Welfare services and institutions for employees

Employee pension schemes in the Freudenberg Group comprise both defined contribution schemes and defined benefit schemes. Defined-contribution pension plans have no obligations other than the payment of contributions. Contributions paid are expensed under personnel expenses and totaled 2.4 million Euro for fiscal 2003. Net pension obligations for the year under review rose by 6 million Euro to 319 million Euro.

Furthermore, the company provides welfare services concerning housing support and a relief fund for employees of Carl Freudenberg KG successor companies. In 2003, the housing support fund set up in 1949 assisted 33 employees in purchasing or building residential property by granting direct loans. 348 consultations were conducted by the independent real estate financing service. 63 loans relating to residential properties with a total volume of 540,000 Euro were granted to associates from the draw-down residential properties loan agreement. The housing fund also provides advice to associates who wish to save through a savings and loan agreement and arranges special acquisition fee terms. In the year under review, 468 residential property loan agreements for a total of 6.7 million Euro were concluded. Assistance has been provided for some 13,000 properties since the institution was first set up.

Unterstützungskasse Freudenberg e.V. (Freudenberg relief fund) provides hardship assistance to employees. Payments are voluntary and are usually granted in exceptional circumstances such as sickness, disability or other acute hardship. Apart from financial assistance, the relief fund also offers employees assistance in dealing with various welfare problems, including a weekly debt counseling surgery. In 2003, hardship relief totaling 227,560 Euro was granted in 360 cases.