Page 8 - Hoftex Annual Report 2018 EN

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Letter to Shareholders Supervisory Board Report
Group Management Report Consolidated Financial Statements Annexes
The HOFTEX GROUP AG, established in 1853 with its registered office in Hof (Bavaria), is a group of companies operating in the global textile industry. The Hoftex Group is among Europe’s largest textile companies with a 160-year history in the global textile trade. During this time, the Group has grown in several stages from a conventional textile manufacturer to a diversified niche supplier of highly innovative textile products. The Group comprises the HOFTEX, NEUTEX and TENOWO divisi- ons, which specialise in the development, production and sale of innovative textile products for a wide range of applications. The companies of the Hoftex Group are active on three continents in five coun- tries at a total of eleven manufacturing and sales locations, offering customers worldwide their services as a trusted partner.
The HOFTEX division represents the origins of today’s Hoftex Group and offers traditional products from the spinning sector, such as yarns and threads, with a focus on applications for technical fabrics and apparel. Tailored to meet the needs of its customers, HOFTEX develops and manufactu- res numerous specialised textiles, such as yarns for tyre production, in addition to traditional yarns and threads. The central location of its production and development facilities in Germany guarantees short lead times and on-schedule deliveries.
The NEUTEX division includes segments for weaving, dyeing and finishing decorative fabrics and has for the past 50 years maintained a strong position in a sector where critical success factors include creativity, the ability to keep pace with changes in the zeitgeist of local markets, rapid development and lead times as well as strong, fast-paced innovation. Today, as a premium systems supplier ope- rating on a global scale, NEUTEX manufactures and markets decorative fabrics as yard goods as well as ready-made household textiles. It also supplies innovative sun-protective textiles to industrial customers for further processing.
Group Management Report for the 2018 Fiscal Year
1. Group fundamentals
1.1. Business model
The TENOWO division with sites in Europe, North America and China is a market leader in the deve- lopment and manufacturing of innovative technical textiles and nonwovens, demonstrating that the modern textile industry in Germany can still achieve success with steady growth rates. TENOWO develops and manufactures products such as acoustic nonwovens for the automotive industry as well as nonwoven textiles for the construction industry, the cable industry or the garment trade.
The Hoftex Group is managed by strategic business units in the form of divisions. These are broken down by their specific manufacturing technologies and products in the HOFTEX (yarns & fabrics), NEUTEX (home deco) and TENOWO (nonwovens) divisions. HOFTEX GROUP AG is responsible for the Group’s global strategic direction in its role as the holding company. Moreover, HOFTEX GROUP AG performs core duties for the Group’s companies, including purchasing, human resources, corporate finance and accounting, taxes and finances, Group financial control, IT, legal and plant engineering.
With its nine members, the Supervisory Board advises the Management Board and oversees its management activities. The Supervisory Board must be consulted in all decisions material to the company, including evaluating the single-entity and consolidated annual financial statements.
1.2. Group segments