all the activities of the four business divisions in one annual report +

Transcrição

Latest news: all the activities of the four business
divisions in one Annual Report +++ Celebration:
magnificent topping-out ceremonies at the Joseph
Pschorr Haus Munich and Bikini Berlin +++ Powerful performance: Brau Holding International’s exports reach a record level of 1 million hectoliters +++
Fresh wind: The successful brand Aloft joins the
portfolio of hotels in Germany +++ Boom: The demand for salmon increases worldwide +++ Mastered
with bravura: the challenges faced in 2012 – thanks
to the commitment and dedication of our employees
construction & real estate
beverages
hotels
seafood
Annual Report | Overview
Key Figures 2012
Schörghuber Stiftung & Co. Holding KG – Group
Balance sheet total in TEUR
Sales revenue in TEUR, of which
Construction & Real Estate division
SHKG
Group
BHI KGaA
Subgroup
SHKG
Group
BHI KGaA
Subgroup
2012
2012
2011
2011
3,147,419
3,039,847
672,716
467,766
388,782
Beverages division
Hotels division
Seafood division
Operating income (EBIT) in TEUR
Well-positioned for a successful future
263,127
601,466
588,402
215,779
216,645
81,136
39,483
131,329
33,732
174,974
28,567
58,853
20,631
104,340
13,387
EBITDA in TEUR
124,101
77,712
91,655
78,400
Equity ratio in %
41.6
38.4
41.4
36.6
Net profit after taxes in TEUR
Number of employees, of which
4,082
4,091
695
654
Beverages division
2,327
Schörghuber
Corporate Group
The Schörghuber Corporate Group was founded in 1954 as a property development company in Munich. Over a period
of almost six decades, it has become a privately-owned company that operates with great success, in both a national and
international context, in four areas of business: construction and real estate, beverages, hotels, and seafood, providing
employment to approximately 6,500 people.
The Schörghuber Corporate Group comprises a strong network of reputable companies. Bayerische Hausbau, which
bundles the group’s diverse real estate, property development and prefabricated housing activities, is one of the largest
full-service real estate companies in Germany. With a real estate portfolio valued at approximately 2.1 billion euros, it
holds a top position in the German real estate market. The group’s beverage shareholdings are bundled in Brau Holding
International, a joint venture with Heineken. With the Paulaner Brewery Group, the Kulmbacher Group and the
Südwest Group housed under its roof, the enterprise is one of Germany’s leading brewery groups, offering a wide range
of different brands and traditional specialty beers. Arabella Hospitality provides asset management services to the 22
hotels in Germany, Austria, Switzerland and on the Balearic island of Mallorca that the group either owns or leases.
The hotels are managed under the renowned brand names St. Regis, The Luxury Collection, Westin, Sheraton and Four
Points by Sheraton. The salmon farming and processing activities in Chile bundled under the roof of Productos del
Mar Ventisqueros neatly round off the group’s portfolio of business activities as the fourth business division, Seafood.
2,401
Hotels division
1,865
1,995
Seafood division
1,397
1,326
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Annual Report | Contents
Contents
Corporate Information
Financial Information
Management BodiesExecutive Board and Foundation Board4 Group Management Report Overview of the company and the group
28 – 29
4 – 5Foreword of the Executive Board5
28 – 41Summary of the business year 29 – 38
Earnings, assets and financial position
38 – 39
Events after the balance-sheet date
Business DivisionsConstruction & Real Estate
6 – 13
6 – 25Beverages
14 – 21
Hotels
22 – 23
Seafood
24 – 25
Beverages Special
Financial instruments and risk management
39 – 41
Forecast
41
Consolidated FinancialIncome statement
42
StatementStatement of recognized income and expenses
43
42 – 47Balance sheet
44
Cash-flow statement
45
Development of equity
46 – 47
Notes to the Consolidated
General information
48 – 63
Financial Statement
Notes to individual items
64 – 90
48 – 100Other disclosures
Auditors’ report
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39
90 – 99
100
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Management Bodies | Executive Board and Foundation Board
Foreword of the Executive Board
Executive Board
Dr. jur. Klaus N. Naeve
Alexandra Schörghuber
Chairman of the Executive Board
Member of the Executive Board
Dr. Jürgen Büllesbach
Alternate Member of the Executive Board (Start of term: 20 September 2012)
Christoph Michl
Roland Tobias
Foreword
Foundation Board
Dear Readers,
The foundation board of Schörghuber Stiftung & Co. Holding KG is a supervisory body for the family business, and
its rights and obligations are comparable with those of the supervisory board of a joint stock corporation.
What was last year a novelty has this year become a publication with a brief yet honorable tradition: The Schörghuber
Corporate Group is publishing what is now its second annual report. In this report, our corporate group looks back on
an eventful and successful 2012.
Bayerische Hausbau marked a number of important milestones in its major projects. All 374 apartments in our WelfenHöfe project were handed over to their new owners. Topping-out ceremonies were held at both the Joseph Pschorr Haus
in Munich and at Bikini Berlin. And in Stuttgart, Bayerische Hausbau laid the foundation stone for the Milaneo together
with its project partners. In the Construction & Real Estate division, a total of 497,000 square meters of residential space,
and thus approximately 4,600 residential units, as well as 251,600 square meters of commercial space are currently under
construction or being planned.
Thanks in part to the innovative drive of our brewers – products worthy of particular mention in 2012 include Paulaner
Weißbier Zitrone Alkoholfrei, Mönchshof Natur Radler, Kapuziner Kellerweizen and Sternquell Bierbrause – Brau
Holding International was able to achieve a slight increase in domestic sales despite a steadily declining market. This
encouraging development in the current market environment was accompanied by a new export record: Brau Holding
International’s export volume exceeded the one-million-hectoliter mark for the first time.
Last year, the Hotels division also profited from Bayerische Hausbau’s positive development. Together with Starwood,
Arabella Hospitality is launching the growth brand Aloft in Germany at two properties being built by Bayerische Hausbau –
one located near Munich’s main train station and one that is part of the Milaneo urban development in Stuttgart. The two hotels are slated to open in 2015 and are the perfect additions to our group’s portfolio of attractive hotels in superb locations.
At Productos del Mar Ventisqueros, the temporary oversupply of farmed salmon and the resulting fall in prices on the
world market had a negative impact on the company’s balance sheet. Undeterred, we continued to work on professionalizing processes, structures and facilities in Chile and, with completion of the construction of the land-based freshwater
farm Chaqueihua II in particular, made an important investment in the long-term success of our Seafood division.
Georg Fahrenschon
Chairwoman of the Foundation Board
(Start of term: 20 September 2012)
Former Bavarian Minister of Finance (retired)
President of the Deutscher Sparkassen- und Giroverband e.V.
Dr. Jobst Kayser-Eichberg
Deputy Chairman of the Foundation Board
Managing Partner / Chairman of the Supervisory Board
Sedlmayr Grund und Immobilien KGaA
Albert Niggli
Chairman of the Board of Directors of Arabella Schweiz AG
Dr. Ingo Riedel
(Start of term: 21 May 2012)
Chairman of the Management Board
Riedel Holding GmbH & Co. KG
Robert Salzl Former CEO of Arabella Hospitality Group GmbH & Co. KG
Former CEO of Bavaria International Aircraft Leasing GmbH & Co. KG
Former chief pilot for Deutsche Lufthansa AG
We hope you enjoy your read.
Best regards,
Dr. Klaus N. Naeve
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Business Division | Construction & Real Estate
Bayerische Hausbau is one of the largest full-service real estate
companies in Germany and bundles the Schörghuber Corporate
Group’s construction and real estate activities under its roof. With a
portfolio valued at approximately 2.1 billion euros, it holds a leading
position in its core market, Munich, in particular. The range of services it offers covers the business segments project development
and real estate. Its subsidiary Hanse Haus, a manufacturer of prefabricated homes, neatly rounds off the company’s business activities.
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Unternehmensbereich | Bauen & Immobilien
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1 | Spectacular major project: Bikini Berlin
2 | New living space for families: the residential complex Parkside Lokstedt in Hamburg
3 | Highly-coveted location: living in the Am Luitpoldpark complex in Munich-Schwabing
4 | Park setting in Berlin-Weißensee: the Schön wohnen am Kreuzpfuhl residential complex
Life qualities
4,600 residential units in major German cities
Bayerische Hausbau has a long tradition of developing projects both in the residential sector and in the commercial
sector. To meet the soaring demand for residential space in major cities like Munich, Berlin and Hamburg, a higher
proportion of residential projects for the coming years are currently in the development phase. However, Bayerische
Hausbau’s long-term objective remains a balance between residential and commercial space. It is currently developing
in the region of 497,000 square meters of residential space throughout Germany, which corresponds to about 4,600
residential units. Depending on the respective planning status, these units are currently in the planning permission,
project planning or construction phase. In Hamburg, for example, Bayerische Hausbau celebrated a topping-out ceremony for the 141-unit residential project Parkside Lokstedt in May. In Berlin-Weißensee, the topping-out ceremony for
the Schön wohnen am Kreuzpfuhl residential complex, with 97 units, was held in December. Last year in the commercial sector, new projects involving the development of approximately 251,600 square meters of space were underway.
In addition to the metropolises Berlin, Hamburg and Stuttgart, Bayerische Hausbau is also making major investments
in its core market, Munich. In 2012, residential projects in the capital of Bavaria accounted for approximately 384,000
square meters of space or about 3,600 residential units. Since the majority of these projects are still in the early phases
of obtaining planning permission or in the process of being planned, Bayerische Hausbau’s order books for the coming
years are already well filled. In 2013, sales activities for the projects Hölty – Wohnen in Sendling and Das Togal-Werk
in Munich-Altbogenhausen, among others, will be launched. The two residential projects in Munich-Schwabing, namely Am Luitpoldpark, with 86 residential units, and FürstenBerg Schwabing, with 55 units, are much further along, with
construction scheduled for completion in 2013.
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7
Innovative and
needs-oriented
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1 | Celebrated: the topping-out ceremony for the major Bikini Berlin project
2 | Crowned: the Joseph Pschorr Haus in Munich also received a topping-out wreath
3 | Planned: a new residential complex will replace the industrial buildings at the Nockherberg
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Focus on retailing
The year 2012 saw great progress made in Bayerische Hausbau’s two most important retail projects: Bikini Berlin and
the Joseph Pschorr Haus in Munich. In September, in keeping with the flair of the respective city, Bayerische Hausbau
celebrated spectacular topping-out ceremonies for both projects together with construction workers, tenants, partners
and politicians.
With Bikini Berlin, Bayerische Hausbau is breathing new life into City West. Situated opposite the Memorial Church, the
company has been in the process of revitalizing Bikini Berlin, a listed building complex from the 1950s, comprising the
Zoo Palast cinema, a small and big high-rise building, a public parking garage as well as the centerpiece, the Bikinihaus
with its spectacular 7,000-square-meter rooftop terrace, since 2010. One year prior to the planned opening, the shell construction had been completed and approximately 60 percent of Bikini Berlin had been leased. The key tenants include the
boutique hotel 25hours, the Berlin fashion retailer Andreas Murkudis and cinema expert Hans-Joachim Flebbe.
The Joseph Pschorr Haus in Munich’s pedestrian zone was hailed as a new star on the city’s real estate horizon. It was
built using a sophisticated top-down construction method, which allows for concurrent above and below-grade construction, to ensure that the tight schedule can be met. It is planned that the Joseph Pschorr Haus open its doors in the
autumn of 2013. Modern business premises designed by the firm of architects Kuehn Malvezzi are today being created
on a property steeped in history – the “Brauerei zum Pschorr” brewery was founded here in 1820. Translucent facades
and a landscaped atrium characterize this striking new building in a prime city center location. In the future, three
high-profile tenants will be operating flagship stores on the roughly 19,100 square meters of retail space. In addition
to the sports clothing and equipment retailer SportScheck, the American fashion chain Forever 21 will be leasing
around 6,800 square meters, and the fashion retailer MANGO will be opening the biggest MANGO store worldwide on
approximately 2,300 square meters of space.
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Civic engagement as a corporate responsibility
Engaging the public is becoming increasingly important for project developers. In this context, Bayerische Hausbau is
on the one hand pursuing the aim of achieving the full and early involvement of the public to gain acceptance for the
project in question. On the other, it is intended that the high quality of the architectural design be maintained, without
allowing it to be diluted by individual interests. A current example is the development project at the Nockherberg in
Munich’s Au district. Bayerische Hausbau is planning a new urban development, complete with shopping facilities and
approximately 1,200 to 1,400 new, urgently needed apartments, on the approximately nine-hectare site of the Paulaner
brewery, which will be moving its production facilities to the western outskirts of Munich. The residential units will
offer a balanced mix of different price classes, from privately financed to publicly funded apartments. Unlike the brewery, due to which the district is currently sealed, the new urban development, with new foot paths and extensive green
and open spaces, will open up and connect the upper and lower Au districts. This will be a major improvement for this
popular part of Munich. The locals’ acceptance of the impending changes to their immediate surroundings is therefore
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1
1 | Modern and vibrant: the Milaneo concept in Stuttgart
2 | Harmonious fusion: offices and apartments in Düsseldorf’s Quartier D³
3 | Elegant and sustainable: the model office in the WelfenHöfe, Munich
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3
Diversity and
freedom
It’s the mix that matters
all the more important. Bayerische Hausbau has been providing information about preliminary planning on a project
website launched at the beginning of 2012 – thus approximately five years prior to the start of construction. In October,
before the launch of the urban development competition, it conducted a public podium discussion, during which the
denizens of the Au district were able to discuss their concerns with Munich’s head of the municipal planning office,
Prof. Dr. (I) Elisabeth Merk, the CEO of Bayerische Hausbau, Dr. Jürgen Büllesbach, and two specialist judges. The
suggestions were included in the documents for the competition. With this first, successful step involving civil engagement and subsequent approval of the development plan, Bayerische Hausbau has reached a major milestone in the
planning process.
Bayerische Hausbau is also relying on the active participation of residents when it comes to the planned Hochäcker
straße urban development in Munich. It is expected that a building permit for about 1,000 new apartments on an
approximately 19-hectare site in the southeastern part of the Bavarian capital will be issued by the end of 2013. In the
run-up to mandatory civic engagement, Bayerische Hausbau has already conducted a citizens’ workshop with the result
that essential requests for changes by citizens were given due consideration during further planning.
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Because open space in Germany’s major cities is becoming an increasingly precious asset, property developers need
to respond to this development with innovative concepts. The idea of a mixed-use urban development offers room for
new possibilities. One example is the Milaneo in Stuttgart where Bayerische Hausbau is building 415 rental apartments
on top of a newly created shopping center. Landscaped inner courtyards will make it possible to enjoy a tranquil living
environment, shielded from the retail world. Office space and an Aloft-brand hotel will also be erected above the shopping center, for whose construction ECE and STRABAG are responsible. The laying of the foundation stone took place
in October but construction work above the shopping center will not start until the autumn of 2013.
In many cases, a hotel is the perfect addition to a vibrant and versatile urban development: not only in the Milaneo but
also, for example, in Düsseldorf’s office and residential development D³ and in Bikini Berlin. Here again, Bayerische
Hausbau profits from its many years of expertise in the construction of hotels. Because, however, it is apartments that
are most needed, the company focuses on residential construction in its urban development projects. In the WelfenHöfe
in Munich’s Au-Haidhausen district, which offers a total of 480 residential units, Bayerische Hausbau had sold most of
the apartments long before construction was completed. By the end of 2012, the urban development, which is known
first and foremost for its award-winning architectural diversity, had been brought to completion and the majority of
the tenants had moved in. The WelfenHöfe is synonymous with modern living. A large and concentrated number of
urban apartments has been created here. The landscaped courtyards, which are open to the public, nevertheless provide
sufficient open space and tranquility for the residents.
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1
2
Efficiency as the
basis for success
3
4
1 | Comprehensive renovation: Munich’s gourmet restaurant Bogenhauser Hof
2 | Beautifully refurbished: the listed Bräuhaus am Kapuzinerplatz in Munich
3 | Extremely well-received: Hanse Haus prefabricated homes
4 | Contemporary architecture: Hanse Haus homes are synonymous with quality and design
The collective strength of a group
Occasionally, and only when economies of scale are apparent, Bayerische Hausbau and the other business divisions in
the Schörghuber Corporate Group take advantage of the fact that they are part of a corporation. Such opportunities
presented themselves last year in the Beverages division in particular. As an experienced property developer, Baye
rische Hausbau is responsible for building the Paulaner brewery’s new production facilities in Munich-Langwied. In
close cooperation with the brewery, it began planning the new buildings on the approximately 15-hectare site at the
start of 2012; construction will begin in 2014. The business interests of the Real Estate and Beverages divisions also
complemented each other in joint projects in the gastronomy sector. In 2011, Bayerische Hausbau, together with the
Hacker-Pschorr and Paulaner breweries, made it their aim to modernize selected traditional establishments in Munich
that are part of its real estate portfolio. This includes, for example, the now completed renovation of the gourmet restaurant Bogenhauser Hof – a Munich institution – as well as the careful refurbishing of a historic building on Munich’s
Kapuzinerplatz in the city’s Isarvorstadt district, including the Paulaner Bräuhaus restaurant in the building, which is
slated to open in the summer of 2013.
Last year there were also opportunities to make good economic use of the collective within the corporate group in the
Hotels division: Bayerische Hausbau is realizing a new building project in the direct vicinity of Munich’s main train
station that will provide the ideal venue for a hotel due to its prime location. Although the company acts independently of Arabella Hospitality when it comes to selecting its hotel operators, both companies agreed that the hotel
would in the future be managed under Starwood’s Aloft brand.
The strong sense of solidarity – not just within the Schörghuber Corporate Group but also, first and foremost, between
Bayerische Hausbau and its subsidiaries – is shaped in particular by the employees. Up-and-coming young professionals at Bayerische Hausbau and Bayerische Hausbau Immobilien Management have been working together in the junior
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management program “Die Jungen Wilden” since 2010. At the end of 2012, the umbrella organization of German property managers (Dachverband Deutscher Immobilienverwalter) named Bayerische Hausbau Immobilien Management,
which has been active in the property and condominium management sectors since 1982, Property Manager of the Year.
Repeat record revenues and top marks for Hanse Haus
Hanse Haus, a subsidiary of Bayerische Hausbau, once again reported record revenues. In the 2012 business year, the
manufacturer of prefabricated homes generated revenues of approximately 77 million euros with the construction of
314 homes and was thus able to once again significantly improve on its previous year’s earnings of 67 million euros –
up until then, the best year since introduction of the euro. Hanse Haus, which has its headquarters in Oberleichtersbach
in Lower Franconia, is one of Germany’s leading providers of prefabricated homes and is also represented internationally. In addition to its core market Germany, the company maintains its own sales network in Switzerland, Great Britain,
Austria, Luxembourg and Italy. Apart from the high-quality craftsmanship of its prefabricated houses, Hanse Haus
also owes its economic success to an extraordinarily high level of customer satisfaction. This was also confirmed by a
survey conducted by FOCUS MONEY. In November 2012, the business magazine published a representative study on
“How fair are German suppliers of prefabricated houses to their customers?” Altogether, customers of the 16 largest
manufacturers of prefabricated homes were asked about product performance, customer advice, price-performance
ratio, customer communication, customer service and sustainability/responsibility. Hanse Haus received top marks in
all the categories and came out on top in the overall ranking, firmly establishing itself with this above average result
as an especially fair company.
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Business Division | Beverages
Brau Holding International is a joint venture between the Schörg
huber Corporate Group (50.1 percent) and Heineken (49.9 percent).
With 12 breweries in Southern Germany, the group is synonymous
with a diverse beer culture, a long brewing tradition and beers of
the highest quality. The group comprises the Paulaner Brewery
Group, 63 percent of the Kulmbacher Group and the Südwest Group.
1 | Innovation: Paulaner launches the first wheat-beer mixer onto the market
2 | Refreshing: the new Mönchshof Natur Radler with natural lemon juice
3 | Strong: Fürstenberg’s alcohol-free Radler achieved a gain of 30 percent
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Trajectory of success
Brau Holding International saw the positive performance of the previous year continue in 2012. The brewery group was
able to boost revenues in the 2012 business year by 1 percent, compared with the previous year, to 585 million euros.
Brau Holding International thus increased its market share in terms of revenue in Germany and in its core market,
Southern Germany. The reasons behind this upward trend were an increase in sales, on the one hand, and successfully
implemented price increases for individual brands, on the other. With 5.4 million hectoliters, beer sales for the breweries belonging to Brau Holding International were 2 percent higher than in the previous year. Beverage sales including
mineral water and non-alcoholic beverages increased by 1.7 percent to 6.2 million hectoliters. Domestic beer sales
came to 4.4 million hectoliters, a gain of 0.4 percent compared with the previous year. The volume of beer sold abroad
was up almost ten percent compared with 2011. This means that Brau Holding International’s foreign sales passed the
one-million-hectoliter mark for the first time.
Growth through innovation
The innovations introduced in 2012 by the breweries belonging to the group played a significant role in the growth
that Brau Holding International enjoyed on the home market. Paulaner launched the first beer mixer made with
alcohol-free wheat beer, Paulaner Weißbier Zitrone Alkoholfrei, onto the market. The mix of Paulaner’s tried-andtested alcohol-free wheat beer and naturally-flavored lemon soda, positioned as a genuine thirst quencher for those
brief breaks from everyday life, was readily accepted by the market and provided further impetus for the already
rapidly growing alcohol-free wheat beer segment. The second major market launch of the year was Mönchshof Natur
Radler. The beer-based mixed beverage, made with natural lemon juice and no artificial sweeteners or preservatives,
also turned in a strong performance from the outset. That the new products were well-received on the market was
confirmed by the trade press. In a trade survey conducted by the trade journal Getränke Zeitung, Mönchshof Natur
Radler and Paulaner Weißbier Zitrone Alkoholfrei took the first two places in the category Beer/Beer Mixer as Innovations of the Year.
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1
2
1 | Premiere: Hacker-Pschorr launches its first alcohol-free lager onto the market
2 | Investment in the future: Auerbräu’s new pressure tank cellar
3 | Optimization: the variety of packaging units requires new logistics solutions
3
An eye to the future
Best-selling alcohol-free beer
An increasing number of consumers are turning to alcohol-free beers. Brau Holding International, too, is focusing on
this segment. In 2012, growth driver number one in the domestic market was once again Paulaner Hefe-Weißbier
Alkoholfrei, which increased its market share significantly. Kapuziner Weißbier Alkoholfrei, positioned as a lowcalorie thirst quencher, also performed very well. To best exploit growth opportunities in the alcohol-free segment, the
breweries belonging to Brau Holding International have expanded their range of products in this sector. Hacker-Pschorr
launched its first alcohol-free beer, Münchner Alkoholfrei Naturtrübes Helles, onto the market at the end of the year.
It was well received by customers from the start, as was the Fürstenberg brewery’s alcohol-free Radler, which, with its
new brand identity, achieved growth of approximately 30 percent in its core market.
Investments in the breweries
As home to the regional art of brewing, Brau Holding International invested over 36 million euros over the course of
the last business year in the renovation and expansion of its breweries. Numerous smaller investments in the breweries
were needed to ensure brewing quality, efficiency and delivery capacity in the future. The major projects included the
installation of a new young-beer centrifuge and an investment in production facilities for beer-based mixed beverages
in Kulmbach, the restructuring of filtration at Würzburger Hofbräu and the new combined heat and power (CHP) unit
at the Fürstenberg brewery. The latter is used to generate power from residual heat at the brewery, which can then be
used in its own facilities. Any excess is fed into the public power grid thus making optimum use of the thermal energy
from the brewhouse while at the same time generating this energy in the most environmentally friendly way possible.
The largest investment project for the future will be the planned transfer of the Paulaner brewery’s production and
logistics facilities to Munich-Langwied. The procedure for amending the existing development plan was officially
launched with the city council resolution passed on 26 September 2012. It is very important to Paulaner that it provide
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its new neighbors with information about the construction project during the planning procedure. In addition to information events held in cooperation with the district councils, a project website was also set up for this purpose. Local
residents and interested parties can enter into a direct dialog with the brewery and obtain information about the latest
project developments at www.brauerei-langwied.de. Initial preparations have been under way at the site since the beginning of 2013; construction of the brewery is slated to begin one year later.
Optimizing the value-added chain
While fewer and fewer customers are purchasing their beer in traditional packaging units like the 20-bottle crate,
smaller units such as six packs are becoming increasingly popular. The variety of packaging units is growing and so
are the demands being made in the areas bottling, logistics and the handling of empties. The rising sales in inter
national markets are also increasing the level of complexity in these areas since the various countries often require
different packaging units, labels and packaging.
To ensure that it is better able to respond to these increasingly complex requirements, Brau Holding International has
started placing increased focus on what is referred to as “supply chain management” – in other words, optimizing
the processes along the entire length of the value-added chain. This includes not only closer coordination between
purchasing, production, bottling and logistics but also improving company-wide sales and production planning to
ensure regular delivery capability and a high level of customer satisfaction as well as boost the efficiency of the
breweries. It was for this reason that the new Supply Chain division, which comprises the Purchasing, Production,
Bottling and Logistics departments, was created at Paulaner in November 2012. The new division is managed by
Dr. Stefan Lustig, who has taken over this position in addition to his responsibilities as chief operating officer at Brau
Holding International.
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1
2
3
1 | Environmentally friendly: sustainable bottling at the Kulmbacher brewery
2 | Creative collaboration: Hoepfner and the Sixpoint Craft Ale Brewery Brooklyn
3 | The art of brewing: the ingredients must satisfy strict quality requirements
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Passion for the art
of brewing
Award-winning, resource-efficient brewing
Commitment to beer culture
Efficient brewing and delivery is an important prerequisite for the business success of the brewery group. Efficiency is,
however, not only good for the balance sheet but also for the environment. For years, the breweries housed under the roof
of Brau Holding International have been committed to beer production that is as resource efficient as possible. Almost all
the breweries work with an environment management system in accordance with the universally recognized environmental standard ISO 14001 or the EMAS (Eco-Management and Audit Scheme) standard. These management systems ensure
that the breweries make an ongoing effort to improve their environmental performance, document their resource consumption and handling of waste material, as well as name concrete improvement objectives and have these reviewed.
In 2012, resource consumption at the breweries in the group improved significantly compared with the previous year
thanks to numerous initiatives and technical investments. A total of 7 percent less electricity, 3.8 percent less heat and
3.6 percent less water were needed per hectoliter produced compared to 2011. The amount saved is enough to meet the
electricity, heating and water needs of a four-person household for between 350 and 450 years.
This particular commitment to the environment within Brau Holding International also received official recognition in
2012. The Kulmbacher brewery was honored for its many years of participation in the regional Bavarian Environmental
Pact in Upper Franconia at a ceremony held by the Bavarian State Government. Würzburger Hofbräu received an
award from the Federal Ministry of the Environment for its environment-oriented commitment and the optimization of
its energy efficiency on the occasion of the second Energy Efficiency Info Day held by the non-profit organization
Förderkreis Umweltschutz in Unterfranken e.V.
Beer is more than just a product, beer is a passion. It is therefore of great importance to the breweries in the group, with
their regional specialty beers, to promote beer as a diverse cultural heritage. An important initiative in this context was
the training of beer ambassadors at Paulaner and beer sommeliers at Fürstenberg and Kulmbacher. Thanks to intensive
training in the brewing process, beer tasting and cooking with beer, sales staff were trained as experts for all matters
pertaining to the enjoyment of beer. They provide assistance to bars and restaurants when it comes to storing and tapping beer properly, selecting the beer best suited to a particular dish or creating new beer menus, for example – much
in the same way as the well-known wine sommeliers at upscale restaurants.
The Beer Culture Day held at the Fürstenberg brewery also focused on cultivating an enthusiasm for beer. By experiencing the feel of the raw materials, learning about traditional brewing methods, taking a tour of the brewery and
other activities, visitors were given an understanding about the art and culture of beer brewing in a number of different
ways. The event was one of the highlights of Baden-Württemberg’s Hometown Days in Donaueschingen, which the
Fürstenberg brewery supported in 2012 as a premium sponsor. Two other initiatives also demonstrated just how diverse
the art of brewing can be: In 2012, Paulaner opened a brewery in a building known as the “Eiswerk”. At this microbrewery, master Paulaner brewers create special varieties of beer for beer aficionados using traditional brewing
craftsmanship. Last year, Hoepfner entered into a cooperation with craft brewer Jan Matysiak, master brewer at the
Sixpoint Craft Ale Brewery in Brooklyn, in order to create an exclusive variety of beer: Hoepfner Zartbitter. The
special creation was served at selected bars and restaurants operated by the brewery with great success.
19
1
2
1 | Remodeling: the venerable Donisl restaurant will become Hacker-Pschorr’s new flagship
2 | Historic ambiance: Bayreuth’s Eule restaurant, popular with artists, shines with new luster
3 | Showpiece: the new Keiler-Brauhaus in Lohr am Main opened its doors
3
Living tradition
Promoting the gastronomy sector
The gastronomy sector remains an important mainstay for the breweries – not only as a sales channel but also as a calling
card for the respective beer brand. The group is therefore committed to preserving historic restaurants and creating attractive
new gastronomy properties. A particularly good example for the preservation of traditional “tavern” culture is located directly on Marienplatz in Munich: Completely destroyed in World War II and rebuilt in 1954, the property located at Weinstraße
1 and home to the popular Donisl restaurant is in urgent need of renovation. At the beginning of 2012, Bayerische Hausbau
as the property’s owner, together with the Hacker-Pschorr brewery as the main leaseholder, decided to continue to operate
the Donisl as a traditional restaurant. After the contract with the previous leaseholder expired at the end of 2012, reconstruction of the building was launched at the beginning of 2013. Only the facade, which is well worth saving, will be preserved.
Following the remodeling, it is intended that the Donisl become a flagship restaurant for the Hacker-Pschorr brewery.
Numerous other restaurants belonging to the breweries, which were either newly opened or reopened in 2012, contribute
to vibrant diversity in Germany’s gastronomy sector. This includes the Brigantinus in Constance. The object, comprising
a Paulaner beer garden with seating for 800, a covered terrace with a view of the lake, a restaurant and an event venue, is
a new flagship at Lake Constance for the Fürstenberg and Paulaner brands, which are the only brands served there. Other
20
examples are the Eule bar and restaurant with Mönchshof in Bayreuth, a favorite hangout for past and present artists,
which as of last year is a showcase for Mönchshof specialty beers, as well as Paulaner Wirtshaus am See in Kahl. The
Keiler-Brauhaus also celebrated its opening in 2012. The glass facade of the new brewery-cum-restaurant in Lohr am
Main is a striking architectural feature and provides a direct view of the copper kettles before even entering the building.
Brewhouses on course to success
Bavaria’s gastronomic culture also celebrated great successes abroad with what is now the 22nd Paulaner brewhouse
being opened in Asia. Paulaner specialty beers are now being brewed and sold at 23 Paulaner brewhouses and restaurants worldwide. The opening of the first Paulaner brewhouse on the North American continent is planned for the
first half of 2013 in New York City. The objective for 2013 is to increase the number of brewhouses to approximately
40. This allows the gastronomy sector to become an even more important stage for presenting brands and promoting
Bavarian beer culture around the world.
21
1
Business Division | Hotels
1 | Premier in Germany: Aloft Stuttgart in the new Milaneo urban development
2 | New, chic, inviting: Motions restaurant in the Westin Grand Frankfurt
3 | Pure pleasure on Mallorca: St. Regis Mardavall
2
New stars
As the central holding company for the Hotels division, Arabella
Hospitality performs asset management for the 22 hotels in Germany,
Austria, Switzerland and on the Balearic island of Mallorca owned
or leased by the group. The hotels are operated under the renowned
brand names St. Regis, The Luxury Collection, Westin, Sheraton
and Four Points by Sheraton.
Aloft: Brand debut in Germany
Following the strategic repositioning of the Hotels division in 2011, Arabella Hospitality is expanding its portfolio
with two new hotel projects in Munich and Stuttgart. Together with its long-standing partner Starwood Hotels &
Resorts, it signed contracts in 2012 for the two hotels, which will be opened under the Aloft brand in 2015. Since
2011, Arabella Hospitality has been focusing on the maintenance, operation and expansion of the group’s own hotel
properties, while Starwood Hotels & Resorts assumes responsibility for the day-to-day management of 18 of the 22
hotels in the group.
The Aloft Munich will be part of an attractive mixed-use concept in Munich city center. Its location in the immediate
vicinity of the main train station means that all of the city’s tourist attractions as well as the Franz-Josef-Strauß
International Airport will be easy to reach. The architecture of the area around the main train station has improved
significantly over the past few years. The new hotel, with its 184 rooms, will help satisfy the high demand for affordable yet design-oriented overnight accommodation in Munich’s city center.
22
3
The Aloft Stuttgart, in the city’s future Europaviertel district, is part of the new Milaneo residential and commercial
development. The 165 hotel rooms will be characterized by a bright and airy ambiance with super-sized windows,
inviting beds and floor-level rain showers. The foundation stone for the new urban development, including the hotel,
was laid in September 2012.
The Aloft brand has positioned itself in the lower mid-price segment of the hotel market with urban design, state-ofthe-art technology and a trendy ambiance at moderate prices. Both hotels will be developed by Bayerische Hausbau,
the Schörghuber Corporate Group’s property development arm, maintained by Arabella Hospitality and run under the
day-to-day management of Starwood Hotels and Resorts. The opening, which is planned for 2015, will mark the Aloft
brand’s debut in Germany. Following the opening of the first Aloft boutique hotel in 2008, the brand has grown rapidly
to over 60 hotels worldwide.
Motions: the new culinary meeting point in the Westin Grand Frankfurt
Investments in the building structure and brand refinement of selected hotels continued in 2012. In addition to the
usual modernization measures made to the hotels in the company’s portfolio, Arabella Hospitality invested 1.3 million
euros in renovating the Motions restaurant at the Westin Grand Frankfurt alone. Seating in the breakfast and brunch
restaurant Motions, located on the first floor of the business hotel, was expanded from 148 to 173, and the restaurant
now offers a large buffet landscape extending over a total length of 26 meters with an open show kitchen and a variety
of cooking stations. The interior of the restaurant reflects the Westin design concept and offers guests a warm and inviting ambiance. Thanks to a flexible lighting system, the arrangement of the tables in the restaurant can be varied as
needed.
Luxury hotel with award-winning cuisine: St. Regis Mardavall
The St. Regis Mardavall on Mallorca celebrated its 10th anniversary in 2012. This occasion was celebrated in July with
a large gala event attended by 140 invited guests. The leading luxury hotel on the Balearic Islands not only impresses
with its architectural elegance, superior quality and first-class service – it remains the only resort in Europe to fly the
flag of the prestigious St. Regis hotel brand. The high level of quality of the hotel and its cuisine was also reflected
by the accolade bestowed on the gourmet restaurant Es Fum, which once again earned a Michelin star. Es Fum, which
is headed by chef de cuisine Thomas Kahl, was awarded a star by the Spanish Michelin Guide for the very first time
in 2011.
23
1
2
3
Business Division | Seafood
4
1 | On the upswing: Chilean salmon offers great growth potential
2 | Ecologically valuable: sustainable salmon aquaculture conserves resources
3 | From Patagonia to all four corners of the earth: Ventisqueros plans further expansion
4 | The greatest of care: strict controls ensure a high level of quality
Profitable and
sustainable growth
With a history that spans more than 20 years, Productos del Mar
Ventisqueros S. A., the operative management company for the
Seafood division, is one of the pioneers of salmon farming in Chile.
The company, which has its headquarters in Puerto Montt, operates four freshwater and 15 saltwater facilities, as well as two
processing plants, in the Los Lagos region. Ventisqueros provides
employment to approximately 1,600 people.
Ventisqueros offers a wide variety of products: In addition to Salar (Atlantic salmon), the most widely farmed species
worldwide, it also produces Coho (Pacific salmon) and rainbow trout (salmon trout). The principal customer for the
latter two species is Japan. This makes Japan, together with the USA, the main sales markets for the Chilean salmon
industry. There was once again a marked increase in demand in 2012. In addition to the USA, this demand comes primarily from the emerging nations Brazil, Russia and China, with the USA and Brazil holding a special position since
both countries buy fresh salmon on a large scale. On the whole, it is expected that there will be a sustained increase in
the consumption of salmon and salmon products. With this in mind, Ventisqueros is planning on steadily increasing its
annual production. This is part of the company’s business strategy, which is geared to sustainable growth.
In 2012, an oversupply caused the price of salmon to fall worldwide to a ten-year low. In some cases, sales prices were
up to 50 percent lower than those of the previous year. This was the result of a temporary oversupply on the market.
Following the so-called ISA crisis in the Chilean salmon industry in 2008/2009, during which the Norwegian industry
significantly expanded its capacities, the Chilean salmon industry regained its earlier production volumes in 2012.
24
This meant that, in economic terms, 2012 was a year of losses for the entire Chilean salmon industry – despite an
increase in export and sales volumes. Ventisqueros is responding to this situation by slowing down the rate of
growth originally planned. At the same time, the market offers good opportunities for carrying out the needed increase in production capacities. Furthermore, Ventisqueros will adapt its range of products in the medium-term in
favor of Salar. By changing its focus, Ventisqueros is not only responding to increasing demand for this species
worldwide but – unlike Pacific salmon and rainbow trout – also making it possible to harvest salmon year-round
while at the same time achieving a more balanced utilization of its production capacities. This puts the company in
a position to supply customers – above all in the USA and in the increasingly important South and Central American
markets – with fresh salmon in a flexible and sustainable manner. Another component of this strategy for profitable
growth is increasing the value added by expanding the range of products it offers to include refined fish products.
In addition to the advantage this offers in the form of higher profit margins, this segment is less price sensitive than
that for standardized salmon products.
Investments in the future
A prerequisite for achieving the business growth targets is expanding farming and production capacities. In 2012, for
example, the freshwater farm Chaqueihua II was put into operation. Furthermore, Ventisqueros plans on expanding the
freshwater facility in Pichicolo. Consideration is also being given to expanding processing capacities. All investments
will involve paying particular attention to ensuring that resources are used carefully.
Increasing importance of growth markets
Experts assume that prices will quickly recover over the course of 2013 as a result of increasing demand in the face of
stagnating supply. It is also expected that salmon, in view of rising feed prices for all animals bred specifically for
food, will in the future become more competitive compared with cattle, pigs and poultry due to the fact that they are
more efficient converters of feed. This will provide a further boost in the demand for farmed salmon. Especially in
countries in, for example, South and Central America, where up until now preference was given to the cheaper alter
native, namely meat. In addition to China and Russia, these markets harbor enormous growth potential for Chile’s
salmon farming industry. The Chilean salmon farmers association, SalmonChile, therefore launched a country-specific
campaign in Brazil, the largest country on the South American continent – a campaign in which Ventisqueros is also
playing an active role.
25
SPECIAL I 2012
Beverages Special
WORLDWIDE
SALES OPPORTUNITIES
FOR SOUTHERN GERMAN BEER
Brands, Markets,
People
26
Opportunities
and
Strategy
Trends
and
Traditions
Fascination
and
Diversity
BHI and the
international
beer business
A close look at
old and new beer
markets
What makes
Bavarian beer
so popular
Special I 2012
CONTENTS
Editorial
Dear Readers,
Interview
BHI‘s chief executive officer, Roland Tobias,
takes about the future of the company‘s
foreign business ................................................................... 4 – 7
Status Quo
Foreign growth tops domestic growth ............................. 8 – 9
Strategy
Success through market niches .....................................10 – 11
Prestige
Bavaria and its beer ........................................................12 – 14
Marketing
Concepts and campaigns .......................................................15
Gastronomy
Paulaner brewhouses worldwide ..................................16 – 19
Focal Point
Import champion Italy .................................................... 20 – 21
"Life is good wherever beer is brewed" is a saying among beer aficionados that we here in Bavaria naturally like to make
our own. And I am tempted to add, "Many things are also possible in the business sense wherever – good! – beer is
brewed." That is at least the message currently being communicated to us by the global beer markets.
In recent years, we have placed increasing focus on international business in our Beverages division. We are now promoting the systematic cultivation of a wide variety of export markets within the framework of Brau Holding International –
and are harvesting the first fruits of our labor. Facts and figures indicate that positive business performance abroad is the
decisive factor that allows the ongoing successful development of business despite a stagnating domestic market.
And in many places, we are only just getting started. In numerous countries, the desire for Bavarian beer is only now
awakening. We do not intend to miss this opportunity to set the right course there from the outset. After all, our specialties
are appreciated all over the world for their provenance, their deep local roots and their outstanding quality. We communicate these values to our customers and partners with great enthusiasm and in awareness of our centuries-old brewing
expertise. Based on this tradition and in accordance with modern business principles, we want to assume a leading role in
the segment for high-priced premium imports in our key markets – and with the Paulaner brand in particular.
This special supplement examines the factors that determine the success of future business on the international beer markets, indicates which milestones we have already achieved, and focuses on the challenges the next few years will bring.
What we do know is: If we want to successfully take advantage of worldwide sales opportunities with our southern German
beer and beverage specialties, we must keep our sights firmly set not only on working on the brands and markets but also
on the people and their different mentalities. I am sure that we will succeed.
Enjoy your read – preferably with a glass of great beer …
Future Market
Growth continent Asia ................................................... 22 – 24
Logistics
From Kulmbach to Shanghai ................................................. 25
Changing Consumption
What drives the beer market? ...................................... 26 – 27
Dr. jur. Klaus N. Naeve
3
Interview I 2012
Tradition and drinking pleasure: Bavaria's successful exports.
Mr. Tobias, let’s get straight to the
point: What is currently going on in
the international beer business?
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in Bavaria
ROLAND TOBIAS
FUTURE STRATEGY:
INTERNATIONAL BUSINESS
Potential and challenges for the BHI breweries
Roland Tobias has been a member of the executive board of the Schörghuber Corporate Group since
2009, as well as CEO of Brau Holding International (BHI). As chief executive officer of the Paulaner
brewery, he is also responsible for international sales of the brewery group’s top brand. He discusses his
assessment of the worldwide export market for beer and where he sees key opportunities for the BHI
brands in the interview.
4
The overall mood on the worldwide
beer market is positive, if not euphoric. The major international breweries are still making acquisitions,
growing dynamically, and analysts
still recommend buying their shares.
The market is definitely exciting
and also lucrative. We are also very
pleased here at BHI since our international business is developing extremely well. Exports at Paulaner
have increased to almost 30 percent
of overall sales and are still growing.
In other words, we have the largest
share among the German brewery
groups. If you take BHI as a whole,
this share is just under 20 percent.
Critics claim that German breweries
missed the boat where exports are
concerned and that the big global
players come from other countries
like Belgium or Denmark, for example. How do you explain the German
breweries' foot-dragging?
It's very simple: If the home market
offers little potential due to its small
size, you inevitably start looking for
new markets relatively early. That
is how these breweries got a head
start on the international market. The
German market, on the other hand,
was and is very large – there are still
1,300 independent breweries operating here today. This market provided
sufficient opportunities for growth
for all the breweries, with the result
that everyone initially concentrated
on getting the largest possible slice
of the domestic pie.
In 2009, BHI took important steps
towards securing the future of its
foreign business. What were they
exactly?
The German beer market has been
declining for years for a number of
different reasons, and it is likely to
stay that way. In light of this fact,
we have been investing heavily in
the foreign market since 2009: with
manpower, a more strategic focus,
but above all with a change in perspective toward a greater level of
internationality. Paulaner is currently
transforming itself from a small Bavarian brewery with an export business to an international brewery with
its headquarters and roots in Bavaria.
The excellent image that Bavarian
breweries enjoy has been a big help.
Bavaria is viewed around the world
as an appealing place, where people
know how to live, celebrate and enjoy themselves – with authentic traditions such as traditional costumes,
folk music and Oktoberfest. Not to
forget its first-class beer specialties.
Let's take a look at the markets: In
your opinion, where does the greatest potential lie with regard to sales
opportunities for the BHI brands?
Italy is traditionally an important
market for us, and we have positioned ourselves well there with
Paulaner but also with the Kulmbacher Group and are continuing to
grow. We also see potential in Poland
where, with Paulaner, we have a
very successful cooperation with
Heineken. However, most other European markets, especially in Western Europe, are struggling with these
same difficulties as the German
market. Our most important future
market is Asia. That is where we are
enjoying very dynamic growth with
the brands belonging to the Paulaner
and Kulmbacher Groups, and not just
in China but also in smaller countries
like Vietnam and South Korea. It is
important to establish a presence
early so that when the moment arrives and the market starts to experience dynamic growth, you can ride
the wave.
Compared with the industry's major
players, BHI operates in more modest dimensions as far as numbers
are concerned. What opportunities
are there for BHI on markets dominated by a few major players?
We see ourselves as a "craft brewer", in particular with our Paulaner
specialty beers. In other words, we
don't offer run-of-the-mill products
but rather handcrafted products, created with a love of exceptional taste,
that have been popular for generations. That makes us something
special on the international market,
particularly in combination with our
Bavarian roots and the Bavarian way
of life. In many markets, for example
in the USA, a degree of consumer fatigue has been developing for some
time now where interchangeable
mainstream brands are concerned.
At the same time, small specialized
breweries have been growing slowly
but steadily. A new beer segment
is emerging into which we fit perfectly, especially with our Paulaner
wheat beer. Alcohol-free beer and
beer-based mixed beverages also offer potential depending on the market and the brand. The main focus
at Paulaner, however, is on our core
product wheat beer. 
5
Interview I 2012
The Kulmbacher Group, which has
its own export department, is also
very successful on the foreign market, especially in China. It operates
independently of Paulaner because
it has its own comprehensive portfolio to offer and is pursuing different
sales strategies. The brands Fürstenberg and Schmucker – like the Pau
laner Group’s regional brands HackerPschorr, Auerbräu and Hopf – are all
marketed by Paulaner. They neatly
round off the portfolio and profit
from integration in Paulaner's international sales team. But it must be
said that Germany remains the core
market for our smaller brands. And
that will stay that way since these
are brands that were created in the
region for the region and do not possess the structural prerequisites, the
sales contacts or the size needed to
play in the international arena.
Bavarian beer meets Mediterranean flair: Paulaner beer garden in Tel Aviv.
 In many cases, the gastronomy
sector plays a big role in the success enjoyed in foreign markets.
The keyword here being "Paulaner
brewhouses". The first foreign brew
house was opened in 1992 in Peking –
there are now 20 in Asia alone and
23 worldwide. What makes the brewhouse concept so successful inter
nationally?
The Paulaner brewhouses have indeed been well received. We are
therefore optimistic that we will be
able to increase their number to almost 40 by the end of 2013. That is
a very ambitious goal. But it reflects
the dynamism and enthusiasm of
local restaurateurs, a large number
of whom approach us and want to
open a new brewhouse with us. At
the restaurants, we not only offer
original Bavarian beer and Bavarian
specialties but also communicate a
particular attitude to life. Anyone
visiting a Paulaner brewhouse, be it
alone, with friends or with business
partners, enter a world that is very
different to what local or regional
gastronomy offers. That is what
makes them so attractive, especially
in Asia.
6
"RECOGNIZING AND
UTILIZING
FUTURE
POTENTIAL"
generate the same level of awareness. We are nevertheless pursuing
new avenues in this sector, for example in Poland, where for the first
time outside of Germany we are having great success with a TV ad. These
kinds of activities will, however, remain the exception. We are of course
also carrying out conventional promotional activities in northern Italy,
Austria, France and the USA, which
take the form of special packaging or
displays, for example.
What other business models or strategies is BHI pursuing in the global
gastronomy and retail sectors?
What part has the Bavarian way of
life and tradition, as well as the positive image of Bavarian beer, played
in the Paulaner Brewery Group's international export success?
BHI now operates in 74 countries,
with heavy emphasis on gastronomy.
At Paulaner, for example, draft beer
accounts for approximately 50 percent of foreign business. Gastronomy
concepts are so important for us because they provide us with an opportunity to present our brands together
with their history. In the retail sector,
on the other hand, we are just one
brand among many. There you need
to make a considerably larger investment in conventional advertising to
A big one. In recent years, we have
observed a general trend towards
beer from Bavaria throughout Germany. A large selection of Bavarian
brands can now be found everywhere
from Lake Constance to East Friesland.
In addition to the high quality of Bavarian beer, Oktoberfest as a major
attraction for German and overseas
tourists also plays a big role. But if
you take a closer look, you realize
that it's not just about beer: traditional
costumes are experiencing a new
boom and, as far as the visitors are
concerned, "celebrating" also means
music, tradition, conviviality and Bavarian cuisine. The entire Bavarian
way of life seems to touch a cord,
particularly among young people.
And that of course includes beer. But
in this regard, there are only a few
brands that can boast true authenticity. Paulaner has no need for invention
or exaggeration, we simply impress
as the original Bavarian specialty that
we are. That is also why we aren't as
commercialized as one or the other of
our competitors.
BHI is home to the Paulaner Brewery Group, the Kulmbacher Group
and the Südwest Group, with their
authentic brands that have deep local roots. Do these brands all profit
equally from the euphoric mood and
dynamic export growth or are there
differences?
BHI has set itself ambitious targets.
By 2015, you want to increase foreign sales to 1.5 million hectoliters.
Is this a realistic target?
The figure 1.5 million hectoliters of
course seems like a very big number.
But this vision unleashes forces and
compels us to drive our business forward with great energy while also
making use of new tools. With this
strategy, we achieved double-digit
growth last year, were able to exceed the 1-million-hectoliter mark in
2012, meaning that the 1.5-millionhectoliter mark is definitely looking
like a realistic target. A high level
of flexibility is particularly important to our activities abroad. Every
market requires its own approach,
an individual "route to market". This
applies to both sales strategy and
marketing. And you always have to
open the doors on new opportunities. Our partnership with FC Bayern,
for example, continued to develop in
the following manner: We took the
"Paulaner Cup des Südens" to South
Tyrol and we took the team to China
with great success. We also currently have two Chinese trainees in the
company, who will receive an indepth introduction to the brand over
the next two years so that they can
later market Paulaner with a passion
in their country. These are all measures that have come into play with
our international orientation. And I
also believe this to be the right path
for the future. ■
AMBITIOUS TARGET:
EXPORT OF
1.5 m
2015
HECTOLITERS BY
7
Status Quo I 2012
top
news
++ 1-million mark exceeded ++
On the way to achieving the target that they have set for themselves, selling
1.5 million hectoliters of beer on international markets by 2015, BHI has cleared
a major hurdle: In 2012, it exceeded the magic 1-million-hectoliter mark for the
first time. This represents an increase in the volume of exports of almost 11
percent compared with the previous year. With over 654,000 hectoliters, the
Paulaner brand contributed the lion's share, followed by Hacker-Pschorr and the
brands belonging to the Kulmbacher Group. A crucial factor was business in Asia
and the Pacific region. In sum, the brands housed under the roof of BHI enjoyed
an increase of more than 30 percent in China alone last year. But business in
Italy and France also continued to develop well. Following the successful launch
of Paulaner's wheat beer campaign, Poland holds the top position among the
export countries with the greatest increase. BHI now markets its beers in a total
of 74 countries.
International market versus domestic market:
Globally diversified
Brau Holding International is already
represented on all continents and
reports an increase in sales in all
parts of the world. Although just a
few countries accounted for the
DYNAMIC GROWTH TAKES PLACE
ABROAD
8
Germany is the land of beer aficionados and beer producers. The large
number of independent breweries
and beer specialties provide proof
of this fact. The market is highly developed but also saturated: Growth
has been stagnating for years. It
is therefore almost inevitable that
German breweries turn their attention abroad if they want to continue
to grow dynamically.
Comparison of BHI's foreign and domestic business in 2012
In 2012, the volume of BHI beer sold
on the domestic market increased by
0.4 percent to 4.4 million hectoliters.
This means that the brewery group
with its regional beer specialties was
once again able to buck the general
downward trend on the overall market. Germany is still the land of beer
drinkers with an annual per capita
consumption of 170 liters – but consumption is declining from year to
year. Predatory competition is fierce. It
Foreign
Domestic
1.01 M
hectoliters
+ 9.7 %
compared to
prev. year
4.43 M
hectoliters
+ 0.4 %
compared to
prev. year
Growing global beer market
The global beer market will continue
to grow and will do so on all continents. According to a forecast by the
Canadean institute, worldwide beer
production will increase to over two
billion hectoliters by 2014. There will
also be a corresponding increase in
the segment for imported beers to
which the beers from BHI belong in
all countries except Germany. According to a survey of experts by the
Plato Logic World Beer Report, the
market for imported beer is expected to increase to 130 million hectoliters worldwide by the year 2015.
Experts expect the highest proportion of this growth to take place
in Africa and the Near and Middle
East with an average annual rate of
growth of 8.7 percent, followed by
Asia and the Pacific region with 7.8
percent. According to this scenario,
North America and Western Europe
will also see an increase, albeit significantly lower – they nevertheless
remain the largest markets in the
imported beer segment.
BHI's sales development
2012 vs. 2011 according
to region
Northern/Central Europe: + 53.7 %
5.44 M
hectoliters
+ 2.0 %
compared to
prev. year
Asia/Pacific: + 28.1 %
lion's share of exports during the
early days, this number has now
increased significantly. This means
that there is less dependence on individual markets.
Individual market analysis
With its range of southern German
specialties, the brewery group is
ideally positioned to participate at a
disproportionately high level in the
further growth of the global beer
market. This is because beer specialties make up one of the most promising segments in many markets.
In addition, German – and Bavarian
and Munich beers in particular – are
synonymous abroad with value and
a high level of quality. However, in
order to exploit as many opportunities as possible, each market must
be analyzed separately and handled
according to individual criteria. In addition to the size of the market and
the absolute volume of consumption, the "level of maturity with regard to specialties" is an important
criterion. While the taste for beer
in nations like the USA, Russia and
Italy has developed to such an extent that consumers appreciate not
only mainstream products but also
more expensive premium specialties,
"younger" beer nations must first
achieve this level of maturity.
Strategic approach
At BHI, a sophisticated international
strategy determines the level of priority with which the individual countries are handled and which brands
in particular are promoted in which
markets. Italy, China, Russia, the USA
and France are particularly important
markets for Paulaner. The brewery
is striving for aggressive growth in
these countries. The expansion of
the Paulaner brewhouse gastronomy
concept also plays a key role in this
context. The Kulmbacher Group places particular focus on Italy and China
as export countries. The sales strategy also differs from market to market. While Paulaner relies on its own
subsidiary to cultivate the market in,
for example, Italy, the USA and in the
future also China, in other countries,
the market is developed together
with an exclusive partner or a large
number of importers.
Making the vision reality
With this basic strategic framework,
the goal of increasing sales volume
by 75 percent – or 650,000 hecto
liters – compared with 2010 by the
year 2015 is getting closer and closer.
One milestone was already achieved
in 2012 (see "Top News").
BHI's sales markets in 2012 according to region
Austria/Hungary: 4 %
Africa/Middle East: 1 %
CIS: 5 %
Southern Europe: 7 %
Austria/Hungary: + 19.7 %
Africa/Middle East: + 13.9 %
CIS: + 5.6 %
Italy: 35 %
France: 9 %
France: + 3.1 %
is nearly impossible to achieve greater growth in Germany. This is however all the more possible abroad: In
2012, foreign sales for the BHI brands
increased by almost 10 percent. And
this trend is set to continue.
Italy: + 2.0 %
USA: 11 %
USA: + 1.3 %
Southern Europe: – 3.1 %
Northern/Central Europe: 12 %
Asia/Pacific: 16 %
9
STRATEGY I 2012
MARKET LEADERS AND
MARKET NICHES
" Big Four"
AB InBev
Belgium
in the international
beer business
How smaller, regional brands can hold their ground against global competition
The international beer business is characterized by competition at two levels. While the four largest breweries in the
world produce approximately 50 percent of the beer worldwide, generating about three quarters of the profits, and
attempt to snatch market shares away from each other, thousands of smaller breweries worldwide are exploiting a
different trend: the consumers growing desire for niche products and specialties far removed from the taste of mainstream beers.
SABMiller
UK
Carlsberg
DK
Production 2011 in million hL
sufficient opportunities. The global
boom in so-called "craft brewers" is
working in their favor. Weary of the
flood of mass-produced articles, more
and more beer lovers are turning
their backs on commercial brands and
purchasing more individual products
Special mission: Fürstenberg Premium Pilsener quenches any thirst.
they positioned themselves internationally early on, occupying the strategically important positions in the global
beer market. Strategic mergers and acquisitions have allowed them to divide
up the large slices of the pie in numerous markets between themselves.
Market niche: "craft beer"
But for many of the smaller breweries,
the smaller slices of the pie also offer
10
created using traditional craftsmanship. Beers that have their own distinctive characteristics, unique twists
and exceptional quality. This phenomenon can not only be seen in the USA
but also in Denmark, Italy and Portugal, and similar movements can even
be found in Brazil and Mexico.
Specialties from Bavaria
Germany's reputation as a country
of beer brewers and regional beer
specialties is legendary. Who then is
in a better position to act as a counterweight to the domination of the market
by run-of-the-mill beer with its own
brands? Bavarian specialties, like
Hefe-Weißbier, Dunkles, Doppelbock,
Festbier and Starkbier are received
with great enthusiasm almost everywhere they are found. The greatest
challenge for exporters like Brau Holding International is finding appropriate market access for each brand and
each targeted country.
Utilizing and developing opportunities
The BHI brands are already well established in the niche segment. Pau
laner Weißbier and Hacker-Pschorr
Helles, for example, as well as EKU,
Kapuziner Weißbier and Fürstenberg
Premium Pilsener, to name just a few.
In some cases, special packaging has
played a role in their success – such
as the very successful 5-liter can
marketed by the Kulmbacher Group
in Asia – sometimes, it is a gastronomy concept like the Kapuziner pubs
in Italy. The niche segments for alcohol-free wheat beer and beer-based
mixed beverages also offer significant potential internationally.
358.8
178.5
164.6
118.7
18.6
9.3
8.5
6.2
Percentage (%) of worldwide
beer production
The "giants" in the beer industry are
Anheuser-Busch InBev, SABMiller,
Heineken and Carlsberg. They come
from Belgium, Great Britain, the Netherlands and Denmark, countries that
are, if anything, rather small with small
market volumes. The very reason why
Heineken
NL
(Source: Barth Report, Market Leaders,
Edition 31.12.2011)
Brand with tradition
Excursus:
ort brand
p
x
e
t
s
r
fi
Kulmbach’s
All the brands in the BHI group have
deep local roots, strong regional
ties, and they value tradition. This
also applies to EKU, "the first Kulmbacher Export Beer Brewery Corporation” – founded in 1872 – from Germany's "secret beer capital". EKU
was the first brewery in Kulmbach
to export its products beyond the
Bavarian border. Initially, deliveries
were made by stagecoach to neighboring German states. But as early
as around 1900, EKU beers had already reached China – a newspaper
ad from a Peking newspaper dating
back to 1901, which can be found in
the brewery's own archives, advertises the newly arrived EKU beer.
A basic prerequisite for the early
export was a well-developed infrastructure: Kulmbach, for example,
already had a rail connection in the
19th century. This allowed the beer
to be brought to the ports for onward shipment relatively quickly.
The fact that these beers could
travel such long distances back then
is evidence of the high quality and
long shelf life of Kulmbacher specialties. Today, EKU beers can be
found in Italy, France, Asia, the USA,
Mexico, Russia and numerous other
countries. State-of-the-art logistics
systems now see to what in the
past was handled by the coachman
with his stagecoach. EKU is especially successful in China, where they
even have their own EKU fan club.
The careful selection of exclusive local importers is a key factor in this
success. Like the other brands belonging to the Kulmbacher brewery,
EKU is making quite a stir in Asia, especially with its 5-liter can – a packaging size that is particularly popular as a gift and as a talking point at
social gatherings. It is available at
shopping malls, delicatessens and
exclusive International Beverage
stores, where they cost from just
under to well over 30 euros. Those
who afford themselves this luxury
"made in Kulmbach" have every
right to be proud of it …
11
Prestige I 2012
The art of brewing, the art of enjoyment:
Real connoisseurs, of course, know
that there can only be one true
Oktoberfest. And therefore hundreds of thousands make their way
to Munich every year to experience
the white-and-blue festivities. What
they find so attractive is apparently
not just the beer but all the customs
and traditions, too: from celebrating
in traditional costumes as a matter of
course to the obligatory roast chicken
and giant pretzel through to the tune
"Prosit der Gemütlichkeit". Munich's
breweries regularly register a surge
in sales after Oktoberfest – and in the
number of inquiries from foreign initiators who would like to organize their
own festival or at least open their
own "original Bavarian" beer garden.
The fascination of
Bavarian beer tradition
Whether in Bangkok or Dublin, Tel Aviv or Stockholm: Munich's Oktoberfest has its fans – and "offshoots" – in all four corners of the earth. What is
probably the most widely exported festival in the
world has a catalytic effect on the Bavarian breweries' foreign business that should not be underestimated. Wherever Bavarian beer festivals gain
a foothold, beer befitting the occasion is not far
away. This is especially true of the top Oktoberfest brands Paulaner and Hacker-Pschorr. Even
though not every "Oktoberfest" actually deserves
the name, the festive mood is growing worldwide –
and with it the consumption of BHI specialties.
tains, beer an
d tr
Moun
adi
tio
n:
th
a
The cradle of Bavaria's beer-brewing tradition
One of our closest neighbors, Italy, is
a particularly avid supporter of the
Bavarian festival tradition. No festival in Upper Bavaria – in addition to
Oktoberfest, there is also the Munich
Salvator Festival and the Rosenheim
Autumn Festival – is without active
participation from the south. Not only
ordinary guests but also importers
and retailers are attracted to where
the Bavarian art of brewing beer
first originated. "Our customers from
abroad are very keen to experience
Bavarian beer culture and Bavarian
traditions firsthand," confirms Ferdinand Steinacher, chief executive officer of the Auerbräu brewery in Rosenheim. "Regardless of whether that
involves a visit to the traditional beer
festival or a tour of the brewery."
A KALEIDOSKOPE OF VIEWS
t
ha
sw
ti
rian Beer Queen
Bava
rep
r
the
e
se
nt
s.
12
Selected projects
The Paulaner Brewery Group carefully examines each of these inquiries but only involves itself in selected
projects. The objective is to protect
the name and the values associated with its own brands and avoid
them being diluted by poor-quality
offerings. There are approximately 20
festivals in countries such as Israel,
Ireland and Thailand that receive
active support from Munich and which
can be considered authentic representatives of Bavaria's festival and
beer garden tradition. This is where
the desire for Bavaria and Bavarian
beer is awakened. This increases the
attraction of the original. And not only
for guests from far away.
The prestige of southern German beer
What makes beer from Bavaria so
special; what makes it so popular
worldwide? These are the questions
we asked at home and abroad.
Barbara Hostmann, Bavarian Beer
Queen, Garmisch-Partenkirchen: "What
is so special about southern German
beer is without doubt its strict adherence to the German Purity Law
of 1516. The wide variety of Bavarian
beers is also very popular abroad."
Yarong Huang, graduate engineer in
brewing and beverage technology,
Technical University of Munich, Chair
of Brewing and Beverage Technology:
"Almost everyone in China is convinced that the best beers in the
world come from Germany. When
they hear the word 'beer', the first
thing that comes to mind as far as
most Chinese people are concerned
is Bavaria, Munich and Munich's
Oktoberfest beer festival. Chinese
beer lovers find the full-bodied flavor
of the beer and its fine frothy head
particularly attractive."
Franck Prandini, managing director
of DVB, Toulon-La Garde, France:
"Bavarian beer, especially Paulaner,
has become very popular in our region, in particular due to its consis
tently high level of quality, its image and the wide range of different
products."
Anetta Golda, brand PR manager,
Żywiec Sprzedaż i Dystrybucja Sp.
z.o.o, Warsaw, Poland: "For some
years now, a growing number of people in Poland have been taking an
interest in authentic beers and new
taste experiences. Paulaner wheat
beer is the perfect match for the growing desire for traditional recipes and
high-quality beer. Its natural ingredients and its unique flavor are making
it more popular in Poland day by day."
Bruno Perrella, brand manager, Casa
Flora Ltda., Rio de Janeiro, Brazil:
"In Brazil, Bavaria is considered to
be Germany's best beer region, not
least because of Oktoberfest. We
know that the enjoyment of beer
in Germany is a way of life, and we
therefore like beer that has its roots
there, not only because of its quality
but also because of its tradition."
13
Marketing I 2012
Talking to the
"beer pope"
Conrad Seidl
Excursus: Opportunities and limitations of
marketing strategies in the export business
The Austrian Conrad Seidl has been
a sought-after (beer) journalist and
beer specialist for many years now.
He writes about topics related to the
world of beer in numerous blogs
and has also published a number of
books in German including "Conrad
Seidls Bier Guide" and "Conrad Seidls
Bier-Katechismus". We talked to the
"beer pope" about Bavarian beer.
Anyone selling their beer internationally must also align brand management to the international markets. This presents a brewery like
Paulaner, with the size and scope
of its foreign business, with a real
challenge. Rather than developing
a large-scale international advertising campaign, what is required is a
target-oriented approach for each
individual export country.
Paulaner is focusing on conventional
TV advertising in Poland for the first
time. A TV campaign for Paulaner
wheat beer has been underway in
neighboring Poland since September
2012. The TV spot, produced in cooperation with distribution partner
Heineken, opens up the brand world
of this premium product to consumers. With great success: Paulaner
wheat beer enjoyed an increase in
volume of more than 130 percent
in 2012 compared with the previous
year. Therefore, the campaign is to
be expanded in 2013. The objective
is to boost growth rates in the Polish
wheat beer market and consolidate
Paulaner’s position there.
Poland is, however, the exception so
far. Conventional advertising cam-
What is the quintessence of the German beer tradition?
The German beer tradition is based
on its strong regional ties: Up until
150 years ago, Germany was a fragmented country and many of the
smaller states had no coastline – this
led to the development of a regional
beer culture with local beers, like
the (back then dark) Münchner, the
golden Kulmbacher, the sour Berliner and the strong Einbecker. And
all these beers were perceived as
particular local specialties when
they moved from one market to another. That is the quintessence of
German beer culture: confidence in
one’s own beer, curiosity about your
neighbor’s beer.
Why is the southern German or Bavarian art of beer-making so popular
in Asia in particular, but also among
Italians?
In German beer culture, there is the
perception that beer goes handin-hand with conviviality. Bavarian
beers convey this especially well: A
relaxed style of life, the celebration
of parties – this impression plays as
much a role as the easily approachable types of beer. Bavarian wheat
beer, with its effervescence, its low
level of bitterness and its fruity aroma, is extremely pleasant to drink,
even for beginners. To some extent
this is also true of Bavarian lager: a
14
He knows them all: the beer expert Conrad Seidl from Vienna.
beer that resembles international
lager beer in many ways but with
much greater aroma and a more pronounced mouth feel. These beers
also go perfectly with flavorsome
Asian and Mediterranean cuisine
and, thanks to their low level of bitterness, even with fish dishes.
What trends do you see ahead for
beer?
The most significant trend in all developed beer markets is the break
with mass consumption. In less developed markets like Asia, per capita
consumption will increase to the order of 80 to 90 liters per year; in the
highly developed markets of Central
Europe, consumption will decrease to
the amount. That doesn't matter as
long as a second trend is able to establish itself: drinking less but better.
Breweries have to adapt to the fact
that there are new consumer groups
that only drink one or two beers
every couple of days – but these may
well be strong beers with special
hopping, with special grains, or beers
stored in wooden barrels. And they
can cost serious money …
paigns only make sense if the coverage achieved can be utilized by a
corresponding distribution network
in the respective country. Paulaner
is, however, a niche provider in the
specialty segment in most countries
and, therefore, marketing focuses
on a different kind of brand management: Online communication via
international websites and social
media such as Facebook play an important role. The packaging design
and the presentation of brands in
the gastronomy sector are also key
factors in creating the desired brand
image.
Another important component in
international marketing is the sponsoring of the FC Bayern football
team. A sponsoring contract concluded in 2012 places increased
focus on foreign markets such as
China, Italy and the USA. In July 2012,
FC Bayern and Paulaner went on a
successful promotional tour in China.
Enthusiastic fans all over the country demonstrated the enormous
interest of the Chinese in Bavarian
football and the Bavarian way of
life. The first official FC Bayern fan
club in the People’s Republic was
founded in the Paulaner brewhouse
in Guangzhou during an autographsigning session with two FC Bayern
players. And social media networks
in China registered nearly half a million new fans and followers.
The new cooperation agreement
between Paulaner and FC Bayern
München also opens up further
On a promotional tour in China with FC Bayern.
What can breweries in this country do to generate a higher level
of awareness on the international
market?
The truth is that Germany – and Bavaria
in particular – is a fantastic source of
beer. Large breweries in every corner
of the world can brew pale lager beer
or even wheat beer quite well. But a
good Münchner Dunkles, a Doppelbock or an extremely hopped Weiß
bier attract international attention
and a wealthy clientele. German beer
brands must be synonymous with
craftsmanship and high quality.
Cheers! Chinese Paulaner fans in football fever.
opportunities for the successful
"Paulaner Cup des Südens". For
two years, the football casting call
for amateur footballers was held in
Germany and Austria – South Tyrol was added in 2012. Those who
qualify can play in the Paulaner
football team against professionals
from FC Bayern. 2013 might even
see participation of Chinese players in the international team for the
first time. However, in spite of this,
or because of this, the Pau
laner
brand plans to focus on its Bavarian
roots – after all, that is the secret of
its success.
15
GASTRONOMY I 2012
Between technology and tradition: Bavarian beer-brewing culture you can touch.
The first Paulaner brewhouse opened
its doors on Kapuzinerplatz in the
Bavarian capital in 1989 – in typical
Munich tradition, with Paulaner specialties freshly brewed on site and
Bavarian and international delicacies. Just three years later, in 1992,
the second establishment followed
but this time thousands of kilometers
further east, in China’s capital Peking.
From Bavaria out into the world: the Paulaner brewhouse in Singapore.
PAULANER BREWHOUSES:
SUCCESSFUL AMBASSADORS
MUNICH BREWING CULTURE
The "route to market" describes the path that products take to gain access to the consumers in a country. When it comes to the Paulaner Brewery Group's international beer business, one of these paths,
and a very successful one, goes via the Paulaner brewhouses. In just 24 years, the brewhouses have
successfully established themselves abroad as ambassadors of Bavarian beer-brewing culture and
Munich's "beer-crafting" tradition. The combination of bar, pub, restaurant, beer garden and brewery
offers a unique gastronomy experience. There are now 23 brewhouses worldwide – with emphasis on
Asia. And this number is growing …
16
explains Marcus Korte, export manager at the Paulaner brewery, "a sort
of walk-in brand world, where the
centuries-old Paulaner spirit can be
felt, and where – quite aptly – you
can take a mini-vacation in Bavaria."
This is ensured by the authentic atmosphere and, of course, by beer
that is freshly brewed by a trained
Paulaner master brewer in the genuine tradition of the craft and based
on old recipes using hops, malt,
yeast and water. Not to forget the
culinary specialties on offer, ranging
from roasted pork shank, sausages,
roast meat, and so on, to international cuisine and even food trends –
a further sign that tradition and
modernity are neatly blended at the
Paulaner brewhouse."
Professional concept
Paulaner Bräuhaus Consult, a wholly-owned subsidiary of the Pau
laner brewery, has been managing the Paulaner brewhouses since
1996. Their activities are guided by
the principles of professionalism,
continuity and the will to expand.
There are now 20 brewhouses in
Asia alone. Planning and work on
numerous others is already well underway, with the opening of 15 new
brewhouses planned for 2013 alone.
The brewhouse in Singapore enjoys
special standing among the ranks
of brewhouses. It is the only brewhouse that is not run independently
by a restaurateur but rather is owned
by the Paulaner brewery itself. It is
here, at the heart of numerous international trends, that new concepts,
processes and products are being developed and carefully tested before
being implemented in other brewhouses. It is the perfect place to test
the limitations and potential of existing and future brewhouse projects.
Beer-brewing culture you can touch
The fixtures, furnishings and ambiance reflect the basic values of
Bavarian "gemütlichkeit" or coziness,
embodied by solid natural materials
and a harmonious blend of traditional
and modern accents. The centerpiece
and impressive eye-catcher are the
copper kettles. They are symbolic of
our "beer-crafting" tradition, which is
filled with new life every day at the
highest possible level. Being able to
experience the brewing process live
is one of the things that makes a visit
to the brewhouse so attractive, especially in countries where craftsmanship is highly valued.
The "spirit" of Paulaner
What makes the brewhouse concept so popular abroad? "Each brewhouse is an independent microcosm,"
Brewhouses on the road to expansion
The appeal and the success of the
brewhouse concept have led to a
high demand internationally on the
part of foreign licensees. The fact
that Paulaner Bräuhaus Consult
quickly reviews inquiries and implements current projects with a high
level of professionalism is not least
due to the experience and knowhow gained over two decades of
brewhouse concept management.
These are prerequisites for achieving our ambitious goal of opening 15
new brewhouses during the course
of the current year. In other words,
the plan to combine established beer
tradition, the Munich way of life and
Paulaner beer in a clear and reproducible concept has proved a success. The aim now is to take this concept and use it to expand further and
open up new markets in cooperation
with partners around the world.
Paulaner wheat beer: at home wherever
good beer is appreciated.
17
GASTRONOMY
SPECIAL I 2012
its
Paulaner h
ple:
the Big Ap
THE FIRST
BREWHOUSE
IN NEW YORK
Rudolf Tauscher is familiar with the
city’s complex property market, he is
part of the large New York network,
and he knows how the authorities
operate. He also has the requisite
brewing know-how. As a child, he
was actively involved in his parent's
brewery in Tettnang – his love of
beer was, so to speak, instilled in him
in the cradle. And with the Paulaner
brewhouse, he is returning to those
roots.
Bohemian style
The location of this showpiece is the
Bowery – a street and small neighborhood on the Lower East Side. At
the beginning of the 20th century, a
large number of German immigrants
moved there – and to this day, the
neighborhood situated between East
Village, Canal Street and Chinatown
has remained somewhat unconventional. Its German heritage makes it
the perfect location for a gastronomy concept that combines Bavarian
tradition with cosmopolitanism. A
new microbrewery and restaurant
are being created there on a total of
18
4,000 square meters, spread over
two floors. Execution of this plan involved combining two existing buildings and blending them with modern
elements to create a sophisticated
industrial-design style.
American-style Bavarian cuisine
The Bavarian interior, common to all
Paulaner brewhouses worldwide,
carefully adapts itself to New York
taste. Rustic brick walls, oak flooring, Bauhaus lamps and maple tables
blend neatly with the highly-polished
fittings of the brewing equipment to
create a harmonious whole. The food
to be served has also been planned
down to the last detail. For example,
typical Bavarian sausage specialties
Successful blend of tradition and modernity.
“If I can make it there, I’ll make
it anywhere!” – Anyone wanting to convince the USA of the
Paulaner brewhouse concept
had better start in New York.
The first Paulaner brewhouse in
the USA is currently being developed in Manhattan. Primary responsibility lies in the hands of a
man who not only has extensive
knowledge of the metropolis but
also of its gastronomy and hotel
sectors: Rudolf Tauscher. Born in
Germany, he managed the “Mandarin Oriental” for ten years, establishing it as one of New York’s
top luxury hotels, before fulfilling
his lifelong dream of having his
own business with the Paulaner
brewhouse.
will be complemented by varieties
popular in the USA, such as Spanish
Chorizo. In addition to typical delicacies, there will also be a variety of
international coleslaws and – a novelty for New York – the "currywurst".
A Brooklyn bakery will deliver fresh
pretzels and whole-grain, dark rye
bread.
Grand opening in May
The grand opening is planned for the
end of May 2013. Once the brewing
process has started, it will take two
to three weeks before the first Pau
laner beer brewed in New York can
be tapped. But then a lot of glasses
will be raised – be it with a "prost" or
"cheers".
What is it like to launch a project
such as this in New York?
Insider with German roots:
Rudolf Tauscher.
Interview
The experienced hotelier and restaurateur talks about what might
well be his most exciting project.
The first Paulaner brewhouse in the
USA – a model for success?
The prospects are certainly good.
German beer and German hospitality – like German cars – are regarded
very highly in America. And Paulaner
is synonymous with the "craft brewer" quality that has been gaining in
popularity here in recent years: away
from the mainstream towards small,
fine, handcrafted beers. To appeal to a
wider target group, we are also catering to American habits when it comes
to the details, particularly where the
selection of food is concerned.
It's not all that easy, you need good
contacts. Initially, people here found
it hard to understand why we wanted to build a small brewery in the
city. There were also some neighborhood concerns about potential noise
issues. Great powers of persuasion
were needed. But we were able to
make it clear that the finished Pau
laner brewhouse would be an asset
to the area.
Did special building requirements
have to be observed – how did construction progress?
We did in fact have one or the other hurdle to overcome. The building
authorities imposed numerous restrictions, mainly related to environmental protection and safety. For example, we had to treat each building
as a separate unit and equip them
in accordance with the strictest fire
prevention regulations. But thanks
to our excellent contacts, progress
was made comparatively swiftly. Towards the end, hurricane Sandy was
responsible for a slight hold-up since
companies had hardly any available
capacity due to the large amount of
repair work that needed doing.
Could you imagine more Paulaner
brewhouses in New York and the
USA in general, or is there not likely
to be enough potential?
Without wanting to anticipate the
future: If this concept is as well received as we think and hope it will
be, then I could envisage at least
one or two more brewhouses here
in the city alone, and perhaps also
a few smaller locations where no
beer is brewed on site. I see the USA
as offering plenty of potential; 30
to 40 brewhouses are entirely conceivable. But for the time being, I’m
curious as to what New Yorkers will
have to say.
19
FOCAL POINT I 2012
Import champion Italy – a nation
of wine drinkers loves beer
gastronomy
g
n
i
r
o
b
h
g
i
e
N
Kapuziner pubs in
northern Italy
Italy is one of the most important beer markets for Brau Holding International. Of the one million hectoliters of beer exported in 2012, more than 300,000 hectoliters went directly to the Germans' favorite
holiday destination. Traditionally, (northern) Italy is the Kulmbacher Group's key foreign market – although marginally outperformed by China in 2012. And Paulaner recorded a 15 percent growth in volume
in 2012 in Italy.
Something has been brewing in
neighboring Italy: A whole generation of young beer brewers, the socalled "birrifici artigianali", has been
primed to reinvent the beer culture
in Italy. Their different types of beer,
which they handcraft in small quantities, make for a completely new
beer experience – fine, creative and
very Italian. Their unique taste is often achieved by adding grains, fruits
or herbs during the brewing process.
"Craft brewing" is booming. From a
marketing point of view, Italy has
now attained the status of a "mature specialty market" – making it
particularly attractive for BHI brands.
Wine or beer? Both please!
How is it possible that a country firmly anchored in our minds as a nation
of wine drinkers, and statistically the
second largest wine producer worldwide, has developed such a love of
Wheat beer, dirndls and pretzels are also popular in Italy.
*Source: The Brewers of Europe.
20
Like the Paulaner brewhouses in Asia,
the Kapuziner pubs in Italy are also a
showcase for good taste and authentic
Bavarian beer culture. They owe their
existence to the Kulmbacher brewery's longstanding collaboration with
Italian restaurateurs and beverage
wholesalers. For over four decades,
the brewery group has been exporting its specialties to this neighboring
country. This close relationship gave
birth to a particularly attractive form
of themed gastronomy that blends
authentic Bavarian beer specialties
and cuisine with a true-to-life ambiance and the heartfelt communication
of the southern German tradition of
enjoyment, pleasure and joie de vivre.
beer? It's quite simple: Even though
beer is gaining in popularity, particularly among 30 to 40-year-old
consumers, it has by no means supplanted wine. On the contrary, it is
regarded more as a welcome change
and addition. In Italy, what people
drink depends largely on what they
are eating. While meat, fish and
cheese are generally accompanied by
a good wine, many Italians now enjoy a cool lager or a fresh wheat beer
with their pizza and pasta or any time
in between.
Considerable scope for specialties
That this trend toward handcrafted
beer will also benefit German beer
brewers becomes clear when you
consider the sterling reputation that
German beer specialties enjoy in Italy.
The German-Italian Chamber of Commerce confirmed in its target group
analysis, "The Italian Beverage Market" (2010), that German brands were
the most successful among imported
beers. In fact, Italian products are
often given German names to boost
their sales. The segment for specialty
beers in Italy is also expected to see
significant growth. With a per capita beer consumption of 30 liters in
2011*, Italy offers plenty of potential.
approach:
Today, 15 stylishly appointed Kapu
ziner pubs exist, predominantly in
northern Italy. They are very popular
– another reason why the gastronomy
sector accounts for the lion’s share of
sales in what is traditionally the Kulmbacher brewery’s key export market.
The sustained success of the Kapuziner pubs is due not least to their high
standard of quality and ongoing cooperation between the brewery and
its partners. Can this concept be expanded into other countries? Thomas
Wölfel, export manager: "We are currently concentrating on expanding the
number of Kapuziner pubs in Italy."
However, "bearing in mind their great
success, nothing can be ruled out."
An excellent relationship: Auerbräu and
South Tyrol
The international beer business is not
always just about dry facts and figures. To achieve lasting success, personal relationships with customers
have to be maintained, whether they
are importers or direct customers.
One example of the extent to which
strong emotional ties can give wings
to business is Auerbräu. The Rosenheim brewery has been exporting its
specialties to neighboring Austria and
over the Brenner Pass to South Tyrol
since the 1980s. Places where a similar mentality and language can be
found – and a great love of Bavarian
beer and Bavarian traditions. Auerbräu
therefore invites its customers – re
staurateurs, retailers, associations – to
visit its production facilities in Rosenheim several times a year. First of all,
the guests are given an idea of the
brewing technology involved. Over
the past few years, the company has
made regular investments in stateof-the-art equipment to ensure that
it can maintain its high standard of
quality. The guests then taste the
various types of beer varieties while
enjoying a hearty "Brotzeit" or snack.
"This allows our customers to experience our brewing tradition firsthand,"
explains Managing Director Ferdinand
Steinacher. "They can ask questions
and are taken seriously – that benefits both sides." The success speaks
for itself: In 2012, more than 800 customers from Italy visited the brewery.
And when Rosenheim extends an invitation to its annual Autumn Festival,
these neighbors do not have to be
asked twice – which also has a very
positive impact on sales. In 2012,
15,500 hectoliters of beer flowed
from Rosenheim to Italy. And Steinacher sees great additional potential.
Thanks to the wide range of products,
people of all ages can discover their
"own" personal favorite Auerbräu
beer. "111 Zwickl", created in 2000 as
the brewery's anniversary beer, has
become a must-have trendy drink
among the younger generation, for
example. Related gastronomy-specific activities such as the “111 crown
cap" promotion provide an additional
boost to business. The trick being, in
this case, that if you find a 111 printed inside the crown cap, you get a
free Zwickl from the proprietor. And
there’s always room for one more …
21
FUTURE MARKET I 2012
When German beer brewers talk about the Asian market, they are primarily thinking of China –
despite the fact that the entire continent offers attractive growth rates. There is however a
reason for this concentration on China: It is by far the largest and, with its mass appeal, most
attractive market in Asia and, in the mean time, the world. In 2012, the volume of BHI beer sold
in China rose by 35.5 percent compared with the previous year – the growth rate in the entire
Asia-Pacific region (without China) was in the same order of magnitude, namely 35.3 percent.
These figures clearly reflect the
enormous potential inherent to this
part of the world. The current situation is good: The excellent reputation
enjoyed by the Bavarian beer tradition, the appeal of Munich's Oktoberfest and the German-European cultural heritage are all factors that can
and should be leveraged. Not to forget the very special flavor profile of
Bavarian beer specialties: fresh and
fruity wheat beer could not be better
suited to Asia, and Munich light lager, with its well-rounded flavor, also
goes down well here. In addition,
consumers appreciate a wide variety
of products – which is ideal for Bavarian exporters, who have a whole
range of different beer specialties
in their portfolio, from Oktoberfest
beer to dark beer to Salvator beer, to
name just a few.
GROWTH MARKET ASIA:
GREAT THIRST FOR
SOUTHERN GERMAN BEER
22
A discerning import country
1.3 billion Chinese consumers: this
figure makes it easy to overlook
the fact that the market can also be
tricky for Europeans. Dr. Martin Bém,
with his company Ponte & Partners,
is the exclusive agent for the AsiaPacific region and exclusive importer
for Singapore. In his opinion, exporting companies need to take a more
differentiated and careful approach
to the Asian markets. It begins with
communication: It is important to
adapt to the mentality and language
of the partner. Differing priorities can
also influence how business is conducted. While, for example, Japanese
customers consider a ripped label
a reason for complaint, Chinese importers find it difficult to grasp German working hours and accept how
this impacts on the terms of delivery.
In cases such as these, respectful
communication is the name of the
game. "In Asian markets, the importance of the local network and distribution should never be underestimated and the importance of one's
own brand never overestimated,"
explains Dr. Martin Bém. You have to
take this on board if you want to operate successfully.
Enjoying beer Chinese style
Even consumers in Asia are not always predictable. Wealthy Chinese
consumers follow their own principles of consumption. Luckily, premium beer from Bavaria very much
suits their taste. The Chinese target
group for German beer specialties –
measured in terms of the total population – is relatively small and spread
across the entire country, requiring
maximum distribution performance.
Consumers are usually young, economically independent, wealthy city
dwellers from the middle and upper
classes, who enjoy being sociable.
They value not only the quality and
tradition of Bavarian beer but also
the price of German beer. Its positioning in the high-priced premium
segment is therefore the key to the
Chinese market – it turns a coveted
product into a luxury good and status
symbol. Public enjoyment, for example in a restaurant or a Paulaner
brewhouse, contributes significantly
to the prestige of the buyer, which is
why gastronomy concepts are particularly effective in Asia.
Diversity of the markets
Other Asian countries besides China
are also of great interest when it
comes to exporting beer. They can
be broken down into markets with
high potential like South Korea, rapidly growing markets like Vietnam,
"occasional" markets such as Indochina, Indonesia and the Philippines,
as well as markets with particularly
wealthy consumers, such as Singapore, Hong Kong and Japan. In Malaysia and Thailand, Paulaner has
already established itself as the market leader among imported beers.
In principle, the market for imported
beer is growing in all these countries
but so is competitive pressure. That
is why it is particularly important to
have local partners, who – according
to Dr. Martin Bém – "serve as an interface between the different mentalities and, at the same time, convey
and 'translate' the brand positioning
and history of Bavarian beer."
Group photo with monk: sophisticated fan club culture in China.
23
Logistics
SPECIAL I 2012
FROM KULMBACH
TO SHANGHAI
Excursus:
Thrilled with Paulaner: Qishuang Zhu (left) and Ranran Guo (right).
In the rapidly growing Chinese market, out-of-the-ordinary measures
are sometimes needed to steer business in the right direction over the
long term. One such measure is a
trainee program that was launched
by Paulaner – for two particularly
committed young Chinese entrepreneurs and one important goal: establishing a subsidiary in China.
Ranran Guo and Qishuang Zhu, who
started the trainee program in autumn 2012, will get to know Pau
laner from the bottom up during the
24 months of their training. They
will not only be made privy to the
secrets of the art of brewing Pau
laner beer, but they will also get to
know the spirit behind the brand
at its place of origin. This will allow
them to develop an emotional bond
with the brand that could prove very
important to business later on. Both
trainees see their personal future in
the fast growing German-Chinese
economic relations. “I would like to
24
Export promotion
with a personal
touch: two Chinese
trainees at
Paulaner
gain my initial work experience in
Germany”, says Zhu, who first studied German and then business administration and has been living in
Germany since 2008. In the medium
term, however, she sees her future
back in China. As a beer lover, she is
looking forward to "promoting one
of Germany’s most traditional beer
brands on the largest beer market in
the world". Ranran Guo, who trained
as a lawyer and has a BA in business administration and economics, also already identifies strongly
with Paulaner. Like his colleague,
he has also been living in Germany
for several years and he learned to
appreciate Bavarian beer early on.
He sees himself as a "beer ambassador", who will bring "authentic
Bavarian beer culture" to his home
country "with the framework of
Paulaner China". Paulaner's trainee
concept is a classic win-win situation: While the future "Paulaner
China" representatives gain knowhow, contacts and a deep under-
standing of the brand's Bavarian
roots and can use these to develop
suitable strategies for the Chinese
market, Paulaner profits from credible representation of the brand.
Both sides see potential enough
for the Munich specialties. "In
China, Germany is no longer synonymous with just cars and football but also with beer and roasted
pork shank," says Qishuang Zhu.
Two things have already made a
great impression on Zhu and Guo,
as they themselves admit: On the
one hand, the perfectionism and
customer-orientation with which
beer is brewed, filled, marketed and
sold at Paulaner. And on the other,
warm personal relationships that
make not just the trainee program
so successful but also GermanChinese business dealings.
Logistical challenges and their solution
When Chinese beer lovers treat themselves to the luxury of Bavarian beer, it is perhaps also the hint of the "exotic" inherent to products from afar that they enjoy. Almost 9,000 kilometers, as the crow flies, lie between Kulmbach and Shanghai,
for example. The fact that bottles, barrels and cans from Upper Franconia can reach beer lovers undamaged and with no
deterioration of their contents can be attributed to a modern, intelligent logistics system. It not only responds flexibly to
customer-specific demands but also implements numerous measures to provide quality-preserving "travel comfort".
Quality that matters
It can take anything up to ten weeks
for the beer specialties from Bavaria
to reach their final destinations. The
ongoing optimization of brewing processes is the reason why there is no
need for additives – even when the
beer will be traveling long distances.
The Kulmbacher brewery also makes
sure that the beer destined for faraway places is not bottled until just
before it sets off on its long journey. It is primarily the 5-liter cans –
a packaging unit that is particularly
popular in China – that are shipped
directly from Kulmbach in Upper
Franconia. These cans are easy to
load and can be shipped relatively
cheaply due to their light weight.
However, only robust, high-quality
cans are used since product integrity
is of the utmost importance.
Loading with kid gloves
The containers are primarily loaded
by hand to ensure optimum utilization of the available shipping space
and to guarantee the perfect condition of the transported goods. The
loads are carefully secured to absorb
impact and protect against any type
of damage during transport. Maintaining a constant temperature range
is also important for preserving
quality. Regular temperature checks
provide information as to whether
deviations from this range occurred
during transit. Keeping the loads below the water line provides protection against excessive heat. Should
it be necessary, the brewery can also
make use of temperature-controlled
containers. So far, however, complaints remain the exception. "The
number of complaints is extremely
low," says Kulmbacher's logistics
manager, Christian Scheele.
"Just in time" logistics
Rising export figures bring logistical
challenges. "There is a world of difference between 2005, when the first
container was sent to China, and today," explains Scheele. "We now load
about 360 containers per year." This
will not be possible for much longer
without increasing loading capacity
through optimized loading technology. Generally speaking, a high level
of logistics flexibility is needed since
more order sizes are involved today
than in the past – in particular individual and to some extent smaller order sizes. Just-in-time deliveries, both
near and far, guarantee maximum
beer quality and shelf life. The logistics manager explains that, in order to
meet the different needs of the markets and their legal regulations, it is
also very important to stay informed.
There is no doubt, however, that it is
well worth the effort.
25
CHANGING CONSUMPTION I 2012
whole remained almost unchanged,
standing at +0.2 percent in 2011 compared with the previous year. The
high rates of growth in production
and consumption are, however, taking place elsewhere.
Average per capita consumption of beer
(in liters) in selected European
countries 2011
Czech Republic 154
Austria 108
Germany 107
Poland 95
Great Britain 72
Spain 48
France 30
Italy 30
Forecast and reality: What
direction is worldwide beer
consumption heading?
Like everything in the world, the production and consumption of
beer is also subject to a variety of influences and interrelated forces. General economic conditions, global events, social trends and
demographic developments all have an impact on lifestyles and dietary patterns. Monocausal explanatory models therefore fall short
when it comes to understanding the beer market.
increase in countries where domestic
production is declining or stagnating
if, at the same time, the import of
foreign beer is increasing accordingly.
striving for Western-style prosperity – beer consumption will most likely
reflect this fact in the next few years.
According to forecasts in the Plato
Logic World Beer Report, the beer
market in Central and South
America will increase by about
Buying power and consumer
3.3 percent annually up until
Per capita consumption of beer
(in liters) in selected
behavior
2015. Many African and Arab
non-European countries 2011
For example in China. Of all the
countries have an even higher
Asian markets, it is the Chinese
level of pent-up demand: By
market with its 1.3 billion con2015, their share of growth on
sumers that offers the greatthe worldwide beer market could
Russia 75
Brazil 62
est potential for growth. And
rise significantly, with an annual
indeed domestic beer producincrease of almost 5 percent.
tion in the People's RepubHowever, to which heights beer
lic increased from 220 million
consumption can rise, whether
India 2
hectoliters in the year 2000 to
and when it will once again fall,
China 36
just under 490 million hectoliand what impact this will have
ters in 2011. The reason for this
on beer imports depends on a
development is that in China,
number of factors. These inas in many Asian countries,
clude not only general economic
USA 75
a wealthy middle class has
conditions but also the politiemerged for whom beer concal framework. And last but not
sumption has become a status
least, the success of the various
symbol. Generally speaking, ecoForecasts and their limitations
export brands depends on the respecnomically ascending countries norCountries in which increasing prostive target group. The development of
mally exhibit strong consumerist beperity allows (beer) consumption
premium brands, which target niche
havior that also extends to products
to rise are particularly interestsegments, is for example often indefrom the luxury segment. Incidening when it comes to exports. These
pendent of the market. Conclusion: In
tally, beer production figures alone
countries offer importers the opporthe future, beer manufacturers must
do not always reflect such developtunity to occupy their respective segcontinue to look carefully if they want
ments. This means that consumption
ment early on. Numerous countries
to identify and profit from marketmay well remain unchanged or even
in Central and South America are also
specific potential for their brands.
Expected growth in the beer market worldwide in millions of hectoliters from 2010 to 2015
(by volume)
(Source: Plato Logic World Beer Report)
Inner circle: 2010
Outer circle: 2015
292.7
(– 0.2 %)
Western Europe
293.2
At least one thing is clear: Beer consumption is apparently relatively
crisis proof and tends to be independent of economic developments.
Neither during the oil crises of 1973
and 1979/80 nor in the context of
the much-cited European sovereign
debt, or eurozone, crisis were notable declines in beer production registered in the countries affected. The
26
Barth Report, which has been documenting changes on the hop and
beer markets for many years, attests
to more or less stable development
in Spain, Greece and Italy between
the years 2009 and 2011, for example. While overall beer production in
the European Union increased slightly, namely by 1.3 percent, the increase in production for Europe as a
Eastern Europe
124.3
(+ 19.6 %)
Africa, Near and
Middle East
103.9
281.2
(+ 0.9 %)
256.8
667.9
789.3
(+ 18.2 %)
Asia/Pacific
275.1
283.9
(+ 3.2 %)
294.4
North America
336.9 (+ 14.4 %)
South and Central America
including Mexico
27
Financial Information
Published by
Schörghuber Corporate Group
Denninger Straße 165 • D-81925 München
Phone +49 89 9238-03 • Fax +49 89 9238-603
[email protected] • www.sug-munich.com
Brau Holding International GmbH & Co. KGaA
Denninger Straße 165 • D-81925 München
Phone +49 89 9238-08 • Fax +49 89 9238-429
[email protected] • www.brauholdinginternational.de
27
Group Management Report | 2012
Group Management
Report 2012
Schörghuber Stiftung & Co. Holding KG, Munich
1 Overview of the company
1.1 Organization
2 Summary of the business year
Schörghuber Stiftung & Co. Holding KG is the main holding company of the Schörghuber Corporate Group. In its
capacity as a strategic financial holding company, it manages the group’s four business divisions: Construction & Real
Estate, Beverages, Hotels and Seafood. The former Aircraft Leasing division is disclosed on the balance sheet as a
discontinued operation in accordance with IFRS 5.
Although the organizational structure of Schörghuber Stiftung & Co. Holding KG corresponds largely to that of a joint
stock corporation, it does include elements of Swiss company law. The company has a foundation board comprising
at least six members; its rights and obligations are comparable with those of the supervisory board of a joint stock
corporation. The foundation board is chaired by Alexandra Schörghuber, the representative of the owning family. The
company’s executive board comprises at least two members. It currently has five members. The members of the executive board are Dr. Klaus N. Naeve (chairman), Dr. Jürgen Büllesbach, CEO of Bayerische Hausbau GmbH & Co. KG,
Roland Tobias, CEO of Brau Holding International GmbH & Co. KGaA, Christoph Michl (since September 2012),
managing director of Schörghuber Corporate Finance GmbH, and Alexandra Schörghuber.
2.1 Macroeconomic trends
1.2 Corporate structure
Bayerische Hausbau GmbH & Co. KG, the holding company of the Construction & Real Estate division, is structured
as an operationally active parent company. The company is directly responsible for project development business.
Bayerische Hausbau Projektentwicklung GmbH, formerly in charge of project development, will now merely wind
up the projects already launched. The whole property management operation, as well as the management of condo
miniums, is bundled under the roof of Bayerische Hausbau Immobilien Management GmbH. Bayerische Hausbau
Immobilien GmbH & Co. KG is responsible for managing the lion’s share of the real estate property portfolio. In
addition, a number of property companies take care of the management of properties under development and existing
real-estate. The prefabricated homes segment is operated by Hanse Haus GmbH. Bayerische Hausbau GmbH & Co. KG
is fully consolidated.
28
As a holding company, Brau Holding International GmbH & Co. KGaA manages the Beverages division. The holding comprises the subgroups Paulaner Brauerei GmbH & Co. KG (50 % stake; the other 50 % being owned by
Paulaner Brau Beteiligungs GmbH, a wholly-owned subsidiary of Schörghuber Stiftung & Co. Holding KG), Kulmbacher Brauerei AG (a listed company, 63 % stake), and what is known as the Südwest Group comprising Fürstlich
Fürstenbergische Brauerei GmbH & Co. KG and Privatbrauerei Hoepfner GmbH (each 100 %). As before, Brau
Holding International GmbH & Co. KGaA, which is run as a joint venture with our partner Heineken International
B.V., is consolidated at equity.
In the Hotels division, German hotel operations are bundled under the roof of Arabella Hospitality SE. As the company
is wholly owned by Schörghuber Stiftung & Co. Holding KG, it is fully consolidated.
As of 1 July 2011, the Seafood division was incorporated in the Schörghuber Corporate Group and its figures consolidated in those of the Inversiones Stefal SpA financial holding, Chile (Stefal). This subgroup is involved mainly in the
production and processing of Atlantic and Pacific salmon, as well as salmon trout. The operations side of this business
is run by Productos del Mar Ventisqueros S.A. (Ventisqueros).
Schörghuber Corporate Finance GmbH operates as an in-house bank handling group financing and payments.
The wholly-owned subsidiary, Bavaria International Aircraft Leasing GmbH & Co. KG, is assigned to the financial
department and has been disclosed as a discontinued operation since the 2011 business year.
The world economy slowed further during the year under review, the crisis in the eurozone being a major contributing factor in the weak global dynamics. The emerging economies of Asia and Latin America did, however, begin to
show signs of growth, the economies of China and Brazil, in particular, recovering markedly by the end of the year.
The US economy too continued along the road to recovery: the real estate market appears gradually to be achieving
some stability, while the current high levels of unemployment are now falling steadily. That said, ongoing uncertainty
concerning the pending measures to reduce sovereign debt is a burden on the markets.
Even if intervention on the part of the European Central Bank has brought a degree of stability to the eurozone – and
this has certainly had a beneficial effect on interest rates in the southern eurozone countries, it is still too early to say
that the crisis is over. The situation in Greece remains difficult. There and in the other crisis-stricken southern eurozone
countries too, massive resistance to the austerity measures has emerged.
Above all, foreign trade has provided a positive catalyst. While imports have stagnated due to weak domestic demand,
exports in most of the major eurozone economies have proved a positive growth driver on the back of burgeoning demand from the emerging nations.
Economic growth in Germany was much stronger than in the rest of the eurozone. The specialized product range
offered by highly competitive German exporters coupled with dynamic growth in the emerging countries led to increasing demand for German goods. Due to the weakness of the eurozone, however, growth in sales markets was lower than
the rise in world trade volume. According to the German government, exports of goods and services grew by 4.1 % in
real terms in 2012. After a 3.0 % rise in the previous year, Germany managed to increase its GDP by 0.7 % (adjusted
for inflation) in 2012 despite the difficult operating environment, and was once again a key economic driver in Europe.
On the whole, the eurozone posted growth of – 0.4 %, the USA growth of + 2.3 %.
Unlike in previous years, Germany’s economic growth was based not solely on exports, but increasingly on domestic
demand as well. The main reason for this is the robust employment market. Germany’s unemployment figure was just
29
6.8 % compared with an average rate of 11.3 % for the eurozone as a whole and 8.1 % in the USA. Although the rise
in the number of people in work has come to a standstill since the late summer of 2012 and unemployment has risen
slightly, redundancies were largely avoided through the introduction of shorter working hours and reductions in overtime. The average core inflation rate for the year was just 1.3 %.
The European Central Bank remained true to its policy of low interest rates. This did, however, enable German companies, in particular, to obtain refinancing at record-low borrowing rates on the capital markets.
2.2 Business divisions
2.2.1 Construction & Real Estate
2.2.1.1 Organization and structure
The Construction & Real Estate division is consolidated in the Bayerische Hausbau GmbH & Co. KG subgroup. It
comprises the following areas of business: project development, which is managed directly by Bayerische Hausbau
GmbH & Co. KG, real estate with the principal company Bayerische Hausbau Immobilien GmbH & Co. KG, property
management, which is bundled under the roof of Bayerische Hausbau Immobilien Management GmbH, and prefabricated homes with Hanse Haus GmbH.
2.2.1.2 Industry trends
After a slight fall in the first half of the year, the economic index for the real estate industry regained some ground
towards the end of the second six months, in particular. According to market surveys, this positive appraisal was based
on an apparent alleviation of the sovereign debt crisis in the eurozone at the turn of the year.
Market analyses conducted by several renowned consulting firms suggest that the German real estate industry will
develop on a stable footing in the coming year. For this reason, high transaction volumes are on the cards once again
for 2013. In addition to the enduring historically low interest rates, the main driver of this trend is the ongoing flight
into tangible assets and property. The main focus of investors is commercial retail and residential property in Berlin
and the principal cities in western Germany.
The volume of transactions in the German commercial real estate market in 2012 was EUR 25.6 billion (previous year:
EUR 23.5 billion), with foreign buyers constituting around 40 % of the total. At the same time, the vacancy rate in the
major German markets for office space fell significantly. For this reason, leasing and vacancy rates are, for the most
part, expected to remain stable in 2013.
The private-sector housing market, too, maintained stable levels of growth in 2012. Although rents and purchase prices
increased again over the previous year, especially in Germany’s major cities, they actually remain at a moderate level
by international comparison.
Sales of prefabricated homes amounted to around EUR 1.8 billion in 2012, compared to EUR 1.5 billion the year
before. The proportion of single- and two-family residences in the overall construction volume increased slightly to
around 15.5 %. All told, the industry is expecting developments to remain on a positive footing in the future.
30
2.2.1.3 Development of business
2.2.1.3.1 Real estate
The investment volume in real estate totaled EUR 221.1 million in the year under review (previous year: EUR 44.1
million). The main investment was the acquisition of the property at Kardinal-Faulhaber-Strasse 1. Project development activities for the major Bikini Berlin and Joseph Pschorr Haus projects generated costs of EUR 48.1 million and
EUR 34.4 million respectively. In addition, EUR 12.8 million (previous year: EUR 13.4 million) was spent on ongoing
maintenance and costs in connection with tenancy changes.
In 2012, the rental volume for office, retail and hospitality space amounted to 28,300 m² (previous year: 70,000 m²)
for new tenancies and around 25,700 m² (previous year: 25,000 m²) for renewals. In the case of new tenancies, Munich
accounted for 41 % of the total, Berlin for 26 %. The Waldschlösschen project, where a former cinema complex has
been leased out as rehearsal space to Dresden’s Philharmonic Orchestra, constituted a further 5,800 m² or 20 % of the
total. Not including property under development, the total vacancy rate of our real estate portfolio amounts to 6.1 %.
The sale of existing property in the context of portfolio management generated revenues of around EUR 10 million
(previous year: EUR 36 million).
Last year, Bayerische Hausbau Immobilien Management GmbH, which manages both its own and third-party property,
as well as condominiums, successfully completed a certification process leading to the award of TÜV-approved property manager.
2.2.1.3.2 Existing real-estate projects
Structural work on the Bikini Berlin project is now largely completed, as is work on the facade of the hotel complex.
Work has now also commenced on the technical infrastructure of the buildings across the whole site. Further leasing
contracts were concluded by the end of 2012.
Construction of the already fully leased Joseph Pschorr Haus commercial property in Munich is on schedule, with
transfer of the units to the commercial tenants set to begin on time in April 2013. The shopping facilities are due to
open in autumn 2013.
Planning approval having been obtained, work commenced at the start of 2013 on demolishing the existing building
on Bayerstrasse in Munich in order to provide space for the construction of a modern hotel with 184 rooms. The leaseholders are Arabella Hospitality SE who will manage the hotel under the Aloft brand on the basis of a management
agreement with Starwood Hotels & Resorts Worldwide, Inc.
The famous Donisl restaurant on Munich’s Marienplatz closed its doors at the end of 2012. Essentially, the building
will be fully refurbished while retaining the listed facade. The restaurant is due to reopen in 2015.
2.2.1.3.3 Project development
Despite increasing prices, high demand for apartments in the central areas of Munich continues unabated. At EUR 91.4
million, the volume of notarized transactions was just under the figure for the previous year (EUR 96.5 million). A total
of 194 units (previous year: 211 units) were sold. The booking volume also decreased slightly due to the drop in supply.
Of the 374 apartments in the WelfenHöfe project in Munich, all but two have now been sold. Virtually all the apartments in the apartment complex were transferred to the new owners in 2012.
Structural work on the two Munich projects Am Luitpoldpark and FürstenBerg is all but completed. Of the 141 apartments in total, 120 have already been sold. Transfer of the two projects is due to take place in 2013.
31
Of the 141 apartments in the Parkside Lokstedt joint-venture project in Hamburg, all but three have now been notar
ized. Here too, the apartments in the complex will be transferred to their owners in 2013.
Several plots of land or sites with space for over 900 residential units and commercial space are currently being
developed. This does not include the project to develop a residential site on Munich’s Nockherberg on the site of the
Paulaner brewery which is due to commence in 2017/18 once the brewery has relocated. 1,500 apartments are set to be
built on the site, with a further 14,000 m² available for other purposes.
2.2.1.3.4 Construction of prefabricated homes
Despite the ongoing difficult market environment, 2012 saw sales of prefabricated homes rise by 15 % to EUR 77.4
million (previous year: EUR 67.3 million). A total of 314 homes (previous year: 287) were supplied to new owners.
With new orders of EUR 93.0 million in total, the orders on hand at the end of 2012 stood at EUR 90.8 million (previous year: EUR 89.0 million) or 398 new homes (previous year: 394 homes).
2.2.1.4 Earnings, assets, and financial position
The Construction & Real Estate division generated total revenues of EUR 388.8 million (previous year: EUR 263.1
million). Of this amount, real estate accounted for EUR 132.9 million, while the sale of developer properties accounted
for EUR 178.5 million and prefabricated homes for EUR 77.4 million. Gross profit on sales amounted to EUR 145.9
million. At EUR 35.2 million, the balance of other operating income and expenses was positive in the reporting year.
This includes an amount of EUR 34.7 million (previous year: EUR 109.1 million) attributable to unrealized changes in
the fair value of investment property. All told, the Construction & Real Estate subgroup (Bayerische Hausbau GmbH
& Co. KG) posted consolidated earnings of EUR 83.6 million (previous year: EUR 103.3 million) after tax. The cash
flow from business operations in 2012 amounted to EUR 44.4 million after EUR – 6.7 million in the previous year.
The subgroup EBIT is calculated as the operating income plus the earnings of companies valued at equity. Adjusted for
the effects of fair-value measurement of EUR 34.7 million in total (previous year: EUR 109.1 million), the subgroup’s
EBIT amounted to EUR 153.9 million (previous year: EUR 174.8 million). The subgroup’s EBITDA stood at EUR
122.3 million (previous year: EUR 69.0 million).
Total assets on the balance sheet increased to EUR 2,661.5 million (+ 9.7 %). Non-current assets accounted for 90.2 %
of the total assets. By and large, this is property held for investment purposes. The equity ratio of the Construction &
Real Estate division is 41.8 %.
2.2.1.5 Forecast
We predict stable growth for real estate business. No major sales are planned. As the property is now fully rented out,
income from the major THE m.pire project will increase significantly in 2013 and lead to a corresponding rise in the
operating income of this division. On the basis of current forecasts for economic growth, in particular with regard to
our core operating region of Bavaria, we are predicting stable market growth (fair-value measurement) for our business
portfolio in 2013.
Due to cyclical trends and since individual sales cannot be calculated using the “percentage of completion” (PoC)
method, revenues from project development are set to be lower in 2013 than in the previous year. We are again expecting a positive result in the area of prefabricated homes.
All told, we expect the Construction & Real Estate division to deliver a result for the period at least at the previous
year’s level.
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Due to the cyclical nature of project development business, we expect to post a slight fall in sales in 2013 compared
with the year before. We are looking at revenues of between EUR 340 million and EUR 360 million.
2.2.2 Beverages
In terms of company law, the Beverages division is consolidated in Brau Holding International GmbH & Co. KGaA.
50.1 % of the shares in this company are held by Schörghuber Stiftung & Co. Holding KG and 49.9 % by Heineken
International B.V. as part of a joint venture. Furthermore, Schörghuber Stiftung & Co. Holding KG indirectly holds
the other 50 % of Brau Holding International GmbH & Co. KGaA’s 50 % stake in Paulaner Brauerei GmbH & Co. KG.
Notwithstanding this majority holding, all key management decisions affecting the Beverages division are taken in
consultation with our joint-venture partner Heineken International B.V. For this reason, Brau Holding International
GmbH & Co. KGaA is carried at equity in the consolidated accounts of Schörghuber Stiftung & Co. Holding KG.
With its shareholdings in Paulaner Brauerei GmbH & Co. KG, Kulmbacher Brauerei AG, Fürstlich Fürstenbergische
Brauerei GmbH & Co. KG and Privatbrauerei Hoepfner GmbH (Südwest Group), Brau Holding International GmbH &
Co. KGaA’s locations are centered on the federal German states of Bavaria, Baden-Württemberg, Hesse and Saxony.
At around 81 million hL, total beer sales in Germany in 2012 were 2.1 % down on the previous year, this despite major
summer events such as the European Soccer Championships and the Olympic Games. At 15.3 million hL, however,
total beer exports were virtually the same as in the previous year. The slump in sales in EU countries was offset by
an increase in exports to third countries. The alcohol-free beer segment, in particular, provided the German brewing
industry with growth impetus in the year under review. Sales of alcohol-free beer in Germany rose significantly – albeit
from a relatively low level, increasingly becoming a key success factor in the product portfolios of German brewers.
The decline in gastronomy-based business in favor of home consumption, increasingly intense price and cutthroat
competition in the domestic market and, in contrast to this, the trend towards regional markets and specialties were a
growing challenge for the brewing industry.
All told, Brau Holding International GmbH & Co. KGaA with its Paulaner, Kulmbacher, Fürstenberg and Hoepfner
brewery groups can look back on 2012 with a degree of satisfaction. Running counter to the market trend, domestic
sales of beer increased by 0.4 % to 4.437 million hL. This development was especially gratifying in light of the Paulaner
Brewery Group’s price increases at the end of 2011. The positive trend received added impetus from, among other
things, a focus on growth segments in the market (e.g. alcohol-free beers) and the marketing of innovative products
(e.g. Paulaner Weißbier Zitrone Alkoholfrei and Mönchshof Natur Radler). The market share of our group in southern
Germany (Bavaria, Baden-Württemberg, Hesse and Saxony) increased by 0.4 % to 12.5 %.
In international terms, Brau Holding International GmbH & Co. KGaA succeeded for the first time in passing the one
million hL mark in beer exports with a 9.7 % increase in sales, the high-priced premium beer segment being the main
focus of attention.
Sales of home-manufactured beer totaled 5.449 million hL (previous year: 5.343 million hL) in the year under review. Of this total, the Paulaner Brewery Group accounted for 2.954 million hL (previous year: 2.852 million hL)
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while Kulmbacher accounted for 1.889 million hL (previous year: 1.874 million hL). Sales revenues of BHI including
home-manufactured alcohol-free beverages amounted to 6.237 million hL (previous year: 6.133 million hL). Of this
total, Paulaner Brauerei GmbH & Co. KG accounted for 3.099 million hL (previous year: 2.987 million hL), while
Kulmbacher Brauerei AG accounted for 2.530 million hL (previous year: 2.527 million hL) and Südwest Group for
617,000 hL (previous year: 630,000 hL).
In the 2012 business year, 23 breweries worldwide were operating under the Paulaner brand name. Plans exist to drive
this expansion by establishing additional Paulaner brewhouses on foreign soil in the coming years.
Approved by shareholders at the end of 2011, plans to redevelop the major Paulaner brewery complex on the outskirts
of Munich are progressing on schedule. Preparatory construction measures involving an initial investment of some
EUR 300 million have already commenced at the Munich-Langwied site.
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2.2.3 Hotels
Arabella Hospitality SE is the central holding company of the Hotels division. It maintains all the group’s German
hotels, determines its strategic focus, and controls cash flows. It is also indirectly the sole shareholder of Arabella
Hoteles e Inversiones de España S.A., Spain, and the sole shareholder of Arabella Hotelbetriebe AG, Switzerland.
On 17 August 2011, Arabella Hospitality SE and Schörghuber Stiftung & Co. Holding KG signed a five-year profit and
loss transfer agreement with retroactive effect from 1 January 2011.
With effect from 1 July 2011, the joint venture agreement with Starwood Hotels & Resorts Worldwide, Inc. was dissolved and replaced by separate management contracts for the hotels leased and owned by the company. With that,
Starwood Hotels & Resorts Worldwide, Inc. became directly responsible for the management of all hotel operations
with the exception of the Arabella Alpenhotel am Spitzingsee and the Arabella Brauneck Hotel, both of which report
directly to the management of Arabella Hospitality SE. The erstwhile joint venture company ArabellaSheraton Hotelmanagement GmbH was renamed ASH Hotels & Resorts GmbH and is now in liquidation
Brau Holding International GmbH & Co. KGaA succeeded in increasing revenues in the 2012 business year by 2.2 %
from EUR 588.4 million to EUR 601.5 million. Of this total (all figures before consolidation), the Paulaner Brewery
Group accounted for EUR 300.7 million (previous year: EUR 279.6 million), while the Kulmbacher Group accounted
for EUR 212.7 million (previous year: EUR 212.0 million) and the Südwest Group for EUR 92.7 million (previous
year: EUR 101.8 million).
Adjusted for special effects arising from extraordinary write-downs, consolidated EBIT amounted to EUR 35.5 million
(previous year: EUR 37.2 million). After adjustment, consolidated EBITDA amounted to EUR 79.5 million (previous
year: EUR 80.1 million).
Brau Holding International GmbH & Co. KGaA generated a consolidated result before minority interests of EUR 20.6
million (previous year: EUR 13.4 million), while cash flow from operating activities amounted to EUR 78.9 million
(previous year: EUR 77.0 million) and cash flow from investments was EUR –42.0 million (previous year: –33.0 million). At EUR 36.9 million, free cash flow was below the previous year’s level (EUR 44.5 million).
Total balance sheet assets rose slightly by EUR 4.0 million to EUR 595.0 million in the year under review. Non-current
assets accounted for 64.7 % of total assets (previous year: 65.4 %), while the consolidated equity ratio was 38.3 %
(previous year: 36.6 %).
Revenue and earnings for the German hotel industry maintained an upwards path in 2012 – albeit at a relatively low
level by international comparison. RevPar (revenue per available room) increased by 5.7 %, while average occupancy
and the average room price rose by 2.2 % and 3.4 %. With a price rise of 11.5 % and a RevPar of EUR 92.03, Munich
was once again Germany’s most lucrative city for the hotel trade.
The Mallorcan hotel market experienced a negative winter season – largely due to the considerable reduction in the
number of flights to and from the island in the off season – and a strong summer season. The Swiss hotel market –
especially in the tourist centers – continues to suffer from the strength of the Swiss franc.
Customers tend to book at extremely short notice and stay for even shorter periods. Bookings are increasingly made
via online portals rather than directly or via travel agencies, and this is serving to intensify price pressure and increase
distribution costs.
2.2.2.5 Forecast
A change in trend is not in the offing for the German beer market in 2013. With volume growth contracting somewhat
on the whole, 2013 will see the fierce price and cutthroat competition continue as before, with a high proportion of
beers – notably quality brands – being sold at even lower special-offer prices. At the same time, production costs are set
to increase (e.g. increase in electricity prices due to the EEG levy, increases in the price of malt, rise in human resource
costs). The fierce competition will make it difficult to push through price increases in the hope of offsetting the rising
costs. In spite of the general trend, however, Brau Holding International GmbH & Co. KGaA does harbor growth potential in the German market, especially given its sales focus on southern Germany, strong position in what is still a highly
attractive wheat-beer segment, excellent regional specialties and innovative product range. In the international markets
too, Brau Holding International GmbH & Co. KGaA intends to capitalize on its position as one of Germany’s leading
exporters of premium brand beers in the high-price segment. It also wants to bolster its international collaboration with
partners Heineken International B.V. In the light of continuing fierce competition on the sales side and the fact that
it will be possible to offset cost increases on the production side only partially via price adjustments, we expect Brau
Holding International GmbH & Co. KGaA to post only a slight increase in revenues in 2013.
At EUR 95.89, RevPar of the hotels maintained by Arabella Hospitality SE was EUR 2.62 higher than in the previous year. The average room price was EUR 139.69, and thus EUR 3.41 above the previous year’s value. As before,
Germany’s key performance indicators are among the lowest in Europe. Whereas at EUR 84.06, average RevPar in
Germany was EUR 2.53 above the previous year’s level, our foreign hotels generated RevPar of EUR 174.36, an
increase of EUR 3.29 year on year.
A cause for concern remains the GOP of 28.4 % for our hotels. However, when adjusted for the sale of two hotels in the
previous year for comparison purposes, we did manage to improve the GOP figure by 0.1 % in the year under review. Above
all, leased hotels whose contracts are not set to expire until between 2016 and 2018, are tending to impact the result.
Phase II of the project to renovate the rooms in the Sheraton Hannover Pelikan Hotel was completed on time. Other
large-scale investments included completion of the work to refurbish the lobby of the Sheraton München Arabella
park Hotel and the conference center of The Westin Grand Frankfurt. The planning phase for the ground-up
renovation of the Sheraton Mallorca Arabella Golf Hotel was concluded. Work commenced on time in January 2013
and should be completed in September 2013.
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According to the latest information, the Elbe Philharmonic Concert Hall in Hamburg, which was originally due to open
in 2010, will now not be opening its doors until October 2016 and this will give rise to a corresponding delay in the
opening of the hotel we are leasing at the location.
2012 also saw long-term leasing agreements concluded for two new hotels in Munich and Stuttgart, both of which will
belong to the group in the future. These hotels are to be included in the management agreement with Starwood Hotels
& Resorts Worldwide, Inc. and be operated under the Aloft brand. The hotels are set to open their doors in 2015.
The subgroup reported revenues of EUR 215.8 million in 2012 (previous year: EUR 216.6 million). Earnings after
taxes (before minority interests and transfer of profits) stood at EUR – 3.0 million (previous year: EUR 3.7 million).
This figure includes earnings from discontinued business activities in South Africa (sale of our business operation in
that country) amounting to EUR 12.9 million. Cash flow from operating activities of EUR 5.6 million (previous year:
EUR – 6.7 million) was disclosed. Operating cash flow less investments and disinvestments amounted to EUR 0.2 million for the business year just concluded (previous year: EUR 61.1 million). The disinvestments involved the sale of
participating interests. In the previous year, the disinvestments mainly involved the sale of two hotels in South Africa
and one hotel in Germany. The consolidated EBIT stood at EUR – 0.2 million (previous year: EUR – 6.3 million), while
the consolidated EBITDA amounted to EUR 14.7 million (previous year: EUR 8.5 million).
Total balance sheet assets at the end of the business year stood at EUR 273.2 million (previous year: EUR 298.8 million). Non-current assets accounted for EUR 172.7 million (previous year: EUR 175.6 million) of this sum. After
transfer of the net loss from the profit and loss transfer agreement, the equity ratio was 56.7 % (previous year: 51.8 %).
2.2.3.5 Forecast
The German hotel market is expecting only a modest increase in revenues in 2013 compared with the previous business year. While Munich looks set to profit from the BAUMA 2013 conference taking place in the city, Frankfurt is
expecting the market to consolidate somewhat after the major increase in the number of available rooms in 2011/2012.
Given these forecasts for the markets, we are expecting moderate growth in terms of sales and operating income for
the next two years. Given that our Sheraton Mallorca Arabella Golf Hotel will be closed for eight months, it will be
difficult to maintain revenues at a consistent level there, despite our efforts to offer guests an attractive alternative at
our two other hotels on the island.
All told, we are expecting to post slightly higher revenues in 2013 compared with those generated in the reporting year.
2.2.4 Seafood
The Seafood division is consolidated in the Chilean financial holding, Inversiones Stefal SpA. Inversiones Stefal SpA
is the parent company of Productos del Mar Ventisqueros S. A., the operating company responsible for fish farming and
processing, of Alimentos Bahia Chincui S.A., the holder of licenses used by Ventisqueros, and of Inmobiliaria Aleste
Ltda, a former property developer that is now being wound up having sold off all its properties.
The sole active company, Productos del Mar Ventisqueros S.A., is managed according to Chilean law by a six-strong
management board comprising three German representatives of Schörghuber Stiftung & Co. Holding KG and three
external Chilean board members.
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The previous CEO left the company at the end of August 2012. Cristián Swett joined the company as its new CEO on
1 October 2012. The current CFO, Roberto Tapia, will be leaving the company at his own request at the end of April
2013. Until a new CFO is found, Cristián Swett will assume these duties on an interim basis.
The growth in the volume of salmon products continued unabated in 2012, with Atlantic salmon (Salmo Salar) recording a 20 % increase on the previous year. This means that since 2010, the global volume has increased by 500,000 tons
to 1,900,000 tons. At 307,000 tons, the volume of Atlantic salmon exported by Chile increased by 65 % compared with
the previous year’s value. This extreme rise in volume had been triggered by the preceding ISA crisis in Chile, which
had led to a virtual production stop for Salar in 2009 and 2010. Norway used the period to adjust its production volumes accordingly, at the same time managing to command high prices for its stocks. The sudden oversupply – which
exceeded by far average annual sales growth of 6 – 8 % – saw prices slump by as much as 50 % in 2012. Selling prices
were well below production costs. The market hit rock bottom in November 2012.
The noticeable slow-down in Norwegian salmon production at the end of the year promptly triggered a 6 – 7 % rise in
the spot prices for Salar salmon in December 2012. One explanation for this development was that the low prices had
opened up the market to new categories of buyer, which in turn led to higher sale volumes. A comparable trend had
been seen in earlier periods. This positive price development has yet to affect the other two species of salmon, namely
Coho and Trout.
It is to be assumed that added demand has gradually compensated for the oversupply of 2013 and that, by and large,
prices will stabilize again in the second half of the year. That said, we are expecting prices to rise significantly in the
coming years.
Short-term adjustments to our medium-term plans in response to last year’s price slump are neither feasible nor appropriate. For this reason, we aim to adhere to our target of a total production volume of between 40,000 and 50,000 tons.
We do, however, intend to modify the share of the various species in the overall production volume. The original plan
was to divide the volume into three equal parts. However, in order to provide a continuous supply of Atlantic salmon
(Salmo Salar) – this so that we can sell our produce also directly to major retail chains – we intend to increase the share
of Salar salmon to 50 % of total production to the detriment of the two other species. This has the added advantage that
overall processing capacities will be utilized more evenly and that Salar salmon will now be sold as a fresh product,
providing us with a continuous cash flow.
However, our existing freshwater and saltwater breeding capacity is not sufficient to achieve this aim, especially if the
leaseholds on existing freshwater farms and saltwater licenses are not renewed. The negotiations conducted in 2012
to purchase additional licenses were not successful. Negotiations are currently again underway with a competitor with
the aim of buying up unused capacity.
The construction of a land-based freshwater farm (Chaqueihua II) – mainly for the farming of Salar salmon – with
capacity for up to four million fish was largely completed in the year under review.
The revenues disclosed in the consolidated financial statement of Schörghuber Stiftung & Co. Holding KG were earned
solely by Ventisqueros. In 2011 they relate only to the second half of the year and were measured at the time of initial
recognition using IFRS standards. For this reason, the prior year figures are comparable only to a limited extent.
In the year under review, Ventisqueros produced WFE 26,534 tons (WFE = whole fish equivalents) of salmon, of which
WFE 7,266 tons were of the Salar, WFE 8,083 tons of the Coho, and WFE 11,185 tons of the trout species. This fell
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just short of the target harvested volume. The main reason for the shortfall was that part of the Coho harvest was held
back until 2013 in order to achieve higher weights at sale. Ventisqueros was hit particularly hard by the price collapse,
as much of the fish was harvested at the end of the year when prices were at their lowest.
Of the total accrued sales volume of WFE 22,600 tons, 50 % was marketed as value-added products, and this applies
in particular to the trout variety. This species accounted for 45 % of the sales volume, the remainder being apportioned
equally between Coho and Salar.
In order to improve results, contract processing business was pushed. All told, we processed WFE 25,700 tons of salmon for third-party suppliers. In order to safeguard liquidity, we renegotiated payment objectives with our feed suppliers.
Income in the year under review was significantly affected by the major slump in prices in the course of the year. In the
business year under review, the company’s earnings amounted to EUR 81.1 million (previous year: EUR 39.5 million).
The operating income disclosed amounted to EUR – 35.3 million (previous year: EUR 2.2 million). Earnings before tax
stood at EUR – 37.8 million (previous year: EUR – 0.3 million), EUR – 14.4 million of which is attributable to the fairvalue measurement at the end of the year. Cash flow from operating activities amounted to EUR – 17.3 million (previous
year: EUR – 18.6 million). All prior-year benchmark values relate to the period 1 July through 31 December 2011.
The growth strategy and resulting expansion in capacity and fish stocks saw total assets on the subgroup’s balance sheet
rise from EUR 180.8 million to EUR 187.8 million as planned. The equity ratio stood at of 43.4 % (previous year: 48.5 %).
2.2.4.5 Forecast
In 2013 too, the company will be relying on cash flows from Germany to finance growth and absorb accrued losses.
Should the option of acquiring additional breeding capacity materialize, we will adjust our means accordingly.
In anticipation of a rise in prices and the planned harvested volume for 2013, we are looking at sales revenues of
between EUR 120 million and EUR 130 million.
3 Earnings, assets and financial position
3.3 Financial position
The cash flow from business operations in 2012 amounted to EUR 20.5 million after EUR 59.9 million in the previous
year. At the end of the period under review, cash and cash equivalents (cash funds) amounted to EUR 100.0 million
(previous year: EUR 290.5 million) and comprise funds of EUR 0 million (previous year: EUR 15.1 million) from
discontinued business activities.
3.4 Assets
Total balance-sheet assets increased by 3.5 % to EUR 3,147 million. Non-current assets accounted for 84.0 % (previous year:
78.5 %) of the total assets. The non-current assets of EUR 2,642.5 million (previous year: EUR 2,386.7 million) mainly consist of fixed assets and property held for investment purposes. Inventories amounted to 10.0 % (previous year: 8.6 %) of total
balance-sheet assets. The equity ratio stood at 41.6 % (previous year: 41.4 %) of total balance-sheet assets. Non-current liabilities accounted for 40.7 % (EUR 1,279.7 million) of the balance sheet, up from 34.2 % (1,040.2 million) in the previous year.
3.1 Background
4 Events after the balance-sheet date
IASB pronouncements made during the 2008 business year clarified that minority interests in fully consolidated
German partnerships must be treated as debt (liabilities) within the group (IAS 32). By the same token, interests held
by outside shareholders must be disclosed at fair value under “other liabilities”.
Since Beverages is run as a fully operational division rather than as a financial investment, the result of companies
measured at equity is shown in the operating result.
No other events of particular significance occurred after the end of the business year.
3.2 Earnings
Incorporation of the Seafood division on 1 July 2011 means that all prior-year figures are comparable only to a limited
degree. Consolidated sales revenues increased from EUR 467.8 million in the previous year to EUR 672.7 million.
The Construction & Real Estate division accounted for EUR 388.8 million of this total, Hotels EUR 215.8 million and
Seafood EUR 81.1 million (figures before consolidation).
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Gross profit on sales increased accordingly from EUR 112.2 million to EUR 152.9 million, while distribution and
administration costs amounted to EUR 80.4 million (previous year: EUR 70.4 million). As in the previous year, the
balance of other operating income and expenses was positive, and stood at EUR 41.2 million (previous year: EUR
124.0 million). This item was influenced largely by the revaluation of investment property at fair value. The unrealized change in market values amounted to EUR 38.1 million in the business year under review, after a change of EUR
120.3 million in the previous year. In addition, the figures for “other operating income and other operating expenses”
include exchange rate fluctuations, the results of the sale of shares, as well as the results of the disposal of fixed assets
and amortization of goodwill and cash-generating units.
At EUR –70.1 million, the financial result was up EUR 8.1 million on the figure for the previous year.
The consolidated result for the 2012 business year totaled EUR 58.9 million (previous year: EUR 104.3 million), of
which EUR 1.1 million (previous year: EUR 10.9 million) can be attributed to discontinued business activities.
The consolidated EBIT amounted to EUR 131.3 million (previous year: EUR 175.0 million). The consolidated EBITDA amounted to EUR 124.1 million (previous year: EUR 91.7 million).
5 Financial instruments and risk management
The Schörghuber Corporate Group operates in various sectors of industry and markets. The many opportunities this
provides are, however, inextricably linked to certain economic risks. Our aim is to avoid or mitigate these risks in order
to remove the potential for financial losses impacting on the group. At the same time, opportunities can arise as a result
of a change in general business conditions, and the company will attempt to exploit these new criteria in an effort to
bolster its position among the competition. Entrepreneurial risks are accepted only where they serve to enhance the
company’s value, and the potential consequences remain manageable. For this reason, risk management is an integral
component of group management. To this end, group-wide risk management systems spanning all the main subsidiaries
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have been put in place in order to identify, monitor and control risks. In addition, a reporting and early-warning system
is regularly updated, verified and adjusted to ensure that the information required by group management to identify
even decentralized risks in good time is always available.
Due to the nature of the business conducted by the individual divisions, the group is affected in different ways by the
general economic climate. Although fluctuations in the economy do influence the group’s earnings situation, its diversified structure means that not all divisions are affected at the same time and with the same intensity.
Central coordination and control of financial management by Schörghuber Corporate Finance GmbH aims to optimize
the financial structure of the group as a whole and of its individual companies. It includes the areas of corporate financing, management of the risks inherent in interest rates, foreign currencies, liquidity and credit rating, and definition of
banking policies and bank management.
In the course of its business operations and on account of the financial instruments it uses, the group faces various kinds of
risk. These include market risks (pricing risks), and credit and liquidity risks. Financial instruments include financial assets and liabilities, as well as contractual entitlements and liabilities relating to the exchange or transfer of financial assets.
Primary financial instruments on the assets side of the balance sheet include liquid assets, trade receivables and financial
investments, while on the liabilities side, financial instruments include liabilities to banks, trade payables and other
liabilities. Market risks affecting the group mainly concern the risks pertaining to fluctuations in interest rates and foreign
currency exchange rates. Where variable interest rates have been agreed for trade payables and bank loans, there exists
the possibility that interest rates will rise as well as fall, leading to higher interest payments and charges.
Changes to the market interest rate applicable to fixed-interest, primary financial instruments are recognized in profit and
loss only if the instruments are carried at fair value. Thus, all fixed-interest financial instruments carried at amortized cost
are not subject to interest rate risks within the meaning of IFRS 7. The pricing risks pertaining to the loans portfolio are
determined with the aid of a risk assessment system on the basis of current interest rates.
Various measures are taken to limit risk, such as separating trading, administration, accounts and control processes in the
organizational sense, and ongoing reporting of relevant events on the basis of market values and interest risks within the
framework of the risk management system. Furthermore, we limit interest rate risks to some degree by conducting hedging transactions. Based on an assessment of the risk, select derivative instruments are used as well.
The international focus of our business activities calls for service transactions and cash flows to be effected in foreign
currencies. This gives rise to a certain risk of loss because assets held in a foreign currency will lose value as the exchange
rate falls, while liabilities payable in a foreign currency become more expensive as the rate increases. Group business in
countries outside the eurozone is kept to a minimum and this has a corresponding effect on the currency risk. In addition,
we regularly evaluate our net exposure to currency risk, the aim being to maintain a balance between income and expenditure in any foreign currency and thus to minimize the effect of any fluctuations in exchange rates. Where necessary, we
use suitable derivative financial instruments to hedge currency risks.
Generally, however, derivative financial instruments are used exclusively for hedging purposes in the context of interest rate and currency management, not for trading or speculative purposes. To reduce the risk of counterparty default, we close transactions with select banks only. With regard to interest rate risks, please refer to the information
on interest payments and the analysis of sensitivity to interest rate changes contained in Section II.B.20 “Financial
instruments” of the Notes to the Consolidated Financial Statement. As the lion’s share of our business is transacted in
eurozone countries, the exchange rate risk is insignificant.
Credit risk relates to the potential for debtor default and any deterioration in credit worthiness (downgrading). The
group limits this risk by placing high demands on the solvency of its counterparties. Outstanding trade balances are
monitored continuously on a decentralized basis, while potential default risks are accounted for by both individual and
generalized value adjustments. The maximum default risk relates to receivables and financial assets and corresponds
to the carrying amounts in the balance sheet of these instruments.
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As well as financial planning based on a horizon of several years, the group deploys a rolling system of liquidity planning to ensure that cash flows are permanently aligned to outstanding payments in any given period. What is more,
prudent liquidity management ensures that the group has adequate credit lines at its disposal to meet unexpected payment obligations at any time.
6 Forecast
Growth in GDP in Germany is expected to be much lower in 2013 than in the previous year, the estimates being + 0.5 %
to + 0.7 %. In spite of the euro crisis, the general economic climate in Germany has remained remarkably stable, although exports have declined somewhat.
With the ECB showing no sign of increasing interest rates and having provided the banks with adequate liquidity, it is unlikely that we will see a rise in the cost of borrowing in the medium term. Even if the rise in prices in the real estate market
has slowed considerably (with prices remaining high), we expect demand for residential property – principally multi-floor
residential buildings (condominiums) in Germany’s key metropolitan areas – to remain stable. However, demand for luxury
property appears to be reaching the point of saturation. As before, the city of Munich stands to profit more than most from
the ongoing boom in the real estate market, and this applies to the areas of project development and existing real estate. The
coming years are expected to provide us with stable revenues from leased property, be it commercial or residential.
In the field of beverages, we expect the earnings situation to stabilize, albeit without any significant recovery in price
levels in the short term. The same applies to the hotels market, where pre-existing leasehold agreements are expected
to burden our account with negative operating results in the coming two years. By contrast, the Seafood division does
harbor potential for improvement; indeed, after a phase of consolidation in 2013, 2014 looks set to herald a period of
marked growth in both revenues and profits.
All in all, we are predicting a slight rise in consolidated revenues for the group in 2013 and, with regard to 2013 and
2014, a consolidated result at least on a par with that of the previous business year.
With the euro crisis unresolved and an accurate prediction of the enduring availability of suitable credit lines thus
impossible, securing adequate reserves of liquidity will remain top priority for the time being. Appropriate measures
have already been put in place.
Munich, 19 April 2013
The General Partner
Josef Schörghuber Stiftung, Munich
Dr. Klaus N. Naeve
Christoph Michl
Roland Tobias
41
Consolidated Financial Statement I 2012
2012 Consolidated
Financial Statement
Consolidated statement of recognized income and expenses
Consolidated income statement
Sales revenue
Cost of sales
Notes
2012
2011
II.A.1
TEUR
672,716
– 519,784
TEUR
467,766
– 355,588
152,932
112,178
II.A.2
Gross profit on sales
2011
Net profit after taxes
TEUR
58,853
TEUR
104,340
Exchange differences on translation of foreign
operations
– 2,547
674
– 684
254
24
– 295
309
188
– 2,668
56,185
591
104,931
– 218
– 65
56,403
104,996
Distribution costs
II.A.3
– 36,649
– 33,768
Administration costs
Other operating income
Other operating expenses
Income from equity-accounted interests
II.A.4
– 43,715
51,480
– 10,253
17,534
– 36,669
141,889
– 17,844
9,188
Operating income
131,329
174,974
Other financial income
Other financial expenses
2,484
– 72,544
3,187
– 81,359
Of which attributable to non-controlling interests
– 70,060
– 78,172
Of which attributable to shareholders of the parent company
61,269
96,802
II.A.9
– 3,491
57,778
– 3,361
93,441
II.A.10
1,075
10,899
58,853
104,340
Financial result
II.A.5
II.A.6
II.A.7
II.A.8
Profit before taxes
Income tax expenses
Income from ongoing operations after tax
Income from discontinued operations
42
2012
II.A.11
– 218
– 65
59,071
104,405
Other changes from at-equity accounting not
recognized in income
Gains on cash-flow hedges
Deferred taxes from cash-flow hedges offset
directly against equity
Income recognized directly in equity
Comprehensive income after taxes
43
Consolidated balance sheet
Consolidated cash-flow statement
Notes
Assets
Intangible assets
Tangible assets
Investment property
Equity-accounted participating interests
Other financial assets
Deferred tax assets
Inventories
Other non-current receivables and assets
II.B.1
II.B.2
II.B.3
II.B.4
II.B.5
II.B.6
II.B.7
II.B.10
Non-current assets
2012
2011
TEUR
13,086
440,009
2,002,796
145,676
701
28,598
5,490
6,117
TEUR
13,388
435,756
1,750,227
135,081
1,766
30,731
9,693
10,038
2,642,473
2.386.680
Inventories
II.B.7
313,646
261,201
Trade-account receivables
Tax refund claims
Other current receivables and assets
Cash and cash equivalents
Assets held for sale
Current assets
II.B.8
41,071
555
32,206
99,961
17,507
504,946
3,147,419
40,002
973
15,844
275,376
59,771
653,167
3,039,847
2012
2011
TEUR
92,033
1,216,553
139
TEUR
92,033
1,167,385
365
II.B.9
II.B.10
II.B.11
II.A.10
Notes
Liabilities
Limited partners’ capital
Provisions
Shares of other shareholders
Equity
II.B.12
1,308,725
1,259,783
Non-current financial liabilities
II.B.15
1,183,852
960.675
Deferred tax liabilities
Other non-current liabilities
Provisions for pensions
Other non-current provisions
II.B.13
4,183
39,246
45,331
7,129
12,240
12,036
45,315
9,886
1,279,741
1,040,152
II.B.18
II.B.14
II.B.19
Long-term debt
2012
2011
TEUR
TEUR
110,577
– 58,046
2,466
– 1,144
5,000
151,173
– 53,546
2,058
– 2,851
7,506
58,853
104,340
Write-downs / write-ups on investments
– 7,263
– 85,163
Change in long-term provisions
Other non-cash-effective expenses and income
Deferred tax income and expenses
Gains / losses from the disposal of assets
– 9,040
14,388
– 7,917
– 1,892
– 16,533
– 261
– 2,184
13,956
5,742
– 5,273
6,629
– 39,026
5,825
– 74,617
Cash flow from business operations*
20,474
– 59,910
Outflow for investments in intangible assets
– 2,390
– 2,455
– 254,766
– 68,938
– 156
– 52
17,976
76,393
434
5,311
145,562
47
– 233,591
150,557
– 6,515
– 26,670
66,860
– 37,080
9,186
– 3,310
23,265
– 20,794
– 189,852
69,853
– 660
5,456
290,473
99,961
215,164
290,473
Result for the year before cash flows from interest, income tax and
dividend payouts by associates
Interest paid
Interest received
Income tax paid
Dividend payouts by associates
Gains / losses from the disposal of
discontinued operations
Portfolio management expenses
Change in net working capital
Outflow for investments in tangible assets and investment
property
Outflow for investments in financial assets
Inflow from assets held for sale and discontinued
operations
Inflow from the disposal of intangible assets
Inflow from the disposal of financial assets
Cash flow from investments*
Payments to company owners and minority shareholders
Change in financial liabilities
Change in accounts receivable from / payable to shareholders
Cash flow from financing operations*
Current financial liabilities
II.B.15
151,888
308,910
Trade-account payables
Income taxes
Other current liabilities
Other current provisions
Liabilities held for sale
II.B.16
81,452
8,976
257,070
54,125
5,442
46,894
2,126
310,030
51,904
20,048
558,953
739,912
1,838,694
3,147,419
1,780,064
3,039,847
Short-term debt
Borrowed capital
44
II.B.17
II.B.18
II.B.19
II.A.10
Cash-flow-effective change in funds
Exchange rate- and consolidation scope-related changes
in funds
Funds at the start of the reporting period
Funds at the end of the reporting period*
*The break-down of funds and cash flow into ongoing and discontinued business operations is explained in section II.C of the Notes.
45
Development of consolidated equity from 1 January 2011 to 31 December 2012
As at 01.01.2011
Limited
partners’
capital
Foreign
currency
translation
Cash-flow
hedges
Provisions
for other
changes not
recognized in
income
Other
provisions
Total
provisions
Share of
equity of the
parent
company
Share of
equity of
non-controlling
interests
Consolidated
equity
TEUR
TEUR
TEUR
TEUR
TEUR
TEUR
TEUR
TEUR
TEUR
92,033
4,035
– 2,108
– 67
1,095,846
1,097,706
1,189,739
1,319
1,191,058
674
– 107
24
104,405
104,996
104,996
– 65
104,931
–
–
–
– 3,416
– 3,416
– 3,416
Transfers to provisions
Capital repayments, dividend payouts
– 3,416
–
Capital increases
–
–
–
Other changes not recognized in income
–
–
–
– 31,901
– 31,901
– 31,901
– 889
– 32,790
Other participatory relationships
As at 31.12.2011
92,033
4,709
– 2,215
– 43
1,164,934
1,167,385
1,259,418
365
1,259,783
–
– 2,547
357
– 478
59,071
56,403
56,403
– 218
56,185
–
–
–
– 6,515
– 6,515
– 6,515
–
–
–
– 720
– 720
– 720
–
–
1,216,770
1,216,553
1,308,586
Transfers to provisions
Capital repayments, dividend payouts
Capital increases
– 6,515
– Other changes not recognized in income
Other participatory relationships
As at 31.12.2012
46
– 92,033
2,162
– 1,858
– 521
– 8
– 728
139
1,308,725
–
47
Notes to the Consolidated Financial Statement | 2012
Notes to the
Consolidated Financial
Statement for 2012
I. General information
A. Basis of preparation
Schörghuber Stiftung & Co. Holding KG (SHKG), the head office of which is located at Denninger Strasse 165, 81925
Munich, Germany, is the holding company for the Schörghuber Corporate Group, which operates a number of different
business divisions.
In the Hotels division, Arabella Hospitality SE (AHSE) has been the main holding company since 1 September 2011.
AHSE determines the strategic focus of the division and controls its cash flows on a central basis. It operates, either
directly or indirectly, virtually all the group’s hotels in Germany, Switzerland and on Mallorca. On 17 August 2011,
Arabella Hospitality SE and Schörghuber Stiftung & Co. Holding KG signed a five-year profit and loss transfer agreement with retroactive effect from 1 January 2011.
Brau Holding International GmbH & Co. KGaA (BHI) is the intermediate holding company for the Beverages division
and the joint-venture company in the partnership with Heineken International B.V. BHI holds participating interests
in, among others, the Paulaner, Kulmbacher, Würzburger Hofbräu, Fürstenberg and Hoepfner breweries. 50 % of the
shares in Paulaner are held directly by SHKG via another subsidiary.
Brau Holding International GmbH & Co. KGaA is carried at equity in the consolidated financial statements of SHKG.
The Construction & Real Estate division is managed under the umbrella of Bayerische Hausbau GmbH & Co. KG
(BHGKG). The lion’s share of the group’s real estate property portfolio is managed via the direct participating interest
in Bayerische Hausbau Immobilien GmbH & Co. KG, while project development activities (national and international), construction of prefabricated homes and real estate management are operated via stakes held in Bayerische
Hausbau Projektentwicklung GmbH, Bayerische Hausbau International GmbH, Hanse Haus GmbH and Bayerische
Hausbau Immobilien Management GmbH.
48
As of 1 July 2011, the Seafood division was incorporated in the Schörghuber Corporate Group and its figures consolidated in those of the Inversiones Stefal SpA financial holding, Chile (Stefal). This subgroup is involved mainly in the
production and processing of Atlantic and Pacific salmon, as well as salmon trout. The operational side of this business
is run by Productos del Mar Ventisqueros S.A. (Ventisqueros).
In 2010, the executive board and the foundation board decided to discontinue aircraft leasing - consolidated as Bavaria
International Aircraft Leasing GmbH & Co. KG (BIAL) – as a strategic business division, as it was considered that the
changed market conditions no longer offered BIAL, a niche provider, adequate scope in which to generate sustained
earnings potential given the inherent risk. Last year, the management succeeded in selling off 11 of the 15 aircraft
available for sale, a further two being sold this year. Since 2011, the division has been disclosed on the balance sheet
as a discontinued operation in accordance with IFRS 5.
SHKG prepared its consolidated financial statement for the period up to 31 December 2012 in accordance with section
315 a of the German Commercial Code (HGB) and in compliance with International Financial Reporting Standards
(IFRS) and the International Financial Reporting Interpretations Committee (IFRIC), as applicable in the EU.
All provisions of the International Accounting Standards Board (IASB) mandatory on 31 December 2012 were complied with, as applicable in the EU. In addition, all mandatory regulations set down in commercial law were observed.
The figures for the previous year were determined according to the same principle.
The consolidated financial statement was drawn up in thousands of euros (TEUR). The income statement (profit &
loss) was drawn up using the cost-of-sales method.
The consolidated financial statement is a true and fair view of the earnings, assets, and financial position of the SHKG group.
The standards and amendments to standards listed in the following became mandatory for the first time during the 2012
financial year.
■■ Amendment to IFRS 1 “First-time adoption of International Financial Reporting Standards”
(changes concerning fixed dates relating to the derecognition exception; changes with regard to hyperinflation)
■■ Amendment to IAS 12 “Income taxes” (changes with regard to the recovery of underlying assets)
■■ Amendment to IFRS 7 “Financial instruments: Disclosures”
(changes to improve disclosures concerning the transfer of financial assets and liabilities)
The new regulations had no significant effect on how the group’s earnings, assets and financial position are presented.
Voluntary early application of the standards did not take place.
In addition, the following standards or amendments to standards are applicable to annual periods beginning on or after
1 January 2013.
■■ Amendment to IFRS 7 “Financial instruments: Disclosures”
(changes to improve disclosures concerning the offsetting of financial assets and liabilities)
■■ IFRS 10 “Consolidated Financial Statements”
■■ IFRS 11 “Joint Arrangements”
■■ IFRS 12 “Disclosure of Interests in Other Entities”
■■ IFRS 13 “Fair Value Measurement”
■■ Amendment to IAS 1 “Presentation of Financial Statements”
(changes with regard to the presentation of other comprehensive income; changes as a result of the Annual
Improvements, 2009–2011 Cycle: Classification of comparable information)
49
■■ IAS 16 “Property, Plant and Equipment”
(changes as a result of the Annual Improvements, 2009–2011 Cycle: Classification of servicing equipment)
■■ Amendment to IAS 19 “Employee Benefits”
(changes are the results of projects on short-term employee benefits and post-employment benefits)
■■ IAS 27 “Separate Financial Statements”
(consolidation provisions previously contained here have been transferred to IFRS 10)
■■ IAS 28 “Investments in Associates” (replaces the previous version)
■■ IAS 32 “Property, Plant and Equipment”
(changes as a result of the Annual Improvements, 2009–2011 Cycle: Income tax implications
of dividend payouts to owners)
■■ IAS 34 “Interim Financial Reporting”
(changes as a result of the Annual Improvements, 2009–2011 Cycle: Interim reporting of segment assets)
■■ IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine”
Application of IFRS 7 will necessitate extensions to the notes to the consolidated financial statements with regard
to the transfer of assets and the offsetting of financial instruments. Application of IFRS 9 will affect how financial
assets and liabilities are disclosed and how changes in the fair value of certain financial instruments are carried.
How presentation of the group’s earnings, assets and financial position will be affected is currently under review.
IFRS 12 and 13 will broaden the scope of the information contained in the Notes, while IAS 1 will alter how the
group’s other comprehensive income is presented. The amendments to IAS 19 and the concomitant elimination of
the corridor method are applicable on a retrospective basis, in accordance with IAS 8, to annual periods beginning
on or after 1 January 2013. Essentially, differences between the pension liability entered on the balance sheet and
the actual pension payable (recognized in the form of actuarial gains and losses, as set out under II.B.14) are no
longer admissible from 1 January 2013 onwards. The effect of this amendment on group equity including companies
measured at equity amounted to TEUR – 22,729 at 31 December 2012 and TEUR – 3,236 at 31 December 2011.
The other new regulations have little or no effect on the consolidated financial statement or are not relevant to SHKG.
Voluntary early application of the standards will not take place.
In addition, the following standards or amendments to standards have been published but have yet to be recognized
by the EU.
■■ Amendment to IFRS 1 “First-time adoption of International Financial Reporting Standards” (changes with regard
to the accounting of government loans with a below-market rate of interest; changes as a result of the Annual
Improvements, 2009–2011 Cycle: Repeated application, borrowing costs)
■■ IFRS 9 “Financial Instruments”
■■ Improvements to the International Financial Reporting Standards (May 2012)
■■ Amendment to IFRS 9 and IFRS 7 (new mandatory effective date and transition disclosures)
■■ Amendments to IFRS 10, IFRS 11 and IFRS 12 (transition provisions)
■■ Amendments to IFRS 10, IFRS 11 and IFRS 12 (investment companies)
■■ Amendment to IAS 32 “Financial instruments: Presentation”
(changes to improve disclosures concerning the offsetting of financial assets and liabilities)
Voluntary early application of the standards will not take place.
50
B. Consolidated group and consolidation principles
1. Consolidated group
In addition to the parent company itself, the consolidated financial statement includes all significant companies
over whose business and financial policies SHKG may exert control, either directly or indirectly. Companies whose
business and financial decisions are significantly influenced, either directly or indirectly, by SHKG (associates) are
accounted for using the equity method.
Subsidiaries whose business is dormant or of low volume, and which are insignificant in terms of presenting a true
and fair view of the earnings, assets, and financial position of the group, are not consolidated. They are carried in the
consolidated financial statement at their respective acquisition cost or current market value, whichever is the lower.
The consolidated group is structured as follows.
2012
2011
Domestic
31
33
Foreign
20
20
51
53
Domestic
7
7
Foreign
2
1
9
8
Domestic
4
4
Foreign
3
3
7
7
67
68
Fully consolidated companies
Companies measured at equity
Non-consolidated companies
In the Construction & Real Estate division, BHG Gewerbe GmbH was merged with BHGKG in the year under review.
In the Hotels division, a fully consolidated foreign subsidiary was disposed of and the participating interest in Son Vida
S. A., Palma de Mallorca, Spain, incorporated using the equity method for the first time.
All told, these changes in the consolidated group did not have any material influence on how the group’s earnings,
assets and financial position are presented.
2. Consolidation principles
The assets and liabilities of the domestic and foreign companies included in the consolidated financial statement are
recognized in accordance with general accounting and valuation methods standardized throughout the SHKG group.
The income of subsidiaries acquired or disposed of in the course of the year is carried in the group’s statement of
recognized income and expenses as from the effective date of acquisition or up to the effective date of disposal. The
total comprehensive income of a subsidiary is attributed to the owners of the parent and to the non-controlling interests,
even if this results in the latter recording a negative balance. Non-controlling interests held in consolidated subsidiaries
are disclosed separately from the equity capital of the group.
51
Receivables, payables, contingent liabilities, guarantees and commitments, provisions, income and expenses, as well
as income between consolidated companies are offset or eliminated as part of the consolidation process. Consolidation processes that give rise to future tax expense or income due to the reversal effect of such processes will generate
deferred taxes.
Capital is consolidated using the acquisition method. Concerning company mergers occurring from the 2011 financial
year onwards, the purchase costs of the acquisition correspond to the sum of the fair value of the acquired assets, the
expended equity instruments and the debts arising or taken over at the time of the transaction. The fair value of any
assets and liabilities resulting from an agreement on a contingent consideration payable in connection with the acquisition will serve to increase the acquisition costs. Any subsequent amendments to the valuation of the consideration
arrangement will no longer have an influence on capital consolidation, but must be recognized in the income statement
instead. If the consideration relates to an equity instrument, its subsequent performance must be recognized directly in
the equity capital. Incidental costs arising from the acquisition are carried immediately as expenses.
For each acquisition, the group must decide whether non-controlling interests in the acquired company are measured
at fair value or on the basis of their proportionate share in the net assets acquired in the company. The acquired assets
and liabilities must be recognized at fair value at the time of the transaction. In the periods following consolidation,
any hidden reserves and charges disclosed are carried forward, amortized or released in accordance with the treatment
of the corresponding assets and liabilities. They are subject to deferred taxation unless disclosure means that they will
be recognized for tax purposes anyway.
Goodwill is recognized as the excess of the cost of acquisition plus the sum of the value of the non-controlling interests
and the fair value of equity held prior to the purchase over the proportionate share in the net assets in the company
acquired by the group measured at fair value. Goodwill is verified annually or whenever there are indications of impairment, and written down accordingly as and when necessary. If the acquired net assets exceed the cost of acquisition, the difference is entered directly in the income statement after it has been verified again.
Incidental acquisition expenses were capitalized in the course of mergers and acquisitions up to and including the 2009,
whereas contingent considerations were recognized only if they were probable and could be reliably measured. Subsequent changes to financial considerations were not recognized in income but carried straight to equity in the sense that
they modified the acquisition costs of the purchase. Non-controlling interests were measured exclusively on the basis
of their proportionate share in the fair value of the net assets acquired in the company. Acquisitions made prior to the
switch to IFRS (financial statements up to 31 December 2005) continued to be disclosed according to the book-value
method of accounting, as admissible under the options afforded by German commercial law.
With regard to financial years from 2010 onwards, changes in the size of the group’s holdings in subsidiaries are
reported as equity transactions. When a non-controlling interest is acquired, any difference between the price paid and
the proportionate share in the subsidiary’s net assets are disclosed directly in equity, as are gains and losses resulting
from the disposal of non-controlling interests. Up to now, transactions involving minority holdings were treated in
the same way as transactions with non-group third parties. For this reason, the sale of non-controlling interests would
result in a loss or gain entered in the consolidated financial statement, while any difference between the purchase price
and the proportionate share in the net assets would be recognized at the time of the transaction as goodwill.
Associates are companies upon which the group exerts a significant influence but cannot control, normally where a
share of the voting rights of between 20 % and 50 % is involved. Joint ventures are enterprises managed by the group
in cooperation with one or more partners on the basis of a contract.
Both types of participation – associates and joint ventures – are accounted for using the equity method.
Equity-accounted participations are carried on the basis of their original acquisition costs, adjusted proportionately for
any changes in the net assets of the associate or joint-venture company. Gains or losses resulting from the change in
value over the previous year include the share in the gain or loss of the respective associate or joint venture.
52
C. Accounting and valuation methods
1. Changes to the accounting and valuation methods
All the accounting and valuation methods used in the previous year were retained.
2. Income and expenses
As a rule, revenues and other operating income are recognized when the service in question has been rendered or
the goods / products are delivered, and thus, when the inherent risk is transferred and the amount of the anticipated
consideration can be reliably estimated. As a general rule, income is shown net of sales tax (VAT), returns, rebates and
similar deductions. What is more, the payment in question must be sufficiently likely to occur; inter-group sales are
eliminated.
Alongside this, revenue includes income from construction contracts that span different accounting periods pursuant
to IAS 11, with corresponding application of the percentage-of-completion (PoC) method. The associated expenses are
recognized simultaneously with the receivables from the partial realization of profit. No customer-specific construction contracts were carried out in the 2012 financial year.
Income from leases is recognized in income on a straight-line basis over the term of the contracts. Initial costs directly
attributable to the conclusion of a leasing contract have also to be recognized in linear fashion over the term of the
contract.
Public sector grants and assistance are recognized in accordance with IAS 20 only if there is reasonable assurance
that the conditions attached to it will be complied with and that the grant will actually be allocated. They are treated
as income and recognized in the periods necessary to match them with the related costs that they are intended to compensate.
Operating expenses are reported as expenses at the point in time at which they are incurred or when the service is used.
Benefits paid out by the German Labor Office (Bundesagentur für Arbeit) in accordance with the German Partial
Retirement Act (performance-based public grants) are recognized in the year in which they are granted and charged to
the income statement as personnel expenses.
Interest income and interest charges are recognized in profit or loss on the basis of the effective interest rate method.
Dividends and income from participating interests are recognized in the interest statement when the shareholder’s legal
entitlement to payment arises and a distribution resolution has been passed.
Income tax expense represents the sum of current and deferred taxes.
Other tax is recognized in the income statement as other operating expenses.
3. Foreign currencies
Transactions in foreign currency are translated at the rates prevailing on the date when they occur. Financial assets
and liabilities in foreign currencies are translated at the mean rate prevailing on the balance-sheet date. Any resulting
translation differences are recognized in the statement of income.
The financial statements of the consolidated companies that are denominated in a foreign currency are translated on
the basis of the functional currency concept using the modified closing rate method. Since the subsidiaries carry on
their business independently in financial, economic and organizational terms, the functional currency is essentially
their local currency.
With the exception of shareholders’ equity, which is translated at historic exchange rates, financial assets and liabilities
53
in foreign currencies on the balance sheet are translated at the mean rate prevailing on the balance-sheet date. The
income statement is translated at average exchange rates. In compliance with IAS 21.39 (c), differences in currency
translation occurring as a result of consolidation are allocated to the consolidated shareholders’ equity with a neutral
effect on net income.
When a foreign business operation is disposed of, currency differences which until then had been recorded in shareholders’ equity without any effect on profit are then disclosed in the income statement as part of the profit or loss from
the sale of the subsidiary.
The development of the exchange rates serving as the basis for currency translation is shown below.
EUR
Currency
Closing rate
31.12.2012
31.12.2011
Average rate
2012
2011
1 US Dollar (USD)
1.3194
1.2939
1.28577
1.3920
1 Swiss Franc (CHF)
1.2072
1.2156
1.20528
1.2326
1 Pound Sterling (GBP)
0.8161
0.8353
0.81119
0.86788
292.3000
314.5800
288.77645
279.37000
4.0740
4.4580
4.17708
4.12060
11.1727
10.4830
10.53581
10.09700
1 Hungarian Forint (HUF)
1 Polish Złoty (PLN)
1 South African Rand (ZAR)
4. Intangible assets
Intangible fixed assets (but not goodwill) that are acquired in exchange for a consideration are valued at acquisition
cost and depreciated using the scheduled straight-line method over their useful life of between 3 and 15 years. Writedowns are allocated to the corresponding function areas (divisions). Borrowing costs were not capitalized in the
business year under review, as qualifying assets within the meaning of IAS 23 did not exist.
Non-scheduled write-downs on intangible assets are disclosed when the recoverable amount, i.e. the higher of
value-in-use of the asset concerned and net sale proceeds, falls below the carrying value. Should the grounds for the
non-scheduled write-downs effected in previous periods no longer apply, impairments are reversed via write-ups to
amortized cost.
Goodwill arising from company acquisitions is allocated to what are known as cash-generating units, or CGUs for
short. CGUs are essentially individual subsidiaries or sub-groups. At this reporting level, goodwill is monitored by the
management for internal control purposes. The recoverable amount of a cash-generating unit to which goodwill has
been allocated is tested for impairment at least once a year, or more frequently if events indicate an impairment may
exist pursuant to IAS 36, and, if necessary, written down to the lower recoverable value. The recoverable amount is
determined in the form of the useful life as the current value of expected future cash flows. The discounted cash flow
(DCF) model is used for the valuation.
Subsequent write-ups do not take place as once effected, impairment of goodwill cannot be reversed.
5.Tangible assets
Tangible fixed assets are measured at acquisition cost or manufacturing cost net of scheduled, straight-line depreciation.
54
Scheduled write-downs are based on the following useful lives.
■■
■■
■■
■■
Buildings / leasehold improvements
15 to 60 years
Show homes
15 to 20 years
Technical equipment and machinery
5 to 25 years
Operating and business equipment, furniture and fixtures 3 to 25 years
Depreciation of aircraft takes place using the straight-line method based on a typical service life of 15 years and
assuming a residual value of 40 % of the original purchase price. Aircraft that remain with the division beyond the 15
years are written down using the straight-line method over a remaining useful life of 10 years and assuming a residual
value of EUR 0.
Scheduled depreciation of technical equipment and machinery, operating and office equipment, furniture and fixtures
is, for the most part, based on the straight-line method.
Differences between the measurement according to IFRS and that according to German income tax rules (§ 6, para. 2a,
EstG) give rise to deferred taxes.
In accordance with IAS 36, non-scheduled write-downs on tangible assets are disclosed when the amount recoverable
through use of the asset, i.e. the higher of value-in-use of the asset concerned and net sale proceeds, falls below the
carrying value.
Non-scheduled write-downs on aircraft occur when the residual carrying amount of an aircraft is above the riskadjusted, sustainable market value of the aircraft according to AVITAS (base value) or the cash value of net cash flows
generated by the aircraft in question. The net cash flow before interest and taxes arises out of the future rental income
contractually agreed on the balance-sheet date, plus the likely proceeds from the sale of the aircraft at the end of the
contract (terminal value). The terminal value recognized is the market value upon contract expiry calculated according
to AVITAS. The net cash flows are discounted using a risk-adjusted rate (weighted average cost of capital).
Where the grounds for the non-scheduled write-downs no longer apply, the corresponding amounts are written back,
the upper limit of the write-up being the amortized costs that would have arisen at the valuation date had the writedown not taken place.
According to IAS 17, leasing contracts must be classified. Thus, economic ownership of a leased asset is assigned to
the lessee if the latter essentially bears all of the opportunities and risks associated with its usage (operating lease).
Bavaria International Aircraft Leasing GmbH & Co. KG does not have any finance leases on its books.
Prior to the inception of a leasing contract, the lessee pays a commitment fee to the lessor per aircraft as a form of
security. This fee is reimbursed if the lessee fulfils the terms of the leasing agreement satisfactorily up to the end of
the leasing period. The lessor is obliged to take out comprehensive third-party liability as well as hull insurance on the
aircraft. Upon expiry or termination of the contract, the lessee must return the aircraft in the specific condition stated in
the contract. Costs and consequential expenses arising from non-compliance with these terms are charged to the lessee.
The Aircraft Leasing division has been disclosed on the balance sheet as a discontinued operation since the 2011 business year.
Properties constructed or developed for future use as investment property are initially reported as tangible assets
and then, following completion, as investment property, always provided that the construction project started before
1 January 2009. In the course of the “Annual Improvements” to IFRS, it was decided that IAS 40 should be applied as
early as the building phase for all financial years starting from 1 January 2009.
Investment grants received under the joint scheme for improving regional economic structures (“Verbesserung der
regionalen Wirtschaftsstruktur”), along with investment allowances under the Investment Allowances Act, are deducted from the acquisition costs of the corresponding asset in accordance with IAS 20. Investment grants are subject
55
to specific obligations and are disclosed on the balance sheet only if there is reasonable assurance that the conditions
will be complied with. Write-downs are calculated using the straight-line method.
Individual subsidiaries, individual properties in the real-estate portfolio or individual aircraft are used as cash-gene
rating units for valuing the tangible asset in question.
Borrowing costs that can be attributed directly to the acquisition, construction or manufacture of a qualified asset are
capitalized as part of the cost of acquisition or manufacture. A qualified asset is an asset that takes a substantial period
of time to produce or prepare for use or sale.
If the procurement or manufacture is specifically funded, the amount to be capitalized corresponds to the expenses
effectively incurred, less any income from the short-term investment of the financial resources. In the case of general
financing, the borrowing costs to be capitalized are calculated using an average rate relative to the non-project-specific
financial liabilities. All other borrowing costs are recorded as expenses in the period in which they occur.
are calculated in accordance with group accounting and valuation methods. Cumulative changes after acquisition are
offset against the carrying amount.
Any difference in amount at the time of acquisition between the cost of acquisition and the pro rata net assets (equity)
of these associates is initially allocated to the pro rata assets and liabilities based on a measurement of the fair value.
Any exceeding amount corresponds to the goodwill that is included in the carrying amount of the associate and is not
depreciated on a scheduled basis. The carrying value of the associated company is tested for impairment annually,
while the group’s share in the result of the associated company is recognized in income and its share in cumulative
changes in equity (not recognized in the income statement) is disclosed directly in group equity.
If the group’s share in the losses of the associate or joint venture equals or exceeds the carrying amount of the investment, no further shares in additional losses will be recognized, unless the group has assumed additional financial
commitments or guarantees.
6. Investment property
8. Financial instruments
Property held to earn rental income or for long-term capital appreciation, including property currently under construction for such purposes is disclosed as investment property. Furthermore, property used in building leasehold contracts
is also classified and measured as “IAS-40 real estate” if the material opportunities and risks arising from said property
are allocable to the group. Property held by the group for the production of goods and services or for administrative
purposes does not satisfy the criteria for definition as investment property.
Investment property is initially recognized at acquisition or production cost, including transaction costs, and subsequently measured at fair value. This also applies to investment property in the construction phase. Value alterations
resulting from changes in the fair value are included in the income statement under other operating income or expenses.
The market value of the real estate is calculated according to the International Valuation Standard IVS 1, mainly
using the discounted cash flow method (DCF method) via the discounting of future cash flows. A ten-year perspective is used, with the assumption of sale of the property at the end of the calculation period. Cash flows for the individual years are determined on a monthly basis and then aggregated, current rental agreements being considered on an
individual basis. Upon expiry of the agreements, market rental values are recognized and typical vacancy periods
applied. The cash flows shown are net of operating expenses, which primarily comprise vacancy costs, maintenance
and service costs, administrative expenses, non-allocable operating costs and marketing costs. The sale value at the
end of the calculation period is the perpetuity of the cash flow based on the 121st month; costs to sell are not taken into
account. The cash flows of the individual years and the sale value are discounted to the date of the valuation using a
property-specific interest rate. The cash value is the fair value of the respective property. Special values are calculated
for property to which the DCF method cannot be applied (e.g. building leases, vacant plots, project developments).
An investment property is derecognized on disposal or when it is permanently withdrawn from use and no future
economic benefits are expected from its disposal. The resulting gain or loss from the sale of any asset is determined
as the difference between the proceeds and the carrying value of the asset and is recognized in other net operating
income.
Financial instruments are contracts resulting in financial assets at one company and in a financial liability or equity
instrument at another. IAS 39 subdivides financial assets into the following categories.
7. Equity-accounted participating interests
Companies whose business and financial decisions can be significantly influenced, either directly or indirectly, by
SHKG are accounted for using the equity method and recognized initially at acquisition cost. In the subsequent periods, participating interest is either recognized in income or carried to equity depending on the group’s share in the
profit and loss account and the other comprehensive income. The equity and the income of the participating interest
56
■■
■■
■■
■■
Financial assets or liabilities “held for trading purposes” (A-FV)
Investments “held to maturity” (A-HM)
“Loans and receivables” (A-LR)
Financial assets “available for sale” (A-AS)
In the case of financial liabilities, a distinction is drawn between assets “measured at fair value through profit or loss”
(L-FV) and financial assets “measured at amortized cost” (L-AC).
IFRS 7 requires disclosure according to classes of financial instrument. These were harmonized with the categories set
out in IAS 39, with the following items added.
■■ Liquid assets
■■ Derivatives used in hedging transactions
■■ Liabilities from finance leasing
Financial assets and liabilities are categorized depending on the purpose for which they were acquired, and this is verified on each balance-sheet date. In addition to cash and cash equivalents, the group currently carries financial assets
consisting mainly of trade-account receivables, other receivables and loans, and financial instruments held for sale.
Financial liabilities generally give rise to a repayment entitlement in cash or another financial liability. They include,
first and foremost, liabilities to banks (borrowings), trade-account payables and other liabilities.
Financial instruments are recognized as soon as the group becomes a contractual party to the provisions of a financial
instrument. They are derecognized when the rights to payments from the investment expire or are transferred and the
company has transferred substantially all the risks and rewards of ownership.
Initial recognition is at acquisition cost as at the contract date. Transaction costs are also reported with respect to all
financial assets not carried at fair value through profit or loss.
After initial recognition, available-for-sale financial assets are measured at fair value with gains or losses recognized
directly in equity. If no market price exists, the market value is established by way of appropriate valuation methods.
57
Changes in value are disclosed in equity via a revaluation provision, with due allowance for deferred taxes. If the asset
is derecognized, the revaluation provision is released and recognized in the income statement.
Financial assets measured at fair value through profit or loss include those “held for trading”. Any changes in the fair
value of financial assets in this category are recognized in profit or loss at the time of value increase or impairment.
Shares in non-consolidated affiliated undertakings recognized under financial assets are carried at the lower of acquisition cost and fair value. Participating interests are measured at market price or fair value. Should these values not
be available, the assets will be measured at acquisition cost. Shares in non-consolidated subsidiaries or participating
interests are derecognized on disposal to parties outside the group.
Loans and receivables, together with any financial assets for which published price quotations in an active market
are not available and whose fair value cannot be determined reliably, are measured – to the extent that they have a
fixed term – at amortized cost using the effective-interest method. This is the amount at which a financial instrument
was measured at initial recognition, minus any principal repayments and any non-scheduled write-downs on impairment or non-recoverability. Should there be any difference between the initial amount and the amount repayable
upon maturity (premium), the amortized costs will include the cumulative spread of the premium over the term via
the effective interest method.
As a general rule, the amortized cost of current receivables and liabilities or financial instruments without fixed maturities is the nominal amount or the repayment amount.
In accordance with IAS 39, regular checks are carried out to assess whether there is any objective evidence of impairment. Dubious financial assets, where it is highly unlikely that funds will ever be received, are fully written off. If
doubts exist as to their recoverability, the receivables will be recognized at their probable recoverable amount by way
of consideration of the potential default risk. Once identified, an impairment loss is recognized as an expense and
recorded in an allowance account; a direct write-off of the financial asset does not take place.
If available-for-sale financial assets suffer sustained impairment, any positive balance in the revaluation provision
is initially used to offset the impairment before the residual amount is realized in profit and loss. If the revaluation
provision is already negative, the impairment is posted as an expense. In the case of financial instruments measured at
amortized cost, subsequent appreciations in value are written up to a maximum of the carrying value that would have
ensued had there been no impairment. If the subsequent increases in value affect held-for-sale financial assets, the
reversal in the case of loan capital instruments is recognized in profit or loss, whereas reversals on equity instruments
are recognized directly in equity. If the assets are measured at amortized cost, subsequent appreciations are not taken
into account.
Financial liabilities are measured at amortized cost using the effective interest method. These liabilities are recognized
as either current or non-current depending on the due date of the payment. Liabilities are derecognized on settlement
or when the reasons for recognizing a liability no longer apply.
The group uses derivative financial instruments solely for hedging purposes, notably interest-rate swaps in order to
protect against interest-rate exposures, and currency futures to hedge against the risk of exchange-rate shifts.
Derivative financial instruments that comply with IFRS hedging requirements are designated as part of a hedging relationship and recognized at settlement date. They are measured at fair value. The fair values are calculated by applying
present value and option price models. As far as possible, the relevant market prices and interest rates observed at
the balance-sheet date, which are derived from recognized sources, are used as the input parameters for these models.
Insofar as they apply to the effective portion of the derivative financial instrument, changes in market value – after
allowing for deferred taxes – are shown in equity as unrealized gains or losses until the income effect of the underlying
transaction is realized. Ineffective parts of derivatives are in principle recognized in the income statement. Depending on term and market value, these instruments are carried under current or non-current financial assets or liabilities.
Derivatives are derecognized on settlement.
58
Derivative financial instruments that do not comply with IFRS hedging requirements are disclosed as financial
instruments held for trading purposes and recognized on the settlement date. They are measured at fair value. The
fair values are calculated by applying present value and option price models. As far as possible, the relevant market
prices and interest rates observed at the balance-sheet date, which are derived from recognized sources, are used as
the input parameters for these models. Changes in fair value are recognized as interest income. Depending on term
and market value, these instruments are carried under current or non-current financial assets or liabilities. Derivatives are derecognized on settlement.
The fair-value measurement of financial instruments follows a three-level hierarchy, whereby the valuation parameters
used are classified according to their proximity to an active market.
■■ Level 1: Quoted prices in active markets for identical financial assets and liabilities
■■ Level 2: Parameters other than quoted prices that are either directly (price) or indirectly
(derived for the price) observable
■■ Level 3: Factors not based on observable market data
The net gains and losses in the “loans and receivables” category are explained in section II.A.8 and comprise revaluation gains and income from loans and receivables written down, as well as corresponding impairments and derecognitions which are entered under distribution costs.
The net gains and losses in the “financial instruments held for trading purposes” category are shown under interest
income (section II.A.8) and comprise solely market value changes and interest payments from derivates that do not
comply with IFRS hedging requirements. Derivates are held for hedging purposes only and are not traded.
No significant gains or losses were reported in the “held for trading”, “held to maturity” and “held for sale” categories
of financial asset.
9. Customer-specific construction contracts
Customer-specific construction contracts usually span several reporting periods. If the income from a construction
contract can be estimated reliably, the revenues and costs associated with the contract should be disclosed as the
project progresses in line with the degree of completion (PoC method), and not later when the main risks / rewards
have been transferred or the services rendered. The percentage of a contract completed is determined using the ratio of
costs incurred against the estimated total cost (cost-to-cost method). If the income from a construction contract cannot
be estimated reliably, revenue is recognized only in the amount of the contract costs incurred which are likely to be
collected; contract costs are recognized in the period in which they are incurred.
The orders are carried under receivables or liabilities from percentage of completion. If the cumulative performance of
the contract (cost and income) exceeds advance payments in individual cases, the construction contract must be carried
on the assets side of the balance sheet under “future receivables from construction orders” in line with the PoC method.
If the balance remains negative even after deduction of advance payments, the negative balance is carried as a “liability
from construction contracts” under “future payables from construction orders”. Anticipated losses from such contracts
are covered by write-downs or provisions, taking all identifiable risks into account.
59
10. Inventories and biological assets
11. Discontinued business operations
Pursuant to IAS 2, inventories are measured at the lower of acquisition or manufacturing cost (or average acquisition or
manufacturing cost) and net realizable value. The net realizable value reflects the estimated achievable sales proceeds
in the normal course of business less estimated distribution costs.
The production costs of unfinished and finished buildings include all costs directly allocable to development as well
as an appropriate portion of allocable overheads. Sales costs, general administration costs and interest on external
borrowing are not capitalized unless the provisions of IAS 23 apply.
Biological assets are measured according to the provisions of IAS 41. These include juvenile fish from breeding and
farming, up to harvest maturity. From the time of initial recognition and thereafter, they are recognized at fair value,
less costs to sell. As the fair value – the amount at which an asset is exchanged or a debt paid between competent,
contractually willing and mutually independent business partners – cannot be accurately determined at initial recognition, the asset is initially valued at acquisition cost or cost of manufacture.
Discontinued operations are recognized as soon as any component of an entity that can be clearly distinguished from
the rest of the entity is classified as held for sale, or has already been disposed of and such business division either
The fair value of a biological asset is determined hierarchically as follows.
a) Price on the relevant market
b) Surrogate for the market price if a market price pursuant to a) above is not observable
c) Present-value method if neither a) nor b) above can be applied
Since there is no active market for live fish during farming in land-based or freshwater habitats, measurement takes
place according to IAS 2.
A market does, however, exist for live fish farmed in saltwater habitats, and this is oriented to the live weight of the various species of fish and is geared to the price of the processed fish. Fair-value measurement of Atlantic salmon (Salar)
takes place as from a live weight of 4 – 4.5 kg, and for the Coho and trout species as from a live weight of 2 – 2.5 kg.
In this case, the fair value is the market price at the end of the month, less estimated production costs and costs of sale.
The live weight is determined by removing and measuring live fish. Fish that have not reached the designated weight
are valued according to IAS 2. On the basis of improved findings, the harvested weight for Salar was set at 4.5kg (previous year: 4.0kg), that for Coho and salmon trout at 2.5kg (previous year: 2.0kg) on 31 December 2012. This change
has little significance in terms of the consolidated income statement, resulting in a profit in the fair-value measurement
of TEUR 411 for the reporting year.
The market price is derived from the FIS (Fish Information & Services) price for salmon trout and Coho, and the Urner
Barry price for Salar in the last week of the financial year. The published prices (i.e. free-on-board (FOB) prices in the
destination market) are adjusted to take account of customary Chilean FOB prices. The fair value calculated is compared with the cumulative acquisition or manufacturing costs incurred so far, and any gain or loss in value recorded in
a separate item under manufacturing costs in the current results.
Biological assets maintained in saltwater are reported under current assets, whereas freshwater assets are classified as
non-current assets.
■■ represents a separate major line of business or a geographical area of operations, or
■■ is part of a single coordinated plan to dispose of a separate, significant line of business
or geographical area of operations, or
■■ is a subsidiary acquired solely with a view to resale.
The associated assets and liabilities are disclosed on the balance sheet as “held for sale” and measured at the lower of
their carrying amount and fair value less costs to sell. Scheduled write-downs are no longer recognized as from the date
of reclassification. Income from discontinued business is carried separately in the income statement from on-going
operations.
12. Deferred taxes
Tax assets and liabilities are accrued to cover any temporary differences of assets and liabilities between the tax base
and the IFRS balance sheet, as well as to cater for consolidation processes that affect the income statement. Deferred
taxes are recognized in the amount expected to be paid or recovered in subsequent fiscal years based on the tax rate
enacted at the time of recognition.
If the temporary differences concern goodwill or the initial recognition (with the exception of mergers) of other
assets and liabilities arising from transactions that affect neither the taxable income nor the net income for the year, the
deferred tax asset or liability will be recognized neither at the date of initial recognition nor afterwards. If deferred
taxes result from the initial recognition of a company merger, the fiscal effect of this recognition must be included.
Deferred taxes arising from temporary differences in connection with participations in subsidiaries, associates and
joint ventures are disclosed only if the group is unable to determine the point in time of the reversal of the temporary
differences and it is unlikely that the difference will be reversed in the foreseeable future.
Deferred tax assets, which also include tax reduction claims from the expected future utilization of tax loss carryovers,
are reported only if the realization of these deductions is reasonably certain. Deferred taxes are measured by applying
the tax rates that, under current provisions of the law, would apply in the future when the temporary differences will
probably be reversed. The effect on deferred tax assets and liabilities of changes in tax laws is recognized in the period
that the law is enacted.
Deferred tax assets are set off against deferred tax liabilities in accordance with IAS 12.74.
The consolidated tax rate is 17.15 % (previous year: 17.15 %).
13. Provisions for pensions
The valuation of pension provisions is made according to IAS 19 using the projected-unit credit method. This method
takes account not only of known pensions and known earned future pension entitlements at the balance-sheet date,
but also of expected future increases in pensions and salaries based on cautious estimates of all relevant parameters.
Any year-end differences between defined pension obligations and the fair value of any plan obligations (actuarial
gains and losses) are recognized as income or expense only if such gains and losses exceed 10 % of the present value of
the total obligations. From the following year on, the resulting differences are distributed over the average remaining
60
61
period of service of the entitled employees and recorded as income or expense. The interest component included in the
pension expenses is shown in the operating result as personnel expenses.
Insofar as plan assets exist, they are offset against pension provisions. Income from plan assets is offset against personnel expenses.
14. Other provisions
Other provisions are accrued if a past event results in a current obligation to third parties, it is probable that resources
will be used to meet this obligation, and the anticipated amount of the required provision can be estimated reliably.
Provisions for obligations which, in all probability, will not lead to an outflow of resources in the subsequent year are
discounted at prevailing market rates and carried at the present value of the expected outflow of resources, provided
the interest effect is material. The discount factor is based on market interest rates with matching maturities. Provisions
are not offset against recourse claims.
An existing right will be recognized as an asset only if reimbursement is virtually certain and the amount to be reimbursed can be reliably estimated. Any increases in provisions resulting exclusively from the compounding of interest
are recorded in the income statement as interest expenses.
15. Treatment of leasing contracts
Leasing contracts are classified as finance leases when the leasing conditions transfer all important risks and opportunities associated with ownership to the lessee. All other leasing activities are known as operating leases.
When finance leasing property is rented, the assets are disclosed at the beginning of the lease under tangible assets at
the fair value of the leased property or, if lower, at the present value of the minimum future lease payments, while the
corresponding liabilities to the lessor are recognized in the balance sheet as liabilities from financial services. This
tangible fixed asset is depreciated and the liability eliminated over the term of the leasing arrangement. The difference
between the total leasing obligations and the fair value of the leased property is distributed over the term of the leasing
arrangement in the statement of income to ensure that a constant interest rate applies to the remaining balance for the
periods involved.
Rents and leasing payments arising from operating leasing arrangements are recognized on a straight-line basis over
the term of the contract.
16. Assumptions and estimates
The consolidated financial statement is prepared on the basis of a number of accounting estimates and assumptions that
have an effect on the recognition and measurement of items on both the balance sheet and the income statement. The
amounts ultimately realized may differ from these estimates. Estimates are necessary particularly during:
The estimates applied were made on the basis of historical data and other relevant factors, including the assumption
of the group as a going concern. Continuously verified, all estimates and assumptions are made to the best of our
knowledge and belief with the aim of providing a true and fair picture of the earnings, assets, and financial position
of the group.
The assessment of goodwill and other assets also calls for the forecasting and discounting of future cash flows. The
cash flow forecasts are based on projections resulting from financial plans approved by management. Other material
assumptions relate to the discounting factor and the tax rates. Any change in the key factors which are applied in the
impairment review of goodwill may possibly result in impairment losses of different amounts being recognized.
Investment property is measured at fair value. By and large, the discounted cash-flow method using future cash flows
is used to determine the current market value of investment property, with estimates and assumptions on, above all,
market rental values, vacancy periods, operating costs and market- or property-specific interest rates forming the basis
of the calculations. These may deviate from actual later developments.
Although useful lives are generally defined using a standardized group table, different values may be applied if estimates diverge substantially from the standard. In addition, all useful lives are verified once a year and adjusted where
necessary. The effective useful life may differ from the estimate.
Dubious receivables are measured on the basis of the maturity structure of the receivable, the creditworthiness of the
customer and past experience. The losses effectively incurred may not correspond to the forecasts.
Depending on the underlying transaction, the measurement of provisions may be sophisticated and require substantial
judgment and a number of estimates. Management’s assumptions about the timing and amount of settlement are based
on historical data, estimates and discounting factors. As such, the effective outflow of economic resources may differ
from the valuation / allocation of funds to the provisions.
Deferred tax assets on losses carried forward are shown in the accounts based on an estimate of the future realizability
of the tax advantages, i.e. if sufficient tax income or reduced charges can be anticipated. The actual tax situation in
future periods, and the extent to which tax loss carry-forwards may effectively be used, may differ from the assessment
made at the date the deferred tax assets are recognized.
Fair values for financial derivatives are calculated by applying present-value and option-price models. The risk- and
maturity-adjusted indicators observed at the balance-sheet date, which are derived from recognized sources and can be
monitored on active markets, are used as the input parameters for these models. Interest swaps and forward exchange
transactions are measured on the basis of inputs other than price, but which can nonetheless be indirectly monitored.
For this reason, the measurement of interest swaps and forward exchange transactions is assigned to level 2 of the
fair-value hierarchy according to IFRS 7.27A. The effective development of the input parameters can vary from the
assessment conducted on the balance-sheet date.
If the effective developments deviate from the expected ones, the assumptions and, if necessary, the carrying amounts
of the affected assets and liabilities will be adjusted accordingly. At the time the consolidated financial statements
were prepared, there was no indication of significant changes in the assumptions and estimates used for accounting
and valuation, and it can be assumed that the carrying amounts of the affected assets and liabilities will not need to be
materially adjusted in the following business year.
■■ assessment of the need for and measurement of impairment losses on tangible and intangible assets, and the
definition of discount and capitalization interest rates when valuing investment property and inventories;
■■ determination of the useful life of a depreciable asset;
■■ assessment of the need for and measurement of impairment losses on loans and receivables, and recognition
and measurement of pension and other provisions;
■■ assessment of the realizability of deferred tax assets;
■■ selection of the parameters to be applied during model-based measurement of derivative financial instruments.
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63
II. Notes to individual items
The cost of sales of the Seafood division includes fair-value adjustments in connection with the sale and processing of
fish after they have attained a certain live weight (see I.C.10) and amount to the following.
A. Notes to the income statement
The Seafood division was integrated in the group on 1 July 2011; as such, the figures for the previous year are comparable only to a limited degree.
Fair-value adjustment based on live weight
Fair-value adjustment based on sale
1. Sales revenues
01.07. –
31.12.2011
TEUR
TEUR
– 14,745
8,670
2,731
– 5,661
– 12,015
3,009
2012
2011
TEUR
TEUR
388,782
263,127
Hotels division
215,779
216,645
Seafood division
81,136
39,483
Other proceeds
24,364
24,973
2012
2011
– 37,345
– 76,462
TEUR
TEUR
672,716
467,766
– 13,019
– 9,602
Personnel costs
– 7,928
– 6,639
Domestic sales revenues amounted to TEUR 509,010 (previous year: TEUR 349,953).
Commissions
– 7,585
– 10,468
Write-downs
– 1,040
– 1,088
2. Cost of sales
Maintenance, operating costs
– 805
– 912
Less inter-group revenues
Depreciation includes write-downs of TEUR 143 (previous year: TEUR 141) on the usage value pursuant to IAS 36 of a
domestic hotel building.
3. Distribution costs
PR, media advertising
Valuation allowances
82
– 269
– 6,354
– 4,790
– 36,649
– 33,768
– 42,660
2012
2011
– 28,889
– 25,353
TEUR
TEUR
Facility management
– 21,408
– 29,129
Personnel costs
– 28,956
– 26,523
Lease expenses
– 18,928
– 18,576
Auditing / consulting
– 1,467
– 1,088
Hotel activities / cost of goods employed
– 12,270
– 13,524
Rents and leasing
– 1,288
– 905
– 6,132
– 514
Write-downs
– 884
– 604
Fleet
– 561
– 570
– 98
– 544
– 10,461
– 6,435
– 43,715
– 36,669
2011
2012
TEUR
TEUR
Sale of land and buildings / portfolio management
– 153,973
– 64,886
Personnel costs
– 120,236
– 108,429
Seafood / cost of goods employed, fair value
– 86,240
– 24,435
– 49,761
Appreciation / depreciation
General contractor and associated activities
Other cost of sales
– 21,947
– 28,082
– 519,784
– 355,588
Other costs
4. Administration costs
Other costs
64
31.12.2012
65
5. Other operating income
8. Financial result
2012
2011
2011
TEUR
TEUR
40
227
– 34
2,444
2,926
2,484
3,187 TEUR
TEUR
38,110
120,307
Price gains / gains on the sale of equities
3,431
8,713
Gains on the disposal of participating interests
2,226
–
Proceeds from the release of provisions
2,052
204
Grants / compensation payments
2,030
526
Allocated charges within the group
106
196
Gains from the disposal of fixed assets
– 4
8,678
Interest expenses
– 62,350
– 64,182
3,529
3,265
Minority interests
– 10,194
– 17,177
51,480
141,889
– 72,544
– 81,359
– 70,060
– 78,172
Changes in the market value of real estate
Other
The change in the market value of real estate refers to investment property only. It is unrealized, and results largely
from the revaluation of investment property at fair value.
Gains from the disposal of participating interests relate mainly to the disposal of our stake in design hotels AG, Berlin.
Proceeds from the release of provisions result mainly from the transfer of a provision for impending losses, as well as
from the release of leasing provisions. Gains from the disposal of fixed assets in the previous year relate mainly to the
building at Denninger Strasse 165 in Munich and the sale of operating and business equipment at the Sheraton Seehof
in Davos. The building at Denninger Strasse 165, Munich was leased back from SHKG. Expenses in connection with
the leasing agreement are disclosed in the administrative costs.
6. Other operating expenses
2012
2011
TEUR
TEUR
Price losses / losses on the sale of equities
– 4,651
– 12,206
Non-allocable personnel costs
– 1,077
– 863
– 52
– 155
– 4,473
– 4,620
– 10,253
– 17,844
Losses from the disposal of fixed assets
Other
7. At-equity result
As in the previous year, the result from investments accounted for using the equity method essentially involved the
Beverages division, which is consolidated “at equity”.
66
2012
Other financial income
Income from participating interests
Income from other securities
Interest income
Other financial expenses
Since, under IAS 32, minority interests in consolidated partnerships are to be reported as debt capital, the proportionate
earnings of such interests are disclosed under investment income or expenses.
Net interest income from financial instruments assigned to the IAS 39 measurement categories comprises the following.
2012
2011
TEUR
TEUR
Loans and receivables (A-LR)
2,439
2,607
Financial assets at fair value through profit or loss (A-FV)
– 159
– 275 Financial liabilities at fair value through profit or loss (L-FV)
– 10,474
– 7,609
Financial liabilities measured at amortized cost (L-AC)
– 51,022
– 54,496
– 59,216
– 59,773
The income relates to interest-bearing “other” financial liabilities, the expenses largely to interest payable on loans and
to the ineffective portion of cash-flow hedges (TEUR – 215, previous year: TEUR + 254).
9. Income tax expenses
Current taxes
Deferred taxes
2012
2011
TEUR
TEUR
– 9,106
643
5,615
– 4,004
– 3,491
– 3,361
67
Current taxes are attributable largely to the business year under review and comprise the following: TEUR 4,430
(previous year: TEUR 200) in corporation tax and solidarity surcharge, TEUR 4,339 (previous year: TEUR 171) in
trade tax, and TEUR 337 (previous year: TEUR 272) in taxes due to fiscal authorities abroad.
The following deferred tax assets and liabilities in the balance sheet relate to recognition and measurement differences
for the individual balance sheet items.
31.12.2012
31.12.2011
Assets
TEUR
Liabilities
Assets
TEUR
Liabilities
Fixed assets
1,276
– 9,225
3,251
– 9,126
Inventories, receivables, other assets
3,264
– 4,671
4,211
– 5,438
Provisions
3,150
– 78
3,075
–
984
– 348
960
– 2,057
– – 539
– – 8,187
28,235
– 29,976
– 2,859
– 491
2,316
– 490
39,767
– 15,352
43,789
– 25,298
– 11,169
11,169
– 13,058
13,058
28,598
– 4,183
30,731
– 12,240
Liabilities
Special tax-allowable items
Losses carried forward
Other
Gross amount
Offsets
Deferred tax assets
The taxes incurred in the group are trade and corporation tax; the tax rates on which the calculation of the deferred
taxes is based are 17 % for the trade tax and up to 33 % if both trade and corporation tax are applicable.
The provisions on extended trade tax reduction for real estate companies were taken into account when calculating deferred taxes. For this reason, deferred taxes are recognized only to a part of the recognition / measurement differences
concerning real estate and special tax-allowable items in the consolidated result.
Temporary differences between the IFRS balance sheet and the tax balance sheet arising from investments in subsidiaries and investments accounted for using the equity method for which no deferred tax liabilities were recognized, as
permitted by IAS 12.39, came to TEUR 43,076 (previous year: TEUR 46,077).
Deferred tax assets for tax loss carry-forwards are recognized only within a 3- to 5-year planning horizon for the respective company. Trade tax and corporation tax loss carry-forwards for which no deferred tax assets were recognized
came to TEUR 45,401 (previous year: TEUR 47,218) and TEUR 17,028 (previous year: TEUR 17,110) respectively.
Deferred tax assets were also not recognized in respect of unused foreign tax loss carry-forwards in the Hotels division
amounting to TEUR 5,991 (previous year: TEUR 4,450). In the previous year, domestic trade tax loss carry-forwards
amounting to TEUR 4,268 were no longer recognized due to company restructuring in the Hotels division.
In addition, deferred taxes are explained in more detail in the section on accounting and valuation methods.
The tax expense reported deviates from the expected tax expense, and the table below explains the reasons for this
discrepancy.
2012
TEUR
TEUR
61,269
96,802
– 10,508
– 16,602
Tax-exempt income
19,595
21,661
Variances due to different tax rates
– 5,050
– 2,474
Non-deductible expenses
– 7,550
– 4,724
Taxes unrelated to the accounting period
– 1,276
– 517
Valuation allowance for recognized tax loss carry-forwards
– 541
– Subsequent recognition of tax loss carry-forwards
1,568 – Profit before taxes
Expected income tax at 17.15 % (previous year: 17.15 %)
Losses prior to intra-Group transfers
– 61 – Other fiscal effects
332
– 705
– 3,491
– 3,361
Income tax expenses
The effective tax rate in the year under review was 5.7 %, compared with 3.5 % in the previous year.
10. Income from discontinued operations
In the previous year, the assets and liabilities of the group’s discontinued South African operations were disclosed on
the balance sheet as “held for sale” and measured at the lower of their carrying amount and fair value. Sale of the assets
and liabilities took place during the 2011 business year.
The carrying amounts of the assets and liabilities “held for sale” in the business year relate solely to the former Aircraft
Leasing division and were as follows on the respective accounting dates.
31.12.2012
31.12.2011
TEUR
TEUR
13,247
36,939
4,164
3,861
42
429
Other current assets
54
119
–
15,097
17,507
56,445
3,943
9,823
–
6,269
1,157
3,149
2
1
Other current liabilities
12
269
Other current provisions
328
537
5,442
20,048
Tangible assets
Other non-current receivables and assets
Cash
Assets held for sale
Provisions for taxation
Other non-current provisions
Deferred tax liabilities
Liabilities held for sale
68
2011
69
B. Notes to the balance sheet
Income and expenses arising from the Aircraft Leasing division were as follows.
Sales revenues
Costs and expenses
Income from discontinued operations before tax
Income tax expenses
Income from discontinued operations after tax
2012
2011
TEUR
TEUR
7,250
21,439
– 5,742
–
– 528
– 24,024
980
– 2,585
95
443
1,075
– 2,142
–
–
1,075
– 2,142
Income and expenses arising from the discontinued operations in South Africa in the previous year were as follows.
2011
1. Intangible assets
Intangible assets comprise the following.
31.12.2012
31.12.2011
TEUR
TEUR
Goodwill
5,213
5,278
Other intangible assets
7,873
8,110
13,086
13,388
The intangible assets developed as follow, categorized by group.
Goodwill
As at 01.01.2011
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
91,227
– 89,327
1,900
3,017
–
3,107
TEUR
Sales revenues
12,398
Changes in the scope of consolidation
15,301
Currency translation
Costs and expenses
Income from discontinued operations before tax
– 12,376
As at 31.12.2011
–
361
– 89,327
5,278
– 65
–
– 65
94,540
– 89,327
5,213
15,323
Income tax expenses
– 2,282
Income from discontinued operations after tax
13,041
361
94,605
–
13,041
Shares in income attributable to non-controlling interests existed neither in the financial year under review nor in
the previous year. Thus, income from discontinued operations after tax corresponds exactly to the shares of income
attributable to shareholders of the parent company.
Costs and expenses for the previous financial year included domestic gains on foreign currency hedges amounting
to TEUR + 4,640 opposed by exchange-rate losses arising from the measurement of trade-account receivables on the
balance-sheet date of TEUR – 848 incurred in the context of our activities in South Africa.
As at 31.12.2012
As in the previous year, goodwill stemmed from the Construction & Real Estate and Seafood divisions, with carrying
amounts of TEUR 1,900 and TEUR 3,313 respectively. The changes compared with the previous year result entirely
from currency translation.
Goodwill in the divisions is tested for impairment regularly at the end of the year or, should there be indications of
impairment, by applying the discounted earnings method to determine values based on multi-year planning using a
risk-adjusted discount rate and taking taxes into account.
Goodwill is tested for impairment regularly at the end of the year by applying the discounted earnings method to
determine values based on multi-year planning using a risk-adjusted discount rate and taking taxes into account. Calculations are based on a 5-year planning horizon, a discount rate of 8.2 % and 8.53 %, and a growth discount of 1.0 %.
11. Share of income attributable to non-controlling interests
As in the previous year, shares in income attributable to non-controlling interests related to the Hotels division.
70
71
Other intangible assets
As at 01.01.2011
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
26,598
– 19,921
6,677
Acquisition costs and write-downs developed as follows, categorized by group.
Undeveloped land
Additions
Adjustments
1,039
–
1,039
124
3
127
2,455
– 2,758
– 303
– 43 43 – Transfers
575
–
575
Disposals
– 316
311
– 5
30,432
– 22,322
8,110
As at 31.12.2011
– 21
3
– 18
Additions
2,390
– 3,309
– 919
Transfers 700
– 700
Disposals
– 21
21
–
33,480
– 25,607
7,873
As at 31.12.2012
As at 01.01.2011
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
10,590
– 2,820
7,770
3,971
–
3,971
475
–
475
15,036
– 2,820
12,216
– 86
–
– 86
Disposals
– 65
51
– 14
14,885
– 2,769
12,116
Acquisition
costs
Write-downs
Carrying
amount
Developed land
TEUR
TEUR
TEUR
As at 01.01.2011
484,683
– 116,249
368,434
10,291
–
10,291
930
– 78
852
1,735
– 9,049
– 7,314
Transfers / IFRS 5
– 17,377
8,065
– 9,312
Disposals
– 33,635
12,775
– 20,860
As at 31.12.2011
446,627
– 104,536
342,091
As at 31.12.2011
As at 31.12.2012
As in the previous year, there were no non-scheduled write-downs on intangible assets.
2. Tangible assets
Additions
Tangible assets are structured as follows.
Undeveloped land
Developed land
Aircraft
Technical equipment, operating and business equipment
Payments on account, assets under construction, pre-construction costs
31.12.2012
31.12.2011
TEUR
TEUR
12,117
12,216
342,190
342,091
– 212
16
– 196
6,199
– 8,736
– 2,537
5,309
5,792
Additions
76,844
71,039
Transfers
2,889
–
2,889
3,549
4,618
Disposals
– 323
266
– 57
440,009
435,756
455,180
– 112,990
342,190
Some of the tangible assets are pledged as collateral on loans. The remaining aircraft in the tangible assets is chartered.
There is no intention to sell this aircraft.
72
As at 31.12.2012
The transfer of developed land during the financial year relates mainly to refurbishment work carried out in a German
hotel and the completion of conversion work within the Seafood division.
Of land with a total residual carrying value of TEUR 342,190 (previous year: TEUR 342,091), TEUR 106,246
(previous year: TEUR 110,005) was pledged as collateral on bank loans on the balance sheet date.
73
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
As at 01.01.2011
3,332
– 832
2,500
– 8,431
Additions
8,642
–
8,642
157,055
– 137,698
Write-ups
– 8
–
– 8
– 99,347
62,407
– 36,940
Transfers
– 6,337
–
– 6,337
19,320
– 13,528
5,792
Disposals
– 179
–
– 179
As at 31.12.2011
5,450
– 832
4,618
Additions
6,902
–
6,902
Transfers
– 7,971
– – 7,971
4,381
– 832
3,549
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
413,420
– 224,559
188,861
Additions
–
– 8,431
Disposals
– 294,753
Aircraft
As at 01.01.2011
Transfers / IFRS 5
As at 31.12.2011
Additions
As at 31.12.2012
–
– 483
– 483
19,320
– 14,011
5,309
The disposal in the previous year resulted from the scheduled sale of 11 aircraft. The remaining four aircraft will be
disclosed under Transfers / IFRS 5 pending sale. Two further aircraft from the inventory of the discontinued division
were sold during the current business year. The remaining asset is a chartered aircraft which is, therefore, not available
for disposal.
Technical equipment, operating and
business equipment
As at 01.01.2011
Acquisition
costs
Write-downs
Carrying
amount
TEUR
TEUR
TEUR
179,369
– 139,642
39,727
22,898
–
22,898
Payments on account, assets under construction,
pre-construction costs
As at 31.12.2012
Non-scheduled write-downs and write-ups on tangible assets totaled TEUR 143 (previous year: TEUR 659).
3. Investment property
The balance-sheet amount can be broken down as follows.
Land with residential buildings
Land with offices and other buildings
2,993
– 490
2,503
15,031
– 14,284
747
Buildings on third-party land
Adjustments
1,241
– 870
371
Land with third-party building leases
Transfers
6,367
– 774
5,593
Disposals
– 13,113
12,313
– 800
As at 31.12.2011
214,786
– 143,747
71,039
Additions
– 541
148
– 393
Additions
20,577
– 18,319
2,258
Write-ups
– 144
–
– 144
Transfers
4,381
–
4,381
Disposals
– 4,365
4,068
– 297
As at 31.12.2012
234,694
– 157,850
76,844
Assets under construction
31.12.2012
31.12.2011
TEUR
TEUR
150,203
154,986
1,806,812
1,552,455
320
250
45,461
42,025
–
511
2,002,796
1,750,227
Investment property is measured at fair value. Measurement of fair value is based on the discounted cash flow (DCF)
method according to the International Valuation Standards, via which present values are calculated dynamically. Taxes,
capital costs, and any block discounts or surcharges are ignored.
By and large, the transfers arise from the completion of renovation work in several German hotels.
Of technical and other equipment, operating and business equipment with a total residual carrying value of TEUR
76,844 (previous year: TEUR 71,039), TEUR 0 (previous year: TEUR 126) was pledged as collateral on bank loans on
the balance sheet date.
74
75
The carrying amounts developed as follows.
The aggregated financial information for the associates was as follows.
2012
Value 01.01.
2011
TEUR
TEUR
1,750,227
1,594,134
31.12.2012
TEUR
TEUR
Assets
656,825
631,444
Liabilities
413,951
410,787
604,542
591,141
17,749
7,046
Additions
221,088
43,531
Proceeds
Transfers
–
– 1,920
Profit or loss for the period
Disposals
– 6,629
– 5,825
Change in market value
38,110
120,307
2,002,796
1,750,227
Value 31.12.
The additions in the reporting year resulted mainly from the purchase of an item of property in Munich and from construction costs for new builds on land in our portfolio in Munich and Berlin. The disposals largely involve the sale of
various properties in Leipzig, Dresden and Munich.
By the end of the year, significant contractual obligations to buy, construct or develop investment property existed on
the customary scale. On the balance-sheet date, the group held investment property secured by mortgages to the value
of EUR 1,655 million (previous year: EUR 1,515 million).
This real estate generated rental income of TEUR 100,289 (previous year: TEUR 93,416). The principal underlying
contracts, some of which feature renewal options, are usually concluded for a term of between five and ten years.
The rental income is offset by directly attributable costs of TEUR 24,137 (previous year: TEUR 33.316).
The decision in the previous year to dispose of our stakes in aovo Touristik AG and design hotels AG went ahead as
planned in the year under review.
On 31 December 2012, our interest in Son Vida S.A., Palma de Mallorca, Spain was included in the consolidated
financial statement for the first time using the equity method. The result of this first full-year inclusion of TEUR 1,662
was recognized in the income statement in the current business year.
Unrecognized proportional losses of TEUR – 746 (previous year: TEUR – 1,397) were generated by participating interests in the field of construction and real estate in the reporting year. Unrecognized proportional losses totaled TEUR
– 2,403 (previous year: TEUR – 1,785).
With the exception of Son Vida S. A., the financial information of all equity-accounted companies listed refer to an
effective date of 31 December 2012.
5. Other financial assets
4. Equity-accounted participating interests
The equity-measured interests are as follows, arranged by division.
31.12.2012
Beverages division
Hotels division
31.12.2011
TEUR
TEUR
142,383
134,244
3,063
836
230
1
145,676
135,081
Participating interests are measured according to the proportional equity of the subsidiary. The income of TEUR
17,534 (previous year: TEUR 9,188) resulting from the updated carrying values of participating interests was
recognized in the income statement under income from equity-accounted interests.
76
31.12.2011
31.12.2012
31.12.2011
TEUR
TEUR
Equity interests in affiliates
191
191
Other participating interests
21
21
Securities held as fixed assets
29
1,251
Other loans
460
303
Carrying amount
701
1,766
6. Deferred tax assets
Please refer to the section on accounting and valuation methods and the notes to the income statement under II.A.9 for
an explanation of deferred tax assets.
77
7. Inventories and biological assets
Unit of
measurement
31.12.2012
31.12.2011
TEUR
TEUR
Saltwater (current)
23,028,565 kg
6,127
5,126
Freshwater (non-current)
13,490,642 Units
Undeveloped land
67,221
37,059
Pre-construction costs
14,330
9,541
Biological assets
64,327
47,816
Land with unfinished buildings
87,720
80,387
Land with finished buildings
42,228
61,628
Other
37,183
29,337
319,136
270,894
5,490
9,693
Raw materials and supplies
Of which non-current
The unfinished goods and services relate mainly to building land intended for sale. In past years, write-downs on
unfinished goods and services totaling EUR 1.572 million have been undertaken for reasons of commercial prudence
pending adoption of the new construction plan for Palma de Mallorca. The adjustments relate to the Puigforfila land
holding.
Write-downs on inventories totaling TEUR 987 (previous year: TEUR 124) and write-ups of TEUR 1,560 (previous
year: TEUR 1,479) were undertaken in the context of loss-free valuation and disclosed under “cost of sales”. Writedowns on inventories totaling TEUR 3,189 (previous year: TEUR 0) were undertaken in the context of the loss-free
valuation of biological assets not measured at fair value.
Production
costs
Fair-value
adjustment
Market price
adjustment
Total
TEUR
TEUR
TEUR
TEUR
76,396
– 14,369
– 3,189
58,837
5,490
–
–
5,490
81,886
– 14,369
– 3,189
64,327
Production
costs
Fair-value
adjustment
Market price
adjustment
Total
TEUR
TEUR
TEUR
TEUR
36,342
1,781
–
38,123
9,693
–
–
9,693
46,035
1,781
–
47,816
Biomass as at 31.12.2012
Unit of
measurement
Biomass as at 31.12.2011
Saltwater (current)
12,086,500 kg
Freshwater (non-current)
23,654,585 Units
2012
2011
TEUR
TEUR
Biological assets as at 01.01. (previous year: 01.07.)
47,816
36,627
Additions
93,246
61,654
– 58,801
– 59,135
– 3,189
–
– 14,745
8,670
64,327
47,816
Sales / disposals
Impairment assets, measured at cost
Fair-value adjustment based on live weight
Biological assets as at 31.12.
The structure and development of the biological assets is as follows.
Salar, Coho, salmon trout
Eggs, smolts
31.12.2012
31.12.2011
TEUR
TEUR
58,837
38,123
5,490
9,693
64,327
47,816
Borrowing costs to the tune of TEUR 1,323 (previous year: TEUR 920) were capitalized. The underlying interest rate
was 3.36 % in the year under review, compared with 4.1 % in the previous year. Land held as inventories with a value
of TEUR 42,170 (previous year: TEUR 10,370) is secured by way of mortgage.
8. Trade-account receivables
31.12.2012
31.12.2011
TEUR
TEUR
4,012
7,544
161
538
1,434
1,170
Other trade-account receivables
39,035
34,357
Gross amount
44,642
43,609
Less individual value adjustments
– 3,571
– 3,607
Carrying amount
41,071
40,002
Receivables from the disposal of land holdings
Receivables from general contracting
Receivables from rental agreements
78
79
The individual value adjustments developed as follows.
The value adjustments developed as follows.
2012
2011
2012
2011
TEUR
TEUR
TEUR
TEUR
3,607
3,196
2,799
3,518
2
– 4
36
– 62
Usage
– 692
– 627
Usage
– 1,716
– 617
Release
– 951
– 213
Release
– 142
– 64
88
24
1,065
2,799
31.12.2012
31.12.2011
TEUR
TEUR
As at 01.01.
Exchange rate fluctuations
As at 01.01.
Additions
1,605
1,255
Additions
As at 31.12.
3,571
3,607
As at 31.12.
A broad customer base that does not lend itself to correlation means that there is no significant concentration of credit
risk. In addition, as in the previous year, there are no financial receivables that are past due date and not impaired.
Trade-account receivables will include future receivables from construction contracts in cases where the manufacturing costs incurred including shares of profits exceed the advance payments received. This was the case neither in 2012
nor in 2011.
The trade-account receivables include receivables amounting to TEUR 0 (previous year: TEUR 7,410) pledged as collateral for overdraft facilities.
11. Cash and cash equivalents
9. Tax refund claims
12. Equity capital
Cash in hand
Deposits with credit institutions
349
275,027
99,961
275,376
31.12.2012
31.12.2011
TEUR
TEUR
Corporation tax
340
460
Trade tax
215
513
31.12.2012
31.12.2011
555
973
TEUR
TEUR
92,033
92,033
1,157,482
1,062,980
59,071
104,405
According to IAS 32 (revised), limited partners’ capital, joint provisions and the profit for the year are recognized in
IFRS equity. The group’s equity capital is structured as follows.
Limited partners’ capital
Provisions
10. Other receivables and assets
Consolidated result
31.12.2012
31.12.2011
TEUR
TEUR
Receivables from shareholders
9,084
756
Receivables from subsidiaries and related parties
3,684
5,424
Non-current rent receivables
3,104
2,234
Sales tax / other taxes
4,981
4,554
983
2,717
3,098
3,243
Other receivables. accruals
14,454
9,753
Gross amount
39,388
28,681
Less individual value adjustments
– 1,065
– 2,799
Carrying amount
38,323
25,882
6,117
10,038
Creditors with debit balances
Advance commission payments
80
362
99,599
Shares of other shareholders
139
365
1,308,725
1,259,783
In addition to payments from shareholders and the compensatory item for currency translation, the provisions include
the cumulative results as well as unrealized profits and losses net of deferred taxes.
The consolidated result reported in the income statement includes minority interests.
SHKG does not have to comply with any laws on capital adequacy. Within the framework of its capital structure
management program, the group strives to maintain an adequate equity ratio, which was 41.6 % on the balance-sheet
date (previous year: 41.4 %).
81
13. Deferred tax liabilities
The following amounts were recognized in the income statement.
Please refer to the section on accounting and valuation methods and the notes to the income statement under II.A.9 for
an explanation of deferred tax liabilities.
Current service expense for services provided by employees
31.12.2011
TEUR
TEUR
68
– 458
2,212
2,265
–
– 43
120
1,528
2,400
3,292
14. Provisions for pensions
Interest charges
Provisions for pension obligations are set up on the basis of pension commitments relating to retirement, invalidity and
surviving dependants, and comprise obligations arising from pension benefits and for ongoing payments to eligible
active and former employees. Obligations arising from occupational retirement benefits are measured according to the
Projected Unit Credit Method pursuant to IAS 19, whereby future obligations are measured on the basis of the benefit
entitlements acquired up to the balance-sheet date.
Recognized actuarial gains / losses
The interest expenses included in pension costs are allocated to the individual function areas or to “other operating
expenses”.
Pension obligations are calculated based on the following actuarial assumptions.
Pension provisions recognized in the balance sheet changed as follows.
Disposals
31.12.2012
31.12.2011
2012
2011
TEUR
TEUR
45,315
45,142
2,400
3,336
835
–
–
– 43
Pension payments
– 3,219
– 3,120
Provisions for pensions as at 31.12.
45,331
45,315
31.12.2012
31.12.2011
TEUR
TEUR
1,183,852
960,675
151,888
308,910
1,335,740
1,269,585
Future wage / salary increases
3.00 %
3.00 %
Future pension increases
2.00 %
2.00 %
Guaranteed interest rate
3.25 %
4.80 %
Fluctuation rate
0.00 %
0.00 %
Provisions for pensions as at 01.01.
Pension plan expenses
Other allocations to pension plans
Biometric mortality rates were calculated on the basis of the 2005 G mortality tables compiled by Prof. Dr. Klaus
Heubeck. Pension provisions for the last five balance-sheet dates were calculated as follows based on the present value
of the anticipated defined benefit obligations.
Present value of defined benefit
obligations (DBO)
Unrecognized actuarial gains and
losses
Provisions for pensions
31.12.2012
31.12.2011
31.12.2010
31.12.2009
31.12.2008
TEUR
TEUR
TEUR
TEUR
TEUR
56,593
47,907
50,050
47,307
40,449
– 11,262
– 2,592
– 4,908
– 1,797
6,581
45,331
45,315
45,142
45,510
47,030
Actuarial gains and losses arise from portfolio changes and deviations of the actual trends from the original calculation
parameters. These gains and losses are not recognized as income or expense unless they exceed 10 % of the cash value
of the accrued pension claims or the fair value attributable to the plan assets, whichever is the higher. In accordance
with the provisions set out in IAS 19, this maximum amount is allocated over the expected average remaining working
lives of the employees and recognized as appropriate in the balance sheet and income statement.
82
31.12.2012
Disposals
15. Financial liabilities
Non-current
Current
The financial liabilities as at 31 December 2012 mainly comprised payables to banks. Of these, TEUR 1,304,473
(previous year: EUR 1,225,332) is secured by mortgage and TEUR 0 (previous year: TEUR 4,510) via the pledging of
bank-guaranteed promissory notes. For the most part, the current and non-current bank loans are subject to fixed rates
of interest. The other loans are subject to variable interest rates which are, in part, hedged against the risk of interest
rate fluctuations via interest rate swaps.
83
16. Trade-account payables
19. Other provisions
The balance-sheet amount can be spread across the divisions as follows.
The non-current provisions are mainly liabilities with terms of up to five years, and consist of the following.
31.12.2012
31.12.2011
31.12.2012
31.12.2011
TEUR
TEUR
TEUR
TEUR
5,103
8,416
Guarantees
4,961
5,239
Hotels division
5,657
4,224
Employee anniversary obligations
2,135
2,040
69,900
30,807
–
823
792
3,447
81,452
46,894
Seafood division
Other
17. Income taxes
Provisions for taxation
Liabilities from corporation tax
Rental guarantees
Prime tenancies
31.12.2012
31.12.2011
TEUR
TEUR
8,683
2,126
293
–
8,976
2,126
18. Other liabilities
01.01.2012
TEUR
TEUR
141,772
131,576
Liabilities with regard to subsidiaries and related parties
49,600
45,828
Advances received from purchasers
45,305
83,226
Prepayments and accrued income
5,822
4,632
Liabilities with regard to sales tax and other taxes
5,249
6,748
Other advances received
4,095
5,874
Liabilities with regard to shareholders
3,109
31,866
92
1,577
Debtors with credit balances
Other liabilities
13
2,288
1,048
300
40,211
8,151
296,316
322,066
39,246
12,036
The “shares of outside shareholders” item relates to SHKG’s majority shareholder. The IASB has clarified that minority interests in subsidiary partnerships must be treated as borrowed capital (liabilities) within the group. By the same
token, interests held by outside shareholders must be disclosed at fair value under “other liabilities”. The fair value
is the market value of the payment obligation in the case of termination of the interests at the corresponding balancesheet date.
84
Usage
Release
Additions
31.12.2012
TEUR
TEUR
TEUR
TEUR
8,304
– 2,605
– 1,530
12,810
16,979
13,205
– 11,519
– 335
12,038
13,389
6,762
– 2,729
– 2,032
252
2,253
11,123
– 8,543
– 1,101
8,636
10,115
599
– 488
– 280
391
10,669
– 4,978
– 65
2,528
8,154
Employee anniversary obligations
2,089
– 66
– 54
187
2,156
Other
9,039
– 4,620
– 2,269
5,667
7,817
Total
61,790
– 35,548
– 7,386
42,398
61,254
Employee-related obligations
Rental guarantees, prime tenancies
Guarantees
31.12.2011
Other trade liabilities
9,886
TEUR
Construction costs
Early retirement
31.12.2012
Liabilities arising from the purchase of land
1,784
The other provisions developed as follows in the course of the financial year.
Outstanding invoices
Shares of outside shareholders
33
7,129
Usage in the course of the business year include transfers amounting to TEUR 0 (previous year: TEUR 6,647) resulting
from reclassification in line with IFRS 5. The additions in the course of the business year include accrued interest of
TEUR 661 (previous year: TEUR 3,675). The change in the discount rate compared with the previous year resulted in
a drop in income of TEUR 35 (previous year’s fall in income: TEUR 14).
20. Financial instruments
The abbreviations used to denote the individual IAS 39 valuation categories in this section are as follows.
Loans and receivables
A-LR
Held-to-maturity investments
A-HM
Available-for-sale financial assets
A-AS
Financial assets at fair value through profit or loss
A-FV
Financial liabilities measured at amortized cost
L-AC
Financial liabilities at fair value through profit or loss
L-FV
85
The table below shows how financial assets and liabilities and certain items on the balance sheet are assigned to
IAS 39 valuation categories, along with the appropriate carrying amounts and fair values.
Measurement
category under
IAS 39
Balance-sheet item as at 31.12.2012
Carrying
amount
Fair value
TEUR
TEUR
A-AS
50
50
A-LR 460
460
A-FV
–
–
A-HM
191
191
A-LR
41,071
41,071
Other receivables and assets
A-LR
16,930
16,930
n. a.
99,961
99,961
Financial liabilities
L-AC
1,304,596
1,345,754
L-AC
81,452
81,452
Other liabilities
L-AC
90,766
90,766
Derivatives with hedge relationship
n. a.
5,718
5,718
Derivatives without hedge relationship
L-FV
25,426
25,426
The previous year resulted in the following assignment.
Held-to-maturity investments (A-HM)
Available-for-sale financial assets (A-AS)
Financial assets at fair value through profit or loss (A-FV)
Financial liabilities measured at amortized cost (L-AC)
Financial liabilities at fair value through profit or loss (L-FV)
Balance-sheet item as at 31.12.2011
TEUR
TEUR
58,461
57,934
191
191
50
655
–
615
1,476,814
1,389,477
25,426
23,624
As cash and cash equivalents, trade-account receivables, other assets, and trade-account payables and other liabilities
predominantly have short residual terms, their carrying amounts at the balance-sheet date correspond to the fair value.
The fair values of financial liabilities with regard to banks are calculated as the net present value of the payments
associated with the liabilities, based on the relevant yield curve in each case. The fair value of derivatives in existence
on 31 December 2012 is based on the market values of comparable financial instruments at the balance-sheet date, i.e.
on inputs other than price, but which can nonetheless be indirectly monitored. Interest rate swaps are measured according to level 2 of the hierarchy for the fair-value measurement of financial instruments.
Liabilities in category L-FV (financial liabilities at fair value through profit or loss) were designated as such “upon
initial recognition”.
Carrying
amount
Fair value
TEUR
TEUR
Income through use of the fair-value option (derivatives)
A-AS
655
655
Impairments
A-LR 303
303
Reversals
A-FV
615
615
A-HM
191
191
Collection of receivables written off
A-LR
40,002
40,002
Other receivables and assets
A-LR
17,629
17,629
n. a.
275,376
275,376
Financial liabilities
L-AC
1,241,234
1,302,580
L-AC
46,895
46,895
Other liabilities
L-AC
101,348
101,348
Derivatives with hedge relationship
n. a.
4,727
4,727
Derivatives without hedge relationship
L-FV
23,624
23,624
31.12.2012
31.12.2011
TEUR
TEUR
– 9,700
– 8,139
– 527
– 132
264
258
– 1,221
– 108
Other operating income from assets of categories A-LR, L-AC
Cash
31.12.2011
The following net results were recorded for the various measurement categories.
Measurement
category under
IAS 39
86
31.12.2012
Loans and receivables (A-LR)
Cash
Summarized in accordance with IAS 39 measurement categories, the following picture emerges for the carrying values.
Write-offs
853
112
– 431
– 592
– 10,762
– 8,601
87
C. Notes to the cash flow statement
The residual terms of the financial liabilities are as follows.
31.12.2012
31.12.2011
TEUR
TEUR
Up to 1 month
41,898
51,620
1 to 3 months
4,353
4,409
3 to 12 months
105,034
252,882
1 to 5 years
599,310
550,888
Over 5 years
585,145
409,786
1,335,740
1,269,585
The cash flow statement shows the payment streams for the business year and the previous year, categorized by cash
used and received for operating, investing and financing activities. Effects of changes to the group and to foreign
exchange rates on cash flows are shown separately.
The “cash flow-relevant change in net working capital” item relates to changes in inventories, trade-account receivables, and other assets and liabilities, less non-interest-bearing liabilities.
Investment activities comprise disbursements for additions to intangible assets, as well as proceeds from the disposal
of such assets.
Cash flow from financing activities comprises payments to shareholders, as well as financial liabilities redeemed or
newly raised with banks and affiliates.
Trade-account payables and other liabilities predominantly have short residual terms.
The group expects to pay the following interest on its financial liabilities during the residual terms of its loans.
Effective interest rate
The cash fund (cash and cash equivalents) includes checks, cash in hand and credit with banks (liquid assets), and is
divided into ongoing and discontinued business operations.
31.12.2012
31.12.2011
31.12.2012
31.12.2011
TEUR
TEUR
TEUR
TEUR
3.14 %
3.83 %
99,961
275,376
–
15,096
99,961
290,472
Ongoing operations
Discontinued operations
Up to 6 months
22,232
26,547
6 to 12 months
28,034
28,190
1 to 2 years
42,372
44,343
2 to 5 years
84,068
81,805
Over 5 years
52,537
47,685
229,243
228,570
The interest payment forecast is based on the relevant yield curve valid at the balance-sheet date. The other financial
liabilities will give rise to interest of EUR 31,500 only, and will trigger an interest payment of TEUR 3,031 in 2014.
Up to the 2010 financial year, the lion’s share of the group’s business was transacted in eurozone countries. Exchange
rate fluctuations had an impact on equity and income only with respect to BIAL. However, disclosure of the Aircraft
Leasing division as a discontinued operation on the balance sheet and the resulting drop in business activity mean that
the effect on the holding will be negligible from 2011 on. Since July 2011, however, the business activity of the group’s
Chilean subsidiaries has meant that exchange rate fluctuations have started to affect group equity and income. A 10 %
rise in the USD / EUR exchange rate would cause the result for the financial year to improve by TEUR 3,325 (previous
year: TEUR 8), whereas a 10 % fall would cause the result for the year to deteriorate by TEUR 2,414 (previous year:
TEUR 91).
Aggregated across all group divisions, a 1 % rise in interest rates would have caused the result for the financial year to
improve by TEUR 4,843 (previous year: TEUR 8,357), while a 1 % fall in the interest rate would have caused the result
to deteriorate by TEUR 5,401 (previous year: TEUR 8,788). In both cases, equity capital would be directly affected to
the tune of TEUR + 1,442 and TEUR – 1,538 respectively. The effect on the holding and its direct subsidiaries would
be negligible.
88
Cash amounting to TEUR 0 (previous year: TEUR 7,077) is not at the group’s disposal.
In the business year under review, the net cash flows were divided into ongoing and discontinued business operations
as follows.
Ongoing
operations
Discontinued
operations
Total
TEUR
TEUR
TEUR
26,523
– 6,050
20,473 – 251,567
17,976
– 233,591
Cash flow from
Business operations
Investment operations
Financing operations
23,265
–
23,265
– 201,779
11,926
– 189,853
89
The break-down for the 2011 financial year was as follows.
The following obligations with regard to finance leasing agreements existed in the previous year.
Ongoing
operations
Discontinued
operations
Total
Minimum lease
payment
Present value
Discount
TEUR
TEUR
TEUR
TEUR
TEUR
TEUR
Due in one year or less
1,890
1,609
281
Due in more than 1 but less than 5 years
4,435
4,143
291
6,324
5,752
572
Cash flow from
Business operations
– 57,263
– 2,647
– 59,910
Investment operations
– 35,085
185,642
150,557
71,136
– 91,930
– 20,794
– 21,212
91,065
69,853
Financing operations
III. Other disclosures
B. Notes to the leasing agreements
A. Contingent liabilities, other financial obligations
Contingencies arising from guarantees, bill commitments and warranty agreements existed to the tune of TEUR 4,534
(previous year: TEUR 14,006) at the balance-sheet date.
Contingencies with regard to consolidated subsidiaries did not exist.
Other financial obligations amounting to TEUR 291,372 (previous year: TEUR 309,806) predominantly related to
rental and lease agreements.
31.12.2011
TEUR
TEUR
19,160
18,866
72,843
86,738
199,369
204,202
291,372
309,806
Rent payments from operating leasing agreements are included in the functional expenses.
The following additional obligations exist with regard to finance leasing agreements.
90
31.12.2011
TEUR
5,970
5,565
–
11,535
31.12.2012
Due in over five years
The group operates as lessor of the aircraft on its balance sheet. At the balance-sheet date, forward minimum lease
payments from operating leasing relationships without early cancellation rights amounted to the following.
Due in over five years
The liabilities arising from leasing and rental agreements are as follows, arranged by due date.
Minimum lease
payment
Present value
Discount
TEUR
TEUR
TEUR
1,983
1,860
123
3,168
3,008
160
5,151
4,868
283
The finance leasing agreements mainly relate to technical equipment and furnishings.
Within the context of its business activities, the group is involved in court litigations. These are not, however, expected
to have any significant negative impact on its earnings, assets and financial position. The net carrying amounts of
leased assets amounted to TEUR 5,197.
In the reporting period, all rental payments were recognized as income from the discontinued division in accordance with
IFRS 5.
C. Financial instruments and risk management
In the course of its business operations and on account of the financial instruments it uses, the group is faced with
various kinds of risk. These include market risks (pricing risks), and credit and liquidity risks. Financial instruments
include financial assets and liabilities, as well as contractual entitlements and liabilities relating to the exchange or
transfer of financial assets.
Primary financial instruments on the assets side of the balance sheet include liquid assets, trade receivables and
financial investments, while on the liabilities side, financial instruments include liabilities to banks, trade payables
and other liabilities.
Market risks affecting the group mainly concern the risks pertaining to fluctuations in interest rates and foreign
currency exchange rates. Where variable interest rates have been agreed for trade payables and bank loans, there exists
the possibility that interest rates will rise as well as fall, leading to higher interest payments and charges.
Changes to the market interest rate applicable to fixed-interest, primary financial instruments are recognized in profit and loss only if the instruments are carried at fair value. Thus, all fixed-interest financial instruments carried at
91
amortized cost are not subject to interest rate risks within the meaning of IFRS 7. The pricing risks pertaining to the
loans portfolio are determined with the aid of a risk assessment system on the basis of current interest rates.
Various measures are taken to limit risk, such as separating trading, administration, accounts and control processes
in the organizational sense, and ongoing reporting of relevant events on the basis of market values and interest risks
within the framework of the risk management system. Furthermore, we limit interest rate risks to some degree by
conducting hedging transactions. Subject to an assessment of the risk, the divisions also make use of select derivative
instruments.
By the closing date, the group’s Construction & Real Estate division had concluded interest hedging agreements with a
nominal value of EUR 243 million falling due by 2016. The interest hedging agreements have a negative market value
of TEUR –25.425 (previous year: TEUR –23,624) recorded under “liabilities from swap transactions”. In Spain, the
Hotels division has concluded interest rate swaps in order to hedge the interest rate risk and these are carried as cash
flow hedges. The fair value of all hedging transactions in existence on 31 December 2012 was negative, amounting to
TEUR –5,718 (previous year: TEUR –4,727). The Seafood division has concluded a hedge to protect business against
the risk of currency fluctuation. The fair value of this hedging transaction on 31 December 2012 was positive, amounting to TUSD 416 (previous year: TUSD 1,063). Hedges are based on the market values of comparable financial instruments at the balance-sheet date. Effective changes in the fair values of derivatives are allocated to the consolidated
equity with a neutral effect on net income, while the ineffective part is recognized in profit or loss.
The international focus of our business activities calls for service transactions and cash flows to be effected in foreign
currencies. This gives rise to a certain risk of loss because assets held in a foreign currency will lose value as the exchange rate falls, while liabilities payable in a foreign currency become more expensive as the rate increases. Group
business in countries outside the eurozone is kept to a minimum and this has a corresponding effect on the currency
risk. In addition, we regularly evaluate our net exposure to currency risk, the aim being to maintain a balance between
income and expenditure in any foreign currency and thus to minimize the effect of any fluctuations in exchange rates.
Where necessary, we use suitable derivative financial instruments to hedge currency risks. By and large, the group’s net
assets tied in companies outside the eurozone are not hedged against fluctuations in currency exchange rates.
Generally, however, derivative financial instruments are used exclusively for hedging purposes in the context of interest rate and currency management, not for trading or speculative purposes. To reduce the risk of counterparty default,
we close transactions with select banks only. With regard to interest rate risks, please refer to the information on
interest payments and the analysis of sensitivity to interest rate changes contained in Section II.B.20 “Financial instruments”. We refer to Section II.B.20 also with regard to the effect foreign exchange risks have on the group’s result and
equity situation.
Credit risk relates to the potential for debtor default and any deterioration in credit worthiness (downgrading). The
group limits this risk by placing high demands on the solvency of its counterparties. Outstanding trade balances are
monitored continuously on a decentralized basis, while potential default risks are accounted for by both individual and
generalized value adjustments. The maximum default risk relates to receivables and financial assets and corresponds
to the carrying amounts in the balance sheet of these instruments. As well as financial planning based on a horizon
of several years, the group deploys a rolling system of liquidity planning to ensure that cash flows are permanently
aligned to outstanding payments in order to minimize the liquidity risk. What is more, prudent liquidity management
ensures that the group has adequate credit lines at its disposal to meet due payment obligations at any time.
92
D. Employees
The group’s annual average headcount was 4,082 (previous year: 4,091). Taking the Seafood division into account,
personnel expenditure was as follows for the period 1 July to 31 December 2012.
Wages and salaries
Social insurance contributions and voluntary social benefits
31.12.2012
31.12.2011
TEUR
TEUR
123,032
113,632
22,035
22,755
145,067
136,387
In accordance with IAS 19.46, the data on social insurance contributions include contributions to occupational pension
schemes.
E. Related-party disclosures
SHKG generated the following business volumes in conjunction with related parties.
2012
2011
TEUR
TEUR
365
375
13,648
12,666
Receivables from shareholders
9,084
756
Liabilities to shareholders
3,110
31,886
Receivables from subsidiaries and related parties
3,684
5,424
49,600
45,828
Goods and services received from subsidiaries
Goods and services supplied / rendered to subsidiaries
Liabilities to subsidiaries and related parties
Business relations with related parties and companies are based on contractual agreements. Services are rendered at
rates that are customary for transactions with third parties.
Related-party transactions and receivables / liabilities with regard to subsidiaries mainly involve associates in the
Beverages division.
F. Management
In its capacity as general partner, Josef Schörghuber Stiftung, Munich, is authorized and obliged to manage and represent Schörghuber Stiftung & Co. Holding KG. The general partner receives remuneration totaling EUR 6,200 p.a. plus
expenses for carrying out these management duties and assuming overall liability for business operations.
93
Interest
%
The general partner maintains a foundation board, the members of which are as follows.
Schörghuber Stiftung & Co. Holding KG
■■ Dr. Klaus N. Naeve, lawyer, Munich, since 2 January 2009
(chairman since 12 March 2009)
■■ Alexandra Schörghuber, businesswoman, Munich, since 25 November 2008
■■ Dr. Jürgen Büllesbach, engineer, Unterfoehring near Munich, since 15 April 2009
■■ Christoph Michl, engineer, Baldham near Munich, since 20 September 2012
■■ Roland Tobias, business economist, Munich, since 1 August 2009
1. Bayerische Hausbau GmbH & Co. KG, Munich
G. Auditors‘ fees
The fees of the auditors can be broken down as follows.
94.90
F
100.00
PTA
F
Lorenzistock GmbH, Munich
100.00
PTA
F
50.00
E
Lokstedt Baufeld 2 Beteiligungs GmbH, Hamburg
100.00
N
Bayerische Hausbau International GmbH, Munich
100.00
F
BHG Beruházó Kft., Budapest
100.00
F
BHG Hausbau Kft., Budapest
100.00
F
BHG München 2018 GmbH, Munich
100.00
N
Deutsche Hausbau GmbH & Co. KG, Munich
100.00
N
BHI Polska Sp. z. o. o., Warsaw
100.00
F
MOM-Bajor Kft., Budapest
50.00
N
MOM-Park Lakásépitö Bt., Budapest
49.90
E
HANSE HAUS GmbH, Oberleichtersbach
100.00
PTA
F
Elementar-Bau GmbH, Oberleichtersbach
100.00
PTA
F
HANSE HAUS CZ s. r. o., Prague
100.00
N
HANSE HAUS CH GmbH, Suhr
100.00
N
Come In-Haus GmbH, Oberleichtersbach
100.00
2012
2011
TEUR
TEUR
464
471
28
14
Bayerische Hausbau Immobilien GmbH & Co. KG, Munich
89.82
F
4
11
RESET Beteiligungs GmbH & Co. Vermietungs-KG, Munich
47.00
E
496
496
Y-Fünfzehn Verwaltungs GmbH, Munich
100.00
F
Bayerische Hausbau Immobilien Management GmbH, Munich
100.00
F
BHG Wohnbau GmbH, Munich
100.00
F
BHG Skyline Tower GmbH & Co. KG, Munich
100.00
F
BHG Spielbudenplatz GmbH & Co. KG, Munich
100.00
F
BHG Vermietung GmbH, Munich
100.00
F
BHG E GmbH, Munich
100.00
F
5.55
P
QMP Baufeld 6 GmbH & Co. KG, Munich
100.00
F
100.00
F
Auditing services in connection with the financial statements
Other certification services
Other services
H.Notes on affiliation to the parent group and on participatory
relationships
Participatory relationships are shown in the table below with an explanation of the abbreviations used.
94
P
Bayerische Hausbau Projektentwicklung GmbH, Munich
Lokstedt Baufeld 2 GmbH & Co. KG, Hamburg
The members of the foundation board received emoluments totaling TEUR 126 in the year under review (previous year:
TEUR 154). The sum of TEUR 5,432 (previous year: TEUR 5.864) was accrued in reserves to cover pension commitments to former members of the executive board and their surviving dependants.
The members of the executive board of the holding received emoluments totaling TEUR 3,993 (previous year: TEUR
2,979) in the year under review.
P
PTA
F
N
E
P
EN
Consoli
dation
Parent company
Profit-and-loss transfer agreement
Fully consolidated company
Non-consolidated subsidiary
Associate consolidated “at equity”
Participatory interest < 20 %, or without any material influence despite interest of > 20 %
Associate consolidated “at acquisition cost”
Immo 2018 GbR, Munich
PTA
N
100.00
F
Olympia Wohn Park GmbH & Co. KG, Grünwald
50.00
E
Olympia Wohn Park Verwaltungs GmbH, Grünwald
50.00
N
95
Interest
%
2. Brau Holding International GmbH & Co. KGaA, Munich
50.10
E
Interest
%
Bad Brambacher Mineralquellen GmbH & Co. Betriebs KG,
Bad Brambach
100.00
Vogtländische Getränkeindustrie GmbH, Bad Brambach
100.00
Brau Holding International Verwaltungs GmbH, Munich
100.00
Bad Brambacher Mineralquellen GmbH, Bad Brambach
85.00
Badische Brau Verwaltungs GmbH, Munich
100.00
Sohler Mineralbrunnen GmbH, Bad Brambach
100.00
Fürstlich Fürstenbergische Brauerei GmbH & Co. KG, Donaueschingen
100.00
Kulmbacher EKU Brauerei GmbH, Kulmbach
100.00
Brauerei Gesellschaft vorm. Meyer & Söhne AG, Riegel
100.00
PTA
Kulmbacher Mönchshof-Bräu GmbH, Kulmbach
100.00
PTA
100.00
PTA
Biedermann Getränke Verwaltungs GmbH, Donaueschingen
60.00
Zum Mönchshof-Bräuhaus GmbH, Brauereigaststätte, Kulmbach
Biedermann Getränke GmbH & Co. KG, Donaueschingen
60.00
Getränke Logistik SQ GmbH, Plauen
100.00
Privat-Brauerei Schmucker GmbH & Co. KG, Mossautal
100.00
Kulmbacher Reichelbräu GmbH, Kulmbach
100.00
Umhauer Getränke-Fachhandel GmbH i. L., Freiburg
100.00
Kulmbacher Sandlerbräu GmbH, Kulmbach
100.00
FGS Getränke Service GmbH, Donaueschingen
100.00
Coburger Biervertrieb GmbH, Coburg
100.00
Schweizerhof Getränke GmbH, Kulmbach
100.00
Scherdel Bier Beteiligungs- und Geschäftsführungs GmbH, Hof
100.00
Scherdel Bier GmbH & Co. KG, Hof
100.00
PTA
Würzburger Hofbräu GmbH, Würzburg
100.00
PTA
Keiler Bier GmbH, Lohr am Main
100.00
Privatbrauerei Hoepfner GmbH, Karlsruhe
Paulaner Brauerei GmbH & Co. KG, Munich
AuerBräu GmbH, Rosenheim
Chiemgauer Brauhaus GmbH, Rosenheim
Chiemgau Marken GmbH, Rosenheim
PTA
69.10
100.00
PTA
50.00
100.00
100.00
E
Consoli
dation
85.00
Paulaner Verwaltungs-GmbH, Munich
Südstar Getränke GmbH, March
51.00
3. Arabella Hospitality SE, München
100.00
F
Arabella South Africa Holding (Pty.) Ltd., Cape Town
100.00
F
PTA
Arabella Western Cape Hotel & Spa (Pty.) Ltd., Cape Town
100.00
F
100.00
PTA
Arabella Grand Hotel (Pty.) Ltd., Cape Town
100.00
F
100.00
PTA
Kovacs Investment 458 (Pty.) Ltd., Cape Town
100.00
F
75.00
Kovacs Investment 177 (Pty.) Ltd., Cape Town
100.00
F
Paulaner Bräuhaus Consult GmbH, Munich
100.00
The River Golf Company (Pty.) Ltd., Cape Town
100.00
F
Paulaner Brauhaus Singapore Pte. Ltd., Singapore
100.00
Arabella Hotel Holding GmbH, Munich
100.00
Paulaner Distribuzione S.r.l., Bolzano, Italy
100.00
Arabella Hoteles e Inversiones de España S. A., Palma de Mallorca
100.00
F
Paulaner Finanz S.r.l., Bolzano, Italy
100.00
Arabella Hospitality España S. L., Palma de Mallorca
100.00
F
Weißbierbrauerei Hopf GmbH, Miesbach
100.00
19.01
E
bios Süd GmbH, Munich
100.00
Son Vida Golf S. L., Palma de Mallorca
100.00
F
Vibelba S. L., Palma de Mallorca
100.00
F
51.00
F
Bayerische Hausbau Española S. L., Palma de Mallorca
100.00
F
Arabella Hotel Sachsen-Thüringen Besitz GmbH, Munich*
100.00
F
Arabella Hotelbetriebe AG, Davos
100.00
F
Fürstliche Brauerei Thurn und Taxis Vertriebsgesellschaft mbH,
Regensburg
100.00
PTA
Hacker-Pschorr Bräu GmbH, Munich
100.00
Interdrink Getränke-Vertriebs GmbH, Munich
BHI Vertriebsgesellschaft mbH, Munich
Paulaner USA LLC, Littleton, USA
Kulmbacher Brauerei AG, Kulmbach
96
Consoli
dation
PTA
63.29
Kulmbacher Getränke Beteiligungs GmbH & Co. KG, Kulmbach
100.00
Sternquell-Brauerei GmbH, Plauen
100.00
Braustolz GmbH, Chemnitz
100.00
Kulmbacher Getränke Beteiligungs- und Geschäftsführungs
GmbH, Kulmbach
100.00
Markgrafen Getränkevertrieb GmbH, Kulmbach
100.00
Bürgerliches Brauhaus Saalfeld GmbH, Saalfeld
23.00
Son Vida S. A., Palma de Mallorca
Agropecuaria Mallorquina S. A., Palma de Mallorca
PTA
ASH Hotels & Resorts GmbH i. L., Munich
PTA
Arabella Hotel Sachsen Besitz GmbH, Munich*
Golfpark Gut Häusern GmbH & Co. KG, Markt Indersdorf
Markgrafen Heimdienst GmbH, Kulmbach
100.00
PTA
Erfrischungs-Getränke Union GmbH, Kulmbach
100.00
PTA
Kulmbacher Kapuzinerbräu GmbH, Kulmbach
100.00
PTA
F
51.00
F
100.00
F
40.00
E
*The stakes in these subsidiaries amount to 94.8 % and 5.17 % for AHSE and BHGKG respectively.
97
4. Inversiones Stefal SpA, Santiago de Chile, Chile
Productos del Mar Ventisqueros S. A., Puerto Montt, Chile
Inmobiliaria Aleste Ltda., Santiago de Chile, Chile
Alimentos Bahia Chincui, S. A., Santiago de Chile, Chile
5. b.i.t.s. GmbH, Munich
Interest
%
Consoli
dation
Official notice of the exercising of the above rights was published in the electronic version of the Federal Gazette
(Bundesanzeiger).
100.00
F
99.99
F
99.11
F
The consolidated financial statement and the group management report as at 31 December 2012 were released for
publication by the chairman of the foundation board on 17 April 2013.
100.00
F
100.00
PTA
J. Events after the balance-sheet date
F
F
No events occurred after the balance-sheet date that had a material impact on the earnings, assets and financial position
of the group as detailed in the consolidated financial statement.
This report contains individual, forward-looking statements concerning the future course of business. These statements
are based on current assumptions and estimates which were carefully made on the basis of information available at
the present time. Due to residual risks and uncertainties, however, we cannot guarantee that these statements will ultimately prove correct, either individually or in their entirety.
100.00
F
10. Bayerische Hausbau Management GmbH, Munich
100.00
F
General Partner
Josef Schörghuber Stiftung, Munich
11. Bavaria International Aircraft Leasing Management GmbH,
Munich
100.00
F
12. Schörghuber Corporate Finance GmbH, Munich
100.00
6. Schörghuber Personalmanagement GmbH, Munich
100.00
7. Bavaria International Aircraft Leasing GmbH & Co. KG, Grünwald
100.00
8. Paulaner Brau Beteiligungs GmbH, Munich
100.00
9. Y-Sechzehn GmbH, Munich
PTA
F
F
PTA
PTA
F
Dr. Klaus N. Naeve
I. Disclosure / exemption
SHKG’s consolidated financial statement and the group management report as at 31 December 2011 were prepared according to IFRS accounting principles and submitted to the electronic version of the Federal Gazette (Bundesanzeiger)
prior to publishing on 27 August 2012.
Christoph Michl
Roland Tobias
The parent company, Schörghuber Stiftung & Co. Holding KG, Munich, and the following subsidiaries exercised
their right under Art. 264 para 3 and Art. 264 (b) of the German Commercial Code (HGB) not to present consolidated
financial statements.
■■
■■
■■
■■
■■
■■
98
Schörghuber Personalmanagement GmbH, Munich
Bavaria International Aircraft Leasing GmbH & Co. KG, Grünwald
Paulaner Brau Beteiligungs GmbH, Munich
b.i.t.s. GmbH, Munich
Schörghuber Corporate Finance GmbH, Munich
Arabella Hospitality SE, Munich
99
Auditors‘ report
Published by
We have audited the consolidated financial statement prepared by Schörghuber Stiftung & Co. Holding KG, Munich –
comprising the income statement, the statement of recognized income and expenses, the balance sheet, the cash
flow statement, the statement of changes in shareholders’ equity, and the notes – as well as the group management
report for the business year 1 January to 31 December 2012. Preparation of the consolidated financial statement and
the group management report in accordance with International Financial Reporting Standards (IFRS), as applicable
within the EU, and with the provisions set out in Art. 315a para 1 of the German Commercial Code (HGB) as
applicable, is the responsibility of the company’s legal representatives. Our task is, on the basis of our audit, to make
an assessment of the consolidated financial statement and the group management report.
Schörghuber Stiftung & Co. Holding KG · Communication & Marketing · Denninger Straße 165 · D-81925 München
Phone +49 89 9238-543 · Fax +49 89 9238-603 · [email protected] · www.sug-munich.com
Photographs by Gisela Schregle: Annual Report p. 5 / Beverages Special p. 3
Text for Beverages Special: Dr. Marion Schweiker · Concept/design: acm Werbeagentur, Munich
The consolidated financial statement has been audited in accordance with Art. 317 of the German Commercial Code
(HGB) in compliance with the generally accepted auditing principles of the Institute of German Certified Public
Accountants (IDW). These provide that the audit must be planned and conducted in such a way that any inaccuracies
or non-compliances in the consolidated financial statement – drawn up in accordance with generally accepted accounting principles – and in the group management report that might seriously distort the presentation of the company’s
earnings, assets and financial position, are detected with adequate certainty. The activities comprising the audit were
defined on the basis of the available knowledge on the group‘s fields of business, its legal and economic terms of
reference, and areas where errors might be expected to occur. In the course of the audit, the effectiveness of the group’s
internal accounting controls and the accuracy of the information contained in consolidated financial statement and
group management report are assessed mainly via random checks. The audit includes an assessment of the financial
statements of the companies included in the consolidated financial statement, the segregation of the consolidated
group, the accounting and consolidation principles used, and the significant estimates made by legal representatives, as
well as an evaluation of the general picture created by the consolidated financial statement and the group management
report. We believe that our audit represents a sufficiently reliable basis for assessment.
On the basis of our audit, we have no objections to raise.
According to our assessment based on the findings of our audit, the consolidated financial statement of Schörghuber
Stiftung & Co. Holding KG, Munich complies with International Financial Reporting Standards (IFRS), as applicable
within the EU, with the provisions set out in Art. 315a para 1 of the German Commercial Code (HGB), as applicable,
and with the complimentary rules laid down in the Articles of Association, and is a true and fair picture of the group’s
assets, earnings and financial position. The content of the group management report is in accord with the consolidated
financial statement. It is essentially a true reflection of the group’s present position, and is an accurate representation
of the opportunities and risks inherent in future developments.
Deloitte & Touche GmbH
Auditors
(Prof. Dr. Plendl) (Prosig)
AuditorAuditor
100
101
Latest news: all the activities of the four business
divisions in one Annual Report +++ Celebration:
magnificent topping-out ceremonies at the Joseph
Pschorr Haus Munich and Bikini Berlin +++ Powerful performance: Brau Holding International’s exports reach a record level of 1 million hectoliters +++
Fresh wind: The successful brand Aloft joins the
portfolio of hotels in Germany +++ Boom: The demand for salmon increases worldwide +++ Mastered
with bravura: the challenges faced in 2012 – thanks
to the commitment and dedication of our employees

all the activities of the four business divisions in one annual report +

Transcrição

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