Annual Report 2010 - Frauenthal Holding AG

132 Annual Report 2010
Consolidated Financial Statements Frauenthal Holding Group 2010
F. SuPPleMentary inForMation
[42] Segmental analysis
The Frauenthal Group’s primary segments are the Automotive Components, Wholesale Plumbing Supplies and Industrial
Honeycombs divisions. The classification is on the basis of the differences between the products and services produced and
distributed by the various segments.
The Automotive Components Division supplies components to manufacturers of commercial vehicles and trailer axles. The
product range comprises leaf springs, links, stabilisers and air reservoirs for braking systems, as well as U-bolts. The division
has production sites in Austria, France, Germany, Poland, Portugal, Romania and Slovenia.
The Wholesale Plumbing Supplies Division distributes leading sanitary, heating and other plumbing brands, as well as its own
Prisma and SaniMeister brands in Austria.
The core business of the Industrial Honeycombs Division is the production and distribution of SCR catalysts for flue gas
purification, and of non-catalytic honeycomb products. In 2009 the production and distribution of SCR diesel catalysts was
transferred to the Industrial Honeycombs Division. The production location is in Frauental, Austria. Sales companies in Kansas,
USA and Seoul, South Korea, and a representative office in Beijing, China are responsible for distribution on the American
and Asian markets.
Intersegment revenues chiefly concern management services by and overhead contributions to the holding companies; these
are charged according to fixed hourly rates or on a cost-plus basis.
Detailed segmental reporting disclosures are shown in a separate summary table. In the “Revenues by geographical areas
(final customers)” table, revenues are allocated according to the locations to which the invoices were issued. The revenue
disclosures in this table are in accordance with paragraph 32 IFRS 8.
[43] Financial instruments
The Frauenthal Group holds underlying financial instruments including financial assets such as securities, trade receivables
(underlying transactions), bank balances, short and long-term borrowings, and trade payables. The holdings of underlying
financial instruments are disclosed in the consolidated statement of financial position.
Objectives of capital management
The Group’s capital management policies are aimed at safeguarding its ability to continue as a going concern and maintaining
a sufficient equity ratio for the industries in which it operates, i.e. about 30 % (on the basis of the IFRS consolidated financial
statements). Frauenthal aims for high growth, and this is reflected in its corporate strategy. Our dividend policy is primarily
designed to ensure that sufficient resources are available to fund growth.
Net gearing – the ratio of risk exposure (net debt) to capital – fell from 134.74 % to 105.44 % in 2010, due to the turnaround
of the Automotive Components Division, and the increased profits of the other two divisions. Net interest bearing debt is the
balance of interest bearing assets and liabilities. Total equity is accounting equity plus minority interests.