CORPORATE RESPONSIBILITY REPORT 2018

Letter from the Chairman

NEW PATHS TOWARDS A

FUTURE

THAT IS "ENKELFÄHIG"

Thomas Schmidt

Chairman of the Management Board

Dear shareholders,

As a family-owned company, we have been tasked by our shareholders to ensure through our business activities that future generations will still be able to thrive on the Planet Earth – ideally under even better conditions than the ones we currently enjoy. This encompasses not only the financial element, but also social and environmental concerns as well. The values that the family and the Company share are firmly rooted in the belief that the one thing – running a profitable business – goes hand-in-hand with the other – protecting the environment and engaging with the community.

A stance such as ours does not manifest itself through proclamation, but rather through action. Systematic, consistent action. As a family equity company, we adopt this approach at the earliest stages of value creation: we consider only those investments which already make a positive contribution to the environment and society, or will be able to do so in the future. We engage the companies in our portfolio in an earnest dialogue about sustainability. This report aims to show you just how we go about achieving this.

There are many ways in which Haniel can improve in the area of Corporate Responsibility. Yet running a business also means setting priorities. With that in mind, we again recently asked our stakeholders which issues they consider most urgent. Their opinion converges with our experience: as a portfolio manager, our greatest lever is the ability to set CR management requirements for our divisions and ensure that they are complied with. In this way, we also live up to the principles underpinning our membership in the UN Global Compact. This is because we not only pledge to uphold recognised principles such as human rights, labour standards, environmental protection and the fight against corruption, we also help to propagate them within the Haniel Group.

This enables us to bring our divisions along in our quest for a future that is "enkelfähig" – Our journey will require the courage to take unfamiliar paths. I hope you will join us along the way.

Duisburg, 1 July 2019

Thomas Schmidt

Chairman of the Management Board


HANIEL AS A FAMILY-EQUITY INVESTOR

WE DEVELOP

COMPANIES

As a family-equity company, Haniel is building a portfolio with market leading companies. The rule is: We combine the professionalism of a private equity investor with the understanding of values of a family business.

Haniel has set a goal of increasing the portfolio to up to ten equity investments. Only those investments that fit with the Company and its values are considered. An investment filter serves to assess the potential business models as to the extent to which they make a contribution to the diversification of the Haniel portfolio, are sustainable and viable for the future, and generate a reasonable value contribution. Our goal is to find companies that can develop into market leaders with our help.

We support the growth of our portfolio companies. There is no blueprint for this; rather, we find an individual path for each division. We analyse precisely the current stage of the company’s growth and identify the core strategic themes. For example, portfolio companies on a dynamic growth path receive support through investment capital and know-how in financing, corporate governance, or HR. We can also offer mature companies targeted added value such as with respect to the digital transformation.


DIVISIONS AND FINANCIAL INVESTMENTS

OVERVIEW:

HANIEL’S PORTFOLIO

As a family-equity company Haniel is building a portfolio with market-leading companies. The rule is: We combine the professionalism of a private equity investor with the understanding of the values of a family business.

DIVISION

bekaertdeslee

100%

EQUITY INTEREST

BekaertDeslee is a globally leading specialist for the development and manufacturing of woven and knitted mattress textiles and ready-made mattress covers.

DIVISION

cws

82,19%

EQUITY INTEREST

CWS is one of the leading international service providers of hygiene and workwear solutions.

DIVISION

elg

100%

EQUITY INTEREST

ELG is a global leader in the trading, processing and recycling of raw materials for the stainless steel industry as well as high performance materials such as superalloys, titanium and carbon fibres.

DIVISION

Optimar

100%

EQUITY INTEREST

Optimar is a global leader for automated fish handling systems for use on ships, on land and in aquacultures.

DIVISION

Rovema

100%

EQUITY INTEREST

ROVEMA is a global leader in the manufacturing of packaging machines and equipment for a wide variety of products and applications.

DIVISION

TAKKT

50,25%

EQUITY INTEREST

TAKKT bundles a portfolio of B2B direct marketing specialists for business equipment in Europe and North America in a single company.

FINANCIAL INVESTMENT

ceconomy

22,71%

EQUITY INTEREST

CECONOMY is Europe’s leading platform for companies, concepts and brands in the sector of consumer electronics.

FINANCIAL INVESTMENT

metro

15,20%

EQUITY INTEREST

METRO is one of the leading international companies in the wholesale and food service sector.


This section includes the following GRI indicators: