WAREMA Annual Report 2014

The sun can't be controlled, but it can be managed.

Annual Report 2014

Der SonnenLichtManager

01

WAREMA Annual Report 2014

03 Key figures of the WAREMA Group

04 Letter from the Executive Board

05 Review of the year 2014

06 Always close by

08 Always sustainably successful

10 Always a strong team

12 Always the perfect lighting conditions

14 Report of the Supervisory Board

17 Imprint

Contents

As a full-range provider supported by a large team of experts, the Group possesses the capability to deliver solutions from a single source. Its national sales net-work and global presence ensure that the company's know-how is always available wherever it is needed.

Always the right lightfor a better quality of life

As important as sunlight is for all of us, peo-ple still need products and technologies that create a comfortable atmosphere. These days a tap of the finger is often all it takes to supply any room with just the right lighting – for a better quality of both work and life. It's a big part of what we're working on at WAREMA.

Our goal is to develop customer oriented solutions with a continuously expanding range of products that offer superior quality. As the SunLight Manager, we also see it as our job to provide comprehensive advising and the fastest possible delivery while offering customised manufacturing.

02 03


Key figures of the WAREMA Group

▶ WAREMA Sonnenschutztechnik GmbH

▶ Wings Professional Project GmbH

▶ WAREMA Kunststoftechnik und Maschinenbau GmbH

− WAREMA Plastic Technology Hungary Kft.

WAREMA Renkhoff SE

▶ WAREMA International GmbH

− WAREMA Austria GmbH − WAREMA France SARL − WAREMA Iberia S.L. − WAREMA Korea Yuhan Hoesa − WAREMA Nederland B.V. − WAREMA Schweiz GmbH − WAREMA Sun Shading Systems

(Shanghai) Co.,Ltd.

SunLight Managementwith solutions made for the future

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

Consultations and service − Sales and marketing support

− Planning guides

− After-sales service

in EUR '000 2014 2013 2012 2011 2010

Earnings

Revenue 403,956 376,998 372,438 375,920 329,163

Operating performance 417,905 393,276 384,361 385,275 343,141

Staff costs 186,637 176,628 168,334 154,896 143,857

Cost of materials 156,819 150,460 144,906 150,262 135,735

Result from ordinary activities 15,398 5,963 11,100 26,715 14,721

EBIT (operating result) 18,272 10,279 14,148 26,602 17,116

Net income 9,124 2,467 7,316 18,075 10,300

Assets and financial position

Fixed assets 123,141 121,168 115,903 102,020 80,977

Current assets 127,547 117,846 126,420 134,613 117,570

Equity 119,317 112,020 111,685 108,579 94,580

Total assets 252,496 240,474 243,907 238,630 199,608

Investments (without long-term financial assets) 16,292 18,788 23,208 32,050 11,463

Depreciation and amortisation 15,208 14,976 14,163 11,868 11,809

Net cash from operating activities 32,448 21,389 13,291 25,458 16,498

Key figures

Return on sales before taxes (%) 3.7 1.4 2.8 6.9 4.3

EBIT in % of sales 4.5 2.7 3.8 7.1 5.2

Equity ratio (%) 47.3 46.6 45.8 45.5 47.4

The WAREMA Renkhoff SE Executive Board: Michael Müller (Executive Vice President Manufacturing), Harald Freund (Vice Chairman of the Executive Board), Angelique Renkhoff-Mücke (Chief Executive Officer), Thomas Schauberger (Executive Vice President International).

Award-winning design and innovative functions are the hallmark of the cassette awning K70.

The external venetian blind 80 S was available exclusively to our Expert Partners in 2014.

At the Partner Dialogue 2014 Thomas Wiesmann and Frank Dahinten presented the new WAREMA Colour World.

04

Letterfrom the Executive Board

Review of the year 2014 2014 was an eventful year and also one that shaped the WAREMA Group in many diffe-rent ways. The first half of the year saw our sales team present our intelligent sun shading solutions for effective SunLight Management at the fensterbau/frontale trade fair in Nuremberg and at the light+building in Frankfurt. In the very same year, we also took home one iF Product Design Award each for our cassette awning K70 and external venetian blind 80 S, as well as the Red Dot Communication Design Award in the "Mobile & Apps" category for our WMS WebControl.

New products and technologies called for intensified research, development and production, and we were able to rely on the outstanding commitment and exceptional flexibility of our staff during peak order times in the summer. Both in Germany and abroad, we successfully maintained our market position and also ensured that our solutions will continue to be on the cutting edge of the technology used in the planning sustainable building envelopes. WAREMA strives to remain "one step ahead of the sun" – a position that WAREMA partners affirmed for us over the course of the incredibly successful Partner Dialogue 2014 in Munich, which once again drew a record number of participants.

WAREMA was again honoured as the "most family-friendly employer in the Main- Franconia region" in 2014, and the company was also selected as one of the top employers in Germany in a community survey conducted by the magazine "Focus" and the business platform "XING".

Ladies and Gentlemen,Dear Friends and Partners,By now you've surely noticed the new WAREMA look – which graces everything from our documents and web pages to our trade fair appearances. In the future, our lorries will also be transporting the new WAREMA brand look throughout the world. It features a blend of shadows cast by different products and thus "transmits" the idea of SunLight Management into the area of technical sun shading.

But the steps we've taken to move towards the future have not only been visual, they've also involved various different improvements and innovations. After all, both WAREMA and its position as the leading SunLight Manager have always been defined by exceptional performance – performance that we successfully demonstrate time and time again. This consistent track record has given rise to

Angelique Renkhoff-Mücke Chief Executive Officer


values that make us an attractive, credible and dependable partner for you.

Service is one of the new areas of focus for our custo-mers and partners this year. Here, we've consolidated our strengths to fully leverage them in meeting the needs of our customers to the best possible extent. Because a focus on the customer is our top priority at WAREMA, and since we're constantly looking for ways to improve in this area, we've also modernised our sales structure. This allows us to ensure a robust and efficient sales network, complete with shorter distances and competent contacts.

All of these changes are important, not in the least because they present new opportunities. Our business environment, the market itself and both internal and external demands are constantly changing, bringing us face-to-face with ever greater challenges. As the leading SunLight Manager, it is critical that we do more than just react: we also need to

initiate change ourselves, remain firmly in control of our course and, together with you, continue on our successful path. This means that every one of us is called upon to con-tribute. And as we all know, working together will keep us at number 1 well into the future.

On behalf of the Executive Board, I wish to express my sincere gratitude to all of our employees for their hard work and their contributions to our success as a company. We'd also like to extend our deep gratitude to our customers and partners for their trust and loyalty. Let's make 2015 another year of outstanding performance!

International growth To secure our leading position in the sun shading in-dustry, we make targeted investments in the further growth of our international operations. After all, the issues of energy efficiency and sustainable building are, or are becoming, increasingly important in the various markets. These are excellent starting conditions for WAREMA to establish itself as the leading SunLight Manager in the strategically important sustainable buil-ding market. In the process, the demands specific to each international market must be considered so that we can support our international customers by offe-ring the best possible solutions. Here, our international sales network and our partners across the entire world will help us to reach our goal.

A strong voice for the industryAs the leading SunLight Manager, we have an obligation to society and are an active participant in the major associations of the sun shading industry. In this set-ting, our experts work with other companies to develop standards and create decision-making frameworks. This allows us to voice our interests effectively in the public policy-making process.

1,023

14,229

kilometres was the total distance travelled by our vehicle fleet of 60 lorries, 19 trailers and 2 vans in 2014.

customers in more than 50 countries around the globe – from Australia to the U.S. – were served by roughly 200 associ-ates at WAREMA International in 2014.

consultations, an average of 60 calls per day, were handled by our architects' hotline. In additi-on, there were well over 1,000 consultations and enquiries related to building physics and the topic of sustainable building.

4,876,303

07


Always close by for any sun shading needs

Over the decades, WAREMA has amassed extensive expertise in all aspects of SunLight Management. Today, we are THE SunLight Manager. All across the world, our intelligent solutions are used as key components in climate-active building envelopes. The fact that we've been at the top of our industry for many years now is the result of our drive

to always be one step ahead. A necessary ingredient to achieving this goal is to always be close by wherever sun shading systems are concerned. That means keeping close to technological developments, close to customers and markets, and close to all relevant institutions and associations.

08

Always sustainably successfultogether with our partners

Our motivationLong-term success and a consistently high level of performance can only be achieved through cooperation and mutual trust. We're proud of our longstanding partnerships with small-, medium- and large-sized companies who do business on a national or global scale. These relationships are a rich source of experiences for us, and they provide us with the motivation to continuously innovate and improve.

Exceeding expectationsAs the manufacturer with the largest portfolio of products and services in the industry, we view a trusting partnership with our customers as an essential foundation for doing business. Our partners hold us to the highest standards – much as they should. That's why we think it's important to provide this group with excellent training sessions and services, and to also exceed their highest expectations in everything we do.

80 % and more of our Expert Partners accepted our invitation to attend the Partner Dialogue 2014 held in Munich.

We take things into our own handsWe take our partners' needs and expectations seriously. The highly efficient structure of our sales network allows us to keep decision-making processes simple and react quick-ly to market trends. To us, being close by also means satisfying our business partners by offering outstanding advantages, such as an extensive service network, and by continuously developing new customer-focused products and services. Our continued adherence to the principle of comprehensive individual consultations supports us along the way.

Always convincing with competenceEducation is an important issue, both in our society and at WAREMA. In late 2014, we unveiled our training programme for 2015. In addition to the 41 different seminars to be offered in Marktheidenfeld, numerous training sessions will be held at other locations throughout the current R+T year.

Immer durchKompetenz überzeugen.WAREMA Training 2015

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Always a strong teamthrough responsible actions

As a family-owned business, we feel a sense of duty towards our employees, and we'd like our performance in this area to be mea-sured by our guiding principles. After all, we owe our success to the knowledge, expe-rience and commitment of every individual in the organisation. Investing in the skills and health of our employees is a way to ensure the secure future of our company.

Social responsibility is a fundamental com-ponent of everything we do. We demonstrate our social commitment both inside and outside our company. In addition to actively promoting occupational health and safety, we also offer numerous other services to our employees.

Health management and social commitment are perfectly combined in our PROvital programme.

WAREMA employees can be sure that their family is well taken care of, e.g. with the SONNENkinder holiday programme.

Independent project work makes our apprentices more self-sufficient and promotes the sharing of experiences and knowledge within the organisation.

Goal-oriented training At WAREMA, we place a special value on people. We treat one other with mutual respect and appreciation, which is yet another ingredient to our distinctive customer focus and our continuous growth. We utilise many different measures to create an attractive work environment for our employees, as well as optimal conditions for a healthy and balanced lifestyle. All employees have access to different options for additional training, both internally and externally. This allows them to build on any qualifications obtained pre- viously and adapt these skills to changing conditions.

Family and careerWe know that it's not always easy to manage the competing demands of career and family. That's why we support our employees with a number of measures aimed at impro-ving the compatibility of work and family life. At WAREMA

family-friendliness is not only a firmly established principle in the staff and manager guidelines, it is also actively required and promoted by corporate management and represents an integral part of our corporate culture.

Hans-Wilhelm Renkhoff FoundationOur foundation promotes science, research and develop-ment, and practical third-level training in engineering and business disciplines in accordance with the needs of medi-um-sized businesses. Since its establishment in 1993, the Foundation has supported a large number of students with scholarships allowing them to spend semesters studying abroad. In addition, numerous university research and de-velopment projects have been the beneficiaries of targeted funding. The Foundation is also responsible for supporting social projects and youth work on behalf of WAREMA.

105

euros were invested in the er-gonomic design of production workstations in 2014.

holiday assistants, mostly relati-ves of our staff members, were brought on to handle peak pro-duction loads during the sum-mer months in 2014.

300,000

311 WAREMA SONNENkinder par- ticipated in our holiday program-me held during the Easter, Whit and summer holidays.

Always the perfect lighting conditionswith intelligent solutions

Unique product lineupThe unique WAREMA product lineup is created using the latest in technological develop-ments while incorporating interfaces to other building systems. With state-of-the-art machi-nes and facilities, our production operations meet the most demanding quality standards. Continuous quality assurance ensures superior levels of quality over the entire process chain. This produces solutions that make all the difference.

Optimal use of solar energyThe goal behind all of our research and development efforts is the optimal control and utilisation of the effects of solar energy (i.e. daylight and solar heat) on residential and com-mercial buildings while taking every physical, planning-related and project-specific factor into account. By doing so, we improve the energy efficiency of buildings and increase real estate values, all while providing a better quality of life.

Clean lines and high performance: the new cassette awning K70. Like the external venetian blind 80 S, the awning also received the iF Product Design Award 2014.

The WAREMA SecuTex fabric A2 reduces risks in the event of a fire and meets all of the requirements for a high-performance modern sun shading and glare control product – both inside and outside.

Our top-class performance in the areas of technology and service is regularly attested to by renowned expert juries. It's something that we can be proud of.


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

Report of the Supervisory Board

Ladies and Gentlemen, Fiscal year 2014 brought changes to the lineup of the WAREMA Renkhoff SE Supervisory Board on both the shareholder and employee representative sides. With their terms expiring on 29 April 2014, Günther Bachmann and Dr Klaus Kocher elected to retire from the Board after many years of service to the company. At the General Meeting held on 29 April 2014, Manfred E. Neubert and Dr Hanns-Peter Ohl were elected to the Supervisory Board to represent the shareholders, and existing shareholder representatives Axel Bauer and Thomas Benz were re-elected to their posi-tions on the Board. All of the employee representative slots on the Supervisory Board were up for election. Dr Christine Alsmann was chosen to replace Helmut Nürnberger after his term ended on 29 April 2014. Employee representative Bernd Ruppert was also re-elected to his Board position. In the Supervisory Board meeting held on 29 April 2014, Dr Axel Bauer was unanimously elected as the Board's new Chairman and Thomas Benz was chosen to serve as Vice Chairman.

Michael Müller and Thomas Schauberger were appointed as members of the WAREMA Renkhoff SE Executive Board by the Supervisory Board in fiscal year 2014.

The Supervisory Board advised the Executive Board and monitored management activities on a regular basis, adhering to the tenets of responsible and effective corpora-te governance in doing so. The Executive Board provided the Supervisory Board with extensive information about the course of business and the economic state of affairs of the companies in the WAREMA Group, as well as their business divisions, in four ordinary meetings and – as a new component introduced in fiscal year 2014 – in a month-ly meeting conducted in a teleconference format. As part of this relationship, the Supervisory Board also placed a

Dr. Axel Bauer Chairman of the Supervisory Board

particular focus on advising the new members of the Exe-cutive Board and guiding the restructuring process for the Executive Board's areas of accountability.

The Executive Board regularly provided the Supervisory Board with prompt and thorough information in written and verbal reports. These reports included all informati-on 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 individual business divisions, on business develop-ments and on corporate planning, and it consulted with the Executive Board on both the state of business and the strategic focus at the company. The Supervisory Board considered the idea of establishing its own committees, but ultimately decided that information and advisory sessions would continue to be handled by the Board as a whole.

Management activities, particularly those requiring the approval of the Supervisory Board, were reviewed in detail by the Board in its meetings and circular resolutions 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 Executi-ve Board 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 Group finan-cial statements for WAREMA Renkhoff SE for the year ended 31 December 2014, as well as the combined Group and company management report, were reviewed by Max Zimmermann (professional auditor and holder of a

German business administration degree), based in Augs-burg, Germany, who certified the documents with his un-qualified auditor's opinion. The Supervisory Board also reviewed the documents submitted by the Executive Board.

All members of the Supervisory Board had access to the auditor's reports. 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 2014. The annual financial statements are thereby adopted.

The Executive Board's proposal for the appropriation of the annual net profit has been reviewed by the Super- visory Board, which also discussed the recommendation at length with the Executive Board. The Supervisory Board is in agreement with the Executive Board's proposal, and the conclusive results of the Supervisory Board's review give no occasion for any objections.

The Supervisory Board wishes to thank the Executive Board, the management of the WAREMA Group, and all of the employees for their outstanding personal commitment and excellent performance over the past fiscal year.

Marktheidenfeld, 10. April 2015

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Published by WAREMA Renkhoff SE Hans-Wilhelm-Renkhoff-Straße 2 97828 Marktheidenfeld, Germany Telefon +49 9391 20-0 Fax +49 9391 20-2009 E-Mail: [email protected] www.warema.com

Contact Diana Müller Telephone +49 9391 20-2415 Fax +49 9391 20-2009 E-Mail: [email protected]

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

Photos WAREMA

WAREMA Renkhoff SE • Hans-Wilhelm-Renkhoff-Straße 2 • 97828 Marktheidenfeld • Germanywww.warema.com • [email protected]

Documents

WAREMA Annual Report 2014