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Annual and Sustainability Report 2014 The Weleda Group and Weleda AG
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Brief profile
Brief profile
Weleda is the world’s leading manufacturer of certified natural and organic cosmetics and anthroposophic pharmaceuticals. Its products provide people with healing impulses and convey well-being and vitality. Its portfolio comprises more than 1,000 pharmaceuticals and a variety of extemporaneous pharmaceutical preparations, as well as 120 natural and organic cosmetics. The Swiss stock corporation is headquartered in Arlesheim near Basel (Switzerland) and has a branch office in Schwäbisch Gmünd (Germany). In addition, Weleda has 19 majority shareholdings in 17 countries and employs a workforce of approximately 2,0001 people worldwide. The company is represented through its products in over 50 countries across all continents. Since it was founded in 1921, Weleda has placed great importance on social, environmental and economic responsibility.
Group structure and shareholders Around 40 per cent of the capital and approximately 80 per cent of the voting rights of Weleda AG are held by two main shareholders: the General Anthroposophical Society (AAG, Dornach, Switzerland) and Klinik Arlesheim (KA, Arlesheim, Switzerland), previously the Ita Wegman Klinik AG. The remaining registered shares and non-voting shares are publicly floated. Only members of the AAG are entitled to entry in the share register.
Capital structure of Weleda AG2
Nominal capital in CHF 3,478,000
Nominal registered shares CHF 1,000
3,478
Nominal registered shares CHF 112.50
6,880
774,000
Nominal registered shares CHF 125
3,984
498,000
Nominal non-voting shares CHF 500
19,000
Total nominal capital 1
Number
9,500,000 14,250,000
Calculated on a full-time equivalent basis
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The share capital is fully paid. As of December 31st 2014, there is neither authorised nor conditional share capital. Every registered share has a single vote in the General Shareholders’ Meeting.
Front page: Dr Meike Wenk at her work station.
Contents
2 Brief profile
At a glance 4 The 2014 financial year 4 Value-added statement
6 Editorial letter from the Chairman of the Board of Directors 7 Report from the CEO
Organisation and management 8 Continuous improvement based on a stable structure
14 DR MEIKE WENK
11 Sustainability strategy 12 Goals and measures of Weleda’s sustainability strategy
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Environment 15 For the future of our environment 18 Water 19 Energy 20 Packaging 21 Waste 22 Environmental sustainability tables
Social 25 Living up to values and shaping the future 28 Sandalwood raw materials project 29 Social sustainability tables
ANNETTE PIPERIDIS
30 FRANÇOISE KESSLER
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Economy 31 Sustainable business 32 Value-added statement 33 Corporate governance 35 Weleda pharmaceuticals 39 Weleda natural and organic cosmetics 42 Our markets 47 Third-party turnover of national companies 49 Financial report
Annual Financial Report 2014 53 Weleda Group 73 Weleda AG
DR CHRISTIAN BIRRINGER
38 DR LUCIE BAUERSCHAPER
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84 Certifications 85 GRI indicators index 86 Addresses 87 Publication details
DR LEO ZÄNGERLE
52 PIERRE KAPPLER
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At a glance
The 2014 financial year Economy
2014 in 1,000 EUR
2014 in 1,000 CHF1
2013 in 1,000 EUR
2013 in 1,000 CHF 1
Change in % 2014/2013 based on EUR values
+8.2
Weleda Group – key figures Net sales
364,289
442,475
336,700
414,408
Net sales natural and organic cosmetics
254,022
308,542
236,327
290,870
+7.5
Net sales pharmaceuticals
110,267
133,933
100,373
123,538
+9.9
35,120
42,658
33,983
41,826
+3.3
Operating result (EBIT) EBIT in % of turnover Consolidated result for the year
9.6%
10.1%
9,762
11,857
4,672
5,750
+108.9
48,084
58,404
36,499
44,920
+31.7
Net debt2
9,070
10,905
49,026
60,081
-81.5
Investments in intangible assets and property, plant and equipment
6,932
8,423
4,149
5,107
+67.1
Cash flow from operating activities
Full-time equivalents (FTE)
1,965
1,881
+4.5
Balance sheet total
265,168
318,825
237,077
290,580
+11.8
Shareholders’ equity
88,489
106,407
79,726
97,747
+11.0
8,818
1,403
+528.5
99,932
91,573
+9.1
Equity ratio
33.4%
33.6%
Weleda AG – key figures Profit for the year Shareholders’ equity Dividend in % of nominal value 1 3
5.0%
5.0%3
At balance sheet date, average year-end or historical rates 2 Short- and long-term financial liabilities minus cash and securities Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2015
Value-added statement 2014 Origin Group performance (turnover, other income and interest income)
2014 in million EUR
2013 in million EUR
Change in % 2014/2013
371.9
343.9
+8.1
Payment in advance (cost of materials, changes in inventory, depreciation and amortisation and other advance payments)
–212.0
–207.3
+2.3
Added value
159.9
136.6
+17.1
2014 in million EUR
2013 in million EUR
Change in % 2014/2013
Distribution To employees (employee income, as well as social contributions and pension fund)
132.1
82.6%
116.9
85.6%
+13.0
12.6
7.9%
8.9
6.5%
+41.6
1.9
1.2%
1.7
1.3%
+11.8
To lenders (interest expense)
3.5
2.2%
4.4
3.2%
–20.5
To shareholders (dividend)
0.61
0.4%
0.6
0.4%
–1.6
To the company (reserves)
9.2
5.7%
4.1
3.0%
+124.4
159.9
100.0%
136.6
100.0%
+17.0
To public authorities (taxes) To charitable organisations (donations), according to paragraph 2 (3) of the articles of incorporation
Added value
All information given at the prevailing rates at the time specified. Notes to the value-added statement: see page 32. 1 Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2015
At a glance
Environment
2014
Organic plant-based raw materials, in tonnes
2013
Change in %
2,353
1,995
+17.9
80,460
63,752
+26.2
106,240
104,582
+1.6
Social
2014
2013
Change in %
Headcount on balance sheet date, in number of people*
2,299
2,232
+3.0
714
694
+2.9
1,585
1,538
+3.1
Water consumption, in cubic metres Energy consumption (direct and indirect), in gigajoules
Number of male employees* Number of female employees* * Including trainees, apprentices, marginally employed staff, volunteers
ECONOMY
81.5 % reduction in net debt
Annual change in net debt since 2012
–81.5 %
2014
–41.4 %
2013 2012
–21.0 %
ENVIRONMENT
83 % organic proportion of plant-based raw materials
Plant-based raw materials from organic and biodynamic cultivation in tonnes since January 1st 2012 83 %
2014
78 %
2013
77 %
2012
SOCIAL
69 % of Weleda employees are women.
This figure applies to the Weleda Group and gives the proportion in the total number of employees in number of people. 2014
Women 69 %
Men 31 %
2013
Women 69 %
Men 31 %
2012
Women 68 %
Men 32 %
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Editorial letter from the Chairman of the Board of Directors
Dear Reader, On March 11th 2015, Dr Samir Kedwani passed away unexpectedly. His death has deeply shocked all of us as Weleda employees. We owe him a great deal, and it is difficult to imagine Weleda without him. This report is dedicated to him and the quality that was always of such great importance to him. You can find his obituary on page 10.
Our commitment to quality is the reason why increasing numbers of customers are placing their trust in us and remaining loyal to Weleda. What is so special about Weleda’s quality? We have selected seven factors. Seven Weleda employees represent these seven factors. Our understanding of formulations goes beyond purely the materials themselves. Meike Wenk, Head of Active Substance Development, Natural and Organic Cosmetics, explains this using the example of evening primrose. The robust, herbaceous flower is the lead plant in the new care range: “Its flowers open when evening approaches. This is like the independence of women in their mid-fifties.” (Page 14) We attach the greatest importance to the purity of ingredients. Dr Lucie Bauerschaper, Head of Quality Assurance, Natural and Organic Cosmetics, knows: “The efficacy of the raw material can, however, only be guaranteed by their purity. Which is why we want to know their origin and have a number of our own cultivation projects around the world.” (Page 38) Biodynamic cultivation yields the best plants. “Biodynamic preparations improve the resilience of the plants and soil fertility – the healthier it is, the better the plants and, as a result, their actives thrive”, according to Pierre Kappler, Head of Medicinal Plant Cultivation in Arlesheim and Huningue. (Page 52) Anyone using Weleda products already contributes to the sustainable and responsible use of our resources. “We don’t want to subtly force anything on our customers. We respect them in all aspects”, comments Françoise Kessler, Commercial Director at Weleda France. (Page 30) “We compose the fragrances of our products ourselves, and only from high-quality, natural essential oils. According to anthroposophical thinking, the fragrance of a plant is the expression of its spiritual essence.” Dr Leo Zängerle knows what he is talking about. He has been with Weleda for 15 years and is Head of Weleda’s Fragrance Competence Centre in Arlesheim. (Page 48) Fair trade is one of our values. “We can now prove this for almost all of our 650 raw materials”, says Annette Piperidis, International Strategic Sourcing Coordinator. (Page 24) “We process our high-quality raw materials with the greatest care.” Dr Christian Birringer, Head of Starting Substances Manufacture, refers to formulations that in some cases go back to Rudolf Steiner. (Page 34) Of course, there are also indirect factors that contribute to good quality, including the high degree of commitment of employees, a positive company culture and a competent Executive Board. The interplay of these factors has resulted in a commercial strength that enables us to continue to work on quality. On behalf of the Board of Directors, I would like to take this opportunity to thank the Executive Board and the Weleda employees for their commitment, and you as shareholders and holders of non-voting shares for your support.
Paul Mackay, Chairman of the Board of Directors of Weleda AG
Report from the CEO
Dear Sir/Madam, When compiling this report, our thoughts were with our departed colleague and friend, Dr Samir Kedwani. The success that we are able to report is to a substantial degree also his success. His achievements are an obligation to us to handle the fruits of our labour carefully and in a forward-looking manner.
Weleda reports solid growth as innovations pay off. This was the headline for our media release in early 2015, as the Weleda Group posted an operating result (EBIT) of EUR 35.1 million for 2014. Turnover amounted to EUR 364.3 million (2013: EUR 336.7 million), representing an increase of EUR 27.6 million (8.2 per cent) year-on-year. Adjusted for changes in exchange rates, growth in turnover was 8.6 per cent. Once again, both pharmaceuticals and natural and organic cosmetics contributed to this growth: turnover in pharmaceuticals was up by around EUR 10 million (10 per cent), while that in na tural and organic cosmetics increased by around EUR 18 million (8 per cent) compared to the previous year. As in 2013, we were therefore able to exceed our targets. We were also able to improve our result for the third year in a row. The growth in turnover and our rigorous cost control contributed to this. The improved result is also expressed in our operating cash flow. Together with our moderate investment activity, we were therefore able to reduce our net debt by a further EUR 40 million in 2014. Weleda is thus improving its resilience in order to be able to meet the future challenges in an intensively competitive market environment. Increasing turnover, earning money, reducing debt – I like reporting these. However, this is not the purpose of our business. I consider it to be a result of our work in many areas. While the economic pillar of sustainability was weaker until now compared to the environmental and social pillars, we can say that we have now caught up in this respect and that the company stands on three equally solid feet. You can read about this in our interview with CFO Michael Brenner on page 31. This type of achievement is only possible if employees work enthusiastically, are involved and have the opportunity to develop initiative and creativity. This is how I experience the collaboration throughout the company – and I would like to take this opportunity to express my sincere thanks for this to all employees! This year’s annual report explores the question what is so special about Weleda’s quality? A lot of what we have initiated flows into improving quality. I include here the investment in the issues of ”culture and identity” and ”management”, the development of a Weleda sustainability strategy and the strengthening of innovation management. This also includes the focus of the company’s entire organisational structure on the challenges of the digital age as well as the continuous renewal and improvement of the Weleda product portfolio to the benefit of our customers. I would also like to mention the professionalisation of purchasing and the achievement of operational excellence. The annual report touches on all of these issues, which give an overview of the comprehensive further development of Weleda in 2014.
Ralph Heinisch, CEO of Weleda AG
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Organisation and management
Continuous improvement based on stable structure Following our focus in the two previous years on organisational changes, in 2014, we increased our innovation activity and further enhanced productivity. Our ongoing tasks include further developing the management structure and strengthening our corporate identity.
Staff Functions and Services Unit (Ralph Heinisch, CEO) CEO directly responsible for Culture and Identity The Culture and Identity function has been overseen directly by the CEO since January 2014. For Weleda, as an anthroposophically inspired and value-oriented company, the Culture and Identity function is of key importance as it provides positive impetus in all activities and all areas of the company. Weleda’s principles confirmed Weleda is a company with specific ideals. These values – which are Weleda’s principles – form the basis of our thinking and actions. These principles were discussed in depth in the year under review, and confirmed once again in the organisation with no changes. The principles are based on our anthroposophic values, which at their core are timeless and permanently valid. New IT strategy requires organisational changes The new IT strategy resulted in organisational changes. The former
Information Technology (IT) and Process Organisation Management areas are now Organisation and Information Management (OIM). Project and process management, corporate architecture, information technology and IT governance are managed under this umbrella. The renaming to OIM is intended to express that the strategy of the company’s entire organisational structure is taken into account and also covers the challenges of the digital age as well as the needs of stakeholders (employees, departments, areas, suppliers, customers, etc.).
Finance and Services Unit (Michael Brenner, CFO) New Treasury and Tax area established Recent years have shown that management duties in the areas of controlling, taxes and finance are constantly increasing and becoming ever more challenging. To meet these demands and better exploit potential, the former Finance and Controlling area was divided into the two areas Accounting and Controlling as well as Treasury
The Board of Directors of Weleda AG (from left to right) : Dr Harald Matthes, Dr Andreas Jäschke, Elfi Seiler, Dr Jürg Galliker and Paul Mackay.
Organisation and management
and Tax, with effect from January 1st 2014. Responsibilities for taxes, financing (Treasury), insurance management and internal control system (ICS) have been combined under Treasury and Tax. Purchasing project completed successfully The project to optimise indirect purchasing in Germany and Switzer land was completed successfully in December 2014. The main focus was on a central purchasing structure and further professionalisation. More efficient processes and savings worth millions testify to the project’s success.
Commercial Unit (Andreas Sommer, CCO) Innovation management strengthened The continuous renewal and improvement of the Weleda product portfolio to the benefit of our customers are key to the company’s success. Since the resumption of innovation activity, we have successfully launched numerous new products in a shorter time over the past one and a half years.
The comprehensive Natural and Organic Cosmetics Innovation Programme 2018 places high demands on the entire company. Ongoing work on the innovation process, improvement of cross- functional collaboration and the further professionalisation of the project organisation have proven successful in this regard. Weleda Netherlands/Belgium (NL/BE) back on track Weleda NL/BE faced a critical situation on the market in 2013. In addition to his responsibility as Regional Director for North Ame rica, Jasper van Brakel also took over management of Weleda NL/ BE temporarily at the time. Following a successful turnaround, the subsidiary is back in a phase of growth and further improvement in profit. We have introduced appropriate measures for 2015.
Operations Unit (Dr Samir Kedwani, COO, † March 11th 2015) Production areas at the Arlesheim site combined In order to further develop the Operations Unit, we placed the pharmaceuticals and natural and organic cosmetics production areas
The Executive Board of Weleda AG (from left to right): Ralph Heinisch, Andreas Sommer, Dr Samir Kedwani († March 11th 2015) and Michael Brenner.
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Organisation and management
at the Arlesheim site under single management, ensuring the unique pharmaceutical-anthroposophic quality remains the responsibility of the respective heads of production. Operational activities are being combined and controlled centrally for the entire site. Our aim is to enhance productivity.
OpEx affects employees who are directly or indirectly involved in the development and provision of product services for our customers, including support processes. We expect OpEx to generate definite growth in productivity and thus savings.
Operational Excellence initiative launched in Production The Operational Excellence (OpEx) approach leads an organisation to achieve continuous improvement. OpEx is a systematic approach to structural, process and behavioural changes in order to carry out production-related work as best as possible. These improvements are achieved with the participation of those concerned.
Dr Samir Kedwani – passed away on March 11 th 2015 While we were compiling this Annual and Sustainability Report, we received the sad news of the sudden death of our colleague Dr Samir Kedwani. Samir Kedwani made a significant contribution to the work in 2014.
When asked some time ago in an interview for our employee magazine how he would be remembered in the future, he answered, ”He remained a human being in all situations”. This ”in the future” unfortunately came much sooner than expected. We, the employees of Weleda, can confirm: yes, Samir Kedwani was a man who remained a human being, even when the situation was sometimes trying. He was born on June 10th 1965 in Cairo, Egypt. His father was Egyptian and his mother, Austrian. His parents soon moved to Austria. Samir Kedwani grew up in Salzburg and Graz, where he studied pharmacy at university after graduating from secondary school. During his studies, he encountered the teachings of Hildegard von Bingen, classical homeopathy and herbal medicine. Following his doctorate on the sweet chestnut, he worked for two years in a pharmacy from 1993. Between 1995 and 1998, he headed up the pharmaceutical division of an Austrian natural medicines manufacturer. He joined Weleda Austria in Vienna in 1998, and soon became its managing director. Within just a short time, he succeeded in thoroughly modernising operations in Austria. This drew attention to him in the Weleda Group, and in 2001 he was called to Schwäbisch Gmünd to take on responsibility for pharmaceutical manufacturing. From 2005, he also became responsible for the Arlesheim (Switzerland) and Huningue (France) sites. He ensured that existing duplication in production was gradually reduced with calm, persistence and prudence. In 2012, he was appointed COO on the Executive Board of Weleda AG. Samir Kedwani lived for anthroposophic pharmacy. The economically sustainable manufacture of Weleda pharmaceuticals was one of the substantial challenges, on which he worked until the end. Retaining existing knowledge was also one of his great concerns, and he therefore initiated the creation of a competence centre for anthroposophic pharmacy shortly before his death. Samir Kedwani will remain in our hearts as an extremely kind and competent colleague and friend. We will continue his work in his spirit.
Sustainability
Sustainability strategy: actively shaping the future 2014 was marked by the implementation of the sustainability targets and strategic considerations on the future direction. The issue of therapeutic diversity was included as an additional area of action. Marketing, Finance and Human Resources are now represented in our core Sustainability team.
The newly added areas of Marketing, Finance and Human Resources How can we do good for all parties involved throughout the mean that all three pillars of sustainability – economy, social and Weleda supply chain? What economic, social and environmental chalenvironment – are now represented even more strongly in the core lenges does the future hold for us? Where do we see our duties and team, in line with the criteria of the Global Reporting Initiative. how do we fulfil these consistently? Where do we also leave ourWe were able to achieve important objectives in 2014. In selves scope to respond to new issues according to the situation? the area of economic sustainability, for example, the number of An interdisciplinary working group focused on these issues in the innovations increased and the internal innovation process was re- year under review. The considerations are currently being developed vised. Sustainability objectives now form part of the agreements into a target, which will then be agreed with the key stakeholders. for managers. All objectives of the sustainability strategy are sum- The outcome, including the results of a stakeholder survey, will then marised on the next two pages, along with the results from the form the basis for a revision of the strategic sustainability orientayear under review. tion.
New area of action: therapeutic diversity
Environmental protection Biodiversity and sourcing of raw materials
Sustainable packaging
Corporate responsibility
Corporate sustainability strategy
Therapeutic diversity
Fair trade
Commitment to employees
The sustainability flower covers all areas of action of the sustainability strategy. Water and climate protection were merged into a single field in 2014. We included the issue of therapeutic diversity as an additional area of action. Weleda promotes diversity of medical approaches by making a significant contribution to maintaining anthroposophic medicine as a cornerstone of complementary medicine and further developing it. In addition to application within the company (raw material logistics, manufacturing, quality assurance, research, development), this also refers to dialogue with doctors, associations and political bodies at international level. The pharmaceutical strategy should be viewed in light of this social commitment; this strategy aims for the development of a needs- and future-oriented, economical pharmaceutical range.
Living and experiencing sustainability The sustainability strategy comprises seven central areas of action.
Sustainability is close to our heart The current sustainability strategy covers the period from 2010 to 2015. In the year under review, we therefore introduced an assessment of the current situation and re-evaluation. Sustainability is the model for the way we conduct business. It is something close to our heart that also motivates us. The sustainability targets and duties will therefore remain a priority and continue to form an integral part of our corporate strategy in the future.
We make high demands of our partners and suppliers with regard to responsible use of resources. We also encourage sustainable awareness and a sense of personal responsibility within our own company. Together with all departments, we developed objectives and measures for area-specific environmental management in the year under review. This resulted in a binding handbook for all employees, with criteria that are checked annually for the ISO 14001 and EMAS certifications. You can find further information on environmental, social and economic responsibility in the individual sections, starting on pages 15, 25 and 31.
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Sustainability
Goals and measures of Weleda’s sustainability strategy At the heart of Weleda’s sustainability strategy are goals that concern the company’s core business. The overview below shows the achievements made and the new objectives. Goal met
Goal partially met
Goal not met
Goal achievement not yet known
In the case of long-term goals over a period of many years, goal achievement is only known in the final year.
Economy Goals set
Achievements 2014
Goals 2015
Annual calculation of economic indicators on sustainability performance to 2014
Stakeholder survey not yet completed
The goal will be continued
Improvement in the earnings situation for pharmaceuticals by 2016
Measures from the pharmaceutical strategy for 2014 implemented
The goal will be continued
Stakeholder survey in 2014
Stakeholder survey not yet completed
The goal will be continued as part of the sustainability strategy revision
Launch of innovations in 2014
Number of innovations increased; innovation process revised and implemented
The goal has been achieved; the new innovation process has been operationalised. No new goals for 2015
New goal Reduction of net debt to improve risk capacity and independence
Complete elimination of net debt by the end of 2015
Social Goals set
Achievements 2014
Goals 2015
Validation of all raw material suppliers according to the Weleda UEBT standard (Union for Ethical Biotrade) by 2015
Risk assessment completed, definition of measures and auditing of (upstream) suppliers successfully started
The goal will be continued
Annual support for two social projects
Projects in Honduras and Madagascar were supported in 2014
The goal will be continued
Development of social criteria for suppliers by 2015
Evaluation started
Development of a concept for social criteria for all Weleda suppliers, for example in a master’s thesis
Definition of area-specific sustainability issues as a basis for the involvement of employees by 2014
A handbook with area-specific requirements has been completed
Programme to raise awareness and promote the sustainability commitment; operationalisation of area-specific sustainability requirements
Annual enhancement of the offering on diversity management, including health management
First healthcare marketplace in Switzerland; offerings of the Weleda Academy on the issue of mental health and resilience in Switzerland and Germany
The goal will be continued
Development of a uniform assessment system for suppliers in collaboration with UEBT members
Sustainability
Goals set
Achievements 2014
Goals 2015
Annual offer of a supporting programme for employees
Advisory service on parental leave and maternity; partnership programme; introduction of an expectant-mothers meeting; WE CARE meetings in Germany for employees with domestic care responsibilities
Further development of offers for reconciling work and private life
Promoting equal career and earnings opportunities for men and women by 2014
Remuneration system introduced in Germany and Switzerland
The goal will be continued
New goal Promotion of professional and personal development for employees
Development of a concept for talent management within the Weleda Group; further development of the Weleda Academy and diversity management offerings
New goal Further development of a sustainable training strategy
Implementation of the approved acquisition policy for apprentices; development of the “International Weleda Junior Company” concept as a component in the training curriculum
New goal Introduction of a new sustainable development programme for new managers
Establishment of the “Management in Focus” development programme for new managers in Switzerland, Austria and Germany
ENVIRONMENT Goals set
Achievements 2014
Goals 2015
Increase in the organic proportion of plant-based raw materials to a minimum of 80 per cent by 2015
This proportion was increased by 5 per cent to 83 per cent.
The goal for 2015 has already been achieved
Reduction in energy intensity of 3 per cent each year until 2015
The strategic target for 2014 was achieved
The goal will be continued
Increase in water efficiency of 5 per cent each year until 2015
The strategic target for 2014 was achieved
The goal will be continued
Annual further development of environmentally friendly, recyclable packaging for natural and organic cosmetics
Potential for optimising existing packaging and optional materials has been investigated
The goal will be continued
Reduction in waste intensity of 5 per cent each year until 2015
The strategic target for 2014 was not achieved
The goal will be continued
Introduction of mobility management in 2013
The goal was not continued in 2014
Development of environmental criteria for suppliers by 2015
Criteria for paper and printing were approved
The goal will be continued
Fully traceable palm kernel oil supply chain for 85 per cent of the entire range by 2015
Partially met
Revision of internal palm oil / palm kernel oil strategy. Improvement of availability of palm kernel oil-based derivatives from suppliers. Participation in working groups in the Forum for Sustainable Palm Oil (www.forumpalmoel.org)
Change of raw material in the event of not switching to sustainable palm kernel oil by 2015
Partially met
The goal will be continued
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Ökologie
“A LOT OF ENERGY, TIME AND PASSION WENT INTO IT!” DR MEIKE WENK, 32 Head of Active Substance Development, Natural and Organic Cosmetics in Arlesheim (Switzerland)
Meike Wenk remembers the exact day late last summer when she opened the matt, magenta-coloured box for the first time and took out the tube containing the Evening Primrose Day Cream. “That was already a special feeling”, says the Head of Active Substance Development, Natural and Organic Cosmetics in Arlesheim. “After all, I was actively involved in its development; a lot of energy, time and passion went into it.” For months, the young biologist and her three colleagues worked intensively on implementing Marketing’s aims: finding the right active substance for a product range for skin from 55 years which is able to reduce the appearance of wrinkles. The path involved meticulous detective work – and initially led to a dead end. “While searching for a plant-based active substance that can reduce the appearance of wrinkles, our team came across Dragon’s blood”, explains Meike Wenk, “a red resin with outstanding prop erties.” But unfortunately, it stained the cream red. The search therefore continued, firstly with more time-consuming literature research. Centella asiatica or tiger grass put her and her colleagues on the right track: its main active substance, asiaticoside, stimulates collagen formation in the skin, thus reducing
the appearance of wrinkles. But what other ingredients would go with it? Sacha Inchi, or the Inca peanut from Peru, proved ideal, the oil of which is rich in unsat urated Omega 3 and Omega 6 fatty acids, breaks down harmful free radicals and soothes the skin. Added to this was the rich, nourishing oil from the tiny black seeds of evening primrose – the robust, herbaceous flower is the typical Weleda lead plant in this range: “Its flowers open when evening approaches”, explains Meike Wenk. ”This is like the independence of women in their mid-fifties. They liberate themselves from their environment and are no longer dependent on being ’seen’ by others.” Other key ingredients include wheat germ oil, parts of the olive and pore-refining witch hazel. After the ‘what’, the ’how much’ has to be determined – the right ratio for day and night creams, body lotion and body wash, for eye, lip and hand products, and the evening primrose oil. All this is now in the specifications with which the Evening Primrose care range can be manufactured permanently to a consistent quality. Meike Wenk, however, is already on winding paths to new actives, whose particular properties are sometimes only indicated by a footnote in an international journal.
Environment
For the future of our environment We engaged in environmental protection and promoting biodiversity through numerous initiatives in 2014. The update to and amalgamation of the environmental handbooks for Germany and Switzerland resulted in an improved tool for our environmental management.
Environmental procurement of raw materials We were already able to exceed our aim of achieving a proportion of 80 per cent plant-based raw materials from organic and biodynamic cultivation by 2015 in 2014. The organic proportion of plantbased raw materials was 83 per cent in the year under review. Six hundred and fifty natural raw materials are used in the manufacture of Weleda products. Some of the raw materials are obtained from local partnerships, via which Weleda contributes to a regular income and improved living conditions for smallholders and wild collectors. In the Moroccan Atlas Mountains, for example, we support a cooperative of more than 300 smallholder families, who organically farm iris crops. The essential oils from the rootstocks are valuable ingredients in the manufacture of Weleda natural and organic cosmetics and fragrance blends. Following approval of the internal palm oil strategy in 2013, we were able to achieve our goals in 2014. Weleda products are manufactured either without palm oil or using proven sustainable palm kernel oil or its derivatives. In addition, Weleda is represented
in two projects. In the Communication working group of the Forum for Sustainable Palm Oil (Forum nachhaltiges Palmöl – FONAP, www.forumpalmoel.org), we developed information and awareness-raising possibilities on the issue of palm oil. We participated in the WWF’s Palm Oil Buyers’ Scorecard in 2013. The WWF used this palm oil check to assess the use of sustainable palm oil by companies in the D-A-CH region.
Protecting and experiencing biodiversity Weleda is actively involved in international organisations for biodiversity and sustainable use of natural resources. In 2014, we continued our involvement in the network Biodiversity in Good Company (www.business-and-biodiversity.de). We were successfully recertified by the UEBT (Union for Ethical Biotrade) after three years of membership (page 27). At the Baden-Württemberg State Horticultural Show in Schwäbisch Gmünd, Germany, Weleda apprentices and partner firms committed to sustainability built a pavilion together which drew
Geneviève Barraqué Practising masseuse for well-being massages, France
I have been aware of the Weleda brand for more than 20 years. It’s the only brand that I use in my job. I trust the company’s commitment to quality and harmony with the human being. I consider using Weleda products as real care that nourishes my whole being. I feel the living energy behind every composition, and I know that it brings pleasure every time I offer a new product from a range. This is seen by my clients as being particularly attentive.
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Environment
a ttention to the importance of the elements water, fire, earth and air. You can read more about the State Horticultural Show, a highlight of 2014, on page 26. To raise awareness among Weleda employees of the importance of biodiversity and its beauty, biodiversity days were held in Switzerland and France in summer 2014, with tours and lectures. In Arlesheim, an excursion was led through the Reinach heath (Reinacher Heide), a conservation area close to the company’s premises, which is home to 700 species of animal and plant. In Huningue, employees could test their knowledge on an interactive biodiversity trail.
Weleda premises The total area of Weleda’s operating premises and buildings is 469,713 square metres. In total, 129,722 square metres of the company’s premises are adjacent to protected areas and areas of high biodiversity value, while 22,737 square metres have a high biodiversity value in their own right. The Weleda medicinal plant gardens, which are located at various sites around the world, take up a significant portion of the premises. We grow medicinal plants for the manufacture of Weleda pharmaceuticals and natural and organic cosmetics in the biodynamically cultivated gardens.
Weleda supports Swiss bee and beekeeper projects. The young beekeepers of the Bee Club learn how to keep and care for bees. Insect hotels offer wild bees valuable nesting opportunities. Differently sized drilled holes as well as reed stems or thin bamboo sticks serve as brood cells for the bees.
2013
Raw materials in tonnes
2014
Conventional
Organic, biodynamic
Organic component in %
Conventional
Organic, biodynamic
Organic component in %
Plant-based raw materials1
548.1
1,995.0
78
477.6
2,362.7
83
Animal-based raw materials2
127.1
27.1
18
130.3
28.3
18
Minerals3
32.3
33.1
1,047.7
1,498.1
5
228.0
208.2
Fossil-based organic raw materials6
3.2
2.8
19.8
21.9
Near-natural raw materials4 Inorganic raw materials and metals
Biotechnologically produced raw materials7
With plant-based bulking materials, starches, emulsifiers, etc. Honey, lactose (for solid pharmaceutical forms), beeswax, lanolin, etc. 3 Clay, talc, salt, etc. 4 Surfactants, glycerol, etc.
Siliceous bulking materials, chalk, metals for production of pharmaceuticals, etc. Petroleum jelly and paraffins for specific medicinal ointments 7 Natural thickening agent
1
5
2
6
Environment
In 2014, the Weleda Brazil medicinal plant garden was awarded Demeter certification. Around 50 different species of medicinal plant are cultivated there for pharmaceutical production, including Avena sativa (oat), Bryophyllum and eucalyptus. Fruit- bearing trees such as avocado and papaya also provide a habitat and food for various species of animal. Part of our identity is to design our own premises to be nature-oriented and to appeal to employees and guests. At the Huningue site in France, for example, a biodiversity path and hanging garden in the building foyer are two highlights for observers. In the year under review, Weleda Germany took part in the “Nature Value” research project of the German Federal Agency for Nature Conservation. A case study is investigating how company premises that are designed to be nature-oriented can contribute to promoting biodiversity. The study will be published during 2015.
January 2015, standardised recycled paper that meets high environmental criteria has been used throughout the company in marketing and communication. Compliance with our measures is checked annually in the ISO and EMAS audits.
Eco-friendly mobility To lower harmful emissions, Weleda promotes eco-friendly modes of transport. Powered by green electricity from hydropower, an almost silent and emission-free electric van is in use at the Arlesheim site between the company’s premises and external warehouse. In Schwäbisch Gmünd, an electric car is being used as a company vehi cle for journeys between different sites. It is powered by electricity from Weleda’s own photovoltaic system.
Tools of Weleda’s environmental management Weleda’s Arlesheim site was successfully revalidated to ISO 14001 in 2014 and – like Weleda Germany – also meets the EMAS requirements (Environmental Management and Audit Scheme). By integrating the ISO and EMAS criteria in the Weleda environmental management system, we want to systematically improve and transparently document our performance in protecting the environment and biodiversity. Compliance with the requirements is assessed annually by internal and external auditors. We introduced an environment handbook in 2014. The handbook is binding since January 2015 and applies initially to the Weleda sites in Switzerland and Germany. It describes the specific environmental impacts of individual areas of the company. Our aim is to reduce environmental damage in everyday operations by developing new measures based on the defined environmental impacts. One area of action, for example, is materials procurement. Since
Cycling to work In summer 2014, employees from the Weleda sites in Germany, Switzerland and France took part in a health-promoting initiative to help the environment. Twenty-seven teams totalling 104 employees swapped cars for bikes for their journeys to work. The participants all got pedalling with a great deal of fun and commitment and covered a total distance of 16,456 kilometres. Although this does not correspond to the target of circumnavigating the Earth, it does reach as far as Sydney. The energy balance is clear to see: the teams burned around 385,000 calories. By way of comparison, a car would have emitted 2.2 tonnes of carbon dioxide.
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Environment
Water – our most valuable commodity All Weleda Group companies are committed to using the vital element water as efficiently as possible. In 2014, we were able to further reduce water consumption per kilogram of manufactured product content and substantially undercut the target set.
Careful use of water There are good reasons for using the valuable resource of water carefully. As a result of climate change, drought or at least lower season rainfall are predicted in many countries around the world. Wasteful journeys and preparation processes as well as industrial pollutants are affecting drinking water quality and damaging our ecosystems. We contribute to protecting the environment through the organic, pollutant-free cultivation of our raw materials, and the avoidance of antibiotics and hormonal substances in our pro ducts. This also generates lower costs to the public and for the company.
Total water consumption falls compared with 2014 In comparison with 2014, we were able to reduce total water consumption by approximately 5,000 cubic metres. Due to moderate summer temperatures, ground water consumption for the air conditioning at Weleda France fell. Although Weleda Germany collected less rainwater to water the medicinal plant garden due to lower rainfall in 2014, it only had to compensate for this slightly by using drinking water. Drinking water consumption rose in 2014 by approximately 17,000 cubic metres year-on-year. At Weleda Switzerland, the value measured for 2013 was below actual consumption due to the meas-
Performance figure: water intensity This performance figure shows the amount of water consumed from the public water supply in litres per kilogram of product content manufactured. Strat. goal 2014: 11.8
2014
9.5
2013*
9.8
2012
13.3
The strategic goal is calculated from an annual reduction of 5 per cent, starting from the basis year 2010. *Due to a technical defect on a measuring device, actual consumption in 2013 was above the value given.
This reed bed wastewater treatment plant is used to clean waste water from the kitchen and sanitary facilities of the buildings at the medicinal plant garden in Schwäbisch Gmünd.
uring device having a technical defect. The actual value for 2013 could no longer be determined, which makes a direct comparison difficult. A two-year comparison shows that water consumption at the Arlesheim site fell by approximately 10,000 cubic metres from 2012. Weleda France was also able to save approximately 5,000 cubic metres, primarily through lower steam production. Group-wide, it was possible to decouple drinking water consumption from production growth. While production volumes have risen by more than 50 per cent since 2010, drinking water consumption has fallen.
Strategic target undercut We were again able to reduce water consumption per kilogram of manufactured product content. Due to the technical defect mentioned, the 2013 water intensity figure cannot be used as a comparison. However, a two-year comparison shows that water consumption fell by 3.8 litres per kilogram of product content from 2012. This result is due to economies of scale from higher production volumes and efficiency projects implemented, meaning that we were able to significantly undercut the strategic target for 2014.
Environment
Clean energy for the future of our planet Climate change is the biggest environmental challenge of our time. To limit global warming, industrialised countries in particular are required to drastically reduce their greenhouse gas emissions. We have been committed to using energy as efficiently as possible and increasingly using renewable energy for many years.
Energy consumption and emissions The share of renewable energy remained constant compared to the previous year in 2014. Over 93 per cent of electricity consumption in the Weleda Group came from renewable sources. The share of renewables in direct energy consumption was 6 per cent. Weleda Switzerland now covers all of its electricity requirements from hydropower and solar energy from certified renewable sources. The electricity supply of a rented storage building was switched in 2014. Emissions values were 5.2 per cent higher than in the previous year. Although direct emissions fell by 7.9 per cent, indirect emissions increased as a result of the higher proportion of coal and heating oil in the generation of conventional electricity. Weleda France worked on setting up a network for cooling in 2014. This should lower greenhouse gas emissions by 10 per cent and will affect the figures for the coming year. Group-wide energy consumption increased slightly compared to 2013 in the year under review, by 1.6 per cent. The largest-producing Weleda companies (Germany, France, Switzerland) consumed only just under 1 per cent more energy, despite a 10 per cent increase in volumes manufactured. Based on this pleasing result, we were able to further improve our energy intensity in 2014 and undercut the strategic target. Only 3.6 kilowatt-hours of energy were required per kilogram of product content, rather than 4.1 kilowatt-hours of energy previously. Successfully implemented measures to improve energy efficiency and economies of scale contributed to this good result.
Woodchip heating at the Arlesheim operations area results in a significantly better CO2 balance than heating oil or natural gas.
Reduction in greenhouse gas emissions: heat energy from renewable sources Performance figure: energy intensity This performance figure shows the amount of energy consumed in kilowatt-hours per kilogram of product content manufactured (for the German, French and Swiss production locations). Strat. goal 2014: 4.1
2014 2013 2012
3.6 4.1 4.3
The strategic goal is calculated from an annual reduction of 5 per cent, starting from the basis year 2010.
In November 2014, Weleda Switzerland signed an agreement with the Swiss Federal Office for the Environment (FOEN). Under this agreement, we commit to reducing our greenhouse gas emissions by a total of 125 tonnes in the next eight years. In return, Weleda is exempt from the CO2 levy until 2020. The reduction in greenhouse gas emissions will be achieved through investments in technical equipment and buildings. Weleda Germany is currently examining the use of a combined heat and power station. This type of plant can generate heat and electricity at the same time, thereby significantly improving efficiency. New windows with better insulation were installed at the Schwäbisch Gmünd site in 2014 to use heat energy more efficiently.
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20
Environment
Packaging design challenge We were involved in the further development of environmentally and economically sustainable packaging solutions through various initiatives in the year under review. Many factors have to be taken into account: from eco-friendly raw materials to visually and haptically appealing design to recyclability.
From raw material to recycling
21.4 tonnes less packaging material
We strive to constantly improve the recyclability of our packaging. A team from various departments is dedicated to optimising existing packaging and finding new packaging solutions. The foundations were developed in a term paper for further indicators to enable more detailed measurement and control of the environmental aspects of natural and organic cosmetics packaging. The next step is to improve the data base in order to enable valid statements.
An adjustment in regard to the folding cardboard used for the boxes of some natural and organic cosmetics means that we now no longer need an additional printing process in manufacturing. Thanks to the better stability properties of the cardboard, the weight is also reduced, resulting in an annual saving of approximately 1 tonne of packaging material. Since 2014, product information has been printed on folding boxes in a more eco-friendly way, using colour printing instead of silver foil. In pharmaceuticals, we were able to optimise the glass packaging of tablets and triturations by reducing the range of diameters to a smaller number of uniform formats. This makes filling significantly more efficient due to shorter set-up times. Lighter screw caps for dilutions are enabling us to reduce material consumption by around 1.4 tonnes per year.
By reducing the basic formats to a few uniform sizes for glass packaging, the filling of tablets and triturations has become significantly more efficient.
Bioplastics not yet an option As a partner of the Association of Ecological Food Producers (Aöl, www.aoel.org), we are involved in a two-year project on “bio-based plastics”. We shared our requirements for packaging made from plant-based plastics here. Manufacturers of the starting materials in particular were made aware of the requirements when cultivating the plants, e.g. refraining from using genetic engineering. This project resulted in a web-based platform on which bioplastics can be assessed for use in packaging. For Weleda, the use of bioplastics is currently not yet an option due to the starting materials used until now and due to packaging requirements.
Performance figure: packaging intensity This performance figure indicates the weight of the packaging in grams per kilogram of all products manu factured in 2014. 397
2014 2013 2012
388 368
Environment
Sustainable use of waste The growing production volumes also resulted in higher waste volumes in the year under review. Ever more recoverable materials are entering the recycling loop, and all Weleda national companies are committed to waste avoidance and sustainable recycling. Waste intensity was improved significantly compared with the previous year.
Ninety-eight per cent of waste recycled Production volumes rose again at the German and Swiss sites in 2014. This had an impact on waste volumes, which were 7 per cent higher than the previous year at 90 tonnes. The relocation of Weleda departments to other buildings and a higher number of trial batches contributed to the increase. Fortunately, volumes of both hazardous waste, such as alcoholic tinctures and chemical additives, and of waste sent to landfill fell by a total of 24 tonnes. Ninety-eight per cent of waste was recycled, which is a 2 per cent increase on the previous year. Weleda already recycles, reuses or composts 63 per cent of all recoverable materials. These include in particular paper, cardboard, packaging for raw materials, glass and green waste. Thirty- four per cent of recoverable materials are incinerated. Due to ever scarcer raw materials, our aim is to continuously reduce waste volumes and increase the proportion of recyclable or compostable materials. Ideally, there would be an entirely waste-free material cycle in production. This is already possible in the medicinal plant gardens, where plant residues from tincture manufacture are composted. Plant-based waste is processed into fertile soil at the in-house composting facility and reused.
Commitment in the countries All Weleda companies are aware of sustainable waste recycling. In France, thanks to the change of a waste disposal partner, 10 tonnes of waste that were previously sent to landfill are now used to generate energy. In Germany, wooden pallets from goods deliveries are no longer incinerated but are in a reuse cycle. Weleda UK was able to optimise waste sorting, and thus achieve a higher proportion of recycling. The volume of waste sent to landfill was also reduced with a new waste disposal partner. Residual raw material from the production of pharmaceuti cals and natural and organic cosmetics is now also fermented and used to generate biogas energy.
Performance figure: waste intensity This performance figure shows the amount of waste generated in kilograms per tonne of finished product manufactured. Strat. goal 2014: 111.4
2014
111.8
2013
115.5
2012
115.7
The strategic goal is calculated from an annual reduction of 5 per cent, starting from the basis year 2010. The strategic goal of an annual improvement of 5 per cent, starting from the basis year 2010, was narrowly missed.
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Environment
Overview of resources used to manufacture Weleda products Direct energy consumption in gigajoules Total Non-renewable energy sources
2014
50,767
50,435
51,029
48,137
47,629
47,861
45,907
46,235
Heating oil
482
1,480
1,426
Fuels, oils
292
241
200
2,630
2,806
3,168
2,630
2,806
3,168
20121
20131
2014
Renewable energy sources Biogas
Indirect energy consumption in gigajoules Total Non-renewable energy sources Electricity
55,325
54,147
3,446
3,151
55,211 3,131
1,751
1,500
2,008
Heating and cooling
916
765
648
Nuclear energy
735
843
434
44
43
41
51,878
50,996
52,080
Other Renewable energy sources Solar energy
367
425
518
Wind energy
2,135
1,322
1,462
Geothermal energy Water power Biomass-based secondary energy Hydrogen-based secondary energy
56
0
1
46,454
46,201
47,828
2,420
2,677
2,139
446
371
132
2012
2013
2014
156,879
147,988
142,630
90,628
63,752
80,460
5,887
5,488
4,357
60,364
70,2411
57,813
Values for 2012 and 2013 have been corrected versus the 2013 report.
Water consumption in cubic metres Total Water from public water supply Rainwater, collected directly and stored Groundwater 1
2013
47,363
Natural gas
1
2012
The value 127,928 from the 2013 report has been corrected.
Environment
Materials purchased in tonnes
2012
2013
2014
Raw materials
3,366
4,045
4,795
Semi-finished products and bulk goods from external suppliers Trade goods Packaging
1
0
0
244
395
4,816
4,9771
5,315
Advertising material
560
575
834
Operational materials
172
106
130
Emissions in tonnes of CO2 equivalents
20121
20131
2014
Total
4,320
4,186
4,369
Direct emissions
3,167
3,100
2,825
2,936
3,067
2,805
231
33
20
Indirect emissions
1,153
1,086
1,544
Electricity, etc.
1,153
1,086
1,544
Waste volumes in tonnes
2012
2013
2014
Total
1,085
1,222
1,312
Normal waste
1,033
1,158
1,250
25
44
39
The value 3,596 from the 2013 report has been corrected.
Emissions for production of hot water, heat and steam Fugitive emissions
1
43 195
Values for 2012 and 2013 have been corrected versus the 2013 report.
Composting Reuse Recycling Recovery
19
19
41
592
683
738
16
12
13
338
360
398
36
35
14
8
5
7
52
64
62
Recycling
3
3
3
Recovery
1
5
13
47
49
43
1
7
3
Incineration or use as fuel Landfill Other disposal Hazardous waste
Incineration or use as fuel Other disposal
23
“AMBITIOUS TARGET S ENABLE US TO ACHIEVE MORE IN THE LONG TERM.” ANNETTE PIPERIDIS, 49
International Strategic Sourcing Coordinator (Germany)
From chocolate bars to frozen pizzas, from lipsticks to detergents: raw materials are also only sourced from sustainable supply chains. more than half of all products that are used every day contain palm “While this is a little more expensive, it complies with our commitment oil or palm kernel oil. Thanks to this universal additive made from the to sustainable purchasing.” This has always been a priority for Weleda. fruit of oil palms, these items have a longer shelf life; it also gives Through its membership of the Union for Ethical Biotrade (UEBT), the foods such as yoghurts as well as cosmetics a soft, creamy consist- company has been documenting its own drive for fair trade of raw ency. “Due to these outstanding properties, Weleda also uses raw materials for its own suppliers, maintenance of biodiversity and for materials based on palm oil and palm kernel oil in its cosmetic prod- countries of origin to receive decent compensation since 2011. “We ucts”, says Annette Piperidis, “and at the same time, we are working can now prove this for almost all of our 650 raw materials”, says Pipcontinuously on promoting sustainable cultivation.” The Coordinator eridis, whose department also guarantees social responsibility to for International Strategic Sourcing also represents the company in partners. For example, from this year, Weleda is providing farmers the Forum for Sustainable Palm Oil, which campaigns against the de- on the sesame cultivation project in Mexico with vaccines for emerstruction of the rainforests and slash-and-burn farming in Indone- gencies – scorpion stings can be life-threatening in the remote fields. sia and Malaysia, for example, and for careful cultivation. “Compared On the iris wild collection project in the Moroccan Atlas Mountains, to large corporations, we only buy the smallest volumes”, says the funding was provided for a well. As one of three newly trained inter49-year-old, “but we hope to achieve more in the long term through nal UEBT auditors, the keen amateur gardener recently visited the ambitious targets.” project herself and now also preserves the traditional knowledge of Weleda already only obtains palm oil of the highest quality the Berbers privately. Like them, Annette Piperidis first cut the iris from a certified organic plantation. By the end of 2015, Piperidis bulbs laterally and only placed a third of each of them back in the soil. wants to ensure together with her team that palm kernel oil-based The plot should flower particularly abundantly in the early summer.
Social
Living up to values and shaping the future Weleda is a living organisation. Our culture and values are the basis on which we form strong relationships for the future. Trust and responsibility shape the treatment of our employees, customers and partners. We provide scope for development, promote talent and maintain fair partnerships with our business partners.
Corporate Culture and Identity Nowadays, society, customers, politics and science often demand value-oriented companies that operate ethically. Corporate culture has become a real success factor in being attractive as a supplier and employer. Ensuring that the company’s culture remains vibrant and credible both internally and externally requires constant support and renewal. As an anthroposophically inspired company, we foster and develop our corporate culture. Since 2012, the Corporate Culture and Identity department has been responsible for corres ponding services and training offerings. This department has been assigned to the CEO at Executive Board level since January 1st 2014. Weleda’s conception of humanity and understanding of nature determined our identity as an authentic, value-oriented company. In view of the founding principle of Weleda and the growing competition, identifying with this culture and experiencing a meaningful community within the organisation is a key differentiator. Our employees are the most important ambassadors of the Weleda brand. We make a wide-ranging offering on cultural and value-related activities available to them worldwide.
France. Based on the principle of “perception, transformation and healing”, participants have the opportunity to intensively examine anthroposophic aspects as well as getting to know Weleda’s values, history and products. Current topics such as mindfulness, saluto genesis, resilience and biographical counselling are also addressed. Since the launch of the curriculum in 2008, more than 200 employees and managers have taken part. Other offerings include culture-specific training courses by the Weleda Academy, the “Anthroposophic pharmaceuticals” further training series, individual development assistance and support in personnel and organisational development.
Weleda curriculum An internationally oriented curriculum on “Weleda’s identity and basic values” is the core of our training programme. The nine-day curriculum comprises three modules in Switzerland, Germany and
New: Employee Representative Committee in Switzerland For us, social responsibility also means actively incorporating the concerns and views of employees in shaping the future of our company. In Schwäbisch Gmünd, the Executive Board and Human Resources have been working closely in dialogue with the works council for a long time. Based on a joint initiative by employees and the Executive Board, there has also been an Employee Representative Committee elected by the employees at the Arlesheim site in Switzerland since December 2014. In addition to site-specific concerns, cross-site issues will also be developed in the future. The Executive Board and Human Resources will discuss current challenges and future issues in a joint workshop with employee representatives from Arlesheim and Schwäbisch Gmünd.
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Social
Apprentices and students from the junior company “Natural talents by Weleda” together with Ralph Heinisch.
Junior company “Natural talents by Weleda”
The junior company developed new packaging and an own marketing campaign for its “Sonnenschatz” calendula plantbased soap.
Weleda provides targeted support for the development of young professionals in order to promote potential from an early stage and to be an attractive employer for driven young people who are attaching increasing importance to a meaningful career with responsibility and creative scope. In light of this, Weleda launched a pilot project at the end of 2013. Thirty-five apprentices and students set themselves the task of establishing a company together and developing an own product which would be sold just eight months later at the Baden-Württemberg State Horticultural Show in Schwäbisch Gmünd. The trainees set to work with a high degree of motivation. They organised themselves with almost no assistance, selected a management team and a name (Natural talents by Weleda), set up departments, including a Values department, doing all this as independently as possible. The management team of the junior company met with CEO Ralph Heinisch once a month. The young entrepreneurs learned to develop ideas and make and implement decisions under time pressure. They experienced all of the processes of a product launch for their product creation, a soap. The soap, called “Sonnenschatz” (sun treasure) was manufactured in a limited edition and sold at the State Horticultural Show – accompanied by enthusiastic reports in the press and on social media. A large drugstore chain thought the project was great and included the soap in its range for a limited time. The training project ended in November 2014 with great success. The trainees achieved impressive personal development within their company in just a few months. The junior company concept will form a fixed part of Weleda training in Germany and Switzerland in the future.
Neighbourhood, customers and other stakeholders
More than two million people visited the Baden-Württemberg State Horticultural Show in Schwäbisch Gmünd (Germany) between April 30 th and October 12 th. Weleda invited visitors to discover, be astonished and get involved in its specially designed fourhectare area, next to the company’s own medicinal plant garden.
Weleda maintains good relationships with local communities and institutions. These again resulted in joint projects in the year under review. One highlight was the Baden-Württemberg State Horticultural Show in summer 2014 in Schwäbisch Gmünd, which Weleda helped to organise in close collaboration with the town and the horticultural show organisation. Visitors to the Weleda medicinal plant garden and experience centre were offered a wide variety of impressions from nature, tours, as well as artistic and cultural events. More than two million people visited the State Horticultural Show – an absolute record in the more than 50-year history of the event. A large proportion of these visitors got to know and value Weleda.
Social
Madagascar’s landscapes are characterised by rice fields and small, wooded hills.
Tiger grass grows wild and is harvested by women from the villages.
Fair trade and working with suppliers Weleda sources natural raw materials and valuable medicinal plants from suppliers worldwide. We are committed through a range of initiatives to improving the living conditions of local farmers and plant gatherers, and promoting biodiversity in the regions of origin. In doing so, we work closely with non-governmental organisations (NGOs). For example, we buy organic sesame, the seeds of which provide precious oil for our natural and organic cosmetics, from Uganda in West Africa. The local cultivation partner supports and trains more than 450 smallholders. In 2014, we launched a project to build a well. This facilitates access to drinking water and improves the sanitary conditions of the smallholders and their families, affecting a total of approximately 2,800 people. We are aiming for further supplier cooperation for sustainably produced sesame oil, which would create the opportunity to expand the social commitment of the project. A further example is the support we provide in Madagascar for local smallholder communities in a wild collection project for
The tiger grass is passed through a deduster before being ground and packaged.
Centella asiatica (tiger grass). Centella extract is used in our natural and organic cosmetic products. Some 700 smallholders collect the plants that are processed by Weleda’s supply partner. By reno vating a schoolhouse, we are committing locally to education and in particular to the advancement of girls. The project is scheduled to run for a period of five years.
Union for Ethical Biotrade (UEBT) Weleda has been a member of the UEBT since 2011, and implements its standards for the promotion of biodiversity and socially fair procurement practices. The UEBT assesses its members’ compliance with criteria after three years. Weleda was successfully reaccredited in 2014. Many UEBT criteria have also been compulsory for our raw material suppliers since 2013. Weleda supported the UEBT Conference and the Biodiversity Barometer 2014. This gives insights into the development of consumer awareness as well as reporting by the cosmetics industry on biodiversity. Every year, the UEBT surveys 1,000 consumers in selected countries. Since the survey was first published in 2009, 38,000 users in 13 countries have been interviewed, and new countries are added every year. The focus countries in 2014 were Brazil, Germany, France, the UK, the USA, Colombia and Vietnam. The results were published at the UEBT’s Annual Conference in April 2014 in Paris (http://ethicalbiotrade.org/biodiversity-barometer).
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Social
Sandalwood raw materials project: growth for people and for nature We ensure the supply of valuable sandalwood extract for our natural and organic cosmetics with a reforestation project in the Sri Lankan uplands. People and organic cultivation in the region are also supported. This project demonstrates how social, environmental and economic concerns can be connected in a forward-looking way.
The idea of cultivating sandalwood plants and other crops such as Sustainable harvesting rhythm tea, fruit trees and cinnamon together is a new one. The different To achieve a sustainable harvest mode, the 500 naturally grown crops and the old, extensively used and now organically certified sandalwood trees on Rajiv Kulatungam’s farm have to be harvested tea bushes ensure a basic income for the people involved. Weleda in phases. At the same time, 250 trees per hectare are replanted has been making a contribution here since 2009, by giving the every year. The project enables us to combine a transparent supfarmers a higher, contractually agreed kilo price for sandalwood oil. ply of sandalwood oil with providing sustainable support for local The daily wage for agricultural workers is also one-quarter higher people. than the usual wage. In addition, we support a training centre that offers farmers’ and workers’ cooperatives training on organic cultivation, thus firmly rooting the idea of organic agriculture.
Preciousness from nature Sandalwood extract is one of the most precious natural fragrances. The wood from controlled origins in state-owned forests is first of all crushed, processed into rough shavings and then distilled using steam. One hundred kilograms of wood produces around one litre of sandalwood essential oil which we use as a base fragrance in sea buckthorn and pomegranate products, as well as the new Evening Primrose product range. There, it develops its inspiring scent and supports the skin’s natural balance.
Rajiv Kulatungam is responsible for this tree nursery in the sandalwood reforestation project.
Social
Overview of employees of the Weleda Group (as at December 31st 2014)
D-A-CH region
Total number of employees
Western Europe
Northern, Central and Eastern Europe
North America
South America, Italy, Spain
Asia/Pacific
1,346
521
68
27
282
55
Number of male employees
458
139
8
7
86
16
Number of female employees
888
382
60
20
196
39
Full-time employees
895
350
58
26
217
27
Part-time employees
451
171
10
1
65
28
72
8
0
0
10
2
*
Nature of employment
of which trainees, apprentices, marginally employed staff, volunteers
Employees by age group Up to 30 years of age
269
66
11
*
80
31 to 50 years of age
760
326
49
*
165
*
51 to 60 years of age
262
112
6
*
33
*
Over 60 years of age
55
17
2
*
4
*
Number of nationalities (total)
25
8
4
3
13
8
* Employment cannot be disclosed by age group for legal reasons. Composition of regions (associated companies): D-A-CH: Germany, Austria, Switzerland Western Europe: France, UK, Benelux (Netherlands, Belgium) Northern, Central and Eastern Europe: Sweden, Russia, Czech Republic (and Slovakia) North America: USA South America, Italy, Spain: Argentina/Chile, Brazil, Italy, Spain Asia/Pacific: Australia, New Zealand (excluding Japan, as minority holding)
Pedro Toledo Managing Director, Sesajal S.A., Mexico
We supply organic quality sesame oil. Weleda is one of our most important customers and requires the best quality from us. Weleda has an excellent reputation among all of our employees because the company’s employees are open and transparent, and very committed to the relationship. Although Weleda is very demanding in terms of quality, it fully respects the contract.
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“W E CUS RESP IN T OME EC T O AL L UR R AS S PEC FR A T S. N ÇOI Com ” S m
Hun
E er ing cial Di KESS ue (Fra rector LER, in 46 n ce )
Three hours. That’s how long it takes the TGV high-speed train to connect two worlds: Mulhouse and Paris. The home town of Françoise Kessler and the capital city with the Espace Weleda, the unique Weleda showroom, and INSEP, the French National Institute of Sport and Physical Education, where Weleda Arnica Massage Oil is used to soothe the muscles of top sportspeople. Twice a month, the commercial director for the French market travels from Alsace to Paris to meet major clients, media representatives and colleagues and to “get a feel for what is happening”. And when she returns to her office in Huningue, where the borders of France, Germany and Switzerland meet, and the small village where she lives, she enjoys the calm and the natural environment. Opposites not only attract, they unite as well, and this is something Françoise Kessler enjoys too. Twenty years ago, after a degree in advanced international business studies, she joined Weleda as a marketing assistant somewhat by chance and got to know the products. “After a while, I couldn’t use anything else”, she remembers, “and, at the risk of sounding corny, they feel like ’coming home’.” She then thought: “Surely there are many other people who feel the way I do?” All those women who do not necessarily always opt for organic but who are nevertheless drawn to natural cosmetic products with – and why not? – a touch of glamour. This is not something the Pomegranate
care range claims to offer – the range the commercial director and her 55-strong team have been focusing on since 2014 to appeal, in particular, to the modern woman over forty. Which is not to say that the extract from these precious seeds is without an element of sensuality: “The red colour is a terrific strength and the fragrance is very attractive”, says Françoise Kessler, who plans and coordinates marketing, communication, advertising and sales in France. “On top of that, the product wins people over thanks to its authenticity”, she adds. “For us, women are beautiful because they are true to themselves, and we are there to provide products of the highest quality that help their skin look good regardless of age. These are the values of primary importance for Weleda.” As is transparency: from sustainable sourcing to social commitment with our own cultivation projects, through to the purity of ingredients, everything is communicated openly. This is why there have been no additional donation projects to date. “We’ve been thinking about it, but we don’t want to do something run of the mill”, explains Françoise Kessler. “We also don’t want to force anything on our customers, not even in a very subtle way. We respect them in all aspects.” Everyone should be free to decide whether and how he or she expresses their commitment. And perhaps the very personal experience that is part and parcel of a Weleda product is already part of that commitment.
Economy
Sustainable business: an interview with Michael Brenner, CFO of the Weleda Group In September 2014, Weleda was awarded the sponsorship prize in the category “Business” by the Anniversary Foundation of Basellandschaftliche Kantonalbank. CFO Michael Brenner explains how the award fits well with Weleda and what we understand by doing business sustainably.
It’s unusual for Weleda to receive a business award. Has the direction of the company changed ? It is, in fact, the first time Weleda has won a prize for business. I’m proud of this award, as it is a tribute to the transformation process of the past few years that Weleda as a whole has successfully driven under its own steam. We also won the award, however, because we have remained true to our principles. In the prize certificate it says: “Weleda is a company that stands out not only through its determination to ensure the very best quality in its products, but also through its conception of itself as a social organism that, in all its business endeavours, seeks to achieve the best solution for all stakeholders.” This is primarily the backdrop against which the award should be viewed.
business on a purely profit-oriented basis. Our value-added statement (page 4) shows the contribution made by the Weleda Group in the year under review in respect of the various stakeholders.
In concrete terms, what is Weleda doing to maintain a balance between the various elements that play a part in sustainability? The economic dimension of sustainability means, first and foremost, The prize money was 15,000 Swiss francs. How will this be used? ensuring Weleda’s existence over the long term. In a world where the Essentially, this prize belongs to all employees. It is with their compace of change is increasing all the time, we have to be able to react mitment that they help ensure Weleda’s success. We will use the to changes more flexibly and to increase our resistance to potential prize money to extend our training project, the junior company problems. Secondly – and more importantly – the needs of all stake- “Natural talents by Weleda” (see page 26), throughout the entire holders have to be taken into account, satisfied in a way that makes Weleda Group in the form of an intercultural project. This pilot sense, and a healthy balance ensured between these various needs. project already ran successfully at Schwäbisch Gmünd last year; This sets us apart from other companies, which for the most part do this year, it will be taking place in Arlesheim.
Business award for Weleda Each year, the Anniversary Foundation of the Basellandschaftliche Kantonalbank awards a prize to people and companies who have stood out thanks to their cultural, business or sporting achievements in and around the Swiss Canton of Basel-Landschaft. The awards ceremony took place on September 30th 2014 in Sissach near Basel. The prize-givers praised Weleda as a company with exemplary business practices. CEO Ralph Heinisch accepted the award on behalf of all Weleda employees.
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Economy
Value-added statement 2014 By conducting business responsibly, Weleda improves its capacity to handle risk – from behaviour in the market to environmentally relevant aspects through to relationships with employees and exchanges with all other relevant interest groups and stakeholders. This creates sustainable value, which can be distributed to employees (earnings), investors (dividends, interest), charitable institutions (donations) and the public (taxes).
The value-added statement (page 4) shows how Weleda’s business actions create value for the company: unlike the income statement, which is based on the viewpoint of the owners, the value-added statement sets out the contribution made by the Weleda Group to private and public income. It shows the expense at which Weleda achieved its company performance and how the added value generated was distributed. In the 2014 financial year, business performance improved to EUR 371.9 million based on the EUR 28.0 million increase in Group performance. After deduction of advance payments, the added value of the Weleda Group amounted to EUR 159.9 million. Added value per Weleda Group employee amounted to EUR 81,409 and was thus 12.1 per cent higher than in 2013. EUR 1.9 million was spent on donations and similar contributions, with EUR 1.5 million of this figure going to the School of Spiritual Science in Dornach.
The added value was sufficient to cover the income of our employees. Weleda views its employees as co-entrepreneurs who are part of the business process. Supporting and promoting a sense of personal responsibility and self-awareness on the part of every individual is extremely important to the company. The public authorities received EUR 12.6 million of added value in the form of taxes. A further EUR 3.5 million is attributable to interest for creditors. Following a proposal from the Board of Directors, a dividend of 5 per cent will be distributed to shareholders for 2014.
Thomas von Künsberg Sarre Pharmacist, Germany
Every day, my eyes are drawn straight to the Weleda shelves in my pharmacy. The vibrant colours of the packaging just exude vitality and joie de vivre. I enjoy seeing customers’ reactions when they’re trying out a hand cream, for example, some curious, some sceptical, and seeing how they react when the cream slowly releases its wonderful fragrance. Each time, I’m really pleased for my customers when I see this mixture of delight and relief spread over their faces, together with the certainty that they’re doing something good for themselves.
Economy
Corporate governance: risk awareness as part of the corporate culture Risk management and the Internal Control System (ICS) are key elements of corporate governance. Over the past few years, we have conducted a comprehensive overhaul of these elements. In the 2014 financial year, we were rigorous in following the course set so that these important elements and processes could be anchored even more firmly in our organisation.
Mr Galliker, how would you assess the level of risk management and the ICS at Weleda in 2014? Auditors have to check whether an Internal Control System (ICS) is in place as part of the review of annual financial statements. As little as three years ago, our auditors had identified a few issues in this respect. The Audit Committee took these on board and, together with the Executive Board, initiated measures for improvements. The issues identified have thus been successively and systematically addressed over the past three years in such a way that, today, Weleda has a well-functioning ICS, a fact confirmed by the auditors. What remains to be done now is to maintain this level and, at the same time, ensure that the ICS can be viewed by staff as a useful part of their work. Each year the Board of Directors has to provide information in a financial report about the implementation of a risk assessment. The Weleda Group sees risk management as an important leadership task which contributes to promoting a risk-aware culture among all employees. For this reason, the risk policy of the Weleda Group was revised in 2014 under the aegis of the Audit Committee and the top risks identified, assessed and evaluated together with the Executive Board. These risks are risks which could jeopardise the existence of Weleda. The overarching objective of risk management is, thus, to ensure the continued, longterm existence of Weleda as the basis for the ongoing development of the company. The risks identified are now reassessed by the Executive Board twice a year and discussed in the Audit Committee. The Audit Committee in turn reports to the Board of Directors on its assessment of risk management.
Dr Jürg Galliker is a member of Weleda’s Board of Directors and Chairman of the Audit Committee, which monitors compliance with corporate governance requirements.
element in monitoring is the comprehensive report submitted by the auditors to the Board of Directors. If weaknesses have been detected, they are mentioned in the report and we can tackle them accordingly. Can you give an example of what such a risk looks like and how it develops? One such example would be the fragrance regulations envisaged by the EU. Now that this topic is no longer such a priority for the EU, it has been downgraded again. Risks through regulatory changes remain on our list of top risks, however, which is why we are keeping such a close eye on further developments in fragrance regulations. The way we work is a combination of looking back at what has happened and, at the same time, looking forward to what could happen in the future.
Was the change in the Swiss National Bank’s euro exchange rate in January 2015, for example, an issue that was dealt with by the Audit Committee? How does the Audit Committee ensure that this level is main- The Executive Board looked at it, issued its assessment and intained? formed the Audit Committee accordingly. We can use the instruThe monitoring of the risk management system and the ICS is an ments and experience available within the company as a basis for important part of the Audit Committee’s work. We had good expe- ensuring that risk awareness is in place and that risks can essentially riences with our risk policy this year. The Audit Committee con- be managed. We can rely on our managers knowing when they have stantly checks the direction in which the top risks are developing, to report a problem to the Executive Board. An important part of whether new risks are becoming apparent and whether risks are this is a culture in which things are not swept under the carpet and potentially cumulating. Alongside the purely formal process, this everything can be discussed. It’s about solving the problem, or makrequires constant dialogue with the Executive Board as well as ing sure that the risks involved can be handled appropriately. In this knowledge of the company and its environment. A second important respect, too, we see Weleda as a learning organisation.
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“THIS IS MY DREAM JOB!” DR CHRISTIAN BIRRINGER, 36
Head of Star ting Substances Manufacture and Head of Tincture Production (Germany)
Bright yellow. Liquid. Very much like limoncello! However, the liquid that comes out of the stainless steel drum at the touch of a button is not lemon liqueur, but the ingredients for Weleda hayfever drops: the essential oils of lemon and its citric acid, dissolved in alcohol. In order for the organic fruits from Sicily to release their valuable ingredients, they are first shredded in Weleda’s Tincture Production and steeped in alcohol for several days, “in much the same way as a ’rum pot’”, laughs Dr Birringer, who is in charge of the department. “That lets us get the most out of the plant and work it into a form that the customer can use.” After all, a whole lemon in itself is of little use to people who react allergically to grass and flower pollen. Especially as the fruit is not of interest in anthroposophic medicine because of its vitamin C, but because of its characteristic trait – its “signature”: as acidic as it is, lemon draws everything together. This makes it the antithesis of and, therefore, treatment for hayfever, where eyes and nose start running. Such an analogy-based approach was not a feature of Christian Birringer’s pharmacy studies, nor was the art of anthroposophic tincture preparation, where actives are extracted from parts of plants such as roots, leaves or flowers using alcohol, oil or water. This is done not only cold, but also at different temperatures. Formulations, some of them dating back to Rudolf Steiner’s time, dictate how Birringer and his 18-strong team unlock the essence of each plant, purely with water, with alcohol or with oil, and whether some heat should be applied, either by simmering briefly, as is the case with oak bark, or by boiling vigorously for half an hour. The application of heat makes it easier for the metabolism to “digest” a substance. In contrast, a cold maceration of a minimum of ten days is suited, in particular, to treatments for conditions with nervous causes. “At university, we were always told that no-one does this type of thing any more”, remembers Christian Birringer, who, even as a child, learned about homeopathy and spagyrics from his parents. He has been at Weleda for nine years. “This is my dream job. I’m working really closely with what makes our pharmaceuticals special!” From his office in Wetzgau, overlooking Schwäbisch Gmünd, Birringer can look out across the company’s own 20-hectare medicinal plant garden. This is where almost all of the roughly 160 fresh plant varieties come from, with just a short trip from the garden to his office: calendula and dandelion as well as specialties such as bitter nightshade. All the other tinctures for the more than 100 natural and organic cosmetics and approximately 1,000 pharmaceutical products are made using the “drugs” that come from the dried parts of plants stored in little paper bags in a cool warehouse, ready to be used. And nothing goes to waste: after being pressed completely, the lemons are used in the compost for the medicinal plant garden.
Economy
Weleda pharmaceuticals: working on futurability With Weleda pharmaceuticals, we operate in a heterogeneous international environment. Despite increasing regulatory requirements, we have been able to cultivate the market successfully. The profitability of the pharmaceuticals range is developing positively. At the same time, we are strengthening the anthroposophic approach to therapy.
Strong growth dynamic thanks to France and South America With regard to turnover, 2014 was a successful year for our pharmaceuticals, with global turnover up around 10 per cent on the previous year. Although the picture between the various regions and countries was more mixed, Weleda France did particularly well, boosted by an extremely dynamic year. The reasons for this were an optimised sales structure and price increases. Improved collaboration with midwives no doubt also had a part to play, alongside the strong tradition of individualised medicine in France. The development was all the more encouraging given that the range of pharmaceuticals in France is made up to a large part of physician-prescribed extemporaneous pharmaceutical products and freely available OTC products play a merely minor role. A significant rise in physician prescriptions and OTC sales in pharmacies generated high growth rates in South America. Pharmaceuticals business remained on a par with the prior year in Germany and Switzerland, due to a poor cold season. Pharmaceutical sales in other regions were steady with slight increases.
Weleda pharmaceuticals strengthened in the market Weleda is seeking to achieve the same high level of recognition of the Weleda brand in the pharmaceuticals market as for natural and organic cosmetics. This is why we are strategically investing in building up the brand and promoting sales in the areas of stress and sleep, eyes and colds. A number of training and advertising campaigns were developed for physicians, pharmacists and consumers. The Neurodoron television commercial at the end of 2014 marked the first time we advertised a pharmaceutical product to a broad public. Since the measures put in place so far are proving effective, they will be extended. Visiodoron Malva eye drops were successfully launched in the D-A-CH-countries, France, Italy and the Benelux countries – an important addition to the eye range. The drops, specially developed for tired and irritated eyes, are available in single doses. In future, they will be available in other European and non-European markets. We received authorisation for several pharmaceuticals in various countries in the year under review, for Sinudoron drops and Weleda cough syrup in Switzerland, for example, Infludoron in Austria and six homeopathic oral sprays in the UK. In Germany, subsequent approval was successfully completed for a number of pharmaceuticals, marking the end of a process which started in
the 1980s. The enormous amount of work this involved was well worth the effort, with several hundred preparations remaining in the anthroposophic pharmaceuticals treasure chest. This does not mean, however, that changes in line with the regulatory framework are now a thing of the past. For example, in Italy, a large number of old approvals are expiring, meaning that ranges will
The quality we require of all Weleda products The quality of Weleda products begins with the raw materials we work with: wherever possible, we use raw materials from certified organic and biodynamic cultivation as well as from controlled wild collection. This has enabled us to steadily increase the proportion of plant-based raw materials cultivated organically over the past few years to 83 per cent (see page 16). In further processing, too, right through to the finished product, we deliberately do not use synthetic fragrances, colourings or preservatives, nor do we use genetically modified organisms. On top of this, checks along the entire manufacturing chain guarantee that our raw materials and products are free of pesticides. Just as important, however, are the manufacturing processes which maintain the quality of the raw materials, refine them and transform their substance in order to make them suitable for human application. This means that our knowledge of the interplay between natural substances and people is also furthering the understanding of such processes. For example, we have learned to avoid the use of electricity as far as possible in all of our heating and mixing processes. In our manufacturing areas, we use mixers which operate using compressed air and boilers that are heated using steam instead of electricity. Electromagnetic radiation is measured in our key manufacturing areas and minimised, and is completely screened out in sensitive areas. Our objective is to expose our pharmaceuticals to as few external influences as possible.
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Real characters and genuine people characterised the “Pass it on” cold campaign. Their charm made it more convincing and memorable.
0:07 / 0:22
The Neurodoron television commercial was chosen by Healthcare Marketing magazine as commercial of the month in January 2015. The campaign began in November 2014 in Germany and was broadcast on Swiss television in February 2015. It was a major success in both countries.
have to be adapted and costly subsequent approvals obtained. Reimbursement is also an issue subject to regular debate at the political level. This could have a negative impact, in France in particular, where reimbursable Weleda pharmaceuticals play a major role.
Assuring the existence of anthroposophic therapy We worked intensively on the implementation of our pharmaceuticals strategy in 2014. The strategy is essentially based on the Weleda range of around 1,100 pharmaceuticals covering the requirements of physicians and patients and defined together with physicians’ representatives. In a next step, we will be checking, for each individual country, which part of this range we can make available. The condition is that the specific country ranges should be self-financing from 2016/17. Through the economic structuring of
Weleda UK launched a range of homeopathic pharmaceuticals against a variety of ailments in 2014. The practical sprays are easy to use, fast-acting and fit into any bag. A perfect solution for modern, demand ing consumers.
Economy
Weleda Cough Elixir, Infludoron globules and Visiodoron Malva eye drops represent Weleda’s cold and eye areas of competence, for which there were particularly intensive marketing efforts in 2014.
its country ranges over the long term and the intensive dialogue with the anthroposophic medical community, Weleda makes a substantial contribution to the continued existence of anthroposophic therapy. It is also against this backdrop that our efforts to keep patients supplied with the Iscador mistletoe preparation should be viewed. Following intensive negotiations, Weleda and the Society for Cancer Research reached a decision to discontinue their long-standing collaboration on Iscador. By the end of 2015 at the latest, all authorisations and the brand name Iscador will be transferred to the newly founded Iscador AG, a stock corporation headquartered in Arlesheim, Switzerland. It is majority-owned by notfor-profit organisations (Society for Cancer Research, Arlesheim, and Gesellschaft für klinische Forschung e.V., Berlin). Iscador AG’s activities are the manufacture and marketing of Iscador as well as
research and development in the area of anthroposophic oncology. With the exception of Switzerland, however, Iscador AG will only gradually be able to take over the relevant operational activities of Weleda AG due to regulatory requirements and deadlines. During this transitional phase, Iscador AG will work closely with Weleda to ensure a seamless supply of Iscador for patients. A further milestone in the development of anthroposophic therapy was reached in October 2014, when the University of Bern set up an associate professorship for anthroposophically extended medicine at its Institute of Complimentary Medicine. The professorship will be funded by Weleda and other partners. In the future, Prof. Dr Ursula Wolf, who holds the professorship, will advance anthroposophically extended medicine in research and teaching.
Torsten Arncken Medicinal Plant Researcher, Switzerland
For Weleda, the form of a plant and the substances created by the plant form a single unit. Any change to its form or structure also changes the substance. For example, a small green apple is still very hard and tastes sour. When it becomes bigger and turns red, it tastes sweet and aromatic. So the form can tell you something about the substance. At the same time, the form is a key for understanding aspects of the interrelationship between a given plant and human beings.
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Ökonomie
Dr Lucie Bauerschaper in Schwäbisch Gmünd knows when there’s been a really hot summer in Tuscany. After it, she and her team receive letters from customers, informing them of a slight change in the fragrance of Weleda’s Sea Buckthorn Body Oil. The written reply sent to such customers informs them, in turn, that a higher level of sunshine can indeed have an impact on the fragrance and this is not due to any sort of faulty process. Quite the opposite: cosmetics made from natural raw materials reflect the rhythms of nature, which makes them all the more dynamic and beneficial. It also makes them more vulnerable to supply bottlenecks, however, or even to minor fluctuations in production. This all serves to make all the more stringent and exacting the standards applied by the quality control staff with whom the Head of Quality Assurance, Natural and Organic Cosmetics and her team work closely together. As a “Qualified Person”, Dr Lucie Bauerschaper is responsible for the products that end up on the market, from the quality of the raw material through each step in production to the accuracy of the expiration dates on packaging and ultimate release. To this end, this food chemist who obtained her doctorate in molecular biology has been scrutinising even the tiniest details within the company since 2003. “It’s important for me to understand exactly how everything is connected. I need to be able to back it completely!” This is what motivates her, in particular, when it comes to the development of innovative products. If there is a formulation with new raw materials, suppliers need to be able to prove that these materials satisfy Natrue requirements in the same way as all others do. Weleda is a founding member of this non-profit organisation for which the requirements of the BDIH, the German association of industries and trading firms for pharmaceuticals, health care products, food supplements and personal hygiene products, do not go far enough and which backs legal certification along the lines of the EU organic certification for foodstuffs. Inter alia, the Natrue label prohibits animal testing, petroleum-derived products, genetically modified ingredients and irradiation to extend shelf life. “Although it’s not possible to prove”, says Bauerschaper, “the efficacy of the raw materials can only be guaranteed through their purity. Which is why we want to know their origin and have a number of our own cultivation projects around the world.” The difference between natural and organic cosmetics as Weleda understands them and conventional products is also reflected in the letters received. Customers who switch to Weleda sometimes describe a feeling of tightness. In such cases, Dr Bauer schaper recommends that customers start off with a richer night cream or a mild care product from the almond range: “The skin needs time to get used to being itself more active again.”
“IT’S IMPORTANT FOR ME TO UNDERSTAND EXACTLY HOW EVERY THING IS CONNEC TED!” , 41 DR LUCIE BAUERSCHAPER
, Head of Quality Assurance tics (Germany) me Cos c ani Org Natural and
Economy
Weleda natural and organic cosmetics: strategy bears fruit A fully fledged care concept and the needs of users are key for us in the development of new products. This strategy paid off in 2014, with a number of new products successfully launched in the markets. Eye-catching, authentic communication helped secure increased use of the Weleda brand.
Gearing successfully to consumers’ needs Weleda natural and organic cosmetics witnessed dynamic growth in almost all markets in 2014. Germany, Austria, France, Japan, Russia and Brazil, in particular, all posted double-digit growth figures, with an impressive 46 per cent in Russia and 27 per cent in Brazil. These five countries form the “power markets” in which, given the level of market potential involved, the focus of our market activities lies. The Weleda companies in these countries have priority, which is linked with higher growth expectations. The success of this strategy can be seen not only in how sales are developing; the significant jump in brand recognition, in France for example, is the result of intensive market cultivation and, at the same time, the basis for the long-term success of the Weleda brand. Weleda’s solid development has been supported by a worldwide market for natural and organic cosmetics that is still growing. This goes hand in hand, however, with increasing competition. Major producers of conventional cosmetics are trying to buy into this development through near-natural cosmetics and other natural cosmetics suppliers are seeking to expand at the international level. More and more retail chains are offering their own brands in the natural and organic cosmetics segment or the near-natural segment. This reflects the changes in what consumers are looking for. Expectations of natural and organic cosmetics are becoming increasingly like those of conventional cosmetics in terms of efficacy or differentiation of the product range. We have our own approach to this: while they can provide input and impetus, trends are not the only yardstick for product developments. The key factors in new products are our own fully fledged care concept and, in particular, the needs of our customers. With the development of the Evening Primrose care range launched in 2014, for example, we are responding to the changed needs of women from their mid-fifties on.
Highest quality standards A visible expression of our stringent quality standards is the Natrue label which features on all Weleda natural and organic cosmetics. This label serves as a guide for consumers and helps them distinguish between certified products and conventional and near-natural cosmetics. Despite these high standards, increasing regulatory requirements on the part of governments and the European Union are resulting in ever more complex dossiers. In the justified interest
With its Evening Primrose care range, Weleda has introduced a new lead plant in both facial and body care for the first time. The seven products specifically meet the needs of mature skin from the mid-fifties and help it to show its natural radiance.
of protecting consumers, the EU Commission, for example, is considering limiting the use of certain fragrances and, at the same time, extending disclosure obligations. Our formulations already satisfy the requirements: Weleda uses only natural essential oils which are subject to continual analytical and dermatological checks in terms of their high quality.
Innovation programme bears fruit Our Evening Primrose care range, consisting of three body care and three face care products, was just one of many product launches which took place in 2014. The ability to innovate is one of our stra-
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tegic pillars, which is why the Executive Board launched an innovation offensive in October 2013. The first successes were not long in coming, with several countries in Europe introducing the Evening Primrose care range in 2014. The range fully satisfied expectations and a large number of customers praised the texture and fragrance of the products as well as the form and colour of the packaging. The Evening Primrose Age Revitalising Body Oil received not one, but two prestigious awards: The “Victoire de la Beauté” in France and the beauty prize from Swedish magazine Amelia in the body oil category. The launch of Baby Derma White Mallow Nappy Change Cream rounded off the care range for highly sensitive skin introduced in the prior year. Sensitive skin and the need for special care products is something which is also of interest to adults. For this reason, we have planned to add to the fragrance-free Almond face care range, from spring 2015, a lotion, a creamy body wash and a hand cream for sensitive skin. The introduction of the Men Active shower gel in 2014 marked an addition to the Weleda range of shower lotions which was long-awaited by our male customers. The addition of the Arnica Sports shower gel is also planned from spring 2015. Our launch of three nail care pens in Germany, Austria and Switzerland at the beginning of 2014 marked a new milestone in our hand and nail care range. The pens will be introduced in further countries in 2015. The second half of 2015 will see, inter alia, additions to the Evening Primrose care range.
For babies’ sensitive skin: the White Mallow Nappy Change Cream rounds off the Baby Derma care range.
For athletes: the light gel texture and fresh fragrance of Arnica Sports Shower Gel are refreshing after sport.
For nails: a composition of valuable plant-based oils and their fine fragrance distinguishes the Weleda Nail Care Pens.
For mature skin: the Evening Primrose revitalising facial care products have been developed specially for the needs of skin from the mid-fifties.
For intensive facial care: the Wild Rose Smoothing Pearls were replaced in early 2015 by the modern glass ampoules of the seven-day Smoothing Beauty Treatment.
Economy
Communication activities intensified Weleda has stepped up communication activities to an unprecedented level. We placed a particular focus on outside advertising – in train stations, at bus stops and other well-frequented areas – and on television advertising. Through Weleda oases at book fairs, at city roadshows and at cultural events as well as at the Baden-Württemberg State Horticultural Show in Schwäbisch Gmünd with more than two million visitors, we gave many people the opportunity to discover and experience Weleda. The shop set up at the horticultural show site literally attracted customers like a magnet. In 2014, we made even more intensive use of the full range of the medium of television. Commercials marked the introduction of the Evening Primrose care range in Germany and Austria. The same commercial was broadcast in cinemas in Switzerland. The Internet is continuing to play an increasingly important role. We completely revamped our Internet presence in many countries and made it more user-friendly. Social media are making direct exchanges with new groups of consumers possible. In addition, magazines continue to be a cornerstone of communication with customers. Indeed, the Weleda magazine Werde, which looks at various issues relating to sustainable living, enjoys such a strong readership that we increased publication from twice yearly to four times a year.
The fragrant soul of plants
For sensitive skin: shower cream, lotion and hand cream contain precious organic almond oil, which cares for and soothes skin prone to irritation.
Fragrances are an integral component of our holistic care concept. This concept combines exclusively high-quality, natural fragrance ingredients to create compositions which make the Weleda fragrance landscape unique. Development is carried out in-house, from the idea through to the finished product. Fragrance is a key element of the experience offered by a product and represents the user’s direct connection with nature. Human beings have an intrinsic relationship with natural fragrances, as both come from the same source: nature. This is why these fragrances are able to touch people so much more deeply and fundamentally. From the anthro posophical perspective, plants express their very essence through their fragrance. This is why, in a natural fragrance composition, we always experience this fundamental element of the essence, even if subconsciously. Natural fragrances can vitalise, soothe, balance, earth, stimulate, calm fears or brighten the mood. Consequently, we take care to ensure that the fragrance suits the product involved and makes a har monious contribution to the care experience.
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Economy
Market development 2014
Germany
Percentages refer to the change in third-party turnover by company compared to the previous year (in the relevant local currency).
+7.5 %
Netherlands
– 1.0 %
France
+21.6 %
Sweden
+4.8 %
Russia
+47.7 %
Czech Republic
+12.3 %
Argentina
+39.8 %
USA
Spain
+5.4 %
– 6.7 %
Italy
+3.0 % Austria
+7.7 % UK
+6.2 % Brazil
+23.7 %
Switzerland
+0.7 %
Chile
+9.3 %
Australia
+15.4 %
New Zealand
+2.3 %
Weleda is present in the following countries:
AMERICA
EUROPE
AFRICA
ASIA
AUSTRALIA
Argentina, Brazil, Canada, Chile, Mexico, Peru, USA
Austria, Belgium, Bosnia, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxemburg, Macedonia, Netherlands, Norway, Poland, Portugal, Romania, Russia, Sweden, Switzerland, Serbia, Slovakia, Slovenia, Spain, UK, Ukraine
Egypt, Morocco
Azerbaijan, Hong Kong, Israel, Japan, Malaysia, South Korea, Taiwan, United Arab Emirates
Australia, New Zealand
Economy
Our markets: developing strategic key areas further Weleda maintained its focus on strong-growth markets in 2014. The competence area strategy was successfully implemented in pharmaceuticals. In natural and organic cosmetics, the focus was on innovation with the Evening Primrose care range.
After two years of consolidation, in 2014 the focus was on continu ing strategic work in the Weleda countries, building on the achievements already in place and developing successes further. With regard to market cultivation, this means concentrating our activities on markets which are indicating favourable conditions for steady growth. Alongside Germany, Switzerland and France, this applies in particular to Italy, Brazil, Japan and Russia. Find out more in the three selected country portraits on the following pages.
(page 41), we launched the Evening Primrose product line first in Germany, Switzerland, Austria, Italy, France and Sweden. The new care range is aimed in particular at women from their mid-fifties. Weleda remained true to its independent quality concept in the development of the range. This began with Goethean research on evening primrose, followed by the development of plant extracts, a comprehensive analysis and the highest standards applied to sourcing raw materials.
Competence areas and innovations
Making the brand tangible
In pharmaceuticals, the focus remains on OTC products in selected areas of competence. A strategy that paid off in the country markets in 2014 too: sales developed positively in the focus categories eyes, colds, and stress and sleep, supported by comprehensive communication methods (page 35). We worked in close cooperation with physicians and pharmacists in all markets, with particular success in France (page 45). Products for targeting stress did particularly well in Brazil, the biggest market in South America. The issue at hand now is to rigorously continue work on the ranges in the target markets, which will include work on additional products. The natural and organic cosmetics product segment was marked by one innovation in particular in 2014. Supported by comprehensive communication in the media and at points of sale
In 2015, we will continue to concentrate our activities on developing what has already been achieved, moving ahead with innovations and strengthening the Weleda brand in an increasingly difficult competitive environment. We are convinced that there is further potential to be tapped in positioning, marketing and communications. This gives us the opportunity to make the uniqueness of the Weleda messages and products understandable and tangible for consumers and partners all around the world.
Karen Staudt Consumer, USA
I discovered Weleda at the end of the 1990s through the Waldorf School in Garden City, New York. From Arnica Massage Oil to Salt Toothpaste, and everything in between, it’s definitely been an adventure exploring the many products Weleda has to offer to complement and support my healthy lifestyle.
43
44
Economy
Weleda Brazil: significant change in a growth market Two hundred million people live in Brazil, the biggest country in South America. In a market environment shaped by strong competitive pressures, we were able to put in place important success factors for the future. One of the things achieved was the reorganisation of the entire production for extemporaneous pharmaceuticals.
to substantial fluctuations, leading to dissatisfaction on the part of market partners. The highly regulated environment with an ever-increasing number of approval conditions from the health surveillance agency Anvisa posed a further challenge. Over the past few years, we have made substantial investments in procurement logistics, production processes and in quality assurance and control in line with international standards. This allowed supply availability for raw materials to be significantly improved. Positive feedback from the medical community affirms this development. Today, Weleda in Brazil has good contact with a growing community of physicians and pharmacists who appreciate Weleda’s quality and the diversity of therapeutic options. Our central focus is to continually improve the service provided to these partners. Weleda pharmacy – flagship store Santo Amaro in São Paulo, right next to the building of the anthroposophical society.
Production of extemporaneous pharmaceuticals in Brazil
Positive development in the year under review Following new regulatory requirements, in 2014 Weleda Brazil faced the task of demonstrating that it satisfies quality requirements, also in respect of raw materials production, in line with Good Manufacturing Practice. This meant that intensive analysis and reorganisational efforts were required. These efforts paid off, and the health authorities carried out their inspection without any negative findings. Indeed, the opposite was true, with Anvisa praising the documentation system put in place by Weleda Brazil for medicinal plant quality analysis. It said this system was unique and set a new standard. We were equally successful in completing the development and implementation of an end-to-end quality assurance system for extemporaneous pharmaceutical production at Weleda’s own two pharmacies and 12 franchise pharmacies. The inauguration of the newly formatted Santo Amaro pharmacy in São Paulo was a further milestone in April 2014. At the same time, this marked the start of the implementation of the new shop design in line with which all Weleda pharmacies will be reformatted in 2015.
Almost 70 per cent of Weleda’s turnover in the growth market Brazil comes from pharmaceuticals. A high proportion of this comes, in turn, from extemporaneous pharmaceutical products, i.e., pharmaceuticals produced to order following an individual prescription from a doctor, in 14 Weleda pharmacies. For this, we offer around 200 natural raw materials of plant, mineral or metal origin. This broad range makes it possible to ensure a high and individual level of therapeutic diversity in accordance with Weleda’s high standard of quality throughout the world. The certified, biodynamically cultivated Weleda medicinal plant garden is located at the São Roque site near São Paulo. This is where around 50 different types of plants are Making Weleda quality visible and tangible cultivated and then processed in pharmaceuticals production in São This is our goal in the biggest market in South America. In the year Paulo. Weleda Brazil imports the other raw materials it needs from under review, Weleda Brazil already made further investments in Schwäbisch Gmünd in Germany. marketing and in the broad distribution of pharmaceuticals and natural and organic cosmetics, in large pharmacy chains, for examThe challenge posed by supply logistics ple. These efforts will continue in the future. At the same time, In the past, supply availability for raw materials and the OTC phar- Weleda will work even more intensively with the medical commumaceuticals produced locally on an industrial basis has been subject nity in Brazil and extend the product training offering.
Economy
Weleda France: well on track Today, Weleda France is the most successful associated company. 2014 was a key year in which the Régate 2020 strategy for the future paid off. Double-digit growth in income, a profitable pharmaceuticals business and diverse communication measures rounded off the picture.
Régate 2020 Competition for patients and product users is intensifying. The Régate 2020 strategy has set the course: as a symbol and a project that looks to the future, it has defined comprehensive objectives and measures in the areas of identity, location organisation, work on ranges, marketing and communication. The results show that Weleda France is a formidable contender. The 2014 financial year was the company’s best to date.
Over 100,000 people follow the news from Weleda France on Facebook. And the “Bioty Tour” which started in 2014, is allowing consumers throughout the country to experience Weleda “up close and personal”, with luxurious hand and face massages.
Focus on future growth
The key objectives for 2015 are securing a further increase in the presence of the Weleda brand, expanding marketing and sales and increasing the number of points of sale. In addition, we will carry Ground-breaking work on range out more modernisation work on the production facilities in One of the priorities in France, too, was securing a further improve- Huningue and extend the offering of tours and product training for ment in the profitability of the pharmaceuticals business. To this doctors and midwives. end, we worked closely with the representatives of the anthroposophic medical community. In one process, the pharmaceuticals range was reduced from 2,000 to around 1,300 pharmaceuticals while retaining full therapeutic diversity. The results speak for themselves: after losses in previous years, Weleda France secured an exemplary result with growth in pharmaceuticals in the high double digits.
Shift in natural and organic cosmetics production With Group-wide consolidation of natural and organic cosmetics production, the gradual shift in production from Huningue in France to Schwäbisch Gmünd in Germany and Arlesheim in Switzerland began in 2012. Weleda France was thus faced with substantial economic and social challenges, challenges which it has mastered in an exceptional fashion. Good solutions were found for all employees whose jobs were affected. The team in France ended the year under review with a double-digit increase in income in natural and organic cosmetics. This has enabled Weleda to significantly increase its market share.
Dynamic communication A number of internal and external communication measures were implemented in 2014. The executive management of Weleda France personally presented the future strategy to the departments, supported by a specially developed motivational film. An e-mail newsletter produced every two weeks keeps staff up to date on the departments’ developments and successes. The investment in dynamic communication is paying off: an anonymous survey showed that there has been a sharp rise in employee satisfaction.
The Régate 2020 strategy for the future was developed by a team of 25 employees. The executive management presented the objectives and measures involved to the departments personally in 2014.
45
46
Economy
Weleda Russia: more than natural cosmetics This is Weleda’s message in the Russian market. A promise that is gaining recognition, as consumers appreciate the high quality of the products as much as the anthroposophical background. Weleda Russia continued resolutely along its successful growth track in 2014 and the young team is continuing to work ever more closely together.
tion. And we were successful: in addition to the locations in Moscow and St. Petersburg, there are now Weleda products at 400 new points of sale. Weleda sales representatives are now present locally in four regions of Russia. Training courses for sales staff helped boost sales, as did sales campaigns.
Intensive communication and a high level of recognition There were many different meetings and events with consumers and media representatives in 2014. Consumer promotions, such as in large shopping centres for example, gave users the opportunity to experience Weleda up close. The enthusiastic feedback showed that users appreciate both the quality of the products as well as Russian magazine InStyle awarded Weleda Pomegranate Regenerating the idea behind Weleda. As in previous years, we invited Russian Body Oil “Bestbeautybuys 2014”. journalists to Schwäbisch Gmünd to enable them to experience Weleda culture and the product universe directly. In addition to tours of the medicinal plant garden and production, the journalists received in-depth information on the use of natural and organic Attractive market The team in Russia got 2014 off to an enthusiastic start, achieving cosmetics. With 48 per cent growth in turnover on a currency-adjusted double-digit growth as in the previous years, despite increased competition from both domestic and foreign companies. Weleda is basis, Weleda Russia had a successful end to the year. Growth an established quality brand in Russia, with sales centres in Mos- momentum in the pharmacy channel remains above the market cow and St. Petersburg and well-functioning distribution channels average. A result that motivates us to continue along the same in pharmacies, premium supermarkets, perfume stores and organic track in 2015. shops. In a business environment marked by openness, we developed a confident growth strategy for the coming years.
Bringing Weleda culture to life A key focus in the year under review was to anchor Weleda’s values and management principles even more firmly within the organi sation. The aim was to develop within the new team a culture of cooperation both internally and externally, with this culture going beyond mere performance and results. Each month, the 30 employees attended training courses which developed the important themes of trust and responsibility. The positive feedback received shows that, together, the team is well on its way.
Market presence extended The change in the political atmosphere in winter 2014 raised some issues. Consumer behaviour was just as difficult to anticipate as currency stability and import legislation. Despite this, we decided to stick rigorously with our chosen strategy and expand distribu-
Product stand in a Moscow shopping centre.
Financial report
Third-party turnover of national companies
Third-party turnover per company Currency
Structure of third-party turnover per company
Employees (FTE)
2014
Change from previous year in local currency
Pharmaceuticals
Natural and organic cosmetics
2014
2013
+0.7%
43%
57%
302
285
Switzerland
in 1,000 CHF
42,593
Weleda AG, Arlesheim
in 1,000 EUR
35,066
Germany
in 1,000 EUR
164,154
+7.5%
24%
76%
768
704
in 1,000 EUR
72,323
+21.6%
46%
54%
333
330
in 1,000 EUR
15,128
–1.0%
17%
83%
68
71
United Kingdom
in 1,000 GBP
6,126
+6.2%
30%
70%
57
61
Weleda UK Ltd, Ilkeston
in 1,000 EUR
7,600
Italy
in 1,000 EUR
11,286
+3.0%
43%
57%
35
35
in 1,000 EUR
13,179
+7.7%
16%
84%
18
19
Sweden
in 1,000 SEK
65,036
+4.8%
12%
88%
21
26
Weleda AB, Stockholm
in 1,000 EUR
7,149
Spain
in 1,000 EUR
6,110
+5.4%
7%
93%
43
40
Czech Republic
in 1,000 CZK
42,934
+12.3%
2%
98%
16
17
Weleda spol. s.r.o., Prague
in 1,000 EUR
1,559
Russia
in 1,000 RUB
140,298
+47.7%
4%
96%
29
20
Weleda East GmbH, Moscow
in 1,000 EUR
2,789
USA (North America)
in 1,000 USD
15,685
–6.7%
7%
93%
26
32
Weleda Inc., Irvington, NY
in 1,000 EUR
11,819
Argentina
in 1,000 ARS
21,849
+39.8%
54%
46%
44
39
Weleda S.A. Argentina, Buenos Aires
in 1,000 EUR
2,034
Brazil
in 1,000 BRL
24,659
+23.7%
68%
32%
129
91
Weleda do Brasil Ltda., São Paulo
in 1,000 EUR
7,906
Chile
in 1,000 CLP
1,721,484
+9.3%
44%
56%
40
36
Weleda Ltda., Santiago de Chile
in 1,000 EUR
2,267
New Zealand
in 1,000 NZD
3,774
+2.3%
61%
39%
25
26
Weleda (NZ) Ltd, Havelock North
in 1,000 EUR
2,359
Australia
in 1,000 AUD
2,298
+15.4%
16%
84%
11
9
Weleda Australia Pty Ltd., Warriewood
in 1,000 EUR
1,561 0
40
1,965
1,881
Weleda AG, Schwäbisch Gmünd France Weleda S.A., Huningue Netherlands Weleda Benelux SE, Zoetermeer
Weleda Italia S.r.l., Milan Austria Weleda Ges.m.b.H. & Co. KG, Vienna
Weleda S.A.U., Madrid
Weleda Naturals Weleda Naturals GmbH, Schwäbisch Gmünd Total
in 1,000 EUR
364,289
+8,2 %
30 %
70 %
47
48
Ökonomie
“SUBCONSCIOUSLY, EVERYBODY CAN TELL IF A FRAGRANCE IS GENUINE OR NOT.” DR LEO ZÄNGERLE, 52 Head of the Weleda Fragrance Competence Centre in Arlesheim (Switzerland)
Ten years ago, Leandro, Alex, Alice and their colleagues scored a major success. At the time, they caught a supplier who was trying to pass off cheap, merely nature-identical rosemary oil as “100 per cent pure and natural”. They managed to prove to the supplier in detail that he had made a small quantity of genuine oil go further by adding synthetic compounds. The seller was blocked and there have been no such major attempts at fraud since then. “Suppliers know now who they are dealing with”, says Dr Leo Zängerle, Head of the Weleda Fragrance Competence Centre in Arlesheim (Switzer land). He is proud of the highly specialised gas chromatography mass spectrometers, all of which have their own name. After all, they work closely together. In a fraction of a second, a fragrance will determine whether someone perceives a product as being harmonious and good for them. “The olfactory nerve that comes into contact with the air you breathe in the mucous membrane of the nose is a bulb where fragrance molecules ‘dock’ directly”, explains Zängerle, who has been with Weleda for 15 years and whose doctorate focused on nerve cell communication. “Subconsciously, everybody can tell if a fragrance is genuine or not.” And since, according to anthroposo phical thinking, the fragrance of a plant is the expression of the spirituality of nature, pure essential oils are capable of touching
the soul of a person very deeply. In order to guarantee this purity, a very precise physico-chemical analysis is carried out for all fragrance ingredients and then compared with the goods ultimately delivered, a very involved and time-consuming procedure which sets Weleda apart from most of its competitors. In addition, all fragrances for cosmetic products are developed in the Fragrance Competence Centre, which was founded eight years ago. They not only smell good, but are also composed on the basis of aromatherapeutic aspects. Ultimately, the aim of each of the Weleda care ranges is to support people in specific situations, as do the Evening Primrose products for women from age 55, for example, which were launched in 2014. Since evening primrose essential oil “can’t be bought”, Weleda’s two internal perfumers and their team were inspired to create their own interpretation. This unique new fragrance includes, inter alia, cardamom oil for freshness and magnolia leaf oil, a novelty, with its leafy green notes that open the heart and clear the mind at the same time. The most complex of Weleda’s fragrances to date, it reflects its target group’s rich diversity of experience and, with its powerful accents, stimulates sensory perception. The fragrance may even have an effect via the skin: last year, scientists discovered receptors in the outer layer similar to those found in the nose.
Financial report
General economic development in 2014 and forecast for 2015
cent (2013: increase of 4.2 per cent). The D-A-CH region recorded Business performance The 2014 financial year was marked by further solid growth, the 8.5 per cent growth in turnover. The launch of the Evening Primexpansion of marketing activities and increased innovation. Cou- rose care range as well as the shower gel for men contributed pled with continued healthy discipline on costs, both the result for substantially to this result. the year and cash flow were once again extremely positive at Group level in 2014. There was a further significant reduction in net debt, Operating result enabling Weleda to continue to enhance its independence. The The operating result (EBIT) increased by EUR 1.1 million year- solid basis created over recent years means that the company can on-year to EUR 35.1 million (2013: EUR 34.0 million). The EBIT marlook to a future it can shape with confidence. gin contracted marginally to 9.6 per cent (2013: 10.1 per cent). At 79 per cent (2013: 78 per cent), the gross profit margin increased Turnover slightly. Operating expenses increased by 10.1 per cent or EUR 23.9 The Weleda Group posted turnover of EUR 364.3 million in the 2014 million year-on-year to EUR 259.5 million, due primarily to higher financial year, up from EUR 336.7 million in the prior year. This rep- material costs in connection with the marketing and innovation resents growth of approximately 8.2 per cent, or EUR 27.6 million, offensive, as well as the 13.0 per cent rise in employee income to compared with the prior-year figure (adjusted for exchange rates: EUR 132.1 million. 8.6 per cent or EUR 29.0 million), and means that the targeted growth in turnover was comfortably achieved. Result for the year The result before tax increased by EUR 8.7 million to EUR 22.3 milTurnover development by market and region lion (2013: EUR 13.6 million). The financial result improved by EUR Approximately 55 per cent of sales revenues (2013: 57 per cent) 0.5 million to EUR –4.9 million (2013: EUR –5.4 million). Improved were generated in the D-A-CH region (Germany, Austria and Swit- business performance and different profit distribution within the zerland). Turnover in this region increased by 6.0 per cent to EUR Group led to an increase in income taxes to EUR 12.6 million (2013: 202.0 million (2013: EUR 190.5 million). In the other regions, sales EUR 8.9 million). At EUR 6.7 million, Germany accounted for the revenues registered an overall increase of 11.0 per cent to EUR biggest share of income taxes. At EUR 9.8 million, the consolidated 162.3 million (2013: EUR 146.2 million), with the main share of this result for the year was thus twice as high as the prior year. increase achieved in Western Europe.
Financial and assets situation Turnover development in the business segments Natural and organic cosmetics accounted for 69.7 per cent of global turnover (2013: 70.2 per cent). The share of pharmaceuticals increased marginally to 30.3 per cent (2013: 29.8 per cent). Global turnover in pharmaceuticals developed positively and was up 9.9 per cent (2013: 5.0 per cent) to EUR 110.3 million. In the D-A-CH region, which accounts for around 50 per cent of turnover, figures were at the prior-year level. This was due, in particular, to a poor cold season at the beginning of 2014. The Western Europe region recorded a clear 32.6 per cent increase in turnover, primarily through increases in the French market. Global turnover in natural and organic cosmetics was significantly up on the prior year, with an overall increase of 7.5 per
Cash flow from operating activities increased by EUR 11.6 million to EUR 48.1 million (2013: EUR 36.5 million). Cash flow from investing activities increased by EUR 5.1 million year-on-year to EUR 6.6 million (2013: EUR 1.5 million). Of the gross investments of EUR 7.1 million, EUR 1.3 million were in intangible assets, EUR 5.4 million in property, plant and equipment, and EUR 0.4 million in financial assets. Almost 50 per cent of investments were in the two main production sites in Schwäbisch Gmünd and Arlesheim. Given the continued improvement in results and the higher level of investment activity, cash flow after investing activities amounted to EUR 41.5 million (2013: EUR 35.0 million). Financial liabilities were reduced by EUR 17.9 million to EUR 52.3 million (2013: EUR 70.2 million). Cash and cash equivalents,
49
50
Financial report
including securities, rose by EUR 22.0 million as at year end to EUR 43.2 million. Net debt fell by EUR 39.9 million to EUR 9.1 million (2013: EUR 49.0 million). The equity ratio contracted slightly by 0.2 percentage points to 33.4 per cent (2013: 33.6 per cent).
regard to pharmaceuticals, we expect turnover to dip in Switzerland following the discontinuation of turnover from Iscador. In light of this, the target is growth in overall turnover of around 3 per cent versus 2014, alongside a stable operating result.
Forecast 2015 Given the current market situation, the innovations planned and the market presence of Weleda, we continue to see good growth opportunities in Germany, Austria, France, Japan, Brazil and Russia. We expect lower growth on average in the other countries. With
Joyce Jonathan Singer, France
Weleda is an experience like a natural sensation, like a sweet medicine. When I use these completely natural products, I know I am respecting nature in the same way I respect myself. They accompany me in my daily routine, and they help me feel better in my private and professional life. A little cream before I go to sleep, and in the morning I wake up with a sense of physical and spiritual well-being.
Financial report
Turnover at exchange rates valid on closing date of financial statements
Turnover adjusted for changes in exchange rates
Investments in intangible assets and property, plant and equipment
All values in million EUR
All values in million EUR
All values in million EUR
2014
364.3 +8.2%
2014
+4.4%
2013
336.7
2013
322.5
364.3 +8.6%
2014
+5.4%
2013
335.3 318.1
+4.9%
2012
+3.8%
2012
2011
307.5
–0.3%
2011
306.5
–0.2%
2011
2010
308.3
+11.1%
2010
307.1
+11.1%
2010
2012
Change from the previous year
At exchange rates valid on December 31st 2014 Change from the previous year adjusted for changes in exchange rates
Operating result (EBIT)
Consolidated result attributable to shareholders of Weleda AG
All values in million EUR
6.9 4.1 8.6 18.9 16.5
All values in million EUR 2014 2013 2012
10.6
2011 1.3 2010
35.1
2014
34.0
2013
4.2 0.8
2012 2011
9.1
9.3
2010
–8.3 –3.8
Market output Weleda Group 2014 by region (in million EUR )
Natural and organic cosmetics and pharmaceuticals Weleda Group 2014
Total EUR 364.3 million
Total EUR 364.3 million Western Europe France, UK, Benelux
95.5 +16.1% * Weleda natural and organic cosmetics 69.7%
Weleda pharmaceuticals
Northern, Central and Eastern Europe Sweden, Russia, Czech Republic
16.6 +12.0%* North America 11.8 – 6.7%*
30.3%
D-A-CH
South America, Italy, Spain 29.6 +11.0% *
Germany, Austria, Switzerland
202.0 +5.8% * * Change from the previous year adjusted for changes in exchange rates
Asia/Pacific 8.8 +10.8% *
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52
“IT’S A REAL HONOUR TO BE ABLE TO PL AY A PART IN THIS!” PIERRE KAPPLER, 52
Head of Medicinal Plant Cul tivation in Bruderholz near Arlesheim (Switzerland) and Huningue (France) as we ll as of the Weleda show garden in Arlesheim
The citrus thyme is covered by a layer of frost. Only a few snowdrops have so far braved the February sun; otherwise, the Weleda show garden in Arlesheim near Basel appears to be still deep in its winter slumber. However, when Pierre Kappler takes a look around him, there’s only one thing he sees: “Work!” Only two weeks left, then things will be really hotting up for the head gardener and his five-strong team here and in the two medicinal plant gardens in nearby Bruderholz and in Bouxwiller 25 kilometres away in France, with pruning and the first harvest (greater burdock for Venadoron), followed by sowing in the greenhouse. The calendula seeds are bedded directly in March; the primroses can be picked in April; the perennials are sown in May. Harvest follows harvest: in August, ferns, through to cherry laurel leaves, hawthorn and pumpkin fruits in October. And from end of February, when the frost is softening, to November, when it returns, the team’s energies are focussed on one thing and one thing only: rigorous garden maintenance. “If we act early enough to make sure our cultures are free of weeds”, says Pierre Kappler, “then we have less weeding that needs to be done.” The 52-year-old learned to love plants as a child, as his parents owned a nursery in Alsace. And it is from there, in his “wild oasis”, that this sporty French-Swiss makes the 45-minute journey
by bike to Arlesheim every day. Pierre Kappler obtained his theoretical knowledge of biodynamic agriculture from an intensive course of study at the Goetheanum in Dornach. His practical knowledge has been built up through his work “on the ground” at the two medicinal plant gardens. “When I’m all alone in the gardens in the early morning and the sun is coming up, the connection plants have to the ground and to light becomes obvious.” Sometimes, when he is mixing a biodynamic preparation of horn manure and horn silica, he might see a weasel, or a deer or a fox. Kappler has noticed that biodynamic preparations improve the resilience of the plants and soil fertility – the healthier it is, the better the plants and, as a result, their actives thrive. “If we work in a way that is harmonious with nature, then the treatments and natural and organic cosmetics are also harmonious with people”, says Kappler. “It’s a real honour to be able to play a part in this.” And to let things take their course in winter: “People always think nothing happens in winter, but these are the months when the ground is at its most active. Microorganisms and fungi transform dead plant material into nutrients that will be made available to the plants for new growth.” This is also true of the mandrake roots planted in 2013. A few more years are needed before harvesting can begin. Years in which it is primarily the ground which does all the work.
53
Consolidated Annual Financial Report 2014 Weleda Group Table of contents Balance sheet of the Weleda Group
Page 54
Income statement of the Weleda Group
Page 55
Cash flow statement of the Weleda Group
Page 56
Consolidated statement of shareholders’ equity of the Weleda Group
Page 57
Notes to the consolidated financial statements of the Weleda Group
Page 58
Report of the statutory auditor
Page 72
Auditors and Group Auditors PricewaterhouseCoopers Ltd, Münchenstein, Switzerland
Contact person for shareholders Paul Mackay, Chairman of the Board of Directors
Corporate headquarters Weleda AG Dychweg 14, 4144 Arlesheim, Switzerland Tel. +41 61 705 21 21, www.weleda.com, www.weleda.ch
Secretariat and share register Sabine Lexen Tel. +41 61 705 22 02
Subsidiary in Germany Weleda AG Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany Tel. +49 7171 91 90, www.weleda.de
54
Consolidated annual financial report of the Weleda Group
Balance sheet of the Weleda Group Assets
Notes
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
Non-current assets Intangible assets
1
5,237
5,993
Property, plant and equipment
1
70,247
78,923
Financial assets
1
Total non-current assets
2,856
2,866
78,340
87,782
Current assets Inventories
2
77,393
68,678
Trade receivables
3
58,249
52,924
Other current receivables
4
5,276
3,584
2,676
2,903
Deferred charges and prepaid expenses Marketable securities
155
125
43,079
21,081
Total current assets
186,828
149,295
Total assets
265,168
237,077
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
3,800
Cash and cash equivalents
Shareholders’ equity and liabilities
Notes
Shareholders’ equity Share capital
3,800
Non-voting share capital
7,600
7,600
Capital reserves
9,600
9,600
Retained earnings
64,964
55,366
Shareholders’ equity excl. non-controlling interests
85,964
76,366
Non-controlling interests Shareholders’ equity incl. non-controlling interests
2,525
3,360
88,489
79,726
Current liabilities Trade payables
5
Current financial liabilities
25,929
21,525
14,261
10,608
Other current liabilities
6
11,705
8,989
Current provisions
7
9,065
19,333
Accrued charges and deferred income
19,670
2,813
Total current liabilities
80,630
63,268
59,625
Non-current liabilities Non-current financial liabilities
8
38,044
Non-current provisions
7
58,005
34,458
96,049
94,083
Total liabilities
176,679
157,351
Total shareholders’ equity and liabilities
265,168
237,077
Total non-current liabilities
Consolidated annual financial report of the Weleda Group
Income statement of the Weleda Group Notes
2014 in 1,000 EUR
2013 in 1,000 EUR
9
364,289
336,700
3,540
1,414
367,829
338,114
–79,703
–75,564
288,126
262,550
10
6,460
7,047
Employee income and social expenditure
11
–132,142
–116,916
Depreciation and amortisation on non-current assets
12
–9,921
–18,489
Other operating expenses
13
–117,403
–100,209
–259,466
–235,614
35,120
33,983
–4,891
–5,413
30,229
28,570
–7,901
–15,000
22,328
13,570
Net sales
Changes in inventories of finished goods and work in progress Total sales
Cost of goods sold Gross profit
Other income
Total operating expenditure
Operating result (EBIT)
Financial result
14
Ordinary result before tax
Extraordinary result
15
Result before tax (EBT) Income taxes
–12,566
–8,898
Consolidated result for the year
9,762
4,672
Attributable to shareholders of Weleda AG
9,293
4,187
469
485
Attributable to non-controlling interests
16
55
56
Consolidated annual financial report of the Weleda Group
Cash flow statement of the Weleda Group
2014 in 1,000 EUR
Consolidated result for the year
9,762
4,672
Depreciation and amortisation and value adjustments on non-current assets
9,926
19,643
12,414
17,556
Changes in provisions Gain/loss from the disposal of non-current assets
93
–1,828
Changes in trade receivables
–5,243
–8,977
Changes in inventories
–8,382
–732
Changes in other receivables and deferred charges/prepaid expenses
–1,169
453
Changes in trade payables
4,352
3,872
19,544
268
6,195
726
Changes in other current liabilities and accrued charges/deferred income Other items not affecting liquidity Currency and valuation influences not affecting liquidity
694
957
Gain/loss from associated companies
–102
–111
Cash flow from operating activities
48,084
36,499
Investments in property, plant and equipment
–5,426
–3,408
Divestments of property, plant and equipment
82
3,455
Investments in financial assets
–422
–1,053
Divestments of financial assets
414
237
Investments in intangible assets
–1,245
–741
Cash flow from investing activities
–6,597
–1,510
–601
0
Dividend payments to shareholders/non-controlling interests Net repayment of current financial liabilities Net repayment of non-current financial liabilities Change in own shares and non-voting shares
–10,144
–6,971
–8,581
–18,915
–236
–56
–19,562
–25,942
Total cash flow
21,925
9,047
Cash and cash equivalents at start of reporting period1
21,206
12,490
Total cash flow
21,925
9,047
Cash flow from financing activities
Currency translation effect on cash and cash equivalents1 Cash and cash equivalents at end of period1 1
2013 in 1,000 EUR
Includes securities
103
–331
43,234
21,206
Consolidated annual financial report of the Weleda Group
Consolidated statement of shareholders’ equity of the Weleda Group as at December 31st
Consolidated statement of shareholders’ equity in 1,000 EUR Shareholders’ equity as at January 1st 2013
Company capital1
Capital reserves (agio)
Cumulated currency difference2
Other retained earnings
Total retained earnings
Total excl. noncontrolling interests
Noncontrolling interests
Total incl. noncontrolling interests
11,400
9,600
–485
53,077
52,592
73,592
3,028
76,620
Loss/profit for the year Currency translation effect/Other Shareholders' equity as at December 31st 2013
11,400
9,600
4,187
4,187
4,187
485
4,672
–1,473
60
–1,413
–1,413
–153
–1,566
–1,958
57,324
55,366
76,366
3,360
79,726
9,293
9,293
9,293
469
9,762
–573
–573
–573
–28
–601
331
547
878
878
–1,276
–398
–1,627
66,591
64,964
85,964
2,525
88,489
Loss/profit for the year Dividends Currency translation effect/Other3 Shareholders' equity as at December 31st 2014 1
11,400
9,600
ompany capital is broken down as follows: C 6,880 registered shares at CHF 112.50 3,984 registered shares at CHF 125.00 3,478 registered shares at CHF 1,000.00 19,000 registered non-voting shares at CHF 500.00 There was no change in the company capital versus the prior year.
2
Includes reserve for own shares
3
ther retained earnings includes, under Other, modification to value adjustments in France O as well as goodwill/badwill on the buyout of non-controlling interests.
57
58
Consolidated annual financial report of the Weleda Group
Notes to the consolidated financial statements of the Weleda Group Consolidation principles
General remarks Uniform accounting standards (Weleda Accounting Manual) were introduced as of January 1st 2014. These accounting standards satisfy the requirements of the Swiss Code of Obligations (CO). The financial statements have been prepared in accordance with these standards. The previous year has not been restated. The adjustments of balance sheet items necessary as at January 1st 2014 have been booked through the extraordinary result (see Notes to the balance sheet and the income statement, section 15). Restatement in line with the new accounting legislation is scheduled for January 1st 2015. The consolidated financial statements of the Weleda Group comply with the law and the articles of incorporation. Certain items of the balance sheet as well as the income statement have been summarised in order to provide the reader with a better overview. These items are explained in detail in the Notes.
Consistency The introduction of the Weleda Accounting Manual means that accounting consistency is no longer ensured. The impact on the income statement is reflected in the extraordinary result. The introduction of the Weleda Accounting Manual has also led to the reclassification of individual positions in the balance sheet.
Scope of consolidation In addition to Weleda AG Arlesheim and its branch office Weleda AG Schwäbisch Gmünd, 19 subsidiaries were fully consolidated within the Weleda Group statements. These companies are, without exception, related to each other and are under the control of Weleda AG Arlesheim. Weleda AG has direct or indirect holdings of more than 50 per cent. The non-controlling interest in Japan was consolidated using the equity method.
Consolidation method The consolidated financial statements were based on the annual statements of the Group companies as at December 31st 2014, which were prepared in accordance with the Weleda Accounting Manual. The consolidation time period was the calendar year. Capital consolidation was carried out in accordance with the Anglo-Saxon purchase method. For the fully consolidated companies, assets, liabilities, expenses and income have been stated at 100 per cent. Non-controlling interests in consolidated shareholders’ equity and profit/loss for the year have been disclosed separately. The carrying amounts of equity holdings of the parent company were offset against the available shareholders’ equity values of the subsidiary companies. In accordance with the full consolidation method, assets and liabilities as well as expenses and income also of those companies in which a third party is involved were included in full in the Group accounts. Third parties’ shares of shareholders’ equity and of the final results of consolidated companies have been disclosed separately.
Consolidated annual financial report of the Weleda Group
Currency translation The financial statements of consolidated companies in foreign currencies have been translated as follows: current assets, non-current assets and liabilities translated at year-end rates (rate on balance sheet date); shareholders’ equity at historical rates. The income statement and the cash flow statement have been translated using average rates for the year. The following currency exchange rates have been applied:
2014 rates on balance sheet date
2014 average rates
1 CHF (Swiss franc)
0.832
0.823
0.816
0.812
1 USD (US dollar)
0.826
0.754
0.726
0.753
Year-end rates in EUR
1 GBP (pound sterling) 100 SEK (Swedish krona) 1 BRL (Brazilian real)
2013 rates on balance sheet date
2013 average rates
1.289
1.241
1.202
1.178
10.557
10.993
11.299
11.563
0.311
0.321
0.308
0.350
Intragroup transactions, balances and intercompany profits All intragroup transactions and balances were eliminated, as were all intercompany profits stated in the balance sheet.
Balance sheet and valuation principles In general, assets and liabilities have been valued on an individual basis in so far as they are material and cannot be treated together as a group as is customary due to their similarity.
Realisation of turnover Sales were recognised on the transfer of risks and benefits to customers or upon provision of the service. This generally corresponded to delivery of the products.
59
60
Consolidated annual financial report of the Weleda Group
Non-current assets Acquired intangible assets were calculated at the cost of acquisition, less amortisation. Property, plant and equipment were recognised at acquisition or production cost minus depreciation. Small-value intangible assets and property, plant and equipment with a value of less than EUR 1,000 were depreciated in full in the year they were added. Financial assets were included at the cost of acquisition. Equity holdings have been consolidated using the equity method. Where there have been indications of non-current assets being overvalued, carrying values have been reviewed and, where necessary, adjusted.
Current assets Receivables and other non-current asset items were reported at their nominal values. General risk of loss and individual credit risk have been accounted for on the basis of specific charges. The valuation of inventories was conducted on the basis of acquisition or production cost while observing the principle of lower of cost or market.
Liabilities Liabilities were included on the basis of nominal value. Provisions for pension plans and similar obligations have been calculated based on actuarial principles. The remaining provisions covered all recognisable risks for undetermined obligations. Provisions were included at the respective amount at which they are to be repaid.
Leasing transactions Leasing and rental contracts were recognised on the basis of legal ownership. Accordingly, expenses as lessee were recognised on an accrual basis, whereas the leased or rented objects themselves have not been recognised. Long-term rental and leasing obligations have been included in the Notes.
Consolidated annual financial report of the Weleda Group
Notes to the balance sheet and the income statement
1 Non-current assets in 1,000 EUR
as at January 1st 2013
Intangible assets
Property, plant and equipment
Financial assets
Total Non-current assets
7,250
94,235
4,640
106,125
Currency translation effect
–13
–1,161
–207
–1,381
Additions
741
3,555
1,163
5,459
Disposals
0
–1,857
–242
–2,099
Change in scope of consolidation
0
655
–1,334
–679
Reclassification
0
0
0
0
Depreciation and amortisation and value adjustments
–1,985
–16,504
–1,154
–19,643
as at December 31st 2013
5,993
78,923
2,866
87,782
20
730
3
753
Additions
Currency translation effect
1,281
5,651
525
7,457
Disposals
–29
–520
–533
–1,082
–9
9
0
0
–1,849
–8,072
–5
–9,926
–170
–6,474
0
–6,644
5,237
70,247
2,856
78,340
Reclassification Depreciation and amortisation and value adjustments Introduction Weleda Accounting Manual as at December 31 2014 st
Intangible assets mainly concern software and associated projects as well as goodwill for the purchase of a pharmacy in Brazil. The increase in property, plant and equipment consists primarily of investment projects as well as expenditure on replacements and rationalisation in Germany, France and Switzerland. The largest share of the amount under Property, plant and equipment, totalling EUR 17 million (prior year: EUR 25 million), relates to the branch office in Germany. Switzerland accounts for EUR 23 million (prior year: EUR 24 million). Weleda France had property, plant and equipment totalling EUR 11 million (prior year: EUR 11 million). The impact of the introduction of the Weleda Accounting Manual has been included in the extraordinary result (see section 15). Financial assets include all non-controlling interests as well as non-current amounts due from companies in which a non-controlling interest is held and from third parties.
61
62
Consolidated annual financial report of the Weleda Group
2 Inventories 31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
Raw, auxiliary and operating materials
22,446
23,694
Unfinished products
17,010
8,103
Finished products
12,681
18,564
Trade goods
34,192
26,721
Value adjustments on inventories
–8,936
–8,404
Total inventories
77,393
68,678
Following the introduction of the Weleda Accounting Manual, part of inventories in Germany were no longer valued using the LIFO method (last in – first out), but were valued on a FIFO (first in – first out) basis (section 15).
3 Trade receivables
From third parties
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
57,750
52,581
From companies in which a non-controlling interest is held
367
343
From shareholders
132
0
58,249
52,924
Total trade receivables
Consolidated annual financial report of the Weleda Group
4 Other current receivables 31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
4,412
2,970
From third parties From companies in which a non-controlling interest is held and shareholders
9
9
855
605
5,276
3,584
2014 in 1,000 EUR
2013 in 1,000 EUR
424
380
26
59
Own shares and non-voting shares Total other current receivables
Own shares and non-voting shares
Stock of own shares (in number: 218, previous year: 194) as at Jan. 1st Purchase of own shares (in number: 17, previous year: 32) Sale of own shares (in number: 214, previous year: 8) Stock of own shares (in number: 21, previous year: 218) as at Dec. 31st Stock of own non-voting shares (in number: 186, previous year: 179) as at Jan. 1st
–438
–15
12
424
181
177
Purchase of own non-voting shares (in number: 974, previous year: 12)
1,018
9
Sale of own non-voting shares (in number: 342, previous year: 5)
–356
–5
Stock of own non-voting shares (in number: 818, previous year: 186) as at Dec. 31st
843
181
Total own shares and non-voting shares as at Dec. 31st
855
605
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
To third parties
25,929
21,525
Total trade payables
25,929
21,525
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
11,642
8,207
Shares and non-voting shares were bought respectively sold at 250 per cent of the nominal value.
5 Trade payables
6 Other current liabilities
To third parties To shareholders Total other current liabilities
63
782
11,705
8,989
63
64
Consolidated annual financial report of the Weleda Group
7 Provisions in 1,000 EUR
Pension provisions
Tax provisions2
Other provisions1
Total Provisions
18,743
3,041
14,678
36,462
899
4,228
24,118
29,245
Utilisation
–244
–1,065
–9,238
–10,547
Decrease
–247
0
–896
–1,143
as at January 1st 2013 Increase
Currency translation effect
–77
–59
–90
–226
as at December 31st 2013
19,074
6,145
28,572
53,791
8,314
644
22,969
31,927
–316
–6,145
–10,377
–16,838
0
0
–2,676
–2,676
Currency translation effect
362
–17
521
866
as at December 31 2014
27,434
627
39,009
67,070
Increase Utilisation Decrease
st
of which current provisions of which non-current provisions
0
0
9,065
9,065
27,434
627
29,944
58,005
1
ther provisions includes, inter alia, currency provisions, provisions for strategic projects and procurement for replacements following the sale of the Iscador brand. O In the prior year, other provisions also included vacation entitlement that had not yet been used, overtime and severance pay, which are now recognised in Accrued charges and deferred income under the new Accounting Manual.
2
In 2013, this item also included an amount for current taxes that had not yet been paid. The introduction of the new Accounting Manual resulted in this amount being recognised in Accrued charges and deferred income. As at end 2014, Tax provisions only included provisions for deferred tax.
Pension liabilities were created in France following the introduction of the Accounting Manual. These were not included in financial statements in previous years (see section 15). Further, additional pension provisions were created following a new expert assessment in the UK.
Consolidated annual financial report of the Weleda Group
8 Non-current financial liabilities Non-current financial liabilities in 1,000 EUR
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
Bank loans
16,572
26,443
Funds and trustee loans
19,468
31,213
Other non-current financial liabilities
2,004
1,969
38,044
59,625
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
Residual maturity 1 to 5 years
36,140
49,572
Residual maturity over 5 years
1,904
10,053
38,044
59,625
Total
Maturity
Total
All financial liabilities due within the following 12 months were disclosed in current financial liabilities.
65
66
Consolidated annual financial report of the Weleda Group
9 Net sales Product groups
2014 in 1,000 EUR
2014 %
2013 in 1,000 EUR
2013 %
Natural and organic cosmetics
254,022
69.7
236,327
70.2
Pharmaceuticals
110,267
30.3
100,373
29.8
364,289
100
336,700
100
2014 in 1,000 EUR
2014 %
2013 in 1,000 EUR
2013 %
Net sales
Regions
201,983
55.5
190,485
56.6
Western Europe (France, UK, Benelux)
D-A-CH (Germany, Austria, Switzerland)
95,532
26.2
81,946
24.3
Northern, Central and Eastern Europe (Scandinavia, Russia, Czech Republic)
16,542
4.6
15,555
4.6
North America
11,819
3.2
12,656
3.8
29,604
8.1
28,066
8.3
8,809
2.4
7,992
2.4
364,289
100
336,700
100
South America, Italy, Spain Asia/Pacific Net sales
10 Other income
Total other income
Other income includes rental income and gains from the sale of non-current assets.
2014 in 1,000 EUR
2013 in 1,000 EUR
6,460
7,047
Consolidated annual financial report of the Weleda Group
11 Employee income and social expenditure 2014 in 1,000 EUR
2013 in 1,000 EUR
Employee income
99,167
91,200
Social contributions and pension fund
32,975
25,716
132,142
116,916
2014 in 1,000 EUR
2013 in 1,000 EUR
Total expenses
12 Depreciation and amortisation
Intangible assets
1,849
1,985
Property, plant and equipment
8,072
16,504
Total depreciation and amortisation
9,921
18,489
2014 in 1,000 EUR
2013 in 1,000 EUR
Sales and distribution costs
70,491
58,256
Operating costs
21,103
19,019
Administrative costs
20,317
16,113
13 Other operating expenses
Contributions, levies, property and capital taxes
2,722
2,898
Other expenses
2,770
3,923
117,403
100,209
Total other operating expenses
Other operating expenses includes, but is not limited to, sales and distribution costs such as advertising and market communication, sales documents, material costs of external sales and all postal costs. This item also includes costs for building and machine maintenance, legal and consulting costs, IT expenses and costs for third-party research as well as other expenses. The item Other expenses includes donations of EUR 1.5 million to the School of Spiritual Science in Dornach.
67
68
Consolidated annual financial report of the Weleda Group
14 Financial result 2014 in 1,000 EUR
Interest and similar income
2013 in 1,000 EUR
189
139
Interest and similar expenses
–3,550
–4,390
Exchange rate differences, net
–1,525
–970
–5
–192
–4,891
–5,413
Value adjustments financial assets Total financial result
The item Interest and similar expenses includes interest in the amount of EUR 1.1 million (prior year: EUR 1.6 million) for the GLS fund in Germany and the Swiss trustee loans.
15 Extraordinary result This item contains the following adjustments in the year under review, made necessary by the new Weleda Accounting Manual:
Value adjustments as at January 1st 2014
Non-current assets
in 1,000 EUR
Section
–6,644
1
Inventories
1,365
2
Provisions
–2,622
7
Total
–7,901
The previous year included the recognition of a provision for strategic projects in connection with the implementation of the pharmaceutical strategy.
16 Income taxes Income taxes occurred mainly in Germany, France, Austria and Brazil.
Consolidated annual financial report of the Weleda Group
Other information pursuant to article 663b ff. Swiss Code of Obligations Contingent liabilities and other financial obligations
Guarantees Contingent liabilities for benefit provision Fair value of derivative financial instruments 1
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
156
2,957
0
1,551
–1,238
–1
Data was collected for the first time in 2014, following the introduction of the Weleda Accounting Manual.
Pension liabilities in the amount of EUR 1,676,000 were created in France following the introduction of the Accounting Manual. In previous years, these were included in the Notes to the financial statements as contingent liabilities. The derivative financial instruments relate to interest hedges (variable to fixed rate) in France for existing financial liabilities.
Long-term rental and leasing obligations
Residual maturity up to 5 years
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
14,543
14,632
Residual maturity over 5 years
11,867
13,995
Total
26,410
28,627
There are rental and leasing obligations for computer hardware, vehicles and production machinery as well as buildings.
Liabilities for benefit provisions
Pension fund, Weleda AG, Arlesheim
Fire insurance values for property, plant and equipment
Weleda Group
Total amount of assets pledged or assigned to secure own liabilities and assets under reservation of ownership Weleda Group
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
1,830
1,816
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
303,456
288,747
31.12.2014 in 1,000 EUR
31.12.2013 in 1,000 EUR
30,526
32,802
69
70
Consolidated annual financial report of the Weleda Group
Overview of Group and holding companies Consolidated companies
Registered office
Function
Currency
Company capital in 1,000
Capital share 2014
Capital share 2013
Weleda AG
CH-Arlesheim/ D-Schwäbisch Gmünd
Headquarters: incl. production, trade and services
CHF
4,750
100.0%
100.0%
Weleda Benelux SE
NL-Zoetermeer
Production and trade
EUR
2,269
100.0%
100.0%
Weleda Ges.m.b.H.
A-Vienna
No operative function
EUR
36
100.0%
100.0%
Weleda Ges.m.b.H. & Co. KG
A-Vienna
Trade
EUR
1,100
100.0%
100.0%
Weleda Trademark AG
CH-Arlesheim
Services
CHF
1,000
100.0%
100.0%
Weleda Inc.
USA-Irvington, NY
Trade
USD
8,525
100.0%
100.0%
Weleda Italia S.r.l.
I-Milan
Trade
EUR
500
100.0%
100.0%
Weleda Ltda.
BRA-São Paulo
Production and trade
BRL
27,140
100.0%
100.0%
Weleda Naturals GmbH
D-Schwäbisch Gmünd
Services
EUR
25
100.0%
100.0%
Weleda East GmbH
RUS-Moscow
Trade
RUB
10
100.0%
100.0%
Weleda S.A.U.
E-Madrid
Trade
EUR
685
100.0%
100.0%
Weleda (NZ) Ltd
NZL-Havelock North
Production and trade
NZD
169
100.0%
100.0%
Weleda Australia Pty Ltd
AUS-Warriewood
Trade
AUD
0
100.0%
100.0%
Weleda AB
S-Stockholm
Trade
SEK
2,000
100.0%
100.0%
Weleda Ltda.
CHL-Santiago de Chile
Production and trade
CLP
491,321
99.7%
99.7%
Weleda (Australasia) Ltd
NZL-Havelock North
Services
NZD
1,139
99.5%
99.5%
Weleda spol. s.r.o.
CZ-Prague
Trade
CZK
19,684
99.3%
99.3% 95.0%
Weleda S.A.
ARG-Buenos Aires
Production and trade
ARS
7,622
95.0%
Weleda UK Ltd
GB-Ilkeston
Production and trade
GBP
1,495
95.0%
94.5%
Weleda S.A.
F-Huningue
Production and trade
EUR
3,400
89.7%
83.3%
Weleda Japan Co., Ltd
JP-Nagoya
Production and trade
JPY
10,000
35.0%
35.0%
Consolidated annual financial report of the Weleda Group
Information regarding the carrying out of a risk assessment In the course of the 2014 financial year, the management of the Weleda Group carried out the process of identifying and assessing material corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding measures.
Events after the balance sheet date The Swiss National Bank (SNB) discontinued its minimum exchange rate of CHF 1.20 per EUR on January 15th 2015. The carrying values of various items contained in the balance sheet are dependent on future developments in exchange rates that cannot be assessed at the present time. These developments could have a major impact on the income statement for 2015. Any value adjustments that become necessary will be recognised in the financial statements for 2015.
71
72
Consolidated annual financial report of the Weleda Group
Report of the statutory auditor to the General Meeting on the consolidated financial statements 2014
Report of the statutory auditor on the consolidated financial statements
the auditor considers the internal control system relevant to the entity’s preparation of the consolidated financial statements in order to design audit procedures that are appropriate in the cirAs statutory auditor, we have audited the accompanying cumstances, but not for the purpose of expressing an opinion on consolidated financial statements of Weleda AG, which comprise the effectiveness of the entity’s internal control system. An audit the balance sheet, income statement, cash flow statement and also includes evaluating the appropriateness of the accounting notes, pages 54 to 71, for the year ended 31st December 2014. policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the conBoard of Directors’ responsibility solidated financial statements. We believe that the audit eviThe Board of Directors is responsible for the preparation of the dence we have obtained is sufficient and appropriate to provide consolidated financial statements in accordance with the require- a basis for our audit opinion. ments of Swiss law and the consolidation and valuation principles described in the notes. This responsibility includes designing, im- Opinion plementing and maintaining an internal control system relevant to In our opinion, the consolidated financial statements for the the preparation of consolidated financial statements that are free year ended 31st December 2014 comply with Swiss law as well from material misstatement, whether due to fraud or error. The as with the consolidation and valuation principles described in Board of Directors is further responsible for selecting and applying the notes. appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.
Report on other legal requirements Auditor’s responsibility Our responsibility is to express an opinion on these consolidated We confirm that we meet the legal requirements on licensing accor financial statements based on our audit. We conducted our audit ding to the Auditor Oversight Act (AOA) and independence (article in accordance with Swiss law and Swiss Auditing Standards. 728 CO) and that there are no circumstances incompatible with our Those standards require that we plan and perform the audit to independence. In accordance with article 728a paragraph 1 item 3 CO and obtain reasonable assurance whether the consolidated financial Swiss Auditing Standard 890, we confirm that an internal control statements are free from material misstatement. An audit involves performing procedures to obtain audit system exists which has been designed for the preparation of evidence about the amounts and disclosures in the consolidated consolidated financial statements according to the instructions financial statements. The procedures selected depend on the of the Board of Directors. We recommend that the consolidated financial statements auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, submitted to you be approved. whether due to fraud or error. In making those risk assessments,
PricewaterhouseCoopers Ltd, Münchenstein, 15th April 2015
Dr. Rodolfo Gerber, Audit expert/Auditor in Charge
Marco Köstinger, Audit expert
73
Annual Financial Report 2014 Weleda AG Consisting of Arlesheim headquarters and branch office Schwäbisch Gmünd
Table of contents Balance sheet of Weleda AG
Page 74
Income statement of Weleda AG
Page 75
Statement of shareholders’ equity of Weleda AG
Page 76
Notes to the financial statements of Weleda AG
Page 77
Proposed appropriation of the result for the year
Page 82
Report of the statutory auditor
Page 83
74
Annual financial report of Weleda AG
Balance sheet of Weleda AG Assets
Notes
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
Non-current assets Intangible assets Property, plant and equipment Financial assets
1
Total non-current assets
9,379
11,346
49,072
58,981
49,086
53,564
107,537
123,891
Current assets Inventories
62,389
53,567
Trade receivables
2
56,317
47,620
Other current receivables
3
5,762
10,068
Deferred charges and prepaid expenses
948
1,554
Marketable securities
187
153
24,737
15,500
Total current assets
150,340
128,462
Total assets
257,877
252,353
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
4,750
4,750
Cash and cash equivalents
Shareholders’ equity and liabilities
Notes
Shareholders’ equity Share capital
9,500
9,500
Premium from capital contribution
Non-voting share capital
12,000
12,000
Reserves
73,682
82,428
0
–17,105
99,932
91,573
18,552
20,839
14,118
6,011
Accumulated profit/loss Total shareholders’ equity Current liabilities Trade payables
4
Current financial liabilities Other current liabilities
5
Current provisions Accrued charges and deferred income Total current liabilities
3,096
6,644
9,347
19,675
15,111
857
60,224
54,026
62,311
Non-current liabilities Non-current financial liabilities
6
39,877
Other non-current liabilities
7
19,515
7,636
38,329
36,807
Non-current provisions Total non-current liabilities
97,721
106,754
Total liabilities
157,945
160,780
Total shareholders’ equity and liabilities
257,877
252,353
Annual financial report of Weleda AG
Income statement of Weleda AG Notes
Net sales Changes in inventories of finished goods and work in progress
2014 in 1,000 CHF
2013 in 1,000 CHF
303,814
280,752
7,846
280
Total sales
311,660
281,032
Cost of goods sold
–106,808
–97,584
Gross profit
204,852
183,448
11,878
11,446
–96,572
–86,228
Other income
Employee income and social expenditure Depreciation and amortisation on non-current assets Other operating expenses Total operating expenditure
Operating result (EBIT)
Financial result
8
Ordinary result before tax
Extraordinary result Result before tax (EBT)
Income taxes Profit for the year
9
–8,202
–9,963
–84,191
–66,230
–188,965
–162,421
27,765
32,473
–3,987
–4,435
23,778
28,038
–6,838
–18,462
16,940
9,576
–8,122
–8,173
8,818
1,403
75
76
Annual financial report of Weleda AG
Statement of shareholders’ equity of Weleda AG as at December 31st
Statement of shareholders’ equity in 1,000 CHF
Company capital1
Premium from capital contribution
Reserve for own shares
Other legal reserves
Other reserves
Accumulated profit/loss
Total shareholders’ equity
14,250
12,000
673
3,400
78,442
–18,508
90,257
1,403
1,403
Shareholders’ equity as at January 1st 2013 Loss/profit for the year Currency translation effect Change in own shares/non-voting shares Shareholders’ equity as at December 31st 2013
68 14,250
12,000
741
3,400
Carried forward to Other reserves2
0
78,287
–17,105
91,573
–17,105
17,105
0
–698
–698
Loss/profit for the year
8,818
8,818
243
243
–4
–4
–286
0
Currency translation effect Change in own shares/non-voting shares Shareholders’ equity as at December 31st 2014
286 14,250
ompany capital is broken down as follows: C 6,880 registered shares at CHF 112.50 3,984 registered shares at CHF 125.00 3,478 registered shares at CHF 1,000.00 19,000 registered non-voting shares at CHF 500.00 There was no change in the company capital versus the prior year.
2
–87
–68
Dividends to shareholders/holders of non-voting shares2
Elimination of dividends on own shares until 2009
1
–87
As per GM resolution of June 6th 2014
12,000
1,027
3,400
69,255
0
99,932
Annual financial report of Weleda AG
Notes to the financial statements of Weleda AG 1 Financial assets
Shares in associated companies Shares in non-controlling interests Loans to associated companies Loans to companies in which a non-controlling interest is held
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
46,876
45,875
130
130
1,345
6,558
696
948
Other financial assets
39
53
Total financial assets
49,086
53,564
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
From third parties
37,221
33,800
From associated companies
18,512
13,425
From companies in which a non-controlling interest is held
425
395
From shareholders
159
0
56,317
47,620
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
2 Trade receivables
Total trade receivables
3 Other current receivables
From third parties
2,045
643
From associated companies
2,680
8,674
From companies in which a non-controlling interest is held and from shareholders
10
10
Own shares and non-voting shares
1,027
741
Total other current receivables
5,762
10,068
77
78
Annual financial report of Weleda AG
4 Trade payables
To third parties To associated companies Total trade payables
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
18,534
16,521
18
4,318
18,552
20,839
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
3,086
1,280
0
5,115
10
249
3,096
6,644
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
5 Other current liabilities
To third parties To associated companies To shareholders Total other current liabilities
6 Non-current financial liabilities
Bank loans
14,269
21,859
Funds and trustee loans
23,408
38,252
Other non-current financial liabilities Total
Maturity
2,200
2,200
39,877
62,311
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
Residual maturity 1 to 5 years
37,677
51,287
Residual maturity over 5 years
2,200
11,024
39,877
62,311
Total
Scheduled repayments due within the following 12 months have been disclosed in current financial liabilities.
Annual financial report of Weleda AG
7 Other non-current liabilities 31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
To associated companies
19,515
7,636
Total other non-current liabilities
19,515
7,636
2014 in 1,000 CHF
2013 in 1,000 CHF
8 Financial result
Dividends and licence income from associated companies
174
2
Interest from associated company loans
139
756
Interest and similar income from third parties Interest and similar expenses relating to associated companies Interest and similar expenses relating to third parties Exchange rate differences, net Value adjustments/provisions financial assets Total financial result
80
80
–443
–474
–3,226
–3,991
–711
–575
0
–233
–3,987
–4,435
9 Extraordinary result The extraordinary result contains adjustments in the year under review, made necessary by the new Weleda Accounting Manual: the previous year included the recognition of a provision for strategic projects in connection with the implementation of the pharmaceutical strategy.
79
80
Annual financial report of Weleda AG
Information pursuant to article 663b ff. Swiss Code of Obligations Total amount of assets pledged or assigned to secure own liabilities and assets under reservation of ownership
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
26,641
25,882
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
120
10,915
4,232
4,684
Weleda AG, Arlesheim
Contingent liabilities and other financial obligations Guarantees Long-term rental and leasing obligations
Weleda AG has rental and leasing obligations for computer hardware, vehicles and production machinery as well as for buildings.
Fire insurance values for property, plant and equipment
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
134,359
128,514
81,429
77,493
31.12.2014 in 1,000 CHF
31.12.2013 in 1,000 CHF
2,200
2,225
2014 in 1,000 CHF
2013 in 1,000 CHF
519
459
31
80
Weleda AG, Schwäbisch Gmünd Weleda AG, Arlesheim
Liabilities for benefit provisions
Pension fund, Weleda AG, Arlesheim
Own shares and non-voting shares
Stock of own shares (in number: 218, previous year: 194) as at Jan. 1st Purchase of own shares (in number: 17, previous year: 32) Sale of own shares (in number: 214, previous year: 8) Stock of own shares (in number: 21, previous year: 218) as at Dec. 31st Stock of own non-voting shares (in number: 186, previous year: 179) as at Jan. 1st
–535
–20
15
519
222
214
Purchase of own non-voting shares (in number: 974, previous year: 12)
1,218
14
Sale of own non-voting shares (in number: 342, previous year: 5)
–428
–6
Stock of own non-voting shares (in number: 818, previous year: 186) as at Dec. 31st
1,012
222
Total own shares and non-voting shares
1,027
741
Shares and non-voting shares were bought respectively sold at 250 per cent of the nominal value.
Annual financial report of Weleda AG
Equity interests
Registered office
Function
Weleda Benelux SE
NL-Zoetermeer
Production and trade
Currency
Company capital in 1,000
Capital share 2014
Capital share 2013
EUR
2,269
100.0%
100.0%
Weleda Ges.m.b.H.
A-Vienna
No operative function
EUR
36
100.0%
100.0%
Weleda Ges.m.b.H. & Co. KG
A-Vienna
Trade
EUR
1,100
100.0%
100.0%
Weleda Trademark AG
CH-Arlesheim
Services
CHF
1,000
100.0%
100.0%
Weleda Inc.
USA-Irvington, NY
Trade
USD
8,525
100.0%
100.0%
Weleda Italia S.r.l.
I-Milan
Trade
EUR
500
100.0%
100.0%
Weleda Ltda.
BRA-São Paulo
Production and trade
BRL
27,140
100.0%
100.0%
Weleda Naturals GmbH
D-Schwäbisch Gmünd
Services
EUR
25
100.0%
100.0%
Weleda East GmbH
RUS-Moscow
Trade
RUB
10
100.0%
100.0%
Weleda S.A.U.
E-Madrid
Trade
EUR
685
100.0%
100.0%
Weleda (NZ) Ltd
NZL-Havelock North
Production and trade
NZD
169
100.0%
100.0%
Weleda Australia Pty Ltd
AUS-Warriewood
Trade
AUD
0
100.0%
100.0%
Weleda AB
S-Stockholm
Trade
SEK
2,000
100.0%
100.0%
Weleda Ltda.
CHL-Santiago de Chile
Production and trade
CLP
491,321
99.7%
99.7%
Weleda (Australasia) Ltd
NZL-Havelock North
Services
NZD
1,139
99.5%
99.5%
Weleda spol. s.r.o.
CZ-Prague
Trade
CZK
19,684
99.3%
99.3%
Weleda S.A.
ARG-Buenos Aires
Production and trade
ARS
7,622
95.0%
95.0%
Weleda UK Ltd
GB-Ilkeston
Production and trade
GBP
1,495
95.0%
94.5%
Weleda S.A.
F-Huningue
Production and trade
EUR
3,400
89.7%
83.3%
Weleda Japan Co., Ltd
JP-Nagoya
Production and trade
JPY
10,000
35.0%
35.0%
Information regarding the carrying out of a risk assessment In the course of the 2014 financial year, the management of Weleda AG carried out the process of identifying and assessing material corporate risks. The Board of Directors has discussed and approved the results of the risk assessment and the corresponding measures.
Consistency The introduction of the Weleda Accounting Manual means that accounting consistency is no longer ensured. The impact on the income statement as at January 1st 2014 was included in the extraordinary result. The introduction of the Weleda Accounting Manual has also led to the reclassification of individual positions in the balance sheet.
Events after the balance sheet date The Swiss National Bank (SNB) discontinued its minimum exchange rate of CHF 1.20 per EUR on January 15th 2015. The carrying values of various items contained in the balance sheet are dependent on future developments in exchange rates that cannot be assessed at the present time. These developments could have a major impact on the income statement for 2015. Any value adjustments that become necessary will be recognised in the financial statements for 2015.
81
82
Annual financial report of Weleda AG
Proposed appropriation of the result for the year
Board of Directors’ proposed appropriation of the result for the year
in CHF
Profit for 2014
8,817,781.36
To be used as follows: Allocation to Other reserves
8,105,281.36
Distribution of 5 % dividend on share capital of CHF 4,750,000.00
237,500.00
Distribution of 5 % dividend on non-voting share capital of CHF 9,500,000.00
475,000.00
Total
8,817,781.36
Other reserves December 31st 2014
69,254,304.93
Other reserves after appropriation of profit
68,541,804.93
CHF per share
CHF per share
CHF per share
CHF per non-voting share
112.50
125.00
1,000.00
500.00
5.65
6.25
50.00
25.00
minus 35% Swiss withholding tax
–2.00
–2.20
–17.50
–8.75
Net dividend per share/non-voting share
3.65
4.05
32.50
16.25
Dividend
Share/non-voting share (nominal) Annual dividend 5%
Dividend payment Provided the General Shareholders’ Meeting approves the proposed appropriation of profit, we will transfer payment of the dividend in calendar week 24. No dividend will be paid for shares and non-voting shares held directly by the company at the time of dividend payment. Swiss federal withholding tax of 35 per cent will be deducted from the gross dividend amount. This can usually be reclaimed via tax returns. This applies to shareholders and holders of non-voting shares resident in Switzerland or a country with which Switzer land has concluded a double tax agreement. For this reason, the relevant banking receipt should be safely stored and enclosed with the final tax return. Weleda AG, Arlesheim, April 15th 2015 On behalf of the Board of Directors
Paul Mackay, Chairman
Dr Jürg Galliker, Deputy Chairman
Annual financial report of Weleda AG
Report of the statutory auditor to the General Shareholders’ Meeting of Weleda AG
Report of the statutory auditor on the financial statements
internal control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of exAs statutory auditor, we have audited the accompanying financial pressing an opinion on the effectiveness of the entity’s internal statements of Weleda AG, which comprise the balance sheet, in- control system. An audit also includes evaluating the appropriatecome statement and notes, pages 74 to 81, for the year ended ness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall 31st December 2014. presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to Board of Directors’ responsibility The Board of Directors is responsible for the preparation of the fi- provide a basis for our audit opinion. nancial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility Opinion includes designing, implementing and maintaining an internal con- In our opinion, the financial statements for the year ended 31st Detrol system relevant to the preparation of financial statements cember 2014 comply with Swiss law and the company’s articles that are free from material misstatement, whether due to fraud or of incorporation. error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Report on other legal requirements We confirm that we meet the legal requirements on licensing Auditor’s responsibility Our responsibility is to express an opinion on these financial according to the Auditor Oversight Act (AOA) and independence statements based on our audit. We conducted our audit in ac- (article 728 CO) and that there are no circumstances incompatible cordance with Swiss law and Swiss Auditing Standards. Those with our independence. In accordance with article 728a paragraph 1 item 3 CO and standards require that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free Swiss Auditing Standard 890, we confirm that an internal control system exists which has been designed for the preparation of from material misstatement. An audit involves performing procedures to obtain audit financial statements according to the instructions of the Board of evidence about the amounts and disclosures in the financial Directors. We further confirm that the proposed appropriation of statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material mis- the result for the year complies with Swiss law and the company’s statement of the financial statements, whether due to fraud or articles of incorporation. We recommend that the financial stateerror. In making those risk assessments, the auditor considers the ments submitted to you be approved.
PricewaterhouseCoopers Ltd, Münchenstein, 15th April 2015
Dr. Rodolfo Gerber, Audit expert/Auditor in Charge
Marco Köstinger, Audit expert
83
84
Certifications
Certifications of Weleda countries
Switzerland Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland, Tel. +41 61 705 21 21, www.weleda.ch
Certified in accordance with ISO 14001 and EMAS/ Verified Environmental Management
Germany Weleda AG, Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany, Tel. +49 7171 91 90, www.weleda.de
Certified in accordance with ISO 14001 and EMAS/ Verified Environmental Management, D-135-00032
France Weleda S.A., 9, rue Eugène Jung, 68331 Huningue Cedex, France, Tel. +33 38 969 68 00, www.weleda.fr
Certified in accordance with ISO 14001 Sweden Weleda AB, Ludvigsbergsgatan 20, 11823 Stockholm, Sweden, Tel. +46 85 515 18 00, www.weleda.se
Certified in accordance with ISO 14001 Italy Weleda Italia S.r.l., Via del Ticino 6, 20153 Milano, Italy, Tel. +39 02 487 70 51, www.weleda.it
Certified in accordance with SA8000 (Social Accountability Standard)
Global Reporting Initiative
GRI indicators index Weleda’s corporate responsibility reporting is geared to internationally recognised standards and guidelines (current G3 version of the Global Reporting Initiative, or GRI). The GRI was started in 1997 by the Coalition of Environmentally Responsible Economies (Ceres) and the United Nations Environment Programme (UNEP); more detailed information can be found on the Internet at www.globalreporting.org.
Index
Standard disclosures
2.1
Name of the organisation
Page Cover
2.2
Primary products and services
35–41
2.3
Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures
8–10, 86
2.4
Location of the organisation’s headquarters
86, 87
2.5
Countries where the organisation operates
42– 47, 86 2
2.6
Nature of ownership and legal form
2.8
Scale of the organisation (number of employees, net sales, total capitalisation)
2, 4–5, 47
2.9
Significant changes in structure
8–10
2.10
Awards received in the reporting period
31, 40, 46
3.1–3.4
Reporting profile: reporting period, date of most recent report, reporting cycle, contact point for questions regarding the report
Cover, 87
3.12
GRI indicators index
85
4.1
Corporate governance
33
4.8
Mission statements, code of conduct and relevant principles (internal)
11–13, 25, 31, 33
4.12
Charters, principles or initiatives (external)
15–17, 26–28
Economic EC1
Direct economic value generated and distributed
4, 32
EC8
Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagements
26–28
Environmental EN1–EN2
Materials used and recycling
23
EN3
Direct energy consumption
19, 22
EN4
Indirect energy consumption
19, 22
EN8
Total water withdrawal
18, 22
EN10
Volume of water recycled and reused
18
EN11–EN12
Location and site of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value and impact on biodiversity
16–17
EN14
Strategies, current actions and future plans for managing impacts on biodiversity
15–17
EN16
Greenhouse gas emissions
19, 23
EN22
Total weight of waste by type and disposal method
21, 23
EN26
Initiatives to mitigate environmental impacts of products and services
15–21
Labour practices and decent work LA1
Total workforce by employment type, contract and region
29
LA13
Employees per category according to gender, age group and other indicators of diversity
29
HR2
Screening on human rights among suppliers and contractors
27
HR6–7
Measures to contribute to the elimination of child and forced labour
27
PR1
Health and safety in respect of products and services
35–41
85
86
Addresses
Weleda throughout the world
Switzerland Weleda AG Dychweg 14, 4144 Arlesheim, Switzerland Tel. +41 61 705 21 21, www.weleda.ch and www.weleda.com Weleda Trademark Dychweg 14, 4144 Arlesheim, Switzerland Tel. +41 61 705 20 50 Germany Weleda AG Möhlerstrasse 3–5, 73525 Schwäbisch Gmünd, Germany Tel. +49 7171 91 90, www.weleda.de Argentina Weleda S.A. Ramallo 2566, C1429DUR Buenos Aires, Argentina Tel. +54 11 4704 4700, www.weleda.com.ar Australia Weleda Australia Pty Ltd Unit 2/92A Mona Vale Road, Warriewood NSW 2102, Australia Tel. +61 29 997 5171, www.weleda.com.au Benelux Weleda Benelux SE Platinastraat 161, Postbus 733, 2718 SR Zoetermeer, Netherlands Tel. +31 79 363 13 13, www.weleda.nl and www.weleda.be Brazil Weleda do Brasil Laboratório e Farmácia Ltda. Rua Brigadeiro Henrique Fontenelle 33, CEP 0512500 Parque São Domingos, São Paulo, Brazil Tel. +55 11 3641 4122, www.weleda.com.br Chile Weleda Chile Ltda. Evaristo Lillo 78, Of. 401 Las Condes, Santiago de Chile, Chile Tel. +56 02 240 2700, www.weleda.cl France Weleda S.A. 9, rue Eugène Jung, 68331 Huningue Cedex, France Tel. +33 38 969 68 00, www.weleda.fr United Kingdom Weleda UK Ltd Heanor Road, Ilkeston, Derbyshire, DE7 8DR, United Kingdom Tel. +44 11 5944 8222, www.weleda.co.uk Italy Weleda Italia S.r.l. Via del Ticino 6, 20153 Milan, Italy Tel. +39 02 487 70 51, www.weleda.it
Japan Weleda Japan Co., Ltd Ebisu IS building 4F, 13-6, Ebisu 1, Shibuya-ku, Tokyo 150-0013, Japan Tel. +81 52232 1165, www.weleda.jp New Zealand Weleda (NZ) Ltd 302 Te Mata Road, P.O. Box 8132, Havelock North 4157, New Zealand Tel. +64 6 872 87 00, www.weleda.co.nz Austria Weleda Ges.m.b.H & Co. KG Hosnedlgasse 27 A, 1220 Vienna, Austria Tel. +43 1256 60 60, www.weleda.at Peru Weleda del Perú S.A. Francisco de Zela 2672, Lima 14, Peru Tel. +51 1 222 27 61, www.weleda.com.pe Russia Weleda East LLC Rusakovskay 13, BC “Borodino Plaza” 107140 Moscow, Russia Tel. +7 495 604 15 06, www.weleda-ru.ru Sweden Weleda AB Ludvigsbergsgatan 20, 11823 Stockholm, Sweden Tel. +46 85 515 18 00, www.weleda.se Slovakia Weleda spol. s.r.o. (branch of Weleda Czech Republic) Dúbravská cesta č 9, 84104 Bratislava, Slovak Republic Tel. +421 25 443 39 07, www.weleda.sk Spain Weleda S.A.U. Calle Manuel Tovar 3, 28034 Madrid, Spain Tel. +34 91 358 03 58, www.weleda.es Czech Republic Weleda spol. s.r.o. Lidickà 336/28, 150 00 Prague 5, Czech Republic Tel. +420 25 731 58 88, www.weleda.cz USA Weleda North America (Weleda Inc.) 1 Bridge Street, Suite 42, Irvington, NY 10533, USA Tel. +1 800 241 1030, www.usa.weleda.com
Publication details
Publication details The Annual and Sustainability Report 2014 of the Weleda Group and Weleda AG is available in English and German. The German version is binding.
Date of publication
Issued by
Editors
May 11th 2015 Weleda AG, Dychweg 14, 4144 Arlesheim, Switzerland, www.weleda.com Frédéric Anklin, Holger Biller, Natascha Blank, Michael Brenner, Martin Cadosch, Rebekka Dubach,
Birgit Frank, Andrea Freund, Tobias Jakob, Marcel Locher, Susi Lotz (project coordination), Ulla Röber,
Bas Schneiders, Theo Stepp (editorial responsibility), Sonja Thiele (picture editor), Günseli Ünlü
Photos
Torsten Arncken, Basellandschaftliche Kantonalbank, Geneviève Barraqué, Irmin Eitel, Louisa Feiter,
Flugschnaisa, Bernd Jonkmanns, Asaf Matarasso, Buero Berlin Sabina Paries,
Thomas v. Künsberg Sarre, Karen Staudt, Sonja Thiele, Pedro Toledo, David Voelkel, Marek Vogel,
Barbara v. Woellwarth, Zoodesign M. Pfefferle
Design Furore GmbH, Basel, Switzerland
Printed by
Paper
Contact for questions
Druckerei Lokay e.K., Königsberger Str. 3, 64354 Reinheim, Germany Circle matt white, FSC-certified, Der Blaue Engel RAL-ZU 14, EU Ecolabel
regarding the report Theo Stepp, Corporate Communications, Tel. +497171/919-178;
[email protected]
Art. no. 00085509 (CH), art. no. 50050700 (D)
Weleda AG produces its Annual and Sustainability Report on a yearly basis. The last report produced was the Annual and Sustainability Report 2013 of the Weleda Group and Weleda AG.
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