Annual Report 2013

Adhesive Technologies

Sales
in million euros
2009
6,224
2010
7,306
2011
7,746
2012
8,256
2013
8,117

 +2.7%
organic sales growth.

Sales and profits

The Adhesive Technologies business unit achieved solid organic sales growthorganic sales growth
Growth in revenues after adjusting for effects arising from acquisitions, divestments and foreign exchange differences – i.e. “top line” growth generated from within.
in the reporting period, and an excellent increase in adjusted return on sales, thus continuing its profitable growth trend of the previous years. Organically – i.e. adjusted for currency exchange and acquisitions/divestments – sales grew by 2.7 percent overall, slightly more than the market as a whole. This was achieved through increases in both price and volume. Adjusted return on sales increased by 1.8 percentage points and reached 16.9 percent for the full year for the first time. Our active portfolio management, leverage of scale economies, strong position in emerging markets, and strict cost management all contributed to this increase.

In the following, we comment on our organic sales performance in the regions.

The sales increase was driven mainly by the emerging markets, in which we recorded strong growth. The Latin America region performed particularly well with double-digit growth. Eastern Europe also recorded a strong rise in sales. The Asia-Pacific region (excluding Japan) showed solid performance. Revenue development in the Africa/Middle East region was positive.

In the mature markets, organic sales growthorganic sales growth
Growth in revenues after adjusting for effects arising from acquisitions, divestments and foreign exchange differences – i.e. “top line” growth generated from within.
was positive. North America posted a positive performance year on year. Sales were stable in Western Europe despite the difficult economic environment. However, sales in the mature markets in Asia fell short of the previous year’s level.

Operating profit (EBIT) again reached a new high in 2013, increasing to 1,271 million euros. Adjusted operating profit increased to 1,370 million euros, its highest ever level. Consistent development of our portfolio and ongoing measures to reduce costs and enhance production and supply chainsupply chain
Encompasses purchasing, production, storage, transport, customer services, requirements planning, production scheduling and supply chain management.
efficiency enabled us to further increase our gross margingross margin
Indicates the percentage by which a company’s sales exceed cost of sales, i.e. the ratio of gross profit to sales.
. Prices for direct materials remained at the level of the previous year. We again reduced net working capitalnet working capital
Inventories plus payments on account, receivables from suppliers and trade accounts receivable, less trade accounts payable, liabilities to customers and current sales provisions.
as a percentage of sales versus the previous year and, at 10.0 percent, achieved our lowest year-end figure to date. Return on capital employed (ROCE)Return on capital employed (ROCE)
Return on Capital Employed (ROCE)
improved by 2.3 percentage points to 18.8 percent. Economic value added (EVA®)Economic value added (EVA®)
The EVA concept reflects the net wealth generated by a company over a certain period. A company achieves positive EVA when the operating result exceeds the weighted average cost of capital. The WACC corresponds to the yield on capital employed expected by the capital market. EVA is a registered trademark of Stern Stewart & Co.
reached 562 million euros, an increase of 199 million euros compared to the prior year.