Trautes Heim, Glück allein / Home, sweet home / / On est bien chez ...

Vorwerk Annual Report 2010
Trautes Heim, Glück allein /
Home, sweet home / /
On est bien chez soi /
Casa, dolce casa / Mi casa
es su casa / Welcome ...

Management Report / Thermomix Editorial / /17
01

Introduction
Management Report / Thermomix Editorial / /17 01
Vorwerk is at home all around the world.
But what does “being at home” truly mean?
Home is a place we associate more than any
other with emotions and values, such as family,
happiness, and a sense of security. A place
of refuge – a place where we long to find the
ideal world we all dream of.
This year, our Annual Report takes you on
an entertaining journey into that world. Along
the way, we will be taking a closer look at some
of the little things that shape our ideas and
memories of home.
So make yourself comfortable. Get ready for
some pleasant smells, the crackling of an open
fire and cosy warmth, all of which make us feel
that it’s really good to be home. / Welcome

Contents
06 A Review of Vorwerk
Management Report 2010
11 General Section on
Business Development
16 Direct Sales, Vorwerk Kobold
19 Direct Sales, Vorwerk Thermomix
21 Direct Sales, JAFRA Cosmetics
23 Direct Sales, Lux Asia Pacific
24 Vorwerk Engineering
28 akf group
29 HECTAS Facility Services

33 Vorwerk Carpets
34 Vorwerk Direct Selling Ventures
36 Human Resources
40 Assets and Earnings Situation
41 Financial Situation
42 Opportunities and Risks
45 Consolidated Financial
Statements 2010
59 The Main Companies
in the Vorwerk Group
62 Sources / Imprint
Contents / 03

04 / At home in / SWITZERLAND
Grüezi /
Zermatt
46° 1' N / 7°44' E
Essentially, a slipper is a loose, comfortable
indoor shoe to be worn at
home. It has found its way – in all
manner of colours and styles – into
homes all over the world, including
beautiful Switzerland, where it warms
the feet during the cold winters.
The slipper’s conquest of the sitting
room in many European countries
created a new species of man – the
“henpecked husband”, or doormat
on which his wife metaphorically
wipes her slippers. He has little to say
in his own four walls.

06 / A Review of Vorwerk
A Review of Vorwerk
Head Offi ce of the Vorwerk Group (Holding Company)
Vorwerk & Co. KG
Mühlenweg 17 - 37
42270 Wuppertal, Germany
Telephone +49 202 564-0, Fax -1301
www.vorwerk.de / www.vorwerk.com
Executive Board
Walter Muyres (Managing Partner)
Reiner Strecker (Managing Partner)
Peter Oberegger (Managing Partner until 31 December 2010)
Georg Müller (since 1 January 2011)
Supervisory Board
Dr. Jörg Mittelsten Scheid, Wuppertal (Chairman)
Prof. Dr. Ing. Pius Baschera, Zurich/Switzerland (Vice Chairman)
Dr. Axel Epe, Düsseldorf (Vice Chairman)
Günther Busch, Mülheim/Ruhr
Dipl.-Ing. Rainer Christian Genes, Stuttgart
Verena Klüser, Munich
Jens Mittelsten Scheid, Munich
Sabine Schmidt, Waltrop (since 1 January 2011)
Karen Schmidt-Paas, Neuss (until 31 December 2010)

Key figures for the Vorwerk Group
in million €* 2007 2008 2009 2010
Group sales (incl. sales tax) 1,777 1,832 1,826 2,372
Balance sheet total 1,643 1,648 1,734 2,720
Partners‘ equity 809 856 920 1,112
Partners‘ equity in % (akf group at equity) 49 52 53 61
Partners‘ equity in % (akf group fully consolidated) 41
Financial assets 27 53 67 55
Other fixed assets 418 422 427 928
Current assets 1,183 1,164 1,221 1,685
Liquid resources 640 600 670 658
Capital investments** 27 48 45 226
Depreciation** 39 38 39 185
Personnel costs 436 452 466 480
Number of employees 22,570 22,255 21,580 22,096
Self-employed advisers 543,415 555,718 589,251 601,664
* akf group up to 2009 included in the consolidated statements at equity, fully consolidated from 2010
** Without financial investments
A Review of Vorwerk / 07

08 / A Review of Vorwerk
International Presence
Subsidiaries
Austria, Belgium, Brazil, China, Czech Republic, Dominican Republic, France,
Germany, Hungary, India, Indonesia, Italy, Japan, Luxembourg, Mexico,
Netherlands, Philippines, Poland, Portugal, Russia, Singapore, Spain, Switzerland,
Taiwan, Thailand, United States of America,Vietnam
Distributors
Angola, Argentina, Australia, Azerbaijan, Brunei, Canada, Caribbean, Chile,
Columbia, Croatia, Cyprus, Ecuador, England, Estonia, Finland, Greece,
Hong Kong, Ireland, Israel, Kazakhstan, Latvia, Lebanon, Lithuania, Malaysia,
Morocco, New Zealand, Norway, Peru, Romania, Scotland, Slovakian Republic,
Slovenia, South Africa, South Korea, Sweden, Turkey, Ukraine, United Arab
Emirates, Zimbabwe

The Vorwerk Group comprised the following business
segments in the year 2010:
Direct Sales, Vorwerk Kobold / Direct Sales, Vorwerk
Thermomix / Direct Sales, JAFRA Cosmetics / Direct Sales,
Lux Asia Pacifi c in Asia / Vorwerk Engineering /
akf group / HECTAS Facility Services / Vorwerk Carpets
Vorwerk Group /
Divisional turnover 2010
3 %
Carpets
€ 69 m
8 %
HECTAS
€ 199 m
1 %
Others
€ 21 m
1 %
Lux Asia Pacifi c
€ 32 m
16 %
akf group
€ 376 m
19 %
JAFRA Cosmetics
€ 447 m
30 %
Kobold
€ 718 m
22 %
Thermomix
€ 510 m
A Review of Vorwerk / 09

10 / At home in / MEXICO
Bienvenidos / Acapulco
16°50' N / 99°55' W
Colours are very important in Mexico. Houses have brightly painted walls on the
outside and lots of colourful accessories on the inside. Take the ”corazón”, for instance.
It stands, among other things, for a sense of security, harmony, wistfulness,
trust and love. It’s also a popular souvenir, which means that you can give your
heart to someone – even if it’s the person you’ve lost it to.

Management Report /
General Section on
Business Development
Management Report / General Section / 11
The Vorwerk Group is reflecting on a successful year in 2010, one in which both turnover as well as earnings
increased considerably. Group turnover rose in the 127th business year by 29.9 percent to 2.372
billion euros. The reasons for this are to be found both in the sometimes distinct growth of almost all
existing business segments as well as in the first-time full consolidation of akf group. Yet even without
inclusion of akf, a clear increase in turnover of 9.3 percent could be recorded. The direct sales companies
contributed in particular to this, recording a significant increase in turnover of 10.8 percent. HECTAS
Facility Services also closed the year under review with an increase. Vorwerk Carpets achieved the level
of previous year in terms of sales, but with much improved earnings. The amount of new business at
akf group was almost at the level of previous year.
Further progress was made in terms of the internationalisation of the Vorwerk Group: the turnover
generated outside Germany was 66 percent, in direct sales it was even as much as 84 percent.
The most successful division at Vorwerk Group is currently the sales of the versatile Thermomix kitchen
appliance. In 2010 the sales organisations in Italy and Spain each sold more than 100,000 appliances, both
France and Germany managed to sell more than 90,000 units. This business is therefore spread across a
broad base, one which provides a solid foundation for future growth.
The Vorwerk Kobold Division also achieved an increase in turnover, due to a great extent to the Italian
sales organisation Vorwerk Folletto. Impulses came for example from the worldwide launch of the new
vacuum cleaner Kobold VK 140.
JAFRA Cosmetics likewise developed very well. Mexico, our largest market by far, did not only return
a new record level of turnover with 351.9 million euros, but JAFRA Mexico also managed to bring the
number of consultants to a new high of 494,577. The newly opened sales organisation in India means
that JAFRA Cosmetics is also represented in the Asian region for the first time.
The earnings of the Vorwerk Group could be significantly increased as against previous year. The inclusion
of akf group and the associated increase in balance sheet total meant that the equity capital ratio was
running at 41 percent. A partners’ equity capital ratio of 61 percent would result as against 53 percent in
previous year had there been an unchanged consolidation group. The liquid assets amounted to 658.2
million euros. Vorwerk will continue to take specific advantage of the entrepreneurial scope that such
figures allow.

12 / Management Report / General Section
2010 has shown that Vorwerk has emerged stronger from the financial and economic crisis. The project
“Fit for the Future” that had already been initiated one year before was of decisive importance in this
respect. The Vorwerk Group had especially prepared itself for the implications of the financial crisis with
internal measures that reduced costs and increased efficiency across all areas of the company.
The Vorwerk Group occupies a leading position among direct selling companies worldwide. In a current
ranking of the top 100 direct selling companies listed in “Direct Selling News”, a publication issued in the
USA, the Vorwerk Group takes third place.
Overall, 623,760 people were working for Vorwerk worldwide in 2010. That is an increase of 2.1 percent
in comparison with the previous year. More than 601,000 of these people were working as self-employed
advisers and consultants in direct selling. As one of the leading direct selling companies worldwide,
Vorwerk offers attractive career opportunities and scope for personal as well as professional development.
Particularly in growing and emerging markets, more and more women are recognising the chances for
greater personal and financial independence by committing to the reputable direct sale of high quality
products. The chances of determining the level of income for oneself and of contributing to the family
income are aspects that are being taken advantage of more and more. Committed, ambitious and motivated
persons are still required across all areas of the Vorwerk direct sales activities. Vorwerk offers high
quality products, recognised sales systems and fairness in interactions with advisers and customers.
The Vorwerk Group is sub-divided into eight divisions and its own companies are present in 27 countries.
Moreover, Vorwerk products are available in 39 additional countries. Management Boards are responsible
for running the respective divisions.
Strategic leadership for the entire Vorwerk Group is the responsibility of the Holding Company in Wuppertal.
The members of the Executive Board are the Managing Partners Walter Muyres and Reiner Strecker
as well as the Executive Vice President Human Resources Georg Müller. Dr. Jörg Mittelsten Scheid,
member of the Vorwerk owner family, is Chairman of the Supervisory Board at the Vorwerk Group.
Thanks and Outlook
The dedication and motivation of the staff, customer advisers and consultants are of significant
importance for the development of the company. The Executive Board would like to take this opportunity
to sincerely thank all “Vorwerkers” for their commitment. One very distinctive feature of the Vorwerk
culture has always been the trusting relationships to one another. The objective of the newly launched
“ONE Vorwerk” project is to reinforce this aspect and increase its focus in our everyday activities.
The mutual exchange of ideas and concepts is one of the requirements for continued future success.

Management Report / General Section / 13
Vorwerk intends to further increase the Group’s sales volume and earnings level over the next two
years. Success in this respect will very much depend upon continuing to keep the career and income
opportunities attractive for advisers and consultants, as with the recent changeover of the sales system
at Kobold Germany. A growth in staffing levels will always be a prerequisite for the further development
of direct selling activities. This is the reason why great importance will be attached in the coming years
to recruiting new sales and management staff.
In the service sector – i.e. at HECTAS and akf group – new possibilities and growth opportunities will occur
as the overall level of economic activity continues to improve. Moreover, akf group is benefitting from
greater cooperation with the Vorwerk sales companies in the area of consumer finance. Vorwerk Carpets,
with its positioning in the premium market segment, is well prepared for the forthcoming investments in
the real estate sector. The respective outlook in the individual divisions will be described in more detail in
the following sections of the Management Report.
Divisional turnover
in million € (incl. sales tax) 2007 2008 2009 2010
Direct sales 1,495.5 1,530.3 1,540.1 1,706.7
Division Vorwerk Kobold incl. Fitted Kitchens* 686.7 695.8 695.4 717.9
Division Vorwerk Thermomix 330.8 386.2 419.8 509.6
Division Vorwerk Feelina** 3.8 3.3 0.9 0.0
Division JAFRA Cosmetics 432.2 409.1 390.2 447.5
Division Lux Asia Pacific 42.0 35.9 33.8 31.7
HECTAS Facility Services 186.6 201.2 195.1 198.9
Vorwerk Carpets 77.9 79.1 69.5 69.4
akf group*** 375.7
Others 16.9 21.1 21.7 21.3
Group turnover 1,776.9 1,831.7 1,826.4 2,372.0
* Vorwerk Fitted Kitchens until 30 June 2008
** Vorwerk Feelina until 31 January 2009
*** akf group up to 2009 included in the consolidated statements at equity, fully consolidated from 2010

14 / At home in / GERMANY

Grüß Gott /
Bad Tölz
47°46' N / 11° 33' E
The garden gnome is probably
the most iconic symbol of
German hominess. But these little
fellows are actually unfortunate
little devils. Armed with a shovel,
pick or wheelbarrow, they are
doomed to perform daily hard
labor behind fences and hedges.
Luckily, their real fans have
joined forces in the Garden
Gnome Liberation Front, and
thanks to them, many a bearded
fellow has now found his way
out into the open countryside.
Down with slavery!

16 / Management Report / Vorwerk Kobold
*
1 000 x
Management Report /
Direct Sales,
Vorwerk Kobold
Turnover increased to 717.6 million euros
Vorwerk Folletto remains market leader in Italy
Small, light, agile and extremely powerful: the new Kobold VK 140 vacuum cleaner sets the standard.
Vorwerk vacuum cleaners have traditionally stood for the very highest quality. This aspect was also in the
foreground of the development of the new Kobold model that was launched in all markets during the year
under review. Whereas other cleaners merely skim across the surface, the new Kobold VK 140 cleans deep
down. The rotating circular brushes in the motorised nozzle even loosen deeply embedded dirt in an initial
vacuuming stage. Thanks to its wide suction intake opening, the Kobold can clean floors more quickly than
other vacuum cleaners – and with 50 percent less power consumption. It can be used both on carpeting
as well as hard floors. The upright vacuum cleaner Kobold and the Tiger canister-type version that is available
in some markets are highly regarded and appreciated products among customers.
The Vorwerk Kobold Division with its sales companies in a total of ten countries as well as the distributor
business increased its turnover once again in the year under review and achieved a volume of 717.6 million
euros (without Fitted Kitchens). Vorwerk Kobold therefore remains the largest division within the Vorwerk
Group in terms of sales.
Purer than Normal Room Air
People who vacuum with a Kobold VK 140 can breathe easily. That’s
because the VK 140’s multi-patented, TÜV safety-certified filter system
traps more than 99.99 percent of allergenic house dust, leaving the
air it emits 1000 times cleaner than normal room air. Good news, and
not just for allergy sufferers!

Management Report / Vorwerk Kobold / 17
A considerable increase was recorded by the sales company Vorwerk Folletto in Italy, the strongest Kobold
sales organisation worldwide. Turnover increased by 8.3 percent to 429.6 million euros. Vorwerk Folletto
thereby continued the positive development of past years and demonstrated most spectacularly that
growth can also be achieved in saturated markets. The first foreign direct sales subsidiary of the Vorwerk
Group – founded in 1938 – thereby managed to maintain its position as market leader in Italy during the
year under review.
In Germany, the second largest Kobold sales country, the sales system was completely restructured in the
year under review. As a consequence of this restructuring phase and the new sales processes associated
with it, turnover fell by 9.3 percent to 181.8 million euros. The new sales system is entirely aligned to
growth. In the new system, an adviser is responsible for customers in a firmly agreed area and is therefore
a direct contact person. The product and service quality are critical factors for many customers in making
a purchasing decision. Vorwerk Kobold Germany is attaching emphasis to linking high quality products with
personal, expert consultation. The advisers agree appointments with customers and are quickly on location
with their expertise whenever needed. This system is not only attractive for customers, but also for advisers:
good career opportunities, a free allocation of time spent on the job and room for individual creativity
guarantee a solid base for workplace self-determination. The product range is being extended step by step,
so Vorwerk Kobold Germany can once again look forward to growing sales volumes in the coming years.
Exports and even some of the smaller Kobold countries in terms of sales volume contributed to the positive
development of the overall division. Spain for example – following the high loss in business as a result of
the financial and economic crisis in 2009 – managed to grow by 21.7 percent in the year under review and
achieved a turnover of 16.4 million euros. The measures that were initiated there at an early stage to
improve the motivation of the Spanish advisers and cautious modifications to the sales system have had
a sustained positive impact.
Whereas the Chinese sales organisation – measured in euros – closed at approximately the same level as
previous year (turnover 2010: 32.1 million euros), Vorwerk Austria was able to record a slight improvement
in sales volume of 2.5 percent to 23.9 million euros. The sales organisation in the Czech Republic also
closed the year under review with a small increase (2.6 percent to 14.6 million euros turnover) as did
Vorwerk France (2.2 percent to 8.3 million euros turnover). Business grew significantly with distributors,
i.e. independent sales partners in those countries where Vorwerk does not have a sales organisation of its
own. The increase here was as high as 25.9 percent with a total sales volume of 4.9 million euros.
The strategic measures and changes adopted in recent years, particularly in the German Kobold sales
organisation, have created essential preconditions for the long-term development of the division. In the
coming years this focus will continue in terms of strengthening and further development of the existing
sales companies.

18 / At home in / FRANCE
Salut / Chalonnes-sur-Loire
47°21' N / 0°46' W
Once upon a time, the fireplace was the focal point of every home. It was the meeting place,
the place where people slept, assembled and ate their food. The hearth has lost none of its
attraction – even if not every home has one these days. Today people cook with the Thermomix,
sleep in warm beds and have a central heating system to keep their home heated to exactly
the right temperature. But when it comes to creating a cosy atmosphere, there’s nothing to beat
a glowing fire in the hearth. Bring a little romance into your home. Crackle, crackle, pop.

Management Report /
Direct Sales,
Vorwerk Thermomix
Marked increase in turnover of 21.4 percent
Continued extension of services for customers
Management Report / Vorwerk Thermomix / 19
In the year under review, the Vorwerk Thermomix Division improved on the already very satisfactory previous
year, and with a turnover volume of 509.6 million euros achieved an increase of 21.4 percent. Moreover,
the division again recorded a significant increase in earnings.
Thermomix is the “multi-talent” in the kitchen. It assumes the function of 12 different kitchen devices:
it can chop, stir, cook as well as weigh – and all in just a single appliance, without any changing of attachments.
Gentle steam cooking means that fresh ingredients can unfold their true flavour while largely
preserving the nutrients. This makes the Thermomix the ideal companion for a fresh, balanced and healthy
diet. The benefits are convincing more and more people worldwide who are familiar with the Thermomix
based on a demonstration in their own home by a well-trained representative. However, not only is the
product convincing, but also the sales approach: Thermomix offers attractive career opportunities,
particularly for women.
12 *
The Secret’s in the Mix
The Thermomix is a genuine multi-talent. Can it knead? Oh yes. Cook?
Without a doubt. Not to mention weigh, stir, chop, grind, pulverize,
blend and boil. In fact, the Thermomix combines the functions of
no less than 12 individual kitchen appliances in one. And that means
excellent meals guaranteed, regardless where they are prepared – in
household kitchens or 3-star restaurants.

20 / Management Report / Vorwerk Thermomix
The growth of the division can be attributed in particular to the four large Thermomix countries Italy, Spain,
France and Germany. Vorwerk Contempora, the Thermomix sales organisation in Italy, managed to maintain
its leading position in the year under review. Turnover again increased by 14.7 percent to 142.0 million
euros. Vorwerk Espana recovered considerably after the crisis year of 2009 and was even able to exceed
its own expectations. A sales volume of 107.6 million euros (an increase of 11.9 percent) meant that they
were able to hold on to second place.
The success story of recent years continued in both Germany and France with double-digit growth rates.
Turnover proceeds in France rose by 52.3 percent to 97.9 million euros. Germany, at 93.9 million euros,
achieved growth of 32.4 percent.
The recipe for success at the Thermomix sales companies lies in a concentration on the core business and
a strengthening of the idea of service. This aspect is being suitably addressed with international cookery
books, the opening of Thermomix studios and the continued establishment of internet communities.
All decisions are taken both from the customer point of view as well as from that of the free-lance and
independent representatives. A regular exchange of “best practices” ensures a high degree of professionalism
within the division. This open form of communication nurtures entrepreneurship at all levels of
the sales organisation and is a basic requirement for sustained success.
In the current year, the focus will be on developing the mid-sized and smaller Thermomix countries. It is
true that Poland, Taiwan and Mexico improved slightly against previous year. In Mexico, still a very young
organisation, the sales model has to be better adapted to the local circumstances. The same applies to
the sales organisation in Taiwan where the necessary adjustments are currently being discussed and
implemented. Turnover in Portugal almost reached the level of previous year (28.9 million euros) with an
increase being expected for 2011 in view of the market potential in this country.
Exports also contributed to the positive development of the entire division. The business conducted with
independent sales partners, the so-called distributors, increased by 13.1 percent to 13.2 million euros.
Moreover, further steps towards internationalisation were taken in the year under review with the
establishment of the sales organisation in the Czech Republic.
The Vorwerk Thermomix Division intends to expand existing markets in the coming years as well as to
continue to develop new sales areas throughout the entire world.

Management Report /
Direct Sales,
JAFRA Cosmetics
Turnover increased to 447.5 million euros
Sales of cosmetics launched in India
Management Report / JAFRA Cosmetics / 21
JAFRA Cosmetics mainly enables women anywhere in the world to achieve an income that is self-determined
and related to their own performance through the direct sale of high quality cosmetics. Sales
systems are flexibly applied in this respect: depending on the country and the cultural background, JAFRA
consultants either present their products at a sales party or in person-to-person consultations. The range
at JAFRA Cosmetics comprises skin and body care, colour cosmetics, fragrances and spa products. The
focus of sales activities is in Mexico and the USA. JAFRA Cosmetics has been a part of the Vorwerk Group
since 2004. Cosmetics is one of the fastest growing segments in international direct selling.
The JAFRA Cosmetics Division achieved a turnover of 447.5 million euros and an improved earnings
situation in the year under review. Turnover thereby grew by 14.7 percent against previous year. The
number of consultants worldwide increased by 2 percent to over 569,000 and almost 500,000 of them
were active in Mexico.
JAFRA Cosmetics is the undisputed market leader in the direct sale of cosmetics there. Once again, the
Mexican sales organisation recorded an improvement against previous year and achieved a sales volume
of 351.9 million euros (plus 16.6 percent) – and this despite non-optimal circumstances. Public safety in
Mexico, a still dissatisfactory economic development and natural disasters in some parts of the country
created a difficult environment for consultants to work in. JAFRA Mexico developed specific programmes
aimed at support and motivation and in this way maintained the level of productivity and attained a new
record number of consultants.
700
All Beauty Needs
Line up all of the JAFRA products and they would soon stretch several
meters. And no wonder, when you consider that the full range totals
over 700 products. From fragrances through skin and body-care products
to colour cosmetics for the discerning woman – and man – the JAFRA
cosmetics range offers something for everyone. As you can see, beauty
sometimes means being spoilt for choice.

22 / Management Report / JAFRA Cosmetics
In the second largest market, JAFRA USA, sales proceeds of 57.5 million euros meant that the company
was slightly above the level of previous year. Low productivity – caused by a distinct loss of purchasing
power among American consumers – was compensated for by an increase of 3.1 percent in the number
of consultants. JAFRA Cosmetics developed better than comparable competitors, both in terms of
product sales and in the number of consultants. The results of a programme to develop management
staff implemented in the last quarter of the year under review will provide a good starting point for new
growth in 2011. The establishment of a new central logistics depot in Dallas will also provide support in
this respect.
The sales organisation in Brazil – barely two and a half years old – could fully meet the expectations in the
year under review and has already established itself as a constant within the JAFRA organisation. A turnover
of 9.7 million euros meant that JAFRA Brazil grew by 81.4 percent. JAFRA sees great future potential
in this third largest direct sales market in the world and the largest in Latin America.
Likewise, the European markets showed a positive tendency, with Italy, Austria and the Netherlands
achieving double-digit growth rates in turnover. JAFRA Germany is slightly below the level of the previous
year, but the Swiss organisation recovered considerably in the final quarter of the year under review after
making adjustments to the sales system. Overall turnover in the European companies was 27.1 million
euros (plus 5.2 percent).
JAFRA Russia – still a comparatively small sales company when measured in terms of the Russian market
potential – sustained the robust development of the previous year.
To continue with the internationalisation of the JAFRA Cosmetics Division, a new “Business Development
Team” has been established. The focus will be particularly on Asian markets offering attractive growth
potential. JAFRA has been present on the Asian market for the first time since October 2010: the sale of
cosmetics started in India, together with a joint-venture partner, the Indian Ruchi Group.
JAFRA is represented in a total of 17 countries either with its own company or through distributors.
All JAFRA products are developed at the company’s own R&D facilities at its headquarters in Westlake
Village, California, in close cooperation with renowned laboratories in the USA, France, Switzerland,
Germany and Italy. A newly developed, up-market colour cosmetics series was successfully launched
in Mexico in the year under review and will be available in other markets in 2011.
To specifically position the brand and to support the consultants, JAFRA has prepared a strategy for using
digital media that has been implemented with the launch of the new website in the year under review
and at the beginning of 2011.

Management Report /
Direct Sales,
Lux Asia Pacifi c
Turnover stabilised, earnings situation improved
Enhanced customer loyalty through CRM
Management Report / Lux Asia Pacific / 23
Under the brand name of Lux, Vorwerk primarily sells water purifiers and vacuum cleaners in the Asian
region. The most important markets are Indonesia and Thailand. The Lux Asia Pacific Division achieved a
turnover of 31.7 million euros in 2010. Thanks to improved margins based on optimised product combinations
and great efforts in cost reduction, the division made a positive contribution to the overall earnings
of the Vorwerk Group in 2010.
Lux Asia Pacific is one of the few direct selling companies that has specialised in selling high-ticket
household goods in the rapidly growing Asian market. The objectives for the year 2010 were to stabilise
the business and simultaneously improve in the earnings situation. Both targets were achieved despite
difficult political circumstances and the associated unrest in Thailand in the first half of 2010.
The strategic new alignment of the division, however, already led to a pleasing development in the last
quarter of 2010. Lux Asia Pacific therefore sees positive prospects for the year 2011.
Various projects will also be implemented this year to further strengthen the business, such as the planned
launch of a new air purifier. To address households with a lower income level, a good quality vacuum
cleaner at a favourable introductory price will be offered for the first time in 2011.
2-3 l.
*
As Precious as Water
We humans need to drink 2-3 liters of water a day. For all those who value good
water quality, there’s the alva water purifier. Its innovative technology filters tap water,
eliminating bacteria and germs and thus also making an important contribution to
quality of life – especially in countries where clean drinking water is not the norm.

24 / Management Report / Lux Asia Pacific / Vorwerk Engineering
Moreover, the newly developed “City Concept” aims at increasing the possibilities for advisers to demonstrate
products by addressing potential customers at publicly accessible information stands. Customer
loyalty is to be enhanced with improved customer relationship management. In addition, expanded sales
of so-called consumables are planned.
Management Report /
Vorwerk Engineering
Development of new products advanced
Additional vocational training workplaces created
As the developer and manufacturer of high quality household appliances for the Vorwerk direct sales organisations,
the Engineering Division is especially dependent on business development at the sales companies.
The main facilities are located in Wuppertal, Germany, with R&D as well as manufacturing being
situated there. Other locations include Cloyes (France), Arcore (Italy) and Shanghai (China).
Currently, the Engineering Division is facing particularly serious challenges that already resulted in organisational
changes in 2010. The new business model at Vorwerk Kobold Germany requires a wider product
portfolio. For this reason, development of new, additional room-care products was intensified in the year
under review. The first innovations will be introduced to the market in 2011. For the future it will be essential
that in cooperation with marketing, product management and sales, new products are launched onto
the market more quickly. In order to do this, far more cooperation agreements and strategic partnerships
with external companies will be entered into. This explains why Vorwerk has acquired a participation in a
technology company in the USA. The objective of this cooperation is to launch a new product for private
households onto the market as early as 2011.
The employment situation at the Engineering Division stabilised in the year under review. Thanks to the
overall positive development of the sales companies, and particularly at Thermomix, the workplaces could
be secured at all locations. The crisis-related short-time working that had to be applied for towards the end
of 2009 for some sections of the German production plant could already be lifted in the first quarter of
2010. Further momentum resulted from the additional activities associated with the product launch of the
new Kobold VK 140 vacuum cleaner.

Buongiorno /
Florence
43°46' N / 11°15' E
The letterbox is our little gateway to the world.
Every day we look inside and wonder whether
there will be a letter for us today. What joy
we feel when there’s an envelope inside from
good friends and loved ones.
Getting mail means that someone is thinking
of me – even if it’s only a bill.
At home in / ITALY / 25

26 / At home in / ITALY

*
60,000
rpm
Even Faster than Formula One
Management Report / Vorwerk Engineering / 27
The powerful, maintenance-free motor of the Kobold VK 140 generates an
impressive 60,000rpm for optimum suction power. By way of comparison,
a Formula One car only manages 10,000rpm. We don’t want to make a lot of
noise about it, but at just 74dB, the Kobold VK 140 is also one of the
quietest vacuum cleaners in the world.
Innovation will continue to be a major issue for Engineering in the future, too. Under the strategic management
of Vorwerk International – located in Switzerland – the notion of innovation is increasingly being
interpreted in a much broader sense. In this context, the division is focusing more and more on a structured
innovative approach that comprises all the core processes such as research and development, manufacturing
and procurement. Besides the classic product innovations, process and procedural innovations
are now being increasingly strived for. Additionally, the growth strategy prevailing at the Vorwerk direct
sales organisations necessitates an efficient, international value chain. The set-up at both R&D and
manufacturing is therefore oriented towards a clear allocation of value creating elements and assignment
profiles as well as focusing regionally on competencies. Every location within the division therefore has a
clearly defined task in the international production network.
The division pursues a policy of continual development of management staff to secure the successor
planning process. Annual development interviews, the measures thus derived, the identification and
targeted application of development functions as well as the implementation of “development centres”
for the assessment of potential are just some of the development instruments. These activities are carried
out in all locations at regular intervals.
At the Engineering location in Wuppertal, additional vocational training workplaces were created in the year
under review for the development of skilled workers. Moreover, manufacturing has been brought in line
with the latest developments in respect of workplace ergonomics. Initiatives targeting health management
supplement these measures.
The Engineering Division anticipates a further increase in the utilisation of the manufacturing facilities in
the current business year. Due to the increasing significance of international markets, both for procurement
and for sales and production, Engineering believes it is exposed to more risk from exchange and raw
material price fluctuations than before.

28 / Management Report / akf group
Management Report /
akf group
Vehicle finance constitutes the solid foundation
Refinancing base broadened with deposit-taking transactions
Contrary to the expectations of many market participants, Germany has done relatively well despite the
financial and economic crisis. Gross domestic product probably grew by 3.7 percent as against 2009.
Prospectively, an improvement in consumption now also seems to be imminent. In terms of investments
– the core business area of akf group with its companies in Germany, Spain and Poland – this recovery has
only been noticeable since the second quarter of 2010. Even the number of vehicle registrations in the
year under review fell back to the already low level of 2008 after the environmental incentive scheme for
motor vehicles in Germany expired. Since akf group strategically provides support for small and mediumsized
companies in the area of investment finance and for the automotive trade in the field of sales finance,
the amount of new business originated by the bank in 2010 could not quite reach the level achieved in
previous year and is now running at 446.1 million euros with a turnover of 375.7 million euros.
As in previous years, vehicle finance with a proportion of some 68 percent was once again the mainstay
of the business in the year just closed. The financing of machinery and other equipment amounted to about
32 percent.
The German Federal Financial Supervisory Authority (BaFin) granted akf group permission to conduct
business as a licensed deposit-taking institute. This activity was taken up towards the end of the year in a
test phase. This business was then made accessible to all potential customers in Germany at the beginning
of 2011. Accounts can be opened and transactions conducted online under www.akf24.de. This diversification
of the refinancing base generated by an extension of the deposit-taking business will make the bank
even more independent.
akf group anticipates a positive development for fiscal years 2011 and 2012. Charges for risk provisions
should – following the trend of the second half of 2010 – turn out to be much more moderate. The reluctance
of small and medium-sized companies with regard to making new investments in production equipment
had already eased towards the end of 2010. It meant that akf group was able to start the year 2011
with a higher number of deals in the pipeline as a result of longer delivery periods. The planned extension
to consumer finance activities for the Vorwerk sales companies will mean that following the German
market, the Spanish and the Italian markets will be accessed and developed.

43
How About a Heifer?
Management Report / akf group / HECTAS / 29
The planned level of new business is therefore much higher than that achieved in the year under review.
To accomplish this, akf group will continue to present itself to potential end customers in the finance sector
as well as to manufacturers and dealers as a reliable and competent partner. To refinance new business,
attractive investment opportunities will be offered to the general public in Germany within the scope of
the deposit-taking business that began in 2010. Additionally, continuing the revolving securitised transactions
and other refinancing alternatives such as bilateral loans and sale of receivables as well as the ABCP
transaction will meet any liquidity requirements at any time. In view of these circumstances, business is
expected to develop far better than in the year under review.
Management Report /
HECTAS Facility Services
International services from a single source
Sustainability concepts implemented
Whatever your investment plans, you can rely on the akf group to lease
or finance pretty much anything that moves – on four wheels or four
legs. The diverse assets that we finance even include cows, and we found
a good financing solution for 43 magnificent specimens. We currently
finance and lease 65,533 mobile assets, from vehicles of all kinds to
complete machinery systems.
HECTAS is one of the leading providers of infrastructural facility management in Europe and offers customers
individual services associated with real estate. The entire market for infrastructural facility management
has become more and more integrated with cross-border services from a single source being increasingly
in demand. The strategic alignment as a pan-European, highly professional, industrial service
provider has proven successful for HECTAS and was consequently pursued further in the year under
review.

30 / At home in the / USA

Hello /
Phoenix
33° 27' N / 112°4' W
If there’s a doormat,
it’s home. Wherever
Mr. and Mrs. Smith
park their mobile four
walls, the first thing
they do is lay the mat
on the doorstep.
This keeps their home
nice and clean – until
it’s time to dust themselves
off and head
for some place new.

32 / Management Report / HECTAS
Overall, the sector continued to suffer in 2010 from the implications of the financial and economic crisis
with – by comparison to previous year – stagnating market volumes. In these difficult market circumstances,
HECTAS successfully maintained its position and achieved an original growth in turnover of 2.0
percent to 198.9 million euros, but with an earnings situation that was not quite satisfactory.
This positive development in turnover – despite increasing pricing pressure in the market – was accomplished
thanks to other performance improvements by the sales organisation in both the key account and
mid-sized segments. Thanks to a sustained customer care approach, the number of terminated contracts
as well as cutbacks in turnover from the existing customer base could be reduced.
Germany remains the largest HECTAS market. Many existing customers invited new tenders for their
facility services. The high quality standards prevailing at HECTAS meant that many of these tenders could
be won back. Overall, HECTAS Germany closed the business year 2010 with a growth in turnover of 7.1
percent and is now running at 92.5 million euros.
By contrast, in the Benelux region HECTAS did not maintain its turnover level (minus 4 percent as against
previous year). Keener price competition made it difficult to acquire new customers. However, improved
and sustained customer care meant that many existing customers could be kept.
A small drop in sales volumes was also recorded by Austria (minus 2 percent), an aspect that was primarily
still due to the after-effects from the crisis year of 2009. By contrast, HECTAS recovered markedly in
Eastern Europe: a more intensive addressing of customers by the sales organisation more than compensated
for the loss in turnover from the year 2009. HECTAS Eastern Europe had recorded an increase of
10.1 percent by the close of the year under review.
The amount of staff at the HECTAS Group did not change noticeably in the year under review when regarded
in terms of the overall sales volume. The main projects in 2010 continued the focus on cushioning the impli-
95 *
The World at Work
HECTAS has a culture – and its employees come from many different
cultures. In fact, 12,000 people of 95 nations work for HECTAS,
maintaining high standards of hygiene, safety and order – in buildings
located across nine European countries. When we’ve done a good
job, the customer’s satisfied smile speaks a language that’s understood
everywhere.

Management Report / HECTAS / Vorwerk Carpets / 33
cations from the financial and economic crisis. Continual intensification of the sales activities, unrelenting
customer care and optimisation of the cost structures were and continue to be the main focus of attention.
Other projects were aimed at widening the service portfolio and at developing new market segments.
Sustainability and “green cleaning” are important themes in the market for infrastructural facility management.
HECTAS has developed feasible concepts in these areas and together with more intensive activities
in public relations, market communication and internet optimisation, managed to enhance brand awareness
and to further develop both quantitatively and qualitatively the perception of the brand HECTAS.
HECTAS sees opportunities in the current business year to develop the company further given the continued
consolidation of the markets for infrastructural facility management in Europe. The current uncertainties
with regard to the general economic circumstances, however, will mean that any further expansion
into new European countries will be pursued cautiously.
Management Report /
Vorwerk Carpets
Stable turnover despite difficult environment
Triumphant yet again in customer survey
Vorwerk Carpets achieved a turnover of 69.4 million euros in a difficult market environment and was thereby
able to stabilise sales at the level of previous year, but with a much improved earnings situation. The
foundations for this development in 2010 were the rapid and resolute measures taken on the cost side as
a consequence of the financial and economic crisis.
Besides exports, the German economic upswing in 2010 was particularly due to new investment dynamism
and an increasing level of demand among private consumers. However, parallels to the German home
textile market and for the carpeting company can only be drawn to a limited extent in this respect. Although
a revival in domestic demand as against previous year became noticeable in the second half of 2010,
a distinct increase in demand for exports and from the contract business sector is not expected until 2011.
Vorwerk Carpets continues to place emphasis on outstanding quality and on the company’s innovative
power and once again captured 1st place in 2010 in a customer survey conducted by the trade journal
“BTH Heimtex/BBE-Kundenbarometer”. Vorwerk Carpets are popular among the trade not only in terms
of the goods themselves – quality and saleability – but also due to the clear sales policy and well organised
and properly functioning logistics operations. Additionally, from the point of view of the trade, Vorwerk
Carpets has the best sales force in the field and the company continues to lead in terms of sales promotions,
progressiveness, future perspectives and amiability.

34 / Management Report / Vorwerk Carpets / Vorwerk Ventures
This means that the foundations for another positive development in the future have been laid. Vorwerk
Carpets wants to participate in the upswing in the German economy and thereby return to the path of
growth that had characterised the business for five years up until the start of the crisis.
The internationalisation strategy is to be continued with high quality, innovative products and new market
segments as well as sales channels are to be actively developed with modified sales approaches. This is
the reason why Vorwerk Carpets started to work together with other licensed and cooperation partners in
2010. Examples for innovative products are the textile tile “SCALE” and “FreeSCALE” by Hadi Teherani.
They open up new horizons in interior decoration in terms of creativity, function and design and break with
the convention of standard tile designs. The new shapes even extend to include fascinating free forms
without any rectangular features in the FreeSCALE range.
*
574.8
km/h
Our Fastest Carpet
Management Report /
Vorwerk Direct Selling Ventures
Advancing young companies
Access to innovations in direct selling
There’s no faster way to travel than on a Vorwerk carpet. After all,
our carpet factory is the exclusive outfitter of the French high-speed
TGV trains – one of which set a speed record on April 3, 2007
when it accelerated to a heady 574.8km/h. We also outfit the German
ICE trains that reach speeds of up to 368km/h. This means that
even at top speed your feet will remain comfortably on the ground.
The Vorwerk Group gains insights into innovations in direct selling through its investment in young enterprises.
In this way, the venture capital company contributes to advancing change and renewal within the
Vorwerk Group. Vorwerk Direct Selling Ventures has been investing in companies pursuing a promising
direct sales concept since 2007. This entity makes its investment decisions without any compelling regard
to the current strategy of the Vorwerk Group, and consequently it has the scope to invest in completely
new segments that have the potential for rapid growth and high profitability.
The objective of Vorwerk Direct Selling Ventures is to create the fundamental conditions for a productive
know-how transfer of expertise between the young entities and the various companies within the Group

Mmmmmh /
The land of
delightful smells
51°16' N / 7°11' E
Favourite foods, fresh laundry and
fragrant apple trees awaken lots of
wonderful memories of childhood
and of home. Join us on a journey
of discovery through the land
of delightful smells – and follow
your nose …*
* Rub your finger lightly over
the marked areas and sniff!
At home in / CHILDHOOD / 35

36 / Management Report / Vorwerk Ventures / Human Resources
to the mutual benefit of both the associated companies and Vorwerk. The venture capital activities also
support Vorwerk in recognising at an early point in time any sweeping developments in direct selling as
well as in finding potential partner companies.
Vorwerk Direct Selling Ventures invests worldwide and has participations in companies in Germany,
Austria and the USA. Activities in 2010 focused on the areas of online and multi-channel direct selling.
Innovative companies such as Dinner-for-Dogs, Enjo, meinauto.de, Ringana and Stowa are a part of the
portfolio at Vorwerk Ventures. Vorwerk Ventures has been making a positive contribution to the Group’s
earnings since 2009.
Management Report /
Human Resources
Number of staff and advisers again increased
Family-friendly personnel policy
The number of people working for Vorwerk worldwide continues to grow. In 2010 an average number of
623,760 people were active either as employees or as self-employed advisers and consultants for the
companies of the Vorwerk Group. The number of employees increased to 22,096, the number of selfemployed
advisers and consultants reached a new record level of 601,664. This was particularly due to
a significant rise in the number of consultants at JAFRA Cosmetics in Mexico and representatives at
Vorwerk Thermomix.
As a reliable family-owned company, the Vorwerk Group allows people everywhere in the world to succeed
with outstanding products and services. Vorwerk offers attractive career opportunities and scope for entrepreneurial
development. Vorwerk’s approach to meeting the ever-increasing challenges posed by a
constantly changing market environment is a centrally-steered and integrated talent management
programme. The objective hereby is to strengthen the management responsibility of the individual, to
identify talent anywhere in the world and to implement systematic successor planning.
The identification and development of our management staff is of particular significance in this respect. It
is the task of management to recognise the strengths and development needs of their staff, to discuss
this with them and to define development measures.
All managers are expected to lead by example: to identify with the objectives of Vorwerk, to demonstrate
exemplary conduct and willingness to perform and to live the Vorwerk culture.

Management Report / Human Resources / 37
A decisive factor here is the recruitment of new management staff for the direct sales organisations. New
growth perspectives can only be exploited if it is also possible in the future to acquire our own management
personalities for sales activities. Vorwerk attaches great importance to cooperation based on trust and open
communication across all divisions and hierarchies. Respect and fairness in dealing with one another are
core values of the family-owned company. The family-friendly personnel policy is reflected both in the
nurturing of the “work-life balance” for staff with various – sometimes quite individual – solutions as well
as in the flexible working time schedules. Staff desires and requirements are taken seriously. Their satisfaction
is evaluated regularly in an international employee survey.
Staff (annual average) 2007 2008 2009 2010
Direct sales
Division Vorwerk Kobold 4,562 4,625 4,416 4,157
Division Vorwerk Thermomix 968 954 1,062 1,377
Division Vorwerk Feelina 23 23 7 0
Division Lux Asia Pacific 3,439 2,411 2,241 2,084
Division JAFRA Cosmetics 1,543 1,635 1,726 1,952
HECTAS Facility Services 11,558 12,105 11,647 11,848
Vorwerk Carpets 342 352 345 329
akf group* 222
Others 135 150 136 127
Total** 22,570 22,255 21,580 22,096
Self-employed sales advisers (annual average)
Division Vorwerk Kobold 9,736 9,335 9,140 8,788
Division Vorwerk Thermomix 16,361 18,569 20,670 21,979
Division Vorwerk Feelina 280 152 4 0
Division Lux Asia Pacific 1,887 1,799 1,622 1,720
Self-employed sales advisers „household appliances“ 28,264 29,855 31,436 32,487
Self-employed sales advisers JAFRA Cosmetics 515,151 525,863 557,815 569,177
Self-employed sales advisers in total 543,415 555,718 589,251 601,664
akf group* 250 220 216
Total Vorwerk workforce 566,235 578,193 611,047 623,760
of which sales advisers ** 546,897 558,872 592,322 604,496
* akf group was evaluated at equity up to and including 2009 and fully consolidated since 2010
** Including employed sales adivisers

Servus /
Linz
48°19' N / 14°18' E

At home in / AUSTRIA / 39

40 / Management Report / Assets and Earnings Situation
Management Report /
Assets and Earnings Situation
The assets situation of the Vorwerk Group as of balance sheet date on 31 December 2010 is characterised
by a first-time consolidation of the akf companies.
886.6 million euros of the increase in the balance sheet total of 986.1 million euros (= 57 percent) are accounted
for by the assumption of all the asset and debt items from the companies of akf group within the
scope of their full inclusion in the consolidated financial statements. The considerable increase in balance
sheet total within this context is due to the first-time inclusion of an amount of 501.9 million euros for rental
assets from leasing transactions. The decline in the level of participations in associated companies due to a
change in the consolidation approach at akf group (transitional consolidation to full consolidation) have been
set against an inclusion in the financial assets of a bond issued by akf group in an amount of 31.5 million euros.
The increase in the level of trade accounts receivable is mainly due to the increase in the Kobold and
Thermomix (high ticket items) segments as well as at JAFRA and corresponds to the development in turnover.
To avoid any supply bottlenecks, inventory levels were correspondingly increased in these divisions.
The liquid resources and short-term marketable securities amount to 658,2 million euros and are now only
slightly below the level of previous year despite repayment of financial obligations in an amount of 132.0
million euros. The market value of the securities continues to be above the book value. The financial obligations
increased by 331.5 million euros as a result of the inclusion of the mainly third-party financed akf
group. Besides other liabilities and provisions/accruals, the items on the liabilities side are characterised
by customer obligations in an amount of 340.4 million euros and the deferred income item that includes
rental receivables sold to third-party banks for the purpose of refinancing the rental assets of akf group.
The proportion of partners’ equity is running at 41 percent despite the distinct increase in balance sheet
total. A partners’ equity capital ratio of 61 percent would result in comparison with 53 percent in the previous
year in the context of an assumed unchanged consolidation group (akf at equity). The equity/fixed
assets ratio is at 100 percent. Moreover, 14 percent of the receivables and other assets are financed longterm
with equity capital.
Vorwerk achieved a Group turnover volume of 2,372.0 million euros in the business year, a figure that was
30 percent higher than that achieved in previous year. Even without taking the turnover at akf group into
account, a significant increase in sales proceeds (gross) of 9 percent was reported. Expenditure on
materials rose over-proportionately by 17 percent, primarily on account of the development in raw
material prices as well as the rate of exchange. The result from participations reported in previous year
was mainly attributable in the year under review to the full consolidation of akf group.

Management Report / Financial Situation / 41
The first-time full consolidation of akf group consequently led to an increase in personnel costs of 4 percent.
Although there was a significant reduction in expenditure for retirement pensions on account of the risk
provisions for pension obligations already made in the previous year, wages and salaries increased in
accordance with the number of staff working at the various divisions, thus resulting in a slight decrease in
personnel costs in comparison with the previous year even without akf group.
Financial Situation
Politicians, central banks and financial markets were increasingly forced to come to terms with the debt
crisis of individual member states of the eurozone throughout the past year. Global share markets developed
positively from the point of view of a euro investor, something that was however mainly attributable
to the currency effect and thereby to the weakening of the euro. The interest rate for German bonds fell
to a historical low, whereas bonds issued by the so-called “PIIGS” reflected a much higher rate of interest.
The Vorwerk Group (without akf group) took advantage of the developments on the financial markets to
slightly enhance its global position in equity investments and to adjust its regional position. The proportion of
alternative investment strategies was also extended in order to stabilise earnings and cash flow objectives.
In turn, the good development in investments in securities with fixed interest rates could be used to realise
earnings and to greatly reduce the financial obligations from the sales proceeds. Our external financial
obligations were thereby reduced to 43 million euros. This amount will eventually become due for payment
in the first two months of the 2011 business year.
Overall, the Vorwerk Group managed to achieve a result that is well above plan when considering the
realised as well as unrealised earnings from financial management. To be able to better and more efficiently
control the risks involved in the financial activities, attention was focused on a centralisation of the cash
holdings, the management of currency and raw material risks and Group-wide cash management.
akf group is made up of a banking operation and a leasing sector. Active business transactions were
refinanced with matching maturities as in previous years. Besides the classic form of refinancing using
bank loans, a revolving ABCP programme and a similarly open-ended ABS bond continued to be used for
refinancing purposes in the year under review with new receivables being sold. These receivables
continue to be managed by akf bank.
Refinancing in the leasing sector is mainly effected through the forfeiture of leasing receivables falling due
in the future to third-party banks – with which general agreements exist with respect to the purchase of
such receivables – and through short and medium-term bank loans.

42 / Management Report / Opportunities and Risks
Management Report /
Opportunities and Risks
The Vorwerk Group has diversified significantly over the past ten years and is today operational across various
business segments, product groups and countries. The Group has good opportunities of participating in the
positive developments of the markets in the future, too, on account of this structure. The focus will continue
to be on direct selling in this respect and thereby on a sales approach that is still growing dynamically. Since
Vorwerk combines different types of direct selling “under one roof” and ensures regular know-how transfer
between the product divisions, new growth trends can be recognised at an early point in time and taken advantage
of to further develop the company.
At the same time the Vorwerk Group is exposed to a range of risks. Effective planning, reporting and monitoring
systems have been put in place in the individual companies to protect against risks. In principle, uniform guidelines
apply across all divisions. They are defined by the Executive Board at Vorwerk & Co. KG and are monitored
in the form of a reporting process to ensure they are adhered to. The processes are continually reviewed – even
in manufacturing – and adjusted when risks are identified.
The investment strategy at the Vorwerk Group primarily pursues the target of securing assets long-term.
The internal Finance Committee regularly reviews the strategy with the aim of avoiding any identified risks.
To further improve the opportunity/risk profile, the portfolio was again supplemented in 2010 with new asset
categories. Risks ensuing from exchange rate fluctuations were also taken into consideration and hedged as
far as possible for operative business activities.
Opportunities and risks for the future development of the Vorwerk Group ensue from the focus on direct selling.
The great opportunities offered by this sales channel are to be seen against the background of specific risks.
The proportion of direct sales, for instance, is relatively low when seen against the overall level of sales by the
trade. This could lead to a lack of perception among legislators at national and international level. Vorwerk
therefore runs PR campaigns targeted at decision-makers, is a member of associations such as Direct Selling
Europe (DSE) and maintains its own information bureau at the European Union in Brussels. The objective is to
provide information about the development opportunities offered by direct selling and to sensitise decisionmakers
to the specifics of the system. In particular, the attractive income and career opportunities for customer
advisers and consultants may not be allowed to be pushed into the background of public perception. Reputable
direct selling creates the possibility worldwide of being able to achieve a self-earned income that is based on
the principles of individual performance and commitment.

Management Report / Opportunities and Risks / 43
To further spread the risks, Vorwerk pursues a policy of internationalisation of the business segments.
The target is to further reduce the risks that could result from an unbalanced dependency on the development
of individual country companies.
The Vorwerk Group operates in a permanently changing competitive environment in which the high quality of
the products continues to play a decisive role in the differentiation to potential competitors.
Direct selling is principally very much dependent on the recruitment and training of sales advisers and management
staff. A centrally-steered, talent-management programme and a Group-wide personnel policy based on
uniform guidelines take this factor into account.
A differentiated approach also has to be taken with respect to the opportunities and risks at akf group. In the
future, too, other competing institutions will withdraw from the leasing markets serviced by the bank’s sister
companies due to the stricter requirements applying to the implementation of internal accountability systems,
reporting obligations stipulated by regulatory law and the still difficult refinancing conditions. This will open up
opportunities to further increase the purchase of receivables from the sister companies.
As long as the problems of the single European currency – ensuing from the difficulties of some member
states of the currency union – have not been solved, it cannot be excluded that banks with exposures in the
corresponding bonds of these countries will again come under pressure and that this could once more make
refinancing more difficult on the interbank markets. The diversification of the refinancing base through the
extension of the deposit-taking business will make the bank more independent in this respect.
Overall, existing default risks and those ensuing from future developments continue to be steered and
monitored on the basis of proven, exacting standards and the IT-aided rating system. Following the 2009 and
2010 business years in which high provisions for risks had to be made on account of the general economic
environment, a distinct easing of the situation is expected for the current business year.
From today’s point of view there are no risks that could have a negative impact on the long-term existence of
the Vorwerk Group. In recent years the high equity ratio and the improvement in the worldwide strategic
position have led to the creation of higher, risk-covering volumes. Moreover, this broad base on the global
market means that Vorwerk is generally well protected against implications for the corporation ensuing from
problems experienced in regional, industry or product-specific areas.
There have been no events of any material significance that have occurred since the balance sheet date
for the year 2010.

44 / At home in / THAILAND
/
Pattani
6°50' N / 101°20' E
A popular pet in Thailand.
The gecko.

Consolidated
Financial Statements /
2010
46 Consolidated
Balance Sheet
48 Consolidated Profit
and Loss Account
50 Movements in
Fixed Assets
52 Explanatory Notes
58 Auditors’ Report
Consolidated Financial Situation / 45

46 / Consolidated Financial Statements / Consolidated Balance Sheet
Consolidated Balance Sheet
As at 31 December 2010 akf at equity
31.12.2010 31.12.2010 31.12.2009
Assets € 000 € 000 € 000
A. Fixed Assets
I. Intangible Assets
1. Concessions, patents, trademarks and similar rights
as well as licences thereto 16,643 14,861 12,845
2. Goodwill 261,561 261,561 272,756
3. Payments on account 65 65 1,167
II. Tangible Assets
1. Land, land rights and buildings,
278,269 276,487 286,768
including buildings on third-party land 55,368 55,368 51,981
2. Technical plants and machinery 51,109 51,109 49,137
3. Other fixtures, fittings and office equipment 36.470 35,288 30,687
4. Rental assets 501.901 0 0
5. Payments on account and assets under construction 4,490 4,490 8,194
III. Financial Assets
649,338 146,255 139,999
1. Participations in associated companies 310 61,721 49,269
2. Other participations 13,455 13,365 8,378
3. Long-term investments 41,049 9,548 9,232
4. Other loans 155 155 316
54.969 84,789 67,195
B. Current Assets
I. Inventories
Fixed Assets 982.576 507,531 493,962
1. Raw materials and consumables 27,407 27,407 22,855
2. Work in progress, services in progress 4,746 4,746 6,070
3. Finished products and merchandise 66,363 66,363 55,836
4. Payments on account 93 93 322
II. Receivables and other Assets
98,609 98,609 85,083
1. Trade accounts receivable; 410,537 410,537 379,711
of which with a remaining term of more than 1 year: (1,268) (1,268) (1,244)
2. Accounts receivable from customers from banking and leasing
business;
440,073 0 0
of which with a remaining term of more than 1 year: (1,137) (0) (0)
3. Accounts receivable from associated companies 357 7,414 11,945
4. Other assets; 77,339 65,610 74,498
of which with a remaining term of more than 1 year: (4,228) (2,507) (2,268)
928,306 483,561 466,154
III. Other Securities 356,076 359,076 418,426
IV. Cheques, Cash in Hand, Bank Balances 302,178 334,533 251,345
Current Assets 1,685,169 1,275,779 1,221,008
C. Prepaid Expenses and Deferred Charges 9,596 8,496 8,114
D. Deferred Tax Assets 42,960 41,886 11,073
2,720,301 1,833,692 1,734,157

Consolidated Financial Statements / Consolidated Balance Sheet / 47
As at 31 December 2010 akf at equity
31.12.2010 31.12.2010 31.12.2009
Equity and Liabilities € 000 € 000 € 000
A. Partners‘ Equity
1. Capital shares, reserves, capital contributions
of silent partners, net profit of parent company,
currency conversion difference 1,110,386 1,115,967 919,211
2. Compensating item for minority interests
in capital and reserves 1,493 1,493 344
in profits -129 -129 670
1,364 1,364 1,014
B. Provisions and Accruals
1,111,750 1,117,331 920,225
1. Provisions for pensions and similar obligations 122,626 120,303 118,672
2. Provisions for taxes 34,406 33,023 25,774
3. Other provisions and accruals 179,086 172.249 149,672
C. Liabilities
336,118 325,575 294,118
1. Amounts payable to banks 505,742 42,523 174,259
2. Advance payments received 29,474 29,474 18,903
3. Trade accounts payable 340,363 59,432 48,913
4. Notes payable 89 89 93
5. Amounts payable to associated companies 2,979 3,148 2,071
6. Other liabilities; 260,875 230,141 253,104
of which taxes: (52,066) (51,247) (51,675)
of which within the scope of social security: (12,984) (12,723) (11,027)
1,139,522 364,807 497,343
D. Deferred Income 130,019 23,087 22,471
E. Deferred Tax Liabilities 2,892 2,892 0
2,720,301 1,833,692 1,734,157
Contingent Liabilities
1. Bills of exchange 0 0 197
2. Secondary liability for pension obligations
transferred to the relief fund 9,840 9,840 10,195
3. Liability for sureties 508 478 492
4. Irrevocable lending commitments 55,065 0 0

48 / Consolidated Financial Statements / Consolidated Profit and Loss Account
Consolidated Profi t and
Loss Account
For the Period 1 January to 31 December 2010 akf at equity
2010 2010 2009
€ 000 € 000 € 000
1. Sales revenue (gross)
a) Revenue from sales (gross) 1,996,324 1,996,593 1,826,408
b) Income from loan and leasing transactions (gross) 375,681 0 0
2,372,005 1,996,593 1,826,408
less sales tax 346,534 294,660 267,676
2,025,471 1,701,933 1,558,732
2. Change in finished goods and work in progress 11,610 11,610 -13,515
3. Own work capitalised 372 372 1,534
2,037,453 1,713,915 1,546,751
4. Other operating income; 108,252 107,134 70,115
of which income from currency conversion:
5. Raw materials and consumables:
a) Expenditure on materials
(9,497) (9,497) (0)
and purchased merchandise 269,158 269,161 227,564
b) Expenditure on purchased services 21,363 21,363 19,826
290,521 290,524 247,390
6. Expenditure from loan and leasing transactions 132,086 0 0
7. Personnel costs:
1,723,098 1,530,525 1,369,476
a) Wages and salaries
b) Social security contributions
390,718 375,335 363,032
and pensions; 89,308 86,447 103,184
of which for retirement pensions: (12,650) (11,490) (31,311)
8. Depreciation and amortization on tangible and
480,026 461,782 466,216
intangible fixed assets 185,097 41,904 39,046
9. Result from participations; 1,137 13,626 8,176
of which from associated companies:
10. Income from other securities and
(44) (12,536) (7,086)
long-term loans 224 224 122
11. Other interest and similar income; 54,294 52,718 50,343
of which income from the discounting of provisions:
12. Write-down of financial assets and
(881) (881) (0)
marketable securities 19 19 45
13. Interest and similar charges; 29,017 24,429 11,270
of which expenditure from accrued interest on provisions: (8,040) (7,964) (0)
14. Collective heading; 1,084,594 1,068,959 911,540
of which expenditure from currency conversion;
Other items not shown separately
(Other operating costs, taxes, net profit for the year)
(14,771) (14,771) (0)

Number
of the year
*
12,899,600
doors opened to our advisers in 2010,
inviting them to demonstrate the advantages
of the Vorwerk Group products.
Consolidated Financial Statements / 49

50 / Consolidated Financial Statements / Movements in Fixed Assets
Movements in Fixed Assets
From 1 January to 31 December 2010
As at
1.1.2010
Gross values
Currency
conversion
differences Additions* Additions Disposals
Book
transfers
As at
31.12.2010
€ 000 € 000 € 000 € 000 € 000 € 000 € 000
I. Intangible Assets
1. Concessions, patents,
trademarks and similar rights
as well as licenses thereto 39,041 3,633 6,954 1,899 1,524 2,016 52,019
2. Goodwill 335,177 — — — — — 335,177
3. Payments on account 1,230 87 — 65 47 -1,270 65
II. Tangible Assets
1. Land, land rights and
buildings, including
375,448 3,720 6,954 1,964 1,571 746 387,261
buildings on third-party land
2. Technical plants
118,068 4,308 — 2,522 534 1,253 125,617
and machinery
3. Other fixtures, fittings
204,888 2,585 — 13,399 5,496 1,372 216,748
and office equipment 123,159 4,311 5,724 15,541 6,354 394 142,775
4. Rental assets
5. Payments on account and
— — 905,324 185,628 236,398 68 854,622
assets under construction 8,194 902 — 6,852 7,625 -3,833 4,490
III. Financial Assets
1. Participations in
454,309 12,106 911,048 223,942 256,407 -746 1,344,252
associated companies 49,269 — — 10 48,969* — 310
2. Other participations 8,393 — 136 5,186 200 — 13,515
3. Long-terms investments 9,285 — 105,500 632 74,312 — 41,105
4. Other loans 320 12 — — 175 — 157
67,267 12 105,636 5,828 123,656 — 55,087
897,024 15,838 1,023,638 231,734 381,634 — 1,786,600
* Additions/disposals due to change in the consolidated group

As at
1.1.2010
Consolidated Financial Statements / Movements in Fixed Assets / 51
Accumulated depreciation / amortization Net values
Currency
conversion
differences Additions* Additions Disposals
As at
31.12.2010
As at
31.12.2010
As at
31.12.2009
€ 000 € 000 € 000 € 000 € 000 € 000 € 000 € 000
26,196 2,066 5,157 3,375 1,418 35,376 16,643 12,845
62,421 — — 11,195 — 73,616 261,561 272,756
63 — — — 63 — 65 1,167
88,680 2,066 5,157 14,570 1,481 108,992 278,269 286,768
66,087 1,099 — 3,298 235 70,249 55,368 51,981
155,751 1,206 — 13,431 4,749 165,639 51,109 49,137
92,472 3,026 4,268 11,781 5,278 106,305 36,470 30,687
— — 355,226 142,015 144,520 352,721 501,901 —
— — — — — — 4,490 8,194
314,310 5,367 359,494 170,525 154,782 694,914 649,338 139,999
— — — — — — 310 49,269
15 — 45 — — 60 13,455 8,378
53 — — 7 4 56 41,049 9,232
4 — — — 2 2 155 316
72 — 45 7 6 118 54,969 67,195
403,062 7,433 364,696 185,102 156,269 804,024 982,576 493,962

52 / Consolidated Financial Statements / Explanatory Notes
Explanatory Notes to consolidated Financial Statements
pursuant to §§ 13 (3) in association with 5 (5) PublG
I. Introductory Remarks
Vorwerk & Co. KG is publicly disclosing its worldwide consolidated
financial statements for the 2010 business year in accordance with
the requirements of the German Publication and Disclosure Law
(PublG) and the German Commercial Code (HGB). The requirements
of the German Accounting Law Modernisation Act (BilMoG)
– a mandatory standard since 1 January 2010 – have been applied
for the first time. Figures from previous years have permissibly not
been adjusted (pursuant to Article 67 Section 8, sentence 2 of the
German Commercial Code Introductory Act in its new version).
Apart from the information disclosed pursuant to § 313 Section 2
of the HGB, this Annual Report complies with the requirements of
§ 13 of the PublG in association with §§ 294 to 315 of the HGB.
II. Consolidated Group
The parent company is Vorwerk & Co. KG (Holding Company). The
Group companies do business in the following commercial segments:
manufacture and direct sale of high quality household appliances
and cosmetics as well as facial and body-care products,
infrastructural facility services and carpeting. One newly-founded
company and another entity pursuant to § 290 Section 2 No. 4 of
the HGB in its new version have been included in the consolidated
figures for the first time in the year under review. Nine companies
have been removed from the consolidated group because they
were either liquidated or merged. A foreign-based logistics company
has been included in the figures and evaluated at equity as an
associated company in accordance with the provisions of §§ 311
and 312 of the HGB. Pursuant to § 311 Section 2 of the HGB, two
associated companies of less significance have not been incorporated
in the consolidated figures at equity, but instead have been
included at acquisition cost.
The akf companies and their substantial subsidiaries have been
fully included for the first time in the consolidated figures for the
year 2010 on account of the parent/subsidiary company relationship
and the control that can be exercised (§ 290 Section 1 of the
HGB in its new version in association with § 11 Section 1 of the
PublG in its new version). These companies had been evaluated at
equity up to and including 2009.
III. Classification, Accounting and Valuation Methods
The balance sheet and the profit and loss account are laid out for
reporting purposes in accordance with the format stipulated in
§§ 290 ff, 266 and 275 of the HGB for corporate entities. On account
of the first-time full consolidation of akf group, the balance sheet
and the profit and loss account have been enlarged to include banking
and leasing-specific items, insofar as the assets and liabilities
included there could not be allocated to already existing items. For
disclosure purposes, the option provided for under the German
Publication and Disclosure Law (to show capital, reserves and
profit as partners’ equity) has been exercised. In this respect the
investments of silent partners are also included in partners’ equity
since they are of an equity-capital-similar nature because they are
provided with a subordination clause. Moreover, with respect to
§ 13 Section 3 sentence 2 of the PublG, information is also provided
in the explanatory notes to the consolidated financial statements
pursuant to § 5 Section 5 of the same PublG. In this respect the
taxes and annual surplus in the consolidated profit and loss account
(for disclosure) as a part of the explanatory notes pursuant to
§ 5 Section 5 of the PublG have been included with other operating
costs under the collective heading other items not shown separately.
Vorwerk & Co. KG’s accounting and valuation principles also
pertain to the consolidated financial statements. Valuations at akf
group have been adopted unchanged pursuant to § 308 Section 2,
sentence 2 of the HGB. The financial statements of non-German
subsidiaries drawn up in accordance with national rules and regulations
that vary from German legal requirements have been adjusted
in line with what is known as the Handelsbilanz II (Type II Commercial
Balance Sheet). The valuation methods applied can be
regarded as a uniform valuation as defined in § 308 Section 1 of the
HGB. They remain largely unchanged from those applied in previous
year apart from some modifications that will be explained
below as a consequence of BilMoG. Purchased intangible assets
have been capitalised at their cost of procurement and their probable
useful service life has been correspondingly depreciated linearly,
pro rata in their year of acquisition.
The period for scheduled straight-line depreciation of goodwill
acquired against payment is 30 years.
In the case of tangible fixed assets and rental assets (allowing for
contractual periods and residual book values), where the period of
usefulness is limited, the acquisition or manufacturing cost has

een depreciated in accordance with the probable useful service life
at scheduled straight-line rates. Depreciation of additions to the tang-
ible fixed assets is effected on a pro rata basis as a matter of principle.
Should the fair market value of individual assets be below their
book value, additional non-scheduled write-downs will be made in
the case of a probable continuation of the reduction in value.
Financial assets have been valued at cost or lower attributable value
and loans at nominal value. The movements in fixed assets can be
seen in the corresponding “Movements in Fixed Assets” table.
Inventory has been valued at average acquisition cost or manufacturing
cost in accordance with the principle of lowest value. Apart
from the direct costs, the manufacturing costs only include reasonable
proportions of the material and manufacturing overheads
involved as well as the depreciation on the fixed assets caused by
manufacturing.
Receivables and other assets have been shown at nominal value
less appropriate provisions for bad debts and other write-downs.
Claims against customers from factoring and hire purchase transactions
have been reported at their present net value less an individual
or general level of provision.
Marketable securities have been evaluated at acquisition cost or at
the lower attributable value as of balance sheet date. Liquid funds
have been stated at nominal value.
Receivables, other assets, obligations, inventory and liquid funds
in foreign currencies have been valued at the mean spot exchange
rate on balance sheet date. In the case of foreign currency items
with a remaining term of more than one year, the acquisition cost
and realisation principle have been adopted. The requirements of
§ 340 h of the HGB have been applied to the foreign currency conversion
of the assets and liabilities of the companies of akf group.
Revaluations have been made if applicable in accordance with
§ 253 Section 5 of the HGB in its new version. All identifiable risks
and uncertain liabilities have been appropriately considered to their
settlement amount in the formation of the provisions.
To duly consider the risks in the accrual amounts for pensions, duly
determined in accordance with the projected unit credit method
and on the basis of the Heubeck 2005G guideline tables, an average
market interest rate of 5.15 percent has been generally applied
as a discount, an amount that results from a presupposed 15 year
term. The trend in salaries has been assumed to be 2.5 percent, in
pensions 1.4 percent. The impact on earnings from this first appli-
Consolidated Financial Statements / Explanatory Notes / 53
cation of the projected unit credit method to evaluate pension
accruals amounted to 1.1 million euros and has been included
under extraordinary expenditure.
Other accruals and provisions with a remaining term of more than
one year have been discounted – in accordance with their remaining
term – at the average market interest rate prevailing over the
past seven business years. In evaluating semi-retirement and anniversary
provisions, the same valuation parameters as for pension
obligations have been fundamentally applied, apart from caserelated,
remaining terms for semi-retirement obligations.
Liabilities have been shown at the amount payable. The capital with
participation rights – included under other liabilities – has been
reported at nominal value.
Deferred income mainly includes special rental payments and
advanced rental payments attributable to future business years as
well as accrued net present cash values from receivables sold to
banks. Such amounts will be reversed linearly in accordance with
the duration and pursuant to the principle of loss-free evaluation.
IV. Foreign Currency Conversion
All financial statements of the subsidiary companies of the Group
that are included in the consolidation, but which are located outside
the eurozone have been converted into euros from the respective
currency using the modified closing rate method. The items of the
balance sheet – with the exception of the equity capital item that is
converted into euro at a historical value – were converted at the
mean spot exchange rate. The items of the profit and loss account
are converted at average rates.
Income and expenditure shown in the corresponding profit and
loss accounts have been converted at the average rate of exchange
for the year 2010 (modified closing rate valuation method). The
resulting differences of 0.4 million euros after conversion have
been included without profit effect within the partners’ equity. The
conversion effects resulting from the change in rates between balance
sheet dates led to a 13.5 million euro increase in partners’
equity, but having no effect on profits.
V. Balance Sheet Date and Consolidation Principles
The companies included in the consolidated financial statements
all have 31 December as their balance sheet date with the exception
of one company that has its close of year on 31 March. Consolidation
of the balance sheets and profit and loss accounts included
therein was carried out in accordance with the following principles:

54 / Consolidated Financial Statements / Explanatory Notes
1. Capital Consolidation
Capital consolidation for acquisitions prior to 31 December 2009
was effected in accordance with the book value method. Capital
consolidation for first-time consolidations in the 2010 business
year has been carried out pursuant to the revaluation method. In
this respect the book values of the holdings have been set against
the equity capital level of the corresponding subsidiary companies
including reserves and the result brought forward at the date of
acquisition following a revaluation of the individual balance sheet
items and disclosure of hidden reserves.
The first-time consolidation of the JAFRA Group has been stated
as goodwill after the appropriation of hidden reserves to assets and
liabilities. Pursuant to § 253 Section 3 of the HGB, the goodwill of
the JAFRA Group will be written off over the individual operational
lifetime of more than five years. This is derived from the use of the
brand and brand-similar benefits which, besides the sales system
and the expertise of the staff in R&D, constitute essential elements
of the goodwill of the company. The remaining debit differences
from previous years have been stated separately in the partners’
equity. Should any credit differences have resulted from this netting
in previous years, such have been incorporated into the
reserves in previous years on account of their reserve character.
There were no differences ensuing from the first-time consolidation
in the business year under review.
The participating interests of other shareholders in the equity
capital subject to consolidation and in the results of the subsidiary
companies included in the consolidation have been shown in the
compensating item for minority interests.
The consolidation of a foreign-based logistics company at equity
has been effected in accordance with the book value method. In
this respect the valuation principles prevailing at this associated
company have been adopted without change. Vorwerk’s share of
profits from companies consolidated at equity has been included in
the profit and loss account as the result from participations in associated
companies.
2. Consolidation of Debt
Amounts due as receivables or payables in respect of companies
within the consolidated group have been offset against each other
for consolidation purposes (§ 303 of the HGB).
3. Consolidation of Earnings
The consolidation of expenditure and income contained in the
items shown in the consolidated profit and loss account comply
with § 305 of the HGB. Inter-company sales and the corresponding
level of expenditure as well as other, mutual inter-company
expenditure and income from the consolidated companies’ profit
and loss accounts have been set against each other.
4. Deferred Taxation
Deferred taxation is assessed on the basis of the differences
between the commercial and taxation balance sheets, insofar as
these indicate a tax burden or relief. Moreover, deferred taxation
considers possible losses and interest carried forward, provided
they are expected to be taken up within the next five years.
There is no statement of a surplus between the deferred tax assets
and liabilities in the individual financial statements. Contrary to this,
advantage is taken of the right – pursuant to § 274 Section 1, sentence
2 in association with § 300 Section 2, sentence 2 of the HGB
– to exercise this option to state the surplus in the consolidated
financial statements. Deferred tax assets and liabilities are netted
against one another and reported when the preconditions for such
prevail. For the purposes of the consolidated financial statements,
deferred taxation as per § 306 of the HGB is aggregated from the
individual financial statements pursuant to § 274 of the HGB.
Deferred taxation is not scheduled for variances in the first-time
reporting of the value of company goodwill. Additionally, deferred
taxation is not scheduled for differences between the valuation of
a subsidiary, associated company or joint venture from a taxation
point of view and the commercial evaluation of the net assets
reported in the consolidated financial statements.
As of 31 December 2010 future tax burden/relief calculated from
deviating valuations in the tax balance sheet ensued largely from
the amounts receiveable and payable from / to associated companies,
the inventory levels and provisions for pensions. When calculating
taxation for consolidation entries affecting profits pursuant
to § 306 of the HGB, a uniform Group-wide average rate of taxation
of 30 percent has been applied in general to the consolidation of
debt and the elimination of intermediate results; otherwise company-specific
tax rates have been applied. The calculation of
deferred taxation for individual financial statements has been
effected on the basis of tax rates applying for individual companies.

VI. Other Statutory Disclosures Pursuant to § 314 of the HGB
and Explanatory Notes to Various Items in the Consolidated
Balance Sheet and Consolidated Profit and Loss Account
1. Remaining Terms for Liabilities
2. Securitised Liabilities
akf group issued a bearer bond to a third party in the 2008 business
year in a total amount of 27 million euros and a term of five years,
an item that is stated under other liabilities.
3. Contingent Liabilities, Other Financial Commitments and
Off-balance Transactions
Obligations arising from rental, tenancy and leasing contracts
amounted to 93.1 million euros for the following years as of balance
sheet date, 39.0 million euros of which fall due in 2011. Order obligations
for investments in tangible fixed assets amount to 4.0 million
euros (2.8 million euros in previous year). There are long-term
obligations arising from contracts with suppliers to an amount of
28.3 million euros as of balance sheet date.
There are no future obligations arising from off-balance-sheet transactions
that are of significance for the assessment of the financial
situation.
The risk of recourse from the joint liability for the pension obligations
that have been transferred to the relief fund can more or less
be excluded since the fund can meet its long-term obligations from
its own cash assets.
The risk of guarantees being called upon is estimated to be low
since it is mostly a case of contract fulfilment guarantees that are
limited to the term of the individual agreement.
Consolidated Financial Statements / Explanatory Notes / 55
31.12.2010 31.12.2009
in € 000
Remaining
term < 1 y
Remaining
term > 5 y Total
Remaining
term < 1 y
Remaining
term > 5 y Total
Amounts payable to banks 289,128 0 505,742 49,111 0 174,259
Advanced payments received for orders 29,474 0 29,474 18,903 0 18,903
Trade accounts payable 339,113 102 340,363 48,718 0 48,913
Bills of exchange payable 89 0 89 93 0 93
Amounts payable to associated companies 2,979 0 2,979 2,071 0 2,071
Other liabilities 252,161 2,363 260,875 244,430 3,277 253,104
TOTAL liabilities 912,944 2,465 1,139,522 363,326 3,277 497,343
4. Profit and Loss Account
Group sales (incl. sales tax)
2009 2010
Breakdown by Region million € million €
Germany 428.8 800.8
Europe 952.0 1,077.3
North America 363.8 422.0
Rest of world 81.8 71.9
Total 1,826.4 2,372.0
Group sales divided according to business division are shown in the
Group Management Report.
Extraordinary income of 2.0 million euros and extraordinary expenditure
in an amount of 2.9 million euros resulted exclusively
from the first-time application of BilMoG.
5. Present Value of Derivative Financial Instruments
Exchange rate futures and options as well as interest rate swaps
and options are used at the Vorwerk Group for hedging purposes
both for operative business activities as well as in the area of foreign
currency financing. The present value of a derivative financial
instrument is the price at which a party would acquire the rights
and/or obligations entailed in this financial instrument from another
party. The book and present values of the financial instruments of
the Vorwerk Group are reported as follows:

56 / Consolidated Financial Statements / Explanatory Notes
Derivative financial instruments
Nominal value Book value Present value
in € 000 31.12.2010
Currency options 42,505 - 1,396 - 1,285
Currency futures 38,128 -329 1,703
Interest rate swaps 544,520 - 1,558 - 2,581
Interest rate options 265,000 1,026 - 5,179
Currency swaps 4,366 0 0
Interest rate futures 70,700 0 0
Commodity swaps 2,186 0 356
Provisions for threatening losses in an amount of 1.7 million euros
have been formed to cover eventualities in exchange rate future
transactions and on account of negative market values for the interest
rate swaps entered into by way of a hedge at the portfolio level.
The nominal value of the derivative financial instruments is determined
using the exchange rate valuation on closing date. The present
values of exchange rate futures are determined according to
the closing rate as of balance sheet date, taking forward discounts
and premiums into account. The present values of currency options
are assessed on the basis of option price models pursuant to Black
& Scholes. The present values of interest rate hedging instruments
(interest rate swaps) as well as commodity swaps are determined
on the basis of discounted, anticipated future cash flows with the
current market interest rates or market interest rates for raw materials
for the remaining term of the financial instruments being
applied. The interest rate swap in JPY is already included in an
accounting unit and is therefore not taken into account from a balance
sheet point of view.
Transactions are allocated to the banking book at akf group and
serve the purpose of securing the interest rate risks there. The
credit-equivalent amount calculated in accordance with the markto-market
method is running at 3.824 million euros. The sum of the
fair values derived using the mark-to-market method, but which are
not directly associated with an actual, fixed-interest derivative
transaction amount to -6.576 million euros. Provisions in an amount
of 1.558 million euros have been formed for transactions showing
a negative market value.
6. Accounting of Hedging Instruments
At the Vorwerk Group basic transactions and financial instruments
with divergent changes in value or payment flows are comprised
to accounting units.
This applied to financial obligations in a nominal amount of 2.4 billion
JPY in the year under review. In this respect currency fluctuations
were secured by means of a micro-hedge with a currency future in
the same nominal amount as the basic transaction.
Additionally, possible interest rate fluctuations were similarly
hedged to the same nominal value through the conclusion of a
payer swap transaction. In this case, too, it was a micro-hedge.
Both the basic transaction and the hedging instruments reach
maturity on 28 February 2011.
Changes to the fair values:
Securing transactions in micro-hedge + 4.1 million €
Basic transaction in micro-hedge - 4.1 million €
Since the value-determining factors between the basic transaction
and the hedging instruments in respect of the currency, nominal
amount, term and interest rate dates conform to one another, an
effectiveness of 100 percent can be expected until maturity.
7. Information on Shares in Investment Funds
The Vorwerk Group holds 100 percent of the units of the VWUC
Fund. The VWUC Fund has mixed fund assets pursuant to German
investment law.
The target of the investment policy is to generate an attractive
increase in value in euros with a longer-term strategy. To achieve
this investment objective, the assets are invested in fixed-interest
securities as well as money market instruments and liquid funds.
Moreover, the Fund can invest in securities on the equity markets
and in units of open and closed investment funds (shares, commodities
and real estate). To secure as well as to invest and efficiently
manage the assets, the Fund may, in addition, also deploy
derivatives and other techniques and instruments as well as securities
lending.
Value of the units and variance to the book value
in € 000 Book value Market value Difference
VWUC Fund 289,913 390,346 100,433
Vorwerk received a gross dividend of € 11.863 million euros
(2.6021 € per unit) for the fund’s business year (1 December 2009 –
30 November 2010).

The Fund’s units could be redeemed on any stock exchange trading
day in the year.
The Fund’s units were evaluated throughout the entire year in
accordance with the lowest value principle.
8. Other Information
No market-uncustomary business has been transacted by the parent
company or by the subsidiaries with related companies or persons.
The fees for the auditors amounted to 496,900 euros, for tax consultancy
44,600 euros and for other services rendered 26,800
euros in the year under review.
Average annual staffing level
2009 2010
Employees* 21,580 22,096
Direct sales personnel 589,251 601,664
Vorwerk Kobold 9,140 8,788
Vorwerk Thermomix 20,670 21,979
Vorwerk Feelina 4 0
JAFRA Cosmetics 557,815 569,177
Lux Asia Pacific 1,622 1,720
*Including employed sales advisers; akf group fully consolidated since 2010
Management at the parent company Vorwerk & Co. KG is in the
hands of the Managing Partners Walter Muyres, Jüchen, Reiner
Strecker, Wuppertal (since 1 January 2010) and Peter Oberegger,
Düsseldorf (until 31 December 2010).
Wuppertal, 15 April 2011
Walter Muyres
Reiner Strecker
Consolidated Financial Statements / Explanatory Notes / 57

58 / Consolidated Financial Statements / Auditors’ Report
Auditors’ Report
The foregoing consolidated balance sheet and profit and loss
account, the explanatory notes (without any listing of investment
holdings) together with the Group Management Report as intended
for publication comply with the legal requirements.
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Essen, expressed the following opinion on
the complete consolidated financial statements and the Group
Management Report:
“Audit opinion
We have audited the consolidated financial statements –
prepared by the Vorwerk & Co. KG, Wuppertal, comprising the
balance sheet, profit and loss account and explanatory notes –
and the Group Management Report for the business year from
1 January to 31 December 2010. The preparation of the consolidated
financial statements and the Group Management Report
in accordance with German commercial law is the responsibility
of the Managing Partners of the company. Our responsibility is
to express an opinion on the consolidated financial statements
and the Group Management Report based on our audit. We conducted
our audit of the consolidated financial statements in accordance
with § 317 of the German HGB (German Commercial
Code) and the generally accepted standards for the audit of financial
statements promulgated by the Institut der Wirtschaftsprüfer
in Deutschland (IDW). Those standards require that we plan and
perform the audit such that misstatements materially affecting the
presentation of the net assets, financial position and results of
operations in the consolidated financial statements in accordance
with German principles of proper accounting and in the Group
Management Report are detected with reasonable assurance.
Knowledge of the business activities and the economic and legal
environment of the Group and expectations as to possible
misstatements are taken into account in the determination of
audit procedures. The effectiveness of the accounting-related
internal control system and the evidence supporting the disclosures
in the consolidated financial statements and the Group
Management Report are examined primarily on a test basis
within the framework of the audit. The audit includes assessing
the annual financial statements of the companies included in consolidation,
the determination of the companies to be included in
consolidation, the accounting and consolidation principles used
and significant estimates made by the Managing Partners as well
as evaluating the overall presentation of the consolidated financial
statements and the Group Management Report. We believe
that our audit provides a reasonable basis for our opinion. Our
audit has not led to any reservations. In our opinion, based on the
findings of our audit, the consolidated financial statements comply
with the legal requirements and give a true and fair view of
the net assets, financial position and results of operations of the
Group in accordance with German principles of proper accounting.
The Group Management Report is consistent with the consolidated
financial statements and as a whole provides a suitable
view of the Group’s position and appropriately presents the opportunities
and risks of future development.”
Essen, 15 April 2011
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Peter Albrecht Thomas Hofmann
Auditor Auditor

Vorwerk Group /
The Main Companies
Companies in the Vorwerk Group / 59

60 / Companies in the Vorwerk Group
The main Companies in the Vorwerk Group
Germany
Vorwerk & Co. KG
Mühlenweg 17 - 37
42270 Wuppertal
Vorwerk & Co. Interholding GmbH
Mühlenweg 17 - 37
42270 Wuppertal
Vorwerk & Co.
Beteiligungsgesellschaft mbH
Mühlenweg 17 - 37
42270 Wuppertal
Vorwerk Direct Selling
Ventures GmbH
Mühlenweg 17 - 37
42270 Wuppertal
Deutschland
Switzerland
Vorwerk International
Mittelsten Scheid & Co.
Verenastr. 39
8832 Wollerau
Belgium
Vorwerk & Co. KG
Bruxelles Bureau
47, Rue Montoyer
1000 Brüssel
Direct Sales, Vorwerk
Italy
Vorwerk Folletto s.a.s. di Vorwerk
Management s.r.l.
Via Ludovico di Breme, 33
20156 Milano
Vorwerk Contempora s.r.l.
Via Ludovico di Breme, 33
20156 Milano
Germany
Vorwerk Deutschland Stiftung & Co. KG
Geschäftsbereich Kobold
Mühlenweg 17 - 37
42270 Wuppertal
Vorwerk Deutschland Stiftung & Co. KG
Geschäftsbereich Thermomix
Mühlenweg 17 - 37
42270 Wuppertal
Spain
Vorwerk España M.S.L., S.C.
Avda. Arroyo del Santo, 7
28042 Madrid
France
Vorwerk France s.c.s.
5, rue Jacques Daguerre
44306 Nantes Cedex 3
China
Vorwerk Household
Appliances Co., Ltd.
9F, Vorwerk Plaza
1768 Yishan Road
201103, Shanghai
Portugal
Vorwerk Portugal Electrodomesticos
LDA
Rua Quinta do Paizinho
Edificio Bepor, Bloco 2 - 2° Esq.
2790-237 Carnaxide/Lisboa
Austria
Vorwerk Austria GmbH & Co. KG
Schäfferhofstr. 15
6971 Hard/Bregenz
Poland
Vorwerk Polska Sp.z o.o.
ul. Strzegomska 2 - 4
53-611 Wroclaw
Czech Republic
Vorwerk CS k.s.
Pod Pekařkou 1/107
147 00 Praha 4
Taiwan R.O.C.
Vorwerk Lux (Far East) Ltd.
Taiwan Branch (H.K.)
5F, No. 85, Section 1
Chuang Hsiao East Road
Taipei City
Japan
Vorwerk Nippon K.K.
Crescendo Bldg. 2F
2-3-4 Shin-Yokohama
Kohoku-ku, Yokohama-shi
Kanagawa-ken
222-033
Mexico
Vorwerk México S. de R.L. de C.V.
Av. Paseo de las Palmas No. 320, Local
PB-A
Col. Lomas de Chapultepec
Delegación Miguel Hidalgo C.P. 11000
México D.F.
Vorwerk Engineering
Germany
Vorwerk Elektrowerke GmbH & Co. KG
Mühlenweg 17 - 37
42270 Wuppertal
France
Vorwerk Semco S.A.S.
20, route de Montigny
28220 Cloyes-sur-le-Loir
Italy
Vorwerk Folletto Manufacturing s.r.l.
Via Garibaldi, 27
20043 Arcore-Milano
China
Vorwerk Household Appliance
Manufacturing (Shanghai)
Co., Ltd.
Songze Ave. 8777
Qinpu District
201700, Shanghai
Direct Sales, JAFRA Cosmetics
Headquarters & USA
JAFRA Cosmetics International, Inc.
2451 Townsgate Road
Westlake Village, CA 91361
Mexico
JAFRA Cosmetics International,
S.A. de C.V.
Blvd. Aldolfo López Mateos #515
Colonia Tlacopac
Delegación Alvaro Obregón
01040 México, D.F.
Germany
JAFRA Cosmetics GmbH & Co. KG
Leonrodstr. 52
80636 München
Brazil
Distribuidora JAFRA de Cosmeticos, Ltd.
Alameda dos Maracatins 659
Moema – São Paulo/SP
CEP 04089-011
Italy
JAFRA Cosmetics S.p.A.
Via Cesare Battisti 58
21043 Castiglione Olona
Switzerland
JAFRA Cosmetics AG
Riedstr. 3/5
6330 Cham

Austria
JAFRA Cosmetics
Handelsgesellschaft mbH
Schäfferhofstr. 15
6971 Hard/Bregenz
Netherlands
JAFRA Cosmetics International B.V.
Geograaf 30
6921 EW Duiven
Dominican Republic
JAFRA Cosmetics Dominicana S.A.
Gustavo Mejia Ricart No. 121
Ensanche Julieta
Santo Domingo
Russia
JAFRA Cosmetics International LLC
10 Pervyi Volokolamskiy proezd
123060 Moskva
India
JAFRA Ruchi Cosmetics (India)
Private Ltd.
Odeon Cinema
D-Block
Connaught Place
New Delhi
Mexico
JAFRA MANUFACTURING
Av. La Estacada #201
Parque Industrial Querétaro
Santa Rosa de Jauregui
Querétaro, Querétaro
CP 76220
Direct Sales, Lux Asia Pacific
Headquarters
Lux Asia Pacific Pte Ltd.
390 Havelock Road
#08-02 King’s Centre
Singapore 169662
Indonesia
P. T. Luxindo Raya
JL. Agug Timur 9
Blok 01/29-30
Sunter Agung Podomoro
14350 Jakarta
Thailand
Lux Royal (Thailand) Co., Ltd.
523-525 Lux Building
Sukhumvit 71, Phra Khanong-Nua
Wattana, Bangkok 10110
Taiwan R.O.C
Vorwerk Lux (Far East) Ltd.
Taiwan Branch (H.K.)
2F, No. 2 Ruiguang Road
Neihu District
114 Taipei City
Philippines
Lux Appliance Philippines Inc.
986 Standford Street
(corner EDSA)
Mandaluyong City 1550
Vietnam
LUX Company Ltd
70 Huynh Van Banh Street
Ward 15
Phu Nhuan District
Ho Chi Minh City
akf Financial Services
Germany
akf bank GmbH & Co KG
Friedrichstr. 51
42105 Wuppertal
akf leasing GmbH & Co KG
Friedrichstr. 51
42105 Wuppertal
akf servicelease GmbH
Johannisberg 7
42103 Wuppertal
Spain
akf bank GmbH & Co KG, S.E.
P.E. La Moraleja
Av. de Europa 12, 3a
28108 Alcobendas/Madrid
akf servicelease España S.L.
P.E. La Moraleja
Av. de Europa 12, 3a
28108 Alcobendas/Madrid
Poland
akf leasing polska S.A.
Al. Jana Pawla II 15
00-828 Warszawa
Italy
akf servicelease italia s.r.l.
Via Ludovico di Breme, 33
20156 Milano
Companies in the Vorwerk Group / 61
HECTAS Facility Services
Germany
HECTAS Gebäudedienste
Stiftung & Co. KG
Am Diek 52
42277 Wuppertal
HECTAS Gebäudereinigung
Stiftung & Co. KG
Am Diek 52
42277 Wuppertal
HECTAS Sicherheitsdienste GmbH
Am Diek 52
42277 Wuppertal
Netherlands
HECTAS Bedrijfsdiensten C.V.
Geograaf 30
6921 EW Duiven
Austria
HECTAS Gebäudedienste
Ges.mbH. & Co. KG
Sonnwendgasse 18
9020 Klagenfurt
Poland
HECTAS USŁUGI sp.z.o.o.
ul. Grabiszynska 241 B
53-234 Wrocław
Czech Republic
HECTAS Technické
a Bezpecnostní Sluzby, s.r.o.
Luzická 9
61600 Brno – Zabovresky
Belgium
HECTAS Schoonhouden BVBA
Kernenergiestraat 75
2610 Wilrijk
Luxembourg
HECTAS Gebäudedienste SaRL
38, Avenue Gordon Smith
7734 Colmar-Berg
Hungary
HECTAS Magyarország
Épületfenntartó Kft.
Hungária krt. 140 –144, Stock III
1146 Budapest
Vorwerk Carpets
Vorwerk & Co. Teppichwerke
GmbH & Co. KG
Kuhlmannstr. 11
31785 Hameln
Deutschland

62 / Imprint
Sources
Ute Kaiser, page 4f., 10, 19, 25f., 30f., 38f., 44;
Silja Götz, page 14f.;
Franz Pfluegl – Fotolia.com, Miles Davies,
Gianluca Fabrizio, Valerie Loiseleux, Joe Cicak, page 14f.;
Judith Müller, page 16, 19, 21, 23, 27, 29, 32, 34;
plainpicture, page 21;
Michael Jay, page 23;
Jon Helgason, page 27;
Michał Krakowiak, page 29;
Modrow, page 30f.;
Romy Blümel, page 35;
Patrizia Tilly – Fotolia.com
Imprint
Publication: Vorwerk & Co. KG,
Mühlenweg 17 - 37, 42270 Wuppertal
+49 202 564-1247
www.vorwerk.com
annual.report@vorwerk.de
Editorial staff: Michael Weber (responsibility),
Alexandra Stolpe,
Corporate Communications of the Vorwerk Group
Design: Orange Lab, Düsseldorf
Text: Vorwerk & Co. KG, Wuppertal,
Orange Lab, Düsseldorf
Translation: Alan Hall, Wuppertal,
Lynda Matschke, Hamburg
Production: Druckhaus Ley + Wiegandt, Wuppertal
© Vorwerk & Co. KG, 2011
Our annual report is published in German and
English with a total circulation of 9,500 copies.
Ident-No. 118295
Wood products originating from responsibly managed forests
are marked with the FSC trademark and are independently
certified in accordance with stringent Forest Stewardship
Council (FSC) criteria. Only FSC-approved paper was used in
the printing and preparation of this annual report. This annual
report was produced climate neutrally.

Management Report / Thermomix Editorial / /17
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Management Report / Thermomix Editorial / /17
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