Annual Report 2005 - Walter Meier

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WMH Air Conditioning WMH Air Conditioning: Expectations not quite fulfilled WMH Air Conditioning suffered from the cool summer, which was the main reason why targets in some areas were not met. On the other hand, strong innovations brought good results. In the intensive fight for market shares, WMH Air Conditioning asserted itself well. In the reporting year, WMH Air Conditioning implemented the corporate strategy as planned. Central to this was building up and expanding the three core businesses of the Axair Group. This meant pushing the joint development process in air humidification and extending the range of distribution products in dehumidification. Although the activities with adiabatic humidification systems accelerated, business in the NAFTA market developed slowly. Hard fight for market shares Developments in the markets of WMH Air Conditioning were varied. Whereas the air conditioning market collapsed due to low temperatures in the summer and strong competition from Asia, air humidification fulfilled expectations. Efficiency improvements and price increases largely compensated for the higher raw material prices. The fight for market shares became more intense. With few exceptions, WMH Air Conditioning strengthened its market positions. In some cases that went hand-in-hand with a realignment of the product mix. There was pleasing demand for the gas-turbine cooling products. Axair Kobra technician Pierre-André Rossier tests the Carrier chillers at Manor in Vevey. In all companies, customer requirements were regularly surveyed and met. Training courses and presentations to customers, backed up with visits to suppliers, are just as important a part of customer care as a high level of service. Supply capability and service level were improved further. Products added and brands strengthened In the reporting year, WMH Air Conditioning successfully continued its concentration on strong brands and kept pace with the innovation cycle. The unit air conditioners range was expanded with new units under Axair Air Conditioning’s own brand. Humidification systems were extended into the lower price segment. The Mk5 steam humidifier gained further market shares. The GS range of gas-driven steam humidifiers was consistently strong. The successful eco-efficient Condair Dual 2 air humidifier was relaunched with a new post-evaporation concept. In Germany, the next generation of the service-friendly container system for printing industry customers was introduced. Data basis and processes improved In various areas, WMH Air Conditioning introduced first key performance indicators. These allow the need for managerial intervention to be recognized promptly and corresponding corrective action taken. Parallel, the cross-company organizational development project that has been running for several years was continued as planned. It aims to introduce best practice processes. Human resources highly important Company-specific education programs and external training courses, complemented by a central evaluation system, ensure a high level of competence and satisfied employees. For many years, special attention has been given to apprentice training. Equally important is ongoing education of customers and partners. The Axair Group, for instance, visited suppliers, customers, and trade exhibitions with two Roadshow Mobiles. A tradition has also been established with its “Air Conditioning Forums” in Germany.
New standards for the environment WMH Air Conditioning is represented on the specialist committees for environmentally compliant refrigerants and hygiene in the ventilation and air conditioning area. The main suppliers are trailblazers in researching and applying environmentally friendly refrigerants. WMH Air Conditioning further expanded its leading position in implementing environmentally friendly adiabatic humidification systems. Adiabatic systems demonstrate constant growth rates with a top priority being given to hygiene. In this connection, a company of the Axair Group received an award from the “Printing and Paper” industry association for exemplary hygiene. Minimize risks Risks are continuously monitored, evaluated, and where necessary, eliminated. The pressure on margins in recent years caused individual manufacturers to start, or consider, selling through their own distribution companies. WMH Air Conditioning expanded its service offerings to match this trend. Financial results below expectations On the whole, WMH Air Conditioning performed less well than anticipated. On the one hand, air humidification systems and products for cooling gas turbines surpassed expectations. On the other, air conditioning activities fell short of their targets, mainly due to the low summer temperatures. However, distribution of components for refrigeration, air conditioning, and heat pump systems delivered pleasing results, even if the expectations were not completely fulfilled. Although major orders were received for the gas turbine activities, this business remains volatile. Highly promising orders were also received from the American printing industry for humidification systems. Business development in the NAFTA market will be continued. In fiscal year 2005, sales by WMH Air Conditioning amounted to CHF 231.9 million, which relative to 2004 is a decrease of 1.1%. EBITA at CHF 15.9 million was 13.8% below the previous year. In 2005, intensive foundations were laid for further success. In the UK, for instance, WMH Air Conditioning established itself with humidification activities for the printing industry. Entry into the Chinese and Japanese markets also opens up attractive prospects. New innovations promise success. The sales and marketing companies will strengthen their position with a more clearly defined profile and comprehensive product range. 14 15 WMH Annual Report 2005 Key figures CHF mil. 2002 2003 2004 2005 Net sales 205.0 215.7 234.5 231.9 EBITA 18.4 13.7 18.5 15.9 EBITA margin (%) 9.0 6.4 7.9 6.9 ROA (%) *Incl. goodwill 22.7 15.6 18.8* 16.2* Number of employees 2002 2003 2004 2005 Average 624 663 693 714 Change Y-on-Y (%) 20.2 6.3 4.5 3.0 Net sales 2002– 2005 CHF mil. 02 03 04 05 0 Net sales by geographical segment CHF mil. 25 50 75 100 125 150 175 200 225 250 Switzerland 77.1 (33.2%) Other Europe 115.4 (49.8%) North America 28.1 (12.1%) Other markets 11.3 (4.9%)
Page 1 and 2: WMH Annual Report 2005 Customer Ben
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Page 5 and 6: Chairman’s report It was an inten
Page 7 and 8: Net sales CHF mil. 800 700 600 500
Page 9: Organization Board of Directors Nam
Page 12 and 13: WMH Tools “To provide an optimal
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Page 16 and 17: WMH Air Conditioning “When the in
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Page 24: In the interests of its shareholder
Page 27 and 28: 3. Board of Directors Dr. Reto E. M
Page 29 and 30: 3.3 Cross-involvement There are no
Page 31 and 32: Daniel Maissen, executive member (C
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Page 35 and 36: Addresses WMH Walter Meier Holding
Page 37 and 38: WMH Financial Report 2005 WMH Group
Page 39 and 40: Important dates Annual Shareholders
Page 41 and 42: Information for investors Capital s
Page 43 and 44: WMH Group Consolidated income state
Page 45 and 46: WMH Group Consolidated cash flow st
Page 47 and 48: WMH Group Notes to the financial st
Page 49 and 50: WMH Group Deferred taxes When calcu
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Page 55 and 56: WMH Group Segment information a) By
Page 57 and 58: WMH Group Report of the Group audit
Page 59 and 60: WMH Walter Meier Holding AG Income
Page 61 and 62: WMH Walter Meier Holding AG Notes t
Page 63 and 64: WMH Walter Meier Holding AG Proposa
Page 65 and 66: Addresses WMH Walter Meier Holding

Annual Report 2005 - Walter Meier

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