Page 6 - Annual Report 2019

Supervisory Board Report
Group Management Report
Consolidated Financial Statements
Annexes

Group Management Report for the 2019 Fiscal Year

1. Group fundamentals
1.1. Business model
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
divisions, 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
six countries 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 dyed yarns and
threads with a focus on applications for technical fabrics and apparel. Tailored to meet the
needs of its customers, HOFTEX develops and dyes both traditional yarns and threads and numerous
specialised yarns. 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 of decorative fabrics.
For over 50 years it has maintained a strong position in a sector where the critical success
factors are 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 operating 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.

The TENOWO division with sites in Europe, North America and China is a market leader in the
development and manufacturing of innovative technical textiles and nonwovens, demonstrating
that the modern textile industry in Germany can still achieve success. 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, for medical applications and the garment
trade.

1.2. Group segments
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),
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.

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