Annual Report 2024
WÜRTH FINANCE GROUP
GOING FARTHER TOGETHER
KEY EVENTS IN 2024
■ Defied a difficult market environment: After three years of exceptionally high
growth, the Würth Group suffered a drop in sales of 0.9%. It acquired
90,000 new customers, while the number of orders rose by 5% in the second
half of the year. That represents a significantly better performance than that of
its competitors (according to preliminary figures).
■ Surpassed the 100 million mark: Thanks to record interest income on cash
investments, the Würth Finance Group generated a pre-tax profit of
EUR 106.4 million (adjusted figures) and made a significant contribution to
the Würth Group’s consolidated profit.
■ Very successful refinancing of the 2018–2025 bond in a receptive capital
market environment: At the end of October, Würth Finance International B.V.
issued a bond for EUR 500 million with a term of just under seven years. It
was five times oversubscribed and was placed with an attractive credit
spread.
■ Successful performance for the year: Würth Financial Services AG posted
revenue growth of almost 7% compared to the previous year and concluded
financial year 2024 with a record operating result.
■ Technological progress: Insurance companies and insurance brokers must
extend their expertise and modernise their own infrastructure. Würth Financial
Services AG laid the foundations in 2024 for utilising future potential.
THE WÜRTH FINANCE GROUP
AT A GLANCE
The Würth Finance Group is the financial competence centre for the
Würth Group. It employs 127 staff (FTEs) at six locations in the two
divisions Inhouse Banking and External Financial Services.
WÜRTH FINANCE GROUP
Core
RISK MANAGEMENT
competence
Core
Group financing, liquidity
Insurance brokerage for SMEs,
business
assurance and payment flow
national and international
optimisation for the Würth
companies
Group and its subsidiaries
DIVISION
DIVISION EXTERNAL
INHOUSE BANKING
FINANCIAL SERVICES
The Inhouse Banking division works with
The External Financial Services division operates
over 400 Group companies in more than
as Würth Financial Services AG. Around 10,000
85 countries. The legal entities of the divi-
clients in Switzerland are looked after from the
sion are Würth Finance International B.V.
five offices in Rorschach (head office), Zurich,
(NL/CH) and Würth Invest AG.
Lugano, Arlesheim and Chur.
KEY FIGURES
OF THE WÜRTH FINANCE GROUP
in TEUR
2020
2021
2022
2023
2024
Key figures from the consolidated income statement
Net interest income
13,789
14,170
29,576
50,844
63,897
Income from factoring activities
16,275
16,234
17, 733
13,573
13,613
Income from commission and service fee activities
37,668
43,725
48,348
49,564
49,505
Income from trading activities and financial instruments
12,376
14,789
11,289
20,376
23,540
Other ordinary income
1,709
797
653
592
910
Expected credit loss (expenses) /recovery
–7,886
6,846
–4,615
4,273
1,742
Total operating income
73,931
96,561
102,984
139,222
153,207
Total operating expenses
–31,519
–34,031
–36,656
–41,021
–45,027
Profit before taxes
42,412
62,530
66,328
98,201
108,180
Operating income adjustments Inhouse Banking
Hedge accounting effect management accounting
1,492
–548
–619
–203
0
Impairment for credit loss
8,558
–6,450
4,615
–4,273
–1,742
Total operating income (adjusted)
83,981
89,563
106,980
134,747
151,465
Profit before taxes (adjusted)
52,462
55,532
70,324
93,726
106,438
Total assets/equity ratio
Number of employees (FTEs)
in million EUR
in %
Employees
5,000
20
200
4,500
18
180
4,000
16
160
3,500
14
140
3,000
12
120
2,500
10
100
2,000
8
80
1,500
6
60
1,000
4
40
500
2
20
0
0
0
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Total assets
Equity ratio (right-hand scale)
Cost-income ratio
Return on equity before tax
in %
in %
50
25
40
20
30
15
20
10
10
5
0
0
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
Cost-income ratio
Return on equity before tax
Cost-income ratio adjusted
Return on equity before tax adjusted
CONTENTS
02 Würth Finance Group Insights – Going farther together
20 Report of the Board of Directors
22 Report of the Management
24 Inhouse Banking Division
32 External Financial Services Division
36 Risk Management and Control
44 Legal Structure of the Würth Group
45 Executive Bodies of the Würth Finance Group
46 Information for Investors
47 Excerpt from the Financial Statements 2024
Annual Report 2024 Würth Finance Group
Würth Finance International B.V.
REPORT OF THE BOARD OF DIRECTORS
Dear readers
During financial year 2024, the Board of Directors of Würth
As expected, the Würth Group’s market environment re-
Finance International B.V. performed its duties in accordance
mained virtually unchanged during financial year 2024, with
with the law and the company’s articles of association, moni-
economic growth in Europe still subdued. In particular, lower
tored the performance of the company and advised the
demand from industrial manufacturing customers and the
Management.
continued decline in residential construction activity had a
negative impact on sales performance. Fortunately, demand
Four meetings were held during which the Management in-
for assembly and fastening materials from crafts customers
formed the Board of Directors verbally and in writing about
remained considerably more stable. Additionally, the Chemi-
the general situation of the company, the course of business
cals segment performed especially well, recording a strong
and the principal issues relating to its business policy. This
rise in sales. According to preliminary figures, the Würth
reporting also included the subsidiaries Würth Financial
Group recorded an overall decline in sales of 0.9% to
Services AG and Würth Invest AG. The information required
around EUR 20,200 million. The Würth Group thus outper-
as the basis for decision-making was provided in timely fash-
formed the market as a whole, emphasising the advantages
ion and enabled a detailed insight into business operations.
of the diversified business model and a management system
The Board of Directors was also informed promptly of all
that enables the Group to adapt swiftly and appropriately to
potential opportunities and risks. In this context, the Board of
individual market developments. However, the Group’s ca-
Directors advised the Management on strategic measures
pacity utilisation was no longer optimal. This is reflected in
and issues relating to the company’s future. The cooperation
the operating result, which declined by just under 40% to
between the Management and the Board of Directors was
EUR 900 million, according to the preliminary financial state-
highly constructive and fully complied with the principles of
ments. As this development unfolded, careful attention was
good corporate governance.
paid to promptly adjusting purchasing behaviour and inven-
tory levels in line with the lower business volumes, as well as
A focal point of the work of the Board of Directors was
to limiting the realisation of growth-oriented investment pro-
monitoring the effectiveness of risk management, particularly
jects. This resulted in a stable net indebtedness trend, with
compliance with the regulatory limits set by the Board of
the financial position remaining very solid.
Directors for measuring, managing and monitoring market,
credit and liquidity risk in relation to trading activities and
In October, Würth Finance International B.V. successfully is-
the company as a whole.
sued a EUR 500 million bond maturing in August 2031, in its
capacity as the competence centre for the Würth Group’s fi-
In accordance with the EU regulations and Dutch laws on
nancing and liquidity management. This enabled the bond
the mandatory rotation of auditors applicable to Würth
maturing in May 2025 to be refinanced ahead of schedule.
Finance International B.V., the Board of Directors put the
contract for the audit of the Financial Statements up for
Buoyed by a huge improvement in net interest income due to
tender and, following careful evaluation, resolved on the
higher interest rates and successful sales activities in insur-
appointment of BDO as the new auditor. The shareholders’
ance brokerage, the company’s adjusted consolidated pre-
meeting approved the appointment of BDO at its meeting on
tax profit rose to a record EUR 106.4 million in financial
24 April 2024.
year 2024.
BDO and KPMG subsequently reported to the Board of
The Consolidated Financial Statements and the Separate
Directors meetings in connection with risk management on a
Financial Statements of Würth Finance International B.V. for
quarterly basis on selected audit areas, which had been
financial year 2024 were prepared in accordance with Inter-
discussed and resolved on in advance by the Board of
national Financial Reporting Standards (IFRS) and Part 9 of
Directors. There was a particular emphasis on the reliability
Book 2 of the Dutch Civil Code. BDO audited the annual ac-
of the internal control systems used by the company.
counts and issued an unqualified audit opinion. The Financial
20
Board of Directors (as at 31 December 2024)
from left to right: Christoph Raithelhuber | Dieter Gräter (Vice President Finance, Würth-Verwaltungsgesellschaft mbH) | Joachim Kaltmaier
(former Member of the Central Management Board of the Würth Group) | Prof. Dr. h. c. mult. Reinhold Würth (Chairman of the Supervisory
Board of the Würth Group) | Ralf Schaich (Member of the Central Management Board of the Würth Group and Chairman of the Board of
Directors of Würth Finance International B.V.) | Isabelle Damen (CFO and Board Member of the Teijin Aramid Group, member of the Super-
visory Board of Pro Rail & BN International) | Wolfgang Kirsch (former Chief Executive Officer of DZ Bank AG, Chairman of the Supervisory
Board of Fresenius SE & Co. KGaA) | Mag. Michel Haller (Chief Executive Officer of Hypo Vorarlberg Bank AG)
Statements and the audit report were examined by the
As part of its legal obligations to increase gender diversity
Board of Directors and discussed in detail with both the
in management, Würth Finance International B.V. remains
Management and BDO. Following the final result of the
committed to increasing the proportion of women on the
audit, the Board of Directors raised no objections, agreed
Board of Directors and in the Management level when
with the audit report and approved the Financial Statements.
appointing new members. Various specific measures are in
place to achieve this goal (see page 42).
The shareholders’ meeting on 24 April 2024 elected
Ms Isabelle Damen, CFO of Teijin Aramid, to the Board of
On behalf of the Board of Directors, I would like to thank
Directors. I am delighted that Würth Finance International
the Management and all the staff for their hard work, and
B.V.’s Management team is now benefiting from the super-
congratulate them on the very good operating result they
vision and support of Ms Damen, who has many years’
achieved in the past financial year. I would also like to thank
successful corporate management experience at Dutch and
the Würth Finance Group’s clients and business partners for
international firms.
the trust they have placed in us and for their loyalty to the
company and the Würth Group as a whole.
Würth Finance International B.V. also reached an agreement
with Mr Björn van Odijk on the termination of his role as
Managing Director of Würth Finance International B.V. The
shareholders’ meeting approved his resignation with effect
from 8 August 2024 and granted Mr van Odijk a full and
final discharge. On behalf of the Board of Directors and all
Ralf Schaich
Chairman of the Board of Directors of Würth Finance International B.V.
employees, I would like to thank Mr van Odijk for his long-
standing and fruitful contribution as Managing Director of
Würth Finance International B.V. and wish him all the best
for the future.
21
Annual Report 2024 Würth Finance Group
Würth Finance Group
REPORT OF THE MANAGEMENT
General economic conditions
ics business, along with a boom in photovoltaic installations,
The modest expectations for economic growth in Europe
the Würth Group, like other companies, has been affected
and the United States in 2024 were more or less confirmed,
by a cyclical decline in sales since the fourth quarter of
without any significant improvement in momentum over the
2023. Although sentiment in the construction industry im-
course of the year. The lack of any upturn in demand in do-
proved somewhat over the course of the year, and demand
mestic markets and in key export markets in many manufac-
for fastening and assembly materials in the traditional crafts-
turing sectors (the automotive industry, mechanical engineer-
manship also remained stable, the decline in sales amounted
ing, housing construction) forced companies affected,
to 3.3% (after adjustment for acquisition effects). This result-
particularly in Europe, to adjust capacity and to implement
ed in a decline in the operating result of almost 40%, al-
cost saving measures, short-time working and redundancies.
though operating cash flow was down significantly less
The overall geopolitical environment – with a further escala-
thanks to the prompt adjustment of purchasing decisions and
tion of Russia’s war in Ukraine and the military conflicts and
inventories in line with the reduced volume of business. Net
upheavals in the Middle East – hardly improved, and that
indebtedness also increased only moderately over the year
was not conducive to growth-oriented capital expenditure
despite the cash outflow from the acquisition of shares in the
decisions on the part of the private sector. Moreover,
TIM Group initiated in financial year 2023. With liquidity
Donald Trump’s economic and trade policy programme
held centrally by the Würth Finance Group totalling around
along with foreseeable shifts in government in Germany
EUR 1,400 million and an unutilised credit facility of
and France added further to the prevailing uncertainty to-
EUR 500 million that is firmly committed until 2029, the
wards the end of the year.
Würth Group has comfortable liquidity reserves available.
Fortunately, the banking and insurance system in Europe is
Würth Finance Group
well equipped to deal with any shocks. The latest report
Like the commercial banks, the Würth Finance Group’s
from the European Central Bank (ECB), for instance, affirms
Inhouse Banking division also benefited from the change in
that the banks it supervises have a sound capital and liquidi-
interest rates, with record income from the investment of
ty position and are highly resilient with respect to potential
liquidity on the money market. The inverted yield curve made
risks. The banks are very profitable as a result of the change
it possible to refinance the 2018-2025 bond maturing in
in monetary policy from a low interest rate environment,
May 2025 early by issuing a EUR 500 million bond in
which has led to sustained gains in net interest income. The
autumn, without impacting net interest income negatively. On
results of the 2024 insurance stress test conducted by the
the other hand, the Financial Statements reflect the contrac-
European Insurance and Occupational Pensions Authority
tion in the Würth Group’s core business, in the form of lower
(EIOPA) also showed that insurers in Europe are well capi-
income from payment volumes. Würth Financial Services AG
talised and are able to meet the Solvency II requirements
maintained the steady growth trajectory of its insurance
even in the event of severe shocks. This is necessary, too,
brokerage business and saw commission income increase
given that the number of insolvencies across Europe has
by almost 7%.
risen to its highest level in 10 years and that room for im-
provement clearly still exists in the financial system’s re-
At EUR 151.5 million, the Würth Finance Group’s adjusted
silience with regard to cyber attacks.
income rose by a further EUR 16.7 million compared with
the previous year’s already high figure. This increase was
Würth Group
primarily due to the above-mentioned improvement in net
Following a period of around three years with high single-
interest income in the Inhouse Banking division. Operating
digit or significant double-digit organic sales growth after
expenses rose by 9.8%, from EUR 41.0 million to EUR 45.0
the Covid-19 pandemic, driven by solid demand from the
million. Around 75% of this rise was attributable to higher
construction sector and in solutions provided by its electron-
personnel expenses due to a slight rise in average personnel
Responsibility Statement
In accordance with the EU Transparency Directive and the
liabilities, financial position and profit or loss of the Group,
Dutch Financial Supervision Act (Wet op het Financieel
and that the Management report includes a fair review of
Toezicht), the Management of the Würth Finance Group
the development and performance during the financial
hereby confirms that, to the best of its knowledge, the
year and of the financial situation of the Group at the
Financial Statements for the financial year ended on
balance sheet date, as well as of the risks associated with
31 December 2024 give a true and fair view of the assets,
its business.
22
Report of the Management
resources and salary increases. As at 31 December 2024,
With its very high equity ratio, its excellent creditworthiness,
the Würth Finance Group had 127 employees (FTEs). With
its business model and the very granular competitive environ-
an adjusted pre-tax profit of EUR 106.4 million, the compa-
ment, the Würth Group is ideally positioned in both econom-
ny achieved a record result (2023: EUR 93.7 million).
ic and strategic terms to emerge stronger even from periods
of stagnation. In the short and medium term, however, the
As good as these figures are, the result is not sustainable
Würth Group will not escape the effects of the gloomy glob-
and will not be repeated at this level. Instead, the interest
al economic climate and will therefore continue its efforts to
rate cuts made by the central banks mean that income
adjust capacities and prevent further erosion of its operating
from cash investments will soon be significantly lower.
profitability.
The sustained success of the Würth Finance Group is based
rather on attractive financial and insurance solutions for
The Management of the Würth Finance Group will adhere to
clients on terms in line with the market. The key to this is
its sustainable strategy. This is oriented towards client needs
having skilled employees, close contact with clients and
and the constant change in the insurance and financial mar-
a consistently high level of process efficiency. In all these
kets. In particular, work will continue in improving cost effi-
respects, significant progress was achieved in financial
ciency in view of ongoing price pressure in the markets for
year 2024.
financial and insurance services. This will be achieved pri-
marily through the further standardisation, automation and
digitalisation of business processes and product solutions,
The Würth Finance Group’s
which also improve the scalability of the business model.
sustained success stems from
With the prospect of a slight economic recovery, the Man-
tailored financial solutions,
agement of the Würth Finance Group expects business vol-
umes to remain stable in the current year. However, because
strong client relationships,
of the repayment of the low-coupon 2018–2025 bond and
the significant decline in interest income on cash investments,
skilled employees and efficient
the operating result is expected to fall by around 30% com-
processes.
pared to the record year 2024.
Thanks
Details on the course of business in the Inhouse Banking
The Management of the Würth Finance Group is very satis-
and External Financial Services divisions follow on
fied with the results achieved in the financial year 2024 and
pages 24 to 35. The Würth Finance Group’s report on risk
would like to thank all employees for their important contri-
management and control can be found on pages 36 to
bution to the success achieved. Thanks also go to our clients
43. The Würth Finance Group does not have its own
and business partners, whose trust in the Würth Finance
audit committee, but is integrated into the Würth Group’s
Group has made our success possible in the first place. We
audit process.
look forward to continuing to work with them in 2025.
Outlook for 2025
Economic researchers point out that the global economy
will remain resilient overall in the coming quarters despite
considerable challenges and the risk of a further escalation
in trade tensions. While a slight reduction in GDP growth
Roman Fust
Adrian Parpan
Managing Director
Managing Director
to between 2.0% and 2.5% is expected for the United
Würth Finance International B.V.
Würth Financial Services AG
States, the Eurozone should experience a gradual recovery
in economic activity, supported by rising household incomes,
a robust labour market and looser financing conditions.
Thanks to the monetary policy measures taken in recent
years, inflation rates in almost half of the advanced econo-
mies have abated and are again in line with central bank
targets. This trend is likely to continue as cost pressures ease
and the monetary policy decisions already made gradually
feed through to consumer prices.
23
Annual Report 2024 Würth Finance Group
Report of the Management
INHOUSE BANKING
Alternative Performance Measures (APMs) comparable IFRS measures. APMs do not have a standard-
ised meaning under IFRS, and therefore may not be compa-
In presenting and discussing the Würth Finance Group’s
rable to similar measures presented by other companies.
financial position, operating results and net profit, Manage-
ment uses certain alternative performance measures not
To provide a better overview of the development of the
defined under IFRS. These alternative performance measures
Inhouse Banking activities and their added value for the
(APMs) should not be viewed in isolation as alternatives to
Würth Group, APM adjustments are made. These adjust-
the equivalent IFRS measures, and should be used as supple-
ments affect the operating income and net profit of the
mentary information in conjunction with the most directly
Inhouse Banking segment, as shown in the table below.
in TEUR
2020
2021
2022
2023
2024
Hedge accounting effect management accounting
1,492
–548
–619
–203
0
Impairment for credit loss
8,558
–6,450
4,615
–4,273
–1,742
• Hedge accounting effect management accounting refers to the effect of the market valuation of interest rate derivatives to
hedge interest rate risk where historically no hedge accounting was applied. As of the implementation of IFRS 9 Hedge
Accounting, new hedge relations will be presented as such. In 2023, the last transaction related to this effect expired.
• Impairment for credit loss refers only to related party loss and therefore does not apply to the consolidated financial
statements of the Würth Group. This position represents the expected credit loss (ECL) on loans and receivables as at
the balance sheet date and until 2021 also the Würth Finance Group’s impairment of the capital relinquishment to
Internationales Bankhaus Bodensee AG. The ECL calculation is probability-weighted applying a combination of probability
of default (PD), exposure at default (EAD) and loss given default (LGD). The LGD is based on the global corporate average
of 60% and the PD is based on the Bloomberg default risk of the Würth Group. The PD decreased to 0.33% as at
31 December 2024 (31 December 2023: 0.45%), thus a reduction in ECL of EUR 1.7 million is recognised in the income
statement.
24
Inhouse Banking Division
2024
APM Hedge accounting effect
Impairment for
Segment
in TEUR
Inhouse Banking management accounting
credit loss
Inhouse Banking
Income distribution
Group Financing
76,098
0
1,742
77,840
Net interest income
61,753
0
0
61,753
Income from factoring activities
13,613
0
0
13,613
Other ordinary income
732
0
0
732
Expected credit loss (expenses) /recovery
0
0
1,742
1,742
Central Settlement
31,705
0
0
31,705
Income from trading activities and
financial instruments
25, 711
0
0
25, 711
Trading
20,449
0
0
20,449
Securities investments
5,262
0
0
5,262
Total income
133,514
0
1,742
135,256
Total expenses
–28,449
0
0
–28,449
Total Inhouse Banking
105,065
0
1,742
106,807
2023
APM Hedge accounting effect
Impairment for
Segment
in TEUR
Inhouse Banking management accounting
credit loss
Inhouse Banking
Income distribution
Group Financing
61,929
1,096
4,273
67,298
Net interest income
47,946
1,096
0
49,042
Income from factoring activities
13,573
0
0
13,573
Other ordinary income
410
0
0
410
Expected credit loss (expenses) /recovery
0
0
4,273
4,273
Central Settlement
33,736
0
0
33,736
Income from trading activities and
–893
financial instruments
22,758
0
21,865
16,071
–893
0
15,178
Trading
6,687
0
0
6,687
Securities investments
Total income
118, 423
203
4,273
122,899
Total expenses
–25,865
0
0
–25,865
Total Inhouse Banking
92,558
203
4,273
97,034
25
Annual Report 2024 Würth Finance Group
Key events
As pleasing as this development is, it should be noted that it
is not sustainable and cannot be maintained in the future. For
Record profit
the second consecutive year, the Würth Group’s inhouse
Würth Finance Group’s Inhouse Banking division ended the fi-
bank benefited from high money market interest rates on the
nancial year 2024 with a record profit. At EUR 105.1 million,
assets side of the balance sheet, while interest expenses for
earnings before tax exceeded EUR 100 million for the first
bond financing remained low on the liabilities side. These
time. This milestone is primarily attributable to net interest
positive effects will come to an end in the near future.
income, which increased by around one-third compared with
the previous year. Similarly, the contribution to earnings from
Würth Group financial priorities
financial market activities (trading and securities investments)
The economic conditions for the Würth Group’s core busi-
again improved year on year, compensating for the slight de-
ness were difficult in most markets. Orders trended down
cline in income components closely correlated to the Würth
for industrial customers and the construction industry in
Group’s core business.
Germany in particular, leading to reduced demand.
The Würth Group’s financial and treasury management prior-
Income distribution
ities in the reporting period were to defend the gross profit
margin, adjust working capital in a timely manner to align
in million EUR
Income from
trading
with the lower level of sales, exercise restraint with regard to
activities and
Central
growth-oriented investment and acquisition projects, and im-
financial
Settlement
instruments
plement cost-cutting initiatives. Most of the measures are
–2.0*
+2.9*
having the desired effect on the Würth Group’s financial po-
25.7
31.7
Other
sition, which has remained very solid. Net debt, for example,
ordinary
increased only moderately during the year despite the signif-
income
0.7
+0.3*
icantly lower gross cash flow.
Income
Successful financing on the capital market
from
13.6
Based on its conservative financial policy and against the
factoring
activities
backdrop of the geopolitical uncertainties, the Würth Group
+0.0*
in autumn 2024 decided to issue a EUR 500 million bond on
the Eurobond market. The purpose of this transaction was to
61.8
Net interest
income
take advantage of the receptive market environment to refi-
+13.9*
nance the bond maturing in May 2025 early. The Würth
Group deliberately pursues a conservative financial policy,
*Change vis-à-vis 2023
which is regularly recognised by Standard & Poor’s. The
agency has awarded the Würth Group an “A” rating twenty-
five years in a row (!).
26
Inhouse Banking Division
Business performance
The decision to issue a bond
paid off: with offers totalling
Intercompany factoring activities
Intra-Group receivables are largely settled via a specially
EUR 2,500 million, the bond
developed factoring mechanism. The relevant transfer
was five times oversubscribed.
prices are subject to market changes and were left un-
changed in the past financial year. As mentioned before,
core business volumes were generally under pressure due to
Since inception, the family-owned company has recognised
lacklustre sales performance and destocking. This was fully
the importance of maintaining transparency with lending
compensated by some individual Group companies with
banks and the capital market regarding its performance, and
increasing sales. Consequently, the income from factoring
has stepped up its efforts in this regard. Following the expiry
activities remained in line with the previous year’s level of
of the ECB’s bond purchase programme, the bond issue in
EUR 13.6 million.
October clearly demonstrated the advantages of this ap-
proach for a successful primary market transaction. The
Central settlement of payments to suppliers
EUR 500 million bond issued by Würth Finance International
On behalf of the Würth Group companies and via its own
B.V. with a maturity of just under seven years was five times
systems, Würth Finance International B.V. pays a large pro-
oversubscribed and was placed with an attractive credit
portion of the merchandise supplier invoices. For many of
spread and a reoffer yield of 3.05%.
these suppliers, Würth Finance International B.V. acts as the
central settlement service provider. Accordingly, this source
Digitalisation measures
of income is mainly tied to the Group companies’ purchasing
As a central component of the Würth Group’s long-term
behaviour and to a lesser extent the volume of new contracts
strategy, Würth Finance International B.V. is leading the
entered into by Würth Finance International B.V. and the
initiative to centralise and harmonise the Group’s treasury
price for the services.
system architecture. This includes the technical infrastructure
for bank connectivity worldwide. Significant strides were
Central Settlement: payment volume/income
made in this area in 2024. Additionally, significant progress
was also made in the extensive project to design the future
in million EUR
in million EUR
9,000
36
treasury management system, thanks to the dedicated efforts
of all specialist areas.
7, 50 0
30
6,000
24
4,500
18
3,000
12
1,500
6
0
0
2020
2021
2022
2023
2024
Payment volume third parties
Contract volume
Income from Central Settlement services (right-hand scale)
27
Annual Report 2024 Würth Finance Group
In the past financial year, the number of payments increased
Thanks to disciplined management of net working capital
by just short of 1% to 544,000. However, the volumes trans-
and a cautious investment approach, the Group companies
acted declined by around 4.5% to EUR 8,400 million. This
maintained a relatively stable financial position despite the
was due to more favourable purchase prices, smaller order
lower gross cash flow. However, net lendings from Würth
items as well as foreign currency effects. Consequently, in-
Finance International B.V. to Group companies increased by
come from the central settlement of payments to suppliers
around EUR 280 million to EUR 1,300 million between the
amounted to EUR 31.7 million, down by 6.0% compared
end of 2023 and the end of 2024.
with the previous year.
As at the reporting date, total assets had grown to a record
Net interest income
high of EUR 4,700 million. Net interest income likewise
Although the central banks in Europe and the US decided to
reached a new record of EUR 61.8 million. This reflects the
cut interest rates for the first time over the course of the year
good positioning of the Würth Group’s inhouse bank in the
due to significantly lower inflation figures, the Würth Group’s
areas of security, return and liquidity according to its own
inhouse bank continued to benefit, as in the previous year,
order of priority.
from the still high money market interest rates. As a result,
interest income from the investment of cash reserves – which
The inhouse bank is well posi-
increased on average from EUR 1,000 million to EUR 1,200
million – rose by around 49.7% from the already high previ-
tioned in the areas of security,
ous year’s level to EUR 36.9 million.
return and liquidity.
Due to the inverted yield curve, it was also possible to invest
the funds from the new bond issue with virtually no negative
impact on net interest income.
Group Financing volume and income from intra-Group lendings
in million EUR
in million EUR
3,200
80
2,800
70
2,400
60
2,000
50
1,600
40
1,200
30
800
20
400
10
0
0
2020
2021
2022
2023
2024
Factoring volume
Net lending as at 31 December
Interest and factoring income (right-hand scale)
28
Inhouse Banking Division
Currency hedging and trading with
Securities investments
financial instruments
During the past financial year, part of the strategic liquidity
The inhouse bank’s forex experts exchange currencies with
reserve was also managed in-house in a securities portfolio.
the Group companies whenever regulatory requirements al-
Following the successive expansion of its size in previous
low and favourable prices can be achieved for the counter-
years based on higher expected bond yields, the amount
parties. In addition, consultations and currency hedging are
invested remained constant in average at EUR 114 million.
carried out as measures to safeguard the gross profit of
Group companies. In the short term, the volumes correlate
Buoyed by the generally good investment year, with rising
with the Group companies’ purchasing behaviour, meaning
stock markets and relatively high EUR interest rates (also
that inventory management cycles and hedging transactions
on bonds from issuers with strong credit ratings), securities
over the year-end ultimo can cause volumes to fluctuate
investments again generated above-average income of
significantly year on year.
EUR 5.3 million (previous year: EUR 6.7 million). This repre-
sents a return of just under 5%.
Trading positions can also lead (within defined ranges) to
uncorrelated earnings contributions. In financial year 2024,
successful hedges against a rise in the Polish zloty during the
acquisition process of the TIM Group was the main reason
for the relatively strong 27.2% increase in trading income to
EUR 20.4 million.
Trading: income development
in million EUR
22
20
18
Securities investments: income development
16
in million EUR
14
8
12
6
10
4
8
2
6
0
4
–2
2
–4
0
–6
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
29
Annual Report 2024 Würth Finance Group
Outlook for 2025
E-payment services
Würth Finance International B.V.’s e-payments team, in col-
laboration with internal stakeholders, has meanwhile rolled
Supported by the central banks’ less restrictive monetary
out the Würth Group’s e-payments solution to more Würth
policy, the global economy is likely to remain relatively re-
companies. Improvements have also been made to enhance
silient over the coming quarters despite facing considerable
the customer experience of the e-payments solution and to
challenges, according to the latest OECD economic outlook.
increase the productivity of the Würth companies with initia-
However, at the time this Annual Report went to press, lead-
tives such as the Würth automatic reconciliation process.
ing business indicators – especially in the Würth Group’s
main markets – pointed to a still challenging competitive
Overall, volumes totalling EUR 64 million were processed
environment without significant growth momentum.
via Würth Finance International B.V.’s systems in financial
year 2024, corresponding to an increase of more than 30%
Amid this environment, the Würth Group is focusing on im-
compared with the previous year. This strong growth is ex-
proving capacity utilisation and striking a balance between
pected to continue over the coming years, as the importance
operating cash flow and growth-oriented investments.
of digital sales keeps rising. The ongoing development of
e-payment services is geared to this trend.
Given the lack of growth impetus in the Würth Group’s core
business, the Management expects profit to decline by
Operating expenses
around 30% in financial year 2025. The repayment of the
The inhouse bank’s operating expenses rose by EUR 2.6 mil-
low-coupon 2018–2025 bond and significantly lower
lion to EUR 28.4 million in the reporting year. Two-thirds of
interest income on cash investments will contribute to this
this increase was attributable to higher personnel expenses,
decline, although the Group companies’ net financing
primarily due to a higher average number of employees
requirements are likely to remain relatively stable.
(69.7 FTE, +4.3% compared with the previous year) and cer-
tain wage increases. With a focus on IT security, automation
and standardisation, IT expenses also remained high.
30
Management Würth Finance International B.V. and Würth Invest AG
from left to right: Daniel Ochsner | Alejandro Muñoz | Philip Guzinski (Managing Director) | Roman Fust (Managing Director) |
Jorre van Schipstal | Patrik Imholz (Würth Invest AG)
INHOUSE BANKING AT A GLANCE
Core business
Cash and securities investments
Securing of strategic freedom to act by managing the cash
■
The Inhouse Banking division of the Würth Finance Group
reserves of the Würth Group
monitors the financial risks incurred by the Würth Group and
Central management of financial investments in the
■
takes the necessary measures to retain its financial stability.
conflicting areas of security, liquidity and return
In close collaboration with the Central Management Board
Providing electronic payment possibilities
and the operational Group companies, the Inhouse Banking
Analysing the business needs and identifying the right
■
division ensures that the necessary liquid funds are available
service providers
to the Würth Group at all times and employs the Group’s
Integrating various electronic payment methods across
■
funds in an optimal manner. The division consists of the legal
sales channels for the branches, e-commerce, m-commerce
entities Würth Finance International B.V. and Würth Invest AG.
and the call centres within the Würth Group
Services
Facts and figures (at 31 December 2024)
Central settlement of payments to suppliers
73 employees (FTEs) at the offices in Den Bosch, the
Service provider for the central settlement of payments to
Netherlands, and Rorschach, Switzerland
■
beneficiaries worldwide
Collection of receivables on behalf of almost 11,500
544,000 payment transactions with a volume of
■
Würth Group suppliers vis-à-vis all Group companies and,
EUR 8,400 million in the year under review
to a certain extent, insurance of default risk
Outstanding capital market funding with a total volume of
Group financing and risk management
EUR 2,700 million
Financing of the Würth Group on the capital market,
■
principally by means of bond issues
Account relationships with over 400 Würth Group companies
Competence centre and interface for banks, investors,
■
financial market regulators, rating agencies and credit
4,590 foreign exchange transactions with 340 Group com-
analysts
panies and a hedging volume totalling EUR 1,760 million
Provision of comprehensive advice and a wide range of
■
treasury products to Group companies
485,000 customer e-payments with a volume increase of
Central management of bank accounts and financial risk
more than 40% compared to the previous year
■
management for the Würth Group
31
Annual Report 2024 Würth Finance Group
Report of the Management
EXTERNAL FINANCIAL SERVICES
A review of 2024 reveals heightening contrasts at a number
A continuing trend is the ever increasing number of serious
of different levels. The front lines between democratically
natural disasters. According to Swiss Re, insurance claims
and autocratically governed nations are hardening and are
worldwide exceeded USD 100,000 million in 2024 for the
a mounting threat to peace around the world. Technological
fifth year in succession, with around USD 10,000 million of
progress through artificial intelligence promises huge growth
these claims registered in Europe, making 2024 the second
potential, while the economies of traditionally strong industri-
most expensive year. In Switzerland, too, storms caused
alised countries are increasingly faced with a tougher world
considerable damage totalling over CHF 160 million. These
in which to operate. Climate change is causing major natural
events are forcing insurers to revise their risk models and
disasters with huge amounts of damage, yet insurance com-
develop sustainable insurance products.
panies are posting glittering business performance figures.
Würth Financial Services AG (WFS) likewise concluded the
Insurers are also confronted with rapid change in terms of
year with growth in revenue and profits, although the Würth
technological developments and innovation. Online plat-
Group as a whole faced a number of challenges.
forms, chatbots and other technological innovations forming
part of the client journey offer opportunities to improve quali-
ty and increase productivity. The challenge of these develop-
Insurance market 2024
ments is to ensure acceptance of the new tools by clients and
employees, to safeguard independence from the big technol-
Insurance remains one of the global growth markets. An im-
ogy providers and to keep under control the risks relating to
portant element in the growth in premiums is inflation-related
liability claims and data protection.
pricing adjustments, which for some years now have been a
feature of annual insurance policy renewals. This trend re-
mains unbroken: in autumn 2024, for example, six of the
seven motor vehicle insurers relevant to Switzerland set
higher premiums for 2025.
32
External Financial Services Division
Trends in the insurance brokerage market
At the operational level, WFS succeeded in further strength-
ening its team of technical specialists. This expansion is of
As intermediaries between clients and insurers, insurance
great importance for the further growth of WFS in terms of
brokers are similarly affected by technological develop-
meeting clients’ requirements in the individual insurance
ments. Not only must insurance brokers introduce ever in-
lines. It is also essential to ensure that sufficient capacity is
creasing levels of automation into their own process environ-
available to support existing and new clients in the future.
ments, they are also subject to a direct dependency on
Various initiatives were also launched in 2024 to increase
insurers and on their digitalisation measures.
the level of automation of operational processes. The focus
here was in particular on building up internal expertise in the
In general, the aim is to meet client expectations in terms of
Microsoft automation and database platforms.
pricing, the scope of cover, quality and service level by using
technology that is tailored to the client. Especially in the
IT remained a significant cost factor in 2024. A key priority
event of a claim, professional support, prompt settlement of
was hardening the systems used to defend against external
the claim and coordination between the client and the insur-
attacks and to provide the best possible protection for client
ance company play a central role and are often more impor-
data. The IT infrastructure also needed to be further modern-
tant for client satisfaction than the amount of their premiums.
ised in order to create a sound basis for future digital pro-
jects. The potential of process automation and generative
In addition to focusing on their range of services and on
artificial intelligence will change the way WFS works, and
technology, last year insurance brokers in Switzerland
the basis for that is a modern infrastructure.
also had to meet new regulatory requirements: the revised
Insurance Oversight Act (IOA), which came into force on
With regard to product innovation, work was done on fur-
1 January 2024, introduces additional requirements for
ther developing the InsurHub platform on TWINT. The range
employees and more comprehensive advisory duties.
of products and the technical capabilities are constantly be-
ing extended, and the number of insurance policies taken out
is rising steadily. The decisive factor for further scaling in this
Focal points in financial year 2024
respect will ultimately be increasing the level of popularity.
The focal points that WFS focused on in 2024 concerned its
core areas: sales, operations and product innovation.
At the level of sales, WFS can look back on a pleasing year.
The branches in Rorschach and Lugano in particular signifi-
cantly exceeded their targets for new production, while the
units in Zurich, Arlesheim and Chur focused more on struc-
tural expansion and retaining existing clients. In 2024, many
companies in the WFS client portfolio took over other com-
panies or were acquired themselves, which led to consider-
able additional work on the advisory side.
33
Annual Report 2024 Würth Finance Group
Successful course of business in 2024
Outlook for 2025
WFS concluded the financial year 2024 with success
WFS is cautiously optimistic for 2025. The unclear economic
despite global uncertainty and economic fluctuations. The
direction that prevails at present and the fact that 2024 was
brokered premium volume increased to CHF 393 million.
a mixed year in many economies have not yet had an
In line with the increase in premium volume, revenue rose
impact on business performance. Nevertheless, it cannot be
by almost 7%.
ruled out that 2025 will bring greater economic challenges.
The primary objective for WFS in 2025 is therefore to
match the results achieved in 2024. Against this backdrop,
Development of premium volume
pending projects will be scrutinised with a critical eye and
capital expenditure decisions in 2025 will be subject to
in million CHF
400
cautious consideration.
350
With this in mind, the main focus in the coming year will be
300
on sales. With the Würth Group’s sales expertise that it has
built up over decades and the tools at its disposal, coupled
250
with optimism, commitment and a desire to perform, WFS
200
is looking ahead to 2025 with confidence despite the
altered environment.
150
100
Thanks to the sales expertise
50
of the Würth Group and the
0
2020
2021
2022
2023
2024
available tools, Würth Financial
Services is looking ahead to
The number of employees remained unchanged compared
to the previous year: the number of sales representatives
2025 with optimism.
rose slightly, while the number of support staff fell owing to
improved efficiency. Productivity rose slightly compared to
the previous year. On the cost side, personnel expenses and
IT expenses increased compared to the previous year, while
administrative expenses remained constant at the previous
year’s level. The operating result improved by 6% in financial
year 2024.
Number of staff (FTEs)
60
50
40
30
20
10
0
2020
2021
2022
2023
2024
34
Management Würth Financial Services AG
from left to right: Hans-Jürg Flury | Adrian Parpan (Managing Director) | Beat Jordan (Managing Director) | Luciano Viotto
EXTERNAL FINANCIAL SERVICES
AT A GLANCE
Core business
Facts and figures (at 31 December 2024)
The External Financial Services division operates under the
Number of corporate clients: around 4,000
legal entity of Würth Financial Services AG, one of the lead-
ing independent providers of pension and insurance services
Premium volume: CHF 393 million
to corporate clients and private persons in Switzerland.
Number of employees: 54 (FTEs)
Experienced consultants and highly qualified specialists
draw up tailor-made solutions and advise clients on the best
Five locations: Rorschach (head office), Zurich, Lugano,
choice of pension and insurance products.
Arlesheim and Chur
Services
Insurance brokerage for corporate and private clients
■
Claims management
■
Pension fund advisory services for corporate clients
■
Insurance solutions for credit card issuers and payment
■
providers
35
Annual Report 2024 Würth Finance Group
Würth Finance Group
RISK MANAGEMENT AND CONTROL
1 Risk culture
The Würth Group actively promotes a strong risk culture,
and the Central Management Board or the responsible per-
Taking risks has always been inherent in any entrepreneurial
sons in the areas of compliance, controlling, information se-
activity. As a globally active company, the Würth Group is
curity, IT security and data protection regularly communicate
constantly exposed to risks that can arise both as a result of
the expectations of the risk culture. Employees are also en-
its own actions or failure to act and as a result of external
couraged to take responsibility for identifying and escalating
factors. The conscious and systematic approach to address-
risks and rejecting inappropriate measures. Internal control
ing opportunities and risks is inextricably linked to the Würth
systems, instructions and training courses ensure that employ-
Group’s entrepreneurial activities.
ees are informed about the current status of legislation and
also support them in identifying and dealing with risks.
The decentralised structure of the Würth Group represents a
great advantage, especially given that the individual coun-
2 Risk governance framework
tries in which Würth operates vary so greatly in their eco-
nomic performance. However, as a result of the international-
isation of its business activities, the Würth Group is exposed
2.1 Governance
to the political risks of each economic region.
The Würth Group’s risk governance framework is based on
the “three lines of defence” model as an effective control
Due to restrictive legal standards applying to national and
and monitoring system. In this context, corporate risks are
international transactions involving goods, services, pay-
managed by three independent levels, which ensure that the
ments, capital, technology, software and other types of intel-
risk and control procedures work properly.
lectual property, compliance risks have also gained in impor-
tance. The Würth Group always seeks to comply with all
The first line of defence consists of all the functions associat-
regulations and administrative requirements for its business,
ed with the implementation of day-to-day business. As the
both nationally and internationally. This applies when deal-
risk owners, they are responsible for identifying and analys-
ing with Würth’s customers and suppliers, employees, com-
ing risks in the business processes, implementing appropriate
petitors, other business partners and public authorities.
controls on the management of the risks and testing their
effectiveness. This first line of defence is intended to prevent
Against this background, systematic risk management for
or discover and correct at an early stage all risks that are
achieving corporate goals has become of central impor-
inherent in the operational activities.
tance. The Würth Group’s policy on risk and opportunities
is aimed at meeting the medium-term financial objectives
In contrast to the first line, the second line of defence primar-
and at ensuring sustainable, long-term growth. To achieve
ily serves to control and monitor the first line of defence. It
this, the Würth Group has a system that identifies en-
takes on various tasks in supervising and controlling operat-
trepreneurial opportunities and risks, assesses them using
ing risk management, ensuring that this works properly.
a standardised system, weighs them against each other and
Responsibility for the second line of defence is assigned to
communicates them.
control functions such as compliance and controlling.
The Central Management Board of the Würth Group holds
The third line of defence is the independent auditing body
overall responsibility for the Group-wide risk management
responsible for internal auditing. It carries out risk-oriented
process and defines the principles of the Würth Group’s risk
audits on behalf of the Supervisory Body and is independent
policy and strategy. The Management of each Group com-
of the first two lines of defence and the entity’s management
pany is responsible for establishing an effective and efficient
team. This allows the third line of defence to understand the
risk management system in its entity. They are supported by
processes and risks at the first and second lines of defence
the Würth Group risk manager, who reports directly to the
and to objectively assess the internal control mechanisms.
Central Management Board and coordinates the risk man-
agement process at Würth Group level. The risk manager re-
2.2 Framework
mains in close contact with the risk controller of the Advisory
Mutual trust, predictability, honesty and straightforwardness,
Board, who reports directly to the Chair of the Würth Group.
directed both internally and externally, are fundamental prin-
ciples that are deeply ingrained in Würth’s corporate culture
and in the corporate philosophy. This does not just entail ad-
36
Risk Management and Control
hering to all applicable laws and inhouse regulations, but
risks that are directly linked with the divisional activities of its
also means ensuring that employees maintain the proper
Inhouse Banking and External Financial Services divisions.
mindset, which is key to the sustainable corporate success of
The Würth Group’s most important risk types are credit risks
the Würth Group. Extensive internal guidelines, known as the
(including default risks), liquidity risks, market risks (including
Policies and Procedures Manual, operationalise these funda-
exchange rate, interest rate and securities price risks) and
mental principles in the form of descriptions of the structural
operational risks.
and process organisation, as well as setting out specific rules
and codes of conduct.
Most of the Würth Group’s financial risks are measured,
monitored and controlled centrally by Würth Finance
Using the Group-wide Würth Information System, an integral
International B.V. It pursues a conservative risk policy as
component of the internal control and risk management sys-
part of its risk-oriented company management. It refrains
tem of the Würth Group, all key performance indicators
from transactions with imponderable risks and only enters
required to steer the Würth Group are presented in a timely
into quantifiable risks within clearly defined limits. This princi-
manner and are available for further evaluation by the
ple forms the basis of the risk policy and provides guidelines
Central Management Board and Executive Vice Presidents,
for business decisions. The general goal is not to eliminate
based on standardised monthly reporting.
all risk, but to achieve a balanced relationship between risk
and return.
Würth’s Group-wide, system-based control mechanisms, such
as validation and cross-checks, optimise the quality of the
Principles and methods for measuring financial risks, limits
information used as a basis for decision-making. A Group-
and permissible instruments for managing financial risks,
wide online record for the Würth Group entities’ financial
and the design of an effective information and reporting
statements is not only efficient, but also avoids carry-over
system are set out in separate financial risk management
errors, safeguards the uniform provision of information and
regulations, and all financial transactions must comply with
includes numerous plausibility checks, without which the in-
these. This framework includes a detailed list of the maxi-
formation cannot be forwarded. This platform also ensures
mum risk exposures approved by the Board of Directors of
that financial reporting changes are implemented in a uni-
Würth Finance International B.V. A core aspect of the frame-
form manner across the Würth Group. Data are protected
work is a system of defined, binding limits and permissible
against changes by using check digits and a system of IT
financial instruments.
access rights. Standard software is used for consolidation.
Changes in the system settings are logged centrally. The
The Würth Finance Group (WFG) maintains an internal
monthly and annual financial statements of Würth Group
control system. The self-imposed obligation to check certain
companies are subject to regular automated assessment
processes, routines and functions at predetermined intervals
mechanisms, as are the consolidated financial statements.
and to monitor the elimination of identified sources of error
Moreover, Würth’s Policies and Procedures Manual contains
allows the WFG to protect itself in advance against financial
internal procedural instructions.
losses or liability risks. The internal control system is in place
to ensure the correctness and reliability of accounting. It con-
Internal publications and training include detailed rules on
tains principles, procedures and measures to ensure the ef-
financial reporting. Compliance with these rules is regularly
fectiveness and efficiency of accounting. The main objective
reviewed by the central auditing department. External spe-
of the internal control system is to ensure that all business
cialists are consulted to clarify the accounting implications
transactions are recorded, processed and documented cor-
of legal and tax issues. External actuaries calculate pension
rectly and in full, in accordance with statutory regulations
and similar obligations. Central and local training courses
and standards as well as other internal guidelines.
for those in charge of finance departments also ensure that
all employees involved in the financial reporting process are
The principles for handling operational risk are anchored in
up to date on the latest legislation and information of rele-
a comprehensive set of guidelines and procedures that define
vance to them.
how employees should carry out their activities. The strategic
objective of a balanced relationship between risk and return
Embedded in the Würth Group, Würth Finance International
is always pursued, applying a cost/benefit analysis. Each
B.V. has access to the aforementioned Group-wide risk
business area takes responsibility for its operational and
management system. It is exposed to a large number of
compliance risks and for having adequate procedures in
37
Annual Report 2024 Würth Finance Group
place to manage those risks. Entities are supported by desig-
Every Würth Group company is granted a credit limit by the
nated second line of defence operational risk and compliance
Würth Group’s Central Management Board. Würth Finance
teams that are responsible for independent risk oversight.
International B.V. monitors compliance with these limits on
a monthly basis. In the event of a continuous credit limit
breach, the Würth Group’s Central Management Board
3 Financial risk and opportunities
is obliged to grant a new credit limit. Such credit limit
breaches were repeated in the year under review. The
Further information on the risks arising from financial instru-
Central Management Board subsequently adjusted the
ments and their management can be found specifically in
credit limits. Any credit risk relating to lendings to individual
note 18 and in the notes to the separate financial report on
Würth Group companies with negative equity as at the
the website (wuerthfinance.net).
reporting date are secured by letters of comfort from the
superordinate parent company.
3.1 Credit risk
Credit risk is defined as the risk of a financial loss caused
3.2 Liquidity risk
by a counterparty failing to meet its financial obligations
The WFG defines liquidity risk as the risk of being unable to
or by a deterioration in the credit quality of the counterparty.
meet due payment obligations in full or on time. In addition,
In the event of a default, the WFG incurs a loss equal to
there is the risk that refinancing means cannot be procured
the amount owed by the debtor, less any recoveries. The
or can only be procured at higher market rates (liquidity
maximum credit risk corresponds to the value of all financial
protection or refinancing risk).
assets, contingent liabilities and unused irrevocably guaran-
teed lending commitments reported in the Financial
The WFG is the main financing company of the Würth
Statements.
Group and, in this function, manages liquidity risks in accord-
ance with the recorded strategic guidelines of the Central
Given the nature of its core business activities, the WFG
Management Board. It also helps to optimise the financial re-
monitors the counterparty default risk for all its major risk-
sult by exploiting market opportunities in a targeted manner.
related activities.
The overriding goal of the Würth Group and the associated
The WFG aims to minimise the credit risk and has defined its
risk appetite is the ability to meet its payment obligations at
risk appetite in only entering into business relationships with
all times, even in extraordinary situations.
first-class external counterparties. Binding counterparty limits
are defined for each rating level, but the aim is to enter into
The high international creditworthiness of the Würth Group
business relationships only with banks with a Standard &
(Standard & Poor’s has awarded its non-current liabilities an
Poor’s minimum rating of “BBB” (equivalent to a rating of
“A” rating) allows the WFG to raise funds in the international
“Baa” from Moody’s and “BBB” from Fitch). The creditwor-
capital markets on favourable terms. To cover any liquidity
thiness of all the Würth Group’s banking relationships is con-
needs that may arise even in extraordinary circumstances,
trolled by daily monitoring of ratings and outlook changes.
the WFG also has credit lines granted by various banks.
A rating downgrade leads to a reduction in the credit limits
The annual financial requirements plan of the Würth Group
and to immediate reduction or closure and transfer of open
serves as a basis for the size and the management of such
transactions to other banks. In 2024 there were seven rating
liquidity reserves.
upgrades and one rating downgrade, which did not affect
the open positions.
To measure, analyse, monitor and report on liquidity risk, the
WFG prepares liquidity overviews on a daily basis and re-
The WFG has concluded ISDA agreements with all external
ports the liquidity and debt status of the whole Würth Group
counterparties for financial derivatives transactions. These
to the Central Management Board of the Würth Group on a
agreements include a Credit Support Annex that ensures the
monthly basis.
periodic net present value cash settlement of the outstanding
transactions. The counterparty risks relating to delcredere
All financial requirements were met in the reporting period
business are transferred in full to insurance companies.
under review.
38
Risk Management and Control
3.3 Market risk
3.3.2 Interest rate risk
A large part of the WFG’s business activities is subject to
Interest rate risk is the risk of loss arising from changes in
market risk, defined as the possibility of changes in the fair
interest rates in all currencies. Interest rate risk arises from
values of the trading and investment positions. Risks may
balance sheet positions such as loans, financial assets at fair
arise from changes in exchange rates, interest rates and
value, payables to related parties and banks, and deriva-
securities prices.
tives, including those used for hedge accounting purposes.
These positions may affect other comprehensive income or
One of the main objectives in dealing with market risks is
the income statement, depending on their accounting treat-
to ensure that the risk corresponds with the approved risk
ment. A significant proportion of the loans to Würth Group
appetite and is appropriate to the defined strategy.
companies are refinanced by fixed-interest bonds with par-
tially similar interest and maturity structures.
Both on-balance-sheet and off-balance-sheet financial instru-
ments are used to manage market price risks. Before con-
In order to hedge interest rate risks, the use of derivatives
cluding new transactions, compliance with the prescribed
such as forward rate agreements, interest rate swaps, swap-
limits and the permissibility of derivative financial instruments
tions, caps/floors and cross-currency swaps is permitted in
must be checked. Compliance with the limits is monitored on
addition to any balance sheet structure measure. The limit for
a daily basis.
these derivative financial instruments is set at a notional
amount of EUR 1,000 million, which was not breached in the
The defined limits were not exceeded in the reporting period
reporting period under review.
under review.
Interest rate risks are measured using gap and sensitivity
3.3.1 Exchange rate risk
analyses, key rate duration analyses and present value
The WFG defines exchange rate risk as the loss risk on net
calculations.
assets resulting from exchange rate fluctuations between the
transaction currency and the applicable functional currency.
The WFG’s appetite for interest rate risks is defined by the
net present value sensitivity of all on-balance-sheet and off-
Inhouse Banking’s business is exposed to exchange rate risk;
balance-sheet exposures to adverse changes in interest
the insurance brokerage business is only subject to transla-
rates by 100 basis points, expressed as a percentage of
tion risk from the conversion of business transactions in Swiss
equity capital.
francs into the consolidation currency, which is the euro.
The defined limits set by the Board of Directors were not
Individual limits are set for each currency or currency group
exceeded in the reporting period under review.
to manage exchange rate risks. The limits are to be regarded
as open net positions towards the balance sheet currency.
3.3.3 Securities price risk
The positions are valued and monitored on a daily basis.
Securities price risk is the risk of financial loss resulting from
changes in the price of (publicly traded) securities. To assess
In assessing exchange rate risks, the absolute amount of
securities price risks, the absolute amount of the securities
open foreign currency positions and changes in their earn-
position and its earnings performance are considered. All
ings development are taken into account. For this purpose,
positions are valued at market prices (marked to market).
all positions are valued on a daily basis at market rates
(marked to market) and should not exceed the total amount
of EUR 50 million.
In order to control the exposure to exchange rate risk, the
WFG enters into FX spot transactions, forwards, cross-currency
swaps and currency options with external counterparties.
The defined limits were not exceeded in the reporting period
under review.
39
Annual Report 2024 Würth Finance Group
The WFG pursues a conservative investment policy which
Furthermore, the Würth Group has a Group-wide whistle-
allows investment in bonds, money market paper (investment
blowing system that can be used not only by employees
and sub-investment-grade) and shares on regulated stock
but also by customers, suppliers and other stakeholders to
exchanges and capital markets. In addition to a defined
anonymously report suspicions of compliance breaches.
benchmark strategy with strategic equity exposure, securities
price risk is countered through diversification of the invest-
For tax compliance, the WFG is structured in the manner that
ment portfolio. Limits per asset class have also been defined
it needs to comply with both Swiss and Dutch tax legislation
to limit securities price risk, including an automatic equity
and has embedded operating policies and procedures to en-
position reduction mechanism which is triggered at a
sure compliance with these tax legislations.
negative YTD return of the equity portfolio of EUR 750,000,
maximising the total negative return of the equity portfolio
4.2 Technology
at EUR 6 million per financial year.
Execution of the WFG’s tasks requires high-performance IT
systems and networks. Accordingly, the IT systems and IT
This automatic position reduction mechanism was not activat-
security are continually enhanced and monitored via an
ed in the reporting period under review.
information security management system. The WFG, in
collaboration with cyber security experts, works to counter
the constantly growing and evolving threat from attacks on
4 Operational risk
information and communications technology. This comprises
technical and organisational protection measures and cyber
Operational risk is the risk of losses resulting from inadequate
risk awareness training for employees. In addition, the WFG
or failed internal processes or systems, human error or exter-
has a business disaster recovery system. The ICT infrastruc-
nal events.
ture is highly scalable, enabling additional business volumes
to be dealt with cost-effectively and with a high level of
4.1 Legal and compliance risk
processing quality.
The WFG defines legal and compliance risk as the risk of
possible, unintentional non-compliance with laws, regula-
4.3 Staff
tions or standards which could have a negative impact on
The success of the WFG depends to a large extent on its
the business and its business relationships and, in the worst
employees and their know-how. Through their ideas and
case, could result in the imposition of payments for dam-
suggestions, the employees are deeply involved in particular
ages, fines, penalties or other forms of liability.
activities and work processes and thus make a significant
contribution every day to the WFG’s continued existence,
Issues that represent a challenge for financial and insurance
ongoing improvement and innovations. Personnel risks will
service providers include satisfying regulatory requirements,
continue to influence the WFG in the coming years, as
with rules for dealing with employees, clients and business
competition for highly qualified employees remains intense.
partners, with data and with (supervisory) authorities, as well Future success will depend, among other factors, on the
as addressing possible fraud risk, corruption risk and bribery
extent to which the WFG succeeds in recruiting, integrating
risk. It goes without saying that the WFG endeavours to ob-
and retaining skilled employees in the long term.
serve and adhere to all rules and regulations applying to its
business. It has the necessary critical mass and the organisa-
Staff turnover is documented and analysed across all hierar-
tional set-up to ensure effective and efficient compliance
chy levels. Regular surveys conducted by independent institu-
management and thus to meet the increasing regulatory re-
tions and monthly monitoring of staff turnover are key tools
quirements in the finance and insurance brokerage business.
that allow the WFG to identify unfavourable developments,
Due to the increasing legal complexity, the Würth Group has
analyse their impact on staff recruitment and combat these
inhouse experts and consults renowned external consultants
effects using targeted measures. The bottleneck risk arising
on a case-by-case basis.
from current demographic trends, among other considera-
tions, can be countered by attractive employment conditions,
Training and education within and outside the (Würth)
a modern and appealing working environment, and training
Group are carried out regularly to promote awareness of
tailored to individual roles.
legal and compliance risks among employees.
As a family-owned business, Würth focuses on the long-
term development of the company. That applies equally to
40
Risk Management and Control
supporting up-and-coming talent at the WFG. For many
company’s risk framework is based on reliable and trans-
years it has taken on apprentices and employed them on
parent information.
a permanent basis, in line with staffing needs, once they
have completed their training. In addition, Würth Finance
The Würth Group began recording sustainability data in
International B.V. successfully gained some initial experience
2020. The first sustainability report for financial years
with an international trainee programme aimed at counter-
2020–2022 quantified the sustainability data of 156 of the
acting the shortage of qualified specialists.
more than 400 companies, responsible for 88% of the
Würth Group’s total sales. For the Sustainability Report
In order to secure the company’s future, the WFG supports
2023, the scope of the sustainability reporting was expand-
ongoing training throughout employees’ professional lives.
ed to include the data of all companies for the first time in
Its own employees take precedence when management posi-
line with the Würth Group’s scope of consolidation (Würth
tions need to be filled. Up-and-coming management talents
Group Sustainability Report 2023, see wuerthfinance.net).
are prepared for various levels of management within the
Group through the Würth Group’s support programmes.
The WFG – which is integrated into the Würth Group’s sus-
These programmes offer employees targeted development
tainability management system – will base its future sustaina-
opportunities that are tailored to their individual ambitions
bility reporting on the Group-wide database and standard-
and skills. In addition, employee training represents a crucial
ised data infrastructure, thereby ensuring transparency and
element of a lifelong learning process within the Würth
comparability of sustainability performance. This will enable
Group and the WFG.
the WFG not only to minimise risks, but also to achieve a
positive impact on the company’s reputation and value.
The WFG also sees opportunities to take greater account of
5 Sustainability
sustainability aspects in the design of its own products and
services, as part of the Würth Group’s sustainability strategy.
5.1 Foundation
Sustainability is becoming increasingly relevant to society.
5.2 Environmental protection and climate change
This is leading to a heightened awareness for concerns such
Environmental risks arise from the effects of climate change
as climate change, social standards and corporate miscon-
and efforts to mitigate or contain it. They are divided into
duct. As a result, the market environment is changing rapidly
two categories: Physical risks include the direct impact of
across all industries. In addition, the inclusion of sustainabili-
weather and climate changes on the economy. Transition
ty criteria in decision-making by investors and by banks
risks result from the societal changes brought about by the
granting loans has led to an expansion and tightening of the
shift to a decarbonised and circular economy.
associated requirements for corporate governance and risk
management at companies.
The WFG intends to support an environmentally friendly
corporate governance of the Würth Group and its business
Sustainability risks, also known as environmental, social and
partners. That includes promoting and funding projects that
governance (ESG) risks, potentially influence the level of
help to reduce greenhouse gas emissions and protect the
capital and insurance costs, as well as the creditworthiness
environment. The first step in this direction is the disclosure
of the Würth Group and its business partners. This challenge
and reporting of quantitative metrics on the current situation
is being met through active sustainability management at
and the creation of incentives for positive sustainability
strategic and operational level and the expansion of associ-
development. At the same time, the latest developments in
ated reporting, including at the WFG.
IFRS standards as well as the Corporate Sustainability Re-
porting Directive and the European Sustainability Reporting
Sustainability risks relate to the potential impact that a
Standards are adhered to.
company, its stakeholders and the environment or society
can have on each other. They are based on a triangular
relationship where each nodal point acts in both directions.
ESG risks can have a positive or negative impact on a com-
pany’s assets, business model and reputation. They have
a complex cause-and-effect relationship with the risk frame-
work and all other risk factors. The systematic incorporation
of these risks through the three lines of defence in the
41
Annual Report 2024 Würth Finance Group
The WFG sees the integration of environmental and climate
The WFG’s corporate governance is geared towards com-
goals into the design of financial and insurance solutions as
plying with the relevant legal and regulatory requirements,
an opportunity and has made an initial contribution to
avoiding infringements wherever possible and thus protect-
strengthening sustainability-based financial management in
ing the company’s good reputation. An institutionalised
the Würth Group by concluding a “sustainability-linked”
whistleblowing system helps in the identification and report-
loan agreement.
ing of any infringements. The WFG works closely with the
authorities in the clarification of conduct that does not com-
5.3 Social standards
ply with the law and standards.
In the context of ESG, social risks relate to the consequences
of a company’s failure to meet its social responsibilities in its
The decentralised structure of the Würth Group and short
role as an employer, customer, service provider and stake-
decision-making paths enable the WFG to respond quickly
holder in society. For the Würth Group and the WFG, it has
to changes with regard to the shaping of corporate gover-
always been self-evident that they need to behave in a
nance and thus support long-term, sustainable growth.
socially responsible manner towards all stakeholders and
to give high priority to the relevant values when designing
5.5 Diversity and inclusion
and developing the company’s social architecture.
The Würth Group and Würth Finance International B.V.
recognise the importance of a diverse workforce and believe
With regard to employees, the WFG’s commitment is not
that their business activities benefit from staff with a variety
limited to health and safety. It wishes to support its employ-
of world views, experiences and socio-economic back-
ees in their activities and work experience. The WFG strives
grounds. Thanks to these aspects different perspectives
to attract and foster a broad range of talented employees at
arise, which help to drive growth and innovation and avoid
all levels of the company; it is eager to promote workforce
a silo mentality.
diversity and equality of opportunity and regards a fair re-
muneration system as a self-evident requirement.
In order to anchor these aspects firmly within the corporate
culture, multilingual communication is promoted for employ-
The WFG is continuously investing in digital collaboration in-
ees. This can be seen, for example, in bilingual information
frastructure. This results not just in efficiency-enhancing work-
events and in written communication with employees in
flow automation; it also creates new opportunities for collab-
different languages. Access to relevant information in
oration at different work locations with flexible working time
different languages improves mutual understanding, makes
models and conditions, adapted to the needs of employees.
for a stronger connection between the various teams and
promotes a sense of belonging to the company among
Based on the values of the Würth Group, the WFG supports
employees.
local social projects and organisations in the Netherlands
and Switzerland. These are often linked to volunteering work
Following the introduction of statutory requirements regard-
by employees, for example as part of Special Olympics, an
ing gender diversity in the Netherlands for companies such
organisation that provides training and competition in sports
as Würth Finance International B.V., the company’s diversity
for people with intellectual disabilities.
policy was revised in 2022. Under the new policy, the com-
pany undertakes to improve the gender balance throughout
5.4 Governance
the company and has developed ambitious targets for this
The third element in ESG relates to the factors of good cor-
purpose. In this context, the current composition of the
porate governance. The guiding principles in this area are
Board of Directors and Management, as well as the current
accountability, fairness, transparency and responsibility. It
representation of women in the company, have been taken
must be taken into account that the specific institutional and
into account.
cultural context significantly influences the way a company is
set up and monitored.
Würth Finance International B.V. as at 31 December 2024
Composition male/female
per relevant corporate body
Male
Female
The WFG has suitable and effective structures, management
Board of Directors
7
1
and decision-making systems, procedures and processes as
Management: Managing Directors
2
0
well as competent staffing of management and supervisory
Management: other members
3
0
bodies, as important elements in ensuring good corporate
Company
54
29
governance. This is complemented by a solid financial posi-
tion, a comprehensive and effective risk control system and
Note: the Management consists of the statutory members (Managing
performance-related remuneration structures.
Directors) and non-statutory members.
42
Risk Management and Control
To accelerate the achievement of a better gender balance
• All employees are educated on the value of diversity.
at the management level, the company aims to appoint at
Managers are trained and made aware of the topic.
least one female member for the Management and Board
• The company will monitor how applicants, employees and
of Directors by the end of 2025. The Board of Directors
leavers perceive the issues of diversity and inclusion as
achieved this target in 2024 through the appointment of a
experienced within Würth Finance International B.V.
woman to the Board. In the long term, a minimum balance
(and action is taken based upon the outcome).
of 30% men and 30% women by 2030 is targeted.
• Würth Finance International B.V. has set up a D&I working
group to tackle D&I issues and help create a more
The following measures have been or will be taken to
inclusive working environment.
achieve these goals:
• The Würth Group has established a “diversity and
The current composition of the management reflects the
inclusion team” supporting all Group companies including
fact that the company, with its male-dominated employee
Würth Finance International B.V. in their ambition to
base, has traditionally supported the promotion of internal
achieve a more diverse workforce and an inclusive
candidates. While the company will continue to invest in the
working environment. This support consists of a mentoring
development and promotion of its people, it recognises the
programme, a women’s network and training materials to
importance of creating an inclusive workplace and attracting
create awareness on diversity and inclusion (D&I).
female talent at all levels. Although the desired change will
• Würth Finance International B.V. has ensured that gender
not happen overnight, the company has clear goals on what
neutral wording will be used whenever job vacancies are
it aims to accomplish and is determined to act accordingly.
announced.
• “Gender diversity” will be included in the profile for new
members of Management and the Board of Directors.
• Recruiters are instructed to include female talent in
relevant shortlists.
• Working towards teams with greater gender diversity is
included as an objective for senior management.
Basic principles of our risk management system
The Management bears the responsibility for all risks
disclosure of risks to the Group and company management,
■
incurred as a result of the company’s business activities
owners, supervisory authorities and other stakeholders.
and seeks to achieve a healthy balance between risk and
returns.
Income is protected on the basis of risk tolerance – i.e. the
■
maximum risk that the Würth Finance Group can bear
An independent control process forms an integral part of
given its financial and earning power.
■
the corporate structure.
Ultimately, the Würth Finance Group’s reputation depends
■
Employees are familiar with and alert to the principal risks
on effective risk management and control.
■
specific to their area of activity. A central element of risk
control is the comprehensive, transparent and objective
43
Annual Report 2024 Würth Finance Group
Würth Group
LEGAL STRUCTURE
(SIMPLIFIED ILLUSTRATION)
Würth
Family Foundations
Adolf Würth
Würth Promotion GmbH
GmbH & Co. KG
Austria
Germany
Reinhold Würth
International
Holding GmbH
subsidiaries
Germany
International
subsidiaries
Würth Finance Group
Würth Finance
Würth International AG
International B.V.
Switzerland
Netherlands
Würth Financial
Würth Finance Int’l B.V.
International
Services AG
Rorschach Branch
subsidiaries
Switzerland
Switzerland
Würth Invest AG
Switzerland
44
Executive Bodies
Würth Finance Group
EXECUTIVE BODIES
(As at 31 December 2024)
Board of Directors
Würth Finance International B.V.
Elected until:
Ralf Schaich
(Member of the Central Management Board of the Würth Group)
Chairman
2025
Prof. Dr. h. c. mult. Reinhold Würth
(Chairman of the Supervisory Board of the Würth Group)
Member
2025
Dieter Gräter
(Vice President Finance, Würth-Verwaltungsgesellschaft mbH)
Member
2025
Christoph Raithelhuber
Member
2025
Mag. Michel Haller
(Chief Executive Officer of Hypo Vorarlberg Bank AG)
Member
2026
Joachim Kaltmaier
(Former Member of the Central Management Board of the Würth Group)
Member
2026
Wolfgang Kirsch
(Former Chief Executive Officer of DZ Bank AG, Chairman of the Supervisory Board of Fresenius SE & Co. KGaA)
Member
2026
Isabelle Damen
(CFO and Board Member of the Teijin Aramid Group, member of the Supervisory Board of Pro Rail & BN International)
Member
2028
Managing Directors
Würth Finance International B.V.
Roman Fust
Philip Guzinski
Managing Directors
Würth Financial Services AG
Adrian Parpan
Beat Jordan
Managing Directors
Würth Invest AG
Roman Fust
(Delegate of the Board of Directors)
Patrik Imholz
Auditors
BDO Audit & Assurance B.V., Eindhoven:
Würth Finance International B.V.
BDO AG, Zurich:
Würth Invest AG
EY, Zurich:
Würth Financial Services AG
Internal auditors
KPMG, Zurich:
Würth Finance International B.V.
45
Annual Report 2024 Würth Finance Group
Würth Finance Group
INFORMATION FOR INVESTORS
Outstanding capital market transactions by Würth Finance International B.V. at 31 December 2024:
Bond
Notional amount:
Coupon rate:
Re-offer yield:
Term:
Listing:
EUR 500 million
1.000%
1.038%
25.05.2018–26.05.2025 Luxembourg Stock Exchange /ISIN: XS1823518730
CHF 300 million
2.100%
2.070%
16.11.2022–16.11.2026 SIX Swiss Exchange / ISIN: CH1206367604
EUR 750 million
0.750%
0.782%
21.05.2020–22.11.2027 Luxembourg Stock Exchange /ISIN: XS2176534795
EUR 600 million
2.125%
2.174%
23.05.2022–23.08.2030 Luxembourg Stock Exchange /ISIN: XS2480515662
EUR 500 million
3.000%
3.051%
28.10.2024–28.08.2031 Luxembourg Stock Exchange / ISIN: XS2911681083
All bonds are irrevocably and unconditionally guaranteed by Adolf Würth GmbH & Co. KG and have been granted an “A”
rating by Standard & Poor’s.
Multi Currency Commercial Paper Programme
Notional amount:
Coupon rate:
Maturity period:
EUR 500 million
variable
7 days–2 years
Under this programme, both Würth Finance International B.V. and Adolf Würth GmbH & Co. KG can issue short-term
commercial paper for up to a cumulative total of EUR 500 million.
46
Würth Finance Group
EXCERPT FROM THE
FINANCIAL STATEMENTS 2024
47
AEnxncuearlpRt efrpoomrtth2e02Fi4naWncüirathl SFtiantaenmceenGtsr2o0up24
Consolidated income statement
for the year ended at 31 December
in TEUR
2024
2023
Operating income
Interest income from financial instruments measured at amortised cost
144,953
125,621
Interest income from financial instruments measured at fair value through profit or loss
24,770
22,768
Interest expenses
–105,826
–97, 545
Net interest income
63,897
50,844
Income from factoring activities
13,613
13,573
Income from commission and service fee activities
49,505
49,564
Income from trading activities and financial instruments
23,540
20,376
Other ordinary income from related parties
910
592
Expected credit loss (expenses) /recovery
1,742
4,273
Total operating income
153,207
139,222
Operating expenses
Personnel expenses
–26,738
–23,735
Other administrative expenses
–16,207
–15,268
Amortisation expenses
–2,082
–2,018
Total operating expenses
–45,027
–41,021
Profit before taxes
108,180
98,201
Income tax expense
–21,930
–19,132
Net profit for the year
86,250
79,069
Consolidated statement of comprehensive income
for the year ended at 31 December
in TEUR
Net of tax
2024
2023
Profit for the year
86,250
79,069
Total items that will be reclassified to the income statement
Exchange differences on translation of foreign operations
–250
141
Net gain/(loss) on cash flow hedges
1,614
1,918
Total items that will not be reclassified to the income statement
Remeasurement gain /(loss) on defined benefit plans
–2,109
–3,439
Other comprehensive income for the year (OCI)
–745
–1,380
Total comprehensive income for the year, net of tax
85,505
77, 689
48
Consolidated balance sheet
at 31 December before appropriation of profits
in TEUR
2024
2023
ASSETS
Non-current assets
Intangible assets
1,238
1,435
Right-of-use assets
2,247
1,621
Property, plant and equipment
397
271
Loans to related companies
1,164,651
1,389,770
Positive fair values of derivative instruments
5,293
10,193
Deferred tax assets
1,183
1,781
Total non-current assets
1,175,009
1,405,071
Current assets
Receivables from related companies
1,723,063
1,297,954
Positive fair values of derivative instruments
12,713
9,785
Other assets
5,412
5,724
Income tax receivables
0
55
Accrued income and prepaid expenses
16,186
12,088
Securities at amortised cost
186,426
112,949
Securities at fair value through profit or loss
113,607
114, 782
Cash and cash equivalents
1,430,269
1,191,590
Total current assets
3, 487, 676
2,744,927
Total assets
4,662,685
4,149,998
EQUITY AND LIABILITIES
Shareholders’ equity
Issued capital
16,000
16,000
Additional paid-in capital
5,000
5,000
Retained earnings
497,274
438,133
Cash flow hedge reserve
–3,795
–5,409
Foreign currency translation
–71
179
Total shareholders’ equity
514,408
453,903
Non-current liabilities
Bonds issued
2,155,764
2,149,847
Liabilities for pension plans
7,227
5,292
Lease liabilities
1,054
341
Negative fair values of derivative instruments
12,561
12,949
Deferred tax liabilities
385
397
Total non-current liabilities
2,176,991
2,168,826
Current liabilities
Bonds issued
498,623
0
Payables to related companies
1,422,468
1,474,770
Lease liabilities
1,217
1,304
Payables to banks
675
5,731
Income tax payables
14,791
12,422
Negative fair values of derivative instruments
10,168
13,227
Other liabilities
11, 571
10,435
Accrued expenses and deferred income
11, 773
9,380
Total current liabilities
1,971,286
1, 527, 269
Total equity and liabilities
4,662,685
4,149,998
49
AEnxncuearlpRt efrpoomrtth2e02Fi4naWncüirathl SFtiantaenmceenGtsr2o0up24
Consolidated statement of changes in equity
for the year ended at 31 December
Foreign
Issued
Additional
Retained
Cash flow
currency
in TEUR
capital paid-in capital
earnings hedge reserve
translation
Total
At 1 January 2023
16,000
5,000
387, 503
–7, 327
38
401,214
Net profit for the year
0
0
79,069
0
0
79,069
Foreign currency translation
0
0
0
0
141
141
Cash flow hedge accounting
0
0
0
1,918
0
1,918
Remeasurement gain /(loss) on defined benefit plans
0
0
–3,439
0
0
–3,439
Total comprehensive income for the year
0
0
75,630
1,918
141
77, 689
Dividends
0
0
–25,000
0
0
–25,000
At 31 December 2023
16,000
5,000
438,133
–5,409
179
453,903
At 1 January 2024
16,000
5,000
438,133
–5,409
179
453,903
Net profit for the year
0
0
86,250
0
0
86,250
Foreign currency translation
0
0
0
0
–250
–250
Cash flow hedge accounting
0
0
0
1,614
0
1,614
Remeasurement gain /(loss) on defined benefit plans
0
0
–2,109
0
0
–2,109
Total comprehensive income for the year
0
0
84,141
1,614
–250
85,505
Dividends
0
0
–25,000
0
0
–25,000
At 31 December 2024
16,000
5,000
497, 274
–3,795
–71
514,408
Würth Finance International B.V. has authorised share capital of EUR 80 million consisting of 160,000 share certificates with
a nominal value of EUR 500. Of this authorised share capital, 32,000 share certificates have been subscribed and fully paid
in, corresponding to EUR 16 million.
The net profit for the year and other comprehensive income for the year are attributable to the equity holders of the parent.
In 2024, a dividend of TEUR 25,000 (EUR 781 per share) was paid for financial year 2023.
50
Consolidated cash flow statement
for the year ended at 31 December
in TEUR
2024
2023
Net profit for the year
86,250
79,069
Amortisation and impairments
515
501
Adjustment to provision for taxes
2,369
3,112
Deferred tax expense / (benefit)
586
781
Other expenses and revenues without cash flows
10,400
27,319
Foreign exchange gains and losses (long-term loans)
–14,291
3,132
Foreign exchange gains and losses (short-term loans)
–8,528
2,287
(Increase)/decrease in operating assets
Redemption of long-term loans to related companies
62,318
69,167
Lending of long-term loans to related companies
–292,905
–303,882
Receivables from related companies
55,738
449,753
Positive fair values of derivative instruments
1,972
1,549
Income tax receivables
55
–3
Other assets, accrued income and prepaid expenses
–3,786
–2,615
Increase/(decrease) in operating liabilities
Payables to related companies
–52,302
280,108
Negative fair values of derivative instruments
–3,447
6,169
Other liabilities, accrued expenses and deferred income
3,529
–6,253
Net cash flows from operating activities
–151,527
610,194
Purchase of property, plant and equipment, and intangible assets
–444
–335
Purchase of securities
–294,259
–154,587
Disposal of securities
217, 735
32,224
Net cash flows from investing activities
–76,968
–122,698
Proceeds of borrowings
497,230
0
Repayment of borrowings
0
0
Commercial paper
0
–75,000
Dividend payments
–25,000
–25,000
Net cash flows from financing activities
472,230
–100,000
Net increase/(decrease) in cash and cash equivalents
243,735
387, 496
Net cash and cash equivalents at the beginning of the year
1,185,859
798,363
Net cash and cash equivalents at the end of the year
1,429,594
1,185,859
Net increase/(decrease) in cash and cash equivalents
243,735
387, 496
Additional information on operating cash flows
Income taxes paid
–18,428
–15,742
Interest received
179,163
154,701
Interest paid
–88,369
–88,707
The funds for this cash flow statement are represented by cash and cash equivalents (net of payables to banks).
51
Published by
Layout and concept
Würth Finance International B.V.
Wirz Group AG, Zurich
Editors
Photos
Corporate Communications
Daniel Ammann Fotografie, Herisau: p. 05, p. 07, p. 09, p. 13, p. 14
Würth Finance International B.V.
bymarjo, ’s-Hertogenbosch: p. 06, p. 08, p. 11
Wirz Group AG, Zurich
René Lamb Fotodesign, Kreuzlingen: p. 21, p. 31, p. 35
Würth Finance Group/Würth Finance International B.V.
FINANCIAL STATEMENTS 2024
CONTENTS
Financial Statements 2024
Würth Finance Group
04 Consolidated Income Statement
04 Consolidated Statement of Comprehensive Income
05 Consolidated Balance Sheet
06 Consolidated Statement of Changes in Equity
07 Consolidated Cash Flow Statement
08 Notes to the Consolidated Financial Statements
Financial Statements 2024
Würth Finance International B.V.
46 Company Income Statement
46 Company Balance Sheet
48 Accounting Policies Used in Preparing
the Company Financial Statements
49 Notes to the Company Financial Statements
55 Other Information
56 Independent Auditor’s Report
Würth Finance Group
FINANCIAL STATEMENTS 2024
Annual Report 2024 Würth Finance Group
Consolidated income statement
for the year ended at 31 December
in TEUR
Notes
2024
2023
Operating income
Interest income from financial instruments measured at amortised cost
10
Interest income from financial instruments measured at fair value through profit or loss
10
Interest expenses
10
–105,826
–97, 545
Net interest income
Income from factoring activities
Income from commission and service fee activities
11
Income from trading activities and financial instruments
12
Other ordinary income from related parties
13
Expected credit loss (expenses) /recovery
18a
Total operating income
Operating expenses
Personnel expenses
14
–26,738
–23,735
Other administrative expenses
–16,207
–15,268
Amortisation expenses
–2,082
–2,018
Total operating expenses
–45,027
–41,021
Profit before taxes
Income tax expense
15
–21,930
–19,132
Net profit for the year
Consolidated statement of comprehensive income
for the year ended at 31 December
in TEUR
Net of tax
2024
2023
Profit for the year
Total items that will be reclassified to the income statement
Exchange differences on translation of foreign operations
–250
Net gain/(loss) on cash flow hedges
Total items that will not be reclassified to the income statement
Remeasurement gain /(loss) on defined benefit plans
–2,109
–3,439
Other comprehensive income for the year (OCI)
–745
–1,380
Total comprehensive income for the year, net of tax
04
Financial Statements 2024 Würth Finance Group
Consolidated balance sheet
at 31 December after appropriation of profits
in TEUR
Notes
2024
2023
ASSETS
Non-current assets
Intangible assets
3
Right-of-use assets
3
Property, plant and equipment
3
Loans to related companies
4, 16
Positive fair values of derivative instruments
18b, 18c
Deferred tax assets
15
Total non-current assets
Current assets
Receivables from related companies
16
Positive fair values of derivative instruments
18b, 18c
Other assets
5
Income tax receivables
15
Accrued income and prepaid expenses
Securities at amortised cost
7
Securities at fair value through profit or loss
6, 18a
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Shareholders’ equity
Issued capital
Additional paid-in capital
Retained earnings
Cash flow hedge reserve
–3,795
–5,409
Foreign currency translation
–71
Total shareholders’ equity
Non-current liabilities
Bonds issued
8
Liabilities for pension plans
14
Lease liabilities
Negative fair values of derivative instruments
18b, 18c
Deferred tax liabilities
15
Total non-current liabilities
Current liabilities
Bonds issued
8
Payables to related companies
16
Lease liabilities
Payables to banks
21
Income tax payables
Negative fair values of derivative instruments
18b, 18c
Other liabilities
9, 16
Accrued expenses and deferred income
Total current liabilities
Total equity and liabilities
05
Annual Report 2024 Würth Finance Group
Consolidated statement of changes in equity
for the year ended at 31 December
Foreign
Issued
Additional
Retained
Cash flow
currency
in TEUR
capital paid-in capital
earnings hedge reserve
translation
Total
At 1 January 2023
–7, 327
Net profit for the year
Foreign currency translation
Cash flow hedge accounting
Remeasurement gain /(loss) on defined benefit plans
–3,439
–3,439
Total comprehensive income for the year
Dividends
–25,000
–25,000
At 31 December 2023
–5,409
At 1 January 2024
–5,409
Net profit for the year
Foreign currency translation
–250
–250
Cash flow hedge accounting
Remeasurement gain /(loss) on defined benefit plans
–2,109
–2,109
Total comprehensive income for the year
–250
Dividends
–25,000
–25,000
At 31 December 2024
–3,795
–71
Würth Finance International B.V. has authorised share capital of EUR 80 million consisting of 160,000 share certificates with
a nominal value of EUR 500 . Of this authorised share capital, 32,000 share certificates have been subscribed and fully paid
in, corresponding to EUR 16 million.
The net profit for the year and other comprehensive income for the year are attributable to the equity holders of the parent.
In 2024, a dividend of TEUR 25,000 (EUR 781 per share) was paid for financial year 2023.
06
Financial Statements 2024 Würth Finance Group
Consolidated cash flow statement
for the year ended at 31 December
in TEUR
2024
2023
Net profit for the year
Amortisation and impairments
Adjustment to provision for taxes
Deferred tax expense / (benefit)
Other expenses and revenues without cash flows
Foreign exchange gains and losses (long-term loans)
–14,291
Foreign exchange gains and losses (short-term loans)
–8,528
(Increase)/decrease in operating assets
Redemption of long-term loans to related companies
Lending of long-term loans to related companies
–292,905
–303,882
Receivables from related companies
Positive fair values of derivative instruments
Income tax receivables
–3
Other assets, accrued income and prepaid expenses
–3,786
–2,615
Increase/(decrease) in operating liabilities
Payables to related companies
–52,302
Negative fair values of derivative instruments
–3,447
Other liabilities, accrued expenses and deferred income
–6,253
Net cash flows from operating activities
–151,527
Purchase of property, plant and equipment, and intangible assets
–444
–335
Purchase of securities
–294,259
–154,587
Disposal of securities
Net cash flows from investing activities
–76,968
–122,698
Proceeds of borrowings
Repayment of borrowings
Commercial paper
–75,000
Dividend payments
–25,000
–25,000
Net cash flows from financing activities
–100,000
Net increase/(decrease) in cash and cash equivalents
Net cash and cash equivalents at the beginning of the year
Net cash and cash equivalents at the end of the year
Net increase/(decrease) in cash and cash equivalents
Additional information on operating cash flows
Income taxes paid
–18,428
–15,742
Interest received
Interest paid
–88,369
–88,707
The funds for this cash flow statement are represented by cash and cash equivalents (net of payables to banks).
07
Notes to the consolidated Financial Statements
for the year ended at 31 December
1 Business activity
The companies belonging to the Würth Finance
Group (sub- sequently referred to as “the Group”) are part of the interna-
tionally active Würth Group. All share certificates pertaining
to Würth Finance International
B.V.
, Amsterdam, are held by
Reinhold Würth Holding GmbH
, Künzelsau, Germany, which is ultimately owned by the
family foundations
.
The core activities and the goal of the Group include provid- ing financing to and carrying out a wide range of financial activities with companies, both at home and abroad, belong- ing to the entire Würth Group, as well as providing consult- ing and other services in the area of pension funds and insur- ance to both private persons and small and medium-sized enterprises.
The Annual Report of the Group was approved by
the Man- agement on 30 April 2025 and can be obtained from Würth
Finance International B.V., Amsterdam, or downloaded from
the Würth Finance International B.V. website: wuerthfinance.net
Fully consolidated companies
The consolidated Financial Statements include
the financial statements of Würth Finance International B.V., Amsterdam,
and its subsidiaries, which are represented as a single busi-
ness entity known as the Würth Finance Group. Subsidiaries
that are controlled directly or indirectly by the Group have
been consolidated. Control is achieved when the Würth
Finance Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to
affect those returns through its power over the investee. Con-
trol is assumed if the Würth Finance Group holds more than
50% of the voting rights of the investee.
Subsidiaries are consolidated from the date on
which they were acquired by the Group and are deconsolidated from
the date of disposal.
Method of consolidation
The scope of consolidation of the Group as at
31 December 2024 is composed as follows:
| Reporting | Share capital | ||||
| Company | Core activities | Chamber of commerce no. | currency | (in thousands) | Quota |
| Würth Finance International B.V., | Treasury activities for the Würth Group | 008654700 | EUR | 16,000 | 100% |
| Amsterdam | |||||
| Würth Invest AG, | Asset management | CH - 350.3.0 07.992- 6 | CHF | 23,000 | 100% |
| Chur | |||||
| Würth Financial Services AG, | Financial and pension plan consulting/insurance | CH-020.3.918.954-7 | CHF | 1,500 | 100% |
| Rorschach | brokerage for corporate and private clients |
Annual Report 2024 Würth Finance Group
08
09
2 Accounting principles
General
The annual report has been prepared in ESEF and
is in accordance with the requirements as set out in the Delegat- ed Regulation
(EU) 2019/815 with regard to regulatory tech- nical
standards on the specification of a single electronic re- porting format (hereinafter: the RTS on ESEF).
The consolidated Financial Statements of the
Group have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union (EU-IFRS)
and with Part 9 of Book 2 of the Dutch Civil Code. The main
accounting principles are described in this section in order
to show how their application influences the stated results
and information for the Group.
The consolidated Financial Statements are
presented in euros and all values are rounded to the nearest thousand
(EUR 0,000), except when otherwise indicated.
The Group has prepared its consolidated financial
statements on the basis that it will continue to operate as a going concern.
New and amended standards and interpretations
Several amendments and interpretations apply for the first
time in 2024, but do not have an impact on the consolidated
Financial Statements of the Group.
The following amendments are effective for the
period begin- ning 1
January 2024:
• Supplier Finance Arrangements (Amendments to IAS 7 &
IFRS 7)
• Lease Liability in a Sale and Leaseback (Amendments to
IFRS 16)
• Classification of Liabilities as Current or Non-Current
(Amendments to IAS 1)
• Non-current Liabilities with Covenants (Amendments to
IAS 1)
The nature and effect of the changes as a result
of the adop- tion of
these new accounting standards are described below.
Supplier Finance Arrangements (Amendments to
IAS 7 & IFRS 7)
The amendments had no impact on the
consolidated finan-
cial
statements of the Group.
Lease Liability in a Sale and Leaseback
(Amendments to IFRS 16)
The amendments had no impact on the
consolidated finan-
cial
statements of the Group.
Classification of Liabilities as Current or
Non-current (Amendments to IAS 1)
The amendments had no impact on the
consolidated finan-
cial
statements of the Group.
Non-current Liabilities with Covenants
(Amendments to IAS 1)
The amendments had no impact on the
consolidated finan-
cial
statements of the Group.
Standards issued but not yet effective
The new and amended standards and
interpretations that are issued, but not yet effective, up to the date
of issuance of the Group’s financial statements are disclosed below. The
Group intends to adopt these standards and interpretations,
if applicable, when they become effective and has not adopted any standards early.
The following amendments are effective for the
annual reporting period beginning 1 January 2025:
• Lack of Exchangeability (Amendment to IAS 21 The
Effects
of Changes in Foreign Exchange Rates)
The following amendments are effective for the
annual reporting period beginning 1 January 2026:
• Amendments to the Classification and Measurement
of
Financial Instruments (Amendments to IFRS 9
Financial Instruments and IFRS 7)
• Contracts Referencing Nature-dependent Electricity
(Amendments to IFRS 9 and IFRS 7)
The following standards and amendments are
effective for the annual reporting period beginning 1 January 2027:
• IFRS
18 Presentation and Disclosure in Financial
Statements
• IFRS 19 Subsidiaries without Public Accountability:
Disclosures
The Group is currently assessing the effect of
these new accounting standards and amendments.
Assumptions and estimates
The IFRS include guidelines requiring the Group
to make as- sumptions
and estimates when preparing its consolidated Fi- nancial Statements. These assumptions and
estimates are continuously reviewed and are based on past experience
and other factors, including expectations regarding likely
fu- ture
developments. The most important assumptions and esti- mates relate to the actuarial calculations for
pensions and other post-employment benefits, the expected credit loss, as
well as the provisions.
Recognition
Purchases and sales of financial assets and
liabilities are recognised on the settlement day. Transactions are thus
recognised in the balance sheet mainly on the settlement
date and not on the transaction date. Derivatives, however,
are recognised on the trade date. All concluded transactions
are recorded and evaluated. Any unrealised gains or losses
resulting from valuing transactions at market value are
recog- nised in
the income statement.
Accrual of income and expenses
Interest income and interest expenses are
accrued using the effective interest rate (EIR) method and recognised as in-
come or expenses respectively. Dividends are recognised as of the date when they have been formally declared and ap- proved. Premiums and discounts arising from the issuance of bonds are
amortised over their residual term using the effec- tive interest rate method. Factoring fees are recognised when the receivable is assigned to the Group.
Financial Statements 2024 Würth Finance Group
Foreign exchange translation
The Group’s consolidated Financial Statements are present- ed in euros, which is the Group’s presentation currency. Transactions in foreign currencies are initially recorded at the functional currency spot rate at the date the transaction first qualifies for recognition. Exchange differences arising from such transactions, as well as income resulting from convert- ing monetary assets and monetary liabilities denominated in foreign currencies at the rate of exchange applicable at the balance sheet date, are recognised in the income statement.
| Conversion rates at 31 December | 2024 | 2023 |
| US dollar (USD) | 1.104 | 1.105 |
| Swiss franc (CHF) | 0.939 | 0.930 |
| British pound (GBP) | 0.827 | 0.867 |
| Canadian dollar (CAD) | 1.489 | 1.457 |
| Chinese renminbi (CNH) | 7.603 | 7.866 |
| Norwegian krone (NOK) | 11. 763 | 11.218 |
| Danish krone (DKK) | 7. 457 | 7. 455 |
| Swiss franc (CHF) – average exchange rate | 0.953 | 0.972 |
On consolidation, all assets and liabilities of the subsidiaries – with the exception of shareholders’ equity – are translated into euros at the rate of exchange prevailing at the reporting date, and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consoli- dation are recognised in other comprehensive income (OCI). On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified in profit or loss as foreign currency translation.
Financial instruments
A financial instrument is any contract that gives rise to a fi- nancial asset of one entity and a financial liability or equity instrument of another entity.
On initial recognition, financial instruments are measured at fair value. Fair value on initial recognition includes transac- tion costs directly attributable to the acquisition or issue of fi- nancial instruments, except for financial instruments carried
at fair value through profit or loss, for which transaction costs are recognised in net income in the period when they are in- curred.
Financial instruments are measured in subsequent periods ei- ther at fair value or at amortised cost using the effective inter- est rate method, depending on the financial instrument classi- fication.
The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the ex- pected life of the financial asset or liability to its carrying amount. When calculating the effective interest rate, the Group estimates future cash flows, considering all contractu- al terms of the financial instrument.
Major types of financial and non-financial instruments and their classification
Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an in- significant risk of changes in value. Cash and cash equiva- lents are valued at amortised cost.
Securities at fair value through profit or loss Within the scope of its management and performance mea- surement activities relating to a documented risk manage- ment and investment strategy, the Group measures securities as financial instruments at fair value through profit or loss. The fair value of securities that are actively traded in organ- ised financial markets is determined by reference to quoted market prices. For securities where there is no active market, fair value is determined using valuation techniques such as price quotations from securities brokers or on the basis of price models. The valuations are by their very nature de- pendent on the assumptions on which they are based. Trad- ed debt securities are carried at their clean price.
Securities at amortised cost
Securities at amortised cost are initially recognised at their ac- tual cost, which corresponds to the fair value at the time of the purchase of the security. After initial recognition, subsequent measurement is at amortised cost using the EIR method. Secu- rities at amortised cost are held to collect contractual cash flows that are solely payments of principal and interest.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. All loans and receivables are initially recognised at their actual cost, which corresponds to the fair value at the time of the loan being granted less transac- tion costs. After initial recognition, loans and receivables are subsequently measured at amortised cost less value adjust- ments using the effective interest rate method and less al- lowance for expected credit losses.
The loans are granted to related companies and the payments consist solely of interest and the principal (held to collect).
Annual Report 2024 Würth Finance Group
10
11
The Group records an allowance for expected
credit loss (ECL) for all loans. The ECL allowance is based on the credit
losses expected to arise over the life of the asset (the lifetime
expected credit losses or LTECL), unless there has been no
significant increase in credit risk since origination, in which
case the allowance is based on the 12 months’
expected credit losses (12mECL).
Derivative financial instruments
Derivative financial instruments are financial
contracts that derive their value from underlying changes in interest rates,
foreign exchange rates or other financial instruments. The
Group acquires derivative financial instruments to manage
exposures to interest, currency and other market risks.
Derivative financial instruments are classified as held-for-
trading financial assets / financial liabilities, unless they are
included in hedge accounting as hedging instruments.
Derivative financial instruments are recognised
at fair value at each balance sheet date and reported in the balance
sheet under positive fair values of derivative instruments or
negative fair values of derivative instruments. Financial
as- sets and
financial liabilities are offset according to the ISDA
netting agreements based on the conditions set therein and thus
the net amount is reported in the consolidated bal- ance
sheet if there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to set- tle on a net basis, to realise the assets and
settle the liabil- ities simultaneously.
The fair values recognised in the balance sheet
reflect the net fair value of the instruments after the cash settlement.
Derivative financial instruments and hedge
accounting The Group designates certain derivatives held for risk man- agement
purposes as cash flow hedges or fair value hedges:
• Fair value hedges when hedging the exposure to
changes
in the fair value of a recognised asset or
liability or an unrecognised firm commitment
• Cash flow hedges when hedging the exposure to
variability in cash flows that is attributable
either to a particular risk associated with a recognised asset or
liability or to a highly probable forecasted transaction, or
to the foreign currency risk in an unrecognised firm commitment
The Group documents all hedging relationships
and its risk management objectives, along with its strategy for carrying
out the hedge transactions.
The Group assesses whether the derivatives used
in hedging transactions are highly effective in offsetting changes in the
cash flow or the fair value of hedged items, both at inception
and over the life of the hedge.
If these hedging instruments expire, are sold
or no longer meet the criteria for hedge accounting, the amounts previ-
ously recognised in OCI are reclassified to the income state-
ment as net gains or losses on other financial instruments
dur- ing the
periods when the variability in the cash flows or fair values of
the hedged item affects net income. However, if a
forecasted transaction is no longer expected to
occur, the cu- mulative
gain or loss that was reported in equity is immedi- ately transferred to the income statement under
net gains or losses on other financial instruments.
Bonds issued
Issued bonds are initially recognised at the
fair value of the consideration received, net of directly attributable transac-
tion cost. They are subsequently reported in the balance
sheet at amortised cost using the effective interest rate
method. The amortisation of bond-issuing cost (discount) is
recognised in the income statement over the duration of the
term using the effective interest rate method. Bonds represent
non-current liabilities. As soon as the remaining term is less
than 12 months, the respective bond is reported as a current
liability.
Property, plant and equipment
Property, plant and equipment comprise office
furniture and equipment, interior installations, vehicles, ICT hardware and
works of art. These assets are capitalised if their acquisition
or production cost can be reliably determined, if they will
bring future economic benefit, and if the anticipated usage
extends beyond the reporting period.
Property, plant and equipment are stated at
cost, net of accu-
mulated
amortisation and accumulated impairment losses, if any.
Amortisation is calculated on a straight-line basis over the
estimated useful life of the assets:
| Office furniture and equipment | 2–5 years |
| Interior installations | 5 years |
| Vehicles | 3–4 years |
| ICT hardware | 2–3 years |
No amortisation is calculated on works of art.
The amortisation periods and methods are reviewed at least
at each financial year-end.
Intangible assets
Intangible assets comprise software, among
other items. In-
tangible assets acquired separately are initially measured at
cost. The cost of intangible assets acquired in a business
com- bination
is their fair value at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses.
Intangible assets are amortised over their
useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
Amortisation is calculated on a straight-line
basis over the es-
timated
useful lives of the assets:
| EDP software | 2 years |
| Activated customer base | 10 years |
Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the
assets are accounted for by changing the amortisation peri-
Financial Statements 2024 Würth Finance Group
od or method, as appropriate, and treated as changes in ac- counting estimates.
The amortisation expense is recognised in the income state- ment in the expense category amortisation expenses. The amortisation period and amortisation method are reviewed at least at each financial year-end.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration.
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabil-ities to make lease payments and right-of-use assets repre- senting the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commence- ment date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated amortisation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabili- ties recognised, initial direct costs incurred, and lease pay- ments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depre- ciated on a straight-line basis over the shorter of their esti- mated useful life and the lease term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recog- nises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease pay- ments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guaran- tees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to ter- minate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period in which the event or condition that triggers the payment oc- curs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commence- ment date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the
in-substance fixed lease payments or a change in the assess- ment to purchase the underlying asset.
Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemp- tion to its short-term leases of machinery and equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recogni- tion exemption to leases of office equipment that are consid- ered to be of low value. Lease payments on short-term leas- es and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Impairment of assets
The value of property, plant and equipment and other fixed assets is reviewed for impairment at least once a year or if significant events or changes in circumstances suggest that their book value is too high. Where the carrying amount of an asset exceeds its recoverable amount, the asset is consid- ered impaired and is written down to its recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s fair value less the cost to sell, and its value in use.
Provisions
Provisions are recognised in the balance sheet when the Group has a present obligation to a third party as a result of a past event, it is probable that an outflow of resources em- bodying economic benefits will be required to settle the obli- gation, and a reliable estimate can be made of the amount of the obligation.
Taxes and deferred taxes
Current income taxes are calculated based on the taxable income in the fiscal year and in accordance with the applica- ble tax laws in the
Netherlands
and Switzerland, and are recognised as an expense in the period in which the income is earned. They are stated as income tax receivables and in- come tax payables in the balance sheet.
Tax effects arising from temporary differences between the carrying value of assets and liabilities reported in the bal- ance sheet and their corresponding tax values are recog- nised separately as either deferred tax assets or deferred tax liabilities. Deferred income tax assets arising from tempo- rary differences and from loss carryforwards eligible for off- set are recognised only if it seems likely that in future suffi- cient taxable profits will be available against which those loss carryforwards can be offset.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the asset is realised or the liability is settled.
Pensions and other post-employment benefits The Group operates a number of pension plans for its em- ployees. These are treated as defined benefit plans in ac- cordance with IAS 19. Actuarial gains and losses are recog-
Annual Report 2024 Würth Finance Group
12
13
nised immediately in the balance sheet with a
corresponding debit or credit to retained earnings through OCI in the
peri- od in
which they occur. The impact of the effect is shown in the
consolidated statement of comprehensive income.
For separately funded defined benefit plans, the
degree of coverage of the fair value of the benefit obligations com-
pared with the plan’s assets, valued at market prices, is re-
ported in the balance sheet as a liability or an asset, taking
into consideration claims that still have to be offset and un-
recorded actuarial gains or losses (the projected unit credit
method).
Transactions with related companies
The Group is responsible for concentrating and
optimising the worldwide cash flows within the Würth Group, managing
the financial risks and handling the Würth Group financing.
In this connection, by its very nature the Group carries out a
very wide variety of transactions with associated companies,
that is, with companies belonging to the Würth Group. Only
a relatively small proportion of transactions are carried out
with third parties outside the Würth Group.
Transactions performed within the Group are
eliminated for the purpose of these consolidated Financial Statements. All
group transactions are consolidated within the framework of
the consolidated financial statements of the Würth Group.
Segments
The Group generates income through a wide range
of activi- ties, which are divided into the following segments:
• Inhouse Banking with Group Financing, Trading,
Securities
Investments, Central Settlement and Central
Services
• External Financial Services with Pension Plans & Insurance
This structure forms the basis for the primary
segment report- ing. Segment reporting by geographic area is not consid- ered
meaningful as the services are provided only from the Netherlands and Switzerland.
The Group Financing segment borrows funds from
the money and capital markets and places them at the disposal of the
Würth Group companies in the form of loans and credits.
The Trading segment purchases and sells
currency and inter- est rate instruments as well as securities for
the purpose of generating financial income and capital gains. The activities
relating to payment for goods purchased by Würth Group
companies, together with the delcredere and collection ser-
vices for suppliers of goods, are summarised under Central
Settlement. Some of the Group’s excess funds are allocated
to a securities portfolio, which is managed through Würth
In- vest AG.
The results of these asset management activities are disclosed
in the segment Securities Investments. The Pension Plans
& Insurance segment comprises the services provided by Würth
Financial Services AG to third parties, which in- clude financial and pension plan consulting and
insurance brokerage for corporate and private clients.
Direct income and expense are allocated to the
appropriate segment. Transfers between the business units are reported
at fair value, which corresponds to the amounts that would
be charged to third parties for similar services. Income and
expense arising from activities that are not directly at-
tributable to the segments are booked to Central Services.
Cash flow statement
The cash flow statement has been prepared in
accordance with the indirect method.
Financial Statements 2024 Würth Finance Group
3 Intangible assets/right-of-use assets/property, plant and equipment
Intangible assets /right-of-use assets /property, plant and equipment comprise the following items:
At 31 December 2024
| Additions | ||||||||
| (disposals) | ||||||||
| Acquisition | incl. asset | Acquisition | Accum. | Asset | Amortisation | Accum. | Net book | |
| cost | retirement | cost | amortisation | retirement | for the year | amortisation | value | |
| in TEUR | 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | 2024 | 2024 |
| Intangible assets | ||||||||
| Software | 2,887 | –274 | 2,613 | –2,515 | 424 | –156 | –2,247 | 366 |
| Activated customer base | 17, 778 | –172 | 17,606 | –16,715 | 158 | –177 | –16,734 | 872 |
| Total intangible assets | 20,665 | –446 | 20,219 | –19,230 | 582 | –333 | –18,981 | 1,238 |
| Right-of-use assets | ||||||||
| Right-of-use land and buildings | 7, 746 | 2,048 | 9,794 | –6,167 | 147 | –1,551 | –7, 571 | 2,223 |
| Right-of-use vehicles | 69 | –1 | 68 | –27 | 0 | –17 | –44 | 24 |
| Total right-of-use assets | 7,815 | 2,047 | 9,862 | –6,194 | 147 | –1,568 | –7, 615 | 2,247 |
| Property, plant and equipment | ||||||||
| Vehicles | 643 | 143 | 786 | –504 | 138 | –115 | –481 | 305 |
| Art objects | 34 | 0 | 34 | 0 | 0 | 0 | 0 | 34 |
| Office equipment/installations | 3,327 | 6 | 3,333 | –3,229 | 21 | –67 | –3,275 | 58 |
| Total property, plant and equipment | 4,004 | 149 | 4,153 | –3,733 | 159 | –182 | –3,756 | 397 |
At 31 December 2023
| Additions | ||||||||
| (disposals) | ||||||||
| Acquisition | incl. asset | Acquisition | Accum. | Asset | Amortisation | Accum. | Net book | |
| cost | retirement | cost | amortisation | retirement | for the year | amortisation | value | |
| in TEUR | 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | 2023 | 2023 |
| Intangible assets | ||||||||
| Software | 2,579 | 308 | 2,887 | –2,311 | –65 | –139 | –2,515 | 372 |
| Activated customer base | 16,738 | 1,040 | 17, 7 78 | –15,565 | –976 | –174 | –16,715 | 1,063 |
| Total intangible assets | 19,317 | 1,348 | 20,665 | –17,876 | –1,041 | –313 | –19,230 | 1,435 |
| Right-of-use assets | ||||||||
| Right-of-use land and buildings | 6,283 | 1,463 | 7, 746 | –4,589 | –77 | –1,500 | –6,166 | 1,580 |
| Right-of-use vehicles | 65 | 4 | 69 | –10 | –1 | –17 | –28 | 41 |
| Total right-of-use assets | 6,348 | 1,467 | 7,815 | –4,599 | –78 | –1,517 | –6,194 | 1,621 |
| Property, plant and equipment | ||||||||
| Vehicles | 631 | 12 | 643 | –400 | –9 | –95 | –504 | 139 |
| Art objects | 34 | 0 | 34 | 0 | 0 | 0 | 0 | 34 |
| Office equipment/installations | 3,201 | 126 | 3,327 | –3,035 | –101 | –93 | –3,229 | 98 |
| Total property, plant and equipment | 3,866 | 138 | 4,004 | –3,435 | –110 | –188 | –3,733 | 271 |
Annual Report 2024 Würth Finance Group
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| in TEUR | Right-of-use assets |
| As at 1 January 2024 | 1,621 |
| Additions | 2,047 |
| Amortisation expense | –1,421 |
| As at 31 December 2024 | 2,247 |
| in TEUR | Lease liabilities |
| As at 1 January 2024 | 1,645 |
| Accretion of interest | –44 |
| Payments | 670 |
| As at 31 December 2024 | 2,271 |
| in TEUR | Lease expenses |
| Amortisation expense of right-of-use assets | –1,421 |
| Interest expense on lease liabilities | –44 |
| Expense relating to short-term leases (incl. in cost of sales) | 0 |
| Expense relating to leases of low-value assets (incl. admin. expenses) | 0 |
| Variable lease payments (incl. in cost of sales) | 0 |
| Total amount recognised in income statement | –1,465 |
4 Loans to related parties
| in TEUR | 2024 | 2023 |
| Balance at 1 January (excl. ECL) | 1,393,722 | 1,562,847 |
| New loans granted, increase in existing loans | 292,905 | 303,882 |
| Repayments | –62,318 | –69,167 |
| Currency and other adjustments | 14,291 | –3,130 |
| Term reclassification | –471,582 | –400,710 |
| Total loans to related parties (gross amount) | 1,167,018 | 1,393,722 |
| Expected credit loss | –2,367 | –3,952 |
| Total loans to related parties | 1,164,651 | 1,389,770 |
Long-term loans to related companies, granted
in foreign currencies, are translated into euros at the year-end conversion rates.
The average interest rates for the major currencies at 31 December are:
| 2024 | 2023 | |
| EUR | 3.11% | 2.56% |
| CHF | 1.70% | 1.40% |
| USD | 3.70% | 3.96% |
| DKK | 1.61% | 1.42% |
Financial Statements 2024 Würth Finance Group
5 Other assets
| in TEUR | 2024 | 2023 |
| Receivables from third parties | 5,255 | 5,567 |
| Other assets | 157 | 157 |
| Total other assets | 5,412 | 5,724 |
6 Securities at fair value through profit or loss
| Market value | Acquisition cost | Market value | Acquisition cost | |
| in TEUR | 2024 | 2024 | 2023 | 2023 |
| Equity/equity funds | 13,428 | 13,399 | 11,314 | 9,807 |
| Investment-grade bonds /bond funds | 97,113 | 96,004 | 99,429 | 95,393 |
| Sub-investment-grade bonds | 1,153 | 1,127 | 1,990 | 1,901 |
| Commodities | 1,913 | 1,895 | 2,049 | 1,892 |
| Total securities | 113,607 | 112, 425 | 114,782 | 108,993 |
7 Securities at amortised cost
The securities at amortised cost line item refers to investments in private placements issued by Swiss cities and cantons.
8 Bonds issued
The company issued a EUR 500 million bond under its EUR 4,000 million EMTN programme. The bond was issued on 28 October 2024 and has a term of 6⅚ years and an annual coupon of 3.000%.
Overview of bonds issued at 31 December 2024
| in TEUR | Notional | Notional | Premium/ | ||
| Maturity | amount | amount TEUR | discount | Total | Coupon |
| Short-term | |||||
| 26.05.2025 | TEUR 500.000 | 500,000 | –1,377 | 498,623 | 1.000% |
| Total book value short-term bond liabilities | 498,623 | ||||
| Long-term | |||||
| 16.11.2026 | TCHF 300,000 | 306,639 | 15,765 | 322,404 | 2.100% |
| 22.11.2027 | TEUR 750,000 | 750,000 | –1,510 | 748,490 | 0.750% |
| 23.08.2030 | TEUR 600,000 | 600,000 | –12,030 | 587,970 | 2.125% |
| 28.08.2031 | TEUR 500,000 | 500,000 | –3,100 | 496,900 | 3.000% |
| Total book value long-term bondliabilities | 2,155,764 | ||||
| Total book value bonds issued | 2,654,387 |
| in TEUR | Notional | ||
| Maturity | amount | Market value | Coupon |
| 26.05.2025 | 500,000 | 496,315 | 1.000% |
| 16.11.2026 | 306,639 | 328,654 | 2.100% |
| 22.11.2027 | 750,000 | 710,993 | 0.750% |
| 23.08.2030 | 600,000 | 583,722 | 2.125% |
| 28.08.2031 | 500,000 | 502,500 | 3.000% |
| Total market value at 31 December | 2,622,184 |
The notional amounts are presented based on the exchange rate as per issuance date.
Annual Report 2024 Würth Finance Group
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Overview of bonds issued at 31 December 2023
| in TEUR | Notional | Notional | Premium/ | ||
| Maturity | amount | amount TEUR | discount | Total | Coupon |
| Long-term | |||||
| 26.05.2025 | TEUR 500,000 | 500,000 | –5,502 | 494,498 | 1.000% |
| 16.11.2026 | TCHF 300,000 | 306,639 | 17,123 | 323,762 | 2.100% |
| 22.11.2027 | TEUR 750,000 | 750,000 | –2,032 | 747,968 | 0.750% |
| 23.08.2030 | TEUR 600,000 | 600,000 | –16,380 | 583,620 | 2.125% |
| Total book value long-term bondliabilities | 2,149,848 | ||||
| Total book value bonds issued | 2,149,848 |
| in TEUR | Notional | ||
| Maturity | amount | Market value | Coupon |
| 26.05.2025 | 500,000 | 484,820 | 1.000% |
| 16.11.2026 | 306,639 | 328,153 | 2.100% |
| 22.11.2027 | 750,000 | 693,870 | 0.750% |
| 23.08.2030 | 600,000 | 566,214 | 2.125% |
| Total market value at 31 December | 2,073,057 |
The market values shown in the tables are based on quoted prices in active markets (source: Bloomberg).
The issued bonds are irrevocably and unconditionally guaranteed by joint and several guarantees of Adolf Würth GmbH & Co. KG, Künzelsau.
The effective interest rates do not significantly differ from the nominal interest rates.
9 Other liabilities
| in TEUR | 2024 | 2023 |
| Payables for deliveries and services | 1,658 | 2,673 |
| of which to third parties | 751 | 1,826 |
| of which to related parties | 907 | 847 |
| Compensation-related liabilities | 5,629 | 5,002 |
| Other liabilities | 4,284 | 2,760 |
| Total other liabilities | 11, 571 | 10,435 |
Other liabilities primarily comprise accruals for services received but not invoiced during the financial year.
Financial Statements 2024 Würth Finance Group
10 Interest income and expenses
2024
| Parent | Associated | Third | ||
| in TEUR | Total | companies | companies | parties |
| Interest income | ||||
| Interest income from financing activities at amortised cost | 78,034 | 0 | 78,034 | 0 |
| Interest income from financing leasing activities at amortised cost | 3,329 | 0 | 3,329 | 0 |
| Interest income from liquid assets at amortised cost | 63,590 | 55 | 26,546 | 36,989 |
| Interest income from current accounts | 26,601 | 55 | 26,546 | 0 |
| Interest income from bank accounts, time deposits and money market funds | 36,989 | 0 | 0 | 36,989 |
| Interest income from financial instruments at fair value through profit or loss | 24,770 | 0 | 3,325 | 21,445 |
| Valuation gains/(losses) from interest rate and cross-currency swaps (unrealised) | 73 | 0 | 1,269 | –1,196 |
| Interest income from interest rate and cross-currency swaps | 21,660 | 0 | 960 | 20,700 |
| Other interest income from financial instruments | 3,037 | 0 | 1,096 | 1,941 |
| Total interest income | 169,723 | 55 | 111,234 | 58,434 |
| Interest expenses | ||||
| Interest expenses for current accounts and time deposits | 40,876 | 15,299 | 25,577 | 0 |
| Interest expenses for bonds issued | 45,819 | 3,824 | 0 | 41,995 |
| Interest expenses from financial instruments | 18,429 | 208 | 2,612 | 15,609 |
| Interest expenses from interest rate and cross-currency swaps | 17,812 | 0 | 2,339 | 15,473 |
| Other interest expenses from financial instruments | 617 | 208 | 273 | 136 |
| Other interest expenses (third parties) | 702 | 0 | 3 | 699 |
| Total interest expenses | 105,826 | 19,331 | 28,192 | 58,303 |
2023
| Parent | Associated | Third | ||
| in TEUR | Total | companies | companies | parties |
| Interest income | ||||
| Interest income from financing activities at amortised cost | 68,675 | 0 | 68,660 | 15 |
| Interest income from financing leasing activities at amortised cost | 3,118 | 0 | 3,118 | 0 |
| Interest income from liquid assets at amortised cost | 53,828 | 5 | 29,118 | 24,705 |
| Interest income from current accounts | 29,123 | 5 | 29,118 | 0 |
| Interest income from bank accounts, time deposits and money market funds | 24,705 | 0 | 0 | 24,705 |
| Interest income from financial instruments at fair value through profit or loss | 22,768 | 0 | 5,485 | 17,283 |
| Valuation (gains) /losses from interest rate and cross-currency swaps (unrealised) | 0 | 0 | 0 | 0 |
| Interest income from interest rate and cross-currency swaps | 20,524 | 0 | 4,613 | 15,911 |
| Other interest income from financial instruments | 2,244 | 0 | 872 | 1,372 |
| Total interest income | 148,389 | 5 | 106,381 | 42,003 |
| Interest expenses | ||||
| Interest expenses for current accounts and time deposits | 34,647 | 12,187 | 22,434 | 26 |
| Interest expenses for bonds issued | 38,108 | 2,769 | 0 | 35,339 |
| Interest expenses from financial instruments | 23,992 | 404 | 5,687 | 17,901 |
| Interest expenses from interest rate and cross-currency swaps | 22,002 | 0 | 4,560 | 17, 442 |
| Other interest expenses from financial instruments | 1,990 | 404 | 1,127 | 459 |
| Other interest expenses (third parties) | 798 | 0 | 3 | 795 |
| Total interest expenses | 97, 545 | 15,360 | 28,124 | 54,061 |
Annual Report 2024 Würth Finance Group
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11 Income from commission and service fee activities
| in TEUR | 2024 | 2023 |
| Acquisition commissions, brokerage fees | 17,80 0 | 15,828 |
| Collection and delcredere agreements | 31,705 | 33,736 |
| Total income from commission and service fee activities | 49,505 | 49,564 |
12 Income from trading activities and financial instruments
| in TEUR | 2024 | 2023 |
| Income from securities transactions | 6,577 | 8,315 |
| Income from foreign exchange transactions | 16,963 | 12,061 |
| Total income from trading activities and financial instruments | 23,540 | 20,376 |
13 Other ordinary income from related parties
Other ordinary income comprised TEUR 910 (2023: TEUR 592) in income from the e-payment services provided to other Würth Group companies, as well as fees charged for other services rendered.
14 Personnel expenses
At 31 December personnel expenses were as follows:
| in TEUR | 2024 | 2023 |
| Wages and salaries | 22,724 | 20,341 |
| Pension cost | 1,247 | 898 |
| Social securitycost | 1,829 | 1,678 |
| Other employee cost | 938 | 818 |
| Total personnel expenses | 26,738 | 23,735 |
Pension plan
The Group had no direct or indirect share or option-based remuneration in favour of employees.
The pension plan in the Netherlands consists of a defined contribution plan. The salary over which pension was built up was maximised at TEUR 120 (2023: TEUR 112). The premium was partly paid by the employer.
In Switzerland, the individual Group companies participated in a semi-autonomous pension scheme in which several Swiss Würth entities participated. In this plan, actuarial risks (longevity, disability and death) are vested in an insurance company.
The investment risks remained with the pension scheme, which was responsible for the asset management. The pen- sion scheme was an addition to the statutory social security insurance.
The employees paid a savings contribution amounting to 1.5%–10% of their insured annual salary. The employees’ contribution amount is age-related. In addition, the employ- ees had the option of paying voluntary contributions.
In another scheme for authorised representatives and Man- aging Directors in Switzerland, the annual employee contri- butions amounted to 50% of the total sum.
Financial Statements 2024 Würth Finance Group
The following figures provide an overview of the financial situation regarding the defined benefit plans as at 31 December:
| in TEUR | 2024 | 2023 |
| Pension cost | ||
| Current service cost | 1,286 | 904 |
| Past service cost related to plan amendments | –56 | 0 |
| Net interest expense /(income) | 67 | 35 |
| Foreign currency translation | –50 | –41 |
| Pension cost recognised in income statement | 1,247 | 898 |
| Revaluation of defined benefit plan | ||
| Actuarial (gains)/losses due to changes in demographic assumptions | 3,578 | 3,324 |
| Actuarial (gains)/losses due to changes based on experience | 1,251 | 1,619 |
| Return on plan assets (less interest income) | –2,727 | –1,739 |
| Foreign currency translation | 7 | 235 |
| Revaluation recognised in OCI | 2,109 | 3,439 |
| Liabilities for pension plan | ||
| Defined benefit obligation at 31 December | 57, 414 | 52,364 |
| Fair value of plan assets at 31 December | –50,187 | –47,072 |
| Net liabilities at 31 December | 7, 227 | 5,292 |
| Changes in the benefit obligations | ||
| Benefit obligation at 1 January | 52,364 | 42,106 |
| Interest expense | 756 | 947 |
| Current service cost | 1,286 | 904 |
| Plan participant contributions | 1,226 | 1,153 |
| Actuarial (gains)/losses due to changes in demographic assumptions | 3,578 | 3,324 |
| Actuarial (gains)/losses due to changes based on experience | 1,251 | 1,619 |
| Past service cost related to plan amendments | –56 | 0 |
| Benefit payments | –2,567 | –637 |
| Foreign currency translation | –424 | 2,948 |
| Benefit obligation at 31 December | 57, 414 | 52,364 |
| Changes in the plan assets | ||
| Fair value of plan assets at 1 January | 47,081 | 39,946 |
| Interest income | 689 | 912 |
| Return on plan assets (less interest income) | 2,727 | 1,739 |
| Plan participant contributions | 1,226 | 1,153 |
| Employer contributions | 1,366 | 1,285 |
| Benefit payments | –2,567 | –637 |
| Foreign currency translation | –335 | 2,674 |
| Fair value of plan assets at 31 December | 50,187 | 47,072 |
| Assumptions | ||
| Discount rate | 1.50% | 1.50% |
| Expected return on plan assets | 1.50% | 2.20% |
| Future salary increases up to age 54 P /A | 1.50% | 1.50% |
| Future salary increases from age 55 P /A | 0.00% | 0.00% |
| Future pension increases | 0.00% | 0.00% |
| Probability of termination of service | BVG 2020/Generation table | |
Annual Report 2024 Würth Finance Group
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Sensitivity of benefit obligation
| in TEUR | Defined benefit | Gross service |
| Defined changes in assumptions | obligation | cost |
| Assumption at 31.12.2024 | 57, 414 | 2,868 |
| Discount rate | ||
| Increase by 25 basis points | 54,958 | 2,765 |
| Decrease by 25 basis points | 59,152 | 2,978 |
| Rate of salary increase | ||
| Increase by 50 basis points | 57,575 | 2,868 |
| Decrease by 50 basis points | 56,430 | 2,868 |
Plan asset allocation by category:
| 2024 | 2023 | |
| Equities | 26.8% | 23.1% |
| Bonds | 37.8% | 40.1% |
| Real estate | 24.6% | 26.7% |
| Other | 10.8% | 10.1% |
| Total of plan asset allocation | 100.0% | 100.0% |
The plan assets of the pension funds consisted
either of credit balances with an insurance company or a semi- autonomous pension scheme.
Compensation of key management personnel of
the Group In 2024, fees of TEUR 400 were paid to members of the
Board of Directors (2023: TEUR 350).
The key management comprised the Managing
Directors of the Group companies (2024: 6 persons; 2023: 6 persons).
For financial year 2025, the Group anticipates
contributions to defined benefit pension plans amounting to approximately
TEUR 2,868. The average duration of the defined benefit
plan obligation at the end of the reporting period is 14.9
years (2023: 14.2 years).
Remuneration for the Managing Directors of the
Group companies totalled TEUR 3,427 in 2024 (2023: TEUR
3,229).
In 2024 and 2023, no other forms of
compensation were paid to
key management staff.
| in TEUR | 2024 | 2023 |
| Short-term employee benefits | 3,427 | 3,229 |
| Total compensation paid to key management personnel | 3,427 | 3,229 |
Financial Statements 2024 Würth Finance Group
15 Income tax
Tax positions are, inherently to operating
internationally and across borders, in certain cases uncertain.
Accruals and/or provisions were made where deemed necessary. The Würth
Finance Group is exposed to tax risks which amongst others
could result in double taxation. The source of these risks
could originate from local tax rules and regulations as well
as international and EU regulatory frameworks. These in-
clude transfer pricing risks on internal cross-border deliveries
of services, tax risks related to acquisitions and divestments,
tax risks related to permanent establishments, tax risks relat-
ing to tax losses, interest and tax credits carried forward and
potential changes in tax law that could result in higher tax
expenses and payments.
The Group is subject to income tax in the
Netherlands and in Switzerland. All taxes that were due or are payable in the
future relating to the financial years up to and
including 2024 are accrued as at 31 December 2024.
The relevant tax rate for the Netherlands was
25.8% (2023: 25.8%). Due to separate taxation of the head office in the Netherlands, the branch office in
Switzerland and the subsidiaries in accordance with valid legislation in the
corre- sponding
countries, there was a difference between the ef- fective tax rate and the relevant tax rate for
the Netherlands. The relevant tax rates in Switzerland were 8.5% (2023: 8.5%) on a
federal level and 8.2% (2023: 8.2%) on a can- tonal
level.
The withholding tax credits not utilised in the
Netherlands amounted to TEUR 5,822 (2023: TEUR 6,262) and are avail- able for
carryforward indefinitely.
The reconciliation of income taxes is composed
as follows:
| in TEUR | 2024 | 2023 |
| Income before taxes | 108,180 | 98,201 |
| Tax expense using the assumed average tax rate | 27,910 | 25,337 |
| Difference between actual and assumed tax rates | -5,529 | –6,917 |
| Withholding tax payments | 0 | 160 |
| (De)recognition deferred taxes | 0 | –165 |
| Tax effects related to prior years | -451 | 717 |
| Net effective tax expenses | 21,930 | 19,132 |
The assumed average tax rate above is 25.8% (2023:
25.8%), while the net effective tax rate is 20.3% (2023: 19.5%).
| in TEUR | 2024 | 2023 |
| Deferred tax assets on cash flow hedges | 935 | 1,265 |
| Deferred tax assets from loss carryforwards | 248 | 516 |
| Deferred tax assets | 1,183 | 1,781 |
| in TEUR | 2024 | 2023 |
| Deferred tax liabilities on intangible assets | 385 | 397 |
| Deferred tax liabilities | 385 | 397 |
Annual Report 2024 Würth Finance Group
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23
16 Transactions with related parties
As the operative treasury unit of the Würth
Group, the Group is responsible for concentrating and optimising the worldwide
flow of payments, managing the financial risks and handling
the financing of the Würth Group companies. In
addition to all the companies belonging to the Würth
Group, the related parties also included the
members of the Board of Directors and Management of the Group, as well as
their families and companies closely associated with them.
Related party transactions were based on arm’s length terms
and conditions.
At 31 December 2024
| Parent | Associated | ||
| in TEUR | Total | companies | companies |
| Receivables from relatedparties | |||
| Loans to related companies | 1,164,651 | 0 | 1,164,651 |
| Receivables from related companies | 1,723,063 | 26,938 | 1,696,125 |
| Current accounts | 604,728 | 17,082 | 587,646 |
| Short-term loans | 935,917 | 0 | 935,917 |
| Factoring | 182,418 | 9,856 | 172,562 |
| Total receivables from related parties | 2,887, 714 | 26,938 | 2,860,776 |
| Payables to related parties | |||
| Payables to related companies | 1,422,468 | 401,593 | 1,020,875 |
| Current accounts | 697,194 | 1,593 | 695,601 |
| Fixed-term deposits | 725,274 | 400,000 | 325,274 |
| Other payables to related parties | 907 | 0 | 907 |
| Total payables to related parties | 1,423,375 | 401,593 | 1,021,782 |
At 31 December 2023
| Parent | Associated | ||
| in TEUR | Total | companies | companies |
| Receivables from relatedparties | |||
| Loans to related companies | 1,389,770 | 0 | 1,389,770 |
| Receivables from related companies | 1,297,954 | 11, 457 | 1,286,497 |
| Current accounts | 478,638 | 0 | 478,638 |
| Short-term loans | 610,300 | 0 | 610,300 |
| Factoring | 209,016 | 11, 457 | 197, 559 |
| Total receivables from related parties | 2,687,724 | 11, 457 | 2,676,267 |
| Payables to related parties | |||
| Payables to related companies | 1,474,770 | 598,164 | 876,606 |
| Current accounts | 829,508 | 198,164 | 631,344 |
| Fixed-term deposits | 645,262 | 400,000 | 245,262 |
| Other payables to related parties | 847 | 0 | 847 |
| Total payables to related parties | 1,475,617 | 598,164 | 877, 453 |
The receivables from related companies
(short-term loans) above include an amount of TEUR 737 (2023: TEUR 894)
related to the expected credit loss (ECL). Reference is made to Note
18.
Financial Statements 2024 Würth Finance Group
17 Commitments and contingencies
The Group has issued guarantees, letters of
comfort and let-
ters of
credit. These represent commitments and contingen- cies in favour of third parties for related
company liabilities. As at 31 December 2023, the contingent
liabilities included
contractual guarantees in connection with a
planned acquisi-
tion by
the Würth Group. The lending commitments, which had been
guaranteed but not yet utilised, are disclosed at nominal
value.
| in TEUR | 2024 | 2023 |
| Guarantees, letters of comfort, letters of credit | 211,397 | 458,972 |
| Total contingent liabilities | 211,397 | 458,972 |
| in TEUR | 2024 | 2023 |
| Unutilised lending commitments | 79,513 | 3,785 |
| Total unutilised lending commitments | 79,513 | 3,785 |
18 Financial instruments and risk management
a) Financial risk management
Financial risks are inherent in the Group’s
business activities but are
carefully measured, controlled and monitored by means of
a systematic risk management process. To provide secure
auditing and transparent information, a strict segrega- tion was
made between the functions of bodies that take risks and those
that monitor risks. The financial risks were measured and
monitored without restriction by the Group’s risk con- trolling
bodies. The control of financial risks was effected on the basis
of internal directives defined in writing or with refer- ence to strategic guidelines for action.
Amendments to the in-
ternal directives were made by a defined process
and must be approved by the Group’s supervisory bodies.
In order to mitigate the financial risks and
optimise income on the financial resources, the Group entered into transactions
with derivative financial instruments. The Group expected that
any reduction in value of one such instrument
will generally be compensated by a corresponding increase in the value of the underlying hedged transaction.
The financial risks were limited by determining
the authorised instruments and by adhering to a limit system on
a daily basis. Corresponding reporting by the bodies which
control the risk for the attention of management was effected daily. The man-
agement of market risks (foreign currency, interest rate, securi-
ty price), credit risks and liquidity risks is described below.
Foreign currency risk
Due to its operating activities, the Group
enters into foreign currency transactions for companies of the Würth
Group worldwide and was therefore exposed to exchange rate fluc- tuations.
The Group deems foreign currency risks to mean the loss
risk on the reported assets and income arising from the
change in the relationship between the exchange rates of the
exposure currency and the reporting/functional cur- rency.
The Group set individual limits for each
currency or for each geographical region in order to control foreign
currency risks. The instruments used to control these risks included
spot transactions, forward transactions, currency swaps,
cross-currency swaps and currency options. The positions
were valued and monitored on a daily basis.
Sensitivity analysis for material foreign currency posi- tions at 31 December
The following table discloses the sensitivity
of the Group’s profit before tax to changes in the fair value of monetary
as- sets and
liabilities triggered by a reasonably possible change in
the exchange rate, with all other variables held constant.
The table reflects the most important currencies for loans and
deposits for the Würth Finance Group.
| 2024 | 2023 | |||
| Market scenario | Impact on profit | Market scenario | Impact on profit | |
| Currency | (in TEUR) | (in TEUR) | ||
| CHF | 10% | 1,767 | 10% | 1,837 |
| –ꢀ10% | –1,767 | –ꢀ10% | –1,837 | |
| USD | 10% | 1,509 | 10% | 2,451 |
| –ꢀ10% | –1,509 | –ꢀ10% | –2,451 | |
| GBP | 10% | 7 | 10% | 1 |
| –ꢀ10% | –7 | –ꢀ10% | –1 | |
| CAD | 10% | 64 | 10% | 62 |
| –ꢀ10% | –64 | –ꢀ10% | –62 | |
| CNY | 10% | –4 | 10% | 4 |
| –ꢀ10% | 4 | –ꢀ10% | –4 | |
| DKK | 10% | 38 | 10% | 61 |
| –ꢀ10% | –38 | –ꢀ10% | –61 | |
| NOK | 10% | 76 | 10% | 80 |
| –ꢀ10% | –76 | –ꢀ10% | –80 | |
Annual Report 2024 Würth Finance Group
24
25
Balance sheet by currency at 31 December 2024
This overview is included in the financial statements to reconcile the translation to the presentation currency of the consolidat- ed Financial Statements.
| Amounts in TEUR countervalue | ||||||
| in TEUR | Total | EUR | USD | CHF | DKK | Others |
| ASSETS | ||||||
| Non-current assets | ||||||
| Intangible assets | 1,238 | 366 | 0 | 872 | 0 | 0 |
| Right-of-use assets | 2,247 | 1,388 | 0 | 859 | 0 | 0 |
| Property, plant and equipment | 397 | 80 | 0 | 317 | 0 | 0 |
| Loans to related companies | 1,164,651 | 750,286 | 301,165 | 93,362 | 3,212 | 16,626 |
| Positive fair values of derivative instruments | 5,293 | 2,087 | 0 | 3,133 | 10 | 63 |
| Deferred tax assets | 1,183 | 935 | 0 | 248 | 0 | 0 |
| Total non-current assets | 1,175,009 | 755,142 | 301,165 | 98,791 | 3,222 | 16,689 |
| Current assets | ||||||
| Receivables from related companies | 1,723,063 | 1,062,480 | 230,748 | 165, 711 | 51,327 | 212,797 |
| Positive fair values of derivative instruments | 12,713 | –1,206 | 2,843 | 5,581 | 14 | 5,481 |
| Other assets | 5,412 | 1,800 | 15 | 3,596 | 0 | 1 |
| Income tax receivables | 0 | 0 | 0 | 0 | 0 | 0 |
| Accrued income and prepaid expenses | 16,186 | 13,592 | –617 | 1,375 | 9 | 1,827 |
| Securities at amortised cost | 186,426 | 0 | 0 | 186,426 | 0 | 0 |
| Securities at fair value through profit or loss | 113,607 | 80,940 | 7, 457 | 25,210 | 0 | 0 |
| Cash and cash equivalents | 1,430,269 | 681,962 | 9,961 | 645,366 | 0 | 92,980 |
| Total current assets | 3, 487, 676 | 1,839,568 | 250,407 | 1,033,265 | 51,350 | 313,086 |
| Total assets | 4,662,685 | 2,594,710 | 551,572 | 1,132,056 | 54,572 | 329,775 |
| EQUITY AND LIABILITIES | ||||||
| Shareholders’ equity | ||||||
| Issued capital | 16,000 | 16,000 | 0 | 0 | 0 | 0 |
| Additional paid-in capital | 5,000 | 5,000 | 0 | 0 | 0 | 0 |
| Retained earnings | 497,274 | 497,274 | 0 | 0 | 0 | 0 |
| Other comprehensive income from cash flow hedges | –3,795 | –3,795 | 0 | 0 | 0 | 0 |
| Foreign currency translation | –71 | –71 | 0 | 0 | 0 | 0 |
| Total shareholders’ equity | 514,408 | 514,408 | 0 | 0 | 0 | 0 |
| Non-current liabilities | ||||||
| Bonds issued | 2,155,764 | 2,155,764 | 0 | 0 | 0 | 0 |
| Liabilities for pension plans | 7,227 | 0 | 0 | 7,227 | 0 | 0 |
| Lease liabilities | 1,054 | 245 | 0 | 809 | 0 | 0 |
| Negative fair values of derivative instruments | 12,561 | –161,852 | 167,254 | 7,064 | 0 | 95 |
| Deferred tax liabilities | 385 | 0 | 0 | 385 | 0 | 0 |
| Total non-current liabilities | 2,176,991 | 1,994,157 | 167, 254 | 15,485 | 0 | 95 |
| Current liabilities | ||||||
| Bonds issued | 498,623 | 498,623 | 0 | 0 | 0 | 0 |
| Payables to related companies | 1,422,468 | 1,159,788 | 72,995 | 51,431 | 5,738 | 132,516 |
| Lease liabilities | 1,217 | 1,158 | 0 | 59 | 0 | 0 |
| Payables to banks | 675 | 31 | 0 | 0 | 458 | 186 |
| Income tax payables | 14,791 | 3,714 | 0 | 11,077 | 0 | 0 |
| Negative fair values of derivative instruments | 10,168 | –50,186 | 55,826 | 1,894 | 1 | 2,633 |
| Other liabilities | 11, 571 | 2,244 | 1,309 | 7, 350 | 0 | 668 |
| Accrued expenses and deferred income | 11, 773 | 10,840 | 88 | 845 | 0 | 0 |
| Total current liabilities | 1,971,286 | 1,626,212 | 130,218 | 72,656 | 6,197 | 136,003 |
| Total equity and liabilities | 4,662,685 | 4,134,777 | 297, 472 | 88,141 | 6,197 | 136,098 |
| Balance sheet position | 0 | –1,540,067 | 254,100 | 1,043,915 | 48,375 | 193,677 |
Financial Statements 2024 Würth Finance Group
Balance sheet by currency at 31 December 2023
| Amounts in TEUR countervalue | ||||||
| in TEUR | Total | EUR | USD | CHF | DKK | Others |
| ASSETS | ||||||
| Non-current assets | ||||||
| Intangible assets | 1,435 | –190 | 0 | 1,625 | 0 | 0 |
| Right-of-use assets | 1,621 | 1,361 | 0 | 260 | 0 | 0 |
| Property, plant and equipment | 271 | –134 | 0 | 405 | 0 | 0 |
| Loans to related companies | 1,389,770 | 849,804 | 379,870 | 131,269 | 3,178 | 25,649 |
| Positive fair values of derivative instruments | 10,193 | 162,284 | –153,865 | 1,597 | 5 | 172 |
| Deferred tax assets | 1,781 | 1,265 | 0 | 516 | 0 | 0 |
| Total non-current assets | 1,405,071 | 1,014,390 | 226,005 | 135,672 | 3,183 | 25,821 |
| Current assets | ||||||
| Receivables from related companies | 1,297,954 | 878,115 | 94,435 | 56,605 | 50,662 | 218,137 |
| Positive fair values of derivative instruments | 9,785 | 12,676 | –9,444 | 1,959 | 40 | 4,554 |
| Other assets | 5,724 | 4,291 | 0 | 1,432 | 0 | 1 |
| Income tax receivables | 55 | 0 | 0 | 55 | 0 | 0 |
| Accrued income and prepaid expenses | 12,088 | 9,321 | –618 | 2,129 | 5 | 1,251 |
| Securities at amortised cost | 112,949 | 0 | 0 | 112,949 | 0 | 0 |
| Securities at fair value through profit or loss | 114, 782 | 81,515 | 4,536 | 26,936 | 0 | 1,795 |
| Cash and cash equivalents | 1,191,590 | 631,599 | 1,068 | 543,849 | 2 | 15,072 |
| Total current assets | 2,744,927 | 1,617,517 | 89,977 | 745,914 | 50,709 | 240,810 |
| Total assets | 4,149,998 | 2,631,907 | 315,982 | 881,586 | 53,892 | 266,631 |
| EQUITY AND LIABILITIES | ||||||
| Shareholders’ equity | ||||||
| Issued capital | 16,000 | 16,000 | 0 | 0 | 0 | 0 |
| Additional paid-in capital | 5,000 | 5,000 | 0 | 0 | 0 | 0 |
| Retained earnings | 438,133 | 438,133 | 0 | 0 | 0 | 0 |
| Other comprehensive income from cash flow hedges | –5,409 | –5,409 | 0 | 0 | 0 | 0 |
| Foreign currency translation | 179 | 179 | 0 | 0 | 0 | 0 |
| Total shareholders’ equity | 453,903 | 453,903 | 0 | 0 | 0 | 0 |
| Non-current liabilities | ||||||
| Bonds issued | 2,149,847 | 2,149,847 | 0 | 0 | 0 | 0 |
| Liabilities for pension plans | 5,292 | 0 | 0 | 5,292 | 0 | 0 |
| Lease liabilities | 341 | 240 | 0 | 101 | 0 | 0 |
| Negative fair values of derivative instruments | 12,949 | 61,909 | –36,472 | –12,194 | 0 | –294 |
| Deferred tax liabilities | 397 | 0 | 0 | 397 | 0 | 0 |
| Total non-current liabilities | 2,168,826 | 2,211,996 | –36,472 | –6,404 | 0 | –294 |
| Current liabilities | ||||||
| Bonds issued | 0 | 0 | 0 | 0 | 0 | 0 |
| Payables to related companies | 1,474,770 | 1,224,990 | 103,252 | 23,973 | 4,134 | 118,421 |
| Lease liabilities | 1,304 | 1,139 | 0 | 165 | 0 | 0 |
| Payables to banks | 5,731 | 84 | 4,777 | 0 | 173 | 697 |
| Income tax payables | 12,422 | 2,121 | 0 | 10,301 | 0 | 0 |
| Negative fair values of derivative instruments | 13,227 | 55,030 | –20,593 | –15,187 | –6 | –6,017 |
| Other liabilities | 10,435 | 1,603 | 1,149 | 6,692 | 2 | 989 |
| Accrued expenses and deferred income | 9,380 | 8,422 | 102 | 856 | 0 | 0 |
| Total current liabilities | 1, 527, 269 | 1,293,389 | 88,687 | 26,800 | 4,303 | 114,090 |
| Total equity and liabilities | 4,149,998 | 3,959,288 | 52,215 | 20,396 | 4,303 | 113,796 |
| Balance sheet position | 0 | -1,327,381 | 263,767 | 861,190 | 49,589 | 152,835 |
Annual Report 2024 Würth Finance Group
26
27
Balance sheet by interest rate exposure at 31 December 2024
| Fixed | Variable | Non–interest | ||
| in TEUR | Total | interest rate | interest rate | bearing |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 1,238 | 0 | 0 | 1,238 |
| Right-of-use assets | 2,247 | 0 | 0 | 2,247 |
| Property, plant and equipment | 397 | 0 | 0 | 397 |
| Loans to related companies | 1,164,651 | 1,164,651 | 0 | 0 |
| Positive fair values of derivative instruments | 5,293 | 0 | 0 | 5,293 |
| Deferred tax assets | 1,183 | 0 | 0 | 1,183 |
| Total non-current assets | 1,175,009 | 1,164,651 | 0 | 10,358 |
| Current assets | ||||
| Receivables from related companies | 1,723,063 | 935,917 | 604,728 | 182,418 |
| Positive fair values of derivative instruments | 12,713 | 0 | 0 | 12,713 |
| Other assets | 5,412 | 0 | 5,412 | 0 |
| Income tax receivables | 0 | 0 | 0 | 0 |
| Accrued income and prepaid expenses | 16,186 | 0 | 0 | 16,186 |
| Securities at amortised cost | 186,426 | 186,426 | 0 | 0 |
| Securities at fair value through profit or loss | 113,607 | 91,007 | 7,260 | 15,340 |
| Cash and cash equivalents | 1,430,269 | 0 | 1,430,269 | 0 |
| Total current assets | 3, 487, 676 | 1,213,350 | 2,047, 669 | 226,657 |
| Total assets | 4,662,685 | 2,378,001 | 2,047, 669 | 237,015 |
| EQUITY AND LIABILITIES | ||||
| Shareholders’ equity | ||||
| Issued capital | 16,000 | 0 | 0 | 16,000 |
| Additional paid-in capital | 5,000 | 0 | 0 | 5,000 |
| Retained earnings | 497,274 | 0 | 0 | 497,274 |
| Other comprehensive income from cash flow hedges | –3,795 | 0 | 0 | –3,795 |
| Foreign currency translation | –71 | 0 | 0 | –71 |
| Total shareholders’ equity | 514,408 | 0 | 0 | 514,408 |
| Non-current liabilities | ||||
| Bonds issued | 2,155,764 | 2,155,764 | 0 | 0 |
| Liabilities for pension plans | 7,227 | 0 | 7,227 | 0 |
| Lease liabilities | 1,054 | 1,054 | 0 | 0 |
| Negative fair values of derivative instruments | 12,561 | 0 | 0 | 12,561 |
| Deferred tax liabilities | 385 | 0 | 0 | 385 |
| Total non-current liabilities | 2,176,991 | 2,156,818 | 7, 227 | 12,946 |
| Current liabilities | ||||
| Bonds issued | 498,623 | 498,623 | 0 | 0 |
| Payables to related companies | 1,422,468 | 725,274 | 697,194 | 0 |
| Lease liabilities | 1,217 | 1,217 | 0 | 0 |
| Payables to banks | 675 | 0 | 675 | 0 |
| Income tax payables | 14,791 | 0 | 0 | 14,791 |
| Negative fair values of derivative instruments | 10,168 | 0 | 0 | 10,168 |
| Other liabilities | 11, 571 | 0 | 0 | 11, 571 |
| Accrued expenses and deferred income | 11, 773 | 0 | 0 | 11, 773 |
| Total current liabilities | 1,971,286 | 1,225,114 | 697,869 | 48,303 |
| Total equity and liabilities | 4,662,685 | 3,381,932 | 705,096 | 575,657 |
| Balance sheet position | 0 | –1,003,931 | 1,342,573 | –338,642 |
Financial Statements 2024 Würth Finance Group
Balance sheet by interest rate exposure at 31 December 2023
| Fixed | Variable | Non–interest | ||
| in TEUR | Total | interest rate | interest rate | bearing |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 1,435 | 0 | 0 | 1,435 |
| Right-of-use assets | 1,621 | 0 | 0 | 1,621 |
| Property, plant and equipment | 271 | 0 | 0 | 271 |
| Loans to related companies | 1,389,770 | 1,389,770 | 0 | 0 |
| Positive fair values of derivative instruments | 10,193 | 0 | 0 | 10,193 |
| Deferred tax assets | 1,781 | 0 | 0 | 1,781 |
| Total non-current assets | 1,405,071 | 1,389,770 | 0 | 15,301 |
| Current assets | ||||
| Receivables from related companies | 1,297,954 | 610,300 | 478,638 | 209,016 |
| Positive fair values of derivative instruments | 9,785 | 0 | 0 | 9,785 |
| Other assets | 5,724 | 0 | 5,724 | 0 |
| Income tax receivables | 55 | 0 | 0 | 55 |
| Accrued income and prepaid expenses | 12,088 | 0 | 0 | 12,088 |
| Securities at amortised cost | 112,949 | 112,949 | 0 | 0 |
| Securities at fair value through profit or loss | 114, 782 | 92,847 | 8,572 | 13,363 |
| Cash and cash equivalents | 1,191,590 | 0 | 1,191,590 | 0 |
| Total current assets | 2,744,927 | 816,096 | 1,684,524 | 244,307 |
| Total assets | 4,149,998 | 2,205,866 | 1,684,524 | 259,608 |
| EQUITY AND LIABILITIES | ||||
| Shareholders’ equity | ||||
| Issued capital | 16,000 | 0 | 0 | 16,000 |
| Additional paid-in capital | 5,000 | 0 | 0 | 5,000 |
| Retained earnings | 438,133 | 0 | 0 | 438,133 |
| Other comprehensive income from cash flow hedges | –5,409 | 0 | 0 | –5,409 |
| Foreign currency translation | 179 | 0 | 0 | 179 |
| Total shareholders’ equity | 453,903 | 0 | 0 | 453,903 |
| Non-current liabilities | ||||
| Bonds issued | 2,149,847 | 2,149,847 | 0 | 0 |
| Liabilities for pension plans | 5,292 | 0 | 5,292 | 0 |
| Lease liabilities | 341 | 341 | 0 | 0 |
| Negative fair values of derivative instruments | 12,949 | 0 | 0 | 12,949 |
| Deferred tax liabilities | 397 | 0 | 0 | 397 |
| Total non-current liabilities | 2,168,826 | 2,150,188 | 5,292 | 13,346 |
| Current liabilities | ||||
| Bonds issued | 0 | 0 | 0 | 0 |
| Payables to related companies | 1,474,770 | 645,262 | 829,508 | 0 |
| Lease liabilities | 1,304 | 1,304 | 0 | 0 |
| Payables to banks | 5,731 | 0 | 5,731 | 0 |
| Income tax payables | 12,422 | 0 | 0 | 12,422 |
| Negative fair values of derivative instruments | 13,227 | 0 | 0 | 13,227 |
| Other liabilities | 10,435 | 0 | 0 | 10,435 |
| Accrued expenses and deferred income | 9,380 | 0 | 0 | 9,380 |
| Total current liabilities | 1, 527, 269 | 646,566 | 835,239 | 45,464 |
| Total equity and liabilities | 4,149,998 | 2,796,754 | 840,531 | 512,713 |
| Balance sheet position | 0 | –590,888 | 844,056 | –253,169 |
Annual Report 2024 Würth Finance Group
28
29
Interest rate risk
The Group finances Würth Group companies all
over the world and is consequently exposed to interest rate risks. The
Group deems interest rate risk to mean the negative impact
on the financial position and the earnings situation arising
from changes in the interest rates in all currencies. Loans to
Würth Group companies were partially refinanced by fixed-
interest bonds with similar interest and maturity structures.
The maximum willingness to take risks in the interest rate sec-
tor is defined by a sensitivity in relation to the equity capital.
In the event of adverse changes in the interest rates on the
in- dividual
currencies by 100 basis points, the maximum loss potential
is related to equity. The Group keeps the impact of interest
rate changes on the equity capital base or on the as- set and income situation relatively low and is
guided in the medium term by the target value of 5% for the equity sensitiv-
ity. Furthermore, the Group enters into derivative financial
in- struments
to optimise its interest rate exposure.
Sensitivity analysis of equity as at 31
December The following table discloses the sensitivity of the Group’s
equity to a parallel shift of interest rates, with all other
variables held constant. Compared to last year the interest
rate sensitivity has increased due to the new bond issued in
the amount of EUR 500 million. The table reflects the most
important currencies for loans and deposits in terms of vol- umes for
the Würth Finance Group. Compared to the previ- ous year volumes in currencies exposure other
than the euro have decreased in total. However, interest rate risks have
been kept minimal.
Sensitivity of equity 2024
| in TEUR | Duration | |||||||||||
| Change in | ||||||||||||
| Currency | basis points | ≤6 months | 6 months to 1 year | 1–5 years | >5 years | Total | ||||||
| EUR | 100 | –100 | –1,759 | 1,835 | –1,733 | 1,797 | 1,604 | –1,653 | 30,345 | –32,416 | 28,457 | –30,437 |
| USD | 100 | –100 | –86 | 90 | 7 | –7 | –1,806 | 1,897 | 0 | 0 | –1,885 | 1,980 |
| CHF | 100 | –100 | –380 | 390 | –246 | 254 | 2,100 | –2,134 | –353 | 374 | 1,121 | –1,116 |
| DKK | 100 | –100 | 25 | –26 | 0 | 0 | –5 | 5 | –3 | 3 | 17 | –18 |
| CNH | 100 | –100 | –9 | 9 | 1 | –1 | 0 | 0 | 0 | 0 | –8 | 8 |
| NOK | 100 | –100 | –10 | 10 | 5 | –5 | 0 | 0 | 0 | 0 | –5 | 5 |
| CAD | 100 | –100 | 4 | –3 | –9 | 10 | 2 | –2 | 0 | 0 | –3 | 5 |
| GBP | 100 | –100 | –3 | 3 | –6 | 6 | 0 | 0 | 0 | 0 | –9 | 9 |
| Others | 100 | –100 | –19 | 20 | –86 | 89 | –51 | 52 | 0 | 0 | –156 | 161 |
Sensitivity of equity 2023
| in TEUR | Duration | |||||||||||
| Change in | ||||||||||||
| Currency | basis points | ≤6 months | 6 months to 1 year | 1–5 years | >5 years | Total | ||||||
| EUR | 100 | –100 | –724 | 766 | –1,945 | 2,029 | 9,466 | –9,996 | 15,507 | –16,622 | 22,304 | –23,823 |
| USD | 100 | –100 | 43 | –46 | –195 | 204 | 59 | –60 | –2,046 | 2,156 | –2,139 | 2,254 |
| CHF | 100 | –100 | –540 | 560 | –66 | 68 | 4,593 | –4,767 | –1,072 | 1,328 | 2,915 | –2,811 |
| DKK | 100 | –100 | 6 | –7 | 0 | 0 | 27 | –27 | 0 | 0 | 33 | –34 |
| CNH | 100 | –100 | 6 | –7 | 10 | –10 | 0 | 0 | 0 | 0 | 16 | –17 |
| NOK | 100 | –100 | 1 | –2 | –12 | 13 | 0 | 0 | 0 | 0 | –11 | 11 |
| CAD | 100 | –100 | 0 | 0 | 1 | –1 | 0 | 0 | 0 | 0 | 1 | –1 |
| GBP | 100 | –100 | –6 | 7 | –25 | 26 | 0 | 0 | 0 | 0 | –31 | 33 |
| Others | 100 | –100 | –4 | 5 | –47 | 49 | –145 | 150 | 0 | 0 | –196 | 204 |
Financial Statements 2024 Würth Finance Group
Security price risk
Due to its investment activities, the Group is
exposed to secu- rity price risks. The Group deems security price risks to mean
the exposure to loss resulting from changes in the prices of
listed securities at fair value through profit or loss.
Basically, a minimum rating of BBB– (Standard
& Poor’s) is required
when selecting bonds. The trend of the rating is monitored
on a daily basis. In the event of the bond being
downgraded, it is immediately disposed of.
However, the Group has a maximum limit of EUR 15 million in market
value for sub-investment-grade bonds. Furthermore, the
Group uses derivative instruments to economically hedge security price risks.
The composition of the portfolio is monitored
on a daily ba- sis. The
allocation is shown in the table below:
Asset allocation at 31 December 2024
| in TEUR | Market value | Share |
| Equity/equity funds | 13,428 | 11.8% |
| Investment-grade bonds /bond funds | 97,113 | 85.5% |
| Sub-investment-grade bonds | 1,153 | 1.0% |
| Commodities | 1,913 | 1.7% |
| Total asset allocation | 113,607 | 100.0% |
Asset allocation at 31 December 2023
| in TEUR | Market value | Share |
| Equity/equity funds | 11,314 | 9.9% |
| Investment-grade bonds /bond funds | 99,429 | 86.6% |
| Sub-investment-grade bonds | 1,990 | 1.7% |
| Commodities | 2,049 | 1.8% |
| Total asset allocation | 114,782 | 100.0% |
Credit risk
In order to minimise credit risks, transactions
are conducted only with external counterparties that meet internal criteria.
For each rating level, binding counterparty limits are de- fined.
Their absolute value is subject to regular critical re- views by the supervisory bodies and is adjusted
if necessary. Würth Group counterparties are monitored by Würth Fi- nance
International B.V. together with the appropriate mem- ber of the Würth Group’s Central Management
Board, and granted a credit limit. ISDA agreements are concluded with
external counterparties with whom the Group carries out
transactions within the framework of financial risk manage- ment.
The corresponding credit rating of the internal
and external counterparties and the limitation on aggregated individual
counterparty risks are constantly monitored.
The counterparty risks relating to delcredere
business were transferred in full to insurance companies.
The maximum credit risk corresponds to the
value of all the financial assets, contingent liabilities and unused irrevocable
credit commitments stated in the annual accounts. Credit
risks relating to loans to individual Würth Group companies
with negative equity as at 31 December are covered at least
up to the amount of the negative equity of the subsidiary by
letters of comfort from the superordinate parent company.
Annual Report 2024 Würth Finance Group
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31
| in TEUR | 2024 | 2023 |
| Credit risks at 31 December | ||
| Total Würth Group long-term | 1,167,018 | 1,393,722 |
| Total Würth Group short-term | 1,723,800 | 1,298,848 |
| On-balance exposure | ||
| Cash and cash equivalents | 1,430,269 | 1,191,590 |
| Securities at amortised cost | 186,426 | 112,949 |
| Positive fair values of derivative instruments | 18,006 | 19,978 |
| Other assets | 5,412 | 5,724 |
| Off-balance exposure | ||
| Contingent liabilities | 211,397 | 458,972 |
| Lending commitments | 79,513 | 3,785 |
| Total credit risk exposure | 4,821,841 | 4,485,568 |
There is a difference only between the gross and
net credit risk exposure for derivative transactions, which can be net-
ted based on ISDA agreements. In principle, cash and cash
equivalents are invested at banks with a minimal rating of
BBB.
Credit losses are inherent costs of the Group’s
operations and their occurrence and amount may be irregular in nature.
Possible credit risk losses are reported in the Financial State-
ments using the approach for determining impairments based on
forward-looking expected credit losses (ECLs) in- troduced
in IFRS 9. From a credit risk modelling perspective, the ECL
parameters are the following three parameters: ex- posure at
default (EAD), probability of default (PD) and loss given
default (LGD). The EAD reflects the financial assets as potential
credit risk at the reporting date. It represents the outstanding cash flows, taking into account expected repay-
ments, interest payments and provisions, discounted at the
ef- fective
interest rate.
The PD represents the probability of a default
over a certain period of time. The third component, the LGD, represents an
estimate of the loss at the time of a potential default during
the life of a financial instrument.
The Group’s impairment approach applied to
long-term loans and short-term receivables from related and external
companies that are not measured at fair value through profit
or loss. The methodology the Group applied to calculate an
individual probability-weighted unbiased ECL is by using
LGD amounting to 60% and PD based on the Global Corpo- rate
Average Cumulative Default Rates (Bloomberg). In ac- cordance with IFRS 9, a three-stage model is used
to calcu- late the
ECL, which takes into account the change in credit quality
since initial recognition using different impairment models. A
shift from Stage 1 to Stage 2 reflects a significant increase
in credit risk. A shift from Stage 2 to Stage 3 is made if
there are objective indications of impairment as at the
balance sheet date.
Expected credit loss
| in TEUR | 31.12.2024 | 31.12.2023 |
| Loans to related companies | 2,367 | 3,952 |
| Short-term receivables from related companies | 737 | 894 |
| Total expected credit loss | 3,104 | 4,846 |
| ECL movements (in TEUR) | Stage 1 | Stage 2 | Stage 3 | Total |
| Balance as at 1 January 2024 | 4,526 | 320 | 0 | 4,846 |
| Changes due to | ||||
| Net movements from new and derecognised transactions | –428 | –271 | 0 | –699 |
| Stage migration | –8 | 18 | 0 | 10 |
| Remeasurements | –1,036 | –17 | 0 | –1,053 |
| Balance as at 31 December 2024 | 3,054 | 50 | 0 | 3,104 |
Legend
Net movements from new and derecognised
transactions
Effects resulting from the change in volume;
calculated using the current closing balance of the assets multiplied by the
PD of the previous year
Stage migration
Shifts between the stages due to reassessment
of the credit risk
Remeasurements
Residual amount represents the influence of the
changed PD
Financial Statements 2024 Würth Finance Group
The PD at year-end amounted to 0.3343% (2023: 0.4477%), which caused the reduced impairment
credit amount of TEUR 1,742 over 2024. The reduction is mainly
driven by the impact of the changed PD of TEUR
1,053.
Liquidity risk
The Würth Group needs sufficient liquidity to
fulfil its finan- cial obligations. In compliance with the superordinate Würth
Group policy, Würth Group companies are required to trans-
fer their excess liquidity to Würth Finance International B.V.
and, with the latter’s support, to make it available to other
Würth Group companies to bridge any potential shortages
in liquidity.
The objective of liquidity management is to
ensure that the Würth Group is able to meet its payment obligations. The
liquidity situation is monitored by the Cash Management department of Würth Finance International B.V.
The high international creditworthiness of the
Würth Group (Standard & Poor’s has awarded a Senior Unsecured “A” rat-
ing to Adolf Würth GmbH & Co. KG) allows the
Group to raise liquid funds in the international capital markets on
favourable conditions. Würth Finance International B.V. has
established a committed credit line of EUR 500 million.
The syndicate providing the funds consists of 12 banks. The
credit line is granted until 16 September 2029
and is guar-
anteed by Adolf Würth GmbH & Co. KG, Künzelsau. Addi- tionally
the Group has arranged credit lines with various banks to
cover any potential liquidity requirements.
Contractually agreed remaining terms to
maturity from financial liabilities
At 31 December 2024
| Cashflow | ||||
| in TEUR | Carrying amounts | <1 year | 1–5 years | >5 years |
| On-balance liabilities | ||||
| Financial liabilities | ||||
| Bonds | 2,654,387 | 542,581 | 1,198,549 | 1,142,750 |
| Payables to banks | 675 | 675 | 0 | 0 |
| Derivative financial liabilities | ||||
| Inflows from foreign currency instruments | 25,119 | 68,307 | 0 | |
| Outflows from foreign currency instruments | 24,217 | 26,261 | 7 7,174 | 0 |
| Inflows from interest rate instruments | 52,636 | 170,757 | 0 | |
| Outflows from interest rate instruments | 20,420 | 62,700 | 196,030 | 2,342 |
| Off-Balance liabilities | ||||
| Contingent liabilities | 211,397 | 211,397 | 0 | 0 |
At 31 December 2023
| Cashflow | ||||
| in TEUR | Carrying amounts | <1 year | 1–5 years | >5 years |
| On-balance liabilities | ||||
| Financial liabilities | ||||
| Bonds | 2,149,847 | 30,152 | 1,659,141 | 625,500 |
| Payables to banks | 5,731 | 5,731 | 0 | 0 |
| Derivative financial liabilities | ||||
| Inflows from foreign currency instruments | 1,213,884 | 7 7,0 05 | 12,696 | |
| Outflows from foreign currency instruments | 29,892 | 1,235,486 | 82,632 | 13,578 |
| Inflows from interest rate instruments | 28,331 | 183,612 | 0 | |
| Outflows from interest rate instruments | 22,142 | 40,417 | 200,720 | 4,157 |
| Off-Balance liabilities | ||||
| Contingent liabilities | 458,972 | 458,972 | 0 | 0 |
Annual Report 2024 Würth Finance Group
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33
b) Derivative financial instruments
Positions at 31 December 2024
| Contract value or | |||
| in TEUR | notional value | Positive fair value | Negative fair value |
| Foreign currency instruments | |||
| Forward currency contracts | 2,143,290 | 14,230 | –24,217 |
| Options | 150,465 | 591 | –591 |
| Total foreign currency instruments | 2,293,755 | 14,821 | –24,808 |
| Interest rate instruments | |||
| Interest rate swaps | 822,973 | 6,543 | –11,108 |
| Cross-currency swaps | 223,644 | 0 | –9,312 |
| Financial futures | 6,103 | 0 | 0 |
| Total interest rate instruments | 1,052,720 | 6,543 | –20,420 |
| Reduction due to CSA | 0 | –3,358 | 22,499 |
| Total derivative financial instruments | 3,346,475 | 18,006 | –22,729 |
Positions at 31 December 2023
| Contract value or | |||
| in TEUR | notional value | Positive fair value | Negative fair value |
| Foreign currency instruments | |||
| Forward currency contracts | 2,180,701 | 11,321 | –29,892 |
| Options | 56,658 | 2,795 | –108 |
| Total foreign currency instruments | 2, 237, 359 | 14,116 | –30,000 |
| Interest rate instruments | |||
| Interest rate swaps | 687,034 | 8,555 | –19,951 |
| Cross-currency swaps | 245,348 | 7,252 | –2,191 |
| Financial futures | 2,182 | 0 | 0 |
| Total interest rate instruments | 934,564 | 15,807 | –22,142 |
| Reduction due to CSA | 0 | –9,945 | 25,966 |
| Total derivative financial instruments | 3,171,923 | 19,978 | –26,176 |
The total derivative financial instruments were presented gross per counterparty.
ISDA master agreements with a CSA (Credit Support Annex) are concluded with those counterparties with whom transac- tions are carried out within the framework of financial risk
management. For this reason, the positive and negative fair values of the derivative financial instruments are recorded in the Financial Statements (balance sheet, income statement) in net terms, considering also the cash settlement based on the CSAs.
Financial Statements 2024 Würth Finance Group
The foreign currency instruments were mainly
used to hedge the currency positions in USD and CHF recorded in the bal- ance
sheet. The net positions of the fair values were as fol- lows: EUR –1.6 million (2023: EUR –15.1 million) had a ma- turity
date of less than 12 months and EUR –8.4 million (2023: EUR –3.4
million) mature in 1–5 years.
The interest rate instruments were mainly used
to hedge cur- rency and
interest rate risks on non-congruent asset and lia- bility positions in EUR, USD and CHF. The maximum
maturity was 8¼ years.
Offsetting financial instruments
Positions at 31 December 2024
| Gross amounts offset | |||
| Gross carrying amounts | in accordance with | Net amount presented | |
| in TEUR | (before offsetting) | the offsetting criteria | in balance sheet |
| FINANCIAL ASSETS | |||
| Derivative financial instruments | 21,364 | –3,358 | 18,006 |
| Total | 21,364 | –3,358 | 18,006 |
| FINANCIAL LIABILITIES | |||
| Derivative financial instruments | –45,228 | 22,499 | –22,729 |
| Total | –45,228 | 22,499 | –22,729 |
Positions at 31 December 2023
| Gross amounts offset | |||
| Gross carrying amounts | in accordance with | Net amount presented | |
| in TEUR | (before offsetting) | the offsetting criteria | in balance sheet |
| FINANCIAL ASSETS | |||
| Derivative financial instruments | 29,923 | –9,945 | 19,978 |
| Total | 29,923 | –9,945 | 19,978 |
| FINANCIAL LIABILITIES | |||
| Derivative financial instruments | –52,142 | 25,966 | –26,176 |
| Total | –52,142 | 25,966 | –26,176 |
Offsetting rights that do not meet some or all
of the criteria for offsetting in the balance sheet are not disclosed since the effects
are
considered immaterial.
Annual Report 2024 Würth Finance Group
34
35
c) Fair value of financial instruments at 31 December
| Carrying amount | Fair value | |||
| in TEUR | 2024 | 2023 | 2024 | 2023 |
| ASSETS | ||||
| Non-current assets | ||||
| Loans to related companies | 1,164,651 | 1,389,770 | 1,197,298 | 1,401,428 |
| Positive fair values of derivative instruments | 5,293 | 10,193 | 5,293 | 10,193 |
| Total non-current assets | 1,169,944 | 1,399,963 | 1,202,591 | 1,411,621 |
| Current assets | ||||
| Receivables from related companies | 1,723,063 | 1,297,954 | 1,723,063 | 1,297,954 |
| Positive fair values of derivative instruments | 12,713 | 9,785 | 12,713 | 9,785 |
| Securities at amortised cost | 186,426 | 112,949 | 186,772 | 113,214 |
| Securities at fair value through profit or loss | 113,607 | 114, 782 | 113,607 | 114, 782 |
| Cash and cash equivalents | 1,430,269 | 1,191,590 | 1,430,269 | 1,191,590 |
| Total current assets | 3,466,078 | 2,727,060 | 3,466,424 | 2, 727, 325 |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Bonds issued | 2,155,764 | 2,149,847 | 2,125,869 | 2,073,057 |
| Negative fair values of derivative instruments | 12,561 | 12,949 | 12,561 | 12,949 |
| Total non-current liabilities | 2,168,325 | 2,162,796 | 2,138,430 | 2,086,006 |
| Current liabilities | ||||
| Bond issued | 498,623 | 0 | 496,315 | 0 |
| Payables to related companies | 1,422,468 | 1,474,770 | 1,420,769 | 1,471,927 |
| Payables to banks | 675 | 5,731 | 675 | 5,731 |
| Negative fair values of derivative instruments | 10,168 | 13,227 | 10,168 | 13,227 |
| Total current liabilities | 1,931,934 | 1,493,728 | 1,927,927 | 1,490,885 |
Upon initial recognition, the Group recognised derivative fi- nancial instruments at fair value and non-derivative financial assets that are held to collect contractual cash flows that are solely payments of principal and interest, as well as non- derivative financial liabilities, at their amortised cost using the effective interest rate method.
In order to calculate the fair value of non-derivative financial instruments that are not actively traded and quoted, the valu-
ation technique of a discounted cash flow model is used (fair value hierarchy level 2). The discounted cash flow valuation technique calculates fair values by using estimated expected or contractual future cash flows and then discounts these cash flows with a discount rate that reflects the credit spreads required by the market for instruments with similar risk and liquidity profiles to produce a present value. The dis- count factors within the calculation are generated using in- dustry standard yield curve modelling techniques.
Financial Statements 2024 Würth Finance Group
Assets and liabilities measured at fair value at 31 December 2024
| in TEUR | Level 1 | Level 2 | Level 3 | Total fair value |
| ASSETS | ||||
| Derivative financial instruments | ||||
| Interest rate swaps | 0 | 6,543 | 0 | 6,543 |
| Cross-currency swaps | 0 | 0 | 0 | 0 |
| Options | 0 | 591 | 0 | 591 |
| Forward currency contracts | 0 | 14,230 | 0 | 14,230 |
| Reduction due to CSA | 0 | –3,358 | 0 | –3,358 |
| Financial instruments at fair value through profit or loss | ||||
| Securities at fair value through profit or loss | 113,607 | 0 | 0 | 113,607 |
| Financial instruments at amortised cost | ||||
| Loans to related companies | 0 | 1,197,298 | 0 | 1,197,298 |
| Securities at amortised cost | 0 | 186,426 | 0 | 186,426 |
| LIABILITIES | ||||
| Derivative financial instruments | ||||
| Interest rate swaps | 0 | 11,108 | 0 | 11,108 |
| Cross-currency swaps | 0 | 9,312 | 0 | 9,312 |
| Options | 0 | 591 | 0 | 591 |
| Foreign currency contracts | 0 | 24,217 | 0 | 24,217 |
| Reduction due to CSA | 0 | –22,499 | 0 | –22,499 |
| Other liabilities at amortised cost | ||||
| Bonds issued | 2,622,184 | 0 | 0 | 2,622,184 |
| Payables to related companies | 0 | 1,420,769 | 0 | 1,420,769 |
Fair value is the price at the reporting date that would be re- ceived for an asset sale or paid to transfer a liability in an or- derly transaction between market participants in the market. All financial instruments measured at fair value are cate- gorised into one of the three fair value hierarchy levels. The levels of the fair value hierarchy as defined below are an in- dication of the availability of market prices or price valuation inputs. For financial instruments where the carrying amount is a reasonable approximation of fair value, the exemption in IFRS 7.29 was used.
Level 1 financial instruments are those financial instruments whose fair value is based on quoted prices in active markets. This category comprises bonds issued by the Group and se- curities issued by public sector entities and corporates.
Level 2 financial instruments are those whose fair values must be derived using valuation techniques for which all signifi- cant inputs are based on observable market data. The fair value is calculated using a discounted cash flow analysis in which expected future cash flows are discounted. The fair value of financial instruments that are actively traded on or- ganised financial markets is determined by reference to quot- ed market prices. For financial instruments where there is no active market, fair value is determined using valuation tech- niques such as price quotations from securities brokers, dis-
counted cash flows or the Black-Scholes pricing model.
These valuations are by their nature dependent on the as- sumptions on which they are based. This category comprises all derivative financial instruments, receivables from related companies, loans to family foundations, bonds issued and payables to related companies.
For all financial instruments categorised within level 2, a de- scription of the valuation techniques and the inputs used in the valuation (e.g. interest rates, volatilities, market price of the underlying, price in a similar transaction, etc.) are trans- parently documented. If there is a change in valuation tech- nique, the reason for it has to be disclosed.
Level 3 financial instruments are those whose fair value is based on a valuation method that uses at least one signifi- cant input parameter that cannot be observed directly or in- directly in the market. At the balance sheet date, the Group had no assets and liabilities measured at fair value level 3.
During the reporting period ending 31 December 2024, there were no transfers between level 1 and level 2 fair val- ue measurements, and no transfers into or out of level 3 fair value measurements.
Annual Report 2024 Würth Finance Group
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37
Assets and liabilities measured at fair value at 31 December 2023
| in TEUR | Level 1 | Level 2 | Level 3 | Total fair value |
| ASSETS | ||||
| Derivative financial instruments | ||||
| Interest rate swaps | 0 | 8,555 | 0 | 8,555 |
| Cross-currency swaps | 0 | 7,252 | 0 | 7,252 |
| Options | 0 | 2,795 | 0 | 2,795 |
| Forward currency contracts | 0 | 11,321 | 0 | 11,321 |
| Reduction due to CSA | 0 | –9,945 | 0 | –9,945 |
| Financial instruments at fair value through profit or loss | ||||
| Securities at fair value through profit or loss | 114, 782 | 0 | 0 | 114, 782 |
| Financial instruments at amortised cost | ||||
| Loans to related companies | 0 | 1,401,428 | 0 | 1,401,428 |
| Securities at amortised cost | 0 | 112,949 | 0 | 112,949 |
| LIABILITIES | ||||
| Derivative financial instruments | ||||
| Interest rate swaps | 0 | 19,951 | 0 | 19,951 |
| Cross-currency swaps | 0 | 2,191 | 0 | 2,191 |
| Options | 0 | 108 | 0 | 108 |
| Foreign currency contracts | 0 | 29,892 | 0 | 29,892 |
| Reduction due to CSA | 0 | –25,966 | 0 | –25,966 |
| Other liabilities at amortised cost | ||||
| Bonds issued | 2,073,057 | 0 | 0 | 2,073,057 |
| Payables to related companies | 0 | 1,471,927 | 0 | 1,471,927 |
Capital management
The primary objective of the Group’s capital management is to ensure a strong credit rating towards external parties. The Group manages its capital structure and makes adjustments to it based on the equity ratio and the return on equity.
d) Hedge accounting
Cash flow hedges
The Group designates cash flow hedges as part of its strat- egy to mitigate its interest rate and foreign currency revalua- tion fluctuations within its established limits and to reduce the
cash flow fluctuations arising from foreign exchange and in- terest rate risk for an instrument or a group of instruments.
The Group mainly uses interest rate swaps to hedge the cash flows associated with its highly probable forecasted transac- tions and cross-currency swaps to hedge the cash flows as- sociated with its foreign currency loans to related parties.
The table below sets out the results of the Group’s hedging strategy, in particular the notional and carrying amount of the derivatives the Group uses as hedging instruments:
Financial Statements 2024 Würth Finance Group
| Carrying amount 2024 | Carrying amount 2023 | |||||
| Transaction | Notional | |||||
| in TEUR | currency | amount | Assets | Liabilities | Assets | Liabilities |
| Micro cash flow hedges | ||||||
| Hedges to related parties | USD | 20,000 | 0 | 0 | 0 | 401 |
| Hedges to related parties | USD | 37, 50 0 | 0 | 1,990 | 0 | 173 |
| Hedges to related parties | USD | 15,000 | 0 | 0 | 330 | 0 |
| Hedges to related parties | USD | 7,000 | 0 | 265 | 201 | 0 |
| Hedges to related parties | USD | 15,000 | 0 | 651 | 300 | 0 |
| Hedges to related parties | CHF | 19,937 | 0 | 1,008 | 0 | 1,617 |
| Forecasted – new bond issued 20181 | EUR | 0 | 31 | 0 | 108 | |
| Forecasted – new bond issued 20202 | EUR | 0 | 4,740 | 0 | 6,732 | |
| Forecasted – new bond issued 20223 | EUR | 403 | 0 | 474 | 0 | |
| Forecasted – new bond issued 20244 | EUR | 0 | 510 | 0 | 0 | |
The following table shows the maturity and
interest rate risk profile of the Group’s hedging instruments used in its cash flow
hedges.
As the Group applied only micro hedges with one-to-one hedging ratios, the table below effectively
shows the cash flow hedges:
| in TEUR | |||
| Carrying amount | <1 year | 1–5 years | >5 years |
| At 31 December 2024 | |||
| Hedges to related parties USD 37,500 | 0 | 1,990 | 0 |
| Hedges to related parties USD 7,000 | 265 | 0 | 0 |
| Hedges to related parties USD 15,000 | 651 | 0 | 0 |
| Hedges to related parties CHF 19,937 | 0 | 1,008 | 0 |
Since the issuance of the bonds and the
subsequent recogni- tion of interest expense result in the forecasted
transaction affecting profit and loss, the associated gains or losses
recognised in other comprehensive income are reclassified
into profit and loss.
For designated and qualifying cash flow hedges,
the effec- tive portion of the gain or loss on the hedging instrument is
initially recognised directly in OCI within equity in the cash
flow hedge reserve, while any ineffective portion of the gain
or loss on the hedging instrument is recognised immediately
in the income statement. The terms of the current cross-cur-
rency swap contracts match the terms of the expected highly
probable forecasted transactions. As a result, there is no
hedge ineffectiveness to be recognised in the statement of
profit or loss.
When a hedging instrument expires, is sold,
terminated, exer-
cised,
or when a hedge no longer meets the criteria for hedge
accounting under IFRS 9, any cumulative gain or loss that has
been recognised in OCI at that time remains in OCI and is
recognised when the hedged forecasted transaction is ultimately recognised in the income statement. When a fore- casted
transaction is no longer expected to occur, the cumu- lative gain or loss that was reported in OCI is
immediately transferred to the income statement.
Fair value hedges
The Group designates fair value hedges as part
of an overall interest rate risk management strategy that enables the
Group to keep interest rate sensitivities within its defined
lim- its and
to reduce fair value fluctuations of fixed-rate finan- cial
assets as if they were floating-rate instruments linked to the
attributable benchmark rates.
1 This micro cash flow hedge is related to the bond
issued in May 2018. The loss resulting from the termination of the hedging
instruments will be amortised to the
income statement from OCI (cash flow hedge
reserve) starting May 2019 over the actual swap term.
2 This micro cash flow hedge is related to the bond
issued in May 2020. The loss resulting from the termination of the hedging
instruments will be amortised to the
income statement from OCI (cash flow hedge
reserve) starting May 2020 over the actual swap term.
3 This micro cash flow hedge is related to the bond
issued in May 2022. The profit resulting from the termination of the hedging
instruments will be amortised to the
income statement from OCI (cash flow hedge
reserve) starting May 2022 over the actual swap term.
4 This micro cash flow hedge is related to the
issued bond in October 2024. The loss resulting from the termination of the
hedging instruments will be amortised to the
income statement from OCI (cash flow hedge
reserve) starting November 2024 over the actual swap term.
Annual Report 2024 Würth Finance Group
38
39
The Group’s fair value hedges principally
consist of interest rate swaps that are used to protect against
changes in the fair value of the fixed-rate Würth bonds as well as the loans
to related parties in EUR, and cross-currency swaps that are
used to protect against changes in the fair value of the fixed-
rate foreign currency loans.
The table below sets out the result of the
Group’s hedging strategy, in particular the notional and carrying amount of
the derivatives the Group uses as hedging instruments:
| Carrying amount 2024 | Carrying amount 2023 | |||||
| Transaction | Notional | |||||
| in TEUR | currency | amount | Assets | Liabilities | Assets | Liabilities |
| Micro fair value hedges | ||||||
| Würth bond 2025 | EUR | 150,000 | 0 | 1,231 | 0 | 4,992 |
| Würth bond 2026 | CHF | 100,000 | 3,123 | 0 | 1,528 | 0 |
| Würth bond 2030 | EUR | 250,000 | 0 | 9,405 | 0 | 13,291 |
| Würth bond 2031 | EUR | 200,000 | 0 | 77 | 0 | 0 |
| Hedges to related parties | EUR | 30,000 | 307 | 0 | 1,099 | 0 |
| Hedges to related parties | EUR | 10,000 | 716 | 0 | 1,021 | 0 |
| Hedges to related parties | USD | 130,000 | 0 | 3,856 | 5,030 | 0 |
| Hedges to related parties | EUR | 40,000 | 2,047 | 0 | 3,362 | 0 |
| Hedges to related parties | USD | 10,000 | 0 | 159 | 569 | 0 |
| Hedges to related parties | USD | 25,000 | 0 | 1,383 | 822 | 0 |
The following table shows the maturity and
interest rate risk profile of the Group’s hedging instruments used in its fair value
hedges.
As the Group applied only micro hedges with one-to-one hedging ratios, the table below effectively
shows the out- come of the fair value hedges:
| in TEUR | |||
| Carrying amount | <1 year | 1–5 years | >5 years |
| At 31 December 2024 | |||
| Würth bond 2025 EUR 150,000 | 1,231 | 0 | 0 |
| Würth bond 2026 CHF 100,000 | 0 | 3,123 | 0 |
| Würth bond 2030 EUR 250,000 | 0 | 0 | 9,405 |
| Würth bond 2031 EUR 200,000 | 0 | 0 | 77 |
| Hedges to related parties EUR 30,000 | 307 | 0 | 0 |
| Hedges to related parties EUR 10,000 | 0 | 716 | 0 |
| Hedges to related parties USD 130,000 | 0 | 3,856 | 0 |
| Hedges to related parties EUR 40,000 | 0 | 2,047 | 0 |
| Hedges to related parties USD 10,000 | 0 | 159 | 0 |
| Hedges to related parties USD 25,000 | 1,383 | 0 | 0 |
For derivatives that are designated and
qualified as fair val-
ue
hedges, the carrying value of the underlying hedged items is
adjusted to fair value for the risk being hedged. Changes
in the fair value of these derivatives are recorded in the
same line item of the consolidated income statement as the
change in fair value of the risk being hedged for the hedged
assets or liabilities to the extent the hedge is effec- tive. The
change in fair value representing hedge ineffective- ness is
recorded separately in trading income.
In accordance with its hedging strategy, the
Group matches the principal of the hedging instruments to the principal of
the hedged items. The Group uses fixed-rate payer interest
rate swaps to hedge its fixed-rate debt instruments and
loans, and fixed-rate receiver interest rate swaps to hedge its
fixed-rate liabilities.
As at the end of 2024, hedge ineffectiveness
resulting from credit valuation adjustment / debit valuation adjustment is
marginal.
If the hedging instrument expires or is sold,
terminated or ex-
ercised, or when the hedge no longer meets the criteria for
hedge accounting, the hedge relationship is discontinued
prospectively. If the relationship does not meet the hedge
ef- fectiveness criteria, the Group discontinues hedge account-
ing from the last date on which compliance with hedge effec-
tiveness is demonstrated. If the hedge accounting relationship is terminated for an item recorded at amortised
cost, the accumulated fair value hedge adjustment to the
car- rying
amount of the hedged item is amortised over the re- maining term of the original hedge by
recalculating the EIR. If the hedged item is derecognised, the
unamortised fair val-
ue adjustment is recognised immediately in the income state- ment.
Financial Statements 2024 Würth Finance Group
19 Segment information
The Group provides segment reporting by business line.
Income statement by segment at 31 December 2024
| Inhouse Banking | External | ||||||||
| Financial | |||||||||
| Services | |||||||||
| Total | |||||||||
| Total | Würth | ||||||||
| Group | Securities | Central | Central | Inhouse | Insurance | Finance | |||
| in TEUR | Financing | Trading | Investments | Settlement | Services | Banking | Brokerage | Elimination | Group |
| Income | |||||||||
| Interest income | 168,605 | 0 | 2,295 | 0 | 0 | 170,900 | 14 | –1,191 | 169,723 |
| Interest expenses | –106,852 | 0 | –152 | 0 | 0 | –107,0 04 | –13 | 1,191 | –105,826 |
| Net interest income | 61,753 | 0 | 2,143 | 0 | 0 | 63,896 | 1 | 0 | 63,897 |
| Income from factoring activities | 13,613 | 0 | 0 | 0 | 0 | 13,613 | 0 | 0 | 13,613 |
| Income from commission and | |||||||||
| service fee activities | 0 | 0 | 0 | 31,705 | 0 | 31,705 | 17,80 0 | 0 | 49,505 |
| Income from trading activities | |||||||||
| and financial instruments | 0 | 20,449 | 3,119 | 0 | 0 | 23,568 | –278 | 250 | 23,540 |
| Other ordinary income | 732 | 0 | 0 | 0 | 0 | 732 | 178 | 0 | 910 |
| Expected credit loss | |||||||||
| (expenses)/recovery | 1,742 | 0 | 0 | 0 | 0 | 1,742 | 0 | 0 | 1,742 |
| Total segment income | 77,840 | 20,449 | 5,262 | 31,705 | 0 | 135,256 | 17, 701 | 250 | 153,207 |
| Expenses | |||||||||
| Personnel expenses | 0 | 0 | 0 | 0 | –13,391 | –13,391 | –13,347 | 0 | –26,738 |
| Other administrative expenses | 0 | 0 | 0 | 0 | –13,850 | –13,850 | –2,357 | 0 | –16,207 |
| Amortisation | 0 | 0 | 0 | 0 | –1,208 | –1,208 | –874 | 0 | –2,082 |
| Segment expenses | 0 | 0 | 0 | 0 | –28,449 | –28,449 | –16,578 | 0 | –45,027 |
| Segment result | 77,840 | 20,449 | 5,262 | 31,705 | –28,449 | 106,807 | 1,123 | 250 | 108,180 |
| Income tax expense | 0 | 0 | 0 | 0 | –21,699 | –21,699 | –231 | 0 | –21,930 |
| Net profit for the year | 77,840 | 20,449 | 5,262 | 31,705 | –50,148 | 85,108 | 892 | 250 | 86,250 |
Annual Report 2024 Würth Finance Group
40
41
Income statement by segment at 31 December 2023
| Inhouse Banking | External | ||||||||
| Financial | |||||||||
| Services | |||||||||
| Total | |||||||||
| Total | Würth | ||||||||
| Group | Securities | Central | Central | Inhouse | Insurance | Finance | |||
| in TEUR | Financing | Trading | Investments | Settlement | Services | Banking | Brokerage | Elimination | Group |
| Income | |||||||||
| Interest income | 146,608 | 0 | 1,930 | 0 | 0 | 148,538 | 16 | –165 | 148,389 |
| Interest expenses | –97, 566 | 0 | –141 | 0 | 0 | –97, 707 | –3 | 165 | –97, 545 |
| Net interest income | 49,042 | 0 | 1,789 | 0 | 0 | 50,831 | 13 | 0 | 50,844 |
| Income from factoring activities | 13,573 | 0 | 0 | 0 | 0 | 13,573 | 0 | 0 | 13,573 |
| Income from commission and | |||||||||
| service fee activities | 0 | 0 | 0 | 33,736 | 0 | 33,736 | 15,828 | 0 | 49,564 |
| Income from trading activities | |||||||||
| and financial instruments | 0 | 15,178 | 4,898 | 0 | 0 | 20,076 | 440 | –140 | 20,376 |
| Other ordinary income | 410 | 0 | 0 | 0 | 0 | 410 | 182 | 0 | 592 |
| Expected credit loss | |||||||||
| (expenses)/recovery | 4,273 | 0 | 0 | 0 | 0 | 4,273 | 0 | 0 | 4,273 |
| Total segment income | 67, 298 | 15,178 | 6,687 | 33,736 | 0 | 122,899 | 16,463 | –140 | 139,222 |
| Expenses | |||||||||
| Personnel expenses | 0 | 0 | 0 | 0 | –11, 590 | –11, 590 | –12,145 | 0 | –23,735 |
| Other administrative expenses | 0 | 0 | 0 | 0 | –13,131 | –13,131 | –2,137 | 0 | –15,268 |
| Amortisation | 0 | 0 | 0 | 0 | –1,144 | –1,144 | –874 | 0 | –2,018 |
| Segment expenses | 0 | 0 | 0 | 0 | –25,865 | –25,865 | –15,156 | 0 | –41,021 |
| Segment result | 67, 298 | 15,178 | 6,687 | 33,736 | –25,865 | 97,034 | 1,307 | –140 | 98,201 |
| Income tax expense | 0 | 0 | 0 | 0 | –18,978 | –18,978 | –154 | 0 | –19,132 |
| Net profit for the year | 67, 298 | 15,178 | 6,687 | 33,736 | –44,843 | 78,056 | 1,153 | –140 | 79,069 |
Financial Statements 2024 Würth Finance Group
Balance sheet by segment at 31 December 2024
| Inhouse Banking | External | ||||||||
| Financial | |||||||||
| Services | |||||||||
| Total | |||||||||
| Total | Würth | ||||||||
| Group | Securities | Central | Central | Inhouse | Insurance | Finance | |||
| in TEUR | Financing | Trading | Investments | Settlement | Services | Banking | Brokerage | Elimination | Group |
| Balance sheet | |||||||||
| Segment assets | 4,513,857 | 17, 772 | 115,157 | 0 | 39,292 | 4,686,078 | 9,949 | –33,342 | 4,662,685 |
| Segment liabilities | 4,174,406 | 22,631 | 27,355 | 0 | 461,686 | 4,686,078 | 9,949 | –33,342 | 4,662,685 |
| Additional segment | |||||||||
| information | |||||||||
| Capital expenditures | 0 | 0 | 0 | 0 | 290 | 290 | 194 | 0 | 484 |
Balance sheet by segment at 31 December 2023
| Inhouse Banking | External | ||||||||
| Financial | |||||||||
| Services | |||||||||
| Total | |||||||||
| Total | Würth | ||||||||
| Group | Securities | Central | Central | Inhouse | Insurance | Finance | |||
| in TEUR | Financing | Trading | Investments | Settlement | Services | Banking | Brokerage | Elimination | Group |
| Balance sheet | |||||||||
| Segment assets | 4,032,222 | 19,928 | 115,349 | 0 | 35,789 | 4,203,288 | 8,750 | –62,040 | 4,149,998 |
| Segment liabilities | 3,746,599 | 25,518 | 22,637 | 0 | 408,534 | 4,203,288 | 8,750 | –62,040 | 4,149,998 |
| Additional segment | |||||||||
| information | |||||||||
| Capital expenditures | 8 | 0 | 0 | 0 | 0 | 8 | 327 | 0 | 335 |
Annual Report 2024 Würth Finance Group
42
43
20 Maturity analysis of assets and liabilities
The table below shows an analysis of assets and liabilities presented according to when they are expected to be recovered or settled. Trading assets and liabilities have been classified to mature and/or be repaid within 12 months, regardless of the actual contractual maturities of the products.
At 31 December 2024
| Maturity | |||
| in TEUR | Total | <12 months | >12 months |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 1,238 | 366 | 872 |
| Right-of-use assets | 2,247 | 0 | 2,247 |
| Property, plant and equipment | 397 | 397 | 0 |
| Loans to related companies | 1,164,651 | 0 | 1,164,651 |
| Positive fair values of derivative instruments | 5,293 | 0 | 5,293 |
| Deferred tax assets | 1,183 | 1,183 | 0 |
| Total non-current assets | 1,175,009 | 1,946 | 1,173,063 |
| Current assets | |||
| Receivables from related companies | 1,723,063 | 1,723,063 | 0 |
| Positive fair values of derivative instruments | 12,713 | 12,713 | 0 |
| Other assets | 5,412 | 5,412 | 0 |
| Income tax receivables | 0 | 0 | 0 |
| Accrued income and prepaid expenses | 16,186 | 16,186 | 0 |
| Securities at amortised cost | 186,426 | 186,426 | 0 |
| Securities at fair value through profit or loss | 113,607 | 113,607 | 0 |
| Cash and cash equivalents | 1,430,269 | 1,430,269 | 0 |
| Total current assets | 3, 487, 676 | 3, 487, 676 | 0 |
| Total assets | 4,662,685 | 3,489,622 | 1,173,063 |
| Non-current liabilities | |||
| Bonds issued | 2,155,764 | 0 | 2,155,764 |
| Liabilities for pension plans | 7,227 | 0 | 7,227 |
| Lease liabilities | 1,054 | 0 | 1,054 |
| Negative fair values of derivative instruments | 12,561 | 0 | 12,561 |
| Deferred tax liabilities | 385 | 385 | 0 |
| Total non-current liabilities | 2,176,991 | 385 | 2,176,606 |
| Current liabilities | |||
| Bonds issued | 498,623 | 498,623 | 0 |
| Payables to related companies | 1,422,468 | 1,422,468 | 0 |
| Lease liabilities | 1,217 | 1,217 | 0 |
| Payables to banks | 675 | 675 | 0 |
| Income tax payables | 14,791 | 14,791 | 0 |
| Negative fair values of derivative instruments | 10,168 | 10,168 | 0 |
| Other liabilities | 11, 571 | 11, 571 | 0 |
| Accrued expenses and deferred income | 11, 773 | 11, 773 | 0 |
| Total current liabilities | 1,971,286 | 1,971,286 | 0 |
| Total liabilities | 4,148,277 | 1,971,671 | 2,176,606 |
Financial Statements 2024 Würth Finance Group
At 31 December 2023
| Maturity | |||
| in TEUR | Total | <12 months | >12 months |
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 1,435 | 372 | 1,063 |
| Right-of-use assets | 1,621 | 0 | 1,621 |
| Property, plant and equipment | 271 | 271 | 0 |
| Loans to related companies | 1,389,770 | 0 | 1,389,770 |
| Positive fair values of derivative instruments | 10,193 | 0 | 10,193 |
| Deferred tax assets | 1,781 | 1,781 | 0 |
| Total non-current assets | 1,405,071 | 2,424 | 1,402,647 |
| Current assets | |||
| Receivables from related companies | 1,297,954 | 1,297,954 | 0 |
| Positive fair values of derivative instruments | 9,785 | 9,785 | 0 |
| Other assets | 5,724 | 5,724 | 0 |
| Income tax receivables | 55 | 55 | 0 |
| Accrued income and prepaid expenses | 12,088 | 12,088 | 0 |
| Securities at amortised cost | 112,949 | 112,949 | 0 |
| Securities at fair value through profit or loss | 114, 782 | 114, 782 | 0 |
| Cash and cash equivalents | 1,191,590 | 1,191,590 | 0 |
| Total current assets | 2,744,927 | 2,744,927 | 0 |
| Total assets | 4,149,998 | 2, 747, 351 | 1,402,647 |
| Non-current liabilities | |||
| Bonds issued | 2,149,847 | 0 | 2,149,847 |
| Liabilities for pension plans | 5,292 | 0 | 5,292 |
| Lease liabilities | 341 | 0 | 341 |
| Negative fair values of derivative instruments | 12,949 | 0 | 12,949 |
| Deferred tax liabilities | 397 | 397 | 0 |
| Total non-current liabilities | 2,168,826 | 397 | 2,168,429 |
| Current liabilities | |||
| Bonds issued | 0 | 0 | 0 |
| Payables to related companies | 1,474,770 | 1,474,770 | 0 |
| Lease liabilities | 1,304 | 1,304 | 0 |
| Payables to banks | 5,731 | 5,731 | 0 |
| Income tax payables | 12,422 | 12,422 | 0 |
| Negative fair values of derivative instruments | 13,227 | 13,227 | 0 |
| Other liabilities | 10,435 | 10,435 | 0 |
| Accrued expenses and deferred income | 9,380 | 9,380 | 0 |
| Total current liabilities | 1, 527, 269 | 1, 527, 269 | 0 |
| Total liabilities | 3,696,095 | 1,527,666 | 2,168,429 |
21 Payables to banks
The payables to banks line item refers to current account overdraft.
22 Events after the reporting period
There were no significant events after the reporting period.
Annual Report 2024 Würth Finance Group
44
Würth Finance International B.V.
FINANCIAL STATEMENTS 2024
45
Annual Report 2024 Würth Finance Group
Company income statement
for the year ended at 31 December
in TEUR
Notes
2024
2023
Net income
23
66,698
65,432
Other operating income
13
731
410
Total operating income
67, 429
65,842
Wages and salaries
34
–12,322
–10,653
Social security charges
–1,069
–937
Amortisation of intangible and tangible fixed assets
24
–1,208
–1,144
Other operating expenses
35
–13,732
–13,035
Total operating expenses
–28,331
–25,769
39,098
40,073
Financial income
27
170,970
147, 576
Impairments of assets
18a
1,742
4,273
Financial expenses
27
–105,725
–97, 473
Profit before taxes
106,085
94,449
Income tax expense
–21,437
–18,634
Share in result from participating interests
25
1,602
3,254
Net profit for the year
86,250
79,069
Company balance sheet
for the year ended at 31 December
Before appropriation of profit
in TEUR
Notes
2024
2023
ASSETS
Non-current assets
Intangible assets
Software
24
0
0
Right-of-use assets
Right-of-use land and buildings
24
1,388
1,361
Property, plant and equipment
Operating equipment and furnishings
24
301
87
Financial assets
Participations in Group companies
25
32,391
32,017
Loans to related companies
4, 26
1,164,651
1,389,770
Positive fair values of derivative instruments
18b, 18c
5,293
10,193
Deferred tax assets
28
935
1,265
Total non-current assets
1,204,959
1,434,693
Current assets
Receivables from related companies
26
1,732,946
1, 337,668
Positive fair values of derivative instruments
18b, 18c
12,542
9,785
Other assets
29
4,260
4,458
Accrued income and prepaid expenses
15,658
11,340
Securities at amortised cost
7
186,426
112,949
Securities at fair value through profit or loss
6, 18a
72,541
44,865
Cash
1,430,125
1,191,521
Total current assets
3,454,498
2,712,586
Total assets
4,659,457
4,147,279
46
Financial Statements 2024 Würth Finance International B.V.
in TEUR
Notes
2024
2023
EQUITY AND LIABILITIES
Shareholders’ equity
Issued capital
16,000
16,000
Additional paid-in capital
5,000
5,000
Retained earnings
407,158
353,834
Net profit for the year
86,250
79,069
Total shareholders’ equity
32
514,408
453,903
Provisions
Liabilities for pension plans
14
3,571
2,487
Total provisions
3,571
2,487
Non-current liabilities
Bonds issued
30
2,155,764
2,149,847
Lease liabilities
245
240
Negative fair values of derivative instruments
18b, 18c
12,513
12,896
Total non-current liabilities
2,168,522
2,162,983
Current liabilities
Bonds issued
30
498,623
0
Payables to related companies
26
1,428,661
1,479,753
Lease liabilities
1,158
1,139
Payables to banks
33
675
5,731
Income tax payables
15
14,548
12,237
Negative fair values of derivative instruments
18b, 18c
10,168
12,693
Other liabilities
31
7, 350
6,973
Accrued expenses and deferred income
11, 773
9,380
Total current liabilities
1,972,956
1,527,906
Total equity and liabilities
4,659,457
4,147,279
47
Annual Report 2024 Würth Finance Group
Accounting policies used in preparing the
company Financial Statements
for the year ended at 31 December
Basis of preparation
The company Financial Statements have been prepared in
A subsequent share of the profit of the subsidiary is recog-
accordance with Part 9 of Book 2 of the Dutch Civil Code. In
nised only if and to the extent that the accumulated share of
accordance with the provisions of Section 362-8 of Book 2
the previously unrecognised loss has been made good.
of the Dutch Civil Code the accounting policies used are the
Information on the use of financial instruments and on relat-
same as those used in the notes to the consolidated Financial
ed risks for the Group was provided in the notes to the con-
Statements, prepared under IFRS as adopted by the Euro-
solidated Financial Statements.
pean Union, unless stated otherwise below. The Financial
Statements were prepared on 30 April 2025. Where the
The company Financial Statements are presented in EUR
notes in the company Financial Statements were similar to
thousands unless otherwise stated.
the notes in the consolidated Financial Statements, we refer
to the notes in the consolidated Financial Statements.
Changes in accounting policies
For details of changes in accounting policies, please refer to
Participations in related companies
the consolidated accounting principles.
Investments in subsidiaries are valued using the net asset val-
ue method, determined by applying the IFRS accounting
The company made use of the option to eliminate intercom-
policies as described in the consolidated Financial State-
pany expected credit losses against the book value of loans
ments. Under this method, subsidiaries are carried at the
and receivables to Group companies, instead of elimination
company’s share in their net asset value plus its share in the
against the investments in Group companies.
results of the subsidiaries and its share of changes recog-
nised directly in the equity of the subsidiaries as from the ac-
Equity interests
quisition date, determined in accordance with the IFRS ac-
Parent company
counting policies disclosed in the consolidated Financial
Würth Finance International B.V., Amsterdam, is the parent
Statements, less its share in the dividend distributions from
company of the companies as listed below and includes the
the subsidiaries. The company’s share in the results of the
financial data of these companies in its consolidated Financial
subsidiaries is recognised in the income statement. Since the
Statements, copies of which are available at cost from the
distribution of profits is not subject to restrictions, no legal re-
head office of Würth Finance International B.V., Amsterdam.
serve is included.
Fully owned companies
In connection with this, long-term interests are included if
• Würth Financial Services AG, Rorschach, Switzerland:
they, in substance, form part of the investor’s net investment
wholly owned subsidiary (2023: 100%)
in the subsidiary.
• Würth Invest AG, Chur, Switzerland:
wholly owned subsidiary (2023: 100%)
The percentages stated represent the equity interests held.
48
Financial Statements 2024 Würth Finance International B.V.
Notes to the company Financial Statements
for the year ended at 31 December
23 Net income
The net income consists of income from factoring activities amounting to TEUR 13,613 (2023: TEUR 13,573), commission and
service fee activities amounting to TEUR 32,168 (2023: TEUR 34,406) and trading activities amounting to TEUR 20,917
(2023: TEUR 17,453).
24 Intangible assets/right-of-use assets/property, plant and equipment
Intangible assets /right-of-use assets /property, plant and equipment are composed as follows:
At 31 December 2024
Additions
(disposals)
Acquisition incl. asset Acquisition
Accum.
Asset Amortisation
Accum.
Net book
cost retirement cost amortisation retirement for the year amortisation
value
in TEUR
2023
2024
2024
2023
2024
2024
2024
2024
Intangible assets
Software
1,470
–423
1,047
–1,470
423
0
–1,047
0
Total intangible assets
1,470
–423
1,047
–1,470
423
0
–1,047
0
Right-of-use assets
Right-of-use land and buildings
6,087
1,159
7,246
–4,726
0
–1,132
–5,858
1,388
Total right-of-use assets
6,087
1,159
7, 246
–4,726
0
–1,132
–5,858
1,388
Property, plant and equipment
Vehicles
442
145
587
–395
143
–71
–323
264
Art objects
34
0
34
0
0
0
0
34
Office equipment/installations
537
2
539
–531
0
–5
–536
3
Total property, plant and equipment
1,013
147
1,160
–926
143
–76
–859
301
At 31 December 2023
Additions
(disposals)
Acquisition incl. asset Acquisition
Accum.
Asset Amortisation
Accum.
Net book
cost retirement
cost amortisation retirement for the year amortisation
value
in TEUR
2022
2023
2023
2022
2023
2023
2023
2023
Intangible assets
Software
1,470
0
1,470
–1,470
0
0
–1,470
0
Total intangible assets
1,470
0
1,470
–1,470
0
0
–1,470
0
Right-of-use assets
Right-of-use land and buildings
4,941
1,146
6,087
–3,652
0
–1,074
–4,726
1,361
Total right-of-use assets
4,941
1,146
6,087
–3,652
0
–1,074
–4,726
1,361
Property, plant and equipment
Vehicles
442
0
442
–345
0
–50
–395
47
Art objects
34
0
34
0
0
0
0
34
Office equipment/installations
590
–53
537
–572
61
–20
–531
6
Total property, plant and equipment
1,066
–53
1,013
–917
61
–70
–926
87
49
Annual Report 2024 Würth Finance Group
25 Participations in Group companies
in TEUR
Net book value at 1 January 2023
30,674
OCI
–1,911
Share in profit/(loss) of participating interests
3,254
Net book value at 31 December 2023
32,017
Net book value at 1 January 2024
32,017
OCI
–1,228
Share in profit/(loss) of participating interests
1,602
Net book value at 31 December 2024
32,391
26 Transactions with related parties
Related party transactions were based on arm’s length terms and conditions.
At 31 December 2024
Parent
Associated
in TEUR
Total
companies
Subsidiaries
companies
Receivables from related parties
Loans to related companies
1,164,651
0
0
1,164,651
Receivables from related companies
1,732,946
26,938
9,887
1,696,121
Current accounts
605,186
17,082
462
587,642
Short-term loans
945,342
0
9,425
935,917
Factoring
182,418
9,856
0
172,562
Total receivables from related parties
2,897,597
26,938
9,887
2,860,772
Payables to related parties
Payables to related companies
1,428,661
401,593
13,101
1,013,967
Current accounts
703,387
1,593
6,306
695,488
Fixed-term deposits
725,274
400,000
6,795
318,479
Other payables to related parties
907
0
0
907
Total payables to related parties
1,429,568
401,593
13,101
1,014,874
At 31 December 2023
Parent
Associated
in TEUR
Total
companies
Subsidiaries
companies
Receivables from related parties
Loans to related companies
1,389,770
0
0
1,389,770
Receivables from related companies
1, 337,668
11, 457
39,900
1,286,311
Current accounts
479,121
0
669
478,452
Short-term loans
649,531
0
39,231
610,300
Factoring
209,016
11, 457
0
197, 559
Total receivables from related parties
2, 727, 438
11, 457
39,900
2,676,081
Payables to related parties
Payables to related companies
1,479,753
598,164
4,992
876,597
Current accounts
832,339
198,164
2,841
631,334
Fixed-term deposits
647, 414
400,000
2,151
245,263
Other payables to related parties
847
0
0
847
Total payables to related parties
1,480,600
598,164
4,992
877,444
50
Financial Statements 2024 Würth Finance International B.V.
27 Financial income and expenses
At 31 December 2024
in TEUR
Total
Parent Subsidiaries Associated Third parties
Financial income
Interest income from financing activities at amortised cost
78,047
0
0
78,047
0
Interest income from financing leasing activities at amortised cost
3,329
0
0
3,329
0
Interest income from liquid assets at amortised cost
64,736
55
1,178
26,541
36,962
Interest income from current accounts
27, 774
55
1,178
26,541
0
Interest income from bank accounts, time deposits and money market funds
36,962
0
0
0
36,962
Interest income from financial instruments at fair value through profit or loss
23,849
0
0
3,325
20,524
Valuation gains/(losses) from interest rate and cross-currency swaps (unrealised)
73
0
0
1,269
–1,196
Interest income from interest rate and cross-currency swaps
21,660
0
0
960
20,700
Other interest income from financial instruments
2,116
0
0
1,096
1,020
Dividends received
1,009
0
1,009
0
0
Total financial income
170,970
55
2,187
111,242
57, 486
Financial expenses
Interest expenses for current accounts and time deposits
40,890
15,299
14
25,577
0
Interest expenses for bonds issued
45,819
3,824
0
0
41,995
Interest expenses from financial instruments
18,416
208
0
2,612
15,596
Interest expenses from interest rate and cross-currency swaps
17, 799
0
0
2,339
15,460
Other interest expenses from financial instruments
617
208
0
273
136
Other interest expenses (third parties)
600
0
0
3
597
Total financial expenses
105,725
19,331
14
28,192
58,188
At 31 December 2023
in TEUR
Total
Parent Subsidiaries Associated Third parties
Financial income
Interest income from financing activities at amortised cost
68,690
0
0
68,660
30
Interest income from financing leasing activities at amortised cost
3,118
0
0
3,118
0
Interest income from liquid assets at amortised cost
53,951
5
149
29,104
24,693
Interest income from current accounts
29,258
5
149
29,104
0
Interest income from bank accounts, time deposits and money market funds
24,693
0
0
0
24,693
Interest income from financial instruments at fair value through profit or loss
21,817
0
0
4,613
17,204
Valuation gains / (losses) from interest rate and cross-currency swaps (unrealised)
0
0
0
0
0
Interest income from interest rate and cross-currency swaps
20,524
0
0
4,613
15,911
Other interest income from financial instruments
1,293
0
0
0
1,293
Dividends received
0
0
0
0
0
Total financial income
147, 576
5
149
105,495
41,927
Financial expenses
Interest expenses for current accounts and time deposits
34,663
12,187
16
22,434
26
Interest expenses for bonds issued
38,108
2,769
0
0
35,339
Interest expenses from financial instruments
23,988
404
0
5,683
17,901
Interest expenses from interest rate and cross-currency swaps
21,998
0
0
4,556
17, 442
Other interest expenses from financial instruments
1,990
404
0
1,127
459
Other interest expenses (third parties)
714
0
0
3
711
Total financial expenses
97, 473
15,360
16
28,120
53,977
51
Annual Report 2024 Würth Finance Group
28 Income tax
in TEUR
2024
2023
Deferred tax assets on cash flow hedges
935
1,265
Deferred tax assets
935
1,265
For other details see the consolidated Financial Statements, Note 15 Income tax.
29 Other assets
in TEUR
2024
2023
Receivables from third parties
4,103
4,301
Other assets
157
157
Total other assets
4,260
4,458
30 Bonds issued
For details see the consolidated Financial Statements, Note 8 Bonds issued.
31 Other liabilities
in TEUR
2024
2023
Payables for deliveries and services
1,658
2,629
of which to third parties
751
1,782
of which to related parties
907
847
Compensation-related liabilities
3,599
3,222
Other liabilities
2,093
1,122
Total other liabilities
7, 350
6,973
Other accrued expenses and deferred income primarily comprise accruals for services received but not invoiced during the
financial year.
52
Financial Statements 2024 Würth Finance International B.V.
32 Equity
Retained
Foreign
Issued
Additional
earnings
Cash flow
currency
in TEUR
capital paid-in capital (incl. net profit) hedge reserve
translation
Total
At 1 January 2023
16,000
5,000
387, 503
–7, 327
38
401,214
Net profit for the year
0
0
79,069
0
0
79,069
Foreign currency translation
0
0
0
0
141
141
Cash flow hedge accounting
0
0
0
1,918
0
1,918
Remeasurement gain /(loss) on defined benefit plans
0
0
–3,439
0
0
–3,439
Total comprehensive income for the year
0
0
75,630
1,918
141
77, 689
Dividend payments
0
0
–25,000
0
0
–25,000
At 31 December 2023
16,000
5,000
438,133
–5,409
179
453,903
At 1 January 2024
16,000
5,000
438,133
–5,409
179
453,903
Net profit for the year
0
0
86,250
0
0
86,250
Foreign currency translation
0
0
0
0
–250
–250
Cash flow hedge accounting
0
0
0
1,614
0
1,614
Remeasurement gain /(loss) on defined benefit plans
0
0
–2,109
0
0
–2,109
Total comprehensive income for the year
0
0
84,141
1,614
–250
85,505
Dividend payments
0
0
–25,000
0
0
–25,000
At 31 December 2024
16,000
5,000
497, 274
–3,795
–71
514,408
The Board of Directors proposed to allocate the net income of TEUR 86,250 to retained earnings.
33 Payables to banks
The payables to banks line item refers to current account overdraft.
53
Annual Report 2024 Würth Finance Group
34 Personnel expenses
The average number of staff (in FTEs) employed by the com-
In 2024 and 2023, no other forms of compensation
pany in 2024 was 70 (2023: 67), of whom 52 were work-
(post-employment benefits or other long-term benefits,
ing outside the Netherlands (2023: 51).
termination benefits, share-based payments) were paid to
key management.
The key management comprised the Managing Directors of
the company.
In financial year 2024, fees of TEUR 400 were paid to
members of the Board of Directors (2023: TEUR 350).
Remuneration for the Managing Directors of the company
totalled TEUR 1,863 in 2024 (2023: TEUR 1,579).
For more details see the consolidated Financial Statements,
Note 14 Personnel expenses.
35 Audit fees
The cost of the Group for the external auditor, the audit organisation and the entire network to which the audit organisation
belongs charged for the financial year is set out below.
in TEUR
2024
2023
BDO Audit & Assurance B.V.
Audit of the Financial Statements
280
0
Other audit engagements
0
0
Total
280
0
in TEUR
2024
2023
Ernst & Young
Audit of the Financial Statements
0
280
Other audit engagements
49
52
Total
49
332
The fees stated above for the audit of the Financial Statements are based on the total fees for the audit of the 2024 Financial
Statements, regardless of whether the procedures were already performed in 2024.
36 Events after the reporting period
There were no significant events after the reporting period.
Amsterdam and Rorschach, 30 April 2025
R. Fust
P. Guzinski
Managing Director
Managing Director
54
Financial Statements 2024 Würth Finance International B.V.
Other information
for the year ended at 31 December
Articles of Association provisions governing profit appropriation
The company’s Articles of Association provide for the net profit for the year to be fundamentally put at the disposal of the
shareholders.
Other branches
The company has the following branch:
Würth Finance International B.V.
Rorschach Branch
Churerstrasse 10
9400 Rorschach
Switzerland
55
Annual Report 2024 Würth Finance Group
Independent auditor’s report
To: the shareholder and board of directors of
Würth Finance International B.V.
Report on the audit of the financial statements 2024
included in the annual report
Our opinion
We have audited the financial statements 2024 of Würth Finance International B.V. based in Amsterdam. The financial state-
ments comprise the consolidated financial statements and the company financial statements.
In our opinion:
• the accompanying consolidated financial statements give a true and fair view of the financial position of Würth Finance
International B.V. as at 31 December 2024 and of its result and its cash flows for 2024 in accordance with International
Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil
Code;
• the accompanying company financial statements give a true and fair view of the financial position of Würth Finance Inter-
national B.V. as at 31 December 2024 and of its result for 2024 in accordance with Part 9 of Book 2 of the Dutch Civil
Code.
The consolidated financial statements comprise:
1. the consolidated statement of financial position as at 31 December 2024;
2. the following statements for 2024: the consolidated income statement, the consolidated statements of comprehensive
income, changes in equity and cash flows; and
3. the notes comprising material accounting policy information and other explanatory information.
The company financial statements comprise:
1. the company balance sheet as at 31 December 2024;
2. the company profit and loss account for 2024; and
3. the notes comprising a summary of the accounting policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under
those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report.
We are independent of Würth Finance International B.V. in accordance with the EU Regulation on specific requirements re-
garding statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act),
the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional
Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands.
Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics
for Professional Accountants).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
56
Financial Statements 2024 Würth Finance International B.V.
Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opin-
ion thereon. The following information in support of our opinion was addressed in this context, and we do not provide a sepa-
rate opinion or conclusion on these matters.
Materiality
Based on our professional judgement we determined the materiality for the financial statements as a whole at € 46,000,000.
The materiality is calculated as 1% of the total assets, which we consider to be the principal considerations for users of the fi-
nancial statements in assessing the financial performance of the Company. We have also taken into account misstatements
and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons.
We agreed with the board of directors that misstatements in excess of € 2,300,000, which are identified during the audit,
would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.
Scope of the group audit
Würth Finance International B.V. is at the head of a group of components. The financial information of this group is included
in the financial statements of Würth Finance International B.V.
Based on our risk assessment, we determined the nature, timing and extent of audit procedures to be performed, including de-
termining the components at which to perform audit procedures.
Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we selected group entities for
which an audit had to be carried out on the complete set of financial information or specific items.
We have performed full scope audit procedures at Würth Finance International B.V. For the other group entities, Würth
Financial Services AG and Würth Invest AG, we performed, amongst other, audit procedures to corroborate our assessment
that there were no significant risks of material misstatements within these components. And additionally performed audit
procedures for specific financial statement areas above our threshold.
By performing the procedures mentioned above at components, together with additional procedures at group level, we have
been able to obtain sufficient and appropriate audit evidence about the group’s financial information to provide an opinion
on the financial statements.
Audit approach going concern
The financial statements are prepared on the basis of the going concern assumption, which assumes that Würth Finance
International B.V. will continue to operate as a going concern for the foreseeable future. As explained in the section “Outlook
for 2025” in the report of the Board of Directors and the general accounting principles in the financial statements, the manag-
ing directors have carried out a going concern assessment and has not identified any events or circumstances that may cause
reasonable doubt on the entity's ability to continue as a going concern (hereinafter: ‘going concern risks’).
Our procedures to evaluate the going concern assessment of the managing directors include:
• Considered whether the managing directors’ going concern assessment contains all relevant information that we have
knowledge of and inquired the board on key assumptions and estimates. In doing so, we have paid attention, among the
other things to the recoverability of the loans;
• Obtained information from the managing directors about its knowledge of going concern risks beyond the period of the
going concern assessment carried out by the board.
Our audit procedures indicated that the going concern assumption used by the managing directors is appropriate and no
going concern risks have been identified.
Audit approach fraud risks and non-compliance with laws and regulations
We identified and assessed the risks of material misstatements of the financial statements due to fraud and non-compliance
with laws and regulations. During our audit we obtained an understanding of the entity and its environment and the compo-
nents of the system of internal control, including the risk assessment process and managing directors’ process for responding
to the fraud risks and monitoring the system of internal control and how the board of directors exercises oversight, as well as
the results thereof. We refer to section “Risk and management and control” of the annual report for the managing directors’
risk assessment after consideration of potential fraud risks.
57
Annual Report 2024 Würth Finance Group
We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk assessment, as
well as among others the code of conduct of the Würth Group including the Speak Up reporting system. We evaluated the
design and the implementation and, where considered appropriate, tested the operating effectiveness, of internal controls de-
signed to mitigate fraud risks. Where applicable, we have communicated deficiencies in internal control in writing to the man-
aging directors and the board of directors.
As part of our process of identifying risks of material misstatements of the financial statements due to fraud, we evaluated
fraud risk factors with respect to fraudulent financial reporting, misappropriation of assets and bribery and corruption. We
evaluated whether these fraud risk factors indicate that a risk of material misstatement due fraud is present.
We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures
and evaluated whether any findings were indicative of fraud or non-compliance.
We considered available information and made enquiries of relevant executives and managing directors. Our audit proce-
dures did not lead to indications or suspicions for fraud potentially resulting in material misstatements.
The fraud risks identified by us and the specific procedures performed are as follows:
Management override of control
Description:
Our audit approach and observations:
Management is in a unique position to perpetrate fraud because management is
We:
able to manipulate accounting records and prepare fraudulent financial statements
•
evaluated the design and existence of internal control measures in the processes
by overriding controls that otherwise appear to be operating effectively.
for generating and processing journal entries and making estimates, assuming a
Therefore, in all our audits, we pay attention to the risk of management override of
risk of management override of controls of that process.
controls for;
•
assessed the process surrounding the preparation of financial statements;
•
selected journal entries based on risk criteria, such as manual journal entries.
Journal entries and other adjustments made throughout the year and during the
We performed audit procedures on these journal entries, in which we also paid
course of preparing the financial statements.
attention to significant transactions outside the ordinary course of business;
• Estimates and estimation processes.
•
investigated all manual journal entries for (interest) income above our threshold.
• Significant transactions outside the ordinary course of business.
•
performed audit procedures on significant estimates, which mainly consists of the
valuation of the loans issued to group companies as disclosed in Note 4 of the
In this context, we paid particular attention to a possible misstatement relating to im-
financial statements.
portant judgment areas and significant accounting estimates related to the valuation
of the loans, issued to related parties as disclosed in Note 4 of the financial state-
We also refer to our procedures regarding the valuation of loans as included in the
ments.
key audit matter.
The risk of fraudulent financial reporting due to manual revenu postings
Description:
Our audit approach and observations:
Based on our professional standards, we recognize an presumed fraud risk regard- We:
ing revenue recognition. Based on our risk analysis, we do acknowledge an in-
•
evaluated the design and existence of the internal control measures with regard to
creased (fraud) risk in manual revenue postings.
the revenue process and determined operating effectiveness of these internal
control measures;
•
analyzed all manual journal entries for (interest) income above our threshold.
No findings resulted from these procedures;
•
Reconciled the outstanding balance for intercompany loans as per year end to the
amounts according to the consolidation monitor in SAP, in which all intercompany
balances for all Würth entities are monitored and differences are explained.
Our audit procedures did not reveal any specific indications of fraud or suspicions of
fraud in respect of management override of controls, potentially resulting in material
misstatements.
58
Financial Statements 2024 Würth Finance International B.V.
Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements. We have communicated the key audit matters to the board of directors. The key audit matters are not a compre-
hensive reflection of all matters discussed.
Valuation of loans issued
Description:
Our audit approach:
We consider the valuation of the loans issued to related companies at the amount
We have performed the following audit procedures with respect to the correct calcu-
EUR 1,165 million as disclosed in note 4 and 16 of the financial statements and the lation of the expected credit loss provision:
receivables from related companies at the amount EUR 1,733 million as disclosed in
note 16 of the financial statements, combined representing 62% of the balance
•
Confirmed our understanding of the company’s data, assumptions and method
sheet total, a key audit matter. We identified this as a key audit matter due to the
used to determine the expected credit losses on the loans to related companies
size of the loans issued and due to the material impact a possible impairment may
and receivables from related companies.
have on the income statement.
•
Evaluated the information derived from credit rating agency Moody's and
Initially, loans issued to and the (interest) receivables from related companies are
determined that the managing directors measured the allowance for expected
recognized at its fair value and subsequently carried at amortized cost using the ef-
credit losses, taking into consideration the external credit rating of Würth Group
fective interest method. The managing directors recognized the expected credit loss
and events subsequent to 31 December 2024
provision with regard to the loans issued to and the (interest) receivables with relat-
•
Evaluated the probability of default rate derived from Bloomberg.
ed companies in accordance with IFRS 9 in total amounting to EUR 3,1 million.
•
Evaluated the loss given default rate.
•
Assessed the accuracy of the assumptions used by the company in the expected
credit loss calculation and assessed the accuracy of the calculated expected
credit loss.
•
Inspected the standard format loan agreements entered into between the
company and related companies.
•
Reviewed news reports on Google and Reuters of the company and the Würth
Group
•
Searched and evaluated the information for investors on the website of Würth
Group.
•
Discussed the subsequent developments in the financial position and the cash
flows with the managing directors and the Board of Directors of the company.
Assessed the adequacy of the disclosures in the financial statements relating to both
the loans issued to and current account receivables from related companies.
Report on the other information included in the annual report
In addition to the financial statements and our auditor’s report thereon, the annual report contains other information that
consists of:
• the report of the board of directors;
• other information as required by Part 9 of Book 2 of the Dutch Civil Code;
Based on the following procedures performed, we conclude that the other information:
• is consistent with the financial statements and does not contain material misstatements;
• contains all the information regarding the board of directors report and the other information as required by Part 9 of Book
2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial
statements or otherwise, we have considered whether the other information contains material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch
Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of
the financial statements.
The managing directors are responsible for the preparation of the other information, including the report of management in
accordance with Part 9 of Book 2 of the Dutch Civil Code and other information as required by Part 9 of Book 2 of the Dutch
Civil Code.
Report on other legal and regulatory requirements and ESEF
Engagement
We were engaged by the board of directors as auditor of Würth Finance International B.V. as on 17 May 2024 for the audit
for the year 2024.
No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements
regarding statutory audit of public-interest entities.
59
Annual Report 2024 Würth Finance Group
European Single Electronic Format (ESEF)
Würth Finance International B.V. has prepared its annual report in ESEF. The requirements for this are set out in the Delegated
Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting
format (hereinafter: the RTS on ESEF).
In our opinion, the annual report prepared in XHTML-format, including the (partly) marked-up consolidated financial state-
ments as included in the reporting package by Würth Finance International B.V., complies in all material respects with the RTS
on ESEF.
The managing directors are responsible for preparing the annual report including the financial statements in accordance with
the RTS on ESEF, whereby the managing directors combines the various components into one single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package com-
plies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N 'Assurance-opdrachten
inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument' (assurance engagements
relating to compliance with criteria for digital reporting).
Our examination included among others:
• obtaining an understanding of the entity's financial reporting process, including the preparation of the reporting package;
• identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and
designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion includ-
ing:
• obtaining the reporting package and performing validations to determine whether the reporting package containing the
Inline XBRL instance document and the XBRL extension taxonomy files have been prepared in accordance with the techni-
cal specifications as included in the RTS on ESEF;
• examining the information related to the consolidated financial statements in the reporting package to determine whether
all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.
Description of responsibilities regarding the financial statements
Responsibilities of the managing directors and the board of directors for the financial statements
The managing directors are responsible for the preparation and fair presentation of the financial statements in accordance
with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the managing directors are responsible for such in-
ternal control as the managing directors determine is necessary to enable the preparation of the financial statements that are
free from material misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, the managing directors is responsible for assessing the company’s abili-
ty to continue as a going concern. Based on the financial reporting frameworks mentioned, the managing directors should
prepare the financial statements using the going concern basis of accounting, unless the managing directors either intends to
liquidate the company or to cease operations, or has no realistic alternative but to do so.
The managing directors should disclose events and circumstances that may cast significant doubt on the company’s ability to
continue as a going concern in the financial statements.
The board of directors is responsible for overseeing the company’s financial reporting process.
Our responsibilities for the audit of the financial statements
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate au-
dit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material
misstatements, whether due to fraud or error, during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could rea-
sonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materi-
ality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements
on our opinion.
60
Financial Statements 2024 Würth Finance International B.V.
We have exercised professional judgement and have maintained professional scepticism throughout the audit, in accordance
with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others:
• identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, de-
signing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and ap-
propriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control;
• obtaining an understanding of internal control relevant to the audit 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;
• evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by managing directors;
• concluding on the appropriateness of the managing director’s use of the going concern basis of accounting, and based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are re-
quired to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our au-
ditor’s report. However, future events or conditions may cause a company to cease to continue as a going concern;
• evaluating the overall presentation, structure and content of the financial statements, including the disclosures; and
• evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business units within the group as a basis for forming an opinion on the financial state-
ments. We are also responsible for the direction, supervision and review of the audit work performed for purposes of the
group audit. We bear the full responsibility for the auditor's report.
We communicate with the board of directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant findings in internal control that we identify during our audit. In this respect
we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation on specific re-
quirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our
audit opinion in this auditor’s report.
We provide the board of directors with a statement that we have complied with relevant ethical requirements regarding inde-
pendence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine the key audit matters: those matters that were of
most significance in the audit of the financial statements. We describe these matters in our auditor’s report unless law or regu-
lation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is
in the public interest.
Amstelveen, 30 April 2025
For and on behalf of BDO Audit & Assurance B.V.,
drs. M.F. Meijer RA
61
