corporate brochure 2016 - frauenthal · 1 corporate brochure 2016. 2 4 frauenthal group at a glance...

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Corporate Brochure2016

2

Frauenthal group at a glance4

5-year-summary810 A history of success

2226 Air Tanks

27 U-bolts

28 Gnotec

Frauenthal Automotive

3031

Our structure

Our sites

1216 SHT

18 ÖAG

20 Kontinentale

21 Frauenthal Service

Frauenthal Trade

Content

3

Reliability

4

Company Group

74 % Frauenthal Trade

Austria’s leading plumbing andheating supplies wholesaler

26 % Frauenthal Automotive

supplier for theEuropean commercial vehicles

and car industry

Gnotec Airtanks

U-Bolts

2 CONTINENTS

Europe and Asia

7 countries 29 sites

2 divisions

3.121 employees

SHARE OF SALES IN %

4 FRAUENTHAL GROUP AT A GLANCE

5

EUROPEAN LEADER

for chassis component production

AUSTRIAN MARKET LEADER

for wholesale plumbing supplies

Frauenthal Trade

Frauenthal Automotive

Frauenthal Trade comprises Austrian plumbing sup-

plies wholesalers SHT and ÖAG, pipeline and civil

engineering specialist Kontinentale and service spe-

cialist Frauenthal Service. All four operate as inde-

pendent brands.

�SHT is the market and service leader in the whole-

sale plumbing supplies sector, and stands out for

its innovative logistics and customer service solu-

tions. The company also adopts a highly creative

approach to advisory services at its bathroom

showrooms.

�ÖAG is a long-standing Austrian company with a

history dating back some 140 years. Now with a

clear focus on its energy-related expertise, the

wholesaler operates an excellent sales and distri-

bution network and is the second-largest player

on the Austrian plumbing supplies market

�Civil engineering specialist Kontinentale is the

Austrian market leader, with a wide range of

products for municipal infrastructure (such as gas,

water and sewerage systems) and large industrial

plants.

Frauenthal Automotive supplies high-quality, pre-

dominantly steel components to the majority of

Europe’s commercial vehicle manufacturers – with

a focus on heavy and medium trucks – as well as

selected passenger vehicle producers and industrial

clients in the non-automotive sector. The Division has

three product groups.

�The Gnotec Group operates four sites in Sweden

and one each in Slovakia and China. It uses state-

of-the-art equipment for sheet metal punching,

pressing, cutting and welding.

�The airtanks business has one plant each in Ger-

many and the Czech Republic, and is the Euro-

pean leader in the market for steel airtanks used

in braking systems for heavy trucks.

�The Polish facility operated by the U-Bolts busi-

ness is the leading European manufacturer of this

specialist product. As safety components, these

are required to meet strict technical standards.

New components such as wheel studs offer po-

tential for growth.

6 FRAUENTHAL GROUP AT A GLANCE

Frauenthal Holding

Based in Vienna, Frauenthal Holding has a streamlined

organisational structure and is responsible for busi-

ness development at Group and organisational level,

as well as managing the strategic alignment of the

divisions. The head office also performs reporting and

investor relations functions.

Executive Board

Martin Sailer, responsible for the Frauenthal Automo-

tive Division and business development, member of

the Executive Board since 2008.

Wolfgang Knezek was appointed member of the Exe-

cutive Board on 24 September 2015, with responsibi-

lity for the Frauenthal Trade Division.

The role of the holding company

The holding company is responsible for structuring

and managing Group financing, defining the strategic

focus of each division, as well as implementing strate-

gic projects – especially in relation to corporate trans-

actions – and HR policies for senior management. All

operational decisions are taken locally.

Capital Markets

Frauenthal shares have been traded on the Vienna

Stock Exchange since 10 June 1991. The stock was

included in the prime market on 23 July 2007. Ow-

ing to changes in the calculation method for free-float

factors in the Vienna Stock Exchange’s Austrian indi-

ces, Frauenthal shares will be listed on the standard

auction market from 1 May 2015.

Business Development

Both divisions are looking to grow through add-on

acquisitions that will drive forward implementation of

the strategy by adding new customers, expanding the

product portfolio or extending the Group’s geographi-

cal footprint. In the Automotive Division we aim to ac-

quire an additional product platform which will allow

us to utilise our expertise in production and customer

access. The Group will also continue its search for a

new third division. Thanks to the strong operational

performance of existing lines of business, coupled

with restructured financing and our M&A experience,

we remain optimistic that we will achieve this goal.

Human Resources – more significant than ever

The availability of qualified managers is essential,

both for the successful integration of SHT and ÖAG

and for the step-by-step worldwide expansion of our

automotive operations. With this in mind, human

resource management has been a strategic function

at the Frauenthal Group for many years, and senior

executives are responsible for achieving HR-related

objectives. Our leading priorities are identifying and

supporting high potentials, as well as succession plan-

ning and establishing the Group as a top-quality em-

ployer. We also aim to fill key vacancies internally. The

holding company has the task of ensuring the decen-

tralised implementation of personnel policies at oper-

ational level.

7

Speed and flexibility

The structural changes implemented at the Group

since 2012 (disposal of the Industrial Honeycombs Di-

vision and the steel springs business, and acquisitions

of the Gnotec Group and ÖAG AG) demonstrate our

flexibility and ability to handle fundamental changes.

These measures started to bear fruit in 2015. It could

be said that the Group is in better strategic and op-

erational shape than at any other point in its history,

and the basis for additional profitable growth, both

organic and through acquisitions, is in place.

Growth potential in both divisions

In our Trade Division, the goal is to build an Austrian

wholesaler with the potential to record substantial in-

creases in profit by leveraging synergies and increasing

market share through the independent positioning of

the SHT and ÖAG brands. Significant steps were taken

towards achieving synergies and accelerating the pace

of integration during the financial year. The focus at

Frauenthal Automotive is on the gradual expansion of

a supplier that must hold its own in the face of strong

pressure to cut costs in an increasingly globalised in-

dustry. Efficient production, product and process inno-

vation, and extending the Division’s global footprint

are the keys to success. The organisational principle

of establishing largely independent business units

that are close to customers is paying off, laying strong

foundations for additional add-on acquisitions.

FRAUENTHALTRADE FRAUENTHAL

AUTOMOTIVE

FRAUENTHALGROUP

SHT ÖAG

GNOTEC

PRODUCT GROUP

AIR TANKS PRODUCT GROUP

U-BOLTS PRODUCT GROUP

KONTINENTALEFRAUENTHAL

SERVICE

8

IFRS 2015 IFRS 2014** IFRS 2013** IFRS 2012* IFRS 2011*

Summary income statement (in EUR m)

Revenue 790.7 637.4 467.0 509.9 514.2

EBITDA 31.8 35.1 18.6 18.3 24.7

EBITDA adjusted 1) 31.8 26.9 20.9 18.3 24.7

ROS (EBITDA / revenue) 4.0% 5.5% 4.0% 3.6% 4.8%

ROS (EBITDA / revenue) adjusted 1) 4.0% 4.2% 4.5% 3.6% 4.8%

Earnings before interest and tax (EBIT) 17.4 22.0 1.6 7.9 14.5

Earnings before interest and tax (EBIT) adjusted 1) 2) 17.4 15.1 11.2 7.9 14.5

Earnings before taxes (EBT) 11.6 18.0 -2.5 3.2 8.6

Earnings before taxes (EBT) adjusted 1) 2) 11.6 11.0 7.1 3.2 8.6

Profit/loss after tax adjusted 1) 2) 8.8 8.1 4.1

Earnings after tax from continuing business operations 8.8 15.1 -5.4 1.3 6.1

Earnings after tax from discontinued business operations 0.0 -16.9 -25.5 37.7 7.6

Profit/loss after tax 8.8 -1.8 -30.9 39.0 13.7

Operating profit before working capital changes 24.2 10.6 16.9 11.0 31.1

Summary balance sheet (in EUR m)

Non-current assets*** 150.5 168.9 160.9 159.0 142.8

Current assets *** 249.6 204.1 196.3 181.5 221.8

Total assets 400.2 373.0 357.2 340.5 364.6

Debt 304.8 287.4 265.6 213.0 265.8

Equity 95.3 85.6 91.6 127.5 98.9

Equity ratio (%) 23.8% 22.9% 25.7% 37.4% 27.1%

Equity of continuing business operations - 102.4 - - -

investment 3) 31.5 17.0 13.1 15.2 13.7

as % of revenue 4.0% 2.7% 2.8% 3.0% 2.7%

Average head count 4) 3.121 2.666 2.231 2.613 2.368

Per employee ratios (in TEUR)

Revenue 253.3 239.1 209.3 195.1 217.1

Earnings before interest and tax (EBIT) 5.6 8.3 0.7 3.0 6.1

Operating profit before working capital changes 7.7 4.0 7.6 4.2 13.1

Shares in issue 9,434,990 9,434,990 9,434,990 9,434,990 9,434,990

Treasury shares -923,499 -943,499 -943,499 -943,499 -272,456

Shares in circulation 8,511,491 8,491,491 8,491,491 8,491,491 9,162,534

1) 2014: Adjustment of EUR 9.5 m for reversing negative differences concerning ÖAG and Gnotec Motala as well as extraordinary depreciation of inventories of EUR 1.3 m 2013: Adjustment of EUR 2.3 m for deconsolidation of Frauenthal Automotive Ahlen GmbH and Frauenthal Automotive Westphalia GmbH due to the disposal of the companies 2) 2014: Adjustment for non-scheduled depreciation of fixed assets 2013: Adjustment for EUR 7.3 m for depreciation of assets (including properties) 3) 2014 and 2013: Investments do not include any additions from the sold stabilizers and leaf springs business4) 2014: Average head count includes 346 employees from ÖAG due to its acquisition on 30 June 2014 2013: Average head count has been adjusted for the sold stabilizers and leaf springs business* The disposal of the Industrial Honeycombs division was completed on 1 June 2012. The gains on disposal and the profit up to the time of the disposal are included in the profit from discontinued operations in accordance with IFRS 5. The figures of 2011 and 2012 have been adjusted accordingly. ** The disposal of the stabilizers and leaf springs business was completed on 23 December 2014. The gains on disposal and the profit up to the time of the disposal are inclu-ded in the profit from discontinued operations in accordance with IFRS 5. The previous year‘s figures have been adjusted accordingly. *** Adjusted balance sheet figures according to IAS 8.42

5-YEAR-SUMMARY

9

EARNINGS (IN EUR M)

REVENUE (IN EUR M)

AVERAGE HEAD COUNT

SHARE OF SALES 2015 (IN EUR M)

2011 2012 2013 2014 2015

514,2

Disposal of the stabilizers and leaf

springs business

509,9

790,7

467,0

Acquisition ofof ÖAG AG


637,4

2014

26,9

15,1

2013

20,9

11,2

2012

18,3

7,9

2011

24,7

14,5

Acquisitionsof the Gnotec Group



2015

31,8

17,4

EBIT adjusted

EBITDA adjusted

2011 2012 2013 2014 2015

2.368

Disposal of the stabilizers and leaf

springs business

2.6662.613

2.231



3.121

26 % (203,5)Frauenthal Automotive

74% (587,2)Frauenthal Trade

790,7Frauenthal group

10

2015 Comprehensive restructuring measures im-

plemented at the Frauenthal Group during the course

of the previous year are bearing fruit and their effects

are reflected in the results for 2015. Additional positive

effects will be felt in the years to come. On 24 Septem-

ber Wolfgang Knezek is appointed to the Frauenthal

Holding Executive Board. Mr Knezek, a member of the

Executive Board Member of SHT Haustechnik AG since

2002, takes up the role previously held by Hans-Peter

Moser and assumes responsibility for the Frauenthal

Trade Division. 2015 Frauenthal Service GmbH is

founded as the service provider for the independent

SHT, ÖAG and Kontinentale brands. Its service portfolio

includes logistics, IT, continuous improvement and per-

sonnel management, as well as product management.

2014 The acquisition of Austrian plumbing supplies

wholesaler ÖAG from Wolseley on 30 June 2014 sees

the Frauenthal Trade Division overtake the Automotive

Division to become the largest in the Group. In October

the Gnotec Group acquires Termoregulator, a Swedish

manufacturer of metal formed parts and assemblies. On

23 December Frauenthal Automotive sells its heavy steel

springs and stabilisers business to TBC Netherlands.

2013 The Frauenthal Group acquires Swedish

pressed, stamped and welded metal components pro-

ducer Gnotec AB, which has plants in Slovakia, Sweden

and China. The loss-making airtanks factory in Ahlen,

Germany, is disposed of in April. SHT Group merges its

two Slovakian wholesale plumbing suppliers to form

SHT Slovensko.

2012 The Industrial Honeycombs Division is sold to

Japanese technology group IBIDEN on 1 June, 2012.

The Frauenthal Group continues to pursue its growth

strategy, adding Worthington Cylinders a.s. to the

Frauenthal Automotive Division, while Technopoint

Sanitrends s.r.o. and GAMA Myjava s.r.o. become part

of SHT.

2011 Successful placement of a EUR 100m bond.

Thanks to the continued recovery of the commercial

vehicles segment and solid performance of SHT, the

Frauenthal Group starts posting excellent results once

again.

2010 Following extensive restructuring during the

crisis in 2009, the Automotive Components Division

returns to the black. Wholesale Plumbing Supplies and

Industrial Honeycombs report record results.

2009 Automotive Components feels the full force

of the economic crisis. Disposal of Styria Federn GmbH,

Düsseldorf, along with its Serbian subsidiary Styria Gib-

njara Kraljevo. Closure of the plant in Ravne, Slovenia

(Styria Vzmeti) and the Styria Elesfrance airtank and

stabiliser factory in St. Avold, France.

2008 SHT opens three ISC locations and a Bäder-

paradies bathroom showroom, and launches the Y-LOG

order-picking system. Martin Sailer and Hans-Peter

Moser replace Winfried Braumann and Michael

Ostermann on the Executive Board.

Motion

10 A HISTORY OF SUCCESS

11

2007 Closure of the Linnemann-Schnetzer Hungary

airtank factory. Acquisition of U-bolt manufacturer

Pol-Necks in Toruń (PL) as well as spring manufacturer

A.D. Fabrika Opruga Styria Gibnjara Kraljevo (RS). SHT

Haustechnik AG acquires heating supplies wholesaler

Röhrich. Frauenthal shares begin trading on the Vienna

Stock Exchange prime market on 23 July.

2006 Closure of the spring factory in Billnäs (FI).

Expansion of the Frauenthal facility for production of

diesel catalysts. Hans-Peter Moser is appointed to the

Executive Board. A ten-to-one share split is resolved.

2005 Placement of a EUR 70m corporate bond.

Acquisition of Thyssen Krupp Automotive’s European

truck springs business Acquisition of leading Austrian

plumbing supplies wholesaler SHT Haustechnik AG

from Leithanien Investment Group S.A.

2004 Acquisition of the Linnemann- Schnetzer

Group, which makes up the Frauenthal Group’s

Automotive Components Division alongside the Styria

Federn Group.

2003 Acquisition of Finnish spring manufacturer

Styria Jouset Oy (Billnäs) from Imatra Steel.

2002 The Group is reorganised as a holding com-

pany for industrial investments, Frauenthal Holding AG.

Acquisition of the Styria Federn Group. Truck compo-

nents become the Group’s largest line of business.

2001 The insulator business is sold to The Riverside

Company, an American private equity firm. Porzellanfa-

brik Frauenthal GmbH, with its catalyst and non-cata-

lytic honeycomb businesses, remains part of Frauenthal

Keramik AG.

1998 Ventana acquires 75.1 % of the CERAM

Group.

1996 The Frauenthal Keramik AG Group merges

with Tridelta Technische Keramik GmbH to form the

Ceram Holding Group, domiciled in Jena, Germany.

1991 Frauenthal Keramik AG is listed on the

Vienna Stock Exchange following an IPO.

1990 Takeover of Frauenthal Keramik AG and

formation of the CERAM Group.

1985 Frauenthal begins manufacturing SCR cata-

lysts. Later, casting filters and heat storage media are

added to the honeycomb ceramics product range.

1974 The company is sold to the Swedish EUROC

Group, ushering in a period of innovation and new

product lines.

1921 Ludwig Neumann founds Erste Österreichi-

sche Porzellanfabrik. During the 1950s the company

focuses on its core competence – the production of

hard porcelain high-voltage insulators.

Motion

11

12 FRAUENTHAL TRADE

Frauenthal Trade comprises Austrian plumbing supplies wholesalers SHT and ÖAG, pipeline system and civil en-gineering specialist Konti-nentale and service company Frauenthal Service.

SHT has been part of the Frauenthal Group since

2005, while ÖAG was acquired in mid-2014. Both

operate as independent companies and brands. ÖAG

also has a civil engineering and industrial business,

which is operated by Kontinentale. Frauenthal Ser-

vice offers a broad portfolio of services including IT,

continuous improvement and personnel manage-

ment, as well as product management for the three

trading companies. At EUR 587.2m, the Division ac-

counted for around 74 % of consolidated annual rev-

enue, and contributed EBITDA of EUR 18.5m.

Integration – laying the foundations for success

The Katamaran integration project was launched

immediately after the Group’s acquisition of ÖAG in

mid-2014 to boost the long-term competitiveness of

ÖAG and SHT. Its aims included reducing costs for

logistics, inventory management and IT, as well as de-

livering economies of scale. The project was brought

to a successful conclusion in the first quarter of 2016

after a year and a half of hard work and significant

investment. Extensive involvement of employees

from both companies and all levels of the respective

hierarchies was crucial to its success, while customers

benefited from improved quality and service.

Multi-brand strategy

Frauenthal Trade has implemented a multi-brand

strategy in order to underpin the long-term mar-

ket positions of the successful SHT, ÖAG and

Kontinentale brands. Clear positioning with an em-

phasis on the strengths and USP of each brand forms

the basis of our approach. Market and innovation

leader SHT offers highly innovative advisory ser-

vices at its bathroom showrooms, while ÖAG places

a particular focus on its energy-related expertise.

Kontinentale serves commercial and industrial com-

panies, municipal water suppliers and wastewater

treatment companies, as well as manufacturers of

industrial pipelines. Its diverse portfolio adds depth to

Frauenthal Trade’s customer structure. Enhancing the

service portfolio and service quality is a vital consider-

ation throughout the Division.

Frauenthal Trade – a strong competitor on the wholesale market

“Our multi-brand strategy is bearing fruit: despite a challeng-ing economic climate we have increased market share and posted improvements in key indi-cators. We will continue to focus on enhancing our already excel-lent quality – which is vital to our success – and expect integration to bring further improvements.”

Wolfgang KnezekFrauenthal Holding AG Executive Board member in charge of the Frauenthal Trade Division

13

Human resources strategy

EMPLOYEES – A KEY RETAIL SUCCESS FACTOR

An attractive employer �Identifying and retaining leading specialists and

managers

�High levels of employee satisfaction

�CSR initiatives including myFamily, health

promotion and burnout prevention

Highly skilled employees �Internal training and development in line with

the Group’s needs and individual job require-

ments

�Enhancing and deepening existing skills (e.g.

process optimisation) and developing new

capabilities such as technological innovation and

online expertise

�Talent management and succession planning

Leadership initiative �Leadership as a driving force for growth

�Standards for management selection, support

and recruitment

Human resource management �Adapted to corporate strategy and annual targets

�Flexible, made-to-measure and require-

ment-based HR support

Frauenthal Trade

Brands: SHT, ÖAG,

Kontinentale, Frauenthal Service

Markets: Austria and Slovakia

Market position: market leader in Austria

and number three in procurement terms in

the German-speaking countries

Locations: 90 cash and carry stores across

Austria, 27 showrooms

Revenue in 2015: EUR 587.2m

EBITDA in 2015: EUR 18.5m

Employees: 1,542, including 116 appren-

tices

FRAUENTHALTRADE

SHT ÖAG KONTINENTALEFRAUENTHAL

SERVICE

14 FRAUENTHAL TRADE

Frauenthal Trade

The Frauenthal Trade Division supplies state-of-the-art technical building services and innovative plumbing solutions through its strong SHT and ÖAG brands.

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5

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67 8

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1. HEATING BOILERSModern heating boilers can help to significantly re-

duce energy consumption, leading to substantial cost

savings. And what’s more, they are also good for the

environment.

2. HEAT PUMPSHeat pumps use ambient heat from air, water and

soil. They are ideal for heating, as well as a cost-ef-

fective, eco-friendly cooling source.

3. SOLAR WATER HEATINGThe sun’s rays can be utilised for heating and in day-

to-day water consumption. Since solar arrays do not

deliver sufficient energy for warm water throughout

the year, they are used in combination with conven-

tional heating systems.

4. WATER PURIFICATIONSpecialised water purification products ensure per-

fect water quality for a range of household uses,

such as cooking, showering and heating.

5. RAINWATERRainwater is collected from the roof of the house,

and then filtered and stored either for domestic use

or for watering gardens. This saves valuable drinking

water and cuts detergent use, and the water has a

lower limestone content.

6. RADIATORSOur standard radiators heat up quickly and are cheap

to buy. A wide selection of decorative radiator de-

signs is currently available.

7. PELLET STOVESPellet stoves provide sustainable, cheap heating.

They are fired using domestically produced wood, are

CO2 neutral and stand out for their low fuel costs.

8. COMPLETE BATHROOM SOLUTIONSBathrooms are gaining more and more attention as

they develop into spaces for living and relaxation.

There is strong demand for made-to-measure bath-

rooms tailored to meet specific tastes, needs and

wishes.

9. WALL HEATINGSurface heating units integrated into walls supply

living spaces with cosy radiant heat and produce

virtually no fine particulate emissions. Wall heating

systems can also be used for cooling.

10. VENTILATION SYSTEMSControlled living space ventilation for apartments

and houses: depending on the equipment installed,

a heat exchanger extracts heat from exhaust air and

uses it to warm supply air.

11. UNDERFLOOR HEATINGInvisible and efficient, underfloor heating is ideal for

use in combination with low-heat systems such as

heat pumps and solar collectors.

12. PHOTOVOLTAIC SOLAR THERMAL ENERGY SYSTEMSPhotovoltaic arrays capture the sun’s energy and

transform solar radiation directly into electricity.

16 FRAUENTHAL TRADE

SHT offers its plumbers an excellent distribution net-work, state-of-the-art e-busi-ness solutions and a highly innovative approach to cus-tomer advice at its bathroom showrooms.

As a leading wholesaler, SHT offers ideal advisory

solutions to the approximately 3,500 plumbing spe-

cialists it serves. SHT’s success is down to a combi-

nation of first-class customer care and innovative,

practical tools. The unique service provided by the

Bäderparadies showrooms is another factor behind

its stable growth. This exceptional level of service as-

sures the continued loyalty of existing partners while

constantly attracting new customers. The close coop-

eration between SHT and Frauenthal Services delivers

higher-quality services, better focus and continu-

ous improvement for customers. Other advantages

included peerless logistics and the fact that some

35,000 items out of 700,000 articles in the overall

range are permanently in stock.

SHT places focus on Bäderparadiese showrooms

The grand opening of the Bäderparadies showroom

in Salzburg’s Panzerhalle marks the launch of SHT’s

new focus on bathroom planning services. The new

strategic focus prioritises real-life bathroom displays

while drawing on staff expertise and the technolo-

gies of the future.

Composite energy label solution developed

In 2015 SHT launched the mySHT Label.Link. This

simple-to-use online tool generates the composite

energy label and the corresponding data sheets, ena-

bling plumbers to comply with mandatory ErP guide-

lines.

SHT – the Austrian market and innovation leader

Founded: 1991

CEOs: Wolfgang Knezek, Beatrix Pollak

Locations in Austria �Six logistics centres powered by

Frauenthal Service

�Seven sales outlets

�Over 40 Installateur-Service-Center (ISC)

(cash and carry stores)

�11 SHT Bäderparadies bathroom

showrooms

�Six heating and energy advice centres

�One heating showroom

www.sht-gruppe.at

17SHT

Leading employer and Superbrand awards

As an independent commercial network, the Leitbe-

triebe Austria platform for leading employers sends

out a strong signal in terms of quality, innovation and

long-term success. SHT joined this key network in

June 2015, and was awarded the Superbrand Austria

title for the second time during the year.

New dimension of bathroom planning

Increased digitisation and the growing proportion

of customers who check the internet first calls for

an innovative approach to customer advice at the

bathroom showrooms. Our aims is to offer the ideal

blend of high-quality advisory services, innovative

technology and reliable partners. Customers who

use the website have the option of setting up their

personal avatar and profile. The initial ideas behind

their dream bathroom are sketched out using the

Bäderparadies online planning tool, while a new

Bäderparadies app provides an additional source of

inspiration. During the subsequent consultation the

initial configuration can be fine-tuned interactively.

State-of-the-art virtual reality technology helps to

create an unusual effect. Using 3D goggles, consum-

ers and the bathroom consultant can experience the

bathroom in near true-to-life detail.

“We proved our mettle in a highly challenging trading environment in 2015. We have continued to fine-tune the SHT brand and are building up a loyal following among our partners with our innovative solutions and reliable service.”

Beatrix PollakSpeaker of the Executive Board of SHT Haustechnik AG

18 FRAUENTHAL TRADE

As a wholesaler of plumbing supplies and pipe systems, ÖAG serves all sectors of the market – from plumbers to industrial customers and municipalities. In future, the strategic focus will be on its energy-related expertise.

This traditional brand is currently Austria’s sec-

ond-largest wholesale plumbing supplier. ÖAG is a

long-established Austrian company with a history

dating back 140 years. It offers ideal home solutions

under one roof, with a clear focus on heating and

plumbing supplies. Nine EnergieCenter locations

provide expert technical and advisory solutions for

small and medium-sized plumbers and, increasingly,

end-users. Plumbers will find everything they need

for their day-to-day requirements at the 45 IZ plumb-

ing centres and the three IZ counter sales facilities.

Thanks to an effective sales team and excellent ad-

visory services, combined with a partnership-based

approach, the IZ plumbing centres have established

a reputation as reliable partners. ÖAG also operates

Austria’s most extensive network of bathroom show-

rooms. The highly trained customer advisers at the

15 bathroom centres also take the time to help cus-

tomers strike the right balance between functionality

and design criteria. Special 3D planning software en-

ables customers to visualise the finished bathroom.

Successful year in 2015

ÖAG picked up significant momentum in 2015. The

Schlauer Fuchs customer loyalty programme and

the Wiener Wiesn Fest event were among the year’s

most successful marketing activities. Frauenthal-Ser-

vice, which operates the most innovative, most tech-

nologically advanced and largest logistics network in

the industry, gives ÖAG a decisive competitive ad-

vantage. Since February 2016 customers have 40 %

more items at their disposal, and 35,000 articles are

now available for next-day delivery nationwide if they

are ordered by 6pm.

ÖAG – full of energy

“ÖAG is back: customers trust us, we offer a truly first-class service, and our revenue was up significantly in the second half of 2015. Our new focus – energy – will ensure that we are well placed to meet the demands of the future.”

Thomas StadlhoferFrauenthal Handel AG (ÖAG) Executive Board member

Founded: 1871

CEOs: Peter Scheiblauer, Thomas Stadlhofer

Nationwide sales network in Austria: �45 IZ plumbing centres (cash and carry

stores)

�3 IZ counter sales facilities

�15 bathroom showrooms

�9 EnergieCenter locations

www.oeag.atwww.oeag-energie.at

19

Objectives for 2016

Strategic focus on energy: energy centres �Comprehensive face-to-face support for heating,

ventilation and air-conditioning solutions, as well

as decentralised electricity generation

Strengthening own brands �COMFORT: 627 new items thanks to new

products and changes in the standard range

�COMDURO: Sliding sleeve systems and under-

floor heating

Expansion and restructuring of the IZ cash and carry plumbing centres

�Relocations and opening of new cash and carry

stores

�Incorporation of the counter sales facilities into

the IZ network

�Improved product presentation and uniform

appearance

�Image campaign through the IZ Cup (sailing

regatta in the Adriatic with 55 boats and more

than 300 competitors)

Corporate design relaunch �New design for ÖAG as an independent

Frauenthal Trade brand with the EnergieCenter,

Installateurzentrum and BäderCenter sales

channels

Focus on online sales �Webshop relaunch and ÖAG tools

20 FRAUENTHAL TRADE

Kontinentale serves commer-cial and industrial companies, municipal water suppliers and wastewater treatment com-panies, as well as manufac-turers of industrial pipelines used to transport solid, liquid and gaseous materials.

Kontinentale is a market leader and provides one-

stop service for its customers, including professional

consultation, a broad product range, optimal solu-

tions and support in the project planning phase.

Enhancing customer benefits is the top priority, and

the company achieves this through a combination of

excellent service and consistently high availability. As

experts in managing large-scale projects, the com-

pany puts the very latest solutions at the disposal of

its industrial, environmental technology and munici-

pal engineering customers.

Optimal support thanks to wide-ranging expertise

Kontinentale is synonymous with professional con-

sultation and customer support, and a high degree

of expertise. The company invests in training and on-

going staff development activities to retain its com-

petitive edge. High-profile, long-standing working

relationships demonstrate that Kontinentale is a relia-

ble and stable partner for its customers and suppliers.

Objectives for 2016

�KONTI 110 sales drive project

�Focus on profitable product and customer

segments

�Enhancing employee skill levels through training

and personal development

�Exploiting economies of scale in procurement

with the Frauenthal Trade Group

Kontinentale – number one for valves and pipeline systems

“Although there was a marked decrease in the number of large-scale projects in 2015, our day-to-day operations were extremely successful. And we want to continue this first-class performance this year. Proactive, flexible and professional interac-tion with our customers is para-mount.”

Peter ScheiblauerFrauenthal Handel AG (ÖAG) Executive Board member responsible for Kontinentale

Founded: 1886

Management: Peter Scheiblauer

Customers: industrial companies, com-

mercial operations, plant manufacturers,

construction firms, wastewater processing

companies, and gas and water utilities r

Products and services: �Extensive product portfolio

�Professional advisory services

�In-house pipe coating plant and valve

system workshop

�ISO 9001-certified quality management

for the past 20 years

�Member of ÖVGW, GRIS, ÖGL, FIWA,

FIGA and Edelstahlrostfrei

Logistics network: at the start of 2016

Frauenthal Service assumed responsibility for

the Division’s entire vehicle pool and inven-

tory management

www.kontinentale.at

21

A subsidiary of Frauenthal Holding, Frauenthal Service is the service provider for the independent SHT, ÖAG and Kontinentale brands.

The company has around 700 employees and focuses

exclusively on centralised, service-related tasks. It of-

fers a broad portfolio of services including logistics,

IT, continuous improvement and personnel manage-

ment, as well as product management. Nationwide

logistics ensure excellent availability and unparalleled

precision. Thanks to end-to-end product manage-

ment, the range is perfectly aligned to customers’

highly diverse requirements. The company’s IT de-

partment is responsible for delivering the necessary

technical framework. Practice-oriented staff training

and development measures underpin the team’s ex-

pertise. Sales and customer support activities are the

sole responsibility of the SHT, ÖAG and Kontinentale

brands.

Objectives for 2016

Operational excellence: implementation of the joint

IT and logistics infrastructure in order to further ex-

pand the portfolio of services offered to customers.

Frauenthal Service – the industry’s largest logistics specialist

Founded: 2015

Management: Wolfgang Knezek,

Beatrix Pollak, Peter Scheiblauer

The industry’s largest logistics special-ist and the third-largest in the Ger-man-speaking world

�3,500 delivery stops every day with more

than 200 trucks

�70 % of deliveries made before 9am

�35,000 stock articles, 95,000m² of

warehousing space

�product range of more than 700,000

articles

�6 logistics centres

“Frauenthal Service delivers the ideal service for our sales brands. Following a successful launch, in 2016 we will be con-centrating on optimising ongoing operations and the considered in-troduction of additional services.”

Wolfgang KnezekFrauenthal Holding AG and CEO of Frauenthal Service GmbH

22 FRAUENTHAL AUTOMOTIVE

Frauenthal Automotive is a premium supplier and devel-opment partner to automotive OEMs, with a total of eight production sites in five differ-ent European countries, as well as one in China.

The Division is a market leader in each of its product

segments. It comprises four business units: U-bolts,

airtanks, pressed, stamped and welded components

(Gnotec). A diversified customer base, entering po-

tential new markets with innovative products and

a strong emphasis on the aftermarket business are

central to each business unit’s strategy. In 2015 Frau-

enthal Automotive had 1,566 employees and gener-

ated revenue of EUR 203.5m.

Growing demand

The Division put in a strong operating and strategic

performance in the year under review, and saw sig-

nificant growth in its key markets for the first time

since 2014. This was mainly due to a marked recov-

ery in southeast European markets, where there is

substantial pent-up demand, particularly for heavy

commercial vehicles. There was also significant

growth in the UK, which contributed to a 12.4 %

increase in demand in the EU commercial vehicle

market, and an improvement of 19.4 % in the heavy

commercial vehicle market – Frauenthal Automotive’s

most important segment. Gnotec’s key passenger

vehicle sub-market grew by 9.3 % thanks to strong

performance by the business unit’s main customer.

Added impetus on the demand side was reflected in

a EUR 2.1m rise in divisional earnings, to EUR 15.2m.

Investments aimed at boosting productivity in recent

years have also had a positive effect.

New structure bearing fruit

Systematic implementation of a new organisational

structure featuring independent business units,

which was introduced at the start of the year, has

proved its worth internally, and in our customer re-

lationships. Bundling all resources, in particular key

account management, technical sales, product de-

velopment, continuous improvement and quality

management, in the different product segments has

resulted in efficient in-house processes, and impor-

tantly in swift, targeted and results-driven coopera-

tion with customers, who appreciate these factors.

Technical expertise in products and production pro-

Frauenthal Automotive – premium quality for demanding customers

“2015 was a successful start to a bright future where growth in our core automotive operations will be supplemented by additional orders in the non-automotive and aftermarket businesses.”

Martin SailerFrauenthal Holding AG Executive Board member in charge of the Frauenthal Automotive

23

cesses is vital to securing new orders – as reflected in

an impressive increase in new contracts. Local man-

agement bears full responsibility for earnings perfor-

mance and strategy implementation.

Continuous cost reductions

Maintaining and expanding customer relationships

over the long term depends upon continuously driv-

ing prices and costs downwards. Even in markets

where the Division holds a leading position, generat-

ing cost savings by means of continuous productivity

gains, reduced purchase prices and product improve-

ments, and passing these on to customers – at least

in part – is essential. The European sites enable the

Division to remain close to its customers, offer out-

standing quality and logistics, and use its technical

expertise in order to enhance products in collabo-

ration with customers. The ability to cut costs and

prices, including those of mature products, is vital to

sustaining long-term customer relationships.

China – a strategic market

As a premium supplier of goods, mainly to the Eu-

ropean market, Frauenthal Automotive faces similar

challenges in all of its product groups. Globalisation

of the leading OEMs’ supplier bases has given rise to

risks and opportunities. Gnotec’s Chinese plant has

enhanced Frauenthal Automotive’s attractiveness for

European OEMs which either require products for

their production facilities in the country or are plan-

ning to expand to China. Although growth forecasts

for China, and for its premium passenger vehicle

market, have been revised sharply downwards, the

country remains the Division’s main growth market

by some distance. A cautious, but also long-term

commitment to this market is crucial to Frauenthal

Automotive’s strategic position.

Market position: market leader in its prod-

uct segments

Production sites: total of eight in five Euro-

pean countries and one in China

Business units: �Gnotec: pressed, stamped and welded

components

�Steel airtanks, and aluminium and special

steel airtanks for braking systems

�U-bolts

Customers: European commercial and pas-

senger vehicle manufacturers, and industrial

companies that require high quality products

Revenue in 2015: EUR 203.5m

EBITDA in 2015: EUR 15.2m

Employees: 1,566

FRAUENTHALAUTOMOTIVE

GNOTEC AIR TANKS U-BOLTS


1. PRESSED, STAMPED AND WELDED PARTSA wide range of pressed, stamped and welded metal

components are used in passenger and commer-

cial vehicles, including mudguards, battery clamps,

mounting brackets, housings for airbags and seat

belts, boot locks and heat shields.

2. AIR TANKSAir tanks form part of truck and trailer compressed

air braking systems and auxiliary equipment. The di-

vision develops and produces custom, space-saving

solutions from aluminium, steel and stainless steel,

with volumes ranging from 0.1 to 120 litres.

3. U-BOLTSU-bolts are U-shaped mounts used to attach springs

to axles. They are critical to the safety of trucks.

Lightweight U-bolts are used to mount the springs

on vehicle axles. The materials used, and the way

they are processed and treated, determine the qual-

ity and safety of U-bolts and the length of their use-

ful life – this requires full compliance with the VDA 6

quality management system standard.

Frauenthal AutomotiveFrauenthal Automotive is the leader in its various product markets and a reliable partner for Europe’s commercial and passenger vehicle manufacturers.

1

1

2

1

3

25

New product developments driving growth

One of Frauenthal Automotive’s core strategic growth objectives is to devel-op new products and reach out to new customer groups.

Potential customers besides OEMs in the heavy com-

mercial vehicles market are in the passenger vehicle

segment (Gnotec), trailer manufacturers (U-bolts, air-

tanks) as well as non-automotive industrial customers

(all product areas). In the non-automotive segment,

the Division is targeting customers with similarly high

quality, logistics and technical demands as their auto-

motive-sector counterparts. Frauenthal Automotive

introduced numerous new products in 2015 – some

examples are described below.

Rotor blade pins and anchor bolts for wind farmsA wind turbine requires two kinds of

U-bolts: one to fix the tower and one

to move the rotor. Both components

can be produced at Toruń using ex-

isting equipment. A single wind tur-

bine requires around 250 rotor blade

pins.

Buffer tanksBuffer tanks help to reduce the noise

from trucks. Developed to customer

specifications, this proprietary de-

sign is produced at the plant in

Hustopeče. The buffer ensures the

uniform flow of compressed air be-

tween the compressor and the air

dryer.

Seat adaptersGnotec developed these complex

new components for Scania. The

new cabin which Scania will intro-

duce in 2017 called for a redesign of

the seat adapter on which the seat

is mounted. The set presented by

Gnotec won the order.

Mobile fire extinguishersThere are a wide range of appli-

cations for airtanks outside the

automotive industry. Some manu-

facturers of mobile fire extinguishers

are already customers of Frauenthal

Automotive – this segment holds sig-

nificant potential for the future.

Wheel studsWheel studs are threaded fasten-

ers that hold on the trucks’ wheels.

They are mounted directly to the ve-

hicle hub usually through the brake

drum or brake disk. The potential for

this segment is huge since one truck

requires several dozen wheel studs.

An initial order has already been re-

ceived for this product.

25


Frauenthal Automotive is the European market leader in the production of airtanks, and operates two produc-tion facilities for this product group in Germany and the Czech Republic.

A substantial new order from an OEM has enabled

this line of business to significantly strengthen its

standing in the market. At the same time the re-

sulting high capacity utilisation allows the airtanks

business to pass on productivity gains to customers,

further underpinning its long-term competitiveness.

The investment programme was continued at both

locations, with automation and layout optimisation

of production processes and product improvements

in cooperation with customers due to take centre

stage. One of the overarching strategic goals of the

airtanks business is to diversify its customer portfolio

by targeting potential new orders from trailer manu-

facturers and industrial customers outside the auto-

motive sector.

Focuses in 2016

�Achieving efficiency gains based on the current

investment programme

�Development and introduction of pioneering

products

�Establishment of new sales channels

�Reintroduction of the Linnemann Schnetzer

brand

Airtanks – the European market leader

Market position: number one in Europe

with a market share of over 85 %

Production sites: Elterlein, Germany, and

Hustopeče, Czech Republic

Products: aluminium, steel and special steel

airtanks (with capacity of 0.1–120 litres)

Customers: European manufacturers of

commercial vehicles and trailers

“Our product group is extremely well placed in the automotive industry. In line with our slogan of ‘Keeping up the pressure’ we have been pressing ahead with the expansion of our non-automo-tive business and new products”

Jörg Hessler and Matthias ThalheimManaging Directors

27

In 2015 the U-bolts business unit supplemented its existing activities with a number of long-term orders. It also suc-cessfully entered the wheel stud market.

In the first quarter of 2016, the production facility in

Toruń, Poland, was busy gearing up to start supplying

light U-bolts for light commercial vehicles to a major

customer in the passenger vehicle segment. Develop-

ing quality management systems was another core

focus and the facility now meets the strictest stand-

ards for the automotive industry in terms of quality,

productivity and logistics. With this solid foundation

in place, there is a strong chance of winning signif-

icant new orders for light commercial vehicles. The

substantial market for dynamically loaded mounting

elements (bolts and screws for a full range of appli-

cations and in various dimensions) offers interesting

potential for growth, as demonstrated by an initial

order from an axle manufacturer for a series produc-

tion shipment of wheel studs. Activities are also fo-

cused on entering the wind power segment, which is

another market with strong potential for the future.

Focuses in 2016

�Growth in OEM U-bolt market

�Industrialisation of new orders

�Introducing new products and entering fresh

markets such as wind energy

U-bolts – number one with new components

“In 2015 our new structure laid the foundations for future growth and we were able to establish a foothold in new markets. We strongly believe that we are well placed to meet future challenges with our team.”

Amit Bedi and Grzegorz KlechaManaging Directors

Market position: European market leader in

U-bolts for trucks, buses and trailers

Production sites: Toruń (Polen)

Products: �light and heavy U-bolts, hot-formed and

cold-formed

�wheel studs

Customers: European manufacturers of light

and heavy commercial vehicles, buses and

trailers


Gnotec performed very well once again in 2015 and landed several significant new orders from Europe and China.

Gnotec produces pressed, stamped and welded

components at its facilities in Sweden, Slovakia and

China. During 2015 the company won a number of

new orders – some major – from new and estab-

lished customers alike. Gnotec secured additional

orders, particularly for its production facility in China,

for its Chinese customer’s new vehicle models for

2017 onwards. In Europe the acquisition of Jaguar

Land Rover as a customer represents a significant

milestone in the passenger vehicle segment. This ini-

tial order offers considerable growth potential.

Focuses in 2016

�Successful launch of new projects

�Aligning organisational structure and capacity to

growth

Gnotec – strong order book

“The acquisition of Jaguar Land Rover as a new customer shows how well positioned we are, both in terms of our performance and our geographical footprint.”

Stefan OttossonCEO

Market position: leading manufacturer of

pressed, stamped and welded parts for the

automotive and other industries

Six production sites: �Sweden: Habo, Kinnared, Reftele and

Motala

�Slovakia: Cadca

�China: Kunshan

Products and services: �development and production of metal

components for automotive and

industrial applications

�about 4,000 different products

�automated pressing, laser cutting,

welding and other processes

Customers: leading OEMs such as Volvo

Trucks, Volvo Car Corporation, Scania, Re-

nault, Jaguar Land Rover, Autoliv, JBT Food-

Tech and Assa Abloy

29Niklas Malmström, Frauenthal Automotive

30 OUR STRUCTURE

OUR STRUCTURE Status as of 30. 06. 2016

FrauenthalHolding AGVienna (A)

FrauenthalLiegenschafts-verwaltungGmbHElterlein (D)

FrauenthalImmobilienGmbHVienna (A)

Frauenthal Beteiligungs- verwaltung AGPerchtoldsdorf (A)

100% 100%

Frauenthal OstBeteiligungs-GmbHVienna (A)

FrauenthalService GmbHVienna (A)

FrauenthalHaustechnik Beteiligungs GmbHVienna (A)

FrauenthalHandel AG(formerÖAG AG)Vienna (A)

SHT HaustechnikAGPerchtoldsdorf (A)

OVI Holding AGLuxembourg (L)

OVI OnlineVertrieb fürInstallateur- bedarf GmbHChemnitz (D)

1a InstallateurVienna (A)

SHTTermocomtrgovina d.o.o.Umag (HR)

FrauenthalAutomotiveHolding GmbHVienna (A)

FrauenthalAutomotiveGmbHVienna (A)

FrauenthalAutomotiveToruń Sp. z o.o.Toruń (PL)

FrauenthalAutomotiveBrasil Participações LtdaSao Paulo (BRA)

FrauenthalAutomotiveVerwaltungs-gesellschaftmbHVienna (A)

FrauenthalAutomotiveBeteiligungs- verwaltungsGmbHVienna (A)

Gnotec ABGnosjö (SE)

GnotecKinnared ABKinnared (SE)

Gnotec HaboABHabo (SE)

Gnotec Čadcas.r.o.Čadca (SK)

Gnotec RefteleABReftele (SE)

Gnotec MotalaABMotala (SE)

FrauenthalAutomotiveAdministrationGmbHElterlein (D)

FrauenthalAutomotiveElterlein GmbHElterlein (D)

FrauenthalAutomotiveService GmbH Elterlein (D)

Linnemann Schnetzer GmbHElterlein (D)

0,02%

Frauenthal Automotive Finance GmbHVienna (A)

FrauenthalAutomotiveManagementGmbHElterlein (D)

FrauenthalAutomotiveHustopečes.r.o.Hustopeče (CZ)

100%

0,1%

100% 100%

100% 100%

99,98% 100%

100%

100%

99%

1%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

99,9%

Holding and administration companies

Trading companies

Productions plants

Gnotec AsiaHolding Ltd.Hongkong (CN)

Gnotec Auto- motive Parts (Kunshan) Co.Ltd.Kunshan (CN)

100%

100%

Status as of 30. 06. 2016

31OUR SITES

Frauenthal Holding AG

Rooseveltplatz 10

A-1090 Wien, Österreich

www.frauenthal.at

Frauenthal Automotive Elterlein GmbH

Scheibenberger Straße 45

D-09481 Elterlein, Deutschland

www.frauenthal-automotive.com

Frauenthal Automotive GmbH

Rooseveltplatz 10



Frauenthal Automotive Hustopeče s.r.o.Bratislavská 2

CZ-693 01 Hustopeče, Tschechische Republik


Frauenthal Automotive Toruń Sp. z o.o.ul. Na Zapleczu 25

PL-87-100 Toruń, Polen


Frauenthal Handel AG

Oberlaaer Straße 250


www.oeag.at

Frauenthal Service GmbH

Gurkgasse 7–9


www.frauenthal-service.com

Gnotec Automotive Parts Co. Ltd.

358 Xinsheng Road

Jiangsu Province

www.gnotec.com

Gnotec Čadca s.r.o.

Podzávoz 2824

SK-02201 Čadca, Slowakei

www.gnotec.com

Gnotec Habo AB

Ringvägen 21

SE-566 31 Habo, Schweden

www.gnotec.com

Gnotec Kinnared AB

Box 46 (Älvdalsvägen)

SE-314 05 Kinnared, Schweden

www.gnotec.com

Gnotec Motala AB

Box 967 (Vintergatan 1)

SE-591 29 Motala, Schweden

www.gnotec.com

Gnotec Reftele AB

Bruksgatan 7

SE-330 21 Reftele, Schweden

www.gnotec.com

SHT Haustechnik AG

Gurkgasse 7–9


www.sht-gruppe.at

Cover: Günter Dangl and Rukiye Erdogan, Frauenthal Trade

Published by: Frauenthal Holding AG, Rooseveltplatz 10, A-1090 Vienna,

Tel.: +43 (1) 505 42 06, e-mail: [email protected], www.frauenthal.at

Coordination, layout, graphic and pictures: jumptomorrow gmbh

Printed by: Grasl FairPrint

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