Annual Report 2010 - Frauenthal Holding AG

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52 Annual Report 2010 Operating Review European demand for heavy goods vehicles in 2010 varied widely from region to region. Sales were up by 21.4 % in Germany – the largest EU market and the main growth driver. Demand jumped by 5 % in the United Kingdom, but only edged up in Italy and Spain. Registrations were up by 8.4 % across the EU as a whole, lifted by the pickup in freight volumes – particularly in the long-haul segment, which is closely linked with industrial output. Rising haulage rates have also helped strengthen the finances of the hard-hit transport sector. Low interest rates and manufacturers’ discounts were a further incentive to invest. The improvement was not felt until the end of the second quarter, but has steadily accelerated since then. As it likely that there is still an investment backlog, moderate growth in European demand for new vehicles is likely to continue in 2011. The overall EU commercial vehicle market expanded by 8 %, with the light vehicles segment (up by 8.7 %) driving growth. Production and revenue in the Automotive Components Division tracked the normalisation of inventories of unsold vehicles in the first half of 2010. Following dramatic inventory run-downs in 2009 European manufacturers started to replenish their stocks as they geared up for recovery. It was only towards the end of the second quarter that production and demand came back into balance. Vehicle exports bounced back by well over 50 %, following the almost complete collapse of deliveries to CEE and Russia in 2009. The Industrial Honeycombs Division put in another strong performance in 2010, doing particularly well from the recovery of the commercial vehicle market. Revenue from diesel catalyst sales soared by 174 %, playing a key role in the significant improvement in divisional earnings. The power station catalyst business is driven by environmental regulation and energy demand. Replacement parts, which already account for about 20 % of sales in this product group – the division’s main line of business – are growing in importance. Revenue grew by 13 % to EUR 79.4m, and capacity was fully utilised. Demand for power station catalysts was consistently strong, with new projects in Europe and replacement orders from the USA especially buoyant. Chinese business again made a major revenue contribution, accounting for 35 % of the total. However, order intake from China slipped sharply owing to persistent uncertainty about future environmental legislation. The plate catalyst plant was commissioned at the start of the year. The first step for this technology, which is new the division’s range, was a trial installation at a client’s facility. The usual long project lead times meant that the first contracts for the product were not won until near the end of the year. The main factors that influence the performance of our Wholesale Plumbing Supplies Division (SHT) are construction activity in Austria, and the willingness of private households to invest in renovation, and renewing plumbing and heating systems. In 2010 the division once more overcame a flat market, to register respectable growth of 3.5 %. This again chiefly reflected robust private renovation demand, while sales slumped in the fiercely competitive contract business fell sharply as commercial building shrank for the third year in a row. There were no signs of an upswing in public sector orders. The integrated service, logistics and sales centre opened in Innsbruck in mid-2010 has boosted SHT’s market share in western Austria, where it is still underrepresented. The improvement in the division’s results was almost exclusively attributable to volume growth, and with no let-up in fierce price competition gross margins were unchanged from 2009. Changes in liquidity Despite the 18.7 % growth in revenue liquidity needs were no higher at year end. Net borrowings including the bond were down by EUR 2.2m at the end of reporting period. The strong operating profit before working capital changes of EUR 29.2m compensated for the increase in working capital caused by higher output. As consolidation was our overriding objective in the year under review investment dropped sharply to EUR 9.3m. No dividend was paid in 2010. We continued to widen our banking relationships and found new financiers abroad. At year end unused credit lines totalled EUR 94.3m. Finance costs decreased because of low interest rates.
taSk Monika Burian, 46, sorting fi lter bodies after fi ring. Once she has packed the products the delivery pallets go to the dispatch department. produCt The Porzellanfabrik Frauenthal factory (Industrial Honeycombs Division) makes casting fi lters, as well as power station and diesel catalysts, and heat sinks. Casting fi lters are used in foundries to produce high-quality light alloy, iron and spheroidal castings. 53
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 and 46: SHT Haustechnik AG is Austria’s l
Page 47 and 48: positions. This is particularly cru
Page 49 and 50: operating revieW Operating Review 4
Page 51: Business performance All three divi
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
Page 99 and 100: The following companies are fully c
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Consolidated Financial Statements F
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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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