Würth Finance Group
Annual Report 2018
Key Figures of the Würth Finance Group
Profit before taxes
38.5
million
Total operating income
67.9
million
Balance sheet total
2.51
billion
Number of employees
125
employees
Key Events in 2018
The Würth Group generated sales of EUR 13,623 million, an increase of more than 7% over the previous year. E-business grew by 25%.
Record profit in an anniversary year: In summer 2018 Würth Finance International B.V. celebrated its 40th anniversary. Happily, the record result of the Würth Finance Group also gave cause for celebration, with an adjusted operating income of EUR 75 million and an adjusted profit before taxes of EUR 46 million.
Successful fund-raising on the capital market: Würth Finance International B.V. successfully issued a benchmark bond for EUR 500 million to finance the future growth of the Würth Group. Thanks to favourable financing costs, average net interest expense for the Group was reduced significantly.
Success does not come of its own accord: it is due to the commitment and passion of its employees that Würth Financial Services AG can look back on a successful 2018 financial year.
Würth Financial Services AG has set itself the goal of consistently pushing forward on its three focal points: sales, processes and staff.
Report of the Board of Directors
The Würth Group recorded growth of 7.1% to EUR 13,623 million in financial year 2018; after adjusting for exchange rate effects, the plus was 8.6%. This growth was broadly based across regions, while e-business sales registered above-average growth of 25% for 2018.
Report of the Management
2018 was a great success for the Würth Finance Group. The adjusted operating income increased by 7.7% compared with the previous year, rising from EUR 70 million to EUR 75 million.
Getting a project off the ground with enthusiasm
Beat Maurer (Projects, Würth Finance International B.V., Rorschach)
Thinking outside the box – looking at and tackling challenges creatively and differently
Germain Groeppelin (Member of the Management, Würth Financial Services AG, Arlesheim)
Report Inhouse Banking
Würth Finance International B.V. celebrated its 40th anniversary in the summer of 2018: cause to take a step back and to honour those people in celebratory fashion who built up and formed the Würth Group’s inhouse bank and led it successfully into the future. Happily, in this special year a record result of EUR 43.4 million (including income from participations) was achieved.
Trading/Securities Investments: Income Development
Report External Financial Services
2018 was a successful financial year for Würth Financial Services AG. While premium volumes for the non-life insurance contracts it looked after rose by CHF 8 million to CHF 258 million, the number of corporate clients as at the end of 2018 was 2,608.
Development of Premium Volume Non-Life
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.
Working on the whole thing with team spirit and a sense of fun
from left to right: David Reichlin (Management Assistant, Rorschach), Ilona Piechaczek (International Payments, ‘s-Hertogenbosch), Srivaths Chakram (Product Manager Omnichannel Payment, ‘s-Hertogenbosch), Sabrina Tanner (International Payments, Rorschach), Kim Meyer (Contract Management & Business Administration, Rorschach)
Taking pleasure in movement and trying out new things
Björn van Odijk (Managing Director, Würth Finance International B.V., ‘s-Hertogenbosch)
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
| 2014 | 2015 | 2016 | 2017 | 2018 | |
|---|---|---|---|---|---|
| Interest Income | 19,882 | 2,611 | 4,521 | 4,416 | 9,730 |
| Income from factoring activities | 13,331 | 14,115 | 12,899 | 14,755 | 16,018 |
| Income from commission and service fee activities | 24,994 | 28,596 | 29,880 | 32,983 | 35,272 |
| Income from trading activities and financial instruments | 7,288 | 7,038 | 8,837 | 9,553 | 7,320 |
| Other ordinary income | 682 | 4,896 | 4,858 | 3,959 | 3,292 |
| Credit loss (expenses) / recovery | 0 | 0 | 0 | 0 | -3,698 |
| Total operating income | 66,177 | 57,256 | 60,995 | 65,666 | 67,934 |
| Total operating expenses | -25,474 | -27,523 | -29,183 | -28,920 | -29,418 |
| Profit before taxes | 40,703 | 29,733 | 31,812 | 36,746 | 38,516 |