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Bertrandt AG Interim / Quarterly Report 2011

Feb 13, 2012

59_10-q_2012-02-13_d0ca671e-0bd5-42da-abff-231294f120a9.pdf

Interim / Quarterly Report

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CI-809-01.12-A

Bertrandt AG Birkensee 1, 71139 Ehningen Germany Telephone +49 7034 656-0 Telefax +49 7034 656-4100 www.bertrandt.com [email protected]

Report on the 1st quarter – 1 October until 31 December 2011

THE FIRST QUARTER AT A GLANCE

The global economy entered 2011 on an upbeat note and did not deteriorate until the second half of the year in the face of the looming sovereign debt crisis in a number of eurozone countries. In the final quarter of 2011, the automotive industry continued to grow appreciably around the world accompanied by rising passenger vehicle sales. Heavy demand particularly came from the BRIC nations – Brazil, Russia, India and China – with China remaining a growth market. The Bertrandt Group performed well again in the first quarter of fiscal 2011/2012. The highlights of its business were as follows:

In the first three months of fiscal 2011/2012, revenues rose by 27.8 percent over the same period in the previous year to EUR 160.955 million (previous year

  • EUR 125.908 million).
  • (previous year 9.6 percent).

  • Operating profit also increased, coming to EUR 15.517 million in the first

  • quarter (previous year EUR 12.125 million), equivalent to a margin of 9.6 percent
  • In the period under review, Bertrandt recorded earnings after income tax of EUR 10.782 million (previous year EUR 8.623 million).
  • Earnings per share came to EUR 1.07 in the first quarter (previous year EUR 0.86).

With total assets standing at EUR 307.003 million (EUR 294.735 million as of 30 September 2011), the equity ratio came to 57.7 percent (56.4 percent as of 30 September 2011). Capital spending rose to EUR 12.355 million (previous year EUR 5.266 million), while free cash flow came to EUR 7.458 million (previous year EUR 1.606 million). As of 31 December 2011, the number of employees had risen by 381 over the end of fiscal 2010/2011 to 8,984.

With its customer and branch-oriented approach to the market, Bertrandt is systematically continuing to pursue its growth strategy. The engineering market is offering interesting conditions in Germany in particular thanks to the numerous innovations and challenges such as efforts to reduce CO2 emissions and the development of new drive technologies. Looking forward, Bertrandt continues to see strong potential for positioning itself successfully in the market.

FINANCIAL OVERVIEW
FIGURES IFRS 1.10.11-31.12.11 1.10.10-31.12.10
Income statement
Revenues (EUR million) 160.955 125.908
Operating profit (EUR million) 15.517 12.125
Profit from ordinary activities (EUR million) 15.724 12.313
Earnings after income tax (EUR million) 10.782 8.623
Cash flow statement
Free cash flow (EUR million) 7.458 1.606
Capital spending (EUR million) 12.355 5.266
Balance sheet
Capital and reserves on 31 December (EUR million) 177.096 144.627
Equity ratio on 31 December (%) 57.7 57.7
Share
Share price on 31 December (EUR)* 51.49 55.11
Share price high (EUR)** 51.90 57.25
Share price low (EUR)** 33.00 41.15
Employees
Numbers of employees at Bertrandt Group
on 31 December 8,984 7,017

*Closing price in Xetra trading **In Xetra trading

FIGURES

QUARTERLY REPORT

Group management report Interim consolidated financial statements Condensed consolidated notes Quarerly survey Financial calendar Credits 06 13 18 21 22 22

1 60. 955

EUR millio n were the revenu es generated by B ertrandt i n the first quarter of the fiscal 2011/ 2012.

Sector trends

Against a challenging backdrop, the worldwide automotive industry expanded in the final three months of 2011, with demand for global passenger vehicles rising steadily towards the end of the year. China remained a growth market. According to the German Federal Automotive Industry Association (VDA), the number of passenger vehicles sold in China in 2011 came to 12.2 million, eight percent up on the previous year. The Japanese passenger vehicle market recovered faster than expected, while the Indian market also performed encouragingly, with volumes up just under nine percent over the previous year. At 12.7 million, unit sales in the United States rose by ten percent year on year in 2011. New passenger car registrations remained more or less stable in Europe, coming to over 12.8 million in 2011. Whereas the German passenger car market expanded by six percent in December 2011, unit sales in the other major Western European markets fell slightly short of the previous year. All in all, German automotive OEMs in particular are in good condition thanks to strong foreign demand and are stepping up their spending on new technologies. They are continuing to pursue their strategy of high model and version diversity. At the same time, they are attaching particular importance to such factors as quality, optimised fuel consumption, safety, comfort and design. To this end, they are working intensively on different drive technologies to meet the statutory requirements stipulating fuel-efficient and CO2-reduced mobility.

Business performance

The Bertrandt Group continued to perform well in the first three months of fiscal 2011/2012, generating revenues of EUR 160.955 million (previous year EUR 125.908 million), equivalent to an increase of 27.8 percent. All of the Group's divisions – Digital Engineering, Physical Engineering and Electrical Systems/Electronics – achieved growth over the previous year. The underpinnings for this were provided by the Group's strategic orientation, which combines a customer and branch-oriented approach to the market with Group-wide specialist units. New drive technologies as well as growing model diversity continue to be crucial forces for market growth.

Foreign operations

With its non-domestic branches in Europe and the United States as well as project-based activities in the BRIC countries, Bertrandt pursues a strategy of ensuring the sharpest possible focus on the customer. The close organisational link-up with its branches in Germany enables Bertrandt to offer its customers a complete range of its services so as to devise solutions rapidly and efficiently. Furthermore, Bertrandt supports its customers as and when required with varying projects anywhere in the world.

Business model and strategy

As one of Europe's leading engineering partners, Bertrandt devises tailored solutions together with customers at 38 locations in their immediately vicinity. The range of automotive industry services goes from the development of single components to complex modules and systems through to derivatives combined with comprehensive services related to development work. Its customer base comprises nearly all European manufacturers as well as leading systems suppliers. In the aviation sector, Bertrandt concentrates on structural, cabin and systems development in transnational projects. With Bertrandt Services, furthermore, the Company provides technological and commercial services as well as project solutions outside the mobility industry in the energy, machinery and plant engineering sectors, medical technology and IT sector throughout Germany. A broad range of services combined with consistency and confidence are key success factors to Bertrandt that cause customer relationships to thrive.

Spurred by a wide diversity of models and variants as well as environmentally friendly drive technologies, the complexity of individual mobility solutions in the automotive and aviation sectors is steadily increasing. Trends for instance towards environmentally friendly power, comfort, safety and driving dynamics call for overarching technical know-how and interlinked thinking in product development. As a provider helping to shape mobility that is focused on the future, Bertrandt always adapts its range of services to customer requirements as well as to the changing market conditions. In order to meet complex demands in terms of new materials, intelligent electronic systems and modern powertrains, Bertrandt pooled key subject areas in specialist departments. In addition to conventional engineering areas such as bodywork, interior and simulation, the range comprises such specialist areas as electronics, engineering services, modelmaking and rapid technologies, powertrains and testing. This linking across disciplines and further development of knowledge gives the Company its status as one of the leading European partners on the market for development services. Its many years of knowhow give our Bertrandt Services subsidiary a solid foundation upon which to realise customised development solutions in new sectors and to take these forward.

Trends in the economy

The global economy entered 2011 on an upbeat note and did not deteriorate until the second half of the year in the face of the looming sovereign debt crisis in a number of eurozone countries. The uncertainty that weighed on sentiment in the global economy continued in the final quarter of 2011. All told, however, the global economy grew by 3.8 percent in 2011 according to a forecast of the Kiel Institute for the World Economy (IfW).

The growth rates of the Asian and Latin American emerging markets buoyed the global economy. According to the IfW winter forecast, gross domestic product in the eurozone widened by only 1.5 percent in 2011. As expected, growth in Germany slowed somewhat towards the end of the year. All in all, Germany's gross domestic product increased by 2.9 percent in 2011 according to IfW. Other European countries such as Greece, Ireland and Portugal are feeling the pressure of heavy debt loads and achieved, at most, only small growth rates.

3.8 percent was the growth rate of the global economy in the year 2011.

GROUP MANAGEMENT REPORT

27.8

percent was the increase of revenues in the first quarter of fiscal 2011/2012 in comparison to the previous year.

175.000
150.000
125.000
100.000
75.000
50.000
25.000
0

In the first three months of fiscal 2011/2012, capital spending climbed to EUR 12.355 million (previous year EUR 5.266 million), reflecting the Bertrandt Group's business possibilities and prospects. Receivables and liabilities were driven up by the greater volume of business. Against this backdrop, free cash flow amounted to EUR 7.458 million (pre-

vious year EUR 1.606 million).

Earnings situation

In the first quarter of fiscal 2011/2012, Bertrandt's operating profit surged by 28 percent to EUR 15.517 million (previous year EUR 12.125 million), equivalent to a margin of 9.6 percent (previous year 9.6 percent). At EUR 0.207 million (previous year EUR 0.188 million), net finance income/expense remained positive. As a result, profit from ordinary business activities rose to EUR 15.724 million in the period under review (previous year EUR 12.313 million). Based on a tax rate of 30.3 percent, the Company generated earnings after income tax of EUR 10.782 million (previous year EUR 8.623 million).

Expenses in the first three months of the year broke down as follows: Driven by business growth, the cost of materials climbed to EUR 16.412 million (previous year EUR 12.863 million). The staff cost ratio remained steady at 68.8 percent (previous year 68.8 percent). All told, staff costs came to EUR 110.778 million in the period under review (previous year EUR 86.629 million). Other operating expenses were also up for growth-related reasons, climbing to EUR 17.018 million in the period under review (previous year EUR 13.138 million).

Financial and asset situation

As of 31 December 2011, total assets increased by EUR 12.268 million to EUR 307.003 million (EUR 294.735 million as of 30 September 2011) on account of additional business volumes. The individual items of the balance sheet break down as follows: Non-current assets were valued at EUR 89.507 million as of the balance sheet date (EUR 83.638 million as of 30 September 2011). Current assets amounted to EUR 217.496 million (EUR 211.097 million as of 30 September 2011). On the other side of the balance sheet, current liabilities rose marginally to EUR 111.423 million (EUR 110.710 million as of 30 September 2011). Equity rose in the first three months of fiscal 2011/2012, coming to EUR 177.096 million as of 31 December 2011 (EUR 166.246 million as of 30 September 2011). With an equity ratio of 57.7 percent (56.4 percent as of 30 September 2011), Bertrandt is among the best-funded companies in the automotive sector.

Free cash flow (1st quarter) EUR million
07/08
16.000
12.000
8.000
4.000
0
Capital spending (1st quarter) EUR million
07/08 08/09 09/10 10/11 11/12
16.000
12.000
8.000
4.000
0
5.480 9.145 2.012 5.266 12.355

307.003 EUR million were the total assets on 31 December 2011.

60
50
40
30
20
10
0
16.000
12.000
8.000
4.000
0

Operating profit (1st quarter) EUR million

Human Resources

Bertrandt continued to recruit new employees in the first quarter of fiscal 2011/2012. As of 31 December 2011, the Group had 8,984 employees, an increase of 1,967 over the same period one year earlier (7,017 employees as of 31 December 2010). Compared with the end of fiscal 2010/2011, the workforce was up by 381 (8,603 employees as of 30 September 2011). The latest information on human resources management can be found in the "Careers" section of Bertrandt's website at www.bertrandt.com.

The Bertrandt share

The DAX was extremely volatile in the period under review, fluctuating between 5,125 points (on 4 October 2011) and 6,430 points (on 28 October 2011), while the SDAX moved in a range between 4,133 and 4,661 points. The Prime Automobile Performance Index traded between 590 and 798 points. This particularly reflects the general uncertainty surrounding the European debt crisis and related fears of a recession. Despite the difficult environment, Bertrandt's share performed encouragingly in the first quarter of fiscal 2011/2012. After hitting a low of EUR 33.00 in Xetra trading on 4 October 2011, it reached a high for the quarter of EUR 51.90 on 28 December 2011, closing the quarter at EUR 50.71 in Xetra trading on 30 December 2011.

381 new employees were recruited in the first quarter of fiscal 2011/2012.

Employees (on 31 December) number

50.71

EUR was the price at which the Bertrandt share closed in Xetra trading on 31 December 2011.

Analysts' ratings of the Bertrandt share and information on our Company can be found at www.bertrandt.com under Investor Relations.

Risk report

As an engineering service provider operating on an international scale, the Bertrandt Group is exposed to a wide variety of risks. All pertinent facts were comprehensively reported in the fiscal 2010/2011 annual report. The European financial crisis and resultant fears of a recession stood in the way of any improvement in underlying economic conditions in the first quarter of fiscal 2011/2012. This was exacerbated by fears that the United States might yet slide into a recession. At this stage, it is difficult to estimate what impact the crisis will have on the global economy. To be sure, the risk of an economic setback actually occurring will rise the longer uncertainty persists in the financial markets and concerns that politicians do not have any sustainable answers to the debt crisis. These potential risks could impact adversely on global trade and on the export-oriented German economy. As a result, the volume of research and development work could decrease, with the major automotive manufacturers changing their outsourcing strategy as a consequence. There was no increase in the probability of these risks arising for Bertrandt in the first quarter of fiscal 2011/2012. A broad strategic alignment as well as the Bertrandt Group's solid financial base form a stable foundation for business growth.

Forecast and outlook

While leading forecasting institutes expect global economic growth to weaken, they expect overall growth to continue. IfW expects global gross domestic product to grow by 3.4 percent in 2012 as a whole, with Brazil, Russia, India and China in particular continuing to make a large contribution. Performance within the eurozone will vary from region to region: the German economy should grow slowly by 0.5 percent. Other countries such as Greece, Ireland and Portugal are feeling the effects of weak economic growth and the precarious state of their public-sector budgets. Against this backdrop, IfW expects the eurozone economy as a whole to contract by 0.1 percent year on year in 2012.

3.4

percent growth rate is estimated for the global economy in the year 2012 according to the IfW.

Experts assume that automotive OEMs will perform disparately but remain upbeat in their outlook for premium manufacturers. To maintain their leading global market position, manufacturers will presumably step up their investment in research and development involving new technologies and models. According to VDA, the global automotive market will rise by four percent to around 68 million passenger vehicles sold in 2012. Further growth is expected in the emerging markets, particularly China.

The US automotive market proved to be very robust in 2011 and unemployment declined to 8.5 percent in December 2011. VDA expects the US automotive market to grow by around five percent in 2012 to 13.4 million units. Given the unabated strong demand for exports, a further boost in demand is forecast for the German automotive industry. All automotive OEMs are continuing to pursue their strategy of investing more heavily in the development of new drive technologies. Spurred by strong pressure from governments and customers to innovate, the major automotive manufacturers and system suppliers are continuing to work hard on all drive technologies that will be viable in the future. At the same time, they are broadening their model line-ups to satisfy specific regional and customer preferences as effectively as possible.

Provided that the underlying economic conditions do not deteriorate any further, that OEMs invest on a sustained basis in research for and development of new technologies and models, that development work continues to be outsourced and that qualified staff is available, Bertrandt expects its revenues and earnings to rise in the current fiscal year. All segments should contribute to this growth.

With its solid business foundations, Bertrandt is endeavouring to enhance its enterprise value on an enduring and sustained basis. The objective is to systematically pursue its strategy of growing in the automotive and aviation industries as well as in the energy, plant, mechanical and electrical engineering sectors and of positioning the Company successfully in the engineering market.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated income statement and statement of comprehensive income EUR million
1.10. until 31.12.
I. Income statement
Revenues
Other internally generated assets
Total revenues
Other operating income
Raw materials and consumables used
Personnel expenses
Depreciation
Other operating expenses
Operating profit
Share of profit in associates
Interest income/expense
Other financial result
Net finance income
Profit from ordinary activities
Other taxes
Earnings before tax
Income taxes
Earnings after income tax
– attributable to minority interest
– attributable to shareholders of Bertrandt AG
Number of shares (million) – diluted/basic, average weighting
Earnings per share (EUR) – diluted/basic

II. Statement of comprehensive income

Earnings after income tax

Exchange rate differences

Changes in fair value due to hedging instruments Tax effects of changes in fair value

Total comprehensive income

– attributable to minority interest

– attributable to shareholders of Bertrandt AG

2011/2012 2010/2011
160.955 125.908
0.037 0.040
160.992 125.948
1.985 1.427
-16.412 -12.863
-110.778 -86.629
-3.252 -2.620
-17.018 -13.138
15.517 12.125
-0.001 0.030
-0.008 -0.002
0.216 0.160
0.207 0.188
15.724 12.313
-0.251 -0.139
15.473 12.174
-4.691 -3.551
10.782 8.623
0 0
10.782 8.623
10.049 10.040
1.07 0.86
10.782 8.623
0.127 0.055
-0.084 0
0.025 0
10.850 8.678
0 0
10.850 8.678
31.12.2011 30.09.2011
Assets
Intangible assets 12.303 11.486
Property, plant and equipment 64.076 56.339
Investment properties 1.852 1.869
Investments accounted for using the equity method 0.187 0.824
Other financial assets 6.193 7.127
Receivables and other assets 1.932 2.860
Income tax assets 0.729 0.720
Deferred taxes 2.235 2.413
Non-current assets 89.507 83.638
Inventories 0.568 0.528
Future receivables from construction contracts 33.361 37.927
Receivables and other assets 139.120 135.717
Income tax assets 0.248 0.248
Cash and cash equivalents 44.199 36.677
Current assets 217.496 211.097
Total assets 307.003 294.735
Equity and liabilities
Issued capital 10.143 10.143
Share premium 26.625 26.625
Retained earnings 106.973 106.905
Consolidated distributable profit 33.353 22.571
Equity to attributable shareholders of Bertrandt AG 177.094 166.244
Minority interests 0.002 0.002
Capital and reserves 177.096 166.246
Provisions 6.673 6.616
Other liabilities 0.487 0.495
Deferred taxes 11.324 10.668
Non-current liabilities 18.484 17.779
Tax provisions 5.014 3.839
Other provisions 27.423 43.921
Borrowings 0.323 0.466
Trade payables 10.662 10.491
Other liabilities 68.001 51.993
Current liabilities 111.423 110.710
Total equity and liabilities 307.003 294.735

Consolidated balance sheet EUR million

Issued
capital
Share
premium
Retained earnings Consoli
dated
distri
butable
profit
Equity
attribu
table
to share
holders of
Bertrandt
AG
Minority
interests
Total
Non-dis
tributed
earnings
Currency
translation
reserve
Treasury
shares
Hedging
instru
ments
Total
retained
earnings
Value on 1.10.2011 10.143 26.625 110.148 -2.149 -0.975 -0.119 106.905 22.571 166.244 0.002 166.246
Earnings after income tax 10.782 10.782 10.782
Other earnings 0.127 -0.059 0.068 0.068 0.068
Total comprehensive Income 0.127 -0.059 0.068 10.782 10.850 10.850
Value on 31.12.2011 10.143 26.625 110.148 -2.022 -0.975 -0.178 106.973 33.353 177.094 0.002 177.096
Previous year
Value on 1.10.2010 10.143 26.625 81.697 -2.156 -1.477 0 78.064 21.115 135.947 0.002 135.949
Earnings after income tax 8.623 8.623 8.623
Other earnings 0.055 0.055 0.055 0.055
Total comprehensive Income 0.055 0.055 8.623 8.678 8.678
Value on 31.12.2010 10.143 26.625 81.697 -2.101 -1.477 0 78.119 29.738 144.625 0.002 144.627

Consolidated statement of changes in equity EUR million

1.10. until 31.12. 2011/2012 2010/2011
1. Net profit for the period (including minority interests)
before exceptionals 10.782 8.623
2. Income taxes 4.691 3.551
3. Interest income/expense 0.008 0.002
4. Other net financial result -0.216 -0.160
5. Share of profit in associates 0.001 -0.030
6. Depreciation of non-current assets 3.252 2.620
7. Increase/decrease in provisions -15.284 -9.826
8. Other non-cash income/expense -0.130 -0.128
9. Profit/loss from disposal of non-current assets 0.034 0.033
10. Increase/decrease in inventories, future receivables under construction contracts, trade receivables
and other assets as well as other assets not assigned to investing or financing activities 3.118 -7.419
11. Increase/decrease in trade payables and other liabilities not assigned to investing
or financing activities 14.995 15.000
12. Income tax received/paid -2.571 -5.801
13. Interest paid -0.001 0
14. Interest received 0.187 0.145
15. Cash flows from operating activities (1. -14.) 18.866 6.610
16. Payments received from disposal of property, plant and equipment 0.182 0.061
17. Payments received from the disposal of financial assets 0.975 0.201
18. Payments made for investments in property, plant and equipment -10.837 -4.738
19. Payments made for investments in intangible assets -1.193 -0.439
20. Payments made for investments in financial assets -0.325 -0.089
21. Payouts stemming from the purchase of consolidated companies and other business units -0.210 0
22. Cash flows from investing activities (16.-21.) -11.408 -5.004
23. Payment received from the sale of treasury shares 0 0
24. Payments made to shareholders and minority shareholders 0 0
25. Payments made for acquisition of treasury shares 0 0
26. Payments received from issue of debt instruments and raising of loans 0 0
27. Payments made for discharging debt instruments and repaying loans 0 0
28. Cash flows from financing activities (23.-27.) 0 0
29. Changes in cash and cash equivalents (15. +22.+ 28.) 7.458 1.606
30. Effect of exchange rate changes on cash and cash equivalents 0.064 0.013
31. Cash and cash equivalents at beginning of period 36.677 48.081
32. Cash and cash equivalents at end of period (29. -31.) 44.199 49.700

Consolidated cash flow statement EUR million

Digital Engineering Physical Engineering Electrical Systems/
Electronics
Total of all divisions
1.10. until 31.12. 2011/2012 2010/2011 2011/2012 2010/2011 2011/2012 2010/2011 2011/2012 2010/2011
Revenues 101.585 80.454 28.901 21.922 32.652 25.738 163.138 128.114
Transfer between segments 1.439 1.193 0.305 0.344 0.439 0.669 2.183 2.206
Consolidated revenues 100.146 79.261 28.596 21.578 32.213 25.069 160.955 125.908
Operating profit 8.387 6.947 3.439 2.333 3.691 2.845 15.517 12.125

Consolidated segment report EUR million

Astrid Fleischer 60 60
Daniela Brei 172 172
Prof. Dr.-Ing. Wilfried Sihn 0 0
Horst Binnig 0 0
Maximilian Wölfle 0 0
Supervisory Board Dr. Klaus Bleyer 0 0
Ulrich Subklew 0 0
Management Board Dietmar Bichler 801,094 801,094
Balance at 31.12.2011 Balance at 30.09.2011

Shares owned by members of the Management and Supervisory Boards number

Options are not disclosed here as there is currently no option programme.

In addition to Bertrandt AG, the consolidated financial statements include all operating subsidiaries under the legal and constructive control of Bertrandt AG. This specifically entails the following German companies: the Bertrandt Ingenieurbüro GmbH companies in Gaimersheim, Ginsheim-Gustavsburg, Hamburg, Cologne, Munich, Neckarsulm, Tappenbeck, Bertrandt Technikum GmbH, Bertrandt Projektgesellschaft mbH and Bertrandt Services GmbH in Ehningen. Moreover, ZR-Zapadtka + Ritter Geschäftsführungs GmbH and, for the first time, Bertrandt Aeroconseil GmbH were consolidated in the interim financial statements.

In addition the foreign subsidiaries Bertrandt France S.A. in Paris/Bièvres, Bertrandt S.A.S. in Paris/Bièvres, Bertrandt UK Ltd. in Dunton, Bertrandt Sweden AB in Trollhättan, Bertrandt US Inc. in Detroit and Bertrandt Otomotiv Mühendislik Hizmetleri Ticaret Ltd. Sti. in Istanbul, were consolidated in the interim report.

Companies on which Bertrandt exercises material but not dominant influence are accounted for using the equity method as associated companies in the interim report. These are Bertrandt Entwicklungen AG & Co. OHG, Bertrandt Automotive GmbH & Co. KG, aucip. automotive cluster investment platform GmbH & Co. KG and aucip. automotive cluster investment platform Beteiligungs GmbH.

Accounting priniciples

The presented consolidated interim financial statements as at 31 December 2011 were prepared based on International Accounting Standards (IAS) 34 "Interim Financial Reporting", in principle applying the same reporting methods as in the Annual Report on the 2010/2011 financial year. The provisions of the German Commercial Code over and above Section 315a (1) of the German Commercial Code as well as all the standards and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), which are subject to mandatory application in fiscal 2011/2012, have been considered.

A detailed description of these methods is published in the notes to the consolidated financial statements of the Annual Report for fiscal 2010/2011. This is also accessible on the internet at www.bertrandt.com.

Standard/
Interpretation
Compulsory
application
Expected
effects
Amendments IFRS 1: severe hyperinflation 01.07.2011 None
and removal of fixed datas
IFRS 7* Amendment to IFRS 7: disclosures in the 01.01.2013 Disclosures
notes Finanzinstrumente in the notes
IFRS 9* Financial instruments 01.01.2015 Classification,
measurement**
IFRS 10* Consolidated financial statements 01.01.2013 None
IFRS 11* Joint arrangements 01.01.2013 None
IFRS 12* Disclosures of interests in other entities 01.01.2013 None
IFRS 13* Fair value measurement 01.01.2013 Disclosures
in the notes
IAS 1* Presentation of items of other comprehensive 01.07.2012 None
incomes
IAS 12* Deferred taxes: realisation of the underlying 01.01.2012 None
assets
IAS 19* Employee benefits 01.01.2013 Disclosures
in the notes
IAS 27* Separate financial statements 01.01.2013 None
IAS 28* Investments in associates and joint ventures 01.01.2013 Disclosures
in the notes
IAS 32* Financial assets net of financial liabilities 01.01.2014 Disclosures
in the notes
IFRIC 20* Cost of earth removal during open-cut mining 01.01.2013 None

The consolidated financial statements of Bertrandt Aktiengesellschaft, registered at Birkensee 1, 71139 Ehningen, Germany (register number HRB 245259, commercial register of the local court of Stuttgart), for the year ending 30 September 2011 were prepared using the International Financial Reporting Standards (IFRS) as applicable after the reporting date and as endorsed by the European Union (EU). NOTES IFRS 1*

This interim report was compiled in euros. Unless stated otherwise, all amounts are shown in millions of euros (EUR million).

International Financial Reporting Standards and Interpretations that are subject to mandatory application as of fiscal 2011/2012

The following table sets out the International Financial Reporting Standards and Interpretations that are subject to mandatory application as of fiscal 2011/2012.

The new standards and interpretations that are subject to mandatory application have no effect on the interim report.

International Financial Reporting Standards and Interpretations that have been published but are not yet mandatory

The following standards and interpretations have already been adopted by the International Accounting Standards Board (IASB) and partly approved by the EU but they were not yet mandatory in the fiscal 2011/2012. Bertrandt will apply them as of the accounting period for which they become mandatory.

Standard/
Interpretation
Compulsory
application
IFRS 7 Amendments to IFRS 7: disclosures in the notes 01.07.2011
IAS 24 Disclosures on related parties 01.01.2011
IFRIC 14 Prepayments of existing minimum funding requirments 01.01.2011
Improvement Individual amendments Individual
to IFRS amendments

CONDENSED CONSOLIDATED

QUARTERLY SURVEY

Revenues
Other internally generated assets
Total revenues
Other operating income
Raw materials and consumables used
Personnel expenses
Depreciation
Other operating expenses
Operating profit
Net finance income
Profit from ordinary activities
Other taxes
Earnings before tax
Income taxes
Earnings after income tax
– attributable to minority interest
– attributable to shareholders to Bertrandt AG
Number of shares in million –
diluted/basic, average weighting

Consolidated income statement EUR million

Q1 11/12 Q4 10/11 Q3 10/11 Q2 10/11 Q1 10/11
160.955 161.870 146.600 141.860 125.908
0.037 0.164 0.095 0.080 0.040
160.992 162.034 146.695 141.940 125.948
1.985 2.088 2.531 2.603 1.427
-16.412 -15.330 -13.840 -13.362 -12.863
-110.778 -109.561 -103.702 -99.228 -86.629
-3.252 -3.135 -2.878 -2.720 -2.620
-17.018 -17.431 -15.002 -13.496 -13.138
15.517 18.665 13.804 15.737 12.125
0.207 0.130 0.126 0.165 0.188
15.724 18.795 13.930 15.902 12.313
-0.251 -0.194 -0.364 -0.233 -0.139
15.473 18.601 13.566 15.669 12.174
-4.691 -5.848 -4.305 -4.351 -3.551
10.782 12.753 9.261 11.318 8.623
0 0 0 0 0
10.782 12.753 9.261 11.318 8.623
10.049 10.049 10.049 10.040 10.040
1.07 1.27 0.92 1.13 0.86

As of 1 October 2011, Bertrandt AG acquired a further 50 percent of the capital of Bertrandt Aeroconseil GmbH, meaning that it now holds 100 percent of its shares. The purchase price amounted to EUR 0.500 million. The fair values of the assets and liabilities acquired match their carrying amounts. The assets of EUR 5.958 million include intragroup receivables of EUR 0.433 million. The liabilities of EUR 4.931 million include liabilities to Group companies of EUR 3.638 million.

Currency translation

The single-entity financial statements of subsidiaries applying a functional currency other than the euro were translated into the Group's functional currency in accordance with IAS 21. As the subsidiaries carry out their business independently for financial, commercial and organisational purposes, the functional currency is identical to the currency of the country in which they are based.

Accordingly, these companies' assets and liabilities are presented in the consolidated interim financial statements at the mean end-of-period exchange rate, while expenses and income are translated using the average exchange rate of the period under report. Any currency differences from this as well as the translation of amounts brought forward from the previous year are charged to equity.

Foreign-currency transactions are translated into the functional currency using the exchange rates prevailing on the date of the transaction. Gains and losses from the settlement of such transactions as well as the transaction-date translation of monetary assets and liabilities held in a foreign currency are taken to the income statement.

The parities of the key currencies relative to the Euro were as follows:

Material events occurring after the end of the interim reporting period

There were no key events occurring after the end of the period covered by this interim report that are not shown in the financial statements for the three-month reporting period from 1 October 2011 to 31 December 2011.

German Corporate Governance Code

The current declarations pursuant to Section 161 of the German Public Companies Act on the German Corporate Governance Code by the Management and Supervisory Boards of Bertrandt AG are accessible on www.bertrandt.com

Average rate on balance
sheet date
Average rate Q1
31.12.2011 31.12.2010 2011/2011 2010/2011
United Kingdom GBP 0.8367 0.8520 0.8572 0.8597
Sweden SEK 8.9171 8.9788 9.0914 9.2172
Turkey TRY 2.4460 2.0517 2.4771 1.9880
United States USD 1.2932 1.3122 1.3485 1.3597

Currency tranlation relative to one euro

Annual General Meeting

15 February 2012 10:30 City Hall Sindelfingen

Report on the 2nd quarter 2011/2012

9 May 2012

7th Capital Market Day

9 May 2012 Ehningen

Report on the 3rd quarter 2011/2012

14 August 2012

Annual report 2011/2012 Annual press and analysts' conference

6 December 2012 Stuttgart/Frankfurt

Annual General Meeting

20 February 2013 10:30 City Hall Sindelfingen Published and edited by

Bertrandt AG

Birkensee 1, D-71139 Ehningen Telephone +49 7034 656-0 Telefax +49 7034 656-4100

www.bertrandt.com [email protected]

HRB 245259 Amtsgericht Stuttgart

Contact

Sabrina Förschler Investor Relations Telephone +49 7034 656-4201 Telefax +49 7034 656-4488 [email protected]

Anja Schauser Corporate Communication Telephone +49 7034 656-4037 Telefax +49 7034 656-4090 [email protected]

Design, layout and production

SAHARA Werbeagentur, Stuttgart www.sahara.de

Lithography and printing

Metzger Druck, Obrigheim

Photos

Andreas Körner, Stuttgart Fotolia

FINANCIAL CALENDAR

CREDITS

Legal Notice

This report contains inter alia certain foresighted statements about future developments, which are based on current estimates of management. Such statements are subjected to certain risks and uncertainties. If one of these factors of uncertainty or other imponderables should occur or the underlying accepted statements proved to be incorrect, the actual results could deviate substantially from or implicitly from the expressed results specified in these statements. We have neither the intention nor do we accept the obligation of updating foresighted statements constantly since these proceed exclusively from the circumstances on the day of their publication.

As far as this report refers to statements of third parties, in particular analyst estimations, the organisation neither adopts these, nor are these rated or commented thereby in other ways, nor is the claim laid to completeness in this respect.