Further notes

The income statement for the financial year shows expenses totaling 139.8 million Euro (2002: 138.2 million Euro*) for research and development.

In the year under review, an average of 28,416 (2002: 27,728) persons were employed in the following functions:

 

*) The 2002 figure for research and development expenses has been adjusted to reflect a change in cost allocation.

The above figures include a pro-rata share of the employees of companies consolidated on a pro-rata basis totaling 2,498 (2002: 2,622) persons.

The total remuneration of members of the Board of Partners amounted to 0.1 million Euro (2002: 0.1 million Euro).

The total remuneration of members of the Management Board amounted to 1.7 million Euro (2002: 2.6 million Euro). Total provisions for pensions for members of the Management Board amounted to 14.4 million Euro (2002: 12.8 million Euro).

The remuneration paid to former members of the Management Board or their surviving dependants totaled 2.1 million Euro (2002:
2.6 million Euro). Total provisions for pensions for former members of the Management Board and their surviving dependants amounted to 25.4 million Euro (2002: 25.8 million Euro).

The members of the Board of Partners and Management Board of Freudenberg & Co. are listed here.

In addition to their functions as members of the Management Board of Freudenberg and Co., Dr. Dr. Peter Bettermann and Dr. Hans-Jochen Hüchting are also shareholders of Freudenberg Stiftung GmbH, Weinheim.

Freudenberg Stiftung GmbH is a foundation established with the object of holding a donated participation of 5.2 million Euro (2002: 5.2 million Euro) in Freudenberg & Co. and using the income from this participation for benevolent and charitable purposes. Any surplus liquid funds held by the foundation are invested in Freudenberg & Co. at normal market conditions and the income from these funds is used for the purposes of the foundation.
 
The following major events after the balance sheet date took place up to March 12, 2004, when the annual report was approved for publication by the Board of Partners:

With effect from February 27, 2004, Freudenberg acquired substantial areas of business of the Burgmann group with headquarters in Wolfratshausen. The sales of this group total about 300 million Euro and the companies employ about 3,300 associates. The acquisition has added high-grade mechanical seals to the Freudenberg seals and vibration control technology range.

In addition, Freudenberg acquired the Chem-Trend group with headquarters in Howell, Michigan, USA, in February 2004. The annual sales of this group amount to about 95 million Euro, with a workforce of about 400. By acquiring the world leader in special release agents, Freudenberg has reinforced its specialities business area.

 

Weinheim, March 15, 2004

FREUDENBERG & CO.
KOMMANDITGESELLSCHAFT
Management Board