Audited annual financial report 2013

Transcription

ATON GmbH, Munich
GROUP MANAGEMENT REPORT FOR THE
FINANCIAL YEAR 2013
(Translation – the German text is authoritative)
ATON GmbH, Munich – Group Management Report 2013
Contents
I.
The Group.........................................................................................................................................................3
1. Structure .....................................................................................................................................................3
2. Business segments ....................................................................................................................................3
3. Management...............................................................................................................................................7
4. Research and development .......................................................................................................................7
II. Macroeconomic development...........................................................................................................................8
III. Development of the business segments ....................................................................................................... 10
1. AT Tech ................................................................................................................................................... 10
2. AT Mining Tech ....................................................................................................................................... 11
3. AT Med Tech ........................................................................................................................................... 13
4. AT Aviation .............................................................................................................................................. 14
IV. Results of operations, financial and net assets position ............................................................................... 16
1. Results of operations ............................................................................................................................... 16
2. Financial position ..................................................................................................................................... 18
3. Net assets position .................................................................................................................................. 19
V. Employees ..................................................................................................................................................... 23
VI. Subsequent events ........................................................................................................................................ 24
VII. expected developments, opportunities and risks .......................................................................................... 25
1. Risks ........................................................................................................................................................ 26
2. Opportunities ........................................................................................................................................... 30
VIII.
Risks management system and accounting-related internal control ....................................................... 33
1. Management of risks and opportunities .................................................................................................. 33
2. Accounting-related internal control .......................................................................................................... 33
IX. Disclaimer ...................................................................................................................................................... 34
I.
THE GROUP
1.
Structure
ATON GmbH and its subsidiaries (collectively, the "Group") have a balanced portfolio of business activities.
The Group’s operating companies are organised on a global basis and have a presence in all continents with
core activities in the AT Tech, AT Med Tech, AT Aviation and AT Mining Tech business segments.
The ATON Group comprises the ATON GmbH, a corporation established under German law, and 145
(previous year: 141) subsidiaries in which ATON GmbH either holds an indirect or direct interest, primarily as a
majority shareholder; of which 129 (previous year: 123) are included in the consolidated financial statements of
ATON GmbH.
2.
Business segments
In the financial year 2013, the focus of the ATON Group its core activities, which had already been started in
prior years, has been continued. During the financial year 2013 the BFFT Group, based in Gaimersheim near
Ingolstadt, was acquired. The acquisition has led to a strengthening of the segment AT Tech in the future
market of electronics and electrics in the development of automotive technology. Furthermore in AT Tech, the
operational merger of the EDAG and Rücker Group has been started at the end of the financial year.
In the coming year, the Group will continue to develop the individual segments in line with their core
competencies by making strategic investments and selling off peripheral activities. In addition, the merger of
similar activities and the use of synergies will be in the focus of the financial year 2014. Our expectation is that
this will enhance the companies’ competitive advantage on the one hand and optimise the use of existing
resources on the other, thus further increasing creation of added value.
The organisational structure of the ATON Group with the operating units allocated to the relevant segments is
as follows as at 31 December 2013.
Page 3
ATON GmbH
100.00%
ATON Group
Finance GmbH
AT Tech
100.00%
AT Mining Tech
100.00%
AT Med Tech
100.00%
100.00%
EDAG GmbH
J.S. Redpath
Haema
Augsburg
& Co. KGaA
Holdings Inc.
AG
Airways GmbH i.L.
100.00%
100.00%
100.00%
100.00%
Rücker
Deilmann-Haniel
Ziehm
DC Aviation
GmbH
Mining Systems GmbH
Medical LLC
GmbH
100.00%
100.00%
BFFT Gesellschaft für
W.O.M. World of
Fahrzeugtechnik mbH
Medicine GmbH
100.00%
100.00%
FFT GmbH
Orthoscan
& Co. KGaA
Inc.
100.00%
Reform Maschinenfabrik
Adolf Rabenseifner
GmbH & Co. KG
66.67%
TSO Industrieanlagen
Planung und Vertrieb
GmbH
Page 4
AT Aviation
The services of the segment AT Tech cover in particular the areas of engineering and plant construction for the
automotive industry, along with other sectors of the mobility industry, as well as manufacturing of specialised
machine.
As one of the industry's largest independent development partners, the EDAG Group develops ready-forproduction solutions at 32 locations, both nationally and internationally.
The Rücker Group is a technology development company for the international automotive industrie as well.
The Rücker Group is headquartered in Wiesbaden and operates in more than 15 countries.
EDAG and Rücker are organised into the lines of business Product Development and Product Solutions.
Product Development offers engineering services globally, focusing on the automotive industry (manufacturers
as well as their suppliers). The service portfolio covers the key aspects of vehicle development and ranges from
styling, form-finding and modelling through package, body and interior/exterior design development to
electrics/electronics and the overall functional integration of systems into the vehicle. Production Solutions
deals with the design of production processes as well as the development of production facilities and thus,
represents a link between product design and plant construction.
The BFFT is a manufacturer independent service provider for the automotive industry. Its core activity
regarding the automotive industry is the development of system networks in electrics and electronics of
automobiles. In this segment, BFFT covers the development of non-inididualised hardware components for
automotive electronic systems, as well as the developments and testing of alternative driving systems.
The FFT Group develops turnkey body production and assembly lines for the manufacturers and
TIER1-suppliers of the automotive industry as well as for other non-automotive sectors. The company takes on
responsibility for the entire design and manufacturing process.
REFORM is a specialist designer of grinding machinery located in Fulda. Its product range spans from small
knife grinding machines for the pulp and paper industry to large-scale, CNC-controlled machinery for
processing machine engines in the aviation industry.
TSO designs, plans, manufactures and assembles customised machinery and equipment for non-food bulk
commodities and dusts. Through its tailored solutions, TSO is a competent partner when it comes to conveyor
and transport installations, load sensing equipment, doser and filtering technology in particular.
Page 5
The segment AT Mining Tech offers mining and shaft-sinking services and products worldwide.
The Redpath Group is a global mining service provider. The group's core competencies include contract
mining, shaft-sinking and equipment, maintenance and renovation, as well as the development, construction
and management of subsurface mines and installations.
Deilmann-Haniel Mining Systems is a specialist manufacturer of machinery for the realisation and
preparation of subsurface coal mines, as well as special applications for all subsurface mining operations.
The segment AT Med Tech develops solutions for the healthcare market in the fields of surgery and
diagnostics, specialising in X-ray diagnostics, basic medical diagnostics and minimally invasive surgery, as well
as products for the pharmaceuticals industry and hospitals.
Haema is the nationwide largest private blood donor service operating in the Federal Republic of Germany. It
operates 33 modern blood donation centres in the German federal states of Berlin, Brandenburg, Thuringia,
Mecklenburg-Western Pomerania, North Rhine-Westphalia, Saxony, Saxony-Anhalt and Schleswig-Holstein.
Blood and plasma donations taken from voluntary donors are processed into proprietary medical products or
transferred to plasma processing companies for handling. All blood products are subject to multiple testing in
highly efficient, modern laboratories so as to ensure compliance with the company's rigorous quality and safety
standards applicable to the proprietary medical products it manufactures.
Ziehm is specialised on the development, production and global marketing of mobile X-ray imaging systems
solutions known as C-arms. These systems are primarily used in surgical and emergency care settings. The
company also develops specialised equipment for endoscopic procedures. Moreover, Ziehm is considered as
an expert and technology leader in the market of C-arms. In 2013, with the new generation of Ziehm Vision
RFD Hybrid Edition, a mobile C-arm has been introduced, which is exactly tailored to the needs of the HybridOP.
OrthoScan is also leading in the market for mini C-arms used for orthopaedic extremity (hand and foot)
imaging. The use of modern flat detectors reduces distortions created by standard image enhancers.
OrthoScan's mini C-arms offer orthopaedic, casualty and hand and foot surgeons the solution they require for a
high-quality, X-ray imager with small dimensions to facilitate surgeries on small and delicate parts of the body,
such as wrists, knees and ankles. In 2012, with the Mobile DI product which was launched in 2012, the
company opened up a new market. The Mobile DI is an even more compact portable, low-dosage X-ray
imager, which can be used when rapid and effortless diagnostics of extremities are required. It is suitable for
use in orthopaedic practices, athletic sport teams and military units, among other applications.
W.O.M. WORLD OF MEDICINE is a pioneer of minimally invasive surgery. It is a leading manufacturer of
insufflators, which use CO² gas or liquids to expand body cavities for minimally invasive laparoscopic surgeries
via small openings rather than large incisions. Other key product areas include consumable supplies developed
specifically for the equipment, endoscopic cameras and the Gamma Finder® used in oncological diagnostics.
Page 6
The segment AT Aviation comprises regional and charter flight as well as business aviation.
Augsburg Airways primarily has operated wet leases for Deutsche Lufthansa's European business travel
segment. In autumn 2012, Deutsche Lufthansa terminated this agreement effective at the end of October 2013.
The company maintained regular flight traffic until that time. Since November 2013 the operative business
activities have been suspended. With the employee representatives social compensation plans were
negotiated. Since the suspension of the flight traffic, the business of the company concentrated on the disposal
of the remaining aircrafts.
DC Aviation, as operator and charterer, concentrates on aircraft technology for premium private jets,
particularly medium and long-haul. In 2013. DC Aviation defended its position as a key player by operating 30
aircrafts in the European business aviation. The DC Aviation brand strengthened its international presence in
2013 by opening the local infrastructure and start of the operations of DC Aviation Al Futtaim (49 % joint
venture in Dubai). By the complete acquisition of the companies Jet-Link AG und Heli-Link Helikopter AG,
headquarted in Zurich, a presence in the Swiss market was created. Due to these acquisitions DC Aviation was
able to enter the management of helicopters. As at year end 2013, two business jets and one helicopter were
operated in Zurich, so that the total number of aircrafts managed by the DC Aviation Group amounted to 30
aircrafts.
ATON Group Finance GmbH, Going/Austria is a 100 % subsidiary of ATON GmbH, which was founded on
4 October 2013. Main object of the company is intercompany financing. In November 2013, ATON Group
Finance GmbH has issued a bond of EUR 200,0 million in the Prime Standard at the German Stock Exchange
in Frankfurt Main. Guarantor for this bond is the ATON GmbH.
3.
Management
The ATON GmbH is a management holding company with extensive competencies regarding strategy and
financing. The management teams of the individual subsidiaries hold direct operative responsibility and act
within the scope agreed with the management of ATON GmbH in order to meet the financial and strategic
objectives. There is a constant exchange via a monthly reporting between the managing directors of the
subsidiaries and the holding company.
4.
Research and development
Several companies of the Group operate in technological fields that are constantly evolving. These companies
are primarily EDAG, Rücker, BFFT, FFT, Ziehm, OrthoScan, W.O.M and Deilmann-Haniel Mining Systems. In
order to differentiate from competitors and to keep up with the latest technological developments, these
companies individually operate research and development departments. Permanent development and
enhancement of the product portfolio is of great strategic importance in the industries of the companies. The
expenses of EUR 1.3 million in research and development (previous year: EUR 1.6 million) and the investment
EUR 2.0 million in development costs capitalised (previous year: EUR 1.0 million) emphasise the activities for
product development and product enhancement.
Page 7
II.
MACROECONOMIC DEVELOPMENT
The global economic growth was able to recover slowly in the year 2013. The development varied significantly
across countries. While the economy of many developed countries gained new momentum, growth has slowed
down considerably in many emerging countries compared with the past.
The global economic performance stabilised in 2013. After the global economy grew by 2.6 % in 2012, growth
maintained at a similar level at 2,5 % in 2013. The debt crisis in Europe continued to have a negative impact.
The European Central Bank (ECB) as well as the US central bank continued their policy of low interest rates.
The following overview presents the development of gross domestic product (GDP) in individual economic
regions.
in %
2013 *
2012
2011
2010
2009
Rest of world
2.5
2.6
3.0
4.2
- 1.9
Europe
0.3
-
1.9
2.3
- 4.2
Germany
0.6
1.0
3.1
4.0
- 5.1
North America
1.9
2.2
1.9
2.5
- 3.0
South America
2.6
2.6
4.0
5.8
- 1.6
Asia/Pacific
4.8
4.8
4.6
7.3
1.7
China
7.7
7.7
9.3
10.5
9.2
Middle East
2.7
3.3
5.0
5.9
1.3
Africa
3.5
5.0
1.1
4.7
2.7
Source: Global Insight World Overview, 15 January 2014.
* Forecast.
In the euro zone, the growth rate was 0.3 % for the year 2013 (previous year: 0.0 %), while great regional
disparities existed. The southern european debtor nations in the euro zone continued to suffer from negative
growth rates in the financial year, but to a lesser extent than in 2012. For the euro zone as a whole, the
recession that had persisted for six successive quarters and had it’s trough in the fourth quarter of 2012, came
to an end in the first half of 2013. In addition, government bond yields receded clearly in the countries most
affected by the sovereign debt crisis, which reduced their borrowing costs and put government budgets on a
more sustainable path. As governments kept tightening their budgets, fiscal austerity remained a drag on the
European economy. In contrast to the general trend, Germany experienced growth of 0.6 % (previous year:
1.0 %). However in 2013, German exports fell for the first time since the recession in 2009. The exports in 2013
were 0.2 % lower than in the previous year. In the financial year, the most important growth engine of the
German economy was the private consumption. This increased by 0.9 % (previous year 0.8 %) after correction
of inflation.
After a period of stagnation at the end of the previous year, the US economy picked up again in the first two
quarters of 2013, buoyed by consumer spending. However, the budget crisis in autumn 2013 again had a
negative effect on economic growth. Overall, the US economy grew by 1.9 % in the reporting year 2013
(previous year: 2.2 %).
Page 8
In the BRIC countries (Brazil, Russia, India and China) the reduced tendency of economic growth from the
previous year continued to slow down. In the first half of the year of 2013, the growth of the chinese economy
reduced again in comparison with the previous year and amounted to 7.5 % (previous year: 7.7 %). Besides,
the slowing economy of India had to deal with a current account deficit, high inflation and unresolved structural
problems, which caused foreign capital to exit the country. Also in Russia, the economic activity was weak in
2013.
The price of oil is one of the most important values in the commodity markets. After a price increase in the first
quarter of 2013, with prices just below USD 119/barrel, the price of a barrel of Brent sank again sharply in the
second quarter, falling below USD 100/barrel for a short time in April. In the second half of the year, the oil price
rose again significantly, at times reaching prices of USD 116/barrel. A barrel of Brent crude oil cost
USD 110.80/barrel at the end of the reporting year (previous year: USD 111.12/barrel); the average price of oil
for the year was approximately USD 108.73/barrel, or 2.6 % less than in the previous year (USD 111.68/barrel).
The inflation rate in the euro zone fell in 2013 to 1.7 % (previous year: 2.5 %). After a decrease of the reference
rate in the first half of the year 2013 the ECB again reduced the rate in November 2013. As of 13 November
2013, the interest rate on the main refinancing operations is set at 0.25 %. Parallel to this, the interest rate on
the marginal lending facility is reduced to 0.75 %, while the interest rate on the deposit facility remains stable
at 0.00 %.
The nominal exchange rate of the Euro versus the USD increased on average p.a. in 2013 compared to 2012
and is listed at USD 1.33 (previous year: USD 1.28) at year end.
Page 9
III.
DEVELOPMENT OF THE BUSINESS SEGMENTS
The figures following indicate the gross revenue and results attributable to the segments. Adjustments relate to
transactions or amounts which do not usually occur in the ordinary course of business. To the extent that
changes in the group of consolidated companies took place within a segment during the financial year, the
normalised adjustment is corrected to account for changes resulting from the additions and disposals.
1.
AT Tech
Approximately 98% of this segment's gross revenue is attributable to the EDAG, Rücker, BFFT and the FFT
Group, whose customers primarily stem from the automotive sector. Insofar, the development of the automotive
industry has an influence on this segment, while the volatility of the automotive industry only transfers partly
and delayed on the segment. Manufacturers need to work on long term development projects for new vehicles
and the subsequent capital expenditures on new assembly lines for new vehicle models require a longer period
in advance.
The positive economic circumstances of the automotive industry are directly reflected in the business results
and activities of this segment. The global automotive markets have developed positively in the reporting year.
Overall, the global market for new cars grew by approximately 3,0 % to 83.5 million units. Sales in the US rose
by 7.9 % to 15.6 million units. Also in China, there was a strong increase by 11.0 % to 21.0 million units.
Europe was confronted by a decrease of sales by -2.4 %, as well as Brazil (-1.1 %), Japan
(-0.9 %) and India (-11,1 %). The German automotive manufacturers were able to benefit from the global
growth as they are particularly well positioned in the US and China. Therefore, the decreasing demand in some
Euro countries was compensated by sales in countries outside the euro zone.
The strategy pursued by leading OEMs of offering end consumers a high variety of models and variants
promotes not only the trend towards shorter development times for vehicles but also for production facilities up
to extensive production and factory equipment. The German OEMs, in particular, continue to pursue the
strategy of offering a high variety of models and variants. This implicates an increase in complexity of individual
development solutions.
The gross revenue in this segment grew by a total of EUR 191.2 million (previous year: EUR 87.4 million) to
EUR 1,089.6 million, while in the current year the Rücker and BFFT Group have contributed to consolidated
gross revenue the entire year. In the previous year, the Rücker Group was only included in the ATON Group
from the fourth quarter on.
Page 10
Gross
revenue
in EUR '000
2013
1,089,623
(normalised)
898,429
2012
(normalised)
191,194
Change
(normalised)
EBITDA
%
EBIT
%
97,239
8.9%
67,269
6.2%
93,728
8.6%
63,957
5.9%
74,316
8.3%
56,113
6.2%
60,160
6.7%
42,571
4.7%
22,923
11,156
33,568
21,386
The following comments on single companies of the segment are based on numbers unconsolidated.
Gross revenue of the EDAG Group has decreased compared to the previous year by EUR 21.1 million to
EUR 383.1 million, whereas the in the previous year sold companies ED Work and WMU were included until
midyear in the previous year’s figure. The EBIT decreased on absolute basis by EUR 3.8 million to EUR 32.2
million and the EBIT margin has decreased from 8.9 % to 8.4 %. As at 31 December 2013 EDAG discloses
order backlog of EUR 166.8 million (previous year EUR 163.3 million).
The FFT was able to increase gross revenue by EUR 23.4 million to EUR 465.5 million. At the same time, EBIT
in the year under report increased by EUR 11.4 million to EUR 29.4 million (previous year EUR 18.0 million).
The EBIT margin improved respectively from 4.1 % to 6.3 %. As at 31 December 2013, order backlog of the
FFT amounts to EUR 514.7 million (previous year EUR 394.8 million).
The Rücker has merely contributed in 2012 starting from the fourth quarter on to the consolidated result. In
2013 Rücker generated gross revenue of EUR 199.3 million and achieved an EBIT of EUR 7.2 million (3.6 %)
before consolidation effects. The order backlog of Rücker as at 31 December 2013 amounts to EUR 82.3
million.
The BFFT was acquired in January 2013 and firstly contributes to the result of the segment AT Tech in 2013.
The company generated gross revenue of EUR 50.3 million and an EBIT of EUR 5.5 million (10.9 %) before
consolidation effects.
Reform was able to increase its gross revenue from EUR 12.4 million to EUR 23.0 million. After losses in the
previous years, Reform was able to generate an balanced EBIT auf EUR 0.1 million.
TSO generated gross revenue of EUR 5.2 million (previous year EUR 4.8 million) and an EBIT of
EUR 1.9 million and improved its EBIT compared to the previous year by EUR 0.5 million.
2.
AT Mining Tech
Since 2003, commodity prices increased from a long-term perspective. The price increase is primarily
attributable to an increase in demand for commodities by emerging economies, particularly from China. The
financial crises in 2009 caused a slump of commodity prices. Nevertheless, in 2011 the prices have reached a
maximum level. Since the beginning of 2012, prices have decreased constantly. Only since the end of 2013 a
slight rebound is recognisable. The indices show that commodity prices were highly volatile in 2013, as in the
previous years.
Page 11
Translation:
MPI Subindex Eisen und Stahl (MPI subindex iron and steel);Gesamtindex US$-Basis (Overall index USD Basis); Gesamtindex €-Basis
(Overall index EUR Basis); Eisen, Stahl US$-Basis (Iron, steel USD Basis); Eisen, Stahl €-Basis (Iron, steel EUR Basis); Indexwert
(Index value)
Source: Federal Institute for Geosciences and Natural Resources (Bundesanstalt für Geowissenschaften und Rohstoffe)
The decrease in commodity prices, particularly for gold, as well as the resulting decrease in demand for mining
contracting services and the reduced spending by the mining companies around the world have had a negative
impact.
The Redpath Group was able to maintain or rather slightly increase the gross revenue in Canadian currency.
Despite the negative development of commodity prices, the order backlog from previous years was on a high
level, which caused the gross revenue to be stable. The order backlog as at 31 December 2013 amounts to
EUR 1,045.7 million (previous year EUR 1,220.3 million). As a result of the negative development of the
Canadian Dollar CAD in 2013, gross revenue however decreased by 4.0 % to EUR 778.8 million (previous year
EUR 808.4 million).
Redpath was able to achieve absolute and percental increase of the EBIT. With an EBIT of EUR 75.6 million
(previous year EUR 74.4 million) the company generated an EBIT margin of 9.7 % (previous year 9.2 %).
Page 12
Gross
revenue
in EUR '000
2013
EBIT
%
108,207
13.3%
75,794
9.3%
99,651
12.2%
67,238
8.3%
872,250
112,702
12.9%
83,033
9.5%
114,903
13.2%
85,335
9.8%
(normalised)
- 58,553
Change
%
813,697
(normalised)
2012
EBITDA
(normalised)
- 4,495
- 7,239
- 15,252
- 18,097
The business development of the Deilmann-Haniel Mining Systems was influenced negatively by hesitant
willingness to invest. Gross revenue decreased from EUR 64.0 million to EUR 35.2 million. The company’s
EBIT reduced by EUR 6.9 million to EUR 0.6 million. In total, the adjusted EBIT of the segment decreased by
EUR 18.1 million to EUR 67.2 million.
3.
AT Med Tech
Medical technology represents a high-growth sector on a medium- and long-term perspective, due to the
continuously growing global population and the increasing share of the elderly within the overall population.
In the financial year 2013, demand for medical technology varied across regions. In many European countries,
including Germany, and in the US the environment was occasionally unfavourable. In Russia, China and other
emerging markets, the developments were positive instead.
In the financial year 2013, despite difficult market conditions, gross revenue and the result remained on prior
year’s level.
in EUR '000
2013
Gross
revenue
EBITDA
260,982
(normalised)
2012
260,011
(normalised)
Change
(normalised)
971
%
EBIT
%
30,956
11.9%
21,211
8.1%
31,421
12.0%
21,781
8.3%
30,814
11.9%
21,770
8.4%
31,574
12.1%
22,533
10.9%
142
- 559
- 153
- 752
Ziehm generated gross revenue of EUR 83.0 million in the financial year 2013, which corresponds to a
decrease of approximately 3.0 % compared to the previous year of EUR 85.8 million. The main reasons were
reduced sales in the core markets of Germany and the US, which are characterised by reluctance to invest. In
contrast to the decrease in gross revenue, the operating result improved. In the financial year, an improvement
of the EBIT by EUR 1.5 million to EUR 9.5 million respectively 19.0 % was attained. Reasons for this were the
realisation of savings potential, extraordinary depreciation of the previous year and first time capitalisation of
development costs.
In 2013, W.O.M. recorded an increase of 2.0 % in gross revenue compared to the previous year, which
amounts to EUR 57.0 million. The operating profit increased by EUR 1.4 million to EUR 7.9 million, by
approximately 22.0 %. While revenue in the business of Cameras & Photonics remained at EUR 10.0 million at
the previous year’s level, the business Insufflators & Pumps attained an increase in revenue by 4.0 % to
EUR 47.0 million. The regional breakdown of sales shows that revenue in the core markets, the US and
Page 13
Europe, stagnates or rather decreases while significant growth in the rest of the world more than offsets this
decrease.
In the financial year 2013, the new company headquarter of HAEMA was inaugurated and new production
technologies were implemented in the context of the new construction. The operating result of EUR 5.8 million
is below the operating result of the previous year which amounted to EUR 9.7 million. The flood disaster in
Germany in the summer of 2013 and its impact on the number of donors had a negative impact on Haema’s
financial performance. In addition, due to the new construction of the headquarter, depreciation increased by
EUR 0.8 million (+ 25.5%) compared to the previous year.
In the financial year 2013, OrthoScan generated gross revenue of EUR 21.8 million, which corresponds to an
increase of 8 % compared to the previous year. In the same period, the operating result improved from a
negative result of EUR -1.1 million to positive result of EUR 0.2 million. It can be expected that the predicted
future growth will lead to a further improvement of the company’s financial performance. The new product
Mobile DI is expected to be a main driver for the growth, whose market is still in the development phase.
4.
AT Aviation
The overall European market for business jets showed a reduction of 2 % measured in volume of flights in
2013. Compared to the booming years of the business aviation before the emerge of the financial crisis in the
year 2008, the number of private persons and enterprises that decide for the acquisition of an aircraft for the
first time, reduced significantly.
However it can still be observed that existing owners of aircrafts, private persons as well as enterprises, invest
in replacement every 5 years, i.e. acquire new aircrafts and possibly perform an upgrade on the aircraft type.
Regionally, Eastern European countries such as Russia, Ukraine and Kazakhstan show the largest demand
concerning the acquisition of new aircrafts as well as aircraft management, followed by countries of the Middle
East, such as Turkey, Saudi Arabia and the United Arab Emirates. The leaders of the development in Central
Europe are Switzerland, Germany and Austria, whereas a strong competition is observed among operators.
AT Aviation's revenue notably decreased compared to the previous year by EUR 35.9 million to EUR 164.2
million. This was not least because of the suspension of the flight operation of the Augsburg Airways as at
31 October 2013. The revenue of DC Aviation declined from the previous year by 6 % to EUR 87.4 million
(previous year EUR 93.3 million). The reduction of revenue was mainly driven by declining third party charter
volume as well as revenue and cost reducing effects from the restructuring of the aircraft fleet. The number of
flight hours increased compared to the previous year by 2 %, as the aircrafts were more intensively used by
their respective owners.
Page 14
in EUR '000
2013
Gross
revenue
164,218
(normalised)
2012
200,168
(normalised)
Change
(normalised)
- 35,950
EBITDA
%
EBIT
%
26,168
15.9%
15,887
9.7%
20,074
12.2%
15,216
9.3%
38,908
19.4%
17,774
8.9%
28,786
0.0%
20,722
10.4%
- 12,740
- 1,887
- 8,712
- 5,506
The normalised EBIT of the segment AT Aviation reduced by EUR 1.8 million to EUR 15.2 million. In the prior
year, the financial performance was affected by impairments recognised in relation to customer relationships
and goodwill as well as property, plant and equipment. The financial performance of the current financial year is
influenced by the suspension of operations of Augsburg Airways as at 31 October 2013.
The overall business development of the ATON Group, which unfolds as the sum of the presented segments as
well as the ATON GmbH and the ATON Group Finance GmbH, will be explained in the following. Subsequent
to the financial performance, cash flows and the financial position will be presented.
Page 15
IV.
RESULTS OF OPERATIONS, FINANCIAL AND NET ASSETS
POSITION
1.
Results of operations
The following overview presents the Group's results of operations, where the items of income and expense are
grouped from an economic perspective. Individual items are normalised for transactions or amounts which do
not usually occur in the ordinary course of business and are recognised as non-operative expenses and
income. The normalised Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) and
normalised Earnings Before Interest and Taxes (EBIT) present figures normalised for non-operative expenses
and income and extraordinary depreciation and impairments, and therefore only include the operating result.
in EUR '000
2013
2012 restated
Change
Revenue
2,303,941
99.0%
2,227,446
99.9%
Gross revenue
2,327,802
100.0%
2,230,080
100.0%
97,722
808,133
34.7%
825,073
37.0%
- 16,940
Gross performance
1,519,669
65.3%
1,405,007
63.0%
114,662
Personnel expenses
1,039,499
44.7%
922,139
41.4%
117,360
Cost of materials
76,495
Other operating expenses / income
244,088
10.5%
254,985
11.4%
- 10,897
Non-operating expenses / income
- 23,540
- 1.0%
- 26,446
- 1.2%
2,906
EBITDA
259,622
11.2%
254,329
11.4%
5,293
Normalised EBITDA
236,082
10.1%
227,883
10.2%
8,199
76,955
3.3%
64,469
2.9%
12,486
5,730
0.2%
20,102
0.9%
- 14,372
176,937
7.6%
169,758
7.6%
7,179
Depreciation and amortisation
Impairment losses
EBIT
Normalised EBIT
159,127
6.8%
163,414
7.3%
- 4,287
Net interest expense
- 13,532
- 0.6%
- 17,026
- 0.8%
3,494
- 1,328
Other financial result
Financial result
Income taxes
EAT
Normalised EAT
EAT attributable to non-controlling interests
EAT attributable to owners of the parent
Normalised EAT attributable to owners of
the parent
- 2,193
- 0.1%
- 865
- 0.0%
- 15,725
- 0.7%
- 17,891
- 0.8%
2,166
49,392
2.1%
45,668
2.0%
3,724
111,820
4.8%
106,199
4.8%
5,621
94,010
4.0%
99,856
4.5%
- 5,846
1,385
0.1%
- 1,701
- 0.1%
3,086
110,435
4.7%
107,900
4.8%
2,535
92,625
4.0%
101,557
4.6%
- 8,932
4.4%
3.6%
- 2.6%
- 5.9%
- 8.8%
Gross revenue grew by EUR 97.7 million compared to the previous year and corresponded to our expectation.
The segment AT Tech increased gross revenue by EUR 191.2 million to EUR 1,089.6 million in 2013, whereas
Rücker and BFFT Group firstly strengthened the segment AT Tech during the whole financial year. The
segment AT Mining Tech experienced a decrease of EUR 58.6 million. The gross revenue of the segment
AT Med Tech remains on prior year’s level. The gross revenue of AT Aviation reduced by EUR 36.0 million
because of the suspension of the operating business of the Augsburg Airways. ATON GmbH and ATON Group
Finance GmbH as well as effects from consolidation are summarised as Holding/Consolidation.
Page 16
Gross profit increased by 2.3 percentage points as a result of a lower cost of materials ratio. The cost of
materials ratio for the segment AT Tech improved by approximately 7.4 % as compared to the previous year, in
the segment AT Med Tech there was also a small reduction. In the segments AT Mining and AT Aviation the
cost of materials ratio increased slightly. Personnel expenses increased to a personnel expenses ratio of
44.7 % by 3.3 percentage points compared to the previous year.
Current EBITDA increased by EUR 5.3 million to EUR 259.6 million. The previous year figure included income
from deconsolidation amounting to EUR 18.3 million. In the current year, the EBITDA was not impacted by
effects from deconsolidation.
Depreciation and amortisation increased by 19.4 % to EUR 77.0 million, impairment losses decreased by
EUR 14.4 million to EUR 5.7 million in the current year.
As a result of changed prospects in the segment AT Aviation, technical equipment and machinery were
impaired by EUR 5.2 million. In the previous year, the segment AT Aviation recognised impairment losses of
EUR 12.1 million for customer relationships and goodwill, as well as EUR 8.0 million for property, plant and
equipment, which reduced the EBIT accordingly.
The normalised EBIT decreased by EUR 4.3 million to EUR 159.1 million (previous year: EUR 163.4 million)
and the margin of 6,8 % was slightly lower than in the previous year. This mainly results from the impairment
losses of the previous year amounting to EUR 20.1 million, as well as higher non-operating expenses in 2012.
The non-operating expenses amounted to EUR 17.3 million in the previous year whereas the non-operating
expenses in the financial year 2013 amount to EUR 12.5 million.
The EBIT increased accordingly from EUR 169.8 million to EUR 176.9 million. In the segment AT Tech the
normalised EBIT margin increased from 4.7 % in the previous year to 5.9 % in the current financial year 2013.
In the other segments the normalised EBIT margin reduced slightly and amounted to 8.3 % in both segments
AT Mining and AT Med Tech. In the segment AT Aviation the normalised EBIT margin reduced from 10.4 % to
9.3 % in the financial year 2013. The EBIT of the Holding/Consolidation increased by EUR 5.7 million, which
was mainly caused by consolidation effects.
The net interest expense improved by EUR 3.5 million compared to the previous year. The negative other
financial result declined from EUR 0.9 million in 2012 to EUR 2.2 million in 2013. This was mainly caused by
ineffective cash flow hedges.
Page 17
2.
Financial position
The statement of cash flows presents the Group's cash flows from operating, investing and financing activities,
and the resulting change in cash and cash equivalents. The following overview provides a condensed cash flow
statement.
2012
restated
in EUR '000
2013
Cash and cash equivalents at the beginning of the period
164,067
251,314
- 87,247
Income before interest, dividends and income taxes
174,595
168,742
5,853
Depreciation and amortisation/write-ups of assets
82,052
84,050
- 1,998
Result from the disposal of property, plant and equipment and securities
- 3,107
661
- 3,768
Result from the disposal of consolidated subsidiaries
Change in provisions
Non-cash transactions
Change
-
18,319
- 18,319
- 12,848
23,917
- 36,765
927
5,848
- 4,921
Gross cash flow
241,619
301,537
- 59,918
Interest, dividends and income taxes paid/received
- 51,345
- 54,396
3,051
Changes in trade working capital
- 38,018
- 63,615
25,597
Changes in other working capital
60,110
- 43,869
103,979
Cash flow from operating activities
212,366
139,657
72,709
Purchases of/proceeds from disposal of intangible assets and property,
plant and equipment
- 63,127
- 98,592
35,465
Purchases of/proceeds from disposal of financial assets
- 3,730
799
- 4,529
- 62,774
- 80,493
17,719
Cash flow from investing activities
- 129,631
- 178,286
48,655
Proceeds/payments related to equity
- 14,543
- 11,325
- 3,218
Proceeds from/repayments of loans and leasing
101,253
- 38,182
139,435
Cash flow from financing activities
86,710
- 49,507
136,217
Effects from currency exchange rate on cash and cash equivalents
- 8,494
889
- 9,383
325,018
164,067
160,951
Acquisition of/proceeds from the disposal of consolidated subsidiaries
Cash and cash equivalents at end of the period
- 34.7%
- 19.9%
52.1%
- 27.3%
> 100%
98.1%
Gross cash flows decreased year on year by EUR 59.9 million to EUR 241.6 million. Income before interest,
dividends and income taxes increased by EUR 5.9 million. The change in provision however led to a decrease
in cash and cash equivalents. In addition, the previous year included a positive result from the sale of shares in
consolidated entities in the amount of EUR 18.3 million.
The negative cash balance from interest, dividends and income taxes paid/received decreased in the financial
year. Working capital employed reduced by EUR 14.5 million in 2013. In the previous year, the trade working
capital had increased by EUR 107.5 million due to acquisitions.
Funds invested in trade receivables and inventories amounted EUR 20.3 million (previous year: EUR 112.1
million). Having an opposite effect, trade payables increased by EUR 58.4 (previous year: EUR 43.7 million).
Cash flow from operating activities increased by EUR 72.7 million to EUR 212.4 million.
Net investments in property, plant and equipment and intangible assets decreased by EUR 35.5 million to
EUR 63.1 million, of which EUR 48.6 million are attributable to property, plant and equipment (previous year:
EUR 90.6 million).
Page 18
Payments for acquisitions of consolidated companies amount to EUR 62.8 million in the current financial year
(previous year: EUR 140.8 million) and relate to the investments in the BFFT Fahrzeugtechnik GmbH and the
Rücker AG. In the previous year, payments for acquisitions of consolidated companies of EUR 140.8 million
were offset by proceeds amounting to EUR 60.3 million. In 2012, the investments contained the Rücker AG and
the W.O.M. AG. The sales were related to Lumera Laser GmbH as well as subsidiaries of the EDAG Group.
Cash flow from financing activities results in a cash inflow of EUR 86.7 million (previous year: cash outflow of
EUR 49.5 million). The proceeds from bank loans include the bond issued in the Prime Standard at the German
Stock Exchange (Deutsche Börse) with a volume of EUR 200.0 million.
After effects from currency exchange rate on cash and cash equivalents, the total cash inflow in 2013 amounts
to EUR 160.9 million (previous year: cash outflow EUR 87.2 million). Respectively, cash and cash equivalents
increased at the end of fiscal year to EUR 325.0 million (previous year: EUR 164.1 million).
3.
Net assets position
in EUR '000
2013
2012
restated
%
%
Change
Assets
Intangible assets
274,536
16%
250,754
17%
23,782
9%
Property, plant and equipment
324,823
19%
351,744
24%
- 26,921
- 8%
Financial assets
24,073
1%
21,424
1%
2,649
12%
Inventories
137,138
8%
125,534
8%
11,604
9%
Trade and other receivables
533,018
31%
518,910
35%
14,108
3%
Deferred taxes
Cash and cash equivalents
Other assets
Total assets
13,916
1%
17,377
1%
- 3,461
- 20%
325,018
19%
164,067
11%
160,951
98%
69,943
4%
44,338
3%
25,605
58%
1,702,465
100%
1,494,148
100%
208,317
14%
748,809
44%
694,773
46%
54,036
8%
Equity and liabilities
Equity
Provisions
97,892
6%
94,205
6%
3,687
4%
Financial liabilities
346,188
20%
252,798
17%
93,390
37%
Trade and other payables
13%
455,130
27%
403,671
27%
51,459
Deferred taxes
44,761
3%
42,589
3%
2,172
5%
Other liabilities
9,685
1%
6,112
0%
3,573
58%
1,702,465
100%
1,494,148
100%
208,317
14%
Total equity and liabilities
After adjusting for additions from changes in the scope of consolidation, total assets decreased by EUR 44.6
million to EUR 163.7 million.
Intangible assets increased as a result of additions from acquisitions of consolidated subsidiaries by
EUR 30.3 million, of which EUR 20.1 million is attributable to the increase in goodwill. Investments were made
in other intangible assets EUR 13.0 million (previous year: EUR 7.5 million); amortisation in the financial year
amounted to EUR 18.6 million (previous year: EUR 17.4 million).
Page 19
Investments in property, plant and equipment in the financial year amounted to EUR 94.9 million (previous
year: EUR 120.7 million), depreciation to EUR 64.0 million (previous year: EUR 60.7 million), property, plant,
and equipment increased by EUR 4.1 million (previous year: EUR 18.7 million) because of changes in the
scope of consolidation. Due to reclassifications of fixed assets of EUR 56.4 million (previous year: EUR 14.7) in
accordance with IFRS 5 there was a shift from non-current assets to current assets.
Trade working capital decreased by EUR 25.8 million despite an increase of EUR 97.7 million in gross revenue.
An amount of EUR 25.7 million is attributable to the increase in trade and other receivables and inventories and
EUR 51.5 million to the increase in liabilities. The balance of receivables and liabilities from construction
contracts has reduced by EUR 41.1 million compared to the previous year. Received payments on projects
increased slightly by EUR 3.4 million.
The changes in other assets/liabilities include the changes in assets and liabilities classified as held for sale
arising from planned sales of consolidated companies of EUR 38.2 million as well as related provisions and
liabilities of EUR 4.6 million.
Concerning information on changes in cash and cash equivalents please refer to section financial position.
The equity ratio decreased from 46 % in the previous year to 44 % as at the end of the financial year and
corresponds to the economic equity ratio in the financial year. As at end of the financial year, the financial
liabilities due to Horus Vermögensverwaltungs GmbH & Co. KG (hereinafter "shareholder financing") have
decreased from EUR 5.5 million to EUR 1.3 million.
The change in equity of EUR 54.0 million is primarily attributable to the profit for the financial year 2013
EUR 110.4 million, exchange rates differences EUR 27.6 million, the acquisition achieved in stages of the
Rücker shares recognised directly in equity EUR 8.4 million, dividends to shareholders (EUR 13.6 million); and
a change in the value of a cash flow hedge EUR 2.2 million.
Provisions increased by EUR 3.7 million, whereas the increase after adjustment for changes in the scope of
consolidation is EUR 2.1 million. While provisions for pension, personnel provisions and income tax provisions
increased, provisions for subsequent performance obligations and provisions for onerous contracts decreased
through consumption of EUR 3.1 million.
Financial liabilities increased due to changes in the scope of consolidation by EUR 1.9 million. The reduction of
liabilities to banks amounting to EUR 75.5 million, loan liabilities to related and third parties by EUR 11.1 million
and finance lease liabilities by EUR 18.8 million is offset by the increase of EUR 198.9 million from the issuance
of the bond.
Page 20
The following overview presents assets and capital according to maturity.
in EUR '000
2013
2012
restated
%
%
Non-current assets
Intangible assets and property, plant and equipment
Financial assets
Other assets
599,359
35.2%
602,498
40.3%
16,456
1.0%
13,077
0.9%
16,614
1.0%
22,718
1.5%
632,429
37.1%
638,293
42.7%
Current assets
Inventories
137,138
8.1%
125,534
8.4%
Receivables
532,012
31.2%
517,563
34.6%
Financial assets
7,617
0.4%
8,347
0.6%
325,018
19.1%
164,067
11.0%
68,251
4.0%
40,344
2.7%
1,070,036
62.9%
855,855
57.3%
Equity
748,809
44.0%
694,773
46.5%
290,399
17.1%
106,889
7.2%
Provisions and liabilities
30,347
1.8%
40,468
2.7%
Other liabilities
49,474
2.9%
42,589
2.9%
1,119,029
65.7%
884,719
59.2%
55,789
3.3%
145,909
9.8%
517,962
30.4%
457,408
30.6%
9,685
0.6%
6,112
0.4%
583,436
34.3%
609,429
40.8%
Other assets
Long-term capital
Short-term capital
Provisions and liabilities
Other liabilities
Non-current assets of EUR 632.4 million are financed by long-term capital by 177 % (previous year: 139 %). By
including the short-term financial liabilities of loans from related parties and shareholder financing of
EUR 24.8 million (previous year: EUR 35.2 million), which are available to the Group as core funding, this ratio
increases to 181 % (previous year: 144 %).
Current assets are financed with short-term capital at a ratio of 55 % (previous year: 71 %).
Page 21
The following overview presents the coverage ratios of current assets and capital.
Percent of total
assets
2013
Current assets
1,070,036
63%
855,855
57%
Short-term capital
583,436
34%
609,429
41%
Coverage ratio I
486,600
29%
246,426
16%
Loans related parties and shareholder financing
Coverage ratio II
Non-current securities that can be liquidated
Coverage ratio III
2012
Percent of total
assets
in EUR '000
24,796
1%
35,226
2%
511,396
30%
281,652
19%
10,895
1%
8,019
1%
522,291
31%
289,671
19%
The coverage ratio I shows that the Group is based upon a very sound financing in the financial year. The
coverage ratio II indicates that, including the shareholder loan, short-term liabilities are over-funded by
EUR 511.4 million (previous year: EUR 281.7 million).
Net cash/debt is as followed at the end of the financial year.
in EUR '000
Cash
Short-term securities
Short-term loans
Net cash/debt
Page 22
2013
2012
Change
325,018
164,067
160,951
651
214
437
6,040
5,457
583
- 346,188
- 252,798
- 93,390
- 14,479
- 83,060
68,581
V.
EMPLOYEES
The expertise of qualified employees is our main asset. Qualified and highly-motivated employees are essential
to the success and future competitive advantage of our company. In selective training programmes our
employees are developed in professional, methodological and social skills. Furthermore, the company
promotes a systematic professional development training programme and prepares young employees to take
on managerial responsibilities.
With initial vocational training and integrated study degree opportunities in business and technical professions,
the company offers a broad selection of possibilities for the professional entry. The promotion of training
programms is supplemented with the cooperation with public educational providers and university-level
institutes.
In 2013, EUR 7.4 million (previous year: EUR 7.5 million) was invested in advanced training and development
programmes for our employees.
The ATON Group employed on average 17,344 employees during the financial year (previous year: 15,356
epmployees). In the financial year, the breakdown of employees across groups was as follows.
2013
Salaried staff
Industrial workers
Trainees and interns
Total employees
General administration
Sales and marketing
Production and service
Research and development
%
2012
%
12,398
71%
10,273
67%
4,224
24%
4,524
29%
722
4%
559
4%
17,344
100%
15,356
100%
1,882
11%
2,169
14%
379
2%
322
2%
14,899
86%
12,683
83%
185
1%
182
1%
17,344
100%
15,356
100%
Germany
9,725
56%
8,186
53%
Europe (excluding Germany)
1,054
6%
457
3%
North America
1,945
11%
2,080
14%
South Amerika
998
6%
948
6%
Total employees
Australia
Asia
Africa
Total employees
649
4%
638
4%
2,301
13%
2,240
15%
673
4%
807
5%
17,344
100%
15,356
100%
Page 23
VI.
SUBSEQUENT EVENTS
In order to focus the business model on integrated engineering services for the automotive business, the
Rücker Group withdrew from activities in the aviation industry in the first quarter 2014 and sold its subsidiaries
Rücker Aerospace GmbH (Germany), Rücker France S.A.R.L. (France) and Silver Aerospace B.V. (The
Netherlands) as of 1 April 2014. The sale of the aviation activities of the Rücker Group will have a small positive
impact on the profit for the period 2014.
In addition, the operative merger of EDAG and Rücker Group, which was started at the end of 2013, is further
promoted in 2014. In the context of the merger, the EDAG GmbH & Co. KGaA will be contributed to EDAG
Engineering AG (formerly ATON Engineering AG). In return EDAG Engineering AG issued 19,950,000 new
shares and a loan receivable amounting to EUR 40.0 million.
Page 24
VII. EXPECTED DEVELOPMENTS, OPPORTUNITIES AND RISKS
The global economy is pointing upward since the middle of the year 2013. Overall, the global economy is
expected to experience a growth of 3.3 % in 2014, which shall further increase in subsequent years. The
economic recovery remains however susceptible to setbacks and the political risks have further intensified
through the intervention of Russia in the Ukraine.
The following overview presents the development of gross domestic product (GDP) in individual economic
regions as forecast 2013 to 2017 compared to the previous year.
in %
2013 *
2014*
2015*
2016*
2017*
Rest of world
2.5
3.3
3.8
3.9
3.9
Europe
0.3
1.5
1.9
2.0
2.1
Germany
0.6
2.1
2.0
1.6
1.7
North America
1.9
2.7
3.2
3.3
3.1
South America
2.6
3.3
3.9
4.0
4.0
Asia/Pacific
4.8
5.3
5.7
5.5
5.5
China
7.7
8.0
8.3
7.6
7.1
Middle East
2.7
3.4
4.4
4.6
4.6
Africa
3.5
5.2
5.5
5.5
5.6
Source: Global Insight World Overview, 15 January 2014.
* Forecast.
The Institute for the World Economy (IfW) in Kiel assumes that in advanced economies recovery will remain in
the years 2014 and 2015. Main drivers for the anticipated acceleration in industrialised countries are the
stabilization of European countries, which are strongly affected by the sovereign debt crisis, the strengthening
of the U.S. economy, less drag from fiscal consolidation policies and the continuation of a supportive monetary
policy. Even though structural reforms, aimed at regaining lost competitiveness show positive development, the
most severe problem within Europe is the unsustainable high unemployment, which considerably affects private
consumption and investment activity.
In the year 2014, the European economy is expected to grow by 1.5 %. An exception for this is Germany. The
country’s unemployment rate is historically on a very low level, incomes are rising and the monetary policy is
expansive because of the favourable situation of the German economy. With a growth of 2,1 % in 2014, the
German economy is expected to be one of the engines of growth in the region. In the US, growth of 2.7% is
expected for 2014. The US Congress adopted a two-year budget supporting growth through a resurgent real
estate sector, growing independence from oil imports and rising consumer spending.
In Japan and China growth is projected to flatten within the next years. For the Asia-Aacific region as a whole,
economic growth of 5.3 % is expected for the year 2014. Structural deficiencies and strong headwinds from the
financial markets will prevent a rapid increase of economic dynamics in emerging countries according to the
Kiel Institute for the World Economy (IfW). Risks include a resurgence of the euro crisis respectively an
intensification of balance-of-payments problems, the exchange rate devaluations as well as the capital flight
from emerging markets.
Page 25
Wide fluctuations in interest and currency rates must be expected again in 2014 as a result of the differences in
monetary policy applied by central banks around the world in response to the financial and economic crisis.
Given the results from the first quarter of 2014, the expected development of the business environment and the
existing political uncertainty, we expect a moderate decrease in gross revenue, EBIT and EAT for the year
2014.
1.
Risks
a) Macroeconomic risks
Regarding the macroeconomic risks, please refer to the forecast as well as to the explanations of the
macroeconomic development.
b) Financial risks
Liquidity risks
The provision of liquid funds to implement corporate objectives continues to remain of central importance. The
liquidity of the group is currently secured by the available cash and bank balances, the issued bond as well as
sufficient lines of credit. Cash, including short-term investments in bonds, amounted to EUR 325.7 million as at
the end of the financial year; including short-term loans, the net debt amounted to EUR 14.5 million per ultimo.
Financial liabilities of EUR 346.2 million include EUR 24.8 million of loans from related parties and shareholder
loads that are available on a long-term basis. In addition, the Group and the individual companies have access
to sufficient lines of credit and guarantee facilities from banks and credit insurers. As at the end of December
2013, the Group was able to dispose of EUR 397.3 million unutilised lines of credit at banks and credit insurers.
The development of liquidity and available liquid funds is monitored and managed via weekly cash reports.
Thus, liquidity risks are addressed by appropriate measures at an early stage. In 2011, ATON GmbH began to
implement a Group-wide cash pooling process. The cash pooling process is intended to serve the short-term,
revolving financing and cash investments of the subsidiaries within the framework of predefined cash pool limits
and to ensure that the Group's liquidity is distributed and managed in the most cost-effective manner.
Additional profit contributions are generated by transforming the maturities of financial assets. Furthermore, the
necessary liquidity reserves at the overall Group level were reduced, the payment and cash management
conditions with banks were improved by leveraging greater transaction volumes and the transparency and
ability to plan total liquidity were improved.
Interest rate risks
Interest rate risks due to changes in the market interest rates primarily result from variable-rate loan liabilities.
The Group addresses the risk through a mixture of fixed- and variable-rate financial liabilities. Liabilities from
the bond issued are fixed-rate liabilities. As at the end of the year, EUR 17.5 million of financial liabilities from
banks were fixed-rate liabilities and EUR 66.0 million were variable-rate liabilities. In addition, EUR 24.8 million
of fixed-rate financial liabilities from related parties existed as at the end of the year. The low leverage of the
Group contributes to a further reduction of the interest rate risk.
Page 26
Foreign currency risks
To the extent possible and available, foreign currency risks are hedged via local financing of the subsidiaries in
the respective national currency. For further protection, foreign exchange futures are concluded at the level of
the subsidiaries and the parent, as well as between the parent and the subsidiaries in individual cases.
Default risks
In order to limit default risks, there are a number of protective measures at the subsidiaries. In Germany,
default risks are generally addressed by credit insurers, letters of credit and prepayments. Domestically and
abroad there are established credit check procedures at the subsidiaries.
In the overwhelming number of cases, customers are companies with high credit ratings operating in the
automotive, commodities or medical industries and public entities. Default risks are furthermore mitigated by
retentions of title and the use of letters of credit.
Covenant risks
The majority of financing contracts with banks include covenants that are based on predefined financial ratios.
The ratios mainly are equity ratios, leverage ratios and in individual cases, interest coverage ratios. If one of the
agreed threshold of the covenants is violated, the lender has the right of termination.
In the terms and conditions of the bond there are clauses included, which limit the financial leverage of the
ATON Group as well as ATON subsidiaries by using financial ratios. Moreover, the terms and conditions
include regulations regarding securing financial liabilities, transactions with owners, change of control and the
maximum amount of dividends.
In the case of change of control each bondholder has the right of termination, in breach of other obligations a
creditor quorum of 10% is required for the validity of the termination. The clauses of the bond and the
covenants of financing contracts with banks are permanently monitored concerning the companies' current
financial results, thereby facilitating the early detection of risks. In the financial year 2013 the clauses of the
issuance of the bond were complied with.
Other price risks
The price risk is a part of the market risk. This contains that price for financially assets change unfavourably.
Eligible risk variables stock exchange prices or indices in particular. At the end of financial year 2013 the Group
reports bonds held to maturity amounting to EUR 1,039k. These have a remaining maturity of maximum three
months, so that no significant risks appear.
For further explanation regarding the risk report and the risk management system, please refer to note 35 of the
notes.
Page 27
c) Risks of the segments
In addition to the aforementioned macroeconomic and financial risks, the individual segments are exposed to
specific risks from operating activities.
AT Tech
In the segment AT Tech, project risks are in the foreground. Especially, large-scale projects are complex and
executed parallel in different countries. Sometimes the scope of the services is agreed upon only after an
agreement on the total price has been reached. Occasionally, the scope of the services is formulated
ambiguously and leads to additional expenses that are not reimbursed. Unexpected project developments may
lead to delays, cost overruns and quality defects, thus straining the company's net assets and financial position
and results of operations. Companies are able to detect and address such risks at an early stage by project and
risk management, constant project assessments as well as detailed reporting within the context of project
steering committees.
Furthermore, the segment is particularly dependent on the developments of the automotive industry. The
EDAG, Rücker, BFFT and FFT Group are strongly dependent on certain automotive manufacturers in part and
hence on their long-term strategies and sales success.
During the fourth quarter of 2013, the merger of the EDAG and Rücker Group began. The autonomously
managed BFFT, headquartered in Gaimershaim, also belongs to the new Group. Extraordinary expenses, risks
from temporary productivity losses, dissynergies or fluctuation may result in the short term caused by the
integration process. We address these risks through an early involvement of key players in the change process
as well as open and honest communication with the employees. In the medium- and long-term, we expect the
opportunities to significantly prevail the risks from this merger.
AT Mining Tech
The greatest risk concerning growth, particularly within the Redpath Group, is the challenge to retain qualified
employees to the company. In addition, political risks play an important role. The activities of the Redpath
Group are partly executed in politically unstable regions. This may have an impact on the future results of
operations of the Redpath Group. Other risks, especially in the short- and medium-term, are deterioration in
commodity prices as this may cause mine operators to abandon or delay projects and to cut back on capital
investments. Furthermore, long delivery times for machinery could lead to delays of existing projects and
increasing competition could reduce profitability.
AT Med Tech
The companies Ziehm, OrthoScan and W.O.M. develop innovative products. The risk exists that the products
will not be accepted by the market as originally planned. This implies that the targeted expansion of market
share may not be achieved or that market share may get lost. The companies address this risk by continuously
monitoring the market and conducting studies on the marketability of products throughout their entire lifecycle.
A multitude of national and international standards and regulations must be complied with in the field of medical
Page 28
technology. With the increasing internationalisation and the rapid rate of innovation of companies, regulatory
requirements also increase. In case that the requirements or not complied with, this may lead up to a ban on
the marketing of products.
Haema produces pharmaceuticals and active substances for human use, respectively raw materials for further
processing into pharmaceuticals. These biological substances are associated with residual risks of transferring
hepatitis and HIV. The company has adequate insurance coverage for these risks and has minimised
manufacturing risks by implementing quality assurance standards and ongoing quality development.
A general risk for the segment is the development of healthcare policy. A weakening economy could lead to
reduced spending in healthcare, which will directly impact the sales of product. In particular, in the world's
largest market for medical products, the US, the implementation of the US healthcare reform can exert a
substantial influence on the investment cability of hospitals and on the profitability of OEM customers.
AT Aviation
Beside industry risks, such as increases in jet fuel prices, changes in the legal environment, and additional
levies such as aviation taxes, aviation companies are exposed to potential flight risks and technical operation
risks. Particularly, these include the risk that flight operations cannot be constantly performed due to technical
or external factors and the risk of aircraft accidents with the danger of property damage and personal injury. In
order to reduce the risk of aircraft accidents caused by human error, pilots regularly participate legally
mandated and supplementary safety training programmes. Internal standard operating procedures and the
continuous improvement of the internal control system ensure that risks are detected and prevented.
The core business of the Augsburg Airways was the operation of the aircraft types Dash 8-Q400 and
Embraer 195 in the welt-lease programme of the Deutsche Lufthansa. With effect from the end of October
2013, the Deutsche Lufthansa terminated this agreement. In this context, only few risks are estimated
concerning the planned sale of the remaining aircrafts in 2014. At present, the aircrafts have already been sold
or a potential prospective buyer for the aircraft exists. There is no impairment necessary to the book values as
of 31 December 2013.
DC Aviation is specialised on the management and operation of business aircrafts and in the premium charter
business. The business aviation sector usually directly responds to the economic climate. A weakening of the
economy directly impacts the occupancy rates of charter flights, in which the DC Aviation bears the cost risks,
while the cost risks for aircraft management lie with the owners.
d) Legal risks
After the squeeze-out of the external stockholders of W.O.M. World of Medicine AG - now registered as W.O.M.
WORLD OF MEDICINE GmbH – the former minority stockholders have initiated legal proceedings
(“Spruchverfahren”) to verify the adequacy of the compensation (“Barabfindung”) of 12,72 EUR in the
meantime. The legal proceedings before the Regional Court of Berlin (“Landgericht Berlin”) are still pending.
The duration and the outcome of the proceedings are not yet clear.
Page 29
e) General statement on risks
The ATON Group is exposed to a large number of different risks. From the management’s point of view the
operational risks of the business units as well as the macroeconomic risks are more important for the ATON
Group as the legal and financial risks. According to the management’s current assessment, these risks will
overall not have adverse financial effects on the Group due to the heterogeneous structure and diversified
operations in various markets of the ATON Group.
2.
Opportunities
a) Opportunities in general
The subsidiaries of the ATON Group belong to national and international market leaders in various fields and
product segments in terms of revenue or the technical level of their products and services. Based on the high
level of technological expertise associated with high product quality and long-term customer relationships, the
ATON Group sees opportunities for further expansion of this market share. The future strategic orientation of
the individual companies' services and products and prospective careful strengthening of the corporate portfolio
as well as the leveraging of synergies within segments will enable the companies to create additional
opportunities for the companies.
b) Opportunities of the segments
AT Tech
The automotive industry is positively forward looking regarding the financial year 2014. Following a growth of
around 5 % to 72.2 million vehicles the world market is expected to continue to grow in 2014, by a further 3 %
to 74.7 million units. The German automotive industry, which share of the world passenger car market is
around one fifth, is able to benefit and increase the global production according to VDA from 14.2 million
passenger cars in 2013 to 14.7 million passenger cars in 2014. The expansion of production mainly takes place
in China and Mercosur/South America, inside Germany around 5.5 million units will be produced as in the
previous year. The association therefore expects a stable employment at the home of the automotive industry
Germany. In order to maintain or expand the leading market position, the German manufacturers continue to
invest in research and development. Driven by the ambitious climate targets in some countries, a focus is
placed on further development of environmentally friendly and fuel-efficient vehicles. Also, the trend towards
more communication, networking, security and comfort in the car continues. Moreover, manufacturers have
announced to expand their product portfolio regarding country-specific customer needs.
The strategy of some manufacturers to expand global production capacity, amongst others, by expansion in
China and America leads to strong demand and order behaviour while high capacity utilization in plant
engineering already exists. Assuming a continuing recovery of the global economy and rapidly expanding
automotive markets in the US, China, India and Russia, in which German manufacturers benefit from
increasing market shares, the engineering and plant engineering market provides solid growth opportunities, in
which the companies can participate in.
Page 30
During the fourth quarter of 2013, the merger of the EDAG and Rücker Group began. The autonomously
managed BFFT, headquartered in Gaimershaim, also belongs to the new Group.
Thereby three renowned engineering service-providers will combine their know-how, expertise, experience and
technical equipment in order to offer customers a comprehensive range of services and to be successful in a
highly dynamic competition in the future. Moreover, opportunities arise from synergies in administrative
processes, in purchasing as well as IT-standards. As explained earlier, extraordinary expenses, risks from
temporary productivity losses, dissynergies or fluctuation may result in the short term caused by the integration
process. We address these risks through an early involvement of key players in the change process as well as
open and honest communication with the employees. In the medium- and long-term, we expect the
opportunities to significantly prevail the risks from this merger.
AT Mining Tech
In the medium to long-term, demand for commodities will recover. Therefore, commodity prices will increase
and will result in higher demand for mining contractor services. The services of Redpath will be increasingly in
demand because large mining operators will promote their mining operations in the long term. The at the
beginning of 2012 completed integration of DHSS into the Redpath Group provides additional opportunities for
both companies. The international presence was strengthened and synergies were exploited by exchanging
employees and knowledge. The additional range of services of the Redpath Group, moreover enables to
acquire new customers. Also, the Deilmann-Haniel Mining Systems will benefit from increasing demand for
commodities in the medium to long term as new and additional mining capacities, new investments and
replacements will be required. Demand for European mining technology is particularly high in emerging
countries such as China.
AT Med Tech
For the coming years, further growth is predicted for the medical technology markets. It is generally expected
that especially emerging and developing economies such as China and India may cause growth in the long
term. The key factor particularly is the growth of income in these regions. The share of healthcare expenditures
will strongly grow in these regions where elasticity is high, particularly in the lower income classes. Globally, the
main drivers of growth are the growing world population, an ageing society in the industrial nations, increased
health consciousness and strong purchasing power noted above.
According to information from the professional association, Medizintechnik Spectaris, German medical
technology equipment manufacturers have generated revenue growth of 3 % in 2013. Therefore, the growth is
lower than in the previous years. According to the federal association for medical technology, Bundesverband
Medizintechnik (BV Med), the medical technology companies face the year 2014 sceptically, as limiting factors
to growth are mentioned: the opposing attitude of health insurances concerning innovation, the increasing
shortage of skilled labour and the uncertainty of benefit assessment of medical products. Opportunities for
future growth for companies of the ATON Group will result from greater market penetration in the core markets,
Europe and North America, and expansion into the Asia and South America markets. In addition, the promotion
Page 31
of technological innovation and consequently the protection of technological progress by comparison with
competitors will open up new opportunities.
AT Aviation
The high quality of services offered, with safety standards above industry average particularly in business
aviation, enables the companies to secure and expand their market position. Opportunities for the DC Aviation
particularly are in the area of aircraft management, due to its exceptional market position and reputation, to
acquire additional renowned customers. This also applies to potential new customers in regions where the
advantages of high-quality services like those offered by DC Aviation are not provided to the same extent at the
local level (Africa, Eastern Europe, Middle East).
Page 32
VIII. RISKS MANAGEMENT SYSTEM AND ACCOUNTINGRELATED INTERNAL CONTROL
1.
Management of risks and opportunities
In the course of its business operations, the Group is exposed to risks, which are inextricably linked to its
entrepreneurial initiative. A complete exclusion of risks would only be possible by stopping business activities.
Insofar, the acceptance of risks is part of entrepreneurship. The primary objective of the risk management is to
ensure the success and going concern of the companies. Risks and opportunities of the individual companies
have to be identified, evaluated, and any risks that potentially endanger the success of companies, have to be
limited or eliminated.
The subsidiaries of the ATON GmbH operate in different industries, different geographical locations and in
various national and international markets. This entails individual company-specific risks, which can result in
risks different in nature and scope depending on the activities and the environment of the respective company.
Therefore, the focus of risk identification from the respective managing directors of the subsidiaries is first of all
placed on the continuous identification of financial risks in the form of risks to results of operations, financial
position and liquidity, which may jeopardise the company as a going concern. In addition, economic, legal,
technical and other risks are assessed every six months and discussed with the ATON holding company. As a
result of the high differentiation in the Group structure, the distribution of opportunities and risks also depends
on very different factors in the individual segments and/or the individual companies. For this reason, risk
management and implementation of opportunities is planned and controlled by the companies and agreed with
the holding company in short- to medium-term strategy and financial planning meetings.
Monitoring of key financial data is performed weekly and/or monthly by means of financial reporting by the
individual companies, which are analysed for deviations from the holding company. Regularly, the companies
and the holding management review agreed development of strategy and results of operations and determine
possible strategy adjustments and countermeasures.
2.
Accounting-related internal control
The internal control system of the ATON Group is designed to ensure that the (accounting-related) groupwide
reporting processes are consistent, transparent and reliable as well as in compliance with legal standards and
the company’s own guidelines. It comprises principles, procedures and methods designed to reduce risk and
ensure the effectiveness and accuracy of processes.
The management directors bear the overall responsibility for the internal control system and risk management
of the consolidated accounting process. All companies included in the consolidated financial statements are
embedded in a defined management and reporting organization. Areas of responsibility related to accounting
are clearly structured and assigned by ATON.
The ATON GmbH as well as the group companies are responsible for the adequate implementation of the accounting processes. Major processes and deadline are defined group wide from the ATON GmbH.
Page 33
Beyond that, the accounting of ATON is decentralised. For the most part, accounting duties are performed by
the consolidated companies at their own responsibility. The audited financial statements of the subsidiaries
prepared in accordance with IFRSs and the accounting policies are transmitted to the Group. The departments
involved in the accounting process are appropriately staffed and funded. The acting employees hold the necessary qualifications; case-related external experts are involved. Control activities at group level include analysing
and, if necessary, adjusting the data reported in the financial statements presented by the subsidiaries. The
group management report is centrally prepared in accordance with the applicable requirements and regulations
with in the involvement of and in consultation with the group companies. Segregation of duties and the implementation of the four-eyes principle are additional control mechanisms. The IT systems are protected from unauthorized access. Access rights are assigned according the functions.
The internal control system is regularly monitored and adjusted to current developments based upon documented processes, risks and controls and therefore creates transparency with regard to the structure, workflows and effectiveness for the internal and external reporting.
IX.
DISCLAIMER
The management report contains forward-looking statements concerning expected developments. These
statements are based on current estimates and by nature are subject to risks and uncertainties. Actual events
may deviate from the statements made in this management report.
Munich, 23 April 2014
ATON GmbH
Management board
Thomas Eichelmann
Page 34
Jörg Fahrenbach
ATON GmbH, Munich
CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2013
(Translation – the German text is authoritative)
ATON GmbH, Munich – Consolidated financial statements 2013
CONSOLIDATED INCOME STATEMENT 2013
in EUR '000
Note
2013
2012 restated
Revenue
6
2,303,941
2,227,446
Changes in inventories and own work capitalised
7
23,862
2,634
Other operating income
8
94,483
67,980
Cost of materials
9
- 808,133
- 825,073
Personnel expenses
10
- 1,039,499
- 922,139
Other operating expenses
17, 18
- 82,685
- 84,571
11
- 315,032
- 296,519
176,937
169,758
-
52
Earnings before interest and taxes (EBIT)
Result from associated companies
12
Other investment result
13
-
-1
Interest income
14
3,511
3,443
Interest expense
14
- 17,043
- 20,469
Other financial income and expenses
15
- 2,193
- 916
Net financial result
- 15,725
- 17,891
Earnings before income taxes (EBT)
161,212
151,867
- 49,392
- 45,668
111,820
106,199
111,820
106,199
1,385
- 1,701
110,435
107,900
Income taxes
16
Profit or loss for the period from continuing operations
Profit or loss for the period (EAT)
attributable to non-controlling interests
attributable to owners of the parent
28
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2013
in EUR '000
Note
Profit or loss for the period
2013
2012 restated
111,820
106,199
1,385
- 1,701
110,435
107,900
419
145
-
-
- 27,108
54
Items that may be reclassified subsequently to profit or loss
Available-for-sale financial assets
28
Amount reclassified to profit or loss
Currency translation differences
28
Cash flow hedges
28
-
-
- 2,191
2,191
- 2,191
-
- 28,880
2,390
63
- 2,863
63
- 2,863
- 28,817
- 473
503
174
- 29,320
- 647
83,003
105,726
1,888
- 1,527
81,115
107,253
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Other comprehensive income, net of income taxes
Total comprehensive income for the period
29
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31.12.2013
in EUR '000
Note
31.12.2013
31.12.2012
restated
01.01.2012
restated
Goodwill
17
202,076
188,200
160,538
Intangible assets
17
72,460
62,554
35,799
18
321,819
348,639
301,632
Investment properties
18
3,004
3,105
3,206
1,692
3,994
4,651
Other financial assets
22
16,456
13,077
8,609
Deferred tax assets
16
13,916
17,377
14,186
24
1,006
1,347
4,018
632,429
638,293
538,934
Reparable aircraft spare parts
Non-current assets
Inventories
25
137,138
125,534
82,267
24
532,012
517,563
434,572
22
7,617
8,347
38,875
Income tax receivables
16
30,070
23,865
18,882
26
Assets of disposal groups classified as held for sale
27
325,018
164,067
251,314
1,031,855
839,376
825,910
38,181
16,479
47,438
Current assets
1,070,036
855,855
873,348
Total assets
1,702,465
1,494,148
1,412,282
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31.12.2013
in EUR '000
Note
31.12.2013
31.12.2012
restated
01.01.2012
restated
Equity attributable to owners of the parent
28
747,185
687,832
630,697
Non-controlling interests
28
1,624
6,941
12,718
Equity
28
748,809
694,773
643,415
Provisions for pensions
29
19,013
17,850
6,844
Provisions for income taxes
30
1,460
1,318
-
Other provisions
30
9,874
17,755
17,871
31
290,399
106,889
80,465
32
4,713
3,545
4,146
Deferred tax liabilities
16
44,761
42,589
23,290
Non-current liabilities
370,220
189,946
132,616
30
20,379
7,965
16,771
Other provisions
30
47,166
49,317
29,700
31
55,789
145,909
195,214
32
450,417
400,126
369,433
Income tax liabilities
16
5,080
6,112
7,454
578,831
609,429
618,572
Liabilities of disposal group classified as held for sale
Current liabilities
Total equity and liabilities
27
4,605
-
17,679
583,436
609,429
636,251
1,702,465
1,494,148
1,412,282
STATEMENT OF CHANGES IN EQUITY AS AT 31.12.2013
Equity attributable to owners of the parent
Total other comprehensive income
in EUR ’000
Balance as at
31 December
2011 restated
Restatement
IAS 19R
Balance as at
1 January
2012 restated
Share
capital
Retained
earnings
incl.
profit or
loss
Capital
reserve
Currency
translation
differences
Fair value
of
availablefor-sale
financial
assets
Cash flow
hedges
Remeasurements
of defined
benefit
plans
Noncontrolling
interest
Total
Total equity
15,000
783,517
- 178,638
12,514
-
- 37
-
632,356
12,718
645,074
-
-
-
-
-
-
- 1,659
- 1,659
-
- 1,659
15,000
783,517
- 178,638
12,514
-
- 37
- 1,659
630,697
12,718
643,415
Equity transactions with
shareholders
-
Changes in the
scope of
consolidation
-
-
-
447
-
-
-
447
24,625
25,072
Acquisition of
W.O.M. GmbH
-
-
- 17,609
-
-
-
-
- 17,609
- 10,390
- 27,999
Acquisition of
Rücker AG
-
-
- 23,208
-
-
-
-
- 23,208
- 18,285
- 41,493
Dividends
-
-
- 11,325
-
-
-
-
- 11,325
-
- 11,325
Other
-
- 72,574
74,151
-
-
-
-
1,577
- 200
1,377
-
- 72,574
22,009
447
-
-
-
- 50,118
- 4,250
- 54,368
Comprehensive
income for the
year
-
Other comprehensive
income, net of
income taxes
2012 restated
Profit or loss for
the year 2012
restated
Balance as at
31 December
2012 restated
15,000
710,943
-
- 120
2,191
145
- 2,863
- 647
174
- 473
107,900
-
-
-
-
107,900
- 1,701
106,199
107,900
- 120
2,191
145
- 2,863
107,253
- 1,527
105,726
- 48,729
12,841
2,191
108
- 4,522
687,832
6,941
694,773
Equity transactions with
shareholders
-
Acquisition of
Rücker AG
-
-
- 8,391
-
-
-
-
- 8,391
- 5,853
- 14,244
Dividends
-
-
- 13,582
-
-
-
-
- 13,582
- 961
- 14,543
Other
-
- 24,866
25,077
-
-
-
-
211
- 391
- 180
-
- 24,866
3,104
-
-
-
-
- 21,762
- 7,205
- 28,967
Comprehensive
income for the
year
-
Other comprehensive
income, net of
income taxes
2013
-
Profit or loss for
the year 2013
Balance as at
31 December
2013
15,000
686,077
- 27,611
- 2,191
419
63
- 29,320
503
- 28,817
110,435
-
-
-
-
110,435
1,385
111,820
110,435
- 27,611
- 2,191
419
63
81,115
1,888
83,003
64,810
- 14,770
-
527
- 4,459
747,185
1,624
748,809
CONSOLIDATED STATEMENT OF CASH FLOWS 2013
in EUR '000
Income before interest, dividends and income taxes
Note
33
2013
2012 restated
174,595
168,742
Income taxes paid
- 43,552
- 43,051
Interest paid
- 11,255
- 12,321
3,314
3,255
148
150
Interest received
Dividends received
Depreciation and amortisation/write-ups of assets
Change in provisions
Other non-cash transactions
Result from the disposal of property, plant and equipment
Result from the disposal of securities
Result from the disposal of consolidated subsidiaries
5
Changes in other assets
Changes in other liabilities
Investments in intangible assets
17
Proceeds from the disposal of intangible assets
Investments in property, plant and equipment
18
82,052
84,050
- 12,848
23,917
927
5,848
- 3,805
- 70
698
731
-
18,319
- 20,882
- 99,353
42,974
- 10,560
212,366
139,657
- 15,231
- 8,107
664
97
- 94,301
- 120,661
Proceeds from the disposal of property, plant and equipment
45,741
30,079
Investments in financial assets
- 5,688
- 6,760
Proceeds from the disposal of financial assets
1,958
7,559
Acquisition of consolidated subsidiaries, net of cash acquired
5
- 48,530
- 96,406
Acquisition of interest in subsidiaries from non-controlling interests
5
- 14,244
- 44,420
Proceeds from the disposal of consolidated subsidiaries
5
-
60,333
- 129,631
- 178,286
Dividends paid
- 14,543
- 11,325
Repayments of finance lease liabilities
- 27,518
- 24,360
Proceeds from finance leases
12,537
17,647
Proceeds from bank loans
223,315
105,168
Repayments of bank loans
- 107,081
- 136,637
86,710
- 49,507
Change in cash and cash equivalents
169,445
- 88,136
- 8,494
889
164,067
251,314
325,018
164,067
Effect of changes in exchange rates on cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
26
Notes to the consolidated financial statements 2013
Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
General information ..........................................................................................................................................2
Basis of preparation of the consolidated financial statements .........................................................................2
Summary of significant accounting policies ................................................................................................... 11
Estimates and assumptions........................................................................................................................... 25
Changes in the consolidation group .............................................................................................................. 28
Revenue ........................................................................................................................................................ 31
Changes in inventories and own work capitalised......................................................................................... 32
Other operating income ................................................................................................................................. 33
Cost of materials ............................................................................................................................................ 34
Personnel expenses ...................................................................................................................................... 35
Other operating expenses ............................................................................................................................. 36
Result from associated companies ............................................................................................................... 37
Other investment result ................................................................................................................................. 37
Net interest expense ...................................................................................................................................... 37
Other financial result ...................................................................................................................................... 38
Income taxes ................................................................................................................................................. 38
Goodwill and other intangible assets ............................................................................................................. 43
Property, plant and equipment and investment properties ............................................................................ 46
The Group as lessee ..................................................................................................................................... 48
The Group as lessor ...................................................................................................................................... 50
Investments in joint ventures ......................................................................................................................... 50
Other financial assets .................................................................................................................................... 51
Investments in associates ............................................................................................................................. 52
Trade and other receivables .......................................................................................................................... 53
Inventories ..................................................................................................................................................... 56
Cash and cash equivalents ........................................................................................................................... 57
Assets of disposal group classified as held for sale ...................................................................................... 57
Equity ............................................................................................................................................................. 58
Provisions for pensions ................................................................................................................................. 60
Income tax provisions and other provisions .................................................................................................. 65
Financial liabilities .......................................................................................................................................... 66
Trade and other payables .............................................................................................................................. 68
Notes to the statement of cash flows ............................................................................................................ 69
Contingent liabilities and other financial obligations ...................................................................................... 70
Financial instrument disclosures ................................................................................................................... 70
Objectives and methods of financial risk management ................................................................................. 77
Segment reporting ......................................................................................................................................... 83
Auditor‘s fees ................................................................................................................................................. 86
Related party transactions ............................................................................................................................. 86
List of shareholdings ...................................................................................................................................... 87
Events after the balance sheet date .............................................................................................................. 87
Responsibility statement................................................................................................................................ 89
1.
General information
ATON GmbH (ATON GmbH or the "Company") is a limited liability company whose registered office is in
Munich, Germany (Leopoldstraße 53, 80802 Munich) and which has been registered with the Munich local
court under the registration number HRB 193331.
ATON GmbH and its subsidiaries (collectively, the "Group") have a balanced portfolio of business activities.
The Group’s operating companies are organised on a global basis and have a presence in all continents with
core activities in the AT Tech, AT Med Tech, AT Aviation and AT Mining Tech business segments.
The annual financial statements of the ATON Group as at 31 December 2013 were prepared in accordance
with Section 315a of the German Commercial Code (Handelsgesetzbuch, "HGB") in accordance with the
provisions of the International Financial Reporting Standards (IFRSs) issued by the International Accounting
Standards Board (IASB), London, applicable on the reporting date and as adopted by the European Union, and
with the interpretations of the International Financial Reporting Interpretations Committee (IFRIC).
The annual financial statements of ATON GmbH, which were certified with an unqualified audit report by
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Munich, and the consolidated
financial statements of ATON GmbH are submitted to the operator of the electronic Federal Gazette. The
consolidated financial statements of ATON GmbH for the financial year 2013 were authorised for publication by
a management resolution on 23 April 2014. Under the relevant statutory provisions, the shareholders still have
the option in theory of making changes to the financial statements. The Helmig family shareholders exercise
control over the Group.
The consolidated financial statements are prepared in Euro. Except where indicated otherwise, all amounts are
rounded up or down to the nearest k EURO in accordance with normal commercial practice. Rounding may
give rise to rounding differences of +/- EUR 1k.
Individual items in the income statement and the statement of comprehensive income, the statement of
financial position, the statement of cash flows and the statement of changes in equity of the ATON Group have
been combined in order to achieve greater clarity. Full details are given in the notes. The income statement has
been prepared in accordance with the nature of expense method. The statement of financial position is
classified in accordance with the maturity of the assets and liabilities. Assets and liabilities are treated as
current if they are due within one year or within the normal business cycle of the company or of the Group, or if
they are intended to be sold. Deferred tax assets and liabilities are presented in principle as non-current, as are
provisions for pensions.
2.
Basis of preparation of the consolidated financial statements
2.1.
General principles
The financial statements of the domestic and foreign subsidiaries included in the consolidated financial
statements are prepared in accordance with the accounting policies that are applied on a consistent basis
Page 2
throughout the ATON Group. The financial statements of the subsidiaries included in the consolidated financial
statements are prepared as at the reporting date of the consolidated financial statements.
The consolidated financial statements were prepared on the basis of the historical purchase and production
costs, with the exception of items reported at their fair values, such as derivative financial instruments,
available-for-sale financial assets and plan assets in connection with pension obligations.
2.2.
Application of new, amended and revised standards
The accounting policies adopted are consistent with those of the previous financial year except as described
below.
Accounting standards applied on a mandatory basis for the first time during the current financial year.
The IASB has amended and newly adopted the following standards, which have been approved by the EU as
valid European regulations, requiring mandatory application for the fiscal year 2013. ATON has adopted all
accounting pronouncements required to be applied as from January 1, 2013.
Amendments to IAS 1 „Presentation of Financial Statements – Presentation of Items of Other Comprehensive
Income” (Effective Date: July, 1, 2012). The amendment deals with the presentation of items of other comprehensive income. It requires items of other comprehensive income to be presented separately by items that will
never be reclassified to profit or loss and items that may be reclassified subsequently to profit or loss if certain
conditions are met. In addition, the related tax effects must be allocated to these two groups of items. The
Group has modified the statement of comprehensive income in the consolidated financial statements in line
with this. The other amendments to IAS 1 do not affect the presentation of the Group’s net assets, financial
position and results of operation.
Amendments to IAS 19 „Employee Benefits“ (Effective Date: January 1, 2013). The amendments address the
recognition and measurement of the expense for defined benefit plans and termination benefits. The main effect for the Group relates to the recognition of actuarial gains and losses. Recognition over a longer period of
time in the statement of comprehensive income using the corridor method has been replaced by full recognition
of actuarial gains and losses in other comprehensive income. If IAS 19 “Employee Benefits” applicable until
31 December 2012 had still been applied, long-term accounts receivable and other receivables in the consolidated statement of financial position as at 31 December 2013 would have increased by EUR 2.0 million, and
provisions for pensions would have decreased by EUR 6.1 million. Further amendments insignificant for the
Group relate to the introduction of the net interest method for determining the net interest expense or income
on the net defined benefit liability or assets, the immediate recognition of unvested past service cost in profit or
loss and the amended disclosures in the notes. According to the provisions of IAS 19 (revised 2011), top-up
payments in the context of accounting for partial retirement arrangements are no longer treated as termination
benefits. Consequently, the top-up payments are no longer recorded in their full amount as voluntary termination benefits when the offer of a partial retirement contract is made, but are treated as other long-term employee benefits. This means that the expense is spread over the period during which the benefits are earned (active
phase). Since all of the partial retirement arrangements within the Group were already in the passive phase by
the end of 2012, no effects arose in 2013.
Page 3
The following tables present the main effects of the revised IAS 19.
Consolidated statement of financial position
31.12.2012
in EUR'000
Total Assets
reported Restatement
restated
01.01.2012
restated
1,498,106
-3,958
1,494,148
1,414,703
-2,421
1,412,282
17,174
203
17,377
14,186
0
14,186
5,508
-4,161
1,347
6,439
-2,421
4,018
Total Equity
699,943
-5,170
694,773
645,074
-1,659
643,415
thereof retained earnings incl. profit and loss
of the Group
-48,081
-648
-48,729
-178,638
0
-178,638
15,140
-4,522
10,618
12,477
-1,659
10,818
798,163
1,212
799,375
769,629
-762
768,867
thereof deferred tax assets
thereof non-current trade and other receivables
thereof total other comprehensive income
Total Liabilities
thereof provision for pensions
14,667
3,183
17,850
6,898
-54
6,844
thereof deferred tax liabilities
44,560
-1,971
42,589
23,898
-708
23,290
Consolidated income statement
Financial year 2012
in EUR'000
restated
Earnings before interest and taxes (EBIT)
174,200
-4,442
169,758
-917,697
-4,442
-922,139
-19,209
1,318
-17,891
thereof personnel expenses
Financial result
thereof interest income
2,247
1,196
3,443
thereof interest expense
-20,591
122
-20,469
Income taxes
-46,580
912
-45,668
Profit or loss after taxes
108,411
-2,212
106,199
Consolidated statement of comprehensive income
Financial year 2012
in EUR'000
restated
Profit or loss after taxes
108,411
-2,212
106,199
0
-2,863
-2,863
Items that will not reclassified to profit or loss
Other comprehensive income, net of income taxes
Total comprehensive income for the period
0
-2,863
-2,863
2,390
-2,863
-473
110,801
-5,075
105,726
IFRS 13, „Fair Value Measurement“ (Effective Date: January 1, 2013). The standard defines fair value in a consistent manner for all IFRS and sets out a standard-wide framework for measuring fair value. In addition, the
disclosures on fair value are extended by the new standard. Information has been added about the levels of the
fair value hierarchy within which certain assets and liabilities are categorized, along with further explanatory
notes on fair value measurement. Fair value measurement did not materially affect the presentation of the net
assets, financial position and results of operation in the Group’s consolidated financial statements.
Page 4
New and amended standards and interpretations not applied.
The ATON Group did not early adopt the following accounting standards published by the IASB in its
consolidated financial statements for the financial year 2013 because the application was not yet mandatory
and the endorsement by the EU is still pending.
Standards/
amendments
Endorsement
EU mandatory
application*1)
Expected
effect
IFRS 7 / IFRS 9
Mandatory Effective Date and Transition
Disclosures
No
Date of initial application was postponed
No material effects
IFRS 9
Financial Instruments: Classification and
Measurement
No
01.01.2018
No material effects
IFRS 9
Financial Instruments: Hedge Accounting
No
01.01.2018
No material effects
IFRS 10
Consolidated Financial Statements
Yes
01.01.2014
No material effects
IFRS 11
Joint Arrangements
Yes
01.01.2014
Revenue
EUR -69,4 million
EBIT
EUR -6,4 million
Net financial result
EUR +6,4 million
IFRS 12
Disclosures of Interest in Other Entities
Yes
01.01.2014
None
Transition Guidance on IFRS 10, IFRS 11,
IFRS 12
Yes
01.01.2014
None
Investment Entities (Amendments to IFRS
10, IFRS 11, IAS 27)
Yes
01.01.2014
None
IFRS 14
Regulatory Deferral Accounts
No
01.01.2016
None
IAS 19
Employee Benefits: Defined Benefit Plans Employee Contributions
No
01.01.2015
None
IAS 27
Separate Financial Statements
Yes
01.01.2014
None
IAS 28
Investment in Associates and Joint Ventures
Yes
01.01.2014
No material effects
IAS 32
Financial Instruments: Presentation Offsetting Financial Assets and Financial
Liabilities
Yes
01.01.2014
No material effects
IAS 36
Impairment of Assets: Disclosures of the
recoverable Amount for Non-Financial
Assets
Yes
01.01.2014
None
IAS 39
Financial Instruments: Novation of Derivatives and Continuation of Hedge Accounting
Yes
01.01.2014
No material effects
Improvements to IFRSs 20122)
No
01.07.2014/
01.01.2015
No material effects
Improvements to IFRSs 20133)
No
01.01.2015
No material effects
IFRIC 21
Levies
No
01.01.2014
None
* Mandatory application in accordance with IFRSs for financial years beginning on or after the date given
1) In accordance with § 315a HGB, application is not mandatory for standards and interpretations that have not yet been endorsed by the
EU
2) Minor amendments to a number of IFRSs (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16/38, IAS 24)
3) Minor amendments to a number of IFRSs (IFRS 1, IFRS 3, IFRS 13, IAS 40)
Page 5
IFRS 11, “Joint Arrangements“ (Effective Date: January 1, 2014) focuses on the rights and obligations of the
parties to the arrangements rather than its legal form. There are two types of joint arrangements: joint
operations and joint ventures. Joint operations arise where the investors have rights to the assets and
obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities,
revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the
arrangement; joint ventures are accounted for under the equity method. The Group will no longer be permitted
to proportionally consolidate its joint arrangements. Under IFRS 11, revenue as at 31 December 2013 would
have decreased by EUR 69.4 million, and earnings before interest and taxes (EBIT) would have decreased by
EUR 6.4 million with an increase in net financial result by EUR 6.4 million at the same time.
2.3.
Material changes in accordance with IAS 8
The amended IAS 19 Employee Benefits has been applied in the financial year 2013 for the first time. The
prior-year figures have been adjusted accordingly to IAS 19.173 in conjunction with IAS 8.19 (a). With respect
to the impacts of the amended accounting standards to the opening statement of financial position as at
1 January 2013 as well as the presented prior-year figures, please refer to Note 2.2 Application of new,
amended and revised standards.
2.4.
Scope of consolidation and consolidation principles
ATON’s investees comprise subsidiaries, associates and joint ventures.
Subsidiaries
In addition to ATON GmbH, the consolidated financial statements include all material subsidiaries whose
financial and operating policies ATON is able to govern in such way that it can obtain benefits from the activites
of these companies.
Subsidiaries are fully consolidated from the date on which the Group gains control. When the power to govern
the financial and operating policies ceases, the Group deconsolidates the subsidiary as at this date.
Intercompany profit or losses and income, expenses arising from transactions within the scope of consolidation
are eliminated, as are receivables and liabilities existing between consolidated companies. Unrealised gains
and losses in non-current assets and in inventories arising from intra-Group transactions are removed.
Consolidation entries with effect on profit or loss are recorded together with the related deferred tax effect.
All business combinations are accounted for using the acquisition method. The cost of a business acquisition is
measured according to the fair values of the assets acquired and the liabilities entered into or assumed at the
date of the acquisition. Acquisition-related costs are recognised as expenses at the date when they are
incurred. The identifiable assets acquired in a business combination and the liabilities assumed are measured
at their fair value at the date of acquisition, irrespective of the extent of any non-controlling interests in the
equity. Non-controlling interests are measured either at their fair value (full goodwill method) or at their
proportionate share of the fair value of the assets acquired and liabilities assumed. The amount by which the
total of the cost of the acquisition, the amount of the non-controlling interests in the business acquired and the
Page 6
fair value of any previously held equity interests at the date of acquisition exceeds the Group’s share of the net
assets measured at fair value is recognised as goodwill. If the cost of the acquisition is lower than the fair value
of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement.
After initial recognition, profits and losses are attributed on an unlimited basis in proportion to the
shareholdings, which may also result in a negative balance for non-controlling interests.
Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability
are measured in accordance with IAS 39, and a resulting profit or loss is recorded in the income statement.
In cases where business acquisitions are achieved in stages, the equity share acquired before is remeasured
at the fair value at the acquisition date. Transactions not resulting in a loss of control are recorded as equity
transactions with no effect on profit or loss for non-controlling interests. At the date on which control is lost, all
remaining shares are remeasured at their fair value through profit or loss.
Joint ventures
A joint venture is a contractual arrangement under which the Group and other contractual parties engage in a
business activity that is subject to joint control. This is the case if the strategic financial and operating policies
relating to the business activities of the joint venture require the unanimous consent of the parties sharing
control. If a Group company directly engages in activities in the context of a joint venture arrangement, the
Group’s share of the assets and liabilities under joint control acquired jointly with other capital providers are
recognised in the financial statements of the relevant company and classified according to their nature. The
liabilities and expenses relating to the share of the assets under joint control are reflected in the financial
statements in accordance with the accruals principle of accounting. Income from the sale or use of the Group’s
share of the goods and services provided by the joint venture and its share of the expenses of the joint venture
are recognised if it is probable that the economic benefits associated with these transactions will flow to or from
the Group, respectively, and the amount can be reliably determined. Joint venture arrangements which provide
for the establishment of a separate entity in which each partner holds a share are described as arrangements
under joint control. The Group accounts for its investments in arrangements under joint control using
proportional consolidation, unless the investment has been classified as available for sale. In this event, it is
accounted for under non-current assets of disposal group classified as held for sale in accordance with IFRS 5.
The Group’s share of the assets, liabilities, income and expenses of arrangements under joint control is
allocated to the corresponding line items in the consolidated financial statements. Any goodwill arising from the
purchase of the Group’s investment in an arrangement under joint control is accounted for in keeping with the
Group’s accounting policies for goodwill arising from the acquisition of a subsidiary. If the Group enters into
business relations with an entity under joint control, the profits and losses are eliminated to the extent of the
Group’s interest in the joint venture.
Page 7
Investments accounted for under the equity method
The ATON Group accounts for associates using the equity method.
An associate is an entity over which the group has significant influence but not control, and which is not an
interest in a joint venture. Significant influence is generally accompanied by a share of 20% to 50% of the
voting rights. Excluded are investments in associates, which are accounted for under IFRS 5 as non-current
assets held for sale and discontinued operations.
Based on the acquisition cost at the time of acquiring the shares in an associate, the relevant book value of the
participation is increased or reduced to take account of the proportional profits or losses and movements in
other comprehensive income as are allocable to the ATON Group. Goodwill arising from the acquisition of an
associate is included in the book value of the investment and is not amortized; rather it is tested for impairment
as part of the overall investment in the associate.
If the ATON Group’s share of losses of an investment accounted for using the equity method equals or exceeds
its interest in the associate, no further losses are recognised, unless the Group has incurred legal or
constructive obligations or made payments on behalf of the associate.
Unrealised intercompany profits and losses resulting from transactions by the Group companies with
associates are eliminated in the profit or loss of the Group companies on a pro-rata basis.
The Group tests at each reporting date whether there is any objective evidence that an impairment loss must
be recognised in profit and loss regarding an investment accounted for using the equity method. If such
evidence exists, the group calculates the impairment loss as the difference between the book value and the
recoverable amount.
The companies included in the consolidated Group as at 31 December 2013 are as follows.
Germany
Fully consolidated companies
International
Total
Prior Year
40
84
124
119
Associates
1
1
2
4
Joint ventures
0
3
3
0
41
88
129
123
Companies within the scope of consolidation
For a complete overview, please refer to the list of shareholdings.
Investments of minor significance are recognised at their respective acquisition cost or lower fair value and are
not consolidated. Companies are classified to be of minor significance if their cumulated share of revenue,
annual results and total assets in total amount to less than 1% of consolidated revenue, annual result and total
assets, and if they are therefore not relevant for the presentation of a true and fair view of the Group’s net
assets, financial position, and profit or loss, as well as its cash flows.
The following German subsidiaries, having the legal form of a corporation or of a partnership within the
meaning of § 264a HGB, have satisfied the necessary conditions in accordance with § 264 (3) and § 264b HGB
for making use of the exemption provision and therefore do not publish their annual financial statements.
Page 8
Name of company
Registered
office
FFT GmbH & Co. KGaA
Fulda
FFT Produktionssysteme GmbH & Co. KG
Fulda
Reform Maschinenfabrik Adolf Seifner GmbH & Co. KG
Fulda
2.5.
Currency translation
The consolidated financial statements are prepared in Euro, the reporting currency of ATON GmbH. The
functional currency of the subsidiaries is generally the same as the company’s respective national currency
since the subsidiaries run their operations independently from a financial, economic and organisational point of
view.
Foreign currency transactions in the separate financial statements of the Group companies are translated into
the functional currency using the exchange rates at the transaction date. At each reporting date, monetary
assets and liabilities whose amount is expressed in a foreign currency are translated at the closing rate. Nonmonetary assets and liabilities measured at fair value and whose amount is expressed in a foreign currency are
translated at the date on which the fair value is determined. Currency translation gains and losses are recorded
in profit or loss. An exception is made in the case of currency translation differences relating to non-monetary
assets and liabilities, changes in whose fair values are recognised directly in equity.
The earnings and balance sheet items of all Group companies with a functional currency other than the Euro
are translated into Euro as the reporting currency. The assets and liabilities of the relevant Group companies
are translated at the closing rate. Items of income and expenses are translated at average exchange rates for
the period, except where those exchange rates are subject to significant fluctuations. Components of equity are
translated at historical rates at the respective dates at which they were initially recognised from the point of
view of the Group.
Differences arising with respect to the translation of assets and liabilities at closing rates are reported
separately in equity and in the disclosures in the notes under "Currency translation". Currency translation
differences recorded directly in equity while the subsidiary forms part of the Group are reclassified to profit or
loss when the subsidiary leaves the scope of consolidation.
Page 9
Goodwill and fair value adjustments arising on the acquisition of a foreign company are treated as assets and
liabilities of the foreign company and translated at the closing rate.
The exchange rates for the translation of the financial statements in foreign currencies in relation to the Euro
have developed as follows (in each case for 1 EUR).
Country
Currency
Units per Euro
2013
Closing rate
2012
Average rate
Closing rate
Average rate
Australia
Dollar
AUD
1.5423
1.3777
1.2712
1.2407
Brazil
Real
BRL
3.2576
2.8687
2.7036
2.5084
Canada
Dollar
CAD
1.4671
1.3684
1.3137
1.2842
China
Renminbi
CNY
8.3491
8.1646
8.2207
8.1052
United Kingdom
Pound
GBP
0.8337
0.8493
0.8161
0.8109
India
Rupee
INR
85.3660
77.9300
72.5600
68.5973
Japan
Yen
JPY
144.7200
129.6600
113.6100
102.4900
Korea
Won
KRW
1,450.9300
1,453.9100
1,406.2300
1,447.6900
Malaysia
Ringgit
MYR
4.5221
4.1855
4.0347
3.9672
Mexico
Peso
MXN
18.0731
16.9641
17.1845
16.9029
Namibia
Dollar
NAD
14.2665
13.4916
10.7423
11.1566
Norway
Krone
NOK
8.3630
7.8067
7.3483
7.4751
Poland
Zloty
PLN
4.1543
4.1975
4.0740
4.1847
Romania
Leu
RON
4.4710
4.4190
4.4445
4.4593
Russian Federation
Rouble
RUB
45.3246
42.3370
40.3295
39.9262
Zambia
Kwacha
ZMK
7,125.5600
7,091.5900
6,851.8700
6,604.9400
Sweden
Krone
SEK
8.8591
8.6515
8.5820
8.7041
Switzerland
Franc
CHF
1.2276
1.2311
1.2072
1.2053
Singapore
Dollar
SGD
1.7414
1.6619
1.6111
1.6055
South Africa
Rand
ZAR
14.5660
12.8330
11.1727
10.5511
Czech Republic
Koruna
CZK
27.4270
25.9800
25.1510
25.1490
Hungary
Forint
HUF
297.0400
296.8700
292.3000
289.2500
USA
Dollar
USD
1.3791
1.3281
1.3194
1.2848
Page 10
3.
Summary of significant accounting policies
3.1.
Goodwill
Goodwill is not amortised but is tested annually for impairment. An impairment test is also carried out during the
financial year if events or circumstances (triggering events) occur giving rise to indications of possible
impairment. Goodwill is reported on the basis of its purchase cost at the date of acquisition and measured in
subsequent periods at its purchase cost less all accumulated impairment losses. For the purposes of
impairment testing, goodwill acquired in the context of a business combination is allocated to the cashgenerating unit or group of cash-generating units which are expected to benefit from the synergies of the
combination. A cash-generating unit is the smallest identifiable group of assets capable of generating cash
inflows that are largely independent of the cash inflows from other assets or other groups of assets. If the
recoverable amount of a cash-generating unit is less than the carrying amount of the unit, the impairment loss
is allocated firstly to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets pro rata on the basis of the carrying amount of each asset within the unit. The recoverable amount is the
higher of the fair value of the unit less costs to sell and its value in use. As a matter of principle, the ATON
Group utilises the value in use of the relevant cash-generating units to determine the recoverable amount. This
is based on the current business plan prepared by management which generally covers a period of three years.
Reasonable assumptions are made with respect to the future development of the business for the subsequent
years. The cash flows are determined on the basis of the expected growth rates in the relevant sectors and
markets. The cash flows after the end of the detailed planning period are estimated using individual growth
rates derived from information relating to the particular market of no more than 1 % p.a. Individual discount
rates for the particular cash-generating units between 5.5 % and 11.6 % (previous year: 6.6 % and 10.8 %) are
used for the purpose of determining the value in use. A goodwill impairment loss recognised in one period may
not be reversed in future periods. In the event of the sale of a subsidiary, the attributable amount of goodwill is
included in the calculation of the gain or loss on disposal. The treatment of goodwill arising on the acquisition of
an associate is described under "Investments in associates".
3.2.
Other intangible assets
Purchased intangible assets are measured at cost and amortised on a straight-line basis over their economic
useful lives. Other intangible assets mainly comprise software, together with patents, licences and similar
rights. The expected useful life for concessions, patents and similar rights is generally defined between two and
fifteen years and, for software between three and five years.
Research costs are expensed in the period in which they are incurred.
The development costs of a project are only capitalised as an intangible asset if the company can demonstrate
both the technical feasibility of completing the intangible asset so that it will be available for use or sale and
also the intention to complete the intangible asset and to use or sell it. It must also demonstrate how the asset
will generate future economic benefits, the availability of resources for the purpose of completing the asset and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
Page 11
The cost of an internally generated intangible asset is the total of the directly attributable direct costs and
overheads incurred from the date when the intangible asset first meets the recognition criteria described above.
Financing costs are not capitalised except in the case of qualifying assets. Internally generated intangible
assets are amortised on a straight-line basis over their economic useful lives of three years. Amortisation in the
case of internally generated intangible assets begins when the asset is available for use, i.e. when it is in the
condition necessary for it to be capable of operating in the manner intended by management.
In cases where it is not possible to recognise an internally generated intangible asset, the costs of development
are expensed in the period in which they are incurred.
Intangible assets acquired as part of a business combination are recorded separately from goodwill if the fair
value of the asset can be reliably measured. The cost of such an intangible asset is its fair value at the date of
acquisition. The intangible assets acquired in the context of acquisitions related mainly to order backlog and
customer relationships. The corresponding expected average useful lives are between one and four years in
the case of order backlog and between two and ten years in the case of customer relationships.
Intangible assets with indefinite useful lives are not amortised but are tested annually for possible impairment. If
events or changes in circumstances occur giving indications of possible impairment, impairment testing must
be carried out more frequently. Further details of the procedure for annual impairment tests are provided under
Note 3.4 Impairment of property, plant and equipment and other intangible assets. In the reporting periods
presented, intangible assets with indefinite useful lives did not exist in the Group.
3.3.
Items of property, plant and equipment used in the business for longer than one year are recognised at the cost
of acquisition or production less straight-line depreciation and accumulated impairment losses. The cost of
production comprises all directly attributable costs and appropriate portions of production-related overheads.
Investment grants are generally deducted from the cost of the asset. If the production or acquisition of items of
property, plant and equipment is spread over a longer period, borrowing costs incurred up to the date of
completion are capitalised as a component of cost in conformity with the provisions of IAS 23. If the costs of
particular components are significant in relation to the total cost of the item of property, plant and equipment,
then those components are capitalised and depreciated separately. The cost of replacing a part of the item of
property, plant and equipment is included in the carrying amount of that item at the date when it is incurred,
provided that the criteria for recognition are satisfied. The cost of carrying out a major inspection is also
recognised in the carrying amount of property, plant and equipment as a replacement, provided that the
recognition criteria are met. All other servicing and maintenance costs are recorded immediately in the income
statement. Subsequent costs of acquisition or production are only recognised as part of the cost of the asset if
it is probable that it will bring future economic benefit to the Group and if the cost of the asset can be reliably
determined.
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The useful lives of the principal categories of assets of the Group are determined using comparative tables
customary in the industry and on the basis of its own past experience, which can be classified as follows.
Buildings
Useful life in years
10 to 60
Technical equipment and machinery (excluding mining and construction machinery)
5 to 25
Other machinery and equipment
3 to 10
Operating and office equipment
2 to 25
3.4.
Impairment of property, plant and equipment and other intangible assets
At each reporting date or if relevant events have occurred, the Group assesses whether there is any indication
that items of property, plant and equipment and intangible assets may be impaired. If such indications are
identified, the recoverable amount of the asset is estimated in order to establish the extent of any impairment
loss. The recoverable amount is calculated as the higher of fair value less costs to sell ("net realisable value")
and the present value of the expected net cash inflows from the continuing use of the asset ("value in use"). If it
is not possible to forecast the expected cash inflows for an individual asset, the cash inflows are estimated for
the next largest group of assets that generates cash inflows that are largely independent of those from other
assets (cash-generating unit) to which the asset belongs.
For the purpose of estimating value in use, the estimated future cash flows are discounted to their present
value using a pre-tax rate of interest. If the estimated recoverable amount of an asset (or of a cash-generating
unit) falls below its carrying amount, the carrying amount of the asset (or of the cash-generating unit) is reduced
to the recoverable amount. First, any goodwill allocated to the cash-generating unit is impaired and any
remaining impairment loss is then allocated to the other assets of the unit on the basis of the carrying amount
of each asset in the unit.
The impairment loss is recognised immediately in the income statement. If the impairment loss is subsequently
reversed, the carrying amount of the asset (or of the cash-generating unit) is increased to the updated estimate
of the recoverable amount. The carrying amount resulting from this increase must not exceed the carrying
amount that would have been determined for the asset (or the cash-generating unit) if an impairment loss had
not been recognised in prior periods. The reversal of an impairment loss is recorded immediately in the income
statement. Impairment losses recognised in respect of goodwill may not be reversed.
Internally generated intangible assets that have not yet been completed are tested for impairment at least once
a year.
3.5.
Cash reported in the balance sheet comprises cheques, cash-in-hand and balances with banks with an original
maturity of up to three months. Cash equivalents reported in the balance sheet consist of short-term, highly
liquid financial assets that can be converted into specified amounts of cash at any time and are exposed only to
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insignificant risks of fluctuations in value. Cash and cash equivalents are measured at amortised cost. Cash
funds in the consolidated statement of cash flows are defined in accordance with the above definition.
3.6.
Investment properties
This item refers to property held for the purpose of generating rental income and/or increase in value (including
property being constructed or developed and intended for such purposes). Investment properties are initially
recognised at cost, including transaction costs. In subsequent periods, investment properties are recorded at
amortised cost net of accumulated straight-line depreciation and impairment losses. The useful life is between
50 and 60 years.
3.7.
Leases
The Group as lessee
Leases are classified as finance leases if substantially all of the risks and rewards associated with the
ownership of the asset are transferred to the lessee under the lease agreement. All other leases are classified
as operating leases. The rules described in this section also apply to sale and leaseback transactions.
Assets held under the terms of a finance lease are initially recognised as assets of the Group at their fair value
at the start of the lease or, if lower, the present value of the minimum lease payments. The corresponding
liability to the lessor is reported in the balance sheet as an obligation from finance leases. The lease payments
are divided into interest expense and repayment of the lease commitment in such a way that the interest on the
remaining liability remains constant. The interest expense is recorded directly in the income statement.
Conditional lease payments are recognised as an expense in the period in which they arise.
Rental payments under operating leases are expensed on a straight-line basis over the term of the lease,
unless another systematic basis is more representative of the time pattern of the lessee’s benefit. Conditional
rental payments under the terms of an operating lease are recorded as an expense in the income statement in
the period in which they arise.
In cases where incentives to enter into an operating lease have been received, those incentives are recorded
as a liability. The cumulative benefit of incentives is recognised on a straight-line basis as a reduction of the
rental payments, unless another systematic basis is more representative of the time pattern of the benefit from
the leased asset.
The Group as lessor
Leases under which substantially all the risks and rewards of ownership are retained by the Group are
classified as operating leases. The leased assets continue to be capitalised by ATON. Initial direct costs
incurred in negotiating and concluding a lease agreement are added to the carrying amount of the leased asset
and expensed over the term of the lease agreement in a manner corresponding to the recognition of the rental
income. Conditional rental payments are recorded in the period in which they are generated.
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3.8.
Reparable aircraft spare parts
For the purpose of measuring reparable aircraft spare parts, the spare parts are allocated to the individual
aircraft models and depreciated over the remaining useful life of the respective aircraft model, taking into
account estimated residual values. Residual values and useful lives are reviewed at each reporting date.
Changes in the residual values and their effects on annual depreciation charges are reflected prospectively in
accordance with IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors” in the period of the
change and the subsequent periods.
3.9.
Inventories
Inventories are valued at the lower of acquisition or production cost and their net realisable value on the
reporting date. The net realisable value is the estimated selling price in the ordinary course of business less
direct selling costs and directly attributable production costs still to be incurred. If the net realisable value is
lower than the carrying amount, an impairment loss is recognised.
The cost of raw materials, consumables and supplies is mainly determined at average purchase prices, which
are calculated on the basis of a moving average.
In addition to direct material costs, direct labour costs and special direct costs, the production costs of
unfinished and finished goods include all directly attributable production-related overheads. General
administrative costs and financing costs are not capitalised, except in the case of a qualifying asset. The
production costs are determined on the basis of normal production capacity.
The purchasing cost of merchandise also includes incidental costs of purchase.
3.10.
Non-current assets held for sale and disposal groups
Non-current assets or disposal groups are classified as held for sale if the associated carrying amount is mainly
intended to be realised by means of a sale and not from continuing use. This condition is considered to have
been satisfied only if the sale is highly probable and the asset (or the disposal group) is available for immediate
sale in its current condition. Management must be committed to a plan for the sale of the asset (or the disposal
group) and must have initiated an active programme to locate a buyer and to implement the plan. In addition,
the asset (or the disposal group) must be actively marketed at a price that is reasonable in relation to its current
fair value. There must be an expectation that this will result in the recognition of a completed sale transaction
within one year of such classification. Depreciation is suspended in such cases. Non-current assets (and
disposal groups) classified as held for sale are measured at the lower of their original carrying amount and their
fair value less costs to sell.
3.11.
Financial assets
Financial assets are divided into the following categories: financial assets at fair value through profit or loss,
held-to-maturity financial investments, loans and receivables and available-for-sale financial assets.
Management determines the classification of the financial assets at initial recognition.
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Financial assets are initially measured at fair value. In the case of financial investments other than those
classified as at fair value through profit or loss, transaction costs directly attributable to the purchase of the
asset are also included in the carrying amount.
All purchases and sales of financial assets customary in the market are recorded in the financial statements at
the trade date, i.e. the date on which the Group has entered into the obligation to buy or sell the asset.
Financial assets at fair value through profit or loss (FAHfT)
The category of financial assets at fair value through profit or loss comprises financial assets held for trading
purposes and those designated as at fair value through profit or loss on initial recognition. Financial assets are
classified as held for trading if they are acquired for the purposes of sale in the near future. Derivatives for
which hedge accounting is not applied are also classified as held for trading. Financial assets are measured at
fair value in subsequent periods. Gains or losses from financial assets held for trading and changes in the fair
value of financial investments designated into this category are recorded in profit or loss. Changes in the fair
value of derivative financial instruments are reported either in the income statement or, in the case of cash flow
hedges, directly in equity after reflecting deferred taxes.
Held-to-maturity investments (HtM)
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates are classified as
held-to-maturity investments if the Group has the intention and ability to hold them to maturity. After initial
recognition, held-to-maturity investments are measured at amortised cost using the effective interest method.
Gains and losses are recorded in the income statement for the period when the investments are derecognised
or impaired, and also in relation to the amortisation process.
Loans and receivables (LaR)
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted on an active market. After initial recognition, loans and receivables are measured at amortised cost
using the effective interest method less any impairment losses. Gains and losses are recorded in the income
statement for the period when the loans and receivables are derecognised or impaired, and also in relation to
the amortisation process.
Interest expenses arising from the sale of receivables are included in the net financial result. Management fees
are reported in other operating expenses.
Cash and cash equivalents, including cash accounts and short-term deposits with banks, have a remaining
maturity of up to three months on initial recognition and are measured at amortised cost.
Available-for-sale financial assets (AfS)
Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale
or have not been classified into one of the three previously mentioned categories. After initial recognition,
available-for-sale financial assets are measured at fair value. Unrealised gains or losses are recorded directly
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in equity. If a financial asset in this category is derecognised or impaired, the accumulated gain or loss
previously recorded directly in equity is recognised in the income statement.
Fair value
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction in the principal or most advantageous market at the measurement date under current market
conditions. It is regardless of whether that price is directly observable or estimated using another valuation
technique. Those valuation techniques include using recent arm’s length market transactions between
knowledgeable, willing parties, reference to the current fair value of another financial instrument that is
substantially the same, discounted cash flow analysis and the use of other valuation models incorporating
current market parameters. If the fair value cannot be reliably determined, the financial instruments are
recognised at their carrying amount.
Fair value hierarchy:
The measurement and presentation of the fair values of financial instruments is based on a fair value hierarchy
that categorises the valuation techniques and input factors used to measure fair value into three levels.
Level 1: Quoted prices (adopted unchanged) on active markets for identical assets and liabilities.
Level 2: Input data for the asset or liability observable either directly or indirectly which do not represent quoted
prices according to level 1. The fair values of level 2 financial instruments are determined on the basis of the
conditions prevailing at the end of the reporting period, such as exchange rates or interest rates, and using
recognised valuation models.
Level 3: Input data for the asset or liability not based on observable market data (unobservable input data).
Amortised cost
Held-to-maturity investments as well as loans and receivables are measured at amortised cost. Amortised cost
is determined using the effective interest method less any valuation allowances and taking into account
discounts and premiums on acquisition, and includes transaction costs and fees that form an integral part of the
effective interest rate.
Impairment of financial assets
At each reporting date, the Group tests whether there are objective indications that a financial asset or a group
of financial assets may be impaired. A financial asset or a group of financial assets is impaired only if there is
objective evidence of impairment as a result of one or more events that occurred after the initial recognition of
the asset, and if that loss event (or events) has an impact on the estimated future cash flows of the financial
asset or group of financial assets that can be reliably estimated.
A potential impairment loss is assumed to exist in respect of assets measured at amortised cost in the case of
certain events such as failure to make payments over a particular period, the initiation of enforcement
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measures, impending insolvency or over indebtedness, an application for or initiation of bankruptcy
proceedings or the failure of a restructuring programme.
If impairment has occurred in the case of assets measured at amortised cost, the amount of the impairment
loss is calculated as the difference between the carrying amount of the asset and the present value of the
expected future cash flows (with the exception of expected future loan defaults that have not yet occurred),
discounted at the original effective interest rate of the financial asset, i.e. the effective interest rate determined
on initial recognition. The carrying amount of the asset is reduced using a valuation allowance account in the
case of trade and other receivables, and directly in the case of other assets within this category. The
impairment loss is recorded in the income statement. Valuation allowances are created in the form of individual
valuation allowances. The receivables are derecognised if they are classified as uncollectible, i.e. a cash inflow
is no longer expected to occur.
If the amount of the impairment loss decreases in the subsequent reporting periods and if this decrease can be
objectively attributed to an event that occurred after the impairment loss was recorded, the impairment loss
previously recognised is reversed. However, the revised carrying amount of the asset may not exceed its
amortised cost at the date of the reversal. The reversal is recorded in profit or loss.
If the value of an available-for-sale financial asset is impaired, an amount equal to the difference between the
acquisition cost of the asset (less any principal repayments and amortisation) and its current fair value (less any
impairment losses previously recognised in the income statement) is reclassified into profit or loss from the
amount previously recorded in equity. Impairment losses in the case of equity instruments classified as
available for sale may not be reversed through profit or loss. Reductions in impairment losses in the case of
debt instruments classified as available for sale are recognised in profit or loss if the increase in the fair value of
the instrument can be objectively related to an event occurring after the impairment loss was recognised in the
income statement.
In contrast, available-for-sale equity investments for which there is no quoted value on an active market are
measured at cost in subsequent periods. If the recoverable amount is lower than the carrying amount at the
reporting date, an impairment loss is recognised in the income statement. Such impairment losses may not be
subsequently reversed.
3.12.
Financial liabilities are classified either as financial liabilities at fair value through profit or loss or other financial
liabilities measured at amortised cost.
Financial liabilities are measured at their fair value on initial recognition. Directly attributable transaction costs
are also recognised in the case of all financial liabilities not subsequently measured at fair value through profit
or loss.
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Financial liabilities at fair value through profit or loss (FLHfT)
The category of financial liabilities at fair value through profit or loss comprises financial liabilities held for
trading purposes and those designated as at fair value through profit or loss on initial recognition. Financial
liabilities are classified as held for trading if they are entered into with a view to their purchase in the near
future. Derivatives for which hedge accounting is not applied are also classified as held for trading. Financial
liabilities are measured at fair value in subsequent periods. Gains or losses from financial liabilities that are held
for trading are recorded in the income statement. Changes in the fair value of derivative financial instruments
are reported either in the income statement or, in the case of cash flow hedges, directly in equity after reflecting
deferred taxes. No financial liabilities were designated as at fair value through profit or loss during the financial
year.
Amortised cost
Trade payables and other non-derivative financial liabilities are generally measured at amortised cost using the
effective interest method.
3.13.
Derecognition of financial assets and financial liabilities
Financial assets
A financial asset (or a portion of a financial asset or a portion of a group of similar financial assets) is
derecognised if one of the three following preconditions is met:
•
The contractual rights to receive the cash flows from a financial asset have expired.
•
While the Group retains the rights to receive the cash flows from a financial asset, it assumes a contractual obligation to pay the cash flows immediately to a third party under an arrangement that satisfies
the conditions of IAS 39.19 (pass-through arrangement).
•
The Group has transferred its contractual rights to receive the cash flows from a financial asset and in
doing so has transferred substantially all the risks and rewards associated with ownership of the financial asset or, while it has neither transferred nor retained substantially all the risks and rewards associated with ownership of the financial asset, has nevertheless transferred control over the asset.
If the Group transfers its contractual rights to the cash flows from an asset, neither transfers nor retains
substantially all the risks and rewards associated with ownership of that asset and at the same time also retains
control over the transferred asset, the Group continues to recognise the transferred asset to the extent of its
continuing involvement. When the continuing involvement takes the form of guaranteeing the transferred asset,
the extent of the continuing involvement is the lower of the original carrying amount of the asset and the
maximum amount of the consideration received that the Group could be required to repay. When the continuing
involvement takes the form of a written and/or a purchased option on the transferred asset (including an option
settled in cash or by a similar method), the extent of the Group’s continuing involvement is the amount of the
transferred asset that it may repurchase. However, in the case of a written put option (including an option
settled in cash or by a similar method) on an asset that is measured at fair value, the extent of the Group’s
Page 19
continuing involvement is limited to the lower of the fair value of the transferred asset and the exercise price of
the option.
A financial liability is derecognised when the underlying obligation is discharged or cancelled or has expired. If
an existing financial liability is exchanged for another financial liability of the same lender with substantially
different terms or if the terms of an existing liability are substantially modified, such exchange or modification is
accounted for as a derecognition of the original liability and the recognition of a new liability. The difference
between the respective carrying amounts is recognised in profit or loss.
3.14.
Derivative financial instruments
The Group uses derivative financial instruments such as forward exchange contracts and options in order to
hedge against currency risks. These derivative financial instruments are recorded at their fair value at the date
of inception of the contract and measured at their fair value in subsequent periods. Derivative financial
instruments are recognised as assets if they have a positive fair value and as liabilities if their fair value is
negative. Gains and losses from changes in the fair value of derivative financial instruments that do not meet
the criteria for hedge accounting are recognised immediately in the income statement. The fair value of forward
exchange contracts and options is calculated using recognised valuation models with reference to current
market parameters.
Cash flow hedges are used to hedge the risk of fluctuations in the future cash flows associated with a
recognised asset, a recognised liability or a highly probable forecast transaction. In the case of a cash flow
hedge, unrealised gains and losses on the hedging instrument are initially recorded in other comprehensive
income. They are reclassified into the income statement only when the hedged item affects profit or loss. If
forecast transactions are hedged and those transactions result in the recognition of a financial asset or a
financial liability in subsequent periods, the amounts recorded in equity up to that date are reclassified into
profit or loss in the same period in which the asset or the liability affects profit or loss. If the transactions result
in the recognition of a non-financial asset or liability, such as the purchase of property, plant or equipment, the
amounts recorded directly in equity are included in the initial carrying amount of the asset or the liability.
IAS 39 stipulates the conditions under which hedge accounting may be applied. Among other things, they must
be documented in detail and effective. A hedge is regarded as effective within the meaning of IAS 39 if changes
in the fair value of the hedging instrument are within a range of 80 to 125% of the contrary changes in the fair
value of the hedged item, both prospectively and retrospectively. Only the effective portion of a hedge may be
accounted for in accordance with the rules described. The ineffective portion is recorded immediately in the
income statement. If the contracts contain embedded derivatives, the derivatives are accounted for separately
from the underlying contract, unless the economic characteristics and risks of the embedded derivative are
closely related to those of the underlying contract. Written options for the purchase or sale of non-financial
items that can be settled in cash are not own-use contracts.
Page 20
3.15.
Provisions
A provision is recognised if the Group has a present obligation (legal or constructive) as a result of a past
event, an outflow of resources embodying economic benefits to settle the obligation is probable (more likely
than not) and the amount of the obligation can be estimated reliably. If the Group is expecting reimbursement in
respect of at least a portion of a provision recognised (such as in the case of an insurance policy), the
reimbursement is recognised as a separate asset to the extent that it is virtually certain that the reimbursement
will be received. The expense from the recognition of the provision is reported in the income statement net of
the reimbursement. If the interest effect from discounting is material, provisions are discounted at a pre-tax
interest rate which reflects the specific risks for the liability. In the event of discounting, the increase in the
provision over time is recorded as a financial expense.
3.16.
Employee benefits
Pension obligations
The Group has both defined benefit and defined contribution pension plans. A defined contribution plan is a
pension plan under which the Group pays fixed contributions to a company (fund) which is not a part of the
Group. The Group has no legal or constructive obligation to make further payments if the fund does not have
sufficient assets to pay all of the employees’ pension entitlements from the current and previous financial years.
In contrast, defined benefit plans typically specify an amount of pension benefits that an employee will receive
on retirement and which is generally dependent on one or more factors such as age, years of service and
salary.
The provision recognised in the statement of financial position in respect of defined benefit pension plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of the plan
assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit
credit method. The measurement of the obligation in the statement of financial position is based on a number of
actuarial assumptions. Assumptions are required to be made, in particular, about the long-term development
trend of salaries and pensions, and average life expectancy. The assumptions with respect to the trends in
salaries and pensions are based on developments observed in the past, and take into account the level of interest rates and inflation in the particular country and the respective developments in the labour market. Recognised biometric bases for actuarial calculations are used to estimate average life expectancy. The rate of
interest used to discount the future payment obligations is derived from currency and term congruent highquality corporate bonds.
Remeasurements arising from experience adjustments and changes in actuarial assumptions are recognised in
other comprehensive income in equity in the period in which they arise. Past-service cost is recognised
immediately in profit or loss.
Pension expenses are included in the personnel expenses with the exception of interest components which are
included in the net financial result.
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In the case of defined contribution plans, the Group pays contributions to state or private pension insurance
plans either on the basis of statutory or contractual obligations, or voluntarily. The Group has no further
payment obligations once the contributions have been paid. The amounts are recorded in personnel expenses
when they become due. Prepayments of contributions are recognised as assets to the extent that a right exists
to a refund or a reduction in future payments.
Termination benefits
Termination benefits are paid if employment is terminated by a Group company prior to the employee reaching
the regular retirement age or if an employee leaves the company voluntarily against a compensation payment.
The Group recognises severance payments when it is demonstrably committed to terminate the employment of
current employees in accordance with a detailed formal plan which cannot be withdrawn, or when it is
demonstrably required to make severance payments as a result of voluntary termination of employment by
employees. Payments that are due more than twelve months after the reporting date are discounted to their
present value.
3.17.
Revenue recognition
Revenue is measured at the fair value of the consideration received or to be received, less any expected
customer returns, discounts and other similar deductions. The Group recognises revenue when the amount of
the revenue can be reliably determined, when it is probable that future economic benefits will flow to the entity
as a result and when the specific criteria for each type of activity set out below have been satisfied.
Sale of goods
Revenue from the sale of goods is recognised when the following conditions have been met:
•
the Group has transferred the significant risks and rewards of ownership of the goods to the buyer,
•
the Group retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods and products sold,
•
the amount of the revenue can be measured reliably,
•
it is probable that the economic benefits associated with the transaction will flow to the entity, and the
costs incurred or yet to be incurred in connection with the sale can be measured reliably.
Rendering of services
Revenue from service agreements is recognised as income by reference to the stage of completion of the
transaction. The result of this is that contract income is recorded in the reporting period in which the service
was rendered. For information on the determination of the stage of completion, please refer to the details
provided under Note 3.18 Construction contracts.
Royalties
Income from royalties is recorded on an annual basis in accordance with the economic substance of the
relevant agreement. Time-based royalties are recognised over the period of the agreement on a straight-line
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basis. Income from royalty agreements based on production, sales or other measures is recognised in
accordance with the underlying agreement.
Dividends and interest
Dividend income from shares is recognised when the shareholder’s legal right to payment is established.
Interest income is recognised on an accruals basis according to the amount of the principal outstanding using
the applicable effective interest rate. The effective interest rate is the interest rate that exactly discounts the
expected future cash inflows over the life of the financial asset to the net carrying amount of that asset.
Rental income
Income from leasing and rental income from operating leases are recorded on a straight-line basis over the
rental period, provided that the Group is the economic owner.
3.18.
Construction contracts
The Group mainly develops engineering services projects, machinery manufacturing projects and tunnel
construction projects as long-term construction contracts, which are measured in accordance with the
percentage of completion (PoC) method if the contract revenues and expenses can be reliably determined. A
distinction is made between fixed price contracts and cost plus contracts. If the criteria for applying the
percentage of completion method in accordance with IAS 11 for a fixed price contract or a cost plus contract,
respectively, are satisfied, then the contract income and contract costs associated with this construction
contract are allocated to the financial years in accordance with the stage of completion.
The percentage of completion is determined by the ratio of the contract costs incurred by the reporting date to
the total contract costs estimated at the reporting date (cost-to-cost method). Contract costs include costs
directly attributable to the contract, all indirect costs of general contracting activity that can be attributed to the
contract and other costs specifically charged to the customer. If the projects are developed over a longer period
of time, borrowing costs incurred prior to completion may be included in the contract costs in accordance with
the conditions of IAS 23. Changes to contractual work, claims and incentive payments are included to the
extent that they have been agreed with the customer. Individual construction contracts are subdivided or
combined if specific criteria are satisfied.
If the outcome of the construction contract cannot be reliably estimated and the percentage of completion
method may therefore not be applied, contract revenue is recognised only to the extent of the contract costs
incurred that are expected to be recoverable. Contract costs are recognised as an expense in the period in
which they arise. If it is probable that the total contract costs will exceed total contract revenue, the expected
loss must be recorded in full as an expense immediately and a provision is recognised in respect of a lossmaking contract. The gross amount due from customers for contract work comprises the net amount of the
costs incurred plus profits recognised, less the total losses recognised and progress billings for all contracts in
progress for which costs incurred plus profits recognised exceed progress billings. If the progress billings are
higher, the contract represents an amount due to the customer. The gross amount due from customers for
Page 23
contract work is reported in the statement of financial position within the item "Trade and other receivables".
The gross amount due to customers from contract work is included in "Trade payables".
3.19.
Borrowing costs
Borrowing costs that can be directly allocated to the acquisition, construction or production of a qualifying asset
are capitalised as a component of the cost of that asset. Other borrowing costs are recognised as an expense
in the period in which they are incurred, if they are not also required to be capitalised under IAS 23.
3.20.
Government grants
Government grants are recognised only when there is reasonable assurance that the Group will comply with
the conditions attached to the grants and that the grants will also be received.
Government grants whose most important condition is the purchase, construction or other acquisition of noncurrent assets are recorded as a deduction from the acquisition or production cost of the asset. Other
government grants are recognised as income over the period necessary to match them with the related costs
which they are intended to compensate, on a systematic basis. Government grants received as compensation
for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group
with no future related costs are offset against the expenses incurred in the period in which the entitlement is
established.
3.21.
Income taxes
The income tax expense for the period comprises current and deferred taxes.
Current taxes
The current tax expense for each entity liable to tax is derived from its taxable income. The Group’s tax liability
is calculated on the basis of the applicable tax rates.
Deferred taxes
Deferred taxes are recognised for all temporary difference between the tax base of the assets and liabilities and
their carrying amounts in the consolidated financial statements (balance sheet-oriented liability method).
Deferred taxes are not recognised if the temporary differences arise from the initial recognition of goodwill or
(except in the case of business combinations) of other assets and liabilities resulting from transactions that do
not affect either taxable income or the net profit for the year.
Deferred tax assets and liabilities are generally recognised for all taxable temporary differences. When deferred
tax assets exceed deferred tax liabilities, they are only recognised to the extent to which taxable income will
probably be available against which the deductible temporary differences can be utilised, and where the
assumption can be made that they will reverse in the foreseeable future.
Deferred tax liabilities are recognised for taxable temporary differences arising from investments in subsidiaries
or associates as well as investments in joint ventures, unless the Group can control the timing of the reversal of
Page 24
the temporary differences and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred tax assets and liabilities are calculated on the basis of the tax rates (and the tax laws) expected to be
applicable at the date when the liability is settled or the asset is realised. The measurement of deferred tax
assets and liabilities reflects the tax consequences that would arise from the manner in which the Group
expects at the reporting date to settle the liability or to realise the asset. Deferred tax assets and liabilities are
offset if there is a legally enforceable right to set off current tax assets against current tax liabilities, and if they
relate to income taxes levied by the same tax authority and the Group intends to settle its current tax assets
and liabilities on a net basis.
Current and deferred taxes for the period
Current and deferred taxes are recorded as income or expenses unless they relate to items recognised directly
in equity. In this event, the tax is also recorded directly in equity. In addition, tax effects are not recognised in
the income statement if they result from the initial recognition of a business combination. In the case of a
business combination, the tax effect is reflected in the calculation of the goodwill or in the determination of the
excess of the acquirer’s share of the fair value of the identifiable assets, liabilities and contingent liabilities of
the business acquired over the cost of the business combination.
4.
Estimates and assumptions
In preparing the consolidated financial statements, estimates and assumptions are made to a certain extent
that affect the amount and reporting of the assets and liabilities recognised, the income and expenses and the
contingent liabilities for the reporting period. The premises underlying the estimates and assumptions are
based on the state of knowledge available at the time in the particular case. Due to the uncertainty associated
with these estimates and assumptions, however, outcomes may occur which result in future adjustments to the
carrying amounts of the assets and liabilities affected.
The material estimates listed below and the associated assumptions together with the uncertainties attaching to
the accounting policies adopted are central to an understanding of the risks underlying the financial reporting
and the effects that those estimates, assumptions and uncertainties may have on the financial statements. The
premises underlying the estimates and assumptions are based on the state of knowledge available at the time
in the particular case.
Estimates are especially necessary in the case of the assets and liabilities referred to below and the associated
income and expenses.
Business combinations
The measurement of items of property, plant and equipment and intangible assets acquired as part of a
business combination requires estimates to be made for determining their fair value at the date of acquisition.
The expected useful lives of the assets must also be estimated. The determination of the fair value of assets
and liabilities and of the useful lives of the assets is based on the management’s assessments.
Page 25
Impairment of goodwill
The Group tests goodwill for possible impairment at least once a year. The calculation of the recoverable
amount of a business area to which goodwill has been allocated requires estimates to be made by
management. The Group generally determines these amounts using valuation techniques based on discounted
cash flows. These cash flows are based on three-year forecasts derived from financial projections approved by
management. The forecasts take into account past experience and are based on management’s best estimate
of future developments. The most important assumptions underlying the determination of the discounted cash
flows comprise estimated growth rates, weighted interest rates and tax rates. These premises can have a
significant effect on the relevant amounts and therefore on the extent to which goodwill is impaired.
Impairment of property, plant and equipment and intangible assets
The identification of indications that an asset may be impaired, the estimation of future cash flows and the
determination of the fair values of assets or groups of assets require significant assessments by management
regarding the identification and review of signs of impairment, the expected cash flows, the appropriate
discount rates, the respective useful lives and any residual values.
Revenue recognition for construction contracts
Some companies, in particular EDAG GmbH & Co. KG, Fulda (EDAG), Rücker GmbH, Wiebaden (Rücker),
BFFT Gesellschaft für Fahrzeugtechnik mbH, Gaimersheim (BFFT), FFT GmbH & Co. KGaA, Fulda (FFT), J.S.
Redpath Holdings Inc., North Bay/Kanada (Redpath), and their subsidiaries, conduct the majority of their
business with customers in the form of construction contracts. Revenue in the plant construction project
business is generally recognised in accordance with the stage of completion of the project using the percentage
of completion method. The principal factors that have to be estimated for the purpose of determining the stage
of completion include the total contract revenue and costs, as well as the contract risks. The companies
constantly review all estimates made in connection with such construction contracts and adjust them where
necessary.
The Group recognises valuation allowances for doubtful receivables in order to reflect anticipated losses
resulting from customers’ inability to pay. Management assesses the appropriateness of valuation allowances
based on the maturity structure of the outstanding balances, the analysis of historical bad debts, the customer’s
creditworthiness, current economic developments and changes in the payment terms and conditions. In the
event that the customer’s liquidity position deteriorates, the extent of actual losses on receivables may exceed
the anticipated losses.
Pensions and other post-employment benefits
The obligation from defined benefit plans and other post-employment benefits is determined on the basis of
actuarial calculations. The actuarial measurement is based on assumptions with respect to discount rates,
future wage and salary increases, biometric parameters and future increases in pensions.
Page 26
The discount factors applied reflect the interest rates achieved at the reporting date for currency and term
congruent high-quality corporate bonds. As a result of the changing situation in the market and the economy
and the long-term orientation of these pension plans, the underlying premises may differ from the actual
development, which may significantly affect the obligations for pensions and other post-employment benefits.
For a sensitivity analysis showing how the defined benefit obligation would have been affected by changes in
the significant actuarial assumptions, reference is made to Note 29 Provisions for pensions.
Provisions
The determination of provisions for anticipated losses from onerous contracts, provisions for warranties and
provisions for litigation is dependent to a considerable extent on estimates of the likelihood of a future outflow of
resources, as well as on past experience and the circumstances known at the reporting date. Because of the
uncertainties associated with this assessment, actual losses may differ from the original estimates and
therefore from the amount of the provision.
A significant portion of the business of EDAG, Rücker, BFFT, FFT, J.S. Redpath and their subsidiaries is
conducted in the form of long-term contracts. The Group recognises a provision for anticipated losses from
onerous contracts if the current estimate of the total contract costs exceeds the expected revenue from the
relevant contract. These estimates are subject to revision in the light of new information as the project
progresses. The companies identify onerous contracts by constantly monitoring the progress of the project and
updating the calculation of total contract costs.
Leases
Assets and liabilities from finance leases are initially recognised at the lower of their fair value and the present
value of the minimum lease payments. The determination of the fair value generally requires estimates to be
made with respect to the cash flows from the use of the leased asset and with respect to the discount rate
applied. The fair value of the minimum lease payments is calculated using the lessor’s internal rate of return. If
the lessor’s internal rate of return is not available, it is derived from the interest rate at which the total lease
payments including any unguaranteed residual value must be discounted in order for the resulting present
value to be equal to the fair value of the leased asset at the inception of the lease. The estimate of the
unguaranteed residual value requires assumptions to be made which may differ from the actual residual value
on expiry of the lease.
Deferred tax assets
Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised. The tax
benefit from the utilisation of deferred tax assets depends on the ability to generate sufficient future taxable
income relating to the particular type of taxation and tax jurisdiction, taking into account any statutory
restrictions relating to minimum taxation or a maximum period for which tax losses may be carried forward. The
assessment of the probability that deferred tax assets will be utilisable in future is based on a number of
factors, such as past results of operations, operating business plans or tax planning strategies. If actual results
differ from these estimates or if adjustments to the estimates are necessary in future periods, this may have a
Page 27
negative impact on the results of operations, nets assets and financial position. If there is a change in the
assessment of the recoverability of deferred tax assets, the deferred tax assets are written down through profit
or loss or other comprehensive income – according to their original recognition – or, respectively, impaired
deferred tax assets are recognised through profit or loss or directly in equity.
5.
Changes in the consolidation group
5.1.
Acquisitions
Effective 18 January 2013, ATON GmbH acquired 100 % of the shares and voting rights of BFFT Gesellschaft
für Fahrzeugtechnik mbH, Gaimersheim, and of BFFT Engineering GmbH, Gaimersheim, through its subsidiary
BFFT Holding GmbH. As part of this acquisition, BFFT aeromotive GmbH, BFFT Hungary Kft. and BFFT of
Amercia were acquired as well. Effective 1 January 2013, BFFT Engineering GmbH was merged with BFFT
Gesellschaft für Fahrzeugtechnik mbH.
BFFT is a manufacturer independent engineering service provider for the automotive and aviation industry. It
has almost 650 employees at its sites in Gaimersheim and Berlin. The employees are mostly engineers.
BFFT’s most important customer is the Volkswagen Group. Its core activity regarding the automotive industry is
the development of system networks in electrics and electronics of automobiles. In this segment, BFFT covers
the development of non-individualised hardware components for automotive electronic systems, as well as the
developments and testing of alternative driving systems.
The primary reason for the business combination is the aim to expand the product and service portfolio of the
segment AT Tech in order to increase the segment’s revenue and earnings, to benefit from economies of scale
and to improve the future growth perspective through a stronger competitive position.
The purchase price for the shares amounted to EUR 49,806k. A goodwill of EUR 20,049k resulted from the
business combination. The factors making up the goodwill recognised were mainly the skilled workforce and
benefits from expected synergies with other companies. The transaction costs of the acquisition amounted to
EUR 476k and were recorded as other operating expenses.
The purchase price included the obligation to repay shareholder loans amounting to EUR 11.9 million payable
to the former shareholders. As of today, the payment has been settled.
Page 28
The following overview presents the assets and liabilities identified in respect of the purchase of the business
that were assumed at the date of the acquisition.
in EUR '000
IFRS carrying
amounts at date
of acquisition
Purchase price
allocation
Fair values at
date of
acquisition
Customer relationships
-
12,930
12,930
Order backlog
-
1,362
1,362
Technology
-
63
63
4,705
-
4,705
12,009
-
12,009
1,079
-
1,079
10,380
-
10,380
1,276
-
1,276
848
-
848
30,297
14,355
44,652
1,820
-
1,820
Payables for goods and services
2,168
-
2,168
Other current liabilities
5,446
-
5,446
481
4,916
5,397
9,915
4,916
14,831
Other non-current assets
Other current assets
Total assets
Total liabilities
For all current and non-current receivables the gross contractual amounts equal the net book values.
As a consequence of the business combination revenue of the Group increased by EUR 50,168k and profit for
the period increased by EUR 1,917k in the financial year 2013.
In January 2013, EDAG Engineering AG (formerly ATON Engineering AG) acquired 12,407 shares (0.148 %) in
Rücker AG for a purchase price of EUR 199k. In April and May 2013, another 7,740 shares (0.092 %) were
acquired for a purchase price of EUR 124k. As at 30 June 2013, the Group was holding 90.04 % of the share
capital of Rücker AG. At the date of the acquisition, the carrying amount of the non-controlling interest amounted to EUR 85k and EUR 54k respectively. The Group derecognised non-controlling interests of EUR 139k and
recorded a decrease in equity attributable to owners of the parent company of EUR 184k.
As at 28 June 2013, EDAG Engineering AG (formerly ATON Engineering AG) and Rücker AG signed a merger
agreement, pursuant to which net assets of Rücker AG, being the transferring company, are transferred by
means of merger and absorption according to Sec. 2 No. 1, 60 et seq. of the German Transformation Act (Umwandlungsgesetz) to the ATON Engineering AG, being the receiving company, and in connection with which
the non-controlling interests were squeezed out according to Sec. 327a (1) of the German Stock Corporation
Act (Aktiengesetz) in conjunction with Sec. 62 (1), (5) of the German Transformation Act.
Page 29
5.2.
Other transactions
On 28 August 2013, effective 1 January 2013, ATON Prisma GmbH, Hallbergmoos, was merged with its parent
company, ATON GmbH. The provision for a purchase price guarantee included in Prisma’s books, which resulted from the disposal of Prisma’s former subsidiary Lumera Laser GmbH in 2012, was released by an
amount of EUR 4,875k.
Since the beginning of the year, the joint venture RFK Blue Lake Tunnelers Partnership, Sparks/USA, has been
included in the consolidated financial statements. The interest held by J.S. Redpath Corporation is 65 %, the
interest held by the joint venture partner Frontier-Kemper Constructors, Inc. is 35 %.
In the first quarter of 2013, Thyssen Schachtbau GmbH and Deilmann-Haniel GmbH founded Deilmann
Thyssen Schachtbau Sp.z.o.o. in Poland as a joint venture with a share of 50 % of each partner in order to
improve the access to the Polish market with a local company.
Effective March 2013, the acquisition of the Swiss companies JetLink AG and HeliLink Helikopter AG, in which
DC Aviation GmbH’s share is 100 % each, was completed. For materiality reasons, the companies are not
included in the consolidated financial statements.
In the second quarter of 2013, W.O.M. World of Medicine GmbH founded W.O.M. World of Medicine Asia Ltd.
as a new company in Hong Kong/ China in order to strengthen its activities in Asia and to function as a local
service company. This company is fully consolidated in the consolidated financial statements.
In the second half of 2013, EDAG GmbH & Co. KGaA founded two companies in Mexico, EDAG México, S.A.
de C.V. and EDAG SERVICIOS México, S.A. de C.V., in order to strengthen its long-term relationship with an
important customer. Both companies are fully consolidated in the consolidated financial statements.
In July 2013, Hodgson Mining Limited, Zambia, began its operations. The company was founded with the
purpose of operating a mine in South Africa. Redpath Mining Zambia Ltd. holds an interest of 74% in the
company. This company is fully consolidated in the consolidated financial statements.
As at 4 October 2013, ATON Group Finance GmbH, Going/Austria, was founded as a 100 % subsidiary of
ATON GmbH and has been fully consolidated in the consolidated financial statements of the Group since then.
The share capital of the company amounts to EUR 100k. The main subject of the company’s activity is to
provide intra-group financing. In November 2013, ATON Group Finance GmbH issued a bond of EUR 200.0
million in the Prime Standard for corporate bonds at Deutsche Börse Frangfurt am Main (Frankfurt Stock
Exchange). ATON GmbH is the guarantor for this bond.
Page 30
6.
Revenue
The break down of reported revenue is as follows.
in EUR '000
Revenue from the sale of goods
Revenue from the rendering of services
Revenue from construction contracts
2013
304,768
357,651
1,196,064
995,490
799,923
869,580
3,186
4,725
2,303,941
2,227,446
Other operating revenue
Revenue
2012
The table below shows the revenue by geographical area.
in EUR '000
2013
2012
Germany
884,894
853,987
Europe (excluding Germany)
376,222
263,113
North America
454,917
521,049
South America
95,786
116,082
Australia
196,681
189,129
Asia
227,906
230,377
Africa
67,535
53,709
2,303,941
2,227,446
Revenue
Revenue was allocated to the business segments as follows.
in EUR '000
AT Tech
2013
2012
1,073,128
900,001
AT Mining Tech
810,804
870,031
AT Med Tech
256,145
258,025
AT Aviation
164,218
200,168
Holding/Consolidation
Revenue
- 354
- 779
2,303,941
2,227,446
Page 31
7.
Changes in inventories and own work capitalised break down as follows.
in EUR '000
Changes in inventories of goods and services
Own work capitalised
2013
2012
18,365
1,292
5,497
1,342
23,862
2,634
Changes in inventories reflect the increase or decrease in unfinished and finished goods and services
calculated on the basis of the acquisition cost method.
The increase in the changes in inventories compared to the previous year was mainly caused by multipleelement arrangements (tool and body systems) in the segment AT Tech.
Own work capitalised in the financial year mainly comprises own work in the segment AT Mining Tech in the
amount of EUR 4,161k (previous year: EUR 546k) as well as capitalised development costs of Ziehm Imaging
GmbH amounting to EUR 1,255k (previous year: EUR 120k).
Page 32
8.
The other operating income comprises the following.
in EUR '000
2013
2012
Operating income
Income from compensation and agreements for terminating contracts
21,460
551
Income from recycling/scrap disposal
7,418
3,055
Rental and lease income
6,170
2,031
Income from the reversal of specific valuation allowances
5,212
1,831
Benefits in kind from use of company vehicles
3,994
3,349
Income from reversal of provisions/derecognition of liabilities
3,316
977
Income from external services
1,796
1,486
Income from derecognised receivables
1,285
27
Income from cost reimbursements
1,000
2,037
Income from catering/canteen
718
715
Income from insurance compensation payments
411
184
Revenue and income subsidies
232
1,638
5,473
5,299
58,485
23,180
Miscellaneous operating income
Operating income
Non-operating income
Income from the reversal of provisions/derecognition of liabilities
19,477
12,346
Currency translation gains
5,104
6,373
Income from the disposal of property, plant and equipment
4,695
710
Income from hedging transactions
2,742
1,040
Development funds, subsidies and other grants
2,006
2,371
Income from other periods
1,587
1,416
Income from the disposal of current assets
90
-
-
18,320
297
2,224
Non-operating income
35,998
44,800
94,483
67,980
Income from the disposal of consolidated companies
Other non-operating income
Miscellaneous operating income and other non-operating income are made up of a large number of small
individual items.
Development funds, subsidies and other grants mainly consist of government grants in the form of training
subsidies and research and development grants, together with income in accordance with the German
Renewable Energy Act (Erneuerbare-Energien-Gesetz, "EEG").
Income from the disposal of consolidated companies in the previous year relates to Lumera Laser GmbH and
ED Work GmbH & Co. KG.
Page 33
9.
Cost of materials
The cost of materials break down as follows.
in EUR '000
2013
2012
Cost of raw materials, consumables and supplies and of purchased merchandise
475,435
529,829
Cost of purchased services
332,698
295,244
Cost of materials
808,133
825,073
The table below shows the cost of raw materials, consumables and supplies and of purchased merchandise
allocated to the business segments.
in EUR '000
2013
2012
AT Tech
221,563
259,845
AT Mining Tech
129,793
138,897
AT Med Tech
103,429
107,820
21,014
23,267
- 364
-
475,435
529,829
AT Aviation
Cost of materials
In the AT Tech, AT Aviation and AT Med Tech segments this item mainly relates to expenses for purchased
models and small parts, whereas for the AT Mining Tech segment the amount reported primarily consists of
deliveries of materials for the construction activities and plant construction.
The cost of purchased services can be allocated as follows.
in EUR '000
AT Tech
AT Mining Tech
AT Med Tech
AT Aviation
Cost of purchased services
2013
2012
176,394
134,642
77,782
73,402
8,469
5,577
70,264
81,623
- 211
-
332,698
295,244
The expenses for purchased services primarily consist of costs for subcontractors (AT Tech and AT Mining
Tech segments) as well as rental payments for aircrafts (AT Aviation segment).
Page 34
10.
Personnel expenses
The personnel expenses are attributable to the following items.
in EUR '000
Wages and salaries
Expenses for social security, retirement and other employee benefit expenses
Personnel expenses
2012
restated
2013
876,456
775,923
163,043
146,216
1,039,499
922,139
Due to the amendment of IAS 19 the figures of the previous year had to be restated in accordance with
IAS 8.19 (a) in conjunction with IAS 19R (see Note 2.3 Material changes in accordance with IAS 8). As a result
the personnel expenses increased by EUR 4,443k.
The expenses for retirement include the cost of defined benefit pension commitments, among other items. Due
to its financial character the net interest expense of the provisions for pensions is recorded in the financial
result. For the presentation of the pension commitments, please see Note 29 Provisions for pensions.
The average number of employees of the companies included in the consolidated financial statements during
the financial year, broken down by groups, was as follows in comparison with the previous year.
Number
Industrial workers
2013
2012
4,224
4,524
Salaried staff
12,398
10,273
Total employees excluding trainees
16,621
14,797
722
559
Trainees
Page 35
11.
The other operating expenses comprise the following.
in EUR '000
2013
2012
Operating expenses
Travelling expenses
56,287
32,818
Rental and lease payments
51,157
44,853
Maintenance
36,278
34,806
Selling and marketing costs
30,430
46,668
Administration costs
29,421
30,075
Legal and consulting costs, audit costs
24,880
20,658
Expenses from additions to provisions
13,581
10,838
Other incidental personnel expenses
11,839
11,862
Insurances
9,026
8,063
Education and training costs
7,868
7,477
Incidental rental costs and cleaning expenses
6,703
4,893
Other taxes and levies
5,108
3,106
Car expenses
2,747
2,587
Research and development costs
1,262
1,649
Expenses from additions to specific valuation allowances
435
8,748
Bad debt expenses
404
2,671
Impairment losses of assets classified as held for sale
-
1,456
15,148
6,003
302,574
279,231
Miscellaneous operating expenses
Operating expenses
in EUR '000
2013
2012
Non-operating expenses
Currency translation losses
9,440
8,536
Expenses from other periods
989
2,061
Expenses from the disposal of property, plant and equipment
889
773
Expense from hedging transactions
245
61
Expenses from the disposal of consolidated companies
Other non-operating expenses
Non-operating expenses
-
678
895
5,179
12,458
17,288
315,032
296,519
The impairment losses of the previous year of EUR 1,456k relate to losses on deconsolidation.
In the reporting year, expenses in the amount of EUR 20.2 million are included in the travelling expenses,
which were reported within the selling and marketing costs in the previous year (EUR 17.7 million).
As in the previous year the miscellaneous operating expenses comprise incidental cost of money transfer,
security service costs and a large number of small, non-material individual items.
Other non-operating expenses are made up of a large number of small, non-material individual items.
Page 36
12.
Result from associated companies
In the previous year the result from associated companies included the Group’s share of earnings of ELANAUSY GmbH amounting to EUR 51k and of DÜRR EDAG Aircraft Systems GmbH amounting to EUR 1k. No
associated companies existed during the financial year 2013. For further information please refer to Note 23
Investments in associates.
13.
Other investment result
In the previous year, the expenses from investments in the amount of EUR 1k resulted from the AT Tech
segment. In the current financial year, no such income or expenses ocurred.
14.
The net interest expense comprises the following.
in EUR '000
2013
2012 restated
Interest income
Interest income from credit institutions
915
Interest income from impaired receivables
667
-
Interest and similar income from related parties
321
578
1,608
1,868
3,511
3,443
Interest expenses to credit institutions and bondholders
7,232
5,471
Interest portion of finance lease agreements
3,232
4,512
Other interest income
997
Interest expenses
Net interest expense from defined benefit pension plans
Interest and similar expenses to related parties
Other interest expenses
521
186
1,596
5,307
4,462
4,993
17,043
20,469
- 13,532
- 17,026
Due to the amendment of IAS 19 the figures of the previous year had to be restated in accordance with
IAS 8.19 (a) in conjunction with IAS 19R (see Note 2.3 Material changes in accordance with IAS 8).
Page 37
15.
The other financial result comprises the following.
in EUR '000
2013
2012
Other financial income
Interest and dividend income from securities
200
206
Income from sale of securities
186
289
Gains from fair value remeasurement
167
429
Income from the reversal of specific valuation allowances
77
463
Miscellaneous financial income
27
206
657
1,593
Losses from fair value remeasurement
369
1,769
Specific valuation allowances on long-term loans to third parties
250
345
15
24
Other financial expenses
Write-downs of securities
Losses from sales of securities
Miscellaneous financial expenses
14
14
2,202
357
2,850
2,509
- 2,193
- 916
Miscellaneous financial expenses mainly comprise losses from cash flow hedges in the amount of EUR 2,191k.
16.
Income taxes
The income taxes reported include the actual taxes on income in the respective countries as well as deferred
taxes.
The income taxes for the financial years 2013 and 2012 break down as follows.
in EUR '000
2012
restated
2013
Income taxes
Income taxes for the current year
48,505
36,668
Income taxes for previous years
- 1,952
3,049
- 525
- 485
46,028
39,232
Income from the reversal of provisions for income taxes
Deferred taxes
Deferred taxes from temporary differences
1,799
926
Deferred taxes on losses carried forward
1,565
5,510
Income taxes
3,364
6,436
49,392
45,668
Unchanged from the previous year, current income taxes in Germany are based on a uniform corporate income
tax rate of 15 % plus a solidarity surcharge of 5.5 % of this amount. In addition to the corporate income tax,
Page 38
trade tax is levied on profits generated in Germany. Taking into consideration that trade tax cannot be deducted
as an operating expense, the average trade tax rate is 13.35 %, resulting in an average composite tax rate of
29.17 % for Germany. Due to a higher assessment rate at the domicile of the parent a higher composite tax
rate of 29.60 % results. In the previous year the composite tax rate of the parent amounted to 27.03 %. The
change resulted from the transfer of the company’s domicile from Hallbergmoos to Munich.
The profit generated by foreign subsidiaries is calculated based on the regulation of the national tax law and
using the tax rates applicable in the individual foreign countries. The tax rates applied by the foreign companies
vary between 24.50 % and 34.00 %.
The income taxes of the reporting period amounting to EUR 49,392k (previous year: EUR 45,668k) are
reconciled as follows from the expected income tax expense, that would have resulted if the parent’s statutory
income tax rate had been applied to the earnings before income taxes (EBT).
2012 restated
2013
EUR '000
Earnings before income taxes (EBT)
in %
161,212
Income tax rate of the parent
Expected income tax expense
Tax-free income and non-deductible expenses, incl. the effect of sections 8a and
8b of the KStG (corporate tax law)
EUR '000
in %
151,867
29.60%
47,726
27.03%
41,042
3,045
1.89%
1,853
1.22%
Income taxes for previous years
- 2,596
-1.61%
2,313
1.52%
Tax rate variances
- 3,162
-1.96%
1,271
0.84%
Amount of tax losses carried forward and
other deferred tax assets not recognised or
impaired
5,638
3.50%
4,590
3.02%
Effects from the recognition of previously
unused tax loss carryforwards
- 911
-0.57%
- 6,211
-4.09%
Non-deductible withholding taxes
1,442
0.89%
2,003
1.32%
Other tax effects
- 1,790
-1.11%
- 1,193
-0.79%
Income taxes reported in the consolidated income statement
49,392
Effective tax rate
45,668
30.63%
30.08%
Page 39
The current and deferred taxes in the consolidated statement of financial position changed as follows.
in EUR '000
2012
restated
2013
Current income taxes in the consolidated statement of financial position
Income tax assets
30,070
23,865
Income tax liabilities
- 5,080
- 6,112
- 21,839
- 9,283
3,151
8,470
Deferred taxes in the consolidated statement of financial position
Deferred tax assets
Income taxes in the consolidated statement of financial position
Page 40
13,916
17,377
- 44,761
- 42,589
- 30,845
- 25,212
- 27,694
- 16,742
The deferred tax assets and liabilities are attributable to the following items in the consolidated statement of
financial position.
in EUR '000
2012
restated
2013
Deferred tax assets
Intangible assets
Financial assets
2,980
2,077
997
461
-
943
Inventories
2,452
4,174
Receivables and other assets
1,898
969
1,636
1,844
Other provisions
7,488
7,943
Other liabilities
35,081
31,398
Losses carried forward
10,240
11,956
- 48,856
- 44,388
13,916
17,377
15,853
17,281
Intangible assets
17,909
16,595
15,576
14,995
Financial assets
1,222
1,149
Inventories
4,671
1,258
38,538
38,753
Netting
of which: non-current before netting
Receivables and other assets
Other provisions
Other liabilities
Netting
0
9,706
3,997
4,521
- 48,856
- 44,388
44,761
42,589
34,707
32,739
- 30,845
- 25,212
of which: non-current before netting
Deferred taxes, net
11,704
The deferred taxes changed as follows.
in EUR '000
Deferred taxes at the beginning of the financial year
2012
restated
2013
- 25,212
- 9,104
Changes in the scope of consolidation
- 4,851
- 10,725
Recognised in profit or loss
- 3,364
- 6,436
2,575
546
- 93
507
Recognised directly in equity
Reclassification IFRS 5
Deferred taxes at the end of the financial year
100
0
- 30,845
- 25,212
Page 41
The changes in the scope auf consolidation amounting to EUR 4,851k result from the first-time consolidation of
BFFT Gesellschaft für Fahrzeugtechnik mbH. In the previous year the changes in the scope of consolidation
amounting to EUR 10,725k resulted from the first-time consolidation of Rücker AG.
The reclassifications IFRS 5 of the financial year 2013 amounting to EUR 100k (previous year: EUR 0k) result
from Rücker Aerospace GmbH, which has been classified as asset held for sale.
Deferred taxes are measured on a regular basis. The ability to realise tax income from deferred taxes depends
on the ability to generate taxable income in the future and to use tax losses carried forward before they expire.
Deferred tax assets are recognised to the extent to which it is probable that taxable profit will be available
against which deductible temporary differences can be utilised and where the assumption can be made that
they will reverse in the foreseeable future.
Deferred tax assets and liabilities are offset, where a legally enforceable right to set off current tax assets
against current tax liabilities exists. In addition, tax assets and liabilities have to relate to the income taxes of
the same taxable entity and have to be levied by the same tax authority.
The domestic and foreign corporate income tax losses carried forward were as follows as at the reporting
dates.
in EUR '000
Losses carried forward (total)
2013
2012
128,823
131,813
1 year
12,537
15,776
2 to 5 years
18,550
24,104
over 5 years
31,353
21,080
carried forward indefinitely
66,383
70,853
Losses carried forward (not usable)
93,832
86,155
Losses carried forward expire within
Losses carried forward expire within
1 year
695
3,592
2 to 5 years
1,077
13,937
over 5 years
25,677
6,341
carried forward indefinitely
66,383
62,285
Expected use of usable tax losses carried forward
34,991
42,657
1 year
11,842
17,062
2 to 5 years
17,473
17,560
over 5 years
5,676
8,035
As at 31 December 2013, trade tax losses carried forward amounted to EUR 56,921k (previous year:
EUR 63,039k); deferred tax assets were not recognised on EUR 40,241k (previous year: EUR 38,649k) of this
amount.
Page 42
17.
Goodwill and other intangible assets
Goodwill and other intangible assets changed as follows during the financial year.
in EUR '000
Acquired
goodwill
Development
costs
Other
acquired
intangible
assets
Total other
intangible
assets
Advance
payments
Acquisition and production cost
195,206
8,705
140,600
563
149,868
0
-
14,997
-
14,997
Additions
20,049
1,959
10,783
276
13,018
Disposals
-
- 112
- 4,523
-
- 4,635
Reclassifications
-
-
2,530
- 282
2,248
As at 31 December 2012
-
-
- 105
-
- 105
- 6,170
- 45
- 1,982
-
- 2,027
209,085
10,507
162,300
557
173,364
7,006
3,772
83,542
0
87,314
-
-
226
-
226
Depreciation, amortisation and impairment 2013
3
1,318
17,248
-
18,566
0
1,318
16,850
-
18,168
Impairment losses
3
-
398
-
398
Disposals
-
- 108
- 3,863
-
- 3,971
Reclassifications
-
-
0
-
0
Reclassifications under IFRS 5
-
-
- 46
-
- 46
Reclassification under IFRS 5
Accumulated depreciation,
amortisation and impairment losses
-
- 33
- 1,152
-
- 1,185
7,009
4,949
95,955
0
100,904
188,200
4,933
57,058
563
62,554
202,076
5,558
66,345
557
72,460
Carrying amounts
Page 43
Goodwill and other intangible assets changed as follows during the previous year.
in EUR '000
Acquired
goodwill
Development
costs
Other
acquired
intangible
assets
Total other
intangible
assets
Advance
payments
161,229
7,233
104,828
412
112,473
- 12,299
- 678
32,175
15
31,512
Additions
46,267
1,000
6,209
313
7,522
Disposals
-
- 26
- 3,159
-
- 3,185
Reclassifications
-
1,203
724
- 15
1,912
Reclassification under IFRS 5
-
-
189
- 162
27
9
- 27
- 366
0
- 393
195,206
8,705
140,600
563
149,868
690
2,458
74,218
0
76,676
0
- 284
- 3,267
-
- 3,551
6,316
1,618
15,836
-
17,454
-
1,075
10,567
-
11,642
Accumulated depreciation,
amortisation and impairment losses
6,316
543
5,269
-
5,812
Disposals
-
-
- 3,089
-
- 3,089
Reclassifications
-
-
-
-
-
-
-
8
-
8
Impairment losses
-
- 20
- 164
-
- 184
7,006
3,772
83,542
0
87,314
160,539
4,775
30,610
412
35,797
188,200
4,933
57,058
563
62,554
Carrying amounts
The additions to other acquired intangible assets in the financial year 2013 primarily relate to industrial property
rights of the AT Tech segment. The changes in the scope of consolidation mainly relate to additions resulting
from the purchase price allocation of BFFT Fahrzeugtechnik mbH (customer relationships, order backlog).
The capitalised development costs relate to various smaller amounts for intangible assets created internally by
the affiliated companies. In addition to the capitalised development costs, research and development costs of
EUR 1,262k (previous year: EUR 1,649k) were recognised as expenses.
No borrowing costs were capitalised in the financial year. The purchase commitments for intangible assets
amounted to EUR 174k as at 31 December 2013 (previous year: EUR 0k).
The impairment losses of EUR 398k recognised in the financial year relate to software of the AT Aviation and
AT Tech segments.
As in the previous year, intangible assets are not subject to any restrictions on title. The intangible assets do
not include any assets acquired under finance leases. No government grants were deducted from acquisition
and production cost either in the reporting period or in the previous year.
Page 44
The carrying amounts of the goodwill attributable to the acquired companies have been allocated to the
following cash-generating units.
in EUR '000
2012
2013
Rücker
45,682
BFFT
20,049
-
709
771
EDAG
FFT
45,682
7,786
7,786
Goodwill AT Tech
74,226
54,239
Goodwill AT Mining
51,906
58,012
Ziehm / OrthoScan
45,382
45,382
W.O.M.
15,921
15,921
Haema
14,641
14,641
Goodwill AT Med Tech
75,944
75,944
-
5
202,076
188,200
Goodwill AT Aviation
As at 31 December
As a result of the acquisition of BFFT Gesellschaft für Fahrzeugtechnik mbH, goodwill increased by
EUR 20,049k in the financial year 2013.
The change in DHI’s goodwill only results from currency translation because the closing rate of the EUR versus
the CAD strongly decreased compared to the previous year.
The Group tests its goodwill for impairment at least once a year. As at 31 December 2013, all goodwill items
were subject to an impairment test conducted as presented in Note 3.4 Impairment of property, plant and
equipment and other intangible assets, by comparing the carrying amounts with the value in use. The value in
use is determined using the discounted cash flow method. For the financial year 2013 no impairment has been
noted.
The determination of the recoverable amounts was based on the following basic assumptions.
2013
Planning period
2012
3 years
3 years
Growth rate
1.00%
1.00%
Expected market return
8.64%
4,50% to 8,25%
Return for risk-free investments
2.14%
3.14%
5,47% to 11,59%
6,62% to 10,81%
Pre-tax discount rate
Page 45
18.
Property, plant and equipment and investment properties
Property, plant and equipment and investment properties changed as follows in the financial year.
Land, land
rights and
buildings,
including
buildings on
thirdparty land
Technical
equipment
and
machinery
Other equipment,
operating and
office equipment
Advance
payments
and construction in
progress
Total property,
plant and
equipment
Investment
properties
121,062
271,833
105,042
18,345
516,282
3,808
-
2,551
4,215
-
6,766
-
Additions
2,425
47,313
16,097
29,147
94,982
-
Disposals
- 215
- 21,991
- 12,067
- 1,524
- 35,797
-
Reclassifications
1,276
20,187
- 8,695
- 16,045
- 3,277
-
-
- 55,638
- 344
- 423
- 56,405
-
- 1,962
- 29,893
- 1,098
- 1,088
- 34,041
-
122,586
234,362
103,150
28,412
488,510
3,808
24,514
86,938
56,117
74
167,643
703
-
581
2,098
-
2,679
-
4,572
45,437
14,052
- 46
64,015
101
4,572
40,191
13,969
- 46
58,686
101
-
5,246
83
-
5,329
-
Disposals
- 117
- 16,759
- 10,199
12
- 27,063
-
Reclassifications
- 433
3,587
- 4,139
0
- 985
-
-
- 25,401
- 94
-
- 25,495
-
- 810
- 12,470
- 823
0
- 14,103
-
27,726
81,913
57,012
40
166,691
804
96,548
184,895
48,925
18,271
348,639
3,105
94,860
152,449
46,138
28,372
321,819
3,004
in EUR '000
As at 1 January 2013
Accumulated depreciation, amortisation and
impairment losses
Impairment losses
Carrying amounts
Page 46
In the previous year, property, plant and equipment and investment properties changed as follows.
in EUR '000
Land, land
rights and
buildings,
including
buildings on
thirdparty land
Technical
equipment
and
machinery
Other equipment,
operating and
office equipment
Advance
payments
and construction in
progress
Total property,
plant and
equipment
Investment
properties
89,061
283,284
81,278
20,535
474,158
3,808
Changes in the scope consolidation
12,858
1,095
7,707
2,556
24,216
-
Additions
21,149
49,797
18,050
31,665
120,661
-
Disposals
- 5,722
- 54,101
- 5,197
- 20,899
- 85,919
-
976
9,587
3,118
- 15,595
- 1,914
-
2,993
- 17,947
341
- 37
- 14,650
-
- 253
118
- 255
120
- 270
-
121,062
271,833
105,042
18,345
516,282
3,808
20,248
103,297
48,912
68
172,525
602
- 44
- 926
- 1,591
-
- 2,561
-
3,085
45,115
12,494
6
60,700
101
3,099
37,343
12,284
1
52,727
101
- 14
7,772
210
5
7,973
-
- 314
- 51,433
- 4,163
-
- 55,910
-
0
- 436
437
-
1
-
1,606
- 9,082
227
-
- 7,249
-
- 67
403
- 199
0
137
-
24,514
86,938
56,117
74
167,643
703
68,813
179,987
32,366
20,467
301,633
3,206
96,548
184,895
48,925
18,271
348,639
3,105
Reclassifications
Accumulated depreciation, amortisation and
impairment losses
Changes in the scope consolidation
Impairment losses
Disposals
Reclassifications
Carrying amounts
The additions to and disposals of technical equipment and machinery primarily relate to technical equipment for
major projects in the DHI subgroup. Reclassifications in accordance with IFRS 5 related to several aircrafts and
one jet engine of the AT Aviation segment. See Note 27 Assets of disposal group classified as held for sale.
The impairment losses of the financial year mainly relate to property, plant and equipment of the AT Aviation
segment.
Property, plant and equipment of EUR 14,792k (previous year: EUR 30,531k) was used as collateral for
liabilities. Property, plant and equipment is subject to restrictions on title in the amount of EUR 13,635k
(previous year: EUR 0k) which mainly result from the subgroup of Deilmann-Haniel International Mining &
Tunneling GmbH. Property, plant and equipment includes assets in the amount of EUR 47,572k (previous year:
EUR 63,503k) acquired under finance leases. Government grants amounting to EUR 10,961k (previous year:
EUR 5,932k) were deducted from the acquisition cost of property, plant and equipment in the reporting period.
They were granted for land and buildings, technical equipment and machinery as well as operating and office
equipment. The investment grants are subject to an earmarking period and a job guarantee. At EUR 9,950k
(previous year: EUR 5,091k), the main grants received in the financial year were attributable to investment
grants for the Leipzig-based company Haema AG. Repayments of government grants amounted to EUR 90k in
Page 47
the financial year (previous year: EUR 24k). The purchase commitments for property, plant and equipment
amounted to EUR 2,487k as at 31 December 2013 (previous year: EUR 13,150k).
The fair values of the investment properties held by the Group amounted to EUR 4,823k as at 31 December
2013 (previous year: EUR 5,192k). The fair values were calculated by the Group using an income capitalisation
approach, which takes into account future rental income. The applied cost of capital of 11.52 % (previous year:
10.45 %) is made up of the WACC of 10.12 % (previous year: 8.95 %) and an inflation rate of 1.4 % (previous
year: 1.5 %). Rental income amounted to EUR 645k (previous year: EUR 628k) in the financial year, while
directly attributable operating expenses amounted to EUR 84k (previous year: EUR 80k). The properties were
not valued by an independent expert.
19.
The Group as lessee
The carrying amounts of property, plant and equipment accounted for under finance leases other than saleand-lease-back arrangements, were as follows as at 31 December 2013 and 31 December 2012.
in EUR '000
Land and buildings
Technical equipment and machinery
Other equipment, operating and office equipment
Net carrying amounts of capitalised leased assets
2013
2012
5,476
5,667
41,433
44,297
663
941
47,572
50,905
In the previous year the carrying amount of property, plant and equipment accounted for under sale-and-leaseback arrangements amounted to EUR 15,130k and related only to aircrafts. As at 31 December 2013, no saleand-lease-back arrangements exist.
The payment obligations as at the reporting date resulting from finance leases and sale-and-lease-back
arrangements are recognised as a liability at the present value of the future minimum lease payments. In
subsequent years, the lease installments payable to the respective lessor will reduce the liability by the
repayment portion of these installments. The interest portion of the payments is recognised through profit or
loss in the income statement.
The main lessee of land and buildings is FFT, which leases a complex of buildings. In the previous year, all
aircrafts were capitalised as leased assets by Augsburg Airways. All technical equipment and machinery, which
amount to EUR 41,433k, are recognised by Redpath. The lease terms vary between three and four years.
Page 48
As at the reporting date, future obligations arising from finance leases other than sale-and-lease-back
arrangements were as follows.
2013
in EUR '000
Minimum
lease
payments
2012
Interest
portion
included
Interest
portion
included
Minimum
lease
payments
Present
values
Present
values
Maturity
Up to 1 year
13,849
951
12,898
93,950
14,076
79,874
1 to 5 years
19,127
1,865
17,262
130,641
17,389
113,252
7,058
1,774
5,284
16,040
4,236
11,804
40,034
4,590
35,444
240,631
35,701
204,930
Over 5 years
Total
As at the reporting date, there are no future obligations arising from sale-and-lease-back arrangements. In the
previous year, the future obligations were as follows.
2013
in EUR '000
Minimum
lease
payments
2012
Interest
portion
included
Interest
portion
included
Minimum
lease
payments
Present
values
Present
values
Maturity
Up to 1 year
-
-
-
10,451
869
9,582
1 to 5 years
-
-
-
-
-
-
Over 5 years
-
-
-
-
-
-
Total
-
-
-
10,451
869
9,582
The expenses recognised and the future minimum lease payments under operating leases are as follows.
in EUR '000
Lease payments recognised as an expense
2013
2012
51,157
40,688
Up to 1 year
30,627
44,927
1 to 5 years
44,920
42,269
Over 5 years
10,561
6,874
Total
86,108
94,070
Future lease payments (maturity)
Most of the obligations from non-cancellable operating leases arise from commercial real estate contracts,
vehicles and technical equipment.
As in the previous year, no contingent lease payments were recognised as expenses in the financial year, and
there are no subleases.
Page 49
20.
The Group as lessor
The Group acts as lessor in operating leases, most of which relate to building premises. The contracts normally
have short terms without renewal options. Operating lease income recognised in profit or loss amounted to
EUR 5,510k in the financial year (previous year: EUR 2,892k). The future minimum lease payments under noncancellable operating leases mature as follows: up to one year EUR 2,722k (previous year: EUR 3,559k), one
to five years EUR 1,879k (previous year: EUR 1,955k) and over five years EUR 87k (previous year: EUR 221k).
Contingent rental income of EUR 17k (previous year: EUR 14k) was recognised in the income statement.
21.
Investments in joint ventures
The Group has investments in joint ventures. The table below shows the proportionately consolidated interests
in the assets, liabilities, income and expenses of the joint ventures as at 31 December 2013 and as at
31 December 2012. There are only small amounts of non-current liabilities.
The following joint venture relationships existed as at 31 December 2013.
in EUR '000
Assets
Liabilities
Interest
held
current
non-current
current
non-current
Total
Income
Expenses
Profit
after
taxes
Number of
employees
Deilmann Thyssen Schachtbau Sp.
z.o.o.
50.0%
6
-
9
-
-3
-
- 51
- 51
2
RFK Blue Lake Tunnelers Partnership
65.0%
671
-
326
-
345
6,866
- 4,744
2,122
35
Associated Mining Construction
Inc., Saskatchewan, Canada
50.0%
11,705
874
4,900
1,358
6,321
54,522
- 51,988
2,534
336
The joint venture relationships were as follows as at 31 December 2012.
in EUR '000
Assets
Interest
held
Associated Mining Construction
Inc., Saskatchewan,
Canada
Page 50
50.0%
current
12,696
Liabilities
non-current
current
non-current
Total
Income
Expenses
Profit
after
taxes
Number of
employees
1,203
4,955
2,837
6,107
46,936
- 43,997
-
255
22.
Other financial assets break down as follows.
in EUR '000
2013
2012
Remaining maturity
> 1 year
< 1 year
Remaining maturity
Total
> 1 year
< 1 year
Total
Non-consolidated investments
in affiliated companies
3,570
-
3,570
1,798
-
1,798
Non-consolidated investments
in associated companies
359
-
359
29
-
29
Loans
1,192
6,039
7,231
956
5,457
6,413
Securities held to maturity
1,039
-
1,039
1,344
-
1,344
Securities available for sale
9,856
505
10,361
7,509
68
7,577
Securities held for trading
-
146
146
-
146
146
Fair values of derivative financial instruments
278
910
1,188
212
8
220
Fair values of derivative financial instruments hedging
162
17
179
1,229
2,668
3,897
16,456
7,617
24,073
13,077
8,347
21,424
The non-consolidated investments in affiliated companies were recognised at acquisition cost because the
future cash flows cannot be estimated reliably and the fair value can therefore not be determined reliably. The
same applies to the securities held for trading. The Group does not plan to sell significant parts of the securities
available for sale, which are measured at acquisition cost, in the near future.
The net loans of EUR 7,231k (previous year: EUR 6,413k) were not overdue as at the reporting date and are
being repaid as planned. Specific allowances of EUR 250k were recognised for non-current loans.
Bonds held to maturity amounting to EUR 1,039k are reported under securities. In addition, securities
amounting to EUR 10,361k are available for sale.
Cash flow hedges are used to hedge foreign currency risks from future procurement transactions. The hedging
instruments used are foreign exchange options. Changes in the fair value of the hedging instruments relating to
the effective portion are recognised in other comprehensive income until the hedged item is realised. The
ineffective portion of the changes in the fair value is recognised in the income statement.
On realisation of the hedged item, the parked fair value changes of the hedging transaction are reclassified
from total other comprehensive income to the income statement. The recognised fair value of hedging
instruments used as cash flow hedges amounted to EUR 179k as at the reporting date (previous year:
EUR 3,897k). The procurement transactions hedged with cash flow hedges are expected to mature and be
recognised in profit or loss in the next three years. In the previous year, changes in the fair values of hedging
instruments with the effective portion of the hedge in the amount of EUR 2,191k before income taxes were
recognised in other comprehensive income. These cashflow hedges were completely reclassified to profit or
loss in the reporting period because they became ineffective.
Page 51
23.
Investments in associates
Material associates are included in the consolidated financial statements using the equity method on the basis
of the latest available financial statements. The financial statements of the associates were prepared as at
31 December 2013 in accordance with the provisions of the IFRSs, as adopted by the EU. Immaterial
investments in associates are reported at acquisition cost as an alternative permitted by IAS 39.
In the financial year 2013, no investments in associates were recognized. The carrying amount of the
investments in associates in the previous year changed as follows.
in EUR '000
2013
2012
As at 1 January
-
6,295
-
-
Addition from purchase or reclassification under IAS 39
-
-
Share in profit or loss
-
52
Share in other operating income
-
-
Disposal through sale
-
- 26
Reclassification to assets held for
sale under IFRS 5
-
- 6,321
Reclassification under IAS 39
-
-
As at 31 December
-
-
In the previous year, 49% of the shares in ELAN-AUSY GmbH were reclassified to held for sale in accordance
with IFRS 5 at a fair value of EUR 6,321k. In addition, this item included an amount of EUR 26k for the shares
in Dürr Aircraft Systems GmbH, which were sold as at 31 December 2012.
Rücker CT Engineering GmbH is reported at cost for reasons of materiality. The other associates were fully
written down in previous years.
Page 52
The aggregated proportionate key data of the investments in associates in the previous year was as follows.
in EUR '000
2013
2012
Assets
Current
-
8,355
Non-current
-
192
-
8,547
Current
-
7,726
Non-current
-
250
-
7,976
Proportionate net assets
-
571
Revenue
-
15,700
Profit or loss
-
51
Carrying amount of investments accounted for under the equity method
-
-
Liabilities
24.
in EUR '000
31.12.2013
current
31.12.2012 restated
non-current
current
non-current
Trade receivables
251,862
70
214,844
241
Receivables from construction contracts
221,800
-
249,910
-
Other receivables
Carrying amount (net)
58,350
936
52,809
1,106
532,012
1,006
517,563
1,347
The prior-year figures were restated because of IAS 19 revised (see Note 2.3 Material changes in accordance
with IAS 8).
Receivables from construction contracts break down as follows.
in EUR '000
Accumulated direct costs
31.12.2013
31.12.2012
1,789,745
2,318,404
+ accumulated allocated gains
243,294
319,172
- accumulated allocated losses
30,639
66,885
+ accumulated currency translation differences
Accumulated contract revenue
- advance payments received
- amounts invoiced
- 25,604
- 14,368
1,976,796
2,556,323
379,250
396,467
1,328,453
1,923,001
+ accumulated currency translations differences
- 47,293
13,055
Amount recognised in the statement of financial position
221,800
249,910
Page 53
The allowances for trade receivables changed as follows.
in EUR '000
2013
As at 1 January
2012
12,342
8,381
- 922
- 379
-
865
Additions
287
7,600
Utilisation
- 2,701
- 2,339
Reclassifications
Reversals
As at 31 December
-
11
- 5,110
- 1,797
3,896
12,342
For trade receivables not impaired an amount of EUR 68,176k (previous year: EUR 73,750k) was overdue as
at the reporting date.
in EUR '000
Trade receivables, net
of which neither impaired nor overdue
2013
2012
251,932
215,085
201,356
141,334
of which overdue in the following time bands, but not impaired
up to 30 days
45,302
46,779
between 30 and 60 days
7,301
13,720
4,415
5,272
3,014
3,832
2,434
2,782
over 360 days
5,710
1,365
Because of established receivables management processes in the respective subsidiaries and the case-bycase assessment of individual customer risks, the receivables that are neither impaired nor overdue are
expected to be fully recoverable. The allowances recognised adequately reflect the future risk of default of the
existing receivables.
Page 54
Other receivables break down as follows.
in EUR '000
2012
restated
2013
Current
Value added tax receivables
9,133
11,489
Receivables from employees
946
1,130
1,050
988
Other tax receivables
Creditors with debit balances
419
186
Other receivables
48,371
40,640
Allowances
- 1,569
- 1,624
58,350
52,809
Non-current
Other receivables
1,936
2,106
Allowances
- 1,000
- 1,000
936
1,106
Other receivables
59,286
53,915
Other receivables mainly consist of current receivables from related parties of EUR 2,900k (previous year:
EUR 8,217k), current prepaid expenses of EUR 8,741k (previous year: EUR 10,146k), a purchase price
receivable of EUR 576k (previous year: EUR 3,900k) from the sale of an equity investment, agreements for
terminating contracts of EUR 18,800k (previous year: EUR 0k) of the AT Aviation segment and a large number
of miscellaneous individual items totalling EUR 13,438k (previous year: EUR 12,879k). At the reporting date no
receivables from non-recourse factoring to a factor exist (previous year: EUR 5,504k).
The allowances for other receivables changed as follows.
in EUR '000
Allowances as at 1 January
Additions
2013
2012
2,624
1,374
-6
-
-
136
148
1,148
Utilisation
- 95
-
Reversals
- 102
- 34
Allowances as at 31 December
2,569
2,624
Page 55
For other receivables not impaired an amount of EUR 2,280k (previous year: EUR 926k) was overdue as at the
reporting date.
in EUR '000
2012
restated
2013
Other receivables, net*
of which neither impaired nor overdue
59,286
53,915
57,006
52,989
of which overdue in the following time bands, but not impaired
up to 30 days
1,706
83
114
200
91
180
2
65
283
195
84
203
over 360 days
* excluding prepaid expenses
Receivables not impaired are subject to individual risk assessments in the respective subsidiaries. These
assessments have not provided any further indication that the receivables carry any risks exceeding the
allowances recognised as at the reporting date.
25.
Inventories
The carrying amount of the inventories of EUR 137,138k (previous year: EUR 125,534k), breaks down as
follows.
in EUR '000
31.12.2013
31.12.2012
Raw materials, consumables and supplies
42,950
40,984
Unfinished goods, work in progress
30,769
13,978
Finished goods
15,674
14,100
Merchandises
12,447
11,147
Advance payments
Total
35,298
45,325
137,138
125,534
Inventories are written down to the lower net realisable value. The carrying amount of the inventories
measured at the net realisable value amounted to EUR 4,355k (previous year: EUR 718k). Total write-downs
amounted to EUR 10,850k (previous year: EUR 16,123k). As in the previous year, the impairment losses were
fully recognised in cost of materials.
Inventories amounting to EUR 9,521k (previous year: EUR 11,628k) were pledged as collateral for liabilities. In
the financial year 2013, they relate to inventories assigned to secure credit facilities of Ziehm Imaging GmbH in
the amount of EUR 9,521k (previous year: EUR 9,462k). In addition, in the previous year, EUR 2,166k related
to an overall first-ranking security of DHI. In addition, inventories are subject to the usual retention of title by
suppliers.
Page 56
26.
in EUR '000
2013
Cash and bank balances
Other cash equivalents
Cash in transit
Total
2012
324,641
157,719
21
6,087
356
261
325,018
164,067
For details of changes in cash and cash equivalents, please refer to the consolidated statement of cash flows.
As at 31 December 2013, the Group was unable to dispose freely over a portion amounting to EUR 377k
(previous year: EUR 5,221k).
27.
Assets of disposal group classified as held for sale
The following positions have been classified as assets held for sale in accordance with IFRS 5 regarding the
AT Tech segment.
In 2013, the management of Rücker AG decided to classify the subsidiary Rücker Aerospace GmbH and the
companies Silver AeroSpace, Rücker France SARL and Rücker SIER as an asset held for sale in accordance
with IFRS 5. The sale already took place in March 2014 and will have a minor positive impact on the profit or
loss for the period.
In 2012, the 49.0 % interest in ELAN-AUSY GmbH was disclosed as an asset held for sale in accordance with
IFRS 5. ELAN-AUSY GmbH was accounted for using the equity method and the carrying amount of
EUR 6,321k as at 31 December 2012 was equal to the fair value of the investment. The shares in ELAN-AUSY
GmbH were sold at their fair value in the current financial year, so that no impact resulted on profit or loss.
The following positions have been classified as assets held for sale in accordance with IFRS 5 in the AT
Aviation segment.
In 2013 Augsburg Airways Flugzeugsbeteiligung Nr. 1 GmbH & Co KG classified an aircraft as an asset held
for sale in accordance with IFRS 5, which shall be sold in the second half of the year 2014. The classification
did not result in an impairment of the asset.
Furthermore Augsburg Airways GmbH has classified three aircrafts and a jet engine as a assets held for sale in
accordance with IFRS 5 as at 31 December 2013. The classification under IFRS 5 resulted in an impairment of
the assets to the selling price causing an impact on profit or loss of EUR 5,224k. The aircrafts were already
sold in the first months of the financial year 2014. The sale of the jet engine is scheduled for May 2014.
In 2012 Augsburg Airways GmbH classified two aircrafts as assets held for sale in accordance with IFRS 5.
The sale of the aircrafts was already completed in March 2013. The selling price corresponded to the fair value.
Page 57
28.
Equity
Details of the changes in equity between 1 January and 31 December 2013 are presented in the Group’s
statement of changes in equity.
Subscribed capital
The subscribed capital of EUR 15,000k (previous year: EUR 15,000k) corresponds to the equity item reported
by the parent (ATON GmbH).
As at 31 December 2013, the share capital of EUR 15,000k was fully paid up. It is attributable to the
shareholders as follows.
in EUR '000
31.12.2013
%
Dr. med. Lutz Helmig
9,000
60%
Ms. Dagmar Helmig
1,500
10%
Ms. Alexandra Helmig
2,250
15%
Ms. Charlotte Helmig
Share capital
2,250
15%
15,000
100%
Capital reserve
An amount of EUR 24,866k (previous year: EUR 72,574k) of the capital reserve of ATON GmbH as at
31 December 2012 was reversed in 2013.
Other reserves
The other reserves caption is used to report the profit or loss of the previous year attributable to shareholders
(profit or loss carried forward), the current net profit or loss attributable to shareholders, reserves from the
transition from HGB (German GAAP) to IFRS accounting and total other comprehensive income.
Page 58
In 2013, EUR 24,866k was reversed from the capital reserve of ATON GmbH and used in an amount of
EUR 11,284k to offset the accounting loss carried from 2012. In addition, EUR 13,582k (previous year:
EUR 11,325k) of the reversed amount was distributed to the owners.
in EUR '000
31.12.2012 restated
31.12.2013
Loss carried forward
- 55,509
- 157,721
Profit attributable to the owners
110,435
107,900
- 3,663
- 4,777
- 14,770
12,841
- 4,459
- 4,522
527
2,299
32,561
- 43,980
Reserve from the transition to IFRSs
Other comprehensive income
Fair value valuation securities and cash flow hedges
Other reserves
Other comprehensive income is used to report currency translation differences, remeasurements of defined
benefit plans as well as changes in the fair values of financial assets available for sale and of cash flow hedges.
The currency translation differences include the differences from translating the currencies of financial
statements of foreign subsidiaries, which are recognised directly in equity.
The non-controlling interests are attributable to the following companies.
in EUR '000
31.12.2013
31.12.2012
TSO
2,556
FFT
666
917
Rücker
253
6,053
ZIEHM
-
7
Berufsbildungszentrum Fulda
-
- 214
- 1,851
- 2,734
1,624
6,941
DHI
2,912
Page 59
The changes in non-controlling interests in equity are shown in the table below.
in EUR '000
2013
As at 1 January
2012
6,941
12,718
457
174
- 5,332
24,625
Dividend payments
- 1,295
0
Currency translation differences from translation of
financial statements of foreign subsidiaries
Other changes in equity
- 532
- 28,875
- 6,702
- 4,076
Changes in equity recognised in profit or loss
1,385
- 1,701
As at 31 December
1,624
6,941
Changes in equity recognised directly in equity
The other changes in equity within non-controlling interests of the financial year include the derecognition of
non-controlling interests because EDAG Engineering AG (formerly ATON Engineering AG) acquired additional
shares in Rücker AG. In the previous year, this item included the derecognition of non-controlling interests as a
result of the acquisition of shares in W.O.M. AG as well as the acquisition of treasury shares by W.O.M. AG
29.
The Group has occupational pension systems in the form of defined contribution plans and defined benefit
plans.
Defined contribution plans take the form of old-age, disability and survivor’s benefits. The employer
contributions to the statutory pension insurance scheme payable in Germany should be treated as defined
contribution plans of this type. The payments to defined contribution pension plans in the Group primarily relate
to contributions to the statutory pension insurance schemes in Germany and Austria. In 2013, the expenses
incurred in connection with defined contribution pension plans amounted to EUR 42,968k (previous year:
EUR 37,094k). The increase compared to the previous year (EUR 5,874k) mainly results from the fact that, in
the financial year 2012, the Rücker group was only included in the fourth quarter whereas in the current
financial year, it was included in all four quarters. The Group has no further payment obligations once the
contributions have been paid.
The defined benefit obligations relate to direct pension commitments and indirect pension commitments
through VKE Versorgungkasse EDAG-Firmengruppe e.V. (VKE). The exclusive and unalterable purpose of
VKE is to manage a special pension fund, which grants voluntary, one-time, repeated or recurring benefits to
beneficiaries according to the benefit plan of VKE when they need support, become disabled or incapable to
work and in old age. The funding companies (members of VKE) are as follows: EDAG GmbH & Co. KGaA
(Fulda), EDAG Production Solutions GmbH & Co. KG (Fulda) and FFT GmbH & Co. KG (Fulda). For
employees recruited from 1 June 2006 onwards, the EDAG Group has not made any pension commitments.
The employees receive old-age, disability and survivor’s benefits in accordance with the pension regulations
applicable at the time. The benefit due in each case is paid as a lump sum.
Page 60
The direct pension commitments obligate the employer to life-long pension payments. The obligations partly
take the form of fixed commitments and partly of commitments, which depend on years of service and salary.
Commitments are made for old-age, disability and survivor’s benefits.
In Germany, the provisions of the German Company Pensions Act apply to the pension commitments. Due to
the legally prescribed pension adjustment the pension obligations are subject to inflation risk. Furthermore
there is a risk that the actual payment obligations differ from the obligations expected at the time of the
commitment, which is caused by changes in lifetime, disablement probabilities, and mortality rates.
In Switzerland, the Group is associated to the AXA foundation for occupational benefits. The collective
foundation jointly invests the capital of all members. The collective foundation can change its funding system at
any time. In the event of underfunding, provided that other measures do not lead to the desired results, the
collective foundation can collect restructuring contributions from the employer and the employees.
The pension obligations are determined on the basis of actuarial reports, which are requested annually. The
benefit amount is determined on the basis of the years of service and the estimated future salary and pension
trends.
The disclosures of the previous year were restated in accordance with IAS 19.173 in conjunction with IAS 8.19
(a). For detailed information on the impact of the changes in accounting policies on the opening statement of
financial position as at 1 January 2013 and on the disclosures of the previous year, please refer to Note 2.2
Application of new, amended and revised standards.
The pension provision recognised in the statement of financial position is as follows.
in EUR '000
2012
restated
2013
Present value of funded obligations
32,152
29,494
Fair value of plan assets
27,855
26,516
Deficit of funded plans
4,297
2,978
Present value of unfunded obligations
14,716
14,675
Total deficit of defined benefit pension plans
19,013
17,653
Impact of minimum funding requirement/asset ceiling
Provisions for pensions as at 31 December
-
197
19,013
17,850
Page 61
The pension provision changed as follows.
in EUR '000
2012
restated
2013
Provisions for pensions as at 1 January
Current service cost
17,850
6,844
1,785
1,526
Net interest cost (+) / income (-)
521
186
Remeasurements
- 88
3,675
Gains (-) / losses (+) from settlements
Currency translation effects
Employer contributions
Contributions by plan participants
Benefit payments
Provisions for pensions as at 31 December
-
118
- 16
3
- 562
528
-
110
- 347
- 103
-
4,963
- 130
-
19,013
17,850
The reclassification IFRS 5 amounting to EUR -130k (previous year: EUR 0k) results from the classification of
Rücker Aerospace GmbH as asset held for sale according to IFRS 5.
In the previous year, the changes in the scope of consolidation amounting to EUR 4,963k relate to the
provisions for pensions of Rücker AG, Wiesbaden, and of some subsidiaries at the time of the acquisition.
The present value of the defined benefit obligation changed as follows.
in EUR '000
Present value of the defined benefit obligation as at 1 January
2012
restated
2013
44,169
26,798
Current service cost
1,785
1,526
Interest cost
1,607
1,555
from changes in financial assumptions
- 30
6,505
from experience gains (-) / losses (+)
300
913
- 49
16
Benefit payments
thereof from settlements
Present value of the defined benefit obligation as at 31 December
83
110
- 867
- 1,297
-
- 254
-
8,043
- 130
-
46,868
44,169
The reclassification IFRS 5 amounting to EUR -130k (previous year: EUR 0k) results from the classification of
Rücker Aerospace GmbH as asset held for sale according to IFRS 5.
Page 62
In the previous year, the changes in the scope of consolidation amounting to EUR 8,043k relate to the present
value of the pension obligations of Rücker AG, Wiesbaden, and of some subsidiaries at the time of the
acquisition.
The fair value of plan assets changed as follows.
in EUR '000
2012
restated
2013
Fair value of plan assets as at 1 January
26,516
23,894
1,085
1,369
-
- 118
Return on (-) / loss from (-) plan assets excluding amounts included in interest income
162
- 498
- 34
13
Employer contributions
562
- 528
Interest income
Gains (+) / losses (-) from settlements
Benefit payments
83
-
- 519
- 695
thereof payments from settlements
-
-
-
3,079
27,855
26,516
Fair value of plan assets as at 31 December
The changes of the previous year in the scope of consolidation amounting to EUR 3,079k relate to the fair
value of the plan assets of Rücker AG, Wiesbaden, and of some subsidiaries at the time of the acquisition.
The asset allocation of the fair value of the plan assets is as follows.
in EUR '000
Debt instruments (Germany)
thereof without a quoted market price in an active market
thereof investments in employer company or related parties
2013
%
23,962
1,663
1,663
Plan assets as at 31 December
2,230
23,014
87%
22,918
6%
1,443
5%
1,443
8%
2,230
27,855
%
96
23,862
Asset values of reinsurance cover pension trust (Germany)
Collective foundation (Switzerland)
86%
100
2012
restated
2,059
8%
2,059
100%
26,516
100%
Page 63
The reconciliation of the asset ceiling is as follows.
in EUR '000
2012
restated
2013
Asset ceiling as at 1 January
Gain (+) / loss (-) from changes to the asset ceiling
197
4,437
- 197
- 4,240
-
197
Asset ceiling as at 31 December
The calculation of the present value of the defined benefit obligation is based on the following actuarial
assumptions.
in %
2013
Average discount rate
Biometric accounting bases
2012
3.59
2005 G mortality
tables (D)
BVG 2010 GT (CH)
3.63
2005 G mortality
tables (D)
BVG 2010 GT (CH)
The following sensitivity analyses present the impact on the present value of the defined benefit obligation of an
increase or decrease in the actuarial assumptions.
in EUR'000
Average discount rate
Average life expectancy
2013
%
+ 0,50 %
43,558
-7.06
- 0,50 %
50,536
7.83
+ 1 Jahr
47,514
1.38
- 1 Jahr
46,175
-1.48
The above sensitivity analyses were calculated in analogy to the defined benefit obligation by changing one
assumption while holding all other assumptions and the valuation method constant. If several assumptions
change at the same time, the total effect does not have to be the same as the sum of the individual effects. In
addition, the effects of the individual changes in assumptions are not linear.
For the financial year 2014, the Group expects contributions to defined benefit pension plans to total
EUR 1,772k (previous year: EUR 1,314k).
The weighted average duration of the defined benefit obligation of ATON’s defined benefit plans was 15 years
as at 31 December 2013.
Page 64
30.
Income tax provisions and other provisions
Other provisions changed as follows.
Total
other
provisions
Income
taxes
Personnel
Warranties
Rework
Anticipated
losses
Litigation
risks
9,283
17,540
4,556
2,328
14,174
2,023
26,451
67,072
thereof: current
7,965
12,150
3,993
2,327
7,350
2,023
21,474
49,317
Changes in the scope of
consolidation
142
-
-
-
-
-
1,459
1,459
Currency translation
differences
- 32
- 1,517
-4
-
- 43
- 61
- 761
- 2,386
17,938
14,272
1,169
1,501
7,810
4,680
4,579
34,011
5,092
8,959
1,617
3,139
3,083
504
7,224
24,526
525
496
513
674
5,669
371
10,618
18,341
-
10
-
-
-
-
9
19
in EUR '000
Additions
Consumption
Reversal
Interest effect
Other changes
Other
125
- 100
- 917
917
-6
20
- 182
- 268
21,839
20,750
2,674
933
13,183
5,787
13,713
57,040
thereof: current
20,379
17,569
2,103
932
11,234
5,787
9,541
47,166
The provision for income taxes covers income taxes and interest charged as a result of tax audits.
Personnel provisions relate in particular to partial retirement provisions of EUR 1,603k (previous year:
EUR 3,704k), provisions for severance payments of EUR 14,964k (previous year: EUR 9,839k) and service
anniversaries provisions of EUR 1,032k (previous year: EUR 1,107k).
The provisions for warranties are recognised for statutory and contractual warranty obligations as well as
goodwill services. The provisions were recognised based on the products sold with the period being selected
depending on the product and the industry. The measurement is made on the basis of past experience for
repairs and complaints.
The provisions for rework comprise subsequent obligations from sales of machinery.
Provisions for anticipated losses are recognised for expected contract-related losses from construction, sales
and lease contracts.
The provisions for litigation risks result from current or future legal action whose outcomes cannot be predicted
with certainty. They are measured on the basis of individual assessments of the most likely result.
The technology provisions of the aviation companies of the previous year amounting to EUR 9,963k were
consumed respectively reversed in the financial year 2013. Furthermore, provisions for archiving costs in the
amount of EUR 861k (previous year: EUR 795k) were set up.
Page 65
31.
Financial liabilities break down as follows.
31.12.2013
Total
in EUR '000
Bonds
thereof non-convertible
Liabilities to banks
thereof from current accounts
thereof from loans
Loan liabilities
thereof to third parties
thereof to shareholders
31.12.2012
Remaining maturities
> 1 year
< 5 years
< 1 year
198,951
Total
> 5 years
> 1 year
< 5 years
< 1 year
-
-
-
> 5 years
1,119
197,832
-
-
198,951
1,119
197,832
-
-
-
-
-
83,578
16,808
66,770
-
159,040
89,403
58,397
11,240
762
761
1
-
3,272
3,272
-
-
82,816
16,047
66,769
-
155,768
86,131
58,397
11,240
26,000
24,308
1,692
-
37,135
30,092
7,043
-
1,154
811
343
-
2,096
828
1,268
-
-
-
-
-
33
33
-
-
24,796
23,447
1,349
-
34,981
29,206
5,775
-
thereof to associates
50
50
-
-
25
25
-
-
Finance lease liabilities
35,444
12,898
17,262
5,284
54,223
25,652
22,668
5,903
2,215
656
1,559
-
2,400
762
1,638
-
346,188
55,789
285,115
5,284
252,798
145,909
89,746
17,143
thereof to related parties
Liabilities from derivative
financial instruments
Total
Loans to related parties mainly include a loan of EUR 20,652k (previous year: EUR 21,684k) granted to
VKE Versorgungskasse EDAG-Firmengruppe e.V., Fulda, which bears interest at 4.2 % (previous year: 4.2 %).
In addition, there are various smaller liabilities to related parties. The other loans to related parties have mostly
been agreed until further notice. For this reason the repayment is shown under "No fixed repayments". No
demands for repayment are expected in the next years.
Liabilities to banks include an amount of EUR 762k (previous year: EUR 3,272k) for liabilities from current
account agreements. The contractual arrangements of these contracts regularly specify terms until further
notice. This may result in contractual repayments within one year. For this reason, all cash flows from these
current account agreements have been allocated to the cash flow in 2014. However, the Company’s
management expects that most of these agreements without a time limit will continue to be available to the
Company.
For details of lease liabilities, please refer to Note 19 The Group as lessee. For details of hedging liabilities,
please refer to Note 22 Other financial assets.
Page 66
The tables below show the future undiscounted cash flows of financial liabilities that have an impact on the
future liquidity status of the ATON Group.
Cash flow in 2014
in EUR '000
Bonds
Carrying
amount
Fixed
interest
rate
Variable
interest
rate
Cash flow in 2015-2017
Fixed
interest
rate
Repayment
Variable
interest
rate
Cash flow in 2018 and beyond
Fixed
interest
rate
Repayment
Variable
interest
rate
No fixed
repayment
Repayment
198,951
7,750
-
-
23,250
-
-
7,750
-
200,000
-
Liabilities to
banks
83,578
820
38
10,964
333
3,390
5,051
324
1,492
67,563
-
Finance
lease
liabilities
35,444
1,617
-
12,909
968
-
9,035
1,275
-
13,500
-
Loan liabilities to
shareholders,
related
parties and
associates
24,846
1,640
-
50
-
-
-
-
-
-
24,796
Loan liabilities to third
parties
1,154
-
-
-
-
-
-
-
-
-
1,154
Liabilities
from derivative financial
instruments
2,215
-
-
656
-
-
1,559
-
-
-
-
326,276
-
-
323,331
-
-
2,945
-
-
-
-
6,159
-
-
6,159
-
-
-
-
-
-
-
678,623
11,827
38
354,069
24,551
3,390
18,590
9,349
1,492
281,063
25,950
Trade
payables
Other
liabilities
(financial
instruments
as defined in
IAS 32)
Total
The table below shows the figures as at 31 December 2012, also disclosing the future undiscounted cash flows
of the financial liabilities.
Cash flow in 2013
in EUR'000
Liabilities to
banks
Carrying
amount
Fixed
interest
rate
Variable
interest
rate
Cash flow in 2014-2016
Fixed
interest
rate
Repayment
Variable
interest
rate
Cash flow in 2017 and beyond
Fixed
interest
rate
Repayment
Variable
interest
rate
No fixed
repayment
Repayment
159,040
362
452
89,442
263
1,849
2,220
332
1,744
67,378
-
Finance
lease
liabilities
54,223
1,404
-
25,630
724
-
4,466
1,274
-
24,127
-
Loan
liabilities to
shareholders
and related
parties
35,226
2,250
-
-
572
-
-
1,994
-
5,487
29,739
Loan
liabilities to
third parties
1,908
252
-
-
-
-
-
-
-
-
1,908
Liabilities
from
derivative
financial
instruments
2,400
-
-
2,400
-
-
0
-
-
-0
-
158,800
-
-
158,797
-
-
3
-
-
-
-
11,126
-
-
11,094
-
-
-
-
-
32
-
422,723
4,268
452
287,363
1,559
1,849
6,689
3,600
1,744
97,024
31,647
Trade
payables 1)
Other
liabilities
(financial
instruments
as defined in
IAS 32)
Total
1) Excludes liabilities from construction contracts
Page 67
32.
31.12.2013
Total
31.12.2012
in EUR '000
< 1 year
Total
> 1 year
< 5 years
> 5 years
< 1 year
> 1 year
< 5 years
> 5 years
Trade payables
to third parties
144,465
144,461
4
-
157,277
157,273
4
-
to related parties
330
330
-
-
236
236
-
-
to affiliated companies
741
741
-
-
953
953
-
-
56
56
-
-
-
-
-
-
180,684
177,743
2,941
-
109,115
109,115
-
-
-
-
-
-
335
335
-
-
326,276
323,331
2,945
-
267,916
267,912
4
-
8,459
8,249
210
-
5,093
4,331
762
-
to affiliated companies
60
26
34
-
57
24
33
-
to associates
92
92
-
-
189
189
-
-
-
-
-
-
126
126
-
-
66,634
66,631
3
-
82,928
82,925
3
-
to associates
from construction contracts
to working groups
Other liabilities
Payments received on account
of orders
to related parties
to employees
from social security contributions
1,438
1,351
87
-
2,171
2,094
77
-
from value added tax and other
taxes
39,417
39,417
-
-
28,970
28,970
-
-
from company purchase agreements
10
10
-
-
11
11
-
-
from deferred income
5,528
4,170
1,358
-
5,099
2,506
2,593
-
from other liabilities
7,216
7,140
76
-
11,111
11,038
73
-
128,854
127,086
1,768
-
135,755
132,214
3,541
-
455,130
450,417
4,713
-
403,671
400,126
3,545
-
Total
Construction contracts with a liability balance due to customers are composed of the following net amounts.
in EUR '000
Accumulated direct costs
2013
2012
726,823
519,847
+ accumulated allocated gains
90,346
67,801
- accumulated allocated losses
38,877
21,542
4,043
- 2,049
Accumulated contract revenue
782,335
564,057
- advance payments received
219,150
65,206
- amounts invoiced
799,937
610,590
Amount recognised in the statement of financial position
56,068
2,624
- 180,684
- 109,115
Other liabilities to employees primarily include liabilities from claims under bonus agreements, current salary
payments, untaken leave and overtime credits.
Page 68
Liabilities from social security contributions relate in particular to contributions to be paid to social security
institutions.
Aside from this, other liabilities contain a large number of items that are individually insignificant.
33.
Notes to the statement of cash flows
The statement of cash flows shows how the cash and cash equivalents of the ATON Group changed in the
course of the reporting period as a result of cash inflows and cash outflows. The impact of changes in the
scope of consolidation is disclosed separately only in the cash flow from investing activities. All other changes
are disclosed on a net basis in the individual line items of the cash flow from operating activities and from
financing activities.
The cash funds reported in the statement of cash flows comprise cash, cheques and bank balances.
Income before interest, dividends and income taxes includes earnings before income taxes (EUR 161,212k;
previous year: EUR 151,867k) adjusted by the net amount of interest expense, interest income and dividend
income (EUR 13,383k; previous year: EUR 16,875k). A portion of interest income was recognised under other
financial income and expenses.
In the reporting period, the cash flow from operating activities amounted to EUR 212,366k (previous year:
EUR 139,657k) and thus increased by EUR 72,709k compared to the previous year. The gross cash flow in the
amount of EUR 241,619k decreased by EUR 59,918 compared by the previous year. This development was
countered by the change in other assets and liabilities causing an increase in cash flow by EUR 22,092k
whereas in 2012, there was a decrease in cash flow by EUR 109,913k.
The cash used in investing activities amounts to EUR 129,631k (previous year: EUR 178,286k). The reduction
in cash used was mainly driven by the net outflow from acquisitions and disposals of subsidiaries of
EUR 62,774k (previous year: EUR 80,493k) and the decrease by EUR 4,529k in the net amount from payments
for and proceeds from property, plant and equipment and intangible assets. However, the net balance from
investments in and proceeds from financial assets increased by EUR 72,709k compared to the previous year.
In the reporting period, the cash inflow from financing activities amounted to EUR 86,710k (previous year cash
outflow: EUR 49,507k). The cash inflow essentially results from the EUR 200 million corporate bond issued in
the Prime Standard of the German Stock Exchange (Deutsche Börse) in Frankfurt in October 2013. New bank
loans, including additions to lease liabilities, increased by EUR 113,037k. In addition, repayments decreased by
EUR 22,531k compared to the previous year.
Page 69
34.
Contingent liabilities and other financial obligations
Contingent liabilities
No provisions were recognised for the contingent liabilities listed below, because at the reporting date it was
deemed unlikely that the risk would materialise.
in EUR '000
31.12.2013
of which to affiliated companies
of which to affiliated companies
31.12.2012
Liabilities from guarantees, bill and cheque
guarantees
5,697
-
61
-
Content liabilities from the granting of security for third-party liabilities
2,890
-
3,137
-
Other contingent liabilities
2,286
691
4,413
3,513
10,873
691
7,611
3,513
Contingent liabilities
The probability that the disclosed contingent liabilities will arise is very small.
Other financial obligations
In addition to provisions, liabilities and contingent liabilities, there are other financial obligations, which break
down as follows.
in EUR '000
31.12.2013
31.12.2012
Obligations from non-cancellable operating leases
86,108
94,070
Purchase commitments and other purchase obligations
17,234
46,553
2,746
15,511
106,088
156,134
Miscellaneous other obligations
Other financial obligations
35.
Financial instrument disclosures
Book values, valuation and fair values of financial instruments by measurement categories
Financial instruments are initially measured at fair value and in subsequent periods at amortised costs.
Financial instruments not measured at fair value primarily include cash equivalents, trade receivables, trade
payables and other financial liabilities, overdrafts and long-term loans.
In the case of cash equivalents and overdrafts, the carrying amount approximately corresponds to the fair value
because of the short maturities of these financial instruments. For receivables and payables that are subject to
normal trade credit terms, the carrying amount is likewise very similar to fair value.
The fair values of non-current loans are based on current borrowing interest rates with matching maturity and
credit standards. The fair value of financial liabilities largely corresponds to their carrying amount, because the
agreed interest rate is regularly adjusted to market levels. For fixed-rate items, the carrying amount is likewise
Page 70
very similar to fair value, which results by discounting with a term-adequate interest rate, because the interest
rate always corresponds to the current market rates.
The fair values of assets and liabilities from derivative financial instruments are determined on the basis of
market terms and conditions prevailing as at the reporting date. Recognised valuation models are used to
determine these values. For foreign exchange futures, fair value is based on the expected discounted future
cash flows. Options are measured using valuation models on the basis of market values.
The positive fair value of foreign exchange futures amounts to EUR 1,367k (previous year: EUR 1,055k), the
negative fair value is EUR 192k (previous year: EUR 480k).
The positive fair value of currency options amounts to EUR 0k (previous year: EUR 3,062k), the negative fair
value is EUR 2,023k (previous year: EUR 1,920k).
The following table shows the fair values and carrying amounts of the financial assets and financial liabilities
included in the respective items of the balance sheet.
A distinction is made between the following financial assets and financial liabilities, aggregated into
measurement categories:
[LaR] Loans and receivables
[HtM] Held-to-maturity investments
[FAHfT] Financial assets held for trading
[AfS] Available-for-sale financial assets, measured at amortised cost, because fair value cannot be
determined
[FLAC] Financial liabilities measured at amortised cost
[FLHfT] Financial liabilities held for trading
If circumstances occur that require a different classification, they are reclassified on a quartly basis.
Page 71
in EUR '000
Recognition under IAS 39
Measurement
category
under IAS 39
Carrying
amount as at
31.12.2013
Amortised
cost
Cost
Fair Value
Recognition
under IAS 17
Fair Value
31.12.2013
Assets
LaR
325,018
325,018
325,018
Trade receivables
LaR
473,732
473,732
473,732
LaR
46,439
46,439
46,439
n/a
20,215
20,215
20,215
1,039
Other receivables and loans
Financial instruments as defined
in IAS 32
Not financial instruments as defined
in IAS 32
Other non-derivative financial assets
Held-to-maturity investments
HtM
1,039
AfS
10,361
1,039
Non-consolidated equity investments
AfS
3,929
FAHfT
1,367
Trade payables
FLAC
145,592
145,592
145,592
Non-convertible bond
FLAC
198,951
198,951
198,951
FLAC
83,578
83,578
83,578
Other interest-bearing liabilities
FLAC
26,000
26,000
26,000
FLAC
6,311
6,311
6,311
in IAS 32
n/a
300,286
300,286
300,286
n/a
35,444
10,361
10,361
3,929
3,929
Derivative financial assets
Foreign exchange futures
1,367
1,367
Liabilities
Other non-interest-bearing liabilities
in IAS 32
35,444
35,444
Derivative financial liabilities
FLHfT
192
192
192
Currency options
FLHfT
2,023
2,023
2,023
LaR
845,189
845,189
HtM
1,039
1,039
AfS
14,290
FAHfT
1,367
Financial liabilities measured at amortised cost (FLAC)
FLAC
460,432
Financial liabilities held for trading
(FLHfT)
FLHfT
2,215
Of which aggregated into IAS 39
measurement categories
Financial assets held for trading
(FAHfT)
Page 72
845,189
1,039
3,929
10,361
14,290
1,367
1,367
460,432
460,432
2,215
2,215
in EUR '000
Recognition under IAS 39
Measurement
category
under IAS 39
Carrying
amount as at
31.12.2012
Amortised
cost
Cost
Fair Value
Recognition
under IAS 17
Fair Value
31.12.2012
Assets
LaR
164,067
164,067
164,067
Trade receivables
LaR
464,753
464,753
464,753
LaR
34,581
34,581
34,581
n/a
30,011
30,011
30,011
Held-to-maturity investments
HtM
1,344
1,344
AfS
7,577
Non-consolidated equity investments
AfS
1,827
FAHfT
1,055
1,055
1,055
Currency options
FAHfT
3,062
3,062
3,062
Trade payables
FLAC
158,800
158,800
158,800
FLAC
159,040
159,040
159,040
Other interest-bearing liabilities
FLAC
37,135
37,135
37,135
FLAC
11,126
11,126
11,126
in IAS 32
n/a
233,744
233,744
233,744
n/a
54,223
Other receivables and loans
in IAS 32
in IAS 32
Other non-derivative financial assets
1,344
7,577
7,577
1,827
1,827
Liabilities
Other non-interest-bearing liabilities
in IAS 32
54,223
54,223
FLHfT
480
480
480
Currency options
FLHfT
1,920
1,920
1,920
LaR
663,401
663,401
HtM
1,344
1,344
AfS
9,404
Financial assets held for trading
(FAHfT)
FAHfT
4,117
Financial liabilities measured at
amortised cost (FLAC)
FLAC
366,101
Financial liabilities held for trading
(FLHfT)
FLHfT
2,400
Of which aggregated into IAS 39
measurement categories
663,401
1,344
1,827
7,577
9,404
4,117
4,117
366,101
366,101
2,400
2,400
Page 73
The following tables shows the gross and net amounts of the other financial assets and financial liablities as at
31 December 2013.
Gross amounts
reported in the
balance sheet
in EUR '000
Gross amounts
offset in the
balance sheet
Net amounts
reported in the
balance sheet
Amounts not
offset in the
balance sheet
Total net
amount
1,367
1,367
- 1,367
2,215
2,215
- 1,367
848
The following tables shows the gross and net amounts of the other financial assets and financial liablities as at
31 December 2012.
Gross amounts
reported in the
balance sheet
in EUR '000
Gross amounts
offset in the
balance sheet
Net amounts
reported in the
balance sheet
Amounts not
offset in the
balance sheet
Total net
amount
4,117
4,117
- 2,400
2,400
2,400
- 2,400
1,717
The table below shows the assets and liabilities measured at fair value as at 31 December 2013.
in EUR '000
Level 1
Level 2
Level 3
Total
Assets
10,361
10,361
1,367
1,367
192
192
2,023
2,023
Liabilities
Currency options
Page 74
The table below shows the assets and liabilities measured at fair value as at 31 December 2012.
in EUR '000
Level 1
Level 2
Level 3
Total
Assets
7,577
7,577
1,055
1,055
Currency options
3,062
3,062
480
480
1,920
1,920
Liabilities
Currency options
The fair value of financial instruments traded on an active market are based on the market price quoted on the
reporting date. The market is considered active, if quoted prices are easily available and at regular intervals at
an exchange, from a trader, broker, industry association, price calculation service or a supervisory authority
and the prices reflect current recurring market transactions conducted at arm’s length principle. For assets held
by the Group, the appropriate quoted market price is the bid price offered by the buyer. These instruments,
most of which are equity instruments available for sale, are included in level 1.
The fair value of financial instruments not traded on an active market (e.g. over-the-counter derivatives) are
determined on the basis of a valuation method. Fair value is thus determined on the basis of the results of a
valuation method that uses market data to the largest possible extent, avoiding company-specific data as far as
possible. If all input data required to determine the fair value is observable, the instrument is assigned to
level 2.
If one or more significant input data is not based on observable market data, the instrument is assigned to
level 3.
Net gains or losses by measurement category
The Group recognises interest on financial instruments and the other components of net gains or losses in net
financing income or expenses. Allowances on trade and other receivables assigned to the LaR measurement
category are an exception: they are reported under other expenses or other income. Likewise, currency
translation differences of the LaR and FLAC measurement categories are assigned to other expenses or other
income.
The net gains or losses on financial assets and liabilities measured at fair value through profit or loss include
gains or losses from changes in fair value as well as interest expense or income from these financial
instruments.
The net gains or losses on available-for-sale financial assets include, among other things, income from equity
investments and realised gains on the disposal of shares in such investments. The net interest income or
Page 75
expense on financial liabilities measured at amortised cost includes primarily interest expense on financial
liabilities. In addition, the item includes interest income from discounting or compounding on trade payables.
The net gains or losses by measurement category are as follows.
From subsequent measurement
in EUR '000
From
interest
and dividends
Loans and Receivables (LaR)
Fair
value
Net gain or loss
Currency
translation
Allowances
From
disposal
2013
2012
1,906
51
- 4,106
- 2,409
-3
- 4,561
- 7,211
-9
-
-
-
-
-9
-
200
-
-
- 15
-1
184
181
61
961
-
-
173
1,195
28
Financial Liabilities Measured
at Amortised Cost (FLAC)
- 12,204
-
- 415
-
-
- 12,619
- 12,487
Net gain/loss
- 10,046
1,012
- 4,521
- 2,424
169
- 15,810
- 19,489
Held-to-Maturity Investments
(HtM)
Available-for-Sale Financial
Assets (AfS)
Financial Instruments
Held for Trading
(FAHfT und FLHfT)
Fair value adjustments amounting to EUR 419k (previous year: EUR 80k) were recognised directly in equity in
the financial year under review, because changes in value of available-for-sale financial instruments are
recognised in equity.
The total interest income and expense recognised in net financing income or expenses for financial assets and
financial liabilities not classified as at fair value through profit or loss is as follows.
in EUR '000
2012
restated
2013
Interest income
1,897
3,905
Interest expense
12,204
13,662
- 10,307
- 9,757
Total net interest income or expense breaks down as follows into IAS 39 measurement categories.
in EUR '000
2012
restated
2013
1,906
1,430
-9
257
Financial liabilities measured at amortised cost (FLAC)
- 12,204
- 11,444
Net interest income/expense
- 10,307
- 9,757
Page 76
The allowances recognised to LaR are as follows.
in EUR '000
2013
2012
Bad debt expense
404
2,671
Expenses from additions to specific allowances
435
8,748
Specific allowances (impairment losses) on loans
250
345
Income from release of specific allowances
- 5,212
- 1,831
Income from receivables written off
- 1,285
- 27
- 77
- 463
- 5,485
9,443
Income (reversals of impairment losses) from loans
The allowances recognised to AfS and HtM are as follows.
in EUR '000
2013
Impairment losses on equity investments
2012
-
0
Impairment losses on securities
- 15
- 24
- 15
- 24
-
- 22,098
36.
Objectives and methods of financial risk management
Risk management principles
The main financial instruments used by the Group – except derivative financial instruments – comprise bank
loans and overdrafts, finance leases and trade payables. The main purpose of these financial instruments is to
finance the Group’s operating activities. Besides, the Group has different financial assets, such as securities,
trade receivables, cash and short-term deposits, which result directly from its operating activities.
With regard to its assets, liabilities and planned transactions, the Group is subject to various market risks, in
particular risks from changes in exchange rates and interest rates, as well as liquidity and credit risks. The aim
of financial risk management is to limit these market risks specifically by continuously taking operational and
financial measures. Selected derivative and non-derivative hedging instruments are used. In general, risks are
hedged only if they may habe an impact on the Group’s cash flows. In particular, foreign exchange futures and
currency options are used as derivative financial instruments to hedge against foreign currency risks arising
from the Group companies’ operating activities.
Financial policy is defined by Group management on an annual basis. The implementation of financial policy
and ongoing risk management are the responsibility of the subgroups and single entities. To monitor financial
policy, Group management is regularly informed of the current risk exposure in terms of the extent and amount
Page 77
in quarterly meetings. In addition, certain transactions exceeding the nature and extent of normal business
transactions are subject to prior approval by Group management.
Risks from exchange rate fluctuations are limited by locally procuring most materials needed in the
manufacturing and assembly processes in the respective countries.
Credit risk
As a result of their operating activities and certain financing activities, the Group companies of ATON are
exposed to credit risk. Credit risk exists where a business partner involved in a transaction with non-derivative
or derivative financial instruments cannot meet its obligations and this causes a loss of assets. As part of their
operations, the Group companies enter into transactions only with third parties rated as creditworthy. Credit
checks are performed for new customers. In the case of existing customer relationships, the customer’s
payment behaviour is analysed on a regular basis. In addition, orders and receivables are secured with letters
of credit from major banks. Most of the Group companies have business relationships with large-scale
customers (especially international OEMs). The resulting risk is considered low, because these customers have
high high degrees of solvency and in addition there are no material dependencies. The end customer business
with private individuals is of minor importance to the Group.
In the operating business, outstandings are continuously monitored on a divisional, i.e. decentralised, basis, so
that the Group is not exposed to any material credit risk. The trade and other receivables of EUR 533,018k
(previous year: EUR 518,910k ) as well as other financial assets of EUR 24,073k (previous year: EUR 21,424k)
reported in assets represent the maximum credit risk.
Risk of changes in interest rates
Most of the Group’s financing is based on fixed-rate loans granted by the shareholder family and companies
related to them. The ATON Group is generally exposed to fluctuations in market interest rates. Fluctuations in
interest rates primarily concern liabilities to banks. These include among other things currnt account overdrafts
as well as variable-rate loans and are therefore directly affected by changes in interest rates. These changes
have an impact on future cash flows. In our opinion, no material risks arise from the fluctuations in market
interest rates.
Page 78
The table below shows the sensitivity of consolidated profit after tax to a change in interest rates that is deemed
reasonably possible. All other variables have remained unchanged.
The impact on equity includes the impact on both OCI and operating profit.
in EUR '000
Change in interest
rate in basis
points
2013
Impact on profit
after tax
Impact on
equity
+ 100
- 836
- 836
./. 100
836
836
+ 100
- 769
- 769
./. 100
769
769
2012
Foreign currency risk
Foreign currency risks result from investments, financing transactions and operating activities. Significant risks
from foreign currencies are hedged, if they affect the Group’s cash flows. Foreign currency risks that do not
affect the Group’s cash flows (i.e. risks resulting from the mere translation of the assets and liabilities of foreign
corporate units into the Group’s reporting currency) are not hedged.
The foreign currency risks regularly relate to current receivables and liabilities denominated in currencies other
than the local currencies of the companies in the ATON Group or those that will arise in the normal course of
business. The Group is exposed to material foreign exchange risks mainly because of the development of the
USD-, CAD-, JPY exchange rate.
As at the reporting date, the Group was not exposed to any material risks from investment transactions
denominated in foreign currency.
The Group companies settle most of their operating activities in their respective functional currencies. For this
reason, the Group’s foreign currency risk from operating activities is considered low. However, some Group
companies are exposed to foreign currency risks in connection with planned payments not denominated in their
functional currency. In some cases, derivative financial instruments (foreign exchange futures and currency
options) are used to minimise the risk of changes in exchange rates. These financial instruments are used to
hedge only existing or expected foreign currency risks.
Page 79
As at 31 December 2013, the only currencies involved were the US dollar, the Canadian dollar and the
Japanese yen as in the previous year. The non-derivative and derivative financial instruments existing at the
end of the reporting period were measured in a hypothetical scenario as part of a sensitivity analysis. The
effects of a 10 % increase/decrease in a currency per exchange rate to profit after taxes and equity were as
follows as of 31 December 2013.
in EUR '000
2013
2012
EUR/USD
EUR/CAD
EUR/JPY
+ 10
2,450
2,303
23
./. 10
- 2,995
- 2,815
- 29
+ 10
2,408
2,887
489
./. 10
- 2,408
- 2,887
- 489
Relevant risk variables are all non-functional currencies in which the Group enters into financial instruments.
The currency sensitivity analyses are based on the following assumptions: Material non-derivative financial
instruments (cash and cash equivalents, receivables, interest-bearing liabilities, finance lease liabilities, noninterest-bearing liabilities) are either denominated directly in the functional currency or, in material
circumstances, they are transferred into the functional currency by using derivatives.
Equity instruments held by the Group are non-monetary and therefore not associated with foreign currency risk
as defined in IFRS 7.
Liquidity risk
Ensuring permanent solvency is the responsibility of the respective management teams of the subgroups and
single entities. The central objective specified for the Group is to continuously ensure that financial
requirements are covered by using current account overdrafts, loans and leases. Central monitoring of the
liquidity of the individual Group companies is performed with weekly reports to the parent ATON.
The information provided is presented to Group management on a weekly basis for risk management purposes.
Based on the current and expected business situation, the liquidity risk is considered low. Nevertheless,
liquidity continues to be ensured through medium-term and long-term lines of credit. In general, it is ensured
that there are sufficient free lines of credit. Appropriate measures are taken on time to ensure the financing of
planned investments.
Please refer to Note 31 Financial liabilities for the liquidity analysis.
Page 80
Covenant Risk
The majority of financing contracts with banks include covenants that are based on predefined financial ratios.
The ratios mainly are equity ratios, leverage ratios and in individual cases, interest coverage ratios. If one of the
agreed threshold of the covenants is violated, the lender has the right of termination.
In the terms and conditions of the bond there are clauses included, which limit the financial leverage of the
ATON Group as well as ATON subsidiaries by using financial ratios. Moreover, the terms and conditions
include regulations regarding securing financial liabilities, transactions with owners, change of control and the
maximum amount of dividends.
In the case of change of control each bondholder has the right of termination, in breach of other obligations a
creditor quorum of 10% is required for the validity of the termination. The clauses of the bond and the
covenants of financing contracts with banks are permanently monitored concerning the companies' current
financial results, thereby facilitating the early detection of risks. In the financial year 2013 the clauses of the
issuance of the bond were complied with.
Other price risks
As part of the disclosure of market risks, IFRS 7 also requires information on how hypothetical changes in risk
variables impact on the prices of financial instruments. Eligible risk variables are exchange prices or indices in
particular.
in EUR '000
2013
2012
Change in
prices in %
Impact on profit
after tax
Impact on
equity
+ 10
- 73
- 73
./. 10
73
73
+ 10
- 93
- 93
./. 10
93
93
Capital management/control
The main objective of the Group’s capital management system is to ensure that the Group’s ability to repay
debt and its financial strength are maintained, combined with the corresponding credit rating and equity ratio.
The Group manages its capital structure and makes adjustments in line with changes in economic conditions.
The shareholders provide loans and/or equity so that the capital structure can be maintained or adjusted.
Capital is primarily managed on the basis of a dynamic debt ratio (I and II), which corresponds to the ratio of
first and second degree net financial liabilities to adjusted EBITDA. The debt ratio I monitored by management
should not exceed 4 and the debt ratio II should not be higher than 10.
Page 81
In the year under review, the dynamic debt ratios I and II had returned to the specified range.
in EUR '000
Adjusted earnings before interest, taxes, depreciation and amortisation
2013
2012
2011
259,622
227,883
202,073
83,578
159,040
74,825
Leasing liabilities
35,444
54,223
60,103
Other financial liabilities
202,371
4,308
28,897
321,393
217,571
163,825
325,018
164,067
251,314
First-degree net financial liabilities
- 3,625
53,504
- 87,489
Liabilities to shareholders/related parties
24,796
35,014
105,970
Investments in securities that can be liquidated at short notice
11,545
8,233
24,700
9,626
80,285
- 6,219
Dynamic debt ratio I
- 0.0
0.2
- 0.4
Dynamic debt ratio II
0.0
0.4
- 0.0
Second-degree net financial liabilities
* Adjustments apply to impairments regarding IFRS 5
The financing arrangements of some subsidiaries contain covenants, which may cause them to become
repayable or increase the financing costs. These covenants have been met.
Page 82
37.
Segment reporting
The management board is the main decision maker of the Group. Management has determined the operating
segments for the purpose of allocating resources and assessing performance. The management board defines
the business from a product perspective with the segments AT Tech, AT Mining, AT Med Tech and AT
Aviation.
The services of the segment AT Tech cover in particular the areas of engineering and plant construction for the
automotive industry, along with other sectors of the mobility industry, as well as manufacturing of specialised
machines.
The segment AT Mining Tech offers mining and shaft-sinking services and products worldwide.
The segment AT Med Tech develops solutions for the healthcare market in the fields of surgery and
diagnostics, specialising in X-ray diagnostics, basic medical diagnostics and minimally invasive surgery, as well
as products for the pharmaceuticals industry and hospitals.
The segment AT Aviation comprises regional and charter flight as well as business aviation.
The management board assesses the performance of the operating segments based on revenue, EBIT and
EAT (profit or loss for the period). The assessment is made by means of normalised figures. In the normalised
figures, impairment losses as well as the non-operating result are excluded.
Non-cash transactions are mainly summarised in the non-operating result. The non-operating result contains
the result from disposal of consolidated subsidiaries, from disposal of non-current assets, income and
expenses from foreign currency translation, income from the release of provisions as well as other income and
expenses from previous years.
Sales between segments are carried out in accordance with standard market practices. The revenue from
external parties reported to the management board is measured in a manner consistent with that in the income
statement.
Page 83
The following table presents information for the Group segments.
AT Tech
in EUR '000
External revenue (net)
Internal revenue (net)
Revenue
Changes in inventories
2013
At Mining
2012
restated
1,072,799
899,396
2013
AT Med Tech
2012
restated
809,330
866,124
2013
2012
255,188
257,769
329
605
1,474
3,907
957
256
1,073,128
900,001
810,804
870,031
256,145
258,025
16,495
- 1,572
2,893
2,219
4,837
1,986
Gross performance
1,089,623
898,429
813,697
872,250
260,982
260,011
Non-operating result
3,511
14,156
8,556
- 2,201
- 465
- 763
EBITDA
97,239
74,316
108,207
112,702
30,956
30,811
Normalised EBITDA
93,728
60,160
99,651
114,903
31,421
31,574
29,771
17,589
32,413
29,568
9,641
9,041
199
614
-
101
105
-
67,269
56,113
75,794
83,033
21,211
21,770
Impairment losses
EBIT
Normalised EBIT
63,957
42,571
67,238
85,335
21,781
22,533
- 13,037
6,602
- 7,072
- 6,844
- 802
- 1,582
EBT
54,232
62,715
68,722
76,189
20,409
20,188
Normalised EBT
50,920
49,173
60,166
78,491
20,979
20,951
Income taxes
16,623
10,721
20,835
25,077
7,038
6,129
EAT
37,609
51,994
47,887
51,112
13,372
14,059
Normalised EAT
34,298
38,452
39,330
53,414
13,941
14,822
Financial result
attributable to non-controlling interest
542
- 265
381
- 1,823
-
-
37,067
52,259
47,506
52,935
13,372
14,059
Normalised EAT attributable to
owners of the parent
33,756
38,717
38,950
55,237
13,941
14,822
AT Tech
At Mining
AT Med Tech
31.12.2013
31.12.2012
restated
31.12.2013
31.12.2012
restated
31.12.2013
31.12.2012
Segment assets
958,364
743,759
431,432
474,417
240,853
255,637
Segment liabilities
678,745
487,217
231,047
275,648
54,196
58,529
in EUR '000
Page 84
AT Aviation
in EUR '000
External revenue (net)
Internal revenue (net)
Revenue
Changes in inventories
2013
ATON Group
2013
2012
2012
2013
2012
restated
164,052
200,017
34
0
2,301,403
2,223,306
166
151
- 388
- 779
2,538
4,140
164,218
200,168
- 354
- 779
2,303,941
2,227,446
-
-
- 364
-
23,862
2,634
Gross performance
164,218
200,168
- 718
- 779
2,327,802
2,230,080
Non-operating result
6,093
10,122
5,844
5,131
23,540
26,446
EBITDA
26,168
38,908
- 2,949
- 2,408
259,622
254,329
Normalised EBITDA
20,074
28,786
- 8,793
- 7,539
236,082
227,883
64,469
4,858
8,064
272
208
76,955
Impairment losses
5,422
13,070
3
6,317
5,730
20,102
15,887
17,774
- 3,224
- 8,933
176,937
169,758
EBIT
Normalised EBIT
15,216
20,722
- 9,065
- 7,747
159,127
163,414
Financial result
- 3,691
- 24,292
8,877
8,225
- 15,725
- 17,891
EBT
12,196
- 6,518
5,652
- 708
161,212
151,867
Normalised EBT
11,525
- 3,570
- 188
478
143,402
145,523
Income taxes
4,897
5,237
-
- 1,496
49,392
45,668
EAT
7,300
- 11,755
5,652
788
111,820
106,199
Normalised EAT
6,629
- 8,807
- 188
1,974
94,010
99,856
attributable to non-controlling interest
-
-
462
387
1,385
- 1,701
7,300
- 11,755
5,190
401
110,435
107,900
Normalised EAT attributable to owners of
the parent
6,629
- 8,807
- 650
1,587
92,625
101,557
AT Aviation
in EUR '000
Segment assets
Segment liabilities
ATON Group
31.12.2013
31.12.2012
31.12.2013
31.12.2012
31.12.2013
31.12.2012
restated
163,729
210,682
-91,913
-190,347
1,702,465
1,494,148
67,203
85,751
- 77,535
- 107,770
953,656
799,375
Page 85
OTHER DISCLOSURES
38.
Auditor‘s fees
For the services provided by PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft the
following fees have been recognised as expenses.
in EUR '000
2013
Audits
2012
970
714
90
159
Audit-related services
Tax consultation services
Other services
Total
39.
73
22
385
306
1,518
1,201
Related party transactions
In addition to the subsidiaries included in the consolidated financial statements, ATON GmbH has direct or
indirect relationships with the shareholders, non-consolidated affiliated subsidiaries, associates, joint ventures
and other related parties in the course of normal business operations. These relationships are subject to
disclosure requirements in accordance with IAS 24. Related parties, i.e. parties over which the ATON Group
has control or can exercise a significant influence are listed in the section scope of consolidation. The volume
of services provided from the ATON Group to related parties breaks down as follows.
in EUR ’000
Shareholders
Non-consolidated subsidiaries
Associates
Joint ventures
2013
31.12.2013
2012
31.12.2012
Revenue, other income
and interest
Receivables
outstanding
Revenue, other income
and interest
Receivables
outstanding
-
-
-
-
262
8,838
517
4,255
3
2,190
52
756
-
2,770
234
8,174
Other related parties
4,181
3,267
2,943
13,732
Total
4,446
17,065
3,746
26,917
Page 86
2013
Purchased merchandise/services, other
operating expenses
and interest
in EUR ’000
Shareholders
31.12.2013
2012
31.12.2012
Liabilities
outstanding
Purchased merchandise/services, other
operating expenses
and interest
Liabilities
outstanding
-
60
-
89
255
790
349
765
Associates
-
148
1
189
Joint ventures
-
-
-
335
Other related
parties
10,735
25,127
17,021
35,555
Total
10,990
26,125
17,371
36,933
Non-consolidated
subsidiaries
Related companies are HORUS Vermögensverwaltungs GmbH & Co. KG, HORUS Beteiligungs GmbH,
HORUS Finanzholding GmbH, HORUS Ellwanger & Geiger Holding GmbH, HORUS Spiekermann Holding
GmbH, HORUS V-Bank Holding GmbH and their subsidiaries.
The HORUS Vermögensverwaltungs GmbH & Co. KG finances the companies of the ATON Group by granting
loans. The Aircraft Asset Management AAM GmbH & Co. KG, an indirect subsidiary of HORUS
Vermögensverwaltungs GmbH, leases aircrafts to Augsburg Airways GmbH & Co. KG and DC Aviation GmbH.
Income and expenses with related parties mainly result from these lease relationships.
Transactions with related parties are conducted in accordance with standard market practices.
Remuneration of management board
The remuneration paid to the management board amounted to EUR 3,740k in the financial year (previous
year: EUR 3,708k).
There were no advances or loans to members of management board, nor were there contingent liabilities or
pension obligations as at the reporting date.
40.
List of shareholdings
Concerning the list of shareholdings, please refer to the appendix, which is an integral part of these notes.
41.
Events after the balance sheet date
On 9 December 2013, ATON GmbH signed an agreement on capital contribution, transfer, loan and post
formation acquisition with its subsidiary EDAG Engieering AG (formerly ATON Engineering AG).
According to this agreement, all 11,718,750 limited partnership shares (Kommanditaktien) of EDAG GmbH &
Co. KGaA with a nominal value of EUR 2.56 and a total amount of EUR 30.0 million were contributed to EDAG
Engineering AG by means of a mixed contribution. In return, EDAG Engineering AG issued 19,950,000 new
shares and a loan receivable amounting to EUR 40.0 million. From the Group’s perspective this is a transaction
under common control.
Page 87
On 19 February 2014, the extraordinary general meeting of the EDAG Engineering AG granted consent to the
transactions. The contribution was registered 6 March 2014 at the commercial register in Munich.
In order to focus the business model on integrated engineering services for the automotive business, the
Rücker Group withdrew from activities in the aviation industry in the first quarter 2014 and sold its subsidiaries
Rücker Aerospace GmbH (Germany), Rücker France S.A.R.L. (France) and Silver Aerospace B.V. (The
Netherlands) as of 1 April 2014. The sale of the aviation activities of the Rücker Group will have a small positive
impact on the profit for the period 2014.
Page 88
42.
Responsibility statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated
financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Group, and the Group Management Report includes a fair review of the development and performance of the
business and the position of the Group, together with a description of the material opportunities and risks
associated with the expected development of the Group.
Munich, 23 April 2014
ATON GmbH
Management Board
Thomas Eichelmann
Jörg Fahrenbach
Page 89
Corporate Structure of ATON GmbH direct and indirect shares
Share in %
No.
Company
City
Country
Hallbergmoos
Germany
Munich
Germany
Hallbergmoos
Germany
Munich
Fulda
direct
Equity
as per
Net
Result
Dec
2013
2013
indirect
Currency
100.0
kEUR
33
2
kEUR
19,654
- 745
100.0
kEUR
13,670
- 384
Germany
100.0
kEUR
56,052
34,999
Germany
80.0
kEUR
859
- 84
Petersberg
Germany
100.0
kEUR
- 542
237
- 26
I. Affiliated Companies
1. Consolidated Companies
a) Domestic companies
1.
AAM Haltergesellschaft Nr. 1 MbH
2.
AT Aviation GmbH
3.
Augsburg Airways Flugzeugsbeteiligung Nr. 1
GmbH & Co. KG
4.
Augsburg Airways GmbH i.L.*****
5.
BBZ Berufsbildungszentrum Fulda GmbH
6.
BBZ Mitte GmbH
7.
BFFT aeromotive GmbH
Gaimersheim
Germany
100.0
kEUR
- 15
8.
BFFT Gesellschaft für Fahrzeugtechnik mbH
Gaimersheim
Germany
100.0
kEUR
20,486
4,682
9.
BFFT Holding GmbH
Munich
Germany
100.0
kEUR
0
- 1,516
10.
CLYXON Laser GmbH
Berlin
Germany
100.0
kEUR
77
0
11.
DC Aviation GmbH****
Stuttgart
Germany
100.0
kEUR
3,071
- 723
12.
Deilmann-Haniel GmbH
Dortmund
Germany
100.0
kEUR
15,323
6,940
13.
Deilmann-Haniel International Mining and Tunneling
GmbH
Dortmund
Germany
kEUR
116,501
15,635
14.
Deilmann-Haniel Mining Systems GmbH
Dortmund
Germany
100.0
kEUR
11,301
- 600
15.
EDAG Aerospace GmbH
Fulda
Germany
100.0
kEUR
4,424
-2
16.
EDAG Engineering AG
(formerly ATON Engineering AG)
Munich
Germany
100.0
kEUR
41,103
1,048
17.
EDAG GmbH & Co. KGaA
Fulda
Germany
100.0
kEUR
68,969
24,880
18.
EDAG Production Solutions GmbH & Co. KG
Fulda
Germany
100.0
kEUR
116
7,442
19.
EDAG Rail GmbH
Fulda
Germany
100.0
kEUR
2
-1
20.
EDAG SIGMA Concurrent Engineering GmbH
Fulda
Germany
100.0
kEUR
14,435
5,109
21.
FFT GmbH & Co. KGaA
Fulda
Germany
kEUR
18,188
1,863
22.
FFT Produktionssysteme GmbH & Co. KG
Fulda
Germany
kEUR
23,054
5,424
23.
Haema AG
Leipzig
Germany
kEUR
40,545
3,679
24.
Haus Kurfürst GmbH
Fulda
Germany
100.0
kEUR
22
0
25.
Hövelmann GmbH
Aachen
Germany
100,0 *
kEUR
- 811
- 320
26.
Jota GmbH
Fulda
Germany
100.0
kEUR
- 106
-7
27.
REFORM Maschinenfabrik
Adolf Rabenseifner GmbH & Co. KG
Fulda
Germany
kEUR
61
3
28.
Rosata Grundstücks-Vermietungsgesellschaft
mbH & Co. Objekt Fulda-West KG
Grünwald
Germany
100.0
kEUR
- 1,527
61
29.
Rücker Aerospace GmbH
Hamburg
Germany
100,0 *
kEUR
4,006
13
30.
Rücker Akademie GmbH
Wiesbaden
Germany
100,0 *
kEUR
197
3
31.
Rücker EKS GmbH
Weingarten
Germany
76,5 *
kEUR
2,240
928
32.
Rücker GmbH
Wiesbaden
Germany
100,0 *
kEUR
5,866
816
33.
Rücker Testing Services GmbH
Munich
Germany
100,0 *
kEUR
3,946
672
34.
Scherwo Steuerungstechnik GmbH
Gauting
Germany
65.0
kEUR
372
- 82
35.
TSO Industrieanlagen Planung und
Vertrieb GmbH
Uehlfeld
Germany
kEUR
7,668
1,432
36.
VR-Leasing Malakon GmbH & Co Immobilien KG
Eschborn
Germany
kEUR
- 804
299
37.
W.O.M. World of Medicine GmbH
Berlin
Germany
kEUR
642
287
38.
World Of Medicine Lemke GmbH
Berlin
Germany
100.0
kEUR
642
287
39.
WORLD OF MEDICINE Produktions-GmbH
Ludwigsstadt
Germany
100.0
kEUR
- 590
241
40.
Ziehm Imaging GmbH****
Nuremberg
Germany
100.0
kEUR
28,064
3,511
Brisbane
Australia
100.0
kEUR
8,200
8,993
Going am Wilden Kaiser
Austria
100.0
kEUR
1,251
- 3,201
100.0
100.0
100.0
100.0
100.0
100.0
100.0
66.7
85,0 *
100.0
b) Foreign Companies
41.
A.C.N. 133126904 Pty Limited
42.
ATON Group Finance GmbH
43.
ATON US Inc.
44.
BFFT of America
45.
Delaware
USA
kUSD
66,067
- 1,888
Los Angeles
USA
100.0
kEUR
10
7
Deilmann-Haniel Botswana (Pty.) Ltd.
Gaborone
Botswana
74.0
kEUR
16
0
46.
Deilmann-Haniel Schachtostroj OOO
Berezniki
Russia
100.0
kEUR
3,896
4,505
47.
Drilling Resources (Pty.) Ltd. ***
Isando
South
Africa
74.0
kEUR
1
0
Page 90
Share in %
No.
Company
City
Country
direct
indirect
Currency
Equity
as per
Net
Result
Dec
2013
2013
48.
EDAG do Brasil Ltda.
Sao Bernardo do Campo
Brazil
100.0
kBRL
16,754
1,342
49.
EDAG Engineering & Design India Priv. Ltd.
Neu Dehli
India
100.0
kINR
155,073
393,517
50.
EDAG Engineering and Design
(Shanghai) Co. Ltd.
Shanghai
China
100.0
kCNY
- 5,656
- 3,905
51.
EDAG Engineering Ltd.
Cranfield
Great
Britain
100.0
kGBP
50
- 100
52.
EDAG Holding Sdn. Bhd. Malaysia
Shah Alam
Malaysia
100.0
kMYR
1,792
147
53.
EDAG Hungary Kft.
Györ
Hungary
100.0
kEUR
1,082
269
54.
EDAG Inc.
Detroit
USA
100.0
kUSD
- 1,221
- 1,960
55.
EDAG Japan Co., Ltd.
Yokohama
Japan
100.0
kJPY
78,174
12,773
56.
EDAG México, S.A. de C.V.
Puebla
Mexico
100.0
TMXN
- 1,253
- 1,303
57.
EDAG Production LLC
Detroit
USA
100.0
kUSD
0
0
Mladá Boleslav
Czech
Republic
100.0
kCZK
32,861
14,032
58.
EDAG Production Solution CZ s.r.o.
59.
EDAG Production Solutions Korea Ltd.
Seoul
Korea
100.0
kKRW
159,882
- 9,631
60.
EDAG S.A.R.L.
Paris
France
100.0
kEUR
103
-6
61.
EDAG SERVICIOS México, S.A. de C.V.
Puebla
Mexico
100.0
kMXN
125
75
62.
EDAG Slovakia spol. s.r.o. i.L.
Bratislava
Slovakia
100.0
kEUR
54
0
63.
EDAG Technologies India Priv. Ltd.
Neu Dehli
India
100.0
kINR
283
- 544
64.
Eroc Holdings Pty Limited
Eagle Farm
Australia
100.0
kEUR
3
0
65.
Eroc Malaysia Sdn. Bhd.
Kuala Lumpur
Malaysia
100.0
kEUR
- 56
-9
66.
FFT Espana Tecnologías de Automoción S.A.
Silla (Valencia)
Spain
100.0
kEUR
3,171
568
67.
FFT Mexico S.A. de C.V.
Puebla
Mexico
100.0
kMXN
53,080
10,241
68.
FFT Production Systems S.R.L. Rumänien
Municipiul Campulung
Romania
100.0
kRON
2,877
654
69.
FFT Production Systems Shanghai Co., Ltd.
Shanghai
China
100.0
kCNY
31,083
24,398
70.
FFT Production Systems, Inc.
Auburn Hills, MI
USA
100.0
kUSD
- 1,045
- 811
71.
FFT Technologies, Inc.
Montgomery, AL
USA
100.0
kUSD
349
0
72.
Hodgson Mining Limited
Lusaka
Zambia
74.0
kZMW
929
999
73.
J.S. Redpath Corporation
Sparks
USA
100.0
kEUR
11,497
3,593
74.
J.S. Redpath Holdings Inc.
North Bay
Canada
100.0
kEUR
155,105
49,618
75.
J.S. Redpath Limited
North Bay
Canada
100.0
kEUR
100,502
26,277
76.
J.S. Redpath Peru SAC
Lima
Peru
99.5
kEUR
-4
- 12
77.
Les Entreprises Mineres Redpath Ltee.
Quebec
Canada
100.0
kEUR
54
0
78.
OrthoScan Inc.
Delaware
USA
100.0
kUSD
9,600
- 308
79.
P.T Redpath Indonesia
Jakarta
Indonesia
100.0
kEUR
5,164
3,182
80.
Redpath (Australia) Holdings Pty Limited
Eagle Farm
Australia
100.0
kEUR
3,236
3,620
81.
Redpath Argentina Construcciones S.A.
Buenos Aires
Argentina
100.0
kEUR
3,626
4,756
82.
Redpath Australia Pty Limited
Eagle Farm
Australia
100.0
kEUR
9,384
- 3,942
83.
Redpath Chilena Construcciones Y Cia. Limitada
- 1,650
36
84.
Redpath Contract Services Pty Ltd ***
85.
Redpath Ecuador Construcciones S.A.
86.
Redpath Guatemala Construcciones S.A.
87.
Redpath KR LLC
88.
Redpath Mexicana Construcciones SA de CV
89.
Redpath Mining (Botswana) (Pty) Ltd.
90.
Redpath Mining (S.A.) (Pty.) Ltd.
91.
Redpath Mining Zambia Limited
Kitwe
92.
Redpath Mongolia LLC
Ulaanbaatar
93.
Redpath Philippines Inc.
Makati
94.
Redpath PNG Limited
95.
Redpath Venezolana C.A.
96.
Rücker CR spol.s.r.o.
97.
98.
Santiago
Chile
99.5
kEUR
Eagle Farm
Australia
100.0
kCAD
Quito
Ecuador
100.0
kEUR
11
- 115
Guatemala
Guatemala
100.0
kEUR
- 19
-7
Bishkek
Kirgizstan
100.0
kEUR
470
-6
Mexico City
Mexico
100.0
kEUR
3
-5
Gaborone
Botswana
74.0
kEUR
1,149
1,403
Johannesburg
South
Africa
74.0
kEUR
- 6,765
- 939,285
Zambia
84.4
kEUR
3
0
Mongolia
100.0
kEUR
2,557
5,677
Philippines
100.0
kEUR
0
0
Port Moresby
Papua
New
Guinea
100.0
kEUR
903
157
El Callao
Venezuela
99.0
kEUR
0
- 69
Mladá Boleslav
Czech
Republic
100,0 *
kCZK
17,757
- 4,607
Rucker Design S.R.L.
Iasi
Romania
100,0 *
kRON
- 1,709
- 483
Rücker do Brasil Ltda.
Sao Bernardo
Brazil
100,0 *
kBRL
535
- 2,376
99.
Rücker France SARL
100.
Rücker Ges.m.b.H.
101.
Rücker GmbH
Blagnac
France
100,0 *
kEUR
1,063
52
Grambach b. Graz
Austria
100,0 *
kEUR
196
- 89
Arbon
Switzerland
100,0 *
kCHF
2,847
845
Page 91
Share in %
No.
Company
City
Country
Mladá Boleslav
direct
indirect
Currency
Czech
Republic
100,0 *
kCZK
Equity
as per
Net
Result
Dec
2013
2013
102.
Rücker Immobilien spol. s r.o
103.
Rücker Italia S.R.L.
Torino
Italy
100,0 *
kEUR
459
46
104.
Rücker Lypsa S.L.
Barcelona
Spain
100,0 *
kEUR
11,514
2,657
105.
Rücker Nord AB
Göteborg
Sweden
100,0 *
kSEK
47,037
490
106.
Rücker Polska Sp.z.o.o.
Warszawa
Poland
100,0 *
kPLN
4,305
316
107.
Rücker SR spol.s.r.o.
Bratislava
Slovakia
100,0 *
kEUR
- 316
- 1,304
108.
Rücker Vehicle Design (Shanghai) Co.,Ltd.
Shanghai
China
51,0 *
kCNY
1,902
1,789
109.
Rücker-Sier GIE
Blagnac
France
100.0
kEUR
199
676
110.
Servicios FFT Mexico, S.A. de CV
Puebla
Mexico
100,0 *
kMXN
1,824
422
111.
Silver AeroSpace B.V.
Haarlem
Netherlands
100,0 *
kEUR
- 1,452
21
112.
Star Design of Alabama Inc.
Birmingham
USA
100,0 *
kUSD
- 45
- 15
113.
Star Design S.A. de C.V.
México
Mexico
100.0
kMXN
64
0
114.
Triple S Insurance Company Limited
Bridgetown
Barbados
100.0
kEUR
7,668
1,646
115.
UnderAus Group Holdings Pty Limited
Eagle Farm
Australia
100.0
kEUR
2,486
0
116.
W.O.M. WORLD OF MEDICINE ASIA Ltd.
Hong Kong
China
100.0
kEUR
- 42
- 44
117.
W.O.M. World Of Medicine USA, Inc.
Orlando
USA
100,0 *
kEUR
474
526
118.
Wolfgang Rücker Ges.m.b.H.
Wien
Austria
100.0
kEUR
560
- 57
119.
Ziehm Imaging Finnland (OY)
Hinthaara
Finland
100.0
kEUR
655
227
120.
Ziehm Imaging Inc.
Orlando
USA
100.0
kEUR
- 12,083
73
121.
Ziehm Imaging Srl a Socio Unico (SRL)
Reggio Nell' Emilia
Italy
100.0
kEUR
67
- 53
122.
Ziehm Medical (Shanghai) Co. Ltd.
Shanghai
China
kCNY
11,158
4,258
123.
Ziehm Medical LLC
Reno Nev.
USA
100.0
kUSD
41,475
0
124.
Ziehm Medical Properties Inc
Reno Nev.
USA
100.0
kUSD
7,591
- 67
100.0
34,020
3,453
2. Non-Consolidated Companies
a) Domestic Companies
125.
BML Verwaltungs- und Beteiligungs GmbH i. L.
Hamburg
Germany
100.0
kEUR
20
0
126.
EDAG Production Solutions Verwaltungs GmbH
Fulda
Germany
100.0
kEUR
24
0
127.
EDAG-Beteiligung GmbH
Fulda
Germany
100.0
kEUR
43
0
128.
Flexible Fertigungstechnik GmbH
Mücke
Germany
100.0
kEUR
49
5
129.
OptoSic GmbH i.L.
Baden-Baden
Germany
100.0
kEUR
i.L.
i.L.
130.
REFORM Maschinenfabrik Adolf Rabenseifner
Beteiligungs GmbH***
Fulda
Germany
100.0
kEUR
57
3
Municipiul Campulung
Romania
100.0
kRON
- 96
2
Györ
Hungary
100.0
kEUR
44
47
b) Foreign companies
131.
Alternative Agro Energy Estate S.R.L.
132.
BFFT Hungary Kft.
133.
DC Aviation Flight Crew Ltd.
St. Julian
Malta
100.0
kEUR
71
59
134.
DC Aviation Holding Ltd.
St. Julian
Malta
100.0
kEUR
191
- 10
135.
DC Aviation Ltd.
St. Julian
Malta
100.0
kEUR
17
3
136.
Deilmann-Haniel RUS OOO
Berezniki
Russia
100
kEUR
446
68
135.
EDAG Investments LLC
Detroit
USA
100
kUSD
0
0
Glattbrugg
Switzerland
100.0
kCHF
227
77
Haarlem
The
Netherlands
80,0 *
kEUR
0
0
Glattbrugg
Switzerland
100.0
kEUR
92
- 58
Kaluga
Russia
100,0 *
kRUB
- 6,472
- 7,919
Bromont
Canada
100,0 *
kCAD
1
0
Cambridge
Great
Britain
99,9 *
kGBP
50
0
- 239
136.
Heli-Link Helikopter AG
137.
Incat Aircraft Design B.V.
138.
Jet-Link AG
139.
Rücker GmbH
140.
Ruecker Aerospatiale Canada Inc. /
Ruecker Aerospace Canada Inc.**
141.
Star Design (UK) Ltd.
142.
Ziehm Imaging Sarl
Villejust
France
100.0
kEUR
- 435
143.
Ziehm Imaging Singapore Pte. Ltd. (PTE)
Singapore
Singapore
100.0
kSGD
1,176
164
144.
Ziehm Medical Do Brasil
Sao Paulo
Brazil
100.0
kBRL
3
- 825
Page 92
Share in %
No.
Company
City
Country
Katowice
Sparks
direct
Equity
as per
Net Result
Dec
2013
2013
indirect
Currency
Poland
50.0
kEUR
- 15
- 65
USA
65.0
kEUR
346
2,124
Regina
Canada
50.0
kEUR
6,415
2,635
Dubai
United
Arab
Emirates
49.0
kEUR
1,795
- 194
Hamburg
Germany
49,0 *
kEUR
- 66
41
Boca Raton
USA
23.0
kUSD
II. Joint Ventures
145.
Deilmann Thyssen Schachtbau Sp. z.o.o.
146.
RFK Blue Lake Tunnelers Partnership
2. Non-Consolidated Companies
147.
148.
Associated Mining Construction Inc. **
DC Aviation Al Futtaim LLC **
III. Investments in associates
a) Domestic Companies
149.
Rücker CT-Engineering GmbH
150.
*
**
***
****
*****
ROGO Group LLC***
full shares, not calculated
not consolidated due to immateriality
no current financial statements available; dormant company; prior year numbers if available
no current financial statements available; prior year numbers
shortened financial year as at 30 December 2013
Page 93
The following auditor’s report (Bestätigungsvermerk) has been issued in accordance with Section 322
German Commercial Code (Handelsgesetzbuch) on the consolidated financial statements and group
management report (Konzernlagebericht) of ATON GmbH as of and for the business year from January 1
to December 31, 2013.
The English version of the report is a translation of the German version of the report. The German text is
authoritative.
Auditor’s Report
We have audited the consolidated financial statements prepared by ATON GmbH, Munich, comprising
the income statement, the statement of comprehensive income, the statement of financial position, the
statement of changes in equity, the cash flow statement and the notes to the consolidated financial
statements, together with the group management report for the business year from January 1 to
December 31, 2013. The preparation of the consolidated financial statements and the group
management report in accordance with the IFRSs, as adopted by the EU, and the additional requirements
of German commercial law pursuant to § (Article) 315a Abs. (paragraph) 1 HGB ("Handelsgesetzbuch":
German Commercial Code) is the responsibility of the parent Company's Managing Directors. Our
responsibility is to express an opinion on the consolidated financial statements and on the group
management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with § 317 HGB and
German generally accepted standards for the audit of financial statements promulgated by the Institut
der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we
plan and perform the audit such that misstatements materially affecting the presentation of the net
assets, financial position and results of operations in the consolidated financial statements in accordance
with the applicable financial reporting framework and in the group management report are detected with
reasonable assurance. Knowledge of the business activities and the economic and legal environment of
the Group and expectations as to possible misstatements are taken into account in the determination of
audit procedures. The effectiveness of the accounting-related internal control system and the evidence
supporting the disclosures in the consolidated financial statements and the group management report are
examined primarily on a test basis within the framework of the audit. The audit includes assessing the
annual financial statements of those entities included in consolidation, the determination of the entities
to be included in consolidation, the accounting and consolidation principles used and significant
estimates made by the Company's Managing Directors, as well as evaluating the overall presentation of
the consolidated financial statements and the group management report. We believe that our audit
provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion based on the findings of our audit, the consolidated financial statements comply with the
IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to
§ 315a Abs. 1 HGB and give a true and fair view of the net assets, financial position and results of
operations of the Group in accordance with these requirements. The group management report is
consistent with the consolidated financial statements and as a whole provides a suitable view of the
Group's position and suitably presents the opportunities and risks of future development.
Munich, April 23, 2014
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Petra Justenhoven
Wirtschaftsprüferin
(German Public Auditor)
Norbert Klütsch
Wirtschaftsprüfer
(German Public Auditor)

Audited annual financial report 2013

Transcription

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