Annual Report 2017
WÜRTH FINANCE GROUP
 

Key Events in 2017

0,0million Profit before taxes
0,0million Total operating income
0,0billion Balance sheet total
0,0 Number of employees
The Würth Finance Group increased its revenue by 7% to EUR 70 million and recorded the best operating result in its history at EUR 41 million.
Würth Finance International B.V. strengthened its liquidity reserves by doubling its committed credit facility from EUR 200 million to EUR 400 million and extending the duration until 2022.
Würth Financial Services AG ended 2017 with a new sales record, realising an increase of 4% compared to the previous year.
Würth Financial Services AG is taking a forward-looking approach to ongoing automation and digitalisation. In 2017, for example, it successfully initiated the replacement of its existing administration system.

Report of the Board of Directors

In financial year 2017 the Würth Group grew by 7.5% to achieve a new record sales figure of EUR 12.7 billion. In local currencies the increase was even greater at 7.9%. This growth was broadly based globally, with e-business sales in particular recording above-average growth of 19.3% in 2017. The Group’s growth was reflected in rising business volumes and revenue for Würth Finance International B.V.

DETAILED REPORT

Report of the Management

“There is much to indicate that the economy will be robust in the coming months” – that was our optimistic opener for the economic outlook 2017 in last year’s Würth Finance Group Annual Report. Now we know: it was much better still, especially in Europe. The Würth Finance Group performed well in 2017. Overall, revenue rose by 7% to EUR 70.0 million, with increases in both Inhouse Banking – where core activities benefited from the high level of growth at the Würth Group – and at External Financial Services.

DETAILED REPORT

“In our day-to-day work we focus single-mindedly on our job as the treasury competence centre for the Würth Group. But even when we are working very hard we don’t miss out on the lighter moments and getting along with each other as a team. We are grateful for these things.”
Vladimir Kremenovic (Treasury Operations, right), Jolanda Frano (International Payments, centre) and Alejandro Muñoz (Head Treasury Operations & International Payments, left), all at Würth Finance International B.V., Rorschach
“At Würth, challenging and fostering mean focusing on the individual talents of the staff. That way the people at our company can develop in the best way possible – which benefits both our team and our clients.”
Andréa Maria Ottiger (Head Corporate Communications, right) in conversation with Domenica Valentino (Projects, left), both at Würth Finance International B.V., Rorschach
  
“In our day-to-day work we focus single-mindedly on our job as the treasury competence centre for the Würth Group. But even when we are working very hard we don’t miss out on the lighter moments and getting along with each other as a team. We are grateful for these things.”
Vladimir Kremenovic (Treasury Operations, right), Jolanda Frano (International Payments, centre) and Alejandro Muñoz (Head Treasury Operations & International Payments, left), all at Würth Finance International B.V., Rorschach
“At Würth, challenging and fostering mean focusing on the individual talents of the staff. That way the people at our company can develop in the best way possible – which benefits both our team and our clients.”
Andréa Maria Ottiger (Head Corporate Communications, right) in conversation with Domenica Valentino (Projects, left), both at Würth Finance International B.V., Rorschach
  

Report Inhouse Banking

Inhouse Banking recorded a good result for 2017, reflecting healthy growth for the Würth Group. The volumes handled by the central settlement of payments to suppliers and in intercompany factoring activities increased at a double-digit percentage pace and led to corresponding income growth. Revenue reached EUR 59.7 million in the year under review (previous year: EUR 55.4 million). An even stronger increase was prevented by stagnating net interest income and lower year-on-year revenues from the IBB participation and securities investments.


DETAILED REPORT   WWW.WUERTHFINANCE.NET

Business Performance
in million EUR
Central settlement
+2.5*
Securities
investments
-0.2*
Trading
+1.3*
Group financing
+1.7*
Other
-0.2*
Income from
participations
-0.8*
0.2
*Change vis-à-vis 2016

DETAILED REPORT   WWW.WUERTHFINANCE.NET

Development of Premium Volume Non-Life
in million CHF
 

DETAILED REPORT   WWW.WUERTH-FS.COM

Report External Financial Services

Würth Financial Services AG ended 2017 with record sales. They increased by 4% compared with the previous year. In the same period the volume of insurance premiums rose from CHF 240 million to CHF 250 million. The number of corporate clients also increased to 2,650. As in the previous year, the Rorschach branch made an above-average contribution to growth. The company drew great benefit from the profile that the Würth Group and the Würth House Rorschach enjoy in eastern Switzerland, where it is regarded as an attractive employer.


DETAILED REPORT   WWW.WUERTH-FS.COM

Report on Risks and Opportunities

Basic principles of our risk management system:
The Management bears the responsibility for all risks incurred as a result of the company’s business activities and seeks to achieve a healthy balance between risk and returns.
An independent control process forms an integral part of the corporate structure.
Employees are familiar with and alert to the principal risks specific to their area of activity.
A central element of risk control is the comprehensive, transparent and objective disclosure of risks to the Group and company Management, owners, supervisory authorities and other stakeholders.
Revenue is protected on the basis of risk tolerance – i.e. the maximum risk that the Würth Finance Group can bear given its financial and earning power.
Ultimately, the Würth Finance Group’s reputation depends on effective risk management and control.

DETAILED REPORT

“Trust, honesty and being open to other people’s concerns are what define our team spirit, beyond national borders. This can also be clearly seen in our work with our clients – the Würth companies.”
Nicole Schwarz (Head Treasury Services, Würth Finance International B.V., Rorschach, right) talking to Patrick van der Slik (Treasurer, Würth Finance International B.V., ‘s-Hertogenbosch, left)
“Here we deal with colleagues, clients and partners with appreciation and respect. That is demonstrated every day in the little things we do – like a friendly greeting in the morning or a thank-you for a favour.”
Alain Diener (specialist pool and IT projects, Arlesheim office, right) in conversation with Sofia Lianakis (Account Management Assistant, Urdorf office, centre) and Armando Degli Antoni (Account Manager, Lugano office, left), all at Würth Financial Services AG
  
“Trust, honesty and being open to other people’s concerns are what define our team spirit, beyond national borders. This can also be clearly seen in our work with our clients – the Würth companies.”
Nicole Schwarz (Head Treasury Services, Würth Finance International B.V., Rorschach, right) talking to Patrick van der Slik (Treasurer, Würth Finance International B.V., ‘s-Hertogenbosch, left)
“Here we deal with colleagues, clients and partners with appreciation and respect. That is demonstrated every day in the little things we do – like a friendly greeting in the morning or a thank-you for a favour.”
Alain Diener (specialist pool and IT projects, Arlesheim office, right) in conversation with Sofia Lianakis (Account Management Assistant, Urdorf office, centre) and Armando Degli Antoni (Account Manager, Lugano office, left), all at Würth Financial Services AG
  

Key Figures

The primary objective of the Management of the Würth Finance Group is to create continuous value added for the Würth Group. The Management is responsible for generating adequate risk-adjusted returns. In order to be successful in the long term, the Würth Finance Group needs to generate an overall return that is higher than the risk-adjusted cost of capital.
Key figures from the consolidated income statement in TEUR
2016
2017
Interest income
4,521
4,416
Interest income incl. hedge accounting
8,818
8,769
Income from factoring activities
12,899
14,755
Income from commission and service fee activities
29,880
32,983
Income from trading activities and financial instruments
8,837
9,553
Other ordinary income
4,858
3,959
Total operating income
60,995
65,666
Total operating expenses
–29,183
–28,920
Profit before taxes
31,812
36,746
Impact of mark-to-market measurement of interest rate derivatives
4,297
4,353
Profit before taxes incl. hedge accounting
36,109
41,099
Balance sheet total / equity ratio
in million EUR
in %
 
Balance sheet total
Equity ratio (right-hand scale)
Number of employees
Employees
 
Cost-income ratio
in %
 
Cost-income ratio
Cost-income ratio incl. hedge accounting
Return on equity before tax
in %
 
Return on equity before tax
Return on equity before tax incl. hedge accounting

Downloads

Full Report 
Financial Statements 2017 
Report of the Board of Directors 
Report of the Management 
Inhouse Banking 
External Financial Services