Annual Report 2010 (PDF) - Schulthess Group

Max M. Müller
CFO
> Dr. Werner Karlen
CEO
>> Christian Walker
Head of Division
Washing Technology/
Home Automation
Report of Group Management
Successful restructuring of our company
2010 was a year of transition for the Schulthess Group. The
conditions facing both the Heating and Cooling Technology
divisions were unfavourable from the very start of
the year. The situation was marked by difficult market circumstances,
a weak euro and inefficient internal structures.
Management used 2010 to restructure the Group
and focus its activities. We have now a major step along
the road towards transforming the Schulthess Group into
a leading and highly profitable „clean tech“ business. The
trend towards clean technologies is now firmly rooted in
both the social and political worlds. The RES directives
(Use of Renewable Energy Resources) in force in the EU
since 2009 impose a binding obligation to increase the
use of renewable energies to 30 % of total production by
2020 while simultaneously cutting greenhouse emissions
by 20 % compared with 1990 levels. With products such as
heat pumps, water coolers, convenience ventilation units
and energy-efficient washing machines, the Schulthess
Group is now in the ideal position to take advantage of
the „clean tech“ trend.
Growth in the heating technology market below
expectations
The building sector is of crucial importance if climate
protection goals are to be met. In Germany, for example,
heating accounts for approximately 40 % of total energy
consumed. The use of heat pumps to heat buildings by
tapping the heat stored in the earth or air in the form
of solar energy is one of the most promising renewable
energy scenarios. This is the reason why heat pump technology
has established itself as an outstanding „clean
technology“ in both the new construction and renovation
sectors in recent years. The authorities have actively promoted
the more widespread use of heat pumps through
incentive packages and subsidies in order to help reduce
dependence on fuel oil and natural gas.
Through its German subsidiary Alpha-InnoTec, the
Schulthess Group is now a leading supplier of heat pumps
in Europe. What is more, in Genvex (the Heating Technology
division‘s subsidiary in Denmark), the Group now has
an established specialist in convenience ventilation for
buildings, with core markets in Denmark, Germany and
France.
The European heat pump market collapsed in 2009 as
a result of the banking and financial crisis and continued to
decline throughout 2010. This situation was aggravated by
the relatively low price of oil, increases in the price of electricity
and the reduction in incentives resulting from national
budgetary policies, which made conventional oil and
gas-fired heating more competitive in comparison.
Given the difficulties confronting it in the heat generation
sector, the division failed to maintain its sales in 2010
and saw them fall by almost 15 %. The technologies that
compete with heat pump applications such as oil/gas-fired
heating, condensing boilers, wood chip heating or solar
thermal solutions also suffered from declining sales, for
example in Germany. The situation was created by dwindling
overall demand, particularly in the large German and
French markets and the convenience ventilation market in
Schulthess Group 7
Report of Group Management