Berentzen-Gruppe AG

Quarterly Report • Aug 13, 2019

GROUP HALF-YEARLY FINANCIAL REPORT JANUARY TO JUNE 2019

Key Figures

Key figures of the Berentzen Group

		HY 1 2019	HY 1 2018	Change
		or 06/30/2019	or 06/30/2018	2019 / 2018
Consolidated revenues excl. alcohol tax	EURm	79.2	78.4	+ 1.1 %
Spirits segment	EURm	39.8	40.7	- 2.3 %
Non-alcoholic Beverages segment	EURm	25.3	24.1	+ 4.8 %
Fresh Juice Systems segment	EURm	9.9	9.4	+ 6.1 %
Other segments	EURm	4.3	4.2	+ 1.2 %
Total operating performance	EURm	80.5	79.6	+ 1.2 %
Contribution margin after marketing budgets	EURm	31.2	29.9	+ 4.4 %
Consolidated EBITDA	EURm	9.0	8.2	+ 10.8 %
Consolidated EBITDA margin	%	11.4	10.4	+ 1.0 PP1)
Consolidated EBIT	EURm	5.0	4.6	+ 10.1 %
Consolidated EBIT margin	%	6.3	5.8	+ 0.5 PP1)
Consolidated profit	EURm	2.8	2.7	+ 3.7 %
Operating cash flow	EURm	5.8	7.3	- 21.3 %
Cash flow from investing activities	EURm	- 2.6	- 3.6	+ 29.7 %
Free cash flow2)	EURm	- 5.0	- 3.7	- 35.4 %
Consolidated equity ratio	%	35.4	32.43)	+ 3.0 PP1)
Employees	Total	495	482	+ 2.7 %

1) PP = percentage points.

2) Cash flow from operating activities plus cash flow from investing activities.

3) 12/31/2018.

Key figures for the Berentzen common share

		HY 1 2019	HY 1 2018	Change
		or 6/30/2019	or 6/30/2018	2019 / 2018
Berentzen common share (ISIN DE0005201602, WKN 520160) Share price / XETRA	EUR / share	6.26	7.73	- 19.0 %
Market capitalisation	EURm	58.8	72.6	- 19.0 %
Dividend	EUR / share	0.28	0.22	+ 27.3 %

Content

• 4 Letter to the Shareholders
• 5 Interim group management report
• 5 Underlying principles of the corporate group
• 6 Economic report
• 16 Report on risks and opportunities
• 16 Forecast report

20 Consolidated half-yearly financial statements

• 20 Consolidated Statement of Financial Position
• 21 Consolidated Statement of Comprehensive Income
• 22 Consolidated Statement of Changes in Shareholders' Equity
• 22 Abridged Consolidated Cash Flow Statement
• 23 Abridged notes to the consolidated financial statements

36 Declarations and Other Information

• 36 Declaration by the legal representatives
• 37 Information about the publisher

A. Letter to the Shareholders

With the Spirits, Non-alcoholic Beverages and Fresh Juice Systems segments, the Berentzen Group now takes care of its consumers for almost any occasion and virtually any time of day with modern and innovative drinks concepts. This broad business approach and a permanent power to change puts the Berentzen Group in a robust and reliable position, even in more challenging economic times. The Group is focusing on sustainable, profitable growth. This is highlighted by the figures for the first half of the 2019 financial year, but also by the development that we have been undergoing for roughly two years now as part of our well-communicated journey of transformation. Therefore, we are confident that this positive development will be reflected in the share price of Berentzen-Gruppe Aktiengesellschaft in the foreseeable future.

Today, we can look back at six successful months. We achieved growth in our three key performance indicators – consolidated revenues, adjusted consolidated EBIT and adjusted consolidated EBITDA. We are especially proud of having increased our adjusted EBIT once again by 10.1% and our adjusted EBITDA even by 10.8% compared to the previous-year period. We noted a small increase of 1.1% in our revenues. The disproportionately strong rise in our two earnings KPIs by comparison is chiefly attributable to significant growth in our gross profit. Our gross profit margin climbed by 1.4 percentage points to 46.5% accordingly compared to the first half of the 2018 financial year. At the same time, our adjusted EBIT margin improved by 0.5 percentage points to 6.3%.

These figures are indicative of the substantial improvement in profitability. This development is evident from the comparison of the first half of the 2019 financial year with the previous-year period, but it also applies to the entire period of our transformation process to date, which started almost two years ago. We have often said that we want to raise our value added by focusing more on high-margin products and streamlining our portfolio. We are now starting to see the fruits of this approach, and so we will continue on this path.

Taking a look at our individual segments, we are especially delighted that our Fresh Juice Systems segment returned a 6.1% rise in revenues in the first six months of this year. This means that the segment is recovering at pace. Unit sales growth was recorded for all system components, from fruit presses to oranges and bottling systems. The Non-alcoholic Beverages segment likewise noted a 4.8% growth in revenues. Once again, this success was due primarily to the performance of our Mio Mio brand. Sales of the products distributed under this brand again rose by in excess of 34% from an already high level. Business with our own mineral waters also developed positively in the first half of the year. By contrast, we were confronted with a marginal slide in revenues in the Spirits segment, down 2.3%. We are still operating in a highly competitive market here, and are responding accordingly: We have streamlined our product portfolio by discontinuing unprofitable articles and have consciously reduced the number of marketing campaigns that are too aggressive on price and thus burden earnings. That is also part of our strategy, which prioritises an increase in relative earnings per unit.

We expect revenues to develop more dynamically in the second half of the financial year. We were aware from the very beginning that the products Berentzen Signature and Kräuterbraut launched as part of our innovation offensive in the second quarter of 2019 would initially need intensive listing and distribution expansion before they and other new products could impact positively on revenues from the second half of the year onward. To achieve this and ensure lasting success, we will invest more heavily in marketing, personnel and technology in the coming months, as announced.

In the 2018 Annual Report, we told you that it is our goal for 2019 to generate higher revenues and a continued strong operating result or EBIT. The mid-year results for 2019 show that we are well on the way to achieving this goal. Our success has spurred us to continue on our current trajectory of an exciting yet solid company with lasting growth. We would be delighted for you to continue to place your trust in us and accompany us on this joyful journey.

Sincerely yours,

Oliver Schwegmann Ralf Brühöfner

Executive Board member Executive Board member

B. Interim group management report

(1) Underlying principles of the corporate group

The Berentzen Group is one of the leading beverage groups in Germany and simultaneously one of the country's oldest producers of spirits with a history going back over 250 years. Berentzen-Gruppe Aktiengesellschaft based in Haselünne, Germany, is the ultimate parent of the Berentzen Group, which consists of more than 20 domestic and international subsidiaries as well as the parent company. The capital stock of Berentzen-Gruppe Aktiengesellschaft is divided into 9.6 million no-par shares of common stock which are listed on the regulated market of the Frankfurt Stock Exchange (General Standard) under ISIN DE0005201602 and WKN 520160.

(2) Economic report

(2.1) General economic and industry-specific framework conditions

General economic environment

In its World Economic Outlook Update issued in July 2019, the International Monetary Fund (IMF) reported restrained growth in the global economy and made a corresponding downward adjustment to its forecast for global economic growth anticipated in the current year. As causes of the dampened growth rate, the IMF names in particular the conflicts between the United States of America and China and the associated increase in customs duties and the uncertainty surrounding Brexit. At the beginning of the year, the German Institute for Economic Research (DIW Berlin) reported an increase in the rate of growth in the global economy in comparison to the end of 2018, but similarly points to existing uncertainties, specifically arising from trade conflicts and protectionism.

The German economy saw only slight growth at the beginning of 2019. As the German Federal Statistical Office announced in May, gross domestic product (GDP) adjusted for seasonal, price and calendar reasons was 0.4 % higher than the figure for the previous quarter. This development can be attributed primarily to positive stimuli from domestic sources. Specifically investments and consumer spending saw strong gains on the previous quarter. In contrast, foreign trade proved to be rather mixed.

Developments on the drinks market

According to figures from the German Federal Statistical Office, the change in consumer prices in Germany was between 1.3 % and 2.0 % overall in the first six months of 2019 compared with the equivalent months in the previous year, with prices in the "Alcoholic, beverages and tobacco" category that is important for the Berentzen Group rising at a faster rate. The inflation rates in this area were between 2.1 % and 3.0 % over the equivalent period last year. On the other hand, price rises were less marked in the "Food and nonalcoholic beverages" category, with inflation in this area fluctuating between 0.5 % and 1.3 %.

Figures published by The Nielsen Company (Nielsen), an independent market researcher, show that domestic sales of spirits in the first half of the current year were below the level recorded in the same period last year. In the German food retail trade and drugstores segment, the sales volume fell by 2.3 %, whereas revenues rose by 0.4 %, from EUR 1.97 billion to EUR 1.98 billion. Accordingly, 245.9 million 0.7-litre bottles (251.7 million 0.7-litre bottles) were sold through this important sales channel for the Berentzen Group. According to Nielsen, 109.1 million 0.7-litre bottles (116.8 million 0.7-litre bottles) of private-label products were sold through this channel between January and June 2019, while the share of total revenues declined from EUR 0.67 billion to EUR 0.64 billion at the same time.

In the market for non-alcoholic beverages, carbonated soft drinks (CSD) benefited from the extraordinarily hot summer in 2018. According to figures published in February 2019 by the Wirtschaftsvereinigung Alkoholfreie Getränke (wafg), a German non-alcoholic beverage industry association, for example, the per-capita consumption rose by 6.3 % to 123.1 litres (115.8 litres) in 2018. Similarly, wafg figures revealed an increase in per-capita consumption to 150.5 litres (144.3 litres) in the category covering mineral and medicinal waters. According to a statement published by the Verband Deutscher Mineralbrunnen e.V. (VDM), a German mineral water association, in May 2019, sales of mineral and medicinal waters as well as non-alcoholic soft drinks based on mineral water from German sources increased in 2018 by 3.1 % to 14.9 billion litres (14.5 billion litres) compared with the previous year, from the producer viewpoint. Within this total, sales of mineral and medicinal waters rose by 3.5 % overall to 11.5 billion litres (11.1 billion litres). Sales of soft drinks accounted for 34.7 million hectolitres (34.0 million hectolitres), representing an increase in sales of 1.9 %.

As far as the Berentzen Group is aware, there are practically no all-round, reliable market data available for the Fresh Juice Systems segment. The group believes that the existing and future consumer demand for fresh food, especially fresh drinks like not-fromconcentrate juices, freshly squeezed juices and also smoothies, represents a key indicator for the development of the segment. The trend of several years' standing towards increased dietary awareness and the effects of nutrition on health and well-being continue to influence consumer behaviour. Values and product characteristics like freshness, organic and regional sourcing, together with sustainability in the production process, are increasingly important factors for end customers. A market study by the Association of the Industry of Juices and Nectars from Fruits and Vegetables of the European Union(AIJN) from 2018 shows that the development of the market for smoothies, which are best comparable with the system solution offered by the Fresh Juice Systems segment (production of freshly pressed fruit juices), was most recently on a clearly positive trajectory in the European markets most important for the segment.

(2.2) Business performance and economic position

(2.2.1) Overview of business performance and operating results

In the first half of the 2019 financial year, the consolidated revenues of the Berentzen Group rose to EUR 79.2 million (EUR 78.4 million), the adjusted consolidated operating profit increased to EUR 5.0 million (EUR 4.6 million), the adjusted consolidated operating profit before amortisation and depreciation likewise rose to EUR 9.0 million (EUR 8.2 million). Taking into account exceptional effects (nonrecurring items) of EUR 0.4 million, expenses arising from the financial result and result from participating interests of EUR 0.7 million (EUR 0.8 million) and income tax payable of EUR 1.2 million (EUR 1.1 million), the Berentzen Group generated a consolidated profit of EUR 2.8 million (EUR 2.7 million) over the first six months of the 2019 financial year.

(2.2.2) Business performance – significant developments and events

Sales volumes

The business performance is driven notably by the development of product sales at the focus of the operating business activities, although diverse sales mix effects mean that there is no strict linear relationship to revenues, gross profit and performance indicators.

Spirits

The following table shows the development of spirits sales volumes:

Sales of spirits by the Berentzen Group decreased by 2.1 % in the first six months of the 2019 financial year to 37.9 million 0.7-litre bottles ( 38.7 million 0.7-litre bottles). Domestic sales volumes totalled 30.9 million 0.7-litre bottles ( 32.5 million 0.7-litre bottles) and international sales volumes stood at 7.0 million 0.7-litre bottles ( 6.2 million 0.7-litre bottles). The Berentzen Group recorded sales of 11.6 million 0.7-litre bottles ( 12.1 million 0.7-litre bottles) with branded spirits at home and abroad in the first half of the financial year.

The sales volume of the entire domestic business with branded spirits returned a decline of 3.9 % as at June 30, 2019. In this context, the sales quantities of the Berentzen and Puschkin core brands were 6.4 % down on the level seen in the equivalent period last year, with the two umbrella brands being subject to disparate developments: whereas sales of the products marketed under the Berentzen umbrella brand saw a decline of 8.2 % over the first six months of the 2019 financial year, sales of spirits marketed under the Puschkin umbrella brand declined by a mere 3.1 % in comparison to the equivalent period last year. In contrast, the business with other spirits brands, particularly with traditional spirits was roughly stable (+ 0.2 % compared to the equivalent period last year).

The sales volume in the international branded spirits business decreased compared with the equivalent period last year to 5.9 %. Sales volumes in the Benelux countries grew by 9.6 % with support for this development coming from the Berentzen and Puschkin core brands. In contrast, the other international markets and the duty free sales channel reported declines in sales, albeit to differing extents. In light of an improved product mix, the level of revenues generated from these products was otherwise virtually unchanged on the comparative period.

The development of sales in the spirits business involving branded dealer and private-label products proved to be disparate compared with the equivalent period last year. The corresponding international business was able to clearly surpass the previous-year level with revenue growth of 26.3 %. Sales in Germany, however, failed to match the equivalent period last year with a drop of 5.8 %. All in all, sales fell by 1.1 % to 26.3 million 0.7-litre bottles ( 26.6 million 0.7-litre bottles) in comparison to the equivalent period last year.

Non-alcoholic Beverages

The sales volume of mineral waters and soft drinks in the Non-alcoholic Beverages segment increased by 2.0 % to 87.3 million litres ( 85.6 million litres) in the first six months of the 2019 financial year. The business with beverages marketed under the Mio Mio own brand once again saw a very positive development: Sales growth amounted to 34.4 %. Sales of mineral waters rose in comparison to the equivalent period last year by 4.0 %, with sales of own mineral water brands growing, whereas the business with contract bottling for mineral waters proved to be stable in character. The sales volume in the business with carbonated soft drinks and other non-alcoholic beverages fell by 1.3 %, with own brands in decline and the contract bottling business in this product category remaining stable. In contrast, a significant decline in sales of 32.1 % was seen by the franchise business with branded drinks from the Sinalco corporate group.

Fresh Juice Systems

		2019	2018	Change	%
Fruit juicers		1,251	1,149	+ 102	+ 8.9
Bottling systems	In thous. items	9,321	8,471	+ 850	+ 10.0
Fruit	In thous. kilos	3,935	3,619	+ 316	+ 8.7

Over the first six months of the current financial year, the Fresh Juice Systems segment recorded a very pleasing sales performance overall with regard to all material system components: sales of fruit presses increased by 8.9 %, essentially driven by significantly higher sales volume in the German-speaking area as well as Eastern Europe, whereas the sales markets in France and the US showed a decline in volume. There were increases of 8.7 % in fruit (oranges) sold and of 10.0 % in bottling systems.

General statement on the sales volume performance

Given the business performance of the individual segments as described above, the positive sales performance in the Fresh Juice Systems and Non-alcoholic Beverages segments in particular contributed to an increase in consolidated revenues. This was able to more than compensate for the fall in revenue resulting from a declining sales performance in the Spirits segment. Despite a negative development in sales performance, the business activities within the Other Segments succeeded in slightly increasing their contribution to consolidated revenues.

Sourcing

In terms of purchased goods and services, the sourcing of raw materials and the cost of procuring the individual system components in the Fresh Juice Systems segment represent a major part of the total cost of the production of spirits and non-alcoholic beverages. The underlying conditions varied with the cost prices for raw materials remaining stable to a great extent. In this context, the Berentzen Group benefited in the procurement of grain alcohol from entering into contracts at an early stage, prior to the poor harvests caused by drought. Despite similarly poor harvests resulting from bad weather, an easing of the price for sugar and glucoses was seen on account of low prices on the global sugar market. For the second half of 2019, the signs are, however, pointing towards slightly rising prices for (grain) alcohols as well as for sugar and glucoses. Over the first half of the 2019 financial year, there was a further slight easing in the cost of procuring the system component fruit (oranges) in the Fresh Juice Systems segment. In contrast, it was necessary to absorb major price increases for the procurement of tequila.

(2.2.3) Financial performance

The following table provides an analysis of the financial performance. Individual items in the Consolidated Statement of Comprehensive Income have been adjusted for income- and expense-related special effects (non-recurring items) in line with the definition of the normalised consolidated EBIT used to manage the corporate group.

	01/01 to 06/30/2019		01/01 to 06/30/2018		Change
	EUR'000	%	EUR'000	%	EUR'000	%
Consolidated revenues	79,239	98.5	78,376	98.5	+ 863	+ 1.1
Change in inventories	1,239	1.5	1,183	1.5	+ 56	+ 4.7
Total operating performance	80,478	100.0	79,559	100.0	+ 919	+ 1.2
Purchased goods and services	43,036	53.5	43,663	54.9	- 627	- 1.4
Consolidated gross profit	37,442	46.5	35,896	45.1	+ 1,546	+ 4.3
Other operating income	1,646	2.0	2,023	2.5	- 377	- 18.6
Operating expenses	34,073	42.3	33,363	41.9	+ 710	+ 2.1
Consolidated operating profit (EBIT)	5,015	6.2	4,556	5.7	+ 459	+ 10.1
Exceptional effects	- 357	- 0.4	0	0.0	- 357	> - 100.0
Financial result and result from participating interests	- 681	- 0.8	- 759	- 1.0	+ 78	- 10.3
Consolidated profit before taxes	3,977	4.9	3,797	4.8	+ 180	+ 4.7
Income tax expense	1,187	1.5	1,107	1.4	+ 80	+ 7.2
Consolidated profit	2,790	3.5	2,690	3.4	+ 100	+ 3.7

Consolidated revenues and total operating performance

The consolidated revenues of the Berentzen Group amounted to EUR 79.2 million (EUR 78.4 million) in the first half of the 2019 financial year, while the consolidated revenues including alcohol tax amounted to EUR 174.0 million (EUR 179.1 million). Including the change in inventories amounting to EUR 1.2 million (EUR 1.2 million), the total operating performance amounted to EUR 80.5 million (EUR 79.6 million).

	01/01 to	01/01 to
	06/30/2019	06/30/2018	Change
	EUR'000	EUR'000	EUR'000	%
Spirits segment	39,759	40,683	- 924	- 2.3
Non-alcoholic Beverages segment	25,293	24,124	+ 1,169	+ 4.8
Fresh Juice Systems segment	9,927	9,358	+ 569	+ 6.1
Other segments	4,260	4,211	+ 49	+ 1.2
Consolidated revenues excluding alcohol tax	79,239	78,376	+ 863	+ 1.1
Alcohol tax	94,773	100,675	- 5,902	- 5.9
Consolidated revenues including alcohol tax	174,012	179,051	- 5,039	- 2.8

The following table shows an analysis of revenues in the individual segments of the corporate group:

Purchased goods and services and consolidated gross profit

Despite the Group's higher total operating performance, purchased goods and services decreased to EUR 43.0 million (EUR 43.7 million) in absolute terms in the first half of the 2019 financial year, with the ratio of purchased goods and services to revenues falling to 53.5 % ( 54.9 %) accordingly. For further information on this, please refer to the comments on sourcing in section (2.2.2).

In line with a gross profit margin that has correspondingly improved by 1.4 percentage points, the consolidated gross profit rose by EUR 1.5 million on account of positive product and segment mix effects, among other factors.

Other operating income

The total of other operating income decreased to EUR 1.6 million (EUR 2.0 million) in the first half of the 2019 financial year. Alongside income from the reversal and derecognition of provisions and liabilities of EUR 0.7million (EUR 0.8million), this figure essentially includes cost refunds and other reimbursements from business partners in connection with licence and sales agreements of EUR 0.4 million (EUR 0.3 million).

Operating expenses

Operating expenses increased to EUR 34.1 million (EUR 33.4 million). In light of a slight increase in the Group's total operating performance on the first half of the previous year, the ratio of operating expenses to revenues increased slightly to 42.3 % ( 41.9 %).

Personnel expenses increased to EUR 13.1 million (EUR 12.6 million), the ratio of personnel expenses to revenues increased correspondingly to 16.3 % ( 15.8 %). The increase in personnel expenses is essentially attributable to additional jobs created in the areas of marketing and production logistics, as well as higher expenses in connection with severance payments. The corporate group had 495 (482) employees as at the June 30, 2019 reporting date and an average of 417 (412) full-time equivalents in the first half of the 2019 financial year. Accordingly, the headcount as at the June 30, 2019 reporting date increased in comparison to June 30, 2018; at the same time, the average number of full-time equivalents was higher over the first half of the 2019 financial year than in the comparative period.

Scheduled amortisation and depreciation increased to EUR 4.0 million (EUR 3.6 million) in the first half of the 2019 financial year on an investment volume amounting to EUR 2.7 million (EUR 3.8 million) by the end of that period. This development is attributable to the significantly higher proportion of investments involving assets with useful lives of less than five years – in this context, primarily empty bottle containers and crates – over the last three financial years.

Other operating expenses fell by EUR 0.3 million to EUR 16.9 million (EUR 17.2 million). In this respect, transport and selling expenses increased slightly to EUR 8.3 million (EUR 8.0 million) where the increase is primarily attributable to volume-related higher expenses in connection with the expansion in the scope of business in the Non-alcoholic Beverages segment. The expenditure on marketing and trade advertising was, at the current EUR 2.8 million, roughly at the level of the equivalent period last year (EUR 2.9 million), whereas maintenance expenses rose to EUR 1.5 million (EUR 1.3 million). At EUR 4.3 million (EUR 4.9 million), other overheads fell in total compared with the first half of the 2018 financial year.

Special effects (non-recurring items)

Special effects (non-recurring items) in the first half of the 2019 financial year

In connection with two sets of civil proceedings filed with a view to claiming damages, further expenses of EUR 0.4 million were recorded as a special effect (non-recurring item) for consultancy fees, whether anticipated or already incurred. The proceedings were instituted by a US distributor acting on behalf of the subsidiary Citrocasa GmbH (formerly T M P Technic-Marketing-Products GMBH; its registered office remaining in Linz, Austria) and were filed in the US in August 2018 and February 2019, respectively. The Berentzen Group and/or the Berentzen Group entities involved in these procedures, Citrocasa GmbH and Berentzen-Gruppe Aktiengesellschaft, have taken the corresponding measures to defend and assert their legal positions.

Special effects (non-recurring items) in the first half of the 2018 financial year

No special effects as such to be recognised in results arose in the first half of the financial year 2018.

Financial result and result from participating interests

The financial result and result from participating interests was kept constant year-on-year, resulting in a net expense of EUR 0.7 million (EUR 0.8 million).

Income tax expenses

In relation to the first half of the 2019 financial year, the Group incurred an income tax expense of EUR 1.2 million (EUR 1.1 million). The total includes expenses of EUR 1.1 million (EUR 1.2 million) from German trade tax and corporate income tax and comparable foreign income taxes. The measurement of deferred taxes in accordance with IAS 34 in conjunction with IAS 12 gave rise to an aggregate expense of EUR 0.1 million (gain of EUR 0.1 million), resulting mainly from decreases in net deferred tax assets on temporary measurement differences of pension obligations.

Consolidated profit

The adjusted consolidated operating profit or EBIT recorded in the first half of the 2019 financial year increased by 10.1 % to EUR 5.0 million (EUR 4.6 million) compared with the equivalent period last year. The main factor driving this development was the significant improvement of EUR 1.5 million (EUR 0.6 million) in the consolidated gross profit; higher operating expenses, specifically relating to personnel, and amortisation and depreciation, as well as a lower level of operating income reduced by a total of EUR 1.1 million (EUR 0.2 million) the aforementioned contribution to earnings from the gain in gross profit. On the basis of these developments and taking into account exceptional effects (non-recurring items) of EUR 0.4 million (EUR 0.0 million) and a slightly improved financial result and result from participating interests, the consolidated profit rose to EUR 2.8 million (EUR 2.7 million).

(2.2.4) Cash flows

Funding structure

The overall funding of the Berentzen Group as presented in the Annual Report for the 2018 financial year remains essentially unchanged at the end of the first half of the 2019 financial year, as shown in the table below:

		Financing line 06/30/2019			Financing line 12/31/2018
		Longterm	Shortterm	Total	Longterm	Shortterm	Total
		EURm	EURm	EURm	EURm	EURm	EURm
Syndicated loan agreement	Line, limited	7.5	18.0	25.5	7.5	18.0	25.5
Annuity Loan	Loan amount	0.1	0.2	0.3	0.0	0.0	0.0
Factoring	Line, limited	0.0	50.0	50.0	0.0	50.0	50.0
Central settlement and factoring	Line, unlimited 1)	0.0	9.2	9.2	0.0	9.2	9.2
Working capital loans	Line, limited 2)	0.0	1.0	1.0	0.0	1.1	1.1
Surety bond for alcohol tax liabilities	Line, limited	0.0	0.8	0.8	0.0	0.8	0.8
Total financing		7.6	79.2	86.8	7.5	79.1	86.6
Total financing		7.6	79.2	86.8	7.5	79.1	86.6

1) Average funding volume in the (half) financial year.

2) This includes foreign currency working capital lines that have been translated as of the respective reporting dates.

The funding framework as of June 30, 2019 deviated from that in place at December 31, 2018 with regard to an annuity loan taken out by the Turkish subsidiary in May 2019 in an amount equivalent to EUR 0.3 million. The new loan taken out matures on April 9, 2021. In addition, the working capital line available to the two foreign group companies decreased by EUR 0.1 million to EUR 1.0 million (EUR 1.1 million) on account of exchange rate fluctuations.

Abridged Consolidated Cash Flow Statement for the period from January 1 to June 30, 2019

The following Cash Flow Statement shows the development of liquid assets in the corporate group. The cash and cash equivalents are calculated as the balance of the cash and cash equivalents shown in the Statement of Financial Position and part of the current financial liabilities.

Cash and cash equivalents include the current accounts maintained with banks that are used to settle two factoring agreements, containing the cash available at all times from the factoring arrangements ("customer settlement accounts"). The receivables from the customer settlement accounts have different characteristics from usual current account receivables from banks, notably with regard to interest. Only the shares of outside capital immediately available under working capital lines are carried as current financial liabilities.

	01/01 to	01/01 to
	06/30/2019	06/30/2018	Change
	EUR'000	EUR'000	EUR'000
Operating cash flow	5,750	7,303	- 1,553
Cash flow from operating activities	- 2,397	- 23	- 2,374
Cash flow from investing activities	- 2,553	- 3,632	+ 1,079
Cash flow from financing activities	- 2,623	- 2,067	- 556
Change in cash and cash equivalents	- 7,573	- 5,722	- 1,851
Cash and cash equivalents at the start of the period	15,459	18,435	- 2,976
Cash and cash equivalents at the end of the period	7,886	12,713	- 4,827

Operating cash flow and cash flow from operating activities

In the first half of the 2019 financial year, the operating cash flow fell to EUR 5.8 million (EUR 7.3 million). The lower level of cash inflow was caused by a detrimental balance of payments in connection with income taxes.

The cash flow from operating activities additionally encompasses movements in working capital and showed on balance a net cash outflow of EUR 2.4 million (less than EUR 0.1 million) over the first six months of the 2019 financial year. The following factors had a significant impact on this development.

The change in what is known as trade working capital (the balance from movements in inventories, receivables including factoring arrangements, liabilities arising from alcohol tax and trade payables) on balance gave rise to a cash outflow of EUR 8.4 million (EUR 10.3 million). This outflow is attributable specifically to the effect that constantly recurs throughout the year arising from the seasonal reduction in alcohol tax liabilities; as of the June 30, 2019 reporting date, this figure came to EUR 10.0 million (EUR 8.6 million).

This was opposed by a cash inflow from a reduction in other assets amounting to EUR 3.7 million (EUR 1.7 million). Furthermore, the change in other liability items gave rise to a cash outflow of EUR 3.4 million; in the equivalent period last year, this had still resulted in a cash inflow of EUR 1.3 million.

Cash flow from investing activities

The investing activities of the corporate group led to a net cash outflow of EUR 2.6 million (EUR 3.6 million). The investments in property, plant and equipment and intangible assets totalled EUR 2.7 million (EUR 3.8 million), set against proceeds of EUR 0.2 million (EUR 0.2million) received on the disposal of non-current assets. In this context, the cash outflow was once again essentially attributable to investments in empty bottle containers and crates in the Non-alcoholic Beverages segment. Extensive investments in the refurbishment of a glass recycling facility were made in the equivalent period last year.

Cash flow from financing activities

Financing activities gave rise to a new cash outflow of EUR 2.6 million (EUR 2.1 million) that essentially result from the dividend payment made on the basis of the corresponding annual general meeting resolutions. The taking out of an annuity loan brought about a cash inflow of EUR 0.3 million, whereas the repayment of lease liabilities pursuant to IFRS 16 led to a cash outflow of EUR 0.3 million. As application of this new financial reporting standard did not become mandatory until the beginning of the 2019 financial year, there was no net cash outflow for this purpose in the equivalent period last year.

Cash and cash equivalents

All in all, cash and cash equivalents totalled EUR 7.9million (EUR 12.7million) at June 30, 2019, of which EUR 5.0million (EUR 10.6million) relates to receivables from the customer settlement accounts maintained with banks that are used for settlement under two factoring agreements. At June 30, 2019, drawdowns of short-term credit lines and similar financial instruments amounted to EUR 0.2 million (EUR 1.0 million).

(2.2.5) Financial position

	06/30/2019		12/31/2018		Change
	EUR'000	%	EUR'000	%	EUR'000
Assets
Non-current assets	59,347	44.1	59,442	41.0	- 95
Current assets	75,226	55.9	85,537	59.0	- 10,311
	134,573	100.0	144,979	100.0	- 10,406
Shareholders' equity and liabilities
Shareholders' equity	47,524	35.3	47,409	32.7	+ 115
Non-current liabilities	19,556	14.5	19,047	13.1	+ 509
Current liabilities	67,493	50.2	78,523	54.2	- 11,030
	134,573	100.0	144,979	100.0	- 10,406

Assets

Total assets decreased to EUR 134.6 million (EUR 145.0 million) compared with December 31, 2018.

Non-current assets

EUR 59.3 million (EUR 59.4 million) of consolidated assets have been invested in non-current assets. While this development has remained virtually constant in absolute terms, the ratio to total assets has now increased to 44.1 % ( 41.0 %). In this context, the property, plant and equipment contained in this item decreased by a total of EUR 0.8 million on account of depreciation of EUR 3.1 million and a comparatively lower investment volume of EUR 2.3 million. Intangible assets likewise decreased slightly by EUR 0.3 million.

The coverage of non-current assets by shareholders' equity and non-current liabilities increased to 113.0 % ( 111.8 %).

Current assets

Current assets declined to EUR 75.2 million (EUR 85.5 million), with trade receivables accounting for 21.3 % ( 19.2 %) of the total. At present, the Berentzen Group has two factoring agreements in place with a net funding framework of EUR 50.0 million together with a factoring line with no formal limit under three further central settlement and factoring agreements. Gross receivables of EUR 44.7 million (EUR 55.7 million) had been sold at June 30, 2019 on this basis. The volume of receivables still recognised decreased to EUR 16.1 million (EUR 16.4 million).

The stock of inventories remained to a great extent constant at EUR 40.2 million (EUR 39.9 million).

A significant item in other current assets relates to security retainers from factoring transactions of EUR 6.9 million (EUR 10.4 million). This declined in line with the lower volume of gross receivables sold as of June 30, 2019.

The cash and cash equivalents of EUR 8.1 million (EUR 15.8 million) declined mainly due to the net cash outflow totalling EUR 7.6 million shown in the abridged Consolidated Cash Flow Statement.

Shareholders' equity and liabilities

Shareholders' equity

With consolidated comprehensive income of EUR 2.7 million in the first half of the 2019 financial year (EUR 2.6 million) and taking account the dividend payment of EUR 2.6 million (EUR 2.1 million) passed by the annual general meeting held in May 2019, equity increased slightly to EUR 47.5 million (EUR 47.4 million).

Non-current liabilities

EUR 19.6 million (EUR 19.0 million) was available to the corporate group in the form of non-current liabilities. This item essentially comprises non-current financial liabilities of EUR 7.9 million (EUR 7.1 million) and pension provisions of EUR 9.2 million (EUR 9.5 million). Non-current liabilities accounted for 22.5 % ( 19.5 %) of total consolidated liabilities at June 30, 2019.

Current liabilities

Current liabilities decreased to EUR 67.5 million (EUR 78.5 million) or 50.2 % ( 54.2 %) of total consolidated assets. Of this figure, EUR 1.7 million (EUR 1.1 million) relates to current financial liabilities.

Alcohol tax liabilities amounted to EUR 32.3 million (EUR 42.3 million). The decline of EUR 10.0 million compared with December 31, 2018 in alcohol tax liabilities arising from revenues in Spirits and Other Segments in Germany results mainly from the traditionally stronger business activities towards the end of each financial year compared with the middle of the financial year for seasonal reasons.

At EUR 10.8 million (EUR 9.4 million), trade payables were EUR 1.5 million higher than at year-end 2018 for reasons relating to scheduling and balance sheet date. Other current liabilities including current provisions fell to EUR 22.7 million (EUR 25.8 million). The liabilities from marketing and sales obligations carried in the total plus bonuses totalled EUR 8.8 million (EUR 10.3 million). Taxes payable – mainly payroll and sales taxes – declined to EUR 4.0 million (EUR 5.4 million), due mainly to a season- and reporting date-related change in the sales tax payable influenced largely by the sales of spirits at the respective year-end.

(2.2.6) General statement about the business performance and economic position of the corporate group

The first half of the Berentzen Group's 2019 financial year was characterised by a number of operational challenges as part of its transformation process. To summarize, the economic position of the corporate group can be still be considered good against the backdrop of sound financing and a positive financial performance.

While consolidated revenues rose by 1.1 % to EUR 79.2 million (EUR 78.4 million), the earnings ratios demonstrated an even more positive development. On the basis of a EUR 1.5 million improvement in gross profit, the Berentzen Group closed the first half of the 2019 financial year with an adjusted consolidated operating profit (consolidated EBIT) of EUR 5.0 million (EUR 4.6 million) and an adjusted consolidated operating profit before depreciation and amortisation (consolidated EBITDA) of EUR 9.0 million (EUR 8.2 million), consolidated profit increased slightly to EUR 2.8 million (EUR 2.7 million).

The business performance varied between the individual segments, however. The business with spirits – reflected in the Spirits segment and Other Segments – proved to be in slight decline overall in the first half of the financial year. The Non-alcoholic Beverages segment succeeded in generating revenue growth of 4.8 % driven by a significant rise in revenues with this segment's own brands. One especially significant development in this context was the revenue growth of 43.0 % from the products distributed under the Mio Mio brand. The Fresh Juice Systems segment enjoyed a very satisfactory first half of the financial year, particularly with a view to the higher sales of equipment and the pleasing development from a volume and earnings perspective in the business with fruit (oranges).

The cash flows and financial position continued to be sound. The funding of the corporate group remains secure especially in light of the overall funding described, and the corporate group continues to enjoy a very good liquidity base to fund its commercial operations and its medium-term growth strategy. The dynamic gearing ratio of 0.08 (-0.29) at June 30, 2019 is illustrative of an appropriate use of fixed-rate financing funds in relation to the Group's ability to provide its own funds from operations. As a consequence of the positive development of the financial performance, consolidated equity increased slightly by EUR 0.1 million; taking account of an EUR 10.4 million decline in total consolidated assets to EUR 134.6 million, the equity ratio rose in comparison to December 31, 2018 to 35.3 % ( 32.7 %).

(3) Report on risks and opportunities

On the one hand, the Group's business activities open up numerous opportunities, while on the other hand, the corporate group is exposed to numerous risks. Risk may have a negative impact on the business performance due to the occurrence of internal or external events affecting future developments that prevent the company from achieving defined goals or successfully implementing strategies. In contrast, opportunities provide ways of positively impacting the business performance by means of future successes that go beyond the defined objectives.

The Berentzen Group's risk management system is geared towards promptly identifying, assessing and mitigating risk by means of appropriate early identification and hedging measures. The structure of the risk management system is described in detail in the Report on opportunities and risks contained in the Berentzen Group Annual Report for the 2018 financial year.

The risks and opportunities presented there and the assessment thereof as part of the assessment matrix continue to apply. No significant risks or opportunities were identified in the reporting period going beyond those presented in the Report on opportunities and risks contained in the Berentzen Group annual report for the 2018 financial year. Consequently, there are no risks classified as high risk within the scope of the risk management system. In the opinion of the Management, the Berentzen Group's risk exposure has thus remained unchanged overall compared with the position described in the Berentzen Group Annual Report for the 2018 financial year, and continues to be manageable from today's perspective.

(4) Forecast report

The Forecast report for the Berentzen Group takes account of the relevant facts and events known at the time of preparation of the interim consolidated half-yearly financial statements which might have an impact on the corporate group's future business performance. The forecasts made herein on the basis of the current version of the integrated corporate plan for the Berentzen Group for the 2019 financial year, and taking into account the business performance in the first half of the 2019 financial year, are built around the organic development of the corporate group excluding significant non-recurring (exceptional) effects and changes arising from possible company acquisitions; where such events need to be incorporated at the time of preparation of the present Forecast report, this must be stated accordingly.

(4.1) General economic and industry-specific framework conditions

General economic environment

In its World Economic Outlook Update issued in July 2019, the IMF reported restrained growth in the global economy and correspondingly lowered its forecast for global economic growth anticipated for 2019 from 3.3 % to 3.2 %. In contrast, the IMF upheld its forecast for the eurozone, unchanged at growth of 1.3 %. In a publication from June 2019, DIW Berlin anticipates global economic growth of 3.7 %, thus demonstrating a little more optimism, but this Institute nevertheless does point out uncertainties, specifically those arising from trade conflicts and protectionism.

Regarding the German economy as a whole, the IMF is currently predicting an expansion of 0.7 % and thus lowered its expectations by 0.1 percentage points in comparison to April. To date, DIW Berlin is anticipating real GDP growth of 0.9 %.

Developments on the drinks market

The Berentzen Group continues to work on the assumption that no positive stimuli for consumption of any significance are to be expected on the basis of a rather restrained economic outlook for the sales environment for beverages.

With regard to the development of the domestic and international spirits market, the Berentzen Group believes that there have been no significant changes overall since the annual report for the 2018 financial year was published in March of this year. Consequently, the Berentzen Group continues to assume that total sales of spirits in the German retail trade will remain stable or at worst experience a marginal decline. The forecasts regarding the international spirits business similarly do not present any positive growth prospects in a large number of international markets. International trade tensions, economic uncertainty around the globe and the difficulties in predicting the outcome of "Brexit" are putting a damper on expectations.

The business with non-alcoholic beverages continues to be characterised by trends such as healthy eating, sustainability, regionality, as well as fresh and premium products. With regard to the forecast made in the 2018 Annual Report for the 2019 financial year, the assessment regarding the underlying conditions have only changed slightly: after an especially hot summer in Germany in 2018, the assumptions made for estimating sales and revenues are not based on comparable weather conditions in 2019. The spring and the first summer months did, however, prove to be warmer than expected so that the business with mineral waters benefited from this development, whereas it did lead to slightly lower sales performance with regard to sweet beverages, particularly lemonades. All in all, the Berentzen Group continues to rate the market prospects for the business with soft drinks as positive.

With reference to the presentation of the developments on the drinks market in the Economic Report (section 2.1), as far as the Berentzen Group is aware, for all intents and purposes there are no all-round, reliable market data available for the Fresh Juice Systems segment, meaning that it makes use of the market development of fresh drinks like not-from-concentrate juices, freshly squeezed fruit juices and also smoothies as a leading indicator. No deviations from the forecasts made in the 2018 Annual Report have arisen for this segment either. In an internal assessment of the situation, the Berentzen Group continues to assume that the trend towards sensible and healthy diets observed for many years now will continue into the future. As a consequence, the positive sales and revenue developments for fresh drinks seen in particular on the most important European markets, namely Central Europe, that were confirmed by the market study published by the Association of the Industry of Juices and Nectars from Fruits and Vegetables of the European Union (AIJN) in 2018, is expected to continue.

(4.2) Anticipated development of financial performance

		Forecast for the 2019	Forecast for the 2019
		financial year in 2018	financial year
	2018	forecast report	Q2/ 2019
	EURm	EURm	EURm
Contribution margin after marketing budgets
Segment
Spirits	27.5	27.4 to 30.3	unchanged
Non-alcoholic Beverages	21.4	21.4 to 23.6	unchanged
Fresh Juice Systems	6.1	7.1 to 7.9	unchanged
Other segments	5.0	5.3 to 5.8	unchanged

Anticipated development of the segments

The anticipated development of the individual segment results (contribution margin after marketing budgets) as shown in the above table is based in particular on the information gained from the internal planning processes, which reflect the respective business performance achieved up to the end of the first seven months of the 2019 financial year as well as the estimates for the period remaining until the end of the 2019 financial year. On this basis, there was no need to adjust the forecast over the course of the year.

Segment earnings in the Spirits segment of between EUR 27.4 million and EUR 30.3 million are still anticipated. While over the first half of the 2019 financial year, the domestic business with branded spirits and the branded dealer and private-label products business showed a slight decline on the equivalent period last year within the context of a difficult market environment, a positive development with regard to the volume of business is expected in the second half of the year, specifically with a view to the revenue and earnings potential from products distributed under the umbrella brands of Berentzen and Puschkin, from whiskey sales volumes yet to be realised and from opportunities arising from the marketing of new product innovations. In this context, spending on marketing and trade advertising is likely to be slightly higher overall than assumed in the original planning.

The forecast made in the 2018 Annual Report concerning the segment earnings for the 2019 financial year of Other Segments, that notably include the international business with branded spirits, is likewise confirmed. According to planning, the decisive factor in this development is to be concentration on the core markets and the resulting positive product and country mix effects.

The Berentzen Group confirms its forecast for the Non-alcoholic Beverages segment with a contribution margin after marketing budgets of a volume ranging between EUR 21.4 million and EUR 23.6 million. The basis for this assessment includes, firstly, the positive development of business over the first six months of the 2019 financial year and, secondly, expectations of a rising volume of business in the second half of the financial year in a context of an optimised customer and product mix going forward. The ongoing positive development of the Mio Mio product line is of material importance for the success of the segment.

Supported by the pleasing development in the business with all system components in the first half of 2019, the Berentzen Group also confirms its forecast for the Fresh Juice Systems segment, with segment earnings for the 2019 financial year within a range from EUR 7.1 million to EUR 7.9 million. In this context, the assumption continues to be made that strong growth in the contribution margin will more than compensate for the effect on earnings from marketing budgets rising at the same time.

		Forecast for the 2019	Forecast for the 2019
		financial year in 2018	financial year
	2018	forecast report	Q2/ 2019
	EURm	EURm	EURm
Consolidated revenues	162.2	164.7 to 173.4	unchanged
Consolidated operating profit (consolidated EBIT)	9.8	9.0 to 10.0	unchanged
Consolidated operating profit before depreciation and amortisation (consolidated EBITDA)	17.3	17.0 to 18.8	unchanged

Anticipated development of total operating performance and consolidated operating profit

The Berentzen Group reaffirms the forecasts it made for the 2019 financial year in the Annual Report for the 2018 financial year regarding the adjusted consolidated operating profit (consolidated EBIT), the adjusted consolidated operating profit before depreciation and amortisation (consolidated EBITDA) and consolidated revenues.

(4.3) Anticipated development of cash flows and financial position

Based on the anticipated development of the operating activities as described above, which has been largely confirmed, the Berentzen Group is reaffirming the basic forecast it made in the 2018 Annual Report for the 2019 financial year that the good cash flows and financial position of the corporate group to date will continue to show a solid performance. The cash flows and financial position of the corporate group at December 31, 2018 represent the starting point in this context.

Anticipated development of cash flows

		Forecast for the 2019	Forecast for the 2019
		financial year in 2018	financial year
	2018	forecast report	Q2/ 2019
	EURm	EURm	EURm
Operating cash flow	14.2	14.1 to 16.4	11.3 to 13.2

With regard to the anticipated development of the operating cash flow, the Berentzen Group is now adjusting its forecast to a range between EUR 11.3 million and EUR 13.2 million. This is in particular due to the timing of the cash outflows in connection with income taxes and other non-cash effects in general deviating from the original planning assumptions.

Anticipated development of financial position

		Forecast for the 2019	Forecast for the 2019
		financial year in 2018	financial year
	2018	forecast report	Q2/ 2019
Equity ratio	32.7 %	34.2 % to 39.2 %	unchanged
Dynamic gearing ratio	- 0.44	0.19 to 0.24	- 0.50 to - 0.45

In line with the positive earnings development forecast, the Berentzen Group expects an increase in group equity as of the end of the 2019 financial year in absolute terms. The equity ratio is expected to be in the range of 34.2 % to 39.2 %.

In light of the changing accounting parameters, the Berentzen Group is modifying its forecast for dynamic leverage to an anticipated range of somewhere between -0.50 and -0.45. The minus sign means that cash and cash equivalents exceed non-current and current financial liabilities and that, in this respect, there is no net debt recorded on the statement of financial position. This assessment illustrates the fact that the Berentzen Group is expected to be able to service its debt going forward.

Based on the current status of the integrated corporate plan for the 2019 financial year, the funding structure of the corporate group will remain balanced overall. Nevertheless, the indicators used to manage the corporate group are also subject to reporting-date effects to a large extent, in particular if they are only subject to short commitment periods.

(4.4) General statement regarding the anticipated development of the corporate group

All in all, the Berentzen Group does not have any new information suggesting that the main forecasts and other statements regarding the anticipated development of the corporate group made in the 2018 Annual Report for the 2019 financial year have changed in any significant manner. Based on the above forecasts, the Berentzen Group expects its financial position, cash flows and financial performance to continue to develop positively in the 2019 financial year.

The forecasts presented here are based on an unchanged corporate structure compared with the end of the 2018 financial year. Accordingly, significant deviations may arise from the realisation of possible opportunities to make further company acquisitions. Furthermore, the actual business performance is dependent not least upon the general economic and industry-specific environment and may be negatively affected by more strongly adverse changes in the underlying conditions described. Both positive and negative deviations from the forecast may also result from not only the opportunities and risks described in the report on opportunities and risks but also such opportunities and risks that were not identifiable at the time of preparing this group management report.

C. Consolidated half-yearly financial statements

Consolidated Statement of Financial Position at June 30, 2019

	06/30/2019	12/31/2018
	EUR'000	EUR'000
ASSETS
Non-current assets
Intangible assets	11,736	12,083
Property, plant and equipment	44,977	45,796
Investment property	736	744
Rights of use from leased assets	1,109	0
Other financial assets	789	819
Total non-current assets	59,347	59,442
Current assets
Inventories	40,223	39,920
Current trade receivables	16,050	16,434
Current income tax assets	1,414	306
Cash and cash equivalents	8,104	15,793
Other current financial and non-financial assets	9,435	13,084
Total current assets	75,226	85,537
TOTAL ASSETS	134,573	144,979

	06/30/2019	12/31/2018
	EUR'000	EUR'000
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' Equity
Subscribed capital	24,424	24,424
Additional paid-in capital	6,821	6,821
Retained earnings	16,279	16,164
Total shareholders' equity	47,524	47,409
Non-current liabilities
Non-current provisions	9,650	9,945
Non-current financial liabilities	7,866	7,134
Deferred tax liabilities	2,040	1,968
Total non-current liabilities	19,556	19,047
Current liabilities
Alcohol tax liabilities	32,275	42,277
Current provisions	818	730
Current income tax liabilities	2,527	2,802
Current financial liabilities	1,685	1,086
Trade payables and other liabilities	30,188	31,628
Total current liabilities	67,493	78,523
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	134,573	144,979

Consolidated Statement of Comprehensive Income for the period from

January 1 to June 30, 2019

	01/01 to 06/30/2019	01/01 to 06/30/2018
	EUR'000	EUR'000
Revenues	79,239	78,376
Change in inventories	1,239	1,183
Other operating income	1,646	2,023
Purchased goods and services	43,036	43,663
Personnel expenses	13,140	12,565
Amortisation and depreciation of assets	4,025	3,603
Other operating expenses	17,265	17,195
Financial income	72	31
Financial expenses	753	790
Earnings before income taxes	3,977	3,797
Income tax expenses	1,187	1,107
Consolidated profit	2,790	2,690
Currency translation differences	- 45	- 326
Items to be reclassified to the income statement at a later date	- 45	- 326
Revaluation of defined benefit obligations	0	301
Deferred taxes on revaluation of defined benefit obligations	0	- 73
Items not to be reclassified to the income statement at a later date	0	228
Other comprehensive income	- 45	- 98
Consolidated comprehensive income	2,745	2,592
Earnings per share after profit attributable to shareholders (in EUR per share)
Basic / diluted earnings per common share	0.297	0.286

Consolidated Statement of Changes in Shareholders' Equity for the period from January 1 to June 30, 2019

		Additional paid-in		Total shareholders'
	Subscribed capital	capital	Retained earnings	equity
	EUR'000	EUR'000	EUR'000	EUR'000
Total at 01/01/2018	24,424	6,821	13,344	44,589
Consolidated profit			2,690	2,690
Other comprehensive income			- 98	- 98
Consolidated comprehensive income			2,592	2,592
Dividends paid			- 2,067	- 2,067
Total at 06/30/2018	24,424	6,821	13,869	45,114
Total at 01/01/2019	24,424	6,821	16,164	47,409
Consolidated profit			2,790	2,790
Other comprehensive income			- 45	- 45
Consolidated comprehensive income			2,745	2,745
Dividends paid			- 2,630	- 2,630
Total at 06/30/2019	24,424	6,821	16,279	47,524

Abridged Consolidated Cash Flow Statement for the period from

January 1 to June 30, 2019

	01/01 to	01/01 to
	06/30/2019	06/30/2018
	EUR'000	EUR'000
Cash flow from operating activities	- 2,397	- 23
Cash flow from investing activities	- 2,553	- 3,632
Cash flow from financing activities	- 2,623	- 2,067
Change in cash and cash equivalents	- 7,573	- 5,722
Cash and cash equivalents at the start of the period	15,459	18,435
Cash and cash equivalents at the end of the period	7,886	12,713

Abridged notes to the consolidated financial statements

(1) Policies and methods

(1.1) information about the Company

Berentzen-Gruppe Aktiengesellschaft, Haselünne, is a stock corporation (Aktiengesellschaft) organised under German law. The company has its registered head office in Haselünne, Ritterstrasse 7, 49740 Haselünne, Germany, and is recorded in the Commercial Register maintained by Osnabrück Local Court (entry HRB 120444).

The share capital of Berentzen-Gruppe Aktiengesellschaft is divided into 9.6 million no-par shares of common stock which are listed on the regulated market of the Frankfurt Stock Exchange (General Standard) under ISIN DE0005201602 and WKN 520160.

The business activities of Berentzen-Gruppe Aktiengesellschaft and its affiliated companies comprise the production and distribution of spirits and non-alcoholic beverages and the development and distribution of fresh juice systems.

(1.2) Explanatory notes to the policies and methods applied in the preparation of the consolidated financial statements of Berentzen-Gruppe Aktiengesellschaft in accordance with International Financial Reporting Standards (IFRS)

Principal accounting policies

The present consolidated half-yearly financial statements at June 30, 2019 were prepared in accordance with Section 117 No. 2 of the German Securities Trading Act (WpHG) in conjunction with Section 115 WpHG and in accordance with the International Financial Reporting Standards (IFRS) and the interpretations of the IFRS Interpretations Committee as applicable in the European Union (EU) for interim financial reporting. In particular, IAS 34 "Interim Financial Reporting" was applied; in addition, German Accounting Standard No. 16 (GAS 16) "Half-Year Financial Reporting" was observed.

With the following exception, the recognition and measurement methods applied in the consolidated half-yearly financial statements are essentially the same as those applied in the last consolidated financial statements at the end of the 2018 financial year:

In accordance with IAS 34 in conjunction with IAS 12, the income tax expense in the interim reporting period was calculated on the basis of the best estimate of the currently anticipated effective income tax rate for the financial year as a whole. This income tax rate is applied to the pre-tax profit for the interim reporting period.

A detailed description of the principal accounting policies and the recognition and measurement methods applied is provided in the consolidated financial statements at December 31, 2018, which forms the basis for the present consolidated half-yearly financial statements.

The consolidated half-yearly financial statements at June 30, 2019 and the interim group management report for the first half of the 2019 financial year were subjected to neither a voluntary review nor an audit in accordance with Section 317 HGB and should be read in conjunction with the consolidated financial statements at December 31, 2018 and the combined management report of the Berentzen Group and of Berentzen-Gruppe Aktiengesellschaft for the 2018 financial year.

The Executive Board approved the present consolidated half-yearly financial statements for the period from January 1 to June 30, 2019 and the interim Group management report for the first half of the 2019 financial year for publication on August 13, 2019.

(1.3) New and amended IFRS standards

The following new or amended IFRS standards had to be applied for the first time in the 2019 financial year:

	Mandatory
Standard	adoption
IFRS 16 "Leases"	01/01/2019

IFRS 16 "Leases" changes the accounting treatment at the lessee specifically in such a way that classification as an operating or finance lease is now no longer performed, but both a right-of-use asset and a lease liability usually have to be recognised. In this respect, the lease liability comprises the present value of the outstanding lease payments plus any existing residual value guarantees. Whereas the right-of-use is generally amortised using the straight-line method, interest is accrued for the subsequent measurement of the lease liability.

The Berentzen Group applied IFRS 16 for the first time as of January 1, 2019 using the modified retrospective approach. Correspondingly, the figures for the equivalent period last year have not been adjusted. The option was exercised not to disclose short-term leases and leases relating to low-value assets in the balance sheet.

For first-time application, rights of use were measured at the value of the lease liability, for this purpose the incremental borrowing rate around January 1, 2019 was used. The weighted average incremental borrowing rate amounted to 3.7 %. Leases whose term ends no later than on December 31, 2019 were treated as short-term leases. If there are options to extend or terminate the lease, the current information was taken into consideration in determining the term of the lease.

Within the scope of first-time application, rights of use to leased assets of EUR 1,128 thousand and lease liabilities of EUR 1,237 thousand were recognised at January 1, 2019. The difference of EUR 109 thousand is attributable to lease liabilities from subleases for which receivables of the corresponding amount were recognised as assets.

The obligations arising from operating leases at December 31, 2018, can be reconciled as follows to the lease liabilities recognised at January 1, 2019:

	EUR'000
Obligations from operating leases at 12/31/2018	2,433
Accounting conveniences
Short-term leases	- 868
Leases relating to low-value assets	- 16
Service components	- 192
Other	- 73
Gross lease liabilities at 01/01/2019	1,284
Discounting effect	- 47
Net lease liabilities at 01/01/2019	1,237

(1.4) Consolidated group

The consolidated group is unchanged compared with the consolidated financial statements at December 31, 2018.

(1.5) Assumptions and estimates

When preparing the consolidated half-yearly financial statements in accordance with IAS 34, the Executive Board is required to apply assessments and estimates, and make assumptions, that have an impact on the application of accounting principles in the corporate group and the disclosure of assets and liabilities, and income and expenses. The actual amounts may deviate from these estimates. The results for the reporting period ending June 30, 2019 do not necessarily allow any conclusions to be drawn regarding the development of future results.

With the following exception, the methods applied when making assumptions and estimations are unchanged compared with the consolidated financial statements at December 31, 2018:

Regarding the estimate of the liability arising from deposits / deposit provisions for the Non-alcoholic Beverages segment, there is a higher turnover rate for returnable containers than at the reporting date of December 31, 2018 for seasonal reasons. Consequently, the liability is EUR 151 thousand (June 30, 2018: EUR 147 thousand) lower than under the calculation method applied at the reporting date of December 31, 2018.

(1.6) Economic and seasonal factors

The Group's revenues are influenced by seasonal factors, particularly in the Spirits and Non-alcoholic Beverages segments. As described in greater detail in Note (4.2) "Segment report", the revenues of the Spirits segment – the segment with the highest revenues – are generally higher in the second half of the financial year than the first half of the financial year. In addition, the earnings performance of this segment is also dependent on the nature and scope of the marketing instruments employed, whereas general weather conditions are a significant factor influencing the unit sales and revenues of the Non-alcoholic Beverages segment. By contrast, no material seasonal factors have been identified for the Fresh Juice Systems segment.

Consequently, the results for the first half of the financial year are not necessarily indicative of the results that can be expected for the financial year as a whole.

(2) Explanatory notes to the Consolidated Statement of Financial Position

(2.1) Non-current assets

Investments

A total of EUR 2,703 thousand (first half of 2018: EUR 3,784 thousand) was invested in intangible assets, property, plant and equipment, and other financial assets in the first half of the 2019 financial year.

Obligations to purchase property, plant and equipment

Furthermore, there were obligations at June 30, 2019 to purchase property, plant and equipment of EUR 658 thousand (December 31, 2018: EUR 0 thousand).

(2.2) Current trade receivables

Transfers of financial assets

As part of its external funding, the Berentzen Group also utilises factoring lines. The total available financing amount on the basis of two factoring agreements is EUR 50,000 thousand (December 31, 2018: EUR 50,000 thousand). The Group can also access a formally unlimited factoring line based on three additional centralised settlement and factoring agreements which stipulate no maximum commitment; instead, the possible drawdown is limited only by the available amount of saleable receivables.

At June 30, 2019, trade receivables of EUR 44,667 thousand (December 31, 2018: EUR 55,746 thousand) had been sold and assigned to the respective factoring companies. Because almost all of the risks and rewards incident to ownership of the financial assets were transferred to the factor, the trade receivables sold were completely derecognised in accordance with IFRS 9.3.2.6 a). The late payment risk remaining with the Berentzen Group at the time of derecognition was recognised as an asset representing a continuing involvement of EUR 149 thousand at June 30, 2019 (December 31, 2018: EUR 202 thousand). A liability of the same amount was recognised at the same time.

The factor retained collateral amounting to EUR 6,944 thousand (December 31, 2018: EUR 10,377 thousand) to secure any deductions from the face value of receivables. This item is carried under Other current assets.

(2.3) Shareholders' equity

Profit utilisation / dividend

In accordance with the German Stock Corporation Act (AktG), the profit utilisation including the dividend distribution to shareholders is determined exclusively on the basis of the distributable profit presented in the separate financial statements of Berentzen-Gruppe Aktiengesellschaft prepared in accordance with commercial-law regulations.

A resolution was adopted at the annual general meeting on May 22, 2019 to utilise the distributable profit of around EUR 10,422 thousand for the 2018 financial year (previous year: EUR 6,178 thousand) presented in the annual financial statements of Berentzen-Gruppe Aktiengesellschaft to pay a dividend of EUR 0.28 (previous year: EUR 0.22) per share of common stock qualifying for dividends for the 2018 financial year and to carry forward to the remaining amount to new account. In consideration of the treasury stock not qualifying for dividends in accordance with Section 71b AktG held by the Company on the day of the annual general meeting, this corresponded to a total dividend payout of around EUR 2,630 thousand (previous year: EUR 2,067 thousand) and an amount of around EUR 7,791 thousand (previous year: EUR 4,111 thousand) carried forward to new account.

(2.4) Non-current provisions

	06/30/2019	12/31/2018
	EUR '000	EUR '000
Pension provisions	9,177	9,542
Other non-current provisions	473	403
	9,650	9,945

Pension provisions

	06/30/2019	12/31/2018
	EUR '000	EUR '000
Pension provisions	9,177	9,542
	9,177	9,542

The pension provisions based on defined benefit plans pertain to the post-employment benefit obligations (old age, disability, and survivor's pensions) of the companies included in the consolidated financial statements, which are governed by different pension codes. The amount of individual benefits depends on the length of service with the Company and the age and/or salary level of the employee. No defined benefit commitments are being made to newly hired employees at this time.

Pursuant to IAS 19, the provisions for pension and similar obligations are calculated in accordance with the projected unit credit method for defined benefit plans. The figures are determined on the basis of actuarial reports. The parameters for the actuarial interest rate, rate of increase in future compensation and imputed rate of increase on the pension obligation were retained unchanged in the first six months of the 2019 financial year compared with December 31, 2018. The following table shows an analysis of the defined benefit obligation (DBO) at June 30, 2019:

	06/30/2019	12/31/2018
	EUR '000	EUR '000
DBO at the start of the financial year	9,542	10,509
Interest expenses on the DBO	50	101
Revaluations
Actuarial gains / losses due to change in demographic assumptions	0	116
Actuarial gains / losses due to change in financial assumptions	0	- 85
Actuarial gains / losses due to experience adjustments	0	- 243
Pension benefits paid	- 415	- 856
DBO at the end of the first half / financial year	9,177	9,542

The following table shows the breakdown of the pension expenses for the respective six-month period:

	01/01 to 06/30/2019	01/01 to 06/30/2018
	EUR '000	EUR '000
Interest expenses on the DBO	50	50
Expenses recognised in the Consolidated Statement of Comprehensive Income	50	50
Actuarial gains (-) / losses (+)	0	- 301
Expenses / income recognised in other comprehensive income	0	- 301
Total pension expenses	50	- 251

Other non-current provisions

	06/30/2019	12/31/2018
	EUR '000	EUR '000
Performance-dependent components	263	224
Service anniversary awards	210	179
	473	403

Please refer to Note (4.7) "Related party disclosures" in the 2018 Annual Report of Berentzen-Gruppe Aktiengesellschaft for a detailed explanation of the performance-dependent components of Executive Board compensation.

(2.5) Alcohol tax liabilities

	06/30/2019	12/31/2018
	EUR'000	EUR'000
Alcohol tax liabilities	32,275	42,277
	32,275	42,277

The amount disclosed at June 30, 2019 pertains to the domestic alcohol tax reported for the months of May and June 2019. The amount disclosed at December 31, 2018 contains the domestic alcohol tax reported for the months of November and December 2018 which, under the provisions of the German Alcohol Tax Act, fell due for payment in January and February of 2019 respectively.

(2.6) Current financial liabilities

	06/30/2019	12/31/2018
	EUR'000	EUR'000
Lease liabilities	622	0
Liabilities due to non-consolidated affiliated companies	536	541
Liabilities due to banks	371	334
Continuing Involvement	149	202
Interest liability from continuing involvement	7	9
	1,685	1,086

The liabilities to banks of EUR 371 thousand (December 31, 2018: EUR 334 thousand) are essentially the current account liabilities of a foreign subsidiary.

(2.7) Financial instruments

The cash and cash equivalents, trade receivables and other financial assets mostly have short-term residual maturities. Therefore, the carrying amounts at the reporting date are approximately equal to the fair values. For certain financial instruments assigned to the category of "at fair value through profit or loss", such as shares in affiliated companies, equity investments, and cooperative shares, amortised cost constitutes the best estimate of fair value.

The fair value of the liabilities from the syndicated loan agreement approximates the recognised value due to part of the interest being charged at variable rates on the basis of reference interest rates. The fair values of current financial liabilities, such as liabilities to nonconsolidated affiliated companies, are equal to their respective carrying amounts because they have short-term residual maturities and the effects of discounting are immaterial. The market value of derivative financial instruments (foreign exchange futures) are determined by application of the present-value method. End-of-day interest rates are applied for this purpose, and ECB reference rates are applied for the last day of the month. The fair value is attributable to Level 2 of the fair value hierarchy of IFRS 13. The fair value valuation of these items did not give rise to any effect on results (first half of 2018: positive net effect of EUR 70 thousand). Trade payables and Other liabilities generally have shorter terms. The figures disclosed approximate the fair values.

The different levels of the fair value hierarchy defined in IFRS 13 are presented below:

• Level 1: The input factors are quoted (not adjusted) prices in active markets for identical assets or liabilities, which the company can access at the measurement date.
• Level 2: The input factors are inputs other than the quoted market prices applied in Level 1, which are observable for the asset or liability, either directly or indirectly.
• Level 3: The input factors are unobservable inputs for the asset or liability.

Carrying amounts and fair values by category of financial instrument The table below shows the carrying amounts and fair values of the financial instruments reported in the consolidated half-yearly financial statements:

	06/30/2019			12/31/2018
	Category per	Carrying		Carrying
	IFRS 9	amount	Fair value	amount	Fair value
		EUR'000	EUR'000	EUR'000	EUR'000
Assets
Cash and cash equivalents	AC 1)	8,104	8,104	15,793	15,793
Trade receivables	AC	16,050	16,050	16,434	16,434
Other financial assets
Available-for-sale financial assets	FVPL 2)	448	448	448	448
Other financial assets	AC	8,843	8,843	12,266	12,266
Liabilities
Liabilities to banks	AC	7,296	7,296	7,134	7,134
Trade payables	AC	10,847	10,847	9,368	9,368
Other financial liabilities	AC	12,921	12,921	14,597	14,597

1) Amortised cost.

2) Fair Value through Profit & Loss.

(3) Explanatory notes to the Consolidated Statement of Comprehensive Income

(3.1) Revenues

Revenues are essentially generated with reference to a point in time from the sale of goods in various geographical regions and within various product groups.

	01/01 to 06/30/2019	01/01 to 06/30/2018
	EUR'000	EUR'000
Spirits segment	39,759	40,683
Non-alcoholic Beverages segment	25,293	24,124
Fresh Juice Systems segment	9,927	9,358
Other segment	4,260	4,211
Revenues	79,239	78,376

(3.2) Other operating income

	01/01 to	01/01 to
	06/30/ 2019	06/30/2018
	EUR'000	EUR'000
Reversal of liabilities (accruals)	694	794
Cost allocations / cost reimbursements	396	333
Miscellaneous other operating income	556	896
	1,646	2,023

(3.3) Other operating expenses

	01/01 to 06/30/ 2019	01/01 to 06/30/2018
	EUR'000	EUR'000
Other selling costs	8,338	8,044
Marketing, including advertising	2,809	2,874
Maintenance	1,467	1,338
Miscellaneous other operating expenses	4,651	4,939
	17,265	17,195

(3.4) Income tax expenses

	01/01 to	01/01 to
	06/30/2019	06/30/2018
	EUR'000	EUR'000
Current income taxes	1,108	1,193
Deferred taxes	79	- 86
	1,187	1,107

(4) Other explanatory notes

(4.1) Abridged Cash Flow Statement

The cash flows are explained together with the abridged Consolidated Cash Flow Statement in the Interim Group Management Report in Section 2.2.4 Economic report, Cash flows on pages 12 et seq. of these consolidated half-yearly financial statements. The abridged Consolidated Cash Flow Statement is shown separately on page 22 of these consolidated half-yearly financial statements.

(4.2) Segment report

Operating segments

The segment report is prepared in accordance with IFRS 8 "Operating Segments". This requires the operating segments to be identified on the basis of the internal management reports of the Company's divisions, the operating results of which are reviewed regularly by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.

The segment reports accord with the internal reports presented to the chief operating decision maker, the Executive Board of Berentzen-Gruppe Aktiengesellschaft. The Executive Board uses the "contribution margin after marketing budgets" as the key performance indicator. The corporate group is mainly organised and managed on the basis of product groups and sales units. The internal reporting of Berentzen-Gruppe Aktiengesellschaft is generally based on the same recognition and measurement principles as the consolidated financial statements. The segment report is organised in the same way as the internal reports.

In the segment report, the main operating units of "Domestic Branded Spirits" and "Private Label Products" in the spirits activity are grouped together to form one reporting segment, due to their similar customer groups, products and similar long-term margins.

The corporate group operated in the following segments in the 2018 financial year and the first half of the 2019 financial year:

• Spirits (domestic branded spirits and private-label products): The marketing, distribution and sale of spirits in the above-mentioned sales divisions are combined in this segment.
• Non-alcoholic Beverages: The marketing, distribution and sale of non-alcoholic beverages are combined in this segment.
• Fresh Juice Systems: Depending on the system component, the development, manufacture, marketing, distribution and sale of juicers, oranges and filling containers are combined in this segment.
• Other segments: This segment primarily includes the foreign business with branded spirits (marketing and sales) as well as the tourist and event activities of the Berentzen Group.

Segment data

The revenues of the individual segments consist of the intersegment revenues between the segments together with revenues generated with customers outside of the corporate group. The sum total of the external revenues of the individual segments yields the consolidated revenues of the corporate group. The prices and terms for the products and services exchanged between the Group companies and segments are the same as those applied with third parties.

Expenses accruing directly in the units grouped together to form the respective segment are included in the segment result "contribution margin after marketing budgets". It is possible to allocate the product-related purchased goods and services, other direct costs (shipping, packaging recycling and commissions) and marketing, including advertising, to the correct business segment. This means that the "contribution margin after marketing budgets" can be shown in full for the segments and is used as a key performance indicator in the corporate group.

In the internal reports presented to the chief operating decision maker, assets and liabilities are only presented at the Group level and are not allocated to the segments. This means that the Executive Board of Berentzen-Gruppe Aktiengesellschaft in its function as chief operating decision maker does not receive any information about segment assets.

Segment report for the period from January 1 to June 30, 2019

	01/01 to 06/30/2019
					Elimination of
					intersegment
		Non-alcoholic	Fresh Juice	Other	income/
	Spirits	Beverages	Systems	segments	expenses	Total
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Revenues with third parties	39,759	25,293	9,927	4,260		79,239
Intersegment revenues	148	16	6	16	- 186
Total revenues	39,907	25,309	9,933	4,276	- 186	79,239
Purchased goods and materials (product related only)	- 22,613	- 10,618	- 5,106	- 1,844	186	- 39,995
Other direct costs	- 2,183	- 2,529	- 625	- 91		- 5,428
Marketing, including advertising	- 1,554	- 796	- 148	- 84		- 2,582
Contribution margin after marketing budgets	13,557	11,366	4,054	2,257		31,234
Other operating income						1,646
Purchased goods and materials / change in inventories (if not included in contribution margin)						- 1,802
Personnel expenses						- 13,140
Depreciation and amortisation of assets						- 4,025
Miscellaneous other operating expenses						- 8,898
Consolidated operating profit, EBIT						5,015
Exceptional earnings effects			- 357			- 357
Financial income						72
Financial expenses						- 753
Consolidated profit before income taxes						3,977
Income tax expense						- 1,187
Consolidated profit						2,790

Segment report for the period from January 1 to June 30, 2018

	01/01 to 06/30/2018
					Elimination of intersegment
		Non-alcoholic	Fresh Juice	Other	income/
	Spirits	Beverages	Systems	segments	expenses	Total
	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000	EUR'000
Revenues with third parties	40,683	24,124	9,358	4,211		78,376
Intersegment revenues	143	15	5	5	- 168
Total revenues	40,826	24,139	9,363	4,216	- 168	78,376
Purchased goods and materials (product related only)	- 23,143	- 10,744	- 5,155	- 1,846	168	- 40,720
Other direct costs	- 2,168	- 2,210	- 628	- 125		- 5,131
Marketing, including advertising	- 1,490	- 857	- 143	- 108		- 2,598
Contribution margin after marketing budgets	14,025	10,328	3,437	2,137		29,927
Other operating income						2,023
Purchased goods and materials / change in inventories (if not included in contribution margin)						- 1,760
Personnel expenses						- 12,565
Depreciation and amortisation of assets						- 3,603
Miscellaneous other operating expenses						- 9,466
Consolidated operating profit, EBIT						4,556
Financial income						31
Financial expenses						- 790
Consolidated profit before income taxes						3,797
Income tax expense						- 1,107
Consolidated profit						2,690

(4.3) Contingent liabilities

	06/30/2019	12/31/2018
	EUR'000	EUR'000
Liabilities from guarantees	2,193	2,193
Other contingent liabilities	336	334
	2,529	2,527

Furthermore, there are liability undertakings of EUR 776 thousand (December 31, 2018: EUR 776 thousand) under customs absolute maximum-liability guarantees. The current spirits tax liabilities secured by such guarantees amounted to EUR 32,275 thousand at June 30, 2019 (December 31, 2018: EUR 42,277 thousand).

(4.4) Litigation

In connection with their ordinary business activities, the companies of the Berentzen Group are involved in legal disputes in different jurisdictions; moreover, existing legal disputes may be broadened or additional legal disputes may be initiated. These legal disputes could result in payment obligations for the companies of the Berentzen Group in the form of damages, punitive damages, or obligations to satisfy other claims, as well as penalties, fines, or disgorgements under criminal law or civil law. In isolated cases, moreover, legal disputes could lead to formal or informal exclusions from public tenders or the withdrawal or loss of government permits or approvals. Claims asserted in legal disputes bear interest, as a general rule.

The US distributor acting on behalf of the subsidiary Citrocasa GmbH (formerly T M P Technic-Marketing-Products GMBH), Linz, Austria, is asserting in connection with ongoing arbitration proceedings it initiated in the USA at the beginning of August 2018 claims including but not limited to damages arising from alleged breaches of the sales agreement in place between the parties, most recently of an amount in the low single-digit millions of euros. Broadly in the same connection, the same distributor is asserting a legal action pending before the ordinary courts in the USA since February 2019 claims for damages in connection with alleged conduct harmful to business and anti-competitive practices against Berentzen-Gruppe Aktiengesellschaft; these claims have to date been quantified as a high fivedigit euro minimum amount. The Berentzen Group and the Berentzen Group companies involved in these proceedings are currently still convinced that they have good arguments in defence against the claims asserted in this respect and will use every legal measure at their disposal to ward off these actions.

At the present time, the Berentzen Group does not expect any material adverse effects on its financial position, cash flows and financial performance to result from legal disputes not described herein. Appropriate risk provisions have been formed for these proceedings insofar as the corresponding obligation is sufficiently concretised. However, because the risks of legal disputes can be estimated only to a limited extent, the occurrence of adverse effects not covered by the respective risk provisions cannot be ruled out, as a general rule.

(4.5) Related Party disclosures

The disclosures prescribed by IAS 24 refer to dealings with related entities and persons, to the extent that they are not included in the consolidated financial statements of Berentzen-Gruppe Aktiengesellschaft as reporting entities Persons or entities related to the reporting entity within the meaning of IAS 24 specifically include companies that belong to the same corporate group as the reporting entity and persons who either control or have a significant influence over the reporting entity, or who are a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

Related persons

The members of the Executive Board and the Supervisory Board of Berentzen-Gruppe Aktiengesellschaft are related persons.

Executive Board

The compensation granted to the members of the Executive Board within the meaning of IAS 24.17 is presented below:

	01/01 to	01/01 to
	06/30/2019	06/30/2018
Type of compensation	EUR'000	EUR'000
Short-term benefits	464	459
Other long-term benefits	127	158
	591	617

Post-employment benefits of EUR 52 thousand (first half of 2018: EUR 53 thousand) were granted to former managing directors of group companies to which Berentzen-Gruppe Aktiengesellschaft is the legal successor, and their surviving dependents, in the first half of the 2019 financial year.

As calculated in accordance with IAS 19, the present value of accrued pension obligations for this group of persons amounted to EUR 763 thousand at June 30, 2019 (December 31, 2018: EUR 763 thousand).

Supervisory Board

Short-term benefits within the meaning of IAS 24.17 in the total amount of EUR 114 thousand (first half of 2018: EUR 123 thousand) were granted to the members of the Supervisory Board in their function as members of the Supervisory Board.

The employee representatives on the Supervisory Board received short-term benefits in the total amount of EUR 67 thousand (first half of 2018: EUR 72 thousand) in the first half of the financial year for their activity outside their function as members of the Supervisory Board.

Additional related party disclosures

The outstanding balances due to or from related parties at the end of the first half of the financial year at June 30, 2019 are not secured and do not bear interest. No guarantees have been provided for amounts due to or from related parties.

There were no doubtful receivables related to outstanding balances due from related parties at June 30, 2019, and therefore no provisions have been recognised for this purpose. No expenses for uncollectible or doubtful receivables due from related parties were recognised in the first half of the 2019 financial year.

(4.6) Events after the reporting date

No reportable events occurred after the end of the first half of the financial year.

Haselünne, August 13, 2019

Berentzen-Gruppe Aktiengesellschaft

The Executive Board

Oliver Schwegmann Ralf Brühöfner

Executive Board member Executive Board member

D. Declarations and Other Information

Declaration by the legal representatives

We hereby declare that, to the best of our knowledge, and in accordance with the applicable accounting principles for half-year reporting, the consolidated half-yearly financial statements give a true and fair view of the Group's financial position, cash flows and financial performance and the Interim Group Management Report provides a true and fair view of the development and performance of the Group together with a description of the principal opportunities and risks associated with the probable development of the Group in the rest of the present financial year.

Haselünne, August 13, 2019

Berentzen-Gruppe Aktiengesellschaft

The Executive Board

Oliver Schwegmann Ralf Brühöfner

Executive Board member Executive Board member

Information about the publisher

Berentzen-Gruppe Aktiengesellschaft Ritterstrasse 7 49740 Haselünne Germany T: +49 (0) 5961 502 0 F: +49 (0) 5961 502 268 E: berentzen@berentzen.de

Internet: www.berentzen-gruppe.de/en

Publication date: August 13, 2019

Financial calendar 2019

January 10/11, 2019	ODDO BHF Forum in Lyon, France
February 5, 2019	Publication of preliminary business figures 2018
March 21, 2019	Publication of consolidated and separate financial statements and 2018 Annual Report
May 7, 2019	Publication of the Q1/2019 Interim Report
May 14/15, 2019	Equity Forum Spring Conference 2019 (DVFA) in Frankfurt/Main, Germany
May 22, 2019	Annual general meeting in Hanover, Germany
August 13, 2019	Publication of the 2019 Group Semiannual Report
September 23-25, 2019	Berenberg and Goldman Sachs Eighth German Corporate Conference in Munich, Germany
October 24, 2019	Publication of the Q3/2019 Interim Report
November 25-27, 2019	German Equity Forum in Frankfurt/Main, Germany

Public Relations / Press T: +49 (0) 5961 502 215 F: +49 (0) 5961 502 550 E: pr@berentzen.de

Investor Relations T: +49 (0) 5961 502 219 F: +49 (0) 5961 502 550 E: ir@berentzen.de

At August 13, 2019. The financial calendar is provided for information purposes only and will be regularly updated. It is subject to change.

Disclaimer

This report also contains forward-looking statements. These are based on management assumptions, estimates and expectations at the time of this report's publication regarding future company-related developments. They therefore carry risks and uncertainties which are named and explained, particularly (but not exclusively) as part of the management report within the risk and opportunities report and the forecast report. Events and results that actually occur thereafter may therefore significantly differ from the forward-looking statements, both positively and negatively. Many uncertainties and resulting risks are characterised by circumstances that are beyond the control and influence of Berentzen-Gruppe Aktiengesellschaft and cannot be estimated with certainty. These include changing market conditions and their economic development and effect, changes in financial markets and exchange rates, the behaviour of other market actors and competitors and legal changes or political decisions by regulatory and governmental authorities. With regard to the forward-looking statements, unless otherwise required by law, Berentzen-Gruppe Aktiengesellschaft assumes no obligation to make any corrections or adjustments based on facts arising after the time of this report's publication. No guarantee or liability, neither expressed nor implied, is assumed for the currency, accuracy or completeness of the forward-looking statements. The trademarks and other brand names that are used in this report and may be protected by third parties are governed by the provisions of the applicable trademark law and the rights of the registered owners. The copyright and reproduction rights for trademarks and other brand names created by Berentzen-Gruppe Aktiengesellschaft itself remain with the company unless it expressly agrees otherwise.

This report is also available in English translation for information purposes. In the event of discrepancies the German version alone is authoritative and takes precedence over the English.

Berentzen-Gruppe Aktiengesellschaft

Ritterstrasse 7 49740 Haselünne Germany T: +49 (0) 5961 502 0 F: +49 (0) 5961 502 268 E: berentzen@berentzen.de Internet:www.berentzen-gruppe.de/en/