Annual and Sustainability Report 2019 The Weleda Group and Weleda AG
The prickly pear cactus – moisturiser from the desert We started with plant observations. In the search for a lead plant for our new moisturiser series (see page 12), we came across the prickly pear cactus – Opuntia ficus indica. It grows in a dry environment and is excellent at surviving dry periods. It has the ability to store moisture in this kind of hostile environment, thereby compensating for and harmonising the imbalance in the environment. But would the analysis of the sub stance show that the plant could live up to its promise? Yes – we were right. We found that a product made from prickly pear would have a remarkable moistur ising effect on human skin. We developed a specially adapted process for our own production, and we have applied for a patent for this process. We’re also delighted that the plants are grown in a controlled organic envi ronment and the growing conditions meet our requirements for a respectful supply chain. Contents KEY FIGURES AT A GLANCE (INSIDE COVER PAGE) SELECTED KEY FIGURES FINANCIAL KEY FIGURES: ECONOMY VALUE ADDED STATEMENT 1 BRIEF PROFILE GROUP STRUCTURE AND SHAREHOLDERS 2 EDITORIAL OF THE BOARD OF DIRECTORS 3 THE BOARD OF DIRECTORS OF WELEDA AG 4 THE EXECUTIVE BOARD OF WELEDA AG 5 THE NEW WELEDA BOOK 6 WELEDA SUSTAINABILITY PROGRAMME: SEVEN AREAS OF ACTION 8 PRODUCT DEVELOPMENT AND PRODUCTS 14 REGENERATIVE FARMING AND BIODIVERSITY 20 RESPECTFUL SUPPLY CHAIN 26 SUSTAINABLE SITES, PRODUCTION AND LOGISTICS 34 MEANINGFUL AND EFFECTIVE WORK 40 CULTURAL AND SOCIAL RELATIONSHIPS AND DEVELOPMENT 46 MANAGEMENT AND FINANCE 59 MANAGEMENT REPORT 63 2019 FINANCIAL STATEMENTS 63 WELEDA GROUP 81 WELEDA AG NOTES 96 ENVIRONMENTAL SUSTAINABILITY TABLE 99 EMPLOYEES TABLE 100 GLOBAL REPORTING INITIATIVE 10 1 CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS 102 CERTIFICATIONS 103 UEBT CERTIFICATION 105 CORPORATE GOVERNANCE 106 ADDRESSES PUBLICATION DETAILS
Selected key figures Net sales in 1,000 EUR Employees 76 % Natural and organic cosmetics + 4.1 % 429,268 24 % Pharmaceuticals EBIT in 1,000 EUR – 24.4 % 15,906 Result for the year in 1,000 EUR – 9.3 % 12,980 ± 0 % + 2.4 % + 0.7 % female male 1,746 808 2,554 Weleda is represented on all five continents and in over 50 countries. Page 51 Investments in intangible assets and property, plant and equipment in 1,000 EUR + 32.1 % 14,454 Equity ratio + 1.8 percentage points 52.9 % Organic proportion of plant-based raw materials Proportion of renewable energy (electricity) Recycling pro- portion of primary packaging (cosmetics) Proportion of waste that is reused 80 % – 0.4 % 98 % – 1.3 % Switzerland, Germany, France For production facilities of cosmetics and pharma ceutical products: 100 % All regional companies: 94 % Changed calculation: based on the weight of all packaging produced including the closure system 30 % + 1.0 % 98 % – 0.8 % Reuse through composting, repur posing, recycling, recovery, thermal use or other utili sation
Financial key figures Economy Weleda Group – key figures Net sales Net sales natural and organic cosmetics Net sales pharmaceuticals Operating result (EBIT) EBIT in % of net sales Consolidated result for the year Cash flow from operating activities Net assets 2 Investments in intangible assets and property, plant and equipment Fulltime equivalents (FTE) as at December 31st Balance sheet total Shareholders’ equity Equity ratio Weleda AG – key figures Result for the year Shareholders’ equity Distribution in % of nominal value 429,268 326,981 102,287 15,906 3.7 % 12,980 26,626 47,689 14,454 2,181 277,955 146,992 52.9 % 477,548 363,757 113,791 17,695 14,440 29,621 51,838 16,080 302,138 159,781 223 84,584 7.0 % 3 1 At balance sheet date or average rates for the year 2 Cash and cash equivalents and securities less current and noncurrent interestbearing liabilities 3 Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2020 Value added statement Origin Revenue (sales, other income and interest income) Input (cost of materials, changes in inventory, depreciation and amortisation and other inputs) Value added Distribution To employees (employee income, as well as social contributions and Pension Fund) To public authorities (taxes) To charitable organisations (donations), pursuant to paragraph 2 (3) of the articles of incorporation To lenders (interest expense) To shareholders (distribution) To the company (retained earnings) Value added 2019 in million EUR 432.2 – 249.5 182.7 164.4 2.5 2.6 0.2 0.9 1 12.1 182.7 2019 in % 90.0 1.4 1.4 0.1 0.5 6.6 100.0 All information based on average rates for the year. Comments to the value added statement: see page 50 1 Pursuant to the proposal made by the Board of Directors to the General Shareholders’ Meeting on June 5th 2020 2019 in 1,000 EUR 2019 in 1,000 CHF 1 2018 in 1,000 EUR 2018 in 1,000 CHF 1 Change in % 2019 / 2018 based on EUR values e c n a l g a t a s e r u g i f y e K 412,272 307,620 104,652 21,051 5.1 % 14,310 9,133 35,794 10,942 2,151 262,051 133,951 51.1 % 2018 in million EUR 416.3 – 241.2 175.1 152.3 5.6 2.3 0.6 0.9 13.4 175.1 476,120 355,260 120,859 24,311 16,526 10,547 40,336 12,637 295,305 150,949 – 506 84,857 7.0 % + 4.1 + 6.3 – 2.3 – 24.4 – 9.3 + 191.5 + 33.2 + 32.1 + 1.4 + 6.1 + 9.7 – 144.1 – 0.3 2018 in % Change in % 2019 / 2018 + 3.8 + 3.4 + 4.3 + 7.9 – 55.4 + 13.0 – 66.7 + 0.0 – 9.7 + 4.3 87.0 3.2 1.3 0.3 0.5 7.7 100.0
Brief profile Weleda is the world’s leading manufacturer of certified natural cosmetics and anthroposophic pharmaceuticals. The product port folio comprises more than 1,000 pharmaceuticals worldwide and a wide range of extemporaneous pharmaceutical preparations, as well as 120 natural and organic cosmetics. They are developed based on a unique understanding of people and nature. For decades, nearly 1,000 substances from nature have formed the foundation of our products, which contribute holistically to the health and well being of people. Weleda products are available in more than 50 countries. The com pany employs 2,554 people 1 worldwide to develop, produce and market its products. The Swiss stock corporation has its headquarters in Arlesheim (Switzerland) and its largest branch in Schwäbisch Gmünd (Germany). The Group furthermore includes 24 companies in 20 countries. Anthroposophy inspires the view of the human being and understand ing of nature that is at the heart of Weleda’s vision: contributing to a world in which the health and beauty of human beings and nature continually unfold. Group structure and shareholders 33.7 per cent of the capital and 76.7 per cent of the voting rights of Weleda AG are held by two principal shareholders: the General Anthroposophical Society (AAG, Dornach, Switzerland) and Klinik Arlesheim (KA, Arlesheim, Switzerland), formerly Ita Wegman Klinik AG. The remaining voting and non-voting shares are publicly floated. Under the company’s articles of incorporation the registered shares of Weleda AG may be transferred only with the written permission of the Board of Directors of Weleda AG. Acquirers must be members of the General Anthroposophical Society, Dornach. In order to be valid, the transfers have to be registered in the company’s share register. Capital structure of Weleda AG 2 Nominal registered voting shares CHF 1,000 Nominal registered voting shares CHF 112.50 Nominal registered voting shares CHF 125 Nominal registered non-voting shares CHF 500 Total nominal capital Number of shares Nominal capital in CHF 3,478 6,880 3,984 19,000 3,478,000 774,000 498,000 9,500,000 14,250,000 1 2 Number of persons including trainees, apprentices, marginally employed staff, volunteers The share capital is fully paid. As at December 31st 2019, there is neither authorised nor contingent share capital. Every registered voting share entitles the bearer to a single vote in the General Shareholders’ Meeting. 1
E D I T O R I A L O F T H E B O A R D O F D I R E C T O R S Dear Readers, Although we faced some challenges, such as the ban on the previous production method in France, we achieved a lot in 2019. With courage and dedication, our employees have accepted these challenges and sought solutions. This is not only about the application of skills and abilities, but also about the way in which they are used. From which stance do I make my contribution? Am I aware of the importance of my contribution to the business practice and the brand of Weleda? These are questions that have to do with the forma tion of an appropriate corporate culture. The figures for our business activities can be found on the inside cover page and in the financial statements from page 63 onwards. We do not regard the figures as a target, but as the result of our work. We work for our customers and with the help of nature for health in the world. Because we see a purpose in our work, we can do our work with love. This, among other things, is what this Annual and Sustainability Report is all about: in each chapter we will tell a story about what love and devotion to working at Weleda look like and what is important to us. In accordance with our purpose: inspired by anthropo sophy, we follow our path. So much for the concept behind this report. I am writing these lines at the end of March 2020. We are all affected by the spread of the COVID-19 virus in Europe and in the world. The last few weeks have changed our lives fundamentally. Social life has been considerably restricted everywhere in order to slow down the development of the pandemic. Of course, Weleda is also affected by this. The good news for Weleda: we were able to continue manufacturing and delivering our products up to the time of writing this report. How things are when the report reaches you, we cannot assess today. We very much hope that the situation will have improved by then. Our thoughts are with the victims of this pandemic and the many people whose livelihoods are threatened by this virus and the closure of public life. My sincere thanks go to all employees of Weleda for their prudent handling of the exceptional situation and to you for your interest and trust in Weleda. Yours, Paul Mackay Chairman of the Board of Directors of Weleda AG 2
1 2 3 4 5 6 The Board of Directors of Weleda AG 1 Paul Mackay 2 Dr Andreas Jäschke 3 Monique Bourquin Chairman of the Board of Directors Head of Organisational Culture at Member of the Board of Directors “At Weleda, we incorporate the sub stances gifted to us by nature into our products and working methods, thus creating a culture of love that can work wonders both in and on people and between them.” Klinik Arlesheim “There is as much healing power in every product as love has been worked into it. You only see good with your heart – and you create the good from genuine devotion. We want to work at Weleda from this ideal.” “I experience how the Weleda brand has much further reach, greater wholeness and energy in natural cos metics than comes across to our current consumers. This indicates great potential.” 4 Ueli Hurter 5 Elfi Seiler 6 Prof. Dr Harald Matthes CoLeader of the Section for Agriculture at the Goetheanum and Demeter farmer “Good products are the result of Pharmacist by training and coowner of Senior doctor at Havelhöhe Community the St Peter Pharmacy in Zurich Hospital in Berlin “A courageous commitment to “Only the love of spiritual scientific the harmony of head, heart and hand – anthroposophic medicines, character cognitive work and observation in every employee, in every team, ised by goodwill and love, will of nature will be able to inspire us in throughout Weleda.” lead Weleda safely into the future.” the development of substances at Weleda and show us the future.” 3
1 2 3 4 The Executive Board of Weleda AG 1 Nataliya Yarmolenko Chief Commercial Officer “Love of action for me means to recognise the meaning in the situation and connect with it. From this grows courage and strength to do what is necessary. This stance is expressed in our purpose.” 2 Dr Aldo Ammendola Chief Research and Develop ment Officer “Our staff research and develop our products with pronounced care and attention that can be directly experienced by patients and consumers.” 3 Michael Brenner Chief Financial Officer “I experience dedication to entrepreneurial activ ity in the company where the creative will can be active. Collegial Leadership and collaboration create the necessary framework for this.” 4 Alois Mayer Chief Operations Officer “Caring for people and nature is the basis of our work at Weleda. You can’t do it without love.” 4
T H E N E W W E L E D A B O O K The knowledge of the Weleda gardeners Weleda’s international team of gardeners has compiled valuable knowledge in a book about the biodynamic cultivation of medicinal plants. They provide personal insights into their work and into the complex interplay between the human being and nature. For the first time, readers can participate in the wealth of experience of the Weleda gardeners: how they promote soil health, produce their own seeds and work with the rhythms of nature. In a loving way the gardeners present their work and understanding as well as the art of keeping the garden organ ism in balance. In very personal interviews they show what it means to be a gardener and to work and live with nature: “In spring, when everything begins to sprout, this is life at its purest. It’s an incredible feeling to stand in the middle of a field of St John’s wort in summer and feel the power of the sun. And in autumn, when everything ripens, you feel like you’ve matured a bit yourself.” This is how Michael Straub puts it. He is an agri cultural engineer and has managed the Weleda medicinal herb garden in Germany for over 20 years. The eight Weleda medicinal plant gardens are spread all over the world: in Europe, South America and New Zealand our gardeners cultivate precious plants for natural cosmetics and medicines. The gardens were created to provide the compa ny with plant-derived raw materials that meet Weleda’s high quality criteria. Because only healthy and strong plants can provide people with vital strength and curative powers. All gar dens have one thing in common: the medicinal plants are biodynamically farmed. The book is enjoyable to read, a guidebook and photo book in one. More than 130 at mospheric photos show how human beings can work in harmony with creation: Das Wissen der Weleda Gärtner, Verlag Ulmer 2019, 250 pages. 5
W E L E D A S U S T A I N A B I L I T Y P R O G R A M M E Weleda sustainability programme Our sustainability programme follows a global approach. It is geared towards the entire Weleda Group and is valid for the years 2018 to 2022. In all seven areas of action – from which the structure of the present report is also derived – we continued to pursue our goals consistently in 2019. This year, 2020, we will add another focus: climate protection, including mobility and logistics. Attractive and sustainable packaging Weleda developed a new long-term packaging vision in 2019: “Zero Waste. Zero Harm. 100 % Consumer Relevance”. Weleda packaging should not cause any problems in the world but at the same time it should be attractive and easy to use. We will align our medium and longterm packaging development with this vision. Weleda still has a long way to go before this vision becomes rea lity. On the positive side, a start has already been made: by 2022, the proportion of recycled material in packaging will more than double from 29 per cent (in 2018) to at least 65 per cent. We will achieve this goal primarily by using more green glass and plastics with a high recycling content. For example, in 2020 the bottles for Calendula body lotion and Calendula baby oil will be converted to 100 per cent recycled plastic. Together with other industrial and trading companies, Weleda is involved in the Recyclate Forum to strengthen the recycling econ omy and increase the market share of recycled packaging. It is our wish that one day our vision “Zero Waste. Zero Harm. 100 % Con sumer Relevance” is the industry standard. You can read more about our vision on page 13 in an interview with Dr Bernhard Irrgang, responsible for research and development in the natural and organ ic cosmetics segment. Healthy soils We support soil resilience, biodiversity and local to regional eco systems worldwide through our eight biodynamically managed Weleda medicinal herb gardens and around 50 raw materials pro jects. In the Weleda medicinal herb gardens, our gardeners main tain a resilient ecosystem that is able to keep itself in balance on its own and becomes more speciesrich. So despite the drought in the summer of 2019, our harvest results were good. Weleda pro motes biodynamic and organic cultivation around the globe. To gether with our partners, we ensure that soil quality is improved. Healthy soils are the foundation of all Weleda products and the key to intact ecosystems, healthy people, a healthy climate and thus our health in general. Weleda becomes B-Corp By 2022, the entire Weleda Group is to become a certified B-Cor poration (BCorp for short). BCorp is an international sustainability certification for companies. Certified companies provide trans parent proof that they meet very high social and environmental standards in order to reconcile financial and ethical value creation. There are around 3,000 certified companies worldwide. In autumn 2019, we successfully completed the first project phase of the preliminary review. More information about BCorp can be found at www.bcorporation.net New: climate protection We also want to become even better at climate protection, includ ing logistics and mobility. We already know that, for example, our gardens and our cultivation partners have many positive effects on the climate – but we will now look at this area of action more systematically. In 2020, a climate balance will be prepared for the entire Weleda Group, covering all dimensions: direct own emissions (Scope 1), energy received from external sources (Scope 2) and other indirect emissions (Scope 3), for example from global agricul tural supply chains and logistics. On this basis, we are developing a tailormade climate protection programme that we will present in the 2020 Annual and Sustainability Report. What does sustainability really mean? If we continue to optimise ourselves and become more and more efficient, we will certainly become “less bad” as a result. But is it enough to reduce emissions or increase the recycling rate of our packaging? We think not. It is essential, but in a finite world with limited resources and billions of people who have a right to an intact nature and a dignified life, we need a paradigm shift as defined by the Cradle to Cradle movement: from “less bad” to “more good”. The crucial question is: is a world with Weleda worse or bet ter than a world without Weleda? We know that there are many examples where a world with Weleda is better. But there are also other examples. We will do our utmost to ensure that the overall balance becomes less and less negative and instead more and more positive. 6
W E L E D A S U S T A I N A B I L I T Y P R O G R A M M E Goodprint In the following seven chapters, we present our “good prints”. These are employees and people connected with Weleda who make the world a better place through their professional actions: in distinction to the so called ecological footprint, we have coined the term “goodprint” for their commitment to a good cause. 7
#thinkahead Jakob Wössner, Organisational Develop ment and Digitisation Manager, is committed to communicating Weleda’s knowledge also digitally.
01 Product development and products The foundation of our customers’ trust is our special commitment to quality. Alongside this high product quality, innovative packaging is also in demand today. With our ambitious goals for more sustainable pack aging, we want to make Weleda natural and organic cosmetics even more customeroriented. In addition to new developments, we see it as our task to continue to invest in research and development, such as micro biome research.
Goodprint #thinkahead The Digital Academy is intended for a specialist audience such as doctors and pharmacists. Digital Academy: the knowledge of Weleda Developing professional skills, personal development: for the first time, Weleda AG is presenting a digital learning platform. From summer 2020, it will be available to pharmacists, PTAs and nonmedical practitioners. Society’s interest in complementary medicine is growing steadily. Weleda has a wealth of knowledge in this field. One year before its 100th birthday it is making it accessible with a new tripartite training programme inspired by the image of the human being of anthroposo phy. The first topic of the Digital Academy is digestion and stress. Pharmacists, PTAs and nonmedical practitioners will first receive basic knowledge about anthroposophic medicine and pharmacy and cor responding products from Weleda. Whoever wants to go further can additionally book professional content for therapeutic use. In a third step, participants receive suggestions for personal development. “We are thus offering unusual added value,” says Jakob Wössner, Organi sational Development and Digitisation Manager. “In addition to a clas sic further training, the individual learns how to reduce stress in everyday life, for example.” The innovative concept itself is also intend ed to contribute to this: content is conveyed in a playful manner, the time for learning can be freely chosen. In the future, personal meet ings with speakers, for example, could supplement the virtual offer. “There is an unbelievable amount of potential in this,” says Jakob Wössner, who helped develop the platform. “The extent to which good things can be achieved is unlimited. Rita Wirtz and Jakob Wössner are driving the project forward. 10
01 Product development and products Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Milestones 2019 Trend Assessment 100% Natrue certification for all cosmetic products High vertical integration (fragrance development, quality control and tincture production) New products: Skin Food Body Butter, Skin Food Light and Skin Food Lip Balm Naturally Clear Clarifying Wash Gel, Mattifying Fluid, S.O.S. Spot Treatment, Spot Cover Cream Summer Garden Shower Limited Edition Forest Harmony Limited Edition Strengthening of vertical integration, for example in tincture production: Significantly increased volumes of Viola tricolor (pansy) extract (for Skin Food line extension 2019) Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Attractive and sustainable packaging Natural and organic cosmetics primary packaging (based on the weight of all packaging produced, including closure systems): At least 65 % recycled materials or bioplastics Share of recycled materials or bioplastics 30 % At least 75 % recyclability or Recyclability percentage: approx. 85 % compostability Activities in 2019: slight increase in the proportion of recycled material. Preparation of new packaging solutions from 2020 Share of sustainable paper or cardboard: 100 % (FSCcertified and / or recycled material) Recyclability percentage: 100 % Activities in 2019: test of folding boxes with a higher recycled content (> 85 %), which will be on the market from 2020 Percentage of sustainable paper or cardboard: 100 % (FSCcertified and / or recycled material) Recyclability percentage: 100 % Activities in 2019: Further optimisation of transport packaging (e. g. lighter, more efficient) to be used from 2020 Natural cosmetics packaging (folding boxes, package inserts): 100 % sustainable paper or cardboard (e. g. recycled material, FSC label) 100 % recyclability or compostability Natural cosmetics transport packaging: 100 % sustainable paper or cardboard (e. g recycled material, FSC label) 100 % recyclability or compostability Increase in the proportion of cardboard boxes and ecologically sound filling and packaging material (reduced use of shrink film, bundle film, etc.) Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 11
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 PHARMACEUTICAL STRATEGY: IT’S COMPLEX Successes, challenges and in- tensive work: in 2019, Weleda made progress with its strate- gy for a sustainable pharmaceu- tical business. But it also be- came clear that there is still a long way to go before we reach our goal. To reduce complexity, transpar ency is needed. This makes it pos sible to weigh up the financial implications of decisions much more comprehensively and to act accordingly. For example, in the price increase that was imple mented, which led to a deliberate loss of reimbursement for some medicines in Switzerland. Weleda is thus taking a necessary step towards an economically viable product range without limiting the availability of important an throposophic medicines. The first successes of the pharmaceutical strategy in Germany and Swit zerland are accompanied by the challenging situation in France: the cancellation of the eligibili ty of homoeopathic medicines for reimbursement in two stages by January 2021 directly affects Weleda. A V I E W F R O M O U T S I D E I very much like to prescribe Weleda products. I am convinced by the high quality from the raw material to the final product and my patients benefit from it during their recovery. Dr Fabricio Dias, Brazil Anthroposophic doctor and general practitioner 12 Intense moisture with prickly pear cactus Dry skin? Nature knows what to do: four new Weleda products with prickly pear cactus extract pro vide natural, long-lasting moisture. The unique extract from Mexican organic prickly pear cactus, for which a European patent is pending, has a high content of waterbinding substances and thus sup ports the skin’s own ability to store mois ture. We use this property for our new moisturising care series: 24h moisturising cream The light texture is quickly absorbed and strengthens the natural skin barrier. 24h moisturising fluid The matting fluid with babassu oil provides longlasting moisture. Refreshing moisturising eye gel The unscented gel is quickly absorbed, cools and revitalises the sensitive skin around the eyes. Refreshing moisturising spray The spray revitalises tired skin and refines the pores. All four new products are Natruecertified. They also bear the new UEBT seal for raw Four times intensive moisture: the new moisturising care series with prickly pear cactus material procurement with respect for people and nature. The power of a drop of oil The successful pomegranate care series will grow in 2020: Weleda has composed the Pomegranate Firming Face Oil from pomegranate seed oil, argan oil, apricot seed oil and six other precious vegetable oils. The intensively nourishing oil is quickly ab sorbed and reduces wrinkles. Just a few drops of the oil are enough – either in com bination with a day or night cream or pure as intensive care. Microbiome: protective shield of the skin Our skin is beautiful when it is healthy. And in order to stay healthy, the microorganisms on our skin have to thrive. Because they form our protective shield. the ubiquitous harmful germs do not get the upper hand and cannot harm us. They thus form a protective layer and con tribute to the barrier function of healthy skin. Microbiomefriendly products promote the protective function of the skin. “We start from the premise that our natural cos metics products are microbiomefriendly,” says Dr Gerald Künst le, who, together with his team, is researching how Weleda natu ral cosmetics affect the microbiome. “We want to be able to prove this for our exist ing portfolio and in the future we want to incorporate it more strongly into the devel opment of new products.” As humans, we are never alone. Countless microorganisms live in our body and on our skin. This is completely natural, because microorganisms originated long before hu mans in the history of evolution. To sur vive in this environment, we had to learn to live in symbiosis with them: we offer them a habitat and they help us. On the skin, the good, i. e. useful, represen tatives of the so-called microbiota – popu larly also known as microbiome – ensure that
01 Product development and products A vision for the best possible packaging The consumer goods industry is currently facing a major challenge: less packaging that is more environmentally friendly. In an interview, Dr Bernhard Irrgang, responsible for research and development of natural and organic cosmetics, explains why really good solutions take time. Weleda has therefore formulated a packaging vision for the years until 2030 and beyond. Dr Bernhard Irrgang heads the research and development depart ment for natural and organic cos- metics and thus also the packaging development team. ever, different definitions of recyclability apply in the countries in which we operate and the quality of recycling varies greatly. What does the most ecological packaging look like? It should consist of only one type of mate rial to be, then it is easier to recycle. This is the case with our PET bottles, and glass is also a pure material. It is important to manu facture the packaging in the most environmentally friendly way possible as well. What goals does Weleda set itself for the next few years? By 2022, 65 per cent of our primary packaging will come from recycled sources. To this end, we will increase the proportion of recycled PET and, in the case of glass, switch completely to glass with a very high recycling content. By 2030, we aim to achieve closed cycles for packaging, either through takeback systems or orderly recycling cycles. Secondly, we must ensure the quality of the recycled material. Thirdly, the packaging must of course meet the expectations of our customers. How does Weleda achieve these goals? There are no easy solutions. I understand the desire for faster progress, but we must proceed carefully. We are currently testing whether it is possible to offer certain products in zerowaste shops without any packaging and without any loss of product quality. Also solid products, such as hair soaps, require little packaging. Or aluminium: there is hardly any better protection for our products, but the extraction of aluminium is very energyin tensive. We will therefore have to find other solutions for this as well. 13 What requirements must product packaging fulfil? DR BERNHARD IRRGANG: It must protect the product from oxygen, light and impurities. This is a central aspect because Weleda uses par ticularly sensitive and valuable raw materials. Then, of course, the packaging must be easy to handle and be as ecological as possible. The biggest challenge at present is to strike a balance between adequate product protection and ecology. By 2022, 65 per cent of our primary packag ing will come from recycled sources. How ecological is our packaging? Some of our packaging materials are already highly recyclable, and we are also increasingly using recycled material. Unfortunately, how Dr Bernhard Irrgang Head of Research and Development for Natural and Organic Cosmetics
02 Regenerative farming and biodiversity The quality of our raw materials is particularly important to us. Our goal for organic plantbased raw materials is to increase the biodynamic proportion to 30 per cent by 2022. We are confident that this type of farming is the most sustainable. This is the cultivation method that gives back more to our envir onment than it takes, thanks to closed cycles with natural humus formation.
#responsibility Weleda is committed to the reforestation of cleared rainforests in Borneo and to sustainable sources of income for the local population. Annette Piperidis, who initiated the project and is responsible for sustainable procurement at Weleda, makes her very personal contribution to reforestation.
Goodprint #responsibility 66,000 trees for a new rainforest Barren land to the horizon: an abandoned rice cultiva tion project has destroyed one third of the peat bog rain forests in the Mawas Conservation Area in central Borneo. Since 2019, Weleda AG has been committed to refor esting them and protecting the biodiversity in the region. Where until 25 years ago dense rainforest grew on damp peat bog soil, 66,000 plants are now stretching their delicate green shoots towards the sun again, enough for 55 hectares. “That sounds like a lot, but it isn’t,” says Annette Piperidis, Manager for Sustainable Raw Materials Procurement at Weleda AG in Schwä- bisch Gmünd. “Our dearest wish would be to restore the entire area of 100,000 hectares. At least a start has been made. To this end, Weleda AG cooperates with the nonprofit organisation Bor neo Orangutan Survival (BOS) Germany, which has been working for the endangered orangutans in Borneo and the preservation of their natural habitat since 1991. “BOS is an ideal partner for pur- suing our own sustainability goals,” says Annette Piperidis, who sees her work as a calling. “In doing so, we not only want to be donors, but also to improve the living conditions on site.” The pro ject, which is endowed with 100,000 euros, gives 100 village families work in planting and trains locals to become fire fighters, as the cleared peat bog soil is easily ignited. It also provides knowledge about the value of the forest – and of patience: only in many years’ time will the trees be big enough to provide a home for orangutans again. 16 Helping the villagers, reforesting the rainforest and thus helping the orangutans, these are the cornerstones of the project.
02 Regenerative farming and biodiversity Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Milestones 2019 Trend Assessment Minimum average organic propor tion of 80 %, based on certifiable raw materials Current status: 80 % Organic requirement implemented for new raw materials UEBT standard: new partnerships comply with organic require ments and fulfil social and ecological demands. Commitment to a more sustainable palm industry Participation in the Forum for Sustainable Palm Oil (FONAP), cooperation with BOS Germany (Borneo Orangutan Survival) Eight own medicinal herb gardens worldwide (Germany, largest bio dynamic garden in Europe; Switzerland; France; England; Netherlands; Brazil; Argentina; New Zealand) Medicinal plant garden in Germany: In 2019, it was possible to harvest all crops despite the severe drought. New in cultivation: Hydrastis canadensis (Canadian turmeric) Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Initiative for biodynamic agriculture Exploratory talks for alliances with external partners Priorities: Expansion of biodynamically farmed areas (together with Demeter) Enhanced communication on the advantages of regenerative agriculture, new projects and alliances for the conversion to biodynamic raw materials, as in the case of lavender cultiva tion in Moldova Increase in the proportion of raw materials from biodynamic agriculture to 30 % Conversion from organic to Demeter quality for the following raw materials: Cane and beet sugar, olive oil, sunflower oil, jojoba oil Promotion of biodiversity in projects and with stakeholders Participation in the Union for Ethical Biotrade (UEBT) (chair, representation on several committees) Since mid2018, Weleda has been certified according to the UEBT Ethical Sourcing System. The supply chain management system is thus greatly intensified. Since the end of 2018, 34 supply chains in 27 countries have been audited according to the standard. The UEBT logo is displayed on our new cos metics packaging. Increased communication about biodiversity / UEBT and Demeter, including in trade Seed strategy and seed initiative Seed strategy to preserve seed diversity and promote alternative seed initiatives Support for organisations such as Initiative Biosaatgut Sonnenblume (IBS), Hortus officinarum and Zukunftsstiftung Landwirtschaft which, like Weleda, are committed to free dom from GMOs, the promotion of hybrid-free seeds and trans parency in organic supply chains Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 17
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Building bee hotels for biodiversity Preserving biodiversity is a central concern for Weleda. Wild bees play an important role as pollinators of native plants. In order to protect this endangered species, Weleda Australia provides construction kits for bee hotels for schools. In this way children are taught the importance of biodiversity in a playful way. The concept follows a playful approach. Not with frontal teaching but with practi cal outdoor work the pupils learn about the importance of wild bees and their func tion for the local ecosystem. Weleda pro The bee hotel enriches our school garden. The pupils have also planted special plants to attract bees near to the hotel. It was amazing how much they learned. Alison Bath Headmistress of the Tuntable Creek Public School 18 vides interested schools with a kit for a bee hotel, including instructions and in formation material, free of charge. The pupils then assemble the bee hotel under the supervision of a teacher and observe the bees throughout the summer. In this way, the children not only learn about the habits and preferences of the wild bee, but also recognise the importance of plant pollination and its effects on biodiversity. The concept is well received. “We have worked with over 650 schools across the country, providing them with a free bee hotel and curriculum,” said David Johnston, Managing Director of Weleda Australia. He estimates that more than 120,000 chil dren have been taught the importance of biodiversity. The pupils playfully explore the nature of the wild bee.
02 Regenerative farming and biodiversity A V I E W F R O M O U T S I D E Sowing a future for high biodiversity A thick oak tree was also once a seed: since 2019, Weleda has been engaged for the first time in its own strategy for organic seeds which makes farmers independent of large corporations, maintains biodiversity and secures natural materials. Three corporations currently own 60 per cent of the world’s seeds. These are mostly hybrid or even genetically modified breeds that cannot be propagated. At the same time, the diversity of useful plant species is declining significantly. Today, 70 per cent of the vegetable varieties that were once grown in Germany have already dis appeared. “This topic is becoming increas ingly relevant to society,” says Annette Engel, Head of Raw Materials Purchasing at Weleda AG. “With our seed strategy, which is initially set to run for four years, we want to help ensure that organic seed will continue to be available to farmers in the future as well. To this end, the com pany supports, for example, the “Save our Seeds” initiative and the seed funds of the “Zukunftsstiftung Landwirtschaft” foun dation, as well as the “Kernel Power? Yes, please!” initiative of the organic food re tailer Dennree. In 2012, Weleda was already one of the founding members of the “Initiative Bio Saatgut Sonnenblumen” (IBS), an initiative that aims to rebreed hybrid seeds into reproductive organic seeds. It takes persis tence: the variety will be available in a few years at the earliest. I admire the holistic approach taken by Weleda, which includes every thing: the preservation of the soils, the promotion of the farming projects through to the search for the best pack aging solutions. Alexx Stuart, Australia Author and blogger www.lowtoxlife.com Counting insects and creating jobs in Albania Promoting biodiversity is one of Weleda’s sustainability goals. This is why we intensified our partnership with the company AgroMap in 2019. In eastern Albania, in the middle of the ShebenikJablanica nature re serve, they carefully cultivate vari ous plants such as calendula accord ing to the guidelines of organic farming or obtain them from con trolled wild collection. reason why Weleda is convinced of the partnership. Bees are responsible for pre serving biodiversity, which is why colonies have been established that are developing well so far. Biodiversity also means ob serving the number of insects in the area. Therefore AgroMap started socalled in sect monitoring. The aim is to take a criti cal look at the effects of cultivation on bio diversity. Will the number of insects re main the same or even increase as a result of agriculture? These are important ques tions that move us at Weleda. The varied landscape and the biodiversity at an altitude of over 1,000 metres are the main attractions of the production area. Otherwise, the sparsely populated region, whose population can hardly live on agri culture, is structurally weak. This makes it all the more important to provide the villagers with a secure and regular income through work in the fields. AgroMap was founded by two former students of the Uni versity of Hohenheim. It is important to both of them not to engage in highly pro ductive plant cultivation, but to preserve and promote biodiversity. This is another Regard for biodiversity: the cultivation project in Albania is no threat to bird’s nests. 19
#respect Bas Schneiders, Head of International Strategic Purchasing at Weleda, thanks harvest workers in Moldova. Weleda supports lavender cultivation locally and thus offers the local population a secure income.
03 Respectful supply chain Weleda products are based on thousands of substances from nature. We source many natural raw materials and valuable medicinal plants from suppliers around the globe. We cooperate with more than 50 cultivation partners worldwide. The ethical procurement of raw materials is important to us – for people and nature. Since 2018, we have been the first European brand to be certified by the Union for Ethical BioTrade.
How villagers become experts with lavender oil Weleda obtains fragrant lavender oil not only from the South of France, but also from Eastern European Moldova. The successful cooperation with villagers will now be converted to biodynamic agriculture by the end of 2021. “Without the lavender our villages would be completely de serted,” says Victor Cracea, flashing his many steel teeth when he smiles. The 78yearold lives in the small upper village, in Mincenii de Sus. The mobile phone network is almost without gaps, but many inhabitants fetch their water from the village well, as in the past. Some 90 kilometres north of the Moldovan capital Chisinau, those who stayed have been making a living since 2003 because Weleda has concluded longterm leases with its local partner, the company Resendjer. On a total of 220 hectares, villag ers cultivate lavender and extract the plant’s valuable oil. Sea sonal helpers also earn well during the harvest season. Since 2019, their prospects have again improved significantly: a threeyear project with the German Development Company, endowed with 400,000 euros, trains local people to cultivate the fields ac- cording to biodynamic criteria and to cultivate new plant species. Weleda and Resendjer are investing about half of this sum. For the first time, a tractor and a compost turner were also purchased. Hedges are planted to increase local biodiversity. “In this way we are taking a big step towards regenerative agriculture and at the same time can inspire new social momentum,” says Bas Schneiders, Head of International Strategic Purchasing, happily. “In the future, we hope to have a reach beyond the region.” Goodprint #respect The lavender is still harvested by hand in Moldova, with workers bringing the collected lavender flowers to the distillery in small tractors. Bees also contribute to biodiversity. 22
03 Respectful supply chain Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Cultivation projects (approx. 50 worldwide) Milestones 2019 Trend Assessment Support of social and ecological initiatives and projects: Moldova – lavender cultivation: conversion to biodynamic agriculture, with support from the German Development Company (see page 22) Albania – cultivation of calendula, viola and sunflower: financing of beehives and insect monitoring (see page 19) Honduras – cultivation of Nux vomica and Ipecacuanha: support for a botanical garden Romania – arnica wild collection: renovation of a village school Germany, Bulgaria and Czech Republic – calendula and lavender cultivation: advice on biodynamic cultivation Mexico – sesame cultivation: medical support (financing of antiserum against scorpion bites) Peru – ratanhia wild collection: testing of new areas for controlled biological wild collection UEBT management system for the entire supply chains of natural raw materials in the natural and organic cosmetics area. See area of action 02: Regenerative farming and biodiversity Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Transparency regarding true costs Transparency regarding the true costs for all essential plantbased raw materials (true cost accounting) Preparation (for example app programming) of the next stage with 15 additional raw materials, which will be evaluated in 2020 Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 23
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Our active involvement in the supply chain As the first European brand, we have been allowed to use the UEBT seal of approval since 2018. UEBT stands for Union for Ethical Biotrade and is a nonprofit association that promotes the respectful procurement of natural ingredients. The very strict UEBT standard promotes sustainable local development and the protec tion and careful use of biodiversity. UEBT certification is based on the testing of our pro cesses for all natural raw materials used in our natural and organic cosmetics products. We thus guarantee that biodiversity is optimally preserved and sustainably used in the cultiva tion of the plant, the harvest and further processing. We are also committed to treating all partners in the supply chain fairly, respect ing human and labour rights and promoting community development. Our current UEBT certification is valid until June 2021 and will then be extended by a new audit. In the meantime, we train all the 24 OUR GOALS FOR 2020 Audits of all remaining prioritised supply chains Follow-up of supplier actions and completion of verification audits The corrective measures of last year’s audit are main- ly adjustments in our pro- cess descriptions and inter- nal training. These meas- ures will be implemented in 2020. Further internal training courses on communication departments involved internally, for example research and development and marketing. In 2019, external UEBT audits of our sup- pliers were also required. We successfully com pleted most of the planned audits. However, we had to postpone some audits until 2020. The main reason for this is the great organisa tional effort (availability of auditors, suppliers and operators on site, coordination, language, different structures of the supply chains and all this in connection with the complex UEBT control process).
03 Respectful supply chain How an audit is carried out Olive oil: an important ingredient for our arnica massage oil. We obtain a part of it from a cooperative in the Andalusian mountains in Spain. Olive trees are organically grown on more than 8,000 hectares. In 2019, we con ducted an audit to check whether the co op erative meets the criteria for UEBT cer ti fication. The auditor Annette Pipe ridis checked, among other things, whether there is social security for employees, whether biodiversity is protected locally and whether hygiene requirements are met. Especially pleasing: the cooperative passed the audit with very good results. “The head of the cooperative is exemplary in his commitment to biodiversity. The prickly pear is endangered by a plague of lice on site. Juan Antonio Caballero is now looking for insects that eat the lice. Organic olive oil is produced on more than 8,000 hectares in Andalusia, Spain. Melodious Christmas donation Making music promotes the concen tration and development of children. For this reason we have given the pupils of the Sekem school in Egypt new musical instruments with our Christmas donation. ment of each child. Weleda and Sekem have already had a close partnership for many years which goes far beyond the jojoba oil that Weleda obtains from Sekem in biodynamic quality. In this way we want to support the chil dren in gaining new learning experiences. The Sekem school was founded in 1989 northeast of Cairo. It is open to children of all religions and encourages them to live in harmony and respect each other’s religious practices. Today the Sekem school comprises a primary, a preparatory and a secondary school for 300 pupils. The children come to the Sekem school from rural, village and urban areas: from underprivileged and privileged families – Egyptians and foreigners alike. The Sekem school is based on the Egyptian state curriculum. By combining traditional educa tional methods with innovative learning experiences, it is possible to promote the social, cultural and educational develop When making music, children learn much more than just notes: it improves their commu nication skills and concentration. This way, the existence of the prickly pear can be secured,” explains Piperidis. Together with the farmers she defined further measures after the audit to meet all requirements. Implementation is then regularly monitored by Weleda. A V I E W F R O M O U T S I D E Recognising nature as a source of benefit for humankind is what distin guishes Weleda. I also appreciate the conscious use of resources and the inclusion of all environ mental parameters. Philippe Kniebily, France Deputy Mayor of Saint Louis and Director of Petite Camargue Alsacienne 25
04 Sustainable sites, production and logistics For Weleda, environmental protection is one of the central corporate tasks. With the help of our environmental management we control and improve the consumption of resources and the environmental impact caused by the company. How well we succeeded in doing this in 2019 can also be seen in the consolidated environmental data on page 96.
#future To give penguins a future, Weleda in Great Britain donates ten pounds sterling to the Global Penguin Society for every ten kilograms of recycled plastic.
Goodprint #future Pablo García Borboroglu, founder and president of the Global Penguin Society, has been researching and protect ing penguins for over 30 years. Pictured below (from left to right): Annette Negus, Ellen Tobin, Charlotte Coleman, Beverley Hendrick and Jayn Sterland of Weleda UK with the TerraCycle container into which customers can drop their empty packaging. How Skin Food also does penguins good In Great Britain, Weleda has had soft plastic packaging processed by TerraCycle since 2019. In addition, for every ten kilograms, ten pounds sterling are donated to the Global Penguin Society to save endangered penguin species. It’s not always easy to do the right thing. This includes, at a time when the disadvantages of plastic packaging are rightly becoming apparent, switching to it nevertheless, also for ecological reasons. This sounds contradictory at first. Weleda’s Skin Food skin care has been available in plastic tubes since the end of 2018 instead of aluminium tubes. The reason: extracting new aluminium is very pollut ing and energy-intensive. Recycled aluminium, though, is too brittle. On the other hand, there are still no suitable bioplastics for all in gredients. Although Weleda plastic packaging can also be recycled in principle, the process is more complicated if it is made of poly propylene and ethylene at the same time – such as the soft tubes for Weleda shower or sunscreen lotion products. Because there is no dual recycling system in Britain as there is in Germany, Weleda decid ed to cooperate in Britain with TerraCycle, which is regarded as a specialist in this field worldwide. Customers can collect their tubes and send them to TerraCycle for free. Or they drop off empty pack aging at Weleda in Ilkeston and at recycling centres which send them to TerraCycle. “It is important to us that all these tubes are recycled in the country,” says Jayn Sterland, Managing Director of Weleda UK. The costly TerraCycle process is also used by other manufacturers, but “only Weleda is investing additionally in a sustainable project and is constantly striving to develop better packaging”. 28
04 Sustainable sites, production and logistics Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Waste recycling rate ≥ 98 % Milestones 2019 Rate is 98 % Trend Assessment 100 % own production with electricity from renewable sources in CH, D and F In Switzerland, we have improved the ecological quality of electricity. 10 % of the green electricity used is newly procured in accord ance with the Swiss “naturemade Star” standard, obtained from new regional renewable energies such as water and sun. Environmental management system: ISO 14001 and EMAS in CH and D Monitoring audits successfully completed in D / CH Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Improvement of the environmental footprint 100 % electricity from renewable sources in all associated companies as well as contract manufacturers and packaging manufacturers Renewable energy share of at least 80 % for our own buildings and production facilities 100 % emissions transparency for Scope 1, 2 and 3 and reduction programme Reduction of energy intensity by 2.5 % per year Associated companies: 88 % Contract and packaging manufacturers: not fully known Approximately 50 % Various countries are planning to increase quality. Measurement of CO2 emissions: for Scope 1 and Scope 2 in the ecobalance analysis (annual) for Scope 3 (in pilot project) Balancing of the global carbon footprint in 2020 Not achieved: +2.1 % in CH, D, F, but overall on target Reduction of potable water intensity by 2.5 % per year Achieved: – 12.5 % in CH, D, F Reduction of waste intensity by 2.5 % per year Achieved: – 2.8 % in CH, D, F Creation of coordination capacity in D / CH to reduce the volume of waste in 2019 Increase in waste recycling rate by 2.5 % annually Achieved: +5.4 % Sustainable and futureoriented logistics and mobility concept Bicycle repair stations at both locations, charging stations for electric cars in Arlesheim right next to the main entrance, own website for annual worldwide bicycle promotion programme Development of a mobility concept for the Arlesheim site Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 29
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 News on the construction of the logistics centre It is one of Weleda’s largest projects: the new construction of the logistics centre. The building concept is currently being revised with specialist planners. In the meantime, the city of Schwäbisch Gmünd has procured all the necessary plots so that nothing any longer stands in the way of Weleda purchasing the land. The new building is now to be realised in an industrial area in the east of Schwäb isch Gmünd. It will be located on a plateau and will be designed in such a way that the employees who work there will be able to look directly at the three Kaiserberge mountains of Hohenstaufen, Rechberg and Stuifen while packaging goods for dis patch. The wishes and suggestions of the employees are being included in the plan ning. In the runup to the event, they had the opportunity to draw designs for meet ing rooms, for example. In the long term, a Weleda Campus is to be built here. We see the new building as a place that can make Weleda values visible in a variety of ways. A special industrial location with a view of the Schwäbische Alb. The sketch shows the current planning status of the new logistics building. 30
04 Sustainable sites, production and logistics Development of environmental indicators Our goal is to reduce the energy, water and waste intensity with which we manufacture our products by 2.5 per cent annually. We thus aim to continuously reduce the use of resources and the volume of waste generated so as to protect the environment and save on costs. Intensity is strongly affected by the capacity utilisation of our facilities: the more products the facilities produce within the operating times, the lower the intensity (improved efficiency). Capacity utilisation depends primarily on the order situation, over which we have only limited influence. We do have a direct influence on the technical facilities (energyefficient production facilities), process control in production (lean workflows and smooth operation), formulations (cold or hot production of prod uct content) and the avoidance of waste during production and distribution. The following environmental indicators are essential for Weleda: the consumption of potable water and energy as well as the amount of waste in relation to the production volume of finished products and product content. The charts below show the suc cesses to date, the current status and our targets up to 2022. The key figures relate to the manufacturing countries of France, Germany and Switzerland. The largest quantities are produced at these locations. Potable water consumption in relation to production volume (product content). Target: reduction Development of water intensity from 2010 to 2019. Reference year 2017: 100 % Water intensity 100 % 100 % 100 % – 2.5 % – 12.5 % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Values achieved with relative development compared to the previous year Target by 2022 Water intensity in l / kg product content Energy consumption in relation to production volume (product content). Target: reduction Development of energy intensity from 2010 to 2019. Reference year 2017: 100 % Energy intensity 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Values achieved with relative development compared to the previous year Target by 2022 Energy intensity in kWh / kg product content + 2.1 % – 9.3 % Waste intensity Waste volume in relation to production volume (finished product). Target: reduction Development of waste intensity from 2010 to 2019. Reference year 2017: 100 % + 8.3 % – 2.8 % 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Values achieved with relative development compared to the previous year Target by 2022 Waste intensity in g / kg finished product 31
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 New solar plant in the Netherlands Weleda Benelux has built a carport at its headquarters in Zoetermeer, the Netherlands, whose roof supplies the company with energy. nies that there are sustainable solutions because, according to the government’s timetable, all enterprises in Holland should reduce their energy requirements by 49 per cent by 2030. There are temporary tax benefits for this. Since it was not pos sible to install solar modules on the com pany roof, the only option left was to build a carport. In the first place, the new car port serves to generate electricity. In this way, Weleda Benelux has successfully managed to generate its own electricity and reduce its carbon footprint. 400 solar collectors sit close together on the new carport roof next to the company building. Since the beginning of 2020 they have been converting the incident light into electricity. Almost 60 per cent of Weleda Benelux’s energy requirements can be cov ered by the collectors. The company wants to lead by example and show other compa Optimisation of the transport capacity utilisation Around 2,700 pallets, and thus 80 truck journeys, are to be saved each year by making greater use of transport packaging for natural and organic cosmetic products at a comparable sales volume. In the classic sense, corrugated cardboard boxes are used as transport packaging, socalled tertiary packaging. These boxes, also known as trays, have important tasks and have an effect in many areas: on the stability of the pallet load, on trans port safety, even on the wellbeing of the employees when they have to pull a tray out of a pallet layer. As simple as a tray may be, the system is complex because there are many dependencies to consider. A project to optimise tertiary packaging materials was already launched at the end of 2017. Analyses have shown that trays of various product groups are not being used to their maximum possible capacity. Since the beginning of 2020, a new con cept has been tested in production batch sizes. Other positive effects: packaging material can be saved, costs for transport and parking space can be reduced and CO2 emissions can be cut. 32 IN BRIEF Renewal of ultrapure water treatment Water plays a decisive role in the production of natural cos- metic products and pharmaceu- ticals. At Weleda we use purified water. Mineral salts and other unwant ed substances are removed from drinking water by ion exchange and reverse osmosis. The ultra pure water produced in this way can be reused for the manufac ture of various Weleda products. However, it is mostly used for cleaning the production equip ment. The demand for ultrapure water in Germany was deter mined at the beginning of 2020, as a new water treatment plant is planned. The future plant will have a greater efficiency than the previous one. In the long run, wa ter can therefore be saved. A V I E W F R O M O U T S I D E In ten years’ time, we will see more clearly what problems arise from climate change and species extinction. Ideally, Weleda products should actively con tribute to solving these problems. Dr Arthur Braunschweig, Switzerland President of öbu – Swiss Association for Sustainable Business
04 Sustainable sites, production and logistics Innovative shipping packaging Weleda France dispatches natural and organic cosmetics products in a small house. The brilliant packag ing format provides joy and gives the transport carton a second life. ment. For example, the packaging mate rial is made from 100 per cent waste paper. The production company is located in the region, barely 60 kilometres from Weleda France. Due to the short distance to the place of use, the CO2 footprint in the eco balance can be reduced. The new closure system also has a positive effect on the ecobalance: the transport carton is glued with parcel tape made of paper and no longer wrapped with stretch film. Three tons of plastic film can be avoided per year. But why the format of a house? The main purpose of the pointed roofs is to prevent further cartons from being stacked on top of fragile products. This reliably reduces the rate of damaged articles. The small cardboard house thus protects sensitive goods and allows the cardboard a continued existence – to the delight of many children. Since January 2020, some customers of Weleda France have been receiving their ordered goods in eyecatching transport packaging. The small cardboard house is decorated with lovingly drawn pictures for colouring in and thus looks quite differ ent from ordinary tertiary packaging. There is no question that customers accept the little house with enthusiasm and place it in the shop for children to play in. Others want to present the unique packaging at events and show users how recycling and environmental protection can be innova tively combined. The new transport carton has many advantages that go beyond playful recycling and benefit the environ Next target: 1,000 days without an accident at work With almost 1,500 accident-free days or four years without an accident, Weleda Brazil had set an in-house record for labora- tory work up until 2015. Due to absences and standin sit uations, this high figure could no longer be achieved. By 2019, at least 500 accidentfree days were recorded again – supported by in tensive discussions, the “Week ly Dialogue on Safety”. Further measures are now being planned, such as safety control points. Be cause in the next stage Weleda Brazil is trying to achieve 1,000 accidentfree days. Combined line for natural and organic cosmetics A new filling and packaging line was designed for the Schwäb- isch Gmünd site in 2019. It replaces two old lines and can fill both aluminium and plastic tubes in different sizes. The ma chine is designed for a higher number of cycles and relieves the burden on employees as ad ditional processes are automat ed. In addition, the production ca pacity can be expanded flexibly. The combined line will be put into operation at the beginning of 2021. Not only protects our products, but also delights children: the new shipping packaging. 33
05 Meaningful and effective work Weleda is a business enterprise and at the same time a place of human development based on common tasks. People want to engage in meaningful activities. That’s our experience. And it is our belief that all individuals wish to grow and develop in the course of their lives. In order to promote this, we will also continue on our path to collegial leadership in 2019.
#getexcited In 2015, Marcel Locher launched the “Bike to Weleda” campaign with the aim of promoting the journey to work by bike. In 2019, the campaign was supported by the state of Baden Württemberg with 10,000 euros.
Goodprint #getexcited Twice around the world with colleagues worldwide Cycling to work is healthy. But Marcel Locher of Weleda in Arlesheim was concerned with more than that when he wanted to combine national programmes into a world wide movement. Employees from 11 countries are mean while participating in Bike to Weleda. In the beginning there was an e-mail. In 2015 Marcel Locher wrote to colleagues in France and Germany: wouldn’t they like to share their enthusiasm, at least virtually cycle with each other and thus even do something good for the planet? You bet! The idea of the “bicycle freak”, as he calls himself, developed into a summer cam paign in which a total of 228 colleagues from Argentina to New Zealand and Switzerland took part in 2019. This can be seen on a new website which last year was financed with 10,000 euros from the “RadKULTUR programme of the German state of Baden- Württemberg. All the Weleda locations taking part are listed along one route, along with the most eager cyclists and the record that was pedalled last year: twice around the globe. What is com ing in 2020? “Hopefully one or two new additions!” Across oceans, “a completely different kind of solidarity” has already developed, says Marcel Locher, for whom appreciation for others is just as im portant in his work in the Sustainability team as it is in his volun tary work, which is supported by many helpers. “Nobody gets paid, but they get a smile and wonderful stories.” Like from some col leagues from the Brazilian metropolis of São Paulo for whom cycling there is too risky. They’re nevertheless still in it. On foot. More information can be found at www.biketoweleda.de More international than ever: tyres were mended in Switzerland while colleagues busily pedalled away in Russia and celebra tions took place in Germany to mark the completion of the challenge. 36
05 Meaningful and effective work Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Milestones 2019 Trend Assessment Promotion of the Weleda culture and personal and professional develop ment A wide range of offers and initiatives, such as: Weleda Biography Days for all interested employees Resilience training Mindful selfmanagement Appreciative communication Promotion of worklife balance, health and diversity at the main sites Health marketplace for information and encouragement “Healthy living in focus” (CH, D) Active involvement by and for employees Intercultural coaching Company eurythmy A wide range of provisions and initiatives, such as: Choir (CH) Yoga (CH, D) Meditation (CH, D) Massage (CH, D) Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Place for human development based on shared tasks Introduction of a Global Leadership Programme Successful implementation of four training events in Dornach (CH) Worldwide development of Weleda culture and identity Successful implementation of the international compact curriculum Weleda Identity and Core Values Talent management Introduction of the Talent Management 2.0 programme Promotion of a worklife balance, health and diversity worldwide International exchange between colleagues in HR Group Conference “People at Weleda”: presentation of the workshop provision Weleda Biography Days as a contribution to personal development and resilience Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 37
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 The German version of our selfimage Two years ago, we put our corporate purpose into new words. Now we have developed a German variation from the English version. With the sentence, “We dare to care. Inspired by anthroposophy, we dare to make a dif ference,” we have reformulated the Weleda purpose. The majority of our employees work in Germanspeaking countries. So that everyone can connect with the meaning of the sentence, we have therefore created a German version: Inspiriert durch Anthroposophie, gehen wir mit Liebe mutig neue Wege. (literally in English: Inspired by anthro posophy we courageously take new paths with love.) The focus was not on literal translation but on meaning. “The sentence should be filled with life,” says Dr Isabella Heidinger, responsible for culture and identity at Weleda. What does the word “love” mean in this context? “Love is not meant here as a nice feeling, but as an attitude: respectful, interested, caring, responsible.” “Associative collaboration is more than cooperation” A V I E W F R O M O U T S I D E My wish is that Weleda becomes more committed to supporting women, babies and families and that it will become more involved in maternal care. Sheena Byrom, Great Britain Midwife, author and speaker Collaboration beyond company boundaries: this is what associative togetherness is all about. “Associative collaboration is more than cooperation,” explains Dr Isabella Hei dinger, also responsible for human resources development at Weleda. “We are trying to make company boundaries more elastic in order to work together on big issues that we cannot solve alone. Robin Saffarian is happy to work for two companies. 38 THREE QUESTIONS TO ROBIN SAFFARIAN, FIRST ASSOCIATIVE STUDENT AT WELEDA AND GLS BANK How did it come about that you are doing your training at two companies at once? I applied to Weleda. Then I was asked whether I would also like to do practical phases at GLS Bank. I think this is a wonderful opportunity and I get to be the first to do it – that’s great. How has the training been going so far? I started my studies at Alanus Uni versity in September 2019. From January to the end of February I was in the human resources department at Weleda. I will then spend the practical phase in summer at GLS Bank. What are you looking forward to in your studies? I am delighted to work for two com panies that are so concerned about sustainability. I also find it exciting to live in three different cities in one year – Bochum, Bonn and Schwäbisch Gmünd. I am looking forward to meeting different people, seeing different places, get ting involved in different areas. Twice a year we meet with other com panies like VAUDE, Lilly Pharma, GLS Bank and Systelios Klinik. We think about the experiments we can tackle together.” What are we working on together? An associative course: in 2019, together with GLS Bank, we launched the experiment Associative Studies in Busi ness Administration. We expect this to lead to a new quality in training – formed in different cultures, with broadened horizons and unique opportunities for personal and professional development. In Septem ber 2019, the first associative student started (see interview in the middle). In 2020 we plan to allocate further asso- ciative study places. Associative leadership training: in September 2019, the first joint manage ment training course took place – a new format that we developed together from four companies. A number of man agers from each of the companies involved took part. The response was so encour aging that we are planning the second module together.
05 Meaningful and effective work How work can function without a manager People who can identify with their work get more involved and are more successful. Olga Böhme, Managing Director of Weleda Russia, was able to experience this at first hand. Since 2018, she and her team have been testing cooperative leadership with selfmanaging teams and greater freedom of decisionmaking. She tells us what that looks like in an interview. What were the first steps like? OLGA BÖHME: First we had to prepare our selves as a management team, because this change only works if you are willing to cede control and place your trust in others. We then changed the recruitment process and paid more attention to whether the applicants represented our values. In the marketing team we then started the first experiment of a selfmanaging team. What did this experiment look like? The six people on the team started to man age themselves. This means that although they coordinate the strategic marketing plan with me, they decide everything else The team is highly motivated. You can feel the enthusiasm. The employ ees have grown through the responsibility and trust. Olga Böhme Regional Director Northern, Central and Eastern Europe and Managing Director Weleda Russia themselves or as a team. They also dis tribute the tasks within the team itself. Sometimes this works well, sometimes not so well. Here it is my role to coach the team. Have there ever been setbacks? The whole thing is a process – with each month you understand better how it can work. We have worked out rules to gether. We always adjust them after three months. Then we see what works and what doesn’t. What successes have been achieved since the changeover? The team is highly motivated. You can feel the enthusiasm. We also receive feed back time and again that the employees have grown through the responsibility. Joint activities are also an important compo nent: yoga, Cross Fit and English lessons. In addition, we are all reading Reinvent ing Organisations by Frederic Laloux. One of us prepares a chapter and we discuss it together. It welds us together and is fun. What are the next steps? Our vision is to build up the entire organ isation in circles and thereby reduce hier archies. I am often asked what such a structure can look like. I can’t tell yet. But we already have ideas and are trying them out and then adapting them. There’s no other way. I don’t think there’s any catchall solution. 39
#promotingculture Over the years, the European Church Music Festival has developed into a cul tural event of distinction. Weleda has been a sponsor from the very beginning. Klaus Stemmler (Director, left), Katha rina Lampe (Organisation) and Theo Stepp (Weleda) are looking forward to the festival.
06 Cultural and social relationships and development We support our shared social life in many different ways, for example by promoting art and culture. Through our active involvement we make a contribution to the cohesion of our society and to the improvement of the essentials of life. Through our publications and action days we inspire people to lead sustainable and healthy lives.
Goodprint #promotingculture Siyou Isabelle Ngnoubam djum and Hellmut Hattler gave a thrilling concert in the Münster at Schwäbisch Gmünd. How music inspires us to ask about the questions of life Concerts, church services and master classes form a complete package during the threeweek Schwäbisch Gmünd European Church Music Festival, which is almost unique in Europe. Weleda has been one of the main spon sors for 20 years. A misty nave. Dancers dressed in white, moving between standing visitors – there has never been anything like this in the 800-year history of the Romanesque Church of St John on the market square in Schwäbisch Gmünd. On August 6th 2020, however, the Moritz Ostrusch njak company will be here to give their “Boids” performance, one of the highlights of the festival. For the 33rd time, internation ally renowned artists are being invited to make sacred music a tangible experience in 12 churches in the city and the surrounding area and “to shed light on existential questions,” as artistic director Klaus Stemmler says. “Boids” is a perfect illustration of this year’s motto “I and We”, with its focus on the behaviour of individuals in a group. At the opening concert on July 15th in the Church of St Augustine, in contrast, countertenor Philippe Jaroussky will perform baroque “celes tial music” as a soloist with the L’Arpeggiata ensemble. “All this is made possible by a great team and of course by supporters like Weleda AG,” says Klaus Stemmler, who himself was a cathedral chorister for many years. “We are all inspired by this task and our success encour ages us to continue.” In 2019, around 15,000 festival-goers took advantage of the opportunity to be deeply touched by music and personal encounters. More information can be found at www.kirchenmusikfestival.de Concert for choir and large orchestra at the Cathedral of the Holy Cross in Schwäbisch Gmünd 42
06 Cultural and social relationships and development Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Milestones 2019 Trend Assessment Commitment to anthroposophic medicine Attracting scientific staff for the Anthroposophic Pharmacy Competence Centre Inspiring people Programme “Diversity wins! Prospects for people who have experienced displacement” Commitment to a pharmaceuticals business that balances shared responsibility for the system of anthroposophic medicine with economic considerations Weleda publications: Weleda Nachrichten (D – A – CH), magazine for customers and users (print run: 34,000, two issues per year) PTAWissen (D), trade magazine to support the PTA (print run: 29,000, two issues per year) Hebammenforum (D), specialist magazine to support midwifery work (print run: 20,500, two issues per year) Werde (D – A – CH), consumer magazine (print run: 33,000, four issues per year) – support for the BioBoden and proBiene initiatives Social media (CH, D, A): Facebook fans: 235,920 Instagram followers: 93,362 Experience Centre (D): Number of visitors in 2019: 28,000 Implementation of orientation internships in Germany Initiation of a series of events with external partners with lectures and discussions about life in Germany Start of regular volunteer “Bicycle workshop with discussion” meetings in Germany Continuation of the “lunches” for associative discussion with partners in Switzerland Implementation of company tours for young people with experience of displacement aimed at professional orientation in Switzerland Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Sustainable and healthy lifestyle Communication of at least 777 Weleda “goodprints”, which highlight the good deeds of Weleda and Weleda em ployees and inspire people to lead sustainable lives Preparatory work Summary of the existing “goodprints” Internal communication Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 43
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 IN BRIEF Green Beauty Days How can I work for more sustain- ability and biodiversity every day? Green Beauty Days were held in Berlin and Vienna in September 2019 to enable users to explore this issue. Weleda experts ex plained Weleda’s quality stand ards and care philosophy in ex perience workshops. They showed the positive influence that sus tainable care products have on the skin. A panel discussion in spired guests to think about how they can integrate closeness to nature into their everyday lives. Donate instead of throwing away At events there are often sam- ples left over that are still per- fectly usable but no longer suitable for retail sale. We want to prevent these valuable prod- ucts from becoming waste. At the Schwäbisch Gmünd site, such sample packs from the midwifery department are being sent to a social cause: they are being donated to the food shar ing project carried out by the youth culture initiative Esper anza. The initiative distributes food and donations of goods from commercial partners free of charge. 44 (Valeriana officinalis) was carried out to determine whether the typical character istics, such as growth form, smell and root growth, are present and whether the re quirements of the pharmacopoeias for the ingredients are met. A source with opti mal morphological characteristics and ingre dients is now being further propagated. Over 30 species are currently being culti vated for conservation. Hortus returns some species, such as the Alpine edelweiss (Leontopodium nivale subsp. alpinum) , to the wild in the Engadine. In this way the association contributes to the strengthen ing of biodiversity. More information can be found at www.ortusofficinarum.ch Seeds for highquality medicinal plants Complementary medicine and natu ral cosmetics require highquality medicinal plants. In the association Hortus officinarum we are making a contribution to the availability of biodynamic medicinal plant seeds. The basis for highquality medicinal plants is suitable seeds. Since 2008 the in dependent nonprofit association Hortus officinarum has been improving and main taining the seed quality of many medicinal plant species. Its tasks include safeguard ing proven sources and the propagation and cultivation of species for which the seeds are not available on the market or are not available in organic or biodynamic quality. The association also strives to preserve the genetic diversity of medicinal plant seeds and to protect them from privatisation and patenting. Among the 200 members of the association are medicinal plant nurser ies, doctors, pharmacists, manufacturers of pharmaceuticals and natural and organic cosmetics – including Weleda. All those involved benefit from the cultivation work and the exchange of knowledge. In the Weleda medicinal plant gardens at the Schwäbisch Gmünd and Arlesheim sites, Hortus representatives cultivate and document numerous medicinal plant species for seed cultivation. In Schwäbisch Gmünd, for example, a comparative cultivation of three seed sources of (garden) valerian The association wants to preserve seeds of medicinal plants such as pansies (above) and edelweiss.
06 Cultural and social relationships and development projects to compensate for CO2 emis sions. To this end, it has specialised in re forestation and the protection of biodi versity. The organisation has planted over 9.4 million trees and created more than 500 species-rich woodland areas. Over time, more than 3.4 million metric tonnes of carbon dioxide emissions have been off set. At the same time, soil erosion is re duced, water quality is improved and new habitats for flora and fauna are created. Weleda has contributed to these practical climate protection measures with 361 native trees. That is the number of native trees that have been planted using the sales proceeds from September 20th. Green fleet uses the donations to offset CO2 emissions in both Australia and New Zea land and to combat the consequences of climate change. At its Australian location, Weleda is looking for further options to protect and regenerate biodiversity in the region – especially after the devastation caused by the bush fires. More information can be found at www.hortusofficinarum.ch A V I E W F R O M O U T S I D E I would like Weleda to support ideas and initiatives for a health system that is oriented towards the com mon good, for example solidarity in financing and pay ing for health instead of for medicines and equipment. Christian Felber, Austria Economist specialising in the common good and dance performer 45 Greenfleet climate protection project On the day of the global climate strike, September 20th 2019, Weleda Australia along with its custom ers supported climate protection. Customers of the Australian online shop were invited to take part in a climate pro tection campaign. All of the sales proceeds from September 20th went to Greenfleet, one of the largest nonprofit environmen tal protection organisations in Australia. Since 1997 Greenfleet has been initiating Working with schools In order to create awareness of sustainability and environmental protection, we invest in the en vironmental education of pupils in Eastern Europe. With the support of the environmental movement EСA in Russia, we began work ing with Eastern European schools in the year under review. A total of 2,150 teach ers and 43,000 pupils took part in the collaboration with Weleda in 2019. The schools are located in 77 Russian regions and seven other countries, including Ka zakhstan, Georgia and Ukraine. For prima ry and middle school pupils, materials that were both fun and educational were developed on the subjects of ecology and sustainability. To make it easily acces sible to teachers, the teaching material is available on a web portal: guidance for lesson planning, attractively animated presentations and other mate rials for interactive games and tasks. The teachers taking part welcome the oppor tunity to integrate environmental topics into their lessons: “The project is very relevant. It is so important to make every effort to improve the environmental situation,” commented a biology teacher from the southern Russian city of Rostov- onDon. A primary school teacher from Moscow reported that the children found many uses for old, unnecessary things in class: “We were very surprised that things can be given away, exchanged or borrowed for a while.” The collaborative work will be continued.
#growth Daniel Kugler and Eileen Smith are managing our first global brand campaign which has the motto “YOU ARE NATURE.” We presented the campaign to people in the trade at Vivaness, the world’s largest trade fair for natural and organic cosmetics in Nuremberg.
07 Management and finance A company is commercially successful when customers truly value its service and enable it to strengthen its financial resilience as a result. We regularly receive awards for our work. We are constantly working to improve the range of products we offer: with a customerfocused strategy and a high degree of commitment in our agencies around the world.
Goodprint #growth “YOU ARE NATURE.” For the first time, Weleda AG is setting out its stall worldwide with a global brand campaign. This unified identity was launched in the first markets, the UK and Germany, in autumn 2019. Austria and Switzer land followed at the beginning of 2020. The cam paign aims to show how deeply the human being is rooted in nature – as are the diverse products of Weleda. How did the company’s first joint brand campaign come about? DANIEL KUGLER: Products are becoming increasingly inter changeable. Consumers are finding it more difficult to make purchasing decisions. This makes brands that people can trust because they know what they stand for more important. With our global brand campaign we want to highlight what sets us apart as a brand and makes our products so unique. What sets Weleda apart? EILEEN SMITH: What makes us special, in essence, is our deep understanding of the inseparable connection between people and nature: nature with its medicinal plants and natural raw materials is as alive as we are. With “YOU ARE NATURE.” we ex press it very clearly. Weleda has stood for this since 1921. Can you give a specific example? DANIEL KUGLER: Because of this affinity between people and nature, it is important to us to bring the right product to the right person, tailored to his or her individual needs. For example, the skincare range for sensitive skin contains almond oil. Just as the almond protects its kernel with a shell, the oil gently and protectively wraps itself around the skin. All Weleda branches used the campaign for their marketing, as here Weleda South Korea in Seoul. 48 What other aims does the campaign have? EILEEN SMITH: It is intended to make Weleda better known on a global level and at the same time increase the profile of the brand, especially among younger consumers. In addi tion, major conventional brands are currently pushing into the growing natural and organic cosmetics sector and we want to position ourselves more clearly visàvis them as well. “YOU ARE NATURE.” is the name of the campaign, four models are its “face”? DANIEL KUGLER: As a global company, diversity is a major issue for us. That’s why we decided for the first time to choose four models from different cultural backgrounds. They can be seen in the video, the main tool of the campaign. What was it like developing the campaign? EILEEN SMITH: “YOU ARE NATURE.” is the result of close colla- boration between different departments, with the markets and our agency, all of which share the same strong passion for the brand. So it was fun! Campaign video: www.youtube.com/watch?v=fqzvX_BkdMo
07 Management and finance Our commitments and goals for sustainability Contribution to the Sustainable Development Goals of the United Nations More about Weleda and the Sustainable Development Goals of the United Nations on page 101. Our commitments Value added statement Financial resilience through corresponding equity ratio and liquidity Ensuring future viability through investment in the development of the company Definition of sustainability criteria for investment of the endowment fund of the Swiss pension fund Milestones 2019 Trend Assessment Ongoing continuation in 2019 (see page 50 and inside cover) Further increase in the equity ratio, resilience and independence of the company As in 2018, no interestbearing financial liabilities at yearend Further increase in cash and cash equivalents by EUR 12 million to EUR 48 million in 2019 In 2019 Weleda continued to undertake projects for the ongoing development of Weleda. The four most important of these are: Opening of three Weleda City Spas in the Netherlands Continuation of the planning (planning phase 2) for a new logistics centre in Schwäbisch Gmünd with production expansion plan Investment in a new glass filling line in Schwäbisch Gmünd for pharmaceutical and natural and organic cosmetics products Various projects to increase the proportion of raw materials from biodynamic agriculture Adoption of the draft sustainability criteria Trend: rising unchanged falling Assessment: Promise fulfilled Promise not fulfilled New targets for 2022 Status quo 2019 Trend Assessment Global B Corp Weleda and all its branches certified as B Corp Weleda has successfully passed the preliminary examination of the B Impact Assessment (prescreen) for its main sites (Germany, Switzerland, France) Trend: rising unchanged falling Assessment: Target easy to reach Target difficult to reach Target very difficult to reach 49
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Value added statement We will secure our company’s future viability by means of prudent, ethical business practices. By conducting our business in a responsi ble way, we improve Weleda’s ability to manage risk – from behaviour in the market, through environmentally relevant aspects, to relationships with employees and ex changes with all other key interest groups and stakeholders. In this way sustainable value added is created that can be distrib uted to our employees (income), to pro viders of capital (distribution, interest), to nonprofit institutions (donations) and to the public (taxes). Business performance in million EUR Value added in million EUR + 3.8 % 432.2 The business perfor mance increased mainly because of the growth in sales. + 4.3 % 182.7 After deduction of inputs The value added statement (inside cover page) illustrates how the economic activi ties of our company generate value for society: unlike the income statement, which is based on the viewpoint of the owners, the value added statement sets out the con tribution made by the Weleda Group to private and public income. The value added statement shows the expenditure with which Weleda achieved its company perfor mance and how the added value generated was distributed. Value added per employee in million EUR + 1.8 % 84,260 Value added per Weleda Group employee in a fulltime position Donations in million EUR Employees in million EUR Shareholders in million EUR + 13.0 % 2.6 Of this, EUR 2.2 million went to the School of Spiri tual Science in Dornach and various anthroposophic institutions. Lenders and creditors in million EUR – 66.7 % 0.2 Lenders received less inter est owing to the repayment of financial liabilities. 50 + 7.9 % 164.4 The added value generated was sufficient to cover the income of our employees. Our employees are coentre preneurs who are involved in the performance process. Supporting and promoting a sense of personal respon sibility and the way that each individual conceives of themselves are important to the company. ± 0 % 0.9 For 2019 the Board of Directors proposes mak ing a distribution of 7 per cent to shareholders. Taxes in million EUR – 55.4 % 2.5 IN BRIEF All information on a single website The new Weleda specialist por- tal brings together a wide range of information, knowledge and services from Weleda for medi- cal professionals and retailers on a modern, mobile-optimised website. After logging in, our customers will find expert knowledge and downloads on Weleda pharma ceuticals or natural and organic cosmetics products, among other things. You can also register di rectly for Weleda seminars via an events calendar or access the training provided by the Weleda Online Academy. www.weleda.de/fachportal Pharmaceuticals directory as an app Our pharmaceuticals directory, which was previously only avail- able in printed form, can now also be accessed as an app. This saves resources and the di gi tal directory can also be updated more quickly. The app is intend ed for professionals, i. e. doctors, nonmedical practitioners, phar macists and midwives, and can be installed on a tablet or smart phone like any other app. It is activated by means of individual DocCheck access. Since its release in April 2019, around 2,000 us ers have been taking advantage of the app.
07 Management and finance Development in the markets Our total sales exceeded EUR 429 million in 2019. As in previous years, the distribution of growth rates demonstrates how important our internationalisation is. The movements in the markets balance each other out and thus ensure stable development. Weleda is present in the following countries: Regional companies Agencies Netherlands + 9.8 % Germany + 2.7 % United Kingdom + 5.8 % Sweden + 17.6 % Ukraine + 27.5 % Total +4.1 % France – 4.2 % Spain + 7.0 % Switzerland + 6.7% Italy – 13.4 % Czech Republic + 34.4 % Austria + 1.8 % Russia + 37.0 % Brazil + 11.3 % Third-party sales of regional companies The percentages relate to the change in thirdparty sales of the respective Weleda company compared with the previous year (in local currency, page 58). Australia + 7.1 % New Zealand + 5.9 % USA + 7.4 % Chile + 9.5 % Argentina + 59.5 % America Argentina, Brazil, Canada, Chile, Mexico, Peru, USA Europe Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Macedonia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom Africa Egypt, Morocco Australia Australia, New Zealand Asia China, Hong Kong, India, Israel, Japan, Malaysia, Singapore, South Korea, Taiwan, United Arab Emirates 51
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Weleda in the markets The new Skin Food range became a growth driver in all markets. Internationalisation once again proved to be the right strategy, as strengths and weaknesses in the different markets balanced each other out. D – A – CH region In our region with the highest sales we can look back on a very successful 2019. Sales in natural and organic cos metics grew by more than 3 per cent com pared to 2018. We were also able to in crease our market share slightly. The growth drivers were primarily the new Skin Food products. The baby care range also recorded significant growth and here we now have a market share of almost 20 per cent. In the shower category, we held our own in the market with the two limited editions Sum mer Garden Shower and Forest Harmony in particular. We see our efforts in terms of sustaina bility and brand positioning rewarded once again: Weleda is the most sustainable cos metics brand from the perspective of con sumers in Germany. This was the finding of the Cosmetics 2019 sustainability study compiled by Facit Research. And accord ing to the Brand Relevance Index, we ranked 17th among the most relevant brands in Germany, far ahead of our competitors. #1 Weleda is the most sustainable cosmetics brand in Germany. 52 The reception area at the new offices of Weleda Italy France, Southern Europe and South America region been developed for building a sustainable business model for the future. France In France, we are facing a difficult market environment due to the tense political situation. The negative news in the press and social media about homeopathy and about the discontinuation of reimburse ment for homeopathic medicines is having a negative effect on the sale of our me dicines. In natural and organic cosmetics, Weleda remains the market leader in the organic cosmetics segment and has gained market share in the pharmacy trade despite increasing competition. We also attribute this to the Skin Food range and the Baby Liniment Calendula cream, which were successfully launched in spring. The reim bursement for homeopathic medicines has been reduced from 30 per cent to 15 per cent and will be discontinued from 2021. We expect a further negative impact on our sales. For this reason, a strategy has Italy The successful launch of Skin Food is hav ing a positive effect on sales. In addition, we were able to increase the demand for our products through online offers. After restructuring in distribution, which led to a slight decline in sales, we expect a posi tive impact on sales in 2020. Sales declined in the pharmaceuticals business, also be cause of negative public opinion towards homeopathy. Spain We increased sales of natural and organic cosmetics despite strong competition. Distribution in perfumeries was strength ened and is having a positive effect. We also opened our own online shop which boosted business via the Internet. In ad dition to the increase in our market share as a mother and baby brand, consumers
3.5 % growth in sales of natural and organic cosmetics in 2019 in our key region D – A – CH. have shown great interest in the expansion of the Skin Food range which has become a real growth driver for the company. In June 2019, the distribution of pharmaceu ticals was discontinued as low demand in Spain meant maintaining the segment could no longer be justified in business terms. Brazil The business in overthecounter medi cines continued to grow at doubledigit rates. We gained market share through our flagship product Ansiodoron. In natural and organic cosmetics we recorded stable sales growth. Overall, the demand for natu ral and organic cosmetics products and overthecounter herbal medicines is in creasing in Brazil. Chile The national crisis with violent riots throughout the country had a negative im pact on our sales. Until October, however, we recorded a very positive sales trend in natural and organic cosmetics and phar maceuticals, mainly owing to successful social media campaigns and effective measures in retail. Argentina The political situation is tense and business has suffered as a result. After the sharp depreciation of the currency in August 2018, the market recovered at the beginning of 2019. However, price increases and inflation led to a drop in sales. Thanks to our experience in crisis management, we continue to look to the future with optimism. 07 Management and finance North America and Western Europe region North America The trend reversal in North America continued in 2019 with strong growth well above the overall expansion in the market. The introduction of the new Skin Food range was a great success. This strong growth made Skin Food the best selling hand and body lotion in natural and organic cosmetics retail. Growth was achieved through several channels, in particular through the customers Whole Foods and Amazon. United Kingdom Despite the difficult economic situation caused by Brexit, we recorded stable growth in natural and organic cosmetics and expanded sales. Various market ing measures boosted sales of the new Skin Food products and strengthened brand awareness. Pharmaceuticals sales also grew through new distribution channels. Prof itability increased by 50 per cent thanks to excellent cost control and growing revenues. Skin Food – a success story It has been around since 1926 – the skin cream or simply just Skin Food. In 2019, three products were added to this popular universal cream and it quickly became a worldwide success. The launch of the Skin Food range was the biggest product innovation since the 2009 Pomegranate range. Years of testing and market research preceded the launch. An interdisciplinary and international team of mar- keting specialists and research and development experts worked closely together to launch Skin Food Light, Skin Food Body Butter and Skin Food Lip Balm in addition to the classic Skin Food. That the effort was worth- while was shown in February 2019 at Vivaness, the world’s largest trade fair for natural and organic cosmetics in Nuremberg, where the new Skin Food products won the Best New Product Award for the most innovative new product. Worldwide, the new Skin Food products were the main growth drivers in 2019 and won many prizes from Australia to the USA. The expansion of the Skin Food range is a good example of how to modernise a product with roots going back to the very beginnings of Weleda and make it fit for the future. Modernised and fit for the future: the successful Skin Food range 53
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Growth driver: the new Skin Food products generated signifi- cant sales growth in all markets. Growth in a difficult market environment The uncertain political and economic situation in Russia is weakening purchasing power. It is therefore all the more pleasing that Weleda’s sales are constantly on the rise. Within three years, the Weleda Russia team has managed to double sales. And this despite the fact that competition in Russia is fierce – many global players are meanwhile trying to enter the market with their natural pro- ducts and want a slice of the cake. Weleda products are now an established feature of chemists and pharmacies and sales in online distribution also grew rapidly in 2019. Benelux 2019 was a very strong year for the Benelux countries with growth of almost 10 per cent and a sharp increase in prof- itability. Growth was evident in both the Netherlands and Belgium and in all major product categories, including pharmaceuti cals. The main growth drivers were the new Skin Food products and the expansion of sales in Belgian pharmacies. The City Spas also made a significant contribution to total sales. Northern, Central and Eastern Europe region Russia Weleda Russia remained on a growth tra jectory and recorded a very successful year in 2019. This was due to sales growth through various channels, including per fumery, pharmacies and online. Successful 360-degree marketing campaigns did much to raise brand awareness and, as a result, led to significant sales growth. Ukraine Weleda Ukraine continued its double- digit growth in 2019. We attribute this to healthy growth for the baby and pregnan cy products and a general increase in brand awareness. Increased sales in online retail were also a success factor. 54 Looking back on a successful 2019: the team at Weleda Russia Scandinavia In Sweden, after years of only moderate growth, sales increased by a gratifying 20 per cent. This was primarily due to the new Skin Food products. There has also been a lot of change in other areas: a new organisational structure was put in place and a channel strategy for natural and organic cosmetics was developed. In Den mark and Norway, the new Skin Food products likewise generated sales growth. The Weleda pharmacy in Järna was closed owing to changes in government regula tions for anthroposophic medicines. Increased sales in online retail were a success factor in 2019.
07 Management and finance In 2019, the natural and organic cosmetics business grew at double-digit rates in Australia and New Zealand. Asia / Pacific region Asia In 2019, the Asian region again showed doubledigit growth. The new subsidiary in South Korea made a major contribution to this. The export country with the strongest growth was once again China, although we can only supply a partial range here be cause of import regulations – animal test ing is required that is unacceptable for us. Japan, still Weleda’s largest Asian market, likewise recorded doubledigit growth. Australia and New Zealand The strong doubledigit growth in natural and organic cosmetics continued in both countries. Skin Food is now the number one seller in New Zealand, surpassing the mother and baby and facial care lines. The pharmaceuticals business was unfortu nately affected by a recall of baby powder products due to packaging defects. How ever, the trend remained positive and sales are picking up again. In October 2019, Weleda South Korea introduced itself to the press and business partners at the Swiss embassy in Seoul. Just one of many marketing measures: Skin Food advertising on a tram in Prague Czech Republic Once again our team achieved doubledigit growth in the Czech Republic and Slovakia. The expansion of the Skin Food range and the strong focus on baby care contributed most to this. Our marketing and sales team orchestrated campaigns in all channels for both product lines, including a tram with a Weleda Skin Food look in Prague. Exports to Central and Eastern European countries In 2019, we again recorded stable growth for our export markets in Central and East ern Europe, especially in the Balkans and Georgia, while Israel registered doubledig it growth rates in its market and was able to further expand its market position. 55
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Weleda City Spa opened in Hamburg After successfully opening four City Spas in the Netherlands, Weleda added its first German location in HamburgBlankenese in January 2020. Project Manager Rita Wirtz tells us how the Spa got started and what next steps are planned. Already planning the next steps: Project Manager Rita Wirtz great importance to highquality and sus tainable materials in warm and restrained colours. What is the long-term goal of Weleda City Spas? Our dream is to open a network of Weleda City Spas in Europe to support people in their well-being. Up to now we have had our products for this purpose. In the Spa we come into direct contact with our users. We learn a great deal about their needs and in return receive a lot of affirmation of and trust for the effort we make together at Weleda. The market for massages and cosmetic applications is growing rapidly. Why? Today we communicate ever more quick ly and intensively through digital means. That this is stressful is undisputed. A mas sage reduces the stress hormone corti sol and lowers the heart rate. Regular mas sages have a positive effect on the im mune system. The neuronal centres of the reward system are stimulated. What specific steps are planned now? The next City Spa in Stuttgart will follow in late summer 2020. Despite the tight real estate market, we have found a spot in the middle of the city with assistance from the Stuttgart local authority. The Spa will also include a room for workshops. In prin ciple, Weleda sees opportunities to devel op a third business segment with its Spas, alongside natural and organic cosmetics and pharmaceuticals. Why open a City Spa in Hamburg in particular? RITA WIRTZ: We conducted market research for the whole of Germany which told us where our potential customers live. Ham burg and Stuttgart were top of the list, yet the two cities are very different. We want to learn from this in order to fur ther develop the project. How is the Spa doing so far? When I see people before and after treat ment, I am proud of what our products achieve in combination with professional application. The people are radiant and at peace. We are the intermediary between people and the power of nature. As with the City Spas in the Netherlands, we attach 56 When I see people before and after treatment, I am proud of what our products achieve in combination with professional application. Rita Wirtz Project Manager
07 Management and finance Excellent! In 2019, we won numerous awards worldwide for our commitment. We consider these awards to be a significant recognition of our work. They motivate us to continue on our path: for healthy nature, responsible management and effective products. A selection of the prizes we received in 2019 Green Brand Award for Germany, Austria, Hungary and the Czech Republic for their significant contribution to the environment, climate and nature conservation +++ Best Natural Face Product Award in New Zealand for Skin Food with over 410,000 consumers voting +++ Free From Skincare Award in the UK for Skin Food Body Butter +++ Best Skin Product of the Year in Denmark for Skin Food Body Butter +++ Glamour Beauty Award in Russia for Skin Food Light +++ Elle Magazine Genius Award in the USA for Skin Food 2020: Elle Beauty Award for Skin Food Light +++ Prix du Meilleur for Skin Food Light and Calendula Liniment selected by an independent jury and over 100 product testers 57
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Thirdparty sales of regional companies Thirdparty sales per company 2019 Currency in 1,000 Structure of thirdparty sales per company Employees (Fulltime employees) Change from previous year in local currency Pharma ceuticals Natural and organic cosmetics 2019 2018 39,898 35,865 177,823 89,432 19,909 9,387 10,701 8,689 10,541 74,990 7,084 9,462 131,558 5,126 626,991 8,659 42,119 1,484 0 21,843 19,511 134,769 2,577 48,745 11,054 2,409,454 3,108 4,728 2,783 5,075 3,151 3,014,098 2,309 + 6.7 % + 2.7 % – 4.2 % + 9.8 % + 5.8 % – 13.4 % + 1.8 % + 17.6 % + 7.0 % + 34.4 % + 37.0 % + 27.5 % – + 7.4 % + 59.5 % + 11.3 % + 9.5 % + 5.9 % + 7.1 % – 36 % 20 % 35 % 12 % 15 % 31 % 18 % 7 % 1 % 0 % 1 % 0 % – 3 % 51 % 79 % 41 % 50 % 6 % 0 % 64 % 80 % 65 % 88 % 85 % 69 % 82 % 93 % 99 % 100 % 99 % 100 % – 97 % 49 % 21 % 59 % 50 % 94 % 100 % 339 776 379 82 71 39 20 24 49 19 39 15 3 31 44 329 766 390 86 65 39 20 23 53 18 40 15 0 29 46 150 138 45 32 16 8 42 31 17 4 429,268 + 4.1 % 24 % 76 % 2,181 2,151 CHF EUR EUR EUR EUR GBP EUR EUR EUR SEK EUR EUR CZK EUR RUB EUR UAH EUR EUR USD EUR ARS EUR BRL EUR CLP EUR NZD EUR AUD EUR KRW EUR EUR Switzerland Weleda AG, Arlesheim Germany Weleda AG, Schwäbisch Gmünd France Weleda S. A., Huningue Netherlands Weleda Benelux SE, Zoetermeer United Kingdom Weleda (UK) Ltd., Ilkeston Italy Weleda Italia S. r. l., Milan Austria Weleda Ges. m. b. H. & Co KG, Vienna Sweden Weleda AB, Stockholm Spain Weleda S. A. U., Madrid Czech Republic Weleda spol. s r. o., Prague Russia Weleda East GmbH, Moscow Ukraine Weleda Ukraine LLC, Kiev Germany Weleda Services GmbH, Schwäbisch Gmünd USA (North America) Weleda Inc., Irvington NY Argentina Weleda S. A. Argentina, Buenos Aires Brazil Weleda do Brasil Ltda., São Paulo Chile Weleda Chile SpA, Santiago de Chile New Zealand Weleda (NZ) Ltd, Havelock North Australia Weleda Australia Pty Ltd, Warriewood Korea Weleda Korea Ltd., Seoul Total 58
07 Management and finance General economic development in 2019 and outlook for 2020 As the Weleda Group is very closely linked with Weleda AG, this management report describes both the financial position of the Weleda Group and that of the individual company Weleda AG. Development of sales The net sales of the Weleda Group for the 2019 financial year amount to EUR 429.3 million (previous year: EUR 412.3 million). This corresponds to a growth rate of 4.1 per cent, or EUR 17.0 mil lion, compared with the previous year (adjusted for exchange rate effects: 3.9 per cent, or EUR 16.3 million). This means that Weleda held up well in 2019 despite an intensely competitive market. The net sales from the individual company Weleda AG decreased by 1.5 per cent or CHF 4.6 million year-on-year, mainly driven by the translation of the German branch into CHF. Sales at respective year-end exchange rates in million EUR (change from previous year) 2019 2018 2017 2016 2015 429.3 (+ 4.1 %) 412.3 (+ 2.8 %) 400.9 (+ 2.8 %) 389.8 (+ 0.1 %) 389.5 (+ 6.9 %) Sales adjusted for exchange rate effects in million EUR (change from the previous year adjusted for shift in exchange rates as at December 31st 2019) 2019 2018 2017 2016 2015 429.3 (+ 3.9 %) 413.0 (+ 4.4 %) 395.6 (+ 2.9 %) 384.6 (+ 0.9 %) 381.0 (+ 4.9 %) Business performance The Weleda Group increased total sales to over EUR 429 million in 2019. The distribution of growth rates as well as the absolute increase in sales indicates that internationalisation continues to develop well. Above all, the increase in sales in Central and East ern Europe including Russia and Ukraine, the USA, and the com- pany established in South Korea in the previous year contributed significantly to the increase. Weleda opened or set up further City Spas in Amsterdam and Hamburg in the fourth quarter of 2019. The opening of a Spa in Stuttgart is being planned. The Spas, which are aesthetically and sustainably equipped, offer massages and facial treatments in accordance with Weleda’s holistic philosophy. Net result decreased slightly compared to 2018 mainly due to a lower operating result. The profit generated, coupled with stable net working capital, further increased the equity ratio and thus the resilience of the company. Pioneering decisions about the future are only possible on the solid basis which was estab lished in the last years. Some of the most important strategic decisions for the next years are the renewal of our infrastruc ture with the core element of a new logistics site in Germany, investments in research and development, the implementation of the natural and organic cosmetics and the pharmaceuticals strategy, the further development of our range of services offered, the continuation of the digital transformation, the implemen tation of collegial leadership and the Sustainability Programme 2018 – 2022. Employees The Weleda Group had an average of 2,168 full-time employees in 2019 (previous year: 2,116). Weleda AG had an average of 1,103 full-time employees (previous year: 1,091). Risk assessment Risks are an integral part of business operations. A risk manage ment system that enables the identification, analysis, control and monitoring of significant risks in the corporate environment is therefore particularly important for Weleda. In order to identi fy risks in good time and determine the appropriate action, our management regularly assesses, at Group level and at the level of Weleda AG, any significant internal and external risks that may impact the entire corporate environment. The Board of Directors discusses and approves the results of the risk assessment and any measures every year. 59
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Development of sales by markets and regions Around 49 per cent (previous year: 50 per cent) of sales were generated in the D – A – CH region (Germany, Austria, Switzerland). Sales in this region increased by 3.8 per cent to EUR 211.8 mil lion (previous year: EUR 204.0 million). Sales in France decreased by 4.2 per cent and amounted to EUR 89.4 million (previous year: EUR 93.4 million). Sales in the other regions increased by a total of 11.4 per cent to EUR 128.1 million (previous year: EUR 115.0 mil lion). The positive exchange rate impact on sales was EUR 0.2 million. Market performance of the Weleda Group by region in million EUR (exchange rateadjusted changes from the previous year) Total: EUR 429.3 million D – A – CH Germany, Austria, Switzerland North America, United Kingdom, Benelux Northern, Central, Eastern Europe Scandinavia, Russia, Czech Republic, Ukraine, CEE FISSA France, Italy, Spain, South America Asia / Pacific 211.8 (+ 3.3 %) 50.1 (+ 8.0 %) 29.4 (+ 24.5 %) 124.3 (– 1.8 %) 13.7 (+ 20.9 %) Development of sales in the business segments Natural and organic cosmetics accounted for EUR 327.0 million or 76.2 per cent of global sales (previous year: EUR 307.6 million or 74.6 per cent). The sales generated by pharmaceuticals decreased to EUR 102.3 million (previous year: 104.7 million), corresponding to 23.8 per cent (previous year: 25.4 per cent) of total sales. Global sales of the pharmaceuticals business segment decreased by 2.3 per cent in 2019 (previous year: decrease of 3.6 per cent). Sales in the D – A – CH region, which generated about 48 per cent of sales, increased by about 5.0 per cent compared with the pre vious year. In addition, growth impulses came from the South America region with growth in sales of 18.1 per cent (adjusted for exchange rate effects). In France, the yearonyear decline in sales was 12.4 per cent. Sales in the other markets decreased by 10.8 per cent (adjusted for exchange rate effects) compared to the previous year. Global sales of the natural and organic cosmetics business seg ment grew by 6.3 per cent compared with the previous year (5.2 per cent sales growth in 2018). The growth regions of West ern Europe, North America, Asia and Pacific as well as Central and Eastern Europe, including Russia and Ukraine, were primarily re sponsible for the improvement. Sales increased by 3.5 per cent in the D – A – CH region. Sales growth in all other countries totalled 9.2 per cent. Natural and organic cosmetics and pharmaceuticals Weleda Group Total: EUR 429.3 million Weleda natural and organic cosmetics Weleda pharmaceuticals 76.2 % 23.8 % Operating result Compared to the previous year, the consolidated operating result (EBIT) of the Weleda Group decreased by EUR 5.2 million to EUR 15.9 million (previous year: EUR 21.1 million) mainly due to the development in France. The EBIT margin decreased to 3.7 per cent (previous year: 5.1 per cent). The operating result (EBIT) in the separate financial statements of Weleda AG decreased, compared to the previous year, by CHF 0.8 million to CHF 3.6 million. Operating result (EBIT) in million EUR 2019 2018 2017 2016 2015 15.9 21.1 18.7 23.9 32.9 60
Result for the year The consolidated result for the year decreased by 9.3 per cent to EUR 13.0 million compared to the previous year. The financial result amounted to EUR – 0.5 million and was up on the previous year (previous year: EUR – 1.1 million). Mainly due to lower results within the Group and a tax refund in France, income taxes de creased to EUR 2.5 million (previous year: EUR 5.6 million). Ger many accounted for the biggest share of income taxes with EUR 1.8 million (previous year: EUR 3.4 million). The separate financial statements of Weleda AG showed a gain of CHF 0.2 million (previous year: loss of CHF 0.5 million). Result attributable to shareholders in million EUR 2019 2018 2017 2016 2015 13.0 12.9 14.3 11.2 10.1 07 Management and finance Financial and assets situation The equity ratio of the Weleda Group again increased and amounts to 52.9 per cent (previous year: 51.1 per cent) due to the net result for the year. Consolidated cash flow from operating activities amounted to EUR 26.6 million (previous year: EUR 9.1 million). Cash flows from investing activities increased, compared with the previous year, by EUR 3.1 million to EUR 14.3 million (previous year: EUR 11.2 million). Of the gross investments of EUR 14.5 million, EUR 1.9 million were invested in intangible assets and EUR 12.6 mil lion in property, plant and equipment. Around threequarters of the investments in property, plant and equipment or intangible assets were made at the two main production sites in Schwäbisch Gmünd and Arlesheim. Cash flow after investing activities amount ed to EUR 12.3 million (previous year: EUR – 2.0 million). Cash and cash equivalents increased by EUR 11.9 million to EUR 47.7 million at year-end. This resulted in a net financial cred it balance of EUR 47.7 million (previous year: EUR 35.8 million). Cash flow from operating activities for Weleda AG amounted to CHF 26.0 million (previous year: CHF 3.9 million) in the year under review and, after the deduction of net investments of CHF 16.5 million (previous year: CHF 16.5 million), came to CHF 9.5 mil lion (previous year: CHF – 12.6 million). Weleda AG repaid CHF 2.7 million (previous year: CHF 9.0 million) in interestbearing liabilities in the year under review. Investments in intangible assets and property, plant and equipment in million EUR 2019 2018 2017 2016 2015 14.5 10.9 12.9 7.6 8.0 61
T H E W E L E D A G R O U P A N D W E L E D A A G A N N U A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 1 9 Extraordinary events In the year under review there were no significant extraordinary events. Research and development activities The growth of natural and organic cosmetics was mainly driven by market expansion and innovation. In pharmaceutical research, Weleda has continued to press ahead with the development of competencies. For both segments together, Weleda again invest ed doubledigit millions in research and development this year. Outlook for 2020 The current COVID-19 situation makes a forecast for 2020 diffi cult for Weleda as well. In view of the current market conditions, planned innovation, the market presence and the brand strength of Weleda, we see continued good opportunities for growth of natural and organic cosmetics in most of the countries. In coun tries with particularly severe restrictions, we expect belowaver age growth or even declines. At Group level, we anticipate a de cline in sales of pharmaceuticals, mainly due to developments in France. Overall, we expect that the decisions taken for the future, such as investments in research and development, the implementation of the pharmaceuticals strategy, the productmix strategy for natural and organic cosmetics and the further mar ket development outside Europe will have a positive effect on the operating result. On the other hand, the COVID-19 situation particularly affects productivity and sales in some countries. Overall, we therefore expect stable overall sales and a less posi tive result than in 2019. 62
Consolidated Annual Financial Report 2019 Weleda Group BALANCE SHEET OF THE WELEDA GROUP INCOME STATEMENT OF THE WELEDA GROUP CASH FLOW STATEMENT OF THE WELEDA GROUP STATEMENT OF SHAREHOLDERS’ EQUITY OF THE WELEDA GROUP NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF THE WELEDA GROUP REPORT OF THE STATUTORY AUDITOR 64 65 66 67 68 80 Contact person for shareholders Paul Mackay, Chairman of the Board of Directors Secretariat and share register Sabine Lexen Tel. +41 61 705 22 02 Statutory auditor Ernst & Young AG Basel, Switzerland Corporate headquarters Weleda AG Dychweg 14, 4144 Arlesheim, Switzerland Tel. +41 61 705 21 21 www.weleda.com, www.weleda.ch Branch in Germany Weleda AG Möhlerstr. 3 – 5, 73525 Schwäbisch Gmünd Germany Tel. +49 7171 91 90 www.weleda.de 63
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Balance sheet of the Weleda Group Assets in 1,000 EUR Current assets Cash and cash equivalents Trade receivables Other current receivables Inventories Prepaid expenses and accrued income Total current assets Noncurrent assets Financial assets Investments in noncontrolling interests Property, plant and equipment Intangible assets Total noncurrent assets Notes 31.12.2019 31.12.2018 1 2 3 4 4 4 4 47,689 66,536 11,135 68,241 5,428 199,029 1,677 1,019 72,599 3,631 78,926 35,794 64,655 16,412 63,787 5,179 185,827 1,808 850 69,966 3,600 76,224 Total assets 277,955 262,051 Liabilities and shareholders’ equity in 1,000 EUR Liabilities Current liabilities Trade payables Other current liabilities Current provisions Accrued expenses and deferred income Total current liabilities Noncurrent liabilities Other noncurrent liabilities Noncurrent provisions Total noncurrent liabilities Total liabilities Shareholders’ equity Share capital Nonvoting share capital Capital reserves Retained earnings Treasury voting and nonvoting shares Shareholders’ equity excl. noncontrolling interests Noncontrolling interests Shareholders’ equity incl. noncontrolling interests Notes 31.12.2019 31.12.2018 5 6 7 7 8 20,176 11,552 3,362 21,580 56,670 2,289 72,004 74,293 130,963 3,800 7,600 8,716 126,715 – 520 146,311 681 146,992 18,468 12,184 5,575 18,386 54,613 2,230 71,257 73,487 128,100 3,800 7,600 9,600 112,749 – 540 133,209 742 133,951 Total liabilities and shareholders’ equity 277,955 262,051 64
Income statement of the Weleda Group A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P in 1,000 EUR Net sales of goods and services Other income Change in inventories of finished goods and work in progress Total operating income Cost of materials Employee income and social expenditure Other operating expenses Depreciation, amortisation and impairment losses on noncurrent assets Total operating expenses Operating result (EBIT) Financial expenses Financial income Ordinary result for the year Income taxes Consolidated result for the year Attributable to shareholders of Weleda AG Attributable to noncontrolling interests Notes 9 10 2019 429,268 2018 412,272 2,787 3,786 11 12 13 14 15 16 2,457 434,512 – 96,809 – 164,399 – 146,108 – 11,290 – 418,606 15,906 – 650 188 15,444 – 2,464 12,980 13,018 – 38 6,968 423,026 – 97,096 – 152,344 – 143,254 – 9,281 – 401,975 21,051 – 1,413 264 19,902 – 5,592 14,310 14,267 43 65
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Cash flow statement of the Weleda Group in 1,000 EUR Consolidated result for the year Depreciation, amortisation and impairment losses on noncurrent assets Changes in provisions Gain / loss from the disposal of non-current assets Changes in trade receivables Changes in inventories Changes in other current receivables and prepaid expenses / accrued income Changes in trade payables Changes in other current liabilities and accrued expenses / deferred income Other noncash items Currency and valuation influences not affecting liquidity Share of result of associated companies Cash flow from operating activities Investments in property, plant and equipment Divestments of property, plant and equipment Investments in financial assets Divestments of financial assets Investments in intangible assets Cash flow from investing activities Distribution / dividend payments to shareholders / noncontrolling interests Cash flow from change in current interestbearing liabilities (net) Sale of treasury voting and nonvoting shares Purchase of treasury voting and nonvoting shares Cash flow from financing activities Total cash flow Cash and cash equivalents at start of reporting period Total cash flow Currency translation effect on cash and cash equivalents Cash and cash equivalents at end of period 2019 12,980 11,290 – 2,900 181 – 1,294 – 4,175 5,056 1,572 2,399 1,396 311 – 190 26,626 – 12,563 21 – 32 115 – 1,891 – 14,350 – 884 0 538 – 98 – 444 11,832 35,794 11,832 63 47,689 2018 14,310 9,281 2,098 – 38 – 3,779 – 10,749 – 3,090 – 6,270 6,434 161 838 – 63 9,133 – 9,429 56 – 457 172 – 1,513 – 11,171 – 832 – 9,917 1,585 – 9 – 9,173 – 11,211 47,306 – 11,211 – 301 35,794 66
Statement of shareholders’ equity of the Weleda Group A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P in 1,000 EUR Shareholders’ equity as at January 1st 2018 Result for the year Dividends Change in treasury voting and non-voting shares including gain / loss from sale Currency translation effect / Other 2 Shareholders’ equity as at December 31st 2018 Result for the year Distribution Change in treasury voting and non-voting shares including gain / loss from sale Currency translation effect / Other 2 Shareholders’ equity as at December 31st 2019 Company capital 1 Capital reserves (agio) Accumulated currency difference Other retained earnings 11,400 9,600 – 2,861 100,867 14,267 – 832 283 1,014 11 11,400 9,600 – 2,578 115,327 13,018 – 884 71 532 349 – 4 Treasury voting and nonvoting shares – 1,102 562 – 540 20 Total excl. non- controlling interests 117,904 14,267 – 832 1,576 294 133,209 13,018 – 884 440 528 Non controlling interests 718 43 – 19 742 – 38 – 23 Total incl. non- controlling interests 118,622 14,310 – 832 1,576 275 133,951 12,980 – 884 440 505 11,400 8,716 – 1,975 128,690 – 520 146,311 681 146,992 1 Company capital is broken down as follows: 6,880 registered voting shares at CHF 112.50 3,984 registered voting shares at CHF 125.00 3,478 registered voting 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 The item Other retained earnings includes under Other a goodwill / badwill on the buyout of non-controlling interests. 67
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Notes to the consolidated financial statements of the Weleda Group General Due to rounding, individual figures in this report may not add up exactly to the reported sum. Key figures and changes are calculated based on the exact amount and not the reported rounded amount. Consolidation principles Accounting principles This Annual Financial Report has been prepared in accordance with uniform accounting standards (Weleda Accounting Manual). These accounting standards comply with the provisions on commercial accounting of the Swiss Code of Obligations (article 957 – 963 b OR). 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 are summarised in order to provide the reader with a better overview. These items are explained in detail in the notes. Scope of consolidation In addition to Weleda AG Arlesheim and its branch Weleda AG Schwäbisch Gmünd, 23 subsidiaries are fully consolidated within the Weleda Group statements. These companies are, without exception, Group com panies and controlled by Weleda AG Arlesheim. Weleda AG has direct or indirect investments of more than 50 per cent in these companies. In the year under review Weleda Services GmbH was incorporated and added to the scope of consolidation. The noncontrolling interest in Japan is consolidated using the equity method. The consolidated companies are listed in the notes. Consolidation method The consolidated financial statements are based on the annual statements of the Group companies as at December 31st 2019, which are prepared in accordance with the provisions of the Weleda Accounting Manual. The consolidation period is the calendar year. Capital consolidation is carried out in accordance with the AngloSaxon purchase method. For the fully consolidated companies, assets, liabilities, expens es and income are stated at 100 per cent. Non-controlling interests in consolidated shareholders’ equity and profit / loss for the year are disclosed separately. The carrying amounts of the parent company’s investment are offset against the current shareholders’ equity of the subsidiary companies. In accordance with the full consolidation method, assets and liabili ties as well as expenses and income also of those companies in which a third party is involved are in cluded in full in the Group accounts. Thirdparty shares of shareholders’ equity and of the results of consolidated companies are disclosed separately. Currency translation The financial statements of consolidated companies in foreign currencies are translated as follows: current assets, noncurrent assets and liabilities are translated at yearend rates (rate on balance sheet date), shareholders’ equity at historical rates. The income statement and the cash flow statement are translated using average rates for the year. The resulting currency translation effects are booked directly in retained earnings without impacting profit and loss. The following currency exchange rates are applied: 68
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P YEAR-END RATES in EUR 1 CHF (Swiss franc) 1 USD (US dollar) 1 GBP (pound sterling) 1 BRL (Brazilian real) 2019 Rates on balance sheet date 2019 Average rates 2018 Rates on balance sheet date 2018 Average rates 0.920 0.891 1.180 0.221 0.899 0.893 1.140 0.227 0.887 0.875 1.114 0.226 0.866 0.847 1.130 0.233 Intragroup transactions, balances and intercompany profits All intragroup transactions and balances are eliminated, as were all intercompany profits stated in the balance sheet. Balance sheet and valuation principles In general, assets and liabilities are 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. Sales recognition Sales are recognised on the transfer of risks and benefits to customers or upon provision of the service. This generally corresponds to delivery of the products. Current assets Receivables and other current assets are reported at their nominal values. The general risk of loss and individual credit risk have been accounted for on the basis of value adjustments. The valuation of inven tories is conducted on the basis of acquisition or production cost while observing the principle of lower of cost or market. Noncurrent assets Acquired intangible assets are recognised at the cost of acquisition, less amortisation. Property, plant and equipment is recognised at acquisition or production cost minus depreciation. Smallvalue intangible assets and property, plant and equipment with a value of less than EUR 1,000 are depreciated in full in the year they are added. Financial assets are recognised at the cost of acquisition. Equity holdings are consolidated using the equity method. Where there are indications of noncurrent assets being overvalued, carrying values have been reviewed and, where necessary, adjusted. Liabilities Liabilities are recognised based on their nominal value. Provisions for pension plans and similar obli gations are determined based on actuarial principles. The remaining provisions cover all recognisable risks for un determined obligations. Liabilities are recognised at the respective amount at which they are to be repaid. 69
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Treasury voting and nonvoting shares Treasury voting and nonvoting shares are recognised at cost at the time of acquisition. The holding of treasury voting and non-voting shares is disclosed as a negative item in equity. Upon resale, the profit or loss is allocated directly to the voluntary retained earnings. Leasing transactions Leasing and rental contracts are recognised on the basis of legal ownership. Accordingly, expenses as lessee are recognised on an accrual basis, whereas the leased or rented objects themselves are not recognised. The total amount of outstanding noncurrent rental and leasing obligations is included in the notes. 70
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Notes to the balance sheet and the income statement 1 Trade receivables in 1,000 EUR From third parties From companies in which a noncontrolling interest is held From shareholders Total trade receivables 2 Other current receivables 31.12.2019 31.12.2018 65,862 511 163 66,536 64,162 350 143 64,655 in 1,000 EUR From third parties From companies in which a noncontrolling interest is held Total other current receivables 31.12.2019 31.12.2018 11,128 7 11,135 16,399 13 16,412 3 Inventories in 1,000 EUR Raw, auxiliary and operating materials Unfinished products Finished products and trade goods Value adjustments on inventories Total inventories 31.12.2019 31.12.2018 17,862 11,201 41,506 – 2,328 68,241 17,755 10,637 38,097 – 2,702 63,787 71
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P 4 Non-current assets in 1,000 EUR as at January 1st 2018 Currency translation effect Equity valuation Additions Disposals Reclassification within non-current assets Depreciation, amortisation and impairment losses as at December 31st 2018 Currency translation effect Equity valuation Additions Disposals Reclassification within non-current assets Depreciation, amortisation and impairment losses Financial assets Investments in non controlling interests Property, plant and equipment Intangible assets Total non-current assets 1,437 8 0 457 – 172 0 806 4 63 0 0 0 67,418 1,117 0 9,429 – 253 8 3,670 8 0 1,513 0 8 73,331 1,137 63 11,399 – 425 0 78 – 23 – 7,737 – 1,599 – 9,281 1,808 4 0 32 – 164 2 – 5 850 2 190 0 0 0 – 23 69,966 1,009 0 12,563 – 1,454 251 3,600 36 0 1,891 – 117 – 253 76,224 1,051 190 14,486 – 1,735 0 – 9,736 – 1,526 – 11,290 as at December 31st 2019 1,677 1,019 72,599 3,631 78,926 Investments in noncontrolling interests include investments in companies in which the Weleda Group Financial assets include noncurrent amounts due from third parties, securities and investments of less than 20 per cent. holds between 20 and 50 per cent. Increases are due to equity valuation. Increases in intangible assets mainly comprise software. The increase in property, plant and equip ment consists primarily of investment projects as well as investment in replacements in Germany, France and Switzerland. The largest share of the amount under Property, plant and equipment, totalling EUR 26 million (2018: EUR 25 million), relates to Switzerland. The branch in Germany accounts for EUR 18 million (2018: EUR 16 million) and Weleda France has property, plant and equipment totalling EUR 12 million (2018: EUR 13 million). 72
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P 31.12.2019 31.12.2018 20,076 100 20,176 18,413 55 18,468 31.12.2019 31.12.2018 11,520 32 0 11,552 12,111 22 51 12,184 5 Trade payables in 1,000 EUR To third parties To the Group auditor Ernst & Young Total trade payables 6 Other current liabilities in 1,000 EUR To third parties To shareholders To the Group auditor Ernst & Young Total other current liabilities 7 Provisions in 1,000 EUR as at January 1st 2018 Increase Utilisation Decrease Currency translation effect as at December 31st 2018 Increase Utilisation Decrease Currency translation effect as at December 31st 2019 Of which current provisions Of which noncurrent provisions Pension provisions Tax provisions 1 Other provisions 2 Total provisions 32,778 3,255 – 3,761 – 415 – 45 31,812 3,729 – 1,743 – 400 241 33,639 957 32,682 231 0 – 5 0 – 23 203 69 – 4 0 – 5 263 0 263 41,095 6,306 – 3,105 – 177 697 44,816 792 – 1,806 – 3,538 1,199 74,105 9,561 – 6,871 – 592 629 76,832 4,590 – 3,553 – 3,938 1,435 41,463 75,366 2,405 39,059 3,362 72,004 1 The item Tax provisions includes only provisions for deferred taxes. 2 The item Other provisions includes, inter alia, currency provisions, provisions for strategic projects and procurement for replacements following the sale of Iscador, provisions for legal cases and provisions for jubilee and other longservice bonuses. 73
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P 8 Treasury voting and non-voting shares in 1,000 EUR Stock of treasury voting shares as at January 1st (in number: 198 / prior year: 195) Addition of treasury voting shares (in number: 23 / prior year: 4) Disposal of treasury voting shares (in number: 2 / prior year: 1) Cumulated currency differences Stock of treasury voting shares as at December 31st (in number: 219 / prior year: 198) Stock of treasury nonvoting shares as at January 1st (in number: 195 / prior year: 715) Addition of treasury nonvoting shares (in number: 0 / prior year: 0) Disposal of treasury nonvoting shares (in number: 160 / prior year: 520) Cumulated currency differences Stock of treasury nonvoting shares as at December 31st (in number: 35 / prior year: 195) Total treasury voting and nonvoting shares as at December 31st 2019 383 98 – 5 2 478 157 0 – 184 69 42 520 2018 378 9 – 4 – 383 724 0 – 567 – 157 540 2019, 160 non-voting shares were sold at an average transaction price of EUR 3,308. Furthermore, 18 treasury voting shares (nominal value CHF 1,000 each) were acquired at an average transaction price of EUR 5,221, five treasury voting shares (nominal value CHF 112.50 each) were acquired at an average transaction price of EUR 327 and two treasury voting shares (nominal value CHF 1,000) were sold at a transaction price of EUR 2,247. 9 Net sales of goods and services PRODUCT GROUPS Natural and organic cosmetics Pharmaceuticals Net sales REGIONS D – A – CH (Germany, Austria, Switzerland) North America, UK, Benelux Northern, Central and Eastern Europe (Scandinavia, Russia, Czech Republic, Ukraine, CEE) FISSA (France, Italy, Spain, South America) Asia / Pacific Net sales 2019 in 1,000 EUR 326,981 102,287 429,268 2019 in 1,000 EUR 211,781 50,121 29,390 124,322 13,654 429,268 2019 in % 76.2 23.8 100.0 2019 in % 49.3 11.7 6.8 29.0 3.2 100.0 2018 in 1,000 EUR 307,620 104,652 412,272 2018 in 1,000 EUR 203,957 45,379 23,564 128,125 11,247 412,272 2018 in % 74.6 25.4 100.0 2018 in % 49.5 11.0 5.7 31.1 2.7 100.0 74
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P 10 Other income in 1,000 EUR Total other income 2019 2,787 2018 3,786 Other income mainly comprises rental income, insurance compensations, service revenues from the showroom Espace Weleda Paris as well as refunds from suppliers. As of 2019, license income from third parties is now also included; until 2018 this was still included in financial income. 11 Employee income and social expenditure in 1,000 EUR Employee income Social expenditure Total employee income and social expenditure 12 Other operating expenses in 1,000 EUR Sales and distribution costs Operating costs Administrative costs Contributions, levies, property and capital taxes Other expenses Total other operating expenses 2019 127,557 36,842 164,399 2019 93,809 23,315 21,542 3,161 4,281 146,108 2018 117,752 34,592 152,344 2018 89,912 20,707 20,799 3,210 8,626 143,254 Other operating expenses includes, but is not limited to, sales and distribution costs such as advertising and market communication, sales documents, material costs of sales representatives and all postal costs. Operating and administrative costs include costs for building and machine main tenance, legal and consulting costs, IT expenses and costs for thirdparty research as well as nonoperating expenses. The item Other expenses includes donations to the School of Spiritual Science in Dornach as well as to other different anthroposophic institutions with a total amount of EUR 2.2 million (2018: EUR 1.9 million) as well as in the previous year the creation of provision for strategic projects of EUR 5.5 million. 75
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P 13 Depreciation, amortisation and impairment losses on non-current assets in 1,000 EUR Financial assets Property, plant and equipment Intangible assets Total depreciation, amortisation and impairment losses on noncurrent assets 14 Financial expenses in 1,000 EUR Interest and similar expenses Realised and unrealised foreign currency result, net Total financial expenses 15 Financial income in 1,000 EUR Interest and similar income Total financial income 16 Income taxes Income taxes occurred mainly in Germany and Switzerland. 2019 28 9,736 1,526 11,290 2019 – 223 – 427 – 650 2019 188 188 2018 33 7,649 1,599 9,281 2018 – 557 – 856 – 1,413 2018 264 264 76
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Other information Full-time equivalents The annual average number of fulltime equivalents for the reporting year, as well as the previous year, exceeded 250. Changes in full-time equivalents are stated in the management report. Contingent liabilities and other financial obligations in 1,000 EUR Contingent liabilities Fair value of derivative financial instruments 31.12.2019 31.12.2018 266 78 271 121 The derivative financial instruments relate to interest hedges (variable to fixed rate) in France for exist ing leasing obligations. Non-current rental and leasing obligations in 1,000 EUR Residual maturity up to 5 years Residual maturity over 5 years Total noncurrent rental and leasing obligations 31.12.2019 31.12.2018 15,575 2,468 18,043 15,272 3,009 18,281 There are rental and leasing obligations for computer hardware, vehicles and production machinery as well as buildings. Fee for the Group auditor Ernst & Young in 1,000 EUR Auditing services Other services Total fee 2019 259 214 473 2018 217 276 493 77
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Restricted cash in 1,000 EUR Within current assets Total restricted cash 31.12.2019 31.12.2018 277 277 270 270 Significant events after the balance sheet date There are no significant events after the balance sheet date which could impact the book value of the assets or liabilities or which should be disclosed here. 78
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Overview of Group and holding companies Consolidated companies Registered office Function Currency Company capital in 1,000 Capital share 2019 in % Capital share 2018 in % Weleda AG Weleda Benelux SE Weleda Ges. m. b. H. Weleda Ges. m. b. H. & Co KG Weleda Trademark AG Weleda Inc. Weleda Italia S. r. l. Weleda do Brasil Ltda. Weleda Naturals GmbH Weleda East GmbH Weleda S. A. U. Weleda (NZ) Ltd Weleda Australia Pty Ltd Weleda AB Weleda (Australasia) Ltd Weleda Chile SpA Weleda F + E AG Weleda Ukraine LLC Weleda Korea Ltd. Weleda Services GmbH Weleda spol. s r.o. Weleda UK Ltd Weleda S. A. Weleda S. A. Weleda Japan Co., Ltd. CH – Arlesheim / D – Schwäbisch Gmünd NL – Zoetermeer A – Vienna A – Vienna CH – Arlesheim USA – Irvington, N.Y. I – Milan BRA – São Paulo D – Schwäbisch Gmünd RUS – Moscow E – Madrid NZL – Havelock North AUS – Warriewood S – Stockholm NZL – Havelock North CHL – Santiago de Chile CH – Arlesheim UA – Kiew KR – Seoul D – Schwäbisch Gmünd CZ – Prague GB – Ilkeston F – Huningue ARG – Buenos Aires JP – Nagoya Headquarters: incl. production, trade and services Production and trade No operative function Trade Services Trade Trade Production and trade Services Trade Trade Production and trade Trade Trade Services Production and trade Services Trade Trade Services Trade Production and trade Production and trade Production and trade Production and trade The share of voting rights corresponds to the capital share. CHF EUR EUR EUR EUR USD EUR BRL EUR RUB EUR NZD AUD SEK NZD CLP CHF UAH KRW EUR CZK GBP EUR ARS JPY 4,750 2,269 36 1,100 920 8,525 500 27,140 25 10 685 169 800 2,000 1,139 491,321 3,000 500 130,000 200 19,684 1,495 3,400 7,622 10,000 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.6 98.4 98.2 95.0 35.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 – 99.6 98.1 98.1 95.0 35.0 79
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A G R O U P Report of the statutory auditor To the General Meeting of Weleda AG, Arlesheim Opinion In our opinion, the consolidated financial statements for the year ended December 31st 2019 comply with Swiss law and the consolidation and valuation principles as set out in the notes. Report on other legal requirements We confirm that we meet the legal requirements on licens ing according to the Auditor Oversight Act (AOA) and in dependence (article 728 CO) and that there are no circum stances incompatible with our independence. In accordance with article 728 a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of consolidated financial statements according to the instructions of the Board of Directors. We recommend that the consolidated financial state ments submitted to you be approved. Basle, April 17 th 2020 Ernst & Young Ltd Daniel Zaugg Licensed audit expert (Auditor in charge) Karina Gawron Licensed audit expert Report of the statutory auditor on the consolidated financial statements As statutory auditor, we have audited the accompanying consolidated financial statements of Weleda AG, which comprise the balance sheet, income statement, cash flow statement, statement of shareholders’ equity and notes (pages 64 to 79), for the year ended December 31st 2019. Board of Directors’ responsibility The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with the requirements of Swiss law and the consolida tion and valuation principles as set out in the notes. This responsibility includes designing, implementing and main taining an internal control system relevant to the prepa ration of consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circum stances. Auditor’s responsibility Our responsibility is to express an opinion on these con solidated financial statements based on our audit. We con ducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the con solidated financial statements. The procedures selected depend on the auditor’s judgment, including the assess ment of the risks of material misstatement of the consol idated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s prepa ration of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal con trol system. An audit also includes evaluating the appro priateness of the accounting policies used and the rea sonableness of accounting estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 80
Annual Financial Report 2019 Weleda AG Consisting of Arlesheim headquarters and branch office Schwäbisch Gmünd BALANCE SHEET OF WELEDA AG INCOME STATEMENT OF WELEDA AG CASH FLOW STATEMENT OF WELEDA AG STATEMENT OF SHAREHOLDERS’ EQUITY OF WELEDA AG NOTES TO THE FINANCIAL STATEMENTS OF WELEDA AG PROPOSED APPROPRIATION OF THE RESULT FOR THE YEAR REPORT OF THE STATUTORY AUDITOR 82 83 84 85 86 94 95 81
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Balance sheet of Weleda AG Assets in 1,000 CHF Current assets Cash and cash equivalents Trade receivables Other current receivables Inventories Prepaid expenses and accrued income Total current assets Noncurrent assets Financial assets Equity investments Property, plant and equipment Intangible assets Total noncurrent assets Notes 31.12.2019 31.12.2018 1 2 3 4 16,795 51,567 11,272 57,404 1,526 138,564 16,736 10,004 48,201 2,371 77,312 10,785 53,652 16,207 57,287 1,428 139,359 14,624 14,669 46,152 3,475 78,920 Total assets 215,876 218,279 Liabilities and shareholders’ equity in 1,000 CHF Notes 31.12.2019 31.12.2018 Liabilities Current liabilities Trade payables Other current liabilities Current provisions Accrued expenses and deferred income Total current liabilities Noncurrent liabilities Noncurrent interestbearing liabilities Noncurrent provisions Total noncurrent liabilities Total liabilities Shareholders’ equity Share capital Nonvoting share capital Statutory capital reserves Statutory retained earnings Voluntary retained earnings Treasury voting and nonvoting shares Total shareholders’ equity 5 6 8 7 8 9 13,585 25,445 4,176 8,436 51,642 28,513 51,137 79,650 131,292 4,750 9,500 11,016 3,400 56,483 – 565 84,584 12,497 26,431 6,380 6,636 51,944 32,259 49,219 81,478 133,422 4,750 9,500 12,000 3,400 55,871 – 664 84,857 Total liabilities and shareholders’ equity 215,876 218,279 82
Income statement of Weleda AG A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G in 1,000 CHF Net sales of goods and services Notes 2019 305,269 2018 309,860 Other income 11,217 12,432 Change in inventories of finished goods and work in progress Total operating income Cost of materials Employee income and social expenditure Other operating expenses Depreciation, amortisation and impairment losses on noncurrent assets Total operating expenses Operating result (EBIT) Financial expenses Financial income Result for the year before tax Income taxes Result for the year 3,232 319,718 – 103,117 – 116,279 – 83,334 – 13,420 – 316,150 3,568 – 1,487 187 2,268 – 2,045 223 5,007 327,299 – 108,557 – 110,851 – 90,571 – 12,970 – 322,949 4,350 – 1,167 216 3,399 – 3,905 – 506 10 11 83
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Cash flow statement of Weleda AG in 1,000 CHF Result for the year Depreciation, amortisation and impairment losses on noncurrent assets Changes in provisions Gain / loss from the disposal of non-current assets Changes in trade receivables Changes in inventories Changes in other current receivables and prepaid expenses / accrued income Changes in trade payables Changes in other current liabilities and accrued expenses / deferred income Other noncash items Currency and valuation influences not affecting liquidity Cash flow from operating activities Investments in property, plant and equipment Divestments of property, plant and equipment Investments in financial assets Divestments of financial assets Investments in intangible assets Cash flow from investing activities Distribution / dividend payments to shareholders Cash flow from changes in current interestbearing liabilities (net) Additions of noncurrent interestbearing liabilities Repayments of non-current interest-bearing liabilities Sale of treasury voting and nonvoting shares Purchase of treasury voting and nonvoting shares Cash flow from financing activities Total cash flow Cash and cash equivalents at start of reporting period Total cash flow Currency translation effect on cash and cash equivalents Cash and cash equivalents at end of period 2019 223 13,420 2,512 187 508 – 2,096 4,498 1,411 1,127 1,511 2,661 25,962 – 10,499 0 – 4,661 100 – 1,409 – 16,469 – 984 0 0 – 2,700 594 – 106 – 3,196 6,297 10,785 6,297 – 287 16,795 2018 – 506 12,970 1,609 5 – 3,134 – 4,086 – 5,009 – 2,584 2,454 256 1,956 3,931 – 6,783 1 – 12,047 3,434 – 1,143 – 16,538 – 961 – 9,013 14,249 0 1,816 – 10 6,081 – 6,526 17,656 – 6,526 – 345 10,785 84
Statement of shareholders’ equity of Weleda AG A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G in 1,000 CHF Company capital 1 Statutory capital reserves (agio) Statutory retained earnings Shareholders’ equity as at January 1st 2018 14,250 12,000 3,400 Dividends to shareholders Result for the year Change in treasury voting and nonvoting shares including gain / loss from sale Shareholders’ equity as at December 31st 2018 14,250 Distribution to shareholders Result for the year Change in treasury voting and nonvoting shares including gain / loss from sale Voluntary retained earnings 56,166 – 961 – 506 Treasury voting and nonvoting shares – 1,298 Total share holders’ equity 84,518 – 961 – 506 1,172 634 1,806 12,000 – 984 3,400 55,871 – 664 223 389 84,857 – 984 223 99 488 Shareholders’ equity as at December 31st 2019 14,250 11,016 3,400 56,483 – 565 84,584 1 Company capital is broken down as follows: 6,880 registered voting shares at CHF 112.50 3,984 registered voting shares at CHF 125.00 3,478 registered voting 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. 85
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Notes to the financial statements of Weleda AG General Due to rounding, individual figures in this report may not add up exactly to the reported sum. Key figures and changes are calculated based on the exact amount and not the reported rounded amount. Accounting principles This Annual Financial Report has been prepared in accordance with uniform accounting standards (Weleda Accounting Manual). These accounting standards comply with the provisions on commercial accounting of the Swiss Code of Obligations (article 957 – 963 b OR). The Annual Financial Report of Weleda AG complies with the law and the articles of incorporation. Certain items of the balance sheet as well as the income statement are summarised in order to provide the reader with a better overview. These items are explained in detail in the notes. Currency translation The accounts of the German business establishment are stated in euro and translated at yearend as follows: current assets, noncurrent assets and liabilities are translated at yearend rate (rate on balance sheet date), shareholders’ equity at historical rate. The income statement and the cash flow statement are translated using the average rate for the year. The resulting currency translation effects are booked directly in the income statement. The following currency exchange rates are applied: YEAR-END RATE in CHF 1 EUR (euro) 2019 Rate on balance sheet date 1.087 2019 Average rate 2018 Rate on balance sheet date 2018 Average rate 1.112 1.127 1.155 Balance sheet and valuation principles In general, assets and liabilities are 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. Sales recognition Sales are recognised on the transfer of risks and benefits to customers or upon provision of the service. This generally corresponds to delivery of the products. Current assets Receivables and other current assets are reported at their nominal values. The general risk of loss and individual credit risk have been accounted for on the basis of value adjustments. The valuation of inven tories is conducted on the basis of acquisition or production cost while observing the prin ciple of lower of cost or market. 86
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Noncurrent assets Acquired intangible assets are recognised at the cost of acquisition, less amortisation. Property, plant and equipment is recognised at acquisition or production cost minus depreciation. Smallvalue intangible assets and property, plant and equipment with a value of less than CHF 1,080 / EUR 1,000 are depreci ated in full in the year they are added. Financial assets are recognised at the cost of acquisition. Equity investments are also recognised at acquisition values and depreciated over five years. Additions to equity investments of less than CHF 100,000 are fully depreciated in the year of acquisition. Where there are indications of noncurrent assets being overvalued, carrying values have been reviewed and, where necessary, adjusted. Liabilities Liabilities are recognised on the basis of nominal value. Provisions for pension plans and similar obli gations are determined based on actuarial principles. The remaining provisions covered all recognisable risks for un determined obligations. Liabilities are recognised at the respective amount at which they are to be repaid. Treasury voting and nonvoting shares Treasury voting and nonvoting shares are recognised at cost at the time of acquisition. The holding of treasury voting and non-voting shares is disclosed as a negative item in equity. Upon resale, the profit or loss is allocated directly to the voluntary retained earnings. Leasing transactions Leasing and rental contracts are recognised on the basis of legal ownership. Accordingly, expenses as lessee are recognised on an accrual basis, whereas the leased or rented objects themselves are not recognised. The total amount of outstanding noncurrent rental and leasing obligations is included in the notes. 87
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Notes to the balance sheet and the income statement 1 Trade receivables in 1,000 CHF From third parties From associated companies From shareholders Total trade receivables 2 Other current receivables in 1,000 CHF From third parties From Group companies Total other current receivables 3 Financial assets in 1,000 CHF Loans to Group companies Other financial assets Total financial assets 4 Equity investments in 1,000 CHF Investments in Group companies with an interest of more than 50 per cent Other equity investments Total equity investments 31.12.2019 31.12.2018 33,234 18,156 177 51,567 35,342 18,149 161 53,652 31.12.2019 31.12.2018 7,688 3,584 11,272 13,298 2,909 16,207 31.12.2019 31.12.2018 16,225 511 16,736 14,051 573 14,624 31.12.2019 31.12.2018 9,926 78 10,004 14,565 104 14,669 88
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G 31.12.2019 31.12.2018 13,277 229 79 13,585 10,867 1,598 32 12,497 31.12.2019 31.12.2018 3,309 22,101 0 35 25,445 2,935 23,423 48 25 26,431 31.12.2019 28,513 28,513 31.12.2018 32,259 32,259 31.12.2019 31.12.2018 17,643 10,870 28,513 20,989 11,270 32,259 5 Trade payables in 1,000 CHF To third parties To associated companies To the statutory auditor Ernst & Young Total trade payables 6 Other current liabilities in 1,000 CHF To third parties To Group companies To the statutory auditor Ernst & Young To shareholders Total other current liabilities 7 Non-current interest-bearing liabilities in 1,000 CHF To equity investments Total noncurrent interestbearing liabilities MATURITY in 1,000 CHF Residual maturity 1 to 5 years Residual maturity over 5 years Total noncurrent interestbearing liabilities All financial liabilities due within the following 12 months are disclosed in current interest-bearing liabilities. 89
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G 8 Provisions in 1,000 CHF Pension Fund Other provisions Total provisions Of which current Of which noncurrent 31.12.2019 31.12.2018 27,071 28,242 55,313 4,176 51,137 25,448 30,151 55,599 6,380 49,219 Other provisions comprise, among other things, currency provisions for unrealised exchange rate gains on noncurrent financial positions, reserves for strategic projects, restructuring liabilities for the Weleda UK Pension Fund and provisions for jubilee and other long-term service bonuses. 9 Treasury voting and non-voting shares in 1,000 CHF Stock of treasury voting shares as at January 1st (in number: 198 / prior year: 195) Addition of treasury voting shares (in number: 23 / prior year: 4) Disposal of treasury voting shares (in number: 2 / prior year: 1) Stock of treasury voting shares as at December 31st (in number: 219 / prior year: 198) Stock of treasury nonvoting shares as at January 1st (in number: 195 / prior year: 715) Addition of treasury nonvoting shares (in number: 0 / prior year: 0) Disposal of treasury nonvoting shares (in number: 160 / prior year: 520) Stock of treasury nonvoting shares as at December 31st (in number: 35 / prior year: 195) Total treasury voting and nonvoting shares as at December 31st 2019 420 106 – 5 521 244 0 – 200 44 565 2018 414 10 – 4 420 884 0 – 640 244 664 2019, 160 non-voting shares were sold at an average transaction price of CHF 3,680. Furthermore, 18 treasury voting shares (nominal value CHF 1,000 each) were acquired at an average transaction price of CHF 5,808, five treasury voting shares (nominal value CHF 112.50 each) were acquired at an average transaction price of CHF 364 and two treasury voting shares (nominal value CHF 1,000) were sold at a transaction price of CHF 2,500. 90
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G 10 Financial expenses in 1,000 CHF Interest and similar expenses relating to Group companies Interest and similar expenses relating to third parties Realised and unrealised foreign currency losses, net Total financial expenses 11 Financial income in 1,000 CHF Interest from loans to Group companies Interest and similar income from third parties Total financial income 2019 – 800 – 13 – 674 – 1,487 2019 186 1 187 2018 – 736 – 155 – 276 – 1,167 2018 214 2 216 91
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Other information Full-time equivalents The annual average number of fulltime equivalents for the reporting year, as well as the previous year, exceeded 250. Changes in full-time equivalents are stated in the management report. Contingent liabilities and other financial obligations in 1,000 CHF Noncurrent rental and leasing obligations 31.12.2019 3,153 31.12.2018 3,496 Weleda AG has leasing and rental obligations for vehicles and production machinery as well as for buildings. Restricted cash in 1,000 CHF Restricted cash Fee for the statutory auditor Ernst & Young in 1,000 CHF Auditing services Other services Total fee 31.12.2019 185 31.12.2018 185 2019 213 209 422 2018 175 273 448 Significant events after the balance sheet date There are no significant events after the balance sheet date which could impact the book value of the assets or liabilities or which should be disclosed here. 92
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Registered office Function Currency Company capital in 1,000 Capital share 2019 in % Capital share 2018 in % The share of voting rights corresponds to the capital share. Investments Weleda Benelux SE Weleda Ges. m. b. H. Weleda Ges. m. b. H. & Co KG Weleda Trademark AG Weleda Inc. Weleda Italia S. r. l. Weleda do Brasil Ltda. Weleda Naturals GmbH Weleda East GmbH Weleda S. A. U. Weleda (NZ) Ltd Weleda Australia Pty Ltd Weleda AB Weleda (Australasia) Ltd Weleda Chile SpA Weleda F + E AG Weleda Ukraine LLC Weleda Korea Ltd. Weleda Services GmbH Weleda spol. s r.o. Weleda UK Ltd Weleda S. A. Weleda S. A. Weleda Japan Co., Ltd. NL – Zoetermeer A – Vienna A – Vienna CH – Arlesheim USA – Irvington, N.Y. I – Milan BRA – São Paulo D – Schwäbisch Gmünd RUS – Moscow E – Madrid NZL – Havelock North AUS – Warriewood S – Stockholm NZL – Havelock North CHL – Santiago de Chile CH – Arlesheim UA – Kiew KR – Seoul D – Schwäbisch Gmünd CZ – Prague GB – Ilkeston F – Huningue ARG – Buenos Aires JP – Nagoya Production and trade No operative function Trade Services Trade Trade Production and trade Services Trade Trade Production and trade Trade Trade Services Production and trade Services Trade Trade Services Trade Production and trade Production and trade Production and trade Production and trade EUR EUR EUR EUR USD EUR BRL EUR RUB EUR NZD AUD SEK NZD CLP CHF UAH KRW EUR CZK GBP EUR ARS JPY 2,269 36 1,100 920 8,525 500 27,140 25 10 685 169 800 2,000 1,139 491,321 3,000 500 130,000 200 19,684 1,495 3,400 7,622 10,000 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.6 98.4 98.2 95.0 35.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 – 99.6 98.1 98.1 95.0 35.0 93
A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Proposed appropriation of the result for the year Board of Directors’ proposed appropriation of the result for the year in CHF Voluntary retained earnings (without result for the year) Annual result for 2019 Total voluntary retained earnings 31.12.2019 56,259,560.42 222,958.25 56,482,518.67 Since the statutory capital reserves and the statutory retained earnings have reached 50 per cent of the share capital, there will be no further allocation. Provided the proposal is accepted the following distribution will be made out of the statutory capital reserves: in CHF Voting share / non-voting share (nominal) Distribution (7 per cent) 1 112.50 7.90 125.00 8.75 1,000.00 70.00 500.00 35.00 per voting share per voting share per voting share per nonvoting share 1 Free of Swiss withholding tax distribution out of the statutory capital reserves Repayments out of reserves from capital contributions (statutory capital reserves) of a corporation are not liable for withholding tax (article 5 [1bis] VStG). Hence the distribution is made gross. in CHF Statutory capital reserves before distribution Distribution on voting share capital of CHF 4,750,000.00 Distribution on non-voting share capital of CHF 9,500,000.00 Statutory capital reserves after distribution 11,016,274.00 332,500.00 665,000.00 10,018,774.00 Distribution payment out of statutory capital reserves Provided the General Shareholders’ Meeting approves the proposed distribution, we will pay the dis tribution in calendar week 26. No distribution will be paid for voting shares and non-voting shares held directly by the company at the time of distribution payment. Weleda AG, Arlesheim, April 17th 2020 On behalf of the Board of Directors Paul Mackay Chairman Dr Andreas Jäschke Deputy Chairman 94
Report of the statutory auditor To the General Meeting of Weleda AG, Arlesheim A N N U A L F I N A N C I A L R E P O R T 2 0 1 9 W E L E D A A G Opinion In our opinion, the financial statements for the year ended December 31st 2019 comply with Swiss law and the com pany’s articles of incorporation. Report on other legal requirements We confirm that we meet the legal requirements on licens ing according to the Auditor Oversight Act (AOA) and in dependence (article 728 CO) and that there are no circum stances incompatible with our independence. In accordance with article 728 a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system exists, which has been designed for the preparation of financial statements according to the instructions of the Board of Directors. We further confirm that the proposed appropriation of available earnings complies with Swiss law and the com pany’s articles of incorporation. We recommend that the financial statements submitted to you be approved. Basle, April 17 th 2020 Ernst & Young Ltd Daniel Zaugg Licensed audit expert (Auditor in charge) Karina Gawron Licensed audit expert Report of the statutory auditor on the financial statements As statutory auditor, we have audited the accompanying financial statements of Weleda AG, which comprise the balance sheet, income statement, cash flow statement, statement of shareholders’ equity and notes (pages 82 to 94), for the year ended December 31st 2019. Board of Directors’ responsibility The Board of Directors is responsible for the preparation of the financial statements in accordance with the re quirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, im plementing and maintaining an internal control system relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsi ble for selecting and applying appropriate accounting policies and making accounting estimates that are rea sonable in the circumstances. Auditor’s responsibility Our responsibility is to express an opinion on these finan cial statements based on our audit. We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and per form the audit to obtain reasonable assurance whether the financial statements are free from material mis statement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the finan cial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assess ments, the auditor considers the 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 expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evi dence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 95
N O T E S E N V I R O N M E N TA L S U S TA I N A B I L I T Y TA B L E Resources used to produce Weleda natural and organic cosmetics and pharmaceuticals Energy consumption in megawatthours Consumption within the organisation Total renewable energy Total nonrenewable energy Total Consumption of nonrenewable fuels Natural gas Heating oil Fuels Total Consumption of renewable fuels Biogas Energy consumption of electricity, heating and cooling Nonrenewable Electricity Heating and cooling Nuclear energy Other forms Total nonrenewable Renewable Solar energy Wind energy Geothermal energy Hydropower Biomassbased intermediate energy Total renewable Total Energy sources produced Electricity Thermal heat Energy sources sold Electricity 2019 2018 Change in % 16,715 18,509 35,224 15,876 495 974 17,345 16,401 18,594 34,995 15,471 522 1,045 17,038 988 980 787 150 224 3 1,163 2,543 677 0,4 10,354 2,034 15,608 16,771 143 11 34 1 ,342 157 48 9 1,555 2,445 726 1 10,654 1,458 15,285 16,840 144 30 38 + 1.9 – 0.5 + 0.7 + 2.6 – 5.1 – 6.9 + 1.8 + 0.8 – 41.4 – 4,7 + 370.0 – 63.5 – 25.2 + 4.0 – 6.7 – 61.3 – 2.8 + 39.5 2.1 – 0.4 – 0.9 – 63.0 – 10.1 96
N O T E S E N V I R O N M E N TA L S U S TA I N A B I L I T Y TA B L E Emissions in tonnes of CO2 equivalents Direct emissions Emissions from production of hot water, heat and steam 1 Fugitive emissions 1 Indirect emissions Electricity 1 Total 1 Values for 2018 updated compared to previous year (extended database) Water consumption in cubic metres Water withdrawal Water from public water supply Ground water Rainwater, collected directly and stored Total 1 Values for 2018 updated compared to previous year (extended database) 2019 2018 Change in % 3,710 70 1,198 4,979 3,577 107 1,232 4,916 + 3.7 – 34.5 – 2.7 + 1.3 2019 2018 Change in % 89,374 83,872 4,214 177,460 103,438 81,555 4,507 189,500 – 13.6 + 2.8 – 6.5 – 6.4 Purchased materials in tonnes Raw materials 1 Renewable Nonrenewable Total Packaging 1 Renewable Nonrenewable Total Advertising material 1 Renewable Nonrenewable Total Operating material 2 Renewable Nonrenewable Total 2019 4,726 305 5,031 2,287 3,287 5,574 821 84 905 61 74 135 2018 Change in % 5,071 304 5,375 2,225 4,359 6,584 1,129 263 1,393 65 96 161 – 6.8 + 0.3 – 6.4 + 2.8 – 24.6 – 15.3 – 27.3 – 68.0 – 35.0 – 5.9 – 23.2 – 16.2 97
2019 2018 Change in % 50 3 53 432 455 886 8,377 4,208 53 2 56 359 376 735 8,901 5,401 – 6.6 + 23.7 – 5.2 + 20.4 + 20.9 + 20.6 – 5.9 – 22.1 – 12.0 N O T E S E N V I R O N M E N TA L S U S TA I N A B I L I T Y TA B L E Purchased materials in tonnes Semifinished products and bulk goods 2 Renewable Nonrenewable Total Trade goods 2 Renewable Nonrenewable Total Proportion of renewable materials 3 Proportion of nonrenewable materials Total 12,584 14,303 1 2 3 Predominantly determined by direct measurement (invoices and ERP system). In case of doubt, classification as nonrenewable Estimates based on purchases and their material composition. In case of doubt, classification as non-renewable The drinking water used as raw material is not taken into account here as the water input is already included in the water consumption. Otherwise, the share of renewable materials would be significantly higher. 2019 20 37 740 18 350 29 25 1,221 17 16 55 1 2 29 120 2018 Change in % 39 46 772 8 424 24 46 1,358 7 13 51 0 0 43 115 – 48.1 – 19.5 – 4.1 + 140.6 – 17.4 + 23.4 – 44.4 – 10.1 + 132.7 + 25.7 + 7.4 + 100.0 + 100.0 – 32.3 + 5.2 1,341 1,473 – 8.9 Waste quantities in tonnes Normal waste Composting Reuse Recycling Recovery Incineration or use as fuel Landfill Other disposal Total Hazardous waste Recycling Recovery Incineration or use as fuel Landfill Onsite storage Other disposal Total Total 98
N O T E S E M P L O Y E E S TA B L E Employees of the Weleda Group Employees of the Weleda Group at a glance as at December 31st 2019 Number of female employees Number of male employees Total number of employees Total number of managers Nature of employment Fulltime employees Parttime employees Of whom female parttime employees Of whom male parttime employees Employment by age group Up to 30 years of age 31 to 50 years of age 51 to 60 years of age Over 60 years of age Total number of newborns Region D – A – CH 1 Western Europe 1 Northern, Central and Eastern Europe 1 North America 1 South America, Italy, Spain 1 Asia / Pacific 1 Total 930 506 1,436 226 861 575 505 70 219 770 366 81 53 418 150 568 93 386 182 164 18 91 305 144 28 11 88 16 104 21 89 9 9 0 19 80 2 2 9 22 9 31 15 30 1 1 0 2 2 2 2 1 233 109 342 56 303 39 33 6 65 223 41 13 14 55 18 73 13 25 48 40 8 2 2 2 2 2 1 746 808 2,554 424 1,694 854 752 102 404 1,436 581 132 90 1 Explanation of regions: D – A – CH: Germany, Austria, Switzerland Western Europe: France, UK, Benelux (Netherlands, Belgium) Northern, Central and Eastern Europe: Sweden, Russia, Czech Republic (incl. Slovakia), Ukraine North America: USA Asia / Pacific: Australia, New Zealand, South Korea (excluding Japan, as minority holding) 2 Employment by age group cannot be disclosed for legal reasons. Differences in the total values result from different data sources and legal bases in the respective countries. South America, Italy, Spain: Argentina / Chile, Brazil, Italy, Spain 99
N O T E S G R I I N D I C AT O R S I N D E X GRI indicators index In our reporting on corporate responsibility, we also refer to the internationally recognised guidelines of the Global Reporting Initiative (GRI, Sustainable Reporting Standards 2016) and thus make our performance transparent. The following table shows where information on the indicators can be found in the previous chapters. Standard disclosures Environmental metrics Index 301-1 302-1 302-3 303-1 304-1 304-2 304-3 305-1 305-2 306-2 Materials used by weight or volume Energy consumption within the organisation Energy intensity Water withdrawal by source Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside pro tected areas Significant impacts of activities, products, and services on biodiversity Habitats protected or restored Direct (Scope 1) GHG emissions Energy indirect (Scope 2) GHG emissions Waste by type and disposal method Social metrics Index 405-1 413-1 417-1 Diversity of governance bodies and employees Operations with local community engage ment, impact assessments, and development programme Requirements for product and service information and labelling Page 97 – 98 96 31 97 26 – 33 20 – 25 20 – 25 97 97 98 Page 90 22 – 25, 30 – 33 8 – 13 The Global Reporting Initiative was founded in 1997 by the Coalition of Environmentally Responsible Economies (Ceres) and the United Nations Environmental Programme (UNEP). Detailed information can be found online at www.globalreporting.org Page Title 1, 8 – 13 1, U3 93 1 51 1 99 99 99 99 20 – 25 20 – 25, U3 90, 102, 103 3 – 4 2 – 5, 101 – 103 3 – 4, 39 U3 U3 U3 U3 1 – 2, U3 100 80, 102 – 103 Page Inside cover page, 49 Inside cover page, 30 47 – 57 Index 102-1 102-2 102-3 102-4 102-5 102-6 102-7 102-8 102-8-a 102-8-b 102-8-c 102-9 102-10 102-11 102-14 102-16 102-18 102-50 102-51 102-52 102-53 102-54 102-55 102-56 Name of the organisation Activities, brands, products, and services Location of headquarters Location of operations Ownership and legal form Markets served Scale of the organisation Information on employees and other workers Total number of employees as either head count or fulltime equivalent (FTE), with the chosen approach stated and applied consistently Total number of employees by contract type and fulltime and parttime status of employees based on the definitions under the national laws of the country where they are based Total number of employees by employment (fulltime and parttime) and genderdivided Supply chains Significant changes to the organisation and its supply chain Precautionary Principle or approach Statement from senior decisionmaker Values, principles, standards, and norms of behaviour Governance structure Reporting period Date of most recent report Reporting cycle Contact point for questions regarding the report Claims of reporting GRI content index External assurance Economic metrics Direct economic value generated and distributed Infrastructure investments and services supported Significant indirect economic impacts Index 201-1 203-1 203-2 100
N O T E S S U S TA I N A B L E D E V E L O P M E N T G O A L S Our contribution to the Sustainable Development Goals We have aligned the actions we have taken so far with the Sustainable Development Goals published in 2015 by the United Nations. This enhances transparency and traceability as well as safeguarding nature and the needs of our cultivation partners. The Sustainable Development Goals were compiled by the United Nations and aim to transform the world by 2030. They include 17 global goals with 169 subsidiary targets. – Compliance with social criteria along our raw material supply chains (e. g. annual negotiations on costbased prices, supplements for organic cultivation, guaranteed minimum income pursuant to the UEBT standard) – Planning security for smallholders through longterm contracts – Financial support for individual social projects within the raw material supply chains – Preserving rural life by supporting small enterprises – Promotion of site and soil quality with raw materials from organic farming, biodynamic agriculture and controlled wild collection – Use of non-GMO seeds only – Social projects with raw material suppliers – Guaranteeing food security in cultivation and collection regions pursuant to the UEBT standard – Promoting anthroposophic medicine and therapeutic diversity as well as medicine free from antibiotics – Variety of programmes for employ ees to strengthen resilience – Educating customers on health through publications and events – Ensuring health and safety along our raw material supply chains pursuant to the UEBT standard – Social projects to support education in our raw material supply chains – Various programmes for employees and trainees/students – Cooperations with universities and other institutions of higher education – Voluntary Ecological Year – Ensuring equality between men and women along our raw material supply chains pursuant to the UEBT standard – Award of contracts to Haus Lindenhof for the employment of people with disabilities – Promotion of equal rights among both our suppliers and our employees – High proportion of women and women in management positions – Products do not contain micro plastics and other persistent or waterpolluting substances – Production: investing greatly in effective and efficient water management and highly efficient equipment in production facilities – Avoidance of contributing pesti cides to ground water by making maximum possible use of raw materials from organic cultivation – Social projects such as building a well in Uganda – In regions with water scarcity, seeking options for resource conserving irrigation in cultivation – Access to clean drinking water for all involved along our raw material supply chains pursuant to the UEBT standard – Effective and efficient energy management in production (e. g. switch to LED) – Manufacturing our products using renewable energy and own photovoltaic system – Construction of new buildings according to sustainable standard (e. g. new build in Arlesheim) – Sustainable planning of the logis tics centre in Schwäbisch Gmünd – Ensuring compliance with inter- nationally recognised social and environmental standards in the supply chain pursuant to the UEBT standard – Progressively increasing financial resilience and future viability of the company – Weleda as a “place of human development based on shared tasks” with wide range of meas ures and offers for employees – Guided by our vision and mission for the benefit of people and nature – Supporting growers in establishing local infrastructure – Promoting the independence of our suppliers – Startup and failure financing for individual suppliers – Investment in own infrastructure – Ensuring compliance with ILO standards through supply chain management system pursuant to the UEBT standard – The “Diversity wins! Prospects for people who have experienced displacement” programme and the active pro mo tion of diversity – Actively working with the commu nities in which Weleda is based – Promotion of rural living within the supply chain – Sustainable products for the good of people, in harmony with nature – Natrue certification of all natural and organic cosmetics products manufactured in Switzerland and Germany – Increasing the proportion of recyclate in natural cosmetics packaging – Effective and efficient use of resources and reduction of waste in production, deployment of environmental management sys tems at main sites – Circular economy in our own bio dynamic medicinal plant cultivation – Our biodynamic garden as an example of resistant, sustainable agriculture and closed material cycles – Transparency regarding company emissions and measures for reduction – The prudent use of natural resources along raw material supply chains in cultivation and wild collection pursuant to the UEBT standard – Through our supply partnerships, biodynamic agriculture and UEBT certification, we support the in crease of soil organics, which bind carbon directly from the atmos phere. – Products without microplastics and other persistent or water polluting substances – Organic or biodynamic farming or certified wild collection account for > 80 per cent of raw materials – Active efforts to improve both soil fertility and biodiversity in projects with farmers – Support for seed initiatives; no use of GMO seeds – Active and political engagement on the topic of palm oil – Respectful dealings through the supply chain management system pursuant to the UEBT standard – Global governance guidelines – As an anthroposophically inspired company, supporting and promoting the guiding principles as a contri bution to a fair, diverse and peace ful world – Active member of numerous health and sustainability initia tives and associations – Global cooperations with manu facturers and farmers 101
N O T E S C E R T I F I C AT I O N S Certifications of Weleda countries Weleda actively pursues environmental management and works to improve social and working conditions. Independent experts have confirmed compliance with internationally recognised standards by awarding the following certifications. Switzerland Germany Italy 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 Environ mental Management Weleda AG Möhlerstr. 3 – 5 73525 Schwäbisch Gmünd Germany Tel. +49 7171 91 90 www.weleda.de Certified in accordance with ISO 14001 and EMAS / Verified Environ mental Management, D13500032, certified in accordance with audit beruf undfamilie Weleda Italia S. r. l. Via Albani 65 20148 Milan Italy Tel. +39 02 487 70 51 www.weleda.it Certified in accordance with SA 8000 (Social Accountability Standard) France Since 2018 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 UEBT certification for our management system for raw material sourcing of natural raw materials Weleda was among the first two brands worldwide to receive the new UEBT certifi- cation “Sourcing with respect” in 2018. This label guarantees that biodiversity is pre served and used sustainably in the culti vation, harvesting and further processing of the plants. Weleda is also committed to treating all supply chain participants fairly and paying fair prices. 102
Ethical sourcing commitments Since 2012 we have been a member of the Union for Ethical BioTrade (UEBT). The nonprofit association promotes the respectful procurement of natural raw materials. N O T E S U E B T C E R T I F I C AT I O N The ambitious standard for ethical procurement promotes sus tainable economic growth, local development and the protection and sustainable use of biodiversity. In accordance with our vision “Creating a world in which the health and beauty of human beings and nature continually un fold” and our mission “Weleda sustainably develops its business in harmony with nature and the human being”, we have implemented the UEBT standard as a sustainability management system along all our natural raw material supply chains. In 2018, UEBT offered a certification programme for ethical pro curement (ESS). UEBT certifies procurement systems of companies that respect people and biodiversity. As a UEBT member, we are committed to innovation and procure ment practices that contribute to a world in which people and bio diversity can thrive. With this in mind, and as part of our sustaina bility strategy, we have decided to go one step further in our com mitment and introduce the certification of our Ethical Sourcing System (ESS) for all our natural raw materials used in our natural and organic cosmetics products. A subsequent risk analysis will help us to identify the need for lasting improvements and to determine what measures must be taken. As a next step, and as part of the certification programme, we are committed to taking further action along defined, socalled priori tised supply chains. This will allow us to reach even more actors and areas for cultivation and wild collection to improve ethical sourcing wherever necessary. We achieved the first certification in 2018 and had a second successful audit in June 2019. Certification scope in figures 2019 We had 657 approved supply chains, which means that 100 per cent of the raw materials used were evaluated. In 2019 we purchased 279 natural raw materials from 150 sup pliers for natural and organic cosmetics. 50 of our supply chains are defined as prioritised for verification. Verification means that we confirm the information we have received from our suppliers for evaluation through onsite audits. Of these 50 prioritised supply chains, 34 audits were carried out in 2019, with all other audits to be carried out in 2020. Reasons for delays in audits are mainly of a timerelated nature. 2020 target Verification of all remaining prioritised supply chains Followup of supplier measures and completion of verification audits The corrective measures from last year’s audit are mainly adjust ments in our process descriptions and internal training. These measures will be implemented in 2020. More internal training on communication 103
N O T E S U E B T C E R T I F I C AT I O N Observation Not all audits were carried out in 2019 as planned. There were diffi culties with time planning (availability of auditors, suppliers, oper ators on site), coordination, language, but also with the different structures of the supply chains which require a more precise speci fication of the UEBT standard and its application. Internal training measures with all relevant departments were necessary to better explain the requirements of the certification and their importance in daytoday work. This training was con ducted for R & D, marketing and project management and may be repeated regularly. The current certification is valid until June 2021. What are the guiding principles of the UEBT standard? Biodiversity conservation Sustainable use of biodiversity Sharing of benefits between companies and communities through the use of biodiversity Traceability to identify the origins of the natural ingredients Compliance with national and international regulations Adequate working conditions for employees and ensuring local food security No “land grabbing”, instead measures to prevent illegal use What is the UEBT? The Union for Ethical BioTrade (UEBT) provides a globally recog nised standard for ethical trade in natural resources. The nonprofit organisation is an offshoot of the UN Convention on Biological Diversity (CBD) and the UN Conference on Trade and Development (UNCTAD). 104
N O T E S C O R P O R AT E G O V E R N A N C E Transparent and solid business management Weleda places great value on a transparent management structure and an open communication culture. The rules for good corporate governance are laid down in the company’s articles of association and organisational regulations. Control and risk management The primary objective of risk management is to ensure the long term survival of the company – as a basis for further development. Risk reporting to the Audit Committee and the Board of Directors takes place halfyearly. The material content and elements of Weleda’s Groupwide risk policy have been documented and de scribed in a comprehensive control and risk management system (KuRS). The Audit Committee is a fundamental element of the manage ment structure, with responsibility for compliance with Weleda’s corporate governance. Audit Committee Members Two members of the Audit Committee, Dr Jürg Galliker (Chairman) and Monique Bourquin, are also members of the Board of Directors. With Dr Patrick Scarpelli, partner at cctm AG in Basel, an external specialist is also represented. Tasks The function of the Audit Committee is to provide effective sup port to the Board of Directors in monitoring corporate governance. This includes: – monitoring the integrity of financial reporting and the Group’s internal control system as well as monitoring compliance with legal and internal regulations – monitoring the independence and performance of the independ ent external auditors (auditors and Group auditors) and the inter nal auditing department 105
N O T E S A D D R E S S E S Weleda worldwide Benelux Weleda Benelux SE Platinastraat 161 2718 SR Zoetermeer Netherlands Tel. +31 79 363 13 13 www.weleda.nl www.weleda.be Brazil Weleda do Brasil Laboratório e Farmácia Ltda. Rua Brigadeiro Henrique Fontenelle 33 Parque São Domingos CEP 05125000 São Paulo Brazil Tel. +55 11 3648 8388 www.weleda.com.br Chile Weleda Chile SpA Evaristo Lillo 78, Of. 41 Las Condes Santiago de Chile Chile Tel. +56 02 240 2700 www.weleda.cl Czech Republic Weleda spol. s r. o. Lidickà 336 / 28 150 00 Praha 5 Czech Republic Tel. +420 257 315 888 www.weleda.cz France Weleda France S. A. 9, rue Eugène Jung CS 20152 68331 Huningue Cedex France Tel. +33 38 969 68 00 www.weleda.fr Spain Weleda S. A. U. Calle Manuel Tovar 1 28034 Madrid Spain Tel. +34 91 358 03 58 www.weleda.es Sweden Weleda AB Ludvigsbergsgatan 20 11823 Stockholm Sweden Tel. +46 85 515 18 00 www.weleda.se Ukraine Weleda Ukraine LLC Kyrilivska str. 6 04080 Kiev Ukraine Tel. +380 44 333 7108 www.weleda.ua United Kingdom Weleda UK Ltd Heanor Road Ilkeston Derbyshire DE7 8DR United Kingdom Tel. +44 11 5944 8222 www.weleda.co.uk USA Weleda North America (Weleda Inc.) 1 Bridge Street Suite 42 Irvington, NY 10533 USA Tel. +1 800 241 1030 www.usa.weleda.com Italy Weleda Italia S. r. l. Via Albani 65 20148 Milano Italy Tel. +39 02 487 70 51 www.weleda.it Japan Weleda Japan Co., Ltd Ebisu IS building 4 F 1– 13 – 6 Ebisu, Shibuya-ku Tokyo 150-0013 Japan Tel. +81 3 5447 3890 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 Russia Weleda East LLC Bolshaya Polyanka 7/10 str.3 119180 Moscow Russia Tel. +7 495 545 4285 www.weleda.ru Slovakia Weleda spol. s r. o. organizačná zložka (branch of Weleda Czech Republic) Dúbravčická 1/ 3600 84102 Bratislava – Dúbravka Slovak Republic Tel. +421 905 815 829 www.weleda.sk South Korea Weleda Korea Ltd. KJ Tower (14th floor) Bongeunsa-Ro 207, Gangnam-gu Seoul 06109 Republic of Korea Tel. +82 70 7700 7472 www.weleda.kr Switzerland Weleda AG Dychweg 14 4144 Arlesheim Switzerland Tel. +41 61 705 21 21 www.weleda.ch www.weleda.com Weleda Trademark AG Dychweg 14 4144 Arlesheim Switzerland Tel. +41 61 701 16 92 Germany Weleda AG Möhlerstr. 3 – 5 73525 Schwäbisch Gmünd Germany Tel. +49 7171 91 90 www.weleda.de Weleda Services GmbH Möhlerstr. 3 – 5 73525 Schwäbisch Gmünd Germany Tel. +49 7171 91 90 cityspa.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 16 No. 2 Daydream Street (Access via Daydream Street) Warriewood 2102 Australia Tel. +61 2 9997 5171 www.weleda.com.au Austria Weleda Ges. m. b. H & Co. KG Hosnedlgasse 27 1220 Wien Austria Tel. +43 1256 60 60 www.weleda.at 106
P U B L I C A T I O N D E T A I L S The Annual and Sustaina bility Report 2019 of the Weleda Group and Weleda AG is available in English and German. The German version is binding. Weleda AG produces its Annual and Sustainability Report on a yearly basis. The last report produced was the Annual and Sustainabil ity Report 2018 of the Weleda Group and Weleda AG. Date of publication May 11th 2020 Issued by Weleda AG Dychweg 14 4144 Arlesheim Switzerland www.weleda.com Editors Michael Brenner Martin Cadosch Anette Engel Birgit Frank Andrea Freund Charlotte Gollnick Florian Gürtler Dr. Isabella Heidinger Tobias Jakob Karlis Kalns Marcel Locher Susi Lotz David Oechsle (project management) Annette Piperidis Bas Schneiders Stefan Siemer Theo Stepp (editorial responsibility) Sonja M. Thiele (picture editor) Proofreading Claudia Marolf, Bachenbülach Photos Cover: Getty Images / Candice Estep Goodprints: Andree Kaiser Elly Lucas Stefan Siemer Björn Vaughn – Borneo Productions international John B. Weller Portraits: Valeska Achenbach Ingrid Hertfelder Michael Peuckert Board of Directors and Executive Board: Andree Kaiser Report: Fotolia / emer Harmut Hientzsch iStock / TonyFeder Jugendkulturinitiative Esperanza Michelgroup Sung Woo Nam Sekem Farm Egypt Tuntable Creek Public School Weleda AG Olaf Zimmermann Illustration Michael Paukner Design Anzinger und Rasp, Munich Printed by Druckerei Lokay e. K. Königsberger Str. 3 64354 Reinheim Germany Paper Nautilus Classic, 100 % recycled from waste paper Der Blaue Engel certification RAL-UZ 195 EU Ecolabel Contact for questions regarding the report Theo Stepp Corporate Communications Tel.: +49 7171 919 178 email@example.com Art. no. 00085519 (CH) Art. no. 50302200 (D)