Group - L. Possehl & Co. mbH
Group - L. Possehl & Co. mbH Group - L. Possehl & Co. mbH
Letter from the Executive Board 2 Dear Busines Partners, Dear Readers, The Possehl Group remained on a successful path in 2007. The result from ordinary operations reached € 75.3 million. We were thus able to expand on the previous year’s results for the fourth time in a row. It is also the best result achieved thus far in the history of our company. Each of the divisions provided positive contributions to results. Almost all of the divisions were able to increase their earnings compared to the previous year. While the earnings of the Electronics division – which continues to be our largest performance pillar – declined, it was still able to maintain an overall high level. Five of the seven divisions were able to achieve historic best marks in performance. Net sales of the group of companies increased during the fiscal year from e 1.452 billion to e 1.522 billion. The Cleaning Machines, International Trading and Special-purpose Construction divisions experienced the greatest organic growth. Sales in the Elastomer Technology division increased in part due to the initial consolidation of an acquisition. The Electronics division reported a decline in sales as a result of the weak US dollar. We used the past year to completely abolish our net financial liabilities by e 122.9 million, and now report a positive value of e 6.1 million in the balance sheet. This leaves the Possehl Group completely debt-free. With respect to new acquisitions, we decided to take a little break in 2007. Following two extremely acquisition-rich years, we limited our activities to two compact transactions last year. In the Elastomer Technology division, we implemented a supplementary acquisition by purchasing the “Rubber & Plastics” unit of the Italian company Techint in April 2007, which strengthens our successful Mixing Technology division of subsidiary Harburg-Freudenberger Maschinenbau GmbH. The newly integrated unit already provided gratifying contributions to sales and results in 2007 and thus affirmed itself as a successful acquisition at an early stage. As of October 1, 2007, we increased our interest in the Hako Group, located in Bad Oldesloe, to 100 %, after previously holding a 56 % interest acquired in two stages in 2004 and 2006. We were thus able to successfully complete the acquisition process scheduled jointly with the former owners.
Uwe Lüders, Born 1952, Dipl.-Volkswirt (degree in economics), Chairman of the Executive Board since April 2004. Previous management experience in successful diversified groups with a focus on mechanical and systems engineering. Most recently Chairman of the Management Board of Buderus AG in Wetzlar Our focus in 2007 was on the consolidation of the companies acquired during the two previous years. By implementing efficiency and structural improvement measures, we were able to strengthen the divisions from within. The required restructuring expense of approximately e 10 million has already been accounted for in the fiscal year 2007 result. By introducing and implementing these measures, we have created the preconditions necessary for the respective divisions to continue to achieve positive results even in the event of a possible weakening of economic activity and a deterioration of general conditions. We are confident that we can continue on our successful course into the year 2008 as well. We want to profitably grow and – whenever suitable opportunities arise – make additional acquisitions. The M&A market for medium-sized companies was highly competitive last year. In a number of cases, company purchase prices were paid that to us were not economically justifiable. However, we continue to adhere to our strategic orientation as a long-term and reliable new owner for medium-sized companies. Our newly improved and overall extremely solid equity base and financial position form a secure foundation for our goal of consistently continuing to pursue and implement our growth strategy. Of course we also see certain risks, such as in the lingering uncertainty as to the outcome of the US loan crisis and further development of the US dollar exchange rate. There are also uncertainties with respect to an implied economic weakening in the various marketing areas in which Possehl subsidiaries are operating. However, based on our diversified position as a medium-sized conglomerate, we have the necessary balance, stability and capital power to successfully realize our objectives. Yours sincerely, Uwe Lüders Norbert Scheuch Norbert Scheuch, Born 1960, Dipl.-Kaufmann (degree in business studies), member of the Executive Board since April 2007. Previously Managing Director of Schmidt Holding GmbH in St. Blasien, a leading global manufacturer of specialized vehicles 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 3
- Page 1 and 2: Annual Report 2007 Successful over
- Page 3 and 4: Possehl - the Entrepreneurs’ Gr C
- Page 5: Table of Contents Letter from the E
- Page 9 and 10: dr. Lutz Peters Letter from the Exe
- Page 11 and 12: All of this is essential for the su
- Page 13 and 14: The organizational structure of Pos
- Page 15 and 16: Possehl initially becomes deeply in
- Page 17 and 18: Possehl views each of its companies
- Page 19 and 20: ovErviEW of tHE ECoNoMiC CoNditioN
- Page 21 and 22: StratEGiC dirECtioN aNd MaNaGEMENt
- Page 23 and 24: The increase in net sales came prim
- Page 25 and 26: Cleaning Machines: Significant Grow
- Page 27 and 28: BALANCE SHEET STRUCTURE Fixed asset
- Page 29 and 30: Letter from the Executive Board Com
- Page 31 and 32: The regular reporting is supplement
- Page 33 and 34: EPort oN SUBSEqUENt EvENtS, oPPortU
- Page 35 and 36: Consolidated Balance Sheet as of De
- Page 37 and 38: Consolidated Cash flow Statement fr
- Page 39 and 40: Cumulative 01/01/2007 Exchange rate
- Page 41 and 42: Group shareholders’ equity withou
- Page 43 and 44: Equity is consolidated under the eq
- Page 45 and 46: The biometric data underlying the m
- Page 47 and 48: As per the balance sheet date, the
- Page 49 and 50: NotES to tHE CoNSoLidatEd iNCoME St
- Page 51 and 52: NotES to tHE CoNSoLidatEd CaSH fLoW
- Page 53 and 54: auditors’ report * We have audite
- Page 55 and 56: Name Registered in Letter from the
Uwe Lüders,<br />
Born 1952, Dipl.-Volkswirt (degree in<br />
economics), Chairman of the Executive<br />
Board since April 2004. Previous<br />
management experience in successful<br />
diversified groups with a focus on<br />
mechanical and systems engineering.<br />
Most recently Chairman of the Management<br />
Board of Buderus AG in Wetzlar<br />
Our focus in 2007 was on the consolidation of the companies acquired during the two previous<br />
years. By implementing efficiency and structural improvement measures, we were able to strengthen the divisions<br />
from within. The required restructuring expense of approximately e 10 million has already been accounted for in the<br />
fiscal year 2007 result. By introducing and implementing these measures, we have created the preconditions necessary<br />
for the respective divisions to continue to achieve positive results even in the event of a possible weakening of<br />
economic activity and a deterioration of general conditions.<br />
We are confident that we can continue on our successful course into the year 2008 as well. We<br />
want to profitably grow and – whenever suitable opportunities arise – make additional acquisitions. The M&A market for<br />
medium-sized companies was highly competitive last year. In a number of cases, company purchase prices were paid that<br />
to us were not economically justifiable. However, we continue to adhere to our strategic orientation as a long-term and<br />
reliable new owner for medium-sized companies. Our newly improved and overall extremely solid equity base and<br />
financial position form a secure foundation for our goal of consistently continuing to pursue and implement our growth<br />
strategy.<br />
Of course we also see certain risks, such as in the lingering uncertainty as to the outcome of the US loan crisis and further<br />
development of the US dollar exchange rate. There are also uncertainties with respect to an implied economic weakening<br />
in the various marketing areas in which <strong>Possehl</strong> subsidiaries are operating. However, based on our diversified position<br />
as a medium-sized conglomerate, we have the necessary balance, stability and capital power to successfully realize our<br />
objectives.<br />
Yours sincerely,<br />
Uwe Lüders Norbert Scheuch<br />
Norbert Scheuch,<br />
Born 1960, Dipl.-Kaufmann (degree in<br />
business studies), member of the<br />
Executive Board since April 2007.<br />
Previously Managing Director of Schmidt<br />
Holding G<strong>mbH</strong> in St. Blasien, a leading<br />
global manufacturer of specialized<br />
vehicles<br />
Letter from the Executive Board<br />
<strong>Co</strong>mpany Boards<br />
Report of the <strong>Co</strong>ntrolling Boards<br />
Successful over the Long Term<br />
<strong>Group</strong> Management Report<br />
<strong>Co</strong>nsolidated Financial Statements<br />
Further Information<br />
3
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