Group - L. Possehl & Co. mbH

Group - L. Possehl & Co. mbH Group - L. Possehl & Co. mbH

02.12.2012 Views

The number of companies in the Possehl Group in the reporting period was 88, of which 30 are based in Germany and 58 internationally. Following substantial changes to the Group portfolio in the previous year through the acquisition of the Cleaning Machines and Textile Finishing Systems divisions, the segments and divisions remained essentially unchanged during the reporting year. Production The Production segment includes the six divisions: Precious Metals Processing, Electronics, Elastomer Processing, Cleaning Machines, Textile Finishing Systems, and Special-purpose Construction. Precious Metals Processing: Pforzheim-based Heimerle + Meule GmbH is a full-service provider for the recycling of precious metals, especially gold, silver, and platinum. The metals recovered by the recycling process are processed into semi-finished products, salts, and alloys and sold to the jewelry industry, automotive suppliers, the electrical and electronics industry as well as dental companies. Electronics: Possehl Electronics is one of the leading global producers of leadframes for the semiconductor industry. Primarily involved are copper-based, multipin conducting elements that are attached to silicon chips. With its US-based activities, the division is among the most important providers of copper-based plug-in con nectors. The focus of our activities is in Asia – Malaysia, China, and Singapore. Subsidiaries are also maintained in Europe and the USA. Elastomer Processing: Harburg-Freudenberger is the global market leader for tire production systems. The company consists of branches for tire, rubber mixing, and edible oil technologies. Harburg-Freudenberger offers a comprehensive machine program and know-how to the rubber and tire production industry for all essential production stages from raw material preparation to tire manufacturing and vulcanization. The Group currently has two production sites in Germany (Hamburg and Freudenberg) as well as subsidiaries in Croatia, the USA, France, and Russia. The Rubber Mixing Technology unit was also strengthened during the reporting year by the acquisition of Milan-based Pomini Rubber & Plastics S.r.l. Furthermore, with Harburg-Freudenberger Machinery (China) Co. Ltd., a company was established in the important Chinese market. 16 Cleaning Machines: Hako is one of the leading global producers of professional cleaning machines. Its product range covers equipment for cleaning factories and office buildings, external cleaning, and site maintenance as well as multi-purpose special vehicles for use by municipalities. The strengths of the Bad Oldesloe-based company are customized innovative quality products and a closely meshed sales and service network. Hako Group is active on four continents with an emphasis on Europe. Textile Finishing Systems: A. Monforts Textilmaschinen GmbH & Co. KG is a global technology leader for high-end textile finishing systems. The family business, which was founded in 1884, produces textile machines and equipment for the finishing and coating of knitted and woven fabrics. The Monforts Group includes an operating subsidiary in Austria and a joint venture in China in addition to the management company in Mönchengladbach. Special-purpose Construction: The Possehl Spezialbau Group is specialized in the maintenance and improvement of industrial, business, road, and airport surfaces. Through the acquisition in the previous year of DFT Deutsche Flächen-Technik Industrieboden GmbH the Group’s business has expanded to include the manufacturing of large-scale seamless industrial surface systems. Special-purpose Construction is managed by Possehl Spezialbau GmbH from Wiesbaden and has oper ations in the Netherlands, Austria, Slovenia, Croatia, and Belarus. trading This segment includes the international trading operations with raw materials for the fireproof and metallurgical industries and for the chemical, welding electrodes, cement, plastics, and paper industries. Trading activities include the representation of reputable mines and producers as well as open trading. Furthermore, the segment includes upstream and downstream processing, milling, and recycling. Services The segment includes Environmental Protection and Broker Activities. Possehl Environmental Protection is primarily involved with the construction, alteration, extension, and inspection of tanks and the remediation of pollution accidents on streets and waterways. The company also maintains a gravel business. Our two Broker Activities companies conduct brokerage operations. Holding In addition to the parent company L. Possehl & Co. mbH, this segment combines the minority holdings and equity investments as well as intermediate holding companies.

StratEGiC dirECtioN aNd MaNaGEMENt PHiLoSoPHy Possehl aims to grow profitably in all segments on a sustainable basis and to increase the enterprise value. Growth results from both the expansion of existing business and the strategic acquisition of new business units. Along with profitability and a long-term orientation, the diversification of the Group’s portfolio plays an essential role. This reflects the interest of the Possehl-Stiftung as shareholder in the long-term profitable growth of the Group. With its independent and productive business segments, the Group has a solid foundation for continued success. Our management philosophy is aimed at providing the managers of the individual companies with as much operational freedom as possible to develop and implement new ideas. In order to executive this management philosophy successfully and to achieve the Group’s ambitious goals, we require highly motivated and productive employees, who are aware of their contribution to the Group’s success and conduct themselves in a success-oriented, customer-focused manner. Managing directors and managers have a financial stake in the success of the Group or segment through performance-based incentives. 2007 ECoNoMiC ENviroNMENt GROSS DOMESTIC PRODUCT 2007 Real change compared to previous year in % Germany 2.6 Eurozone 2.6 United States of America 2.2 East Asia (without China, India, and Japan) 5.2 China 11.4 Global economy overall 5.1 Source: Kiel Institute for the World Economy – World Economy in Winter 2007 Global Economic development The global economy continued to develop positively during the fiscal year. In 2007, high global economic growth continued at a 5.1 % pace, only slightly lower than in 2006. Despite higher prices in the international energy and raw materials markets, global growth remained robust. However, toward the end of the year the US real estate crisis began to hinder global economic growth. While the economies of developing countries grew at an above-average 6.2 % rate, growth in industrial countries was only 2.4 %. Letter from the Executive Board Company Boards Report of the Controlling Boards Successful over the Long Term Group Management Report Consolidated Financial Statements Further Information Once again the Chinese economy was the driver of growth during the fiscal year. However, other Asian countries as well as Latin America and Central and Eastern Europe produced strong economic growth in 2007. At the same time, growth slowed in the USA. The weak real estate market caused by the subprime mortgage crisis has perceptibly impaired economic growth. The Eurozone continued to develop positively with GDP growth of 2.6 %. Economic growth was also encouraging in Germany, driven mostly by exports. The increase in the external value of the Euro has not materially impaired the growth of the export economy. US dollar Substantially Weaker The US dollar (USD) continued to come under pressure in international currency markets and trust in the US currency steadily declined during the year. The Euro in particular appreciated against the USD during the past 12 months. At the beginning of the year, the Euro was worth approximately USD 1.32. At the end, the rate was USD 1.47. The average over the year was USD 1.37/€, about 10 % below the last year’s rate. US DOLLAR/EURO ExCHANGE RATE IN 2007 (ECB REFERENCE RATE) 1.5 1,5 1.4 1,4 1.3 1,3 1.2 1,2 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 17

The number of companies in the <strong>Possehl</strong> <strong>Group</strong> in the reporting<br />

period was 88, of which 30 are based in Germany and 58 internationally.<br />

Following substantial changes to the <strong>Group</strong> portfolio in the previous<br />

year through the acquisition of the Cleaning Machines and Textile<br />

Finishing Systems divisions, the segments and divisions remained<br />

essentially unchanged during the reporting year.<br />

Production<br />

The Production segment includes the six divisions: Precious Metals<br />

Processing, Electronics, Elastomer Processing, Cleaning Machines,<br />

Textile Finishing Systems, and Special-purpose <strong>Co</strong>nstruction.<br />

Precious Metals Processing: Pforzheim-based Heimerle + Meule<br />

G<strong>mbH</strong> is a full-service provider for the recycling of precious metals,<br />

especially gold, silver, and platinum. The metals recovered by the<br />

recycling process are processed into semi-finished products, salts,<br />

and alloys and sold to the jewelry industry, automotive suppliers, the<br />

electrical and electronics industry as well as dental companies.<br />

Electronics: <strong>Possehl</strong> Electronics is one of the leading global<br />

producers of leadframes for the semiconductor industry. Primarily<br />

involved are copper-based, multipin conducting elements that are<br />

attached to silicon chips. With its US-based activities, the division<br />

is among the most important providers of copper-based plug-in<br />

con nectors. The focus of our activities is in Asia – Malaysia, China,<br />

and Singapore. Subsidiaries are also maintained in Europe and<br />

the USA.<br />

Elastomer Processing: Harburg-Freudenberger is the global<br />

market leader for tire production systems. The company consists<br />

of branches for tire, rubber mixing, and edible oil technologies.<br />

Harburg-Freudenberger offers a comprehensive machine program and<br />

know-how to the rubber and tire production industry for all essential<br />

production stages from raw material preparation to tire manufacturing<br />

and vulcanization. The <strong>Group</strong> currently has two production sites<br />

in Germany (Hamburg and Freudenberg) as well as subsidiaries in<br />

Croatia, the USA, France, and Russia. The Rubber Mixing Technology<br />

unit was also strengthened during the reporting year by the acquisition<br />

of Milan-based Pomini Rubber & Plastics S.r.l. Furthermore, with<br />

Harburg-Freudenberger Machinery (China) <strong>Co</strong>. Ltd., a company was<br />

established in the important Chinese market.<br />

16<br />

Cleaning Machines: Hako is one of the leading global producers<br />

of professional cleaning machines. Its product range covers equipment<br />

for cleaning factories and office buildings, external cleaning, and<br />

site maintenance as well as multi-purpose special vehicles for use by<br />

municipalities. The strengths of the Bad Oldesloe-based company are<br />

customized innovative quality products and a closely meshed sales<br />

and service network. Hako <strong>Group</strong> is active on four continents with an<br />

emphasis on Europe.<br />

Textile Finishing Systems: A. Monforts Textilmaschinen G<strong>mbH</strong><br />

& <strong>Co</strong>. KG is a global technology leader for high-end textile finishing<br />

systems. The family business, which was founded in 1884, produces<br />

textile machines and equipment for the finishing and coating of knitted<br />

and woven fabrics. The Monforts <strong>Group</strong> includes an operating subsidiary<br />

in Austria and a joint venture in China in addition to the<br />

management company in Mönchengladbach.<br />

Special-purpose <strong>Co</strong>nstruction: The <strong>Possehl</strong> Spezialbau <strong>Group</strong><br />

is specialized in the maintenance and improvement of industrial,<br />

business, road, and airport surfaces. Through the acquisition in the<br />

previous year of DFT Deutsche Flächen-Technik Industrieboden G<strong>mbH</strong><br />

the <strong>Group</strong>’s business has expanded to include the manufacturing<br />

of large-scale seamless industrial surface systems. Special-purpose<br />

<strong>Co</strong>nstruction is managed by <strong>Possehl</strong> Spezialbau G<strong>mbH</strong> from Wiesbaden<br />

and has oper ations in the Netherlands, Austria, Slovenia, Croatia, and<br />

Belarus.<br />

trading<br />

This segment includes the international trading operations with<br />

raw materials for the fireproof and metallurgical industries and for the<br />

chemical, welding electrodes, cement, plastics, and paper industries.<br />

Trading activities include the representation of reputable mines and<br />

producers as well as open trading. Furthermore, the segment includes<br />

upstream and downstream processing, milling, and recycling.<br />

Services<br />

The segment includes Environmental Protection and Broker<br />

Activities. <strong>Possehl</strong> Environmental Protection is primarily involved with<br />

the construction, alteration, extension, and inspection of tanks and<br />

the remediation of pollution accidents on streets and waterways. The<br />

company also maintains a gravel business. Our two Broker Activities<br />

companies conduct brokerage operations.<br />

Holding<br />

In addition to the parent company L. <strong>Possehl</strong> & <strong>Co</strong>. <strong>mbH</strong>, this<br />

segment combines the minority holdings and equity investments as<br />

well as intermediate holding companies.

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