A N N U A L R E P O R T
2 0 1 4
OUR UNITS
U S A
Gastonia, NC
Sterling Heights, MI
Schaumburg, IL
E U R O P E
Luxembourg, Luxembourg
Koblenz, Germany
Derio, España
Poissy, France
Banbury, Great Britain
Torino, Italy
Brasov, Romania
N A F T A
N A F T A
35%*
[ €176.8 million ]
M E X I C O
Ramos Arizpe
Production Powerise
Production gas spring
Sales Office
Stabilus S.A.
* Revenue by region (location of Stabilus company)
B R A Z I L
Itajubá
C H I N A
Changzhou City
Shanghai
S O U T H K O R E A
Busan
Suwon
J A P A N
Yokohama
E U R O P E
53%*
[ €267.3 million ]
A S I A / P A C I F I C
A N D R O W
12%*
[ €63.2 million ]
N E W Z E A L A N D
Auckland
S I N G A P O R E
Singapore
A U S T R A L I A
Dingley
K E Y F I G U R E S
IN € MILLIONS
Revenue
EBITDA
Adjusted EBITDA
EBIT
Adjusted EBIT
2014
507.3
71.3
92.5
31.2
65.1
2013
CHANGE
% CHANGE
460.1
47.2
10.3%
75.9
87.1
35.2
59.1
(4.6)
(6.1)%
5.4
6.2%
(4.0)
(11.4)%
6.0
10.2%
Capital expenditure
(35.6)
(34.4)
(1.2)
3.5%
Adjusted operating cash flow before tax (AoCF)
Free cash flow (FCF)
EBITDA as % of revenue
Adjusted EBITDA as % of revenue
EBIT as % of revenue
Adjusted EBIT as % of revenue
Capital expenditure as % of revenue
AoCF as % of adjusted EBITDA
FCF as % of adjusted EBITDA
80.5
22.1
14.1%
18.2%
6.2%
12.8%
7.0%
87.0%
23.9%
43.9
20.5
36.6
83.4%
1.6
7.8%
16.5%
18.9%
7.7%
12.8%
7.5%
50.4%
23.5%
Revenue by markets
Revenue by region (location of Stabilus company)
5%
SWIVEL CHAIR
28%
INDUSTRIAL
17%
AUTOMOTIVE
POWERISE
12%
ASIA / PACIFIC
AND ROW
50%
AUTOMOTIVE
GAS SPRING
35%
NAFTA
53%
EUROPE
A N N U A L R E P O R T 2 0 1 4
A N N U A L R E P O R T
A N N U A L R E P O R T
2 0 1 4
H I D D E N C H A M P I O N
Gas struts, dampers, and electromechanical drives simplify an
enormous number of everyday manual tasks. Wherever you
find something that can be lifted or lowered, opened or closed
with ease, it’s probably thanks to a Stabilus product. These
products satisfy the growing demand for ergonomics in today’s
lifestyles. Certainly by the time of the IPO in May 2014,
investors had identified the world market leader Stabilus as
a hidden champion.
A s a w o r l d m a r ke t l e a d e r f o r g a s s p r i n g s a n d d a m p e r s, w e
A s a w o r l d m a r ke t l e a d e r f o r g a s s p r i n g s a n d d a m p e r s, w e
h a v e d e m o n s t r a t e d o u r e x p e r t i s e f o r e i g h t d e c a d e s : I n t h e
h a v e d e m o n s t r a t e d o u r e x p e r t i s e f o r e i g h t d e c a d e s : I n t h e
a u t o m o t i v e i n d u s t r y , i n t h e f u r n i t u r e s e c t o r, i n h o u s e a n d
a u t o m o t i v e i n d u s t r y , i n t h e f u r n i t u r e s e c t o r, i n h o u s e a n d
0 1
A U T O M O T I V E
b u i l d i n g t e c h n o l o g y a n d e v e n i n m e d i c a l p r o d u c t s a s w e l l a s
b u i l d i n g t e c h n o l o g y a n d e v e n i n m e d i c a l p r o d u c t s a s w e l l a s
rehabi lita tio n te ch nolo gy. Our g as s p ri n g s, d a mp ers a n d el ectro
rehabi lita tio n te ch nolo gy. Our g as s p ri n g s, d a mp ers a n d el ectro
m e c h a n i c a l d r i v e s a l l o w y o u t o o p t i m i z e o p e n i n g , c l o s i n g ,
m e c h a n i c a l d r i v e s a l l o w y o u t o o p t i m i z e o p e n i n g , c l o s i n g ,
l i f t i n g , l o w e r i n g , d a m p i n g a n d a d j u s t i n g a c t i o n s.
l o w e r i n g , d a m p i n g a n d a d j u s t i n g a c t i o n s.
Th e s a t i s f a c t i o n o f o u r c u s t o m e r s i s o u r t o p p r i o r i t y . Th a t ‘ s
Th e s a t i s f a c t i o n o f o u r c u s t o m e r s i s o u r t o p p r i o r i t y . Th a t ‘ s
w h y w e s e t t h e h i g h e s t r e q u i r e m e n t s f o r t h e q u a l i t y o f o u r
w h y w e s e t t h e h i g h e s t r e q u i r e m e n t s f o r t h e q u a l i t y o f o u r
0 2
I N D U S T R I A L
p r o d u c t s, w h e t h e r t h e y a r e m a s s p r o d u c e d o r m a n u f a c t u r e d
p r o d u c t s, w h e t h e r t h e y a r e m a s s p r o d u c e d o r m a n u f a c t u r e d
i n s m a l l b a t c h e s. W e g u a r a n t e e t h e h i g h e s t s t a n d a r d f o r
i n s m a l l b a t c h e s. W e g u a r a n t e e t h e h i g h e s t s t a n d a r d f o r
o u r p r o d u c t s w o r l d w i d e.
P A G E 16
P A G E 20
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K E Y F I G U R E S
IN € MILLIONS
Revenue
EBITDA
Adjusted EBITDA
EBIT
Adjusted EBIT
2014
507.3
71.3
92.5
31.2
65.1
2013
CHANGE
% CHANGE
460.1
47.2
10.3%
75.9
87.1
35.2
59.1
(4.6)
(6.1)%
5.4
6.2%
(4.0)
(11.4)%
6.0
10.2%
Capital expenditure
(35.6)
(34.4)
(1.2)
3.5%
Adjusted operating cash flow before tax (AoCF)
Free cash flow (FCF)
EBITDA as % of revenue
Adjusted EBITDA as % of revenue
EBIT as % of revenue
Adjusted EBIT as % of revenue
Capital expenditure as % of revenue
AoCF as % of adjusted EBITDA
FCF as % of adjusted EBITDA
80.5
22.1
14.1%
18.2%
6.2%
12.8%
7.0%
87.0%
23.9%
43.9
20.5
36.6
83.4%
1.6
7.8%
16.5%
18.9%
7.7%
12.8%
7.5%
50.4%
23.5%
Revenue by markets
Revenue by region (location of Stabilus company)
5%
SWIVEL CHAIR
28%
INDUSTRIAL
17%
AUTOMOTIVE
POWERISE
12%
ASIA / PACIFIC
AND ROW
50%
AUTOMOTIVE
GAS SPRING
35%
NAFTA
53%
EUROPE
A N N U A L R E P O R T 2 0 1 4
A N N U A L R E P O R T
2 0 1 4
A s a w o r l d m a r ke t l e a d e r f o r g a s s p r i n g s a n d d a m p e r s, w e
h a v e d e m o n s t r a t e d o u r e x p e r t i s e f o r e i g h t d e c a d e s : I n t h e
a u t o m o t i v e i n d u s t r y , i n t h e f u r n i t u r e s e c t o r, i n h o u s e a n d
b u i l d i n g t e c h n o l o g y a n d e v e n i n m e d i c a l p r o d u c t s a s w e l l a s
rehabi lita tio n te ch nolo gy. Our g as s p ri n g s, d a mp ers a n d el ectro
m e c h a n i c a l d r i v e s a l l o w y o u t o o p t i m i z e o p e n i n g , c l o s i n g ,
l i f t i n g , l o w e r i n g , d a m p i n g a n d a d j u s t i n g a c t i o n s.
Th e s a t i s f a c t i o n o f o u r c u s t o m e r s i s o u r t o p p r i o r i t y . Th a t ‘ s
w h y w e s e t t h e h i g h e s t r e q u i r e m e n t s f o r t h e q u a l i t y o f o u r
p r o d u c t s, w h e t h e r t h e y a r e m a s s p r o d u c e d o r m a n u f a c t u r e d
i n s m a l l b a t c h e s. W e g u a r a n t e e t h e h i g h e s t s t a n d a r d f o r
o u r p r o d u c t s w o r l d w i d e.
C O N T E N T
A
T O O U R S H A R E H O L D E R S
04
06
08
10
14
16
20
CEO Letter
International Management Team
Supervisory Board
Equity Story
Stabilus Share
Automotive
Industrial
B
G R O U P M A N A G E M E N T R E P O R T
27
27
27
28
33
34
35
38
39
41
41
General
Reorganization and IPO
Business and General Environment
Results of Operations
Development of Operating Segments
Financial Position
Liquidity
Risks and Opportunities
Corporate Governance
Subsequent Events
Outlook
C
F I N A N C I A L S T A T E M E N T S
45
46
48
49
50
116
117
118
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Responsibility Statement
Management and Supervisory Board of Stabilus S.A.
Independent Auditor’s Report
D
A D D I T I O N A L I N F O R M A T I O N
122
122
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Financial Calendar
Disclaimer
Information Resources
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01
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
P O W E R I S E
TO O U R
S H A R E H O L D E R S
POWERISE spindle drives are used for single
sided or doublesided application. They are mod
ular systems based on various standard compo
nents. The mechanical spring intergrated into
the spindle drive is the key element of the over
all system that provides the desired functions –
including comfortable manual operation. Opti
mized pitch and surface of the spindle make for
an almost silent movement. Stabilus offers the
spindle drive as compact axial parallel design or
as slim coaxial version.
A N N U A L R E P O R T 2 0 1 4
03
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CEO Letter
T O O U R S H A R E H O L D E R S
D i e t m a r S i e m s s e n
C h i e f E x e c u t i v e O f f i c e r
LETTER FROM
THE CHIEF EXECUTIVE OFFICER
Dear Shareholders, Customers, Business Partners, Employees,
Ladies and Gentlemen,
We have come to the end of a successful and eventful fiscal year during which we once again achieved significant
growth across all segments and markets. As a world market leader for gas springs, dampers and electromechanical
drives, we are firmly established on the market and can look back with pride on a history dating back eighty years.
The 2014 fiscal year now marks our third successive record year. For the first time, we exceeded the sales threshold
of €500 million by a margin of €7 million. As well as achieving record sales, we have laid important foundations
for our future growth: With newly acquired major customers and orders from Asia, Europe and the US, the construction
of a new production plant for our industrial products in the rapidly expanding Chinese market and the expansion
of our plant in Romania, as well as by almost doubling our capacity in the automotive sector in China. We are also
experiencing strong demand around the world for our electromechanical Powerise systems that automatically
open and close automobile trunk lids and tailgates.
Our IPO in May 2014 was a major milestone. This represents an important step for Stabilus and its employees.
Longterm access to the capital markets will enable us to accelerate our organic growth, as well as allowing us to
think about external growth. At this point, I would like to extend a special welcome to our new shareholders,
who have decided to invest in a rapidly expanding and profitable company that offers significant potential. This is
because Stabilus will continue to benefit from the pronounced trend towards greater comfort and optimum ergo
nomics in all areas of life, which is being driven by demographic developments and the increasing importance of
the highly comfortoriented markets of Asia.
04
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
CEO L etter
Overall, the 2014 fiscal year saw us produce a record 138 million gas springs and dampers (previous year: 132 million
units) as well as 2.2 million Powerise systems – up from 1.2 million units in the previous year. Accordingly,
our sales increased by 10% yearonyear, from €460.1 million to €507.3 million. The strongest driver of growth
in the automotive business was the Powerise sector, where sales soared by 55% to €85.8 million. As a result
of this encouraging growth across all business areas, we even slightly outperformed our sales forecast of €505 million
for the 2014 fiscal year. In geographical terms, our strongest growth was achieved in the US, but we also
increased our sales in Asia and Europe. This significant rise in sales was also reflected in our earnings situation.
Adjusted EBIT increased by 10%, from €59.1 million in the previous year to €65.1 million, resulting in net income
for the year of €10.0 million.
We are very satisfied with our performance in the 2014 fiscal year. At the same time, the prospects for our business
also remain exceptionally promising. In light of these circumstances, we are confident that we can grow faster
than the market in the years ahead. This is because the everincreasing comfort requirements among customers
will lead to the far more widespread use of gas springs, dampers and electromechanical lid drives. As a global
market leader for these products, we will benefit from this trend to an aboveaverage extent and will continue to
invest systematically in realizing our growth potential in the coming fiscal year.
Our innovation process is also bearing fruit: New products and applications are already on the market and are
helping to support our continued growth.
For the growth rate of revenue, adjusted EBITDA and adjusted EBIT in fiscal year 2015, we target to achieve a
similar growth rate as achieved for the fiscal year 2014. We will focus in particular on the continued development
of the rapidly growing Asian market and the ongoing market penetration of our Powerise systems.
I would like to express my gratitude to the more than 4,000 Stabilus employees around the world for their continuing
excellent contribution to the success of our company, to our business partners for the close and, in many cases long
standing working relationships we enjoy, to our customers for their loyalty, and to our shareholders for their
confidence in Stabilus.
We very much look forward to sharing yet another fiscal year of success and strong growth with you!
Yours sincerely,
D i e t m a r S i e m s s e n
C h i e f E x e c u t i v e O f f i c e r
A N N U A L R E P O R T 2 0 1 4
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In ter national Management Team
T O O U R S H A R E H O L D E R S
INTERNATIONAL
MANAGEMENT
TEAM
03
05
07
06
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01
02
0 1
0 3
0 5
0 7
B a l m e r t , J o a c h i m
H i n c k , M i c h a e l
S a n d e r, K a r s t e n
H o s a n , H a n s - J o s e f
V i c e P r e s i d e n t Q u a l i t y
C o u n t r y H e a d J a p a n
V i c e P r e s i d e n t B u s i n e s s
C h i e f Te c h n i c a l O f f i c e r /
M a n a g e m e n t
U n i t A u t o m o t i v e
V i c e P r e s i d e n t B u s i n e s s
U n i t S w i v e l C h a i r
0 2
0 4
0 6
L e e, J o o n g - H o ( J a m e s )
T i a n , X u e f e n g ( A l e x )
S i e m s s e n , D i e t m a r
C o u n t r y H e a d Ko r e a
C o u n t r y H e a d C h i n a
C h i e f E x e c u t i v e O f f i c e r
06
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
In ternatio nal Man ag ement Tea m
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1 0
1 2
1 4
S a b e t , D a v i d
K a d e n b a c h , E k k e h a r d
H a b a , A n t h o n y
W i l h e l m s, M a r k
V i c e P r e s i d e n t B u s i n e s s
V i c e P r e s i d e n t G l o b a l
R e g i o n a l H e a d
C h i e f F i n a n c i a l O f f i c e r
U n i t Po w e r i s e
P u r c h a s i n g
N A F TA
0 9
1 1
1 3
K r ö t z , A n s g a r
H u b e r, R a l p h
W i d m e r, M a r t i n a
C h i e f O p e r a t i o n s O f f i c e r
V i c e P r e s i d e n t B u s i n e s s
V i c e P r e s i d e n t G l o b a l
U n i t I n d u s t r i a l
H R
A N N U A L R E P O R T 2 0 1 4
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Supervisory Board
T O O U R S H A R E H O L D E R S
U d o S t a r k
C h a i r m a n
REPORT OF THE
REPORT OF THE
SUPERVISORY BOARD
SUPERVISORY BOARD
Dear Shareholders,
Since its establishment on May 5, 2014, the Supervisory Board of Stabilus S.A. performed its tasks and monitored
the management activities of the Board of Management in accordance with legal requirements and the articles
of association of Stabilus S.A. The Board of Management and the Supervisory Board remained in close and regular
contact. The Supervisory Board regularly advised the Board of Management in regards to strategic and operational
decisions as well as governance topics and decided on requests for approval presented by the Board of Management.
Stabilus S.A. is the legal successor of Servus Holdco S.à r.l. which changed its company name and its legal form on
May 5, 2014. On the same date, the Supervisory Board was established and the present members of the Supervisory
Board were appointed. Subsequently, the Supervisory Board approved appointment of the present members of the
Board of Management and resolved to set up an Audit Committee and a Remuneration Committee.
On May 23, 2014, Stabilus S.A. concluded its public offering and admission of trading of its shares at the Frankfurt
Stock Exchange which had been discussed with and approved by the Supervisory Board.
Cooperation with the Board of Management
The Board of Management reported regularly, promptly and extensively in verbal and written form to the
Supervisory Board regarding the position and performance of the company and the Stabilus Group. Furthermore,
the Board of Management informed the Supervisory Board on a regular basis concerning the future business
policy, including the strategic and organizational direction. Between the Supervisory Board meetings, the CEO and
the CFO kept the Chairman of the Supervisory Board informed about new developments.
In each of the Supervisory Board meetings, of which there were 5 in total since the establishment of the Supervisory
Board, the Board of Management reported the commercial position of the company and key financial data.
08
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
Sup erviso ry Bo ard
Major investments of the group companies, in particular investments for machines and other equipment, were
presented to the Supervisory Board and the Board of Management applied for respective approvals if required. The
investment decisions particularly focused on further improvements of the German production facility's competitive
position and business expansion in Asia.
The Board of Management reported about quality management and other operational topics related to Stabilus
products as well as other topics of particular interest. In addition, the Board of Management conferred with the
Supervisory Board in regards to the Group's financial situation, the optimization of its financial structure and the
reduction of the company's interest charges.
The Supervisory Board and the Audit Committee regularly examined the risk position of the Stabilus Group and
the further development of the systems and procedures for controlling and reducing risks. The Audit Committee
reviewed the Group's compliance organization and initiated further improvement.
The Supervisory Board and the Board of Management assessed in particular the effects of eventual downturn
scenarios in the various markets of the company and adequate measures which then might be required.
Drawing up of the Consolidated Financial Statements
The Supervisory Board examined the consolidated financial statements and the consolidated management report
for the financial year ending on September 30, 2014. Representatives of the auditor KPMG Luxembourg S.à r.l.
attended the meetings of the Audit Committee and the Supervisory Board on December 1, 2014 at which the
consolidated financial statements were examined. The representatives of the auditor reported extensively on
their findings, provided a written presentation and were available to give additional explanations and opinions.
The Supervisory Board did not raise any objections to the consolidated financial statements drawn up by the
Board of Management for the financial year ending on September 30, 2014 and to the auditors’ presentation.
According to the proposal of the Audit Committee, the Supervisory Board agreed to the proposal of the Board of
Management to approve the consolidated financial statements. The auditor issued an unqualified audit opinion
on December 1, 2014.
On behalf of the Supervisory Board, I want to thank the Board of Management for the open and cooperative
exchanges and collaboration during the year, the Stabilus employees for their excellent contributions to the com
pany’s success as well as our shareholders for the trust they place in Stabilus.
Luxembourg, December1, 2014
On behalf of the Supervisory Board of Stabilus S.A.
U d o S t a r k
C h a i r m a n o f t h e S u p e r v i s o r y B o a r d
A N N U A L R E P O R T 2 0 1 4
09
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L E A D E R S H I P
M A N A G E M E N T
1
D I V E R S I F I C AT I O N
2
5
4
3
P E R F O R M A N C E
G R O W T H
10
ANNUAL REPORT 2014Equity Story TO OUR SHAREHOLDERS A H I G H LY AT T R A C T I V E
I N V E S T M E N T O P P O R T U N I T Y
Attractive growth outlook and strong margin profile
secured by a clear global leadership position.
L E A D E R S H I P
1
~15 x
~3 x
Larger market share
than the closest com-
petitor in automotive
Larger market share
than second player in
industrial
Global scale combined
with technology and
quality leadership create
high barriers to entry
>2,500
1/1
50 /50
D I V E R S I F I C AT I O N Well-diversified cus-
tomer base (~100 cus-
tomers in automotive
and ~2,500 in indus-
trial)
7%
Average revenue
growth1
2
G R O W T H
3
“In the region, for the
region” (1 highly auto-
mated and 1 semi-auto-
mated gas spring plant
per region)
~50% / ~50% gross
margin contribution
from both industrial and
automotive
55%
Increasing comfort
requirements particu-
larly in Asia
Increasing preference
for large tailgate cars
worldwide
Revenue growth rate in
Powerise business in FY
2014
12%
11%
P E R F O R M A N C E
Adjusted EBIT margin2
Strong cash flow gener-
ation (11% FCF yield3)
and solid balance sheet
4
M A N A G E M E N T
Long standing experi-
ence with strong track
record
5
Re-ignited growth by
strengthening focus on
emerging markets,
industrial customers
and new applications
Improved cost structure
by increasing flexibility
of workforce and fur-
ther globalizing foot-
print
Further technological
and cost breakthroughs
in Powerise
¹ CAGR for FY2011–14.
² Average for FY2011–14.
3 Average FCF yield defined as (adjusted EBITDA-capex)/revenue, FY2011-14.
11
ANNUAL REPORT 2014 Equity StoryTO OUR SHAREHOLDERSMANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDCB I N T E R V I E W W I T H D I E T M A R S I E M S S E N , C E O
STABILUS – THE
HIDDEN CHAMPION
F o l l o w i n g i t s I P O i n M a y 2 014 , a n a l y s t s a n d
i n v e s t o r s i d e n t i f i e d S t a b i l u s a s a h i d d e n
c h a m p i o n . T h e s u c c e s s f u l m a r ke t d é b u t
f u l l y v i n d i c a t e d t h i s a s s e s s m e n t .
What sets the hidden champion Stabilus apart?
supplier, we are also responsible for a growing number
of applications, although we do not offer finished pro-
Siemssen: The answer to this question is both simple
ducts in the conventional sense. Our products perform
and complex. Stabilus products are not immediately
their functions more or less hidden from view, which is
visible to the user. Nevertheless, almost every one of us
why our brand name is not universally known. This fact,
experiences on a daily basis the ergonomic relief pro-
combined with our global presence and worldwide
vided by the gas springs, dampers or electromechanical
market leadership, is what makes us a “hidden cham-
drives manufactured by our company. Whether opening
pion”. This characterization is also supported by our
and closing the trunk of a car, stowing hand luggage
position as the sole supplier worldwide for the majority
on an aircraft, adjusting the backrest of a desk chair, or
of our products, which naturally gives us a high market
lying down on a height-adjustable treatment bed in a
share. In addition, our production volume is signifi-
doctor‘s surgery: Our products facilitate ease of opera-
cantly higher than that of the competition.
tion in all kinds of places. As a component and system
One of the mega-trends of our time is the grow-
ing demand for ergonomics, which is also a
consequence of longer human life expectancy.
What role does this trend play for Stabilus?
Siemssen: This is a trend from which we are benefiting
greatly. We all value the convenience of being able to
operate things effortlessly that would otherwise pres-
ent a challenge. Stabilus products simplify many every-
day manual tasks. Wherever something can be easily
lifted, lowered, opened or closed, it is highly likely that
a Stabilus product is responsible – be it a gas spring, a
damper or an electromechanical drive. And people of
all ages appreciate the comfort made possible by our
technologies. The functionality and ergonomics offered
by Stabilus products are perfectly in step with the
mega-trend of ergonomics.
» As a manufacturer of electromechanical drives, gas
springs and dampers, Stabilus plays an integral part
in everyday life.«
12
ANNUAL REPORT 2014Equity Story TO OUR SHAREHOLDERS With a commanding market share in the passen-
ger car segment and significant industrial busi-
ness, Stabilus is the clear global market leader.
Do you have any concerns that your market
could become saturated?
Siemssen: Despite the high market shares that both
business areas have already achieved, Stabilus con ti-
nues to expand in its markets. The high quality of our
products and our competitive edge are the factors
behind our expansion. Stabilus is an innovation-driven
company that is constantly coming up with new uses
and applications for its products. The number of gas
springs in commercial vehicles or agricultural ma chinery,
for example, is increasing steadily. The same applies to
the number of possible applications in the medical
field, in shipping, in the rail industry, etc. The trend for
making things easier to operate continues unabated,
with the result that we are seeing continued growth in
demand. In particular, markets such as Asia, particularly
China are also developing rapidly and hence offering
» Our products meet the growing demand for
ergonomics and comfort and accordingly one
of the mega trends of our time.«
significant potential.
How is Stabilus meeting this growth in demand
from an operational perspective?
The market for gas springs and electromechani-
cal drives is growing. Where do you see the
Siemssen: We are investing continuously in our pro-
great est future potential?
duction plants to ensure that we can satisfy the rising
order volumes with on-time delivery and the customary
Siemssen: Our electromechanical lid drive, the Power ise,
high quality level that is expected of Stabilus. For
is particularly interesting. It allowed us to switch from
example, we have extended our plants in Mexico and
being a component supplier to a system supplier for the
Romania in recent years and are currently working
automotive industry. One simple example of its func-
on the simultaneous expansion of the industry and auto-
tionality is the automatic operation of automobile tail-
motive segments in China. Our goal remains to gene rate
gates, which can be opened or closed at the press of
continued profitable growth in spite of these invest-
a button thanks to the Powerise drive. This simplifies the
ments. Wherever we have a presence, we manufacture
familiar firm hand grip that was required in the past
in the region for the region, including local sourc ing where
and prevents the need to handle a dirty or wet tailgate.
possible. With locations on almost every continent, our
More and more manufacturers are offering their cus-
production and sales architecture effectively covers our
tomers this option in a growing number of vehicle
worldwide sales and procurement markets.
models. Whereas the automatic tailgate was previously
only available on luxury cars, it is now also offered in
mass-market models. These developments represent yet
another growth driver for Stabilus. We are also working
intensively on new potential applications for Powerise
technology in industry.
13
ANNUAL REPORT 2014 Equity StoryTO OUR SHAREHOLDERSMANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDCB Stabilus Sh are
STABILUS SHARE
Successful IPO on May 23, 2014
Inclusion in the SDAX increases the international visibility
of the Stabilus Group
Strong performance of the share following the IPO
On May 23, 2014, Stabilus S.A. was listed in the Prime
as of September 30, 2014. These shares were subject
Standard of the Frankfurt Stock Exchange’s regulated
to a lock-up period of six months after May 27, 2014.
market. Shares of the company were offered to the
The members of the Management Board also committed
public in Germany and placed privately with institu-
themselves to comply with market protection agree-
tional investors in certain jurisdictions outside Germany
ments and limitations on disposal (lock-up) for a period
between May 9, 2014 and May 22, 2014. The price
of twelve months.
range was set between €19 and €25 per share. Shares
were allocated at €21.50. Stabilus S.A.’s IPO was over-
According to the voting rights notifications as of Septem-
subscribed multiple times at the issue price. The first
ber 30, 2014 further 5.65% were held by J.P. Morgan
trading price was €22.75. In the IPO 12,157,335 bearer
Chase & Co., 5.60% by Pelham Capital and 5.01% by
shares with a nominal value of €0.01 each were
Mondrian Investment Partners. The Management and
placed; thereof 9,134,079 shares were placed by the
Supervisory Board held approximately 1% of Stabilus
selling shareholder Servus Group HoldCo II S.à r.l. and
shares. These shareholdings are included in the free float.
3,023,256 new shares were issued.
As of September 30, 2014, the share price amouted to
Following the Company’s IPO, the free float amounted
€24.70. With a gain of almost 9% since May 23, 2014,
to 58.7%, representing 12,157,335 shares out of a
Stabilus shares were able to substantially outperfom
total capital stock of 20,723,256 shares. The remainder
most stock market indices including SDAX, DAXsector
of 41.3% or 8,565,921 was still in the possession of
All Automobile and DAXsector Industrial.
the selling shareholder Servus Group HoldCo II S.à r.l.
Shareholder Structure
in % as of September 30, 2014
41.3%
Servus Group
HoldCo II S.à r.l.
14
SDAX
Effective September 22, 2014, the shares of
Stabilus S.A. have been included in the German
SDAX index by Deutsche Börse AG. This is testa-
ment to the high liquidity of the Stabilus shares
and will further increase the company’s interna-
tional visibility.
58.7%
Free float
ANNUAL REPORT 2014TO OUR SHAREHOLDERS Share price performance
Data in per cent for May 2014 to September 2014
First trading day:
May 23, 2014 (€22.75)
Stab ilus Share
Closing price:
September 30, 2014 (€24.70)
15%
10%
5%
0%
– 5%
– 10%
–15%
May 2014
Jun 2014
Jul 2014
Aug 2014
Sep 2014
Stabilus
SDAX (Price index)
DAXsector Industrial (Price index)
DAXsector All Automobile (Price index)
IPO General Data
Ticker symbol
ISIN
STM
LU1066226637
German securities code (WKN)
A113Q5
Stock exchange
Frankfurt Stock Exchange
Market segment /
Transparency Standard
Regulated market
(Prime Standard)
Type of issue
Offering period
Price range
Subscription price
First trading day
First price
Issue volume
(number of shares)
Issue volume
(in €)
Underwriter
Public offering of shares in Germany and private placements in certain jurisdictions outside Germany
(i) May 12, 2014 - May 22, 2014 for retail investors
(ii) May 9 , 2014 - May 22, 2014 for institutional investors
€19.00 – €25.00
€21.50
May 23, 2014
€22.75
12,157,335 shares
thereof capital increase (new shares): 3,023,256 shares
thereof secondary placement incl. executed greenshoe option (existing shares): 9,134,079 shares
€261,382,702.50
thereof capital increase (new shares): €65,000,004.00
thereof secondary placement incl. executed greenshoe option (existing shares): €196,382,698.50
(i) Joint Global Coordinators & Joint Bookrunners: Commerzbank, J. P. Morgan
(ii) Co-Lead Managers: Société Générale Corporate & Investment Banking, UniCredit Bank AG
Free float after IPO
58.67%
Lock-up
(i) Present members of the Management Board: 12 months
(ii) Servus Group HoldCo II S.à r.l.: 6 months
15
ANNUAL REPORT 2014TO OUR SHAREHOLDERSMANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATION
Au tom otive
T O O U R S H A R E H O L D E R S
A U T O M O T I V E
T H E F U T U R E
O F C O M F O R T
G a s s p r i n g s , d a m p e r s a n d e l e c t r o m e c h a n i c a l
d r i v e s a r e n o w i n t e g r a l c o m p o n e n t s o f e v e r y
a u t o m o b i l e .
16
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
A utom ot ive
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A N N U A L R E P O R T 2 0 1 4
17
Au tom otive
A N U N S E R E A K T I O N Ä R E
A U TO M OT I V E
St a b i l u s i s a s u p p l i e r t o o v e r 10 0 a u t o b r a n d s
w o r l d w i d e . O u r p r o d u c t s f e a t u r e i n n u m e r o u s
a p p l i c a t i o n s i n p a s s e n g e r c a r s .
E N G I N E H O O D
High performance gas
spring to help opening
and closing the hood
S E AT A D J U S T M E N T
Gas spring that controls
motion, lifts, lowers and
balances
D O O R S TO P
Gas spring that allowes dors
to be held open at any position
16
A N U N S E R E A K T I O N Ä R E
A utom ot ive
G U L LW I N G D O O R
Gas spring that eases the
handling of the doors
Gas spring that controls
motion, lifts, lowers and
balances
C O N V E R T I B L E TO P
Gas spring controls
the mechanism of the
foldable roof
B A C K R E S T A D J U S T M E N T
Gas spring that eases folding
down the back rest
TA I L G AT E
Hydraulic damper that
provides safe and easy
tailgate opening
B O OT L I D
Automatic lid motor for
automatic opening and
closing of trunk lids and
tailgates
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Au tom otive
A N U N S E R E A K T I O N Ä R E
P O W E R I S E
T h e s t r o n g e s t g r o w t h d r i v e r s in t h e
a u t o m o t i v e b u s i n e s s a r e S t a b i l u s
e l e c t r o m e c h a n i c a l d r i v e s .
T R U N K
With the Powerise systems from Stabilus,
the trunk will open and close by remote
control within seconds. It can also be held
at any position in between.
Powerise
The demand for Powerise has more than
tripled within the last three years
16
T O O U R S H A R E H O L D E R S
A utom ot ive
G L O B A L M A R K E T S H A R E
Stabilus has an outstanding market share
in gas springs and a strong growing market
share in Powerise drives.
G E S C H Ä F T S B E R I C H T 2 0 1 4
17
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C O M P O N E N T S U P P L I E R A N D
S YS T E M PA R T N E R TO T H E
A U TO M OT I V E I N D U S T RY
G a s s p r i n g s , d a m p e r s a n d
P o w e r i s e s y s t e m s : S t a b i l u s
p r o d u c t s i m p r o v e e r g o n o m i c s
a n d b r i n g c o m f o r t t o p a s -
s e n g e r c a r s
0 2
The Stabilus story began 80 years ago with the
Throughout the automotive market, there is a growing
production of accessory parts for automobiles.
trend towards using gas springs in the most diverse
A lot has changed since then, but one thing is
areas of passenger cars. Consequently, the number of
more true today than ever: Stabilus is an inte-
gas springs fitted to some models has more than dou-
gral part of every passenger car. As a supplier to
bled over the last few years. Whereas gas springs were
over 100 auto brands around the world and
previously primarily used for tailgates, they are now
with a formidable market share, Stabilus is an
being fitted in areas such as the hood, the doors, the
undisputed global market leader for gas springs
seats, and other applications.
and dampers.
In light of current market requirements, our electrome-
chanical Powerise drive is particularly interesting. With
the product family of the same name, Stabilus moved
0 1
from being a component supplier to a system supplier
for the automotive industry. Powerise drives allow the
trunk or tailgate of a passenger car to be opened and
closed electrically at the press of a button. A growing
number of manufacturers offers customers this option
in their vehicle models. Up until a few years ago, auto-
matic tailgates were the preserve of high-end luxury
cars. In recent years, however, they have also been
introduced in mid-range models for the mass market.
Car drivers from all over the world are demanding
ever-increasing levels of comfort and ease of use. For
18
ANNUAL REPORT 2014TO OUR SHAREHOLDERS A utom ot ive
0 3
this reason, the coming years will see electromechani-
cal tailgate drives make further inroads into the automo-
bile market.
For Stabilus, the broadening of the application areas for
gas springs and Powerise systems in automobiles offers
significant scope for growth which it intends to lever-
age over the coming years.
In addition to its expertise for products and their appli-
cations, it is expertise in the production process that
sets Stabilus apart from the competition. Production
machinery and systems are developed and, to a large
extent, manufactured in-house. Stabilus uses these
systems to manufacture quality parts that guarantee
easy and reliable movement and outstanding damping.
In addition to manufacturing products of outstanding
quality, Stabilus is on hand to support its customers
from the design phase and throughout the develop-
ment process all the way to series production. With a
presence in most regions of the global automotive in-
dustry and an extensive network of local sales offices,
Stabilus guarantees the optimum integration of its gas
springs, dampers, and Powerise systems in the respec-
tive end products.
0 1
0 2
0 3
Development and design is
performed using CAD systems.
Powerise systems consist of sin-
gle-sided or double-sided drives.
As a partner to the auto industry,
Stabilus cooperates with manu-
facturers’ development teams to
create perfectly integrated products.
0 4
Stabilus products increase the
ergonomics in the passenger cabin.
0 4
19
ANNUAL REPORT 2014TO OUR SHAREHOLDERSMANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDCB
In dus trial
T O O U R S H A R E H O L D E R S
I N D U S T R I A L
F O R M O R E
S A F E T Y
T h e i n s t a l l a t i o n o f g a s s p r i n g s , d a m p e r s
o r e l e c t r o m e c h a n i c a l d r i v e s e n s u r e s s i m p l e
a n d e r g o n o m i c o p e r a t i o n i n a w i d e r a n g e
o f a p p l i c a t i o n s .
20
A N N U A L R E P O R T 2 0 1 4
A N N U A L R E P O R T 2 0 1 4
T O O U R S H A R E H O L D E R S
In dustri al
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A N N U A L R E P O R T 2 0 1 4
21
In dus trial
A N U N S E R E A K T I O N Ä R E
Wherever something in the home can be
lifted or lowered, opened or closed with ease,
it’s probably thanks to a Stabilus gas spring
D O M E S T I C
E N G I N E E R I N G
Protective hoods and flaps are safely
opened with gas springs
I N D U S T R I A L
F O R M O R E
S A F E T Y
T h e i n s t a l l a t i o n o f g a s s p r i n g s , d a m p e r s
R A I L
o r e l e c t r o m e c h a n i c a l d r i v e s e n s u r e s s i m p l e
Gas springs and dampers can be
found in rails, maintenance
a n d e r g o n o m i c o p e r a t i o n i n a w i d e r a n g e
hatches and passenger seats
o f a p p l i c a t i o n s .
C O N S T R U C T I O N
Stabilus products make hoods, doors,
seats and steering columns easier
to operate
Gas springs and dampers are fitted
to flaps, drivers’ seats, windows
and doors.
T R U C K / B U S
20
A N U N S E R E A K T I O N Ä R E
T O O U R S H A R E H O L D E R S
In dustri al
I N D U S T R I A L
Stabilus products have over 1,000 possible uses
and are an integral part of ergonomically optimized
applications.
A G R I C U LT U R E
In windows, doors, flaps, and
hoods – Stabilus plays an
indispensable role
M E D I C I N E
The use of gas springs in beds,
treatment beds and operating tables
enhances their safety and ease of use
AV I AT I O N
On aircraft, gas springs are built
into seats and overhead luggage
compartments
Corrosion-resistant stainless steel
gas springs are used in various flaps
M A R I T I M E
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In dus trial
S W I V E L C H A I R
T h e e r g o n o m i c s a n d l o a d -
b e a r i n g r e q u i r e m e n t s o f o f f i c e
c h a i r s a r e p a r t i c u l a r l y h i g h .
S W I V E L C H A I R
Gas springs enable convenient
and safe height adjustment as
well as variable manual adjust-
ment of the backrest and seat tilt.
I N D U S T R I A L
F O R M O R E
S A F E T Y
T h e i n s t a l l a t i o n o f g a s s p r i n g s , d a m p e r s
o r e l e c t r o m e c h a n i c a l d r i v e s e n s u r e s s i m p l e
a n d e r g o n o m i c o p e r a t i o n i n a w i d e r a n g e
o f a p p l i c a t i o n s .
20
T O O U R S H A R E H O L D E R S
In dustri al
A P P L I C AT I O N S
More than 2,500 customers from a wide
range of industrial sectors use gas springs
and dampers in over 1,000 applications.
A N N U A L R E P O R T 2 0 1 4
21
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0 1
C U S TO M I Z E D
PRO DUCT SOLUTIONS
F O R A W I D E R A N G E
O F S E C TO R S
From transpor t to of fice chairs, from house-
holds to hospitals: Stabilus plays a key role
in vir tually ever y area of life
Stabilus products are an integral part of everyday
Stabilus products are used wherever things need to be
life and are used in a wide range of industries. In
lifted or lowered, opened or closed. In many such cases,
the industrial sector alone, over 2,500 customers
the installation of gas springs, dampers or electrome-
rely on Stabilus gas springs and dampers – and
chanical drives ensures simple and ergonomic operation.
the number is rising. Increasing demands in terms
of ergonomics are a direct consequence of longer
With over 1,000 possible applications across various
human life expectancy. Stabilus offers the right
areas of industry, such as aerospace, mechanical engi-
products for this mega-trend, enabling seemingly
neering, medical and commercial vehicle technology,
challenging tasks to be carried out effortlessly.
and furniture design, the range of uses is vast. Whether
stowing hand luggage on an aircraft or adjusting the
seat, using a height-adjustable treatment bed or sit-
ting in a wheelchair in a doctor’s surgery: Gas springs,
dampers and electromechanical drives make things
easier. As a component and system supplier, Stabilus
is responsible for a growing number of ergonomically
optimized applications.
One of the key factors in ensuring that gas springs
perform to their full ergonomic potential in everyday
use in the most diverse applications is a development
process that reflects the specific application require-
ments of the end products. In order to maximize the
benefits to the user, a high level of product diversity
is required. For this reason, Stabilus offers gas springs
and dampers in many variants that can be customized
to the conditions needed for the customer’s end product.
2,500
In the industrial sector alone,
over 2,500 customers use gas
springs and dampers in their
products.
22
ANNUAL REPORT 2014Industrial TO OUR SHAREHOLDERS 0 2
0 1
0 2
Stabilus gas springs generally perform their duties
hidden from view. They simplify the operation of many
everyday items.
Yet another example of gas springs in action:
The colorful AIDA logo on the smokestack is tilted with
the help of gas springs during cleaning work.
1,000
With over 1,000 possible appli-
cations across various industrial
sectors, such as aerospace,
mechanical engineering, medical
and commercial vehicle tech-
nology, and furniture design,
the range of applications is vast.
23
Another important prerequisite for lasting customer
satisfaction is the excellent quality of the series prod-
uct. With production machinery that is developed
and manufactured in-house, Stabilus guarantees con-
sistent quality at the very highest standards worldwide.
One example of development reflecting the use of the
end product is gas springs for swivel chairs. Stabilus
is the only manufacturer outside Asia to design these
springs specially for this purpose. This is the only way
to satisfy the highest requirements in terms of ergonomics
and the load-bearing capacity of office chairs while also
allowing flexible adjustments to suit each user.
Stabilus maintains a global presence with eleven
plants in nine countries on almost every continent.
The company primarily manufactures in direct regional
proximity to customers. In addition to direct channels
of communication and prompt reaction times, this
strategy ensures that customers have a local contact
partner who knows their sales, understands their
specific needs and can act accordingly.
ANNUAL REPORT 2014 IndustrialTO OUR SHAREHOLDERSMANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDCB G R O U P M A N A G E M E N T R E P O R T
S TA B - O - S H O C
G R O U P
M A N A G E M E N T
R E P O R T
The STAB-O-SHOC TA series from
STABILUS was originally developed
as steering dampers. But due to
their flexibility and ruggedness, these
dampers have proven themselves as
reliable partners outside of vehicle
construction wherever vibrations had
to be reduced and safely dampened.
A N N U A L R E P O R T 2 0 1 4
25
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Contents
G R O U P M A N A G E M E N T R E P O R T
G R O U P M A N A G E M E N T R E P O R T
as of and for the fiscal year ended September 30, 2014
2 7
G E N E R A L
3 5
L I Q U I D I T Y
2 7
R E O R G A N I Z A T I O N A N D I P O
3 8
R I S K S A N D O P P O R T U N I T I E S
2 7
B U S I N E S S A N D G E N E R A L E N V I R O N M E N T
3 9
C O R P O R A T E G O V E R N A N C E
2 8
R E S U L T S O F O P E R A T I O N S
4 1
S U B S E Q U E N T E V E N T S
3 3
D E V E L O P M E N T O F O P E R A T I N G S E G M E N T S
4 1
O U T L O O K
3 4
F I N A N C I A L P O S I T I O N
26
A N N U A L R E P O R T 2 0 1 4
G e n e r a l
R e o r g a n i z a t i o n a n d I P O
B u s i n e s s a n d g e n e r a l e n v i r o n m e n t
G E N E R A L
9,134,079 shares were placed by the selling shareholder Servus
Group HoldCo II S.à r.l. and 3,023,256 new shares were issued.
The parent company of the Luxembourg based Stabilus Group is
Following the Company’s IPO, the free float amounted to 58.7%,
Stabilus S.A. (Stabilus).
representing 12,157,335 shares out of a total capital stock of
20,723,256 shares. The remainder of 41.3% or 8,565,921 is still in
Stabilus Group’s operating entities typically use the brand name
the possession of the former majority shareholder Servus Group
“Stabilus” in their registered name. The Group operates in three
HoldCo II S.à r.l. These shares are subject to a lock-up period of six
regions with its subsidiaries. These regions are Europe (Luxem-
months after May 27, 2014. The members of the Management
bourg, Germany, France, Italy, Romania, Spain, Switzerland and
Board also committed themselves to comply with market protection
United Kingdom), NAFTA (United States and Mexico) and Asia /
agreements and limitations on disposal (lock-up) for a period of
Pacific and rest of world (RoW) (China, South Korea, Japan, Aus-
twelve months for shares purchased at the IPO.
tralia, Brazil, New Zealand).
The Group used the proceeds from the issuance of new shares
The Stabilus Group is a leading manufacturer of gas springs and
amounting (before deduction of transaction costs) to €65.0 million
dampers as well as electrical lifting equipment. The products are
to partially redeem its senior secured notes. In addition, prior to
used in a wide range of applications in the automotive and the
the IPO and immediately following the IPO, the Group structure
industrial sector, as well as in many furniture applications. Typically
was reorganized (hereinafter also referred to as “IPO reorganiza-
the products are used to aid the lifting and lowering or dampening
tion”). As a result, the equity upside-sharing instruments (EUSIs)
of movements. As a world market leader for gas springs, the Group
and the upstream loan to the selling shareholder were extinguished
ships to all key vehicle producers. Various Tier 1 suppliers of the
and will no longer be recognized on the Group’s balance sheet.
global car industry further diversify the Group’s customer base.
R E O R G A N I Z AT I O N
A N D I P O
BUSINESS AND GENERAL
ENVIRONMENT
Macroeconomic development
Following the shareholder resolution dated May 5, 2014, the cor-
porate form and the name of the Company were changed from
In calendar year 2013, the growth in global gross domestic product
“Servus HoldCo S.à r.l.” to “Stabilus S.A.”
(GDP) was with 3.3% at about 2012 level (calendar year 2012:
Since September 2014 Stabilus S.A. is listed in the SDAX of the
International Monetary Fund (IMF) reduced its growth forecast for
Frankfurt Stock Exchange. At the Initial Public Offering (IPO) in May,
the global economy from 3.4% to 3.3% for the current calendar
Stabilus S.A. was listed at the Prime Standard of the Frankfurt
year 2014. The forecast for 2015 was reduced by 0.2 percentage
3.2%). In its latest October 2014 World Economic Outlook, the
Stock Exchange’s regulated market. Shares of the Company were
points to 3.8%.
offered to the public in Germany and placed privately with institu-
tional investors in certain jurisdictions outside Germany between
The IMF still believes that there are considerable risks in the high
May 9, 2014 and May 22, 2014. The price range was set between
debt levels of many so called “advanced” economies. Structural
€19 and €25 per share. Shares were allocated at €21.50. Stabilus
reforms continue to be needed to effectively counter the risks.
S.A.’s IPO was oversubscribed multiple times at the issue price.
The first trading price was €22.75. In the IPO, 12,157,335 bearer
shares with a nominal value of €0.01 each were placed; thereof
27
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Resu lts of operatio ns
Development of vehicle markets
calendar year 2012. About 80% of this increase relates to China,
but also the development of production volumes in NAFTA contin-
A very important factor for our revenues in the automotive and
ues to be strongly positive. The number of light vehicles produced
industrial market is global production volumes of newly manufac-
in Europe slightly improved in calendar year 2013.
tured light vehicles which comprise passenger cars, station wagons,
SUVs, vans and light commercial vehicles weighing less than six tons.
For calendar year 2014, the total worldwide production of light
The global demand for vehicles developed positively in the last
total increase by ca. 3% compared to 2013 will result from the
twelve months. Following the global increase in demand for
positive developments in NAFTA (around +5%), Asia (around +4%)
passenger cars, station wagons and light commercial vehicles, the
and Europe (around +3%), while the production volumes in other
number of vehicles produced in calendar year 2013 increased to
markets are expected to shrink by around (5)%.
vehicles in 2014 is expected to amount up to 87 million units. The
around 85 million units, up by ca. 4% from the 82 million units in
RESULTS OF OPERATIONS
The table below sets out Stabilus Group’s consolidated income state-
ment for the fiscal year 2014 in comparison to the fiscal year 2013:
Year ended Sept 30,
2014
507.3
(387.7)
119.6
(20.3)
(38.7)
(32.6)
6.0
(2.9)
31.2
17.5
(38.8)
9.9
0.1
10.0
2013
460.1
(349.7)
110.4
(17.6)
(38.9)
(21.2)
6.1
(3.6)
35.2
5.4
(46.5)
(5.9)
(10.1)
(16.0)
T _ 001
% change
10.3%
10.9%
8.3%
15.3%
(0.5)%
53.8%
(1.6)%
(19.4)%
(11.4)%
>100.0%
(16.6)%
<(100.0)%
<(100.0)%
<(100.0)%
change
47.2
(38.0)
9.2
(2.7)
0.2
(11.4)
(0.1)
0.7
(4.0)
12.1
7.7
15.8
10.2
26.0
Income statement
I N € M I L L I O N S
Revenue
Cost of sales
Gross profit
Research and development expenses
Selling expenses
Administrative expenses
Other income
Other expenses
Profit from operating activities (EBIT)
Finance income
Finance costs
Profit / (loss) before income tax
tax income / (expense)
Profit for the period
28
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Resu lts of o perati ons
Revenue
Group’s total revenue developed as follows:
Revenue by region (location of Stabilus company)
T _ 002
I N € M I L L I O N S
Europe
NAFTA
Asia / Pacific and rest of world
Revenue
Revenue by markets
I N € M I L L I O N S
Automotive
Gas spring
Powerise
Industrial
Swivel chair
Revenue
Year ended Sept 30,
2014
267.3
176.8
63.2
507.3
Year ended Sept 30,
2014
340.8
255.0
85.8
142.3
24.2
507.3
2013
244.6
157.9
57.6
460.1
2013
298.0
242.7
55.3
136.9
25.2
460.1
change
% change
22.7
18.9
5.6
47.2
9.3%
12.0%
9.7%
10.3%
T _ 003
change
% change
42.8
12.3
30.5
5.4
(1.0)
47.2
14.4%
5.1%
55.2%
3.9%
(4.0)%
10.3%
Total revenue in the fiscal year 2014 increased by 10.3% compared
Cost of sales and overhead expenses
to the previous fiscal year. The increase is reflected in all regional
areas with NAFTA slightly ahead with an increase of 12.0% to
C O S T O F S A L E S
Europe with 9.3% and Asia / Pacific and rest of world with 9.7%
respectively. The increase is mainly due to our growing Powerise
Cost of sales in the fiscal year 2014 increased by 10.9%, compared
business. Its revenue increased from €55.3 million in the fiscal year
to the previous fiscal year, and thus increased in line with increased
2013 to €85.8 million in the fiscal year 2014. While our revenue
total revenue. The cost of sales as a percentage of revenue remained
in the swivel chair business decreased year-on-year by (4.0)% to
roughly stable at 76.4% (PY: 76.0%).
€24.2 million, the revenue in our automotive Powerise business grew
by 55.2% or €30.5 million. The ongoing increase in the Powerise
R & D E X P E N S E S
business is mainly the result of new OEM platform wins and the
following market introduction of new Powerise variants. The increase
R&D expenses in the fiscal year 2014 increased by 15.3% compared
in the automotive gas spring by 5.1% or €12.3 million is mainly
to the prior fiscal year 2013. Also as percentage of revenue, R&D
driven by the improved economic environment and recovering vehicle
expenses increased slightly from 3.8% in fiscal year 2013 to 4.0%
sales in Europe. Sales in the industrial business increased by 3.9%
in fiscal year 2014. The increase is mainly due to the higher per-
from €136.9 million in the fiscal year ended September 30, 2013 to
sonnel expenses included in the R&D function costs. The Group
€142.3 million in the fiscal year ended September 30, 2014.
invests in the development of new applications and products and
29
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Resu lts of operatio ns
in the continuous optimization and improvement of existing prod-
F I N A N C E I N C O M E A N D C O S T S
ucts and product lines. The main focus in the fiscal year 2014 were
the R&D projects for the Powerise products.
Finance income increased from €5.4 million in fiscal year 2013 to
€17.5 million in fiscal year 2014 primarily due to the increased net
S E L L I N G E X P E N S E S
foreign exchange gains on financial assets and liabilities.
Selling expenses remained essentially unchanged at €(38.9) million
Finance costs decreased significantly from €(46.5) million to
in the fiscal year ended September 30, 2013 to €(38.7) million in
€(38.8) million in fiscal year 2014 by €7.7 million. The decrease
the fiscal year ended September 30, 2014. As a percent of revenue,
was essentially caused by a decrease in losses from changes in
these expenses decreased from 8.5% to 7.6%.
the carrying amount of EUSIs by €5.2 million and a decrease of
A D M I N I S T R AT I V E E X P E N S E S
net foreign exchange losses by €7.2 million.
I N C O M E TA X E X P E N S E
Administrative expenses increased significantly from €(21.2) million
in fiscal year 2013 to €(32.6) million in fiscal year 2014. As per-
After an income tax expense of €(10.1) million in fiscal year 2013, in
centage of revenue, administrative expenses increased as well,
fiscal year 2014 the Group recorded a tax income of €0.1 million.
from 4.6% to 6.4%. The increase is mainly due to the expenses
This was mainly driven by the development of taxable profit in the
with regards of the 2014 IPO and is estimated to return to histo-
period, the deferred taxes amount and the expense resulting from
rical average levels in the coming fiscal year 2015.
the German tax audit covering past four years which were compen-
sated by the deferred tax income driven by the usage of the interest
OT H E R I N C O M E A N D E X P E N S E
carry-forwards in the German tax group. See Notes to Consolidated
Financial Statements below, Note 10, for further details.
Other income slightly decreased from €6.1 million in fiscal year
2013 by €(0.1) million to €6.0 million in fiscal year 2014. This
decrease by (1.6)% is primarily the result of exchange rate related
valuation at the balance sheet day.
Other expense decreased from €(3.6) million in fiscal year 2013
to €(2.9) million in year under review.
30
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Resu lts of o perati ons
Year ended Sept 30,
2014
31.2
20.2
19.9
71.3
17.6
2.1
1.5
21.2
92.5
2013
35.2
21.7
19.0
75.9
6.1
3.6
1.5
11.2
87.1
change
(4.0)
(1.5)
0.9
(4.6)
11.5
(1.5)
–
10.0
5.4
T _ 004
% change
(11.4)%
(6.9)%
4.7%
(6.1)%
>100.0%
(41.7)%
0.0%
89.3%
6.2%
E B I T DA A N D A D J U S T E D E B I T DA
The table below sets out a reconciliation of EBIT to EBITDA and
adjusted EBITDA for the fiscal years 2014 and 2013:
Reconciliation of EBIT to adjusted EBITDA
I N € M I L L I O N S
Profit from operating activities (EBIT)
Depreciation
Amortization
EBITDA
Advisory*
Restructuring / ramp-up
Pension interest add back
Total adjustments
Adjusted EBITDA
* IPO, legal, bond issuance, tax audit and reorganization related advisory expenses.
Adjusted EBITDA represents EBITDA, as adjusted by management
primarily in relation to severance, consulting, restructuring, one-time
legal disputes and other non-recurring costs (e.g. IPO), as well as
interest on pension charges. Adjusted EBITDA is presented because
we believe it is a relevant measure for assessing performance as it
is adjusted for certain one-time or non-recurring items that are not
expected to impact our Group going forward, and thus aids in an
understanding of EBITDA in a given period.
31
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Resu lts of operatio ns
E B I T A N D A D J U S T E D E B I T
The table below shows reconciliations of profit from operating
activities (EBIT) to adjusted EBIT for the fiscal years 2014 and 2013:
Reconciliation of EBIT to adjusted EBIT
I N € M I L L I O N S
Profit from operating activities (EBIT)
Advisory*
Restructuring / ramp-up
Pension interest add back
PPA adjustments – depreciation and amortization
Total adjustments
Adjusted EBIT
Year ended Sept 30,
2014
31.2
17.6
2.1
1.5
12.7
33.9
65.1
2013
35.2
6.1
3.6
1.5
12.7
23.9
59.1
change
(4.0)
11.5
(1.5)
–
–
10.0
6.0
T _ 005
% change
(11.4)%
>100.0%
(41.7)%
0.0%
0.0%
41.8%
10.2%
* IPO, legal, bond issuance, tax audit and reorganization related advisory expenses.
Adjusted EBIT represents EBIT, as adjusted by management primarily
in relation to severance, consulting, restructuring, one-time legal
disputes, IPO related costs, launch costs for new products and other
non-recurring costs, as well as interest on pension charges and the
depreciation and amortization of adjustments of group’s assets to
fair value resulting from the April 2010 purchase price allocation.
32
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT D E V E L O P M E N T O F
O P E R AT I N G S E G M E N T S
Stabilus Group is organized and managed primarily on a regional
level. The three reportable operating segments of the Group are
Europe, NAFTA, Asia / Pacific and rest of world (RoW).
The table below sets out the development of our operating seg-
ments for the fiscal years 2014 and 2013.
Operating segments
I N € M I L L I O N S
Europe
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBITDA
as % of revenue
NAFTA
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBITDA
as % of revenue
Asia / Pacific and RoW
External revenue1)
Intersegment revenue1)
Total revenue1)
Adjusted EBITDA
as % of revenue
1) Revenue breakdown by location of Stabilus company (i. e. “billed-from view”).
Develop ment of op erating segmen ts
Year ended Sept 30,
2014
2013
change
% change
T _ 006
267.3
23.5
290.8
57.5
244.6
28.7
273.3
54.6
19.8%
20.0%
176.8
2.5
179.3
22.8
157.9
2.4
160.3
21.0
12.7%
13.1%
63.2
0.1
63.3
12.2
57.6
0,1
57.7
11.5
19.3%
19.9%
22.7
(5.2)
17.5
2.9
18.9
0.1
19.0
1.8
5.6
–
5.6
0.7
9.3%
(18.1)%
6.4%
5.3%
12.0%
4.2%
11.9%
8.6%
9.7%
0.0%
9.7%
6.1%
33
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Financ ial positio n
The external revenue generated by our European companies
margin decreased slightly from 13.1% in the fiscal year 2013 to
increased by 9.3% from €244.6 million in the fiscal year 2013 to
12.7% in the fiscal year 2014 mainly driven by the currency devel-
€267.3 million in the fiscal year 2014. Adjusted EBITDA of this
opment of the USD-EUR.
operating segment increased in this period by 5.3% to €57.5 mil-
lion with an adjusted EBITDA margin of 19.8%.
In the fiscal year 2014, the external revenue of our companies in
the Asia / Pacific and RoW segment increased by €5.6 million or
The external revenue of our companies located in the NAFTA
9.7%, compared to the corresponding fiscal year 2013. This seg-
region increased by 12.0% from €157.9 million in the fiscal year
ment’s result, measured as adjusted EBITDA, increased by €0.7 mil-
2013 to €176.8 million in the fiscal year 2014 primarily due to
lion or 6.1%. Within this segment China remains strong, while
the strong growth in Powerise business. NAFTA’s adjusted EBITDA
Brazil recorded lower revenue and margin than in fiscal year 2013.
F I N A N C I A L P O S I T I O N
Balance sheet
I N € M I L L I O N S
Assets
Total non-current assets
Total current assets
Total assets
Equity and liabilities
Total equity
Total non-current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
1) adjusted according to IAS 19 (revised)
Sept 30, 2014
Sept 30, 20131)
change
% change
T _ 007
351.1
169.2
520.3
76.1
353.7
90.5
444.2
520.3
429.0
160.3
589.3
80.3
421.1
87.9
509.0
589.3
(77.9)
8.9
(69.0)
(4.2)
(67.4)
2.6
(64.8)
(69.0)
(18.2)%
5.6%
(11.7)%
(5.2)%
(16.0)%
3.0%
(12.7)%
(11.7)%
TOTA L A S S E T S
N O N - C U R R E N T A S S E T S
The Group’s total assets decreased by 11.7% to €520.3 million
Non-current assets decreased by €(77.9) million primarily due to
(PY: €589.3 million). This is mainly due to the reorganization of
the distribution of the upstream shareholder loan caused by the
the Group prior to and immediately following the IPO, which has
disposal of the Company’s interest in Servus II (Gibraltar) Limited.
been described in the prospectus (the prospectus is available under
www.stabilus.com). As a result, the equity upside-sharing instruments
(EUSIs) and the upstream shareholder loan were extinguished and
will no longer be recognized on the Group’s balance sheet.
34
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Liq uid ity
C U R R E N T A S S E T S
by €58.9 million (i.e. €65.0 million proceeds from capital increase,
net of transaction costs and early redemption premium). In addi-
Current assets increased by 5.6% or €8.9 million. This is essentially
tion, the equity upside-sharing instruments have been extinguished
the consequence of higher cash balance and lower trade account
following the IPO reorganization and are not recognized on the
receivable, compared to September 30, 2013. The effect was mainly
Company’s balance sheet as of September 30, 2014. The carrying
triggered by the sale of receivable program (factoring) initiated in
amount of non-current financial liabilities as of September 30, 2014
the fiscal year 2014.
amounts to €256.6 million, €58.5 million lower versus Septem-
E Q U I T Y
ber 30, 2013 amount of €315.1 million.
C U R R E N T L I A B I L I T I E S
The Group’s equity as of September 30, 2014 decreased, as com-
pared to September 30, 2013, from €80.3 million to €76.1 million.
Current liabilities increased slightly by €2.6 million from €87.9 mil-
The profit generated in the fiscal year 2014 amounts to 10.0 mil-
lion as of September 30, 2013 to €90.5 million as of September
lion, IPO costs (net of tax) directly recognized in equity amounts up
30, 2014. The increase of the trade account payables and current
to €(1.2) million and other comprehensive income amounts to
tax liabilities was partly offset by a decrease in provisions and the
€(6.9) million. Other comprehensive income comprises unrealized
financial liabilities.
actuarial losses of €(6.5) million on our German pension plan and
losses from foreign currency translations of €(0.4) million. The
equity ratio improved from 13.6% as of September 30, 2013 to
14.6% as of September 30, 2014.
L I Q U I D I T Y
N O N - C U R R E N T L I A B I L I T I E S
Non-current liabilities decreased by €67.4 million or 16.0%,
activities. Going forward we expect that our capital expenditure
primarily as a result of reduced non-current financial liabilities.
and debt service will be covered by operating cash flow in the next
Our primary sources of liquidity are cash flows from operating
The Group used the proceeds from the capital increase (issue of
twelve months.
new shares) to redeem the senior secured notes on June 5, 2014
Cash flows
I N € M I L L I O N S
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase / (decrease) in cash
Effect of movements in exchange rates on cash held
Cash as of beginning of the period
Cash as of end of the period
Year ended Sept 30,
2014
87.8
(35.6)
(41.2)
11.0
0.7
21.8
33.5
2013
62.8
(113.1)
31.3
(19.0)
(0.9)
41.6
21.8
T _ 008
change
% change
25.0
77.5
39.8%
(68.5)%
(72.5)
<(100.0)%
30.0
1.6
(19.8)
11.7
<(100.0)%
<(100.0)%
(47.6)%
53.7%
35
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Liquidity
C A S H F L O W F R O M O P E R AT I N G A C T I V I T I E S
C A S H F L O W F R O M F I N A N C I N G A C T I V I T I E S
Cash flow from operating activities increased by 39.8% from
Cash flow from financing activities amounts to €(41.2) million in
€62.8 million in fiscal year 2013 to €87.8 million in fiscal year
fiscal year 2014 and to €31.3 million in fiscal year 2013. This is mainly
2014 mainly due to working capital improvements, specifically
the result of higher interest payments following the issuance of
the sales receivable program.
the senior secured notes in June 2013 compared to the fiscal year
C A S H F L O W F R O M I N V E S T I N G A C T I V I T I E S
2013 and the partial redemption of the senior secured notes.
As a result of the aforementioned changes of cash flows from
Cash outflow from investing activities decreased by €77.5 million
operating and investing activities and with adjustments to EBITDA
from €(113.1) million in fiscal year 2013 to €(35.6) million in fiscal
amounting to €21.2 million (PY: €11.2 million), adjusted operating
year 2014, mainly due to the €(80.0) million payment for the
cash flow before tax (AoCF) increased from €43.9 million in fiscal
upstream shareholder loan in the prior year. For further details in
year 2013 to €80.5 million in fiscal year 2014. The following table
regards to the upstream shareholder loan please refer to the Notes
sets out the composition and development of the non-IFRS key figure
to Consolidated Financial Statements, Note 15, below.
adjusted operating cash flow before tax in the reporting period.
Adjusted operating cash flow before tax (AoCF)
T _ 009
I N € M I L L I O N S
Cash flows from operating activities
Cash flows from investing activities
Excl. payment for upstream shareholder loan
Excl. changes in restricted cash
Excl. income tax payments
Operating cash flow before tax
Adjustments to EBITDA
Adjusted operating cash flow before tax
Year ended Sept 30,
2014
87.8
(35.6)
–
–
7.1
59.3
21.2
80.5
2013
62.8
(113.1)
80.0
(2.7)
5.7
32.7
11.2
43.9
change
% change
25.0
77.5
(80.0)
2.7
1.4
26.6
10
36.6
39.8%
(68.5)%
(100.0)%
(100.0)%
24.6%
81.3%
89.3%
83.4%
36
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Liq uid ity
Adjusted operating cash flow before tax (AoCF) represents operat-
F R E E C A S H F L O W ( F C F )
ing cash flow before tax and before extraordinary and exceptional
items. Operating cash flow before tax, in turn, comprises IFRS cash
Free cash flow (FCF) slightly increased from €20.5 million in fiscal
flow statement line items “cash flow from operating activities” and
year 2013 to €22.1 million. The following table sets out the com-
“cash flow from investing activities” according to IAS 7, excluding
position of the non-IFRS figure free cash flow.
“changes in restricted cash”, “income tax payments”, and “pay-
ment for upstream shareholder loan”.
Free cash flow
T _ 010
I N € M I L L I O N S
Cash flows from operating activities
Cash flows from investing activities
Payments for interest
Excl. payment for upstream shareholder loan
Free cash flow
Year ended Sept 30,
2014
87.8
(35.6)
(30.1)
–
22.1
2013
62.8
(113.1)
(9.2)
80.0
20.5
change
% change
25.0
77.5
(20.9)
(80.0)
1.6
39.8%
(68.5)%
>100.0%
(100.0)%
7.8%
Free cash flow (FCF) comprises IFRS cash flow statement items
“cash flow from operating activities”, “cash flow from investing
activities” and “payments for interest” (net interest payments),
excluding “payment for upstream shareholder loan”.
37
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Risks an d opport unit ies
R I S K S A N D
O P P O R T U N I T I E S
Risk management and control over
financial reporting in the
Stabilus Group
By separating financial functions and through ongoing review, we
ensure that potential errors are identified timely and accounting
standards complied with.
Our internal control system is an integral component of the risk
management. The purpose of our internal control system for
accounting and reporting is to ensure their compliance with legal
stipulations, with the principles of proper accounting, with the
rules on the International Financial Reporting Standards as
The Company considers Risk Management (RM) to be a key part of
adopted by the EU and with Group standards. In addition, we per-
effective management and internal control. The Company strives for
form assessments to help identify and minimize any risk with a
effective RM and financial navigation to safeguard the assets of
direct influence on our financial reporting. We monitor changes in
the Company and to proactively support the Company’s strategic
accounting standards and enlist the advice of external experts to
and compliance initiatives. The goal of RM is to help the Company
reduce the risk of accounting misstatements in complex issues.
to operate more effectively in a dynamic environment by providing
a framework for a systematic approach to risks management and
The Company and individual entity financial statements are subject
exploring opportunities with an acceptable level of risk. The Super-
to external audits which act as an independent check and monitor-
visory Board and the Management Board regularly discuss the
ing mechanism of the accounting system and it’s output. The prin-
operational and financial results as well as the related risks.
cipal risks that could have a material impact on the Group are set
out in the note 32 of the consolidated financial statement and are
Risk Management covers financial, strategic, compliance as well
summarized below:
operational aspects. Operational risk is the risk of direct or indirect
loss arising from a wide variety of causes associated with the
Group’s processes, personnel, technology and infrastructure, and
Foreign currency risk
from external factors other than credit, market and liquidity risks
such as those arising from legal and regulatory requirements and
The Stabilus Group reviews the need of forward currency exchange
generally accepted standards of corporate behavior. These opera-
or interest transaction in regular intervals. As of September 30, 2014,
tional risks arise from all of the Group’s operations. The Group’s
no forward exchange transactions or interest hedges were made
objective is to manage operational risk in a way to balance the
within the Group. Operationally we strive to increase our local
avoidance of financial losses and damages to the Group’s reputa-
content to improve our natural hedging position.
tion with overall cost effectiveness, as well as avoiding control pro-
cedures that restrict initiative and creativity. The Company’s policy
on managing financial risks seeks to ensure effective liquidity and
Credit risk
cash flow management and protection of group equity capital
against financial risks. As part of its evolution, the Company
The Group has adopted a policy of dealing only with creditworthy
implements continuous improvements in its risk management and
counterparties and obtaining sufficient collateral where appropriate,
internal control system.
as a means of mitigating the risk of financial loss from defaults.
Receivable exposure is controlled by counterparty limits that are
Our accounting control system is designated to ensure all business
reviewed in regular intervals. Trade receivables consist of a large
transactions are correctly and promptly accounted for and that reli-
number of customers which are spread across diverse industries
able data on the Company’s financial situation is available. It
and geographical areas. Ongoing credit evaluation is performed on
ensures compliance with legal stipulations, accounting standards
the financial condition of accounts receivable and, where appropri-
and accounting rules. A Group-wide calendar of deadlines helps
ate and available, credit guarantee insurance cover is purchased.
ensure the complete and timely processing of financial statements.
38
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Corp orate Go vern ance
Liquidity risk
less NAFTA in particular saw their vehicle markets develop more
dynamically than previously anticipated.
Stabilus has set an appropriate liquidity risk management frame-
work for the management of the Group’s short, medium and long-
term funding and liquidity requirements. The Group manages
liquidity risk by regular reviews, maintaining certain cash reserves,
as well as open credit lines.
There is a risk that financial covenants of the Senior Secured Loan
contract and the revolving credit facility agreement will not be
C O R P O R AT E
G O V E R N A N C E
complied with. All covenants and other conditions set out in the
As a Luxembourg société anonyme, the Company is subject to the
loan contracts were complied with in the past financial year. The
corporate governance regime as set forth in particular in the law of
Group planning shows that these covenants will also be complied
August 10, 1915 on commercial companies. As a company whose
with during the forecast period of the next twelve months.
shares are listed on a regulated market, the Company is further
Interest rate risk
subject to the law of May 24, 2011 on the exercise of certain
shareholder rights in listed companies.
As a Luxembourg société anonyme whose shares are exclusively
The Stabilus Group is reviewing continuously the need of forward
listed on a regulated market in Germany, the Company is not
interest swaps. As of September 30, 2014, no interest hedges were
required to adhere to the Luxembourg corporate governance regime
closed within the Group.
Technical and litigation risks
applicable to companies that are traded in Luxembourg or to the
German corporate governance regime applicable to stock corpora-
tions organized in Germany. The Company has decided to set up
own corporate governance rules as described in the following para-
graphs rather than to confirm such corporate governance regimes
The Group’s products are used in many different applications. A
in order to build up a corporate governance structure which meets
manufacturing quality management system was implemented many
the specific needs and interest of the Company.
years ago to ensure a high degree of functionality and process reli-
ability. Technical risks for new applications are analyzed during
The internal control systems and risk management for the establish-
the offer phase in an opportunities and risks summary and are reas-
ment of financial information is described in the section “Risk man-
sessed regularly in the course of the project. The Group is subject
agement and control over financial reporting in the Stabilus Group”.
to some claims, proceedings and lawsuits related to products,
patents and other matters incidental to these businesses. The in-
According to the Articles of Incorporation of the Company, the
house legal department monitors these risks continuously and
Management Board must be composed of at least two Management
reports regularly to Group management and the Supervisory Board.
Board members, and the Supervisory Board must be composed of
Insurance coverage within certain limits is provided.
at least three Supervisory Board members. The Supervisory Board
Opportunities of the further develop-
ment of the Company
has set up the following committees in accordance with the Arti-
cles of Incorporation: Audit Committee and Remuneration Commit-
tee. The Audit Committee is responsible for the consideration and
evaluation of the auditing and accounting policies and its financial
controls and systems. The Remuneration Committee is responsible
At the end of the reporting period, macro conditions in the majority
for making recommendations to the Supervisory Board and the
of the economic regions around the globe as well as market perfor-
Management Board on the terms of appointment and the benefits
mance measured on the basis of global automobile production
of the managers of the Company as well as for making recommen-
were as favourable as at the beginning of the fiscal year. Neverthe-
dations on bonus payments to be made to all Stabilus employees.
39
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
Corporate Gover nanc e
Further details on the composition and purpose of these commit-
F) The Articles of Incorporation of the Company do not contain
tees and of the Management Board and the Supervisory Board
any restrictions on voting rights.
is described in the section “Management and Supervisory Board
G) There are no agreements with shareholders which are known to
of Stabilus S.A.”.
the Company and may result in restrictions on the transfer of
securities or voting rights within the meaning of Directive
The Annual General Meeting shall be held on the third Wednesday
2004 / 109 / EC (Transparency Directive).
of the month of February at 10 a.m. Luxembourg time. If such day
H) Rules governing the appointment and replacement of Manage-
is not a business day in Luxembourg, the meeting shall be held on
ment Board members and the amendment of the Articles of
the next following business day, at the same hour. The Management
Incorporation:
Board and Supervisory Board may convene extraordinary General
– The Management Board members are appointed by the
Meetings as often as the Company’s interests so require. An extraor-
Supervisory Board by the majority of the votes of the mem-
dinary general shareholders’ meeting must be convened upon the
bers present or represented (abstention or non-participation
request of one or more shareholders who together represent at
being taken into account as a vote against the appoint-
least one tenth of the Company’s share capital.
ment), or in the case of a vacancy, by way of a decision of
the remaining Management Board members for the period
Each share entitles the holder to one vote. The right of a share-
until the next Supervisory Board Meeting.
holder to participate in a General Meeting and to exercise the vot-
– Management Board members serve for the following terms:
ing rights attached to his shares are determined with respect to
Chief Executive Officer four years, Chief Financial Officer
the shares held by such shareholder the 14th day before the General
three years and other Board members one year. Manage-
Meeting. Each shareholders can exercise their voting rights in person,
ment Board members are eligible for re-appointment.
through a proxyholder or in writing (if provided for in the relevant
– Management Board members may be removed at any time
convening notice).
with or without cause by the Supervisory Board by a simple
majority of the votes.
The information required by article 10.1 of Directive 2004 / 25 / EC
– Resolutions to amend the Articles of Incorporation may be
on takeover bids which has been implemented by article 11 of
adopted by a majority of two thirds of the votes validly
the law of May 19, 2006 on takeovers (the “Law on Takeovers”) is
cast, without counting the abstentions, if the quorum of half
set forth here below under “Disclosure Regarding Article 11 of the
of the share capital is met. If the quorum requirement of
Law on Takeovers of May 19, 2006”.
half of the share capital of the Company is not met at the
first General Meeting, then the shareholders may be re-con-
D I S C L O S U R E R E G A R D I N G A R T I C L E 1 1 O F T H E
vened to a second General Meeting. No quorum is required
L A W O N TA K E O V E R S O F M AY 1 9 , 2 0 0 6
in respect of such second General Meeting and the resolu-
tions are adopted by a supermajority of two-thirds of the
A) For information regarding the structure of capital, reference is
votes validly cast, without counting the abstentions.
made to note 21 of the consolidated financial statements.
I) Powers of the Management Board:
B) The Articles of Incorporation of the Company do not contain
– The Company is managed by a Management Board under
any restrictions on the transfer of shares of the Company.
the supervision of the Supervisory Board.
C) Information regarding section c) of the law (significant direct
– The Management Board is vested with the broadest powers
and indirect shareholdings) can be found in note 38 of the con-
to perform or cause to be performed any actions necessary
solidated financial statement.
or useful in connection with the purpose of the Company.
D) The Company has not issued any securities granting special
– All powers not expressly reserved by the Companies Act or
control rights to their holders.
by the Articles of Incorporation to the General Meeting or
E) The control rights of any shares issued in connection with
the Supervisory Board fall within the authority of the Man-
employee share schemes are exercised directly by the respective
agement Board.
employees.
40
ANNUAL REPORT 2014GROUP MANAGEMENT REPORT Sub seq uent events
Outlo o k
– Certain transactions and measures are subject to the prior
approval of the Supervisory Board on the terms set out in
the Articles of Incorporation.
S U B S E Q U E N T E V E N T S
– The Management Board may appoint one or more persons,
The Group evaluates the opportunity to benefit of the current low
who may be a shareholder or not, or who may be a member
financing cost through a new refinancing.
of the Management Board or not, to the exclusion of any
member of the Supervisory Board, who shall have full author-
As of November 28, 2014, there were no further events or develop-
ity to act on behalf of the Company in all matters pertaining
ments that could have materially affected the measurement and pres-
to the daily management and affairs of the Company.
entation of Group’s assets and liabilities as of September 30, 2014.
– The Management Board is also authorized to appoint a per-
son, either a director or not, to the exclusion of any member
of the Supervisory Board, for the purposes of performing
specific functions at every level within the Company.
– The Management Board may also appoint committees and
sub-committees in order to deal with specific tasks, to
O U T L O O K
advise the Management Board or to make recommendations
The forecast for the global light vehicle production sees an annual
to the Management Board and / or, as the case may be, the
production growth rate between 3% and 4% for the next 3 years.
General Meeting, the members of which may be selected either
The growth rate in China is expected to slow down to around 4%
from among the members of the Management Board or not,
in 2018. The NAFTA region is expected to grow on a constant level
to the exclusion of any member of the Supervisory Board.
of 2% where as the production in Europe is expected to increased
– The Management Board does not have currently any author-
by 2016 and 2017 with an annual groth rate of around 4%.
ity to issue shares in the Company under the Articles of
Incorporation.
For the growth rate of revenue, adjusted EBITDA and adjusted EBIT
– The Management Board does not have currently any author-
we target to achieve a similar growth rate as achieved for the fiscal
ity to buy back shares under the Articles of Incorporation or
year 2014.
a buy-back program.
J) There are no significant agreements to which the Company is
party and which take effect, alter or terminate upon a change
of control of the Company following a takeover bid.
K) There are no agreements between the Company and its Man-
agement Board members or employees providing for compensa-
tion if they resign or are made redundant without valid reason
or if their employment ceases because of a takeover bid.
41
ANNUAL REPORT 2014GROUP MANAGEMENT REPORTFINANCIAL STATEMENTSADDITIONAL INFORMATIONDC
F I N A N C I A L S T A T E M E N T S
L I F T- O - M AT
F I N A N C I A L
S TAT E M E N T S
Stabilus gas pressure springs in the LIFT-O-MAT
line are used whenever loads need to be lifted
or lowered in a controlled manner. They provide
force assist and thus ensure optimum weight
equalization. With LIFT-O-MAT gas springs, open-
ing and closing doors and lids becomes child’s
play. Its damping properties ensure safe and
user-friendly motion sequences.
A N N U A L R E P O R T 2 0 1 4
43
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
S
T
N
E
M
E
T
A
T
S
L
A
I
C
N
A
N
I
F
C
N
O
I
T
A
M
R
O
F
N
I
L
A
N
O
I
T
I
D
D
A
D
CONTENTS
C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S
C O N S O L I DAT E D F I N A N C I A L
S TAT E M E N T S
for the fiscal year ended September 30, 2014
4 5
C O N S O L I D A T E D S T A T E M E N T
O F C O M P R E H E N S I V E I N C O M E
4 6
C O N S O L I D A T E D S T A T E M E N T
85
16 Other assets
85
17
Inventories
86
18 Trade accounts receivable
86
19 Current tax assets
86
20 Cash and cash equivalents
O F F I N A N C I A L P O S I T I O N
87
21 Equity
89
22 Financial liabilities
93
23 Other financial liabilities
4 8
C O N S O L I D A T E D S T A T E M E N T
93
24 Provisions
O F C H A N G E S I N E Q U I T Y
95
25 Pension plans and similar obligations
4 9
C O N S O L I D A T E D S T A T E M E N T
O F C A S H F L O W S
5 0
N O T E S T O C O N S O L I D A T E D
F I N A N C I A L S T A T E M E N T S
1 General Information
2 Basis for presentation
3 Accounting policies
4 Revenue
99
26 Trade accounts payable
99
27 Current tax liabilities
99
28 Other liabilities
99
29 Leasing
101
30
Contingent liabilities and other financial commitments
103
31 Financial instruments
105
32 Risk reporting
108
33 Capital management
109
34
Notes to the consolidated statement of cash flows
110
35
Segment reporting
112
36
Share-based payment
113
37 Auditor’s fees
114
38 Related party relationships
5
Cost of sales, research and development,
114
39
Remuneration of key management personnel
selling and administrative expenses
115
40 Subsequent events
6 Other income
7 Other expenses
8 Finance income
9 Finance costs
10
Income tax expense
11 Earnings per share
1 1 6 R E S P O N S I B I L I T Y S T A T E M E N T
1 1 7
M A N A G E M E N T A N D S U P E R V I S O R Y
B O A R D O F S T A B I L U S S . A .
12 Property, plant and equipment
1 1 8
I N D E P E N D E N T A U D I T O R ’ S R E P O R T
13 Goodwill
14 Other intangible assets
15 Other financial assets
A N N U A L R E P O R T 2 0 1 4
50
51
62
71
72
73
73
74
74
74
77
79
80
82
83
44
Comp rehensive Inc ome
T _ 011
Year ended Sept 30,
2014
507,333
20131)
460,103
(387,737)
(349,705)
119,596
(20,291)
(38,703)
(32,563)
6,012
(2,855)
31,196
17,451
(38,775)
9,872
78
9,950
(136)
110,398
(17,573)
(38,933)
(21,214)
6,054
(3,536)
35,196
5,463
(46,525)
(5,866)
(10,145)
(16,011)
(73)
10,086
(15,938)
(422)
(6,444)
(6,866)
3,084
(136)
3,220
3,145
(671)
2,474
(13,537)
(73)
(13,464)
0.54
0.54
(0.90)
(0.90)
N OT E
4
5
5
5
5
6
7
8
9
10
21
21
11
11
C O N S O L I DAT E D S TAT E M E N T O F
C O M P R E H E N S I V E I N C O M E
for the fiscal year ended September 30, 2014
Consolidated statement of comprehensive income
I N € T H O U S A N D S
Revenue
Cost of sales
Gross profit
Research and development expenses
Selling expenses
Administrative expenses
Other income
Other expenses
Profit from operating activities
Finance income
Finance costs
Profit / (loss) before income tax
Income tax income / (expense)
Profit / (loss) for the period
thereof attributable to non-controlling interests
thereof attributable to shareholders of Stabilus
Other comprehensive income / (expense)
Foreign currency translation difference 2)
Unrealized actuarial gains / (losses), net of taxes 3)
Other comprehensive income / (expense), net of taxes
Total comprehensive income / (expense) for the period
thereof attributable to non-controlling interests
thereof attributable to shareholders of Stabilus
Earnings per share (in €):
basic
diluted
1) Information related to the adjustment of the prior-year figures according to IAS 19 (revised) is disclosed in Note 2.
2) Item that may be reclassified (‘recycled’) to profit and loss at future point in time when specific conditions are met.
3) Item that will not be reclassified to profit and loss.
The accompanying Notes form an integral part of these Consolidated Financial Statements.
45
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Financ ial Posit ion
C O N S O L I DAT E D S TAT E M E N T O F
F I N A N C I A L P O S I T I O N
as of September 30, 2014
Consolidated statement of financial position
T _ 012
N OT E
Sept 30, 2014
Sept 30, 20131)
Oct 1, 20121)
12
13
14
15
16
10
17
18
19
15
16
20
119,642
51,458
170,971
–
1,102
7,919
116,276
51,458
175,763
77,134
1,024
7,353
120,115
51,458
180,907
2,679
1,170
5,061
351,092
429,008
361,390
49,540
56,497
2,403
18,304
8,972
33,494
169,210
520,302
46,063
67,776
397
10,845
13,380
21,819
160,280
589,288
49,974
58,950
3,567
–
15,046
41,638
169,175
530,565
I N € T H O U S A N D S
Assets
Property, plant and equipment
Goodwill
Other intangible assets
Other financial assets
Other assets
Deferred tax assets
Total non-current assets
Inventories
Trade accounts receivable
Current tax assets
Other financial assets
Other assets
Cash and cash equivalents
Total current assets
Total assets
46
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Fi nanci al Position
Consolidated statement of financial position
T _ 012
N OT E
Sept 30, 2014
Sept 30, 20131)
Oct 1, 20121)
I N € T H O U S A N D S
Equity and liabilities
Issued capital
Capital reserves
Retained earnings
Other reserves
Equity attributable to shareholders of Stabilus
Non-controlling interests
Total equity
Financial liabilities
Other financial liabilities
Provisions
Pension plans and similar obligations
Deferred tax liabilities
Total non-current liabilities
Trade accounts payable
Financial liabilities
Other financial liabilities
Current tax liabilities
Provisions
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
21
21
21
21
21
22
23
24
25
10
26
22
23
27
24
28
207
73,091
7,920
(5,128)
76,090
33
76,123
256,556
960
4,060
48,353
43,765
353,694
53,724
5,789
6,360
5,082
8,551
10,979
90,485
444,179
520,302
5,013
74,403
(991)
1,737
80,162
169
80,331
315,097
1,472
7,037
39,123
58,334
421,063
44,977
7,663
8,886
1,587
13,908
10,873
87,894
508,957
589,288
1) Information related to the adjustment of the prior-year figures according to IAS 19 (revised) is disclosed in Note 2.
The accompanying Notes form an integral part of these Consolidated Financial Statements.
5,013
30,550
20,588
(736)
55,415
319
55,734
285,466
2,342
10,406
38,067
56,102
392,383
42,898
–
7,396
560
17,565
14,029
82,448
474,831
530,565
47
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Changes in Equit y
C O N S O L I DAT E D S TAT E M E N T O F
C H A N G E S I N E Q U I T Y
for the fiscal year ended September 30, 2014
Consolidated statement of
changes in equity
I N € T H O U S A N D S
N OT E
Issued
capital
Capital
reserves
Retained
earnings
Other
reserves
T _ 013
Equity
attributable to
shareholders
of Stabilus
Non-
controlling
interests
Total Equity
Balance as of Oct 1, 2012
5,013
30,550
20,588
899
57,050
319
57,369
–
–
–
–
–
–
(1,635)
(1,635)
–
(1,635)
5,013
30,550
20,588
(736)
(15,938)
–
–
2,474
55,415
(15,938)
2,474
319
(73)
–
55,734
(16,011)
2,474
(15,938)
2,474
(13,464)
(73)
(13,537)
44,003
–
–
(5,641)
(150)
–
–
–
–
44,003
(5,641)
(150)
–
–
(77)
44,003
(5,641)
(227)
5,013
74,403
(991)
1,737
80,162
169
80,331
10,086
–
–
(6,866)
10,086
(6,866)
(136)
9,950
–
(6,866)
10,086
(6,866)
3,220
(136)
3,084
Effects from first-time adoption
of IAS 19R1)
Balance as of Oct 1, 2012
adjusted1)
Profit / (loss) for the period
Other comprehensive income1)
Total comprehensive income
for the period
Contributions by owners
Distribution of shareholder loan
Dividends
Balance as of Sept 30, 2013
adjusted1)
Profit / (loss) for the period
Other comprehensive income
Total comprehensive income
for the period
Reduction of issued capital
Proceeds from capital increase
Contributions by owners
IPO costs directly recognized in
equity, net of tax
Dividends
2
21
21
21
21
21
21
21
21
21
21
21
21
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(4,836)
4,836
30
64,970
10,020
–
–
–
–
(1,175)
(81,137)
–
–
–
–
–
–
–
65,000
10,020
(1,175)
(81,137)
76,090
–
–
–
–
–
–
65,000
10,020
(1,175)
(81,137)
33
76,123
Balance as of Sept 30, 2014
207
73,091
7,920
(5,128)
1) Information related to the adjustment of the prior-year figures according to IAS 19 (revised) is disclosed in Note 2.
The accompanying Notes form an integral part of these Consolidated Financial Statements.
48
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Cash Fl ows
C O N S O L I DAT E D S TAT E M E N T O F C A S H F L O W S
for the fiscal year ended September 30, 2014
Consolidated statement of cash flows
I N € T H O U S A N D S
Profit/ (loss) for the period
Current income tax
Deferred income tax
Net finance result
Depreciation and amortization
Other non-cash income and expenses
Changes in inventories
Changes in trade accounts receivable
Changes in trade accounts payable
Changes in other assets and liabilities
Changes in restricted cash
Changes in provisions
Changes in deferred tax assets and liabilities
Income tax payments
Cash flows from operating activities
Proceeds from disposal of property, plant and equipment
Purchase of intangible assets
Purchase of property, plant and equipment
Cash flows from disposals and acquisitions of tangible and intangible assets
Payments for upstream shareholder loan
Cash flows from changes in non-current financial assets
Cash flows from investing activities
Receipts from contributions of equity
Receipts from issuance of senior secured notes
Receipts under revolving credit facility
Payments under revolving credit facility
Payments for redemption of financial liabilities
Payments for redemption of other financial liabilities
Payments for finance leases
Payments of transaction costs
Dividends paid
Dividends paid to non-controlling interests
Payments for interest
Cash flows from financing activities
Net increase / (decrease) in cash and cash equivalents
Effect of movements in exchange rates on cash held
Cash and cash equivalents as of beginning of the period
Cash and cash equivalents as of end of the period
N OT E
10
10
8/9
5
34
14
12
15
21
22
22
23
29
21
21
34
1) Information related to the adjustment of the prior-year figures according to IAS 19 (revised) is disclosed in Note 2.
The accompanying Notes form an integral part of these Consolidated Financial Statements.
T _ 014
Year ended Sept 30,
2014
9,950
10,522
(10,600)
21,325
40,110
(10,222)
(3,477)
11,279
8,747
5,705
–
896
10,600
(7,065)
87,770
48
(14,394)
(21,246)
(35,592)
–
–
(35,592)
65,000
–
8,000
(8,000)
20131)
(16,011)
10,373
(228)
41,063
40,661
(5,544)
3,911
(8,826)
2,079
5,040
2,679
(6,930)
228
(5,663)
62,832
1,277
(14,179)
(20,211)
(33,113)
(80,014)
(80,014)
(113,127)
44,003
315,000
–
–
(58,877)
(303,806)
(1,661)
(1,191)
(14,362)
–
–
(30,113)
(41,204)
10,974
701
21,819
33,494
–
(1,792)
(12,658)
(150)
(77)
(9,177)
31,343
(18,952)
(867)
41,638
21,819
49
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
N OT E S TO C O N S O L I DAT E D F I N A N C I A L
S TAT E M E N T S
as of and for the fiscal year ended September 30, 2014
1 General Information
Stabilus S.A. , Luxembourg, hereinafter also referred to as "Stabilus" or the "Company" (former Servus
HoldCo S.à r.l., hereinafter also referred to as “Servus HoldCo”) is a public limited liability company
(société anonyme) incorporated in Luxembourg and governed by Luxembourg law. The Company is
registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés
Luxembourg) under No. B151589 and its registered office is located at 2, rue Albert Borschette,
L-1246 Luxembourg, Grand Duchy of Luxembourg. The Company was founded under the name Servus
HoldCo S.à r.l. on February 26, 2010. Following the shareholder resolution dated May 5, 2014, the
corporate form and the name of the Company were changed from “Servus HoldCo S.à r.l.”, private
limited liability company (société à responsabilité limitée), to “Stabilus S.A.”, a public limited liability
company (société anonyme).
The fiscal year is from October 1 to September 30 of the following year (twelve-month period). The
consolidated financial statements of Stabilus S.A. include Stabilus and its subsidiaries (hereafter also
referred to as “Stabilus Group” or the “Group”).
The Stabilus Group is a leading manufacturer of gas springs and dampers, as well as electric tailgate
lifting and closing equipment. The products are used in a wide range of applications in automotive and
industrial applications, as well as in the furniture industry. Typically the products are used to aid the
lifting and lowering or dampening of movements. As a world market leader for gas springs, the Group
ships to all key vehicle manufacturers. Various Tier 1 suppliers of the global car industry as well large
technical focused distributors further diversify the Group’s customer base.
The consolidated financial statements are prepared in euro (€) rounded to the nearest thousand. Due
to rounding, numbers presented may not add up precisely to totals provided.
The consolidated financial statements of Stabilus and its subsidiaries have been prepared in accor-
dance with International Financial Reporting Standards (IFRS), as adopted by the EU.
The consolidated financial statements were authorized for issue by the Management Board on Novem-
ber 28, 2014.
50
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS 2 Basis for presentation
P R E PA R AT I O N
Applying IAS 1, items of the statement of financial position are differentiated between non-current and
current assets and liabilities. Assets and liabilities are classified as current if they have a remaining
term of less than one year. Accordingly, assets and liabilities are classified as non-current if they remain
in the Group for more than one year. Deferred tax assets and deferred tax liabilities, as well as assets
and provisions from defined benefit pension plans and similar obligations are reported as non-current
items. The consolidated statement of comprehensive income is presented using the cost of sales method.
M E A S U R E M E N T
The consolidated financial statements have been prepared on the historical cost basis, with the excep-
tion of certain items, such as derivative financial instruments or hedged transactions and pensions and
similar obligations. The measurement methods applied to these exceptions are described below.
U S E O F E S T I M AT E S A N D J U D G M E N T S
Certain of the accounting policies require critical accounting estimates that involve complex and sub-
jective judgments and the use of assumptions, some of which may be for matters that are inherently
uncertain and susceptible to change. Such critical accounting estimates could change from period to
period and have a material impact on the financial position or results of operations. Critical accounting
estimates could also involve estimates where management could reasonably have used a different esti-
mate in the current accounting period. Management wishes to point out that future events often vary
from forecasts and that estimates routinely require adjustment.
Impairment of non-financial assets:
Stabilus assesses at every reporting date whether there are indications that its non-financial assets
may be impaired. Goodwill and development cost under construction are tested annually for impair-
ment. Further tests are carried out if there are indications for impairment. Other non-financial assets
are tested for impairment if there are indications that the carrying amount may not be recoverable. If
the fair value less costs of disposal is calculated, management must estimate the expected future cash
flows from the asset or the cash-generating unit and select an appropriate discount rate in order to
determine the present value of this cash flow.
Trade and other receivables:
The allowance for doubtful accounts involves significant management judgment and review of individ-
ual receivables based on individual customer creditworthiness, current economic trends and analysis of
historical allowances. We refer also to Note 18.
51
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND Deferred tax assets:
The valuation of deferred tax assets is based on mid-term business plans of the respective entities which
recorded deferred tax assets. These mid-term business plans range from three to five years and include
several underlying assumptions and estimates in respect of the business development, strategic
changes, cost optimization and business improvement and also general market and economic develop-
ment. Deferred tax assets are recognized to the extent that sufficient taxable profit at the level of the
relevant tax authority will be available for the utilization of the deductible temporary differences. Stabi-
lus recognizes a valuation allowance for deferred tax assets when it is unlikely that sufficient future
taxable profit will be available. We refer also to Note 10.
Provisions:
Significant estimates are involved in the determination of provisions related to pensions and other
obligations, contract losses, warranty costs and legal proceedings. We refer also to Note 24 and 25.
R I S K S A N D U N C E R TA I N T I E S
The Group’s net assets, financial position and results of operations are subject to risks and uncertainties.
Factors that could affect the future net assets, financial position and results of operations and there-
fore cause actual results to vary from the expectations include sales volume changes due to changes
in the overall economy, evolvement of price-aggressive competitors, significant price changes for raw
materials and overall purchase costs. Quality issues may result in significant costs for the Group, in
spite of a benchmarked insurance cover. The Group financing with its long-term fixed-interest rates
that have a duration until June 2018 play a key role for the long-term stability of the Group.
G O I N G C O N C E R N
These consolidated financial statements are prepared based on the going concern assumption.
S C O P E O F C O N S O L I DAT I O N
All entities over which Stabilus can exercise control are included in the scope of consolidation. Control
means the power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. The subsidiaries are included in the scope of consolidation as of the date Stabilus
obtains control.
Non-controlling interests represent the portion of profit and loss and net assets not held by the Group
and are presented separately in the consolidated statement of comprehensive income and the consoli-
dated statement of financial position.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated
statement of comprehensive income from the effective date of acquisition or up to the effective date of
disposal, as appropriate. Inclusion in the consolidated financial statements ends as soon as the Com-
pany no longer has control.
52
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS In addition to Stabilus, altogether 27 subsidiaries (see following list), are included in the consolidated
financial statements as of September 30, 2014.
Subsidiaries
N A M E O F T H E C O M PA N Y
Servus Sub S.à r.l.
Servus Luxembourg S.à r.l.
Servus III (Gibraltar) Limited
Registered office
of the entity
Luxembourg
Luxembourg
Gibraltar
Stabilus S.A.
Stabilus S.A.
Stabilus S.A.
Interest and control held by
Holding in %
T _ 015
Consolidation
method
100.00%
100.00%
100.00%
99.9968%
0.0032%
100.00%
94.90%
94.90%
5.10%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.99%
100.00%
100.00%
100.00%
Servus Luxembourg Holding S.C.A.
Luxembourg
Servus Sub S.à r.l.
Servus Luxembourg S.à r.l.
Blitz F10-neun GmbH
Frankfurt, Germany
Stabilus S.A.
Blitz F10-acht-drei-drei GmbH & Co KG
Frankfurt, Germany
Servus III (Gibraltar) Limited
Stable II S.à r.l.
Luxembourg
Servus Luxembourg Holding S.C.A.
Blitz F10-acht-drei-drei GmbH & Co KG
Stable Beteiligungs GmbH
Koblenz, Germany
Stable II S.à r.l.
Stable HoldCo Inc.
Wilmington, USA
Stable Beteiligungs GmbH
Stable HoldCo Australia Pty. Ltd.
Dingley, Australia
Stable II S.à r.l.
LinRot Holding AG
Zurich, Switzerland
Stable II S.à r.l.
Stabilus UK HoldCo Ltd.
Banbury, United Kingdom Stable Beteiligungs GmbH
Stabilus GmbH
Koblenz, Germany
Stable Beteiligungs GmbH
Stabilus Powerise GmbH
Melle, Germany
LinRot Holding AG
Stabilus Pty. Ltd.
Stabilus Ltda.
Stabilus Espana S.L.
Stabilus Ltd.
Stabilus Co. Ltd.
Dingley, Australia
Stable HoldCo Australia Pty. Ltd.
Itajubá, Brazil
Lezama, Spain
Stabilus GmbH
Stabilus GmbH
Banbury, United Kingdom Stabilus UK HoldCo Ltd.
Busan, South Korea
Stabilus GmbH
Stabilus S.A. de C.V.
Ramos Arizpe, Mexico
Stabilus GmbH
99.9998%
Stabilus Inc.
Stabilus Limited
Stabilus Japan Corp.
Stabilus France S.à r.l.
Stabilus Ltd.
Gastonia, USA
Stable HoldCo Inc.
Auckland, New Zealand
Stabilus GmbH
Yokohama, Japan
Stable Beteiligungs GmbH
Poissy, France
Stabilus GmbH
Stabilus Romania S.R.L.
Brasov, Romania
Stable Beteiligungs GmbH
Stabilus (Jiangsu) Ltd.
Wujin, China
Stabilus GmbH
Stabilus GmbH
Orion Rent Imobiliare S.R.L.
Brasov, Romania
Stable Beteiligungs GmbH
Stabilus Ltd.
0.0002%
100.00%
80.00%
100.00%
100.00%
3.01%
96.99%
100.00%
98.00%
2.00%
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
Full
53
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND Compared to the previous fiscal year two holding companies, Stable Romania S.R.L, Romania and Sta-
bilus US HoldCo Inc., Wilmington, USA, are no longer separately included in the scope of consolidation
as these two companies have been merged with other group entities.
In the third quarter of the fiscal year 2014, 90% of the interest in the company Servus II (Gibraltar)
Limited was distributed as a dividend to the shareholder Servus Group HoldCo II S.à r.l., the remaining
partizipation of 10% was sold. The company Servus III (Gibraltar) Limited was founded in 2014 and
included in consolidation for the first time.
P R I N C I P L E S O F C O N S O L I DAT I O N
The assets and liabilities of the domestic and foreign entities included in consolidation are recognized
in accordance with the uniform accounting policies of the Stabilus Group. Receivables and liabilities or
provisions between the consolidated companies are offset. Intragroup revenue and other intragroup
income and the corresponding expenses are eliminated. Intercompany gains and losses on intragroup
delivery and service transactions are eliminated through profit or loss, unless they are immaterial.
Deferred taxes, which reflect the average income tax charge on the recipient group entity, are recog-
nized on consolidation adjustments affecting profit or loss.
B U S I N E S S C O M B I N AT I O N
Business combinations are accounted for using the acquisition method as of the acquisition date, which
is the date on which control is transferred to the Group. Goodwill is measured at the acquisition date as:
•
•
•
the fair value of the consideration transferred, plus
the recognized amount of any non-controlling interests in the acquiree, less
the net recognized amount (generally the fair value) of the identifiable assets acquired and liabili-
ties assumed.
The consideration transferred does not include amounts related to the settlement of pre-existing rela-
tionships. Such amounts are generally recognized in profit or loss. Costs related to the acquisition,
other than those associated with the issue of debt or equity securities that the Group incurs in connec-
tion with the business combination are expensed as incurred.
Non-controlling interests in the net assets (excluding goodwill) of consolidated subsidiaries consist of
the amount of those interests at the date of the original business combination and the minority’s share
of changes in equity since the date of the combination. Effective January 30, 2014, the remaining 2%
shares in Orion Rent Imobiliare S.R.L., Brasov, Romania, were acquired for €4.64.
F O R E I G N C U R R E N C Y T R A N S L AT I O N
The consolidated financial statements are presented in euro, as the Group’s functional and presentation
currency. Each entity in the Group determines its own functional currency, which is the currency of its
primary economic environment in which the entity operates. Items included in the financial statements
of each entity are measured using that functional currency. Transactions in foreign currencies are
54
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS initially recorded at the functional currency rate at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated at the functional currency rate of exchange
at the balance sheet date. All differences are taken to profit or loss. Non-monetary items that are meas-
ured in terms of historical cost in a foreign currency are translated using the exchange rates as of the
date of the initial transactions. Non-monetary items measured at fair value in a foreign currency are
translated using the exchange rates at the date when the fair value is determined. Any goodwill arising
on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of
assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign opera-
tion and translated at the historic rate.
Assets and liabilities of foreign subsidiaries where the functional currency is other than euro (€) are
translated using the financial period-end exchange rates, while their income and expenses are trans-
lated using the average exchange rates during the period.
Foreign currency transaction gains and losses on operating activities are included in other operating
income and expenses. Foreign currency gains and losses on financial receivables and debts are
included in interest income and expenses.
Translation adjustments arising from exchange rate differences are included in a separate component
of shareholder’s equity in amounts recognized directly in equity. On disposal of a foreign entity, the
deferred cumulative amount recognized in equity relating to that particular foreign operation is recog-
nized in profit or loss.
The exchange rates of the significant currencies of non-euro countries used in the preparation of the
consolidated financial statements were as follows:
Exchange rates
T _ 016
C O U N T RY
Australia
Brazil
China
South Korea
Mexico
Romania
USA
Closing rate Sept 30,
Average rate for the
year ended Sept 30,
2014
1.4539
3.0926
7.8098
2013
1.4498
3.0181
8.3055
2014
1.4753
3.1070
8.3414
2013
1.3229
2.7669
8.1884
1,338.6700
1,454.2100
1,424.7400
1,451.4900
17.0692
17.5791
17.7724
16.7285
4.4114
1.2687
4.4604
1.3510
4.4525
1.3575
4.4422
1.3123
I S O C O D E
AUD
BRL
CNY
KRW
MXP
ROL
USD
55
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND C H A N G E S I N A C C O U N T I N G P O L I C I E S O N A C C O U N T O F N E W S TA N DA R D S
The following table shows the changes in accounting policies regarding IAS 8.28:
New standards and interpretations
T _ 017
S TA N D A R D / I N T E R P R E TAT I O N
Amendment to IFRS 1
Severe Hyperinflation and Removal of Fixed Dates for
First-time Adopters
Amendment to IFRS 1
Government Loans
Amendments to IFRS 7
Disclosures – Offsetting Financial Assets and
Financial Liabilities
Effective date
stipulated by IASB
Effective date
stipulated by EU
July 1, 2011
January 1, 2013
January 1, 2013
January 1, 2013
January 1, 2013
January 1, 2013
IFRS 13
Fair Value Measurement
January 1, 2013
January 1, 2013
Amendment to IAS 12
Deferred Taxes: Recovery of Underlying Assets
January 1, 2012
January 1, 2013
IAS 19
Employee Benefits (Revised 2011)
January 1, 2013
January 1, 2013
Improvements to IFRSs (2011)
Collection of Amendments to International Financial
Reporting Standards
January 1, 2013
January 1, 2013
IFRIC 20
Stripping Costs in the Production Phase of a Surface Mine
January 1, 2013
January 1, 2013
The effective date presented above is the date of mandatory application in annual periods beginning on or after that date.
Amendment to IFRS 1: Severe Hyperinflation and Removal of Fixed Dates for First-time
Adopters:
If a first-time adopter has a functional currency that was, or is the currency of a hyperinflationary economy,
then it should determine whether it was subject to severe hyperinflation before the date of transition
to IFRSs. When an entity’s date of transition to IFRSs is on, or after, the functional currency normaliza-
tion date, the entity may elect to measure assets and liabilities held before the functional currency nor-
malization date at fair value on the date of transition to IFRSs and use that fair value as the deemed
cost of those assets and liabilities in the opening IFRS statement of financial position. Any adjustments
should be recognized directly in the retained earnings or, if appropriate, another component of equity.
As the Group is no first-time adopter of IFRS the amendment has no impact on the Consolidated
Financial Statements of the Stabilus Group as the Group has no entities in hyperinflationary countries.
Amendment to IFRS 1: Government Loans
The amendment adds a new exception to the retrospective application of IFRS whereas a first-time
adopter of IFRS now applies the measurement requirements of the financial instrument standards (IAS
39 and IFRS 9) to a government loan with a below-market rate of interest at fair value prospectively
from the date of transition to IFRS. Alternatively, a first-time adopter may elect to apply the measure-
ment requirements retrospectively to a government loan, if the information needed was obtained when
it first accounted for that loan. This election is available on a loan-by-loan basis. If a first-time adopter
applies the measurement prospectively, then it uses the previous GAAP carrying amount of a govern-
ment loan as the carrying amount of the loan in its opening IFRS statement of financial position. Sub-
sequently, the loan has to be measured at amortized cost, using an effective interest rate calculated at
56
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS the date of transition. As the Group is no first-time adopter of IFRS the amendment has no impact on
the Consolidated Financial Statements of the Stabilus Group as the Group has no government loans.
Amendment to IFRS 7: Disclosures – Offsetting Financial Assets and Financial Liabilities
This amendment to IFRS 7 requires more extensive disclosures about offsetting (also known as netting)
of financial instruments. The new rules require companies to identify and disclose not only the financial
assets and liabilities that have been offset in the statement of financial position but also those assets
and liabilities that would be offset if future events (e.g. bankruptcy or termination of contracts) were to
arise. The amendment has no impact on the Consolidated Financial Statements of the Stabilus Group.
IFRS 13: Fair Value Measurement
IFRS 13 provides a revised and standardized definition of fair value and related application guidance
as well as an extensive disclosure framework. It replaces fair value measurement guidance that was
previously dispersed throughout IFRSs. However, the measurement and disclosure requirements set out
under IFRS 13 do not apply to IFRS 2 and IAS 17. Fair value is defined as an exit price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market partici-
pants at the measurement date. The standard includes a fair value hierarchy already included in IFRS 7
that prioritizes the inputs to valuation techniques used to measure fair value in relation to observable
prices in active markets. However, the revised definition has no material effect on the valuation of
assets and liabilities in the Consolidated Financial Statements of the Stabilus Group. Additional disclo-
sures required by application of IFRS 13 are provided in the relevant Notes.
Amendment to IAS 12: Deferred Taxes: Recovery of Underlying Assets
The amendment provides an exception to the general measurement principle of deferred tax assets and
liabilities in respect of investment property measured using the fair value model in accordance with
IAS 40. Under the exception, the measurement of deferred tax assets and liabilities is based on a rebuttable
presumption that the carrying amount of the investment property will be recovered entirely through
sale. The presumption can be rebutted only if the investment property is depreciable and held within a
business model whose objective is to consume substantially all the asset’s economic benefits over
the life of the asset. Therefore, the presumption cannot be rebutted in respect of the land component
of investment property as it is a non-depreciable asset. The amendment has no impact on the Consoli-
dated Financial Statements of the Stabilus Group.
IAS 19: Employee Benefits (Revised 2011)
The first-time adoption of IAS 19 (revised 2011), Employee Benefits, had a material effect in the
reporting period. The Group has previously used the corridor method, which is no longer permitted
under the revised IAS 19. As a result, actuarial gains and losses have a direct effect on the Consoli-
dated Statement of Financial Position and lead to an increase in provision for pensions and similar
obligations and a reduction in equity. Going forward, the Group’s profit for the period will remain free
from the effects of actuarial gains and losses, which will be recognized directly in other comprehensive
income. The amendments to IAS 19, Employee Benefits, must be applied retrospectively in financial
statements for annual periods beginning on or after January 1, 2013. The Group has adjusted the fig-
ures for the comparative period as well as for the opening balance of the comparative balance for
effects arising from application of the revised version of IAS 19. The following table sets out the effects
of the application of IAS 19 on the line items of the Consolidated Statement of Financial Position as of
57
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND September 30, 2014, September 30, 2013 and October 1, 2012. The effects on the Consolidated State-
ment of Comprehensive Income, i.e. the effects on other comprehensive income, for the fiscal year
2014 and 2013 are disclosed in the Note 21 below.
IAS 19 (revised) effects on the consolidated statement of financial position
T _ 018
I N € T H O U S A N D S
Other reserves
Total equity
Pension plans and similar obligations
Deferred tax liabilities
Total liabilities
Sept 30, 2014
Sept 30, 2013
Oct 1, 2012
(8,752)
(8,752)
12,503
(3,751)
8,752
(2,307)
(2,307)
3,296
(989)
2,307
(1,635)
(1,635)
2,336
(701)
1,635
Improvements to IFRSs (2011): Collection of Amendments to International Financial
Reporting Standards
As part of the Annual Improvement Project, amendments to five IFRSs were made. With the adaptation
of the wording of individual IFRS a clarification of existing regulations is to be achieved. In addition,
there are changes that affect the accounting, the recognition, valuation and the notes. Affected are the
standards IAS 1, IAS 16, IAS 32, IAS 34 and IFRS 1. The amendments have no material impact on the
Consolidated Financial Statements of the Stabilus Group.
IFRIC 20: Stripping Costs in the Production Phase of a Surface Mine
In surface mining operations, entities may find it necessary to remove mine waste materials to gain
access to mineral ore deposits. This waste removal activity is known as ‘stripping’. There can be two
benefits accruing to the entity from the stripping activity: Usable ore that can be used to produce
inventory and improved access to further quantities of material that will be mined in future periods.
IFRIC 20 considers when and how to account separately for these two benefits arising from the strip-
ping activity, as well as how to measure these benefits both initially and subsequently. IFRIC 20 only
deals with waste removal costs that are incurred in surface mining activity during the production phase
of the mine (‘production stripping costs’). IFRIC 20 has no impact on the consolidated financial state-
ments of the Stabilus Group.
58
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS S TA N DA R D S A N D I N T E R P R E TAT I O N S I S S U E D B U T N OT Y E T A D O P T E D
Standards and interpretations issued and endorsed by the EU
T _ 019
IFRSs issued but not yet adopted:
S TA N D A R D / I N T E R P R E TAT I O N
IFRS 10
IFRS 11
IFRS 12
Consolidated Financial Statements
Joint Arrangements
Disclosure of Interests in Other Entities
Amendments to IFRS 10, 11, 12
Transition Guidance
Separate Financial Statements
IAS 27 (2011)
IAS 28 (2011)
Effective date
Effective date
stipulated by IASB
stipulated by EU
January 1, 2013
January 1, 2014
January 1, 2013
January 1, 2014
January 1, 2013
January 1, 2014
January 1, 2013
January 1, 2014
January 1, 2013
January 1, 2014
Investments in Associates and Joint Ventures
January 1, 2013
January 1, 2014
Amendments to IFRS 10,
IFRS 12 and IAS 27
Investment Entities
January 1, 2014
January 1, 2014
Amendment to IAS 32
Offsetting Financial Assets and Liabilities
January 1, 2014
January 1, 2014
Amendment to IAS 36
Recoverable Amount Disclosures for Non-Financial Assets
January 1, 2014
January 1, 2014
Amendment to IAS 39
Novation of Derivatives and Continuation of Hedge Accounting
January 1, 2014
January 1, 2014
IFRIC 21
Levies
January 1, 2014
June 17, 2014
The effective date presented above is the date of mandatory application in annual periods beginning on or after that date.
IFRS 10: Consolidated Financial Statements, Amendments to IAS 27 Separate Financial
Statements
IFRS 10 replaces the portion of IAS 27 that addresses the accounting for consolidated financial state-
ments and the issues raised in SIC 12 resulting in SIC 12 being withdrawn. It does not change consoli-
dation procedures, but creates a new and broader definition of control than under the current IAS 27.
The new standard defines that an entity controls an investee when it has power over the investee, is
exposed to variable returns from its involvement and also has the ability to use its power over the
investee to affect the amount of the investor’s returns. IFRS 10 will not have any impact on future
financial statements of the Stabilus Group.
IFRS 11: Joint Arrangements, Amendments to IAS 28 Investments in Associates and Joint
Ventures
IFRS 11 replaces IAS 31 and SIC 13 and changes the accounting for joint arrangements by moving
from three categories under IAS 31 to the two categories: joint operation and joint venture. According
to this new classification, the structure of the joint arrangement is not the only factor to be considered
when classifying a joint arrangement. Under the new standard, it is also required to consider whether
a separate vehicle exists and, if so, the legal form of the separate vehicle, the contractual terms and
conditions, other facts and circumstances. IAS 28 was amended to include the application of the equity
method to investments in joint ventures. IFRS 11 and the amendments to IAS 28 will not have any
impact on future financial statements of the Stabilus Group.
59
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND IFRS 12: Disclosure of Interests in Other Entities
The new standard contains more extensive qualitative and quantitative disclosure requirements, which
include disclosure of e.g. (a) summarized financial information for each subsidiary with a material
non-controlling interest, for each individually material joint venture and associate, (b) significant judg-
ments used by management in determining control, joint control, significant influence, and the type of
joint arrangement, and (c) nature of the risks associated with an entity’s interests in unconsolidated
structured entities, and changes to those risks. Given the group structure of today, IFRS 12 will lead to
extended disclosures in future financial statements of the Stabilus Group.
Amendments to IFRS 10, 11, 12: Transition Guidance
IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of
Interests in Other Entities are effective for annual periods beginning on or after January 1, 2014. The
standards are based on a general principle of retrospective application on adoption. Depending on the
extent of comparative information provided in the financial statements, the amendments simplify the
transition and provide additional relief from disclosures that could have been onerous. As the Stan-
dards IFRS 10 – 12 will not have any impact on future financial statements of the Stabilus Group, the
amendments to these standards will also not have any impact.
IAS 27 (2011): Separate financial statements
The Standard includes the provisions on separate financial statements that are left after the control
provisions of IAS 27 have been included in the new IFRS 10. The Standard contains accounting and
disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity
prepares separate financial statements. The Standard requires an entity preparing separate financial
statements to account for those investments at cost or in accordance with IFRS 9 Financial Instru-
ments. Considering the current circumstances of the Group, IAS 27 will not have any impact on future
financial statements of the Stabilus Group.
IAS 28 (2011): Investments in Associates and Joint Ventures
In the future, accounting for joint ventures and the mandatory application of the equity method for
joint ventures will be in line with the provisions of the renamed IAS 28 (revised in 2011). Given the
group structure of today, the Standard will not have any impact on future financial statements of the
Stabilus Group as there are no joint ventures within the Group.
Amendments to IFRS 10, 12 and IAS 27: Investment Entities
The amendments apply to investments in subsidiaries, joint ventures and associates held by a reporting
entity that meets the definition of an investment entity. The key amendments include:
• “Investment entity” is defined in IFRS 10;
• An investment entity must meet three elements of the definition and consider four typical charac-
teristics in order to qualify as an investment entity;
• An entity must consider all facts and circumstances, including its purpose and design, in making its
assessment;
• An investment entity must measure its investment in another controlled investment entity at fair value;
• A non-investment entity parent of an investment entity is not permitted to retain the fair value
accounting that the investment entity subsidiary applies to its controlled investees.
60
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS The Amendments to the Standards will not have any impact on future financial statements of the
Stabilus Group.
Amendment to IAS 32: Offsetting Financial Assets and Financial Liabilities
The amendments to IAS 32 clarify that an entity has a legally enforceable right to set-off if that right
is not contingent on a future event and enforceable both in the normal course of business and in the
event of default, insolvency or bankruptcy of the entity and all counterparties. It further states that
gross settlement is equivalent to net settlement if and only if the gross settlement mechanism has fea-
tures that eliminate or result in insignificant credit and liquidity risk and process receivables and payables
in a single settlement process or cycle. The amendments are to be applied retrospectively. The amend-
ments to IAS 32 will not have any impact on future financial statements of the Stabilus Group.
Amendments to IAS 36: Recoverable Amount Disclosures for Non-Financial Assets
The amendments clarify the disclosure requirements in respect of fair value less costs of disposal.
IAS 36 Impairment of Assets required disclosure of information about recoverable amount of impaired
assets if that amount was based on fair value less costs to sell. Accordingly, an entity was required to
disclose the recoverable amount for each cash-generating unit for which the carrying amount of good-
will and intangible assets with indefinite useful lives allocated to that unit was significant, compared
to the entity’s total carrying amount of goodwill and intangible assets with indefinite useful lives. This
requirement has been deleted by the amendment. In addition, two disclosure requirements were added:
• Additional information about the fair value measurement of impaired assets when the recoverable
amount is based on fair value less costs of disposal.
•
Information about the discount rates that have been used when the recoverable amount is based
on fair value less costs of disposal using a present value technique.
The Group is currently evaluating the impact of these amendments on its consolidated financial
statements.
Amendments to IAS 39: Novation of Derivatives and Continuation of Hedge Accounting
The amendments provide exceptions to the requirement to discontinue hedge accounting in certain
circumstances in which there is a change in counterparty to a hedging instrument in order to achieve
clearing for that instrument. The amendment covers novations that arise as a consequence of laws or
regulations, or the introduction of laws or regulations where the parties to the hedging instrument
agree that one or more clearing counterparties replace the original counterparty to become the new
counterparty to each of the parties that did not result in changes to the terms of the original derivative
other than changes directly attributable to the change in counterparty to achieve clearing. All of the
above criteria must be met to continue hedge accounting under this exception. For novations that do
not meet the criteria for the exception, entities have to assess the changes to the hedging instrument
against the derecognition criteria for financial instruments and the general conditions for continuation
of hedge accounting. The amendment has no impact on the Consolidated Financial Statements of the
Stabilus Group.
61
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND IFRIC 21: Levies
Levies are defined as outflows of resources embodying economic benefits by government on entities
in accordance with legislation. The interpretation clarifies that an entity recognizes a liability for a levy
when the activity that triggers payment occurs. The levy liability is accrued progressively only if the
activity that triggers payment occurs over a period of time. For a levy that is triggered upon reaching a
minimum threshold, no liability is recognized before the specified minimum threshold is reached. IFRIC 21
will not have any impact on future financial statements of the Group.
3 Accounting policies
R E V E N U E
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be measured reliably. Revenue is measured at the fair value of the consid-
eration received, excluding discounts, rebates, and other sales taxes or duty. Revenue from the sale of
goods is recognized when the significant risks and rewards of ownership of goods have passed to the
customer, a price is agreed upon or can be determined and when the payment is probable. Revenue
from a contract to provide services is recognized according to the stage of completion, if the amount of
the revenue can be measured reliably and it is probable that the economic benefits from the business
will flow to the Group.
C O S T O F S A L E S
Cost of sales comprises the cost of the conversion of products sold as well as the purchase costs of
sold merchandise. In addition to the directly attributable material and production costs, it also includes
indirect production-related overheads like production and purchase management, including deprecia-
tion on production plants and amortization of intangible assets. Cost of sales also includes write-
downs on inventories to the lower net realizable value. Provisions for estimated costs related to prod-
uct warranties are accrued at the time the related sale is recorded.
R E S E A R C H E X P E N S E S A N D N O N - C A P I TA L I Z E D D E V E L O P M E N T E X P E N S E S
Research expenses and non-capitalized development expenses are recognized in profit or loss when
incurred.
S E L L I N G E X P E N S E S
Selling expenses include sales personnel costs and operating sales costs such as for marketing. Ship-
ping and handling costs are expensed within selling expenses when incurred. Fees charged to custom-
ers are shown as sales. Advertising costs (expenses for advertising, sales promotion and other sales-
related activities) are expensed within selling expenses when incurred.
62
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS B O R R O W I N G C O S T S
Borrowing costs are expensed as incurred, unless they are directly attributable to the acquisition, con-
struction or production of a qualifying asset and therefore form part of the cost of that asset.
I N T E R E S T I N C O M E A N D E X P E N S E S
The interest income and expenses include the interest expense from liabilities and the interest income
from the investment of cash. The interest components from defined benefit pension plans and similar
obligations are reported under the personnel expenses.
OT H E R F I N A N C I A L I N C O M E A N D E X P E N S E
The other financial result includes all remaining expenses and income from financial transactions that
are not included in the interest result.
I N C O M E TA X E S
Current income tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. Income tax expenses represent the
sum of taxes currently payable and deferred taxes. The tax currently payable is based on taxable profit
for the period. Taxable profit differs from profit as reported in the consolidated statement of compre-
hensive income because it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The Group’s liability for current
tax is calculated using tax rates that have been enacted by the balance sheet date.
In accordance with IAS 12 deferred taxes are recognized on temporary differences between the carry-
ing amounts and the corresponding tax base of assets and liabilities used in the computation of taxable
income. Deferred tax assets are generally recognized for all deductible temporary differences to the
extent that it is probable that taxable profits will be available against which those deductible tempo-
rary differences can be utilized. Deferred tax assets and deferred tax liabilities are not recognized if the
temporary difference arises from goodwill or from the initial recognition (other than in a business com-
bination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit. Deferred tax assets on tax loss carry-forwards are only recognized if there is sufficient
probability that the tax reductions resulting from them will actually occur. The carrying amount of
deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recov-
ered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax
liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabili-
ties. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.
63
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND G O O D W I L L
Goodwill is determined to have an indefinite useful life. After initial recognition, goodwill is measured
at cost less any accumulated impairment losses. In accordance with IAS 36, the Group tests the good-
will for impairment by comparing its recoverable amount with its carrying amount annually, and when-
ever there is an indication that goodwill may be impaired. For the purpose of impairment testing good-
will acquired in a business combination is allocated at the acqusition date to the cash generating units
(CGU) that are expected to benefit from the synergies of the combination, irrespective of whether
other assets or liabilities of the acquiree are assigned to those units. An impairment of goodwill is rec-
ognized if the recoverable amount of the cash-generating unit is below its carrying amount. Impair-
ment losses are recognized in profit or loss. According to IAS 36, impairment losses recognized for
goodwill are not reversed.
Goodwill impairment is tested at the lowest level within the Group at which goodwill is being man-
aged. In the past this impairment test took place on group level. In the current fiscal year we realigned
our internal reporting structure and identified three operating segments, which are Europe, NAFTA as
well as Asia / Pacific and rest of world (RoW). Goodwill was reallocated to such operating segments
in order to be monitored on the level of the operating segments benefiting from the synergies of the
acquisitions. As a consequence of this reallocation goodwill is now being tested for impairment at the
level of our operating segments which is the lowest level at which goodwill is monitored for internal
management purposes.
OT H E R I N TA N G I B L E A S S E T S
Purchased or internally generated intangible assets are capitalized according to IAS 38, if a future eco-
nomic benefit can be expected from the use of the asset and the costs of the asset can be determined
reliably. Intangible assets acquired separately are measured on initial recognition at cost. The cost of
intangible assets acquired in a business combination is fair value as of the date of acquisition. Follow-
ing initial recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment losses. Internally generated intangible assets, excluding capitalized develop-
ment costs, are not capitalized and expenditure is reflected in profit or loss in the year in which the
expenditure is incurred.
Intangible assets with finite useful lives are amortized on a straight-line basis over the useful eco-
nomic life and assessed for impairment whenever there is an indication that the intangible asset
may be impaired. The estimated useful life and amortization method are reviewed at the end of each
annual reporting period, with the effect of any changes in estimate being accounted for on a pro-
spective basis.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in profit
or loss when the asset is derecognized.
An internally-generated intangible asset arising from development (or from the development phase of
an internal project) is recognized if all of the following have been demonstrated: (1) the technical fea-
64
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS sibility of completing the intangible asset so that it will be available for use or sale; (2) the intention
to complete the intangible asset and use or sell it; (3) the ability to use or sell the intangible asset;
(4) how the intangible asset will generate probable future economic benefits; (5) the availability of
adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and (6) the ability to measure reliably the expenditure attributable to the intangible
asset during its development. The amount initially recognized for internally-generated intangible assets
is the sum of the expenditures incurred from the date when the intangible asset first meets the recog-
nition criteria listed above. Where no internally-generated intangible asset can be recognized, develop-
ment cost is charged to profit or loss in the period in which it is incurred. Subsequent to initial recogni-
tion, internally-generated intangible assets are reported at cost less accumulated amortization and
accumulated impairment losses on the same basis as intangible assets acquired separately.
The following useful lives are used in the calculation of amortization: Software (3 to 5 years), patented
technology (16 years), customer relationships (24 years), unpatented technology (6 to 10 years) and
trade names (18 years).
R E S E A R C H A N D D E V E L O P M E N T E X P E N S E S
Expenditure on research activities is recognized as an expense in the period in which it is incurred.
Development costs are capitalized at cost if the relevant recognition criteria according to IAS 38 are
met. Capitalized development costs comprise all costs directly attributable to the development process.
Capitalized development costs are amortized systematically from the start of production over the
expected product cycle of three to fifteen years depending on the lifetime of the product.
P R O P E R T Y, P L A N T A N D E Q U I P M E N T
Property, plant and equipment is used for business purposes and is measured at cost less accumulated
depreciation and accumulated impairment losses. Such cost includes the cost of replacing part of the
plant and equipment when that cost is incurred, if the recognition criteria are met. The Group develops
and assembles various production equipment internally; the related costs are also capitalized. Depreci-
ation on property, plant and equipment is recorded on a straight-line basis in accordance with its utili-
zation and based on the useful lives of the assets. The residual values, depreciation methods and useful
lives are reviewed annually and adjusted, if necessary. Property in the course of construction for pro-
duction, rental or administrative purposes is carried at cost, less any recognized impairment loss.
Depreciation of these assets, on the same basis as other property assets, commences when the assets
are ready for their intended use. Fixtures and equipment are stated at cost less accumulated deprecia-
tion and any accumulated impairment losses. The gain or loss arising on the disposal or retirement of an
item of property, plant and equipment is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognized in profit or loss.
Systematic depreciation is primarily based on the following useful lives: Buildings (40 years), machinery
and equipment (5 to 10 years) and other equipment (5 to 8 years).
65
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND L E A S I N G
Leases comprise all arrangements that transfer the right to use a specified asset for a stated period of
time in return for a payment, even if the right to use that asset is not explicitly described in an arrange-
ment. Leases are classified as either finance or operating. In accordance with the regulations under
IAS 17 on accounting for leases, economic ownership is attributed to the lessee if it bears substantially
all of the risks and rewards associated with ownership (finance lease). If the criteria for a finance lease
are fulfilled, assets and liabilities are recognized at the commencement of a lease term at fair value or
the lower present value of the minimum lease payments. Assets are depreciated on a straight-line basis
over the estimated useful life of the asset or shorter term of the lease. The discounted payment obliga-
tions resulting from the future leasing instalments are recognized under other non-current liabilities.
Lease payments resulting from finance leases are divided into principal payments and interest payments.
Lease and rent payments resulting from operating leases are recognized as an expense in the consoli-
dated statement of comprehensive income. Future burdens under operating lease relationships are
disclosed under other financial obligations. Operating lease payments are recognized as an expense in
profit or loss on a straight line basis over the lease term. Operating leases refer to the leasing of office
equipment.
I M PA I R M E N T O F N O N - F I N A N C I A L A S S E T S
Stabilus assesses at each reporting date whether there are indications that an asset may be impaired.
If such indications exist or if annual impairment testing is required (for instance, for goodwill and
development cost unter construction), Stabilus estimates the recoverable amount of the asset. The
recoverable amount is determined for each individual asset, unless an asset generates cash inflows
that are not largely independent of those from other assets or groups of assets (cash-generating units).
The recoverable amount is the higher of its fair value less cost of disposal and its value in use. Stabilus
determines the recoverable amount as fair value less cost of disposal and compares this with the carry-
ing amounts (including goodwill). The fair value is measured by discounting future cash flows using a
risk-adjusted interest rate. The future cash flows are estimated on the basis of the operative planning
(five-year-window). Periods not included in the business plans are taken into account by applying a
residual value which considers a growth rate of 1.0%. If the fair value less cost of disposal cannot be
determined or is lower than the carrying amount, the value in use is calculated. If the carrying amount
exceeds the recoverable amount, an impairment loss is recognized in the amount of the difference.
The calculation of the fair value less cost of disposal and the value in use is most sensitive to the fol-
lowing assumptions: (1) Gross margins are based on average values achieved in the last two years
adopted over the budget period for anticipated efficiency improvements. (2) Discount rates reflect the
current market assessments of the risks of the cash generating unit. The rate was estimated based on
the average percentage of a weighted average cost of capital for the industry. (3) Estimates regarding
the raw materials price developments are obtained by published indices from countries in which the
resources are mainly bought. Forecast figures (mainly in Europe and the US) and past price develop-
ments have been used as an indicator for future developments. (4) Management notices that the
Group’s position continues to strengthen, as customers shift their purchases to larger and more stable
66
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS companies. Therefore there is no need for any doubt regarding the assumption of market share.
(5) Revenue growth rates are estimated based on published industry research.
An assessment for assets other than goodwill is made at each reporting date to determine whether
there is any indication that impairment losses recognized in earlier periods no longer exist or may have
decreased. In this case, Stabilus would record a partial or entire reversal of the impairment loss.
I N V E N TO R I E S
Inventories are valued at the lower of cost and net realizable value using the average cost method.
Production costs include all direct cost of material and labor and an appropriate portion of fixed and
variable overhead expenses. Net realizable value is the estimated selling price for inventories less all
estimated costs of completion and costs necessary to make the sale. Borrowing costs for the produc-
tion period are not included. Provisions are set up on the basis of the analysis of stock moving and/or
obsolete stock.
F I N A N C I A L I N S T R U M E N T S
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or an equity instrument of another entity. Financial instruments recorded as financial assets or
financial liabilities are generally reported separately. Financial instruments are recognized as soon as
the Stabilus Group becomes a party to the contractual provisions of the financial instrument. Financial
instruments comprise financial receivables or liabilities, trade accounts receivable or liabilities, cash
and cash equivalents and other financial assets or liabilities.
Financial instruments are initially measured at fair value. For the purpose of subsequent measurement,
financial instruments are allocated to one of the categories defined in IAS 39 “Financial Instruments:
Recognition and Measurement”. The measurement categories within the meaning of IAS 39 relevant
for Stabilus Group are loans and receivables, financial assets at fair value through profit or loss and
financial liabilities measured at amortized costs.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Examples include trade accounts receivable and loans originated by
the Group. After initial recognition, loans and receivables are subsequently carried at amortized cost
using the effective interest method less impairment losses. Gains and losses are recognized in the con-
solidated earnings when the loans and receivables are derecognized or impaired. Interest effects from
using the effective interest method are similarly recognized in profit or loss. For the accounting of pur-
chase or sale of financial assets, Stabilus uses the settlement date. Loans and receivables bearing no or
lower interest rates compared to market rates with a maturity of more than one year are discounted.
F I N A N C I A L A S S E T S
In addition to financial instruments assigned to a measurement category, financial assets also include
cash and cash equivalents. Cash and cash equivalents consist primarily of cash on hand, cheques and
67
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND deposits at banks. The Group considers all highly liquid investments purchased with an original matu-
rity of three months or less to be cash equivalents. Cash and cash equivalents correspond with the
classification in the consolidated statement of cash flows. Interest received on these financial assets is
generally recognized in profit or loss applying the effective interest method. Dividends are recognized
in profit or loss when legal entitlement to the payment arises.
In the second quarter of fiscal 2014 the Group started a sale of receivables programm (factoring).
Trade accounts receivable amounting to €20.2 million were sold to factor.
I M PA I R M E N T O F F I N A N C I A L A S S E T S
At each reporting date the carrying amounts of the financial assets, except those measured at fair
value through profit or loss, are investigated to assess whether objective evidence of impairment (such
as the debtor's inability to meet its current obligations or significant changes in the technological, eco-
nomic, legal or the market environment of the debtor) exists. For equity instruments a significant or
prolonged decline in fair value is considered to be objective evidence for impairment. Stabilus has
defined criteria for the significance and duration of a decline in fair value.
Loans and receivables
If there is objective evidence that an impairment loss on assets carried at amortized cost has been
incurred, the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows (excluding future expected credit losses that have
not been incurred) discounted at the financial asset’s original effective interest rate (i.e. the effective
interest rate computed at initial recognition). The carrying amount of the asset is reduced through use
of an allowance account. The amount of the loss is recognized in profit or loss. If, in a subsequent
period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognized, the previously recognized impairment loss is
reversed, to the extent that the carrying value of the asset does not exceed its amortized cost at the
reversal date. Any subsequent reversal of an impairment loss is recognized in profit or loss. In relation
to trade accounts receivable, a provision for impairment is made when there is objective evidence (such
as the probability of insolvency or significant financial difficulties of the debtor) that the Group will be
unable to collect all of the amounts due under the original terms of the invoice. The carrying amount of
the receivable is reduced through use of an allowance account. Impaired debts are derecognized when
they are assessed as uncollectible.
D E R I VAT I V E F I N A N C I A L I N S T R U M E N T S
The Group does not have any derivative financial instruments apart from the derivatives embedded in
the bond indenture which was concluded on June 7, 2013. Embedded derivatives are separated from
the host contract, which is not measured at fair value through profit and loss, if the economic characteris-
tics and risks of the embedded derivative are not closely related to the economic characteristics and
risks of the host contract. Separable embedded derivatives are measured at fair value at initial recogni-
tion and at each subsequent reporting date. The fair value of embedded derivatives is calculated using
a standard option pricing model. For the valuation, the credit spread used is calibrated such that the
model reproduces the current market price quoted on the Luxembourg Stock Exchange (Bourse de Lux-
68
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS embourg) at the respective valuation date. Derivatives are presented as assets if their fair value is posi-
tive and as liabilities if the fair value is negative. Following initial recognition, changes in the fair value
of derivative financial instruments are recognized in profit and loss.
F I N A N C I A L L I A B I L I T I E S A N D E Q U I T Y I N S T R U M E N T S
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangement.
E Q U I T Y I N S T R U M E N T S
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct
issue costs.
F I N A N C I A L L I A B I L I T I E S
Financial liabilities primarily include notes, trade accounts payable, other financial liabilities and in the
previous year also equity upside-sharing instruments (EUSIs).
Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include notes as well as equity upside-sharing instru-
ments (EUSIs) which comprise profit participating loans (PPLs) including a mezzanine warrant instru-
ment. The naming is due to their highly subordinated nature. Nonetheless, they constitute “financial
liabilities” and not “equity instruments” in the sense of IAS 32.
After initial recognition the financial liabilities are subsequently measured at amortized cost applying
the effective interest method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the amortization process.
Financial liabilities at fair value through profit or loss
As of September 30, 2014 and 2013 the Group does not measure any financial liabilities at fair value
through profit or loss.
P E N S I O N S A N D S I M I L A R O B L I G AT I O N S
The contributions to our pension plans are recognized as an expense when the entity consumes the
economic benefits arising from the services provided by the employees in exchange for employee bene-
fits. For defined benefit pension plans the projected unit credit method is used to determine the pres-
ent value of a defined benefit obligation, the current service cost and any past service cost.
For the valuation of defined benefit plans, differences between actuarial assumptions used and actual
developments as well as changes in actuarial assumptions result in actuarial gains and losses, which
have a direct impact on the consolidated statement of financial position and on other comprehensive
income.
69
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND OT H E R P R O V I S I O N S
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that the Group will be required to settle the obligation, and a reliable esti-
mate can be made of the amount of the obligation. All cost elements that are relevant flow into the
measurement of other provisions - in particular those for warranties and potential losses on pending
transactions. Non-current provisions with a residual term of more than one year are recognized at bal-
ance sheet date with their discounted settlement amount. The amount recognized as a provision is the
best estimate of the consideration required to settle the present obligation at the balance sheet date,
taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured
using the cash flows estimated to settle the obligation, its carrying amount is the present value of
those cash flows. When some or all of the economic benefits required to settle a provision are expected
to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
A restructuring provision is recognized when the Group has developed a detailed formal plan for the
restructuring and has raised a valid expectation in those affected that it will carry out the restructuring
by starting to implement the plan or announcing its main features to those affected by it. The measure-
ment of a restructuring provision includes only the direct expenditures arising from the restructuring,
which are those amounts that are both necessarily entailed by the restructuring and not associated
with the ongoing activities of the entity.
Termination benefits are granted if an employee is terminated before the normal retirement age or if
an employee leaves the company voluntarily in return for the payment of a termination benefit. The
Group records termination benefits if it is demonstrably committed, without realistic possibility of with-
drawal, to a formal detailed plan to terminate the employment of current employees or if it is demon-
strably committed to pay termination benefits if employees leave the company voluntarily.
Provisions for warranties are recognized at the date of sale of the relevant products, at the manage-
ment’s best estimate of the expenditure required to settle the Group’s obligation.
70
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS 4 Revenue
The Group’s revenue developed as follows:
Revenue by region (location of Stabilus company)
I N € T H O U S A N D S
Europe
NAFTA
Asia / Pacific and rest of world
Revenue
Revenue by region (location of customer)
I N € T H O U S A N D S
Europe
NAFTA
Asia / Pacific and rest of world
Revenue
Revenue by markets
I N € T H O U S A N D S
Automotive
Gas spring
Powerise
Industrial
Swivel chair
Revenue
Group revenue results from sales of goods.
T _ 020
Year ended Sept 30,
2014
267,271
176,817
63,245
507,333
2013
244,629
157,908
57,566
460,103
T _ 021
Year ended Sept 30,
2014
250,280
166,146
90,907
507,333
2013
230,221
150,035
79,847
460,103
T _ 022
Year ended Sept 30,
2014
340,804
255,023
85,781
142,279
24,250
507,333
2013
298,068
242,728
55,340
136,856
25,179
460,103
71
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND 5
Cost of sales, research and development, selling and
administrative expenses
Expenses by function
T _ 023
I N € T H O U S A N D S
Capitalized development cost
Personnel expenses
Material expenses
Depreciation and amortization
Other
Total
I N € T H O U S A N D S
Capitalized development cost
Personnel expenses
Material expenses
Depreciation and amortization
Other
Total
Year ended Sept 30, 2014
Cost of sales
–
(107,093)
(239,206)
(25,012)
(16,426)
Research &
development
expenses
12,899
(12,374)
(4,769)
(9,750)
(6,297)
(387,737)
(20,291)
Selling expenses
Administrative
expenses
–
–
Total
12,899
(12,745)
(18,908)
(151,120)
(7,663)
(3,826)
(14,469)
(38,703)
(2,255)
(1,522)
(9,878)
(253,893)
(40,110)
(47,070)
(32,563)
(479,294)
Year ended Sept 30, 2013
Cost of sales
–
(100,612)
(201,412)
(26,182)
(21,499)
Research &
development
expenses
13,814
(11,603)
(3,326)
(8,780)
(7,678)
(349,705)
(17,573)
Selling expenses
Administrative
expenses
–
–
Total
13,814
(11,797)
(17,033)
(141,045)
(7,203)
(3,841)
(16,092)
(38,933)
(2,294)
(1,859)
(28)
(214,235)
(40,662)
(45,297)
(21,214)
(427,425)
Selling expenses include shipping and handling cost amounting to €18,122 thousand (PY: €18,202
thousand). Other expenses exclude recharges to other functions. Administrative personnel expenses
include all Koblenz second level managers, as well as all functional heads globally.
The expense items in the statement of comprehensive income include following personnel expenses.
Personnel expenses
I N € T H O U S A N D S
Wages and salaries
Compulsory social security contributions
Pension cost
Other social benefits
Personnel expenses
72
T _ 024
Year ended Sept 30,
2014
(105,683)
(28,360)
(13,423)
(3,654)
2013
(99,323)
(27,066)
(12,631)
(2,025)
(151,120)
(141,045)
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS The Company allocated an amount of €4,259 in the prior year from compulsory social security contri-
butions to pension costs resulting from changes in the set up in the ERP data collection in the German
entities to show a more preciously differentiation of those items.
Compulsory contributions to social pension insurance are included in the line item pension cost.
The following table shows the Group’s average number of employees.
Number of employees
Wage earners
Salaried staff
Trainees and apprentices
Average number of employees
6 Other income
Other income
I N € T H O U S A N D S
Foreign currency translation gains
Gains on sale / disposal of assets
Income from the release of other accruals
Miscellaneous other income
Other income
7 Other expenses
Other expenses
I N € T H O U S A N D S
Foreign currency translation losses
Losses on sale / disposal of tangible assets
Addition to other provisions
Other expenses
Other expenses
Year ended Sept 30,
2014
3,134
836
85
4,055
Year ended Sept 30,
2014
3,360
38
10
2,604
6,012
T _ 025
2013
2,845
789
78
3,712
T _ 026
2013
2,746
617
336
2,355
6,054
T _ 027
Year ended Sept 30,
2014
(2,577)
(100)
(147)
(31)
2013
(3,365)
(60)
(7)
(104)
(2,855)
(3,536)
73
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND Year ended Sept 30,
2014
35
6,034
5,714
4,576
1,092
17,451
T _ 028
2013
210
–
2,761
1,396
1,096
5,463
T _ 029
Year ended Sept 30,
2014
(31,647)
–
(6,720)
(66)
(342)
2013
(26,459)
(7,154)
(11,935)
(233)
(744)
(38,775)
(46,525)
8 Finance income
Finance income
I N € T H O U S A N D S
Interest income on loans and financial receivables
Net foreign exchange gain
Gains from changes in carrying amount of financial assets
Gains from changes in fair value of derivative instruments
Other interest income
Finance income
9 Finance costs
Finance costs
I N € T H O U S A N D S
Interest expense on financial liabilities
Net foreign exchange loss
Loss from changes in carrying amount of EUSIs
Interest expenses finance lease
Other interest expenses
Finance costs
10
Income tax expense
Income taxes comprise current taxes on income (paid or owed) in the individual countries and deferred
taxes. The tax rates which are applicable on the reporting date are used for the calculation of current
taxes. Tax rates for the expected period of reversal, which are enacted or substantively enacted at
the reporting date, are used for the deferred taxes. Deferred taxes are recognized as tax expenses or
income in the statements of comprehensive income, unless they relate to items directly recognized in
equity. In these cases the deferred taxes are also recognized directly in equity.
74
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS Income tax expense
I N € T H O U S A N D S
Current income taxes
Deferred taxes
Tax income / (expense)
The respective local rates have been used to calculate the deferred taxes. A tax rate of 30% has been
used for group purposes. The current income taxes comprise prior year taxes amounting to €495 thou-
sand (PY: €(2,849) thousand).
The actual tax income of €78 thousand deviates in the amount of €3,040 thousand from the expected
tax expense of €(2,962) thousand that results from applying the group income tax rate 30% to the
annual earnings of the Group before income taxes.
Tax expense reconciliation (expected to actual)
I N € T H O U S A N D S
Income / (loss) before income tax
Expected tax income / (expense): 30%
Prior year taxes
Tax effect of non-deductible expenses
Valuation allowance interest carry-forward
Tax-free income
Tax audit reserve
Non-capitalized deferred taxes on domestic losses
Additions / deductions due to trade tax
Effect of divergent tax rates
Utilization of non-capitalized losses / interest carried forward
Reversal of valuation allowance DTA on net operating loss
Other tax effects
Actual income tax income / (expense)
Tax charge in %
T _ 030
Year ended Sept 30,
2014
(10,522)
10,600
2013
(10,373)
228
78
(10,145)
T _ 031
Year ended Sept 30,
2014
9,872
(2,962)
495
(2,317)
6,952
–
(460)
44
(663)
(833)
–
(504)
325
78
2013
(5,866)
1,760
(2,849)
(2,227)
(6,711)
1,469
(460)
28
(502)
(1,375)
184
480
57
(10,145)
(0.8)%
(172.9)%
75
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND T _ 032
Total
(50,586)
(4,951)
(755)
(734)
330
3,829
1,886
DTL
(50,776)
(8,232)
(975)
(956)
(3)
(2,532)
–
(63,474)
(50,981)
5,140
–
(58,334)
(50,981)
The tax effect of non-deductible expenses mostly includes the effect of German and US non-deducti-
ble expenses. The tax effect due to non-recognition of deferred tax assets includes the valuation
allowance for the current tax loss carry-forwards. The tax effect of non-capitalized deferred taxes on
domestic losses is calculated with the local tax rates on the basis of the negative earnings before
taxes (EBTs) of the respective companies.
The deferred tax assets (DTA) and deferred tax liabilities (DTL) in respect of each type of the temporary
difference and each type of unused tax losses are as follows:
Deferred tax assets and liabilities
Sept 30, 2014
Sept 30, 2013
I N € T H O U S A N D S
Intangible assets
Property, plant & equipment
Inventories
Receivables
Other assets
Provisions and liabilities
Tax losses
Subtotal
Netting
Total
DTA
188
3,166
329
236
39
10,130
16,176
30,264
DTL
Total
(50,925)
(8,786)
(999)
(808)
(134)
(4,458)
–
(50,737)
(5,620)
(670)
(572)
(95)
5,672
16,176
(66,110)
(35,846)
(22,345)
22,345
–
7,919
(43,765)
(35,846)
DTA
190
3,281
220
222
333
6,361
1,886
12,493
(5,140)
7,353
Deferred tax assets and deferred tax liabilities have been offset if they relate to income taxes levied by
the same tax authorities and if there is a right to offset current tax assets against current tax liabilities.
As of September 30, 2014, the Group has unused tax loss carry-forwards of €34,545 thousand (PY:
€22,839 thousand). The following table provides a detailed overview of the tax loss carry-forwards and
the expiration dates.
76
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS Tax loss carry-forwards
T _ 033
I N € T H O U S A N D S
Germany
Spain
Romania
Total
I N € T H O U S A N D S
Germany
Spain
Romania
Total
Tax loss
carry-forward
1,959
4,226
28,360
34,545
Tax loss
carry-forward
1,959
9,092
11,788
22,839
Tax rate
30.2%
28.0%
16.0%
Tax rate
30.2%
28.0%
16.0%
Year ended Sept 30, 2014
Deferred tax
asset (gross)
Valuation
allowance
Deferred tax
asset (net)
Expiration date
592
1,183
4,538
6,313
(592)
(1,183)
–
–
Indefinite
Indefinite
–
4,538 Within 5 years
(1,775)
4,538
Year ended Sept 30, 2013
Deferred tax
asset (gross)
Valuation
allowance
Deferred tax
asset (net)
Expiration date
592
2,546
1,886
5,023
(592)
(2,546)
–
–
Indefinite
Indefinite
–
1,886 Within 5 years
(3,137)
1,886
The increase of the tax loss carry-forward in Romania results from the merger of the Romanian entities.
The amount recognized as a deferred tax asset is calculated under consideration of the actual corpo-
rate planning and its utilization within the planning period.
Interest carry-forwards in Romania and USA are not considered, as it is not likely that these carry-
forwards will be utilized. Interest carry-forwards in Germany amounting to €41,252 thousand are
calculated under consideration of a discussed new financing structure with an interest rate at 2.5%.
Deferred tax assets on interest carry-forwards are recognized in an amount of €11,000 thousand,
taking into account the utilization within the next five years.
11 Earnings per share
Following the shareholder resolution dated May 5,2014, the corporate form of the Company was
changed from S.à r.l. (société à responsabilité limitée) to S.A. (société anonyme) and the number of
shares outstanding was reduced from 501,250,001 to 17,700,000.
On May 27, 2014 3,023,256 new shares were issued.
The weighted average number of shares used for the calculation of earnings per share in the fiscal
years ended September 30, 2014 and 2013 is set out in the following table. For the comparative
period the number of shares was adjusted retrospectively according to IAS 33.64, i.e. the number of
shares of the new corporate S.A. (société anonyme) was used.
77
ANNUAL REPORT 2014 NotesCONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND Weighted average number of shares
D AT E
October 1, 2012
September 30, 2013
October 1, 2013
May 27, 2014
September 30, 2014
Number of days
Transaction
Change
Total shares
T _ 034
Total shares
(time-weighted)
365
238
17,700,000
17,700,000
17,700,000
17,700,000
17,700,000
11,541,370
127 Capital increase
3,023,256
20,723,256
7,210,558
20,723,256
18,751,927
The earnings per share for the fiscal years ended September 30, 2014 and 2013 were as follows:
Earnings per share
Profit / (loss) attributable to shareholders of the parent (in € thousands)
Weighted average number of shares
Earnings per share (in €)
Basic and diluted earnings per share are calculated by dividing the profit attributable to the sharehold-
ers of the Company by the weighted average number of shares outstanding.
T _ 035
Year ended Sept 30,
2014
10,086
2013
(15,938)
18,751,927
17,700,000
0.54
(0.90)
78
ANNUAL REPORT 2014Notes CONSOLIDATED FINANCIAL STATEMENTS 12 Property, plant and equipment
Property, plant and equipment are presented in the following table.
NOTES
Property, plant
and equipment
I N € T H O U S A N D S
Gross value
Land,
equivalent
rights to
real property
Buildings
and land
improve-
ments
Technical
equipment
and
machinery
Other
tangible
equipment
Construc
tion in progress
Balance as of Sept 30, 2012
10,884
28,132
Foreign currency difference
Additions
Disposals
Reclassifications
Balance as of Sept 30, 2013
Foreign currency difference
Additions
Disposals
Reclassifications
(46)
52
(22)
–
10,868
119
–
–
–
(757)
2,079
(71)
290
29,673
1,094
1,459
–
245
95,584
(3,251)
3,100
(2,362)
3,688
96,759
4,138
6,222
(1,333)
13,754
Balance as of Sept 30, 2014
10,987
32,471
119,540
23,658
(926)
2,147
(999)
1,835
25,715
1,347
4,601
(2,648)
1,568
30,583
13,220
(208)
13,058
–
(5,841)
20,229
228
8,950
(83)
(15,602)
13,722
Notes
T _ 036
Total
171,478
(5,188)
20,436
(3,454)
(28)
183,244
6,926
21,232
(4,064)
(35)
207,303
Accumulated depreciation
Balance as of Sept 30, 2012
Foreign currency difference
Depreciation expense
Disposals
Reclassifications
Balance as of Sept 30, 2013
Foreign currency difference
Depreciation expense
Disposals
Reclassifications
Balance as of Sept 30, 2014
Carrying amount
Balance as of Sept 30, 2013
Balance as of Sept 30, 2014
–
–
–
–
–
–
–
–
–
–
–
(3,993)
(35,605)
(10,946)
(819)
(51,363)
354
2,281
(1,763)
(14,888)
30
14
1,957
(184)
756
(5,094)
747
185
–
–
–
–
3,391
(21,745)
2,734
15
(5,358)
(46,439)
(14,352)
(819)
(66,968)
(423)
(1,555)
–
–
(2,911)
(13,852)
1,321
–
(1,069)
(4,838)
2,633
–
–
–
–
–
(4,403)
(20,245)
3,954
–
(7,336)
(61,881)
(17,626)
(819)
(87,662)
10,868
10,987
24,315
25,135
50,320
57,659
11,363
12,957
19,410
12,903
116,276
119,642
Property, plant and equipment includes assets resulting from two finance lease contracts with a carry-
ing amount of €3,197 thousand as of September 30, 2014 (PY: €3,747 thousand), of which €2,059
thousand (PY: €2,543 thousand) relate to a leasing agreement concluded in 2008, and €1,138 thou-
79
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
sand (PY: €1,204 thousand) relate to a real estate finance lease agreement signed in December 2010
by Orion Rent Imobiliare S.R.L., Bucharest, prior to the Stabilus Group taking the majority of the company.
Contractual commitments for the acquisition of property, plant and equipment amount to €3,755
thousand (PY: €2,441 thousand). Typically these have been secured by a bank guarantee or an
in-depth check of the relevant supplier.
The total depreciation expense for tangible assets is included in the consolidated statement of compre-
hensive income in the following line items:
Depreciation expense for property, plant and equipment
T _ 037
I N € T H O U S A N D S
Cost of sales
Research and development expenses
Selling expenses
Administrative expenses
Depreciation expense
Year ended Sept 30,
2014
(18,517)
(714)
(294)
(720)
2013
(19,759)
(713)
(285)
(988)
(20,245)
(21,745)
Prepayments by the Stabilus Group for property, plant and equipment and intangible assets of €158
thousand (PY: €144 thousand) are included in other non-current assets.
13 Goodwill
The first-time consolidation of Stable II S.à r. l., Luxembourg as of April 8, 2010, resulted in goodwill
of €51 million and the first-time consolidation of Orion Rent Imobiliare S.R.L, Bucharest, Romania
resulted in goodwill of €396 thousand. These acquisitions resulted in a total goodwill of €51,458 thou-
sand (PY: €51,458 thousand). With the start of segment reporting in fiscal year 2014, goodwill was
allocated to the operating segments based on their relative fair values. As such €27,787 thousand
have been allocated to Europe, €13,379 thousand to NAFTA and €10,292 thousand to Asia / Pacific
and rest of world (RoW). In prior years the goodwill of €51,458 thousand had been allocated to the
Group, as the goodwill was monitored on group level.
The value in use for each cash generating unit as the smallest identifiable group of assets that gener-
ates cash inflows that are largely independent of the cash inflows from other assets or other groups of
assets is measured by discounting the future cash flows generated from the continuing use of the unit
and was based on the following key assumptions: The underlying cash flow forecasts are based on the
five-year medium term plan (“MTP”) approved by the Management Board. The cash flow planning takes
into account price agreements based on experience and anticipated efficiency enhancements as well as
average sales growth of approximately 7.8% for Europe, 5.3% for NAFTA and 20.8% for Asia / Pacific
and rest of world (PY: 8.1% for Group) on compound average based on the strategic outlook. While
the overall economic outlook is very volatile, the Group believes that its market-orientated approach
80
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
and leading edge products and services allow for some revenue growth. Cash flows after the five-year
period were extrapolated by applying a 1% (PY: 1%) growth rate. This growth rate was based on the
historic development of worldwide GDP as published by the WTO (2.9%), net of average inflation as
published by the ECB (1.9%). The discount rate applied to cash flow projections is 8.8% for Europe,
9.3% for NAFTA and 9.2% for Asia / Pacific and rest of world (PY: 9.6% for Group). The pre-tax dis-
count rates are 11.5% for Europe, 13.6% for NAFTA and 12.0% for Asia / Pacific and rest of world
(PY: 13.1% for Group).
Group management believes that the overall economic situation and the position of the Group have
improved since the Group was acquired on April 8, 2010. The Group planning is based on the follow-
ing economic assumptions:
• The business plan used to determine the purchase price and the valuations in April 2010 is viewed
as achievable in the current economic environment.
• Since April 2010 the overall economic climate for automotive is seen more positively, which should
support the Group’s revenue plan.
• The significant debt reduction as a result of the refinancing and the acquisition by Servus HoldCo in
fiscal year 2010 has substantially improved key customer confidence in Stabilus’ long term partner-
ship concept. This has resulted in additional orders, also for products with a longer life cycle hori-
zon like Powerise (electric tail gate opening system). Supplier confidence and credit insurer confi-
dence have improved and will potentially have a positive effect on the Group’s cash needs in the
medium term.
The following table shows the required changes to selected key figures required for the respective
recoverable amounts to equal it’s carrying amount. In management's view this change is not reasona-
bly possible.
Goodwill sensitivity analysis
T _ 038
I N P E R C E N T
Discount rate (post-tax)
Budgeted Gross margin reduction to plan
Sustainable growth rate after 5 year period
Sept. 30, 2014
Change required for carrying amount to equal
recoverable amount
Europe
9.5
(6.0)
(12.8)
NAFTA
11.0
(6.6)
(100.0)
Asia / Pacific
and RoW
8.8
(7.2)
(100.0)
81
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
14 Other intangible assets
Other intangible assets are presented in the following table.
Intangible assets
T _ 039
Develop-
ment cost
under
construction
Develop-
ment cost
Software
Patents
Customer
relation-
ship
Tech-
nology
Trade
name
Total
I N € T H O U S A N D S
Gross value
Balance as of Sept 30, 2012
47,465
15,111
3,606
1,271
83,683
58,132
13,246
222,514
Foreign currency difference
Additions
Disposals
(280)
3,100
–
(211)
10,714
–
Reclassifications
2,641
(2,758)
Balance as of Sept 30, 2013
52,926
22,856
Foreign currency difference
454
400
Additions
Disposals
3,934
10,027
–
–
Reclassifications
11,583
(12,054)
(67)
362
(109)
130
3,922
94
433
(26)
479
(6)
3
–
–
–
–
–
–
–
–
–
–
–
–
–
–
(564)
14,179
(109)
13
1,268
83,683
58,132
13,246
236,033
20
–
–
27
–
–
–
–
–
–
–
–
–
–
–
–
968
14,394
(26)
35
Balance as of Sept 30, 2014
68,897
21,229
4,902
1,315
83,683
58,132
13,246
251,404
Accumulated amortization
Balance as of Sept 30, 2012
(14,620)
Foreign currency difference
Amortization expense
Impairment loss
Disposals
103
(6,876)
(1,227)
–
Balance as of Sept 30, 2013
(22,620)
Foreign currency difference
Amortization expense
Impairment loss
Disposals
(218)
(8,280)
(776)
–
Balance as of Sept 30, 2014
(31,894)
Carrying amount
–
–
–
–
–
–
–
–
–
–
–
(1,796)
(939)
(8,717)
(13,695)
(1,840)
(41,607)
35
(1,051)
–
109
6
(61)
–
–
–
–
–
144
(3,487)
(5,478)
(736)
(17,689)
–
–
–
–
–
–
(1,227)
109
(2,703)
(994)
(12,204)
(19,173)
(2,576)
(60,270)
(87)
(1,051)
–
26
(19)
(57)
–
–
–
–
–
(324)
(3,487)
(5,479)
(735)
(19,089)
–
–
–
–
–
–
(776)
26
(3,815)
(1,070)
(15,691)
(24,652)
(3,311)
(80,433)
Balance as of Sept 30, 2013
30,306
22,856
Balance as of Sept 30, 2014
37,003
21,229
1,219
1,087
274
245
71,479
38,959
10,670
175,763
67,992
33,480
9,935
170,971
During the fiscal year, costs of €13,961 thousand (PY: €13,814 thousand) were capitalized for develop-
ment projects that were incurred in the product and material development areas. Systematic amortization of
capitalized internal development projects amounted to €8,280 thousand (PY: €6,876 thousand). The bor-
82
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
T _ 040
Year ended Sept 30,
2014
(6,495)
(9,036)
(3,532)
(802)
2013
(6,422)
(8,067)
(3,555)
(872)
rowing costs capitalized during the period amounted to €1,062 thousand (PY: €1,065 thousand).
A capitalization rate of 7.75% (PY: 7.75%) was used to determine the amount of borrowing costs.
The total amortization expense and impairment loss for intangible assets is included in the consoli-
dated statements of comprehensive income in the following line items:
Amortization expense for intangible assets
I N € T H O U S A N D S
Cost of sales
Research and development expenses
Selling expenses
Administrative expenses
Amortization expense (including impairment loss)
(19,865)
(18,916)
Amortization expenses on development costs include impairment losses of €776 thousand (PY: €1,227
thousand) due to the withdrawal of customers from the respective projects. The impairment loss is
included in the research and development expenses.
Contractual commitments for the acquisition of intangible assets amount to €1,388 thousand (PY:
€562 thousand).
15 Other financial assets
Other financial assets
Sept 30, 2014
Sept 30, 2013
I N € T H O U S A N D S
Current
Non-current
Loan to shareholder
Derivative instruments
Other miscellaneous
Other financial assets
–
15,422
2,882
18,304
–
–
–
–
Total
–
15,422
2,882
18,304
Current
Non-current
–
77,134
10,845
–
–
–
T _ 041
Total
77,134
10,845
–
10,845
77,134
87,979
83
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
L O A N TO S H A R E H O L D E R
Using the proceeds from issuance of the senior secured notes in June 2013, the Stabilus Group pro-
vided a €80,014 thousand loan to its sole shareholder. According to the upstream loan agreement
dated June 7, 2013 and an amendment agreement dated June 28, 2013, the upstream shareholder
loan was to mature on June 7, 2018. No interest accrued or was payable on or in respect of this loan.
On the maturity date, a premium of 61.051% was due and payable on outstanding principal amount of
€80,014 thousand. All or part of the outstanding principal amount, including an early prepayment pre-
mium specified in the agreement, could be repaid prior to the maturity date. The loan to shareholder
was measured at amortized cost according to the effective interest method. The effective interest
was 11.52%.
As part of the IPO reorganization, the upstream shareholder loan was derecognized, following the dis-
tribution of Company’s equity interest in Servus II (Gibraltar) Limited which held the upstream share-
holder loan receivable.
D E R I VAT I V E I N S T R U M E N T S
Derivative financial instruments comprise solely fair values of early redemption options embedded in
the indenture which was concluded on June 7, 2013. The increase in fair value of these embedded
derivatives in the fiscal year ended September 30, 2014 amounting to €4,576 thousand (PY: €1,396
thousand) is included in the Group’s income statement as finance income, since derivatives are meas-
ured at fair value through profit and loss upon initial recognition. See also Note 8.
The increase (decrease) in the interest rates by 0.5% would lead to an increase (decrease) of the fair
value of embedded derivatives by €1,240 thousand (€1,411 thousand). The increase (decrease) in the
interest rates by 1.0% would lead to an increase (decrease) of the fair value of embedded derivatives
by €2,327 thousand (€3,045 thousand).
OT H E R M I S C E L L A N E O U S
Other miscellaneous financial assets relate to the sale of receivables program that was started in
March 2014.
84
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
T _ 042
Total
6,514
1,036
1,449
5,405
Sept 30, 2014
Sept 30, 2013
Current
Non-current
Total
Current
Non-current
–
158
–
944
2,643
1,333
2,679
3,419
6,514
892
1,449
4,525
–
144
–
880
2,643
1,175
2,679
2,475
8,972
1,102
10,074
13,380
1,024
14,404
16 Other assets
Other assets
I N € T H O U S A N D S
VAT
Prepayments
Deferred charges
Other miscellaneous
Other assets
Non-current prepayments comprise prepayments on property, plant and equipment.
17
Inventories
Inventories
I N € T H O U S A N D S
Raw materials and supplies
Finished products
Work in progress
Merchandise
Inventories
T _ 043
Sept 30, 2014
Sept 30, 2013
24,519
10,455
8,639
5,927
49,540
23,809
10,053
7,511
4,690
46,063
Inventories that are expected to be turned over within twelve months amount to €49,540 thousand
(PY: €46,063 thousand). Write-downs on inventories to net realizable value amount to €5,705 thou-
sand (PY: €3,421 thousand). In the reporting period raw materials, consumables and changes in
finished goods and work in progress recognized as cost of sales amounted to €239,206 thousand
(PY: €201,412 thousand).
The Stabilus Group’s prepayments for inventories amounting to €1,063 thousand (PY: €675 thousand)
are included in prepayments in other current assets.
85
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
18 Trade accounts receivable
Trade accounts receivable include the following items:
Trade accounts receivable
I N € T H O U S A N D S
Trade accounts receivable
Allowance for doubtful accounts
Trade accounts receivable
T _ 044
Sept 30, 2014
Sept 30, 2013
58,068
(1,571)
56,497
69,362
(1,586)
67,776
The Group provides credit in the normal course of business and performs ongoing credit evaluations on
certain customers’ financial condition, but generally does not require collateral to support such
receivables. The Group establishes an allowance for doubtful accounts based upon factors such as the
credit risk of specific customers, historical trends and other information.
The allowances for doubtful accounts developed as follows:
Allowance for doubtful accounts
T _ 045
I N € T H O U S A N D S
Allowance for doubtful accounts as of beginning of fiscal year
Foreign currency differences
Increase in the allowance
Decrease in the allowance
Sept 30, 2014
Sept 30, 2013
(1,586)
(1,863)
(38)
(232)
285
73
(83)
287
Allowance for doubtful accounts as of fiscal year-end
(1,571)
(1,586)
Trade accounts receivable decreased in the fiscal year ended September 30, 2014 mainly due to the
sale of receivables to a factor.
19 Current tax assets
Current tax assets are measured at the amount expected to be recovered from the taxation authorities
when the amount already paid in respect of current and prior periods exceeds the amount due for
those periods.
20 Cash and cash equivalents
Cash and cash equivalents includes cash on hand and in banks, i.e. liquid funds and demand deposits.
As of September 30, 2014, it amounted to €33,494 thousand (PY: €21,819 thousand). Cash in banks
earned interest at floating rates based on daily bank deposit rates.
86
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS 21 Equity
The development of the equity is presented in the statement of changes in equity.
Issued capital
Issued capital as of September 30, 2014 amounted to €207 thousand (Sept 30, 2013: €5,013 thou-
sand) and was fully paid in. It is divided into 20,723,256 shares with a nominal value of €0.01 each.
According to the shareholder resolution dated May 5, 2014, the issued capital of the Company was
reduced by €4,836 thousand. The Company’s issued capital was brought from an amount of €5,013
thousand (divided into 501,250,001 shares having a nominal value of €0.01) to an amount of €177
thousand (divided into 17,700,000 shares having a nominal value of €0.01) by way of cancellation of
483,550,001 shares and allocation of an aggregate amount of €4,836 thousand to a newly created
distributable reserve of the Company.
On May 27, 2014, the number of shares was increased by 3,023,256 shares (having a nominal value
of €0.01) leading to an increase in the issued capital by €30 thousand. The total proceeds from this
capital increase amounted to €65,000 thousand; a share premium of €64,970 thousand is included in
capital reserves.
The authorized capital of the Company is set at €315 thousand represented by maximum of 31,500 thou-
sand shares, each with a nominal value of €0.01.
Capital reserves
Capital reserves as of September 30, 2014 amounted to €73,091 thousand (Sept 30, 2013: €74,403
thousand) and contained premiums received for the issuance of shares of €64,970 thousand, a distrib-
utable reserve of €4,836 thousand and other capital contributions by owners of €3,286 thousand. The
capital reserves were presented as “additional paid-in capital” in the previous financial statements.
The presentation, i.e. the name, of this balance sheet item was changed to “capital reserves” since it is
more appropriate for the nature and composition of this line item.
Prior to the IPO and immediately following the IPO the Group structure was reorganized (hereinafter
also referred to as “IPO reorganization”). As a result, the equity upside-sharing instruments (EUSIs)
and the upstream loan to the shareholder were extinguished and are no longer recognized on the
Group’s balance sheet. As part of this reorganization, and following the transfer of the external EUSIs
to the shareholder, the owners contributed €10,020 thousand to the capital reserves of the Group which,
considering the opening balance of €74,403 thousand and a distribution of €81,137 thousand, results
in a closing balance of €3,286 thousand.
The Company’s equity interest in Servus II (Gibraltar) Limited which held the upstream shareholder
loan receivable with a carrying amount of €81,137 thousand was distributed to the shareholder Servus
Group Holdco S.à r.l., Luxembourg. This distribution resulted in a dividend per share of €3.92. In the
prior year a cash dividend of €150 thousand was distributed to the shareholder which equals a divi-
dend per share of €0.01.
Notes
87
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
Retained earnings
Retained earnings as of September 30, 2014 amounted to €7,920 thousand (Sept 30, 2013: €(991)
thousand) and included Group’s net result in the fiscal year 2014 amounting to €10,086 thousand and
expenses for the initial public offering of €(1,175) which were recognized directly in equity.
Other reserves
Other reserves comprise all foreign currency differences arising from the translation of the financial
statements of foreign operations and unrealized actuarial gains and losses following the first-time
adoption of revised IAS 19. The following table shows the changes in other reserves recognized in
equity through other comprehensive income as well as the income tax recognized in equity through
other comprehensive income:
Other comprehensive income / (expense)
I N € T H O U S A N D S
Unrealized gains / (losses) from foreign
currency translation
Unrealized actuarial gains / (losses)
Other comprehensive income / (expense)
for the period
I N € T H O U S A N D S
Unrealized gains / (losses) from foreign
currency translation
Other comprehensive income / (expense)
for the period
Unrealized actuarial gains / (losses) 1)
Other comprehensive income / (expense)
for the period adjusted
1) Effects from first-time adoption of IAS 19 (revised 2011)
Year ended Sept 30, 2014
Before tax
Tax (expense)
benefit
Net of tax
Non-controlling
interest
(422)
(9,207)
–
2,763
(422)
(6,444)
(9,629)
2,763
(6,866)
–
–
–
Year ended Sept 30, 2013
Before tax
Tax (expense)
benefit
Net of tax
Non-controlling
interest
3,145
3,145
(960)
2,185
–
–
289
289
3,145
3,145
(671)
2,474
–
–
–
–
T _ 046
Total
(422)
(6,444)
(6,866)
Total
3,145
3,145
(671)
2,474
88
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
22 Financial liabilities
The financial liabilities comprise following items:
Financial liabilities
T _ 047
Sept 30, 2014
Sept 30, 2013
I N € T H O U S A N D S
Current
Non-current
Total
Current
Non-current
Total
Notes
EUSIs
5,789
256,556
262,345
7,663
311,797
319,460
–
–
–
–
3,300
3,300
Financial liabilities
5,789
256,556
262,345
7,663
315,097
322,760
S U P E R S E N I O R R E V O LV I N G C R E D I T FA C I L I T Y
On June 7, 2013, Stabilus (former Servus HoldCo) entered into a super senior revolving credit facility
agreement with, among others, J.P. Morgan Limited and Commerzbank Aktiengesellschaft as mandated
lead arrangers, J.P. Morgan Europe Limited as facility agent and security agent, JP Morgan Chase Bank,
and / or its affiliates and Commerzbank Aktiengesellschaft as lenders, providing for a committed multi-
currency facility of €25.0 million and with an option for one or more uncommitted facilities up to
€15.0 million additional facilities. The revolving facility matures on March 7, 2018, i. e. four years and
nine months after the date of issuance of senior secured notes and the conclusion of the super senior
revolving credit facility agreement. The initial margin interest on the loans utilized under the revolving
credit facility was 3.75% per annum and from June 2014 on it is a percentage rate determined in
accordance with a net leverage ratio-related margin grid (ratchet) with a range from 2.75% to 3.75%
per annum.
An ancillary facility can be made available under this revolving credit facility, containing e.g. overdraft
facilities, guarantees, bonding, documentary or standby letter of credit facilities, short-term loan facilities,
derivatives or foreign exchange facilities subject to the satisfaction of certain conditions precedent. A
fronting fee of 0.125% p.a. is payable on the amount of any letter of credit or bank guarantee issued
under the revolving credit facility.
During the availability period on the available but unused commitments under this credit facility, a
commitment fee of 30% of the applicable margin is payable in arrears on the last day of each succes-
sive three-month period.
The revolving credit facility is guaranteed by Stabilus (former Servus HoldCo) and other subsidiary
guarantors defined in the agreement. It is secured by the same collateral that secures the senior
secured notes issued on June 7, 2013. The agreement contains certain financial covenants, including
a requirement of a minimum EBITDA.
As of September 30, 2014, the Group has no outstanding financial liabilities under the revolving
credit facility.
89
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
S E N I O R S E C U R E D N OT E S
On June 7, 2013, a Group entity, Servus Luxembourg Holding S.C.A., Luxembourg, issued €315 million
in aggregate principal amount of senior secured notes due on June 15, 2018. The notes were issued
under an indenture among, inter alios, the issuer, Servus HoldCo S.à r.l., Servus Sub, Servus Luxem-
bourg S.à r.l., the issuer’s subsidiaries that guarantee the notes, Servus Group HoldCo II S.à r.l., Blitz
F10-acht-drei-drei GmbH & Co. KG, Citibank, N. A., London Branch, as trustee, and J.P. Morgan Europe
Limited, as security agent. Interest on the notes accrues at the rate of 7.75% per annum and will be
payable semi-annually in arrears on June 15 and December 15, commencing on December 15, 2013.
The redemption price at maturity will equal 100% of the principal amount of the notes redeemed.
At any time prior to June 15, 2015, the Group may on any one or more occasions redeem up to 35%
of the aggregate principal amount of the notes, upon not less than 30 nor more than 60 days’ notice
to holders, at a redemption price equal to 107.750% of the principal amount of the notes redeemed,
plus accrued and unpaid interest and additional amounts (if any) to (but not including) the date of
redemption. In addition, at any time prior to June 15, 2015, the Group may on any one or more occa-
sions redeem all or part of the notes, upon not less than 30 and no more than 60 days’ notice, at a
redemption price equal to 100% of the principal amount of the notes redeemed, plus the applicable
premium as of the date of redemption, and accrued and unpaid interest and additional amounts (if
any) to the date of redemption. On or after June 15, 2015, the Group may on any one or more occa-
sions redeem all or part of the notes upon not less than 30 and no more than 60 days’ notice, at the
redemption price of 103.875% in 2015, 101.938% in 2016 and 100.000% in 2017 and thereafter,
plus accrued and unpaid interest and additional amounts (if any) on the notes redeemed, to the appli-
cable date of redemption. Early redemption options were reported as embedded derivatives in
accordance with IAS 39. See also Notes 15 and 31.
The principal amount of the senior secured notes as of September 30, 2014 amounted to €256,123
thousand. It decreased in the third quarter of the fiscal year 2014 from €315,000 thousand to
€256,123 thousand due to early redemption of senior secured notes amounting to €58,877 thousand
on June 5, 2014.
The notes are secured by first-ranking liens over the collateral. The collateral package includes pledg-
ing of shares in the guaranteeing subsidiaries, certain bank account balances, inventory and receivab les
pledges, as well as liens on real estate and intellectual property. As of September 30, 2014, a total of
€199,525 thousand (PY: €198,084 thousand) of financial assets had been pledged as collateral, excluding
values for pledged shares.
The notes are listed on the Official List of the Luxembourg Stock Exchange and admitted for trading on
the Euro MTF Market.
90
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
E Q U I T Y U P S I D E - S H A R I N G I N S T R U M E N T S ( E U S I S )
As part of the IPO reorganization, the equity upside-sharing instruments (EUSIs) were extinguished and
will no longer be recognized on the Group’s balance sheet.
Equity upside-sharing instruments (EUSIs) comprised profit participating loans (PPLs) and a mezzanine
warrant instrument. In conjunction with the financial restructuring of the Stabilus business (closing
April 8, 2010), all non-performing debt instruments, consisting of parts of the senior debt, the mezza-
nine debt, equity tainted loan (ETL) and preferred equity certificates (PEC) were transferred to Servus
HoldCo (predecessor of Stabilus S.A.). The purchase of these debt instruments was reimbursed to the
lenders, represented by the PPL agent (JP Morgan Limited), by issuing profit participating loan instru-
ments by Servus HoldCo, each with a nominal value of €1. In June 2013, the maturity of EUSIs was
extended to the year 2043. The exit could be triggered by the management of Servus HoldCo.
The uniform conditions of these PPL instruments were as follows:
PPL conditions
Principal amount
Maturity
Redemption amount
Fixed-interest rate
Variable interest
Pre-mature call option
€1
June 7, 2043
Outstanding principal amount plus accumulated interest
1% fixed-interest rate on the outstanding principal amount, payable at maturity
The loan entitles owner of the PPL to receive all cash flows which flow to Servus
HoldCo as a result of the underlying instruments, less a margin of 0.12% of each
payment.
Only on exit, which means
(1) a change of control or
(2) the sale or disposal of all or substantially all of the assets of the Group whether
in a single transaction or a series of related transactions or
(3) a flotation or
(4) a refinancing or
(5) a distribution.
Senior EUR PPL:
As underlying instrument, Stable II S.à r.l. as lender and Stable Beteiligungs GmbH concluded a new loan
(Senior EUR loan) with a notional value of €118,374,107.19 and US$14,950,327.44 (maturity: April 8,
2043). Furthermore, Stable II S.à r.l. granted a claim, via other group entities, to Servus HoldCo in form
of a profit-participating loan (senior EUR PPL) with a notional value of €1. Finally, the creditors, repre-
sented by the PPL agent, received a claim to Servus HoldCo in form of a profit-participating loan (Sen-
ior EUR PPL) with a notional value of €1.
Senior USD PPL:
As underlying instrument, Stable II S.à r.l. as lender and Stable HoldCo Inc. concluded a new loan (Sen-
ior USD loan) with a notional value of €9,957,758.21 and US$25,079,622.73 (maturity: April 8, 2043).
Furthermore, Stable II S.à r.l. granted a claim, via other group entities, to Servus HoldCo in form of a
profit-participating loan (Senior USD PPL) with a notional value of €1. Finally, the creditors, represented
T _ 048
91
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
by the PPL agent received a claim to Servus HoldCo in form of a profit-participating loan (Senior USD
PPL) with a notional value of €1.
Mezzanine PPL:
As underlying instrument, Stable II S.à r.l. as lender and Stable Beteiligungs GmbH concluded a new
loan (Mezz Loan) with a principal value of €92,184,426.09 (maturity: April 8, 2043). Furthermore, Sta-
ble II S.à r.l. granted a claim, via other group entities, to Servus HoldCo in form of a profit-participating
loan (Mezzanine PPL) with a notional value of €1. Finally, the creditors, represented by the PPL agent,
received a claim to Servus HoldCo in form of a profit-participating loan (Mezzanine PPL) with a notional
value of €1.
Equity tainted loan (ETL) PPL:
As underlying instrument, the equity tainted loan (ETL) with a notional value of €72,433,267.00 was
sold by the lenders, represented by the security trustee, to Servus HoldCo in return for the payment
of €1. The original ETL was then amended by an agreement between the issuer, Stable II S.à r.l., and
Servus HoldCo. In return for the purchase of the original ETL, the lenders, represented by the PPL
agent, granted Servus HoldCo a profit participating loan (ETL PPL) with a notional value of €1. In June
2013, as part of the group’s refinancing, the ETL PPL receivable was contributed by the shareholder to
Servus II (Gibraltar) Limited.
Preferred equity certificates (PEC) PPL:
As underlying instrument, the interest-free preferred equity certificates (IFPECs) with an aggregated
notional value of €98,067,780.00 were sold by the lenders, represented by the security trustee, to
Servus HoldCo in return for the payment of €1. The IFPECs were then converted by a contract amend-
ment agreement between the issuers of the IFPECs, Stable II S.à r.l. and Servus HoldCo, to PECs. In
return for the purchase of the IFPECS by Servus HoldCo, the lenders, represented by the PPL agent,
received a claim from Servus HoldCo in form of a profit-participating loan (PEC PPL) with a notional
value of €1. In June 2013, as part of the group’s refinancing, the PEC PPL receivable was contributed
by the shareholder to Servus II (Gibraltar) Limited.
Mezzanine warrant instrument:
The mezzanine warrants did not have a nominal value, did not accrue interest and did not have a
maturity date. Payments on the mezzanine warrants would become due upon the occurrence of an exit,
which is not a result of distressed disposal, and are expressed as a percentage of the applicable exit
proceeds. The mezzanine warrants were unsecured and under certain circumstances, there might have
been a turnover between the mezzanine warrant and the other outstanding PPLs described above.
92
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS 23 Other financial liabilities
Other financial liabilities
Sept 30, 2014
Sept 30, 2013
I N € T H O U S A N D S
Current
Non-current
Total
Current
Non-current
Liabilities to employees
Social security contribution
Finance lease obligation
Liabilities to related parties
Other financial liabilities
4,120
1,701
536
3
6,360
–
–
960
–
960
4,120
1,701
1,496
3
7,320
4,519
1,539
1,167
1,661
8,886
–
–
1,472
–
1,472
Finance lease obligation, measured as present value of future minimum lease payments, relates to a
lease contract for a production line in Germany and a real estate lease contract for a production facility
in Romania.
24 Provisions
Provisions
Sept 30, 2014
Sept 30, 2013
I N € T H O U S A N D S
Current
Non-current
Anniversary benefits
Early retirement contracts
Employee-related costs
Environmental protection
Other risks
Legal and litigation costs
Warranties
Other miscellaneous
Provisions
–
–
3,575
730
578
135
2,338
1,195
8,551
295
3,372
–
–
–
–
–
393
4,060
Total
295
3,372
3,575
730
578
135
2,338
1,588
12,611
Current
Non-current
–
–
4,160
915
565
138
6,057
2,073
13,908
551
5,913
–
–
–
–
–
573
7,037
Notes
T _ 049
Total
4,519
1,539
2,639
1,661
10,358
T _ 050
Total
551
5,913
4,160
915
565
138
6,057
2,646
20,945
93
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
The non-current provisions developed as follows:
Changes of non-current provisions
I N € T H O U S A N D S
Balance as of Sept 30, 2012
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2013
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2014
Anniversary
benefits
Early
retirement
Other
Miscellaneous
767
–
(241)
–
25
551
1
(237)
(20)
–
295
9,037
(13)
(3,111)
–
–
5,913
(3)
(2,377)
(161)
–
3,372
602
(29)
–
–
–
573
27
–
(242)
35
393
Discount rate applied ranges from 0.75% to 1.25% (PY: 1.10% to 1.66%).
The development of current provisions is set out in the table below:
Changes of current
provisions
I N € T H O U S A N D S
Balance as of Sept 30, 2012
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2013
Foreign currency differences
Costs paid
Release to income
Additions
Balance as of Sept 30, 2014
Employee-re-
lated costs
Environmental
protection
measures
Other risks
Legal and
litigation
costs
Warranties
4,989
26
(4,183)
–
3,328
4,160
(70)
1,189
(51)
(223)
–
–
915
43
(3,514)
(228)
–
2,999
3,575
–
–
730
891
2
(47)
(367)
87
565
30
–
(17)
–
578
160
(22)
–
–
–
138
(3)
–
–
–
135
7,591
(23)
(1,328)
(1,061)
878
6,057
(103)
(2,241)
(1,485)
110
2,338
Other
Miscella-
neous
2,745
12
(2,745)
(12)
2,073
2,073
(35)
(2,026)
(14)
1,197
1,195
The provision for employee-related expenses comprises employee bonuses and termination benefits.
94
T _ 051
Total
10,406
(42)
(3,352)
–
25
7,037
25
(2,614)
(423)
35
4,060
T _ 052
Total
17,565
(56)
(8,526)
(1,440)
6,366
13,908
(138)
(8,009)
(1,516)
4,306
8,551
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
The provision for environmental protections measures relate to the 1985 vacated former Stabilus Inc
US site in Colmar, PE, USA at the North Penn Area 5. In the meantime this North Penn Area 5 has
been identified by the United States Environmental Protection Agency (EPA) as an area requiring envi-
ronmental remediation. In 2011 the EPA has contacted seven company in the North Penn Area 5 as
potential responsible parties for cost shareing, Stabilus being one of them. The Group is currently una-
ble to develop a reasonable estimate of its share of the ultimate obligation as cost apportionment
method of the EPA and Stabilus insurance reimbursement are unclear at this point in time. As such no
liability for a EPA reimbursement has been reflected in the balance sheet as of September 30, 2014.
An estimated liability for bioremediation has been recorded by the Group in the balance sheet as of
September 30, 2014.
The provision for other risks from purchase and sales commitments represents expected sales
discounts, expected losses from pending deliveries of goods and other sales-related liabilities.
The provision for legal and litigation costs represents costs of legal advice and notary charges as well
as the costs of litigation.
The provision for warranties represents the accrued liability for pending risks from warranties offered
by the Group for their products. The Group issues various types of contractual warranties under which
it generally guarantees the performance of products delivered and services rendered. The Group
accrues for costs associated with product warranties at the date products are sold. Warranty accruals
comprise accruals that are calculated for each individual case.
25 Pension plans and similar obligations
Liabilities for the Group’s pension benefit plans and other post-employment plans comprise the following:
Pension plans and similar obligations
T _ 053
I N € T H O U S A N D S
Principal pension plan
Deferred compensation
Pension plans and similar obligations
1) adjusted according to IAS 19 (revised)
Sept 30, 2014
Sept 30, 20131)
47,877
476
48,353
38,671
452
39,123
95
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
D E F I N E D B E N E F I T P L A N S A N D D E F E R R E D C O M P E N S AT I O N
Defined benefit plan
The Group granted post-employment pension benefits to all employees in Germany who joined the
company prior to January 1, 2006. The level of post-employment benefits is generally based on eligible
compensation levels and / or ranking within the Group hierarchy and years of service. Liabilities for
principal pension plans amounting to €47,877 thousand (PY: €38,671 thousand) result from unfunded
accumulated benefit obligations, which increase being primarily due to lower actuarial interest rates.
As of December 21, 2010, in order to free the Group of future liquidity risks, the Group’s pension poli-
cies for Germany were amended, in which the title earned in the former defined benefit plan is frozen.
Going forward no additional defined benefit titles can be earned. At the same time, the Company
introduced a defined contribution plan in which direct payments to an external insurer are made which
disburdens the group of future cash disbursements.
The weigthed average duration of the defined benefit obligations in the fiscal year 2014 is 16.8 years
(PY: 16.8 years).
Deferred compensation
Deferred compensation included in accrued pension liabilities relates to employees of the former Atecs
Mannesmann companies. Deferred compensation is a form of retirement pay which is financed by the
employees, where, based on an agreement between the Group and the employees, part of their income
is retained by the Group and paid to the respective employees after retirement. The total deferred com-
pensation as of September 30, 2014 amounts to €476 thousand (PY: €452 thousand).
The unfunded status is as follows:
Unfunded status
I N € T H O U S A N D S
Present value of unfunded defined benefit obligations
Less: Fair value of plan assets
Unfunded status
T _ 054
Sept 30, 2014
Sept 30, 2013
48,353
39,123
–
–
48,353
39,123
96
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS The present value of the defined benefit obligation developed as follows:
Present value of defined benefit obligations
I N € T H O U S A N D S
Present value of defined benefit obligations as of beginning of fiscal year
Service cost
Interest cost
Demographic assumptions
Financial assumptions
Experience assumptions
Actuarial (gains) / losses
Pension benefits paid
Present value of defined benefit obligations as of fiscal year-end
1) adjusted according to IAS 19 (revised)
The pension cost in the consolidated statement of comprehensive income includes the following
expenses for defined benefit plans:
Pension cost for defined benefit plans
I N € T H O U S A N D S
Service cost
Interest cost
Pension cost for defined benefit plans
The present value of the defined benefit obligation and the experience adjustments arising on the plan
liabilities are as follows:
Present value of the defined benefit obligation and the experience adjustments
on the plan liabilities
I N € T H O U S A N D S
Sept 30, 2010
Sept 30, 2011
Sept 30, 2012
Sept 30, 2013
Sept 30, 2014
Notes
T _ 055
Year ended Sept 30,
2014
39,123
48
1,382
–
8,292
914
9,206
(1,406)
48,353
20131)
38,066
54
1,459
–
1,232
(308)
924
(1,381)
39,123
Year ended Sept 30,
2014
48
1,382
1,430
T _ 056
2013
54
1,459
1,513
T _ 057
Defined benefit
obligation
Experience
adjustments
38,700
33,081
38,066
39,123
48,353
(533)
(357)
(308)
(213)
914
97
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
Generally, the measurement date for Group’s pension obligations is September 30. The measurement
date for Group’s net periodic pension cost generally is the beginning of the period. Assumed discount
rates, salary increases and long-term return on plan assets vary according to the economic conditions
in the country in which the pension plan is situated.
Following assumptions (measurement factors) were used to determine the pension obligations:
Significant factors for the calculation of pension obligations
T _ 058
I N % P. A .
Discount rate
Salary increases
Pension increases
Turnover rate
Inflation
Sept 30, 2014
Sept 30, 2013
2.40%
0.00%
1.50%
4.00%
1.50%
3.60%
0.00%
1.50%
4.00%
1.50%
The discount rates for the pension plans are determined annually as of September 30 on the basis
of first-rate, fixed-interest industrial bonds with maturities and values matching those of the pension
payments.
S E N S I T I V I T Y A N A LYS I S
If the discount rate were to differ by + 0.5% / – 0.5% from the interest rate used at the balance sheet
date, the defined benefit obligation for pension benefits would be an estimated €3,753 thousand lower
or €4,274 thousand higher. If the future pension increase used were to differ by + 0.2% / – 0.2% from
management’s estimates, the defined benefit obligation for pension benefits would be an estimated
€1,190 thousand higher or €1,146 thousand lower. The reduction / increase of the mortality rates by
2 years results in an increase / deduction of life expectancy depending on the individual age of each
beneficiary. The effects on the DBO as of September 30, 2014 due to a 2 year reduction / increase of
the live expectancy would result in a decrease of €2,020 thousand or an increase of €2,097 thousand.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions,
the same method (present value of the defined benefit obligation calculated with the projected unit
credit method) has been applied as when calculating the post-employment benefit obligation recog-
nized in the Consolidated Statement of Financial Position. Increases and decreases in the discount rate
or the rate of pension progression which are used in determining the DBO do not have a symmetrical
effect on the DBO due to the compound interest effect created when determining the net present value
of the future benefit. If more than one of the assumptions are changed simultaneously, the combined
impact due to the changes would not necessarily be the same as the sum of the individual effects due
to the changes. If the assumptions change at a different level, the effect on the DBO is not necessarily
in a linear relation.
98
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Expected pension benefit payments for the fiscal year 2015 will amount to €1,764 thousand (PY:
€1,620 thousand).
D E F I N E D C O N T R I B U T I O N P L A N S
At Stabilus, the expenses incurred under defined contribution plans are primarily related to govern-
ment-run pension plans. Expenses for these plans in the reporting period amounted to €7,325 thou-
sand (PY: €6,859 thousand).
26 Trade accounts payable
Trade accounts payable amount to €53,724 thousand (PY: €44,977 thousand) as of the end of fiscal
year. The full amount is due within one year. The liabilities are measured at amortized cost. For infor-
mation on liquidity and exchange rate risks for trade accounts payable, please see Note 32.
27 Current tax liabilities
The current tax liabilities relate to income and trade taxes.
28 Other liabilities
The Group’s other liabilities mature within one year. Accordingly, they are disclosed as current liabili-
ties. The following table sets out the breakdown of Group’s other liabilities:
Other current liabilities
I N € T H O U S A N D S
Advanced payments received
Vacation expenses
Other personnel-related expenses
Outstanding costs
Miscellaneous
Other current liabilities
29 Leasing
O P E R AT I N G L E A S E
The Group entered into non-cancellable operating lease for IT hardware, cars and other machinery and
equipment with lease terms of 2 to 6 years. The future minimum lease payments relating to leasing
agreements during the basic rental period when they cannot be terminated are as follows:
Notes
T _ 059
Sept 30, 2014
Sept 30, 2013
456
2,169
5,463
2,764
127
339
2,100
4,727
3,523
184
10,979
10,873
99
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
Operating lease
I N € T H O U S A N D S
within one year
after one year but not more than five years
more than five years
Total
T _ 060
Minimum lease payments in year ended Sept 30,
2014
4,429
11,193
205
15,827
2013
3,849
7,164
189
11,202
The increase in total minimum lease payments in the next five years is primarily due to the expansion
of our rented production facilities in China. Current period expense for operating leases amounts to
€5,205 thousand (PY: €4,870 thousand).
F I N A N C E L E A S E
One lease contract regarding a production line in Germany and one real estate lease contract regard-
ing a production facility in Romania are recorded as finance lease.
Production line:
The Group concluded a sale and leaseback agreement dated September 25, 2008, which results in a
finance lease with a term of 6 years. The agreement contains a purchase option at the end of the con-
tractual period for a value of €100 thousand. The lease commenced on January 1, 2009. The sales price
of the underlying asset, manufacturing equipment, amounts to €5,000 thousand. As of the balance
sheet date, the carrying amount of the underlying asset amounts to €2,059 thousand (PY: €2,543
thousand). The present value is calculated using the Group’s incremental borrowing rate of 7.8% as
per contract date.
The future minimum lease payments and their present value relating to the leasing agreement during
the basic rental period when they cannot be terminated are as follows:
Finance lease of a production line
T _ 061
I N € T H O U S A N D S
within one year
after one year but not later than five years
more than five years
Total
Sept 30, 2014
Sept 30, 2013
Minimum lease
payments (MLP)
Present value
of MLP
Minimum lease
payments (MLP)
Present value
of MLP
350
0
–
350
319
0
–
319
999
350
–
958
319
–
1,349
1,277
100
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
Production facility:
Orion Rent Imobiliare S.R.L, Brasov, entered into a non-cancellable real estate finance lease agreement
on December 31, 2010 (prior to Stabilus Group taking over a controlling interest in this company) with
a term of 144 months prior to the Stabilus Group becoming a controlling shareholder of Orion Rent
Imobiliare S.R.L. The agreement contains a purchase option at the end of the 3 years of contract, for a
purchase price amounting to the capital that remains to be paid up to the expiry of the contract less
early payment fee (between 2.75% and 4.75% of the remaining capital to be paid). The net carrying
amount at the balance sheet date is €1,138 thousand (PY: €1,204 thousand). The lease term started
on January 1, 2011. The leasing fees are settled in euro, but payable in new Romanian lei. They include
a variable component of the total funding cost with 3-month EURIBOR as the reference basis.
Finance lease of a production facility
T _ 062
I N € T H O U S A N D S
within one year
after one year but not later than five years
more than five years
Total
Sept 30, 2014
Sept 30, 2013
Minimum lease
payments (MLP)
Present value
of MLP
Minimum lease
payments (MLP)
Present value
of MLP
191
759
623
185
613
404
192
761
812
186
614
505
1,573
1,202
1,765
1,305
The payments for finance leases in the fiscal year ended September 30, 2014 amounted to €1,191
thousand (PY: €1,792 thousand). No contingent rents have been recognized as an expense during
the period.
30
Contingent liabilities and other financial commitments
C O N T I N G E N T L I A B I L I T I E S
Contingent liabilities are uncertainties for which the outcome has not been determined. If the outcome
is probable and estimable, the liability is shown in the statement of financial position.
In regards to a potential contingent obligation in the EPA Colmar please see Note 24.
G U A R A N T E E S
On October 11, 2005, Stabilus Romania S.R.L., Brasov, (“STRO”) entered into a rental agreement with
ICCO SRL (ICCO) for a production facility with an area of 8.400 square meters for STRO in Brasov,
Romania. The initial rental agreement has a contract period of seven years which has been
extended. STAB Dritte Holding GmbH, Koblenz, merged into Stable Beteiligungs GmbH, Koblenz, a
wholly owned subsidiary of the company, issued a bank guarantee for €600 thousand (PY: €600 thou-
sand), in the event that STRO will be unable to pay. Stabilus GmbH, Koblenz, issued a letter of support for
the event that STRO will be unable to pay.
101
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
On September 22, 2005, Stabilus S. A. de C. V. (“STMX”) entered into a lease agreement with Deutsche
Bank Mexico, S. A., and Kimex Industrial BEN, LLC, for a production facility with an area of 28,952
square meters of land and 5,881 square meters of constructions in Ramos Arizpe, State of Coahuila,
Mexico. The lease agreement has a contract period of 10 years. Stabilus GmbH, Koblenz, issued a letter
of support for the event that STMX will be unable to pay.
The Group entered into a revolving credit facility and a bond indenture. The credit guarantees provided
in these agreements are full down-stream, up-stream and cross-stream given by the guarantors as
defined in these agreements – comprising certain material subsidiaries of the Group – in favor of the
finance parties. The guarantees are subject to limitations, including being limited to the extent that
otherwise the guarantee would amount to unlawful financial assistance and other jurisdiction-specific
tests (e.g. net assets).
Given a normal course of the economic development as well as a normal course of business, manage-
ment believes these guaranties should not result in a material adverse effect for the Group.
OT H E R F I N A N C I A L C O M M I T M E N T S
The nominal value of the other financial commitments as of September 30, 2014 amounted to €20,970
thousand (PY: €14,205 thousand).
Sept 30, 2014
1 to 5 years
more than
5 years
–
11,193
11,193
–
205
205
Sept 30, 2013
1 to 5 years
more than
5 years
–
7,164
7,164
–
189
189
less than
1 year
5,143
4,429
9,572
less than
1 year
3,003
3,849
6,852
T _ 063
Total
5,143
15,827
20,970
Total
3,003
11,202
14,205
Nominal values of other financial commitments are as follows:
Financial commitments
I N € T H O U S A N D S
Capital commitments for tangible and other intangible assets
Obligations under rental and leasing agreements
Total
I N € T H O U S A N D S
Capital commitments for tangible and other intangible assets
Obligations under rental and leasing agreements
Total
102
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
31 Financial instruments
The following table shows the carrying amounts and fair values of the Group’s financial instruments.
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date.
Financial instruments
T _ 064
I N € T H O U S A N D S
Trade accounts receivables
Cash
Loan to shareholder
Derivative instruments
Other miscellaneous
Other financial assets
Total financial assets
Senior secured notes
EUSIs
Financial liabilities
Trade accounts payable
Finance lease liabilities
Liabilities to related parties
Other financial liabilities
Total financial liabilities
Sept 30, 2014
Sept 30, 2013
Measurement
category
acc. to IAS 39 Carrying amount
Fair value Carrying amount
Fair value
LaR
LaR
LaR
FAFV
LaR
LaR / FAFV
FLAC
FLAC
FLAC
FLAC
–
FLAC
FLAC / –
56,497
33,494
–
15,422
2,882
18,304
108,295
262,345
–
56,497
33,494
–
15,422
2,882
18,304
108,295
273,437
–
262,345
273,437
53,724
1,496
3
1,499
53,724
1,521
3
1,524
67,776
21,819
77,134
10,845
–
87,979
177,574
319,460
3,300
322,760
44,977
2,639
1,661
4,300
67,776
21,819
81,018
10,845
–
91,863
181,458
321,624
4,568
326,192
44,977
2,582
1,661
4,243
317,568
328,685
372,037
375,412
Aggregated according to categories in IAS 39:
Loans and receivables (LaR)
92,873
92,873
166,729
170,613
Financial assets at fair value through profit
and loss (FAFV)
Financial liabilities measured at amortized
cost (FLAC)
15,422
15,422
10,845
10,845
316,072
327,164
369,398
372,830
103
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
The following table provides an overview of the classification of financial instruments presented above
in the fair value hierarchy, except for financial instruments with fair values corresponding to the carry-
ing amounts (i.e. trade accounts receivable and payable, cash and other financial liabilities).
Fair value hierarchy of financial instruments
T _ 065
I N € T H O U S A N D S
Financial assets
Loan to shareholder
Derivative instruments
Financial liabilities
Senior secured notes
EUSIs
Finance lease liabilities
I N € T H O U S A N D S
Financial assets
Loan to shareholder
Derivative instruments
Financial liabilities
Senior secured notes
EUSIs
Finance lease liabilities
Sept 30, 2014
Total
Level 11)
Level 22)
Level 33)
–
15,422
–
–
–
15,422
273,437
273,437
–
1,521
–
–
–
–
–
–
–
–
–
1,521
Sept 30, 2013
Total
Level 11)
Level 22)
Level 33)
81,018
10,845
–
–
321,624
321,624
4,568
2,582
–
–
–
81,018
10,845
–
–
–
–
–
4,568
2,582
1) Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical instruments.
2) Fair value measurement based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3) Fair value measurement based on inputs that are not observable market data.
The fair value is the price that would be received to sell an asset or paid to transfer the liability in an
orderly transaction between market participants at the measurement date. The following methods and
assumptions were used to estimate the fair values:
• The fair value of the quoted senior secured notes is based on price quotations at the reporting date.
• The valuation technique used for the determination of unquoted instruments, i.e. the upstream
shareholder loan, the equity upside-sharing instruments (EUSIs) and the obligations under finance
leases, is the discounted cash flow method. The valuation model considers the present value of
expected payments, discounted using a risk-adjusted discount rate depending on the maturity of
the payment. The expected payments are determined by considering contractual redemption pay-
ments and interest payments with the currently agreed interest rate. Significant unobservable
inputs are the risk-adjusted discount rates, which range from 7.5% to 10.1%, and the forecasted
interest payments. Therefore, the fair value would change if the risk-adjusted discount rate or the
interest rate changed.
104
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS • The fair value of embedded derivative instruments is calculated using a standard option pricing
model. For the valuation, the credit spread used is calibrated such that the model reproduces the
current market of the notes quoted on the Luxembourg Stock Exchange at the reporting date.
The finance lease contracts include fixed-interest rates. Therefore, the fair value of finance lease liabili-
ties (categorized as Level 3 in the fair value hierachy table) are not exposed to interest risk through
fluctuation.
The net gains and losses on financial instruments result in the fiscal year ended September 30,
2014 from the currency translation and changes in the estimate of future cash flows of loans and
receivables and financial liabilities measured at amortized cost, as well as gains from changes in fair
value of derivative instruments. They are set out in the Notes 8 and 9. The net foreign exchange gain
(PY: loss) amounted to €6,034 thousand (PY: €(7,154) thousand). The gains from changes in fair
value of derivative instruments amounted to €4,576 thousand (PY: €1,396 thousand). The gains from
changes in carrying amount of financial assets amounted to €5,714 thousand (PY: 2,761 thousand).
Total interest income and expense from financial instruments is reported in the Notes 8 and 9.
The value of the embedded derivatives is effected by the interest of the comparable market instrument
on each potential exercise date and will rise if the relevant interest rate declines and vice versa.
32 Risk reporting
I N T E R N A L R I S K M A N A G E M E N T
The Group employs within the budgeting process an integrated system for the early identification and
monitoring of risks specific to the Group, in order to identify changes in the business environment and
deviations from targets at an early stage and to initiate countermeasures in advance. This includes
monthly short and medium-term analysis of the order intake and the sales invoicing behavior. Control
impulses for the individual companies are derived from this. Customer behavior is ascertained and ana-
lyzed continuously and the information obtained from this serves as an early warning indicator for pos-
sible changes in demand patterns.
In addition, significant KPIs (order intake, sales and EBITDA, staffing level, quality indicators) are
reported monthly by all Group companies and are assessed by Group management.
F I N A N C I A L R I S K S
The Group’s Corporate Treasury function provides services to the business, co-ordinates access to
domestic and international financial markets, and monitors and manages the financial risks relating to
the operations of the Group. These risks include credit risk, liquidity risk and market risk (including cur-
rency risk and fair value interest rate risk).
The Group seeks to minimize the effects of financial risks by using derivative financial instruments to
hedge these exposures wherever useful. The use of financial derivatives is governed by the Group’s pol-
Notes
105
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
icies approved by the Management Board, which provide principles on foreign currency risk, interest
rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the
investment of excess liquidity. The Group does not enter into or trade financial instruments, including
derivative financial instruments, for speculative purposes. The Group does not hold any derivative
financial instruments as of September 30, 2014, apart from the derivatives embedded in the bond
indenture which was concluded on June 7, 2013.
C R E D I T R I S K S
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counter-
parties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of
financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are moni-
tored and the aggregate value of transactions concluded is spread amongst approved counterparties.
Trade accounts receivable consist of a large number of customers, spread across diverse industries and
geographical areas. Credit evaluation is performed on the financial condition of accounts receivable
and, where viewed appropriate, credit guarantee insurance cover is purchased. Besides this, commer-
cial considerations impact the credit lines per customer.
The maximum exposure to credit risk of financial assets is the carrying amount as follows:
Credit risk included in financial assets
T _ 066
I N € T H O U S A N D S
Financial assets
Trade accounts receivable
Derivative instruments
Other miscellaneous
Total
Sept 30, 2014
Neither past
due nor
impaired
< 30 days
30 – 60 days
60 – 90 days 90 – 360 days
> 360 days
Total
48,263
15,422
2,882
66,567
5,930
729
–
–
–
–
5,930
729
–
–
–
–
1,274
301
–
–
–
–
1,274
301
56,497
15,422
2,882
74,801
Sept 30, 2013
I N € T H O U S A N D S
Financial assets
Trade accounts receivable
Loan to shareholder
Derivative instruments
Neither past
due nor
impaired
59,506
77,134
10,845
< 30 days
30 – 60 days
60 – 90 days 90 – 360 days
> 360 days
Total
5,545
618
331
789
987
–
–
–
–
–
–
–
–
–
–
67,776
77,134
10,845
Total
147,485
5,545
618
331
789
987
155,755
106
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
Credit risk of other financial assets of the Group, which comprise cash and cash equivalents, and mis-
cellaneous financial assets, arises from default of the counterparty, with a maximum exposure equal to
the carrying amount of these instruments.
The Group does not have any critical credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The credit risk on liquid funds is limited because the coun-
terparties are banks with high credit-ratings assigned by international credit-rating agencies and also
typically are lenders to the Group. Therefore, credit quality of financial assets which are neither past
due nor impaired is assessed to be good.
L I Q U I D I T Y R I S K S
The Management Board has established an appropriate liquidity risk management framework for the
management of the Group’s short, medium and long-term funding and liquidity management require-
ments. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities by monitoring forecast cash flows at regular intervals.
The following maturities summary shows how cash flows from the Group’s liabilities as of September
30, 2014 will influence its liquidity situation. The summary describes the course of the undiscounted
principal and interest outflows of the financing liabilities and the undiscounted cash outflows of the
trade accounts payable. The undiscounted cash outflows are subject to the following conditions: If the
counterparty can request payment at different dates, the liability is included on the basis of the earliest
payment date. The underlying terms and conditions are described in the Note 22.
Liquidity outflows for liabililties
I N € T H O U S A N D S
2015
2016
2017
2018
2019
after 2019
Total
Senior secured
notes
Finance lease
(19,850)
(19,850)
(19,850)
(269,719)
–
–
(541)
(191)
(190)
(189)
(189)
(623)
Trade accounts
payable
(53,724)
–
–
–
–
–
T _ 067
Total
(74,115)
(20,041)
(20,040)
(269,908)
(189)
(623)
(329,269)
(1,923)
(53,724)
(384,916)
The long-term senior secured notes give planning stability over the next years. At the balance sheet
date, the Group has undrawn committed facilities of €25.0 million (PY: €25.0 million) to reduce liquid-
ity risks.
F I N A N C E M A R K E T R I S K S
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange
rates (see below) and interest rates (see below). As of September 30, 2014, the Group has not entered
107
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
into any derivative financial instruments. The Group monitors closely its exposure to interest rate risk
and foreign currency risk and regularly checks the requirement to enter into a variety of derivative
financial instruments.
Exchange rate risk
Due to its subsidiaries, the Group has significant assets and liabilities outside the Eurozone. These
assets and liabilities are denominated in local currencies. When the net asset values are converted into
euro, currency fluctuations result in period-to period changes in those net asset values. The Group’s
equity position reflects these changes in net asset values. The Group does not hedge against these
structural currency risks.
The Group also has transactional currency exposures which arise from sales or purchases in currencies
other than the functional currency and loans in foreign currencies. In order to mitigate the impact of
currency exchange rate fluctuations for the operating business, the Group continually assesses its expo-
sure and attempts to balance sales revenue and costs in a currency to thus reduce the currency risk.
Besides the balance sheet the Group’s revenue and costs are also impacted by currency fluctuations.
A 1% increase / decrease in value of US dollar compared to euro would lead to an increase / decrease
of EBIT of approximately €0.3 million.
Interest rate risk
The Group is exposed to interest rate risks, which mainly relate to debt obligations, as the Group bor-
rows funds at fixed and to a minor extent at floating interest rates.
The interest rate risk is monitored by using the cash flow sensitivity of the Group’s cash flows due to
floating interest loans. The nominal interest rates of the Stabilus Group’s financial liabilities as of Sep-
tember 30, 2014 are fixed.
An increase / decrease of floating interest rates has an immaterial effect to the interest income and
expense of the Group.
33 Capital management
The Stabilus Group’s capital management covers both equity and liabilities. A further objective is to
maintain a balanced mix of debt and equity.
Due to the broad product range and the activities on global markets, the Stabilus Group generates
under normal economic conditions predictable and sustainable cash flows.
108
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS The equity ratio as of September 30, 2014 is calculated as follows:
Equity ratio
I N € T H O U S A N D S
Equity
Total assets
Equity ratio
1) adjusted according to IAS 19 (revised)
The Stabilus Group is not subject to externally imposed capital requirements.
The ratio of net debt to EBITDA (earnings before interest, taxes, depreciation and amortization), which is
also used and defined in the revolving credit facility agreement, is an important financial ratio (debt ratio)
used in the Stabilus Group. The objective is to reduce the debt ratio in the future. The Stabilus Group there-
fore aims to increase its earnings and to generate cash flows in order to reduce its financial liabilities.
34
Notes to the consolidated statement of cash flows
The statement of cash flows is prepared in compliance with IAS 7. The statement of cash flows of the
Stabilus Group shows the development of the cash flows from operating, investing and financing activ-
ities. Inflows and outflows from operating activities are presented in accordance with the indirect
method and those from investing and financing activities by the direct method.
The cash funds reported in the statement of cash flows comprise all liquid funds, cash balances and
cash at banks reported in the statement of financial position.
Interest payments of €30,113 thousand (PY: €9,177 thousand) are taken into account in the cash
outflows from financing activities. Income tax payments of €7,065 thousand (PY: €5,663 thousand)
are allocated in full to the operating activities area, since allocation to individual business areas is
impracticable.
Notes
T _ 068
Year ended Sept 30,
2014
76,123
520,302
14.6%
20131)
80,331
589,288
13.6%
109
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
35
Segment reporting
The Stabilus Group is organized and managed primarily on a regional level. The three reportable oper-
ating segments of the Group are Europe, NAFTA and Asia / Pacific including the rest of world (RoW).
The product portfolio is largely similar in these three regional segments.
The Group measures the performance of its operating segments through a measure of segment profit
or loss (key performance indicator) which is referred to as “adjusted EBITDA”. Adjusted EBITDA repre-
sents EBITDA (i.e. earnings before interest, taxes, depreciation and amortization), as adjusted by man-
agement primarily in relation to severance, consulting, restructuring, one-time legal disputes and other
non-recurring costs, as well as interest on pension charges.
Segment information for the fiscal years ended September 30, 2014 and 2013 is as follows:
Segment reporting
T _ 069
I N € T H O U S A N D S
External revenue1)
Intersegment revenue1)
Total revenue1)
EBITDA
Depreciation and amortization
Adjusted EBITDA
I N € T H O U S A N D S
External revenue1)
Intersegment revenue1)
Total revenue1)
EBITDA
Depreciation and amortization
Adjusted EBITDA
Europe
NAFTA
Asia / Pacific and RoW
Year ended Sept 30,
Year ended Sept 30,
Year ended Sept 30,
2014
267,271
23,480
290,751
39,591
(19,512)
57,542
2013
2014
2013
244,629
176,817
157,908
28,680
2,519
2,364
273,309
179,336
160,272
45,931
(20,528)
54,573
20,045
(6,175)
22,813
18,520
(6,427)
20,975
2014
63,245
123
63,368
11,669
(1,971)
12,130
2013
57,566
57
57,623
11,406
(1,941)
11,497
Total segments
Other / Consolidation
Stabilus Group
Year ended Sept 30,
Year ended Sept 30,
Year ended Sept 30,
2014
507,333
26,122
533,455
71,305
(27,658)
92,485
2013
460,103
31,101
491,204
75,857
2014
–
(26,122)
(26,122)
–
2013
–
(31,101)
(31,101)
–
2014
507,333
–
507,333
71,305
(28,896)
(12,452)
(11,765)
(40,110)
87,045
–
–
92,485
2013
460,103
–
460,103
75,857
(40,661)
87,045
1) Revenue breakdown by location of Stabilus company (i.e. “billed-from view”).
The EBITDA of operating segment Europe in the fiscal year ended September 30, 2014 included an
impairment loss of €776 thousand (PY: €1,227 thousand). The amounts presented in the column
“Other / Consolidation” above include the elimination of transactions between the segments and cer-
tain other corporate items which are related to the Stabilus Group as a whole and are not allocated to
the segments, e.g. depreciation from purchase price allocations.
110
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Notes
The following table sets out the reconciliation of the total segments’ profit (adjusted EBITDA) to profit
before income tax.
Reconciliation of the total segments’ profit to profit / (loss) before income tax
T _ 070
I N € T H O U S A N D S
Total segments’ profit (adjusted EBITDA)
Other / consolidation
Group adjusted EBITDA
Adjustments to EBITDA
EBITDA
Depreciation and amortization
Profit from operating activities (EBIT)
Finance income
Finance costs
Profit / (loss) before income tax
The adjustments to EBITDA include IPO, bond issuance, tax audit, launch / startup and reorganization
related advisory expenses and pension interest. The information about geographical areas is set out in
the following tables:
Geographical information: revenue by country
I N € T H O U S A N D S
Germany
Romania
Europe
USA
Mexico
NAFTA
Brazil
Australia
New Zealand
South Korea
Japan
China
Asia / Pacific and rest of world
Revenue1)
1) Revenue breakdown by location of Stabilus company (i.e. “billed-from view”)
Year ended Sept 30,
2014
92,485
–
92,485
(21,180)
71,305
(40,110)
31,196
17,451
(38,775)
9,872
2013
87,045
–
87,045
(11,188)
75,857
(40,661)
35,196
5,463
(46,525)
(5,866)
T _ 071
Year ended Sept 30,
2014
232,495
34,776
267,271
80,513
96,305
176,817
7,952
5,476
1,647
10,633
3,931
33,607
63,245
2013
219,564
25,065
244,629
80,222
77,687
157,908
10,242
6,563
1,437
8,921
2,841
27,562
57,566
507,333
460,103
111
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
Geographical information: non-current assets by country
I N € T H O U S A N D S
Luxembourg
Germany
UK
Spain
France
Romania
Gibraltar
Switzerland
Goodwill
Europe
USA
Mexico
Goodwill
NAFTA
Brazil
Australia
New Zealand
South Korea
Japan
China
Goodwill
Asia / Pacific and rest of world (RoW)
Goodwill on group level
Total
Year ended Sept 30,
2014
873
T _ 072
2013
936
159,117
166,836
92
3,595
5
100
3,720
5
18,051
16,746
–
71
27,787
209,591
43,245
27,326
13,379
83,950
2,579
1,083
342
6,623
520
28,193
10,292
49,632
–
–
70
–
188,413
45,079
26,093
–
71,172
2,676
1,091
360
6,024
534
22,793
–
33,478
51,458
343,173
344,521
The non-current assets above exclude financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts.
As disclosed in the table above goodwill has been allocated to our operating segments in the fiscal year 2014.
In the current and in the previous fiscal year, we had two customers who accounted for at least 10%
of our total external revenue. The total revenue with these customers were €54,767 thousand and
€52,506 thousand in the fiscal year ending September 30, 2014 (PY: €53,913 thousand and €46,503
thousand respectively). In both periods such revenue was generated in all three segments.
36
Share-based payment
The variable compensation for the members of the Management Board includes a matching stock pro-
gram. The matching stock program provides for four annual tranches granted each year during the
fiscal year ending September 30, 2014 until September 17, 2017. Participation in the matching stock
program requires Management Board members to invest in shares of the Company. The investment
has generally to be held for the lock-up period.
112
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS As part of the matching stock program A (the “MSP A”) for each share the Management Board invests
in the Company in the specific year (subject to general cap), the Management Board members receive
a certain number of fictitious options to acquire shares in the Company for each tranche of the matching
stock program. The amount of stock options received depends upon a factor to be set by the Supervi-
sory Board annually which will be in a range between 1.0 time and 1.7 times for the outlined timeframe.
Thus, if a Management Board member was buying 1,000 shares under the MSP in the Company, he
would receive 1,000 to 1,700 fictitious options for a certain tranche. The fictitious options are subject
to a lock-up period of four years and may be exercised during a subsequent two-year exercise period.
As part of matching stock program B (the “MSP B”) for each share the Management Board holds in
the Company in the specific year (subject to a general cap), the Management Board members receive a
certain number of fictitious options to acquire shares in the Company for each tranche of the matching
stock program. The amount of stock options received depends upon a factor to be set by the Supervisory
Board annually which will be in a range between 0.0 times and 0.3 times for the outlined timeframe.
Thus, if a Management Board member was holding 10,000 shares under the MSP in the Company, he
would receive 0 to 3,000 fictitious options for a certain tranche. The fictitious options are subject to a
lock-up period of four years and may be exercised during a subsequent two-year exercise period. The
options may only be exercised if the stock price of the Company exceeds a set threshold for the rele-
vant tranche, which the Supervisory Board will determine, and which needs to be between 10% and
50% growth over the base price, which is the share price on the grant date. If exercised, the fictizious
options are transformed into a gross amount equaling the difference between the option price and the
relevant stock price multiplied by the number of exercised fictitious options. The generally limited net
amount resulting from the calculated gross amount is paid out to the Management Board members.
Alternatively, the Company may decide to buy shares in an amount equaling the net amount in order
to settle the exercised options. The maximum gross amounts resulting from the exercise of the fictitious
options of one tranche in general is limited in amount. Reinvestment of IPO proceeds from previous
equity programs are not taken into account for MSP A.
As of the date of this report no stock options have been granted according to this program.
37 Auditor’s fees
Auditor’s fees
I N € T H O U S A N D S ( E X C L U D I N G VAT )
Audit fees
Audit related fees
Tax fees
Other fees
Total
Notes
Year ended Sept 30,
2014
618
929
–
–
T _ 073
2013
530
839
–
–
1,547
1,369
113
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Notes
For fiscal year ended September 30, 2014, a global fee (excluding VAT) of €618 thousand (PY: 530 thou-
sand) was agreed for the audit of the consolidated and annual financial statements of the Stabilus
entities. These fees are included in the Group’s administrative expenses.
In addition, KPMG Luxembourg S.à r.l., Luxembourg, and other member firms of the KPMG network,
billed the Group audit-related fees amounting to, excluding VAT, €929 thousand (PY: €839 thousand),
which relate to the initial public offering of the Stabilus shares (PY: issuance of senior secured notes).
38 Related party relationships
In accordance with IAS 24, persons or entities that control or are controlled by the Stabilus Group shall
be disclosed, unless they are included in consolidation as a consolidated entity.
The disclosure obligation under IAS 24 furthermore extends to transactions with persons who exercise
a significant influence on the financial and business policies of the Stabilus Group, including close fam-
ily members or interposed entrepreneurs. A significant influence on the financial and business policies
of the Stabilus Group can hereby be based on a shareholding of 20% or more in Stabilus, a seat on the
management board of Stabilus or another key position.
Following the IPO on May 23, 2014 the shareholder structure of Stabilus changed. Related parties of
the Stabilus Group in accordance with IAS 24 primarily comprise the prior to the IPO sole shareholder
Servus Group HoldCo II and the Stabilus Group management which also holds an investment in the
Company.
To fund working capital requirements of the Company and Stable II S.à r.l. in the previous years, the
shareholder Servus Group HoldCo II provided a working capital loan amounting to €1,661 thousand
as of September 30, 2013. This loan was fully redeemed in the third quarter of fiscal year 2014. As of
September 30, 2014 the Group has a liability to Servus II (Gibraltar) Limited amounting to €3 thou-
sand; as of September 30, 2013 Servus II (Gibraltar) Limited was part of the Stabilus Group. See also
Note 23.
The loan the Group has provided to the shareholder Servus Group HoldCo II in fiscal year 2013
amounting to €80,014 thousand (principal amount) was derecognized from the Group’s balance sheet
following the distribution of the Company’s equity interest in Servus II (Gibraltar) Limited which was
the holder of the upstream shareholder loan receivable. See also Note 15.
39
Remuneration of key management personnel
The key management personnel are the members of the management board Dietmar Siemssen (CEO),
Mark Wilhelms (CFO), Bernd-Dietrich Bockamp (Director Group Accounting) and Andreas Schröder
(Group Financial Reporting) as well as Hans-Josef Hosan (CTO) and Ansgar Krötz (COO). The total
remuneration paid to key management personnel of the Group is calculated as the amount of remuner-
ation paid in cash and benefits in kind. The latter primarily comprise the provision of company cars
and pension.
114
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS The total remuneration of key management personnel at the various key Stabilus Group affiliates dur-
ing the reporting period amounted to €6,705 thousand (PY: €2,375 thousand) classified as short-term
employee benefits and €33 thousand (PY: €33 thousand) classified as post-employment benefits. The
short-term employee benefits include €3.979 thousand IPO Bonus related payments which were largely
reinvested in Stabilus stock in the fiscal year 2014.
Management holds interest in Stabilus S.A. directly of about 1% of the total shares. Management fur-
ther holds indirect participations in Stabilus S.A. via partnerships under the German Civil Code (GbRs).
In each case resulting in less than 1.5% economical interest in Stabilus S.A. Certain Supervisory
board members participate as well in the partnership, in each case below 1.5% economical interest
in Stabilus S.A.
The management participation program is designed to carry out an exit via sale / disposal of all of the
interests. For the intended exit scenario, the proceeds on disposal correspond to fair value. Since, in the
exit scenario, both the acquisition and the later disposal of the interests are at fair value, the compen-
sation component has no value at the time that it is granted, so that no personnel expenses are there-
fore recorded in the consolidated financial statements of Stabilus S.A.
The total remuneration to the members of the supervisory board amounts to €146 thousands (PY: € –).
40 Subsequent events
The Group evaluates the opportunity to benefit of the current low financing cost through a new refi-
nancing.
As of November 28, 2014, there were no further events or developments that could have materially
affected the measurement and presentation of Group’s assets and liabilities as of September 30, 2014.
Luxembourg, November 28, 2014
Stabilus S.A.
Management Board
Notes
115
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
Respons ibility St atement
R E S P O N S I B I L I T Y S TAT E M E N T
We, Dietmar Siemssen (Chief Executive Officer), Mark Wilhelms (Chief Financial Officier), Bernd-
Dietrich Bockamp (Director Group Accounting) and Andreas Schröder (Group Financial Reporting
Director), confirm, to the best of our knowledge, that the consolidated financial statements which have
been prepared in accordance with the International Financial Reporting Standards as adopted by the
European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss
of Stabilus S.A. and the undertakings included in the consolidation taken as a whole and that the
Management report includes a fair review of the development and performance of the business and
the position of Stabilus S.A. and the undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and uncertainties that they face.
Luxembourg, November 28, 2014
Dietmar Siemssen
Mark Wilhelms
Bernd-Dietrich Bockamp
Andreas Schröder
Management Board
116
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS Management and Supervisory Board of Stabilus S.A.
M A N A G E M E N T A N D
S U P E R V I S O RY B O A R D O F S TA B I L U S S. A .
The Management Board comprises four members:
The Supervisory Board comprises four members:
Dietmar Siemssen (Chairman) is the Chief Executive Officer and
Udo Stark serves as a member of the Supervisory Board since 2014
was appointed to the Management Board in 2014 as well as the chair-
as well as the chairman of the Supervisory Board. He was chairman of
man of the Management Board. With 20 years of experience in the
the executive board of MTU Aero Engines AG until 2007. From 1991
automotive industry, Mr. Siemssen joined Stabilus in 2011 following a
until 2000, Mr. Stark led the listed plant construction and machinery
19-year career in various management positions at Continental AG.
group Agiv AG. Subsequently, he became chairman of the shareholder
He holds a degree in mechanical engineering and business administra-
committee at Messer Griesheim GmbH, chairman of the executive
tion. Mr. Siemssen also holds further management positions within the
board of mg technologies AG and CEO of MTU Aero Engines AG. From
Stabilus Group.
2008 to 2013, Mr. Stark served as a member of the supervisory board
of MTU Aero Engines AG. He is currently a member of the supervisory
Mark Wilhelms is the Chief Financial Officer and was appointed to
board of Bilfinger SE.
the Management Board in 2014. With 25 years of experience in the
automotive industry, Mr. Wilhelms joined Stabilus in 2009 from FTE
Nizar Ghoussaini serves as a member of the Supervisory Board since
Automotive, where he served as Chief Financial Officer for six years.
2014. He was from 1999 until 2008 the President and CEO of Benteler
From 2007, he was also head of the NAFTA region at FTE. Prior to
Automobiltechnik based in Paderborn, Germany. Prior to that, he was
that, he held various management positions in finance, plant and mar-
President of the Premium Car Division of Lear Corporation, based
keting at various locations over his 17-year career at Ford. He holds
in Sulzbach, Germany with responsibility for seating, interiors and
a degree in Process Engineering as well as a degree in Economics.
electrical / electronics business for the German and French car
Mr. Wilhelms also holds further management positions within the
companies worldwide.
Stabilus Group.
Dr. Stephan Kessel serves as a member of the Supervisory Board
Bernd-Dietrich Bockamp is the Director Group Accounting and was
since 2014. He was Chief Executive of Continental AG until 2002. Pre-
appointed to the Management Board in 2014. Mr. Bockamp joined
viously, Dr. Kessel held a variety of management positions at Continen-
Stabilus in 2011. Prior to that, he led the financial projects and system
tal AG, joining its management board in 1997 and becoming chief
team at FTE Automotive following several years at KPMG Bayerische
executive in 1999. In recent years, Dr. Kessel has taken up a number of
Treuhand. He holds a degree in industrial engineering and manage-
board positions at European companies including, among others, Sta-
ment. Mr. Bockamp also holds further management positions within
bilus. From 2008 through 2010, Dr. Kessel was Chairman of the Board
the Stabilus Group.
of the former holding company of the Operating Stabilus Group.
Andreas Schröder is the Group Financial Reporting Director and was
Andi Klein serves as a member of the Supervisory Board since 2014.
appointed to the Management Board in 2014. Mr. Schröder joined
He is an operating and investment partner at WestPark management
Stabilus in 2010. Prior to that, he worked for several years in assurance
Services Germany GmbH, which provides services exclusively to Triton
and advisory business services at Ernst & Young. He holds a degree in
and Triton portfolio companies. Formerly he held several executive
business administration. Mr. Schröder also holds further management
positions at Procter & Gamble (Executive in M&A, Restructuring &
positions within the Stabilus Group.
Turnaround, Portfolio & Long Term Strategy, Financial Management of
diverse business units in Germany, Switzerland, Belgium and the U.S.).
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ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
In de pendent Aud itor ’s R eport
I N D E P E N D E N T A U D I TO R ’ S R E P O R T
To the Shareholders of
Stabilus S.A.
2, rue Albert Borschette,
L-1246 Luxembourg
Report of the réviseur d’entreprises agréé
R E P O R T O N T H E C O N S O L I DAT E D F I N A N C I A L S TAT E M E N T S
Following our appointment by the Extraordinary General Meeting of the Shareholders dated May 5,
2014, we have audited the accompanying consolidated financial statements of Stabilus S.A and its
subsidiaries (the “Group”), which comprise the consolidated statement of financial position as at Sep-
tember 30, 2014 and the consolidated statements of comprehensive income, changes in equity and
cash flows for the year then ended, and a summary of significant accounting policies and other explan-
atory information as set out on pages 45 to 115.
Management Board's responsibility for the consolidated financial statements
The Management Board is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with International Financial Reporting Standards as adopted by the
European Union, and for such internal control as the Management Board determines is necessary to
enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Responsibility of the Réviseur d’Entreprises agréé
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with International Standards on Auditing as adopted for
Luxembourg by the Commission de Surveillance du Secteur Financier. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the judgement of the
Réviseur d’Entreprises agréé, including the assessment of the risks of material misstatement of the
consolidated financial statements, whether due to fraud or error. In making those risk assessments, the
Réviseur d’Entreprises agréé considers internal control relevant to the entity’s preparation and fair presenta-
tion of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the Management Board, as well as
evaluating the overall presentation of the consolidated financial statements.
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ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTS In depen dent Au dito r’s Report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the consolidated financial statements as set out on pages 45 to 115 give a true and
fair view of the consolidated financial position of Stabilus S.A. as of September 30, 2014, and of its
consolidated financial performance and its consolidated cash flows for the year then ended in accord-
ance with International Financial Reporting Standards as adopted by the European Union.
R E P O R T O N OT H E R L E G A L A N D R E G U L ATO RY R E Q U I R E M E N T S
The consolidated management report, including the corporate governance statement, which is the
responsibility of the Management Board, is consistent with the consolidated financial statements and
includes the information required by the law with respect to the corporate governance statement.
Luxembourg, December 1, 2014
KPMG Luxembourg S.à r.l.
Cabinet de révision agréé
Ph. Meyer
119
ANNUAL REPORT 2014CONSOLIDATED FINANCIAL STATEMENTSADDITIONAL INFORMATIOND
A D D I T I O N A L I N F O R M A T I O N
S TA B - O - M AT
A D D I T I O N A L
I N F O R M AT I O N
Swivel Chair Gas Spring has you sitting
pretty in any Position. To provide you with
a targeted, fast selection, Stabilus offers
the ready-to-install STAB-O-MAT standard
gas spring in various installation lengths.
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A N N U A L R E P O R T 2 0 1 4
121
Financ ial Calendar
F I N A N C I A L C A L E N DA R
Financial calendar
D AT E 1 ) 2 )
December 15, 2014
February 16, 2015
February 18, 2015
May 15, 2015
August 17, 2015
December 15, 2015
T _ 074
P U B L I C AT I O N / E V E N T
Publication of full year results for fiscal year 2014 (Annual Report 2014)
Publication of the first-quarter results for fiscal year 2015 (Interim Report Q1 FY15)
Annual General Meeting for fiscal year 2014
Publication of the second-quarter results for fiscal year 2015 (Interim Report Q2 FY15)
Publication of the third-quarter results for fiscal year 2015 (Interim Report Q3 FY15)
Publication of full year results for fiscal year 2015 (Annual Report 2015)
1) We cannot rule out changes of dates. We recommend checking them on our website in the Investor Relations / Financial Calendar section (www.ir.stabilus.com).
2) Please note that our fiscal year (FY) comprises a twelve-month period from October 1 until September 30 of the following calendar year, e.g. the fiscal year
2014 comprises a year ended September 30, 2014.
D I S C L A I M E R
Forward-looking statements
This annual report contains forward-looking statements that relate to the current plans,
objectives, forecasts and estimates of the management of Stabilus S.A. These state-
ments only take into account information that was available up and including the date
that this annual report was prepared. The management of Stabilus S.A. makes no guar-
antee that these forward-looking statements will prove to be right. The future develop-
ment of the Stabilus S.A. and its subsidiaries and the results that are actually achieved
are subject to a variety of risks and uncertainties which could cause actual events or
results to differ significantly from those reflected in the forward-looking statements.
Many of these factors are beyond the control of Stabilus S.A. and its subsidiaries and
therefore cannot be precisely predicted. Such factors include, but are not limited to,
changes in economic conditions and the competitive situation, changes in the law,
interest rate or exchange rate fluctuations, legal disputes and investigations, and the
availability of funds. These and other risks and uncertainties are set forth in the 2014
group management report. However, other factors could also have an adverse effect on
our business performance and results. The Stabilus S.A. neither intends to nor assumes
any separate obligation to update forward-looking statements or to change these to
reflect events or developments that occur after the publication of this annual report.
Rounding
Certain numbers in this annual report have been rounded up or down. There may there-
fore be discrepancies between the actual totals of the individual amounts in the tables
and the totals shown as well as between the numbers in the tables and the numbers
given in the corresponding analyses in the text of the annual report. All percentage
changes and key figures in the group management report were calculated using the
underlying data in millions of euros (€ millions).
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ANNUAL REPORT 2014ADDITIONAL INFORMATION A D D I T I O N A L I N F O R M A T I O N
I n f o r m a t i o n R e s o u r c e s
I N F O R M AT I O N R E S O U R C E S
Further information including news, reports and publications can be found in the investor relations sec-
tion of our website at www.ir.stabilus.com.
Investor Relations
Phone: +352 286 770 21
Fax: +352 286 770 99
Email: investors@stabilus.com
Media Relations
Phone: + 49 261 8900 502
Email: gjonethal@stabilus.com
Publisher
Stabilus S.A.
2, rue Albert Borschette
L-1246 Luxembourg
Grand Duchy of Luxembourg
Phone: +352 286 770 1
Fax: +352 286 770 99
Email: info.lu@stabilus.com
Internet: www.stabilus.com
ANNUAL REPORT 2014