Page 3 - Business-Principles

FreudenBerg –
a diversiFied Family enTerPrise
1. The Freudenberg Group is a very wide- ly diversified enterprise. It developed organically, by seizing favorable op- portunities – like the invention of the Simmer ring and of nonwovens in the thirties – and by systematic expan- sion of its business activities – like the thrust into foreign markets undertaken during the fifties.
Today, the lines of business operating within the group are very different in terms of their markets, their technolo- gies, and other special features. How- ever, about three-quarters of our sales go to customers from the processing industries – and there is thus a shared core of business thinking.
The Freudenberg Group must remain broadly diversified; it is this structure which lends it its valuable stability. In belonging to the group as a whole, the various business operations gain a special, shared identity and a support permitting them to gear their strategy to long-term planning.
2. The Freudenberg Group must remain a one-hundred- percent family enter- prise. This means a high equity capital- ization of at least 40 % is essential. This in turn necessitates not only adequate profitability, but also a proper balance between capital investments and cash flow.
3. The group is open to joint ventures with other companies, if these will use- fully complement or further strength- en our business operations. Relation- ships with our associates in these ventures must be based on fairness and personal trust.
4. The Freudenberg Group has its head- quarters at the original Weinheim lo- cation, which forms part of its identi- ty, and where substantial resources of knowledge, tradition and infrastruc- ture are gathered in one place. Wein- heim is to remain a significant produc- tion location in the future as well. This requires that the Weinheimbased fa- cilities, like all the others at home and abroad, hold their own against their competitors in terms of performance and costs.
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