13 - maxingvest · 13 13 Annual Report ... sophisticated multichannel distribution system with its own ... above all NIVEA – increasing its innovative power,

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Annual Report

Ann

ual R

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Überseering 18 · 22297 Hamburg · www.maxingvest.com

1

maxingvest ag

is the holding company for the Tchibo and Beiersdorf operating companies.

maxingvest ag holds a 100 % stake in Tchibo GmbH and controls more than 50 % of the voting rights of Beiersdorf AG. As a management holding company, maxingvest ag monitors and supports its subsidiaries, which operate independently.

maxingvest ag is committed to

PRESERVING AND ENHANCING ADDED VALUE

and increasing it in the long term. As a management holding company, we maintain strategic oversight of our equity investments, monitor their financial indicators and provide an economic foundation, allowing our operating companies to concentrate on their operating business.

002

TCHIbo

Revenues: € 3,461 million

Employees: 12,458 *

Tchibo GmbHHamburg, Germany

Tchibo Coffee Service GmbHHamburg, Germany

Tchibo Manufacturing

GmbH & Co. KGHamburg, Germany

Tchibo Produktions GmbHHamburg, Germany

Eduscho (Austria) GmbHVienna, Austria

* annual average

bEIERSDoRf

Revenues: € 6,141 million

Employees: 16,573 *

Beiersdorf AGHamburg, Germany

tesa SEHamburg, Germany

Beiersdorf Ges mbHVienna, Austria

Beiersdorf s.a.s.Paris, France

Beiersdorf SpAMilan, Italy

KEy ComPANIES

MAxInGVEST GrouP

003

CoNTENTS

DATA AND fACTS 4

mANAGEmENT AND SUPERVISoRy boARD 5

Letter from the Management Board 5

Boards of maxingvest ag 6

report of the Supervisory Board 7

PRESERVING ADDED VALUE 8

GRoUP mANAGEmENT REPoRT 10

CoNSoLIDATED fINANCIAL STATEmENTS 45

AUDIToRS’ REPoRT AND RESPoNSIbILITy STATEmENT 125

fURTHER INfoRmATIoN 127

Corporate Governance at maxingvest ag 127

004

DATA AND fACTS

in € million 2013 2012

Revenues 9,603 9,608

thereof domestic revenue 1) 3,887 3,937

thereof foreign revenue 1) 5,716 5,671

EbIT 1,080 919

Net profit 2) 749 616

Total assets 2) 13,668 13,489

Shareholders’ equity 2) 8,233 7,756

thereof minority interests 2) 3,117 2,980

Equity ratio in % 2) 60 57

Investments 3) 311 270

EbIT margin in % 11.3 9.6

Number of employees (annual average) 29,078 29,280

1) By domicile of company.2) The prior-year figures have been adjusted due to the retrospective application of IAS 19 (2011). Please refer to the disclosures in the section entitled “Changes in

accounting policies”.3) Excluding financial assets.

005mANAGEmENT AND SUPERVISoRy boARD

LETTER fRom THE mANAGEmENT boARD

LADIES AnD GEnTLEMEn

The maxingvest Group’s operating companies recorded a mixed performance in financial year 2013. Tchibo’s

revenues were down year-on-year and its earnings were flat. Beiersdorf improved its revenues and earnings com-

pared with the previous year.

In 2013, Tchibo continued to focus on its “Zukunft braucht Herkunft” strategy (Building our Future on Tradition)

and the growth areas defined in this – the online and Eastern Europe business, the espresso/caffè crema segments

and single-serving coffee systems. Business developments in 2013 fell short of expectations; however, progress

continued in the espresso/caffè crema segments and the area of single-serving coffee systems. Challenges on the

russian instant coffee market and the fact that lower raw coffee prices were passed on to customers meant the

company failed to achieve its forecast revenue. EBIT was maintained at the prior-year level by cutting costs and

making structural changes.

Business developments at Beiersdorf show that the company is on the right track. Both the Consumer business

segment and the tesa business segment recorded encouraging growth rates. The Consumer business segment

made successful progress thanks to the systematic implementation of Beiersdorf’s corporate strategy, which is

based on its Blue Agenda. The aim is to make Beiersdorf more competitive and enhance its economic success. Its

success can be seen particularly in the performance recorded by the emerging markets and the launch of new,

high-selling products. The tesa business segment once again lifted sales both in the industrial markets and in the

consumer business.

The equity ratio was around 60 % in the reporting period, and net financial assets also remained at a high level.

This means that maxingvest ag has a solid basis for reacting to potential uncertainties and further increasing the

market presence of its two brand groups. The maxingvest Group is well positioned thanks to its strong brands, its

clear strategy programmes and, in particular, its committed employees. our special thanks go to our staff for their

hard work. our Group’s success is rooted in our customers’ trust and our employees’ dedication.

Michael Herz Thomas Holzgreve

006

boARDS of mAXINGVEST AG

SuPErVISorY BoArD

Prof. Dr. Reinhard Pöllath, Munich

Chairman

Lawyer

P+P Pöllath + Partners

friedrich-Karl Wrede*, Hamburg

Deputy Chairman

Chairman of the Company Works Council

Tchibo GmbH

Sebastian fischer-Zernin, Hamburg

Lawyer

Weiss Walter Fischer-Zernin rechtsanwälte

(from 13 June 2013)

Peter franielczyk*, ockholm

Trade union Secretary, ver.di

Wolfgang Herz, Hamburg

Member of the Management Board

Participia Holding GmbH

Dr. Arno mahlert, Hamburg

Chairman of the Supervisory Board GfK SE,

non Executive Director

Helmut müller*, Hütschenhausen

regional Manager, Shop Technician

Tchibo GmbH

Ralf Neumann*, Hamburg

Coordinator of Technical Administration

Tchibo Manufacturing GmbH & Co. KG

Tomas Nieber*, Stade

Chairman of the Board, Economic

and Industrial Policy Department of IG BCE

Dr. Jens odewald, Bergisch Gladbach

Chairman and Lawyer

odewald & Compagnie Gesellschaft für

Beteiligungen mbH

(until 13 June 2013)

* Employee representative

Dr. Wolfgang Peiner, Hamburg

Independent German Public Auditor

Stefan Pfander, Berg

Management Consultant

Invent Group GmbH

Prof. manuela Rousseau*, rellingen

Head of Corporate Social responsibility

Beiersdorf AG

Regina Schillings*, Hamburg

Inventory Accounting Clerk

Beiersdorf Shared Services GmbH

Prof. Dr. Wulf von Schimmelmann, Berg-Leoni

Chairman of the Supervisory Board

of Deutsche Post AG

Volker Schopnie*, Halstenbek

Technician, Deputy Chairman of the Company

Works Council Beiersdorf AG

Ann-Christin Wagenmann, Hamburg

Former General Manager

Beiersdorf Consumer Products (PTY) LTD.

currently retired

MAnAGEMEnT BoArD

michael Herz, Hamburg

(Member of the Management Board)

Thomas Holzgreve, Bad oldesloe

(Member of the Management Board)

mANAGEmENT AND SUPERVISoRy boARD

007

REPoRT of THE SUPERVISoRy boARD

The Supervisory Board duly advised and supervised the Management Board. At least 15 members attended each of its three meetings, held on 27 March, 13 June and 12 December 2013. Tchibo and Beiersdorf presented reports focusing in particular on the course of business, their long-term development, including the market envi-ronment, regions and divisions, and on business planning, logistics projects and changes in legal form. In addition, the Management Board communicated closely with the Chairman of the Supervisory Board and the Chairman of the Finance and Audit Committee. The Supervisory Board adopted one resolution by way of the circulation of written documents. The finance and Audit Committee met five times and adopted one resolution by way of the circulation of written documents. The main topics discussed were the annual and consolidated financial state-ments, Group internal audit and risk management. In addition, the committee talked about the changes to be made to Tchibo’s logistics in connection with the online business, the customer loyalty programme and changes in raw coffee procurement. The management board Committee discussed the reappointment of a member of the Management Board and Management Board remuneration. The two meetings of the Executive Committee primarily focused on preparing meetings of the full Supervisory Board. Comprehensive reports on all committee meetings were given to the full Supervisory Board. The mediation Committee did not meet. Ernst & young Wirtschaftsprüfungsgesellschaft, Hamburg, audited the annual financial statements, the consolidated finan-cial statements and the combined management report and issued an unqualified opinion. The areas of emphasis of the audit were the measurement of significant equity investments and of the reported financial instruments, the risk management and internal control system and changes in pension provisions. The dependent company report, which was prepared by the Management Board in accordance with section 312 of the Aktiengesetz (AktG – German Stock Corporation Act), also received the following unqualified audit opinion: “Based on our audit and assessment, which were carried out in accordance with professional standards, we confirm that (1) the factual statements made in the report are correct, (2) the consideration paid by the Company in the legal transactions mentioned in the report was not excessive and (3) there are no circumstances that would indicate a materially dif-ferent assessment of the measures listed in the report to that given by the Management Board.” The Supervisory board examined the annual financial statements, the consolidated financial statements, the combined manage-ment report, the proposal by the Management Board on the appropriation of net profit, the dependent company report, and the audit reports by the auditors. The Finance and Audit Committee discussed the documents at its meeting on 21 March 2014 and presented the results of its examination at the following Supervisory Board meet-ing. Both meetings were attended by the auditors, who gave an extensive report on their audit findings. The Supervisory Board examined the proposal by the Management Board on the appropriation of net retained profit, taking into account the Group’s financial situation and outlook as well as the interests of the shareholders, and concurred with it. The examination of the annual financial statements, the consolidated financial statements, the combined management report, the proposal on the appropriation of net profit, the dependent company report (including the concluding declaration by the Management Board) and the audit reports by the auditors did not lead to any reservations. The Supervisory Board concurs with the findings of the audit and approves the annual financial statements and the 2013 consolidated financial statements. The annual financial statements are therefore adopted. Dr. Jens odewald retired from the Supervisory Board at the end of the Annual General Meeting on 13 June 2013. In his capacity as a long-time member and Chairman, he provided the highest service to the Company and its subsidiaries. The Supervisory Board would like to thank him for his achievements and wishes him all the best. mr. Sebastian fischer-Zernin was elected as a substitute for the remaining term of office. The Supervisory Board would like to thank all employees and especially its customers and consumers for their trust in the companies’ products and services. This trust, reaffirmed and cemented each day, secures the future of the companies in the Group and of everyone who depends on them.

27 March 2014

The Chairman of the Supervisory BoardProf. Dr. reinhard Pöllath

008 mAXINGVEST AG

For Tchibo,

PRESERVING ADDED VALUE

means building on its experiences for the future and taking environmental and social responsibility. Tchibo is taking the best of its successful, long-standing business model into the future. Tchibo stands in particular for enjoyment and quality – and aims to meet its high standards with sustainable products and processes.

TCHIbo is the market leader for roasted coffee in Germany,

Austria, Poland and the Czech Republic. It combines this expertise

in coffee with an innovative, weekly changing range of consumer

merchandise and services such as travel, mobile communications

services and green energy. Tchibo sells its products using a

sophisticated multichannel distribution system with its own

branches, an extensive retail presence and a strong online and

mail order business.

009

For Beiersdorf,

PRESERVING ADDED VALUE

means concentrating on its core competency, skin care. In line with its “Focus on Skin Care. Closer to Markets.” strategy and its strategic compass, the Blue Agenda programme, the company maintains a clear focus on its core categories and markets. In particular, it con-centrates on strengthening its brands – above all NIVEA – increasing its innovative power, systematically expanding its presence in the emerging markets and reinforcing its position in Europe.

bEIERSDoRf is a global company with two separate business

segments. The Consumer business segment, with its strong skin and

body care brands, is its main business. The tesa business segment is

one of the world’s leading manufacturers of self-adhesive products

and solutions for industry, craft businesses and consumers.

fUNDAmENTAL INfoRmATIoN AboUT THE GRoUP

GrouP STruCTurE AnD BuSInESS MoDEL

The maxingvest Group consists of the holding company maxingvest ag and the operating companies, Tchibo and

Beiersdorf. In addition, the holding company is the parent of certain subsidiaries that are primarily engaged in asset

management. The holding is family-owned and concentrates on strategic business management.

Tchibo combines the ultimate in coffee expertise, coffee enjoyment in its own coffee bars and innovative, weekly

changing consumer merchandise with services such as travel, mobile communications offerings and green energy.

Its products are marketed via an integrated, centrally managed distribution system. Customers purchase products

on the Internet and in branch, as well as at specialist retailers and supermarket outlets. The various channels are

increasingly integrated. In addition, Tchibo Coffee Service provides a specialist delivery service for commercial cus-

tomers such as offices and catering establishments.

Beiersdorf is a global leader in the consumer goods industry and has over 16,500 employees in more than 150

affiliates worldwide. There are two key business segments. The Consumer business segment, whose strong brands

focus on the international skin and body care markets, is the main business. The tesa business segment is a pioneer-

ing manufacturer of self-adhesive products focused on solutions for industry, craft businesses and consumers.

maxingvest ag holds 100 % of Tchibo GmbH. BBG Beteiligungsgesellschaft mbH, Gallin, a subsidiary of maxingvest

ag, holds 50.46 % of Beiersdorf AG. Moreover, maxingvest ag held additional shares amounting to less than 0.1 %

of Beiersdorf AG’s share capital as at the reporting date. maxingvest ag thus controls more than 50 % of the voting

rights of Beiersdorf AG. Beiersdorf AG is the parent company of Beiersdorf. tesa is managed as an independent

subgroup within Beiersdorf. Including Beiersdorf AG’s treasury shares, 60.46 % of Beiersdorf’s voting rights are

attributable to maxingvest ag in accordance with section 22 (1) sentence 1 no. 1 in conjunction with sentence 3 of

the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act).

100 % 82.5 %

bbG

50.46 %

010 GROUP MANAGEMENT REPORT

In the reporting period, maxingvest ag retired the 300,000 own shares it had acquired in the previous year on the

basis of an authorisation by the Annual General Meeting on 13 December 2012, with effect from 15 november

2013. The retirement has no effect on the share capital; rather, it increases the proportionate interest of the remain-

ing shares in the share capital in accordance with section 8 (3) of the Aktiengesetz (AktG – German Stock Corpora-

tion Act).

CorPorATE STrATEGIES

Strong brands are the foundations of the maxingvest Group. The Tchibo brand enjoys a high degree of popularity

and extensive brand awareness in German-speaking countries and in many parts of Eastern Europe. The Tchibo,

Eduscho and Davidoff Café brands, as well as local brands such as Jihlavanka in the Czech republic, also compete

successfully at an international level. on the roasted coffee market, Tchibo is the market leader in Austria, Poland

and the Czech republic in addition to Germany, and is extremely strong in the Hungarian and Slovakian markets.

Every day, millions of consumers trust Beiersdorf’s innovative, high-quality skin and body care products. Beiersdorf’s

successful international brand portfolio is tailored to meet the individual needs and wishes of consumers, as well

as regional requirements. The ongoing development of the subgroup’s strong brands is the basis for this closeness

to consumers and markets, and hence for Beiersdorf´s success. Its three core brands are nIVEA, Eucerin and

La Prairie. The brand portfolio also includes other brands such as Labello, Florena, atrix, 8x4, Hansaplast/Elasto-

plast, Aquaphor, SLEK and Maestro. Beiersdorf’s tesa subsidiary provides innovative self-adhesive products and

system solutions. The manufacturer is a global market leader in a large number of application areas thanks to its

many years of experience in coating technology and developing adhesive masses.

In the reporting period, Tchibo continued to follow its “Zukunft braucht Herkunft” (Building our Future on Tradi-

tion) strategy. The aim is to consciously invest in the brand core and to ensure sustainable growth. The success

factors that create the unique Tchibo brand have been documented in Tchibo’s DnA and can be summarised as

covering the following overarching areas:

Coffee expertise

non-food concept

Distribution system

Marketing

Corporate culture

Tchibo’s DnA provides binding documentation of the success factors that make the company so strong and reliable

and that should be preserved for the future. The growth areas for the next few years were also derived from this –

the online and Eastern Europe business, the espresso/caffè crema segments and the single-serving coffee systems

segment.

011

The espresso/caffè crema growth area and the single-serving coffee systems turned in another particularly strong

performance. Tchibo launched its new capsule machine, Cafissimo PICCo, in September. not only does the PICCo

create the best caffè crema and espresso using 100 % sustainable coffee, but its small format also fits in every

home. Capsule systems are currently the fastest growing segment of the European coffee market. Tchibo’s unit

sales for machines and capsules recorded a further increase in the reporting period. The espresso/caffè crema seg-

ment saw growth on par with recent years. Tchibo remains the strongest branded provider in this category.

Developments in Eastern Europe fell short of expectations. Significant growth in the online business in Eastern

Europe was unable to offset the renewed devaluation of Eastern European currencies and challenges in the russian

instant coffee business. Tchibo reacted to these developments by cutting costs, making structural changes and

adjusting pricing.

Tchibo increased its revenues in the online business, but failed to meet its own expectations. The Tchibo app was

launched in the reporting period. This enables smartphone users to browse the weekly changing range of con-

sumer merchandise while they are out and about. The app also serves as a digital wallet and manages Tchibo

vouchers and customer cards. Customers can also access product information with the integrated Qr scanner.

used as a navigation system, the Tchibo app also directs customers straight to the nearest store.

As cross-channel marketing is becoming more and more important, Tchibo has significantly expanded its

services in this area. Since summer, Tchibo has combined the advantages of online shopping with visiting a branch.

Customers can view the entire online product range in all branches using iPads and can then order immediately.

The order is delivered either directly to their home or to the Tchibo branch for collection.

Customers making purchases in Tchibo’s online shop can have their order sent to their branch of choice and pick

it up there, with no shipping costs charged. In addition, items ordered online can be exchanged or returned at any

Tchibo branch for up to 14 days after purchase.

Beiersdorf aims to be the number 1 company in the product categories and markets that are relevant to it. Its Blue

Agenda, which clearly defines the company’s objectives and how to implement them, was developed in 2012 to

achieve this goal. The Blue Agenda focuses on five main areas:

strengthening Beiersdorf’s brands – first and foremost nIVEA,

increasing Beiersdorf’s innovative power,

systematically expanding Beiersdorf’s impact and presence in the emerging markets as well as strengthening

its home markets in Europe,

increasing efficiency and speed,

dedicated employees.


Completing the Blue Agenda is expected to take three to five years. Beiersdorf made substantial progress towards

this objective in 2013. The results for the reporting period reflect this success, with revenues and earnings both

rising significantly. Beiersdorf‘s market share has increased and its brand presence has been strengthened in many

countries – both in the emerging markets and in Europe. The positive performance in the German home market is

particularly noteworthy.

Work on the gradual roll-out of the new nIVEA logo, including the redesign of the nIVEA Men product category,

continued successfully at Beiersdorf in the reporting period. The plan is to complete the process by the end of

2014. The brand’s core was revitalised and brand recognition fundamentally improved. It is clearly differentiated

from the competition and the nIVEA umbrella brand now has a uniform image. once the nIVEA brand logo had

been changed, the corporate logo was also revised so as to create a uniform, eye-catching corporate image.

At Beiersdorf, the reorganisation of the research and development unit, a key focus of its strategic activities in the

reporting period, has been successfully completed. The new r&D model is aligned with the six core categories –

Body, Face, Sun, Men, Deo and Shower. This ensures that innovations are focused even more strongly on con-

sumer expectations, increasing Beiersdorf‘s innovative power and allowing it to exploit its competitive advantages.

Beiersdorf continued to push forward with the expansion of its global development and production capacities in

Silao, Mexico, and in China in 2013. The regional development activities aim to get closer to consumers in the

emerging markets by making local adaptations. In India, Beiersdorf will invest more than € 30 million in construct-

ing a production facility that is scheduled to start operations in 2015 with around 300 employees. Beiersdorf

intends to use local products to consolidate its position on the rapidly growing Indian market and to gain market

share.

Improving efficiency and speed leads to a sustainable increase in growth and earnings power. For example,

concentrating the marketing budget on initiatives with a broad reach significantly improves the efficiency of

Beiersdorf’s marketing spend without increasing costs. Beiersdorf works continually to make processes more

efficient, speed up decisions and optimise cost structures.

Dedicated employees are a critical success factor when it comes to preserving long-term competitiveness and

innovation in a globalised world. In line with the Blue Agenda, Beiersdorf’s corporate culture now concentrates

more strongly on a clear focus, entrepreneurship and a performance-driven approach. Attractive career develop-

ment programmes and locations, flexible working models and a customer-driven corporate culture are increas-

ingly important means of attracting talent and reinforcing long-term ties. Since Beiersdorf is a global company,

diversity is a crucial competitive factor. Among other things, it is working hard to provide support for women in

the form of mentoring and networking programmes and to offer flexible working conditions for mothers and

fathers. In addition, Beiersdorf is focusing on ensuring a more internationalised workforce.

tesa is an independent part of the Beiersdorf group, and develops, produces and markets self-adhesive products

and system solutions for industry, craft businesses and consumers. Consistently high quality, extremely inno vative

thinking and the use of state-of-the-art technology are core elements of its brand philosophy and strategy.

013

Highly qualified employees and ongoing business process optimisation enable tesa to respond quickly and flexibly

to market changes, to design new solutions to problems and develop needs-based products. Knowledge of pro-

duction processes, the analysis of current industry trends and the subgroup’s wide range of high-quality, market-

driven products offer tesa competitive advantages, ensuring its success.

InTErnAL ConTroL SYSTEM

The objective of the maxingvest Group’s strategic corporate management is to achieve a sustained increase in

enterprise value. maxingvest ag is committed to pursuing a long-term growth strategy.

Tchibo and Beiersdorf use the EBIT margin and changes in market share as the performance indicators for their

internal management. The overall Group is managed on the basis of earnings before interest and taxes (EBIT) and

the EBIT margin. Active cost management and efficient business activities help ensure that the subgroups generate

profits and competitive returns.

rESEArCH AnD DEVELoPMEnT AT BEIErSDorF

Beiersdorf’s expertise in the area of research and development has been driving the company’s success for more

than 130 years. The Consumer business segment develops innovative products that are tailored to meet the indi-

vidual wishes and needs of consumers worldwide. Beiersdorf products offer compelling quality, effectiveness and

excellent tolerability. The tesa business segment develops and markets innovative, high-quality self-adhesive system

and product solutions, making it a world leader in its field.

Beiersdorf is known throughout the world for its leading-edge skin care expertise. Beiersdorf’s scientists work

continually to enhance their knowledge of the complex processes taking place in the skin. They also make use of

the latest scientific discoveries and take advantage of collaboration with external partners in their research work.

In the reporting period, the research and development area focused on the complex processes involved in skin

ageing and on finding better approaches to this issue.

Beiersdorf’s research and development function has also integrated third-party knowledge for many years now.

open Innovation – systematically enhancing collaboration through the timely integration of leading research insti-

tutions, universities and suppliers in Beiersdorf’s international innovation network and its “Pearlfinder” initiative – is

a central component of Beiersdorf’s activities. The aim is to further enhance Beiersdorf’s innovative potential by

integrating external ideas and solutions. Scouting for new ideas and solutions was expanded in 2013 and is now

firmly anchored within the research and development organisation.

The Consumer business segment applied for patents for 65 innovations in financial year 2013. Key launches

included nIVEA Cellular Anti-Age, for example. This combines the advantages of effective anti-ageing ingredients

with very special sensory properties. nIVEA Body In-Shower was also launched in 2013. In-Shower is a completely

new application system for Beiersdorf body care products.


mACRoECoNomIC PARAmETERS

MACroEConoMIC EnVIronMEnT

The global economy stabilised increasingly over the course of 2013, even though global growth was lower than in

the previous year. The industrialised nations were the main source of momentum. Both the expansionary monetary

policy and the decline in uncertainty regarding the future course of the eurozone crisis boosted the economy. As

in the previous year, growth declined in the emerging markets. nevertheless, global output increased by 2.9 %.

GDP in the eurozone declined slightly in the reporting period. Although the banking crisis in Cyprus caused uncer-

tainty at the beginning of the year, the eurozone economy stabilised in the course of the year. output increased

from the second quarter onwards, but structural adjustments in a number of countries are still serving as a brake

on the economy.

GDP in Germany saw weak growth of only 0.4 % in 2013. The main driver for the economy was consumer spend-

ing. Both private and public spending rose. The ongoing challenges in the export environment impacted German

foreign trade, leading to relatively muted growth. While Germany exported 0.6 % more goods and services overall

in real terms than one year earlier, imports rose by 1.3 %.

THE GErMAn rETAIL TrADE

German retail sales rose by 0.1 % in 2013 in real terms according to the Statistisches Bundesamt (Federal Statistical

office). nominal retail growth increased by 1.4 % year-on-year. The environment – in particular jobs density, but

also the low level of inflation and low interest rates – was especially favourable for consumer spending. Despite

this, consumer spending decreased appreciably. This effect is attributable to the increase in energy prices, which

had a strong impact on consumers’ purchasing power.

According to the Gesellschaft für Konsumforschung (GfK), 2013 was a successful year for food retailers. Healthy

growth was the result of price increases on the one hand, and continued consumer demand in 2013 for high

quality on the market for food on the other. This explains the willingness to pay more for organic and fresh

products. Measured in terms of volume, demand increased in isolated cases only.

The structural shift in the retail sector continued in 2013. While conventional retailers saw weaker growth, online

retailers steadily gained market share. For example, online businesses generated revenues of € 33.1 billion in 2013,

growing by 12 % year-on-year.

GErMAn CoFFEE MArKET

Sales of roasted coffee to German households in the reporting period amounted to 660 million pounds in weight,

on a level with the previous year. once again, the espresso/caffè crema and single-serving market saw significant

growth year-on-year. The share of the roasted coffee market attributable to filter coffee continued to decline.

015

The year 2013 saw a continuation of the prior-year trend towards declining raw coffee prices – both for Arabica on

the new York exchange and for robusta on the London exchange. The drop in prices was due to the more than

adequate supply in the reporting period, which was caused by a repeat of the high production levels in the three

largest producing countries, Brazil, Vietnam and Colombia in the reporting period. Vietnam in particular produced

a record harvest of robusta, contrary to predictions. In Colombia, the largest producer of fine-washed Arabica

coffees, efforts to promote more efficient cultivation policies by renewing trees and higher-yield plantations were

successful. In 2013, Brazil also recorded another high level of shipments of unwashed Arabica grades.

InTErnATIonAL BoDY CArE MArKET

The growth rate in the cosmetics market relevant for Beiersdorf was up slightly on the prior year in 2013 at a

global level. The Asia, Middle East and Latin America regions were the main growth drivers. However, growth in

the Latin American markets was down significantly on the prior-year figure. The saturated markets in Western

Europe and north America saw only slight growth year-on-year. The effects of the weak economy and the

associated poor consumer sentiment were felt in the Southern European markets in particular.

In 2013, global procurement markets were impacted by the euro and sovereign debt crisis as well as by the

weakened global economy, which affected the united States and China in particular. The price of oil was relatively

stable in 2013, but remained at the high level of uSD 105 per barrel. This was due in part to the continued

unstable political situation in the near and Middle East. Increases in raw materials prices were more moderate than

expected in 2013 despite highly volatile availability and price trends on the markets for specific raw materials that

are used in a large number of Beiersdorf’s products. The subgroup continued to ensure raw materials security at

its production facilities in 2013 by engaging in forward-looking primary materials management and by establishing

additional alternative sources of supply.

oVErALL ASSESSMEnT oF THE EConoMIC SITuATIon

Consumers benefited from the lower price levels on the raw coffee markets in particular. After a price increase,

Tchibo promised its customers in 2011 that it would lower coffee prices as soon as the price for Arabica grades

would allow this. Tchibo made good on this promise in a first step in 2012, before lowering its prices again in

october of the reporting period.

In Beiersdorf’s Consumer business segment, the strong growth rates recorded by the cosmetics markets in Asia and

Latin America in particular contributed to the healthy overall performance. Sales in the saturated cosmetics markets

of Germany and parts of Western Europe also recorded encouraging growth. The tesa business segment once

again lifted sales both in the industrial markets and in the consumer business.


RESULTS of oPERATIoNS

ConSoLIDATED rEVEnuES DoWn SLIGHTLY YEAr-on-YEAr

In financial year 2013, consolidated revenues amounted to € 9,603 million (previous year: € 9,608 million). The

decline in revenues is attributable to Tchibo.

A total of 59 % of revenues were generated abroad. As in previous years, the bulk of foreign revenues was gener-

ated by Beiersdorf.

rEVEnuES MAxInGVEST GrouP in € million

2013 2012

Tchibo 3,461 3,568

Beiersdorf 6,141 6,040

Holding 1 –

13 12 Total 9,603 9,608

Tchibo’s revenues declined by 3 %, falling from € 3,568 million to € 3,461 million. revenues declined in all regions,

although the fall was more pronounced abroad. This was due to negative effects from exchange rate changes,

developments in russia and, in particular, the reduction in coffee prices.

The price for high-grade Arabica raw coffee had risen sharply in 2010 and 2011. In the first quarter of 2012, the

raw coffee price fell back to the level set at the end of 2010. In April 2012, Tchibo lowered the prices for all of its

roasted coffees. As a result of the further decrease in raw coffee prices, Tchibo again passed the price advantage

on to its customers. In october 2013, it lowered prices again by up to € 0.50 for its roasted coffees, including Privat

Kaffee, Feine Milde, Sana, Beste Bohne, Herzhaft Mild, espresso and caffè crema, making good on its promise to

lower its coffee prices when the raw coffee market allowed.

In financial year 2013, additional steps were taken to further optimise the distribution area and locations were

reviewed on an ongoing basis. In Germany, the number of branches declined year-on-year. The distribution area in

the Eastern European business was expanded to include additional branches.

017

once again, online sales increased in importance. The www.tchibo.de website is one of the five most frequently

visited online shops in Germany. More visitors and a larger number of completed orders lifted revenues, although

these remained below expectations.

SHArE oF rEVEnuES BY rEGIon For TCHIBo 2013

in per cent

Germany 75

Abroad 25

Beiersdorf improved its revenues from € 6,040 million to € 6,141 million. organic revenue growth amounted to 7 %.

Consolidated revenues saw a nominal increase of nearly 2 % year-on-year. The increase came from both business

segments. The Consumer business segment achieved nominal revenues of € 5,103 million (previous year: € 5,048 mil-

lion), exceeding the previous year by 1 % in nominal terms and 7 % organically. The tesa business segment improved

its nominal revenues by nearly 5 % from € 992 million to € 1,038 million. tesa’s organic growth was 9 %.

The healthy revenue trend in the Consumer business segment is proof of the systematic implementation of the

corporate strategy as manifested in the internal Blue Agenda programme. Beiersdorf increased its market share in

both the saturated markets of Europe and the emerging markets, and achieved double-digit growth rates in some

cases thanks to strong innovations and outstanding marketing concepts. Beiersdorf’s three core brands – nIVEA,

Eucerin and La Prairie – achieved very encouraging growth rates.

SHArE oF rEVEnuES BY rEGIon For BEIErSDorF 2013

in per cent

Europe 55

Africa/Asia/Australia 27

America 18


The key growth drivers for nIVEA were nIVEA Deo, nIVEA Body and nIVEA Sun. Eucerin generated strong growth,

thanks in particular to the launch of Eucerin VoLuME-FILLEr and the development of Eucerin Even Skin. In the

exclusive cosmetics segment, the La Prairie brand recorded a positive growth rate, driven in particular by the

Caviar Collection with its strong core portfolio and new product launches.

The tesa business segment within Beiersdorf also performed positively, with revenue growth up 5 % in nominal

terms. Structural changes resulting from the sale of tesa Bandfix AG in the previous year reduced growth by

1.5 percentage points.

tesa generates almost three-quarters of its revenues in the industrial segment and one-quarter through its con-

sumer products and craft businesses. In the industrial segment, both the direct customer business and the distribu-

tion business in all regions contributed to growth. Business growth was particularly brisk in Asia and the uSA, again

driven by the electronics and automotive industries. The consumer products business was focused on Europe and

Latin America and improved its revenues slightly year-on-year.

EBIT MArGIn uP on PrEVIouS YEAr

The maxingvest Group’s operating profit (EBIT) was € 1,080 million in the reporting period (previous year:

€ 919 million). The increase is largely attributable to Beiersdorf. The Group achieved an EBIT margin of 11.3 % (pre-

vious year: 9.6 %).

The cost of goods sold decreased by 3 %. This was attributable to Tchibo, which saw a decline in excess of the

decline in revenues. At Beiersdorf, the costs of goods sold rose in proportion to revenues.

Gross profit increased by 2 %. Marketing and selling expenses were € 3,983 million in the reporting period, up 2 %

on the prior-year figure of € 3,889 million. Marketing and sales expenses rose by € 66 million year-on-year at

Beiersdorf and by € 28 million at Tchibo.

other operating expenses decreased by € 115 million to € 275 million (previous year: € 390 million). This was primar-

ily the result of a decline at Beiersdorf – where most other operating expenses are incurred. This item at Beiersdorf

primarily comprises additions to provisions for litigation and other risks, as well as miscellaneous other operating

expenses.

At € 221 million, Tchibo’s earnings before interest and tax remained on a par with the previous year during the

reporting period. The EBIT margin was 6.4 % (previous year: 6.2 %).

019

Beiersdorf’s EBIT was € 820 million (previous year: € 698 million). Beiersdorf’s results of operations are evaluated on

the basis of the operating result (EBIT) excluding special factors. This figure is not part of IFrSs and should be

treated merely as voluntary additional information. The special factors listed are one-time, non-operating trans-

actions. EBIT excluding special factors rose to € 814 million (previous year: € 735 million), while the EBIT margin was

13.2 % (previous year: 12.2 %). In the Consumer business segment, EBIT excluding special factors was € 638 million

(previous year: € 606 million) and the EBIT margin reached 12.5 % (previous year: 12.0 %). EBIT in the tesa business

segment rose from € 129 million in 2012 to € 176 million in the past financial year; the EBIT margin was 16.9 %

(previous year: 13.0 %). Positive special factors in the net amount of € 6 million (previous year: € – 37 million)

related to both business segments in 2013.

In the Consumer business segment, expenses of € 12 million were incurred as part of the realignment of corporate

structures and processes, mainly resulting from the reorganisation of the business in China. In the tesa business

segment, income of € 18 million was generated in 2013 in connection with the closure of a production facility in

Singapore.

Special factors in the previous year related exclusively to the Consumer business segment and consisted mainly of

expenses incurred in the course of the realignment of corporate structures and processes (€ 24 million) and an

expense resulting from the acquisition in full of its Turkish subsidiary (€ 6 million).

The Holding division’s EBIT for the reporting period was € 39 million (previous year: € 0 million). This was due

primarily to the effects of the reversal of provisions in connection with previous equity investments.

TAxES

Tax expense at the maxingvest Group amounted to € 327 million in 2013 (previous year: € 298 million*). Deferred

tax income was € 19 million in the reporting period (previous year: € 21 million*). Current income taxes amounted

to € 346 million (previous year: € 319 million).

* The prior-year figures have been adjusted due to the retrospective application of IAS 19 (2011). Please refer to the disclosures in the section of the notes to the

consolidated financial statements entitled “Changes in accounting policies”.


ConSoLIDATED nET ProFIT uP YEAr-on-YEAr

Consolidated net profit amounted to € 749 million (previous year: € 616 million*), up 22 % on the prior-year period.

The increase is due above all to the € 161 million rise in EBIT.

Tchibo‘s net profit amounted to € 165 million, down on the prior-year figure of € 182 million. Beiersdorf’s net

profit reached € 543 million, exceeding the prior-year figure of € 454 million*.

EArnInGS PEr SHArE

Earnings per share in accordance with IFrSs after non-controlling interests amounted to € 123.95 (previous year:

€ 96.32*). Earnings per share were calculated on the basis of the average number of 3,660,001 no-par value shares

in the reporting period (previous year: an average of 3,885,001 shares).

nET ProFIT MAxInGVEST GrouP in € million

2013 2012*

Tchibo 165 182

Beiersdorf 543 454

Holding 41 – 20

13 12 Total 749 616



021

NET ASSETS AND fINANCIAL PoSITIoN of THE GRoUP

BALAnCE SHEET STruCTurE AnD EQuITY rATIo

The maxingvest Group’s total assets amounted to € 13,668 million at the balance sheet date (previous year:

€ 13,489 million). The prior-year figure was adjusted due to the retrospective application of IAS 19 (2011) – “Employ-

ee Benefits”. Further details can be found in the section of the notes to the consolidated financial statements

entitled “Changes in Accounting Policies”.

At € 7,533 million, non-current assets were up on the previous year (€ 7,483 million*). 71 % of non-current assets

are intangible assets and consist mainly of goodwill as well as the adjusted carrying amounts of the trademarks

that were identified during the initial consolidation of Beiersdorf AG and the Chinese hair care brands that were

acquired when the shares of Beiersdorf Hair Care China were purchased.

Current assets rose by 2 % from € 6,006 million* to € 6,135 million. The increase in current assets is primarily due

to an increase in the “other current financial assets” item. The increase in the “cash and cash equivalents” item is

mainly attributable to the Beiersdorf segment.

Equity rose by 6 % in the reporting period, from € 7,756 million* to € 8,233 million. The equity ratio was 60 % at

the reporting date (previous year: 57 %*).

non-current liabilities in the amount of € 2,488 million were down € 659 million on the prior-year figure (previous

year: € 3,147 million*). Current liabilities amounted to € 2,947 million, up 14 % on the prior-year figure (€ 2,586 mil-

lion). These changes are primarily attributable to the change in non-current and current financial liabilities. As a

result of the upcoming repayment in october 2014 of the bond issued by maxingvest ag, the bond was reclassified

to current financial liabilities. Current provisions also decreased by € 153 million to € 653 million. This was due

among other things to the reversal of provisions recognised in connection with previous equity investments that

are no longer needed.

ASSETS AnD CAPITAL STruCTurE MAxInGVEST GrouP as per cent of total assets

2012 2013 AssetsEquity and liabilities 2013 2012

non-current assets 55 55 Equity 60 57*

Current assets 22* 23 non-current liabilities 18 24*

Securities, cash and cash equivalents 23 22 Current liabilities 22 19

12 13 13 12




FInAnCIAL PoSITIon – GrouP

Cash flow from operating activities amounted to € 655 million, down € 181 million on the previous year.

The net cash outflow from investing activities in the reporting period was € 256 million (previous year: € 766 mil-

lion). Investments in non-current assets (€ 317 million) as well as net investments in securities (€ 38 million) were

partially offset by income from the sale of assets (€ 21 million) and interest and proceeds from other financing

activities (€ 78 million).

At € 399 million, free cash flow was above the level of the previous year (€ 70 million).

net cash used in financing activities amounted to € 231 million (previous year: € 187 million). As in the previous

year, distributions totalling € 142 million were made to shareholders.

Cash and cash equivalents rose by € 121 million to € 1,229 million (previous year: € 1,108 million).

The maxingvest Group’s net financial assets increased in the reporting period to € 2,574 million (previous year:

€ 2,461 million). The increase is mainly attributable to the larger holdings of cash and cash equivalents.

CAPITAL ExPEnDITurE BY THE MAxInGVEST GrouP

The maxingvest Group invested a total of € 311 million in intangible assets and property, plant and equipment in

2013 (previous year: € 270 million).

of this capital expenditure, € 84 million (previous year: € 118 million) was invested by Tchibo, mainly in property,

plant and equipment. The bulk of this investment was in connection with the improvements made to IT, the out-

of-home markets coffee business and coffee production. As before, investments were also made in optimising

distribution operations. € 227 million was attributable to Beiersdorf (previous year: € 151 million), € 217 million of

which was invested in property, plant and equipment.

023

mAXINGVEST AG (HGb SINGLE-ENTITy fINANCIAL STATEmENTS)

PrInCIPLES oF ACCounTInG

The consolidated financial statements of the maxingvest Group include the financial statements of maxingvest ag

prepared in accordance with the International Financial reporting Standards (IFrSs). The following explanations

relate to the annual financial statements of maxingvest ag prepared in accordance with the Handelsgesetzbuch

(HGB – German Commercial Code) and the Aktiengesetz (AktG – German Stock Corporation Act). In accordance

with section 315 (3) of the HGB, the management report of maxingvest ag has been combined with the manage-

ment report of the maxingvest Group, as the risks and opportunities of the parent company and its expected

development cannot be separated from those of the Group.

nET InCoME ABoVE THE PrIor-YEAr LEVEL

maxingvest ag’s sales from sales of consumer merchandise amounted to € 0.2 million (previous year: € 0.6 million).

The improvement in other operating income, which rose by € 37 million to € 85 million, was mainly due to non-

recurring positive effects from the sale of interest rate swaps and options as well as from the reversal of provisions

in connection with previous equity investments.

other operating expenses fell by € 3 million to € 10 million. The improvement in the reporting period is largely

attributable to lower additions to provisions.

Income from investments amounted to € 302 million, roughly on a level with the previous year. Income from invest-

ments mainly consisted of a distribution of € 85 million (previous year: € 74 million) by BBG Beteiligungsgesellschaft

mbH and the earnings contribution from Tchibo GmbH of € 207 million (previous year: € 212 million).

Beiersdorf AG dividends received by the subsidiary, BBG Beteiligungsgesellschaft mbH, totalling € 89 million (pre-

vious year: € 89 million) are included in the latter’s result.

net interest income decreased by € 5 million to € – 36 million in the reporting period. Interest income remained

constant at € 18 million, while interest expenses totalled € 55 million, up € 5 million.

maxingvest ag’s net income for the period amounted to € 271 million (previous year: € 259 million). The increase

was primarily attributable to positive effects from interest rate derivatives transactions and increased operating

income from the reversal of provisions.

The bulk of the cash funds generated in the reporting period was used to strengthen cash and cash equivalents.

The cash held (securities and cash at banks) decreased by € 65 million to € 676 million as at the balance sheet date

(previous year: € 741 million).


In the reporting period, the Company retired the 300,000 own shares it had acquired in the previous year on the

basis of an authorisation by the Annual General Meeting on 13 December 2012, with effect from 15 november

2013. The retirement has no effect on the share capital; rather, it increases the proportionate interest of the remain-

ing shares in the share capital in accordance with section 8 (3) of the Aktiengesetz (AktG – German Stock Corpora-

tion Act). The subscribed capital remains unchanged at € 125 million. It is composed of 3,660,001 (previous year:

3,960,001) no-par value shares.

A total of € 81 million was transferred to the revenue reserves from net retained profits for the previous year, while

€ 135 million was transferred from net income for the reporting period. maxingvest ag’s equity amounted to

€ 2,244 million (previous year: € 2,020 million). The equity ratio as at the reporting date improved to 51 % (previous

year: 47 %).

Provisions decreased by € 82 million to € 78 million. This was mainly the result of risks that no longer apply in

connection with previous equity investments and of the utilisation of provisions in relation to the tax audit of

maxingvest ag for financial years 2003 to 2006.

maxingvest ag’s liabilities decreased during the year under review from € 2,125 million to € 2,097 million. Long-term

liabilities declined to € 824 million (previous year: € 1,508 million) as maxingvest ag’s € 700 million bond must be

repaid in october 2014. As in the previous year, maxingvest ag’s liabilities to banks amounted to € 560 million.

DEPENDENT ComPANy REPoRT

In compliance with section 312 of the Aktiengesetz (AktG – German Stock Corporation Act), the Management

Board has issued a dependent company report, which concludes as follows:

“our Company received appropriate consideration for each transaction listed in the ‘dependent company report’

and suffered no disadvantage from the measures undertaken or omitted listed therein. This assessment is based on

all the relevant circumstances that were known to us at the time the transactions were performed or the measures

were taken or not taken.”

025

EmPLoyEES

TCHIBo

The number of employees (quarterly average) rose from 12,274 in the previous year to 12,458.

The training and continuous professional development opportunities for managers and employees offered by

“Tchibo Campus”, which were revised in 2012, were taken up extensively in 2013. In addition to participating in

various types of specialist training and courses on personal development and methodological skills, employees can

also gain practical experience by working in a branch.

In 2013, succession planning for key positions was continued and put on a systematic footing as part of the

employee assessment process. Measures to position Tchibo as an employer brand also continued, and included

intensive contact with universities, representation at trade fairs, greater use of social media for recruitment, the

popular trainee programmes and fast-tracking of high-potential candidates.

Tchibo works continuously to improve its employees’ work-life balance. In August 2010, it became the first German

retail company to be certified as a family-conscious employer by berufundfamilie gGmbH, an initiative set up by

the Hertie charitable foundation. This recognised seal of quality for family-friendly human resources policies is

awarded for three years at a time. The audit carried out by berufundfamilie gGmbH’s audit arm in spring 2013

confirmed that the company’s action plan had been implemented in an exceptionally successful manner. In order

to achieve even greater improvements, a recertification audit was performed and a comprehensive action plan for

the next three years was drawn up, focusing on management and leadership as a key topic.

Tchibo‘s occupational health management programme was extended further in 2013. The Management Board

tasked an interdisciplinary management team, consisting of members from Human resources and Corporate

responsibility, with recording, analysing and prioritising health measures at individual sites and functions. The

agreed health promotion measures, focusing on exercise, workplace ergonomics, preventative measures and

monitoring of psychological stress, will be implemented and rolled out across Germany in 2014.

nuMBEr oF TCHIBo EMPLoYEES 2013 (annual average)

Germany 8,570 69 %

Abroad 3,888 31 %

Total 12,458 100 %


BEIErSDorF

Beiersdorf employed a quarterly average of 16,573 people worldwide (previous year: 16,963).

Consumer

Beiersdorf employees are vital to the company’s success. They manage strong brands, develop innovations, and

enthuse consumers around the world with high-quality products. The Human resources department’s forward-

looking activities aim to support the strategic goals from Beiersdorf’s Blue Agenda.

In the year under review, the following topics addressed by Beiersdorf’s Human resources department are particu-

larly worth mentioning:

encouraging a culture of candid feedback,

fostering creativity through diversity,

enhancing cross-border collaboration,

Integrated Talent Management.

In addition, Beiersdorf’s Human resources department is specifically focused on fostering motivation and a

performance-driven culture. Dedication and enthusiasm at work are crucial for long-term corporate success.

A key means of enhancing Beiersdorf’s corporate culture lies in fostering a culture of candid and honest feedback.

out of the many initiatives in fiscal year 2013, the introduction of a global feedback process is particularly worth

mentioning: TEAMVoICE 2013 was the first global employee survey of all Beiersdorf companies, and was con-

ducted in collaboration with an international market and opinion research company. A total of 89 % of the employ-

ees surveyed provided feedback on the main factors constituting a good working environment. The survey results

are made available in anonymised form within the individual teams, who discuss them together and use them to

derive relevant measures for the employees concerned. The aim of this dialogue is to foster openness and trust at

team level, strengthening long-term employee loyalty.

Beiersdorf is a global company, which means that diversity is not an end in itself, but a crucial competitive

advantage. Diversity fosters creativity: Beiersdorf systematically promotes diversity in its workforces. In the year

under review, the Human resources department compiled a global diversity action programme with a key focus

on gender and internationalisation that contains clear objectives with regard to employee development and

recruitment.

027

For women, mentoring and networking programmes were initiated. Creating more flexible working conditions for

both men and women improves the work-life balance. These measures are already delivering initial results: the

percentage of women in management positions in Germany rose from 22.5 % at the end of 2012 to 25.5 % at the

end of 2013. Beiersdorf intends to systematically pursue this path over the coming years and to increase this figure

to 30 % by 2020.

As part of the continued internationalisation of its workforce, Beiersdorf is focusing on increasing the number of

international employees at its Hamburg location. The number of senior managers with international experience is

to be increased throughout the Group.

Equally typical of the company’s Human resources work are its wide variety of international initiatives: for example,

Beiersdorf cooperates with local universities in Southern Europe, where the economic situation is currently extreme-

ly strained, to give talented young recruits an opportunity to make a global contribution to the Group. In Mexico,

Beiersdorf’s research & Development area is collaborating with local universities to recruit qualified new staff for

the new Beiersdorf development laboratory in Silao. Around 550 positions shall be created in the laboratory and

the production facility in the period up to the end of 2015.

tesa

Planning activities associated with the construction of the new corporate headquarters in norderstedt near

Hamburg Airport were one focus of Human resources work in 2013. relocation is scheduled for 2015 and affects

around 800 employees. The plans focused on how the new space is to be used as well as on optimising commu-

nication and social facilities. Preparations were made in close cooperation with the codetermination bodies and

with employees.

under the motto “tesa wants to know!” all employees at tesa SE were asked to provide feedback in a survey that

was conducted in cooperation with a market-leading research and consulting institute. The results offer important

information on how employee motivation can be further improved and their ties with the company strengthened.

The tesa factory in offenburg already conducted the survey back in 2012 and received an award for its working

environment in the year under review.

As a rule, tesa fills important management positions from within its own ranks. This preserves the company’s

expertise in relation to its customers, markets, and product applications. The succession planning and talent

management process has now been revamped with the goal of identifying and developing the right talents in good

time before positions become vacant. Succession planning scenarios for the most important positions in the tesa

business segment are being developed at all organisational units based on a global process.

nuMBEr oF BEIErSDorF EMPLoYEES 2013 (annual average)

Europe 9,765 59 %

Africa, Asia, Australia 4,641 28 %

America 2,167 13 %

Total 16,573 100 %


SUSTAINAbILITy

Corporate social responsibility is a well-established part of the maxingvest Group’s policy. Tchibo and Beiersdorf

have integrated corporate responsibility into their management systems, with the aim of improving their perfor-

mance in this area from year to year.

TCHIBo

A focus on long-term success and the example provided by the German concept of the “ehrbarer Kaufmann”

(“honourable merchant”) have been the guiding principles of this Hamburg-based family business for over 60 years.

The Tchibo brand deservedly enjoys a very high level of trust amongst consumers, standing as it does for quality

and fair prices.

Sustainability has been an integral part of Tchibo’s corporate strategy since 2006. The company formulates its own

standards and corporate responsibility obligations. Firstly because Tchibo’s business model, its expertise and also

its size enable it to make a difference, for example in the cultivation and processing of coffee, cotton and wood.

And secondly, because Tchibo is convinced that sustainable business policies will have a substantial impact on its

future economic success. To succeed in the future, the company needs not only high-quality products and business

partners who focus on the long term, but also enthusiastic employees who can identify with the company’s

business policies and – above all – the confidence of its customers.

In 2013, Tchibo continued to make progress towards its goal of making its business activities fully sustainable. The

Deutsches netzwerk Wirtschaftsethik (DnWE – German Business Ethics network) awarded Tchibo its Prize for

Corporate Ethics back in 2012 in recognition of its commitment. In 2013, the company received the German

government’s CSr prize, the European CSr Award and the Supply Chain Sustainability Award, awarded jointly by

the Bundesvereinigung Logistik (the national logistics association) in Germany and Austria. The Verbraucher

Initiative e.V. (German Consumer Initiative) awarded Tchibo a gold medal for the company’s credible and compre-

hensive, easy-to-understand consumer communications about sustainability.

Coffee

Tchibo is committed to protecting the environment and improving the living conditions of coffee farmers and their

families in the “Bean Belt” around the equator. As part of its commitment towards becoming a fully sustainable

business, Tchibo aims in the medium term to sell only coffee varieties cultivated in line with its ecological, social

and economic standards that offer coffee farmers a long-term livelihood. In order to achieve this goal, the com-

pany is pursuing a comprehensive approach to enhancing both coffee supply chains and the coffee sector as a

whole. As a result, the share of the total raw coffee for Tchibo’s domestic and foreign business accounted for by

raw coffee included in Tchibo’s sustainability concept was increased from around 25 % in 2012 to more than 30 %

in 2013. As in previous years, Tchibo works together with all internationally recognised standards organisations.

These are the rainforest Alliance, Fairtrade, uTZ Certified and the organisations behind the Eu’s organic farming

logo. The baseline standard of the 4C Association (Common Code for the Coffee Community) is used to organise

the coffee farmers and to sensitise them to the need for sustainable coffee cultivation. All the original Privat Kaffee

varieties and the coffee for the Tchibo Cafissimo capsules were switched to 100 % certified coffee grades in 2012.

Ever since 2009, Tchibo’s coffee bars have only offered coffee from certified sources. Tchibo launched a new range

of premium products in the reporting period – Barista Espresso and Barista Caffè Crema – both of which carry the

Fairtrade seal.

029

Consumer merchandise

Tchibo’s range of consumer merchandise is known for its quality and variety. Its management of the supply chain

in this area systematically follows the goals of fair, environmentally friendly production conditions and resource-

friendly product design.

Since 2007, Tchibo has used the WE (Worldwide Enhancement of Social Quality) qualification programme to

improve long-term working conditions at production facilities, particularly in Asia. The programme, which was

developed in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ – the German

Society for International Cooperation) and the BMZ – German Federal Ministry for Economic Cooperation and

Development, addresses one of the most important factors influencing working conditions: the social relationships

between workforce and management. Most violations of working standards have their roots in this network of

relationships. Local trainers facilitate meetings at the production facilities where managers, workers and workers’

representatives, together with Tchibo buyers, draw up concrete action plans aimed at improving working condi-

tions. As in the past, the supplier qualification programme was extended in 2013. To date, 284 producers have

taken part in qualification initiatives or completed the WE programme.

Back in 2012, Tchibo became the second company to sign the Fire and Building Safety Agreement drawn up by

leading trade unions and nGos to meet the challenge posed by poor fire safety standards in Bangladesh. other

large international clothing companies signed the agreement in 2013.

Tchibo places great emphasis on the environmentally and socially sustainable sourcing of the raw materials – cot-

ton, wood and cellulose – used in its consumer merchandise. This is why the company is committed to supporting

environmentally and socially compatible cotton-growing. The range of articles carrying the “Cotton made in Africa”

logo and products made from certified organic cotton in compliance with the oE 100/oE Blended Standard (from

Textile Exchange) was again continued in 2013. In order to ensure that the organic cotton in Tchibo products was

reliably produced using organic farming methods, the products are certified by independent institutes in accor-

dance with the oE 100 und oE Blended standards. These standards were developed by Textile Exchange, a global

non-profit organisation. As a member of Textile Exchange, Tchibo supports the production of organically grown

cotton worldwide. In addition, Tchibo has been a member of the Better Cotton Initiative (BCI) since 2012. BCI is a

multi-stakeholder organisation, in which textile companies and cotton producers work with nGos such as the

WWF to promote sustainable cotton production.

Many Tchibo products are made of wood. In order to ensure that forests are preserved for future generations,

Tchibo makes sure that this valuable raw material comes from responsible sources. The same also applies to the

paper used. The Forest Stewardship Council (FSC®), a non-profit organisation, issues a recognised label certifying

wood and paper products sourced from responsible forestry. For example, garden furniture made from boreal or

tropical hardwoods meets the FSC’s criteria. Tchibo started printing its magazines, catalogues and advertising

materials in Germany, Austria and Switzerland on FSC-certified paper in 2012. These have also been printed on

FSC-certified paper at Tchibo’s subsidiaries in the Czech republic and Slovakia since 2013, and Turkey will make the

switch in 2014.


Environment

Protecting the environment is a central pillar of Tchibo’s corporate strategy, because an unspoilt environment is an

important precondition for the future viability of the company and of the economy as a whole. Beginning with the

supply chain and continuing all the way through the company’s sites to product transportation and dispatch,

Tchibo’s goal is clear – to minimise its impact on the climate and resources. To achieve this, all business processes

are examined and managed using a customised environmental management system.

The programme to convert the Tchibo GmbH fleet to lower-consumption vehicles made further progress in 2013.

Co₂ emissions average 121 g per kilometre for the entire fleet of cars driven by the management, senior managers

and the sales team. This means that Tchibo fleet emissions are lower than the Eu climate protection target of

130 g/km in 2013. Deutsche umwelthilfe e.V. awarded the “Grüne Karte” (“Green Card”) to Tchibo in 2012, and

again in 2013, for its systematic vehicle fleet policy which aimed at lowering Co₂ emissions.

More detailed information can be found in Tchibo’s Sustainability report at www.tchibo-nachhaltigkeit.de.

BEIErSDorF

For Beiersdorf, “care” is a core value and part of its core business. This encompasses not only skin care and protec-

tion, but also responsibility towards fellow human beings and the environment. Sustainability is a living component

of Beiersdorf’s corporate culture and is strategically anchored in all business processes. Beiersdorf’s goal is to

continue to combine success and responsibility.

Consumer

The “We care.” sustainability strategy that Beiersdorf developed in 2011 focuses on three fields of activity:

“Products”, “Planet”, and “People”. The company has defined clear, long-term objectives for each field of activity.

By 2020, Beiersdorf aims to:

generate 50 % of its sales from products with a significantly reduced environmental impact (base year 2011),

have reduced its Co₂ emissions by 30 % per product sold (base year 2005),

reach and improve the lives of one million families (base year 2013).

The focus in 2013 was on continuing to roll out this strategy throughout the company and on implementing

projects in all three areas.

Products

Beiersdorf has expanded its systematic product lifecycle assessments to additional product categories so as to

improve the integration of sustainability aspects in the innovation process. In addition, FSC-certified papers are

being successively rolled out for all nIVEA folding boxes.

031

Beiersdorf has made considerable progress towards using sustainable palm kernel oil. In addition to participating

in the roundtable on Sustainable Palm oil (rSPo), the company is also active in the newly formed “Forum für nach-

haltiges Palmöl” (the German Forum for Sustainable Palm oil). By 2020, Beiersdorf intends to switch the raw

materials concerned to segregated or at least mass-balanced palm (kernel) oil and corresponding derivatives. until

the changeover is complete, Beiersdorf will purchase certificates on the Green Palm trading platform. In 2013,

100 %* of the palm oil and palm kernel oil equivalents contained in its feedstocks were covered by certificates. In

2014, the first raw materials will be physically switched to mass-balance-certified palm kernel oil.

Planet

To reach its goal of reducing Co₂ emissions by 30 %, Beiersdorf is systematically working to significantly increase

energy efficiency at all its locations and to drive forward the use of renewable energies.

Beiersdorf’s factory in Argentona (Spain) installed a photovoltaic facility at the beginning of 2013. The facility has

480 solar modules with a capacity of up to 170,000 kilowatt-hours; this corresponds to about 10 % of the produc-

tion facility’s total annual requirements. In addition, Beiersdorf Consumer plans to meet all its electricity needs in

Germany with renewable energy starting in 2016.

Beiersdorf’s “Blue Building” programme for constructing and using buildings aims at sustainably managing the

entire lifecycle of its owner-occupied properties throughout the world. “Blue Building” helps to save energy,

conserve resources, and at the same time to promote a healthy working environment for all employees.

Beiersdorf’s new production center in Mexico is one of only a few facilities of its kind in the world to be planned

in accordance with the LEED Platinum environmental standard. Compared with other production facilities, the new

facility emits significantly less Co₂, consumes less water, and uses resources more efficiently – despite its signifi-

cantly higher production capacity.

Beiersdorf is also underscoring its social and ecological commitment by building the new “Troplo-Kids” day-care

centre in Hamburg, the location of the company’s headquarters. The new day-care facility, which offers 100

places, will help improve the work-life balance and is fully compliant with the criteria of the German Sustainable

Building Council (DGnB).

People

Beiersdorf aims to reduce the number of work-related accidents and to continue to improve workplace safety with

its company-wide “zero accidents” policy. For example, Behavioral Based Safety (BBS) principles have been estab-

lished to make employees aware of possible sources of danger and hence develop safe working practices and

optimise workplace safety. These define clear behavior patterns for avoiding accidents that are expressed in terms

of “I will” and “I will not” rules. The concept will be extended to include additional countries in 2014.

* Excluding Beiersdorf Hair Care China.


In the year under review, Beiersdorf launched the “nIVEA cares for family” initiative. The latter’s focus on support-

ing and assisting families is in keeping with the company’s social traditions and corresponds to the core values of

the brands – first and foremost nIVEA. The objective of this initiative is to strengthen families in three areas. under

long-term local projects, children will be given access to social and academic education, among other things, and

mothers will receive individual support. In addition, nIVEA wants to give families the opportunity to spend more

time with each other. Employees play a leading role in successfully implementing social responsibility at Beiersdorf.

During the “nIVEA Family Days” held worldwide in December, employees were able to support local families. The

voluntary employee component of the CSr strategy will be strengthened in the future and expanded to include

additional initiatives.

CSr at Hansaplast/Elastoplast focuses on strengthening first aid in everyday situations. It aims to offer first aid

training events in the units’ local regions, increasing the ability to provide first aid if needed. Hansaplast/Elastoplast

units in France, Canada, and the netherlands have already been successfully working with their local red Cross

organisations for a long time. This initiative will now be extended to other countries.

Additional information can be found at www.beiersdorf.com/sustainability.

tesa

Since 2001, tesa has been systematically establishing a proprietary environmental management system. It success-

fully completed the second phase of its environmental programme in 2013 and in fact exceeded its ambitious

goals, especially due to the contributions made by its production locations worldwide. Co₂ emissions have been

reduced considerably since the programme began. In addition, solvent usage, waste, and emissions of volatile

organic compounds (VoCs) were cut significantly. Almost all facilities are certified in accordance with ISo 14001,

the international environmental standard.

Currently, tesa is working to determine various ecological footprints in the production process in order to further

enhance its environmental compatibility. using the eco-balance method, entire product lifecycles are being

analysed for their environmental effects – from raw materials extraction through the materials used, the manufac-

turing and transportation of the products, down to disposal after use. This work can be used, for example, to check

whether more environmentally friendly alternatives for individual product components or packaging are available.

Among other things, the goal is to consistently increase the proportion of recyclable materials used.

All tesa’s activities are documented in an annual report that is available at www.tesa.com/responsibility.

033

oVERALL ASSESSmENT of THE GRoUP’S ECoNomIC PoSITIoN

The maxingvest Group’s operating companies recorded a mixed business performance in 2013. Tchibo’s revenues

amounted to € 3,461 million (previous year: € 3,568 million), 3 % below the prior-year figure. EBIT amounted to

€ 221 million, on a level with the previous year. The EBIT margin was 6.4 % (previous year: 6.2 %).

Tchibo’s growth areas for the next few years are defined in its “Zukunft braucht Herkunft” strategy (Building our

Future on Tradition): the online and Eastern Europe business, the espresso/caffè crema segments and the single-

serving coffee systems segment. Challenges on the russian instant coffee market and the fact that lower raw

coffee prices were passed on to customers meant that the forecast revenue growth was not reached. EBIT was

maintained at the prior-year level, as forecast, by cutting costs and making structural changes.

Comparison of actual and forecast business developments at Tchibo

Forecast for 2013 in 2012 Annual report Result in 2013

revenue growth Slight improvement – 3 %

EBIT on a level with the previous year € 221 million

Beiersdorf’s business performance in 2013 shows that it is on the right track. Both the Consumer business segment

and the tesa business segment recorded encouraging growth rates. Beiersdorf’s revenues reached € 6,141 million

(previous year: € 6,040 million). Its organic revenues were up 7 % on 2012. EBIT rose to € 820 million (previous year:

€ 698 million). After adjustment for special factors, EBIT was € 814 million (previous year: € 735 million). Excluding

special factors, the EBIT margin was 13.2 % (previous year: 12.2 %).

The Consumer business segment made successful progress thanks to the systematic implementation of Beiersdorf’s

corporate strategy, which is based on its Blue Agenda. This strategic compass aims to make Beiersdorf more com-

petitive and enhance its economic success. Its success can be seen particularly in the performance recorded by the

emerging markets and the launch of new, high-selling products. The tesa business segment once again lifted sales

both in the industrial markets and in the consumer business.


Beiersdorf exceeded its original forecast for financial year 2013, as already announced in ad hoc disclosures in

november and December. In the Consumer business segment, the expansion of its impact and presence on the

emerging markets, where progress was faster than expected, was a particular contributing factor. In addition,

expectations regarding the market success of Beiersdorf’s innovations in 2013 were exceeded. At tesa, the healthy

trend in the automotive and electronics growth markets were the main drivers. The operating result (EBIT, exclud-

ing special factors) and the EBIT margin both increased in financial year 2013, as forecast.

Comparison of actual and forecast business developments at beiersdorf

Forecast for 2013 in 2012 Annual report Result in 2013

revenue growth (organic) Above market 7 %

EBIT margin (excluding special factors) up year-on-year (12.2 %) 13.2 %

These developments resulted in revenues of € 9,603 million (previous year: € 9,608 million) for the maxingvest

Group, which represents a slight decline. revenues and earnings before interest and taxes (EBIT) had been forecast

to improve. As the maxingvest Group’s performance is significantly influenced by that of its operating subsidiaries,

Tchibo’s decline in revenues had a direct effect. At € 1,080 million, EBIT was up € 161 million on the prior-year

figure of € 919 million, in line with the forecast.

035

REPoRT oN oPPoRTUNITIES AND RISKS

InTEGrATED rISK AnD oPPorTunITY MAnAGEMEnT SYSTEM

The maxingvest Group operates in various business fields, both nationally and internationally, in which new oppor-

tunities are continuously arising. In addition, it is exposed to a variety of business risks, which are monitored and

managed using corresponding systems and processes. The maxingvest Group’s risk and opportunity policy aims to

leverage opportunities, but to accept the related risks only if the expected increase in value clearly more than

compensates for the risks.

The maxingvest Group fundamentally enhanced its risk management system in the previous year. A key part of this

upgrade is analysing risks by distinct clusters – short-term operational risks, non-recurring risks and strategic risks.

Different, appropriate forecast periods have been determined for each of these risk clusters. The forecast period

for short-term operational risks and non-recurring risks is one year, while that for strategic risks is up to five years.

TCHIBo oPErATES A CoMPrEHEnSIVE oPPorTunITY AnD rISK MAnAGEMEnT SYSTEM

Tchibo’s opportunity management system is closely aligned with its corporate strategy, which is focused on ensur-

ing long-term customer loyalty by differentiating itself from national and international competitors. regular analyses

of customers and the competition enable it to react in a timely manner to the dynamic marketplace. Concrete

market opportunities are derived from the knowledge gained and are used in the continuous planning processes

together with the defined success factors.

To monitor the risk situation, Tchibo uses a risk management system that identifies the key business risks and limits

them by taking countermeasures. uniform standards and central mechanisms for coordination ensure that risk

management functions effectively. All key risks are periodically recorded as part of extensive risk inventories. risks

were broken down into the above-mentioned risk clusters to ensure their systematic capture. Within these

clusters, a further distinction was made into logical categories. In addition, acute risks are immediately reported

to corporate management when they arise. This enables potentially threatening risks to be closely tracked and

brought under control.

up-to-date information on changes in the risk situation is incorporated in Tchibo’s management and planning

systems in the course of the year, and is a component of decision-making and control processes. The integration

of the risk inventory and planning processes enables the risk management system to be continuously enhanced and

anchors risk awareness across the Group. In terms of communication, regular risk reports are used to inform both

Tchibo GmbH’s Management Board and its Supervisory Board of the risk situation. The effectiveness of the risk

management system is audited by the Internal Audit unit.


As a retailer, Tchibo is basically subject to the risk of saturation in individual markets, which could lead to flat or

declining sales. This risk is monitored and is counteracted by an innovative product policy, which closely monitors

trends and sentiment in the relevant sales markets and reacts accordingly. This ensures that growth potential in any

new, specific national and international markets is fully exploited.

The constantly changing retail landscape – currently dominated by growing retail concentration, increased compe-

tition among physical retailers and the ongoing trend towards e-commerce – represents challenges for Tchibo.

Tchibo counters these risks by modernising and enhancing its physical retail presence, building up its e-commerce

business and focussing even more strongly on cross-channel activities.

Since the foundation of the company, the Tchibo name has become a brand that customers associate with a

pleasurable experience, expertise, quality and trust. This image allows Tchibo to build long-term customer relation-

ships. However, all factors that could damage the brand name represent a risk for Tchibo. This risk is effectively

mitigated by a judicious communication policy, careful quality controls and compliance with social and environ-

mental standards. Tchibo’s long-term brand image is dependent on its spirit of continuous innovation, together

with its ability to identify market trends and analyse the risks and opportunities associated with launching new

products, taking into account its target groups. There is a risk that Tchibo will lose its relevance as a brand if it fails

to maintain this creative competitive edge. To prevent this, Tchibo is expanding its portfolio of first-class suppliers.

This ensures quality, innovation and compliance with its corporate social responsibility standards. Tchibo also

fosters ongoing employee development and is establishing responsive and dynamic product development

processes.

Specific production and warehousing locations, including their IT infrastructure, form an integral part of Tchibo’s

retail system business. operational stoppages can have a significant effect on supply chains, for which time is of

the essence. Emergency plans, adaptive measures and specific insurance solutions are used to limit this business-

related risk.

oPPorTunITY AnD rISK MAnAGEMEnT ForMS An InTEGrAL PArT oF CorPorATE MAnAGEMEnT AT BEIErSDorF

risk management is also an integral part of central and local planning, management and control processes within

Beiersdorf and conforms to consistent standards across the Group. open communications, the risk inventory

carried out at regular intervals and the planning and management system ensure that the risk situation is

presented transparently. risk management is coordinated at Group headquarters.

The Internal Audit unit monitors risk management and compliance with the internal control system by means of

systematic audits. The department is independent of the Group’s operating activities, and regularly reviews its busi-

ness processes, the systems installed and the effectiveness of the controls put in place. In addition, the external

auditors audit the risk early warning and monitoring system. They report their audit findings to the Management

Board, the Supervisory Board and in particular the Audit Committee of the Supervisory Board, which regularly

focuses on these topics.

037

risk management is also designed to protect brand assets and leverage the associated opportunities. Beiersdorf’s

compliance with high standards of product quality and safety is the basis for consumers’ continued trust in its

brands. Innovations and prudent brand management ensure consumer acceptance of products, and their appeal.

Beiersdorf performs in-depth safety assessments, which take into account consumer feedback on earlier products,

when developing new products. All products are subject to the strict criteria laid down in the quality management

system. The potential created for the various brands is safeguarded and expanded by registering and managing

intellectual property rights. Strong brands that balance innovation and continuity are the response to fierce global

competition on price, quality and innovation. By developing and implementing the “Consumer Insights” process,

Beiersdorf has laid the groundwork for identifying consumer wishes even faster and reflecting them in the products

it develops. This also counteracts the growing retail concentration and the regional emergence of private label

products.

Beiersdorf is subject to procurement risk with regard to delivery reliability, the cost of raw materials and upfront

expenditures on purchased goods and services. It counteracts these risks by continuously monitoring its markets

and suppliers and ensuring active management of its supplier portfolio, as well as by appropriate contract manage-

ment. Production and logistics activities may be exposed to risks relating to occupational health and safety, the

environment and business interruption. Beiersdorf limits these risks through process control checks and location-

specific audits. Moreover, selected risks are transferred to insurance companies.

Compliance risks are countered by clear management structures and efficient organisational measures. Interna-

tional risks to the availability, reliability and efficiency of the IT systems are mitigated by constant monitoring,

adaptive measures and integrated community management. Safety standards and risks in connection with financ-

ing, currency fluctuations and the investment of liquid funds, are monitored and managed centrally. In particular,

effective measures have been taken to reduce counterparty risk relating to the investment of liquid funds.

Along with other international companies, Beiersdorf’s Brazilian subsidiaries are involved in tax proceedings on a

national level. As utilisation is not considered to be probable, no provisions for demands for back taxes have been

established. However, no conclusive assessment of the risk from the Group’s perspective is possible at present.

Beiersdorf also has potential obligations arising from antitrust proceedings, among other things. To the extent that

an outflow of resources embodying economic benefits is likely to be required to settle these obligations, provisions

were established for the pending antitrust proceedings. However, no conclusive assessment of the risk from the

Group’s perspective is possible at present.

market opportunities

once again, market performance was mixed in financial year 2013 and competition continued to increase in some

markets. Beiersdorf will supplement its corporate strategy, as manifested in its internal Blue Agenda programme,

to include additional emphases in 2014, so as to meet the challenges of tomorrow and achieve its objectives. The

company sees strong opportunities both in systematically expanding its presence in the emerging markets and in

consolidating its position in its European markets. It will drive this process by strengthening its brands – especially

nIVEA, Eucerin and La Prairie – and boosting its innovative power.


Beiersdorf will build on its sound financial structure and strong earnings position together with its dedicated and

highly qualified employees to continue exploiting the opportunities that arise in future with its internationally suc-

cessful brand portfolio. Extensive research and development activities resulting in successful, consumer-driven

innovations will be flanked by targeted marketing measures, strengthening Beiersdorf’s brand core and creating

enduring confidence among its consumers.

tesa continues to consider its electronics industry business as highly attractive, with double-digit growth rates

predicted. Due to the project-based nature of the business, however, the risk involved is also increasing. The auto-

motive area will maintain its status as a second growth market for global customers.

rISK MAnAGEMEnT AT THE HoLDInG CoMPAnY HEDGES FInAnCIAL rISKS

maxingvest ag manages risks belonging to the financial risks category. risks arising from the Group’s extensive

financial activities are identified and minimised at an early stage using specially implemented standard processes.

These standard processes include a quarterly risk report to the Management Board on the current situation in terms

of financial risk (currency risk, interest rate risk, liquidity risk and counterparty risk). These risk categories are subject

to proactive treasury management, and are mainly hedged centrally in accordance with established guidelines.

maxingvest ag employs various derivative financial instruments to manage its interest rate risk. These derivatives

are used exclusively to hedge interest-linked capital market measures. Financial instruments are used exclusively to

hedge operating transactions and the financial transactions required by the Company’s operations. numerous

quantitative and qualitative measures were introduced by Group Treasury Management to effectively mitigate

counterparty risk.

ACCounTInG-rELATED InTErnAL ConTroL SYSTEM

The maxingvest Group’s internal control system includes all policies, measures and methods used to ensure the

effectiveness, cost-effectiveness and propriety of financial reporting as well as to ensure adherence to the applicable

legal provisions. Legislation, accounting standards and pronouncements are analysed for their relevance and effects

and taken into account as necessary.

At the maxingvest Group, the internal control system consists of the internal management and monitoring system.

maxingvest ag’s Management Board has primarily entrusted the Group Controlling and reporting and Group

Financing units of maxingvest ag with responsibility for the internal control system.

maxingvest ag’s internal monitoring system consists of both process-integrated and process-independent monitor-

ing measures. Key components of process-integrated measures include automated IT process controls in addition

to manual process controls such as the principle of dual control and functional separation.

The Supervisory Board – and in particular the Finance and Audit Committee – and the Internal Audit unit respon-

sible for maxingvest ag and Tchibo, plus Beiersdorf AG’s Internal Audit department, are integrated into the

maxingvest Group’s internal monitoring system via process-independent audit activities.

039

With regard to the financial reporting processes, the external auditors are included in maxingvest ag’s control

environment via process-independent auditing activities. In this context, the prepared financial statements of

Tchibo and Beiersdorf and key consolidation adjustments are audited by the auditors and comprise the process-

independent monitoring measures in the area of financial reporting.

one component of the internal control system is the risk management system which, in the area of consolidated

financial reporting, focuses on the risk of misstatements in the consolidated bookkeeping and external reporting.

To ensure that risks are identified systematically at an early stage throughout the Group, the maxingvest Group has

set up a “monitoring system for the early detection of risks which could threaten the Group’s continued existence”

in accordance with section 91 (2) of the AktG. This is designed to recognise, manage and monitor not only those

risks that could threaten the Group’s continued existence but also other risks in the Group in good time. The audi-

tors of the consolidated financial statements assess the effective functioning of the risk early warning system in

accordance with section 317 (4) of the HGB; in the case of changes to the environment, the maxingvest Group

makes the necessary modifications to the system at short notice. As part of its monitoring activities, the Internal

Audit unit also reviews the functioning and the effectiveness of the system by conducting regular system checks.

Additional information on the risk and opportunity management system is presented at the beginning of the

report on opportunities and risks.

Use of IT systems

Accounting transactions at maxingvest ag and most of its subsidiaries are recorded by service companies. Financial

reporting by the consolidated subsidiaries and the consolidation process itself are performed using internal IT sys-

tems. Procedural instructions and standardised reporting formats support Group accounting and financial report-

ing for the subsidiaries included in the consolidated financial statements.

The consolidated financial statements at the level of maxingvest ag are prepared using a standardised consolidation

system. The relevant financial statements and the single-entity financial statements of the subsidiaries are imported

into and processed by this consolidation tool in order to prepare the consolidated financial statements.

Specific risks relevant for consolidated financial reporting

Specific risks relevant for financial reporting can result, for example, from unusual or complex transactions,

especially where these are time-critical at the end of the financial year. Moreover, transactions that are not

processed as a matter of routine involve a latent risk. Additional risks relevant for financial reporting result from

decisions on the recognition and measurement of assets and liabilities due to the scope of judgement that

necessarily has to be granted to employees. The outsourcing and transfer of accounting tasks to service companies

can also result in specific risks.

Key activities designed to ensure the propriety and reliability of the financial reporting

Measures within the internal control system that focus on the propriety and reliability of the financial reporting

ensure that transactions are recognised in full in a timely manner in accordance with the provisions of the Articles

of Association and of the law.


Control activities designed to ensure the propriety and reliability of the financial reporting comprise, among other

things, the analytical examination of matters and developments using specific indicators. The functional separation

of roles and responsibilities reduces the opportunities for fraud. In the area of general IT checks, the key general

controls are identified and documented. These relate to the areas of programme development, modifications to

programmes and databases, and access rights to programmes and data. This ensures that the automated controls

function properly.

The accounting policies to be applied by all companies in the maxingvest Group in relation to the preparation of

maxingvest ag’s consolidated financial statements have been defined in the “IFrS Accounting Manual” in order to

ensure the uniform measurement and presentation of the financial statements of all Group companies requiring

inclusion. Compliance with general accounting policies and practices is reviewed on an ongoing basis. In addition,

control activities designed to ensure the propriety and reliability of consolidated financial reporting include, among

other things, the reconciliation and reasonableness reviews of the single-entity financial statements and the finan-

cial statements of the Tchibo and Beiersdorf subgroups prepared before consolidation adjustments are performed.

The results of operating activities of the divisions or the Group companies and the functioning of the controls at

the process level are monitored by the management and the Supervisory Board as well as by the Internal Audit unit.

Cautionary note

It should be noted that even appropriately and effectively implemented systems cannot provide an absolute

guarantee that risks will be identified and managed. In particular, personal judgements, incorrect controls, criminal

acts, or other circumstances cannot be ruled out. If these do occur, they may restrict the effectiveness and

reliability of the internal control and risk management system. This is why even the Group-wide application of the

systems used cannot provide an absolute guarantee with respect to the correct, complete and timely recognition

of transactions and other matters in the financial reporting.

oVErALL ASSESSMEnT oF THE GrouP’S rISK SITuATIon

All risks and opportunities that, if they were to occur, could have a material effect on the maxingvest Group’s

course of business and hence on its future development were evaluated using its risk and opportunity management

system. There have been no structural changes in the risk situation compared with the previous year. Based on our

current assessment, there are no risks that could threaten the maxingvest Group’s continued existence.

Future opportunities for the maxingvest Group revolve around its strong brands and Tchibo’s model. The careful

and sustainable development of the operating companies’ brands results in consumer trust. Consistently

strengthening this trust by delivering continues to be the main task for the coming years. Focused research and

development activities, flanked by systematic marketing measures, form a solid basis for our customers’ trust.

Tchibo’s “Zukunft braucht Herkunft” strategy (Building our Future on Tradition) and Beiersdorf’s strategic pro-

gramme for the future, the Blue Agenda, offer a sound platform for healthy growth. These views underpin our

planning for the coming financial year.

041

REPoRT oN PoST-bALANCE SHEET DATE EVENTS

There were no significant events after the end of the year under review.

REPoRT oN EXPECTED DEVELoPmENTS

ExPECTED MACroEConoMIC DEVELoPMEnTS

The global economic situation is expected to continue to improve in 2014. The austerity programmes and political

uncertainty that impacted the industrialised nations as a result of the financial and economic crisis should no longer

have such a major effect. According to the World Bank, the industrialised nations, in addition to the emerging

markets, will be key growth drivers.

The Institut für Weltwirtschaft (IfW – Institute for the Wold Economy) expects German GDP to increase by 1.7 %

in 2014 – also in excess of 2013.

SECTor DEVELoPMEnTS

Handelsverband Deutschland (HDE – the German retail Federation) is expecting slight retail sales growth in 2014.

online sales are again expected to see significant growth, which should amount to 17 % in the coming year. The

sharp increase in online sales means that footfall will be weaker for conventional specialist retailers, driving forward

the structural shift in the retail sector.

A sufficient supply of raw coffee is expected for 2014. Prices are not expected to deteriorate further, despite the

slight supply surplus, as coffee prices in many cultivation areas are at the level of the production costs.

Beiersdorf will work together with its research and development and quality management functions to identify

alternative sources of supplies and to define more open specifications, further improving raw materials security for

its production facilities. This will also continue to reduce its dependence on individual suppliers and specific raw

materials. As in the past, strategic partnerships with suppliers will secure the availability of raw materials in 2014,

ensuring supplies for production facilities. overall, Beiersdorf expects moderate increases in its commodities

markets and will take targeted measures in the area of procurement to further minimise them.

Beiersdorf believes that the global growth rates in the cosmetics market relevant for the company will remain at

the prior-year level in 2014. It continues to expect low but stable rates of growth in the major European and north

American markets. The emerging markets and developing countries will make a positive contribution to overall

performance. Growth in Latin America is likely to weaken year-on-year, however. The challenge for the tesa

business segment in the coming year is likely to be to cater to different market speeds. Strong, dynamic growth in

the electrical industry in Asia contrasts with relative stability in the European markets. By contrast, north America

is likely to gain momentum from the automotive industry, while Latin America will participate in the positive market

performance.


TCHIBo

Tchibo is expecting revenues in 2014 to be on a level with the previous year. revenues in the online and single-

serving systems growth areas are forecast to be substantially higher, while a further structural adjustment to the

branch network and the retail price cuts implemented for coffee in 2013 will probably depress revenues. Tchibo

expects EBIT in 2014 to be stable year-on-year.

Investments will be made in locations that fit Tchibo’s strategy and in fine-tuning supply chain processes in the

online business. The investments will come from cash flows from operating activities.

BEIErSDorF

In its Consumer business segment, Beiersdorf is expecting revenue growth to outperform the market, with growth

of 4 % to 6 %, while the EBIT margin is expected to slightly exceed the prior-year figure.

revenues in the tesa business segment are expected to slightly outperform the market in 2014, with market growth

estimated at 2 % to 3 %. tesa’s EBIT margin from operations is expected to be slightly below the prior-year level.

Building on the forecasts for the two business segments, Consumer and tesa, Beiersdorf is expecting revenues to

grow by 4 % to 6 %. The EBIT margin from operations is expected to be up slightly on the previous year.

Beiersdorf’s investments will come from cash flows from operating activities.

ExPECTED FInAnCIAL STruCTurE

The maxingvest Group has a strong financial basis. net financial assets amounted to € 2,574 million in the reporting

period. The debt ratio was 40 % and Tchibo and Beiersdorf, the operating segments, generated high operational

and free cash flows. As a result, the maxingvest Group can finance its planned investment projects from funds

generated. In view of the expected earnings contributions from Tchibo and Beiersdorf, net financial assets should

continue to increase significantly in the next year, not taking into account any possible acquisitions in the forecast

period. Assuming these conditions materialise, an equity ratio of over 60 % is expected in 2014. We expect liquid-

ity to develop positively in 2014. The forecast earnings should also have a positive effect on net cash flow from

operating activities. This is expected to substantially exceed investments in non-current assets. The repayment of

the bond maturing in october will result in an outflow of € 612 million, significantly reducing holdings of cash and

cash equivalents and securities.

043

MAnAGEMEnT BoArD’S oVErALL ASSESSMEnT oF ExPECTED DEVELoPMEnTS AT MAxInGVEST AG (HGB SInGLE-EnTITY FInAnCIAL STATEMEnTS) AnD THE GrouP

our assessment of business developments in the coming year is based on the above assumptions.

maxingvest ag expects net income for the year to be significantly below the figure for 2013 in the forecast period.

The effects of the reversal of provisions in connection with previous equity investments and the sale of certain

hedging instruments had a positive effect on prior-year earnings. maxingvest ag’s net investment income will also

see a substantial decrease due to non-recurring effects in 2013. These were primarily due to dividends received,

which were attributable to corporation tax credits.

Taking the macroeconomic situation and planned developments at Tchibo and Beiersdorf into account, the

Management Board also expects a further slight improvement in both revenues and earnings before interest and

taxes for the maxingvest Group. Liquidity development will increase year-on-year. Thanks to expected earnings at

Tchibo and Beiersdorf, the Group’s operating subsidiaries, cash flow from operating activities is expected to

significantly exceed the previous year. The very good equity ratio seen in recent years will improve considerably.

The Management Board is convinced that the maxingvest Group remains well prepared to meet future challenges

thanks to its strong brands, proven and new products and dedicated employees.


045

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE ShEET 46

CONSOLIDATED INCOME STATEMENT 48

STATEMENT OF COMprEhENSIvE INCOME 49

STATEMENT OF ChANgES IN EquITy 50

CONSOLIDATED CASh FLOw STATEMENT 52

NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS 53

Basis of Presentation 53

Consolidation 57

Accounting Policies 66

Consolidated Balance Sheet Disclosures 80

Consolidated Income Statement Disclosures 109

Consolidated Cash Flow Disclosures 116

Segment Reporting 117

Other Disclosures 121

046 Consolidated finanCial statements

ASSETS in € million Note 31 Dec. 2013 31 Dec. 2012

NON-CurrENT ASSETS

Intangible assets (1) 5,335 5,308

Property, plant and equipment (2) 1,174 1,096

Non-current financial assets (3) 832 883

Income tax receivables 19 28

Other non-current assets 5 6

Deferred tax assets 1) (35) 168 162

7,533 7,483

CurrENT ASSETS

Inventories (4) 1,226 1,261

Trade receivables (5) 1,308 1,278

Other current financial assets (6) 351 153


Other current assets 1) (7) 154 144

Securities (8) 1,741 1,893

Cash and cash equivalents (9) 1,274 1,134

6,135 6,006

13,668 13,489

CONSOLIDATED BALANCE ShEET

1) The prior-year figures have been adjusted due to the retrospective application of IAS 19 (2011). Please refer to the disclosures in the section entitled “Changes in

accounting policies”.

047

EquITy AND LIABILITIES in € million Note 31 Dec. 2013 31 Dec. 2012

EquITy (10)

Subscribed capital 125 125

Capital reserves 173 173

Retained earnings 1) 4,825 4,423

Other components of equity – 7 55

Shares held by shareholders of maxingvest ag 5,116 4,776

Non-controlling interests 1) 3,117 2,980

8,233 7,756

NON-CurrENT LIABILITIES

Provisions for pensions and other post-employment benefits 1) (12) 554 539

Other non-current provisions (14) 107 113

Non-current financial liabilities (13) 581 1,244

Other non-current liabilities 3 4

Deferred tax liabilities 1) (35) 1,243 1,247

2,488 3,147

CurrENT LIABILITIES

Current provisions (14) 653 806

Income tax liabilities 135 187

Trade payables (15) 1,233 1,297

Other current financial liabilities (16) 755 110

Other current liabilities (17) 171 186

2,947 2,586

13,668 13,489




in € million Note 2013 2012

revenues (24) 9,603 9,608

Cost of sales (25) – 4,074 – 4,179

gross profit 5,529 5,429

Marketing and selling expenses (26) – 3,983 – 3,889

Research and development costs (27) – 154 – 159

General administrative expenses (28) – 420 – 410

Other operating income (29) 383 338

Other operating expenses (30) – 275 – 390

Operating profit (EBIT) 1,080 919

Financial income (31) 178 159

Financial expense 1) (32) – 182 – 164

Net financial income – 4 – 5

profit before tax 1,076 914

Income taxes 1) (35) – 327 – 298

Net profit 749 616

of which attributable to shareholders of maxingvest ag 1) 454 374

of which attributable to non-controlling interests 1) (36) 295 242

Basic/diluted earnings per share (in €) 1) (37) 123.95 96.32

CONSOLIDATED INCOME STATEMENT



049

2013 2012

in € million Total

Shareholders of

maxingvest ag

Non-

controlling

interests Total

Shareholders of

maxingvest ag

Non-

controlling

interests

Net profit 749 454 295 616 374 242

Changes in cash flow hedges 2 1 1 16 7 9

Deferred taxes on changes in cash flow hedges – 1 – 1 – – 5 – 2 – 3

Changes in cash flow hedges recog nised in other comprehensive income 1 – 1 11 5 6

Remeasurement gains and losses on avail able-for-sale financial assets 13 6 7 4 4 –

Deferred taxes on remeasurement gains and losses on available-for-sale financial assets – 4 – 2 – 2 – – –

remeasurement gains and losses on available-for-sale financial assets recognised in other comprehensive income 9 4 5 4 4 –

Exchange differences – 133 – 66 – 67 – 15 – 2 – 13

Other comprehensive income that will be subsequently reclassified to profit or loss – 123 – 62 – 61 – 7 – 7

Remeasurements of defined benefit pension plans 1) – 10 – 6 – 4 – 249 – 134 – 115

Deferred taxes on remeasurements of defined benefit pension plans 1) 3 2 1 77 42 35

remeasurements of defined benefit pension plans recognised in other comprehensive income – 7 – 4 – 3 – 172 – 92 – 80

Other comprehensive income that will not be subsequently reclassified to profit or loss – 7 – 4 – 3 – 172 – 92 – 80

Total other comprehensive income after tax – 130 – 66 – 64 – 172 – 85 – 87

Total comprehensive income 619 388 231 444 289 155

STATEMENT OF COMprEhENSIvE INCOME




Other components of equity

in € millionSubscribed

capital Capital reserves Retained earnings

Currency translation differences

Cash flow hedging instruments

Available-for-sale financial assets

Shareholders ofmaxingvest ag

Non-controlling interests Total

1 January 2012, before adjustment 125 173 4,808 47 – 4 5 5,154 2,944 8,098

Change in accounting policy due to IAS 19 (2011) – – – 44 – – – – 44 – 50 – 94

1 January 2012, after adjustment 125 173 4,764 47 – 4 5 5,110 2,894 8,004

Total comprehensive income 1) – – 282 – 2 5 4 289 155 444

Purchase of treasury shares – – – 600 – – – – 600 – – 600

Disposal of non-controlling interests – – 25 – – – 25 25 50

maxingvest ag dividend for the previous year – – – 48 – – – – 48 – – 48

Distribution paid to non-controlling interest shareholders for the previous year – – – – – – – – 94 – 94

31 December 2012 = 1 January 2013 1) 125 173 4,423 45 1 9 4,776 2,980 7,756

Total comprehensive income – – 450 – 66 – 4 388 231 619



31 December 2013 125 173 4,825 – 21 1 13 5,116 3,117 8,233

STATEMENT OF ChANgES IN EquITy



051

Other components of equity

in € millionSubscribed

capital Capital reserves Retained earnings

Currency translation differences

Cash flow hedging instruments

Available-for-sale financial assets

Shareholders ofmaxingvest ag

Non-controlling interests Total

1 January 2012, before adjustment 125 173 4,808 47 – 4 5 5,154 2,944 8,098

Change in accounting policy due to IAS 19 (2011) – – – 44 – – – – 44 – 50 – 94

1 January 2012, after adjustment 125 173 4,764 47 – 4 5 5,110 2,894 8,004

Total comprehensive income 1) – – 282 – 2 5 4 289 155 444

Purchase of treasury shares – – – 600 – – – – 600 – – 600

Disposal of non-controlling interests – – 25 – – – 25 25 50



31 December 2012 = 1 January 2013 1) 125 173 4,423 45 1 9 4,776 2,980 7,756

Total comprehensive income – – 450 – 66 – 4 388 231 619



31 December 2013 125 173 4,825 – 21 1 13 5,116 3,117 8,233



Operating profit (EBIT) 1,080 919

Income taxes paid – 322 – 284

Depreciation, amortisation and impairment losses of intangible assets and property, plant and equipment 166 226

Change in non-current provisions (excluding interest) – 11 – 53

Result on disposal of intangible assets and property, plant and equipment 2 – 8

Gain on business combination achieved in stages – – 9

Change in inventories 35 47

Change in receivables and other assets – 59 – 78

Change in liabilities and current provisions – 236 76

Cash flow from operating activities 655 836

Investments in non-current assets – 317 – 328

Payments for equity acquisitions (net of cash acquired) – – 25

Proceeds from divestments and the sale of non-current assets 21 61

Payments for the purchase of securities – 1,639 – 2,119

Proceeds from the sale of securities 1,601 1,583

Interest received 51 52

Proceeds from dividends and other financing activities 27 10

Cash flow from investing activities – 256 – 766

Free cash flow 399 70

Proceeds from loans – 563

Loan repayments – 11 – 16

Proceeds from the sale of equity instruments – 50

Payments for the purchase of equity instruments – – 600

Interest paid – 35 – 30

Other financial expenses paid – 43 – 12

maxingvest ag dividend – 48 – 48

Dividends paid to non-controlling interests – 94 – 94

Cash flow used in financing activities – 231 – 187

Effect of exchange rate changes on cash and cash equivalents – 47 –

Net change in cash and cash equivalents 121 – 117

Cash and cash equivalents at 1 January 1,108 1,225

Cash and cash equivalents at 31 December 1,229 1,108

For details of cash and cash equivalents see note 9 “Cash and cash equivalents”.

CONSOLIDATED CASh FLOw STATEMENT

053

NOTES TO ThE CONSOLIDATED FINANCIAL STATEMENTS

BASIS OF PRESENTATION

Information about the Company and the group

maxingvest ag (hereinafter also referred to as “the Company”) has its registered office at Überseering 18,

Hamburg, Germany, and is entered in the commercial register at the Hamburg Local Court under the number

HRB 21337.

The purpose of maxingvest ag and its subsidiaries (“maxingvest Group”) is, in the case of Tchibo, to source and sell

coffee, consumer merchandise, power, and services such as mobile communications services and travel. In the

Beiersdorf segment, it is to manufacture and distribute branded consumer goods (especially the NIVEA brand) in

the area of skin and body care, as well as to manufacture and distribute self-adhesive products and system

solutions for industry, craft businesses and consumers. The Holding company segment mainly comprises the

maxingvest Group’s asset and investment management activities.

The consolidated financial statements of maxingvest ag for the financial year from 1 January to 31 December 2013

were prepared by the Management Board on 21 March 2014 and subsequently forwarded to the Supervisory

Board for review and approval.

principles of accounting

The consolidated financial statements of maxingvest ag were prepared in accordance with the International

Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), including the

interpretations of IFRS issued by the International Financial Reporting Interpretations Committee (IFRIC), and the

supplementary provisions of German commercial law required to be applicable under section 315a (1) of the

Handelsgesetzbuch (HGB – German Commercial Code). All IFRS and IFRIC endorsed and adopted by the European

Commission as at 31 December 2013 have been applied.

As a rule, the consolidated financial statements are prepared under the historical cost convention. This does not

include either financial instruments belonging to the “available-for-sale financial assets”, “financial assets at fair

value through profit or loss” and “financial liabilities at fair value through profit or loss” categories or derivative

financial instruments, all of which are measured at fair value if fair value can be reliably determined. The carrying

amounts of any assets and liabilities recognised in the balance sheet that are hedged items in fair value hedges are

adjusted on the basis of fair value changes attributable to the hedged risks.

The consolidated financial statements are prepared in euros (€). Unless otherwise stated, all amounts are rounded

and given in millions of euros (€ million).

The financial year is the calendar year.


The classification in the balance sheet distinguishes between non-current and current assets and liabilities, some of

which are reported in detail by maturity in the notes to the consolidated financial statements. Assets and liabilities

are classified as current if they are due within twelve months after the balance sheet date.

The consolidated income statement was prepared using the cost of sales (function of expense) method. Under this

method, revenues are matched with the expenses incurred in generating these revenues; the expenses are allo-

cated to the production, marketing and sales, research and development, and general administrative functions.

Certain items were combined to enhance the clarity of presentation in the consolidated income statement and the

consolidated balance sheet. These items are disclosed and explained separately in the notes to the consolidated

financial statements.

Changes in accounting policies

The maxingvest Group applied the revised IAS 19 (2011) – “Employee Benefits” accounting standard for the first

time as at 1 January 2013. This had the following material effects on the consolidated financial statements: net

interest income/expense is recognised in income. This is the balance of the present value of the defined benefit

obligation and of any plan assets at the start of the period multiplied by the discount rate used in the measurement

of the obligation. This supersedes the expected return on plan assets previously recognised. Actuarial gains and

losses are recognised immediately and permanently under retained earnings in consolidated equity. The revision

also requires changes in defined benefit obligations and in the fair value of plan assets to be recognised immedi-

ately when they arise. Other amendments relate to new disclosures such as quantitative information on sensitivity.

The option to use the corridor method available under the previous version of IAS 19 has been abolished. The

standard was applied retrospectively. The first-time application of the revised IAS 19 as from financial year 2013

resulted in the following changes to the opening balance sheet as of 1 January 2012 and the prior-year periods

presented, as well as to the income statement and the statement of comprehensive income.

Income statement 01 Jan. – 31 Dec. 2012

in € million before restatement restatement after restatement

Operating profit (EBIT) 919 – 919

Financial income 159 – 159

Financial expense – 169 5 – 164

Net financial income – 10 5 – 5

profit before tax 909 5 914

Income taxes – 297 – 1 – 298

Net profit 612 4 616

of which attributable to shareholders of maxingvest ag 372 2 374

of which attributable to non-controlling interests 240 2 242

Basic/diluted earnings per share (in €) 95.83 0.49 96.32

055

Statement of comprehensive income 01 Jan. – 31 Dec. 2012

in € million before restatement restatement after restatement

Net profit 612 4 616

Other comprehensive income that will not be subsequently reclassi-fied to profit or loss

Remeasurements of defined benefit pension plans – – 249 – 249

Deferred taxes on remeasurements of defined benefit pension plans – 77 77

remeasurements of defined benefit pension plans recognised in other comprehensive income – – 172 – 172

Total comprehensive income 612 – 168 444

of which attributable to shareholders of maxingvest ag 379 – 90 289

of which attributable to non-controlling interests 233 – 78 155

Balance sheet 01 Jan. 2012 31 Dec. 2012

in € million before restatement restatement after restatement before restatement restatement after restatement

Total assets 12,959 2 12,961 13,458 31 13,489

Total equity 8,098 – 94 8,004 8,018 – 262 7,756

Total liabilities 4,861 96 4,957 5,440 293 5,733

If the maxingvest Group had not applied IAS 19 (2011), profit after tax for financial year 2013 would have been

€ 13 million lower, total comprehensive income would have been € 7 million lower and equity as at 31 December

2013 would have been € 267 million higher. The maxingvest Group made use of the exemption contained in IAS 19

(2011) and does not provide comparative prior-year figures for the sensitivity disclosures for the defined benefit

obligation that are required for the first time.

Apart from the need for additional notes disclosures, there were no material effects on the consolidated financial

statements resulting from the amendments to IFRS 7 – “Financial Instruments: Disclosures – Offsetting Financial

Assets and Financial Liabilities”, IFRS 13 – “Fair Value Measurement” and IAS 1 (2011) – “Presentation of Financial

Statements”, which were also required to be applied for the first time in financial year 2013.

The voluntary early application of the amendments to IAS 36 (2013) – “Impairment of Assets” in financial year 2013

did not have any effect. The amendments contained a correction to the disclosure requirements that were intro-

duced into IAS 36 by the new IFRS 13. They provide that the recoverable amount of a cash-generating unit or an

asset must only be disclosed if the entity has recognised or reversed an impairment loss during the reporting

period.

The other accounting policies correspond to those applied in the previous year.


Standards, interpretations and amendments issued but not yet required to be applied

The following standards and interpretations relevant for the maxingvest Group’s business operations have been

issued as at 31 December 2013, but are not yet required to be applied for the past financial year:

IFRS 9 – “Financial Instruments: Classification and Measurement”

The standard mainly contains rules governing the classification and measurement of financial assets and financial

liabilities, as well as a new general hedge accounting model. As yet, IFRS 9 does not specify a date for mandatory

first-time application.

IFRS 10 – “Consolidated Financial Statements” (as from/after 1 January 2014)

The standard contains a new definition of control that must be used to identify whether investees must be con-

solidated. As a result, there will be a single consolidation model for all controlled entities. The standard replaces

the consolidation guidance in IAS 27 and the rules laid down in SIC 12 – “Consolidation – Special Purpose Entities”.

IFRS 11 – “Joint Arrangements” (as from/after 1 January 2014)

IFRS 11 specifies the accounting treatment for joint arrangements. In addition, the new definition prohibits the use

of proportionate consolidation to account for joint ventures.

IFRS 12 – “Disclosure of Interests in Other Entities” (as from/after 1 January 2014)

The new standard contains all disclosure requirements for subsidiaries, joint arrangements, associates and struc-

tured entities.

IAS 19 (2013) – “Employee Benefits” (as from/after 1 January 2014)

The amendment contains an exemption relating to the recognition of contributions by employees or third parties

to pension plans. Companies are now permitted to recognise contributions by employees or third parties as reduc-

ing the current service cost in the period in which the relevant work was performed, provided that the contribu-

tions are not dependent on the number of years of service.

IAS 27 (2011) – “Separate Financial Statements” (as from/after 1 January 2014)

The amended version of IAS 27 contains changes resulting from the publication of IFRS 10. The provisions govern-

ing accounting for separate financial statements remain part of IAS 27 and have not been amended, in contrast to

the other parts of IAS 27, which have been replaced by the new IFRS 10.

IAS 28 (2011) – “Investments in Associates and Joint Ventures” (as from/after 1 January 2014)

The revised IAS 28 standard contains changes resulting from the publication of IFRS 11 and IFRS 12.

IAS 32 (2011) – “Financial Instruments: Presentation” (as from/after 1 January 2014)

The changes clarify the offsetting requirements. Above and beyond this, additional guidance on offsetting financial

assets and financial liabilities has been included in the standard.

IAS 39 (2013) – “Financial Instruments: Recognition and Measurement” (as from/after 1 January 2014)

The amendments are a reaction to legislative changes in the transparency requirements for, and regulation of, OTC

derivatives. In future, hedges will not be treated as having been reversed or terminated where novation with a

central counterparty is performed, provided that such novation is required by legislation or a regulator; this applies

even if a derivative has been formally derecognised.

057

“Investment Entities” – Amendments to IFRS 10, IFRS 12 and IAS 27 (as from/after 1 January 2014)

The amendments specify the definition of an investment entity and exempt such entities from consolidation

requirements in accordance with IFRS 10. Additional disclosure requirements for investment entities are set out in

IFRS 12 and IAS 27.

“Annual Improvements 2010–2012 Cycle” (as from/after 1 January 2014)

This resulted in amendments to seven IFRSs. The idea behind the Annual Improvements Project is to make non-

urgent but necessary amendments to existing IFRSs that are not implemented in other major projects.

“Annual Improvements 2011–2013 Cycle” (as from/after 1 January 2014)

This resulted in amendments to four IFRSs. The idea behind the Annual Improvements Project is to make non-

urgent but necessary amendments to existing IFRSs that are not implemented in other major projects.

Where the amendments or changes have already been adopted by the EU, the date of first-time application given

relates to the date they are required to be applied for the first time in the EU. Otherwise it relates to the date on

which they are required to be applied for the first time that has been specified by the IASB. The standards will be

applied at the latest in the year in which they are first required to be applied for entities in the EU.

The outstanding phases of the IFRS 9 project are being monitored and their effects will be analysed as a whole

once the last phase has been finalised.

The maxingvest Group does not expect any material effects on the consolidated financial statements to arise from

the first-time application of the new standards on consolidation (IFRS 10, 11 and 12) and the resulting changes to

IAS 27 and IAS 28.

With the exception of additional or modified disclosure requirements, the maxingvest Group does not expect any

material effects on the consolidated financial statements to arise from the first-time application of the other new

standards.

CONSOLIDATION

Consolidated group

In addition to maxingvest ag, the consolidated financial statements include 33 (previous year: 33) German and 173

(previous year: 174) international companies where, directly or indirectly, maxingvest ag has the power to govern

the entity’s financial and operating policy and obtain economic benefits from its activities.

In the financial year, three companies were wound up and one immaterial company was deconsolidated. In addi-

tion, three companies included in maxingvest ag’s consolidated financial statements were formed or included for

the first time.

The following table presents the full list of shareholdings held by maxingvest ag.


Name of the company

Location

Equity interest in %

hOLDINg COMpANy SuBgrOup

Subsidiaries in germany

BBG Beteiligungsgesellschaft mbH Gallin 82.50

maxingvest Zweite Beteiligungsgesellschaft mbH (“BG”) Gallin 100.00

Olymp Vermögensverwaltung GmbH Gallin 100.00

maxingvest Beteiligungsverwaltung GmbH Hamburg 100.00

Pack & Trink Getränkeservice GmbH Hamburg 100.00

Tchibo Anlagen-Verwaltungsgesellschaft mbH Hamburg 100.00

SCS Skin Care Studio GmbH Norderstedt 100.00

Subsidiaries abroad

Société Européenne de Recherche de Participation et d’Innovation économique S.A.S. FR, Creteil-Cedex 100.00

HMO Luxembourg S.a.r.l. LU, Luxembourg 100.00

Tchibo Holding Finance B.V. NL, Amsterdam 100.00

TChIBO SuBgrOup


Olymp Vermögensverwaltung GmbH & Co. Dienstleistungs-KG Gallin 100.00

Tchibo Markenverwaltungs GmbH & Co. KG Gallin 100.00

G.C. Breiger & Company GmbH Hamburg 100.00

International Coffee Partners GmbH Hamburg 20.00

Meister-Kaffee GmbH Hamburg 75.00

Meister-Kaffee GmbH & Co. Vertriebs KG Hamburg 75.00

Tchibo Coffee Service GmbH Hamburg 100.00

Tchibo Energie GmbH Hamburg 100.00

Tchibo GmbH Hamburg 100.00

Tchibo Manufacturing GmbH & Co. KG Hamburg 100.00

Tchibo Mobilfunk Beteiligungs-GmbH Hamburg 50.00

Tchibo Mobilfunk GmbH & Co. KG Hamburg 50.00

Tchibo Produktions GmbH Hamburg 100.00

Subsidiaries abroad

EDUSCHO (Austria) GmbH AT, Vienna 100.00

Tchibo (Austria) Group Finance GmbH AT, Vienna 100.00

Tchibo (Austria) Holding GmbH AT, Vienna 100.00

Tchibo Coffee Service (Austria) GmbH AT, Vienna 100.00

Tchibo Manufacturing (Austria) GmbH AT, Vienna 100.00

059

Name of the company

Location


TCHIBO BULGARIA EOOD BG, Sofia 100.00

Cetco Burundi Surl BI, Bujumbura 100.00

Tchibo Int. Ltd. CA, Mississauga 100.00

MM Meyer Markenverwaltung & Co. CH, Bremgarten 100.00

Luna Technology Systems LTS GmbH CH, Wallisellen 100.00

Tchibo (Schweiz) AG CH, Wallisellen 100.00

Tchibo Merchandising Hongkong LP CN, Hong Kong 100.00

Tchibo Merchandising Hongkong Ltd. CN, Hong Kong 100.00

Tchibo Coffee Service Czech Republic spol. s.r.o. CZ, Prague 100.00

Tchibo Praha spol. s.r.o. CZ, Prague 100.00

Tchibo Coffee International Ltd. GB, Epsom 100.00

Tchibo Great Britain Ltd. GB, Epsom 100.00

TCHIBO Budapest Kft. HU, Budapest 100.00

Tchibo Israel Ltd. IL, Tel Aviv 100.00

Cetco Ltd. KE, Nairobi 100.00

Tchibo Coffee Nederland B.V. NL, Eemnes 100.00

Tchibo Manufacturing Poland Sp.z o.o. PL, Marki 100.00

Tchibo Coffee Service Polska Sp.z o.o. PL, Warsaw 100.00

Tchibo Warszawa Sp.z o.o. PL, Warsaw 100.00

TCHIBO BRANDS S.r.l. RO, Bucharest 100.00

MTS ZAO RU, Moscow 100.00

TCHIBO C.I.S. LLC RU, Moscow 100.00

TCHIBO Slovensko spol. s.r.o. SK, Bratislava 100.00

Tchibo Kahve Mamülleri Dagitim ve Pazarlama Ticaret Limited TR, Istanbul 100.00

CETCO (TANZANIA) LIMITED TZ, Moshi 100.00

TOV Tchibo Ukraine UA, Kiev 100.00

Cetco (Uganda) Ltd. UG, Kampala 100.00

BEIErSDOrF SuBgrOup

Beiersdorf AG Hamburg 41.64

BEIErSDOrF Ag ShArEhOLDINgS


Allgemeine Immobilien- und Verwaltungsgesellschaft m.b.H. Baden-Baden 100.00

La Prairie Group Deutschland GmbH Baden-Baden 100.00

Produits de Beauté Logistik GmbH Baden-Baden 100.00

Produits de Beauté Produktions GmbH Baden-Baden 100.00

Beiersdorf Manufacturing Berlin GmbH Berlin 100.00

Beiersdorf Beteiligungs GmbH Gallin 100.00

GUHL IKEBANA GmbH Griesheim 10.00


Name of the company

Location


Beiersdorf Customer Supply GmbH Hamburg 100.00

Beiersdorf Hautpflege GmbH Hamburg 100.00

Beiersdorf Immo GmbH Hamburg 100.00

Beiersdorf Manufacturing Hamburg GmbH Hamburg 100.00

Beiersdorf Shared Services GmbH Hamburg 100.00

IKEBANA-Kosmetik GmbH Hamburg 100.00

NOIMMO Erste Projekt GmbH & Co. KG Hamburg 100.00

One tesa Bau GmbH Hamburg 100.00

Phanex Handelsgesellschaft mbH Hamburg 100.00

Tape International GmbH Hamburg 100.00

tesa Converting Center GmbH Hamburg 100.00

tesa Grundstücksverwaltungsges. mbH & Co. KG Hamburg 100.00

tesa SE Hamburg 100.00

tesa Werk Hamburg GmbH Hamburg 100.00

TRADICA Pharmazeutische GmbH Hamburg 100.00

Ultra Kosmetik GmbH Hamburg 100.00

tesa scribos GmbH Heidelberg 100.00

tesa Labtec GmbH Langenfeld 100.00

tesa Werk Offenburg GmbH Offenburg 100.00

Beiersdorf Manufacturing Waldheim GmbH Waldheim 100.00

Subsidiaries in Europe, excluding germany

Beiersdorf CEE Holding GmbH AT, Vienna 100.00

Beiersdorf Ges mbH AT, Vienna 100.00

La Prairie Group Austria GmbH AT, Vienna 100.00

tesa GmbH AT, Vienna 100.00

BEIERSDORF FINANCE SCS BE, Brussels 100.00

SA Beiersdorf NV BE, Brussels 100.00

SA tesa BE, Brussels 100.00

Beiersdorf Bulgaria EOOD BG, Sofia 100.00

tesa tape Schweiz AG CH, Bergdietikon 100.00

Beiersdorf AG CH, Reinach 100.00

La Prairie Group AG CH, Volketswil 100.00

Laboratoires La Prairie SA CH, Volketswil 100.00

Beiersdorf spol. s r.o. CZ, Prague 100.00

tesa tape s.r.o. CZ, Prague 100.00

tesa A/S DK, Birkerød 100.00

Beiersdorf A/S DK, Copenhagen 100.00

Beiersdorf Manufacturing Argentona, S.L. ES, Argentona 100.00

tesa tape, S.A. ES, Argentona 100.00

061

Name of the company

Location


La Prairie Group Iberia S.A.U. ES, Madrid 100.00

Beiersdorf Holding SL ES, Tres Cantos 100.00

Beiersdorf Manufacturing Tres Cantos SL ES, Tres Cantos 100.00

Beiersdorf SA ES, Tres Cantos 100.00

Beiersdorf Oy FI, Turku 100.00

tesa Oy FI, Turku 100.00

La Prairie Group France S.A.S. FR, Boulogne-Billancourt 100.00

Beiersdorf Holding France Sarl FR, Paris 100.00

Beiersdorf s.a.s. FR, Paris 99.91

tesa s.a.s. FR, Savigny-le-Temple 100.00

BDF Medical Ltd. GB, Birmingham 100.00

Beiersdorf UK Ltd. GB, Birmingham 100.00

La Prairie (UK) Limited GB, London 100.00

tesa UK Ltd. GB, Milton Keynes 100.00

Beiersdorf Hellas AE GR, Gerakas 100.00

tesa tape AE GR, Gerakas 100.00

Beiersdorf d.o.o. HR, Zagreb 100.00

Beiersdorf Kft. HU, Budapest 100.00

Tartsay Beruházó Kft. HU, Budapest 99.66

tesa tape Ragasztószalag Termelö ès Kereskedelmi Kft. HU, Budapest 100.00

Beiersdorf Ireland Ltd. IE, Dublin 100.00

Beiersdorf ehf IS, Reykjavik 100.00

Comet SpA IT, Concagno Solbiate 100.00

Beiersdorf SpA IT, Milan 100.00

La Prairie S.p.A. IT, Milan 100.00

tesa SpA IT, Vimodrone 100.00

Beiersdorf Kazakhstan LLP KZ, Almaty 100.00

Beiersdorf UAB LT, Vilnius 100.00

Guhl Ikebana Cosmetics B.V. NL, Almere 10.00

Beiersdorf Holding B.V. NL, Amsterdam 100.00

Beiersdorf NV NL, Amsterdam 100.00

tesa Western Europe B.V. NL, Amsterdam 100.00

tesa BV NL, Hilversum 100.00

Beiersdorf AS NO, Oslo 100.00

tesa AS NO, Oslo 100.00

Beiersdorf Manufacturing Poznan Sp. z.o.o. PL, Poznan 100.00

NIVEA Polska sp. z o.o. PL, Poznan 100.00

tesa tape Sp. z.o.o. PL, Poznan 100.00

Beiersdorf Portuguesa, Limitada PT, Queluz 100.00

tesa Portugal - Produtos Adhesivos, Lda. PT, Queluz 100.00


Name of the company

Location


Beiersdorf Romania SRL RO, Bucharest 100.00

tesa tape SRL RO, Cluj-Napoca 100.00

Beiersdorf d.o.o. Beograd RS, Belgrade 100.00

Beiersdorf LLC RU, Moscow 100.00

La Prairie Group (RUS) LLC RU, Moscow 100.00

tesa tape OOO RU, Moscow 100.00

Beiersdorf Aktiebolag SE, Gothenburg 100.00

Beiersdorf Nordic Holding AB SE, Gothenburg 100.00

tesa AB SE, Kungsbacka 100.00

Beiersdorf d.o.o. SI, Ljubljana 100.00

tesa tape posrednistvo in trgovina d.o.o. SI, Ljubljana 100.00

Beiersdorf Slovakia, s.r.o. SK, Bratislava 100.00

tesa Bant Sanayi ve Ticaret A.S. TR, Istanbul 100.00

Beiersdorf Ukraine LLC UA, Kiev 100.00

Subsidiaries in the Americas

Beiersdorf S.A. AR, Buenos Aires 100.00

tesa tape Argentina S.R.L. AR, Buenos Aires 99.75

Beiersdorf S.R.L. BO, Santa Cruz de la Sierra 100.00

tesa Brasil Limitada BR, Curitiba 100.00

Beiersdorf Industria e Comercio Ltda. BR, Itatiba 100.00

BDF NIVEA LTDA. BR, São Paulo 100.00

Beiersdorf Canada Inc. CA, Saint-Laurent 100.00

Beiersdorf S.A. CL, Santiago de Chile 100.00

tesa tape Chile SA CL, Santiago de Chile 100.00

Beiersdorf S.A. CO, Bogotá 100.00

tesa Tape Colombia Ltda CO, Santiago de Cali 100.00

BDF Costa Rica, S.A. CR, San José 100.00

Beiersdorf, SRL DO, Santo Domingo 100.00

Beiersdorf S.A. EC, Quito 100.00

BDF Centroamérica, S.A. GT, Guatemala City 100.00

tesa tape Centro America S.A. GT, Guatemala City 100.00

BDF Corporativo, S.A. de C.V. MX, Mexico City 100.00

BDF México, S.A. de C.V. MX, Mexico City 100.00

Technical Tape Mexico SA de CV MX, Mexico City 100.00

tesa tape Mexico SRL de CV MX, Mexico City 100.00

Beiersdorf Manufacturing México Servicios, S.A. de C.V. MX, Silao 100.00

Beiersdorf Manufacturing México, S.A. de C.V. MX, Silao 100.00

BDF Panamá S.A. PA, Panama City 100.00

HUB LIMITED S.A. PA, Panama City 100.00

063

Name of the company

Location


Beiersdorf S.A.C. PE, Lima 99.81

Beiersdorf S.A. PY, Asunción 100.00

BDF El Salvador, S.A. de C.V. SV, San Salvador 100.00

tesa tape inc. US, Charlotte, NC 100.00

LaPrairie.com LLC US, Edison, NJ 100.00

La Prairie, Inc. US, New York City, NY 100.00

Beiersdorf North America Inc. US, Wilton, CT 100.00

Beiersdorf, Inc. US, Wilton, CT 100.00

Beiersdorf S.A. UY, Montevideo 100.00

Beiersdorf S.A. VE, Caracas 100.00

Subsidiaries in Africa, Asia, Australia

Beiersdorf Middle East FZCO AE, Dubai 100.00

Beiersdorf Near East FZ-LLC AE, Dubai 100.00

Beiersdorf Australia Ltd AU, North Ryde, NSW 100.00

La Prairie Group Australia Pty. Ltd. AU, North Ryde, NSW 100.00

tesa tape Australia Pty. Ltd. AU, Sydney, NSW 100.00

Beiersdorf Daily Chemical (Guangzhou) Co., Ltd. CN, Guangzhou 100.00

La Prairie Hong Kong Ltd. CN, Hong Kong 100.00

tesa tape (Hong Kong) Ltd. CN, Hong Kong 100.00

La Prairie (Shanghai) Co. Ltd. CN, Shanghai 100.00

NIVEA (Shanghai) Company Limited CN, Shanghai 100.00

tesa (Shanghai) Trading Co. Ltd. CN, Shanghai 100.00

tesa tape (Shanghai) Co., Ltd. CN, Shanghai 100.00

tesa Plant Suzhou Co. Ltd. CN, Suzhou 100.00

Beiersdorf Daily Chemical (Wuhan) Co., Ltd. CN, Wuhan 100.00

Beiersdorf Daily Chemical (Hubei) Co., Ltd. CN, Xiantao 100.00

Beiersdorf Personal Care (China) Co., Ltd. CN, Xiantao 100.00

Beiersdorf Ghana Limited GH, Accra 100.00

P.T. Beiersdorf Indonesia ID, Jakarta 80.00

Beiersdorf India Pvt. Ltd. IN, Mumbai 51.00

Nivea India Pvt. Ltd. IN, Mumbai 100.00

tesa Tapes (India) Private Limited IN, Navi Mumbai 100.00

Beiersdorf Holding Japan Yugen Kaisha JP, Tokyo 100.00

La Prairie Japan K.K. JP, Tokyo 100.00

Nivea - Kao Co., Ltd. JP, Tokyo 60.00

tesa tape K.K. JP, Tokyo 100.00

Beiersdorf East Africa Limited KE, Nairobi 100.00

Beiersdorf Korea Ltd. KR, Seoul 100.00

La Prairie Korea Ltd KR, Seoul 100.00


Name of the company

Location


tesa tape Korea Ltd. KR, Seoul 100.00

Beiersdorf S.A. MA, Casablanca 100.00

tesa tape (Malaysia) Sdn. Bhd. MY, Kajang 100.00

tesa tape Industries (Malaysia) Sdn. Bhd. MY, Kajang 99.99

Beiersdorf (Malaysia) SDN. BHD. MY, Petaling Jaya 100.00

Medical-Latex (DUA) SDN. BHD. MY, Senai 100.00

Beiersdorf Philippines Incorporated PH, Bonifacio Global City 100.00

Beiersdorf Singapore Pte. Ltd. SG, Singapore 100.00

Singapore Plastic Products Pte. Ltd. SG, Singapore 100.00

tesa Plant (Singapore) Pte. Ltd. SG, Singapore 100.00

tesa tape Asia Pacific Pte. Ltd. SG, Singapore 100.00

Beiersdorf (Thailand) Co., Ltd. TH, Bangkok 100.00

tesa tape (Thailand) Limited TH, Bangkok 90.10

Nivea Beiersdorf Turkey Kozmetik Sanayi ve Ticaret A.S.1) TR, Istanbul 100.00

NIVEA (Taiwan) Ltd. TW, Taipeh 100.00

Beiersdorf Vietnam LLC VN, Ho Chi Minh City 100.00

Beiersdorf Consumer Products (Pty.) Ltd. ZA, Umhlanga 100.00

Significant acquisitions in 2013

The maxingvest Group did not make any significant acquisitions in the period under review.

In the previous year, Beiersdorf had acquired the remaining 50 % of the shares and voting rights in EBC Eczacıbaşı-

Beiersdorf Kozmetik Ürünler Sanayi ve Ticaret A.S. (Turkey) – now: NIVEA Beiersdorf Turkey (Turkey). The purchase

price amounted to € 29 million and the net cash outflow was € 25 million. The net assets acquired (€ 12 million)

comprised assets acquired of € 21 million and liabilities assumed of € 9 million. Since the acquisition was made

shortly before the reporting date, a preliminary purchase price allocation was performed as at 31 December 2012.

In the course of purchase price allocation in accordance with IFRS 3, an amount of € 6 million was recognised for

a reacquired exclusive sales right, and goodwill of € 30 million was recognised. Purchase price allocation was final-

ised on 30 June 2013 and did not result in any adjustments in comparison with the preliminary purchase price

allocation.

Significant divestments in 2013

The maxingvest Group did not make any significant divestments in the period under review.

In the previous year, all shares in tesa Bandfix AG (Switzerland) were sold at a loss of € 10 million.

1) This company has not been allocated to the Europe excluding Germany region since the beginning of 2013..

065

Consolidation methods

The financial statements of the companies included in the consolidated financial statements are prepared uni-

formly as at 31 December in accordance with the accounting policies applied by the maxingvest Group.

Subsidiaries are fully consolidated from the acquisition date, meaning the date on which the Group obtains control.

They cease to be included in the consolidated financial statements as soon as the parent loses control.

Acquisition accounting uses the purchase method, under which the cost of the business combination is allocated

to the identifiable assets acquired, and liabilities and contingent liabilities assumed, based on their fair value at the

acquisition date. Any excess of cost over net assets acquired is recognised as goodwill.

The cost of an acquisition is determined as the total of the consideration transferred, measured at fair value at

the acquisition date, and any non-controlling interest in the acquiree. For each business combination, any non-

controlling interest in the acquiree is measured either at fair value or at the proportionate share of the acquiree’s

identifiable net assets. The transaction costs incurred in a business combination are recognised as an expense.

Profit and equity of Group companies attributable to non-controlling interests are presented separately in the

consolidated income statement and as a component of equity in the consolidated balance sheet. In the case of

successive purchases of the shares of subsidiaries, the difference between the cost of the new shares and the non-

controlling interests previously recognised in the Group for these shares is recognised in other comprehensive

income. In the case of step acquisitions, interests held on the date that control is obtained are remeasured, with

any adjustments to previously recognised assets and liabilities being recognised in profit or loss. Subsequent adjust-

ments of contingent consideration are recognised in the income statement.

Income and expenses, receivables and liabilities as well as intercompany profits and losses between com panies

included in the consolidated financial statements are eliminated. Deferred taxes are recognised for the tax effects

of consolidation adjustments.

Losses at a subsidiary are attributed to the non-controlling interest even if this results in a negative balance.

A change in an ownership interest in a subsidiary that does not result in a loss of control is accounted for as a

transaction within equity.

Currency translation

The euro is the functional currency and presentation currency of maxingvest ag.

Each company within the Group determines its own functional currency. The items contained in the financial state-

ments of the respective company are measured using that functional currency. Foreign currency trans actions are

initially translated to the functional currency at the exchange rate for the foreign currency prevailing at the trans-

action date. Non-monetary items that were measured at historical cost in a foreign currency are translated at the

rate prevailing at the transaction date. Monetary assets and liabilities in foreign currency are translated into the

functional currency at the closing rate. All exchange differences are recognised in the result for the period.


As the foreign subsidiaries are financially, economically and organisationally independent of the parent, the func-

tional currency is in each case the local currency.

The assets and liabilities of foreign subsidiaries whose functional currency is not the euro are translated into euros

at the closing rate at the balance sheet date. Income and expenses are translated at average exchange rates for the

financial year. Any resulting exchange differences are recognised as an adjustment item for currency translation in

equity.

Changes in exchange rates for currencies that are material for the consolidated financial statements are presented

in the following table:

2013 2012

€1= ISO code Average rate Closing rate Average rate Closing rate

US dollar USD 1.3308 1.3791 1.2932 1.3194

British pound GBP 0.8501 0.8337 0.8119 0.8161

Chinese yuan CNY 8.1733 8.3491 8.1451 8.2207

Hong Kong dollar HKD 10.3231 10.6933 10.0296 10.2260

Swiss franc CHF 1.2291 1.2276 1.2044 1.2072

Japanese yen JPY 130.1817 144.7200 103.4892 113.6100

Polish zloty PLN 4.2134 4.1543 4.1677 4.0740

ACCOUNTING POLICIES

Intangible assets

patents, trademarks, licences and similar

Purchased patents, trademarks, licences and similar items are measured at cost on initial recognition and, if finite-

lived, amortised over that life (usually five to ten years) using the straight-line method. The cost of intangible assets

acquired in a business combination is their fair value at the acquisition date.

Indefinite-lived intangible assets (for instance, trademarks) are not amortised.

goodwill

If, at the acquisition date, the cost of a business combination exceeds the fair value of the identifiable assets,

liabilities and contingent liabilities, the difference is recognised as goodwill. Goodwill is not amortised.

067

research and development costs

Research and development costs are recognised as expenses in the period in which they are incurred. The excep-

tion to this rule relates to development costs that meet all the criteria for recognition as internally generated

intangible assets set out in IAS 38 – “Intangible Assets”. In the maxingvest Group, this essentially applies to

internally developed software, which is recognised in the amount of the directly attributable development costs.

Internally generated intangible assets are amortised using the straight-line method over their expected useful lives,

which generally do not exceed five years. An exception are patents, which are amortised over their legally granted

terms.

The useful lives, residual values and methods of amortisation of finite-lived intangible assets are reviewed annually

and adapted where necessary. Goodwill, indefinite-lived intangible assets and intangible assets that are not yet

available for use are tested for impairment at least once a year.

Intangible assets are derecognised if they are disposed of or if no further economic benefits are expected from

their use or disposal.

property, plant and equipment

Items of property, plant and equipment are recognised at cost and reduced by straight-line depreciation over their

expected useful lives. Property, plant and equipment are depreciated pro rata in the year of acquisition.

The cost of internally developed items of property, plant and equipment is determined on the basis of direct costs

and production-related overheads. Borrowing costs are recognised as a current expense where they do not relate

to interest incurred in the production of qualifying assets. Third-party grants reduce cost. Cost also includes the

estimated costs of dismantlement and removal of items of property, plant and equipment or restoration of the

site on which they are located. If an item of property, plant and equipment consists of several components with

different useful lives, the individually significant components are depreciated over their separate useful lives.

Maintenance and repair costs are recognised as expenses when they are incurred. Major renovations or improve-

ments that significantly increase production capacity or the useful life of an asset are capitalised. Components

previously included are recognised accordingly as disposals.

If an item of property, plant and equipment is disposed of or if no further economic benefits are expected from its

use or disposal, the carrying amount of the item is derecognised. The gain or loss on disposal of an item of

property, plant or equipment is the difference between the net disposal proceeds and the carrying amount of the

item and is recognised in other operating income or other operating expenses at the date of derecognition.


Depreciation is based mainly on the following useful lives:

Buildings 10 – 33 years

Technical equipment and machinery 5 – 15 years

Other equipment, operating and office equipment 3 – 15 years

The useful lives, residual values and methods of depreciation of items of property, plant and equipment are

reviewed at the end of each financial year and adapted where necessary.

Impairment of non-financial assets

Goodwill, indefinite-lived intangible assets and intangible assets that are not yet available for use are tested for

impairment when there are specific indications that they may be impaired, or at least once a year, while other

intangible assets with finite useful lives, items of property, plant and equipment and other non-current non-

financial assets are tested for impairment only when there are specific indications that they may be impaired. For

this purpose, goodwill is allocated as of the acquisition date to the cash-generating unit of the Group that should

benefit from the synergies of the business combination. Indications of possible impairment may include, for

example, changes in the competitive environment, market growth forecasts, technological developments or

current replacement costs.

An impairment loss is recognised in the income statement if the asset’s recoverable amount is less than its carrying

amount. As a rule, the recoverable amount is measured for each asset individually. If this is not possible, it is

measured on the basis of a group of assets or on the basis of a cash-generating unit. Goodwill is tested for impair-

ment by measuring the recoverable amount of the cash-generating unit to which the goodwill in question relates.

The recoverable amount is the higher of fair value less costs to sell and value in use. Fair value less costs to sell is

the amount obtainable from the sale of an asset in an arm’s length transaction, less the costs of disposal. As a rule,

value in use is measured on the basis of the estimated future cash flows expected to be derived from an asset’s use

and disposal using the discounted cash flow method. The cash flows are derived from the business plans, with

consideration given to current developments. They are discounted using capitalisation rates that reflect the rates

for equivalent risk at the time of the impairment test.

The recoverable amount of indefinite-lived trademarks is measured using the relief from royalty method. This

method estimates the cost savings that arise as a result of the Group itself holding the brands and not having to

pay a licence fee to a licensor. The recoverable amount of trademarks is measured by discounting the cost savings

using a capitalisation rate that reflects the rate for equivalent risk at the time of the impairment test.

If the reason for an impairment loss recognised in prior years for an asset other than goodwill no longer applies,

the impairment loss is reversed up to a maximum of the asset’s depreciated cost.

Further details on the impairment testing of goodwill and indefinite-lived trademarks can be found in note 1

“Intangible assets”.

069

Leases

Agreements that convey the right to use an asset for an agreed period of time in return for payment qualify as

leases. This applies even where the agreement does not specifically provide for the transfer of such a right. The

maxingvest Group uses movable and immovable items of property, plant and equipment as a lessee and is a lessor

of movable items of property, plant and equipment in its Coffee Service business. An assessment is made whether

beneficial ownership of the leased asset is attributable to the lessee (finance lease) or to the lessor (operating lease)

depending on whether the risks and rewards incidental to ownership of the asset have been transferred. Where

the Group is the lessee under a finance lease, the leased asset and a corresponding financial liability are recognised

in the financial statements. The asset and liability are measured at the lower of the present value of the minimum

lease payments or the fair value of the leased asset. In the case of an operating lease, the maxingvest Group

recognises the lease payments as an expense using the straight-line method over the term of the lease. Where the

maxingvest Group is a lessor, leased assets subject to operating leases are recognised in the financial statements

at cost and depreciated to their residual values on a straight-line basis over their useful lives.

Inventories

Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling

price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary

to make the sale. The cost of inventories is measured using the weighted average method. In ad d i tion to direct

costs, cost includes proportionate indirect materials and production costs as well as production-related deprecia-

tion. Cost also comprises the proportionate costs of occupational pension plans, including voluntary social benefits,

and production-related administrative expenses. Borrowing costs to acquire or produce inventories are not capital-

ised because the inventories purchased are already prepared for their intended sale or are not subject to any

lengthy production processes.

Financial instruments

Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity

instrument of another. Financial instruments are recognised as soon as the Group becomes a party to the contrac-

tual provisions of the financial instrument. If, however, the trade and settlement date of the financial asset should

differ, the settlement date shall apply for the initial recognition.

Financial assets within the meaning of IAS 39 – “Financial Instruments: Recognition and Measurement” are classi-

fied into the following categories in the maxingvest Group:

The “financial assets at fair value through profit or loss” category comprises derivative financial assets not

included in hedging relationships that are reported in current and non-current financial assets.

The “loans and receivables” category mainly comprises trade receivables, securities, originated loans and

advances reported in current and non-current financial assets, and cash and cash equivalents. Cash includes cash

at banks, cash on hand and cheques.

The “held-to-maturity investments” category mainly covers investments in fixed-income securities as well as

investments in government and corporate bonds.


The “available-for-sale financial assets” category covers financial instruments that are not allocated to any of

the aforementioned categories. These are reported in current and non-current financial assets. In the maxingvest

Group, this category includes in particular investments in fixed-income securities, equity investments and invest-

ments in private equity funds.

Financial liabilities regularly establish a right to deliver cash or another financial asset. In the Group, financial

liabilities include in particular the euro debut bond issued by maxingvest ag, liabilities to banks, trade payables and

derivative liabilities.

In the maxingvest Group, financial liabilities within the meaning of IAS 39 are classified under the following

cate gories:

The “financial liabilities at fair value through profit or loss” category mainly covers the euro debut bond

issued by maxingvest ag reported in current financial liabilities.

The “other financial liabilities” category mainly covers liabilities to banks, trade payables and other current and

non-current financial liabilities.

The Group determines the classification of its financial assets and liabilities at the time of initial recognition and

examines this classification at the end of every financial year, if this is permissible and appropriate.

When financial instruments are initially recognised, they are measured at their fair value. In the case of financial

instruments that are not recognised at fair value through profit or loss, transaction costs that can be directly

allocated to the acquisition of the financial instrument are also included.

After initial recognition, available-for-sale financial assets are measured at their fair value, and any gains or losses

are recognised in a separate equity item net of deferred taxes. At the time when the financial investment is

derecognised, the accumulated gains or losses recognised directly in equity are recognised in the consolidated

income statement. Financial instruments in the “loans and receivables” and “other financial li abilities” categories

are measured at amortised cost after initial recognition using the effective interest me thod (including transaction

costs). Financial instruments in the “financial assets at fair value through profit or loss” and “financial liabilities at

fair value through profit or loss” categories are measured at fair value after initial recognition.

The fair value of financial assets that are traded on regulated markets is determined by reference to the quoted

market price on the balance sheet date. The fair value of financial investments for which there is no active market

is determined by applying appropriate valuation techniques, if this can be done reliably. The fair value of receiv-

ables, other assets and liabilities carried at amortised cost is determined on the basis of expected cash flows using

reference interest rates for equivalent risk structures and maturities at the balance sheet date.

071

The maxingvest Group has used the option to designate financial liabilities as at fair value through profit or loss at

the time of their initial recognition. The option was exercised when measuring the euro debut bond issued in

October 2004 in order to avoid inconsistencies in the measurement of bonds and allocated hedging instruments.

The fair value of the euro debut bond is determined by reference to the official price published on the Frankfurt

Stock Exchange at the balance sheet date.

Derivative financial instruments

Derivative financial instruments are measured at fair value. In the case of derivative financial instruments that are

traded on active markets, fair value corresponds to the market price on the balance sheet date. In the case of

derivative financial instruments that are not traded, fair value is determined using accepted financial techniques.

When hedges are entered into, certain derivatives are allocated to certain hedged items (underlyings) to hedge the

exposure to changes in the fair value of a recognised asset or to hedge the cash flows from a liability.

Derivatives classified as fair value hedges are measured at their fair value. Any resulting changes in fair value are

recognised in profit or loss. The carrying amount of the hedged asset or liability is adjusted for the changes in fair

value attributable to the hedged risk. Gains or losses resulting from changes in fair value are recognised in profit

or loss for the period. If an unrecognised firm commitment is designated as a hedged item, the subsequent cumu-

lative changes in the fair value of the firm commitment are recorded as an asset or liability in the balance sheet

under current or non-current assets or liabilities. The changes in fair value attributable to the hedged risk are also

recognised in the income statement.

Cash flow hedges serve to hedge fluctuations in cash flow from recognised assets, firm commitments or highly

probable forecast transactions. Changes in the fair value of a hedging instrument that forms part of a highly

effective cash flow hedge are recognised in other comprehensive income net of any related deferred taxes. The

ineffective portion is recognised in profit or loss. If the cash flow hedge results from the recognition of an asset or

a liability, the gains or losses that were previously recognised directly in equity are removed from equity and

included in the initial measurement of the acquisition cost or other carrying amount of the asset or liability.

If the forecast transaction or firm commitment is no longer expected to occur, the amounts previously taken

directly to equity are transferred to profit or loss. If the hedging instrument expires or is sold, terminated or

exercised without being replaced or rolled over into another hedging instrument, the cumulative gain or loss from

the hedging instrument originally recognised directly in equity continues to be reported in equity until the firm

commitment or forecast transaction has occurred.

Derivative financial instruments not designated as hedging instruments are classified as financial assets at fair value

through profit or loss and measured at fair value. Changes in fair value are included in profit or loss for the period.


The fair value of foreign exchange contracts is determined on the basis of the exchange rates on the forward

exchange market at the balance sheet date. The fair value of commodity futures contracts is determined on the

basis of current commodity futures prices for comparable contracts on the commodity futures market at the report-

ing date.

The positive (negative) fair values of derivative financial instruments are reported in current or in non-current finan-

cial assets (current or non-current financial liabilities), depending on their maturity.

The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liabil-

ity in an orderly transaction between market participants at the measurement date. When measuring fair value, it

is assumed that the underlying transaction on which the price is based takes place in either the principal market or

the most advantageous market that the maxingvest Group has access to. The price is measured using the assump-

tion that market participants would base pricing on. All financial instruments recognised at fair value in the financial

statements are categorised into the following hierarchy levels in accordance with IFRS 13:

Level 1: fair values that are measured using quoted prices in active markets.

Level 2: fair values that are measured using valuation techniques whose significant inputs are based on

directly or indirectly observable market data.

Level 3: fair values that are measured using valuation techniques whose significant inputs are not based on

observable market data.

Financial instruments regularly measured at fair value are reassessed at the end of the financial year to determine

whether reclassifications have to be made between the levels of the hierarchy. The fair value of financial instru-

ments carried at amortised cost is determined on the basis of the expected future cash flows, using the benchmark

interest rates for matching risks and maturities at the balance sheet date.

Impairment of financial assets

If there are specific indications that financial assets or groups of financial assets may be impaired, they are tested

for impairment. Any impairment established or any reversal of impairment losses in subsequent periods is

generally recognised in profit or loss. In the case of available-for-sale equity instruments, a significant or prolonged

decline in the fair value below its cost is recognised as an impairment loss in profit or loss. In the case of available-

for-sale financial assets, a loss previously recognised in equity is then also recognised in profit or loss. The sub-

sequent reversal of an impairment loss on available-for-sale equity instruments is not recognised in profit or loss.

The subsequent reversal of an impairment loss on debt instruments is recognised in profit or loss if the increase in

the fair value can be clearly attributed to an event occurring after the recognition of the earlier impairment in

profit or loss.

073

In the case of trade receivables, identifiable risks are accounted for by appropriate valuation allowances that

adequately reflect the expected risk of default. Valuation allowances on receivables are estimated mainly on the

basis of payment history and by taking account of the age structure, a substantial deterioration in creditworthiness

or a high probability that a debtor will become insolvent, and changes in the political and macroeconomic environ-

ment. Further details on valuation allowances for doubtful receivables can be found in note 5 “Trade receivables”.

Derecognition of financial assets and financial liabilities

A financial asset is derecognised when the Company loses control of the contractual rights that comprise the finan-

cial asset. A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled,

or expires.

provisions for pensions and other post-employment benefits

Defined contribution and defined benefit plans

The maxingvest Group makes provision for the retirement of eligible employees either directly or through legally

independent pension and support funds. Occupational pension plans in the Group are both defined contribution

and defined benefit plans. The payments vary, depending on the legal, economic and tax situ ation in the country

concerned, and are generally based on length of service, compensation and the beneficiary’s position in the Com-

pany. The direct and indirect obligations consist of obligations under existing pensions and entitlements to future

pensions and other post-employment benefits payable.

The pension obligations under defined benefit plans are calculated using the projected unit credit method in

accordance with IAS 19 – “Employee Benefits”. As an employer, the maxingvest Group undertakes to make com-

mitted pension payments and to fund these by recognising pension provisions or via plan assets. The obligations

under expected benefit payments are allocated over the entire service life of the employees. Actuarial figures are

calculated each year for the pension plans. The calculation of pension obligations reflects market rates of interest,

wage/salary, pension and staff turnover trends, and probabilities of death and disability. Measurement is based on

the conditions specific to the country concerned.

To measure pension provisions, the fair value of plan assets, taking into account the asset ceiling rules if there are

any surplus plan assets, is deducted from the present value of pension obligations. This results in the net defined

benefit liability or asset.

The pension expense from defined benefit obligations comprises the past service cost and net interest expense

components, which are recognised in profit or loss, as well as the expenses resulting from remeasurements due to

adjustments, which are recognised in other comprehensive income.

Past service cost contains the expense for the new benefits additionally vested in the reporting period, all effects

of curtailments due to the reduction in employees entitled to pension benefits, and plan amendments attributable

to past service periods, as well as all effects arising from settlements that were not already provided for in the plan.


The net interest expense for the financial year is calculated by applying the discount rate calculated at the begin-

ning of the financial year to the net pension obligation calculated at this point in time. The various discount rates

are generally determined based on the yields of high-quality corporate bonds with appropriate maturities and

currencies. In the reporting period, the bonds used had been given a minimum of an AA rating by well-known

rating agencies.

Actuarial gains or losses resulting from changes in expectations regarding life expectancy, pension trends, salary

developments, or the discount rate compared with the assessment at the start of the period or compared with

actual developments during the period are recognised directly in other comprehensive income after adjustment for

deferred taxes in the period in which they arise.

Similarly, differences between the return (interest) on plan assets calculated at the beginning of the period and the

return on plan assets actually recorded at the end of the period, as well as the change to any asset ceiling if this

differs from the assumed return, are also recognised in other comprehensive income.

Reclassification of the remeasurements reported in other comprehensive income to profit or loss in subsequent

periods is not permitted.

Certain employees of the maxingvest Group also receive deferred compensation. Deferred compensation repre-

sents a direct commitment by which the employer contractually commits to grant the employee or his or her

survivors pension benefits under certain conditions, for instance disability or when a certain age is reached. The

employees forego payment of part of their wages while they are employed and receive a direct commitment as

compensation that represents a pension claim against the employer. In order to finance the benefits from the direct

commitment, the maxingvest Group purchases a pension liability policy whose premiums are financed entirely

from the deferred wage components. The pension liability policy is pledged to the employee, so that it remains

formally in the possession of the Group; however, in the event of insolvency, the Group and its creditors cannot

dispose of the asset.

The defined contribution plans are primarily related to domestic or foreign state or statutory pension funds to

which the maxingvest Group contributes. The employer contributions to these pension funds are recognised in the

income statement when incurred. The maxingvest Group has no obligations arising from these defined contribu-

tion plans beyond the payment of these contributions.

The expenses relating to these defined benefit and defined contribution plans are contained in the costs of the

consuming functions. The net interest expense to be recognised in profit and loss is shown in the financial income.

075

Termination benefits

The maxingvest Group pays termination benefits when employees’ work agreements are terminated as part of

restructuring measures. In certain countries, the law also requires the maxingvest Group to pay termination benefits

in the event of a reduction in the workforce. Termination-related expenditure in the course of restructurings is only

incurred if management decides on a plan that leads to future termination benefit payments and has either started

to implement the restructuring plan or has raised a valid expectation in those affected by it that the restructuring

will be carried out. Termination benefits are uncertain obligations that are recognised in the amount of the best

estimate.

Other long-term employee benefits

A large number of maxingvest Group employees are granted anniversary bonuses after they have been employed

with the Group for a predetermined number of years. The corresponding obligations are also measured using the

projected unit credit method.

In addition, the German companies included in the consolidated financial statements allow employees to enter into

partial retirement agreements governing early retirement from the relevant company. Provisions for partial retire-

ment agreements are accounted for in the consolidated financial statements as other long-term employee benefits.

The obligation is recognised from the point at which the Company can no longer effectively avoid the obligation

and recognition continues over the vesting period. This comprises the years of service in which the claim to the

bonus payments vests with the employee. If the eligibility for partial retirement agreements depends on previous

periods of service by the employee concerned, these are taken into account on initial recognition and during sub-

sequent accounting for the obligation. To this extent, past service cost for these obligations is recognised on initial

recognition of the obligation.

Other provisions

Provisions are recognised for current (legal or constructive) obligations to third parties or employees as a result of

a past event where the probability of settlement is greater than 50 % and the amount of the obligation can be

reliably measured. If the Group expects at least partial reimbursement for a provision, the reimbursement is recog-

nised as a separate asset if it is highly probable that it will be received. The expense for recognition of the provision

is reported in the income statement less the reimbursement. Non-current provisions are discounted if the time

value of money is material.

Provisions for restructuring measures are only recognised if there is a detailed, formal restructuring plan in place

and a valid expectation has been raised in those affected by it that the restructuring measures will be implemented.

In measuring restructuring provisions, only the expenditure directly incurred by the restructuring and not associ-

ated with the Company’s ongoing activities is taken into account.


Contingent liabilities

Contingent liabilities are either possible obligations whose existence will be confirmed only by the occurrence of

one or more uncertain future events not wholly within the control of the maxingvest Group, or present obligations

that are unlikely to lead to an outflow of resources, or where the amount of the outflow of resources cannot be

measured reliably. In accordance with IAS 37 – “Provisions, Contingent Liabilities and Contingent Assets”, con-

tingent liabilities are not recognised in the balance sheet. If an outflow of economic benefits is not unlikely,

contingent liabilities are disclosed in the notes.

Income and expenses

Revenues include all proceeds that result from the typical business activities of the maxingvest Group com panies

and are reported net of value added tax. Revenues are recognised when the goods and products have been deliv-

ered and/or the services rendered and the rewards and risks incidental to ownership have passed to the buyer.

Discounts, customer bonuses, rebates and electricity tax are deducted from revenues, as is con sideration payable

to trading partners in those cases in which the consideration is not matched by a distinct product or service

supplied whose fair value can be estimated reliably. The existence of return rights is reflected in the recognition

and measurement of revenues.

Award credits arising in the form of “TreueBohnen” (loyalty points) in connection with the “PrivatCard” customer

loyalty programme in the Tchibo segment are recorded in accordance with IAS 18.13 as a separate component of

the sales transaction for which they are granted (multiple-element arrangement). The fair value of the consideration

received in the sale must be allocated between the award credit and the other elements of the sales transaction.

The amount allocated to the award credit is determined on the basis of its fair value. This amount is deducted from

revenues and deferred until the award credit is redeemed.

Operating expenses are recognised in the income statement upon delivery of the service or at the time they are

incurred.

Interest income is recognised rateably using the effective rate of interest on a financial asset and presented under

financial income.

Dividends are recognised on the date at which the Group’s right to receive payment is established.

Income taxes

Income taxes include current taxes and changes in deferred taxes.

Current income taxes are calculated on the basis of the taxable income in the individual country and local tax

regulations. Current taxes for the year also include adjustments for any payments or repayments of taxes due in

respect of past years.

077

Deferred taxes are accounted for using the balance sheet liability method, under which differences between the

carrying amount of an asset or liability in the consolidated balance sheet and the tax base of that asset or liability

are deferred if they will reverse over time (temporary differences). Deferred taxes are not recognised for goodwill

arising from business acquisitions.

The recognition and measurement of deferred tax assets are based on assessments by management. Deferred tax

assets are recognised for all deductible temporary differences, unused tax loss carryforwards and unused tax cred-

its to the extent that it is probable that there will be sufficient taxable income for the relevant tax authority and in

the relevant tax type in future periods against which the deductible temporary differences and unused tax loss

carryforwards and tax credits can be utilised.

The relevant individual tax rate expected at the time of the reversal of the difference or utilisation of the loss is

applied. In doing so, measurement is based on the tax rates (and tax regulations) that have been enacted or

announced at the balance sheet date.

Deferred tax assets and deferred tax liabilities are not discounted and are presented in the balance sheet as non-

current assets or liabilities. They are offset if the Group has a legally enforceable right of set-off and the tax assets

and tax liabilities relate to income taxes levied on the same taxable entity by the same taxation authority.

The carrying amount of recognised deferred tax assets is reviewed at each balance sheet date and reduced to the

extent that it is no longer probable that sufficient taxable profit will be available against which the deferred tax

asset can be at least partly utilised. Unrecognised deferred tax assets are reviewed at each balance sheet date and

recognised to the extent that it has become probable that future taxable profit will enable the benefit of the

deferred tax asset to be realised.

Deferred taxes recognised for items that are taken directly to equity are also recognised directly in equity.

Significant judgements, estimates and assumptions

Preparation of the consolidated financial statements requires management to make judgements, estimates and

assumptions that affect the amounts of income, expenses, assets and liabilities reported at the end of the period

under review and the related disclosure of contingent liabilities. Management takes into account all information

currently available when exercising judgement and making assumptions and estimates. However, due to the uncer-

tainty related to such assumptions and estimates, actual results could lead to significant adjustments to the carrying

amounts of the assets and liabilities concerned in future periods. Changes are recognised in the income statement

at the date on which better information comes to light. The main judgements, estimates and assumptions made

by management are explained in the following.

The identification of indications of possible impairment, estimates of future cash flows and the determination of

the fair values of the assets are significantly influenced by management’s estimates with respect to the identifica-

tion and assessment of indications of impairment, expected cash flows, discount rates, individual useful lives and

residual values.


The recoverable amount of a cash-generating unit is determined using the discounted cash flow method. The

forecast of expected cash flows necessary for this purpose is dependent on estimates by management with respect

to the development of market shares, forecasts for individual locations and investments, among other factors. For

further information, please refer to note 1 “Intangible assets”.

The pension obligations under defined benefit plans are calculated using actuarial models based on assumptions

with respect to the rate of interest, salary trend, life expectancy as well as the expected return on plan assets.

Defined benefit obligations are extremely sensitive to changes in these assumptions due to the complexity of mea-

surement, the underlying assumptions and their long-term nature. All assumptions are reviewed at each balance

sheet date. Further details on the parameters used in measuring defined benefit plans can be found in note 12

“Provisions for pensions and other post-employment benefits”. Pension provisions amounting to € 554 million (pre-

vious year: € 539 million) were reported as at 31 December 2013.

The recognition and measurement of provisions and contingent liabilities are largely dependent on estimates made

by management, since the measurement of a possible payment obligation and the assessment of the likelihood that

a liability will arise are based on an estimate of the particular situation by management. Provisions are uncertain

obligations that are recognised in the amount of the best estimate. Since these estimates are linked to uncertain

forecasts, actual amounts may differ from the estimate and therefore from the amount of the provision. For further

information, please refer to note 14 “Current and other non-current provisions”. Other non-current provisions

(€ 107 million; previous year: € 113 million), other current provisions (€ 653 million; previous year: € 806 million) and

contingent liabilities (€ 22 million; previous year: € 2 million) were reported as at 31 December 2013.

The measurement of tax provisions and provisions for antitrust, litigation and rental risks is also dependent on

estimates to a considerable extent. In assessing the risk, the Group makes use of the technical knowledge of inter-

nal specialist departments and the services of external experts such as tax and legal advisers.

Deferred tax assets are recognised for all unused tax loss carryforwards to the extent that it is probable that there

will be sufficient taxable income for them, thus allowing the loss carryforwards to actually be used. Determining

the amount of deferred tax assets that can be recognised requires management to make sig-nificant judgements

with regard to the expected timing and amount of the future taxable income and future tax planning strategies.

The Group has tax loss carryforwards and unused tax credits for which no deferred tax assets were recognised in

the amount of € 265 million (previous year: € 286 million). These are held by subsidiaries with a history of losses.

The subsidiary in question has neither taxable temporary differences nor tax planning oppor tunities that could lead

to the recognition of deferred tax assets in some cases. For further details, please refer to note 35 “Income taxes”.

079

Summary of selected measurement methods

Balance sheet item Measurement method

ASSETS

Goodwill Lower of cost and recoverable amount

Other intangible assets

Indefinite-lived Lower of cost and recoverable amount

Finite-lived (Amortised) cost

Property, plant and equipment (Amortised) cost

Financial assets

Loans and receivables (Amortised) cost

Held to maturity (Amortised) cost

Available for sale At fair value in other comprehensive income

At fair value through profit or loss At fair value through profit or loss

Inventories Lower of cost and net realisable value

Trade receivables (Amortised) cost

Cash and cash equivalents Nominal value

Non-current assets and disposal groups held for sale Lower of (amortised) cost and net realisable value

EquITy AND LIABILITIES

Provisions

Provisions for pensions and other post-employment benefits

Projected unit credit method

Other provisions Settlement value (with the highest probability)

Financial liabilities

Bond payable At fair value through profit or loss

Other financial liabilities (Amortised) cost

Trade payables (Amortised) cost

Other liabilities Settlement value


CONSOLIDATED BALANCE SHEET DISCLOSURES

(1) Intangible assets

in € million

Patents, trade-

marks, licences

and similar

Indefinite-lived

trademarks Goodwill

Payments on

account Total

historical cost Balance at 1 January 2012 461 3,616 1,943 3 6,023

Currency translation differences 1 – – 1 – –

Change to the consolidated Group/acquisition 7 – 30 – 37

Additions 38 – – 12 50

Disposals – 7 – – – – 7

Reclassifications – 10 – 12 – 1 1

Balance at 31 December 2012 490 3,616 1,984 14 6,104

Currency translation differences – 5 – – 10 – – 15

Additions 25 – – 8 33

Disposals – 26 – – – – 26

Reclassifications 13 – – – 11 2

Balance at 31 December 2013 497 3,616 1,974 11 6,098

Amortisation Balance at 1 January 2012 405 206 156 – 767

Currency translation differences 1 – – 1 – –

Reversals of impairment losses – – 5 – – – 5

Amortisation 19 – – – 19

Impairment losses – 6 15 – 21

Disposals – 6 – – – – 6

Reclassifications – 12 – 12 – –

Balance at 31 December 2012 407 207 182 – 796

Currency translation differences – 3 – – 6 – – 9

Reversals of impairment losses – – 24 – – – 24

Amortisation 26 – – – 26

Disposals – 26 – – – – 26

Balance at 31 December 2013 404 183 176 – 763

Carrying amount at 31 December 2013 93 3,433 1,798 11 5,335

Carrying amount at 31 December 2012 83 3,409 1,802 14 5,308

081

The carrying amounts of intangible assets increased by € 27 million compared with the previous year to € 5,335

million (previous year: € 5,308 million). The increase is attributable among other things to the reversal of impair-

ment losses on indefinite-lived trademarks.

The carrying amount of the indefinite-lived trademarks includes trademarks that were identified during the initial

consolidation of Beiersdorf AG and the Chinese hair care brands acquired with the purchase of the shares of

Beiersdorf Hair Care China.

The trademarks identified in the Holding company segment during the initial consolidation of Beiersdorf AG were

recognised at their fair value at the acquisition date of € 3,500 million. As no end to the economic life of the

recognised Beiersdorf AG trademarks can be predicted, these continue to be classified as indefinite-lived intangible

assets. The carrying amount of these trademarks was € 3,378 million at the balance sheet date (previous year:

€ 3,361 million).

As in the previous year, the relief from royalty method was used in testing these indefinite-lived Beiersdorf trade-

marks for impairment and the reversal of impairment losses. As at 31 December 2013, the following significant

valuation parameters were used to calculate the net realisable value, based on the revenues per brand derived from

the business plans:

The cost savings for the various brands were estimated to be licence fees of 3.5 % to 6.8 % (previous year: 3.5 %

to 6.8 %) of revenues, based on typical market licence fees for comparable assets.

The discount rate was determined using the WACC (weighted average cost of capital) method as the

weighted average of the cost of equity and the cost of debt. The after-tax rate used to discount the cash flows was

6.3 % (previous year: 6.4 %). The growth rate beyond the planning horizon was between 0 % and 1.8 % (previous

year: 0 % to 1.8 %).

The impairment test as at 31 December 2013 identified reversals of impairment losses charged in previous years

of € 17 million (previous year: € 4 million) that relate to Beiersdorf’s trademarks. No impairment losses had to be

charged in the financial year (previous year: € 6 million). The reversals of impairment losses were recognised under

other operating income and are attributable to the Holding segment and the Germany region. If the actual busi-

ness performance of the brands included is lower or higher than the assumptions used in the calculation, it may be

necessary to charge impairment losses or reversals of impairment losses on Beiersdorf’s trademarks in the future.

The reversals of impairment losses relating to the Beiersdorf trademarks are mainly due to the year-on-year increase

in forecast revenues.

In the Beiersdorf segment, the indefinite-lived intangible assets include the Chinese hair care brands that were

acquired when the shares of the Beiersdorf Hair Care China Group were purchased. These trademarks have been

recognised with an indefinite useful life since it is planned to continue using them for an unlimited period.


The annual impairment test resulted in reversals of impairment losses of € 7 million (previous year: € 1 million) and

led to an adjustment of the carrying amount to € 55 million (previous year: € 48 million). No impairment losses had

to be charged, as in the previous year. Impairment testing for the Beiersdorf Hair Care trademarks uses the relief

from royalty method on the basis of the net realisable value. The calculation is based on an after-tax discount rate

of 9.6 % (previous year: 9.7 %) and a growth rate beyond the planning horizon of 2.0 % (previous year: 2.0 %), as

well as licence fees of 2.5 % (previous year: 2.5 %). The planning horizon was set at nine years because this is

a growth market.

If the actual performance of the Chinese hair care business is lower or higher than outlined above, it may be neces-

sary to charge impairment losses or reversals of impairment losses on Beiersdorf Hair Care China’s trademarks in

the future.

Goodwill in the Holding segment consists mainly of the goodwill in the amount of € 1,735 million arising on initial

consolidation of Beiersdorf AG. For the purposes of impairment testing, the Beiersdorf Group was defined as a

cash-generating unit forming the basis of the impairment test, as the goodwill was allocated to the Beiersdorf

Group when the equity interest was acquired and is monitored at that level by maxingvest ag.

As at 31 December 2013, the value-in-use calculation for the impairment test performed on the goodwill of the

Beiersdorf Group was based on the following significant parameters and assumptions:

Value in use is calculated using cash flow projections that are based on the financial plans approved by management

for financial years 2014 to 2016. Cash flows occurring after the detailed three-year planning period are projected

using an annual growth rate of 1.8 % (previous year: 1.8 %).

The pre-tax rate used to discount the cash flows is 8.6 % (previous year: 8.5 %) and was determined using the

WACC method as the weighted average of the cost of equity and the cost of debt.

As in the previous year, the impairment test performed in financial year 2013 did not identify any impairment in

respect of the goodwill resulting from the acquisition of the shares of Beiersdorf AG. Planning for the cash-

generating units is based on assumptions regarding the significant estimation parameters. The latter included gross

margins, discount rates, commodity price trends, market share and growth rates.

The decrease in goodwill in the Beiersdorf segment from € 66 million to € 63 million is exclusively due to currency

translation differences. This goodwill mainly includes goodwill for NIVEA Beiersdorf Turkey, Turkey, and Beiersdorf

AG, Switzerland.

083

The cash-generating units for the items of goodwill mentioned above correspond to the respective legal units.

The recoverable amounts of the cash-generating units were determined using cash flow projections based on the

calculation of the value in use for Beiersdorf AG, Switzerland, and the fair value less costs to sell of NIVEA Beiersdorf

Turkey, Turkey. Costs to sell were assumed to be 1 % of the fair value (previous year: 1 %). The estimated future

cash flows used for impairment testing are based on the financial planning, with a planning horizon of three years

being used in the case of Beiersdorf AG, Switzerland, and nine years for NIVEA Beiersdorf Turkey, Turkey. Cash

flows outside the planning period are extrapo lated using individual growth rates, taking relevant market informa-

tion into account. The growth rate outside the planning horizon (growth discount) for Beiersdorf AG, Switzerland,

was 1.0 % (previous year: 1.0 %). The weighted average discount rate before tax used to discount the estimated

cash flows was 6.6 % (previous year: 4.9 %). In the case of NIVEA Beiersdorf Turkey, Turkey, a growth rate of 2.0 %

(previous year: 2.0 %) and a discount rate after tax of 13.7 % (previous year: 13.4 %) were assumed.

Planning for the cash-generating units is based on assumptions regarding the significant estimation para meters.

The latter included gross margins, discount rates, commodity price trends, market share and growth rates.

The impairment tests performed on the goodwill allocated to Beiersdorf AG, Switzerland, and NIVEA Beiersdorf

Turkey, Turkey, did not reveal any evidence of impairments. It is assumed that, although changes in these para-

meters are possible in principle in line with reasonable estimates, the recoverable amount of goodwill will exceed

the carrying amount.

As in the previous year, no internally generated intangible assets were capitalised in the year under review

as the capitalisation requirements under IAS 38 – “Intangible Assets” were not met by the development pro jects.

Depending on the use of the assets concerned, amortisation of intangible assets is included in the income state-

ment in the cost of sales, marketing and selling expenses, research and development costs, general administrative

expenses and other operating expenses.


(2) property, plant and equipment

in € millionLand and

buildings

Technical

equipment and

machinery

Operating and

office equipment

Payments on

account and

construction in

progress Total

historical cost Balance at 1 January 2012 938 931 960 45 2,874

Currency translation differences 3 1 4 – 8

Additions 55 39 95 73 262

Disposals 1) – 14 – 54 – 91 – 1 – 160

Reclassifications – 6 21 11 – 39 – 13

Balance at 31 December 2012 976 938 979 78 2,971

Currency translation differences – 11 – 10 – 17 – 2 – 40

Additions 11 33 93 141 278

Disposals – 32 – 41 – 113 – 5 – 191

Reclassifications 3 25 11 – 41 – 2


Depreciation Balance at 1 January 2012 439 677 714 – 1,830

Currency translation differences 2 – 1 2 – 3

Depreciation 26 67 85 3 181

Impairment losses 10 – – – 10

Disposals 2) – 10 – 44 – 83 – – 137

Reclassifications – 10 – 2 – – – 12


Currency translation differences – 5 – 6 – 11 – – 22

Depreciation 26 48 79 – 2 151

Impairment losses 13 – – – 13

Disposals – 29 – 39 – 107 – – 175


Carrying amount at 31 December 2013 485 245 274 170 1,174

Carrying amount at 31 December 2012 519 241 261 75 1,096

085

Property, plant and equipment increased by € 78 million year-on-year to € 1,174 million (previous year: € 1,096 mil-

lion). Investments in property, plant and equipment totalled € 278 million (previous year: € 262 million), attributable

to capital expenditures. Depreciation amounted to € 151 million (previous year: € 181 million) and there were

impairment losses of € 13 million (previous year: € 10 million) in financial year 2013. No impairment losses were

reversed in the year under review.

The impairment losses are attributable to the following factors:

During initial consolidation of Beiersdorf AG, the property, plant and equipment from the Beiersdorf subgroup was

recognised at fair value. An impairment loss of € 13 million was identified and recognised in the Holding division in

the financial year.

(3) Non-current financial assets


Loans and receivables 12 141

Held-to-maturity financial investments (securities) 794 680

Available-for-sale financial assets 26 28

Financial assets at fair value through profit or loss – 34

832 883

Held-to-maturity financial investments relate to securities carried at amortised cost using the effective interest

method.

The available-for-sale financial assets relate to unlisted equity instruments and investments in funds. There was no

price quoted on an active market for the unlisted equity instruments, nor could their fair value be reliably deter-

mined. These assets are non-marketable equity investments in service or industrial enterprises. They are therefore

recognised at their cost of € 17 million (previous year: € 17 million), after adjustment for impairment losses of

€ 4 million (previous year: € 4 million).

Non-current financial assets did not include any financial instruments that are past due and not impaired at the

balance sheet date.


(4) Inventories


Raw materials and supplies 214 237

Work in progress 50 45

Finished goods, merchandise 952 965

Payments on account 10 14

1,226 1,261

Of the inventories recognised as at 31 December 2013, inventories amounting to € 346 million (previous year:

€ 333 million) were carried below cost at their expected net realisable value. Valuation allowances on inventories

amounted to € 107 million at the balance sheet date (previous year: € 126 million).

(5) Trade receivables


Trade receivables (before specific valuation allowances) 1,334 1,298

Specific valuation allowances – 26 – 20

1,308 1,278

The trade receivables represent the full amount of financial instruments in the “loans and receivables” meas urement

category.

The changes in the allowance account are as follows:


Balance as at 1 January 20 24

Additions 12 9

Reversals – 6 – 10

Utilisation – 1 – 3

Currency translation differences 1 –

Balance as at 31 December 26 20

087

The age structure of trade receivables that are past due and not impaired is as follows:

in € millionCarrying amount

of which impaired

of which neither

impaired nor past due

of which not impaired and past due

< 30 days

> 30 and

< 90 days

> 90 and

< 180 days

> 180 and

< 360 days > 360 days

31 December 2013

Trade receivables 1,308 17 1,101 163 10 5 12 –

31 December 2012

Trade receivables 1,278 85 1,029 151 12 1 – –

In terms of receivables that are neither past due nor impaired as at the balance sheet date, there is no indication

that the debtors will default on their obligations. The other outstanding receivables are monitored continuously.

The risk of default is accounted for via specific and collective valuation allowances. The maximum default risk is

represented by the carrying amount of the financial assets recognised in the balance sheet. The default risk is

partly mitigated by insurance as at the balance sheet date.

(6) Other current financial assets



Financial assets at fair value through profit or loss 4 1

Derivative financial instruments included in hedging relationships 13 11

351 153

Financial assets at fair value through profit or loss relate to derivatives not included in hedging relationships. Other

current financial assets did not include any financial instruments that are past due and not impaired at the balance

sheet date.

Loans and receivables include receivables in the amount of € 49 million (previous year: € 49 million) which have

been completely written off.


(7) Other current assets


Other tax assets 86 85

Payments on account 1) 61 52

Miscellaneous assets 7 7

154 144

(8) Securities


Available-for-sale financial assets 1,264 1,035

Held-to-maturity investments 464 842


1,741 1,893

The maxingvest Group holds a total of € 1,741 million in government and corporate bonds, civil bonds, near-

money-market retail funds and commercial paper. Government and corporate bonds and commercial paper are

assigned to the “held-to-maturity investments”, “available-for-sale financial assets” and “loans and receivables”

categories. The near-money-market retail funds are assigned to the “available-for-sale financial assets” category.

(9) Cash and cash equivalents


Cash 1,031 891

Cash equivalents 243 243

Cash and cash equivalents reported in the balance sheet 1,274 1,134

Current liabilities to banks – 38 – 20

Overnight money borrowed from/invested in investees – 7 – 6

Cash and cash equivalents reported in the cash flow statement 1,229 1,108

Cash comprises cash at banks, cash on hand and cheques, and is assigned to the “loans and receivables” measure-

ment category. Cash equivalents are short-term liquid investments, such as overnight funds or short-term invest-

ments in money market funds, that can be converted into cash at any time and that are exposed to no more than

insignificant fluctuations in value. They are also assigned to the “loans and receivables” measurement category.



089

(10) Equity

Equity is composed of paid-in capital (subscribed capital and capital reserves), retained earnings, other components

of equity and non-controlling interests.

The subscribed capital amounts to € 125 million. It is composed of 3,660,001 (previous year: 3,960,001) no-par

value shares.

In the reporting period, the Company retired the 300,000 own shares it had acquired in the previous year on the

basis of an authorisation by the Annual General Meeting on 13 December 2012, with effect from 15 November

2013. The retirement has no effect on the share capital; rather, it increases the proportionate interest of the

remaining shares in the share capital in accordance with section 8 (3) of the Aktiengesetz (AktG – German Stock

Corporation Act).

Retained earnings comprise the net profit for the financial year, the revaluation reserve and undistributed profits

generated in prior periods by companies included in the consolidated financial statements. In addition, this item

contains the actuarial gains and losses on remeasurements of defined benefit pension plans. The differences

between national GAAP and IFRS recognised at the date of transition to the IFRS in accordance with IFRS 1 are

reported in retained earnings.

See the statement of changes in equity for the composition of and changes in equity in the year under review and

the previous year.

Other components of equity include foreign currency translation adjustments and the equity accounts for the fair

value measurement of financial instruments. The foreign currency translation adjustments result from the trans-

lation of financial statements of consolidated subsidiaries prepared in foreign currencies.

The equity accounts for the fair value measurement of financial instruments contain the changes in the fair values

of available-for-sale financial instruments and of derivative financial instruments designated as hedging instruments

that are recognised directly in equity after deduction of deferred taxes.

The non-controlling interests contain the proportionate equity of subsidiaries in which third parties hold equity

interests.

(11) Disclosures on capital management

The maxingvest Group’s capital management goals are derived from its financial strategy. They include ensuring

maxingvest ag’s liquidity and its ability to pay a dividend. As a matter of principle, the Group pursues the goal of

safeguarding its capital base for the long term and generating a suitable return on capital employed. The equity

ratio as at 31 December 2013 was 60 % (previous year: 57 % 1)) and the return on equity was 9 % (previous year:

8 %). In addition, operational management at overall Group level uses EBIT and the EBIT margin on net capital

employed. The EBIT margin on average net capital employed in the maxingvest Group was 15.2 % in the reporting

period (previous year: 13.3 %).




The dividend distributed by maxingvest ag in financial year 2013 was € 48 million (previous year: € 48 million). The

maxingvest Group also distributed € 94 million (previous year: € 94 million) to non-controlling interests. The free

cash flow not used for dividend payments was primarily used to further increase securities holdings.

(12) provisions for pensions and other post-employment benefits 1)

The provisions for pensions and other post-employment benefits are composed of the following items:


Retirement benefit obligations 549 534

Termination benefits 5 5

554 539

The provisions for pensions and other post-employment benefits for financial year 2012 reported in the consoli-

dated balance sheet in the reporting period increased by € 375 million. Additional information on this adjustment

can be found in the section entitled “Changes in accounting policies”.

Occupational pension plans in the maxingvest Group consist of both defined contribution and defined benefit

plans. With the exception of net interest income, the defined benefit and defined contribution expenses are

included in the costs of the respective functions. Unwinding of the discount on the net pension benefit that vested

in previous years is reported in the financial result.

The defined contribution expense also contains contributions to statutory or state pension insurance funds. There

was no material income or expense from the termination of pension plans or the curtailment and transfer of

pension benefits in the year under review.



091

The total expense for defined benefit and defined contribution obligations is composed of the following items:


Germany Other countries Total Germany Other countries Total

Current service cost 30 9 39 20 9 29

Unrecognised past service cost – – – – – 1 – 1

Defined benefit expense 1) 30 9 39 20 8 28

Net interest income for defined benefit plans 16 1 17 14 – 14

Total expenses for defined benefit plans 46 10 56 34 8 42

Defined contribution expense 1) 52 26 78 53 27 80

pension benefit expense 98 36 134 87 35 122

1) included in EBIT

The present value of the defined benefit obligations and the balance sheet provisions were attributable to

Germany and the other countries as follows as at the reporting date:

in € million 31 Dec. 2013 31 Dec. 2012


Present value of defined benefit obligations 1,188 245 1,433 1,137 249 1,386

Fair value of plan assets – 668 – 222 – 890 – 647 – 206 – 853

Net obligation 520 23 543 490 43 533

Amounts not recognised due to asset ceiling 1 1 2 – – –

Other recognised amounts – 9 9 – 6 6

provisions for retirement benefit obligations 521 33 554 490 49 539


A majority of the defined benefit obligations within the maxingvest Group relate to employees in Germany. These

are primarily obligations in relation to retirement pensions, disability pensions, and surviving dependents’ pensions

granted as a supplement to the statutory pension insurance. Pension commitments in Germany largely consist of

direct and indirect commitments. The benefits depend on the employees’ length of service and their average salary

over the three years immediately preceding the date on which the pension becomes payable.

Defined benefit obligations are funded exclusively by employer payments. There is no minimum funding require-

ment in Germany. However, the maxingvest Group companies have transferred plan assets to a separate entity and

the benefit plans are additionally protected against the consequences of insolvency in accordance with the Gesetz

zur Verbesserung der betrieblichen Altersversorgung (BetrAVG – German Occupational Pensions Improvement Act).

Annual contributions are made to the Pensions-Sicherungs-Verein (German Pension Protection Fund) for this.

The expenses for defined benefit plans and the present value of pension commitments are determined on the basis

of actuarial calculations.

In Germany, provisions are calculated on the basis of the 2005 mortality tables published by Dr. Klaus Heubeck;

internationally, they are calculated on the basis of the locally recognised mortality tables. The discount rate for

Germany of 3.50 % (previous year: 3.50 %) was determined at the year-end on the basis of the information

available then. During the period under review, there was no extraordinary income and expense as a result of the

settlement of benefit plans or the curtailment and transfer of benefits.

Measurement is based on the following actuarial assumptions:

2013 2012

Germany Other countries Germany Other countries

Discount rates 3.50 % 0.11 – 9.23 % 3.50 % 0.75 – 6.00 %

Projected wage and salary growth 2.00 – 3.50 % 0.05 – 8.25 % 2.50 – 3.50 % 1.50 – 8.00 %

Projected pension growth 1.50 – 3.00 % 0.00 – 5.00 % 1.50 – 2.00 % 0.10 – 3.50 %

Projected staff turnover 2.00 – 10.00 % 0.00 – 25.00 % 2.00 – 10.00 % 0.00 – 13.30 %

093

The present value of the defined benefit obligations is calculated as follows:



present value of defined benefit obligations, opening balance 1,137 249 1,386 864 236 1,100

Current service cost 30 9 39 20 8 28

Interest expense 39 8 47 44 9 53

Actuarial gains and losses 20 – 11 9 249 35 284

of which experience adjustments – 1 – 1 – 2 – 1 – – 1

of which due to changes in financial assumptions 21 – 10 11 250 35 285

Contributions for plan participants 5 2 7 4 3 7

Pension benefits paid – 45 – 8 – 53 – 44 – 14 – 58

Currency translation differences – – 4 – 4 – 1 1

Other changes 2 – 2 – – 29 – 29

present value of defined benefit obligations, closing balance 1,188 245 1,433 1,137 249 1,386

The funded status of the present value of the defined benefit obligations is as follows:



Partly or wholly funded defined benefit obligations 1,019 227 1,246 979 222 1,201

Unfunded defined benefit obligations 169 18 187 158 27 185

present value of defined benefit obligations 1,188 245 1,433 1,137 249 1,386


The fair value of the plan assets changed as follows:



Fair value of plan assets, opening balance 647 206 853 599 215 814

Expected return on plan assets 23 6 29 30 9 39

Actuarial gains and losses – 7 8 1 21 7 28

Actual return on plan assets 16 14 30 51 16 67

Employer contributions 6 9 15 2 9 11

Contributions for plan participants 3 2 5 3 2 5

Pension benefits paid – 8 – 6 – 14 – 8 – 11 – 19

Currency translation differences – – 4 – 4 – 1 1

Other changes 4 1 5 – – 26 – 26

Fair value of plan assets, closing balance 668 222 890 647 206 853

Additions of € 12 million (previous year: € 9 million) are expected to be made to plan assets for 2014.

The fair value of the plan assets is made up of the following asset classes:



Equity instruments 158 67 225 148 72 220

Debt instruments 368 119 487 462 108 570

Real estate 41 16 57 10 12 22

Cash and cash equivalents 94 6 100 26 8 34

Other 7 14 21 1 6 7

Fair value of plan assets 668 222 890 647 206 853

The plan assets serve exclusively to meet the benefit obligations. The funding provided for these benefit obligations

represents a provision for future cash outflows. The overarching investment policy and investment strategy are

based on the goal of generating a return on plan assets in the medium term which, taken together with the con-

tributions, is sufficient to meet the pension obligations. The plan assets are invested in a variety of different asset

classes so as to avoid risk clusters.

095

The following overview of the duration and maturity analysis provides a breakdown of the weighted average dura-

tion of the present value of the defined benefit obligations and maturity of expected pension payments:

31 Dec. 2013

Germany Other countries Group

Duration of the present value of the pension obligations (in years) 16 17 16

Maturity analysis of the expected pension payments (in € million)

up to 1 year 48 8 56

more than 1 and up to 5 years 202 30 232

more than 5 and up to 10 years 277 50 327

The following sensitivity analysis shows the effect of individual changes in assumptions on the present value of the

defined benefit obligations:

in € million 31 Dec. 2013

Germany Other countries Group

Discount rate

+ 0.50 % – 87 – 18 – 105

– 0.50 % 99 20 119

Projected wage and salary growth

+ 0.25 % 5 2 7

– 0.25 % – 5 – 2 – 7

Projected pension growth

+ 0.25 % 28 4 32

– 0.25 % – 26 – 3 – 29

Projected staff turnover

+ 0.25 % – 1 – – 1

– 0.25 % 1 – 1

Life expectancy

Increase of one year 41 4 45

Decrease of one year – 40 – 4 – 44

The sensitivity analysis is based on realistic potential changes as at the end of the reporting period. It was per-

formed using a methodology that extrapolates the effect of realistic changes in the key assumptions at the end of

the reporting period on the defined benefit obligation. Each change in the key actuarial assumptions was analysed

separately. No interdependencies were taken into account.


(13) Non-current financial liabilities


Bond payable – 658

Liabilities to banks 564 564

Other financial liabilities 17 22

581 1,244

maxingvest ag’s euro debut bond matures on 13 October 2014 and is reported under current financial liabilities as

at 31 December 2013. Please refer to the explanation given in note (16).

Liabilities to banks have a remaining term of between one and five years and are allocated to the “other financial

liabilities” measurement category.

Financial instruments in the “other financial liabilities” category amounting to € 16 million have remaining maturities

of between one and five years and financial instruments amounting to € 1 million have remaining maturities of

more than five years.

(14) Current and other non-current provisions

in € million Employee benefits

Marketing and

selling expenses

Restructuring

measures Miscellaneous Total

Balance at 1 January 2013 230 175 40 474 919

thereof non-current 53 1 – 59 113

Currency translation differences – 4 – 10 – – 13 – 27

Additions 151 162 10 147 470

Utilisation – 134 – 118 – 28 – 180 – 460

Reversal – 15 – 14 – 5 – 108 – 142

Balance at 31 December 2013 228 195 17 320 760

thereof non-current 54 2 – 51 107

Employee benefits relate primarily to annual bonuses, overtime pay, vacation pay, pre-retirement part-time work,

severance agreements and anniversary obligations.

Provisions for marketing and selling expenses relate in particular to cooperative advertising allowances, customer

bonuses and rebates.

The reversal of other provisions includes among other things provisions in connection with previous equity invest-

ments that are no longer needed.

097

Other provisions relate in particular to liabilities to former Group employees, uncertain liabilities and litigation risks.

Adequate provisions were recognised for the remaining risks from pending antitrust cases.

Other non-current provisions are due within one to five years of the balance sheet date.

(15) Trade payables

Trade payables were assigned as financial instruments entirely to the “other financial liabilities” measurement

category.

(16) Other current financial liabilities


Liabilities to banks 42 24

Other financial liabilities 68 65

Financial liabilities at fair value through profit or loss 634 10

Derivative financial instruments included in hedging relationships 11 11

755 110

With the exception of financial liabilities at fair value through profit or loss and derivatives included in hedging

relationships, current financial liabilities are assigned to the “other financial liabilities” measurement category.

Financial liabilities at fair value through profit or loss relate to the euro debut bond and derivatives not included in

hedging relationships.

In October 2004, maxingvest ag launched a euro debut bond with an issue volume of € 700 million at a quoted

price of € 694 million. The bond bears interest of 4.5 % and has a term until 13 October 2014. Own bonds with a

principal amount of € 10 million were repurchased in financial year 2013 (previous year: € 15 million).

As at 31 December 2013, the fair value of this bond, determined on the basis of its quoted price, was € 630 million

(previous year: € 658 million), € 28 million lower than at the prior-year reporting date. In accordance with the

relevant calculation methodology in IFRS 7 and after adjustment for the bond buyback in the amount of € 10 mil-

lion, € – 16 million of the change in fair value is attributable to changes in market interest rate conditions and

€ – 2 million to changes in credit risk. The bond is assigned to the “financial liabilities at fair value through profit or

loss” category.


(17) Other current liabilities

Other current liabilities are composed of the following items:


Other tax liabilities 128 133

Social security liabilities 13 14

Miscellaneous liabilities 30 39

171 186

(18) Maturities of financial liabilities

The analysis of the contractual maturities of financial liabilities is shown in the following tables. This analysis dis-

closes the contractual undiscounted cash flows.

2013


Maturity

up to 1 year

Maturity

over 1 year and

up to 5 years

Maturity

over 5 years

Trade payables 1,233 1,233 – –

Euro debut bond 639 639 – –

Liabilities to banks 615 47 568 –

Other financial liabilities 78 60 17 1

Derivatives not included in a hedging relationship 111 110 1 –

Derivatives included in a hedging relationship 884 859 25 –

3,560 2,948 611 1

The cash outflows from derivatives included in hedging relationships are offset by nearly matching cash inflows

from these hedges.

2012


Maturity

up to 1 year

Maturity

over 1 year and

up to 5 years

Maturity

over 5 years

Trade payables 1,297 1,297 – –

Euro debut bond 678 28 650 –

Liabilities to banks 602 29 573 –

Other financial liabilities 87 65 21 1

Derivatives not included in a hedging relationship 167 164 3 –

Derivatives included in a hedging relationship 1,008 984 24 –

3,839 2,567 1,271 1

The cash outflows from derivatives included in hedging relationships were offset by nearly matching cash inflows

from these hedges.

099

(19) Financial risk management and financial instruments

principles of risk management

Owing to the international orientation of its operating activities, the maxingvest Group is exposed to currency risk,

interest rate risk and commodity risk, as well as general liquidity and credit risk. The corporate policy objective is

to minimise the potential negative effects on its financial position through systematic financial management. Risk

management is conducted by the Group Treasury departments on the basis of approved financial guidelines.

In order to hedge against market risk (and material financial transactions necessary for the Company), the Group

specifically deploys derivative financial instruments, depending on the estimated risk. The majority of derivative

financial instruments are used as hedging instruments. The maxingvest Group measures and hedges financial risk

in close coordination with the Group’s operating units. The transactions are conducted exclusively in marketable

instruments.

In order to present market risk, IFRS 7 requires sensitivity analyses which reveal the effects of hypothetical changes

in relevant risk variables on profit or loss and equity. These are essentially currency risk, interest rate risk and market

risk for the maxingvest Group. The effects are determined by applying the changes in risk variables to the portfo-

lios of deployed financial instruments as at the balance sheet date. It is assumed that the portfolios as at the bal-

ance sheet date are representative for the entire year.

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of

changes in exchange rates.

Currency risk within the meaning of IFRS 7 arises through financial instruments that are denominated in a currency

other than the functional currency and are monetary in nature. These do not include the effect of exchange rate

differences resulting from the translation of financial statements into the Group currency. Relevant risk variables are

therefore basically all non-functional currencies in which the maxingvest Group holds financial instruments. Because

of the international orientation of the maxingvest Group with an em phasis on the eurozone, the euro serves as the

lead currency. Risks therefore arise in the Group from financing measures and operating activities when other

currencies fluctuate against the euro.

For this reason, risks from currencies that affect the Group’s cash flows are hedged. In contrast, currency risks that

do not affect the Group’s cash flows (that means risks resulting from the translation of assets and liabilities of

foreign business units into the Group reporting currency) are normally not hedged. In the case of cross-border

financing, all currency risks are hedged by the Group Treasury departments as a matter of principle. The maxingvest

Group is therefore not exposed to any material currency risk in its financing activities as at the balance sheet date.

For its operating activities, the maxingvest Group’s cash flows in non-functional currencies are hedged up to

36 months in advance through standard foreign exchange contracts. These transactions are centrally re corded,

measured and managed in the treasury management systems. As a result, the maxingvest Group is not exposed to

any significant currency risks in its operations as at the balance sheet date.


In the case of fair value hedges implemented to hedge currency risks, the changes in value of hedged and hedging

items caused by changes in the exchange rate offset each other in the income statement almost completely in the

same period. Thus, there is no resulting currency risk with regard to profit or loss or equity. Expenses of € 1 million

(previous year: income of € 4 million) was recognised in the income statement in the reporting period due to

remaining hedge ineffectiveness. The hedging instruments designated as fair value hedges had a fair value of

€ – 3 million (previous year: € – 3 million), a notional value of € 404 million (previous year: € 390 million) and a

remaining maturity of up to one year.

In order to hedge currency risk from highly probable future deliveries of goods and services, the maxingvest Group

also uses cash flow hedges. As a result, the maxingvest Group is exposed to currency risk from foreign exchange

contracts used as hedging instruments which meet the requirements for hedge accounting for hedges of expected

or forecasted cash flows. Exchange rate changes affect the hedging reserve in equity and the fair value of hedges.

The fair value of foreign exchange contracts was € 5 million (previous year: € 3 million) as at the reporting date,

while the notional value was € 481 million (previous year: € 618 million). € 456 million (previous year: € 594 million)

of this has remaining maturities of up to one year, € 25 million (previous year: € 24 million) has remaining maturities

of between one and five years; there are no remaining maturities of over five years (unchanged year-on-year). The

notional values reflect the sum of all buy and sell amounts of derivative financial transactions. None of the notion-

al values shown are offset.

If the euro had appreciated by 10 % against all currencies as at 31 December 2013, the hedging reserve in equity

and the fair values of the foreign exchange contracts would have been € 28 million higher (previous year: € 31 mil-

lion) and earnings would have been € 2 million lower (previous year: € 1 million lower). If the euro had depreciated

by 10 % against all currencies as at 31 December 2013, the hedging reserve in equity and the fair values of the

foreign exchange contracts would have been € 34 million lower (previous year: € 38 million lower) and earnings

would have been € 1 million higher (previous year: € 2 million lower).

In addition, currency risk remains in the Group from non-derivative monetary financial instruments not denomi-

nated in the functional Group currency and from foreign exchange contracts that are not hedged in accordance

with IAS 39. The fair value of the foreign exchange contracts was € – 4 million as at the reporting date (previous

year: € – 8 million), while the notional value was € 110 million (previous year: € 167 million). Of this figure, € 109

million (previous year: € 164 million) has a remaining maturity of up to one year and € 1 million (previous year:

€ 3 million) has remaining maturities of between one and five years.

If the euro had appreciated by 10 % against all currencies as at 31 December 2013, other financial income would

have been € 3 million lower (previous year: € 3 million lower). If the euro had depreciated by 10 % against all

currencies as at 31 December 2013, other financial income would have been € 3 million higher (previous year:

€ 4 million higher).

101

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument fluctuate because of

changes in the market interest rate. It affects, on the one hand, the amount of the Group’s future interest income

and expense and, on the other hand, the fair value of financial instruments.

The maxingvest Group is exposed as a matter of principle to interest rate risk from hypothetical changes in interest-

sensitive assets and liabilities measured at fair value and from interest-sensitive assets and liabilities with variable

interest rates measured at amortised cost. Changes in the market interest rate of primary financial instruments with

fixed interest rates only affect profit or loss if they are measured at fair value. Thus, all financial instruments with

fixed interest rates that are measured at amortised cost are not exposed to interest rate risk within the meaning of

IFRS 7. Changes in the market interest rate of interest rate derivatives (interest rate swaps) that are not included in

hedging relationships in accordance with IAS 39 affect other financial income (remeasurement gains or losses from

the adjustment of financial assets and liabilities to fair value before taxes) and are thus factored into profit-related

sensitivity analyses. Currency derivatives are not exposed to interest rate risk and therefore have no influence on

interest rate sensitivities.

The Euribor is the relevant key interest rate for the interest-sensitive assets and liabilities measured at fair value. If

the Euribor had been 100 basis points higher as at 31 December 2013, net financial income would have been

€ 4 million higher (previous year: € 6 million higher). If the Euribor had been 100 basis points lower as at 31 Decem-

ber 2013, net financial income would have been € 4 million lower (previous year: € 1 million higher). The hypo-

thetical effect on profit or loss of € 4 million or € – 4 million in each case is the result of potential effects from

interest rate swaps, as well as the euro debut bond.

Securities that were classified as “available-for-sale financial assets” are subject to interest rate risk in accord ance

with IFRS 7. If the interest rates as at 31 December 2013 had been 100 basis points higher (lower), the hedging

reserve in equity would have been € 7 million (previous year: € 9 million) lower (higher).

In addition, interest rate risk from cash investments with short maturities remains in the maxingvest Group.

If the interest rates as at 31 December 2013 had been 100 basis points higher (lower), net financial income would

have been € 10 million (previous year: € 8 million) higher (lower).

Other price risk

The maxingvest Group purchases raw coffee on international markets and is thus exposed to market risk.

To manage this risk from changes in quoted market prices or the fair value of raw coffee, the Group enters into

commodities futures contracts for its firm commitments.

The maxingvest Group also uses a small amount of options in raw coffee transactions that serve no hedging

purpose. The fair value of these options is calculated on the basis of option pricing models.

If the price level for raw coffee had been 20 % higher as at 31 December 2013, hypothetical profit would have been

€ 2 million (previous year: € 2 million) higher. If the price level for raw coffee had been 20 % lower as at 31 Decem-

ber 2013, hypothetical profit would have been € 3 million (previous year: € 3 million) lower.


The maxingvest Group is also exposed to an insignificant degree of price risk in the energy trading business from

volatility in the market prices of purchased positions and open energy positions to be purchased.

Credit risk

There is no substantial concentration of credit risk for the Group either from an individual counterparty or a group

of counterparties with similar characteristics. The maximum credit risk is reflected by the amount carried in the

balance sheet for each financial asset, including derivatives.

In the area of trade receivables, outstanding receivables are monitored continuously. The credit risk is taken into

account via specific and collective valuation allowances. A portion of this risk is covered by corresponding insurance

policies. Transactions with key accounts are subject to special monitoring of creditworthiness. A large portion of

the risk in these cases is assumed by third parties via performance guarantees.

The maximum credit risk equals the sum of trade receivables and other current assets less impairment losses on

these assets recognised as at the balance sheet date. Credit risk relating to trade receivables is partly covered by

insurance. The maximum default risk can be seen from the amount carried in the balance sheet for each financial

asset. The total carrying amount of the financial assets was € 5,506 million as at 31 December 2013 (previous year:

€ 5,341 million).

A default on derivative financial instruments can occur if counterparties do not meet some or all of their payment

obligations. To limit this risk, corresponding contracts are only entered into with selected banks and thus prime-

rated counterparties. Counterparty risk is monitored by reference to ratings and the liable capital of the counter-

parties. In addition, the creditworthiness of counterparties is analysed using methods that provide a current

indication for assessing a market participant’s credit quality (credit default swaps). These inputs are used to define

counterparty limits for each partner bank, which are regularly compared with the Group-wide investments

actually made. Additionally, internal settlement risk is minimised by the strict functional separation of areas of

responsibility.

Liquidity risk

Liquidity risk arises when an entity encounters difficulties in meeting its obligations under financial liabilities.

Owing to the large amount of securities, cash and cash equivalents as at the reporting date, the maxingvest Group

is not currently exposed to any liquidity risk. In order to ensure liquidity and the Group’s financial flexibility at all

times, liquidity reserves are also maintained in the form of credit lines.

103

(20) Additional disclosures on financial instruments

The following tables present the financial instruments recognised by the maxingvest Group as at 31 December

2013 and 31 December 2012 by measurement categories and classes.

in € million Carrying amount in accordance with IAS 39

Carrying

amount

31 Dec. 2013 Amortised cost

Fair value

recognised

directly in equity

Fair value

recognised in

profit or loss

Fair value

31 Dec. 2013

ASSETS

Loans and receivables 2,941 2,941 – – 2,941

Trade receivables 1,308 1,308 – – 1,308

Non-current financial assets 12 12 – – 12

Other current financial assets 334 334 – – 334

Securities 13 13 – – 13

Cash and cash equivalents 1,274 1,274 – – 1,274

Available-for-sale financial assets 1,290 13 1,277 – 1,290

Non-current financial assets 26 13 13 – 26

Securities 1,264 – 1,264 – 1,264

held-to-maturity investments 1,258 1,258 – – 1,260

Non-current financial assets (securities) 794 794 – – 796

Securities 464 464 – – 464

Financial assets at fair value through profit or loss 4 – – 4 4

Other current financial assets 4 – – 4 4

Derivative financial instruments included in a hedging relationship 13 – 10 3 13


Financial liabilities at fair value through profit or loss 634 – – 634 634

Other current financial liabilities 634 – – 634 634

Other financial liabilities 1,924 1,924 – – 1,925

Trade payables 1,233 1,233 – – 1,233

Non-current financial liabilities 581 581 – – 582

Other current financial liabilities 110 110 – – 110



in € million Carrying amount in accordance with IAS 39

Carrying

amount

31 Dec. 2012 Amortised cost

Fair value

recognised

directly in equity

Fair value

recognised in

profit or loss

Fair value

31 Dec. 2012

ASSETS

Loans and receivables 2,710 2,710 – – 2,710

Trade receivables 1,278 1,278 – – 1,278

Non-current financial assets 141 141 – – 141

Other current financial assets 141 141 – – 141

Securities 16 16 – – 16

Cash and cash equivalents 1,134 1,134 – – 1,134

Available-for-sale financial assets 1,063 13 1,050 – 1,063

Non-current financial assets 28 13 15 – 28

Securities 1,035 – 1,035 – 1,035

held-to-maturity investments 1,522 1,522 – – 1,527

Non-current financial assets (securities) 680 680 – – 684

Securities 842 842 – – 843

Financial assets at fair value through profit or loss 35 – – 35 35

Non-current financial assets 34 – – 34 34

Other current financial assets 1 – – 1 1



Financial liabilities at fair value through profit or loss 668 – – 668 668

Non-current financial liabilities 658 – – 658 658

Other current financial liabilities 10 – – 10 10

Other financial liabilities 1,972 1,972 – – 1,972

Trade payables 1,297 1,297 – – 1,297

Non-current financial liabilities 586 586 – – 586

Other current financial liabilities 89 89 – – 89


The contractual maturities for the financial instruments that are not measured at fair value are largely within twelve

months of the balance sheet date. Their carrying amounts as at the balance sheet date therefore correspond

approximately to fair value. Securities classified as “held to maturity” are an exception; these are assigned to fair

value hierarchy level 1.

105

The following hierarchy is used to determine and report the fair value of financial instruments:

Level 1: fair values that are determined using quoted prices in active markets.

Level 2: fair values that are determined using valuation techniques whose significant inputs are based on


Level 3: fair values that are determined using valuation techniques whose significant inputs are not based on


In the maxingvest Group, securities carried at fair value and the euro debut bond are allocated to fair value hierar-

chy level 1, and derivative financial instruments to hierarchy level 2. The equity investments in private equity funds

reported under other non-current financial assets are allocated to fair value hierarchy level 3.

The following overview shows the hierarchy levels used to categorise financial instruments that are measured at

fair value on a recurring basis.

in € million Fair value hierarchy in accordance with IFRS 13

Level 1 Level 2 Level 3

Fair value

31 Dec. 2013

ASSETS

Available-for-sale financial assets 1,264 – 13 1,277

Other non-current financial assets – – 13 13

Securities 1,264 – – 1,264

Financial assets at fair value through profit or loss – 4 – 4

Other current financial assets – 4 – 4

Derivative financial instruments included in a hedging relationship – 13 – 13


Financial liabilities at fair value through profit or loss 634 – – 634

Other current financial liabilities 634 – – 634



in € million Fair value hierarchy in accordance with IFRS 13

Level 1 Level 2 Level 3

Fair value

31 Dec. 2012

ASSETS

Available-for-sale financial assets 1,035 – 15 1,050

Other non-current financial assets – – 15 15

Securities 1,035 – – 1,035

Financial assets at fair value through profit or loss – 35 – 35

Non-current financial assets – 34 – 34

Other current financial assets – 1 – 1



Financial liabilities at fair value through profit or loss 658 10 – 668

Non-current financial liabilities 658 – – 658

Other current financial liabilities – 10 – 10


No transfers between hierarchy levels took place in financial year 2013.

In the maxingvest Group, securities carried at fair value and the euro debut bond reported under current financial

liabilities are allocated to fair value hierarchy level 1 and are measured at current quoted prices on the reporting

date.

The derivative financial instruments reported in other current financial assets and liabilities are allocated to fair

value hierarchy level 2. The fair values of currency forwards are calculated using the exchange rate as at the report-

ing date and discounted to the reporting date on the basis of their respective yield curves. The fair values of inter-

est rate derivatives are calculated on the basis of current interest rates and yield curves as well as their remaining

terms as at the reporting date using appropriate financial techniques. The fair values of commodities futures trans-

actions are calculated by reference to current quoted prices for coffee and current exchange rates as at the

reporting date using appropriate financial techniques.

The equity investments in private equity funds reported under other non-current financial assets are allocated to

fair value hierarchy level 3. The fair values of the assets in the funds are measured on the basis of reference values

for comparable companies using revenue and EBITDA multiples for the sector concerned or on the basis of reference

prices from market transactions. In addition, operating results, the financial position and the current market situa-

tion in particular are taken into account in the measurement, alongside other information. The portfolio companies

are measured on a quarterly basis using a standardised process. If the portfolio companies’ results of operations or

the measurement assumptions change, this could result in additional gains and losses that are mostly recognised

in other comprehensive income.

107

Changes in level 3 financial assets measured at fair value


Balance at 1 January 15 13

Remeasurement gains recognised in other comprehensive income – 1

Additions 3 4

Disposals 5 3

Balance at 31 December 13 15

(21) Disclosures on derivative financial instruments

The recognised fair values of the various derivative financial instruments are presented in the following table, which

also indicates whether or not the derivative is part of an effective hedging relationship in accordance with IAS 39.


ASSETS

Interest rate swaps not included in hedging relationship 4 34

Interest rate options not included in hedging relationship – –

Currency forwards not included in hedging relationship – –

Currency forwards related to fair value hedges 3 2

Currency forwards related to cash flow hedges 10 9

Commodities futures transactions not included in hedging relationship – 1

17 46


Currency forwards not included in hedging relationship 4 8

Currency forwards related to fair value hedges 6 5

Currency forwards related to cash flow hedges 5 6

Commodities futures transactions not included in hedging relationship 1 2

16 21

As a result of the cash flow hedges used to hedge currency risk, unrealised gains on the measurement of the

derivatives used amounting to € 3 million (previous year: € 2 million) were recognised directly in equity in the finan-

cial year. In the same period, profit of € 2 million (previous year: losses of € 8 million) was reclassified from equity

to the income statement (net financial income).


(22) Leases

The Company and its subsidiaries have entered into various operating leases for premises, machinery, office equip-

ment and other equipment and facilities.

The lease expenses are composed of the following items:


Lease payments 147 148

Income from subleases – 7 – 8

140 140

Future minimum lease payments arising from non-cancellable operating leases are as follows:


during the 1st year 125 121

years 2 to 5 261 262

after 5 years 52 73

438 456

(23) Contingent liabilities, other financial obligations, and legal risks

The maxingvest Group has potential obligations arising from antitrust law investigations, among other things. To

the extent that an outflow of resources embodying economic benefits is likely to be required to settle these obliga-

tions, provisions were established for the pending antitrust proceedings. However, no conclusive assessment of the

risk from the Group’s perspective is possible at present.

The state of São Paulo is demanding tax back payments of approximately € 130 million from the Brazilian subsidiar-

ies in the Beiersdorf segment for the years 2005 to 2009. State tax authorities allege that VAT on imports should

have been paid in the state of São Paulo instead of the Brazilian state of landing. The authorities reached final

decisions on two proceedings in 2013 and the remaining decisions are expected to be made in 2014. One case has

already been transferred to financial court proceedings; the others are expected to follow in 2014. Guarantees in

the amount of the dispute must be furnished in order to initiate financial court proceedings. The court can also

demand a surcharge of 20 % of the value of the dispute. Further back tax payment notices for a similar amount are

expected for the years 2010 to 2013. We do not consider utilisation to be probable in any of these cases. The

Brazilian courts are not expected to reach a final decision for a number of years.

109

Along with other companies, affiliates of Beiersdorf in Belgium and France are involved in antitrust proceedings

relating to cosmetics products on a national level. The statements of objection have now been issued. To the extent

that an outflow of resources embodying economic benefits is likely to be required to settle these obligations, pro-

visions were established for the pending antitrust proceedings in the amount of the best estimate of the settlement

value. However, no conclusive assessment of the risk from the Group’s perspective is possible at present.

Estimating potential future expenses is subject to considerable uncertainty. The maxingvest Group does not expect

these obligations to have any material adverse effect on the economic or financial situation of the Group.

Liabilities under guarantees amounted to € 22 million as at the reporting date (previous year: € 2 million).

CONSOLIDATED INCOME STATEMENT DISCLOSURES

(24) revenues


Tchibo segment 3,461 3,568

Beiersdorf segment 6,141 6,040

Holding/Consolidation segment 1 –

9,603 9,608

A breakdown of revenues and their development by division and region can be found in the segment reporting

section.

(25) Cost of sales

This item comprises the cost of sold internally generated products and the purchase costs for merchandise sold. In

addition to directly attributable costs such as material, personnel and energy costs, the cost of intern ally generated

products also comprises production-related overheads, including the depreciation of production facilities. The cost

of sales includes write-downs of inventories.

(26) Marketing and selling expenses

Marketing and selling expenses include the cost of marketing, the sales organisation and distribution logistics. This

item also includes write-downs of trade receivables. Marketing expenses for advertising, trade marketing and

similar items amounted to € 1,752 million (previous year: € 1,694 million).

(27) research and development costs

Research and development costs include the cost of research as well as of product and process development,

including expenses for third-party services. Development projects are examined to establish whether the criteria

specified in IAS 38 for recognising internally generated intangible assets are met. Development costs that do not

meet these criteria are recognised as an expense in full in the period in which they are incurred.


(28) general administrative expenses

General administrative expenses amounted to € 420 million in financial year 2013 (previous year: € 410 million).

Personnel and non-personnel administrative expenses are reported in this item, as well as the cost of external

services, unless they are charged to other consuming functions.

(29) Other operating income


Exchange rate gains 83 67

Income from the reversal of provisions 134 113

Reversals of impairment losses on purchased trademarks 24 5

Gains on disposal of non-current assets 6 15

Miscellaneous income 136 138

383 338

Income from the reversal of provisions was due among other things to restructuring provisions that are no longer

required in connection with previous equity interests, and to the reassessment of litigation risks and other

provisions. Miscellaneous income includes income from other accounting periods, income from the reversal of

write-downs of receivables and other operating income.

(30) Other operating expenses


Exchange rate losses 86 125

Restructuring expenses 24 52

Impairment losses on intangible assets and property, plant and equipment 13 31

Losses on disposal of non-current assets 8 7

Miscellaneous expenses 144 175

275 390

Restructuring expenses of € 15 million (previous year: € 37 million) in financial year 2013 are solely attributable to

the Beiersdorf subgroup and relate to expenses in connection with the realignment of corporate structures and

processes, which was largely attributable to the restructuring of the China business.

Miscellaneous expenses include additions to provisions for litigation and other risks, as well as miscellaneous other

operating expenses.

111

(31) Financial income


Interest income 76 73

Other financial income 102 86

178 159

Interest income is mainly attributable to the “cash and cash equivalents” and “securities” items. Other financial

income primarily includes exchange rate gains on financial items and income from derivative financial instruments

that are mainly attributable to hedging interest rate risks arising from the euro debut bond.

(32) Financial expense


Interest expense 1) 60 54

Other financial expenses 122 110

182 164

Interest expense is mainly attributable to financial liabilities.

Other financial expenses include in particular exchange rate losses on financial items and changes in the fair value

of the euro debut bond.

(33) Net income according to measurement category

The following table presents the net gains and losses from financial instruments. It does not comprise the gains

and losses from derivative financial instruments that are included in a hedging relationship.


Net gains and losses

Loans and receivables – 7 – 46

Available-for-sale financial assets 14 1

Financial assets at fair value through profit or loss 32 11

Financial liabilities at fair value through profit or loss – 40 – 49

Other financial liabilities 4 – 37

The net loss from loans and receivables relates to foreign currency translation. The net gain on available-for-sale

financial assets primarily comprises remeasurement gains on the remeasurement of securities measured at fair

value. The net gain on other financial liabilities relates to gains on foreign currency translation.




The net gains/losses on financial assets and liabilities at fair value through profit or loss comprise gains/losses on

changes in fair value, interest income and expense, foreign currency measurement adjustments and disposal gains.

(34) Total interest income and expense

The following table presents the total interest income and expense calculated using the effective interest method

for financial assets and financial liabilities that were not measured at fair value through profit or loss.


Total interest income 35 51

Total interest expense 6 9

(35) Income taxes

Income tax expense including deferred taxes is composed of the following items:


Income taxes

Germany 172 169

International 174 150

346 319

Deferred taxes 1) – 19 – 21

327 298

Tax loss carryforwards and unused tax credits for which no deferred tax assets were recognised amount to

€ 265 million (previous year: € 286 million). The expiration dates of the tax loss carryforwards are shown below.

in € million 31 Dec. 2013 31 Dec. 2012

Expiration date within

1 year 24 6

2 years 45 20

3 years 52 23

more than 3 years 117 212

Can be carried forward for an unlimited period 27 25

265 286



113

No deferred taxes were recognised for temporary differences arising on undistributed profits at subsidiaries as,

from today’s perspective, these profits will remain permanently invested in the companies. Where distributions are

planned, the tax consequences are deferred accordingly. The liability is calculated based on the respective with-

holding tax rates, taking into account the German tax rate applicable to distributed corporate dividends, where

applicable. Deferred tax liabilities of € 16 million (previous year: € 14 million) were recognised in the year under

review.

Deferred taxes relate to the following balance sheet items:

Deferred tax assets Deferred tax liabilities

in € million 31 Dec. 2013 31 Dec. 2012 31 Dec. 2013 31 Dec. 2012

Non-current assets 45 41 1,183 1,187

Inventories 26 27 4 11

Receivables and other assets 21 22 18 31

Provisions 1) 69 71 106 107

Liabilities 60 72 3 3

Loss carryforwards 18 21 – –

239 254 1,314 1,339

Offset 1) – 71 – 92 – 71 – 92

Deferred taxes recognised in the balance sheet 1) 168 162 1,243 1,247

The deferred taxes recognised in the balance sheet include a cumulative amount of € 73 million (previous year:

€ 74 million) recognised as an increase in equity in other comprehensive income. This resulted from income of

€ 79 million (previous year: € 76 million) from the remeasurement of defined benefit obligations, an expense of

€ 2 million (previous year: € 1 million) from the fair value measurement of cash flow hedges, and an expense of

€ 4 million (previous year: € 0 million) from the fair value measurement of available-for-sale financial assets.

For an effective tax rate of 30.4 % (previous year: 32.6 %), the current tax expense is € 36 million higher than the

expected tax expense. The rate used for the expected tax expense, calculated as the weighted average of the tax

rates of the individual Group companies, is 27.1 % (previous year: 28.1 %).




The following table shows the reconciliation of the expected to the effective tax expense:


Profit before income taxes 1) 1,076 914

Tax rate in % 27.1 28.1

Expected tax expense 1) 291 257

Effects of recognition adjustments/valuation allowances on deferred taxes 7 1

Effects of taxes from prior years recognised in the financial year – 8 –20

Effects of non-deductible business expenses 54 46

Effects of tax-free income – 21 –15

Other effects 4 29

Effective tax expense in accordance with the income statement 1) 327 298

Effective tax rate in % 30.4 32.6

(36) profit attributable to non-controlling interests

The share of the maxingvest Group’s profit attributable to non-controlling interests is € 295 million (previous year:

€ 242 million). Non-controlling interests are held in particular in Beiersdorf AG, Hamburg, and BBG Beteili-

gungsgesellschaft mbH, Gallin.

(37) Earnings per share

Earnings per share in the year under review amounted to € 123.95 (previous year: € 96.32 1)). The basis for the

calculation is the profit after tax excluding profit attributable to non-controlling interests. Earnings per share were

calculated on the basis of the average number of 3,660,001 no-par value ordinary shares in the year under review

(previous year: an average of 3,885,001 shares).

Since there are no outstanding financial instruments that can be exchanged for shares, there is no difference

between basic and diluted earnings per share.



115

(38) Other disclosures

Depreciation, amortisation and impairment losses

The depreciation, amortisation and impairment losses contained in the functional costs are as follows:


Intangible assets

Amortisation 26 19

Impairment losses – 21

26 40

property, plant and equipment

Depreciation 151 181

Impairment losses 13 10

164 191

190 231

Employees

The following annual average headcounts relate to the maxingvest Group (excluding the Management Board):

2013 2012

Germany 14,229 14,213

International 14,849 15,067

29,078 29,280

The breakdown of employees by function is as follows:

2013 2012

Production 5,288 5,400

Marketing and sales 17,871 18,010

Other functions 5,919 5,870

29,078 29,280

A breakdown of employees by the divisions of the maxingvest Group can be found in the segment reporting

section. Personnel expenses for the maxingvest Group amounted to € 1,475 million (previous year: € 1,412 million).


CONSOLIDATED CASH FLOW DISCLOSURES

The cash flow statement is prepared in accordance with the requirements of IAS 7 – “Cash Flow Statements”, with

cash flows classified by operating, investing and financing activities.

Cash flows from operating activities are reported using the indirect method. Cash flows from investing activities

are reported using the direct method. These comprise cash flows that generate income over the long term, usually

after a period of more than one year. Cash flows from financing activities are also reported using the direct

method. These comprise cash flows resulting from transactions with shareholders and from entering into and set-

tling non-current financial liabilities.

The effects on cash and cash equivalents of exchange rate changes are presented separately.

Cash and cash equivalents as reported in the consolidated cash flow statement include items that can be con-

verted into cash at any time and are subject only to insignificant fluctuations, as well as liabilities owed to banks

from overdraft facilities.

117

SEGMENT REPORTING

The maxingvest Group reports the Tchibo, Beiersdorf and Holding company operating segments. These segments

reflect the Group’s internal management and reporting. The purpose of the Tchibo operating segment is to source

and sell coffee, consumer merchandise, power, as well as services such as mobile communications services and

travel. The purpose of the Beiersdorf operating segment is to manufacture and distribute branded consumer goods

(in particular the NIVEA brand) in the area of skin and body care, as well as the manufacturing and distribution of

technical adhesive tapes.

maxingvest ag’s asset and investment management activities are grouped together in the Holding company

operating segment. This operating segment also comprises the differences between the carrying amounts and the

fair values of the assets and liabilities acquired as part of the acquisition of the majority interest in Beiersdorf AG,

Hamburg, the goodwill arising from the transaction and the resulting depreciation effects.

The same accounting principles are used to present the segment information as for maxingvest’s consolidated

financial statements. The maxingvest Group assesses the earnings power of its operating segments mainly on the

basis of revenues and operating profit before interest and taxes (EBIT).

EBITDA shows operating profit/loss (EBIT) before depreciation and amortisation.

In order to show the global breakdown of business activities in the maxingvest Group, information on the geo-

graphic regions is presented in addition to the operating segments. A Turkish subsidiary in the Beiersdorf segment

was reclassified from the Europe excluding Germany region to Africa/Asia/Australia at the start of financial year

2013. The information for the previous year has been adjusted accordingly. External revenue in the regions shows

the development of revenue by the domicile of the companies.


OpErATINg SEgMENTS 2013 in € million Tchibo Beiersdorf Holding Total

Reconcili -ation Group

Revenues 3,461 6,141 1 9,603 – 9,603

Annual percentage change (nominal) – 3.0 1.7 – – 0.1 – – 0.1

Share of Group revenues in % 36 64 – 100 – 100

EBITDA 281 926 39 1,246 – 1,246

Operating result (EBIT) 221 820 39 1,080 – 1,080

as % of revenues 6.4 13.4 – 11.3 – 11.3

Operating segment assets 1,065 2,956 5,463 9,484 4,184 13,668

Operating segment liabilities 499 1,670 29 2,198 3,237 5,435

Capital expenditure 84 227 – 311 – 311

Depreciation 60 106 11 177 – 177

Impairment losses – – 13 13 – 13

Reversals of impairment losses – – 24 24 – 24

Employees (annual average) 12,458 16,573 47 29,078 – 29,078

OpErATINg SEgMENTS 2012in € million Tchibo Beiersdorf Holding Total

Reconcili - ation Group

Revenues 3,568 6,040 – 9,608 – 9,608

Annual percentage change (nominal) 0.8 7.2 – 4.7 – 4.7

Share of Group revenues in % 37 63 – 100 – 100

EBITDA 279 850 16 1,145 – 1,145

Operating result (EBIT) 221 698 – 919 – 919

as % of revenues 6.2 11.6 – 9.6 – 9.6

Operating segment assets 1) 1,102 2,842 5,405 9,349 4,140 13,489

Operating segment liabilities 1) 607 1,739 93 2,439 3,294 5,733

Capital expenditure 118 151 1 270 – 270

Depreciation 58 130 12 200 – 200

Impairment losses – 22 9 31 – 31

Reversals of impairment losses – – 5 5 – 5

Employees (annual average) 12,274 16,963 43 29,280 – 29,280

The percentage changes relate to amounts calculated in € thousand.



119

By rEgION 2013 in € million Germany

Europe excluding Germany Americas

Africa/ Asia/Australia Group

Revenues 3,887 2,965 1,092 1,659 9,603

Annual percentage change (nominal) – 1.3 – 2.7 – 4.9 12.5 – 0.1

Share of Group revenues in % 41 31 11 17 100

Capital expenditure 179 52 55 25 311

Employees (annual average) 14,229 7,879 2,167 4,803 29,078

By rEgION 2012 in € million Germany

Europe excluding Germany Americas

Africa/ Asia/Australia Group

Revenues 1) 3,937 3,047 1,149 1,475 9,608

Annual percentage change (nominal) – 2.5 4.5 15.6 20.3 4.7

Share of Group revenues in % 41 32 12 15 100

Capital expenditure 144 69 33 24 270

Employees (annual average) 14,213 7,985 2,129 4,953 29,280

The percentage changes relate to amounts calculated in € thousand.

1) The prior-year figures have been adjusted due to the reclassification of the Beiersdorf segment’s Turkish subsidiary from Europe excluding Germany to

Africa/Asia/Australia.


The following table shows the reconciliation of operating segment assets and operating segment liabilities to the

balance sheet items:

ASSETS in € million 2013 2012

Intangible assets 5,335 5,308

Property, plant and equipment 1,174 1,096

Inventories 1,226 1,261

Trade receivables 1,308 1,278

Miscellaneous receivables and other assets (operating portion) 1) 441 406

Operating segment assets 9,484 9,349

Deferred tax assets 1) 168 162


Securities 1,741 1,893

Cash and cash equivalents 2) 1,269 1,127

Other non-operating segment assets 1) 906 787

Non-operating segment assets 4,184 4,140

Total assets 13,668 13,489

EquITy AND LIABILITIES in € million 2013 2012

EquITy 1)

8,233 7,756

TOTAL LIABILITIES

Other provisions (operating portion) 3) 765 923

Trade payables 1,233 1,297

Miscellaneous liabilities (operating portion) 200 219

Operating segment liabilities 2,198 2,439

Income tax liabilities 135 187

Deferred tax liabilities 1) 1,243 1,247

Other non-operating liabilities 1) 1,859 1,860

Non-operating segment liabilities 3,237 3,294

5,435 5,733

Total assets 13,668 13,489


accounting policies”.2) Not including cash held by the branches in the Tchibo operating segment.3) Not including provisions for pension obligations.

121

OTHER DISCLOSURES

related party disclosures in accordance with IAS 24

Michael Herz is a member of the Management Board and Wolfgang Herz is a member of the Supervisory Board of

maxingvest ag. They hold a significant proportion of the shares of maxingvest ag. They must therefore be regard-

ed as related parties in accordance with IAS 24.

The operating business relationships of maxingvest ag and its subsidiaries with the companies of the related

parties are limited to a small volume (less than € 5 million) of leases, purchasing cooperations, licence agreements,

deliveries of goods, commission business and the provision or purchase of services. In this context, the maxingvest

Group maintains individual business relationships with companies of the Blume 2000-Gruppe, Norderstedt, with

Books on Demand GmbH, Norderstedt, with Carl Prediger GmbH & Co. KG, Hamburg, with fun fashion Vertrieb

GmbH, Norderstedt, with the Libri Group, Hamburg, with Participia Holding GmbH, Norderstedt, with Polaris

Immobilienmanagement GmbH, Norderstedt, with TOPP Holding AG, Hamburg, and with Überseering Immobilien-

Verwaltungsgesellschaft mbH & Co. KG, Norderstedt (related parties via Michael Herz or Wolfgang Herz).

Related party transactions were entered into on an arm’s-length basis.

Please refer to the following disclosures on the Supervisory Board and Executive Board for information on the

remuneration of members of the Supervisory Board and key management personnel of the maxingvest Group.

Otherwise, no material transactions were entered into with these related party individuals.

Disclosures on the Supervisory Board and the Management Board

Total remuneration

Key management personnel of the maxingvest Group received the following remuneration in financial year 2013:

short-term benefits of € 11 million (previous year: € 12 million)

post-employment benefits of € 3 million (previous year: € 3 million)

other long-term benefits of € 4 million (previous year: € 5 million)

termination benefits of € 1 million (previous year: € 1 million)

no share-based payment


Key management personnel include the members of the Management Board of maxingvest ag and Beiersdorf AG,

as well as the members of the management of Tchibo GmbH.

Former Management Board members and their surviving dependants received total remuneration of € 4 million

(previous year: € 4 million). Provisions totalling € 56 million (previous year: € 55 million) were recognised for pension

obligations to former members of the Management Board of maxingvest ag and Beiersdorf AG, as well as the

management of Tchibo GmbH and their respective surviving dependants.

In accordance with section 286 (4) of the HGB, no disclosures are made in relation to the total remuneration of the

members of the Management Board of maxingvest ag, as the remuneration of an individual member would be

identified in the year under review and the previous year as a result of these disclosures.

The members of the Supervisory Boards of the above-mentioned companies received short-term remuneration

totalling € 2 million (previous year: € 2 million) in financial year 2013, of which € 1 million (previous year:

€ 1 million) is attributable to the Supervisory Board members of maxingvest ag.

Loans extended

No loans have been extended to members of the Supervisory Board or the Management Board.

Exercise of exemptions

The following companies have entered into a profit and loss transfer agreement with maxingvest ag or with Tchibo

GmbH, which is itself linked to maxingvest ag by a profit and loss transfer agreement:

maxingvest Beteiligungsverwaltung GmbH

Tchibo Anlagen-Verwaltungsgesellschaft mbH

Tchibo Coffee Service GmbH

Tchibo Energie GmbH

Tchibo GmbH

G.C. Breiger & Company GmbH

SCS Skin Care Studio GmbH

These companies are included in the consolidated financial statements of maxingvest ag as German subsidiaries

and exercise the exemption in section 264 (3) of the HGB in respect of this inclusion. All shareholders of the above-

mentioned companies have approved the exemption for the financial year 2013. The relevant resolutions by the

shareholders are disclosed in accordance with section 325 of the HGB.

123

In addition, the following commercial partnerships

Olymp Vermögensverwaltungs GmbH & Co. Dienstleistungs-KG,

Tchibo Markenverwaltungs GmbH & Co. KG,

Tchibo Manufacturing GmbH & Co. KG,

which are also included in maxingvest ag’s consolidated financial statements, exercised the exemption option

under section 264b of the HGB.

Information on Beiersdorf Ag’s Declaration of Compliance

Beiersdorf AG, Hamburg, is a listed company that is included in maxingvest ag’s consolidated financial statements.

In December 2013, Beiersdorf AG’s Executive Board and Supervisory Board issued their Declaration of Compliance

with the recommendations of the Government Commission on the German Corporate Governance Code for

financial year 2013 in accordance with section 161 of the Aktiengesetz (AktG – German Stock Corporation Act).

The Declaration of Compliance was made permanently accessible to shareholders on the Company’s website at

www.Beiersdorf.com/Declaration_of_Compliance.

Shareholdings of maxingvest ag

The list of shareholdings in accordance with section 313 (2) of the HGB is reproduced under the information on the

consolidated Group starting on page 57.

Shareholdings in maxingvest ag

The Company was notified of the following shareholdings requiring notification under section 20 (1) and (4) of the

AktG by the date of preparation of the financial statements (21 March 2014):

Mr. Michael Herz has informed us with reference to section 20 (1) of the AktG in conjunction with section 16 of

the AktG that he holds more than one quarter of the shares of maxingvest ag, since the shares of Trivium Vermö-

gensverwaltungs GmbH, which is controlled by him via SPM Beteiligungs- und Verwaltungs GmbH, are attributable

to him in accordance with section 16 (4) of the AktG.

Trivium Vermögensverwaltungs GmbH has

a) informed us with reference to section 20 (1) of the AktG that it holds more than one quarter of the shares of

maxingvest ag;

b) informed us with reference to section 20 (3) of the AktG that, even without the attribution of additional

shares in accordance with section 20 (2) of the AktG, it holds more than one quarter of the shares of

maxingvest ag.

SPM Beteiligungs- und Verwaltungs GmbH has

a) informed us with reference to section 20 (1) of the AktG in conjunction with section 16 of the AktG

that it holds more than one quarter of the shares of maxingvest ag, since the shares held by Trivium Vermö-

gensverwaltungs GmbH, which it controls, are attributable to it in accordance with section 16 (4) of the AktG;

b) informed us with reference to section 20 (3) of the AktG that, even without the attribution of add itional


maxingvest ag, since the shares of Trivium Vermögensverwaltungs GmbH, which it controls, are attributable

to it in accordance with section 16 (4) of the AktG.


Mr. Wolfgang Herz has informed us with reference to section 20 (1) of the AktG in conjunction with section 16 of

the AktG that he holds more than one quarter of the shares of maxingvest ag, since the shares of Scintia Vermö-

gensverwaltungs GmbH, which is controlled by him via E.H. Real Grundstücksverwaltungsgesellschaft mbH, are

attributable to him in accordance with section 16 (4) of the AktG.

Scintia Vermögensverwaltungs GmbH has

a) informed us with reference to section 20 (1) of the AktG that it holds more than one quarter of the shares of

maxingvest ag;


shares in accordance with section 20 (2) of the AktG, it holds more than one quarter of the shares in

maxingvest ag.

E.H. Real Grundstücksverwaltungsgesellschaft mbH has

a) informed us with reference to section 20 (1) of the AktG in conjunction with section 16 of the AktG that it

holds more than one quarter of the shares of maxingvest ag, since the shares of Scintia Vermögensverwal-

tungs GmbH, which it controls, are attributable to it in accordance with section 16 (4) of the AktG;



maxingvest ag, since the shares of Scintia Vermögensverwaltungs GmbH, which it controls, are attributable

to it in accordance with section 16 (4) of the AktG.

Audit

The following table provides an overview of the total fees calculated for the auditors of the consolidated financial

statements, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Hamburg, for the financial year:

in € thousand 2013 2012

Audit services 2,027 1,800

Other assurance services 21 243

Tax advisory services 395 229

Other services 159 189

2,602 2,461

Hamburg, 21 March 2014

maxingvest ag

The Management Board


125

AuDIT OpINION

“We have audited the consolidated financial statements prepared by maxingvest ag, Hamburg, comprising the

consolidated balance sheet, the consolidated income statement, the consolidated statement of comprehensive

income, the statement of changes in equity, the cash flow statement and the notes to the consolidated financial

statements, together with the group management report for the financial year from 1 January to 31 December

2013. The preparation of the consolidated financial statements and the group management report in accordance

with IFRSs as adopted by the EU, and the additional requirements of 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 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 and German

generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschafts-

prüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the audit

such that misstatements materially affecting the presentation of the net assets, financial position and results of

operations in the consolidated financial statements in accordance with the applicable financial reporting frame-

work and in the group management report are detected with reasonable assurance. Knowledge of the business

activities and the economic and legal environment of the Group and expectations as to possible misstatements are

taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal

control system and the evidence supporting the disclosures in the consolidated financial statements and the group

management report are examined primarily on a test basis within the framework of the audit. The audit includes

assessing the annual financial statements of those entities included in consolidation, the determination of entities

to be included in consolidation, the accounting and consolidation principles used and significant estimates made

by management, as well as evaluating the overall presentation of the consolidated financial statements and the

group management report. We believe that our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs as

adopted by the EU, the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB [and

supplementary partnership agreement/articles of incorporation and bylaws] and full IFRS and give a true and fair

view of the net assets, financial position and results of operations of the Group in accordance with these require-

ments. The group management report is consistent with the consolidated financial statements and as a whole

provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future

development.”


Ernst & Young GmbH

Wirtschaftsprüfungsgesellschaft

Grummer Jeschonneck

Wirtschaftsprüfer Wirtschaftsprüfer

[German Public Auditor] [German Public Auditor]

AuDITOrS’ rEpOrT AND rESpONSIBILITy STATEMENT

126 AuDITOrS’ rEpOrT AND rESpONSIBILITy STATEMENT

rESpONSIBILITy STATEMENT By ThE MANAgEMENT BOArD

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated

financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the

Group, and the combined management report on the Company and the Group includes a fair review of the

development and performance of the business and the position of the Group, together with a description of the

principal opportunities and risks associated with the expected development of the Group.


The Management Board


127

COrpOrATE gOvErNANCE AT MAXINgvEST Ag

RESPONSIBLE CORPORATE MANAGEMENT AND A FOCUS ON VALUE

Responsible corporate management has always played an important role at maxingvest ag. Management has

always regarded good corporate governance – defined as conscientious, transparent management and control

aligned to a long-term increase in value – as a key management criterion. The Group is managed using value-based

parameters and systematically focuses on long-term value creation.

The Management of Tchibo GmbH and the Management Board of maxingvest ag have drawn up a Code of Con-

duct, which is binding for all employees. It contains 13 basic rules for cooperation and dealings with business

partners and explains how they are implemented. The Code of Conduct also provided for the appointment of an

external ombudsman to whom breaches of the rules may be reported in confidence at any time.

TRANSPARENCY

The Group’s active, open communications provide all target groups with comprehensive information needed for

the decision-making process, ensuring that maxingvest ag’s external communications comply with the obligations

applicable to listed companies. The maxingvest Group prepares its consolidated financial statements in accordance

with IFRSs and thus in compliance with internationally recognised standards. A depend ent company report

pursuant to section 312 of the AktG provides information on relationships with affiliated companies. Our annual

report and additional information on the Company are also made available on the Internet, thus ensuring they are

readily accessible to all interested parties.

COOPERATION BETWEEN EXECUTIVE BODIES

The Management Board and the Supervisory Board work together closely in the interests of the Company.

The ongoing, intensive dialogue between the two bodies is based on openness and transparency, respect for

stakeholder interests and a clear assignment of responsibilities. The Management Board provides the Supervisory

Board with regular, comprehensive information on all issues relevant to the Company’s business development,

performance and risk position in a timely manner. The strategic focus of the Company is agreed with the Super-

visory Board and significant transactions require its approval. The Supervisory Board has established a number of

committees focusing on certain specialist areas to increase the efficiency of its work and to deal with specific

complex issues.

FurThEr INFOrMATION

128

ACKNOWLEDGEMENTS

published by

maxingvest ag

Überseering 18

22297 Hamburg

Germany

Phone + 49 40 63 87 - 28 76

Fax + 49 40 63 87 - 25 30

Email [email protected]

Internet www.maxingvest.com

Concept and design

Berichtsmanufaktur GmbH, Hamburg

English translation

Fry & Bonthrone Partnerschaft, Mainz-Kastel

EnglishBusiness AG, Hamburg

print

Books on Demand GmbH, Norderstedt

This annual report is also available in German.

This report is printed on FSC-certified paper.

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Annual Report

Ann

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Überseering 18 · 22297 Hamburg · www.maxingvest.com

Documents

13 - maxingvest · 13 13 Annual Report ... sophisticated multichannel distribution system with its own ... above all NIVEA – increasing its innovative power,