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Bertrandt AG — Interim / Quarterly Report 2017
Aug 30, 2017
59_10-q_2017-08-30_a3de278b-d848-4efa-9171-6d7bd88da076.pdf
Interim / Quarterly Report
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FISCAL 2016/2017
REPORT ON THE 3RD QUARTER 1 OCTOBER 2016 UNTIL 30 JUNE 2017
Bertrandt AG Birkensee 1, 71139 Ehningen Germany Telephone +49 7034 656-0 Telefax +49 7034 656-4100 www.bertrandt.com [email protected]
CI-1257-07.17-A
| IFRS | |||
|---|---|---|---|
| 01/10/2016– 30/06/2017 |
Changes in % |
01/10/2015– 30/06/2016 |
|
| Income statement | |||
| Revenues (EUR million) | 734.767 | 0.9 | 727.911 |
| Operating profit (EUR million) | 39.822 | -36.0 | 62.246 |
| Profit from ordinary activity (EUR million) | 38.198 | -37.4 | 60.984 |
| Earnings after income tax (EUR million) | 27.818 | -33.5 | 41.842 |
| Cash flow statement | |||
| Cash flow from operating activities (EUR million) | 10.589 | -77.6 | 47.232 |
| Cash flow from investing activities (EUR million) | -26.804 | -55.3 | -59.937 |
| Free cash flow (EUR million) | -16.215 | -27.6 | -12.705 |
| Capital spending (EUR million) | 28.979 | -54.0 | 63.065 |
| Balance sheet | |||
| Equity (EUR million) | 359.540 | 6.4 | 337.864 |
| Equity ratio (%) | 47.0 | -0.2 | 47.1 |
| Total assets (EUR million) | 764.903 | 6.5 | 717.980 |
| Share | |||
| Earnings per share (EUR) | 2.76 | -33.3 | 4.14 |
| Share price on 30 June (EUR)1 | 87.76 | -0.3 | 88.00 |
| Share price, high (EUR)2 | 98.41 | -5.9 | 104.60 |
| Share price, low (EUR)2 | 79.60 | -6.4 | 85.00 |
| Shares outstanding on 30 June (number) | 10,143,240 | – | 10,143,240 |
| Market capitalisation on 30 June (EUR million) | 890.2 | -0.3 | 892.6 |
| Employees | |||
| Number of employees at Bertrandt Group on 30 June |
12,966 | 2.3 | 12,669 |
1Closing price in Xetra trading. 2In Xetra trading.
THE FIRST THREE QUARTER AT A GLANCE
Income statement, Cash flow statement, Balance sheet, Share, Employees
_____ TABLE 01
OVERVIEW
With key technology trends continuing undiminished, the substantial drivers of Bertrandt's business performance remain valid. An increasing variety of models and variants, environmentally friendly individual mobility and connected and automated driving offer perspectives for the automotive sector in the future. Industry 4.0 opens up additional opportunities in key industries, such as the energy and electrical engineering industry, medical technology as well as the machinery and plant engineering sectors. Management believes that the currently challenging economic environment with temporary fluctuations in the demand for capacity and continuing price pressure has a temporarily adverse effect on the development of the Bertrandt Group.
The Company's key performance indicators developed as follows in the first three quarters of fiscal 2016/2017:
- Revenues rose by 0.9 percent year on year to EUR 734.767 million (previous year EUR 727.911million).
- In the period under review, Bertrandt generated an operating profit of EUR 39.822 million (previous year EUR 62.246 million). The margin amounted to 5.4 percent (previous year 8.6 percent).
- Post-tax earnings were EUR 27.818 million (previous year EUR 41.842 million). This works out to earnings per share of EUR 2.76 (previous year EUR 4.14).
- The workforce increased by 297 over the previous year to 12,966 employees (12,669 employees on 30 June 2016).
- Capital expenditure amounted to EUR 28.979 million (previous year EUR 63.065 million and EUR 83.404 million as at 30 September 2016).
- With an equity ratio of 47.0 percent (previous year 47.1 percent), Bertrandt is one of the solid companies in the automotive sector.
- Total assets were EUR 764.903 million (EUR 763.314 million as at 30 September 2016)
- Free cash flow totalled EUR -16.215 million (previous year EUR -12.705 million).
As one of Europe's leading engineering specialists, Bertrandt is a reliable partner for current and future projects across all fields of research and development. The Company provides each customer with a comprehensive range of services with customised and all-in solutions along the entire product engineering process. The customer has the benefit of the expertise of the entire Company, which is available to customers through their local Bertrandt subsidiary because Bertrandt's Competence Centre structure is replicated throughout the Group.
- 06
- 15
- 20 Condensed Consolidated Notes
- 25 Quarterly Survey
- 26 Financial Calendar
- 26
-
26 Credits
- Interim Consolidated Financial Statements
- Roadshows and Conferences
QUARTERLY REPORT
EUR MILLION REVENUE GROWTH COMPARED TO THE SAME PERIOD LAST YEAR.
BERTRANDT CONTINUES TO GROW DESPITE difficult conditions in the first nine months of FY 2016/2017.
7
THE GROUP – GENERAL INFORMATION ____
Business model and strategy
As one of Europe's leading engineering partners, Bertrandt has been devising specific and tailored solutions with customers at 54 locations in Europe, Asia and the United States for over 40 years now. Our services for the automotive and aerospace industries include all process steps in the project phases of conceptual design, CAD, development, design modelling, tool production, vehicle construction and production planning right through to start of production and production support. Furthermore, the individual development steps are validated by simulation, prototype building and testing. At our technology centres in the immediate vicinity of our customers, we manage projects of different sizes in cooperation with our customers.
The technology centres are equipped with dedicated design studios, electronics labs as well as testing facilities. Our customer base comprises nearly all European manufacturers as well as important system suppliers. We also provide technological services outside the mobility industry in such forward-looking sectors as energy, medical technology, electrical engineering as well as machinery and plant engineering throughout Germany. Consistency, reliability and capital expenditure on infrastructure and technical equipment enable our customer relationships to thrive. They continue to be key factors for Bertrandt's success. We consider ourselves an active contributor to the development of the future of mobility, and are therefore constantly adapting our range of services to customer needs as well as to changing market conditions. Bertrandt's particular strength lies in the linking up and further development of know-how In a recent study on the situation of the German automobile industry the German Association of the Automotive Industry (VDA) stated that the automobile is undergoing the most radical change in its history. According to the study digital connectivity and globalisation are continuously driving the global innovation and technology race. Mobility needs increase in all continents; sustainable and environmentally friendly vehicle concepts are in demand everywhere. As a result, spending on research and development in the automotive industry is further increasing an important trend for Bertrandt's business performance. On a worldwide basis, German automotive OEMs and suppliers are currently investing more than EUR 39 billion per year in research and development more than twice as much as ten years ago.
The civil aviation business, like in previous years, is mainly driven by global economic growth, environmental regulation at the national level and the decline in fuel prices. The two big aerospace groups, Boeing and Airbus, report an unbroken global growth trend in civil aviation. In view of the development in the first half of 2017, the German Aerospace Industries Association (BDLI) expects that the industry will maintain the high growth level achieved in the previous year throughout 2017.
In the four key industries in which Bertrandt operates apart from the automotive and aerospace sectors, the economic upturn has continued. Thus the business climate index produced by the ifo Institute (Leibniz Institute for Economic Research) at the University of Munich a key index for the energy, medical technology, electrical engineering as
GROUP MANAGEMENT REPORT
and this makes us one of the leading European partners on the market for engineering services. The engineering expertise Bertrandt has built up over many years of activity in the mobility industries provides a firm foundation upon which the Company can realise and take forward customised development solutions in new sectors.
Foreign operations
With its 13 non-domestic branches in Europe, the United States and Asia, Bertrandt pursues a strategy of ensuring a sharp focus on the customer by diversifying its locations on a project-specific basis. The close organisational link-up with its branches in Germany enables Bertrandt to offer its customers the complete range of its services. The Company will continue to invest in building up and expanding its presence abroad so as to be able to devise engineering solutions rapidly and efficiently.
REPORT ON ECONOMIC POSITION __________
Economic development
The results of the ifo World Economic Survey conducted by the ifo Institute (Leibniz Institute for Economic Research at the University of Munich) for the second quarter of 2017 showed a marked improvement of the world economic climate. The positive impulse has mainly been provided by the industrial nations where decreasing unemployment continues to boost private household consumption. In addition, businesses use the ongoing low interest rates to step up their investment activity. Given the positive economic environment in the industrial nations, the increasing commodity consumption stimulates economic activity in the newly industrialising countries.
Sector trends
New car sales worldwide developed positively in the first six months of 2017, according to the German Association of the Automotive Industry (VDA). While the US market has more or less maintained the high level of the previous year with more than 8.4 million units sold (-2.2 percent year-on-year), the Chinese passenger car market has continued to grow with new registrations nearly hitting the 11 million mark (+2.7 percent year on year). In Europe, the market continues to recover. In total, almost 8.5 million new cars were sold, which corresponds to 4.6 percent growth over the same period in the previous year.
well as machinery and plant engineering sectors rose to a new record level of 116 points in June. The companies' satisfaction with their current situation was even more pronounced than before. This assessment is also reflected in a current survey conducted by Reuters News Agency where 17 bank economists expressed their expectations about ongoing economic growth in Germany. Ultimately, the experts expect the economy to grow by 0.6 percent in the second quarter, which would be equivalent to the growth rate at the beginning of the year. In April, expectations were lower with a plus of only 0.4 percent. The German economy is thus able to maintain the high momentum it
gained in early 2017
Business performance
The challenging economic environment the Bertrandt Group was faced with is reflected in the Company's business performance in 2016/2017. Especially the exhaust gas scandal and the transformation process affect the automotive industry and lead to postponements of projects and/or temporary fluctuations in the demand for capacity as well as increasing price pressure.
54
locations worldwide belong to the Bertrandt Group.
_____ CHART 02
In the period under review Bertrandt reported an increase in revenues of 0.9 percent.
734.767
EUR million in revenues were generated in the Bertrandt Group in the first nine months of fiscal 2016/2017.
_____ CHART 05
Free cash flow was affected by temporarily increased funds tied up in current assets.
_____ CHART 04
With an equity ratio of 47.0 percent, Bertrandt is a financially strong company in the industry.
Free cash flow (Q1–Q3) EUR million 20.000 10.000 0 -10.000 -20.000 -30.000 -40.000 -50.000 -60.000 12/13 13/14 10.100 17.748
_____ CHART 06
After capex above average in the last years, the Company made necessary investments in buildings and technical equipment on a lower level.
Total revenues
In the period under review, Bertrandt generated revenues of EUR 734.767 million (previous year EUR 727.911 million), equivalent to a margin of 0.9 percent. The Digital Engineering, Physical Engineering and Electrical Systems/Electronics segments performed differently due to the heterogeneous economic conditions. Total revenues increased by EUR 7.363 million on the previous year to EUR 735.688 million.
_____ CHART 02
Key expenditure figures
Owing to the greater volume of business, expenses in the first nine months of fiscal 2016/2017 increased, breaking down as follows: The cost of materials increased to EUR 77.957 million (previous year EUR 72.502 million), with the material input depending on the individual projects. Personnel expenses also increased and attained EUR 528.006 million in the period under review (previous year EUR 514.059 million). The staff cost ratio was 71.8 percent (previous year 70.6 percent). The investment in infrastructure caused other operating expenses to rise to EUR 71.051 million (previous year EUR 67.611 million).
Operating profit
In the first nine months of the current fiscal year Bertrandt's operating profit was EUR 39.822 million (previous year EUR 62.246 million), equal to a margin of 5.4 percent (previous year 8.6 percent). Net finance income was EUR -1.624 million (previous year EUR -1.262 million). Profit from ordinary activities in the period under review amounted EUR 38.198 million (previous year EUR 60.984 million). Based on a tax rate of 24.1 percent (previous year 29.9 percent), the Company generated post-tax earnings of EUR 27.818 million (previous year EUR 41.842 million).
_____ CHART 03
Financial position
Bertrandt's balance sheet as at 30 June 2017 was as follows: Total assets increased by EUR 1.589 million to EUR 764.903 million (EUR 763.314 million as at 30 September 2016). Non-current assets were EUR 298.604 million as at the balance sheet date (EUR 271.790 million as at 30 September 2016). Current assets amounted to EUR 466.299 million (EUR 491.524 million as at 30 September 2016). The Company's equity as at 30 June 2017 was EUR 359.540 million (EUR 357.936 million as at 30 September 2016). Current liabilities decreased to EUR 155.580 million (EUR 167.594 million as at 30 September 2016). With an equity ratio of 47.0 percent (46.9 percent as at 30 September 2016), Bertrandt remains one of the solid companies in the automotive sector.
_____ CHART 04
Bertrandt's cash flow from operating activities in the period under review was EUR 10.589 million (previous year EUR 47.232 million) as a result of the operating profit and the temporarily increased funds tied up in current assets. Net cash outflow from investing activities decreased year on year, amounting to EUR -59.937 million (previous year EUR -26.804 million). Free cash flow totaled EUR -16.215 million (previous year EUR -12.705 million).
_____ CHART 05
In the first nine months of the fiscal year 2016/2017 the Company made the necessary investments in buildings and technical equipment, spending EUR 28.979 million (previous year EUR 63.065 million). Bertrandt continues its focus on building up and expanding its infrastructure, thus continually optimising its range of services.
_____ CHART 06
_____ CHART 03
The operating profit was influendced by ongoing temporary fluctuations in the demand for capacity and continuing price pressure.
Operating profit (Q1–Q3)
_____ CHART 07
Compared to the previous
year the workforce expanded by 297.
Human resources
In the period under review the Bertrandt Group continued its policy of building up staff. As of 30 June 2017 the number of employees had risen by 54 compared to 30 September 2016. At the end of the first nine months of fiscal 2016/2017 the Group had 12,966 employees (12,912 employees as at 30 September 2016). This is equal to an increase of 297 on the same period last year (12,669 employees as at 30 June 2016). The latest information on human resources management can be found in the "Careers" section of Bertrandt's website at www. bertrandt.com.
_____ CHART 07
Risk report
As an engineering service provider operating on an international scale, the Bertrandt Group is exposed to a wide variety of risks. The pertinent facts were comprehensively reported in the fiscal 2015/2016 annual report. The developments already anticipated there for fiscal 2016/2017 reflects numerous developments, the results of which cannot be wholly predicted at the present juncture.
OEMs and system suppliers alike are redoubling their efforts to develop electromobility applications, in line with the strategic change currently taking place in the field of drive technologies. These technological developments are decisive for our customers' future market position and have a long-term impact on their business processes and the allocation of their engineering budgets. In addition, the ongoing consolidation among OEMs also affects current and announced projects because responsibilities in the different corporate units are undergoing a restructuring process. The increasing price pressure is felt, too.
A new aspect is added to the picture as the ultimate outcome of the pending antitrust investigations affecting some OEMs cannot be predicted.
employees worked for Bertrandt on
the reporting date.
It is also difficult to forecast ongoing geopolitical developments, for example the progress of the Brexit negotiations and the economic repercussions of policies of the present government in the United States. Both countries are important production and sales markets for our customers, and trade barriers, if they are erected, could adversely affect their business performance.
Bertrandt is closely observing these developments. The risks identified in the fiscal 2015/2016 annual report have partly materialised for Bertrandt in the first nine months of fiscal 2016/2017, with an impact on revenue and earnings performance. Management anticipates that these factors will also have a bearing on the fourth quarter of the current fiscal year. Accordingly, the short-term outlook for the current financial year has been adjusted to account for the temporarily prevailing economic environment as has already been communicated in Bertrandt's Ad hoc disclosure of 10 May 2017. The medium-term prospects of the core industries of the Bertrandt Group and the technology trends on which they depend still offer potential for the Company. Its broad strategic focus and solid financial position will provide a firm financial foundation for Bertrandt's business performance also in the future.
Potentials
The major influencing factors, i.e. the increasing variety of models and variants, environmentally friendly individual mobility and connected and automated driving, are still relevant. Further growth opportunities are provided by Industry 4.0. Bertrandt is therefore confident that there is potential for the Company to continue to secure and enhance its market position as an engineering service provider and technology group in the years to come. This is also reflected in actual and planned capital expenditure on expertise, infrastructure and technical equipment.
Forecast and outlook
According to the experts of the German Institute for Economic Research (DIW) global economic output is likely to rise by 3.6 percent this year and by an even higher rate next year. The main drivers for this development are still the decreasing unemployment rate in the industrial nations and higher private consumption. In addition, there is an increase in the investment activities of companies in the United States and Europe. In Germany, production has been increasing for the fourth consecutive year, a trend which is predicted to continue throughout 2017. For the current year the DIW expects a plus of 1.5 percent. This means that the growth rate will be lower than in the previous year, which, however, is merely the effect of fewer working days in the current year. The DIW institute also forecasts a sustained pace of growth of the German economy in the next year with a growth
rate of 1.7 percent.
For the year 2017 as a whole, new car sales are expected to increase worldwide over the previous year. For the year overall, the VDA experts anticipate the number of units sold in the US market to reach about 17.5 million, which would more or less correspond to the high level of the previous year. In China, the market is anticipated to grow further after two-digit growth last year, resulting in 24.1 million newly registered cars. With 15.4 million new cars, Europe is expected to slightly exceed the previous year's value.
The market trends that drive Bertrandt's performance, i.e. environmentally friendly individual mobility, safety, connected and automated driving as well as an ever greater variety of models and variants, continue undiminished. The VDA forecasts as well that by 2020 German OEMs will invest around EUR 40 billion in the development of alternative drive technologies alone especially e-mobility. During this period the German automotive manufacturers will more than treble their range
1.5
percent: the GDP growth rate for Germany in 2017 forecast by the DIW.
of e-cars – from the current 30 models to nearly
49 percent (previous year 45 percent). The industry players also continue to invest in sustainable solutions for connected and automated driving. The German automotive industry already accounts for 58 percent of worldwide patents on connected and automated driving. According to the VDA experts, OEMs and suppliers will invest another EUR 16 to 18 billion in digitisation technologies in the next three to four years. Owing to the ever greater diversity of drive technologies, the number of model derivatives is likely to grow as well. Market research institute Frost & Sullivan anticipates the number of globally available passenger car models to further increase over the next five years.
In the field of aircraft construction for civil aviation long-term prospects are equally positive. A recent long-term forecast by Boeing group anticipates worldwide demand for new aircraft for civil aviation rising to up to 41,030 units between 2016 and 2035. This is equal to a present market value of almost EUR 6.1 trillion. Airbus expects a slightly lower volume of new aircraft demand in its forecast for the same period and predicts 33,070 new units by 2035. According to Airbus, the market value corresponds to some EUR 4.6 trillion.
Bertrandt's key industries apart from the mobility sector, i.e. the energy, medical technology, electrical engineering as well as machinery and plant engineering sectors, are benefitting from the thriving global economy. The German Engineering Federation (VDMA), for example, raised its growth forecast in June 2017 from one to three percent real growth. The German Electrical and Electronic Manufacturers Association (ZVEI) expects its industry to grow four percent globally. Especially in the field of medical engineering, the ZVEI anticipates global market growth of six percent for 2017 and 2018. For the energy engineering industry, the ZVEI forecasts global market growth of three percent in 2017, to increase to four percent in the
100 models. Internationally, German carmakers are therefore leading global providers of electromobility solutions, strongly expanding their European market share of newly registered electric vehicles, which in the first five months of this year rose to 40
coming year.
Assuming that underlying economic conditions do not deteriorate, that OEMs make sustained investments in research and development for new technologies and models, engineering work continues to be contracted out and qualified human resources are available, Bertrandt expects its business to develop positively in fiscal 2016/2017. The Management Board expects an increase in revenues of up to EUR 30 million over the previous year. According to today's assessment, operating profit relative to revenues will be between six and eight percent.
The market continues to offer business opportunities in 2017. As a result, Bertrandt will continue to focus its investment activities in building up and expanding its expertise, infrastructure and technical equipment with the aim of continually optimising its range of services across the different geographical regions. However, the Company expects a lower volume of capital spending in fiscal 2016/2017 than in the previous year. A positive cash flow from operating activities is therefore anticipated for the year as a whole, which will, however, shrink by a corresponding amount compared to fiscal 2015/2016 since no significant positive or negative special effects of the kind that occurred in fiscal 2014/2015 and 2015/2016 are expected.
However, the most important opportunities are offed by the current technology trends. Against this backdrop, the Management Board considers a medium-term annual revenue growth of EUR 20 to 50 million and an operating profit relative to revenues of between seven and nine percent as realistic.
EUR billion will German OEMs invest in the development of alternative drive technologies according to the VDA.
The Bertrandt share
The DAX started the third quarter of the fiscal year 2016/2017 on 3 April 2017 opening at 12,369 points and closing at 12,325 points as of the last day of trading. The SDAX started the period at 10,113 points and climbed to 10,847 points as of the end of the period. The Prime Automobile Performance Index oscillated between 1,469 and 1,563 points.
The Bertrandt share started the third quarter of the fiscal year 2016/2017 by opening in Xetra trading at EUR 91.50. On 31 May 2017 the share hit a low for the period under review of EUR 79.60. It reached its high for the period of EUR 98.41 on 9 May 2017 and closed at EUR 87.76 in Xetra trading on the last day of trading. The average daily trading volume in the third quarter of fiscal 2016/2017 was 39,499 shares. Analysts' ratings of the Bertrandt share and information on our Company can be found at www.bertrandt.com under Investor Relations.
EUR was the price at which the Bertrandt share closed in Xetra trading on 30 June 2017.
%
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
| Consolidated income statement and statement of comprehensive income |
|---|
| EUR million |
| 01/10 to 30/06 |
| 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 |
| Income from investments accounted for using the equity method |
| Interest income/expense |
| Attributable to minority interests |
| Other financial result |
| Net finance income |
| Profit from ordinary activities |
| Other taxes |
| Earnings after income 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 differences1 |
| Revaluation of pension obligations |
| Tax effects of revaluation of pension obligations |
| Other earnings after taxes |
Total comprehensive income – attributable to minority interest
– attributable to shareholders of Bertrandt AG
1Components of Other earnings after taxes which will be recycled in the Income statements of the future quarterly and annual reports.
| Q3 | Q3 | Q1–Q3 | Q1–Q3 |
|---|---|---|---|
| 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 |
| 237.541 | 243.119 | 734.767 | 727.911 |
| 0.519 | 0.159 | 0.921 | 0.414 |
| 238.060 | 243.278 | 735.688 | 728.325 |
| 1.623 | 3.416 | 6.451 | 10.141 |
| -26.352 | -23.970 | -77.957 | -72.502 |
| -177.371 | -172.624 | -528.006 | -514.059 |
| -8.502 | -7.702 | -25.303 | -22.048 |
| -23.251 | -22.358 | -71.051 | -67.611 |
| 4.207 | 20.040 | 39.822 | 62.246 |
| 0.063 | -0.004 | 0.316 | 0.015 |
| -1.069 | -0.665 | -3.033 | -1.618 |
| -0.011 | 0 | -0.080 | 0 |
| 0.211 | 0.084 | 1.173 | 0.341 |
| -0.806 | -0.585 | -1.624 | -1.262 |
| 3.401 | 19.455 | 38.198 | 60.984 |
| -0.404 | -0.504 | -1.522 | -1.273 |
| 2.997 | 18.951 | 36.676 | 59.711 |
| -0.158 | -5.968 | -8.858 | -17.869 |
| 2.839 | 12.983 | 27.818 | 41.842 |
| 0 | 0.012 | 0 | 0.054 |
| 2.839 | 12.971 | 27.818 | 41.788 |
| 10.091 | 10.091 | 10.091 | 10.091 |
| 0.28 | 1.28 | 2.76 | 4.14 |
| 2.839 | 12.983 | 27.818 | 41.842 |
| -0.637 | 0.010 | -0.367 | -0.338 |
| -0.295 | -0.010 | -0.884 | -0.030 |
| 0.088 | 0.003 | 0.265 | 0.009 |
| -844 | 0.003 | -986 | -359 |
| 1.995 | 12.986 | 26.832 | 41.483 |
| 0 | 0.012 | 0 | 0.054 |
| 1.995 | 12.974 | 26.832 | 41.429 |
_____ TABLE 09
BERTRANDT LOCATIONS WORLDWIDE.
CONSOLIDATED BALANCE SHEET
| Consolidated balance sheet | ||
|---|---|---|
| EUR million | ||
| 30/06/2017 | 30/09/2016 | |
| Assets | ||
| Intangible assets | 15.969 | 17.480 |
| Property, plant and equipment | 262.914 | 235.800 |
| Investment properties | 1.491 | 1.540 |
| Investments accounted for using the equity method | 5.393 | 5.077 |
| Other financial assets | 1.922 | 2.729 |
| Receivables and other assets | 7.561 | 6.691 |
| Deferred taxes | 3.354 | 2.473 |
| Non-current assets | 298.604 | 271.790 |
| Inventories | 1.161 | 0.889 |
| Future receivables from construction contracts | 141.992 | 114.130 |
| Receivables and other assets | 200.453 | 214.851 |
| Income tax assets | 5.396 | 1.833 |
| Cash and cash equivalents | 117.297 | 159.821 |
| Current assets | 466.299 | 491.524 |
| Total assets | 764.903 | 763.314 |
| Equity and liabilities | ||
| Issued capital | 10.143 | 10.143 |
| Capital reserve | 29.374 | 29.374 |
| Retained earnings and other comprehensive income | 278.039 | 279.025 |
| Consolidated distributable profit | 41.984 | 39.394 |
| Equity | 359.540 | 357.936 |
| Provisions | 12.520 | 16.927 |
| Borrowings | 216.373 | 199.701 |
| Other liabilities | 0.223 | 0.246 |
| Deferred taxes | 20.667 | 20.910 |
| Non-current liabilities | 249.783 | 237.784 |
| Tax provisions | 5.520 | 7.548 |
| Other provisions | 25.083 | 46.586 |
| Borrowings | 4.292 | 2.367 |
| Trade payables | 12.711 | 15.066 |
| Other liabilities | 107.974 | 96.027 |
| Current liabilities | 155.580 | 167.594 |
| Total equity and liabilities | 764.903 | 763.314 |
_____ TABLE 10
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
1Components of Other earnings after taxes which will be recycled in the Income statements of the future quarterly and annual reports.
_____ TABLE 11
| EUR million | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Issued capital |
Capital reserve |
Retained earnings and other comprehensive income |
Consoli dated distri butable profit |
Equity attribut able to share holders of Bertrandt AG |
Minority interests |
Total | ||||
| Non-dis tributed earnings |
Currency trans lation reserve |
Revalu ation of pension obliga tions |
Total | |||||||
| Value on 01/10/2016 | 10.143 | 29.374 | 282.737 | -1.096 | -2.616 | 279.025 | 39.394 | 357.936 | 0 | 357.936 |
| Earnings after income tax | 27.818 | 27.818 | 0 | 27.818 | ||||||
| Other earnings | -0.3671 | -0.619 | -0.986 | -0.986 | -0.986 | |||||
| Total comprehensive income | -0.367 | -0.619 | -0.986 | 27.818 | 26.832 | 0 | 26.832 | |||
| Dividend payment | -25.229 | -25.229 | -25.229 | |||||||
| Value on 30/06/2017 | 10.143 | 29.374 | 282.737 | -1.463 | -3.235 | 278.039 | 41.983 | 359.539 | 0 | 359.539 |
| Previous year | ||||||||||
| Value on 01/10/2015 | 10.143 | 28.595 | 249.144 | -0.554 | -1.791 | 246.799 | 34.083 | 319.620 | 0.686 | 320.306 |
| Earnings after income tax | 41.788 | 41.788 | 0.054 | 41.842 | ||||||
| Other earnings | -0.3381 | -0.021 | -0.359 | -0.359 | -0.359 | |||||
| Total comprehensive income | -0.338 | -0.021 | -0.359 | 41.788 | 41.429 | 0.054 | 41.483 | |||
| Dividend payment | -24.704 | -24.704 | -24.704 | |||||||
| Changes in treasury shares | 0.779 | 0.779 | 0.779 | |||||||
| Value on 30/06/2016 | 10.143 | 29.374 | 249.144 | -0.892 | -1.812 | 246.440 | 51.167 | 337.124 | 0.740 | 337.864 |
CONSOLIDATED CASH FLOW STATEMENT
Net profit for the period (including minority interests) before exceptionals Income taxes Interest income/expense Other net financial result Income from investments accounted for using the equity method Depreciation of non-current assets Increase/decrease in provisions Other non-cash income/expense Profit/loss from disposal of non-current assets Increase/decrease in inventories, future receivables from construction contracts, receivables and other assets as well as other assets not assigned to investing or financing activities Increase/decrease in trade payables and other liabilities not assigned to investing or financing activities Income tax received/paid Interest paid Interest received Cash flows from operating activities (1.–14.) Payments received from disposal of property, plant and equipment Payments received from the disposal of financial assets Payments made for capital expenditure on property, plant and equipment Payments made for investments in intangible assets Payments made for investments in financial assets Payments made to acquire consolidated companies and other businesses Cash flows from investing activities (16.–21.) Payment received from the sale of treasury shares Payments made to shareholders and minority shareholders Payments received from issue of debt instruments and raising of loans Payments made for discharging debt instruments and repaying loans Cash flows from financing activities (23.–26.) Changes in cash and cash equivalents (15. + 22. + 27.) Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (28.–30.) 01/10 to 30/06 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. EUR million Q1–Q3 2015/2016 41.842 17.869 1.618 -0.341 -0.015 22.048 -26.874 -0.039 -0.218 10.370 0.599 -19.867 -0.071 0.311 47.232 1.673 1.455 -57.045 -4.701 -1.319 0 -59.937 0.779 -24.704 199.600 -39.642 136.033 123.328 -0.153 13.068 136.243 Consolidated cash flow statement Q1–Q3 2016/2017 27.818 8.858 3.113 -1.173 -0.316 25.303 -28.618 -1.117 -0.196 -12.936 9.680 -17.517 -3.718 1.408 10.589 1.122 1.053 -25.637 -3.056 -0.257 -0.029 -26.804 0 -25.229 0 -0.967 -26.196 -42.411 -0.113 159.821 117.297
_____ TABLE 12
_____ TABLE 13
| Total of all divisions | |||||||
|---|---|---|---|---|---|---|---|
| 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 |
| 449.159 | 431.265 | 160.959 | 160.230 | 161.735 | 152.853 | 771.853 | 744.348 |
| 16.591 | 6.485 | 12.437 | 6.981 | 8.058 | 2.971 | 37.086 | 16.437 |
| 432.568 | 424.780 | 148.522 | 153.249 | 153.677 | 149.882 | 734.767 | 727.911 |
| 62.246 | |||||||
| 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 | 2016/2017 | 2015/2016 |
| 250.120 | |||||||
| 7.001 | |||||||
| 142.078 | 140.905 | 44.901 | 50.260 | 50.562 | 51.954 | 237.541 | 243.119 |
| 20.040 | |||||||
| 17.642 147.604 5.526 1.090 |
Digital Engineering 33.263 144.349 3.444 9.608 |
9.788 50.986 6.085 1.003 |
Physical Engineering 13.867 52.796 2.536 5.149 |
12.392 53.404 2.842 2.114 |
Electrical Systems/ Electronics 15.116 52.975 1.021 5.283 |
39.822 251.994 14.453 4.207 |
| Shares owned by members of the Management and Supervisory Boards | ||
|---|---|---|
| number | ||
| Shares | Shares | |
| Balance at 30/06/2017 | Balance at 30/09/2016 | |
| Management Board | ||
| Dietmar Bichler | 400,000 | 400,000 |
| Hans-Gerd Claus | 0 | 0 |
| Michael Lücke | 0 | 0 |
| Markus Ruf | 0 | 0 |
| Supervisory Board | ||
| Dr Klaus Bleyer | 0 | 0 |
| Maximilian Wölfle | 0 | 0 |
| Horst Binnig | 0 | 0 |
| Prof. Dr-Ing. Wilfried Sihn | 0 | 0 |
| Stefanie Blumenauer | 0 | 0 |
| Astrid Fleischer | 98 | 98 |
| Total | 400,098 | 400,098 |
_____ TABLE 14
Options are not disclosed here as there is currently no option programme.
BASIC INFORMATION __________________________________________________________________________
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 2016 were prepared using the International Financial Reporting Standards (IFRS) effective at the reporting date and as endorsed by the European Union (EU).
The presented consolidated interim financial statements as at 30 June 2017 were prepared based on International Accounting Standard (IAS) 34 Interim Financial Reporting, in principle applying the same reporting methods as in the consolidated financial statements for fiscal 2015/2016. The provisions of Section 315a (1) German Commercial Code (HGB) 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 2016/2017, 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 2015/2016. The Annual Report is also accessible on the internet at www.bertrandt.com.
These interim consolidated financial statements were 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 2016/2017
The following table sets out the International Financial Reporting Standards and Interpretations that are subject to mandatory application as of fiscal 2016/2017.
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 to some degree approved by the EU but they were not yet mandatory in fiscal 2016/2017. Bertrandt will apply them for the accounting period for which they become mandatory.
CONDENSED CONSOLIDATED NOTES
| Standard/ Interpretation |
Compulsory application1 |
Expected effects | |
|---|---|---|---|
| IFRS 22 | Classification and Measurement of Share-based Payment Transactions | 01/01/2018 | None |
| IFRS 42 | Amendments to IFRS 4: Insurance Contracts – Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts |
01/01/2018 | Currently under examination |
| IFRS 9 | Financial Instruments | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 10 and IAS 283 | Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture |
not specified | None |
| IFRS 154 | Revenue from Contracts with Customers | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 152,4 | Amendments to IFRS 15 | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 162 | Leasing | 01/01/2019 | Lessee is required to recognise a right-of-use asset and a lease liability in the balance sheet for all leases. More detailed disclosures in the Notes |
| IFRS 172 | Insurance Contracts | 01/01/2021 | Currently under examination |
| IAS 72 | Amendments to IAS 7: Statement of Cash Flows – Disclosure Initiative | 01/01/2017 | None |
| IAS 122 | Amendments to IAS 12: Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses |
01/01/2017 | None |
| IAS 402 | Amendments to IAS 40: Transfers of Investment Property | 01/01/2018 | Currently under examination |
| Improvements of IFRS | Adoption of Annual Improvements to IFRS Cycle 2014-2016 | 01/01/2017/ 01/01/2018 |
Single-case audit |
| IFRIC 222 | IFRIC Interpretation 22: Foreign Currency Transactions and Advance Considerations | 01/01/2018 | Currently under examination |
| IFRIC 232 | IFRIC Interpretation 23: Uncertainty over Income Tax Treatments | 01/01/2019 | Currently under examination |
| Standard/ Interpretation |
Compulsory application1 |
Expected effects | |
|---|---|---|---|
| IFRS 22 | Classification and Measurement of Share-based Payment Transactions | 01/01/2018 | None |
| IFRS 42 | Amendments to IFRS 4: Insurance Contracts – Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts |
01/01/2018 | Currently under examination |
| IFRS 9 | Financial Instruments | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 10 and IAS 283 | Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture |
not specified | None |
| IFRS 154 | Revenue from Contracts with Customers | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 152,4 | Amendments to IFRS 15 | 01/01/2018 | No substantial effects, more detailed disclosures in the Notes |
| IFRS 162 | Leasing | 01/01/2019 | Lessee is required to recognise a right-of-use asset and a lease liability in the balance sheet for all leases. More detailed disclosures in the Notes |
| IFRS 172 | Insurance Contracts | 01/01/2021 | Currently under examination |
| IAS 72 | Amendments to IAS 7: Statement of Cash Flows – Disclosure Initiative | 01/01/2017 | None |
| IAS 122 | Amendments to IAS 12: Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses |
01/01/2017 | None |
| IAS 402 | Amendments to IAS 40: Transfers of Investment Property | 01/01/2018 | Currently under examination |
| Improvements of IFRS | Adoption of Annual Improvements to IFRS Cycle 2014-2016 | 01/01/2017/ 01/01/2018 |
Single-case audit |
| IFRIC 222 | IFRIC Interpretation 22: Foreign Currency Transactions and Advance Considerations | 01/01/2018 | Currently under examination |
| IFRIC 232 | IFRIC Interpretation 23: Uncertainty over Income Tax Treatments | 01/01/2019 | Currently under examination |
1Fiscal years beginning on or after the specified date.
2Not yet endorsed by the EU.
3Postponed to a date to be determined by the IASB.
4A group-wide, centrally managed project was set up in early 2016; a final evaluation is planned for the upcoming financial year.
_____ TABLE 16
| Standard/ Interpretation |
Compulsory application1 |
Expected effects |
|
|---|---|---|---|
| IFRS 11 | Amendments to IFRS 11: Joint Arrangements – Accounting for Acquisitions of Interests in Joint Operations |
01/01/2016 | None |
| IFRS 10, IFRS 12 and IAS 28 |
Amendments to IFRS 10, IFRS 12 and IAS 28 – Investment Entities: Applying the Consolidation Exception |
01/01/2016 | None |
| IAS 1 | Amendments to IAS 1: Presentation of Financial Statements – Disclosure Initiative | 01/01/2016 | None |
| IAS 16 and IAS 38 | Amendments to IAS 16 and IAS 38 – Clarification of Acceptable Methods of Depreciation and Amortisation |
01/01/2016 | None |
| IAS 16 and IAS 41 | Amendments to IAS 16 and IAS 41 – Agriculture: Bearer Plants | 01/01/2016 | None |
| IAS 27 | Amendments to IAS 27: Separate Financial Statements – Equity Method in Separate Financial Statements |
01/01/2016 | None |
| Improvements of IFRS | Adoption of Annual Improvements to IFRS Cycle 2012-2014 | 01/01/2016 | Single-case audit |
1Financial years beginning on or after the specified date.
| _____ TABLE 15 |
|---|
| ---------------- |
GROUP OF CONSOLIDATED COMPANIES ______________________________________________________
The group of consolidated companies includes all operating subsidiaries under the legal and constructive control of Bertrandt AG. This specifically entails the following German companies: Bertrandt Ingenieurbüro GmbHs in Gaimersheim, Ginsheim-Gustavsburg, Hamburg, Cologne, Munich, Neckarsulm and Tappenbeck as well as Bertrandt Fahrerprobung Süd GmbH in Nufringen, Bertrandt Projektgesellschaft mbH, Bertrandt Services GmbH, Bertrandt Technikum GmbH in Ehningen and Bertrandt Technologie GmbHs in Immendingen, Mönsheim and Sassenburg, Bertrandt Ehningen GmbH in Ehningen, Bertrandt GmbH in Hamburg, Bertrandt Verwaltungs GmbH in Mönsheim, Bertrandt Automotive GmbH & Co. KG, Bertrandt Immobilien GmbH & Co. KG and Bertrandt Grundbesitz GmbH & Co. KG, each located in Pullach i. Isartal, as well as Bertrandt Energie GmbH in Mönsheim, Bertrandt Munich GmbH in Munich and Bertrandt Tappenbeck GmbH in Tappenbeck. In addition, Fariba GmbH & Co. KG (formerly Appalusa Grundstücksverwaltungsgesellschaft mbH) in Mainz and the entities newly incorporated in the year under review, Bertrandt Beteiligungen GmbH and Bertrandt Solutions GmbH, each located in Ehningen, as well as Bertrandt Grundstücks GmbH in Nufringen, and b.professional GmbH in Mannheim were included for the first time in the consolidated financial statements.
The consolidated companies additionally include the foreign entities Bertrandt Engineering Shanghai Co., Ltd. in Shanghai, Bertrandt Engineering Technologies Romania SRL in Sibiu, Bertrandt France S.A., Bertrandt S.A.S. each located in Paris/Vélizy-Villacoublay, Bertrandt Otomotiv Mühendislik Hizmetleri Ticaret Limited Sirketi in Istanbul, Bertrandt Technologie GmbH in Steyr, Bertrandt UK Limited in Dunton, and Bertrandt US Inc. in Detroit.
Associates, i.e. entities which are not controlled by Bertrandt but over which the Company has significant influence are accounted for in the interim financial statements using the equity method. The following companies are associates: aucip. automotive cluster investment platform GmbH & Co. KG, Bertrandt Entwicklungen AG & Co. OHG, each located in Pullach i. Isartal, as well as indirect investments in aucip. automotive cluster investment platform Beteiligungs GmbH, MOLLIS automotive GmbH, NAMENU tool GmbH, and, for the first time MCIP tool GmbH, all of them located in Pullach i. Isartal. In addition, Bertrandt Campus GmbH, Ehningen and, for the first time, the indirect investment in Bertrandt Campus Grundbesitz GmbH, Ehningen, two joint ventures of which Bertrandt has joint control, are also accounted for in the consolidated financial statements under the equity method.
_____ TABLE 17
| Currency translation | ||
|---|---|---|
| relative to one euro | ||
| 30/06/2017 | ||
| China | CNY | 7.7247 |
| United Kingdom | GBP | 0.8787 |
| Romania | RON | 4.5539 |
| Turkey | TRY | 4.0098 |
| Hungary | HUF | 309.3000 |
| United States | USD | 1.1403 |
| Average rate on balance sheet date |
Average rate Q1–Q3 | ||
|---|---|---|---|
| 30/06/2016 | 2016/2017 | 2015/2016 | |
| 7.7247 | 7.3893 | 7.4114 | 7.1890 |
| 0.8787 | 0.8262 | 0.8621 | 0.7595 |
| 4.5539 | 4.5210 | 4.5247 | 4.4828 |
| 4.0098 | 3.2129 | 3.8036 | 3.2346 |
| 309.3000 | 316.9000 | 309.4680 | 312.6000 |
| 1.1403 | 1.1143 | 1.0814 | 1.1092 |
FOREIGN CURRENCY TRANSLATION __________________________________________________________
The interim consolidated financial statements of subsidiaries using a functional currency other than the euro are translated according to IAS 21. The subsidiaries carry out their business independently for financial, commercial and organisational purposes. The functional currency is therefore identical to the currency of the country in which they are based.
Accordingly, for the interim financial statements these companies' assets and liabilities were translated at the mean closing rate at the date of the statement of financial position, and income and expenses were translated at the average exchange rate for the period. All resulting exchange differences including differences resulting from the translation of amounts brought forward from the previous year are recognised directly in equity.
Foreign currency transactions are recorded by translating the foreign currency amount into the functional currency amount at the exchange rate prevailing on the date of the transaction. Gains and losses arising from the settlement of such transactions as well as from the translation at the reporting date of monetary assets and liabilities held in foreign currencies are recognised in profit or loss.
The parities of the key currencies relative to one euro were as follows:
RELATED PARTY DISCLOSURES _______________________________________________________________
On 2 July 2014 Dr. Ing. h.c. F. Porsche AG, Stuttgart, increased its shareholding in Bertrandt AG by nearly four percentage points. After the share purchase, Volkswagen now indirectly holds around 29 percent of voting shares in Bertrandt. As in the past it is not the intention of Volkswagen to exercise influence on the Supervisory Board or the Management Board. From the date of the purchase of the shares, Bertrandt AG will be accounted for as an associate in the consolidated financial statements of the Volkswagen group under the equity method. Accordingly, the Volkswagen group has to be classified as a related party pursuant to IAS 24. All supplier relationships between Bertrandt AG and the Volkswagen group were based on arm's length prices. The revenues arising from transactions with all Volkswagen group companies amounted to EUR 256.046 million in the period under review (previous year EUR 290.744 million). As of the balance sheet date, receivables amounted to EUR 68.566 million (previous year EUR 60.005 million).
Earnings per share (EUR) – diluted/basic
| Consolidated income statement |
|---|
| EUR million |
| 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 of Bertrandt AG |
| Number of shares (million) – diluted/basic, average weighting |
| Q3 16/17 | Q2 16/17 | Q1 16/17 | Q4 15/16 | Q3 15/16 |
|---|---|---|---|---|
| 237.541 | 251.389 | 245.837 | 264.110 | 243.119 |
| 0.519 | 0.229 | 0.173 | 0.258 | 0.159 |
| 238.060 | 251.618 | 246.010 | 264.368 | 243.278 |
| 1.623 | 2.339 | 2.489 | 1.330 | 3.416 |
| -26.352 | -25.465 | -26.140 | -25.595 | -23.970 |
| -177.371 | -179.714 | -170.921 | -181.622 | -172.624 |
| -8.502 | -8.435 | -8.366 | -7.677 | -7.702 |
| -23.251 | -22.351 | -25.449 | -20.185 | -22.358 |
| 4.207 | 17.992 | 17.623 | 30.619 | 20.040 |
| -0.806 | -0.249 | -0.569 | -0.116 | -0.585 |
| 3.401 | 17.743 | 17.054 | 30.503 | 19.455 |
| -0.404 | -0.638 | -0.480 | -0.401 | -0.504 |
| 2.997 | 17.105 | 16.574 | 30.102 | 18.951 |
| -0.158 | -3.726 | -4.974 | -8.336 | -5.968 |
| 2.839 | 13.379 | 11.600 | 21.766 | 12.983 |
| 0 | 0 | 0 | 0 | 0.012 |
| 2.839 | 13.379 | 11.600 | 21.766 | 12.971 |
| 10.091 | 10.091 | 10.091 | 10.091 | 10.091 |
| 0.28 | 1.33 | 1.15 | 2.16 | 1.28 |
QUARTERLY SURVEY
| _____ TABLE 18 | |||
|---|---|---|---|
FAIR VALUE DISCLOSURES ____________________________________________________________________
The principles and methods used for fair value measurement have remained unchanged compared to fiscal 2015/2016.
Because of the short maturities of the Company's financial assets and financial liabilities, it is assumed that their fair value is equal to their carrying amount. The fair values of the non-current financial liabilities amount to EUR 227.462 million (previous year EUR 210.238 million) on account of the movement in interest rates in the reporting period up to 30 June 2017.
The financial assets and financial liabilities at fair value through profit or loss generally comprise derivatives to hedge foreign exchange and interest risks.
The derivatives' fair values are determined with generally accepted methods of financial mathematics, using mid-market pricing. All derivatives with a positive fair value are disclosed as derivative assets, while all derivatives with a negative fair value are disclosed as derivative liabilities.
As at 30 June 2017 the fair value of all balance sheet items valued at their fair value was EUR 0 million (EUR 0 million as at 30 September 2016). In the period under review, no foreign exchange forward contract or interest rate hedging contract was outstanding.
The fair value hierarchy established by IFRS 13 defines three levels of inputs to valuation techniques which depend on the availability of observable market prices in an active market. Level one input is input available for financial instruments that are measured at quoted prices in active markets for identical assets or liabilities. Financial instruments that are measured using Level two inputs are measured on the basis of inputs other than quoted prices included within Level one, which are observable either directly or indirectly. Level three input refers to market data for the measurement of financial instruments that are unobservable. Interest rate derivatives and foreign exchange forward contracts are categorised as Level two, other derivatives as Level three. Non-current financial liabilities are categorised as Level two. As in the previous year, there were no transfers between the three levels of the fair value hierarchy. A sensitivity analysis is performed every year, analysing and evaluating internal and external information and conditions for their probability of occurrence and the resulting financial burdens. As in the previous year, the sensitivity analysis carried out in the first quarter of fiscal 2015/2016 for derivatives measured according to Level three of the fair value hierarchy did not lead to any change in the carrying amount.
MATERIAL EVENTS AFTER THE REPORTING PERIOD _________________________________________
There were no material events after the reporting period of 1 October 2016 to 30 June 2017.
GERMAN CORPORATE GOVERNANCE CODE __________________________________________________
The declarations of compliance with the German Corporate Governance Code pursuant to Section 161 of the German Stock Corporation Act (AktG) by the Management and Supervisory Boards of Bertrandt AG are accessible on the internet at www.bertrandt.com.
ROADSHOWS AND CONFERENCES
Annual report 2016/2017 Annual press and analysts' conference 14 December 2017
Annual General Meeting 21 February 2018 10:30 City Hall Sindelfingen
Report on the 1st quarter 2017/2018 February 2018
FINANCIAL CALENDAR
Published and edited by Bertrandt AG Birkensee 1, 71139 Ehningen
Germany Telephone +49 7034 656-0 Telefax +49 7034 656-4100 www.bertrandt.com [email protected]
HRB 245259 Amtsgericht Stuttgart
Contact Dr Markus Götzl Investor Relations Telephone +49 7034 656-4201 Telefax +49 7034 656-4488 [email protected]
Design, layout and production SAHARA Werbeagentur, Stuttgart www.sahara.de
Photos Andreas Körner, Stuttgart
CREDITS
ROADSHOWS AND
CONFERENCES
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 incorrent, the actual results could deviate substantially from or implicitly from the expressed results specified in these statements. We have neither the intetion 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.