Annual and Sustainability Report 2014

Transcription

Reportage
Annual and Sustainability
Report 2014
The Weleda Group and Weleda AG
2
Brief profile
Brief profile
Weleda is the world’s leading manufacturer of certified natural and organic cosmetics and anthroposophic pharmaceuticals. Its products provide people with healing impulses and convey well-being and
vitality. Its portfolio comprises more than 1,000 pharmaceuticals and a variety of extemporaneous
pharmaceutical preparations, as well as 120 natural and organic cosmetics. The Swiss stock corporation is headquartered in Arlesheim near Basel (Switzerland) and has a branch office in Schwäbisch
Gmünd (Germany). In addition, Weleda has 19 majority shareholdings in 17 countries and employs a
workforce of approximately 2,0001 people worldwide. The company is represented through its products in over 50 countries across all continents. Since it was founded in 1921, Weleda has placed great
importance on social, environmental and economic responsibility.
Group structure and shareholders
Around 40 per cent of the capital and approximately 80 per cent of the voting rights of Weleda AG
are held by two main shareholders: the General Anthroposophical Society (AAG, Dornach, Switzerland)
and Klinik Arlesheim (KA, Arlesheim, Switzerland), previously the Ita Wegman Klinik AG. The remaining
registered shares and non-voting shares are publicly floated. Only members of the AAG are entitled to
entry in the share register.
Capital structure of Weleda AG2
Nominal capital
in CHF
3,478,000
Nominal registered shares CHF 1,000
3,478
Nominal registered shares CHF 112.50
6,880
774,000
Nominal registered shares CHF 125
3,984
498,000
Nominal non-voting shares CHF 500
19,000
Total nominal capital
1
Number
9,500,000
14,250,000
Calculated on a full-time equivalent basis
2
The share capital is fully paid. As of December 31st 2014, there is neither authorised nor conditional share capital.
Every registered share has a single vote in the General Shareholders’ Meeting.
Front page: Dr Meike Wenk at her work station.
Contents
2 Brief profile
At a glance
4 The 2014 financial year
4 Value-added statement
6 Editorial letter from the Chairman of the Board of Directors
7 Report from the CEO
Organisation and management
8 Continuous improvement based on a stable structure
14
DR MEIKE WENK
11 Sustainability strategy
12 Goals and measures of Weleda’s sustainability strategy
24
Environment
15 For the future of our environment
18Water
19Energy
20Packaging
21Waste
22 Environmental sustainability tables
Social
25 Living up to values and shaping the future
28 Sandalwood raw materials project
29 Social sustainability tables
ANNETTE PIPERIDIS
30
FRANÇOISE KESSLER
34
Economy
31 Sustainable business
32 Value-added statement
33 Corporate governance
35 Weleda pharmaceuticals
39 Weleda natural and organic cosmetics
42 Our markets
47 Third-party turnover of national companies
49 Financial report
Annual Financial Report 2014
53 Weleda Group
73 Weleda AG
DR CHRISTIAN BIRRINGER
38
DR LUCIE BAUERSCHAPER
48
84 Certifications
85 GRI indicators index
86Addresses
87 Publication details
DR LEO ZÄNGERLE
52
PIERRE KAPPLER
3
4
At a glance
The 2014 financial year
Economy
2014
in 1,000 EUR
2014
in 1,000 CHF1
2013
in 1,000 EUR
2013
in 1,000 CHF 1
Change in %
2014/2013 based on
EUR values
+8.2
Weleda Group – key figures
Net sales
364,289
442,475
336,700
414,408
Net sales natural and organic cosmetics
254,022
308,542
236,327
290,870
+7.5
Net sales pharmaceuticals
110,267
133,933
100,373
123,538
+9.9
35,120
42,658
33,983
41,826
+3.3
Operating result (EBIT)
EBIT in % of turnover
Consolidated result for the year
9.6%
10.1%
9,762
11,857
4,672
5,750
+108.9
48,084
58,404
36,499
44,920
+31.7
Net debt2
9,070
10,905
49,026
60,081
-81.5
Investments in intangible assets and
property, plant and equipment
6,932
8,423
4,149
5,107
+67.1
Cash flow from operating activities
Full-time equivalents (FTE)
1,965
1,881
+4.5
Balance sheet total
265,168
318,825
237,077
290,580
+11.8
Shareholders’ equity
88,489
106,407
79,726
97,747
+11.0
8,818
1,403
+528.5
99,932
91,573
+9.1
Equity ratio
33.4%
33.6%
Weleda AG – key figures
Profit for the year
Dividend in % of nominal value
1
3
5.0%
5.0%3
At balance sheet date, average year-end or historical rates 2 Short- and long-term financial liabilities minus cash and securities
Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2015
Value-added statement 2014
Origin
Group performance (turnover, other income and interest income)
2014
in million
EUR
2013
in million
EUR
Change in %
2014/2013
371.9
343.9
+8.1
Payment in advance (cost of materials, changes in inventory, depreciation
and amortisation and other advance payments)
–212.0
–207.3
+2.3
Added value
159.9
136.6
+17.1
2014
in million
EUR
2013
in million
EUR
Change in %
2014/2013
Distribution
To employees (employee income, as well as social contributions and pension fund)
132.1
82.6%
116.9
85.6%
+13.0
12.6
7.9%
8.9
6.5%
+41.6
1.9
1.2%
1.7
1.3%
+11.8
To lenders (interest expense)
3.5
2.2%
4.4
3.2%
–20.5
To shareholders (dividend)
0.61
0.4%
0.6
0.4%
–1.6
To the company (reserves)
9.2
5.7%
4.1
3.0%
+124.4
159.9
100.0%
136.6
100.0%
+17.0
To public authorities (taxes)
To charitable organisations (donations), according to paragraph 2 (3) of the articles of incorporation
Added value
All information given at the prevailing rates at the time specified. Notes to the value-added statement: see page 32.
1
Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2015
At a glance
Environment
2014
Organic plant-based raw materials, in tonnes
2013
Change in %
2,353
1,995
+17.9
80,460
63,752
+26.2
106,240
104,582
+1.6
Social
2014
2013
Change in %
Headcount on balance sheet date, in number of people*
2,299
2,232
+3.0
714
694
+2.9
1,585
1,538
+3.1
Water consumption, in cubic metres
Energy consumption (direct and indirect), in gigajoules
Number of male employees*
Number of female employees*
* Including trainees, apprentices, marginally employed staff, volunteers
ECONOMY
81.5 %
reduction in net debt
Annual change in net debt since 2012
–81.5 %
2014
–41.4 %
2013
2012
–21.0 %
ENVIRONMENT
83 %
organic proportion of
plant-based raw materials
Plant-based raw materials from organic and biodynamic cultivation in tonnes since
January 1st 2012
83 %
2014
78 %
2013
77 %
2012
SOCIAL
69 %
of Weleda employees are women.
This figure applies to the Weleda Group and gives the proportion in the total number
of employees in number of people.
2014
Women 69 %
Men 31 %
2013
Women 69 %
Men 31 %
2012
Women 68 %
Men 32 %
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6
Editorial letter from the Chairman of the Board of Directors
Dear Reader,
On March 11th 2015, Dr Samir Kedwani passed away unexpectedly. His death has deeply
shocked all of us as Weleda employees. We owe him a great deal, and it is difficult to
imagine Weleda without him. This report is dedicated to him and the quality that was
always of such great importance to him. You can find his obituary on page 10.
Our commitment to quality is the reason why increasing numbers of customers are placing their trust
in us and remaining loyal to Weleda. What is so special about Weleda’s quality? We have selected seven
factors. Seven Weleda employees represent these seven factors.
Our understanding of formulations goes beyond purely the materials themselves. Meike
Wenk, Head of Active Substance Development, Natural and Organic Cosmetics, explains this using
the example of evening primrose. The robust, herbaceous flower is the lead plant in the new care
range: “Its flowers open when evening approaches. This is like the independence of women in their
mid-fifties.” (Page 14)
We attach the greatest importance to the purity of ingredients. Dr Lucie Bauerschaper, Head
of Quality Assurance, Natural and Organic Cosmetics, knows: “The efficacy of the raw material can,
however, only be guaranteed by their purity. Which is why we want to know their origin and have a
number of our own cultivation projects around the world.” (Page 38)
Biodynamic cultivation yields the best plants. “Biodynamic preparations improve the resilience of the plants and soil fertility – the healthier it is, the better the plants and, as a result, their
actives thrive”, according to Pierre Kappler, Head of Medicinal Plant Cultivation in Arlesheim and
Huningue. (Page 52)
Anyone using Weleda products already contributes to the sustainable and responsible use
of our resources. “We don’t want to subtly force anything on our customers. We respect them in all
aspects”, comments Françoise Kessler, Commercial Director at Weleda France. (Page 30)
“We compose the fragrances of our products ourselves, and only from high-quality, natural
essential oils. According to anthroposophical thinking, the fragrance of a plant is the expression of
its spiritual essence.” Dr Leo Zängerle knows what he is talking about. He has been with Weleda for
15 years and is Head of Weleda’s Fragrance Competence Centre in Arlesheim. (Page 48)
Fair trade is one of our values. “We can now prove this for almost all of our 650 raw materials”, says Annette Piperidis, International Strategic Sourcing Coordinator. (Page 24)
“We process our high-quality raw materials with the greatest care.” Dr Christian Birringer,
Head of Starting Substances Manufacture, refers to formulations that in some cases go back to
Rudolf Steiner. (Page 34)
Of course, there are also indirect factors that contribute to good quality, including the high
degree of commitment of employees, a positive company culture and a competent Executive Board.
The interplay of these factors has resulted in a commercial strength that enables us to continue to
work on quality. On behalf of the Board of Directors, I would like to take this opportunity to thank the
Executive Board and the Weleda employees for their commitment, and you as shareholders and holders of non-voting shares for your support.
Paul Mackay, Chairman of the Board of Directors of Weleda AG
Report from the CEO
Dear Sir/Madam,
When compiling this report, our thoughts were with our departed colleague and friend,
Dr Samir Kedwani. The success that we are able to report is to a substantial degree
also his success. His achievements are an obligation to us to handle the fruits of our
labour carefully and in a forward-looking manner.
Weleda reports solid growth as innovations pay off. This was the headline for our media release in
early 2015, as the Weleda Group posted an operating result (EBIT) of EUR 35.1 million for 2014. Turnover amounted to EUR 364.3 million (2013: EUR 336.7 million), representing an increase of EUR 27.6
million (8.2 per cent) year-on-year. Adjusted for changes in exchange rates, growth in turnover was
8.6 per cent.
Once again, both pharmaceuticals and natural and organic cosmetics contributed to this
growth: turnover in pharmaceuticals was up by around EUR 10 million (10 per cent), while that in na
tural and organic cosmetics increased by around EUR 18 million (8 per cent) compared to the previous
year. As in 2013, we were therefore able to exceed our targets.
We were also able to improve our result for the third year in a row. The growth in turnover and
our rigorous cost control contributed to this. The improved result is also expressed in our operating
cash flow. Together with our moderate investment activity, we were therefore able to reduce our net
debt by a further EUR 40 million in 2014. Weleda is thus improving its resilience in order to be able
to meet the future challenges in an intensively competitive market environment.
Increasing turnover, earning money, reducing debt – I like reporting these. However, this is
not the purpose of our business. I consider it to be a result of our work in many areas. While the economic pillar of sustainability was weaker until now compared to the environmental and social pillars,
we can say that we have now caught up in this respect and that the company stands on three equally
solid feet. You can read about this in our interview with CFO Michael Brenner on page 31.
This type of achievement is only possible if employees work enthusiastically, are involved
and have the opportunity to develop initiative and creativity. This is how I experience the collaboration throughout the company – and I would like to take this opportunity to express my sincere
thanks for this to all employees!
This year’s annual report explores the question what is so special about Weleda’s quality?
A lot of what we have initiated flows into improving quality. I include here the investment in the issues
of ”culture and identity” and ”management”, the development of a Weleda sustainability strategy
and the strengthening of innovation management. This also includes the focus of the company’s
entire organisational structure on the challenges of the digital age as well as the continuous renewal and improvement of the Weleda product portfolio to the benefit of our customers. I would
also like to mention the professionalisation of purchasing and the achievement of operational excellence. The annual report touches on all of these issues, which give an overview of the comprehensive
further development of Weleda in 2014.
Ralph Heinisch, CEO of Weleda AG
7
8
Continuous improvement based on stable structure
Following our focus in the two previous years on organisational changes, in 2014, we
increased our innovation activity and further enhanced productivity. Our ongoing
tasks include further developing the management structure and strengthening our
corporate identity.
Staff Functions and Services Unit (Ralph Heinisch, CEO)
CEO directly responsible for Culture and Identity
The Culture and Identity function has been overseen directly by
the CEO since January 2014. For Weleda, as an anthroposophically
inspired and value-oriented company, the Culture and Identity
function is of key importance as it provides positive impetus in
all activities and all areas of the company.
Weleda’s principles confirmed
Weleda is a company with specific ideals. These values – which are
Weleda’s principles – form the basis of our thinking and actions.
These principles were discussed in depth in the year under review,
and confirmed once again in the organisation with no changes. The
principles are based on our anthroposophic values, which at their
core are timeless and permanently valid.
New IT strategy requires organisational changes
The new IT strategy resulted in organisational changes. The former
Information Technology (IT) and Process Organisation Management areas are now Organisation and Information Management
(OIM). Project and process management, corporate architecture,
information technology and IT governance are managed under this
umbrella.
The renaming to OIM is intended to express that the strategy of the company’s entire organisational structure is taken into
account and also covers the challenges of the digital age as well
as the needs of stakeholders (employees, departments, areas,
suppliers, customers, etc.).
Finance and Services Unit (Michael Brenner, CFO)
New Treasury and Tax area established
Recent years have shown that management duties in the areas of
controlling, taxes and finance are constantly increasing and becoming ever more challenging. To meet these demands and better exploit potential, the former Finance and Controlling area was divided
into the two areas Accounting and Controlling as well as Treasury
The Board of Directors of Weleda AG (from left to right) :
Dr Harald Matthes, Dr Andreas Jäschke, Elfi Seiler, Dr Jürg Galliker and Paul Mackay.
and Tax, with effect from January 1st 2014. Responsibilities for taxes,
financing (Treasury), insurance management and internal control
system (ICS) have been combined under Treasury and Tax.
Purchasing project completed successfully
The project to optimise indirect purchasing in Germany and Switzer
land was completed successfully in December 2014. The main focus
was on a central purchasing structure and further professionalisation. More efficient processes and savings worth millions testify to
the project’s success.
Commercial Unit (Andreas Sommer, CCO)
Innovation management strengthened
The continuous renewal and improvement of the Weleda product
portfolio to the benefit of our customers are key to the company’s
success. Since the resumption of innovation activity, we have successfully launched numerous new products in a shorter time over
the past one and a half years.
The comprehensive Natural and Organic Cosmetics Innovation Programme 2018 places high demands on the entire company.
Ongoing work on the innovation process, improvement of cross-
functional collaboration and the further professionalisation of the
project organisation have proven successful in this regard.
Weleda Netherlands/Belgium (NL/BE) back on track
Weleda NL/BE faced a critical situation on the market in 2013. In
addition to his responsibility as Regional Director for North Ame
rica, Jasper van Brakel also took over management of Weleda NL/
BE temporarily at the time. Following a successful turnaround, the
subsidiary is back in a phase of growth and further improvement
in profit. We have introduced appropriate measures for 2015.
Operations Unit (Dr Samir Kedwani, COO, † March 11th 2015)
Production areas at the Arlesheim site combined
In order to further develop the Operations Unit, we placed the pharmaceuticals and natural and organic cosmetics production areas
The Executive Board of Weleda AG (from left to right):
Ralph Heinisch, Andreas Sommer, Dr Samir Kedwani († March 11th 2015) and Michael Brenner.
9
10
at the Arlesheim site under single management, ensuring the unique
pharmaceutical-anthroposophic quality remains the responsibility
of the respective heads of production. Operational activities are
being combined and controlled centrally for the entire site. Our aim
is to enhance productivity.
OpEx affects employees who are directly or indirectly involved in the development and provision of product services for
our customers, including support processes. We expect OpEx to
generate definite growth in productivity and thus savings.
Operational Excellence initiative launched in Production
The Operational Excellence (OpEx) approach leads an organisation
to achieve continuous improvement. OpEx is a systematic approach
to structural, process and behavioural changes in order to carry out
production-related work as best as possible. These improvements
are achieved with the participation of those concerned.
Dr Samir Kedwani – passed away on March 11 th 2015
While we were compiling this Annual and Sustainability Report, we received the
sad news of the sudden death of our colleague Dr Samir Kedwani. Samir Kedwani
made a significant contribution to the work in 2014.
When asked some time ago in an interview for our employee magazine how he would be remembered in
the future, he answered, ”He remained a human being in all situations”. This ”in the future” unfortunately
came much sooner than expected. We, the employees of Weleda, can confirm: yes, Samir Kedwani
was a man who remained a human being, even when the situation was sometimes trying. He was born
on June 10th 1965 in Cairo, Egypt. His father was Egyptian and his mother, Austrian. His parents soon
moved to Austria. Samir Kedwani grew up in Salzburg and Graz, where he studied pharmacy at university
after graduating from secondary school. During his studies, he encountered the teachings of Hildegard
von Bingen, classical homeopathy and herbal medicine. Following his doctorate on the sweet chestnut,
he worked for two years in a pharmacy from 1993. Between 1995 and 1998, he headed up the
pharmaceutical division of an Austrian natural medicines manufacturer.
He joined Weleda Austria in Vienna in 1998, and soon became its managing director. Within just a short
time, he succeeded in thoroughly modernising operations in Austria. This drew attention to him in the
Weleda Group, and in 2001 he was called to Schwäbisch Gmünd to take on responsibility for pharmaceutical
manufacturing. From 2005, he also became responsible for the Arlesheim (Switzerland) and Huningue
(France) sites. He ensured that existing duplication in production was gradually reduced with calm,
persistence and prudence. In 2012, he was appointed COO on the Executive Board of Weleda AG. Samir
Kedwani lived for anthroposophic pharmacy. The economically sustainable manufacture of Weleda
pharmaceuticals was one of the substantial challenges, on which he worked until the end. Retaining existing knowledge was also one of his great concerns, and he therefore initiated the creation of a competence
centre for anthroposophic pharmacy shortly before his death. Samir Kedwani will remain in our hearts
as an extremely kind and competent colleague and friend. We will continue his work in his spirit.
Sustainability
Sustainability strategy:
actively shaping the future
2014 was marked by the implementation of the sustainability targets and strategic
considerations on the future direction. The issue of therapeutic diversity was
included as an additional area of action. Marketing, Finance and Human Resources are
now represented in our core Sustainability team.
The newly added areas of Marketing, Finance and Human Resources
How can we do good for all parties involved throughout the
mean that all three pillars of sustainability – economy, social and Weleda supply chain? What economic, social and environmental chalenvironment – are now represented even more strongly in the core lenges does the future hold for us? Where do we see our duties and
team, in line with the criteria of the Global Reporting Initiative.
how do we fulfil these consistently? Where do we also leave ourWe were able to achieve important objectives in 2014. In selves scope to respond to new issues according to the situation?
the area of economic sustainability, for example, the number of An interdisciplinary working group focused on these issues in the
innovations increased and the internal innovation process was re- year under review. The considerations are currently being developed
vised. Sustainability objectives now form part of the agreements into a target, which will then be agreed with the key stakeholders.
for managers. All objectives of the sustainability strategy are sum- The outcome, including the results of a stakeholder survey, will then
marised on the next two pages, along with the results from the form the basis for a revision of the strategic sustainability orientayear under review.
tion.
New area of action: therapeutic diversity
Environmental
protection
Biodiversity and
sourcing of raw
materials
Sustainable
packaging
Corporate
responsibility
Corporate
sustainability
strategy
Therapeutic
diversity
Fair trade
Commitment
to employees
The sustainability flower covers all areas of action of the sustainability strategy. Water and climate protection were merged into
a single field in 2014. We included the issue of therapeutic diversity as an additional area of action. Weleda promotes diversity of
medical approaches by making a significant contribution to maintaining anthroposophic medicine as a cornerstone of complementary medicine and further developing it. In addition to application
within the company (raw material logistics, manufacturing, quality assurance, research, development), this also refers to dialogue
with doctors, associations and political bodies at international
level. The pharmaceutical strategy should be viewed in light of
this social commitment; this strategy aims for the development
of a needs- and future-oriented, economical pharmaceutical
range.
Living and experiencing sustainability
The sustainability strategy comprises seven central areas of action.
Sustainability is close to our heart
The current sustainability strategy covers the period from 2010 to
2015. In the year under review, we therefore introduced an assessment of the current situation and re-evaluation. Sustainability is
the model for the way we conduct business. It is something close
to our heart that also motivates us. The sustainability targets and
duties will therefore remain a priority and continue to form an integral part of our corporate strategy in the future.
We make high demands of our partners and suppliers with regard
to responsible use of resources. We also encourage sustainable
awareness and a sense of personal responsibility within our own
company. Together with all departments, we developed objectives
and measures for area-specific environmental management in the
year under review. This resulted in a binding handbook for all employees, with criteria that are checked annually for the ISO 14001
and EMAS certifications.
You can find further information on environmental, social
and economic responsibility in the individual sections, starting on
pages 15, 25 and 31.
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Sustainability
Goals and measures of Weleda’s
sustainability strategy
At the heart of Weleda’s sustainability strategy are goals that concern the company’s core business.
The overview below shows the achievements made and the new objectives.
Goal met
Goal partially met
Goal not met
Goal achievement not yet known
In the case of long-term goals over a period of many years, goal achievement is only known in the final year.
Economy
Goals set
Achievements 2014
Goals 2015
Annual calculation of economic indicators on
sustainability performance to 2014
Stakeholder survey not yet completed
The goal will be continued
Improvement in the earnings situation for
pharmaceuticals by 2016
Measures from the pharmaceutical strategy
for 2014 implemented
Stakeholder survey in 2014
Stakeholder survey not yet completed
The goal will be continued as part of the
sustainability strategy revision
Launch of innovations in 2014
Number of innovations increased; innovation
process revised and implemented
The goal has been achieved; the new innovation process has been operationalised. No new goals for 2015
New goal
Reduction of net debt to improve risk capacity
and independence
Complete elimination of net debt by the end
of 2015
Social
Goals set
Achievements 2014
Goals 2015
Validation of all raw material suppliers according
to the Weleda UEBT standard (Union for Ethical
Biotrade) by 2015
Risk assessment completed, definition of
measures and auditing of (upstream) suppliers
successfully started
Annual support for two social projects
Projects in Honduras and Madagascar were
supported in 2014
Development of social criteria for suppliers by 2015
Evaluation started
Development of a concept for social criteria for all
Weleda suppliers, for example in a master’s thesis
Definition of area-specific sustainability issues as
a basis for the involvement of employees by 2014
A handbook with area-specific requirements has
been completed
Programme to raise awareness and promote the
sustainability commitment; operationalisation of
area-specific sustainability requirements
Annual enhancement of the offering on diversity
management, including health management
First healthcare marketplace in Switzerland;
offerings of the Weleda Academy on the issue
of mental health and resilience in Switzerland
and Germany
Development of a uniform assessment system for
suppliers in collaboration with UEBT members
Sustainability
Goals set
Achievements 2014
Goals 2015
Annual offer of a supporting programme
for employees
Advisory service on parental leave and maternity;
partnership programme; introduction of an
expectant-mothers meeting; WE CARE meetings
in Germany for employees with domestic care
responsibilities
Further development of offers for reconciling work
and private life
Promoting equal career and earnings opportunities
for men and women by 2014
Remuneration system introduced in Germany
and Switzerland
New goal
Promotion of professional and personal development
for employees
Development of a concept for talent management
within the Weleda Group; further development
of the Weleda Academy and diversity management
offerings
New goal
Further development of a sustainable training
strategy
Implementation of the approved acquisition policy for
apprentices; development of the “International
Weleda Junior Company” concept as a component in
the training curriculum
New goal
Introduction of a new sustainable development
programme for new managers
Establishment of the “Management in Focus”
development programme for new managers in
Switzerland, Austria and Germany
ENVIRONMENT
Goals set
Achievements 2014
Goals 2015
Increase in the organic proportion of plant-based
raw materials to a minimum of 80 per cent by 2015
This proportion was increased by 5 per cent
to 83 per cent.
The goal for 2015 has already been achieved
Reduction in energy intensity of 3 per cent each
year until 2015
The strategic target for 2014 was achieved
Increase in water efficiency of 5 per cent each
year until 2015
The strategic target for 2014 was achieved
Annual further development of environmentally
friendly, recyclable packaging for natural and
organic cosmetics
Potential for optimising existing packaging and
optional materials has been investigated
Reduction in waste intensity of 5 per cent each
year until 2015
The strategic target for 2014 was not achieved
Introduction of mobility management in 2013
The goal was not continued in 2014
Development of environmental criteria for
suppliers by 2015
Criteria for paper and printing were approved
Fully traceable palm kernel oil supply chain for
85 per cent of the entire range by 2015
Partially met
Revision of internal palm oil / palm kernel oil strategy.
Improvement of availability of palm kernel oil-based
derivatives from suppliers. Participation in working
groups in the Forum for Sustainable Palm Oil
(www.forumpalmoel.org)
Change of raw material in the event of not
switching to sustainable palm kernel oil by 2015
Partially met
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14
Ökologie
“A LOT OF ENERGY, TIME AND
PASSION WENT INTO IT!”
DR MEIKE WENK, 32
Head of Active Substance Development,
Natural and Organic Cosmetics in Arlesheim
(Switzerland)
Meike Wenk remembers the exact day late last summer when she
opened the matt, magenta-coloured box for the first time and took
out the tube containing the Evening Primrose Day Cream. “That
was already a special feeling”, says the Head of Active Substance
Development, Natural and Organic Cosmetics in Arlesheim. “After
all, I was actively involved in its development; a lot of energy, time
and passion went into it.” For months, the young biologist and her
three colleagues worked intensively on implementing Marketing’s
aims: finding the right active substance for a product range for skin
from 55 years which is able to reduce the appearance of wrinkles.
The path involved meticulous detective work – and initially led to a
dead end.
“While searching for a plant-based active substance that
can reduce the appearance of wrinkles, our team came across
Dragon’s blood”, explains Meike Wenk, “a red resin with outstanding prop erties.” But unfortunately, it stained the cream red. The
search therefore continued, firstly with more time-consuming literature research. Centella asiatica or tiger grass put her and her
colleagues on the right track: its main active substance, asiaticoside, stimulates collagen formation in the skin, thus reducing
the appearance of wrinkles. But what other ingredients would
go with it? Sacha Inchi, or the Inca peanut from Peru, proved
ideal, the oil of which is rich in unsat urated Omega 3 and Omega
6 fatty acids, breaks down harmful free radicals and soothes
the skin. Added to this was the rich, nourishing oil from the tiny
black seeds of evening primrose – the robust, herbaceous flower
is the typical Weleda lead plant in this range: “Its flowers open
when evening approaches”, explains Meike Wenk. ”This is like
the independence of women in their mid-fifties. They liberate
themselves from their environment and are no longer dependent
on being ’seen’ by others.” Other key ingredients include wheat
germ oil, parts of the olive and pore-refining witch hazel. After
the ‘what’, the ’how much’ has to be determined – the right ratio for day and night creams, body lotion and body wash, for eye,
lip and hand products, and the evening primrose oil. All this is
now in the specifications with which the Evening Primrose care
range can be manufactured permanently to a consistent quality.
Meike Wenk, however, is already on winding paths to new actives,
whose particular properties are sometimes only indicated by a
footnote in an international journal.
Environment
For the future of our environment
We engaged in environmental protection and promoting biodiversity through
numerous initiatives in 2014. The update to and amalgamation of the
environmental handbooks for Germany and Switzerland resulted in an improved
tool for our environmental management.
Environmental procurement of raw materials
We were already able to exceed our aim of achieving a proportion
of 80 per cent plant-based raw materials from organic and biodynamic cultivation by 2015 in 2014. The organic proportion of plantbased raw materials was 83 per cent in the year under review.
Six hundred and fifty natural raw materials are used in the
manufacture of Weleda products. Some of the raw materials are
obtained from local partnerships, via which Weleda contributes to
a regular income and improved living conditions for smallholders
and wild collectors. In the Moroccan Atlas Mountains, for example,
we support a cooperative of more than 300 smallholder families,
who organically farm iris crops. The essential oils from the rootstocks are valuable ingredients in the manufacture of Weleda natural and organic cosmetics and fragrance blends.
Following approval of the internal palm oil strategy in 2013,
we were able to achieve our goals in 2014. Weleda products are
manufactured either without palm oil or using proven sustainable
palm kernel oil or its derivatives. In addition, Weleda is represented
in two projects. In the Communication working group of the Forum
for Sustainable Palm Oil (Forum nachhaltiges Palmöl – FONAP,
www.forumpalmoel.org), we developed information and awareness-raising possibilities on the issue of palm oil. We participated
in the WWF’s Palm Oil Buyers’ Scorecard in 2013. The WWF used
this palm oil check to assess the use of sustainable palm oil by
companies in the D-A-CH region.
Protecting and experiencing biodiversity
Weleda is actively involved in international organisations for biodiversity and sustainable use of natural resources. In 2014, we
continued our involvement in the network Biodiversity in Good
Company (www.business-and-biodiversity.de). We were successfully recertified by the UEBT (Union for Ethical Biotrade) after three
years of membership (page 27).
At the Baden-Württemberg State Horticultural Show in
Schwäbisch Gmünd, Germany, Weleda apprentices and partner firms
committed to sustainability built a pavilion together which drew
Geneviève Barraqué
Practising masseuse for well-being massages, France
I have been aware of the Weleda brand for more than 20 years. It’s the
only brand that I use in my job. I trust the company’s commitment to quality
and harmony with the human being. I consider using Weleda products
as real care that nourishes my whole being. I feel the living energy behind
every composition, and I know that it brings pleasure every time I offer
a new product from a range. This is seen by my clients as being particularly
attentive.
15
16
Environment
a ttention to the importance of the elements water, fire, earth and
air. You can read more about the State Horticultural Show, a highlight of 2014, on page 26.
To raise awareness among Weleda employees of the importance of biodiversity and its beauty, biodiversity days were
held in Switzerland and France in summer 2014, with tours and
lectures. In Arlesheim, an excursion was led through the Reinach
heath (Reinacher Heide), a conservation area close to the company’s premises, which is home to 700 species of animal and plant.
In Huningue, employees could test their knowledge on an interactive biodiversity trail.
Weleda premises
The total area of Weleda’s operating premises and buildings is
469,713 square metres. In total, 129,722 square metres of the
company’s premises are adjacent to protected areas and areas of
high biodiversity value, while 22,737 square metres have a high
biodiversity value in their own right. The Weleda medicinal plant
gardens, which are located at various sites around the world, take
up a significant portion of the premises. We grow medicinal plants
for the manufacture of Weleda pharmaceuticals and natural and
organic cosmetics in the biodynamically cultivated gardens.
Weleda supports Swiss bee and beekeeper
projects. The young beekeepers of the Bee Club
learn how to keep and care for bees. Insect hotels
offer wild bees valuable nesting opportunities.
Differently sized drilled holes as well as reed stems
or thin bamboo sticks serve as brood cells for
the bees.
2013
Raw materials in tonnes
2014
Conventional
Organic,
biodynamic
Organic
component in %
Conventional
Organic,
biodynamic
Organic
component in %
Plant-based raw materials1
548.1
1,995.0
78
477.6
2,362.7
83
Animal-based raw materials2
127.1
27.1
18
130.3
28.3
18
Minerals3
32.3
33.1
1,047.7
1,498.1
5
228.0
208.2
Fossil-based organic raw materials6
3.2
2.8
19.8
21.9
Near-natural raw materials4
Inorganic raw materials and metals
Biotechnologically produced raw materials7
With plant-based bulking materials, starches, emulsifiers, etc.
Honey, lactose (for solid pharmaceutical forms), beeswax, lanolin, etc.
3
Clay, talc, salt, etc.
4
Surfactants, glycerol, etc.
Siliceous bulking materials, chalk, metals for production of pharmaceuticals, etc.
Petroleum jelly and paraffins for specific medicinal ointments
7
Natural thickening agent
1
5
2
6
Environment
In 2014, the Weleda Brazil medicinal plant garden was
awarded Demeter certification. Around 50 different species of medicinal plant are cultivated there for pharmaceutical production, including Avena sativa (oat), Bryophyllum and eucalyptus. Fruit-
bearing trees such as avocado and papaya also provide a habitat
and food for various species of animal.
Part of our identity is to design our own premises to be
nature-oriented and to appeal to employees and guests. At the
Huningue site in France, for example, a biodiversity path and hanging garden in the building foyer are two highlights for observers.
In the year under review, Weleda Germany took part in the
“Nature Value” research project of the German Federal Agency for
Nature Conservation. A case study is investigating how company
premises that are designed to be nature-oriented can contribute to
promoting biodiversity. The study will be published during 2015.
January 2015, standardised recycled paper that meets high environmental criteria has been used throughout the company in
marketing and communication. Compliance with our measures is
checked annually in the ISO and EMAS audits.
Eco-friendly mobility
To lower harmful emissions, Weleda promotes eco-friendly modes
of transport. Powered by green electricity from hydropower, an almost silent and emission-free electric van is in use at the Arlesheim
site between the company’s premises and external warehouse. In
Schwäbisch Gmünd, an electric car is being used as a company vehi
cle for journeys between different sites. It is powered by electricity
from Weleda’s own photovoltaic system.
Tools of Weleda’s environmental management
Weleda’s Arlesheim site was successfully revalidated to ISO 14001
in 2014 and – like Weleda Germany – also meets the EMAS requirements (Environmental Management and Audit Scheme). By integrating the ISO and EMAS criteria in the Weleda environmental
management system, we want to systematically improve and
transparently document our performance in protecting the environment and biodiversity. Compliance with the requirements is
assessed annually by internal and external auditors.
We introduced an environment handbook in 2014. The handbook is binding since January 2015 and applies initially to the Weleda
sites in Switzerland and Germany. It describes the specific environmental impacts of individual areas of the company. Our aim is to
reduce environmental damage in everyday operations by developing new measures based on the defined environmental impacts.
One area of action, for example, is materials procurement. Since
Cycling to work
In summer 2014, employees from the Weleda sites in Germany,
Switzerland and France took part in a health-promoting initiative to help the environment. Twenty-seven teams totalling
104 employees swapped cars for bikes for their journeys to
work. The participants all got pedalling with a great deal of
fun and commitment and covered a total distance of 16,456
kilometres. Although this does not correspond to the target
of circumnavigating the Earth, it does reach as far as Sydney.
The energy balance is clear to see: the teams burned around
385,000 calories. By way of comparison, a car would have
emitted 2.2 tonnes of carbon dioxide.
17
18
Environment
Water – our most valuable commodity
All Weleda Group companies are committed to using the vital element water
as efficiently as possible. In 2014, we were able to further reduce water
consumption per kilogram of manufactured product content and substantially
undercut the target set.
Careful use of water
There are good reasons for using the valuable resource of water
carefully. As a result of climate change, drought or at least lower
season rainfall are predicted in many countries around the world.
Wasteful journeys and preparation processes as well as industrial
pollutants are affecting drinking water quality and damaging our
ecosystems. We contribute to protecting the environment through
the organic, pollutant-free cultivation of our raw materials, and
the avoidance of antibiotics and hormonal substances in our pro
ducts. This also generates lower costs to the public and for the
company.
Total water consumption falls compared with 2014
In comparison with 2014, we were able to reduce total water consumption by approximately 5,000 cubic metres. Due to moderate
summer temperatures, ground water consumption for the air conditioning at Weleda France fell. Although Weleda Germany collected
less rainwater to water the medicinal plant garden due to lower
rainfall in 2014, it only had to compensate for this slightly by using
drinking water.
Drinking water consumption rose in 2014 by approximately
17,000 cubic metres year-on-year. At Weleda Switzerland, the value
measured for 2013 was below actual consumption due to the meas-
Performance figure: water intensity
This performance figure shows the amount of water
consumed from the public water supply in litres per
kilogram of product content manufactured.
Strat. goal 2014: 11.8
2014
9.5
2013*
9.8
2012
13.3
The strategic goal is calculated from an annual reduction of
5 per cent, starting from the basis year 2010.
*Due to a technical defect on a measuring device, actual
consumption in 2013 was above the value given.
This reed bed wastewater treatment plant is used to clean waste
water from the kitchen and sanitary facilities of the buildings at
the medicinal plant garden in Schwäbisch Gmünd.
uring device having a technical defect. The actual value for 2013
could no longer be determined, which makes a direct comparison
difficult. A two-year comparison shows that water consumption at
the Arlesheim site fell by approximately 10,000 cubic metres from
2012. Weleda France was also able to save approximately 5,000
cubic metres, primarily through lower steam production.
Group-wide, it was possible to decouple drinking water
consumption from production growth. While production volumes
have risen by more than 50 per cent since 2010, drinking water
consumption has fallen.
Strategic target undercut
We were again able to reduce water consumption per kilogram of
manufactured product content. Due to the technical defect mentioned, the 2013 water intensity figure cannot be used as a comparison. However, a two-year comparison shows that water consumption fell by 3.8 litres per kilogram of product content from 2012. This
result is due to economies of scale from higher production volumes
and efficiency projects implemented, meaning that we were able to
significantly undercut the strategic target for 2014.
Environment
Clean energy for the future of our planet
Climate change is the biggest environmental challenge of our time. To limit global warming,
industrialised countries in particular are required to drastically reduce their greenhouse
gas emissions. We have been committed to using energy as efficiently as possible and
increasingly using renewable energy for many years.
Energy consumption and emissions
The share of renewable energy remained constant compared to the
previous year in 2014. Over 93 per cent of electricity consumption
in the Weleda Group came from renewable sources. The share of renewables in direct energy consumption was 6 per cent.
Weleda Switzerland now covers all of its electricity requirements from hydropower and solar energy from certified renewable
sources. The electricity supply of a rented storage building was
switched in 2014. Emissions values were 5.2 per cent higher than in
the previous year. Although direct emissions fell by 7.9 per cent, indirect emissions increased as a result of the higher proportion of coal
and heating oil in the generation of conventional electricity.
Weleda France worked on setting up a network for cooling
in 2014. This should lower greenhouse gas emissions by 10 per cent
and will affect the figures for the coming year.
Group-wide energy consumption increased slightly compared
to 2013 in the year under review, by 1.6 per cent. The largest-producing Weleda companies (Germany, France, Switzerland) consumed only
just under 1 per cent more energy, despite a 10 per cent increase in
volumes manufactured. Based on this pleasing result, we were able
to further improve our energy intensity in 2014 and undercut the
strategic target. Only 3.6 kilowatt-hours of energy were required per
kilogram of product content, rather than 4.1 kilowatt-hours of energy
previously. Successfully implemented measures to improve energy
efficiency and economies of scale contributed to this good result.
Woodchip heating at the Arlesheim operations
area results in a significantly better CO2 balance
than heating oil or natural gas.
Reduction in greenhouse gas emissions:
heat energy from renewable sources
Performance figure: energy intensity
This performance figure shows the amount of energy consumed in kilowatt-hours per kilogram of product content
manufactured (for the German, French and Swiss production
locations).
Strat. goal 2014: 4.1
2014
2013
2012
3.6
4.1
4.3
The strategic goal is calculated from an annual reduction of 5 per cent,
starting from the basis year 2010.
In November 2014, Weleda Switzerland signed an agreement with
the Swiss Federal Office for the Environment (FOEN). Under this
agreement, we commit to reducing our greenhouse gas emissions
by a total of 125 tonnes in the next eight years. In return, Weleda
is exempt from the CO2 levy until 2020. The reduction in greenhouse gas emissions will be achieved through investments in
technical equipment and buildings.
Weleda Germany is currently examining the use of a combined heat and power station. This type of plant can generate heat
and electricity at the same time, thereby significantly improving
efficiency. New windows with better insulation were installed at
the Schwäbisch Gmünd site in 2014 to use heat energy more efficiently.
19
20
Environment
Packaging design challenge
We were involved in the further development of environmentally and economically sustainable
packaging solutions through various initiatives in the year under review. Many factors have
to be taken into account: from eco-friendly raw materials to visually and haptically appealing
design to recyclability.
From raw material to recycling
21.4 tonnes less packaging material
We strive to constantly improve the recyclability of our packaging.
A team from various departments is dedicated to optimising existing packaging and finding new packaging solutions. The foundations
were developed in a term paper for further indicators to enable more
detailed measurement and control of the environmental aspects of
natural and organic cosmetics packaging. The next step is to improve the data base in order to enable valid statements.
An adjustment in regard to the folding cardboard used for the boxes
of some natural and organic cosmetics means that we now no longer
need an additional printing process in manufacturing. Thanks to the
better stability properties of the cardboard, the weight is also reduced, resulting in an annual saving of approximately 1 tonne of
packaging material. Since 2014, product information has been
printed on folding boxes in a more eco-friendly way, using colour
printing instead of silver foil.
In pharmaceuticals, we were able to optimise the glass packaging of tablets and triturations by reducing the range of diameters
to a smaller number of uniform formats. This makes filling significantly more efficient due to shorter set-up times. Lighter screw caps
for dilutions are enabling us to reduce material consumption by
around 1.4 tonnes per year.
By reducing the basic formats to a few uniform
sizes for glass packaging, the filling of
tablets and triturations has become significantly
more efficient.
Bioplastics not yet an option
As a partner of the Association of Ecological Food Producers (Aöl,
www.aoel.org), we are involved in a two-year project on “bio-based
plastics”. We shared our requirements for packaging made from
plant-based plastics here. Manufacturers of the starting materials
in particular were made aware of the requirements when cultivating the plants, e.g. refraining from using genetic engineering. This
project resulted in a web-based platform on which bioplastics can
be assessed for use in packaging. For Weleda, the use of bioplastics
is currently not yet an option due to the starting materials used
until now and due to packaging requirements.
Performance figure: packaging intensity
This performance figure indicates the weight of the
packaging in grams per kilogram of all products manu
factured in 2014.
397
2014
2013
2012
388
368
Environment
Sustainable use of waste
The growing production volumes also resulted in higher waste volumes in the year under review.
Ever more recoverable materials are entering the recycling loop, and all Weleda national
companies are committed to waste avoidance and sustainable recycling. Waste intensity was
improved significantly compared with the previous year.
Ninety-eight per cent of waste recycled
Production volumes rose again at the German and Swiss sites in
2014. This had an impact on waste volumes, which were 7 per cent
higher than the previous year at 90 tonnes. The relocation of Weleda
departments to other buildings and a higher number of trial batches
contributed to the increase. Fortunately, volumes of both hazardous
waste, such as alcoholic tinctures and chemical additives, and of
waste sent to landfill fell by a total of 24 tonnes. Ninety-eight per
cent of waste was recycled, which is a 2 per cent increase on the
previous year.
Weleda already recycles, reuses or composts 63 per cent
of all recoverable materials. These include in particular paper, cardboard, packaging for raw materials, glass and green waste. Thirty-
four per cent of recoverable materials are incinerated. Due to ever
scarcer raw materials, our aim is to continuously reduce waste
volumes and increase the proportion of recyclable or compostable
materials. Ideally, there would be an entirely waste-free material
cycle in production. This is already possible in the medicinal plant
gardens, where plant residues from tincture manufacture are
composted.
Plant-based waste is processed into
fertile soil at the in-house composting
facility and reused.
Commitment in the countries
All Weleda companies are aware of sustainable waste recycling. In
France, thanks to the change of a waste disposal partner, 10 tonnes
of waste that were previously sent to landfill are now used to generate energy. In Germany, wooden pallets from goods deliveries
are no longer incinerated but are in a reuse cycle. Weleda UK was
able to optimise waste sorting, and thus achieve a higher proportion of recycling. The volume of waste sent to landfill was also reduced with a new waste disposal partner.
Residual raw material from the production of pharmaceuti
cals and natural and organic cosmetics is now also fermented and
used to generate biogas energy.
Performance figure: waste intensity
This performance figure shows the amount of waste generated in kilograms per tonne of finished product manufactured.
Strat. goal 2014: 111.4
2014
111.8
2013
115.5
2012
115.7
The strategic goal is calculated from an annual reduction of 5 per cent,
starting from the basis year 2010.
The strategic goal of an annual improvement of 5 per cent, starting from
the basis year 2010, was narrowly missed.
21
22
Environment
Overview of resources used to manufacture
Weleda products
Direct energy consumption in gigajoules
Total
Non-renewable energy sources
2014
50,767
50,435
51,029
48,137
47,629
47,861
45,907
46,235
Heating oil
482
1,480
1,426
Fuels, oils
292
241
200
2,630
2,806
3,168
2,630
2,806
3,168
20121
20131
2014
Renewable energy sources
Biogas
Indirect energy consumption in gigajoules
Total
Non-renewable energy sources
Electricity
55,325
54,147
3,446
3,151
55,211
3,131
1,751
1,500
2,008
Heating and cooling
916
765
648
Nuclear energy
735
843
434
44
43
41
51,878
50,996
52,080
Other
Renewable energy sources
Solar energy
367
425
518
Wind energy
2,135
1,322
1,462
Geothermal energy
Water power
Biomass-based secondary energy
Hydrogen-based secondary energy
56
0
1
46,454
46,201
47,828
2,420
2,677
2,139
446
371
132
2012
2013
2014
156,879
147,988
142,630
90,628
63,752
80,460
5,887
5,488
4,357
60,364
70,2411
57,813
Values for 2012 and 2013 have been corrected versus the 2013 report.
Water consumption in cubic metres
Total
Water from public water supply
Rainwater, collected directly and stored
Groundwater
1
2013
47,363
Natural gas
1
2012
The value 127,928 from the 2013 report has been corrected.
Environment
Materials purchased in tonnes
2012
2013
2014
Raw materials
3,366
4,045
4,795
Semi-finished products and bulk goods from external suppliers
Trade goods
Packaging
1
0
0
244
395
4,816
4,9771
5,315
Advertising material
560
575
834
Operational materials
172
106
130
Emissions in tonnes of CO2 equivalents
20121
20131
2014
Total
4,320
4,186
4,369
Direct emissions
3,167
3,100
2,825
2,936
3,067
2,805
231
33
20
Indirect emissions
1,153
1,086
1,544
Electricity, etc.
1,153
1,086
1,544
Waste volumes in tonnes
2012
2013
2014
Total
1,085
1,222
1,312
Normal waste
1,033
1,158
1,250
25
44
39
The value 3,596 from the 2013 report has been corrected.
Emissions for production of hot water, heat and steam
Fugitive emissions
1
43
195
Values for 2012 and 2013 have been corrected versus the 2013 report.
Composting
Reuse
Recycling
Recovery
19
19
41
592
683
738
16
12
13
338
360
398
36
35
14
8
5
7
52
64
62
Recycling
3
3
3
Recovery
1
5
13
47
49
43
1
7
3
Incineration or use as fuel
Landfill
Other disposal
Hazardous waste
Incineration or use as fuel
Other disposal
23
“AMBITIOUS TARGET S ENABLE US TO ACHIEVE
MORE IN THE LONG TERM.”
ANNETTE PIPERIDIS, 49
International Strategic Sourcing Coordinator (Germany)
From chocolate bars to frozen pizzas, from lipsticks to detergents: raw materials are also only sourced from sustainable supply chains.
more than half of all products that are used every day contain palm “While this is a little more expensive, it complies with our commitment
oil or palm kernel oil. Thanks to this universal additive made from the to sustainable purchasing.” This has always been a priority for Weleda.
fruit of oil palms, these items have a longer shelf life; it also gives Through its membership of the Union for Ethical Biotrade (UEBT), the
foods such as yoghurts as well as cosmetics a soft, creamy consist- company has been documenting its own drive for fair trade of raw
ency. “Due to these outstanding properties, Weleda also uses raw materials for its own suppliers, maintenance of biodiversity and for
materials based on palm oil and palm kernel oil in its cosmetic prod- countries of origin to receive decent compensation since 2011. “We
ucts”, says Annette Piperidis, “and at the same time, we are working can now prove this for almost all of our 650 raw materials”, says Pipcontinuously on promoting sustainable cultivation.” The Coordinator eridis, whose department also guarantees social responsibility to
for International Strategic Sourcing also represents the company in partners. For example, from this year, Weleda is providing farmers
the Forum for Sustainable Palm Oil, which campaigns against the de- on the sesame cultivation project in Mexico with vaccines for emerstruction of the rainforests and slash-and-burn farming in Indone- gencies – scorpion stings can be life-threatening in the remote fields.
sia and Malaysia, for example, and for careful cultivation. “Compared On the iris wild collection project in the Moroccan Atlas Mountains,
to large corporations, we only buy the smallest volumes”, says the funding was provided for a well. As one of three newly trained inter49-year-old, “but we hope to achieve more in the long term through nal UEBT auditors, the keen amateur gardener recently visited the
ambitious targets.”
project herself and now also preserves the traditional knowledge of
Weleda already only obtains palm oil of the highest quality the Berbers privately. Like them, Annette Piperidis first cut the iris
from a certified organic plantation. By the end of 2015, Piperidis bulbs laterally and only placed a third of each of them back in the soil.
wants to ensure together with her team that palm kernel oil-based The plot should flower particularly abundantly in the early summer.
Social
Living up to values and shaping the future
Weleda is a living organisation. Our culture and values are the basis on which we form
strong relationships for the future. Trust and responsibility shape the treatment of
our employees, customers and partners. We provide scope for development, promote
talent and maintain fair partnerships with our business partners.
Corporate Culture and Identity
Nowadays, society, customers, politics and science often demand
value-oriented companies that operate ethically. Corporate culture
has become a real success factor in being attractive as a supplier
and employer. Ensuring that the company’s culture remains vibrant
and credible both internally and externally requires constant support and renewal. As an anthroposophically inspired company, we
foster and develop our corporate culture. Since 2012, the Corporate
Culture and Identity department has been responsible for corres
ponding services and training offerings. This department has been
assigned to the CEO at Executive Board level since January 1st 2014.
Weleda’s conception of humanity and understanding of
nature determined our identity as an authentic, value-oriented
company. In view of the founding principle of Weleda and the growing competition, identifying with this culture and experiencing a
meaningful community within the organisation is a key differentiator. Our employees are the most important ambassadors of the
Weleda brand. We make a wide-ranging offering on cultural and
value-related activities available to them worldwide.
France. Based on the principle of “perception, transformation and
healing”, participants have the opportunity to intensively examine
anthroposophic aspects as well as getting to know Weleda’s values,
history and products. Current topics such as mindfulness, saluto
genesis, resilience and biographical counselling are also addressed.
Since the launch of the curriculum in 2008, more than 200 employees and managers have taken part.
Other offerings include culture-specific training courses
by the Weleda Academy, the “Anthroposophic pharmaceuticals”
further training series, individual development assistance and support in personnel and organisational development.
Weleda curriculum
An internationally oriented curriculum on “Weleda’s identity and basic values” is the core of our training programme. The nine-day curriculum comprises three modules in Switzerland, Germany and
New: Employee Representative Committee in Switzerland
For us, social responsibility also means actively incorporating the concerns and views of employees in shaping the future of our company. In Schwäbisch Gmünd, the Executive Board and Human
Resources have been working closely in dialogue with the works council for a long time. Based
on a joint initiative by employees and the Executive Board, there has also been an Employee
Representative Committee elected by the employees at the Arlesheim site in Switzerland since
December 2014. In addition to site-specific concerns, cross-site issues will also be developed in
the future. The Executive Board and Human Resources will discuss current challenges and future
issues in a joint workshop with employee representatives from Arlesheim and Schwäbisch Gmünd.
25
26
Social
Apprentices and students from the junior company
“Natural talents by Weleda” together with Ralph Heinisch.
Junior company “Natural talents by Weleda”
The junior company developed
new packaging and an own
marketing campaign for its
“Sonnenschatz” calendula plantbased soap.
Weleda provides targeted support for the development of young
professionals in order to promote potential from an early stage and
to be an attractive employer for driven young people who are attaching increasing importance to a meaningful career with responsibility and creative scope. In light of this, Weleda launched a pilot
project at the end of 2013. Thirty-five apprentices and students
set themselves the task of establishing a company together and
developing an own product which would be sold just eight months
later at the Baden-Württemberg State Horticultural Show in
Schwäbisch Gmünd.
The trainees set to work with a high degree of motivation.
They organised themselves with almost no assistance, selected a
management team and a name (Natural talents by Weleda), set up
departments, including a Values department, doing all this as independently as possible. The management team of the junior company met with CEO Ralph Heinisch once a month.
The young entrepreneurs learned to develop ideas and make
and implement decisions under time pressure. They experienced all
of the processes of a product launch for their product creation, a
soap. The soap, called “Sonnenschatz” (sun treasure) was manufactured in a limited edition and sold at the State Horticultural Show –
accompanied by enthusiastic reports in the press and on social
media. A large drugstore chain thought the project was great and
included the soap in its range for a limited time.
The training project ended in November 2014 with great
success. The trainees achieved impressive personal development
within their company in just a few months. The junior company concept will form a fixed part of Weleda training in Germany and
Switzerland in the future.
Neighbourhood, customers and other stakeholders
More than two million people visited the Baden-Württemberg State
Horticultural Show in Schwäbisch Gmünd (Germany) between
April 30 th and October 12 th. Weleda invited visitors to discover, be
astonished and get involved in its specially designed fourhectare area, next to the company’s own medicinal plant garden.
Weleda maintains good relationships with local communities and
institutions. These again resulted in joint projects in the year under
review. One highlight was the Baden-Württemberg State Horticultural Show in summer 2014 in Schwäbisch Gmünd, which Weleda
helped to organise in close collaboration with the town and the horticultural show organisation. Visitors to the Weleda medicinal plant
garden and experience centre were offered a wide variety of impressions from nature, tours, as well as artistic and cultural events.
More than two million people visited the State Horticultural Show –
an absolute record in the more than 50-year history of the event.
A large proportion of these visitors got to know and value Weleda.
Social
Madagascar’s landscapes are
characterised by rice
fields and small, wooded hills.
Tiger grass grows wild and is harvested
by women from the villages.
Fair trade and working with suppliers
Weleda sources natural raw materials and valuable medicinal plants
from suppliers worldwide. We are committed through a range of
initiatives to improving the living conditions of local farmers and
plant gatherers, and promoting biodiversity in the regions of origin.
In doing so, we work closely with non-governmental organisations
(NGOs).
For example, we buy organic sesame, the seeds of which
provide precious oil for our natural and organic cosmetics, from
Uganda in West Africa. The local cultivation partner supports and
trains more than 450 smallholders. In 2014, we launched a project
to build a well. This facilitates access to drinking water and improves
the sanitary conditions of the smallholders and their families,
affecting a total of approximately 2,800 people. We are aiming for
further supplier cooperation for sustainably produced sesame oil,
which would create the opportunity to expand the social commitment of the project.
A further example is the support we provide in Madagascar
for local smallholder communities in a wild collection project for
The tiger grass is passed through a deduster before being
ground and packaged.
Centella asiatica (tiger grass). Centella extract is used in our natural and organic cosmetic products. Some 700 smallholders collect
the plants that are processed by Weleda’s supply partner. By reno
vating a schoolhouse, we are committing locally to education and
in particular to the advancement of girls. The project is scheduled
to run for a period of five years.
Union for Ethical Biotrade (UEBT)
Weleda has been a member of the UEBT since 2011, and implements
its standards for the promotion of biodiversity and socially fair procurement practices. The UEBT assesses its members’ compliance
with criteria after three years. Weleda was successfully reaccredited in 2014. Many UEBT criteria have also been compulsory for our
raw material suppliers since 2013.
Weleda supported the UEBT Conference and the Biodiversity Barometer 2014. This gives insights into the development of
consumer awareness as well as reporting by the cosmetics industry
on biodiversity. Every year, the UEBT surveys 1,000 consumers in
selected countries. Since the survey was first published in 2009,
38,000 users in 13 countries have been interviewed, and new countries are added every year. The focus countries in 2014 were Brazil,
Germany, France, the UK, the USA, Colombia and Vietnam. The results were published at the UEBT’s Annual Conference in April 2014
in Paris (http://ethicalbiotrade.org/biodiversity-barometer).
27
28
Social
Sandalwood raw materials project:
growth for people and for nature
We ensure the supply of valuable sandalwood extract for our natural and organic cosmetics
with a reforestation project in the Sri Lankan uplands. People and organic cultivation in
the region are also supported. This project demonstrates how social, environmental and
economic concerns can be connected in a forward-looking way.
The idea of cultivating sandalwood plants and other crops such as Sustainable harvesting rhythm
tea, fruit trees and cinnamon together is a new one. The different To achieve a sustainable harvest mode, the 500 naturally grown
crops and the old, extensively used and now organically certified sandalwood trees on Rajiv Kulatungam’s farm have to be harvested
tea bushes ensure a basic income for the people involved. Weleda in phases. At the same time, 250 trees per hectare are replanted
has been making a contribution here since 2009, by giving the every year. The project enables us to combine a transparent supfarmers a higher, contractually agreed kilo price for sandalwood oil. ply of sandalwood oil with providing sustainable support for local
The daily wage for agricultural workers is also one-quarter higher people.
than the usual wage. In addition, we support a training centre that
offers farmers’ and workers’ cooperatives training on organic cultivation, thus firmly rooting the idea of organic agriculture.
Preciousness from nature
Sandalwood extract is one of the most precious natural fragrances.
The wood from controlled origins in state-owned forests is first of
all crushed, processed into rough shavings and then distilled using
steam. One hundred kilograms of wood produces around one litre
of sandalwood essential oil which we use as a base fragrance in
sea buckthorn and pomegranate products, as well as the new
Evening Primrose product range. There, it develops its inspiring
scent and supports the skin’s natural balance.
Rajiv Kulatungam
is responsible for this tree
nursery in the sandalwood
reforestation project.
Social
Overview of employees of the Weleda Group (as at December 31st 2014)
D-A-CH region
Total number of employees
Western
Europe
Northern,
Central and
Eastern Europe
North America
South America,
Italy, Spain
Asia/Pacific
1,346
521
68
27
282
55
Number of male employees
458
139
8
7
86
16
Number of female employees
888
382
60
20
196
39
Full-time employees
895
350
58
26
217
27
Part-time employees
451
171
10
1
65
28
72
8
0
0
10
2
*
Nature of employment
of which trainees, apprentices,
marginally employed staff, volunteers
Employees by age group
Up to 30 years of age
269
66
11
*
80
31 to 50 years of age
760
326
49
*
165
*
51 to 60 years of age
262
112
6
*
33
*
Over 60 years of age
55
17
2
*
4
*
Number of nationalities (total)
25
8
4
3
13
8
* Employment cannot be disclosed by age group for legal reasons.
Composition of regions (associated companies):
D-A-CH: Germany, Austria, Switzerland
Western Europe: France, UK, Benelux (Netherlands, Belgium)
Northern, Central and Eastern Europe: Sweden, Russia, Czech Republic (and Slovakia)
North America: USA
South America, Italy, Spain: Argentina/Chile, Brazil, Italy, Spain
Asia/Pacific: Australia, New Zealand (excluding Japan, as minority holding)
Pedro Toledo
Managing Director, Sesajal S.A., Mexico
We supply organic quality sesame oil. Weleda is one of our most
important customers and requires the best quality from us.
Weleda has an excellent reputation among all of our employees
because the company’s employees are open and transparent,
and very committed to the relationship. Although Weleda is very
demanding in terms of quality, it fully respects the contract.
29
30
“W
E
CUS RESP
IN T OME EC T O
AL L
UR
R
AS S
PEC
FR A
T S.
N
ÇOI
Com
”
S
m
Hun
E
er
ing cial Di KESS
ue
(Fra rector LER,
in
46
n ce
)
Three hours. That’s how long it takes the TGV high-speed train
to connect two worlds: Mulhouse and Paris. The home town of
Françoise Kessler and the capital city with the Espace Weleda, the
unique Weleda showroom, and INSEP, the French National Institute
of Sport and Physical Education, where Weleda Arnica Massage Oil
is used to soothe the muscles of top sportspeople. Twice a month,
the commercial director for the French market travels from Alsace
to Paris to meet major clients, media representatives and colleagues
and to “get a feel for what is happening”. And when she returns to
her office in Huningue, where the borders of France, Germany and
Switzerland meet, and the small village where she lives, she enjoys
the calm and the natural environment. Opposites not only attract,
they unite as well, and this is something Françoise Kessler enjoys too.
Twenty years ago, after a degree in advanced international
business studies, she joined Weleda as a marketing assistant
somewhat by chance and got to know the products. “After a while,
I couldn’t use anything else”, she remembers, “and, at the risk of
sounding corny, they feel like ’coming home’.” She then thought:
“Surely there are many other people who feel the way I do?” All those
women who do not necessarily always opt for organic but who are
nevertheless drawn to natural cosmetic products with – and why
not? – a touch of glamour. This is not something the Pomegranate
care range claims to offer – the range the commercial director and
her 55-strong team have been focusing on since 2014 to appeal,
in particular, to the modern woman over forty. Which is not to say
that the extract from these precious seeds is without an element of
sensuality: “The red colour is a terrific strength and the fragrance is
very attractive”, says Françoise Kessler, who plans and coordinates
marketing, communication, advertising and sales in France. “On top
of that, the product wins people over thanks to its authenticity”, she
adds. “For us, women are beautiful because they are true to themselves, and we are there to provide products of the highest quality that help their skin look good regardless of age. These are the
values of primary importance for Weleda.” As is transparency: from
sustainable sourcing to social commitment with our own cultivation
projects, through to the purity of ingredients, everything is communicated openly. This is why there have been no additional donation
projects to date. “We’ve been thinking about it, but we don’t want
to do something run of the mill”, explains Françoise Kessler. “We also
don’t want to force anything on our customers, not even in a very
subtle way. We respect them in all aspects.” Everyone should be free
to decide whether and how he or she expresses their commitment.
And perhaps the very personal experience that is part and parcel of
a Weleda product is already part of that commitment.
Economy
Sustainable business: an interview with
Michael Brenner, CFO of the Weleda Group
In September 2014, Weleda was awarded the sponsorship prize in the category “Business” by the Anniversary Foundation of Basellandschaftliche
Kantonalbank. CFO Michael Brenner explains how the award fits well with
Weleda and what we understand by doing business sustainably.
It’s unusual for Weleda to receive a business award. Has the
direction of the company changed ?
It is, in fact, the first time Weleda has won a prize for business. I’m
proud of this award, as it is a tribute to the transformation process
of the past few years that Weleda as a whole has successfully
driven under its own steam. We also won the award, however, because we have remained true to our principles. In the prize certificate it says: “Weleda is a company that stands out not only through
its determination to ensure the very best quality in its products,
but also through its conception of itself as a social organism that,
in all its business endeavours, seeks to achieve the best solution
for all stakeholders.” This is primarily the backdrop against which
the award should be viewed.
business on a purely profit-oriented basis. Our value-added statement (page 4) shows the contribution made by the Weleda Group in
the year under review in respect of the various stakeholders.
In concrete terms, what is Weleda doing to maintain a balance
between the various elements that play a part in sustainability?
The economic dimension of sustainability means, first and foremost, The prize money was 15,000 Swiss francs. How will this be used?
ensuring Weleda’s existence over the long term. In a world where the Essentially, this prize belongs to all employees. It is with their compace of change is increasing all the time, we have to be able to react mitment that they help ensure Weleda’s success. We will use the
to changes more flexibly and to increase our resistance to potential prize money to extend our training project, the junior company
problems. Secondly – and more importantly – the needs of all stake- “Natural talents by Weleda” (see page 26), throughout the entire
holders have to be taken into account, satisfied in a way that makes Weleda Group in the form of an intercultural project. This pilot
sense, and a healthy balance ensured between these various needs. project already ran successfully at Schwäbisch Gmünd last year;
This sets us apart from other companies, which for the most part do this year, it will be taking place in Arlesheim.
Business award for Weleda
Each year, the Anniversary Foundation of the Basellandschaftliche
Kantonalbank awards a prize to people and companies who have
stood out thanks to their cultural, business or sporting achievements
in and around the Swiss Canton of Basel-Landschaft. The awards
ceremony took place on September 30th 2014 in Sissach near Basel.
The prize-givers praised Weleda as a company with exemplary business practices. CEO Ralph Heinisch accepted the award on behalf
of all Weleda employees.
31
32
Economy
Value-added statement 2014
By conducting business responsibly, Weleda improves its capacity to handle risk – from
behaviour in the market to environmentally relevant aspects through to relationships
with employees and exchanges with all other relevant interest groups and stakeholders.
This creates sustainable value, which can be distributed to employees (earnings),
investors (dividends, interest), charitable institutions (donations) and the public (taxes).
The value-added statement (page 4) shows how Weleda’s business
actions create value for the company: unlike the income statement,
which is based on the viewpoint of the owners, the value-added
statement sets out the contribution made by the Weleda Group to
private and public income. It shows the expense at which Weleda
achieved its company performance and how the added value generated was distributed.
In the 2014 financial year, business performance improved
to EUR 371.9 million based on the EUR 28.0 million increase in
Group performance. After deduction of advance payments, the
added value of the Weleda Group amounted to EUR 159.9 million.
Added value per Weleda Group employee amounted to EUR 81,409
and was thus 12.1 per cent higher than in 2013.
EUR 1.9 million was spent on donations and similar contributions, with EUR 1.5 million of this figure going to the School of
Spiritual Science in Dornach.
The added value was sufficient to cover the income of our
employees. Weleda views its employees as co-entrepreneurs who
are part of the business process. Supporting and promoting a
sense of personal responsibility and self-awareness on the part
of every individual is extremely important to the company. The
public authorities received EUR 12.6 million of added value in the
form of taxes. A further EUR 3.5 million is attributable to interest
for creditors.
Following a proposal from the Board of Directors, a dividend of 5 per cent will be distributed to shareholders for 2014.
Thomas von Künsberg Sarre
Pharmacist, Germany
Every day, my eyes are drawn straight to the Weleda shelves in my pharmacy. The
vibrant colours of the packaging just exude vitality and joie de vivre. I enjoy seeing
customers’ reactions when they’re trying out a hand cream, for example, some
curious, some sceptical, and seeing how they react when the cream slowly releases its wonderful fragrance. Each time, I’m really pleased for my customers
when I see this mixture of delight and relief spread over their faces, together with
the certainty that they’re doing something good for themselves.
Economy
Corporate governance: risk awareness as part
of the corporate culture
Risk management and the Internal Control System (ICS) are key elements
of corporate governance. Over the past few years, we have conducted a
comprehensive overhaul of these elements. In the 2014 financial year, we
were rigorous in following the course set so that these important elements
and processes could be anchored even more firmly in our organisation.
Mr Galliker, how would you assess the level of risk management
and the ICS at Weleda in 2014?
Auditors have to check whether an Internal Control System (ICS)
is in place as part of the review of annual financial statements. As
little as three years ago, our auditors had identified a few issues
in this respect. The Audit Committee took these on board and, together with the Executive Board, initiated measures for improvements. The issues identified have thus been successively and
systematically addressed over the past three years in such a way
that, today, Weleda has a well-functioning ICS, a fact confirmed by
the auditors. What remains to be done now is to maintain this level
and, at the same time, ensure that the ICS can be viewed by staff
as a useful part of their work.
Each year the Board of Directors has to provide information in a financial report about the implementation of a risk assessment. The Weleda Group sees risk management as an important
leadership task which contributes to promoting a risk-aware culture among all employees. For this reason, the risk policy of the
Weleda Group was revised in 2014 under the aegis of the Audit
Committee and the top risks identified, assessed and evaluated
together with the Executive Board. These risks are risks which
could jeopardise the existence of Weleda. The overarching objective of risk management is, thus, to ensure the continued, longterm existence of Weleda as the basis for the ongoing development
of the company. The risks identified are now reassessed by the
Executive Board twice a year and discussed in the Audit Committee. The Audit Committee in turn reports to the Board of Directors
on its assessment of risk management.
Dr Jürg Galliker is a member of Weleda’s Board of
Directors and Chairman of the Audit Committee,
which monitors compliance with corporate governance requirements.
element in monitoring is the comprehensive report submitted by the
auditors to the Board of Directors. If weaknesses have been detected, they are mentioned in the report and we can tackle them
accordingly.
Can you give an example of what such a risk looks like and how
it develops?
One such example would be the fragrance regulations envisaged
by the EU. Now that this topic is no longer such a priority for the
EU, it has been downgraded again. Risks through regulatory
changes remain on our list of top risks, however, which is why we
are keeping such a close eye on further developments in fragrance
regulations. The way we work is a combination of looking back at
what has happened and, at the same time, looking forward to what
could happen in the future.
Was the change in the Swiss National Bank’s euro exchange rate
in January 2015, for example, an issue that was dealt with by the
Audit Committee?
How does the Audit Committee ensure that this level is main- The Executive Board looked at it, issued its assessment and intained?
formed the Audit Committee accordingly. We can use the instruThe monitoring of the risk management system and the ICS is an ments and experience available within the company as a basis for
important part of the Audit Committee’s work. We had good expe- ensuring that risk awareness is in place and that risks can essentially
riences with our risk policy this year. The Audit Committee con- be managed. We can rely on our managers knowing when they have
stantly checks the direction in which the top risks are developing, to report a problem to the Executive Board. An important part of
whether new risks are becoming apparent and whether risks are this is a culture in which things are not swept under the carpet and
potentially cumulating. Alongside the purely formal process, this everything can be discussed. It’s about solving the problem, or makrequires constant dialogue with the Executive Board as well as ing sure that the risks involved can be handled appropriately. In this
knowledge of the company and its environment. A second important respect, too, we see Weleda as a learning organisation.
33
34
“THIS IS MY
DREAM JOB!”
DR CHRISTIAN BIRRINGER, 36
Head of Star ting
Substances Manufacture and
Head of Tincture
Production (Germany)
Bright yellow. Liquid. Very much like limoncello! However, the liquid
that comes out of the stainless steel drum at the touch of a button
is not lemon liqueur, but the ingredients for Weleda hayfever drops:
the essential oils of lemon and its citric acid, dissolved in alcohol.
In order for the organic fruits from Sicily to release their valuable
ingredients, they are first shredded in Weleda’s Tincture Production and steeped in alcohol for several days, “in much the same way
as a ’rum pot’”, laughs Dr Birringer, who is in charge of the department. “That lets us get the most out of the plant and work it into
a form that the customer can use.” After all, a whole lemon in itself
is of little use to people who react allergically to grass and flower
pollen. Especially as the fruit is not of interest in anthroposophic
medicine because of its vitamin C, but because of its characteristic trait – its “signature”: as acidic as it is, lemon draws everything
together. This makes it the antithesis of and, therefore, treatment
for hayfever, where eyes and nose start running.
Such an analogy-based approach was not a feature of Christian Birringer’s pharmacy studies, nor was the art of anthroposophic tincture preparation, where actives are extracted from parts
of plants such as roots, leaves or flowers using alcohol, oil or water.
This is done not only cold, but also at different temperatures. Formulations, some of them dating back to Rudolf Steiner’s time, dictate how Birringer and his 18-strong team unlock the essence of
each plant, purely with water, with alcohol or with oil, and whether
some heat should be applied, either by simmering briefly, as is
the case with oak bark, or by boiling vigorously for half an hour.
The application of heat makes it easier for the metabolism to “digest” a substance. In contrast, a cold maceration of a minimum of
ten days is suited, in particular, to treatments for conditions with
nervous causes. “At university, we were always told that no-one
does this type of thing any more”, remembers Christian Birringer, who, even as a child, learned about homeopathy and spagyrics from his parents. He has been at Weleda for nine years. “This
is my dream job. I’m working really closely with what makes our
pharmaceuticals special!” From his office in Wetzgau, overlooking
Schwäbisch Gmünd, Birringer can look out across the company’s
own 20-hectare medicinal plant garden. This is where almost all of
the roughly 160 fresh plant varieties come from, with just a short
trip from the garden to his office: calendula and dandelion as well
as specialties such as bitter nightshade. All the other tinctures
for the more than 100 natural and organic cosmetics and approximately 1,000 pharmaceutical products are made using the “drugs”
that come from the dried parts of plants stored in little paper bags
in a cool warehouse, ready to be used. And nothing goes to waste:
after being pressed completely, the lemons are used in the compost for the medicinal plant garden.
Economy
Weleda pharmaceuticals: working on futurability
With Weleda pharmaceuticals, we operate in a heterogeneous international environment.
Despite increasing regulatory requirements, we have been able to cultivate the market
successfully. The profitability of the pharmaceuticals range is developing positively. At the
same time, we are strengthening the anthroposophic approach to therapy.
Strong growth dynamic thanks to France and South America
With regard to turnover, 2014 was a successful year for our pharmaceuticals, with global turnover up around 10 per cent on the previous year. Although the picture between the various regions and
countries was more mixed, Weleda France did particularly well,
boosted by an extremely dynamic year. The reasons for this were
an optimised sales structure and price increases. Improved collaboration with midwives no doubt also had a part to play, alongside the
strong tradition of individualised medicine in France. The development was all the more encouraging given that the range of pharmaceuticals in France is made up to a large part of physician-prescribed
extemporaneous pharmaceutical products and freely available OTC
products play a merely minor role.
A significant rise in physician prescriptions and OTC sales in
pharmacies generated high growth rates in South America. Pharmaceuticals business remained on a par with the prior year in Germany
and Switzerland, due to a poor cold season. Pharmaceutical sales in
other regions were steady with slight increases.
Weleda pharmaceuticals strengthened in the market
Weleda is seeking to achieve the same high level of recognition of
the Weleda brand in the pharmaceuticals market as for natural and
organic cosmetics. This is why we are strategically investing in
building up the brand and promoting sales in the areas of stress
and sleep, eyes and colds. A number of training and advertising
campaigns were developed for physicians, pharmacists and consumers. The Neurodoron television commercial at the end of 2014
marked the first time we advertised a pharmaceutical product to
a broad public. Since the measures put in place so far are proving
effective, they will be extended.
Visiodoron Malva eye drops were successfully launched in
the D-A-CH-countries, France, Italy and the Benelux countries – an
important addition to the eye range. The drops, specially developed
for tired and irritated eyes, are available in single doses. In future,
they will be available in other European and non-European markets.
We received authorisation for several pharmaceuticals in
various countries in the year under review, for Sinudoron drops
and Weleda cough syrup in Switzerland, for example, Infludoron
in Austria and six homeopathic oral sprays in the UK. In Germany,
subsequent approval was successfully completed for a number of
pharmaceuticals, marking the end of a process which started in
the 1980s. The enormous amount of work this involved was well
worth the effort, with several hundred preparations remaining in
the anthroposophic pharmaceuticals treasure chest. This does not
mean, however, that changes in line with the regulatory framework are now a thing of the past. For example, in Italy, a large
number of old approvals are expiring, meaning that ranges will
The quality we require of all Weleda products
The quality of Weleda products begins with the raw materials
we work with: wherever possible, we use raw materials from
certified organic and biodynamic cultivation as well as from
controlled wild collection. This has enabled us to steadily increase the proportion of plant-based raw materials cultivated organically over the past few years to 83 per cent (see
page 16). In further processing, too, right through to the finished product, we deliberately do not use synthetic fragrances,
colourings or preservatives, nor do we use genetically modified organisms. On top of this, checks along the entire manufacturing chain guarantee that our raw materials and products
are free of pesticides.
Just as important, however, are the manufacturing processes
which maintain the quality of the raw materials, refine them
and transform their substance in order to make them suitable
for human application. This means that our knowledge of the
interplay between natural substances and people is also furthering the understanding of such processes. For example, we
have learned to avoid the use of electricity as far as possible
in all of our heating and mixing processes. In our manufacturing areas, we use mixers which operate using compressed air
and boilers that are heated using steam instead of electricity.
Electromagnetic radiation is measured in our key manufacturing areas and minimised, and is completely screened out in
sensitive areas. Our objective is to expose our pharmaceuticals
to as few external influences as possible.
35
36
Economy
Real characters and genuine people characterised
the “Pass it on” cold campaign. Their charm made it more
convincing and memorable.
0:07 / 0:22
The Neurodoron television commercial was chosen
by Healthcare Marketing magazine as commercial
of the month in January 2015. The campaign began in
November 2014 in Germany and was broadcast
on Swiss television in February 2015. It was a major
success in both countries.
have to be adapted and costly subsequent approvals obtained. Reimbursement is also an issue subject to regular debate at the political level. This could have a negative impact, in France in particular,
where reimbursable Weleda pharmaceuticals play a major role.
Assuring the existence of anthroposophic therapy
We worked intensively on the implementation of our pharmaceuticals strategy in 2014. The strategy is essentially based on the
Weleda range of around 1,100 pharmaceuticals covering the requirements of physicians and patients and defined together with
physicians’ representatives. In a next step, we will be checking, for
each individual country, which part of this range we can make available. The condition is that the specific country ranges should be
self-financing from 2016/17. Through the economic structuring of
Weleda UK launched a range of
homeopathic pharmaceuticals against
a variety of ailments in 2014.
The practical sprays are easy to use,
fast-acting and fit into any bag.
A perfect solution for modern, demand
ing consumers.
Economy
Weleda Cough Elixir, Infludoron globules and Visiodoron Malva eye drops represent Weleda’s cold and eye areas of
competence, for which there were particularly intensive marketing efforts in 2014.
its country ranges over the long term and the intensive dialogue
with the anthroposophic medical community, Weleda makes a substantial contribution to the continued existence of anthroposophic
therapy. It is also against this backdrop that our efforts to keep
patients supplied with the Iscador mistletoe preparation should be
viewed. Following intensive negotiations, Weleda and the Society
for Cancer Research reached a decision to discontinue their
long-standing collaboration on Iscador. By the end of 2015 at the
latest, all authorisations and the brand name Iscador will be transferred to the newly founded Iscador AG, a stock corporation headquartered in Arlesheim, Switzerland. It is majority-owned by notfor-profit organisations (Society for Cancer Research, Arlesheim,
and Gesellschaft für klinische Forschung e.V., Berlin). Iscador AG’s
activities are the manufacture and marketing of Iscador as well as
research and development in the area of anthroposophic oncology.
With the exception of Switzerland, however, Iscador AG will only
gradually be able to take over the relevant operational activities
of Weleda AG due to regulatory requirements and deadlines. During this transitional phase, Iscador AG will work closely with Weleda
to ensure a seamless supply of Iscador for patients.
A further milestone in the development of anthroposophic
therapy was reached in October 2014, when the University of Bern
set up an associate professorship for anthroposophically extended
medicine at its Institute of Complimentary Medicine. The professorship will be funded by Weleda and other partners. In the future,
Prof. Dr Ursula Wolf, who holds the professorship, will advance anthroposophically extended medicine in research and teaching.
Torsten Arncken
Medicinal Plant Researcher, Switzerland
For Weleda, the form of a plant and the substances created by the plant form a
single unit. Any change to its form or structure also changes the substance.
For example, a small green apple is still very hard and tastes sour. When it becomes
bigger and turns red, it tastes sweet and aromatic. So the form can tell you
something about the substance. At the same time, the form is a key for understanding aspects of the interrelationship between a given plant and human beings.
37
38
Ökonomie
Dr Lucie Bauerschaper in Schwäbisch Gmünd knows when there’s
been a really hot summer in Tuscany. After it, she and her team receive letters from customers, informing them of a slight change
in the fragrance of Weleda’s Sea Buckthorn Body Oil. The written
reply sent to such customers informs them, in turn, that a higher
level of sunshine can indeed have an impact on the fragrance and
this is not due to any sort of faulty process. Quite the opposite:
cosmetics made from natural raw materials reflect the rhythms of
nature, which makes them all the more dynamic and beneficial. It
also makes them more vulnerable to supply bottlenecks, however,
or even to minor fluctuations in production. This all serves to make
all the more stringent and exacting the standards applied by the
quality control staff with whom the Head of Quality Assurance,
Natural and Organic Cosmetics and her team work closely together.
As a “Qualified Person”, Dr Lucie Bauerschaper is responsible for the
products that end up on the market, from the quality of the raw
material through each step in production to the accuracy of the expiration dates on packaging and ultimate release. To this end, this
food chemist who obtained her doctorate in molecular biology has
been scrutinising even the tiniest details within the company since
2003. “It’s important for me to understand exactly how everything
is connected. I need to be able to back it completely!”
This is what motivates her, in particular, when it comes to the
development of innovative products. If there is a formulation with
new raw materials, suppliers need to be able to prove that these
materials satisfy Natrue requirements in the same way as all others
do. Weleda is a founding member of this non-profit organisation
for which the requirements of the BDIH, the German association of
industries and trading firms for pharmaceuticals, health care products, food supplements and personal hygiene products, do not go
far enough and which backs legal certification along the lines of the
EU organic certification for foodstuffs. Inter alia, the Natrue label
prohibits animal testing, petroleum-derived products, genetically
modified ingredients and irradiation to extend shelf life. “Although
it’s not possible to prove”, says Bauerschaper, “the efficacy of the
raw materials can only be guaranteed through their purity. Which
is why we want to know their origin and have a number of our own
cultivation projects around the world.”
The difference between natural and organic cosmetics as
Weleda understands them and conventional products is also reflected in the letters received. Customers who switch to Weleda
sometimes describe a feeling of tightness. In such cases, Dr Bauer
schaper recommends that customers start off with a richer night
cream or a mild care product from the almond range: “The skin needs
time to get used to being itself more active again.”
“IT’S IMPORTANT
FOR ME TO UNDERSTAND EXACTLY
HOW EVERY THING
IS CONNEC TED!”
, 41
DR LUCIE BAUERSCHAPER
,
Head of Quality Assurance
tics (Germany)
me
Cos
c
ani
Org
Natural and
Economy
Weleda natural and organic cosmetics: strategy bears fruit
A fully fledged care concept and the needs of users are key for us in the development
of new products. This strategy paid off in 2014, with a number of new products
successfully launched in the markets. Eye-catching, authentic communication helped
secure increased use of the Weleda brand.
Gearing successfully to consumers’ needs
Weleda natural and organic cosmetics witnessed dynamic growth in
almost all markets in 2014. Germany, Austria, France, Japan, Russia
and Brazil, in particular, all posted double-digit growth figures, with
an impressive 46 per cent in Russia and 27 per cent in Brazil. These
five countries form the “power markets” in which, given the level of
market potential involved, the focus of our market activities lies. The
Weleda companies in these countries have priority, which is linked
with higher growth expectations. The success of this strategy can
be seen not only in how sales are developing; the significant jump in
brand recognition, in France for example, is the result of intensive
market cultivation and, at the same time, the basis for the long-term
success of the Weleda brand.
Weleda’s solid development has been supported by a worldwide market for natural and organic cosmetics that is still growing.
This goes hand in hand, however, with increasing competition. Major producers of conventional cosmetics are trying to buy into this
development through near-natural cosmetics and other natural
cosmetics suppliers are seeking to expand at the international level.
More and more retail chains are offering their own brands in the
natural and organic cosmetics segment or the near-natural segment. This reflects the changes in what consumers are looking for.
Expectations of natural and organic cosmetics are becoming increasingly like those of conventional cosmetics in terms of efficacy
or differentiation of the product range. We have our own approach
to this: while they can provide input and impetus, trends are not the
only yardstick for product developments. The key factors in new
products are our own fully fledged care concept and, in particular,
the needs of our customers. With the development of the Evening
Primrose care range launched in 2014, for example, we are responding to the changed needs of women from their mid-fifties on.
Highest quality standards
A visible expression of our stringent quality standards is the Natrue
label which features on all Weleda natural and organic cosmetics.
This label serves as a guide for consumers and helps them distinguish between certified products and conventional and near-natural
cosmetics. Despite these high standards, increasing regulatory requirements on the part of governments and the European Union
are resulting in ever more complex dossiers. In the justified interest
With its Evening Primrose care range, Weleda has introduced a
new lead plant in both facial and body care for the first time.
The seven products specifically meet the needs of mature skin
from the mid-fifties and help it to show its natural radiance.
of protecting consumers, the EU Commission, for example, is considering limiting the use of certain fragrances and, at the same time,
extending disclosure obligations. Our formulations already satisfy
the requirements: Weleda uses only natural essential oils which are
subject to continual analytical and dermatological checks in terms
of their high quality.
Innovation programme bears fruit
Our Evening Primrose care range, consisting of three body care and
three face care products, was just one of many product launches
which took place in 2014. The ability to innovate is one of our stra-
39
40
Economy
tegic pillars, which is why the Executive Board launched an innovation offensive in October 2013. The first successes were not long
in coming, with several countries in Europe introducing the Evening
Primrose care range in 2014. The range fully satisfied expectations
and a large number of customers praised the texture and fragrance
of the products as well as the form and colour of the packaging.
The Evening Primrose Age Revitalising Body Oil received not one,
but two prestigious awards: The “Victoire de la Beauté” in France
and the beauty prize from Swedish magazine Amelia in the body
oil category.
The launch of Baby Derma White Mallow Nappy Change
Cream rounded off the care range for highly sensitive skin introduced in the prior year. Sensitive skin and the need for special care
products is something which is also of interest to adults. For this
reason, we have planned to add to the fragrance-free Almond face
care range, from spring 2015, a lotion, a creamy body wash and a
hand cream for sensitive skin. The introduction of the Men Active
shower gel in 2014 marked an addition to the Weleda range of
shower lotions which was long-awaited by our male customers.
The addition of the Arnica Sports shower gel is also planned from
spring 2015.
Our launch of three nail care pens in Germany, Austria and
Switzerland at the beginning of 2014 marked a new milestone in our
hand and nail care range. The pens will be introduced in further
countries in 2015. The second half of 2015 will see, inter alia, additions to the Evening Primrose care range.
For babies’ sensitive skin: the White
Mallow Nappy Change Cream rounds
off the Baby Derma care range.
For athletes: the light gel texture and
fresh fragrance of Arnica Sports
Shower Gel are refreshing after sport.
For nails: a composition of valuable plant-based
oils and their fine fragrance distinguishes the
Weleda Nail Care Pens.
For mature skin: the Evening Primrose revitalising facial care products have been developed
specially for the needs of skin from the mid-fifties.
For intensive facial care: the Wild Rose Smoothing Pearls
were replaced in early 2015 by the modern glass
ampoules of the seven-day Smoothing Beauty Treatment.
Economy
Communication activities intensified
Weleda has stepped up communication activities to an unprecedented level. We placed a particular focus on outside advertising –
in train stations, at bus stops and other well-frequented areas – and
on television advertising.
Through Weleda oases at book fairs, at city roadshows and
at cultural events as well as at the Baden-Württemberg State
Horticultural Show in Schwäbisch Gmünd with more than two million visitors, we gave many people the opportunity to discover and
experience Weleda. The shop set up at the horticultural show site
literally attracted customers like a magnet.
In 2014, we made even more intensive use of the full range
of the medium of television. Commercials marked the introduction
of the Evening Primrose care range in Germany and Austria. The
same commercial was broadcast in cinemas in Switzerland.
The Internet is continuing to play an increasingly important
role. We completely revamped our Internet presence in many countries and made it more user-friendly. Social media are making direct
exchanges with new groups of consumers possible. In addition,
magazines continue to be a cornerstone of communication with
customers. Indeed, the Weleda magazine Werde, which looks at
various issues relating to sustainable living, enjoys such a strong
readership that we increased publication from twice yearly to four
times a year.
The fragrant soul of plants
For sensitive skin: shower cream, lotion and hand
cream contain precious organic almond oil,
which cares for and soothes skin prone to irritation.
Fragrances are an integral component of our holistic care
concept. This concept combines exclusively high-quality,
natural fragrance ingredients to create compositions which
make the Weleda fragrance landscape unique. Development
is carried out in-house, from the idea through to the finished
product. Fragrance is a key element of the experience offered by a product and represents the user’s direct connection with nature. Human beings have an intrinsic relationship
with natural fragrances, as both come from the same source:
nature. This is why these fragrances are able to touch people
so much more deeply and fundamentally. From the anthro
posophical perspective, plants express their very essence
through their fragrance. This is why, in a natural fragrance
composition, we always experience this fundamental element
of the essence, even if subconsciously. Natural fragrances
can vitalise, soothe, balance, earth, stimulate, calm fears or
brighten the mood. Consequently, we take care to ensure that
the fragrance suits the product involved and makes a har
monious contribution to the care experience.
41
42
Economy
Market development 2014
Germany
Percentages refer to the change in third-party
turnover by company compared to the previous
year (in the relevant local currency).
+7.5 %
Netherlands
– 1.0 %
France
+21.6 %
Sweden
+4.8 %
Russia
+47.7 %
Czech
Republic
+12.3 %
Argentina
+39.8 %
USA
Spain
+5.4 %
– 6.7 %
Italy
+3.0 %
Austria
+7.7 %
UK
+6.2 %
Brazil
+23.7 %
Switzerland
+0.7 %
Chile
+9.3 %
Australia
+15.4 %
New Zealand
+2.3 %
Weleda is present in the following countries:
AMERICA
EUROPE
AFRICA
ASIA
AUSTRALIA
Argentina, Brazil,
Canada, Chile,
Mexico, Peru, USA
Austria, Belgium, Bosnia, Bulgaria,
Croatia, Cyprus, Czech Republic, Denmark,
Estonia, Finland, France, Georgia,
Germany, Greece, Hungary, Iceland, Italy,
Latvia, Lithuania, Luxemburg, Macedonia,
Netherlands, Norway, Poland,
Portugal, Romania, Russia, Sweden,
Switzerland, Serbia, Slovakia, Slovenia,
Spain, UK, Ukraine
Egypt, Morocco
Azerbaijan, Hong Kong, Israel,
Japan, Malaysia, South Korea,
Taiwan, United Arab Emirates
Australia, New Zealand
Economy
Our markets:
developing strategic key areas further
Weleda maintained its focus on strong-growth markets in 2014. The competence area
strategy was successfully implemented in pharmaceuticals. In natural and
organic cosmetics, the focus was on innovation with the Evening Primrose care range.
After two years of consolidation, in 2014 the focus was on continu
ing strategic work in the Weleda countries, building on the achievements already in place and developing successes further. With regard
to market cultivation, this means concentrating our activities on
markets which are indicating favourable conditions for steady
growth. Alongside Germany, Switzerland and France, this applies
in particular to Italy, Brazil, Japan and Russia. Find out more in the
three selected country portraits on the following pages.
(page 41), we launched the Evening Primrose product line first in
Germany, Switzerland, Austria, Italy, France and Sweden. The new
care range is aimed in particular at women from their mid-fifties.
Weleda remained true to its independent quality concept in the
development of the range. This began with Goethean research on
evening primrose, followed by the development of plant extracts,
a comprehensive analysis and the highest standards applied to
sourcing raw materials.
Competence areas and innovations
Making the brand tangible
In pharmaceuticals, the focus remains on OTC products in selected
areas of competence. A strategy that paid off in the country markets in 2014 too: sales developed positively in the focus categories
eyes, colds, and stress and sleep, supported by comprehensive
communication methods (page 35). We worked in close cooperation with physicians and pharmacists in all markets, with particular
success in France (page 45). Products for targeting stress did particularly well in Brazil, the biggest market in South America. The
issue at hand now is to rigorously continue work on the ranges in
the target markets, which will include work on additional products.
The natural and organic cosmetics product segment was
marked by one innovation in particular in 2014. Supported by
comprehensive communication in the media and at points of sale
In 2015, we will continue to concentrate our activities on developing what has already been achieved, moving ahead with innovations
and strengthening the Weleda brand in an increasingly difficult
competitive environment. We are convinced that there is further
potential to be tapped in positioning, marketing and communications. This gives us the opportunity to make the uniqueness of the
Weleda messages and products understandable and tangible for
consumers and partners all around the world.
Karen Staudt
Consumer, USA
I discovered Weleda at the end of the 1990s through the Waldorf School
in Garden City, New York. From Arnica Massage Oil to Salt Toothpaste,
and everything in between, it’s definitely been an adventure exploring the
many products Weleda has to offer to complement and support my
healthy lifestyle.
43
44
Economy
Weleda Brazil: significant change in a growth market
Two hundred million people live in Brazil, the biggest country in South America. In a
market environment shaped by strong competitive pressures, we were able to put
in place important success factors for the future. One of the things achieved was the
reorganisation of the entire production for extemporaneous pharmaceuticals.
to substantial fluctuations, leading to dissatisfaction on the part of
market partners. The highly regulated environment with an ever-increasing number of approval conditions from the health surveillance
agency Anvisa posed a further challenge. Over the past few years,
we have made substantial investments in procurement logistics,
production processes and in quality assurance and control in line
with international standards. This allowed supply availability for raw
materials to be significantly improved. Positive feedback from the
medical community affirms this development. Today, Weleda in Brazil has good contact with a growing community of physicians and
pharmacists who appreciate Weleda’s quality and the diversity of
therapeutic options. Our central focus is to continually improve the
service provided to these partners.
Weleda pharmacy – flagship store Santo Amaro
in São Paulo, right next to the building of the
anthroposophical society.
Production of extemporaneous pharmaceuticals in Brazil
Positive development in the year under review
Following new regulatory requirements, in 2014 Weleda Brazil
faced the task of demonstrating that it satisfies quality requirements, also in respect of raw materials production, in line with Good
Manufacturing Practice. This meant that intensive analysis and
reorganisational efforts were required. These efforts paid off, and
the health authorities carried out their inspection without any
negative findings. Indeed, the opposite was true, with Anvisa praising the documentation system put in place by Weleda Brazil for
medicinal plant quality analysis. It said this system was unique and
set a new standard. We were equally successful in completing the
development and implementation of an end-to-end quality assurance system for extemporaneous pharmaceutical production at
Weleda’s own two pharmacies and 12 franchise pharmacies. The
inauguration of the newly formatted Santo Amaro pharmacy in São
Paulo was a further milestone in April 2014. At the same time, this
marked the start of the implementation of the new shop design in
line with which all Weleda pharmacies will be reformatted in 2015.
Almost 70 per cent of Weleda’s turnover in the growth market Brazil comes from pharmaceuticals. A high proportion of this comes, in
turn, from extemporaneous pharmaceutical products, i.e., pharmaceuticals produced to order following an individual prescription from
a doctor, in 14 Weleda pharmacies. For this, we offer around 200
natural raw materials of plant, mineral or metal origin. This broad
range makes it possible to ensure a high and individual level of therapeutic diversity in accordance with Weleda’s high standard of quality throughout the world. The certified, biodynamically cultivated
Weleda medicinal plant garden is located at the São Roque site near
São Paulo. This is where around 50 different types of plants are Making Weleda quality visible and tangible
cultivated and then processed in pharmaceuticals production in São This is our goal in the biggest market in South America. In the year
Paulo. Weleda Brazil imports the other raw materials it needs from under review, Weleda Brazil already made further investments in
Schwäbisch Gmünd in Germany.
marketing and in the broad distribution of pharmaceuticals and
natural and organic cosmetics, in large pharmacy chains, for examThe challenge posed by supply logistics
ple. These efforts will continue in the future. At the same time,
In the past, supply availability for raw materials and the OTC phar- Weleda will work even more intensively with the medical commumaceuticals produced locally on an industrial basis has been subject nity in Brazil and extend the product training offering.
Economy
Weleda France: well on track
Today, Weleda France is the most successful associated company. 2014 was a key year
in which the Régate 2020 strategy for the future paid off. Double-digit growth in
income, a profitable pharmaceuticals business and diverse communication measures
rounded off the picture.
Régate 2020
Competition for patients and product users is intensifying. The
Régate 2020 strategy has set the course: as a symbol and a project
that looks to the future, it has defined comprehensive objectives
and measures in the areas of identity, location organisation, work
on ranges, marketing and communication. The results show that
Weleda France is a formidable contender. The 2014 financial year
was the company’s best to date.
Over 100,000 people follow the news from Weleda France on Facebook. And the “Bioty Tour” which started in 2014, is allowing consumers throughout the country to experience Weleda “up close
and personal”, with luxurious hand and face massages.
Focus on future growth
The key objectives for 2015 are securing a further increase in the
presence of the Weleda brand, expanding marketing and sales and
increasing the number of points of sale. In addition, we will carry
Ground-breaking work on range
out more modernisation work on the production facilities in
One of the priorities in France, too, was securing a further improve- Huningue and extend the offering of tours and product training for
ment in the profitability of the pharmaceuticals business. To this doctors and midwives.
end, we worked closely with the representatives of the anthroposophic medical community. In one process, the pharmaceuticals
range was reduced from 2,000 to around 1,300 pharmaceuticals
while retaining full therapeutic diversity. The results speak for
themselves: after losses in previous years, Weleda France secured
an exemplary result with growth in pharmaceuticals in the high
double digits.
Shift in natural and organic cosmetics production
With Group-wide consolidation of natural and organic cosmetics
production, the gradual shift in production from Huningue in France
to Schwäbisch Gmünd in Germany and Arlesheim in Switzerland
began in 2012. Weleda France was thus faced with substantial economic and social challenges, challenges which it has mastered in
an exceptional fashion. Good solutions were found for all employees whose jobs were affected. The team in France ended the year
under review with a double-digit increase in income in natural and
organic cosmetics. This has enabled Weleda to significantly increase its market share.
Dynamic communication
A number of internal and external communication measures were
implemented in 2014. The executive management of Weleda
France personally presented the future strategy to the departments, supported by a specially developed motivational film. An
e-mail newsletter produced every two weeks keeps staff up to date
on the departments’ developments and successes. The investment
in dynamic communication is paying off: an anonymous survey
showed that there has been a sharp rise in employee satisfaction.
The Régate 2020 strategy for the future was developed by
a team of 25 employees. The executive management
presented the objectives and measures involved to the
departments personally in 2014.
45
46
Economy
Weleda Russia: more than natural cosmetics
This is Weleda’s message in the Russian market. A promise that is gaining recognition, as
consumers appreciate the high quality of the products as much as the anthroposophical
background. Weleda Russia continued resolutely along its successful growth track in 2014
and the young team is continuing to work ever more closely together.
tion. And we were successful: in addition to the locations in Moscow and St. Petersburg, there are now Weleda products at 400 new
points of sale. Weleda sales representatives are now present locally in four regions of Russia. Training courses for sales staff
helped boost sales, as did sales campaigns.
Intensive communication and a high level of recognition
There were many different meetings and events with consumers
and media representatives in 2014. Consumer promotions, such as
in large shopping centres for example, gave users the opportunity
to experience Weleda up close. The enthusiastic feedback showed
that users appreciate both the quality of the products as well as
Russian magazine InStyle awarded Weleda Pomegranate Regenerating
the idea behind Weleda. As in previous years, we invited Russian
Body Oil “Bestbeautybuys 2014”.
journalists to Schwäbisch Gmünd to enable them to experience
Weleda culture and the product universe directly. In addition to
tours of the medicinal plant garden and production, the journalists
received in-depth information on the use of natural and organic
Attractive market
The team in Russia got 2014 off to an enthusiastic start, achieving cosmetics.
With 48 per cent growth in turnover on a currency-adjusted
double-digit growth as in the previous years, despite increased
competition from both domestic and foreign companies. Weleda is basis, Weleda Russia had a successful end to the year. Growth
an established quality brand in Russia, with sales centres in Mos- momentum in the pharmacy channel remains above the market
cow and St. Petersburg and well-functioning distribution channels average. A result that motivates us to continue along the same
in pharmacies, premium supermarkets, perfume stores and organic track in 2015.
shops. In a business environment marked by openness, we developed a confident growth strategy for the coming years.
Bringing Weleda culture to life
A key focus in the year under review was to anchor Weleda’s values
and management principles even more firmly within the organi
sation. The aim was to develop within the new team a culture of
cooperation both internally and externally, with this culture going
beyond mere performance and results. Each month, the 30 employees attended training courses which developed the important
themes of trust and responsibility. The positive feedback received
shows that, together, the team is well on its way.
Market presence extended
The change in the political atmosphere in winter 2014 raised some
issues. Consumer behaviour was just as difficult to anticipate as
currency stability and import legislation. Despite this, we decided
to stick rigorously with our chosen strategy and expand distribu-
Product stand in a Moscow shopping centre.
Financial report
Third-party turnover of national companies
Third-party turnover
per company
Currency
Structure of third-party turnover
per company
Employees (FTE)
2014
Change from
previous year in
local currency
Pharmaceuticals
Natural
and organic
cosmetics
2014
2013
+0.7%
43%
57%
302
285
Switzerland
in 1,000 CHF
42,593
Weleda AG, Arlesheim
in 1,000 EUR
35,066
Germany
in 1,000 EUR
164,154
+7.5%
24%
76%
768
704
in 1,000 EUR
72,323
+21.6%
46%
54%
333
330
in 1,000 EUR
15,128
–1.0%
17%
83%
68
71
United Kingdom
in 1,000 GBP
6,126
+6.2%
30%
70%
57
61
Weleda UK Ltd, Ilkeston
in 1,000 EUR
7,600
Italy
in 1,000 EUR
11,286
+3.0%
43%
57%
35
35
in 1,000 EUR
13,179
+7.7%
16%
84%
18
19
Sweden
in 1,000 SEK
65,036
+4.8%
12%
88%
21
26
Weleda AB, Stockholm
in 1,000 EUR
7,149
Spain
in 1,000 EUR
6,110
+5.4%
7%
93%
43
40
Czech Republic
in 1,000 CZK
42,934
+12.3%
2%
98%
16
17
Weleda spol. s.r.o., Prague
in 1,000 EUR
1,559
Russia
in 1,000 RUB
140,298
+47.7%
4%
96%
29
20
Weleda East GmbH, Moscow
in 1,000 EUR
2,789
USA (North America)
in 1,000 USD
15,685
–6.7%
7%
93%
26
32
Weleda Inc., Irvington, NY
in 1,000 EUR
11,819
Argentina
in 1,000 ARS
21,849
+39.8%
54%
46%
44
39
Weleda S.A. Argentina, Buenos Aires
in 1,000 EUR
2,034
Brazil
in 1,000 BRL
24,659
+23.7%
68%
32%
129
91
Weleda do Brasil Ltda., São Paulo
in 1,000 EUR
7,906
Chile
in 1,000 CLP
1,721,484
+9.3%
44%
56%
40
36
Weleda Ltda., Santiago de Chile
in 1,000 EUR
2,267
New Zealand
in 1,000 NZD
3,774
+2.3%
61%
39%
25
26
Weleda (NZ) Ltd, Havelock North
in 1,000 EUR
2,359
Australia
in 1,000 AUD
2,298
+15.4%
16%
84%
11
9
Weleda Australia Pty Ltd., Warriewood
in 1,000 EUR
1,561
0
40
1,965
1,881
Weleda AG, Schwäbisch Gmünd
France
Weleda S.A., Huningue
Netherlands
Weleda Benelux SE, Zoetermeer
Weleda Italia S.r.l., Milan
Austria
Weleda Ges.m.b.H. & Co. KG, Vienna
Weleda S.A.U., Madrid
Weleda Naturals
Weleda Naturals GmbH, Schwäbisch Gmünd
Total
in 1,000 EUR
364,289
+8,2 %
30 %
70 %
47
48
Ökonomie
“SUBCONSCIOUSLY,
EVERYBODY CAN
TELL IF A FRAGRANCE
IS GENUINE OR NOT.”
DR LEO ZÄNGERLE, 52
Head of the Weleda Fragrance Competence Centre in Arlesheim (Switzerland)
Ten years ago, Leandro, Alex, Alice and their colleagues scored a
major success. At the time, they caught a supplier who was trying
to pass off cheap, merely nature-identical rosemary oil as “100 per
cent pure and natural”. They managed to prove to the supplier in
detail that he had made a small quantity of genuine oil go further
by adding synthetic compounds. The seller was blocked and there
have been no such major attempts at fraud since then. “Suppliers
know now who they are dealing with”, says Dr Leo Zängerle, Head
of the Weleda Fragrance Competence Centre in Arlesheim (Switzer
land). He is proud of the highly specialised gas chromatography
mass spectrometers, all of which have their own name. After all,
they work closely together.
In a fraction of a second, a fragrance will determine whether
someone perceives a product as being harmonious and good for
them. “The olfactory nerve that comes into contact with the air
you breathe in the mucous membrane of the nose is a bulb where
fragrance molecules ‘dock’ directly”, explains Zängerle, who has
been with Weleda for 15 years and whose doctorate focused on
nerve cell communication. “Subconsciously, everybody can tell if a
fragrance is genuine or not.” And since, according to anthroposo
phical thinking, the fragrance of a plant is the expression of the
spirituality of nature, pure essential oils are capable of touching
the soul of a person very deeply. In order to guarantee this purity,
a very precise physico-chemical analysis is carried out for all fragrance ingredients and then compared with the goods ultimately
delivered, a very involved and time-consuming procedure which
sets Weleda apart from most of its competitors. In addition, all
fragrances for cosmetic products are developed in the Fragrance
Competence Centre, which was founded eight years ago. They
not only smell good, but are also composed on the basis of aromatherapeutic aspects. Ultimately, the aim of each of the Weleda
care ranges is to support people in specific situations, as do the
Evening Primrose products for women from age 55, for example,
which were launched in 2014. Since evening primrose essential oil
“can’t be bought”, Weleda’s two internal perfumers and their team
were inspired to create their own interpretation. This unique new
fragrance includes, inter alia, cardamom oil for freshness and magnolia leaf oil, a novelty, with its leafy green notes that open the
heart and clear the mind at the same time. The most complex of
Weleda’s fragrances to date, it reflects its target group’s rich diversity of experience and, with its powerful accents, stimulates sensory perception. The fragrance may even have an effect via the
skin: last year, scientists discovered receptors in the outer layer
similar to those found in the nose.
Financial report
General economic development in 2014
and forecast for 2015
cent (2013: increase of 4.2 per cent). The D-A-CH region recorded
Business performance
The 2014 financial year was marked by further solid growth, the 8.5 per cent growth in turnover. The launch of the Evening Primexpansion of marketing activities and increased innovation. Cou- rose care range as well as the shower gel for men contributed
pled with continued healthy discipline on costs, both the result for substantially to this result.
the year and cash flow were once again extremely positive at Group
level in 2014. There was a further significant reduction in net debt, Operating result
enabling Weleda to continue to enhance its independence. The The operating result (EBIT) increased by EUR 1.1 million year-
solid basis created over recent years means that the company can on-year to EUR 35.1 million (2013: EUR 34.0 million). The EBIT marlook to a future it can shape with confidence.
gin contracted marginally to 9.6 per cent (2013: 10.1 per cent). At
79 per cent (2013: 78 per cent), the gross profit margin increased
Turnover
slightly. Operating expenses increased by 10.1 per cent or EUR 23.9
The Weleda Group posted turnover of EUR 364.3 million in the 2014 million year-on-year to EUR 259.5 million, due primarily to higher
financial year, up from EUR 336.7 million in the prior year. This rep- material costs in connection with the marketing and innovation
resents growth of approximately 8.2 per cent, or EUR 27.6 million, offensive, as well as the 13.0 per cent rise in employee income to
compared with the prior-year figure (adjusted for exchange rates: EUR 132.1 million.
8.6 per cent or EUR 29.0 million), and means that the targeted
growth in turnover was comfortably achieved.
Result for the year
The result before tax increased by EUR 8.7 million to EUR 22.3 milTurnover development by market and region
lion (2013: EUR 13.6 million). The financial result improved by EUR
Approximately 55 per cent of sales revenues (2013: 57 per cent) 0.5 million to EUR –4.9 million (2013: EUR –5.4 million). Improved
were generated in the D-A-CH region (Germany, Austria and Swit- business performance and different profit distribution within the
zerland). Turnover in this region increased by 6.0 per cent to EUR Group led to an increase in income taxes to EUR 12.6 million (2013:
202.0 million (2013: EUR 190.5 million). In the other regions, sales EUR 8.9 million). At EUR 6.7 million, Germany accounted for the
revenues registered an overall increase of 11.0 per cent to EUR biggest share of income taxes. At EUR 9.8 million, the consolidated
162.3 million (2013: EUR 146.2 million), with the main share of this result for the year was thus twice as high as the prior year.
increase achieved in Western Europe.
Financial and assets situation
Turnover development in the business segments
Natural and organic cosmetics accounted for 69.7 per cent of global
turnover (2013: 70.2 per cent). The share of pharmaceuticals increased marginally to 30.3 per cent (2013: 29.8 per cent).
Global turnover in pharmaceuticals developed positively
and was up 9.9 per cent (2013: 5.0 per cent) to EUR 110.3 million.
In the D-A-CH region, which accounts for around 50 per cent of
turnover, figures were at the prior-year level. This was due, in particular, to a poor cold season at the beginning of 2014. The Western Europe region recorded a clear 32.6 per cent increase in turnover, primarily through increases in the French market.
Global turnover in natural and organic cosmetics was significantly up on the prior year, with an overall increase of 7.5 per
Cash flow from operating activities increased by EUR 11.6 million
to EUR 48.1 million (2013: EUR 36.5 million). Cash flow from investing activities increased by EUR 5.1 million year-on-year to EUR 6.6
million (2013: EUR 1.5 million). Of the gross investments of EUR 7.1
million, EUR 1.3 million were in intangible assets, EUR 5.4 million in
property, plant and equipment, and EUR 0.4 million in financial assets. Almost 50 per cent of investments were in the two main
production sites in Schwäbisch Gmünd and Arlesheim.
Given the continued improvement in results and the higher
level of investment activity, cash flow after investing activities
amounted to EUR 41.5 million (2013: EUR 35.0 million).
Financial liabilities were reduced by EUR 17.9 million to EUR
52.3 million (2013: EUR 70.2 million). Cash and cash equivalents,
49
50
Financial report
including securities, rose by EUR 22.0 million as at year end to EUR
43.2 million. Net debt fell by EUR 39.9 million to EUR 9.1 million
(2013: EUR 49.0 million). The equity ratio contracted slightly by 0.2
percentage points to 33.4 per cent (2013: 33.6 per cent).
regard to pharmaceuticals, we expect turnover to dip in Switzerland following the discontinuation of turnover from Iscador. In light
of this, the target is growth in overall turnover of around 3 per cent
versus 2014, alongside a stable operating result.
Forecast 2015
Given the current market situation, the innovations planned and
the market presence of Weleda, we continue to see good growth
opportunities in Germany, Austria, France, Japan, Brazil and Russia.
We expect lower growth on average in the other countries. With
Joyce Jonathan
Singer, France
Weleda is an experience like a natural sensation, like a sweet medicine. When I
use these completely natural products, I know I am respecting nature in the same
way I respect myself. They accompany me in my daily routine, and they help
me feel better in my private and professional life. A little cream before I go to
sleep, and in the morning I wake up with a sense of physical and spiritual
well-being.
Financial report
Turnover at exchange rates valid on
closing date of financial statements
Turnover adjusted for changes in
exchange rates
Investments in intangible assets
and property, plant and equipment
All values in million EUR
2014
364.3 +8.2%
2014
+4.4%
2013
336.7
2013
322.5
364.3 +8.6%
2014
+5.4%
2013
335.3
318.1
+4.9%
2012
+3.8%
2012
2011
307.5
–0.3%
2011
306.5
–0.2%
2011
2010
308.3
+11.1%
2010
307.1
+11.1%
2010
2012
Change from the previous year
At exchange rates valid on December 31st 2014
Change from the previous year adjusted for changes
in exchange rates
Consolidated result attributable to
shareholders of Weleda AG
6.9
4.1
8.6
18.9
16.5
2014
2013
2012
10.6
2011 1.3
2010
35.1
2014
34.0
2013
4.2
0.8
2012
2011
9.1
9.3
2010
–8.3
–3.8
Market output Weleda Group 2014 by region (in million EUR )
Natural and organic cosmetics and pharmaceuticals
Weleda Group 2014
Total EUR 364.3 million
Total EUR 364.3 million
Western Europe
France, UK, Benelux
95.5 +16.1% *
Weleda natural and
organic cosmetics
69.7%
Weleda
pharmaceuticals
Northern, Central and Eastern Europe
Sweden, Russia, Czech Republic
16.6 +12.0%*
North America
11.8 – 6.7%*
30.3%
D-A-CH
South America,
Italy, Spain
29.6 +11.0% *
Germany, Austria, Switzerland
202.0 +5.8% *
* Change from the previous year adjusted for changes in exchange rates
Asia/Pacific
8.8 +10.8% *
51
52
“IT’S A REAL
HONOUR TO BE
ABLE TO PL AY
A PART IN THIS!”
PIERRE KAPPLER, 52
Head of Medicinal Plant Cul
tivation in
Bruderholz near Arlesheim
(Switzerland)
and Huningue (France) as we
ll as of
the Weleda show garden in
Arlesheim
The citrus thyme is covered by a layer of frost. Only a few snowdrops have so far braved the February sun; otherwise, the Weleda
show garden in Arlesheim near Basel appears to be still deep in its
winter slumber. However, when Pierre Kappler takes a look around
him, there’s only one thing he sees: “Work!” Only two weeks left,
then things will be really hotting up for the head gardener and
his five-strong team here and in the two medicinal plant gardens
in nearby Bruderholz and in Bouxwiller 25 kilometres away in
France, with pruning and the first harvest (greater burdock for
Venadoron), followed by sowing in the greenhouse. The calendula
seeds are bedded directly in March; the primroses can be picked in
April; the perennials are sown in May. Harvest follows harvest: in
August, ferns, through to cherry laurel leaves, hawthorn and pumpkin fruits in October. And from end of February, when the frost is
softening, to November, when it returns, the team’s energies are
focussed on one thing and one thing only: rigorous garden maintenance. “If we act early enough to make sure our cultures are
free of weeds”, says Pierre Kappler, “then we have less weeding
that needs to be done.”
The 52-year-old learned to love plants as a child, as his parents owned a nursery in Alsace. And it is from there, in his “wild
oasis”, that this sporty French-Swiss makes the 45-minute journey
by bike to Arlesheim every day. Pierre Kappler obtained his theoretical knowledge of biodynamic agriculture from an intensive course
of study at the Goetheanum in Dornach. His practical knowledge
has been built up through his work “on the ground” at the two medicinal plant gardens. “When I’m all alone in the gardens in the early
morning and the sun is coming up, the connection plants have to
the ground and to light becomes obvious.” Sometimes, when he is
mixing a biodynamic preparation of horn manure and horn silica, he
might see a weasel, or a deer or a fox. Kappler has noticed that biodynamic preparations improve the resilience of the plants and soil
fertility – the healthier it is, the better the plants and, as a result,
their actives thrive. “If we work in a way that is harmonious with
nature, then the treatments and natural and organic cosmetics are
also harmonious with people”, says Kappler. “It’s a real honour to be
able to play a part in this.” And to let things take their course in winter: “People always think nothing happens in winter, but these are
the months when the ground is at its most active. Microorganisms
and fungi transform dead plant material into nutrients that will be
made available to the plants for new growth.” This is also true of
the mandrake roots planted in 2013. A few more years are needed
before harvesting can begin. Years in which it is primarily the ground
which does all the work.
53
Consolidated Annual
Financial Report 2014
Weleda Group
Table of contents
Balance sheet of the Weleda Group
Page 54
Income statement of the Weleda Group
Page 55
Cash flow statement of the Weleda Group
Page 56
Consolidated statement of shareholders’ equity of the Weleda Group
Page 57
Notes to the consolidated financial statements of the Weleda Group
Page 58
Report of the statutory auditor
Page 72
Auditors and Group Auditors
PricewaterhouseCoopers Ltd, Münchenstein, Switzerland
Contact person for shareholders
Paul Mackay, Chairman of the Board of Directors
Corporate headquarters
Weleda AG
Dychweg 14, 4144 Arlesheim, Switzerland
Tel. +41 61 705 21 21, www.weleda.com, www.weleda.ch
Secretariat and share register
Sabine Lexen
Tel. +41 61 705 22 02
Subsidiary in Germany
Weleda AG
Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany
Tel. +49 7171 91 90, www.weleda.de
54
Consolidated annual financial report of the Weleda Group
Balance sheet of the Weleda Group
Assets
Notes
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
Non-current assets
Intangible assets
1
5,237
5,993
Property, plant and equipment
1
70,247
78,923
Financial assets
1
Total non-current assets
2,856
2,866
78,340
87,782
Current assets
Inventories
2
77,393
68,678
Trade receivables
3
58,249
52,924
Other current receivables
4
5,276
3,584
2,676
2,903
Deferred charges and prepaid expenses
Marketable securities
155
125
43,079
21,081
Total current assets
186,828
149,295
Total assets
265,168
237,077
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
3,800
Cash and cash equivalents
Shareholders’ equity and liabilities
Notes
Share capital
3,800
Non-voting share capital
7,600
7,600
Capital reserves
9,600
9,600
Retained earnings
64,964
55,366
Shareholders’ equity excl. non-controlling interests
85,964
76,366
Non-controlling interests
Shareholders’ equity incl. non-controlling interests
2,525
3,360
88,489
79,726
Current liabilities
Trade payables
5
Current financial liabilities
25,929
21,525
14,261
10,608
Other current liabilities
6
11,705
8,989
Current provisions
7
9,065
19,333
Accrued charges and deferred income
19,670
2,813
Total current liabilities
80,630
63,268
59,625
Non-current liabilities
Non-current financial liabilities
8
38,044
Non-current provisions
7
58,005
34,458
96,049
94,083
Total liabilities
176,679
157,351
Total shareholders’ equity and liabilities
265,168
237,077
Total non-current liabilities
Income statement of the Weleda Group
Notes
2014
in 1,000 EUR
2013
in 1,000 EUR
9
364,289
336,700
3,540
1,414
367,829
338,114
–79,703
–75,564
288,126
262,550
10
6,460
7,047
Employee income and social expenditure
11
–132,142
–116,916
Depreciation and amortisation on non-current assets
12
–9,921
–18,489
Other operating expenses
13
–117,403
–100,209
–259,466
–235,614
35,120
33,983
–4,891
–5,413
30,229
28,570
–7,901
–15,000
22,328
13,570
Net sales
Changes in inventories of finished goods
and work in progress
Total sales
Cost of goods sold
Gross profit
Other income
Total operating expenditure
Financial result
14
Ordinary result before tax
Extraordinary result
15
Result before tax (EBT)
Income taxes
–12,566
–8,898
9,762
4,672
Attributable to shareholders of Weleda AG
9,293
4,187
469
485
Attributable to non-controlling interests
16
55
56
Cash flow statement of the Weleda Group
2014
in 1,000 EUR
9,762
4,672
Depreciation and amortisation and value adjustments on non-current assets
9,926
19,643
12,414
17,556
Changes in provisions
Gain/loss from the disposal of non-current assets
93
–1,828
Changes in trade receivables
–5,243
–8,977
Changes in inventories
–8,382
–732
Changes in other receivables and deferred charges/prepaid expenses
–1,169
453
Changes in trade payables
4,352
3,872
19,544
268
6,195
726
Changes in other current liabilities and accrued charges/deferred income
Other items not affecting liquidity
Currency and valuation influences not affecting liquidity
694
957
Gain/loss from associated companies
–102
–111
Cash flow from operating activities
48,084
36,499
Investments in property, plant and equipment
–5,426
–3,408
Divestments of property, plant and equipment
82
3,455
Investments in financial assets
–422
–1,053
Divestments of financial assets
414
237
Investments in intangible assets
–1,245
–741
Cash flow from investing activities
–6,597
–1,510
–601
0
Dividend payments to shareholders/non-controlling interests
Net repayment of current financial liabilities
Net repayment of non-current financial liabilities
Change in own shares and non-voting shares
–10,144
–6,971
–8,581
–18,915
–236
–56
–19,562
–25,942
Total cash flow
21,925
9,047
Cash and cash equivalents at start of reporting period1
21,206
12,490
Total cash flow
21,925
9,047
Cash flow from financing activities
Currency translation effect on cash and cash equivalents1
Cash and cash equivalents at end of period1
1
2013
in 1,000 EUR
Includes securities
103
–331
43,234
21,206
Consolidated statement of shareholders’
equity of the Weleda Group
as at December 31st
Consolidated statement
of shareholders’ equity
in 1,000 EUR
Shareholders’ equity as at
January 1st 2013
Company
capital1
Capital
reserves
(agio)
Cumulated
currency
difference2
Other
retained
earnings
Total
retained
earnings
Total excl.
noncontrolling
interests
Noncontrolling
interests
Total incl.
noncontrolling
interests
11,400
9,600
–485
53,077
52,592
73,592
3,028
76,620
Loss/profit for the year
Currency translation effect/Other
Shareholders' equity as at
December 31st 2013
11,400
9,600
4,187
4,187
4,187
485
4,672
–1,473
60
–1,413
–1,413
–153
–1,566
–1,958
57,324
55,366
76,366
3,360
79,726
9,293
9,293
9,293
469
9,762
–573
–573
–573
–28
–601
331
547
878
878
–1,276
–398
–1,627
66,591
64,964
85,964
2,525
88,489
Dividends
Currency translation effect/Other3
Shareholders' equity as at
December 31st 2014
1
11,400
9,600
ompany capital is broken down as follows:
C
6,880 registered shares at CHF 112.50
3,478 registered shares at CHF 1,000.00
19,000 registered non-voting shares at CHF 500.00
There was no change in the company capital versus the prior year.
2
Includes reserve for own shares
3
ther retained earnings includes, under Other, modification to value adjustments in France
O
as well as goodwill/badwill on the buyout of non-controlling interests.
57
58
Notes to the consolidated financial
statements of the Weleda Group
Consolidation principles
General remarks
Uniform accounting standards (Weleda Accounting Manual) were introduced as of January 1st 2014. These accounting standards satisfy the requirements of the Swiss Code of Obligations (CO). The financial statements have been prepared in accordance with these
standards. The previous year has not been restated. The adjustments of balance sheet items necessary as at January 1st 2014 have
been booked through the extraordinary result (see Notes to the balance sheet and the income statement, section 15). Restatement
in line with the new accounting legislation is scheduled for January 1st 2015.
The consolidated financial statements of the Weleda Group comply with the law and the articles of incorporation. Certain
items of the balance sheet as well as the income statement have been summarised in order to provide the reader with a better overview. These items are explained in detail in the Notes.
Consistency
The introduction of the Weleda Accounting Manual means that accounting consistency is no longer ensured. The impact on the
income statement is reflected in the extraordinary result. The introduction of the Weleda Accounting Manual has also led to the
reclassification of individual positions in the balance sheet.
Scope of consolidation
In addition to Weleda AG Arlesheim and its branch office Weleda AG Schwäbisch Gmünd, 19 subsidiaries were fully consolidated
within the Weleda Group statements. These companies are, without exception, related to each other and are under the control of
Weleda AG Arlesheim. Weleda AG has direct or indirect holdings of more than 50 per cent. The non-controlling interest in Japan was
consolidated using the equity method.
Consolidation method
The consolidated financial statements were based on the annual statements of the Group companies as at December 31st 2014,
which were prepared in accordance with the Weleda Accounting Manual. The consolidation time period was the calendar year. Capital
consolidation was carried out in accordance with the Anglo-Saxon purchase method. For the fully consolidated companies, assets,
liabilities, expenses and income have been stated at 100 per cent. Non-controlling interests in consolidated shareholders’ equity and
profit/loss for the year have been disclosed separately.
The carrying amounts of equity holdings of the parent company were offset against the available shareholders’ equity
values of the subsidiary companies. In accordance with the full consolidation method, assets and liabilities as well as expenses
and income also of those companies in which a third party is involved were included in full in the Group accounts. Third parties’
shares of shareholders’ equity and of the final results of consolidated companies have been disclosed separately.
Currency translation
The financial statements of consolidated companies in foreign currencies have been translated as follows: current assets, non-current
assets and liabilities translated at year-end rates (rate on balance sheet date); shareholders’ equity at historical rates. The income
statement and the cash flow statement have been translated using average rates for the year. The following currency exchange rates
have been applied:
2014
rates on balance
sheet date
2014
average rates
1 CHF (Swiss franc)
0.832
0.823
0.816
0.812
1 USD (US dollar)
0.826
0.754
0.726
0.753
Year-end rates in EUR
1 GBP (pound sterling)
100 SEK (Swedish krona)
1 BRL (Brazilian real)
2013
rates on balance
sheet date
2013
average rates
1.289
1.241
1.202
1.178
10.557
10.993
11.299
11.563
0.311
0.321
0.308
0.350
Intragroup transactions, balances and intercompany profits
All intragroup transactions and balances were eliminated, as were all intercompany profits stated in the balance sheet.
Balance sheet and valuation principles
In general, assets and liabilities have been valued on an individual basis in so far as they are material and cannot be treated together
as a group as is customary due to their similarity.
Realisation of turnover
Sales were recognised on the transfer of risks and benefits to customers or upon provision of the service. This generally corresponded
to delivery of the products.
59
60
Non-current assets
Acquired intangible assets were calculated at the cost of acquisition, less amortisation. Property, plant and equipment were recognised at acquisition or production cost minus depreciation. Small-value intangible assets and property, plant and equipment with a
value of less than EUR 1,000 were depreciated in full in the year they were added.
Financial assets were included at the cost of acquisition. Equity holdings have been consolidated using the equity method.
Where there have been indications of non-current assets being overvalued, carrying values have been reviewed and, where necessary,
adjusted.
Current assets
Receivables and other non-current asset items were reported at their nominal values. General risk of loss and individual credit risk
have been accounted for on the basis of specific charges. The valuation of inventories was conducted on the basis of acquisition or
production cost while observing the principle of lower of cost or market.
Liabilities
Liabilities were included on the basis of nominal value. Provisions for pension plans and similar obligations have been calculated
based on actuarial principles. The remaining provisions covered all recognisable risks for undetermined obligations. Provisions were
included at the respective amount at which they are to be repaid.
Leasing transactions
Leasing and rental contracts were recognised on the basis of legal ownership. Accordingly, expenses as lessee were recognised on
an accrual basis, whereas the leased or rented objects themselves have not been recognised. Long-term rental and leasing obligations
have been included in the Notes.
Notes to the balance sheet and the income statement
1 Non-current assets
in 1,000 EUR
as at January 1st 2013
Intangible
assets
Property, plant
and equipment
Financial assets
Total
Non-current
assets
7,250
94,235
4,640
106,125
Currency translation effect
–13
–1,161
–207
–1,381
Additions
741
3,555
1,163
5,459
Disposals
0
–1,857
–242
–2,099
Change in scope of consolidation
0
655
–1,334
–679
Reclassification
0
0
0
0
Depreciation and amortisation and value adjustments
–1,985
–16,504
–1,154
–19,643
as at December 31st 2013
5,993
78,923
2,866
87,782
20
730
3
753
Additions
1,281
5,651
525
7,457
Disposals
–29
–520
–533
–1,082
–9
9
0
0
–1,849
–8,072
–5
–9,926
–170
–6,474
0
–6,644
5,237
70,247
2,856
78,340
Reclassification
Depreciation and amortisation and value adjustments
Introduction Weleda Accounting Manual
as at December 31 2014
st
Intangible assets mainly concern software and associated projects as well as goodwill for the purchase of a pharmacy in Brazil.
The increase in property, plant and equipment consists primarily of investment projects as well as expenditure on replacements and
rationalisation in Germany, France and Switzerland.
The largest share of the amount under Property, plant and equipment, totalling EUR 17 million (prior year: EUR 25 million), relates to the
branch office in Germany. Switzerland accounts for EUR 23 million (prior year: EUR 24 million). Weleda France had property, plant and
equipment totalling EUR 11 million (prior year: EUR 11 million).
The impact of the introduction of the Weleda Accounting Manual has been included in the extraordinary result (see section 15).
Financial assets include all non-controlling interests as well as non-current amounts due from companies in which a non-controlling
interest is held and from third parties.
61
62
2 Inventories
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
Raw, auxiliary and operating materials
22,446
23,694
Unfinished products
17,010
8,103
Finished products
12,681
18,564
Trade goods
34,192
26,721
Value adjustments on inventories
–8,936
–8,404
Total inventories
77,393
68,678
Following the introduction of the Weleda Accounting Manual, part of inventories in Germany were no longer valued using the
LIFO method (last in – first out), but were valued on a FIFO (first in – first out) basis (section 15).
3 Trade receivables
From third parties
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
57,750
52,581
From companies in which a non-controlling interest is held
367
343
From shareholders
132
0
58,249
52,924
Total trade receivables
4 Other current receivables
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
4,412
2,970
From third parties
From companies in which a non-controlling interest is held and shareholders
9
9
855
605
5,276
3,584
2014
in 1,000 EUR
2013
in 1,000 EUR
424
380
26
59
Own shares and non-voting shares
Total other current receivables
Stock of own shares (in number: 218, previous year: 194) as at Jan. 1st
Purchase of own shares (in number: 17, previous year: 32)
Sale of own shares (in number: 214, previous year: 8)
Stock of own shares (in number: 21, previous year: 218) as at Dec. 31st
Stock of own non-voting shares (in number: 186, previous year: 179) as at Jan. 1st
–438
–15
12
424
181
177
Purchase of own non-voting shares (in number: 974, previous year: 12)
1,018
9
Sale of own non-voting shares (in number: 342, previous year: 5)
–356
–5
Stock of own non-voting shares (in number: 818, previous year: 186) as at Dec. 31st
843
181
Total own shares and non-voting shares as at Dec. 31st
855
605
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
To third parties
25,929
21,525
Total trade payables
25,929
21,525
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
11,642
8,207
Shares and non-voting shares were bought respectively sold at 250 per cent of the nominal value.
5 Trade payables
6 Other current liabilities
To third parties
To shareholders
Total other current liabilities
63
782
11,705
8,989
63
64
7 Provisions
in 1,000 EUR
Pension
provisions
Tax
provisions2
Other
provisions1
Total
Provisions
18,743
3,041
14,678
36,462
899
4,228
24,118
29,245
Utilisation
–244
–1,065
–9,238
–10,547
Decrease
–247
0
–896
–1,143
as at January 1st 2013
Increase
–77
–59
–90
–226
as at December 31st 2013
19,074
6,145
28,572
53,791
8,314
644
22,969
31,927
–316
–6,145
–10,377
–16,838
0
0
–2,676
–2,676
362
–17
521
866
as at December 31 2014
27,434
627
39,009
67,070
Increase
Utilisation
Decrease
st
of which current provisions
of which non-current provisions
0
0
9,065
9,065
27,434
627
29,944
58,005
1
ther provisions includes, inter alia, currency provisions, provisions for strategic projects and procurement for replacements following the sale of the Iscador brand.
O
In the prior year, other provisions also included vacation entitlement that had not yet been used, overtime and severance pay, which are now recognised in Accrued
charges and deferred income under the new Accounting Manual.
2
In 2013, this item also included an amount for current taxes that had not yet been paid. The introduction of the new Accounting Manual resulted in this amount
being recognised in Accrued charges and deferred income. As at end 2014, Tax provisions only included provisions for deferred tax.
Pension liabilities were created in France following the introduction of the Accounting Manual. These were not included in financial
statements in previous years (see section 15). Further, additional pension provisions were created following a new expert assessment
in the UK.
8 Non-current financial liabilities
in 1,000 EUR
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
Bank loans
16,572
26,443
Funds and trustee loans
19,468
31,213
Other non-current financial liabilities
2,004
1,969
38,044
59,625
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
Residual maturity 1 to 5 years
36,140
49,572
Residual maturity over 5 years
1,904
10,053
38,044
59,625
Total
Maturity
Total
All financial liabilities due within the following 12 months were disclosed in current financial liabilities.
65
66
9 Net sales
Product groups
2014
in 1,000 EUR
2014
%
2013
in 1,000 EUR
2013
%
Natural and organic cosmetics
254,022
69.7
236,327
70.2
Pharmaceuticals
110,267
30.3
100,373
29.8
364,289
100
336,700
100
2014
in 1,000 EUR
2014
%
2013
in 1,000 EUR
2013
%
Net sales
Regions
201,983
55.5
190,485
56.6
Western Europe (France, UK, Benelux)
D-A-CH (Germany, Austria, Switzerland)
95,532
26.2
81,946
24.3
Northern, Central and Eastern Europe (Scandinavia, Russia, Czech Republic)
16,542
4.6
15,555
4.6
North America
11,819
3.2
12,656
3.8
29,604
8.1
28,066
8.3
8,809
2.4
7,992
2.4
364,289
100
336,700
100
South America, Italy, Spain
Asia/Pacific
Net sales
10 Other income
Total other income
Other income includes rental income and gains from the sale of non-current assets.
2014
in 1,000 EUR
2013
in 1,000 EUR
6,460
7,047
11 Employee income and social expenditure
2014
in 1,000 EUR
2013
in 1,000 EUR
Employee income
99,167
91,200
Social contributions and pension fund
32,975
25,716
132,142
116,916
2014
in 1,000 EUR
2013
in 1,000 EUR
Total expenses
12 Depreciation and amortisation
Intangible assets
1,849
1,985
8,072
16,504
Total depreciation and amortisation
9,921
18,489
2014
in 1,000 EUR
2013
in 1,000 EUR
Sales and distribution costs
70,491
58,256
Operating costs
21,103
19,019
Administrative costs
20,317
16,113
13 Other operating expenses
Contributions, levies, property and capital taxes
2,722
2,898
Other expenses
2,770
3,923
117,403
100,209
Total other operating expenses
Other operating expenses includes, but is not limited to, sales and distribution costs such as advertising and market communication,
sales documents, material costs of external sales and all postal costs. This item also includes costs for building and machine maintenance, legal and consulting costs, IT expenses and costs for third-party research as well as other expenses. The item Other expenses
includes donations of EUR 1.5 million to the School of Spiritual Science in Dornach.
67
68
14 Financial result
2014
in 1,000 EUR
Interest and similar income
2013
in 1,000 EUR
189
139
Interest and similar expenses
–3,550
–4,390
Exchange rate differences, net
–1,525
–970
–5
–192
–4,891
–5,413
Value adjustments financial assets
Total financial result
The item Interest and similar expenses includes interest in the amount of EUR 1.1 million (prior year: EUR 1.6 million) for the GLS
fund in Germany and the Swiss trustee loans.
15 Extraordinary result
This item contains the following adjustments in the year under review, made necessary by the new Weleda Accounting Manual:
Value adjustments as at January 1st 2014
Non-current assets
in 1,000 EUR
Section
–6,644
1
Inventories
1,365
2
Provisions
–2,622
7
Total
–7,901
The previous year included the recognition of a provision for strategic projects in connection with the implementation of the
pharmaceutical strategy.
16 Income taxes
Income taxes occurred mainly in Germany, France, Austria and Brazil.
Other information pursuant to article 663b ff. Swiss Code of Obligations
Contingent liabilities and other financial obligations
Guarantees
Contingent liabilities for benefit provision
Fair value of derivative financial instruments
1
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
156
2,957
0
1,551
–1,238
–1
Data was collected for the first time in 2014, following the introduction of the Weleda Accounting Manual.
Pension liabilities in the amount of EUR 1,676,000 were created in France following the introduction of the Accounting Manual. In previous years, these were included in the Notes to the financial statements as contingent liabilities. The derivative financial instruments
relate to interest hedges (variable to fixed rate) in France for existing financial liabilities.
Long-term rental and leasing obligations
Residual maturity up to 5 years
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
14,543
14,632
11,867
13,995
Total
26,410
28,627
There are rental and leasing obligations for computer hardware, vehicles and production machinery as well as buildings.
Liabilities for benefit provisions
Pension fund, Weleda AG, Arlesheim
Fire insurance values for property, plant and equipment
Weleda Group
Total amount of assets pledged or assigned to secure own liabilities and
assets under reservation of ownership
Weleda Group
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
1,830
1,816
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
303,456
288,747
31.12.2014
in 1,000 EUR
31.12.2013
in 1,000 EUR
30,526
32,802
69
70
Overview of Group and holding companies
Consolidated
companies
Registered office
Function
Currency
Company capital
in 1,000
Capital share
2014
Capital share
2013
Weleda AG
CH-Arlesheim/
D-Schwäbisch Gmünd
Headquarters: incl. production,
trade and services
CHF
4,750
100.0%
100.0%
Weleda Benelux SE
NL-Zoetermeer
Production and trade
EUR
2,269
100.0%
100.0%
Weleda Ges.m.b.H.
A-Vienna
No operative function
EUR
36
100.0%
100.0%
Weleda Ges.m.b.H. & Co. KG
A-Vienna
Trade
EUR
1,100
100.0%
100.0%
Weleda Trademark AG
CH-Arlesheim
Services
CHF
1,000
100.0%
100.0%
Weleda Inc.
USA-Irvington, NY
Trade
USD
8,525
100.0%
100.0%
Weleda Italia S.r.l.
I-Milan
Trade
EUR
500
100.0%
100.0%
Weleda Ltda.
BRA-São Paulo
BRL
27,140
100.0%
100.0%
Weleda Naturals GmbH
Services
EUR
25
100.0%
100.0%
Weleda East GmbH
RUS-Moscow
Trade
RUB
10
100.0%
100.0%
Weleda S.A.U.
E-Madrid
Trade
EUR
685
100.0%
100.0%
Weleda (NZ) Ltd
NZL-Havelock North
NZD
169
100.0%
100.0%
Weleda Australia Pty Ltd
AUS-Warriewood
Trade
AUD
0
100.0%
100.0%
Weleda AB
S-Stockholm
Trade
SEK
2,000
100.0%
100.0%
Weleda Ltda.
CHL-Santiago de Chile
CLP
491,321
99.7%
99.7%
Weleda (Australasia) Ltd
NZL-Havelock North
Services
NZD
1,139
99.5%
99.5%
Weleda spol. s.r.o.
CZ-Prague
Trade
CZK
19,684
99.3%
99.3%
95.0%
Weleda S.A.
ARG-Buenos Aires
ARS
7,622
95.0%
Weleda UK Ltd
GB-Ilkeston
GBP
1,495
95.0%
94.5%
Weleda S.A.
F-Huningue
EUR
3,400
89.7%
83.3%
Weleda Japan Co., Ltd
JP-Nagoya
JPY
10,000
35.0%
35.0%
Information regarding the carrying out of a risk assessment
In the course of the 2014 financial year, the management of the Weleda Group carried out the process of identifying and assessing material corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding measures.
Events after the balance sheet date
The Swiss National Bank (SNB) discontinued its minimum exchange rate of CHF 1.20 per EUR on January 15th 2015. The carrying values
of various items contained in the balance sheet are dependent on future developments in exchange rates that cannot be assessed at
the present time. These developments could have a major impact on the income statement for 2015. Any value adjustments that
become necessary will be recognised in the financial statements for 2015.
71
72
to the General Meeting on the consolidated financial statements 2014
Report of the statutory auditor on the consolidated
financial statements
the auditor considers the internal control system relevant to the
entity’s preparation of the consolidated financial statements in
order to design audit procedures that are appropriate in the cirAs statutory auditor, we have audited the accompanying cumstances, but not for the purpose of expressing an opinion on
consolidated financial statements of Weleda AG, which comprise the effectiveness of the entity’s internal control system. An audit
the balance sheet, income statement, cash flow statement and also includes evaluating the appropriateness of the accounting
notes, pages 54 to 71, for the year ended 31st December 2014. policies used and the reasonableness of accounting estimates
made, as well as evaluating the overall presentation of the conBoard of Directors’ responsibility
solidated financial statements. We believe that the audit eviThe Board of Directors is responsible for the preparation of the dence we have obtained is sufficient and appropriate to provide
consolidated financial statements in accordance with the require- a basis for our audit opinion.
ments of Swiss law and the consolidation and valuation principles
described in the notes. This responsibility includes designing, im- Opinion
plementing and maintaining an internal control system relevant to In our opinion, the consolidated financial statements for the
the preparation of consolidated financial statements that are free year ended 31st December 2014 comply with Swiss law as well
from material misstatement, whether due to fraud or error. The as with the consolidation and valuation principles described in
Board of Directors is further responsible for selecting and applying the notes.
appropriate accounting policies and making accounting estimates
that are reasonable in the circumstances.
Report on other legal requirements
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated We confirm that we meet the legal requirements on licensing accor
financial statements based on our audit. We conducted our audit ding to the Auditor Oversight Act (AOA) and independence (article
in accordance with Swiss law and Swiss Auditing Standards. 728 CO) and that there are no circumstances incompatible with our
Those standards require that we plan and perform the audit to independence.
In accordance with article 728a paragraph 1 item 3 CO and
obtain reasonable assurance whether the consolidated financial
Swiss Auditing Standard 890, we confirm that an internal control
statements are free from material misstatement.
An audit involves performing procedures to obtain audit system exists which has been designed for the preparation of
evidence about the amounts and disclosures in the consolidated consolidated financial statements according to the instructions
financial statements. The procedures selected depend on the of the Board of Directors.
We recommend that the consolidated financial statements
auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, submitted to you be approved.
whether due to fraud or error. In making those risk assessments,
PricewaterhouseCoopers Ltd, Münchenstein, 15th April 2015
Dr. Rodolfo Gerber, Audit expert/Auditor in Charge
Marco Köstinger, Audit expert
73
Annual Financial Report 2014
Weleda AG
Consisting of Arlesheim headquarters and branch office Schwäbisch Gmünd
Table of contents
Balance sheet of Weleda AG
Page 74
Income statement of Weleda AG
Page 75
Statement of shareholders’ equity of Weleda AG
Page 76
Notes to the financial statements of Weleda AG
Page 77
Proposed appropriation of the result for the year
Page 82
Page 83
74
Annual financial report of Weleda AG
Balance sheet of Weleda AG
Assets
Notes
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
Non-current assets
Intangible assets
Financial assets
1
Total non-current assets
9,379
11,346
49,072
58,981
49,086
53,564
107,537
123,891
Current assets
Inventories
62,389
53,567
Trade receivables
2
56,317
47,620
Other current receivables
3
5,762
10,068
Deferred charges and prepaid expenses
948
1,554
Marketable securities
187
153
24,737
15,500
Total current assets
150,340
128,462
Total assets
257,877
252,353
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
4,750
4,750
Cash and cash equivalents
Shareholders’ equity and liabilities
Notes
Share capital
9,500
9,500
Premium from capital contribution
Non-voting share capital
12,000
12,000
Reserves
73,682
82,428
0
–17,105
99,932
91,573
18,552
20,839
14,118
6,011
Accumulated profit/loss
Total shareholders’ equity
Current liabilities
Trade payables
4
Current financial liabilities
Other current liabilities
5
Current provisions
Accrued charges and deferred income
Total current liabilities
3,096
6,644
9,347
19,675
15,111
857
60,224
54,026
62,311
Non-current liabilities
6
39,877
Other non-current liabilities
7
19,515
7,636
38,329
36,807
Non-current provisions
Total non-current liabilities
97,721
106,754
Total liabilities
157,945
160,780
Total shareholders’ equity and liabilities
257,877
252,353
Income statement of Weleda AG
Notes
Net sales
Changes in inventories of finished goods
and work in progress
2014
in 1,000 CHF
2013
in 1,000 CHF
303,814
280,752
7,846
280
Total sales
311,660
281,032
Cost of goods sold
–106,808
–97,584
Gross profit
204,852
183,448
11,878
11,446
–96,572
–86,228
Other income
Employee income and social expenditure
Depreciation and amortisation on non-current assets
Other operating expenses
Total operating expenditure
Financial result
8
Ordinary result before tax
Extraordinary result
Result before tax (EBT)
Income taxes
Profit for the year
9
–8,202
–9,963
–84,191
–66,230
–188,965
–162,421
27,765
32,473
–3,987
–4,435
23,778
28,038
–6,838
–18,462
16,940
9,576
–8,122
–8,173
8,818
1,403
75
76
Statement of shareholders’ equity of Weleda AG
as at December 31st
Statement of shareholders’ equity
in 1,000 CHF
Company
capital1
Premium
from capital
contribution
Reserve for
own shares
Other legal
reserves
Other
reserves
Accumulated
profit/loss
Total
shareholders’
equity
14,250
12,000
673
3,400
78,442
–18,508
90,257
1,403
1,403
January 1st 2013
Change in own shares/non-voting shares
December 31st 2013
68
14,250
12,000
741
3,400
Carried forward to Other reserves2
0
78,287
–17,105
91,573
–17,105
17,105
0
–698
–698
8,818
8,818
243
243
–4
–4
–286
0
Change in own shares/non-voting shares
December 31st 2014
286
14,250
ompany capital is broken down as follows:
C
3,478 registered shares at CHF 1,000.00
19,000 registered non-voting shares at CHF 500.00
There was no change in the company capital versus the prior year.
2
–87
–68
Dividends to shareholders/holders of
non-voting shares2
Elimination of dividends on own shares until 2009
1
–87
As per GM resolution of June 6th 2014
12,000
1,027
3,400
69,255
0
99,932
Notes to the financial statements of Weleda AG
1 Financial assets
Shares in associated companies
Shares in non-controlling interests
Loans to associated companies
Loans to companies in which a non-controlling interest is held
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
46,876
45,875
130
130
1,345
6,558
696
948
Other financial assets
39
53
Total financial assets
49,086
53,564
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
From third parties
37,221
33,800
From associated companies
18,512
13,425
From companies in which a non-controlling interest is held
425
395
From shareholders
159
0
56,317
47,620
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
2 Trade receivables
Total trade receivables
3 Other current receivables
From third parties
2,045
643
From associated companies
2,680
8,674
From companies in which a non-controlling interest is held and from shareholders
10
10
1,027
741
Total other current receivables
5,762
10,068
77
78
4 Trade payables
To third parties
To associated companies
Total trade payables
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
18,534
16,521
18
4,318
18,552
20,839
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
3,086
1,280
0
5,115
10
249
3,096
6,644
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
5 Other current liabilities
To third parties
To shareholders
Total other current liabilities
6 Non-current financial liabilities
Bank loans
14,269
21,859
Funds and trustee loans
23,408
38,252
Other non-current financial liabilities
Total
Maturity
2,200
2,200
39,877
62,311
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
Residual maturity 1 to 5 years
37,677
51,287
2,200
11,024
39,877
62,311
Total
Scheduled repayments due within the following 12 months have been disclosed in current financial liabilities.
7 Other non-current liabilities
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
19,515
7,636
Total other non-current liabilities
19,515
7,636
2014
in 1,000 CHF
2013
in 1,000 CHF
8 Financial result
Dividends and licence income from associated companies
174
2
Interest from associated company loans
139
756
Interest and similar income from third parties
Interest and similar expenses relating to associated companies
Interest and similar expenses relating to third parties
Exchange rate differences, net
Value adjustments/provisions financial assets
Total financial result
80
80
–443
–474
–3,226
–3,991
–711
–575
0
–233
–3,987
–4,435
9 Extraordinary result
The extraordinary result contains adjustments in the year under review, made necessary by the new Weleda Accounting Manual:
the previous year included the recognition of a provision for strategic projects in connection with the implementation of the pharmaceutical strategy.
79
80
Information pursuant to article 663b ff. Swiss Code of Obligations
Total amount of assets pledged or assigned to secure own liabilities
and assets under reservation of ownership
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
26,641
25,882
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
120
10,915
4,232
4,684
Contingent liabilities and other
financial obligations
Guarantees
Long-term rental and leasing obligations
Weleda AG has rental and leasing obligations for computer hardware, vehicles and production machinery as well as for buildings.
Fire insurance values for property, plant and equipment
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
134,359
128,514
81,429
77,493
31.12.2014
in 1,000 CHF
31.12.2013
in 1,000 CHF
2,200
2,225
2014
in 1,000 CHF
2013
in 1,000 CHF
519
459
31
80
Weleda AG, Schwäbisch Gmünd
Liabilities for benefit provisions
Pension fund, Weleda AG, Arlesheim
Stock of own shares (in number: 218, previous year: 194) as at Jan. 1st
Purchase of own shares (in number: 17, previous year: 32)
Sale of own shares (in number: 214, previous year: 8)
Stock of own shares (in number: 21, previous year: 218) as at Dec. 31st
Stock of own non-voting shares (in number: 186, previous year: 179) as at Jan. 1st
–535
–20
15
519
222
214
Purchase of own non-voting shares (in number: 974, previous year: 12)
1,218
14
Sale of own non-voting shares (in number: 342, previous year: 5)
–428
–6
Stock of own non-voting shares (in number: 818, previous year: 186) as at Dec. 31st
1,012
222
Total own shares and non-voting shares
1,027
741
Shares and non-voting shares were bought respectively sold at 250 per cent of the nominal value.
Equity interests
Registered office
Function
Weleda Benelux SE
NL-Zoetermeer
Currency
Company
capital
in 1,000
Capital
share
2014
Capital
share
2013
EUR
2,269
100.0%
100.0%
Weleda Ges.m.b.H.
A-Vienna
No operative function
EUR
36
100.0%
100.0%
Weleda Ges.m.b.H. & Co. KG
A-Vienna
Trade
EUR
1,100
100.0%
100.0%
Weleda Trademark AG
CH-Arlesheim
Services
CHF
1,000
100.0%
100.0%
Weleda Inc.
USA-Irvington, NY
Trade
USD
8,525
100.0%
100.0%
I-Milan
Trade
EUR
500
100.0%
100.0%
Weleda Ltda.
BRA-São Paulo
BRL
27,140
100.0%
100.0%
Weleda Naturals GmbH
Services
EUR
25
100.0%
100.0%
Weleda East GmbH
RUS-Moscow
Trade
RUB
10
100.0%
100.0%
Weleda S.A.U.
E-Madrid
Trade
EUR
685
100.0%
100.0%
Weleda (NZ) Ltd
NZL-Havelock North
NZD
169
100.0%
100.0%
AUS-Warriewood
Trade
AUD
0
100.0%
100.0%
Weleda AB
S-Stockholm
Trade
SEK
2,000
100.0%
100.0%
Weleda Ltda.
CHL-Santiago de Chile
CLP
491,321
99.7%
99.7%
Weleda (Australasia) Ltd
NZL-Havelock North
Services
NZD
1,139
99.5%
99.5%
Weleda spol. s.r.o.
CZ-Prague
Trade
CZK
19,684
99.3%
99.3%
Weleda S.A.
ARG-Buenos Aires
ARS
7,622
95.0%
95.0%
Weleda UK Ltd
GB-Ilkeston
GBP
1,495
95.0%
94.5%
Weleda S.A.
F-Huningue
EUR
3,400
89.7%
83.3%
JP-Nagoya
JPY
10,000
35.0%
35.0%
Information regarding the carrying out of a risk assessment
In the course of the 2014 financial year, the management of Weleda AG carried out the process of identifying and assessing material
corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding measures.
Consistency
The introduction of the Weleda Accounting Manual means that accounting consistency is no longer ensured. The impact on the income
statement as at January 1st 2014 was included in the extraordinary result. The introduction of the Weleda Accounting Manual has also
led to the reclassification of individual positions in the balance sheet.
Events after the balance sheet date
The Swiss National Bank (SNB) discontinued its minimum exchange rate of CHF 1.20 per EUR on January 15th 2015. The carrying values
of various items contained in the balance sheet are dependent on future developments in exchange rates that cannot be assessed at
the present time. These developments could have a major impact on the income statement for 2015. Any value adjustments that
become necessary will be recognised in the financial statements for 2015.
81
82
Proposed appropriation of the result for the year
Board of Directors’ proposed appropriation of the result for the year
in CHF
Profit for 2014
8,817,781.36
To be used as follows:
Allocation to Other reserves
8,105,281.36
Distribution of 5 % dividend on share capital of CHF 4,750,000.00
237,500.00
Distribution of 5 % dividend on non-voting share capital of CHF 9,500,000.00
475,000.00
Total
8,817,781.36
Other reserves December 31st 2014
69,254,304.93
Other reserves after appropriation of profit
68,541,804.93
CHF
per share
CHF
per share
CHF
per share
CHF
per non-voting share
112.50
125.00
1,000.00
500.00
5.65
6.25
50.00
25.00
minus 35% Swiss withholding tax
–2.00
–2.20
–17.50
–8.75
Net dividend per share/non-voting share
3.65
4.05
32.50
16.25
Dividend
Share/non-voting share (nominal)
Annual dividend 5%
Dividend payment
Provided the General Shareholders’ Meeting approves the proposed appropriation of profit, we will transfer payment of the dividend
in calendar week 24. No dividend will be paid for shares and non-voting shares held directly by the company at the time of dividend
payment.
Swiss federal withholding tax of 35 per cent will be deducted from the gross dividend amount. This can usually be reclaimed
via tax returns. This applies to shareholders and holders of non-voting shares resident in Switzerland or a country with which Switzer
land has concluded a double tax agreement. For this reason, the relevant banking receipt should be safely stored and enclosed with
the final tax return.
Weleda AG, Arlesheim, April 15th 2015
On behalf of the Board of Directors
Paul Mackay, Chairman
Dr Jürg Galliker, Deputy Chairman
to the General Shareholders’ Meeting of Weleda AG
Report of the statutory auditor on the
financial statements
internal control system relevant to the entity’s preparation of the
financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of exAs statutory auditor, we have audited the accompanying financial pressing an opinion on the effectiveness of the entity’s internal
statements of Weleda AG, which comprise the balance sheet, in- control system. An audit also includes evaluating the appropriatecome statement and notes, pages 74 to 81, for the year ended ness of the accounting policies used and the reasonableness of
accounting estimates made, as well as evaluating the overall
31st December 2014.
presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the fi- provide a basis for our audit opinion.
nancial statements in accordance with the requirements of Swiss
law and the company’s articles of incorporation. This responsibility Opinion
includes designing, implementing and maintaining an internal con- In our opinion, the financial statements for the year ended 31st Detrol system relevant to the preparation of financial statements cember 2014 comply with Swiss law and the company’s articles
that are free from material misstatement, whether due to fraud or of incorporation.
error. The Board of Directors is further responsible for selecting
and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Report on other legal requirements
We confirm that we meet the legal requirements on licensing
Auditor’s responsibility
Our responsibility is to express an opinion on these financial according to the Auditor Oversight Act (AOA) and independence
statements based on our audit. We conducted our audit in ac- (article 728 CO) and that there are no circumstances incompatible
cordance with Swiss law and Swiss Auditing Standards. Those with our independence.
In accordance with article 728a paragraph 1 item 3 CO and
standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are free Swiss Auditing Standard 890, we confirm that an internal control
system exists which has been designed for the preparation of
from material misstatement.
An audit involves performing procedures to obtain audit financial statements according to the instructions of the Board of
evidence about the amounts and disclosures in the financial Directors.
We further confirm that the proposed appropriation of
statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material mis- the result for the year complies with Swiss law and the company’s
statement of the financial statements, whether due to fraud or articles of incorporation. We recommend that the financial stateerror. In making those risk assessments, the auditor considers the ments submitted to you be approved.
PricewaterhouseCoopers Ltd, Münchenstein, 15th April 2015
Dr. Rodolfo Gerber, Audit expert/Auditor in Charge
Marco Köstinger, Audit expert
83
84
Certifications
Certifications
of Weleda countries
Switzerland
Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland, Tel. +41 61 705 21 21, www.weleda.ch
Certified in accordance with ISO 14001 and EMAS/
Verified Environmental Management
Germany
Weleda AG, Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany, Tel. +49 7171 91 90, www.weleda.de
Certified in accordance with ISO 14001 and EMAS/
Verified Environmental Management, D-135-00032
France
Weleda S.A., 9, rue Eugène Jung, 68331 Huningue Cedex, France, Tel. +33 38 969 68 00, www.weleda.fr
Certified in accordance with ISO 14001
Sweden
Weleda AB, Ludvigsbergsgatan 20, 11823 Stockholm, Sweden, Tel. +46 85 515 18 00, www.weleda.se
Certified in accordance with ISO 14001
Italy
Weleda Italia S.r.l., Via del Ticino 6, 20153 Milano, Italy, Tel. +39 02 487 70 51, www.weleda.it
Certified in accordance with SA8000
(Social Accountability Standard)
Global Reporting Initiative
GRI indicators index
Weleda’s corporate responsibility reporting is geared to internationally recognised standards and guidelines (current G3 version of the
Global Reporting Initiative, or GRI). The GRI was started in 1997 by the Coalition of Environmentally Responsible Economies (Ceres) and the
United Nations Environment Programme (UNEP); more detailed information can be found on the Internet at www.globalreporting.org.
Index
Standard disclosures
2.1
Name of the organisation
Page
Cover
2.2
Primary products and services
35–41
2.3
Operational structure of the organisation, including main divisions, operating companies,
subsidiaries and joint ventures
8–10, 86
2.4
Location of the organisation’s headquarters
86, 87
2.5
Countries where the organisation operates
42– 47, 86
2
2.6
Nature of ownership and legal form
2.8
Scale of the organisation (number of employees, net sales, total capitalisation)
2, 4–5, 47
2.9
Significant changes in structure
8–10
2.10
Awards received in the reporting period
31, 40, 46
3.1–3.4
Reporting profile: reporting period, date of most recent report, reporting cycle,
contact point for questions regarding the report
Cover, 87
3.12
GRI indicators index
85
4.1
Corporate governance
33
4.8
Mission statements, code of conduct and relevant principles (internal)
11–13, 25, 31, 33
4.12
Charters, principles or initiatives (external)
15–17, 26–28
Economic
EC1
Direct economic value generated and distributed
4, 32
EC8
Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, in-kind, or pro bono engagements
26–28
Environmental
EN1–EN2
Materials used and recycling
23
EN3
Direct energy consumption
19, 22
EN4
Indirect energy consumption
19, 22
EN8
Total water withdrawal
18, 22
EN10
Volume of water recycled and reused
18
EN11–EN12
Location and site of land owned, leased, managed in, or adjacent to, protected areas and
areas of high biodiversity value and impact on biodiversity
16–17
EN14
Strategies, current actions and future plans for managing impacts
on biodiversity
15–17
EN16
Greenhouse gas emissions
19, 23
EN22
Total weight of waste by type and disposal method
21, 23
EN26
Initiatives to mitigate environmental impacts of products and services
15–21
Labour practices and decent work
LA1
Total workforce by employment type, contract and region
29
LA13
Employees per category according to gender, age group and other indicators of diversity
29
HR2
Screening on human rights among suppliers and contractors
27
HR6–7
Measures to contribute to the elimination of child and forced labour
27
PR1
Health and safety in respect of products and services
35–41
85
86
Addresses
Weleda throughout the world
Switzerland
Weleda AG
Tel. +41 61 705 21 21, www.weleda.ch and www.weleda.com
Weleda Trademark
Tel. +41 61 705 20 50
Germany
Weleda AG
Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany
Tel. +49 7171 91 90, www.weleda.de
Argentina
Weleda S.A.
Ramallo 2566, C1429DUR Buenos Aires, Argentina
Tel. +54 11 4704 4700, www.weleda.com.ar
Australia
Unit 2/92A Mona Vale Road, Warriewood NSW 2102, Australia
Tel. +61 29 997 5171, www.weleda.com.au
Benelux
Weleda Benelux SE
Platinastraat 161, Postbus 733, 2718 SR Zoetermeer, Netherlands
Tel. +31 79 363 13 13, www.weleda.nl and www.weleda.be
Brazil
Weleda do Brasil Laboratório e Farmácia Ltda.
Rua Brigadeiro Henrique Fontenelle 33,
CEP 0512500 Parque São Domingos, São Paulo, Brazil
Tel. +55 11 3641 4122, www.weleda.com.br
Chile
Weleda Chile Ltda.
Evaristo Lillo 78, Of. 401
Las Condes, Santiago de Chile, Chile
Tel. +56 02 240 2700, www.weleda.cl
France
Weleda S.A.
9, rue Eugène Jung, 68331 Huningue Cedex, France
Tel. +33 38 969 68 00, www.weleda.fr
United Kingdom
Weleda UK Ltd
Heanor Road, Ilkeston, Derbyshire, DE7 8DR, United Kingdom
Tel. +44 11 5944 8222, www.weleda.co.uk
Italy
Via del Ticino 6, 20153 Milan, Italy
Tel. +39 02 487 70 51, www.weleda.it
Japan
Ebisu IS building 4F, 13-6, Ebisu 1, Shibuya-ku, Tokyo 150-0013, Japan
Tel. +81 52232 1165, www.weleda.jp
New Zealand
Weleda (NZ) Ltd
302 Te Mata Road, P.O. Box 8132, Havelock North 4157, New Zealand
Tel. +64 6 872 87 00, www.weleda.co.nz
Austria
Weleda Ges.m.b.H & Co. KG
Hosnedlgasse 27 A, 1220 Vienna, Austria
Tel. +43 1256 60 60, www.weleda.at
Peru
Weleda del Perú S.A.
Francisco de Zela 2672, Lima 14, Peru
Tel. +51 1 222 27 61, www.weleda.com.pe
Russia
Weleda East LLC
Rusakovskay 13, BC “Borodino Plaza”
107140 Moscow, Russia
Tel. +7 495 604 15 06, www.weleda-ru.ru
Sweden
Weleda AB
Ludvigsbergsgatan 20, 11823 Stockholm, Sweden
Tel. +46 85 515 18 00, www.weleda.se
Slovakia
Weleda spol. s.r.o. (branch of Weleda Czech Republic)
Dúbravská cesta č 9, 84104 Bratislava, Slovak Republic
Tel. +421 25 443 39 07, www.weleda.sk
Spain
Weleda S.A.U.
Calle Manuel Tovar 3, 28034 Madrid, Spain
Tel. +34 91 358 03 58, www.weleda.es
Czech Republic
Weleda spol. s.r.o.
Lidickà 336/28, 150 00 Prague 5, Czech Republic
Tel. +420 25 731 58 88, www.weleda.cz
USA
Weleda North America (Weleda Inc.)
1 Bridge Street, Suite 42, Irvington, NY 10533, USA
Tel. +1 800 241 1030, www.usa.weleda.com
Publication details
Publication details
The Annual and Sustainability Report 2014 of the Weleda Group and Weleda AG is available in English and German.
The German version is binding.
Date of publication
Issued by
Editors
May 11th 2015
Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland, www.weleda.com
Frédéric Anklin, Holger Biller, Natascha Blank, Michael Brenner, Martin Cadosch, Rebekka Dubach,
Birgit Frank, Andrea Freund, Tobias Jakob, Marcel Locher, Susi Lotz (project coordination), Ulla Röber,
Bas Schneiders, Theo Stepp (editorial responsibility), Sonja Thiele (picture editor), Günseli Ünlü
Photos
Torsten Arncken, Basellandschaftliche Kantonalbank, Geneviève Barraqué, Irmin Eitel, Louisa Feiter,
Flugschnaisa, Bernd Jonkmanns, Asaf Matarasso, Buero Berlin Sabina Paries,
Thomas v. Künsberg Sarre, Karen Staudt, Sonja Thiele, Pedro Toledo, David Voelkel, Marek Vogel,
Barbara v. Woellwarth, Zoodesign M. Pfefferle
Design
Furore GmbH, Basel, Switzerland
Printed by
Paper
Contact for questions
Druckerei Lokay e.K., Königsberger Str. 3, 64354 Reinheim, Germany
Circle matt white, FSC-certified, Der Blaue Engel RAL-ZU 14, EU Ecolabel
regarding the reportTheo Stepp, Corporate Communications, Tel. +497171/919-178; tstepp@weleda.de
Art. no. 00085509 (CH), art. no. 50050700 (D)
Weleda AG produces its Annual and Sustainability Report on a yearly basis. The last report produced was the
Annual and Sustainability Report 2013 of the Weleda Group and Weleda AG.
carbon neutral
natureOffice.com | DE-344-567874
print production
87
www.weleda.com

Annual and Sustainability Report 2014

Transcription

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