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A KR D E KRD EA GA A G w w w. D E K R A .E K Rm . c o m w w w. D c o A finAnciAl REPoRt 2009 finAnciAl REPoRt 2009 Our perfOrmance Our perfOrmance D AG DEKRA EKRA AG w n K s t R . 15 H A n DH AE RD w E R K s t R . 15 D–7 st6 t G utt D – 7 0 5 6 5 0 5 u 5t s tA Rt G A Rt E o 9. 4 9. 7 61 8 P H o nP H+ 4n E7+11. 7 8 11. 70 61 0 x 4 9. 7 61 8 12 fA x fA + 4 9. 7+11. 7 8 11. 72 961 2 9 12 COnTEnTs 1 COnTEnTs DEKRA is one of the world’s leading providers of expert ser vices, with around 2 Foreword 22,000 employees in over 50 countries dedicated to ensuring safety, quality and GROuP MAnAGEMEnT 3 Business Development and Economic Environment REPORT 3 Group Structure and Business Activities environmental protection. As a wholly owned subsidiary of DEKRA e.V., DEKRA AG 4 Corporate Governance, Goals, Strategy is responsible for the Group’s operational activities. Its broad and innovative service 7 Business Environment portfolio is delivered by three business units: DEKRA Automotive, DEKRA Industrial 7 Economic Conditions within the Industries 9 Business Development and DEKRA Personnel. 9 Group 9 DEKRA Automotive 11 DEKRA Industrial DEKRA coped well with the international economic and financial crisis, with our 11 DEKRA Personnel strategic focus on growth markets proving beneficial. Group sales and income before 12 Overall Statement by Management 12 Research and Development taxes again increased. The DEKRA network was extended and new activities added. 13 Quality Management Our most important asset is the trust placed in us by our customers and business 14 Internal Monitoring System and Internal Audit partners. Our expertise will allow us to continue playing a significant role in the 14 Environmental Protection and Sustainability 15 Personnel Report global market for innovative expert and quality services. 17 Financial Position and Performance 17 Performance 18 Financial Position 19 Composition of Assets, Equity and Liabilities 19 Summary Review of Financial Position and Performance 20 Subsequent Events 20 Risk Report 2 – 23 K E Y D ATA D E K R A A G IN MILLION EUROS 2008 2009 22 Forecast Report Total sales 1,595.8 1,710.0 Income before taxes 99.9 101.7 Return on sales in % 6.3 6.0 COnsOlIDATED FInAnCIAl 25 Consolidated Statement of Comprehensive Income Employees (as at Dec. 31) 20,121 21,925 26 Consolidated Statement of Financial Position sTATEMEnTs 28 Consolidated Statement of Changes in Equity 30 Consolidated Statement of Cash Flows 32 Notes to the Consolidated Financial Statements 79 Audit Opinion 80 Report of the Supervisory Board 25 – 80 2 FOREwORD GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T A N D E C O N OM IC E N V I R O N M E N T 3 DEKRA AG GROuP MAnAGEMEnT REPORT FOR FIsCAl YEAR 2009 FOREwORD OF ThE ChAIRMAn OF ThE MAnAGEMEnT BOARD the world’s major markets, in Europe, Africa, America BUSINESS DEVELOpMENT AND Automotive Services include the service lines and Asia. Cross-border and cross-sector centres of ECONOMIC ENVIRONMENT Vehicle Testing, Expertise, Used Car Management, competence ensure the distribution of know-how and Homologation and Type Approvals, Consulting and innovation within our service lines, as well as customer Group Structure and Business Activities Mystery Shopping and Claims Services. Industrial orientation throughout the world. Safety, quality and sustainability Services cover Machinery and Plant Safety, Energy By perfectly coordinating all of our efforts, the around the world and Process Industries, Health, Safety and Environ- Group has been able to successfully conclude fiscal DEKRA AG Group offers impartial, expert services ment (HSE), Buildings and Facilities, Product Testing year 2009 with revenue of 1,170.0 million euros despite throughout the world offering safety, quality and sustain- and Certification and Systems Certification. Personnel widespread economic turbulence. This is an increase of ability in the interaction between man and technology, Services comprise the Qualification, Temporary Work 114.2 euros million on the prior year. The pre-tax profit the environment and mobility. In all, 186 subsidiaries and Out- and Newplacement service lines. rose by 1.9 percent to 101.7 million euros. Return on sales and holdings operate under the umbrella of DEKRA DEKRA AG is active in all of the world’s major fell slightly by 0.3 percentage points to 6.0 percent. AG, based in Stuttgart. DEKRA AG is wholly owned by markets, in Europe, Africa, America and Asia, with When examining our three business units inde- DEKRA e.V., Stuttgart. a strong focus on Europe. Cross-border and cross- pendently, it becomes clear that the global economic DEKRA is currently ranked third internationally sector centres of competence ensure the efficient crisis was unable to put a dent in our development. among expert organisations, and is the market leader distribution of know-how and innovation within the DEKRA Automotive achieved growth in revenue of in Europe. The operative business is grouped into service lines, as well as customer proximity through- 8.1 percent, exceeding the one-billion-euro threshold. the business units Automotive Services, Industrial out the world. DEKRA Industrial’s revenue rose 11.4 percent to Services and Personnel Services. The activities of 379.2 million euros. Only the Temporary Work service these units are managed, coordinated and monitored line suffered any negative consequences. Significant by DEKRA AG. revenue gains by the Qualification service line were, however, able to almost completely offset the losses S t e fa n Kö l b l Chairman of the Management Board incurred in Temporary Work. At 305.3 million euros, s E R V I C E s P O RT F O l I O the DEKRA Personnel business unit’s revenue remained D E K R A e .V. / D E K R A A G largely unchanged on the prior year. automotive ServiceS induStrial ServiceS PerSonnel ServiceS The generally very satisfactory development of DEKRA confirms the correctness of our strategy. Vehicle Testing Buildings and Facilities Qualification We will continue to expand our business units while Dear business partners, keeping a tight rein on costs. We will expand through Expertise Machinery and plant Safety Temporary Work Dear readers, organic growth and acquisitions, tap into new lines of Used Car Management Health, Safety and Environment (HSE) Out- and Newplacement business and play a decisive role in the consolidation The industry for expert services has seen consistent of the industry. growth throughout the world. DEKRA has been follow- Homologation and Type Approvals Energy and process Industries ing a dynamic strategy of growth for decades. We are Best regards, Consulting and Mystery Shopping Systems Certification focusing on expanding the traditional automotive business and adding new, innovative fields of activity. Claims Services product Testing and Certification The liberalisation of industrial certification markets in Europe and other continents in particular offers DEKRA additional, attractive potential for further growth. Our broad spectrum of personnel services is a unique selling Stefan Kölbl point for our portfolio. Today, DEKRA is active in all of Chairman of the Management Board 4 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T A N D E C O N OM IC E N V I R O N M E N T 5 DEKRA Automotive: DEKRA is the global market Significant changes to personnel were made The DEKRA mission We have clear goals and strategies. We allow leader in the automotive testing and appraisal business. within the Group. The presidential committee We have combined our corporate goals into our mission room for initiative and entrepreneurship. This involves The European Union constitutes the core market. Other of DEKRA e.V. and the supervisory board of statement for DEKRA. This is the common foundation accountability and profit participation. Our Company companies are active in the Americas, Africa and China. DEKRA AG reappointed the management boards of for all of our actions, and creates the conditions for employs modern and efficient tools and optimised As DEKRA has continued to expand internationally, DEKRA e.V. and DEKRA AG at their meetings held the ideal balance between individual freedom and the processes. Brazil has become the second most important non- on December 16, 2009. With effect as of January 1, necessary central coordination. The principles are German market after France. In some markets, franchise 2010, Stefan Kölbl was made chairman of the man- guided by the aspiration to make our Company and Innovation: We are innovative. We recognise future systems have been established alongside the Group’s agement boards of DEKRA e.V. and DEKRA AG. our services even more convincing for customers and developments at an early stage. We then play an active own companies. He succeeds Dr. h.c. Klaus Schmidt, who retired business partners alike. role in shaping events, and come up with solutions for from these positions on December 1, 2009 for health the benefit of our customers. This safeguards DEKRA’s DEKRA Industrial: Industrial testing forms part of reasons. Roland Gerdon was confirmed as a member Vision: We are an independent service provider that is long-term appeal and success. the Company’s core business, and is expanding rapidly. of the management boards of DEKRA e.V. and a global leader for tasks in the public and private sector. Our Company maintains a culture of knowledge DEKRA is well established in Europe and pushing for DEKRA AG. Mr. Gerdon remains responsible for Our expertise ensures quality and safety in the interac- and communication. It promotes creativity and life- the position of market leader. We are active in strategic HR policy, as well as the IT and financial strategy of tion between man, technology and the environment. long learning. Its innovative strength makes it willing growth markets abroad, and are further developing our the entire Company. Since January 1, 2010, the new We direct our business energies towards provid- to take risks, and to provide the resources necessary. position. members of the management board of DEKRA AG ing high-quality and innovative services that benefit are Clemens Klinke, Head of DEKRA Automotive, both our customers and society at large. Customer-focus: Our customers and their needs are at DEKRA Personnel: Integrated personnel services Mark Thomä, Head of DEKRA Industrial, and the heart of everything we do. Because the success of round off the technical services, particularly in Europe. Jörg Mannsperger, Head of DEKRA Personnel. The Growth: Our Company is growing. We build on our our Company depends on customer satisfaction. DEKRA Akademie Group is one of the largest inde- automotive business, which until the end of 2009 market position by increasing the tangible benefit for Close, trusting relationships and a continuous pendent private educational institutions in Germany. operated independently in Germany and the rest of our customers and employees in the long term. presence are fundamental components of our customer- The services offered are also increasingly international the world, has been brought under the common Our growth allows us to raise our level of innova- focus. in nature, and constantly being expanded. management of the Automotive Services business tion and investment, which in turn makes us more Our Company focuses on customers by offering unit since the beginning of 2010. competitive and able to grow even more. This makes individual services based on comprehensive solutions. Corporate Governance, Goals, Strategy DEKRA has been consistently following a strat- us the perfect partner for customers of all sizes. Transparent structures and consistent egy of growth for decades, and now ranks as a world- We achieve growth by optimising our existing Employee-focus: Our employees are the most important corporate policy class, internationally active company. The traditional services and developing innovative new ones. We driving force behind our Company. The realisation of DEKRA’s success is based on transparent structures automotive business was targeted for growth, and exploit existing markets and tap into new ones. Our our mission requires a focus on employees. Because the and a clear corporate strategy. The Group as a whole is further innovative fields of activity added. The liber- own activities are supported by partnerships and social and professional skills, motivation and creativity, headed by DEKRA e.V., based in Stuttgart. DEKRA AG alisation of industrial certification markets in Europe collaborations. innovation and commitment of our employees are serves as a management hub in Stuttgart with global and other continents in particular offers DEKRA indispensable. responsibility for the operating subsidiaries. It presides potential for growth. The expert services sector has Commercial success: To us, commercial success means Our focus on our employees is revealed by our over the Automotive Services, Industrial Services and seen consistent growth throughout the world. turning a profit. This keeps all of our options open. culture of open communication, and our efforts to ensure Personnel Services business units. These are respon- Our goal is clear: All business units are to We invest the fruits of our success in the future of our the training and qualification of our employees. sible for and coordinate the activities of their respective expand while keeping a tight rein on costs. DEKRA’s Company. Participation in the success of the Company and national and international subsidiaries and holdings. growth is both internally driven and brought about encouraging individuals to take ownership are particu- The management boards of DEKRA e.V. and by acquisitions, with new fields of business system- larly important in this regard. DEKRA AG are closely integrated, with a certain de- atically tapped, which will play a decisive role in the gree of overlap in their composition. The management consolidation of the industry. board of DEKRA AG bears sole responsibility for the management of the Company. The board is appointed, monitored and advised by the supervisory board. 6 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T A N D E C O N OM IC E N V I R O N M E N T 7 International expansion: We take full advantage of our The Compliance Guidelines, introduced in 2007, Business Environment opportunities on the international market. Our leading give DEKRA internationally binding guidelines and Recession in the industrialized world G D p G R O W T H R AT E S I N E U R O p E ( E U 2 7 ) position in Europe gives rise to additional benefits for principles that require ethical and legally compliant The global economy suffered from the effects of reces- IN % our customers, and enables us to help create suitable conduct from all employees. The dedicated DEKRA sion in North America, Europe and parts of Asia in the framework conditions. Compliance Organisation helps all employees with reporting period. After severe losses in the winter of International expansion boosts our growth the clarification of specific cases. There are also bind- 2008/2009, the situation stabilised somewhat in the 0.9 and helps secure and enlarge our market position. It ing guidelines on data protection. second half of 2009. This was due in no small part to – 4.2 enables us to support international clients, and adds the many government economic and labour market value through our global portfolio. The outstanding Controlling system: DEKRA has taken the stimulus packages, as well as ongoing growth in China reputation enjoyed by DEKRA is the result. requirements of the capital markets as a basis and and India. The main beneficiary was the automotive To this end, we have created a culture that views revised its financial key performance indicators and industry. At the other end of the scale, high-export 2008 2009 Europe as its domestic market. Our personnel policy objectives in the course of harmonising its financial industries such as mechanical engineering were hard- promotes and requires international competence on reporting with International Financial Reporting est hit. Demand for industrial and HR services in par- the part of our employees. Networks and technological Standards (IFRSs). By consistently pursuing the goals ticular fell across Europe as a result. tools ensure the requisite knowledge sharing. of the DEKRA mission statement and in light of the The growth rate of global economic output The average number of people in employment associated continuous improvement in revenue and as recorded by the International Monetary Fund in the course of the year came to 40.2 million Integration: Cooperation brings strength. By marshal- earnings, we aim to boost cash flow and company (IMF) was – 0.8%, down from + 3.4% in 2008 and according to DESTATIS (prior year: 40.3 million). ling all of its forces, DEKRA creates more opportunities value in the long term. + 5.2% in 2007. According to EUROSTAT, GDP in 73.0% of these were in the services sector (prior year: for growth and success. Our customers benefit from The regular monitoring of these performance the euro zone fell 4.1% following growth of 0.8% 72.5%). The Employment Agency’s job index (BA-X) our holistic solutions. indicators, supported by deviation analyses based in the prior year and 2.6% in 2007. The entire Euro- reflects the seasonally adjusted development of de- on the budget and the forecast, form the basis for pean Union (EU27) saw a drop of 4.2% (prior year: mand for workers in Germany. At 129 points, it was Strict code of conduct swiftly introducing countermeasures when targets growth of 0.9%). 21 points lower in December than in the prior year, Integrity, reliability and impartiality on the part of all are not met. We also monitor our aim of adding DEKRA’s two most important markets, Germany reflecting the poor state of the economic climate. employees are crucial to DEKRA’s success as an impar- long-term value to the Company with a range of and France, were hit hard by the recession. According Inflation was kept low by the recession. Accord- tial organisation of experts. DEKRA’s reputation and other control instruments. to DESTATIS, Germany’s GDP fell 5.0% adjusting ing to EUROSTAT, prices rose by an average of 1.0% ability to compete on the market, and our impartiality Risk management system: The risk manage- for inflation (prior year: growth of 1.3%). Growth throughout the EU in the course of the year (prior when rendering our services and public duties, are ment system is a key component of corporate gover- for 2007 had been as high as 2.5%. This is an eco- year: 3.7%). The German Federal Statistics Office strongly dependent on the conduct of each and every nance. As an international corporation, DEKRA is nomic collapse without parallel in the history of the [“Statistisches Bundesamt”] calculated a 0.2% increase individual. Clients, customers and business partners charged with the task of identifying and assessing Federal Republic of Germany. France’s GDP fell 2.2%, in consumer prices (prior year: 2.8%). can reasonably expect that all DEKRA employees, that risks at an early stage in order to allow countermea- following growth of 0.4% in the prior year. is staff-level employees, middle managers, executives sures to be implemented. The slowdown had a knock-on effect on labour Economic Conditions within the Industries and board members, will work to high ethical standards, We continuously and systematically monitor markets. The average level of unemployment in One-off effects of state subsidies can be relied upon to fulfil their duties and conduct both external and internal risks faced by all business Germany, DEKRA’s largest market, rose by 155,000 to As an international service provider, DEKRA operates themselves properly as fair-minded business partners. units and subsidiaries. These are analysed through- 3.423 million unemployed, according to the German primarily in the commercial and technical sector, spe- out the Group with regard to the likelihood of their Federal Employment Agency [“Bundesagentur für cifically through its Automotive Services and Industrial occurrence and the potential damage. Arbeit”]. This growth was kept in check in particular Services business units. These industries have a significant by the use of labour policy instruments such as influence on the development of our personnel services. reduced working hours. Companies were also taking Europe’s industrial output was hit hard by the the opportunity to terminate limited-term contracts. downturn in the reporting period. EUROSTAT’s The temporary employment market shrank accord- average industrial output index fell 5.0% for the euro ingly, reducing business for Personnel Services. zone (prior year: – 1.7%) and 4.9% for the EU27 coun- tries (prior year: – 1.6%). The commodities, consumer and capital goods sectors were hardest hit. 8 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T A N D E C O N OM IC E N V I R O N M E N T BU SI N E S S D EV E L O P M E N T G R O u P M A n A G E M E n T R E P O R T 9 DEKRA Automotive: The automotive sector is a key DEKRA Personnel: Personnel services are heavily DEKRA also continued its course of investment industry for many industrialised countries. In addition dependent on the economy, particularly in the field and expansion in the field of industrial services. The pA S S E N G E R V E H I C L E S A L E S I N E U R O p E to already suffering from excess capacity, the massive of temporary work. In addition, state measures aimed Industrial Services business unit did however face a IN MILLION UNITS collapse in demand in winter 2008/2009 exacerbated at the labour market are a major factor in the field of series of daunting challenges as a result of the eco- the situation for manufacturers. National stimulus pack- training. There are no reliable performance indicators nomic downturn, particularly in France. This second 14.7 ages were therefore introduced in Europe and North 14.5 available in Europe for the training, temporary work, cornerstone of the Group nevertheless achieved America. State subsidies are aimed at rejuvenating out- and newplacement markets. respectable growth. The acquisition of KEMA Quality passenger car stocks and encouraging demand for According to estimates by the BZA [“Bundes- B.V. boosted the standing of the entire unit in the environmentally friendly cars. According to the VDA verband Zeitarbeit”: German Temporary Workers’ Asia-Pacific region. [“Verband der Automobilindustrie”: German Associa- Association], the market for industrial temporary Personnel Services constitutes the third strategic tion of the Automotive Industry], global passenger car 2008 2009 workers in Germany comprised around 800,000 cornerstone of our portfolio. DEKRA Akademie GmbH sales fell a mere 3% in the year as a whole. The Chinese workers in August 2008, and fell to 500,000 by May achieved its best result ever in the Qualification service market in particular, which saw a genuine boom in sales 2009. By the end of 2009 this figure had recovered to line. DEKRA Personnel was able to stabilise its business in 2009, prevented global sales of passenger cars from around 600,000. in the course of the year, following a rally in the market declining further still. one for DEKRA Automotive. In Brazil, sales of light for the Temporary Work service line in the last two Nevertheless, according to information pro- vehicles (passenger cars and light trucks) rose almost quarters. vided by ACEA (European Automobile Manufac- 13% to more than 3 million vehicles according to BUSINESS DEVELOpMENT turer’s Association) the number of new passenger car the VDA. DEKRA Automotive registrations in Europe still fell. In Europe as a whole, The development of our service lines Expertise Group Pulling ahead of the competition sales volumes fell 1.6% to 14.5 million passenger cars. and Claims Services are influenced by road accident Impetus and expansion despite economic crisis In its core automotive business, DEKRA is pulling ahead In western Europe (EU15 and EFTA), 13.6 million trends and other insurance cases. According to The DEKRA AG Group was able to build on its market of the competition at a national and international level. passenger cars sold constituted a 0.5% increase on estimates by the BASt [“Bundesanstalt für Straßen- position in 2009 despite the global economic uncer- The global revenue of Automotive Services exceeded the prior year. In the new EU member states, on the wesen”: German Federal Institute for Road Research], tainty. Although the growth of global revenue slowed one billion euros for the first time in the reporting other hand, new registrations fell 26.6%. the number of road traffic accidents recorded by somewhat, it was still in the respectable single percent- period. The commercial vehicles sector also suffered the police in Germany remained almost unchanged age figures. Pre-tax profit rose in comparison to 2008, In Germany it was able to reinforce its position from the crisis. Sales of lightweight commercial ve- in 2009 at around 2.29 million. According to the despite the challenging economic conditions. With as market leader and increase revenue despite the hicles, the largest segment, fell 30.3% across Europe. GDV [“Gesamtverband der Versicherungswirtschaft”: 20,000 employees, the Group’s headcount is approxi- challenging conditions on the market. In addition In Germany, passenger car manufacturers and German Insurance Association], motor vehicle in- mately equal to the prior-year level. to a significant increase in headcount, this was aided importers experienced a boom due to the environ- surance payouts came to around 20 billion euros. Our own strength enabled us to implement by close collaboration with the automotive industry. mental / scrappage scheme. According to the KBA several major acquisitions. These include the acqui- In addition to our own 500 branches, DEKRA [“Kraftfahrt-Bundesamt”: German Federal Motor DEKRA Industrial: The industrial inspection business sition of the Brazilian VOLCHI Group, including Automobil GmbH (our largest subsidiary) already Transport Authority], a total of 4.2 million motor is extremely heterogeneous. It ranges from plant safety the companies LINCES LTDA., CHECKAUTO conducts vehicle testing at around 40,000 dealer- vehicles (+ 16.2%) were registered in 2009. New to certification. There are no standardised statistical LTDA. and IDENTICAR LTDA., as well as the Dutch ships. Together with our innovative portfolio of passenger car registrations rose 23.2% to 3.8 million definitions or indicators. Boston Consulting Group’s KEMA Quality B.V., an international specialist in services, this served to increase our market share. units. In contrast, the market for lorries and tractors calculations place the global market volume at around product testing and management certification. We are responding to the increasing challenges shrank by more than a quarter. 60 billion euros. The international network was further expanded, faced in connection with the growing complexity In France, DEKRA’s second most important All service lines are largely shielded from including in South Africa. The revenue generated of vehicles by raising expenditure on training and core market after Germany and where a scrappage sudden changes in the economy, particularly in by Automotive Services outside of Germany grew quality assurance. The proportion of on-board scheme has been in place since the end of 2008, pas- the fields of buildings and facilities. The respective disproportionately fast in comparison to the prior diagnostic (OBD) tests is steadily increasing. The senger car sales rose by around 11% over the course markets are characterised by intense competition year. Within Germany, the business unit was able to state scrappage scheme for aging passenger cars has of the year. The Brazilian market is also an important for new and existing customers, which is fought by reinforce its position as one-stop service provider in some regards had a negative impact on the testing means of pricing. and continue to grow by adding further services. business. However, it is assumed that the explosion DEKRA is the clear global market leader in the field in new registrations in 2009 will merely result in the of expert automotive services. skewing of future revenue. 10 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T 11 Blanket coverage and solution-finding skills In the field of claims services, the Dutch exper- reinforce our market position in comparison to the tise specialist DEKRA Bartok B.V., acquired in 2008, SALES DEKRA AUTOMOTIVE SALES DEKRA INDUSTRIAL competition, including with regard to non-regulated and DEKRA Claims Services Group combined their WORLDWIDE IN MILLION EUROS WORLDWIDE IN MILLION EUROS services. In the expertise sector, a reduction in nat- know-how. They put together service packages for ural perils led to a drop in market volume. In addition, insurers in order to offer integrated expertise and 1,025 379 falling passenger car mileages have also impacted the 948 claims services to this important target group. 340 damage assessment business. Nevertheless, DEKRA recorded relatively stable business, and was able to DEKRA Industrial grow at the expense of smaller providers. We combat Lean structures for more effective units the high sensitivity of our customers to pricing The six service lines of the Industrial Services business changes with improved and innovative services. 2008 2009 unit were very successful overall. However, the industrial 2008 2009 Collaboration with manufacturers was further testing business in France stagnated for the first time in intensified in the field of homologation and type many years. A combination of caution on the part of approval. This is exemplified by our support for the clients and increasing competition meant that DEKRA development of fuel cell vehicles in the form of a DEKRA Automotive S.A. in France, the largest Industrial S.A. Group’s revenue remained unchanged management systems for major international clients. series of crash tests. The Consulting and Mystery non-German subsidiary, increased both its revenue on the prior year. DEKRA responded to this trend by The Company maintains testing laboratories in Shopping service line held its own against the com- and earnings despite the liberalisation of the condi- changing its organisation and structure. Our main goal Germany, the Netherlands, Italy, China, Japan and petition. This was another case where DEKRA’s posi- tions under which it operates. DEKRA now offers is to make our units more effective in order to become the US. tion as an international and highly networked service all automotive service lines in France. The franchise even more competitive in a highly competitive market. The KEMA Quality portfolio ideally supple- provider paid dividends. business in DEKRA’s other domestic market developed One important step in this direction was the combina- ments DEKRA Certification GmbH’s previous port- especially favourably, with percentage growth rates tion of the former NORISKO companies, as well as the folio, both in terms of content and geographically. Brazil second largest non-German market in double digits. DEKRA was also able to win a con- rebranding as a strong DEKRA Industrial in France. This gives rise to an internationally established At an international level also, DEKRA successfully con- tract with France's largest long-term vehicle rental Efficiency and resilience on the market have increased provider of product testing and registration of medical tinued its dynamic course of expansion. Vehicle testing, company in the field of used car management. through the more efficient use of sales and adminis- products. expertise, claims services and other expert services Activities outside of Europe were significantly trative resources. enabled the non-German companies to increase revenue increased. The Brazilian VOLCHI Group, acquired DEKRA pursued the same goal with the indus- DEKRA Personnel by double-figure percentages. In Europe, market leader- at the beginning of the year, is the leading specialist trial testing business in Germany. The new DEKRA Revenue at DEKRA Akademie soars ship in the fields of vehicle testing and expert services in its country for vehicle identification, theft analy- Industrial GmbH combines our main competencies, The Personnel Services business unit maintained its was maintained and further reinforced despite the sis and vehicle valuation. Brazil is DEKRA’s second particularly in the fields of machinery and plant safety, positive development with integrated HR services. relative weakness of some markets. largest automotive market, behind France. Expansion energy and process industries, health, safety and Percentage growth in DEKRA Akademie GmbH’s on the African continent also continued apace. environment as well as buildings and facilities. By revenue was in double digits. With more than 800 DEKRA Automotive Maroc S.A. expanded its own combining these services in one company, we are more salaried employees, over 2,500 freelance trainers and network of test workshops and franchises, and is the able to meet the needs of our customers and raise our 125 locations, DEKRA Akademie has become one of leading player in this market. standing on the market. the major independent, private educational institutions DEKRA began vehicle testing in South Africa The Industrial Services business unit continues in Germany. in 2009, which shows a lot of potential for growth. to grow. Key milestones in this process were the One highlight was the recognition of DEKRA Following the joint venture with the South African integration of the Finnish safety service provider Medienakademie as a university of applied sciences WesBank, the Company now maintains an extensive Polartest OY and the acquisition of the Dutch KEMA by the Berlin Senate. Those working in the media network of more than 40 state-of-the-art test work- Quality B.V., which tests and certifies electronic can now obtain internationally recognized bachelor's shops in the country that is playing host to the 2010 products and components, medical products and degrees from the new “DEKRA Hochschule Berlin”. football world cup. This makes DEKRA Akadamie a one-stop service provider, from short-term integration measures to higher education. 12 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T 13 The company Megamos Kft. was acquired in Our focus is on the segments of vehicle and making use of IT-based tools in the Personnel Ser- Hungary. Just two years after entering the market, traffic safety, technological know-how and efficiency vices business unit. The modular portfolio offered SALES DEKRA pERSONNEL DEKRA Akademie GmbH now covers the entire for the vehicle, logistics and insurance industries. by DEKRA Akademie GmbH at its p.r.o.f.i. inde- WORLDWIDE IN MILLION EUROS Hungarian market. Special attention was paid to the IT-based optimi- pendent learning centres has made a significant sation of processes and further development of stra- contribution to the success of the Company. 305 305 Temporary work more valued tegic issues in the fields of testing, expertise and used We maintain a close relationship between DEKRA Arbeit GmbH suffered heavily from the reces- car management. theory and practice in all aspects of our business. sion in 2009 with regard to its temporary work services, Above all, tools for testing electronically con- DEKRA collaborates with universities and customers. but is already beginning to recover. The end of the year trolled safety-relevant vehicle systems are of major Our experts take part in specialist conventions and saw a significant increase in order intake. According to importance. This requires that not only the technical, symposia. We also play an active role in international DEKRA’s estimates, the economic crisis has led many 2008 2009 but also the personnel-related conditions for qualified bodies via our representative offices in Berlin and companies to focus on temporary employment arrange- tests are in place. DEKRA is also actively involved in Brussels, in order to lobby for innovations in issues ments in the future. the further development of exhaust tests aimed at of relevance to us. For economic reasons, the number of locations reducing particulates. in Germany was reduced from 82 in the prior year Research and Development The DEKRA Technology Center was further Quality Management to its current level of 80, in order to improve cost Innovation for tomorrow’s markets expanded, with locations in Stuttgart (accident inves- Comprehensive monitoring of processes efficiency in the long term. The number of locations Technical expert services thrive on progress. This is the tigation), Neumünster (crash centre) and Klettwitz DEKRA’s quality management functions are aimed at outside of Germany rose from 18 to 23. Company only way for the DEKRA AG Group to survive on the (technology). The focus is on innovation that is geared consistently improving the efficiency and quality of policy is increasingly focussing on expanding markets and build on its position. This is aided by our to the customer. We are once again investing heavily our processes and services. It is organized both cen- activities in the field of Commercial & Engineering. systematic and comprehensive innovation management in the fields of exhaust testing and COP (Conformity trally and locally. The units that make up our Group The crisis has raised the number of qualified em- system. We are constantly developing new solutions that of Production) tests for vehicle manufacturers. Efforts have national and international quality management ployees on the market, allowing DEKRA to raise its are geared to the customer, and submitting proposals to add new competencies for alternative fuels and processes that are constantly monitored both externally standards. that are tailored to the market. In the reporting period, drive systems are coming along well and have been and by means of internal auditing systems. These QM we once again invested considerable amounts in devel- well accepted by the market. For example, DEKRA audits, that largely examine the technical and service Overall Statement by Management oping and expanding our portfolio of services in the is supporting the development of a fuel cell vehicle processes, are a key component of the internal moni- Bringing new impetus, expansion and profitability into fields of automotive, industry, safety, environmental by conducting a series of crash tests as well as a fire toring system (IMS) aimed at ensuring the quality of the DEKRA AG Group required that the Company’s protection and personnel. In addition to internal efforts test with filled hydrogen bottles. Close collaboration products and processes. goals be consistently pursued, both externally and to improve our service portfolio, acquisitions in the with industry is also aided by the French DEKRA Group companies within Germany that have internally. Additional important expansion was realized automotive and industrial business added further com- Test Center S.A. near Narbonne. In international certified or accredited quality management systems as planned in the reporting period. This included the petencies and accreditations. claims services, IT tools are constantly being devel- prepare annual assessments with the results of their international expansion of automotive services, and Our innovation management is based on con- oped in order to improve workflows. internal audits, and evaluate the state of their quality the reinforcement of our industrial testing business crete specifications and indicators. The development The expansion of the industrial testing business management systems and processes. These results are through targeted acquisitions. Integrated HR services of the IT infrastructure and IT-based market services is supported by the intensive development of new combined to form annual reports at Group level. also developed favourably. Internal processes were is of strategic importance. This helps us to gain and services and in-house IT tools. We also systematically The internal monitoring system IMS was further continuously improved and streamlined. By following retain customers. It also improves efficiency, helping move into new areas of expertise. In this way, we refined at Group level. It includes such aspects as its single-brand strategy, DEKRA improved its reputa- us keep a tight rein on costs. Solutions of this type increase the number of our accreditations and are compliance structure, QM structure and internal tion among customers in various industries. can be adapted to suit different regions and offered able to move into new markets. We are increasingly audit. The individual elements of the local monitoring internationally. Supranational and cross-disciplinary systems of the separate group entities were brought competence centres ensure a continual transfer of together and combined to form the IMS. The heart innovation. They also help us to integrate and apply of the monitoring system is the internal auditing the know-how gained from newly acquired compa- system. nies within the Group, throughout the world. 14 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T 15 One element used to identify and assess inter- Internal Monitoring System and Internal Audit DEKRA Automotive: Current projects in the field of With 451 direct employees, Brazil represents a respect- nal risks and monitor the compliance of internal Internal monitoring makes an important contribution environmental protection and sustainability include able personnel basis on the South American continent. processes is the process of control self assessment. to generating confidence among shareholders, custom- safety and emissions tests in connection with alterna- This number does not include employees in the fran- This was carried out in parallel with the risk manage- ers, suppliers, employees and the general public as tive drive systems. DEKRA’s studies on maximising chise network, making DEKRA’s coverage all the more ment survey in 2009, and resulted in a risk inventory. regards the management of enterprises. Internal mon- road traffic safety and accident prevention are also impressive. This lists and evaluates internal process risks and itoring forms part of DEKRA’s corporate governance, worthy of note. market risks, allowing risk-based audit planning. and help the management board raise the value of the International growth and integration The existing accreditations and official autho- Company and safeguard its future. The internal audit DEKRA Industrial: DEKRA offers expertise in the The international expansion drive of the Group presents risations (currently 236) are constantly being main- function constitutes a key element of the Company’s fields of sustainability management, workplace safety management and the personnel functions with great tained and added to. The acquisition of companies internal monitoring system. It supplements the other testing and environmental and energy efficiency mea- challenges. In addition to the Brazilian VOLCHI Group, has significantly raised the number of accreditations monitoring functions in place at the DEKRA AG Group surement. The EU Chemicals Regulation REACH poses the certifier KEMA Quality B.V. based in the Nether- and official authorisations. The acquisition of KEMA (controlling, quality management etc.) and supports great challenges for all industries. DEKRA assumes all lands was acquired in 2009. This represents DEKRA’s Quality B.V. in particular – an international product management by ensuring the objective and impartial tasks resulting from the directive for its customers. largest and most extensive acquisition since the acqui- certification company – contributed a great number supervision of the design and functionality of the inter- sition of the French NORISKO Group in 2005. Through- to the Group. nal monitoring system. DEKRA Personnel: Having trained personnel is a out the world, around 600 employees of the KEMA One other QM project at DEKRA worth men- Internal audit conducts impartial assessments of precondition for sustainable and safe business conduct Group were integrated into the DEKRA AG Group as tioning is the approaching accreditation for the first the Group’s processes in this regard, thus supporting that conserves resources. We help our customers find a result. Integration began directly after the signing of time in the field of automotive testing. Changes to the pursuit of the Group’s goals. This takes the form of qualified employees through recognised training the contract in the form of a presentation to employees the legal framework in this field require systematic the systematic assessment and optimisation of risk courses, private job brokerage and temporary work. in Arnheim, which was relayed by video conferencing adjustments. This was taken as an opportunity to management, the internal monitoring system and the to all of the companies in other countries. The next analyse the relevant processes and to streamline them general oversight processes. Personnel Report major step towards integration took the form of a days- with regard to customers and authorities, to redesign Internal audit helps make the processes that it Stability in the face of crisis long international meeting for the management of them and in so doing to improve efficiency. In this audits effective and efficient, and ensures that the The total number of people employed by the DEKRA DEKRA Certification GmbH and KEMA Quality B.V., context, a company-wide system of documentation individual companies operate within the relevant AG Group never fell below 20,000 despite the global held soon after the closing. Other steps are to follow. was developed in order to depict all processes, in- guidelines and standards. economic crisis. In fact, the 20,040 employees as of In addition to acquisition-related integration measures, crease transparency and ensure the standardized year-end even constituted an increase on the prior-year 2009 also saw an increase in longer-term overseas provision of Group specifications. Environmental Protection and Sustainability value. However, the annual average of 19,443 fell just assignments. In accordance with a fundamental decision, The increased requirements in terms of data DEKRA takes environmental, economic and social short of the prior-year figure of 20,008 due to reduced these employees are prepared by means of intercultural protection and IT security with regard to customer aspects into account at all times and for the long term. personnel requirements in the course of the year with training in order to better safeguard the goals associated data gave us cause to take specific action. Our sales As a leading international expert organisation, we are regard to temporary workers. The main impetus for the with the assignment. functions were informed about the new legal data active in various markets. Our business units play a development of the headcount came from the European Of course the DEKRA International Advance- protection requirements with regard to customer competent role in protecting people and the environ- market as well as Asia and South America. The overall ment Program, which brought together 12 employees data and advertising. In addition, a new website on ment, and raising awareness of sustainability issues. Our proportion of employees working outside of Germany from various countries and companies once again data protection procedures was set up in the intranet services and solutions in the field of health, safety and rose to around 35% (prior year: 31%). The acquisition in 2009, also helps us with our international integra- as a group-wide information platform. In the field environment are many-layered and forward-looking. of KEMA Quality B.V. and existing Bartok and claims tion efforts. of external IT services, our supplier contracts are Our tests, expertise, certificates and consulting services activities established the Netherlands as the third larg- continually monitored and, if necessary, adapted to give our customers new ideas for dealing with technol- est European market with a total of 722 employees, the changed provisions. ogy, materials and resources, as well as maximising their behind Germany with 13,052 and France with 4,187. safety. Of course, we also apply our knowledge internally at all levels of the Company. 16 GROuP MAnAGEMEnT REPORT BU SI N E S S D EV E L O P M E N T F I NA N C IA L P O SI T IO N A N D P E R F O R M A N C E G R O u P M A n A G E M E n T R E P O R T 17 For 2010, we plan to familiarise new executives Employees and Branding FINANCIAL pOSITION AND at the DEKRA Group with the central functions 2009 was a year of rebranding. The recognisability of pERFORMANCE GROUp SALES performed at the headquarters in Stuttgart in the a brand is becoming increasingly important in markets IN MILLION EUROS course of two-day visits. This will allow important filled with similar goods and services. The most im- Performance personal contacts to be established at an early stage portant rebranding was implemented mid-year in The consolidated financial statements of DEKRA AG in the interest of improving integration. It also allows France. NORISKO S.A. is now called DEKRA Industrial up to 2008 have been prepared in accordance with the 1,596 1,710 new managers to better categorize and understand S.A. However, changing a brand’s identity is much provisions of HGB [“Handelsgesetzbuch”: German processes and process requirements at a Group level. more than a formal act. Rather, the change must be Commercial Code] and AktG [“Aktiengesetz”: German lived by all managers and employees, and the new Stock Corporation Act”]. DEKRA AG prepared its Challenges brand identity embodied in dealings with third parties. consolidated financial statements in accordance with In order to make the processes in the industrial business In order to support this, employees were informed at the International Financial Reporting Standards 2008 2009 more efficient, reinforce sales activities and customer an early stage, involving the use of the internal media (IFRSs) for the first time as of December 31, 2009 support and realize cross-selling potential, DEKRA Test- available. There were also visits from “employee ambas- by exercising its option under Sec. 315 a (0.3) HGB. ing & Inspection GmbH, DEKRA Real Estate GmbH sadors” in Germany, as well as the broad one-on-one Section 2 of the notes to the consolidated financial and DEKRA Umwelt GmbH were combined in Germany provision of information by management at several statements contains comments on the application of The increase in the cost of materials was sharper to form DEKRA Industrial GmbH. Constructive coop- locations in the course of a two-week road show. These IFRSs for the first time. than the increase in revenue. The cost of materials eration with workforce representatives also allowed the activities were rounded off by the provision of informa- The Group concluded a successful fiscal 2009 for corporate acquisitions, the use of external per- remuneration and social benefits system to be overhauled tive welcome packages to all employees regarding the with revenue of 1,710.0 million euros. This consti- sonnel to cover spikes in capacity in the Industrial with no effect on costs, which has considerably alleviated rebranding. Other important rebranding exercises were tutes an increase of 114.2 million euros on the prior Services business unit and the use of external speak- the associated administration work. Employees were carried out at the VOLCHI Group in Brazil, at Polartest year, or relative growth of 7.2%. ers by DEKRA Akademie GmbH, Stuttgart contrib- informed of this new, market-based approach at their Oy in Finland and at the Bartok Group in the Nether- This growth was driven by increases in both uted significantly to this increase. The ratio of cost of respective locations by management at an early stage. lands. In these cases as well, the aforementioned or volumes and prices, as well as acquisitions and, to a materials to revenue increased to 12.7%, an increase We are confident that the implemented measures will similar workforce communication measures were imple- lesser extent, changes in the consolidated group. The of 1.7 percentage points. have a positive effect on earnings in 2010. A similar mented where useful. positive effect from corporate acquisitions in 2009 Personnel expenses rose 6.1%. The ratio of approach is being and has been implemented with regard The “www.bringdieweltinsicherheit.de” cam- contributed 36.7 million euros to the total growth personnel expenses to revenue of 59.8% for the fiscal to industrial activities in France. In addition to the com- paign was successfully launched in Germany in 2009. in revenue. The impact of the economic crisis on the year improved by 0.6 percentage points in com- bination of several companies, the elimination of an Specifically approaching target groups of interested development of revenue in the Temporary Work parison to the prior year. entire level of hierarchy has resulted in a much more parties and potential applicants has proved highly service line was almost entirely offset by increased Structural changes with regard to production flexible organisation. A 10% reduction in personnel, productive. The linking of the homepage with an revenue in the Training business unit. The scrappage workers in both the automotive and industrial busi- mainly in administration, has been initiated. Measures electronic application tool has increased the level of scheme had a braking effect on the growth of revenue ness had a positive effect on this ratio. This was off- that were introduced are scheduled for conclusion in professionalism in the processing and analysis of in the automotive business in the fiscal year. The set by the effects of the restructuring of the industrial spring 2010. In this case we also sought dialogue with applications. The platform also allows managers to economic crisis also affected the industrial business business begun in the fiscal year, as well the increase bodies representing the workforce at an early stage in directly access the current pool of applicants and gain by making customers less likely to award contracts, in contributions to the pension guarantee association order to find constructive solutions. an overview of the state of the application, as well as particularly in the construction industry. This effect in Germany. The increase in personnel expenses in the ability to search for certain skills. was partially offset by increased revenue in Germany the DEKRA Personnel business unit was below the as a result of the liberalisation of the testing market unit’s increase in revenue, with a positive effect on the for equipment subject to inspection. ratio of personnel expenses to revenue. The 31.8% increase in other operating income to 25.2 million euros is largely due to a currency translation gain on a loan extended to a Brazilian subsidiary. 18 GROuP MAnAGEMEnT REPORT F I NA N C IA L P O SI T IO N A N D P E R F O R M A N C E 19 Other operating expenses grew 11.1% in excess Financial Position The 11.1 million euros increase in cash and cash The 8.0% increase in non-current liabilities to of the growth in revenue, representing an increase Financial instruments equivalents, consisting of checks, cash in hand, cash 510.9 million euros is mainly due to the provisions in the ratio of expenses to revenue of 0.8 percentage The significant principles and goals of the DEKRA at banks and securities with an original term of less for pensions and similar obligations, as well as other points. Various process optimisation programs raised Group’s financial management are described in Section than three months, to 51.8 million euros also reflects non-current provisions. IT costs and also had an impact on consulting costs. 11 of the notes. the satisfactory development of business in 2009. The provisions for pensions and similar obliga- In addition, expenses were incurred by the Training tions rose 4.4% to 439.2 million euros. This increase business unit for the additional rental of rooms on Capital Expenditure Composition of Assets, Equity and Liabilities was in accordance with the scheduled development account of the increased volume of business. The volume of capital expenditure excluding business Total assets rose 10.1% from 1,008.2 million euros to of the respective pension plans. The interest rate of Total amortisation, depreciation and write- combinations came to 31.4 million euros in the fiscal 1,110.3 million euros in the past fiscal year. 5.5% for the main pension plans remained unchanged downs increased 32.4% as a result of corporate ac- year. Capital expenditure mainly concerned other The increase of 102.1 million euros on the assets on the prior year. The 58.4% increase in other non- quisitions in the fiscal year, as well as the full write-off equipment, furniture and fixtures, as well as franchises side of the statement of financial position is mainly current provisions to 36.0 million euros was heavily of an IT program in production. and software licenses. due to a 20.2% increase in non-current assets to influenced by the increase in phased retirement com- The financial result is dominated by income of At more than 50.0% of total investment, capital 680.1 million euros. mitments. Deferred income tax liabilities also rose. 25.9 million euros from the sale of an equity invest- expenditure focused on the Automotive Services The 45.0% increase in intangible assets to This increase is attributable to purchase price alloca- ment. Interest expenses fell in comparison to the prior business unit, specifically other equipment, furniture 258.6 million euros was largely due to acquisitions tions carried out in connection with corporate acqui- year on account of the low interest rate for the fiscal and fixtures. The Group’s total capital expenditure carried out in the course of the fiscal year. The 21.4% sitions effected in the fiscal year. year. This was offset by low levels of impairment on was essentially unchanged on the prior year. increase in other non-current assets to 106.8 million Current liabilities fell 4.3% to 352.8 million several investments and loans to non-consolidated As of the end of the reporting period, there euros was mainly attributable to an increase in euros. This was mainly caused by a drop in current subsidiaries. were no material capital commitments. reimbursement claims under IAS 19.104a in the form financial liabilities on account of the repayment of Pre-tax profit rose 1.9% to 101.7 million euros. of employer’s pension liability insurance. In addition, a bank loan. In contrast, increases in current provi- Return on sales, calculated in relation to income Liquidation analysis the mainly positive development of the volume of sions were mainly seen among personnel provisions. before taxes, fell 0.3 percentage points to 6.0%. The liquidity of the DEKRA Group in 2009 was heavily securities contributed to the 9.2% increase in other These are primarily provisions for restructuring in The Group tax rate fell 5.2 percentage points on influenced by business combinations. Ongoing high non-current financial assets to a total of 143.0 million the DEKRA Industrial business unit. the prior year to 22.8%. This reduction is mainly due levels of capital expenditure were once again financed euros. to the largely tax-free sale of an equity investment. without taking out loans. Current assets, which fell 2.7% to 430.2 mil- Summary Review of Financial Position At 104.3 million euros, cash flow from operating lion euros, saw a drop in securities within other and Performance activities reflects the satisfactory development of current financial assets. Funds freed up by means The development of the DEKRA Group’s results of business in the course of 2009. This fell 16.1% on the of the sale of securities were used for acquisitions operations in 2009 was satisfactory on the whole, already very good prior-year value of 124.2 million in 2009. At 4.5%, growth in trade receivables was despite the economic crisis and its effects on business euros. slower than in revenue. The maturity structure of in the affected service lines. The net assets and financial Cash flow from investing activities of 62.3 mil- these receivables has improved. position allow sufficient leeway for the Company to lion euros was heavily influenced by high levels of Equity rose by 80.0 million euros to 246.6 mil- pursue its goal of further expansion. investment in acquisitions of companies and capital lion euros. The equity ratio improved to 22.2% from shares in the fiscal year, and the funds used for this 16.5% in the prior year. This improvement is due to purpose obtained from the sale of mainly current a contribution to the capital reserve by the share- financial securities and an equity investment. holder and an increase in revenue reserves. The Cash flow from financing activities saw an measurement of securities at fair value also had a outflow of 31.2 million euros. This was mainly due positive effect. to the repayment of a bank loan. 20 GROuP MAnAGEMEnT REPORT SU B SE Q U E N T EV E N T S | R I SK R E P O RT 21 SUBSEQUENT EVENTS R I S K R E p O RT solvencies are also expected to rise in the automotive High levels of investment are required through- industry. DEKRA expects delayed payments and de- out the Group to develop innovative products and Reinforcement of vehicle expertise in Belgium Permanent monitoring of performance faults on receivables in the Automotive Services and expand business. The recoverability of such invest- At the beginning of the year, DEKRA acquired a The DEKRA brand stands for quality, safety, reliability Industrial Services business units. ments depends on whether the ambitious targets are majority share in the Belgian Coorevits Group. DEKRA and sustainability, as well as skilled employees and in- There is also increasing pressure on prices. achieved. Other general risks pertain to the amorti- is now a leading provider of vehicle expertise in novative solutions. This applies equally to our relation- Close attention to contract management and careful sation of investments in the IT infrastructure and the Belgium. DEKRA is already active in the field of exper- ships with customers and our internal processes. The customer credit ratings are important countermea- dependence of our business processes on complex tise in Brussels and Wallonia through the company integrated risk management and compliance system in sures. This is why the sales teams are increasingly data processing applications. Orbex Muys S.A. The acquisition of the Coorevits place within the Group addresses current economic, coordinating their activities across business units, Group means that these services can now be offered legal and business requirements and is systematically intensifying targeted dialogue through the creation Risks by Business Unit throughout Belgium. extended. Standardised processes ensure that significant of key accounts, and managing underlying contracts DEKRA Automotive: The automotive expertise and The Coorevits Group is represented at four risks that could influence the financial position and with a view to sustainability. testing business is not directly affected by economic locations in Flanders by the companies TC Survey performance are detected at an early stage. Current risk EU legislation can affect the inspection and trends. The development of vehicle numbers in the BVBA, Exco N.V., Expertisebureau Coorevits N.V., assessments are communicated within the Group on appraisal business in Europe. DEKRA carefully ob- respective markets is more influential. We also rely on Expertisecentrum Limburg BVBA, Expertisebureau an ongoing basis. This enables management and super- serves all relevant legal developments on all markets, product innovation in the appraisals business, e.g., in Gilis BVBA and All Claims Solutions BVBA. With visory bodies to initiate appropriate countermeasures is actively represented by liaison offices and promotes the area of on-board diagnostics. 56 employees, the company offers services in the immediately. objective discussion through its own contributions fields of vehicle expertise, fraud expertise, used Planning and controlling mechanisms are or through its work in industry. DEKRA Industrial: Industrial testing services are more car management, transport and building claims man- refined on an ongoing basis and adapted to reflect We consider business risks stemming from dependent on the state of the economy. Reduced orders agement and maritime expertise. It therefore current developments. Appropriate performance fluctuations in exchange rates to be limited. We in the manufacturing industry, particularly in France perfectly supplements the portfolio of Orbex Muys indicators ensure the permanent monitoring of our generate most of our sales and income in the euro and Germany, can impact revenue. The French construc- S.A. in terms of both geography and services offered. performance. The individual risks of each business zone. Translation risks relate to fluctuations in the tion industry is particularly affected by this. unit in its respective industry are recorded system- exchange rate with the Brazilian real. We manage DEKRA’s expansion into the energy industry atically and included in our action plans. They are interest fluctuation risks by planning ahead and DEKRA Personnel: There is intense competition in With effect as of March 25, 2010, DEKRA acquired a also incorporated into our change and innovation taking preventive measures. Strict counterparty the Out- and Newplacement, Temporary Work and 100 percent share in the Swedish industrial testing management in order to safeguard the long-term limits with regard to financial assets minimise the Qualification service lines. DEKRA Arbeit GmbH was provider ÅF-Kontroll AB. The company is one of the future of the Group. risk of incurring losses. directly affected by the slump in demand on the tem- leading industrial testers in Scandinavia and eastern DEKRA is pressing ahead unabated with its porary employment market, but also benefited from Europe, and was previously owned by the publicly General risks growth strategy, including global acquisitions. Ex- the return of stability. However, further fluctuations listed consulting firm ÅF AB. The acquisition makes Macroeconomic developments pose a fundamental risk pansion requires greater integration. The Group cannot be ruled out. The Qualification service line helps DEKRA the market leader for the testing of power to all companies, including the DEKRA AG Group. We responds to this challenge by intensifying its efforts to balance things out. State economic stimulus packages plants in Scandinavia. The company specialises in expect to continue experiencing the effects of the severe in the field of integration and project management, favour publicly funded training. DEKRA Personaldienste non-destructive materials testing, with a focus on recession of 2009 in the months to come. This can be remaining culturally sensitive and exploiting poten- GmbH has noted growing competition in the business power plants and large-scale systems. It is also accredited seen in the Buildings and Facilities, Temporary Work tial for improvement. with transfer companies as well as low demand for for the testing of printers, elevators and machines. and Out- and New Placement service lines. In the field We are committed to developing the integrated retransfers. ÅF-Kontroll employs around 450 employees and has of automotive services, insolvencies on the part of major risk and compliance management and sustainable more than 27 business premises in Sweden, with addi- manufacturers and strategic suppliers in Germany and quality management systems. DEKRA continually tional branches in Norway, the Czech Republic and the US could have a direct impact on our business. In improves its approach to liability risks. One way in Lithuania. some areas there is dependency on key accounts. In- which it does this is by taking out suitable insurance The acquisition of ÅF-Kontroll AB was financed in newly developed markets. using a loan facility taken out in the first quarter of 2010, which is also available for future acquisitions. 22 GROuP MAnAGEMEnT REPORT R I SK R E P O RT | F O R E C A ST R E P O RT 23 Personnel risks F O R E C A S T R E p O RT Our expansion demands a sustained high level Internally, we will continue improving our Sustainable success in the testing and expertise business of investment. We carefully weigh up these opportu- business processes and structures in order to realise depends on highly qualified employees. Identifying Muted economic recovery expected nities and risks. However, our sound financial base potential earnings. Our corporate strategy continues and recruiting suitable personnel is essential to the con- The halting recovery of the global economy in the allows us to aggressively pursue promising new to target profitable growth. We will give our all in tinued growth and international expansion of the busi- second half of 2009 is expected to continue into 2010. projects. We are also able to respond appropriately fiscal 2010 and beyond in pursuit of this goal. ness units. We combat falling numbers of graduates, a According to many forecasts, impetus for growth will to the intensification of competition in market sectors lack of management personnel for demographic reasons once again come from China, as well as improved export such as the automotive industry. This is helped Stuttgart, March 30, 2010 and attempts by competitors to poach employees using forecasts for Europe. However, there is uncertainty by the ongoing development of our service port- franchise concepts by constantly improving our training regarding the development of private demand and folio with regard to the one-stop support of our options and career opportunities, and pursuing a strategy inflation. The International Monetary Fund (IMF) customers. DEKRA AG of active recruitment. warned industrialised nations not to end their eco- We expect the intense competition in the The Management Board nomic recovery measures prematurely. It is vital to see DEKRA Automotive business unit in Germany to Risks to the company’s ability to continue as a a tangible improvement in private demand, and progress continue. We are therefore redoubling our marketing going concern on the labour market. efforts and building our business with all-in-one In our opinion, there are no risks to the DEKRA AG Economists forecast moderate growth of package solutions along the lines of our used car Group’s ability to continue as a going concern for the between 1.2% and 2.3% for Germany. Growth for the management. The service portfolio is also being foreseeable future. We are able to react in good time to entire euro zone is forecast to reach 0.7%. However, gradually added to and rounded off at an inter- general economic and industry risks at all times. This the prevailing opinion is that the situation remains national level. The foreign portion of revenue will Kölbl, Chairman Gerdon also applies to any circumstances relating to the Group’s unstable. The European automotive industry in continue to grow. financial position and performance. particular anticipates a steep drop in new registra- DEKRA Industrial is starting 2010 in Germany tions accompanied by job cuts once state purchase and France with a streamlined and more effective Opportunities incentives are discontinued. organisation. We are confident that we will be able We also see a number of opportunities in addition to to continue our expansion in these two core markets. the aforementioned risks. The global increase in de- DEKRA continues to generate growth We also see promising opportunities in markets only mand for safety and quality services is helping DEKRA DEKRA is holding its course despite the development recently entered by DEKRA. The acquisition of Klinke Thomä expand into growth markets. We therefore expect that of the economy. We expect double-digit percentage KEMA Quality B.V. enables us to further globalise further emerging economies in South America, Africa annual growth for the next three years. Future acquisi- the services offered by our Group, particularly in and Asia will institute mandatory vehicle testing. The tions and organic growth on the part of current com- the Pacific region. EU Chemicals Regulation REACH offers the opportu- panies will contribute equally to this growth. Our growth DEKRA Personnel continues to focus on inte- nity to gain companies throughout the world that export is based on earnings, which means that profit develop- grated HR services. DEKRA Arbeit GmbH should their products to the EU as customers. The growing ment will mirror revenue development. benefit from the trend among industrial companies importance of sustainability management opens up a All business units are in a position to be able to initially cover increases in order intake in periods Mannsperger wide range of new opportunities to re-establish and to grow profitably in the next two years. The national of economic recovery using temporary workers. The reinforce DEKRA’s services on the market. and international business is being systematically ongoing instability of the labour market favours expanded to incorporate innovative services. Our publicly funded training measures. consistent brand strategy enables us to tap new fields of activity and penetrate new national markets. 24 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s CONTENTS C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s C O N S O L I DAT E D STAT E M E N T O F C OM P R E H E N SI V E I N C OM E 25 COnsOlIDATED FInAnCIAl DEKRA AG sTATEMEnTs COnsOlIDATED sTATEMEnT OF COMPREhEnsIVE InCOME FOR FIsCAl YEAR 2009 COnTEnTs 25 Consolidated Statement of Comprehensive Income IN EUR Notes 2009 2008 26 Consolidated Statement of Financial Position Revenue 6.1 1,710,017,582.34 1,595,816,036.84 Increase in inventories of work in progress 258,302.16 385,598.97 28 Consolidated Statement of Changes in Equity Own work capitalised 0.00 1,057,308.24 Other operating income 6.2 25,165,139.69 19,093,446.39 30 Consolidated Statement of Cash Flows Cost of materials 6.3 – 217,311,970.15 – 175,039,693.02 32 Notes to the Consolidated Financial Statements personnel expenses 6.4 – 1,022,616,670.44 – 964,223,892.05 32 1 General Comments Other operating expenses 6.5 – 363,696,541.77 – 327,484,580.16 32 2 Comments on First-time Application of IFRSs Depreciation, amortisation and impairment losses on property, 34 3 Accounting Principles plant and equipment and intangible assets 6.6 – 37,179,385.60 – 28,075,367.11 38 4 Accounting Policies profit/loss from financial assets accounted for using the equity method 6.7 289,101.22 515,287.92 46 5 Business Combinations Interest income 6.7 9,375,673.88 11,115,188.18 47 6 Statement of Comprehensive Income/Income Statement Interest expense 6.7 – 4,092,554.97 – 8,047,602.73 51 7 Statement of Financial Position Other financial result 6.7 1,517,188.72 – 25,240,948.20 63 8 Statement of Cash Flows Financial result 6.7 7,089,408.85 – 21,658,074.83 63 9 Other Disclosures in the Notes Result from ordinary activities 101,725,865.08 99,870,783.27 64 10 Capital Management 64 11 Financial Management Income taxes 6.8 – 23,213,593.50 – 28,020,688.47 65 12 Financial Instruments Profit for the period 78,512,271.58 71,850,094.80 72 13 Related Party Disclosures thereof attributable to owners of DEKRA AG 6.9 78,293,091.73 72,699,127.24 73 14 Disclosures on the Management Board and Supervisory Board thereof attributable to minority interests 6.9 219,179.85 – 849,032.44 74 15 Remuneration of the Management Board and the Supervisory Board Net (loss)/gain on available-for-sale financial assets 6.9 8,433,509.97 2,043,347.32 74 16 Significant Events After the Reporting Date Deferred taxes relating to the components of other 74 17 Other Notes comprehensive income 6.8 – 1,516,403.45 460,150.57 Exchange differences on translation of foreign operations 269,397.27 – 355,834.00 79 Audit Opinion Total comprehensive income 85,698,775.37 73,997,758.69 thereof attributable to 80 Report of the Supervisory Board owners of DEKRA AG 85,479,595.52 74,846,791.13 minority interests 219,179.85 – 849,032.44 26 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s C O N S O L I DAT E D STAT E M E N T O F F I NA N C IA L P O SI T IO N 27 DEKRA AG COnsOlIDATED sTATEMEnT OF FInAnCIAl POsITIOn As OF DECEMBER 31, 2009 aSSetS IN EUR Notes 31.12.2009 31.12.2008 01.01.2008 e q u i t y a n d l i a b i l i t i eS IN EUR Notes 31.12.2009 31.12.2008 01.01.2008 A. Non‑current assets A. Equity Intangible assets 7.1 258,635,290.15 178,355,703.00 94,778,713.77 Issued capital 7.11 25,564,594.06 25,564,594.06 25,564,594.06 property, plant and equipment 7.2 139,163,973.04 134,066,349.82 113,575,336.40 Capital reserve 7.11 190,529,369.12 130,529,369.12 90,529,369.12 Financial assets accounted for using Revenue reserves 7.11 19,619,131.06 6,360,176.62 – 15,696,480.92 the equity method 7.3 812,235.68 796,584.77 3,725,597.21 Accumulated other comprehensive income 7.11 6,896,536.73 – 288,879.09 – 2,436,542.98 Other non-current financial assets 7.4 143,027,498.95 130,946,102.40 144,152,588.75 Total equity of the owner 7.11 242,609,630.97 162,165,260.71 97,960,939.28 Other non-current assets 7.5 106,775,512.18 87,989,546.20 70,069,403.42 Minority interests 7.12 3,996,939.47 4,446,657.93 1,977,033.25 Deferred income tax assets 6.8 31,644,718.29 33,858,909.39 40,743,131.09 246,606,570.44 166,611,918.64 99,937,972.53 680,059,228.29 566,013,195.58 467,044,770.64 B. Non‑current liabilities B. Current assets provisions for pensions and similar obligations 7.13 439,239,515.62 420,879,792.25 401,747,072.38 Inventories 7.6 3,995,852.01 3,450,475.29 2,603,261.73 Other non-current provisions 7.14 36,034,475.52 22,752,719.03 20,929,720.83 Trade receivables 7.7 258,272,076.61 247,066,583.46 210,219,603.74 Non-current financial liabilities 7.15 12,361,536.92 16,115,320.84 39,322,650.47 Other current financial assets 7.8 94,399,131.12 133,610,932.31 144,775,893.50 Other non-current liabilities 7.17 4,201,673.32 3,428,397.63 2,975,068.76 Other current assets 7.9 21,403,442.16 16,315,422.21 15,567,804.26 Deferred income tax liabilities 6.8 19,062,082.91 9,897,074.36 8,589,563.88 Current income tax receivables 344,749.77 1,054,960.63 2,285,923.00 510,899,284.29 473,073,304.11 473,564,076.32 Cash and cash equivalents 7.10 51,802,366.08 40,723,221.74 36,342,242.94 C. Current liabilities 430,217,617.75 442,221,595.64 411,794,729.17 Other currrent provisions 7.14 16,081,273.18 7,139,650.29 9,348,987.36 Trade payables 7.16 54,183,628.04 52,766,420.50 48,252,901.82 Current financial liabilities 7.15 79,718,529.40 106,521,367.27 65,680,132.58 Other current liabilities 7.17 200,070,013.98 199,429,084.32 177,808,924.68 Current income tax liabilities 2,717,546.71 2,693,046.09 4,246,504.52 352,770,991.31 368,549,568.47 305,337,450.96 Total assets 1,110,276,846.04 1,008,234,791.22 878,839,499.81 Total equity and liabilities 1,110,276,846.04 1,008,234,791.22 878,839,499.81 28 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s C O N S O L I DAT E D STAT E M E N T O F C HA N G E S I N E Q U I T Y 29 DEKRA AG COnsOlIDATED sTATEMEnT OF ChAnGEs In EquITY As OF DECEMBER 31, 2009 IN KEUR Pa r e n t m i n o r i t y i n t e r eS t S Accumulated other comprehensive income Equity Issued Capital Revenue Translation Available-for-sale Total of the Minority Group capital reserve reserves reserve assets owners interests equity As of 01.01.08 25,565 90,529 – 15,696 0 – 2,437 97,961 1,977 99,938 profit and loss transfer agreement/dividend distribution 0 0 – 51,039 0 0 – 51,039 – 59 – 51,098 Capital increase 0 40,000 0 0 0 40,000 0 40,000 Other changes 0 0 397 0 0 397 117 514 Changes to the consolidated group 0 0 0 0 0 0 3,261 3,261 Total comprehensive income for the period 0 0 72,699 – 356 2,503 74,846 – 849 73,997 As of 31.12.08 25,565 130,529 6,361 – 356 66 162,165 4,447 166,612 profit and loss transfer agreement/dividend distribution 0 0 – 65,777 0 0 – 65,777 – 72 – 65,849 Capital increase 0 60,000 0 0 0 60,000 0 60,000 Other changes 0 0 742 0 0 742 – 597 145 Changes to the consolidated group 0 0 0 0 0 0 0 0 Total comprehensive income for the period 0 0 78,293 269 6,918 85,480 219 85,699 As of 31.12.09 25,565 190,529 19,619 – 87 6,984 242,610 3,997 246,607 30 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s C O N S O L I DAT E D STAT E M E N T O F C A SH F L OWS 31 DEKRA AG COnsOlIDATED sTATEMEnT OF CAsh FlOws FOR FIsCAl YEAR 2009 o P e r at i n g ac t i v i t i eS IN KEUR 2009 2008 Fi n a n c i n g ac t i v i t i eS IN KEUR 2009 2008 Group profit for the period 78,512 71,850 + Cash received from equity contributions by owners 60,000 40,000 +/– Depreciation/amortization/impairment losses/reversals of impairment losses 40,111 30,372 – Cash paid to owners and minority interests from profit transfers/dividends – 51,111 – 48,013 –/+ Gain/loss from the disposal of financial and intangible assets and property, +/– Cash received/paid in relation to loans to owners – 8,658 18,601 plant and equipment – 25,562 270 – Cash repayments of loans – 32,288 – 8,892 –/+ Change in non-current provisions 30,688 14,160 + Cash received from borrowing 1,894 2,608 +/– Change in interest receivables and liabilities 128 – 204 – Cash repayments of liabilities from finance leases – 1,076 – 863 –/+ Change in income tax receivables/liabilities – 4,187 7,057 = Cash flow from financing activities – 31,239 3,441 –/+ Change in deferred income tax receivables/liabilities – 2,163 1,228 +/– Other non-cash expenses/income – 7,659 – 407 –/+ Changes in inventories, receivables and other assets – 7,301 – 12,927 c a S h a n d c a S h e q u i va l e n t S IN KEUR 2009 2008 +/– Change in liabilities and current provisions 2,060 13,215 +/– profit/loss from associates – 314 – 412 Changes in cash and cash equivalents 10,727 2,367 = Cash flow from operating activities 104,313 124,202 +/– Changes in cash and cash equivalents due to exchange rates and changes in the consolidated group 352 2,014 + Cash and cash equivalents at the beginning of the period 40,723 36,342 = Cash and cash equivalents at the end of the period 51,802 40,723 i n v eS t i n g ac t i v i t i eS IN KEUR 2009 2008 – Cash paid for investments in intangible assets and property, plant and equipment – 37,242 – 35,401 financial assets and other assets – 95,241 – 87,097 Shares of fully consolidated companies – 87,385 – 78,813 + Cash received from disposals of intangible assets and property, plant and equipment 720 1,342 financial assets and other assets 156,801 74,693 = Cash flow from investing activities – 62,347 – 125,276 32 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 33 DEKRA AG nOTEs TO ThE COnsOlIDATED FInAnCIAl sTATEMEnTs FOR FIsCAl YEAR 2009 1 General Comments applicable as of the date of publication had always been Group equity pursuant to IFRSs as of January 1, 2008 Pension provisions and recognition of the assets of applied, with the exception of the following simplifications is 65.8 million euros lower overall than group equity pursuant DEKRA Unterstützungskasse e. V. 1.1 Commercial register and purpose of the Company and prohibitions laid down in IFRS 1: to HGB (December 31, 2008: 54.8 million euros). Significant By taking into account indirect pension obligations covered DEKRA AG has its registered office in Stuttgart, Germany, at differences in equity between HGB and IFRS resulted in by DEKRA Unterstützungskasse e. V., Stuttgart, and the Handwerkstrasse 15 and is entered in the commercial register at No retrospective application of the provisions relating particular from the following: associated recognition of pension provisions, assets and the local court of Stuttgart under HRB No. 18074. to business combinations pursuant to IFRS 3 and carry employer’s pension liability insurance claims, equity fell DEKRA is an international, independent expert or- forward of carrying amounts from business combination Goodwill and intangible assets by 95 million euros overall. Pension provisions also ganisation, operating in the automotive services, industrial accounting in the HGB consolidated financial statements Through the utilisation of IFRS 1, no retrospective adjust- increased as a result of taking future salary, career and services and personnel services segments. No retrospective determination of exchange differences ments were made to goodwill. The higher value of intan- pension trends into account pursuant to IAS 19 and due The consolidated financial statements as of December 31, pursuant to IAS 21 and assumption that cumulative gible assets primarily resulted from the adjustment of to the discount rate being 0.5% lower than for HGB. 2009 include the Company and its subsidiaries. exchange differences as of January 1, 2008 amount to zero useful lives to the expected useful life of individual intan- Phased retirement obligations The management board authorized the issue of the con- overall gible assets. From 2008, the amortisation of goodwill Phased retirement obligations were discounted at the lower solidated financial statements of DEKRA AG for the fiscal year Reporting all cumulative actuarial gains and losses on carried out under HGB ceased to apply. discount rate pursuant to IFRSs and, in derogation to HGB, from January 1 to December 31, 2009 as of March 30, 2010 pension obligations as of January 1, 2008 under revenue Property, plant and equipment were not calculated in line with the interpretative letter and presented them to the supervisory board for review and reserves in the statement of comprehensive income The increase in property, plant and equipment resulted from the Federal Ministry of Finance but rather according approval. from the adjustment of useful lives as well as depreciation to the provisions of IAS 19. The opening IFRS statement of financial position was and write-downs. Financial liabilities and other provisions 1.2 Group affiliation prepared as of January 1, 2008. The changes in measurement Financial instruments Due to the contractually agreed interest on obligations All shares in DEKRA AG are held by DEKRA e. V., Stuttgart. compared with HGB were recognised in profit or loss, taking The financial instruments pursuant to HGB were largely relating to participation rights, using the effective interest DEKRA e. V., Stuttgart, is also the ultimate parent of the into account deferred taxes. The reconciliation of group equity classified as available-for-sale (AfS) securities and accord- rate method results in a higher value for the liabilities. By Company. from HGB to IFRSs is presented below: ingly, each change in value is recognised in other compre- contrast, the derecognition of provisions that cannot be hensive income. The difference is mainly attributable to recognised under IFRSs and the difference in the measure- IN MILLION EUROS 01.01.08 31.12.08 2 Comments on First-time Application of IFRSs the fact that, under HGB, impairment losses were only ment of provisions and liabilities have a positive effect on Up to and including 2008, the consolidated financial statements Group equity under HGB 165.7 221.4 recognised for permanent decreases in value, whereas equity. of DEKRA AG were prepared in accordance with German under IFRSs, all changes in the value of securities are Deferred taxes Goodwill/intangible assets 1.9 12.0 commercial and stock corporation law. Utilising the option accounted for. Deferred taxes result from the abovementioned differences property, plant and equipment 15.5 15.8 pursuant to Sec. 315a (3) HGB [“Handelsgesetzbuch”: German Receivables from percentage of completion in carrying amounts in the IFRS statement of financial Commercial Code], DEKRA AG prepared its consolidated Financial instruments – 5.0 – 5.7 Orders begun but not yet completed were measured by position and the tax base, which are largely due to the financial statements as of December 31, 2009 in accordance with Receivables from percentage reference to the stage of completion in accordance with higher pension provisions. of completion 2.1 2.4 the International Financial Reporting Standards (IFRSs) as IAS 18.20 et seq. and accordingly also include the profit endorsed by the EU as of the reporting date for the first time. pension provisions and recognition margin for not yet completed services. of the assets of DEKRA The financial statements were converted from HGB to Unterstützungskasse e.V. – 94.7 – 92.9 IFRS in compliance with IFRS 1 “First-time Adoption of phased retirement obligations – 12.7 – 13.1 IFRSs”. It was assumed retroactively that the IFRSs/IASs Financial liabilities and other provisions – 4.1 – 5.2 Deferred taxes 27.8 27.0 Other 3.4 4.9 Group equity under HGB 99.9 166.6 34 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 35 The consolidated profit for fiscal year 2008 is 9.4 million With the exception of the effects from consolidating DEKRA S TA N D A R D/ I N T E R p R E TAT I O N ; E F F E C T I V E D A T E A N T I C I pA T E D E F F E C T O N T H E C O N S O L I D AT E D F I N A N C I A L S TA T E M E N T S O F D E K R A A G euros higher overall under IFRSs than under HGB. This is Unterstützungskasse e. V., the conversion to IFRSs had no mainly attributable to the variations already described under significant impact on the consolidated statement of cash flows. Endorsed by the EU reconciliation of group equity. The discontinuation of good- IAS 27 Consolidated and Separate Financial Statements No significant effects on the consolidated financial statements antici- will amortisation also affected the consolidated profit for the 3 Accounting Principles (revised 2008); July 1, 2009 pated at present. Minor effects could result from the new provisions for period. Under IFRSs, goodwill is subject only to regular im- The Company has prepared its consolidated financial statements for negative minority interests. pairment testing. In addition, low pension costs and own work the first time in accordance with the International Financial Report- Amendment to IAS 32 – No effects on the consolidated financial statements anticipated at capitalised impacted positively on group profit for the period. ing Standards, as adopted by the EU as of the reporting date. Classification of Rights Issues; February 1, 2010 present. However, higher amortisation of intangible assets recognised The principles of the framework and the IFRSs of the Amendment to IAS 39 – Eligible Hedged Items; No effects on the consolidated financial statements anticipated at from business combinations had the opposite effect. International Accounting Standards Board (IASB) as well as July 1, 2009 present. the interpretations of the International Financial Reporting IFRS 1 First-time Adoption of International Financial Reporting No effects on the consolidated financial statements anticipated at IN MILLION EUROS 2008 Standards (revised 2008); July 1, 2009 present. Interpretations Committee (IFRIC) effective as of the report- Group profit for the period under HGB ing date applied. IFRS 3 Business Combinations (revised 2008); No significant effects on the consolidated financial statements antici- Information on the adoption of specific IFRSs is provided July 1, 2009 pated, since DEKRA will exercise the options appropriately. Incidental (before profit transfer agreements) 62.5 acquisition costs will in the future be recognised immediately as Goodwill amortisation 10.9 in the comments on the individual items of the statement of expenses. Effects could also arise from the new provisions on succes- financial position later on in these notes. sive purchases and the recognition of provisional purchase price allo- Depreciation and impairment losses on property, The consolidated financial statements are presented in cations as well as subsequent changes to conditional purchase price plant and equipment – 0.1 changes. Difference from percentage of completion 0.3 euros. Unless otherwise stated, all amounts are disclosed in IFRIC 12 Service Concession Arrangements; No effects on the consolidated financial statements anticipated at thousands of euros (KEUR). Difference from pension expenses 0.7 January 1, 2008 present. The consolidated financial statements comply with the Reduced expense for phased retirement 0.6 IFRIC 15 Agreements on the Construction of Real Estate; No effects on the consolidated financial statements anticipated at requirements of Sec. 315a (3) HGB. January 1, 2009 present. Additional expense for impairment losses on The IASB and the IFRIC have issued the standards, financial instruments – 1.0 IFRIC 16 Hedges of a Net Investment in a Foreign Operation; No effects on the consolidated financial statements anticipated at interpretations and amendments listed below that were not October 1, 2008 present. Internally generated intangible assets 1.1 yet mandatory and some of which had not been endorsed by IFRIC 17 Distributions of Non-Cash Assets to Owners; July 1, 2009 No effects on the consolidated financial statements anticipated at Deferred taxes – 1.3 the EU as of December 31, 2009. There are no plans for early present. Additional expense for impairment losses on adoption of these new provisions. Unless stated otherwise, IFRIC 18 Transfers of Assets from Customers; No effects on the consolidated financial statements anticipated at intangible assets (instead of goodwill) – 1.8 the Group does not currently expect the adoption of these July 1, 2009 present. Group profit for the period under IFRSs 71.9 standards and interpretations to have a significant impact on Amendment of IFRS 2 – Group Cash Settled Share-based No effects on the consolidated financial statements anticipated at Change in available-for-sale reserve in the statement the presentation of the consolidated financial statements. payment Transactions; January 1, 2010 present. of comprehensive income 2.0 Deferred taxes reported in the statement Individual amendments to IFRSs in 2009 of comprehensive income 0.5 The Group has not yet applied the following amendments: Currency translation reported in the statement IFRS 2 Share‑based payment: It was clarified that the contribution No effects on the consolidated financial statements anticipated at of comprehensive income – 0.4 of a business unit when establishing a joint venture and business present. combinations under joint control does not fall under the scope of Total comprehensive income 74.0 the IFRS. IFRS 5 Non‑current Assets Held for Sale and Discontinued Operations: No significant effects on the consolidated financial statements anticipated It was clarified that for non-current assets and disposal groups classi- at present. fied as held for sale and discontinued operations, only the disclosure requirements under IFRS 5 apply. The disclosure requirements under other IFRSs are only to be noted if the relevant standards or interpre- tations expressly require these disclosures for assets under the scope of IFRS 5 and discontinued operations. 36 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 37 S TA N D A R D/ I N T E R p R E TA T I O N ; E F F E C T I V E D AT E A N T I C I pAT E D E F F E C T O N T H E S TA N D A R D/ I N T E R p R E TAT I O N ; E F F E C T I V E D A T E A N T I C I pA T E D E F F E C T O N T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S O F D E K R A A G C O N S O L I D AT E D F I N A N C I A L S TA T E M E N T S O F D E K R A A G IAS 39 Financial Instruments: Recognition and Measurement: A pre- No significant effects on the consolidated financial statements anticipated IFRS 8 Operating segments: It was clarified that segment assets No significant effects on the consolidated financial statements anticipated payment option is deemed to be closely related to the host contract if at present. and segment liabilities only have to be disclosed if these assets and at present. the option's exercise price is measured in such a way that the lender liabilities are regularly reported to the responsible chief operating is refunded the approximate present value of the interest rate disad- decision maker. vantage for the remaining term of the host contract. It was also found IAS 1 Presentation of Financial Statements: Assets and liabilities No significant effects on the consolidated financial statements anticipated that the exception for contracts between buyer and seller to buy or classified as held for trading in accordance with IAS 39 Financial at present. sell a company at a later date only applies for binding forward con- Instruments: Recognition and Measurements cannot be automatically tracts but not for derivatives for which more measures are necessary. classified as current in the statement of financial position. The third new provision states that gains or losses from the cash flow hedge of a forecast transaction that later results in the recognition of IAS 7 Statement of cash flows: It was established that only those No significant effects on the consolidated financial statements anticipated a financial instrument or from the cash flow hedge on recognized expenses that result in the recognition of an asset can be classified at present. financial instruments must be reclassified in the period in which the as cash flows from investing activities. hedged expected cash flows affect profit or loss. IAS 17 Leases: The special guidance on the classification of leases of No significant effects on the consolidated financial statements anticipated IFRIC 9 Reassessment of Embedded Derivatives: IFRIC 9 does not No significant effects on the consolidated financial statements anticipated land was lifted. From now on, the general guidance applies. at present. apply to a potential reassessment as of the date of acquisition of at present. IAS 18 Revenue: The Board has provided further guidance on answer- No significant effects on the consolidated financial statements anticipated derivatives in contracts acquired in a combination between entities ing the question of whether a company is acting as customer or agent. at present. under common control or in the formation of a joint venture. This No effective dates are prescribed for this amendment in the appendix amendment is applicable for fiscal years beginning on or after to IAS 18, which does not form part of the standard. As such, it July 1, 2009. became effective upon publication. IFRIC 16 Hedges of a Net Investment in a Foreign Operation: No significant effects on the consolidated financial statements anticipated IAS 36 Impairment of Assets: It has been clarified that a cash-generat- No significant effects on the consolidated financial statements anticipated Hedges can be held by any entity within the group, provided the at present. ing unit to which goodwill acquired in a business combination is allo- at present. requirements for designation, documentation and effective dates cated, may not be larger than an operating segment within the mean- defined in IAS 39 are met. This amendment is applicable for fiscal ing of IFRS 8 prior to aggregation under the criteria specified there. years beginning on or after July 1, 2009. IAS 38 Intangible Assets: If an intangible asset acquired as part of No significant effects on the consolidated financial statements anticipated Not endorsed by the EU: a business combination can only be identified together with another at present. intangible asset, the buyer can state the group of these intangible Amendment of IFRS 1 – Additional exemptions for first-time adopters No effects on the consolidated financial statements anticipated at assets as a single intangible asset if the individual assets in this group of IFRSs; January 1, 2010 present. have the same useful life. It also states that the methods specified IFRS 9 Financial Instruments: Classification and Measurement; The effects primarily relate to the amended disclosure of assets and the in this standard for determining the fair value of intangible assets January 1, 2013 different presentation of future fluctuations in debt instruments. acquired as part of a business combination are merely examples. Companies are free to use other methods. These changes are only Amendment of IFRS 1 – Limited exemptions for first-time adopters of No significant effects on the consolidated financial statements anticipated applicable from the fiscal year beginning on or after July 1, 2009. IFRSs from comparative IFRS 7 disclosures; July 1, 2010 at present. IAS 24 Related party Disclosures (revised 2009); No significant effects on the consolidated financial statements anticipated January 1, 2011 at present. Amendment of IFRIC 14 – prepayments of a Minimum Funding No effects on the consolidated financial statements anticipated at Requirement; January 1, 2011 present. IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments; No significant effects on the consolidated financial statements anti- July 1, 2010 cipated at present. 38 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 39 4 Accounting Policies in an associate is not recognised separately, it is not tested for Business combinations are accounted for using the Currency translation impairment separately in accordance with the requirements acquisition method on the basis of carrying amounts as of DEKRA AG’s functional and presentation currency is the euro. 4.1 Principles of consolidation for goodwill impairment testing under IAS 36 “Impairment the date on which control is acquired (IFRS 3). The portion The concept of a functional currency is applied when translating All companies over which the Group’s ultimate parent exercises of Assets”. Instead, the entire carrying amount of the invest- of the purchase price paid in expectation of future positive financial statements of consolidated entities prepared in foreign control are included in full in the consolidated financial state- ment is tested for impairment in accordance with IAS 36. cash flows from the acquisition that cannot be allocated to currencies into euros. Because the group entities run their own ments. Control is assumed as soon as the parent holds more than Minority interests in the comprehensive income and identified or identifiable assets in the full remeasurement, is operations independently, they are accounted for as foreign 50% of the voting rights of the subsidiary or when control as equity of subsidiaries are disclosed separately under equity recognised as goodwill. operations within the meaning of IAS 21 and the functional defined by IAS 27 is given by virtue of other rights. First-time in the statement of comprehensive income, if no negative The opening IFRS statement of financial position as currency is the local currency. When using this method, assets consolidation is carried out as of the date on which DEKRA AG minority interests arise. Upon acquisition of additional shares of January 1, 2008 adopted the carrying amounts of the good- and liabilities are translated at the closing rate, equity amounts obtains direct or indirect control of the subsidiary. of subsidiaries, the difference between the cost of these shares will recognised as of December 31, 2007 in accordance the at historical rates, and expenses and income at the annual aver- There were no joint ventures as of the reporting date or and the minority interest previously recognised in the Group previous GAAP, the German Commercial Code (HGB). No age rate. The resulting difference is reported in the statement of during the reporting period which would have had to be for these shares is reported in the statement of comprehensive remeasurement was made. Since this date, goodwill has no other comprehensive income. consolidated using the equity method. income. longer been amortised. Instead, pursuant to IAS 36, it is tested Transactions in foreign currencies are disclosed at Associates are accounted for using the equity method. The consolidated group included DEKRA AG and the for impairment annually, or more frequently if there are the exchange rate prevailing on the date of the transaction. An associate is an entity over which the Group exercises other companies listed under other disclosures accordingly indications that it is impaired. Any identified goodwill impair- Monetary assets and liabilities in foreign currencies are trans- significant influence, but that is neither a subsidiary nor a as of December 31, 2009. ment is recognised in profit or loss as impairment losses. lated at the exchange rate as of the reporting date. Exchange joint venture. In the consolidated financial statements of The financial statements of the individual subsidiaries All intragroup transactions between the consolidated differences are recognised in profit or loss and reported in the DEKRA AG, one German (prior year: one) and two foreign are included in the consolidated financial statements as of entities were eliminated. Effects of consolidation on income statement of other comprehensive income under “Other op- (prior year: two) companies were consolidated using the December 31, 2009 in accordance with the statutory require- taxes are accounted for by recognising deferred taxes. erating income” or “Other operating expenses”. Non-monetary equity method. ments using the uniform accounting policies stipulated by assets and liabilities measured at historical cost in a foreign Financial assets accounted for using the equity method DEKRA AG. Overall, in addition to DEKRA AG, Stuttgart, currency are translated at the historical rate prevailing on the are recognised at cost as of the date of acquisition. Subse- 19 German (prior year: 21) and 67 foreign (prior year: 62) date of the transaction. The following table shows the exchange quently, the carrying amounts of the equity investments are entities are included. There are 74 subsidiaries (prior rates of material entities listed in foreign currencies. increased or reduced each year by the proportionate share of year: 64) not included in the consolidated financial statements, profit or loss, dividends distributed or other changes in equity which are not significant for a true and fair view of the Group’s RATE AS OF REpORTING DATE ANNUAL AVERAGE RATE in accordance with the equity method. The principles of pur- financial position and performance. In addition, 11 (prior 1 EURO = 31.12.09 31.12.08 31.12.09 31.12.08 chase price allocation for full consolidation apply in the same year: 12) associates were not included due to immateriality. way to the initial measurement of investments in associates. In accordance with the inclusion of indirect pension Brazilean real (BRL) 2.5113 3.2843 2.7706 2.6815 Goodwill relating to the associate is included in the carrying obligations that are covered by DEKRA Unterstützungskasse US dollar (USD) 1.4406 1.3977 1.3933 1.4709 amount of the investment and is not amortised. Because good- e. V., the consolidated financial statements also include the will that forms part of the carrying amount of an investment assets of DEKRA Unterstützungskasse e. V. that relate to the Czech koruna (CZK) 26.4730 26.5850 26.4548 24.9184 consolidated member companies. Croatian kuna (HRK) 7.3000 7.3520 7.3413 7.2385 polish zloty (pLN) 4.1045 4.1823 4.3298 3.5225 40 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 41 4.2 Significant accounting policies Property, plant and equipment Lease payments for operating leases are recognised in Financial assets at fair value through profit or loss Pursuant to IAS 16, property, plant and equipment are recognised profit or loss on a straight-line basis over the lease term. This category includes assets that must be measured at fair Goodwill at cost less accumulated depreciation and accumulated impair- Gains and losses from the disposal of non-current assets value through profit or loss (trading book) and assets that Goodwill is initially measured at cost, that being the excess of ment losses. If there are indications of impairment and are determined as the difference between the net disposal can be optionally assigned to this category. The trading the cost of the business combination over the Group’s interest in the recoverable amount is below the cost less any accumulated proceeds and the carrying amount of the asset and recognised book comprises assets that are held for speculative purposes the fair value of the identifiable assets, liabilities and contingent depreciation and impairment losses, then an impairment loss is in the statement of comprehensive income as “Other operat- or are part of a trading portfolio. Derivates are assigned to liabilities of the acquired entity. recognised on the item of property, plant and equipment. ing income” or “Other operating expenses”. the trading book, unless they are recognised as part of an Under IFRS 3, goodwill is no longer amortised over Costs of conversion include direct material costs and Pursuant to the revised IAS 23, borrowing costs are only effective hedge. Other financial assets can also be assigned an expected useful life. Where necessary, impairment losses production overheads. Subsequent costs are capitalised when capitalised if they are incurred for the financing of the acquisi- to this category under certain circumstances. are recognised in accordance with IAS 36 (impairment only it is probable that future economic benefits, in excess of the tion, construction or production of a qualifying asset. A quali- The assets are initially recognised at cost, excluding approach). originally assessed standard of performance of the asset, will fying asset is an asset that necessarily takes a substantial period transaction costs. They are subsequently recognised at fair flow to the Company. All other subsequent expenditure is of time to get ready for its intended use or sale. value. This corresponds to the amount that could be re- Intangible assets recognised directly as an expense. From January 1, 2009, covered if the asset were traded under current market Acquired intangible assets are recognised at cost and incidental cost. borrowing costs are capitalised when the requirements of a Financial assets conditions. This generally means the market price, if the The useful lives of all intangible assets are classified as finite. Intan- qualifying asset are met. Maintenance expenses are treated as In addition to securities, financial assets primarily include shares financial asset is traded on an active market. All changes gible assets are amortised on a straight-line basis over their expected a period expense. Forecast maintenance expenses are capita- in subsidiaries, included at amortised cost for reasons of mate- in value in this category are recognised through profit or useful lives, which are between three and eight years. In some cases, lised as cost or subsequent costs if the capitalisation require- riality, and the financial instruments described below, as well loss. useful lives of trademarks or customer relationships of 10 to 15 years ments are met. as investments in entities, which are measured at fair value if The DEKRA Group only classified derivatives in this are used as part of purchase price allocations. Where necessary, Property, plant and equipment are depreciated on a market values are available, and otherwise at amortised cost. The category. impairment losses are recognised, which are reversed if the reasons straight-line basis over the economic useful lives of the indi- loans to non-consolidated subsidiaries and investees also included for the impairment cease to apply at a later date. vidual components. The useful lives of buildings and their are likewise measured at amortised cost. Loans and receivables Internally generated intangible assets such as software individual components are between 10 and 50 years, plant and Loans and receivables are non-derivative financial assets or development costs are stated at cost if they meet the machinery between 10 and 25 years, and furniture and fixtures Financial instruments with fixed or determinable payments and that are not recognition criteria under IAS 38. Cost includes directly and between 3 and 20 years. Significant residual values within the A financial instrument is any contract that gives rise to a finan- quoted in an active market. indirectly allocable costs. Research costs are treated as period meaning of IAS 16.53 were taken into account in the calculation cial asset of one entity and a financial liability or equity instrument They are initially recognised at cost plus transaction expenses and were immaterial in the fiscal year. Borrowing of the depreciable amount. of another entity. IAS 39 allows the following categories for costs. Subsequent measurement is at amortised cost using costs are capitalised if they relate to a qualifying asset. Leased assets for which both the economic risk and the financial assets: the effective interest method. Valuation allowances, for economic benefit lie with the Group entity (finance lease) are example due to the counterparty’s inability to pay, are al- recognised in the statement of financial position pursuant to ways recognised in profit or loss. IAS 17 and depreciation expense and impairment losses are The DEKRA Group uses this category for some of its charged over the estimated useful life of the leased asset. The financial assets. payment obligation is recognised at the lower of the fair value of the asset and the present value of all future lease payments. In this way, the lease payments are distributed over interest expenses and changes in the liability in such a way as to pro- duce a constant rate of interest on the remaining liability. Interest expenses are recognised immediately through profit or loss. 42 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 43 Held-to-maturity investments Other liabilities Trade receivables and other financial assets Income taxes include expenses and income from current Only financial assets that the Company intends to hold, All other financial liabilities are measured at amortised Trade receivables and other financial assets are recognised at and deferred taxes as well as tax allocations to the parent and can hold, to maturity may be assigned to this category. cost using the effective interest rate method and assigned nominal value. Non-current non-interest bearing receivables are DEKRA e. V., with which the Company forms a tax group for In addition, the assets must have fixed or determinable to this category. stated at present value using a matching interest rate. Credit risks VAT purposes. payments, and fixed terms, and be listed on an active A financial liability is any liability that is a contractual are accounted for using adequate specific bad debt allowances. Current income tax liabilities (income tax assets) are market. obligation to deliver cash or another financial asset to an- Bad debt allowances are estimated taking into account payment measured at the amount expected to be paid to (recovered The assets are initially recognised at cost plus trans- other entity or to exchange financial assets or financial histories, age structure, a substantial deterioration in the bor- from) the tax authorities. The calculation is based on the tax action costs. Subsequent recognition is at amortised cost. liabilities with another entity under conditions that are rower’s creditworthiness and a high probability of insolvency of rates enacted or substantively enacted as of the reporting Permanent impairment losses are recognised in profit or potentially unfavourable to the entity. Liabilities are rec- a debtor. Trade receivables also include receivables from service date. loss. ognised when it is probable that an outflow of resources contracts not yet billed. In accordance with IAS 18.20 et seq., Deferred taxes are recognised using the liability method The DEKRA Group does not use this category. embodying economic benefits will be required to settle an they are recognised using the percentage-of-completion method. in accordance with IAS 12 (revised 2000) for temporary obligation and this amount can be reliably measured. The The stage of completion of each service contract is calculated differences between the tax accounts and the consolidated Available-for-sale financial assets liabilities are stated at amortised cost. Participation capital using the cost-to-cost method as the proportion that costs in- financial statements. Deferred tax assets and liabilities are All other financial assets are classified as available- was measured using the effective interest rate method due curred bear to the estimated total costs. If the outcome of a measured using the tax rates that are expected to apply for for-sale. to the secured interest payments. service contract cannot be reliably determined, revenue is only the period of reversal of the difference. They are initially recognised at cost plus transaction The DEKRA Group uses this category for its financial recognised to the extent of the contract costs incurred. Deferred tax assets for unused tax losses are only costs. Subsequent recognition is at fair value. However, liabilities. The item also includes time deposits with a term of more recognised to the extent that it is probable that future taxable changes in values are not recognised in profit or loss, but than three months, recognised at nominal value. profit will be available against which they can be utilised. rather are reported as other comprehensive income under Inventories Deferred tax assets and liabilities are disclosed net in the available-for-sale reserve until the item is disposed of The merchandise recognised under inventories is measured Cash and cash equivalents the consolidated statement of financial position, if there is a or the impairment loss reversed. Permanent or significant at the lower of cost or net realisable value in accordance with Cash and cash equivalents comprise cash on hand, bank balances legally enforceable right to offset current tax liabilities and impairment losses are recognised in profit or loss. IAS 2. Cost is calculated according to the weighted average cost and short-term deposits. the deferred taxes relate to the same taxable entity and the The DEKRA Group uses this category for some of method. Net realisable value is the estimated selling price in the same taxation authority. Accordingly, offsetting is carried out its financial assets. ordinary course of business, less estimated costs of completion Deferred taxes and income taxes at entity and tax group level. and the estimated costs necessary to make the sale. Deferred taxes are recognised for all temporary differences IAS 39 provides for two categories for financial liabilities: between the carrying amounts in the tax accounts and the IFRS Impairment losses and reversals of impairment losses consolidated financial statements – with the exception of good- The carrying amounts of the assets that fall under the scope of Financial liabilities at fair value through profit or loss will resulting from acquisition accounting that cannot be recog- IAS 36 are tested on each reporting date for indications that an Derivates with negative fair values must be assigned to this nised for tax purposes – and for unused tax losses. Deferred tax asset may be impaired. If such indications are found to exist, the category, unless they are recognised as part of an effective assets are only considered to the extent that it is sufficiently recoverable amount of the asset concerned is estimated. If the hedge. All liabilities held for speculative purposes also probable that they will be realised. Probable usability is based recoverable amount of the asset is lower than its carrying amount, belong to this category. Other liabilities can optionally be on a multi-year plan for the respective entity. Deferred taxes are an impairment loss must be recognised to reduce the carrying assigned to this category (in the same way as “financial calculated using the respective local tax rate. Changes to tax rates amount to the recoverable amount. Impairment losses recognised assets at fair value through profit or loss”). adopted by the reporting date are taken into account when in prior years must be reversed when there is a change in estimate Measurement is the same as for “financial assets at calculating deferred taxes. and the recoverable amount is higher than the carrying amount. fair value through profit or loss”. This does not apply to acquired goodwill. The DEKRA Group only uses this category for derivatives. 44 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 45 Impairment tests must also be carried out at each report- No impairment losses or reversals of impairment losses Other provisions Accounting judgments and estimates ing date for goodwill, intangible assets with indefinite useful were necessary in the fiscal year. Provisions are recognised in the amount required, based on a In applying the accounting policies, the management board has lives and intangible assets that are not yet available for use. The impairment tests carried out are mainly based on best estimate, to cover all present obligations as of the reporting made the following judgments which have a significant effect on However, the test can be carried out at any time during the estimates. Various scenarios were therefore worked out for date. Future events that may affect the amount required to settle the amounts recognised in the consolidated financial state- year. Because goodwill and other intangible assets cannot be the individual cash-generating units. The main estimates were an obligation are reflected in provisions when they can be fore- ments: sold independently and cannot generate cash flows indepen- the future net cash flows, growth rates and the weighted aver- cast with a sufficient degree of objective certainty and when these The consolidated financial statements include assumptions dently of other assets, impairment tests can only be carried age cost of capital used. Even if the estimates should change, obligations result from past transactions. In addition, provisions and estimates which have had an effect on the carrying amounts out in connection with the related cash-generating unit. we currently expect the recoverable amount to exceed the for potential losses for onerous contracts are recognised in and recognition of assets and liabilities as well as income and The cash-generating units relevant for the goodwill carrying amount of goodwill. accordance with IAS 37. expenses. Actual amounts may differ from the amounts based impairment tests are defined at business unit level. The DEKRA The provision is measured at the most probable amount on these estimates and assumptions. Automotive, DEKRA Industrial and DEKRA Personnel busi- Non-current assets held for sale of a range of expected values. Where possible, it is determined In particular, assumptions and estimates were made ness units were identified as the smallest cash-generating The DEKRA Group had no non-current assets held for sale as of and measured using contractual agreements; otherwise concerning the uniform group-wide useful lives of non-cur- units, which largely generate cash flows independently. This December 31, 2009. calculations are based on past experience and estimates by rent assets, goodwill impairment, the recoverability of receiv- is due to single management, shared customer service, uniform the management board. ables, the adequate valuation of securities, the parameters for product policy and a joint advertising strategy, as well as joint Pensions and other post employment benefits Non-current provisions are recognised at present value measuring pension and other provisions, and the recover- monitoring and management at business unit level. Provisions for pensions and similar obligations are calculated and discounted at market interest rates that match the risk ability of deferred tax assets. With regard to assumptions In the impairment test, the carrying amount of a cash- according to the projected unit credit method prescribed by IAS and the period to realisation. concerning goodwill impairment, please refer to the comments generating unit is compared with the higher of its net disposal 19. This method primarily takes into account the relevant long- above. proceeds and its value in use (present value of future cash term capital market interest rate and current assumptions about Revenue recognition The obligation from defined benefit pension commitments flows). The carrying amount of a cash-generating unit includes future increases in salaries and pensions, in addition to biomet- Revenue is posted as income when the service is rendered. and the pension costs of the subsequent year are determined the carrying amount of those assets that can be allocated ric bases of calculation. Actuarial gains and losses are recognised Services are recognised according to their percentage of comple- based on actuarial parameters. Increasing or reducing the directly or indirectly on a reasonable and consistent basis to using the corridor method with a corridor of 10%. The interest tion, if the requirements pursuant to IAS 18.20 et seq. are met. discount rate by 0.25% would result in a decrease or increase in the cash-generating unit and will generate the future cash portion contained in the pension expense and expected return The percentage of completion is determined in accordance with pension obligations of 3.33%, i.e., approximately 15.2 million inflows. on the plan are disclosed in the financial result. the cost-to-cost method. euros, which due to the use of the corridor method pursuant If the net sales proceeds and the present value of the Pension commitments are determined taking into Dividends are recognised when the right to receive to IAS 19.92, would not significantly impact on the statement cash flows of a cash-generating unit are lower than its carry- account the biometric data in accordance with recognised payment arises. of financial position or the statement of comprehensive income. ing amount, the impairment expense recognised in profit or mortality tables. Actuarial reports are obtained for the calcu- For all financial assets and liabilities recognised at In addition, deviations between the assumed and actual in- loss is allocated to the individual assets of the cash-generating lation of the pension provisions. amortised cost, interest is recognised in accordance with the creases in salaries and pensions and between the expected unit. This allocation is made in proportion to the individual effective interest method. and actual return on plan assets have an impact in the relevant assets’ share in the cash-generating unit’s carrying amount. fiscal year. If goodwill is assigned to the cash-generating unit, any Government grants identified impairment expense is first assigned to goodwill In accordance with IAS 20, government grants are only recog- and is then allocated proportionately to the other assets of nised where there is reasonable assurance that all attaching condi- the cash-generating unit. tions will be complied with and the grant will be received. They are recognised directly in profit or loss as of the date the subsi- dised expenses are incurred, unless they relate to subsidies for an asset. Government grants are disclosed gross under other operating income. 46 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 47 5 Business Combinations this business combination was paid in cash. In addition to Presentation of significant business combinations Revenue by segment synergy effects, the goodwill arising includes intangible assets after the reporting date IN KEUR 2009 2008 Presentation of significant business combinations that cannot be measured separately from goodwill such as Under the purchase agreement dated March 25, 2010, a sig- in the fiscal year the workforce. KEMA Quality B.V., Netherlands, and its nificant corporate transaction was executed with ÅF-Kontroll Vehicle Testing 663,029 621,444 Effective as of January 1, 2009, a subsidiary of DEKRA AG, consolidated subsidiaries were included in the consolidated AB, Stockholm, Sweden, and another subsidiary, or sub-group Expertise 218,617 202,950 Stuttgart, acquired 67.8% of the shares in Volchi Participacoes financial statements of DEKRA AG, Stuttgart, in the fiscal acquired in the Industrial Services business unit. Control was Used Car Management 46,099 39,005 Ltda., Brazil. The purchase price including ancillary costs year with revenue of 9.3 million euros. The KEMA Group transferred to DEKRA AG upon acquisition of the entity, since (0.2 million euros) amounted to 15.4 million euros, with acquired contributed earnings before taxes of 0.1 million euros to group no conditions precedent were agreed. The purchase price for the Homologation and Type Approval 17,145 16,157 net assets of 1.3 million euros. As of the date of acquisition, profit. The transaction resulted in total cash and cash equiv- entire ÅF-Kontroll Group is 56.9 million euros. Due to time Consulting and Mystery Shopping 8,893 13,170 the carrying amounts of the acquired assets and liabilities alents of 3.1 million euros flowing to the DEKRA Group. The constraints, no purchase price allocation has yet been made. Claims Services 25,127 15,222 amounted to 5.0 million euros and 3.7 million euros, respectively. KEMA Group was primarily acquired to further expand the Other automotive income 45,575 39,929 Under the purchase price allocation, intangible assets of 6.3 mil- Industrial Services business unit. 6 Statement of Comprehensive Income/ Automotive Services 1,024,485 947,877 lion euros and deferred taxes of 2.1 million euros were recognised. Prior to acquisition by DEKRA, the KEMA Quality B.V. Income Statement The resulting goodwill as of January 1, 2009 amounted to Group reported revenue of 49.2 million euros for the period The statement of comprehensive income has been prepared using Machinery and plant Safety 164,999 170,002 13.1 million euros. The purchase price for this business combina- from January 1 to October 31, 2009 and profit for the year the nature of expense method. Income and expenses attributable Energy and process Industries 28,268 6,544 tion was paid in cash. In addition to synergy effects, the goodwill under local GAAP of 3.2 million euros. It would not have to the fiscal year are recognised in profit or loss. Non-owner- Health, Safety and Environment (HSE) 65,521 64,457 arising includes intangible assets that cannot be measured sepa- been possible to determine the comparative figures under based transactions reported as other comprehensive income Buildings and Facilities 81,323 72,585 rately from goodwill, such as the workforce. Volchi Participacoes IFRSs without undue cost or effort. are presented after the income statement (one statement product Testing and Certification 6,201 547 Ltda., Brazil, and its subsidiaries were included in the consolidated Other business combinations in 2009 were immaterial approach). Systems Certification 29,084 25,336 financial statements of DEKRA AG in the fiscal year with revenue overall. Other industrial income 3,848 889 of 25.7 million euros. The sub-group, including the Brazilian 6.1 Revenue holding company DEKRA do Brasil Participacoes Ltda., Brazil, Presentation of significant business combinations in the Revenue is broken down by business units or service lines that Industrial Services 379,244 340,359 contributed profit before taxes of 2.6 million euros to group prior year apply internationally throughout the Group. The revenue results Qualification 201,666 173,164 profit. The acquisition resulted in total cash and cash equivalents In addition to Polartest Oy, Finland, the main business combina- from ordinary activities. Temporary Work 89,914 120,456 of 1.3 million euros flowing to the DEKRA Group. The transaction tions in 2008 were the Bartok Group, Netherlands, Ambio S.A., Revenue also includes income from unbilled Out- and Newplacement 11,000 9,189 was largely carried out in order to enter into the Brazilian market Spain (Ambio) and GKK Gutachterzentrale GmbH (GKK), service contracts as of year-end of KEUR 4,097 (prior year: of vehicle inspections and valuations. Accordingly, the sub-group Dusseldorf, with purchase prices including incidental costs total- KEUR 3,831), which are recognised according to their Other personnel income 2,716 2,620 was allocated to the Automotive Services business unit. ling 66.8 million euros and resulting goodwill of 42.5 million percentage of completion. Personnel Services 305,296 305,429 Effective as of October 30, 2009, a subsidiary of DEKRA euros overall. Polartest Oy was included in the consolidated Other 993 2,151 AG, Stuttgart, acquired 100% of the shares in KEMA Quality financial statements from December 31, 2008, the Bartok B.V., Arnheim, Netherlands. The purchase price including Group from October 1, 2008, GKK from April 1, 2008 and incidental costs (0.6 million euros) amounted to 73.7 million Ambio from April 1, 2008. Polartest Oy contributed revenue of 1,710,018 1,595,816 euros, with acquired net assets of 20.3 million euros. As of 21.0 million euros to group revenue in 2009. The Bartok Group the date of acquisition, the carrying amounts of the acquired contributed revenue of 30.5 million euros (prior year: 7.1 million assets and liabilities amounted to 27.5 million euros and euros), Ambio 6.2 million euros (prior year: 4.5 million euros) Of the revenue, 1,235.7 million euros (prior year: 1,210.8 million 7.2 million euros, respectively. Under the purchase price and GKK 14.6 million euros (prior year: 12.8 million euros) to euros) relates to Germany and 474.3 million euros (prior year: allocation, intangible assets of 34.2 million euros, other assets group revenue. 385.0 million euros) to other countries. of 2.4 million euros, and deferred taxes of 10.3 million euros were recognised. The resulting goodwill as of October 30, 2009 amounted to 27.0 million euros. The purchase price for 48 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 49 6.2 Other operating income Pension expenses also include employer contributions to the 6.7 Financial result Interest expenses less expected income from plan Other operating income of 25.2 million euros (prior year: 19.1 statutory pension insurance fund of 51.4 million euros (prior year: The financial result breaks down as follows: assets from pension provisions results from interest expenses million euros) includes income from employer’s pension liability 50.5 million euros). The majority of Group employees are salaried arising from pension obligations of KEUR 23,705 (prior year: IN KEUR 2009 2008 insurance, positive currency effects of KEUR 3,089 (prior year: employees. KEUR 21,889) and expected return on the plan of KEUR 180 KEUR 202) and a large number of individual items. An amount Investment result from accounted for (prior year: KEUR 167). of KEUR 278 (prior year: KEUR 534) relates to income from the The Group’s employees are distributed as follows: using the equity method companies 289 515 Other interest expenses of KEUR 4,093 (prior year: disposal of fixed assets. Other operating income also includes Other investment result 26,990 1,556 KEUR 8,048) relate to the servicing of participation capital, A N N U A L AV E R A G E 2009 2008 outplacement and wage subsidies totalling KEUR 6,410 (prior the utilisation of credit lines and guarantees, and a loan from Expenses from investments and shares year: KEUR 5,432). Segment DEKRA Automotive 9,123 8,618 in associates – 2,403 – 205 DEKRA AG repaid in 2009. Segment DEKRA Industrial 4,661 4,591 Result from securities 567 – 4,104 6.3 Cost of materials 6.8 Income taxes Segment DEKRA personnel 5,330 6,469 Result from loans – 111 – 766 Cost of materials breaks down as follows: Income taxes include taxes paid or owed on income as well as DEKRA AG 329 330 Investment and other financial result 25,332 – 3,003 deferred taxes. IN KEUR 2009 2008 Total 19,443 20,008 Tax allocations to DEKRA e. V. of 12.6 million euros Interest income 9,376 11,115 Cost of purchased services (prior year: 16.6 million euros) are also recognised under 195,520 156,942 Interest expense income taxes. The resulting receivables and liabilities are Cost of purchased merchandise 21,792 18,098 Other interest expenses – 4,093 – 8,048 6.5 Other operating expenses included under receivables and liabilities to affiliates. 217,312 175,040 Interest expenses less expected Other operating expenses of 363.7 million euros (prior year: income from plan assets – 23,525 – 21,722 IN KEUR 2009 2008 327.5 million euros) chiefly include premises expenses of Interest result – 18,242 – 18,655 92.9 million euros (prior year: 85.2 million euros), administrative Current taxes 25,279 26,857 expenses of 65.2 million euros (prior year: 59.7 million euros), Financial result 7,089 – 21,658 Deferred taxes 6.4 Personnel expenses travel expenses of 59.9 million euros (prior year: 58.3 million Temporary differences – 1,775 780 euros) and vehicle costs of 28.9 million euros (prior year: IN KEUR 2009 2008 Unused tax losses – 290 384 26.7 million euros). Other operating expenses also contain negative exchange differences of 0.3 million euros (prior year: KEUR 289 (prior year: KEUR 515) of the income from companies 23,214 28,021 Wages and salaries 835,300 790,504 0.3 million euros). accounted for using the equity method related to the recognition Social security costs (excl. pension insurance premiums) 115,034 111,701 of profit shares of Euro Transport Media Verlags- und Veranstal- pension costs 72,283 62,019 6.6 Depreciation, amortisation and impairment losses on tungsgesellschaft mbH, Stuttgart, Germany, JUAN A. CALZADO Current tax expense includes tax items of KEUR 1,710 relating property, plant and equipment and intangible assets Comisariado de Averías S.A., Barcelona, Spain, and JUAN to other periods (prior year: tax income from prior years: 1,022,617 964,224 The composition of depreciation, amortisation and impairment A. CALZADO Comisariado de Averías S.A., Lisbon, Portugal. KEUR 2,151). losses results from the development of non-current assets. The other investment result primarily comprises gains As of the reporting date, the DEKRA Group disclosed from the disposal of investments. KEUR 1,137 of unused tax losses, which resulted in deferred The interest income primarily relates to time deposits taxes of KEUR 290. The respective local tax rate was used in (KEUR 4,820; prior year: KEUR 7,964) and securities held each case. for sale (KEUR 4,241; prior year: KEUR 2,612). The result from securities includes overall impairment losses of KEUR 623 (prior year: KEUR 2,843) and reversals of impairment losses of KEUR 240 (prior year: zero). 50 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 51 Deferred taxes from valuation adjustments were deter- No deferred taxes were recognised on retained earnings The following tax reconciliation clarifies the difference between Deferred income tax liabilities and current income mined using local tax rates, e.g., 30.5% (prior year: 30.5%) from subsidiaries, since the profits are to remain invested in the effective tax expense according to the statement of compre- tax liabilities for Germany, 33.3% (prior year: 34.4%) for France, and 25.5% the subsidiaries for the meantime. hensive income and the tax expense that would theoretically Tax liabilities arise mainly from deferred tax liabilities as well as for the Netherlands. arise if the tax rate of the DEKRA Group were to be applied to from effective tax obligations. The recognition and measurement consolidated earnings before taxes. As in the prior year, the differences determined from adjustments of the commercial The deferred taxes as of December 31, 2009 break down as DEKRA AG Group’s tax rate is 30.525%. statements of financial position of the consolidated companies follows: to IFRSs and consolidation entries recognised in profit or loss, IN KEUR 2009 2008 which resulted in deferred tax assets or liabilities, are presented DEFERRED TAx ASSETS DEFERRED TAx LIABILITIES Consolidated result before in the table on the left side. income taxes 101,726 99,871 Current tax liabilities mainly relate to income tax liabil- IN KEUR 31.12.09 31.12.08 31.12.09 31.12.08 Expected tax expense (30.525%) 31,052 30,486 ities of foreign entities. The tax allocations to DEKRA e. V. Non-current assets 3,508 3,756 27,342 16,607 are included under liabilities to affiliates. Losses for which no deferred taxes Current assets 1,957 1,353 1,286 1,147 were recognized 383 531 Difference from foreign tax rates 247 133 6.9 Statement of comprehensive income Non-current liabilities The group profit for the period under IFRSs stood at 78.5 million pension provisions 26,358 28,527 5 5 Tax-free income – 11,669 – 3,276 euros (prior year: 71.9 million euros). This serves as a basis for Other non-current liabilities 3,779 3,986 536 256 Non-deductible expenses 2,070 2,305 developing the income statement into the statement of compre- Current liabilities 5,860 4,355 0 0 Tax items relating to other periods 1,710 – 2,151 hensive income. In addition to the increase in fair values of 41,462 41,977 29,169 18,015 Other tax effects – 579 –7 available-for-sale securities after taxes of 6.9 million euros (prior Effective tax expense 23,214 28,021 year: 2.5 million euros), other comprehensive income includes Offsetting at tax group level – 10,107 – 8,118 – 10,107 – 8,118 income from foreign currency translation of 0.3 million euros Deferred taxes on temporary valuation differences 31,355 33,859 19,062 9,897 (prior year: expenses of – 0.4 million euros). Deferred taxes on unused tax losses 290 0 0 0 Deferred income tax assets The Group has unused tax losses of KEUR 2,509 (prior year: 7 Statement of Financial Position KEUR 1,025), for which no deferred taxes were recognised, since 31,645 33,859 19,062 9,897 it is not yet sufficiently probable that they will be usable for Non-current assets tax purposes. Deferred tax assets and liabilities were offset at tax group 7.1 Intangible assets level where the requirements for offsetting pursuant to IAS 12.74 In addition to goodwill, items include a customer base acquired were met. for a consideration, franchises, industrial and similar rights and The decrease in deferred taxes of KEUR –1,516 (prior year: assets, and internally generated intangible assets (IT develop- increase of KEUR 460) was reported in other comprehensive ments). income. The additions to amortisation are recognised under the item “Depreciation, amortisation and impairment losses”. Research and development costs incurred in the fiscal year were insignificant. Amortisation and impairment losses on intangible assets included impairment losses of KEUR 2,053 (prior year: zero), relating to a trademark and software. 52 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 53 IN KEUR acquired intangible aSSetS Goodwill The recoverable amount of the cash-generating unit Accumulated goodwill amortisation up to and including 2007, was determined using the value in use of the relevant unit. Goodwill Franchises, Other intan- Internally Advance Total industrial and gible assets generated payments and prior to application of IFRSs, was offset against cost. Cash flow forecasts are based on detailed plans by management, similar rights intangible intangible Goodwill primarily includes goodwill from the acquisi- covering a three-year planning period. Management’s plans assets assets under development tion of shares in DEKRA Industrial S.A. (formerly: NORISKO reflect past experience and expectations of future market S.A.) Limoges, France, KEMA Quality B.V., Arnheim, Nether- developments. Cash flows after the three-year period were Cost as of 01.01.08 66,875 69,614 5,823 0 1,205 143,517 lands, Polartest Oy, Vantaa, Finland, which were allocated to extrapolated taking into account estimated growth rates of 1% Exchange difference on opening balance 0 – 13 0 0 0 – 13 the cash-generating unit DEKRA Industrial, and Volchi (prior year: 1%). The estimated growth rates came from forecasts Exchange difference in current year – 68 –8 0 0 0 – 76 Participacoes Ltda., Brazil, and the Bartok Group, Netherlands, by the Company. For Automotive Services and Industrial which were assigned to the cash-generating unit Automotive Services, future cash flows were discounted using a risk-adjusted Additions 61,557 1,595 6,941 1,530 1,383 73,006 Services. Of the goodwill, 51 million euros (prior year: interest rate after tax of 6.7% (prior year: 8.2%) and for Per- Additions to the consolidated group 113 287 21,030 0 0 21,430 34 million euros) relates to DEKRA Automotive, 121 million sonnel Services of 9.5% (prior year: 9.8%). Disposals – 1,840 – 1,505 –1 0 0 – 3,346 euros (prior year: 92 million euros) to DEKRA Industrial A 10% decrease in the expected cash flows underlying Reclassifications 1,347 261 0 0 – 1,563 45 and 2 million euros (prior year: 2 million euros) to DEKRA the value in use calculation for the cash-generating unit would As of 31.12.08/01.01.09 127,984 70,230 33,793 1,530 1,025 234,562 Personnel. not result in any impairment losses. For more information, please refer to the presentations Exchange difference on opening balance 4 3 0 0 0 7 in the descriptive section of the notes on impairment losses. Exchange difference in current year – 15 2 46 0 0 33 Additions 4,806 3,828 3,129 0 1,822 13,585 Additions to the consolidated group 41,307 16 40,693 501 0 82,517 Disposals – 226 – 1,856 0 0 0 – 2,082 Reclassifications 0 1,210 – 42 0 – 1,007 161 As of 31.12.09 173,860 73,433 77,619 2,031 1,840 328,783 Amortisation and impairment losses as of 01.01.08 0 – 44,405 – 4,333 0 0 – 48,738 Exchange difference on opening balance 0 7 0 0 0 7 Exchange difference in current year 0 5 0 0 0 5 Additions 0 – 6,753 – 2,141 – 91 0 – 8,985 Disposals 0 1,505 0 0 0 1,506 Reclassifications 0 –1 0 0 0 –1 As of 31.12.08/01.01.09 0 – 49,642 – 6,474 – 91 0 – 56,206 Exchange difference on opening balance 0 –2 0 0 0 –2 Exchange difference in current year 0 –3 – 60 –2 0 – 65 Additions 0 – 8,829 – 6,710 – 180 0 – 15,719 Disposals 0 1,844 0 0 0 1,844 As of 31.12.09 0 – 56,632 – 13,244 – 273 0 – 70,148 Carrying amount as of 31.12.09 173,860 16,802 64,376 1,759 1,840 258,635 Carrying amount as of 31.12.08 127,984 20,588 27,320 1,439 1,025 178,356 Carrying amount as of 01.01.08 66,875 25,209 1,490 0 1,205 94,779 54 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 55 7.2 Property, plant and equipment 7.3 Financial assets accounted for using the 7.5 Other non-current assets equity method Other assets break down as follows: IN KEUR The financial statements of companies accounted for using the IN KEUR 31.12.09 31.12.08 Land and plant and Other equipment, prepayments Total equity method provide the following financial information, which buildings machinery furniture and assets under was not adjusted in line with the Group's interest and for reasons Reimbursement claims in accordance and fixtures construction of materiality, was not adjusted in line with IFRSs: with IAS 19.104a 104,048 86,134 Cost as of 01.01.08 84,275 71,032 134,546 770 290,622 IN KEUR 31.12.09 31.12.08 Other non-current assets 2,728 1,856 Exchange difference on opening balance – 109 21 – 24 1 – 111 106,776 87,990 Aggregated assets 7,746 7,751 Exchange difference in current year – 33 – 36 68 6 5 Aggregated liabilities 5,988 5,935 Additions 5,926 6,076 15,678 570 28,249 Additions to the consolidated group 6,634 3,549 2,386 4 12,572 Due to the close relationship between reimbursement claims and Disposals – 503 – 1,816 – 11,962 – 13 – 14,293 pension obligations, please refer to the comments on pensions. IN KEUR 31.12.09 31.12.08 Reclassifications – 145 – 970 1,734 – 665 – 47 As of 31.12.08/01.01.09 96,044 77,855 142,426 674 316,998 Current assets Aggregated revenue 15,926 18,410 Exchange difference on opening balance 32 6 – 50 –1 – 12 Aggregated profit for the period 603 872 7.6 Inventories Exchange difference in current year 0 2 –8 1 –4 IN KEUR 31.12.09 31.12.08 Additions 2,537 6,002 13,087 930 22,557 Additions to the consolidated group 237 3,531 1,158 0 4,925 7.4 Other non-current financial assets Raw materials, consumables and supplies 618 677 Disposals – 98 – 1,067 – 6,076 – 49 – 7,289 IN KEUR 31.12.09 31.12.08 Work in progress 2,191 1,665 Reclassifications 700 2 – 25 – 838 – 162 Shares in affiliates (at cost) 12,998 9,965 Merchandise 1,187 1,108 As of 31.12.09 99,452 86,331 150,512 718 337,013 Other investments 6,130 6,183 3,996 3,450 Depreciation and impairment losses Loans to affiliates 922 2,365 as of 01.01.08 – 28,099 – 49,213 – 99,731 –4 – 177,047 Loans to investees and investors 1,987 0 Exchange difference on opening balance 4 – 26 6 0 – 16 Other loans 3,577 7,576 7.7 Trade receivables Exchange difference in current year 16 49 – 55 0 10 Available-for-sale securities 111,230 104,759 Foreign currency receivables are initially translated at the Additions – 3,189 – 5,287 – 10,613 0 – 19,090 Other non-current financial assets 6,183 98 exchange rate on the transaction date in accordance with IAS 21.21; Disposals 316 1,749 11,144 4 13,213 143,027 130,946 they are subsequently measured at the closing rate in accordance Reclassifications 398 899 – 1,300 0 –3 with IAS 21.23. The difference is recognised in profit or loss. As of 31.12.08/01.01.09 – 30,554 – 51,830 – 100,549 0 – 182,932 IN KEUR 31.12.09 31.12.08 Exchange difference on opening balance –8 –7 35 0 20 Available-for-sale securities primarily increased due to the Nominal value of trade receivables 252,242 242,841 Exchange difference in current year – 18 0 0 0 – 18 positive development of fair values. The change in value is mainly Additions – 3,660 – 6,374 – 11,426 0 – 21,460 Receivables from percentage of reported in the statement of comprehensive income in the avail- completion 17,592 13,190 Impairment loss 0 0 –1 0 –1 able-for-sale reserve. In fiscal year 2009, impairment losses of Specific bad debt allowances – 11,562 – 8,964 Disposals 105 871 5,568 0 6,544 0.6 million euros (prior year: 2.8 million euros) were recognised 258,272 247,067 Reclassifications – 61 1 59 0 –1 in profit or loss. The increase in shares in affiliates at cost resulted As of 31.12.09 – 34,197 – 57,338 – 106,314 0 – 197,848 from the acquisition of additional subsidiaries in 2009. Carrying amount as of 31.12.09 65,255 28,993 44,198 718 139,164 Carrying amount as of 31.12.08 65,489 26,025 41,878 674 134,066 Carrying amount as of 01.01.08 56,176 21,819 34,814 766 113,575 56 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 57 The maturities break down as follows: 7.11 Equity 7.13 Pensions and other post employment benefits For information on the development of equity, please see the 31.12.09 Thereof not 31.12.08 Thereof not IN KEUR 31.12.09 31.12.08 IN KEUR impaired impaired statement of changes in equity. The capital stock of DEKRA AG remains unchanged pension provisions in Germany 435,934 417,724 Not past due 193,398 192,615 178,018 177,980 at KEUR 25,565. It is divided into 10,000,000 no-par value pension provisions in other countries 3,306 3,156 past due by between 1 and 90 days 45,954 44,718 44,157 42,556 bearer shares. 439,240 420,880 past due by between 91 and 180 days 9,178 6,575 9,935 6,728 The capital reserve of KEUR 190,529 (prior year: past due by more than 180 days 21,304 4,984 23,920 12,989 KEUR 130,529) mainly includes contributions from DEKRA e.V., Stuttgart. As in the prior year, a contribution was made 269,834 248,892 256,030 240,253 to the capital reserve in the fiscal year. The Group has both defined benefit and defined contribution Revenue reserves contain the group profit for the period plans for commitments for retirement, invalidity and survivors’ and the profits of consolidated companies generated in prior pensions based on works agreements and individual contractual Bad debt allowances on trade receivables developed as follows: The decrease in available-for-sale securities is due to the sale years to the extent not distributed or transferred. There is a agreements. These pension plans grant pension benefits, the level of securities. The other financial assets primarily include time profit and loss transfer agreement in place between DEKRA of which depends on the length of service and eligible income. IN KEUR 2009 2008 deposits with a term of more than three months. AG and the parent. The profit transfer is reported in other The pension is paid in part directly by the companies that make Bad debt allowances as of 01.01. 8,964 6,976 comprehensive income as a transaction with the equity inves- the pension commitments and in part by a legally independent 7.9 Other current assets tor. The difference between the HGB result and the IFRS result welfare fund (DEKRA Unterstützungskasse e. V.). The obligations Allocations 6,360 5,389 This item includes prepaid expenses and sundry other non- is recorded in the revenue reserves. and the assets relating to the consolidated member companies Utilisation – 77 – 190 financial assets. Accumulated other comprehensive income still includes are included in these consolidated financial statements. Both direct Reversal – 3,685 – 3,211 the fair-value changes from the measurement in other com- and indirect commitments are defined benefit obligations, which Bad debt allowances as of 31.12. 11,562 8,964 7.10 Cash and cash equivalents prehensive income of available-for-sale securities, the deferred are partly financed by employer’s pension liability insurance. The development of cash and cash equivalents as defined by taxes recognised in other comprehensive income, and the The pension provisions in other countries chiefly relate IAS 7 is presented in the statement of cash flows. foreign currency translation differences reported in other to defined benefit plans and one-off termination benefits when Expenses incurred for the allocation to specific bad debt allow- comprehensive income. employees commence retirement. ances are included under other operating expenses. Cash and cash equivalents break down as follows: As of the reporting date, issued shares had all been The defined benefit obligations are generally calculated Other financial assets do not include any significant past fully paid in. annually by independent actuaries using the projected IN KEUR 31.12.2009 31.12.2008 due assets that are not impaired. unit credit method. The 2005 G mortality tables of Dr. Klaus Cash on hand 1,844 785 7.12 Minority interests Heubeck are used for the German pension obligations 7.8 Other current financial assets For the change in minority interests, please refer to the statement and for the foreign obligations, recognised mortality tables Cash at banks 47,510 36,161 of changes in equity. are used. IN KEUR 31.12.2009 31.12.2008 Time deposits < 3 months 2,448 3,777 Minority interests mainly exist in the following entities: For individual foreign entities, there are multiemployer 51,802 40,723 Volchi Participacoes Ltda., Brazil, DEKRA Revisioni Italia plans for defined benefit plans, for which insufficient informa- Available-for-sale securities 24,178 48,918 S.r.l., Arese, Italy, and SLOVDEKRA s.r.o., Slovak Republic. tion is available. Receivables from affiliates, investees and investors 18,629 24,655 In the prior year, there were also minority interests in Cash at banks includes short-term deposits with terms of up the following entities: DEKRA Personaldienste GmbH, Other financial assets 51,592 60,038 to three months. DEKRA Claims Services International N.V., DEKRA NORISKO 94,399 133,611 At present, no cash and cash equivalents are past due Holdings South Africa Ltd., C.T.A. SARL, DEKRA Expertise that are not impaired. SAS, and DEKRA Services Maroc. If the minority interests are negative due to negative comprehensive income of sub- sidiaries, no further allocations are made to the minority interest in accordance with the revised IAS 27. 58 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 59 Defined benefit plans The defined benefit obligation includes total obligations of Fair value of plan assets Funding status and reconciliation of items of the statement 16.9 million euros, for which there are matching plan assets. of financial position IN KEUR 31.12.09 31.12.08 IN KEUR 31.12.09 31.12.08 For the remaining obligations, there are no plan assets, but rather IN KEUR 31.12.09 31.12.08 Defined benefit obligations as of 01.01. 438,875 406,516 reimbursement rights in accordance with IAS 19.104a. For Fair value as of 01.01. 13,602 4,669 the coming year, pension payments of 16.8 million euros are Defined benefit obligation, Current service cost 9,877 9,524 Expected return on plan assets 180 167 expected. unfunded 442,189 424,880 Interest expense 23,706 21,889 Employer contributions 441 0 When calculating provisions according to the projected Defined benefit obligation partly or past service cost 572 5 unit credit method, the following parameters apply for the Advance payments – 181 0 wholly funded 16,937 13,995 Employee contributions 47 0 DEKRA Group: Change in the consolidated group 0 8,763 plan assets at fair value – 13,979 – 13,602 Change in the consolidated group 273 9,788 Actuarial gains (+)/losses (–) – 63 3 Net actuarial gains (+) and losses (–) Current pension payments – 14,862 – 13,240 Fair value as of 31.12. 13,979 13,602 not yet recognized in the statement of financial position – 5,586 – 4,394 Currency effects 2 0 past service cost not yet recognized in Actuarial gains (–)/losses (+) 636 4,393 The expected return on plan assets flows into the calculation the statement of financial position – 322 0 Defined benefit obligations as of 31.12. 459,126 438,875 of the fair value of the plan assets as of the reporting date. Reimbursement claims in accordance with IAS 19.104a – 104,048 – 86,134 The expected return is based on historical and anticipated future average returns in the considered asset categories, which Net pension obligations as of 31.12. 335,191 334,745 Key parameters can be compared with the expectations of external sources. The Other assets 104,048 86,134 effective return on the plan amounts to KEUR 117 (prior year: GERMANY OTHER COUNTRIES Provisions for pensions and similar KEUR 170). obligations 439,239 420,879 IN % 31.12.09 31.12.08 01.01.08 31.12.09 31.12.08 01.01.08 Fair value of the reimbursement claims in accordance Interest rate 5.50 5.50 5.50 2.00 – 8.90 5.30 – 5.60 5.00 – 5.60 with IAS 19.104a Increase in salaries 2.00 2.00 2.00 1.50 – 3.00 2.00 – 4.00 2.00 – 4.00 In addition to the plan assets, there are also reimbursement claims Other disclosures on pensions Increase in pensions 1.75 1.75 1.75 2.00 2.00 2.00 in accordance with IAS 19.104a, which as of December 31, 2009 IN KEUR 31.12.09 31.12.08 01.01.08 Employee turnover 4.00 4.00 4.00 0.50 – 6.00 0.50 – 6.00 0.50 – 6.00 have a fair value of 104.0 million euros (prior year: 86.1 million Expected return on plan assets 2.00 2.00 2.00 1.20 1.20 1.20 euros) and flow into the statement of comprehensive income Defined benefit with income of 2.0 million euros (prior year: 1.6 million euros). obligation 459,126 438,875 414,987 The expected reimbursement claims amount to 2.0 million euros. Fair value of the The turnover probability was taken into account on an individual were included in the consolidated financial statements through The reimbursement claims are from employer’s pension liability plan assets 13,979 13,602 4,377 basis depending on the length of service and age of the benefi- the consolidated member companies. The assets of the DEKRA insurance policies that do not meet the criteria for plan assets. Difference 445,147 425,273 410,610 ciary. Unterstützungskasse e. V. entities do not meet the criteria for The obligations in other countries are determined plan assets pursuant to IAS 19. Experience adjustments on plan assets – 63 3 0 taking into account country-specific measurement bases and For individual entities, pension commitments are parameters and are insignificant. financed through payments to an insurance company. The Experience adjustments on the defined benefit German pension commitments are partially financed resulting plan assets include exclusively qualifying insurance obligation 1,250 4,391 0 through the DEKRA Unterstützungskasse e. V. entities, which policies. 60 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 61 Presentation in the statement of comprehensive income Defined contribution plans IN KEUR Part of the pension costs relating to the majority of employees, IN KEUR 2009 2008 especially in Germany, is the statutory pension. For several As of Allocation Additions to Utilisation Reversal Reclassifi- As of 01.01.08 the consoli- cations 31.12.08 Personnel expenses German and foreign entities, there are voluntary, defined con- dated group tribution plans for post-employment benefits. Expenses related Current service cost 9,877 9,524 to defined contribution plans, including pension insurance Non‑current provisions past service cost 250 5 premiums, amounted to 54.5 million euros in the fiscal year Other personnel provisions 12,886 3,234 192 1,293 0 0 15,018 Amortized actuarial losses –5 0 (prior year: 51.2 million euros). The future amount of these phased retirement 11,463 2,895 0 1,145 0 0 13,213 expenses essentially depends on the development of the under- Interest Long-service awards 1,422 339 140 148 0 0 1,753 lying pension insurance systems. Interest 23,705 21,889 Sundry other personnel provisions 0 0 52 0 0 0 52 Expected return on plan assets – 180 – 167 Other non-personnel provisions 8,044 4,301 49 321 4,335 –3 7,735 20,930 7,535 241 1,614 4,335 –3 22,753 Income from employer’s pension liability insurance to be disclosed Current provisions as plan assets in accordance with IAS 19 was allocated to interest expense in the amount of KEUR 180 (prior year: KEUR 167). Other personnel provisions 2,415 568 239 577 678 0 1,967 Restructuring provisions 0 0 250 0 0 0 250 Other non-personnel provisions 6,934 1,138 67 239 2,980 3 4,923 7.14 Non-current and current provisions potential losses 4,827 461 0 159 2,417 – 1,119 1,593 Litigation costs 122 105 5 24 47 35 196 IN KEUR Sundry other non-personnel provisions 1,985 572 62 56 516 1,087 3,134 As of Allocation Additions to Utilisation Reversal Reclassifi- As of 01.01.09 the consoli- cations 31.12.09 9,349 1,706 556 816 3,658 3 7,140 dated group Non‑current provisions Other personnel provisions 15,018 12,337 871 8,960 151 102 19,217 The restructuring provision mainly relates to the restructuring phased retirement 13,213 11,594 0 8,730 0 0 16,077 within a sub-group and comprises almost entirely personnel- Long-service awards 1,753 291 871 230 151 0 2,534 related obligations resulting from restructuring. Sundry other personnel provisions 52 452 0 0 0 102 606 There are non-current obligations in relation to warran- Other non-personnel provisions 7,735 5,247 8,421 246 4,340 0 16,817 ties, the risks of which are covered by an insurance policy. 22,753 17,584 9,292 9,206 4,491 102 36,034 Upon calculating the provision, the reimbursement right was taken into account and not disclosed separately because Current provisions it would not have been possible to calculate it separately Other personnel provisions 1,967 1,398 2,349 572 534 0 4,608 without undue cost or effort. Restructuring provisions 250 5,666 0 175 0 0 5,741 Non-current provisions include discounting effects of Other non-personnel provisions 4,923 2,371 386 792 1,054 – 102 5,732 KEUR 909 (prior year: KEUR 947). Other provisions cover potential losses 1,593 613 135 125 455 0 1,761 all recognisable obligations to third parties in accordance with IAS 37. They are recognised in the amount that will probably Litigation costs 196 233 7 46 65 0 325 be required. Sundry other non-personnel provisions 3,134 1,525 244 621 534 – 102 3,646 7,140 9,435 2,735 1,539 1,588 – 102 16,081 62 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 63 7.15 Financial liabilities (non-current and current) The parent granted its managers and employees the 8 Statement of Cash Flows 9 Other Disclosures in the Notes option of subscribing to profit participation rights of up The statement of cash flows shows how the cash and cash equiva- Non-current financial liabilities to KEUR 10,737 (4.2 million profit participation rights at lents changed during the course of the fiscal year as a result of cash 9.1 Other financial obligations EUR 2.55645 each). Of this amount, a total of 3,606,898 (prior inflows and outflows. In accordance with IAS 7, a distinction is The following rental and lease obligations from operating IN KEUR 31.12.09 31.12.08 year: 3,686,111) profit participation rights were subscribed. made between cash flows from operating, investing and financing leases relate primarily to obligations from property leases and Liabilities to banks 7,958 10,584 The subscribed certificate capital ensures an investment in the activities. Cash flows from operating activities are determined vehicles. adjusted consolidated earnings of DEKRA AG with a mini- indirectly, whereas cash flows from investing and financing Financial liabilities to affiliates 0 193 mum return of 4% p.a. and a maximum return of 30% p.a. activities are determined directly. Operating leases Derivative financial instruments 1,336 1,337 The composition of cash and cash equivalents matches Lease liabilities 3,067 4,000 IN KEUR 31.12.09 31.12.08 7.16 Trade payables the net cash and cash equivalents disclosed in the statement of 12,361 16,115 Trade payables increased due to the increase in purchased financial position as of the reporting date. None of the cash and Rent and lease obligations in services. cash equivalents have restricted availability. the current year 98,857 89,977 The cash flow from operating activities includes the Residual term of less than 1 year 91,805 87,753 7.17 Other liabilities (non-current and current) following payments: Residual term of 1 to 5 years 157,776 163,934 Current financial liabilities Other non-current non-financial liabilities primarily include IN KEUR 31.12.09 31.12.08 Residual term of more than 5 years 58,081 63,483 liabilities to the pension guarantee association. IN KEUR 31.12.09 31.12.08 Total obligations for future years 307,662 315,170 – Interest paid – 3,943 – 6,120 Liabilities to banks 12,604 41,449 Other current liabilities break down as follows: + Interest received 11,970 8,262 profit participation rights 18,015 18,317 IN KEUR 31.12.09 31.12.08 + Dividends received 1,406 2,072 The rental and lease obligations of the current year include con- Financial liabilities to affiliates 21,625 17,269 – Income taxes paid – 30,470 – 21,034 personnel-related liabilities 105,407 113,461 tingent lease payments of 3.5 million euros each. Property leases Financial liabilities to associates 157 107 + Income taxes received 616 1,235 generally have residual terms of up to 15 years. Subleases only Deferred revenue 8,340 11,229 Financial liabilities to investees result in minimal lease income and are not expected to produce and investors 1,236 1,091 Other liabilities for taxes 40,162 37,666 significant amounts in the future. Derivative financial instruments 0 1 Advance payments 13,723 9,455 The cash flow from investing activities includes the following Lease liabilities 1,114 988 Social security 24,500 23,440 payments from the acquisition and sale of subsidiaries and other Property leases Liabilities to employees 16,407 19,139 Sundry other 7,938 4,179 entities: IN KEUR 31.12.09 31.12.08 Other financial liabilities 8,561 8,159 200,070 199,429 IN KEUR 31.12.09 31.12.08 79,719 106,521 Rental and lease obligations Total purchase/sale price – 63,978 – 87,848 in the current year 1,369 1,082 Personnel-related liabilities chiefly relate to outstanding variable thereof: interest portion 293 220 thereof settled in cash – 63,978 – 87,848 salary components, accrued vacation and other. Amount of cash and cash equivalents Residual term of less than 1 year 1,238 1,042 The decrease in liabilities to banks is chiefly the result of the Liabilities from taxes principally relate to VAT and acquired/disposed of 4,404 9,035 Residual term of 1 to 5 years 1,980 1,658 repayment of a syndicated loan in fiscal year 2009. wage tax. Amount of assets and liabilities Residual term of more than 5 years 1,696 1,760 The carrying amount of the liabilities is their fair value. acquired/disposed of Total obligations for future years 4,914 4,459 Non-current assets 87,806 95,885 Current assets 23,097 28,053 Non-current liabilities 12,035 20,653 Current liabilities 13,623 22,546 64 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 65 The difference from the total obligations for future years Cash management determines the required or surplus 12 Financial Instruments Net gains and losses mainly comprise interest income, dividends and the lease liabilities recognised of KEUR 4,181 (prior year: cash for all DEKRA entities. Timely account management IAS 39 requires financial assets and liabilities to be classified under and impairment losses as well as gains or losses on disposal. KEUR 4,988) is the present value difference. ensures that the necessary funds for payments are available one of the following categories: The available-for-sale reserve increased by 1.0 million In 2009, the Group reported other financial obligations where they are needed, with the aim of keeping external euros (prior year: 1.0 million euros) due to the sale of assets including purchase commitments of KEUR 6,241 (prior year: investing and lending to a minimum. a) Financial assets at fair value through profit or loss reported at fair value in other comprehensive income. Gains KEUR 5,948). Liquidity management ensures all payment obligations b) Loans and receivables and losses arising from changes in fair value amounting to In addition, there are agreements with insurance of the DEKRA Group are always met. To this end, the liquid- c) Held-to-maturity investments 7.5 million euros (prior year: 1.8 million euros) were reported companies, under which additional payments to employer’s ity planning determines cash flows from operating activities, d) Available-for-sale financial assets in other comprehensive income. pension liability insurance policies are agreed for partial secures foreseeable liquidity requirements at an early stage e) Financial liabilities at fair value through profit or loss coverage of pension obligations. For 2010, these allocations and invests surplus liquidity on the money market. f) Other liabilities The following table shows an allocation of our assets and liabil- to the employer’s pension liability insurance policies are Market price risk management is responsible for limit- ities at fair value to the three levels of the fair value hierarchy expected to amount to 16.2 million euros and will gradually ing the impact of interest rate and currency fluctuations on All financial assets of the DEKRA Group to be classified fall into (figures in KEUR): decrease over the coming years. the Group’s earnings. For this purpose, the market price risks the categories “Financial assets at fair value through profit or Level 1 Level 2 Level 3 Total are determined and used as a basis for hedging decisions. loss”, “Loans and receivables” or “Available-for-sale financial IN KEUR fair value 9.2 Contingent liabilities and other contingencies Such decisions include the selection of hedging instruments, assets”. All liabilities fall under the categories “Financial liabilities Contingent liabilities of KEUR 3,010 (prior year: KEUR 2,162) the volume to be hedged and the period to be covered. DEKRA at fair value through profit or loss” or “Other liabilities”. Financial assets at mainly include bank guarantees and contingencies from guar- used derivative financial instruments in the fiscal year to hedge fair value 48,214 90,794 0 139,008 antees. floating-rate finance arrangements and foreign currency The following table shows net gains/losses for each category: Derivative financial instruments (negative) 0 0 1,336 1,336 The DEKRA Group is not involved in any court proceed- liabilities from acquisitions. IN KEUR 31.12.09 31.12.08 ings that could have a significant influence on the economic or The risk volume covered in the management of default financial situation of the DEKRA Group. risk includes securities investments and the investment of Financial assets at fair value through The levels of the fair value hierarchy and their application to our cash and cash equivalents in financial institutions as part of profit or loss 1,192 631 assets and liabilities are described below: 10 Capital Management liquidity management, as well as the credit risk relating Loans and receivables 928 3,701 DEKRA pursues the goal of sustainably securing equity. The to end customers due to the concession and systematic Level 1: Market prices quoted on active markets for identical Financial assets reported at fair value aim is to achieve an appropriate debt-to-equity ratio with the monitoring of payment periods from trade. in comprehensive income 3,948 – 1,582 assets or liabilities improvement in the EBIT margin. Equity was strengthened Short-term investments of cash and cash equivalents are Financial liabilities at fair value Level 2: Other information than quoted market prices that can in the fiscal year by a contribution to the capital reserves of only made with top-rated financial institutions and on the through profit or loss – 457 – 777 be directly (e.g., prices) or indirectly (e.g., derived from 60 million euros. The DEKRA Group’s equity ratio amounted basis of current ratings of rating agencies as well as based on Liabilities at amortised cost – 3,661 – 5,534 prices) observed to 22% (prior year: 17%) as of year-end. current CDS spreads. To assess the creditworthiness of our 1,950 – 3,561 Level 3: Information relating to assets and liabilities that is not customers, commercial credit agencies are used and in cases based on observable market data 11 Financial Management of doubt, payment in advance or the pledging of bank guar- The Group’s financial management includes cash and liquidity antees are insisted upon. management as well as the management of market price risks (interest, currency) and of credit default risks. 66 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 67 The table below shows the breakdown of the items of the state- ment of financial position into categories/classes: IN KEUR IN KEUR Carrying Assets/ Loans and Available- Liabilities Carrying Assets/ Loans and Available- Liabilities amount liabilities receivables for-sale assets measured amount liabilities receivables for-sale assets measured 31.12.09 at fair value measured at reported at amortized 31.12.09 at fair value measured at reported at amortized through amortised at cost in cost through amortised at cost in cost profit or loss cost comprehensive profit or loss cost comprehensive income income Assets Equity and liabilities Non-current assets Non-current liabilities Shares in affiliates and investments 19,128 0 0 19,128* 0 Derivative financial instruments 1,336 1,336 0 0 0 Securities and loans 117,716 0 6,486 111,230 0 Financial liabilities 7,958 0 0 0 7,958 Derivative financial instruments 1 1 0 0 0 Finance lease liabilities 3,067 0 0 0 3,067** Other financial assets 6,182 0 6,182 0 0 12,361 1,336 0 0 11,025 143,027 1 12,668 130,358 0 Current liabilities Current assets Trade payables 54,184 0 0 0 54,184 Trade receivables 240,680 0 240,680 0 0 profit participation rights 18,015 0 0 0 18,015 Receivables from pOC 17,592 0 17,592 0 0 Derivative financial instruments 0 0 0 0 0 Cash and cash equivalents 51,802 0 51,802 0 0 Financial liabilities 12,604 0 0 0 12,604 Securities and loans 42,807 0 18,629 24,178 0 Liabilities to affiliates 23,018 0 0 0 23,018 Derivative financial instruments 0 0 0 0 0 Other current liabilities 24,968 0 0 0 24,968 Other financial assets 51,592 0 51,592 0 0 Finance lease liabilities 1,114 0 0 0 1,114** 404,473 0 380,295 24,178 0 133,903 0 0 0 133,903 547,500 1 392,963 154,536 0 146,264 1,336 0 0 144,928 * Includes available-for-sale assets measured at cost of KEUR 15,628. ** Measured in accordance with IAS 17. 68 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 69 IN KEUR IN KEUR present Assets/ Loans and Available- Liabilities present Assets/ Loans and Available- Liabilities value liabilities receivables for-sale assets measured value liabilities receivables for-sale assets measured 31.12.08 at fair value measured at reported at fair at amortised 31.12.08 at fair value measured at reported at fair at amortised through amortised value in cost through amortised value in cost profit or loss cost comprehensive profit or loss cost comprehensive income income Assets Liabilities Non-current assets Non-current liabilities Shares in affiliates and investees 16,148 0 0 16,148* 0 Derivative financial instruments 1,338 1,338 0 0 0 Securities and loans 114,700 0 9,941 104,759 0 Financial liabilities 10,777 0 0 0 10,777 Derivative financial instruments 3 3 0 0 0 Finance lease liabilities 4,000 0 0 0 4,000** Other financial assets 95 0 95 0 0 16,115 1,338 0 0 14,777 130,946 3 10,036 120,907 0 Current liabilities Current assets Trade payables 52,766 0 0 0 52,766 Trade receivables 233,876 0 233,876 0 0 profit participation rights 18,317 0 0 0 18,317 Receivables from pOC 13,190 0 13,190 0 0 Derivative financial instruments 1 0 0 0 1 Cash and cash equivalents 40,723 0 40,723 0 0 Financial liabilities 41,449 0 0 0 41,449 Securities and loans 73,573 0 24,655 48,918 0 Liabilities to affiliates 18,467 0 0 0 18,467 Derivative financial instruments 83 83 0 0 0 Other current liabilties 27,299 0 0 0 27,299 Other financial assets 59,955 0 59,955 0 0 Liabilities from finance leases 988 0 0 0 988** 421,400 83 372,399 48,918 0 159,287 0 0 0 159,287 552,346 86 382,435 169,825 0 175,402 1,338 0 0 174,064 * Includes available-for-sale assets measured at cost of KEUR 16,148. ** Measured in accordance with IAS 17. The majority of contractually agreed maturity dates for financial instruments measured at amortised cost are within 12 months after the reporting date. As such, their carrying amounts as of the reporting date approximately equate to their fair values. For all items of non-current financial assets and liabilities not recognised at fair value, the carrying amount is equal to the fair value. 70 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 71 Risks from financial instruments As of the reporting date, the contractually agreed undiscounted Credit risk (default risk) In relation to investing, interest rate fluctuations result financial liabilities broke down as follows (figures in KEUR): In the course of its operations, DEKRA is exposed to the risk of in changes in the fair values of fixed income securities. For Principles of financial management default on outstanding receivables. The DEKRA Group counters bonds most, and for shares all long-term investments are 2009 < 1 year 1 to 5 years > 5 years The main goals of the DEKRA Group’s financial management IN KEUR this risk with timely receivables management, which entails made via funds. In order to manage interest rate and price are to ensure solvency at all times and to limit financial risks. the regular monitoring of outstanding items as well as timely risks for these investment items, financial derivatives are Financial derivatives are only used for hedging purposes Trade payables 54,184 0 0 dunning and collection of receivables. Potential defaults are recognised by the fund management by way of a hedge. for existing or foreseeable hedged items. This does not give Liabilities to banks 12,604 6,906 1,052 accounted for using specific bad debt allowances and portfolio- The interest rate risk for fixed-income securities and rise to any additional risks for the Group. The transactions Other financial liabilities 66,001 1,336 0 based specific bad debt allowances. The maximum default risk funds is reflected in the price of the financial instrument. are only carried out with marketable instruments. Lease liabilities 1,114 3,067 0 is the carrying amount of the receivables as of the reporting Temporary changes in value are reflected in the revaluation date. There were no significant risk concentrations as of the reserve in other comprehensive income, permanent impair- 133,903 11,309 1,052 Liquidity risks reporting date. ments are recognised in profit or loss. For floating-rate secu- The liquidity required for operations and for implementing DEKRA is also exposed to default risk in relation to cash rities, changes in interest rates impact directly on the financial strategic measures is ensured through the cash and cash equiva- investments. In order to minimise these risks as far as possible, result. 2008 < 1 year 1 to 5 years > 5 years lents held and bank loans committed in writing (acquisition IN KEUR we restrict our cash deposits to counterparties with first-class The risk for the statement of comprehensive income is and working capital credit lines). Cash and cash equivalents are credit ratings subject to defined counterparty limits. In addi- measured in the DEKRA Group using a sensitivity analysis. invested in the form of overnight money and time deposits as Trade payables 52,766 0 0 tion, there is a limit on the proportion of the entire investment This tests for the impact on interest income or interest expense well as short-term money market papers. DEKRA AG has a Liabilities to banks 41,449 9,122 1,462 volume that may be invested with any one counterparty. of a shift in the term structure of interest rates by 100 base central cash pool which has so far focused on the German invest- Other financial liabilities 64,084 1,531 0 Securities investments are only made with investment grade points. ments. Lease liabilities 988 4,000 0 institutions. The investment strategy and the development An upward shift of 100 base points would result in The entities are largely financed centrally through of securities are discussed by the investment committee at an increase in the interest result of KEUR 484 (prior year: 159,287 14,653 1,462 DEKRA AG. regular intervals. KEUR 182). A downward shift of 100 base points would result In order to visualise liquidity risks, the DEKRA Group The maximum risk of counterparty default is calculated in an decrease in the interest result of KEUR 318 (prior year: prepares an overview of maturities for its undiscounted by using the carrying amounts of the financial assets as an KEUR 325). payment obligations arising from financial instruments. equivalent for the maximum default risk. As of December 31, As of December 31, 2009, the DEKRA Group was only 2009, therefore, the DEKRA Group was exposed to the Currency risks exposed to a very small risk of being unable to meet its theoretical maximum possible risk of counterparty default Currency risks from the operating activities are immaterial, since payment obligations arising from financial instruments in apparent from the above table for the breakdown of carrying the local entities bill the services they render locally almost the future. The DEKRA Group requires sufficient liquidity amounts of the financial instruments. exclusively in their local currency. In connection with investments for future acquisitions, which is ensured by the cash and No collateral is pledged by the counterparties for the and intragroup transactions, only liabilities arise in foreign cash equivalents available and by longer-term loan commit- financial instruments held. As of December 31, 2009, with currencies, for which hedging is decided on a case-by-case basis. ments. the exception of trade receivables and loans, no financial A change in the value of the euro against other currencies assets were overdue or affected by modifications to contracts. would not have any significant effect on profit or loss from the translation of financial assets or liabilities. Interest rate risks In the course of our investing and financing activities, we are exposed to interest rate risks. For borrowings, such risks are generally hedged using interest rate derivatives in defined interest rate hedge ratios. Due to the relatively low loan volume, the interest rate risks in relation to financing were immaterial in fiscal year 2009. 72 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 73 12.1 Other price risks As of December 31, 2009, there were liabilities to DEKRA 14 Disclosures on the Management Board and As part of the presentation of market risks, IFRS 7 also requires e. V., Stuttgart, of 19.5 million euros (prior year: 16.7 million Supervisory Board disclosures on how hypothetical changes in risk variables affect euros), primarily resulting from the profit and loss transfer prices of financial instruments. Possible risk variables include in agreement and the cash pool, as well as receivables from the The following persons are members of the Management Board: particular stock market prices or indices. As of December 31, same company of 0.1 million euros (prior year: 18.4 million 2009, the Group had available-for-sale financial assets totalling euros). • Dr. h.c. Klaus Schmidt • Assessor jur. Hermann Burr* 155.0 million euros (prior year: 170.0 million euros), which are There are lease agreements in place between DEKRA e.V., Chairman (until December 1, 2009) Legal secretary, ver.di subject to fair value fluctuations. These risks are mainly due to Stuttgart, as lessor and various companies of the DEKRA Böblingen District of Baden-Württemberg interest rate and credit risks. Group as tenants. Rent for business premises amounted to • Stefan Kölbl Uhingen 35.3 million euros in fiscal year 2009 (prior year: 35.0 million Chairman (since January 1, 2010) • Wolfgang Chur 12.2 Securities and assets of restricted availability euros). Receivables from and liabilities to DEKRA e.V., Leinfelden-Echterdingen Shareholder and Curator of the Robert Bosch Foundation As in the prior year, there were no restrictions on title or disposal Stuttgart, gave rise to interest income of 1.6 million euros • Roland Gerdon Stuttgart for legally and beneficially owned property, plant and equipment, (prior year: 3.0 million euros) and interest expenses of Stuttgart • Rolf-Peter Hoenen with the exception of the assets recognised in connection with 1.1 million euros (prior year: 1.1 million euros). There was • Clemens Klinke (since January 1, 2010) Chairman Emeritus of HUK-Coburg the finance lease. Other assets include 104.0 million euros of also a total of 12.6 million euros (prior year: 16.6 million Boffzen Versicherungsgruppe premium reserve from employer’s pension liability insurance euros) of tax allocations for income taxes and payments from • Mark Thomä (since January 1, 2010) Coburg policies pledged as collateral for pension obligations, but not to DEKRA e.V. of 9.6 million euros (prior year: 7.5 million Vaucresson • Dipl.-Wirtsch.-Ing. Arndt Günter Kirchhoff the entitled employees. euros). • Jörg Mannsperger (since January 1, 2010) Chairman of the management of No financial assets were pledged as collateral for liabili- As of the reporting date, there were receivables from Unterensingen KIRCHHOFF Automotive GmbH & Co. KG ties or contingent liabilities. subsidiaries that are not fully consolidated and companies Attendorn accounted for using the equity method, mainly comprising • Prof. Dr. Günther Langenbucher 13 Related Party Disclosures trade receivables and loans, of 19.4 million euros (prior year: The members of the Company’s Supervisory Board in the Former member of the Management Board of Pursuant to IAS 24 “Related Party Disclosures”, transactions with 26.9 million euros) and liabilities of 21.6 million euros (prior fiscal year were: Ernst & Young AG related parties must be disclosed. The management board and year: 17.3 million euros) and 0.2 million euros (prior year: Stuttgart supervisory board as well as owners qualify as related parties 0.1 million euros), respectively. Companies that are not fully • Prof. Dr.-Ing. Gerhard Zeidler • Wolfgang Loschwitz* within the meaning of IAS 24.9. consolidated and companies accounted for using the equity Chairman Chairman of the central works council of With regard to the remuneration of members of the man- method made payments to the DEKRA Group of 1.2 million President of the executive committee of DEKRA e.V. DEKRA Akademie GmbH agement and supervisory boards, please refer to the comments euros and 1.6 million euros, respectively. Equity investments Stuttgart Berlin on “Remuneration of the management board and the super- made payments of 9.7 million euros overall, for which there • Dipl.-Ing. (FH) Heinrich Breitbach* • Dipl.-Ing. (FH) Wilhelm Oberfranz* visory board”. are still liabilities of 1.2 million euros (prior year: 1.1 million Deputy Chairman Head of the Munich branch of In addition, there were further expenses (among other euros). In addition, there are receivables from loans to invest- Chairman of the group works council of DEKRA AG DEKRA Automobil GmbH things, for pensions) of KEUR 405 (prior year: KEUR 405) ees and investors of 2.0 million euros (prior year: zero). Engineer at the Frankfurt branch of Munich and obligations of KEUR 2,087 (prior year; KEUR 2,056) There is a profit and loss transfer agreement in place DEKRA Automobil GmbH • Thomas Pleines relating to people in key management positions. between DEKRA AG and DEKRA e. V. as well as a tax group Offenbach Chairman of the Management Board of for income tax and VAT purposes. • Marcus Borck* Allianz Versicherungs AG ver.di trade union secretary, Munich Bühl • Dipl.-Ing. Andreas Schwedler* Member of the central works council of DEKRA Automobil GmbH Engineer at the DEKRA Technology Center, Klettwitz Dresden *elected by the employees 74 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 75 15 Remuneration of the Management Board and the 17 Other Notes IN % Share of capital Supervisory Board Remuneration of the management board Consolidated group Affiliates in Germany: The remuneration paid to management board members comprises The Group’s shareholdings pursuant to Sec. 313 (2) HGB are DEKRA Automobil GmbH, Stuttgart 100.00 fixed annual compensation and a performance-related variable presented in full in a separate statement in accordance with DEKRA Akademie GmbH, Stuttgart 100.00 bonus. Sec. 313 (4) HGB. Below is a list of all entities included in the DEKRA Arbeit GmbH, Stuttgart 100.00 Total remuneration for the management board of consolidated financial statements in addition to DEKRA AG. DEKRA Qualification GmbH, Stuttgart 100.00 DEKRA AG including reimbursement of expenses amounted DEKRA Certification GmbH, Stuttgart 100.00 to KEUR 1,197 (prior year: KEUR 1,236). Total remuneration paid to former members of the DEKRA Industrial GmbH (formerly DEKRA Umwelt GmbH), Stuttgart 100.00 management board amounted to KEUR 219 (prior year: DEKRA personal GmbH, Stuttgart 100.00 KEUR 219). DEKRA CLAIMS Services GmbH, Stuttgart 100.00 DEKRA International GmbH, Stuttgart 100.00 Remuneration of the supervisory board DEKRA Beteiligungs- und Finanzierungs GmbH, Stuttgart 100.00 Total remuneration paid to the supervisory board for fiscal year DEKRA Consulting GmbH, Stuttgart 100.00 2009 amounted to KEUR 162 (prior year: KEUR 162). Internationales Schadenregulierungsbüro Dr. Karl Jacobs – I.S.B.-B.I.R.S. – GmbH, Aachen 100.00 16 Significant Events After the Reporting Date DEKRA Commercial Services & Engineering GmbH, Stuttgart 100.00 The abovementioned changes were made in the management DEKRA personaldienste GmbH, Eschborn 100.00 board of DEKRA AG effective as of January 1, 2010. DEKRA Event & Logistic Services GmbH, Stuttgart 100.00 Effective as of March 25, 2010, DEKRA acquired 100% DEKRA ExAM GmbH, Bochum 100.00 of the shares in the Swedish industrial testing services provider DEKRA Industrial Management GmbH (formerly DEKRA Industrial GmbH), Stuttgart 100.00 ÅF-Kontroll AB. The company is one of the leading industrial DEKRA Material Testing GmbH, Stuttgart 100.00 testing firms in Scandinavia and eastern Europe and it previ- GKK Gutachterzentrale GmbH, Dusseldorf 100.00 ously owned the listed consultancy Group ÅF AB. With the purchase, DEKRA will become number one in power Affiliates in other countries: station testing in Scandinavia. The company specialises in non-destructive materials testing, with a focus on power DEKRA Services S.A.R.L., Trappes, France 100.00 stations and large plants. It is also accredited for testing pres- DEKRA Automotive S.A., Trappes, France 100.00 sure equipment, lifts and machines. ÅF-Kontroll employs DEKRA Foncier S.N.C., Trappes, France 100.00 some 450 people and has more than 27 sites in Sweden as well Auto Contrôle Technique S.A.R.L., Allonnes, France 51.00 as branches in Norway, the Czech Republic and Lithuania. Auto Bilan France S.N.C., Trappes, France 100.00 The takeover of ÅF-Kontroll AB was financed using a C.T.A. S.A.R.L., Trappes, France 90.00 credit facility concluded in the first quarter of 2010, which is DEKRA Automotive Maroc S.A., Casablanca, Morocco 80.00 also available for future acquisitions. DEKRA Expert S.A.S.U., Trappes, France 100.00 DEKRA Test Center S.A., Narbonne, France 100.00 DEKRA Expertise S.A.S., Mondeville, France 51.00 DEKRA Service Maroc S.A., Casablanca, Morocco 80.00 DEKRA Automobil a.s., prague, Czech Republic 100.00 STK Slavkov s.r.o., Slavkov u Brna, Czech Republic 100.00 76 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES 77 IN % Share of capital IN % Share of capital Affiliates in other countries: Affiliates in other countries: STK DEKRA Rychnov s.r.o., Rychnov nad Kneznou, Czech Republic 100.00 DEKRA Diagnostic IMMOBILIER S.A.S. (formerly: NORISKO IMMOBILIER S.A.S.), Bagneux, France 100.00 DEKRA Industrial polska Sp. z o.o. (formerly: DEKRA NORISKO Industrial polska Sp. z o.o.), GAM2I S.A., Limoges, France 100.00 Warsaw, poland 100.00 MERMOZ BASTIE S.C.I., Limoges, France 100.00 DEKRA pOLSKA Sp. z o.o., Warsaw, poland 100.00 DEKRA Industrial S.A. (formerly: NORISKO S.A.), Limoges, France 95.99 DEKRA Automotive Services B.V., Uden, Netherlands 100.00 DEKRA Construction S.A.S. (formerly: NORISKO CONSTRUCTION S.A.S.), Bagneux, France 100.00 Bureau International de Règlement de Sinistres S.A., Brussels, Belgium 100.00 DEKRA Conseil HSE S.A.S. (formerly: NORISKO COORDINATION S.N.C.), Bagneux, France 100.00 DEKRA Claims Services B.V., Vught, Netherlands 100.00 DEKRA Equipements S.A.S. (formerly: NORISKO EQUIpEMENTS S.A.S.), Limoges, France 100.00 Claims Adjusters Ltd., London, UK 100.00 DEKRA Industrial South Africa Ltd. (formerly: NORISKO Industrial South Africa Ltd.), DEKRA France S.A.S., Trappes, France 100.00 Centurion, South Africa 72.40 DEKRA Claims Services International N.V., Zaventem, Belgium 100.00 DEKRA Endüstriyel Denetim (formerly: DEKRA NORISKO Endüstriyel Inceleme ve Danismanlik Sirketi), Kavacik Beykoz (Istanbul), Turkey 86.00 DEKRA Certification Sp. z o.o., Wroclaw, poland 100.00 DEKRA Holdings South Africa Ltd. (formerly: NORISKO Holdings South Africa Ltd.), Centurion, DEKRA Emission Check, Inc., Wilmington, USA 100.00 South Africa 100.00 DEKRA Nederland B.V., Uden, Netherlands 100.00 DEKRA Industrial Algérie S.A.R.L., Algier, Algeria 99.50 DEKRA America Inc., Wilmington, USA 100.00 DEKRA AMBIO S.A., Barcelona, Spain 100.00 DEKRA Keuringen B.V., Uden, Netherlands 100.00 DEKRA Systèmes S.A.S. (formerly: Thermotique S.A.S.), Versailles, France 100.00 DEKRA zaposljavanje, zaposljavanje i zastupanje d.o.o., Zagreb, Croatia 100.00 ExpERTEC S.A.R.L., Casablanca, Morocco 100.00 Bureau International de Règlement de Sinistres Suisse S.A., Geneva, Switzerland 100.00 DEKRA Experts B.V. (NL) (formerly: Toplis Hettema B.V.), Heerhugowaard, Netherlands 100.00 DEKRA Italia Holding S.r.l., Arese, (Milan), Italy 100.00 Extenso Schademanagement & Taxatie B.V., Heerhugowaard, Netherlands 100.00 DEKRA Automotive Services S.r.l., Arese, (Milan), Italy 100.00 DEKRA pre-Risk B.V. (formerly: Rispect B.V.) Heerhugowaard, Netherlands 100.00 DEKRA REVISIONI ITALIA S.R.L., Arese (Milan), Italy 60.00 Traxo B.V., Heerhugowaard, Netherlands 100.00 DEKRA za privremeno zaposljavanje d.o.o., Zagreb, Croatia 100.00 Corex B.V., Heerhugowaard, Netherlands 100.00 DEKRA Claims & Expertise B.V (formerly DEKRA Bartok B.V.), Heerhugowaard, Netherlands 100.00 KEMA Quality B.V., Arnheim, Netherlands 100.00 DEKRA Finland Oy, Vantaa, Finland 100.00 KEMA Quality Co. Ltd. (CN), Shanghai, China 100.00 polartest Oy, Vantaa, Finland 100.00 KEMA Registered Quality Inc., Lafayette, USA 100.00 DEKRA do Brasil participacoes LTDA., Atibaia, Brazil 100.00 SLOVDEKRA s.r.o., Bratislava, Slovak Republic 56.02 Associates in Germany: DEKRA Netherlands Holding B.V., Heerhugowaard, Netherlands 100.00 Euro Transport Media Verlags- und Veranstaltungsgesellschaft mbH, Stuttgart 40.00 AUTOTEST – TOUR s.r.o., Brezolupy, Czech Republic 100.00 Volchi participacoes Ltda., Atibaia, Brazil 67.77 Associates in other countries: LINCES VISTORIAS E SERVICOS LTDA., Atibaia, Brazil 67.70 JUAN A. CALZADO Comisariado de Averías S.A., Barcelona, Spain 50.00 CHECKAUTO INFORMACOES VEICULARES LTDA., Atibaia, Brazil 67.70 JUAN A. CALZADO Comisariado de Averías S.A., Lisbon, portugal 50.00 IDENTICAR CONSULATORIA TECHNICA EM VEICULOS LTDA., Atibaia, Brazil 67.70 ALESIA S.C.I., Limoges, France 100.00 78 C O n s O l I D AT E D F I n A n C I A l s TAT E M E n T s NOTES AuDIT OPInIOn 79 DEKRA AG AuDIT OPInIOn Audit of the financial statements We have issued the following opinion on the consolidated financial statements and the group management report: The shareholder meeting on May 5, 2009 appointed Ernst & “We have audited the consolidated financial statements prepared by DEKRA AG, Stuttgart, comprising the state- Young GmbH Wirtschaftsprüfungsgesellschaft as auditors ment of comprehensive income, statement of financial position, statement of changes in equity, statement of cash of the separate and consolidated financial statements for flows and the notes to the consolidated financial statements, together with the group management report for the fiscal year 2009. fiscal year from January 1 to December 31, 2009. The preparation of the consolidated financial statements and the The auditors’ fees recognised in the fiscal year are shown group management report in accordance with IFRSs as adopted by the EU, and the additional requirements of in the following table. German commercial law pursuant to Sec. 315a (1) HGB [“Handelsgesetzbuch”: German Commercial Code] is the responsibility of the Company’s management. Our responsibility is to express an opinion on the consolidated Group auditors᾽ fees financial statements and on the group management report based on our audit. We conducted our audit of the consolidated financial statements in accordance with Sec. 317 HGB IN KEUR 2009 and German generally accepted standards for the audit of financial statements promulgated by the Institut Audit services 607 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, Related services 0 financial position and results of operations in the consolidated financial statements in accordance with the Tax advisory services 427 applicable financial reporting framework and in the group management report are detected with reasonable Other services 1,398 assurance. Knowledge of the business activities and the economic and legal environment of the Group and Total 2,432 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 disclo- sures in the consolidated financial statements and the group management report are examined primarily Stuttgart, March 30, 2010 on a test basis within the framework of the audit. The audit includes assessing the annual financial state- ments of those entities included in consolidation, the determination of entities to be included in consolida- tion, the accounting and consolidation principles used and significant estimates made by management, as DEKRA AG well as evaluating the overall presentation of the consolidated financial statements and the group manage- The Management Board ment 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 IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB and give a true and fair view of the financial position and performance of the Group in accordance with these requirements. The group management report is consistent with the consolidated Kölbl, Chairman Gerdon 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.” Stuttgart, March 31, 2010 Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft Klinke Thomä Hochrein Blesch Wirtschaftsprüferin Wirtschaftsprüfer Mannsperger [German Public Auditor] [German Public Auditor] 80 REPORT OF ThE ChAIRMAn OF ThE suPERVIsORY BOARD REPORT OF ThE ChAIRMAn IMPRInT OF ThE suPERVIsORY BOARD The supervisory board regularly examined all material DEKRA e.V. business events conducted by the DEKRA AG Group in Communication and Marketing the reporting period. They were discussed at length in Handwerkstr. 15 three joint sessions with the management board of D-70565 Stuttgart DEKRA AG. In addition, the supervisory board con- stantly monitored the management board, which re- Phone + 49.7 11.78 61 28 76 Photography ported to it in writing and orally on important events. Fax + 49.7 11.78 61 29 12 Gaukler Studios GmbH, Filderstadt Issues included the economic situation of the Company, planned acquisitions and the assessment of business Concept and Design Lithography risks. The supervisory board also passed a resolution on HGB Hamburger Geschäftsberichte Hirte GmbH & Co. KG, the change in the composition of the management board GmbH & Co. KG, Hamburg Hamburg with effect as of January 1, 2010. DEKRA will continue to support its successful course for growth with far- Printed by reaching personnel decisions. Bechtle Druck&Service GmbH & Co. KG, In the estimation of the supervisory board, Esslingen a.N. DEKRA AG was successful in the reporting period despite worldwide economic turbulence. Total revenue and pre-tax profits both rose on the prior year. Around 1,200 new employees resulting from acquisitions were successfully integrated into the Company. The annual financial statements and manage- ment report of DEKRA AG and the consolidated financial statements and group management report P r o f. D r .- I n g . g e r h a r D z e I D l e r p R E S I D E N T O F T H E p R E S I D E N T I A L B OA R D O F D E K R A E .V. of DEKRA AG for fiscal 2009 with reference to the A N D C H A I R M A N O F T H E S U p E R V I S O RY B OA R D O F bookkeeping were audited by Ernst & Young GmbH, D EKR A AG Wirtschaftsprüfungsgesellschaft, Steuerberatungs- gesellschaft, Stuttgart, who issued an unqualified audit opinion. The supervisory board has acknowledged the Stuttgart, May 2010 result of the audit conducted by Ernst & Young The Supervisory Board GmbH, Wirtschaftsprüfungsgesellschaft, Steuerbe- ratungsgesellschaft, Stuttgart, and has no objections following its own review of DEKRA AG’s financial statements, management report, consolidated finan- cial statements and group management report. Prof. Dr.-Ing. Gerhard Zeidler The supervisory board approves the annual Chairman financial statements prepared by the management board which are herewith ratified. The supervisory board also approves the consolidated financial state- ments prepared by the management board. The supervisory board would like to thank the management board and employees for their hard work in 2009.
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