ta Triumph-Adler ag Nuremberg Report for the third quarter and the by gyvwpsjkko


									ta t r i u m ph -a d l er ag                     Q ua rt er ly r ep o rt 3/0 9

                               ta Triumph-Adler ag
                                Report for
                            the third quarter
                        and the first nine months
                                of the 2009
                              financial year
2   g r o u p m a n ag e m e n t r e p o r t

     Group Management Report of
     TA Triumph-Adler Aktiengesellschaft,
     for the third quarter and the first nine months
     of the 2009 financial year
                                                                                                   g r o u p m a n ag e m e n t r e p o r t   3

The business and its environment                            Although it would appear that signs indicating slight

ta Triumph-Adler ag is positioned as the specialist for     improvements of the macroeconomic situation are

efficiency in the Document Business.                        emerging, and despite the slight rise in shipments, as
                                                            well as specific successes such as the winning of the
We analyze the processes our customers use to prepare,
                                                            University Clinic of Saarbrücken as a customer: there is
utilize, process, and archive documents. We provide
                                                            still no upturn in our business. For instance, revenue
them with advice and consulting that helps them to
                                                            in the third quarter of 2009 was a further €1.9 million
discover ways of structuring these processes more ef-
                                                            lower than in the already weak second quarter. Both we
ficiently, and we prepare related organizational and
                                                            and our competitors continue to note that customers
management consulting concepts to help them achieve
                                                            and interested parties are exhibiting a previously un-
this aim. We deliver extensive complete solutions on a
                                                            witnessed reticence to purchase. Significantly fewer
one-stop basis for our customers that also allow them
                                                            clients than usual and as planned are prepared to invest
to implement these efficiency improvements. This
                                                            in new Document Business solutions, and to enter into
comprehensive approach extends to financing, and
                                                            longer-term contractual commitments.
ongoing maintenance and management. As a conse-
quence, the tying in of customers via lease agreements      The targets we had announced to date for the current

and their loyalization plays a special role in our busi-    and coming financial years were based on the assump-

ness model.                                                 tion of economic recovery from the mid-year stage. In
                                                            light of the continued weakness in both the market and
We operate our business in two segments: in the Distri-
                                                            sales, we are now assuming that the 2009 financial year
bution area, we sell machines such as photocopying
                                                            will also come to a conclusion with a significant oper-
machines, printers, scanners, fax devices, and multi-
                                                            ating loss. For this reason, we have decided to also sub-
function products to specialist dealers both in Germa-
                                                            ject our 2010 targets to a revision, particularly also be-
ny and abroad. In Germany, we utilize our utax band
                                                            cause the “Aufbruch 2010!” growth program can no
exclusively for this business. In Direct Sales, we di-
                                                            longer be implemented in the form that we had planned
rectly address medium-sized companies. In Germany,
                                                            to date, given the situation of both the macroeconomy
our regional companies operate direct sales under the
                                                            and the company.
ta Triumph-Adler brand.
                                                            We started as early as the first quarter to adjust costs at
The number of machines that are contractually tied to
                                                            all levels to the weak progress of sales. These measures
customers (machines in field [MIF]) is a key indicator of
                                                            are insufficient, however, due to developments on the
our market position. We have raised this figure during
                                                            revenue side. For this reason, and in parallel with the
the course of the first nine months by 3.3 % from around
                                                            discontinuation of the “Aufbruch 2010!” growth pro-
197,100 as of December 31, 2008 to around 203,600 as of
                                                            gram, we have started to set up a new comprehensive
September 30, 2009.
                                                            program that takes these developments into account. It
                                                            is intended to allow us as rapidly as possible to operate
                                                            our business profitably again as a result of further cost
                                                            reductions, also at the reduced sales level. At the same
                                                            time, however, it is also intended to deliver new growth
                                                            impulses. In this respect, there has been no change to
                                                            our fundamental sales targets of further expanding the
                                                            color and printer areas. The same applies for our activi-
4   g r o u p m a n ag e m e n t r e p o r t

                 ties in the DIDO area. We must nevertheless adjust the       IAS 8 adjustments
                 path we take to reach these objectives to reflect the        As part of Kyocera Mita Corporation’s acquisition of the
                 changes in circumstances. A further intensification of       majority of ta Triumph-Adler ag, ta Triumph-Adler
                 qualification, training, motivation, and even more con-      ag will be fully consolidated by its parent company,
                 sistent management, particularly of our sales staff,         which employs US GAAP accounting standards. As a
                 will play a key role in this respect. The development of     consequence, besides its IFRS consolidated financial
                 new sales approaches represents a further area we are        statements, ta Triumph-Adler ag must also prepare
                 working on. Along with this, we identify growth po-          Group reporting on the basis of US GAAP. The account-
                 tentials in our service area, an area in which we are        ing treatment of certain leases was adjusted retrospec-
                 meanwhile working at the highest level of professional-      tively in the IFRS financial statements, particularly in
                 ism, particularly following the introduction of a new        order to minimize the expense related to the transition
                 steering system. Here, too, we have launched an addi-        from IFRS to US GAAP. This mainly relates to reclassifi-
                 tional program with which we intend to address these         cation of agreements with end-customers previously
                 potentials.                                                  treated as operating leases, which are now classified as

                 Our brand will also continue to represent a key founda-      finance leases. For this reason, the comparable figures

                 tion: in 2009, for the second consecutive year, we won       for the prior-year period provided in this report diverge

                 the coveted “red dot” award for our 2008 annual report,      from those previously reported. This particularly af-

                 and the consistent further development of our brand          fects revenue, the materials expense and depreciation/

                 image. This time, the award was even in the “red dot:        amortization, as well as the cash flow statement and

                 best of the best” category for the highest level of design   the measurement of tangible fixed assets, receivables

                 quality.                                                     and lease liabilities. A detailed presentation of the
                                                                              changes can be found in the 2008 annual report.
                 Our close cooperation with our parent company Kyo-
                 cera Mita shows that our service offering under the          In the course of the repositioning of our Group ac-

                 motto “Efficiency in the Document Business” will re-         counting to meet particular requirements on the part

                 main the appropriate basis for future growth. It is also     of the parent company, we have subjected consolida-

                 reflec-ted in the fact that we have now also concluded a     tion processes, among other things, to a detailed revi-

                 cooperation agreement with an additional provider.           sion in the third quarter. As a consequence, IAS 8 ne-

                 The agreed cooperation venture with XEROX Corpora-           cessitated that corrections totaling around €2.5 million

                 tion rounds out our product range of machines wher-          be applied with regard to the financial years 2001, 2003

                 ever Kyocera Mita does not offer equipment due to its        and 2005. These result from adjustments to debt con-

                 model strategy.                                              solidation, to the elimination of intra-group profits,
                                                                              and adjustments arising from the recognition of ex-
                                                                              change-rate differences when realizing the final con-
                                                                              solidation of the PPE Group. The prior-year figures have
                                                                              already been adjusted correspondingly to the relevant
                                                                              balance sheet items in this set of interim financial
                                                                              statements. These have no impact on the previous- and
                                                                              current-year income statement.
                                                                                                    g r o u p m a n ag e m e n t r e p o r t   5

Earnings                                                      Gross profit
Machine shipments rose by around 13 % in the third            The materials expense fell by 16.6 % compared with the
quarter compared with the second quarter of 2009, to          third quarter of the previous year, to €43.6 million. The
more than 17,500 machines, but are consequently still         slight rise compared with the second quarter of 2009
around 11 % below the same quarter of the previous            reflects the high level of shipments, simultaneously ac-
year. The share of printers rose for the first time to more   companied by a higher proportion of printers. The
than 50 % of total shipments. The trend in revenue fails      gross profit margin (calculated as revenue minus mate-
to reflect the rise in shipments. This is because printers    rials expense, expressed as a percentage of revenue)
are sold at a significantly lower price level than copiers,   amounted to 35.9 %. The gross profit margin stood at
which is why growth in the share of this product seg-         36.2 % for the first nine months, slightly above the pre-
ment is reflected in relatively weaker sales growth. By       vious year's level. Gross profit of €88.1 million was 18 %
contrast, a high volume of pages are produced on print-       below the €107.4 million generated in the prior-year pe-
ers, so that an expansion of printers within the con-         riod. In the third quarter, gross profit amounted to
tractual base will generate correspondingly higher fu-        €29.9 million, compared with €33.5 million during the
ture income on a page-price basis. The proprietary            same period last year.
brand share within Direct Sales rose to 84.7 %.
Group revenue of €214.8 million in the first nine
                                                              Personnel expenditure totaled €51.6 million in the first
months of the 2009 financial year was 21.7 % lower than
                                                              nine months (previous year period: €53.2 million). This
in the comparable period of the previous year, when
                                                              reflects initial effects from the first-quarter capacity
€274.2 million was generated. We achieved sales reve-
                                                              adjustments; we anticipate a further decline in the per-
nue of €68.0 million in the third quarter of 2009, a 2.7 %
                                                              sonnel expense over subsequent quarters. Extraordi-
decline compared with the second quarter. Turnover
                                                              nary expenses of around €1.4 million were incurred for
amounted to €82.0 million in the comparable period of
                                                              settlements and other expenses in this connection.
the previous year.
                                                              Depreciation/amortization arising from normal busi-
Our pre-tax result was negative in the first nine months
                                                              ness operations amounted to €2.9 million, following
of 2009, and amounted to minus €8.4 million. A pre-
                                                              €3.4 million in the prior-year period. Operating ex-
tax profit of €6.9 million arose in the comparable quar-
                                                              penses in the first nine months of the year rose 3.2 % to
ter of the previous year. Besides the marked decline in
                                                              €33.8 million. This amount contains extraordinary ex-
revenue, this mainly reflects, to an extent of €2.6 mil-
                                                              penses of around €0.6 million in connection with the
lion, extraordinary expenses for the measures to adjust
                                                              redemption of the syndicated loan, as well as consul-
to economic trends, and for the repayment of the syn-
                                                              tancy costs of €0.5 million.
dicated loan.

                                                              As a consequence, we achieved earnings before interest
                                                              and tax of minus €0.2 million in the first nine months
                                                              of the current financial year, following €15.9 million in
                                                              the same period of the previous year.
6   g r o u p m a n ag e m e n t r e p o r t

                 The net financial result improved only slightly during       The personnel expense remained largely constant in
                 the first nine months from minus €9.0 million in 2008        Distribution, while the other operating expense was
                 to minus €8.2 million in the current year. The net fi-       €0.7 million lower. This nevertheless only partially
                 nancial result includes the interest portion of the pen-     compensated for the lower revenue. At €2.8 million,
                 sion expense amounting to €5.3 million (previous year        Distribution generated segmental earnings (EBIT) that
                 period: €5.1 million).                                       were almost €1 million lower than in the prior-year pe-
                                                                              riod. As a consequence, the EBIT margin from the Dis-
                 Nine-month earnings                                          tribution business fell from 6.9 % in the previous year’s
                 The pre-tax loss amounted to minus €8.4 million. A           period to currently 6.4 %.
                 pre-tax profit of €6.9 million arose in the first nine
                                                                              The personnel expense within the Direct Sales business
                 months of 2008. The 2009 tax expense amounted to
                                                                              fell by €1.7 million compared with the first nine months
                 €0.3 million as of September 30. This gives rise to a loss
                                                                              of the previous year due to the ongoing cost-cutting
                 for the period of minus €8.7 million. Following the tax
                                                                              measures. This segment generated a negative result of
                 expense of €4.2 million, a profit of €2.7 million was
                                                                              €0.3 million, mainly reflecting the disproportionate
                 generated in the first nine months of the previous year.
                                                                              decline in revenue. In the previous year, Direct Sales
                 The income statement must be supplemented by a con-
                                                                              still contributed earnings of €12.2 million, represent-
                 solidated statement of comprehensive income accord-
                                                                              ing an EBIT margin of 5.5 %.
                 ing to the version of IAS 1 that must now be applied.
                 This comprises items that were and are directly offset
                 with equity, and consequently represents an excerpt          Asset and financing positions
                 from the statement of changes in equity. In the third
                                                                              Notes to the cash flow statement
                 quarter, currency translation differences of +€0.1 mil-
                                                                              We registered a negative cash flow of €10.5 million in
                 lion and the change in the cash flow hedge of –€0.1 mil-
                                                                              the first nine months of 2009 due to the continued
                 lion contributed to comprehensive income.
                                                                              weakness of sales, and the resultant negative quarterly
                 Segmental reporting                                          earnings, as well as due to the reduction of tax provi-
                 Our Direct Sales achieved sales of €171.1 million during     sions. Cash and cash equivalents as of September 30,
                 the first nine months, 24.4 % less than in the prior-year    2009 were €11.4 million lower than as of the prior-year
                 period. At €43.7 million, our Distribution business          balance sheet date.
                 generated 18.6 % less revenue than in the first nine         Operating activities generated a cash outflow of €9.4
                 months of 2008.                                              million during the first nine months. We reported an
                 The gross profit margin was up in both segments on a         inflow of €10.1 million in the previous-year period.
                 year-on-year periodic comparison, due to the dispro-         We reduced investment activities compared with the
                 portionately lower use of materials. It rose to 38.7 %       first nine months of the previous year – such activities
                 within Direct Sales (following 37.2% in the first nine       resulted in a cash outflow of only €2.0 million (previ-
                 months of 2008). The gross profit margin in Distribu-        ous year: €6.6 million). This amount in both years con-
                 tion was up from 21.4 % in the first nine months to          tains payments for acquisitions that were made.
                 26.3 % this year. Compared with the prior-year period,
                 this reflects, among other things, the currently greater
                 proportion of higher-margin consumable materials
                 and replacement parts.
                                                                                                    g r o u p m a n ag e m e n t r e p o r t   7

The outflow of cash from financing activities also fell     Equity
from €13.1 million in the first nine months of the previ-   As presented in detail in the 2008 annual report, we
ous year to €0.0 million. Besides ongoing financing ac-     de-recognized deferred tax assets relating to loss carry-
tivities, this amount particularly contains the entry of    forwards within the Group following Kyocera Mita’s ac-
the shareholder loan from Kyocera Mita that permitted       quisition of a majority stake in the company. When ad-
the redemption of the syndicated loan during the            justed for the retrospective corrections that have now
course of the second quarter of 2009. Kyocera Mita          been performed, this resulted in an increase in the bal-
Deutschland provided an additional loan in the third        ance sheet loss to €161.9 million as of December 31, 2008.
quarter. These items are mainly offset by cash outflows     The balance sheet loss rose further to minus €170.6 mil-
arising from the redemption of the syndicated loan,         lion as of September 30, 2009 as a result of the negative
ongoing interest payments, and the paying down of           nine-month earnings. Consolidated equity after de-
lease liabilities by €10 million.                           ducting the minority interest now amounts to minus

As a consequence, cash and cash equivalents fell from       €82.0 million, following minus €73.3 million at the end

€29.0 million on December 31, 2008 to €17.6 million on      of the last financial year.

September 30, 2009.
                                                            Provisions and liabilities

Assets                                                      At the end of April 2009, we fully redeemed the syndi-

As of September 30, 2009, total consolidated assets         cated loan entered into in summer 2007. The funds re-

amounted to €280.0 million, a €9.6 million reduction        quired for this were sourced from a shareholder loan

of the balance sheet total compared with the level on       provided by the majority shareholder Kyocera Mita. The

December 31, 2008 (€292.4 million).                         costs connected with the redemption were expensed
                                                            fully in the first quarter of this financial year.
The most important reasons for the reduction in the
balance sheet total are the decline in cash and cash        At €58.6 million, finance debt was a €17.6 million high-

equivalents, as well as lease receivables that were ap-     er than as of the balance sheet date.

proximately €10 million lower. This is offset by the        Particular items included in this finance debt are the
continued high level of inventories. At €66.6 million,      shareholder loan from Kyocera Mita (€20.0 million) and
they were €9.4 million higher than at the previous          Kyocera Mita Deutschland (€15.0 million). The share of
year’s balance sheet date due to the weaker than antici-    bank borrowings was reduced considerably by the pay-
pated trend in revenue, and because the ordering cycles     ing down of the syndicated loan, and now amounts to
established with the main supplier Kyocera Mita are         only €2.7 million. By contrast, finance lease liabilities
relatively long. They were nevertheless reduced by €5.4     as of September 30, 2009 were approximately €10 mil-
million compared with June 30, 2009. One continued          lion less than the €89.5 million as of December 31, 2008.
objective of our working capital management policy is       Other current liabilities (predominantly trade paya-
to aim for a further major reduction of capital tied up     bles) also fell over the course of the first nine months by
in current assets.                                          €5.0 million to currently amount to €84.2 million.

                                                            Pension provisions fell by around €1.8 million to a
                                                            present total of €123.4 million compared with Decem-
                                                            ber 31, 2008.
8   g r o u p m a n ag e m e n t r e p o r t

                 Staff members                                             Revenue will not exceed the €300 million level in the
                 A total of 1,275 employees were active in the companies   current financial year. For this reason, we are also an-
                 of the ta Triumph-Adler Group as of the September 30,     ticipating a significant operating loss. We will issue
                 2009 reporting date (September 30, 2008: 1,364; Decem-    new targets for 2010 and beyond at an appropriate junc-
                 ber 31, 2008: 1,334).                                     ture. The requisite planning processes – including
                                                                           those for the subsequent years – have already com-
                 Related parties                                           menced, and will be particularly affected by the meas-
                 A similar purchase volume to that described in the        ures related to the new program that have yet to be de-
                 notes to the 2008 consolidated accounts was realized      termined. In this connection, the timing of the Euro-
                 in the first nine months of the year with Kyocera Mita,   pean strategy, which will be implemented jointly with
                 the ta Triumph-Adler Group’s primary supplier. Sig-       Kyocera Mita, must also be adjusted. The targets re-
                 nificant transactions with related parties in the sense   main the same in terms of content.
                 of § 37w Paragraph 4 of the Securities Trading Act
                                                                           The continuation of unsatisfactory business trends will
                 (WpHG) did not occur in the reporting period.
                                                                           likely require that the carrying values of some of our

                 Events subsequent to the reporting date                   subsidiaries be written down in the parent company

                 There were no events of particular significance between   balance sheet at the end of the year. This would result

                 the conclusion of the quarter on September 30, 2009       in significant losses in the parent company’s single-

                 and the preparation of this report on October 24, 2009.   entity financial statements, and to a corresponding
                                                                           reduction of equity. From the current perspective, how-
                 Outlook                                                   ever, similar effects on the goodwill valuations con-
                 The prospects for our sector remain poor despite the      tained in the consolidated financial statements are not
                 first signs of an economic recovery setting in. As al-    expected.
                 ready mentioned, we have discontinued our “Aufbruch
                 2010!” program due to the weak trend in sales, and the    Assurance of the legal representatives

                 losses that have already been incurred. We are in the     To the best of our knowledge, and in accordance with

                 process of setting up a new program. We are now focus-    the applicable reporting principles for interim finan-

                 ing on a balanced relationship between cutting costs      cial reporting, the interim financial statements as of

                 and growth, primarily the further adjustment of costs     September 30, 2009 give a true and fair view of the as-

                 to reflect sales trends, and the strengthening of our     sets, liabilities, financial position, and profit or loss of

                 sales operation through an extensive qualification pro-   the Group, and the interim Group management report

                 gram. We are working at the same time to improve          includes a fair review of the development and perform-

                 gross margins at our regional companies.                  ance of the business and the position of the Group, to-
                                                                           gether with the description of the principal opportuni-
                                                                           ties and risks associated with the expected development
                                                                           of the Group in the remainder of the financial year.

                                                                           Nuremberg, October 26, 2009

                                                                           Robert Feldmeier

                                                                           Dr. Bernd Köhler

                                                                           Takuma Kimura
9   C o n s o l i d i dat e d i n C o m e stat e m e n t

                 CoNsolididATed iNCoMe sTATeMeNT
                                                                                           01.07.-30.09.              01.07.-30.09. 01.01.-30.09.              01.01.-30.09.
                                                                                                   2009 y-on-y-change         2008          2009 y-on-y-change         2008
                                                                                                   € mn          in %         € mn          € mn          in %         € mn

                 Revenue                                                                          68.0	          –17.1	           82.0		       214.8	           –21.7	         274.2

                 Change in work-in-progress / other own work capitalized                           0.0                              0.0           0.0                             0.0

                 other operating income incl. income from
                 associated companies and participations                                           3.0           –21.1              3.8          10.3           –25.4           13.8

                 Cost of materials                                                                43.6           –16.6            52.3         137.0            –24.1          180.6

                 Gross profit	                                                                    27.4	          –18.2	           33.5		         88.1	          –18.0	         107.4

                 personnel expenses                                                               17.2             –5.0           18.1           51.6             –3.0          53.2

                 other operating expenses                                                         10.1            –15.1           11.9           33.8             –3.2           34.9

                 amotization and depreciation                                                      1.0            –16.7             1.2           2.9            –14.7            3.4

                 EBIT      		                                                                     –0.9              n.a.	           2.3		        –0.2              n.a.	        15.9

                 Financial result                                                                 –2.7             12.9           –3.1           –8.2              8.9          –9.0

                 EBT       	                                                                      –3.6	        > –100.0	          –0.8		         –8.4              n.a.	          6.9

                 income and other taxes                                                           –0.1           –96.6            –2.9           –0.3             92.9          –4.2

                 Net result for the period	                                                       –3.7	             0.0	          –3.7		         –8.7              n.a.	          2.7

                     of which attributable to parent company shareholders                         –3.7                            –3.7           –8.7                             2.7

                     of which attributable to minority interests                                   0.0                              0.0           0.0                             0.0

                 earnings per share (diluted and non-diluted) from continuing operations
                 attributable to parent company shareholders (in €)                             –0.07                            –0.07         –0.16                            0.05

                 CoNsolidATed sTATeMeNT of CoMpReheNsive iNCoMe

                                                                                           01.07.-30.09.                    01.07.-30.09. 01.01.-30.09.                   01.01.-30.09.
                                                                                                   2009    y-on-y-change            2008          2009    y-on-y-change           2008
                                                                                                   € mn             in %            € mn          € mn             in %           € mn

                 Net result for the period                                                        –3.7	             0.0	          –3.7	          –8.7              n.a.	          2.7

                 Change in exchange-rate difference                                                0.1               n.a.           0.0           0.1            –66.7            0.3

                 Cash flow hedge                                                                	–0.1              50.0           –0.2           –0.1              n.a.           0.1

                 Changes reported directly in equity                                               0.0	         	100.0	           –0.2	           0.0	         –100.0	            0.4

                 Comprehensive income/loss	                                                       –3.7	            	5.1	          –3.9	          –8.7              n.a.	          3.1
                                                                          c o n s o l i dat e d stat e m e n t o f ca s h f lo w s   10

CoNsolidATed sTATeMeNT of CAsh flows

(in € mn)                                                                         01.01.-30.09.          01.01.-30.09.
                                                                                          2009                   2008

Net profit/loss for the year before taxes and minorities	     	   	   	                  –8.6	                   6.7

depreciation/amortization of fixed assets                                                 2.9                    3.4

Change in pensions and provisions                                                        –1.8                   –1.9

income tax paid                                                                          –3.0                    0.2

results from at-equity valuation                                                         	0.0                    0.0

Cash flow	                                      	             	   	   	                –10.5	                    8.4

Financial result                                                                          8.2                    9.0

result from disposal of assets                                                           –0.1                    0.0

Change in other provisions                                                                1.8                    4.8

Change in net current assets                                                             –8.8                 –12.5

Change in other balance sheet items                                                       0.0	                   0.4

I.   Outflow/Inflow of funds from ongoing business activity                              –9.4                   10.1

II. Outflow of funds from investment activity                                            –2.0	                  –6.6

III. Outflow of funds from financing activity                                             0.0	                –13.1

Net increase in cash and cash equivalents (I+II+III)                                   –11.4	                   –9.6

Cash and cash equivalents at start of year                                               29.0	                  27.5

Net increase in cash and cash equivalents                                              –11.4                    –9.6

Cash and cash equivalents at end of period                                               17.6                   17.9
11   C o n s o l i dat e d b a l a n C e s h e e t

                 CoNsolidATed bAlANCe sheeT

                 Assets                                 30.09.2009   31.12.2008
                                                           in € mn       in € mn

                 A. Non-current assets

                 i.   property, plant and equipment          6.4           7.1	

                 ii. intangible assets                      43.2         43.3

                 iii. Shares in associated companies         0.2           0.2

                 iV. other financial investments             0.0           0.2

                 V. receivables from finance leasing        65.8          61.4

                 Vi. other non-current receivables           2.6           2.7

                 Vi. deferred taxes                          7.8           7.8

                 Total non-current assets                  126.0        122.7

                 B. Current assets

                 i.   inventories                           66.6          56.0	

                 ii. receivables from finance leasing       26.7         41.0

                 iii. other current receivables             42.8         43.4

                 iV. tax reimbursement claims                0.3           0.3

                 V. Cash and cash equivalents               17.6         29.0

                 Total current assets                      154.0        169.7

                 Total assets                              280.0        292.4
                                                                                                     C o n s o l i dat e d b a l a n C e s h e e t   12

liabilities                                                                                      30.09.2009              31.12.2008
                                                                                                        in €                    in €

A. Equity

Shareholder's equity                                                                     	

i.   Subscribed capital                                                                              80.3                     80.3

ii. Capital reserve                                                                                    8.4	                    8.4

iii. other reserves                                                                                  –0.1                     –0.1

iV. accumulated loss                                                                              –170.6                   –161.9

              	                                  	           	           	               	          –82.0	                  –73.3

minority interests' share in equity                                                                    0.0                     0.0

Total equity	                                	           	           	           	           	      –82.0	                   –73.3

B. Non-current liabilities

i.   provisions for pensions and similar obligations                                                113.8                   115.6

ii. other provisions                                                                                   0.2	                    0.4

iii. Finance debt                                                                                    39.2                     20.7

iV. liabilities from finance leasing                                                                 56.4	                    61.2

V. other liabilities                                                                                   0.0                     1.4

Vi. deferred tax                                                                                       0.0                     0.0

Total non-current liabilities	         	             	   	       	           	       	              209.6	                  199.3

C. Current liabilities

i.   provisions for pensions and similar obligations                                                   9.6                     9.6

ii. tax liabilities                                                                                    2.0	                    4.8

iii. other provisions                                                                                 14.2	                   14.2

iV. Finance debt                                                                                      19.4	                   20.3

V. liabilities from finance leasing                                                                   23.0	                   28.3

Vi. other liabilities	                           	           	           	               	           84.2	                    89.2

Total current liabilities	             	             	   	       	           	       	              152.4	                  166.4

Total liabilities                                                                                   380.0                   292.4
13   S e g m e n t i n f o r m at i o n

                 seGMeNT iNfoRMATioN by CoRpoRATe divisioNs*
                 (in € mn)                                                        Distribution                              Direct sales*                               Group
                                                              01.01.-30.09.             01.01.-30.09.       01.01.-30.09.           01.01.-30.09.       01.01.-30.09.      01.01.-30.09.
                                                                      2009                      2008                2009                    2008                2009               2008

                 Revenue                                             43.7	                    53.7	              171.1	                  220.5	              214.8	              274.2	

                 other segment income                                 1.3                       2.8                 9.0                    11.0                10.3               13.8

                  Cost of materials	                                 32.2	                    42.2               104.8                   138.4               137.0               180.6

                  personnel expense                                   4.5                       4.4                47.1                    48.8                51.6               53.2

                  other operating expense	                            5.3	                      6.0                28.5                    28.9                33.8               34.9

                  amortization and depreciation                       0.2                       0.2                 2.7                     3.2                 2.9                3.4

                  EBIT       	                                        2.8	                      3.7	               –3.0	                   12.2	               –0.2	              15.9	

                      of-which one-off effects                        0.0                       0.0                –2.6                    –2.4                –2.6               –2.4

                  Financial result                                                                                                                             –8.2               –9.0

                  taxes                                                                                                                                        –0.3               –4.1

                  minorities                                                  	                         	                   	                       	           0.0               –0.1

                  deferred taxes                                                                                                                                0.0                0.0

                  Group earnings                                                            	                    	                  	            –8.7	               2.7	
                  * due to mergers within the group as well as corporate restructuring in the course of the first nine months of the 2008 financial year two group companies
                     are now reported in the directs Sales Segment, which were included in the distribution segment in the first nine months of 2008. previous year figures were
                     adjusted accordingly in order to match the current reporting.
                                                                                                           c o n s o l i dat e d stat e m e n t o f c h a n g es i n e q u i t y   14

                    Distribution                               Direct sales*                               Group
01.07.-30.09.              01.07.-30.09.       01.07.-30.09.           01.07.-30.09.       01.07.-30.09.      01.07.-30.09.
        2009                       2008                2009                    2008                2009               2008

       13.6	                     15.9	                54.4	                  66.1	                68.0	              82.0

        0.2                        0.5                 2.8                     3.3                 3.0                 3.8

        9.7	                     12.2                 33.9                   40.1                 43.6               52.3

        1.5                        1.4                15.7                   16.7                 17.2               18.1

        1.6	                       2.0                 8.5                     9.9                10.1               11.9

        0.1                        0.0                 0.9                     1.2                 1.0                 1.2

        0.9	                       0.8	               –1.8	                    1.5	               –0.9	                2.3

                	                                     –0.7	                   –1.4                –0.7               –1.4

                                                                                                  –2.7               –3.1

                                                                                                  –0.1               –2.8

                                                                                                   0.0               –0.1

                                                                                                   0.0                 0.0

                                           	                   	                       	          –3.7	              –3.7
15   c o n s o l i dat e d stat e m e n t o f c h a n g es i n e q u i t y

                 CoNsolidATed sTATeMeNT of ChANGes iN equiTy
                 (in € mn)                                                   Subscribed          Capital           Other       Accumulated       Shareholders'       Minority      Total
                                                                                 capital        reserve         reserves              loss              equity         share

                 Status as of 01.01.2008                             	           80.3	            8.4	            –0.3	          –142.6	              –54.2	            0.7	     –53.5

                 Correction for IAS 8                                	                     		              		     	0.2	             –2.5	               –2.3	           0.0	      –2.3

                 Status as of 01.01.2008 corrected                   	           80.3	            8.4	            –0.1	          –145.1	              –56.5	            0.7	     –55.8

                 Net income/loss                                     	                     	               	       0.4	              2.7	                3.1	           0.0	       3.1

                 disbursements to minority interests                                       	               	               	                 	                   	    –0.6        –0.6

                 Changes in the scope of consolidation                                                                                                                  0.0        0.0

                 Status as of 30.09.2008	                            	           80.3	            8.4	             0.3	          –142.4	              –53.4	            0.1			   –53.3

                 Status as of 01.01.2009                             	           80.3	            8.4	            –0.3	          –159.4	              –71.0	            0.0	     –71.0

                 Correction for IAS 8                                	                     		              		     	0.2	             –2.5	               –2.3	           0.0	      –2.3

                 Status as of 01.01.2009 corrected                   	           80.3	            8.4	            –0.1	          –161.9	              –73.3	            0.0	     –73.3

                 Net income/loss                                     	             0.0	           0.0	             0.0	             –8.7	               –8.7	           0.0	      –8.7

                 disbursements to minority interests                                       	               	               	                 	                   	      0.0        0.0

                 Changes in the scope of consolidation                                                                                                                  0.0        0.0

                 Status as of 30.09.2009	                            	           80.3	            8.4	            –0.1	          –170.6	              –82.0	            0.0			   –82.0
                                                                                                                       n ot es   16

Notes                                                       (IFRIC/SIC) have been observed. All prior-year period
                                                            figures that have been referred to have been calculated
                                                            according to the same principles. All International Ac-
This interim financial report has been prepared accord-     counting Standards / International Financial Reporting
ing to the relevant regulations of the German Securi-       Standards (IAS/IFRS) whose application is mandatory
ties Trading Act (WpHG), and the stock exchange rules       as of September 30, 2009, have been observed in these
and regulations of the Frankfurt Securities Exchange.       interim financial statements. In addition, IFRS 3 re-
The regulations of both of these sets of rules have been    vised, whose application is mandatory for business
satisfied cumulatively. The quarterly financial state-      years commencing after July 1, 2009, has found early
ments as of September 30, 2009, presented pursuant to       application.
§ 37w Paragraph 30 of the German Securities Trading
                                                            This report should be read in connection with our 2008
Act (WpHG), and the related interim management re-
                                                            annual report.
port, have been neither subjected to an auditor’s review
nor audited in line with § 317 of the German Commer-        No significant changes have occurred with respect to

cial Code (HGB).                                            the contingencies compared with December 31, 2008.
                                                            Contingent liabilities currently total a maximum of
This report contains forward-looking statements that
                                                            €3.4 million. These mainly result from the diminished
are based on assumptions and estimates made by the
                                                            likelihood that provisions relating to copyright fees
management of ta Triumph-Adler Group. Even if the
                                                            will be utilized.
management of the company is of the view that these
assumptions and estimates are appropriate, future ac-       The principles of consolidation have also not changed

tual developments and future actual events may di-          compared with the December 31, 2008 reporting date.

verge significantly from these assumptions and esti-        Besides those events mentioned in the management re-
mates due to various factors. These factors may include,    port, no key events have occurred up until October 26,
by way of example, changes in the macroeconomic sit-        2009 that require reporting.
uation, exchange rates, interest rates, as well as chang-
es in both the market and the competitive environment
as the result of technological change. Changes may also     Notes relating to treasury shares and subscription
result from a modification of the business strategy, or     rights
through the purchase or sale of companies. ta Tri-          The following situation prevailed as of September 30,
umph-Adler ag provides no guarantee, and accepts no         2009 relating to treasury shares and subscription
liability, if future developments, and results achieved     rights:
in the future, do not accord with the assumptions and
                                                            Please refer to our 2008 annual report with reference to
estimates expressed in this report. It accepts no obliga-
                                                            convertible bonds issued in the years 1997 to 1999. Con-
tion to update the forward-looking statements.
                                                            vertible bonds from the 1999/2009 tranche that were
This interim report was prepared according to Interna-      still outstanding recently were repurchased as of June
tional Accounting Standards/ International Financial        30, 2009. As a result, ta Triumph-Adler ag no longer
Reporting Standards (IAS/IFRS). The interpretations of      has any outstanding convertible bonds. All conversion
the International Financial Reporting Interpretation        rights have lapsed.
Committee/ Standing Interpretation Committee
                                                            Please also refer to our 2008 annual report for further
                                                            details concerning the Long-Term Incentive Program of
                                                            September 13, 2007. No changes have since arisen.

                                                            The company holds no treasury shares as of September
                                                            30, 2009.
17   n ot es

          Dates for 2009                                           Securities disclosures
          November 10, 2009
                                                                   Securities identification
          Participation at the German Equity Forum (Deutsches      number                      749500
          Eigenkapitalforum), Frankfurt am Main
                                                                   ISIN                        DE0007495004

                                                                   Stock exchange
                                                                   abbreviation                TWN, TNWG.DE
          Dates for 2010
                                                                   Frankfurt Stock             Official Trading, Prime
          March 31, 2010
                                                                   Exchange                    Standard
          Publication of the single-entity and consolidated
          financial statements of ta Triumph-Adler ag for the      Indices                     Prime All Share Index
          2009 financial year                                                                  Classic All Share Index
                                                                                               Industrial Sector Index
          Balance sheet date of the abbreviated financial year,
          January 1 to March 31, 2010

          July 27, 2010

          General Meeting of Shareholders of ta Triumph-           Contact information
         Adler ag, Nuremberg
                                                                   Your contact for further information and
          July 30, 2010
          Publication of the interim report on the first quarter   ta Triumph-Adler ag
          of the 2010/11 financial year                            Investor Relation
                                                                   Dr. Joachim Fleïng,
          October 30, 2010
                                                                   Suedwestpark 23
          Publication of the interim report on the second quar-
                                                                   90449 Nuremberg
          ter and first six months of the 2010/11 financial year
                                                                   Telefon +49 911.68 98-499
                                                                   Telefax +49 911.68 98-204

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