WÜRTH FINANCE GROUP UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2015

Transkript

1 WÜRTH FINANCE GROUP UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2015

2 CONTENTS INTERIM MANAGEMENT REPORT AS AT 30 JUNE 2015 ZWISCHENLAGEBERICHT PER 30. JUNI 2015 UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE Balance sheet 11 Income statement / Comprehensive income statement 12 Cash flow statement 13 Statement of changes in equity 14 Notes to the interim condensed consolidated financial statements STATEMENT BY THE MANAGEMENT 02

3 INTERIM MANAGEMENT REPORT AS AT 30 JUNE 2015 The core activities of the Würth Finance Group (Würth Finance International B. V., Würth Invest AG and Würth Financial Services AG) comprise financing and executing all kinds of financial transactions with domestic and foreign companies throughout the Würth Group as well as providing advisory and other services to private clients and SMEs in relation to pension funds and insurance. 1. Business activity Supported by the slightly positive developments in the European economy in the first half of 2015, the Würth Group s core business experienced growth. This had a positive impact on the business of the Würth Finance Group, which depends on the Würth Group s performance. In the central settlement area, in particular, this is reflected in higher supplier payment volumes. In the external insurance business, the growth of in-force and new business is reflected in the ongoing increase in premium income. In the period under review, the Würth Finance Group reported total revenue of EUR 35.6 million 1, up by 19.5 % year-on-year. Operating expenses increased by 9.2 % to EUR 14.2 million (1H14: EUR 13.0 million), exceeding the plan. The Swiss central bank (Schweizerische Nationalbank) abandoned the cap on the CHF against the EUR which put pressure on the cost side, since 80 % of the HR, IT and administrative costs, but only 20 % of the company s revenue, are denominated in CHF. At the end of June 2015, the company employed 102 full-time equivalents (1H14: 101). The result before tax rose by 27.4 % to EUR 21.4 million 1 (1H14: EUR 16.8 million). The management is satisfied with this development. 1.1 Inhouse banking (Würth Finance International B. V. / Würth Invest AG) During the period under review, the company generated revenue totalling EUR 27.8 million 1, up on the prior-year period by 16.8 %. In EUR million Revenue YTD 2015 Change against 1H14 Group financing Income from IBB Central settlement Trading Securities investments Group financing As at 30 June 2015, the total assets of the Würth Finance Group amounted to EUR 2,665 million (EUR 2,185 million as at 31 December 2014). This increase in assets is due to the issuance of a EUR 500 million bond. This also meant that liquidity increased from EUR 424 million to EUR 769 million in the first six months of In connection with the Group s organic growth and acquisitions, the financing requirements of the associated companies increased. The net lendings of Würth Finance International B. V. to associated companies rose by EUR 175 million to EUR 1,049 million as against 31 December Income from factoring activities increased in line with the growing business volume of the Würth Group. All in all, the income from Group financing stagnated in a year-on-year comparison at EUR 10.9 million 1. As can be recognized in the IFRS income statement, the rising interest rates in the first half of 2015 resulted in valuation losses of approx. EUR 3.8 million on interest derivatives (1H14: EUR 11.2 million valuation gains) Central settlement of supplier payments The income from the central settlement and the delcredere business amounted to EUR 8.5 million in the first half of 2015, an increase of around 6% as against the same period in This positive development is attributable to the rise in purchasing volume of the Würth Group Income from IBB participation Due to contractual amendments to the silent partic ipation in Internationales Bankhaus Bodensee AG (IBB), the revenue that is attributable to this participation, totalling EUR million, was no longer recognised on an accrual basis for the first time in the 2014 financial year, but was only recognised at the time the resolution on the distribution of profit was passed at the annual shareholders meeting in spring Further revenue amounting to EUR 0.6 million results from the capital provision agreement with IBB. 1 This figure does not include the EUR 3.8 million effect for the mark-to-market measurement of interest rate derivatives used to hedge interest rate risk as recognised in the IFRS accounts (1H14: valuation gains totalling EUR 11.2 million). 03

4 1.1.4 Trading with financial instruments The risks associated with trading financial instruments were kept at a minimum in the first half of the business year. Nevertheless a trading revenue of EUR 3.0 million (1H14: EUR 3.1 million) was generated Securities investments Würth Invest AG maintained its conservative investment strategy on its security investments, with an emphasis on fixed income instruments. The considerable rise in interest rates from mid-april and increased volatility on the stock markets led to a difficult market environment. The performance of the securities investments up to the end of June amounted to EUR 0.9 million, or 1.0 %. 1.2 External financial services (Würth Financial Services AG) Würth Financial Services AG achieved a revenue of TCHF 8,147 in the first half of 2015, 9 % over the level of the previous year (TCHF 7,466). The constant focus on acquiring new customers contributed to this good result. In doing so, the turnover from new customers increased by 20 % in comparison with the previous year. The operating result at the end of June 2015 amounted to TCHF 2,948, nearly half a million Swiss francs higher than in the year before. Thanks to the merger of Würth Financial Services AG Liechtenstein into Würth Financial Services AG Schweiz with retroactive effects from 1 January 2015, processes were streamlined and designed more efficiently, which also reduced costs in comparison to the year before. In order to generate further potential growth, Würth Financial Services AG is organising more events in the Würth Haus Rorschach in 2015, whereby on the one hand, existing customer relationships can be consolidated and on the other hand these events provide a good opportunity to draw the attention of potential new customers to Würth Financial Services AG. Together with the increased use of the Würth network, excellent acquisition opportunities exist for the second half-year, with which Würth Financial Services AG can confidently look forward to a successful outcome in Key risks and opportunities for the Würth Finance Group 2.1 Strategic risks and opportunities In terms of revenue, Würth Finance International B. V. is the heavyweight within the Würth Finance Group. As an inhouse service provider, Würth Finance International B. V. generates most of its revenue with counterparties from within the Würth Group. Consequently, there is a direct correlation between the performance of Würth Finance International B. V. and the Würth Group as a whole. Thanks to its membership of the Würth Group, the Würth Finance Group has a significant information advantage which it has utilised using for many years to gain market share. 2.2 Technological risks and opportunities The Group s success depends on reliable information and communication technology (ICT) and a secure IT environment. All Würth Finance Group companies strive to develop state-of-the-art solutions for their processes and continuously optimise their ICT environment. The high scalability of the ICT infrastructure allows additional business volume to be processed in a costefficient manner and ensure a high level of process quality. 2.3 Operational risks and opportunities The Würth Finance Group defines operational risks as being the risks of loss due to inadequat or failed internal processes, systems, persons or external events. The internal control system (ICS) of the Würth Finance Group estimates possible events based on the probability, their frequency and impact, documents these events and optimises them on an ongoing basis. The desire to continuously improve the quality, efficiency and security of core processes strengthens the competitiveness of the Würth Finance Group on a sustained basis. 2.4 Financial risks and opportunities The business activities of the Würth Finance Group expose it to developments on the financial markets. Changes resulting from exchange rates and interest rates, as well as share price fluctuations, affect its revenue, as do commodity prices, although to a lesser extent. The company is also exposed to credit risks on its financial assets and contingent liabilities. The Würth Finance Group uses a systematic risk man- 04

5 agement process to measure, manage and monitor financial risks. Audit compliance and transparent information are ensured by the strict segregation of duties between the risk-taking and risk-monitoring bodies. The Würth Finance Group has the critical size and financial strength to meet the increasing regulatory requirements in the financial and insurance brokerage business. This enables it to better position itself visà-vis to clients and gain market share. The financial strength of the Würth Finance Group is founded on shareholder s equity totalling EUR million, a net pre-tax result of EUR 14.4 million and assets totalling EUR 2,665 million (as at 30 June 2015). 3. Outlook The Management of the Würth Finance Group expects to see continued revenue growth in the central settlement area in the second half of the year. Trading results are expected to be on par with 2014 whereas the income from securities investments will be lower than Due to the successful issue of a EUR 500 million bond with a coupon of 1.0 % on 19 May 2015, net interest costs of the Würth Finance Group will rise significantly in the coming months. Costs will be around 20 % higher than the previous year as a result of the increase in strength of the Swiss franc, as well as higher one-time expenditure for the replacement of the system for settling international payments. This is expected to lead to a single-figure reduction in profit before taxes in comparison to the previous year. However, the results reported in accordance with IFRS will continue to be influenced to a considerable degree by long-term interest rate trends. If these remain stable until the end of the year, the IFRS result of the Würth Finance Group will be slightly lower due to the negative valuation effect on the derivative financial transactions. 05

6 ZWISCHENLAGEBERICHT PER 30. JUNI 2015 Zu den Kernaktivitäten der Würth Finance Group (Würth Finance International B. V., Würth Invest AG, Würth Financial Services AG) gehören einerseits die Finanzierung und die Durchführung von Finanzgeschäften aller Art mit in- und ausländischen Gesellschaften der gesamten Würth Group, sowie andererseits die Erbringung von Beratungs- und anderen Dienstleistungen in den Bereichen Vorsorge und Versicherung sowohl gegenüber Privatpersonen, als auch gegenüber kleinen und mittelständischen Unternehmen. 1. Geschäftsgang Unterstützt durch die leicht positive Entwicklung der Konjunktur in Europa im ersten Halbjahr 2015 ist das Kerngeschäft der Würth-Gruppe gewachsen. Dies beeinflusste das vom Konzern abhängige Geschäft der Würth Finance Group positiv, insbesondere im Bereich Zentralregulierung zeigt sich das durch höhere Volumen bei den Lieferantenzahlungen. Im Bereich des externen Versicherungsgeschäfts widerspiegelt sich das wachsende Bestands- und Neugeschäft in den weiterhin steigenden Prämienerträgen. Im Berichtszeitraum hat die Würth Finance Group insgesamt einen Ertrag in Höhe von EUR 35,6 Mio. 1 erwirtschaftet, was einer Steigerung gegenüber dem Vorjahreszeitraum von 19,5 % entspricht. Der Geschäftsaufwand ist um 9,2 % auf EUR 14,2 Mio. (Vorjahr: EUR 13,0 Mio.) gestiegen. Die Aufwände liegen damit über Plan. Die Aufgabe der EUR-Untergrenze durch die Schweizerische Nationalbank belastet die Kostenseite, da 80 % der Kostenblöcke Personal, IT und Verwaltung, aber nur 20 % der Erträge in Schweizer Franken anfallen. Per Ende Juni 2015 waren 102 Vollzeitstellen (101 im Vorjahreszeitraum) besetzt. Das Ergebnis vor Steuern hat sich um 27,4 % auf EUR 21,4 Mio. 1 verbessert (Vorjahr: EUR 16,8 Mio.). Das Management ist mit der Entwicklung zufrieden. 1.1 Inhouse Banking (Würth Finance International B. V. / Würth Invest AG) Im Berichtszeitraum wurde insgesamt ein Ertrag in Höhe von EUR 27,8 Mio. 1 erwirtschaftet, was einer Erhöhung gegenüber dem Vorjahreszeitraum von 16,8 % entspricht. In EUR Mio. Ertrag YTD 2015 Veränderung zu Vorjahresperiode Konzernfinanzierung 10,9 1 +0,3 Beteiligungserfolg IBB 4,2 +3,9 Zentralregulierung 8,6 +0,6 Trading-Erfolg 3,0 0,1 Wertschriftenanlagen 0,9 0, Konzernfinanzierung Zum beläuft sich die Bilanzsumme der Würth Finance Group auf EUR Mio (EUR Mio. per ). Die Bilanzverlängerung ist auf die Ausgabe einer Anleihe über EUR 500 Mio. zurückzuführen. In diesem Zusammenhang hat der Bestand an liquiden Mitteln im ersten Halbjahr 2015 von EUR 424 Mio. auf EUR 769 Mio. zugenommen. Verbunden mit dem organischen und akquisitorischen Konzernwachstum erhöhte sich der Finanzbedarf der Konzerngesellschaften. Die Netto-Ausleihungen der Würth Finance International B. V. an verbundene Unternehmen erhöhten sich im Vergleich zum um EUR 175 Mio. auf EUR Mio. Parallel zum steigenden Geschäftsvolumen der Würth Group stieg der Ertrag aus dem Factoringgeschäft. Insgesamt stagnierte das Ergebnis aus Konzernfinanzierung der Würth Finance Group im Vergleich zur Vorjahresperiode bei EUR 10,9 Mio. 1 Aufgrund steigender Zinssätze im ersten Halbjahr 2015 sind nach IFRS erfolgswirksame Bewertungsverluste auf deri vativen Zinsinstrumenten in Höhe von rund EUR 3,8 Mio. angefallen (Vorjahr: Bewertungsgewinn EUR 11,2 Mio.) Zentralregulierung Der Zentralregulierungs- und Delkredereertrag beläuft sich im ersten Halbjahr 2015 auf EUR 8,5 Mio., was einem Anstieg gegenüber dem Ergebnis im Vergleichszeitraum des Vorjahres um rund 6 % entspricht. Diese positive Entwicklung verläuft parallel zum steigenden Einkaufsvolumen der Würth-Gruppe Beteiligungserfolg IBB Aufgrund von vertraglichen Anpassungen auf der Stillen Beteiligung am Internationalen Bankhaus Bodensee AG (IBB) wurden die darauf anfallenden Erträge über EUR 3,575 Mio. für das Geschäftsjahr 2014 erstmalig nicht mehr unterjährig abgegrenzt, sondern erst zum Zeitpunkt des Gewinnausschüttungsbeschlusses 1 Nicht berücksichtigt sind die im IFRS-Abschluss ergebniswirksamen, ausserordentlichen Effekte aus der Marktbewertung von derivativen Zinsinstrumenten zur Absicherung von Zinsänderungsrisiken im Umfang von EUR 3,8 Mio. (Vorjahr: Bewertungsgewinn EUR 11,2 Mio.). 06

7 im Frühling 2015 im Rahmen der Jahresversammlung der Anteilseigner verbucht. Aus dem Kapitalüberlassungsvertrag mit der IBB fielen weitere Erträge in der Höhe von EUR 0,6 Mio. an Trading mit Finanzinstrumenten Die Risiken im Trading mit Finanzinstrumenten wurden weiterhin tief gehalten, wobei in der ersten Hälfte dieses Geschäftsjahres trotzdem ein Trading- Ertrag von EUR 3,0 Mio. (Vorjahr: EUR 3,1 Mio.) erreicht werden konnte Wertschriftenanlagen Bei den Wertschriftenanlagen verblieb die Würth Invest AG bei ihrer konservativen Anlagestrategie mit Schwerpunkt auf festverzinslichen Anlagen. Ein deutlicher Zinsanstieg ab Mitte April und zunehmende Volatilität an den Aktienmärkten bildeten ein schwieriges Marktumfeld. Die YTD-Performance per Ende Juni der Wertschriftenanlagen belief sich auf EUR 0,9 Mio. oder 1,0 %. 1.2 Externe Finanzdienstleistungen (Würth Financial Services AG) Im ersten Halbjahr 2015 hat die Würth Financial Services AG einen Umsatz von TCHF erzielt und liegt damit 9 % über Vorjahresniveau (TCHF 7 466). Zu diesem guten Ergebnis beigetragen hat die stetige Fokussierung auf die Akquise von Neukunden. Dabei konnte der Umsatz mit Neukunden um 20 % gegenüber dem Vorjahr gesteigert werden. Das Betriebsergebnis per Ende Juni 2015 beträgt TCHF und ist damit um knapp eine halbe Million Schweizer Franken höher als im Jahr zuvor. Dank der rückwirkenden Fusion per 1. Januar 2015 der Würth Financial Services AG Liechtenstein in die Würth Financial Services AG Schweiz konnten Prozesse verschlankt und effizienter gestaltet werden, wodurch sich auch die Kosten gegenüber dem Vorjahr reduzierten. Um weiteres Wachstumspotenzial zu generieren, organisiert die Würth Financial Services AG im Jahr 2015 vermehrt Fachveranstaltungen im Würth Haus Rorschach, wobei einerseits bereits bestehende Kundenbeziehungen gefestigt werden können und andererseits diese Veranstaltungen eine gute Gelegenheit bieten, um potenzielle Neukunden auf die Würth Financial Services AG aufmerksam zu machen. Zusammen mit der verstärkten Nutzung des Würth Netzwerkes bestehen auch für das zweite Semester hervorragende Akquisemöglichkeiten, womit die Würth Financial Services AG zuversichtlich auf einen erfolgreichen Geschäftsabschluss 2015 blickt. 2. Hauptrisiken und -chancen der Würth Finance Group 2.1 Strategische Risiken und Chancen Ertragsseitig bildet die Würth Finance International B. V. das Schwergewicht der Würth Finance Group. Als interner Dienstleister der Würth-Gruppe generiert die Würth Finance International B. V. den Grossteil ihrer Erträge mit gruppeninternen Gegenparteien. Somit ist der Geschäftsverlauf der Würth Finance International B. V. eng mit dem Geschäftsverlauf der ge samten Würth-Gruppe verbunden. Durch die Zugehörigkeit zur Würth-Gruppe verfügt die Würth Finance Group über einen deutlichen Informationsvorsprung, den sie seit vielen Jahren zum Gewinn von Marktanteilen nutzt. 2.2 Technologische Risiken und Chancen Der Erfolg ist abhängig von verlässlichen Informationen, der Kommunikationstechnologie und einer sicheren IT-Umgebung. Die gesamte Würth Finance Group ist bestrebt, «state of the art» Lösungen für ihre Prozesse aufrechtzuerhalten und die ICT-Umgebung weiter zu optimieren. Die hohe Skalierbarkeit der ICT-Infrastruktur ermöglicht es, zusätzliches Geschäftsvolumen kosteneffizient und mit hoher Prozessqualität abzuwickeln. 2.3 Operationelle Risiken und Chancen Unter operationellem Risiko versteht die Würth Finance Group ein Verlustrisiko, das infolge eines Mangels oder Versagens von internen Prozessen, Menschen oder Systemen oder aufgrund externer Ereignisse entsteht. Im Rahmen des internen Kontrollsystems (IKS) der Würth Finance Group werden mögliche Ereignisse nach der Wahrscheinlichkeit, ihrer Häufigkeit und ihren Auswirkungen eingeschätzt, dokumentiert und kontinuierlich optimiert. Das in der Unternehmenskultur verankerte Selbstverständnis, Qualität, Effizienz und Sicherheit in den Kernprozessen kontinuierlich zu verbessern, stärkt die Wettbewerbsstärke der Würth Finance Group nachhaltig. 2.4 Finanzielle Risiken und Chancen Mit ihren Geschäftsaktivitäten ist die Würth Finance Group gegenüber den Entwicklungen auf den Finanzmärkten exponiert. Wechselkurs-, Zins- und Börsenkursschwankungen sowie zu einem geringeren Teil auch Rohstoffpreisveränderungen beeinflussen die Erträge des Unternehmens. Zudem bestehen Kreditrisiken auf den Finanzaktiven und Eventualverbindlichkeiten. 07

8 Die Würth Finance Group misst, steuert und überwacht die finanziellen Risiken durch einen systematischen Risikomanagementprozess. Revisionssicherheit und Informationstransparenz werden durch eine strikte Funktionstrennung zwischen Risiko eingehenden Stellen und Risiko überwachenden Stellen gewährleistet. Die Würth Finance Group verfügt über die kritische Grösse und Finanzkraft, um die zunehmend regulatorischen Anforderungen im Finanz- und Versicherungsbrokerage-Geschäft zu erfüllen und sich dadurch bei den Kunden besser zu positionieren und Marktanteile zu gewinnen. Die wirtschaftliche Kraft der Würth Finance Group ist mit einem Eigenkapital von EUR 283,8 Mio., einem Reingewinn von EUR 14,4 Mio. und Aktiven von EUR Mio. begrenzt (per ). 3. Aussichten und Perspektiven Das Management der Würth Finance Group erwartet für die zweite Jahreshälfte weiterhin wachsende Erträge im Bereich Zentralregulierung. Der Trading- Erfolg wird ungefähr auf Vorjahresniveau erwartet, während der Ertrag aus Wertschriftenanlagen niedriger als im Vorjahr ausfallen wird. Aufgrund der erfolgreichen Emission einer Anleihe mit einem Volumen von EUR 500 Mio. und einem Coupon von 1,0 % am 19. Mai 2015 erhöhen sich die Netto-Zinskosten der Würth Finance Group in den kommenden Monaten bedeutend. Die Kosten werden aufgrund des Anstiegs des Schweizer Frankens sowie höhere einmalige Ausgaben für das Projekt zur Ablösung des Systems zur Abwicklung der internationalen Zahlungen rund 20 % höher ausfallen als im Vorjahr. Dies wird voraussichtlich zu einer Reduktion des Vorsteuergewinns gegenüber dem Vorjahr im einstelligen Prozentbereich führen. Hingegen wird das IFRS-Ergebnis auch künftig stark von der Entwicklung der langfristigen Zinssätze beeinflusst. Sollten diese bis Ende Jahr stabil bleiben, wird das IFRS-Ergebnis der Würth Finance Group durch die Bewertung der Absicherung von derivativen Finanzgeschäften leicht negativ beeinflusst. 08

9 UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE

10 INTERIM CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2015 (IN EUR THOUSANDS) ASSETS Notes Non-current assets Intangible assets Software Property, plant and equipment Operating equipment & furnishings Financial assets Loans to associated companies 6 822, ,443 Loans to external companies 6 1,316 1,370 Other financial assets 74,500 74,500 Deferred tax assets 424 1,815 Total non-current assets 899, ,586 Current assets Receivables from associated companies 6 835, ,870 Loans to family trusts 6 58,000 58,000 Positive fair values of derivative instruments 6 16,123 12,043 Other receivables 5,264 2,384 Income tax receivables 6,067 6,124 Accrued income and prepaid expenses 4,569 4,294 Securities held for trading 71,313 72,637 Cash and cash equivalents 769, ,574 Total current assets 1,765,531 1,322,926 Total assets 2,664,666 2,184,512 EQUITY & LIABILITIES Shareholders equity Capital subscribed and paid in 16,000 16,000 Retained earnings 253, ,942 Foreign exchange difference Net profit for the year 14,358 37,838 Total shareholders equity 283, ,843 Non-current liabilities Bonds issued 4 1,492, ,062 Payables to associated companies 6 2,488 2,326 Liabilities for pension plans 2,834 2,720 Payables to banks 4,799 4,158 Deferred tax liabilities Total non-current liabilities 1,502,600 1,005,281 Current liabilities Bonds issued 4 182, ,609 Payables to associated companies 6 659, ,430 Payables to banks 201 1,238 Provision for taxes 1,600 2,079 Negative fair values of derivative instruments 6 1,366 4,916 Other liabilities 6 22,802 9,465 Accrued expenses and deferred income 10,781 19,651 Total current liabilities 878, ,388 Total equity & liabilities 2,664,666 2,184,512 The accompanying notes are an integral part of this balance sheet. 10

11 INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT AS AT 30 JUNE 2015 (IN EUR THOUSANDS) Notes YTD 2015 YTD 2014 Operating income Interest income 21,654 42,368 Interest expenses 20,699 26,206 Net interest income ,162 Income from factoring activities 7,097 6,769 Income from commission and service fee activities 16,376 14,120 Income from trading activities and financial instruments 3,101 3,531 Other ordinary income 5 4, Total operating income (including net interest income) 31,763 40,963 Operating expenses Personnel costs 8,169 6,926 Other administrative expenses 5,926 5,282 Depreciation and amortisation Total operating expenses 14,240 12,950 Profit before taxes 17,523 28,013 Corporate taxes 3,166 5,711 Deferred taxes 1 1 Net profit 14,358 22,303 INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS AT 30 JUNE 2015 (IN EUR THOUSANDS) YTD 2015 YTD 2014 Net profit 14,358 22,303 Other comprehensive income to be reclassified to profit or loss in subsequent periods Foreign exchange difference Other comprehensive income not to be reclassified to profit or loss in subsequent periods IAS 19 obligation Other comprehensive income (OCI) Total comprehensive income 14,205 21,739 The accompanying notes are an integral part of these income statements. 11

12 INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT AS AT 30 JUNE 2015 (IN EUR THOUSANDS) YTD 2015 YTD 2014 Net profit 14,358 22,303 Depreciation and amortisation Adjustment to provision for taxes 479 3,029 Other expenses and revenues without cash flows 9, (Increase) Decrease in operating assets Receivables from associated companies -91, ,586 Positive replacement values of derivative instruments -4,080-1,024 Income tax receivables 57 0 Other receivables and accrued income and prepaid expenses 1,764 1,864 Increase (Decrease) in operating liabilities Payables to associated companies 38,746 13,060 Negative replacement values of derivative financial instruments 3, Other liabilities and accrued expenses and deferred income 4,468 5,741 Net cash flows from operating activities 111, ,845 Purchase of property, plant and equipment and intangible assets Disposal of property, plant and equipment and intangible assets Purchase of securities 109, ,274 Disposal of securities 111, ,732 Redemption of long-term loans to associated companies 123,655 77,697 Lending of long-term loans to associated companies 148, ,317 Net cash flows from investing activities 22,638 18,155 Repayment of bonds issued, purchase of own bonds 1, ,000 Issue of bonds 497,366 24,443 Proceeds from borrowings 641 4,114 Repayment of borrowings 1, Dividends paid 16,263 11,300 Net cash flows from financing activities 479, ,869 Foreign exchange difference Net increase (decrease) in cash and cash equivalents 345, ,179 Net cash and cash equivalents at the beginning of the period 423, ,473 Net cash and cash equivalents at the end of the period 769, ,294 Net increase (decrease) in cash and cash equivalents 345, ,179 Taxes paid 2,948 1,822 Interest received 29,856 38,598 Interest paid 30,496 45,683 The funds for this cash flow statement comprise cash and cash equivalents. 12

13 INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2015 (IN EUR THOUSANDS) The table below shows the changes in equity in 2014 and in the first half of Capital Retained earnings Currency adjustment At 1 January , , ,426 Net profit for the period ( ) 22,303 22,303 Other comprehensive income Dividend payments 11,300 11,300 At 30 June , , ,928 Total Net profit for the period ( ) 15,535 15,535 Other comprehensive income 1, ,620 At 31 December , , ,843 Net profit for the period ( ) 14,358 14,358 Other comprehensive income Dividends paid 16,263 16,263 At 30 June , , ,785 13

14 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2015 (IN EUR THOUSANDS) 1. Business activities and consolidated companies 1.1 Business activities Würth Finance International B. V. (in these consolidated financial statements together with its subsi diaries referred to as Würth Finance Group) was incorporated in 1987 and is domiciled in Amsterdam, Netherlands. The address of the company is Het Sterrenbeeld 35, P. O. Box 344, NL-5201 AH s-hertogenbosch. The Company has a branch in Rorschach, Switzerland and also has several subsidiaries in Switzerland. The companies belonging to the Würth Finance Group (subsequently referred to as the Group ) are part of the internationally active Würth Group. All share certificates pertaining to Würth Finance International B. V., Amsterdam, are held by Reinhold Würth Holding GmbH, Künzelsau, Germany, which is ultimately owned by family trusts. The Group s core activities comprise providing finance and executing all financial transactions for Würth Group companies in the Netherlands, Switzerland and abroad, but also providing advisory and other services to private clients and SMEs in relation to pension funds and insurance. 1.2 Consolidated companies The interim condensed consolidated financial statements contain the financial statements for Würth Finance International B. V., Amsterdam, and its subsidiaries, which are presented as a single commercial entity: the Würth Finance Group. Subsidiaries that are controlled directly or indirectly by the Group have been consolidated. Subsidiaries are consolidated from the date on which they were acquired by the Group and deconsolidated from the date of disposal. 1.3 Method of consolidation The financial statements comprise the financial statements of Würth Finance International B. V., Amsterdam and its subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions as well as income and expenses resulting from intra-group transactions are eliminated in full. 2. Accounting principles used in this report The unaudited interim condensed consolidated financial statements for the Würth Finance Group as at 30 June 2015 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the statutory information and disclosures contained in the annual financial statements and should therefore be read in conjunction with the 2014 audited consolidated financial statements of the Würth Finance Group. The accounting principles used to produce the interim report are consistent with the principles used to produce the audited annual financial statements for The Group s audited annual report for 2014 was approved by the Management on 20 March 2015 and can be obtained from the head office of Würth Finance International B. V. The present interim financial statements as at 30 June 2015 were approved by the Management of Würth Finance International B. V. on 25 August 2015 and are also available at the head office of Würth Finance International B. V. All reports are also published online on the Würth Finance International B. V. website: Foreign currency translation The financial statements are presented in EUR, which is the Group s functional currency. Transactions in foreign currencies are initially recorded at the functional currency rate applicable on the date of the transaction. Exchange differences arising from such transactions, as well as income resulting from converting monetary assets and monetary liabilities denominated in foreign currencies at the rate of exchange applicable at the balance sheet date, are recognised in the income statement. 14

15 Within the framework of the consolidation, all assets and liabilities of the subsidiaries with the exception of shareholders equity are translated into the presentation currency of the Group at the rate of exchange applicable at the balance sheet date. The individual positions on their income statements are translated into the Group s presentation currency at the average exchange rates for the year. The exchange differences arising on the translation are taken directly to a separate component of equity (foreign exchange difference). Only when a subsidiary is disposed are translation differences recognised in the income statement as part of the sales revenue for that particular foreign operation. Goodwill and fair value adjustments arising from the acquisition of foreign companies are treated as assets and liabilities of these foreign companies and are translated at the rate of exchange applicable at the balance sheet date. Conversion rates US Dollar (USD) Swiss Franc (CHF) British Pound (GBP) Canadian Dollar (CAD) Chinese Renminbi (CNH) Norwegian Krone (NOK) Danish Krone (DKK) Swiss Franc (CHF) average exchange rate Segment reporting As there were no significant organisational changes in the first half of 2015, the segments remained unchanged. The interim financial statements do not contain segment reports. 4. Bonds On 12 June 2014, the company repaid a EUR 300 million bond with an annual 4.75 % coupon. The company issued a EUR 500 million bond under its new EUR 3 billion EMTN programme. The bond was issued on 19 May 2015 and has a term of seven years and a coupon of 1.0 %. 5. Other ordinary income Other ordinary income for the first half of 2015 comprises 4,209 of income from the silent participation and further capital funding in IBB together with fees received for intra-group services (1H14: 258). 15

16 6. Transactions with associated parties As the treasury company for the Würth Group, the Würth Finance Group is responsible for concentrating and optimising global payment flows, managing financial risk and providing funding for the Würth Group companies. Associated parties comprises all Würth Group companies plus the members of the Board of Directors and Management, their families and companies closely associated with them Receivables from associated parties Long-term loans to associated companies 822, ,443 Other financial assets 74,500 74,500 Loans to family trusts 58,000 58,000 Receivables from associated companies 835, ,870 Positive fair values of derivative instruments from associated companies 16,408 11,257 Total receivables from related parties 1,806,185 1,671,070 Payables to associated parties Payables to associated companies 659, ,430 Long-term payables to associated parties 1 2,488 2,326 Payables to family trusts and family related parties 353 1,132 Negative fair values of derivative instruments from associated companies 733 3,309 Total payables to related parties 663, ,197 Transactions with related parties were executed based on standard market conditions. As per the figure for payables to associated companies was misstated. 12,175 is reclassified as accrued expenses and deferred income. 1 Atypical silent partnership of Reinhold Würth Holding GmbH ( atypische stille Gesellschaft according to 230 et. seq. German Commercial Code (HGB)) 16

17 7. Contingent liabilities The Group has issued guarantees, letters of comfort and letters of credit. They represent commitments and contingencies in favour of third parties for associated company liabilities. They include contractual commitments linked to borrowings by Wurth Group of North America Inc. (private placement). Not yet utilised irrevocable lending commitments that have already been made are reported at the nominal value Guarantees, letters of comfort, letters of credit 280, ,597 Total contingent liabilities 280, , Not yet utilised, irrevocable lending commitments 76,504 52,184 Total irrevocable lending commitments 76,504 52, Significant transactions after the reporting date At the time of publication, no transactions have been identified that would have a material impact on the unaudited interim condensed consolidated financial statements of the Würth Finance Group. 17

18 STATEMENT BY THE MANAGEMENT To the best of our knowledge, the interim condensed financial statements give a true and fair view of the assets, liabilities, financial standing and earnings of Würth Finance International B. V. in accordance with the reporting principles for interim financial reporting, and the interim management report accurately pre- sents the company s performance and position and describes the main projected opportunities and risks for the remainder of the financial year. s-hertogenbosch & Rorschach, 26. August 2015 Roman Fust Managing Director Würth Finance International B. V. Patrik Imholz Managing Director Würth Finance International B. V. 18