Annual Report 2017

Der SonnenLichtManager

WAREMA group

2 WAREMA Annual Report 2017

The year 2017 in reviewWAREMA can look back at a positive 2017 fiscal year. We worked hard to connect and digitalise our business processes and value chain. We also focused on measures for increasing our capacity, on developing products for the Outdoor Living growth market and on more effectively reaching the end customer.

JanuaryLaunch of our multi-channel

„Home Comfort“ campaign, which runs both online and offline.

With an emotional and attention- grabbing overall concept, we will

showcase our external venetian blinds with various different motifs

throughout the entire year.

AprilCARAVITA GmbH joins the

WAREMA group. As one of the leading brands in high-grade

parasols and sun sails, CARAVITA is synonymous with high quality

and excellent design.

JulyIn Switzerland, WAREMA

Schweiz GmbH marks its 10th year in existence, and celebrates

in September with a special event attended by customers and busi-

ness partners alike.

SeptemberNearly 30 young individuals

kick off their professional careers at the WAREMA group.

This group includes four youths from refugee backgrounds who

were able to qualify for vocational training spots thanks to a new

integration programme.

3

OctoberSocial entrepreneur Sina Trink-

walder launches her „Brichbag“ project to benefit the homeless.

Leftover awing fabric from our production facilities will be used

to produce high-quality bags and backpacks.

NovemberWe win two German Design

Awards: one in the „Web“ category for our website, which

we relaunched with a greater focus on our target groups.

It helps visitors to quickly and easily find the information they

need. The second award is for our Home Comfort campaign.

04 / Letter from the Executive Board

06 / Mission Statement

07 / WAREMA Group products and services

08 / Smart Home

10 / Digital Business

12 / Digitalising the value chain

14 / The world of work 4.0

16 / Report of the Supervisory Board

18 / Key figures for the WAREMA Group

19 / Imprint

Contents

4 WAREMA Annual Report 2017

The WAREMA Renkhoff SE Executive BoardHarald Freund (Vice Chairman of the Executive Board), Angelique Renkhoff-Mücke (Chief Executive Officer) and Michael Müller (Executive Vice President Manufacturing)

Letter from the Executive Board

5

Today I am delighted to tell you about the positive business performance of the WAREMA group in 2017. Thanks to the strong demand for our high-grade sun shading solutions, we were able to increase sales by 3.3 % to a total of 460.4 million euros over the past year. The booming construction industry and the Outdoor Living trend are currently having a positive influence on our business. Stable market conditions are once again taking shape for 2018.

Despite the fact that we are in the midst of a stable economic environment, we find ourselves living in an age shaped by change, growing complexity and increasing speed. Every day we encounter keywords like Industry 4.0, digitalisation, globalisation and New Work, which make it clear to us that what is taking place has nothing to do with short-lived trends and instead involves fundamental changes to the world of business and work. What can appear threatening on the one hand should in fact be seen as a chance to reinforce the competitiveness, and thus the future, of any given company. That‘s why we at WAREMA are actively working on implementing these aspects with a view to the future.

By restructuring our organisation and establishing a new „Digital Business“ segment, we took another major step towards digitalising our production and business processes in 2017. By the same token, we also initiated our drive to create a different way of working at WAREMA. Both as an organisation and as a team, our goal for the future is to work together with more flexibility and agility, to create space for ideas, and to promote openness, courage and trust. All of this will give us the ability to respond more rapidly to new challenges, changing customer needs, or current trends in the marketplace, for example.

Throughout all of these changes, WAREMA will be there for you as a reliable partner – both today and tomorrow. On behalf of the Executive Board of the WAREMA group, I would like to sincerely thank you for your trust, your commitment and your loyalty.

Angelique Renkhoff-Mücke Chief Executive Officer

„In the areas of digi-

talisation and New Work,

I see great potential for

securing our position as

the leading SunLight

Manager.“

Dear Readers, dear Friends and Partners!

6 WAREMA Annual Report 2017

SunLight Management is our passion

„We want to give everyone the opportunity

to enjoy their preferred

ambience of light and warmth.“

7

Our products and services

Technical sun shading systems − For windows and facades − For living and working spaces − For balconies, patios and open spaces

Intelligent control systems − Radio systems − Central control systems − Bus systems, room automation

Consultation & service − Sales and marketing support − Planning guides − After-sales service

Plastics engineering and mechanical engineering − Project management, including series implementation − Injection moulding, including multi-component technology − Surface finishing − Mould design and machine engineering

WAREMA is the European market leader for technical sun shading products. Our family- owned company was founded in 1955. Since our inception, we have grown to become a full-range provider of external and internal sun shading products and control systems.

At WAREMA, we are very passionate about working with sunlight. We develop and produce individual solutions for the Outdoor Living, Home Comfort and Smart Home segments. In this way, we increase people‘s quality of life and their personal well-being. At the same time, the energy efficiency of private and commercial buildings can be increased in particular through the use of our smart control technologies.

In addition to producing sun shading systems, the WAREMA group also maintains a success-ful market presence in the fields of plastics engineering and mechanical engineering. To con-tinue growing our success as we move into the future, we are actively involved in the pursuit of digitalisation, finding new ways of working and changing our business processes.

Smart Home

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The connected home is no longer a futuris-tic vision. Digital technologies for the Smart Home are already making life easier today. They take care of household tasks, auto- matically ensure high energy efficiency and provide added safety. Above all, they make for more comfortable living. Automatic func-tions are increasingly becoming the norm, and the tap of the finger so common up to now is being replaced by voice commands in a growing number of applications.

The future begins now

9

„Smart Home solutions from WAREMA

give people big advantages and

a unique living sensation in their own

four walls.“

An intelligently controlled sun shading system is an essential feature of any modern Smart Home. The solutions from WAREMA range from our WMS radio system and central control systems for residential or office buildings to integrated sun shading control systems. Thanks to their innovative technology external venetian blinds, roller shutters and awnings automa- tically adjust to changing climatic and lighting conditions. Our solutions also accommodate the individual needs of different room users – via smartphone, tablet or voice command with no hassle. It‘s all a part of how our solutions deliver the perfect room atmosphere while adding more Home Comfort.

Thanks to our collaboration with technology company mediola, users benefit from a practical all-in-one solution. Just one app is all it takes to conveniently control all Smart Home appli-cations – from heating and sun shading systems, door intercoms and cameras, to smoke detectors and lighting.

Innovative solutions for greater Home Comfort

Digital BusinessIn addition to impacting many other aspects of life, digitalisation is also permanently changing the way we make purchasing decisions. Global connectivity and digital media are giving people a quicker and simpler way to get information about products and services whenever they want it. Customers now approach dealers and manufacturers with high ex- pectations, expectations that we want to meet.

10 WAREMA Annual Report 2017

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Operators, specialist dealers and architects each have very different needs for information when it comes to solutions for Outdoor Living, Home Comfort and the Smart Home. With our new website (which went online in spring 2017) and the WAREMA Blog, we‘ve created intuitive platforms that offer inspiration, information and planning tools for a wide range of different target groups.

The WAREMA Designer was developed to give potential customers the most realistic feeling possible for new shading options, even before they make their purchase. A „smart app“ application provides a virtual preview of the desired awning on customers‘ own homes. With the live camera of a mobile device, a custom 3D model is simulated on customers‘ very own patios or balconies using augmented reality.

In addition, we also offer a number of other practical tools built on digital technology to help our business partners. One of the most important is the myWAREMA online platform. It takes the digital collaboration with our business partners, and their support in day-to-day operations, to an entirely new level. Equally revolutionary is the WAREMA Smart pro-gramming cable, which has transformed the commissioning process for sun shading drives.

Success through digital experiences and tools

Digitalising the value chain

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13

For years the WAREMA group has stood apart from the rest on the strength of our incredible depth of production, modern processing methods and innovative techno- logies for producing sun shading products and control systems. In order to ensure that we continue to meet our own strict quality standards, we constantly implement improvement processes that also help to expand our capacity.

We have been steadily automating our production operations for roughly the past 20 years. It is an area which we believe will remain a source of great potential in the future. By continuously investing in cutting-edge production technologies, equip-ment and systems, we are optimising, digitalising and connecting our production processes. This specifically includes the integration of upstream and downstream areas such as development, procurement and logistics.

Superior quality built on continuous investment

The world of work 4.0

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The social developments taking place bring with them changes in the way we work and cooperate within the WAREMA group. Especially in times of change, we benefit greatly from the incredible expertise and experience of our 3,700 employees. As one big team, these individuals form the solid base that drives the within our company.

Our goal is to position ourselves as a flexible organisation, so that we have the ability to respond quickly to developments, trends and current conditions. The path we‘re taking to reach this goal involves a new organisational structure, agile approaches to work and an openness to new ideas. In this we see a major oppor- tunity for an even better alignment with the needs of the market, and thus a way to expand our position as the leading SunLight Manager.

Forging ahead with courage and determination

„Agile work methods

and open- ness to new

ideas are our path to the

future.“

New perspectivesTo us, digitalisation has nothing to do with downsizing. New technologies release our employees from monotonous operational tasks that are now handled by automation. This allows us to benefit from freed-up capacity.

At the same time, job profiles are more heavily favouring electronics, engineering and IT. In addition to the systematic pro- fessional training and development we provide for our staff members, we also pursue ongoing recruitment of qualified specialists.

„We wish to thank everyone

for their per- sonal commitment

and excellent performance

throughout the 2017 fiscal

year.“The WAREMA Renkhoff SE Supervisory Board Bernd Ruppert, Thomas Benz (Vice Chairman), Dr Hanns-Peter Ohl, Dr Christine Alsmann, Dr Axel Bauer (Chairman) and Manfred Neubert

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17

In fiscal year 2017 the WAREMA Renkhoff SE Super- visory Board regularly advised the Executive Board and monitored management activities. In doing so, the Supervisory Board adhered to the tenets of responsi-ble and effective corporate governance. The Executive Board provided the Supervisory Board with exten-sive information about the course of business and the economic state of affairs of the companies in the WAREMA group in three ordinary meetings held on 26 April 2017, 27 September 2017 and 13 December 2017, and in monthly meetings conducted as telecon-ferences. In one case, the Supervisory Board also took a decision by way of circular resolution.

The Executive Board regularly provided the Supervi-sory Board with prompt and thorough information in written and verbal reports. These reports included all information relevant to strategy development, planning, corporate business performance during the fiscal year, the position of the group, the overall risk situation, risk management and compliance.

The Supervisory Board received regular briefings on the economic situation of the company and its indi-vidual business divisions, on business developments and on corporate planning, and it consulted with the Executive Board on both the state of business and the strategic focus at the company. Management activities, particularly those requiring the approval of the Super-

visory Board, were reviewed in detail by the Board based on written reports submitted by the Executive Board. The Supervisory Board then discussed these actions with the Executive Board. Every decision proposed by the Executive Board was met with the approval of the Supervisory Board.

The company made use of the option to consolidate the management report and the notes to the annual financial statements for both WAREMA Renkhoff SE and the entire group.

The annual financial statements and the consolidated financial statements for WAREMA Renkhoff SE for the year ended 31 December 2017, as well as the com-bined group and company management report, were audited by the Zimmermann, Steiner & Partner mbB accounting and tax advising firm based in Augsburg, Germany, which was selected during the General Meeting to review the financial statements for fiscal year 2017. These financial statements were certified with an unqualified audit opinion. The Supervisory Board closely examined the documents submitted by the Executive Board and the auditor‘s reports, which were available to all members of the Supervisory Board. The Supervisory Board approves the results of the year-end financial audit and accepts the annual financial statements prepared by the Executive Board for fiscal year 2017 as well as the consolidated finan-

Report of the Supervisory BoardDear Readers,

cial statements and the management report, which is combined with the group management report. The annual financial statements for fiscal year 2017 are thereby adopted.

The Executive Board‘s proposal for the appropriation of the annual net profit has been reviewed by the Supervisory Board, which also discussed the recom- mendation at length with the Executive Board. On the basis of the Supervisory Board‘s own review, and after taking into account the earnings situation and financial position, the Supervisory Board has endorsed the proposal for the appropriation of profit submitted by the Executive Board. The conclusive results of the review by the Supervisory Board give no occasion for any objections. The Supervisory Board wishes to thank the Executive Board and the management of the WAREMA group, as well as all of the employees and the employee representatives, for their outstanding personal commitment and excellent performance over the past fiscal year.

Marktheidenfeld, 23 April 2018

Dr Axel BauerChairman of the Supervisory Board

18 WAREMA Annual Report 2017

Key figures of the WAREMA Group

in EUR ‘000 2017 2016 2015 2014 2013

Earnings performance

Revenue 460,407 445,721 418,948 403,956 376,998

Operating performance (adjusted) 470,120 448,989 421,905 417,905 393,276

Staff costs 202,223 194,868 187,711 186,637 176,628

Material costs 180,819 171,957 157,209 156,819 150,460

Operating result/EBIT (adjusted) 24,437 24,686 16,473 18,272 10,279

Net income 11,910 11,258 4,079 9,125 2,467

Assets and financial position

Fixed assets 144,231 118,335 115,206 123,141 121,168

Current assets 149,120 150,655 140,578 127,547 117,846

Equity 136,089 128,571 119,396 119,317 112,020

Total assets 295,559 271,073 257,445 252,496 240,474

Investments (without long-term financial assets) 17,892 19,169 16,678 16,292 18,788

Depreciation and amortisation 16,549 15,958 15,504 15,208 14,976

Net cash from operating activities 26,599 38,129 29,143 33,032 21,389

Key figures

Return on sales before profits taxes (%) 4.2 3.8 2.1 3.7 1.4

EBIT (%) of sales (adjusted) 5.2 5.5 3.9 4.5 2.7

Equity ratio (%) 46.0 47.4 46.4 47.3 46.6

WAREMA Renkhoff SE

▶ WAREMA International GmbH – WAREMA Austria GmbH – WAREMA France SARL – WAREMA Nederland B.V. – WAREMA Schweiz GmbH – WAREMA Sun Shading Systems (Shanghai) Co., Ltd.

▶ WAREMA Sonnenschutztechnik GmbH

▶ WAREMA Sun Shading Systems Hungary Kft.

▶ Wings Professional Project GmbH

▶ CARAVITA GmbH

▶ WAREMA Kunststofftechnik und Maschinenbau GmbH

– WAREMA Plastic Technology Hungary Kft.

„Under the umbrella of WAREMA Renkhoff SE, roughly 3,700 employees throughout the group

are working towards the success of our business.“

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Published by WAREMA Renkhoff SE Hans-Wilhelm-Renkhoff-Straße 2 97828 Marktheidenfeld, Germany Tel +49 9391 20-0 Fax +49 9391 20-2009 E-Mail: info@warema.de www.warema-group.de

Contact Sandra Mairon Tel +49 9391 20-2420 Fax +49 9391 20-162420 E-Mail: sandra.mairon@warema.de

Design and realisation albert+köpfe Werbeagentur www.albertundkoepfe.de

Photos WAREMA

Imprint

WAREMA Renkhoff SEHans-Wilhelm-Renkhoff-Straße 2 • 97828 Marktheidenfeld • Germanywww.warema.com • info@warema.de 87

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