The Vorwerk Annual Report 2OO9 - vorwerk-thermomix.pl · Vision and Principles of the Vorwerk Group...

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The Vorwerk Annual Report 2OO9

Transcript of The Vorwerk Annual Report 2OO9 - vorwerk-thermomix.pl · Vision and Principles of the Vorwerk Group...

Page 1: The Vorwerk Annual Report 2OO9 - vorwerk-thermomix.pl · Vision and Principles of the Vorwerk Group 10 Fit for the Future 11 Thanks and Outlook 12 Direct Sales, Vorwerk Kobold 14

T h e V o r w e r k A n n u a l R e p o r t2 O O 9

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R E P O R T O N T H E 1 2 6 T H F I N A N C I A L Y E A R

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Come closer ...

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C O N T E N T S

A Review of Vorwerk 4

Management Report 2009 8

General Section on Business Development 8

Vision and Principles of the Vorwerk Group 10

Fit for the Future 11

Thanks and Outlook 12

Direct Sales, Vorwerk Kobold 14

Direct Sales, Vorwerk Thermomix 18

Direct Sales, JAFRA Cosmetics 21

Direct Sales, Lux Asia Pacific 22

Vorwerk Engineering 24

akf group 27

HECTAS Facility Services 28

Vorwerk Carpets 30

Human Resources 32

Assets, Financial and Earnings Situation 34

Opportunities and Risks 36

Consolidated Financial Statements 2009 39

The Main Companies in the Vorwerk Group 50

Sources / Imprint 52

Some like to move in close; for others, another person’s touch is like holy water to the devil. Our comfort zone when it comes to physical proximity varies greatly from one person to the next.

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H e a d O f f i c e o f t h e Vo r w e r k G r o u p ( H o l d i n g C o m p a n y )

Vorwerk & Co. KG

Mühlenweg 17 - 37

42270 Wuppertal, Germany

Telefon +49 202 564-0, Telefax -1301

www.vorwerk.de / www.vorwerk.com

Dr. Jörg Mittelsten Scheid, Wuppertal (Chairman)

Prof. Dr. Pius Baschera, Schaan/Liechtenstein

Günther Busch, Mülheim/Ruhr

Dr. Axel Epe, Düsseldorf

Dipl.-Ing. Rainer Christian Genes, Stuttgart

Verena Klüser, Munich

Jens Mittelsten Scheid, Munich

Karen Schmidt-Paas, Neuss

E x e c u t i v e B o a r d

Peter Oberegger (Managing Partner)

Walter Muyres (Managing Partner)

Reiner Strecker (Executive Board since 1 March 2009,

Managing Partner since 1 January 2010)

Eberhard Pothmann (until 28 February 2009)

Jochen Sarrazin (until 30 April 2009)

S u p e r v i s o r y B o a r d

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Subsidiarie s : Austria, Belgium, Brazil, China, Czech Republic, Dominican Republic, France, Germany, Hungary, Indonesia, Italy, Japan, Luxembourg, Mexico, Netherlands, Philippines, Poland, Portugal, Russia, Singapore, Spain, Switzerland, Taiwan, Thailand, United States of AmericaDistributors: Argentina, Australia, Azerbaijan, Brunei, Canada, Columbia, Croatia, Cyprus, Ecuador, England, Estonia, Finland, Greece, Hong Kong, Ireland, Israel, Kazakhstan, Latvia, Lebanon, Lithuania, Malaysia, Morocco, New Zealand, Norway, Peru, Scotland, Slovakian Republic, Slovenia, South Africa, South Korea, Sweden, Turkey, Ukraine, United Arab Emirates, Vietnam

A R E V I E W O F V O R W E R K

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The Vorwerk Group comprised the following business segments in the year 2009:

Direct Sales, Vorwerk Kobold Direct Sales, Vorwerk Thermomix Direct Sales, JAFRA Cosmetics

Direct Sales, Lux Asia Pacific in Asia Direct Sales, Vorwerk Feelina (until 31 January 2009) akf Financial

Service HECTAS Facility Services Vorwerk Carpets

A R E V I E W O F V O R W E R K

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Key Figures for the Vorwerk Group (not including the akf group)

in million 1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Balance sheet Total 1,028 1,062 1,150 1,204 1,756 1,693 1,725 1,643 1,648 1,734

Partners’ Equity 548 547 568 607 686 750 796 809 856 920

Partners’ Equity in % 53 52 49 50 39 44 46 49 52 53

Financial Assets 144 146 147 144 144 47 52 27 53 67

Other Fixed Assets 78 73 81 69 465 461 438 418 422 427

Current Assets 804 841 922 985 1,136 1,162 1,218 1,183 1,164 1,221

Liquid Resources 542 525 609 666 688 710 723 640 600 670

Capital Investments* 25 27 37 20 33 38 26 27 48 45

Depreciation* 29 26 27 25 35 47 41 39 38 39

Personnel Costs 351 370 405 401 434 448 455 436 452 466

Number of Employees 15,031 19,458 19,516 20,039 23,011 23,163 22,628 22,570 22,255 21,580

Self-employed Advisers 22,904 25,864 26,695 26,986 463,136 464,342 510,857 543,415 555,718 589,251

Group Sales (incl. sales tax) 1,243 1,218 1,231 1,287 1,594 1,772 1,836 1,777 1,832 1,826

New Business, akf group** 289 303 339 348 480 409 507 546 605 451

Total Business Volume 1,532 1,521 1,570 1,635 2,074 2,181 2,343 2,323 2,437 2,277

* Without financial investments ** Included in the consolidated statements at equity, 2004 with a 15-month business period

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Vorwerk Group: Business Volume 2009

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

7

akf group 20% (1 451 m)

Carpets 3% (1 70 m)

Lux Asia Pacific 1% (1 34 m)

Kobold 31% (1 695 m)

Thermomix 19% (1 420 m)HECTAS Facility Services 9% (1 195 m)

Other (1 22 m)

JAFRA Cosmetics 17% (1 390 m)

Business Volume in million 1

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G e n e r a l S e c t i o n o n B u s i n e s s D e v e l o p m e n t

The Vorwerk Group in its 126th year was also affected by the implications of the global

financial and economic crisis. The business volume in 2009, which comprises turnovers arising

from products and services as well as the new business transacted at akf group, fell by 7 percent as

against previous year to 2.277 billion euros. A quite diverse picture emerges, however, when the

individual divisions are considered. Direct sales, the core competence of the Vorwerk Group, had

an overall growth in sales of 1 percent. In contrast, there was a decline at Vorwerk Carpets as well

as in the level of new business at akf group. HECTAS Facility Services also recorded a slightly

lower turnover figure, but was generally able to maintain its position in difficult circumstances.

The versatile kitchen appliance Thermomix was the most successful division within

the Vorwerk Group in 2009 with sales reflecting a strong level of growth. International business

with Kobold vacuum cleaners could also be further improved. The strong euro had a negative

impact on JAFRA Cosmetics, although it developed well in terms of local currency. In this respect,

the Mexican sales organisation was again able to increase sales as against previous year, but this

effect was nullified due to the great fluctuations in the exchange rate between the Mexican peso

and euro when consolidated into the Group’s figures.

Vorwerk generally took advantage of 2009 to set the course for profitable growth in the

future. In the company-wide “Fit for the Future” project, the Vorwerk Group specifically prepared

itself for the implications of the financial crisis with internal measures aimed at saving costs and

improving efficiency across the board. The Vorwerk Group will emerge stronger from the finan-

cial and economic crisis.

The results at Vorwerk did not quite reach the level of previous year in a generally difficult

economic situation. However, the Group continues to be profitable and has high levels of liquidity

with an equity capital ratio of 53 percent. Vorwerk specifically used the entrepreneurial scope

that derives from this to invest e.g. in new cosmetics manufacturing facilities in Mexico.

More than 611,000 persons were working for Vorwerk worldwide in 2009. This was an

increase of 6 percent over the previous year. Over 589,000 of these people were self-employed

advisers and consultants in direct selling. More and more people are taking the opportunities

that Vorwerk creates as one of the leading direct sales companies to further their own personal

evolvement and career. Direct selling offers attractive career openings and adequate scope

for individual, entrepreneurial development. Increasing numbers of women in growing and

M A N A G E M E N T R E P O R T

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Nearness wandered in a daze…Ever in a pointless haze,

Yellow and yellower grew her gaze,As chill fever her eyes did glaze.

Yet one night as she was sleepingTo her bedside came a-creeping

One who spoke, “Rise, as you live, I am the categorical comparative!

I will make you even nearerYes, and if you will, the nearest!”And nearness, seeing all the clearer

Stitched up her fate as nearest dearest.

Though nearness ever nearer grew,

Far she erred from her set path

and finally only recalled or knew

That all the above was just a laugh.

Free

tra

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of “

Die

Näh

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Mor

gens

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ness

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emerging countries recognise the possibility of greater, personal independence by committing

to the direct selling of high quality products. The chance of determining for oneself the level of

income and of making a considerable contribution to the family income are aspects that are being

taken advantage of more and more.

Anyone wishing to make a career in direct selling may rely worldwide on the Vorwerk

Group of companies. Continually improving awareness for both the umbrella brand as well as

the product trademarks, in Germany alone some 98 percent of people know the brand Vorwerk;

the high quality of the products as well as the accepted sales systems ensure that contacts between

advisers and customers are fair. Committed and motivated persons are still required in all areas

of the Vorwerk direct sales activities.

Direct contact to customers is and remains the

typifying feature of all companies in the Vorwerk Group. Elements of direct selling and the direct

approach to customers are even essential aspects of the business models at akf group, HECTAS

Facility Services and Vorwerk Carpets.

The Vorwerk Group is sub-divided into eight divisions and has its own companies in

25 countries. Additionally, Vorwerk products are available in 35 more countries. Management

Boards are responsible for running the respective divisions.

Strategic leadership for the entire Vorwerk Group is the responsibility of the Holding

Company in Wuppertal. Further progress was made in 2009 to internationalise the divisions.

Turnover achieved outside Germany is some 63 percent; in terms of direct selling, it is even as

high as 82 percent.

V i s i o n a n d P r i n c i p l e s o f t h e Vo r w e r k G r o u p

At the beginning of 2009 Vorwerk clearly positioned itself and expressed its clear commit-

ment to direct selling with its newly formulated vision statement: “We want to become a global

leader in all of our direct sales activities.” The point in time had been deliberately chosen: it is

particularly in economically challenging times that it is important to reflect on core values and to

orient decisions to them. In this respect, the principles of the Vorwerk Group were linguistically

revised. They constitute the framework for cooperation and our daily actions at Vorwerk. The

principles are:

M A N A G E M E N T R E P O R T

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C u s t o m e r F o c u s

Direct contact with our customers is the heart of our business. We know their needs

and expectations better than anybody else and we excite them with our specially tailored

products and services.

C r e a t e E n t r e p r e n e u r s h i p

We offer attractive career opportunities and room for entrepreneurial development.

We provide optimum conditions to nurture the growth of our employees and

sales partners. Our cooperation is grounded in trust, honesty, fairness and respect.

E x c e p t i o n a l Q u a l i t y

Vorwerk stands for quality and innovation in all of our products, services and

sales activities. We set the standards for our markets.

T h i n k a n d A c t f o r t h e L o n g Te r m

A long-term mindset, strategic planning and sustainable activities have been

the hallmarks of our family business since its foundation in 1883. We invest in the future

of our employees and sales partners and are committed to our communities

and the environment.

O p e n t o C h a n g e

Our readiness for change ensures our lasting success in business and society.

F i t f o r t h e F u t u r e

The Group-wide project “Fit for the Future” was initiated in 2009 as a reaction to the

expected fall in turnover and income as a result of the implications from the economic and

financial crisis. The project stands in particular for measures aimed at reducing costs which

should primarily be achieved by improvement of processes and structures as well as by enhanced

efficiency. The Holding Company as well as all the divisions have committed to individual targets

and assured implementation by the end of 2011. The consequence of this has been a reduction in

working places in some divisions. Balance sheet provisions were made for restructuring measures

at Vorwerk Germany.

One of the objectives of the project is to establish more pronounced cost awareness within

the Vorwerk Group. The balancing act between cost saving on the one hand and investment

capability on the other has been successfully negotiated.

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M A N A G E M E N T R E P O R T

T h a n k s a n d O u t l o o k

It is particularly in turbulent times that the commitment and motivation of staff and

advisers are eminently important for the development of a company. The Executive Board would

like to thank all “Vorwerkers” around the world for their special commitment in the business

year under review. The good and trustful cooperation at Vorwerk is an essential precondition for

ensuring that the forthcoming challenges can be successfully overcome.

Vorwerk intends to once again increase the volume of business and income level in the

coming years and so return to the successful course pursued before the onset of the economic

and financial crisis. In this respect and with a clear orientation to direct selling, entrepreneurship

among advisers, management and staff acting in their own responsibility will play a decisive

role. A revision of the global brand strategy has been initiated. Implementation is continuing

and will provide additional synergies. The most urgent assignment for management everywhere

is to overcome the consequences of the world economic crisis. It will be decisive for the success

of the Vorwerk Group to always keep the income and career opportunities for consultants and

advisers attractive and to optimise them if need be – as is the case currently at Kobold Germany.

This is a never-ending process at a direct sales company. In the service sector – i.e. at HECTAS

and akf group – as well as at Vorwerk Carpets, an upturn in the economy will lead to new growth

opportunities. These companies have also used the crisis year 2009 to reposition themselves and

to streamline structures and processes, thereby creating the preconditions for renewed growth.

Vorwerk kept to its conservative investment policy and optimised the opportunity/risk portfolio

by adding new investment categories.

Divisional turnover (incl. sales tax) in million 1

2006 2007 2008 2009

Direct Sales 1,555.7 1,495.5 1,530.5 1,540.1

Division Kobold incl. Fitted Kitchens* 746.9 686.7 695.8 695.4

Division Thermomix 291.1 330.8 386.2 419.8

Division Feelina** 3.7 3.8 3.3 0.9

Division JAFRA Cosmetics 447.2 432.2 409.1 390.2

Division Lux Asia Pacific 66.8 42.0 35.9 33.8

HECTAS Facility Services 187.6 186.6 201.2 195.1

Vorwerk Carpets 74.1 77.9 79.1 69.5

Others 18.2 16.9 21.1 21 7.

Group turnover 1,835.6 1,776.9 1,831.7 1,826.4

New business. akf group*** 507.0 546.1 605.1 451.0

Total business volume 2,342.6 2,323.0 2,436.8 2,277.4

*Fitted Kitchens until 30 June 2008 ** Feelina until 1 January 2009 ***akf group included in the consolidated statements at equity

These days, not even the shirt on your back can save you from revealing the naked truth.

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Yes,

we

scan

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D i r e c t S a l e s , Vo r w e r k K o b o l d

The Vorwerk Kobold vacuum cleaner enables optimum deep-down cleaning and care

for various types of carpeting and furniture. Vorwerk vacuum cleaners stand traditionally for the

very highest quality. They are convincing thanks to their superior suction and filter performance

on carpets and hard floors, are easy to handle and simple to use. The upright vacuum cleaner

Kobold and the Tiger canister-type version that is available in some markets are highly regarded

and appreciated by customers. The Kobold in Italy – under the brand name of “Vorwerk Folletto” – is

the undisputed market leader.

The Kobold Division held up well in the year under review despite the generally diffi-

cult economic circumstances. Sales increased slightly as against previous year (without Fitted

Kitchens) by 1.7 percent and are now running at 695 million euros.

The sales company Vorwerk Folletto achieved a

distinct increase in Italy, the strongest Kobold sales organisation worldwide. Turnover rose by

6 percent to 397 million euros. Vorwerk Folletto therefore demonstrated most impressively the

power that a well-functioning direct sales system can develop even in times of widespread

economic recession. Vorwerk Folletto advertised the career opportunities in direct selling in

various media and by so doing intentionally set itself apart from other companies that had to lay

off staff. The successful increase in personnel that resulted form this was reinforced by the launch

of the new Vorwerk Kobold VK 140 in connection with the likewise newly-developed hard floor

attachment HD 40. Folletto benefitted both from the new, innovative appliances as well as from

targeted measures aimed at enhancing customer focus. The VK 140 is sold in Italy with a new

“all inclusive” package. This comprises improved service with an extended warranty period of

five years and better provision of customers with consumables.

M A N A G E M E N T R E P O R T K O B O L D

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Blushing, he glides where’er she moves

Her greeting can transport him.

Blushing, she glides where’er he movesHis greeting can transport her.

Bas

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Fri

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carefully approach

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In Germany, the second largest market in the Vorwerk Kobold Division, sales fell by

6 percent and levelled out at some 200 million euros. The reasons for this trend – persisting now

for some years – are not only to be found in the economic crisis, but are especially linked to the

still ongoing new alignment of the business model at Vorwerk Kobold Germany. The strategic

new orientation of the German Kobold sales organisation was started in 2008 and is currently

being resolutely implemented. In this respect, it is primarily modified consumer desires that are

being taken into account. The adviser in the new system is responsible for a defined area and in

this way becomes their direct contact person. Periodic campaigns, a customised product portfolio

and regular service will enhance trust in Vorwerk products and lead to a growth in turnover with

each customer mid-term. It is the target of Vorwerk Kobold to become the most customer-friendly

direct sales organisation in Germany.

The sales organisations in China and the

Czech Republic were able to continue their constant, positive development of recent years. Turn-

over in China rose by 6 percent in local currency and – when converted into euros – by as much

as 14 percent as against previous year and is now running at 32 million euros. The generation

change in management at the Chinese company was successfully negotiated. This means that the

course has been set for a continued and sustainable positive development in China.

Sales in the Czech Republic increased by 10 percent in local currency and achieved this

in spite of a transition to a new sales system. This country, with a total volume of 14 million euros,

is meanwhile fifth in terms of the highest-selling Kobold organisation.

M A N A G E M E N T R E P O R T K O B O L D

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On the other hand, there were setbacks in both Spain and Russia. Both countries have been

more affected by the international financial crisis than others. The decline in turnover in Russia of

46 percent in local currency and 56 percent in euros is due to a rapid rise in unemployment and

the associated high level of uncertainty among potential customers. Against this background the

plans to expand business from Moscow to other cities have initially had to be postponed.

Spain was impacted earlier than other European countries and particularly severely by

the implications of the crisis. The notable and very distinct reluctance of customers to consume

led to a drop in sales of almost 15 percent to 13.5 million euros. However, short-term, sales-

supporting campaigns were successful in maintaining the staffing level and the high motivation

of the self-employed commercial agents. This was the foundation upon which a new alignment

of the business model was also begun in Spain.

Austria successfully managed to implement a modern business model. A positive business

development could be recorded here for the first time in recent years with an increase in turnover

of 7 percent. France is also on the plus side: an extension of the product portfolio, intensive

customer loyalty programmes and the higher number of persons in the sales force provided

distinct impulses for growth.

By contrast, however, business with distributors suffered, i.e. independent sales partners

in those countries where Vorwerk does not have its own company.

The Kobold Division has created important preconditions for a long-term positive deve-

lopment with the strategic measures introduced over the past two years and the new alignment

of the business model. The focus of activities within this context is clearly on the strengthening

and further development of the existing sales companies.

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M A N A G E M E N T R E P O R T T H E R M O M I X

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D i r e c t S a l e s , Vo r w e r k T h e r m o m i x

A convincing product and attractive career opportunities, particularly for women,

constitute the foundations for the successful development of the Thermomix Division. Thermomix

is a versatile kind of “all-rounder” in the kitchen: fresh ingredients bring out the flavour and

delicious meals are created in an instant. Gentle steam cooking using the Varoma attachment

means that vegetables, fish and meat can unfold their true flavour, whilst largely preserving the

nutrients. In this respect, Thermomix is the ideal companion for a balanced, fresh and healthy

diet. Increasingly more people worldwide continue to enthuse about this unrivalled kitchen

appliance that only reveals its benefits and superior potential at a demonstration in the customer’s

home by one of the comprehensively trained representatives. In professional kitchens, too,

Thermomix is assuming an ever more important role and is an absolutely indispensable unit in

the kitchen of an increasing number of head chefs.

In the year under review, the Thermomix Division most impressively managed in almost

all markets to continually improve the sales value drivers of recruitment, activity and productivity

of the representatives while reducing fluctuation at the same time. Turnover increased by

8.7 percent against previous year, with a likewise improved income situation. The growth in sales

in France was outstanding (+ 51 percent), but there was also a clear increase in Portugal, Italy,

Germany as well as in the distributor business.

In 2009 the Italian Vorwerk Contempora was just ahead in the never-ending contest to

take first place as the largest Thermomix company. Thermomix Spain achieved second place

again. Vorwerk Contempora could again improve on the turnover record set in the previous

year by 8.3 percent to a current total of 124 million euros. The sales organisation in Spain had

to battle against the implications of the economic crisis far more than other European countries

had to. The reluctance of consumers to spend as a consequence of this led to a decline in sales of

5.9 percent to 96 million euros. Structural adjustments will be necessary to again strengthen the

Spanish business and to make it more robust with respect to external influences.

If it falls in your neighbour’s garden, it’s his. German saying

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M A N A G E M E N T R E P O R T T H E R M O M I X

Following the outstanding improvement in turnover

of more than 60 percent in 2008, Thermomix Germany managed to increase sales by another

7.1 percent. At the same time the German company attained third place among the largest

Thermomix companies with a total sales volume of 71 million euros. The success story of past

years was also continued in Portugal. Revenues from sales improved here by more than 15 percent

to over 29 million euros.

The recipe for success for the Thermomix sales organisations lies, in particular, in a

sustained concentration on the core business: the care and support of new and successful

representatives. Such high growth rates are quite possible even in difficult economic conditions

when supported with clever and targeted sales promotion campaigns. The sales model for

Mexico, still a relatively young sales company, will need to be better adapted to suit local

circumstances. The company – similar to the Taiwanese sales organisation – was not able to

fully meet the expectations.

Taiwan was seriously impacted by the economic crisis, something that did not remain

without implications for the Thermomix sales operation. A cautious optimisation of the business

model was initiated and will help to put the still young Taiwanese sales organisation on the path of

growth once again. The Thermomix Division benefits from a cross-border, uniform understanding

of “Best Practice” and the willingness to resolutely apply proven strategies.

The export business with independent sales partners, so-called distributors, likewise

contributed to the positive development of the Thermomix Division. An increase in turnover

of 22 percent to currently almost 12 million euros is proof of the growth potential of this type of

business in countries in which Vorwerk has not established any sales companies of its own. This

business model will continue to be driven forward following, for instance, a strategic partnership

being concluded in 2009 with a large and successful direct selling company in Malaysia.

The Thermomix Division will continue to pursue international growth in the coming

years, and besides expanding existing markets, it will assign far greater priority and significantly

more management attention especially to the economic areas of Asia and the Americas.

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D i r e c t S a l e s , J A F R A C o s m e t i c s

“The Power To Transform Lives” – this statement is right to the point and represents the

business model of JAFRA Cosmetics in a single sentence. The core business at JAFRA Cosmetics,

a part of the Vorwerk Group since 2004, is an attractive offer – mainly for women – to further their

personal development and to achieve a self-determined income by directly selling high quality

cosmetics. JAFRA operates internationally, but has a focus in Mexico and the home market of

USA. Depending upon the country and the cultural background, flexible sales systems are used

in which a JAFRA consultant presents products either at a sales party or person-to-person con-

sultation meeting and sells them directly to the customers. The range comprises facial and body

care, colour cosmetics, fragrances and spa products. Overall, the cosmetics segment is one of the

fastest growing in direct selling.

In 2009 JAFRA Cosmetics was able to further increase its sales activities, particularly

in Mexico and the USA. Nevertheless, turnover fell in comparison to the previous year by

4.6 percent to almost 390 million euros. This decline was due to successive devaluations of the

Mexican peso. Indeed, the traditionally strong sales organisation in Mexico was able to increase

turnover by 6 percent in local currency and bring the number of consultants to a new record level

of 488,000. This is all the more remarkable since, in the year under review, Mexico was not only

severely affected by the economic crisis, but it also had to overcome the outbreak of the so-called

“new influenza” and a difficult security situation, especially in the northern part of the country.

JAFRA is the undisputed No. 1 in the Mexican cosmetics market and enjoys an extremely high

reputation.

JAFRA Cosmetics has two sales organisations in the USA, each separately serving the

respective English and Spanish-speaking markets. It is particularly in the Spanish-speaking

community that the newly introduced incentive and management programmes have resulted

in a distinct upward trend. An increase of 7 percent could be achieved in the USA, with a sales

volume of 56 million euros – and this after years of falling turnover. The expectations could not

be completely fulfilled on the European market. Whereas JAFRA was able to grow by 6.7 percent

both in Italy and the Netherlands, Germany and Switzerland lost business volumes despite some

organisational changes. Business remained stable to a large extent in Austria. Turnover at the

European companies totalled 25.3 million euros and was therefore somewhat below the level of

previous year.

2 1

M A N A G E M E N T R E P O R T J A F R A C O S M E T I C S

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2 2

Brazil is among the new markets for JAFRA Cosmetics and already

surpassed expectations in its first year. JAFRA sees great potential for the future in this third

largest direct sales market in the world and the largest in Latin America.

JAFRA is represented in a total of 17 countries either through its own companies or

distributors. Expansion into India was prepared following a joint-venture with a strong partner

company. Sales activities in India will commence in the middle of 2010.

All JAFRA products are developed in the company’s own R&D facilities at its headquarters

in Westlake Village, California, in close cooperation with laboratories in the USA, France,

Switzerland, Germany and Italy. A newly developed luxury facial care range was just as successful

in its year of launch in 2009 as the long awaited men’s care series.

After only twelve months of planning and construction, the new cosmetics manufacturing

facilities in Querétaro, Mexico, could be completed towards the end of 2009. The investment of

more than 30 million US dollars will ensure a higher product quality and delivery reliability for

JAFRA Cosmetics. The space available at the industrial park in Querétaro will enable further

expansion phases in coming years.

JAFRA Cosmetics continues to target the positioning of its brand and has created the

basis for an enhanced market image with newly formulated corporate principles as well as a new

vision and mission statement. A strategy for digital media was agreed in 2009 and implemented

at the start of 2010 with the launch of a new website.

D i r e c t S a l e s , L u x A s i a P a c i f i c

Vorwerk primarily sells water purifiers and vacuum cleaners in the Asian area under the

brand name of Lux. The Lux Asia Pacific Division achieved a turnover volume of 33.8 million

euros in the year under review, which was 6 percent below previous year. Besides the implications

of the financial and economic crisis, this decline was mainly due to the still ongoing restructuring

of the sales activities. The number of advisers on file fell in almost all markets, something which

could be partially balanced by an increase in their activity. In Indonesia, the largest sales country

MANAGEMENT REPORT JAFRA COSMET ICS / LUX AS IA PACIF IC

Dietmar was so improbably filthy that even the water in the shower refused to go anywhere near him.

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2 4

at Lux Asia Pacific, turnover declined to 11.4 million euros. Vorwerk has set the course for new

growth in this segment with targeted investments, e.g. a new computer-aided ERP (Enterprise

Resource Planning) system could be successfully installed in Indonesia.

In Japan, the second largest direct sales market in the world after the USA, the first steps

were taken to integrate the Lux Asia Pacific company there into the Kobold Division. Similarities

in the business model and the associated synergy effects were the background for this decision.

Further, Vorwerk expects better market opportunities: demanding Japanese consumers associate

high quality with German brands.

Lux Asia Pacific is focussing on a new product strategy for the coming years. Besides the

segment for high-ticket products, in the future Lux Asia Pacific will develop and launch ranges

of good quality that appeal to price-sensitive consumer groups. The Asian markets continue to

have increasing significance for the Vorwerk Group and marked growth rates are expected in the

future given the new product strategy and a general economic revival.

Vo r w e r k E n g i n e e r i n g

The Vorwerk Engineering Division manufactures products exclusively for the Vorwerk

direct sales organisations and is therefore dependent upon the development of sales at those com-

panies. The main facilities of Vorwerk Engineering are in Wuppertal, Germany, with production

and R&D. Other Vorwerk manufacturing sites are located in Cloyes (France), Arcore (Italy) as

well as in Shanghai (China). The Vorwerk direct sales system requires special products: the high

Vorwerk quality as well as the specific, appropriate features needed for customer demonstrations

present Vorwerk technicians with ever new challenges. Engineers at R&D need to have the

capability of always being able to readapt to the requirements of the direct sales organisations

and at the same time to have the particular benefits of the products for the customers constantly

in mind. This explains the depth of manufacturing operations at Vorwerk Engineering that relies

on its own competence in vital core areas such as injection moulding or motor production.

M A N A G E M E N T R E P O RT L U X A S I A PA C I F I C / E N G I N E E R I N G

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“Why travel to distant shores when evil is so close at hand.”

Ludwig Marcuse

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2 6

Contrary to original planning, the falling sales figures, particularly at the Vorwerk Kobold

Division, led to a tense employment situation in the production area. The Wuppertal location was

mainly affected by this and was compelled to introduce short-time working in some sections in

the year under review. The establishment of a so-called “solidarity fund” – financed to one half

by staff and to the other by the owner family – meant that the social hardship resulting from the

measures could be cushioned for those concerned. The development of sales at Lux Asia Pacific

– likewise falling short of expectations, particularly for water purifiers – led to capacity utilisation

problems at the Shanghai facilities. By comparison, the situation at the production location for

Thermomix, Semco in France, continues to be good due to the growing Thermomix business.

Engineering’s main projects in 2009 were mainly focussed on the launch of the

innovative Kobold vacuum cleaner VK 140 as well as the hard floor appliance HD 40. The lead

technology model was successfully implemented with the launch of the HD 40 and failure-free

production could be started at the series manufacturing location in Italy after completion of the

development phase in Wuppertal. The modifications to the manufacturing area and the produc-

tion start-up phase for the new main product, the Kobold VK 140, also went according to plan

in Wuppertal.

In view of the tense sales situation management at the Vorwerk production locations

also adopted and implemented cost reduction programmes as a part of the “Fit for the Future”

project. Besides a renegotiation of material prices and the exploitation of general rationalisation

potential, the investment policy was revised and more precisely defined. Here it is a case of being

prepared to meet any special challenges. A more intensive cross-linkage, particularly between

R&D and manufacturing, is aimed at greatly improving the innovative potential. In this respect,

continued targeted investment in people and engineering will be necessary. On the other hand,

savings potential has to be identified to ensure the overall economic efficiency.

M A N A G E M E N T R E P O R T E N G I N E E R I N G

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a k f g r o u p

The leasing sector was considerably affected by the implications of the financial and eco-

nomic crisis in the year under review. In particular, the shortage of liquidity constituted a partial

bottleneck for transacting new business. Some competitors were unable to close their refinancing

gaps and had to withdraw from the market. Thanks to akf group’s excellent and longstanding

connections, the resources needed to refinance business were always available, despite the loss of

one significant refinancing partner. akf received a particular acknowledgement when it was afforded

the opportunity of issuing an AAA-rated ABS bond with a total volume of 280 million euros. akf

presented itself to potential end customers in the finance sector as well as dealers and manu-

facturers as a reliable and competent partner in 2009. The company's own booths at important

lead fairs and exhibitions such as the Boat Show in Düsseldorf and the International Automobile

Exhibition in Frankfurt (IAA), underline customer proximity and expertise for the business

segment.

Overall, though, there was a decline in the volume of new business at akf group with com-

panies in Germany, Spain and Poland as a consequence of the economic crisis and the parallel

development in demand for investment goods. New business levelled out at 451 million euros,

following 605 million euros in previous year. akf group is predominantly a lessor and financer

of mobile assets, in particular cars and industrial goods. Particularly small and medium-sized

enterprises, the core of akf’s business, refrained from investments in plant and equipment in

2009. However, even the finance of new vehicles as part of the vendor business for dealers was

26 percent below previous year with a volume of 176.2 million euros. The so-called “Abwrack-

prämie” (German government scrap car deal) was unable to generate any special impulses since

small and mid-range cars benefitted most from this programme. In addition, there was increased

demand for contract prolongations, a reaction mainly from commercial customers to the more

intense pressure on costs.

Cooperation with the British premium manufacturer Aston Martin developed positively,

with German contractual partners being offered vehicle leasing and finance transactions from a

single source under the exclusive quality seal “Assured“. akf is currently on the point of extending

this cooperation into Spain and Poland.

M A N A G E M E N T R E P O R T A K F G R O U P

2 7

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2 8

The level of new business archieved in these two rather new markets for akf group was

27.9 million euros (Spain) and 13.6 million euros (Poland). This means that the proportion of

business transacted abroad by akf group remains unaltered at 9 percent of the total volume. akf

plans to expand into other European countries against the background of taking on the consumer

finance business for customers at the Kobold and Thermomix Divisions.

akf group is included in Vorwerk’s consolidated financial statements at equity.

H E C TA S F a c i l i t y S e r v i c e s

HECTAS Facility Services continued to resolutely implement its strategic alignment as a

highly professional, industrial service company in the sector of infrastructural facility management

in 2009. Overall, the European market for infrastructural facility management declined across

Europe. HECTAS had to accept a fall in sales turnover of 3 percent to 195 million euros in this

difficult environment. This decline resulted from a reduced level of performance being demanded

by existing customers. Concerted support for these customer resulted in HECTAS being able to

keep them on the books. Besides intensifying customer loyalty in the year under review, the focus

of the sales activities was on winning new accounts. Generally speaking, the sales performance

could be significantly improved in 2009, albeit at a low sales volume per customer.

The main projects in 2009 focussed on cushioning the implications of the financial

and economic crisis. In this respect, particular attention was paid to the above-mentioned

extension of the sales activities, more intensive customer support and optimisation of cost

structures. Targeted PR and market communication campaigns have improved brand awareness

and further developed the qualitative perception of the HECTAS trademark.

M A N A G E M E N T R E P O R T A K F G R O U P / H E C TA S

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“Kiss me, or I will kiss thee!” Johann Wolfgang von Goethe

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3 0

M A N A G E M E N T R E P O R T H E C TA S / C A R P E T S

In Germany – HECTAS’ largest market – the impact from the loss in turnover in the

previous year and the reduced customer base showed their effects. Despite an enhanced sales per-

formance, the loss in sales volume could not be fully compensated. HECTAS Germany therefore

suffered a fall in turnover of 3.3 percent and achieved an overall volume of 86.4 million euros.

On the other hand, business in the Benelux countries could be kept stable, particularly

through the acquisition of new accounts. The opening of operations in Luxemburg in the year

under review means that HECTAS has now entered its eighth European country.

Larger losses in turnovers were recorded in Austria (minus 8.6 percent) as well as in

Eastern Europe (minus 18 percent), the latter being due among other things to the negative

development of the local currencies.

The number of staff at the HECTAS Group fell slightly in the year under review

when regarded in terms of the overall sales volume. HECTAS sees attractive opportunities for

the future development of the company given the continuing consolidation of the markets for

infrastructural facility management in Europe. Against the background of a mid- and long-term

growth strategy, the chosen approach of targeted and resolute process optimisation will convince

existing and new customers of HECTAS’ service portfolio. The current uncertainty about the

general economic development, however, does mean that further expansion into new European

countries is being pursued with a certain degree of reserve.

Vo r w e r k C a r p e t s

Vorwerk Carpets – with a consistently positive development in recent years – suffered

particularly from the crisis in 2009. The entire western European carpet industry experienced a

considerable collapse at an unforeseeable pace. Due to its niche position in the segment for high-

price and high-quality carpeting, Vorwerk Carpets could still do relatively well in comparison to

competitors. However, a decline in turnover of 12 percent to 69.5 million euros when compared

with previous year could not be avoided. The contract business and exports were most seriously

affected. By contrast, business with the trade in Germany was only a little below the level of

previous year.

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Often it is distance and not proximity that opens

up new perspectives.

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3 2

Vorwerk Carpets reacted to the slump in sales with structural adjustments, short-time

working and other measures aimed at reducing costs at the plant location in Hamelin. The future

prospects for business depend very much on trends in consumption as well as on developments

in the construction and investment segments. Given their strong brand and the innovative

products, Vorwerk Carpets look confidently into the future with a generally higher level of

business activity.

In this respect, the outstanding quality of the products and the innovative power at

Vorwerk Carpets continue to play a significant role. A distinct revival in business is expected, in

particular, from the new, innovative textile tile concept “Scale – TEXtiles Collections by Hadi

Teherani“. Vorwerk is then the first to break with the conventions of previous carpet tile collections

and open up new horizons in interior decoration in terms of creativity, function and design.

H u m a n R e s o u r c e s

The number of people working for Vorwerk worldwide continues to grow. In 2009 an

average number of some 611,000 people were active either as permanent employees or as self-

employed advisers and sales partners for the companies of the Vorwerk Group. The number of

permanent employees fell slightly to 21,580 due to structural adjustments associated with the “Fit

for the Future” project. In contrast, the number of self-employed advisers rose further to over

589,000, something that was attributable to a distinct increase in the number of representatives

and consultants at JAFRA Cosmetics in Mexico and Vorwerk Thermomix.

The Vorwerk Group offers attractive career opportunities and scope for entrepreneurial

development. Vorwerk’s approach to meeting the ever-increasing challenges posed by a constantly

changing market environment is a centrally-steered and integrated talent-management pro-

gramme across all divisions. A decisive factor in this is the hiring of new management personnel

for the Vorwerk direct selling organisations. Only if suitable personalities can be recruited for

sales activities in the future will it be possible to develop potential growth perspectives. Vorwerk

attaches great importance to cooperation based on trust. The respectful and fair way of dealing

M A N A G E M E N T R E P O R T C A R P E T S / H U M A N R E S O U R C E S

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with one another is a core value of the family-owned company. The successful recertification

within the scope of the “Career and Family” audit again acknowledged the family-friendly

personnel policy. The encouragement of a work-life balance for staff, the open communication

across individual divisions and hierarchies and, if required, the arrangement of flexible working

hours or location are some of the most important fundamental elements in this respect. The

desires and requirements of staff are taken seriously. The satisfaction of staff is evaluated every

two years in an international employee survey. The regular survey began towards the end of the

year under review and will be concluded in 2010.

3 3

Staff (annual average) 2006 2007 2008 2009

Direct Sales

Division Kobold 4,413 4,562 4,625 4,416

Division Thermomix 914 968 954 1,062

Division Feelina 27 23 23 7

Division Lux Asia Pacific 3,701 3,439 2,411 2,241

Division JAFRA Cosmetics 1,454 1,543 1,635 1,726

HECTAS Facility Services 11,653 11,558 12,105 11,647

Vorwerk Carpets 337 342 352 345

Others 129 135 150 136

Total* 22,628 22,570 22,255 21,580

Self-employed sales advisers (annual average) Division Kobold 10,398 9,736 9,335 9,140

Division Thermomix 14,614 16,361 18,569 20,670

Division Feelina 284 280 152 4

Division Lux Asia Pacific 3,177 1,887 1,799 1,622

Self-employed sales advisers ”household appliances“ 28,473 28,264 29,855 31,436

Self-employed sales advisers JAFRA Cosmetics 482,384 515,151 525,863 557,815

Self-employed sales advisers in total 510,857 543,415 555,718 589,251

akf group** 212 250 220 216

Total Vorwerk Workforce 533,697 566,235 578,193 611,047

of which sales advisers 514,046 546,897 558,872 592,322

*Including employed sales advisers **akf group included in the consolidated statements at equity

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3 4

M A N A G E M E N T R E P O R T F I N A N C E S

A s s e t s , F i n a n c i a l a n d E a r n i n g s S i t u a t i o n

The assets situation of the Vorwerk Group, with an increase in balance sheet total of

86 million euros is characterised by the liquid resources (cash at bank and marketable securities)

and partners’ equity.

The liquid resources reported amount of 670 million euros and clearly exceeded the inter-

est-bearing external resources of 259 million euros. The market value of our liquid funds con-

tinues to be well above the book value. The proportion of partners’ equity rose to 53 percent.

An increase in provisions for pensions – in particular due to the application of a lower

discount rate – as well as in short-term obligations towards third parties resulted in liabilities

towards affiliate companies decreasing by 18 million euros and by 26 million euros towards banks

on account of scheduled repayments of loans. The partners’ equity fully covers the long-term fixed

assets. Moreover, current assets are funded to 35 percent through equity long-term.

Tangible assets increased as a result of investments, e.g. in manufacturing (Mexican plant);

on the other hand, stock levels were systematically reduced across various areas of the Vorwerk

Group so as to lower the resources tied up there.

Vorwerk Direct Selling Ventures also continued its adopted strategy in the year under

review with the acquisition of two new participations. The objective of Vorwerk Direct Selling

Ventures is to support the growth of young, innovative direct sales companies with minority share-

holdings. In this respect, it is a case of identifying new trends in direct selling and of continuing

to advance them with targeted exchange of know-how.

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A s a family-owned company Vorwerk attaches great importance to remaining

financially independent. The growth of the Vorwerk Group should be financed from the company’s

own resources. There are also always sufficient financial resources available for investments or

any eventual acquisitions. Vorwerk traditionally pursues a rather conservative and risk-related

investment strategy with the target of securing the assets long-term without neglecting the return.

This form of risk-control proved particularly successful in the crisis and will be extended further.

There is an internal Finance Committee to monitor market developments, financial trends and

to prepare decisions regarding the investment strategy. The parameters for such an investment

strategy are set by the Executive Board and approved by the Supervisory Board.

The portfolio was supplemented with new investment categories as part of the permanent

investment strategy review process so as to improve the opportunity/risk profile. The proportion

of liquidity was increased so that financial obligations could always be met despite the crisis. In

the past Vorwerk has always refrained from structured products and will continue to do this in

the future too. This strategy has proved itself over years and was reaffirmed through the crisis.

The financial obligations could be reduced as scheduled on due dates, something that is also to

continue in the future.

The 2009 business year at the Vorwerk Group was impacted by the implications of

the global financial and economic crisis. Group sales of 1,826 million euros were approximately

at the level of the previous year.

Expenditures on materials declined by 7 percent due to lower exchange rate-related

procurement prices and reduced raw material prices. The increase in personnel costs despite a

drop in the number of employees was mainly due to a reassessment of the value of the pension

obligations.

Some quite remarkable developments on the capital markets could be observed in the

year following the onset of the financial and economic crisis. The steep downturn in the economy

continued in the first quarter of 2009 and resulted in clearly falling share prices, interest rates

and US dollar quotations. The downward trend could be halted when the concerted effort by

governments and central banks came into effect. The global share markets have been recovering

since April 2009 and have consequently developed positively.

3 5

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3 6

These developments among other things meant that income from interest fell compared

to the previous year, although there was a higher level of liquid resources. The cost of interest was

lower, in particular due to the 3-million euro reduction in the level of financial obligations. The

earnings situation of the Vorwerk Group was also positively affected by the results of akf group

reported under the “Participations in associated companies” item and in comparison to previous

year from the lower levels of write-downs on financial assets and securities. The earnings situation

was affected negatively in 2009 by a retrospective tax legislation amendment in Mexico.

O p p o r t u n i t i e s a n d R i s k s

Vorwerk is a very diversified Group with regard to its business segments, products and

countries. Great opportunities are offered particularly in direct selling. This form of sales is a

dynamic sector of the economy that is growing globally. Vorwerk combines various forms of

direct selling worldwide “under one roof”. The more diversified structure in terms of business

segments as well as countries means that Vorwerk has great opportunities to participate in the

positive development of the markets in the future as well.

At the same time, the Vorwerk Group is exposed to a range of diverse risks. Effective

planning, reporting and monitoring systems have been put in place in the individual companies to

protect against risks. In principle, uniform guidelines apply across all divisions. They are defined

by the Executive Board at Vorwerk & Co. KG and are monitored in the form of a reporting process

to ensure they are adhered to. The processes are continually reviewed – even in manufacturing

– and adjusted when risks are identified.

The investment strategy at the Vorwerk Group is rather traditional and primarily pursues

the target of securing the assets long-term without neglecting the opportunities for return. This

fundamental approach leads to a form of risk-minimisation that proved particularly successful in

2009. The internal Finance Committee regularly reviews the investment strategy with the aim of

avoiding identified risks. To further improve the opportunity/risk profile, the portfolio was sup-

plemented with new investment categories. Risks ensuing from exchange rate fluctuations were

also taken into consideration and hedged as far as possible for operative business activities.

M A N A G E M E N T R E P O R T F I N A N C E SFrom top left, reading left to right: fish tail, baseball, red cabbage, dandelion seeds, lily stamen, strawberry, chameleon, fish scales, lichen, lily blossom

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If you can’t recognize

too close.

you may be

any of these things,

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So near and yet so far ...

Opportunities and risks for the future development of the Vorwerk Group arise from the

focus on direct selling. The great opportunities offered by this sales channel are to be seen against

the background of specific risks – which may be subdivided into three groups.

Firstly, direct selling is dependent on the general legislative conditions that are, in prin-

ciple, amendable to the disadvantage of the company. The proportion of direct sales is relatively

low when seen against the overall level of sales by the trade. This could lead to a lack of perception

among legislators at national and international level. Vorwerk therefore runs PR campaigns

targeted at decision-makers, is a member of associations such as Direct Selling Europe (DSE) and

maintains its own information bureau at the European Union in Brussels.

Secondly, in some Vorwerk divisions there is a large, unbalanced dependency on the

development of individual country companies. The Vorwerk Group will therefore continue to

advance internationalisation – a path already taken – so as to have a wider spread of the risks

involved.

Thirdly, the future development of the Vorwerk Group is very much dependent on the

recruitment and training of management staff in direct selling.

A centrally-steered, talent-management programme and a group-wide personnel policy

based on uniform guidelines take this factor into account.

From today’s point of view there are no risks that could have a negative impact on the

long-term existence of the Vorwerk Group. In recent years the high equity ratio and the improve-

ment in the worldwide strategic position have led to the creation of higher, risk-covering volumes.

Moreover, this broad base on the global market means that Vorwerk is generally well protected

against implications for the enterprise ensuing from problems experienced in regional, industry

or product-specific areas.

3 8

M A N A G E M E N T R E P O R T F I N A N C E S

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Consolidated Balance Sheet 40

Consolidated Profit and Loss Account 42

Movements in Fixed Assets 44

Explanatory Notes 46

Auditors’ Report 49

C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S 2 0 0 9

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4 0

C O N S O L I D AT E D B A L A N C E S H E E T

As at 31 December 2009

Assets 31.12.2009 31.12.2008

1 000 1 000

A. Fixed Assets I. Intangible Assets 1. Concessions, patents, trademarks and similar rights

as well as licences thereto 12,845 13,569

2. Goodwill 272,756 283,952

3. Payments on account 1,167 250

286,768 297,771 II. Tangible Assets 1. Land, land rights and buildings,

including buildings on third-party land 51,981 47,613

2. Technical plants and machinery 49,137 36,692

3. Other fixtures, fittings and office equipment 30,687 28,661

4. Payments on account and assets under construction 8,194 10,910

139,999 123,876 III. Financial Assets 1. Participations in associated companies 49,269 43,799

2. Other participations 8,378 5,458

3. Long-term investments 9,232 3,096

4. Other loans 316 335

67,195 52,688 Fixed Assets 493,962 474,335B. Current Assets I. Inventories 1. Raw materials and consumables 22,855 27,421

2. Work in progress, services in progress 6,070 6,967

3. Finished products and merchandise 55,836 70,760

4. Payments on account 322 68

85,083 105,216 II. Receivables and other Assets 1. Trade accounts receivable; 379,711 373,310

of which with a remaining term of more than 1 year: (1,244) (1,290)

2. Accounts receivable from associated companies 11,945 10,643

3. Other assets; 74,498 78,375

of which with a remaining term of more than 1 year: (2,268) (2,035)

466,154 462,328

III. Other Securities 418,426 402,517

IV. Cheques, Cash in Hand, Bank Balances 251,345 194,015 Current Assets 1,221,008 1,164,076C. Prepaid Expenses and Deferred Charges 8,114 6,872 D. Deferred Tax Assets 11,073 2,980 1,734,157 1,648,263

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4 1

Equity and Liabilities 31.12.2009 31.12.2008

1 000 1 000

A. Partners’ Equity 1. Capital shares, reserves, capital contributions

of silent partners, net profit of parent company 919,211 854,761

2. Minority interests

in capital and reserves 344 470

in profits 670 491

1,014 961 920,225 855,722 B. Provisions and Accruals 1. Provisions for pensions and similar obligations 118,672 105,664

2. Provisions for taxes 25,774 23,033

3. Other provisions and accruals 149,672 142,375

294,118 271,072C. Liabilities

1. Amounts payable to banks; 174,259 199,896

of which due within 1 year: (49,111) (28,976)

of which due after more than 5 years: (0) (15,000)

2. Advance payments received 18,903 18,217

of which due within 1 year: (2,335) (1,953)

of which due after more than 5 years: (0) (0)

3. Trade accounts payable; 48,913 44,294

of which due within 1 year: (48,718) (44,157)

of which due after more than 5 years: (0) (0)

4. Notes payable; 93 77

of which due within 1 year: (93) (77)

5. Amounts payable to associated companies; 2,071 20,490

of which due within 1 year: (2,071) (20,490)

6. Other liabilities; 253,104 216,955

of which due within 1 year: (244,430) (209,325)

of which due after more than 5 years: (3,277) (3,215)

of which taxes; (51,675) (48,887)

of which within the scope of social security: (11,027) (8,970)

497,343 499,929

D. Deferred Income 22,471 21,540 1,734,157 1,648,263

Contingent Liabilities arising from 1. Bills of exchange 197 146

2. Secondary liability for pension obligations

transferred to the relief fund 10,195 8,747

3. Liability for sureties 492 484

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Each drop of water is made up of

many millions of atoms,

C O N S O L I D AT E D P R O F I T A N D L O S S A C C O U N T

Seen from nearby …

just as our world is made up of

many millions of suns and planets.

And now picture this: All of the

many millions of atoms

For the Period 1 January to 31 December 2009 2009 2008

1 000 1 000

1. Gross sales 1,826,408 1,831,677

less sales tax 267,676 264,870

1,558,732 1,566,807

2. Change in finished goods and work in progress -13,515 5,943

3. Own work capitalised 1,534 761

1,546,751 1,573,511 4. Other operating income 70,115 62,445

5. Raw materials and consumables:

a) Expenditure on materials

and purchased merchandise 227,564 245,044

b) Expenditure on purchased services 19,826 20,852

247,390 265,896

1,369,476 1,370,060 6. Personnel costs:

a) Wages and salaries 363,032 368,140

b) Social security contributions

and pensions; 103,184 83,689

of which for retirement pensions: (31,311) (13,501)

466,216 451,829

7. Depreciation and amortization on tangible and

intangible fixed assets 39,046 37,646

8. Result from participations in associated companies 8,176 -18,712

9. Income from other securities and

long-term loans 122 302

10. Other interest and similar income 50,343 70,982

11. Write-down of financial assets and

marketable securities 45 6,322

12. Interest and similar charges 11,270 14,563

13. Collective heading 911,540 912,272

Other items not shown separately

(Other operating costs, taxes, net profit for the year)

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in this drop of water are really stars

and planets.

And after many thousands of years,

you have made it to our sun

and a couple of days later

you are really close to our planet earth, on which you are now sitting

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4 4

M O V E M E N T S I N F I X E D A S S E T S

and reading this story.

From 1 January to 31 December 2009 Gross values

As at Currency Book As at

1.1.2009 conversion Additions Disposals transfers 31.12.2009

differences

1 000 1 000 1 000 1 000 1 000 1 000

I. Intangible Assets 1. Concessions, patents,

trademarks and similar rights

as well as

licenses thereto 38,327 641 913 1,024 184 39,041

2. Goodwill 335,177 — — — — 335,177

3. Payments on account 307 — 1,191 84 -184 1,230

373,811 641 2,104 1,108 0 375,448 II. Tangible Assets 1. Land, land rights and

buildings, including

buildings on

third-party land 111,024 217 10,104 184 -3,093 118,068

2. Technical plants

and machinery 185,322 216 14,788 6,110 10,672 204,888

3. Other fixtures, fittings

and office equipment 122,077 706 9,421 11,958 2,913 123,159

4. Payments on account and

assets under construction 10,910 46 8,166 436 -10,492 8,194

429,333 1,185 42,479 18,688 0 454,309 III. Financial Assets 1. Participations in

associated companies 43,799 — 6,938 1,468 — 49,269

2. Other participations 5,473 — 2,920 — — 8,393

3. Long-term

investments 3,144 1 6,297 157 — 9,285

4. Other loans 366 — 193 239 — 320

52,782 1 16,348 1,864 — 67,267 855,926 1,827 60,931 21,660 0 897,024

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Each drop of water is made up of

Accumulated depreciation / amortization Net valuesAs at Currency As at As at As at

1.1.2009 conversion- Additions Disposals 31.12.2009 31.12.2009 31.12.2008

differences

1 000 1 000 1 000 1 000 1 000 1 000 1 000

24,758 286 2,173 1,021 26,196 12,845 13,569

51,225 — 11,196 — 62,421 272,756 283,952

57 — 6 — 63 1,167 250

76,040 286 13,375 1,021 88,680 286,768 297,771

63,411 5 2,822 151 66,087 51,981 47,613

148,630 97 12,994 5,970 155,751 49,137 36,692

93,416 511 9,855 11,310 92,472 30,687 28,661

— — — — — 8,194 10,910

305,457 613 25,671 17,431 314,310 139,999 123,876

— — — — — 49,269 43,799

15 — — — 15 8,378 5,458

48 — 5 — 53 9,232 3,096

31 — — 27 4 316 335

94 — 5 27 72 67,195 52,688381,591 899 39,051 18,479 403,062 493,962 474,335

many millions of atoms, ...

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4 64 6

E X P L A N AT O R Y N O T E S T O F I N A N C I A L S TAT E M E N T S

4 6

I. Introductory RemarksFor the financial year 2009, as in pre-vious years, Vorwerk & Co. KG is pub-licly disclosing its worldwide consol-idated financial statements in accord-ance with the provisions contained in the German Publication and Dis-closure Law (PublG) and the German Commercial Code (HGB) governing consolidated financial statements and group annual reports. A record of the affiliated and associated companies giving the direct or indirect participa-tions in them (§ 313, Section 2 Nos. 1 and 2 of the HGB) is contained in a separate listing of investment holdings.

II. Consolidated GroupThe parent company is Vorwerk & Co. KG (Holding Company). The Group companies do business in the following commercial segments: production and direct sales of high-quality household appliances and cosmetic, facial and body-care products as well as infra-structural facility services and carpets.In the year under review two newly-founded companies have been in-cluded in the consolidated figures for the first time. Three companies have been removed from the consolidated figures because they were liquidated. The domestic akf banking group and a foreign-based logistics company have been included in the figures and evalu-ated at equity as associated companies in accordance with the provisions of §§ 311 and 312 of the HGB. Two asso-ciated companies of lesser significance have not been incorporated in the consolidated figures pursuant to § 311, Section 2 of the HGB, but have been included at acquisition cost.

III. Classification, Accounting and Valuation MethodsThe balance sheet and the profit and loss account are laid out for reporting purposes in accordance with the format stipulated in §§ 290 ff, 266 and 275 of the HGB for corporate entities. For disclosure purposes, the option pro-vided for under the German Publication and Disclosure Law (to show capital, reserves and profit as partners’ equity) has been exercised. In this respect, the investments of silent partners have also been included in partners’ equity on ac-count of the fact that they are provided with a subordination clause and since they are of an equity-capital-similar nature. Moreover, with respect to § 13, Section 3, Clause 2 of the PublG, infor-mation is also provided in the explana-tory notes to the consolidated financial statements as per § 5, Section 5 of the same PublG. In this respect, the taxes and annual surplus in the consolidated profit and loss account (for disclosure) as a part of the explanatory notes pursuant to § 5 [5] of the German Publication Act have been included with other operating costs under the collective heading“Other items not shown separately”.Vorwerk & Co. KG’s accounting and valuation principles also pertain to the consolidated financial statements. The financial statements of non-German subsidiaries drawn up in accordance with national rules and regulations and at variance with to German legal re-quirements have been adjusted in line with what is known as the Handelsbilanz II (Type II Commercial Balance Sheet). The valuation methods applied can be regarded as a uniform valuation as de-fined in § 308, Section 1 of the HGB. They have remained unchanged from those applied in previous year apart from some insignificant modifications

regarding the application of tax re-lief on the write-down of low-value assets in the tangible fixed assets for the German companies. Purchased intangible assets have been valued at their cost of acquisition less scheduledstraight-line amortization. In the case of tangible fixed assets, where the period of usefulness is limited, the acquisition or manufacturing cost has been de-preciated (straight-line or declining-balance) at reasonable, scheduled rates. As a rule, the straight-line method of depreciation has been used for all ad-ditions up till 1 January 2009 where this resulted in higher amounts of deprecia-tion. Financial assets have been valued at cost or lower attributable value. The movements in fixed assets can be seen in the corresponding “Movements in Fixed Assets” table. Inventory has been valued at average acquisition cost or manufacturing cost in accordance with the principle of lowest value. Apart from direct costs, the manufacturing costs only include reasonable propor-tions of the material and manufacturing overheads involved. Receivables and other assets have been shown at nomi-nal value less appropriate provisions for bad debts and other write-downs. Marketable securities have been evalu-ated at acquisition cost or at the lower attributable value prevailing as of bal-ance sheet date. Liquid funds have been strated at nominal value.Revaluations have been effected in accordance with § 280, Section 1 of the HGB a. F. All identifiable risks and uncertain liabilities have been ad-equately considered in the formation of the provisions. To duly consider the risks in the accrual amounts for pensions that are determined on the basis of thecurrent value principle taking the guideline tables 2005G into account, an

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4 74 74 7

actuarial interest rate of 4.25 percent was applied in contrast to previous year. The impact on earnings from this amounts to 12.1 million euros. Liabilities have been shown at the amount payable.

IV. Foreign Currency ConversionAll balance sheet items of the compa-nies of the Group that are included in the consolidation, but which are lo-cated outside the eurozone have been converted into euros from the respective currency at the rate of exchange prevail-ing as of balance sheet date (average value). Income and expenditure shown in the corresponding profit and loss ac-counts have, with the exception of write-downs correspondingly transformed as of balance sheet date, been converted at the average rate of exchange for the year 2009 (modified closing rate valua-tion method). The ensuing differences of 0.1 million euros after conversion have been included without profit ef-fect within the partners’ equity. The conversion effects resulting fromthe change in rates between balance sheet dates have led to a 2.4 million euro decrease in reserves within the context of the development of partners’ equity, but having no effect on profits.

V. Consolidation Principles The companies included in the conso-lidated financial statements all have 31 December as their balance sheet date. Consolidation of the balance sheets and profit and loss accounts of the companies included therein has been carried out in accordance with the following principles:

1. Capital ConsolidationCapital has been consolidated in ac-cordance with the book value method. In this respect, the book values of the holdings have been set against the equity

capital level of the corresponding sub-sidiary companies including reserves and the result brought forward at the date of initial consolidation or at the date of acquisition. Debit differences re-sulting from the first-time consolidation of the JAFRA Group have been stated as goodwill after the appropriation of hidden reserves to assets and liabilities. The goodwill of the JAFRA Group will be written off over a period of 30 years using the straight-line method. The remaining debit differences from pre-vious years have been netted against reserves. Should any credit differences have resulted from this netting, such have been incorporated into the re-serves in previous years on account of their reserve character. The participating interests of outside shareholders in the equity capital subject to consolidation and in the results of the subsidiary com-panies included in the consolidation have been shown in the compensating item for minority interests. The asso-ciated companies of akf banking group and the foreign-based logistics compa-ny, included at equity, have been con-solidated in accordance with the same principles. In this respect, the valuation principles of the associated companies have been adopted without change. Since Vorwerk exercises no uniform direction over the akf banking group, its figures have been included in the fi-nancial statements at equity. akf leasing Beteiligungs GmbH has prepared con-solidated financial statements for the companies of the akf leasing business as of 31 December 2009. In accordance with § 312, Section 6 of the HGB, these figures have been taken as the basis for consolidation. Vorwerk’s share of profits for the year under review from the companies consolidated at equity has been included in the profit and loss

account as the result from participations in associated companies.

2. Consolidation of DebtAmounts due as receivables or payables in respect of companies within the con-solidated group have been offset against each other for consolidation purposes (§ 303 of the HGB).

3. Consolidation of EarningsThe consolidation of expenditure and income contained in the items shownin the consolidated profit and loss account comply with § 305 of the HGB. Inter-company sales and the corre-sponding level of expenditure as well as other, mutual inter-company expendi-ture and income from the consolidated companies’ profit and loss accounts have been set against each other.

4. Deferred TaxationDebit deferred taxation from the indivi-dual financial statements have been net-ted with credit deferred taxation balances from the individual financial statementsor from the consolidation process andan amount of 11.1 million euros has beenreported (§ 306, Clause 3 of the HGB) pursuant to the assessment option pro-vided for in § 274, Section 2 in associa-tion with § 300, Section 2 of the HGB. 2.1 million euros of credit deferred taxation balances have resulted from the consolidation measures, from the elimi-nation of inter-company results and from the consolidation of debt. When calcu-lating taxation for consolidation entries affecting profits pursuant to § 306 of the HGB, a uniform Group-wide average rate of taxation of 30 percent has been applied. The calculation of deferred taxa-tion for individual financial statements has been effected on the basis of tax rates applying for individual companies.

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4 8

Reiner Strecker

Peter Oberegger

4. Other InformationNo market-uncustomary business has been transacted with related parties. The fees for the auditors amounted to550,000 euros, for other auditing ser-vices 7,000 euros, for tax consultancy 63,000 euros and for other services rendered 51,000 euros in the year un-der review. Average annual staffing level 2008 2009Employees* 22,255 21,5Sales SystemAdvisers 555,718 589,251 Kobold 9,335 9,140 Thermomix 18,569 20,670 Feelina 152 4 JAFRA Cosmetics 525,863 557,815 Lux Asia Pacific 1,799 1,622*Including employed sales advisers

Management at the parent company Vorwerk & Co. KG is in the hands of the Managing Partners Peter Oberegger, Düsseldorf, Walter Muyres, Jüchen and Reiner Strecker, Hamburg (since 1 Ja-nuary 2010). Wuppertal, 16 April 2010

80

VI. Other Statutory Disclosures in Accordance with § 314 of the HGB and Explanatory Notes to Various Items in the Consolidated Balance Sheet and Consolidated Profit and Loss Account

1. Other Financial Commitmentsand Off-balance-sheet TransactionsObligations arising from rental, tenan-cy and leasing contracts amounted to 33.8 million euros in 2009, of which al-most half the obligations have a term of less than one year and the larger proportion will expire within two and five years. Order obligations for invest-ments in tangible fixed assets amount to 2.8 million euros (17.3 million euros in previous year). There are long term obligations arising from contracts with suppliers to an amount of 28.5 million euros as of balance sheet date. There are no future obligations arising from off-balance-sheet transactions that are of significance for the assessment of the financial situation.

2. Profit and Loss AccountGroup Sales (including sales tax)Breakdown by 2008 2009Region million 1 million 1Germany 459.9 428.8Europe 910.7 952.0North America 385.3 363.8Rest of world 75.8 81.8Total 1,831.7 1,826.4Group sales divided according to busi-ness segment are shown in the Group Management Report.

3. Present Value of Derivative Financial InstrumentsAs a part of the Vorwerk Group’s con-scious approach to dealing with currency risks, exchange rate futures and options

as well as interest rate swaps and options are used for hedging purposes both for operative business activities as well as in the area of foreign currency finan-cing. The present value of a derivative financial instrument is the price at which a party would acquire the rights and/or obligations entailed in this financial instrument from another party. The book and present values of the financial instruments of the Vorwerk Group are reported as follows:

Derivative Financial Instruments in 1 000 a) Currency options b) Exchange futures

c) Interest rate swaps d) Interest rate options

Nominal value Book value Present value31.12.09

a) 40,652 -1,665 -1,665b) 52,773 -1,148 -1,136c) 94,206 0 -3,629d) 10,000 0 5

Provisions for threatening losses of 0.3 million euros have been formed to cover eventualities in exchange rate future transactions. The nominal value of the derivative financial instruments is determined using the exchange rate valuation on closing date. The present values of exchange rate futures are de-termined according to the closing rate as of balance sheet date, taking forward discounts and premiums into account. The present values of currency options are assessed on the basis of option price models pursuant to Black & Scholes. The present values of interest rate hedging instruments (interest rate swaps) are determined on the basis of discounted, anticipated future cash flows, whereby the current market in-terest rates for the remaining term of the financial instruments are applied.

4 8

E X P L A N AT O R Y N O T E S T O F I N A N C I A L S TAT E M E N T S

4 8

Walter Muyres

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4 94 94 9

The foregoing consolidated balance sheet and profit and loss account, the explanatory notes (without any listing of investment holdings) together with the Group Management Report as in-tended for publication comply with the legal requirements.PricewaterhouseCoopers Aktiengesell-schaft Wirtschaftsprüfungsgesellschaft, Essen, expressed the following opinion on the complete consolidated financial statements and the Group Manage-ment Report: “Audit opinionWe have audited the consolidated fi-nancial statements – prepared by the Vorwerk & Co. KG, Wuppertal, com-prising the balance sheet, profit and loss account and explanatory notes – and the Group Management Report for the business year from 1 January to 31 De-cember 2009. The preparation of the consolidated financial statements and the Group Management Report in ac-cordance with German commercial law is the responsibility of the managing partners of the company. Our respon-sibility is to express an opinion on the consolidated financial statements and

on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of the companies included in consolidation, the determination of the companies to be included in consolidation, the ac-counting and consolidation principles used and significant estimates made by the managing partners as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion. Our audit has not led to any reservations. In our opinion, based on the findings of our audit, the consolidated finan-cial statements comply with the legal requirements and give a true and fair view of the net assets, financial position and results of operations of the group in accordance with German principles of proper accounting. The Group Man-agement Report is consistent with the consolidated financial statements and as a whole provides a suitable view of the group’s position and appropriately presents the opportunities and risks of future development.”

Essen, 16 April 2010

the Group Management Report based on our audit. We conducted our audit of the consolidated financial statements in accordance with § 317 of the German HGB (German Commercial Code) and the generally accepted standards for the audit of financial statements promul-gated by the Institut der Wirschaftsprüfer in Deutschland (IDW). Those standards require that we plan and perform the audit such that misstatements material-ly affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with German principles of proper accounting and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environ-ment of the Group and expactations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated finan-cial statements and the group manage-ment report are examined primarily

PricewaterhouseCoopersAktiengesellschaftWirtschaftsprüfungsgesellschaft

Peter Albrecht Thomas HofmannAuditor Auditor

A U D I T O R S ' R E P O R T

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5 0

SpainVorwerk España M.S.L., S.C.Avda. Arroyo del Santo, 728042 Madrid

FranceVorwerk France s.c.s.5, rue Jacques Daguerre44306 Nantes Cedex 3

ChinaVorwerk Household Appliances Co., Ltd.9F, Vorwerk Plaza1768 Yishan Road201103, Shanghai

PortugalVorwerk Portugal Electrodomesticos LDARua Quinta do PaizinhoEdificio Bepor, Bloco 2 - 2° Esq.2790-237 Carnaxide/Lisboa

AustriaVorwerk Austria GmbH & Co. KGSchäfferhofstr. 156971 Hard/Bregenz

PolandVorwerk Polska Sp. z o. o.ul. Strzegomska 2 - 453-611 Wrocław

Czech RepublicVorwerk CS k.s.Pod Pekar ˇkou 1/107147 00 Praha 4

Taiwan R.O.C.Vorwerk Lux (Far East) Ltd.Taiwan Branch (H.K.)5F, No. 85, Section 1Chuang Hsiao East RoadTaipei City

MexicoVorwerk México S. de R.L. de C.V.Av. Paseo de las Palmas No. 320, Local PB-ACol. Lomas de ChapultepecDelegación Miguel Hidalgo C.P. 11000México D.F

RussiaVorwerk CIS LLCSchipok street, 9/26, Building 1115054 Moskva

Vorwerk & Co. KGMühlenweg 17 - 3742270 WuppertalDeutschland

Vorwerk & Co. Interholding GmbHMühlenweg 17 - 3742270 WuppertalDeutschland

Vorwerk & Co.Beteiligungsgesellschaft mbHMühlenweg 17 - 3742270 WuppertalDeutschland

Vorwerk InternationalMittelsten Scheid & Co.Verenastr. 398832 WollerauSchweiz

Vorwerk & Co. KGBruxelles Bureau47, Rue Montoyer1000 BrüsselBelgique

Vorwerk Direct Selling Ventures GmbHMühlenweg 17 - 3742270 WuppertalDeutschland

Direct Sales, Vorwerk

ItalyVorwerk Folletto s.a.s. di Vorwerk Management s.r.l.Via Ludovico di Breme, 3320156 Milano

Vorwerk Contempora s.r.l.Via Ludovico di Breme, 3320156 Milano

GermanyVorwerk Deutschland Stiftung & Co. KGGeschäftsbereich KoboldMühlenweg 17 - 3742270 Wuppertal

Vorwerk Deutschland Stiftung & Co. KGGeschäftsbereich ThermomixMühlenweg 17 - 3742270 Wuppertal

T H E M A I N C O M PA N I E S I N T H E V O R W E R K G R O U P

Vorwerk Engineering

GermanyVorwerk Elektrowerke GmbH & Co. KGMühlenweg 17 - 3742270 Wuppertal

FranceVorwerk Semco S.A.S.20, route de Montigny28220 Cloyes-sur-le-Loir

ItalyVorwerk Folletto Manufacturing s.r.l.Via Garibaldi, 2720043 Arcore-Milano

ChinaVorwerk Household ApplianceManufacturing (Shanghai)Co., Ltd.Songze Ave. 8777Qinpu District201700, Shanghai

Direct Sales, JAFRA Cosmetics

Headquarters & USAJAFRA Cosmetics International, Inc.2451 Townsgate RoadWestlake Village, CA 91361

MexicoJAFRA Cosmetics S.A. de C.V.Blvd. Aldolfo López Mateos #515Colonia TlacopacDelegación Alvaro Obregón01040 México

GermanyJAFRA Cosmetics GmbH & Co. KGLeonrodstr. 5280636 München

ItalyJAFRA Cosmetics S.p.A.Via Cesare Battisti 5821043 Castiglione Olona

BrazilDistribuidora JAFRA de Cosmeticos, Ltd.Alameda dos Maracatins 659Moema – São Paulo/SPCEP 04089-011

SwitzerlandJAFRA Cosmetics AGRiedstr. 3/56330 Cham

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5 1

HECTAS GebäudemanagementGmbH & Co. KGAm Diek 5242277 Wuppertal

HECTAS Sicherheitsdienste GmbHAm Diek 5242277 Wuppertal

The NetherlandsHECTAS Bedrijfsdiensten C.V.Geograaf 306921 EW Duiven

AustriaHECTAS GebäudediensteGes.m.b.H. & Co. KGSonnwendgasse 189020 Klagenfurt

PolandHECTAS usługi Sp. z o. o.ul. Grabiszynska 241 B53-234 Wrocław

Czech RepublicHECTAS Technické a bezpecnostní služby, s.r.o.Luzická 961600 Brno – Zabovresky

BelgiumHECTAS Schoonhouden BVBAKernenergiestraat 752610 Wilrijk

HungaryHECTAS MagyarországÉpületfenntartó Kft.Hungária krt. 140 - 144, Stock III1146 Budapest

LuxembourgHECTAS Gebäudedienste SaRL38, Avenue Gordon Smith7734 Colmar-Berg

Vorwerk Carpets

Vorwerk & Co. Teppichwerke GmbH & Co. KGKuhlmannstr. 1131785 HamelnDeutschland

JapanVorwerk Lux Japan Ltd.Crescendo Bldg., 2 - 3 - 4 Shin-YokohamaKohoku-ku222-0033 Yokohama

PhilippinesLux Marketing Inc.986 Standford Street (Corner EDSA)Mandaluyong City 1550

akf Financial Services

Germanyakf bank GmbH & Co KGFriedrichstr. 5142105 Wuppertal

akf leasing GmbH & Co KGFriedrichstr. 5142105 Wuppertal

akf servicelease GmbHJohannisberg 742103 Wuppertal

Spainakf equiprent S.A.P.E. La MoralejaAv. de Europa 12, 3a 28108 Alcobendas/Madrid

akf servicelease España S.L.P.E. La MoralejaAv. de Europa 12, 3a 28108 Alcobendas/Madrid

Polandakf leasing polska S. A.al. Jana Pawla II 1500-828 Warszawa

Italyakf servicelease italia srlVia Scarlatti, 3120124 Milano

HECTAS Facility Services

GermanyHECTAS GebäudediensteStiftung & Co. KGAm Diek 5242277 Wuppertal

HECTAS GebäudereinigungStiftung & Co. KGKonsumstr. 4542285 Wuppertal

AustriaJAFRA Cosmetics Handelsgesellschaft mbHSchäfferhofstr. 156971 Hard

The NetherlandsJAFRA Cosmetics International B.V.Geograaf 306921 EW Duiven

Dominican RepublicJAFRA Cosmetics Dominicana S.A.Gustavo Mejia Ricart No. 121Ensanche JulietaSanto Domingo

RussiaJAFRA Cosmetics International LLC10 Pervyi Volokolamskiy proezd123060 Moskva

ProductionCosméticos y Fragancias S.A. de C.V.Av. La Estacada #201Parque Industrial Querétaro Santa Rosa de Jauregui Querétaro, Querétaro CP 76220 México

Direct Sales, Lux Asia Pacific

HeadquartersLux Asia Pacific Pte. Ltd.390 Havelock Road #08-02King's CentreSingapore 169662

ThailandLux Royal (Thailand) Co., Ltd.523 - 525 Lux BuildingSukhumvit 71, Phra Khanong-NuaWattana, Bangkok 10110

IndonesiaP. T. Luxindo RayaJL. Agung Timur 9Blok 01/29-30Sunter Agung Podomoro14350 Jakarta

Taiwan R.O.CVorwerk Lux (Far East) Ltd.Taiwan Branch (H.K.)2F, No. 2 Ruiguang RoadNeihu District114 Taipei City

Page 53: The Vorwerk Annual Report 2OO9 - vorwerk-thermomix.pl · Vision and Principles of the Vorwerk Group 10 Fit for the Future 11 Thanks and Outlook 12 Direct Sales, Vorwerk Kobold 14

Editorial staff: Michael Weber

(person responsible), Alexandra Stolpe,

Corporate Communications of the

Vorwerk Group

Design: Hermann Michels and

Regina Göllner, Wuppertal

Text: Vorwerk & Co. KG

Translation: Alan Hall, Wuppertal,

Lynda Matschke, Hamburg

Production: Druckhaus

Ley + Wiegandt, Wuppertal

© Vorwerk & Co. KG, 2010

Our annual report is published in German

and English with a total circulation of

10,000 copies. Wood products originating

from responsibly managed forests are

marked with the FSC trademark and are

independently certified in accordance with

stringent Forest Stewardship Council (FSC)

criteria. Only FSC-approved paper was

used in the printing and preparation of this

annual report. This annual report

was produced climate neutrally.

5 2

S o u r c e s :

André Poloczek, page 2, 19;

Nick Veasey, page 13;

Roberta Gortana and Kaarsten, page 15;

Bernd Pfarr, page 23;

Regina Göllner, page 25, 31, 37, 39, 52;

Amir Kaljikovic, page 29;

ddpimages, page 29; Eric Isselée, page 37;

Anette Linnea Rasmussen, page 37;

FikMik, page 37; philipus, page 37;

Guido Miller, page 37; Walter Schmögner:

Das unendliche Buch, Insel Verlag,

Frankfurt am Main 1973, page 42-45;

I m p r i n t :

Publication: Vorwerk & Co. KG,

Mühlenweg 17 - 37, 42270 Wuppertal

+49 202 564-1247

www.vorwerk.com

[email protected]

Ident-No. 104146

People can only tread on our toes when they are close enough to us.

Robert Lembke