Annual Report 2004

200_ir_teaser.jpg

Annual Report 2004

We are pleased to present tesa's business development and the first audited balance sheet of the tesa Group. The balance sheet also marks an important milestone in the short history of our young Company: As of January 1, 2004, the carve-out of all tesa companies was completed on schedule. This means that the tesa Group now forms a complete, separately structured and legally independent corporate entity within the Beiersdorf Group.

The facts and figures also confirm that we were right to take this course of action. In spite of the difficult economic environment and the additional work resulting from the carve-out, tesa has continually extended its market position and significantly increased its profitability in the past three years. Adjusted for currency translation effects and on a like-for-like basis, sales increased by 5.4% in 2004. The EBIT margin rose to 7.1%.

tesa’s success is firmly based on its four strategic pillars: increased innovation, presence in growth regions, development of new application areas, and the development and Implementation of new solvent-free technologies. This strategy will continue to ensure the success of tesa’s business in the future. We are focusing in particular on the reinforcement of growth outside Europe.

Core projects started in 2004 include the continuous build-up of a specialist sales force in the Americas and Asia, and the establishment of a production facility in the high-growth Chinese market. These measures will also further strengthen the position of the tesa Group within Germany, which is why they will be accompanied by increases in capacity at our facilities in Germany.

We would like to thank all employees worldwide for their contribution to this success. We also want to take this opportunity to thank our customers, business partners and our shareholder Beiersdorf for their support and the trust that they have placed in us.