Annual Report 2010 - Frauenthal Holding AG

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46 Annual Report 2010 Strength through diversity industrial honeycombs in 2010 Porzellanfabrik Frauenthal again enjoyed healthy growth and improved its earnings by 70 %. What are the factors contributing to this success? Führer1 : In 2010 we had a very satisfactory year. Earnings rose more sharply than revenue mainly because of the 174 % growth in sales of diesel catalysts. The power station catalyst business was also excellent in all regions. We have won large orders for new projects both in Europe and in the USA. In addition to which, replacement business already constitutes around 50 % of the power station catalyst business. This is very satisfactory, because it makes us less dependent on volatile new project business. Heat exchangers also began to recover from the effects of the crisis. We are starting the new business year with an outstanding order book for power station catalysts and excellent market prospects for Euro 5 diesel catalysts. China is a market with great potential – how do you see the situation developing? Führer: In 2010 roughly 35 % of our power station business was with China, which is satisfactory. We did however register a significant decline in new orders from China in the second half of 2010. This is the result of Chinese energy policies, which still do not make the use of SCR catalysts mandatory. It may be that the new five-year plan will throw some light on future developments. For the foreseeable future electricity consumption in China will grow by some 10 % annually, and the additional requirements will largely „for the foreseeable future electricity consumption in China will grow by some 10 % annually“ be supplied by coal-fired power stations. Sooner or later China will have to invest seriously in air quality. We shall be stepping up our involvement in this difficult but potentially most important market of the future. Mr Zhu, you joined Porzellanfabrik Frauenthal’s executive Board as of 1 January 2011. What are the goals you have set yourself? Zhu2 : I should like to help Porzellanfabrik Frauenthal realise its growth potential. As a German citizen born in China, 1) Managing Director of Porzellanfabrik Frauenthal GmbH 2) Managing Director of Porzellanfabrik Frauenthal GmbH since 1.1.2011 3) Member of the Frauenthal Holding AG Executive Board responsible for the Industrial Honeycombs Division I am familiar with the market environment in Asia, and in particular in China, and I understand the difficulties European businesses experience in breaking into these markets and capturing the potential. I intend to put my many years of experience in the automobile industry to good use and continue to expand the sales network for industrial honeycombs. Our products are technically very sophisticated, and in China that is the best entrée to the market. environmental legislation is on the advance around the world. Where are the growth opportunities for Frauenthal? Sailer3 : There are growth opportunities in the markets for both stationary and mobile honeycombs, and both in our traditional markets and in new ones. The Euro 5 standard is being introduced in Brazil for commercial vehicles in 2012. In the USA we have excellent market opportunities for our large-volume catalysts in the offroad segment, i.e., construction and agricultural machinery. For ships, we can expect a worldwide emission standard in a few years’ time. This application of SCR technology „We are one of only two manufacturers worldwide to offer all types of stationary and mobile catalysts.“ is very similar to its use in small power stations, and our extensive engineering know-how means that we are especially well placed to supply the market. Our revenue in this area in 2010 was already EUR 700t. But the immediate growth potential is for a product that is a new one for us, the plate catalyst. As we expected, getting the initial orders was not easy, even though customers’ endurance tests confirmed the technical excellence of the product. But now we have landed our first major orders. This type of catalyst is best suited to power stations fired with high-ash coal. We are one of only two manufacturers worldwide to offer all types of stationary and mobile catalysts. With all these market opportunities, where are you going to put the emphasis? Führer: We must first consolidate our existing market
positions. This is particularly crucial for the commercial vehicle business in Europe, where we have technically excellent products that comply with the soon to be introduced Euro 6 emission standard. There are alternative product technologies, however, and there is a definite tendency for customers to prefer complete systems suppliers, from whom they can buy complete exhaust treatment modules including oxidation catalysts and particulate filters. We can only meet these requirements in partnership with other manufacturers. One of our main focuses is on our positioning with respect to the procurement decisions of commercial vehicle manufacturers, which will be taken in 2011. in 2010 Porzellanfabrik Frauenthal generated the largest contribution to the earnings of Frauenthal group. how important is this division to the group? Sailer: The success of industrial honeycombs means that Frauenthal Group can rely on three independent, equally important businesses. The importance of this Division, however, is its potential for dynamic growth. Our growth strategy includes the further expansion of capacity at the Frauenthal site in Styria and a significant build-up of management resources at all levels, including executive management, development, and sales and services. There are however at the moment no plans for another production facility. Since 2010 plate catalysts were produced in Frauental which opened up new market potential. Chaohong Zhu, Karl Führer, Martin Sailer 47
Page 1 and 2: ANNUAL REPORT 2010 Strength through
Page 3 and 4: CONSOLIDATION AND SOLID EARNINGS PE
Page 5 and 6: JuMp in earningS at induStrial hone
Page 7 and 8: taSk Franz Haring, 47, testing and
Page 9 and 10: Senior leadership team (Slt) The se
Page 11 and 12: CORPORATE GOVERNANCE Corporate gove
Page 13 and 14: volume in the automotive Components
Page 15 and 16: in 2012, and we’re confident that
Page 17 and 18: produCt SHT now operates six logist
Page 19 and 20: CorPorate governanCe PoliCy Frauent
Page 21 and 22: Honeycombs Division). He is also a
Page 23 and 24: indePendenCe oF the SuPerviSory Boa
Page 25 and 26: Governance, and monitored by the au
Page 27 and 28: ut the market still has much ground
Page 29 and 30: key Share ratioS Investor Relations
Page 31 and 32: Strength through diverSitY
Page 33 and 34: in Toruń, Poland, from Necks Inves
Page 35 and 36: 8 1 2 3 4 5 6 7 Linnemann-Schnetzer
Page 37 and 38: „in the frauenthal group, pioneer
Page 39 and 40: solid stabilisers, but up to 15kg l
Page 41 and 42: FaC has developed a new strategy -
Page 43 and 44: taSk Bernd Eichelberger, 49, Lothar
Page 45: SHT Haustechnik AG is Austria’s l
Page 49 and 50: operating revieW Operating Review 4
Page 51 and 52: Business performance All three divi
Page 53 and 54: taSk Monika Burian, 46, sorting fi
Page 55 and 56: evenue by geographical markets Prof
Page 57 and 58: 2010 2009 aSSetS EUR ’000 EUR ’
Page 59 and 60: Shareholder value Operating Review
Page 61 and 62: produCt SHT Haustechnik AG has six
Page 63 and 64: eference entity. This indicator imp
Page 65 and 66: Market riSk Economic conditions in
Page 67 and 68: In 2010 the impairment review resul
Page 69 and 70: indicator system supports internal
Page 71 and 72: at all stages of the goods flow. Th
Page 73 and 74: Die HR development is crucial to th
Page 75 and 76: In the power station catalyst busin
Page 77 and 78: ConSolidated finanCial StateMentS C
Page 79 and 80: Note 9,27 16 18 19 16 Consolidated
Page 81 and 82: Note 19 19 19 7,19 19 19 13,20,22 2
Page 83 and 84: Statement of changes in equity tota
Page 85 and 86: ChangeS in Carrying valueS Carrying
Page 87 and 88: ChangeS in Carrying valueS Carrying
Page 89 and 90: Automotive Components Wholesale Plu
Page 91 and 92: new interpretations 1) Consolidated
Page 93 and 94: Consolidated Financial Statements F
Page 95 and 96: IFRIC 19 Extinguishing Financial Li
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Consolidated Financial Statements F
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The following companies are fully c
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[21] Short-term provisions Changes
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Liabilities at 31 Dec. 2009 in EUR
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Sundry other income Consolidated Fi
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Change in deferred tax Consolidated
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e. StateMent oF CaSh FloWS Consolid
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EUR ’000 Consolidated Financial S
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2000 1800 1600 1400 1200 1000 800 6
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Liabilities EUR ’000 non-current
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opinion on the group operating revi
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CoMpanY finanCial StateMentS
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taSk Kamel Navarro, 31, aligning pa
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income statement Company Financial
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gloSSarY
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p.a. Poa PoC PoFa Pln reg. no. roCe
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Frauenthal Liegenschaftsverwaltung
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impressum Financial calender 2011 1
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Annual Report 2010 - Frauenthal Holding AG

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