In addition to its ongoing efforts to create value for shareholders through its operations in the Doors business, Arbonia AG is intensifying its efforts to increase transparency with regard to its sustainability performance as well as its corporate governance.
Arbonia AG has a market-leading position in the core markets of Central Europe with its long-established companies. Following the integration of the former Sanitary Equipment division into the Wood and Glass Solutions business units, this applies to both business units. With our diverse areas of focus, we can offer our discerning customers a uniquely comprehensive product range from a single source. From shower enclosures to fire doors, from strike plates to system doors and from sound insulation to smart doors. We will continue to expand this strong market position and also significantly increase our market share in neighboring target markets.
As a leading supplier of doors and glass systems, it is important to Arbonia to constantly develop new innovative products in order to offer our customers high-quality, durable and innovative products. Our latest products are equipped with the latest technology and smart features to increase user comfort and safety. We have a wide range of products, from modern glass doors to shower enclosures, from strike plates to system doors and from soundproofing to smart doors to robust fire doors that meet the highest safety standards.
In recent years, Arbonia has invested significantly in the automation of its door plants, thereby laying the foundations for its cost leadership. Arbonia has expanded its geographical footprint to Southwest and Eastern Europe through targeted acquisitions. Our locations therefore have short distances and attractive cost structures and are ideally located geographically.
In addition, Arbonia has also repeatedly invested in vertical integration and thus incorporated certain processes from the value chain, which on the one hand have had a positive impact on margins and on the other hand have also simplified processes. One example of this is the construction of an in-house painting line at RWD Schlatter in Roggwil (CH) or, most recently, the acquisition of GVG in Deggendorf (D), which supplies single-pane safety glass for the Glass Solutions Business Unit.
Both residential construction and renovation have been able to catch up on a large part of their construction activity after the protective measures imposed during the pandemic. But also in the medium to long term, the (Central) European markets offer excellent prospects. On the one hand, there is the strong trend towards urbanisation, which applies to almost all countries and results in such a high demand for housing that new construction cannot keep up with it. Due to the high demand, craftsmen's capacities are so heavily utilised that renovation activity can hardly be increased either. As a result, the building stock in Europe continues to age and renovations have to be made up for as soon as the demand is reasonably met. At the same time, a large part of the building stock must be renovated, at least in terms of energy efficiency, so that the climate targets of the European states can be achieved. In Germany, for example, such a development is not foreseeable even in the medium term, because about 3 years' worth of housing completions (~ 750,000) are waiting for construction to begin.
With the sale of the Windows and Climate divisions, Arbonia's management has completed a lengthy transformation process. Starting with the first investments, through production consolidation and relocation, to the sale of the divisions, a loss-making business unit was transformed into a profit-generating one. Including these investments, a value of more than CHF 350 million was created for the shareholders, including the senior management of Arbonia. In the case of the Board of Directors, 50% of its remuneration is paid in shares and the Group Executive Board in turn receives 50% of its variable remuneration in shares. In both cases, a vesting period of 4 years applies for shareholders.
Currently (as of 31 July 2024), the shareholdings of the Board of Directors, group and senior management (also with a share component in the variable remuneration) amount to around 3.9% of the share capital. With this orientation, Arbonia ensures that the management creates value in the long-term interest of the shareholders.