
Pro-rata
2014
Germany
1,210
1,059
1,087
1,494
1,885
1,975
EU (excluding Germany)
1,562
1,553
1,657
1,621
1,570
1,681
311
327
334
315
327
336
1,291
1,267
1,383
1,342
1,274
1,390
South/Central America
343
306
296
351
306
296
Asia
824
1,002
1,089
1,057
1,129
1,224
Africa/Australia
140
132
136
142
132
137
5,681
5,646
5,982
6,322
6,623
7,039
Consolidated profit
438
399
478
433
402
478
Cash flow from operating
activities
445
516
618
532
614
712
Cash flow from investing activities
-186
-520
-339
-348
-571
-407
Depreciation and amortization
238
238
256
274
280
305
Balance sheet total
5,677
5,873
6,667
6,060
6,284
7,113
Equity
2,668
2,775
3,211
2,818
2,775
3,224
Personnel expenses
1,719
1,728
1,812
1,820
1,916
2,027
Workforce (as at Dec. 31)
30,786
33,245
34,030
37,453
39,897
40,456
Workforce (annual average)
32,769
33,293
34,094
37,683
39,979
40,614
FREUDENBERG GROUP
Sales [€ million]
Other European countries
North America
Total sales
*Figures adjusted due to the application of IFRS 11 prior to the mandatory application date.
Whilst joint ventures must be consolidated using the equity method for external reporting, for internal reporting purposes their consolidation
is based on the pro-rata method as a tool for managing Group operations.
WORLDWIDE LOCATIONS
The Freudenberg Group and its 40,000 employees are active in some 60 countries.
CONTENTS
2
3
4
5
6
8
12
18
22
25
25
27
30
32
36
42
82
83
92
Company Boards
Supervisory Board
Board of Management
Executive Council
Management of the Business Groups
Report of the Supervisory Board
Foreword of the Board of Management
Group Management Report of the Freudenberg Group
Fundamental Information about the Group
Business Model of the Group
Research and Development
Report on Economic Conditions
Macroeconomic Environment
Business Development and Position of the Group
Earnings Position of the Group
Financial Position of the Group
Assets, Equity and Liabilities of the Group
Human Resources
Corporate Responsibility
Review of Operations by Business Area
Report on Post-Balance Sheet Date Events
Report on Risks and Opportunities
Report on Expected Developments
99
100
101
151
Financial Report - Consolidated Financial Statements
Freudenberg SE
Consolidated Statement of Financial Position
Consolidated Statement of Profit or Loss
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Shareholdings of the Freudenberg Group
163
Audit opinion
96
97
98
COMPANY BOARDS
SUPERVISORY BOARD
From left: Schücking, Schildhauer, Kammüller, Freudenberg-Beetz, Towfigh, Koehler, Pott, Wentzler, Freudenberg, Kuhlich, Kurz and Thielen
Martin Wentzler, Großhesselohe
Chairman
Attorney
Maeva Kuhlich, Chichilianne, France
Project Manager in Supply Chain Management
at Becton Dickinson
Prof. Dr. Dieter Kurz, Lindau
Deputy Chairman
Chairman of the Shareholder Council of the
Carl Zeiss Foundation
Dr. Richard Pott, Leverkusen
Former member of the Board of Management of
Bayer AG
Martin Freudenberg, Heidelberg
Managing Director of Jumag Dampferzeuger GmbH
Dr. Maria Freudenberg-Beetz, Weinheim
Biologist
Dr. Mathias Kammüller, Ditzingen
Managing Director of TRUMPF GmbH + Co. KG
Robert J. Koehler, Wiesbaden
Chairman of the Supervisory Board of
Benteler International AG
Walter Schildhauer, Stuttgart
Managing Partner of speedwave GmbH
Dr. Christoph Schücking, Frankfurt am Main
Attorney and Notary Public
Mathias Thielen, Zurich, Switzerland
Managing Director of Credit Suisse AG
PD Dr. Emanuel V. Towfigh, Bonn
Attorney
as at December 31, 2014
2
BOARD OF MANAGEMENT
From left: Krauch, Sohi and Krieger
Dr. Mohsen Sohi, Frankfurt am Main
Chief Executive Officer
Dr. Tilman Krauch, Heidelberg
Member of the Board
Dr. Ralf Krieger, St. Leon-Rot
Member of the Board, CFO
Christoph Mosmann, Mannheim
Member of the Board
(until December 31, 2014)
3
Executive Council
MEMBERS
BUSINESS GROUPS
Claus Möhlenkamp (CEO)
Freudenberg Sealing Technologies
Bruce R. Olson (CEO)
Freudenberg Nonwovens
Dr. Klaus Peter Meier (CEO)
Freudenberg Home and
Cleaning Solutions
Hanno D. Wentzler (CEO)
Freudenberg Chemical Specialities
and the Board of Management
Membership of the four CEOs in the Executive Council lends greater weight to the perspectives of the Business Groups
with regard to overarching issues.
4
MANAGEMENT OF THE BUSINESS GROUPS
MANAGEMENT
BUSINESS GROUPS
Claus Möhlenkamp (CEO and Member of the Executive Council), Dr. Arman Barimani (CTO), Ludger Neuwinger-Heimes (CFO),
Dieter Schäfer (COO)
Richard Schmidt (CEO and President), Craig Barnhart (CFO)
Freudenberg Oil & Gas Technologies
Dr. Stefan Sacré (CEO), Jochen Strasser (CFO), Michael Stomberg (COO)
EagleBurgmann
Dr. Jörg Schneewind (CEO and President), Michael A. Hawkins (CFO), Dr. Max Gisbert Kley (President Europe and Global Business Development),
Mitch Moeller (CEO of MedVenture)
Helix Medical
Hans-Jürgen Goslar (CEO), Norbert Schebesta (CFO), Lennart Johansson (CTO), Jim Law (CTO) TrelleborgVibracoustic
Bruce R. Olson (CEO and Member of the Executive Council), Dr. Frank Heislitz (CTO), Dr. René Wollert (CFO) Freudenberg Nonwovens
Richard Shaw (CEO), Dr. Riccardo Forni (CFO) Freudenberg Politex Nonwovens
Dr. Andreas Kreuter (CEO), Thomas Herr (CFO), Dr. Jörg Sievert (COO)
Freudenberg Filtration Technologies
Dr. Klaus Peter Meier (CEO and Member of the Executive Council), Arndt Miersch (CTO, until December 31, 2014), Frank Reuther (CFO) Freudenberg Home and Cleaning Solutions
Hanno D. Wentzler (CEO and Member of the Executive Council), Dr. Jörg Matthias Großmann (CFO)
Horst Reichardt (CEO), Dr. Sebastian Weiss (CFO)
Freudenberg IT
Dr. Manfred Egner (CEO), Christoph Neumann (CFO), Christophe Luciani (CSO)
enmech
5
REPORT OF THE SUPERVISORY BOARD
In 2014, the Board of Management and the Supervisory Board held regular and detailed discussions on the progress
of the Group and major individual business transactions on the basis of oral and written reports. Business policy was
agreed in consultation between the two bodies and updated where necessary in joint deliberations. In addition,
the Chairman of the Supervisory Board discussed current business developments with the members of the Board of
Management on a regular basis and in a spirit of partnership.
analysis of markets, sales and earnings development, liquidity status and the risk situation of the Freudenberg Group.
The agenda also included strategy issues and major
special projects.
At each of these meetings, the Supervisory Board also
consulted on ongoing key projects in the Group, reviewing
factors of relevance to the Group‘s success and adjusting
them to changed conditions. Of particular significance for
the Supervisory Board were the organizational realignment
of the Freudenberg Group, more efficient administrative
processes, the new positioning of the Freudenberg global
brand, the global talent management process, and the two
development programs for top management.
Martin Wentzler (Chairman)
Dr. Wolfram Freudenberg stepped down from his post as
Chairman of the Supervisory Board at the middle of the
year having reached retirement age. He was a member
of the Board of Partners for almost 40 years. He became
Chairman in 2005, and has since driven forward the
strategic development of the company – above all through
the establishment of the holding company Freudenberg
Societas Europaea (hereinafter: Freudenberg SE). He also
supported the systematic development of the company’s
portfolio. The company and the Supervisory Board
express their great respect for the achievements of
Dr. Wolfram Freudenberg and their gratitude for his
dedicated and successful service to the company. The
changeover and meticulously prepared transition have
safeguarded continuity and responsible cooperation between the Supervisory Board and the Board of Management.Ms. Maeva Kuhlich joined the Supervisory Board
in July 2014.
Five meetings of the Supervisory Board were held in the
year under review. Each meeting addressed a detailed
6
In addition, the Supervisory Board also consulted on
several acquisitions such as the takeover of the companies which operate the Hänsel brand interlinings business
from Hänsel Textil GmbH, Iserlohn, Germany, and the
acquisition of Tobul Accumulator Incorporated, Bamberg,
USA, and their integration in the Freudenberg Group. The
Supervisory Board furthermore consulted on developments in the participations in joint ventures and associated
companies such as NOK Corporation and Japan Vilene
Company Ltd., both registered in Tokyo, Japan, and
TrelleborgVibracoustic GmbH, Darmstadt, Germany. Other
issues included the execution of the strategy process
2015 - 2017 and the revision of the rules of procedure for
the Board of Management and the Supervisory Board.
The Audit Committee met five times in the year under
review. Matters dealt with by the Audit Committee
included the findings of the internal audit process. Priority
areas were the Group risk management system, the key
provisions of the German Corporate Governance Code,
and the new compliance architecture.
Key issues addressed by the Audit Committee in the 2014
financial year also included the preparation of Supervisory Board resolutions concerning the annual financial
statements and the dependent company report as well as
the consolidated financial statements of the Freudenberg
Group. Furthermore, the Audit Committee supervised the
required independence of the auditor and prepared the
Supervisory Board recommendation to the General Meeting on the engagement of the auditor and commissioning
of the audit for the 2014 financial year.
The Audit Committee also consulted on further issues such
as provisions – in particular provisions for pensions –, atequity measurement of participations, and legal risks. The
committee in addition reviewed and discussed the report
of the Ombuds Office, the strictly confidential point of contact for employees wishing to report breaches of laws and
regulations or infringements of Freudenberg values.
The Personnel Committee met five times in 2014. Dr.
Richard Pott became a new member of the committee
effective December 2014. Consultations of the Personnel
Committee focused on changes in the Board of Management: Dr. Tilman Krauch is a new member of the Board
of Management. He joined the Freudenberg Group on
October 1, 2014. The competent bodies complied with the
request of Mr. Christoph Mosmann to be released from his
responsibilities as a member of the Board of Management.
Mr. Christoph Mosmann stepped down from the Board
of Management effective December 31, 2014. Both the
Supervisory Board and the Board of Management would
like to thank Mr. Christoph Mosmann for almost 20 years
of service to the Freudenberg Group. In particular, as a
long-standing and highly-respected senior executive, he
helped shape the development and influence the direction
of the sealing technology business in particular for many
years.
The Personnel Committee also consulted on leadership
development, improving diversity among senior executives,
the talent management process, succession planning in
key bodies of the Freudenberg Group, and remuneration
systems.
The consolidated financial statements and the management
report for 2014 as well as the dependent company report
for Freudenberg SE were audited by Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft, Mannheim, Germany,
and were approved without reservation. Following
intensive consultation with the auditors on all relevant
findings, the Supervisory Board approved the consolidated
financial statements and the management report and the
annual financial statements of Freudenberg SE and, following examination, concurred with the auditor‘s findings.
The Supervisory Board examined the report on relations
with affiliated companies (dependent company report)
and approved the report together with the auditor‘s conclusions. Following final review, the Supervisory Board has
no reservations in respect of the closing statement by the
Board of Management on the dependent company report.
The Supervisory Board expresses its thanks to all employees,
the Business Group managing bodies and the Board of
Management. Their enormous personal commitment, their
ideas and their outstanding professionalism have made an
important contribution to the success of the Group.
Weinheim, March 26, 2015
For the Supervisory Board
Martin Wentzler
Chairman
7
FOREWORD OF THE BOARD OF MANAGEMENT
2014 was a very good year for the Freudenberg Group. Thanks to the enormous commitment and excellent performance of our more than 40,000 employees worldwide, we not only achieved profitable and sustainable growth, but
also progressed well with the strategic evolution of our company. We made further increases in productivity, continued to strengthen our innovation capabilities, improved the transparency and efficiency of our organization, and
further expanded both our global presence and our broadly-diversified product portfolio.
With an equity ratio of 48.2 percent (previous year:
47.3 percent), Freudenberg further strengthened its
very good, comfortable equity base. Liquid funds at
year-end amounted to €917.7 million (previous year:
€672.9 million).
Dr. Mohsen Sohi (CEO)
Under the IFRS financial reporting rules, joint ventures must
be consolidated using the equity method.
According to this method, sales in 2014 amounted to
€5,982.3 million (previous year: €5,646.1 million),
€336.2 million or 6.0 percent higher than the previous
year. Adjusted for exchange rate effects and the effects
of acquisitions, this represents an organic growth of
6.1 percent.
Profit before income taxes amounted to €625.1 million
(previous year: €493.3 million). This improvement is
above all attributable to the success of our innovative
products on the market, a high degree of customer
orientation and the expansion of business in attractive
growth markets as well as improved production processes. Free cash flow amounted to €279.1 million (previous year: €-3.8 million).
8
As a values-oriented company, occupational health,
safety and environmental protection, and social responsibility are firmly anchored in our corporate culture. The
safety of our employees at the workplace has top priority,
and we also improved our performance in this field in
2014. Our LDI rate (accidents per 1,000 employees)
fell from 3.4 in 2013 to 2.7. In terms of the standard for
manufacturing companies we have therefore achieved
first-class occupational safety.
There were leadership changes at Freudenberg during
the year under review: Dr. Wolfram Freudenberg handed
over the reins as Chairman of the Supervisory Board
to Martin Wentzler, thus safeguarding continuity and
responsible cooperation. Together, we will make the right
decisions for the future.
We would like to thank Dr. Wolfram Freudenberg for
almost forty years of commitment as a Member of the
Board of Partners, nine of which were spent as its Chairman. During this time, his entrepreneurial vision played a
key role in shaping the strategic orientation of the Group,
forging close ties between the company and the family,
and thus securing a stable foundation for the future.
Dr. Tilman Krauch joined the Board of Management team
in October 2014. He brings with him some two decades
of extensive experience working for an internationally
successful company.
In its internal reporting, Freudenberg applies the pro-rata consolidation method for joint ventures as a tool for
managing operating activities. For the fifth year in succession we reported record figures in 2014 on the basis of the
pro-rata consolidation. Sales ran at €7,039.1 million (previous year: €6,622.5 million), a year-on-year increase of
6.3 percent. Consolidated profit totaled €478.3 million and is chiefly attributable to the market success of our
innovative products and to higher efficiency. All Business Areas improved year-on-year.
Christoph Mosmann left the company at his own request
at the end of the year. We would like to thank him for
almost 20 years of service to the Freudenberg Group. As
a long-standing senior executive, he helped shape the
development and the direction of the sealing technology
business for many years.
The Board of Management is supported by a new body
called the Executive Council. The four members of the
Executive Council who come from the Business Groups –
Dr. Klaus Peter Meier (Freudenberg Home and Cleaning
Solutions), Claus Möhlenkamp (Freudenberg Sealing
Technologies), Bruce R. Olson (Freudenberg Nonwovens), and Hanno D. Wentzler (Freudenberg Chemical
Specialities) – lend greater weight to the perspectives of
the Business Groups with regard to overarching issues.
2014 was a successful year in very many respects over and
above our financial performance. We initiated an ambitious
program of strategic projects and realigned our organizational structure to suit the future demands of the market.
The Business Groups implemented the approved
Fokus 2.0 organizational changes and several projects
stemming from these changes:
Freudenberg Schwab Vibration Control and Dichtomatik as
well as the NOK-Freudenberg Group China joint venture
began operating under the roof of Freudenberg Sealing
Technologies at the beginning of the year under review.
Their combined strengths can cover market segments more
efficiently and they can bundle administrative tasks.
Freudenberg Performance Materials began operating in
January 2015. Combining Freudenberg Nonwovens and
Freudenberg Politex Nonwovens brings many advantages. The extended material expertise, the global
positioning and leveraging economies of scale are just a
few of the benefits of this new united path.
We repositioned the Freudenberg Real Estate Management Division as a new Corporate Function called
Freudenberg Real Estate responsible for managing the
Freudenberg Group‘s real estate worldwide.
The most important foundation of our corporate success
is innovation. Consequently, the former Freudenberg
New Technologies Business Group has been repositioned as a Corporate Function, and is thus established
as an overarching innovation driver. In addition to this
organizational realignment, we invested more than
ever before – €270.3 million – in innovation during
the year under review. Our research and development
expenditure rose by almost €100 million or 58 percent
between 2009 and 2014 and we have further strengthened Freudenberg‘s innovation capabilities. The aim of
all activities is to increase the share of sales accounted
for by new products still further.
The excellent achievements of the Innovation Award
which made its debut in the year under review are presented on the photo pages.
The goal of Freudenberg Business Services KG,
Weinheim, Germany, a new company which began
operating in the year under review, is to achieve economies of scale. The first projects indicate that the bundled
procurement of non-production-related goods brings
significant benefits for the relevant Business Groups and
the Group as a whole.
9
These activities will be successively expanding over the
coming years to leverage greater benefits from the size of
our Group.
this acquisition, Freudenberg can offer global customers
additional future-oriented filtration solutions for pollutionfree air.
With this multi-year project to improve administrative processes we will make Freudenberg even more efficient and
deliver on our promise to achieve leaner administration
and greater innovation.
Furthermore, Freudenberg Nonwovens acquired Polymer
Health Technology, Ebbw Vale, UK, a leading specialist
of polyurethane foams for advanced wound care in
January 2015, thus further expanding our activities in the
medical technology sector.
We made further additions to our portfolio.
In January 2014, Freudenberg Home and Cleaning Solutions acquired the Marigold household gloves business
from Comasec SAS, Gennevilliers, France, a company
of the Dutch Ansell Group. The acquisition brought us the
global trademark rights for the Marigold brand as well
as consumer business in the UK, Ireland, Italy, the
Netherlands, Hong Kong and Japan.
Freudenberg Sealing Technologies acquired Tobul
Accumulator Incorporated, Bamberg, USA, in July 2014.
With the acquisition, we are strengthening established
accumulator business in various markets such as energy/
oil & gas, mining and fluid technology in North and South
America.
In August, Freudenberg Nonwovens acquired the companies which operate the Hänsel brand interlinings business
from Hänsel Textil GmbH, Iserlohn, Germany. This transaction brings us the know-how and innovative technology
we need to expand our offering in the knit products
segment in future.
Freudenberg Filtration Technologies acquired the industrial activated carbon corrosion protection business of the
American company MeadWestvaco Corporation. With
10
Apart from the organizational changes and the portfolio expansion we also worked on other key projects in
2014.
Excellent talent management helps us meet our ambitious
targets with the right people. We successfully launched
our two flagship programs for leadership development.
The Strategic Leadership Program and Business Leadership Program not only encourage personal leadership
competence, but also create a common understanding
of how to implement central processes such as strategic
and operational planning, strategic human resources,
and talent management.
We realigned our risk management as well as optimizing our compliance architecture to improve our corporate governance and help us to minimize risks.
During the year under review, we continued our work on
redesigning the Freudenberg global brand and defined
a new brand architecture. We will present this repositioning at DIALOG 2015, our global senior management meeting to be held in Detroit, USA, in July 2015.
Preparations for this and other strategic topics also
began in the year under review.
We will continue working hard on all of these key
projects in the current financial year and will also launch
new initiatives with regard to sustainability, non-financial
key performance indicators and social commitment.
All in all, we can be proud of our progress in the year
under review – leveraging greater Group potential,
becoming more efficient, and driving excellence in all
what we do.
expect year-on-year sales growth of between 2 and 4
percent for the Freudenberg Group in the 2015 financial
year accompanied by an operating result at the prior-year
level. All Business Groups are likely to contribute to this
performance. On the basis of this forecast, we expect a
slight decline in the return on sales.
Overall, we are confident we will be able to improve the
excellence of our Group still further in the current financial
year.
Outlook:
Thanks:
Overall, we are cautiously optimistic about the global
macroeconomic environment for the 2015 financial year.
We are aware that economic conditions can change
very rapidly. The difficult economic situation in South
America, Russia and southern Europe is unlikely to
change significantly in the coming years – and could
even deteriorate. We expect the oil and gas industry will
come up against strong opposition.
The impact on Freudenberg of the present exchange rate
effects caused by the weak euro will be mixed. While a
stronger dollar will, for example, have a positive impact
on our sales development, we anticipate neutral to
negative effects on operating result. That is because raw
materials denominated in dollars have become more
expensive.
Freudenberg is headed for a good future thanks to the
motivation of our employees and their willingness to
embrace change. We would like to thank everyone who
helped us on our way last year for their commitment and
ideas. We would also like to extend our appreciation
to all customers and business partners for their trust and
good cooperation. In 2015, we will again strive to make
a valuable contribution each and every day to their success. This is our ultimate objective.
For the Board of Management
A further effect will be that our international acquisition
projects will become more expensive as a result of the
weaker euro.
From today‘s perspective and despite all challenges, we
Dr. Mohsen Sohi
Chief Executive Officer
11
GROUP MANAGEMENT REPORT OF THE FREUDENBERG GROUP
In the 2014 financial year the Freudenberg Group reported sales of €5,982.3 million (previous year: €5,646.1
million). Consolidated profit ran at €477.8 million (previous year: €398.8 million). At December 31, 2014, the
Freudenberg Group workforce totaled 34,030 employees (previous year: 33,245).
Fundamental Information about the Group
BUSINESS MODEL OF THE GROUP
Organizational structure of the Group
Freudenberg is a globally active group of companies; the
12 Business Groups (previous year: 16 Business Groups,
please refer to page 14 “Organizational changes“ for
further information) have a presence in over 30 market
segments and thousands of applications. Across the
globe, the Freudenberg Group’s products and services
make a valuable contribution to the success of its customers – rarely visible, but always indispensable. Without
Freudenberg & Co. Kommanditgesellschaft
Parent company
(business operations)
Freudenberg SE
Seals and Vibration Control
Technology Business Area
Nonwovens and Filtration
Business Area
Household Products
Business Area
Sales [€ million]4,028
Sales [€ million]760
Workforce27,067
Workforce
Workforce
Workforce
Business Group
Business Group
Business Group
Business Group
Freudenberg Sealing
Technologies
Freudenberg
Nonwovens
Freudenberg Home and
Cleaning Solutions
Freudenberg Politex
Nonwovens
enmech 1
Freudenberg Filtration
Technologies
Freudenberg Business Services
Helix Medical
TrelleborgVibracoustic 1
12
Freudenberg offers its customers in the passenger car
and commercial vehicle industry, mechanical and plant
engineering, textile and apparel, construction, mining and
heavy industry, energy, chemical, and the oil and gas
sectors tailor-made, innovative technological products and
services. The customer base also includes companies in
the medical technology, civil aviation, rail vehicles and
semiconductor sectors.
Parent company
(strategic management)
EagleBurgmann
1
Freudenberg, for example, indoor air would not be as
clean, cars would not drive, suits would not sit properly on
shoulders and wounds would not heal as quickly.
Fully consolidated at equity
5,994
Specialties and Others
Business Area
2,880
4,515
Freudenberg IT
Divisions
Freudenberg Service
Freudenberg develops and manufactures seals, vibration control technology components, filters, nonwovens,
surface treatment products, release agents and specialty lubricants, medical technology and mechatronic
products.
Freudenberg also develops software solutions and IT services primarily for small- and medium-sized enterprises.
Consumers enjoy the benefits of Freudenberg‘s state-ofthe-art household products marketed under the vileda®,
O-Cedar ®, Wettex ®, Gala®, Marigold® and SWASH®
brands.
Creativity, quality, diversity and innovative strength
Freudenberg sees itself as an enterprise of entrepreneurs.
Operational business is in the hands of independent
companies whose management conducts business under
their own responsibility. These individual companies in
turn belong to Business Groups.
Freudenberg has two parent companies: Freudenberg &
Co. Kommanditgesellschaft (hereinafter:
Pro-rata
2013
Pro-rata
2014
6,623
7,039
Seals and Vibration Control Technology 2
3,804
4,028
Nonwovens and Filtration 2
1,228
1,279
710
760
1,054
1,135
39,897
40,456
26,917
27,067
Nonwovens and Filtration
5,707
5,994
Household Products
2,914
2,880
Specialties and Others
4,359
4,515
Business Areas 1
Total sales [€ million]
Household Products 2
Specialties and Others 2
Workforce (as at Dec. 31)
Seals and Vibration Control Technology
1
are the company‘s cornerstones. Reliability and responsible conduct rank among the basic values of the
company with a history spanning more than 165 years.
Freudenberg is committed to partnerships with customers,
and believes in a long-term orientation, financial solidity
and the excellence of its employees.
T he figures for the Business Areas are presented in line with internal reporting procedures under which the joint ventures are consolidated
on a pro-rata basis. 2 Including intra-company sales
13
Freudenberg & Co. KG), Weinheim, Germany, is the strategic parent company, Freudenberg Societas Europaea
(hereinafter: Freudenberg SE), Weinheim, Germany, is
the parent company with responsibility for managing business operations. The corporate bodies of Freudenberg
& Co. KG are the Management Board, the Board of
Partners and the General Meeting. The corporate bodies
of Freudenberg SE are the Board of Management, the
Supervisory Board and the Shareholder‘s Meeting. The
Management Board of Freudenberg & Co. KG and
the Board of Management of Freudenberg SE have the
same members. This also applies to the Board of Partners
of Freudenberg & Co. KG and the Supervisory Board of
Freudenberg SE.
Freudenberg is a family company. It is owned by
some 320 heirs to the founding father Carl Johann
Freudenberg.
For further information on the Business Groups, please
refer to the chapter “Review of Operations by Business
Area“ (page 42 ff).
Organizational changes
During the year under review, the Freudenberg Group
continued to work very intensively at aligning the organizational structure to the future demands of the market.
Under the “Strategic Guide” governance concept, the
Board of Management will have a stronger focus on
developing the strategy, approving investments, and
setting strategic guidelines.
14
This has led to more transparency and faster decisionmaking. The Business Groups remain fully responsible for
their business operations and for meeting targets.
The Board of Management is supported by a new body
called the Executive Council. Membership of the four
CEOs in the Executive Council lends greater weight to
the perspectives of the Business Groups with regard to
overarching issues.
Under its organizational realignment, Freudenberg
integrated the former NOK-Freudenberg Group China,
Freudenberg Schwab Vibration Control and Dichtomatik
Business Groups under the roof of Freudenberg Sealing
Technologies effective January 1, 2014.
In addition, Freudenberg repositioned the Freudenberg
Real Estate Management Division as the Freudenberg
Real Estate Corporate Function effective April 1, 2014.
Furthermore, preparations were made to combine
Freudenberg Nonwovens and Freudenberg Politex
Nonwovens to form Freudenberg Performance Materials. The new Business Group officially began operating
on January 1, 2015.
Another new company is Freudenberg Business
Services KG, Weinheim, Germany – a customer-oriented
internal service provider offering the 12 Freudenberg
Business Groups efficient, high-quality and competitivelypriced business services worldwide.
Freudenberg repositioned the former Freudenberg New
Technologies Business Group as a Corporate Function,
thus strengthening creative innovation throughout the
company. The internal Freudenberg Innovation Award
presented for the first time in 2014 highlights the great
importance of innovation for the Group.
Business processes
There were some leadership changes during the year
under review: Martin Wentzler took over from Dr. Wolfram
Freudenberg as Chairman of the Supervisory Board.
Dr. Freudenberg stepped down from the Supervisory Board
in June 2014 having reached the retirement age of 73.
In 2014, the company continued to work very intensively
at improving the efficiency of administrative processes.
Freudenberg also streamlined and standardized the
Group risk management process during the year under
review, thus achieving a significant increase in efficiency.
Furthermore, the Group-wide compliance architecture was
improved.
Dr. Tilman Krauch became a member of the Board of
Management. He joined the Freudenberg Group on
October 1, 2014. The competent bodies complied with the
request of Mr. Christoph Mosmann to be released from his
responsibilities as a member of the Board of Management.
Mr. Christoph Mosmann stepped down from the Board of
Management effective December 31, 2014.
During the year under review, Freudenberg invested
strongly in existing locations and opened new sites.
Freudenberg Oil & Gas Technologies, for example, built
a new site in Port Talbot, UK, and TrelleborgVibracoustic
doubled capacity at its plant in Yantai, China. Construction
work on the new Freudenberg Chemical Specialities plant
in Valinhos, Brazil, commenced.
For further information on sites of Freudenberg companies,
please refer to the chapter “Review of Operations by
Business Area“ (page 42 ff).
As a result of the organizational realignment in the year
under review, Freudenberg has become more transparent,
the decision-making processes are faster and better, and
cooperation among the Business Groups is stronger.
The Group also redesigned the Freudenberg global
brand and defined a new brand architecture during the
year under review. The global brand will be presented at
DIALOG 2015 – an internal management event for some
300 senior executives – to be held in Detroit, USA, in
July 2015.
In addition, numerous Business Groups worked on responding to customer needs even more effectively and meeting
the shorter delivery times expected by the market.
EagleBurgmann, for example, improved the process
chain from the receipt of a customer order to delivery.
Freudenberg Sealing Technologies invested in improving
the supply chain in Pinerolo, Italy, and Freudenberg Politex
Nonwovens optimized the supply chain, reduced raw
material consumption, simplified processes, improved
energy efficiency and further raised product quality in the
year under review.
15
Consolidated group
At year-end 2014, the number of companies in the
Freudenberg Group totaled 497 located in 57 countries.
472 of these companies were included in the consolidation. 392 companies, including 129 production and 172
sales companies, were fully consolidated.
Investments in joint ventures and associated
companies
The joint ventures with Trelleborg AB, Trelleborg,
Sweden, and NOK Corporation, Tokyo, Japan, are of
major importance for Freudenberg.
The purpose of the TrelleborgVibracoustic joint venture
with Trelleborg AB is to strengthen activities in the automotive business. Trelleborg AB and Freudenberg SE,
Weinheim, Germany, each hold a stake of 50 percent.
Freudenberg and NOK Corporation jointly hold
shares in several companies, seven of which, including
Freudenberg-NOK General Partnership, Plymouth, USA,
are fully consolidated. The Asian companies grouped
together in NOK-Freudenberg Group China are consolidated according to the equity method.
NOK-Freudenberg Group China is a 50:50 joint
venture between the Japanese NOK Corporation and
Freudenberg SE with the objective of serving the highgrowth Chinese market with locally-produced and imported sealing products. The joint venture was integrated in
16
the Freudenberg Sealing Technologies Business Group
effective January 1, 2014.
enmech is a further joint venture of Freudenberg and NOK
Corporation. The company’s business activities range from
the development and production of mechatronic solutions
based on large flexible printed circuits, ready-for-use
SMD assembly flat wiring harnesses which can integrate
switches, sensors, LED and other functional components,
and connector technology.
The most important non-controlling interests held by
Freudenberg concern the Japanese companies NOK
Corporation and Japan Vilene Company Ltd. (JVC), both
registered in Tokyo, Japan.
The NOK Group manufactures and supplies sealing products, flexible printed circuits, roll products for office equipment and further products such as specialty lubricants.
JVC manufactures nonwovens for the clothing, automotive,
electrical and consumer goods industries as well as for
applications in the medical sector and filtration.
The proven partnership between Freudenberg and these
two Japanese companies has already lasted more than
50 years. Numerous activities in the USA, Asia (China
and India) and in Europe have been jointly established
during the decades-long partnership.
Further details can be found in note (4) Investments in
joint ventures and note (5) Investments in associated
companies in the Notes to the Consolidated Financial
Statements.
Acquisitions and disinvestments and discontinued
operations
In January 2014, Freudenberg Home and Cleaning Solutions acquired the Marigold household gloves business
from Comasec SAS, Gennevilliers, France. Comasec SAS
is a company of the Dutch Ansell Group, a world leader
in protective glove solutions for industrial applications.
The acquisition included the global trademark rights for
the Marigold brand as well as consumer business in
the UK, Ireland, Italy, the Netherlands, Hong Kong and
Japan.
Freudenberg Filtration Technologies acquired the industrial activated carbon corrosion protection business of
the American company MeadWestvaco Corporation,
Richmond, Virginia, USA, in November 2014. With this
acquisition, Freudenberg can offer global customers a
further future-oriented filtration solution for clean and
pollution-free air.
Freudenberg Sealing Technologies acquired Tobul
Accumulator Incorporated, Bamberg, USA, in July 2014.
The family company Tobul is a world-class developer
and manufacturer of hydraulic accumulators. With the
acquisition, Freudenberg is strengthening established
accumulator business in various markets such as energy/
oil & gas, mining and fluid technology in North and
South America.
In August 2014, the Freudenberg Nonwovens Business
Group acquired the companies which operate the
Hänsel brand interlinings business from Hänsel Textil
GmbH, Iserlohn, Germany. Hänsel is a high-quality
and innovative interlinings specialist for the international
fashion industry.
17
RESEARCH AND DEVELOPMENT
In 2014, the Freudenberg Group expensed €270.3
million (previous year: €246.3 million) for research and
development based on the pro-rata consolidation of
the joint ventures. €213.7 million (previous year: €193.0
million) was expensed based on the equity consolidation
method for joint ventures. In both cases, more than half
of the sum is accounted for by the Freudenberg Sealing
Technologies, EagleBurgmann and Freudenberg
Chemical Specialities Business Groups.
During the year under review, an average of 2,582
employees (previous year: 2,484) were employed in
research and development throughout the Freudenberg
Group based on the pro-rata consolidation of the joint
ventures, with the regional focus in Germany, where
1,542 employees (previous year: 1,564) were employed.
Based on the equity consolidation method for joint
ventures this figure was 2,025 employees (previous year:
1,936). Here, too, the regional focus was in Germany,
where 1,153 employees (previous year: 1,161) were
employed.
The goal of all research and development activities of the
Freudenberg Group is to boost the share of new product sales. To that end, strategic support is provided for
the focused, customer-oriented activities of the Business
Groups:
The Corporate Innovation function, in which the
Freudenberg New Technologies Business Group was also
integrated in 2014, is responsible for innovation strategy,
innovation marketing, public funding and collaborations/
18
networks. The function pools research and development
services to support the Business Groups and develops
new business via the New Business Development and
Venture Capital units. The issue of technology platforms
has been revived with a view to developing overarching
competences.
The New Business Development unit continued to expand
its expertise in lightweight construction during the year
under review. New Business Development also conducted structured market segment analyses in cooperation
with the Business Groups with the aim of generating new
fields of business. Particularly close attention was paid to
analyzing the energy and oil & gas market segments with
the help of external experts.
With regard to the scaffolene® (bioresorbable nonwovens)
project, Freudenberg and a selected partner successfully concluded process validation for the manufacture
of the new product in the field of biosurgery. The Group
qualified as the sole supplier. CE marking for this product is expected in early 2015 – this is a milestone for a
subsequent successful market launch. In addition to this,
Freudenberg also continued work on developing
scaffolene® as a platform technology. This will significantly
expand the product portfolio of bioresorbable polymers
and the application range, in particular with regard to
drug delivery and regenerative medicine. Moreover,
work on further customized scaffolene® pre-developments
began in the year under review.
The Freudenberg Fuel Cell Component Technologies unit
won several further series orders from high-caliber customers in 2014. Given the advanced stage of product
development and business expansion, the gas diffusion
layers and filters & humidifiers product groups were
transferred to the Freudenberg Performance Materials
respectively Freudenberg Filtration Technologies Business
Group effective January 1, 2015. These two Business
Groups will move forward with industrial production, thus
strengthening Freudenberg‘s position as a competent
component supplier with a unique product portfolio of
fuel cell components.
Awards
In the 2014 financial year the Group again honored the
achievements of employees and external scientists in the
field of innovation:
The Freudenberg Innovation Award is a new distinction.
Within the Freudenberg Group, it is the highest award
for innovations that are already successful in the marketplace. The five finalists in 2014 were as follows (see
photo pages for further details):
–Proven energy savings with high-tech lubrication
(Awardee: Freudenberg Chemical Specialities):
The power consumption of industrial plants is often
enormous. “Energy Efficiency Solutions” from Klüber
Lubrication (Freudenberg Chemical Specialities) help
to increase their efficiency and cost-effectiveness. In
an innovative measurement and evaluation process,
the energy-saving potential of the system is first identified. After optimization, the realized savings are then
measured. This can often be a tough challenge. Highprecision, easy-running specialty lubricants provide the
basis for optimization. These advanced lubricants are
used in place of conventional oils and reduce friction
between individual components. The result: a proven
reduction in energy consumption at increasing power
levels.
–Energy storage from the clean room
(Freudenberg Sealing Technologies):
One small but vital component in modern dual-clutch,
direct-shift gearboxes is the hydro-mechanical piston
accumulator. It enables silky-smooth gearshifts, even
if the oil pump is not running. To ensure that this function continues throughout the car’s lifetime, the piston
accumulator’s high-precision components are assembled by robots in a clean room. Even a single speck of
dust can cause the gas reservoir to leak and render the
piston accumulator inoperable.
–Diamond coating against corrosion
(EagleBurgmann):
To ensure that power plants produce electricity and
heat at optimal levels, the amount of steam delivered to
the turbines needs to be very precise. Feedwater pumps
play a central role in achieving this. Their ceramic
19
seals are placed under extreme chemical stress by
the feedwater. However, by coating the ceramic rings
with EagleBurgmann‘s new and extremely thin layer of
microcrystalline and electrically conductive diamond,
their durability can be vastly increased, and they can
last eight times longer than before.
–Ultra-thin nonwovens let the ions flow
(Freudenberg Nonwovens):
No mobile phone, laptop or electric car can function
without electricity from batteries. They need to be powerful, durable and – above all – safe. A wafer-thin yet
extremely durable nonwoven separator with a functional
ceramic impregnation produced by Freudenberg
Nonwovens keeps positive and negative poles permanently separated from each other. This minimizes the risk
of short circuits or even battery fires while allowing the
ions and thus the electricity to flow freely.
–Dusting robot (Freudenberg Home and
Cleaning Solutions):
Powered by a rechargeable battery, the ViRobi dusting
robot from Freudenberg Home and Cleaning Solutions
automatically runs around rooms of its own accord,
wiping them clean with its electrostatic dusting cloth.
Clever axle geometry and suspension remove the need
for high-tech navigation and enable ViRobi to negotiate
obstacles or corners.
The 2014 Karl Freudenberg Prize was awarded to
Dr. Michael Floßdorf of the German Cancer Research
Center at Helmholtz-Gesellschaft Heidelberg for his
work on “Stochastic T cell fate decisions“ from the field
of bioscience. He combined mathematical models and
statistical analyses resulting from experimental data. The
20
outcome is an important basis for the development of
vaccines or the treatment of diseases such as cancer.
The Freudenberg Group also sponsored the Heinz
König Young Scholar Award 2014 of the Center for
European Economic Research (ZEW) in Mannheim.
The award was presented to Olga Malkova of the
University of Michigan, USA, for her work on the effects
of parental leave benefits on the birthrate. Her research
represents a key contribution to the discussion concerning the effectiveness of family policy measures.
Freudenberg Sealing Technologies received the TOP
Innovation Award of the F.A.Z. Institute for 2014. This
award confirms once again that the continual improvement process and innovation culture at Freudenberg have
found recognition.
Freudenberg held the 5th Global Innovation Forum in May
2014. This time, the subject was process technologies for
the future. The internal event was attended by over 400
participants from all over the Freudenberg Group. Some
250 researchers and developers gathered in Weinheim
for the main event. Around 160 further participants in
Brazil, USA, China, India and Japan were linked via video
conferencing.
The Freudenberg Group inaugurated a new research and
development center in Qingpu, China, in July 2014. The
Group is thus expanding its site for specialty lubricants
and release agents. Klüber Lubrication and Chem-Trend,
both companies belonging to the Freudenberg Chemical
Specialities Business Group, can now respond even better
to growing demand and the specific needs of Chinese
customers.
Freudenberg has participated in research and development projects supported by the German government
and the EU for many years. These funded research and
development collaborations between industrial companies
and scientific institutions can address issues and problems
that can only be jointly solved. In the 2014 financial year,
a total of seven German companies in the Freudenberg
Group received funding for a total of 16 collaborative
projects (12 German, 4 EU) running until the end of 2014
or beyond.
21
REPORT ON ECONOMIC CONDITIONS
MACROECONOMIC ENVIRONMENT
Global economic situation
In 2014 it was above all the industrialized nations which
recorded higher economic growth than the previous year.
Momentum in developing countries was less dynamic in
a year-on-year comparison; consequently, global economic growth, and thus growth in the relevant markets for
Freudenberg, remained at approximately the same level
as the previous year. The Freudenberg Group benefited
from these positive developments and continued to grow
sales in the 2014 financial year by marketing innovative
products, achieving a high degree of customer orientation
and flexibility as well as proceeding with structured expansion in attractive markets and strategic areas of business.
The oil price, which fell sharply in the later months of
the year, could only partly offset generally unfavorable
exchange rate developments in 2014.
The global economy expanded in 2014 despite several political crises, for example in Ukraine and Syria,
and continuing economic risks, particularly in southern
Europe. The key drivers of this positive development
were the continued strong US economy (2.4 percent)
and sturdy, albeit weaker, growth in China (7.4 percent).
Regional developments in the Freudenberg Group‘s business were mixed. Moderate growth in Europe is primarily
attributable to improved economic conditions, particularly
in Germany, Spain and Italy, while the conflict in Ukraine
had a negative impact on business in Russia. Business in
North America developed well, while in particular the
problems in Argentina and weak economic conditions in
Brazil impacted on emerging markets in South America.
Freudenberg continued to enjoy strong growth on Asian
markets.
22
The eurozone recovered noticeably in the year under
review (0.9 percent), even though some problems in the
region – particularly in southern Europe – still remained
unsolved. German gross domestic product (GDP) rose
by 1.6 percent in 2014, with exports and employment
reaching record levels. Spain (1.4 percent), Portugal
(0.9 percent) and Greece (1.0 percent) returned to
growth thanks to strict reform measures. As industry in
the UK continued its upswing (2.8 percent), the strong
economic recovery across all sectors continued there.
The revival of the Japanese economy which was driven
by monetary policy was short-lived. Nevertheless,
growth averaged out at an annual 0.2 percent.
Brazil (0.1 percent) and Russia (0.5 percent) put up a
disappointing performance in 2014. Major structural
reforms that would stimulate continued above-average
growth and allow these economies to catch up with
the industrialized nations, failed to materialize. Moreover, Russia lost important trade and financial links with
Macroeconomic Environment
western industrialized nations as a result of the conflict
with Ukraine. In contrast, India developed well
(5.6 percent). The change in government there triggered
new momentum and brought a realistic chance of
systematic growth in the coming years. (Figures sourced
from: Consensus Economics, European Commission,
Inter-national Monetary Fund)
Europe increased by 1 percent, while production rose by as
much as 3 percent on the back of exports to Asia and America. (Figures sourced from: Information Handling Services)
Europe
WORLD REGIONS
The mechanical and plant engineering sector benefited
from the catch-up effect in many regions in 2014 and recorded global growth of 5 percent. While growth in Germany
and the eurozone was below average at just under 1 per-
Region
GDP growth
2013 2014
Region
GDP growth
2013 2014
Eurozone
-0.4%
0.9%
USA
2.2%
2.4%
Germany
0.1%
1.6%
Mexico
1.4%
2.1%
France
0.4%
0.4%
Brazil
2.5%
0.1%
Italy
-1.9%
-0.4%
Argentina
2.9%
-1.6%
Spain
-1.2%
1.4%
Japan
1.6%
0.2%
Portugal
-1.4%
0.9%
Russia
1.3%
0.5%
Ireland
0.2%
4.8%
China
7.7%
7.4%
Greece
-3.9%
1.0%
Taiwan
2.2%
3.5%
1.7%
2.8%
India
4.7%
5.6%
United Kingdom
Figures sourced from: Consensus Economics, European Commission,
International Monetary Fund
Developments in the Freudenberg Group‘s key sales markets
in 2014 were as follows: the automotive industry in China
and the USA enjoyed strong growth, albeit at a slightly
lower level than the previous year. Passenger car production
in China grew by 8 percent, demand increased by 11 percent. In the USA, automobile production grew by 5 percent,
and demand by just under 3 percent. For the first time in
several years, the automotive industry in Europe returned to a growth trajectory. The number of new registrations in
cent in each case, other countries recorded robust growth.
There was a 10 percent upswing in Japan, 9 percent in
China, 7 percent in the UK and 6 percent in the USA.
(Figures sourced from: Verband Deutscher Maschinen- und
Anlagenbau – German Engineering Association)
In the textile and apparel industry, the world market leader
China grew production in 2014 by 7 percent, on a par
with the previous year. Its competitors in the USA and
23
Europe returned to growth in the year under review, albeit
a moderate 1 percent in both cases. (Figures sourced
from: National Bureau of Statistics of China, Federal
Reserve Board, Eurostat)
The construction industry in the eurozone put the recession
behind it in 2014, reporting growth in excess of 2 percent.
While production in Spain climbed 17 percent, production
declined by 7 percent in Italy, and by almost 10 percent
in Portugal. The positive trend in the US construction
industry continued. At almost 7 percent, growth was even
slightly higher than the previous year. The construction
industry in China grew by 9 percent. (Figures sourced
from: Eurostat, US Census, National Bureau of Statistics of
China)
Medical technology manufacturers in Germany grew production by almost 5 percent in 2014. The USA, the world
market leader, grew further from an already high level,
adding another 2.5 percent to production. Cost efficiency
was once again one of the most important innovation
drivers. (Figures sourced from: Eurostat, Federal Reserve
Board)
Solid macroeconomic developments and the associated
high level of employment led to rising demand from final
users in many regions.
Overall, raw material prices declined slightly on a global
basis. There was a significant drop in the price of crude
oil towards the end of the year as a result of oversupply,
and the annual average price for crude oil was just under
US$100 per barrel, almost 9 percent down on the previous year. (Figures sourced from: Handelsblatt)
Following a strong first half of the year, the euro/US dollar
exchange rate fell sharply in the second six months. The
annual average exchange rate was identical with the
previous year at US$1.33/€. (Figures sourced from: European Central Bank)
DEVELOPMENT OF REAL GDP IN BRIC COUNTRIES AND
GERMANY SINCE 2008
DEVELOPMENT OF REAL GDP IN SELECTED SOUTH EAST
ASIAN COUNTRIES AND GERMANY SINCE 2008
Index 2008 = 100
Index 2008 = 100
170
160
China
150
India
130
130
Malaysia
120
120
Brazil
Russia
110
100
Germany
90
2009
2010
2011
Source: National statistical offices
24
Indonesia
Vietnam
Philippines
140
140
2008
150
2012
2013
2014
Thailand
110
100
Germany
90
2008
2009
2010
2011
Source: National statistical offices
2012
2013
2014
Freudenberg Group
At-equity
2013
2014
5,646.1
5,982.3
Profit before income taxes
[ € million]
493.3
625.1
Consolidated profit [ € million]
398.8
477.8
33,245
34,030
Sales [ € million]
Workforce
Earnings position of the Group
BUSINESS DEVELOPMENT AND POSITION
OF THE GROUP
The Freudenberg industrial group continued its good business development in 2014. Growth in emerging economies remained dynamic and growth in established markets
was also slightly above expectations. While negative
exchange rate effects impacted business development in
the first half of the year in particular, relatively stable raw
material procurement prices approximately offset these
effects.
The Freudenberg Group again reported increased sales
and consolidated operating result. Not only all Business
Areas, but also the well-integrated acquisitions at
Freudenberg Sealing Technologies, Freudenberg Home
and Cleaning Solutions and Freudenberg Chemical
Specialities contributed to this increase. The Group outperformed the market in terms of growth and this was attributable to the marketing of innovative products, a high degree
of customer orientation and flexibility, as well as structured
expansion in attractive markets and strategic fields of business. Furthermore, the Freudenberg Group maintained its
high earning power through the systematic implementation
of measures to increase productivity and efficiency.
FORECAST/ACTUAL COMPARISON FREUDENBERG GROUP*
Sales
Operating
result
LDI-Q**
Actual
2013
[€ million]
6,622.5
Forecast
for
2014
moderate
growth
Actual
2014
[percent]
+6.3
Actual
2014
[€ million]
7,039.1
512.9 moderate
growth
3.3 slight
reduction
+25.4
643.3
-18.2
2.7
* For internal reporting, the Freudenberg Group key performance indicators are
determined based on the pro-rata consolidation of the joint ventures.
** For further details please refer to the chapter on “Corporate Responsibility“.
The Board of Management uses sales and operating
result as financial key performance indicators for the
management of the Freudenberg Group; these figures are
taken from internal reporting and are based on the pro-rata
consolidation of the joint ventures. This provides greater
transparency when comparing business performance since
it also includes the activities of the 50:50 joint ventures.
As the value-oriented performance indicator, operating
result describes the profit before income taxes excluding
special effects. The return on sales is determined from the
two performance indicators of sales and operating result
and will in future represent another key indicator of operating performance. A return on sales of 9.1 percent was
reported for the 2014 financial year. These indicators are
regularly made available to the Board of Management to
assist in the timely identification of trends and changes. The
financial key performance indicators are targeted towards
sustainable earnings-oriented growth and a continuous
increase in enterprise value.
Applying the pro-rata consolidation for joint ventures, the
Freudenberg Group generated sales of €7,039.1 million
(previous year: €6,622.5 million) in 2014, thus setting a
new record. Overall, sales increased by 6.3 percent or
€416.6 million year-on-year. Adjusted for the effects of
acquisitions and disinvestments to the amount of €131.0
million and exchange rate effects, sales were 5.6 percent
or €368.0 million higher than the previous year. Sales
increased in all Business Areas.
Under the IFRS financial reporting rules, joint ventures must
be consolidated using the equity method. According to this
method, sales during the year under review amounted to
€5,982.3 million (previous year: €5,646.1 million). On this
25
SALES BY SECTORS
[%]
At-equity
Energy and water 6
Other industry sectors 12
Chemical 4
Final users 13
Medical and
pharmaceutical 4
Textile and
apparel 7
Construction 6
Spare parts business 8
Automotive OEMs 25
Mechanical and plant
engineering 15
basis, sales were €336.2 million or 6.0 percent higher than
the previous year.
Research and development expenses increased by 10.5 percent from €191.5 million in 2013 to €211.6 million in 2014.
Applying the pro-rata consolidation for joint ventures,
operating result for the year under review amounted to
€643.3 million, €130.4 million higher than the previous
year. This was attributable to higher sales, productivity
improvements, cost saving programs and favorable sectoral
developments.
Consolidated profit was €477.8 million (previous year:
€398.8 million).
Based on the equity consolidation method for joint ventures,
profit before income taxes in 2014 amounted to
€625.1 million, a year-on-year improvement of €131.8
million. This increase is primarily attributable to higher
contribution margins and active cost management.
Contribution margins rose. This is attributable on the one
hand to higher sales and the slight decrease in raw material
procurement prices, and on the other to improved capacity
utilization and measures to increase productivity in almost
all Business Groups. Selling costs rose approximately in
proportion to sales. Administration expenses declined as a
result of process and system optimization.
SALES Development
[€ MILLION]
Pro-rata
7,000
6,000
5,000
5,481.4
6,006.5 5,991.9 6,321.7
6,622.5
7,039.1
4,200.8
4,000
3,000
2,000
1,000
0
2009
2010
2011
2011 SE
2012
2013
2014
Joint ventures are consolidated on a pro-rata basis in line with internal reporting
procedures. Figures based on Freudenberg & Co. KG. until 2011.
26
Sectors and regions
The 2014 financial year was characterized by a rise in
demand on almost all markets, and developments were
positive throughout the year.
Under the IFRS financial reporting rules, joint ventures are
consolidated using the equity method. Excluding sales
by the 50:50 joint ventures such as NOK-Freudenberg
Group China, TrelleborgVibracoustic and enmech, which
make a significant contribution to automotive OEM business, the share of automotive business in Freudenberg
sales was 25 percent (previous year: 24 percent).
The second most important customer grouping for the
Freudenberg Group was the mechanical and plant
engineering sector accounting for a share of 15 percent
(previous year: 16 percent). Business with final users and
spare parts business accounted for some 13 percent,
respectively 8 percent of total sales (no change
compared with the previous year). Other major customer
groupings for the Freudenberg Group are the textile
and apparel industry (7 percent), energy and water
(6 percent), construction (6 percent), the chemical
industry (4 percent), and the medical and pharmaceutical industry (4 percent).
With few exceptions, the regional distribution of sales
remained largely unchanged in 2014. The Freudenberg
Group generated 28 percent of total sales in the European Union excluding Germany (no change compared
SALES BY Regions
[%]
At-equity
Africa/Australia 2
Germany 18
Asia 18
South/Central
America 5
EU (excluding
Germany) 28
North America 23
Other European countries 6
with the previous year). Germany accounted for
18 percent (previous year: 19 percent) of total sales,
while the Other European countries accounted for
6 percent (no change compared with the previous year).
Business in North America accounted for 23 percent
of total sales (previous year: 22 percent). 5 percent of
total sales (previous year: no change compared with
the previous year) were generated in South and Central
America. The share attributable to the Asia region was
18 percent (no change compared with the previous
year). The Freudenberg Group generated the remaining
2 percent of total sales in Africa/Australia
(no change compared with the previous year).
Financial position of the Group
Financing management of the Freudenberg Group
Freudenberg SE is responsible for all the financing
activities of the Freudenberg Group, thus ensuring the
Freudenberg Group has sufficient liquid funds at all times.
Freudenberg Group companies obtain the financing they
require via cash pools or loans provided by the internal
financing companies – for legal, fiscal and other reasons
financing in some countries also takes the form of bank
loans guaranteed by Freudenberg SE.
Freudenberg does not expose itself to financial risks
through speculation with derivative financial instruments
but uses such instruments only for hedging, and therefore
reducing, risks in connection with underlying transactions.
Future transactions are only hedged if there is a high probability of occurrence. In order to ensure the identification
and management of all financing risks, the Freudenberg
Group pursues a holistic approach to financial risk
management. The existing financial risks are identified and
limited in an institutionalized control loop.
Although financing conditions have loosened significantly
compared with previous years, currency risks remain high
as a result of distortions on currency markets. In addition,
volatility on the credit and capital markets remains high.
This also impacts the financing conditions for industrial
companies. The Freudenberg Group is in a good position to tackle these challenges thanks to its conservative
finance policy. Liquidity measures include high reserves of
liquid funds and committed credit lines with core banks.
27
In 2014, the largest single financing measure was the
conclusion of a new €250 million syndicated loan. This
loan has a term of five years and was undrawn at the end
of the year. This gives additional financing security. The
aim is to maintain a balanced due date profile, achieve
investor diversification and optimize external borrowing
conditions, thus ensuring that external borrowing by the
Freudenberg Group is for the most part independent of
short-term fluctuations on credit markets. As at December
31, 2014, Freudenberg had undrawn committed credit
lines amounting to some €400 million. The interest
payable on the certificates of indebtedness (“Schuldscheindarlehen”) included in the liabilities to banks is
based on variable and fixed components.
Off-balance sheet contingent liabilities and other financial
obligations of the Freudenberg Group are negligible.
In its rating published in May 2014, the rating agency
Moody’s rated the creditworthiness of Freudenberg SE
as Baa1 and confirmed the outlook as “stable“. This gives
the Freudenberg Group very good creditworthiness at
investment grade level.
Capital structure
Dec. 31, 2013 Dec. 31, 2014
[€ million]
Change
[€ million] [Percent]
[€ million]
Equity
2,774.9
3,211.0
15.7
436.1
Non-current
liabilities
1,412.3
1,559.3
10.4
147.0
Current
liabilities
1,685.4
1,896.2
12.5
210.8
EQUITY
AND
LIABILITIES
5,872.6
6,666.5
13.5
793.9
The equity ratio rose from 47.3 to 48.2 percent. This
was chiefly attributable to the positive result and exchange
rate developments. Adjustments in the discount rate of
provisions for pensions had an offsetting effect.
The rise in non-current liabilities to €1,559.3 million
(previous year: €1,412.3 million) was mainly attributable
to the increase in provisions for pensions and similar obligations in part due to the decrease in the discount rate.
The €210.8 million rise in current liabilities to
€1,896.2 million is attributable in particular to the €81.3
million increase in short-term provisions, above all as a
result of the increase in short-term provisions for personnel obligations, as well as the €55.3 million rise in trade
payables as at December 31, 2014. After eliminating
exchange rate effects and the effects of acquisitions,
current liabilities increased by 4.1 percent.
28
SUMMARY OF CASH FLOWS
[€ Million]
2013
2014
Cash flow from operating activities
515.9
617.8
- 519.7
- 338.7
Cash flow from financing activities
54.5
-47.3
Cash and cash equivalents at beginning of year
652.2
672.9
Changes in cash and cash equivalents with effect on payments
50.7
231.8
Changes in cash and cash equivalents from exchange rate differences
- 21.9
13.0
Changes in cash and cash equivalents from changes in consolidated group
- 8.1
0.0
Cash and cash equivalents at end of year
672.9
917.7
Securities and cash at bank and in hand
672.9
917.7
Liquidity
Cash flow from operating activities in the 2014 financial year amounted to €617.8 million, corresponding to
a year-on-year increase of €101.9 million. The rise is
primarily due to the increase (€131.8 million) in profit
before income taxes. The €129.6 million increase in
working capital to €1,189.0 million (previous year:
€1,059.4 million) had an offsetting effect.
Cash flow from investing activities amounted to
€- 338.7 million and was therefore appreciably lower
than cash flow of €- 519.7 million reported for the previous
year; this was attributable to significantly lower acquisition
sums under corporate transactions. Major investing
activities focused on tangible assets.
Cash flow from financing activities in the 2014
financial year was €- 47.3 million (previous year:
€54.5 million). The main driver was payments to shareholders and non-controlling interests.
The Freudenberg Group can meet all of its payment
obligations at any time.
29
Assets, Equity and Liabilities of the Group
BALANCE SHEET STRUCTURE
[€ Million]
Equity
Non-current assets
Non-current liabilities
Current assets
Current liabilities
6,666.5
6,666.5
5,872.6
5,872.6
3,211.0
3,847.9
2,774.9
3,483.3
1,559.3
1,412.3
2,818.6
2,389.3
1,896.2
1,685.4
2013
2014
Assets
30
2013
2014
Equity and
Liabilities
At €6,666.5 million (previous year: €5,872.6 million), the
total assets of the Freudenberg Group increased by
€793.9 million.
The rise in the balance sheet total is attributable among
other things to the increase in non-current assets,
particularly as a result of the acquisition-driven increase in
intangible assets and the positive change in participations
consolidated by the equity method.
The significant €429.3 million increase in current assets
to €2,818.6 million is chiefly attributable to the increase
in securities and cash at bank and in hand – as a result
of the appreciable rise in free cash flow – and the rise in
receivables as a result of positive business development.
Equity and liabilities items are explained in the chapter
“Capital structure“ of the Group Management Report.
Investments
Investments in intangible assets, tangible assets and
investment properties rose during the year under review to
a total of €271.6 million (previous year: €229.3 million)
and were therefore higher than depreciation of
€254.7 million. In terms of Freudenberg Group sales,
this corresponds to an increase in the investment rate from
4.1 percent in the previous year to 4.5 percent in 2014.
The center was opened as part of a multi-year investment
plan for China.
€79.1 million (previous year: €74.1 million) were invested
in Germany, among other things in a large administrative
building at Weinheim industrial park, or in production
halls and plant infrastructure at the Oberwihl location.
Furthermore, an on-site day care center for children was
opened at Weinheim industrial park in November, thus
making an important contribution to the work/life balance
for parents.
Investments planned for 2015 are likely to be financed
from cash flow from operating activities and have no
major effect on net assets.
Summary statement
Developments in the assets, liabilities, financial position
and earnings position of the Freudenberg Group were
stable. On this basis, the Freudenberg Group was able to
meet its growth forecast and business targets.
The events reported in the chapter “Report on PostBalance Sheet Date Events“ do not change this
assessment.
The Freudenberg Group invested worldwide and investment in almost all regions was higher than the previous
year. Major projects in 2014 included a production
location for Freudenberg Chemical Specialities in Valinhos, Brazil, and a new research and development center
for Freudenberg Chemical Specialities in Qingpu, China.
31
HUMAN RESOURCES
In our internal reporting – where the joint ventures are
consolidated on a pro-rata basis – the headcount as at
December 31, 2014 was 40,456 employees (previous
year: 39,897). Based on the equity consolidation method
for joint ventures, the Freudenberg Group employed
34,030 employees (previous year: 33,245). Personnel
expenses increased to €1,811.8 million (previous year:
€1,727.9 million).
Overall, headcount development was positive on the
back of continued dynamic growth. The headcount rose
in Germany to 9,647 (previous year: 9,538), in Europe
(excluding Germany) to 8,592 (previous year: 8,375), in
Asia to 6,441 (previous year: 6,231), and in North America to 7,484 (previous year: 7,200).
Vocational training at Freudenberg
In 2014, 142 young people (previous year: 170) began
their vocational training at Freudenberg‘s German companies. The decline in the number of vocational trainees is
chiefly due to changes at Freudenberg Sealing Technologies. In previous years the Business Group trained in excess
of its requirements at the Weinheim location and realigned
the number of vocational trainees accordingly.
In total, 511 people were training at Freudenberg in
Germany as at December 31, 2014. The spectrum ranges
from a two-year commercial or technical apprenticeship
to dual studies at a university of cooperative education.
Freudenberg has acquired a reputation for the high standard
of its vocational training, as is confirmed by the fact that
companies located in the vicinity of Freudenberg operations
send their young people to Freudenberg for training.
32
Freudenberg drafted a concept for a modern, new vocational training center in Weinheim. The center will be based on
the latest educational practice and will be fitted with state-ofthe-art technical equipment in order to safeguard excellent
vocational training for the future.
Freudenberg invests in vocational training at several locations as is illustrated, for example, by EagleBurgmann
Germany GmbH & Co. KG. Industrial mechanics, technical
product designers and industrial clerks receive skilled training
in Wolfratshausen.
Human Resources
WORKFORCE BY REGION
(AS AT DEC. 31, 2014)
At-equity
Pro-rata
North America 7,484
Africa/Australia 411
North America 8,343
Africa/Australia 432
South/Central
America 1,455
Asia 6,441
South/Central
America 1,773
Asia 8,775
Europe (excluding
Germany) 8,592
Germany 9,647
Talent Management
Competition to recruit the best minds is one of the biggest
challenges facing any company. Freudenberg‘s response
to this challenge is excellent talent management:
Group-wide development programs for top
management
Group-wide development programs for the top two
management levels below the Board of Management
were launched at Freudenberg during the year under
review. Both the Strategic Leadership Program and the
Business Leadership Program are key elements of the
global talent management process and bring together
employees from the various Business Groups. The objective is to create a network for top management throughout
Freudenberg in order to meet the demands of increasing
internationalization and to respond to market change.
What is needed are international teams who share knowledge with one another, thus developing new ideas and
solutions. Both programs are being implemented in cooperation with the internationally acknowledged INSEAD
Business School, Fontainebleau, France.
Europe (excluding
Germany) 10,597
Germany 10,536
FLDP alumni organizations are to be established in the
regions to maintain the momentum of the network. Such
organizations have already been set up in China and
Europe, where several network meetings or FLDP alumni
days were held with extremely positive feedback.
In addition, regional talent dialogues aimed at supporting
management talent across all Business Groups were set
up in all regions in 2014. These meetings serve to discuss
Group-wide development perspectives for identified regional management talent. Freudenberg also expanded the
functional talent dialogue which is designed to develop
specialist talent.
Freudenberg Academy is the name given to a concept
addressing the development of a corporate university for
the Freudenberg Group to support collaboration among
the academies run by individual Business Group. Two
key elements of this concept are the Learning Management System, which is to be rolled out in 2015, and the
Freudenberg Training & Development Forum, which took
place for the first time in 2014.
Freudenberg Leadership Development Program
The Freudenberg Group offers leadership training for
management talent in all regions. During the year under
review, Group-wide development programs featuring
standardized content were introduced for management
talent as part of the Freudenberg Leadership Development
Program (FLDP). The target group is young managers who
have either just embarked on their first management tasks
or are about to do so.
33
FREUDENBERG GROUP WORKFORCE BY REGION
11,000
9,538
At-equity
9,647
9,000
8,375
8,592
7,200
7,000
7,484
6,231
6,441
5,000
3,000
1,485 1,455
1,000
0
416
Germany
Europe (excluding Germany)
North America
South/Central
America
2013
2014
Africa/
Australia
Regional activities
South America
Europe
The Freudenberg Leadership Development Program
for middle management launched in 2010 was again
implemented in the year under review with 24 employees
taking part. To date, a total of 102 managers have successfully completed this training.
Two FLDP events were held in 2013, one in English and
one in German; from 2014 onwards, English became the
language of both events, which bring together participants
of different nationalities and from different functions and
Business Groups. Under the scheme comprising five modules, participants have the opportunity to network and
gain experience with intercultural project work.
In Germany, Freudenberg opened an on-site day care
center at its headquarters in Weinheim. The Group is thus
making an important contribution to the work-life balance
for parents.
North America
The second Leadership Program for young potentials began
in 2014. 19 young managers from different cultural backgrounds came together to learn how to prepare for future
management tasks. The program focused in particular on
encouraging diversity.
In addition, Freudenberg launched a further round of the
mentoring program to develop young potentials introduced a few years ago. 20 mentors, executives from various
functions, guide their protégés for a period of one year,
supporting their personal development and broadening
their network. The young potentials also learn more about
the diversity of the Freudenberg Group in North America
which strengthens their bond with the company.
34
Asia
411
Managers from all Business Groups in Brazil, Argentina
and Chile attended an innovation workshop in February
2014. Moderated by a well-known Brazilian management school, the managers drafted strategies to raise
innovation capabilities and implement these capabilities in
the region.
China and Asia
The Freudenberg China Talent Summit, a two-year
program for middle management talent in China, was
first introduced in 2006. Participants now also include
management talent from Thailand, South Korea and
Vietnam, and the scheme, which has now been renamed
Freudenberg Leadership Development Program Asia,
continues to comprise intensive training modules and
challenging project work, and is supported by international managers from Freudenberg.
During the year under review, 23 employees from seven
Business Groups were trained as Cross Culture Ambassadors under a pilot project. The participants from China,
Taiwan, Japan and Germany learnt about the different
value systems and communication behaviors of different
cultures and formulated openings for achieving more
effective cooperation.
Human Resources
FREUDENBERG GROUP WORKFORCE BY REGION
11,000
10,382
10,536
10,186
10,597
9,000
Pro-rata
8,042
8,989
8,343
8,775
7,000
5,000
3,000
1,000
0
1,870
1,773
428
Germany
Europe (excluding Germany)
North America
South/Central
America
Asia
432
2013
2014
Africa/
Australia
The first Lean Management Workshop also took place
in 2014. The workshop consisted of six two-day modules
which introduced employees from various Freudenberg
Business Groups to lean management methods. A total of
18 participants received a “Lean Green Belt“ certificate.
India
Talent management in India consists of a combination of
management development, retaining talent by offering
individual training schemes at various levels, and recruiting
new talent from leading business schools in India.
38 talents have so far participated in two Leadership
Development Programs in India. This scheme was revised
during the year under review and adapted to cover the
standard content for Freudenberg Leadership Development Programs. It will take place again in 2015 under the
aegis of an external training company. The participants
were selected during the regional talent dialogue which
took place in early January 2015.
The Freudenberg India Entrepreneurial Leadership
Development Program remains the key measure for
recruiting talent from the best business schools in India for
Freudenberg. The objective is to enroll outstanding graduates from all disciplines in order to increase the number of
potentials for future management tasks.
35
The priority goals of the Freudenberg Group are the avoidance of all accidents, preventive health care, and reducing
the impact of business activities on the environment.
ENVIRONMENTAL PROTECTION, OCCUPATIONAL
HEALTH AND SAFETY
since 2011. The transparency brought by this process has
already led to a series of improvement projects such as the
two outlined below:
Management systems
The introduction of management systems relating to occupational health and safety (OHSAS 18001) and environmental
protection (ISO 14001 or EMAS) continued in the 2014
financial year. 86 percent of Freudenberg Group production
facilities now operate an occupational health and safety
management system pursuant to OHSAS 18001 and 87
percent of Freudenberg Group production sites operate an
environmental management system pursuant to ISO 14001
or EMAS.
Demographic change and the associated age-related
diseases are causing a rise in the sickness absence rate at
several sites. In response to this situation the Freudenberg
Group has, for example, developed a health program
featuring health checks, sport during work breaks, and
changes in the canteen menus.
In France, Freudenberg Filtration Technologies introduced
a project about managing stress at the workplace. Interactive training sessions and workshops help employees to
develop anti-stress mechanisms.
Investments
Occupational safety
In the year under review, direct investments in occupational
health and safety amounted to €12.0 million (previous year:
€10.6 million). Direct investments in environmental protection
amounted to €1.8 million (previous year: €2.8 million).
The share of direct investments in environmental protection,
occupational health and safety in total investments in tangible
assets, intangible assets and investment properties amounted
to 5.1 percent (previous year: 6.9 percent).
Preventive health care
The Group further expanded preventive health care
management in the year under review. Various programs
implemented Freudenberg‘s health care principles throughout the company. Internal surveys on health care infrastructure served to identify improvement potential and
define corresponding measures. Health care performance
indicators, such as the sickness rate, have been recorded
36
Occupational safety measures focus on changing the
behavior of all employees. One example of these efforts
is the numerous projects implemented under the “We all
take care“ environmental protection and occupational
health and safety initiative. Trainers and apprentices at the
Freudenberg Service Training Workshop have, for instance,
jointly developed a concept that enables apprentices
to systematically inspect their working environment for
hazards. Each of the apprentices becomes a safety
observer for a one-week period. They are tasked with
checking the work of the other apprentices in their group
for potential risks and ensuring their safety during the
week they are on safety duty.
The LDI rate (LDI is the acronym for Lost Day Incident)
used by Freudenberg in its internal reporting is based on
the pro-rata consolidation of the joint ventures. On this
basis, the LDI rate in 2014 was 2.7, representing a further
The Freudenberg Group signed the United Nations Global Compact in January 2014. This is a voluntary corporate
responsibility initiative to align operations to values and sustainability. The Group published its first Communication on
Progress report in August 2014. The report describes how the company brings the ten Global Compact principles on
human rights, labor, environmental protection and anti-corruption to life.
improvement on the previous year (3.3). This indicator is
regularly made available to the Board of Management
and therefore serves as a non-financial key performance
indicator for the Freudenberg Group. The LDI rate
measures all accidents at work involving at least one day‘s
absence per 1,000 employees. Based on the equity
consolidation method for joint ventures, the LDI rate was
2.7 (previous year: 3.4). In terms of the standard for
manufacturing companies, the Group therefore achieves
first-class occupational safety.
From 2015, the non-financial key performance indicators
used for internal reporting are being redefined. The indicator that will be used from the beginning of 2015 will be
LDI-FR (“Lost Day Incident – Frequency Rate“). Unlike the
LDI rate formerly used for reporting purposes, the LDI-FR
measures accidents at work involving at least one day‘s
absence per million working hours. In the year under
review, the LDI-FR was 1.4 (previous year: 1.8) based on
the pro-rata consolidation method for joint ventures, and
1.5 (previous year: 1.9) based on the equity consolidation
method for joint ventures.
The Business Groups address the ecological and social
impact of their products. New product development at
Freudenberg Home and Cleaning Solutions, for example,
involves a stage gate process that factors in sustainability
aspects. New products must perform better than their
predecessors.
The strict emission limits for automotive engines call for new
technical solutions - from fuel injection to exhaust aftertreatment. The new BlueSeal seal ring from Freudenberg
Sealing Technologies is designed for use in high-pressure
pumps. This patented technology weighs 25 percent less
than a conventional seal and requires only half as much
installation space.
In the field of vibration control technology, Freudenberg
Schwab Vibration Control has developed HALL 2.0, a new
hydraulic axle guide bearing. With the help of path sensors, cameras and GPS data, it keeps trains on track. The
result is a safer ride, less wheel and rail wear, less noise
and lower energy consumption.
Energy management
The total number of accidents resulting in at least one day‘s
absence from work during the year under review was 95
(previous year: 111). At six, the number of serious accidents
was on a par with the previous year.
Environmental protection
Numerous products manufactured by the Freudenberg
Group help customers achieve efficient and sustainable
resource management. Internally, Freudenberg fosters this
approach, both during the manufacture of products and
with regard to the design of new buildings and the modernization of existing ones.
Many site projects and Business Group initiatives oriented
to the Freudenberg HSE (Health, Safety and Environment)
guideline focus on sustainable energy use with a view to
reducing the environmental impact of business activities.
Energy managers have begun their work at many Business
Groups and initiated numerous improvements to existing
plants such as heating systems, compressors, ventilation
and steam generation units.
A growing number of Freudenberg sites is introducing
energy management systems, some certified to DIN EN
ISO 50001, in order to achieve a sustainable reduction in
37
energy consumption. Freudenberg Sealing Technologies,
for example, has begun conducting energy audits at its
German sites. Some facilities received certification during
the year under review.
Furthermore, in cooperation with other Business Groups,
other potential was identified and joint projects to increase
energy efficiency were initiated.
Key data
In 2014, Freudenberg consumed 1.6 million megawatt
hours of energy (previous year: 1.6 million megawatt
hours). The break-down by sources of energy is as follows:
Outsourced energy supplies (power, steam and district heat generated outside Freudenberg; 0.99 million
megawatt hours)
Natural gas (0.57 million megawatt hours)
Fuel oil (0.03 million megawatt hours)
This energy consumption of 1.6 million megawatt hours
translates into costs totaling approximately €125 million.
Energy costs accounted for 2.1 percent of total sales (previous year: 2.2 percent).
There was one event with a significant environmental
impact in 2014 (previous year: one event): A fire broke out
in the heat treatment furnace section of the Freudenberg
Sealing Technologies facility in Kufstein, Austria. The production building was evacuated immediately. The fire was
soon brought under control. No one was injured. Employees were able to return to work after two hours.
38
Social responsibility
Social responsibility is in Freudenberg‘s DNA. The “Responsibility“ Guiding Principle, part of the Group‘s corporate values,
states: “Our company and its family shareholders together
are committed to protecting the environment and being responsible corporate citizens in all countries and communities
where we do business.“ This commitment goes back to the
company‘s founder Carl Johann Freudenberg and is brought
to life today by the Group‘s employees all over the world.
In 2014, many of the Group‘s companies, sites and employees worldwide again engaged in local projects and
initiatives - focusing above all on environmental protection
and the education of children and young people. The
spectrum ranges from small actions in the direct neighborhood to complex projects. Regardless of the scale, all of
these activities have one thing in common: they are tailored
to suit local needs and usually involve the engagement
of local Freudenberg employees. In addition, numerous
internal assistance and support programs are available to
the Group‘s own employees. Furthermore, Freudenberg
largely implements the rules of the German Corporate
Governance Code on a voluntary basis.
In 2014, Freudenberg organized the first Service Day in
North America. On September 26, employees in more
than 50 locations in Canada, the USA and Mexico
donated food, organized blood drives, visited local senior
centers and supported schools or educational programs –
thus practicing social responsibility in their neighborhoods
in many different ways.
Another success story is the “Learn to Transform“ educational program in Brazil, where the Diadema site of
Freudenberg Sealing Technologies organizes free, sixmonth pre-vocational training courses for young people
from low-income families.
The following two examples illustrate the long-term nature
of the local projects: Freudenberg gives young people
the opportunity to complete dual study courses to qualify
as welders, plumbers, engine mechanics and machine
fitters at a nonprofit training center in Nagapattinam in
the Indian state of Tamil Nadu south of Chennai opened
in 2009. The Nagapattinam region, with a population
chiefly comprising low-income agricultural workers and
fishermen, was very hard hit by the tsunami in 2004.
An elementary school was rebuilt with Freudenberg’s
help and opened in 2009 in Haijin, a village in Sichuan
province, China, almost completely destroyed by an
earthquake in May 2008. The building provides some
300 students with the right setting for a successful start to
their education. Freudenberg employees visit the school
each year and organize various activities such as the
summer school project, extra tuition and a Christmas party.
In the meantime the first children have graduated from the
elementary school. “Freudenberg Help“, the association
established specially for the elementary school project, is
therefore continuing its assistance and supporting students
in Haijin - both financially and personally - as their education
progresses.
TANNER, Freudenberg‘s youth exchange program, celebrated its 15th anniversary in 2014. Freudenberg offers its
employees‘ children worldwide the opportunity to encounter different cultures, to broaden their horizons and to learn
for life. Over the past 15 years almost 1,000 young people have traveled the globe with TANNER. In the process,
the young participants, their parents and their host families
have gained a stronger sense of belonging to the global
Freudenberg community.
Since 1984, Freudenberg Stiftung has been promoting
long-term structural change and contributing to more
inclusion, education and democracy with its programs. As
a nonprofit limited company, the foundation is a shareholder of Freudenberg & Co. KG - albeit with no voting rights.
All projects focus primarily on children and young people
and their social, language, educational and vocational
integration.
Enactus, the world‘s largest student organization, focuses
on social and ecological projects. The Freudenberg Group
has been a committed Enactus partner for over ten years. In
2014, the team from the University of Mannheim became
the Enactus National Champion in Germany. The winning
team from the “city of squares“ is mentored by Cornelius
Bossers from Freudenberg Home and Cleaning Solutions.
Apart from these initiatives, the Freudenberg Group will be
launching a new program to strengthen social commitment
in 2015. Initially, the initiative with funding of €10 million
will run for five years. The objective is to support and maintain projects that serve to promote education and environmental protection.
39
Energy storage from the clean room
Find out more here
40
Freudenberg Innovation Award 2014 finalist
Modern dual-clutch, direct-shift gearboxes represent the state of the art in transmissions. One small but vital
component is the hydro-mechanical piston accumulator manufactured by Freudenberg Sealing Technologies.
It enables silky-smooth gearshifts, even if the oil pump is not running. To ensure that this function continues throughout the car’s lifetime, the piston accumulator’s high-precision components are assembled by robots in a clean
room.
Even a single speck of dust could cause the gas reservoir to leak and render the piston accumulator inoperable.
41
REVIEW OF OPERATIONS BY BUSINESS AREA
The Freudenberg Group‘s four Business Areas – Seals and Vibration Control Technology, Nonwovens and Filtration,
Household Products, and Specialties and Others – focus on long-term, sustainable and profitable growth. In partnership with its customers, Freudenberg harnesses its high technical expertise and enormous innovative strength to constantly improve its products, thus making an important contribution to helping customers solve the challenges they face.
SEALS AND VIBRATION CONTROL TECHNOLOGY BUSINESS AREA
In the 2014 financial year, the Seals and Vibration Control Technology Business Area comprised the following five
Business Groups:
F reudenberg Sealing Technologies
EagleBurgmann
elix Medical
H
TrelleborgVibracoustic
In 2014, roughly three quarters of sales in this Business Area were generated by the automotive industry and the
mechanical and plant engineering industry. Sales in this Business Area rose to €4,028.3 million (previous year:
€3,803.7 million). The headcount at year-end rose to 27,067 (previous year: 26,917).
of Freudenberg Sealing Technologies with effect from
January 1, 2014.
The Business Group grew sales in the year under review
to €2,103.3 million (previous year: €1,958.6 million).
The increase is attributable to organic growth and
acquisitions.
The operating result also improved year-on-year. This
positive trend is chiefly due to higher sales volumes
and appreciable increases in productivity as well as
acquisitions.
Annual figures
Prior-year figures have been adjusted to take account
of the integration of the former independent Business
Groups NOK-Freudenberg Group China, Freudenberg
Schwab Vibration Control and Dichtomatik under the roof
42
Freudenberg Sealing Technologies had a headcount
of 14,906 as at December 31, 2014 (previous year:
15,366 employees).
Business development
2014 was a very successful financial year for
The sales data for joint ventures used by Freudenberg in its internal reporting are based on the pro-rata consolidation method. The sales and workforce data in the chapter entitled “Review of Operations by Business Area“ are
presented on a pro-rata basis.
In the consolidated financial statements, however, the 50:50 joint ventures are consolidated by the equity method.
Sales and workforce data as well as assets and liabilities items are therefore not taken into consideration. This primarily concerns the Freudenberg Sealing Technologies, TrelleborgVibracoustic and enmech Business Groups.
Freudenberg Sealing Technologies. Developments in
almost all regions and market segments were positive. All
units reported growth. The largest increase in sales by
the Business Group came from China. Europe and North
America also made a substantial contribution to sales
growth.
As far as regional activities in the year under review
were concerned, Freudenberg Sealing Technologies
continued to focus on China and India, where there
are still significant growth opportunities for the future. In
China, demand in the automotive sector was particularly strong, but there was a noticeable upswing among
industrial customers in the country as well. In contrast, the
market in Brazil, where the macroeconomic situation led
to a downturn in sales above all in the automotive sector,
proved challenging.
Key events
The integration of seals and vibration control technology business operations under the roof of Freudenberg
Sealing Technologies – part of the Freudenberg Group‘s
organizational realignment – was completed in 2014.
Business in America, Europe and India was already
combined in Freudenberg Sealing Technologies back
in 2011. Business in China was added in the year under
review with the integration of the NOK-Freudenberg
Group China joint venture which is co-led by Freudenberg
Sealing Technologies and NOK Corporation. The two
companies are jointly intensifying the market presence and
systematically expanding the product portfolio. In the past,
activities in China focused on the automotive business.
Going forward, the Business Group is to devote greater
attention to serving the industrial sector, extending the
product offering to cover industrial applications.
The former independent Business Groups Freudenberg
Schwab Vibration Control and Dichtomatik were also integrated in 2014. This brings numerous advantages for customers. Freudenberg Schwab Vibration Control can make
use of the efficient administration processes at Freudenberg
Sealing Technologies, and is thus in a position to concentrate fully on the market and leverage its potential even
more effectively, for example with reference to rail technology or the manufacturers of construction and agricultural
machinery and tractors.
Dichtomatik has also been successfully integrated in
Freudenberg Sealing Technologies. Dichtomatik is
Freudenberg‘s sales organization in the market for technical seals. The company is a global organization and
excels in logistics, service and purchasing. This integration
creates synergies in purchasing and logistics, thereby
freeing up resources for investing in growth.
Activities undertaken by Freudenberg Sealing Technologies to further strengthen its global presence and expand
its product portfolio included among other things the
acquisition of Tobul Accumulator Incorporated. Tobul is
a world-class developer and manufacturer of hydraulic
accumulators. The family-owned company has sites in
Bamberg, South Carolina, USA, and Houston, Texas, USA,
and employs some 120 people. Tobul Accumulator Incorporated manufactures products such as piston and bladder
accumulators for industrial applications and therefore
ideally complements the existing portfolio. The focal points
lie in the market segments energy/oil & gas, mining as well
as fluid power in North and South America.
43
2013
Sales [€ million]
1,958.6
2014
2,103.3
Workforce
15,366
14,906
Freudenberg Sealing Technologies also made investments at sites in the year under review. €4.3 million were
spent on expanding production capacity at the facility
in Kecskemét, Hungary. The production area has been
increased by 30 percent. This project brought improvements in many respects, such as material flow and safety
standards.
A new distribution center combining the two existing
warehousing facilities in Pinerolo and Verona was built
in Pinerolo, Italy. Freudenberg Sealing Technologies is
investing €1.8 million in the site infrastructure to improve
the supply chain.
A further €5.8 million was invested in production halls
and plant infrastructure at the German site in Oberwihl.
Total investment at the site amounts to €9.8 million, and
the measures to expand the production area under this
project are scheduled for completion within three years.
The Oberwihl facility, which has been in existence for
more than 60 years, mainly produces O-rings for industrial and automotive customers.
Innovation is a key element of corporate philosophy
at Freudenberg Sealing Technologies and is pursued
consistently and systematically. Product, material and
process competence are decisive factors in a structured
innovation process. Freudenberg Sealing Technologies‘
achievements in this field were recognized in October
2014, when the Business Group was presented with the
TOP Innovation Award of the F.A.Z. Institute for the first
time.
In the quest to use less material while not comprising on
performance, Freudenberg Sealing Technologies has
developed a new solution for press-in-place seals: thanks
44
to its unique design, the Curve Gasket achieves a perfect
seal, uses less material and its improved performance
allows automobile manufacturers and automotive suppliers to design smaller, lighter engine components, thus
reducing the total vehicle weight. The seal is one of the
products in the Low Emission Sealing Solutions (LESS) line
which is becoming increasingly relevant for trucks and
buses.
The stringent emissions limits for engines in the automotive
field call for new technical solutions – covering everything
from fuel injection to exhaust after-treatment. The new
BlueSeal seal ring is designed for use in high-pressure
pumps. This patented technology weighs 25 percent less
than a conventional seal and requires only half as much
installation space. Due to its additional metal carrier, the
BlueSeal seal ring is mechanically resistant to high pressures and resists aggressive substances due to the PTFE
material. It also significantly reduces friction.
In the field of vibration control technology, a new hydraulic axle guide bearing – HALL 2.0 – was developed and
showcased at Innotrans in Berlin in September. HALL 2.0
keeps trains on track with the help of path sensors, cameras and GPS data, resulting in a safer ride, less wheel
and rail wear, less noise, and lower energy consumption.
The demands placed on the components of a wind turbine
are enormous. Among other things they must be able to
withstand extreme weather conditions, lubricants, and
ozone. The newly developed Radiamatic R 55 radial shaft
seal has been designed with an integrated deflector lip that
protects wind turbine systems against harsh environment
elements and eliminates the need to use a second seal –
a common practice in existing wind systems. Apart from
eliminating the expense associated with a second seal,
another advantage of this system is that it can be installed in
tight spaces.
Material competence is a key success factor for
Freudenberg Sealing Technologies. Thanks to an innovative
combination of two different polyurethanes, the advantages of the new rod seal HDR-2C include special extrusion
stability in the high-pressure range and great flexibility down
to a temperature of –50°C. Applications include hydraulic
cylinders in construction machinery.
Profile:
Freudenberg Sealing Technologies is a supplier, development and service partner for customers in different market
segments, such as the automotive industry, civil aviation,
mechanical engineering, shipbuilding, food and pharmaceuticals, and agricultural and construction machinery.
Based on the Simmerring® which was developed by
Freudenberg in 1929, Freudenberg Sealing Technologies has built up a broad and continuously expanding
range of seals and vibration control technology products – from customized solutions to complete sealing
packages. Together with its partner NOK Corporation,
Japan, Freudenberg Sealing Technologies forms a global
network with the aim of offering products of the same high
quality. NOK-Freudenberg Group China is a 50:50 joint
venture between the Japanese NOK Corporation and
Freudenberg. In addition, Schwab Vibration Control, Dichtomatik and Corteco also come under the Freudenberg
Sealing Technologies umbrella. Schwab Vibration Control
is a leading supplier of technology for vibration control
components and systems for rail vehicles, wind energy
solutions, agricultural and construction machinery and
other industries. Dichtomatik is Freudenberg’s sales organization in the market for technical seals. Corteco is the
Freudenberg Group specialist for the independent automotive aftermarket specializing in spare parts for seals and
vibration control as well as service parts such as cabin air
filters.
Products and services
Simmerrings, diaphragms, high-precision molded parts,
bellows, dust boots, hydraulic accumulators, O-rings, seals
for hydraulic and pneumatic applications, frame gaskets,
silicone seals, shock absorber seals, valve stem seals
and various special seals; sealing packages for engines,
gearboxes, brakes, axles and steering systems; rubber,
plastic and PTFE components for suspensions; special seals
for electrical and fuel systems; sealing solutions for special
applications; vibration control components and systems for
rail vehicles, energy generation, agricultural and construction machinery and other industries
Production locations
Austria, Brazil, Canada, China, Czech Republic, Estonia,
France, Germany, Hungary, India, Italy, Mexico, Spain,
Turkey, UK, USA
Freudenberg Sealing Technologies GmbH & Co. KG
69465 Weinheim | Germany
Phone:+49 6201 80-6666
Fax: +49 6201 88-6666
E-mail:info@fst.com
www.fst.com
45
2013
Sales [€ million]
140.4
2014
153.2
Workforce
690
753
return to the level of the first half of 2014 in the foreseeable future. The Business Group continued to focus on
specific market segments in the year under review as it set
its sights on becoming the leading supplier of advanced
sealing solutions and differentiated sealing products for
the oil and gas industry.
Key events
Annual figures
Freudenberg Oil & Gas Technologies generated sales of
€153.2 million in 2014 (previous year: €140.4 million).
At year end 2014, the Business Group had a headcount
of 753 (previous year: 690 employees).
Market conditions for Freudenberg Oil & Gas Technologies at the beginning of the year were characterized by
high production activity and stable oil prices worldwide.
The second half of 2014 saw increasing excess supply
on global oil markets which led to a noticeable drop in
the oil price. Following their meeting in November 2014,
the OPEC countries (OPEC is the acronym for the Organization of the Petroleum Exporting Countries) stated their
resolve not to throttle back production in order to boost
prices as they had done in the past. As long as OPEC
continues with this strategy, or as long as demand for oil
does not increase significantly, the oil price is unlikely to
46
During the year under review, Freudenberg Oil & Gas
Technologies successfully concluded the integration of
the Vector Technology Group acquired in 2013. To that
end, the Business Group invested in new and existing
Vector plants. In 2014, Freudenberg Oil & Gas Technologies built a new facility in Port Talbot, UK, which will
manufacture the Vector product line which includes patented metal-to-metal seal technology and high-integrity
connector products for offshore and subsea applications.
There has been a strong increase in demand for Vector
products in recent years beyond the capacity of the
three existing plants on the Baglan Industrial Estate in Port
Talbot. Therefore, Freudenberg invested in a new facility
where the three original Welsh plants could be combined
into one. This move benefits the Business Group with
greater operational efficiencies, a significant investment in
new CNC machining capabilities, and additional testing
and R&D capabilities for the global Vector product line.
The project is backed by funds of just under €4 million
from the Welsh Government.
Overall, Freudenberg will be investing some
€14 million in the new facility. During the year under
review, Freudenberg Oil & Gas Technologies also
invested in the site at Houston, Texas, USA, where
existing molding machines were replaced by new ones.
This new equipment not only increases productivity but
also has a positive impact on occupational health and
safety and environmental protection.
In November 2014, the Freudenberg Oil & Gas
Technologies manufacturing location for petroleum
elastomers in Houston received the API 16A license
for the manufacture of annular packing units for drilling
operations and blowout preventers (BOPs). Only a few
sealing technology providers have received this license.
The license places Freudenberg Oil & Gas Technologies on an equal footing with major OEMs of annular
packing units. The products manufactured under the
API 16A license use internally developed proprietary
elastomers and are marketed and sold under the brand
name of WellProtek™.
In 2014, the Business Group again continued its work
on key projects with major customers. Material and product tests were performed at the special laboratory of
Freudenberg Oil & Gas Technologies in Houston. These
lab tests set the Business Group apart from its competitors and reinforce its good market reputation.
Profile:
Freudenberg Oil & Gas Technologies provides innovative
sealing solutions and differentiated sealing products to
the global oil and gas industry. The Business Group
focuses on solutions for applications in the upstream
segment, i.e. exploration and production, such as the
markets for drilling/BOP (pressure control) products,
wellhead equipment, fracturing services, offshore oil and
gas platforms, flow lines and subsea installations. With
some 750 employees, Freudenberg Oil & Gas Technologies serves a wide range of customers including oil and
gas producing companies, original equipment manufacturers (OEMs) and engineering and service companies
that provide technologies, equipment and services for
pro-ducing oil and gas from land-based and offshore
platforms throughout the world. Freudenberg Oil & Gas
Technologies has its own materials development and
product testing lab where new materials and solutions are
developed and tested.
Elastomer O-rings and specialty seals, ram and annular
blowout preventer seal elements and seal kits, engineered
thermoplastic seals, seal stacks and assemblies, standard
and proprietary metal seal gaskets, spiral wound gaskets,
and sheet gaskets, Vector SPO® Compact Flanges, Vector
Techlok® Clamp Connectors and ROV-operated Vector
Optima® Subsea Connectors
Locations
Australia, Brazil, Canada, Malaysia, Norway, Singapore,
United Arab Emirates, UK, USA
10035 Brookriver Drive, Suite 400
Houston, Texas 77040 | USA
Phone:+1 281 233-1400
Fax: +1 281 894-5232
E-mail:info@fogt.com
www.fogt.com
47
EagleBurgmann
2013
Sales [€ million]
760.1
2014
765.8
Workforce
5,881
5,908
EagleBurgmann
as planned. There were also the first tentative signs
of recovery in the mechanical seals market in China.
Market conditions in Japan, on the other hand, remained
subdued as investment projects to optimize the power
station infrastructure came to an end.
Against this macroeconomic backdrop EagleBurgmann
recorded an increase in orders in Europe, Middle East,
America – primarily South America – and South East
Asia. Order levels in Russia fell as the crisis there escalated further and some states imposed extensive sanctions.
Annual figures
EagleBurgmann sales in the 2014 financial year ran at
€765.8 million (previous year: €760.1 million). Negative
exchange rate effects, particularly with reference to
the Japanese yen, had a significant impact on
EagleBurgmann‘s sales.
A focus on final-user business and selective investments in
the international project business lifted the operating result.
The headcount at December 31, 2014 was 5,908
(previous year: 5,881 employees).
48
Furthermore, the Business Group systematically continued
with its established cost and liquidity management in the
year under review.
Key events
The expansion joints unit won a major order in 2014 for
delivery in 2015. Following the relocation of production
at EagleBurgmann KE, Inc., Hebron, Kentucky, USA, a
subsidiary of EBI Atlantic AIS, Vejen, Denmark, to the
new location in Lakeside, California, USA, this order
resulted in high capacity utilization.
In addition, EagleBurgmann also won the tender for the
“Nghi Son” international refinery project in Vietnam. This
project will significantly increase the Business Group‘s
market penetration in Vietnam.
Developments in the Business Group‘s markets became
increasingly positive as the 2014 financial year progressed. In India in particular, market conditions recovered after the parliamentary elections as infrastructure
investment in the energy and refinery sector resumed
EagleBurgmann is seeking to respond to customer needs
even more effectively and to meet the shorter delivery
times expected by the market. To achieve that, processes
were optimized further with a view to improving the process chain from receipt of the customer‘s order through to
delivery. Another key issue was the centralization of order
activities and order acceptance. ERP (enterprise resource
planning) has now been rolled out at the main production
sites in Germany and Japan.
Profile:
EagleBurgmann figures among the internationally leading
companies for industrial sealing technology. The Business
Group manufactures and markets a broad range of highquality products – from individual designs right through to
large-batch productions, irrespective of whether these are
highly complex dynamic seal systems such as mechanical
seals and supply units or special gaskets for a diversity of
applications and sectors of industry. A workforce of around
6,000 employees in about 70 subsidiaries develops and
produces EagleBurgmann seal solutions which customers
around the world can rely on. A close-knit global sales and
service network testifies to an international presence and
customer proximity. The products are installed wherever
safety and reliability are major design considerations when
sealing demanding mediums under the most challenging
technical conditions, for example in the oil and gas, refinery,
chemical, pharmaceutical, energy, food processing, paper,
water, shipbuilding, aerospace and mining industries.
Austria, Brazil, China, Denmark, Germany, India, Italy,
Japan, Mexico, Turkey, USA
EagleBurgmann Germany GmbH & Co. KG
Äußere Sauerlacher Straße 6–10
82515 Wolfratshausen | Germany
Phone: +49 8171 23-0
Fax: +49 8171 23-1214
E-mail:info@eagleburgmann.com
www.eagleburgmann.com
Mechanical seals, gas lubricated seals, carbon floating ring
seals, magnetic couplings, seal supply systems, stuffing box
packings, flat gaskets, expansion joints, TotalSealCare® Services; environmentally compatible solutions, standardization
of sealing systems and application testing; after-sales service
with assembly, commissioning, repair and damage analysis,
sealing technology seminars and practical training
49
Helix Medical
2013
Sales [€ million]
104.8
2014
116.4
Workforce
849
990
Helix Medical
Key events
The Business Group developed proprietary technologies
in strategic areas, i.e. technologies where the Business
Group owns the intellectual property rights. Examples
include improved sealing systems for drug dosage
devices, innovative catheter solutions used during surgery,
and new voice restoration products.
In addition, process technologies such as those used in
the manufacture of braided reinforced tubing for highpressure applications or extrusion methods with improved
error tolerance were refined further.
Annual figures
Helix Medical grew sales in 2014 to €116.4 million
(previous year: €104.8 million). Growth is primarily
attributable to projects with major OEMs and higher order
levels in strategic areas such as special components,
minimally invasive solutions and innovative ear, nose and
throat devices.
At year-end, the Business Group had a headcount of
990 (previous year: 849 employees).
The Business Group serves the majority of the largest and
most important global manufacturers of medical devices
and instruments. In the USA, Helix Medical‘s largest sales
market, approximately eight million Americans signed
up for health insurance under the “Patient Protection and
Affordable Care Act“. Companies such as Helix Medical,
which market technology-based solutions efficiently, will
benefit from this development.
50
Major investments included the extension to the building
at the facility of VistaMed Ltd., Carrick-on-Shannon,
Ireland, in which Helix Medical holds a 50 percent share.
The construction project includes a new cleanroom for
thermoplastic extrusion and a technical laboratory for
product design and development.
Helix Medical received FDA approval (US Food and
Drug Administration) for two medical device production
facilities in the USA and Costa Rica.
In 2014, Helix Medical again focused on the integration
of MedVenture Technology Corporation, Jeffersonville,
Indiana, USA, acquired in 2012. The Business Group
concentrated in particular on standardizing processes and
methods and was thus able to launch a global ERP system
at the first production facility.
The Business Group set benchmarks in HSE, winning the
internal Freudenberg Safety Excellence Award.
Profile:
Helix Medical is a leading global manufacturer of components for medical devices used in the biotech, healthcare
and pharmaceutical industries, as well as in vitro diagnostics. The Business Group runs more than ten medical
manufacturing operations located within the USA, Europe,
South America and Asia. Helix Medical provides custom
manufacturing services for medical devices, components,
and subassemblies – from a single component program
to turnkey contract manufacturing. In addition to its custom
manufacturing operations, Helix Medical also manufactures and markets the HelixMark® brand of platinum-cured
silicone tubing and fluid handling components for the
pharmaceutical and biotech industries. The medical device
division called InHealth Technologies develops and manufactures Blom-Singer™ voice restoration products that are
distributed worldwide.
Thermoplastic molding, silicone molding (HCR, LSR),
silicone and thermoplastic extrusions, complex diagnostic
and therapeutic catheters, assembly, packaging, sterilization, and engineering services
Locations
China, Costa Rica, Germany, Ireland, USA
Helix Medical, LLC
1110 Mark Avenue
Carpinteria, California 93013 | USA
Phone:+1 805 684-3304
Fax: +1 805 684-1934
E-mail:info@helixmedical.com
www.helixmedical.com
51
Diamond coating against corrosion
Find out more here
52
Power plants are highly sensitive. The amount of steam delivered to these systems must bevery precise to ensure
that they produce electricity and heat at optimal levels.
Feedwater pumps play a central role in achieving this. Their ceramic seals are placed under extreme chemical
stress by the feedwater. However, by coating the ceramic rings with an innovative and extremely thin layer of
microcrystalline and electrically conductive diamonds, a technology developed by EagleBurgmann, their durability
can be vastly increased.
A working life of 16,000 operating hours or even more is achievable – at least eight times longer than before.
53
TrelleborgVibracoustic [pro-rata]
2013
Sales [€ million]
839.7
2014
889.6
Workforce
4,131
4,510
TrelleborgVibracoustic
Despite continued high competitive pressure,
TrelleborgVibracoustic successfully defended its position
as the market leader in the field of automotive vibration
control technology. The Business Group‘s organic sales
growth clearly outperformed the market segment for antivibration solutions. Growth was highest in the Asia/Pacific
region, followed by Europe and North America. Brazil
was the only country where continued weak demand
and declining production at the largest customers resulted
in a sharp year-on-year decline. TrelleborgVibracoustic
therefore rolled out a restructuring program at its Brazilian
plants in order to achieve a swift turn-around in Brazilian
business.
Annual figures
TrelleborgVibracoustic recorded substantial sales
growth in the 2014 financial year, with sales totaling
€1,779.3 million (previous year: €1,679.5 million), and
achieved a noticeably higher operating result compared
with the previous year. Based on the 50 percent shareholding, pro-rata sales attributable to Freudenberg amount
to €889.6 million (previous year: €839.7 million).
The pro-rata headcount for Freudenberg increased to
4,510 (previous year: 4,131 employees). The increase is
above all due to the appreciable increase in business in
the Asia/Pacific region and the integration of joint ventures
in India and Turkey which was completed in 2014.
54
Order development was generally positive. Apart from
new orders for global platforms, the company was particularly successful in winning orders for innovative vibration
control solutions in emerging markets.
Jaguar Landrover will be using air springs from
TrelleborgVibracoustic in one of its SUVs for the first time,
introducing this technology in the new Evoque XL. Start
of production is scheduled for 2016. The customer was
impressed by the cross-axial bellows design, the first
time this design has been used in the automotive sector.
The robust technology ensures particularly high driving
comfort. Series production of the Porsche Macan, which
features the first air spring for the compact SUV segment –
a TrelleborgVibracoustic development – also got off to
a very successful start. After a development time of just
two-and-a-half years, the result is best-in-class handling
with excellent comfort, regardless of loading conditions.
Furthermore, the Engine Mounts Business Area established
itself with Jaguar Landrover as sole supplier for all engine
mount systems for the Evoque, Freelander, Range Rover
and Range Rover Sport models for a ten-year period.
Key events
TrelleborgVibracoustic began series production of
numerous innovations or engaged in promising customer trials involving innovative technologies during the
period under review. There have already been several
expressions of interest in a new chassis mount made of
two different elastomer compounds. This “DualRubber”
mount insulates road noise excellently, and controls
low-frequency axle vibrations more effectively. A special
production process, in which the elastomers are injected
simultaneously using two different rubber compounds, is
used to manufacture the mount. With its new DualRubber
mount, TrelleborgVibracoustic is offering an attractively
priced alternative to conventional chassis bushings and
more expensive hydraulic mounts. It is also highly suitable
for electric cars and hybrids, in which there is no combustion engine to drown out other noises, meaning higher
acoustic demands on the chassis.
Another innovation theme is the use of plastics to cut
costs and reduce weight. TrelleborgVibracoustic already
manufactures plastic-design engine mounts for RenaultNissan and the PSA Group (Peugeot) which not only have
excellent resistance to corrosion, but also weigh 30 percent less as well as being significantly less expensive than
the steel versions. A hydraulic rear axle support bearing
with a glass-fiber reinforced laser welded housing, which
also weighs 30 percent less than the comparable metal
design, was developed for BMW with series production
getting underway in 2015. These arguments have also
convinced GM, the world’s third-largest auto manufacturer, who will be using TrelleborgVibracoustic’s plasticdesign engine mounts from 2015.
The new corporate strategy signed off at the beginning of
2014 lays the foundation for sustained profitable growth.
Under this strategy, TrelleborgVibracoustic will not only
develop innovative solutions for products, processes
and materials as well as comprehensive measures to
raise efficiency and cut costs, but also design a portfolio
management with the aim of extending the competitive
edge, for example through targeted expansion in Asia.
TrelleborgVibracoustic doubled production capacity at
the Yantai plant in order to meet the needs of customers
on the fast-growing Chinese market even more effectively.
The Yantai extension was inaugurated in November
2014. Construction of additional production capacity for
microcellular polyurethane components is in full swing at
the Wuxi facility, which also houses the R&D Center for
the Asia/Pacific region. Work on building a production
facility in Thailand also commenced. Engine mounts, chassis components and dampers for the Thai market will be
manufactured at the Rayong site in close proximity to Ford,
Suzuki and other OEMs from the second quarter of 2015.
55
Location changes
TrelleborgVibracoustic continued to improve processes
and structures and further optimize the global network
of development and manufacturing locations in the
2014 financial year in response to permanent competitive pressure and growing demands from customers for
competitive prices and quality. Various measures were
initiated to improve competitiveness at facilities in Europe
in particular, the region with the highest sales where
TrelleborgVibracoustic operates a very broad production
network. The phased introduction of the “focussed factories“ concept is designed to reduce production complexity
and increase efficiency further. Under this concept, sites
focus on their core competences; the production program
at each location is designed to focus on two business
areas.
In future, the plants at Martorell, Spain, and NantesCarquefou, France, will concentrate on manufacturing
components for the engine mounts and chassis mounts
business areas. The German facility in Breuberg is to focus
on engine mounts and microcellular polyurethane components, while Neuenburg will concentrate on torsional vibration dampers and various isolators and dampers. In line
with the focused factory concept, production programs for
other business areas previously served by these facilities
will be relocated to other sites in the European production
network. The relocation of the production of components
for heavy trucks from Forsheda, Sweden, was completed
in the period under review. Going forward, this site will
focus on manufacturing isolators and dampers.
56
Profile:
Trelleborg Vibracoustic is a worldwide market and technology leader for antivibration components and modules
for the global automotive industry. The company’s portfolio
of products for passenger cars and commercial vehicles
is unique on the automotive market. These pioneering products reduce unwanted vibration and noise and improve
ride comfort.
Engine mounts, transmission mounts, components for chassis, air springs, torsional vibration dampers, isolators and
dampers, MCU (microcellular urethane) jounce bumpers
Locations
Brazil, China, Czech Republic, France, Germany, Hungary,
India, Japan, Mexico, Poland, Romania, Russia, South
Africa, South Korea, Spain, Sweden, Thailand, Turkey, USA
TrelleborgVibracoustic GmbH
64293 Darmstadt | Germany
Phone:+49 6151 3964-0
Fax: +49 6151 3964-444
E-mail:contact@tbvc.com
www.tbvc.com
NONWOVENS AND FILTRATION BUSINESS AREA
In the 2014 financial year, the Nonwovens and Filtration Business Area comprised the following Business Groups:
Freudenberg Politex Nonwovens
In total, the Business Area generated sales of €1,279.1 million (previous year: €1,227.9 million) in 2014. At year-end
2014, the headcount was 5,994, compared with a headcount of 5,707 at the close of the previous financial year.
The major markets for the Business Area are textile and apparel, automotive, energy, health, horticulture, agriculture,
and construction.
Freudenberg NONWOVENS
and the positive effects of restructuring in the Interlinings
Division in Germany.
The Business Group‘s headcount at December 31, 2014
was 3,249 (previous year: 3,193 employees).
Developments in the Spunlaid Division included among
other things a three-year extension to a contract with a
global key account; this played a central role in securing
future business in this segment. In the USA, Freudenberg
Spunweb Company, Durham, USA, reported a record
year. Sales growth there was in particular attributable to
the automotive and carpet tiles business.
Annual figures
In 2014, Freudenberg Nonwovens generated sales of
€682.7 million (previous year: €660.0 million). Organic
sales growth helped offset exchange rate losses. Profitability rose on the back of higher sales, an improved margin
Business with Evolon® grew worldwide. In the USA,
Evolon® successfuly gained a foothold with car manufacturer Ford and features prominently in sound absorption
in the Ford Transit.
In the medical technology business, Freudenberg
57
2013
Sales [€ million]
660.0
2014
682.7
Workforce
3,193
3,249
Nonwovens reported a substantial increase in sales of
advanced wound care products in 2014.
showed great interest in the R&D project for Lutraflor®
automotive carpets.
The Interlinings Division recorded moderate growth in
Europe, benefiting from market recovery in southern
Europe, in particular Italy and Spain. In particular the crisis
in Ukraine curbed growth in the second half of the year.
Advanced wound care is a future-oriented pillar for
Freudenberg Nonwovens. In recent years, new customers
have been won and in-house production capacity established and expanded. The goal now is to further extend
the product portfolio by adding new technologies.
Sales of woven, knit and nonwoven interlinings in the industrial apparel segment rose. The menswear initiative resulted
in increased sales of woven and knit products.
A series of product innovations contributed to growth in the
year under review. The main growth drivers were elastic
interlinings and innovative paddings as a substitute for
down as well as optimized product positioning in key markets. Vlieseline final user products once again developed
very well.
Key events
Freudenberg Nonwovens increased investment in the Spunlaid Division during the year under review, thus enabling
the division to safeguard the development of new products
that satisfy growing market demands. Such developments
included a bicomponent spunlaid which supports the
Freudenberg Filtration Technologies Business Group with its
strategy to expand business in automotive intake air filters.
Furthermore, the facility in Jacareí, Brazil, which manufactures nonwovens for the hygiene industry was expanded.
With regard to spunlaid business in Europe, Freudenberg
Nonwovens concentrated on growth in core applications
and harnessing new business opportunities in fields such
as automotive headliner systems. Furthermore, the market
58
The Business Group acquired Polymer Health Technology
Limited, Ebbw Vale, UK, a leading specialist of polyurethane foams for advanced wound care in January 2015.
Foam solutions are a key technology in advanced wound
care. The hydrophilic foam systems from Polymer Health
Technology Limited absorb wound exudate, creating an
ideal environment for wound healing.
The Business Group acquired the companies which
operate the interlinings business of the Hänsel brand from
Hänsel Textil GmbH in August 2014. Hänsel is a highquality and innovative interlinings specialist for the international fashion industry. With the acquisition, Freudenberg
is extending its position as a global leader in the field
of interlinings. At the same time, the transaction gives
Freudenberg deeper access to the knit product segment
as well as bringing further growth opportunities.
The introduction of the innovative “A” adhesive technology during the year under review offers Freudenberg‘s
customers high-performance and reliable interlinings.
Innovations for the apparel industry included nonwovens
with high transverse stretch and no warp fringe. Printed
interlinings – interlinings with a customized print – offer
Freudenberg’s customers new openings for individualization or branding.
The Interlinings Division will return to operating as a global
division from 2015, bringing together all regions. Global
management allows Freudenberg Nonwovens to serve its
customers in the global apparel industry more effectively
and efficiently.
Location changes
In New York City, USA, the Interlinings sales office relocated to the historic Garment District in August 2014. That
is where all US customers who are active worldwide are
located.
As part of the organizational realignment of the
Freudenberg Group, Freudenberg Nonwovens and
Freudenberg Politex Nonwovens, formerly two independent Business Groups, were brought together to form a
new Business Group called Freudenberg Performance
Materials. As a leading global supplier, Freudenberg
Performance Materials offers its customers in markets
such as apparel, automotive interiors, building materials,
energy, filtration, hygiene and medical innovative, forward-looking solutions.
from Freudenberg offer the highest comfort and safety.
Freudenberg was one of the first companies to introduce
nonwovens on the market and continues to set the global
standard with a constant stream of new ideas such as
Lutraflor ®, SoundTex ® and Vildona®. Freudenberg
Nonwovens operates a global sales network and manufactures at 20 locations worldwide. The company has
enjoyed very close cooperation with Japan Vilene
Company Ltd., Tokyo, Japan, the Japanese market leader
in nonwovens, for many decades.
Interlinings, industrial nonwovens, spunlaid
Argentina, Brazil, China, France, Germany, India, Italy,
South Africa, South Korea, Spain, Taiwan, UK, USA
Freudenberg Vliesstoffe SE & Co. KG
Phone:+49 6201 80-5009
Fax: +49 6201 88-5009
E-mail:info@freudenberg-pm.com
www.freudenberg-pm.com
Profile:
Freudenberg Nonwovens develops, produces and
markets nonwoven products for a wide range of applications. These products are used as interlinings for the
garment industry and for technical applications such as
battery separators, for acoustic purposes to provide
sound absorption, as fireblockers in furniture and as cable
insulation. In the medical and hygiene sector, nonwovens
59
Ultra-thin nonwovens let the ions flow
Find out more here
60
Electricity from rechargeable batteries is essential to modern life. Without it, hardly anything functions. Whether in
cell phones, laptops, electric cars or e-bikes, rechargeable batteries are a crucial component.
They need to be powerful, durable and – above all – safe. Freudenberg’s wafer-thin yet extremely durable
nonwoven separator with a functional ceramic impregnation keeps the positive and negative poles permanently
separated from each other.
This minimizes the risk of short circuits or even battery fires while allowing the ions and thus the electricity to flow
freely.
61
Freudenberg Politex Nonwovens
2013
Sales [€ million]
220.0
2014
223.3
Workforce
572
561
Freudenberg Politex NONWOVENS
products, and improved productivity and efficiency as a
result of the restructuring measures at the Italian sites.
The Business Group was able to defend its world leading
position in the market for polyester-based roofing materials thanks to its broad range of quality products, the
know-how in both spunbonded and staple fiber technologies, and close customer relations all over the world.
Key events
Annual figures
In 2014, Freudenberg Politex Nonwovens generated
sales of €223.3 million (previous year: €220.0 million).
The headcount at December 31, 2014 was 561 employees
(previous year: 572).
Regional developments in the construction sector in 2014
were mixed. Western Europe developed relatively well
during the first half of the year, but this was followed by a
downturn which gathered pace as the second half of the
year progressed. In North America, on the other hand,
growth continued throughout the year. Russia had to contend with a weak domestic economy attributable in part
to the crisis in Ukraine. Other markets such as Turkey or
the Middle East showed continued growth brought about
by the need to expand and modernize infrastructure.
Freudenberg Politex Nonwovens reported positive business development during the year under review thanks to
the successful marketing of the newly-developed special
62
Freudenberg Politex Nonwovens offers customers solutions with added value by combining complementary
products and services. During the year under review, the
Business Group continued to work hard on expanding
the product range by adding innovative special products
for roofing materials and the construction industry.
A production line in Pisticci, Italy, was modified to manufacture fiberglass reinforced spunbonded nonwovens for
flat roof applications.
Another production line in Pisticci was upgraded to
manufacture nonwoven roofing reinforcements for pitched
slate roofs; this is an attractive market segment where the
Business Group is looking for growth going forward.
Furthermore, Freudenberg Politex Nonwovens also optimized the supply chain, reduced raw material consumption, simplified processes, improved energy efficiency and
further raised product quality in the year under review.
The Business Group became even more sustainable and
efficient in terms of resource management. The “Zero
Landfill“ project continued at all sites. The objective is to
recycle waste and reduce landfill. Landfill at the Colmar,
France, facility fell by 20 percent year-on-year.
Freudenberg Politex Nonwovens, formerly two independent Business Groups, were brought together to form a
new Business Group called Freudenberg Performance
Materials. As a leading global supplier, Freudenberg
Performance Materials offers its customers in markets
such as apparel, automotive interiors, building materials,
energy, filtration, hygiene and medical innovative, forward-looking solutions.
Profile:
Freudenberg Politex Nonwovens, headquartered in
Novedrate, Italy, is the world leader in the production and
marketing of polyester nonwovens, mainly used as reinforcements for bituminous roofing membranes. A broad
range of products is furthermore sold to the construction
industry for different applications. Technical polymers used
as bitumen modifiers round off the product program.
thermal insulation, sound absorption, heat reflection,
drainage, reinforcements and other applications
Polymers: Plastomer compounds made of recycled materials used as modifiers in bitumen impregnation, polyester
fibers and flakes
Locations
China, France, Italy, Poland, Russia, USA
Freudenberg Politex S.r.l.
Strada Provinciale Novedratese 17/a
22060 Novedrate (CO) | Italy
Phone:+39 031 793-111
Fax: +39 031 793-202
E-mail:info@freudenberg-pm.com
www.freudenberg-pm.com
A large share of these products are manufactured with
recycled polyester obtained in-house from post-consumer
PET bottles. Freudenberg Politex Nonwovens is the largest
recycler of PET bottles in Europe and converts over seven
million bottles daily into polyester fibers at production
plants all over the world. This integrated production cycle
not only recycles waste, but also significantly reduces CO2
emissions.
Roofing: Staple and spunbonded polyester nonwovens
(standard or glass filament reinforced) used as backing
for bituminous roofing membranes
Construction materials: Products for waterproofing,
63
2013
Sales [€ million]
347.9
2014
373.1
Workforce
1,942
2,184
productivity at plants, systematic cost, inventory and
receivables management as well as a continuous improvement program.
At year-end, Freudenberg Filtration Technologies
employed 2,184 employees (previous year: 1,942).
In 2014, very good sales growth in Europe and China
contrasted with developments in South America, Australia
and South Africa which were characterized by challenging economic factors and unfavorable exchange rates.
In industrial filtration, Freudenberg Filtration Technologies further expanded business with Viledon® filter
elements and service contracts in technically demanding
segments.
Annual figures
Freudenberg Filtration Technologies reported sustained
growth in its market positon during the year under review
and generated sales of €373.1 million (previous year:
€347.9 million).
The Business Group made good progress in profitability on the back of the higher sales volume, increased
64
Furthermore, the Business Group won and concluded key
major orders for system solutions; these projects included
complete air filtration systems for offshore oil platforms
in Brazil, filtration systems for a hospital in Spain, and
several project orders for efficient, resource-saving waste
water treatment in the UK food and beverage industry.
Demand for micronAir® cabin air filters, both as original
equipment in new vehicles and on the aftermarket, increased in all regions, with appreciable growth in China,
North America and Europe.
The Business Group successfully defended its worldleading market position despite a very challenging competitive environment.
Key events
Freudenberg Filtration Technologies acquired the industrial activated carbon corrosion protection business of the
American company MeadWestvaco Corporation headquartered in Richmond, Virginia, USA, in November 2014.
The air purification product portfolio of this leader in
high-quality activated carbon technologies acquired by
Freudenberg Filtration Technologies comprises activated
carbon pellets, Honeycomb® modules, which include the
innovative Versacomb™ technology, and system solutions.
The new products complement Freudenberg Filtration
Technologies’ existing globally available range of quality
gas phase filtration solutions. With its Viledon® ChemControl system solution for gas phase filtration, the Business
Group offers protection from harmful corrosion.
Pulp and paper producers, refinery operators and customers in the chemical and pharmaceutical industries benefit
from a complete clean air solution, tailored to each
specific application. Freudenberg takes care of all aspects
of filter system design and construction, including matched
filter stages for particulate and noxious gas filtration. In
addition, the company offers a comprehensive range of
technical support services.
Worldwide, the need for high-performance, energy-efficient
filtration solutions for clean air and clean water is growing.
Freudenberg Filtration Technologies is planning to increase
sales in these growth markets on a larger scale than in
the past by extending its market position in attractive core
segments, thereby lifting profitability further.
During the year under review, the Business Group laid the
organizational foundations for realigning its organizational
structure effective January 1, 2015. The former organizational structure with its pronounced regional focus was
transformed into a divisional structure geared to customers
and markets.
To that end, Freudenberg Filtration Technologies set up
two global divisions – “Automotive Filters“ and “Industrial
Filtration“. The present “Water Solutions” global segment
remains in operation and is to undergo expansion.
Production facilities were separated from the divisions
and put under a single global management with a view
to improving the coordination of development activities
and the deployment of manufacturing technologies and
plant concepts as well as achieving greater synergies in
process and productivity optimization.
65
Location changes
In response to increasing demand for micronAir® cabin air
filters, the Business Group commissioned a new logistics
center at the Kaiserslautern site. The newly-created close
proximity of production and logistics is one contributory
factor in meeting customers’ growing demands regarding
product availability and delivery flexibility.
Westpfalz-Werkstätten, an institution for the occupational
and social integration of people with disabilities, took
charge of the manual assembly and packaging tasks from
mid-2014. A building was therefore modified and made
accessible for disabled people; it is equipped with light,
friendly workstations for up to 40 people.
As a result of the acquisition of the Indian company
Freudenberg Filtration Technologies India Private Limited,
Pune, India, in 2012, the Business Group operated two
facilities in India, which were brought together at a new
site in Sanaswadi, Pune District, at the middle of the year.
66
Profile:
As a global technology leader in air and liquid filtration,
Freudenberg Filtration Technologies develops and produces high-performance, energy-efficient filtration solutions
which improve the efficiency of industrial processes,
conserve resources, protect people and the environment
and thus enhance the quality of life. With its Viledon® and
micronAir ® global brands, Freudenberg Filtration Technologies offers customers innovative filter elements and
systems for the energy, health, and transport (automotive,
rail, marine, aviation) sectors, general ventilation and
cleanroom technology, and for highly-specialized applications. Viledon® stands for reliable process air optimization and high-quality liquid filtration solutions. micronAir ®
cabin air filters provide health protection and ride comfort, micronAir ® engine intake air filters improve engine
performance.
Products to improve indoor air quality in buildings, and a
comprehensive range of system solutions (e.g. development and construction of air intake systems) and services
(e.g. Viledon® filterCair air quality management) round off
the product portfolio.
Filtration elements, system solutions and services for intake
and exhaust air in industrial processes and end user
applications, water and membrane filtration systems, cabin
air filters and engine intake air filters; filter measurement
technology; training and consulting
Argentina, Australia, Brazil, China, Germany, India, Italy,
Japan, Mexico, Slovakia, South Africa, South Korea,
Thailand, USA
Freudenberg Filtration Technologies SE & Co. KG
Phone:+49 6201 80-6264
Fax: +49 6201 88-6299
E-mail:info@freudenberg-filter.com
www.freudenberg-filter.com
67
The criss-cross path to cleanliness
Find out more here
68
More and more people have less and less time – even for keeping their homes clean. So the ViRobi dusting robot
from Freudenberg Home and Cleaning Solutions is definitely good news.
Powered by a rechargeable battery, it navigates autonomously round the floors, wiping them clean with its
electrostatic dusting cloth. Clever axle geometry and suspension remove the need for high-tech navigation and
enable ViRobi to negotiate obstacles or corners.
The result: effort-free cleanliness, right into the farthest corner.
69
HOUSEHOLD PRODUCTS BUSINESS AREA
The Household Products Business Area comprises the Freudenberg Home and Cleaning Solutions Business Group
whose vileda®, O-Cedar ®, Wettex®, Gala®, Marigold® and SWASH® brands are active in the mechanical cleaning
and laundry care segment for final users and professional cleaning companies.
Freudenberg Home and Cleaning Solutions
reported solid growth. The conflict in Russia and the political crises in some areas of the Middle East did, however,
impact market growth in the relevant countries.
The Business Group responded to the challenging market
situation with acquisitions, product innovations and growth
initiatives, thereby improving the market position and
achieving local currency sales growth in almost all regions.
Adjusted for exchange rate, acquisition and consolidation
effects, the Business Group outperformed the market in
terms of growth.
Key events
Annual figures
During the year under review, the Business Group generated
sales of €760.2 million (previous year: €710.4 million).
Currency effects had a negative impact on sales.
The headcount at December 31, 2014 was 2,880 employees
(previous year: 2,914).
There was a slight improvement in the market environment
for Freudenberg Home and Cleaning Solutions in 2014.
While the markets in southern and eastern Europe declined
due to the effects of the debt and financial crisis, the North
America, Asia/Pacific, Middle East and India regions
70
During the year under review, Freudenberg Home and
Cleaning Solutions focused on expanding business
substantially in the growth regions of Asia/Pacific, India,
Middle East, and North America, on launching product
innovations with the associated advertising activities and
significantly improving the distribution basis with strategic
retail partners. vileda® was launched in Thailand, Malaysia and Indonesia, the innovative “No Dust” broom made
its market debut in India, the pan-Arabian advertising campaign was successfully continued in the Middle East, and
the new vileda® Home product and sales model kicked
off in Germany. The Business Group also expanded its
e-commerce activities by over 50 percent in all regions.
Freudenberg Home and Cleaning Solutions acquired the
Marigold® household gloves business from Comasec SAS,
Freudenberg Home and Cleaning Solutions
2013
Sales [€ million]
710.4
2014
760.2
Workforce
2,914
2,880
Gennevilliers, France, in January 2014 and successfully
integrated the business in the UK, Ireland, Italy, Netherland, Hong Kong and Japan. Comasec SAS is a company
belonging to the Dutch Ansell Group, a world leader in
protective glove solutions for industrial applications.
The business of Freudenberg Home and Cleaning Solutions
in Croatia and Taiwan was transferred to a distributor.
Freudenberg Home and Cleaning Solutions developed
several new, award-winning products and upgraded
existing product lines in the year under review. These
included the Easy Wring & Clean cleaning system, the new
cleaning robot lines, the Magical cloth and spray system
for cleaning glass with its “stays cleaner longer” concept,
the innovative polyvinyl alcohol (PVA) microfiber generation
of cloths, and the new cable and cordless steam cleaners.
The Glitzi product line was voted the top brand of 2014 by
the food trade press and “Lebensmittel Praxis”, a specialist journal for the food industry, voted the vileda® RELAX
cleaning robot its product of the year 2015.
Location changes
The plants in Vaughan, Canada, and Suzhou, China, were
closed in 2014.
The Business Group‘s success factors are detailed knowledge of the market, innovations, new and effective products, and a pronounced customer orientation. These
are complemented by international market and customer
research, innovation centers and production facilities in all
regions of the world and a dedicated sales network in over
35 countries.
Floor cleaning systems, household cloths, cleaning articles,
household gloves, mats, laundry care products such as
ironing boards and clothes driers, cleaning systems for
professional applications
Locations
Australia, Belgium, Canada, Chile, China, Croatia, Czech
Republic, Denmark, Finland, France, Germany, Greece,
Hong Kong, Hungary, India, Indonesia, Italy, Jordan,
Malaysia, Mexico, Netherlands, New Zealand, Norway,
Poland, Portugal, Russia, Serbia, Slovenia, Spain, Sweden,
Taiwan, Thailand, Turkey, UK, USA
Freudenberg Home and Cleaning Solutions GmbH
Im Technologiepark 19
Phone:+49 6201 80-871000
Fax: +49 6201 88-874000
E-mail:info@fhp-ww.com
www.vileda.com
Profile:
Freudenberg Home and Cleaning Solutions is one of the
leading international manufacturers of brand cleaning articles and systems and laundry care products. The company is
the market leader in almost all countries.
Products are marketed under the brand names of vileda®,
O-Cedar ®, Wettex ®, Gala®, Marigold® and SWASH®.
71
SPECIALTIES AND OTHERS BUSINESS AREA
The Specialties and Others Business Area mainly comprises the following Business Groups:
Freudenberg IT
enmech
During the year under review, the companies in this Business Area generated sales of €1,135.1 million (previous year:
€1,053.6 million). At year-end 2014, the headcount was 4,515 compared with 4,359 at year-end 2013. Well over
half of the sales generated by this Business Area are attributable to the Freudenberg Chemical Specialities Business
Group, which supplies the automotive and mechanical and plant engineering industries as well as many other sectors.
Freudenberg IT is an IT service provider primarily serving small and medium-sized enterprises in various branches of
industry and the trade sector. The enmech Business Group manufactures products mainly for the automotive industry,
including mechatronic solutions based on large flexible printed circuits.
The headcount rose from 3,107 in the previous year to
3,216.
Freudenberg Chemical Specialities continued on its longstanding growth trajectory in 2014. The Business Group
reported appreciable sales growth in almost all market
segments and regions. Freudenberg Chemical Specialities
strengthened its market position during the year under
review in part through acquisitions - and the associated
expansion of the portfolio - and in part as a result of the
global presence in all key markets.
Annual figures
The Business Group generated sales of €881.4 million
(previous year: €797.6 million) in 2014. Negative
currency effects prevented an even stronger rise in eurobased sales.
72
The automotive suppliers, traffic engineering, wood,
marine, food, surface technology, die casting, polyurethane and renewable energy market segments were
once again key pillars for the Business Group. Its strategic
2013
Sales [€ million]
797.6
2014
881.4
Workforce
3,107
3,216
innovation management keeps Freudenberg Chemical
Specialities highly attractive for customers who prefer partners for projects with a medium- or long-term perspective
over and above current project and service requirements.
Freudenberg Chemical Specialities successfully concluded
the integration projects to strengthen the market position –
both regional and segmental – as well as the complete
realignment of the brand positioning.
The forward-looking internationalization strategy oriented
to market opportunities which has been practiced for
many years led to balanced business development in
the regions. Germany remained one of the most important core markets in the year under review. Western and
eastern Europe were also reliable sales generators with
further growth potential.
Under the long-term buy and build strategy, Freudenberg
Chemical Specialities purchased minority shares in the
SurTec companies in Portugal and Japan – this had a
positive impact on sales developments in 2014.
Freudenberg Chemical Specialities companies in southern
Europe outpaced macroeconomic growth, but could not
realize their full potential due to poor local conditions. The
Business Group expanded its market position in North
America, in part thanks to targeted project work in selected focus segments.
Growth for Freudenberg Chemical Specialities in South
America was curbed by the difficult macroeconomic
conditions in Brazil and Argentina. Asia, and above all
China, remained the most Important growth region for
the Business Group thanks to the economic momentum in
the region and the good market position of Freudenberg
Chemical Specialities.
Key events
The acquisition of the shares of the Capol Group, a
world leading supplier of surface treatment products for
the confectionery industry, in 2013 marked the successful entry into the food additives industry – a sector with
significant growth potential. During the year under review,
As a result of the acquisition of selected strategic business
activities in 2013 – in the field of specialty release systems
for the composite industry at Chem-Trend and with regard
to PFPE specialty lubricants at Klüber Lubrication – both
segments recorded double-digit growth in the year under
review.
During the year under review, long-term investment policy
continued to focus on China, India and Brazil – despite
the differences in the scale of economic momentum - with
a view to strengthening the regional organizations and
expanding the technical infrastructure. Plant expansions
in India and China initiated in 2012 were (partly) commissioned. Construction work on the new plant at the
joint Chem-Trend and SurTec location in Valinhos, Brazil,
commenced.
Growing regulatory requirements, especially with reference to environmental compatibility and the associated
substitution of raw materials, are placing increasing
demands on the Business Group‘s research, development
and materials safety capabilities in particular.
Freudenberg Chemical Specialities is well positioned in
this respect, as illustrated by the following two examples:
73
Klüber Lubrication won the internal Freudenberg
Innovation Award for its “Energy Efficiency Solutions“
service concept, and SurTec was a winner in the Group‘s
“We all take care“ HSE initiative with its project to substitute non-toxic chromium (III) for substances containing
toxic chromium (VI) in surface coating technology.
Profile:
The Business Group comprises the largely autonomous
divisions of Klüber Lubrication, Chem-Trend, SurTec, OKS,
and Capol.
Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants. Its customized tribological
solutions are almost exclusively sold direct to customers in
virtually all industries and markets.
Chem-Trend is a world market leader for release agents
used to manufacture composite, rubber, plastic, metal
and polyurethane molded parts.
74
SurTec is a leading supplier of chemical specialties for
surface treatment and electroplating.
OKS specializes in performance lubricants and in repair
and maintenance products.
Capol is one of the world’s leading manufacturers of
coatings for the confectionery industry and supplies
glazes, release agents and sealing agents as well as
other specialty products.
Oils, greases, waxes, pastes, bonded coatings, dry lubricants, solid lubricants, anticorrosion products, chemotechnical products for MRO, hydraulic fluids, cleaning agents,
release agents for die casting, composites, rubber and
polymer processing, surface treatment products, industrial
parts cleaning and electroplating, glazes, release agents
and sealing agents for the confectionery industry
Locations
Argentina, Australia, Austria, Belgium, Brazil, Chile,
China, Croatia, Czech Republic, Denmark, Egypt,
Finland, France, Germany, India, Italy, Japan, Malaysia,
Mexico, Netherlands, Norway, Poland, Portugal,
Romania, Russia, Serbia, Singapore, Slovakia, Slovenia,
South Africa, South Korea, Spain, Sweden, Switzerland,
Thailand, Turkey, United Arab Emirates, UK,
USA, Vietnam
Freudenberg Chemical Specialities SE & Co. KG
Geisenhausenerstraße 7
81379 Munich | Germany
Phone:+49 89 7876-0
Fax: +49 89 7876-1600
E-mail:info@fcs-munich.com
www.fcs-munich.com
75
Energy savings through high-tech
lubrication
Find out more here
76
Freudenberg Innovation Award 2014 awardee
The power consumption of industrial plants is often enormous. “Energy Efficiency Solutions” from the Freudenberg
company Klüber Lubrication help increase the efficiency and costeffectiveness of such plants.
In an innovative measurement and evaluation process, the energy-saving potential of the system is first identified.
After optimization, the realized savings are then measured. This can often be a tough challenge. High-precision,
easyrunning specialty lubricants provide the basis for optimization. These advanced lubricants are used in place
of conventional oils and reduce friction between individual components.
The result: a proven reduction in energy consumption at increasing power levels.
77
Freudenberg IT
2013
Sales [€ million]
133.6
2014
136.2
Workforce
694
734
Freudenberg IT
Freudenberg IT’s three-year transformation program which
comprised many individual projects and significantly
improved the Business Group‘s competitiveness and future
viability came to an end on December 31, 2014.
Overall, Freudenberg IT became more global during the
year under review and strengthened its position as an IT
service provider through new strategic partnerships with
Cisco und NetApp. The new strategic partnership with
Cisco enables Freudenberg IT as a “CISCO Intercloud
Partner“ to provide global services even when Business
Group capacities are exhausted or, in exceptional cases,
not custom-tailored.
Annual figures
Freudenberg IT generated sales of €136.2 million
(previous year: €133.6 million) in the year under review.
The Business Group successfully converted the aboveaverage sales volume of the previous year into long-term
operating business on the back of numerous contract
extensions and customer acquisitions.
The Business Group had a headcount of 734 (previous
year: 694 employees) as at December 31, 2014.
The market for SAP products, a core area of business
for Freudenberg IT, once again outperformed the overall IT market. Global sales drivers included topics such
as SAP hosting in the cloud, in-memory computing with
SAP HANA, and template rollouts. In North America,
Freudenberg IT again reported strong growth and
earnings.
78
At the same time, the long-standing partnership with
SAP was further expanded and intensified. In parallel,
Freudenberg IT has extended its range of products and services from the Microsoft portfolio with a view to reducing
dependence on SAP. Numerous new certifications were
issued to Freudenberg IT under these strategic partnerships, thus further strengthening competitiveness.
Key events
In recent years, Freudenberg IT has positioned itself as
a pioneer of Industry 4.0. Now, Freudenberg IT is delivering the “FIT Shop Floor Suite” – the portfolio for this
megatrend. During the year under review, the Business
Group won customers such as L’orange, Danfoss and
Kion. With its innovative global cloud architecture, FIT is
in a position to offer customers all over the world uniform,
top security standards. In addition, customers can sign up
for “FIT Global Application Management Services” for
hosted applications; these services are provided round
the clock on the basis of binding service level agreements.
This makes Freudenberg IT a full service IT provider and
one-stop shop for customers. A further major event in the
year under review was the strategic restructuring of the
Chinese national organization, which has again returned
to profitability: Freudenberg IT Asia will in future focus
on global customers who need an IT service provider in
China.
The significant improvement in customer satisfaction is
particularly worthy of note. For the second year in a row,
there was a marked improvement in the TRI*M-Index
(Measuring, Managing und Monitoring). With an international index of 76 points, Freudenberg IT’s performance is
higher than the industry‘s international benchmark of 68
points, and the index of 70 points for Germany is also
higher than the industry‘s national benchmark. Over 25
contract extensions with existing customers such as BSN,
Karl Mayer, B+S Card Service and Berner confirm this
trend. 2014 also saw the acquisition of numerous new
customers such as the Wirtgen Group, the Good Mills
Group, Bilcare, Pentair and Stahlgruber.
The legal entity Freudenberg IT, S.A. de C.V. established
in 2013 in Mexico City, Mexico, was expanded. The
company with its workforce of 100 offers various IT and
application management services. Freudenberg IT’s
global footprint has thus become even larger, bringing
competitive advantages for the Business Group as a
midsized company.
from the Rhine-Main region. In addition, the Business
Group moved into a new data processing center in China.
Profile:
Freudenberg IT is a global, full-service IT provider with 30
years of excellence as a reliable partner for small- and
medium-sized industrial enterprises (SMEs). The portfolio
of services covers all facets of the modern SAP landscape,
from a variety of outsourcing offerings through system
optimization and system operating services to process
and SAP consulting. In particular for SMEs in the manufacturing and automotive industries Freudenberg IT is an
MES specialist (MES is the acronym for Manufacturing
Execution System), optimizing the integration between
production control and the ERP system, and is a pioneer
for Industry 4.0. The Business Group also offers cloud
computing solutions which Freudenberg IT customers can
use to outsource IT without any investment risk. That means
users are free to focus completely on their core business
without having to address IT issues.
Outsourcing, cloud computing, consulting for SAP
and MES
Locations
China, Germany, Mexico, USA
Location changes
Freudenberg IT further expanded its existing locations
in Germany and America during the year under review.
Furthermore, a new site in Eschborn, Germany, takes
Freudenberg IT closer to customers and gives the Business Group better access to highly-qualified employees
Freudenberg IT SE & Co. KG
Phone:+49 6201 80-8000
Fax: +49 6201 88-8000
E-mail:info@freudenberg-it.com
www.freudenberg-it.com
79
enmech [pro-rata]
2013
Sales [€ million]
23.2
2014
21.0
Workforce
174
187
enmech
hand, enmech recorded its biggest order ever in 2014.
Series production of the products commissioned under this
order begins in 2015 to 2017.
In the year under review the focus lay on achieving a
significant improvement in productivity and on the Business
Group’s restructuring process, which was successfully completed in the third quarter. All of the Business Group’s final
finishing activities are now located at the facility in Pécel,
Hungary. As a result, the supply chain has been greatly
simplified.
Key events
The Freudenberg NOK Mechatronics Business Group was
officially renamed enmech effective January 1, 2014. The
company sees itself as an enabler, in other words it prepares the way for customers with FPC-based mechatronic
products.
The brand name enmech was successfully launched on the
international market through a presence at trade fairs – in
particular at Electronica, the world’s leading trade show for
electronic components, systems and applications – through
publications, and through other communication measures.
Annual figures
In the fast-growing market for LED lighting, enmech won
orders for new, innovative light source modules for LED headlights based on the company’s hybrid flex technology. Key
characteristics of these new modules are optimal thermal
management and high-precision LED positioning.
Due to product phaseouts, enmech sales of €42.0 million
did not quite reach the €46.4 million sales level of the previous year – on the basis of the 50 percent pro-rata consolidation, sales of €21.0 million are reported for Freudenberg
(previous year: €23.2 million).
The headcount at year-end attributable to Freudenberg was
187 (previous year: 174 employees).
Business development in the battery segment continued to
be extremely positive. The Business Group won a further
OEM series order as well as development projects with all
major OEMs for the next generation of lithium-ion batteries
applications.
enmech sales in the year under review decreased slightly
as a result of the planned portfolio changeover from wiring
harnesses for doors to mechatronic products. On the other
80
There was very strong demand for flexible foil antennas.
These antennas can be fitted very successfully into any
space in a vehicle. In this context, integrated amplifier technology is gaining ground.
Profile:
enmech is a 50:50 joint venture between Freudenberg
and NOK Corporation, Tokyo, Japan. Business activities
range from the development and production of mechatronic solutions based on large flexible printed circuits,
ready-for-use SMD assembly flat wiring harnesses which
can integrate switches, sensors, LEDs and other functional
components, and connector technology. Experience in
research, development and production drawn from the
joint venture partners makes the company a competent
and reliable development partner and supplier, particularly for the automotive industry, module suppliers and
harness makers.
Mechatronic solutions based on large flexible printed
circuits including connector technology with the option
to integrate various functions; heating and antenna foils;
component assembly
Locations
Germany, Hungary
enmech GmbH & Co. KG
Phone:+49 6201 80-0
Fax: +49 6201 88-2069
E-mail:info@enmech.com
www.enmech.com
81
Report on POST-BALANCE SHEET DATE EVENTS
Freudenberg Politex Nonwovens, formerly two independent Business Groups, were brought together effective
January 1, 2015 to form a new Business Group called
Freudenberg Performance Materials.
Furthermore, Freudenberg Performance Materials
acquired Polymer Health Technology Limited, a leading
specialist of polyurethane foams for advanced wound
care with effect from January 2015. With this acquisition,
Freudenberg Performance Materials is further expanding
its portfolio in the medical technology sector.
82
Report on Post-Balance Sheet Date Events
REPORT ON RISKS AND OPPORTUNITIES
Freudenberg is exposed to numerous risks and opportunities inseparably associated with entrepreneurial action.
A risk management system is in place throughout the Freudenberg Group to help the company deal with risks.
Risk management system
The Freudenberg Group‘s risk management system is a
decentralized system oriented to the Group‘s organizational structure. The system covers all companies fully
consolidated in Freudenberg SE, and includes all Group
measures addressing the main risks. One such measure is
the Freudenberg risk management process. This process in
particular ensures the structured identification, assessment,
control and monitoring of main risks that might jeopardize
the continued existence of the company. The process also
includes appropriate risk communication and the continuous improvement of the risk management system.
The objective of the risk management system is the prompt
identification of risks that might jeopardize the continued
existence of the company and the initiation of appropriate
countermeasures. It is not the objective of the risk management system to avoid all potential risks, but rather to create
the leeway for taking a deliberate decision to enter into a
risk backed by a comprehensive knowledge of essential
information. Entrepreneurial action therefore also involves
identifying and harnessing opportunities and thus safeguarding and enhancing the company‘s competitiveness.
The Freudenberg Group‘s organizational structure was
developed further in 2014, and the risk management
system was adjusted accordingly. The Freudenberg risk
management process was revised and improved and
implemented in its new form throughout the Group. The
revised risk management process explicitly deals with
main risks identified at several levels and involving the
participation of several specialist functions, committees
and corporate bodies.
The risk management system - including its suitability and
effectiveness - is reviewed by Internal Auditing. In addition, the system is also reviewed regularly by the external
auditor.
Risks
The following chapter deals with risks classified as
significant or higher for the Freudenberg Group ranked
by their importance. These risks can have very differing
impacts. They may occur individually and independent
of one another or simultaneously. In all cases they have
the potential to impact directly or indirectly on the net
assets, financial position or results of operations of the
Freudenberg Group.
The risk management strategy is derived from the general
strategy of the Group.
Demand-side risks
The risk management strategy primarily addresses risks,
while opportunities are addressed in the context of the
annual planning process and monitored throughout the
year. Long-term opportunities for profitable growth are
primarily identified as part of the strategy process.
Freudenberg delivers challenging and innovative solutions
to customers in over 30 markets, some 60 countries and
thousands of applications. The broad diversification of
the Group reduces dependence on individual customers,
customer groupings, regions and countries. Nevertheless
83
Freudenberg is dependent on the general economic
situation, particularly with regard to general demand for
its products and services, and dependent on some major
customers. Even though the scale of this dependence
decreased compared with the previous year as a result
of the current economic situation and Group acquisitions, a slump in demand such as that experienced in
2008/2009, for example, could lead to a substantial
decline in sales and earnings and thus still exert a not
insignificant impact on Freudenberg.
The Freudenberg Group has implemented several measures to limit the negative effects of demand-side risks.
The company has, for example, high capacity flexibility
and practices active working capital management.
Freudenberg regularly monitors several success indicators
and can thus respond promptly to negative developments.
In terms of a long-term response to demand-side risks,
Freudenberg makes targeted investments in research and
development, in individual regions and customer relations
as well as selected strategic growth areas.
Legal risks
As a globally active manufacturer of functionally-relevant
technical components, specialty chemicals and final
user products as well as a service provider for industry,
Freudenberg is exposed to various legal risks, including
in particular product liability and warranty risks or risks
relating to competition and antitrust law, anti-corruption
regulations, export controls, intellectual property rights
(patent law), tax law and environmental protection. These
84
risks can affect Freudenberg in very different ways, such
as payments to third parties, fines or penalties. In extreme
cases, legal risks could have a very significant impact on
Freudenberg.
Freudenberg has many measures in place to respond to
these legal risks such as comprehensive quality assurance
mechanisms, clearly-defined product specifications, instructions, documentation or preventive contractual solutions
containing provisions to limit liability, and flanks these measures with customary insurance cover. Compliance with
laws, internal guidelines and Freudenberg‘s own code of
values (Guiding Principles and Business Principles) has
high priority and is the subject of regular training. Furthermore, the Business Groups take the initiative in sensitizing
their employees‘ perception of the relevant legal risks.
In addition, the Corporate Functions and the Freudenberg
Regional Corporate Centers ensure that laws and regulations as well as internal rules are observed and complied
with. To that end, training events are held at regular intervals. Modern communication tools such as web-based
training and e-learning tools are used to reach as many
employees as possible.
In order to ensure even more effective compliance with
legal requirements, an improved framework for a compliance management system was drawn up in 2014,
marking a further step in efforts to create an even more
efficient compliance management system tailored to
the structures and needs of the Freudenberg Group.
As a result of expansion and growth within the Group
– particularly in China – the significance of legal risks for
Freudenberg rose compared with the previous year.
Information security risks
The Freudenberg Group relies extensively on information
that is chiefly stored electronically and communicated
by electronic means. In some cases, this information is
crucial, both with reference to internal business processes and with regard to communication with customers
and suppliers. Failure to access such information could,
for example, lead to the interruption of operations at
Freudenberg or at a third party. As a provider of IT services, Freudenberg offers its customers the usual guarantees
regarding availability and performance. Freudenberg
uses a wide range of measures to deal with the associated information security risks, for example by operating
information security management systems oriented to the
ISO/IEC 27001:2005(E) international standard. In addition, various measures such as redundant data centers in
different geographical locations are implemented to deal
with technical risks.
The aim of the guideline on information security issued
by the Board of Management is to preserve the confidentiality, availability and integrity of information;
the guideline sets out procedures to achieve this. The
Business Groups, Corporate Functions and Freudenberg
Regional Corporate Centers conduct comprehensive
risk monitoring and implement the appropriate measures.
An assessment of information security in the Group
is conducted on a regular basis. Numerous internal
communication measures encourage heightened awareness on the part of employees with regard to the correct
handling of information and information processing
systems.
In spite of the measures already implemented, information security risks could have a strongly negative impact
on the Freudenberg Group. Both on balance and in a
year-on-year comparison, there were no major changes
in these risks.
Contractual risks
Freudenberg enters into contracts with third parties on a
daily basis and makes continuous adjustments to its portfolio, latterly through a pronounced focus on the acquisition
of companies and business units. During the course of
these activities, commitments are undertaken or obligations assumed that cannot always be accurately quantified
in advance, must be complied with over a longer period
of time, may change as time goes by or may with hindsight turn out to be disadvantageous. All of these cases
could above all negatively impact the earnings situation of
the Group. Freudenberg has several measures in place to
deal with these risks including comprehensive checks prior
to entering any such contractual arrangements, dedicated
project management or contractual solutions. Freudenberg
also implements systematic contract management and
contract monitoring in selected areas.
There were no major changes to these risks compared
with the previous year. They could nevertheless and in
85
extreme cases - particularly in connection with takeovers have a significant negative impact on Freudenberg.
Freudenberg Group as a whole and controlled by a
central unit.
Financial risks
Interest rate risks arise from possible changes in the
market rate and can lead to changes in the market value
of fixed interest investments. To reduce interest rate risks,
Freudenberg makes funds available to subsidiaries in the
form of loans or cash pools. Vice versa, Freudenberg
companies channel surplus liquidity to the central finance
department.
As an internationally active company with major shareholdings in other countries Freudenberg is exposed to
financial risks which may negatively impact the net assets,
financial position or results of operations of the Group.
Freudenberg employs various measures to manage these
risks. For example, the Group has several specialist functions and expert groups specifically tasked with the identification, analysis and control of Freudenberg‘s financial
risk profile. In addition, selected corporate bodies discuss
and define existing and future processes concerning the
methodology and control of financial risk management.
Various measures to safeguard liquidity are in place
which allow Freudenberg to react swiftly to unexpected liquidity-related risks. Such risks are hedged, for
example, by solid banking and Partners‘ financing and
high liquid reserves. Freudenberg has an above-average
equity ratio, a stable level of Partners‘ reserves through
the Partners of Freudenberg & Co. KG, and comprehensive credit lines.
In addition, Freudenberg is exposed to currency and
interest rate risks which are always meaningfully hedged.
Monitoring of these risks is implemented by internal
guidelines and processes. Because the currency risks of
the various companies have a partially offsetting effect,
the effective foreign exchange risk is determined for the
86
Binding internal guidelines for companies in the
Freudenberg Group clearly specify that derivative financial instruments may not be used for speculative purposes,
but only for hedging risks in connection with underlying
transactions and associated financing operations.
In its rating published in May 2014, the rating agency
Moody’s rated the creditworthiness of Freudenberg SE
as Baa1 and confirmed the outlook as “stable“. This gives
the Freudenberg Group very good creditworthiness at
investment grade level.
Despite all measures, financial risks could still have a
negative impact on the Group. In certain circumstances
their effect on Freudenberg could be significant. Overall,
there were no changes in financial risks compared with
the previous year, primarily as a result of the good earnings position of the Group.
Risks from technological progress and innovation
As a highly diversified technology company, Freudenberg
is active in numerous product and market segments, some
of which vary considerably. Moreover, Freudenberg conducts its entrepreneurial activities on the basis of different
business models. Consequently, Freudenberg operates
in a constantly changing environment and is exposed to
technological progress and a wide range of innovations.
In specific terms, this means that Freudenberg comes up
against new products, technologies or organizational
structures.
Freudenberg uses various measures, such as in-house
research and development and innovation, to manage the
consequences of these risks. The most important pillar and
key driver of innovation at Freudenberg is to be found in
the Business Groups, whose research and development
activities are closely geared to their customers. In addition,
the Freudenberg Group acquires external companies or
business units to add to the Group‘s technology and product portfolio and to enhance innovation capabilities.
With the new Corporate Innovation function, Freudenberg
has created an organizational unit that bundles the
Group‘s technical knowledge - in particular through crosssectional technologies, through Corporate Research &
Development which investigates and develops new areas
of business, and through Corporate New Business and
Venture Capital. In total, Freudenberg invests a notable
share of sales in research and development. Risks from
technological progress and innovation could in theory
have a significant impact on Freudenberg in spite of the
measures implemented. There were, however, no major
changes to these risks compared with the previous year.
HSE risks (health, safety, environment)
Various raw materials and processes used by
Freudenberg in production have differing effects on the
environment and workplace safety. These effects could,
for example, lead to personal injury or have a negative
environmental impact at a site. Freudenberg manages
these risks in many ways with the aim of continually reducing their impact. With regard to hazardous substances or
substances which have become the subject of debate as
a result of legislative initiatives such as REACh (European
Regulation on Registration, Evaluation, Authorization and
Restriction of Chemicals), Freudenberg proactively engages in searching for alternatives or substitute substances
before a statutory provision comes into effect while at the
same time forestalling the effects on production of a possible ban on a given substance. In addition, many product
developments are subject to a stage gate process which
among other things ensures that new products have a
better environmental performance than their predecessors.
Freudenberg‘s worldwide “We all take care“ initiative calls
on every employee to engage personally in improving
environmental protection and occupational health and
safety. The initiative is constantly evolving and is supported
by the Group‘s top management and senior executives in
the Business Groups. The Freudenberg Group is developing a growing number of occupational health measures
87
for its older employees; these measures cater for national
and regional factors.
Internal and external audit processes monitor the implementation of HSE or fire protection programs by the Business
Groups. One objective of these programs is to raise awareness for fire protection and to prevent personal injury, operational interruptions and the associated potential delivery
disruptions. The findings of the audits are systematically evaluated and measures implemented throughout the relevant
Business Groups. In spite of all the preventive measures, HSE
risks can nevertheless have a significant impact, particularly
at the larger locations such as Weinheim.
The most significant potential threat comes from incidents
involving a fire and the associated operational interruptions.
There were no major changes in HSE risks compared with
the previous year.
campaigns at leading Chinese universities and personnel
retention and development programs designed specifically
for the Chinese labor market.
Personnel risks in China are classified as significant. These
risks are less significant for Freudenberg in other regions.
Compared with the previous year, personnel risks rose as
a result of the Group‘s expansion in China. There were no
major changes in the other regions.
Overall picture of the risk situation
The analysis of present risks concludes there are no risks
which pose a threat to the continued existence of the
Freudenberg Group. There were no major changes in the
overall risk situation of the Group compared with the previous year.
Opportunities
Personnel risks
Administrative excellence
A further risk for Freudenberg is growing competition for
talent, particularly in China, where the labor market is
highly competitive. This risk can lead, for example, to a rise
in personnel expenses or recruitment costs. Freudenberg
responds to this risk with global and local measures such
as the Group-wide talent management process which
ensures that Freudenberg employees throughout the Group
receive further expert training and acquire the skills needed by the company on the basis of unified programs and
standards. Furthermore, several additional measures are in
place in China; these include in particular regular recruiting
88
In 2013, Freudenberg launched an initiative to increase
administrative excellence which comprised several projects
to raise efficiency in the field of administration. The first potential savings and efficiency enhancements under this initiative
were achieved in 2014, with some of them exceeding
expectations. The initiative will be continued in the coming
years and it is possible that the cost savings and efficiency
improvements realized under the projects will be higher than
anticipated. Freudenberg would then be in a position to
become even more competitive than in previous years.
Freudenberg global brand
In 2014, the groundwork was laid for presenting the
redesigned Freudenberg global brand in 2015. One
of the key elements will be the clear positioning of the
Freudenberg brand. The entire Freudenberg Group, and
the smaller units in particular, stand to benefit significantly, for example with regard to recruiting employees
and winning customers.
Talent management
Freudenberg rolled out a new talent management
process in 2013. The process establishes a uniform
procedure for talent management throughout the entire
Freudenberg Group. The process includes standardized assessment systems based on standardized skills
profiles and definitions of potential. This enhances the
comparability of assessments and facilitates personnel
development. The process improves the basis on which
Freudenberg can take personnel decisions in the future,
and therefore brings the prospect of long-term cost
savings in many areas, particularly with regard to recruitment and personnel development, on a notably larger
scale than present expectations.
Economic globalization
customers, for example in production or research and
development. In the past, Freudenberg has almost exclusively leveraged this expertise for customers from Europe
or North America as they gain a foothold in emerging
markets, most notably in Brazil, Russia, India or China.
Recently, however, Freudenberg encountered the reverse
situation and successfully supported a customer from an
emerging economy enter the market in western Europe.
If this trend were to intensify in the future, Freudenberg
could benefit from globalization to a significantly larger
extent than anticipated.
Investment in strategic growth areas and regions
Freudenberg offers solutions for thousands of customers
in over 30 sectors of industry and is active in some 60
countries. The Group will invest in four strategic growth
areas – chemical surface treatment, medical technology,
oil & gas, and industrial filtration – wherever attractive
opportunities arise and in line with the megatrends
relevant to Freudenberg. Investment will take the form of
acquisitions and additional research and development
tasks. Furthermore, Freudenberg intends to step up its
activities in individual regions in line with market opportunities. The Group therefore has the chance for stronger
than anticipated growth as the pace of growth accelerates and the scale of diversification widens, and to trigger
greater innovation in established areas.
Due to its global presence, Freudenberg has for many
years been able to offer products and services worldwide at uniform standards. As a result, Freudenberg
can keep pace with the international strategies of its
89
Internal control and risk management system
(referred to the financial reporting process)
The internal control and risk management system for the
financial reporting process at Freudenberg is tasked with
ensuring the functionality, compliance and effectiveness of
financial reporting in the Group. The internal control system
includes measures intended to ensure the complete, accurate and timely transmission and presentation of information
of relevance to the preparation of the consolidated financial
statements and the consolidated management report of the
Freudenberg Group.
The Board of Management of the Freudenberg Group
bears overall responsibility for the internal control system.
To this end, Freudenberg has initiated the following main
measures: the Corporate Controlling & Accounting function
is responsible for drawing up the consolidated financial
statements and the consolidated management report of
the Freudenberg Group. It defines minimum requirements
regarding reporting content submitted by the companies
and controls and monitors the time frame and process
requirements. Corporate Controlling & Accounting is also
responsible for the central administration of the shareholding structures and updates the list of companies included
in the Freudenberg Group consolidation as appropriate.
The standards for IFRS reporting as regularly updated form
the basis for compiling the IFRS reporting packages of the
parent company and of all domestic and foreign subsidiaries included in the consolidation. The necessary information concerning the coordinated and punctual compilation
of the consolidated financial statements in compliance with
90
the relevant accounting laws and standards is available
to all Freudenberg employees involved in this process via
the Freudenberg intranet. There are binding instructions
for internal coordination and the preparation of financial
statements.
Freudenberg uses a standard software tool for the Group
financial reporting process. This tool is used throughout the
company worldwide and clearly defines user rights observing the principle of the separation of functions. The system
covers both reporting by Freudenberg companies and the
consolidated financial statements. Additional controls are
implemented in the consolidation process.
This process is also supported by a software tool for the
automatic reconciling of balances throughout the Group.
The individual companies have a local internal control
system which is the responsibility of the respective Business
Group and which must comply with uniform minimum requirements applicable throughout the Group. If Shared Service
Centers are responsible for the financial processes, then the
internal control system of the Shared Service Centers also
applies.
Corporate Controlling & Accounting provides support
for local contact partners throughout the entire reporting
process. The corporate function organizes seminars for
employees involved in this process in the event of important
changes in financial reporting procedures and IT applications, thereby guaranteeing a consistently high standard of
reporting. Some sections of the HSE reporting process are
integrated in the central reporting system.
There is a clear demarcation of tasks between Corporate
Controlling & Accounting and the companies. The separation of functions and the dual control principle are systematically applied. Actuarial reports and evaluations are
compiled by specialist service providers or appropriately
qualified employees. It is standard procedure for the Group
auditor and the auditors of the consolidated companies
to review the functionality and compliance of the Group‘s
reporting processes. The minimum controls defined by
Freudenberg are also reviewed as part of the audit process.
The Audit Committee monitors the effectiveness of the internal control and risk management system. In addition, the
functionality and compliance of processes of relevance to
financial reporting are reviewed regularly under an internal
auditing process. The complete package of processes,
systems and controls adequately ensures that the Group‘s
reporting process is in accordance with IFRS and other
regulations and laws of relevance to financial reporting and
is reliable.
91
Overall, our assessment of the prospects for economic
conditions* in the 2015 financial year is cautiously
optimistic. Global economic growth in 2015 should
benefit from the present decline in oil prices. Growth in
eurozone countries is expected to be slightly stronger on
the back of the depreciation of the euro. All in all, however, these effects are not likely to have a major impact
on the moderate development of the global economy.
These forecast economic conditions could change very
swiftly. According to our current assessment, the economic
situation in South America, Russia and southern Europe is
unlikely to change significantly in the coming years – and
could even deteriorate. Furthermore, we expect to see
negative developments in the oil and gas industry as a
result of the lower oil price and we anticipate the neutral
effect of exchange rates on the Group to continue.
More specifically, we expect economic development in
Germany to remain robust in 2015. The German economy will again produce an above-average performance
compared with other EU countries, with gross domestic
product (GDP) increasing by 1.5 percent. With reference
to the eurozone, Freudenberg‘s largest sales region, we
expect to see a rise in GDP of around 1.2 percent. We
anticipate a strong economic trend in the USA, and
estimate that U.S. economic growth for the full year will
run at 3.0 percent.
The Freudenberg Group plans to outperform the market in
2015 and to draw above-average benefit from economic
developments in the individual regions. To that end, the
individual Business Groups will execute their operational
planning and respond appropriately to new challenges.
In contrast, our forecasts for the emerging economies are
very mixed. We expect China, an important market for
Freudenberg, to continue to drive the global economy.
GDP in China is forecast to grow by 7.0 percent in 2015.
In India, the change of government last year triggered
new momentum. We expect GDP in this region to
increase by 6.3 percent.
Key structural reforms in Brazil are in all probability again
unlikely to materialize in 2015. Consequently, GDP there
is only expected to grow by 0.3 percent. In light of the
conflict with Ukraine, GDP in Russia is anticipated to fall
by 3.5 percent.
Freudenberg Sealing Technologies plans to expand
business further, above all in Asia, focusing on the automotive and industrial sector and on expanding the relevant
product portfolio. Freudenberg Oil & Gas Technologies
expects to see investments by the oil and gas industry decline as a consequence of the drop in the price of oil. The
lower oil price will negatively impact the Business Group‘s
sales. In light of this, Freudenberg Oil & Gas Technologies has already introduced several cost-saving measures
which also include optimizing production and improving
internal processes. EagleBurgmann expects a downturn in
business in Russia and subdued demand for mechanical
seals in Japan. The Business Group will therefore systematically continue with its established cost and liquidity
management. In 2015, the Helix Medical Business Group
will continue to drive forward the integration of the
businesses acquired in recent years. In addition, Helix
Medical will be intensifying investment in proprietary knowhow for various medical applications. The organizational
* Sources: In this chapter, all figures referring to economic developments are based on data from Consensus Economics, the European
Commission, the International Monetary Fund and the market research and consultancy company Schlegel und Partner.
92
realignment of the Freudenberg Nonwovens and
Freudenberg Politex Nonwovens Business Groups and
their merger to form the new Freudenberg Performance
Materials Business Group should enable the new unit
to serve customers more effectively and efficiently.
Freudenberg Performance Materials will invest in new
applications, technologies and IT systems.
The Freudenberg Filtration Technologies Business Group
will continue to focus on automotive filters and industrial filtration. It will also seize attractive openings to
expand its market position in further filtration applications.
Freudenberg Home and Cleaning Solutions is likely to
benefit from the economic growth in the North America,
Asia/Pacific and India regions forecast for 2015. At the
same time, the Business Group will not be immune to
negative developments in Russia and some parts of the
Middle East. Freudenberg Chemical Specialities expects
positive overall business development in 2015. In line
with economic conditions, developments in the individual
regions will be very mixed.
Across the board, we will be offering our customers
new innovative solutions in 2015. We will drive our key
projects forward and will also launch new initiatives with
regard to sustainability, non-financial key performance
indicators and social commitment. We will invest in the
four strategic growth areas – chemical surface treatment,
medical technology, the oil and gas industry, and industrial filtration – wherever attractive opportunities arise, and
we will intensify our activities in selected regions in line
with market openings. The Freudenberg Group will again
deliver on its commitment to responsible conduct in 2015
by implementing numerous HSE measures. We expect
to achieve a slight reduction in the number of accidents
at work, measured by the “Lost Day Incident - Frequency
Rate“ (LDI-FR) (accidents resulting in at least one day‘s
absence from work per million working hours) referred to
the full year.
We will continue to act prudently, keep a careful watch
on economic developments, and respond swiftly and systematically to market changes. We will also systematically
pursue our business policy with high operating efficiency
and flexibility, and with solid financial management.
The analysis of present risks concludes there are no risks
which pose a threat to the continued existence of the
Freudenberg Group. There were no major changes in
the overall risk situation of the Group compared with the
previous year.
From today‘s perspective and despite all challenges, we
expect year-on-year sales growth of between 2 and 4
percent for the Freudenberg Group in the 2015 financial
year accompanied by an operating result at the prior-year
level. All Business Groups are likely to contribute to this
performance. On the basis of this forecast, we expect a
slight decline in the return on sales.
Overall, we are confident we will be able to improve the
excellence of our Group still further in the current financial
year.
The Board of Management
93
94
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS
Freudenberg SE
96
97
98
99
100
101
Consolidated Statement of Profit or Loss and Other Comprehensive Income
95
[€ million]
ASSETS
Intangible assets
Tangible assets
Investment properties
Investments in joint ventures
Investments in associated companies
Other financial assets
Financial assets
Other non-current assets
Deferred taxes
Non-current assets
Inventories
Trade receivables
Other current assets
Current receivables
Current tax assets
Current assets
Non-current assets held for sale and disposal groups
EQUITY AND LIABILITIES
Subscribed capital
Capital reserves
Retained earnings
Equity without non-controlling interests
Non-controlling interests
Equity
Provisions for pensions and similar obligations
Other long-term provisions
Long-term provisions
Financial debt
Other non-current liabilities
Liabilities
Deferred taxes
Other current provisions
Current tax liabilities
Financial debt
Trade payables
Other current liabilities
Liabilities
Current liabilities
Liabilities in connection with non-current assets
held for sale and disposal groups
96
Note Dec. 31, 2013
(1)
(2)
(3)
(4)
(5)
(7)
(20)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(20)
(12)
(13)
(9)
Dec. 31, 2014
786.7
1,387.8
19.3
348.3
691.6
106.2
1,146.1
53.0
82.9
3,475.8
697.7
846.3
134.2
980.5
38.2
672.9
2,389.3
7.5
5,872.6
860.6
1,466.5
20.6
413.1
820.0
118.1
1,351.2
28.6
120.4
3,847.9
798.5
929.5
142.4
1,071.9
30.5
917.7
2,818.6
0.0
6,666.5
450.0
50.2
1,951.8
2,452.0
322.9
2,774.9
465.9
89.1
555.0
672.9
63.4
736.3
121.0
1,412.3
355.7
42.8
519.1
468.8
299.0
1,286.9
1,685.4
450.0
50.2
2,344.4
2,844.6
366.4
3,211.0
620.0
69.7
689.7
677.5
78.3
755.8
113.8
1,559.3
437.0
64.4
558.9
524.1
311.8
1,394.8
1,896.2
0.0
5,872.6
0.0
6,666.5
Financial Report – Consolidated Statement of Financial Position
[€ million]
Note
2013
2014
Sales
Cost of sales
Gross profit
Selling expenses
Administrative expenses
Research and development expenses
Other income
Other expenses
Income from investments in joint ventures
Profit from operations
Income from investments in associated companies
Other investment result
Other interest and similar income
Interest and similar expenses
Financial result
Income taxes
Consolidated profit
(14)
(15)
5,646.1
-3,512.0
2,134.1
-996.0
-530.5
-191.5
64.3
-58.2
35.1
457.3
66.1
5.8
10.5
-46.4
36.0
493.3
-94.5
398.8
5,982.3
-3,672.1
2,310.2
-1,068.7
-511.4
-211.6
85.1
-95.3
55.1
563.4
92.8
-3.1
12.3
-40.3
61.7
625.1
-147.3
477.8
352.4
46.4
427.4
50.4
Profit attributable to Freudenberg
Profit attributable to non-controlling interests
(16)
(17)
(18)
(4)
(5)
(19)
(20)
(21)
97
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
2013
2014
398.8
477.8
(11)
12.7
-150.5
(10)
-4.2
8.5
40.0
-110.5
(10)
(10)
(10)
(4)
(5)
-291.2
23.0
6.2
-0.9
81.3
-21.7
136.4
12.5
0.1
-0.1
50.3
-2.9
(10)
-1.0
-7.6
-204.3
188.7
Other comprehensive income for the year
-195.8
78.2
Total comprehensive income for the year
Of which attributable to Freudenberg
Of which attributable to non-controlling interests
203.0
151.3
51.7
556.0
483.1
72.9
[€ million]
Note
Consolidated profit
Other comprehensive income:
Remeasurement of defined benefit plans
Income tax relating to items that
will not be reclassified to profit or loss
Items that will not be reclassified to profit or loss
Exchange rate differences
Changes in value of securities
Changes in value of derivative financial instruments
Share in other comprehensive income of joint ventures
Share in other comprehensive income of associated companies
Miscellaneous comprehensive income
Income tax relating to items that will be reclassified
subsequently to profit or loss when specific conditions are met
Items that will be reclassified subsequently to profit or loss
when specific conditions are met
98
Financial Report – Consolidated Statement of Profit or Loss
and Other Comprehensive Income
2013
2014
493.3
-112.4
625.1
-173.4
237.6
256.2
-6.9
-82.1
-100.8
29.4
57.8
515.9
-6.7
-111.7
-72.8
53.6
47.5
617.8
23.1
34.8
-229.3
21.5
-9.6
-271.6
1.2
-4.9
-325.4
-519.7
-98.2
- 338.7
-95.9
-119.9
147.1
69.2
4.8
-1.5
4.2
-0.8
54.5
- 47.3
Changes in cash and cash equivalents with effect on payments
Changes in cash and cash equivalents from changes in consolidated group
Changes in cash and cash equivalent from exchange rate differences
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
50.7
-8.1
-21.9
652.2
672.9
231.8
0.0
13.0
672.9
917.7
672.9
917.7
[€ million]
Current income taxes
Depreciation, amortization and impairment losses on intangible assets,
tangible assets, investment properties and financial assets less write-ups
Profit or loss on disposal of intangible assets, tangible assets,
investment properties and financial assets
Other expenditure and income not affecting payments
Changes in inventories, trade receivables and other assets
Changes in trade payables and other liabilities
Changes in provisions
Cash flow from operating activities
Cash inflow from disposals of intangible assets, tangible assets
and investment properties
Cash outflow from acquisitions of intangible assets, tangible assets and
investment properties
Cash inflow from disposals in financial assets
Cash outflow from acquisitions in financial assets
Payments in connection with the disinvestment/investment of consolidated
companies less cash acquired or disposed of
Payments to shareholders/non-controlling interests
Cash inflow from the take-up/cash outflow from the
repayment of financial debts
Cash inflow from disposals of loans and securities held as
non-current assets
Cash outflow from acquisitions of loans and securities held as
non-current assets
Cash flow from financing activities
Note
(22)
99
450.0
Equity
450.0
Non-controlling
interests
50.2
Equity without
non-controlling
interests
Consolidated profit
Appropriation of profit
Other comprehensive income
Status Dec. 31, 2014
450.0
Retained earnings
Status Jan. 1, 2013
Consolidated profit
Appropriation of profit
Capital reserves
[€ million]
Subscribed capital
50.2
1,873.8
352.4
-73.3
-201.1
1,951.8
2,374.0
352.4
-73.3
-201.1
2,452.0
294.0
46.4
-22.8
5.3
322.9
2,668.0
398.8
-96.1
-195.8
2,774.9
50.2
427.4
-90.5
55.7
2,344.4
427.4
-90.5
55.7
2,844.6
50.4
-29.4
22.5
366.4
477.8
-119.9
78.2
3,211.0
See also the explanatory remarks on equity in note (10) to the Consolidated Financial Statements.
100
Financial Report – Consolidated Statement of Changes in Equity
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
General
The Freudenberg Group is an international industrial group mainly active as a supplier to the automotive, mechanical
engineering, oil and gas, textile and apparel industries throughout the world. The Group’s portfolio also includes medical
technology and consumer goods.
The consolidated financial statements of Freudenberg Societas Europaea (hereafter Freudenberg SE), Weinheim,
Germany, for 2014 have been drawn up in accordance with the International Financial Reporting Standards (IFRS) as
they are to be applied in the European Union (EU) as of the date of the statement of financial position (December 31,
2014). Comparative figures for the previous financial year were based on the same principles.
Freudenberg SE has availed itself of the right as laid down in Sec. 315a (3) HGB (Handelsgesetzbuch, “German
Commercial Code”) to set up its consolidated financial statements in accordance with IFRS.
The Group currency is the euro. All amounts are indicated in million euros unless otherwise stated.
In the 2014 financial year, the application of the following amended standards was binding for the first time:
– IAS 32:
Amendment to IAS 32 – Financial Instruments: Presentation – Offsetting Financial Assets
and Financial Liabilities
– IAS 36:
Amendment to IAS 36 – Recoverable Amount Disclosures for Non-Financial Assets
– IAS 39:
Amendment to IAS 39 – Novation of Derivatives and Continuation of Hedge Accounting
The first-time application of these amended standards had no effect or no material effect on the consolidated financial
statements.
101
Freudenberg applied the following new standards and amendments to existing standards, the application of which was
mandatory for the first time as at December 31, 2014, on a voluntary basis for the consolidated financial statements as at
December 31, 2013:
– IFRS 10:
Consolidated Financial Statements
– IFRS 11:
Joint Arrangements
– IFRS 12:
Disclosure of Interests in Other Entities
– Amendment to IFRS 10, IFRS 11, IFRS 12:Consolidated Financial Statements, Joint Arrangements and Disclosure
of Interests in Other Entities: Transition Guidance
– Amendment to IFRS 10, IFRS 12, IAS 27: Investment Entities
102
– IAS 27:
Separate Financial Statements
– IAS 28:
Investments in Associates and Joint Ventures
Financial Report – Notes to the Consolidated Financial Statements
The IASB and the IFRS Interpretations Committee have published additional standards, interpretations and amendments
the application of which was not yet binding for the 2014 financial year. The application of these standards, interpretations and amendments is subject to endorsement by the EU which, in some cases, is still pending.
Standard/
Interpretations
Application
binding from*
Endorsed
by EU
Probable
impact
IFRS 9
Financial Instruments
January 1, 2018
No
IFRS 10,
IFRS 12 and
IAS 28
IFRS 11
Amendment to IFRS 10, IFRS 12
and IAS 28 – Investment Entities: Applying
the Consolidation Exception
Amendment to IFRS 11 – Accounting for
Acquisitions of Interests in Joint Operations
Regulatory Deferral Accounts
Revenue from Contracts with Customers
January 1, 2016
No
Changes in the classification and
measurement of financial assets and
liabilities, impairments, hedge
accounting and extended disclosures
in notes; it is expected that the impact
of the changes will be slight
None
January 1, 2016
No
None
January 1, 2016
January 1, 2017
No
No
Amendment to IAS 1 – Disclosure Initiative
Amendment to IAS 16 and IAS 38 –
Clarification of Acceptable Methods of
Depreciation and Amortisation
Amendment to IAS 16 and IAS 41 – Bearer
Plants
Amendment to IAS 19 – Defined Benefit
Plans: Employee Contributions
Amendment to IAS 27 – Equity Method in
Separate Financial Statements
Amendment to IAS 28 and IFRS 10 –
Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture
Levies
Annual Improvements to IFRSs
2010 – 2012 Cycle
2011 – 2013 Cycle
2012 – 2014 Cycle
January 1, 2016
January 1, 2016
No
No
None
Effects on sales, mainly as a result of
customer-specific project orders and
extended disclosures in notes
No significant impact
None
January 1, 2016
No
None
July 1, 2014
No
January 1, 2016
No
None
January 1, 2016
No
None
January 1, 2014
July 1, 2014
Yes**
No
None
None
July 1, 2014
Yes
None
January 1, 2016
No
IFRS 14
IFRS 15
IAS 1
IAS 16 and
IAS 38
IAS 16 and
IAS 41
IAS 19
IAS 27
IAS 28 and
IFRS 10
IFRIC 21
Various
standards
Various
standards
Various
standards
* From this date or for reporting periods beginning after this date.
** The first date of binding application defined by the EU endorsement is different from the first date of application stated in the standard.
103
Consolidated group
Apart from Freudenberg SE, 67 (previous year: 68) German and 324 (previous year: 323) foreign affiliated companies,
with respect to which Freudenberg SE has the power to direct the relevant activities of the company, the right to variable
returns from the company and the ability to affect such variable returns, are fully consolidated.
Freudenberg holds a 25-percent stake in EagleBurgmann Japan Co., Ltd., Tokyo, Japan, the partner in the joint venture in
the field of mechanical seals operated within the EagleBurgmann Business Group. Eagle Industry Co., Ltd., Tokyo, Japan,
also holds a 25-percent stake in EagleBurgmann Germany GmbH & Co. KG, Wolfratshausen, Germany. According to the
Joint Venture Agreement, Freudenberg exercises control over affiliated companies of the EagleBurgmann Group in which
Freudenberg holds less than half of the voting rights of the other company; such affiliated companies are therefore fully
consolidated.
Ten (previous year: nine) German and 57 (previous year: 53) foreign joint ventures are included in the consolidated
financial statements. These legally independent companies are managed jointly with the partner company in each case.
Both parties hold rights to the net assets of the companies. The joint ventures are consolidated by the equity method.
In addition, 12 (previous year: 14) foreign associated companies are included in the consolidated financial statements.
Freudenberg does not control these companies but only exercises a significant influence. These companies are consolidated
by the equity method.
All affiliated companies, joint ventures and associated companies are listed under “Shareholdings of the Freudenberg
Group“.
In the year under review, 15 companies were included in the consolidated financial statements as fully consolidated
affiliated companies for the first time. 15 companies which had previously been fully consolidated were no longer included
as fully consolidated affiliated companies due to sale, liquidation or merger. The timing of the initial consolidation was
determined on the basis of the date when Freudenberg SE started to exercise financial control.
Tobul Accumulator Incorporated with headquarters in Bamberg, USA, was acquired with effect from July 31, 2014. The
objective of this acquisition was to strengthen the seals and vibration control strategic business area in the field of the
development and production of hydraulic accumulators.
In addition, various companies of the Hänsel Group which operate the interlinings business of the Hänsel brand were
acquired from Hänsel Textil GmbH, Iserlohn, Germany, with effect from August 1, 2014. This acquisition further expanded
interlinings business.
Apart from the participations mentioned above, the following operations were acquired on the basis of asset deals:
104
Effective January 15, 2014, the Marigold household gloves business was acquired from Comasec SAS, Gennevilliers,
France, a company of the Dutch Ansell Group. The acquisition included the global trademark rights for the Marigold brand
as well as consumer business in the UK, Ireland, Italy, the Netherlands, Hong Kong and Japan.
Effective November 1, 2014, Freudenberg acquired the industrial activated carbon corrosion protection business of North
American company MeadWestvaco Corporation, headquartered in Richmond, Virginia, USA. This means that Freudenberg
can offer global customers an even broader portfolio of future-oriented filtration solutions for pollution-free air.
In 2014, the balance of the amount expended on acquisition activities and the amount received as a result of disinvestment
activities was €-98.2 million (previous year: €-325.4 million).
The changes in the consolidated group had the following effects on the net assets, financial position and results of
operations:
[€ million ]
Non-current assets
Current assets
Current liabilities
Sales
Dec. 31, 2013
307.3
97.7
54.7
327.4
106.8
Dec. 31, 2014
93.9
31.3
18.9
106.7
66.1
Consolidation methods
The acquisition costs of the shareholdings concerned are set off against the pro-rata share in the fair value of the equity of
the companies concerned as of the date of acquisition according to the purchase method. Assets and liabilities are also
included in the consolidated statement of financial position at their fair values as of the acquisition date. Any remaining
differences are shown as goodwill.
Inter-company profits and losses, sales, expenses and income and all receivables and payables between consolidated
companies are eliminated. Deferred taxes are set up on consolidation transactions affecting net income.
Joint ventures and associated companies are consolidated by the equity method on the basis of financial statements
drawn up in accordance with IFRS.
The differences arising from the acquisition of shareholdings in joint ventures and associated companies form part of the
book value of the shareholding in the company concerned. Amortization is not recognized on goodwill in subsequent
periods. An impairment test is carried out on the book value of the shareholding in the joint venture or associated company as a whole.
105
Accounting and measurement principles
The consolidated financial statements are based on the annual accounts of Freudenberg SE and the consolidated
companies. All the annual accounts concerned were drawn up as at December 31, 2014.
In accordance with IFRS 10, the accounts of the individual companies to be included in the consolidated financial statements have been drawn up applying uniform accounting and measurement methods.
Acquired intangible assets are capitalized at acquisition cost and amortized on a systematic basis.
Amortization is based on the following useful lives:
Software
Patents and licenses
3 to 8 years
depending on contract term
An impairment test is carried out on goodwill at least once per year and an impairment loss is shown if the value of such
assets is found to have been impaired.
For the impairment test, the value in use of the cash-generating unit to which the goodwill is allocated is determined in
accordance with IAS 36 on the basis of a five-year plan, applying the discounted cash flow method. In line with internal
management reporting, the cash-generating units are determined on the basis of the Business Groups. The discount rates
used are based on the WACC (”weighted average cost of capital“) determined separately for each cash-generating unit.
An impairment loss is recognized if the carrying amount of the cash-generating unit is in excess of discounted future cash
flows.
Impairments of capitalized goodwill are shown under other expenses in the consolidated statement of profit or loss.
Provided that such assets meet the requirements of IAS 38, internally generated intangible assets are carried as assets at
production cost and are amortized on a systematic basis over their useful lives, if their useful lives are finite.
If the useful life of intangible assets is not considered to be finite, no amortization is effected. An impairment test is carried
out on such assets annually. An intangible asset may be regarded as having an indefinite useful life when, based on an
analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash flows for the Group.
Tangible assets are capitalized at acquisition or production cost. In the case of assets produced by Group companies,
production cost also includes directly attributable cost as well as pro-rata overheads and depreciation.
106
Borrowing costs are capitalized as part of acquisition or production cost in the case of qualifying assets.
Expenditure for repairs and maintenance is generally shown as expenses. Such expenditure is only capitalized if future
economic benefits in connection with such expenditure are probable and the acquisition or production cost can be
reliably measured.
Movable non-current assets and industrial buildings are depreciated over their useful lives. This approach normally
corresponds to straight-line depreciation.
Systematic depreciation is determined on the basis of the following useful lives:
Buildings
Machinery and equipment
Other fixtures, fittings and office equipment
max. 50 years
5 to 20 years
3 to 20 years
In addition, an impairment loss is recognized if the fair value less costs to sell or value in use of an asset falls below the
book value. If the impairment of an asset reflected by a write-down in the past is reduced or eliminated, the impairment
loss is reversed. The updated acquisition or production cost represents the upper limit of measurement in such cases.
Taxable grants and tax-free investment subsidies, normally paid by public bodies, are set off against acquisition or production cost.
In accordance with IAS 17, tangible assets leased under finance leases are recognized as assets and written off over
their economic useful life if substantially all the risks and rewards associated with the ownership of the leased asset lie
with the lessee. Such assets are carried at the fair value of the leased asset at the inception of the lease or, if lower, at the
present value of the minimum lease payments. A liability of the same amount is also shown on the statement of financial
position.
In the case of operating leases, lease payments are recognized as expenses.
Land and buildings held to earn rentals from third parties are dealt with as investment properties. Such properties are
measured at acquisition cost. Investment properties are depreciated over their useful lives. This approach normally
corresponds to straight-line depreciation. As a general principle, systematic depreciation is calculated on the basis of a
maximum useful life of 50 years and effected on a straight-line basis. The fair value is determined by the discounted cash
flow method.
107
Participations are shown at acquisition cost or, if lower, at fair value.
Investments in joint ventures and associated companies are shown at acquisition cost on first-time consolidation and subsequently adjusted for changes in the share of the shareholder in the net assets of the company concerned.
Long-term loans are discounted if the amount of such discount is significant.
Inventories are shown at acquisition or production cost or at net realizable value, where this is lower. Inventories of raw
materials and consumables and merchandise are measured by the weighted average cost method. Production cost
includes directly attributable costs as well as production and material overheads and depreciation.
Receivables and other assets are recognized at amortized cost. Impairments are recognized for individual risks identified
which are not covered by credit insurance. Impairments are effected using a separate account if circumstances become
apparent as a result of which the conclusion can be drawn that certain receivables are subject to risks in excess of the
general credit risk. The amortized cost is approximately equivalent to the fair value of the assets concerned. Long-term
receivables are discounted if the amount of such discount is significant.
Securities carried as non-current or current assets that are available for sale are recorded at fair value as of the statement
of financial position date. Value changes are shown under equity without an effect on net income.
Cash at bank or in hand is shown at its nominal value. Cash held in foreign currencies is converted using the exchange
rate as of the statement of financial position date.
Non-current assets and groups of assets held for sale are shown separately in the statement of financial position if they
are available for immediate sale in their present condition and the sale of such assets is highly probable within the next
12 months. Such assets are shown at the lower of fair value less costs to sell and book value. Systematic depreciation is
not recognized on such assets from the date of reclassification. Liabilities included in a disposal group are shown
separately under liabilities.
The requirement for the reversal of the impairment of assets has been complied with both for non-current and for current
assets. Unless individual standards call for a different measurement, the updated acquisition or production cost represents
the upper limit of measurement in such cases.
108
Provisions for pensions and similar obligations are determined by the projected unit credit method using actuarial principles, taking into account future income and pension trends. Service cost and the net interest on the net defined benefit
liability are recognized with an impact on profit or loss. Remeasurements of the net defined benefit liability are disclosed
under other comprehensive income. Plan assets are measured at fair value.
Deferred taxes are calculated on temporary differences between the book values of assets and liabilities in the
consolidated statement of financial position and their tax bases, taking into account the applicable national income tax
rates valid on the date of realization and already in force on the statement of financial position date. In addition, deferred
tax assets are recognized for tax losses carried forward if it is likely that such losses will be usable by the company.
Deferred tax assets and liabilities are only set off against each other in cases where the income taxes concerned are
levied by the same tax authority and concern the same period.
Other provisions allow for all recognizable risks and uncertain obligations towards third parties which will probably result
in an outflow of resources which can be reliably estimated. Such provisions are recognized at their most probable settlement value and discounted if the amount of such discount is significant. Reimbursement rights in this connection are shown
separately under other assets.
Liabilities are shown at their face value or at the repayment or settlement value, where this is higher. Non-current liabilities
are discounted if the amount of such discount is significant.
Sales and other income are recognized at the fair value of the consideration received or receivable when the services
are performed or the goods or products concerned are delivered.
The consolidated statement of cash flows is broken down into cash flows from operating, investing and financing activities.
Effects arising from changes in the consolidated group and the effects of exchange rate differences have been eliminated
from the consolidated statement of cash flows. The influence of these effects on cash and cash equivalents is indicated
separately.
In connection with the drawing-up of the consolidated financial statements, it has been necessary to make assumptions
and estimates concerning certain assets and liabilities (for example, as regards the useful life of assets with a finite useful
life or the parameters for determining pension liabilities). Actual future figures may deviate from these estimates.
109
Fair value is determined on the basis of input factors in three defined categories. The following fair value measurement
hierarchy is applied:
Level 1: Use of quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date.
Level 2: Determination of fair value using measurement procedures based on observed input factors for similar assets or
liabilities in active markets or for identical assets or liabilities in markets that are not active.
Level 3: Measurement of assets and liabilities using measurement methods based on unobservable inputs as adequate
observable market data are not available for the measurement of fair value.
110
Currency translations
The financial statements of all companies included in the consolidated financial statements which are not located in the
eurozone are drawn up in the national currencies concerned. This is the currency of the primary economic environment in
which the companies concerned operate (concept of functional currency).
In the accounts of individual companies, foreign-currency receivables and liabilities are translated at the exchange rates
as of the date of the statement of financial position.
Goodwill created as a result of acquisitions on or after March 31, 2004, is carried as an asset of the economically
independent foreign companies concerned in their respective functional currencies.
As a general principle, the annual financial statements of companies located in hyperinflationary economies are
translated in accordance with the requirements of IAS 29.
In the consolidated financial statements, the financial statements of all companies not located in the eurozone are
translated in accordance with the following principles:
Statement of financial position items are translated at the exchange rate as of the date of the statement of
financial position.
Statement of profit or loss items are translated at average annual exchange rates.
Differences arising from the use of different exchange rates are recognized in equity without an effect on net income.
The same principles are used in the case of investments in joint ventures and associated companies consolidated by the
equity method.
The exchange rates of currencies used for currency conversion which are material to the annual financial statements
developed as follows:
Country
Currency
1 Euro =
China
India
Japan
Norway
Russia
United Kingdom
USA
CNY
INR
JPY
NOK
RUB
GBP
USD
Closing rate
Dec. 31, 2013
Dec. 31, 2014
8.3314
85.2246
144.5122
8.3614
45.2582
0.8331
1.3767
7.5550
77.4729
145.2439
9.0144
67.5895
0.7818
1.2166
Average rate
2013
2014
8.1686
78.5205
130.3060
7.8681
42.5912
0.8497
1.3301
8.1575
80.7777
140.5060
8.3928
51.5000
0.8028
1.3219
Differences arising from the use of different exchange rates compared with the previous year are shown in the statement
of changes in intangible and tangible assets with respect to non-current assets and in the consolidated statement of profit
or loss and other comprehensive income with respect to equity.
111
(1) Intangible assets
Concessions
and licenses
Goodwill
Payments made
on account
Total
Changes in intangible assets from January 1 to December 31, 2013:
487.9
159.8
-32.9
15.7
0.0
-15.4
1.0
616.1
417.3
111.5
-24.2
1.1
0.0
-0.8
0.0
504.9
0.1
0.0
0.0
0.6
0.0
-0.2
0.3
0.8
905.3
271.3
-57.1
17.4
0.0
-16.4
1.3
1,121.8
Status Jan. 1, 2013
Changes in consolidated group
Additions – systematic
Impairment losses
Write-ups/revaluations
Disposals
Reclassifications
277.9
0.0
-12.1
49.2
0.1
0.0
-6.3
0.2
309.0
26.3
0.0
-0.2
0.0
0.0
0.0
0.0
0.0
26.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
304.2
0.0
-12.3
49.2
0.1
0.0
-6.3
0.2
335.1
Book value Dec. 31, 2013
307.1
210.0
478.8
391.0
0.8
0.1
786.7
601.1
[€ million]
ACQUISITION/PRODUCTION COST
Status Jan. 1, 2013
Additions
Disposals
Reclassifications
AMORTIZATION
112
Concessions
and licenses
Goodwill
Payments made
on account
Total
Changes in intangible assets from January 1 to December 31, 2014:
616.1
46.1
19.8
23.7
0.0
-13.7
1.3
693.3
504.9
32.0
24.3
0.0
0.0
0.0
0.0
561.2
0.8
0.0
0.0
0.8
0.0
0.0
-0.7
0.9
1,121.8
78.1
44.1
24.5
0.0
-13.7
0.6
1,255.4
Status Jan. 1, 2014
Impairment losses
Disposals
Reclassifications
309.0
0.0
10.5
58.0
1.6
-0.1
-11.0
0.0
368.0
26.1
0.0
0.7
0.0
0.0
0.0
0.0
0.0
26.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
335.1
0.0
11.2
58.0
1.6
-0.1
-11.0
0.0
394.8
325.3
307.1
534.4
478.8
0.9
0.8
860.6
786.7
[€ million]
Status Jan. 1, 2014
Additions
Disposals
Reclassifications
AMORTIZATION
Goodwill was subjected to an impairment test as at December 31, 2014. The basic assumptions used for determining
the value in use of the cash generating units included a growth rate of 2.0 percent (previous year: 2.0 percent) and
WACCs ranging from 7.3 percent to 11.0 percent (previous year: ranging from 6.3 percent to 9.7 percent). On this
basis, no impairment loss was identified.
An impairment test was also carried out with a variation in the discount rate of up to plus/minus 2.0 percentage points.
On this basis too, there was no need to record an impairment loss.
113
Land and buildings
Machinery and
equipment
Other fixtures, fittings
and office equipment
Payments made
on account
Work in progress
Total
(2) Tangible assets
Changes in tangible assets from January 1 to December 31, 2013:
963.2
35.2
-29.1
20.3
0.0
-3.5
17.8
1,003.9
1,960.4
67.7
-59.9
48.0
0.0
-72.0
44.2
1,988.4
663.0
15.9
-15.3
48.8
0.5
-24.6
21.2
709.5
15.7
1.2
-0.8
14.4
0.0
-1.7
-19.4
9.4
74.6
0.2
-3.7
80.3
0.0
-0.8
-64.9
85.7
3,676.9
120.2
-108.8
211.8
0.5
-102.6
-1.1
3,796.9
Status Jan. 1, 2013
Impairment losses
Disposals
Reclassifications
453.4
15.9
-13.4
28.9
0.0
0.0
-2.8
0.4
482.4
1,361.4
42.7
-39.6
95.8
2.6
-0.1
-64.2
-2.0
1,396.6
490.4
11.9
-10.8
57.8
0.1
0.4
-21.6
1.6
529.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.4
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.3
2,305.6
70.5
-63.8
182.5
2.7
0.3
-88.7
0.0
2,409.1
521.5
509.8
591.8
599.0
179.7
172.6
9.4
15.7
85.4
74.2
1,387.8
1,371.3
[€ million]
Status Jan. 1, 2013
Additions
Disposals
Reclassifications
DEPRECIATION
114
Land and buildings
Machinery and
equipment
Other fixtures, fittings
and office equipment
Payments made
on account
Work in progress
Total
Changes in tangible assets from January 1 to December 31, 2014:
1,003.9
3.2
28.8
23.6
0.6
-14.2
24.7
1,070.6
1,988.4
6.1
54.0
57.3
4.0
-70.4
53.2
2,092.6
709.5
1.6
18.1
45.6
0.1
-35.9
23.9
762.9
9.4
0.0
0.8
19.1
0.0
-0.2
-13.8
15.3
85.7
0.0
4.0
98.5
0.0
-0.9
-88.5
98.8
3,796.9
10.9
105.7
244.1
4.7
-121.6
-0.5
4,040.2
Status Jan. 1, 2014
Impairment losses
Disposals
Reclassifications
482.4
0.2
11.6
30.2
1.8
0.6
-8.7
0.1
518.2
1,396.6
2.9
43.4
95.7
5.5
3.1
-61.9
0.8
1,486.1
529.8
1.2
12.0
60.0
0.2
0.2
-33.5
-0.8
569.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
2,409.1
4.3
67.0
185.9
7.5
3.9
-104.1
0.1
2,573.7
552.4
521.5
606.5
591.8
193.8
179.7
15.3
9.4
98.5
85.4
1,466.5
1,387.8
[€ million]
Status Jan. 1, 2014
Additions
Disposals
Reclassifications
DEPRECIATION
In the financial year under review, Freudenberg received government grants for tangible assets in the amount of
€1.2 million (previous year: €0.1 million). The grants mainly concerned investment promotion and were netted against
acquisition costs.
115
Leased assets
Leased assets are recognized under non-current assets at the following book values:
[€ million]
Dec. 31, 2013
Dec. 31, 2014
0.3
3.7
0.9
2.5
7.4
0.1
4.3
1.1
1.1
6.6
Intangible assets
Land and buildings
Machinery and equipment
Other fixtures, fittings and office equipment
Book value of leased assets recognized
Up to 1 year
1 to 5 years
Over 5 years
Dec. 31, 2013
Up to 1 year
1 to 5 years
Over 5 years
Dec. 31, 2014
The finance lease contracts were concluded at arm’s-length business conditions. Such leases normally include favorable
purchase options. The lease contracts do not provide for any contingent rent payments or significant restrictions.
Finance leases
Minimum lease payments
Discount
Present value
2.5
0.1
2.4
1.4
0.1
1.3
1.9
0.3
1.6
5.8
0.5
5.3
1.4
0.0
1.4
1.3
0.1
1.2
4.8
1.1
3.7
7.5
1.2
6.3
Operating leases
Minimum lease payments
61.7
92.8
37.3
191.8
63.7
110.9
42.7
217.3
[€ million]
Lease payments totaling €85.9 million (previous year: €81.0 million) under operating leases were recognized with an
effect on net income.
116
(3) Investment properties
Details of land and buildings held by the Freudenberg Group as investment properties are shown in the table below:
[€ million]
2013
2014
Third-party use
Rent income
100 %
100 %
3.9
4.0
There were no significant direct operating expenses in the year under review or in the previous year.
There are no restrictions on the saleability of investment properties. Freudenberg is not under any contractual
obligations to purchase, build or develop investment properties. Furthermore, Freudenberg is not under any contractual
obligations to repair or maintain such investment properties going beyond its statutory obligations.
117
Changes in investment properties from January 1 to December 31, 2013:
[€ million]
Status Jan. 1, 2013
Additions
Disposals
Reclassifications
48.2
0.0
0.0
0.0
0.0
0.0
0.0
48.2
DEPRECIATION
118
Status Jan. 1, 2013
Impairment losses
Disposals
Reclassifications
27.4
0.0
0.0
1.5
0.0
0.0
0.0
0.0
28.9
19.3
20.8
Changes in investment properties from January 1 to December 31, 2014:
[€ million]
Status Jan. 1, 2014
Additions
Disposals
Reclassifications
48.2
0.0
0.0
2.8
0.0
0.0
0.0
51.0
DEPRECIATION
Status Jan. 1, 2014
Impairment losses
Disposals
Reclassifications
28.9
0.0
0.0
1.5
0.0
0.0
0.0
0.0
30.4
20.6
19.3
The fair value of investment properties was €43.8 million (previous year: €38.2 million) and was calculated on the basis
of discounted cash flows (level 3).
119
(4) Investments in joint ventures
The joint venture agreements with Trelleborg AB, Trelleborg, Sweden, and NOK Corporation, Tokyo, Japan, are of major
importance for Freudenberg.
The purpose of the TrelleborgVibracoustic joint venture with Trelleborg AB is to strengthen activities in the automotive business. Trelleborg AB and Freudenberg SE each hold a stake of 50 percent.
NOK-Freudenberg Group China is a 50:50 joint venture between the Japanese NOK Corporation and Freudenberg SE
with the objective of serving the high-growth Chinese market with locally-produced and imported sealing and vibration
control products.
The summarized financial information of the joint venture parent companies is set out below:
TrelleborgVibracoustic GmbH,
Darmstadt, Germany
[€ million]
Current assets
Of which: cash and cash equivalents
Non-current assets
Current liabilities
Of which: current financial liabilities
Of which: non-current financial liabilities
Equity without non-controlling interests
Freudenberg share
Pro-rata share in equity
Disproportionate capital measures of the shareholders
At-equity measurement
Sales
Profit or loss from continuing operations
Total comprehensive income
Of which: depreciation and amortization
Of which: interest income
Of which: interest expenses
Of which: income tax expense or income
120
NOK-Freudenberg
Asia Holding Co. Pte. Ltd.,
Singapore
Dec. 31, 2013 Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2014
568.9
168.4
640.1
593.2
241.6
150.3
3.7
40.2
425.3
50.0 %
212.6
9.8
222.4
604.7
193.5
707.2
595.9
192.8
174.0
1.9
35.3
506.7
50.0 %
253.4
7.2
260.6
135.6
48.3
118.8
63.0
3.5
0.8
0.0
0.0
190.6
50.0 %
95.3
0.0
95.3
160.1
64.2
134.2
63.2
3.8
0.0
0.0
0.0
231.1
50.0 %
115.6
0.0
115.6
2013
2014
2013
2014
1,679.5
40.4
-12.9
27.5
-67.1
1.1
-8.8
-28.2
1,779.3
73.5
32.5
106.0
-72.8
3.5
-7.6
-25.9
260.3
29.4
-3.9
25.5
-12.1
0.3
-0.5
-10.8
277.7
36.1
16.7
52.8
-12.2
0.5
-0.6
-11.9
Freudenberg received dividends in the amount of €14.3 million (previous year: €0.0 million) from TrelleborgVibracoustic
GmbH and €7.8 million (previous year: €1.9 million) from NOK-Freudenberg Asia Holding Co. Pte. Ltd.
The total carrying amount of interests in all individual joint ventures which are not material was €36.9 million (previous
year: €30.6 million).
The pro-rata share of the profit or loss from continuing operations of all individual joint ventures classed as not material
was €0.8 million (previous year: €0.2 million) and the pro-rata share in other comprehensive income was €- 0.1 million
(previous year: €-3.7 million). The pro-rata share in total comprehensive income was therefore €0.7 million (previous
year: €-3.5 million).
(5) Investments in associated companies
The most important non-controlling interests of Freudenberg were those in the Japanese companies NOK Corporation
and Japan Vilene Company Ltd., both with registered offices in Tokyo, Japan.
The NOK Group manufactures and supplies sealing products, flexible printed circuits, roll products for office equipment
and further products such as specialty lubricants.
Japan Vilene Company Ltd. manufactures nonwovens for the clothing, automotive, electrical and consumer goods
industries as well as for applications in the medical sector and filtration.
121
These two significant associated companies published the following figures in their consolidated interim financial statements as at December 31 in each case:
[€ million]
Current assets
Non-current assets
Current liabilities
Treasury shares
Equity without treasury shares and non-controlling
interests
Freudenberg share
Pro-rata share in equity
Goodwill
Disproportionate capital measures of the shareholders
At-equity measurement
Sales
Profit or loss from continuing operations
NOK Corporation
Dec. 31, 2013 Dec. 31, 2014
Japan Vilene Company Ltd.
Dec. 31, 2013 Dec. 31, 2014
2,060.0
2,332.8
1,306.6
553.3
-4.8
208.9
2,584.7
2,619.4
1,437.1
714.0
-2.9
271.2
181.9
201.9
83.8
61.3
0.0
0.0
191.2
216.0
96.9
42.3
-0.1
0.0
2,328.8
25.10 %
584.5
7.1
0.0
591.6
2,784.7
25.10 %
699.0
7.1
0.0
706.1
238.7
33.40 %
79.7
0.6
-15.5
64.8
268.1
33.40 %
89.6
0.6
-15.5
74.7
2013
2014
2013
2014
4,423.4
218.5
407.4
625.9
4,779.6
355.5
319.4
674.9
399.0
25.6
26.3
51.9
399.9
19.2
12.6
31.8
The decrease in the other comprehensive income of the two companies is due to exchange differences on translating
financial statements in foreign currencies and to effects from changes in the value of securities available for sale.
Freudenberg received dividends in the amount of €7.6 million (previous year: €6.5 million) from NOK Corporation and
€2.6 million (previous year: €1.7 million) from Japan Vilene Company Ltd.
As at December 31, 2014, the market values of the shareholdings were €924.5 million (¥134,283.7 million) (previous
year: €517.2 million; ¥74,746.9 million) for NOK Corporation and €74.8 million (¥10,870.8 million) (previous year:
€68.3 million; ¥9,871.9 million) for Japan Vilene Company Ltd.
The total carrying amount of interests in all associated companies classed as not material was €39.2 million (previous
year: €35.2 million).
The pro-rata share in the profit or loss from continuing operations of all individual associated companies classed as not
material was €7.0 million (previous year: €7.8 million) and the pro-rata share in the other comprehensive income of these
companies was €1.9 million (previous year: €-3.3 million). The pro-rata share in the total comprehensive income was
therefore €8.9 million (previous year: €4.5 million).
122
(6) Inventories
Inventories break down as follows:
[€ million]
Dec. 31, 2013
Dec. 31, 2014
202.4
104.3
389.5
1.5
697.7
229.1
116.9
447.6
4.9
798.5
Raw materials and consumables
Work in progress
Finished goods and merchandise
Payments made on account
Inventories rose by €100.8 million compared with the previous year, chiefly as a result of adaptation to market demand.
After eliminating the effects of changes in the consolidated group and exchange rate effects, inventories rose by about
9 percent.
Write-downs of inventories totaling €15.9 million (previous year: €22.6 million) were recognized as expenses in the
reporting year.
Write-ups totaling €10.9 million (previous year: €11.3 million) were effected on inventories as the reason for the
impairment losses concerned no longer existed.
The inventories shown are not subject to any significant restrictions on title or disposal.
846.3
187.2
1,033.5
929.5
142.4
1,071.9
0.0
28.6
28.6
Dec. 31, 2014
0.0
53.0
53.0
Residual term
more than 1 year
846.3
134.2
980.5
Residual term
up to 1 year
Dec. 31, 2013
Trade receivables
Other assets
Residual term
more than 1 year
[€ million]
Residual term
up to 1 year
(7) Receivables
929.5
171.0
1,100.5
After adjustment for effects resulting from changes in the consolidated group and exchange rate effects,
trade receivables rose by about 5 percent.
123
The other assets include pension plan assets in excess of the corresponding pension obligations in the amount of
€1.7 million (previous year €25.4 million).
The other assets also include other tax receivables in the amount of €39.8 million (previous year: €38.0 million) and
liability insurance claims totaling €5.3 million (previous year: €6.5 million).
The claims for reimbursement in connection with recognized provisions, which are included in other assets, are shown in
the other provisions under note (12).
(8) Securities and cash at bank and in hand
[€ million]
Securities
Checks and cash in hand
Cash at banks
Dec. 31, 2013
Dec. 31, 2014
153.8
5.8
513.3
672.9
319.5
6.0
592.2
917.7
The securities mainly concern commercial papers issued by industrial companies.
(9) Non-current assets held for sale and disposal groups
In the 2014 financial year, there were no non-current assets held for sale or disposal groups. The land with a book value
of €7.5 million disclosed in the previous year was disposed of in the 2014 financial year.
124
(10) Equity
The subscribed capital in the amount of €450.0 million (previous year: €450.0 million) consists of 450 million
no-par-value registered shares. The sole shareholder of Freudenberg SE is Freudenberg & Co. Kommanditgesellschaft,
Weinheim (hereafter: Freudenberg & Co. KG).
The reserves break down as follows:
[€ million]
Capital reserves
Retained earnings
Dec. 31, 2013
Dec. 31, 2014
50.2
1,951.8
2,002.0
50.2
2,344.4
2,394.6
The capital reserves consist of contributions in kind made by the shareholder.
The retained earnings include net income earned by the Group in the past and not distributed as well as reserves of
companies included in the consolidated financial statements including expenses and income recorded without effect on
net income.
The profit distributed in the reporting year amounted to €90.5 million (previous year: €73.3 million). This corresponded to
a profit per share of €0.20 (previous year: €0.16).
The Board of Management proposes that the 2014 net retained profit in the amount of €896.7 million (previous year:
€713.7 million) should be carried forward to new account.
In the reporting year, income (+) and expenses (-) which had previously been recorded without an effect on net income with
respect to the following components of other comprehensive income were reclassified to the statement of profit or loss:
[€ million]
Securities
Derivative financial instruments
Dec. 31, 2013
Dec. 31, 2014
-1.7
-0.2
-5.9
-7.8
-0.3
0.0
-0.3
-0.6
In the 2014 financial year, tax effects (income (+)/expenses (-)) recorded without effect on net income are
attributable to the various items of other comprehensive income as follows:
[€ million]
Remeasurement of defined benefit plans
Securities and other items
Dec. 31, 2013
Dec. 31, 2014
-4.2
-1.7
0.7
-5.2
40.0
0.1
-7.7
32.4
125
The rise in non-controlling interests in the equity of consolidated affiliated companies from €322.9 million to €366.4 million
is mainly the result of the allocation of profit for the year and exchange rate differences. Dividend payments had an
offsetting effect.
In the case of the following affiliated company, the consolidated financial statements include significant non-controlling
interests in the amount of 25 percent of the shares:
[€ million]
Freudenberg-NOK General Partnership, Plymouth, USA
Profit (+)/loss (-) attributable to non-controlling interests
Total amount of non-controlling interests
Dec. 31, 2013
Dec. 31, 2014
10.5
90.7
13.4
109.1
This affiliated company is included in the consolidated financial statements with the following values:
[€ million]
Freudenberg-NOK General Partnership
Dec. 31, 2013
Dec. 31, 2014
Current assets
Non-current assets
Current liabilities
293.7
193.6
80.6
61.5
348.5
232.3
90.9
64.1
Sales
Profit (+)/loss (-)
2013
496.9
36.6
24.7
2014
529.2
38.6
85.8
Freudenberg-NOK General Partnership paid dividends in the amount of €5.1 million (previous year: €1.5 million) to the
holder of the non-controlling interests.
Other non-controlling interests especially concern the EagleBurgmann Business Group, where they arise as a result of the
contractual agreements concerning control.
126
(11) Provisions for pensions and similar obligations
The provisions for pensions mainly concern German, US and British companies. This item includes obligations arising from
current pensions and future pension entitlements.
The Freudenberg Group pension scheme consists of both defined contribution and defined benefit pension plans. Defined
benefit plans include both fixed salary and final salary plans.
The pension obligations of German companies are commitments financed by provisions. These obligations are subject to
the rules of the pension plan concerned and the applicable statutory provisions. The plans include benefit commitments
dependent on service periods and on salaries and provide for disability benefits and benefits for surviving dependents as
well as for retirement benefits.
The pension obligations of US and British companies are mainly funded commitments, financed chiefly by employers’
contributions. These plans are managed by third party pension funds. The representatives of the pension funds are legally
obliged to act in the interest of all participants in the plan. In cooperation with investment advisers, they are responsible for
the development and regular review of investment strategies for the plan assets. Commitments based on age and years
of service include both retirement benefits and certain forms of survivor benefits. Most US and British plans are frozen and
future entitlements can no longer be earned by plan participants.
Apart from pension obligations, these provisions also include obligations similar to pensions, such as amounts paid to
employees upon the termination of their employment which do not constitute termination benefits. These benefits vary in
accordance with the legal, tax and economic conditions in the countries concerned.
All defined benefit schemes of the Freudenberg Group are subject to typical actuarial risks, especially investment and
interest risks.
Current service cost and net interest on the net defined benefit liability are disclosed in the statement of profit or loss under
personnel expenses in the relevant functional areas.
In the case of the defined contribution plans, there are no additional obligations apart from the payment of contributions.
Contributions paid are expensed under personnel expenses and amounted to €65.1 million in 2014 (previous year:
€63.9 million).
127
The defined benefit obligations were calculated on actuarial principles by the projected unit credit method. For the
German companies, the calculation was based on the following actuarial assumptions:
Discount rate
Pension trend
Dec. 31, 2013
Dec. 31, 2014
3.30 %
2.00 %
2.20 %
2.00 %
As a result of the pension plan regulations, the assumed trend in salaries and wages only has an effect on the value of
pension obligations in exceptional cases.
In the case of the foreign companies, the actuarial assumptions used for the calculations were within the following ranges:
Discount rate
Salary trend
Pension trend
Dec. 31, 2013
Dec. 31, 2014
1.7 % – 5.1 %
0.0 % – 2.9 %
0.0 % – 3.3 %
1.2 % – 4.2 %
0.0 % – 4.0 %
0.0 % – 3.0 %
Dec. 31, 2013
Dec. 31, 2014
465.9
25.4
440.5
620.0
1.7
618.3
Dec. 31, 2013
Dec. 31, 2014
271.3
-281.4
-10.1
450.6
440.5
359.3
-327.0
32.3
586.0
618.3
Net obligations are shown in the following items of the statement of financial position:
[€ million]
Other assets
Net obligations
Net obligations are calculated as follows:
[€ million]
Present value of funded obligations
Fair value of plan assets
Surplus (-)/deficit (+)
Present value of unfunded obligations
Net obligations
128
In the year under review, defined benefit obligations developed as follows:
[€ million]
Present value of defined benefit obligations, Jan. 1
Current service cost
Interest cost
Gains (-) and losses (+) from remeasurement of defined benefit obligations
Gains (-) and losses (+) on settlements
Past service cost
Contributions by plan participants
Liabilities extinguished on settlements
Benefits paid
Reclassifications
Other changes
Present value of defined benefit obligations, Dec. 31
2013
2014
718.9
13.4
25.2
-5.1
0.0
2.6
0.0
0.0
-30.3
15.7
-8.3
-10.2
721.9
721.9
15.9
29.1
150.8
-3.1
-0.2
0.7
-11.4
-36.1
28.1
23.5
26.1
945.3
2013
2014
271.9
11.0
7.6
11.0
0.0
0.0
-12.3
0.0
0.5
-8.3
281.4
281.4
14.6
0.3
10.6
0.7
-11.4
-15.7
1.1
19.3
26.1
327.0
Dec. 31, 2013
Dec. 31, 2014
133.7
133.3
14.1
281.1
123.1
90.4
12.4
225.9
In the year under review, plan assets developed as follows:
[€ million]
Fair value of plan assets, Jan. 1
Interest income
Gains (-) and losses (+) from remeasurement of plan assets
Contributions by employer
Contributions by plan participants
Liabilities extinguished on settlements
Benefits paid
Reclassifications
Other changes
Fair value of plan assets, Dec. 31
The fair value of plan assets is distributed as follows:
Plan assets with quoted prices in active markets:
[€ million]
Equity instruments
Interest-bearing securities
Other assets
129
Plan assets without quoted prices in active markets:
[€ million]
Other assets
Dec. 31, 2013
Dec. 31, 2014
0.3
0.3
101.1
101.1
As part of the optimization of the investment portfolio, Freudenberg acquired insurance contracts in the course of the
reporting year which were measured at the fair value of the obligation under the corresponding benefit plans. The loss
resulting from this acquisition, which is calculated as the difference between the acquisition cost of the insurance contracts
and the fair value of the obligation, was recognized in other comprehensive income.
In the reporting year, gains and losses from the remeasurement of the defined benefit obligations and plan assets
developed as follows:
[€ million]
Gains (+) and losses (-) from remeasurement, Jan. 1
Gains (+) and losses (-) from remeasurement of defined benefit obligations
Of which as a result of changed financial assumptions
Of which as a result of changed demographic assumptions
Of which as a result of experience-based adjustments
Gains (+) and losses (-) from remeasurement of plan assets
Reclassifications/other changes
Gains (+) and losses (-) from remeasurement, Dec. 31
2013
2014
-201.3
5.1
5.0
-1.6
1.7
7.6
-2.0
2.6
-188.0
-188.0
-150.8
-126.7
-9.4
-14.7
0.3
0.2
-5.9
-344.2
In 2015, contributions in the amount of €7.1 million (previous year: €9.9 million) will probably be made to plan assets.
The weighted average duration of defined benefit obligations as at the end of the reporting year was 16.1 years
(previous year: 15.5 years).
The possible changes in the defined benefit obligation as a result of changes in the discount rate, a major actuarial
assumption, were calculated on the basis of the projected unit credit method. If the discount rate as at the statement of
financial position date had been 0.25 percentage points lower, the present value of defined benefit obligations as at the
statement of financial position date would have been €39.9 million (previous year: €29.0 million) higher. If the discount
rate as at the statement of financial position date had been 1.00 percentage points higher, the present value of defined
benefit obligations as at the statement of financial position date would have been €132.7 million (previous year:
€96.7 million) lower.
130
Provisions for personnel
obligations
Provisions for warranties,
guarantees and onerous
contracts
Provisions for rebates,
bonuses and commissions
Miscellaneous
provisions
Total
(12) Other provisions
Status Jan. 1, 2014
Increases
Unwinding of discount and
effect of change in discount rate
Amounts used
Reversal
Other changes
249.4
174.6
46.7
28.3
23.7
26.9
125.0
137.3
444.8
367.1
0.2
-141.1
-20.0
6.3
-25.1
244.3
0.0
-14.0
-11.0
1.0
0.3
51.3
0.0
-19.9
-2.5
1.3
0.2
29.7
-0.2
-62.1
-21.3
3.6
-0.9
181.4
0.0
-237.1
-54.8
12.2
-25.5
506.7
Of which long-term
Of which short-term
45.3
199.0
2.8
48.5
0.6
29.1
21.0
160.4
69.7
437.0
1.3
0.0
0.0
1.8
3.1
[€ million]
Reimbursement claims connected with
provisions and shown in the statement
of financial position under other assets
The provisions for personnel obligations mainly include other long- and short-term employee benefits, provisions for
vacation not taken, social security contributions and long service premiums.
The miscellaneous provisions include, inter alia, provisions for restructuring, litigation risks, advertising and environmental
protection.
131
Residual term
more than
5 years
Dec. 31, 2013
Residual term
up to 1 year
Residual term
1 to 5 years
Residual term
more than
5 years
Dec. 31, 2014
Liabilities to banks
(= financial debt)
Other financial debt,
including leasing
Shareholder’s loans
Accounts of
Freudenberg & Co. KG Partners
Financial debt
Trade payables
Advance payments
received on orders
Miscellaneous liabilities
Other liabilities
Residual term
1 to 5 years
[€ million]
Residual term
up to 1 year
(13) Liabilities
48.8
106.4
90.3
245.5
56.6
107.4
70.3
234.3
6.8
310.0
2.2
225.0
1.6
75.0
10.6
610.0
6.0
340.0
1.3
225.0
4.3
75.0
11.6
640.0
153.5
519.1
468.8
172.4
506.0
0.0
0.0
166.9
0.0
325.9
1,192.0
468.8
156.3
558.9
524.1
194.2
527.9
0.0
0.0
149.6
0.0
350.5
1,236.4
524.1
15.8
283.2
299.0
0.0
62.1
62.1
0.0
1.3
1.3
15.8
346.6
362.4
14.9
296.9
311.8
0.0
77.9
77.9
0.0
0.4
0.4
14.9
375.2
390.1
1,286.9
568.1
168.2
2,023.2
1,394.8
605.8
150.0
2,150.6
The average interest rate on long-term liabilities to banks is 1.93 percent (previous year: 1.83 percent).
132
The interest payable on the certificates of indebtedness (“Schuldscheindarlehen“) included in the liabilities to banks is
based on variable and fixed components. Cash flows for variable and fixed interest and repayment of principal will
probably be as follows from 2015 to 2023:
Certificates of indebtedness
Book value
Dec. 31, 2013
170.0
2014
3.3
Cash flows
2015
2016 - 2023
3.4
188.4
Certificates of indebtedness
Dec. 31, 2014
170.0
2015
3.1
2016
3.1
[€ million]
2017 - 2023
179.9
In the reporting year, other financial debt includes loans granted by third parties, on the long-term component of
which interest is payable at an average rate of 3.12 percent (previous year: 2.20 percent). This item also includes liabilities
in connection with finance leasing, with an average interest rate of 3.57 percent (previous year: 4.11 percent).
Further details are given in the information on finance leases under note (2).
Interest on shareholder’s loans is payable at a rate between 1.18 and 4.47 percent (previous year: between
1.62 and 3.87 percent).
As in the previous year, the interest rates applicable to accounts of Freudenberg & Co. KG Partners vary between
1.00 and 5.50 percent.
Miscellaneous liabilities include liabilities for tooling cost contributions, other taxes, outstanding wages and salaries,
holiday pay and special bonuses, as well as liabilities in connection with social security.
133
Contingent liabilities and other financial obligations
[€ million]
Contingent liabilities
Bills of exchange
Guarantees
Miscellaneous contingent liabilities
Other financial commitments
Commitments arising from leasing contracts*
Purchase commitments in connection with intangible assets
Purchase commitments in connection with tangible assets
Purchase commitments in connection with the delivery of goods and services
Miscellaneous commitments
Dec. 31, 2013
Dec. 31, 2014
5.2
3.5
5.8
14.5
7.2
1.2
2.7
11.1
190.0
0.2
20.3
70.3
5.1
285.9
206.1
0.6
32.1
65.9
4.2
308.9
* See also the explanatory remarks on leased assets in note (2) to the Consolidated Financial Statements.
In addition, the following contingent liabilities and other financial commitments concern joint ventures:
[€ million]
Contingent liabilities
Guarantees
Warranties
Other financial commitments
Commitments arising from leasing contracts*
Purchase commitments in connection with intangible assets
Purchase commitments in connection with tangible assets
Purchase commitments in connection with the delivery of goods and services
Miscellaneous commitments
* See also the explanatory remarks on leased assets in note (2) to the Consolidated Financial Statements.
134
Dec. 31, 2013
Dec. 31, 2014
2.0
0.2
2.2
2.0
0.2
2.2
29.0
0.2
6.0
6.1
0.0
41.3
31.0
0.2
4.3
5.7
0.1
41.3
Additional information on financial instruments
The term “financial instrument” is used to refer to any contract that gives rise to both a financial asset of one enterprise
and a financial liability or equity instrument of another enterprise. A distinction is made between primary and derivative
financial instruments. Primary financial instruments in the case of the purchase or sale of assets are recognized at the settlement date, i.e. the delivery of the asset concerned. Derivative financial instruments are recognized as of the trade date. In
the event of loss of control over the contractually agreed rights to a financial asset, the asset concerned is derecognized.
Financial liabilities are derecognized on the statement of financial position when the commitment is discharged or cancelled, or expires.
Under IAS 39, financial instruments are divided into the following categories:
Loans and receivables
This category includes financial assets with fixed or determinable payments that are not quoted in an active market.
Held-to-maturity investments
Held-to-maturity investments are financial assets with fixed or determinable payments and fixed maturity that an entity
has the positive intention and ability to hold to maturity.
Available-for-sale financial assets
This category includes all the other financial assets which cannot be allocated to any of the categories mentioned
above.
Financial assets or financial liabilities at fair value through profit or loss.
These include:
– financial assets or financial liabilities held for trading and
– financial assets or financial liabilities designated by the entity as at fair value through profit or loss upon
initial recognition.
The Freudenberg Group does not hold any financial assets or financial liabilities for trading purposes.
Freudenberg did not avail itself of the fair value option under IAS 39 under which it is possible to measure any financial
asset or financial liability at fair value through profit or loss.
135
Primary financial instruments
Primary financial instruments are assigned to categories on the basis of the relevant items in the statement of financial
position. The allocation to the categories unambiguously defines the accounting and measurement of the instruments.
LIABILITIES
Financial debts
Trade payables
Other liabilities
136
11.9
846.3
91.9
672.9
1,623.0
81.1
13.2
81.1
Book value at
Dec. 31, 2013
13.2
Other financial liabilities
at amortized cost
Available-for-sale financial
assets at amortized cost
ASSETS
Trade receivables
Other assets
assets at fair value without
effect on profit or loss
[€ million]
Loans and receivables at
amortized cost
Loans, receivables and liabilities are recognized at amortized cost. Available-for-sale financial assets are recognized at
fair value without effect on net income except where the fair value of such assets cannot be reliably determined. In such
cases, these assets are recognized at acquisition costs. Any impairments are shown in the statement of profit or loss with
an effect on net income.
106.2
846.3
91.9
672.9
1,717.3
1,192.0
468.8
161.2
1,822.0
1,192.0
468.8
161.2
1,822.0
10.0
929.5
94.6
917.7
1,951.8
94.7
13.4
94.7
LIABILITIES
Financial debts
Trade payables
Other liabilities
Book value at
Dec. 31, 2014
13.4
Other financial liabilities
at amortized cost
assets at amortized cost
ASSETS
Trade receivables
Other assets
assets at fair value without
effect on profit or loss
[€ million]
Loans and receivables at
amortized cost
118.1
929.5
94.6
917.7
2,059.9
1,236.4
524.1
178.5
1,939.0
1,236.4
524.1
178.5
1,939.0
The Freudenberg Group currently does not hold any held-to-maturity investments.
The fair values of financial assets and liabilities recognized at amortized cost are approximately equal to their book
values.
The fair values of financial instruments held by the Freudenberg Group and measured at fair value were determined on
the basis of active markets for identical assets (level 1 input factors) at €13.4 million (previous year: €13.2 million).
137
Between 61
and 120 days
Between 121
and 180 days
Between 181
and 360 days
More than
360 days
16.8
0.2
4.7
0.1
5.0
1.1
1.9
4.1
Between 181
and 360 days
More than
360 days
Thereof: not impaired as at Dec. 31, 2014 and
past due within the following times
Between 121
and 180 days
748.0
87.9
Up to 60 days
Thereof: neither past
due nor impaired as at
Dec. 31, 2013
929.5
94.6
119.9
1.8
Between 61
and 120 days
Trade receivables
Other assets
685.7
83.3
Thereof: not impaired as at Dec. 31, 2013 and
past due within the following times
Up to 60 days
[€ million]
846.3
91.9
Thereof: neither past
due nor impaired as at
Dec. 31, 2014
Trade receivables
Other assets
Book value
at Dec. 31, 2014
[€ million]
Book value
at Dec. 31, 2013
Credit risks
133.0
2.2
24.2
0.1
11.4
0.4
4.1
1.5
2.1
0.8
In the case of trade receivables and other assets for which no impairments have been recognized and which are not
past due, no defaults are expected. The major part of trade receivables (normally between 70 and 90 percent of each
receivable) is covered by credit insurance. Otherwise, the book value represents the maximum credit risk associated with
each receivable.
138
Impairment losses to trade receivables developed as follows:
[€ million]
2013
2014
Impairment losses as at Jan. 1
Additions (expenses for impairments)
Amounts used
Reversals (write-ups)
Impairment losses as at Dec. 31
20.7
1.2
-0.5
8.3
-3.0
-4.7
22.0
22.0
1.9
0.9
8.2
-4.3
-5.7
23.0
2013
2014
1.9
0.1
-0.1
0.0
1.9
1.9
0.9
0.0
-0.4
2.4
Impairment losses to other assets developed as follows:
[€ million]
Impairment losses as at Jan. 1
Additions (expenses for impairments)
Amounts used
Reversals (write-ups)
Impairment losses as at Dec. 31
In the year under review, impairment losses to receivables totaling €6.1 million (previous year: €4.7 million) were reversed
as the reason for the impairment no longer applied and impairment losses in the amount of €9.1 million (previous year:
€8.4 million) were set up. These impairment losses were recognized where payments were no longer expected or no
longer expected in full.
139
Freudenberg SE is responsible for all the financing activities of the Freudenberg Group and also operates the cash
management system for the entire Freudenberg group of companies. Group companies obtain the financing they require
via cash pools or loans provided by internal financing companies or, in some countries, in the form of bank loans guaranteed by Freudenberg SE.
The limits of action, responsibilities and control procedures in connection with derivative financial instruments are laid down
in a binding form in internal directives for Group companies. The Freudenberg Group does not expose itself to additional
financial risks through speculation with derivative financial instruments but uses such instruments only for hedging, and
therefore reducing, risks in connection with underlying transactions. Future transactions are only hedged if there is a high
probability of occurrence.
Freudenberg SE uses derivative financial instruments for hedging interest rate and foreign exchange risks.
Fair values are determined on the basis of quoted prices, accepted market information systems or discounted cash flows.
Derivative financial instruments for hedging recognized assets or liabilities (fair value hedges) are shown in the statement of
financial position at fair value. Changes in the fair value are recorded in the statement of profit or loss. Financial instruments
for hedging future cash flows (cash flow hedges) are also included in the statement of financial position at fair value, but
changes in the fair value of such instruments are recognized without effect on net income under retained earnings, taking
into consideration the applicable income taxes. Such changes are recognized in the statement of profit or loss when the
underlying transactions concerned are effected. Ineffective portions of hedge transactions are always recognized in the
statement of profit or loss.
As at December 31, 2014, there were no derivatives entered into for the purpose of interest rate hedging. In the previous
year, interest rate swaps with a negative fair value of €0.1 million had been recognized. The face value of these
derivatives was €0.7 million.
As at December 31, 2014, the face value of currency futures concluded for hedging foreign exchange risks and still open
was €18.8 million (previous year: €14.4 million). The positive fair value of these instruments as at December 31, 2014
was €1.7 million (previous year: €0.2 million).
Of the total volume of derivatives, 0.5 percent (previous year: 4.6 percent) had a term of more than one year.
140
The following fair values of derivative financial instruments are included in the other assets and other liabilities respectively:
Dec. 31, 2013
Dec. 31, 2014
Other assets
Currency futures
0.2
1.8
Other liabilities
Currency futures
Interest rate swaps
0.0
0.1
0.1
0.0
[€ million]
In the reporting year, value changes in the case of currency futures (cash flow hedges) are only recognized in equity with
an insignificant value. In the previous year, value changes (gains) in the case of interestrate swaps and currency futures
with a value of €0.4 million were recognized in equity.
The fair values of currency futures were determined on the basis of the quoted currency future prices for similar financial
instruments (level 2).
Risks in connection with financial instruments
The Freudenberg Group is exposed to risks resulting from changes in exchange rates and interest rates and uses conventional derivative instruments such as interest rate swaps, caps and currency futures to hedge risks in connection with
business operations and financing to a limited extent. The use of these instruments is governed by Freudenberg Group
directives within the risk management system which lay down limits on the basis of the value of the underlying transactions,
define approval procedures, exclude the use of derivative instruments for speculative purposes, minimize credit risks and
govern internal reporting and the separation of functions. Compliance with these directives and the proper handling and
measurement of transactions are regularly verified, observing the principle of separation of functions. Furthermore, risk
management for financial instruments is integrated in the Freudenberg Group risk management system.
The risks which are hedged are chiefly as follows:
Interest rate risk:
In the case of fixed-interest loans or investments, there is a risk that changes in the market interest rate will affect the market
value of the item concerned (market-value risk contingent on interest rates). In contrast, variable interest loans and investments are not subject to this risk as the interest rate is adjusted to reflect changes in the market situation with a very short
delay. However, there is a risk with respect to future interest payments as a result of short-term fluctuations in market interest
rates (cash flow risk contingent on interest rates).
141
Risks associated with interest rate changes mainly affect long-term items. A fall in long-term interest rates results in a
decrease in the fair value shown on the statement of financial position for derivative financial instruments concluded for
interest rate hedging.
If market interest rates had been 0.5 percentage points higher or lower, on average, as of December 31, 2014, this
would have had only an insignificant impact on net income.
As a general principle, external borrowings are repaid when due. The only interest rate risk related to these borrowings is
therefore associated with variable-interest borrowings.
Currency risk:
The primary financial instruments are chiefly held in the functional currency.
Exchange rate differences caused by the conversion of financial statements into the Group currency are not taken into
consideration.
If the value of the euro against major currencies (USD, GBP and JPY) had been 10 percent higher as at December 31, 2014,
the profit before income taxes would have been €7.5 million (previous year: €5.7 million) lower. If the value of the euro
against major currencies (USD, GBP and JPY) had been 10 percent lower as at December 31, 2014, the profit before
income taxes would have been €9.2 million (previous year: €6.9 million) higher.
Liquidity risk:
Risks connected with cash flow fluctuations are identified at an early stage by the cash flow planning system already
in place. As a result of Freudenberg‘s good rating (Baa1) and the credit lines granted by banks on a binding basis,
Freudenberg can access ample sources of funds at all times.
Credit risk:
Specific provisions and individualized generic provisions are recognized to take account of identifiable risks not covered
by credit insurance. Otherwise, the book value represents the maximum credit risk.
Freudenberg SE only concludes derivative financial instruments with national and international banks of at least investment
grade rating. Credit risks are largely eliminated by distributing hedges between several banks and a policy of applying
caps to individual banks.
142
NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(14) Sales
Sales include revenue from the sale of goods amounting to €5,783.0 million (previous year: €5,461.8 million), services in
the amount of €137.8 million (previous year: €129.7 million) and licenses in the amount of €14.9 million (previous year:
€13.2 million). Other sales totaled €46.6 million (previous year: €41.4 million).
(15) Cost of sales
Cost of sales indicates the cost of goods and services sold. Apart from individual directly attributable costs, such as
personnel expenses and material expenses, overheads, including depreciation/amortization, are also shown under cost
of sales.
(16) Research and development expenses
Apart from personnel and material expenses, research and development expenses chiefly include the cost of licenses and
patents occurring in the course of development projects.
(17) Other income
Other income mainly includes income from disposals of financial assets, income from secondary business and income
from disposals of non-current assets. Following the offsetting of exchange rate losses, the net exchange rate gain was
€8.4 million (previous year: net exchange rate loss of €17.0 million).
(18) Other expenses
Among other items, other expenses include losses on disposals of non-current assets and financial assets. Exchange rate
losses were set off against exchange rate gains.
(19) Interest and similar expenses
Interest expenses include interest on shareholder’s loans in the amount of €15.6 million (previous year: €15.7 million) and
interest payable to the Partners of Freudenberg & Co. KG in the amount of €11.6 million (previous year: €10.1 million).
143
(20) Income taxes
This item shows German corporation tax (plus solidarity surcharge) and municipal trade taxes and similar taxes on income
payable in other countries.
The figure also includes deferred taxes on temporary differences between the tax balance sheets and commercial
balance sheets of individual companies, on adjustments to uniform measurement within the Freudenberg Group and on
consolidation transactions.
Deferred taxes are calculated at the tax rates applicable in the countries concerned.
Income taxes break down as follows (expense (-)/income (+)):
[€ million]
Current taxes related to the reporting period
Current taxes related to prior periods
Deferred taxes
2013
2014
-114.3
1.9
17.9
-94.5
-171.5
-1.9
26.1
-147.3
The amount of deferred tax income related to changes in tax rates was €1.1 million (previous year: €0.7 million).
In the reporting year, deferred taxes related to transactions recognized directly under equity resulted in an increase in
equity of €32.4 million (previous year: reduction in equity of €5.2 million).
As of December 31, 2014, tax losses carried forward amounted to €278.3 million (previous year: €323.9 million). Deferred tax assets were recognized in respect of tax losses carried forward totaling €25.0 million (previous year:
€27.8 million). Deferred tax assets were not recognized in respect of tax losses carried forward with a total amount of
€253.3 million (previous year: €296.1 million) as it is not expected that these losses will be usable.
In the reporting year, tax losses carried forward totaling €8.2 million (previous year: €6.9 million) for which no deferred
tax assets had been recognized were used.
144
Deferred tax
assets
Dec. 31, 2013
Deferred tax
liabilities
Dec. 31, 2013
Deferred tax
assets
Dec. 31, 2014
Deferred tax
liabilities
Dec. 31, 2014
Deferred taxes concern temporary differences and tax losses carried forward with the following amounts:
6.4
6.2
1.4
26.4
7.0
2.6
61.6
36.3
13.1
0.4
6.6
168.0
84.2
103.2
0.0
0.7
8.9
1.2
0.1
0.9
1.1
5.8
0.0
206.1
7.3
7.1
1.1
30.0
8.0
4.4
97.1
49.9
18.3
0.1
6.2
229.5
93.4
100.1
0.9
1.1
6.4
1.3
0.0
2.8
7.5
9.4
0.0
222.9
Offsetting
-85.1
-85.1
-109.1
-109.1
Recognized in statement of financial position
82.9
121.0
120.4
113.8
[€ million]
Intangible assets
Tangible assets
Financial assets
Inventories
Receivables
Other assets
Other provisions
Liabilities
Other liabilities
Tax losses carried forward
No deferred tax items were set up on temporary differences arising from shareholdings totaling €35.5 million (previous
year: €29.6 million) as short-term dividend payments are not expected.
Reconciliation of expected income tax with actual income tax expense
Freudenberg SE and its German subsidiaries are subject to corporation tax (plus solidarity surcharge) and the municipal
trade tax on income. Income realized in other countries is taxed at the rates applicable in the countries concerned. The
tax rate of 29 percent (previous year: 29 percent) used for calculating the expected tax expense is based on the structure
of the Freudenberg Group relevant for taxation. It is calculated as the weighted average of the tax rates for the regions in
which the Freudenberg Group realized its main income.
145
2013
2014
493.3
-143.1
625.1
-181.3
0.7
0.1
0.3
0.1
66.2
-17.8
1.9
58.2
-22.4
-1.9
-4.3
-5.4
1.3
0.5
-94.5
19.2
2.0
3.1
-147.3
23.6
[€ million]
2013
2014
Profit
Loss
49.9
-3.5
46.4
53.7
-3.3
50.4
[€ million]
Expected income tax expense (-)/income (+)
Different tax rates:
In Germany
In other countries
Tax portion of:
Non-taxable income
Non-deductible expenses
Current taxes related to prior periods
Tax portion of new tax losses carried forward for
which no deferred tax assets were recognized
Tax portion of tax losses carried forward and used for
which no deferred tax assets were recognized
Other taxation effects
Actual income tax expense
Effective tax rate (percent)
(21) Profit or loss attributable to non-controlling interests
(22) Notes to the Consolidated Statement of Cash Flows
Freudenberg recognizes checks, cash in hand, cash at bank and short-term securities with an original term of up to three months as
cash and cash equivalents. Cash and cash equivalents include funds with an amount of €2.6 million (previous year: €3.4 million)
subject to restrictions on use. The funds subject to restrictions on use by Freudenberg largely concern cash and cash equivalents held
by Group companies which can only be used with restrictions as a result of exchange controls.
The cash flow from operating activities takes into account payments for taxes amounting to €141.6 million (previous year:
€138.9 million), dividends received from joint ventures totaling €22.4 million (previous year: €5.2 million) and dividends received
from associated companies totaling €14.4 million (previous year: €11.1 million) – as well as interest paid of €40.2 million
(previous year: €46.4 million) and interest received of €11.0 million (previous year: €8.8 million).
Payments to shareholders and non-controlling interests include dividends paid to the shareholder, to the Partners of
Freudenberg & Co. KG and to holders of non-controlling interests in Group companies.
146
FURTHER NOTES
Application of Sec. 264 (3), HGB (Handelsgesetzbuch, “German Commercial Code“) and Sec. 264b, HGB
The following German companies of the Freudenberg Group took advantage of the exemption regulations of
Sec. 264 (3), HGB, Sec. 264b, HGB:
Burgmann International GmbH, Wolfratshausen
Freudenberg IT Solution Consulting SE & Co. KG, Weinheim
Capol GmbH, Elmshorn
Freudenberg Mechatronics GmbH & Co. KG, Weinheim
Chem-Trend (Deutschland) GmbH, Maisach/Gernlinden
Freudenberg New Technologies SE & Co. KG, Weinheim
Corteco GmbH, Weinheim
Freudenberg Oil & Gas GmbH, Weinheim
CT Beteiligungs-GmbH, Munich
Freudenberg Politex GmbH, Weinheim
DS Beteiligungs-GmbH, Weinheim
Freudenberg Process Seals GmbH & Co. KG, Weinheim
DS Holding-GmbH, Weinheim
Freudenberg Schwab GmbH, Velten
EagleBurgmann Espey GmbH, Moers
Freudenberg Schwab Vibration Control GmbH & Co. KG, Velten
EagleBurgmann Germany GmbH & Co. KG, Wolfratshausen
Freudenberg Sealing Technologies GmbH & Co. KG, Weinheim
Externa Handels- und Beteiligungsgesellschaft mit beschränkter
Freudenberg Venture Capital GmbH, Weinheim
Haftung, Weinheim
Freudenberg Vliesstoffe SE & Co. KG, Weinheim
FCS-Munich GmbH, Weinheim
FV Beteiligungs-GmbH, Weinheim
FFT Beteiligungs-GmbH, Weinheim
FV Logistik SE & Co. KG, Weinheim
FHP Export GmbH, Weinheim
FV Service SE & Co. KG, Kaiserslautern
FHP Holding GmbH, Weinheim
FV Verwaltungs-SE & Co. KG, Weinheim
FIT Service GmbH, Weinheim
Helix Medical Europe GmbH, Kaiserslautern
Freudenberg Chemical Specialities SE & Co. KG, Munich
Integral Accumulator GmbH & Co. KG, Weinheim
Freudenberg Dichtungs- und Schwingungstechnik GmbH, Berlin
Klüber Lubrication Deutschland SE & Co. KG, Munich
Freudenberg DS Tooling Center GmbH & Co. KG, Weinheim
Klüber Lubrication GmbH, Weinheim
Freudenberg FCCT SE & Co. KG, Weinheim
Klüber Lubrication München SE & Co. KG, Munich
Freudenberg Filtration Technologies SE & Co. KG, Weinheim
Lederer GmbH, Öhringen
Freudenberg Gygli GmbH, Weinheim
Merkel Freudenberg Fluidtechnic GmbH, Hamburg
Freudenberg Handels- und Beteiligungs-GmbH, Weinheim
OKS Spezialschmierstoffe GmbH, Maisach/Gernlinden
Freudenberg Haushaltsprodukte Augsburg GmbH, Augsburg
RE Coatings Holding GmbH, Elmshorn
Freudenberg Home and Cleaning Solutions GmbH, Weinheim
Seal Trade Eurasburg GmbH, Eurasburg
Freudenberg Immobilien Management GmbH, Weinheim
SurTec Deutschland GmbH, Zwingenberg
Freudenberg Interlining SE & Co. KG, Weinheim
SurTec International GmbH, Bensheim
Freudenberg IT Information Services SE & Co. KG, Weinheim
Vileda Gesellschaft mit beschränkter Haftung, Weinheim
Freudenberg IT SE & Co. KG, Weinheim
147
Material expenses
[€ million]
Raw materials, consumables and merchandise purchased
Services purchased
2013
2014
2,025.4
168.6
2,194.0
2,160.8
193.6
2,354.4
Workforce and personnel expenses
In the year under review, an average of 34,094 (previous year: 33,293) persons were employed in the following
functions:
2014
Production
Sales
Research and development
Administration
Germany Other countries
5,609
15,030
1,836
5,759
1,153
872
1,090
2,745
9,688
24,406
Total
20,639
7,595
2,025
3,835
34,094
Personnel expenses amounted to €1,811.8 million (previous year: €1,727.9 million).
Research and development
In the year under review, research and development activities amounting to €213.7 million (previous year:
€193.0 million) were performed. Of this amount, €11.8 million (previous year: €10.9 million) were charged to third
parties. The figure includes government grants for research and development projects totaling €2.3 million
(previous year: €3.7 million).
148
Related party disclosure
Relations with the parent company Freudenberg & Co. KG, joint ventures, associated companies and other related parties
within the scope of normal business activities were as follows:
Residual term
more than
1 year
Dec. 31
Residual term
up to 1 year
Residual term
more than
1 year
Dec. 31
Parent company
Joint ventures
Associated companies
Other related parties
Residual term
up to 1 year
2013
[€ million]
Payables
Sales
Receivables
4.5
68.0
19.7
3.6
95.8
1.2
29.8
4.4
1.8
37.2
0.0
0.0
0.0
0.0
0.0
1.2
29.8
4.4
1.8
37.2
386.1
8.5
11.8
26.5
432.9
300.0
0.0
0.0
0.0
300.0
686.1
8.5
11.8
26.5
732.9
Residual term
more than
1 year
Dec. 31
Residual term
up to 1 year
Residual term
more than
1 year
Dec. 31
Parent company
Joint ventures
Associated companies
Other related parties
Residual term
up to 1 year
2014
[€ million]
Payables
Sales
Receivables
5.6
68.3
21.2
4.1
99.2
1.3
38.5
4.7
2.6
47.1
0.0
0.0
0.0
0.0
0.0
1.3
38.5
4.7
2.6
47.1
416.5
4.5
15.9
28.9
465.8
300.0
0.0
0.0
0.0
300.0
716.5
4.5
15.9
28.9
765.8
The total remuneration of members of the Board of Management amounted to €9.7 million (previous year: €7.7 million).
The total remuneration of former members of the Board of Management was €2.6 million (previous year: €8.5 million).
An amount of €42.7 million (previous year: €25.6 million) was assigned to provisions for pension obligations to former
members of the Board of Management.
The members of the Supervisory Board and Board of Management of Freudenberg SE are listed under
“Company Boards“.
149
Fees of the Auditor
The auditor, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, performed the following services in the 2014 financial
year:
[€ million]
Auditing services
Tax advisory services
Other services
Fees of the auditor
2014
1.6
0.2
0.4
2.2
Major events after the date of the statement of financial position
Up to March 26, 2015 (the date when the annual report was approved for publication by the Supervisory Board), there
were no events of major significance for the net assets, financial position and results of operations of the Freudenberg
Group.
Freudenberg SE
The Board of Management
150
Shareholdings
SHAREHOLDINGS OF THE FREUDENBERG GROUp
AS AT DECEMBER 31, 2014
No.
Company
Country
Share of capital
[%]
Freudenberg SE, Weinheim
Germany
–
I. Affiliated companies
Production companies, Germany
1 Capol GmbH, Elmshorn
2 Chem-Trend (Deutschland) GmbH, Maisach/Gernlinden
3 EagleBurgmann Espey GmbH, Moers
4 EagleBurgmann Germany GmbH & Co. KG, Wolfratshausen
5 Freudenberg DS Tooling Center GmbH & Co. KG, Weinheim
6 Freudenberg Filtration Technologies SE & Co. KG, Weinheim
7 Freudenberg Haushaltsprodukte Augsburg GmbH, Augsburg
8 Freudenberg Interlining SE & Co. KG, Weinheim
9 Freudenberg Schwab Vibration Control GmbH & Co. KG, Velten
10 Freudenberg Sealing Technologies GmbH & Co. KG, Weinheim
11 Freudenberg Vliesstoffe SE & Co. KG, Weinheim
12 Helix Medical Europe GmbH, Kaiserslautern
13 Integral Accumulator GmbH & Co. KG, Weinheim
14 Klüber Lubrication München SE & Co. KG, Munich
15 Lederer GmbH, Öhringen
16 Merkel Freudenberg Fluidtechnic GmbH, Hamburg
17 OKS Spezialschmierstoffe GmbH, Maisach/Gernlinden
18 PTFE Compounds Germany GmbH, Biere
19
SurTec Deutschland GmbH, Zwingenberg
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
100.00
100.00
75.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
90.00
100.00
Production companies, other countries
20 Freudenberg S.A. Telas sin Tejer, Villa Zagala
21 Klüber Lubrication Argentina S.A., Buenos Aires
22 EagleBurgmann Australasia Pty. Ltd., Ingleburn
23 Freudenberg Filtration Technologies (Aust) Pty. Ltd., Braeside
24 Klüber Lubrication Benelux S.A./N.V., Dottignies
25 Chem-Trend Industria e Comercio de Produtos Quimicos Ltda., Valinhos
26 EagleBurgmann do Brasil Vedacoes Ltda., Campinas, São Paulo
27 Freudenberg Nao-Tecidos Ltda., Jacareí
28 Freudenberg-NOK-Componentes Brasil Ltda., São Paulo
29 Klüber Lubrication Lubrificantes Especiais Ltda., Barueri
30 SurTec do Brasil Ltda., São Bernardo do Campo, São Paulo
31 Burgmann Dalian Co. Ltd., Dalian
32 Burgmann Shanghai Ltd., Shanghai
33 Changchun Integral Accumulator Co., Ltd., Changchun
34 Chem-Trend Chemicals (Shanghai) Co., Ltd., Qingpu
35 Freudenberg & Vilene Filter (Changchun) Co., Ltd., Changchun
Argentina
Argentina
Australia
Australia
Belgium
Brazil
Brazil
Brazil
Brazil
Brazil
Brazil
China
China
China
China
China
100.00
100.00
25.00
100.00
100.00
100.00
75.00
100.00
75.00
100.00
100.00
40.00
40.00
75.00
100.00
37.50
151
No.
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
152
Company
Country
Freudenberg & Vilene Interlinings (Nantong) Co. Ltd., Nantong
Freudenberg & Vilene Nonwovens (Suzhou) Co. Ltd., Suzhou
Freudenberg Vilene Filter (Chengdu) Co. Ltd., Chengdu
Klüber Lubrication Industries (Shanghai) Co., Ltd., Qingpu
Ningbo Asia Shine Co Ltd, Zhejiang
Ningbo E&J Brushes Co Ltd, Zhejiang
SurTec Metal Surface Treatment Technology Co. Ltd., Hangzhou
Helix Medical LATR srl., San José
EagleBurgmann KE A/S, Vejen
OÜ Merinvest, Kuressaare-Mullutu
Freudenberg Evolon S.A.S.U., Colmar
Freudenberg Joints Elastomères SAS, Langres
Freudenberg Joints Plats SAS, Chamborêt
Freudenberg Politex S.A., Colmar
Freudenberg S.A.S., Langres
Freudenberg Nonwovens LP, Littleborough
Freudenberg Oil & Gas Technologies Ltd., Port Talbot
Freudenberg Technical Products LP, North Shields
Scott-Matrix Limited, Newcastle Upon Tyne
APEC (Asia) Limited, Hong Kong
EagleBurgmann India Pvt. Ltd., Pune
EagleBurgmann KE Pvt. Ltd., Chennai
EagleBurgmann Mascot India Private Limited, Mira Road East, Thane
Freudenberg Filtration Technologies India Private Limited, Pune
Freudenberg Gala Household Product Pvt. Ltd., Mumbai
Freudenberg Nonwovens India Pvt. Ltd., Chennai
Klüber Lubrication India Pvt. Ltd., Bangalore
SurTec Chemicals India Pvt. Ltd., Pune
Corcos Industriale S.a.s. di Externa Italia S.r.l., Pinerolo
EagleBurgmann BT S.p.A., Arcugnano
FHP di R. Freudenberg S.A.S., Milan
Freudenberg Tecnologie di Filtrazione S.a.s. di Externa Holding S.r.l., Milan
Marelli e Berta S.A.S. di Externa Holding s.r.l., Sant’ Omero
Politex S.a.s. di Freudenberg Politex s.r.l., Novedrate
Trasfotex s.r.l., Quaregna
EagleBurgmann Japan Co., Ltd., Tokyo
Freudenberg Vileda Jordan Ltd., Amman
Freudenberg Oil & Gas Canada Inc., Nisku
Freudenberg-NOK Inc., Tillsonburg
EagleBurgmann Manufacturing Malaysia SDN. BHD., Petaling Jaya
Freudenberg Oil & Gas Technologies Sdn. Bhd., Kuala Lumpur
China
China
China
China
China
China
China
Costa Rica
Denmark
Estonia
France
France
France
France
France
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Hong Kong
India
India
India
India
India
India
India
India
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Japan
Jordan
Canada
Canada
Malaysia
Malaysia
Share of capital
[%]
50.00
50.00
50.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
50.00
75.00
33.99
100.00
60.00
100.00
90.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
25.00
51.00
100.00
75.00
25.00
100.00
Shareholdings
No.
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
Company
Country
EagleBurgmann Mexico S.A. de C.V., Cuautitlán
EagleBurgmann Production Center S.A. de C.V., Santiago de Querétaro
Freudenberg Telas sin Tejer S.A. de C.V., León
Freudenberg-NOK de Mexico S.A. de C.V., Cuautla
Freudenberg-NOK de Queretaro, S.A. de C.V., Querétaro
Klüber Lubricacion Mexicana S.A. de C.V., Querétaro
Freudenberg Household Products B.V., Arnhem
Freudenberg Oil & Gas Technologies AS, Drammen
EagleBurgmann Production Center Judenburg GmbH, Judenburg
Freudenberg Spezialdichtungsprodukte Austria GmbH & Co. KG, Kufstein
Klüber Lubrication Austria Ges.m.b.H., Salzburg
Freudenberg Politex OOO, Nizhniy Novgorod
Freudenberg Household Products A.B., Norrköping
SurTec Cacak d.o.o., Čačak
Freudenberg Oil & Gas Pte. Ltd., Singapore
Freudenberg Filtration Technologies Slovensko, s.r.o., Potvorice
Freudenberg Espana S.A., Telas sin Tejer, S.en C., Barcelona
Freudenberg Iberica S.A., S.en C., Parets del Vallès
Klüber Lubrication GmbH Ibérica S.en C., Barcelona
EagleBurgmann Seals S.A. (Pty) Ltd., Edenvale
Freudenberg Nonwovens (Pty.) Ltd., Cape Town
SurTec South Africa Pty. Ltd., Pretoria
Chem-Trend Korea Ltd., Anseong-si
Korea Filtration Technologies Co., Ltd., Seoul
EagleBurgmann Taiwan Co., Ltd., Yenchao
Freudenberg & Vilene Nonwovens (Taiwan) Co. Ltd., Yangmei, Taoyuan
Freudenberg Far Eastern Spunweb Comp. Ltd., Taoyuan, Taoyuan
EagleBurgmann (Thailand) Co., Ltd., Rayong
Accu-Tech s.r.o., Chrastava
ALUCON s.r.o., Lázně Bělohrad
EagleBurgmann Bredan s.r.o., Jílové u Prahy
Těsnění a pružné elementy, k.s., Opatovice nad Labem
Freudenberg Coskunöz Kalip Sanayi ve Ticaret A.S., Bursa
Freudenberg Sealing Technologies Sanayi ve Ticaret A.S., Bursa
Klüber Lubrication Yaglama Ürünleri Sanayi ve Ticaret A.S., Istanbul
Freudenberg Simmerringe Kft., Kecskemét
Freudenberg Tömítés Ipari Kft., Lajosmizse
Chem-Trend Limited Partnership, Howell
Dichtomatik Americas, LP, Shakopee
Freudenberg Filtration Technologies LP, Hopkinsville
Freudenberg Household Products LP, Aurora
Mexico
Mexico
Mexico
Mexico
Mexico
Mexico
The Netherlands
Norway
Austria
Austria
Austria
Russia
Sweden
Serbia
Singapore
Slovakia
Spain
Spain
Spain
South Africa
South Africa
South Africa
South Korea
South Korea
Taiwan
Taiwan
Taiwan
Thailand
Czech Republic
Czech Republic
Czech Republic
Czech Republic
Turkey
Turkey
Turkey
Hungary
Hungary
USA
USA
USA
USA
Share of capital
[%]
75.00
75.00
100.00
75.00
75.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
90.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
50.00
25.00
50.00
60.18
25.00
36.75
100.00
75.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
153
No.
Company
Country
Freudenberg Oil & Gas, LLC, Houston
Freudenberg Spunweb Company LP, Durham
Freudenberg Texbond L.P., Macon
Freudenberg-NOK General Partnership, Plymouth
Helix Medical, LLC, Carpinteria
International Seal Company, Inc., Santa Ana
KL Texas L.P. dba SUMMIT INDUSTRIAL PRODUCTS, Tyler
Klüber Lubrication North America LP, Londonderry
Lakes Region Manufacturing, L.L.C., Belmont
MedVenture Technology Corporation, Jeffersonville
SurTec, Inc., Middleburg Heights
Tobul Accumulator Incorporated, Bamberg
Vector Group Inc., Houston
Freudenberg Oil and Gas FZE, Dubai
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
United Arab
Emirates
100.00
100.00
100.00
75.00
100.00
75.00
100.00
100.00
75.00
100.00
100.00
75.00
100.00
100.00
Sales companies, Germany
132 Corteco GmbH, Weinheim
133 Dichtomatik Vertriebsgesellschaft für technische Dichtungen mbH, Hamburg
134 FHP Export GmbH, Weinheim
135 Freudenberg Gygli GmbH, Weinheim
136 Freudenberg Process Seals GmbH & Co. KG, Weinheim
137 Hänsel Textil Interlining GmbH, Iserlohn
138 Klüber Lubrication Deutschland SE & Co. KG, Munich
139 Purtex GmbH, Weinheim
140 Seal Trade Eurasburg GmbH, Eurasburg
141 Vileda Gesellschaft mit beschränkter Haftung, Weinheim
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
Sales companies, other countries
142 Chem-Trend Australia Pty Ltd, Victoria
143 Freudenberg Household Products Pty. Ltd., Melbourne
144 Freudenberg Pty. Ltd., Thomastown
145 Klüber Lubrication Australia Pty. Ltd., Melbourne
146 EagleBurgmann Belgium B.V.B.A., St.-Job-in't-Goor
147 FHP Vileda S.C.S., Verviers
148 Klüber Lubrication Belgium Netherlands S.A., Dottignies
149 Vector Tecnologia do Brasil Ltda., Rio de Janeiro
150 Hänsel Textil Bulgaria ood, Rousse
151 Freudenberg Productos del Hogar Ltda., Santiago de Chile
152 Klüber Lubrication Chile Ltda., Santiago de Chile
153 Chem-Trend (Shanghai) Trading Co. Ltd., Shanghai
Australia
Australia
Australia
Australia
Belgium
Belgium
Belgium
Brazil
Bulgaria
Chile
Chile
China
100.00
100.00
100.00
100.00
75.00
100.00
100.00
99.90
100.00
100.00
100.00
100.00
118
119
120
121
122
123
124
125
126
127
128
129
130
131
154
Share of capital
[%]
Shareholdings
No.
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
Company
Country
Dichtomatik (China) Co., Ltd., Shanghai
EagleBurgmann Technology (Shanghai) Co., Ltd., Shanghai
Freudenberg & Vilene International (Shanghai) Trading Co., Ltd., Shanghai
Freudenberg Household Products (Suzhou) Co., Ltd., Suzhou
Freudenberg Politex Ltd., Shanghai
Freudenberg Spunweb (Shanghai) Trading Co., Ltd., Shanghai
Jump International Trading (Shanghai) Co Ltd, Shanghai
Klüber Lubrication (Shanghai) Co., Ltd., Shanghai
SurTec Chemical and Engineering (Hangzhou) Co. Ltd., Hangzhou
Klüber Lubrication Nordic A/S, Skovlunde
SurTec Scandinavia ApS, Fredericia
Freudenberg Filtration Technologies Finland Oy, Naantali
Freudenberg Household Products Oy Ab, Helsinki
Freudenberg Simrit Oy, Vantaa
KE-Burgmann Finland Oy, Vantaa
Chem-Trend France S.A.S.U., Entzheim
Corteco SAS, Nantiat - La Couture
Dichtomatik S.A.S, Mâcon Loché
EagleBurgmann S.A.S. (France), Sartrouville
FHP Vileda S.A., Asnières Sur Seine
Freudenberg Filtration Technologies SAS, Les Ulis - Courtaboeuf
Klüber Lubrication France S.A.S., Valence
SurTec France S.A.S., Cugnaux
FHP Hellas S.A., Kifisia-Athens
Aquabio Ltd., Worcester
Auto Suppliers Limited, Kidderminster
Capol (U.K.) Limited, Ness, Cheshire
Chem-Trend (UK) LP, Huddersfield
Corteco Ltd., Lutterworth
Dichtomatik Ltd., Derby
EagleBurgmann Industries UK LP, Warwick
Freudenberg Filtration Technologies UK Limited, Crewe
Freudenberg Household Products LP, Rochdale
Freudenberg Oil & Gas UK Ltd., Aberdeen
KE-Burgmann UK Ltd., Congleton
Klüber Lubrication Great Britain Ltd., Halifax
SurTec Chemicals UK Ltd., i.L., Birmingham
VC UK LP, i.L., New York
Freudenberg Textile Technologies, S.A., Guatemala City
E&J (HK) Co Ltd, Hong Kong
Freudenberg & Vilene Int. Ltd., Hong Kong
China
China
China
China
China
China
China
China
China
Denmark
Denmark
Finland
Finland
Finland
Finland
France
France
France
France
France
France
France
France
Greece
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Guatemala
Hong Kong
Hong Kong
Share of capital
[%]
100.00
50.00
50.00
100.00
100.00
60.18
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
66.00
75.00
100.00
100.00
100.00
75.00
100.00
51.00
100.00
100.00
100.00
50.00
155
No.
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
156
Company
Country
Freudenberg Household Products Ltd., Hong Kong
Jump (Asia) Distributors Ltd, Hong Kong
Klüber Lubrication China Ltd., Hong Kong
XETEX Trading Limited, Hong Kong
Chem-Trend Chemicals Co. Pvt. Ltd., Bangalore
PT EagleBurgmann Indonesia, Bekasi, West Java Province
PT. Jump Distributors Indonesia, Jakarta
Chem-Trend Italy del Dr. Gian Franco Colori S.a.s., Milan
Corteco S.r.l. (a socio unico), Pinerolo
Dichtomatik S.a.s. di Externa Italia S.r.l., Genoa-Voltri
EagleBurgmann Italia S.r.l., Osnago
Freudenberg S.p.A., Milan
Hänsel Textil Italia Srl, Milan
Klüber Lubrication Italia S.a.s. di G. Colori, Milan
Marelli & Berta Interfodere S.a.s. di Externa Holding S.r.l., Milan
Chemlease Japan K.K., Kobe
Freudenberg Spunweb Japan Company, Ltd., Osaka
SurTec MMC Japan KK, Tokyo
Dichtomatik Canada, Inc., Markham
EagleBurgmann Canada Inc., Milton, Ontario
EagleBurgmann Nova Magnetics Ltd., Dartmouth
Freudenberg Household Products Inc., Laval
Freudenberg Nonwovens Inc., London, Ontario
TOO Freudenberg Oil & Gas, Atyrau
EagleBurgmann Colombia, S.A.S., Bogotá
Freudenberg Kucanski proizvodi d.o.o., Zagreb
SurTec d.o.o., Split
EagleBurgmann (Malaysia) SDN. BHD., Petaling Jaya
Freudenberg Household Products (Malaysia) Sdn Bhd, Puchong
Klüber Lubrication (Malaysia) Sdn. Bhd., Kuala Lumpur
Chem-Trend Comercial, S.A. de C.V., Querétaro
Dichtomatik de Mexico S.A. de C.V., Querétaro
Freudenberg Productos del Hogar, S.A. de C.V., Mexico City
Dichtomatik B.V., Zwolle
EagleBurgmann Netherlands B.V., Veenendaal
SurTec Benelux B.V., Reuver
EagleBurgmann Norway AS, Skedsmokorset
Freudenberg Household Products AS, Skedsmokorset
Vestpak AS, Sandnes
Dichtomatik Handelsgesellschaft mbH, Vienna
EagleBurgmann Austria GmbH, Salzburg
Hong Kong
Hong Kong
Hong Kong
Hong Kong
India
Indonesia
Indonesia
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Italy
Japan
Japan
Japan
Canada
Canada
Canada
Canada
Canada
Kazakhstan
Colombia
Croatia
Croatia
Malaysia
Malaysia
Malaysia
Mexico
Mexico
Mexico
The Netherlands
The Netherlands
The Netherlands
Norway
Norway
Norway
Austria
Austria
Share of capital
[%]
100.00
100.00
100.00
50.00
100.00
24.98
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
51.00
60.18
56.00
100.00
75.00
75.00
100.00
100.00
100.00
75.00
100.00
100.00
25.00
100.00
100.00
100.00
95.50
100.00
66.60
75.00
100.00
75.00
100.00
100.00
95.00
75.00
Shareholdings
No.
Company
Country
Share of capital
[%]
236
SurTec Produkte und Systeme für die Oberflächenbehandlung GesmbH,
Guntramsdorf
Austria
100.00
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
EagleBurgmann Philippines, Inc., Cavite
Chem-Trend Polska sp. z o.o. spólka komandytowa, Janikowo
EagleBurgmann Poland sp. z o.o., Warsaw
FHP Vileda Sp. z o.o., Warsaw
Freudenberg Politex Sp. z o.o., Lodz
Freudenberg Simrit Polska Sp. z o.o., Warsaw
Freudenberg Vilene Sp. z o.o., Lodz
Klüber Lubrication Polska Sp. z o.o., Poznan
SurTec Polska Sp. z o.o., Wroclaw
ST Ibérica Lda., Albergaria-a-velha
Freudenberg Household Products Vileda Societate in Comandita, Bucharest
Hänsel Textilrom srl, Bucharest
SurTec Romania s.r.l., Bra˛sov
EagleBurgmann OOO, Zavolzhie
Freudenberg Filtration Technologies OOO, Nizhniy Novgorod
Freudenberg Household Products Eastern Europe OOO, St. Petersburg
Freudenberg Vileda Eastern Europe OOO, Moscow
Klüber Lubrication OOO, Moscow
OOO Freudenberg Sealing Technologies, Moscow
OOO SurTec, Moscow
EagleBurgmann Saudi Arabia Ltd., Khobar
Dichtomatik A.B., Landskrona
EagleBurgmann Sweden AB, Norrköping
Freudenberg Sealing Technologies AB, Stockholm
EagleBurgmann (Switzerland) AG, Höri
Freudenberg Gygli AG, Zug
Freudenberg Schwab Vibration Control AG, Adliswil
Freudenberg Simrit AG, Zurich
Klüber Lubrication AG (Schweiz), Zurich
Freudenberg proizvodi za domacinstvo d.o.o., Belgrade
Chem-Trend Singapore Pte. Ltd., Singapore
EagleBurgmann KE Pte. Ltd., Singapore
EagleBurgmann Singapore Pte. Ltd., Singapore
Klüber Lubrication South East Asia Pte. Ltd., Singapore
SurTec SK s.r.o., Vráble
Freudenberg Gospodinjski Proizvodi d.o.o., Maribor
SurTec Adria d.o.o., Radovljica
EagleBurgmann Ibérica S.A., Madrid
Vileda Ibérica S.A., S.en C., Parets del Vallès
Philippines
Poland
Poland
Poland
Poland
Poland
Poland
Poland
Poland
Portugal
Romania
Romania
Romania
Russia
Russia
Russia
Russia
Russia
Russia
Russia
Saudi Arabia
Sweden
Sweden
Sweden
Switzerland
Switzerland
Switzerland
Switzerland
Switzerland
Serbia
Singapore
Singapore
Singapore
Singapore
Slovakia
Slovenia
Slovenia
Spain
Spain
22.58
100.00
75.00
100.00
100.00
95.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
70.00
100.00
100.00
100.00
100.00
51.00
85.00
75.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
25.00
100.00
100.00
100.00
100.00
75.00
100.00
157
No.
Company
Country
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
Freudenberg & Vilene International Lanka (Private) Limited, Colombo
Hänsel Textil Lanka PVT Ltd., Colombo
Freudenberg Filtration Technologies (Pty) Ltd., Cape Town
Klüber Lubrication (Pty.) Ltd., Randhart
EagleBurgmann Korea Co., Ltd., Gyeonggi-Do
Freudenberg Home and Cleaning Solutions Korea Ltd., Seoul
SurTec Korea Co., Ltd., GyeongNam
Freudenberg Household Products (Taiwan) Co., Ltd., Taipeh
Chem-Trend Trading (Thailand) Co. Ltd., Bangkok
Jump Distributors (Thailand) Co Ltd, Nonthaburi
Klüber Lubrication (Thailand) Co., Ltd., Bangkok
Lucky Gecko Co Ltd, Nonthaburi
EagleBurgmann Czech s.r.o., Prague
Freudenberg Potreby pro domácnost, k.s., Prague
Freudenberg Vilene s.r.o., Prostějov
Klüber Lubrication CZ, s.r.o., Brno
SurTec CR s.r.o., Vrané nad Vltavou
EagleBurgmann Endüstriyel Sizdirmazlik Sanayi ve Ticaret Ltd., Istanbul
Freudenberg Household Products Evici Kullanim Araclari Sanayi ve Ticaret A.S.,
Istanbul
Sri Lanka
Sri Lanka
South Africa
South Africa
South Korea
South Korea
South Korea
Taiwan
Thailand
Thailand
Thailand
Thailand
Czech Republic
Czech Republic
Czech Republic
Czech Republic
Czech Republic
Turkey
Turkey
50.00
100.00
100.00
100.00
25.00
80.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
75.00
100.00
295
296
297
298
299
300
301
302
303
304
Freudenberg Vilene Tela Sanayi ve Ticaret A.S., Istanbul
Dichtomatik Kft., Budapest
EagleBurgmann Hungaria Kft., Budapest
Freudenberg Háztartási Cikkek Kereskedelmi BT, Budapest
Capol LLC, Northbrook
EagleBurgmann Industries LP, Houston
EagleBurgmann KE, Inc., Hebron
Freudenberg Nonwovens Limited Partnership, Durham
EagleBurgmann Venezuela, C.A., Caracas
EagleBurgmann Middle East FZE, Dubai
Turkey
Hungary
Hungary
Hungary
USA
USA
USA
USA
Venezuela
United Arab
Emirates
100.00
80.00
75.00
100.00
100.00
75.00
75.00
100.00
41.25
60.00
305
306
307
Chem-Trend Vietnam Company Limited, Ho Chi Minh City
EagleBurgmann Vietnam Company Limited, Ho Chi Minh City
SurTec Viet Nam Co., Ltd., Ho Chi Minh City
Vietnam
Vietnam
Vietnam
100.00
25.00
100.00
Germany
Germany
Germany
Germany
Germany
100.00
75.00
100.00
100.00
100.00
Administration and other companies, Germany
308 Beteiligungsgesellschaft Carl Freudenberg mbH, Weinheim
309 Burgmann Industries Holding GmbH, Wolfratshausen
310 Burgmann International GmbH, Wolfratshausen
311 Carl Freudenberg KG, Weinheim
312 CT Beteiligungs-GmbH, Munich
158
Share of capital
[%]
Shareholdings
No.
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
Company
Country
DS Beteiligungs-GmbH, Weinheim
Germany
DS Holding-GmbH, Weinheim
Germany
DS Verwaltungs-GmbH, Weinheim
Germany
EagleBurgmann Germany Verwaltungs-GmbH, Wolfratshausen
Germany
Externa Handels- und Beteiligungsgesellschaft mit beschränkter Haftung, Weinheim Germany
FCS-Munich GmbH, Weinheim
Germany
FFT Beteiligungs-GmbH, Weinheim
Germany
FHP Holding GmbH, Weinheim
Germany
FIT Service GmbH, Weinheim
Germany
Freudenberg Chemical Specialities SE & Co. KG, Munich
Germany
Freudenberg Dichtungs- und Schwingungstechnik GmbH, Berlin
Germany
Freudenberg FCCT SE & Co. KG, Weinheim
Germany
Freudenberg Handels- und Beteiligungs-GmbH, Weinheim
Germany
Freudenberg Home and Cleaning Solutions GmbH, Weinheim
Germany
Freudenberg Immobilien Management GmbH, Weinheim
Germany
Freudenberg IT Information Services SE & Co. KG, Weinheim
Germany
Freudenberg IT SE & Co. KG, Weinheim
Germany
Freudenberg IT Solution Consulting SE & Co. KG, Weinheim
Germany
Freudenberg Mechatronics Beteiligungs-GmbH, Weinheim
Germany
Freudenberg Mechatronics GmbH & Co. KG, Weinheim
Germany
Freudenberg New Technologies SE & Co. KG, Weinheim
Germany
Freudenberg Oil & Gas GmbH, Weinheim
Germany
Freudenberg Politex GmbH, Weinheim
Germany
Freudenberg Schwab GmbH, Velten
Germany
Freudenberg Venture Capital GmbH, Weinheim
Germany
Freudenberg Verwaltungs- und Beteiligungs-GmbH, Weinheim
Germany
Freudenberg Wohnbauhilfe GmbH, Weinheim
Germany
FV Beteiligungs-GmbH, Weinheim
Germany
FV Logistik SE & Co. KG, Weinheim
Germany
FV Service SE & Co. KG, Kaiserslautern
Germany
FV Verwaltungs SE & Co. KG, Weinheim
Germany
Kaul GmbH, Elmshorn
Germany
Klüber Lubrication GmbH, Weinheim
Germany
RE Coatings Holding GmbH, Elmshorn
Germany
SurTec International GmbH, Bensheim
Germany
Administration and other companies, other countries
348 Freudenberg Produtos do Lar Ltda., São Paulo
349 Freudenberg Servicos Corporativos da America do Sul Ltda., São Paulo
350 Freudenberg IT (Suzhou) Co., Ltd., Suzhou
351 Freudenberg Management (Shanghai) Co. Ltd., Shanghai
Brazil
Brazil
China
China
Share of capital
[%]
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
159
No.
352
353
354
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
160
Company
Country
Freudenberg Real Estate (Yantai) Co. Ltd., Yantai
Chem-Trend A/S, Copenhagen
EBI Atlantic A/S, Vejen
EBI Middle-East A/S, Vejen
SPECI-TEX ApS, Vejen
Meri Varad Zwei OÜ, Kuressaare-Mullutu
Freudenberg Immobilier SAS, Chamborêt
Chem-Trend (UK) Ltd., Huddersfield
Chem-Trend China Investments Ltd., Huddersfield
EagleBurgmann Industries UK Ltd., Warwick
FCS Interim UK Ltd., Huddersfield
Filtamark Ltd., Crewe
Freudenberg Limited, Littleborough
Freudenberg Technical Products Ltd., North Shields
Freudenberg Vileda Ltd., Rochdale
VC UK Ltd., i.L., New York
Freudenberg Trading (Hongkong) Ltd., Hong Kong
Freudenberg Regional Corporate Center India Pvt. Ltd., Bangalore
Externa Holding S.r.l., Milan
Externa Italia S.r.l., Pinerolo
Freudenberg Italia S.a.s. di Freudenberg S.p.A., Milan
Freudenberg Politex S.r.l., Novedrate
Freudenberg-NOK St Malaysia Sdn. Bhd., Kuala Lumpur
Freudenberg IT, S.A. de C.V., Mexico City
Vector Technology Group AS, Drammen
Freudenberg Austria GmbH, Kufstein
Chem-Trend Polska Sp. z o.o., Kobylnica
China
Denmark
Denmark
Denmark
Denmark
Estonia
France
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Hong Kong
India
Italy
Italy
Italy
Italy
Malaysia
Mexico
Norway
Austria
Poland
Poland
Romania
Romania
Romania
Singapore
Singapore
Slovakia
Spain
Spain
Spain
Czech Republic
Hungary
Hungary
USA
USA
USA
FIM Polska Sp. z o.o., Środa Ślaska
Freudenberg Household Products SRL, Bucharest
Freudenberg Management Imobiliar SRL, Braşov
Freudenberg Nonwovens Romania S.R.L., Braşov
EBI Asia Pacific Pte. Ltd., Singapore
EBI Asia Pte. Ltd., Singapore
Freudenberg Immobilienmanagement Slovakia, s.r.o, Potvorice
Freudenberg Espana S.A., Barcelona
Freudenberg Iberica S.A., Barcelona
Vileda Ibérica S.A., Barcelona
TPE správni s.r.o., Opatovice nad Labem
Freudenberg IM Hungária Kft., Budapest
Freudenberg IT Hungary Kft., Budapest
Chem-Trend Holding LP, Wilmington
EagleBurgmann Industries Inc., Houston
FCS Holding Inc., Wilmington
Share of capital
[%]
100.00
100.00
75.00
60.00
75.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
25.00
50.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
Shareholdings
No.
395
396
397
398
399
400
401
402
403
404
405
Company
Country
Freudenberg Household Products Inc., Aurora
Freudenberg IT LP, Durham
Freudenberg North America Limited Partnership, Plymouth
Freudenberg Real Estate L.P., Wilmington
Freudenberg Texbond Inc., Delaware
Freudenberg U.S.A. Holdings, Inc., Manchester
Freudenberg-NOK Holdings, Inc., Manchester
Intpacor Inc., Manchester
Klüber Lubrication North America Inc., Londonderry
Pellon Corporation, Durham
Upper Bristol Ramp, LLC, Wilmington
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
II. Investments in joint ventures (consolidated by equity method)
Germany
406 enmech GmbH & Co. KG, Weinheim
407 Schneegans Freudenberg GmbH & Co. KG, Emmerich am Rhein
408 SF GmbH, Emmerich am Rhein
409 TrelleborgVibracoustic GmbH, Darmstadt1)
Other countries
410 Cambus Teoranta, Spiddal
411 VistaMed Ltd., Carrick-on-Shannon
412 Corfina s.r.l., Pinerolo
413 Schneegans Freudenberg Silicon Ges.m.b.H, Losenstein
414 NOK-Freudenberg Asia Holding Co. Pte. Ltd., Singapore2)
415 enmech Hungary Bt, Pécel
416 TETL Holdings, LLC, Dover
417 TTKKE Holdings LP, Dover
Share of capital
[%]
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
75.00
Germany
Germany
Germany
Germany
50.00
50.00
50.00
50.00
Ireland
Ireland
Italy
Austria
Singapore
Hungary
USA
USA
50.00
50.00
50.00
50.00
50.00
50.00
41.25
30.00
Argentina
Japan
Japan
Japan
Poland
South Korea
South Korea
Thailand
USA
24.00
33.40
25.10
49.00
35.00
48.00
50.00
50.00
37.50
III. Investments in associated companies (consolidated by equity method)
Germany
Other countries
418 Bicomfiber S.A., Buenos Aires
419 Japan Vilene Company Ltd., Tokyo
420 NOK Corporation, Tokyo
421 NOK Klüber Co., Ltd., Tokyo
422 ZET Gaskets Sp.z.o.o., Brzostek
423 Klüber Lubrication Korea Ltd., Seoul
424 Korea Vilene Co., Ltd., Pyeongtaek
425 Freudenberg & Vilene Filter (Thailand) Co. Ltd., Chonburi
426 Ishino Gasket North America L.L.C., Plymouth
161
No.
Company
Country
427
ISE Industrial Sealing Equipment JLT, Dubai
United Arab
Emirates
36.75
428
SurTec Middle East (L.L.C.), Sharjah
United Arab
Emirates
35.00
1)Consolidated financial statements including
Trelleborg Automotive do Brasil Industria e Comercio de Autopecas Ltda.,
São Paulo, Brazil
Vibracoustic do Brasil Indústria e Comércio de Artefatos de Borracha Ltda., Taubaté-SP., Brazil
Trelleborg Automotive Design (Shanghai) Co. Ltd., Shanghai, China
Vibracoustic (Shanghai) Sales and Trading Co., Ltd., Shanghai, China
Vibracoustic (Yantai) Co., Ltd., Yantai, China
Vibracoustic CV Air Springs (Yantai) Co., Ltd., Yantai, China
Wuxi Trelleborg Vibration Isolators Co. Ltd., Jiangsu, China
Zhangjiagang Trelleborg Kunhwa Automotive Components Co. Ltd.,
Zhangjiagang, China
Trelleborg Automotive Germany GmbH, Breuberg, Germany
TrelleborgVibracoustic Europe GmbH, Darmstadt, Germany
Vibracoustic Asia Holding GmbH, Weinheim, Germany
Vibracoustic CV Air Springs GmbH, Hamburg, Germany
Vibracoustic Germany Holding GmbH, Weinheim, Germany
Vibracoustic GmbH & Co. KG, Weinheim, Germany
Trelleborg Automotive France SA, Carquefou, France
Trelleborg Modyn SAS, Nantes, France
Trelleborg Hong Kong Holdings Ltd., Hong Kong, Hong Kong
Trelleborg Automotive India Pvt Ltd, New Delhi, India
TrelleborgVibracoustic (India) Pvt. Ltd., Mohali, India
Trelleborg Japan KK, Yokohama, Japan
Trelleborg Automotive Mexico SA de CV, Toluca, Mexico
Trelleborg Automotive Toluca SA de CV, Toluca, Mexico
Vibracoustic de Mexico S.A. de C.V., Lerma, Mexico
Vibracoustic Polska Sp. z o.o., Środa Ślaska, Poland
Trelleborg Automotive S.r.l., Dej, Romania
Trelleborg Automotive OOO, Zavolzhie, Russia
Trelleborg Automotive China Holding AB, Trelleborg, Sweden
Trelleborg Automotive Forsheda AB, Trelleborg, Sweden
Trelleborg Automotive Group AB, Trelleborg, Sweden
Trelleborg Wuxi Holding AB, Trelleborg, Sweden
Trelleborg Automotive Cascante SAU, Cascante, Spain
Trelleborg Automotive Spain SA, Martorell (Barcelona), Spain
Trelleborg Participaciones SL, Barcelona, Spain
TrelleborgVibracoustic-Ikhwezi Ltd., East London, South Africa
Trelleborg Kunhwa Co. Ltd., Gyeongsan City, South Korea
TrelleborgVibracoustic (Thailand) Ltd., Chonburi, Thailand
Vibracoustic CZ s.r.o., Melnik, Czech Republic
Beltan Vibracoustic Titresim Elemanlari Sanayi ve Ticaret A.S., Bursa, Turkey
Blacktech Otomotiv Sanayi ve Ticaret A.S., Bursa, Turkey
Trelleborg Cerkezköy Ithalat ve Ihracat Otomotiv Ticaret AS, Cerkezköy/
Tekirdag, Turkey
Trelleborg Otomotiv Sanayi Ve Ticaret AS, Cerkezköy, Turkey
Vibracoustic CV Air Springs Otomotiv Sanayi ve Ticaret A.S., Bursa, Turkey
Vibracoustic CV Air Springs Magyarország Kft., Nyíregyháza, Hungary
Trelleborg Automotive USA Inc., South Haven, USA
Vibracoustic CV Air Springs USA Inc., Wilmington, USA
Vibracoustic North America Holdings Inc., Plymouth, USA
Vibracoustic North America LP, Plymouth, USA
162
2)Consolidated
Share of capital
[%]
financial statements including
Changchun NOK-Freudenberg Oilseal Co., Ltd., Changchun, China
Corteco China Co. Ltd., Guangzhou, China
Merkel NOK-Freudenberg Co. Ltd., Taicang, China
NOK-Freudenberg Group Sales (China) Co., Ltd., Shanghai, China
NOK-Freudenberg Group Trading (China) Co., Ltd., Shanghai, China
Wuxi NOK-Freudenberg Oilseal Co., Ltd., Wuxi, China
NOK-Freudenberg Hong Kong Ltd., Kowloon, Hong Kong
Sigma Freudenberg NOK PVT. Ltd., New Delhi, India
Audit Opinion
Audit Opinion
We have audited the Consolidated Financial Statements prepared by the Freudenberg SE, Weinheim, comprising the
Consolidated Statement of Financial Position, the Consolidated Statement of Profit or Loss, the Consolidated Statement of
Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Cash Flows, the Consolidated Statement
of Changes in Equity and the Notes to the Consolidated Financial Statements, together with the Group Management
Report for the fiscal year from January 1 to December 31, 2014. The preparation of the Consolidated Financial Statements
and the Group Management Report in accordance with IFRSs as adopted by the EU, and the additional requirements of
German commercial law pursuant to Sec. 315a (1) HGB [“Handelsgesetzbuch”: “German Commercial Code”] are the
responsibility of the parent company’s management. Our responsibility is to express an opinion on the Consolidated
Financial Statements and on the Group Management Report based on our audit.
We conducted our audit of the Consolidated Financial Statements in accordance with Sec. 317 HGB and German
generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer
[Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that
misstatements materially affecting the presentation of the net assets, financial position and results of operations in the
Consolidated Financial Statements in accordance with the applicable financial reporting framework and in the Group
Management Report are detected with reasonable assurance. Knowledge of the business activities and the economic
and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting
the disclosures in the Consolidated Financial Statements and the Group Management Report are examined primarily on
a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities
included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation
principles used and significant estimates made by management, as well as evaluating the overall presentation of the
Consolidated Financial Statements and the Group Management Report. We believe that our audit provides a reasonable
basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the Consolidated Financial Statements comply with IFRSs as adopted
by the EU, the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB and give a true and
fair view of the net assets, financial position and results of operations of the Group in accordance with these requirements.
The Group Management Report is consistent with the Consolidated Financial Statements and as a whole provides a
suitable view of the Group’s position and suitably presents the opportunities and risks of future development.
Mannheim, March 26, 2015
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Prof. Dr. WollmertGrathwol
WirtschaftsprüferWirtschaftsprüfer
[German Public Auditor][German Public Auditor]
163
Editorial Information
Published by:
Freudenberg Group
69465 Weinheim, Germany
www.freudenberg.com
PROJECT TEAM:
Corporate Communications:
Cornelia Buchta-Noack
Andreas Baldauf
Stephan Hans
Corporate Controlling and Accounting:
Volker Christ
Ellen Fichtner
Tanja Heilmann
Anja Killian
Martina Lorenz
Suse Mannsperger
Bodo Peisch
Steve Scheffel
Florian Wätzig
Design:
m & s communication, Düsseldorf, Germany
PHOTOS:
Getty Images, Dublin, Ireland
Georg Kleinegees, Berlin, Germany
Masterfile, Düsseldorf, Germany
Panther Media, Munich, Germany
Andreas Pohlmann, Munich, Germany
Gerald Schilling, Ketsch, Germany
Marco Schilling, Weinheim, Germany
Shutterstock, New York, USA
PRODUCTION:
Frotscher Druck, Darmstadt, Germany
www.freudenberg.com

2014 ANNUAL REPORT FREUDENBERg gROUP

Transcription

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