Wolford : Annual Financial Report 2020 PDF

ANNUAL FINANCIAL REPORT

According to § 82 Para 4 Exchange Act

of

WOLFORD AG

BREGENZ

Reporting date 31.12.2020

For the Financial Year 2020

TABLE OF CONTENTS

WOLFORD GROUP

- Group Management Report 2020	4
-	Consolidated Financial Statements 2020	24
- Statement by the Management Board	82
-	Auditor's Report	83

WOLFORD AG (AVAILABLE ONLY IN GERMAN)

- Jahresabschluss der Wolford AG 2020	90
- Lagebericht der Wolford AG 2020	109
-	Erklärung des Vorstandes	120
-	Bestätigungsvermerk	122

WOLFORD GROUP

W O L F O R D

A N N U A L F I N A N C I A L R E P O R T 2 0 2 0

Management Report

Group Information

Wolford in Kürze

Founded in the Austrian city of Bregenz in 1950, Wolford designs, manufactures, and sells luxury legwear and bodywear. It designs and manufactures its products exclusively in Europe at two proprietary locations in Austria and Slovenia and in accordance with the highest environmental standards (partner to the bluesign® system). With its 240 monobrand points of sale (POS) and more than 3,000 retail partners, the brand is represented in 45 countries worldwide. Overall, the Wolford Group has a total workforce of 1,169 employees (FTE), of which 478 employees (FTE) at its headquarters in Austria.

Products meet the highest quality standards

Wolford generates around 41% of its revenues with its core Legwear product group, to which all other product groups are aligned. The second-largest product group is Ready-to-wear, which includes figure-embracing products such as bodies and shirts (bodywear), as well as dresses and pullovers. The Legwear and Bodywear product groups are based on a special round-knitting technology that was developed by Wolford and is being continually enhanced. This forms the basis for the unique comfort and quality of Wolford's products. These two product groups are complemented by a select offering of decorative and in some cases figure-shaping lingerie. The collections are supplemented with a small selection of accessories such as scarves and bracelets, which contribute revenues in a low single-digit million euro range.

Wolford makes a distinction between fashionable Trend products and the Essential collection, which includes all of its timeless classics, such as the Satin Touch tights offered since 1988 already.

Overall, Wolford launches two collections with Trend products onto the market each calendar year. One collection covers the spring/summer period and the other is destined for the fall and winter. Depending on the collection, four to five delivery intervals take place with new products. Backed up by suitable communications, these are intended to create fresh momentum at the sales areas.

REVENUES BY PRODUCT GROUP

	4	56
		1	Legwear 41 %
		1	2	Ready-to-wear 30 %
3		3	Lingerie 14 %
			4	Accessories 14 %
			5	Beachwear 1 %
		2	6 Trading goods 1 %

Wolford's business model

The Wolford Group's business model covers the entire value chain - from design and development via production through to global omni-channel distribution including proprietary boutiques. That makes the company highly autonomous and enables it to react quickly, for example to the latest fashion trends. The company is supported by external partners and selected suppliers in sections of its

M A N A G E M E N T R E P O R T

PA G E 4 - 5

Lingerie and Ready-to wear ranges. Tasks relating to product development are centralized at the company's headquarters in Bregenz.

When developing a new collection, product management, the design team, and product development all work hand in hand. Product management analyzes trends and identifies the products that will be in demand in the market - these findings then form the basis for the work performed by the design team. The close cooperation between design and product development in turn results in a stream of new products, often based on new production methods, such as 3D printing or the adhesive technology developed by Wolford and now patented. "Pure Tights", the world's first glued tights, are one result of this cooperation.

Product and merchandise management also comprises demand planning for the retail sales areas at proprietary boutiques and for wholesale customers. This department determines which articles have to be produced in which sizes and colors and for which retail areas. It also controls the flow of goods from the warehouse to retail areas.

In procurement, it is nearly all about materials. The raw materials, in particular yarns, semi- finished products and trading goods in the areas of lingerie, ready-to-wear and care masks, are procured from longstanding partners with identical quality- and innovation-standards as Wolford. Yarns are particularly also purchased in Japan, a country known for its innovative materials. All raw materials are stored at the company's headquarters in Bregenz and prepared here for subsequent production and assembly.

Finished products are stored in three warehouses - at the central warehouse in Bregenz, which also supplies the online business in Europe, and in two other warehouses in the US and China. The warehouse in the US supplies the online business in the American market, while that in China supplies the Asian region.

Product	Product	Purchasing	Production	Logistics	Distribution
Development	Management