The Vorwerk Annual Report 2OO8

MANAGEMENT REPORTIn its 125th anniversary year, the family-owned company Vorwerk was once again ableto maintain the growth levels attained in previous years. The business volume, which comprisesturnovers arising from products and services as well as the new business transacted at akf group,achieved a best-ever high level of 2.437 billion euros. The larger divisions contributed particularlyto this 5 per cent increase. Sales of the versatile kitchen appliance Thermomix took first place,again with double-digit growth rates. The international activities in the Kobold vacuum cleanerbusiness as well as the level of new business transacted at akf group also made a considerablecontribution to growth. The increase would have been even greater had it not been for the affectsof the strong euro. Sales at JAFRA Cosmetics in Mexico and the USA appear lower when thebusiness volume of the company is stated in euros, lower than the good performance of the staffand consultants there would justify. Thanks to the overall pleasing development, profit at theVorwerk Group could be upheld. The proportion of partners' equity had increased to 52 per centby the end of 2008 despite the implications of the global financial market crisis. Vorwerk has,therefore, great scope for entrepreneurial manoeuvre.578,000 persons were working for Vorwerk worldwide in 2008, 2.1 per cent more than inprevious year. 556,000 of these people were self-employed direct sales advisers. This means thatas one of the largest direct selling companies in the world, the Vorwerk Group is participatingin the dynamic development of this segment. In this respect Vorwerk is the company where allreputable forms of direct sales are to be found.Vorwerk was able to successfully implement its strategy of continued growth andof providing additional impulses across many areas, particularly in its core direct selling business.Growth drivers at the Vorwerk Group are the deeper penetration of existing and the opening-upof new markets, the targeted development of management staff, quality and innovation in termsof products, services and sales channels as well as the adaptation of the company to the necessitiesof the global economy. The diversified structure in terms of products, sales channels and regionshas proved itself time and again. Vorwerk is divided into nine divisions with subsidiaries in 24countries on four continents. Vorwerk products are available in another 33 countries around theworld through distributors. The dynamic degree of growth was not only accomplished abroad:the German Thermomix sales organisation achieved a high level of expansion as did the8