Annual and Sustainability Report 2012 - Business and Biodiversity ...

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Annual and Sustainability Report 2012 - Business and Biodiversity ...

Annual and Sustainability

Report 2012

The Weleda Group and Weleda AG


Table of contents

At a glance

The 2012 financial year 3

Editorial letter from the Chairman of the Board of Directors 4

Report from the CEO 5

Organisation and responsibility

Structural adjustment and personnel changes 6

Group structure and shareholders 8

Corporate governance

New Audit Committee 9

Pharmaceuticals

Between continuity and change 10

Natural and organic cosmetics

The power of the Weleda brand 14

Reportage

Of bees and people 18

Reports from the regions

Activities and milestones in 2012 24

Sustainability

Strategy with adjusted areas of action 32

Goals and measures 34

Social sustainability: rich diversity 36

Environmental sustainability: greater transparency 40

Financial report

Market, operations, economic development 48

Annual Financial Report 2012

Weleda Group 55

Weleda AG 75

Domestic market output

Company information 86

Addresses

Weleda throughout the world 87

Certifications

Certifications of Weleda countries 88

Global Reporting Initiative

GRI indicators index 89

Publication details 90

Front page: Freshly cut marigolds (Calendula officinalis)

being shredded and mixed with pharmaceutical-grade

alcohol and distilled water to produce a calendula mother

tincture, a valuable plant extract. Weleda processes approximately

1,000 substances from nature to create

natural and organic cosmetics and pharmaceuticals, with

pharmaceutical expertise and experience determining

which manufacturing method is used in each case.


At a glance

The 2012 financial year

2012

in 1,000 EUR

2012

2011

in 1,000 CHF 1 in 1,000 EUR

2011

in 1,000 CHF 1 Change in %

2012/2011 based on

EUR values

Weleda Group – key figures

Net sales 322,482 388,690 307,458 379,391 +4.9

Operating result before depreciation and

amortisation (EBITDA)

25,263 30,450 14,763 18,244 +71.1

Operating result (EBIT) 10,603 12,780 1,339 1,679

EBIT in % of turnover 3.3 % 0.4 %

Consolidated result attributable to

shareholders of Weleda AG

797 961 –8,338 –10,299

Cash flow from operating activities 33,214 39,998 1,464 1,807

Investments in intangible assets and

property, plant and equipment

8,637 10,411 18,898 23,319 –54.3

Liquid funds on balance sheet date,

including securities

12,490 15,073 9,940 12,066 +25.7

Number of employees on balance

sheet date 2 1,911 2,039 –6.3

Balance sheet total 239,367 288,981 261,682 316,512 –8.5

Shareholders’ equity 76,620 92,577 76,358 92,770 +0.3

Equity ratio 32.0% 29.2%

Net debt 3 83,604 100,893 105,865 128,509 –21.0

Funds, debenture bonds and trustee loans 36,672 44,255 40,557 49,232 –9.6

Weleda AG – key figures

Profit/loss for the year 3,153 –1 1,188

Shareholders’ equity 90,257 87,077 +3.7

Dividend in % of nominal value 0.0% 4 0.0%

1 At balance sheet date, year-end or historical rates

2 In full-time equivalents (FTE)

3 New calculation: short- and long-term financial liabilities minus cash and securities.

The previous year has been adjusted accordingly

4

Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 7 th 2013

Value-added statement 2012

Origin 2012

in million

EUR

2011

in million

EUR

Change in %

2012/2011

Group performance (turnover, other income and interest income) 327.1 312.0 +4.8

Payment in advance (cost of materials, changes in inventory, depreciation and

amortisation and other advance payments)

–192.5 –189.0 +1.9

Added value 134.6 123.0 +9.4

Distribution 2012

in million

EUR

2011

in million

EUR

Change in %

2012/2011

To employees (employee income, as well as social contributions and pension fund) 125.1 92.9% 125 .1 101.7% +0.0

To public authorities (taxes) 4.0 3.0% 1.4 1.1% +185.7

To lenders (interest expense) 5.0 3.7% 4.9 4.0% +2.0

To shareholders (dividend) 0.0 0.0% 0.0 0.0% +0.0

To the company (reserves) 0.5 0.4% –8.4 –6.8% –

Added value 134.6 100.0% 123.0 100.0% +9.4

All information given at the prevailing rates at the time specified. Notes to the value-added statement: see page 54

3


Editorial letter from the Chairman of the Board of Directors

Dear Reader,

2012 was a year of crisis management for Weleda, one spent creating

a foundation for the strategic reorientation to come.

It was not an easy year. All the more encouraging, then, to see that the restructuring and reorganisation

process succeeded thanks to a concerted effort, following a loss of EUR 8 million the previous

year. A look back: the new Board of Directors, elected on March 23 rd 2012 appointed Ralph Heinisch

CEO of Weleda AG as of April 1 st . Under the new management, Weleda was given a new structure as

of June (see page 6 onwards for further details), and a series of restructuring and cost-cutting

measures was carried out with a view to resolving the company’s crisis situation. Some of the interventions

were painful, including – in addition to the postponement of investment – job cuts and the

resulting departure of individuals who had been dedicated to the company. In view of the necessary

changes over the last twelve months, a great deal of flexibility was called for from the workforce,

and it is remarkable how committed they were to making the process work. Following the implementation

of the various measures, a basis has been created for achieving the target laid out this time

last year on this page: improving the profitability of Weleda over the long term. This is the only way

to ensure that the company that was founded by Rudolf Steiner and Ita Wegman, and whose mission

is to ensure and maintain the health of the individual, can overcome its current challenges.

One of our basic tasks is to create and cultivate a range of pharmaceuticals that enable doctors

with various backgrounds to practice anthroposophic medicine. It is also important to consider very

carefully in which regions it might make sense over the long term to produce our pharmaceuticals

industrially or to have them manufactured pharmaceutically. In the process of defining our range we

are currently working closely with the international medical community and other proponents of

anthroposophic medicine. This dialogue, which was initiated in 2012 and has since been running intensively,

is characterised by openness and mutual understanding. The particular quality of the collaboration

is based not least on the realisation that the future of anthroposophic medicine as a whole

can only be secured through a common approach and joint acceptance of responsibility.

Our strategic reorientation will be based on the results of this exchange, together with our

obligation to face the constantly increasing challenges in the market. Examples of these challenges

include tackling the stricter approval conditions for pharmaceuticals and positioning the brand in the

competitive international natural and organic cosmetics market. Product innovations in both pharmaceuticals

and natural and organic cosmetics, as well as process improvements, play a vital role in

this regard.

For Weleda, 2012 was shaped significantly by economic necessities. However, sustainable

business development in accordance with our mission also includes taking a systematic approach to

pursuing not only our economic goals but our environmental and social ones too. Our sustainability

reporting can be found from page 32 onwards.

On behalf of the Board of Directors, I would like to thank the Executive Board for their

constructive and targeted collaboration. I would like to express my thanks to our employees for their

willingness not only to implement the necessary measures but also to contribute actively to the

restructuring process. This dedication is helping to create a dynamic corporate culture that is full of

hope for the future.

Paul Mackay, Chairman of the Board of Directors of Weleda AG

4


Report from the CEO

Dear Sir, dear Madam

Weleda has turned a corner: in 2012, the company achieved further growth in turnover

and produced a balanced result. Now that the foundations have been laid, it is time to turn

the potential into reality.

It’s been worth the effort. Despite one-off charges resulting from the restructuring process, the

Weleda Group closed the year with an operating result (EBIT) of EUR 10.6 million. In 2012, Weleda

Group turnover rose 5 per cent to EUR 322.5 million (2011: EUR 307.5 million), with the new

management team thus meeting its target for the year. The increase in pharmaceuticals amounted

to EUR 3 million (3 per cent), while natural and organic cosmetics were up EUR 12 million (6 per cent).

A significant proportion of this success can be attributed to the worldwide launch of new skin lotions

(see page 14 for further details).

The period of crisis management is behind us, and the trust of our banks and suppliers has

been restored. In addition to turnover growth, cost-cutting and the postponement of investments,

the process of stabilisation was also supported by an increase in productivity at all locations. The

commitment and discipline of our employees played an important role here.

In this Annual and Sustainability Report for our transformation year, we are delighted to

introduce you to colleagues from all over the world through both words and images. With their expertise,

and together with our unique standards in terms of raw materials and processing, they stand

for the superior quality of Weleda’s products. To find out what this means in concrete terms, go to

the beeswax report on pages 18 to 23.

Quality is the magical formula behind all Weleda innovations, as demonstrated for example

by the new skin lotions, which have already been the recipients of various awards, and the success

of the new hair care line launched in spring 2013. In the future we will dedicate more investment to

innovations in pharmaceuticals and natural and organic cosmetics. Other important projects aimed

at contributing to the healthy development of Weleda are already in full swing, and include optimising

purchasing and production processes and updating our IT architecture.

It is important to us to seek intensive dialogue with our partners in anthroposophic medicine,

working together to create a completely new foundation with which to overcome future challenges.

One of the tasks will be to define a pharmaceutical assortment that meets various needs and is at

the same time economically viable. Experienced specialists, for example, need a different range from

physicians who have only recently started practising anthroposophic medicine. Exploitation of the

great potential of anthroposophic pharmaceuticals is still in its infancy.

Yes, the immediate crisis has been resolved. In order to ensure the company’s complete

recovery over the longer term, however, there is a great deal more to be done. Even if we were unable

to reach all our sustainability targets due to the pressure to cut costs, it is encouraging for example

that we succeeded in increasing the organic proportion of our natural raw materials from 73 to 77 per

cent in 2012. Also in the social domain we would like to reinforce our pioneering role in the future. We

look forward to the tasks ahead.

Ralph Heinisch, CEO Weleda AG

5


Organisation and responsibility

Structural adjustment and personnel changes

The year 2012 was characterised by far-reaching personnel and organisational changes –

first and foremost at the executive management level. The new functional structure is geared

to the core processes pertaining to the market, to operations (including manufacturing)

and to finance and services. This structure is intended to lay the foundation for achieving our

primary goal of reinforcing the productivity and the sustainable development of Weleda.

New Board of Directors and new CEO

A new Board of Directors was elected at an Extraordinary General

Shareholders’ Meeting held in Dornach on March 23 rd 2012. Weleda’s

main shareholders – the General Anthroposophical Society and the

Ita Wegman Clinic – initiated the election process as a result of the

company’s financial situation after it suffered a loss of EUR 8.3 million

in 2011. Alongside its Chairman Paul Mackay, the new Board of

Directors consists of Dr Jürg Galliker, Deputy Chairman and Chairman

of the Audit Committee, Dr Andreas Jäschke, member of the

Audit Committee, Dr Harald Matthes and Elfi Seiler. Ralph Heinisch

was appointed Chief Executive Officer (CEO) of the company by the

Board of Directors on April 1 st 2012. Detailed information about the

persons mentioned can be found in the Annual and Sustainability

Report 2011 (pages 14 and 15) and at www.weleda.com.

The new Board of Directors of Weleda AG. From left to right: Jürg Galliker, Harald Matthes, Paul Mackay, Andreas Jäschke and Elfi Seiler.

6


Organisation and responsibility

Functional structure with new management

With effect from June 1 st 2012, the Weleda Group switched from a

matrix organisation to a function-based structure. The new Board

of Directors made this change with a view to increasing efficiency

in all areas of the company. The new, streamlined structure comprises

the three functional areas Commercial Unit, Operations Unit

and Financial and Services Unit, with the previously separate strategic

business units of Pharmaceuticals and Natural and Organic

Cosmetics being integrated into the new functional areas (see organisational

diagram). In organisational terms, therefore, this distinction

is no longer made. Transparency in terms of figures will

remain, however – please refer to pages 48 to 54 of the financial

report for details of the individual areas.

Since June 1 st 2012, the Executive Board has comprised

Ralph Heinisch as CEO (management of Group and stakeholder

management), Andreas Sommer as Chief Commercial Officer and

Dr Samir Kedwani as Chief Operations Officer. Andreas Sommer

joined Weleda in 1997, and was most recently a member of the

Weleda Executive Board with responsibility for the Natural and

Organic Cosmetics Business Unit. In his previous function, Dr Samir

Kedwani, who has been at Weleda since 1998, coordinated pharmaceutical

production in Switzerland, Germany and France. This

new, smaller team replaces the previous Weleda Executive Board.

Heinz Stübi, as CFO (Chief Financial Officer), successfully supported

the Executive Board in the restructuring of the company as CEO

on a temporary basis from February to September 2012. Ralph

Heinisch has additionally been performing the function of CFO

since October 1 st 2012 with overall responsibility for the Financial

and Services Unit.

Organisational diagram

Board of Directors

Paul Mackay (Chairman)

Dr Jürg Galliker (Deputy Chairman), Dr Andreas Jäschke,

Dr Harald Matthes, Elfi Seiler

Audit Commitee

Dr Jürg Galliker, Dr Andreas Jäschke,

Dr Patrick Scarpelli

Corporate Communications

Seta Thakur

Corporate Sustainability

Bas Schneiders, Seta Thakur

Weleda Executive Board

Ralph Heinisch (CEO)

Dr Samir Kedwani, Andreas Sommer

Risk Management/

Internal Auditing

Martin Blersch

Commercial Unit

Andreas Sommer (CCO)

Operations Unit

Dr Samir Kedwani (COO)

Financial and Services Unit

Ralph Heinisch (CFO)

International Marketing

Denis Grobotek

Innovation Management

Christian Witzig

Medical Affairs

Dr Martin Schnelle

D-A-CH Region

Ramon Stroink

Production Processes

Michael Goerigk

SCM/Operational Purchasing

Michael Goerigk

Natural and Organic Cosmetics

Production

Dr Thomas Karlen

WDRA/Pharmacovigilance/

Public Affairs

Dr Mónica Mennet-von Eiff

Quality/CAS

Dr Birgit Brander

Naturals GmbH/

Mineral Processing

Dr Samir Kedwani

Finance and Controlling

Michael Brenner

Human Resources

Heidi Stocker

Strategic Sourcing

Bas Schneiders

Information Management

Ralph Heinisch

Western Europe 1

Dr Peter Brändle

Pharmaceutical Production

Christian Birringer

Legal

Jochen Himpel

Northern, Central & Eastern Europe

Dr Nataliya Yarmolenko

Infrastructure

Karl-Heinz Türk

North America 1

Jasper van Brakel

South America, Italy, Spain

Ulrike Weber

CEO: Chief Executive Officer

CCO: Chief Commercial Officer

Asia/Pacific

Heiko Barth

COO: Chief Operations Officer

CFO: Chief Financial Officer

1

Weleda Benelux reports temporarily to Jasper van Brakel

SCM: Supply Chain Management

WDRA: Weleda Drug Regulatory Affairs

Reports to Board of Directors

(Audit Committee and Internal Auditing)

7


Organisation and responsibility

Group structure and shareholders

As a result of the reorganisation, Moritz Aebersold, Peter Braun and

Patrick Sirdey, members of the former Executive Board, left the company

in 2012. The Board of Directors would like to express its sincere

thanks to these individuals for their commitment and service to

Weleda, in some cases over the course of decades. Peter Braun temporarily

performed the role of CEO from January to March 2012.

The reorganisation resulted in extensive personnel

changes, and – by the end of 2012 – around 130 fewer individuals

were employed by the Weleda Group worldwide as at the end of

2011. Many of those who were obliged to leave the company were

highly dedicated employees, some of whom had formed a close

attachment to Weleda over several years of employment. Their

departure was a painful process both for the individuals themselves

and for those who remained.

The office location that opened in Basel in 2010 was closed

at the end of 2012, with the departments affected being relocated

to Arlesheim or Schwäbisch Gmünd. This step marked the successful

completion of the reintegration into production locations

announced in May.

Around 40 per cent of the capital and approximately 80 per

cent of the voting rights of Weleda AG are held by two main

shareholders, General Anthroposophical Society (AAG,

Dornach, Switzerland) and Ita Wegman Klinik AG (IWK,

Arlesheim, Switzerland). The remaining registered shares

and non-voting share certificates are publicly floated. Only

members of the AAG are entitled to entry in the share

register.

Capital structure of Weleda AG 1 Number Nominal capital

in CHF

Nominal registered shares CHF 1,000 3,478 3,478,000

Nominal registered shares CHF 112.50 6,880 774,000

Nominal registered shares CHF 125 3,984 498,000

Nominal non-voting shares CHF 500 19,000 9,500,000

Total nominal capital 14,250,000

1

The share capital is fully paid. As of December 31 st 2012 there is neither authorised

nor conditional share capital. Every registered share has a single vote in the

General Shareholders’ Meeting.

As of June 1 st 2012, the Weleda Group was given a streamlined functional structure with a management team comprising three members (left to right): Andreas

Sommer (Commercial Unit), Ralph Heinisch (Group management, stakeholder management and Financial and Services Unit) and Samir Kedwani (Operations Unit).

8


Corporate governance

New Audit Committee

The Audit Committee is a fundamental element of the management structure,

with responsibility for compliance with Weleda’s corporate governance.

Members

Two members of the Audit Committee, Dr Jürg Galliker (Chairman)

and Dr Andreas Jäschke, are also members of the Board of Directors.

These two individuals are supported by an external specialist,

Dr Patrick Scarpelli, Partner at cctm AG in Basel. All three have

long-standing expertise in the fields of finance, accounting and auditing.

connection with the switch from a divisional matrix organisation to

a function-based organisational structure. The issues of internal

control and risk mapping will therefore continue to play an important

role in corporate governance in 2013.

Tasks

The function of the Audit Committee is to provide effective support

to the Board of Directors in monitoring corporate governance. This

includes:

— monitoring the integrity of financial reporting and the Group’s

internal control system, particularly in the areas of finance and

accounting, as well as monitoring compliance with legal and internal

regulations

— monitoring the independence and the performance of the independent

external auditors (auditors and Group auditors) and the

internal auditing department

— assessing the appropriateness of risk management (see below

for further details)

— ensuring efficient communication between the independent external

auditors, the Executive Board and the internal auditing

department

The Audit Committee itself does not have any decision-making

powers, but can submit proposals to the Board of Directors. The

powers and duties assigned to the Board of Directors in accordance

with the organisational regulations and the law apply to the Board

of Directors as a whole.

Control and risk management

The essential content and elements of Weleda’s Group-wide risk

policy have been documented and described in a comprehensive

control and risk management system (KuRS). In addition to a central

risk management process for early and continuous identification and

evaluation of relevant fundamental corporate risks, this system also

comprises, at the process level for example, specifications for the

design and documentation of the internal control system. Following

the restructuring measures initiated and largely completed in 2012,

various necessary adjustments will need to be taken into account in

Employees from the central functions were relocated to the production

locations in 2012. Image: Weleda AG headquarters in Arlesheim.

9


Pharmaceuticals

Between continuity and change

For Weleda pharmaceuticals, 2012 was marked by far-reaching changes to the

company’s organisational structure and a persistently difficult market.

The decision to concentrate marketing activities on selected areas of competence

proved to be successful, with the growth achieved by Weleda pharmaceuticals

being above the market average in most countries.

Successful strategy based on areas of expertise

The tense economic situation in various parts of Europe led to

stagnation on the pharmaceuticals market in 2012, and high barriers

to market authorisation and state intervention in certain countries

added to these difficulties. However, rising cost pressure in

healthcare, and the continuing increase in the individual’s sense

of responsibility for their own health over a number of years, inspired

a slight increase in self-medication. Weleda created a foundation

for successful marketing activities in this segment back in

2010 through the introduction of a focussed strategy based on

areas of expertise (eyes, stress/sleep, skin, musculoskeletal, cardiovascular,

oncology). Growth rates above the market average

confirm that this was the right direction to take. The stress/sleep

area performed particularly well, with the leading products for

these indications – Neurodoron and Calmedoron (formerly Avena

sativa comp.) – achieving double-digit growth rates. The widespread

phenomena of stress and sleeplessness would appear to

coincide with an increase in demand for natural medication. This

also applies to complaints such as dry or watery eyes, as highlighted

by the well-above-average performance of eye products

in Germany and Switzerland in particular. As was the case in

previous years, only the area of oncology – with the product Iscador

– saw a decline, which was intensified by the decision in

Germany in July 2012 to stop reimbursing the cost of mistletoe

preparations in supplementary cancer therapy.

New marketing authorisations

Despite increasing regulatory requirements, last year Weleda was

granted a series of important marketing authorisations that will

improve the supply of anthroposophic pharmaceuticals for patients

Simona Oriani

Distribution, Italy

After working together with my Weleda

colleagues to overcome an eventful year,

I am more convinced than ever

of the values held by a company that has

been recognised for over 90 years as

serious, ethical, sustainable and

customer-oriented. I am certain that

Weleda has the strength – even more so

than before – to convince consumers of

the quality of its products.

10


Pharmaceuticals

and users in the countries concerned. This includes for example

Calmedoron in Austria and Switzerland and Neurodoron in Switzerland

(both stress/sleep), as well as Euphrasia eye drops in France,

Sweden and Russia. The renaming of Avena sativa comp. and

Ferrum phosphoricum comp. as Calmedoron and Infludoron respectively

was met with a largely positive response in Germany, and

was a further step in the international harmonisation of Weleda’s

product range.

Restructuring measures

The economic difficulties experienced by Weleda in 2012 are

primarily attributable to cost under-absorption by pharmaceuticals.

Restructuring measures were, and continue to be, vital in reestablishing

profitability throughout the company as a whole.

Marketing activities in Germany, Austria and Switzerland have been

placed under a single leadership, and the overall marketing and

distribution organisation has been streamlined. The medical sales

force has been merged with the pharmacy and retail sales force,

and its overall size reduced. While the resulting cost savings have

had an impact on the frequency of visits to anthroposophic doctors,

these are now being made more systematically.

In addition to the significant reduction in headcount at

management level, the bundle of measures aimed at cutting costs

and improving efficiency also included closer international collaboration

between the Weleda companies in the core countries

Germany, Switzerland and Austria. Also in other countries, Weleda’s

subsidiaries are either aiming to achieve cost coverage in the pharmaceuticals

segment or have already done so, as in Brazil. Despite

the savings made, Weleda has succeeded in maintaining its ability

to act and to create a sustainable structure.

In addition to the optimisation of costs, the implementation

of cost-covering prices is a further measure aimed at achieving

a return to profitability in pharmaceuticals. The aim is for the prices

of pharmaceuticals to at least cover the cost of raw materials and

manufacturing, and thereby reflect the particular quality of the

products. Since the end of 2012 Weleda has been holding intensive

discussions with the anthroposophic medical community and other

manufacturers of anthroposophic pharmaceuticals, with a view to

ensuring both need-based and economically viable pharmaceutical

manufacturing. With the same aim in mind, internal working groups

Successful marketing thanks to a strategy based

on areas of expertise: Weleda pharmaceuticals for

the areas of cold, eyes and stress.

11


Pharmaceuticals

Achieving cost-covering prices for Weleda pharmaceuticals

is an important step towards economic recovery.

Image: Sonja Höfferl from the Trituration department in

Schwäbisch Gmünd prepares raw materials.

are evaluating the existing manufacturing and distribution processes

in connection with Weleda’s pharmaceutical products in an

attempt to secure the sustainable supply of anthroposophic pharmaceuticals.

Modern pharmaceutical manufacturing in compliance with

GMP (Good Manufacturing Practice) regulations calls for continuous

investment. At its Schwäbisch Gmünd location, for example,

Weleda has commissioned a new packaging machine for ampoules

and bottles. The specially developed ampoule packaging system

has even won the German Packaging Award.

New structure for medical departments

As part of the reorganisation, the Medical Affairs division was

created with a view to concentrating the medical and pharmaceutical

expertise available within the Weleda Group and making it

more readily accessible. The Clinical Research department from the

former Pharmaceuticals Research & Development department has

been integrated into the new division. Two studies attracted

particular attention in 2012: one, a randomised clinical study of

pancreatic cancer patients in Serbia, was the first in the history of

anthroposophic medicine to provide scientific evidence of a

statistically significant increase in survival times as a result of mistletoe

therapy (Iscador Qu spezial). The second was an observational

study of 500 patients in Germany that was able to demonstrate

that treatment with Cardiodoron can reduce circulatory

regulation and sleep disorders.

Medical Affairs also comprises the Medical Science department

and the Competence Centre for Anthroposophic Medicine,

which are working in close collaboration with anthroposophic doctors

to define the foundations of a new pharmaceutical and assortment

strategy.

A wealth of minerals for our health

Minerals and metals are the basic elements of the earth, and

play an essential role in the manufacturing of Weleda’s

pharma ceuticals. With the aid of unique pharmaceutical processes

that are characteristic of Weleda, minerals and metals

from nature are transformed into pharmaceuticals whose

effect can unfold on the human body. The manufacturing

processes used preserve the essence of the substance while

helping to achieve the required effect in the individual. The

art lies in transforming substances that occur in nature in a

way that they can perform their effect on the body. Take gold

as an example: while the “King of metals” is extremely dense,

this density means it can be rolled extremely thinly. At

Weleda, the gold is heated to evaporation in a vacuum. The

metal fumes condense to form a golden mirror (Aurum

metallicum praeparatum) that can be used to provide the

precious metal with the quality it requires for further processing

into pharmaceutical products.

Various processing steps and gold preparations

12


Natural and organic cosmetics

The power of the Weleda brand

The natural and organic cosmetics market has many players. Weleda’s unique strengths

enable the company to hold its own in the competitive environment, as demonstrated

not least by successful product launches in 2012 and international awards. Weleda is

working intensively on reinforcing the strengths of the brand and making them real

for consumers.

Requirements of certified natural and organic cosmetics

Natural and organic cosmetics have long ceased to be a niche – they

now form an attractive and relevant market that is growing at an

above-average rate. Manufacturers of conventional cosmetics are

exploiting this development by launching near-natural cosmetics

in response to the growing consumer demand for natural care products.

In this competitive environment, Weleda has a strong position

as a pioneer in the area of high-quality natural and organic cosmetics.

The company has over 90 years of experience and a very high

level of brand awareness. Weleda can now benefit from the fact

that increasing numbers of new customers are turning from

near-natural cosmetics to certified natural and organic ones. At

the same time, however, it is becoming increasingly challenging for

Weleda to set itself apart from brands that are advancing into this

market segment with high investments in new products and marketing.

Weleda is therefore working intensively on achieving clear

brand positioning that goes beyond the by now ubiquitous terms

“natural”, “organic” and “sustainable”. The aim is to provide consumers

with a clear impression of what makes the Weleda brand special

and unique.

Regulatory requirements for natural and organic cosmetics

are becoming increasingly similar to those applied to pharmaceuticals,

and this represents a further challenge. While Weleda is able

to benefit from its experience with pharmaceuticals manufacturing,

increasingly complex dossiers regarding the toxicological and

allergic potential of natural substances need to be prepared and

submitted to the relevant authorities. In this context the European

Union is currently discussing restrictions on natural fragrances

which would have a significant effect on Weleda’s products.

Dr Brigitte Schulthess

Team Leader Fragrance Development, Switzerland

New products

At the beginning of 2012 Weleda launched a range of new skin

lotions that were accompanied by the company’s first-ever standardised

international advertising campaign. The new products met

all expectations, proving to be real growth drivers that were the

biggest contributors to the growth in turnover in natural and

organic cosmetics. Turnover performance in the individual regions

and countries was highly varied, with the strongest growth markets

being Germany and Austria, Russia, Brazil and Japan, as well as the

US. In Southern Europe, however, growth slowed due to the

crisis-hit economy. It has been observed that price awareness

among consumers has been increasing, as has the popularity of

Internet retailing.

Fragrances are essential components of our

products. A great deal of work was carried

out on Weleda’s fragrance landscape in 2012,

and for me the exchange between

members of a new interdisciplinary team was

particularly inspiring. I strongly believe

that these measures will enable us to master

future challenges in a more innovative way.

There is definitely no lack of fragrant ideas ...

14


Natural and organic cosmetics

The high regard in which Weleda is held by consumers and

retailers throughout the world is reflected in the many awards

received by Weleda’s natural and organic cosmetics in the year under

review. Examples include the Beauty Award 2012 from the Japanese

Vogue, the Top Brand 2012 Award in Germany and a Victoires de la

Beauté prize in France.

Restructuring, innovation and investment

Weleda was also obliged to cut costs and restructure in the areas

responsible for natural and organic cosmetics in 2012. All expenditure

with no direct influence on the market was carefully reviewed

and adjusted where possible, particularly in the administrative areas

of the company. The success of the measures became apparent

during the course of the year, and paved the way for increased momentum

on the market in 2013. The innovation projects that were

set aside in spring 2012 were taken up again with increased vigour

following a brief interruption, enabling most of the key performers

in R & D to be maintained in the company over this period. As a result,

it was possible at the beginning of 2013 to launch a new hair care

range of five products that not only meet the demands of modern

hair care but are also certified according to the strict criteria of the

natural and organic cosmetics label NATRUE. The selection of the

lead plants oat, millet and wheat used in the products is guided by

both medical and anthroposophic considerations. This holistic process

takes into account the relationship between the features of the

plant and the needs of the person, and is typical of Weleda’s characteristic

and unique approach (see box on page 17). Weleda’s baby

care products are also high on the list of priorities in product development,

and in 2013 they will be revised completely and relaunched

together with additional new products.

Innovative new products in proven quality:

Weleda hair care

Three new lead plants were added to the Weleda natural and

organic cosmetics range at the beginning of 2013: oat, millet

and wheat. Based on the anthroposophic understanding,

cereals are plants of warmth and light, have a close connection

with the earth and are known for their form-defining

silicic acid metabolism.

These properties are ideally suited to modern hair

care, with its gentle but thorough cleaning action and its

promotion of a healthy scalp. The new products are rounded

off in accordance with the Weleda product philosophy with

the finely composed fragrance of natural essential oils. All of

the new care products – three shampoos, one hair treatment

and one conditioner – are certified by NATRUE as authentic

natural and organic cosmetics. Weleda uses biodegradable

surfactants from natural sources in its shampoos.

15


Natural and organic cosmetics

As a pioneer with a unique approach, Weleda has a

strong position in the competitive natural and

organic cosmetics market. Image: At the end of a

carefully monitored manufacturing process,

Beate Dworczyk packs the Weleda plant-based

tooth gel for dispatch to specialists and retailers.

The lead plant concept:

the soul of Weleda’s natural and organic cosmetics

The strong increase in demand for Weleda’s natural and

organic cosmetics over the years led to the need for investment

in production facilities in Arlesheim. The installation of an additional

production boiler, primarily for products such as shampoos

and shower lotions containing detergent substances, will enable

larger quantities to be produced at lower costs and with shorter

processing times, as well as allowing Weleda to react more flexibly

to fluctuations in demand.

Product and brand communication

Intensive work was carried out on the positioning of the brand

in the year under review. This included a definition of the

strengths and qualities of the brand’s core, which are centred

around the concepts of holistic health and holistic beauty. Using

the results of this work as its starting point, the new lead agency

in Germany developed an international brand image that will be

implemented for the first time on the launch of the new hair care

range. The brand will in future be given a fresher appearance

that is typical of Weleda. A further milestone in communication

is the magazine Werde, which is available twice yearly for subscription

from May 2013 in Germany, Austria and Switzerland and

will report on issues related to a sustainable lifestyle.

The lead plant concept is of central importance for Weleda’s

natural and organic cosmetics. Behind this concept is a

holistic overall approach to facial and body care products,

based on the goal of health maintenance and the varying

needs of the individual (salutogenesis). Each of Weleda’s care

products is assigned a different lead plant, with both medical

and anthroposophic insights being used to guide the choice

of plant and its integration into the relevant product recipe.

In addition, Weleda’s natural and organic cosmetics are divided

into three “pillars”: biography-based care for specific stages

of life, such as in facial and baby care products, situative care

(for pregnancy and breastfeeding) and basic care.

The choice of lead plant is determined by the relationship

between the plant and the human being. Oat, as one of

the three lead plants of Weleda’s new hair care range, for example,

is known for its active silicic acid metabolism, a feature

which it has in common with human hair, the outer layer of

which also contains silicic acid. The silicic acid lends the oat

the structuring and coating properties with which it can help

to maintain healthy hair. Oat and hair are also similar in their

affinity to water: the green oat plant incorporates moisture

structures in its production of nutrients, thereby supporting

the water-loving (hygroscopic) construction of the hair.

17


Reportage

Of bees and people

African beeswax is an ingredient used in many of Weleda’s ointments and creams. The journey

from the honeycomb to the finished product is a long one. A glimpse behind the scenes

provides an impression of Weleda’s high quality standards at every stage of the process.

18


Reportage

Jörg Rogg, member of the pharmaceutical team in pharmaceuticals

manufacturing, removes the last of the ointment from the mixing

machine with a spatula.

African wild bees, such as the African honey bee, are more industrious

than the European honey bee and more resistant to disease.

weighing station. On his desk are four pages with instructions,

quantities, temperatures and times. The batch record, a kind of

recipe for 40 kilograms of cold ointment. A series of round metal

containers in a row: lanolin, yellow beeswax, hydrolysed beeswax,

olive oil, an essential oil mixture.

©Alan Skyrme/Alamy/AfriPics

Yellow beeswax has a long

tradition as a stabiliser in cosmetics

and pharmaceuticals.

A strong scent fills the room. The top note is eucalyptus. Jörg

Rogg fixes the display on the balance. He slowly pours the last

gram of the essential oil mixture drop by drop into a basin on the

balance from a beaker. The balance prints out the final weight.

In addition, Jörg confirms the quantity in grams in the batch record.

“We weigh every raw material by hand,” he explains. “Our

tolerance is a maximum of 1 per cent deviation from the set value

in the batch record. While the machine is running, Jörg’s colleague

checks all weights and production steps. After all, two heads are

better than one.

Arlesheim (Switzerland): there is a scent of beeswax. Strip lights

illuminate the room, the air conditioning hums, it’s dark outside. A

man – white coat, white clogs, hairnet – stands on a small stepladder

in front of an open industrial boiler. He pours a dark yellow liquid

from a stainless steel container into the boiler, steps down from

the ladder and taps on a screen. The lid of the boiler makes a creaking

sound as it closes, and the device whistles as water vapour

streams into the double-walled container.

Technology cannot replace the individual

“Steam is the only heat source we use.” Jörg Rogg, who trained as

a chef, has been working as a member of the pharmaceutical team

in pharmaceuticals manufacturing for six years, and specializes in

ointments. During the manufacturing process it is important to

comply exactly with all specifications in terms of weight, processes

and manufacturing steps. Despite the early hour, Jörg Rogg is wide

awake, and moves fluidly between mixing machine, screen and

The first step: documentation

There is one person without whom Jörg Rogg would not have been

able to manufacture a cold ointment this morning: Petra Kilchling.

The threads come together at the Pharma operations office. Petra

Kilchling monitors the documentation, a fundamental component

of quality assurance. She issues batch numbers, and puts together

a whole pile of forms for every product: batch record, packaging

record, filling process, sampling, accompanying document. These

forms pass through many hands, and come back later covered with

notes, ticks and initials. Ultimately, the documents will describe

the entire process involved in creating the cold ointment: traceability

guaranteed.

A special kind of excipient

Yellow beeswax – Cera flava – has a long tradition as a stabiliser

in cosmetics and pharmaceuticals. Even if there are other substances

available today to provide ointments with an internal

structure: beeswax can do more. “Wax is declared as an excipient,

and plays a vital role in the overall composition of the products,”

19


Reportage

Jörg Rogg looks into the mixing

machine through the round sight

glass. Despite the precise instructions

in the batch record, experience

plays an important role.

says Jan Ziolkowski, pharmacist and a member of International

Quality Management. “Around 1924, Rudolf Steiner said that

humans create a body for themselves, just like bees do with wax.

The association between queen and workers in the beehive is comparable

with nerve and blood cells in the human body.” As a stabiliser

in the ointment, wax is able to do the same as humans can

with skin formation. This connection means that the skin is particularly

good at absorbing the wax and the other active ingredients

in the ointment.

Nineteen tonnes of nappy change cream – every month

Production of natural and organic cosmetics, Schwäbisch Gmünd

(Germany): three mixing machines, connected via a network of

pipes and tubes. Andreas Lindenthal heaves a white plastic sack

from a palette: beeswax, 25 kilograms. One slit with a knife, and

he empties the golden yellow pellets into the mixing machine. Five

more sacks to follow, before Andreas confirms 150 kilograms of

beeswax in the record. Together with the same quantity of lanolin,

the pellets melt to form a golden yellow mass. Andreas controls

the three machines via a touch screen. Step by step, almond oil,

sesame oil, zinc oxide, aluminium oxide, calendula and camomile

extracts, purified water and essential oils flow into the containers

via suction tubes. The connected central control computer records

temperatures, revolutions, valve settings, etc.

Andreas Lindenthal manufactures 19 tonnes of nappy

change cream – in five batches of 3.8 tonnes each. He does so once

a month, as the baby cream is sold in over 40 countries. At the Saner

pharmacy in Arlesheim, for example. “I swear by nappy change

cream,” says Denise Grolimund, customer and mother. “It protects

my baby’s bottom from soreness, and the gentle fragrance is very

pleasant.”

Just as important as the correct processing are the raw

materials themselves. “The quality and characteristics of the raw

materials are fundamental,” calls Iris Widerski against the noise of

the three mixing machines. This lively, petite lady has been working

for Weleda for twelve years, and is in charge of bulk manufacturing

in Schwäbisch Gmünd. “With smoky beeswax, our nappy

change cream would also smell of smoke.” Purchasers Matthias

Kindermann and Jan Ziolkowski work together closely in order to

ensure that the wax for Weleda has only a slight scent of honey.

20


Reportage

As a stabiliser in the ointment, wax is

able to do the same as humans can with

skin formation.

The definition of quality

What requirements does beeswax actually have to meet Jan

Ziolkowski of International Quality Management talks to doctors

and colleagues in pharmaceutical research, at the Fragrance

Competence Centre, in supply chain management, in analysis and

in development. Or, in other words, with everyone who works

directly or indirectly with the wax or the finished products.

“The greatest challenge is

to cover the quantities required

in organic quality.”

He listens, collects wishes and expectations – and formulates

binding requirements on this basis. These include: appropriate beekeeping

practices, organically certified, fair trade, does not smell

of smoke, supply as pellets or flakes. Now, Matthias Kindermann

can look for suitable wax suppliers. “The greatest challenge is to

cover the quantities required in organic quality,” he says. In 2012

he purchased around 20 tonnes of wax. Delivery times are long,

and often difficult to plan. The wax is transported by sea from

Ethiopia. “Long-term contracts are doubly important: both out of

fairness to our business partners and with a view to ensuring a

regular supply,” says Matthias Kindermann.

Quality assurance

Warehouse, Schwäbisch Gmünd: A palette of white sacks is labelled

“Quarantine”. The content: yellow beeswax from Africa, which arrived

a few days ago. Barbara Spengler is head of the raw materials

laboratory, and her team take samples from the sacks. The test

instructions are ready in the laboratory. The wax is subject to eight

tests, with the lab technicians also on the lookout for pesticides.

Some of the samples go to Birgit Höschle, a microbiologist

who examines the wax for its overall bacterial count and for specific

disease-causing bacteria. Natural substances always contain

bacteria, she says, and this is completely normal. “If we find pathogenic

bacteria in the sample, however, we have to destroy the

entire batch,” says Birgit Höschle.

Filling precise quantities

Filling, Schwäbisch Gmünd: the metal tube moves up and down

100 times a minute, filling aluminium tubes – 35,000 a day – with

exactly 75 millilitres of nappy change cream. A metal stud folds the

tubes, and stamps batch numbers and expiry dates. The tubes drop

onto a green conveyor belt. A metal arm slides them into their cardboard

packaging, together with the package insert. Is the tube the

right way around in the holder Does the packaged tube have the

correct weight This is checked by sensors. If they identify an error,

the machine rejects the tube.

Monika Wohlfarth is responsible for natural and organic cosmetics

filling. 6,948 Calendula nappy change creams are being filled

and packaged for the Swiss market today. “We always produce the

precise quantity ordered. This way the customer always receives a

fresh product, and we do not fill our scarce storage space.”

GMP at Weleda

Good Manufacturing Practice (GMP) represents a set of pharmaceutical

guidelines intended to ensure product quality. All

suppliers are subject to a complex release process. Every

supplier has to be tested and released by quality management

before purchasers can order goods. In addition to documentation

of all procedures by means of questionnaires,

process descriptions and analyses, the process also includes

on-site testing. Weleda quality control tests all raw materials,

semi-finished products, packaging and finished products.

21


Reportage

The final step: documentation

Meanwhile, back in Arlesheim, the cold ointment has now also been

filled into aluminium tubes. On a shelving unit that is full to the

ceiling with products in small plastic baskets, is a basket of ointments

in their original packaging: A, M, E – samples from the beginning,

middle and end of the filling process. Anja Barthel and her

team test every finished product, natural and organic cosmetics

and pharmaceuticals, as well as all raw materials, semi-finished

products and packaging. This amounts to over 5,000 samples per

year. Three weeks later, all the results are available. The cold ointment

dossier is now 21 pages long, and lies on Klaus Rakus’ table.

Klaus Rakus is a tall man, who radiates a sense of calm. He is responsible

for quality control in Arlesheim.

Yellow beeswax

Weleda sources beeswax from Ethiopia: African wild bees

are more industrious than the European honey bee and

more resistant to disease. Weleda’s local partner works

together with over 500 honey producers, the majority of

whom are organised in cooperatives. The wax is organically

certified, and the honey from the same production is fairtrade

certified. Weleda offers its partners long-term

contracts, and ensures that the producers receive a fair

price for the wax.

Anja Barthel and her team test every

finished product, as well as all raw materials,

semi-finished products and packaging.

This amounts to over 5,000 samples per year.

As a direct representative of the specialist responsible, he examines

the entire dossier for completeness and correctness, and

releases the ointment for sale with his signature. The dossier

returns to its original location before being filed by Petra Kilchling

at the operations office. It will remain in the archive for ten

years in order to ensure traceability.

22


Reportage

Image left: Before the wax is

processed, lab technician Theresa

Kerssens tests the properties,

identity, composition and purity

of the substance.

Image right: The cold ointment is

filled into aluminium tubes. The

samples of filled ointment must be

subjected to quality control before

being made available for sale.

The anthroposophic ratio

Weleda’s recipes are created in accordance with a holistic approach

in which scientific and anthroposophic insights go

hand in hand.

In the cold ointment, which is available in Switzerland,

beeswax, lanolin and olive oil are used to create a warming

ointment base. The essential oils camphor, eucalyptus,

thyme, pine and rosemary have warming, relaxing and antiseptic

properties. They activate the metabolism as well as

the rhythmic system (breathing and circulation). Taken as a

whole, the composition targets the individual’s heat production

and metabolism, which are thrown out of balance in the

event of a cold.

Calendula absorbs a great deal of energy while growing,

and forms rounded leaves whose surface is coated with

essential oils with a balsamic fragrance. Between June and

September, while the plant is in bloom, it converts the sun’s

energy into creative power. Baby skin develops its full functionality

in the first three years of life. In the nappy change

cream, these form-defining, constructive properties of calendula

protect the delicate baby skin.

23


Reports from the regions

Activities and milestones in 2012

All regions contributed with growth rates to ensure encouraging overall business

performance in 2012. In view of the restructuring measures that affected all Weleda

companies, this was a hard-earned success.

Germany

+3.0 %

Netherlands

–6.9 %

France

+3.2 %

Sweden

+13.5 %

Czech Republic

+2.3 %

Argentina

+15.0 %

Spain

+8.9 %

Italy

–5.9 %

USA

+9.7 %

UK

+5.5 %

Austria

+19.1 %

New Zealand

+1.3 %

Chile

+16.4 %

Brazil

+14.2 %

Switzerland

+0.9 %

Percentages refer to the change in domestic

market output compared to the previous year

(in the relevant local currency).

Weleda is present in the following countries

Europe

Africa

Asia

America

Australia

Austria, Belgium, Bosnia, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,

Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxemburg, Netherlands, Norway,

Poland, Portugal, Rumania, Russia, Sweden, Slovakia, Slovenia, Spain, Switzerland, UK, Ukraine

Egypt, Morocco

Georgia, Hong Kong, India, Israel, Japan, Malaysia, South Korea, Taiwan, United Arab Emirates

Argentina, Brazil, Canada, Chile, Mexico, Peru, USA

Australia, New Zealand

24


Reports from the regions

The new Weleda body lotions were met with a positive response in all regions in 2012.

Above: Journalists try out the lotions in a blind test at the renowned Madrid opera restaurant La Favorita.

The reorganisation of the Weleda Group in 2012 had an impact on

the relationship between Weleda AG and its 18 majority shareholdings,

as well as on distribution partners in the export markets. Majority

shareholdings, partners and markets were reorganised into

six regions: D-A-CH (Germany, Austria and Switzerland), Western

Europe (France, Benelux and the UK), Northern, Central and

Eastern Europe (Sweden, Russia, the Czech Republic and export

markets), the North America region (USA and export markets), the

region South America (Argentina, Brazil, Chile and export markets)

Italy and Spain, and the Asia/Pacific region (Australia, New Zealand

and export markets).

Turnover increased in all regions, despite a decline in

consumer sentiment in several markets due to the economic crisis.

Sales performance in natural and organic cosmetics received a

significant boost from the successful launch of the new body

lotions, while in pharmaceuticals the main contributors to turnover

were price increases and a product-range focus. Despite the

restructuring and reorganisation measures, Weleda continued to

refine and implement its sustainability strategy in 2012. The strategy

was accompanied by environmental and social initiatives

across the Group.

25


Reports from the regions

D-A-CH REGION

Turnover in the D-A-CH region, which contributes more than half

of consolidated Group turnover, rose by 5 per cent in 2011, thereby

significantly exceeding expectations.

Following the amalgamation of the Natural and Organic

Cosmetics and Pharmaceuticals strategic business units at Group

level, the marketing activities of the two segments in the D-A-CH

region are now also managed jointly.

The year saw a series of far-reaching changes for Weleda’s

Austrian subsidiary, with service functions such as marketing, field

sales and customer services being relocated from Vienna to

Schwäbisch Gmünd and Arlesheim.

Sales of pharmaceuticals increased in all three countries –

including Germany – despite a significant reduction in marketing

expenditure. As in previous years, sales were driven by focus products

for self-medication. Price increases also had an effect. The

pharmaceutical product Iscador continued to perform poorly in

Germany due to the restrictions on reimbursement imposed by

statutory health insurers.

The launch of the new Weleda body lotions made a significant

contribution to the success of natural and organic cosmetics

in all three countries. In Germany and Austria, expanded distribution

channels also allowed for additional sales to be generated.

Weleda’s products were met with positive reactions in

2012: the new Weleda body lotions were nominated for the Glammy

2013 in Germany (which they subsequently won in March 2013), and

the launch of the facial care line received the Top Brand Award from

the German Lebensmittelzeitung publication. (Please refer to

pages 32 to 47 for details of sustainability issues in the countries

of the D-A-CH region.)

Pierre Kappler

Head of the Medicinal Plant Garden, Switzerland

My involvement with medicinal plant

cultivation, my relationship with living

organisms and the constant search

for ways to improve how we work

together have given me the strength to

concentrate on my tasks, also in turbulent

times. Working with plants is investing

in the future. I have to be one step ahead

with my planning at all times, and that

should be taken as an example for all our

work within the company.

26


Reports from the regions

Patrick Delbecq

Head of Field Sales, France

In times of change, we need to adapt

our working methods quickly.

I would like to make my contribution to

maintaining our leading position in

retail trade against the backdrop of

increasing competition. The successful

launch of the body lotions is further

evidence of the quality of our innovations.

Through my work in the sales force,

I can help to ensure that this success can

be sustained.

WESTERN EUROPE REGION

Sales in the Western Europe region, which account for a quarter of

the total sales of the Weleda Group, rose by more than 3 per cent,

a particularly encouraging development under the current market

conditions. In addition to dealing with a deterioration in the

consumer climate, the company also had to tackle restructuring

and cost savings. Following the reorganisation of the Weleda Group,

Weleda France was restructured into an associated company with

a new management team.

In France the large majority of pharmaceutical sales were

generated via prescription products. Weleda France invested in

providing doctors with advanced training, and succeeded in

increasing the number of prescriptions. In addition to this, revenues

were also boosted by price increases.

Pharmaceutical sales in the UK and Benelux increased

slightly overall, with new market authorisations and market

launches of products for self-medication and price increases

offsetting the decline in other segments.

Sales of natural and organic cosmetics in the region

increased with the launch of Weleda’s body lotions and the intensive

care products for men. Sales performance was positive

in France, while in the UK even double-digit growth was achieved.

Savings in marketing campaigns had a negative effect on sales

in the Netherlands, while encouraging growth was achieved

in Belgium.

The UK and France received several awards for the body

lotions, including the renowned Prix de la Beauté again and the

prestigious Cosmetic Executive Women CEW Award.

The well-regarded Palmarès Employeurs employer ranking

selected Weleda France as one of the five most attractive companies

in eastern France, based on the areas of career, employer,

diversity and management. Those surveyed found that Weleda’s

strengths lie in environmental management.

27


Reports from the regions

NORTHERN, CENTRAL AND EASTERN EUROPE

The Northern, Central and Eastern Europe region, which accounts

for just under 4 per cent of sales, grew by 15 per cent. Growth was

significantly boosted by the establishment of Weleda Russia, which

was profitable in its first year. Natural and organic cosmetics performed

well at Weleda Sweden, thanks to developments such as

the opening up of new distribution channels.

The region’s export markets (20 countries) presented a

mixed picture. While Israel and the Ukraine achieved significant

growth in natural and organic cosmetics, other markets such as

Greece were negative.

Sales of pharmaceuticals declined in Sweden and the Czech

Republic, while export markets remained stable overall. In Russia

sales increased threefold, having however started at a very low level.

Russia and Sweden each saw the new market authorisation

of a pharmaceutical product for self-medication.

The positive sales momentum in Sweden can be attributed

to the new Weleda body lotions. In addition, two national pharmacy

chains have also been acquired as distributors of Weleda products.

The success achieved on the Russian market is also based on the

expansion of the distribution network via pharmacies and specialist

baby shops. The target group of mothers-to-be was particularly

responsive: the Weleda Baby line advanced to first place in the Russian

natural and organic cosmetics market, while Weleda Sweden

made progress in the area of sustainability. Waste generation was

reduced by 50 per cent via the use of a comprehensive recycling

system. The Food for Thought project, which promotes the

integration of female immigrants into the employment market, was

supported by the Weleda Sustainability Loan that was launched

in 2011.

Dany César

Member of Executive Management, Brazil

In addition to legal issues, I am also

responsible at Weleda Brazil for the areas

of controlling, finance, supply chain,

HR and IT. The Weleda brand stands for

quality and credibility, and this imbues

me with a sense of obligation to perform my

work to a high standard. This calls for

more than a professional attitude – it

takes a strong personal commitment,

and this is deeply connected to our values

and our mission.

28


Reports from the regions

NORTH AMERICA REGION

The North America region saw its sales rise by 9 per cent, bringing

the region’s contribution to overall sales to above 4 per cent. The

increase was attributable primarily to the natural and organic

cosmetics segment, which grew by over 10 per cent thanks to

investment over the last three years in the markets of the North

America region. Pharmaceuticals accounted for only just above

10 per cent of total sales in this region, with sales remaining stable.

PR and digital marketing activities were one particular area

of focus in 2012, with online sales of Weleda natural and organic

cosmetics growing particularly strongly. Natural food stores

continued to represent the main distribution channels in the USA

and Canada.

The facial care line launched in 2011 achieved significant

growth in 2012. Similar success is anticipated for 2013 with the

body lotions launched in the fourth quarter of 2012.

Again in 2012 Weleda North America implemented various

measures in the area of sustainability. At the political level it

supported the California “Right to Know” movement, which is

calling for the compulsory declaration of genetically modified

organisms in food.

“A mother’s love”: Under this motto, Weleda North America

held a photo and video competition in various social media

channels in May. Mothers were given the opportunity to

record personal moments with themselves and their children,

and to submit this moment as a photo or video. The prizes on

offer included a year’s supply of Weleda baby products.

29


Reports from the regions

SOUTH AMERICA, ITALY AND SPAIN REGION

Sales and profitability developed positively throughout the region

in 2012, despite the first decline for many years in the situation in

Italy, the strongest country in terms of sales. Southern Europe

represents 6 per cent of Weleda sales, South America 3 per cent.

The region’s biggest driver of the positive growth performance is

Brazil, where the extensive restructuring process initiated in 2011

continued successfully in 2012, and sales grew at a double-digit rate.

Pharmaceuticals accounted for an above-average proportion

of sales in all countries of the region, with the exception of

Spain. Increased provision of training for doctors in the form of

seminars was a focal point in 2012. Medical congresses continued

to be supported, and the marketing of pharmaceuticals for

self-medication was professionalised. Sales of pharmaceuticals

increased significantly in South America in 2012, while Italy saw a

slight decline.

Due in particular to the economic crisis in Italy and Spain,

competition in natural and organic cosmetics became increasingly

intense in 2012. Weleda found itself confronted with significant

discount campaigns for retail and consumers, and sales arguments

in the market environment intensified. Against this backdrop, considerable

savings in marketing, such as those that had become

necessary in Italy, gave rise to new challenges. Despite the tense

economic situation, Weleda achieved double-digit growth in sales

of natural and organic cosmetics in Spain, driven by a targeted

expansion of distribution through pharmacies.

Weleda natural and organic cosmetics were also successful

in South American markets. In Brazil in particular, a mix of integrated

campaigns and social media activities had a positive impact

on sales.

In Brazil, several employees from various departments

formed a voluntary group called WeledaEco with the aim of promoting

sustainable practices within the company through voluntary

training and joint campaigns.

The Premio Natura, the most prestigious

Italian prize for environmentally

conscious products, was won

by the Weleda Calendula baby care

line in 2012.

In Argentina, for every skin food

cream purchased, one square metre

of jungle is protected via the

Banco de Bosque foundation.

30


Reports from the regions

ASIA/PACIFIC REGION

While the countries belonging to this dynamic region currently

account for 2 per cent of total sales by the Weleda Group, the rate

of sales growth is above average, at more than 13 per cent.

Japan is the country in the region with highest sales and,

together with the South Korean market, is driving growth with an

increase of 18 per cent.

Weleda New Zealand succeeded in structuring its

pharmaceutical prices and ranges profitably in 2012. Pharmaceutical

prices and ranges were adjusted, and the production of

small quantities was relocated to pharmacies. Sales increased

by 2 per cent.

Despite a competitive market environment, Weleda achieved

third place among biocosmetics providers in Japan in 2012.

The Weleda Birch Cellulite Oil received a gold medal in the

Japan Beauty Award from Vogue magazine, and the Mother and

Baby line was awarded major prizes in Japan. In Australia Weleda

won the Green Lifestyle Award 2012 for its fair and lasting partnerships

with suppliers and its ethical procurement.

Hiroko Aoki

PR Manager, Japan

With the aim of improving the brand

awareness of Weleda in the Japanese

market, I inform journalists and

multipliers of the values of the brand.

And I create possibilities for end

consumers to try out our products.

Birch Cellulite Oil, for example,

is highly valued in Japan and has received

awards from several magazines.

I dream of the day when all families in

Japan use Weleda.

31


Sustainability

Strategy with adjusted areas of action

Numerous factors combine to produce the unique Weleda quality. A responsible and

sustainable approach to both employees and nature play a large part in this.

Comprehensive data were recorded for all Weleda AG majority shareholdings for the

first time in 2012, making sustainability at Weleda even more transparent.

Revised strategy

The first version of Weleda’s sustainability strategy was drawn up

in 2010. Many of the projects from this have been implemented.

The strategy has developed continually since then. At the initiative

of the CEO and the Chairman of the Board of Directors, a core team

comprising those people responsible for implementing sustainability

goals in the company examined the strategy in terms of feasibility

and relevance and refocused it at the end of 2012.

The strategy focuses on seven issues which are particularly

important to Weleda. In contrast to the previous version, the focus

“Space for working and living” has been renamed “Commitment to

employees”, in order to raise the profile of employee well-being. Communication

of sustainability issues as a cross-department function

has been integrated in all corporate issues. “Corporate responsibility”

is now explicitly anchored as a focus in the sustainability flower

in order to ensure that in future, environmental, social and economic

targets will be even better linked with one another. “Biodiversity

and “Commitment to employee well-being” will be the main focuses

in 2013. New goals have therefore been formulated and given high

priority for the company (Goals and measures, pages 34 and 35).

Interdisciplinary Sustainability Committee

Since 2012, two people have held responsibility for promoting

awareness of sustainability within the company. They report

directly to the CEO. A Sustainability Committee, chaired by the CEO,

was also founded in 2012. In addition to the Executive Board and

the Chairman of the Board of Directors, members include executive

management and the business area heads. This Committee sets

the course for future goals and introduces corresponding measures.

The improved interdisciplinary collaboration means that the guiding

principle of sustainability will shape Weleda’s corporate strategy

even more than previously.

Economical

use of water

Climate neutrality

Biodiversity

and sourcing of

raw materials

Sustainable

packaging

Corporate

Sustainability

Strategy

Fair trade

Commitment to

employees

Corporate

responsibility

The sustainability strategy comprises seven central areas of action.

Lavender project in Mencini, Moldova: A farmer in this

emerging country is cultivating top-quality organic

lavender in fertile, black soil. Its deep blue flowers contain

essential oils which Weleda uses as a perfume in around

50 products. The successful partnership allows a small

company to flourish and supplies the scent for Weleda

products. At harvest time, the lavender is carefully picked

by hand. Read more about this project on page 39.

32


Sustainability

Goals and measures

At the heart of Weleda’s sustainability strategy are goals that concern the company’s

core business. The overview below shows the achievements made and the new

objectives. The goals and measures listed implement the sustainability strategy as

adjusted in 2012.

ECONOMIC RESPONSIBILITY

Goals set Achievement 2012 Goals 2013

New goal

Compilation of figures on economic performance

New goal

Further development of risk management

New goal

Improvement in the earnings situation for

pharmaceuticals

Figures formulated for internal and external

reporting. Restructuring of the value-added

statement

Measurement and further development of figures

Revision of Group-wide risk management, with a

focus on further minimising corporate risks and

utilising opportunities

Revision of the pharmaceuticals strategy to ensure

long-term availability of anthroposophic pharmaceuticals

Goal met

Goal partially met

Goal not met

Goal achievement not yet known

SOCIAL RESPONSIBILITY

Goals set Achievements 2012 Goals 2013

Validation of all suppliers according to the Weleda

Fair Trade Standard (UEBT) by 2014

Additional annual certification of selected

suppliers as per the official fair trade standard

Annual support for two social projects as part of

Weleda cultivation projects

Definition of area-specific sustainability issues

as a basis for the personal involvement of employees

in 2012

Annual offer of sustainability training

Support/reward for voluntary activities by

employ ees

New goal

Establishment of health management offering

at all locations

Required data from 60 per cent of suppliers

have been gathered and assessed

No suppliers have been awarded additional

certification

Support was given to the expansion of a

medical centre in Moldova and the construction

of a kindergarten in Turkey

Partial creation of an international environment

handbook with an area-specific focus

Training sessions held for sales force and

information passed on at employee meetings

and inductions

Individual commitments by employees for

charitable activities were supported

New raw materials suppliers must meet the

Weleda Fair Trade Standard (UEBT); the risk

assessment for existing suppliers will be

continued consistently

This goal will not be continued; Weleda is a member

of UEBT and is working on the issue internally

The goal will be continued

Completion of the international environment

handbook

Training sessions and information events on

sustainability will be continued

This goal will not be continued; not a focus of the

sustainability and personnel strategy

Harmonising the offerings in Germany, France

and Switzerland; a foundation concept is being

developed for the Weleda Group

34


Sustainability

Myriam Héron

International Quality Management, Germany

Quality is the starting point and goal for all Weleda

products. It’s important to reaffirm the company’s

values in a period of change in particular. I think it’s a

good sign that we have become a member of the

Union for Ethical Biotrade in this period. I’m

committed to ensuring that Weleda shines as a

pioneer for ethical and environmental values.

Goals set Achievement 2012 Goals 2013

New goal

Offering support programmes for employees in

all life situations

Ensuring equal career and earnings opportunities

for men and women by 2014

New goal

Anchoring of sustainability goals in objective

agreements for managers

Preparatory work was carried out in 2012 for

the introduction of the remuneration system

Adaptation of the “WE CARE – accommodating work

and family care” programme for Swiss employees

Introduction of a remuneration system which

promotes transparency and equality of

opportunities

Include sustainability goals as part of the annual

objective agreements of managers

ENVIRONMENTAL RESPONSIBILITY

Goals set Achievements 2012 Goals 2013

Evaluation of all raw materials suppliers in line

with Weleda environmental standards by 2014

Increase in the organic proportion of plant-based

raw materials to a minimum of 80 per cent by 2015

Reduction in energy intensity of 5 per cent

each year

Reduction in water intensity of 5 per cent

each year

Implementation of a water footprint model with

suppliers for 2012

Launch of projects with suppliers in water-poor

countries by 2013

Investigation of environmentally friendly,

recyclable packaging for natural and organic

cosmetics in 2012

Reduction in waste intensity of 5 per cent

each year

New goal

Introduction of mobility management

Contract manufacturers must be certified to

IS0 14001 as of 2012. Internal purchasing

criteria have been set up for Weleda

Increase in the organic proportion by 4 to 77

per cent

Energy intensity was reduced by 5 per cent

Water intensity was reduced by 2.7 per cent

The goal was not achieved

No projects were launched in 2012

The investigations are complete

Waste intensity was reduced by 6.7 per cent

Specific sustainability criteria are being drawn up

for all supplier groups, building on the purchasing

criteria in the purchasing handbook

The goal will be continued

The goal will be continued with an annual objective

of 3 per cent (adjustment necessary as saving

potential is lower due to completed measures)

The goal will be continued

The goal will not be continued in 2013 due to the

reorientation of the sustainability strategy for 2013

(page 32)

The goal will not be continued in 2013 due to the

reorientation of the sustainability strategy for 2013

(page 32)

A sustainable packaging strategy will be drawn up

in 2013; this will be used as a basis to develop

specific goals and measures

The goal will be continued

An overall concept for international mobility

management (travel, commuting) will be drawn up

35


Sustainability

Social sustainability: rich diversity

It was and is only natural for Weleda to assume social responsibility as a corporate

citizen. This affects all partners and groups with whom the company has a relationship.

Employees

Sustainable business forms the basis for secure jobs and long-term

employment. Using resources economically and in a responsible

way is therefore an important aim at management level at Weleda.

This is achieved when people are able to collaborate well and professionally,

and when managers fulfil their functions in a socially

and professionally competent manner. Weleda enables its employees

to achieve this through long-term personal development, i.e. a

comprehensive training and development programme. Offerings

with regard to work-life balance also form part of this concept.

basis for sourcing the required raw materials in the desired quality.

Weleda implements a collaboration that extends beyond the cultivation

project alone. This applies in regions that are disadvantaged

in their economic development in particular. The Weleda cultivation

projects offer the local population a reliable source of

income and can contribute to reducing rural depopulation.

Consumers

Weleda’s social responsibility is ultimately expressed in products

that support its consumers in internal and external healing.

Neighbourhood

A company thrives best in healthy social conditions. The Weleda

business operations and production facilities feel a sense of responsibility

for the locations in which they are active. Weleda maintains

a trusting relationship with the respective local authorities

and initiatives.

Suppliers

Fair collaboration and cooperation with farmers, cooperatives and

collectors is of considerable importance. Weleda sees this as part

of its social responsibility. These professional groups provide the

Commitment to employees

The focus of employee development in the year under review

was on change management. This is a considerable challenge –

particularly for a company such as Weleda. Employee development

means investing in professional and social competence.

Weleda therefore continues to be actively engaged in this area.

The company offers a range of programmes and measures to support

and promote employees in their living and working situations.

This applies worldwide.

Weleda Germany is the largest subsidiary with the most

programmes, but Weleda is also perceived as an attractive em-

“Accommodating work and family care”

The population in the industrialised nations is ageing, and increasing numbers of people are responsible

for caring for a family member. One example is Gisela Merz, who has been working in Quality

Assurance at Weleda in Schwäbisch Gmünd, Germany, for more than twelve years. As a project

manager, she is responsible for the Weleda Quality Assurance document management system and

coordinates change management. In addition to working at Weleda, Gisela Merz also cares for her

87-year-old father. She can count on support from Weleda in this regard.

The “WE CARE – accommodating work and family care” programme was launched in 2010. It

offers employees support in carrying out their care responsibilities. Information events are organised

and, if needed, individual working time solutions are sought in agreement with managers. Gisela

Merz meets her colleagues regularly to exchange experiences. She is also involved in the WE CARE

working group and acts as a contact. She believes the offerings are a great help in balancing care

and support with working at the company: “It’s an example that should set a precedent.”

36


Sustainability

Employees

as of 31.12.2012

D-A-CH

Western

Europe

Northern,

Central and

Eastern

Europe

North

America

South

America,

Italy, Spain

Asia/

Pacific

Total number of employees 1,305 532 52 37 257 53

Number of male employees 436 142 12 9 84 25

Number of female employees 869 390 40 28 173 28

* Employment cannot be

disclosed by age group for

legal reasons.

Nature of employment

Full-time employees 906 353 38 30 225 28

Part-time employees 399 179 14 7 32 25

of which trainees, apprentices, marginally

employed staff, volunteers

Employees by age group

73 6 0 2 7 2

up to 30 years of age 245 85 9 * 62 *

31 to 50 years of age 780 336 35 * 163 *

51 to 60 years of age 240 99 5 * 25 *

over 60 years of age 40 12 3 * 7 *

Explanation of the regions:

D-A-CH: Germany, Austria,

Switzerland

Western Europe: France, UK,

Benelux (Netherlands, Belgium)

Northern, Central and Eastern

Europe: Sweden, Russia, Czech

Republic (and Slovakia)

North America: USA

South America, Italy, Spain:

Argentina, Chile, Brazil, Italy, Spain

Asia/Pacific: Australia,

New Zealand

ployer in other countries. In French employer rankings, Weleda

was voted the fifth most attractive company in eastern France

in 2012. Respondents said that the company’s strength lay in its

environmental commitment. One of Weleda’s main concerns is

enabling a work-life balance. Offerings will be improved over the

next few years and extended to other countries. Weleda Germany

has already received several awards for its comprehensive

offering. The German “Audit Career and Family” certificate was

successfully re-audited in 2012. In countries such as the United

States with little legal provision, Weleda is seen as a family-friendly

company which facilitates women’s return to work

(see portrait below).

Occupational safety is also an area covered by sustainability.

Weleda aims to offer its employees safe working conditions.

Day-to-day prevention of accidents and occupational diseases

is a high priority. The Swiss, French and German locations are

working closely together to this end.

“Weleda is the right company”

Carrie Ruehlman has been a communications manager at Weleda North America since 2009. She is

responsible for public relations and edits the Weleda North America customer magazine. Carrie

originally got to know Weleda as a customer. After spending time abroad and returning to the United

States, she had the opportunity to join the company. Carrie works in her dream job, not only because

Weleda’s values match her own to a high degree, but also because Weleda supports her in her current

life situation.

Carrie Ruehlman had her first child in 2012. She enjoyed a relatively long period of maternity

leave in the US of four months. She also has the option of working from home two days per week.

Weleda made it easier for her to return to work during the transitional phase after maternity leave

with flexible working hours. She can also take advantage of this flexibility if her daughter is ill. These

are just a few of the reasons that Carrie Ruehlman believes, “Weleda is the right company for me.”

37


Sustainability

PERSONAL DEVELOPMENT AND CORPORATE

CULTURE AND IDENTITY AT WELEDA

An interview with Heidi Stocker,

Head of Human Resources, Weleda Group

What does personal development mean at Weleda, and what

is offered

Weleda sees itself as a place of human development based on common

tasks. Personal development helps employees to better handle

current and future challenges. The individual should be able to

act for the purpose of the whole and at the same time feel supported

by the whole.

We offer three components: operational training, the

Weleda Academy with continuing and advanced training offers, and

a trainer advisor pool. The Weleda values should have a lasting effect

in day-to-day operations. We have therefore reorganised our

Corporate Culture and Identity department. A focus on common

values is particularly important in turbulent times.

Has the restructuring affected employee development and

employee care Are there any fundamental changes

The restructuring led to initial uncertainty, but set a lot in motion

and ultimately had a positive effect. In Human Resources, too, we

scrutinised everything in order to maintain what is tried and tested,

and to develop further where requirements and issues have

changed. For example, we have largely maintained the “Management

skills” and “Performance reviews as a management tool” training

offerings – but are also developing new tools such as a mandatory

“Weleda management licence” and “Supervision groups

management skills”. The “Weleda identity and basic values curriculum”

and the “Anthroposophy in dialogue” programme series are

being relaunched, under the responsibility of the Corporate Culture

and Identity department.

What does sustainability in human resources mean to you

I understand it to mean the development and maintenance of a

collaboration, characterised by careful interaction with ourselves

and with others – resulting in a positive effect right through to our

customers. In this way, the values of responsibility, trust and acting

as a role model should increasingly serve as a common focus.

For me, sustainability in human resources also means promoting

a culture of commitment – and also demanding this in management

and collaboration. Each individual is responsible for

Weleda remaining a leading employer and an attractive company

in the future.

38


Sustainability

FAIR TRADE AND DEALING WITH SUPPLIERS

Weleda began to implement an external fair trade standard in 2011.

This was continued in 2012. In this way, Weleda is confirming its

commitment to and the seriousness of dealing fairly with its suppliers.

The standard was developed by the international Union for

Ethical Biotrade (UEBT). Alongside biodiversity, fair partnerships

and equitable distribution of genetic resources (access and benefit

sharing) are cornerstones of the UEBT standard.

Weleda works closely with UEBT; the organisation provides

active support through its expertise. For example, a training workshop

was offered in 2012 to all employees involved in this area at

the Arlesheim (Switzerland), Huningue (France) and Schwäbisch

Gmünd (Germany) sites, in which UEBT participated. With effect

from 2013, the UEBT standard is also a criterion in supplier approval.

Partnership for the benefit of all:

Lavender cultivation in Moldova

Weleda has been collaborating with its partner company Resanco

in Moldova since 2005. Here, organic lavender is cultivated

and distilled. The essential oil obtained is known for

its relaxing effect and is used as a perfume in around

50 Weleda products. Thanks to a EUR 20,000 donation from

Weleda, it was possible to open a social and medical centre

and a football pitch in 2012 – which contribute to the development

of the region as a whole.

The founders of Resanco have successfully revived

the tradition of lavender cultivation in the region. Two hundred

farming families are now involved in the project. The

farmers are now able to generate a fixed portion of their income

through lavender cultivation.

No medical care was previously available in the village,

and travel to the next-largest town is long and difficult. Older

people in particular therefore had little access to basic medical

care. With the financial assistance of Weleda, two treatment

rooms have been opened. A doctor and a nurse now

visit the small village once or twice a week.

Weleda has been a full member of

UEBT since October 2011.

Lavender project in Mencini, Moldova:

opening of the social and medical centre.

39


Sustainability

Environmental sustainability: greater transparency

Environmental responsibility is one of Weleda’s core values. The binding

standards for evaluation of raw material suppliers introduced in 2012 are having

a positive impact on protecting biodiversity. Consumption intensity has

been further reduced in the areas of energy, water, packaging and waste.

Protecting biodiversity

Environmental responsibility is a tradition at Weleda. Rudolf Steiner,

founder of anthroposophy and of Weleda, communicated his ideas

on reforming medicine and on biodynamic agriculture at the same

time. Biodynamic cultivation methods are special because they improve

both soil fertility and biodiversity. Weleda products are made

largely from natural and, where this is not possible, near-natural

(i.e. natural substances that have been chemically modified), raw

materials which are purchased worldwide. An important aim of the

sustainability strategy is maintaining biodiversity and using

sources of raw materials in a sustainable way.

Tools of biodiversity management

Weleda uses a range of tools in implementing its environmental

strategy. These include the internally developed biodiversity

guidelines, which are implemented Group-wide, as well as external

tools such as EMAS-verified environment management (Environmental

Management and Audit Scheme) and the UEBT (Union

for Ethical Biotrade) standard, which has been embedded at

Group-level since October 2011. The action plans have a positive

impact on biodiversity within the company and throughout the

supply chain.

The changeover from conventional cultivation to organic

agriculture is an important tool in encouraging biodiversity directly.

In 2012, 84 per cent of areas used for raw material cultivation were

farmed organically or biodynamically.

In light of the growing population and the shortage of resources,

economical and careful use of resources is one of Weleda’s

central objectives. In the first strategy process in 2010, climate

neutrality, water and sustainable packaging were defined as focus

issues at Group level following a stakeholder survey. Weleda continues

to pursue these focus issues and the associated measures

taken. As part of the refocusing and revision in the year under review,

biodiversity was defined as a key issue in 2013 (page 32).

2011 2012

Raw materials in tonnes

Conventional

Organic,

biodynamic

Organic

component

in %

Conventional

Organic,

biodynamic

Organic

component

in %

Plant-based raw materials 1 592.1 1,632.6 73 454.2 1,523.1 77

Animal-based raw materials 2 135.9 32.1 19 128.0 6.3 5

Minerals 3 42.9 28.8

Near-natural raw materials 4 580.0 1,025.1

Inorganic raw materials and metals 5 184.1 172.5

Fossil-based organic raw materials 6 4.4 2.9

Biotechnologically produced raw materials 7 0 18.3

1

With plant-based bulking materials, starches, emulsifiers, etc.

5

Siliceous bulking materials, chalk, metals for production of pharmaceuticals, etc.

2

Honey, lactose (for solid pharmaceutical forms), beeswax, lanolin, etc.

6

Petroleum jelly and paraffins for specific medicinal ointments

3

Clay, talc, salt, etc.

7

New group: natural thickening agent

4

Surfactants, glycerol, etc.

40


Sustainability

Biodiversity at the Weleda

premises: renatured company car

park in Arlesheim, Switzerland

(below). The medicinal plant garden

in Wetzgau, Germany.

SUSTAINABLE PROCUREMENT AND BIODIVERSITY

The portfolio of raw materials used by Weleda is extremely diverse

and makes achieving 100 per cent organic quality a highly complex

issue. The restrictive factors are quality, price and availability.

However, Weleda has been able to constantly increase the proportion

of organic raw materials over the years. Although the proportion

of organically cultivated plant-based raw materials fell

slightly in 2011, it increased again from 73 to 77 per cent in 2012

due to a larger decline in conventionally cultivated raw materials

within the overall lower volumes of raw materials purchased. Product

innovations such as the hair care range were the main reasons

for the doubling in near-natural raw materials.

One issue that is frequently discussed at Weleda and by the

general public is the use of palm oil-based products. The pure palm

oil used by Weleda is only sourced from organic cultivation, however,

it is often difficult to trace the origins of processed raw materials

such as palm oil in emulsifiers and surfactants. Palm kernel

oil obtained from the kernels of the fruit is used almost exclusively

as a starting substance for these processed raw materials. These

materials have excellent cosmetic properties and also contribute

to the high quality of Weleda natural and organic cosmetic products.

An interdisciplinary working group is currently drawing up a

strategy for future handling of palm kernel oil-based raw materials,

based on the criteria of traceability of origin and continuous certification

of the entire supply chain. Implementation goals will be

determined in close collaboration with suppliers during 2013.

Weleda premises

Weleda currently operates and uses a total of 537,132 square

metres of land. Medicinal plant gardens, which are biodynamically

cultivated, form part of the company’s premises. In addition to

Germany, Switzerland, France and the Netherlands, there are medicinal

plant gardens in Brazil, New Zealand, the UK and Argentina.

Medicinal plants are cultivated here for the production of

pharmaceuticals and natural and organic cosmetic products.

Weleda makes every effort to maintain and enhance the

biodiversity on its premises. One example of this is the successful

transformation of the company’s car park in Switzerland into

a habitat for native animals and plants. The Swiss Foundation for

Nature and the Economy awarded Weleda Switzerland certification

for the particularly near-natural design.

41


Sustainability

USE OF RESOURCES

Responsible use of energy, water and other resources and the development

of more environmentally friendly packaging are only

natural for Weleda. The central issues of climate neutrality, water

and sustainable packaging are summarised on pages 43 to 47. To

facilitate a transparent comparison with previous years, the data

for 2012 are presented in two ways. In 2010 and 2011, environmental

data for Germany, Switzerland, France and Benelux were recorded.

All majority shareholdings were only consolidated for the

first time in 2012. The figures relating to energy, water, packaging

and waste intensity on the subsequent pages refer exclusively to

production locations in Germany, Switzerland and France. The decline

in trade goods and the rise in packaging consumption are attributable

to the transfer of shower lotion production from a contract

manufacturer to internal facilities, and the manufacture of

skin lotions as a new product.

David Millen

Gardener in the medicinal plant garden, New Zealand

The plants that we cultivate are of the

highest biodynamic quality in order that

we can meet the demands of our medicinal

products. I contribute to ensuring

the offering of high-quality, natural and

organic products to our customers.

My wish for 2013 is that I might live my

life with a greater experience of gratitude

for everything that comes my way.

Input in tonnes 2010 1 2011 1 2012 1 2012 2

Raw materials 3,107 3,199 3,363 3,365

Semi-finished products, bulk goods 21 25 43 43

Trade goods 1,604 1,251 222 222

Packaging 4,585 3,818 4,693 4,816

Advertising material 816 781 483 560

Operational materials 73 156 148 172

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

42


Sustainability

ECONOMICAL USE OF WATER

Water intensity was reduced significantly compared with the

previous year. The targets set for 2012 were almost achieved.

Approximately 3 litres of water per product content were saved.

The production increase in Switzerland led to a rise in water consumption

from the public supply of 7,000 cubic metres. The cause

of the additional consumption of some 3,000 cubic metres by

Weleda Naturals GmbH in 2011 has been analysed and remedied.

Weleda AG in Schwäbisch Gmünd, Germany, used 2,250 cubic

metres more water. This was mainly for the cooling of the administration

building with water from the public supply.

The consumption of groundwater for the first time in 2012

is attributable to the commissioning of the new building in France.

Geothermal energy is being used here for cooling. The cooling

groundwater is fed back into the natural cycle.

The Weleda majority shareholdings accounted for just under

10 per cent of total water consumption. Manufacturing countries

in particular, such as Brazil, have higher consumption. No data

are available on water consumption in some countries, as this is

not systematically measured and is not paid for, for example in

New Zealand.

It was not possible to realise projects planned for 2012

with suppliers in water-poor countries or to implement a water

footprint model. Due to the considerable complexity of these two

goals and the insufficient data available this will not be possible

in the foreseeable future. The aim of reducing water intensity in

manufacturing by 5 per cent every year up to 2015 remains a goal

of the sustainability strategy.

Performance figure: water intensity

This performance figure shows the amount of water con sumed

in litres per kilogram of product content manufactured.

Water consumption in litres per kilogram of product content manufactured

2012 Strategic target 2012

13.0

2012

13.3

2011

16.2

2010

14.4

Water consumption in cubic metres 2010 1 2011 1 2012 1 2012 2

Total 73,861 80,243 146,167 156,766

Water from public water supply 70,903 75,403 82,164 90,515

Rainwater 3 2,958 4,840 5,887 5,887

Groundwater 4 0 0 58,116 60,364

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

3

Dependent on annual rainfall

4

Fed back into the natural cycle

43


Sustainability

ENERGY CONSUMPTION AND EMISSIONS

Energy efficiency is extremely important to Weleda. The introduction

of cold production, in which the product is not heated during

the production process, is one important cornerstone in reducing

energy consumption. This is already in effect in the development

of new natural and organic cosmetic products. This new type of

production in particular improved energy efficiency to 4.3 kilowatt

hours per kilogram of product content manufactured in 2012 compared

to 5.0 kilowatt hours in 2011. Compared to the base year

2010, energy efficiency therefore increased according to plan, by

5 per cent.

Consumption of direct energy sources increased by 11 per

cent in the year under review, while that of indirect energy sources

for the German, Swiss, French and Benelux sites rose by 14 per cent.

These increases are attributable to the considerable growth in production

volumes in Switzerland, and to the expansion of the premises

in France with the construction of a new production and administration

building. Since 2012, part of the energy consumption

in Germany has been covered by biogas. As one building now runs

on natural gas, heating oil volumes have been cut. District heating

was used for the first time throughout the year in Switzerland instead

of natural gas. resulting in an increase in indirect energy

consumption.

The Weleda majority shareholdings accounted for 3 per cent

of direct and 9 per cent of indirect energy consumption. In total,

they accounted for 7 per cent of the total energy consumption of

the Weleda Group. This share is relatively low, as the subsidiaries

are mainly sales offices with no own production. Sixty-eight per

cent of the electricity consumed by the majority shareholdings was

generated from renewable sources.

This is a result of the partial coverage of natural gas needs

by biogas, wood and geothermal power. Indirect CO 2 emissions increased

by 22 per cent, due to the higher emissions values for electricity,

for example for leased buildings.

Ninety-five per cent of the electrical energy used by the

Group in 2012 is renewable, while the share of thermal energy used

was 10 per cent. The total share of renewable energy for the Group

was 52 per cent.

Performance figure: energy intensity

This performance figure shows the amount of energy consumed

per kilogram of product content manufactured.

Energy consumption in kilowatt-hours per kilogram of product

content manufactured

2012 Strategic target 2012

2012

2011

2010

The figure published in the 2011 Sustainability Report contained a

calculation error. This has been corrected. The energy intensity for

2011 is therefore 5.0, not 4.5.

Naushad Kollikkathara

Marketing, USA

4.3

4.3

5.0

4.8

Reduction of greenhouse gas emissions: heat energy

from renewable sources

Even more renewable energy will be used in Germany, Switzerland

and France in the future. To this end, in Germany more than 10 per

cent of natural gas has been replaced by biogas since 2012. In Arlesheim,

Switzerland, the renewable raw material wood is used. The

wood pellet-fired heating plant of a local heating network has been

supplying district heating to heat the buildings since September

2011. The wood is sourced from regional forests. France is using

geothermal power to generate heat and cooling in its new administration

building.

Despite the rise in energy consumption, direct CO 2 emissions

for Germany, Switzerland, France and Benelux grew by only

4 per cent year-on-year.

At Weleda, I believe I’m in the right place to

refine and apply my skills. I want to contribute

to ensuring that the Weleda brand continues to

stand for quality, balance and sustainable

growth, and that we are capable of mastering

corporate challenges and re-emerging as a

sustainable company that offers substantial

value in all its products.

44


Sustainability

Direct energy consumption in gigajoule 2010 1 2011 1 2012 1 2012 2

Total 50,357 44,445 49,230 50,727

Non-renewable energy sources 50,357 44,445 46,600 48,097

Natural gas 49,090 43,384 45,902 47,363

Heating oil 1,267 1,061 446 482

Fuel 232 252 252

Renewable energy sources 0 0 2,630 2,630

Biogas 0 0 2,630 2,630

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

Indirect energy consumption in gigajoule 2010 1 2011 1 2012 1 2012 2

Total 37,106 42,795 48,907 53,544

Non-renewable energy sources 374 2,299 1,030 2,506

Electricity 145 949 656 1,216

Heating and cooling 0 0 0 916

Steam 0 558 0 0

Nuclear energy 229 721 330 330

Other forms of imported energy 0 71 44 44

Renewable energy sources 36,732 40,875 47,877 51,038

Solar energy 0 249 365 367

Wind energy 1,391 445 501 2,135

Geothermal energy 0 0 6 6

Water power 35,340 39,356 44,142 45,664

Biomass-based secondary energy 0 445 2,417 2,420

Hydrogen-based secondary energy 0 0 446 446

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

Emissions in tonnes of CO 2 equivalents 2010 1 2011 1 2012 1 2012 2

Total emissions 3,396 3,506 4,011 4,299

Direct emissions 2,844 2,730 3,062 3,167

Emissions for heating and steam production 2,844 2,730 2,831 2,936

Emissions for transport

Fugitive emissions 3 231 231

Indirect emissions 552 776 949 1,131

Electricity 552 776 949 1,131

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

3

Emissions from refrigerant leakage

45


Sustainability

SUSTAINABLE PACKAGING

Bionics

Developing sustainable packaging is a complex process. A wide

range of criteria have to be taken into account, such as ensuring

product stability, consumer friendliness, an attractive appearance

and requirements in terms of recyclability and freedom from harmful

substances. The ability to manage the packaging in the production

process is also extremely important.

A working group was formed in 2012 from the sustainability,

marketing and research & development departments, to evaluate

existing and new packaging based on these factors. The working

group is also tasked with putting forward suggestions for

improvement. The process is not yet complete and will be continued

in 2013. The goal is to develop a sustainable packaging strategy.

The current offering from packaging manufacturers is not

sufficient for Weleda – in particular with regard to requirements in

terms of sustainability and an optimal barrier function to protect

Weleda products. To develop new packaging, the issue needs to be

considered as a whole. Insight into disciplines such as bionics may

be helpful here.

In addition to seeking new packaging, Weleda is focusing

on improving current packaging. Together with the German Environmental

Protection Encouragement Agency (EPEA), two types

of packaging made from plastic and an aluminium tube based on

the “cradle-to-cradle” principle (an eco-effectiveness principle)

were examined. Due to a lack of data along the supply chain, the

content of the packaging could not be continuously assessed. Analyses

were therefore conducted in order to supply the missing information.

The study provides an initial overview of the packaging

content. Closer collaboration with packaging suppliers is needed

to continue work on the packaging strategy and to be able to offer

Weleda consumers high-quality, sustainable packaging. This will

be incorporated as a goal in the strategy.

Environmental impacts are being reduced by the introduction

of new plastic packaging for skin lotions in 2012 and for shampoos

in 2013. Packaging intensity figures reflect how material use

is falling and the positive impact of lower weights.

Bionics is the application of natural phenomena in technology.

The most common everyday example is the Velcro®

fastener, inspired by burrs. Bionics is based on the assumption

that evolution in living organisms has resulted in optimised

structures and processes in nature, from which we

can learn.

The almond pictured is an example from nature which shows us what

sustainable packaging should ideally be like: optimal packaging for the

living almond kernel and no waste generated.

Performance figure: packaging intensity

This performance figure indicates the weight of

the packaging used in grams per kilogram of all finished

products manufactured in 2012.

Packaging in grams per kilogram of finished products manufactured

2012

2011

2010

368

445

514

The changeover from glass to lightweight plastic packaging led to a

reduction in intensity of 77 grams per kilogram of product.

46


Sustainability

WASTE VOLUMES REDUCED FURTHER

The calculated total amount of waste for the German, Swiss, French

and Benelux sites fell by 23 tonnes on the previous year, with almost

all of the waste generated being recycled. Less than 1 per

cent was sent to landfill. Weleda Switzerland reported a success:

since October 2012, emulsion waste from natural and organic cosmetic

products has been used to generate biogas.

The category of non-hazardous waste primarily comprises

paper and cardboard from the delivery of product packaging, as

well as residual waste, wood and rejected products. Compost volumes

halved in 2012 compared to the previous year. More green

waste was also processed in the compost facility of the medicinal

plant garden at Weleda Schwäbisch Gmünd, Germany, and then fed

back into the environmental cycle.

Volumes of substances classed as hazardous waste rose

slightly due to the growth in production volumes year-on-year.

These include alcoholic tinctures from pharmaceutical production

and chemical additives required for quality assurance and rejected

products.

Comprehensive data was recorded for all majority shareholdings

of Weleda AG for the first time in the year under review.

The figures show that a relatively high proportion of waste volumes

is sent to landfill in those countries with majority shareholdings.

Weleda is making every effort to find local alternatives in order to

reduce this proportion in the future and increase the share of

recycling.

Performance figure: waste intensity

This performance figure shows the amount of waste

generated per tonne of product content manufactured.

Waste quantity in kilograms per tonne of product content manufactured*

2012 Strategic target 2012

2012

2011

2010

115.2

123.5

132.8

136.8

* The basis for these figures was changed from bulk goods to finished

products in 2012. Waste intensity fell by 13 per cent in 2012 – a reduction

more than double the targeted annual value of 5 per cent.

Waste volumes in tonnes 2010 1 2011 1 2012 1 2012 2

Total 1,075 1,020 997 1,083

Non-hazardous waste 1,020 978 948 1,033

Composting 69 40 21 24

Re-use 23 18 19 19

Recycling 542 539 552 592

Recovery 67 25 16 16

Incineration or use as fuel 309 345 332 338

Landfill 10 11 7 36

Other disposal 0 0 1 9

Hazardous waste 55 42 49 50

Recycling 0 3 3 3

Recovery 1 0 1 1

Incineration or use as fuel 54 38 45 45

Other disposal 0 0 0 1

1

Data for Weleda Germany, Switzerland, France and Benelux

2

Data for the countries listed under 1 and all majority shareholdings

47


Financial report

Market, operations, economic development

COMMERCIAL UNIT: FIT FOR THE FUTURE –

ALSO THANKS TO REORGANISATION

Reorganisation and market cultivation were the dominant elements

for the Market business area in the year under review. Priority

was given to reorganisation, in order to secure the company’s

continuing economic viability. The key aspects were:

Streamlining and simplifying the organisation

A management level was removed in each of the central functions

of International Marketing, Innovation Management and Medical

Affairs. The structures below were also pared down. Organisation

in the Weleda subsidiaries was also streamlined. The amalgamation

of the pharmaceuticals and natural and organic cosmetics segments

in some individual areas of responsibility led to a reduction

in marketing, sales and distribution costs. The experience of parting

from colleagues as a result of the reduction in headcount was

painful for all concerned. Leaner structures are a prerequisite, however,

for sustainable, healthy growth.

Reducing marketing, sales and distribution costs for

pharmaceuticals

Personnel and cost structures for marketing, sales and distribution

of pharmaceuticals in Germany, Austria and Switzerland

(D-A-CH) have, until now, been considerably higher than the market

average and – compared to the sales margin – above those for

natural and organic cosmetics. Costs were adjusted to a standard

market level in the year under review.

Price adjustments for pharmaceuticals

Pharmaceuticals prices should at least cover the manufacturing

costs of the product concerned. Therefore, based on this decision,

prices were increased by around 10 per cent, making a considerable

contribution to reducing losses in pharmaceuticals.

Strict cost control

Employees in the Commercial Unit had to provide services to

customers and trading partners in the same high quality during

ongoing reorganisation in the year under review. They largely

achieved this: in the markets, Weleda took clear, positive steps

leading to growth in turnover of 3 per cent in pharmaceuticals and

6 per cent in natural and organic cosmetics. This growth made a

considerable contribution to the improved results in 2012.

Looking outwards

It is not only Weleda that is affected by far-reaching changes, but

the global environment, too. The following trends are important

for the company:

— Economic strength and dynamics are shifting around the

world. While the euro crisis, for example, is hitting Southern

Europe hard, countries such as Brazil and Russia are gaining

in importance. The world’s second largest community of anthroposophic

doctors is now in Brazil.

— The population in the developed countries is ageing. This puts

strain on social systems and increases cost pressure in

healthcare.

— The search for meaning and spirituality are important current

issues.

— Legal requirements for marketing authorisations, not just for

pharmaceuticals but also for cosmetics, are becoming ever

more stringent.

— Competition, particularly in natural and organic cosmetics,

has increased. As a result, an authentic brand identity, innovation

and communication are becoming ever more important.

Consequences and future orientation

Developments in the environment are clearly being felt in the

markets: Weleda Brazil and Russia posted strong growth, while

Southern Europe struggled. Germany, Austria and Switzerland

(D-A-CH) recorded a solid performance (for detailed figures, see

page 86). Innovations were the key growth driver in 2012 and

enjoy a high level of appreciation among consumers and specialists,

as demonstrated by the numerous awards won by Weleda

in 2012 (pages 26 to 31).

The Commercial Unit will focus more heavily on the trends

listed in 2013. Accordingly, the Weleda brand identity, which covers

both pharmaceuticals and natural and organic cosmetics, will

be communicated in a more visible and differentiated way in the

markets. A new design will also contribute to this, based on the

characteristic Weleda colour palette and following an anthroposophic

artistic approach. New product launches are in the pipeline.

Thanks to new marketing authorisations, a range of proven pharmaceuticals

will be launched in several countries where they were

not previously available.

Through its new structure and focus on a sustainable market

presence, the Commercial Unit satisfies important conditions

for optimising the earnings power of the Weleda Group.

48


Financial report

OPERATIONS UNIT: ROUTINE MAINTAINED DESPITE

REORGANISATION

Despite the additional expense generated by organisational

changes within the company, Weleda was able to maintain the routine

operation necessary to supply the markets.

Since June 1 st 2012, the Operations Unit comprises the following

functions:

— Production Processes incorporate Supply Chain Management

(SCM) and production of natural and organic cosmetics and

pharmaceuticals at the Arlesheim and Schwäbisch Gmünd sites.

Pharmaceutical Development is an organisational sub-unit of

Pharmaceutical Production.

— The Quality area consists of International Quality Management

and Quality Assurance and Control in Arlesheim and Schwäbisch

Gmünd. Corporate Analytical Services (CAS) has been merged

with Quality Control at the Schwäbisch Gmünd site. Stability

testing of pharmaceuticals is carried out here and quality control

methods are developed.

— In addition to the Marketing Authorisation departments in Arlesheim

and Schwäbisch Gmünd, Weleda Drug Regulatory Affairs

(WDRA) comprises International Drug Regulatory Affairs

(IDRA), Pharmacovigilance (pharmaceutical safety) and Public

Affairs. The Public Affairs department advocates Weleda products

at pharmaceutical and healthcare-policy level throughout

Europe. This entire area is of vital importance for market entry

for pharmaceuticals.

— Operations also covers the production areas of Weleda Naturals

GmbH (medicinal plant garden and tincture production) as well

as Minerals Processing. As suppliers of starting substances,

these areas are extremely important to both pharmaceuticals

and natural and organic cosmetics.

The reorganisation, the most important aim in 2012, was largely completed

in Operations. A major aim of the measures for management

was to win employees over to the reorganisation and integrate them

accordingly. The second goal was to maintain the savings measures

for 2012, which was achieved thanks to the extraordinary commitment

and exceptional solidarity of the employees with Weleda. Considerable

additional effort was needed to achieve this, but in the end,

supplies of Weleda products to the markets were not only maintained

Simone Roos

Project and Organisation Management, Germany

I’m close to the action when it comes to

changes. The major changes made

me strong, and I learnt that letting go

also brings with it new opportunities.

The experiences gave me courage to take

advantage of these opportunities and

accept the situation. I believe our Weleda

has huge potential.

49


Financial report

according to plan, but improved. A global survey of Weleda subsidiaries

on satisfaction with the supply service by Supply Chain Management

(SCM) in 2012 illustrated this.

Production capacity stepped up

Two machines were brought into operation in manufacturing: at

Arlesheim, a three-tonne mixer was installed and qualified in November

2012, meaning that Weleda is now able to produce large

volumes, particularly for hair care, more efficiently and more rapidly

(page 17). In Schwäbisch Gmünd, a new packaging machine for injectables

has been in operation since August 2012. The new packaging

is easier to open, thus meeting a customer need. It won the

German Packaging Award 2012.

Supply Chain Management (SCM) and Logistics tasks were

shaped by intensive activities to introduce a new operating software

and a new Enterprise Resource Planning (ERP) system in

2012. Logistics in Arlesheim relocated to newly rented storage

facilities at the end of 2012, close to the buildings at the Dychweg

site. This move consolidated Logistics in Arlesheim and increased

productivity.

In the Quality area, the priority was to prepare for and

follow-up after four inspections of Weleda AG and Weleda

Naturals GmbH in Schwäbisch Gmünd by the authorities. Numerous

measures had to be developed and incorporated in the organisation.

The restructuring of the Quality Control laboratories (merger

of Quality Control Schwäbisch Gmünd with Corporate Analytical

Services), which was largely completed in the first quarter of 2013,

was also important.

In 2012, Drug Regulatory Affairs obtained a number of important

marketing authorisations, including for Neurodoron on the

Swiss market and several pharmaceuticals in other countries (see

also page 11).

The year under review was also characterised by various

European regulations affecting pharmaceuticals that were implemented

in the legislation of the individual countries. An amendment

to the German Medicines Act came into effect in October,

covering counterfeiting of pharmaceuticals and pharmacovigilance

(pharmaceutical safety). Weleda must pursue its obligations

as a pharmaceutical company in this regard even more actively

in the future – by improving the collaboration between Weleda

countries. In light of potential European regulation of fragrance

allergens in natural and organic cosmetics, discussions with

opinion leaders and interest groups were necessary in the year

under review.

Monika Wohlfarth

Production, Germany

I experienced just what we could achieve

through combined efforts in 2012:

some expertise and above all flexible

working hours were required of my team.

We all learned from this. This encourages

me for 2013 and beyond and gives me

confidence that Weleda will be successful

over the long term.

50


Financial report

Own starting substances guarantee quality

The medicinal plant garden of Weleda Naturals GmbH in Wetzgau

near Schwäbisch Gmünd was also an attraction for the public in

2012: some 20,000 people visited to find out more about the company’s

raw materials and plant-based starting substances, as well

as its pharmaceuticals and natural and organic cosmetics. The manufacturing

of starting substances such as tinctures and essential

oils is a basic component of the anthroposophic pharmaceutical

activity of Weleda – both in pharmaceuticals and natural and organic

cosmetics.

Forecast

Based on what it has already achieved, Weleda is looking forward

to a positive future, even if European pharmaceutical and cosmetics

legislation or the further development of anthroposophic

medicine are resulting in new challenges. The company will focus

on continuously improving Operations in 2013. In addition to implementing

and stabilising the ERP system, new natural and organic

cosmetic products are being launched.

Dialogue with partners in anthroposophic medicine on the

future of pharmaceuticals is being continued. The expected results

of this will be joint decisions affecting the manufacturing

process.

GENERAL ECONOMIC DEVELOPMENT 2012

AND FORECAST FOR 2013

Business performance

For Weleda, 2012 was a year of far-reaching structural change, in

which restructuring moved resolutely ahead with the aim of securing

the future of the company on a sustainable basis. The turnaround

has been achieved. The major changes within the organisation

have been completed.

The restructuring measures implemented in 2012 were

geared to securing Weleda’s liquidity. The measures have been

successful, and financial liabilities were reduced significantly in the

year under review. This was made possible primarily through managing

down stocks, taking a cautious approach to investment and

improving earnings substantially year-on-year.

Turnover

The Weleda Group posted turnover of EUR 322.5 million in 2012.

This represents an increase of approximately 5 per cent, or EUR

15.0 million, on the 2011 figure (adjusted for changes in exchange

rates: 4.1 per cent or EUR 12.7 million). This means that the new

management team’s target of EUR 322 million was reached.

The precious oil of the sea buckthorn berry is being used

in the new Sea Buckthorn Body Lotion. The worldwide launch

of the new body lotions has contributed decisively to the

increase in turnover in 2012.

51


Financial report

Changes in turnover by market

Some 69 per cent of sales revenues were generated in our three

largest markets: Germany, France and Switzerland, with 90 per cent

achieved in Europe as a whole. A further 7 per cent of sales

revenues were generated in North and South America, with the

remaining 3 per cent coming from other markets.

Turnover in Germany, France and Switzerland increased by

3.0 per cent to EUR 223.6 million (2011: –0.3 per cent). The other

European markets also experienced increases, rising 7.7 per cent

to EUR 65.5 million. In the European market as a whole, turnover

thus increased by 4.0 per cent (2011: –0.4 per cent).

In North and South America, growth amounted to 14.1 per

cent (2011: 6.5 per cent). Turnover in this region came in at EUR

24.3 million. As in 2011, the main growth driver was the US market.

In other markets, sales revenues increased by 10.2 per cent

(2011: –10.1 per cent) to EUR 9.1 million.

Turnover development by segment

Natural and organic cosmetics accounted for 70.4 per cent of

global turnover (2011: 69.8 per cent). The share of pharmaceuticals

contracted marginally to 29.6 per cent (2011: 30.2 per cent).

Global turnover in the pharmaceuticals segment developed

positively and was up 2.9 per cent (2011: 6.4 per cent) at

EUR 95.6 million. The three main markets of Germany, France and

Switzerland, which together account for three-quarters of turnover,

saw an increase of 2.6 per cent. The year-on-year growth

in turnover can be attributed to both rising sales volumes and

price increases. Sales of the pharmaceutical product Iscador continued

to decline, as in prior years.

Global turnover in the natural and organic cosmetics unit

was significantly up on the prior year, with an overall increase of

5.7 per cent (2011: –2.9 per cent). The main markets of Germany,

France and Switzerland achieved 3.4 per cent growth in turnover,

Turnover at exchange rates valid on

closing date of financial statements

All values in million EUR

Turnover adjusted for changes in

exchange rates

All values in million EUR

Investments in property, plant and

equipment and intangible assets

All values in million EUR

2012

322.5

+4.9%

2012

322.5

+4.1%

2012

8.6

2011

307.5

–0.3%

2011

309.8

–0.1%

2011

18.9

2010

308.3

+11.1%

2010

310.2

+11.1%

2010

16.5

2009

277.6

+16.5%

2009

279.3

+12.3%

2009

16.1

2008

238.3

+9.5%

2008

248.7

+9.8%

2008

16.4

Change from the previous year

At exchange rates valid on December 31 st 2012

Change from the previous year adjusted for changes

in exchange rates

Operating result (EBIT)

All values in million EUR

Consolidated result attributable to

shareholders of Weleda AG

All values in million EUR

2012

10.6

2012

0.8

2011

1.3

2011

–8.3

2010

9.1

2010

–3.8

2009

7.1

2009

3.1

2008

1.3

2008

–3.4

52


Financial report

which can be attributed to new product launches and a higher

level of stockpiling among customers. Other markets recorded

double-digit percentage growth in turnover on average.

Natural and organic cosmetics and pharmaceuticals

Weleda Group 2012

Total EUR 322.5 million

Operating result

The operating result (EBIT) increased by EUR 9.3 million year-onyear

to EUR 10.6 million (2011: EUR 1.3 million). The EBIT margin

rose substantially to 3.3 per cent (2011: 0.4 per cent). At 76 per

cent, the gross profit margin contracted somewhat (2011: 77 per

cent). Operating expenses registered a year-on-year decline of

1.0 per cent, or EUR 2.4 million, to EUR 237.6 million. At EUR 125.1

million, employee income remained unchanged versus the prior year.

Weleda natural and

organic cosmetics

Weleda pharmaceuticals

70.4% 29.6%

Result before tax

The result before tax increased by EUR 11.5 million to EUR 4.5

million (2011: EUR –7.0 million). The financial result decreased by

EUR –1.4 million to EUR –6.1 million (2011: EUR –4.7 million). This

decrease versus the previous year, despite the reduction in financial

liabilities, is attributable mainly to value adjustments and provisions

in financial assets.

The improved trend in business led to an increase of EUR

2.6 million in income taxes to EUR 4.0 million (2011: EUR 1.4 million).

At EUR 3.1 million, Germany accounted for the biggest share of income

taxes.

Financial and assets situation

Cash flow from operating activities increased by EUR 31.7 million to

EUR 33.2 million (2011: EUR 1.5 million). Cash flow from investing

activities decreased by EUR 8.9 million year-on-year to EUR 10.6

million (2011: EUR 19.5 million). Of the gross investment of EUR 10.9

million, around EUR 2.5 million were in intangible assets, EUR 6.2

million in property, plant and equipment and EUR 2.3 million in financial

assets. Approximately 86 per cent of investments were in the

three production sites in Schwäbisch Gmünd, Arlesheim and Huningue.

Given the improved trend in business and reduced level of

investment activity, cash flow after investing activities amounted

to EUR 22.7 million (2011: EUR –18.0 million). Of this figure, EUR 20.2

million was used to repay financial liabilities (financial liabilities had

increased by EUR 22.6 million in 2011).

Current financial liabilities contracted by EUR 10.2 million

to EUR 17.6 million. Non-current financial liabilities contracted by

EUR 9.5 million to EUR 78.5 million. Cash and cash equivalents, including

securities, increased by EUR 2.6 million as at year end to

EUR 12.5 million. Net debt contracted by EUR 22.3 million to EUR

83.6 million (2011: EUR 105.9 million). The equity ratio increased

by 2.8 percentage points to 32.0 per cent (2011: 29.2 per cent).

Market output Weleda Group 2012 by market

Total EUR 322.5 million

France

56.3 +3.3%*

Germany

136.7 +2.8%*

* Change from the previous year adjusted for

changes in exchange rates

Rest of Europe

65.5 +6.5%*

North/South America

24.3 +11.2%*

Other markets

9.1 +4.8%*

Switzerland

30.6 +0.9%*

53


Financial report

Forecast 2013

Following the far-reaching organisational changes and the measures

to secure liquidity in 2012, our focus for 2013 is to further

increase earnings power. Most of the cost-saving effects from restructuring

will not take effect until well into 2013. According to

economic forecasts, growth of less than 1 per cent is anticipated

in the main markets of Germany, France and Switzerland. Forecasts

are negative for southern European markets and optimistic for

North and South America. Against this backdrop, the sales growth

target is around 2 per cent, and a further improvement in earnings

is also being targeted.

Weleda’s activities in 2012 were shaped by economic

necessities. In order for business to develop sustainably in harmony

with Weleda’s mission, ecological and social requirements must also

be given adequate consideration. Weleda will once again be able

to focus on these aspects more intensively in the future.

Value-added statement 2012

The value-added statement (see page 3) shows how Weleda’s business

actions create value for the company: unlike the income statement,

which is based on the viewpoint of the owners, the valueadded

statement explains the contribution of the Weleda Group

to private and public income. It shows the expense at which Weleda

achieved its company performance and how the added value

generated was distributed.

In the 2012 financial year, company performance increased

by EUR 15.0 million to EUR 327.1 million. After deduction of advance

payments, the added value of the Weleda Group amounted

to EUR 134.6 million. Added value per employee of the Weleda

Group amounted to EUR 70,470, 16.8 per cent higher than in 2011.

A seven-figure amount was again spent on donations and similar

contributions to associated social institutions in 2012 as in 2011.

This amount is included in the advance payments.

The added value was sufficient to cover the income of our

employees. Weleda views its employees as co-entrepreneurs who

are part of the business process. Supporting and promoting a sense

of personal responsibility and self-awareness on the part of every

individual is extremely important to the company. The public authorities

received EUR 4 million of added value in the form of taxes.

A further EUR 5.0 million is attributable to interest for creditors.

Following a proposal from the Board of Directors, no

dividends will be distributed to shareholders for 2012.

Jayn Sterland

Commercial Director, UK

I’m responsible for the direction and performance

of Weleda in the UK and Ireland.

It’s important that I understand the needs of

our customers and that I turn consumers into fans.

This mindset is what led us, for example,

to develop new homeopathic products that can

be taken orally using a spray. A perfect solution

for our modern, sophisticated consumer.

54


Consolidated Annual

Financial Report 2012

Weleda Group

Table of contents

Balance sheet of the Weleda Group Page 56

Income statement of the Weleda Group Page 57

Cash flow statement of the Weleda Group Page 58

Consolidated statement of shareholders' equity of the Weleda Group Page 59

Notes to the consolidated financial statements of the Weleda Group Page 60

Report of the statutory auditor Page 74

Auditors and Group Auditors

PricewaterhouseCoopers Ltd, Basel, Switzerland

Corporate headquarters

Weleda AG

Dychweg 14, 4144 Arlesheim, Switzerland

Tel. +41 61 705 21 21, www.weleda.com, www.weleda.ch

Contact person for shareholders

Paul Mackay, Chairman of the Board of Directors

Secretariat and share register

Sabine Lexen

Telefon +41 61 705 22 02

Subsidiary in Germany

Weleda AG

Möhlerstrasse 3-5, 73525 Schwäbisch Gmünd, Germany

Tel. +49 7171 91 90, www.weleda.de

55


Consolidated annual financial report of the Weleda Group

Balance sheet of the Weleda Group

Assets Notes 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Non-current assets

Intangible assets 1 7,250 7,368

Property, plant and equipment 1 94,235 102,418

Financial assets 1 4,640 3,800

Total non-current assets 106,125 113,586

Current assets

Inventories 2 69,042 81,842

Trade receivables 3 44,665 47,468

Other current receivables 4 3,958 5,403

Deferred charges and prepaid expenses 3,087 3,443

Marketable securities 126 113

Cash and cash equivalents 12,364 9,827

Total current assets 133,242 148,096

Total assets 239,367 261,682

Shareholders' equity and liabilities Notes 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Shareholders’ equity

Share capital 3,800 3,800

Non-voting share capital 7,600 7,600

Capital reserves 9,600 9,600

Retained earnings 52,592 52,092

Shareholders' equity excl. non-controlling interests 73,592 73,092

Non-controlling interests 3,028 3,266

Shareholders' equity incl. non-controlling interests 76,620 76,358

Current liabilities

Trade payables 5 17,792 22,143

Current financial liabilities 17,595 27,762

Other current liabilities 6 8,544 8,952

Current provisions 7 17,321 19,017

Accrued charges and deferred income 3,189 2,803

Total current liabilities 64,441 80,677

Non-current liabilities

Non-current financial liabilities 8 78,499 88,043

Other non-current liabilities 666 866

Non-current provisions 7 19,141 15,738

Total non-current liabilities 98,306 104,647

Total liabilities 162,747 185,324

Total shareholders' equity and liabilities 239,367 261,682

56


Consolidated annual financial report of the Weleda Group

Income statement of the Weleda Group

Notes 2012

in 1,000 EUR

2011

in 1,000 EUR

Net sales 9 322,482 307,458

Changes in inventories of finished goods

and work in progress –6,228 314

Total sales 316,254 307,772

Cost of goods sold –72,566 –70,757

Gross profit 243,688 237,015

Other income 10 4,516 4,277

Employee income and social expenditure 11 –125,139 –125,069

Depreciation and amortisation 12 –14,660 –13,424

Other operating expenses 13 –97,802 –101,460

Total operating expenditure –237,601 –239,953

Operating result (EBIT) 10,603 1,339

Financial result 14 –6,081 –4,693

Ordinary result before tax 4,522 –3,354

Extraordinary result 0 –3,600

Result before tax (EBT) 4,522 –6,954

Income taxes 15 –4,002 –1,415

Consolidated result for the year 520 –8,369

Attributable to shareholders of Weleda AG 797 –8,338

Attributable to non-controlling interests –277 –31

57


Consolidated annual financial report of the Weleda Group

Cash flow statement of the Weleda Group

2012

in 1,000 EUR

2011

in 1,000 EUR

Consolidated result for the year 520 –8,369

Depreciation and amortisation and value adjustments on non-current assets 15,813 13,424

Changes in provisions 1,627 2,622

Gain/loss from the disposal of non-current assets 193 –32

Changes in trade receivables 2,749 1,302

Changes in inventories 12,938 –3,792

Changes in other receivables and deferred charges/prepaid expenses 1,613 –706

Changes in trade payables –4,347 –4,225

Changes in other current liabilities and accrued charges /deferred income 6 –172

Other items not affecting liquidity 1,974 1,266

Currency and valuation influences not affecting liquidity 253 207

Loss from associated companies –125 –61

Cash flow from operating activities 33,214 1,464

Investments in property, plant and equipment –6,187 –15,612

Divestments of property, plant and equipment 234 156

Investments in financial assets –2,301 –980

Divestments of financial assets 144 254

Investments in intangible assets –2,450 –3,286

Divestments of intangible assets 2 0

Cash flow from investing activities –10,558 –19,468

Dividend payments to non-controlling interests 0 –30

Change in current financial liabilities –10,215 –165

Change in non-current financial liabilities –9,975 22,769

Disposal/purchase of own shares 140 –56

Cash flow from financing activities –20,050 22,518

Total cash flow 2,606 4,514

Cash and cash equivalents at start of reporting period 1 9,940 5,412

Total cash flow 2,606 4,514

Currency translation effect on cash and cash equivalents 1 –56 14

Cash and cash equivalents at end of period 1 12,490 9,940

1

including securities

58


Consolidated annual financial report of the Weleda Group

Consolidated statement of shareholders'

equity of the Weleda Group

as at December 31 st

Consolidated statement

of shareholders' equity

in 1,000 EUR

Company

capital 1

Capital

reserves

Cumulated

currency

difference

Other

retained

earnings

Total

retained

earnings

Total excl.

noncontrolling

interests

Non-controlling

interests

Total incl.

noncontrolling

interests

Shareholders' equity as at

January 1 st 2011 11,400 0 0 69,687 69,687 81,087 3,298 84,385

Reclassification* 9,600 –9,600 –9,600 0 0

Loss/profit for the year –8,338 –8,338 –8,338 –31 –8,369

Dividends 0 0 –30 –30

Currency translation effect / Other –107 450 2 343 343 29 372

Shareholders' equity as at

December 31st 2011 11,400 9,600 –107 52,199 52,092 73,092 3,266 76,358

Loss/profit for the year 797 797 797 –277 520

Currency translation effect / Other –378 81 2 –297 –297 39 –258

Shareholders' equity as at

December 31st 2012 11,400 9,600 –485 53,077 52,592 73,592 3,028 76,620

1

Company capital is broken down as follows:

6,880 registered shares at CHF 112.50

3,984 registered shares at CHF 125.00

3,478 registered shares at CHF 1,000.00

19,000 registered non-voting shares at CHF 500.00

There was no change in the company capital versus the prior year.

2

Primarily value adjustment from Weleda S.A. France not affecting profit

* Reclassification of premium of EUR 9.6 million from other retained earnings to capital reserves in accordance with capital

contribution principle. This reclassification was approved by the Board of Directors within the framework of the approval

of the financial statements for 2011.

59


Consolidated annual financial report of the Weleda Group

Notes to the consolidated financial

statements of the Weleda Group

Consolidation principles

General remarks

The consolidated financial statements of the Weleda Group comply with the law and the articles of incorporation. The statements are

prepared in accordance with the corresponding requirements of the Swiss Code of Obligations. Certain items of the balance sheet, as

well as the income statement, have been summarised in order to provide the reader with a better overview. These items are explained

in detail in the notes.

Scope of consolidation

In addition to the parent company Weleda AG Arlesheim and its branch offices Weleda AG Schwäbisch Gmünd and Weleda AG Basel,

18 subsidiaries are fully consolidated within the Weleda Group statements. These companies are, without exception, related to each

other and are under the control of Weleda AG Arlesheim. Weleda AG has direct or indirect holdings of 50 per cent or more in these

companies. The Australian company Weleda Australia PTY was incorporated directly in 2012. This company was formerly held as a

subsidiary of Weleda New Zealand Ltd.

Weleda (Australasia) Ltd, New Zealand, was consolidated using the equity method. A non-controlling interest in Peru and one

in Japan were not consolidated. These are disclosed in the consolidated balance sheet under financial assets.

Consolidation method

The consolidated financial statements are based on the annual statements prepared in accordance with the respective commercial

regulations as at December 31 st 2012. The normal calendar year serves as the consolidation time period. Capital consolidation is

carried out in accordance with the Anglo-Saxon purchase method. For the fully consolidated companies, assets, liabilities, expenses

and income are stated at 100 per cent. Non-controlling interests in consolidated shareholders' equity and profit/loss for the year are

disclosed separately.

The carrying amounts of equity holdings of the parent company were offset against the available shareholders' equity values

of the subsidiary companies. In accordance with the full consolidation method, assets and liabilities as well as expenses and income

also of those companies in which a third party is involved were included in full in the Group accounts. Third parties' shares of shareholders'

equity and of the final results of consolidated companies are disclosed separately.

60


Consolidated annual financial report of the Weleda Group

Currency translation

The financial statements of consolidated companies in foreign currencies are translated as follows: current assets, non-current assets

and liabilities translated at year-end rates (rate on balance sheet date); shareholders' equity at historical rates. The income statement

and the cash flow statement are translated using average rates for the year. The following currency exchange rates have been

applied:

Year-end rates in EUR

2012 rates

on balance

sheet date

2012 average

rates

2011 rates

on balance

sheet date

2011 average

rates

1 CHF (Swiss franc) 0.829 0.830 0.824 0.810

1 USD (US dollar) 0.758 0.778 0.770 0.719

1 GBP (pound sterling) 1.233 1.233 1.197 1.152

100 SEK (Swedish krona) 11.659 11.490 11.237 11.070

1 BRL (Brazilian real) 0.370 0.399 0.413 0.430

61


Consolidated annual financial report of the Weleda Group

Intragroup transactions, balances and intercompany profits

All intragroup transactions and balances were eliminated, as were all intercompany profits stated in the balance sheet.

Balance sheet and valuation principles

The financial statements of the included companies have been calculated in accordance with the commercial conditions in their

respective country. Acquired intangible assets were calculated at the cost of acquisition, less scheduled amortisation. Property, plant

and equipment were recognised at acquisition or production cost minus depreciation and value adjustments.

Small value items were depreciated in full in the year they were added. Financial assets have been strictly included at the cost

of acquisition, less amortisation where necessary. The valuation of inventories was conducted on the basis of acquisition or

production cost while observing the principle of lower cost or market. Receivables and other asset items were reported at their

nominal values. General risk of loss and individual credit risk have been accounted for with lump sums and specific charges for bad and

doubtful debts. Marketable securities in current assets have been included at lower of cost or market. The designated provisions for

pension plans and similar obligations have been calculated based on actuarial principles, while taking tax regulations into account and

fully covering fiscal fractional values. Remaining provisions cover all recognisable risks for undetermined obligations. Liabilities are

included at the respective amount at which they are to be repaid.

62


Consolidated annual financial report of the Weleda Group

Notes to the balance sheet and the income statement

1 Non-current assets

in 1,000 EUR

Intangible

assets

Property, plant

and equipment

Financial assets

Total noncurrent

assets

as at January 1 st 2011 6,799 97,788 3,004 107,591

Currency translation effect 13 647 13 673

Additions 3,286 15,612 1,041 19,939

Disposals –25 –910 –258 –1,193

Reclassification 8 –8 0 0

Depreciation and amortisation –2,713 –10,711 0 –13,424

as at December 31 st 2011 7,368 102,418 3,800 113,586

Currency translation effect –6 – 44 12 –38

Additions 2,450 6,187 2,125 10,762

Disposals –548 –1,680 –144 –2,372

Reclassification 26 –26 0 0

Depreciation and amortisation –2,040 –12,620 –1,153 –15,813

as at December 31 st 2012 7,250 94,235 4,640 106,125

Intangible assets mainly concern software. The increase in property, plant and equipment consists primarily of the investment

projects as well as expenditure on replacements and rationalisation in Germany, France and Switzerland.

The largest share of the amount under Property, plant and equipment, totalling EUR 28 million, relates to the branch office in

Germany. Switzerland accounts for EUR 26 million, and Weleda France has property, plant and equipment totalling EUR 19 million.

Financial assets include all non-controlling interests as well as non-current amounts due from companies in which a non-controlling

interest is held and from third parties.

63


Consolidated annual financial report of the Weleda Group

2 Inventories

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Raw, auxiliary and operating materials 22,796 25,106

Unfinished products 8,234 8,102

Finished products 16,289 23,466

Trade goods 27,902 29,381

Value adjustments on inventories –6,179 –4,213

Total inventories 69,042 81,842

3 Trade receivables

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

From third parties 44,133 47,362

From companies in which a non-controlling interest is held 532 106

Total trade receivables 44,665 47,468

64


Consolidated annual financial report of the Weleda Group

4 Other current receivables

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

From third parties 3,389 4,590

From companies in which a non-controlling interest is held 12 0

From shareholders 0 120

Own shares and non-voting shares 557 693

Total other current receivables 3,958 5,403

Own shares and non-voting shares 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Stock of own shares (in number: 194, 2011: 304) 380 490

Stock of own non-voting shares (in number: 179, 2011: 197) 177 203

Total own shares and non-voting shares 557 693

5 Trade payables

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

To third parties 17,792 22,143

Total trade payables 17,792 22,143

6 Other current liabilities

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

To third parties 7,449 7,548

To shareholders 1,095 1,404

Total other current liabilities 8,544 8,952

65


Consolidated annual financial report of the Weleda Group

7 Provisions

in 1,000 EUR

Pension

provisions

Tax provisions

Other

provisions 1

Total provisions

as at January 1 st 2011 13,426 2,933 15,563 31,922

Increase 2,982 1,130 9,778 13,890

Utilisation –514 –1,839 –6,142 –8,495

Decrease –209 –311 –2,254 –2,774

Currency translation effect 53 –2 161 212

as at December 31 st 2011 15,738 1,911 17,106 34,755

Increase 3,325 2,012 9,812 15,149

Utilisation –373 –882 –9,451 –10,706

Decrease –4 0 –2,813 –2,817

Currency translation effect 57 0 24 81

as at December 31 st 2012 18,743 3,041 14,678 36,462

of which current provisions 0 3,041 14,280 17,321

of which non-current provisions 18,743 0 398 19,141

1

Other provisions include, inter alia, vacation entitlement that has not yet been used, and overtime, severance pay and currency provisions.

66


Consolidated annual financial report of the Weleda Group

8 Non-current financial liabilities

Non-current financial liabilities 2011

in 1,000 EUR

Residual maturity

up to 5 years

Residual maturity

over 5 years

Total

Bank loans 29,962 11,529 41,491

Funds, debenture bonds and trustee loans 31,833 8,724 40,557

Other non-current financial liabilities 4,083 1,912 5,995

Total 65,878 22,165 88,043

Non-current financial liabilities 2012

in 1,000 EUR

Residual maturity

up to 5 years

Residual maturity

over 5 years

Total

Bank loans 32,049 4,936 36,985

Funds, debenture bonds and trustee loans 29,472 7,200 36,672

Other non-current financial liabilities 2,803 2,039 4,842

Total 64,324 14,175 78,499

Current and non-current debt was reduced significantly in 2012. Investments were financed using self-generated means. Non- current

bank loans in Switzerland, Germany, France, the Netherlands and the UK were reduced via scheduled repayments. Trustee loans (FGB)

due for repayment worth EUR 1.2 million, the last bonded loan (Triodos NL) worth EUR 1.8 million and a pension fund loan worth

EUR 2.3 million were repaid. GLS Weleda Fund I was decreased by EUR 1 million and the remaining amount extended for a further four

years.

The current portion of these financial liabilities amounted to EUR 6.4 million (2011: EUR 9.0 million) as at December 31 st 2012.

67


Consolidated annual financial report of the Weleda Group

9 Net sales

Product groups

2012

in 1,000

EUR

2012

%

2011

in 1,000

EUR

2011

%

Natural and organic cosmetics 226,878 70.4 214,544 69.8

Pharmaceuticals 95,604 29.6 92,914 30.2

Net sales 322,482 100 307,458 100

Markets 2012

in 1,000

EUR

2012

%

2011

in 1,000

EUR

2011

%

Switzerland 30,593 9.5 29,616 9.6

Germany 136,652 42.4 132,917 43.3

France 56,330 17.5 54,549 17.7

Rest of Europe 65,514 20.3 60,834 19.8

North /South America 24,311 7.5 21,300 6.9

Other markets 9,082 2.8 8,242 2.7

Net sales 322,482 100 307,458 100

10 Other income

2012

in 1,000 EUR

2011

in 1,000 EUR

Total other income 4,516 4,277

Other income includes income from the release of provisions, rental income and gains from the sale of property, plant and

equipment.

68


Consolidated annual financial report of the Weleda Group

11 Employee income and social expenditure

2012

in 1,000 EUR

2011

in 1,000 EUR

Employee income 98,267 97,856

Social contributions and pension fund 26,872 27,213

Total expenses 125,139 125,069

12 Depreciation and amortisation

2012

in 1,000 EUR

2011

in 1,000 EUR

Intangible assets 2,040 2,713

Property, plant and equipment 12,620 10,711

Total depreciation and amortisation 14,660 13,424

13 Other operating expenses

2012

in 1,000 EUR

2011

in 1,000 EUR

Sales and distribution costs 54,608 58,400

Operating costs 18,747 17,878

Administrative costs 16,572 19,353

Contributions, levies, property and capital taxes 2,458 2,406

Other various expenses 5,417 3,423

Total other operating expenses 97,802 101,460

The item Other operating expenses includes, but is not limited to, sales and distribution costs such as advertising and market communication,

sales documents, material costs of external sales and all postal costs. It also includes costs for building and machine maintenance,

legal and consulting costs, IT expenses and costs for third-party research as well as non-operating expenses.

69


Consolidated annual financial report of the Weleda Group

14 Financial result

2012

in 1,000 EUR

2011

in 1,000 EUR

Interest and similar income 3,253 1,982

Interest and similar expenses –7,148 –6,675

Value adjustments/provisions financial assets –2,186 0

Total financial result –6,081 –4,693

The item Interest and similar expenses includes interest in the amount of EUR 1,522,000 for the GLS fund in Germany, the Dutch

debenture loans and the Swiss trustee loans.

15 Income taxes

Income taxes occur mainly in Germany, Brazil, Austria and the Netherlands.

70


Consolidated annual financial report of the Weleda Group

Other information pursuant to Article 663b ff. Swiss Code of Obligations

Contingent liabilities and other financial obligations 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Guarantees 10,062 10,170

Long-term rental agreements

Residual maturity up to 5 years 4,893 4,275

Residual maturity over 5 years 1,626 903

Total 6,519 5,178

Leasing obligations

Residual maturity up to 5 years 10,205 8,632

Residual maturity over 5 years 14,157 11,525

Total 24,362 20,157

Leasing obligations for Weleda AG include computer hardware, vehicles and production machinery as well as buildings. The newbuild

in France which was completed in 2012 was funded on a leasing basis (EUR 21 million).

Liabilities for benefit provisions 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Pension fund, Weleda AG, Arlesheim 2,096 4,645

Fire insurance values for property, plant and equipment 31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Weleda Group 275,793 256,891

Total amount of assets pledged or assigned to secure own liabilities

and assets under reservation of ownership

31.12.2012

in 1,000 EUR

31.12.2011

in 1,000 EUR

Weleda Group 36,119 37,039

71


Consolidated annual financial report of the Weleda Group

Overview of Group and holding companies

Consolidated

companies

Registered office Function Consolidation

method

Currency

Company

capital

in 1,000

Capital

share

2012

Capital

share

2011

Weleda AG

CH-Arlesheim/Basel

D-Schwäbisch Gmünd

Headquarters: incl. production,

trade and services

Full CHF 4,750 100.0% 100.0%

Weleda Benelux SE NL-Zoetermeer Production and trade Full EUR 2,269 100.0% 100.0%

Weleda Ges.m.b.H. A-Vienna No operative function Full EUR 36 100.0% 100.0%

Weleda Ges.m.b.H. & Co. KG A-Vienna Trade Full EUR 1,100 100.0% 100.0%

Weleda Trademark AG CH-Arlesheim Services Full CHF 1,000 100.0% 100.0%

Weleda Inc. USA-Irvington, NY Trade Full USD 8,525 100.0% 100.0%

Weleda Italia S.r.l. I-Milan Trade Full EUR 500 100.0% 100.0%

Weleda Ltda. BRA-São Paulo Production and trade Full BRL 27,140 100.0% 100.0%

Weleda Naturals GmbH D-Schwäbisch Gmünd Production Full EUR 25 100.0% 100.0%

Weleda East GmbH RUS-Moscow Trade Full RUB 10 100.0% 100.0%

Weleda S.A.U. E-Madrid Trade Full EUR 685 100.0% 100.0%

Weleda (NZ) Ltd NZL-Havelock North Production and trade Full NZD 169 100.0% 47.3%

Weleda Australia PTY Ltd AUS-Avalon Trade Full AUD 0 100.0% –

Weleda Ltda. CHL-Santiago de Chile Production and trade Full CLP 491,321 99.7% 99.7%

Weleda Holding AB S-Järna Holding Full SEK 12,300 99.4% 99.3%

Weleda spol. s.r.o. CZ-Prague Trade Full CZK 19,684 99.3% 99.3%

Weleda S.A. ARG-Buenos Aires Production and trade Full ARS 7,622 95.0% 95.0%

Weleda UK Ltd GB-Ilkeston Production and trade Full GBP 1,495 94.5% 94.0%

Weleda S.A. F-Huningue Production and trade Full EUR 3,400 82.7% 82.5%

Weleda (Australasia) Ltd NZL-Havelock North Services Equity NZD 1,139 99.5% 99.5%

72


Consolidated annual financial report of the Weleda Group

Information regarding the carrying out of a risk assessment

In the course of the 2012 financial year, the management of the Weleda Group carried out the process to identify and assess material

corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding

measures.

Events after the balance sheet date

No events which could have a significant impact on the 2012 financial statements occurred between the balance sheet date and the

Group financial statements being approved by the Board of Directors on April 19 th 2013.

The branch office in Basel was closed with effect on January 16 th 2013.

73


Consolidated annual financial report of the Weleda Group

Report of the statutory auditor

to the General Shareholders' Meeting of Weleda AG, Arlesheim

Report of the statutory auditor on the consolidated

financial statements

As statutory auditor, we have audited the accompanying consolidated

financial statements of Weleda AG, which comprise the

balance sheet, income statement, cash flow statement and notes,

pages 56 to 73, for the year ended December 31 st 2012.

Board of Directors' responsibility

The Board of Directors is responsible for the preparation of the

consolidated financial statements in accordance with the requirements

of Swiss law and the consolidation and valuation

principles described in the notes. This responsibility includes designing,

implementing and maintaining an internal control system

relevant to the preparation of consolidated financial statements

that are free from material misstatement, whether due to fraud

or error. The Board of Directors is further responsible for selecting

and applying appropriate accounting policies and making

accounting estimates that are reasonable in the circumstances.

Auditor's responsibility

Our responsibility is to express an opinion on these consolidated

financial statements based on our audit. We conducted our audit

in accordance with Swiss law and Swiss Auditing Standards.

Those standards require that we plan and perform the audit to

obtain reasonable assurance whether the consolidated financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the consolidated

financial statements. The procedures selected depend on the

auditor's judgement, including the assessment of the risks of

material misstatement of the consolidated financial statements,

whether due to fraud or error. In making those risk assessments,

the auditor considers the internal control system relevant to the

entity's preparation of the consolidated financial statements in

order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion

on the effectiveness of the entity's internal control system. An

audit also includes evaluating the appropriateness of the

accounting policies used and the reasonableness of accounting

estimates made, as well as evaluating the overall presentation of

the consolidated financial statements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide

a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements for the year

ended December 31 st 2012 comply with Swiss law as well as

with the consolidation and valuation principles described in the

notes.

Report on other legal requirements

We confirm that we meet the legal requirements on licensing

according to the Auditor Oversight Act (AOA) and independence

(article 728 CO) and that there are no circumstances incompatible

with our independence. In accordance with article 728a paragraph

1 item 3 CO and Swiss Auditing Standard 890, we confirm

that an internal control system exists which has been designed

for the preparation of financial statements according to the instructions

of the Board of Directors.

We recommend that the consolidated financial statements

submitted to you be approved.

PricewaterhouseCoopers Ltd, Basel, April 19 th 2013

Dr. Rodolfo Gerber, Audit expert /Auditor in Charge

Thomas Strebel, Audit expert

74


Annual Financial Report 2012

Weleda AG

consisting of Arlesheim headquarters and branch offices Schwäbisch Gmünd and Basel

Table of contents

Balance sheet of Weleda AG Page 76

Income statement of Weleda AG Page 77

Statement of shareholders' equity of Weleda AG Page 78

Notes to the financial statements of Weleda AG Page 79

Proposed appropriation of the result for the year Page 84

Report of the statutory auditor Page 85

75


Annual financial report of Weleda AG

Balance sheet of Weleda AG

Assets Notes 31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Non-current assets

Intangible assets 7,084 6,862

Property, plant and equipment 64,929 71,828

Financial assets 1 60,473 59,405

Total non-current assets 132,486 138,095

Current assets

Inventories 54,581 67,813

Trade receivables 2 36,773 38,754

Other current receivables 3 10,695 11,490

Deferred charges and prepaid expenses 1,400 1,917

Marketable securities 152 137

Cash and cash equivalents 9,569 7,027

Total current assets 113,170 127,138

Total assets 245,656 265,233

Shareholders' equity and liabilities Notes 31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Shareholders’ equity

Share capital 4,750 4,750

Non-voting share capital 9,500 9,500

Premium from capital contribution 12,000 12,000

Reserves 82,515 82,488

Accumulated loss –18,508 –21,661

Total shareholders' equity 90,257 87,077

Current liabilities

Trade payables 4 16,199 18,701

Current financial liabilities 13,243 25,538

Other current liabilities 5 4,123 4,503

Current provisions 17,151 19,618

Accrued charges and deferred income 2,071 1,270

Total current liabilities 52,787 69,630

Non-current liabilities

Non-current financial liabilities 6 77,677 83,516

Other non-current liabilities 7 7,519 9,780

Non-current provisions 17,416 15,230

Total non-current liabilities 102,612 108,526

Total liabilities 155,399 178,156

Total shareholders' equity and liabilities 245,656 265,233

76


Annual financial report of Weleda AG

Income statement of Weleda AG

Notes 2012

in 1,000 CHF

2011

in 1,000 CHF

Net sales 257,677 247,876

Changes in inventories of finished goods and work in progress –5,862 –214

Total sales 251,815 247,662

Cost of goods sold –87,639 –85,514

Gross profit 164,176 162,148

Other income 12,452 11,379

Employee income and social expenditure –91,727 –95,147

Depreciation and amortisation –12,114 –11,195

Other operating expenses –63,336 –71,081

Total operating expenditure –167,177 –177,423

Operating result (EBIT) 9,451 –3,896

Financial result 8 –2,616 –3,581

Ordinary result before tax 6,835 –7,477

Extraordinary result 0 –2,500

Result before tax (EBT) 6,835 –9,977

Income taxes –3,682 –1,211

Profit/loss for the year 3,153 –11,188

Loss brought forward –21,661 –10,473

Accumulated loss –18,508 –21,661

77


Annual financial report of Weleda AG

Statement of shareholders' equity of Weleda AG

as at December 31 st

Statement of shareholders' equity

in 1,000 CHF

Company

capital 1

Premium

from capital

contribution

Reserve for

own shares

Other legal

reserve

Other

reserves

Accumulated

loss

Total

shareholders'

equity

Shareholders' equity as

at January 1 st 2011 14,250 0 772 15,400 78,338 –10,474 98,286

Reclassification* 12,000 –12,000 0

Loss/profit for the year –11,188 –11,188

Currency translation effect –20 –20

Purchase of own shares 69 –69 0

Shareholders' equity as

at December 31 st 2011 14,250 12,000 841 3,400 78,249 –21,662 87,078

Loss/profit for the year 3,153 3,153

Currency translation effect 25 1 26

Disposal of own shares –168 168 0

Shareholders' equity as

at December 31 st 2012 14,250 12,000 673 3,400 78,442 –18,508 90,257

1

Company capital is broken down as follows:

6,880 registered shares at CHF 112.50

3,984 registered shares at CHF 125.00

3,478 registered shares at CHF 1,000.00

19,000 registered non-voting shares at CHF 500.00

There was no change in the company capital versus the prior year.

* Reclassification of premium of CHF 12 million from other legal reserve to premium from capital contribution in accordance with the capital contribution

principle. This reclassification was approved by the Board of Directors within the framework of the approval of the financial statements for 2011.

78


Annual financial report of Weleda AG

Notes to the financial statements of Weleda AG

1 Financial assets

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Shares in associated companies 45,838 45,245

Shares in non-controlling interests 130 110

Loans to associated companies 13,086 13,712

Loans to companies in which a non-controlling interest is held 1,112 0

Other financial assets 307 338

Total financial assets 60,473 59,405

2 Trade receivables

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

From third parties 26,317 29,480

From associated companies 9,826 9,162

From companies in which a non-controlling interest is held 630 112

Total trade receivables 36,773 38,754

3 Other current receivables

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

From third parties 1,051 2,492

From associated companies 8,957 8,012

From companies in which a non-controlling interest is held 14 0

From shareholders 0 145

Own shares and non-voting shares 673 841

Total other current receivables 10,695 11,490

79


Annual financial report of Weleda AG

4 Trade payables

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

To third parties 11,709 16,725

To associated companies 4,490 1,976

Total trade payables 16,199 18,701

5 Other current liabilities

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

To third parties 1,367 1,575

To associated companies 2,284 2,399

To shareholders 472 529

Total other current liabilities 4,123 4,503

6 Non-current financial liabilities

Non-current liabilities 2011

in 1,000 CHF

Residual maturity

up to 5 years

Residual maturity

over 5 years

Total

Bank loans 17,445 11,784 29,229

Funds, debenture bonds and trustee loans 36,426 10,590 47,016

Other non-current financial liabilities 4,950 2,321 7,271

Total 58,821 24,695 83,516

Non-current liabilities 2012

in 1,000 CHF

Residual maturity

up to 5 years

Residual maturity

over 5 years

Total

Bank loans 23,844 4,000 27,844

Funds, debenture bonds and trustee loans 35,566 8,689 44,255

Other non-current financial liabilities 3,257 2,321 5,578

Total 62,667 15,010 77,677

The current portion of these financial liabilities amounted to EUR 4.7 million (2011: EUR 4.4 million) as at December 31 st 2012.

80


Annual financial report of Weleda AG

7 Other non-current liabilities

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

To associated companies 7,519 9,780

Total other non-current liabilities 7,519 9,780

8 Financial result

2012

in 1,000 CHF

2011

in 1,000 CHF

Dividends from associated companies 2,502 318

Licence income from associated companies 1,137 1,099

Interest from associated company loans 641 777

Interest and similar income from third parties 2,800 1,303

Interest and similar expenses relating to associated companies –643 –680

Interest and similar expenses relating to third parties –6,479 –6,398

Value adjustments/provisions financial assets –2,574 0

Total financial result –2,616 –3,581

81


Annual financial report of Weleda AG

Information pursuant to article 663b ff. Swiss Code of Obligations

Total amount of assets pledged or assigned to secure own liabilities

and assets under reservation of ownership

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Weleda AG, Arlesheim 29,224 32,567

Contingent liabilities and other financial obligations

31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Guarantees 10,819 10,855

Long-term rental agreements 1,768 1,793

Leasing obligations 2,997 1,985

Weleda AG has leasing obligations for computer hardware, vehicles and production machinery.

Fire insurance values for property, plant and equipment 31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Weleda AG, Schwäbisch Gmünd 117,600 118,292

Weleda AG, Arlesheim 55,647 54,301

Liabilities for benefit provisions 31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Pension fund 2,529 5,638

Own shares and non-voting shares 31.12.2012

in 1,000 CHF

31.12.2011

in 1,000 CHF

Stock of own shares (in number: 194, 2011: 304) 459 595

Stock of own non-voting shares (in number: 179, 2011: 197) 214 246

Total own shares and non-voting shares 673 841

82


Annual financial report of Weleda AG

Equity interests

Registered office Function Currency Company

capital

in 1,000

Capital

share

2012

Capital

share

2011

Weleda Benelux SE NL-Zoetermeer Production and trade EUR 2,269 100.0% 100.0%

Weleda Ges.m.b.H. A-Vienna No operative function EUR 36 100.0% 100.0%

Weleda Ges.m.b.H. & Co. KG A-Vienna Trade EUR 1,100 100.0% 100.0%

Weleda Trademark AG CH-Arlesheim Services CHF 1,000 100.0% 100.0%

Weleda Inc. USA-Irvington, NY Trade USD 8,525 100.0% 100.0%

Weleda Italia S.r.l. I-Milan Trade EUR 500 100.0% 100.0%

Weleda Ltda. BRA-São Paulo Production and trade BRL 27,140 100.0% 100.0%

Weleda Naturals GmbH D-Schwäbisch Gmünd Production EUR 25 100.0% 100.0%

Weleda East GmbH RUS-Moscow Trade RUB 10 100.0% 100.0%

Weleda S.A.U. E-Madrid Trade EUR 685 100.0% 100.0%

Weleda (NZ) Ltd NZL-Havelock North Production and trade NZD 169 100.0% 47.3%

Weleda Australia PTY Ltd AUS-Avalon Trade AUD 0 100.0% –

Weleda Ltda. CHL-Santiago de Chile Production and trade CLP 491,321 99.7% 99.7%

Weleda Holding AB S-Järna Holding SEK 12,300 99.4% 99.3%

Weleda spol. s.r.o. CZ-Prague Trade CZK 19,684 99.3% 99.3%

Weleda S.A. ARG-Buenos Aires Production and trade ARS 7,622 95.0% 95.0%

Weleda UK Ltd GB-Ilkeston Production and trade GBP 1,495 94.5% 94.0%

Weleda S.A. F-Huningue Production and trade EUR 3,400 82.7% 82.5%

Weleda (Australasia) Ltd NZL-Havelock North Services NZD 1,139 99.5% 99.5%

Information regarding the carrying out of a risk assessment

In the course of the 2012 financial year, the management of Weleda AG carried out the process to identify and assess material

corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding measures.

Events after the balance sheet date

No events which could have a significant impact on the 2012 financial statements occurred between the balance sheet date and

the Group financial statements being approved by the Board of Directors on April 19 th 2013.

The branch office in Basel was closed with effect on January 16 th 2013.

83


Annual financial report of Weleda AG

Proposed appropriation of the result for the year

Board of Directors' proposed appropriation of the result for the year

in CHF

Profit for 2012 3,153,477.42

Loss brought forward from the previous year –21,661,204.16

Total available to shareholders –18,507,726.74

To be used as follows:

Allocation to reserves 0.00

Distribution of 0% dividend on share capital of CHF 4,750,000.00 0.00

Distribution of 0% dividend on non-voting share capital of CHF 9,500,000.00 0.00

Loss carried forward to new account –18,507,726.74

Dividend

CHF

per share

CHF

per share

CHF

per share

CHF

per non-voting share

Share/non-voting share (nominal) 112.50 125.00 1,000.00 500.00

Annual dividend 0% 0.00 0.00 0.00 0.00

minus 35% Swiss withholding tax 0.00 0.00 0.00 0.00

Net dividend per share/non-voting share 0.00 0.00 0.00 0.00

Weleda AG, Arlesheim, April 19 th 2013

On behalf of the Board of Directors

Paul Mackay, Chairman

Dr Jürg Galliker, Deputy Chairman

84


Annual financial report of Weleda AG

Report of the statutory auditor

to the General Shareholders' Meeting of Weleda AG

Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the accompanying financial

statements of Weleda AG, which comprise the balance sheet,

income statement and notes, pages 76 to 83, for the year ended

December 31 st 2012.

Responsibility of the Board of Directors

The Board of Directors is responsible for the preparation of the

financial statements in accordance with the requirements of

Swiss law and the company's articles of incorporation. This

responsibility includes designing, implementing and maintaining

an internal control system relevant to the preparation of financial

statements that are free from material misstatement, whether

due to fraud or error. The Board of Directors is further responsible

for selecting and applying appropriate accounting policies

and making accounting estimates that are reasonable in the

circumstances.

the internal control system relevant to the entity's preparation of

the consolidated financial statements in order to design audit

procedures that are appropriate in the circumstances, but not for

the purpose of expressing an opinion on the effectiveness of the

entity's internal control system. An audit also includes evaluating

the appropriateness of the accounting policies used and the reasonableness

of accounting estimates made, as well as evaluating

the overall presentation of the financial statements. We believe

that the audit evidence we have obtained is sufficient and appropriate

to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements for the year ended

December 31 st 2012 comply with Swiss law and the company's

articles of incorporation.

Report on other legal requirements

Auditor's responsibility

Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with Swiss law and Swiss Auditing Standards. Those

standards require that we plan and perform the audit to obtain

reasonable assurance whether the financial statements are free

from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor's

judgement, including the assessment of the risks of material misstatement

of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers

We confirm that we meet the legal requirements on licensing

according to the Auditor Oversight Act (AOA) and independence

(article 728 CO) and that there are no circumstances incompatible

with our independence.

In accordance with article 728a paragraph 1 item 3 CO

and Swiss Auditing Standard 890, we confirm that an internal

control system exists which has been designed for the preparation

of financial statements according to the instructions of the

Board of Directors.

We further confirm that the proposed appropriation of

the result available complies with Swiss law and the company's

articles of incorporation. We recommend that the financial statements

submitted to you be approved.

PricewaterhouseCoopers Ltd, Basel, April 19 th 2013

Dr. Rodolfo Gerber, Audit expert /Auditor in Charge

Thomas Strebel, Audit expert

85


Domestic market output

Company information

Domestic market output

per company

Structure of domestic market

output per company

Employees (FTE)

Currency 2012 Increase against

prior year in

local currency

Pharmaceuticals

Natural and

organic

cosmetics

2012 2011

Switzerland in 1,000 CHF 36,878 +0.9% 45% 55% 292 321

Weleda AG, Arlesheim 1 in 1,000 EUR 30,597

Germany in 1,000 EUR 135,143 +3.0% 27% 73% 733 777

Weleda AG, branch office, Schwäbisch Gmünd

France in 1,000 EUR 56,298 +3.2% 40% 60% 335 354

Weleda S.A., Huningue

Netherlands in 1,000 EUR 11,800 –6.9% 20% 80% 75 92

Weleda Benelux SE, Zoetermeer

United Kingdom in 1,000 GBP 5,347 +5.5% 32% 68% 58 71

Weleda UK Ltd, Ilkeston in 1,000 EUR 6,593

Italy in 1,000 EUR 11,166 –5.9% 43% 57% 35 36

Weleda Italia S.r.l., Milan

Austria in 1,000 EUR 10,863 +19.1% 18% 82% 22 32

Weleda Ges.m.b.H. & Co. KG, Vienna

Sweden in 1,000 SEK 41,558 +13.5% 16% 84% 23 26

Weleda Holding AB, Järna in 1,000 EUR 4,775

Spain in 1,000 EUR 5,703 +8.9% 7% 93% 42 38

Weleda S.A.U., Madrid

Czech Republic in 1,000 CZK 30,217 +2.3% 2% 98% 13 11

Weleda spol. s.r.o., Prague in 1,000 EUR 1,202

Russia in 1,000 RUB 71,644 3% 97% 12 0

Weleda East GmbH, Moscow in 1,000 EUR 1,795

USA (North America) in 1,000 USD 14,898 +9.7% 9% 91% 33 37

Weleda Inc., Irvington NY in 1,000 EUR 11,593

Argentina in 1,000 ARS 12,147 +15.0% 51% 49% 44 50

Weleda S.A. Argentina, Buenos Aires in 1,000 EUR 2,081

Brazil in 1,000 BRL 16,717 +14.2% 64% 36% 89 88

Weleda do Brasil Ltda., São Paulo in 1,000 EUR 6,676

Chile in 1,000 CLP 1,380,721 +16.4% 39% 61% 36 35

Weleda Ltda., Santiago de Chile in 1,000 EUR 2,188

New Zealand in 1,000 NZD 3,274 +1.3% 59% 41% 26 35

Weleda (NZ) Ltd, Havelock North in 1,000 EUR 2,063

Australia in 1,000 AUD 1,865 15% 85% 7 0

Weleda Australia PTY Ltd., Avalon in 1,000 EUR 1,503

Weleda Naturals in 1,000 EUR 645 –9.2% 38 38

Weleda Naturals GmbH, Schwäbisch Gmünd

1

Operations Arlesheim and Group functions Basel

86


Addresses

Weleda throughout the world

Switzerland

Weleda AG

Dychweg 14, 4144 Arlesheim, Switzerland

Tel. +41 61 705 21 21, www.weleda.ch, www.weleda.com

Weleda Trademark

Dychweg 14, 4144 Arlesheim, Switzerland

Tel. +41 61 705 20 50

Germany

Weleda AG

Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany

Tel. +49 7171 91 90, www.weleda.de

Weleda Naturals GmbH

Am Pflanzengarten 1, 73527 Schwäbisch Gmünd, Germany

Tel. +49 7171 87 48 80, www.weleda-naturals.de

France

Weleda S.A.

9, rue Eugène Jung, 68331 Huningue Cedex, France

Tel. +33 38 969 68 00, www.weleda.fr

Argentina

Weleda S.A.

Ramallo 2566, C1429DUR Buenos Aires, Argentina

Tel. +54 11 4704 4700, www.weleda.com.ar

Australia

Weleda Australia PTY Ltd

14/13 Avalon Parade, Avalon NSW 2107, Australia

Tel. +61 29 918 09 11, www.weleda.com.au

Austria

Weleda Ges.m.b.H & Co. KG

Hosnedlgasse 27 A, 1220 Vienna, Austria

Tel. +43 1256 60 60, www.weleda.at

Benelux

Weleda Benelux SE

Platinastraat 161, Postbus 733, 2718 SR Zoetermeer, Netherlands

Tel. +31 79 363 13 13, www.weleda.nl and www.weleda.be

Brazil

Weleda do Brasil Laboratório e Farmácia Ltda.

Rua Brigadeiro Henrique Fontenelle 33

CEP 0512500 Parque São Domingos, São Paulo, Brazil

Tel. +55 11 3641 4122, www.weleda.com.br

Chile

Weleda Chile Ltda.

Evaristo Lillo 78, Of. 401

Las Condes, Santiago de Chile, Chile

Tel. +56 02 240 2700, www.weleda.cl

Czech Republic

Weleda spol. s.r.o.

Lidickà 336/28, 150 00 Praha 5, Czech Republic

Tel. +420 25 731 58 88, www.weleda.cz

Italy

Weleda Italia S.r.l.

Via del Ticino 6, 20153 Milano, Italy

Tel. +39 02 487 70 51, www.weleda.it

Japan

Weleda Japan Co., Ltd

Naka-Ku 1-2-23 Nishiki, 460-0003 Nagoya, Japan

Tel. +81 52232 1165, www.weleda.jp

New Zealand

Weleda (NZ) Ltd

302 Te Mata Road, P.O. Box 8132, Havelock North 4157, New Zealand

Tel. +64 6 872 87 00, www.weleda.co.nz

Peru

Weleda del Perú S.A.

Francisco de Zela 2672, Lima 14, Peru

Tel. +51 1 222 27 61, www.weleda.com.pe

Russia

Weleda East GmbH

Rusakovskay 13, BC «Borodino Plaza»

107140 Moscow, Russia

Tel. +7 495 604 15 06, www.weleda-ru.ru

Slovakia

Weleda spol. s.r.o. (branch of Weleda Czech Republic)

Dúbravská cesta č 9, 84104 Bratislava, Slovak Republic

Tel. +421 25 443 39 07, www.weleda.sk

Spain

Weleda S.A.U.

Calle Manuel Tovar 3, 28034 Madrid, Spain

Tel. +34 91 358 03 58, www.weleda.es

Sweden

Weleda AB

Skillebyholm 4, 153 91 Järna, Sweden

Tel. +46 85 229 61 00, www.weleda.se

United Kingdom

Weleda UK Ltd

Heanor Read, Ilkeston, Derbyshire, DE7 8DR, United Kingdom

Tel. +44 11 5944 8222, www.weleda.co.uk

USA

Weleda North America (Weleda, Inc.)

1 Bridge Street, Suite 42, Irvington, NY 10533, USA

Tel. +1 800 241 1030, www.usa.weleda.com

87


Certifications

Certifications of Weleda countries

Switzerland

Weleda AG

Dychweg 14, 4144 Arlesheim, Switzerland

Tel. +41 61 705 21 21, www.weleda.ch

Certified in accordance with ISO 14001

and EMAS Verified Environmental

Management

Germany

Weleda AG

Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany

Tel. +49 7171 91 90, www.weleda.de

Certified in accordance with ISO 14001

and EMAS Verified Environmental

Management, D-135-00032

Weleda Naturals GmbH

Am Pflanzengarten 1, 73527 Schwäbisch Gmünd, Germany

Tel. +49 7171 87 48 80, www.weleda-naturals.de

Certified in accordance with ISO 14001

and EMAS Verified Environmental

Management, D-135-00033

France

Weleda S.A.

9, rue Eugène Jung, 68331 Huningue Cedex, France

Tel. +33 38 969 68 00, www.weleda.fr

Certified in accordance with ISO 14001

Sweden

Weleda AB

Skillebyholm 4, 153 91 Järna, Sweden

Tel. +46 85 229 61 00, www.weleda.se

Certified in accordance with ISO 14001

Italy

Weleda Italia S.r.l.

Via del Ticino 6, 20153 Milan, Italy

Tel. +39 02 487 70 51, www.weleda.it

Certified in accordance with SA8000

(Social Accountability Standard)

88


Global Reporting Initiative

GRI indicators index

Weleda’s corporate responsibility reporting is geared to internationally recognised standards and guidelines (current G3 version of the

Global Reporting Initiative, or GRI). The GRI was started in 1997 by the Coalition of Environmentally Responsible Economies (Ceres) and

the UNEP environment programme; more detailed information can be found on the internet at www.globalreporting.org.

Index Standard disclosures Page

2.1 Name of the organisation Cover

2.2 Primary products and services 10 –17

2.3 Operational structure of the organisation, including main divisions, operating companies,

subsidiaries, and joint ventures

6–8, 72, 83, 86

2.4 Location of the organisation’s headquarters 86, 90

2.5 Countries where the organisation operates 24–31, 72, 83, 86

2.6 Nature of ownership and legal form 8

2.8 Scale of the organisation (number of employees, net sales, total capitalisation) 3, 56–57, 59, 86

2.9 Significant changes in size, structure or ownership 6–8

2.10 Awards received in the reporting period 26–31

3.1–3.4 Reporting profile: reporting period, date of most recent report, reporting cycle,

contact point for questions regarding the report or contents

Cover, 90

3.12 GRI indicators index 89

4.1 Corporate governance 9

4.8 Mission statements, code of conduct and relevant principles (internal) 9, 32–35

4.12 Charters, principles or initiatives (external) 36–41

Economic

EC1 Direct economic value generated and distributed 3, 54

EC8

Development and impact of infrastructure investments and services provided primarily for

public benefit through commercial, in-kind, or pro bono engagements

36–39

Environmental

EN1–EN2 Materials used and recycling 42

EN3 Direct energy consumption 44–45

EN4 Indirect energy consumption 44–45

EN8 Total water withdrawal 43

EN10 Volume of water recycled and re-used 43

EN11–EN12

Location and site of land owned, leased, managed in, or adjacent to, protected areas and

areas of high biodiversity value and impact on biodiversity

40–41

EN14 Strategies, current actions and future plans for managing impacts on biodiversity 40–41

EN16 Greenhouse gas emissions 45

EN22 Total weight of waste by type and disposal method 47

EN26 Initiatives to mitigate environmental impacts of products and services 40–47

Labour practices and decent work

LA1 Total workforce by employment type, contract and region 37

LA13 Employees per category according to gender, age group and other indicators of diversity 37

HR2 Screening on human rights among suppliers and contractors 36, 39

HR6–7 Measures to contribute to the elimination of child and forced labour 36, 39

PR1 Health and safety in respect of products and services 14–23

89


Publication details

The Annual and Sustainability Report 2012 of the Weleda Group and Weleda AG is available in English, German and French.

The German version is binding.

Date of publication

May 10 th 2013

Design

FURORE Visuelle Kommunikation GmbH, Basel, Switzerland

Issued by

Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland

www.weleda.com

Editors

Susi Lotz (project coordination), Frédéric Anklin, Katja Bahrdt, Liliane Fasler,

Birgit Frank, Theo Stepp, Seta Thakur (editorial responsibility)

Collaborators

Holger Biller, Michael Brenner, Markus Helms, Tobias Jakob, Gilles Lematte,

Marcel Locher, Trixie Rauchfuss, Bas Schneiders, Sonja Thiele

Printed by

Saarländische Druckerei &Verlag GmbH, Saarwellingen, Germany

Paper

EnviroTop, 100 % recyclable, FSC®-certified, Der Blaue Engel RAL-UZ 14,

EU Ecolabel, carbon neutral

Art. No. 00085502 (CH), Art. No. 50015100 (D)

Photos

AfriPics, Banco des Bosques, David Broglin, Carmelo Burgaretta, Irmin Eitel,

Maria Claudia Ferreira Freitas Grangeiro, Gaudenz Huggel, Jung von Matt, Alberto

Leonardis, Glenn Macaspac, Ulrike Meyer, Connie Montalvo, Michael Peuckert,

Trixie Rauchfuss, Carrie Ruehlman, Veronika Schulz, Yasuyuki Suzuki, VISCOM

Fotostudio Schwäbisch Gmünd, Weleda photo archive, Weleda North America,

Wellbeing Company, Stuart Wood, Armin Zogbaum

Weleda AG produces its Annual and Sustainability Report on a yearly basis.

The last report produced was the Annual and Sustainability Report 2011 of

Weleda AG and the Weleda Group.

Contact for questions regarding the report:

Seta Thakur, Head Corporate Communications & Sustainability

Tel. direct: +41 61 705 23 46; e-mail: sthakur@weleda.ch

90


www.weleda.com

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