GREINER GROUP ANNUAL REPORT 2014 · GROUP STRUCTURE GREINER HOLDING AG Kremsmünster, AT –...

1GREINER GROUP ANNUAL REPORT 2014

GREINER GROUP ANNUAL REPORT 2014

GROUP STRUCTURE

GREINER HOLDING AGKremsmünster, AT – Management Board: Axel Kühner, Hannes Moser

GREINER PACKAGING INTERNATIONAL GMBH Plastic packaging for food and consumer goods, technical components Divisions: K, Kavo, Assistec Headquarters: Sattledt, AT – CEO: Willi Eibner

GREINER TOOL.TEC GMBHTools, machines and equipment for profile extrusionDivisions: Window, Technical Profiles, Greiner Production NetworkHeadquarters: Nußbach, AT – CEO: Gerhard Ohler

GREINER BIO-ONE INTERNATIONAL GMBHMedical technology, diagnostics, life scienceDivisions: BioScience, Preanalytics, Diagnostics, OEM, MediscanHeadquarters: Kremsmünster, AT – CEO: Rainer Perneker

GREINER PERFOAM GMBHInterior parts for automobiles, acoustic insulationDivisions: Interiors, AcousticsHeadquarters: Enns, AT – CEO: Michael Schleiss

GREINER FOAM INTERNATIONAL GMBHFoams for comfort, sports and technical applications, aircraft seats, containers Divisions: Eurofoam, Greiner Foam S.A., Unifoam, MULTIfoam, aerospace, PURtecHeadquarters: Kremsmünster, AT – CEO: Manfred Marchgraber

KEY INDICATORSACTUAL in EUR million, or staff numbers (excl. leased personnel), according to the Austrian Commercial Code (UGB), joint ventures pro rata* 2013 figures on a comparable basis

2014 2013*

Consolidated revenue 1,320 1,293

Cash flow 113 83

Investments 81 61

Employees 8,451 8,170

Revenue per employee 0.16 0.16

DIVERSIFICATION. INNOVATION. GLOBALIZATION.


CONTENTS

2 Vision 2020

4 Introduction by the Management Board

8 Plastics for Life

18 Company Profile/Bodies

20 Management Report

26 Greiner Packaging International GmbH

34 Greiner Bio-One International GmbH

42 Greiner Foam International GmbH

50 Greiner Perfoam GmbH

58 Greiner Tool.Tec GmbH

67 Distribution of Ownership

DIVERSIFICATION. INNOVATION. GLOBALIZATION.2

For years, one of the Greiner Group’s key strengths has been its strong diversification. Even if products and markets differ from each other, all parts of the company have a common denominator: Plastic. The “Plastics for Life” vision expresses this common feature. Around the world, plastics often have to com-bat their negative image. Reports in the media about plastic islands of trash in the world’s oceans, and about substances that could leak from packaging into our food, contribute signifi-cantly to this image. The Greiner Group is well aware of this problem. However, the company

is completely convinced that its products can create added value for people’s lives. Greiner Packaging International manufactures plas-tic packaging which extends the shelf life of food. Products from Greiner Bio-One Interna-tional reduce the risk of infection when taking blood samples. Greiner Foam International and Greiner Perfoam develop innovations which make automobiles and planes, amongst other things, more efficient and more comfortable. Thanks to Greiner Tool.Tec’s knowledge and experience, manufacturers of plastic profiles can save valuable energy and resources.

Under the heading of “Plastics for Life”, the Greiner Group has spent the last few months working on a new company vision, principles which will guide the group to 2020 and beyond.

PLASTICS FOR LIFE: THE VISION 2020


At the same time, the Greiner Group is com-mitted to constantly improving their pro-cesses in order to save energy and optimize the consumption of raw materials. As a global company, they know they have a particular responsibility in this area. Treating people and the environment with care and respect, and exhibiting sustainable management are all a top priority. In future, the Greiner Group wants to raise more public awareness of this com-mitment.Based on the strategic cornerstones of diver-sification, innovation and globalization, the

Greiner Group has set itself clear growth objectives as part of the 2020 Vision. By the year 2020, the group wants to be generat-ing EUR 2.5 billion in revenue and to have increased the workforce to 15,000 employ-ees; this is equivalent to doubling the figures from the 2013 fiscal year. The level of invest-ment required to achieve this is EUR 900 million. These ambitious goals require the commitment of the entire Greiner Group. The company is therefore already working on spe-cific measures designed to make the intended growth achievable.

The content of the presentations for all divisional visions was captured live on screens at the second International Management Meeting 2014 in a “memory log”. The result illustrates the 2020 Vision of the Greiner Group.

2014 WAS THE MOST SUCCESSFUL YEAR IN THE HISTORY OF GREINER. THIS WAS DOWN TO THE COMMITMENT OF EVERY SINGLE EMPLOYEE.

Hannes Moser Axel KühnerCFO CEOGreiner Holding AG Greiner Holding AG


GREINER GROUP‘S FOCUS ON THE FUTURE

In 2015, the Greiner Group will celebrate their 147-year anniversary and has always stood out, thanks to the pioneering spirit of the peo-ple involved, and company leadership focused on the long-term. Diversification of product areas, a focus on innovation, and foresighted expansion in growing markets are the three pillars on which the success of the Greiner Group is built. This is a recipe for success that will also continue to be the basis for growth in the future. Combining the core competen-cies in the Greiner Group meant that 2014 was a year of consolidation. The integration of Greiner aerospace and Greiner PURtec into Greiner Foam International was completed and

additional synergies created from the company group. Greiner Perfoam was brought back onto a highly profitable course and won significant new orders. The expansion of Greiner Pack-aging International in the US was successfully implemented. The market offers a promising future, particularly for innovative and sustain-able packaging solutions. Greiner Bio-One International was integrated as the fifth divi-sion of Greiner Holding AG and has now been consolidated in full. Greiner Tool.Tec consoli-dated the “Window” and “Technical Profiles” units. As a global company, our employees are a key priority for us. We want to create better international networks so that we can move

In 2014, a strategy process was introduced to help prepare the Greiner Group for the challenges of the future. Our clearly defined objective is more growth. The focus is not on short-term maximization of profits, but rather the long-term success of the group. Under “Plastics for Life”, the advantages of plastic – the material of the future – will be actively communicated.


Axel KühnerCEO

Hannes MoserCFO

closer together as a group despite our size and remove cultural barriers as much as possible.

Plastics for Life We concluded the vision process for 2020 with the new company vision, “Plastics for Life”. Plastics for Life will serve as our guiding prin-ciple. Our company will not survive without the use of plastic. It is important to us that we show with Plastics for Life the added value that we can create with plastic, and that we only use plastic where it is really the most practical and sensible option. In doing so, we want to raise awareness of the material, as well as pursuing our goal of relying more on sustainable product

solutions in the future. We are very aware of our responsibility for this planet. Plastic in itself if neither good nor bad. It depends what you make out of it, and how you do it!

Everyone participates in our successOur success can be traced back to our high-quality products, excellent relationships with our customers, our use of the best tech-nologies, and our entrepreneurial vision. These are qualities for which we have to thank our motivated and loyal employees, our collabora-tion with customers and suppliers based on a spirit of partnership, and the confidence of our shareholders.

Create added value through

innovative and sustainable plastic

products.

Plasticsfor Life

OUR SUSTAINABLE PACKAGING SOLUTIONS OFFER ADDED VALUE NOT ONLY FOR OUR CUSTOMERS, BUT ALSO FOR THE ENVIRONMENT.

Kyle Cookson, Decoration Technician K3®

Greiner Packaging Corp., Pittston, PA (US)


GREINER BIO-ONE STANDS FOR SAFETY AND RELIABILITY IN MEDICAL TECHNOLOGY AND DIAGNOSTICS. THIS BENEFITS RESEARCHERS, DOCTORS, NURSING STAFF, AND PATIENTS.

Dr. Sonja Kierstein, Scientist / Project Manager R&D Greiner Bio-One Diagnostics GmbH, Rainbach (Austria)


FOAM MAKES MANY AREAS OF LIFE MORE COMFORTABLE, SAFER, AND MORE EFFICIENT. WE ARE COMMITTED TO THIS GOAL.

Krzysztof Owczarek, Production DirectorEurofoam Polska Sp. z o.o., Zgierz (Poland)


REDUCING WEIGHT WHILST MAINTAINING LOAD CAPACITY AND STABILITY: THAT IS OUR CONTRIBUTION TO ENVIRONMENTALLY-FRIENDLY MOBILITY.

Dr. Markus Draxler, Head of R&D and InnovationsGreiner Perfoam GmbH, Enns (Austria)

OUR INNOVATIONS HELP PROFILE EXTRUSION CUSTOMERS TO SAVE MATERIALS, WATER, AND ENERGY.

Franz Zorn, Project Manager R&DGreiner Tool.Tec GmbH, Nußbach (Austria)

Dr. Tilman Schad

Supervisory Board

Claus Peter Bernhardt

Supervisory Board

Dr. René Wollert

Supervisory Board

Prof. DDr. Wolfgang Wiesner, PhD

Chairman of the Supervisory Board

Roland König

Supervisory Board(Employee Representative)

Hermann Hunger

Supervisory Board(Employee Representative)

Success factors: Diversifi cation, Innovation, Globalization

The Greiner Group, founded in 1868 in Nürtingen (Germany), has grown from being a grocer’s shop to a global group of companies working in plas-tics and foam. The companies in the group now

manufacture packaging for food and consumer goods, medical technology products, and foam for the mattress and furniture industry. In addition, they make equipment and tools for the profi le

COMPANY PROFILEBODIES

Erich Gebhart

Supervisory Board

Axel Kühner

CEO

Gerald Schinagl

Supervisory

Board

MaximilianGressenbauer

Supervisory Board (Employee Representative)

Hannes Moser

CFO

Dr. Ernst Bachner

Supervisory Board

Hans-JürgenSchirmer

Supervisory Board

extrusion industry as well as visible and acoustic components for the automotive industry.The key success factors include the diversifi -cation of products and markets, a continuous

innovation process, and the expansion into highly promising markets. Today, the Greiner Group employs 8,451 people at 133 locations in 29 countries around the world.

COMPANY PROFILEBODIES


CHALLENGING ECONOMIC CONDITIONS

In particular, conflict in Ukraine significantly halted economic growth in the eurozone from the middle of the year. Initially, the political hot spot affected the Central European export economy. Negative consequences were also detected in consumers’ behavior. In the first quarter of the year, the gross domestic prod-uct of all EU states increased by 0.3 per cent compared to the same period in the previous year, and decreased by 0.1 per cent in the second quarter. Towards the end of the year,

the gross domestic prod-uct rose again slightly by 0.2 per cent compared to the previous year. The European Central Bank (ECB) demonstrated a very aggressive monetary policy to counteract the economic situation. Inter-est rates were lowered

to 0.05 per cent. This was intended to put a stop to the ongoing reluctance of European industry to make investments. The European Central Bank’s expansive interest rate policy as well as a slightly lower unemployment rate in Europe sends signs of a faint revival in con-sumer behavior and, therefore, the economy. Growth in Central and Eastern Europe was

heterogeneous. Poland grew at an extremely stable rate and reported a GDP increase of around 3 per cent, caused by falling base rates and the deflation which affected the country. The inflation rate in 2014 was 0.1 per cent higher compared to the previous year. Hun-gary’s economic performance also grew well, caused by the government’s stimulus mea-sures and high levels of investments in previ-ous years. An extremely cold winter in the US restricted economic growth in the US, par-ticularly in the first quarter of 2014. Despite strong growth towards the end of the first half of the year, the US was not able to claw back the deficit caused by the winter. Growth at the end of the year was 2.3 per cent. Signs for the development of the US economy are positive. Companies are ready to invest, interest rates are cheap, and the unemployment rate is con-tinually falling; it was 5.8 per cent at the end of 2014. However, the American population shows less willingness to spend, due to higher interest rates on mortgages.In comparison to the rest of the world, the emerging markets, particularly China and India, recorded stronger performance in 2014. The above-average rates of growth recorded a few years ago were no longer possible. Growth has lost momentum. Economic growth in China, the

The growth of the world economy in 2014 was halted by several events. The year was characterized by political unrest, financial problems of EU member states, and the somewhat atypical monetary policy of the central banks.

2014 WAS SHAPED BY SEVERAL INFLU-

ENCING FACTORS THAT HALTED THE GROWTH OF THE

GLOBAL ECONOMY


largest economic power in Asia, stagnated in 2014. Economic performance fell slightly com-pared to the previous year, from 7.5 per cent to 7.1 per cent. Compared to other economic nations, however, economic growth in China is still considerable. This can be attributed to lower economic performance and particularly the decline in growth in the construction industry. The demand for property in metropolitan areas is falling for the first time in years. The result is an increase in vacancy levels and the associated increase in credit defaults. The slower economic growth had a general curbing effect on pricing trends. Production costs and sales prices did not develop in proportion with one another. Pro-duction costs rose by more than sales prices, leading to smaller sales margins. By contrast, the inexorable rise of the middle class in China secured purchasing power, which rose due to lower prices. A new government in India intro-duced several reforms to stimulate the economy. The reduction in the budget deficit, a restrictive fiscal policy, and improved investment condi-tions for both national and international com-panies showed their first positive effects in eco-nomic growth, which was just under 6 per cent in 2014. The economy in Brazil did not make the reforms necessary to stabilize economic growth due to placing too great a focus on subsidies

for low-income groups in the population. Growth reforms such as lower taxes, flexible labor mar-ket regulations, and a better infrastructure have so far been lacking, but are needed in order to give the Brazilian economy a boost. Due to pessimistic economic forecasts, the for-eign exchange markets were highly volatile in 2014. In September 2014, the ECB lowered the base rate to 0.05 per cent. In December, they decided on the most extreme monetary mea-sure in their history. Starting in March 2015, they will buy back over a trillion euros (around 60 billion euros a month) in government bonds. The EUR/USD exchange rate was highly vol-atile in 2014. At the beginning of the year, the exchange rate was just under 1.40. By the end of 2014, the euro had fallen to 1.21 against the dollar. Dollar-euro parity in 2015 is entirely real-istic. The exchange rate of the euro to the Chi-nese renminbi (CNY) changed from 8.32 at the beginning of the year to a low at the end of the year of 7.51. The Russian ruble (RUB) was also very volatile against the euro. At the beginning of 2014, the EUR/RUB exchange rate was 45.11 but had reached 70.23 by the end of the year. By contrast, the exchange rate with the Polish zloty (PLN) remained stable. At the beginning of the year, one euro was worth 4.25 zloty; at the end of the year, it was worth 4.28 zloty.


REVENUE BY COMPANY

2014 ACTUAL (2014 share of turnover in %)

in EUR millions, as per the UGB, joint ventures prorated.

* 2013 figures on a comparable basis

2014 ACTUAL (2014 share of turnover in %)

in EUR millions, as per the UGB, joint ventures prorated.


REVENUE BY REGION

2014 Share PY*

Europe 1,068 82 % +2 %

North America 107 8 % +10 %

Asia 97 7 % -1 %

South America 30 2 % +4 %

Rest of the World 19 1 % -27 %

2014 Share PY*

GHO 1,320 100 % +2 %

GPI 507 39 % +2 %

GBO 388 29 % +4 %

GFI 256 19 % +4 %

GPF 106 8 % +8 %

GTT 71 5 % -10 %

EUROPE82 %

NORTH AMERICA

8 %

ASIA7 %

SOUTH AMERICA

2 %

GPI39 %

GBO29 %

GFI19 %

GPF8 %

GTT5 %

REST OF THE WORLD

1 %


RESULTS-ORIENTED FOCUS PRODUCES SUCCESS

For the Greiner Group, the fiscal year 2014 was the most successful in their 147-year history. Globalization, focusing on core competencies, and stronger internal networking led to this result. They took into account the strategy that needed to be adopted for results-oriented growth.

In the fiscal year 2014, Greiner Holding AG, with their five divisions of Greiner Packaging Inter-national GmbH, Greiner Bio-One International GmbH, Greiner Foam International GmbH, Greiner Perfoam GmbH, and Greiner Tool.Tec GmbH, recorded the best results in their his-tory. The path that was adopted over the last few years of focusing on result-oriented growth across the whole group, proved to be successful in 2014. In the fiscal year 2014, as announced in the previous year, Greiner Bio-One International GmbH (previously Greiner Bio-One International AG) was incorporated into the Greiner Group as its fifth division. The figures reported for 2014 for Greiner Holding AG have therefore been con-solidated for the first time with Greiner Bio-One International.

Consistent revenueIn the fiscal year 2014, Greiner Holding AG generated revenue of EUR 1.320 billion, which represents an increase over the previous year (EUR 1.293 billion) of 2 per cent. The focus in the previous year was on increasing profitabil-ity and cash flow. They were able to increase

cash flow from EUR 83 million in the fiscal year 2013 to EUR 113 million (+ 36 per cent com-pared to the previous year). Investments totaled EUR 81 million and were primarily used for the acquisition and replacement of machines and equipment. In 2014, Greiner Holding had 8,451 employees, composed of 2,303 employees in Austria, 772 employees in Germany, 3,985 in the rest of Europe, 658 employees in Asia (China and Thailand), 428 employees in North America, 214 in South America (Mexico, Brazil), and 91 employees in South Africa.

Volatile movement of raw materials pricesIn the plastics and foam indus-try, Greiner Holding AG is strongly reliant on raw mate-rials extracted from crude oil. In the fiscal year 2014, prices for all the raw materials that are essential for the Greiner Group initially remained high when compared over a long period of time. At the beginning of January 2014, a barrel of Brent oil cost USD

2014 WAS SHAPED BY VOLA-TILE RAW MATERI-ALS PRICES AND A STRONG US DOLLAR


110.91 and by the middle of June had reached its peak of USD 115.01. During the second half of the year, the price of a barrel of Brent oil fell continuously. At the end of the year, the price reached its lowest level of USD 57.56 per barrel. The drop in prices can be attributed in particular to lower demand worldwide coupled with high availability. This strengthened the US dollar and caused the prices of raw materials, which are traded in US dollars, to sink continu-ously. Unusually low demand for crude oil com-pared to annual production levels also resulted in falling prices.

Divisional growth as scheduledAll divisions of Greiner Holding AG reported

positive growth in the fiscal year 2014 and were able to achieve nearly all of their revenue goals. Only Greiner Tool.Tec just missed their planned revenue goal due to market conditions in the window profile extrusion industry that continue to be challenging. Grouping together core com-petencies enabled the leveraging of additional synergies within the group. To further increase profitability, efficiency and process optimization measures were rolled out and developed across the group.

Globalization as a growth driverIn addition to innovation and diversification, expanding into new markets has for decades been one of the growth drivers of the Greiner

EMPLOYEES BY DIVISION

ACTUAL in staff numbers, joint ventures pro rata


2014 Share PY*

GHO 8,451 100 % +3 %

GPI 3,465 42 % 0 %

GBO 1,801 21 % +4 %

GFI 1,606 19 % +11 %

GPF 754 9 % 0 %

GTT 763 9 % 0 %

GPI3,465

GBO1,801

GFI1,606

GPF754

GTT763


Group. Globalization particularly focuses on emerging markets due to their rates of growth, which are still above-average compared to Europe. Talks already begun with potential partners in India, China and Brazil will con-tinue in 2015. In Fall 2014, Greiner Packag-ing International GmbH opened their first site in the US. They will supply local dairies with innovative and sustainable packaging solu-tions from the site in Pittston, Pennsylvania. Greiner is using the trend for organic yogurt to establish their plastic pot packaging solution K3® in the US.

Strategic focus on 2020One of the strategic priorities in 2014 was the development of corporate objectives that should be achieved by 2020. Over the com-ing years, revenue and employee numbers will be doubled compared to the fiscal year 2013. This ambitious goal will be achieved through organic growth as well as acquisitions in strategically important markets. Planned investments between now and 2020 will total around EUR 900 million. The 2020 strategy is coupled with the “Plastics for Life” vision. As a global company, the Greiner Group is well aware of their great responsibility in this area. With Plastics for Life, the Greiner Group is taking an aggressive approach to raise public awareness of the advantages of plastic in our daily lives. This focuses on the correct way to handle plastic and, above all, the correct way to recycle it.

Forecasts for the fiscal year 2015Continued expansion into new markets will also be a priority in the current fiscal year. Tur-key is a particularly attractive market for food packaging and is one of the targets in Greiner’s globalization strategy. The implementation and application of mea-sures to achieve our medium-term goals by 2020 will play a central part of the current fis-cal year. This includes a focus on expanding the product range in order to pave the way for organic growth by opening up new areas of the market. An additional area of focus will be innovation management, supporting the expansion of the product line. Associated with this is the continuation of the globalization strategy in personnel development, helping to prepare employees for the networking of the international sites and responsibilities. Despite the low level of raw materials, another price increase is expected before the end of the year. It cannot be assumed, however, that prices will return to the lev-els of the past two years. In the middle of the year, the sterilization company of Greiner Bio-One in Krems-münster will become oper-ational as the new Medis-can site. A total of over EUR 14 million has been invested in the development. This has taken into account the continuing rise in the number of third-party businesses in the steril-ization sector.

GREINER’S SUCCESSFUL DEVELOPMENT WILL CONTINUE IN 2015

GREINER PACKAGING INTERNATIONAL


GREINER PACKAGING INTERNATIONAL GMBH

GREINER PACKAGING IS THE EPITOME OF HIGH QUALITY PACKAGING MADE OF CARDBOARD AND PLASTIC IN EUROPE. IT IS OUR GOAL TO ACHIEVE THIS STATUS GLOBALLY.

Willi EibnerCEO Greiner Packaging International GmbH

2014 2013*

Revenue (EUR millions) 507 498

Locations 31 34


KEY INDICATORS

€



GREINER PACKAGING INTERNATIONAL GMBH

GLOBAL POTENTIALFOR MORE

Greiner Packaging is one of the world’s leading manufacturers of packaging in the food and non-food sector in Europe. To support custom-ers as efficiently as possible, the different mar-kets are managed by three divisions, K, Kavo, and Assistec. Division K produces cups and lids for the food industry, including combina-tions of cardboard and plastic. Division Kavo’s product portfolio includes packaging solutions such as plastic bottles and containers for the food, cosmetics, pharmaceutical, and chemical industries. Division Assistec focuses on the pro-duction of plastic parts and products as well as assembly and refining. They exclusively supply customers in the non-food industry. This can include the office and leisure, household and garden, health and personal care, automotive and commercial vehicle industries, as well as external packaging and logistics.

Positive business developmentIn Europe in 2014, the market for packaging was stable. The first three quarters were shaped by the high price of raw materials. There were noticeable price fluctuations in the fourth quarter, caused by difficult political and eco-nomic conditions around the world. In the fiscal year 2014, Greiner Packaging Interna-tional recorded positive sales results, with revenue of EUR 507 million. On a comparable basis, this corresponds to an increase of two per cent over the previous year.

Varied performance in Europe, first successes in MexicoAs one of the market leaders, Greiner Packaging

Greiner Packaging International reported a successful fiscal year in 2014: They consolidated their market-leading position in Europe and their entry into the US market is showing the first signs of success. Further moves towards internationalization are in the preparation stage.

THE MARKET FORPACKAGING IN EUROPE IS STABLE. THE FIRST STEPS ABROAD ARE SHOWING SIGNS OF SUCCESS

PLASTIC PACKAGING,

such as yogurt pots, protects

valuable food.


STARTING IN THEUS IS AN IMPORT-ANT STEP TOWARDS BECOMING AGLOBAL SUPPLIER

is confronted by a wide range of challenges in the European market. For example, the com-modity market on the whole is supplied with large quantities. As these are subject to some extreme fl uctuations, product planning has to ensure a high level of fl exibility.In Eastern Europe, the company enjoys a strong market position as a qualifi ed supplier of high-quality plastic packaging: The Czech site in Slušovice, for example, reported very positive developments, and the Litvinov site also proved itself to be a reliable partner in sup-plying all the large Central European dairies. The Romanian market also shows promising signs of success: Rising living standards in the region have further increased the demand for high-quality plastic packaging, which has ben-efi ted the regional site. Greiner Packaging is now the market leader in Romania. The Serbian market, on the other hand, is more strongly contested, but over the past fi scal year, several different projects were still successfully real-ized. Greiner Packaging’s intense efforts and commitment in Mexico have paid off. The con-cept of offering high-quality, technical injection molding is bearing its fi rst fruit and affords new possibilities and great opportunities for growth, particularly when it comes to servicing custom-ers from North America. However, in order to exploit the full potential of the site in the future, answers must be found to obvious skills short-ages locally. A lot of companies are competing for a few specialists. Vying for the best spe-cialists is a challenge that Greiner Packaging needs to face.

Solid start in the USOn October 29, 2014, the fi rst site in the US for Greiner Packaging was opened in Pittston. In doing so, the company has completed the next step on its journey from European to global supplier. Greiner Packaging can offer a whole range of suitable solutions, particularly to the requirements of the American dairy and food markets. The wide product range of premium packaging solutions has met with great interest, particularly the highly versatile K3® technology. The cardboard sleeve can be decorated both on the inside and outside, making it predestined for use in the highly developed US marketing system. The advantages that it offers in terms of sustainability, such as renewable raw materials, low plastic content, and a carbon footprint reduced by up to 25 per cent, all help to increase market demand. K3® products will play an increasingly important role in the future thanks to their sig-nifi cant contribution to environmental protec-tion. After the fi rst few months in the US, we can already draw a positive preliminary conclusion: Production has got off to a good start and the fi rst defi nitive projects have been realized.

The vision: Large, global marketsGreiner Packaging has set itself the task of driv-ing forward with international efforts in large markets. The expansion strategy is focusing on all emerging markets. Currently, a lot of potential


markets are being analyzed, and a possible market entry is discussed in advance as part of intensive talks with international customers. The decision to proceed with further growth is taken according to strict internal criteria and mutually agreed, strategic thinking.

Sustainability as the key for future innovationGreiner Packaging does more than just pay lip service to sustainability. An example of this is the inert barrier technology for cup packaging in the food industry which the company is initiating for the first time around the world. This applies a wafer-thin silicone layer on the inside of the plastic cup, significantly reducing the permea-bility of oxygen and water vapor. This, in turn, increases the flavor protection and the shelf life of the packaged food. An additional advantage of barrier packaging is that by maintaining or extending the shelf life, it saves on preservatives. The layer does not affect the weight of the cup or the method of disposal.

Sustainability will remain the driving factor for innovations. In 2015, Greiner Packaging will make K3® technology a development focus. The aim is to combine the advan-tages of cardboard and plastic more productively as well as to make better use of the respective advantages

of both materials. Greiner Packaging’s stake in the company Cardbox Packaging serves as a

driving force and source of inspiration that can help in the acquisition of additional knowledge and experience of the use of paper and card-board.

All-in-one concept receives “Smart Packaging 2014” awardAs with many Greiner Packaging products, con-venience and functionality are a priority with the clip-on bottle: A bottle to hold cleaning solution was specifically developed for the needs of con-tact lens wearers; the contact lens holder can be attached to the underside using the clip func-tion. For this smart idea, Greiner Packagingreceived the Austrian national award.

THE US, TURKEY, INDIA, CHINA, AND

SOUTH AMERICA, ARE THE FOCUS

OF GLOBAL DEVELOPMENT

Greiner Packaging received the Austrian State Prize “Smart Packaging 2014”, for their “All-in-one concept”.


The inert barrier technology will be implemented around the world for the first time and extends products‘ shelf life.

THE DEMAND FOR HIGH-QUALITY PLASTIC PACKAGINGIS INCREASING GLOBALLY

Functionality meets designOver the last year, working together with their customers on various packaging solutions, Greiner Packaging has proven that aesthetics and functionality can complement each other perfectly. They have been supported in this by the in-house design agency, DesPro (www. des-pro-gpi.com), who have 100 years’ experience and are totally committed to the design of plas-tic packaging and combinations. They are highly efficient in creating practical, yet aesthetically appealing, solutions for the market.

Outlook for 2015According to experts, the demand for high-qual-ity plastic packaging will continue to rise glob-ally in the coming years, caused by a growing middle class around the world and their desire for high-quality food. In order to react promptly to changes in the market, Greiner Packaging

keeps up with trends and observations, a mat-ter of course for a leading European company with global growth ambitions.In addition to expanding internationally, Greiner Packaging continues to focus on innovations as a top priority, partic-ularly in Europe, as this will help them to further expand their strong market presence in cen-tral and eastern Europe. Greiner Packaging also wants to seize the potential offered in Mex-ico, using their expertise in providing solutions and customer service. The overall aim is to maintain their position in existing markets with new product developments, and seize oppor-tunities for new products wherever they might be offered.

GREINER BIO-ONE INTERNATIONAL


GREINER BIO-ONE INTERNATIONAL GMBH

2014 WAS A SUCCESSFUL FISCAL YEAR FOR US. WE GREW ACROSS ALL AREAS AND GAINED MARKET SHARES.

Rainer PernekerCEO Greiner Bio-One International GmbH

2014 2013


Locations 23 23


€

KEY INDICATORS


GREINER BIO-ONE INTERNATIONAL GMBH

EXPANSION OF BUSINESS AREAS

Greiner Bio-One International GmbH is one of the leading companies in the areas of preanalytics, bioscience, diagnostics and sterilization. The company is divided into four business units. Preanalytics, based in Kremsmünster (Austria), develops and pro-duces sampling systems for human samples such as blood, urine, and saliva, used easily and safely in hospitals, medical laboratories and medical practices. Bioscience, based in Frickenhausen (Germany), develops and produces special products for the cultivation and analysis of cell cultures as well as micro-plates for high throughput screening. Areas of application include universities and research institutes as well as the diagnostics, phar-maceutical and biotechnology industries. The new Greiner Bio-One Diagnostics business unit, which was hived off from BioScience in

2013, is based in Rainbach (Austria) and spe-cializes in the development of new molecular analysis methods. As a key technology, DNA arrays can be used in many areas from human diagnostics to food tech-nology. For example, bacteria or viruses can be clearly identified using the specific genetic fin-gerprint, resulting in a quick, reliable diagno-sis. Mediscan, based in Kremsmünster (Austria), specializes in the sterilization of medical products and food packaging. Existing products from the range are adapted and custom products manufac-tured for OEM customers using GBO’s knowl-edge and experience.

In the fiscal year 2014, Greiner Bio-One equipped themselves for the future. Increased future demand, particularly from third-party businesses, has been taken into account, with the expansion of Mediscan already begun. The Diagnostics business unit has been further developed.

DIVISION INTO FOUR BUSINESS UNITS AS A BASIS FOR ACTIVE CUL-TIVATION AND DEVELOP-MENT OF THE MARKET AND FURTHER GROWTH

MEDICAL PRODUCTS MADE FROM UNBREAKABLE PLASTICincrease hygiene in hospitals and laboratories.


Greiner Bio-One integrated into Greiner HoldingAs announced last year, Greiner Bio-One has been incorporated as the fifth division of Greiner Holding AG. This included changing the name to Greiner Bio-One International GmbH.

Scheduled business performanceThe performance of GBO in the fiscal year 2014 went as planned and was characterized by the further expansion of the new business unit, Greiner Bio-One Diagnostics, as well as the steady improvement of their market posi-tion. In 2014, GBO generated revenue of EUR 388 million, which represents an increase of almost 4 per cent compared to the previous year (FY 2013: EUR 373 million). Foreign cur-rency fluctuations, particularly between the euro and the Chinese renminbi (yuan), the Brazilian real, and the US dollar prevented higher growth.

Positive performance in all regionsEconomic conditions in Europe were charac-terized by a consolidation, in which bioscience companies were taken over pharmaceutical groups. The Frickenhausen site (Germany) counteracted this development with new

products and was able to increase revenue by around 4 per cent compared to the previous year, similar to the division as a whole. For GBO, the market in the US is once again in a growth phase. The demand for high-quality products is growing. For the first time, Greiner Bio-One USA’s revenue exceeded USD 100 million. Investments in increased capacity were made at just the right time to support this development. There is also continuous development in South America. The produc-tion site in the US supplies preanalytics products to all South American coun-tries with the exception of Brazil. The site in Brazil also performed accord-ing to schedule. In 2015, consistently increasing demand for GBO prod-ucts for blood sampling will be met by dou-bling the production space. Completion and commissioning, however, will not take place until the 2016 fiscal year. In Asia, the target markets are China and the ASEAN countries in particular. Performance in China in 2014 was satisfactory. As part of a joint venture (Greiner Bio-One Suns), Greiner Bio-One supplied the greater Beijing and

EXPANSION OF PRODUCT SITES SECURES FUTURE GROWTH IN ALL AREAS


Shanghai areas with the VACUETTE® blood sampling system. Other products will be sup-plied to additional regions. In 2014, these channels were used to further develop distri-bution activities, amongst other things.

Performance per product groupThe Preanalytics business unit was also the strongest growth driver in 2014. Demand rose in all regions of the world that are sup-plied with these products, particularly the US and Brazil. In 2014, the e-Health segment for laboratories and hospitals was further devel-oped. Barcode labeling is done in the factory, ensuring seamless tracking and precluding the possibility of the sample being assigned to the wrong patient and another sample being required. In Bioscience, a plastic tube for bio-banks was developed that was very well received by the market. This enables long-term studies to be carried out to identify biomarkers (medical and biologically measur-able parameters for biological processes). The Bioscience business unit signed a

contract with the diagnostic company Beck-man Coulter to supply OEM products to laboratories. The product, custom-made for Beckman Coulter, was developed over two years. This large contract underlines the long-term customer relationship that Biosci-ence has with Beckman Coulter in the OEM business. In developing the Genspeed® Reader, Greiner Bio-One Diagnostics has precisely met the need of the market. The product segment fills a niche market for which continuous market growth is forecast. Further rapid tests for vari-ous areas of application can be developed on the basis of the existing product range. Compared to the previous year, Mediscan grew by one per cent over the past fiscal year, thereby achieving full capacity. In addition to gamma and eBeam technology, the expansion in capacity also fully utilized X-ray technol-ogy for sterilization. Particular features of the equipment include the fully characterized X-ray field, the highest possible dose homogeneity, and the ability to precisely apply extremely low

Reliable detection of MRSA and toxigenic C. difficile in less than 100 minutes with Genspeed®.


IN 2015, GROWTH WILL CONTINUE IN ALL AREAS

The Bioscience division develops and produces special products for the cultivation and analysis of cell cultures as well as microplates for high throughput screening.

doses, as is required to sterilize blood collec-tion tubes.

Innovative productsIn 2014, Greiner Bio-One once again brought some innovative products onto the market. With the Genspeed® C.diff OneStep, a test was developed that can detect an infection with clostridium difficile (CDI), which can lead to antibiotic-associated diarrhea, potentially to pseudomembranous colitis, and even death. It is a one-step, molecular diagnos-tic test with the motto “OneStep – one test, four results”. The test avoids the often used sequential, two-step diagnostic test proce-dures that combine different test systems and test principles. Another application of the Genspeed® test system is the Genspeed® MRSA test. This is a DNA-based, diagnostic array for qualitative detection of MRSA (Meth-icillin-resistant Staphylococcus aureus) from nasal and throat swabs within 100 minutes. It enables the detection of both known resis-tance genes, mecA and mecC.

Outlook for the current fiscal yearForecasts for the current fiscal year point to further growth. High single-digit growth in revenue compared to the previous year is expected. Investment will be a particular focus for 2015 to enable the expansion of production facilities. Firstly, the new Medis-can site will be completed and put into oper-ation. Expansion of the production space at the Hungary site also began in 2014. The new produc-tion building will be put into operation in 2015. Secondly, expansion work will start on the production site in Brazil. In order to meet increasing need, capacity for the manufacture of blood sampling products at the Monroe site (US) will be expanded. 2015 will be a year of fur-ther development of existing technologies in various product applications and the further expansion of our market presence.

GREINER FOAM INTERNATIONAL


GREINER FOAM INTERNATIONAL GMBH

HIGH-QUALITY FOAM, NICHE PRODUCTS, AND A STRONG MARKET PRESENCE; THIS IS OUR CLEAR VISION FOR THE COMING YEARS.

Manfred MarchgraberCEO Greiner Foam International GmbH

2014 2013

Revenue (EUR millions)* 256 247

Locations 50 50

Employees* 1,606 1,449

€

* Joint Ventures (Eurofoam, Unifoam) represented with a proportion of 50%

KEY INDICATORS


GREINER FOAM INTERNATIONAL GMBH

FIT FOR THE FUTURE AND READY TO CONQUER NEW MARKETS

Greiner Foam International consolidates the foam activities of the Greiner Group. Eurofoam and Unifoam, which are joint ventures, produce and process polyurethane foam for the upholstery, mattress and automotive industries in partic-ular. Greiner MULTIfoam produces composite foam and the subsidiary, GuKoTech, develops cork-rubber products. Greiner aerospace pro-duces seat and back cushions for airplane seats and Greiner PURtec manufactures foam insula-tion. For Greiner Foam International, 2014 was a time of consolidation. It was also a time when internationalization was successfully driven for-wards.

Economic environmentAs in previous years, 2014 was characterized by the high price of raw materials. This particularly

affected the foam-producing companies Euro-foam and Unifoam as well as the subsidiary MULTIfoam, which was confronted by high trim foam prices. While demand in Germany and Austria stagnated, some strong growth was seen in eastern Europe. Consumers invested in a higher standard of living.

An overview of the companiesThe Eurofoam group, a 50% joint venture with the Belgian Recticel group, had a very good year in 2014 due to the growth in Cen-tral and Eastern Europe. The sites in Poland and Romania also significantly improved their results. This positive performance will be followed by large investments in new

With more than 50 years of experience in the production and processing of foam, Greiner Foam International’s wealth of knowledge makes them ideally placed for their acquisition ambitions around the world.

IN EASTERN EUROPE, GREINER FOAM INTERNA-TIONAL CONTIN-UES TO GROW

HIGH-QUALITY FOAM

is highly versatile. It ensures a restful

sleep and provides comfort in our lives.


GREINER PURTEC AND AEROSPACE ARE EQUIPPED FOR THE FUTURE

technologies. In Austria and Germany, results also improved. However, Germany continued to be a very difficult and highly competitive market. Capacity was expanded at MULTIfoam in Poland in order to better serve increased customer demand. GuKoTech recorded very good results in 2014 and exceeded expectations. New cus-tomer projects were realized and a new product was launched, the solar mat for solar panels.

Substantial increase in output at UnifoamGreiner Foam International is very pleased with the development of the joint venture Unifoam in South Africa. In 2014, a new foaming machine was installed, all foam types were success-fully transferred to the new machine, a curing store was built, and many new processes were implemented. With some appropriate personnel adjustments and sensible management struc-tures, the team on site started the year full of motivation and focused on results.

Visible first results of the consolidationFor Greiner PURtec and Greiner aerospace, 2014 was their first year as part of Greiner Foam International. The aim was to set both compa-nies up for the future, concentrate on their core

competencies, and reduced fixed costs. At the end of the year, the results were positive and the outlook is optimistic.The strengths and weaknesses of Greiner PURtec’s product range was analyzed. As a consequence, rigid foam production at the Schwanenstadt site (Austria) and the factory in Niederdreisbach (Germany) were both shut down. At aerospace and PURtec in the Czech Republic, processes were analyzed and pro-cedures improved. The product portfolio was revised and the audiofoam product range was taken over from Eurofoam. The first process opti-mizations and adjustments in the production layout have been implemented. Further steps include modernization and, as far as possible, the automation of processes. The Greiner aerospace companies in China and the US are operating well.

New target marketsOne clear target for Greiner Foam International is Brazil. Negotiations are ongoing with a foam-ing company in the north-east of the country to take over 51% of the shares in the company. The


company’s product portfolio includes foam and mattresses. Separate from this, there are also talks with a foam producer in the south of Bra-

zil. Both companies would be interest-ing as they would provide nationwide coverage. The demand for mat-tresses and furni-

ture is significant and in the south, the automotive industry would also be an interesting customer.Greiner Foam International has already found its feet well in China. Special medical mattresses and medical products were supplied to first-class hospitals in China via the sales structures

of GBO Suns (a joint venture of Greiner Bio-One). The CFDA certification for this was achieved after intensive efforts. The next step will be to raise the consumer potential for foam with organic compo-nents and customized mattresses. Discussions and market research have already taken place in Turkey, Egypt, and South Korea.

Outlook for 2015In 2015, the Greiner Foam International busi-nesses will be affected by socio-political develop-ments within the European Union. It is expected that consumer demand will fall because con-sumers are unsettled. By contrast, the aviation industry will develop well due to the low crude oil prices and the associated low jet fuel prices.

THE FIRST STEP TOWARDS CHINA IS VERY

PROMISING. OTHERS WILL FOLLOW

Unifoam’s foaming equipment in Isithebe (South Africa) is the most modern in the country.


Many companies will invest in a new fleet or ret-rofitting of their existing airplanes. Greiner aero-space and Assistec (a Greiner Packaging division) are already exploring the possibilities of working together.In the mattress segment, the possibilities of for-ward integration will be tested together with cus-tomers. The aim is for Eurofoam not just to manu-facture the mattress core, but the whole mattress for customers.In South Africa, there is the potential for addi-tional foam types and an expansion of the mar-ket position. There are thoughts of setting up a

FURTHER GROWTH WILL BE GENERATED VIA ACQUISITIONS AND INNOVATIONS

The Eurofoam Poland site in Zgierz has become the largest production and processing plant within the Eurofoam group.

processing facility in Kapstadt or Johannesburg. Technical foam could also be marketed. Inquiries have also been received from the automotive industry.Overall, Greiner Foam International is facing the new year, with both its challenging conditions and new opportunities, with optimism. The objectives are to expand existing areas of business and set up new businesses through acquisitions and innovations.

GREINER PERFOAM


GREINER PERFOAM GMBH

2014 WAS AN EXCEPTIONALLY GOOD YEAR FOR GREINER PERFOAM. FOR THE FIRST TIME, WE GENERATED REVENUE OF MORE THAN EUR 100 MILLION.

Michael SchleissCEO Greiner Perfoam GmbH

2014 2013


Locations 6 6

Employees 754 751

€

KEY INDICATORS


SUSTAINABLE SUCCESS THROUGH EFFECTIVE OPTIMIZATIONS

Greiner Perfoam (GPF), based in Enns (Austria), is one of the leading manufacturers of interior parts and acoustic components for the pre-mium vehicle industry. Products include parcel shelves, loading space flooring, loading space covers, absorbers and encapsulations for engines, transmissions, or differentials. With 754 employees across six sites in Austria, the Czech Republic, Germany, and China, the company generated revenue in 2014 of EUR 106 million (2013: EUR 98 million). The facilities’ excellent series production capacity laid the foundations for a positive earnings performance. Great results were also achieved through structural and process optimizations. Perfoam performed well across all essential parameters (material use, personnel costs, energy use, waste, and complaints). Compared to previous years, there

were positive currency effects resulting from the weak Czech koruna against the euro.

2014 was a good year for the automobile industryDespite highly unsta-ble economic trends around the world, the automobile industry globally has reported a very good year. Growth was achieved in key markets, with the only exceptions being some European countries. In China and NAFTA countries, a real boom has begun. In 2014, China became the largest automotive market in the world. Internationally, the premium mar-ket segment particularly benefited from this

The fiscal year 2014 has been one of the most successful in the history of Greiner Perfoam. For the first time, we generated revenue of more than EUR 100 million. Productivity and earnings were substantially improved through effective structural and process optimizations.

STRONG GROWTH IN THE PREMIUM SEGMENT BENEFITS 2014 BUSINESS DEVELOPMENT


ENGINE AND TRANSMISSION

ENCAPSULATIONS

are not only effective as acoustic insulation

but also increase energy efficiency

through thermal insulation.


development, growing by 5 per cent, dispro-portionately stronger than the general automo-tive market (3 per cent). This provided Greiner Perfoam’s business development with a signifi-cant advantage, since the company focuses on the premium market segment, and, above all, includes BMW, Daimler, Audi, Jaguar and Land Rover amongst their customers. German auto-mobile manufacturers in particular are leaders in the premium segment. While the proportion of German OEMs in the global market is around 20 per cent, these companies dominate the premium segment with a market share of around 66 per cent. Greiner Perfoam expects the growth of the premium market to remain stable until 2020, at around 5 per cent per year. GPF’s market share for rear shelves in the pre-mium segment is more than 50 per cent. The company also has a considerable market share for engine and transmission encapsulations. GPF’s knowledge enables us to take a leading role in this sector.

Key area of acoustic components shows growthIn previous years, the production of interior parts was the dominant core business of Greiner Perfoam. The second cornerstone, the pro-duction of acoustic components, has recently become more significant. The components are used, among other places, in the chassis and in the engine bay, for example in the doors, in the passenger compartments or in the trunk lid in order to insulate and absorb vehicle noise

and vibrations. Engine, transmission or differen-tial encapsulations have been a technological innovation. Encapsulations for individual auto-motive parts already existed. However, because of its history, Greiner Perfoam possesses exten-sive knowledge of combining fleece and foam materials. To do this, foam material is pressed together with polypropylene natural fiber mats. In addition to noise insulation, encasing indi-vidual components has another effect. Using thermal insulation for the casing also results in increased engine efficiency. Around six years ago, the company developed the first encap-sulations for acoustic insulation with BMW and have been supplying them ever since. At the end of 2013, Perfoam and several other com-petitors received an inquiry for a large number of engine and transmission encapsulations for BMW’s large engine series. In the middle of March 2014, after intensive negotiations and various stages of devel-opment, they succeeded in winning the majority of what is a very important package for them. Series production deliveries will start in 2015.Greiner Perfoam is meeting planned growth in the acoustic components segment by expand-ing the capacity of the Linz site. Two production buildings will be taken over from neighboring Greiner MULTIfoam so they can handle orders that have already been fixed for the next few years.

ACOUSTIC COMPO-NENTS BECOME A GREATER PROPORTION OF OVERALL REVENUE


Acquisition goals for 2014 exceededThe fiscal year 2014 was also a good year when it came to acquisitions. We easily exceeded our defined goals. As well as the acoustic package for BMW’s large engine series, Greiner Perfoam

also won the tender for the loading space covers for the new Bentley SUV. Even though this order doesn’t involve large quantities, it proves the confidence that companies have in Per-foam’s high quality and on-time delivery. The com-

ponent being manufactured for Bentley is the

most high-end and expensive in the history of GPF. Small-scale production also included the transmission encapsulation for the Mercedes AMG GT. This order is also highly significant as it represents the acquisition of another cus-tomer in the acoustic encapsulation segment in addition to BMW. Until now, it was mainly rear shelves that were produced for Daimler. Audi also commissioned Greiner Perfoam to develop encapsulations. The order from Tesla Motors for the loading space cover for the new SUV Model X constitutes a volume of around EUR 25 million between now and 2020. The order was placed at the beginning of October 2014 and Tesla wants to start series production for the

PERFOAM PROFITED FROM NEW ORDERS

FROM BMW, BENTLEY, DAIMLER,

AND TESLA

In the fourth quarter of 2014, an attractive new customer was won in the form of Tesla. Perfoam is making the loading space cover for the Model X. Series production is scheduled to start in July 2015.


new vehicle in July 2015. This short develop-ment time is rather unusual in the industry but underlines the flexibility of Greiner Perfoam. Dis-cussions about further orders for other model series are already taking place. BMW placed an order for the acoustic insulation package for the successor to the BMW 5 GT. For this project, Greiner Perfoam will work closely with Eurofoam, the joint venture of Greiner Foam International.

Premium for premiumWith the 2020 Vision, “Our core products make us the most powerful partner for premium auto-mobile manufacturers in the acoustic and interi-ors segment,” GPF is clearly positioning itself as the premium supplier for premium OEMs for the coming years. The company is heavily focused on the main trends in the industry. Greater effi-ciency has been one of the market’s essen-tial requirements for the last few years. Greiner Perfoam has responded to this with lighter com-ponents which must also meet high requirements in stability and load-bearing capacity. For this, there is an increasing focus on carbon fiber materials. The first production orders for this are already expected to arrive in 2015. Another trend that Perfoam is dealing with is electric vehicles. Geo-graphically, the direction of the automotive market is clearly towards NAFTA countries and China, which are the largest markets, particularly in the premium segment. Greiner Perfoam intends to support their customers in these growth markets. The site in China will be adapted for this develop-ment and Mexico will be evaluated as the site for the North American market, in order to maintain proximity to the premium OEM customers who are planning to develop significant capacity there over the coming years.

NAFTA COUNTRIES AND CHINA ARE GROWTH DRIVERS IN THE PRE-MIUM SEGMENT

Perfoam will make the loading space cover for the new Bentley SUV. The component is the most expensive in the history of the company.

GREINER TOOL.TEC


GREINER TOOL.TEC GMBH

WE RESPOND ACTIVELY TO STRUCTURAL MARKET CHANGES BY CONSIS-TENTLY FOCUSING ON OUR GROWTH POTENTIAL AND CLEAR STRATEGIES.

Gerhard OhlerCEO Greiner Tool.Tec GmbH

2014 2013*


Locations 10 12

Employees 763 764

€


KEY INDICATORS


POSITIVE OUTLOOK DESPITE CURRENT CHANGES IN THE MARKET

Greiner Tool.Tec (GTT) is one of the world’s leading companies in the manufacture of tools, machines and complete equipment for profile extrusion. The group has more than 10 sites and 763 employ-ees. Since 2012, Greiner Tool.Tec has been orga-nized in two divisions: Working alongside Greiner Extrusion, the “Window” division focuses on the core business and produces tools, machines and equipment for the manufacture of window pro-files from PVC (polyvinyl chloride) in the premium and medium product sector. In the Technical Pro-files division (previously “Non-Window”), Greiner Tech.Profile manufactures tools, machines and equipment for the production of technical profiles. This mainly includes cable ducts, but also gutter-ing, profiles for the construction and automotive industry, and wood-plastic composite products such as decking and fences.

Difficult market conditions affect business activitiesThe fiscal year 2014 was particularly affected by the unfavorable market conditions in the window profile market, the company’s core business. Greiner Tool.Tec generated revenue in 2014 of EUR 71 million, which represents a fall of 10 per cent compared to the fiscal year 2013. Despite this fall, the company was largely able to achieve their earnings targets. The fall in revenue can be attributed to the saturation in the key markets of China and Rus-sia. The number of window profile extruders is declining there, as is this type of project business. In addition, the demand for

In the fiscal year 2014, the adverse global situation in the window profile market had a significant impact on Greiner Tool.Tec revenue. The Technical Profiles division and the components business performed exceptionally well.

FEWER NEW WIN-DOWS FACTORIES BUT 2014 EARN-INGS GOALS STILL REACHED


WITH THE RED.LINE SYSTEM

from Greiner Extrusion, more than 80 per

cent of the energy needed for profile

extrusion can be saved.


plastic windows in China in the last few years has been steadily decreasing because their quality, compared to windows with aluminum frames, did not meet the criteria demanded by the market.

Selective growth in EuropeOver the last fiscal year, the business develop-ment of the eight largest window profile manu-facturers produced a very mixed picture. How-ever, revenue results in the key account segment were significantly above forecast figures. While the market in Europe is generally stagnating, there has been selective growth in Great Britain, Ireland, and Poland. In these markets, the level of investment in the window profile segment is above average. In particular, Poland and other Eastern European countries such as Romania and Bulgaria made the most of the relevant Euro-pean Union funding. Over the last few years, this has enabled Poland to become one of the main window profile extruders. Greiner Extrusion is also involved in this trend.

Positive developments in North AmericaAfter Asia and Europe, North America is the third largest market for Greiner Tool.Tec. In the US, 2014 saw more than 1 million private homes were constructed, the first time in years that the million mark has been exceeded. This level of construction activity is reflected in the extremely positive results of both companies in the US, Greiner Extrusion US in Meadville (Pennsylvania) and Automated Extrusion in Minneapolis (Min-nesota). These businesses made an exceptional

contribution to divisional earnings in 2014. During the last fiscal year, Greiner Extrusion US also won two new machine customers and one new tool customer. In addition, with the support of Auto-mated Extrusion, the company developed a new tooling standard for fence profiles. One of this tool’s best features is its high level of robustness.

MID.POWER TOOLING for the mid-range performance segmentTo expand the lower end of the product portfolio, Greiner Extrusion developed an efficient tool for the mid-range performance segment in window profile extrusion. The MID.POWER TOOLING (MPT) tool solution will be man-ufactured using Austrian technology at the site in Shanghai (China). Over the last fiscal year, the site in Shanghai was completely converted to MPT and recorded strong results.

Positive developments in Technical Profiles divisionThe comparatively new Technical Profiles division performed well in only its second full fiscal year, significantly exceeding the revenue forecast for 2014. This is all the more remarkable as Greiner Tech.Profile (GTP) vacated their site in Pettenbach (Austria) during the previous fiscal year and made a complete switch to the Tool.Tec headquarters in Nußbach (Austria). GTP’s customers include,

THE AMERICAN MAR-KET DEVELOPED POS-ITIVELY DUE TO INCREASED CON-STRUCTION ACTIVITY


amongst others, the main cable duct manufac-turers. In the future, the company wants to further expand other product ranges and achieve greater distribution synergies with the Window division.

Components business becomes more significantIn addition to the two main market segments, “Window” and “Technical Profiles”, the compo-

nents business of the GPN (Greiner Produc-tion Network) is also becoming increasingly significant. The compo-nents business supplies metal-finished tooling to

customers, who then carry out their own internal optimization. In the 2014 fiscal year, this segment performed extremely well, significantly exceed-ing revenue and earnings goals. This result can be attributed to an investment in sales activities. Active market strategies were crucial to the suc-cess, particularly in the Technical Profiles seg-ment. Currently, the majority of customers are still in Europe. Due to increased sales activities, however, the radius is set to increase. GPN also recorded success through the ongoing

optimization of internal processes, resulting in a clear improvement in on-time delivery in 2014. In terms of personnel, the company can reflect on national recognition for two apprentices. In the future, the company will continue with the recently introduced idea of sending apprentices and trainees abroad for several weeks.

Energy efficiency has top priorityAs part of their 2020 Vision, Greiner Tool.Tec has set itself the goal of advancing into new TECHNICAL PROFILES

DIVISION SIGNIFICANTLY EXCEEDED FORECAST

REVENUE FOR 2014

Using flow.control, the speed of the profile extrusion can be controlled, resulting in signifi-cant material savings.


markets and increasing their market share. Key topics include energy efficiency and conserving resources. Several years ago, in line with this trend and the idea of “Plastics for Life”, GTT developed effective energy-saving systems, which met with great interest from customers. GESS, the Greiner Energy Saving System, can save more than 80 per cent of the energy used in profile extrusion. The co-extrusion procedure, in which several materials are used, helps to reduce material consumption and introduces the use of recycled materials. Innovations such as flow.con-trol and PDC (Post-Dry-Calibration) tanks result in improved profile quality and minimal water con-sumption. These systems are an essential part of the new RED.LINE extrusion system but can also be retrofitted to existing equipment if required, resulting in the maximum amount of flexibility.

Promising markets in India and Central AsiaDespite the difficult global situation in the markets, Greiner Tool.Tec can see signs of positive devel-opments in India, Kazakhstan, and Uzbekistan.

One example of a great success is an order for 12 lines from Uzbekistan. Greiner Tool.Tec con-tinues to have good contact with its customers in Russia and Ukraine, which are successfully manufacturing window profiles despite the diffi-cult political situation. In terms of strategy, GTT will increasingly expand the components busi-ness as well as the service and replacement parts business.

OutlookIn order achieve the growth objectives defined in the vision, specific strategies were developed in 2014 to enable Greiner Tool.Tec to respond to structural changes in the market. In 2015, this means expanding activities in the mid-range market segment, expanding the replacement parts and service businesses, advancing into the tech-nical profile segment and, in the medium-term, expanding into new areas of business within the extrusion industry.

In the US, the company developed a tool for the extrusion of fence profiles that have a particularly high level of robustness.

COMPONENTS, REPLACEMENT PARTS, AND SERVICE BUSI-NESSES BECOME MORE SIGNIFICANT

100%

50%

9

0%

greiner packaging slusovice s.r.o.Czech Republic 100 %

Greiner Packaging GmbHAustria 100 %

Greiner Bio-One GmbHAustria 100 %

Greiner Bio-One GmbHGermany 100 %

Mediscan GmbHAustria 100 %

Mediscan GmbH & Co. KGAustria 100 %

greiner packaging s.r.o.Czech Republic 40.09 %

GREINER PACKAGING Sp. z o.o.Poland 37.7 %

Greiner Packaging LimitedUK 50 %

Greiner Packaging Kft.Hungary 56.05%

Greiner Packaging S.R.LRomania 100 %

OOO Greiner PackagingRussia 51 %

TOV Greiner PackagingUkraine 100 %

Greiner Real Estate Vermietung St. Gallen GmbH Austria 0.8 %

Greiner Assistec GmbHAustria 100 %

greiner assistec s.r.o.Czech Republic 10 %

greiner packaging holding agSwitzerland 100 %

AS Greiner PackagingEstonia 100 %

Greiner Assistec S.R.L.Romania 100 %

Greiner Packaging d.o.o.Serbia 100 %

greiner packaging agSwitzerland 100 %

Rundpack AGSwitzerland 100 %

Greiner Packaging GmbHGermany 100 %

Greiner Packaging Distribution SARLFrance 100 %

Greiner Packaging B.V.Netherlands 100 %

GPIGreiner Packaging International GmbHAustria 100 %

GREINER GMBH Germany

GHOGreiner Holding AG Austria

GREINER K.G. Austria

59.91%

62.3%

4

3.95

%

Cardbox Packaging Slusovice s.r.o.Czech Republic 49 %

Mould & Matic Solutions s.r.o.Czech Republic 49 %

THRACE GREINER PACKAGING S.R.L.Romania 50 %

TOV Greiner Real EstateUkraine 100%

Greiner Assistec, S. A. de C. V.Mexico 100 %

Calix d.o.o. Croatia (in liquidation) 70 %

Greiner i JP Packaging d.o.o.Serbia 51 %

Greiner Packaging d.o.o.Slovenia 51.84 %

Greiner Packaging Corp.USA 100%

Greiner Packaging Vertriebs GmbHGermany 100%

GFIGreiner Foam International GmbHAustria 100 %

GBOGreiner Bio-One International GmbHAustria 100 %

EUROFOAM Polska Sp. z o.o.Poland 100 %

Eurofoam GmbHAustria 50 %

EUROFOAM Hungary Kft.Hungary 100 %

Porolon TzOVUkraine 95 %

S.C. EUROFOAM S.R.L.Romania 100 %


S.C. FLEXI MOB TRADING S.R.L.Romania 50 %

Caria Sp. z o.o.Poland 51 %

EUROFOAM Sunderi d.o.o.Serbia 100 %

Poly spol. s. r. o.Slovakia 100 %

PPHiU „Kerko“ Sp. z o.o.Poland 51.72 %

UAB LITFOAMLithuania 60 %

„EUROFOAM-KALININGRAD“ LLC Russia 100 %

EUROFOAM Bohemia s.r.o.Czech Republic 100 %

BPP spol. s.r.o.Czech Republic 51.37 %

EUROFOAM B. V.Netherlands 100 %

SINFO spol. s.r.o.Czech Republic 51 %

EUROFOAM TP spol. s.r.o.Czech Republic 80 %

Eurofoam BG oodBulgaria 100 %

KFM-Schaumstoff GmbHGermany 100 %

Eurofoam Industry s.r.o.Czech Republic 100 %

EUROFOAM Deutschland GmbH SchaumstoffeGermany 100%

Greiner MULTIfoam GmbHAustria 100%

Greiner Foam South Africa (Pty) Ltd.South Africa 100%

Greiner MULTIfoam Sp. z o.o.Poland 100 %

Unifoam (Pty) Ltd.South Africa 50 %

GuKo Tech GmbHGermany 100 %

Parabel J.V.Belarus (in liquidation) 58 %

Greiner PURtec CZ spol. s.r.o.Czech Republic 100 %

Greiner PURtec GmbHGermany 100 %

Greiner PURtec GmbHAustria 100 %

Greiner aerospace CZ spol. s.r.o.Czech Republic 100%

Greiner aerospace Inc.USA 100 %

Greiner Aerospace (Shanghai) Co., Ltd.China 100 %

Greiner aerospace GmbHAustria 100 %

Greiner Bio-One Hungary Kft.Hungary 100 %

Greiner Bio-One North America, Inc.USA 100 %

Greiner Bio-One North America Sales Corp. USA 100 %

Greiner Bio-One France S.A.S.France 100 %

Greiner Bio-One Brasil Produtos Medicos Hospitalares Ltda. · Brasil 100 %

Greiner Bio-One VACUETTE Schweiz GmbHSwitzerland 100 %

Greiner Bio-One Brasil Service Tech Sistemas, Produ-tos E Servicos para saude Ltda. · Brasil 100 %

Greiner Bio-One (Thailand) Ltd.Thailand 100 %

Greiner Bio-One Suns Co., Ltd.China 51 %

Greiner Bio-One India Private LimitedIndia 51 %

Greiner Bio-One Ltd. UK 100 %

Greiner Bio-One Co. Ltd.Japan 98.33 %

Greiner Bio-One B.V.Netherlands 100 %

Greiner Bio-One Diagnostics GmbH Austria 100 %

Greiner Bio-One BVBABelgium 100 %

Greiner Real Estate GmbHAustria 100 %

Greiner Group Services s.r.o.Czech Republic 100 %

Greiner Enterprise Management Consulting (Beijing) Co. LTd. China · China 100 %

Greiner Real Estate s.r.o.Czech Republic 100 %

Greiner Real Estate Sp. z o.o.Poland 100 %

Greiner Real Estate VermietungSt. Gallen GmbH · Austria 99.2 %

SCI Greiner Real EstateFrance (in liquidation) 100 %

GPFGreiner Perfoam GmbHAustria 100 %

Greiner perfoam spol. s r.o.Czech Republic 100 %

Greiner Perfoam GmbHGermany 100 %

Greiner Perfoam GmbHGermany 100 %

Greiner Perfoam Automotive Interior Systems Shenyang Co., Ltd. · China 100 %

As of 12/31/ 2014

GHOGreiner Holding AG Austria

OOO Greiner Real EstateRussia 100 %

2

8%

10%

GTTGreiner Tool.Tec GmbHAustria 100 %

Greiner Extrusion GmbHAustria 100 %

GPN GmbHAustria 100 %

Greiner Extrusion US, Inc. USA 100 %

Greiner Extrusion Technology [Shanghai] Co., Ltd.China 100 %

Greiner Tech.Profile GmbHAustria 100 %

GPN strojirna s.r.o.Czech Republic 90 %

France Filières Plastiques S.A.S.France 90 %

Solufip S.A.S.France 24 %

Automated EDM, Inc.USA 100 %

vendor finance GmbHAustria 49 %

GFIGreiner Foam International GmbHAustria 100 %

EUROFOAM Polska Sp. z o.o.Poland 100 %

Eurofoam GmbHAustria 50 %

EUROFOAM Hungary Kft.Hungary 100 %

Porolon TzOVUkraine 95 %



S.C. FLEXI MOB TRADING S.R.L.Romania 50 %

Caria Sp. z o.o.Poland 51 %

EUROFOAM Sunderi d.o.o.Serbia 100 %

Poly spol. s. r. o.Slovakia 100 %

PPHiU „Kerko“ Sp. z o.o.Poland 51.72 %

UAB LITFOAMLithuania 60 %

„EUROFOAM-KALININGRAD“ LLC Russia 100 %

Greiner Technology & Innovation GmbHAustria 100 %

Greiner Renewable Energy GmbHAustria 100 %

Production

Distribution

Administration and Leasing

EUROFOAM Bohemia s.r.o.Czech Republic 100 %

BPP spol. s.r.o.Czech Republic 51.37 %

EUROFOAM B. V.Netherlands 100 %

SINFO spol. s.r.o.Czech Republic 51 %

EUROFOAM TP spol. s.r.o.Czech Republic 80 %

Eurofoam BG oodBulgaria 100 %

KFM-Schaumstoff GmbHGermany 100 %

Eurofoam Industry s.r.o.Czech Republic 100 %

EUROFOAM Deutschland GmbH SchaumstoffeGermany 100%

Greiner MULTIfoam GmbHAustria 100%

Greiner Foam South Africa (Pty) Ltd.South Africa 100%

Greiner MULTIfoam Sp. z o.o.Poland 100 %

Unifoam (Pty) Ltd.South Africa 50 %

GuKo Tech GmbHGermany 100 %

Parabel J.V.Belarus (in liquidation) 58 %

Greiner PURtec CZ spol. s.r.o.Czech Republic 100 %

Greiner PURtec GmbHGermany 100 %

Greiner PURtec GmbHAustria 100 %

Greiner aerospace CZ spol. s.r.o.Czech Republic 100%

Greiner aerospace Inc.USA 100 %

Greiner Aerospace (Shanghai) Co., Ltd.China 100 %

Greiner aerospace GmbHAustria 100 %

Legal Notice

Owners, editors and publishers:Greiner Holding AGGreinerstraße 704550 Kremsmünster, AustriaConcept, design, editing: Group CommunicationsImages: Bentley Motors, Greiner Group, iStockphoto.com, Robert Maybach, Tesla MotorsTel.: +43 7583 7251-60301Fax: +43 7583 [email protected]

Note

The commercial rounding of numbers may lead to slight calculation differences. The actual development of future-related statements may deviate from stated expectations.

GREINER GROUP ANNUAL REPORT 2014 · GROUP STRUCTURE GREINER HOLDING AG Kremsmünster, AT –...

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