Quarterly Report • Sep 11, 2014
Quarterly Report
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January to June 2014
The Interim Consolidated Report of BLG LOGISTICS meets the requirements for a semiannual interim report in accordance with the provisions of the Securities Trading Act (WpHG) and encompasses a condensed interim consolidated financial statement, an Interim Consolidated Management Report and a responsibility statement of the Board of Management in accordance with Section 37w of the Securities Trading Act.
The Interim Consolidated Report should be read together with our 2013 Annual Report. The latter contains a comprehensive description of our business activities.
BLG LOGISTICS is headed by BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– (BLG AG) and BLG LOGISTICS GROUP AG & Co. KG, Bremen (BLG KG), two companies that are closely affiliated legally, economically and organizationally. These two enterprises thus prepare the condensed interim consolidated financial statement as a single parent company.
Although no economic changes or changes in the internal control of the Group have taken place, the elimination of proportionate consolidation for joint ventures has considerable impacts on Group accounting. In this context we refer to our statements in the condensed notes to the interim consolidated financial statement on page 24 ff.
After the first six months of the current stock market year the capital market continues to be in good shape in spite of global trouble spots, based on the constantly increasing dynamics of world economic development. The situation in Ukraine has stabilized somewhat, data on economic activity in China have diminished investors' fears of a substantial economic decline and the European Parliament elections ended in victory for advocates of the EU.
The majority of the major international indices in Europe, the US and Asia thus showed a gratifying development. In this generally positive, but also volatile environment the German stock index (DAX) rose by 4.6 percent, after starting off the year at 9,400 points, and closed at 9,833 points on June 30.
The BLG share developed very positively in the first six months of the 2014 financial year. After the first trading day of the reporting year opened at a market price of EUR 9.32, which at the same time marked the low point up to now, the share price has displayed a constantly upward movement. This led to attainment of the maximum level at EUR 12.91 on May 23. The share closed on the last trading day at a price of EUR 11.69 and thus recorded growth in value of over 20 percent after the first six months of the current financial year.
1 All market prices indicated as average on the listed stock markets.
+ 23.4% growth in value
| Key figures for BLG share | 01-01 – 2014-06-30 |
01-01 – 2013-06-30 |
|
|---|---|---|---|
| Stock market price at end of 1st six months 1 | EUR | 11.69 | 8.64 |
| Highest price1 | EUR | 12.91 | 9.61 |
| Lowest price1 | EUR | 9.32 | 8.33 |
| Number of shares | in million | 3.84 | 3.84 |
| Market capitalization | million EUR | 44.9 | 33.2 |
1 All market prices indicated as average on listed stock markets.
Our goal for the 2014 financial year is to continue the long-term dividend policy with a dividend of EUR 0.40 per share.
The share capital of BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– comes to EUR 9,984,000.00 and is divided into 3,840,000 registered shares with voting rights. The approval of the company is required for transfer of the shares in accordance with Section 5 of the Memorandum and Articles of Association.
The Free Hanseatic City of Bremen (municipality of Bremen) is the main shareholder of our company with 50.4 percent. Other major institutional investors are Bremer Landesbank Kreditanstalt Oldenburg – Girozentrale – and the financial holding company of Sparkasse in Bremen. The free float amounts to 24.4 percent, corresponding to around 936,000 shares. The proportion of the latter held by institutional investors is about 2 percent while the remaining 22 percent are held by private shareholders.
In the first six months of the current financial year our investor relations work again focused on the goal of providing comprehensive information on corporate development and our investor relations activities. For this purpose we devoted particular attention to a dialogue with institutional investors, analysts and private shareholders. However, we also offer all other interested parties information on our company and at the same time endeavor to maintain maximum transparency for everyone. Our IR calendar as well as the financial reports and all information concerning our share can be viewed on our website at www.ir.blg.de.
Shareholder structure as of June 30, 2014
Basic features of the group Report on economic position
The legal corporate structure, the business model and the organizational structure as well as the legal and economic influencing factors have not fundamentally changed in the first six months of 2014 in comparison to the descriptions in the 2013 Interim Consolidated Management Report.
The dynamics of world production increased somewhat in the first six months of 2014. The impetus primarily came from development in the advanced economies. The pace of recovery in the USA, Great Britain and Japan accelerated, for instance, while the euro zone even managed to leave the recession behind that had lasted nearly two years. The newly industrialized countries continued to record higher growth rates than the advanced economies, though the economic dynamics there remained relatively weak in a historical comparison and have even slackened in some places since summer 2013. All in all, experts reckon with a rise in world production of 2.9 percent in 2014 and 3.3 percent in the following year.
There has also been a persistent upswing in the German economy up to now. This development continues to be based on domestic economic activity. Economic experts point out, however, that although the major economic indicators remained at a high level in the past months, a further rise did not materialize. Accordingly the most recent declines in the ifo business climate index can primarily be attributed to greater uncertainty among German industrial enterprises in connection with the Russian-Ukrainian conflict. Nevertheless, growth of 2.0 percent in the real gross domestic product is expected this year and 2.2 percent growth in the coming year.
Thus an accelerated increase in investments in new equipment and the necessity of replacement purchases and capacity expansion investments due to high utilization of production capacities are expected. In addition, economic experts presume that private consumption will rise at the rate of the increasing real income and exports will grow at an accelerated pace due to the recovery in the euro zone and improvement in the world economy.
As a major link between producers, retail trade and consumers, the logistics sector performs production-related services. Aside from conventional freight forwarding business, the focal points of the sector include the performance of logistics services connected with delivery, production and distribution of goods.
The sector profits from the rising demand for logistics services, which is additionally boosted by constant globalization of the economy and booming trade via the Internet as well as the high return rate in business-to-customer transactions. To this extent, the logistics sector, like BLG LOGISTICS' business model, depends considerably on the economic trend.
2 Bundesvereinigung Logistik (BVL) e. V.: www.bvl.de, August 5, 2014
1 ifo Institut (ed.): "ifo Konjunkturprognose 2014/2015: Deutscher Aufschwung setzt sich fort", June 26, 2014, www.ifo.de
In Germany especially, challenges exist in the logistics sector particularly in connection with the demographic development and thus also in conjunction with the availability of well trained workers, necessary infrastructure investments, new technologies, the dynamics of the world economy and globalization, expansion of services as well as the impacts of the energy transition. Moreover, a pronounced readiness to invest and innovative strength are expected of logistics companies in the framework of logistics outsourcing. Investments focus, for instance, on cargo handling, distribution and order picking centers in favorable locations for transportation.
Since contracts with customers are usually only for a few years, the required space and cargo handling equipment are frequently rented or leased in order to avoid long-term capital tie-up and increase flexibility. Because of increasing customer demands, the use of information and communication technologies has expanded significantly in the logistics sector to ensure a continuous flow of information along the process chains.
Viewed in world market dimensions, the current conditional framework for enterprises is characterized by volatile activity. Both rising customer expectations and high cost pressure based on global markets lead to dependencies and fluctuations in demand with respect to product ranges and trade volumes. Increasingly rapid market and technological developments boost these effects.
After the first six months of 2014 experts in industry and trade look confidently at the value chains – and boldly into the future – in spite of the persistent national crisis in Ukraine, the uncertain impacts of the sanctions against Russia, the prevailing uncertainty in Germany regarding the development of energy costs and the faltering negotiations between the EU and the US concerning a possible transatlantic free trade zone. After all, logistics experts point out that incoming orders, capacity utilization, staff deployment and investments do not deviate significantly from the figures in the positive previous quarter.
After the first six months of the current financial year BLG LOGISTICS sales came to EUR 431 million (previous year: EUR 432 million). Despite a positive conditional framework, the operating result (EBIT) at EUR 13.1 million (previous year(adjusted)3 : EUR 13.4 million) showed a slightly downward development due to persistently fierce price competition coupled at the same time with cost increases. Based on positive planning for the second six months, consistent process optimization and the targeted exploitation of savings potential, we continue to view the economic situation of BLG LOGISTICS as stable.
3 In the entire Interim Consolidated Report the adjustment of the figures for the previous year is due to the application of the amended accounting principles stipulated by IFRS 11. Accordingly joint ventures that were previously included via proportionate consolidation now have to be reported according to the equity method. In this connection we refer to the statements in the condensed notes to the consolidated financial statement on page 24 ff.
| 01-01 – | Change | ||||
|---|---|---|---|---|---|
| 01-01 – | 2013-06-30 | absolute | percen | ||
| Sales according to segments | 2014-06-30 | (adjusted) | tage | ||
| AUTOMOBILE | million EUR | 225,380 | 218,338 | 7,042 | 3.2 |
| CONTRACT | million EUR | 207,895 | 216,321 | -8,426 | -3.9 |
| CONTAINER | million EUR | 139,110 | 129,514 | 9,596 | 7.4 |
| Total of segments subject | |||||
| to reporting requirements | million EUR | 572,385 | 564,173 | 8,212 | 1.5 |
| Reconciliation | million EUR | -141,216 | -131,943 | -9,273 | 7.0 |
| Group total | million EUR | 431,169 | 432,230 | -1,061 | -0.2 |
In the first six months of 2014 the sales of BLG LOGISTICS dropped slightly, by EUR 1.0 million, as compared to the comparable period in the previous year.
| 01-01 – | Change | ||||
|---|---|---|---|---|---|
| Key figures on earnings situation | 01-01 – 2014-06-30 |
2013-06-30 (adjusted) |
absolute tage |
percen | |
| Sales | million EUR | 431.2 | 432.2 | -1.0 | -0.2 |
| Return on sales | % | 3.0 | 3.1 | -0.1 | -2.0 |
| EBIT | million EUR | 13.1 | 13.4 | -0.3 | -2.2 |
| EBT | million EUR | 9.7 | 10.6 | -0.9 | -8.5 |
| Group net income for the period | million EUR | 7.9 | 7.6 | 0.3 | 3.9 |
| Earnings per share | EUR | 0.17 | 0.20 | 0.03 | -15.0 |
| 01-01 – | 01-01 – 2013-06-30 |
absolute | Change percen |
||
|---|---|---|---|---|---|
| EBIT according to segments | 2014-06-30 | (adjusted) | tage | ||
| AUTOMOBILE | million EUR | 6,428 | 6,324 | 104 | 1.6 |
| CONTRACT | million EUR | 228 | 7,733 | -7,505 | -97.1 |
| CONTAINER | million EUR | 18,462 | 11,439 | 7,023 | 61.4 |
| Total of segments subject | |||||
| to reporting requirements | million EUR | 25,118 | 25,496 | -378 | -1.5 |
| Reconciliation | million EUR | -12,067 | -12,127 | 60 | -0.5 |
| Group total | million EUR | 13,051 | 13,369 | -318 | -2.4 |
Because of the decline in earnings in the CONTRACT Division as well as rising margin pressure in all segments, the operating result (EBIT) of BLG LOGISTICS decreased slightly by EUR 0.3 million to EUR 13.1 million as compared to the previous year. The return on sales based on the EBIT thus came to 3.0 percent (previous year(adjusted): 3.1 percent) for the first six months of 2014.
Earnings before taxes (EBT) declined by EUR 0.9 million to EUR 9.7 million in the reporting period.
The financial result developed very positively in the first six months of the current financial year. The increase of EUR 3.8 million primarily results from the shareholding result, which is essentially due to the proportionate result in connection with the EUROGATE Group.
The Group net income rose slightly by EUR 0.3 million to EUR 7.9 million as compared to the same period in the previous year. The earnings per share came to EUR 0.17 after the first six months of 2014.
| Key figures | 01-01 – 2014-06-30 |
01-01 – 2013-06-30 (adjusted) |
absolute | Change percentage |
|
|---|---|---|---|---|---|
| Sales | million EUR | 225.4 | 218.3 | 7.1 | 3.3 |
| Return on sales | % | 2.9 | 2.9 | 0.0 | 0.0 |
| EBIT | million EUR | 6.4 | 6.3 | 0.1 | 1.6 |
| EBT | million EUR | 3.8 | 3.6 | 0.2 | 5.6 |
In the segments comprising seaport terminals, inland terminals, intermodal services and Eastern Europe the AUTO-MOBILE Division offers all services related to finished vehicle logistics, such as cargo handling, storage, technical services as well as freight forwarding and transport logistics via rail, road, inland and coastal shipping. This means the range of logistics services from the automobile manufacturers to the end customers is complete.
With a vehicle handling volume of 3.6 million units in the BLG LOGISTICS network the figure for the first six months of 2014 was over 3 percent above the vehicle volume handled in the same period of the previous year.
Division sales rose by EUR 7.1 million to EUR 225.4 million. Particularly parts of the seaport terminals and intermodal segments recorded growth.
The return on sales based on the operating result (EBIT) remained constant at 2.9 percent (previous year(adjusted): 2.9 percent) and thus continues at an unsatisfactory level.
The cargo handling volume at BLG's seaport terminals, especially in the passenger car segment, is at a constantly high level as a consequence of the undiminished high export activity of major clients.
In addition to the domestic seaport terminals in Bremerhaven, Cuxhaven and Hamburg as well as the foreign terminals in Gioia Tauro, Gdansk and St. Petersburg, the division also operates several inland terminals on the Rhine and Danube. Because of their more pronounced incorporation into the domestic new and used car market, the inland terminals depend to a substantially greater degree on the development of the automobile industry in Germany as compared to the seaport terminals.
In the inland terminals segment the positive trend of the past months continued. Due to a high value added related to technical work as well as a high capacity utilization of storage areas, a positive result was achieved at the Duisburg Auto Terminal. At the Kelheim location the first six months of 2014 were also characterized by high warehouse capacity utilization and a high real net output ratio from technical services.
Intermodal shipments represent a major part of the AUTOMOBILE Division network. Though the transport volume via truck and rail rose again over the previous year, the targeted volumes were not achieved because the European car market did not develop according to the forecasts.
In the Eastern Europe segment the impacts of the Russian-Ukrainian conflict are very noticeable after the dynamic growth of the previous years. The development of results is therefore substantially below target after the first six months of 2014.
The higher volume in the freight forwarding segment was translated into positive contributions to earnings. The activities of a newly established company in Croatia were launched as planned.
On the basis of the economic development in the first six months of 2014 in the AUTOMOBILE Division, earnings before taxes come to EUR 3.8 million. This means earnings improved slightly by EUR 0.2 million compared to the previous year.
| Key figures | 01-01 – 2014-06-30 |
01-01 – 2013-06-30 (adjusted) |
absolute | Change percentage |
|
|---|---|---|---|---|---|
| Sales | million EUR | 207.9 | 216.3 | -8.4 | -3.9 |
| Return on sales | % | 0.1 | 3.7 | -3.6 | -97.4 |
| EBIT | million EUR | 0.2 | 7.7 | -7.5 | -97.4 |
| EBT | million EUR | -2.0 | 6.2 | -8.2 | -132.3 |
The CONTRACT Division encompasses different logistics services in the Industrial Logistics (formerly Automotive), Retail Logistics and Seaport Logistics segments.
Sales after the first six months of the current financial year came to EUR 207.9 million (previous year: EUR 216.3 million). This decline results primarily from negative volume developments in individual segments.
In the Industrial Logistics segment the majority of existing business is developing as planned, also because of measures initiated for process and quality improvement. The results from overseas, however, remain greatly impaired by start-up losses of a deal that commenced in the USA in January.
The return on sales based on the operating result (EBIT) dropped therefore from 3.7 percent in the same period in the previous year to 0.1 percent.
Development in the Retail Logistics segment is moving as planned at nearly all locations. As far as existing business is concerned, the results at the Bremen location are influenced by the expected productivity losses due to construction work on the high-bay warehouse in Bremen for the online business of a key account. The planned productivity in new business in Butzbach improved significantly compared to the previous year and the targeted results were achieved there.
The Seaport Logistics segment remained considerably below target after the first six months of 2014. This is particularly attributable to weak economic development in the steel industry.
Against this backdrop, the earnings before taxes for the CONTRACT Division in the reporting period declined substantially with a loss of EUR 2.0 million (previous year: profit of EUR 6.2 million). Nevertheless, we expect to achieve the target figures for 2014.
| Key figures | 01-01 – 2014-06-30 |
01-01 – 2013-06-30 (adjusted) |
absolute | Change percentage |
|
|---|---|---|---|---|---|
| Sales | million EUR | 139.1 | 129.5 | 9.6 | 7.4 |
| Return on sales | % | 13.3 | 8.8 | 4.5 | 51.1 |
| EBIT | million EUR | 18.5 | 11.4 | 7.1 | 62.3 |
| EBT | million EUR | 16.4 | 10.3 | 6.1 | 59.2 |
The CONTAINER Division of the BLG Group is represented by half of the shares in the major joint venture EUROGATE GmbH & Co. KGaA, KG along with its participations. The latter operate container terminals – in some cases with partners – in Bremerhaven, Hamburg and Wilhelmshaven (all Germany) as well as Gioia Tauro, La Spezia, Salerno, Cagliari and Ravenna (all Italy), Lisbon (Portugal), Tangier (Morocco) and Ust-Luga (Russia). Furthermore, the EURO-GATE Group has a share in several inland terminals and railway transport companies.
This division is primarily active in container handling business on the European continent. The secondary services it offers include cargo-modal services, such as distribution and storage of goods, intermodal services like shipments of sea containers to and from the terminals as well as repair, warehousing and trading of containers, supplemented by technical services.
In the first six months of 2014 the CONTAINER Division recorded a significantly higher operating result (EBIT) of EUR 18.5 million (previous year(adjusted): EUR 11.4 million) with a rise in sales to EUR 139.1 million (previous year: EUR 129.5 million) in spite of persistent losses as expected from low capacity utilization at the Wilhelmshaven container terminal. The return on sales increased accordingly to 13.3 percent (previous year: 8.8 percent). The earnings before taxes in the reporting period came to EUR 16.4 million and thus rose by EUR 6.1 million.
Container handling at the container terminals of the EUROGATE Group in the first half of 2014 was significantly above the previous year's level. Overall the container terminals in Germany, Italy, Portugal, Morocco and Russia handled 7.3 million TEU (previous year: 6.9 million TEU).
While the cargo handling volumes of the companies in Germany developed positively (+4.0 percent) with a rise of 0.2 million TEU to 4.0 million TEU, total cargo handling at the Italian terminals recorded only slight growth (2.1 percent) over the previous year at 2.6 million TEU. In Portugal the cargo handling level of the previous year was not attained due to strikes. The cargo handling volume in Morocco recovered substantially in the reporting period and rose to 0.7 million TEU (previous year: 0.4 million TEU). In Russia, too, the cargo handling volumes showed a positive development.
| 2013-12-31 | Change | ||||
|---|---|---|---|---|---|
| Key figures on asset situation | 2014-06-30 | (adjusted) | absolute | percentage | |
| Balance sheet total | million EUR | 670.6 | 696.7 | -26.1 | -3.7 |
| Capitalization ratio | % | 44.5 | 43.7 | 0.8 | 1.8 |
| Working capital ratio | % | 77.5 | 96.7 | -19.2 | -19.9 |
| Equity | million EUR | 224.6 | 241.6 | -17.0 | -7.0 |
| Equity rate | % | 33.5 | 34.7 | -1.2 | -3.4 |
| Net indebtedness | million EUR | 259.0 | 282.3 | -23.3 | -8.3 |
The balance sheet total of BLG LOGISTICS as of June 30, 2014 (EUR 670.6 million) diminished slightly compared to the level as of December 31, 2013. This change is primarily accounted for by short-term assets. Particularly the change in other assets had an impact in this context.
The decline in other assets of EUR -53.2 million is essentially due to high leasing receivables, dividend payouts and the profit claims in the first six months of 2014.
A rise of EUR 17.6 million to EUR 483.2 million was recorded in long-term assets as of June 30, 2014.
The capitalization ratio increased slightly by 0.8 percentage points to 44.5 percent as compared to December 31, 2013 because of the lower balance sheet total.
We refer to the section on the financial situation with regard to the change in liquid funds.
The working capital ratio as the ratio of the short-term assets to the short-term liabilities deteriorated as of June 30, 2014 from 96.7 percent to 77.5 percent.
Equity declined by EUR 17.0 million to EUR 224.6 million in the first half of 2014. In the period under review capital appreciation from the Group operating result (EUR 7.9 million) and the equity-reducing dividend payouts (EUR 21.8 million) had a major impact. The other changes relate to the expenditures and income reported directly in equity (EUR -3.1 million), accounted for in particular by the revaluation of long-term personnel provisions at EUR -3.2 million. The development of equity is described in detail in the consolidated statement of changes in equity on page 19f.
The net indebtedness as of June 30, 2014 dropped by EUR 23.3 million to EUR 259.0 million, particularly due to the decline in short-term financial liabilities as well as repayment of long-term loans. In this connection we refer to the disclosures in the financial situation.
| 2014-06-30 | 2013-12-31 | Change | ||
|---|---|---|---|---|
| Net indebtedness | million EUR | million EUR | absolute | percentage |
| Long-term loans | 152.7 | 161.4 | -8.7 | -5.4 |
| Other long-term financial liabilities | 14.2 | 17.8 | -3.6 | -20.2 |
| Short-term financial liabilities | 110.4 | 118.1 | -7.7 | -6.5 |
| Financial indebtedness | 277.3 | 297.3 | -20.0 | -6.7 |
| Long-term financial receivables | 10.0 | 8.1 | 1.9 | 23.5 |
| Cash and cash equivalents | 8.3 | 6.9 | 1.4 | 20.3 |
| Net indebtedness | 259.0 | 282.3 | -23.3 | -8.3 |
| 01-01 – 2014-06-30 |
01-01 – 2013-12-31 |
Change | ||
|---|---|---|---|---|
| million EUR | million EUR | absolute | percentage | |
| Inflow of funds from current business operating activities |
37.3 | 7.2 | 30.1 | 418.1 |
| Inflow of funds from investment activities | 17.8 | 20.2 | -2.4 | -11.9 |
| Free cash flow | 55.1 | 27.4 | 27.7 | 101.1 |
| Inflow / Outflow of funds from financing activities | -50.1 | -18.0 | -32.1 | -178.3 |
| Cash-related change in financial resource funds | 5.0 | 9.4 | -4.4 | -46.8 |
| Change in financial resource funds due to currency translation influences |
0.0 | -0.5 | 0.5 | 100.0 |
| Financial resource funds at beginning of financial year |
-29.4 | -43.1 | 13.7 | 31.8 |
| Financial resource funds at end of financial year | -24.4 | -34.2 | 9.8 | 28.7 |
| Composition of financial resource funds | ||||
| Liquid funds | 8.3 | 13.3 | -5.0 | -37.6 |
| Short-term liabilities to banks | -32.7 | -47.5 | 14.8 | 31.2 |
| Financial resource funds at end of financial year | -24.4 | -34.2 | 9.8 | 28.7 |
On the basis of the earnings before taxes achieved in the first six months of 2014 to an amount of EUR 9.7 million, the company earned a cash flow from current business activities of EUR 37.3 million (previous year: EUR 7.2 million).
In comparison to the same period in the previous year the cash flow from investment activities declined by EUR 2.4 million to EUR 17.8 million. The payments are predominantly accounted for by the significantly reduced net investments in intangible assets and tangible assets to an amount of EUR 9.8 million (previous year: EUR 14.5 million) as well as by net investments in financial assets to an amount of EUR 10.0 million (previous year: EUR 2.1 million).
The free cash flow rose substantially due to the increase in the inflow of funds from current business activities of EUR 30.1 million and the decrease in the outflow of funds from investment activities of EUR 2.4 million.
The cash flow from financing activities in the reporting period came to EUR -50.1 million (previous year: EUR -18.0 million). Major outflows of funds relate to payments to company owners to an amount of EUR 21.8 million (previous year: EUR 24.3 million) and payments from the repayment of short-term financing funds from companies in which long-term equity is held to an amount of EUR 20.0 million (previous year: EUR 0 million).
You will find a detailed cash flow statement in the interim consolidated financial statement on page 23.
Interim Consolidated Report January to June 2014 Interim Consolidated Management Report Interim Consolidated Report January to June 2014
Supplementary report Nonfinancial performance indicators Risk report Outlook
No events of special importance have occurred since the end of the reporting period.
The average number of employees in the first six months of 2014 rose by 11.5 percent compared to the same period in the previous year to 6,304. The increase is primarily attributable to the expansion of Industrial Logistics business in the CONTRACT Division. The employees of the CONTAINER Division, 1,640 in the reporting period, were previously taken into account according to proportionate consolidation in the Group. Because of the amendment of the IFRS 11 accounting standard, they are no longer included in the number of Group employees.
Entrepreneurial action involves opportunities and risks. Responsible handling of potential opportunities and risks is a key element of solid corporate management for the BLG Group. Our opportunity and risk policy pursues the goal of increasing the enterprise value without taking unreasonably high risks. We have established an opportunity and risk management system for early identification of opportunities and potential threats. The central components of this system as well as the opportunities and risks of future development with significant influence on the assets, financial position and earnings situation are described in the section entitled "Risk report" in the 2013 Consolidated Management Report.
The economic opportunities stated in the section entitled "Opportunities" in the 2013 Consolidated Management Report still apply. The cooperation of the world's biggest shipping company groups 'P3', which has been classified as an opportunity up to now, was stopped during the reporting period due to a lack of approvals by the Chinese Ministry of Commerce. Whether opportunities or risks will, nevertheless, result from the continued plans for cooperation between these shipping companies for BLG in the future is currently not foreseeable for us.
The risk structure of the BLG Group has not changed significantly in the reporting period as compared to the description in the 2013 Consolidated Management Report. Currently no strategic or operational risks to continuity of operations and to the future development of our Group can be identified on the basis of an overall analysis.
The pace of global expansion will presumably accelerate moderately in the second half of 2014. According to economic experts, the impetus for this will primarily come from the advanced economies. In the USA there are expectations of an improvement in the dynamics of economic activity supported by an improved asset situation of households and companies, an increasingly bright picture on the labor and real estate markets and an expansive monetary policy.
Economic development in the euro zone will continue to suffer from the burden of structural problems, which are still present in several member states and for which solutions are slow and arduous in coming. However, the recovery of macroeconomic activity will strengthen temporarily, even though considerable differences continue to exist between the member states. According to experts, relatively sluggish economic dynamics will unfold in France and Italy while the basic economic trend for Germany still points to a substantial upswing in the further forecast period that will persist. The conditional framework for the German economy remains favorable. The monetary policy continues to have an expansive effect, interest rates remain at a historical low and the building boom is unchecked. The financing terms for companies are also extremely advantageous. The domestic economic impetus thus appears intact.
The pace of expansion in the up-and-coming economies, on the other hand, will hardly strengthen in the forecast period. They will profit from the increasing economic dynamics in major industrialized nations, but at the same time the slowly rising long-term interest rates, particularly in the US, will presumably give rise to increasingly disadvantageous financing terms for the newly industrializing countries. Overall economic production in the newly industrializing countries will rise at more than double the rate as in the advanced economies in the forecast period. Only Russia will probably experience an economic downturn in the current year. All in all, economic experts expect 2.9 percent growth for overall world economic production this year and 3.3 percent next year.
After strong sales in 2013 (approx. EUR 230 billion) a rise in sales between one and three percent is again assumed for the current year. Logistics providers report a substantial increase in incoming orders with good capacity utilization nationwide. For 2014 they expect an expansion in capacity and further buildup of personnel. This confidence is not as clearly noticeable in all segments of the industry, however. Logistics specialists in industry and commerce expect a significant boost in the domestic market in contrast to subdued impetus in connection with cross-border demand. Thus, complexity and cost pressure will continue to prevail and influence the economy in the current year. Logistics providers in industry, commerce, the service sector and science have to continue to counter this development with intensive cooperation.
At present the business climate remains clearly positive in spite of a slight decline in May 2014. Overall, transportation and logistics companies report good business development. Although the traditional summer doldrums make themselves felt, experts do not reckon with a worsening of the business situation. Transport sales increased again in the last three months and support the business situation. There is little movement on the cost front, by contrast. And no changes can be expected in the coming months. Prices show a similar picture.
Business climate among logistics providers
Source: BVL/IfW
As far as development of the entire transportation sector is concerned, current assessments of experts in connection with the so-called Transport Market Barometer of ProgTrans AG Basel and Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW) in Germany reckon with stable demand and predominantly constant prices in the coming six months. The expectations regarding development of demand and prices for each transport segment vary considerably.
The prospects for road freight traffic are viewed as stable in spite of the noticeable slowdown in Eastern Europe. At the same time a slight but constant price rise is expected that will increasingly level off, however.
With regard to rail freight traffic, a slight growth in volume as well as significantly falling prices are expected, particularly in domestic traffic and in other countries of Western Europe.
The mood remains subdued as far as transport volume in the inland shipping sector is concerned. The majority of experts view the prospects for Eastern Europe traffic in particular as uncertain. The same applies to freight rates. Thus, the outlook in comparison to the other means of transportation is assessed as rather moderate.
Logistics experts dampen hopes of growth in sea freight volumes. Nevertheless, stable development is expected in European traffic as well as slight growth on the North America route and even strong growth on the Asia/Pacific route. Parallel to that, there are expectations of rising sea freight rates, especially in North America and Asia/Pacific traffic.
On the basis of sound planning and against the backdrop of the outlined legal and economic conditional framework, we still adhere to the statements made in the 2013 Consolidated Management Report regarding the entire year 2014 in connection with development of sales and earnings before taxes (EBT) in the Group.
In this context our objective for the 2014 financial year is continuation of the consistent dividend policy with a dividend of EUR 0.40 per share.
In addition, no organizational changes having major significance for the structure of the Group are currently planned for the current financial year.
| TEUR | 2014-06-30 | 2013-12-31 (adjusted) |
2013-01-01 (adjusted) |
|---|---|---|---|
| ASSETS | |||
| Long-term assets | |||
| Intangible fixed assets | |||
| Goodwill | 7,881 | 7,881 | 6,565 |
| Other intangible fixed assets | 10,254 | 11,245 | 10,108 |
| Prepayments on account of intangible fixed assets | 5,203 | 4,519 | 5,306 |
| 23,338 | 23,645 | 21,979 | |
| Tangible fixed assets | |||
| Land, land rights and buildings, including those on third-party land |
182,550 | 187,789 | 193,963 |
| Technical equipment and machinery | 71,100 | 73,293 | 63,085 |
| Other equipment, operating and office equipment | 16,551 | 17,135 | 14,091 |
| Prepayments and assets under construction | 5,013 | 2,870 | 28,796 |
| 275,214 | 281,087 | 299,935 | |
| Financial assets | |||
| Shares in affiliated companies | 343 | 343 | 373 |
| Shares in companies included at equity | 166,513 | 144,719 | 151,255 |
| Other financial assets | 3,711 | 3,711 | 113 |
| 170,567 | 148,773 | 151,741 | |
| Long-term financial receivables | 10,003 | 8,115 | 8,087 |
| Other long-term assets | 7 | 65 | 63 |
| Deferred taxes | 4,025 | 3,910 | 9,607 |
| 483,154 | 465,595 | 491,412 | |
| Short-term assets | |||
| Inventories | 3,977 | 4,364 | 5,714 |
| Trade receivables | 160,203 | 151,499 | 142,093 |
| Other assets | 13,166 | 66,402 | 57,490 |
| Refund claims from taxes on income | 1,780 | 1,870 | 834 |
| Cash and cash equivalents | 8,312 | 6,935 | 10,811 |
| 187,438 | 231,070 | 216,942 | |
| 670,592 | 696,665 | 708,354 |
|---|---|---|
Consolidated Balance Sheet
| TEUR | 2014-06-30 | 2013-12-31 (adjusted) |
2013-01-01 (adjusted) |
|---|---|---|---|
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Capital of BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– included |
|||
| Subscribed capital | 9,984 | 9,984 | 9,984 |
| Revenue reserves | |||
| Legal reserves | 998 | 998 | 998 |
| Other revenue reserves | 6,446 | 6,446 | 5,734 |
| Balance sheet profit | 625 | 1,521 | 1,521 |
| 18,053 | 18,949 | 18,237 | |
| Equity | |||
|---|---|---|---|
| Capital of BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– included |
|||
| Subscribed capital | 9,984 | 9,984 | 9,984 |
| Revenue reserves | |||
| Legal reserves | 998 | 998 | 998 |
| Other revenue reserves | 6,446 | 6,446 | 5,734 |
| Balance sheet profit | 625 | 1,521 | 1,521 |
| 18,053 | 18,949 | 18,237 | |
| Capital of BLG LOGISTICS GROUP AG & Co. KG included | |||
| Limited liability capital | 51,000 | 51,000 | 51,000 |
| Capital reserves | 50,182 | 50,182 | 50,182 |
| Revenue reserves | 180,679 | 179,907 | 175,868 |
| Other reserves | -21,806 | -18,600 | -13,629 |
| Reserves from fair value measurement of financial instruments | -3,576 | -2,053 | -4,273 |
| Foreign currency adjustment items | 472 | -1,167 | 532 |
| Balance sheet result of companies included | -56,613 | -62,074 | -38,218 |
| Balance sheet profit | 0 | 19,591 | 23,054 |
| 200,338 | 216,786 | 244,516 | |
| Non-controlling interests | 6,214 | 5,893 | 11,493 |
| 224,605 | 241,628 | 274,246 | |
| Long-term liabilities | |||
| Long-term loans (excluding short-term share) | 152,749 | 161,438 | 144,879 |
| Other long-term financial liabilities | 14,197 | 17,828 | 21,360 |
| Deferred government grants | 230 | 254 | 221 |
| Other long-term liabilities | 178 | 883 | 2,931 |
| Long-term provisions | 34,932 | 33,870 | 29,883 |
| Deferred taxes | 1,874 | 1,725 | 4,277 |
| 204,160 | 215,998 | 203,551 | |
| Short-term liabilities | |||
| Trade payables | 70,451 | 71,431 | 62,358 |
| Other short-term financial liabilities | 110,365 | 118,066 | 117,684 |
| Short-term share for government grants | 5 | 6 | 196 |
| Other short-term liabilities | 41,953 | 30,461 | 32,304 |
| Liabilities on taxes on income | 8,770 | 9,674 | 5,210 |
| Short-term provisions | 10,283 | 9,401 | 12,805 |
| 241,827 | 239,039 | 230,557 | |
| 670,592 | 696,665 | 708,354 |
Consolidated Income Statement
| TEUR | 01-01 – 2014-06-30 | 01-01 – 2013-06-30 (adjusted) |
|---|---|---|
| Sales | 431,169 | 432,230 |
| Other operating income | 17,976 | 17,958 |
| Cost of materials | -215,124 | -225,752 |
| Personnel expenses | -138,577 | -124,984 |
| Depreciation of long-term intangible fixed assets and tangible fixed assets | ||
| -15,413 | -13,927 | |
| Other operating expenses | -80,289 | -81,660 |
| Income from long-term financial receivables | 20 | 22 |
| Other interest and similar income | 683 | 671 |
| Interest and similar expenses | -4,116 | -3,487 |
| Income from companies included at equity | 13,309 | 9,504 |
| Income from other long-term equity investments and affiliated companies | 34 | 32 |
| Result before taxes | 9,672 | 10,607 |
| Taxes on income | -1,802 | -3,015 |
| Group net income for the financial year | 7,870 | 7,592 |
| The Group net income is allocated as follows: | ||
| BREMER LAGERHAUS-GESELLSCHAFT | ||
| –Aktiengesellschaft von 1877– | 640 | 755 |
| BLG LOGISTICS GROUP AG & Co. KG | 6,233 | 5,453 |
| Non-controlling interests | 997 | 1,384 |
| 7,870 | 7,592 | |
| Earnings per share (diluted and undiluted) | EUR 0.17 | EUR 0.20 |
| of that from continued operations | EUR 0.17 | EUR 0.20 |
| TEUR | 01-01 – 2014-06-30 | 01-01 – 2013-06-30 (adjusted) |
|---|---|---|
| Group net income | 7.870 | 7.592 |
| Other Comprehensive Income after income taxes | ||
| Items that will not be reclassified subsequently to profit or loss | ||
| Revaluation of net pension liabilities | -1.198 | -1.099 |
| Income taxes on items that will not be reclassified subsequently to profit or loss |
190 | 300 |
| Share of companies included at equity in items that will not be reclassified subsequently to profit or loss |
-2.198 | -83 |
| -3.206 | -882 | |
| Items that can be reclassified subsequently to profit or loss | ||
| Currency translation | -93 | -622 |
| Change in measurement of derivative financial instruments | -660 | 527 |
| Income taxes on items that can be reclassified subsequently to profit or loss | -107 | -20 |
| Share of companies included at equity in items that can be reclassified subsequently to profit or loss |
976 | 597 |
| 116 | 482 | |
| Other comprehensive income after income taxes | -3.090 | -400 |
| Comprehensive income | 4.780 | 7.192 |
| Of the comprehensive income, the following amounts are allocated to: | ||
| BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– |
640 | 755 |
| BLG LOGISTICS GROUP AG & Co. KG | 3.143 | 5.081 |
| Non-controlling interests | 997 | 1.356 |
| 4.780 | 7.192 |
| TEUR | I. Capital of BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– included |
||||
|---|---|---|---|---|---|
| Subscribed capital |
Revenue reserves |
Balance sheet profit |
Total | ||
| As of January 1, 2013 before IFRS 11 adjustments | 9,984 | 6,732 | 1,521 | 18,237 | |
| Adjustments for IFRS 111 | 0 | 0 | 0 | 0 | |
| As of January 1, 2013 after IFRS 11 adjustments | 9,984 | 6,732 | 1,521 | 18,237 | |
| Changes in financial year | |||||
| Group net income | 0 | 0 | 755 | 755 | |
| Earnings and expenses reported directly in equity | 0 | 0 | 0 | 0 | |
| Comprehensive income | 0 | 0 | 755 | 755 | |
| Dividends/withdrawals | 0 | 0 | -1,536 | -1,536 | |
| Control-preserving acquisitions of shares | 0 | 0 | 0 | 0 | |
| Other changes | 0 | 0 | 0 | 0 | |
| As of June 30, 2013 | 9,984 | 6,732 | 740 | 17,456 | |
| As of January 1, 2014 | 9,984 | 7,444 | 1,521 | 18,949 | |
| Changes in financial year | |||||
| Group net income | 0 | 0 | 640 | 640 | |
| Earnings and expenses reported directly in equity | 0 | 0 | 0 | 0 | |
| Comprehensive income | 0 | 0 | 640 | 640 | |
| Dividends/withdrawals | 0 | 0 | -1,536 | -1,536 | |
| Other changes | 0 | 0 | 0 | 0 | |
| As of June 30, 2014 | 9,984 | 7,444 | 625 | 18,053 |
1 Regarding the adjustments according to IFRS 11, we refer to disclosure no. 1 in the condensed notes on page 24ff.
Consolidated Statement of Changes in Equity
| II. | Capital of BLG LOGISTICS GROUP AG & Co. KG included | III. Non-controlling interests |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Limited liability capital |
Capital reserves |
Revenue reserves |
Other reserves |
Reserves from fair value mea surement of financial instru ments |
Foreign currency adjustment items |
Balance sheet result of companies included |
Balance sheet profit |
Total | Hybrid equity |
Other minorities |
Total |
| 51,000 | 50,182 | 188,084 | -13,544 | -4,286 | 532 | -50,519 | 23,054 | 244,503 | 78,010 | 11,967 | 352,717 |
| 0 | 0 | -12,216 | -85 | 13 | 0 | 12,301 | 0 | 13 | -78,010 | -474 | -78,471 |
| 51,000 | 50,182 | 175,868 | -13,629 | -4,273 | 532 | -38,218 | 23,054 | 244,516 | 0 | 11,493 | 274,246 |
| 0 | 0 | -5,714 | 0 | 0 | 0 | 11,167 | 0 | 5,453 | 0 | 1,384 | 7,592 |
| 0 | 0 | 0 | -911 | 1,310 | -686 | -85 | 0 | -372 | 0 | -28 | -400 |
| 0 | 0 | -5,714 | -911 | 1,310 | -686 | 11,082 | 0 | 5,081 | 0 | 1,356 | 7,192 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22,159 | -22,159 | 0 | -620 | -24,315 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 1,743 | 143 | 0 | 0 | -1,814 | 0 | 72 | 0 | 0 | 72 |
| 51,000 | 50,182 | 171,897 | -14,397 | -2,963 | -154 | -28,950 | 895 | 227,510 | 0 | 12,229 | 257,195 |
| 51,000 | 50,182 | 179,907 | -18,600 | -2,053 | -1,167 | -62,074 | 19,591 | 216,786 | 0 | 5,893 | 241,628 |
| 0 | 0 | -1,227 | 0 | 0 | 0 | 7,460 | 0 | 6,233 | 0 | 997 | 7,870 |
| 0 | 0 | 0 | -3,206 | -1,523 | 1,639 | 0 | 0 | -3,090 | 0 | 0 | -3,090 |
| 0 | 0 | -1,227 | -3,206 | -1,523 | 1,639 | 7,460 | 0 | 3,143 | 0 | 997 | 4,780 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19,591 | -19,591 | 0 | -676 | -21,803 |
| 0 | 0 | 1,999 | 0 | 0 | 0 | -1,999 | 0 | 0 | 0 | 0 | 0 |
| 51,000 | 50,182 | 180,679 | -21,806 | -3,576 | 472 | -56,613 | 0 | 200,338 | 0 | 6,214 | 224,605 |
Segment Reporting
| AUTOMOBILE | CONTRACT | |||
|---|---|---|---|---|
| TEUR | 2014 | 2013 (adjusted) |
2014 | 2013 (adjusted) |
| Sales | ||||
| with external third parties | 225,380 | 218,338 | 207,895 | 216,321 |
| Inter-segment sales | 1,761 | 2,142 | 345 | 336 |
| Result from companies included at equity | -218 | 207 | 507 | 773 |
| EBITDA | 12,794 | 12,708 | 8,743 | 14,761 |
| Depreciation | -6,366 | -6,384 | -8,515 | -7,028 |
| Segment result (EBIT)1 | 6,428 | 6,324 | 228 | 7,733 |
| in % of sales | 2,9% | 2,9% | 0,1% | 3,6% |
| Interest income | 1 | 104 | 619 | 462 |
| Interest expenses | -2,646 | -2,876 | -2,819 | -1,987 |
| Result from other long-term equity investments |
6 | 0 | 18 | 0 |
| Depreciation of financial assets | 0 | 7 | 0 | 15 |
| Segment result (EBT) | 3,789 | 3,559 | -1,954 | 6,223 |
| Other information | ||||
| Other non-cash items | -296 | 62 | -313 | 347 |
| Impairments | 0 | 0 | -786 | 0 |
| Shares in companies included at equity2 | 7,796 | 8,632 | 4,193 | 2,600 |
| Goodwill contained in segment assets2 | 7,881 | 7,881 | 0 | 0 |
| Segment assets2 | 249,030 | 242,371 | 234,858 | 257,940 |
| Investments in long-term intangible fixed assets and tangible fixed assets |
2,689 | 5,663 | 6,963 | 8,241 |
| Segment liabilities2 | 137,308 | 129,001 | 104,841 | 125,508 |
| Equity2 | 43,581 | 42,407 | 46,453 | 47,390 |
| Employees | 2,329 | 2,235 | 3,748 | 3,204 |
1 Excluding result from other participations
2 Based on key dates June 30, 2014 and December 31, 2013
3 The number of employees relates to companies included on proportionate basis (50 percent)
Segment Reporting
| CONTAINER | Total of segments subject to reporting requirements |
Reconciliation | GROUP | ||||
|---|---|---|---|---|---|---|---|
| 2014 | 2013 (adjusted) |
2014 | 2013 (adjusted) |
2014 | 2013 (adjusted) |
2014 | 2013 (adjusted) |
| 139,110 | 129,514 | 572,385 | 564,173 | -141,216 | -131,943 | 431,169 | 432,230 |
| 1,492 | 1,204 | 3,598 | 3,682 | -3,598 | -3,737 | 0 | -55 |
| -430 | -1,503 | -141 | -523 | 13,450 | 10,027 | 13,309 | 9,504 |
| 32,342 | 26,123 | 53,879 | 53,592 | -25,415 | -26,296 | 28,464 | 27,296 |
| -13,880 | -14,684 | -28,761 | -28,096 | 13,348 | 14,169 | -15,413 | -13,927 |
| 18,462 | 11,439 | 25,118 | 25,496 | -12,067 | -12,127 | 13,051 | 13,369 |
| 13,3% | 8,8% | 4,4% | 4,5% | n.s. | n.s. | 3,0% | 3,1% |
| 1,869 | 2,516 | 2,489 | 3,082 | -1,786 | -2,389 | 703 | 693 |
| 4,541 | -4,301 | -10,006 | -9,164 | 5,890 | 5,677 | -4,116 | -3,487 |
| 623 0 |
0 679 |
647 0 |
0 701 |
-613 0 |
0 -669 |
34 0 |
0 32 |
| 16,413 | 10,333 | 18,248 | 20,115 | -8,576 | -9,508 | 9,672 | 10,607 |
| -2,955 | 542 | -3,564 | 951 | 2,537 | -1,403 | -1,037 | -452 |
| 0 | 0 | -786 | 0 | 0 | 0 | -786 | 0 |
| 88,950 | 74,317 | 100,939 | 85,549 | 65,574 | 59,170 | 166,513 | 144,719 |
| 512 | 512 | 8,393 | 8,393 | -512 | -512 | 7,881 | 7,881 |
| 393,801 | 425,295 | 877,689 | 925,606 | -379,415 | -379,440 | 498,274 | 546,166 |
| 3,688 | 2,805 | 13,340 | 16,709 | -3,492 | -1,536 | 9,848 | 15,173 |
| 191,729 | 161,771 | 433,878 | 416,280 | -174,533 | -159,911 | 259,345 | 256,369 |
| 216,017 | 208,966 | 306,051 | 298,763 | -81,446 | -57,135 | 224,605 | 241,628 |
| 1,6403 | 1,6403 | 7,717 | 7,079 | -1,413 | -1,424 | 6,304 | 5,655 |
n.s. = not speccified
Consolidated Cash Flow Statement
| 01-01 – | ||
|---|---|---|
| 01-01 – | 2013-06-30 | |
| TEUR | 2014-06-30 | (adjusted) |
| Result before taxes | 9,672 | 10,607 |
| Depreciation of long-term intangible fixed assets, tangible fixed assets, financial assets | ||
| and long-term financial receivables | 15,413 | 13,927 |
| Result from disposals of fixed assets | 63 | -271 |
| Result from companies included at equity | -13,309 | -9,504 |
| Result from other long-term equity investments | -35 | -32 |
| Interest result | 3,413 | 2,794 |
| Other non-cash expenses and income | -1,037 | 350 |
| 14,180 | 17,871 | |
| Change in trade receivables | -8,705 | -13,184 |
| Change in other assets | 15,251 | -9,141 |
| Change in inventories | 388 | 890 |
| Change in government grants | -23 | 38 |
| Change in provisions | 1,343 | 214 |
| Change in trade payables | -980 | 6,528 |
| Change in other liabilities | 21,352 | 11,413 |
| 28,626 | -3,242 | |
| Proceeds from interest | 703 | 693 |
| Payments for interest | -3,515 | -3,798 |
| Payments for taxes on income | -2,688 | -4,280 |
| -5,500 | -7,385 | |
| Cash flow from current operating activities | 37,306 | 7,244 |
| Proceeds from disposals of fixed tangible assets and intangible fixed assets | 497 | 1,340 |
| Payments for investments in fixed tangible assets and intangible fixed assets | -9,849 | -14,452 |
| Payments for investments in financial assets | -10,038 | -2,077 |
| Payments for granting loans to companies in which long-term equity is held | 0 | -2,994 |
| Proceeds from repayment of loans to companies in which long-term equity is held | 0 | 1,184 |
| Proceeds from dividends received | 37,203 | 37,207 |
| Cash flow from investment activities | 17,813 | 20,208 |
| Proceeds from repayment of loans to company owners | 463 | 1,013 |
| Payments for granting loans to company owners | -13 | -206 |
| Payments to company owners | -21,803 | -24,315 |
| Proceeds from taking out financial loans | 0 | 20,000 |
| Payments for repayment of financial loans | -8,689 | -10,799 |
| Payments for repayment of short-term loans from companies in which long-term equity is held | -20,000 | -3,695 |
| Proceeds from repayment of leasing receivables | 81 | 48 |
| Payment for repayment of leasing liabilities | -169 | -35 |
| Cash flow from financial activities | -50,130 | -17,989 |
| Net increase/decrease in financial resource funds | 4,989 | 9,463 |
| Change in cash and cash equivalents due to currency translation influences | 6 | -562 |
| Financial resource funds at beginning of financial year1 | -29,425 | -43,110 |
| Financial resource funds at end of financial year | -24,430 | -34,209 |
| Liquid funds2 | 8,312 | 13,285 |
| Short-term liabilities to banks2 | -32,742 | -47,494 |
| -24,430 | -34,209 | |
1 Based on key dates January 1, 2014 and January 1, 2013 2 Based on key dates June 30, 2014 and June 30, 2013
BLG LOGISTICS is headed by BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– (BLG AG) and BLG LOGISTICS GROUP AG & Co. KG, Bremen (BLG KG), two companies that are closely affiliated legally, economically and organizationally based on the identical corporate bodies and the special owner structure. These two enterprises form an economic entity and are included in the condensed interim consolidated financial statement for the first time as a single parent company with the designation BLG LOGISTICS while in the past only BLG AG was included in the consolidated financial statement of BLG LOGISTICS as the parent company.
In the past BLG KG was included in the consolidated financial statement of BLG LOGISTICS as a subsidiary so that this does not result in any impacts on the assets, financial position and earnings situation of the Group, with the following exception. Up to now the limited liability capital of BLG KG was reported as equity to avoid the contradictory accounting consequences of IAS 32 although it involved non-controlling interests in accordance with IAS 32AG.29A that should have been reported as borrowed capital. If BLG AG and BLG KG are viewed as a single parent company, the limited liability capital of BLG KG is original equity of the BLG LOGISTICS GROUP. The reporting of the limited liability capital of BLG KG as equity of the BLG LOGISTICS GROUP, as already carried out in the past, is now in conformity with IAS 32.
The condensed interim consolidated financial statement of BLG LOGIS-TICS for the first six months was prepared in accordance with Section 37w of the Securities Trading Act (WpHG) as well as in line with the International Accounting Standards IAS 34 "Interim financial reporting" and the German accounting standard DRS 16 (2012) "Interim financial reporting" and therefore does not contain all information and notes to the financial statement that are necessary for a consolidated financial statement at the end of the financial year. For this reason the interim consolidated financial statement should be read in connection with the audited consolidated financial statement of BLG AG as of December 31, 2013.
With the exception of the inapplicable provisions according to IAS 34, the interim consolidated financial statement has been prepared in accordance with the International Financial Reporting Standards (IFRS), which were adopted and published by the International Accounting Standards Board (IASB) and whose application became mandatory on June 30, 2014, and with their interpretation by the International Financial Reporting Interpretations Committee (IFRIC). Apart from the above exception, all IFRS and IFRIC that have been published and adopted within the framework of the endorsement procedure of the European Union and whose application is mandatory have been complied with.
The companies BLG AG and BLG KG, which are registered in the register of companies of the Bremen Local Court, have their headquarters at Präsident-Kennedy-Platz 1, Bremen, Germany.
The consolidated financial statement is prepared in euros. All figures are given in thousands of euros (TEUR), unless otherwise indicated or TEUR is not specified.
Preparation of the financial statement in accordance with IFRS requires assessments and estimations of individual facts and circumstances and the exercise of discretion by the management that may have impacts on the figures reported in the consolidated financial statement.
Changes in estimations have resulted in comparison to the consolidated financial statement of December 31, 2013, particularly in the following balance sheet items:
Long-term personnel-related provisions were not measured on the basis of external expert reports and confirmed assets, but by means of in-company adjustment of the values of December 31, 2013 based on the interest rates applying on the interim financial statement date.
Calculation of the major long-term benefits to employees as of June 30, 2014 was based on the following discount rates:
| Discount rate | 2014-06-30 | 2013-12-31 |
|---|---|---|
| Direct commitments and working-life | ||
| time accounts | 3.10% | 3.80% |
| BLG company pension | 2.90% | 3.50% |
| Social future concept | 2.90% | 3.50% |
| Provisions for anniversaries | 2.50% | 3.10% |
The other actuarial parameters were maintained unchanged from the consolidated financial statement of December 31, 2013.
Taxes on income are reported in each reporting period on the basis of the best estimate of the weighted average annual income tax rate that is expected for the entire year. This tax rate is applied to the pretax result of the interim consolidated financial statement adjusted for tax-related special effects. Income tax payments already made are taken into account in the calculation.
The estimations made were extensively based on empirical values and other relevant factors, taking into account the going concern premise. The actual results may differ from the estimations.
On the basis of the measurement methods used, the financial instruments of the Group reported at the fair value are classified into different levels of the fair value hierarchy defined as follows:
Level 1: Quoted (not adjusted) prices on active markets for identical assets and liabilities
Level 2: Methods in which all input parameters that have a significant effect on the reported fair value are either directly or indirectly observable
Level 3: Methods using input parameters that have a significant effect on the reported fair value and are not based on observable market data
Disclosure number 12 contains further information on the assumptions for determination of the fair values.
The accounting and measurement methods applied correspond in principle to the methods applied for preparation of the consolidated financial statement as of December 31, 2013. Furthermore, the Group applied the following new/revised standards relevant for BLG LOGIS-TICS, whose application was mandatory for the first time in the 2014 financial year:
IFRS 10 'Consolidated Financial Statements':
IFRS 10 creates a uniform definition of the term control and contains comprehensive rules for determining whether a parent company/subsidiary relationship exists and defining the entities to be consolidated. The new standard replaces the consolidation provisions in the previous IAS 27 'Consolidated and Separate Financial Statements' and SIC-12 'Consolidation – Special Purpose Entities'.
In accordance with IFRS 10, a subsidiary is controlled by a parent company if
In comparison to IAS 27 the criteria according to IFRS 10 have a more pronounced causal connection. Moreover, greater focus is placed on an economic approach to assessing individual circumstances. Merely the fact that a majority of the voting rights is held is not sufficient for assessing possible control according to IFRS 10.
This standard replaces IAS 31 'Interests in joint ventures' and SIC 13 'Jointly controlled entities – non-monetary contributions by venturers' and contains requirements regarding identification, classification and accounting of joint arrangements. The most significant amendment of IFRS 11 in relation to IAS 31 is the elimination of the proportionate consolidation of joint ventures that always have to be reported according to the equity method in future.
This affects to the full extent the CONTAINER Division, which has been included thus far via the participation in the operational management company EUROGATE GmbH & Co. KGaA, KG through proportionate consolidation according to the 50 percent share. When IFRS 11 is applied for the first time in the reporting year, the division will be included in the consolidated financial statements according to the equity method, retrospective as of January 1, 2013. In this connection 25 domestic companies and one foreign company will be changed over from proportionate consolidation to the equity method.
In segment reporting the result from companies included at equity will be reported as part of the EBIT according to the internal control (see page 21 f.). This also applies to 12 domestic and 16 foreign companies that were already included previously according to the equity method.
The impacts that resulted from the first application of the standard are listed in detail in the section 'Impacts of the changes in the accounting and measurement methods' on page 27 ff. The adjusted entities to be consolidated can be seen in disclosure number 3 'Entities to be consolidated and consolidation methods'.
IFRS 12 compiles the revised disclosure requirements in connection with IAS 27 and/or IFRS 10, IAS 31 and/or IFRS 11 and IAS 28 into one standard. According to IFRS 12, disclosures are to be made that enable the reporting entities to evaluate the type of commitment as well as risks and financial impacts related to subsidiaries, associates, joint arrangements, and unconsolidated special purpose entities.
Application of the standard results in extended disclosure requirements. Extension of the disclosures required in accordance with IAS 34 'Interim Financial Reporting' does not result from this, however. The additional disclosures will thus be presented for the first time in the notes to the consolidated financial statement as of December 31, 2014.
Amendments to transitional requirements of IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements' and IFRS 12 'Disclosure of interests in other entities':
The amendments clarify that the time of first application of IFRS 10 is the beginning of the reporting period in which the standard is applied for the first time. Furthermore, they specify that comparative data for the compulsory disclosure requirements of IFRS 12 in connection with subsidiaries, associated enterprises and joint arrangements shall be indicated on first application of the new consolidation rules on a mandatory basis only for the immediately prior comparative period. The disclosures on unconsolidated structured entities are completely excluded from the requirement for disclosure of comparative figures.
Amendments to IFRS 10 'Consolidated Financial Statements', IFRS 12 'Disclosure of interests in other entities' and IAS 27 'Separate Financial Statements' (investment companies):
The amendments contain a definition of terms for investment companies and exclude them from the scope of application of IFRS 10. In addition, the amendments stipulate obligatory disclosure notes for investment companies.
The amendments have not led to any impacts on the interim consolidated financial statement.
Amendments to IAS 32 'Financial Instruments: Presentation' (offsetting financial assets and financial liabilities): The amendments specify the requirements for offsetting financial assets and liabilities in the balance sheet in more detail by means of additional application guidelines. Extended disclosure notes result in individual cases.
The amendments have not led to any impacts on the interim consolidated financial statement.
Amendments to IAS 36 'Impairment of assets' (recoverable amount disclosures for nonfinancial assets):
The amendments clarify that the disclosure of information on the recoverable amount is only necessary for impaired nonfinancial assets or cash-generating units.
Furthermore, the amendment leads to introduction of new disclosure requirements that are necessary if impairment or reversal of impairment losses of a nonfinancial asset or cash-generating unit has taken place and the recoverable amount was determined on the basis of the fair value minus sales costs.
Application of the amendments has not led to any impacts on the interim consolidated financial statement.
Amendments to IAS 39 'Financial instruments: recognition and measurement' (novation of derivatives and continuation of hedge accounting):
As a result of the amendment, a change in the contracting party of a hedge instrument to a central counterparty as a consequence of legal or regulatory requirements does not lead to dissolution of a hedging relationship under certain conditions.
The amendments have not led to any impacts on the interim consolidated financial statement.
In the framework of the first-timel application of IFRS 11, the previous year's figures were adjusted. Retrospective application as of January 1, 2013 led to inclusion of the figures as of the beginning of the earliest comparative period in the consolidated balance sheet.
The changes with respect to the balance sheet date on December 31, 2013 and/or the comparative period January 1 to June 30, 2013 are shown in the following.
The Group has made use of the simplification resulting from the transitional requirements of IFRS 10 'Consolidated Financial Statements', IFRS 11 'Joint Arrangements' and IFRS 12 'Disclosure of interests in other entities' with regard to disclosure of the changes from initial application of the standards. The changes from the changeover in the inclusion of the CONTAINER Division from proportionate consolidation to the equity method as of January 1, 2013 as well as with respect to the balance sheet date as of June 30, 2014 were not included in the following presentation.
| 01-01 – 2013-06-30 |
01-01 – 2013-06-30 |
||
|---|---|---|---|
| TEUR | (adjusted) | (previous) | Change |
| Consolidated income statement | |||
| Sales | 432,230 | 590,065 | -157,835 |
| Other operating income | 17,958 | 31,595 | -13,637 |
| Cost of materials | -225,752 | -272,485 | 46,733 |
| Personnel expenses | -124,984 | -202,242 | 77,258 |
| Depreciation of long-term intangible fixed assets and tangible fixed assets | -13,927 | -33,325 | 19,398 |
| Other operating expenses | -81,660 | -94,813 | 13,153 |
| Income from long-term financial receivables | 22 | 22 | 0 |
| Other interest and similar income | 671 | 2,076 | -1,405 |
| Interest and similar expenses | -3,487 | -8,841 | 5,354 |
| Income from companies included at equity | 9,504 | 995 | 8,509 |
| Income from other long-term equity investments and affiliated companies | 32 | 710 | -678 |
| Result before taxes | 10,607 | 13,757 | -3,150 |
| Taxes on income | -3,015 | -3,696 | 681 |
| Group net income for the financial year | 7,592 | 10,061 | -2,469 |
| TEUR | 01-01 – 2013-06-30 (adjusted) |
01-01 – 2013-06-30 (previous) |
Change |
|---|---|---|---|
| Consolidated statement of Comprehensive Income | |||
| Other comprehensive income after income taxes | |||
| Items that will not be reclassified subsequently to profit or loss | |||
| Revaluation of net pension liabilities | -1,099 | -1,196 | 97 |
| Income taxes on items that will not be reclassified subsequently to profit or loss |
300 | 314 | -14 |
| Share of companies included at equity in items that will not be reclassified subsequently to profit or loss |
-83 | 0 | -83 |
| -882 | -882 | 0 | |
| Items that can be reclassified subsequently to profit or loss | |||
| Currency translation | -622 | -637 | 15 |
| Share in currency translation of associated enterprises | 0 | -191 | 191 |
| Change in measurement of derivative financial instruments | 527 | 1,479 | -952 |
| Share of change in measurement of derivative financial instruments of associated enterprises |
0 | 7 | -7 |
| Income taxes on items that can be reclassified subsequently to profit or loss | -20 | -172 | 152 |
| Share of companies included at equity in items that can be reclassified sub sequently to profit or loss |
597 | 0 | 597 |
| 482 | 486 | -4 | |
| Other comprehensive income after income taxes | -400 | -396 | -4 |
| Comprehensive income | 7,192 | 9,665 | -2,473 |
Condensed Notes to the Interim Consolidated Report
| TEUR | 2013-12-31 (adjusted) |
2013-12-31 (previous) |
Change |
|---|---|---|---|
| Consolidated Balance Sheet (assets) | |||
| Intangible fixed assets | |||
| Goodwill | 7,881 | 8,393 | -512 |
| Other intangible fixed assets | 11,245 | 37,003 | -25,758 |
| Prepayments on account of intangible fixed assets | 4,519 | 4,655 | -136 |
| 23,645 | 50,051 | -26,406 | |
| Tangible fixed assets | |||
| Land, land rights and buildings, including those on third-party land |
187,789 | 347,246 | -159,457 |
| Technical equipment and machinery | 73,293 | 244,339 | -171,046 |
| Other equipment, operating and office equipment | 17,135 | 23,961 | -6,826 |
| Prepayments and assets under construction | 2,870 | 11,689 | -8,819 |
| 281,087 | 627,235 | -346,148 | |
| Financial assets | |||
| Shares in affiliated companies | 343 | 343 | 0 |
| Shares in companies included at equity | 144,719 | 38,447 | 106,272 |
| Other financial assets | 3,711 | 4,465 | -754 |
| 148,773 | 43,255 | 105,518 | |
| Long-term financial receivables | 8,115 | 37,984 | -29,869 |
| Other long-term assets | 65 | 88 | -23 |
| Deferred taxes | 3,910 | 9,376 | -5,466 |
| Long-term assets | 465,595 | 767,989 | -302,394 |
| Inventories | 4,364 | 10,791 | -6,427 |
| Trade receivables | 151,499 | 196,444 | -44,945 |
| Other assets | 66,402 | 52,649 | 13,753 |
| Refund claims from taxes on income | 1,870 | 2,038 | -168 |
| Cash and cash equivalents | 6,935 | 61,872 | -54,937 |
| Short-term assets | 231,070 | 323,794 | -92,724 |
| Balance sheet total | 696,665 | 1,091,783 | -395,118 |
| TEUR | 2013-12-31 (adjusted) |
2013-12-31 (previous) |
Change |
|---|---|---|---|
| Consolidated Balance Sheet (equity and liabilities) | |||
| Capital of BREMER LAGERHAUS-GESELLSCHAFT | |||
| –Aktiengesellschaft von 1877– included | 18,949 | 18,949 | 0 |
| Capital of BLG LOGISTICS GROUP AG & Co. KG included | |||
| Limited liability capital | 51,000 | 51,000 | 0 |
| Capital reserves | 50,182 | 50,182 | 0 |
| Revenue reserves | 179,907 | 202,989 | -23,082 |
| Other reserves | -18,600 | -18,600 | 0 |
| Reserves from fair value measurement of financial instruments | -2,053 | -2,059 | 6 |
| Foreign currency adjustment items | -1,167 | -1,167 | 0 |
| Balance sheet result of companies included | -62,074 | -85,165 | 23,091 |
| Balance sheet profit | 19,591 | 19,591 | 0 |
| 216,786 | 216,771 | 15 | |
| Equity of non-controlling interests | |||
| Hybrid equity | 0 | 78,010 | -78,010 |
| Other minorities | 5,893 | 6,166 | -273 |
| 5,893 | 84,176 | -78,283 | |
| Equity | 241,628 | 319,896 | -78,268 |
| Long-term loans (excluding short-term share) | 161,438 | 250,485 | -89,047 |
| Other long-term financial liabilities | 17,828 | 79,507 | -61,679 |
| Deferred government grants | 254 | 29,622 | -29,368 |
| Other long-term liabilities | 883 | 976 | -93 |
| Long-term provisions | 33,870 | 81,407 | -47,537 |
| Deferred taxes | 1,725 | 2,360 | -635 |
| Long-term liabilities | 215,998 | 444,357 | -228,359 |
| Trade payables | 71,431 | 88,492 | -17,061 |
| Other short-term financial liabilities | 118,066 | 168,162 | -50,096 |
| Short-term share for government grants | 6 | 2,108 | -2,102 |
| Other short-term liabilities | 30,461 | 45,727 | -15,266 |
| Liabilities on taxes on income | 9,674 | 11,142 | -1,468 |
| Short-term provisions | 9,401 | 11,899 | -2,498 |
| Short-term liabilities | 239,039 | 327,530 | -88,491 |
| Balance sheet total | 696,665 | 1,091,783 | -395,118 |
There were no impacts on the earnings per share.
The other new/revised standards relevant for BLG LOGISTICS did not result in any significant impacts with the exception of additional disclosure notes. To this extent there was no adjustment of figures from the previous year.
The Group did not make use of the option of premature application of amendments that do not yet have to be applied.
The business activities of the Group are influenced by the demand for transport services and diverse logistics services, which in turn relate to overall economic production. This applies, for example, directly to freight forwarding and transport logistics via rail, road, inland and coastal shipping in the AUTOMOBILE Division, but also to cargo handling in the seaports and inland ports as well as provision of upstream and downstream logistics services in all divisions. In addition, Group sales in specific divisions are subject to seasonal fluctuations. For instance, the vacation shutdown of the automakers in nearly all segments of the AUTOMOBILE Division (seaport terminals, inland terminals, intermodal and freight forwarding) and Christmas business in the Retail Logistics segment of the CONTRACT Division have an impact. As a consequence, different sales and resulting profits may occur in the course of a financial year.
The interim consolidated financial statement encompasses BLG KG, BLG AG as its general partner and the companies listed in the table below:
As a consequence of the first application of IFRS 11 the inclusion of the CONTAINER Division was changed over from proportionate consolidation to the equity method as of January 1, 2013. The entities to be consolidated were amended accordingly. The changes resulting from application of IFRS 11 are described in detail in disclosure number 1 in the section 'Impacts of the changes in the accounting and measurement methods' on page 27 ff.
The consolidation methods were retained unchanged from the previous year with the exception of the changes due to initial application of IFRS 11.
Subsidiaries are companies that are controlled by the Group. When control prevails is described in disclosure number 1 on page 25 ff.
All major subsidiaries are included in the consolidated financial statement.
| Entities to be consolidated | 2014-06-30 | 2013-12-31 (adjusted) |
2013-12-31 (previous) |
Change |
|---|---|---|---|---|
| Number of companies included through full consolidation | ||||
| Domestic | 17 | 17 | 17 | 0 |
| Foreign | 11 | 11 | 11 | 0 |
| Number of companies included through proportionate consolidation | ||||
| Domestic | 0 | 0 | 25 | -25 |
| Foreign | 0 | 0 | 1 | -1 |
| Number of companies included via equity method | ||||
| Domestic | 36 | 37 | 12 | 25 |
| Foreign | 18 | 17 | 16 | 1 |
The companies included at equity encompass shares in joint ventures and associated enterprises.
Joint ventures exist when there are agreements in which the Group exercises joint control with at least one partner company and the Group is entitled to rights to the net assets instead of rights to the assets and liabilities on the basis of the liabilities of the agreement.
Associated enterprises are companies in which the Group has a major influence on the financial and business policy, but exercises no control or joint control.
In February 2014 BLG LOGISTIKA ADRIATIC d.o.o., Ploče, Croatia was established by BLG CarShipping GmbH & Co. KG. The object of the company is to provide logistics services. The company is included according to the equity method.
In the framework of in-Group restructuring EUROGATE Landterminal GmbH, Hamburg, which was included at equity, left the domestic entities to be consolidated as a result of merger with REMAIN GmbH Container-Depot and Repair, Hamburg, also included at equity.
Furthermore, BLG Automotive Logistics GmbH & Co. KG, Bremen was renamed BLG Industrielogistik GmbH & Co. KG, Bremen.
No business combinations were established during the reporting period.
In accordance with IAS 33, the undiluted earnings per share are calculated by dividing the annual Group net income apportioned to BLG AG by the average number of shares. The undiluted earnings per share for the first six months of 2014 come to EUR 0.17.
| Undiluted earnings per share | 01-01 – 2014-06-30 |
01-01 – 2013-06-30 |
|---|---|---|
| Share of annual Group net income accounted for by BREMER LAGER HAUS-GESELLSCHAFT –Aktiengesell schaft von 1877– (in TEUR) |
640 | 755 |
| Average number of ordinary shares issued |
3,840,000 | 3,840,000 |
| Undiluted earnings per share (in EUR) |
0.17 | 0.20 |
The average number of issued shares is adjusted by the number of all potentially diluted shares for the calculation of the diluted earnings per share. In the six months under review, as in the previous year, there was no difference from the undiluted earnings in terms of amount.
The diluted earnings per share, like the undiluted earnings per share, result to the full amount from continued activities.
On May 30, 2014 the Annual Shareholders' Meeting of BREMER LAGER-HAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– agreed to the proposal of the Board of Management and Supervisory Board to use the balance sheet profit of EUR 1,536,000 reported as of December 31, 2013 to pay out a dividend of EUR 0.40 per share (previous year: EUR 0.40). This corresponds to a payout ratio of 68 percent. The dividend was paid out accordingly to the shareholders on June 2, 2014.
Condensed Notes to the Interim Consolidated Report
| 01-01 – 2014-06-30 | 01-01 – 2013-06-30 (adjusted) |
|||||
|---|---|---|---|---|---|---|
| TEUR | Gross value |
Tax expense/ income |
Net value |
Gross value |
Tax expense/ income |
Net value |
| Items that will not be reclassified subsequently to pro fit or loss |
||||||
| Revaluation of net pension liabilities | -1,198 | 190 | -1,008 | -1,099 | 75 | -1,024 |
| Changes in tax rate | 0 | 0 | 0 | 0 | 225 | 225 |
| Share of associated enterprises in items that will not be reclassified subsequently to profit or loss |
-2,198 | 0 | -2,198 | -83 | 0 | -83 |
| -3,396 | 190 | -3,206 | -1,182 | 300 | -882 | |
| Items that can be reclassified subsequently to profit or loss |
||||||
| Currency translation | -93 | 0 | -93 | -622 | 0 | -622 |
| Change in fair value of derivative financial instruments (cash flow hedges) |
-660 | -107 | -767 | 527 | -20 | 507 |
| Share of associated enterprises in items that can be reclassified subsequently to profit or loss |
976 | 0 | 976 | 597 | 0 | 597 |
| 223 | -107 | 116 | 502 | -20 | 482 | |
| Total | -3,173 | 83 | -3,090 | -680 | 280 | -400 |
The company invested EUR 9,848,000 (previous year: EUR 15,173,000) in long-term intangible assets and tangible assets in the first half of 2014. Disinvestments to an amount of EUR 560,000 (previous year: EUR 1,068,000) were made and systematic depreciation of EUR 14,627,000 (previous year: EUR 13,927,000) was carried out. Furthermore, exceptional impairments on the tangible assets to an amount of EUR 786,000 were carried out in the first six months of 2014 because of a lack of other opportunities for use after expiration of a customer contract. The impairments applied to technical equipment and machinery to an amount of EUR 755,000 and to other equipment, operating and office equipment to an amount of EUR 31,000.
The following table provides an overview of the investments and disinvestments:
| 01-01 – 2014-06-30 | 01-01 – 2013-06-30 (adjusted) |
|||
|---|---|---|---|---|
| TEUR | Additions | Disposals | Additions | Disposals |
| Intangible assets | ||||
| Goodwill | 0 | 0 | 0 | 0 |
| Other intangible assets | 451 | 12 | 533 | 0 |
| Prepayments for intangible assets | 683 | 0 | 644 | 0 |
| 1,134 | 12 | 1,177 | 0 | |
| Tangible assets | ||||
| Land, land rights and buildings, including buildings on third-party land | 404 | 0 | 819 | 5 |
| Technical equipment and machinery | 3,788 | 512 | 5,661 | 1,031 |
| Other equipment, operating and office equipment | 1,880 | 36 | 3,620 | 32 |
| Prepayments and assets under construction | 2,642 | 0 | 3,896 | 0 |
| 8,714 | 548 | 13,996 | 1,068 | |
| Total | 9,848 | 560 | 15,173 | 1,068 |
The breakdown and development of equity in the first six months of 2014 and 2013 are shown as a separate part of the interim consolidated financial statement in the statement of changes in equity as of June 30, 2014.
The Group did not take out any further loans from banks in the first six months of 2014. The existing loans were repaid to an amount of EUR 8,689,000.
For loan liabilities to an amount of EUR 149.9 million (December 31, 2013(adjusted): EUR 156.8 million) the company assured the banks granting the loans customary covenants on the basis of the equity ratio as well as the net indebtedness. This amount includes EUR 60.0 million from promissory note loans.
For the case of failure to comply with the agreed covenants the terms provide for interest rate increases in two steps of 0.5 percent each. After that there is a right to terminate.
All covenants were complied with in the first half of 2014.
In the 2013 financial year failure to comply with a limit for the agreed ratios of net indebtedness could have resulted in an interest surcharge of 0.5 percent on the share of long-term financial loans and the promissory note loan for the next interest period. However, all banks with long-term commitments refrained from charging the interest surcharge to the benefit of BLG LOGISTICS. It was not possible to avoid the surcharge only in the case of the promissory note loan since the latter was placed via the capital market at many different financial institutions that have no direct business connections with BLG LOGISTICS.
Compliance with the covenants in the reporting period eliminates the basis for the interest increase of 0.5 percent. This is based on verification of compliance with the key financial indicators in the framework of the current interim consolidated financial statement. Withdrawal of the interest increase thus applies to the liabilities from the promissory note loan in the next interest period. That means merely an additional interest expense of EUR 150,000 results from overstepping the covenant for 2014. The risks resulting from the interest increase reported in this connection in the 2013 Annual Report will not apply to the stated extent.
For the detailed presentation see page 21 f.
Although no economic changes or changes in the internal control of the Group have taken place, the elimination of proportionate consolidation for joint ventures has considerable impacts on Group accounting.
In accordance with IFRS 8, segmenting is geared to internal control and the reporting structure. With regard to the Group, this means that segment reporting is carried out according to the corporate structure, i.e. broken down into divisions. That means the CONTAINER Division is included in segment reporting, as before, as a separate segment and then eliminated in the Reconciliation column. Parallel to that, the earnings from companies included at equity, which essentially encompass the earnings of the CONTAINER Division, will be reported in future according to the internal control as part of the EBIT. This also applies to 12 domestic and 16 foreign companies that were previously already included via the equity method.
The AUTOMOBILE Division essentially encompasses BLG AutoTerminal Bremerhaven GmbH & Co. KG, BLG AutoTransport GmbH & Co. KG, BLG CarShipping GmbH & Co. KG as well as BLG AutoRail GmbH.
The main enterprises of the CONTRACT Division are BLG Industrielogistik GmbH & Co. KG (formerly BLG Automotive Logistics GmbH & Co. KG), BLG Handelslogistik GmbH & Co. KG and BLG Cargo Logistics GmbH & Co. KG.
The CONTAINER Division encompasses the 50 percent shareholding in the operating management company of the EUROGATE Group, EUROGATE GmbH & Co. KGaA, KG. Through this shareholding the companies of the EUROGATE Group were previously included in the consolidated financial statement on a proportionate consolidation basis. As a result of the first application of IFRS 11, inclusion via the equity method applies retrospectively as of January 1, 2013. To ensure a transparent presentation, the CONTAINER Division will be depicted separately in the reconciliation of the segment results to the Group earnings before taxes (EBT) for the period.
BLG AG and BLG KG as the management and financial holding company of the Group do not form an operational segment in accordance with IFRS 8. These central divisions with their assets, liabilities and net income are contained in the reconciliation column.
The Group operates predominantly in Germany. The domestic portion of Group sales comprises EUR 398,067,000 (previous year(adjusted): EUR 406,594,000) and the foreign portion EUR 33,102,000 (previous year: EUR 25,636,000). The basis for allocation is the place of performance by the Group. The domestic portion of the Group's long-term intangible assets and tangible assets comprises EUR 293,835,000 (December 31, 2013(adjusted): EUR 300,171,000) and the foreign portion EUR 4,717,000 (December 31, 2013(adjusted): EUR 4,561,000).
Management and control of the Group are carried out on the basis of the data of the operational segments determined in accordance with IFRS. The accounting and measurement methods described in disclosure no. 6 apply to the segments in the same way as for the entire Group. The key parameter for the success of the segments is the EBT (earnings before taxes).
The depreciation is related to the segment fixed assets. The segment assets do not include shares in enterprises included at equity as well as the deferred and current taxes.
All segment assets are necessary for company operation.
The segment liabilities encompass the short-term liabilities necessary for financing and provisions excluding interest-bearing loans.
The investments comprise additions of tangible assets and of long-term intangible assets.
The reconciliation of the segment earnings to the Group earnings for the period before taxes (EBT) is as follows:
| 01-01 – 2014-06-30 |
01-01 – 2013-06-30 (adjusted) |
|---|---|
| 20,115 | |
| 7,887 | 965 |
| -16,413 | -10,333 |
| -50 | -140 |
| 10,607 | |
| 18,248 9,672 |
The carrying amounts and fair values of the financial assets and financial liabilities, including indication of their level in the fair value hierarchy, are shown in the table below. Classification into the levels of the fair value hierarchy is based on the measurement methods used and is described in disclosure no. 1 in the section 'Determination of the fair values' on page 25.
Financial assets available for sale amounting to EUR 4,054,000 (December 31, 2013(adjusted): EUR 4,054,000) and relating to shares in partnerships and joint stock companies for which no active market exists are reported under the long-term financial assets. Since the future cash flows are not reliably determinable, the fair values cannot be calculated by means of a measurement model. The participations are reported at purchase costs. Up to June 30, 2014 no shares in these partnerships and joint stock companies were sold. In addition, there are no plans to sell or retire parts of the recognized participations in the near future.
The fair values of level 2 for derivative financial instruments (interest rate swaps) are based on the fair value disclosures of banks. These fair values are checked for plausibility by applying interest to the expected future cash flows using market interest rates for comparable instruments. The forward rates of the reference interest rates for the hedging instruments used are applied to determine the variable cash flows. The credit spread is not part of the hedge relationship.
Shifts between the different levels of the fair value hierarchy are reported at the end of the reporting period in which they arose. No shifts took place in the first six months of 2014.
2014-06-30 2013-12-31 (adjusted)
| Carrying | Fair values | Carrying Fair values |
||||
|---|---|---|---|---|---|---|
| TEUR | amounts | Fair Value level |
Fair value |
amounts | Fair Value level |
Fair value |
| ASSETS | ||||||
| Financial assets measured at fair value | ||||||
| short-term | ||||||
| Derivatives with hedge relationship | 0 | 2 | 0 | 15 | 2 | 15 |
| Derivatives without hedge relationship | 0 | 2 | 0 | 0 | 2 | 0 |
| 0 | 15 | |||||
| Financial assets not measured at fair value | ||||||
| long-term | ||||||
| Shares in affiliated companies and other participations | 4,051 | n.r.d. | 4,051 | n.r.d. | ||
| Other financial assets | 3 | n.r.d. | 3 | n.r.d. | ||
| Other long-term financial receivables | 10,003 | 2 | 10,003 | 8,115 | 2 | 8,115 |
| Miscellaneous other long-term assets | 7 | 2 | 7 | 65 | 2 | 65 |
| short-term | ||||||
| Trade receivables | 160,203 | n.s. | 151,499 | n.s. | ||
| Short-term financial receivables | 2,812 | n.s. | 55,656 | n.s. | ||
| Miscellaneous other short-term assets | 8,379 | n.s. | 5,619 | n.s. | ||
| Cash and cash equivalents | 8,312 | n.s. | 6,935 | n.s. | ||
| 193,770 | 231,943 | |||||
| EQUITY AND LIABILITIES | ||||||
| Financial liabilities measured at fair value | ||||||
| short-term | ||||||
| Derivatives with hedge relationship | 2,953 | 2 | 2,953 | 2,362 | 2 | 2,362 |
| Derivatives without hedge relationship | 82 | 2 | 82 | 113 | 2 | 113 |
| 3,035 | 2,475 | |||||
| Financial liabilities not measured at fair value | ||||||
| long-term | ||||||
| Long-term loans | 152,749 | 2 | 156,215 | 161,438 | 2 | 163,842 |
| Liabilities from finance leasing | 1,331 | 2 | 1,398 | 866 | 2 | 871 |
| Other long-term financial liabilities | 12,866 | 2 | 12,866 | 16,962 | 2 | 16,962 |
| Miscellaneous other long-term liabilities | 11 | 2 | 11 | 2 | 2 | 2 |
| short-term | ||||||
| Trade liabilities | 70,451 | n.s. | 71,431 | n.s. | ||
| Short-term financial liabilities to banks | 50,255 | 2 | 50,259 | 53,873 | 2 | 53,959 |
| Liabilities from finance leasing | 309 | 2 | 317 | 165 | 2 | 171 |
| Other short-term financial liabilities | 56,766 | n.s. | 61,553 | n.s. | ||
| Other short-term liabilities | 22,273 | n.s. | 7,949 | n.s. | ||
| 367,011 | 374,239 |
n.r.d.. = not reliably determinable
n.s. = not specified
The impacts of initial application of IFRS 11 to the contingent liabilities existing in the Group for the benefit of affiliated companies are stated in the following. The adjustments essentially result from the changeover of inclusion of the CONTAINER Division from proportionate consolidation to the equity method as well as a division of companies included at equity into joint ventures and associated enterprises.
| TEUR | 2013-12-31 (adjusted) |
2013-12-31 (previous) |
|---|---|---|
| Joint ventures | ||
| Liabilities from guarantees | 0 | 2,135 |
| Liabilities from guarantee agreements | 409 | 408 |
| Miscellaneous | 0 | 134 |
| 409 | 2,677 | |
| Associated enterprises | ||
| Liabilities from guarantees | 1,350 | 1,350 |
| 1,350 | 1,350 | |
| Companies not included | ||
| Liabilities from guarantee agreements | 400 | 400 |
| 400 | 400 | |
| Total | 2,159 | 4,427 |
Furthermore, the contingent liabilities in the first six months of 2014 have not changed significantly from the data contained in the consolidated financial statement as of December 31, 2013 in the notes to the consolidated financial statement under disclosure no. 40.
| TEUR | 2014-06-30 | 2013-12-31 (adjusted) |
2013-12-31 (previous) |
|---|---|---|---|
| Purchase commit ments |
14,265 | 25,803 | 35,694 |
| Share of puchase commitments of joint ventures |
0 | 0 | 10,162 |
| Total | 14,265 | 25,803 | 45,856 |
The purchase commitments essentially result from agreements concluded for the acquisition of tangible fixed assets. The reduction compared to December 31, 2013 is primarily due to investments made in railway wagon capacity.
The net liabilities from the purchase commitments are predominantly due within the next two years.
The impacts of initial application of IFRS 11 to the related party relationships are stated in the following. The adjustments essentially result from the changeover of inclusion of the CONTAINER Division from proportionate consolidation to the equity method as well as a division of companies included at equity into joint ventures and associated enterprises.
Furthermore, the related party relationships in the first six months of 2014 have not changed significantly from those described in the consolidated financial statement as of December 31, 2013 in the notes to the consolidated financial statement under disclosure no. 43.
| Related parties | 2013 (adjusted) | |||
|---|---|---|---|---|
| TEUR Balance as of December 31 |
Earnings | Expenses | Receivables | Liabilities |
| Affiliated companies | 14 | 28 | 0 | 277 |
| Joint ventures | 16,161 | 13,263 | 38,271 | 22,439 |
| Associated enterprises | 909 | 2,750 | 592 | 63 |
| Related parties | 2013 (previous) | |||
|---|---|---|---|---|
| TEUR Balance as of December 31 |
Earnings | Expenses | Receivables | Liabilities |
| Affiliated companies | 19 | 31 | 3 | 224 |
| Joint ventures | 4,345 | 156 | 18,385 | 10,149 |
| Associated enterprises | 10,179 | 16,509 | 2,466 | 2,342 |
The composition of the Supervisory Board corresponds to that as of December 31, 2013, with the following exception: on May 30, 2014 Dr. h.c. Klaus Wedemeier, former mayor, was elected by the Annual Shareholders' Meeting as successor in the function of representative of the shareholders to Mr. Uwe Beckmeyer, who resigned from his office on the Supervisory Board, effective as of December 31, 2013. The election became effective as of the end of this Annual Shareholders' Meeting until the end of the Annual Shareholders' Meeting that will decide on discharge of the Supervisory Board for the 2017 financial year.
The composition of the Board of Management remained unchanged from December 31, 2013.
There have been no significant changes in lawsuits up to preparation of the interim financial statement.
There have been no transactions of special significance between the end of the first six months of 2014 and approval of the interim consolidated financial statement on August 26, 2014.
Bremen, August 26, 2014
BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877–
THE BOARD OF MANAGEMENT
To the best of our knowledge, and in accordance with the applicable reporting principles for interim consolidated financial reporting, the Interim Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group in accordance with German accepted accounting principles, and the Interim Management Report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Bremen, August 26, 2014
The Board of Management
Hartmut Mekelburg Emanuel Schiffer Andreas Wellbrock
Frank Dreeke Jens Bieniek Michael Blach
We have reviewed the condensed Interim Consolidated Financial Statement of BLG LOGISTICS prepared by BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– and BLG LOGISTICS GROUP AG & Co. KG, Bremen, consisting of the Income Statement, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement as well as selected explanatory disclosure notes, and the Interim Consolidated Management Report for the period from January 1 to June 30, 2014, which are parts of the Semiannual Report, in accordance with Section 37w of the Securities Trading Act (WpHG). The legal representatives of the company assume responsibility for preparation of the condensed Interim Consolidated Financial Statement in accordance with the IFRS for interim reporting, as they have to be applied in the EU, and the Interim Consolidated Management Report according to the provisions of the WpHG to be applied to interim consolidated management reports. Our function is to submit an auditor's review report regarding the condensed Interim Consolidated Financial Statement and the Interim Consolidated Management Report on the basis of the auditor's review conducted by us.
We have conducted our auditor's review of the condensed Interim Consolidated Financial Statement and the Interim Consolidated Management Report in accordance with the German principles for reviewing financial statements stipulated by the Institute of Auditors (IDW). According to these principles, the auditor's review is to be planned and conducted such that we can rule out with a certain degree of certainty after a critical evaluation that major aspects of the condensed Consolidated Financial Statement do not comply with the IFRS for interim reporting, as they have to be applied in the EU, and that major aspects of the Interim Consolidated Management Report do not comply with the provisions of the WpHG to be applied to interim consolidated management reports. An auditor's review is primarily restricted to questioning of employees of the companies and analytical evaluations and therefore does not offer the security provided by a financial statement audit. Since we have not conducted a financial statement audit in line with the order, we cannot submit an audit certificate and opinion.
On the basis of our auditor's review, we have not become aware of any facts or circumstances that might lead us to assume that major aspects of the condensed Interim Consolidated Financial Statement do not comply with the IFRS for interim reporting, as they have to be applied in the EU, and that major aspects of the Interim Consolidated Management Report do not comply with the provisions of the WpHG to be applied to interim consolidated management reports.
Bremen, August 27, 2014
Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft
Ludwig Hantke Auditor Auditor
| Financial calendar 2014 | |
|---|---|
| Interim Report January to June 2014 |
August 29, 2014 |
| Consolidated Interim Report January to June 2014 |
August 29, 2014 |
| Interim Report | |
| January to September 2014 | November 7, 2014 |
| Consolidated Interim Statement | |
| January to September 2014 | November 7, 2014 |
This Interim Report contains future-related statements that are based on current assessments of the Management on future developments. Such statements are subject to risks and uncertainties that lie outside the scope of control or precise assessment of BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877–, for example in connection with the future market environment and the economic conditional framework, the behavior of other market players, successful integration of new acquisitions and realization of expected synergy effects as well as measures taken by government agencies. If one of these or other uncertainty factors and imponderables should arise or should the assumptions on which these statements are based turn out to be incorrect, the actual results may differ significantly from the results explicitly specified or implicitly contained in these statements. BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– neither intends to update future-related statements nor does it assume any specific obligation to update such statements in order to adjust them to events or developments after the date of this report.
The Interim Report shall be submitted to the Bundesanzeiger (Company Register) electronically by the company on the basis of legal disclosure requirements.
For technical reasons (e.g. conversion of electronic formats) deviations may arise between the accounting documents contained in this Interim Report and those submitted to the Company Register. In this case the version submitted to the Company Register shall be considered the binding version.
BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– Präsident-Kennedy-Platz 1 28203 Bremen, Germany
www.ir.blg.de
Investor Relations Ina Oeing Lisa Boose
We will be glad to assist you:
Ina Oeing Tel.: +49 (0) 421 398 3385 Fax: +49 (0) 421 398 3233
BREMER LAGERHAUS-GESELLSCHAFT –Aktiengesellschaft von 1877– Präsident-Kennedy-Platz 1 28203 Bremen, Germany
www.blg.de
E-Mail: [email protected] Internet: www.ir.blg.de Fax: +49 (0) 421 398 3233 Interim Consolidated Report January to June 2014 Notes Interim Consolidated Report January to June 2014
www.blg.de
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