Annual Report • Apr 9, 2015
Annual Report
Open in ViewerOpens in native device viewer
| 2 | IMAGE MOVIE |
|---|---|
| 3 | KEY FIGURES |
| 4 | PREFACE BY THE MANAGEMENT BOARD |
| 6 | REPORT OF THE SUPERVISORY BOARD |
| 9 | THE BASLER SHARE |
| 12 | CORPORATE GOVERNANCE |
| 13 | MANAGEMENT REPORT |
| 28 | FIGURES / RESULTS |
| 37 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| 59 | AUDITORS' AUDIT OPINION |
| 60 | DECLARATION OF THE LEGAL REPRESENTATIVES |
| 61 | EVENTS 2015 |
| in € m* | 2012 | 2013 | 2014 | Changes to previous year |
|---|---|---|---|---|
| Sales revenues | 55.9 | 65.1 | 79.2 | 22 % |
| Incoming orders | 60.6 | 68.6 | 82.7 | 21 % |
| Gross results | 26.9 | 32.5 | 41.0 | 26 % |
| Gross profit margin | 48.1 % | 49.9 % | 51.8 % | 2 Pp. |
| Full costs for research and development | 8.3 | 9.1 | 11.0 | 21 % |
| Research and development ratio | 14.8 % | 14.0 % | 13.9 % | 0 Pp. |
| EBITDA | 13.4 | 14.0 | 18.0 | 29 % |
| EBIT | 8.3 | 8.5 | 12.5 | 47 % |
| EBT | 5.6 | 7.8 | 11.1 | 42 % |
| Net income | 4.1 | 5.6 | 8.2 | 46 % |
| Weighted average number of shares | 3,372,588 | 3,281,312 | 3,219,331 | -2 % |
| Result per share (€) | 1.21 | 1.70 | 2.54 | 49 % |
| Cash flow from operating activities | 12.6 | 12.1 | 16.0 | 32 % |
| Cash flow from investing activities | -6.3 | -6.5 | -8.6 | 32 % |
| Free Cash flow | 6.3 | 5.6 | 7.4 | 32 % |
| Changes to | ||||
| in € m* | 12/31/2012 | 12/31/2013 | 12/31/14 | previous year |
| Total assets | 58.5 | 63.3 | 72.3 | 14 % |
| Long-term assets | 34.5 | 35.6 | 38.8 | 9 % |
| Equity | 29.6 | 32.5 | 37.3 | 15 % |
| Liabilities | 28.9 | 30.8 | 35.0 | 14 % |
| Equity ratio | 50.6 % | 51.3 % | 51.6 % | 0 Pp. |
| Net cash | 3.5 | 3.7 | 4.5 | 22 % |
| Working Capital | 12.0 | 13.7 | 17.1 | 25 % |
| Number of employees for the fiscal year | ||||
| (full-time equivalents) | 290 | 325 | 375 | 15 % |
| Share price (XETRA) in € | 13.79 | 29.00 | 38.66 | 33 % |
| Number of shares in circulation | 3,325,664 | 3,238,184 | 3,181,136 | -2 % |
| Market capitalization | 45.9 | 93.9 | 123.0 | 31 % |
Hardy Mehl
Arndt Bake
Dr. Dietmar Ley
John P. Jennings
Dear shareholders, employees, customers, and business partners,
We are pleased that we have been able to continue our profitable growth strategy in 2014 and would like to inform you about the details in our annual report.
We exceeded our previous sales and result record values of the financial year 2013 and were able to even increase the speed of our growth. Our sales rose by 22 % to € 79.2 million and our pre-tax result grew by 42 % to € 11.1 million. A positive free cash flow of € 7.4 million allowed us to finance this growth out of own resources and, moreover, to increase our net liquidity as well as the number of own shares.
With these results, we grew more than twice as fast as the German image processing components industry whose sales increased by 8 % (source: VDMA, Verband Deutscher Maschinen- und Anlagenbau, German Engineering Federation). We further expanded our market shares in all regions – EMEA, Asia, and America – whereas Asia again showed the highest growth dynamics. This success is due to the consistent implementation of our volume strategy as well as to the diversification in applications outside of factory automation.
In summer 2014, we supplemented our longstanding sales and service office in Singapore with a production facility and thus reached another important milestone towards globalization. In the future, cameras for the Asian markets will be manufactured in Singapore according to the same quality standards as in Germany. We started production with a limited product portfolio
and will gradually increase the number of locally manufactured products thus moving closer to our Asian customers.
Our passionate and committed employees as well as an innovation fostering company culture are two essential success factors for these positive results of the past reporting period. We are very proud of both and would like to further develop and expand these two success factors in the future. In the elapsed fiscal year, we hired 52 new employees with a very low fluctuation rate of less than one percent. The search for personnel was positively impacted by the consistently developed employer brand and the measures for reconciling family and work life. For maintaining the company culture, in 2014 we set a high value on the selection and adequate integration of new colleagues. We would like to take this opportunity to thank all employees for this record result achieved in the financial year 2014 and would like to let you participate in the success of the company by paying a bonus for your contributions and efforts.
We thank our customers for using our products, the continuous communication and feedback enabling us to further develop them, as well as for the trust in our company. Also in 2014, we further expanded our product portfolio and range of services for you and constantly took measures to improve efficiency in order to offer you a unique price/performance ratio.
We would also like to thank our shareholders for the trustful and excellent cooperation in the course of the reporting period. The positive results of the fiscal year 2014 enable us to let you participate for the fifth time in a row in the success of the company. We will therefore
MANAGEMENT BOARD forward a proposal to the general meeting 2015 suggesting to pay a dividend for the financial year 2014 in the amount of 70 Cents per share, consisting of a basic dividend of 20 Cents per share and an additional dividend of 50 Cents per share. Should that proposal be adopted, the planned dividend payment of a total of € 2.23 million would correspond to about 27 % of the net result.
For 2015, economic research institutes and banks assume a restrained upturn of the global economy with ongoing geopolitical risks. In principle, we share this estimation for our market environment. In comparison to the economic forecast, we are more positive about the development of the Chinese image processing market. On the basis of discussions with our customers and forecasts of associations and market research institutes we expect our market to grow by approximately 5 - 8 % in 2015.
For our camera business, in 2015 we expect growth in sales to continue as in the previous years. Important factors for growth will be sales with new products, gains in market shares in important regional markets, as well as diversification in application fields outside of industrial mass production, as for example in the medical sector, retail applications, and logistics. We assume the Asian market to develop disproportionately positive again this year.
For the financial year 2015, we expect sales revenues for the group to be in a corridor between € 81 and 84 million and a pre-tax return between 9 and 10 %. Driven by a strong project business, this year's course of business will develop atypically compared to previous years. We expect a stronger than usual first quarter followed by a second and third quarter simultaneously developing on a slightly lower sales level, and a seasonal weakening in the fourth quarter.
With a high level of orders, an increased number of employees, a unique market access, a strong brand, solid liquidity, and a very attractive product portfolio, Basler AG is well positioned for the financial year 2015. Therefore, this year we are again confident to grow significantly faster than the market for image processing components.
The risk profile of our business model is well-balanced due to a large number of customers and target markets. Besides the high level of customer loyalty in the design-in business we underpin the sustainability of our business model by diversification in applications outside the factory. Thus, we are convinced to be able to continue with the implementation of our growth strategy and to exceed the sales threshold of € 100 million in the foreseeable future.
We look forward to move another step forward with you in 2015.
Ahrensburg, March 2015
The Management Board
Dr. Dietmar Ley John P. Jennings
(CEO) (CCO)
Arndt Bake Hardy Mehl
(CMO) (CFO/COO)
Prof. Dr. Eckart Kottkamp
Norbert Basler
Konrad Ellegast
In the elapsed fiscal year 2014, the supervisory board has fulfilled its incumbent obligations according to the law, the German Corporate Governance Code, the articles of incorporation and the rules of procedure of the supervisory board and has continuously monitored and advised the management board in its management activities. The management board has provided the supervisory board with written and oral reports on the economic position of Basler AG, its foreign subsidiaries, and its divisions on a monthly basis and has discussed the business and economic situation in detail with the chairman of the supervisory board.
In fiscal year 2014, four regularly occurring supervisory board meetings took place, which all members of the supervisory board attended. The meetings were held on March 18, June 4, September 19, and December 16. Moreover, one additional meeting in which the management board presented the strategy and the corresponding planning for the next years to the supervisory board was held on November 12. Committees as set forth in § 171, Section 2, Clause 2 of the Stock Corporation Act (AktG) were not formed, due to the small size of the supervisory board (three persons).
The management board and the supervisory board cooperate closely for the benefit of the company. The basis for this cooperation is frank and trusting discussion. The management board has coordinated the company's strategic orientation with the supervisory board and has reported in regular intervals to the supervisory board about the state of implementation. The supervisory board was involved in all major decisions of fundamental importance to the company. The management board has informed the supervisory board at regular intervals about all
relevant issues concerning the company's business development and risk situation. The chairman of the supervisory board is in regular contact with the CEO, and was informed by him about current developments and unusual occurrences and passed them on accordingly to the other members of the supervisory board. The supervisory board consented to those business dealings which, according to the law and the company's articles of incorporation, required its consent. This applies to decisions and measures of fundamental importance to the company's situation with regard to assets, finances, and revenue.
Significant issues the supervisory board dealt with in the elapsed fiscal year were inter alia:
Investor relations
Extension of the share buyback program
The BDO AG Wirtschaftsprüfungsgesellschaft which was selected as annual auditor by the shareholders' meeting on June 4, 2014, was commissioned by the chairman of the supervisory board to perform the audit by a letter of October 28, 2014. The annual auditor participated in the supervisory board meeting on March 17, 2015, in which the presented annual balance sheet and the reported essential results were discussed.
The accounting, the annual balance sheet as of December 31, 2014, and the situation report for Basler AG, along with the group's annual balance sheet as of December 31, 2014, and the group's situation report have been audited by the annual auditor, the BDO AG Wirtschaftsprüfungsgesellschaft, they have been found to be compliant with the applicable laws and the company's articles of incorporation, and they have each been furnished with an unconditional audit certificate. The supervisory board took consenting note of the audit result.
The supervisory board, on its part, examined the company's and the group's annual balance sheets and the company's and the group's situation reports in the context of the applicable legal regulations. No objections were raised. The supervisory board approved of and therewith established the annual balance sheet for Basler AG as prepared by the management board.
In accord with the Corporate Governance Code, the supervisory board regularly reviewed the efficiency of its work and enhanced it in connection with useful modifications related to the preparation and the document composition for its meetings. Furthermore, the supervisory board perceived on its own authority
education and training measures required to perform its duties.
The supervisory board members do not act as consultants to nor hold officer positions in executive bodies of clients, suppliers, creditors, or other business partners. Consequently, conflicts of interest did not arise with their mandates during the past fiscal year.
The report compiled by the management board according to § 312 of the Stock Corporation Act (AktG) on relations with affiliate companies was audited by the annual auditor and furnished with the following audit certificate:
"Following our duly performed audit and evaluation we herewith confirm that
the actual information given in the report is correct
and
the company's performance was not inappropriately high for the legal transactions specified for the reporting year".
The supervisory board took consenting note also of this audit report of the annual auditor. The supervisory board states after the concluding result of its own audit, that no objections are to be raised regarding the management board's statements on relations with affiliate companies.
The ambitious targets of the mid-term corporate planning were exceeded once again: In the elapsed fiscal year, Basler AG generated sales that are clearly above expectations and which are combined with the highest profitability of the company's history.
The company is growing considerably stronger than the market and thus is continuously expanding its market leadership. The repeatedly demonstrated high degree of innovative power regarding new products and new technologies ensures the sustainability of growth and profitability.
To be able to do both – ensuring a high level of operating efficiency in the present and, at the same time, creating the foundations for future competitiveness, growth, and profitability – requires a high degree of willingness to change and passion. Without the company's inherent enthusiasm for the future, without the joy of creativity, and without the courage to exchange the safety of things that are tried and true against opportunities of the unknown, there will be no continuous success. Following this conviction, major efforts were made especially along last year, in order to adjust company structures and
the company culture to this even more precisely than before. The capital that is needed for this and the time spent by the employees are a good investment in the future.
In addition to this, considerable energy was invested in the development of the strategy. The anticipated changes in our markets and the possibilities resulting from the technological progress are important opportunities for Basler AG and require an ongoing development of the strategic path.
One aspect of the company strategy is the increasing internationalization in the course of which more and more functions are to be installed also in the subsidiaries. In this regard, special mention should be made of the successful setup of a production facility in Singapore in the elapsed fiscal year. This organizational project is an example for the permanent adjustment of all structures to changing requirements.
The supervisory board is not only pleased with the outstanding operational achievements but also with the progress made in strategy, structure and culture issues in the course of the elapsed fiscal year. Thus, the financial year 2014 was a big success.
The supervisory board expressly thanks all employees, executives, and the members of the management board of Basler AG for the excellent and successful work they have accomplished in the past fiscal year.
Ahrensburg, March 2015
For the Supervisory Board
Chairman of the Supervisory Board
Norbert Basler Prof. Dr. Eckart Kottkamp Vice Chairman of the Supervisory Board
Konrad Ellegast Supervisory Board
In 2014, the stock markets experienced ups and downs. First, favorable economic outlooks provided gains. However, due to inter alia geopolitical uncertainties, the recovery began to stagnate putting pressure on the markets. Then again, in the second half year, monetary policy impulses caused increasing share prices. Overall, the German leading index DAX increased to more than 9,800 points starting at about 9,500 points at the beginning of the year. Also the European stock markets trended upward.
In this mainly positive capital market environment, the Basler share strongly gained value due to the excellent business development. The share opened the financial year 2014 at a price of € 28.62 and closed at a price of € 38.66 at the end of the market year. This corresponds to a share price increase of 35 %.
Already in the course of the first quarter, the Basler share price increased from € 28.62 at the beginning of the year to € 38.00 in March 2014 going through an annual low of € 28.21 at the end of January and closed the first quarter of 2014 at a price of € 35.00. In the second quarter, the share price slightly rose again to € 37.00 in April and settled at this level before the closing price was just below € 37.00 at the end of June. After the publication of the preliminary figures for the second quarter in July, the share price reached € 40.00 for the first time. In mid-September, the price temporarily reached the annual high of € 43.85 before closing the quarter at € 41.00. Mid-October, the interest in the share rose again, after having increased for the second time our profit guidance upon publication of the preliminary business figures for the third quarter. In November and December the share price settled at a level between € 38.00 and € 40.00 and closed at € 38.66 on December 31, 2014.
The continuing significant upward movement of our share price due to the positive sales and profit development in the elapsed fiscal year, confirms our decision made in autumn 2011 to start buying own shares in view of the favorable company valuation at that time.
The general meeting took place in the Hamburg Chamber of Commerce on June 4, 2014.
The investors present were given an extensive company presentation by the management board informing them about the strategic alignment of the company and the course of business in 2013. After a general debate all items were approved by more than 99 % of the voters present.
Please find detailed information about the general meeting 2014 here www.baslerweb.com.
The general meeting of May 18, 2010, authorized the company to buy back own shares amounting to a total of up to 10 % of the share capital of the corporation existing at the time the resolution was adopted. The authorization was approved through May 18, 2015. This resolution was superseded by the general meeting of June 4, 2014, and replaced by a new resolution. This reads as follows:
The company is authorized to buy back own shares amounting to a volume of up to 10 % of the share capital of the corporation existing at the time the resolution was adopted – or if this value is lower – at the time of the exercise of the authorization. The authorization is approved through June 3, 2019. The shares can be used for all purposes provided for in the authorization of the general meeting of June 4, 2014.
Convinced that sales and results would continuously improve over forthcoming reporting periods, in September 2011, the management board decided first to buy back shares with an equivalent of € 1 million. Further share buyback programs with an equivalent of € 1 million each were resolved in spring 2012, in spring 2013, as well as in September 2013. The program that started in September 2013 was completed in April 2014. Due to the solid liquidity development in the first half year of 2014, on June 30, 2014, in accordance with the resolution of the general meeting the management board and the supervisory board decided to make full use of the total of 10 % of own shares and to use a maximum amount of € 3.5 million for the buyback of own shares.
At the reporting date December 31, 2014, 318,864 own shares corresponding to almost 9 % were held by Basler AG. These were bought at an average share price of € 18.62. The buyback starting in June 2014 had not been completed on December 31, 2014, and thus had not been fully used until then.
Due to the positive business development in the fiscal year 2014, the management board of Basler AG has decided to propose to this year's general meeting to pay a dividend.
Our dividend strategy provides for a combination of a reliable base dividend, to be paid independently of the company's result and an additional dividend depending on the company's success On this base, the proposal will be made in the general meeting of 2015 to pay a dividend for the fiscal year 2014 of 70 Cents per share consisting of a base dividend of 20 Cents per share and an additional dividend amounting to 50 Cents per share.
Continuous and open communication with all capital market participants is very important to Basler AG. Therefore, we value the direct contact to analysts, investors, and private shareholders. We communicate with institutional investors in the frame of conference calls, individual conversations, and roadshows or at capital market conferences. It is during the general meeting, at smaller conferences, as well as in personal discussions where we inform private investors about the development of the company.
In the elapsed fiscal year, Basler AG participated in three roadshows and five capital market conferences. Due to the increased share price level, many investors sought direct contact with the company. We addressed this interest via conference calls and videoconferences or in the form of company tours.
As a listed family company, in 2014 we concentrated our investor relations work mainly on investors pursuing a long-term strategy focusing on listed family companies like Basler AG which are comfortable with correspondingly limited trade volumes. Due to this clear orientation, the quality of our investors' meetings considerably improved and, along the improving figures, enabled us to gain more new investors for Basler AG in 2014 than in the previous years. After these positive experiences made in the elapsed fiscal year, we will continue this strategy in 2014.
In the previous year, the analysts of Warburg Research and Oddo Seydler Bank AG – formerly Close Brothers Seydler Research AG - regularly prepared studies about Basler AG (previous year: 2). You can find the current recommendations via www.baslerweb.com/share in the Share >> Analyst recommendations section.
In addition to this, we offer comprehensive information in the internet via www.baslerweb.com/Investors, where you can find our quarterly reports, half year reports, and annual financial reports, along with analyst presentations and press releases, as well as the financial calendar for the current year showing all important publication dates and the date of the general meeting (please see also – financial calendar on page 61).
For questions about our company or the Basler share, please contact our investor relations department:
Tel. +49 4102 463 0 Fax +49 4102 463 108 [email protected] www.baslerweb.com/Investors
If you wish to receive information about our company regularly, please contact our investor relations department via www.baslerweb.com/Investors.
ISIN: DE0005102008 Symbol: BSL Prime Standard branch: Industrial Industry group: Advanced Industrial Equipment Admission segment: Prime Standard / Regulated Market Designated sponsor: Close Brothers Seydler AG Number of shares: 3,500,000 Member of the following indices: CDax, Prime All Share, Technology All Share
As regards trade, our share is supported on the capital market by Oddo Seydler AG - formerly Close Brothers Seydler AG (so-called designated sponsoring). Oddo Seydler AG is a leading provider of this service in Germany and regularly earns top rankings by Deutsche Börse.
Shareholder Structure
| 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|
| Market capitalization in € million (as of 12/31), |
123.0 | 93.9 | 45.9 | 46.4 |
| Annual closing price in € (as of 12/31) |
38.66 | 29.00 | 13.79 | 13.48 |
| Year high in € | 43.85 | 31.05 | 14.40 | 14.73 |
| Year low in € | 28.21 | 13.47 | 9.40 | 10.00 |
| Annual development | +35 % | +110 % | +2 % | +16 % |
The management board and the supervisory board declare that in the elapsed fiscal year 2014 Basler AG complied with the recommendations for conduct as amended on May 13, 2013 as well as on June 24, 2014 by the "Government Commission of the German Corporate Governance Code" (hereinafter called "code") with the following exceptions:
Clause 3.8, paragraph 3, of the code sets forth that an appropriate deductible should be stipulated when the company takes out a D&O insurance policy for the supervisory board. The D&O insurance coverage for the management board comprises a deductible according to statutory provisions. However, the insurance policy does not provide for a deductible for the members of the supervisory board. The management board and the supervisory board are convinced that responsible action is a self-evident obligation for all members of the company's executive bodies. Therefore, a deductible for the members of the supervisory board is not necessary.
Clause 4.2.5, Paragraph 3 – Composition and Remuneration (Granted Benefits for the Reporting Year)
Composition and Remuneration Board/ Supervisory Board
Clause 5.3 — Establishment of Committees within the Supervisory Board
The supervisory board does not establish any committees. The supervisory board of Basler AG comprises three persons. This configuration ensures efficient work in all matters of the supervisory board, especially as the generally accepted minimum size for a committee is a membership of three.
For nominations to the general meeting, the supervisory board will also in the future continue to align itself to all necessary legal requirements and will emphasize the candidates' professional and personal qualifications independent of gender. Consideration will also be given to the international activities of the company, to potential conflicts of interest, and to diversity. Basler AG does not state specific pertinent goals in these areas.
With regard to the share ownership, the management board and the supervisory board declare pursuant to clause 6.3: The total share ownership of all members of the management board and the supervisory board exceeds 1 % of the total of shares issued by the company and is as follows:
As of the reporting date, the members of the management board held the following numbers of shares:
As of the reporting date, the members of the supervisory board held the following number of shares:
Shares of the Supervisory Board
Ahrensburg, March 17, 2015
Norbert Basler
Dr. Dietmar Ley CEO
John P. Jennings CCO
Arndt Bake
CMO
Hardy Mehl CFO/COO
Prof. Dr. Eckart Kottkamp Vice Chairman of the Supervisory Board
Chairman of the Supervisory Board
Konrad Ellegast
Supervisory Board
| 1 | Basic Company Information | 13 |
|---|---|---|
| 1.1. _ | Business Model | 13 |
| 1.2 _ | Control System | 13 |
| 1.3 _ | Research and Development | 14 |
| 2 | Economic Report | 15 |
| 2.1 _ | Basic Conditions | 15 |
| 2.2 _ | Business Development | 15 |
| 2.3 _ | Profit Situation | 16 |
| 2.4 _ | Financial Situation | 16 |
| 2.5 _ | Asset Situation | 17 |
| 2.6 _ | Financial and Non-Financial Performance Indicators |
18 |
| 2.7 _ | Overall Statement | 18 |
| 3 | Supplementary Report | 19 |
| 4 | Forecast Report | 19 |
| 5 | Opportunities and Risks Report | 19 |
| 5.1 _ | Internal Organization | 19 |
| 5.2 _ | Finance | 20 |
| 5.3 _ | Procurement Market | 20 |
| 5.4 _ | Sales Market | 20 |
| 5.5 _ | Political and Legal Risks | 21 |
| 5.6 _ | Operating Risks | 21 |
| 5.7 _ | Overall Statement | 21 |
| 6 | Internal Control System and Risk Management System related to the Accounting Process |
22 |
| 7 | Risk Reporting related to the Use of Financial Instruments |
22 |
| 8 | Information Concerning Takeovers (§ 289 and 314 of the German Commercial Code, HGB) |
22 |
| 9 | Declaration Regarding Corporate Governance (§ 314 sec.1 no.8 German Commercial Code, HGB) |
24 |
| 10 | Principles of the Remuneration System | 24 |
| 10.1 _ | Remuneration of the Management Board | 24 |
| 10.1.1 | Own Requirements on the Remuneration System |
24 |
| 10.1.2 | Structure of the Remuneration System (Only Monetary Salary Components) |
24 |
| 10.1.3 | Performance Indicators | 25 |
| 10.1.4 | Targets | 25 |
| 10.1.5 | Bonus | 25 |
| 10.1.6 | Total Remuneration | 25 |
| 10.1.7 | Limits of the Model and Intervention of the Supervisory Board |
26 |
| 10.2 _ | Remuneration of the Supervisory Board | 26 |
Basler AG is based in Ahrensburg near Hamburg (Germany) and develops and manufactures highquality digital cameras for professional users that are mainly used in industrial mass production, medical technology, traffic control, as well as in video surveillance. Basler cameras are recognized on the market for innovation, excellent quality, simple integration, compact housings, and an outstanding price performance ratio. These factors make Basler one of the world's biggest providers of industrial cameras.
In addition to research and development as well as the production of cameras, Basler has a globally operating sales organization. Target customers are national and international manufacturers of investment goods (OEM customers), integrating Basler cameras in their own products. The OEM customers are supported by an own direct sales organization or by regional sales partners (distributors).
Basler AG has 100 % owned subsidiaries in the USA, Singapore, and Taiwan. The subsidiaries are fully consolidated in the consolidated financial statements. Further branches are located in Japan, South Korea, China, Poland, UK, and Finland. The foreign subsidiaries and branches mainly provide sales and service activities. In July 2014, a production facility was opened in the Singapore subsidiary manufacturing cameras for the Asian market.
External factors influencing the business model are the general macroeconomic situation and the demand situation in the central regional markets in Asia, Europe, and North America. Due to Basler's alignment towards industrial goods manufacturers, the economic situation of the machinery and plant construction industry continues to be of particular importance for the business development of the group.
An annually conducted strategy process defining the alignment of the company regarding product portfolio, target markets, sales strategy, technologies, and financial key figures is the basis of the group management. The strategy process concludes with a four-year planning as well as with a budget for the upcoming fiscal year.
Financial and non-financial performance indicators that are essential for the group management are derived from both planning perspectives and summarized in a balanced score card system (BSC). The main BSC
key figures include sales, profit (EBT), cash flow, profitability, employee satisfaction, and the awareness level of the brand. In 2014, the ROCE (return on capital employed) was implemented as a further BSC key figure. The most important performance indicators are sales and EBT. Further key figures of the corporate management are mentioned in the economic report. The BSC figures are updated once a month and discussed within the management team. This enables an early recognition of potential deviations from the targets and the initiation of appropriate countermeasures.
In order to ensure a high quality of the manufactured products and of the corporate processes applied, Basler has implemented a quality management system (QM system). In the course of the financial year, internal audits are conducted to find out whether the processes within the operational practice are compatible with the process descriptions of the QM system. Once a year, an external audit is conducted in order to verify whether the QM system is applied according to the provisions of the DIN ISO 9000/2008 and DIN ISO 9000/2000
As a technology company, Basler relies on an early recognition of technological trends and their fast integration in new products. Since camera technology develops fast and Basler AG pursues a sustainable growth strategy, Basler's average annual investment in research and development (R&D) is between 13 and 15 % of sales. R&D activities are structured as follows:
The target of the predevelopment is the examination of technologies that seem to be reasonable for the integration in future products. This is how we ensure to master new technologies prior to platform or product developments and to have sufficiently analyzed possible risks.
In this way, product developments that are based on these technologies can be conducted closely to the planning. We demonstrate first interim results to technology-orientated customers in the course of the year at trade fairs in order to get first feedbacks from the market.
In the platform development, in the elapsed fiscal year, we laid the foundations for a low price and very compact camera family called Basler dart. This product was presented for the first time at the VISION fair in November and will be transferred into series production in the first quarter of 2015. With these products based on the dart product platform, we consistently invest in the expansion of our product portfolio.
In the elapsed fiscal year, we also continued to improve our innovative USB 3.0 interface technology and significantly expanded our product portfolio based on this interface technology. We see great potential in this and therefore will continue to equip a large part of our product portfolio with a USB 3.0 interface in the future. At the same time, the camera portfolio with GigE interface that is already established in the market was continuously expanded in order to underpin our present leading position in the market. Within this context, new CMOS sensors were integrated in the existing ace product platform strengthening our mainstream product portfolio.
At the end of 2014, we launched the new high end Basler beat camera series on to the market. The Basler beat camera combines a high frame rate with a high resolution of 12 megapixels.
In 2014, besides investments in primary camera development, investments were specifically made in the development of complementary accessories. By offering accessory products we intend to use our superior market access even better and, furthermore, to differentiate even better from our competitors. In view of this, in the past year we launched a series of optimally priced lenses to the mainstream market. The unique price performance ratio due to the combination of Basler ace cameras and Basler Lenses met with an excellent response from the market.
In addition to the development of new products, we invest about one fifth of the R&D budget in the constant updating of our products in order to ensure the manufacturability for a period of three to ten years and to continuously optimize the manufacturing costs.
Based on total sales, the expenses for research and development amounted to 14 % (previous year: 14 %). Compared to the previous year, overall, the costs (personnel expenses, depreciations, other operating expenses, as well as directly attributable overhead) increased from € 9.1 million € to € 11.0 million in 2014.
The expenses include third-party services in the amount of € 815 thousand (previous year: € 613 thousand). The capitalized investments in own developments amounted to € 5.9 million (previous
year: € 4.3 million) which corresponds to an increase of 37 % compared to 2013. The amount of depreciations for own developments amounted to € 3.2 million (previous year: € 3.4 million). As of December 31, 2014, the number of full-time equivalent employees in research and development was 94 (previous year: 84).
At the end of fiscal year 2014, Basler AG was the owner of 25 patents and patent applications, of which 14 are granted and 11 are in the process of application. Furthermore, Basler is owner of one utility model, 28 trade names, and three registered designs. Another 46 trade names are in the process of application.
In 2014, the global economy developed below original expectations. Despite decreased raw material prices and low interest rates the upswing was moderate. The global economic growth amounted to 2.4 % and did not achieve the original forecast of 2.8 %. Whereas the economic growth rates in the USA (2.3 %) and China - as the large driver - (7.4 %) show a continuous upswing, the European economy grew by only 1.2 % also due to the ongoing euro crisis. Whereas the economy in Germany grew in the first half year, it came to a standstill in the second half year and companies put their investments on hold. In the elapsed fiscal year, overall, the economic performance in Germany only increased by 1.5 % (source: Berenberg, Global Outlook).
This development also affected the machinery and plant construction industry that is relevant to us. Thus, in July the German Engineering Federation (Verband Deutscher Maschinen- und Anlagenbau, VDMA) decreased its growth forecast from initially 3 % to 1 %. In the fiscal year 2014, export growth to Southeast Asia increased by 10 %, those to European partner countries rose by 6 % and to North America (particularly USA) by 6 %. The exports to Australia and Latin America showed a negative development. Geopolitical tensions in Eastern Europe lead to slumps in export to the Ukraine and Russia. Despite these negative impacts the number of employees in the German mechanical engineering sector increased in 2014 once again to more than 1 million (source: VDMA Mechanical Engineering Development Dec. 2014).
The German image processing industry developed better than the entire sector of machinery and plant construction. Compared to the previous year, the sales development of components of the German image processing industry was positive and increased by 8 %. (source: VDMA IBV, quarterly statistic Q4). In comparison, Basler developed considerably better than the market and generated sales growth of approximately 22 %.
The above average performance of the elapsed fiscal year shows that we make good progress in the implementation of our strategy. In absolute terms, sales developed from € 65.1 million in 2013 to the new record value of € 79.2 million in fiscal year 2014 (+ 22 %) and thus resulted in a record result before taxes amounting to € 11.1 million (+ 42 %).
Due to the consistent alignment of the camera business towards high-volume areas (mainstream and entry level) we were able to increase production from 130,000 units in the previous year to 179,000 units.
As in the previous year, the main driver of growth was our ace compact camera family that showed an increase in sales by 46 %. In particular, the ace models with Gigabit Ethernet interface largely contributed to the sales growth. The ace models with USB 3.0 interface that were launched on to the market in 2013 were also successfully distributed. For these camera models we expect a continuously rising demand in the future since the USB 3.0 technology is now well established in the market. We also successfully increased sales from the high speed ace models equipped with camera link interfaces that are positioned at higher price levels. As in 2014, the ace product family with currently more than 100 different models was again the most successful camera family.
With our product launch of the dart camera series in the previous year, we laid the foundations for the planned expansion into the entry level market. Even with minimal early stage sales, we receive very positive market response. We also were very successful with the development and sales of additional components as objectives and cables (accessories). We are confident that the expansion of the value-added chain will lead to positive impulses and synergies in sales. Sales revenues from accessories exceeded expectations.
Also the sales from the pilot camera family (GigE cameras with CCD sensors) exceeded the planned values.
With regard to the regional business allocation, in the elapsed fiscal year we reached the largest sales growth of 33 % in the EMEA countries. Sales revenues in America increased by 20 %, those in Asia by 17 %, and in Germany we recorded a growth of 15 %. However, in this regional allocation it must be taken into consideration that a considerable part of
the deliveries in the EMEA region were induced by customer projects in Asia. Thus, to a large proportion, the Asia region is also responsible for the strong sales growth in the EMEA region. We owe this to our progress made in market penetration, the continuous investment in new sales employees, the expansion of the distribution network, and the adding of new sales partners. Furthermore, we continuously expand our subsidiaries and broaden our representative offices in other European countries.
According to additional investments (especially personnel), operating expenses increased from € 25.7 million in the previous year to € 30.8 million in 2014. The major part of the cost increase relates to the implementation of our medium-term planning providing for sales revenues amounting to € 120 million at a minimum pre-tax return rate of 10 %. All functional areas actively work on the implementation of the strategy, meet the requirements relative to the organizational structures and procedures, and acquire the necessary know how in order to achieve this target. Consequently, in the elapsed fiscal year, several organizational projects were carried out and processed in the expenses of the financial year 2014. The most essential project was the production start in our Singapore subsidiary. We are confident to gain further competitive advantages in the future by offering a selected portfolio of locally manufactured cameras for the Asian region. Furthermore, we prepare at an early stage for a more mature market phase with stronger Asian competitors.
Compared to the previous year, the annual surplus increased by € 2.6 million and amounted to € 8.2 million (previous year: € 5.6 million). The pre-tax margin was 14 % (previous year: 12 %). The reason for the better result in the elapsed fiscal year were sales revenues above plan, higher gross profit margins, and a slower than planned increase of the operational costs. The sales revenues and gross profits were positively influenced by unplanned large-scale projects in the Asian electrical industry.
Compared to the previous year, the return on equity improved by 6.6 percentage points and is 25.2 % at the end of the fiscal year.
| in € million | 2014 | 2013 | Change | in % |
|---|---|---|---|---|
| Sales revenues | 79.2 | 65.1 | 14.1 | 22 % |
| Cost of service performed | -38.2 | -32.6 | -5.6 | 17 % |
| Gross Results | 41.0 | 32.5 | 8.5 | 26 % |
| Other internal income | 2.3 | 1.7 | 0.6 | 35 % |
| Expenses | -30.8 | -25.7 | -5.1 | 20 % |
|---|---|---|---|---|
| Operative profit | 12.5 | 8.5 | 4.0 | 47 % |
| Financial result | -1.4 | -0.7 | -0.7 | 100 % |
| Earnings before profit tax | 11.1 | 7.8 | 3.3 | 42 % |
| Taxes | -2.9 | -2.2 | -0.7 | 32 % |
| Group's annual surplus | 8.2 | 5.6 | 2.6 | 46 % |
Compared to the previous year, the sales increased by € 14.1 million (+ 22 %) and amounted to € 79.2 million at the end of the fiscal year. Along with the sales growth, the costs of service performed increased. Their increase of 17 %, however, was under-proportionate. The other operational costs climbed by 20 % to € 30.8 million. The main drivers for this were higher personnel costs due to an increased number of employees from 352 in the previous year to 405 in 2014, as well as due to annual increases, performance related variable remunerations, and recruiting costs. Also the other expenses increased, particularly expenses for consultancy, marketing, and travelling.
In comparison to the previous year, the financial result deteriorated by € 0.7 million. This was mainly due to slightly increased interest payments due to additional loan capital and the negative market valuation of an interest rate swap of € 0.2 million.
Due to existing loss carry forwards at Basler AG, the actual tax burden for the financial year was € 1.5 million, corresponding to a tax ratio of approximately 13.5 %. The deferred tax expenses amounted to € 1.4 million. The tax ratio including deferred taxes amounted to 26.4 %.
Compared to the previous year, the annual surplus increased by 46 % and amounted to € 8.2 million (previous year: € 5.6 million).
The order backlog as of the reporting date amounted to € 12.6 million (previous year: € 9.2 million).
The liquidity management of the group is aimed at meeting the demand for capital such that an appropriate balance is achieved between maturity risk, rating of the creditors, the cost of equity and the cost of debt. At the end of the financial year, 96 % of the long-term assets were covered by equity.
In the financial year, a positive cash flow of € 16.0 million (previous year: € 12.1 million) was generated from current business activity. In 2014, the cash flow from investing activities amounted to € -8.6 million (previous year: € -6.5 million). In the course of the financial year 2014, the free cash flow calculated as the sum of cash flows from operational activity and investment reached a value of € 7.4 million (previous year: € 5.6 million).
BACK TO CONTENT MANAGEMENT REPORT
On the financing side, liabilities to banks in an amount of € 0.4 million were paid off and new loans from the ERP Innovation Program of the Kreditanstalt für Wiederaufbau (KFW) in the amount of € 2.7 million were taken out. At the balance sheet date, unused credit lines with banks amounted to € 2.4 million.
Considering dividend payments and the buyback of own shares, cash flow from financing activities amounted to € -4.2 million (previous year: € -4.2 million).
At the end of the financial year, liquid assets amounted to € 12.8 million. This means an increase of freely available liquidity by € 3.1 million, compared to the previous year. The liquidity of the group was secure at all times.
| in € million | 2014 | 2013 | Change | in % |
|---|---|---|---|---|
| Intangible assets | 17.4 | 14.5 | 2.9 | 20 % |
| Tangible assets | 5.3 | 4.3 | 1.0 | 23 % |
| Buildings and land in finance | ||||
| lease | 16.0 | 16.7 | -0.7 | -4 % |
| Deferred tax claims | 0.1 | 0.1 | 0.0 | 0 % |
| Long-term assets | 38.8 | 35.6 | 3.2 | 9 % |
| Inventories | 12.5 | 9.6 | 2.9 | 30 % |
| Receivables from deliveries | ||||
| and services | 7.0 | 6.9 | 0.1 | 1 % |
| Other short-term assets | 1.2 | 1.5 | -0.3 | -20 % |
| Cash in bank and cash in | ||||
| hand | 12.8 | 9.7 | 3.1 | 32 % |
| Short-term assets | 33.5 | 27.7 | 5.8 | 21 % |
| Total assets | 72.3 | 63.3 | 9.0 | 14 % |
| Equity | 37.3 | 32.5 | 4.8 | 15 % |
| Long-term interest bearing bank liabilities |
7.4 | 5.6 | 1.8 | 32 % |
| Liabilities from finance lease | 11.5 | 12.9 | -1.4 | -11 % |
| Other long-term liabilities | 3.4 | 1.7 | 1.7 | 100 % |
| Long-term liabilities | 22.3 | 20.2 | 2.1 | 10 % |
| Current financial debt | 2.3 | 1.5 | 0.8 | 53 % |
| Short-term provisions | 3.9 | 3.2 | 0.7 | 22 % |
| Liabilities from finance lease | 2.2 | 2.1 | 0.1 | 5 % |
| Current other financial debt | 4.3 | 3.8 | 0.5 | 13 % |
| Current financial debt | 12.7 | 10.6 | 2.1 | 20 % |
| Total liabilities | 72.3 | 63.3 | 9.0 | 14 % |
In the elapsed fiscal year, investments in intangible assets increased to € 6.5 million (previous year: € 4.7 million). These mainly included own
developments and services purchased for research and development. Investments in tangible assets amounted to € 2.2 million (previous year: € 1.8 million), much of which was attributable to the opening of a new production facility in the Singapore subsidiary and the resultant investments in machines. Buildings and land in finance lease decreased by € 0.7 thousand due to scheduled depreciations. In comparison to the previous year, long-term assets increased by 9 %.
Inventories increased by € 2.9 million to € 12.5 million, compared to the previous year. This increase is due to the production start in Asia and to increased incoming orders at the end of the financial year and the resultant material procurements.
Receivables from deliveries and services slightly increased by 1 %. Cash in bank and cash in hand showed a balance that was € 3.1 million higher than in the previous year. Compared to 2013, current assets increased by 21 %. In comparison to the previous year, the total assets increased by 14 % to € 72.3 million.
In comparison to the previous year, equity increased by € 4.8 million to € 37.3 million. The increase due to the annual surplus of € 8.2 million is settled against the purchase of own shares with an equivalent value of € 2.1 million and the distribution of a dividend of € 1.5 million.
The subscribed capital – consisting of 3.5 million non-par bearer shares - amounts unchanged to € 3.5 million. As a deduction of this, the par value of own shares in an amount of € 0.32 million (previous year: € 0.26 million) is shown. In comparison to the previous year, the retained earnings including the consolidated result increased by € 4.5 million to € 33.9 million. As of the reporting date, a hidden reserve amounting to € 12.3 million resulted from the volume of own shares.
The long-term interest bearing bank liabilities increased by € 1.7 million due to new loans taken out from existing commitments from KfW subsidies. As of the balance sheet date, cash values of the lease liabilities amount to € 13.7 million (previous year: € 15.0 million). € 11.5 million of this (previous year: € 12.9 million) were long-term liabilities.
The current liabilities increased by € 2.1 million which is particularly due to the increase of short-term provisions for variable compensation, and a planned employee participation in the success of the financial year.
Off balance sheet liabilities mainly in terms of order commitments amounted to € 9.1 million (previous year: € 5.7 million) as of the balance sheet date. There have been no premature payment obligations in the elapsed fiscal year.
In addition to the mentioned figures, further performance indicators are measured and are used for managing the company.
Inter alia, we measure profitability on the basis of the profitability per employee (annual average number of employees in relation to the after tax result). In the fiscal year 2014, it was increased by 28 % to € 20.3 thousand, compared to the previous year (previous year: € 15.9 thousand). The gross profit margin increased from 49.9 % in the previous year to 51.8 %. Furthermore, we use the ROCE (return on capital employed) for managing the company.
To provide comparability, we point out that the capital employed also includes liabilities from finance lease for our building in Ahrensburg. At the end of the financial year, the ROCE amounted to 25.7 % (previous year: 19.0 %).
The working capital (without liquid assets) amounted to € 17.1 million (previous year: € 13.7 million), at the end of the fiscal year. The increase mainly results from the increase of raw materials, auxiliary materials, and operating materials that in turn was initiated by high incoming orders with resultant material procurement at the year end.
The satisfaction of our employees is essential for the success of our company. Therefore, we provide a flexible and family friendly working environment, reconciling the demands of work and family life. In addition to various part-time models and flexible working time, we offer our employees child care services for emergencies during special working hours, and during school holidays. In 2013, we set up a separate room in Ahrensburg for child care services. In 2011, Basler AG was audited by the Hertie Foundation within the "Work and Family" initiative and certified as "family-friendly company". We are pleased that the high level of the employees' satisfaction again increased slightly in 2014, due to our various activities. Also the employee fluctuation rate is again very low at 0.9 % (previous year: 1.5 %).
In 2014, the average number of employees of the group was 405 (previous year: 352). Converted to the number of equivalents of full-time employment the average number of employees was 374 (previous year: 325). Please find any further details concerning the employee structure in the notes.
We give special attention to our own in-house training of young people, in order to find suitable junior staff, but also in order to confirm our regional social commitment. The training ratio in the elapsed fiscal year amounted to 6.3 % (previous year: 7.6 %).
Another key aspect of our personnel policy is the continuous development of our employees through internal and external seminars, courses, on the job trainings, or self-study. Once a year, development reviews with the employees are conducted in which employee and manager agree upon development objectives. The progress is measured once a year and the implementation level of the agreed measures is part of the balanced score card. The costs for basic and further training increased from € 342 thousand in 2013 to € 545 thousand in 2014.
Customer satisfaction surveys are conducted every two years. For many years, measuring criterion for the customer satisfaction has been the willingness to recommend Basler. The result of the latest survey was very satisfactory.
As in the previous years, we are very satisfied with the course of business in the reporting period and look back on a successful fiscal year 2014, in which we exceeded our planning considerably. Sales revenues amounting to € 79.2 million were above the corridor of € 70 million to € 74 million forecasted at the beginning of the fiscal year. The pre-tax margin of 14 % again exceeded the previous year's figure of 12 % and also our strategic benchmark of 10 %. In particular, we succeeded in growing clearly above market. This was possible due to the focusing on high-volume areas of the industrial camera market. With a broader product portfolio and new innovative products we reach more customers and applications than just a few years ago. Gradually we expand our strong market position by adding new market fields to our strength factory applications, like medical, logistics, or retail. Due to the continuous extension of the sales organization and the expansion in further regions we have a better market access than in the past. Because of the results of the elapsed fiscal year we feel even more confident in our strategic direction which allows us to look to the future with confidence.
It is our goal to let the shareholders of Basler AG participate in the success and, at the same time, maintain sufficient liquidity in order to continue the growth course. In 2011, we adopted a dividend policy providing for a distribution of 30 % of the net results in form of a reliable base dividend in combination with an optional additional dividend depending on the company's performance. For fiscal year 2013 a dividend of 47 Cents per share was paid, corresponding to a distribution ratio of 27 %. Since in 2014 we generated a result amounting to € 8.2 million (previous year: € 5.6 million) at an after tax return of 10.4 % (previous year: 8.6 %) which is the best result in the company's
BACK TO CONTENT MANAGEMENT REPORT
history, we will propose to the this year's shareholders' meeting in May 2015 to pay a dividend in the amount of 70 Cents per share (corresponds to € 2.2 million). Should the shareholders' meeting vote for the proposal, approximately 27 % of the annual surplus would be distributed to the shareholders. Since the dividend originates from the tax account, it is exempt from the withholding tax and the solidarity surcharge amounting to 26.375 % in total.
There are no relevant events impacting the annual financial statement to report after the reporting date.
The German Engineering Federation (Verband Deutscher Maschinen- und Anlagenbau, VDMA) expects the global engineering industry to grow by approximately 2 % (source: VDMA, Economic Report December 2014). On the one hand decreased raw material prices and exchange rates support the international business environment, but on the other hand unsolved conflicts in Russia and the Ukraine, as well as economic uncertainties in China dim prospects, thus for the German engineering industry a growth of about 2 % is forecasted. Compared to 2014, the Association of Manufacturers of Machinery and Equipment for the Semiconductor Industry (SEMI) assumes an increase in sales figures of 15.2 % for 2015 (source: Market Study SEMI).
In view of our again broadened product portfolio, our enlarged sales organization, as well as the development of new sales regions and vertical markets, for 2015 we once again expect the continuation of our doubledigit percentage sales growth in the camera business. Therefore, we plan for group sales revenues within a corridor of approximately € 81 to 84 million. Again, the main driver of growth will be increasing revenues with Gigabit Ethernet cameras. In addition to this, for the coming year, we expect a sustainable demand for USB 3.0 cameras. Due to the positive initial feedback, we assume a successful launch of the new dart camera series and our accessories. In 2015, we will gain new customers in the entry level market due to the unique price performance ratio and the compact design of this camera series, and thus will continue to consistently implement our volume strategy. In pursuit of our midterm goal to exceed the sales threshold of € 120 million in 2018, for the time being, we give priority to profitable sales growth versus an increase of the pretax return and, analogous to the previous years, we plan with a pre-tax return within a corridor of 9 to 10 %. Any further profits will be reinvested - on a priority basis for additional personnel in the functional areas
of sales, marketing, and research and development - in order to continue a sustainable and solid growth strategy within the coming years.
The growth strategy pursued by Basler for market leadership for industrial cameras in the coming years with group's sales above € 120 million, can only be implemented if opportunities are determinedly used and, at the same time, measures are taken in order to minimize threatening risks in an appropriate way.
The opportunity and risk management system at Basler includes:
Essential parts of the opportunities and risks management system are the risk strategy, the risk atlas, the risk matrix, and the risk coping. In 2013, a risk strategy was adopted and software for a standardized collection and measurement of risks was implemented. In the elapsed fiscal year, the risk inventory was conducted. Here, risks were identified and quantified according to occurrence probability and monetary amounts and measures were defined in order to minimize the risk. The number of identified risks has been compared to the defined risk cover amount (available capital for covering risks). The risk capacity of the group was not exceeded. These measure will be flanked by the internal control system (IKS), the internal quality management system and finally by the annual external audit in the frame of the DIN ISO 9000/2000 and DIN ISO 9000/2008.
In this category we deal with the business model, organizational structures and processes, IT and communications, information procurement, and personnel.
An enduring weakening of growth of the camera market is not foreseeable today. Forecasts issued by federations and market research institutes assume persistent growth in the single-digit percentage range for classical applications in industrial mass production and growth in the double-digit percentage range for newer sales markets like e.g. traffic technology, logistics, or medical technology. Since we continuously expand the product portfolio and push the diversification of possible applications, we consider the business model to be scalable and future-proof.
The company is organized by functions and the foreign subsidiaries directly report to the management board. With a flat hierarchy and short decision making processes, we want to maintain the flexibility and the exchange among the employees even with increasing growth. As a technology company, Basler is heavily depending on the knowledge of its employees. Therefore, we took measures - as already mentioned under 2.6 - for staff retention and further development, and actively work on maintaining and creating a company culture that is fostering innovation.
One challenge within the coming years will be to shape the process of the increasing number of employees in a creative and effective way. That is why we continuously work on increasing the level of attractiveness of the Basler employer brand and develop concepts for the integration of new employees (please see also 2.2).
Regarding IT and information procurement we refer to point 6 of the management report.
The credit default risk is countered by a credit management system and a professional receivables management, in which larger customers are continually subject to credit checks and their credit limits are stored in the system according to the rating. In case of an exceeding of a credit limit, the specific situation is checked and, if necessary, the delivery of goods will be stopped. Outstanding debts are subject to a threestage default action. If the customer fails settling an outstanding invoice that has reached dunning level two, in general no further deliveries will be made. Default risks are countered through individual and general valuation allowances. In total, the average default ratio of 0.5 % in 2014 is again low in terms of the receivables from deliveries and services. In the fiscal year 2014, individual value adjustments and write-offs on accounts receivables were posted in the amount of € 44 thousand (previous year: € 18 thousand).
Liquidity is controlled in collaboration between accounting, controlling, sales, and strategic purchasing. Based on the four-year planning and the budget of the current fiscal year, a liquidity planning is made which is updated regularly and part of the monthly reporting. On that basis, the liquidity requirements can be identified in time and be prematurely financed with banks.
In the past years, the company had a positive cash flow from operating activities, from which investments can be financed in addition to financial liabilities and, moreover, that resulted in a net liquidity at the reporting date amounting to € 4.5 million. The total of cash in hand, positive free cash flow, and freely available lines with credit institutions cover the future
financial needs of Basler AG within a foreseeable period. In addition to this, as a technology company with a considerable part of investments in research and development and a positive rating, we get low interest KFW loans.
Due to the positive profit situation and the company's strong equity, we currently do not see a liquidity risk.
We take interest and foreign currency risks within a very limited scope only. As far as possible, sales revenues in foreign currencies - particularly in USD and JPY - are used for purchasing material in these currencies. Remaining surpluses are partially secured via forward exchange contracts or foreign exchange options. We use currency derivatives exclusively as hedging instruments.
In principle, there is a risk of a certain dependence on suppliers of technological components. On the suppliers' side, we reduce the risk by establishing long-term business relationships and regular supplier audits, and by permanently observing the procurement markets. As far as technically possible and economically useful, we strive to build up a second source. Furthermore, we implemented processes and systems in order to ensure the short-term availability and the adherence to delivery dates of components.
Due to its broad portfolio mix of industries and customers, the volatility of our camera business is low. Due to our focusing on the high-volume mainstream and entry level segments, the share of sales with customers outside the factory continuously increases, and thus improves the sales risk structure, and increases the stability of our business model. Although broadly diversified activities also experience declines in sales in times of economic crisis, in general, they are less strongly affected than businesses depending on cyclical individual industries.
There are periodic fluctuations in demand in individual target markets. This applies in particular to capital goods markets in the semiconductor-, electronics- and LCD industry. Global economic downswings affect the camera market in so far as they are accompanied by decreasing investments in equipment. For 2015, we assume unchanged market risks compared to 2014. Of particular importance are risks related to a possible flaring up of the euro crisis, a further geopolitical escalation between the Ukraine and Russia, or strong turbulences in the exchange markets. Despite the risk of a macroeconomic weakening in China, in total we assume a positive development of our business in China.
BACK TO CONTENT MANAGEMENT REPORT
The intensity of competition in the industrial camera market continued to be high in the year just ended. In our view, we have a lead on our competitors with regard to the product portfolio and the market position. With our volume strategy, our target is to gain market shares in existing target markets and to develop new applications with considerable volumes faster than the competition. In order to achieve this goal, we continuously increase the expenses for sales, research and development, and production and especially for marketing. Furthermore, we pursue the strategy to gradually increase our value creation in Asia and the USA and develop from a German company with an international sales organization to a global company that is moving even closer to its customers. If this strategy can successfully be implemented, Basler will strengthen its market position relative to the competition.
We counter the risk of market price and margin erosion, by striving to be the fast mover in the market with innovative products and, at the same time, by permanently optimizing their manufacturing costs. Thus, a lean product design, the use of platform architectures as well as lean manufacturing are critical success factors for our company.
Given the current shareholder structure, a hostile takeover of Basler AG can almost be excluded. The shareholder structure is nonetheless constantly checked for changes. Furthermore, in the elapsed fiscal year, Basler AG increased its number of own shares from 261,816 shares as of December 31, 2013, to 318,864 shares as of December 31, 2014.
Due to the regional diversification of our camera business in almost 60 countries of which 20 countries belong to the OECD, we consider the risk of political events with catastrophic effects on our business as manageable.
We face legal risks by continuously improving the know-how of our legal department involving it in our contract negotiations and change processes. Additionally, in special cases, we consult external experts for legal and tax advice. In the elapsed fiscal year, we implemented a new contract management system in order to be able to professionally administrate existing contracts. Within the context of the risk management system and sensitive information we also deal with the subject "Business damage due to employees of the company". There are no indications for criminal activities or gross negligence.
With regard to data protection and safety of data we refer to paragraph 6 of the report.
Another essential success factor is an on time and high quality product development. The implemented processes and planning instruments are continuously reviewed and adjusted to the requirements so that development processes can be concluded on schedule and according to budget.
Our production corresponds to modern standards and is organizationally oriented to manage variations of incoming orders, and to be able to implement an appropriate capacity utilization of employees and machines.
The quality of our products is monitored in the framework of an integrated quality management system. This system includes the certification according to DIN ISO 9000/2000 and DIN ISO 9000/2008 and the annual supervision by external auditors. This is supplemented by internal audits.
The development and maintenance of the Basler brand is an integral part of the product policy. Name and logo of Basler are registered and protected brands.
As manufacturer of industrial cameras we assess the corporate strategy risk of Basler to be low. This assessment is based on the fact that superseding technologies for cameras are not in sight and digital viewing becomes increasingly important in the industry as well as in all other areas of life. Furthermore, the trade associations for the global camera market expect continuous growth in the coming years. Finally, in the medium term, banks and economic research institutes mainly assume the global economic development to be stable to slightly positive.
Due to the fact that Basler continuously aligns its activities regarding new products and the development of new markets and application fields and thus continuously broadens its sales opportunities, we consider the risk of a below average development of the company in comparison to the camera market to be manageable. By broadening our target markets, the already low dependences on single vertical markets or customers decrease step by step.
We annually review our business model and the multi-year planning. The achievement of quantitative and qualitative goals for the respective fiscal year is monitored on a monthly basis in a balanced score card system and discussed by the management team.
Insofar, in the absence of macroeconomic crises, we assume that we will be able to achieve the sales threshold of € 120 million with a pre-tax return margin (EBT margin) of at least 10 % in the medium term.
There were no significant events outside of ordinary business operations that are not described in the management report.
The management board of Basler AG is responsible for the preparation and accuracy of the consolidated financial statements as well as for the consolidated management report. This is guaranteed by including the accounting processes of Basler AG in the quality management system which is valid for the entire group. The processes are on principle designed in accord with the "four-eyes" principle and a strict separation of functions. They are supported by the group-wide SAP system that includes a firm authorization concept where all individual financial statements of the Basler group are prepared in accordance with group-wide standards. If included companies prepare individual financial statements according to other accounting standards, the group-wide standards for commercial financial statements II (IFRS standards) apply, which are processed centrally in group accounting.
The accounting principles as well as controls to monitor process and data quality for an automated preparation of financial statements are stored in this system.
The closing processes are almost completely automated wherever possible and are governed by appropriate computer based workflows. The completeness and correctness of accounting data are regularly reviewed by sampling inspections, and plausibility checks, by manual control supported by the software used.
Within its activity the supervisory board of Basler AG regularly addresses key aspects of accounting, risk management, as well as audit assignments and key audit areas.
Due to Basler's high export rate, the majority of the payments are made in foreign currencies. Due to sales revenues minus material purchases and other expenses in the respective foreign currency, payment surpluses in USD and JPY occur. Foreign currency balances are always exchanged into Euro. Surpluses in foreign currencies that possibly evolve in the future are hedged using forward exchange contracts the maturity of which in general does not exceed twelve months. Thus, currency risks from fluctuations of the exchange rate are minimized.
In order to hedge long-term sales revenues against exchange rate fluctuations, occasionally currency option transactions are concluded. Spot exchange
transactions, forward currency transactions and currency option transactions are not used for speculative purposes, but are used to minimize risks of foreign currencies. As of the reporting date, forward currency transactions in USD amounting to 5 million (previous year: none) and forward currency transactions in JPY amounting to 450 million (previous year: none) existed. As of the balance sheet date, there were no forward exchange dealings. The creation of valuation units was waived and forward currency transactions are balanced at fair value.
In 2011, Basler AG concluded a payer swap intended to serve as hedge for a planned company acquisition. Since the transaction did not take place, the evaluation unit was dissolved in fiscal year 2012 and since then the swap has been balanced at its market value. As of December 31, 2014, the market value amounted to € -1.3 million. In fiscal year 2014, expenses of € 224 thousand were booked due to the market valuation and the continuously decreasing interest rate level.
Basler exclusively concludes derivative transactions with its principal banks. We consider the risk of a default of the counterparty to be very low.
From January 1, 2011, until December 31, 2013, the management board of Basler AG consisted of three members. With effect from January 1, 2014, Hardy Mehl was appointed as fourth member to the management board and the responsibilities were newly defined. Dr. Dietmar Ley is responsible for research and development as well as personnel and organizational development, John P. Jennings is responsible for sales, market communications, and the subsidiaries, Arndt Bake is responsible for marketing and new business, and Hardy Mehl is responsible for production, purchasing and logistics, finance, legal and investor relations.
The Articles of Incorporation of Basler AG include the following provisions regarding appointment and dismissal of members of the management board:
"The appointment of the members of the management board, the revocation of their appointment, and the conclusion, modification, and termination of employment contracts with the members of the management board is effected by the supervisory board. The same applies for the appointment of a member of the management board as chairman and for other members of the management board as deputy chairmen."
BACK TO CONTENT MANAGEMENT REPORT
The Articles of Incorporation of Basler AG can only be changed by the shareholders' meeting and only by three quarters of the share capital represented at the time of passing of the resolution.
The share capital of Basler AG amounting to € 3.5 million is divided into 3.5 million of no-par-value bearer shares.
Mr. Norbert Basler, Großhansdorf, has informed the management board of Basler AG that he owns 1.816.891 million shares and therewith commands 51.9 % of the voting rights.
The authorization of the management board as regards the issue or buyback of own shares is regulated in the Articles of Incorporation as follows:
"The management board is authorized to increase the company's capital stock once or several times up to a total of € 1,750,000 by May 30, 2017 with the supervisory board's approval by the issuing of up to 1,750,000 new bearer stock certificates against cash contributions and/or contributions in kind. In doing so, shareholders are entitled to subscription rights. However, the management board is authorized, subject to approval by the supervisory board, to exclude subscription rights of the shareholders for fractional amounts. Furthermore, with the supervisory board's approval, the management board may exclude the shareholders' subscription rights in order to be able to offer the new shares of the company to third parties against subscription in kind for the purpose of acquiring companies or participating in companies or claims against the company or affiliated companies. The exclusion of the subscription right by the management board is permissible with the supervisory board's approval, even if the increase in capital against cash subscription does not exceed 10 % of the capital stock of the amount of € 3,500,000.00 and the issue amount does not fall considerably short of the officially reported price of the already quoted stock of similar funding at the time of ultimately determining the issue price (§ 203 Sec. 1 sentence 1 in connection with § 186 Sec. 3 sentence 4 German Stock Corporation Act (AktG)). The market price is the arithmetic average of the closing prices of the company stock in electronic trading at the Frankfurt Stock Exchange (XETRA trade) or a successor system during the last ten trading days prior to exercising the authorization.
With the supervisory board's approval, the management board is authorized to determine the details of the increase in capital stock and the conditions of issuing shares, in particular in determining the issue price."
The management board is in addition authorized to buy own shares not exceeding 10 % of the current share capital until June 30, 2019. The authorization can be exercised partially or fully, once or several times, for one or several purposes. It may, however, also be exercised by companies that are dependent or majority owned by the corporation or on their behalf by third parties. According to the corporation's choice, the acquisition may be effected (i) via the stock market or (ii) via a public purchase bid directed to all shareholders of the company or a public invitation directed to all shareholders of the company to make sales offers or (iii) via a public offer directed to all shareholders to exchange shares for shares of a company listed within the meaning of § 3 Sec. 2 German Stock Corporation Act (AktG) or by a public invitation to tender such an offer.
With the supervisory board's approval, the management board is authorized to use the shares thus obtained and previously obtained shares for all legally permissible purposes.
With the supervisory board's approval, the management board is in addition authorized to use the shares obtained according to this authorization and the previously obtained own shares to grant shares to other employees of the corporation, to members of the executive board and to employees of companies that are affiliated with the corporation within the meaning of §§ 15 ff. German Stock Corporation Act (AktG) as far as these persons are entitled to their purchase based on employee share ownership plans.
With the supervisory board's approval, the management board is in addition authorized to use the shares obtained according to this authorization and the previously obtained own shares to fulfil conversion rights, options, and conversion obligations, respectively, due to convertible bonds, partial debentures, and bonds with warrants implying conversion rights, options, and conversion obligations, respectively, issued by the company or by companies that are dependent or majority owned by the corporation.
With the supervisory board's approval, the management board is in addition authorized to withdraw own shares without further decision by the shareholders' meeting.
The shareholders' subscription rights for own shares are excluded as far as these shares are used in accord with the above authorizations.
The management board will inform the shareholders' meeting about each acquisition of own shares and their use. Further issues according to § 315 Sec. 4 German Code of Commercial Law do not exist.
You can find on our website the declaration of compliance with the Corporate Governance Code, explanations regarding our practices of corporate governance, and a description of the working practices of the management board and the supervisory board (www.baslerweb.com). Click Investors → Corporate Governance.
The following statements regarding the remuneration of the bodies of Basler AG are statements for the notes as stipulated by the German Commercial Code and statements due to provisions by the Corporate Governance Code.
The remuneration of the members of the management board consists of diverse components. Based on their employment contracts, the members of the management board are entitled to a fixed and an annually variable remuneration as well as to fringe benefits. The structure of the remuneration system for the management board and the adequacy of remuneration are regularly checked and defined by the supervisory board.
According to market standards, the company grants all members of the management board additional benefits provided by their executive contracts. They are partly considered as non-cash benefits and are taxed accordingly. This includes mainly the car allowance and the granting of accident insurance coverage. Secondary employment is on principle subject to approval.
The contract periods for the members of the management board are linked to the terms of appointment as member of the management board. The contracts for the members of the management board provide for a post-contractual non-competition clause. The members of the management board are contractually prohibited from supplying services to or for a competitor within the period of one and a half years after their resignation.
The remuneration system for the management board is intended to address the following aspects:
This results in the following requirements on the remuneration system:
An individual target salary is agreed upon with each member of the management board at the time of conclusion and/or amendment of a contract. The amount of the target salary depends inter alia on the following:
For all members of the management board, the same percentage of the salary target is defined representing the basis for calculating the variable remuneration. The amount of the variable component considers the previous and other regulations of the company, customary market conditions and the recommendations of the Corporate Governance Code.
The variable component for members of the management board at Basler AG is set at 25 % of the target salary.
The strategic goal of a highly profitable high-growth company and our fundamental decision in favor of high-equity corporate financing lead to measuring the corporate success in terms of profitability and growth.
Earnings before taxes (EBT) in relation to sales are considered as a suitable indicator for profitability.
Profitability = EBT Sales
The percentage increase of the sales revenues compared to the previous year is considered as a suitable indicator for growth.
Growth in sales = Current sales -1 Previous year´s sales
At the beginning of each fiscal year expected values are agreed upon as targets for both indicators. The profitability target is based on the long-term profit expectation and is supposed to show high continuity over the years. The sales expectations also take into account medium and shorter-term influences and will thus fluctuate more strongly from year to year.
At the beginning of each fiscal year tolerance ranges for both indicators are agreed upon describing the scope of normal business activity. The lower benchmark figure of the tolerance shall mark the transition from a basically satisfactory result to an unsatisfactory result. Vice versa, the upper benchmark figure marks the dividing line between good and very good performance.
The level of target achievement is determined by linear functions concerning profitability and growth. These functions will each show 100% target achievement if the values for profitability and growth specified after conclusion of the annual financial statements exactly correspond to the expected values. The functions will show 0 % target achievement if the actual values fall below the expected values by an amount equaling the width of the tolerance. The functions will become negative if the downward deviations are even more pronounced.
Profitability and growth are equally important targets. However, in case of doubt the demand for profitability is more imperative than the demand for continuous growth. Thus, lacking profitability shall not be compensated by unrestrained growth. Accordingly, the degree of achievement for growth is limited to 400 %. Furthermore, the degrees of achievement are currently balanced at a ratio of 60 % to 40 % in favor
of profitability. Adding up both weighted degrees of achievement for profitability and growth it results in the level of the total target achievement for the fiscal year.
The required limitation for the components of variable remuneration is set between -100 % to +400 %.
The total target achievement (-100 % to 400 %) is multiplied by the variable component of the target salary as defined above and results in the amount in euros for the bonus entitlement of the respective member of the management board for the elapsed fiscal year. Accordingly, the bonus entitlement can amount to between -25 % (malus) to 75 % of the target salary.
The bonus entitlement calculated in that way is not paid immediately. In order to do justice to the required sustainability and the multi-year assessment basis the bonus amounts are paid delayed by a bonus bank and are subject to the risk of a substantial decrease due to subsequent worsening of the situation. A separate account is kept for the bonus claims of each member of the management board.
The bonus or malus calculated for the elapsed fiscal year is booked to the individual account. Allowing for the previous balance this results in a current account balance. If this account balance is positive one third will be paid out. Two thirds will be forwarded to new account and be considered in the next year. Negative balances must be compensated by positive balances or bonus deposits before payouts can be made by the bonus bank.
The total remuneration consists of the fixed salary (75 % of the target salary) and the payment made by the bonus bank.
If the targets agreed upon concerning profitability and growth are achieved on average over several years, the actual total remuneration will be in the amount of the target salary. If the targets are clearly missed for a long time, only the fixed salary will be paid out (75 % of the target salary) in the long term.
In case of significant overachievement of the profitability and the growth target over several years a gradually increasing total remuneration of a maximum of 175 % of the target salary will be paid out.
With regard to the information concerning the recommendations pursuant to nos. 4.2.5 para. 3 sent. 2 DCGK (Deutsche Corporate Governance Kodex, German Corporate Governance Code) we refer to the notes.
No remuneration model will ever be able to consider all eventualities of real influences. It shall be as simple as possible and must consequently fail in the case of extraordinary and unpredictable boundary conditions.
In the event of serious crises (for example the global economic crisis 2008/2009) or success of the management board that cannot be represented in the profit and loss statement (for example strategic successes or the averting of threatening situations) such a remuneration model does not provide satisfactory results.
In order to reduce such system related disadvantages of a required remuneration system the supervisory board of Basler AG reserves two possibilities to intervene in the system:
In the case of extraordinary difficult circumstances, the supervisory board may resolve on suspending or delaying impending payouts by the bonus bank, especially if bonus payments seem to be inappropriate with regard to stress on the staff or partners. The management board members' basic claim for payout remains intact.
In the case of extremely good results that are significantly above all expectations, the supervisory board may resolve on making special allocations to the bonus bank, especially if these results are not necessarily represented in the profit and loss statement. As the normal bonus, these special allocations also risk to decrease before being paid out over the years. The special allocations for each member of the management board can be resolved individually.
If the bonus bank shows a negative balance at the time of termination of office as member of the management board, it will be cleared by the company. In return, in the case of a positive balance the employment contracts provide that this balance remains in the bonus bank and thus is subject to the risk of decrease in the following years, analogous to the entitlement calculations of the remaining members of the management board in that year. However, after resigning from the management board no new positive claims will be transferred to the bonus bank. Payouts by the bonus bank to the remaining members of the management board are made at the scheduled regular dates. Thereby, one third each is paid out of the balance existing at the two scheduled regular dates subsequent to the resigning of the member of the management board and the remaining balance is paid out at the third regular date.
Independently of the remuneration model, in the case of premature termination of office as member of the management board without good cause, it is agreed upon a limitation of payments to the value of two annual remunerations which are not allowed to exceed the total of claims resulting from the remaining term of the employment contract.
Thus, the remuneration model for the management board agreed upon by the shareholders' meeting 2011 meets the requirements of the Corporate Governance Code related to:
Remuneration of the members of the supervisory board is set forth in the Articles of Incorporation. Chairmanship and vice chairmanship of the supervisory board are given consideration by extra pays of 100 % and/or 50 %. Given the current level of fixed remuneration, the addition of a performance related component to remuneration is not considered.
Ahrensburg, March 5, 2015
Dr. Dietmar Ley John P. Jennings
(CEO) (CCO)
Arndt Bake Hardy Mehl (CMO) (CFO/COO)
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| Notes | 01/01/ - | 01/01/ - | |
|---|---|---|---|
| in € k | 12/31/2014 | 12/31/2013 | |
| Sales revenues | 4 | 79,240 | 65,110 |
| Cost of sales | -38,211 | -32,564 | |
| - of which depreciations on capitalized developments | 10 | -2,531 | -2,743 |
| Gross profit on sales | 41,029 | 32,546 | |
| Other operating income | 5 | 2,295 | 1,690 |
| Sales and marketing costs | -14,082 | -11,538 | |
| General administration costs | -10,041 | -7,726 | |
| Research and development | -5,287 | -4,975 | |
| Other expenses | 6 | -1,372 | -1,461 |
| Operating result | 12,542 | 8,536 | |
| Financial income | 7 | 58 | 615 |
| Financial expenses | 7 | -1,496 | -1,374 |
| Financial result | -1,438 | -759 | |
| Earnings before tax | 11,104 | 7,777 | |
| Income tax | 8 | -2,926 | -2,215 |
| Group´s year surplus | 8,178 | 5,562 | |
| of which are allocated to | |||
| shareholders of the parent company | 8,178 | 5,562 | |
| non-controlling shareholders | 0 | 0 | |
| Average number of shares | 9.5 | 3,219,331 | 3,281,312 |
| Earnings per share diluted / undiluted (€) | 2.54 | 1.70 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| in € k | Notes | 01/01/ - 12/31/2014 |
01/01/ - 12/31/2013 |
|---|---|---|---|
| Group's year surplus Result from differences due to currency conversion, |
8,178 | 5,562 | |
| directly recorded in equity | 18.3 | 349 | -83 |
| Surplus / Net loss from cash flow hedges | 18.3 | 0 | 168 |
| Total result, through profit or loss | 349 | 85 | |
| Total result | 8,527 | 5,647 | |
| of which are allocated to | |||
| shareholders of the parent company | 8,527 | 5,647 | |
| non-controlling shareholders | 0 | 0 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| Notes in € k |
01/01/ - 12/31/2014 |
01/01/ - 12/31/2013 |
|---|---|---|
| Operating activities | ||
| Group's year surplus | 8,178 | 5,562 |
| Increase (+) / decrease (-) in deferred taxes | 1,440 | 1,224 |
| Payout/ incoming payments for interest | 1,540 | 1,437 |
| Depreciation of fixed assets | 5,339 | 5,424 |
| Change in capital resources without affecting payment | 349 | 85 |
| Increase (+) / decrease (-) in accruals | 1,404 | 367 |
| Profit (-) / loss (+) from asset disposals | -12 | -3 |
| Increase (-) / decrease (+) in reserves | -2,954 | -1,959 |
| Increase (+) / decrease (-) in advances from demand | -1,432 | 1,557 |
| Increase (-) / decrease (+) in accounts receivable | -85 | -555 |
| Increase (-) / decrease (+) in other assets | 342 | 247 |
| Increase (+) / decrease (-) in accounts payable | 1,137 | -714 |
| Increase (+) / decrease (-) in other liabilities | 704 | -528 |
| Net cash provided by operating activities | 15,950 | 12,144 |
| Investing activities | ||
| Payout for investments in fixed assets | -8,731 | -6,537 |
| Incoming payments for asset disposals | 172 | 27 |
| Net cash provided by investing activities | -8,559 | -6,510 |
| Financing activities | ||
| Payout for amortisation of bank loans | -400 | -1,925 |
| Payout for amortisation of finance lease | -1,325 | -1,242 |
| Incoming payment for borrowings from banks | 2,701 | 3,210 |
| Interest payout | -1,540 | -1,437 |
| Payout for own shares | -2,161 | -1,790 |
| Dividends paid | -1,519 | -982 |
| Net cash provided by financing activities | -4,244 | -4,166 |
| Change in liquid funds | 3,147 | 1,468 |
| Funds at the beginning of the fiscal year | 9,665 | 8,197 |
| Funds at the end of the fiscal year | 12,812 | 9,665 |
| Composition of liquid funds at the end of the fiscal year | ||
| Cash in bank and cash in hand 16 |
12,812 | 9,665 |
| Payout for taxes | 1,041 | 1,624 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| in € k | Notes | 12/31/2014 | 12/31/2013 |
|---|---|---|---|
| Assets | |||
| A. Long-term assets | |||
| I. Intangible assets | 10 | 17,380 | 14,516 |
| II. Fixed assets | 10 | 5,365 | 4,295 |
| III. Buildings and land in finance lease | 17 | 16,008 | 16,700 |
| IV. Other financial assets | 5 | 5 | |
| V. Deferred tax assets | 11 | 58 | 44 |
| 38,816 | 35,560 | ||
| B. Short-term assets | |||
| I. Inventories | 12 | 12,550 | 9,595 |
| II. Receivables from deliveries and services | |||
| and from production orders | 13 | 6,963 | 6,878 |
| III. Other short-term financial assets | 14 | 351 | 217 |
| IV. Other short-term assets | 14 | 507 | 944 |
| V. Claim for tax refunds | 15 | 342 | 392 |
| VI. Cash in bank and cash in hand | 16 | 12,812 | 9,665 |
| 33,525 | 27,691 | ||
| 72,341 | 63,251 |
| Liabilities 18 A. Equity |
3,181 | |
|---|---|---|
| I. Subscribed capital | 3,238 | |
| II. Capital reserves | 0 | 0 |
| III. Retained earnings including group's earnings | 33,931 | 29,376 |
| IV. Other components of equity | 195 | -154 |
| 37,307 | 32,460 | |
| B. Long-term debt | ||
| I. Long-term liabilities | ||
| 1. Long-term liabilities to banks 19 |
7,413 | 5,599 |
| 2. Other financial liabilities | 0 | 8 |
| 3. Liabilities from finance lease | 11,531 | 12,859 |
| 20 II. Non-current provisions |
796 | 515 |
| III. Deferred tax liabilities 11 |
2,647 | 1,193 |
| 22,387 | 20,174 | |
| C. Short-term debt | ||
| 19 I. Other financial liabilities |
2,286 | 1,540 |
| II. Short-term accrual liabilities 20 |
3,861 | 3,201 |
| III. Short-term other liabilities | ||
| 1. Liabilities from deliveries and services | 2,277 | 1,132 |
| 2. Other short-term financial liabilities | 1,369 | 2,355 |
| 3. Liabilities from finance lease 17 |
2,154 | 2,151 |
| IV. Current tax liabilities | 700 | 238 |
| 12,647 | 10,617 | |
| 72,341 | 63,251 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| Acquisition and production costs | ||||||
|---|---|---|---|---|---|---|
| Foreign | ||||||
| in € k | As of 01/01/2014 |
Additions | Transfers | Disposals | exchange differentials |
As of 12/31/2014 |
| Intangible assets | ||||||
| Licenses | 4,842 | 334 | 30 | -105 | 0 | 5,101 |
| Finished own developments | 16,810 | 31 | 2,648 | 0 | 0 | 19,489 |
| Own developments in process | 6,603 | 5,900 | -2,648 | 0 | 0 | 9,855 |
| Payments for third-party | ||||||
| developments | 60 | 286 | -30 | 0 | 0 | 316 |
| Total intangible assets | 28,315 | 6,551 | 0 | -105 | 0 | 34,761 |
| Tangible Assets | ||||||
| Land and buildings on | ||||||
| third-party land | 1,526 | 16 | 122 | 0 | 5 | 1,669 |
| Technical equipment and machinery | 5,446 | 791 | 499 | -102 | 10 | 6,644 |
| Other furniture, fixtures, | ||||||
| and equipment | 3,168 | 618 | 172 | -104 | 13 | 3,867 |
| Assets under construction | 462 | 755 | -793 | 0 | 0 | 424 |
| Total tangible assets | 10,602 | 2,180 | 0 | -206 | 28 | 12,604 |
| Buildings and land under | ||||||
| finance leases | ||||||
| Land of finance lease | 1,817 | 0 | 0 | 0 | 0 | 1,817 |
| Buildings of finance lease | 24,391 | 0 | 0 | 0 | 0 | 24,391 |
| Total buildings and land | ||||||
| under finance leases | 26,208 | 0 | 0 | 0 | 0 | 26,208 |
| Other financial assets | 5 | 0 | 0 | 0 | 0 | 5 |
| Total other financial assets | 5 | 0 | 0 | 0 | 0 | 5 |
| Total assets | 65,130 | 8,731 | 0 | -311 | 28 | 73,578 |
* Appendix to the notes
| Net book value | Depreciations | ||||||
|---|---|---|---|---|---|---|---|
| Previous year |
As of 12/31/2014 |
As of 12/31/2014 |
Foreign exchange differentials |
Disposals | Unscheduled depreciations |
Additions | As of 01/01/2014 |
| 1,077 | 989 | 4,112 | 0 | -86 | 0 | 433 | 3,765 |
| 6,776 | 6,219 | 13,270 | 0 | 0 | 704 | 2,532 | 10,034 |
| 6,603 | 9,855 | 0 | 0 | 0 | 0 | 0 | 0 |
| 60 | 316 | 0 | 0 | 0 | 0 | 0 | 0 |
| 14,516 | 17,379 | 17,382 | 0 | -86 | 704 | 2,965 | 13,799 |
| 928 | 962 | 707 | 5 | 0 | 0 | 104 | 598 |
| 1,819 | 2,438 | 4,206 | 7 | -40 | 0 | 612 | 3,627 |
| 1,086 | 1,542 | 2,325 | 6 | -25 | 0 | 262 | 2,082 |
| 462 | 424 | 0 | 0 | 0 | 0 | 0 | 0 |
| 4,295 | 5,366 | 7,238 | 18 | -65 | 0 | 978 | 6,307 |
| 1,817 | 1,817 | 0 | 0 | 0 | 0 | 0 | 0 |
| 14,883 | 14,191 | 10,200 | 0 | 0 | 0 | 692 | 9,508 |
| 16,700 | 16,008 | 10,200 | 0 | 0 | 0 | 692 | 9,508 |
| 5 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 5 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 35,516 | 38,758 | 34,820 | 18 | -151 | 704 | 4,635 | 29,614 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2013 to December 31, 2013
| Acquisition and production costs | ||||||
|---|---|---|---|---|---|---|
| Foreign | ||||||
| in € k | As of 01/01/2013 |
Additions | Transfers | Disposals | exchange differentials |
As of 12/31/2013 |
| Intangible assets | ||||||
| Licenses | 4,844 | 422 | 123 | -546 | -1 | 4,842 |
| Finished own developments | 19,885 | 245 | 1,007 | -4,327 | 0 | 16,810 |
| Own developments in process | 3,593 | 4,017 | -1,007 | 0 | 0 | 6,603 |
| Payments for third-party | ||||||
| developments | 123 | 60 | -123 | 0 | 0 | 60 |
| Total intangible assets | 28,445 | 4,744 | 0 | -4,873 | -1 | 28,315 |
| Tangible Assets | ||||||
| Land and buildings on | ||||||
| third-party land | 1,167 | 339 | 66 | -41 | -5 | 1,526 |
| Technical equipment and machinery | 5,281 | 556 | 52 | -439 | -4 | 5,446 |
| Other furniture, fixtures, | ||||||
| and equipment | 3,072 | 304 | 113 | -317 | -4 | 3,168 |
| Assets under construction | 99 | 594 | -231 | 0 | 0 | 462 |
| Total tangible assets | 9,619 | 1,793 | 0 | -797 | -13 | 10,602 |
| Buildings and land under finance leases |
||||||
| Land of finance lease | 1,817 | 0 | 0 | 0 | 0 | 1,817 |
| Buildings of finance lease | 24,391 | 0 | 0 | 0 | 0 | 24,391 |
| Total buildings and land | ||||||
| under finance leases | 26,208 | 0 | 0 | 0 | 0 | 26,208 |
| Other financial assets | 5 | 0 | 0 | 0 | 0 | 5 |
| Total other financial assets | 5 | 0 | 0 | 0 | 0 | 5 |
| Total assets | 64,277 | 6,537 | 0 | -5,670 | -14 | 65,130 |
* Appendix to the notes
| Net book value | Depreciations | ||||||
|---|---|---|---|---|---|---|---|
| Previous year |
As of 12/31/2013 |
As of 12/31/2013 |
Foreign exchange differentials |
Disposals | Unscheduled depreciations |
Additions | As of 01/01/2013 |
| 1,052 | 1,077 | 3,765 | 0 | -546 | 11 | 508 | 3,792 |
| 8,874 | 6,776 | 10,034 | 0 | -4,328 | 608 | 2,743 | 11,011 |
| 3,593 | 6,603 | 0 | 0 | 0 | 0 | 0 | 0 |
| 123 | 60 | 0 | 0 | 0 | 0 | 0 | 0 |
| 13,642 | 14,516 | 13,799 | 0 | -4,874 | 619 | 3,251 | 14,803 |
| 618 | 928 | 598 | -5 | -33 | 0 | 87 | 549 |
| 1,764 | 1,819 | 3,627 | -3 | -435 | 0 | 548 | 3,517 |
| 907 | 1,086 | 2,082 | -4 | -306 | 0 | 227 | 2,165 |
| 99 | 462 | 0 | 0 | 0 | 0 | 0 | 0 |
| 3,388 | 4,295 | 6,307 | -12 | -774 | 0 | 862 | 6,231 |
| 1,817 | 1,817 | 0 | 0 | 0 | 0 | 0 | 0 |
| 15,575 | 14,883 | 9,508 | 0 | 0 | 0 | 692 | 8,816 |
| 17,392 | 16,700 | 9,508 | 0 | 0 | 0 | 692 | 8,816 |
| 5 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 5 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 34,427 | 35,516 | 29,614 | -12 | -5,648 | 619 | 4,805 | 29,850 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2014 to December 31, 2014
| Other components of equity | |||||||
|---|---|---|---|---|---|---|---|
| in € k | Subscribed capital |
Capital reserve |
Retained earnings incl. group's earnings |
Differences due to currency conversion |
Reserves for cash flow hedges |
Sum of other components of equity |
Total |
| Notes | 18.1 | 18.3 | 18.3 | ||||
| Shareholders' equity as of 01/01/2013 |
3,326 | 0 | 26,498 | -71 | -168 | -239 | 29,585 |
| Total result | 0 | 0 | 5,562 | -83 | 168 | 85 | 5,647 |
| Share buyback | -88 | 0 | -1,702 | 0 | 0 | 0 | -1,790 |
| Dividend outpayment* | 0 | 0 | -982 | 0 | 0 | 0 | -982 |
| Shareholders' equity as of 12/31/2013 |
3,238 | 0 | 29,376 | -154 | 0 | -154 | 32,460 |
| Total result | 0 | 0 | 8,178 | 349 | 0 | 349 | 8,527 |
| Share buyback | -57 | 0 | -2,104 | 0 | 0 | 0 | -2,161 |
| Dividend outpayment** | 0 | 0 | -1,519 | 0 | 0 | 0 | -1,519 |
| Shareholders' equity as of 12/31/2014 |
3,181 | 0 | 33,931 | 195 | 0 | 195 | 37,307 |
* € 0.30 per share
** € 0.47 per share
The Basler group develops, manufactures, and sells on a world wide scale industrial goods in the area of Vision Technology - the technology of machine vision. The Basler corporation has its headquarters in 22926 Ahrensburg (Germany), An der Strusbek 60-62, and maintains subsidiaries in Singapore, Taiwan, and the USA as well as sales and service offices in Japan, South Korea, China, Finland, Poland, and UK. Development and manufacturing are carried out in the German headquarters. In July 2014, a further production line was opened in the Singapore subsidiary. The production in Asia exclusively manufactures cameras for the Asian market and is currently concentrating on selected camera types. .
The shares of Basler AG have been listed at the Frankfurt Stock Exchange since March 23, 1999. The Basler AG has subjected itself to the Prime Standard regulations.
The consolidated financial statements of Basler AG were prepared according to the International Financial Reporting Standards (IFRS) as applicable within the European Union (EU) and in addition, according to the regulations of commercial law, as stipulated by § 315a Sec. 1 German Code of Commercial Law, Handelsgesetzbuch - HGB. The European Commission has adopted for use in the EU all IFRS that were issued by the International Accounting Standards Board (IASB) and that were in force at the time of preparation of the present consolidated financial statements. These IFRS were also adopted by Basler AG. Therefore, the term "IFRS" will be used below.
The application of IFRS 10 has no effects. IFRS 11 is not applicable, since Basler AG is not participating in joint arrangements. The application of IFRS 12 did not result in further notes. IAS 28 is not applicable, since no investments in associates or joint ventures were held.
The following IFRS incorporated into EU law were issued as at the reporting date, their application is, however, only mandatory in future reporting periods. The Basler group has decided not to exercise a possible option of an early application in the case of standards and interpretations with mandatory application only in future reporting periods.
| Amendment / standard | Publication date |
Date of incorporation into EU law |
Date of application (EU) |
|---|---|---|---|
| Annual improvements of IFRS – cycle 2011-2013 |
December 12, 2013 |
December 18, 2014 |
July 1, 2014 |
| Annual improvements of IFRS – cycle 2010-2012 |
December 12, 2013 |
December 17, 2014 |
July 1, 2014 |
| Defined benefit plans: Employee contributions (Amendments of IAS 19) |
21. November 2013 |
December 17, 2014 |
July 1, 2014 |
| IFRIC 21 Notes | May 20, 2013 | June 13, 2014 | June 17, 2014 |
The individual effects of the amendments are investigated by the group. The estimated effects of the initial application of IFRS 10 were reviewed. However, due to the simple and clear participation structure within the Basler group no effects are expected.
All amounts are stated in thousand euros (€ k) unless stated otherwise.
The fiscal year corresponds to the calendar year. Comparative figures of the previous year are indicated in the group's comprehensive financial statement, in the cash flow statement, and in the statement of the registered earnings and expenditures.
The group's annual balance sheet is prepared under the going concern premise.
The preparation of the consolidated financial statement in accord with IFRS requires the management to make estimates and assumptions regarding the recognition and amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date, and regarding the amount of turnover and expenses reported during the period under review. The actual results can deviate from these assessed values. Critical accounting estimates arise as to the evaluation of tangible assets concerning the useful
life as well as to the evaluation of internally generated intangible assets concerning the useful life and to expected sales. In the course of the fiscal year, a review of the underlying useful lives revealed that two projects needed to be adjusted to given market conditions. The book values of the tangible and intangible assets result from the development of the fixed assets. The management board is of the opinion that the book value of the internally generated intangible assets despite possibly low sales volumes will be entirely realized.
All major subsidiaries that are directly or indirectly controlled by Basler AG as provided by IAS 27 are included in the group's annual balance sheet.
For a list of subsidiaries and investments, see note III, 29.
The financial statements to be consolidated of Basler AG as parent company and of the subsidiaries included in the consolidation were prepared using uniform accounting and valuation methods. All intragroup business transactions, balances, and profit and loss are completely eliminated in the context of consolidation.
The functional currency of the subsidiaries is the currency of the respective country, except for Basler Asia Pte. Ltd. which prepares the balance in euros. Consequently, on the balance sheet date, assets and liabilities are converted into euros using the applicable exchange rate on the reporting date. Sales and expenses are converted using the average exchange rate of the period under review. Accumulated exchange rate gains and losses are reported as a separate component of the equity capital. In the fiscal year, equity capital was increased by € 349 thousand (previous year: decreased by € 83 thousand).
Business transactions made in foreign currencies in the individual financial statements of the consolidated companies were converted at the exchange rates applicable on the reporting dates of the transactions. In fiscal year 2014, profits amounting to € 1,054 thousand (previous year: € 361 thousand) and expenses amounting to € 688 thousand (previous year: € 658 thousand) accrued, respectively.
The income is reported under other operating income and the expenses under general administrative expenses in the respective annual financial statements. Transactions within the European Union are recorded using the applicable fixed euro exchange rates. Further relevant exchange rates are listed below:
| Applicable exchange rates as of | ||||
|---|---|---|---|---|
| 12/31/2014 | 12/31/2013 | |||
| 1 Euro | US dollar 1.2141 | US dollar 1.3791 | ||
| 1 Euro | New Taiwan dollar 38.6092 |
New Taiwan dollar 41.3155 |
||
| Average exchange rates | ||||
| 2014 | 2013 | |||
| 1 Euro | US dollar 1.3285 | US dollar 1.3281 |
Sources: Exchange rates of the European Central Bank with the exception of the New Taiwan dollar which is based on the Interbank spot rate.
Capital consolidation is performed according to the purchase method where at the time of acquisition the acquisition costs for the holding are charged against the proportionate equity capital. Assets and debts of the subsidiaries are valued at their fair values if the fair values to be applied deviate from their book values.
All intra-group balances, earnings, and expenses as well as unrealized profits and losses from intra-group transactions are eliminated to their full amounts. Deferred taxes are delimited according to IAS 12 from consolidation procedures impacting on revenue results.
Earnings are recorded when it is probable that the economic benefits will accrue for the group and when the amounts of the earnings can reliably be estimated. Earnings are assessed according to the applicable time values of the considerations received or to be received. Discounts, rebates and value-added tax or other dues are not considered. Moreover, the realization of earnings presupposes the following criteria for assessment to be satisfied.
Earnings for goods and products are recorded after the relevant opportunities and risks related to the ownership of the goods and products sold were transferred to the buyer. Generally, this applies at the time of shipment of the goods and products. Earnings from customer-specific manufacturing across periods are recorded as earnings according to the degree of
completion (percentage-of-completion method). The degree of completion is determined according to the costs accrued on the balance sheet date. The degree of completion is expressed as percentage of the estimated total costs of the related project. Earnings are recorded only to the amount of the accrued reimbursable expenses if the result of an order cannot reliably be estimated.
Earnings from subleasing the office building in Ahrensburg are recorded in the period in which they arise and in accord with the regulations of the contract concerned.
Interest income is recorded when the interest has accrued (using the effective interest method). Interest income is reported in the statement of comprehensive income as part of the financial income.
The actual tax refund claims and the tax liabilities for current and previous periods are assessed as the amounts that are expected as refunds by and payments to the tax authority, respectively. The amounts are calculated based on the taxes and tax laws applicable at the balance sheet date.
Actual taxes referring to items directly recorded with the equity capital are not recorded in the income statement but with the equity capital.
Deferred taxes are accounted for under the asset and liability method. There, temporary differences at the balance sheet date are considered between the valuation of an asset or a debt in the balance sheet and the valuation for taxation.
Deferred tax liabilities are recorded for all taxable temporary differences with these exceptions:
With the exceptions listed below, deferred tax assets are recorded for all deductible temporary differences, not yet used tax loss carry forwards, and unused tax credits to the likely extent that the taxable profit will be available, against which the deductible temporary differences, the not yet used tax loss carry forwards, and tax credits can be applied:
The book values of the deferred income tax assets are checked on every balance sheet date and are reduced by an amount so as to make it improbable that a sufficient taxable result will be available against which the latent tax asset can at least partly be applied. Deferred tax assets that have not undergone valuation are checked on every balance sheet date and are valued at an amount so as to make it probable that a future taxable result will permit realizing the deferred tax asset.
Deferred tax assets and tax liabilities are assessed using those tax rates that will presumably be valid in the period when an asset will be realized or when a debt will be cleared. The assessments are based on the tax rates (and tax laws) valid on the balance sheet date. Future changes of tax rates are taken into account if material prerequisites for being effective are given in the context of the legislative process on the balance sheet date.
Deferred taxes related to items directly recorded with the equity capital are not recorded in the income statement but with the equity capital. Deferred tax assets and tax liabilities are offset against each other if the group has an enforceable claim to the offset of the actual tax refund claims against the actual tax liabilities and if they relate to the income taxes of the same taxable entities, where the taxes are levied by the same tax authority.
Government grants for development expenses are recorded if it is reasonably assured that the grants will be granted and that the company will meet the related conditions. Expense-related grants are regularly recorded as income for the period that is necessary for offsetting the grants against the corresponding expenses. Grants for an asset directly decrease the book value of the asset and they are recorded as income due to decreased depreciation. In the income statement it is reported as gross statement shown under other operating income.
In the case of non-monetary grants to the group, the assets and the grants are recorded at their nominal values and, if possible, are reversed and recognized in income in equal annual rates over the estimated useful lives of the assets concerned.
Treasury shares acquired by the group are recorded at acquisition cost and are directly deducted from equity capital. The acquisition, sale, issue or withdrawal of treasury shares is not recognized in income. Possible differences between book values and considerations are recorded in the other capital reserve or in the capital reserve.
Receivables and other financial assets are capitalized at acquisition costs on the settlement date. If a receivable is in danger of not being recoverable due to a customer's illiquidity, specific allowance is used to the full amount of the receivable.
When the fair values of financial assets or liabilities are assessed or stated, they are on principle based on the market values or stock exchange values. In the absence of an active market the fair values are assessed based on accepted methods of financial mathematics.
The corporate group enters into a variety of derivative financial instruments in order to manage its exposure to interest and foreign exchange rate risks. These include forward exchange contracts, interest swaps, and foreign currency options. Derivatives are initially recognized at the time of the transaction at fair value and subsequently valued at fair value at each reporting date. The resulting valuation gain or loss is immediately recognized in the income statement unless the derivative is designated and effective as a hedging instrument for hedge accounting purposes. The timing of recognizing the valuation results in the income statement depends on the type of hedging relationship. The effective portion of change in the fair value of derivatives that are suitable and designated as cash flow hedges is recognized in total comprehensive income under the item of cash flow hedges reserve. If necessary, the gains or losses as a result of the ineffective portion is immediately recognized in the income statement under the item Other income/other expenses.
Raw materials, supplies, operating materials, merchandise as well as unfinished and finished products are stated as inventories, unless they can be attributed to a customer order.
Inventories are valued at the acquisition costs or the production costs and net selling price, whichever is less.
Costs that have accrued for taking inventories to their present location and for bringing them into their current states are balanced in the following way:
The net selling price is the estimated sales revenue that can be realized in the normal course of business minus the estimated costs accrued until completion and estimated distribution costs.
Tangible assets are valued on principle at acquisition costs or production costs minus accumulated scheduled depreciation and accumulated impairment losses. The useful lives applied for this purpose correspond to the expected periods of use of the assets within the company. Residual values were neglected in the calculation of depreciations due to insignificance. Revaluations of the tangible fixed assets are not performed.
The scheduled linear depreciations of property, plant, and equipment are largely based on the following useful lives:
| Useful life in | |
|---|---|
| Asset | years |
| Technical equipment and | 3 to 8, 10 to 11, |
| machinery | 13 to 14 |
| Other equipment, operational | 3 to 11, 13 to 15 |
| and office equipment | |
| Parking garages | 20 |
| Commercial and office buildings | 38 to 40 |
The book values of the tangible assets are reviewed as of every reporting date to identify any evidence of impairment. For details please see 3.17.
Intangible assets acquired against payment, mainly software, are capitalized at purchase costs and amortized over their scheduled useful lives.
Research costs are recorded as expense for the period of their accrual. Development costs for an individual project are only capitalized as intangible assets if the following conditions can be proven to apply:
The development costs are balanced according to their initial valuation applying the cost model, i.e. using acquisition costs minus accumulated amortizations and accumulated impairment losses. Amortization starts from the termination of the development phase and from the time when the asset can be used. Amortization is carried out on a straight-line basis over the period for which future benefit can be expected. The following useful lives are assumed:
| Asset | Useful life in years |
|---|---|
| Capitalized development costs | 3 to 10 |
| Software, product development received against payment |
3 to 7 |
The amortization cost is included in the group's profit and loss statement, in the cost for service performed, in the sales and marketing expenses, and in the general administrative expenses.
At least once a year and at particular instigation an impairment test is carried out during the development phase. For details please see 3.17.
The item includes cash on hand as well as short-term deposits with maturities of less than three months.
A lease is classified as "operating lease" if essentially all risks and opportunities associated with economic ownership therein remain with the lessor.
Liabilities from financing lease agreements are stated at the net present value of the lease payments at the time of conclusion of the contract while other liabilities are stated at the repayment values and/or amortized costs.
Borrowing costs are capitalized on qualifying assets according to IAS 23. They are added to the production costs of the assets until the date when the assets are essentially ready for their intended use or for sale. Achieved earnings from temporary investment of specially raised borrowed capital until its disbursement for qualifying assets are deducted from the borrowing costs that can be capitalized.
All other borrowing costs are recognized as income in the period where they accrue.
Financial debt is stated at its amortized cost. This includes bank debt, liabilities from finance leases, and other financial liabilities.
Provisions are recognized when Basler has a present (legal or constructive) obligation due to a past event, when settlement of the obligation is expected to result in an outflow of resources of economic benefit, and when the amount of the obligation can reliably be estimated. If the group expects to receive a reimbursement of at least part of a provision from an identifiable third party (e.g., in the case of an insurance policy) the reimbursement is recognized as a separate asset provided the influx of the reimbursement is virtually certain. The expense from recognizing the provision is recorded in the income statement minus reimbursement. If the effect of the time value of money resulting from discounting is material, provisions are discounted at a pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as interest expense.
The fair value to be applied is the price at which an asset would be sold or at which a debt would be transferred at the valuation date in an orderly business transaction between market participants. This applies regardless of whether the price is directly observable or was estimated using a valuation method.
The fair value is not always available as market price. In many cases it must be determined on the basis of different valuation parameters. Depending on the availability of observable parameters and the significance of these parameters for the determination of the fair value in the whole, the fair value is assigned to the levels 1, 2, or 3. The classification is made according to the following:
The book values of property, plant, and equipment as well as intangible assets are reviewed at each reporting date (December 31) for indications of impairment (impairment test). If such indications are apparent, the recoverable amount of the asset is estimated in order to determine the amount of the possible impairment loss. If the recoverable amount cannot be estimated at the level of the specific asset, the recoverable amount of the cash-generating unit (CGU) to which the respective asset is allocated will be determined. At Basler AG, the allocation is made on the level of camera families as CGU.
Intangible assets that are not yet in use are tested for impairment at least once a year and in case of indications of an impairment (triggering events). The recoverable amount is defined as the higher amount of the fair value minus cost to sell and the value in use. For determination of the value in use the estimated future cash flows are discounted using a pre-tax interest rate. This pre-tax interest rate considers the current market evaluation of the time value of the money as well as risks related to the asset, if this has not already been considered in the estimation
of the cash flows. The calculations are based on forecasts resulting from financial plans approved by the management. The fair value minus cost to sell is determined using an appropriate valuation model which does not differ from the calculation of the utility value. If the recoverable amount of an asset falls below its book value, the book value is depreciated to the recoverable amount. An impairment loss is recognized immediately in profit or loss.
In case of a reversal of the impairment loss, the book value of the asset will be increased to the newly determined recoverable amount. Here the upper value limit of the attribution in the amount of the original book value of the asset and/or of the CGU needs to be observed. A reversal is immediately recognized in the profit and loss.
For intangible assets with indefinite useful life the impairment test will be made on the level of camera families as CGU. The recoverable amount will be determined on the basis of the calculation of a utility value based on cash flow forecasts. The cash flow forecasts are based on financial plans approved by the management for a period of four years. The planning period reflects the assumptions for short- to mid-term market developments. The company assumes a sales growth in the lower double-digit percentage range for 2015 and the following years. The gross profit margin is expected to decline slightly. Cash flows arising after the planning period are not considered. The discount factor before taxes used for the cash flow forecasts is 8 % (previous year: 8 %). It is based on the concept of weighted average capital costs. In the calculation of the utility value as well as of the fair value less cost to sell (using DCF method) there are uncertain estimates for the underlying assumptions, particularly with regard to:
A discount interest rate of more than 39 % and/or an expected decline of the gross profit by 26 % would lead to a devaluation of the assets.
The sales revenues from the sale of goods amounting to € 79,240 thousand (previous year: € 65,110 thousand) include sales from solutions business amounting to € 5,950 thousand (previous year: € 5,278 thousand).
The other operational profit includes the following:
| 2014 | 2013 | |
|---|---|---|
| Currency exchange gains | 1,054 | 361 |
| Rental income | 623 | 837 |
| Subsidies for research and development |
150 | 44 |
| Insurance recoveries | 9 | 0 |
| Income from the release of provisions |
78 | 73 |
| Other | 381 | 375 |
| 2,295 | 1,690 |
The other expenses include the following:
| 2014 | 2013 | |
|---|---|---|
| Full costs for research and development |
11,040 | 9,109 |
| Capitalization of own development costs |
-5,753 | -4,134 |
| Unscheduled depreciations on capitalized developments |
704 | 608 |
| Premises costs | 577 | 740 |
| Further other expense | 91 | 113 |
| 6,659 | 4,436 |
| 2014 | 2013 | |
|---|---|---|
| Interest income from cash in bank | 28 | 1 |
| Interest income from derivative financial instruments |
22 | 21 |
| Interest expense on bank loans | -194 | -174 |
| Other interest expenses | -16 | 0 |
| Interest expense from derivative financial instruments |
-352 | -360 |
| Interest income from discounting | 8 | 81 |
| Capitalization of interest pursuant to IAS 23 |
178 | 128 |
| Mark-to-market evaluation of derivative financial instruments |
-224 | 512 |
| Interest expense for finance lease | -888 | -968 |
| -1,438 | -759 |
The interest income and interest expense relate exclusively to financial assets (including cash) valued at amortized cost and to financial liabilities.
The capitalization rate considered in accordance with IAS 23 was 2.44 % on December 31, 2014 (previous year: 3.43 %).
Taxes paid or owed on income/revenues and deferred taxes are both stated as income taxes.
Any income obtained is stated as a negative amount.
| 2014 | 2013 | |
|---|---|---|
| Current taxes from consolidated companies |
1,451 | 1,052 |
| Deferred taxes from consolidated companies |
1,464 | 1,155 |
| Other taxes | 11 | 8 |
| Tax expense | 2,926 | 2,215 |
| 2014 | 2013 | |
|---|---|---|
| Deferred tax expenses or income from losses carried forward |
646 | 702 |
| Deferred tax expenses or income from temporary differences |
818 | 453 |
| Deferred tax expense | 1,464 | 1,155 |
The following is a breakdown of the effective tax burden which includes the German corporate income tax rate of 15.83 % (previous year: 15.83 %) including solidarity surcharge, and the applicable trade income tax rate of 12.25 % (previous year: 12.25 %), amounting to a combined statutory tax rate of 28.08 % (previous year: 28.08 %):
| Tax reconciliation | 2014 | 2013 |
|---|---|---|
| Net profit / loss for the year | ||
| before income taxes | 11,104 | 7,777 |
| Applicable tax rate | 28.08 % | 28.08 % |
| Expected tax expense / income | 3,118 | 2,184 |
| Reconciliation | ||
| Effects from deviating tax rates | -167 | -33 |
| Tax effect from non-deductible | ||
| expenses and tax-free earnings | 110 | -92 |
| Other | -135 | 156 |
| Actual tax expense / income | 2,926 | 2,215 |
| Group tax rate | 26.4 % | 28.5 % |
Income taxes directly recognized in equity amount to € 0 thousand (previous year: € 65 thousand) in the reporting year.
As per December 31, the following tax loss carry forwards existed (in € k):
| 2014 | 2013 | |
|---|---|---|
| Germany, corporate income tax | 8,180 | 10,393 |
| Germany, trade income tax | 6,264 | 8,673 |
| USA, federal level | 181 | 36 |
The tax loss carry forwards in Germany apply for an indeterminate period. Due to the statutory situation, out of the total loss carryforward, a maximum of € 1,000 thousand plus 40 % of the excess tax profit can be utilized per year.
The tax loss carry forwards in the USA can be utilized until 2028.
As at the reporting date Basler capitalized deferred tax assets on corporate income tax and trade income tax loss carryforwards amounting to € 2,062 thousand (previous year: € 2,708 thousand), since due to the tax four-year planning sufficiently taxable income is expected in the future. In this planning, we assume low double-digit sales growth rates as well as stable result margins. Of these, corporate income tax and trade income tax loss carry forwards extant in Germany, amounting to € 8.2 million and € 6.3 million can be utilized without limit; the remaining loss carry forwards in the USA expire after a maximum of fifteen years.
No active deferred taxes were recognized for loss carry forwards in the USA amounting to € 181 thousand.
The accumulated costs of production orders in progress on the reporting date amount to € 73 thousand (previous year: € 128 thousand), the accumulated profits reported amount to € 157 thousand (previous year: € 260 thousand).
In the year 2014, costs for guarantees amounted to € 197 thousand (previous year: € 246 thousand).
In fiscal year 2014, unscheduled value adjustments were made on capitalized product developments to the amount of € 704 thousand (previous year: € 608 thousand) which are discontinued products or for which no sufficient economic benefit is expected. The unscheduled depreciations on the capitalized developments were recorded in the reporting year with the other expense. The depreciations and unscheduled
| 2014 | 2013 | |
|---|---|---|
| depreciations are included in the following areas: Cost of service performed |
3,176 | 3,271 |
| Sales and marketing costs | 140 | 144 |
| General administration costs | 1,004 | 995 |
| Other expense | 1,019 | 1,014 |
| 5,339 | 5,424 |
| 2014 | 2013 | |
|---|---|---|
| Wages and salaries Social security contributions |
27,057 4,391 |
22,371 3,760 |
| 31,448 | 26,131 |
The expenses for the contribution-based pension schemes amounted to € 2,007 thousand (previous year: € 1,718 thousand). The employees in the group are for the most part insured under the mandatory statutory pension insurance scheme and are thus subject to a government contribution-based plan.
| 2014 | 2013 | |
|---|---|---|
| Expenses for raw, auxiliary, and operating supply items as well as purchased goods |
25,857 | 19,545 |
| Expenses for purchased services |
1,686 | 1,273 |
| 27,543 | 20,818 |
| 2014 | 2013 | |
|---|---|---|
| Earnings diluted / undiluted in € k |
8,178 | 5,562 |
| Weighted average number of ordinary shares |
3,219,331 | 3,281,312 |
| Earnings per Share (Euro) | 2.54 | 1.70 |
The calculation of the average number of shares outstanding was carried out according to a pro rata temporis weighting taking into account the acquired own shares.
As of December 31, 2014, Basler used fully depreciated fixed assets representing an acquisition value of € 15,029 thousand (previous year: € 8,303 thousand).
For more details about the development of fixed assets, we refer to the separate explanation.
The technical equipment, machines, and fixtures and fittings amounting to € 313 thousand (previous year € 338 thousand) are assigned as collaterals to credit institutions.
The purchase commitments for tangible assets amounted to € 1,775 thousand (previous year: € 233 thousand) as of December 31, 2014.
For the financial statements, the following intangible assets are of essential importance according to IAS 38.122b at the reporting date:
| Description of the Intangible Asset |
Book value 12/31/2014 (in € k) |
Remaining useful Lives (in Years) |
|
|---|---|---|---|
| Development of the racer line-scan camera line |
1,415 | 5 | |
| Expansion of the ace camera line with sensors of the CMOSIS company and the Camera Link interface |
1,036 | 6 | |
| Development of the ace camera line |
717 | 5 | |
| Expansion of the ace camera line by 1.3 & 2 MP sensors of the e2V company |
548 | 3 | |
| Expansion of the firmware functionality for the MK3 product platform |
482 | 4 |
As of December 31, 2013, the following intangible assets were important:
| Description of the Intangible Asset |
Book value 12/31/2013 (in € k) |
Remaining useful Lives (in Years) |
|---|---|---|
| Expansion of the ace camera line with sensors of the CMOSIS company and the Camera Link interface |
1,244 | 7 |
| Development of the ace camera line |
889 | 6 |
| Expansion of the firmware functionality for the MK3 product platform |
668 | 5 |
| Equipment of the IP BIP camera line with new |
||
| processor generation Development of internal production machine for |
439 | 4 |
| the manufacturing of the ace camera line |
402 | 6 |
The following deferred tax assets and liabilities apply to measurement or recognition inconsistencies of the individual balance sheet items:
| Deferred tax assets | 12/31/2014 | 12/31/2013 |
|---|---|---|
| From tax loss carry forwards |
2,062 | 2,708 |
| Inventories | 87 | 69 |
| Financial instruments | 364 | 288 |
| Other | 201 | 136 |
| Offsetting | -2,656 | -3,157 |
| 58 | 44 |
| Deferred tax liabilities | 12/31/2014 | 12/31/2013 |
|---|---|---|
| Capitalization of development |
4,513 | 3,756 |
| Receivables | 65 | 109 |
| Finance lease | 652 | 475 |
| Tangible assets | 63 | 0 |
| Other | 10 | 10 |
| Offsetting | -2,656 | -3,157 |
| 2,647 | 1,193 |
The inventories include the following:
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Finished products | 2,843 | 1,506 |
| Semifinished products | 1,545 | 1,140 |
| Raw materials, supplies, and operating materials |
7,822 | 6,597 |
| Merchandise | 340 | 352 |
| 12,550 | 9,595 |
As of December 31, 2014, unscheduled value adjustments were made on the inventories to the amount of € 635 thousand (previous year: € 858 thousand). Of which a decrease of € 223 thousand applied to fiscal year 2014 (previous year: a decrease of € 322 thousand).
Finished products and merchandize include devices made available to customers temporarily for testing, on loan, and for demonstration purposes worth € 220 thousand (previous year: € 212 thousand). This manner of reporting facilitates the handling of the future sale to the customer. Devices used for demonstration purposes over an extended period, e.g. for trade fairs and exhibitions, are stated under fixed assets and are depreciated over their useful lives amounting to three years.
Receivables from deliveries and services as well as from production orders were as follows:
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Receivables from manufacturing to order |
230 | 388 |
| Advance payments received for manufacturing to order |
-228 | -178 |
| 2 | 210 | |
| Receivables from deliveries and services |
6,961 | 6,668 |
| 6,963 | 6,878 |
Of the receivables from deliveries and services in the amount of € 6,961 thousand (previous year: € 6,668 thousand) € 6,961 thousand (previous year: € 6,668 thousand) are due within one year.
The values of the receivables from deliveries and services are adjusted by € 12 thousand (previous year: € 29 thousand). Value adjustments of receivables are maintained at Basler on separate accounts. Value adjustments are performed as far as the collectability of a receivable is in danger e.g. due to insolvency. The value adjustments have developed in the following way:
| 2014 | 2013 | |
|---|---|---|
| Status as of 01/01 | 29 | 23 |
| Exchange rate differences | 0 | 0 |
| Allocation | 41 | 10 |
| Consumption | 39 | 3 |
| Liquidation | 19 | 1 |
| Status as of 12/31 | 12 | 29 |
The aging profile of the receivables from deliveries and services after specific allowances is as follows:
| 2014 | 2013 | |
|---|---|---|
| Book value as of 12/31 | 6,961 | 6,668 |
| Of which as of 12/31 neither impaired nor past due |
6,132 | 5,171 |
| Of which not impaired and up to 60 days past due |
780 | 1,354 |
| Of which not impaired and more than 61 days past due |
49 | 143 |
The sum of advance payments received amounts to € 409 thousand (previous year: € 1,791 thousand), of which € 228 thousand (previous year: € 178 thousand) are deducted from the receivables arising from longterm production. The receivables from production orders are not impaired by specific allowances. There are no receivables past due that would require value adjustments.
The maximum default risk corresponds to the book values stated in the balance sheet of each financial asset (less value adjustments taken into account as at the balance sheet date, if applicable).
The fair values do not differ significantly from the book values.
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Derivative financial | ||
| instruments | 102 | 0 |
| Other | 249 | 217 |
| Other short-term financial | ||
| assets | 351 | 217 |
| Accrued expenses | 505 | 354 |
| Advance payments made | 2 | 590 |
| Other short-term assets | 507 | 944 |
| Total | 858 | 1,161 |
The fair values do not differ significantly from the book values. The maximum default risk corresponds to the book values stated in the balance sheet of each financial asset. The other current financial assets are not impaired by value adjustments. There are no receivables past due that would require value adjustments.
The tax refund claims relate to input tax amounting to € 336 thousand (previous year: € 356 thousand) and the reclaim of taxes paid in advance on income and profit amounting to € 7 thousand (previous year: € 36 thousand).
The fair values do not differ significantly from the book values. The maximum default risk corresponds to the book values stated in the balance sheet of each financial asset.
Cash and cash equivalents include cash in bank and cash in hand in the amount of € 12,812 thousand (previous year: € 9,665 thousand).
The company building and the company grounds in Ahrensburg are used within the framework of a lease agreement. The agreement is classified as a financing lease agreement. The book values at the end of the fiscal year are as follows:
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Land | 1,817 | 1,817 |
| Buildings | 14,191 | 14,883 |
| 16,008 | 16,700 |
The development is recorded separately in the fixed asset schedule.
The liabilities from finance lease are as follows:
| payments | Minimum lease | Cash value of the minimum lease payments |
|||
|---|---|---|---|---|---|
| 12/31/ 2014 |
12/31/ 2013 |
12/31/ 2014 |
12/31/ 2013 |
||
| With a residual term of up to one year |
2,215 | 2,213 | 2,154 | 2,151 | |
| With a residual term of more than one year and up to five years |
14,077 | 16,292 | 11,531 | 12,859 | |
| With a residual term of more than five years |
0 | 0 | 0 | 0 | |
| 16,292 | 18,505 | ||||
| Minus: Future financing costs: |
-2,607 | -3,495 | |||
| Cash value of the minimum lease payments |
13,685 | 15,010 | 13,685 | 15,010 | |
| Recorded in the group's annual balance sheet as |
|||||
| Short-term liabilities from financing lease |
2,154 | 2,151 | |||
| Long-term liabilities from financing lease |
11,531 | 12,859 |
Basler will receive at least the following rental payments from subleasing the office building in Ahrensburg under contracts that have been concluded and are non-cancellable:
| Fiscal year | |
|---|---|
| 2015 | 487 |
| 2016 - 2018 | 64 |
| From 2019 | - |
The earnings from subleases amounted to € 623 thousand in the reporting year (previous year: € 837 thousand). Basler has the option of purchasing the building at the end of the lease.
The interest rates applicable to the liabilities related to this finance lease were fixed on the day of the conclusion of the agreement. They amount to 6.22 % and 6.84 % for the different elements of the building.
Parts of the fixtures and fittings are used within the framework of an operating lease. The future rental and leasing payments based on non-cancellable operating leases and rentals amount to a minimum of:
Fiscal year
| 2015 | 783 |
|---|---|
| 2016 - 2018 | 490 |
| From 2019 | 180 |
Almost all rental and leasing options provide for final purchase options at market conditions. During the year under review, the rent/leasing expenses amounted to € 404 thousand (previous year: € 433 thousand).
The paid-up share capital of the company amounts to € 3,500,000 and is divided into 3,500,000 issued no-par-value shares. The shares are in bearer form. The number of shares in circulation as of January 1, 2014 amounted to 3,238,184 and on December 31, 2014, to 3,181,136. In the reporting year, 57,048 own shares were acquired.
The shares of Basler AG have been listed at the Frankfurt Stock Exchange since March 23, 1999.
Pursuant to § 4 clause (3) of the Basler AG articles of incorporation, the management board is authorized, subject to approval by the supervisory board, to increase the share capital by May 30, 2017, by issuing up to 1,750,000 new no-par-value bearer shares against cash and/or non-cash contributions either once or several times by a total of € 1,750,000.00. The shareholders shall be granted a subscription right for this purpose. However, the management board is authorized, subject to approval by the supervisory board, to exclude subscription rights of the shareholders for fractional amounts.
The results before and after taxes of the components of the residual total income are as follows:
| 12/31/2014 | 12/31/2013 | |||||
|---|---|---|---|---|---|---|
| Earnings before taxes |
Taxes | Net | Earnings before taxes |
Taxes | Net | |
| Currency conversion of foreign subsidiaries |
349 | 0 | 349 | -83 | 0 | -83 |
| Cash flow hedges |
0 | 0 | 0 | 233 | -65 | 168 |
| Total | 349 | 0 | 349 | 150 | -65 | 85 |
On June 5, 2014, a dividend was paid amounting to € 0.47 per share (total dividend: € 1,519 thousand).
Basler reports the following financial liabilities as at December 31, 2014 (in € k):
| Description | Interest condition |
Interest rate |
End of term |
Repayment amount |
|---|---|---|---|---|
| ERP bank loan, tranche III |
Fixed | 3.65 % | 03/31/2016 | 187 € k (previous year: 337 € k) |
| ERP bank loan, tranche IV |
Fixed | 4.60 % | 03/31/2016 | 313 € k (previous year: 562 € k) |
| ERP bank loan 2012, tranche I |
Fixed | 2.15 % | 12/30/2022 | 3,900 € k (previous year: 2,550 € k) |
| ERP bank loan 2012, tranche II |
Fixed | 2.45 % | 12/30/2022 | 3,900 € k (previous year: 2,550€ k) |
Furthermore, derivative financial liabilities of € 1,398 thousand (previous year: € 1,027 thousand), the shortterm repayment portion of the financial liabilities of € 888 thousand (previous year: € 400 thousand) as well as other financial liabilities of € 0 (previous year: € 114 thousand) are shown under other financial liabilities.
The fair values of the above financial liabilities, of the liabilities from deliveries and services, and of the other short-term liabilities, do not vary significantly from the reported book values.
| 01/01/ 2014 |
Allo cation |
Utiliza tions |
Liqui dation |
Currency differences |
12/31/ 2014 |
|
|---|---|---|---|---|---|---|
| Long-term provisions |
||||||
| Personnel costs |
515 | 281 | 0 | 0 | 0 | 796 |
| Long-term provisions |
515 | 281 | 0 | 0 | 0 | 796 |
| Short-term provisions |
||||||
| Personnel costs |
2.667 3.049 | -2.484 | -37 | 12 3.207 | ||
| Commissions | 37 | 26 | -38 | 0 | 3 | 28 |
| Warranty | 198 | 223 | -198 | 0 | 0 | 223 |
| Legal and consultancy costs |
125 | 102 | -93 | -21 | 3 | 116 |
| Other | 174 | 271 | -138 | -24 | 4 | 287 |
| Short-term provisions |
3.201 | 3.671 | -2.951 | -82 | 22 | 3.861 |
| Total | 3.716 3.952 | -2.951 | -82 | 22 4.657 |
The provisions for personnel costs were mainly made for variable salaries and for bonuses for the reporting year.
The short-term provisions are expected to be utilized in the course of one year.
As a company acting on global markets, Basler is exposed to various market risks. In order to reduce USD currency risks, Basler uses forward exchange contracts. As these dealings are intended as security for underlying operating transactions, their terms are less than one year in each case. As of the balance sheet date the following open forward exchange contracts existed:
| USD | 12/31/2014 | 12/31/2013 |
|---|---|---|
| Nominal value in € k | 3,971 | - |
| Foreign currency amount in k USD |
5,000 | - |
| Fair value in € k Positive |
- | - |
| Negative | -147 | - |
| JPY | 12/31/2014 | 12/31/2013 |
| Nominal value in € k | 3,200 | - |
| Foreign currency amount in k JPY |
450,000 | - |
| Fair value in € k | ||
| Positive | 102 | - |
The depiction of valuation units is not provided.
In 2011, an interest rate swap was concluded in order to hedge future credit transactions against interest rate increases. The hedging relationship was repealed in 2012. Valuation of the interest rate swap is carried out according to the mark-to-market method. Positive fair values are stated under short-term other assets and negative fair values under short-term other financial liabilities. The expense shown in the financial result resulting from valuation at fair value in fiscal year 2014 amounted to € 224 thousand (previous year: income € 511 thousand).
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Nominal value in € k | 9,394 | 10,000 |
| Fair value in € k | ||
| Positive | - | - |
| Negative | 1,251 | 1,027 |
In accordance with IFRS 7, the financial instruments are classified into the following valuation classes:
| Cate gory |
Significance | Valuation | |
|---|---|---|---|
| AfS | Available for Sale | Financial assets available for divestment | Fair value (without affecting net income against equity) |
| FAHfT | Financial Assets Held for Trading | Financial assets available for trading | Fair value (with effect on net income through profit or loss) |
| FLAC | Financial Liabilities Measured at Amortised Cost |
Financial liabilities measured at amortized cost |
At amortized cost |
| FVTPL | At Fair Value Through Profit or Loss | At fair value through profit or loss | Fair value (with effect on net income through profit or loss) |
| HtM | Held to Maturity | Financial investments held to maturity | At amortized cost |
| LaR | Loans and Receivables | Loans and receivables | At amortized cost |
The book values of the financial instruments as of December 31, 2014 are as follows:
| Category of measurement |
Fair value, affecting |
||||
|---|---|---|---|---|---|
| according to | Book | Amortized | net | Fair | |
| IAS 39 | value | costs | income | value | |
| Assets | |||||
| Remaining financial assets | AfS | 5 | 5 | ||
| Long-term financial assets | 5 | 5 | |||
| Receivables from deliveries and services | LaR | 6,961 | 6,961 | ||
| Receivables from production orders | LaR | 2 | 2 | ||
| Short-term financial assets | 6,963 | 6,963 | |||
| Short-term derivative assets | FVTPL | 102 | 102 | 102 | |
| Remaining other short-term financial assets | LaR | 249 | 249 | ||
| Other short-term financial assets | 351 | 351 | |||
| Liquid assets | LaR | 12,812 | 12,812 | ||
| Cash and cash equivalents | 12,812 | 12,812 | |||
| 20,131 | |||||
| Liabilities | |||||
| Liabilities to credit institutions | FLAC | 7,413 | 7,413 | ||
| Other financial liabilities | FLAC | 0 | 0 | ||
| Liabilities from finance lease | FLAC | 11,531 | 11,531 | ||
| Long-term financial liabilities | 18,944 | 18,944 | |||
| Other financial liabilities | FLAC | 888 | 888 | ||
| Short-term derivative assets | FVTPL | 1,398 | 1,398 | ||
| Liabilities from deliveries and services | FLAC | 2,277 | 2,277 | ||
| Liabilities from finance lease | FLAC | 2,154 | 2,154 | ||
| Remaining other short-term financial liabilities | FLAC | 1,369 | 1,369 | ||
| Short-term liabilities | 8,086 | 8,086 | |||
| 27,030 |
The valuation levels of the financial instruments valued at fair value are as follows:
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial liabilities of "Market value through profit or loss" |
||||
| Short-term derivative assets | 0 | 102 | 0 | 102 |
| Total | 0 | 102 | 0 | 102 |
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets of "Market value affecting profit and loss" |
||||
| Short-term derivative assets | 0 | 1,398 | 0 | 1,398 |
Comparative figures as of December 31, 2013:
| Category of measurement according to IAS 39 |
Book value | Amortized costs |
Fair value, affecting net income |
Fair value |
|
|---|---|---|---|---|---|
| Assets | |||||
| Remaining financial assets Long-term financial assets |
AfS | 5 5 |
5 | 5 | |
| Receivables from deliveries and services Receivables from production orders |
LaR LaR |
6.668 210 |
6.668 210 |
||
| Short-term financial assets | 6.878 | 6.878 | |||
| Short-term derivative assets Remaining other short-term financial assets Other short-term financial assets |
FVTPL LaR |
0 217 217 |
217 | 0 217 |
|
| Liquid assets Cash and cash equivalents |
LaR | 9.665 9.665 |
9.665 | 9.665 | |
| 16.765 | |||||
| Liabilities | |||||
| Liabilities to credit institutions Other financial liabilities Liabilities from finance lease |
FLAC FLAC FLAC |
5.599 8 12.859 18.466 |
5.599 8 12.859 |
18.466 | |
| Long-term financial liabilities | FLAC | 513 | 513 | ||
| Other financial liabilities Short-term derivative assets Liabilities from deliveries and services Liabilities from finance lease |
FVTPL FLAC FLAC FLAC |
1.027 1.132 2.151 2.355 |
1.132 2.151 2.355 |
1.027 | |
| Remaining other short-term financial liabilities Short-term liabilities |
7.178 | 7.178 |
The valuation levels of the financial instruments valued at fair value are as follows :
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial liabilities of "Market value affecting profit and loss" category |
||||
| Short-term derivative assets | 0 | 1,027 | 0 | 1,027 |
| Total | 0 | 1,027 | 0 | 1,027 |
For the calculation of the fair value of derivative instruments, discounted cash flow analyses are applied to derivatives without optional components using corresponding interest yield curves to the instruments' maturity and option pricing models are applied to derivatives with optional components. Forward foreign exchange transactions are valued based on listed forward rates and interest yields curves that are derived from listed market interest rates in view of the contracts' maturity. Interest rate swaps are valued at the cash value of the estimated future cash flows. The discounting took place using the pertinent interest yield curves derived from listed interest rates. The fair value of other financial assets and liabilities is determined in accordance with generally accepted measurement models based on discounted cash flow analyses.
Please refer to note 13 for the recording of impairments and net profits / losses of the stated financial assets and financial liabilities.
Basler continuously checks the creditworthiness of its customers by employing internal and external evaluations. In addition, the risk associated with receivables from deliveries and services is reduced by the fact that the company has a diverse customer base. Furthermore, the company operates a clearly defined process to follow up on outstanding receivables. A credit line structure supported by the ERP system with documented escalation levels is used to limit the risk even further. Please refer to notes 13, 14, 15, 19, and 21 for statements of the maximum default risks.
All longer-term financial liabilities stated as of the balance sheet date are valued at amortized cost and are not subject to interest rate risk within the meaning of IFRS 7 due to existing fixed-interest agreements. The sensitivity analysis in connection with the interest rate risk from the interest rate swap showed a positive effect on earnings before taxes of € 252 thousand resulting from an increase of the interest yield curve by 0.5 percentage points and a direct negative effect on earnings before taxes of € 102 thousand resulting from a decrease of the interest yield curve by 0.5 percentage points.
Basler manages its capital with the aim of maximizing the earnings of its stakeholders by optimizing the ratio of equity capital to borrowed capital.
However, it must furthermore be ensured that Basler possesses sufficient reserves to also enable shortterm growth. This goal is managed using the financial reserves key figure.
This key figure is calculated from the ratio of borrowed capital plus unused credit lines to short-term assets less liquid assets.
A value of 125 % is targeted.
| 12/31/2014 | 12/31/2013 | |
|---|---|---|
| Borrowed capital without finance lease and deferred |
||
| taxes | 18,703 | 14,588 |
| Unused credit lines | 2,400 | 3,600 |
| Subtotal: | 21,103 | 18,188 |
| Short-term receivables | 6,963 | 6,878 |
| Inventories | 12,550 | 9,595 |
| Remaining receivables and | ||
| other financial assets and | ||
| accruals and deferrals | 858 | 1,161 |
| Liquid assets | -12,812 | -9,665 |
| Subtotal | 7,559 | 7,969 |
| Financial reserves | 279 % | 228 % |
This strategy was not changed compared to the previous year.
On the reporting date, Basler had access to credit lines amounting to € 2,400 thousand (previous year: € 3,600 thousand). These were not used, as in the previous year.
The availability of credit lines and the granting of bank loans are partly tied to compliance with certain financial key figures. As in the previous year, Basler AG complied with the key figures.
The following maturity analysis of financial liabilities (contractually agreed, non-discounted payments) indicates the influence on the group's liquidity (in € k):
| 2015 | 2016 | 2017 to 2019 |
From 2020 |
|
|---|---|---|---|---|
| Bank debt | 1,075 | 754 | 1,895 | 5,549 |
| Liabilities from deliveries and services |
2,277 | - | - | - |
| Other current financial and tax liabilities Liabilities from finance |
3,288 | - | - | - |
| lease | 2,215 | 2,218 | 11,859 | 0 |
As per December 31, 2013, the following maturity structure ensued:
| 2016 | From | |||
|---|---|---|---|---|
| 2014 | 2015 | to 2018 | 2019 | |
| Bank debt | 549 | 848 | 1,360 | 4,036 |
| Liabilities from | ||||
| deliveries and services | 1,132 | - | - | - |
| Other current financial | ||||
| and tax liabilities | 2,355 | - | - | - |
| Liabilities from finance | ||||
| lease | 2,213 | 2,215 | 14,077 | 0 |
In 2009, Basler decided to strategically focus on the camera business. Various product lines of the solutions segment were sold or discontinued. Furthermore, the restructuring to a functional organization was finished in 2012. As a result of these measures, within the internal reporting the discontinuing solutions segment was not reported or managed separately.
Customers of Basler are global players. In the following statement of turnover per country, the product's country of installation is considered the target country. If the country of installation is not known, the last known country of delivery is considered.
| 2014 | 2013 | |
|---|---|---|
| Germany | 8,991 | 7,822 |
| EMEA | 24,367 | 18,385 |
| America | 17,303 | 14,455 |
| Asia | 28,579 | 24,448 |
| 79,240 | 65,110 |
Sales revenues amounting to € 8.5 million, thus more than 10 % of the total sales revenues were generated with only one customer in 2014.
The long-term assets of the Basler group are held in the following countries:
| 2014 | 2013 | |
|---|---|---|
| Germany | 38.045 | 35.156 |
| America | 91 | 23 |
| Asia | 622 | 337 |
| 38.758 | 35.516 |
The average number of employees in each functional area is shown in the table below:
| 2014 | 2013 | |
|---|---|---|
| Production | 98 | 79 |
| Sales | 121 | 100 |
| Development | 100 | 89 |
| Administration | 86 | 84 |
| 405 | 352 |
Basler is strongly committed to providing a family friendly, flexible working environment. One indication of this is the high percentage of employees who work under a wide variety of part-time schemes. Expressed in terms of equivalents of full-time positions this breaks down as follows:
| 2014 | 2013 | |
|---|---|---|
| Production | 92 | 75 |
| Sales | 113 | 95 |
| Development | 94 | 84 |
| Administration | 75 | 71 |
| 374 | 325 |
The remuneration paid to BDO AG Wirtschaftsprüfungsgesellschaft is separated into the following categories:
| 2014 | 2013 | |
|---|---|---|
| Audit fees | 67 | 68 |
| Tax consultancy services | 48 | 50 |
| Other services | 37 | 0 |
| 152 | 118 |
In fiscal year 2014, there were no transactions with related parties except for the remuneration of the management board and the remuneration of the supervisory board.
Dr. Dietmar Ley CEO is responsible for research and development as well as for personnel and organizational development, John P. Jennings is responsible for sales, market communications, and the subsidiaries, Arndt Bake is responsible for marketing and new business, and Hardy Mehl for production, purchase and logistics, finance, legal and investor relations.
In 2014, the supervisory board consisted of the following members:
Norbert Basler Supervisory board chairman, entrepreneur
Prof. Dr. Eckart Kottkamp Supervisory board vice-chairman, consultant
Konrad Ellegast
Regular supervisory board member, consultant
Additional mandates held by the supervisory board members in 2013, compliant with § 285 No. 10 HGB:
Member of the supervisory board, Plato AG, Lübeck
Mackprang Holding GmbH & Co. KG, Hamburg
Chairman of the advisory board, ACTec GmbH, Freiberg
Chairman of the supervisory board, Lloyd Fonds AG, Hamburg
Member of the supervisory board, Elbphilharmonie Hamburg Bau GmbH & Co KG, Hamburg
Member of the supervisory board, KROMI Logistik AG, Hamburg
Member of the advisory board, C. Mackprang Jr. GmbH & Co. KG, Hamburg
Chairman of the advisory board, Dichtungstechnik G. Bruss GmbH & Co. KG, Hoisdorf
As of January 1, 2011, the remuneration model of the management board was changed by the implementation of a sustainability clause (see Remuneration Report in the management report). According to this, the variable claims acquired in one fiscal year are paid over a period of three years and during this period of time are subject to the
intermediate risk of substantial decreases due to subsequent worsening of the situation.
In 2014, a total of € 1,256,360.49 was paid out allocated as follows:
| 2014 | Dr. Dietmar Ley | John P. Jennings |
Arndt Bake | Hardy Mehl |
|---|---|---|---|---|
| Payout | Chairman of the Management Board (CEO) |
Management Board Sales (CCO) |
Management Board Marketing (CMO) |
Management Board Finance (CFO) and Operations (COO) |
| In Management Board | since 1996 | since 2005 | since 2011 | since 01/01/2014 |
| Fixed remuneration | 262,650.00 | 217,209.26 | 181,687.56 | 172,500.00 |
| Additional benefits | 16,394.15 | 46,766.53 | 20,455.58 | 12,388.45 |
| Total | 279,044.15 | 263,975.79 | 202,143.14 | 184,888.45 |
| One-year variable remuneration | 0.00 | 0.00 | 0.00 | 24,609.00 |
| Perennial variable remuneration | 118,029.01 | 92,259.70 | 83,555.68 | 0.00 |
| Payout bonus bank | 118,029.01 | 92,259.70 | 83,555.68 | 0.00 |
| Other | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 397,073.16 | 356,235.49 | 285,698.82 | 209,497.45 |
| Pension expenses | 498.12 | 6,361.21 | 498.12 | 498.12 |
| Total Payout | 397,571.28 | 362,596.70 | 286,196.94 | 209,995.57 |
The claim to variable compensation components of the financial year 2014 amounting to € 735,536.79 was transferred to the bonus bank and will be paid out within the next years according to the process described in the management report. In 2014, the total granted benefits for the management board amounted to € 1,673,443.89, and are allocated as follows:
| 2014 | Dr. Dietmar Ley | John P. Jennings |
Arndt Bake | Hardy Mehl |
|---|---|---|---|---|
| Granted Benefits | Chairman of the Management Board (CEO) |
Management Board Sales (CCO) |
Management Board Marketing (CMO) |
Management Board Finance (CFO) and Operations (COO) |
| In Management Board | since 1996 | since 2005 | since 2011 | since 01/01/2014 |
| Fixed Remuneration | 262,650.00 | 217,209.26 | 181,687.56 | 172,500.00 |
| Additional Benefits | 16,394.15 | 46,766.53 | 20,455.58 | 12,388.45 |
| Total | 279,044,15 | 263,975,79 | 202,143.14 | 184,888.45 |
| One-year variable remuneration | 0.00 | 0.00 | 0.00 | 0.00 |
| Perennial variable remuneration | 226,080.37 | 204,583.63 | 156,390.54 | 148,482.25 |
| of which transferred to the bonus bank |
226,080.37 | 204,583.63 | 156,390.54 | 148,482.25 |
| Total | 505,124.52 | 468,559.42 | 358,533.68 | 333,370.70 |
| Pension expenses | 498.12 | 6,361.21 | 498.2 | 498.12 |
| Total remuneration | 505,622.64 | 474,920.63 | 359,031.80 | 333,868.82 |
| Possible minimal amount – reduction bonus bank |
-87,550.00 | -79,225.35 | -60,562.50 | -57,500.00 |
| Possible maximum amount – transfer to bonus bank |
350,200.00 | 316,901.41 | 242,250.00 | 230,000.00 |
| 2013 | Dr. Dietmar Ley | John P. Jennings | Arndt Bake |
|---|---|---|---|
| Payout | Chairman of the Management Board (CEO) |
Management Board Sales (CCO) |
Management Board Marketing (CMO) |
| In Management Board | since 1996 | since 2005 | since 2011 |
| Fixed remuneration | 255,000.00 | 203,164.67 | 181,111.00 |
| Additional benefits | 16,563.63 | 41,329.79 | 18,677.06 |
| Total | 271,563.63 | 244,494.46 | 199,788.06 |
| One-year variable remuneration | 0.00 | 0.00 | 0.00 |
| Perennial variable remuneration | 96,918.26 | 83,187.25 | 68,432.93 |
| Payout bonus bank | 96,918,26 | 83,187,25 | 68,432.93 |
| Total | 368,481.89 | 327,681.71 | 268,220.99 |
| Pension expenses | 484,32 | 6,588,36 | 484,32 |
| Total Payout | 368,966.21 | 334,270.07 | 268,705.31 |
In 2013, a total of € 971,941.59 was paid out allocated as follows:
The claim to variable compensation components of the financial year 2013 amounting to € 397,699.77 was transferred to the bonus bank and will be paid out within the next years according to the process described in the management report. In 2013, the total remuneration of the management board amounted to € 1,121,102.92, allocated as follows:
| 2013 | Dr. Dietmar Ley | John P. Jennings | Arndt Bake |
|---|---|---|---|
| Granted Benefits | Chairman of the Management Board (CEO) |
Management Board Sales (CCO) |
Management Board Marketing (CMO) |
| In Management Board | since 1996 | since 2005 | since 2011 |
| Fixed remuneration | 255,000.00 | 203,164.67 | 181,111.00 |
| Additional benefits | 16,563.63 | 41,329.79 | 18,677.06 |
| Total | 271,563.63 | 244,494.46 | 199,788.06 |
| One-year variable remuneration | 0.00 | 0.00 | 0.00 |
| Perennial variable remuneration | 160,103.49 | 123,887.15 | 113,709.13 |
| of which transferred to the bonus bank | 160,103.49 | 123,887.15 | 113,709.13 |
| Total | 431,667.12 | 368,381.61 | 313,497.19 |
| Pension expenses | 484.32 | 6,588.36 | 484.32 |
| Total Remuneration | 432,151.44 | 374,969.97 | 313,981.51 |
| possible minimal amount– reduction bonus bank |
-85,000.00 | -67,721.37 | -60,370.34 |
| possible maximum amount– transfer to bonus bank |
340,000.00 | 270,885.48 | 241,481.34 |
In the case of a proper termination of office as member of the management board, one third each of a positive balance of the remaining performance-related compensation is paid per year in the course of the following three years.
In the case of premature termination of office as member of the management board possible payments are limited to the value of two annual remunerations and will not exceed the total of claims resulting from the remaining term of the employment contract.
In November 2012, the contracts of Arndt Bake and John P. Jennings and in January 2013, the contract of Dr. Dietmar Ley were amended so that in the case of termination by a member of the management board with good cause no more payments will be made to the member of the management board.
The total remuneration of the members of the supervisory board amounted to € 54 thousand in the year 2014.
| Fixed remuneration |
Performance related remuneration for 2014 |
Total 2014 | |
|---|---|---|---|
| Norbert Basler | 24,000.00 | 0.00 | 24,000.00 |
| Prof. Dr. Eckart Kottkamp |
18,000.00 | 0.00 | 18,000.00 |
| Konrad Ellegast | 12,000.00 | 0.00 | 12,000.00 |
The total remuneration of the members of the supervisory board amounted to € 54 thousand in the year 2013.
| Fixed remuneration |
Performance related remuneration for 2013 |
Total 2013 | |
|---|---|---|---|
| Norbert Basler | 24,000.00 | 0.00 | 24,000.00 |
| Prof. Dr. Eckart Kottkamp |
18,000.00 | 0.00 | 18,000.00 |
| Konrad Ellegast | 12,000.00 | 0.00 | 12,000.00 |
As at the reporting date, the members of the management board held the following number of shares:
| 12/31/2014 Number of shares |
12/31/2013 Number of shares |
|
|---|---|---|
| Dr. Dietmar Ley | 144,794 | 144,358 |
| John P. Jennings | 5,500 | 5,500 |
| Arndt Bake | 700 | 700 |
| Hardy Mehl | 450 | n.a. |
As at the reporting date, the members of the supervisory board held the following number of shares:
| 12/31/2014 Number of shares |
12/31/2013 Number of shares |
|
|---|---|---|
| Norbert Basler | 1,816,891 | 1,816,891 |
| Prof. Dr. Eckart Kottkamp |
- | - |
| Konrad Ellegast | 1,280 | 1,280 |
In addition to Basler AG, the following companies are included in the group's annual balance sheet by way of full consolidation due to extant voting majorities:
| Company name | Proportion of stake in % |
|---|---|
| Basler Inc., Exton/USA | 100 |
| Basler Asia Pte. Ltd., Singapore | 100 |
| Basler Vision Technologies Taiwan Inc., Jhubei City/Taiwan |
100 |
| Beruf und Familie Stormarn GmbH, Bad Oldesloe |
20 |
Further participating interests are not held.
The company has made its Declaration of Compliance with the German Corporate Governance Code which is mandatory under § 161 of the German Stock Corporation Act (AktG). The declaration was made accessible to the shareholders on the company's website at www.baslerweb.com.
The annual balance sheet is expected to be released for publication by the supervisory board on March 17, 2015.
The management board recommends the distribution of a dividend amounting to € 0.70 per share corresponding to an amount of € 2,226,795.20.
Ahrensburg, March 5, 2015
Management Board
Dr. Dietmar Ley John P. Jennings
(CEO) (CCO)
Arndt Bake Hardy Mehl (CMO) (CFO/COO)
We have audited the consolidated financial statements of Basler Aktiengesellschaft, Ahrensburg, — consisting of balance sheet, profit and loss statement, statement of comprehensive income, statement of changes in equity, cash flow statements, and notes — and the group management report for the business year from January 1, 2014 to December 31, 2014. The preparation of the consolidated financial statements and the group management report in accordance with IFRS, as adopted by the EU, and the additional provisions stated in Section 315a Para. 1 HGB are the responsibility of the company's legal representatives. It is our responsibility to express an opinion on the consolidated financial statements and the group management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with Section 317 HGB and the German standards of proper auditing of financial statements as established by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the audit such that inaccuracies and infringements significantly affecting the presentation of the net assets, financial position, and results of operations in the consolidated financial statements in accordance with German principles of proper accounting 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 evaluations of 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 accounting information of the sections included in consolidation, the determination of the companies to be included in consolidation, the accounting and consolidation principles used and significant estimates made by the legal representatives, 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 results of our audit the consolidated financial statements are in compliance with the IFRS, as adopted by the EU, and the additional provisions stated in Section 315a Para. 1 HGB and give a true and fair view of the net assets, financial position, and results of operations of the group in accordance with German principles of proper accounting. The group management report is in accordance with the annual financial statements and provides on the whole a suitable understanding of the group's position and suitably presents the opportunities and risks of future development.
We have issued the above report on the audit of the consolidated financial statements and the group management report for the fiscal year from January 1, 2014, to December 31, 2014, of Basler Aktiengesellschaft, Ahrensburg, in accordance with applicable legal provisions and German principles of proper accounting for audits of consolidated financial statements.
Lübeck, March 6, 2015
BDO AG Wirtschaftsprüfungsgesellschaft
Herbers ppa. Janitschke Auditor Auditor
We affirm to the best of our knowledge that the consolidated financial statements, in accordance with the accounting principles applicable to annual reporting, provide a true and fair view of the group's asset, financial, and earnings situation and that the annual group management report represents a true and fair picture of the course of business, including the operating result, and the group's financial situation as well as a description of the essential opportunities and risks concomitant with the expected development of the group during the remainder of the fiscal year.
Ahrensburg, March 5, 2015
The Management Board
Dr. Dietmar Ley John P. Jennings
(CEO) (CCO)
Arndt Bake Hardy Mehl
(CMO) (CFO/COO)
| Date | Venue | |
|---|---|---|
| 05/06/2015 | Publication 3-month report 2015 | Ahrensburg, Germany |
| 05/21/2015 | Shareholders' meeting 2015 | Hamburg, Germany |
| 08/05/2015 | Publication 6-month report 2015 | Ahrensburg, Germany |
| 11/04/2015 | Publication 9-month report 2015 | Ahrensburg, Germany |
| 11/23-25/2015 | Deutsches Eigenkapitalforum 2015 (German equity forum) |
Frankfurt am Main, Germany |
| Date | Venue | |
|---|---|---|
| 03/17-19/2015 | Vision China, Shanghai / SEMICON China | Shanghai, China |
| 03/18-20/2015 | Korea Vision Show / Automation World | Seoul, Korea |
| 03/23-26/2015 | Automate 2015 | Chicago, USA |
| 04/23-27/2015 | Taiwan Kaohsiung Industrial Automation Exhibition | Kaohsiung, Taiwan |
| 05/19-20/2015 | NEW-TECH 2015 EXHIBITION | Tel Aviv, Israel |
| 06/10-12/2015 | Exhibition on Sensing via Image Information Japan | Yokohama, Japan |
| 06/24-27/2015 | Assembly Technology Thailand | Bangkok, Thailand |
| 07/01-03/2015 | Vision China, Shenzhen | Shenzhen, China |
| 08/27-30/2015 | Taipei Int'l Industrial Automation Exhibition | Taipei, Taiwan |
| October 2015 | AOI Forum & Show Taiwan | Hsinchu, Taiwan |
| 010/14-16/2015 | Vision China, Beijing | Beijing, China |
| 11/03-07/2015 | China International Industry Fair | Shanghai, China |
| 11/18-19/2015 | All-over-IP Expo 2015 | Moscow, Russia |
| 11/18-21/2015 | Metalex Thailand | Bangkok, Thailand |
| 12/02-04/2015 | International Technical Exhibition on Image Technology and Equipment Japan |
Yokohama, Japan |
BASLER AG An der Strusbek 60-62 22926 Ahrensburg Germany Tel. +49 4102 463 0 Fax +49 4102 463 109 [email protected]
BASLER, INC. 855 Springdale Drive, Suite 203 Exton, PA 19341 USA Tel. +1 610 280 0171 Fax +1 610 280 7608
BASLER ASIA PTE. LTD. 35 Marsiling Industrial Estate Road 3 #05-06 Singapore 739257 Tel. +65 6367 1355 Fax +65 6367 1255 [email protected]
TAIWAN INC. No. 21, Sianjheng 8th St. Hsinchu County 30268 Taiwan/R.O.C. Fax +886 3 5583956 [email protected]
BASLER KOREA REPRESENTATIVE OFFICE Tel. +82 707 1363 114 Fax +82 707 0162 705
BASLER CHINA (SHANGHAI) REPRESENTATIVE OFFICE Tel. +86 21 6230 2160
BASLER CHINA (SHENZHEN)
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.