Key figures - Schulthess Group

Dear Shareholders,
The Schulthess Group’s business year 1999, though encouraging
with regard to the economic result, has not fulfilled
our expectations in all respects.
It is certain that the business development last year confirmed
the correctness of the corporate strategy adopted by
the Schulthess Group. In this it seeks on the one hand a
marked expansion of the export share in the semi-professional
and professional market sectors, on the other hand
growth by carefully targeted acquisitions. The Group’s
strong market position in the Swiss home market is to be
maintained and expanded.
The business result 1999 reflects this development to a
large degree. Whereas the overall turnover in the Swiss
market stagnated, the export share of sales grew further
thanks to new co-operation agreements and marketing
partners. One major event in the business year was the
takeover of Novelan AG, Dällikon. This acquisition contributed
considerably to the growth in the Group’s sales.
Thanks to progress in productivity, the operating profit
increased yet again. The Schulthess Group’s sales profitability
achieved a high value with 8,3% compared with
other companies in the branch.
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As a public company, in its shareholders’ interest the
Schulthess Group wants to implement the defined medium
to long-term target requirements – an averaged annual
growth of approx. 10% and an EBIT margin of approx. 12%.
The Schulthess Group achieved this objective almost
completely in 1999. We are confident for the new business
year that we will achieve a further marked step in growth in
export thanks to new products and the co-operation
agreements made in the export sector.
In the period under review, the stock market rewarded the
potential of the Schulthess registered share with a rise in
price from CHF 418.– (as at the end of Dec. 98) to CHF 489.–
(as at the end of Dec. 99). Schulthess is and remains a
reliable, profitable and interesting investment.
With the end of the business year, I am handing over the
chairmanship of the Schulthess Group to Mr Rudolf Kägi.
The long-standing Operating Manager and Delegate of the
Board is the guarantee for a modern corporate policy and
the necessary continuity in management. I wish him a
continued sure hand and the necessary portion of luck. I
shall remain linked with the company as a board member
and am looking forward to being able to continue to
accompany the company further in this position. I would like
to thank all those who supported and advised me in my
function up to now at the head of the Schulthess Group.
Paul O. Rutz
Chairman of the Board
(until December 31, 1999)