The good prospects are based on the all-embracing ... - ALNO AG

24 sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
sinGLE-Entity and
GRoup manaGEmEnt REpoRt
of alNo aKTIeNGesellsChafT, PfulleNdorf,
for <strong>The</strong> fINaNCIal Year 2011
Economic report
I. GrouP sTruCTure aNd BusINess
<strong>The</strong> ALNO Group develops, builds and sells kitchen furni-
ture and accessories for the German market and for export
worldwide. <strong>The</strong> p<strong>are</strong>nt company ALNO AG, Pfullendorf,
acts as holding company with central administration func-
tions and operates the production facility in Pfullendorf, as
well as the sales division. <strong>The</strong> ALNO Group comprises 16
active individual companies altogether. In July 2011, the
company's headquarters moved from Düsseldorf to the
former location in Pfullendorf (Baden-Württemberg).
Since the ALNO Group unites four different brands under
a single umbrella, the Group can cover all price segments
from the entry level to the premium level. With its brands
ALNO, WELLMANN, IMPULS and PINO, the Group is one
of the biggest manufacturers of kitchen furniture worldwide.
<strong>The</strong> ALNO Group is currently the second largest manufacturer
in Germany and ranks fifth in Europe.
Each of the four German production facilities has its own
product portfolio. Kitchens for the ALNO brand <strong>are</strong> developed
and built in Pfullendorf, while the plant in Enger,
North Rhine-Westphalia, produces the WELLMANN range.
<strong>The</strong> IMPULS and PINO brands <strong>are</strong> produced in Brilon
(North Rhine-Westphalia) and Coswig (Sachsen-Anhalt),
respectively.
Germany and Western Europe <strong>are</strong> the most important
sales markets for the ALNO Group. However, the company
also has more than 6,000 trade partners in 64 countries
who <strong>are</strong> served through a centrally managed export sales
department. In the United Kingdom and Switzerland,
the ALNO Group has own marketing companies which
<strong>are</strong> combined under the subsidiary ALNO International
GmbH with head office in Pfullendorf. <strong>The</strong> ALNO Group is
becoming more important in Asia, the United States and
the United Arab Emirates. After the end of the period under
review, ALNO AG founded its own US marketing company
<strong>based</strong> in New York.
In spring 2011, it was decided to close the foreign subsidiary
ALNO France S.A.R.L. in Cagnes-sur-Mer, France. In
November 2011, EuroSet Küchentechnik GmbH with its
base in Enger was renamed ALNO Trading GmbH, also
<strong>based</strong> in Enger. <strong>The</strong> company trades in and sells household
appliances, fitted appliances, accessories and merchandise,
but no kitchen furniture.
<strong>The</strong> Dubai location specializes on project business in the
Gulf region, for which it builds and sells kitchen furniture to
regional specifications. 50% of the sh<strong>are</strong>s in the regional
company ALNO Middle East FZCO, Dubai, United Arab
Emirates, <strong>are</strong> held by ALNO AG, and the other 50% by Al
Khayyat Investments LLC, Dubai, United Arab emirates.
II. GrouP MaNaGeMeNT
<strong>The</strong> Group's business activities <strong>are</strong> measured on the basis
of sales and value metrics. Within the year, the individual
Group entities <strong>are</strong> managed on a monthly basis, but also
on a weekly and daily basis, through continual variance
analyses to determine any divergence from budgeted figures
and previous year's values in all key operational <strong>are</strong>as.
In addition to ratios measuring the efficiency of sales, production,
quality and specific functions, the most important
individual indicators used at the segment level include
contribution accounting, unit performance accounting and
sales figures expressed in numbers of cabinet units. Cost
centres and cost categories <strong>are</strong> monitored and analysed
separately at a higher level of aggregation. <strong>The</strong> quality of
the product range and business processes is monitored
and assured by quality management <strong>based</strong> on DIN EN ISO
9001. All production companies in the ALNO Group <strong>are</strong>
certified companies subject to continuous external auditing
by various institutes.