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OUR PERFORMANCE

VIEWS: 17 PAGES: 42

  • pg 1
									                                                   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




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DEKRA EKRA AG
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                                                                                                                                                                            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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