Management Report of the Freudenberg Group - Report of the Management Board

In 2003, the Freudenberg Group reported sales of 3,867 million Euro (2002: 3,918 million Euro). Consolidated profit amounted to 93 million Euro (2002: 137 million Euro). At December 31, 2003, the Group’s workforce totaled 28,479, 786 higher than at year-end 2002.

 Figure: Development in gross domestic product in percent

The backdrop to business by the Freudenberg Group may be summarized as follows:

• Global economic situaion
• Products and markets
• Consolidated sales
• The consolidated group
• Minority interests and joint ventures
• Financing and consolidated profit
• Cash flow from investing activities and personnel expenses
• Risk management
• Prospects for 2004